Marketing problems of edible oil industry in India has been researched and summarised in this post. One of the most essential consumer goods is edible oil. Every day, consumers utilize it in the preparation of food. The demand for edible oil is increasing as the population and quality of living of people worldwide rise. The production of cooking oil is done by both large and small enterprises. Owing to liberalization, the import of edible oil is also encouraged.
- Marketing Problems of Edible Oil
- Edible Oil Marketing Casestudy in Tamilnadu
- Tips To Solve Marketing Problems of Edible Oil
Marketing Problems of Edible Oil
Through its Public Distribution Shops (Fair Price or Ration Shops), the government distributes edible oil to the public living below the poverty line. Nowadays, huge oil mills choose large-scale manufacturing in order to benefit from economies of scale. Many new businesses enter the market because of the profit margins in large-scale units. Existing small businesses are unable to compete with giant corporations in terms of product promotion.
The difficulty in the edible oil industry nowadays is not one of manufacturing, but rather one of marketing. Despite the fact that much prior research has concentrated on the manufacturing and economics of large-scale edible oil production, only a few studies have concentrated on edible oil marketing problems.
Edible Oil Marketing Casestudy in Tamilnadu
In Tamil Nadu, branded oil meets almost all of the edible oil demand, with unbranded oil filling in the gaps. There is fierce rivalry in the industry as the number of oil refineries manufacturing branded oils grows. Marketers rely heavily on their own marketing tactics, as well as the plans of their competitors.
Because of the degree of education, urbanization, and the enormous expansion in communication facilities, consumers’ awareness, exposure, and understanding of edible oils are also increasing. They aim to grab the market since branded oil is only provided by huge units. Small oil units are experiencing a downturn in business. However, these tiny businesses are primarily concerned with their own customers, and they are inept at monitoring consumer preferences in the edible oil industry.
The relevance of advertising and market related operations in the edible oil sector is underestimated by small businesses. Even while some small businesses have greater exposure to edible oil marketing, they lack the money to develop their own marketing strategy. Because customer behavior is inherently unpredictable, both small and large businesses confront several challenges in marketing their products. Industry orientation, marketing tactics, and practices in the cooking oil market are becoming increasingly important as a result of globalization.
Tips To Solve Marketing Problems of Edible Oil
Only the distribution channels, marketing costs, market margins, packaging, and advertising have been examined in this research. However, little research has been done on the marketing issues faced by edible oil producers. As a result, the current research is limited to features of marketing issues within the edible oil industry.
Owners of edible oil units must be educated in marketing so that they can sell their goods more effectively. They should consider the big picture while acting locally. It indicates that their product must be of good quality and appropriate for the local market.
Because of their weak financial power, small-scale oil mills are unable to compete with large edible oil production companies. As a result, they are urged to establish clusters of small units and manufacture higher-quality branded oil. Only then will they be able to compete effectively in the cooking oil market with the giants.
Because the profitability of edible oil businesses is heavily dependent on the number of outlets covered by a well-established marketing strategy as well as logistics management, owners of small and big businesses should be adequately trained in these areas. Only then would they be able to sell their items in a niche market. They should understand that by increasing sales, they may profit. As a result, they are encouraged to use a variety of promotional and advertising tactics to increase their sales.
Finance, customers, rivals, and middlemen are all major marketing issues in the edible oil business. Small and large business owners must be aware that this will happen in their establishments. Because marketing issues are unavoidable in the market, businesses cannot prevent them, but they may handle them by employing scientific management concepts.
What is the market size of edible oil in India?
Owing to the rise in disposable income and increased consumer awareness about healthy lifestyles and wellbeing, the edible oil market in India is expected to expand from about $ 21.5 billion in 2019 to $ 35.2 billion by 2025.
Which country is world’s biggest consumer of edible oil?
The United States and China are the top largest consumers of oil in the world, totaling 17.2 million and 14.2 million barrels per day.
Which edible oil is mostly used in India?
In India, palm oil is the most imported edible oil. Imports of soybean oil have also risen considerably recently. Vegetable oils account for more than half of India’s total agricultural imports.
Who is the #1 producer of oil in the world?
The United States, Saudi Arabia, Russia, Canada, and China are the top five oil-producing countries. In 2017, the United States overcame Russia for second place, and a year later, it eclipsed erstwhile leader Saudi Arabia to become the world’s top oil producer.
What is the healthiest oil to cook with 2021?
Olive oil, as long as it’s extra virgin, is one of the most versatile and healthful oils to cook with and eat, according to nutrition and cookery experts.
Why are edible oil prices increasing in India?
India imports so much edible oil that the government spends more money on only two other commodities: crude oil and gold. Because of India’s significant reliance on imports, retail prices of edible oils are extremely susceptible to international conditions.
http://www.ipublishing.co.in/ajmrissues.html – Volume 1 Number 1 2010Author(s)- Dhinesh babu.S, Venkateshwaran.P.S for Asian Journal of Management Research