Vous êtes sur la page 1sur 30

The Edible Oil Industry In India

Click to edit Master subtitle style

A Marketing Research Overview


6/6/12

6 600
Rupees
6/6/12

Key
Billion

Players

Key Highlights

India is the fourth largest producer of major oilseeds One of the biggest importer of oil Palm and soy oils constitute more than 95% of total edible oil imports Sunflowers and soy oils leading the market Highly fragmented industry Gap between domestic production

6/6/12

Key Players

National Dairy Development Board Agro-Tech Marico Industries Adani-Wilmar Group Cargill Foods Ruchi Soya
6/6/12

Indias share in the global oilseed production

10 %

6/6/12

Major oil seeds cultivated in India


Soybean

Cottonseed Groundnut Sunflower Rapeseed Sesame seed Copra


6/6/12

Characteristics

Primarily commodity market- price sensitive Complex network of C&F agents, wholesalers/ stockiest & retailers Oil sold in bulk (tin, HDPE containers) to institutions; in retail packs (PET bottles,cans, jars, pouches) to small customers. Seasonal demand for oils & 6/6/12 vanaspathi- September to November

Recent Trends

Reduction of import duty Customs duty on refined and crude oil (some) has been set to zero State Governments have been authorized to re-impose stock restrictions with respect to edible oils/oilseeds with effect from 7th April, 2008 Subsidizing for the weaker section of society Trend shift towards branded/packaged oil6/6/12 annually growing @20%

Recent Trends

Domestic turnover $10 billion per annum Earns foreign exchange of $90 million per annum

6/6/12

Recent Trends
Domestic Consumption Trend

2011

6/6/12

Growth rates

Current 4 % By 2015 estimated to be 15 CAGR 4.43% (2001-2011)

6/6/12

Consumption

Countrys top 10%-20kgs per capita Bottom 30%- less than 5kgs per capita Strong regional preferences High dependence on imports

6/6/12

Per capita consumption in India 10.6 kgs/ annum


Whereas USA is 48 kgs/ annum

Per capita consumption of edible oil (2010-2011)

6/6/12

Key Success Factors

Raw material sourcing: focus on improving yields, better quality oilseeds, regular supplies Branding essential for success (Vanaspathi Dalda/Oils Sundrop) Better distribution network Efficiency in operation - to become price competent and withstand 6/6/12 overseas competition

Positioning

6/6/12

Marketing Strategies

Rope in tier II and III cities-increased GDP Build brand equity Work on price penetration Creating awareness High nutritional value Emotional connect

6/6/12

Strategic groups

Adani Wilmar Group


6/6/12

Marico Industries, Agrotech foods

video

6/6/12

Buying behavior of customer

6/6/12

Segmentation

6/6/12

Positioning : Dhara
Dhara dhara sudh dhadra

A brand that contributes to overall growth of children and strengthens to perform better Healthy oil

Target

Mothers and young adults +25


6/6/12

Fortune hai light, thoda aur chalega


Positioning AdnaniWilmar-Fortune

Health along with great taste Offered variety of edible oils Builds on moms cooking aspect Target Different brands for different consumer types- Fortune and Raag 6/6/12

Positioning Marico Saffola


Sehat se jeena hai

Initial focus on overall family health Focused on heart Feb 2004 launched new campaigns Target Young adults - WORLD HEART DAY Direct to office initiative- busy 6/6/12 professionals

Positioning-Agrotech foods- Sundrop


Healthy oil for healthy people

Promise of health without the loss of taste Sundrop name chosen to cue category and purity young, modern, premium feel Growth Within 6 months, it became the largest selling refined sunflower oil

6/6/12

6/6/12

6/6/12

Business concerns

Free imports, low import duties and slump in global prices- lead to `dumping low realizationand idlecapacities in oil and vanaspathi industries Production slippages have also forced imports Excessive (cheap) imports of oilseeds - led tounremunerated prices, 6/6/12 locally hence,farmers have shifted

Key market influencers


Monsoons Pest, diseases and environmental issues Prices and demand-supply pattern (India and abroad) Speculation and hoarding Consumption of byproducts Production fluctuations
6/6/12

Future Demand Drivers

Macroeconomic factors: Population growth, per capita income, purchasing power, oilseeds crop Other factors: Prices - domestic/ international, Availability - oil, oilseeds Influence of branded products `health message Growing preference for convenience 6/6/12 foods

6/6/12

Vous aimerez peut-être aussi