Introduction
Jai Prakash Associates which runs a large cement plant in Rewa desired to diversify into the Agro-industry and as a first step wished to get into soya and mustard oil manufacturing close to their cement plant to also serve their social objectives.
Complete Market Planning was done in 2 phases on the basis of the in-depth survey with 1500 farmers in the first phase and 420 distributors in second phase
The key objectives of the research prior to the investment were: To understand the market feasibility of manufacturing plant of Soybean and Mustard oil in MP; To estimate the plant capacity; To do the market assessment and planning Soybean and Mustard across North Eastern belt of India.
MIC worked closely with the client to establish the feasibility for the diversification and worked in 2 phases as below:
In Phase 1 Primary Research was conducted with the farmers to check the quantum of soya availability for & develop the sourcing model for soya in villages in MP.
In Phase 2 Primary Research was conducted among distributors and retailers in North, East and NE India. Data Consolidation and analysis was done to give strategic recommendations.
Study was done in 2 phases:
Phase 1 –Feasibility of soya sourcing: Understanding the production & disposal pattern in targeted areas of MP; Present value chain involved, its strategic intent framework & policies; the procurement pattern followed by other companies, Awareness about ITC e-chaupal & how it works.
Phase 2 – Strategic marketing plan: Demand & Supply Side modeling, Market Approach Strategy, Packaging & Positioning strategy etc.
As a result of the research the client was able to take decisions on the viability of Plant set up in Rewa and on its plant capacity &set up a plant there. MIC provided the detail market approach strategy outlining Product, Packaging &Distribution for Jaypee soybean and Mustard oil. Jaypee agreed with the suggestions & planned their packaging & branding accordingly. MIC was then awarded Phase-3 of intervention to appoint CF agents