CHAPTER-I

Introduction:-
“Consumer is the profit. Everything else is overhead”
As the markets are moving in 21st century, that they have characterized
by enormous change due to changing pattern of economical, political, legal,
socio-cultural, technological and natural factors. At this context,
manufacturing of a product has become a simple task but making the product
into the hands of a consumer for consumption became a difficult one, since
the consumer’s buying decisions have been varying from time to time based
on their values, believes, attitudes, principles, opinions, interests, etc. The job
of marketer has become too difficult in this changing scenario. However,
understanding of the consumers’ perception towards the products and
organization is a challenging task to the marketing people.
Perception is the process by which an individual selects, organizes and
interprets information inputs to create a meaningful picture of the world. The
key word is definition perception is individual; one person might perceive a
fast talking sales person as aggressive, another as intelligent. People can
emerge with different perception of the object Customers Oriented thinking
requires the company to define customers needs from of view.
Every product involves tradeoffs and management cannot know what
there are without talking and researching customers. Thus a car buyer would
like a high performance car that never breaks down, that is safe, attractively
styled and also cheap or affordable for the people. Since all of these virtues
cannot be combined in one car, the car designers must make hard choices not
on what pleases them but rather on what customers prefer or expect from
them or from the product that they are going to buy.

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Significance of the Study:-
“Consumer is the King”
“Consumer is the Sovereign”
The above two punch lines describe the role of a consumer in the
business. All the marketing activities resolve around creation of consumer
satisfaction. The marketing manager is an accountable person from planning
for a product to making the product available to the consumer for the purpose
of consumption. By keeping, these important functions the marketing
department draws a good number of policies and strategies.
The sound marketing policy is one, which aims at identification of
consumer’s needs, wants, and desires, designing of the products, goods and
services and distributes them among the target group of consumers in an
efficient manner where the cost, effort and time shall be optimally minimum.
Generally, the consumers buying decisions are stimulated by various
internal and external factors. Perception is one among the internal factors by
which he / she formulates the purchasing decision. However, perception
plays a significant role in designing of buying decision based on the
influencers.
An individual behaviour is often connected to his / her perceptions and
may not be based on the ‘actual’ or ‘reality’. For a marketer also,
understanding of consumer behaviour is very important. The behaviour of
the consumer at the market place will depend on what he ‘thinks as a reality’
or on his perception and knowledge about the world around him. Thus, for
having a better understanding of the buying behaviour of the individuals
marketers must examine the importance of perception and its integration with
the related concepts. This information will help him to device marketing
strategies and programmes such as to help consumers to perceive their
(firm’s) products or services positively.

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 With this backdrop, the present project “Consumer Perception on
CAPOL” is selected for his topic of the study and concentrates on identifying
the perception of the consumers over the functions and services offered.

Objectives of the Study:-

The chief purpose of the present project is to elicit the perception of the
consumers over CAPOL besides the services that are received by him from
the Oil Industry. However, a detailed set of the objectives are as follows:

 To examine the perception of the consumers to prefer CAPOL.

 To identify the problems relating to “CAPOL” to Product, Price,

Promotion and Distribution.

 Finally, to suggest suitable measures based on the identified marketing

problems for the well-being of CAPOL and the Public at large.

Methodology & Sources of Data:-

The study is empirical in nature because quantifying consumer
perception is an impossible task since consumer perception is a psychological
phenomenon, as it is based on data personally collected with the help of a
schedule, where the respondents (consumers) are asked to express their
amount of agreement in terms of excellent, very good, good, average and
poor which can be seen from Appendix – I. A set of schedules have been
used for collection of relevant data. The project trainee visited the sample
respondents in Chirala and its surrounding areas to collect data. While
collecting the data the project trainee got mixed up with the sample
respondents. It also gave an opportunity to the project trainee to observe the
various problems faced by the respondents. This enhanced the quality of the
data obtained from the respondents. All attempts have been made to extract
the correct information through informal discussion with the respondents.

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Selection of the Sample:-
During this survey as many as 50 consumers have been chosen as
sample consumers of Prakasam, Krishna, West Godavari Districts. In these
districts some of the places surveyed are Chirala, Parchoor, Vijayawada,
Machilipatnam, Palakollu, Penugonda.
The required data for the present study has been collected from the
above sample respondents, with the help of the Schedule exhibited in
Appendix – I.

Tools used for Analysis:-

Only percentages (%) are represented to analysis and interpret the data
collected.

Scope of the Study:-

The present project “Consumer Perception on CAPOL” makes an
attempt to identify, evaluate and to provide numerous suggestions over the
Marketing problems and no effort has been made on the other functional
activities.

Limitations of the Study:-

In spite of the fact that the project trainee has taken all necessary care
to see that his project work is free from some inherent limitations, the present
study still suffers from limitations as under:

 The project trainee confronted with several data collection problems.

These are about both primary data and secondary data also.

 While collecting primary data, the project trainee could not have
collected the respondent’s real perceptions as some sort of personal bias
of respondents crept in. Accordingly, the result interpreted in the report,
have to be evaluated.

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 This project work also suffers from time constraints also. The quality of
findings definitely could be better had the researcher devoted some more
time, which was beyond his control.

 It is also possible that conclusions and suggestions also to some extent

are effected not only by the bias of the respondents but also of the
researcher himself.
In the light of the above limitations the present project work is to be
evaluated as for as quality is concerned the research has taken every care in
minimizing the effect these limitations and in making it qualitative,
acceptable and useful to all people concerned.

Period taken for the Study:-

The present project “Consumer Perception on CAPOL”, has
compiled with the help of the data collected for both primary and secondary
by considering the marketing practices of CAPOL for 2013-2014 to 2017-
2018 i.e., 5 years.

Plan of the Study:-

The study has been divided into six chapters.
The first chapter describes the problem of the study, to define its
objectives and to discuss the methodology employed. Besides, efforts are
also made to outline scope, period taken for the study and plan of the study
with limitations of present study.
The second chapter deals with conceptual framework of perception in
terms of definition, elements, importance, theories, process, factors (both
internal and external) and the marketing implications.
The third chapter offers a comprehensive and exhaustive profile of
Agro Products and Oil industry.

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 The fourth chapter highlights an extensive profile of CAPOL in terms
of establishment, functions and services, the sample unit chosen for the
project work.
The fifth chapter deals with the data analysis and its interpretation
with necessary tables and representations with tables and graphs.
The sixth chapter analyzes various problems faced by the sample size
and offers suggestions drawn from the study.

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 CHAPTER-II
Introduction:-
There is usually a tendency on the part of the people to view the same
phenomenon / event / situation differently. Different persons shall view the
same event differently and thus respond in a different manner. This is a
common occurrence among human beings. Because, as diverse individuals
they have a natural tendency to consider ‘reality’ as a unique personal
occurrence based on his / her needs, wants, attitude, belief, value system and
past experiences. This kind of diversified behaviour among the human beings
is spelled out as ‘Perception’.
In general, the task of a marketing department of an organization ends
with creation of consumer satisfaction rather than planning and designing of
an offer. In this crucial juncture, the marketing people have to understand the
behavioural pattern of the individuals i.e., consumers, by which they
formulate purchasing decisions. The buying decisions of the target group are
navigated by their individual and psychological factors like motivation,
learning, perception, personality, etc. However, all the external and internal
factors, which have been playing a vital role in making of purchasing
decisions and in which, perception contributes a lot in determining of the
needs, wants and desires of the target audience.
Perception is the process by which an individual selects, organizes and
interprets information inputs to create a meaningful picture of the world. The
key word is definition perception is individual; one person might perceive a
fast talking sales person as aggressive, another as intelligent. People can
emerge with different perception of the object Customers Oriented thinking
requires the company to define customers needs from of view.

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 Every product involves tradeoffs and management cannot know what
there are without talking and researching customers. Thus a car buyer would
like a high performance car that never breaks down, that is safe, attractively
styled and also cheap or affordable for the people. Since all of these virtues
cannot be combined in one car, the car designers must make hard choices not
on what pleases them but rather on what customers prefer or expect from
them or from the product that they are going to buy.
As the main aim is that after all to make a sale through meeting the
Customers’ needs. The process by which an individual selects, organizes, and
interprets stimuli into a meaningful and coherent picture of the world. The
process by which people translates the sensory impressions into a coherent
and unified view of the world around them. Though necessarily based on
incomplete and unverified (or unreliable) information, perception is equated
with reality for most practical purposes and guides human behavior in
general.
Every product involves tradeoffs and management cannot know what
there are without talking and researching customers. Thus a car buyer would
like a high performance car that never breaks down, that is safe, attractively
styled and also cheap or affordable for the people. Since all of these virtues
cannot be combined in one car, the car designers must make hard choices not
on what pleases them but rather on what customers prefer or expect from
them or from the product that they are going to buy.
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Consumer Perception:
Definitions:

Perception is basically a cognitive process and an individual’s activities,

emotions, feelings etc. are based on his / her surroundings or environment.
– Sigmond Fraud

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Perception is the process of selecting, organizing and interpreting or
attaching meaning to events happening in environment. – L.M. Prasad

Perception is a mental process whereby an individual selects data or

information from the environment organizes it and then draws significance
or meaning from it. – American Marketing Association

Elements of Consumer Perception:

 Sensation  Differential threshold

 Absolute threshold  Subliminal Perception

Consumer Perception Theories:

Three areas of perception determine various perception theories like
self perception, price perception and perception of a benefit to quality of life.
Self Perception:
Self perception theory attempts to explain how individuals develop an
understanding of the motivations behind their own behavior. Self perception
by customers relates to values and motivations that drive buying behavior --
which is also an important aspect of consumer perception theory. For
instance, a study by researchers at the University of Massachusetts at
Amherst addressed how self perception shaped consumers' buying behavior.
The study considered the question of whether consumers believed their
buying decisions had a real effect on issues such as environmental impact.
The researchers concluded that consumers' self perception was a driving
factor in whether or not they placed a priority on socially conscious purchase
and consumption practices.
Consumers who viewed themselves as socially conscious tended to
place more weight on issues such as environmental impact when making
buying decisions than consumers who did not hold similar views of
themselves.

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Price Perception:
While mass merchandisers such as Wal-Mart emphasize low prices as
an inherent virtue, upscale merchants attempt to emphasize quality and value
for money to appeal to potential customers. Researchers at the School of
Business Administration at LaSalle University and LeBow College of
Business at Drexel University considered several factors, including price
perception -- whether consumers believed they were being charged fair prices
-- in determining whether online shoppers would make repeat purchases
through the same website.
The researchers concluded that price perception strongly influenced
whether customers were satisfied with their purchases and whether they
would make future purchases. Two factors that shaped price perception were
the perceived quality of the merchandise or service in question and price
comparisons.
Benefit Perception:
The benefit perception theory provides a colourful description over the
consumer’s purchasing process and it favours that the consumer holds a
product by identifying and evaluating the benefit sought out from a particular
product or service. In general, the amount of the benefit, what the consumer
shall have through a product is in the form of quantitative and qualitative.
The quantitative factors, those are the external appeal of a product whereas,
qualitative factors includes the internal appeal.

Stages of Perception:
Four distinct stages of perception occur during consumer information
processing:

 Sensation  Interpretation

 Attention  Retention

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Sensation:
Sensation describes what occurs when a person's senses are initially
exposed to the external stimulus of a product or brand marketing. The sensory
receptors of a consumer are engaged by product or brand cues through sight,
sound, smell, taste and texture. For example, Starbucks engages all the senses
in its sensory brand marketing.
A customer who enters a Starbucks coffee shop may hear the sounds
and smell the aroma of the grinding of fresh coffee in the store. Background
music and a unique store design round out the experience of the taste of hot or
cold coffee and food products that can be enjoyed in-store at quaint cafe
tables.
Attention:
In consumer information processing, attention occurs when a person
lingers and gives mental processing capacity to the external stimulus from a
product or brand. Selective perception is when a consumer pays attention to
messages that are consistent with her attitudes, beliefs and needs. When a
product is inconsistent with these factors, the consumer will withdraw
attention.
Interpretation:
Interpretation occurs when a person assigns a meaning to the sensory
stimulus from a product or brand marketing. Comprehension is aided by
expectations and familiarity. A consumer scans his memory to retrieve
previous experiences with the brand or a similar brand.
Store-brand marketing frequently capitalizes on the interpretation stage
when product packaging design contains logos, colors and other elements that
are similar to national brands that consumers are generally more familiar
with.

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Retention:
The conclusion of the consumer perception process is the retention
stage. This is marked by the storage of product or brand information in short-
term and long-term memory.
The marketer's goal is to provide positive stimuli in the proceeding
stages that translate into consumers storing the information about the product
or brand into long-term memory.

Factors Influencing on Perception:

There is a tendency among people to consciously see and hear only
certain aspects of the advertising message which is being communicated.
Perception is a selection process. Usually, people are able to sense and
receive only limited information from the environment and hence are
characteristically selective. During the process of selection, certain aspects of
stimuli are screened out and others admitted. These aspects of the stimuli
which are admitted remain and fall within the threshold of the person based
on the following presentation.
Internal Factors External Factors
P
 Selective attention E  Intensity and Size
R
 Selective exposure, comprehension C  Position
and retention E  Contrast
P
 Perceptual Vigilance or defense T  Novelty
I
 Expectation O  Repetition
 Subliminal perception N  Movement
Intensity:
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The intensity of stimulus implies that the more intense the stimulus
audio or visual, the more is the likelihood it will be perceived. A loud noise,
strong odour or bright light or bright colours will be more readily perceived
than soft sound, weak odour or dim light. It is because of this advantage that
advertisers employ intensity to draw the consumers' attention.

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Size:
The size of the object or stimulus has a greater impact on the
perception process because the size influences attention and recognition in a
more effective manner. A Great Den dog which is tall attracts the attention.
At the same time a pocket dog also attracts attention because of its size.
However, generally the larger the object the more likely it will be
perceived. The amount of attention enhances with the size of the newspaper
advertisement exposed to the individuals although the increase in attention
may not be directly proportional to the increase in size.
Contrast:
Contrasting objects have more impact on behaviour. The contrast
principle states that external stimuli, which stand out against the background
or which, are not what the people expect will receive attention. Plant safety
signs, which have black lettering on a yellow background or white lettering
on a red background, are attentions getting.
Any change in the accustomed atmosphere attracts attraction. His if
one or more of the machines should come suddenly to a half, the supervisor
would immediately notice the difference in noise level, also, a person who
has fallen asleep in a bus because of the drone of the engine wakes up
immediately the engine stops.
Repetition:
Repeated stimuli have more impact on performances than a single
statement. Repetition has the advantage of being attention catching. Perhaps,
it is because of this that supervisors tend to repeat directions regarding job
instructions several times for even simple tasks to hold the attention of their
workers. Advertisers while putting T.V. or radio advertisements repeat the
brand name they are advertising.

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Movement:
The factor of movement implies that the individuals attend to changing
objects in their field of vision than to static objects. It is because of this
advantage that advertisers involve signs, which include moving objects in
their campaigns. At an unconscious level the animals in the jungles make use
of this principle. A tiger lying in wait is motionless until his prey is nearer
him and then jumps at an appropriate moment.
Novelty and familiarity:
A novel object in the familiar situation or a familiar object in a novel
situation tends to attract attention. Thus a white person or a black person in
India catches attention faster. Job rotation is an example of this principle.
Recent research indicates that job rotation not only increased attention but
also employees' acquisition of new skills.
Situations:
Situations have a great influence on people's perceptions. A favourable
work environment develops a positive attitude and work culture because the
perception process is easily channelised and rightly directed.

Importance of Consumer Perception:

The success of a business depends upon its ability to attract and retain
customers that are willing to purchase goods and services at prices that are
profitable to the company. Recent research indicates that job rotation not only
increased attention but also employees' acquisition of new skills. Consumer
perception describes how customers and potential customers view a company
and its products and services.
Consumer perception is important to businesses since it can influence
consumer behavior, which ultimately affects the profitability of a business.
Many businesses spend large amounts of resources to influence consumer
perceptions.

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The Perceptual Process:
 Sensation: An individual’s ability to detect stimuli in the immediate
environment.
 Selection: The process a person uses to eliminate some of the stimuli
that have been sensed and to retain others for further
processing.
 Organization:The process of placing selected perceptual stimuli into a
framework for “storage.”
 Translation: The stage of the perceptual process at which stimuli are
interpreted and given meaning.

Key issues in Consumer Perception:

 Perceived Price  Perceived Quality

 Perceived Risks

 Information  Brand loyalty

 Brand-store-image  Most expensive-Largest stores

Marketing Implications:
 Selective Exposure  Perceptual Defense
 Selective Attention  Perceptual Blocking

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 CHAPTER-III
Origin of Agro Industry:
[ The beginning of 'agro' or 'agriculture' marks the beginning of
'civilized' or 'sedentary' society. Climate change and increase in population
during the Holocene Era (10,000 BC onwards) led to the evolution of
agriculture. During the Bronze Age (9000 BC onwards), domestication of
plants and animals transformed the profession of the early Homo sapiens
from hunting and gathering to selective hunting, herding and finally to settled
agriculture. Eventually the agricultural practices enabled people to establish
permanent settlements and expand urban based societies. Cultivation marks
the transition from nomadic pre-historic societies to the settled Neolithic
lifestyle some time around 7000 BC. As per the modern definition of
agriculture which would be" an aggregate of large scale intensive cultivation
of land, mono-cropping, organized irrigation, and use of a specialized labor
force", the title "inventors of agriculture" would go to the Sumerians, starting
ca. 5,500 BC

 Originally fields were cleared of weeds and prepared for planting by

hand at great effort, using primitive hoes or digging sticks

 The Renaissance saw the innovation of the three field system of crop
rotation and wide spread usage of the moldboard plow

 The early phase of Industrial Revolution witnessed new agricultural

practices like enclosure, mechanization, four-field crop rotation and
selective breeding

 The science-driven innovations of 19th and 20th centuries led to the

mechanization of the cultivation, i.e. the use of tractors.

 The Muslim Farmers in North Africa and the Near East of the Medieval
world are credited with inventions of extensive irrigation based on

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 hydraulic and hydrostatic principles such as norias, water mills, water
raising machines, dams and reservoirs

 The invention of the scratch plow (also called 'plough') about 6,000
years ago was a great labor-saving device for humans - the beginning of
systematic substitution of other forms of energy, in this case animal
power, for human muscles

Meaning of Agro Industries:

The word “Agro Industries” broadly means industries
manufacturing inputs for agriculture or the industries processing agricultural
outputs. Agencies supporting agriculture by designing and manufacturing
inputs are termed as “Agro Industries” and those supporting by agricultural
products are termed as “Agro based industries”. Modern Agro industries
manufacture chemicals and supply agricultural input either on each basis or
realize the value in installments.
According to planning commission “Any enterprise producing and
supplying chemicals inputs to agriculture is an Agro based industry”. Agro
industries and Agro based industries has increased in the same manner. We
found the improvement not only in output of cotton but also in the whole
range of plantations like tea, coffee, groundnuts, cashew nuts and course juts.
Generally most of the industries use agriculture output as basic raw
materials. But this concept defers in case of Agro industries. It is conformed
to those industries that are engaged in processing the agriculture product
either for consumption or for the use of industry.
Since Agro industries directly influence the cost structure of
forming Agro based industries. They have their impact on the receipts of the
farmer Agro industries also serve as a mean for providing better employment
opportunities to the labor during off-season. The purpose of establishing
Agro industries co-operation is not only to equip former with modern

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implements, but also to train them in the operation of machines, which in the
early state of mechanization and nationalization of agriculture.

Features of Agro-Industry:

 Oils - primarily a commodity market – price sensitive

 Effective distribution chain – through a complex network of C & F

agents, wholesalers / stockiest & retailers (kirana shops, supermarkets)

 Oil sold in bulk (tin, HDPE containers) to institutions - In retails packs

(PET bottles, cans, jars, pouches) to small customers

 Seasonal demand for oils & vanaspathi – September to November

(peak season)

 Regulation - Under the Edible Oils Packaging (Regulation) Order, 1998,

edible oils cannot be sold loose’ but can be sold only in ‘packed’ form

 Oil consumption – North is largest market, followed by South, West &

East Zones

Imports and Prices:

 Oils and vanaspathi substitutes can be freely imported under OGL

 Import duties - 15% basic + 10% surcharge (Oil); 40% basic (Oilseeds)

 Large scale imports of oils and vanaspathi substitutes - primarily to

check price rise and meet supply shortages

Usage:

 Oil and Vanaspathi used as cooking media (in households, hotels,

restaurants, canteens, institutions)

 Vanaspathi used as an industrial input - for making bakery products

confectionery

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Future:

 Macroeconomic factors : Population growth, per capita income,

purchasing power, oilseeds crop

 Influence of branded products – ‘health’ message

 Growing preference for convenience foods

 Raw material sourcing : focus on improving yields, getting better quality

oilseeds, ensuring regular supplies – through symbiotic relationship with
frame

Role of Agro Industry in India:

Agriculture in India, the preeminent sector of the economy, is the
source of livelihood of almost two thirds of the workforce in the country. The
contribution of agriculture and allied activities to India's economic growth in
recent years has been no less significant than that of industry and services.
The importance of agriculture to the country is best summed up by this
statement: "If agriculture survives, India survives".
Indian agricultural production in most parts of the country is closely
related to skillful and wise water-management practices. Most of the
agricultural practices in India confined to the few monsoon months. During
the monsoon season, India is usually endowed with generous rainfall;
although not infrequently, this bountiful monsoon turns into a terror, causing
uncontrollable floods in parts of the country. In a matter of antithesis, every
few years, the monsoon is erratic and deficient, leading to drought and the
possibility of famine. This explains the inextricable link between Indian
Agriculture and effective water-management practices known across different
parts of India since the ancient times.
According to the history of the Indian agriculture water-management
practices are known to have either been taken up by the state, or by local

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village communities since the earliest times. Regional rulers, or local
representatives of the state were generally obliged to allocate a certain
percentage of the agricultural taxes on building and managing water-storage,
water-harvesting and/or water-diverting structures which facilitated a second
crop, and provided water for drinking and other purposes in the long dry
season.
The British rule witnessed the destruction of century-old water
management structures and a virtual wreckage of the knowledge systems and
cultural traditions that had helped build and preserve these water-management
techniques over the centuries in states such as Bihar, Bengal, Karnataka,
Tamil Nadu and others. Owing to this, during the colonial era, famines were
frequent and famine commissions were abundant. The growth rate in food
production during the 1900-1947 periods was hardly 0.1 per cent. Most of the
important institutional developments in agriculture emanated from the
recommendations of famine commissions. The great Bengal Famine of 1942-
43 provided the backdrop to India’s Independence.
The stagnant performance of agriculture in India during the colonial
period was turned into a sustained growth since 1947, with a stronger
performance in India especially in terms of per-capita food production
The early years of Independence witnessed accentuation on the
development of infrastructure for scientific agriculture. The steps taken
included the establishment of fertilizer and pesticide factories, construction of
large multi-purpose irrigation-cum-power projects, organization of
community development and national extension programmes and, above all,
the starting of agricultural universities as well as new agricultural research
institutions across the length and breadth of the country, However, the growth
in food production was inadequate to meet the consumption needs of the
growing population which necessitated food imports.

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Green, White and Yellow Revolutions
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Policy makers and planners, in order to address the concerns about

national independence, security, and political stability realized that self-
sufficiency in food production was an absolute prerequisite. This perception
led to a program of agricultural improvement called the Intensive Agriculture
District Programme (IADP) and eventually to the Green Revolution. The
National Bank for Agriculture and Rural Development (NABARD) was set
up. All these steps led to a quantum jump in the productivity and production
of crops.


The Green revolution generated a mood of self-confidence in our

agricultural capability, which led to the next phase characterized by the
Technology Mission. Under this approach, the focus was on conservation,
cultivation, consumption, and commerce. An end-to-end approach was
introduced involving attention to all links in the production-consumption
chain, owing to which progress was steady and sometimes striking as in the
case of milk and egg production.

Categories of Agro Industry:

 Village Industries owned and run by rural households with very little
capital investment and a high level of manual labour; products include
pickles, papad, etc.

 [ Small scale industry characterized by medium investment and semi-

automation; products include edible oil, rice mills, etc.

 [ Large scale industry involving large investment and a high level of

automation; products include sugar, jute, cotton mills, etc.
The development of agro-based industries commenced during pre-
independence days. Cotton mills, sugar mills, jute mills were fostered in the
corporate sector. During the post-Independence days, with a view to

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rendering more employment and using local resources, small scale and village
industries were favored.
The increasing environmental concerns will give further stimulus to agro
based industries. Jute and cotton bags, which have begun to be replaced by
plastic bags, have made a comeback. It is the right time to engage in mass
production of low cost jute/cotton bags to replace plastic bags
The agro industry helps in processing agricultural products such as field
crops, tree crops, livestock and fisheries and converting them to edible and
other usable forms. The private sector is yet to actualize the full potential of
the agro industry. The global market is mammoth for sugar, coffee, tea and
processed foods such as sauce, jelly, honey, etc. The market for processed
meat, spices and fruits is equally gigantic. Only with mass production coupled
with modern technology and intensive marketing can the domestic market as
well as the export market be exploited to the fullest extent. It is therefore
imperative that food manufacturers understand changing consumer
preferences, technology, with modernization, innovation and incorporation of
latest trends and technology in the entire food chain as well as agro-
production, the total production capacity of agro products in India and the
world is likely to double by the next decade.
India is the second largest producer of food in the world. Whether it is
canned food, processed food, food grains, dairy products, frozen food, fish,
meat, poultry, the Indian agro industry has a huge potential, the significance
and growth of which will never cease. Sea fishing, aqua culture, milk and
milk products, meat and poultry are some of the agro sectors that have shown
marked growth over the year’s linkages between members of the food supply
chains and prevailing policies and business environments to take advantage of
the global market.




Processed Food Segment:
[

The processing level of the agro industry may be at the primary,

secondary or tertiary stage. In the case of hides and skins, India exports
largely semi-processed items whereas in coffee/tea, the exports are mostly in
secondary stage by way of fully processed bulk shipments without branding /
packing. Exports at the tertiary stage mean branding and packaging the
product that are ready for use by the consumer.
A few years ago, companies struggled to sell packaged foods. But now
it is much easier to break into the Indian market because of a younger
population, higher incomes, new technologies and a growing middle class,
estimated at 50 million households. An average Indian spends around 53 per
cent of his/her income on food. The domestic market for processed foods is
not only huge but is growing fast in tandem with the economy. It is estimated
to be worth $90 billion. Processed Food Manufacturing companies are
required to be persistent and must adapt products to the Indian cultural
preferences.
Many big companies like ITC, HLL, and Nestle entered the Indian market
a long time ago and have made a deep penetration in the market. From these
success stories we can learn some lessons in order to capture the higher end
of the local market and get a fair share of the export market. The model is
structured around the following:-

 Large scale investment and adoption of the latest technologies

 Intensive marketing efforts

 Perhaps, a foreign tie-up can be beneficial

 Brand name.
(A) BACKGROUND:

 India – one of world’s leading producers of oil seeds (9.3%) and oil




 Technology Mission on oilseeds set up in 1996

 Oilseeds have support price mechanisms

 India – second largest importer of edible oils (2 million MT)

 Vanaspati – a substitute for ghee, formed by hydrogenation of crude

vegetable oil.

 Free pricing in Vanaspathi since 1989; de-licensed in 1992

 Oil season – November to October

(B) Major Players
EDIBLE OILS VANASPATHI
National Dairy Development Board Hindustan Lever
(Anand) (Mumbai)
ITC Agro-Tech (Secunderabad) Wipro (Bangalore)
Marico Industries (Mumbai) Rasoi (Calcutta)
Ahed Mills (Mumbai) Avi Industries (Mumbai)
(C) Industry Market Structure

 Highly fragmented industry

 Over 600 oil extraction units, 166 vanaspathi manufacturing units

- Only 10 edible oil units and 8 vanaspathi units have national reach

 Over 50% of the units – sick or underutilized due to surplus capacity

 Idle capacities among these units due to shortage in feedstock supply

 Major oil brands – Sun drop Dhara, Saffola, Sweekar, Postman

 Vanaspathi brands - Dalda Rath




(D) Capacities:
Installed Capacity and Production
Installed Capacities and Production – in MT per year
Vanaspathi Edible Oils
Capacity 2,720,000 30,368,000
Productions 990,534 6,250,000
Utilization 36% 21%

Key Inputs, Technology Inputs

Vanaspathi - Minor (solvent extracted) edible oils – Sunflower oil,
Soyabean Oil, Ricebran Oil.
Edible Oils - Oilseeds such as Groundnut, Sesame, Mustard, Sunflower and
oil cakes and bran Raw materials comprises 70% of the production cost
Oilseeds – the largest cash crop Poor productivity – 873 Kg/ hectare (global
average of 2000 kg/ hectare). Though oilseeds have 14.5% share in gross
cropped area, only 25% of it is under assured irrigation.
Technology: Refining technology freely available indigenously
(E) Key success factors:

 Branding essential for success (Vanaspathi – Dalda, Oils – Sundrop)

 Better distribution network to improve reach

 Efficiency in operation – to become price competent and withstand

overseas competition

 Proposed Future trading in edible oils will help curtail price volatility
and lend knowledge – based assistance to farmers of eliminate unofficial
markets

 Free imports, low import duties and slump in global prices – lead to
‘dumping’




 Domestic industries of edible oils and vanaspathi affected – low
realization and idle capacities in oil and vanaspathi industries Business
Production slippages have also forced imports Concerns Excessive
(cheap) imports of oilseeds – led to Unremunerative prices, locally

 Increasing health awareness – impact of oils and vanaspathi usage in

individual’s cholesterol levels This industry is a high volume, medium
growth sector characterized by excess / idle capacities owing to in
efficient operations. Imports have been influencing prospects, leading to
domestic industry crisis.




 CHAPTER-IV
About CAPOL:
CAPOL is an oil producing Company at Jandrapet near Chirala. It has
acquired much importance at Prakasam District in A.P. This is because of
extensive cultivation of cotton by the farmers. Cottonseed is separated from
the cotton Kappas in Cotton Ginning Mills and it would be sold to the
Manufacturing Industries/Oil Companies for manufacturing of various by
products like cottonseed hulls, soap stock, animal feed, lint etc. Further, the
products of CAPOL like de-oiled cake are also exported to Japan, Thailand,
Malaysia, West Germany, Switzerland etc., Therefore the study on marketing
mix of the CAPOL has assumed a greater significance in recent times.
The success of any organization depends mainly of three functions of
the management namely production, finance and marketing. Selling has
predominant importance in marketing procedure.
Cottonseed crushing industry is one of the Agro based industries.
Cottonseed is used in the manufacturing of edible oils, cakes, liner, hulls and
oil. India is the third largest edible oil based economy in the world after
United States and China. India accounts 9.7% to the global oil seed
production. The main production of this industry is edible oil.
Most of the people habituate to use groundnut oil for cooking purpose.
To meet the competition CAPOL is manufacturing cottonseed oil at a lower
price than groundnut oil. Thus it underlines the importance of marketing
activities of CAPOL, Chirala.
CAPOL has been located in Jandrapet village at Chirala and are
measuring across 23.68 acres. The plot has acquired from the Government of
A.P on the basis of 9 years lease. The sight is favorably located in respect of
all facilities.




 This is registered in 12th Dec, 1975 and Commencement of business
was started from 5th Jan, 1976. This CAPOL has made a joint venture with
APIDC and signed on 1st Feb, 1976 CAPOL got the license in 13th Aug, 1975
and it is transferred to 13th Feb, 1976.

Objectives of the CAPOL:

Following are the objectives of the company:

 To acquire, promote, establish and carry on business of manufactories

oils from cottonseeds. Castor linseed, sunflower, Rice bran and other
type of edible and non crushing solvent extraction, chemical or any other
process and to utilize, sell the oils and cakes to be produced or acquired
for edible purpose of in any type or processing i.e., ordinary crushing
solvent extraction, chemical or any other and to utilize sell the oils cakes
to be produced or acquired for edible purpose or in any industry in the
manufactured of nutrition tools, soaps, cattle fed, manure, fatty acids,
perfumes, chemical or any other and to utilize sell the oils cakes to be
produced or acquired for edible purpose or in any industry in the
manufactured of nutrition tools, soaps, cattle fed, manure, fatty acids,
perfumes, chemical and other products in which such oils, cakes are
utilized.

 To erect, take on lease or otherwise acquire establish plantation and

other lands, or free hold, leasehold, or the other tenure and in particular
lands producing or likely to produce, cotton seeds and other seeds and
also grants concession claims, licenses and authorities of any description
over any such lands.

 To carry on in India or every where in any part of the world the business
of spinning weaving of manufacturing or dealing in cotton or other
fibrous substances, the preparations, dyeing or coloring of any of




 substances, the preparations, the pressing of sand otherwise dealing with
cotton seed and extraction of oil and other such products. There fourth
refining and treating of such products and subjects them to further
processor of manufacture.

 To act as stockiest, a commission agent, representatives or agents,

selling and purchasing agents, distracters, brokers of edible oils. Since
neither organizational requirements nor individual attitude and abilities
are ever constant. Individual employee careers must be of concern to
organizations and mangers in order that humal1 resources may be
developed to meet constantly changing environmental conditions. A
career is a sequence of separate but related work activities that provides
continuity, order, and meaning to a person's life. It is shaped by a myriad
of factors including heredity, culture, parents, schooling, age level,
family circle, and actual experiences in one or more organizations. An
effective career development program provides complete information
concerning career opportunities within the organization. The major
ingredient is that of aligning individual careers with career opportunities
through a continuing program of training, education, transfer, and
advancement. Major current problems

 To manufacture and deal in all kinds of plant machinery apparatus tools

utensils, materials and things necessary or convenient for carrying on
any of the main objects of the company.

 To buy, sell, manufacture, plant, prepare, treat, alter, exchange, hire, let
on hire, import, export dispose and or deal in all kinds of articles and
things which may be required for the purpose of any of the business
which the company is expressly or by implication authorized by this
memorandum at carry on.




 To establish, appoint, regulate and discontinue offices, agents,
representatives, distributors or retailers in all such places as the company
may from time to time determine for carrying out all or any of the
company’s objects and to acts agents for the other.

Market Competitors of CAPOL:

The following cotton seeds processors are the major competitors to
CAPOL
1. The Andhra Sugars Ltd, Pericherla.
2. G.P. Industries ltd, Timmapuram.
3. Dhanalakshmi Cotton & Rice Mills Ltd., Dokiparru.
4. Kallern Agro Products & Oils Ltd., Kokiparru.
5. Sri Srinivasa Cotton & Oils Ltd., Pedanandipadu.
6. BGIT Oils Industries – Pericherla.
(Bharat General Textiles Industries)
A part from the above said competitors there are some other oil
processors in Andhra Pradesh.
1. ATR Oils Industries Ltd., -Adoni.
2. Sri Venkata Narasimha Solvent Oils Ltd., -Warangal.
3. Srba Agro Industries - Raningavaram.
4. Om-Oil Agro Industries – Tadepalli.
Through the company is facing competition from the above set
competitors, it has good market for its finished products in the market the
competitor is depending upon the quality and availability of goods, said the
competition through around the millers.
After the employee has been recruited, selected, and inducted, he or
she must next be developed to better fit the job and the organization. No one
is a perfect fit at the time of hiring, and some training and education must
take place.




 Development should include both training to increase skill in
performing a specific job and education to increase general knowledge and
understanding of our total environment.
There are two broad groups of individuals to be trained, operatives
and managers. The four basic systems of operative training are

1. On-the-job training,

2. Vestibule schools,

3. Apprenticeship programs,

4. Special courses.
Effective operative training should increase productivity, reduce costs,
heighten morale, and promote organizational stability and flexibility.
With the more complex nature of the executive job, manager
development involves both training and education. Decision-making skills ate
enhanced through business games, case studies and in-basket exercises.
Interpersonal skills can be promoted through role-playing, behavior
modeling, sensitivity training, transactional analysis, and structured insight.
Job knowledge can be acquired through experience, coaching, and understudy
systems, while organizational knowledge can be developed through position
rotation and multiple management. In addition, one's general educational
background can be developed through special courses, meetings, and a
reading program, while specific individual. Deficiencies can be addressed
through special projects and committee assignments.
Organizational development is an intervention strategy where by the
general environment is altered to emphasize collaboration, competence,
confrontation, trust, candor, and support. Particular intervention technique
would include team development processes, survey feedback, and inter group
confrontation sessions.




 Despite the multiplicity and complex nature of many training and
educational program most development occurs on the job. But such
development is slowed and less effective if the employee is not systematically
appraised and fed back information concerning her or his quality of
performance. All employees are appraised on their job perforn1ance in some
manner or another. In general, it can be said that the choice lies among three
possible approaches:
A casual, unsystematic, and often haphazard appraisal the traditional
and highly systematic measurement of (a) employee characteristics, (b)
employee contributions, or (c) both.

Mutual goal setting through a Management by Objectives (MBO)

Though the casual approach is perhaps the most commonly used,
various studies have revealed an increase in the number of firms choosing
some formal type of appraisal. One-third of the firms having programs
reported utilization of the most recent innovation, Management by
Objectives.
There are a number of different types of systems for measuring. The
excellence of employee performance. Some of the traditional performance
appraisal systems are

1. Ranking

2. Person-to-person comparison

3. Grading

4. Graphic scales

5. Checklists

6. Forced-choice description

7. Behaviorally anchored rating scales




 8. Expectation scales (BES)

9. Observation scales (BOS)

10.Essay

11.360 degree observation

Most important than the rating form or method is the quality of the
rater. In most situations, the rater is the immediate superior of the person to
be rated. Higher management, thereby maintaining hierarchical control over
the appraisal process, often reviews supervisor ratings. If more involvement is
deemed desirable, the appraisal process can be undertaken by a group of
raters. Members of the group can be superiors, peers, and subordinates.
Sometimes the management allow the subordinates to rate themselves.
The most frequent rating schedules are semiannual and annual. New
employees are rated more frequently than older ones.
Management by Objectives is far more than just an appraisal process.
To many, it is a fundan1ental way of managing, in which periodic appraisal is
but a part. Orgal1izations are composed of a multitude of people, performing
various and specialized activities, supposedly thereby contributing to basic
organizational objectives. Central to MBO is a joint and mutual
establishment' of end results for individual key personnel. Equally essential is
periodic joint appraisal when assessments are made concerning degrees of
accomplishment. When organizational activities are closely interlocking, it is
recommended that team or group goal establishment precede the
identification of individual responsibilities and goals.
Modem personnel management must look beyond the present
assignn1ent n career mal1agement would include dealing with the platitude
employee and recruiting and utilizing dual-career couples.
The low-ceiling career provides an unusual challenge in alignment of
human needs and organizational requirements. Perhaps the major factor in the



management of low ceiling careers is that of seniority. Precision of
measurement of seniority calls for a multitude rules governing techniques of
accumulation, special treatment of protected groups, and units (occupation,
department, company) in which it can be accredited to the person.
In making the many necessary personnel decisions in an organization,
seniority can be mixed with ability in various ways; for example, when ability
is equal, seniority governs. In any event, career development requires proper
recognition of employee increase in experience, seniority, skills, and abilities.
The success of any organization depends mainly of three functions of
the management namely production, finance and marketing. Selling has
predominant importance in marketing procedure.
Cottonseed crushing industry is one of the Agro based industries.
Cottonseed is used in the manufacturing of edible oils, cakes, liner, hulls and
oil. India is the third largest edible oil based economy in the world after
UNITED States and China. India accounts 9.7% to the global oil seed
production. The main production of this industry is edible oil.
Most of the people use groundnut oil for cooking purpose. To meet
the competition CAPOL is manufacturing cottonseed oil at a lower price than
groundnut oil. This itself underlines the importance of marketing activities of
CAPOL, Chirala.
CAPOL has been located in Jandrapet village at Chirala and are
measuring across 23.68 acres. The plot has acquired from the Government of
A.P on the basis of 9 years lease. The sight is favorably located in respect of
all facilities.
This is registered in 12th Dec, 1975 and Commencement of business
was started from 5th Jan, 1976. This CAPOL has made a joint venture with
APIDC and signed on 1st Feb, 1976 CAPOL got the license in 13th Aug,
1975 and it is transferred to 13th Feb, 1976.




 Personnel management can be defined as the management of
personnel at work. It has been differently defined by different authorities. the
gist of all the definitions quoted above is that the personnel management is
the since of planning, organizing, and controlling the various operative
functions of procuring, developing, maintaining and utilizing the labour force
for the purpose of contributing towards the accomplishment of the major goal
of the organization.

 General Manager



Personnel Officer Security Officer


Sr. Clerks Head Guards

 Jr. Clerks Security Guards

The Personnel Officer is directly responsible to the General Manager.
He will directly, issues orders to his subordinates, The Personnel Officer look
after the entire personnel department to the company.
There are one section in-charge under control of Personnel Officer .He
is responsible for Time Office and Weigh Bridge. There are three Assistants
under the control of Personnel Officer. One will be leading the public
relations, Liaison with Departments and submission of statutory Returns and
making Statutory Payments i.e. P.F, E.S.I etc in every month and year and
keep all the records including Statutory records. One will be responsible for
preparation of payments to Workers and Staff with the help of Man Power
and Attendance .and another will be looking the attendance, and workers
welfare activities.




 Security officer is in charge of watch and time keeping department. He
is responsible for security of factory.

Awards:
CAPOL was awarded prized for best stalls in 1978. CAPOL received
prose as “Best Exporter in India” in 1979 in CDs extractions and cakes from
Union Minister, Government of India. Among oils mills CAPOL stood first
in safety competition and received prize from chief inspector of factors,
Andhra Pradesh.
For the year 1993-1994, “Council for Industrial Trader and
Development India” selected company for its quality and productivity and
also received “Gold Udyog Patra” awarded through Sri.Pranab Mukarjee,
honorable union Minister and deputy chairman for planning commissions.
On this occasion M.D. facilitated at Rashtrapathi Bhavan by Honorable
President of India, Dr. Shankar Dayal Sarma.
The company also received awards from all cottonseed crushers
association for being the 3rd highest exporter and 2nd domestic seller of
cottonseed for the year 1992-1993. The company has received an award from
All India Cottonseed Crusher’s Association for being the highest exporter and
highest domestic seller of cottonseed extractions for the year 1993-1994. As
in the past, the industrial relations remained cardinal during the year under
reviews the directors also wish to informed that the company has been
awarded “MAY DAY COMMAN DATION CERTIFICATE” by
Government of Andhra Pradesh for its continuous hormones relation with its
employers. In addition to this, Workers Trade Union of the company is also
awarded “Best Trade Union” by the Government of AP for this best relation
with their best relations with the management for the year 1995.




Organizational Structure:
The CAPOL is organized by a board of Directors. Under the board of
directors there is a chairman. The chairman controls the Managing Directors.
There are General Manager and Production Manager under the control of the
Managing directors.
The General Manager organizes the overall activities of the company.
He has under his direct control of Finance Department and responsibilities of
the company secretary. Besides he has also under him a Commercial
Department. Under him maintenance engineer, material procurement officer,
packing section in charge, personnel officer and security officer, In Finance
Department there are two responsible persons. They are Assistant Finance
Manager Accounts Officer cum Administrative Officer.
Under the Production Manager the Plant Engineers, In-Charges of
C.S.P. Plant, Oil Mill, Solvent Extraction Plant, Refinery and Laboratory are
working. Plant Engineers functions are to rectify mechanical defects to make
machinery run smoothly and maintain co-operation of the production
activities.
The Personnel Officers is responsible for recruitments of personnel in
organization, functions and ensure the disciplined working of the employees.
The security officer is in-charge of watch and time keeping departments. He
is responsible for security of factory assets and equipment.




 
Board of Directors

 
Managing Directors


 General Manager


Production Marketing Finance
 Manager Manager Manager


Administrative Account Assistant

Officer Officer In-charge
Exports

Clerks Clerks

Board of Directors:

 Sri Maddi Lakshmaiah

 Sri Maddi Ramesh

 Sri Vadlamani Venkata Subramanya Ravi

 Sri Maddi Venkateswara Rao

 Smt Rallabandi Lakshmi Sarada

 Sri Lakkaraju Shyam Prasad




 CHAPTER-V
1. Age-Group wise Distribution of Respondents
Table No. V.1
Age-Group Wise Distribution of Respondents

Age No. of persons Percentage %

18-25 years 10 20

25-35 years 17 34

35-50 years 16 32

50-60 years 7 14

Interpretation:
According into age group wise distribution of respondents table, we
know that 37% of people belong to age group 25-35 among the total
respondents. 32% of people belong to age group 35-50 among the total
respondents. 20% of people belongs to age group 18-25 among the total
respondents and 14% of people to belong to age group 50-60 among the total
respondents.
Graph No. V.1(a)
Age-Group Wise Distribution of Respondents

34
32
35
30
20
Percentage %

25
14
20
15
10
5
0
18-25 years 25-35 years 35-50 years 50-60 years
Age




2. Educational Background of Respondents
Table No. V.2
Educational Background of Respondents

Educational level No. of persons Percentage

Illiterate 5 10
Primary Education 9 18
Higher Education 8 16
Intermediate 5 10
Degree 17 34
Post-graduate 6 12
Interpretation:
According the educational background table we know that 34% of
people belongs to degree level education among that total respondents 18% of
the people belongs to primary education level, 16% of people belongs to
higher educational level, 12%of people belongs to inter level education and
no educational level respectively.
Graph No. V.2(a)
Educational Background of Respondents
18
16
18
14
16 12
14 10
10
Percentage %

12
10
8
6
4
2
0
Illiterate Primary Secondary Intermediate Degree Post-graduate
Education Education

Educational Level




3. Occupation of the Respondents
Table No. V.3
Occupation of Respondents
Occupation No. of persons Percentage %
Daily-wage worker 21 42
Business 7 14
Private Employee 12 24
others 10 20

Interpretation:
According to the occupation of the respondents table, we know that
42% of the people belongs to lab our occupation among the total respondents.
24% of the people belong to employee occupation among the total
respondents. 20% of the people belongs to other occupation and 14% of the
belongs to business occupation among the total respondents.
Graph No. V.3(a)
Occupation of Respondents

42
45
40
35
30 24
Percentage %

20
25
20 14
15
10
5
0
Daily-wage Business Private others
worker Employee
Occupation




4. Income-wise Distribution of the Respondents
Table No. V.4
Income-wise Distribution of Respondents

Income No. of persons Percentage %

Below Rs.5,000 18 36

Rs.5,000-10,000 8 16

Rs.10,000-15,000 14 28

Rs.15,000 and above 10 20

Interpretation:
According through income-wise distribution of respondents table, we
know that 36% of the people belong to monthly income level below Rs.5,000
among the total respondents. 28% of the people belongs to monthly income
level Rs.10,000-15,000 among the total respondents an 20%, 16% of people
belongs to monthly income levels Rs.15,000 and above and Rs.5,000-10,000
respectively.
Graph No. V.4
Income-wise Distribution of Respondents

40 36
35
28
30
Percentage %

25 20
20 16
15
10
5
0
Below Rs.5,000 Rs.5,000-10,000 Rs.10,000-15,000 Rs.15,000 and
above
Income




5. Brand Reference of the Respondents
Table No. V.5
Brand Reference of the Respondents

Brand Name No. of persons percentage

Cotton seed oil 9 18

Soya been oil 4 8

Sunflower oil 16 32

Groundnut oil 9 18

Any other refined oil 12 24

Interpretation:
According to the brand reference table, know that 32% of the people
give preference to sunflower brand among the total respondents. 20% of the
people give preference to any other refined oil among the total respondents.
18% of the people give preference to cotton seed oil, 18% of people give
preference to soya bean oil among the total respondents.
Graph No. V.5(a)
Brand Reference of the Respondents

35 32

30
24
25
Percentage %

18 18
20
15
8
10
5
0
Cotton Soya been Sunflower Groundnut Any other
seed oil oil oil oil refined oil
Brand Name




6. Respondents Opinion on Price
Table No. V.6
Respondents Opinion on Price

Opinion No. of Persons Percentage %

Low 4 8

High 12 24

Reasonable 34 68

Interpretation:
According to opinion on price table, we know that 68% of the people
say reasonable price among the total respondents and 24% of people say high
and 8% of the people say low price among the total respondent.
Graph No. V.6(a)
Respondents Opinion on Price

68

70
60
50
Percentage %

40 24
30
20
8
10
0
Low High Reasonable
Opinion




7. Channel of Product Awareness
Table No. V.7
Channel of Product Awareness

Channel No. of persons Percentage %

Through friends 10 20

Doctors advise 7 14

Through retailers 20 40

others 13 26

Interpretation:
According to channel of product awareness table, we know that 40% of
people know about the product through retailers among the total respondents
26% of people know about the product through others, 20% of people know
about the product through friends and 14% of people know about the product
advice among the total respondents.
Table No. V.7(a)
Channel of Product Awareness

40
40
35
30 26
Percentage %

25 20
20 14
15
10
5
0
Through Doctors Through others
friends advise retailers

Channel




8. Point of Purchase
Table No. V.8
Point of Purchase

Point No. of Persons Percentage %

Retail shop 8 16

General shop 22 44

Super market 12 24

Other shops 8 16

Interpretation:
According to point of purchase table, we know that 44% of people
purchase the product from general shop among the total respondents. 24% of
the people purchase the product from super market and 16% of people
purchase the product from retail shop and other shop respectively among the
total respondents.
Graph No. V.8(a)
Point of Purchase

44
45
40
35
Percentage %

30 24
25
20 16 16
15
10
5
0
Retail shop General shop Super market Other shops
Point of Purchase




9. Opinion about the quality of CAPOL
Table No. V.9
Opinion about the Quality of CAPOL

Opinion about
No. of Persons Percentage %
Quality

Good 24 48

Very Good 14 28

Poor 8 16

Very Poor 4 8

Interpretation:
According to the above table, Opinion of Respondents about the
quality of CAPOL, 48% of respondents are of Good opinion and 14% of
respondents are of very good opinion about the quality of CAPOL. Only 8%
and 4% of the respondents are Poor and Very poor opinion respectively about
the quality of the CAPOL.
Graph No. V.9(a)
Opinion about the Quality of CAPOL

48
50
45
40
35
Percentage %

28
30
25
20 16
15 8
10
5
0
Good Very Good Poor Very Poor
Opinion about Quality

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

10. Opinion about the Taste of CAPOL
Table No. V.10
Opinion about the Taste of CAPOL

Opinion about
No. of Persons Percentage %
Taste

Good 28 56

Very Good 14 28

Poor 5 10

Very Poor 3 6

Interpretation:
According to the above table, Opinion of Respondents about the Taste
of CAPOL, 56 % of respondents are of Good opinion and 14% of respondents
are of very good opinion about the Quality of CAPOL. Only 5% and 3% of
the respondents are Poor and Very poor opinion respectively about the taste
of the CAPOL.
Graph No. V.10(a)
Opinion about the Taste of CAPOL

44
45
40
35
Percentage %

30 24
25
20 16 16
15
10
5
0
Retail shop General shop Super market Other shops
Point of Purchase

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

11. How did you know the Brand Name of CAPOL
Table No. V.11
Know about the Brand Name of CAPOL

Opinion about
knowing the No. of Persons Percentage %
Brand Name

Brand 18 36

Economy 16 32

Shop Display 10 20

Advertisement 6 12

Interpretation:
According to the above table, the majority (36%) of the respondents
know about the Brand Name of CAPOL, 16% of respondents think of the
Economy of CAPOL Brand, 10% of Respondents know about the Brand
name by shop display and only 6% of the respondents know by
Advertisement of the Brand name of CAPOL.
Graph No. V.11(a)
Know about the Brand Name of CAPOL

40 36
32
35
30
Percentage %

25 20
20
12
15
10
5
0
Brand Economy Shop Display Advertisement

Opinion about knowing Brand name

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12. Do you know C.S. Oil?
Table No. V.12
Opinion of knowing about the C.S. Oil

Opinion about
knowing the No. of Persons Percentage %
C.S. Oil

Yes 38 76

No 12 24

Interpretation:
According to the above table, the majority (76%) of the respondents
know about the C.S. Oil and only 24% of the respondents don’t know about
C.S. Oil of CAPOL.
Graph No. V.12(a)
Opinion of knowing about the C.S. Oil

76

80
70
60
Percentage %

50 24
40
30
20
10
0
Yes No

Opinion

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
13. Name of the Oil which you are using for cooking purpose?
Table No. V.13
Oil using for Cooking Purpose

Oil using for

No. of Persons Percentage %
cooking

CAPOL 20 40

Kallam 18 36

G.P. Oil 8 16

Andhra Sugars 4 8

Interpretation:
According to the above table, the majority (40%) of the respondents
use CAPOL oil for cooking purpose, 36% of respondents use Kallam Oil,
only 16% and 8% of respondents use G.P. Oil and Andhra Sugars
respectively.
Graph No. V.13(a)
Oil using for Cooking Purpose

40
40 36
35
30
Percentage %

25
20 16
15
8
10
5
0
CAPOL Kallam G.P. Oil Andhra Sugars
Oil Brands

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
14. Consumption of Oil per month
Table No. V.14
Consumption of Oil per month

Consumption of
No. of Persons Percentage %
oil per month

2 kg 30 60

4 kg 12 24

6 kg 6 12

Above 6 kg 2 4

Interpretation:
According to the above table, the majority (60%) of the respondents
consume 2 kg. of oil per month. 24% of respondents use 4 kg. of oil and 12%
of respondents use 6 kg. of oil per month and only 4% of respondents
consume above 6 kg. of oil per month.
Graph No. V.14(a)
Consumption of Oil per month

60
60

50
Percentage %

40

30 24

20 12
10 4

0
2 kg 4 kg 6 kg Above 6 kg
Consumption of Oil per month

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

15. Purpose of Consuming Oil
Table No. V.15
Purpose of Consuming Oil

Purpose of
No. of Persons Percentage %
Consuming Oil

Taste 6 12

Health 22 44

Curiosity 2 4

Cooking 20 40

Interpretation:
According to the above table, the majority (44%) of the respondents
consume oil for health purpose, 40% of the respondents consume oil for
Cooking purpose, and only 6% and 2% of the respondents consume oil for
Taste and Cooking purpose respectively.
Graph No. V.15(a)
Purpose of Consuming Oil

44
45 40
40
35
Percentage %

30
25
20
12
15
10 4
5
0
Taste Health Curiosity Cooking

Purpose of Consuming Oil

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
16. Respondents opinion about the price
Table No. V.16
Respondents Opinion about the price

Opinion about
No. of Persons Percentage %
price

High 8 16

Fair 32 64

Low 10 20

Interpretation:
According to the above table, the majority (64%) of the respondents are
of the opinion of Fair Price of the Brand CAPOL, 20% of the respondents are
of the opinion of low price and only 8% of the respondents opined that the
price of the Brand CAPOL is High.
Graph No. V.16(a)
Respondents Opinion about the price

64
70
60
50
Percentage%

40
16 20
30
20
10
0
High Fair Low
Opinion about the Price

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
17. Respondents opinion about the availability of C.S. Oil of CAPOL
Table No. V.17
Respondents Opinion about the availability of C.S. Oil

Opinion about
availability of No. of Persons Percentage %
C.S. Oil

Easily available 32 64

Rarely available 18 36

Interpretation:
According to the above table, the majority (64%) of the respondents are
of the opinion that C.S. Oil of CAPOL is easily available and only 36% of the
respondents opined that C.S. Oil of CAPOL is rarely available.
Graph No. V.17(a)
Respondents Opinion about the availability of C.S. Oil

64

70
60 36
50
Percentage %

40
30
20
10
0
Easily available Rarely available
Availability of C.S. Oil


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18. Respondents opinion about the Stickiness of the C.S. Oil of CAPOL
Table No. V.18
Respondents Opinion about the stickiness of C.S. Oil

Opinion about
No. of Persons Percentage %
stickiness of C.S. Oil

Yes 28 56

No 22 44

Interpretation:
According to the above table, the majority (56%) of the respondents are
of the opinion that C.S. Oil of CAPOL is sticky and 44% of the respondents
opined that C.S. Oil of CAPOL is non-sticky.
Graph No. V.18(a)
Respondents Opinion about the stickiness of C.S. Oil

56

60 44

50
Percentage %

40

30

20

10

0
Yes No
Stickiness of the oil

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19. Respondents opinion about the Usage of C.S. Oil of CAPOL
Table No. V.19
Respondents Opinion about the usage of C.S. Oil

Opinion about usage No. of Persons Percentage %

Regularly 38 76

Occasionally 12 24

Interpretation:
According to the above table, the majority (76%) of the respondents
use C.S. Oil regularly and only 24% of the respondents occasionally use C.S.
Oil of CAPOL.
Graph No. V.19(a)
Respondents Opinion about the usage of C.S. Oil

76

80
70
60
Percentage %

50
24
40
30
20
10
0
Regularly Occasionally

Usage of C.S. Oil

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20. Respondents’ opinion feeling of any improvement regarding this oil
usage in their daily cooking.
Table No. V.20
Respondents Opinion about improvement of using in the daily cooking

Opinion about
No. of Persons Percentage %
improvement in usage

Less Cholesterol 20 40

Easy to Digest 16 32

Minimizing Obesity 8 16

Tasty Food 6 12

Interpretation:
According to the above table, the majority (40%) of the respondents are
of the opinion that by using C.S. Oil of CAPOL their Cholesterol is becoming
less and 32% of the respondents are of the opinion that it is easy to digest,
16% of the respondents opined that for minimizing obesity is the reason for
using C.S.Oil and only 6% of the respondents find that the food is tasty by
using C.S. Oil of CAPOL.
Graph No. V.20(a)
Respondents Opinion about improvement of using in the daily cooking
40
40 32
35
30
Percentage %

25 16
20 12
15
10
5
0
Less Easy to Minimizing Tasty Food
Cholesterol Digest Obesity

Improvement after Usage




 CHAPTER - VI
Summary
CAPOL as incorporated as a public limited company to acquired.
Promoted, establish and corn on business of manufacture of oils from cotton
seed, ground nut, sunflower, rice bran and other type of edible and non-edible
oil seeds by any type of processing. The company has entered into a joint
venture promotion agreements with A.P. industrial development corporation
(APLDC). The company has started its commercial production from 25 th June
1998.
The company has established the project at a cost of Rs.170 lakhs out
which Rs.65 lakhs companies of equity and preference share capital. At
present the company has sufficient installed capacities. They are:

1. Cottonseed processing plants and oils mill.

2. Solvent extraction plant.

3. Refinery crude.

4. Animal feed plant.

Findings

 Majority of the respondents are of the age group 25-35 years.

 Majority of the respondents are well educated as their education level is

Degree.

 Majority of the respondents are daily-wage labour.

 Majority of the respondents are of Income group of Below Rs.5000.

 Majority of the respondents i.e., 32% give reference to sunflower brand

of CAPOL.

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

 Majority of the respondents i.e, 68% opined the CAPOL products are
having reasonable prices.

 Majority of the respondents know about the product through retailers

 44% of the respondents purchase the product from general shop. So the
products are easily available.

 Most of the retailers are aware of CAPOL.

 CAPOL is ranked first on availability of Cottonseed oil brand.

 I.T.C. oil was ranked first for quality by most of the retailers.

 I.T.C. brand oil highly priced and G.P. industries are low priced.

 The credit terms are very good in case of CAPOL.

 Retailers give much importance to suggest the CAPOL, because it is

local company and easily available.

 Retailers also feel that the cotton oils increase the human body heat.

 In villages, the customers are prepared to sell the oil by loose like 10ml,
to 250ml.

 Retailers are interested in the brand, which gives the most profit
margins.

 Indirectly customers are depending upon the retailers to select the brand

Suggestions

 To incur work profits ever if there is fluctuations in the production of

cotton oil seeds it is better to produce both cotton seed oil and sunflower
oil simultaneously on the same existing plants.

 The sunflower oil seeds can be procured from Rayalaseema area because
of its high production. The CAPOL and the sunflower seeds from the
local formers by attracting them. In the form of gibing than good quality



 seeds and financial assistance. The company (CAPOL) can sell bulk
amount f sunflower oils through brokers like cottonseed oil and sell it
with 15-kg lines through whole sales. The CAPOL has already good
contact with the whole-sales. So no problems are arisen. By this you can
get the more brand image. By producing sunflower oil you can enter into
retail market like ITC.

 “Extrude” is the new equipment entering in the oil industry” through

their equipment the company can process all types of oil expect rice
bran. It minimizes the consumption of electricity, maximizes the
reduction capacity of the company and also utilizes the full capacity of
the company and also utilizes the full capacity of solvent extraction
plant. If there will be more demand for oils. You can use both “extruder”
and “expeller” and produce a more quality to aware palate the demand.
This yields more projects.

 The CAPOL can produce soya been oil by using “extruder”. The soya
bean prices are cheap as comparative to other seeds. At final production
this yields de-oiled cake. It has much demand in near feature because it
is using new in modern food products. The A.P. government.
Recently given license and various subsidies are given to them.

 The company had four branch offices, locating at Hyderabad, Kakinada,

Guntur and Chirala. For improving the brand image and retail sales, the
CAPOL must open the own shops and can sell the oils on the bass of no
profit no loss principle. The supervision of the CAPOL branch officer.

 The promotional activities must improve sales of any product

advertisements improve the sales, CAPOL is at position that it can not

 Fare more budget on advertisement in local and regional reputed papers.

Demonstrations, display boards, pop material are also improving the




 sales.

 Personal setting is required to meet the competition. Advertisement

should be sponsored through on variety of media to enable everyone to
know about the product. External information about marketing is more
important to the company. Marketing research should conduct in these
aspects. The company has a potential export market with regard to
export. More care should be taken to insure quality, attractive and safe
packing and also competitive prices to withstand international standards.

 Generally, the purchase decision of edible oil is depending on the female

buyers. So CAPOL should attract the target marketers through the free
gifts which are useful to them.

 In the customer point of view, they hoped cotton oil will increase the
body heat. But actually, it is not the case. So CAPOL takes care about
the product knowledge for the customer also cotton oil.


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