Marketing Management

Institute of Professional Education and Research
Bhopal
MBA – (SEM-2)
Marketing Management
Assignment
on
“Market Segmentation”
Submitted to: Submitted by:
Arjun Murti Sec-3
Group-2
Aditi Sharma
Faizan Khan
Mohit Nagar
Priyanka Joshi
Saffola Edible Oils
INTRODUCTION
Saffola is a health care brand. For the 10 years, Saffola has been
educating Indians on preventive heart care. Saffola has over the
years built an ecosystem which works towards adopting a healthier
lifestyle. It is specifically designed for Indian cooking where oil is
heated to high temperature that leads to the formation of free
radicals. Indian vegetable oil Industry is world’s fourth largest after
USA, China and Brazil.
 It is a brand of Marico Ltd.
 Launched as edible oil in 1960.
 Early 1990s – target consumers are male of 45+ years.
 Despite the difference in taste the brand became the choice for
the group of people as it provides them sense of security.
Saffola vision is to create a Heart Healthy India and it has been
Committed. to the cause of educating and inspiring people of taking
care of their heart.
QUESTIONNAIRE
Q.1 Which brand of Edible Oil do you use for cooking?
Q.2 Which type of Edible oil do you normally use?
Q.3 Which brand of cooking oil do you currently use?
Q.4 Which oil is the Healthiest?
Q.5 Why do you prefer the brand oil ?
Q.6 Which amount of litre of oil preffered the most?
CONCLUSIONS
Survey sujjests that health factor plays a very important role in
selecting the brand. Most of the people change their oil because o
better health.
Majority of the respodents are females and it is noted
that advertisement does not create a need for cooking oil in the
minds of prospects but as the same time, prospects consider
advertising as an important as an important source of information
and most of the people purchase 1 litre to 5 litre package size. They
consume 2-4 litre oil per month.
Most of the people satisfied with the brand of Edible oil which they
use. An average consumption of Edible oil per month is 1.75 litre and
people not effected by the promotional activity.
SEGMENTATION TARGETING AND POSITIONING

Segmentation
TYPE OF SEGMENT:
1. Geographical: Urban India (Metro cities), Rural India ( Small
towns and villages)
 State of being : Need satisfaction, Health Consciousness
and Need Satisfaction.
 Suitable Product: Saffola Gold, New Saffola, Saffola
Active, Saffola Tasty.
2.Demographic:
 State of being: Healthy oil was preffered by educated
Housewives and not by uneducated rural women.
Suitable Product: Saffola Gold, New Saffola, Saffola Active.
3. Behavioural Segmentation Price:
 State of being: To compete with different brands available in
market, Saffola launched 4 different variants with different
prices.
 Suitable Product: Saffola Gold, New Saffola, Saffola Active,
Saffola Tasty.
Targeting
Targeted Segment: Urban India ( Indian Upper Middle Class )
Evaluation Parameters:
 Twenty percent of the country’s population lived in urban
areas or large cities and consume 11.2 kgs of edible oil per year
while the vast remainder lived in rural areas, villages, and small
towns .
 Healthy oil category was undifferenciated in the minds of rural
India.
Rural market was very unattractive because of the following reasons:
 Per capita comsumption is quite low.
 Poor rural infrastructure and consumption habits was very
different from the urban people and were two major obstacles
to enter rural markets.
 Affordability is a great factor for the reluctant of rural people
buying Saffola oil which is a high premium brand.
Lower Income group: Lower income group was more or less
not entertained by Saffola due to quality product and costing is
not easy for them.
Educated Youth: Saffola created awareness in youth towards
the health implications of cooking oil and launched ads to
educate youth which they named as Saffola Cholesterol
Management.
Positioning
Product: Saffola Gold
Type of positioning:Percieved Quality
Strategy: Positioning it as premium brand for health conscious
people. A right combination of safflower Oil and Rice Bran Oil is more
effective in reducing cholesterol than each of the oils singly.
Saffola Gold has the unique compostion of 80% Rice bran oil and 20%
Safflower Oil.
Product: Saffola Tasty
Type of positioning: Perceived Taste and Quality
Strategy: Saffola Tasty was the first Saffola blend. This oil blend
provides the benefits of two oils, thereby giving added value to the
consumer. It provides the high PUFA from Safflower ( kardi ) oil and
the taste of Corn oil.
RANGES
NAME OF OIL QUANTITY PRICE

Saffola Gold 1 Lt. Rs. 135
5 Lt. Rs.730
Saffola Tasty 1 Lt. Rs. 120

5Lt. Rs. 605
Saffola Active 1 Lt. Rs. 115

5 Lt. Rs. 550
SWOT ANALYSIS
STRENGTHS:
 Rich in quality.
 Dominant and largest seller of Edible oil.
 Strong health benefits.
 Products for every segment.
WEAKNESS:
 Price of the product is slightly high for the rural area which affect the
demand of the product.
 Limited market penetration in edible oil market.
 Low visibility.
OPPURTUNITIES:
 Health conscious people are increasing.
 Can Introduce a new range for the rural people which they can easily
afford.
 Niche Market.
THREATS:
 The threats of low price competition.
 Health v/s cost dilemma of the consumers.
 Competition from unbranded and regional items.

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Marketing Management

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Institute of Professional Education and Research

SEGMENTATION TARGETING AND POSITIONING

NAME OF OIL QUANTITY PRICE

Saffola Tasty 1 Lt. Rs. 120

Saffola Active 1 Lt. Rs. 115

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