Daawat Rice.docx

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Corporate Profile

LT Overseas to LT Foods Ltd: Small beginnings to Global Presence

When it all began about 30 years ago, nobody could have even dreamt that the

small trading company that came into being as Lalchand Tirathram Mills couldone day be on its way to become a leading global food company.

1965, Bhikiwind, in a little village in Amritsar (Punjab, India); Shri Raghunath

Arora started a small trading company which grew from being a

commissioning agent to a partnership firm by 1977, as Lalchand Tirathram

Rice Mills.

1978: Mr. V.K.Arora joined the family business with his father, with a clearvision of taking his company to a global level. In 1980, the company started

exporting Premium Rice. This was the first step towards making this vision a

reality.

Simultaneously, the company decided to face the challenges in domestic

markets by setting up a modern, state-of-the-art rice factory in Sonepat,

Haryana in 1984. Unorganized players with inconsistent quality products

were crowding the market. In this scenario, Mr. V K Arora felt the need to

promote branded and packaged products. In line with this vision, thecompany started the business of milling, processing and marketing of branded

basmati rice and manufacturing of rice food products in the domestic and

overseas market.

The birth of a Brand

Daawat came into being in the 1980’s, and this resulted in a steep vertical

ascent of the company’s growth in the 1990’s. Further industry innovationsfollowed with complete streamlining of the manufacturing process, removal of

bottlenecks, and total modernization of rice manufacturing plant and

machinery and its balancing capacity. Moving ahead of the market, Mr.

V.K.Arora introduced 1kg and 5 kg packs of rice in the market, as per

consumers’ requirements.



Brand Daawat has over the years taken on the tough competition in the

industry, and has managed to create depth as well as width for itself, moving

at a pace faster than its rivals. Today, Daawat brand caters to three broadsegments – Retail, Institutional and Economy – with specific offerings through

a range of sub-brands. A phenomenal 30-fold rise has seen it become a 700

crore company with over 19 brands. The portfolio includes ‘Daawat’, one of

the top three Basmati brands in India and ‘Heritage’, another premium

basmati. The company’s product portfolio also includes brown rice, white rice,

steamed rice, parboiled rice and organic rice.

The industry recognizes Daawat

To increase the acceptability of LT Overseas products globally, the company

has taken the lead in implementing industry best manufacturing practices &

obtaining internationally acclaimed certifications. LT Overseas (now LT Foods

Ltd) was among the first few in the rice industry to obtain the ISO 9001-2000

certification. Presently LT Food has obtained certifications like HACCP, SQF,

BRC, and Organic and EIC.

Footprint across the globe

The company has a strong distribution network in all major basmati

consuming cities in India with more than a hundred distributors in each state.

L T Overseas has also made inroads into more than 50 countries across the

globe including markets like USA, Canada, UK , EU, middle east and Africa.

Another significant initiative of the company has been in the area of

manufacturing and marketing parboiled rice. An ultra modern rice plant

began operations at Mandideep near Bhopal in 2007, and this will help the

company cater to the huge demand for parboiled rice in the international

markets.

To strengthen its presence in the global market, L T Overseas acquired Kusha

Inc in 2007; Kusha Inc has a 42% share in the US market, giving L T Overseas



a combined share of 52% of the US rice market. This was also the first by an

Indian Rice Company.

Today, LT Overseas is ranked among the top 10 food processing companies inNorthern India, and among the top 50 companies by Dun and Bradstreet 8th

Edition of India’s Top 500 companies 2007.

From a Rs. 700 crore company, L T Overseas is poised to become a Rs. 1500

crore group and a leader in the food products business, in India, and in the

International Markets.

LT Overseas Ltd is now LT Foods Ltd

With company spreading wings all over the globe, acquiring key markets &

strategically developing new products, there was a corporate need felt to

identify with a wider scope .The company & its present as well as new

subsidiaries are also working on new food related projects & products. All this

has led to strategic realignment of resources & focus giving birth to a new

avatar LT Foods Ltd. Now onwards LT Overseas will be known as LT Foods

Ltd.

Vision

To be a Leading Global Rice Foods Company

Mission

To deliver value to the customer, be profitable and establish leadership in

core markets. The company strives towards diversification and expansion of

the product portfolio. To command top of the mind recall with the consumer

by ensuring effective brand promotion strategies. Invest in research &

development activities so that the company can deliver ever better products

and always stay ahead. Focus on increasing global footprint by venturing into

newer markets and at the same time forge fruitful alliances with entities

operating within the same plane.



Core Values

Promoters

Vijay Kumar Arora

Vijay Kumar Arora is the Chairman and Managing Director of LTFoods Ltd (formerly known as LT Overseas Ltd). He joined LT Overseas in

1978 after completing his Graduation. He has also attended the management

development program conducted by the Administrative Staff College,

Hyderabad. He has been the promoter director of the company since its



inception. His key responsibilities include international marketing, strategic

planning, finance and business development.

Ashwani Arora

Ashwani Arora is a whole time Director of LT Foods Ltd. A

commerce graduate, he has also attended the management development

programme conducted by the Administrative Staff College, Hyderabad. He is a

promoter director of the company since its inception and his key

responsibilities include marketing and brand promotion in the domestic

market.

Surinder Arora

Surinder Arora is a whole time director of the Company. He

joined the partnership firm (LCTR) and has been associated with the Companysince its inception. He has vast experience in procurement, production and

plant operations. He is one of the promoters of LT Foods Ltd and has been the

director of the company since 2000. His key responsibilities include

production and procurement.

Mr. Ashok Kumar Arora

Ashok Kumar Arora is a President of Punjab Operation. He is

graduate in Arts and has been with this company since 1993. He has 20 year

of experience in rice industry and is presently looking after Punjab unit

covering all the areas i.e. production, distribution & packaging.



Milestones

Since inception LT Foods has believed in delivering the best. And the

endeavours have always been met with numerous recognitions and awards. A

consistent streak of prized metal has whetted the company's appetite for

more. And they stand as a testimony to the fact that the ongoing efforts will

only be intensified in the future. New standards will be aimed at. And the bars

will be set higher.

2007-08

* Staple Distribution Company launched in domestic market to cater to the

demands of modern retail.

* State of the art plant set up in the Mandideep, Bhopal (MP.)

* Acquired a top US Company, Kusha Inc; Kusha's brand, Royal is among the

top 20 US brands: Company's share of the US market goes upto 52%.

2006-07

* Inauguration of Silos Complex

* Increase in capacity from 18 MTPH to 27 MTPH

2005-06

* Awarded Udyog Ratna by PHD chamber of commerce and industry

presented by Shri Bhupinder Singh Hooda Hon”ble Chief Minister , Haryana

for valuable contribution to Economic Development of Haryana

2004-05

* India Star Award from India Institute pf Packaging.

* Enhanced the capacity in Bahalgarh unit from 10TPH to 12 TPH , making the

owned capacity to 18 MTPN.

2003-04

Award from APEDA for export promotion and quality development of Basmati

rice

2002-03* Received the right to use APEDA certification mark Quality products of India

for export

* Enhanced the capacity in Bahalgarh unit TPH to 10 TPH , making the total

capacity to 16 MTPH

2001-02



* Registered and launched the brand DAAWAT in Canada

* Obtained ISO 9000:2000 certification

* Obtained HACCP certification of SQF (Safe Quality Food)20000CM for

comprehensive food safety and Quality management systems

2000-01* Started the processing facility at Bahalgharh Unit of 4 TPH

* Registered and launched the brand DAAWAT in Australia

1999-2000

* Recognised as Star Trading House by Government of India

* Registered and launched the brand DAAWAT in Mauritius Saudi Arabia and

New Zealand

1998-99

Took over the business of Lal Chand Tirath Ram Rice Mill having capacity of 6

TPH1997-98

Awarded APEDA Export award for outstanding contribution to promotion of

agricultural and processed food products during the year 1996-97

1995-96

* Certificate of merit was awarded by APEDA for Significant contribution in

the export of India long grain rice

* Registered the brand DAAWAT in united States of America

1994-95

Set up own milling capacity1993-94

Converted into a public Limited Company

1990-91

Incorporation of our company as a Private limited company



Products

Daawat

About Daawat

LT Foods Ltd. is one of the country’s leading processor and exporter of

packaged rice foods under the flagship brand “DAAWAT”. The brand is among

the top players in the domestic branded Basmati Rice markets. .

‘Daawat’brand has been a great success in international markets as well.

Quality based procurement, state of the art milling plants, product quality andcustomer focus are a few things Daawat has always been known for.

This ensures that Daawat Basmati rice is just perfect in all aspects of the

Basmati Rice with uniformly long grain, pristine white luster and appetizing

aroma. Anticipating the needs of the consumers the company offers

hygienically packaged nutritious rice in the Super Premium, Premium and

Economy category

Daawat Select- India’s Authentic Basmati rice (Available in 1Kg, 2Kg,

5Kg, 10Kg and 20Kg packs)

Daawat Authentic Basmati rice; Let its exquisite aroma fill the air

while you simmer it to perfection. And your family will be lured to the diningtable bound by the spell. Daawat Select Basmati rice is known far and wide for

the magic its aroma creates. Fertilized by clean, snow-fed water from

Himalayas and processed with the state of the art technology, its uniform, long

grains & pristine, white luster never fail to entice.



Daawat Gold Basmati Rice (Available in 1Kg, 5Kg and 10Kg packs)

Daawat Gold Basmati rice royal long grains that are what

defines Daawat Gold Basmati rice. It is amazingly white luster, the enchanting

aroma and an unforgettable taste. Be it biryani, risotto or your special lemon

bhaat, this extra long-grained rice is bound to make everything all the more

scrumptious. Fertilised by clean, snow-fed water from the Himalayas and

processed extremely hygienically, it is the most refined basmati you’ll ever

get.

Daawat Super- India’s Finest Basmati Rice (Available in 1/2 Kg, 1Kg, 5Kg,

10Kg, 20 Kg and 25Kg packs)

Daawat Super Basmati rice - Just have spoonful of this wonderfulflavorsome rice and you will know why they say God visits mortals in the form

of food. Daawat Super Basmati Rice boasts of the taste that can transform

your everyday meal into gourmet’s delight. And to add to it, we take utmost

care while processing to retain its tastes and nutritive value. All so that every

grain becomes incredibly delectable and every meal, the best you ever had.



Daawat Rozana (Available in 1Kg, 5Kg, 10Kg and 25Kg packs)

Daawat Rozana Basmati rice Celebrate each day with the super

economical, super tasty Rozana Basmati Rice. Basmati rice that fits perfectly

in your budget. Daawat Rozana with its taste, aroma, long grain and pristine

white luster lets you make every meal special. No wonder it is the first choice

of every homemaker.

Daawat Devaaya Basmati Rice (Available in 1Kg, 5Kg and 20Kg packs)

Daawat Devaaya Basmati rice Nurtured in the sun-kissed fertile

plains of Northern India, Daawat Devaaya is polished, graded and passed

through colour sorter machine to give it a distinctive pearly texture.

Untouched by human hands, Daawat Devaaya has been one of the most

popular brands among the masses for its magnificent taste & affordable price.

The product has made a special place in all major modern retail outlets.

Daawat Chef’s Secretz Basmati Rice (Available in 10Kg packs)



Daawat Chef’s Secretz Basmati Rice - Nurtured in the sun-kissed

fertile plains of Northern India, Daawat Chef’s Secretz Basmati rice is polished,

graded and passed through colour sorter machine to give it a distinctive

pearly texture. Untouched by human hands, Daawat Chef Secretz has been one

of the most popular brands among the institutional customers. As the name

suggests it is one of the core ingredients of many popular rice recipes served

in many prominent restaurants across India.

Daawat Brown Rice (Available in 1/2 Kg and 1Kg packs)

Daawat Brown Rice - ‘Daawat Foods Pvt. Ltd’ has introduced

Brown Rice to augment their existing market and consumers both nationally

and internationally. The product is available in attractive carton boxes of 1kg

and 500 gms . The product is available in many modern and traditional retailstores. The secret of launching Daawat Brown Rice lies in its nutritional value.

Brown Rice is the healthier food and is very low in saturated fat but is fiber

enriched. It is known to be a food grain that is healthy and nutritious for all

the age groups.

The unique patented technology that has increased the shelf life of the

‘Daawat Brown Rice’ to 1 year vis-à-vis 6 month of ordinary Brown Rice.

When compared to other ordinary brown rice Daawat Brown Rice not onlycooks faster but also makes tastier foods. It can be used in all the white rice

dishes like pulavs and biryanis and cooks in the same time as the white rice

i.e. 15-18 mins. Daawat Brown Rice also does not require soaking as in

ordinary brown basmati rice.



Advertising

Daawat Basmati Rice is a huge favorite across 35 countries.

Great work of art have always been the topic of dinner conversations.

As passionately as you create every dish.

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Daawat Select Basmati Rice .

The ingredient of finest recipes and engrossing dinner table conversations.

Great aroma, great test, great texture.

Daawat Brown Rice.

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Daawat Gold birayani rice.

Daawat Select Basmati Rice .

Fresh new look, same great taste.

Indian Subsidiaries:-

Daawat Foods (P) Limited

The wholly owned subsidiary of LT Foods Ltd (formerly known as LT

Overseas Ltd) was set up with state of art technology, milling unit in

Mandideep, Bhopal, for production of parboiled rice. Rice processed here will

cater to the institutions and requirement of Middle East market as well. Your

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company has made investment of Rs. 23.50 crores in this subsidiaries.

Nature Bio Foods Limited

The company recognized that organic food is future of the world and in thesame direction, company initiated steps few years back. For the same, the

wholly owned subsidiary of the company was incorporated to cater the need

of organic market which is approximately a market of 22 billion dollar world

wide and growing with the peace of 10%.

Staple Distribution Company Ltd. (www.stapledistribution.com)

Looking at the potential and boom in retail business, Staple DistributionCompany, a wholly owned subsidiary of the company has been incorporated

during the year to play and establish itself as a backend player for Modern

retail.

LT International Limited

LT International Ltd., a subsidiary of the company is engaged in trading of

varied merchandise.

Four Ps of Marketing - Product, Price, Promotion, Placement

The Four Ps Of Marketing

Marketing has traditionally been segmented into four separate areas called

the Four Ps of Marketing. The 4 Ps of marketing are product, price,

promotion, and placement:

http://www.stapledistribution.com/

http://www.stapledistribution.com/



A formal approach to this customer-focused marketing is known as SIVA

(Solution, Information, Value, Access). This system is basically the four Ps

renamed and reworded to provide a customer focus. The SIVA Model

provides a demand/customer centric version alternative to the well-known

4Ps supply side model (product, price, place, promotion) of marketing

management.

Product → Solution

Promotion→ Information

Price → Value

Placement → Access

1. Product: Product marketing deals with the consumer's needs and

wants and how product specifications can satisfy those needs and

wants. Product marketing can deal with a whole array of issues such

as product size, color, and look and feel of the packaging. Often, first

impressions are important, especially if you are marketing a product

that sells on store shelves. You would want your product to stand out

or for the consumer to want to choose your product over the others

on the shelf.



2. Price: Price deals with supply and demand, or how much a consumer

is willing to pay for a product or service. It also includes decisions on

discounts and special offers. Pricing is not as simple as it might seem.

In some situations, a lower price will not necessarily mean that more

will be sold as the price level could also influence the perceived

quality of a product. For example, affluent consumers may expect a

premium product to cost more and, so, may not purchase it if the

price is cheap. Pricing often affects the consumer's perception of the

attractiveness of a product.

3. Promotion: Promotion deals with the actual selling, advertising, or

publicity of the product; it entails your communications with your

customers and trying to convince or persuade them to purchase your

products or services. This could be done through such things as

television commercials, magazine ads, direct mailings to residences

or businesses, and billboards.

4. Placement: Placement has to do with the availability of your product.

You want your product to be visible at the precise moment that a

consumer is willing to purchase such a product, be it through an

actual need or an impulse buy. Products can reach the consumer

through multiple ways, including through retail outlets or mail

order. Not every consumer shops the same way and productplacement is the art of getting the product to the right consumer at

the right time.



RESEARCH METHODOLOGY

For any fmcg company to have efficient distribution channel needs to have satisfied intermediaries, so

that they hold with company products and provide them to end user. Thus I selected my research

objective as:

RESEARCH OBJECTIVES

Research Objectives are as under:

To identify the Marketing Strategy of Daawat Rice.

To know the Consumer Behavior towards product.

To identify the area of service in which company needs to Improve?

To help the Company in designing proper strategies for rural area.

To know the price of the product.

To know the positioning of Daawat Rice in the market.

To know the promotional Strategies.

To know the advertising strategies

research design

Purpose of study: - Descriptive



The study focuses on the satisfaction level for different products. As well as on other parameter's such

as Commission, Delivery mechanism, Sales Force, Credit Period. etc.

Degree of research question crystallization: - Exploratory study

As per my objective of the research, the research questions would try to find out the current situation in

the market regarding the satisfaction level. Moreover, the hypothesis is not pre-defined here, but it

would be define during the study. Here research problem is also general.

Method of data collection: - Interrogation & Personal Interview

Based on my initial observation, I have prepared a questionnaire to collect the response from retailers

and whole sellers as primary data. Versatility of the questionnaire will help to cover almost all related

factors impacting the satisfaction of the target sample. Interrogation takes less time than observation

and gives information that is more purposeful

Research environment: Field study.

Survey is the main part of the study and primary data collection. So that the study will be carried out in

field, I have gone to the market and interviewing retailer's and Wholeseller's in the area of Sagar.

DATA COLLECTION & DESIGN

Data source: Primary source

To satisfy the objective of the research it is necessary to get the response from the respondents, which

act as primary source of data. I have collected Primary data by personally surveying Retailer's &

Wholeseller's in the sampling area specified.

Approach: Interview (Personal Contact)



Instrument: Questionnaire

Questionnaires Designing:

It is the most crucial part of any market research. I have taken a due care in designing the

Questionnaire for my research. I have meet more than 50 retailers during my training period in

order to learn the Order taking Mechanism, POP Displays, Competitive Products, Retailers Attitude

towards sales force etc. Even from Area Sales Manager I identified various Parameters to be listed

in my questionnaire's have taken utmost care in deciding right question, correct sequence, what

should be wording of each & layout of questionnaire as a whole.

Type of Questionnaire: Structured Non Disguised

I have arranged the questions in a specific order to get the facts and the interviewer be asked to

response strictly in accordance with a pre-arranged order. The objective of the survey was disclosed

every time before getting the response from the respondent .

Type of Question: Close Ended

Number of questions: 50

SAMPLING PLAN

Sampling Area :Sagar

Sample Population : Customer’s, Retailer's and wholesalers of Sagar Area.

Sample Size : 50

Method Of Data Collection : Questionnaire

Sampling technique : Convenience Sampling



LIMITATIONS

Limited Time available for interviewing the respondent. As a result of this it was

not possible to gather full information about the respondent.

Some time the problem which I face is language problem for which I have to

make them understood.

The time constraint face in my project might have affected the comprehensive of

its findings.

Some time the retailers & customer do not respond rightly to the questionnaire.

Sample size was very small as compare to the population of Sagar city.

People did not give full response and they are bias in some personal questions.



QUESTIONNAIRE

Name : ----------------------------------------------

Address: ----------------------------------------------

Contact No. : ----------------------------------------------

Q.1 Which Rice Brand do you use?

(a) LT Foods (b) KRBL c) Kohinoor (d) REI Agro

Q.2 You purchase the above brand because of the?

(a) Price (b) Quality (c) Packaging (d) Others

Q3. You buy the Daawat Rice on basis of ?

(a) On you’re one (b) Advised buy the friends (c) Advertisement

(d) Demonstration of the Product

Q4. Taste of this Rice is?

(a) Excellent (b) Good c) Better (d) Same as other

Q5. What is view about packaging?

(a) Highly Satisfactory (b) Satisfactory (c) Not Satisfactory

Q6. Do you get any, Discount or other schemes while purchasing the products?------------------

--------------------------------------------------------------------------

Q7. Are you aware of any sales promotion schemes?---------------------------------

Q8. Why are you using this Brand?



(a) Cheap (b) Tasty (c) Brand Image (d) All

Q9. Offer your suggestion to the dealer?

-------------------------------------------------------------------------------------------

Date: Signature

CERTIFICATE

DATE: __________

The project report titled “MARKETING STRATEGIES OF DAAWAT

RICE” in Sagar City Prepared by HARISH VISHWAKARMA (MBA 1ST

Sem), under the guidance and supervision of MR. ASHISH TIWARI (Lecturer of

MBA Deptt., SVNIT) for the partial fulfillment of the degree of Master of

Business Administration is satisfactory in respect of :-

Comments By Supervisor Head of Deptt. Examiner

1. Contents and presentation

of the subject matter

2. Language

3. Embodies the original work

of the candidate.

4. Submission within due date



Signature of Examiner Signature of Supervisor

Signature of H.O.D.

DECLARATION BY CANDIDATE

I declare that the project report on “MARKETING

STRATEGIES OF DAAWAT RICE” , in Sagar City is my own

work, conduct under the supervision of of MR. ASHISH TIWARI

(Lecturer of MBA Deptt., SVNIT) affiliated by Dr. Hari Singh

Gour University, Sagar (M.P.).

To the best of my knowledge the report does not contain any

work which has been submitted for the award of any degree,

anywhere.

Signature of the Candidate

HARISH VISHWAKARMA

MBA 1st SEM.



ACKNOWLEDGMENT

I would like to pay my sincere thanks to Dr. Pramesh Gautam Head

of the MBA Dept., SVNIT. Sagar for providing me the opportunity of

doing the project report.

I would to express my deep sense of gratitude to Mr. Ashish Tiwari,

Lecturer for his valuable guidance, advises, Cooperation & Constant

encouragement during the project preparation. He is very supporting

and without his help I would not have completed my project report

successfully.

I express my heartful thanks to Miss. Preeti Shukla, Miss. Neha Dubey

& Mr. Chaitanya Kaushikya and to the staff of SVNIT, Parents and

friends for their kind support and suggestion.

I am very thankful to retailer and customer whom I had approached

for collection of necessary data and who give their valuable time and

comments, which were the inputs for my survey.



Date:

Place:

Harish Vishwakarma

MBA 1 ST Sem.

PREFACE

The project report has an objective to get the MBA student

familiar with real life business situation and gives an opportunity

to the student of understand the theoretical concepts of

marketing and finance in practical way.

In today’s world “Consumer is the King” consumer test and

preference go alone way in the actual sales of the product. Every

research work has to deal with various people in concern

organization and each of them have their own opinion and

thinking about various topics.

The main aim of the survey report was to determine the

Marketing Strategies of Daawat Rice in Sagar City.

I tried my best to express the report through satisfactional

representation, graphs, pie diagrams etc. and it helped me to

enhance my knowledge I am extremely happy to place before our

esteemed teachers.

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