OLIVE OIL

WHOLESALERS

2011
SUBMITTED TO

Ms. Preeti Rajpal Singh

BBS II-C

MAHIMA SHARMA MANISHA GOEL NEHA SINGHAL NITESH CHAUDHARY

50081 50085 50097 50100

ACKNOWLEDGEMENT

We owe a great many thanks to a great many people who helped and supported us during the project. The project A STUDY OF WHOLESALERS OF OLIVE OIL focuses on understanding the supply chain of the Wholesalers dealing in Olive oil. We have made an effort to study and analyze 5 wholesalers of olive oil in Delhi , focusing mainly on their marketing mix and doing a SWOT analysis for each. Our deepest thanks to our college professor, Ms. Preeti Rajpal Singh , who acted as a constant guide and mentor in the process of drafting of this project. We would also like to acknowledge the assistance and support provided by the proprietors of the companies we approached for the primary information. We would also extend a heartfelt thanks to our family and well wishers without whom this project would have been a distant dream.

CONTENTS

Introduction Case study -1 Shiv Sales Corporation Case study -2 Harish Trading co. Case study -3 D Raj International Case study -4 Alliance Global Case study -5 Manisha International Conclusion

INTRODUCTION
A few years back, an olive oil can wouldnt have found itself placed on display in a general store, neither had it been lying in the shelf of an urban middle class household. Just turn the clock back 5-7 years and the distinguished position it today enjoys at almost every restaurant would have been limited to a few 5 star Italian restaurants. An Indian customer, 10 years back was unaware of olive oil for a simple reason; the Indian seller didnt sell it. Olive oil is made from olive, a fruit produced only in European countries. Till date, it is exported from Europe; Italy, Spain and Tunisia being the main suppliers. The VN Dalmia Group was the first to realize the potential of olive oil industry in India and hence conducted a market research which discovered that 10 million litres of olive oil was imported into India every year. More importantly, the market was growing at 40 per cent annually.

However, 90 per cent is either virgin or extra-virgin which is highly fruity in flavor and has a distinct aroma. Therefore, Indians wouldn't use it for cooking. Also, this left the impression that olive oil was both expensive and exotic. So they decided to import the pomace oil which was lightly flavored and suitable for Indian cooking since it could be deep fried. They named this brand Leonardo which now is one of the highest selling olive oils. In 2004, the market expanded and more brands came in. Also the consumption of extra virgin and virgin olive oil increased, hence leading to increase in wholesaling for olive oil. A lot of business organizations diversified and started wholesaling olive oil. The household demand increased and so did the industrial consumption. The olive oil industry proclaimed as the new big industry allowed for good profit margins and high growth rates, thus making olive

oil wholesaling viable and profitable. Through this project, we have made an effort to study the consumption and growth patterns in olive oil wholesalers market by researching five organizations dealing in olive oil. We contacted five companies who wholesale in olive oil and tried to understand and analyse the growth and potential for this market. The tools used were questionnaires personal visits

The organizations we researched are: SHIV SALES CORPORATION HARISH TRADING COMPANY D RAJ INTERNATIONAL ALLIANCE GLOBAL MANISHA INTERNATIONAL

All these organizations are different in terms of their business philosophy, aims and policies. Also these vary in terms of scale of operations and size of the company. In fact, they supply olive oil to different industries for different purposes.

But the way how each organization started olive oil wholesaling and handles its affairs helped us get a better and broader view of olive oil wholesale operations in India.

SHIV SALES CORPORATION

LOCATION Mayur Vihar CONTACT PERSON Mr. Rajeev Singhal

COMPANY PROFILE
BUSINESS TYPE OWNERSHIP TYPE YEAR OF ESTABLISHMENT NO. OF EMPLOYEES MAJOR CUSTOMERS ANNUAL TURNOVER : : : : : : Importer , Wholesaler Sole Proprietorship 1983 25-30 Cosmetic Industry 36 crores

COMPANY BACKGROUND
Shiv Sales Corporation was established in the year 1983 by Mr. Rajeev Singhal. Its initial line of products included Essential oils , Sesame oil and Perfumes but expanded into Olive oil and Herbal Extracts in the year 2000. The annual sales of the company in the initial years was 36000 INR , whereas the current annual turnover amounts to 36 crores INR . The numbers itself speak about the companys stupendous growth.

CUSTOMERS
Their main customers include some major players of cosmetic industry like Dabur Ranbaxy SBS biotech Ayur Trichup oil Baba Ramdev herbals Shehnaaz Hussain Himalaya Patanjali

COMPETITORS
Their main competitors in the field are Shiva Exports Nordan Aromatics Ultra International

R&D
The company spends a sum of around Rs. 10 lakhs annually on its Research and Development. This department tries to modify the products so as to cater to the needs of different customers and also discover new uses of the existing products.

CSR
The company tries to fulfill its corporate social responsibility by managing the waste generated during transportation, packaging and laboratory work.

GROWTH
According to the proprietor of Shiv Sales Corporation, the growth prospect of the olive oil industry is likely to improve and the demand of the product is increasing at more than double the rate, particularly in metro cities.

THE MARKETING MIX PRODUCT

Shiv Sales Corporation deals in the following product lines-

PRODUCT LINES Perfumes and Fragrances Mint Products Herbal Extracts Natural and Essential Oils

The product OLIVE OIL comes under the category of Natural and Essential oils. The company serves as both the importer and wholesaler of olive oil. The company deals in the following types of Olive oil:

Extra Virgin Olive oil - To be certified for the extra virgin

label, an olive oil should satisfy four criteria: it must be produced by mechanical extraction methods (no chemicals or hot water applied), come only from first cold-pressing, have an oleic acidity level of less than one percent, and must have a perfect taste. Extr a virgin olive oil is prized highly because of its high content of vitamins and nutrients. Also, it is pure and without any additives and is hence used in the cosmetic industry.

Virgin Olive oil - Virgin olive oil also comes from the first pressing, and is also
produced without refining. Its flavour intensity can vary and its taste is less mild than extra virgin olive oil.

Pomace Olive oil - Pomace oil is the lowest grade of olive-based oils. Pomace is that
part of the olive that remains after all the oil and water in it has been removed by pressuring or centrifuging processes. To make pomace oil acceptable to consumers, the producer blends it with virgin olive oil. As with pure olive oil, the producer may vary the proportions between the pomace oil and virgin olive oil; however, the virgin olive oil content is generally quite low. It is suitable for use only in high-heat cooking.

The olive oil supplied by Shiv Sales is mainly in bulk and is used for industrial supply, especially in cosmetics industry for products like massage oil, hair oil, creams, lotions, hair dyes, lipsticks etc.

Following is are the 2 Analysis reports of olive oil and virgin oil which specify the judging criteria of the quality of olive oil in detail.(SCANNED SHEETS collected from the wholesaler) The different types of Olive Oil are tested in the laboratory of the company and submitted to the customers before the actual product is delivered to them so that they can place orders of that particular type which will suit their requirements.

PRICE
Under the technical oriented methods, the company adopts the COST + PRICING method i.e. they charge their customers the cost of the product plus a percentage of their margin. But their prices are also open to influence by competitors prices. The Company studies the competitors policy and price prevalent in foreign market and accordingly set their final prices. They get the bulk quantity of pure olive oil at Rs.210 / kg plus sales tax plus import duty which sums up to around Rs.236 / kg. They keep the margin of 5% on per kg basis. So their price according to present condition is 250 / kg approximately. They charge separately for packaging if the customer demands the product to be delivered in barrels. The charges are Rs.1300 for a new barrel and Rs.80 for a rented one.

DISCOUNTING POLICY
The company does not give discount on bulk purchases. Neither they receive any discount on the quantities they import.

CREDIT POLICY
The company follows a credit system for payments. They allow credit for 30- 60 days. The exact period is decided on the basis of the customers credit worthiness. This facility is not provided to new customers.

PLACE
IMPORT
The company imports Olive Oil from Europe and gulf countries including Spain and Italy. Their main supplier is Texton Technicia from Spain. They ship their products from Europe to Mumbai and then use truck service to transport the goods from Mumbai Port to their warehouses. They hire these truck services from a company called OKARA ROADWAYS.

The goods-in-transit are insured against any loss by a company called United India.

STORAGE AND TRANSPORTATION

They have 5 separate warehouses at different locations for supplying goods to its customers. Four of them are located in different parts of Delhi while 1 is in Haridwar to facilitate easy transportation and reduction in cost of transportation. The transportation cost is not borne by them, they shift it on the customers.

PLACES
The company supplies olive oil to states like Gujarat, Punjab, Rajasthan and Maharashtra. They also export other oils to countries like Europe , USA etc. There is no restriction on exports by the Governmnet except that each company cannot supply more than 10000 litres in a year.

Promotion
BUDGET
The company allocates a sum of around Rs. 30-40 lakhs annually to its marketing expenditure.

TOOLS FOR PROMOTION

1. Exhibitions and Fairs - They attend various exhibition and fairs to promote their company. The main exhibitions attended by them every year are Barcelona exhibition Ahmedabad fair Bangkok fair 2. Online Advertising - They advertise for their company at popular sites like Google, India Mart, Trade India, Kompass, Alibaba etc. They have paid a sum of Rs.20 lakhs annually for Google ads to advertise their products. They even have 2 websites on their name which give the required information to the prospective customers as well as suppliers. These sites are www.shivsalescorporation.com www.natural-essentialoil.com Customers can even order the products directly through their websites.

3. Sales Force - They have around 7-8 on-field employees who approach the prospective
industrial customers to increase the market share.

4. Memberships - Shiv Sales Corporation is also a member of various organizations like Essential Oil association of India- A company must have at least 3 years of existence for being a member of this organization. Chemexcil Perfume and Flavour Association of India Such memberships aid the company in better networking and thus eventually prove to be profitable for the business.

PACKAGING AND LABELLING

PACKAGING - The company transports the oil in barrels or plastic bottles depending on the quantity ordered. Each pack ranges from 200kg to 23 kg. Since olive oil is not very expensive for industrial customers, so they dont supply them in 1 -10 kg packs. The packaging activity is fully outsourced to SHARDA DEALERS.

BARRELS

PLASTIC BOTTLES

LABELLING - If the company directly supplies the product to the customers without changing their original packaging, they do not apply their label. But when they modify the original packaging according to the requirement of customers, they use their own label which have information like- gross weight, net weight, company name , oil type and batch no.

STRENGTH
-Sound marketing base- huge expenditure on marketing. -Efficient Research and Development department -Well equipped with a robust modern infrastructure -Fall in demand in india may be nullified by increase in demand outside India -Associations with prestigious organisations -Equipped with cold storage rooms, facilitating easy storage of bulk products to meet all kinds of demands on time. -Customized packaging -Good understaning of client requirement

WEAKNESS
-No production of olive in india -No extra discount to increase sales -No selling of olive oil to household which form a large cconsumer base in india -More of centralized working with 1 person heading all the department of company with turnover of 36 crore

SWOT
OPPORTUNITIES
-Growing health consicious Indian household
-Diversification (selling pomace olive oil to house holds) -Increasing adoption of market research

THREATS
-Fluctuation in foreign market may affect the working -Growing competiton in the market -Increasing olive prices

HARISH TRADING AND CO.

LOCATION G.B. Road CONTACT PERSON Mr. Subhash Munjal

COMPANY PROFILE
BUSINESS TYPE OWNERSHIP TYPE YEAR OF ESTABLISHMENT NO. OF EMPLOYEES MAJOR CUSTOMERS ANNUAL TURNOVER : : : : : : Wholesaler, trader Sole Proprietorship 1992 11-25 Household and Industrial 70-80 lakhs approximately

COMPANY BACKGROUND
Commenced in 2007 by Mr. Subash Munjal , Harish trading and co. has witnessed an excellent increase in its sales. In the highly competitive market of olive oil , the company has managed to achieve the growth rate of 25% (industry growth rate40%) The company has achieved 3 times increase in its sales. With the annual sales of around 70-80 lakhs approximately, the company is now looking forward to extend its business.

CUSTOMERS
Their main customers include some major players of cosmetic and hotel industry like DSOI PIND BALLUCHI (27 OUTLETS ALL OVER DELHI) VATIKA HOTEL RAJ HANS IN FARIDABAD

GROWTH
According to the proprietor of Harish Trading, the growth prospect of the olive oil industry is likely to improve and the demand of the product is increasing at more than double the rate, particularly in metro cities. The company is trying to expand the business to fully harness the growth potential of this booming industry.

THE MARKETING MIX PRODUCT

Harish Trading Co. deals in the product line of EDIBLE OILS, which include the following:

Mustard Oil Olive Oil Pure Ghee Refined Oil Til Oil Vanaspati Ghee

The company serves as both the wholesaler and trader of olive oil. The company deals in the following types of Olive oil:

Extra Virgin Olive oil - Extra virgin is the highest quality olive oil -- characterized by
"perfect flavor and odor. This is one of the most expensive types of olive oil.

Pure Olive oil -Pure olive oil is obtained from virgin olive oil by refining method which
does not lead to alteration in initial glyceridic structure. It has free acidity of not more than 0.3 gram per 100 gram.

Pomace Olive oil - Pomace olive oil is an organic olive oil derived from pomace, or
olive cake the ground olive fruit pulp left over from first pressing extra virgin olive oil and then pressing virgin olive oil. This is one of the cheapest kind of olive oil and is basically used for industrial purpose.

The olive oil supplied by Harish traders is mainly in bulk and is used for both industrial supply and for household purpose.

PRICE
The company adopts the COMPETITIVE PRICING method i.e. they charge their customers the cost of the product in accordance to prevailing price in the market. The Company studies the competitors policy and price and accordingly set their final prices.

The rates for different types of olive oil have different price level. Pomace is comparatively less expensive then extra virgin.

TYPE OF OIL
POMACE EXTRA VIRGIN

COST PRICE
Rs.225 / kg Rs. 500 / kg

SUPPLIED AT
Rs. 250 / kg Rs. 600 / kg

MRP
Rs. 425 / kg Rs. 850 / kg

Thus, if the company sells directly to households, it can earn a huge profit margin.

DISCOUNTING POLICY
The company set its discount in accordance to the credit worthiness of the customers and its past records and relation with the company.

PLACE
Harish Traders receives supplies from the supplier through their own truck service. And then transport these insured goods to the customers in the packages ranging from 100 grams to 5 kgs. The company supplies olive oil in equal proportion to-

CUSTOMERS

RETAILERS

HOUSEHOLDS

RESTAURANTS

INDUSTRIES

STORAGE
The company has 1 centrally located warehouse to facilitate easy transportation and reduction in cost of transportation.

PLACES
The company supplies olive oil to places like HIMACHAL, PALAMPUR and CHANDIGARH. They basically try to cover the whole of Punjab and Haryana.

HIMACHAL

PALAMPUR

CHANDIGARH

Promotion
BUDGET
The company allocates a sum of around Rs.50000 annually to its marketing expenditure.

TOOLS FOR PROMOTION 1. Online Advertising - They advertise for their company at popular sites like

Yahoo, Just dial etc. They pay a sum of Rs.24000 annually to these sites to advertise their products. They are also a member of Indiamart since 2009.

2.

Sales Force - They have 5 permanent on-field employees who approach the

prospective industrial customers to increase the market share. They even hire sales force on per day basis as and when the situation demands.

PACKAGING AND LABELLING

PACKAGING - The company transports the oil in plastic bottles depending on the quantity ordered. They supply goods in pack of 100 grams , 200 grams , 500 gram , 1 kg and 5 kg depending on the requirement of the customer.

LABELLING - The company directly supplies the product to the customers without changing their original packaging and without applying their label.

STRENGTHS
-Guard against any fluctuation due to supply of olive oil to both household and industry -Competitive price - Centralized warehouse -Insured good -Good transport facility -Very high profiled customers

WEAKNESSES -Supply in small packets adding upto the cost of packaging. -No labeling done, thus reducing the brand visiblity

SWOT
OPPORTUNITIES -Increased demand of olive oil in both the target markets -Expansion( high demand at metro ) -Present high profiled customers , making it likely that new customers will also be of same category THREATS -Growing competition -Increased olive prices

D RAJ INTERNATIONAL
LOCATION Trinagar CONTACT PERSON Mr. Vinod Gupta

COMPANY PROFILE
BUSINESS TYPE OWNERSHIP TYPE YEAR OF ESTABLISHMENT NO. OF EMPLOYEES MAJOR CUSTOMERS ANNUAL TURNOVER : : : : : : Wholesaler Sole Proprietorship 2007 10-12 Retailers 20 lakhs

COMPANY BACKGROUND
In 2008, D Raj international started as an interesting and unexpected diversification to a well established flourishing crafts and handicrafts export company. And such has been its growth ratio that the founder left his original business to focus on oil wholesaling. He says that the growth avenues are innumerable and that even now, the olive oil industry has reached only 3% of its potential.

GROWTH
The growth prospect of the industry is likely to improve. The consumption has increased not only in urban households but also restaurants as metropolitans grow health conscious so demand of the product is likely to improve particularly in metro cities.

COMPETITORS
Their main competitors in the field are Shiva Exports Singh Trading Company Siemen Imports

CUSTOMERS

CUSTOMERS

They have a fixed customer base of 150-200 retailers located in North Delhi. Apart from these, they also supply to industrial customers , which are not fixed and vary with each order

THE MARKETING MIX PRODUCT

PRODUCTS

Olive Oil

Canola Oil

Pickles

Homer called it 'liquid gold'. Medicinal, magical, and fascinating since time immemorial, According to the trader, olive oil has been more than mere food. Olive oil has brought about the high life expectancy and low rates of cardiac disease of the Mediterranean people. Today, it is universally accepted as the healthiest of all edible oils. Adding olive oil to the diet is the easiest change you can make towards a healthier lifestyle.

The company deals in the following types of Olive oil:

Extra Virgin Olive oil - It is the highest-grade olive oil with perfect aroma and
flavor. It is best used for dressing, flavorings and condiments. It results from the first pressing of the olive fruit within 24 hours of harvesting and is comparatively heavy and viscous.

Pure Olive oil - Pure Olive Oil is intermediate grade oil with medium aroma and
flavor. It is best suited for Mediterranean and Continental cooking. In cakes and pastries, it is used both as an ingredient in dough as well as for frying. This is the ideal grade for all types of body massage.

Pomace Olive oil - Pomace oil is the main cooking grade oil. It is a light oil with
neutral taste and flavor and is the most suitable oil for Indian cuisine as it does not change the flavor or taste of any preparation.

They procure oil from different importers and work as a wholesaler as well as a stockiest for them.

BRANDS

Leonardo Olive Oil Brands of Olive Oil

Leonardo Pure Olive Oil Leonardo Pomace Olive Oil

Amor Olive Oil

Olivier Olive Oil

The brands the company supplies are :

COMPANY
DALMIA CONTINENTAL PVT. LTD GS GROUP CRYSTAL IMPORTS

BRAND NAME
LEONARDO OLIVER AMOR

PRICE
Under the technical oriented methods, the company adopts the COST + PRICING method i.e. they charge their customers the cost of the product plus a percentage of their margin. They generally follow the industry conditions and likewise decide the pricing but they also make sure that their profit margins dont fluctuate. . Their profit margins remain around 3-5%. The main cost incurred by the company is on storage and warehousing.

DISCOUNTING POLICY
The company gives discount on bulk purchases. But they dont receive any discount on the quantities they purchase from the importers.

CREDIT POLICY
The company allows a credit system for payments. They allow a credit period of 30- 45 days. The exact period is decided on the basis of the customers credit worthiness. This facility is not provided to new customers.

PLACE
PROCUREMENT
They procure oil from various importers namely GS group, Dalmia Continental Pvt. Ltd. and Crystal Exports. GS group supplies the product namely Olivier olive oil, Dalmia Continental deals in a brand named Leonardo and Crystal Imports supply Amor. Dalmia group imports olive oil from Virginia and other importers also procure from Italian states except for Crystal Imports which imports from Tunisia.

STORAGE AND TRANSPORTATION

They have 2 rented warehouses for supplying goods to the customers in Delhi. They transport oil in barrels and the mode and conveyance for supplying is looked after by the suppliers themselves. The cost is borne by the suppliers too. For transporting oil to the retailers the company uses either trucks or mini trucks according to the quantity ordered. The cost has to be borne by D Raj.

DISTRIBUTION They have a fixed network of 150-200 retailers in North Delhi but their industrial clients vary.

Promotion
BUDGET
The company allocates a sum of around Rs. 1.5 lakhs annually to its marketing expenditure. They have a seasonal marketing budget and during festive season their monthly expenditure goes up to 40, 000-50, 000 INR.

TOOLS FOR PROMOTION 1. Exhibitions and Fairs - They attend various exhibition and fairs to promote their
company. The main exhibitions attended by them every year are AAHAR International food and hospitality fair held at Pragati Maidan, Delhi every year. This program gets a lot of audience from the industry. Other such fairs

2. Sales Force - They have around 2-3 on-field employees who approach the prospective
industrial customers to increase the market share.

3. Networking- They have a well established

network of clients and they expand through networking potential and target customers through their present clientele.

3. Word of mouth Advertising The Company believes that word of mouth advertising
brings in a lot of customers and has made new clients through their existing clientele.

4. Online Advertising - They advertise for their company at popular sites like Google,
India Mart, Trade India, etc. They have paid a sum of Rs.3 lakhs annually for Google ads to advertise their products. Their company shows as a top search on googling key words like olive, d raj.

PACKAGING AND LABELLING

The Company transports the oil in barrels or plastic bottles depending on the quantity ordered. They keep the packaging and labeling unaltered and the packs range from 5l to 250l. Since they supply to retailers, the packaging makes sense and saves a lot of expense.

STRENGTH
-Branded and tested product from well established companies -No expenditure on packaging and labeling -Well established clientele -Two rented warehouses that can be incresed or decreased according to demand. -Flexible pricing policies -Good understanding of marketing and seasonal budgeting

WEAKNESS
-Poor self visibility due to unaltered packaging and labeling -No fixed demands

SWOT
OPPORTUNITIES
-Growing health consicious Indian household
-Diversification -Increasing adoption of market research -Networking

THREATS
-Fluctuation in foreign market may affect the working -Growing competiton in the market -Growing olive oil prices

ALLIANCE GLOBAL
LOCATION Tilak Bazaar CONTACT PERSON Mr.Sangeet Aggarwal

COMPANY PROFILE
BUSINESS TYPE OWNERSHIP TYPE YEAR OF ESTABLISHMENT NO. OF EMPLOYEES MAJOR MARKETS ANNUAL TURNOVER : : : : : : Wholesaler, Exporter, Supplier Partnership 1965 11-25 Middle- East Asia, South- East Asia 30-40 crores

COMPANY BACKGROUND
In the year 1965, in Delhi, a humble beginning was made in the field of trading in Chemicals, Dyes, Solvents, Minerals etc. in Khari Baoli, Delhi, the prime business center in the capital city of India. The name then was J.G. Trading Co. (which was later changed to ALLIANCE GLOBAL), the pioneers in the field of supplying top quality chemicals to various industries. With experience and dedication ALLIANCE GLOBAL has occupied the top slot in the trading of chemicals, dyes etc.

CUSTOMER INDUSTRIES
The main industries that use their products are-

Ceramics Paints Electroplating Leather Paper Textiles Drugs &Pharmaceuticals Construction Laminates Polymers Adhesives Ferrites &Magnets

CUSTOMERS FOR OLIVE OIL

Hotels e.g.
Le-Meridian

Restaurants

THE MARKETING MIX PRODUCT

Alliance global deals in chemicals and food products. It offers only olive oil in the food product range.

PRODUCT LINES Chemicals Olive Oil

The company deals in the following types of Olive oil:

Extra Virgin Olive oil It is taken from the olive tree fruit by physical or
mechanical means which dont cause any alterations in its fine quality. It has not undergone any process apart from crushing, decanting, centrifuging or filtering and is beneficial to health. It has 1% acidity and is the highest quality of olive oil.

Pomace Olive oil - Pomace oil is refined pomace olive oil often blended with
some virgin oil. It is fit for consumption, but may not be described simply as olive oil. It has a more neutral flavor than pure or virgin olive oil, making it unfashionable among connoisseurs; however, it has the same fat composition as regular olive oil, rendering it the same health benefits. It also has a high smoke point, and thus is widely used in restaurants as well as home cooking in some countries.

BRANDS
The company imports various kinds of brands from Italy as mentioned below-

SOLIVERO LEONARDO RALO ATHENA

PRICE
The company adopts a FLEXIBLE PRICING POLICY. It charges different rates for different grades Pomace- 300/kg Extra virgin- 625/kg (margin 150/kg) (margin 200/kg)

DISCOUNTING POLICY
The company allows discount on bulk purchases. On bulk purchases they give discount of 2% or 3% and they also provide cash discount of 2- 3%.

CREDIT POLICY
The company earns a 10% margin. The whole transaction is done through cheques. They do accept installment. But except this, they dont provide any other incentives.

PLACE
IMPORT
They import goods from Europe and gulf countries including Spain and Italy. They procure the oil from Chennai and Delhi ports (procurement from Chennai takes 12-15 days and Delhi procurement is done instantaneously). The frequency of imports is 4-5 times in a month.

STORAGE AND TRANSPORTATION

They have 3 separate warehouses for supplying goods to its customers. They have 1 warehouse in Chennai and 2 in Delhi at Tilak Bazar and Ferozpur. The main transport used by them is truck service or tempo service from Chennai and they receive the material in small consignments.

PLACES
They supply to states like: Haryana Punjab Uttar Pradesh The goods are transported through an intermediary located in Delhi itself.

Promotion
ADVERTISING
They also spend a huge sum in advertising at popular sites like yahoo, India mart Yellow pages, india.com etc. to advertise their product.

NETWORKING
They have a well established network of clients and they expand through networking potential and target customers through their present clientele.

PACKAGING AND LABELLING

They supply goods in small packs or tins depending upon the requirement of the customers. There is no quality mark of purity provided on the label. Material from Chennai comes in containers of 200kg and sometimes they supply in the same amount. Chennai supplier doesnt provide branded oil . The Suppliers from Delhi provide already branded product so there is no need to change the label.

STRENGTH
-Sound marketing base- huge expenditure on marketing. -Well established and known customer base like Meridien -Well equipped with a robust modern infrastructure -Flexible pricing and discount policy -High profit marging -3 Well equipped warehouses -Well diversified business likely to bring in more customers

WEAKNESS
-Comparatively higher prices -Main focus on restaurants and hotels, thus still not realized the larrge retail market

SWOT
OPPORTUNITIES
-Growing health consicious Indian household
-Diversification (selling pomace olive oil to house holds) -Increasing adoption of market research -Demand likely to improve as more resaurants use olive oil

THREATS
-Fluctuation in European ciountries will affect the supply -Growing competition -Increasing olive prices

MANISHA INTERNATIONAL
LOCATION Malviya Nagar CONTACT PERSON Mr.S.N. Bahadur

COMPANY PROFILE
BUSINESS TYPE OWNERSHIP TYPE YEAR OF ESTABLISHMENT NO. OF EMPLOYEES MAJOR CUSTOMERS ANNUAL TURNOVER : : : : : : Importer , Wholesaler Sole Proprietorship 1991 20-25 Household Customers 1 crore

COMPANY BACKGROUND The company Manisha International Private Limited was established in the year 1991. Backed by a strong vendor base, they tend to meet their clients requirements within the stipulated time period and this USP of theirs have made them reach the 1 crore mark as their annual turnover within just a decade. They are one of the leading traders and suppliers of a superior quality range of Olive Oil and Allied products in the Indian subcontinent.

CUSTOMERS
The target audience for this company is basically the household sector, which uses olive oil primarily for cooking and applying on skin and hair. It tends to fulfill the needs of its customer base through its well established network of retailers all across India.

TEAM
They always depend on highly qualified professionals, who are the main strength behind their success and growth. Their efficient workforce comprises of the following professionals:

Chemical engineers Quality controllers Warehousing staff Packaging experts R&D experts Sales & marketing personnel

GROWTH
The growth of the household customers of the olive oil industry is at a fast pace because of the increasing awareness of its health benefits. According to the trader, one of the reasons for an increasing demand of olive oil is that it contains Omega 3 which helps in clearing arteries and lowering the cholesterol.

THE MARKETING MIX PRODUCT

The company , Manisha International Pvt. Ltd. deals only in Olive Oil and its Allied Products. The various types of products offered under this product line are as follows :

PRODUCTS Olive Snacks

Olive Oil

Olives

Vinegar

The company basically deals in the following types of Olive Oil :

Extra Virgin Olive oil These are valued for their superior quality and unmatched
durability. This range is broadly used for dressings, flavoring, condiments and dips.

Pure Olive oil It is the intermediate grade oil with a mild aroma and flavor. The
range is extensively used for light frying as well as for massage.

Pomace Olive oil - Olive pomace oil, is light oil with neutral taste and flavor. These
are valued as they do not affect the flavor and taste of the food. The range is suitable for all types of Indian cooking, such as frying, roasting and grilling.

BRANDS
The company majorly deals in only 2 brands : FRAGATA COLAVITA The various products under these brands are as follows:

FRAGATA

COLAVITA

Fragata Olive Snacks Fragata Olive Oils Fragata Olives

Colavita olive oils Colavita Vinegar Colavita Pasta

PRICE
The company follows the COST+PRICING method as the company imports the products of 2 fixed brands, whose cost is controlled by the company manufacturing them. The extra margin charged by the company as its profit is open to small fluctuations depending on various factors such as Competitors Price, Industry Trend etc.

Where the other cooking mediums are priced at Rs. 70/ litre, the olive oil varieties are imported by the company at Rs. 200- Rs. 800/ litre, depending on the quality of Olive Oil. The individual Price Range of each type of Olive Oil is as follows:

TYPE
Extra Virgin Olive Oil Pure Olive Oil Pomace Olive Oil

PRICE RANGE
Rs. 550-800 / litre Rs. 350-550 / litre Rs. 200-300 / litre

DISCOUNTING POLICY
The company does not receive any discount on bulk quantity imports but it does provide a cash discount of around 2-3% to its distributors in Delhi, Calcutta , Bangalore and Mumbai, if they make advance payment.

PLACE
IMPORT
The company imports Olive Oil mainly from countries like Spain, Greece, and Australia. The import is made via shipments of 60 containers and the frequency per month of the same is 4 times i.e. around 240 containers of Olive Oil are imported in a month.

STORAGE
The company has its own godown in Chandigarh. The olive oil is transported either via trucks, tempos or autos to and from the godowns. It takes about 10 days to reach the godowns.

SPAIN GREECE AUSTRALIA

MUMBAI

CHANDIGARH GODOWN

DELHI BANGALORE CALCUTTA

DISTRIBUTION
The company has a well established network of distributors in major metropolitan cities, which enable them to meet their customers requirements in the stipulated time period. They have the distributors in the following cities :

CITY
MUMBAI BANGALORE CALCUTTA DELHI

NO. OF DISTRIBUTORS
1 1 1 2

The company makes sure that the distributors place the product in different categories of outlets. For e.g. The olive oil with Price range of Rs. 200-300/ litre is made available at all conventional stores. The one with price range of Rs. 350- Rs. 550/ litre is made available at almost all modern retail stores. The oil priced Rs. 550 / litre and above are made available at all gourmet stores catering to high income strata.

Promotion
The company Manisha International Pvt. Ltd. believes in promotion through hardcore networking and word of mouth advertising.

Some other tools they adopt for promotion are as follows: 1. DISTRIBUTION NETWORK The company believes that their well established distribution network self publicizes the company for relevant customers. Their distributors are present in 4 major metropolitans, which help them acquire and increase their customer base through regular visits to existing and new outlets and through word of mouth advertising. 2. ONLINE ADVERTISING- The company does not spend a very huge amount on online advertising by being a part of big brand names like Google and Yahoo. Instead, they believe in expanding their visibility in relatively low priced avenues like indiamart.com, compass.com, tradeindia.com, trade4money.com etc.

PACKAGING AND LABELLING

Since the company procures only branded products and that too only 2 specific brands, Fragata and Colavita, their packaging and labeling department does not have any major role to play. The packaging and labeling of the products that they deliver are already taken care of by the companies that manufacture these products.

STRENGTHS
-High quality, purity and efficacy -Rich vendor base -Well organized team of professionals -Timely delivery of consignments -Competitive market prices -Ethical business practices -Quality controllers (test based onComposition,Purity,Safety,pH value,Shelf life)

WEAKNESSES -Focus only on edible oil -Time between order placement and procurement is high

-Compliance with international standards

SWOT
OPPORTUNITIES
-Diversification( entry into other realted product as wel) -Increasing demand among household (targetmarket ) THREATS -Any fluctuation in edible oil market may hamper the growth. -Growing competiton in the market -Growing olive prices

CONCLUSION
Stop thinking in terms of limitations and start thinking in terms of possibilities Terry Josephson

And thats exactly what VN Dalmia did 10 years back when he decided to bring olive oil to India, a country where then a few knew the name, even fewer used it. The limitations were many- olive oil could be produced only in European countries and hence had to be imported. Also, the prices were too high for an average Indian consumer. Indian cooking required aroma less oils that could be deep fried. Also, there is always an initial hesitation for a new product. But there were possibilities. The growth rate was 40% and expected to increase, the urban Indian household was growing health conscious and the profit margins were huge. Also, industrial use was high. That was the beginning of olive oil wholesaling. Over the past 10 years the industry has grown immensely and avenues are increasing. In the next two years the industry is expected to increase at the growth rates of 150%.

PRODUCT LIFE CYCLE

SALES

TIME
OLIVE OIL

According to the product life cycle, olive oil is still in the initial phase and will enter the growth phase within 2 years. The consumption patterns are rising and the wholesalers are minting money literally as the demand is increasing. The reasons are numerousDemand for European cuisines Health conscious urban family Increasing demand in hospitality sector Rising incomes Increasing awareness about uses of olive oil Increasing demand in cosmetics sector Use for diabetes and cardio-vascular diseases Increased marketing and cultivation initiatives by public and private organizations All the organizations we researched had the same viewpoint about the current state and growth of olive oil industry in India. They said that the industry though constantly growing still has a major obstacle to overcome and that is the price. The price is quite high and the product still is beyond the reach of an average Indian. Also, almost all organizations said that the avenues for growth are yet to be explored especially the retail sector as the brand availability can be greatly improved. Also, small towns and rural areas need to be covered. But all this can happen only when the price can be reduced and local plantation is the only solution. Olives are being planted in Rajasthan and Pune with the help of European companies. Efficient distribution is also needed. For the wholesaling market, the customer base is increasing and this industry is expected to expand substantially and show enormous growth.

To conclude, we would like to say, There are limitations that cant be ignored and have to be overcome in due course of time, but there are possibilities, immense and vast, and possibilities matter the most.