Corporate Profile LT Overseas to LT Foods Ltd: Small beginnings to Global Presence When it all began about 30 years ago, nobody could have even dreamt that the small trading company that came into being as Lalchand Tirathram Mills could one day be on its way to become a leading global food company. 1965, Bhikiwind, in a little village in Amritsar (Punjab, India); Shri Raghunath Arora started a small trading company which grew from being a commissioning agent to a partnership firm by 1977, as Lalchand Tirathram Rice Mills.
1978: Mr. V.K.Arora joined the family business with his father, with a clear vision of taking his company to a global level. In 1980, the company started exporting Premium Rice. This was the first step towards making this vision a reality. Simultaneously, the company decided to face the challenges in domestic markets by setting up a modern, state-of-the-art rice factory in Sonepat, Haryana in 1984. Unorganized players with inconsistent quality products were crowding the market. In this scenario, Mr. V K Arora felt the need to promote branded and packaged products. In line with this vision, the company started the business of milling, processing and marketing of branded basmati rice and manufacturing of rice food products in the domestic and overseas market.
The birth of a Brand Daawat came into being in the 1980’s, and this resulted in a steep vertical ascent of the company’s growth in the 1990’s. Further industry innovations followed with complete streamlining of the manufacturing process, removal of bottlenecks, and total modernization of rice manufacturing plant and machinery and its balancing capacity. Moving ahead of the market, Mr. V.K.Arora introduced 1kg and 5 kg packs of rice in the market, as per consumers’ requirements.
Brand Daawat has over the years taken on the tough competition in the industry, and has managed to create depth as well as width for itself, moving at a pace faster than its rivals. Today, Daawat brand caters to three broad segments – Retail, Institutional and Economy – with specific offerings through a range of sub-brands. A phenomenal 30-fold rise has seen it become a 700 crore company with over 19 brands. The portfolio includes ‘Daawat’, one of the top three Basmati brands bran ds in India and ‘Heritage’, another premium basmati. The company’s product portfolio also includes brown rice, white rice, steamed rice, parboiled rice and organic rice.
The industry recognizes Daawat To increase the acceptability of LT Overseas products globally, the company has taken the lead in implementing industry best manufacturing practices & obtaining internationally acclaimed certifications. certifications. LT Overseas (now LT Foods Ltd) was among the first few in the rice industry to obtain the ISO 9001-2000 certification. Presently LT Food has obtained certifications like HACCP, SQF, BRC, and Organic and EIC.
Footprint across the globe The company has a strong distribution network in all major basmati consuming cities in India with more than a hundred distributors in each state. L T Overseas has also made inroads into more than 50 countries across the globe including markets like USA, Canada, UK , EU, middle east and Africa. Another significant initiative of the company has been in the area of manufacturing and marketing parboiled rice. An ultra modern rice plant began operations at Mandideep near Bhopal in 2007, and this will help the company cater to the huge demand for parboiled rice in the international markets. To strengthen its presence in the global market, L T Overseas acquired Kusha Inc in 2007; Kusha Inc has a 42% share in the US market, giving L T Overseas
a combined share of 52% of the US rice market. This was also the first by an Indian Rice Company.
Today, LT Overseas is ranked among the top 10 food processing companies in Northern India, and among the top 50 companies by Dun and Bradstreet 8th Edition of India’s Top 500 companies 2007.
From a Rs. 700 crore company, L T Overseas is poised to become a Rs. 1500 crore group and a leader in the food products business, in India, and in the International Markets. LT Overseas Ltd is now LT Foods Ltd With company spreading wings all over the globe, acquiring key markets & strategically developing new products, there was a corporate need felt to identify with a wider scope .The company & its present as well as new subsidiaries are also working on new food related projects & products. All this has led to strategic realignment of resources & focus giving birth to a new avatar LT Foods Ltd. Now onwards LT Overseas will be known as LT Foods Ltd. Vision To be a Leading Global Rice Foods Company Mission To deliver value to the customer, be profitable and establish leadership in core markets. The company strives towards diversification and expansion of the product portfolio. To command top of the mind recall with the consumer by ensuring effective brand promotion strategies. Invest in research & development activities so that the company can deliver ever better products and always stay ahead. Focus on increasing global footprint by venturing into newer markets and at the same time forge fruitful alliances with entities operating within the same plane.
Core Values
Promoters
Vijay Kumar Arora
Vijay Kumar Arora is the Chairman and Managing Director of LT Foods Ltd (formerly known as LT Overseas Ltd). He joined LT Overseas in 1978 after completing his Graduation. He has also attended the management development program conducted by the Administrative Staff College, Hyderabad. He has been the promoter director of the company since its
inception. His key responsibilities include international marketing, strategic planning, finance and business development. Ashwani Arora
Ashwani Arora is a whole time Director of LT Foods Ltd. A commerce graduate, he has also attended the management development programme conducted by the Administrative Staff College, Hyderabad. He is a promoter director of the company since its inception and his key responsibilities include marketing and brand promotion in the domestic market. Surinder Arora
Surinder Arora is a whole time director of the Company. He joined the partnership firm (LCTR) and has been associated with the Company since its inception. He has vast experience in procurement, production and plant operations. He is one of the promoters of LT Foods Ltd and has been the director of the company since 2000. His key responsibilities include production and procurement. Mr. Ashok Kumar Arora
Ashok Kumar Arora is a President of Punjab Operation. He is graduate in Arts and has been with this company since 1993. He has 20 year of experience in rice industry and is presently looking after Punjab unit covering all the areas i.e. production, distribution & packaging.
Milestones Since inception LT Foods has believed in delivering the best. And the endeavours have always been met with numerous recognitions and awards. A consistent streak of prized metal has whetted the company's appetite for more. And they stand as a testimony to the fact that the ongoing efforts will only be intensified in the future. New standards will be aimed at. And the bars will be set higher. 2007-08 * Staple Distribution Company launched in domestic market to cater to the demands of modern retail. * State of the art plant set up in the Mandideep, Bhopal (MP.) * Acquired a top US Company, Kusha Inc; Kusha's brand, Royal is among the top 20 US brands: Company's share of the US market goes upto 52%. 2006-07 * Inauguration of Silos Complex * Increase in capacity from 18 MTPH to 27 MTPH 2005-06 * Awarded Udyog Ratna by PHD chamber of commerce and industry presented by Shri Bhupinder Singh Hooda Hon”ble Chief Minister , Haryana for valuable contribution to Economic Development of Haryana 2004-05 * India Star Award from India Institute pf Packaging. * Enhanced the capacity in Bahalgarh unit from 10TPH to 12 TPH , making the owned capacity to 18 MTPN. 2003-04 Award from APEDA for export promotion and quality development of Basmati rice 2002-03 * Received the right to use APEDA certification mark Quality products of India for export * Enhanced the capacity in Bahalgarh unit TPH to 10 TPH , making the total capacity to 16 MTPH 2001-02
* Registered and launched the brand DAAWAT in Canada * Obtained ISO 9000:2000 certification * Obtained HACCP certification of SQF (Safe Quality Food)20000CM for comprehensive food safety and Quality management systems 2000-01 * Started the processing facility at Bahalgharh Unit of 4 TPH * Registered and launched the brand DAAWAT in Australia 1999-2000 * Recognised as Star Trading House by Government of India * Registered and launched the brand DAAWAT in Mauritius Saudi Arabia and New Zealand 1998-99 Took over the business of Lal Chand Tirath Ram Rice Mill having capacity of 6 TPH 1997-98 Awarded APEDA Export award for outstanding contribution to promotion of agricultural and processed food products during the year 1996-97 1995-96 * Certificate of merit was awarded by APEDA for Significant contribution in the export of India long grain rice * Registered the brand DAAWAT in united States of America 1994-95 Set up own milling capacity 1993-94 Converted into a public Limited Company 1990-91 Incorporation of our company as a Private limited company
Products Daawat About Daawat LT Foods Ltd. is one of the country’s leading processor and exporter of packaged rice foods under the flagship brand “DAAWAT”. The brand is among the top players in the domestic branded Basmati Rice markets. . ‘Daawat’brand has been a great success in international markets as well. Quality based procurement, state of the art milling plants, product quality and customer focus are a few things Daawat has always been known for. This ensures that Daawat Basmati rice is just perfect in all aspects of the Basmati Rice with uniformly long grain, pristine white luster and appetizing aroma. Anticipating the needs of the consumers the company offers hygienically packaged nutritious rice in the Super Premium, Premium and Economy category Daawat Select- India’s Authentic Basmati rice (Available in 1Kg, 2Kg, 5Kg, 10Kg and 20Kg packs)
Daawat Authentic Basmati rice; Let its exquisite aroma fill the air while you simmer it to perfection. And your family will be lured to the dining table bound by the spell. Daawat Select Basmati rice is known far and wide for the magic its aroma creates. Fertilized by clean, snow-fed water from Himalayas and processed with the state of the art technology, its uniform, long grains & pristine, white luster never fail to entice.
Daawat Gold Basmati Rice (Available in 1Kg, 5Kg and 10Kg packs)
Daawat Gold Basmati rice royal long grains that are what defines Daawat Gold Basmati rice. It is amazingly white luster, the enchanting aroma and an unforgettable taste. Be it biryani, risotto or your special lemon bhaat, this extra long-grained rice is bound to make everything all the more scrumptious. Fertilised by clean, snow-fed water from the Himalayas and processed extremely hygienically, it is the most refined basmati you’ll ever get.
Daawat Super- India’s Finest Basmati Rice (Available in 1/2 Kg, 1Kg, 5Kg, 10Kg, 20 Kg and 25Kg packs)
Daawat Super Basmati rice - Just have spoonful of this wonderful flavorsome rice and you will know why they say God visits mortals in the form of food. Daawat Super Basmati Rice boasts of the taste that can transform your everyday meal into gourmet’s delight. And to add to it, we take utmost care while processing to retain its tastes and nutritive value. All so that every grain becomes incredibly delectable and every meal, the best you ever had.
Daawat Rozana (Available in 1Kg, 5Kg, 10Kg and 25Kg packs)
Daawat Rozana Basmati rice Celebrate each day with the super economical, super tasty Rozana Basmati Rice. Basmati rice that fits perfectly in your budget. Daawat Rozana with its taste, aroma, long grain and pristine white luster lets you make every meal special. No wonder it is the first choice of every homemaker. Daawat Devaaya Basmati Rice (Available in 1Kg, 5Kg and 20Kg packs)
Daawat Devaaya Basmati rice Nurtured in the sun-kissed fertile plains of Northern India, Daawat Devaaya is polished, graded and passed through colour sorter machine to give it a distinctive pearly texture. Untouched by human hands, Daawat Devaaya has been one of the most popular brands among the masses for its magnificent taste & affordable price. The product has made a special place in all major modern retail outlets.
Daawat Chef’s Secretz Basmati Rice (Available in 10Kg packs)
Daawat Chef’s Secretz Basmati Rice - Nurtured in the sun-kissed fertile plains of Northern India, Daawat Chef’s Secretz Basmati rice is polished, graded and passed through colour sorter machine to give it a distinctive pearly texture. Untouched by human hands, Daawat Chef Secretz has been one of the most popular brands among the institutional customers. As the name suggests it is one of the core ingredients of many popular rice recipes served in many prominent restaurants across India. Daawat Brown Rice (Available in 1/2 Kg and 1Kg packs)
Daawat Brown Rice - ‘Daawat Foods Pvt. Ltd’ has introduced Brown Rice to augment their existing market and consumers both nationally and internationally. The product is available in attractive carton boxes of 1kg and 500 gms . The product is available in many modern and traditional retail stores. The secret of launching Daawat Brown Rice lies in its nutritional value. Brown Rice is the healthier food and is very low in saturated fat but is fiber enriched. It is known to be a food grain that is healthy and nutritious for all the age groups.
The unique patented technology that has increased the shelf life of the ‘Daawat Brown Rice’ to 1 year vis-à-vis 6 month of ordinary Brown Rice. When compared to other ordinary brown rice Daawat Brown Rice not only cooks faster but also makes tastier foods. It can be used in all the white rice dishes like pulavs and biryanis and cooks in the same time as the white rice i.e. 15-18 mins. Daawat Brown Rice also does not require soaking as in ordinary brown basmati rice.
Advertising
Daawat Basmati Rice is a huge favorite across 35 countries.
Great work of art have always been the topic of dinner conversations.
As passionately as you create every dish.
Daawat Select Basmati Rice .
The ingredient of finest recipes and engrossing dinner table conversations.
Great aroma, great test, great texture.
Daawat Brown Rice.
Daawat Gold birayani rice.
Daawat Select Basmati Rice .
Fresh new look, same great taste.
Indian Subsidiaries:Daawat Foods (P) Limited
The wholly owned subsidiary of LT Foods Ltd (formerly known as LT Overseas Ltd) was set up with state of art technology, milling unit in Mandideep, Bhopal, for production of parboiled rice. Rice processed here will cater to the institutions and requirement of Middle East market as well. Your
company has made investment of Rs. 23.50 crores in this subsidiaries. Nature Bio Foods Limited The company recognized that organic food is future of the world and in the same direction, company initiated steps few years back. For the same, the wholly owned subsidiary of the company was incorporated to cater the need of organic market which is approximately a market of 22 billion dollar world wide and growing with the peace of 10%.
Staple Distribution Company Ltd. (www.stapledistribution.com) Looking at the potential and boom in retail business, Staple Distribution Company, a wholly owned subsidiary of the company has been incorporated during the year to play and establish itself as a backend player for Modern retail. LT International Limited LT International Ltd., a subsidiary of the company is engaged in trading of varied merchandise.
Four Ps of Marketing - Product, Price, Promotion, Placement The Four Ps Of Marketing
Marketing has traditionally been segmented into four separate areas called the Four Ps of Marketing. The 4 Ps of marketing are product, price, promotion, and placement:
A formal approach to this customer-focused marketing is known as
SIVA
(Solution, Information, Value, Access). This system is basically the four Ps renamed and reworded to provide a customer focus. The SIVA Model provides a demand/customer centric version alternative to the well-known 4Ps supply side model (product, price, place, promotion) of marketing management.
1.
Product
→
Solution
Promotion
→
Information
Price
→
Value
Placement
→
Access
Product: Product marketing deals with the consumer's needs and
wants and how product specifications can satisfy those needs and wants. Product marketing can deal with a whole array of issues such as product size, color, and look and feel of the packaging. Often, first impressions are important, especially if you are marketing a product that sells on store shelves. You would want your product to stand out or for the consumer to want to choose your product over the others on the shelf.
2.
Price: Price deals with supply and demand, or how much a consumer
is willing to pay for a product or service. It also includes decisions on discounts and special offers. Pricing is not as simple as it might seem. In some situations, a lower price will not necessarily mean that more will be sold as the price level could also influence the perceived quality of a product. For example, affluent consumers may expect a premium product to cost more and, so, may not purchase it if the price is cheap. Pricing often affects the consumer's perception of the attractiveness of a product.
3.
Promotion: Promotion deals with the actual selling, advertising, or
publicity of the product; it entails your communications with your customers and trying to convince or persuade them to purchase your products or services. This could be done through such things as television commercials, magazine ads, direct mailings to residences or businesses, and billboards.
4.
Placement: Placement has to do with the availability of your product.
You want your product to be visible at the precise moment that a consumer is willing to purchase such a product, be it through an actual need or an impulse buy. Products can reach the consumer through multiple ways, including through retail outlets or mail order. Not every consumer shops the same way and product placement is the art of getting the product to the right consumer at the right time.
For any fmcg company to have efficient distribution channel needs to have satisfied intermediaries, so that they hold with company products and provide them to end user. Thus I selected my research objective as:
are as under:
To identify the Marketing Strategy of Daawat Rice.
To know the Consumer Behavior towards product.
To identify the area of service in which company needs to Improve?
To help the Company in designing proper strategies for rural area.
To know the price of the product.
To know the positioning of Daawat Rice in the market.
To know the promotional Strategies.
To know the advertising strategies
Purpose of study: - Descriptive
The study focuses on the satisfaction level for different products. As well as on other parameter's such as Commission, Delivery mechanism, Sales Force, Credit Period. etc.
Degree of research question crystallization: - Exploratory study As per my objective of the research, the research questions would try to find out the current situation in the market regarding the satisfaction level. Moreover, the hypothesis is not pre-defined here, but it would be define during the study. Here research problem is also general.
Method of data collection: - Interrogation & Personal Interview Based on my initial observation, I have prepared a questionnaire to collect the response from retailers and whole sellers as primary data. Versatility of the questionnaire will help to cover almost all related factors impacting the satisfaction of the target sample. Interrogation takes less time than observation and gives information that is more purposeful
Research environment: Field study. Survey is the main part of the study and primary data collection. So that the study will be carried out in field, I have gone to the market and interviewing retailer's and Wholeseller's in the area of Sagar.
Data source: Primary source To satisfy the objective of the research it is necessary to get the response from the respondents, which act as primary source of data. I have collected Primary data by personally surveying Retailer's & Wholeseller's in the sampling area specified.
Approach: Interview (Personal Contact)
Instrument: Questionnaire
Questionnaires Designing:
It is the most crucial part of any market research. I have taken a due care in designing the Questionnaire for my research. I have meet more than 50 retailers during my training period in order to learn the Order taking Mechanism, POP Displays, Competitive Products, Retailers Attitude
towards sales force etc. Even from Area Sales Manager I identified various Parameters to be listed in my questionnaire's have taken utmost care in deciding right question, correct sequence, what should be wording of each & layout of questionnaire as a whole.
Type of Questionnaire: Structured Non Disguised
I have arranged the questions in a specific order to get the facts and the interviewer be asked to response strictly in accordance with a pre-arranged order. The objective of the survey was disclosed every time before getting the response from the respondent .
Type of Question: Close Ended
Number of questions: 50
Sampling Area
:Sagar
Sample Population
: Customer’s, Retailer's and wholesalers of Sagar Area.
Sample Size
: 50
Method Of Data Collection
: Questionnaire
Sampling technique
: Convenience Sampling
LIMITATIONS
Limited Time available for interviewing the respondent. As a result of this it was not possible to gather full information about the respondent.
Some time the problem which I face is language problem for which I have to make them understood.
The time constraint face in my project might have affected the comprehensive of its findings.
Some time the retailers & customer do not respond rightly to the questionnaire.
Sample size was very small as compare to the population of Sagar city.
People did not give full response and they are bias in some personal questions.
QUESTIONNAIRE
Name :
----------------------------------------------
Address:
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Contact No. :
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Q.1 Which Rice Brand do you use? (a) LT Foods (b) KRBL
c) Kohinoor
(d) REI Agro
Q.2 You purchase the above brand because of the? (a) Price
(b) Quality
(c) Packaging (d) Others
Q3. You buy the Daawat Rice on basis of ? (a) On you’re one
(b) Advised buy the friends (c) Advertisement
(d) Demonstration of the Product Q4. Taste of this Rice is? (a) Excellent
(b) Good
c) Better
(d) Same as other
Q5. What is view about packaging? (a) Highly Satisfactory
(b) Satisfactory
(c) Not Satisfactory
Q6. Do you get any, Discount or other schemes while purchasing the products?------------------------------------------------------------------------------------------Q7. Are you aware of any sales promotion schemes?--------------------------------Q8. Why are you using this Brand?
(a) Cheap
(b) Tasty
(c) Brand Image
(d) All
Q9. Offer your suggestion to the dealer? -------------------------------------------------------------------------------------------
DATE: __________
The project report titled by under the guidance and supervision of for the partial fulfillment of the degree of is satisfactory in respect of :- Comments By
1. Contents and presentation of the subject matter 2. Language 3. Embodies the original work of the candidate. 4. Submission within due date
Supervisor
Head of Deptt.
Examiner
Signature of Examiner
Signature of Supervisor
Signature of H.O.D.
I
declare
that
the
project
report
on
“MARKETING
STRATEGIES OF DAAWAT RICE” , in Sagar City is my own work, conduct under the supervision of of MR. ASHISH TIWARI (Lecturer of MBA Deptt., SVNIT) affiliated by Dr. Hari Singh Gour University, Sagar (M.P.). To the best of my knowledge the report does not contain any work which has been submitted for the award of any degree, anywhere.
Signature of the Candidate
HARISH VISHWAKARMA MBA 1st SEM.
I would like to pay my sincere thanks to Dr. Pramesh Gautam Head of the MBA Dept., SVNIT. Sagar for providing me the opportunity of doing the project report. I would to express my deep sense of gratitude to Mr. Ashish Tiwari, Lecturer for his valuable guidance, advises, Cooperation & Constant encouragement during the project preparation. He is very supporting and without his help I would not have completed my project report successfully. I express my heartful thanks to Miss. Preeti Shukla, Miss. Neha Dubey & Mr. Chaitanya Kaushikya and to the staff of SVNIT, Parents and friends for their kind support and suggestion. I am very thankful to retailer and customer whom I had approached for collection of necessary data and who give their valuable time and comments, which were the inputs for my survey.
Date: Place:
Harish Vishwakarma MBA 1 ST Sem.
PREFACE The project report has an objective to get the MBA student familiar with real life business situation and gives an opportunity to the student of understand the theoretical concepts of marketing and finance in practical way.
In today’s world “Consumer is the King” consumer test and preference go alone way in the actual sales of the product. Every research work has to deal with various people in concern organization and each of them have their own opinion and thinking about various topics. The main aim of the survey report was to determine the Marketing Strategies of Daawat Rice in Sagar City. I tried my best to express the report through satisfactional representation, graphs, pie diagrams etc. and it helped me to enhance my knowledge I am extremely happy to place before our esteemed teachers.
