Fortune Rice Bran Oil Impact on Different Stakeholders Essay Example

the market. In Nov 2012 Fortune launched its Rice Bran variant with an aggressive promotion campaign. Rice Bran Oil is a very small category in India and has only grown at about 10% in the last 3 years. Inspite of this Fortune decided to enter the category and expand it. Fortune is one of the major competitors of Cargill so it becomes imperative to understand the magnitude of the launch of Fortune Rice bran and analyse the impact on different stakeholders.

The different stakeholders are the Consumers, Retailers, wholesalers and the competitors. The study analysed the impact on each of them. Questionnaires were prepared for the consumers to understand what is the kind of awareness that Fortune Rice Bran has created. How many trials are there and what is the number of retrials. The buyers were then analysed to understand the purchasing and repurchasing criteria of Fortune Rice Bran Oil. Consumers switching from individual brands like Saffola etc were analysed to get an indepth understanding of consumer behaviour.

Questionnaires were prepared for the retailers as well to understand the demand trends of the product and analyse the impact on the competitors in the retail markets. Also the spend was calculated at the retailer level done by Fortune Rice Bran. The study came to a conclusion that Fortune has spent about 32-35 crores on its promotional activities both ATL and BTL. Through its promotions it has been able to create excellent awareness of the product but the trials are still very low. The retrials are high indicating that the product is perceived as a good quality product and is slowly building a loyal consumer

base.

In addition to this Fortune Rice Bran has been able to expand the category in Rice Bran Weak areas but in Rice Bran Strong areas it has not been able to make much of an impact due to the higher penetration of local players and Rice Bran being consumed by the price conscious consumers and not the health conscious.

Company Overview Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services.  Founded in 1865 by William Wallace Cargill headquarter in Minnetonka, Minnesota, U. S. , its privately held company employs 142,000 people in 65 countries. Cargill help customers succeed through collaboration and innovation, and are committed to sharing our global knowledge and experience to help meet economic, environmental and social challenges. Cargill comprises 75 businesses organized around four major segments: 2. 2 Cargill in India Cargill’s operations in India started in 1987. Our business comprises refined oils, food ingredients, wheat flour, grain and oilseeds, sugar, cotton, animal feed and trade and structured finance.

Cargill refine and market leading consumer brands of edible oils such as NatureFresh, Gemini and Sweekar and Rath and Sunflower Vanaspati brands of hydrogenated fats. We also market packaged wheat flour under NatureFresh brand. Cargill employ more than 2,000 employees working in offices and plants across the country and have a network of warehouses and depots. I Edible Oil Industry in India Cargill Foods India processes, refines and markets a wide range of indigenous and imported edible vegetable oils, fats and blends for the food industry.

We serve household consumers with packaged, branded and vitamin-fortified edible oils and vanaspati (hydrogenated fats).

We also offer high quality food ingredients from our global portfolio and deliver a broad array of ingredient solutions to cater to the growing needs of the food manufacturers and food service industry in India. The demand for edible oils in India has shown a steady growth at a CAGR of 4. 3% over the period from 2001 to 2011.

The growth has been driven by improvement in per capita consumption, which in turn is attributable to rising income levels and living standards. However, the current per capita consumption levels of India (at 13. 3 Kg/year for 2009-10) are lower than global averages (24 kg/year).  The Indian edible oils market continues to be underpenetrated and given the positive macro and demographic fundamentals it has a favourable demand growth outlook over the medium-to-long term.

Competitors he market includes some large industry participants like Marico Limited, Cargill India Private Limited, Adani Wilmar Limited, Ruchi Soya Industries Limited and KS Oils Limited, which have a diversified product portfolio; multiple manufacturing units and operate on a pan India basis mainly in the branded segment. ICRA believes that the larger manufacturers by virtue of their scale enjoy certain advantages like access to cheaper working capital credit and savings in cost of production, which make them relatively better positioned to withstand margin pressures and difficult industry conditions.

Cargill has grown to be a global leader in food and agriculture. According to Fortune magazine, if Cargill were a publicly held company, it would rank 41st on the list of the world’s largest companies. Figure 5: Company Financial Cargill performance measures recognize that high performance begins with engaged employees. They

focus our efforts on satisfying customers. They acknowledge our commitment to liveable, sustainable communities.

Project Overview

• Rice Bran as a category is only about 6000 MT in India and is concentrated mainly in the southern parts of the country. It has grown at about 10% in the last 3 Years. Fortune which is the main competitor of Cargill decided to enter the category and expand it.
• It launched its rice bran variant with an aggressive promotion campaign ranging from TVC to print ads, health runs to free health checkups etc.
• As fortune is the main competitor of Cargill, it becomes imperative to understand the magnitude of the launch of Fortune Rice Bran and analyse the impact of it on different stakeholders and the category.

References 

1. http://www. thehindubusinessline. com/companies/adani-wilmar-cooks-plans-to-promote-rice-bran-oil/article4653800. ece
2. http://www. business-standard. com/article/companies/adani-wilmar-to-extend-fortune-oil-brand-to-rice-pulses-112121500023_1. html
3. http://www. superbrandsindia. com/images/brand_pdf/consumer_3rd_edition/Fortune%20Oil. pdf * http://www. adgully. com/masterchef-kitchen-ke-superstar-viewers-get-the-opportunity-to-make-a-fortune-54016. html
4. http://blog. blogadda. com/2013/03/04/healthy-tasty-recipe-contest-fortune-rice-bran-health