SDF Report

1.
Introduction
The poultry industry in India represents a major success story. What was
largely a backyard venture before the 1960s has been transformed into a vibrant
agribusiness with an annual turnover of Rs 30 000 cores. Today, India is the third
largest egg producer in the world (after China and the United States of America),
and the nineteenth largest broiler producer. Undoubtedly, this impressive growth is a
result of several factors, such as active develop- mental support from the state and
central government, research and development support from research institutes, inter
national collaboration and private sector participation. A point worth mentioning
here is that Indian poultry is self-sufficient, supported by a broad and strong genetic
base in which the productivity levels
of broilers and layers are equal to those achieved elsewhere (e.g. in the United
States of America and the European Union). Undoubtedly, these achievements are
quite significant. Today, however, globalization is posing greater challenges:
namely, making the industry globally competitive and viable; and fulfilling the
quite enormous potential for growth that is presented by changing food habits and
preferences.
1.1 Structure of poultry production
Poultry farming involves breeding and raising chicks for various purposes.
Breeding farms hatch and raise poultry for sale to other farms. Broiler farms rear
chickens for their meat, procuring day-old chicks and keeping them for around six
weeks. Layer farms keep hens to produce eggs. Another category of operators,
which can loosely be termed “integrators” keep breeding stock and also operate
hatcheries and commercial broiler farms.
There are estimated to be roughly one lakh layer farmers and an equal
number of broiler farmers. About 70 percent of these are small-scale (3 000 – 10
000 birds) and medium-scale (10 000– 50 000 birds) farmers. Only 10 percent are
large-scale farmers with units varying from 50 000 to 4 lakh birds. Large farms
require a good level of automation.
Automation has become necessary for a number of reasons, such as hygiene
and sanitation, disease prevention and, in the case of hatchery operations, to produce
a greater number of chicks in a single hatch and to ensure better quality chicks.
The whole organized poultry sector uses hybrid varieties of poultry and has
adopted cages. The small and marginal farmers generally operate on the deep litter
system. In terms of technology, farmers have adopted new feeding and water
systems and new management, healthcare and hygiene practices. A distinctive
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feature of Indian poultry production is that it is self sufficient, supported by a very
broad and strong genetic base in which the productivity level (feed conversion
ratio – FCR) of broilers and layers is equal, if not superior, to those found in
developed countries such as the United States of America and the European Union.
India is also one of the few countries of the world, which has put into place and a
sustained specific pathogen free (SPF) egg production project, which can be
described as the last word in poultry technology. There are a dozen processing units
for broilers and about three units for egg processing (a further three are not
producing at present).All egg-processing units, such as Balaji Foods of
Venketeswara Hatcheries and SKM of Erode, have put in place the hazard analysis
and critical control point (HACCP) system in their processing units. The poultry
processing industry in India is still at a nascent stage and is growing at a very slow
pace. Most chickens in Thailand, Indonesia and Malaysia are processed and
branded. However, in India only 2 to 3 percent of the total poultry meat is
processed. The major impediments to the poultry processing are as follows: Indian
consumers mostlyprefer live and fresh chicken butchered
before their eyes, which results in 95 percent of chickens being slaughtered by
the retailers in a very unhygienic manner.
• a lack of cold chain facilities, exacerbated by power shortages, which

makes it difficult to make frozen, freshly chilled chicken available to
the consumer; and
• a lack of promotional campaigns for chicken products, as some opposed to

Non-vegetarian foods.
1.2 Major players in the poultry industry
Venketeswara Hatcheries (VH), one of the leading names in the poultry

industry in India, has played a major role in disseminating the latest techniques in
poultry keeping and animal health care. It undertakes activities such as pure-line
breeding, supply of grandparent and parent stock, feed manufacturing, chicken
processing, egg processing, SPF production, poultry vaccine production,
diagnostic services, human-resource training and production of pet foods. It is also
the first Indian company selling processed chickens under the “Venky’s” brand
name. It supplies a number of large international fast-food companies. The product
range caters to retail as well as institutional markets, and includes fresh chilled
chicken, frozen chicken (whole, boneless and portions), and several economy
products. Venky’s Mintomein, an array of ready-to-cook products (freezer-to-
fryer, microwaveable and cold cuts) has wide appeal among homemakers.
Although, the company has operations in all parts of India, it is concentrated in the
south and west. Despite the liberalized trade regime, the conglomerates constitute
around 80 percent of the layer market and 65 percent of then broiler market. Godrej
Agrovet set up its integrated poultry business in 1999. Today, the company covers
the whole spectrum of the poultry industry, from breeding, hatching and rearing of
broilers to processing and marketing of its branded chicken “Godrej Real Good
Chicken”. It also has contract farming operations in south and west India working
with
1000 farmers
1.2.1 Vertical integration/contract farming
The economies of scale that have led to integrated poultry production in

other countries have also begun to take hold in India. In southern and western parts
of India, large-scale vertical integration is catching up especially in broiler
production. Under this system, the integrator invests in the entire value chain,
including:
• Grand parent farms;

• Parent stock farms;
• Hatcheries; and Feed mills.
Poultry farmers invest in poultry sheds and equipment on their existing land.
Integrators
provide:
• Day-old chicks;
• Feed;
• Medicines/vaccines;
• Training to farmers in process and cost management; and
• Technical supervision.
Integrators take the broilers at around 42 days of age, and farmers are paid
growing charges according to agreed rates. The farmers are given an incentive
bonus if the FCR and/or mortality rate is better than the contracted level. Thus, the
farmers get considerable price insurance. Moreover, the advantage is that there are
no intermediaries: only integrator – farmer – wholesaler in the market. Farmers do
not have to make any investments in working capital. There is also no risk to
farmers from fluctuations in selling process – they get a fixed income. This
arrangement has encouraged a number of small farmers to enter the poultry
business in order to supplement their income with a stable return on their
investment.
Poultry integrators have been expanding rapidly in the states of

Karnataka, Tamil Nadu, Andhra Pradesh and Maharashtra. In Pune, in the State of
Maharashtra in western Indian, a major poultry rearing area, about 6 000 poultry
farmers are on contract with Venkateshwara Hatcheries, popularly known as
Venky’s, or with Godrej Group. Similarly, in the south, particularly in the
Coimbatore area of Tamil Nadu, integrators now reportedly account for 75 percent
of production and consumption. Integration has moved rather slowly in the northern
and easter n parts of India. The current status of integration is: South – 80 percent;
West – 70 percent; North – 10
percent; and East – 50 percent.
Key players in integration include:
1. Venkateshwara Hatcheries
2. Suguna
3. Godrej
4. Shanti
5. Taffa
6. Arumbagh
7. Skylark
Integration has not only contributed to greater production efficiencies

including lower FCR and mortality rates, but has also reduced marketing margins as
a result of the increased market power of the integrator. Besides reducing production
costs, the integrators have helped to cut consumer prices by cutting into the
traditionally large marketing margins. The integrators have tended to establish
wholesale and retail price leadership in the markets where they operate by
reducing the number of intermediaries or by selling directly through their own
retail outlets (e.g. in Coimbatore). In other regions, particularly in the north,
traditional wholesalers still dominate the markets and marketing margins and retail
prices are considerably higher than in the south. Lower retail prices have stimulated
consumption, with per capita consumption in southern India reported to be 4 times
the national average.
1.3 Producers’ association
The National Egg Coordination Committee (NECC), which has a

membership of more than 25 000 farmers, is probably the largest association of
poultry farmers in the world. Its genesis goes back to 1981. Around this time, the
Indian poultry industry was going through an unprecedented crisis. The
intermediaries controlled trade and forced prices down. As a result, farmers were
being paid less than their production costs. The scenario looked quite bleak.
Over 40 percent of farmers had stopped operations because the business Type
of vertical integration or contract farming common in the broiler industry had
become economically unviable – feed costs had more than doubled, but egg
prices remained static at 35 paisa. Determined to do something, the late Dr B.V.
Rao, along with a group of farmers, started a mass movement – they travelled across
the country holding meetings with farmers and traders. Their objective was to unite
poultry farmers from all over India, and see that they get better prices by eliminating
intermediaries from the trade.
Thus, NECC was born. Since then, NECC has played a significant role in the
betterment of poultry farmers, and the egg industry in general, through its various
programmes such as market intervention, price-support operations, egg promotion
campaigns and consumer education.
The manifold activities of NECC include:
• Price declaration;
• Deciding a reasonable price for eggs that ensures a reasonable return
for the farmer, decent margins for the intermediary and a fair price
for the customer;
• Monitoring the egg stock levels in different production centres;
• Managing stock levels and regulating the movementof stocks from
surplus to deficit regions so as to maintain a balance between
demand and supply;
• Market intervention through AgroCorpex India Ltd; Partnership
activities in the layer industry
• Organizing and uniting poultry farmers across the country;
• Creating a dependabledistribution network so that eggs can reach
every household
• Undertaking egg promotion campaigns to increase the
consumption of eggs;
• Generating employment by encouraging people to take up egg
farming and egg trading.
NECC is a completely voluntary body created by farmers, and runs on cooperative

spirit.
It makes no profits and subsists mainly on contributions from its members. Most of
today’s egg production comes from NECC members. In the broiler sector, there is
no national organization that looks after the producers’ interests. No doubt, some
regional organizations (e.g. the Broiler Growers’ Association) have emerged and
are trying to organize farmers, but the broiler marketing is largely in the hands of
big traders and commission agents in mandis (wholesale markets) like Ghazipur in
Delhi and Crawford market in Mumbai. In general, intermediaries are vital links
between producers and consumers. The margin between the farm gate price for
broilers and the price paid by the consumer is about 20 to 25 percent
1.4 Foreign direct investment in the poultry sector
Foreign direct investment (FDI) has not been a significant factor in the expansion of
inte
grated poultry operations. A large integrator operating in both the southern and
western
regions runs a processing facility built recently with the assistance of private
investment from Saudi Arabia. Two large Asian integrators, Japfa from
Indonesia and CP from Thailand, have been in the feed business in India for several
years, but so far have not expanded into poultry integration. Although farms are
importing breeding stock and technology from foreign breeders, there is currently
almost no FDI in the broiler sector. FDI is more common in pharmaceuticals
(poultry production inputs) where most companies are either multinationals or
Indian joint ventures with multinationals. Most drugs or vaccines for poultry are
produced by these units. The major feed companies are Indian owned.
According to the Reserve Bank of India, the actual inflow of FDI in the food and
food-processing sector was more than US$711.4 million (Rs 3 187 crores) up to
March 2004. Nearly 30 percent of FDI in this sector comes from EU countries such
as the Netherlands, Germany, Italy and France.
1.4.1 Constraints affecting the inflow of FDI in the poultry sector include:
• Poor power and transport infrastructure;

• Poorly defined phytosanitary measures;
• Limited market for frozen poultry;
• Lack of cold-chain facilities making it a difficult task to handle significant
volumes of chilled or frozen products;
• Competitive local prices; and
• High taxes on processed food.
A more favorable policy environment than is presently available is therefore

warranted. This would include: policies for improving infrastructure facilities which
will help to stabilize the price of poultry products, creating efficient marketing
channels that will help producers to obtain more remunerative prices; and
increasing maize production by using improved seed varieties (FAO, 2003 “with
the expansion of the poultry industry, the country’s government must address these
new issues, including economic tradeoffs between poultry producers, feed
producers, and consumers, potential
public health concerns associated with traditional slaughter an marketing
practices, and additional tariff and non-tariff policies for imports”.
1.5 Consumer demand and preferences
Patterns of poultry meat and egg consumption in India show certain

peculiarities. First, the Indian poultry market remains primarily a live bird market.
The consumption of chilled and frozen poultry products is very small – only 5
percent of the total production is sold in processed form; all the rest is sold alive.
Second, the demand for eggs is seasonal – very low in summer compared to other
seasons of the year. Eating eggs is prohibited in certain months. Further, when fish
catches are high, the demand for eggs tends to be low. Thus, the demand for eggs
fluctuates throughout the year, while supply is continuous. Developing storage
facilities or converting eggs into egg powder would be options to address the
problem. However, the demand for egg powder has so far remained low, and
building up cold storage facilities to preserve eggs takes a long time. Third, cities
and towns, home to 30 percent of India’s population, account for 75 percent of total
poultry consumption. The annual per capita egg consumption in India’s major cities,
such as Mumbai, Calcutta, Delhi and Chennai, is reported to be 100 or even as high
as 150 or 200. In contrast, annual per capita consumption in rural areas is as low as
15 eggs. The low consumption in rural areas is due to non-availability and higher
prices.
As described in Section 3, poultry meat has been gaining prominence over other
meats.
It has outpaced its two main competitors – beef and veal and buffalo meat. Does this
rep-
resent a shift in the preference pattern of households from other meats to poultry
meat,
or more generally a shift from vegetarianism to non-vegetarianism? It can be
speculated
that high mutton prices, religious restrictions on beef and pork consumption, and the
lower availability of fish in non-coastal regions may have combined to make
poultry meat the preferred and most consumed meat in India.
1.6 Role of large retailers
India is at present the most attractive destination for the world’s big retailers such as
Wall-Mart, Woolworth, Tesco, Reliance, Bharati, Birla, Tata and Godrej. All top
retailers are making a beeline for the Indian market. The latest report by AT
Kearney and CII (2006) shows India, China and the Russian Federation at the
top of the annual list of most attractive emerging markets for retail investments.
Moreover, India has retained its top position three years in a row. The Russian
Federation kept its place at number two, while China moved from the fifth rank
to third this year. Viet Nam and Ukraine are fourth and fifth respectively.
What is luring them all to the Indian market? The retail industry is almost untapped
and
undeveloped. The current total value of the Indian retail sector is estimated to be
US$330
billion. Well over 95 percent of the market is currently unorganized – small
family run stores. It is predicted that by 2011, the Indian retail sector will be
worth US$892 billion What is more important, especially from the point of view of
global players eyeing opportunities in India, is that the fastest growth is in “modern
retail” – supermarkets, department stores, hypermarkets and special shopping malls.
Only 4 percent of India’s total retail now falls within the “modern” or “organized”
category, compared to 85 percent in the United States of America and 20 percent in
China. Organized retailing in India is predicted to grow from the current $US12
billion a year to almost $US100 billion by 2011 and a dazzling $US239 billion
by 2015 (IBEF, 2006).What is driving this spectacular growth? India’s vast middle
class. It is estimated that 70 million Indians in a population of about 1 billion now
earn a salary of US$18 000 a year a figure that is set to rise to 140 million by 2011
(BBC News, 2006). Driven by changing lifestyles and strong income growth, these
people are looking for more choice as to where to spend their new-found wealth.
The changing consumption pattern of Indian consumers is encouraging the big
business houses to invest in this sunrise sector. However, the road to this rapid
growth in retail is not without difficulties. Lack of refrigeration and cold storage
chains for perishables, poor transport links, red tape at state borders, and too many
intermediaries mean that 40 percent of perishables are spoilt. More-over, the Indian
retail sector has until now been protected. Recently, restrictions on foreign
investment have been eased, allowing overseas retailers to own 51 percent of
outlets as long as they sell only single branded goods. For the first time, chains such
as McDonald’s, Marks and Spencer and The Body Shop can open and control their
own operations in India. Previously, many of them worked with franchisee partners.
1.6.1 Food retail
Food dominates the shopping basket in India. The US$6.1 billion Indian food
industry, which forms 44 percent of all fast moving consumer goods (FMCG) sales,
is growing at 9 percent per annum and has set the growth agenda for moder n trade
formats. As nearly 60 percent of the average Indian grocery basket comprises non-
branded items, the branded food industry is homing in on converting Indian
consumers to branded food. However, the degree of supermarket penetration of the
food retail market in India is still low – under 5 percent – compared to around 75
percent in Brazil, 57 percent in Argentina, 50 percent in Chile, 45 percent in
Mexico, 30 percent in Kenya, 40 percent in Thailand, 60 percent in the Philippines
and 25 percent in China.
Will the rise of supermarkets and hypermarkets throw small farmers out of
business?
Or will it give rise to bigger opportunities for small and poor farmers? There is, of
course,
a widespread perception in India that the growth of supermarkets will pose a
threat to small farmers. This stems from the experiences of other countries. In
China, for example, it is reported that producers who are certified as “green
food” producers and sell to supermarkets are paid five times more than they
would receive elsewhere. However, to get certified as a “green food” producer it is
necessary to have production records inspected and to have the production
environment sampled and checked. Supermarkets, therefore, usually sign contracts
with large producers. Similarly, in the Philippines, small producers of vegetables
often found it difficult to hold on to their business links, and eventually dropped out.
Supermarkets are concerned to reduce transaction costs. Reducing transaction costs
requires fewer transactions, and hence greater significance is given to food quality
and reliability in supply. For smallholders, these demands become an entry barrier to
the supply chain. At the same time, supermarkets open up opportunities for
smallholders. They reflect the product requirements of high-income consumers,
and transmit this information to farmers. In practice, however, supermarkets
hardly buy directly from producers. They procure goods through commissioned
agents or assemblers. Depending on the crop, and
the distribution of farmers in terms of size, these consolidators or assemblers may or
may
not choose to work with small farmers. Smallholders may find it difficult to
penetrate the
system individually. The solution lies in new forms of vertical integration such as
contract farming that would enable small farmers to continue to participate in
the supply chain.
1.7 Benefits of Chilled and Frozen Meat
1.7.1 What is warm, chilled and frozen meat?
Warm Meat is obtained from freshly slaughtered animals or poultry. The

meat is not refrigerated at any stage of the meat handling or at the point of sale,
which is usually the wet market place. Meat is highly perishable. Without
refrigeration, spoilage and food poisoning bacteria grow rapidly on the warm meat.
Chemical and biochemical changes are also accelerated under the warm conditions.
These result in rapid deterioration of the meat quality. The distribution and handling
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system for warm meat is not conducive to optimum hygiene. The warm meat does
not keep its freshness and eating quality for long.
Chilled Meat is fresh meat produced from freshly slaughtered animals or

poultry and stored under refrigeration without being frozen. In the abattoir, the
carcasses are immediately chilled down to the recommended chilled meat
temperature of 0°C to 4°C by a rapid chilling process using advanced refrigeration
technology. The chilling temperature is maintained throughout the subsequent
processing, handling, transport, storage, distribution and retail. This unbroken link
of refrigeration is referred to as a Cold Chain System for Meat. This continues
through to keeping chilled meat in home refrigerators.
Cold temperatures keep harmful bacteria from growing. Chilling also slows
down quality deterioration due to growth of spoilage bacteria as well as chemical
and biochemical changes.
Chilled meat keeps its freshness for 3 to 5 days in display chiller or home
refrigerator. It is convenient to use and can be cut into specific portions to the exact
requirements of the user.
Frozen meat is similarly processed from freshly slaughtered animals or

poultry. The meat, which is in peak condition and freshness, is preserved by rapid
freezing to colder than -18°C and is then stored and distributed in this frozen form.
Freezing stops bacterial growth. The complex chemical changes that cause
deterioration of the meat, such as rancidity, are also slowed down considerably.
Freezing meat can therefore preserve the meat in good condition and retain its
wholesomeness and quality for long periods ranging from 6 months to a year
depending on the kinds of meat. Upon thawing, the quality of the meat should be as
acceptable to the consumer as the fresh product.
1.8 COMPANY PROFILE
1.8.1 Suguna India’s largest poultry enterprise!

In its 25 years of existence, Suguna has gone from strength to strength and
has become a Rs. 2030 crore company that makes it India’s No. 1 broiler producer.
Along the way, Suguna’s pioneering efforts in contract farming helped create
thousands of rural entrepreneurs who share the growth successfully. "Poultry
Integration" introduced and pioneered by Suguna in the country has energized the
livelihoods of farmers in rural India.
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Suguna ranks among the top ten poultry companies worldwide. With
operations in 11 states across India, it offers a range of poultry products and
services. The fully integrated operations cover broiler and layer farming, hatcheries,
feed mills, processing plants, vaccines and exports. Suguna markets live broiler
chicken, value added eggs and frozen chicken. With the intent to provide consumers
with fresh, clean and hygienic packed chicken, Suguna has set up a chain of
modern retail outlets.
Quality products are delivered through stringent processes, ultra-hygienic

rearing methods that are acknowledged worldwide. The ISO certification is further
proof of Suguna's commitment to quality. The group collaborates with leading
international companies to bring the latest technology and practices.
Today, the company’s brand Suguna Chicken is a household name in India.

With its Suguna Daily Fressh outlets, Suguna Home Bites, Suguna Anytime
processed chicken and four varieties of specialty Suguna value added eggs, Suguna
is the undisputed leader in poultry products. Suguna Home Bites being the latest in
its product range is a new category of home meal replacements (HMR).
1.8.2 History
Managing Director Mr. B.Soundararajan and Joint Managing Director Mr.
G.B.Sundararajan saw potential in growing the Indian Poultry Industry through
integration, which later came to be known as Contract Farming. This led Suguna
Poultry to pioneer contract farming in India.
In 1986, Mr. B.Soundararajan and Mr. G.B.Sundararajan set up a

poultry farm with 200 layer birds at Udumalpet. During 1989 - 90, when chicken
prices crashed because of an over-supply of birds in the local market, Suguna saw
an opportunity for business growth by helping the poultry farmers who had bought
feed and medicines on credit and could not clear their dues. To help them recover
their money, these visionaries began to provide feed and health support to indebted
farmers in return for the end product - eggs. The success of this exercise gave birth
to the Suguna Integration Model.
The poultry integration model has set a win-win situation for both the farmer
and the integrator. Farmers are provided with day-old chicks, feed and health
support. Performance is monitored on a daily basis with Suguna field staff visiting
the farms to check on the health of the birds, feed intake, growth and mortality
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levels. In six weeks time, the birds are weighed and are ready to be sold by Suguna.
Farmers are paid a handsome growing charge for the birds at the end of this period.
Thus, Suguna takes this success model to the next level vision of energizing rural
India benefiting the country, farmer and the company.
A constant and relentless drive has taken the company's growth and
expansion which covers over 15,000 farmers from 8,000 villages in 11 Indian states.
Impressed by the model and its success, Suguna receives invitations from many
state governments to set up its operations. Many investors and delegates from across
borders visit Suguna’s facilities to study this model and later adopt in their own
countries.
With mastery and success in contract farming, Suguna has shaped the
poultry industry to its current position in India.
1.8.3 Strength energizing rural India
Energizing rural India through a business process that creates and sustains
innovation and strategy, by continuously adding value and care to its stakeholders
with a style of management that will be exemplary to the corporate world.
In business, there is always a better way. And the first step towards
achieving that is to have a dream. For Suguna, the dream is to shape the future of
India.
Any dream for India would be incomplete without a powerful rural revival.
This belief has driven Suguna to invest heavily in rural India and set its sights on a
powerful economic and social transformation.
1.8.4 Milestone
1984 Suguna Group was founded

1991 Introduced new Concept of contract farming in India
1992 First Hatchery
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1993 First Breeder Operation
1998 Semi Automatic Meat Processing Unit with Cold Storage
1999 Fully Automatic, Micro Processor Controlled Feed Mill
2000 Inclusion of Grand Parents
2001 Expansion of Operations into other states
2004 Soya Unit Operation in Nagpur
2006 Successful implementation of Oracle ERP systems
2007 Layer launch
2007 Asian Livestock Industry Award
2007 Daily Fressh and Suguna value added eggs launch
2008 Convenience foods launch
1.8.5 People
Suguna's largest and most valuable asset today are its people - 15,000
farmers, 25,000 channel partners and 4,800 employees who are integral to the
Suguna family. Every member of the Suguna family works towards the vision of
energizing rural India.
A multifaceted and talented workforce who brings cutting edge perspectives

to practice, Suguna believes in the potential of its people, be it farmers, traders,
veterinarians, management, finance, agricultural or engineering professionals. Every
individual is focussed on modernizing the industry to ensure Suguna becomes a
world leader in the poultry industry. Suguna’s employees are proud of the fact that
they are part of an organization that has benefited thousands of farmers and has
created employment opportunities for many more people.
Suguna has also provided employment and assured income to thousands of

farmers with its contract farming. Farmers receive assistance at every step, ensuring
that they are at zero risk with regards to price fluctuations and market conditions.
With incentive programs, farmers are constantly encouraged to perform better.
Today over 15,000 empowered farmers and 10 lakh prosperous rural households
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reflect Suguna’s commitment to improve the social and economic status of rural
India.
Over 25,000 traders, suppliers and franchisees are Suguna's channel

partners that are present across the country. A systematic and transparent chain of
transactions and a well organized forward integration has ensured a steady and
comfortable supply of products throughout the year. This has provided a perfect
opportunity for partners to grow with Suguna.
With complete support and co-ordination from every member of the family,
Suguna today is a bustling Rs. 2030 crore enterprise, rewriting the futures of
countless farmers and entrepreneurs.
1.8.6 Infrastructure
Suguna leaves no stone unturned in its commitment to deliver products of

the highest quality. In poultry integration, infrastructure becomes the backbone of
the operations. A well established infrastructure supports the poultry operations end-
to-end, resulting in quality control and optimized productivity.
The infrastructure at Suguna includes GP and parent farms, feed mills,

environmentally controlled sheds (EC Shed), hatcheries, modern processing plant,
large base of commercial contract farms, R&D centre, disease diagnostics and feed
analytical labs, ERP driven information technology systems and an effective supply
chain with its own fleet of vehicles. Suguna has made significant investments
overtime that helps you, the farmer, to leverage and benefit the most.
1.9 Retail Revolution in Suguna
Suguna Daily Fressh is a chain of high-quality, modern air-conditioned

futuristic retail stores. Operating on a dealership model, Suguna Daily Fressh retails
fresh hygienic nutritious and tender chicken in eight forms including whole dressed
chicken, portioned plain and marinated items. The outlet also stocks Suguna value
added eggs in four variants, frozen fish, sea food, sausages, salami and Suguna
Home Bites, a range of ready to cook and ready to heat-and-eat items.
Suguna Daily Fressh offers a unique shopping experience. With an elegant

ambience, the modern retail store is aesthetically pleasing and is annexed with
efficient storage facilities. The store is equipped with stainless steel work stations
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including upstanding storage units, precise cutting and packing machines, display
freezer & chiller and automatic weighing machines.
1.9.1 Store description

The Storage unit efficiently maintains an optimum temperature helping to
retain the freshness of the products. The pre-cleaned chicken is cut with a precision
machines facilitating quick and effective service. The shop area contains a glass
display chiller showcase unit to display the range of portions.
Suguna Daily Fressh conforms to the highest level in hygiene and food
safety. Chicken retailed here is export quality and meets international quality
standards.
1.9.2 Ensuring Quality

Suguna Daily Fressh chilled chicken comes from our modern processing unit
located at Udumalpet near Coimbatore in Tamil Nadu. The HACCP certified plant
is monitored by the Export Inspection Agency (EIA). The processing line has been
imported from Meyn Food Processing Technology, Netherlands, leader in the design
and manufacture of such machinery. This ensures superior quality at every stage.
Suguna’s processing plant has among the most modern and technologically
advanced processing operations in the country with a processing capacity of 56000
birds per day. The plant operates using Good Manufacturing Processes (GMP) as
determined by the HACCP requirements. The chicken products are halal cut,
cleaned and portioned in hygienic conditions untouched by hand. Every batch
undergoes meticulous quality control tests before being approved for dispatch. The
quick chilled chicken is then transported to Suguna Daily Fressh stores in reefer
trucks ensuring quality at its best.
1.9.3 Product width
1.9.3.1 Suguna’s high quality chilled chicken product range includes:
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Whole chicken Drumstick
Curry cut Lollipop
Mutton Boneless breast
Marinated Lollipop Marinated Drumstick
Marinated curry cut

(Chilli chicken style)
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1.9.3.2 Suguna’s high quality frozen chicken product range includes:
Whole chicken skin on with Whole chicken skin on without

giblets giblets
Whole chicken skinless Wings
Curry cut – skin on & skin less Minced meat
Boneless breast Liver, Gizzard, Heart and Neck
Chicken cocktail sausage Janatha chicken
Chicken salami Whole leg skin on & skinless
Marinated lollipop Whole leg skin less
Marinated curry cut Drumstick skin on & skinless
(Chilly chicken style)
1.9.3.3 Suguna’s Value Added Eggs includes:
Suguna Active Suguna Heart

Suguna Pro Suguna Shakti
1.9.4 Benefit
The demand for hygienic, clean and ready-to-cook chicken is increasing by

the day. With a successful track record in this business, Suguna is well positioned to
create quality suppliers who can cater to the fast growing demand through our Daily
Fressh dealership business model. Suguna Daily Fressh is a futuristic business
model with a steady return-on-investment (ROI). Now, you could be part of Suguna
Poultry, a Rs. 2030 crore leader of the poultry industry in India.
18
Suguna Daily Fressh provides you the opportunity to grow along with the
rapid evolution of the retail and poultry industry. Suguna’s unique business model is
designed to provide you with healthy incentives and assured monthly earnings.
In addition, the dealership partners are supported to procure appropriate store

equipments, design and architectural planning of the store and also benefit from well
planned and executed marketing promotional resources.
With 30 stores across Tamil Nadu and Kerala, Suguna Daily Fressh is fast
becoming a popular household name for hygienic chicken. By being part of the
Suguna Daily Fressh dealership network, you can associate yourself with a brand
that is trusted for quality and value.
1.10 Marketing support

As a Suguna Daily Fressh dealership you will receive strong support from
Suguna’s expert marketing team.
Various promotional events and walk-ins will be organized with the

objective of educating and attracting the upwardly mobile as well as middle class
consumers. The marketing team will also adequately focus in understanding
consumer behaviour, perception and requirements. This level of involvement will
help respond positively to consumers needs and requirements.
Other advertisement support may be provided through one or more of the

following which may be implemented in various stages of the store lifecycle.
19
Glow sign
Wall Painting Suguna Daily Fressh Magazine

Advertisement
Suguna Daily Fressh Banner
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1.11 Why suguna
Quality, vision and leadership are the defining and driving factors of any
business. These critical qualities are normally acquired over a period of time for any
new business. Now, as a Suguna Daily Fressh dealership, you can easily benefit
from these qualities coupled with Suguna’s vast experience and expertise in the
poultry sector.
Sourcing quality products, developing relationships, marketing initiatives

and most importantly retaining customers are some of the key challenges faced by a
new business owner. As a Suguna Daily Fressh dealership, these challenges are
well addressed and supported throughout your relationship. Also, with Suguna’s
backing you are assured of a minimum revenue in the formative years.
With a strong network of over 15,000 farmers, HACCP certified processing

plant and a dedicated research & development wing, you are assured of receiving
the most hygienic products that are of the highest quality. In addition, a strong
insight into consumer's needs helps Suguna innovate and introduce products that are
sought after by today’s consumer.
As a Suguna Daily Fressh dealer, you will receive complete marketing and
promotional support on a regular basis. Promotional activities will help you create
awareness and establish walk-ins to the store.
What’s more, a state-of-the-art technology infrastructure and an effective

supply chain management allows you to receive supplies on time, each time.
Experience Suguna’s participation and commitment right from the time of

initial discussions, to opening your very own Suguna Daily Fressh store. Our team
of experts will guide you throughout and help realise your dream within a month’s
time.
1.12 Quality
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At Suguna, complete care is taken to ensure that you and your family enjoy
the finest poultry products. Our quality philosophy is ingrained firmly in every
member of the Suguna family. Be it farmers, employees or suppliers, everyone’s
continuously sensitized and trained to maintain the highest quality standards.
Quality processes are strictly enforced throughout the lifecycle from the farm
till it reaches your plate. Our commitment is further reinstated with our investment
in sophisticated technology, equipment and world class facilities. Furthermore, the
chicken are carefully selected and bred in a healthy environment. The birds are fed
with the most nutritious feed - rich in Maize and Soya, produced at Suguna's own
feed mills. As a result, any Suguna product you buy is completely tasty and healthy.
It is in this constant endeavor to deliver quality products that Suguna is

regularly launching new initiatives. Be it the retail experience at Suguna Daily
Fressh, or a range of products from Suguna Anytime, Suguna Value Added Eggs
and Suguna Home Bites, you can be sure of the highest quality.
1.12.1 Ensuring quality through Bio-security and Support

At Suguna, a lot of importance is given to bio-security and support to
maintain a disease free environment for birds. Scientific bio-security measures help
farmers and employees manage hygiene levels and minimize risk of pathogens.
All contract farms and facilities are governed by Good Management Practice
(GMP) and Standard Operating Procedures (SOP). Suguna’s field supervisors visit
farms on a daily basis to evaluate the farm, feed and bird management practices.
During these visits, supervisors get a hands-on experience working with farm
owners/supervisors to help identify issues and address them effectively. With this,
Suguna brings its vast experience of poultry integration and scientific management
practices to every individual contract farm across the country.
Since hygiene is directly related to bird health, there is a strong emphasis on

hygiene practices followed at all facilities and farms throughout the lifecycle.
Hygiene practices include disinfecting, feed production and management, and bird
management. Suguna’s team also constantly monitors the pathogen levels in the
water and environment ensuring safety measures are in place. Chicks are given only
treated water stored in hygienic and clean conditions. Employees and visitors to
critical facilities such as hatcheries, breeder or grandparent farms have to undergo
22
strict standard cleansing measures such as baths, disinfectant sprays, change of
clothes, mask, cap and gloves.
Suguna standard practices and procedures are audited by ISO and have a
scientific approach combined with sound management. The farms are supported by
central R&D and technical management teams headed by General Managers of
Health and Feed.
The Daily Fressh and Suguna Anytime chicken come from Suguna’s modern
processing plant which has HACCP certification which conforms to export
standards. This ensures that the chicken is processed in a very clean and hygienic
manner, with the same standard disinfectant and cleansing procedures followed by
plant workers as part of the bio security and hazard control measures.
Go ahead and savor your favorite Suguna poultry products and be assured
that you are getting the best quality.
What’s more, all this comes to you with Suguna’s quality backing and
highest nutrition and hygiene guarantee. We welcome you to embrace the change.
Welcome to Suguna Daily Fressh!
1.13 Institutional sales
Suguna offers a wide range of innovative products to its consumers and its
partners. Suguna recognizes the importance of the quality commitment of its
institutional partners and is committed to deliver products of the highest quality.
This commitment is further underlined with the implementation of HACCP (Hazard
Analysis and Critical Control Points) systems.
Suguna is well prepared with its state-of-the-art processing plant to meet the
ever growing demand of its institutional partners. With a current monthly production
of 1500 metric tons, Suguna is all set to launch additional processing plants to cater
to the growing demand. This helps in providing institutional partners an advantage
with continuous service availability along with cost and product quality benefits.
Suguna’s innovative and popular products range from the best selling Daily
fressh chilled chicken,Suguna Home Bites, Value added eggs like sausages, salami,
stuffed turkey, galantines and Value added eggs to ready-to-eat chicken treats.
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Suguna’s layer farms across the country produce value added eggs catering
to the health and wellness conscious consumer. The hens in the farm are fed with
naturally enriched feed that contains various minerals and nutrients. These eggs are
known for their high nutrition quality compared to other table eggs.
As an innovative player in the poultry food industry, Suguna has launched a

new category of home meal replacements - Suguna Home Bites and Suguna anytime
- a range of ready to heat and eat chicken products. The recipes are created by expert
chefs and are manufactured at Suguna’s own food processing plants. Suguna Home
Bites and Suguna anytime are tasty and convenient for cooking. The expert recipes
ensure every bite tastes right.
These commitment levels to offer quality and innovative products have made
Suguna a brand to reckon with.
1.14 Exports
Being a pioneer in the poultry industry in India for more than two decades,
Suguna has successfully made inroads into the international markets. Today, Suguna
has an exceptional track record of exporting frozen chicken to countries like Saudi
Arabia, Kuwait, Dubai, Oman, Bahrain, Afghanistan, Qatar and Japan.
Partner with Suguna and you will experience that the products supplied are
of the highest quality. With visionary leadership and scientific poultry management
practices, Suguna has successfully incorporated global standards and is on par with
all major international players.
Needless to say, your demands will be met adequately with our efficient
supply chain and a huge network of over 15,000 poultry farmers. Explore a little to
know what Suguna has to offer that will keep your customers delighted with quality
supply of frozen poultry meat.
1.15 Corporate social responsibility
Ever since inception, Suguna has made social responsibility initiatives a

major part of its core values. The social responsibility initiatives today reflect
conscious efforts to transform the economic and social development of rural India.
24
Energising rural India has been the vision that accompanied Suguna's
growth. Every business activity undertaken has been and will always be linked to
this vision. Suguna’s employees share this vision and contribute towards it actively.
Another focus of Suguna has been re-planting lakhs of trees across the country to
increase the green cover and help in soil restoration. Suguna has donated over 25
lakh saplings to governmental, non-governmental, and voluntary organisations,
schools, colleges and general public.
Taking forward the core values, a host of initiatives have been put into
action. From instituting rewards to school toppers as part of educational programs,
to providing aid for government schools and hospitals, Suguna is undertaking a wide
range of socio-economic, environmental, educational and health initiatives.
Improving the quality of life of employees, their families, as well as the local
community and society at large is a promise that Suguna aims to fulfil in the long
run. Since health is an important issue, Suguna believes in initiatives such as
conducting motivational programs for children in orphanages, eye check-up camps,
blood donation camps, and artificial limb donation.
2. Review of literature - A Review of the Chicken Chain
By SafeFood - In early 2005, safefood decided that a review of the chicken

food chain could bring clarity to a number of questions and consumer concerns
surrounding the food safety and production methods associated with this
commodity. The review also looked at the nutritional properties of chicken.
2.1 Background
Safefood is undertaking two comprehensive food chain reviews over a three

year period with the aim of:
 Providing consumers with information to help them make informed

decisions.
 Helping consumers to understand how the food safety system works.
 Promoting good practice along the food chain.
 Chicken’s position as the main protein source for many consumers on the
island of Ireland underlined the need for a review of the entire chicken food
chain, from farm to fork.
25
 The rationale for choosing chicken as the subject of this review was also
based on safefood’s bi-annual consumer research survey, called safetrak.
 The safetrak findings, contained in the report, emphasise the high awareness
consumers have of chicken-related health and food safety issues.
2.1.1 The Chicken Food Chain - from farm to fork
The island of Ireland enjoys a reputation as a leading producer of food. Our

soil quality and production standards are regarded as reassurance to both the
domestic and international consumer that the produce they buy is safe and nutritious
and has been produced within a stringent framework of food safety controls.
The island’s chicken production industry adheres to rigorous international

standards. There are various levels of responsibility in this area. The Food Safety
Authority of Ireland and Food Standards Agency Northern Ireland, provide the
primary focus for all the public sector agencies involved in food safety regulation
working in the Republic of Ireland and Northern Ireland, respectively.
Their aim is to guarantee the integrity of the system in place for the
processing, distribution and retailing of food. Along the food chain the role of
inspectors, principally, veterinary personnel and environmental health officers, north
and south, is to ensure that the legislation, both domestic and European, is being
followed.
It must be stated, however, that the responsibility for attaining the highest
standards of safety in the chicken food chain, rests with the industry itself.
2.2 The Chicken Industry
The chicken industry here is a highly developed, wellregulated and

economically valuable industry. Chicken is an excellent source of protein with
approximately 90% of all adults eating chicken regularly. Relative to other protein
sources, chicken is readily available, versatile and good value.
At farm gate the poultry industry on the island of Ireland is worth over
€150m (Stg£101m) and Stg£120m (€177m) to the respective economies of the
Republic of Ireland and Northern Ireland. There are a small number of key industry
players, with eleven companies representing over 90% of all domestic broiler
production on the island. Broilers are chickens reared specifically for consumption,
as distinct from egg-laying hens.
26
The chicken industry is highly integrated along the food chain ie: the main
processors are also mainly responsible for breeding and rearing. The full report
concludes that, while chicken is, in essence, a safe and nutritious food and is subject
to considerable regulation, every opportunity to improve the processing chain
should be taken by industry, to further enhance consumer confidence.
2.2.1 Research on Consumers and Chicken
In September 2004 safefood commissioned research to identify the foods about

which consumers were most concerned. Chicken registered as the food of main
concern. From a base of over 1,300 consumers, over 40% indicated that chicken was
the food they were “most concerned about in terms of how it is produced, packaged,
sold in shops and handled in the home”. In comparison, the corresponding figure for
turkey, despite the similarities in production, packaging and sale, was just 2%.
Focus groups were conducted by safefood to further explore the reasons

behind these concerns. From these focus groups, consumers disclosed that they did
not want to be made aware of any issues with respect to chicken, which might “put
them off”. Nevertheless, it is important that the consumer is informed of any
hazards, so that they may take the necessary preventative steps to reduce the risk of
foodborne illness.
One of the recurring consumer concerns was connected with the country of
origin of the chicken. Country of origin was reported as one of the major
determinants during purchase. The naming of the producer farm or farmer on the
label was noted to provide reassurance to consumers in terms of food safety.
Consumers from both Northern Ireland and the Republic of Ireland were
comfortable with purchasing chickens from anywhere on the island. County of
origin was not, however, reported as a major determinant in the purchase of
chicken-based frozen or ready meals.
Labelling is another area which attracted consumer concern. Some aspects of

the current labelling legislation is lacking, for example, there are no labelling
requirements at the catering stage of the food chain. Currently more than 70% of all
chicken meat used in the catering industry is not sourced from the island of Ireland
or from the European Union. The full report also looks at other issues which were
raised by consumers such as animal welfare and avian influenza.
2.2. 2 The Links in the Chicken Food Chain
From a food safety perspective the overriding principle in the production of

chicken is the safety of the consumer. Therefore, only poultry of the highest
standards of safety should be placed on the market and those businesses involved at
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each link of the chain have primary responsibility for ensuring that those standards
are met.
In January 2006 a series of new food hygiene laws came into force under the
term “the hygiene package” These new pieces of legislation affect all food business
from primary producers (i.e. farmers), manufacturers, distributors, caterers and
retailers.
2.3 Review on the Potential Global Retail Industry:
Retail has played a major role world over in increasing productivity across a
wide range of consumer goods and services .The impact can be best seen in
countries like U.S.A., U.K. Mexico, Thailand and more recently China. Economies
of countries like Singapore, Malaysia, Hong Kong, Sri Lanka and Dubai are also
heavily assisted by the retail sector. Retail is the second-largest industry in the
United States both in number of establishments and number of employees. It is also
one of the largest worldwide.
The retail industry employs more than 22 million Americans and generates more
than $3 trillion in retail sale annually. Retailing is a U.S. $7 trillion sector. Wal-Mart
is the world’s largest retailer. Already the world’s largest employer with over
1million associates, Wal-Mart displaced oil giant Exxon Mobil as the world’s
largest company when it posted $219 billion in sales for fiscal 2001. Wal-Mart has
become the most successful retail brand in the world due its ability to leverage size,
market clout, and efficiency to create market dominance. Wal-Mart heads Fortune
magazine list of top 500 companies in the world. Forbes Annual List of Billionaires
has the largest number (45/497) from the retail business.
2.3.1 The Indian retail sector
The Indian retail sector is estimated to have a market size of about $ 180
billion; but the organized sector represents only 2% share of this market. Most of the
organised retailing in the country has just started recently, and has been concentrated
mainly in the metro cities. India is the last large Asian economy to liberalize its
retail sector. In Thailand, more than 40% of all consumer goods are sold through the
super markets and departmental stores. A similar phenomenon has swept through all
other Asian countries. Organised retailing in India has a huge scope because of the
vast market and the growing consciousness of the consumer about product quality
and services.
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2.4 A study conducted by Fitch – Penetration of retail industry in larger towns
& metro
A study conducted by Fitch, expects the organized retail industry to continue

to grow rapidly, especially through increased levels of penetration in larger towns
and metros and also as it begins to spread to smaller cities and B class towns.
Fuelling this growth is the growth in development of the retail-specific properties
and malls. According to the estimates available with Fitch, close to 25mn sq. ft. of
retail space is being developed and will be available for occupation over the next 36-
48 months. Fitch expects organized retail to capture 15%-20% market share by
2010.
A McKinsey report on India says organized retailing would increase the
efficiency and Productivity of entire gamut of economic activities, and would help
in achieving higher GDP Growth. At 6%, the share of employment of retail in India
is low, even when compared to Brazil (14%) and Poland (12%).
2.4.1 Different Forms of Retailing: Emergence of new formats of Retailing in

India
 Hyper marts
 Large supermarkets, typically (3,500 - 5,000 sq. ft)
 Mini supermarkets, typically (1,000 - 2,000 sq. ft)
 Convenience store, typically (7,50 - 1,000 sq. ft)
 Discount/shopping list grocer
 Traditional retailers trying to reinvent by introducing self-service formats as
well as
 Value-added services such as credit, free home delivery etc.
The Indian retail sector can be broadly classified into:

 FOOD RETAILERS
 HEALTH & BEAUTY PRODUCTS
 CLOTHING & FOOTWEAR
 HOME FURNITURE & HOUSEHOLD GOODS
 DURABLE GOODS
 LEISURE & PERSONAL GOODS
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2.4.1.1 FOOD RETAILERS
There are large number and variety of retailers in the food-retailing sector.
Traditional types of retailers, who operate small single-outlet businesses mainly
using family labour, dominate this sector .In comparison, super markets account for
a small proportion of food sales in India. However the growth rate of super market
sales has being significant in recent years because greater numbers of higher income
Indians prefer to shop at super markets due to higher standards of hygiene and
attractive ambience.
2.5 Review on Challenges of Retailing in India
Retailing as an industry in India has still a long way to go. To become a truly
flourishing industry, retailing needs to cross the following hurdles:
• Automatic approval is not allowed for foreign investment in retail.

• Regulations restricting real estate purchases, and cumbersome local laws.
• Taxation, which favors small retail businesses.
• Absence of developed supply chain and integrated IT management.
• Lack of trained work force.
• Low skill level for retailing management.
• Intrinsic complexity of retailing – rapid price changes, constant threat of
product
• Obsolescence and low margins.
2.5.1 Market Profile for Food Processing in India
Market size and structure
India has a very large range of geographical and climatic conditions and is
one of the world’s major food producers, with the output of crops alone at more than
one billion tons annually. India is also one of the largest producers of livestock, fruit
and vegetables, milk, and other crops ranging from rice to sugar and oilseeds. While
India has more than 115 million farms, more than 80 percent of these farms are less
30
than two hectares in size. Large farms (over 10 hectares) make up just one percent
of total farms, but account for 15 percent of all cultivated land.2
Food processing is the country’s fifth largest industry, representing 6.3 percent of
GDP, and employing 1.6 million workers (2.3 percent of the workforce). Primary
food processing constitutes around 60 percent of processed foods.
The level of food processing varies considerable across sub-sectors. In the

case of fruit and vegetables only two percent of production is processed, while more
than 90 percent of non perishable products such as cereals and pulses are further
processed. Even in this sector, however, processing involves very little value
addition, and is mostly confined to grading, cleaning, milling, and packing; with
negligible use of additives, preservatives, and flavors.
The following shows how much levels of processing vary for key segments in the
food processing industry5:
• Fruit and vegetables (2.2 percent)
• Milk and dairy (35 percent)
• Meat (21 percent)
• Poultry products (6 percent)
The consumption of processed and prepared foods is low, and a large segment of the
population still relies on subsistence foods, such as cereals, breads, pulses and edible
oils.
Foods are often purchased fresh and then prepared at home, leaving less scope for
value addition, product differentiation and branding. However, in contrast, rapid
change in consumer food habits and preference, particularly in urban India, are
resulting in growing acceptance and popularity of processed, value added foods. A
range of processed foods are now appearing on shop shelves. In October 2007,
India’s Ministry of Food Processing and Industry released figures showing that
exports from India’s fledgling processed food industry had climbed by 194 percent
since 2003 to reach an expected US$13.9 billion in 2007. The figures also showed
that processed food sales now account for an estimated 32 percent of India’s total
food market, equivalent to a market value of US$69 billion. However, the ministry
31
acknowledges that the domestic processed food industry still has a long way to go if
it is to meet the India’s potential, given its size and natural resources.
2.5.2 Economist Intelligence Unit- Market highlights
According to the Economist Intelligence Unit, personal disposable income in

India rose by 12.1 percent a year between 2003 and 2007 in local-currency terms.
With the rising disposable income of the growing middle class, there is increasing
demand for convenient and hygienic foods, particularly in urban areas.
As a result, the Indian food processing sector has seen significant growth,
from seven percent in 2002-03 to 13 percent in 2006-07. This growth is forecast to
continue, and food processors are introducing new products and updating traditional
recipes using improved technology and innovative packaging. The Food Processing
Industry is estimated to grow at 9-12 percent in the near future. Fruit and vegetable
processing, which is currently around two percent of the total production is likely to
increase to 10 percent by 2010, and further to 25 percent by 2025. According to a
recent “Food and Beverages” survey conducted by the Federation of India
Chambers of Commerce and Industry (FICCI), the segments which are expected to
record high growth i.e. between 10-20 percent include:
2.6 Reach of the Sub sectors
2.6.1 Meat
According to the Food and Agriculture Organization of the United Nations

(FAO), India has one of the largest stocks of livestock, with a cattle herd of 178
million, and a buffalo herd of 99 million. Most animals in India are not bred for
meat, with only 11 percent of the buffalo population, six percent of cattle, and 33
percent of the sheep population culled for meat. As a result, while meat production
grew at an annual rate of 34 percent during the period from 1999 to 2004, it was still
only worth US$12.4 million in 2005-06.
2.6.2 Poultry
Poultry processing is still largely unorganized in India, and the poultry

market centres largely on live birds. As consumers prefer fresh poultry meat,
chickens purchased for home consumption are typically slaughtered in local
32
markets. Apart from hotels and restaurants, little processed, chilled or frozen
chicken is consumed in India. However, in recent years, there has been a significant
change in the poultry business with the advent of large poultry producers such as
Venkateshwara Hatcheries, Godrej Agrovet and Suguna Poultry Ltd. With the
establishment of modern HACCP certified processing plants, processed chicken
brands such as Venky’s, Godrej Real Good Chicken and Suguna are becoming
popular in urban India.
2.6.3 Seafood
India is the third largest fish producer in the world and second in in-land fish
production. Currently fish processing is mostly targeted for export markets. There
are over 369 freezing units with a daily processing capacity of 10,266 tonnes and
499 frozen storage units with a capacity of 134,767 tonnes. Seafood exports were
worth US$1.5 billion in 2007, and the major products exported were frozen shrimps
and prawns (55 percent of exports by value), and frozen fish (20 percent of exports
by value).
2.7 The 2007-2012 Outlook for Children’s Chilled Chicken Nuggets in India
2.7. 1 WHAT IS LATENT DEMAND AND THE P.I.E.?
The concept of latent demand is rather subtle. The term latent typically refers
to something that is dormant, not observable, or not yet realized. Demand is the
notion of an economic quantity that a target population or market requires under
different assumptions of price, quality, and distribution, among other factors. Latent
demand, therefore, is commonly defined by economists as the industry earnings of a
market when that market becomes accessible and attractive to serve by competing
firms. It is a measure, therefore, of potential industry earnings (P.I.E.) or total
revenues (not profit) if India is served in an efficient manner. It is typically
expressed as the total revenues potentially extracted by firms. The “market” is
defined at a given level in the value chain. There can be latent demand at the retail
level, at the wholesale level, the manufacturing level, and the raw materials level
(the P.I.E. of higher levels of the value chain being always smaller than the P.I.E. of
levels at lower levels of the same value chain, assuming all levels maintain
minimum profitability). The latent demand for children’s chilled chicken nuggets in
India is not actual or historic sales. Nor is latent demand future sales. In fact, latent
demand can be either lower or higher than actual sales if a market is inefficient (i.e.,
33
not representative of relatively competitive levels). Inefficiencies arise from a
number of factors, including the lack of international openness, cultural barriers to
consumption, regulations, and cartel-like behavior on the part of firms. In general,
however, latent demand is typically larger than actual sales in a market.
2.8 Conclusion
In order to estimate the latent demand for children’s chilled chicken nuggets
across the states or union territories and cites of India, we used a multi-stage
approach. Before applying the approach, one needs a basic theory from which such
estimates are created. In this case, we heavily rely on the use of certain basic
economic assumptions. In particular, there is an assumption governing the shape and
type of aggregate latent demand functions. Latent demand functions relate the
income of a state or union territory, city, household, or individual to realized
consumption. Latent demand (often realized as consumption when an industry is
efficient), at any level of the value chain, takes place if an equilibrium is realized.
For firms to serve a market, they must perceive a latent demand and be able to serve
that demand at a minimal return. The single most important variable determining
consumption, assuming latent demand exists, is income (or other financial resources
at higher levels of the value chain). Other factors that can pivot or shape demand
curves include external or exogenous shocks (i.e., business cycles), and or changes
in utility for the product in question.
Ignoring, for the moment, exogenous shocks and variations in utility across
geographies, the aggregate relation between income and consumption has been a
central theme in economics. The figure below concisely summarizes one aspect of
problem. In the 1930s, John Meynard Keynes conjectured that as incomes rise, the
average propensity to consume would fall. The average propensity to consume is the
level of consumption divided by the level of income, or the slope of the line from
the origin to the consumption function. He estimated this relationship empirically
and found it to be true in the short-run (mostly based on cross-sectional data). The
higher the income, the lower the average propensity to consume. This type of
consumption function is labeled "A" in the figure below (note the rather flat slope of
the curve). In the 1940s, another macroeconomist, Simon Kuznets, estimated long-
run consumption functions which indicated that the marginal propensity to consume
was rather constant (using time series data). This type of consumption function is
shown as "B" in the figure below (note the higher slope and zero-zero intercept).ˇ
the average propensity to consume is constant.
34
RESEARCH METHODOLOGY
3. Need for the study
Nearly 10% increase in the consumption of the poultry related products in

the India year by year. Food processing is the country’s fifth largest industry,
representing 6.3 percent of GDP. There is good potential for the growth of poultry
sector in retailing business which currently consuited 6% in food processing sector.
In recent years, there has been a significant change in the poultry business with the
advent of large poultry producers such as Venkateshwara Hatcheries, Godrej
Agrovet and Suguna Poultry Ltd and changing attitude towards chilled and frozen
chicken helps the poultry industry to be more organized industry.
3.1 Objective
3.1.2 Primary Objective
• To find the retail outlet reach of SDF retail outlets.
35
(In7 Retail Outlet: 6 from Chennai & 1 from Pondicherry)
• To know the buying behavior of the consumers of chicken. And to find how
effectively the Promotional activities for SDF retail outlets and its products
as reached the consumer.
• To study the important factors which are influencing the consumer to buy the
chicken in particular outlet
3.1.3 Secondary objective
• To find how for the brand “suguna” is influencing the consumer of chicken.
• To give suggestion to improve the ambience of SDF outlet based on the

study & observation.
• To study the attitude of the consumer towards the chilled food & frozen food
concept.
3.1.4 Setting of Hypothesis
 There exist the relationship between the people who owns (2 wheeler, 4
wheeler & own house) and travels few meters from their home to buy the
chicken.
 There exist the relationships between the person who decides to when to buy
chicken and who actually buys the chicken in the retail outlet.
3.2 Research
36
The research is a set of organized activities to study and develop a model to
find a realistic problem supported by literature and data such that its
objectives are optimized and further to make recommendations for
implementation.
3.2.1 Research Methodology
The logical methods of carrying out a result are known as “Research methodology”.
The first step in the research process is to identification of the research problem here
the problem in this research is to identify the retail outlet reach of SDF to the
consumer of the chicken in nearby location of the existing outlet of SDF.
Review of literature is the 2nd step in this process, for studying the attitude
of the consumer towards chilled chicken & frozen chicken and the growth of the
poultry retailing sector in various parts of India.
Research design is the next step to review of literature, the researcher
choose the survey research type for studying the retail outlet reach of the particular
SDF outlet in seven various places in Chennai and Pondicherry.
The researcher took great care for collecting the data. The data can be
collected by the following two methods
3.2.2 Population method

The researcher did not choose the population method for collecting the data
because in population method, each and every one from that population is to be
selected. It is not possible to conduct survey to the entire population in various
locations of SDF outlets because collecting information from all consumers is a time
consuming process, so researcher choose the sampling method.
3.2.3 Sampling method

A representative part of the population is called a sample. The process of
taking a sample is called sampling. Thus the researcher takes Minimum of a 50
sample each in all the seven locations and maximum of 150 if required to particular
locations
3.3 Sampling techniques

The two types of sampling techniques are
 Probability sampling method
37
 Non- probability sampling method
3.3.1 Probability sampling

In probability sampling the samples are randomly selected from the
population. It means that every element in the total population has an equal chance
or probability for being chosen as sample.
we have to define some basic terms. These are:
• N = the number of cases in the sampling frame
• n = the number of cases in the sample
• NCn = the number of combinations (subsets) of n from N
• f = n/N = the sampling fraction
That's it. With those terms defined we can begin to define the different probability
sampling methods.
3.3.1.1 Multi-Stage Sampling

The simple, stratified, systematic and cluster are the simplest random
sampling strategies used in most real applied social research, the researcher would
use sampling methods that are considerably more complex than these simple
variations. The most important principle here is that he combines the simple
methods in a variety of useful ways that help us address our sampling needs in the
most efficient and effective manner possible. When we combine sampling methods,
we call this multi-stage sampling.
3.4 Research plan
The research process depends upon developing the most efficient plan for
gathering the needed information. Designing a research plan calls for decisions on
the data sources, research approaches, research instruments, sampling plan, and
contact methods.
Our objective was to find the “To find out the retail outlets reach with in
2km. circumference of the SDF outlet and to take location survey for the business
development”. This objective had made our project too narrow because from now
onward our task was to find the idea of collect the sample from the population.
3.5. Collection of data

The two types of data collection methods are
 Primary data collection methods
38
 Secondary data collection methods
3.5.1 Primary data

Primary data collection comprises where, when and how often the response
and their family member buy and consume chicken and it also helps to find
awareness about SDF in their locality and other aspects which influence the buying
behavior of consumer in other outlet. It was collected by conducting schedules
3.5.2 Secondary data

Secondary data collection comprises of already existing data which can be
used for the study, here researcher has used internet for collecting the company
profile, the industry profile, review of literature for getting narrow view about the
problem which is effectively used for the study
3.6 Sampling Plans:-

After collecting entire data and deciding on the research approach and
instruments, now researcher had to decide on the sampling plan which was one of
the important task, because from the bunch of people researcher had to select only
few sample. There are three way of sorting the data.
• Sampling Unit: - who is to be surveyed? And now my task was to take

survey through scheduling method from the households in and around
the circumference of 2 km from the SDF retail outlet in various location
as mentioned early, which will be sampled from the number of people.
• Sample Size: - large sample give more reliable result than small sample,
so for this reason researcher had taken around 750 people to whom
researcher should focus upon for both retail outlet reach and business
development.
• Sample Area:- The SDF which located in Pondicherry and six outlets in
Chennai are the sample area for the researcher.
3.7 Contact Methods:-
3.7.1 Schedule: - This method was the most appropriate way of survey, because in
scheduling the researcher can interact with the consumers of chicken and it helps to
39
find the real facts of the SDF and other retail outlet. And what are the important
factors that the consumer is looking for while buying chicken.
 Observation schedule
 Document schedule
 Interview schedule
3.8 Tools used for the study

 Chi-square test
 One sample test
 Percentage
 Pearson -Correlation
3.9 Limitation
 It is Difficult to meet the consumer in big apartments because of

security/Watch man
 Most of the female Consumers are not willing to engage for conducting
survey in the absence of Male in the home.
 Wrong Perception that researcher may be a sales person to the people in the
house hold because of that they are not will to listen what he is trying to tell.
 Some Vegetarian people are getting angry for conducting these types of
survey.
 It is Difficult to take survey during the afternoon time from 2.00 – 4.00 as
most of the people are taking rest in their home
 Most of the consumers are not ready to give their personal details especially
their Mobile no., age if they are female, salary if they are working in
government job or doing business.
 Researcher used to skip or felt difficult to conduct survey the houses were
pet like dogs are there.
 Some customers are not willing to complete the full survey which leads to
incomplete responses
40
4. Analysis
4.1 Primary data Analysis
The researcher collected the data through schedules and interview the
responses given the customers are as follows
Table 4.1- Number of people in the household
Location <2 3-5 6-8 <8 Missing

Pondy 10 30 5 5 0
Egmore 1 39 7 2 0
Velachery 8 32 6 0 4
Nungambakkam 4 41 5 0 0
Anna Nagar 6 33 4 2 5
Moggapair 9 107 17 10 7
Villivakkam 8 72 12 7 1
Total 46 354 56 26 18
Graph 4.1 - Number of people in the household
41
Inferences
It is clear from the table that numbers of household in the families
were between 3-5 which nearly contributes 70% and from graph it can be inferred
that nungambakkam is highest and pondy is the least in the group of 3-5. Mogappair
is the place where 10 families have a household of greater than 8. So Sdf should
take care of Mogappair and Nungambakkam particular in order develop the strong
customer base.
Table 4.2 - Gender of the person interviewed
Location Male Female

Pondy 21 29
Egmore 23 27
Velachery 26 24
Nungambakkam 19 31
Anna Nagar 20 30
Mogappair 47 103
Villivakkam 38 62
Total 194 306
42
Graph 4.2 - Gender of the person interviewed
Inferences
During the time of the scheduling and interview most of the sample who
gave the response to the survey is the female. This also clearly shows that during the
time of the survey most of the female only staying in the home. The approximately
time is between 9 am-5 pm for conducting the survey in the household in and
around the radius of 2km form the retail outlet in the particular locality.
Table 4.3 – Age of the respondents
Location <17 18-25 26-35 36-45 46-60 >60 Missing

Pondy 3 6 9 15 11 6 0
43
Egmore 3 8 15 8 5 8 3
Velachery 0 3 16 10 9 7 5
Nungambakkam 4 6 6 18 4 5 7
Anna Nagar 4 8 9 20 5 4 0
Moggapair 10 30 45 29 26 12 8
Villivakkam 12 10 23 23 18 14 0
Graph 4.3 – Age of the respondents
Inferences
From the chart it is very clear that nearly 30% and 40%of the sample from
the pondy and anna nagar respectively belongs to the age group of 36-45, in egmore
nearly 30% of the sample belongs to the age group of 26-35. In villivakkam nearly
12 percent of the sample is from age the group less than 17.
Table 4.4 – combined income
44
Location <Rs.5K 5-10K 10-20K 20-50K >50K Missing Total
Pondy 2 7 19 10 6 6 50
Egmore 2 7 20 6 0 15 50
Velachery 0 6 13 11 3 17 50
Nungambakkam 3 16 15 3 7 6 50
Anna Nagar 0 4 18 21 5 2 50
Moggapair 19 21 44 15 9 42 150
Villivakkam 12 28 22 11 5 32 100
Total 500
Graph4. 4 - combined income
Inferences
From the above chart it is clear that villivakkam and Mogappair as 12% of
combined income less than 5000,where as Anna Nagar and velachery is not having
any response in that category. Nungambakkam is highest which nearly contributes
62% of combined income of 5-20K. And Velachery is least in that group of the
income. In Anna Nagar 52% of the people are belong to the income group of greater
than 20k which is highest and it is potential area for these type of chilled and frozen
foods.
45
Table 4.5- Respondents relationship between Decision & Buying
Chi-square test
Decide Buy
Missin Childr
g Head Wife en Total
Missing 5 0 0 0 5
Head 0 175 0 0 175
Wife 0 49 96 0 145
Children 59 0 22 87 168
Grand
5 0 0 0 5
parents
Other 2 0 0 0 2
Total 71 224 118 87 500
Null Hypothesis (H0) : There is a significant between who decide when and where
to buy the chicken with whom actual buys the chicken in the shop.
χ 2
DF LS
6.98 15 5%
The above table indicates that the computed value of χ 2 is 6.98.This is less than χ 2
table value of 24.996 with 15 degrees of freedom in 5% level of significant. Hence
Null hypothesis (H0) is accepted
Level of Significance : 5%
Degrees of Freedom : (r-1) (c-1)
= (6-1) (4-1)
=15
 (O −E) 2 
χ2 = ∑ E


 
Calculated value χ2 = 6.98

46
Table value = 24.996
Inference
Since the calculated value is less than Table Value, we accept Null
Hypothesis and there is significant relationship between who decide when and
where to buy with whom actual buys the chicken in the shop
Table 4.6 -Average weekly consumption of chicken in percentage
Place < 1kg 1-2 kg 3-4 kg > 5 kg Missing
Pondy 64 10 2 4 20
Velachery 52 32 4 0 12
Nungambakkam 46 42 6 0 6
Egmore 38 32 6 4 20
Villivakkam 47 48 2 0 3
Anna Nagar 54 29 4 0 13
Moggapair 48 49 1 0 2
Inferences
In Egmore 10% of the people are consuming more 3kg of chicken per week
which is highest potential area based on the survey and observation by the
reaseacher. In Mogappair 49% of the people are consuming 1-2kg of chicken per
week which is highest in this category and in pondy 64% of the people are
consuming chicken less than one kg in their family which is comparatively good
sign for the improvement of the sales
47
TABLE 4.7- Respondents relationship owning of (2 & 4 wheeler and own house
which distance) with travelling distance for buying chicken.
Chi-square test
Own Distance
3-
Missing <500m 500-1km 1-2km 4km Total
Missing
20 0 0 0 0 20
2 wheeler
0 245 0 0 0 245
4 wheeler
37 3 25 17 12 94
Own house 128
128 0 0 0 0
TOTAL 185 248 25 17 12 487
Ho :- Distance is having significant with ownership of 2 wheeler,4wheeler and own

house
χ 2
DF LS
7.020 12 5%
The above table indicates that the computed value of χ 2 is 7.020.This is less than
χ 2 table value of 21.026 with 12 degrees of freedom in 5% level of significant.
Hence Null hypothesis (H0) is accepted
Level of Significance : 5%
Degrees of Freedom : (r-1) (c-1)
= (4-1) (5-1)
=12
 (O −E) 2 
χ2 = ∑ E


 
48
Calculated value χ2 = 7.020.
Table value = 21.026
Inference
Since the calculated value is less than Table Value, we accept Null
Hypothesis and there is significant relationship between Distance and ownership of
2 wheeler,4wheeler and own house
Table 4.8- Number of sdf customer
Sdf
Place Customer
Pondy 11
Egmore 15
Velachery 5
Nungambakkam 8
Anna Nagar 7
Moggapair 42
Villivakkam 10
Total 98
Graph 4.5- Number of sdf customer
Inference
49
In Egmore nearly 30% of the sample are the customers of the sdf which is
highest of all the locality and Mogappair is the second highest which contributes
28% in this category . Velachery and villivakkam is having only 10% of sdf
customer which clearly show that reach of the outlet is poor when compared to other
places.
Table 4.9- Do you know about sdf
Location yes no missing Total

Pondy 23 13 3 39
Egmore 24 9 2 35
Velachery 24 17 4 45
Nungambakkam 20 20 2 42
Anna Nagar 26 15 2 43
Moggapair 73 33 2 108
Villivakkam 49 40 1 90
Total 239 147 16 402
Graph 4.6- Do you know about sdf
50
Inference
Nearly 68% of the non-sdf customer know about sdf in egmore and
mogappair,60% of the non-sdf customer knows about sdf in pondy and anna nagar.
In Nungambakkam and villivakkam nealy 48% and 45% of the non -sdf customers
don’t know about sdf. And it clearly shows that reach about sdf is poor in these two
area.
Table 4.10- Do you know location of closest sdf outlets
Location Yes No
Pondy 12 11
Egmore 14 10
Velachery 14 10
Nungambakkam 5 15
Anna Nagar 15 11
Moggapair 43 30
Villivakkam 12 37
Total 115 124
51
Graph 4.7- Do you know location of closest sdf outlets
Inference
From the chart we can see the response of the non-sdf customers who
knows about sdf. This is to find whether those people knows the nearest outlet in
their locality or not. Nearly 54% from all over the places don’t know the nearest sdf
outlet in their locality. Nearly 75% of the sample form villivakkam &
Nungambakkam don’t know the sdf outlet in their locality. Mogappair outlet is
having good reach when compared to other places here nearly 58% of the people
knows the outlet in their locality.
Table 4.11- Have you visited - sdf
Location Yes No
Pondy 4 8
Egmore 3 9
Velachery 8 6
Nungambakkam 3 2
AnnaReach
A Study On Retail Outlet Nagar& Business Development
5 6 Daily FresshPage
In Suguna
52 Moggapair 15 20
Villivakkam 2 11
Total 40 61
Graph 4.8- Have you visited – sdf
Inference
This is response from those who know the nearest outlet of sdf in their
locality, here the percentage of people who visited the outlet in their locality is only
40% and almost 60% not yet visited the outlet. Many customer who dint not visit the
outlet says they are getting fresh chicken near by their house itself , where as for
getting chicken form sdf they have to travel a little bit and more over they prefer
fresh chicken rather than chilled or frozen chicken.
Table 4.12- Does anyone you knows purchase from or visited sdf
53
LOCATION Yes No Missin
g
Pondy 6 30 14
Egmore 11 35 4
Velachery 13 33 4
Nungambakkam 7 42 11
Anna Nagar 12 37 1
Moggapair 39 94 17
Villivakkam 13 75 12
Total 101 346 63
Graph 4.9- Does anyone you knows purchase from or visited sdf
54
Inference
This is question asked to the sample in order to find how far the
consumer of the chicken getting chicken in a particular shop through word of
mouth ,here nearly 68% of the people says that they don’t know about the
neighborhood and relations whether they are buying in sdf are not. And 20% of the
sample says they know the person who purchased from or visited sdf.
Table 4.13- Have you seen the advt. for sdf
Location Yes No
Pondy 21 11
Egmore 24 8
Velachery 17 6
Nungambakkam 20 12
Anna Nagar 22 19
Moggapair 49 38
Villivakkam 27 30
Total 180 124
Table 4.14 - Correlation among the various types of promotional

activities
Bus Wall
Tv Newspaper shelter poster Banner Leaflet Other
Tv 1 .679 .871 .825 .841 .916 .807
Newspaper .679 1 .759 .732 .777 .777 .a
Bus shelter .871 .759 1 .838 .963 .880 .728
Wall
.825 .732 .838 1 .824 .744 .a
poster
Banner .841 .777 .963 .824 1 .863 .694
Leaflet .916 .777 .880 .744 .863 1 .827
Other .807 .a .728 .a .694 .827 1
Inference
55
From the table it is very clear that various types of promotional activities
like
T.V, Bus shelter, Banner and leaflets are correlated with all the types where as
Newspaper, wall poster is correlated expect others (other promotional activities not
in the table) . TV is highly correlated with leaflet, Newspaper is highly correlated
with both banner and leaflet, Bus shelter is highly correlated with Banner, wall
Poster with bus shelter. Overall highest degree of correlation is between Banner &
Bus shelter with is .963
Graph-4.10. Did you want to visit an sdf after seeing the advt.
56
Inference
57
From the chart we can see that nearly 59% of the sample are interested to buy
the product after seeing the advertisement and it clearly shows that the promotional
activities play a vital role for the brand suguna and it is also one of the influencing
factor for buying chicken in the sdf outlet. Most of the customer says that they want
to buy because of the quality and cleanliness which is being highlighted in the
advertisement.
Table-4.16 One sample test- velachery
Parameter Rate factors that are Rate sdf Rate existing shop(if
important for not sdf)
customer
Price 13.261 2.234 13.580
Quality 23.383 2.319 13.546
Freshness 18.575 2.324 12.692
Cleanliness 18.379 2.319 12.689
Variety 16.029 2.293 13.109
One roof 15.383 2.293 13.054
Distance 16.697 2.271 13.788

Ambience 14.271 2.295 12.266
Inference
58
From the table we can clearly say that people in the velachery locality have
rated quality is their most important factor which they look when they are buying
the chicken and second is freshness ,cleanliness, distance, variety, one roof,
ambience and price is the least important factor for buying the chicken.
From the column three we can clearly says how the sdf customers have rated
the sdf in various parameters. Here they have rated that sdf in all the parameters out
of these freshness is most preferred one ,then quality & cleanliness, then ambience,
variety and getting under one roof respectively and price is the least one. It shows
that sdf have to adopt some pricing strategies in order to attract the customer.
From the column four we can clearly says how the non- sdf customers have
rated the shop where they are currently buying the chicken. It follows price, quality,
freshness and the least is ambience.
Table 4.17- One sample test- Egmore
Parameter Rate factors that Rate sdf Rate existing

are important for shop(if not sdf)
customer
Price 20.868 4.310 7.824
Quality 48.041 4.285 9.038
Freshness 77.180 4.365 7.765
Cleanliness 49.000 4.314 7.782
Variety 22.542 4.201 7.541
One roof 26.076 4.201 7.465
Distance 16.002 4.350 8.655
Ambience 12.934 4.319 6.342
59
Inference
From the table we can clearly say that people in the Egmore locality have
rated freshness is their most important factor which they look when they are buying
the chicken and second is cleanliness, quality, one roof, variety, price, distance and
ambience is the least important factor for buying the chicken.
From the column three we can clearly says how the sdf customers have rated
the sdf in various parameters. Here they have rated that sdf in all the parameters out
of these freshness is most preferred one, then cleanliness, quality, ambience
respectively, variety and getting under one roof is the least one. It shows that variety
and getting under one roof is not influencing most of the people to buy in sdf.
From the column four we can clearly says how the non- sdf customers have
rated the shop where they are currently buying the chicken. It follows quality, price,
freshness and the least is ambience.
5. Findings of Retail Outlet Reach
During the time of the project, form the observations and the collected data,
the researcher able to find some Positive and Negative aspects related to the retail
outlet reach in various location of the sdf outlets
5.1 Positive Findings – Pondy
 Children play a vital role in decision making factors for buying the chicken,
they nearly contributes 48% comparatively greater than head of the family
which is 34% of the sample.
 60% of the head of the families are actually buying chickens
 20% of the sample sizes are the customers of sdf.
 Nearly 50% of the people from the locality know about sdf.
 Nearly 51% of the people from the locality know the closest retail outlet of
sdf.(M.G road)
 72% of the people have seen the advertisement of Sdf.

60
 Advt. Through television had reached the heads and wife of the family
mostly.
 Quality is vital factor for nearly 90% of the sample.
 Generally, Price is not having that much impact over buying behaviour of
consumer for chicken (food) product.
 Cleanliness & hygiene are the strength of the sdf as it is being the weakness
of the competitor.
 80% the sample will definitely buy and continue their buying if sdf is
providing superior quality.
 Nearly 75% of the samples are not interested in getting discount from sdf.
 Loyalty card is accepted by most of the sample in generally as it is being the

token of loyalty.
5.1.2 Negative Findings – Pondy
 10% of the sample sizes are the customers from a single competitor (Nathan
Chicken centre) from chinna kadai market.
 Misconception between suguna chicken & sdf is there to the non customers
of sdf.
 Most of the non-customers of Sdf are not aware of chilled food concept and
they need only fresh chicken because of wrong perception of frozen chicken
5.2 Positive Findings – Egmore
 60% of the children are the decision making factor
 30% of the sample size are the customer of sdf
 It is the only place where 40% of the non-customer of sdf are purchasing
chicken far than 1-3 km
 28% of the sample knows the closest sdf
 68% - seen the Advt.( 20% wants to buy after seeing the advt)
61
 If superior Quality is provided sure – 56% of the sample will buy in Sdf
 Freshness is most preferred one, then cleanliness, quality, ambience

respectively, variety and getting under one roof is the least one.
5.2.1 Negative Findings – Egmore

 86% - Needs discount
 chicken is very soft in SDF
 Because of the bad smell in the outlet 3 of the existing customer are not
buying
 Freshness is not there
 Quality is not good
 Researcher himself felt that the outlet ambience in the egmore is not up to
the mark
 It shows that variety and getting under one roof is not influencing most of
the people to buy in sdf.
of sdf.
5.3 Positive Findings – Nungambakkam

 42% of the sample consumes 1-2kg of chicken averagely per week
 Nearly 50% of the non-sdf customers know about sdf
 But only 20% of the them knows closest outlet
 About 64% of the sample have seen the Advt. of sfd which clearly show that
suguna brand is having good reach
 Nearly 68% of the sample will sure buy if sdf is offering good quality with
hygiene
 Most of the sample prefer loyalty card which gives Buy for 5 times and get
250g free on your 6th visit
5.3.2 Negative Findings – Nungambakkam

62
 6% - visited outlet { 12% - recommended }
 Even though Nungambakkam is consider as a hot of the city reach of the

reach of the sdf outlet is poor as only 11% of the non-sdf customer knows
the nearest outlet
 This is the place where nearly 22% of the others category buys the chicken
from the shop, Most of the servants in this category are getting the chicken
nearby their house itself
5.4 Positive Findings – Velachery

 In Velachery nearly 44% of the children decides when to buy the chicken in
their families
 Nearly 72 % of the sample are degree holders in this locality (36% Both P.G
&U.G respectively)
 Almost 54% of the sample is the employee which most of them are well paid
and they are earning more than 20000 Rs.
 Only 10% - sdf customers( they are well satisfied with sdf)
 Almost 48% of the sample know about sdf and 28% - closest outlet
 Quality is their most important factor which they look when they are buying
the chicken and second is freshness, cleanliness, distance, variety, one roof,
ambience and price is the least important factor for buying the chicken.
 Reach of the brand suguna through Newspaper is high when compared to all
the place.
5.4.2 Negative Findings - Velachery

 Distance plays a main role as nearly 76% prefers to buy within 500m from
their house
 Consumption of chicken is very low in this area as nearly 52% of the sample
consume less than 1 kg in a week
 More number of Non-veg customer are living in this area
63
5.5 Positive Findings – Anna Nagar
 Reach of the outlet is good reasonable good when compared other as it is
being on of the oldest sdf retail outlet in Chennai
 Ambience is good
 22% are the customer of sdf
5.5.1 Negative Findings – Anna Nagar

 Egg are not available in the outlet
 Some Customer is not finding any difference between ordinary egg and
value added egg.
5.6 Positive Findings – Villivakkam

 Nearly 50% of the sample are having own house and 48% owns 2 wheeler
 Sample from Sidco Nagar and Aagathiyar Nagar requires free home delivery
5.6.1 Negative Findings – villivakkam

 0nly 6% - sdf customer
 Product like boneless, lollipop are not available in outlets most of the times
 Some of the customers are saying that Marinated products are not up to the
mark
 Very good potential area like Sidco Nagar and Aagathiyar Nagar are located
1.5km from the retail outlet
5.7 Positive Findings – Mogappair

 This branch is having highest number of customer and as nearly 32% of the
sample and most of the them are the regular buyer from sdf
 70% of the sample are earning more than 10,000 Rs
 Reach of the sdf is very good as 70% and ( 66% of them knows through
Advt)
 Nearly 36% of the sample knows closest outlet in their locality
64
 Promotional actives like Banner , leaflet and wall poster as a good reach
when compared to other places
5.7.1 Negative Findings – Mogappair
of sdf.
 During Sundays and other festival days service time is very slow
 Nearly 48% consume chicken of less than 1kg in a week
 62% of the sample prefer to buy chicken within 500m from their home
65
5.8 Suggestion
 Promotional activities should reach the children as they are being the
decision making factor in when and where to buy the chicken. Especially
those leaflets, pamphlet and television advertisement should attract the
children.
 Direct price discount should be avoided as it is being not liked by nearly

80 % of the head and wife in the families
 Sales men should be trained well and proper dress code should be
maintained well during the working hours.
 Some discount can be given in the festival days in order to attract more
customers but care should be taken that people should not think that sdf
comprises on the quality of the product.
 Local channel Advt. Should be improved for the affective reach of the
outlet.
66
 Mobile van can be used to attract more customer as distance is being the
most important factor for most of the people.
 As most of the sample consuming chicken mainly on Sunday and festival

days bulk free home delivery can be used to improve the customer base
from the locality.
 For loyalty customers, service should be very good in order to retain

them.
 Quick services should be there particularly on Sundays, so extra persons

can be recruited for Sundays alone in order to serve fast.
 Sponsorship can be given to educational institution for cultural program

etc and food stall can be opened during that time in order to promote the
brand and it also helps to generate revenue from it.
 Customized menu can be prepared to attract the customer for preparing

the varieties of dishes. Tie ups with the big hotels & restaurants will help
to increase the sales.
 Care should be taken to improve the ambience in egmore outlet

particularly
 Demand – supply should match for all the products in sdf particularly in
villivakkam as lots of people are complaining that products are not
available.
67
 Loyalty card may be used to get more customers as most of the sample
prefer than direct price discount and offers
 During the time of starting new outlet in the cities viral Marketing helps
to give wide publicity about the outlet
68
5.9 Conclusion
Hence setting of the Hypothesis is proved
 There exist the relationship between the people who owns (2 wheeler, 4
wheeler & own house) and travels few meters from their home to buy the
chicken.
 There exist the relationship between the people who decides to when to buy
chicken and who actually buys the chicken in the retail outlet.
Suguna poultry group which as plunged in to the chilled and frozen chicken
retailing business in various metro in the southern states of the India, one and half
year back in the name of Suguna Daily Fressh with various chilled & frozen chicken
products as captured the market share of nearly 19% in Pondicherry and six outlets
in Chennai.
69
The important factor which nearly 90% of the people looking for when they
are buying chicken is quality, freshness and cleanliness respectively. The brand
suguna is having good reach in all the location where the survey has been taken by
the researcher.
Retail outlet reach of sdf is high in both Mogappair and Egmore,

Promotional activities through T.V advertisement help a lot in reaching the brand
for various classes and all age groups of the people. As children are the deciding
when to buy and where buy chicken in most of the houses, proper promotional
activities and strategies should be adopted in order to attract children and awareness
about the concept should be given to the consumer of the chicken.
70
Bibliography
1. Kothari C.R (2002): ‘Research Methodology’ Wishwa Prabakaran,

New Delhi.
2 Richard I. Levin, David S. Rubin (2002): ‘Statistics for Management’,
Prentice Hall of India Private Limited, New Delhi, and 7th Edition.
3 Philip Kotler (2003): ‘Marketing Management’, Pearson Limited,
Singapore, and 11th Edition.
4 Mrs. Gilani (April, May, September 2004): ‘Indian Journal of
MARKETING’, Print India, New Delhi.
6 John Pribble III , Research scholar, Cambridge University
Webliography
www.sugunapoultry.com
www.mouthshot.com
www.poultry.com
www.socialresearch.com
www.rai.com
www.google.com
www.spss.com
71

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1.

1.1 Structure of poultry production

• a lack of cold chain facilities, exacerbated by power shortages, which

• a lack of promotional campaigns for chicken products, as some opposed to

1.2 Major players in the poultry industry

Venketeswara Hatcheries (VH), one of the leading names in the poultry

1.2.1 Vertical integration/contract farming

The economies of scale that have led to integrated poultry production in

• Grand parent farms;

Poultry integrators have been expanding rapidly in the states of

Key players in integration include:

Integration has not only contributed to greater production efficiencies

The National Egg Coordination Committee (NECC), which has a

The manifold activities of NECC include:

NECC is a completely voluntary body created by farmers, and runs on cooperative

1.4 Foreign direct investment in the poultry sector

• Poor power and transport infrastructure;

A more favorable policy environment than is presently available is therefore

1.5 Consumer demand and preferences

Patterns of poultry meat and egg consumption in India show certain

1.6 Role of large retailers

1.6.1 Food retail

1.7 Benefits of Chilled and Frozen Meat

1.7.1 What is warm, chilled and frozen meat?

Warm Meat is obtained from freshly slaughtered animals or poultry. The

Chilled Meat is fresh meat produced from freshly slaughtered animals or

Frozen meat is similarly processed from freshly slaughtered animals or

1.8 COMPANY PROFILE

1.8.1 Suguna India’s largest poultry enterprise!

Quality products are delivered through stringent processes, ultra-hygienic

Today, the company’s brand Suguna Chicken is a household name in India.

In 1986, Mr. B.Soundararajan and Mr. G.B.Sundararajan set up a

1.8.3 Strength energizing rural India

1984 Suguna Group was founded

A multifaceted and talented workforce who brings cutting edge perspectives

Suguna has also provided employment and assured income to thousands of

Over 25,000 traders, suppliers and franchisees are Suguna's channel

Suguna leaves no stone unturned in its commitment to deliver products of

The infrastructure at Suguna includes GP and parent farms, feed mills,

1.9 Retail Revolution in Suguna

Suguna Daily Fressh is a chain of high-quality, modern air-conditioned

Suguna Daily Fressh offers a unique shopping experience. With an elegant

1.9.1 Store description

1.9.2 Ensuring Quality

1.9.3 Product width

1.9.3.1 Suguna’s high quality chilled chicken product range includes:

Curry cut Lollipop

Mutton Boneless breast

Marinated Lollipop Marinated Drumstick

Marinated curry cut

Whole chicken skin on with Whole chicken skin on without

1.9.3.3 Suguna’s Value Added Eggs includes:

Suguna Active Suguna Heart

The demand for hygienic, clean and ready-to-cook chicken is increasing by

In addition, the dealership partners are supported to procure appropriate store

1.10 Marketing support

Various promotional events and walk-ins will be organized with the

Other advertisement support may be provided through one or more of the

Wall Painting Suguna Daily Fressh Magazine

Suguna Daily Fressh Banner

Sourcing quality products, developing relationships, marketing initiatives

With a strong network of over 15,000 farmers, HACCP certified processing

What’s more, a state-of-the-art technology infrastructure and an effective