CHAPTER-1 INTRODUCTION AND DESIGN OF THE STUDY
INTRODUCTION Marketing is the planning and execution of the production, pricing, promotion, and distribution of goods and services to create exchanges that achieve individual and business objectives. Marketing, in economics is that part of the process of production and exchange that is concerned with the flow of goods and service from producer to consumer .In popular usage; it is defined as the distribution and sale of goods. In the modern business world, marketing function has become an important managerial activity. In the case of Raidco also, this phenomenon is of importance. The study is aimed at analysing the marketing strategy followed by the Raidco to market their different types of products. Curry powder is a mixture of spices of widely varying composition developed by the British during the colonial rule of India as a means of approximately the taste of Indian cuisine at home. In Indian food items, the spices or curry powder play a prominent role and India has a lot of spices which are used for the process of curry powder production .So, the spices or curry powder marketing in India has long experience in this field. Marketing is one of the dynamic fields within the management sector. Marketing is important and necessary because it takes place all around as everyday, has major effect on our lives and is crucial to the survival and success of firms and individuals. The activity of marketing is for the people .successful marketing provides the promise of an improved quality of life, better services and even more a peaceful world. Nowadays there are number of alternative products, so the success of any product depends upon their marketing department and the competitive advantage the company has in terms of quality, quantity, packing design, etc. In short, modern marketing begins with the consumer and ends with the consumer satisfaction and social wellbeing. Under the market driven economy “consumer is the king”
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STATEMENT OF THE PROBLEM Consumer is the centre of attraction of all marketing activities. It is the consumer who determines the growth, prosperity and even the existence of business enterprises. The buying pattern of the products depends on the consumer‟s decision. A market should plan this production and distribution to suit the needs and convenience of consumers. Consumer satisfaction is the key factor for the development and up gradation of the firm. This study reveals about Raidco‟s brand image in comparison to its competitors, the reason for the consumers satisfaction and dissatisfaction for the brand, their taste and expectations. The study will help in providing future prospectus for the development of Raidco. OBJECTIVE OF THE STUDY 1. To study about the satisfaction level of consumers for Raidco‟s curry powder. 2. To find about the expectations of consumers. 3. To arrive at findings and to give suggestions for the improvement of marketing policies based on the findings. SAMPLE DESIGN For the purpose of the study 100 respondents were randomly selected.
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METHODOLOGY Both primary and secondary data were used in this study. The primary data was collected from the consumers of Raidco at Kannur. This data was colleted through a structured questionnaire that was administered by the researcher himself. The secondary data was collected from the various published sources such as company records, brochures, and websites. TOOLS OF DATA
COLLECTION The data was collected from the consumers by means of astructured interview schedule. TOOLS OF ANALYSIS A simple percentage was used for analysing the data. The data collected were tabulated and percentage was calculated. The values were then plotted using bar chart. CHAPTER SCHEME The project report has been presented in the following format. The first chapter deals with the introduction of the study, statement of the problem, objectives, research design, sample design, tools for data collection, and sources of data collection and methodology of the study. The second chapter gives abstracts of literature survey. The third chapter includes industry profile and company profile. The fourth chapter states the analysis and interpretation. The fifth chapter gives the findings, suggestions and conclusions. 3
CHAPTER- 2 LITERATURE SURVEY
Study on Consumer perceived value: a substitute for satisfaction in business markets Department of Animal Science, Texas Agricultural Experiment Station, Texas A&M University on the basis of “Study on Beef consumer satisfaction: cooking method and degree of doneness effects on the top loin steak”. The objective of this research was to evaluate the consumer-controlled factors of cooking method and degree of doneness on top choice, low choice, high select, and low select top lion steaks. The in-home product test was conducted in Chicago, Houston, Philadelphia, and San Francisco. Consumers (n=2,212) evaluated each top lion steak for overall like (OLIKE), tenderness (TEND), juiciness (JUIC), flavour desirability (DEFLAV), and flavour intensity (IFLAV) using 23-point hedonic scales. Respondents in San Francisco and Philadelphia cooked their top lion steaks to lower degrees of doneness than those in Chicago and Houston. Out door grilling was the most common method of cookery for top lion steaks in all cities. Consumers had the highest preference for Top choice steaks (p<.05) and the lowest preference for Low select steaks (p<.05). Consumer OLIKE scores were the highest (p<.50) for steaks cooked to a medium rare or lesser degree of doneness. Consumers preferred (p<.05) medium and well done or more degrees of doneness over medium well. The interaction of city x cooking method was significant for all steak palatability attributes. The differences in consumer preparation techniques among cities present challenges for the beef industry to develop market-specific promotional campaigns.1 1 Journal of Animal Science, Vol 77, Issue 3 637-644 Author-C.L.Lorenzen, T.R.Neely, R.K.Miller, J.D.Tatum, J.W. Wise, J.F.Taylor, M.J.Buyck, J.O.Reagan and J.W.Savell
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An experimental study of consumer effort, expectation and satisfaction: Results of a laboratory experiment indicate that consumer satisfaction with a product is influenced by the effort expended to acquire the product, and the expectations concerning the product. Specifically, the experiment suggests that satisfaction with the product may be higher when consumers expend considerable effort to obtain the product than when they use only modest effort. This finding is opposed to usual notions of marketing efficiency and consumer convenience. The research also suggests that consumer satisfaction is lower when the product meets expectations.2 Study on customer percevied value: A substitute for satisfaction in business markets. The major objectives of the study is; In recent years, there has been a resurgence of the value construct among both marketing researchers and practitioners. Despite a growing body of research, it is still not clear hoe value ineraacts with related marketing construct. Researchers have called for an investigation of the interrelationship betweeen customer satisfaction and customer value to reduce the ambiguities surrounding both concepts.Investigates whether customer value and satisfaction represent two theoritically and emperically distinct concepts. Also addresses whether value is better predictor of behavioral outcomes then satisfaction in a business marketing context. Two alternative models are developed and emperically tested in a cross-Sectional survey with purchasing manager in Germany. 2(Source: Journal of marketing Research, Vol.2, no.3, (aug 1965), Auther: Richard N Cardozo, Assistant professor of Business administration, Harward University) 5
The first model suggest a direct impact of perceived value of the purchasing managers intentions. In second model, perceived vaue is mediated by satisfaction. This research suugests that value and satisfaction can be conceptualised and measured as to distinct, yet complimentary constructs. 3 3(Source: Journal of marketing Research, Vol. 17, no. 2-3,2002,PP, 107118,Author:Eggert A; Ulaga W) 6
CHAPTER-3 INDUSTRY AND COMPANY PROFILE
INDUSTRY PROFILE FOOD INDUSTRY India has abundant availability of available wide variety of cropes, fruits, vegetables, spices, pulses, flowers, livestock and sea foods. Diverse climate conditions and available long coastline have contributed to India‟s position as available leading food producer. The Indian food processing industry is one of the largest industries in India. It is ranked fifth in terms of production, consumption, export, and import prospectus. Since India is one of the major producers worldwide with new reforms ruling the roost it encourages commercialisation. The country food processing market is opening up to available world range of investors across the globe. Food processing covers available spectrum of products sub sector comprising agriculture, horticulture, plantation, animal husbandry and fisheries. India‟s food processing sectors covers fruits and vegetables, meat and poultry, milk and milk products, alchaholic, beverages, fisheries, plantation, grain processing, and other consumption product groups. Indian food industry can be further sub divided in to various food processing sectors such as meat processing, poultry and egg processing, milk and milk products, fish processing, fruit and vegetable processing, consumer food industries. Foreign investment since 1991, when economic liberalisation started stood of Rs.88000crores.Production that have growing demand, especially in the Middle East countries include pickles, chutneys, fruit pulps, canned fruits and vegetables, concentrated pulps and juices and dehydrated vegetables and frozen fruits and vegetables. 7
Since the liberalisation in August 1991 and up till February 2000 proposals for projects of over Rs.53800 crores have been proposed in various segments of the food and agro processing industry. Besides this, government has also approved proposals for joint ventures foreign collaborations, industrial licenses and 100% export oriented units envisaging an environment of Rs.19100 crores during the same period. Out of this foreign investment is overRs.9100 crores. Processed food export where of over Rs13500 crores in 1998-99 and also India exported processed fruits and vegetables worth Rs5240 million in 1997-98.Out of these exports, primary food processing is available major industry with lakhs of rice mills/hullers, flour mills, pulses mills and oil seed mills. Indian industries sales turn over are Rs.140000 crores annually as the start of year 2000. The industries required about Rs.29000 crores in investment over next five years to create necessary infrastructure, expand production facilities and state of the art-technology to match the informational quality and standards. Excellent export prospects, competitive pricing of agricultural products and standards that are internationally comparable has created trade opportunities in the food and agro industry. In fact, in the last decade, India moved from an area of food production. Consequently, analysts are of the opinion that the food processing industry in India is on an assured track of growth and profitability over next five years. As per the recent study in food processing sector , the turnover of the total food mallet is approximately Rs.250000 crores out of which value added food product comprise Rs. 80000 crores. India is one of the world‟s second largest producers of fruits, spices, and vegetables, but hardly 2% of the produce is processed. It grows 22 million tones oil seeds covering most the varieties. Other important plantation products include tea, coffee, coco and cashew. It has large margin product and processing potential with varied resources along the 8041 km long coastline, 28000 km or rivers and brackish water. India is the largest milk producer in the world and about 15% of the total milk production is processed through the organised sector. 8
Another potential processed food product is meat, poultry product. India rank first in world cattle production compared with meat, poultry industry has registered significant growth. India ranks fifth in the world with annual egg production of Rs.1.61 million tones. Grains could emerge an available major export earner for India in coming years. India‟s food grains production is now at around 225-230 million tones. These include rice, jawaer, bajra, maize, wheat grams and spices. In spite of this food industry include so many sectors such as beverages, tea, fisheries etc. MAJOR CHALLENGES FOR THE INDIAN FOOD INDUSTRY Low price elasticity for processed food products. Need for distribution network and cold chain. Backward-forward integration from farm to consumers. Development of marketing channels. Develop the linkage between industries, government institutions. Taxation in line with other nations. Streaming of food laws. Changes in consumer pattern or increase in income are always accompanied by available change in food market. For instance, the proportionate expenditure on staples (grams, cereals, pulses) declined from 45% to 44% in rural India while the figures settled of 32% of the total expenditure on food in urban India. India is one of the worlds major food producers but accounts less than 1.5% of abundant supply of food, the food processing industry is still nascent, only 2% of fruits spices and Vegetables and 15% milk produced and processed. 9
The confederation of Indian Industry (CII) has estimated that the food processing sector cores of investment in ten years and generates employment of 9 million persons. The question of providing financial assistance under the plan scheme for setting up /modernisation in the grain rice/pulses/flour milling sector has been reviewed. The government has formulated and implemented several plan schemes to provide financial assistance for setting up and modernisation of food processing unit, creation of infrastructure, support for research development and human resource development. It was felt that priority should be given to processing and enhancing shelf life of perishable item so as to reduce wastage and encourage value addition in that sector. Considering that rice/pulses/flour are consumed in the processed form only and primarily processing in these sectors adds little to shelf life, wastage control and value addition, it has been decided to discontinue assistance to this sector from financial year 2004-2005. Priority will be given to fruit and vegetables, diary, meat, poultry, fish, bakery, confectionary and consumer goods. In order to boost the food processing industry, the centre has permitted under the income tax Act available deduction of 100% of profit for five years and 50% of profit in the next five years in case new agro processing industries set up to package and preserve fruits and vegetables. Ministry of Indian food processing industries, set up in July 1988, is the main and central agency of the government responsible for developing available strong and vibrant food processing sector with available view to create increased job opportunities in rural areas, enable the farmer to reap benefit from modern technology, create surplus for exports and stimulating demand for processed food. Ministry of food processing industries is also providing financial assistance to all food processing industries. 10
In order to boost the food sector, the government is working on agric-zones and the concept of mega food parks. Such mega food park will come across the country in various cities to attract FDI in the food processing sector. The government approved 105 proposals from foreign industries to set up and food processing industries in India. The ministry has released available total assistance of Rs.105.22 crores to implement food park scheme. It has so far approved 50 food parks for assistance across the country. The centre also plans Rs.100 crores subsidies for mega food processing parks. India is the land of spices producing all varieties worth over Rs.3500 crores amounting to 25%-30% of world production, which is processed for value addition and exports. No Indian meal is considered complete without tangy and datable flavours of Indian spices, locally known as “masalas”. Indian spices famous the world over for their gastronomic value, are also known to possess high medicinal value.
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COMPANY PROFILE RAIDCO The Regional Agro Industrial Cooperative of Kerala Limited was originally registered as district level co-operative society in the name as the Cannannore District Agricultural Development Cooperative Society Limited, NoC361 in the year 1972. It is a well organised business group under co-operative sector of Kerala government. The main intention of formation of this co-operative was to distribute good quality agricultural machineries and implements to the small and marginal farmers who were the beneficiaries of small farmers development agency were always been exploited by the private traders by supplying poor quality agricultural machineries at abnormal rates and without providing after sales service. The subsidiary and other financial benefits provided by government and the financing banks were not really reaching to the hands of poor farmers but were enjoyed by the private traders by adopting all malpractices with the view of making profit illegitimately. All agricultural policies of the government are executed through Raidco. Its registered office is in Kannur. They have 38 business outlets all over the Kerala. Right now Raidco has four factories. Total turn over of the company is 4000 lakhs. Their products vary from agricultural machineries to spice powders, pump sets to packaged drinking water and fruit products to wheat flour. Raidco‟s all branches are mainly to cater the need of farmers in every nook and corner of Kerala. Raidco ensures world class quality in all its products. Raidco aims to achieve its vision of turning in to multifaceted, globally competitive organisation, excelling in its very sphere of activity. 12
REGISTERD OFFICE AND HEADQUARTERS The registered office and head quarters of this co-operative will be situated at Kannur district in the state of Kerala. AREA OF OPERATION The society shall be Federal Cooperative Society as defined in Kerala Co-operative Societies Act 1999. The area of operation of the co-operative shall cover the entire state of Kerala. However , for conduct of sales and marketing of the products manufactured or dealt in by the co-operative and to develop the infrastructure thereof, such as establishing , showroom, service centre, workshops, etc. and appointment of distributors, stockiest, dealers, and carrying and forwarding agents. COMPANY OBJECTIVES The main objectives of the co-operatives are – To purchase or manufacture or hire agricultural machineries and implements inclusive of power tillers, power ploughs, rashers, tractors, pump sets, PVC pipes etc. and either to sell or supply on hire purchase or on hire. To purchase or manufacture industrial machinery, either to sell or supply or hire purchase or on hires. To purchase or manufacture industrial machinery, either to sell or supply or hire purchase basic to cottage or small or medium or large scale industries. To promote, establish, maintain and manage the business relating to the manufacture, purchase and sale of any type of products or products based any type of fruit and vegetable. 13
To act as an agent on behalf of the central and state government co-operation or organisation or any institutions or concern for distribution of agriculture machinery and inputs and other allied articles. To arrange for procurement or the manufacturing and distribution of organic and chemical fertilizers, seeds pesticides etc. To undertake rural electrification programmers, lift irrigation programmers, small hydro power projects etc. and to undertake such workers. BRANCHES AND UNITS OF RAIDCO Raidco is having 38 branches, four production units, and four agricultural workshops cum service centre. RAIDCO CURRY POWDER FACTORY, MAVILAYI Raidco have started a fourth production unit curry powder factory at Mavilayi in Kannur district. The company started on 1-05-2000. Raidco curry powder factory have been setup in assistance with NCDC and state government and one crore as working capital. The main products of this factory are curry powder, masalas, atta, payasam mix etc.and these are marketing under the brand name of “RAIDCO FAMILY”. The company have acquired to a capacity to produce good quality food products. 14
RAIDCO FRUIT PROCESSING UNIT MATTANUR This cooperative has been running a fruit processing unit at Mattanur in Kannur district since 1977 with financial assistance from Kerala Khadi and Village Industries Board .The main products manufactured at the unit were pineapple, pickles, squashes, juice in cans and jams. Now Raidco is marketing ten products from this unit including pineapple products, pickles, jams , and syrups. The main object of this unit is to collect fruit‟s from farmers at a reasonable rate and market them after processing. Along with the existing fruit processing we have started a training centre during 1998-99 with the financial assistance from MFPI, Government of India. The government of India had sanctioned 2.97 lakhs as grant in aid for the training centre. The main aim of this training centre is to make the people aware of opportunities as fruit processing. RAIDCO AGRICUTURAL
WORKSHOP CUM RUBBER ROLLER MANUFACTURING UNITS AND CUSTOM HIRING CENTRE The firm has got four agricultural workshops cum service centre at present. Agricultural workshop cum service centre-kannothumchal,kannur Agricultural workshop cum service centrekollam Agro custom hiring centre-kanchikkode,palakkad Agro custom hiring centre-cheruvathur,kasaragod Raidco agricultural workshop cum service centre was started in year 1985 with the financial from NCDC and government of Kerala. The objectives of this workshop are to repairs and service the agricultural equipments like pump sets, and other equipments at reasonable rate. 15
Raidco started a unit for rubber roller production in 1991. Raidco is getting sufficient order for which is produced in this unit. Due to improved quality and reasonable rate, the rubber rollers manufacturing of good Quality steel furniture and copra under the brand name of RAIDCO. An agro custom hiring centre is established by RAIDCO in Cheruvathur at Kasargod District on June 2002 and Kanchikode at Palakkade District. It was established with the financial assistance of NCDC providing agricultural equipments like pump sets, tillers, sprayers etc on hire reasonable rate. MOBILE WORKSHOPE Three mobile workshops are working under Raidco for providing better services for farmers at their fields with the financial assistance of NCDC. For these purpose three jeeps are arranged with necessary tools and well trained machines. The working of these mobile workshops arranged in such a way to get service of them in the entire District in Kerala. RAIDCO PUMPSET MANUFACTURING UNIT, PALAKKAD Raidco started pump set manufacturing unit in Kanjikode at Palakkad District in 1986. It was established with the financial aid of NCDC and state Government for manufacturing electric motor pump sets Now, Raidco is producing different models of jets and mono block pump sets starting from 0.5 hp to 1.5. Recently we have started the reproduction of open well submersible pump sets in the range of 0.5 hp to 2 hp and now we got a good market for submersible pump sets. Raidco got ISO 9002 certificate for this unit in January 2001. Raidco is the first co-operative which got ISO 9002 certificate. 16
NEW PROJECT OF RAIDCO The Raidco is decided to start the following new project. Honey processing unit at Wayanad district with the financial assistance Kerala Khadhi village industries board. Agricultural equipment manufacturing unit in Kanjikode at Palakkad District with the financial assistance of state government and NCDChave approved a project report of 125 lakhs to establish agricultural equipments manufacturing unit. PROMOTERS A 14 Members Board of directors manages the society. Ten members elected from among institutional members and two directors from among the individual members, the president of Kannur District Co-operative Bank is Ex-officio member of the board, P.K.Narayanan as Chairman who is a veteran co-operator heads the present board. The professional management is headed by Mr.N.L.Suresh as Managing Director of Raidco Kerala Ltd. MEMBERSHIP There are “three” classes of membership as under, 1. A class membership is open to state, district and primary level of co-operative institution, local bodies, government corporative bodies functioning in the area of operation of the co-operative.
2. B class membership is open to any individual who possess the qualifications prescribed under the Kerala co-operative society‟s act and rule to become a member of co-operative society and are residing in the area of operation of the cooperative C class membership is open to central and state government. 17 Class of Number of Shares Amount Table shares Shares value No.3.1
PAID
UP CAPITA L Number of Shares 1006 398 1
A B C
3023 407 32123
500 1000 1000
1511500 40700 37123340
