NIMESH SHAH E&I - 20171032

GEF INDIA PRIVATE LIMITED: 2010 LAUNCHING A

Gemini Edibles & Fats India Private Limited (GEF India) is in the business of importing, processing
and marketing a wide range of edibles oils and specialty fats in India. Based out of Hyderabad,
Andhra Pradesh, the company wants to operate across India with a special focus on South India.
GEF India has launched its first brand, Freedom Refined Sunflower Oil and devised a marketing plan
for achieving its sales targets. It is aimed at value for money segment and to be launched in a
phased manner.

This case study describes the business strategy and marketing plan developed by GEF India Private
Limited for venturing into the edible oil market, initially in Andhra Pradesh and eventually across
India. This case depicts the various elements taken into consideration while formulating the
marketing plan and is being studied to assess if it is satisfactory to achieve GEF India targets.

BACKGROUND:

Gemini Edibles & Fats India Private Limited (GEF India) is promoted by Mr Pradeep Kumar Chowdhry
who was initially the MD of Acalmar Oils and Fats Private Limited. GEF’s business strategy consists
of import, processing, trading and marketing edible oils and fats. From its previous experiences and
network, GEF decided to import crude sunflower oil from Ukraine and refine in India. GEF plans to
build a new refinery in Krishnapatnam (900 MT refining capacity per day) and bought and
refurbished a plant in Kakinada (200 MT refining capacity per day), both in Andhra Pradesh (AP). For
a swift entry into the market, GEF outsourced its requirements to a third-party plant which was
used by another leading brand of cooking oil.

On the basis of AP market survey on consumption for edible oils the company decided to market
their product into two categories, Popular and Price Driven for the domestic market and a third in
the commercial market. The biggest challenges for GEF were penetrating in an already competitive
market and establish a strong brand in the market.

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PROBLEM:

Is the strategy and product unique and sustainable enough for expansion in the competitive
edible oil market?

DIAGNOSIS:

On carefully studying the GEF marketing decisions, the following factors can be diagnosed and
reviewed;

Target Consumers: GEF’s marketing plan targeted households belonging to A, B, C socio-economic

Positioning: GEF decided to position their brand on health platform in sunflower oil category which
was similar to almost all other brand’s positioning.

SKUs and Distribution: The past experience of management was considered to finalize the SKUs
without allowing for the possibilities of exploring various options in form of smaller volume packs to
attract a wider range of consumers.

Product Quality and Product Differentiation: The product quality was kept consistent with market
competitors, i.e. light colour oil was perceived as high quality. No innovation or differentiation was
thought of in terms of the product itself.

Packaging Design: Conventional packaging was followed and design was highly inspired from
existing market leader’s products. Acceptable packaging design was finalized.

Sales Promotion: GEF’s management decided to promote their brand to retailers first and target
customers via retailers. They formed a dependence on the retailers to push the brand in lieu of
various schemes. No scheme was introduced for consumers.

Advertising Strategy: GEF’s advertising strategy consisted of a TVC to target their potential
consumers’ pan-India. But they had surveyed and launched their brand by focusing on AP only. Also,
the TVC was focused only on women and children, men and elders were not targeted through the
TVC.

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RECOMMENDATIONS:

 The D and E category socio-economic households form a large consumer base and should not
be left untapped. Better research should be done to understand possible ways to capture these
households.

 GEF should provide added value along with health positioning to consumers and come up with
a unique selling point to position itself as superior in the health positioning segment.

 Smaller volume SKU’s at lower price point should be launched to felicitate easy penetration in
the targeted segment as well as other potential consumers may be willing to try small quantity
before making purchase decision.

 Product quality and differentiation should be done by adding new nutritional elements to the
product and its benefits be well communicated to the potential consumers via marketing
promotions and advertisements.

 Appealing package design should be introduced rather than acceptable design inspired from
competitors. An attractive package design gets maximum buyer attention.

 Consumer centric schemes should be introduced to attract potential consumers instead of

 Senior citizens and men should be targeted along with women in the TVC and target consumer
selection as the households have become more health conscious towards men and elders.

 GEF should diversify its oil categories according to the geographic preferences and consumption
patterns. Launching new category oils will help capture a wider consumer base outside AP and
get a diverse product portfolio.

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OUTCOMES:

GEF India will successfully achieve its expansion plans if it reviews and patches various loopholes in
its marketing plan and implements the recommendations;

 Targeting D & E category households will help GEF establish consumer base in the price
sensitive segment.

 Adding value to health oil positioning will give GEF ascendancy in the already competitive health
oil segment.

 Small volume packages will act as an entry point to penetrate the target consumers as it is easy
to gain sales on larger volume packages once consumer is satisfied with the quality.

 An appealing design and unconventional packaging will differentiate the product from
competitors and have a higher brand recall value than others.

 Rewards schemes for consumers instead of just retailers will attract more consumers and lead
to higher overall sales.

 Promoting freedom oil as healthy oil for the entire family including seniors and men will have a
better impact on consumer buying decision.

 Diversifying into different oil types will help GEF achieve its pan India expansion plans.

Reference:
IIM Ahmedabad Case Study for Personal Use of SPM, PDPU.

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