A REPORT ON LAUNCHING THE BRANDED WHEAT- VRUNDA

SUBMITTED TOWARDS PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT ACADEMIC SESSION 2010-12

SUBMITTED BY: PAWAN KUMAR SINGH Roll no. BM 010102 SUBMITTED TO: SUBMITTED BY: Prof.Vijendra Dhyani Singh- 010102 Faculty, IMS Ghaziabad 010103 Tripathi- 010104 Prabhjyot Singh010105 Prakhar Sharma010106 Prangna Kacker010107 Pawan Pooja GargPooja

INSTITUTE OF MANAGEMENT STUDIES GHAZIABAD

DECLARATION

This is to certify that We, Pawan Singh, Pooja Garg, Pooja Tripathi, Prabhjyot Singh, Prakhar Sharma and Prangna Kacker student of Post Graduate Diploma in Management (PGDM) 4th Trimester have personally worked on the report titled Launching of the branded wheat-vrunda under the guidance of Prof. Vijendra Dhayani. The data mentioned in this report were obtained during genuine work done and collected by us. Data obtained from Internet, books, journals and magazines have been duly acknowledged. We, here by affirm that the work has been done by us in all its aspects and results reported in this study are genuine and true to best of our knowledge.

CERTIFICATE

This is to certify that We Pawan Singh, Pooja Garg, Pooja Tripathi, Prabhjyot Singh, Prakhar Sharma and Prangna Kacker student of Post Graduate Diploma in Management (PGDM) 4th Trimester have personally worked and have completed their project under my guidance with full honesty and integrity and submitted this project report towards partial fulfillment of Post graduate diploma in management at IMS Ghaziabad.

Prof. Vijendra Dhayani Faculty of IMS Signature Date :

ACKNOWLEDGEMENT The project in this report is an outcome of continual work over a period of a month and intellectual support from various sources. It is therefore almost impossible to express adequately the debt owed to many persons who have been instrumental in imparting this work a successful status. It is however a matter of great pleasure to express our gratitude and appreciation to those who have been contributing to bring about this project. We would like express our gratitude to Prof. Vijendra Dhyani, Faculty IMS, Ghaziabad for his constant encouragement and invaluable critical suggestions given, during this report. We thank the college for giving us all the support and infrastructure required for the successful completion of the project.

INTRODUCTION: This report is on planning and launching of the branded wheat. Under the brand name Vrunda- sudhtha ki pehchaan. This report deals with the strategies of the sales promotion, promotion and costing of the launching and its marketing cost. As its seen that any product which has a brand name is preferred by the customer more than the other one. Brand is something, which creates trust amongst the consumer. Companies selling mass consumer goods and services such as soft drinks, cosmetics, air travel, and athletic shoes and equipment spend a great deal of time trying to establish a superior brand image. Much of brand strength depends on developing a superior product and packaging, ensuring its availability, and backing it with engaging communication and reliable service. In this report we are going to discuss the same thing as how to launch the branded wheat with the help of different marketing tools. Market is the place were customer search for the product, which they need. Traditionally market can be divided into two form firstly urban market and secondly rural market. In urban market it is to be believed that the customer are literate and are very conscious about the brands because of their lifestyles. Unlike urban market, rural market is considered to be price conscious and less formulated

were most of the strategies go blunder even by the prestigious marketing firms. The product, which we are about to launch, is wheat in a fleshy packaging with fleshy designs and fleshy promotions. The customer whom is to be targeted resides both in urban market as well as in rural market. It is tough to launch in both the market but with proper focus and correct promotional strategy it can be done. As we know that India is one of the main wheat producing and consuming countries of the world. It will be not so hard to get the concept to the mind of the customer. The problem would be to seed the idea about the branded wheat in the subconscious of the customer. This report will give the plans and strategies through which the brand can be launched successfully.

Executive Summary: Launching of the new product in the market is not an easy task to carry on. It needs lots of research and strategies. This report will do both in order to launch its brand Vrunda wheat. As it is an universal fact that A brand is a design, name, or identity that is given to a product or service in order to differentiate it from its competitors. Customers know they can expect certain values associated with brands. For example, Rolls-Royce cars are associated with quality, reliability, and prestige, while Wal-Mart built its reputation on homely convenience and low price. Brands are complex assets. One method of managing brands is to view them as having personalities. This concept of brand personality highlights their power. Rolls-Royce is a brand with an almost mythical status: a byword for engineering standards that have long been met or even surpassed by others. Our aim will be to create such a brand which can be emotionally

attached to the people with tag of affordable and accessible. The strategies of costing and different marketing plan are discussed in this and the way through which brand can sustain in the market for the longer period. We have concentrated on the following strategies in the detail form in above report they are: Pricing: A successful and established brand can command a substantial price premium, exceeding the extra cost in terms of production and marketing. This derives from the element of trust that a brand provides. Research in Britain has shown that consumers are often prepared to pay 30 percent extra for a new product from a trusted brand than for one from an unnamed one. Distribution advantages: An established brand can ensure manufacturers get the best distributors. Distributors are more receptive to a new product from an established brand. Brand identity or image reinforces the products appeal. The Rolls- Royce brand has a stately identity and is associated with values of craftsmanship, tradition, and prestige; Volvo has a different brand identity, with associated values of safety, functionality, and family orientation. The brand values of different products reinforce their appeal to specific market segments. Brands help to build customer loyalty, because of the trust and affection they generate. Brands make it easier to introduce new products by exploiting brand equity. Brands provide opportunities to open up new market segments. For example, food manufacturers create sub-brands with diet versions of products. A strong brand enables products to overflow from one geographic market into another. This is particularly the case in industries affected by fashions. Brands can extend the life of a product. As brands combine trust

and respect, careful marketing can exploit these qualities and inject new life into a stagnating product. For example, Danish toy maker Lego produces toys linked with movies. Brands provide a valuable, market-oriented focus around which firms can organize themselves. The brand manager is often directly responsible for what the product offers, as well as how it appears to the customer. Thus it is justified that with the help of brand it will be easy to mark your presence in the market. Hence the strategies discussed here are well versed and are affordable to our concern.

ARTICLE: The below article says where india listed in terms of the production of wheat and how india will affect the market, related to selling of the wheat even in the international market. This article was path shower to us as it was clearly indicating that when market are open to sell more aggressively then why not launch the branded wheat in the market which could be further sold even in the international

market. Pre-Opening Wheat Market Report September wheat was down 2 3/4 cents late in the overnight session. Outside market forces are mixed to neutral overnight. Stiff competition from the Black Sea region, ideas that India will be a more aggressive seller of wheat on the world market due to burdensome supply and a lack of demand from other key importers has helped pressure the market this week. There are some light concerns over high temperatures in Russia, but there are also indications of good yields with the early harvest, and traders believe the heat wave may have come too late to significantly affect production. After the heat in the northern plains of the US this week, traders see the rain relief coming this weekend as a negative force as well. Talk from Russian officials that grain production this year could come in at 85-90 million tonnes from 61 million last year added to the negative tone. Russian wheat is priced well under European and US wheat, and this could limit US exports over the near term. Weekly export sales came in at 344,400 metric tonnes for the current marketing year and 59,100 for the next marketing year for a total of 403,500, which was near the low end of expectations. Old crop sales need to average 471,000 metric tonnes to reach the USDA forecast. South Korea passed on a tender to buy 65,800 tonnes of US wheat, which was seen as a negative development. September wheat closed sharply lower on the session yesterday and had its lowest close since July 12th. Increased concerns that US wheat is not competitive on the world market helped to pressure the market. A sharp break in the US dollar right into the opening helped support a small bounce, but sellers were active early and the market saw a sharp break. Weekly export sales were sluggish, and traders indicated that rain in the forecast for the northern plains after this week's heat is seen as beneficial to crop yield. Iraq is tendering to buy at least 100,000 tonnes. Jordon and

Syria are still tendering for wheat as well. -International Business Times(Dated 22 July)

SITUATION ANALYSIS- A marketing audit: The audit of market environment: The market, customer, competitor and the overall economic and political environment are all favorable for this business. In fact the government have certain freebies and subsidies for this market business. Indian Scenario India has the largest area in the world under wheat. However, in terms of production, we are only the third largest behind USA and China. India produces about 65-75 million tons of wheat a year, which is about 35% of India's total food grain production of 210-212 million tons. Since wheat and rice are grown in separate seasons, they do not compete for area. The major wheat producing states of India are Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan and Bihar. Which together account for around 93% of total production. Wheat is sown during November to January and harvested during March to April. The wheat-marketing season in India is assumed to begin from April every year. Indian wheat is largely soft/medium hard, medium protein, bread wheat. India also produces around 1.5 million tons of durum wheat, mostly in central and western India, which is not segregated and marketed separately.

Government announces Minimum Support Prices (MSP), which is the minimum price at which procurement has to be carried. The total procurement of wheat by Government agencies ranges from 8 to 20 million tons, accounting for only 15-20% of the total production. The support price operation and the Public Distribution Systems (PDS) play a significant role in maintaining reasonable and stable food grain prices in the country for both the producers and consumers. India consumes around 70-72 million tons of wheat a year. Most domestic wheat consumption is in the form of homemade chapatis or rotis using custom milled atta, although usage of branded packaged atta marketed by large companies, is increasing in cities. There are around 200 large flourmills in India, with a milling capacity of around 15 million tons. India exported around 5 million tons subsidized by Government in 2003-04, as a result of surplus stock. However, current Govt. policies are not in favor of exports. Southeast Asia and Gulf countries are major importers of Indian wheat.

MARKETING OBJECTIVE: Objectives are what we want to achieve. A marketing objective concerns the balance between products and their markets. In this scenario marketing objective is related to sell new products into existing market. The following are the objective, which we want to achieve: To increase the sale of the product in India in real terms. To penetrate in the market and to make customer aware of the product. To increase the market share for the product in India.

MARKETING STRATEGIES: Marketing strategies are the means by which marketing objectives will be achieved. It is important to understand what strategy is and how it differs from tactics. Strategies are the broad methods chosen to achieve specific objectives. Marketing strategies depends on four category: 1) Market information. 2) Product information. 3) Pricing strategy. 4) Distribution plan. MARKET INFORMATION: Market size: India consumes 70-75 million tones of wheat through different ways. Through this it can be concluded that the market size of the branded wheat at the initial stage would be of Rs. 550 Cr. It is also witnessed that branded flour are increasing their profitability and sales in the cities thus the main target segment would be urban and semi-urban areas. Characteristics: It is a new market in India. No other branded wheat is exist in the market except flours brand like Annapurna, Pillsbury, etc. It can be a mature market because customers are fed up with the contaminated food products and with degradation of the quality of the branded flour. Relative market: As we have no competitor in the market with the brand, we have to compete only with wholesale market and with the retailer who sell the wheat in the loose form.

PRODUCT INFORMATION: Potential customers: As we are launching branded wheat and it is also the first time so the potential customers can be the lower middle class and the middle class. These customers are mainly located in Punjab, Uttar Pradesh, Maharashtra, and West Bengal. We also have a great advantage that there are hardly any competitors we it is going to happen for the first time. This product will definitely meet the existing needs of the customers, as there is a lack of scarcity of pure wheat, which we are going to provide, and we can also say that the development is very much necessary as there is a huge deficit of good quality wheat. For the proper implementation of the product in the market strong perception of the consumers is highly required. Competitors: Our product has got a huge advantage, as there are no competitors in the market. The size of our company also plays an important part as it is spread in different geographical locations mostly in Punjab, Uttar Pradesh, Maharashtra, and West Bengal. Our pricing pattern is also cheap compared to other varieties of the wheat which are available in the market. DISTRIBUTION PLAN Distribution is also a very important component of Logistics & Supply chain management. Distribution in supply chain management refers to the distribution of a good from one business to another. It can be factory to supplier, supplier to retailer, or retailer to end customer. It is defined as a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is

known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the allimportant end-user. Our distribution channel is going to be situated in different locations as mentioned earlier with main focus on the quality, availability and affordability to the consumers. PRICING STRATEGY: There are many types of pricing strategies and tactics that can be considered. Most can, however, be broadly classified as either1) 2) Skimming policies Penetration policies As we are very new in the market it is nearly impossible for us to enter into the market with skimming pricing policies because it means to enter in the market with high price level and skimming off as much profit as possible. This could be done only if sell the existing product in the existing market. But it is the new product concept to supply the wheat under the brand name Vrunda. Therefore we have to follow the penetration policy as it suggest to set the price low deliberately to encourage more customer to buy the product, which increases the sales and also its market share. The cost of launching this product will be Rs.12/kg. because the minimum support price set by the government has been increased from Rs.630/quintal to Rs.1100/quintal. This has increased the price of the wheat in the loose form in the urban market. The current price of wheat in urban market is Rs.17-20 (approximately) and Rs.12-15 (approximately) in rural market. Thus through this calculation the price that we have marked for the Vrunda wheat is Rs.16/kg. This price will help us to have margin of Rs.2-3, which will help us to give additional discount to retailers who may push the product after getting lured by this offer.

METHODS OF COMMUNICATION: ADVERTISING : We are launching our product, i.e, Vrunda Shudhta ki pehchaan in kirana stores and retail outlets like Big Bazar . So for this purpose we will do the following things for advertisement:

For Kirana store : We will take help of pamplets for giving brief information about the product to the customers .

For Retail Outlets (Big Bazar ) : We are going to take help of space selling , i.e. , we will chose the front area of the food bazar for the visibility of the product . We will also be taking help of personal selling in big bazar for convincing the customers and giving full information about are product.

Some

other

advertising

activities

for

the

launch

of

products : Hoardings in the main areas of the cities. FM radios Print Media , i.e, Advertisement in magazines like : Grah Shobha , Meri Saheli

etc Advertisement in news papers For this purpose we will also take help of Emotional Marketing.

PROMOTIONAL ACTIVITIES: We are launching our product in four states ,Punjab, Haryana, Uttar Pradesh, Madhya Pradesh and we will be focusing on the main cities of these four states for launching our product . For the promotion of the product we will be doing the followings :

Free samples : We will launch our product in three quantity packs , i.e , 5 kg of 80Rs , 10 kg of 160 Rs and 15 kg of 240Rs . So we will be offering 1kg flour with 10 kg bag and 2kg with 15 kg bag.

Contests: As the company are using the benefits of the brand sachin while his record of reaching 100th century. We will also do the same to get some benefits of the issue. We will sign sachin as our celebrity endorsement because of his honest image. This will help our brand to gain some popularity amongst customer.

Public

service

announcements:

We will announce a

program of kisaan which will fund some of the farmers in their entrepreneurial activity. This will help us to remain in the society and will lead us to gain some publicity.

Point of purchase for our product: We will keep our product in special shelf which will have only ours brand. This will help us to be in the lime light of the customer.

Designing an Image Logo: Logo is very important for any brand hence our logo would be

Tag Line- Sudhtha Ki pehchaan

CONCLUSION: Trust is an essential aspect of business, notably when leading people, selling to customers, or building the long-term reputation and value of an enterprise. Trust is easily taken for granted, hard to define, and easy to undermine or destroy. Thus this trust could be develop by attracting customers and retaining them by maintaining good relation and by attaining excellence in our product quality. The brand Vrunda with the tag line of Sudhtha ki pehchaan attains all the attributes after applying the above said promotional strategies. It is expected that not the very move would be right towards achieving excellence but with proper care taken during

promotions the trust can be built easily which will last long. We know that trust matters in the business, therefore it will be our concern to build strong bonding with end customer and supply them and fulfill their needs with our qualitative product.