How should Rare Vanaspati create brand awareness in a bid to create customer loyalty for enhanced market retention


To: Senior Management


Title: How should Rare Vanaspati create brand awareness in a bid to create customer loyalty for enhanced market retention?






Subject and level: Business and management higher level


Circulation: Chairman and board of directors


Number of words:


I substantiate that the following report has been generated with own effort and that the presented version is the final draft. In-text citations are accorded to direct quotes or ideas that have been acquired from other individuals, whether in writing or verbal.










Contents                                                                                                                                             Page

Executive Summary


Procedure/ Method

Main Results and Findings

Analysis and Discussion

Conclusion and Recommendations

Bibliography and References




Executive Summary


Rare Vanaspati is a leading sole proprietor producer of hydrogenated cooking oil located in Sri Lanka. Much of the company’s produced oils are distributed to foreign markets, largely marked as the Indian wholesale domain as exports. The company achieves its sales through business intermediaries who act as the imported to the target market in India. The imported oil is accorded another brand name, as per the intermediaries’ instruction that is compatible with the Indian market. The main weakness associated with this marketing strategy is that the product has been deficient in the creation of brand awareness and consumer loyalty in India which consequently would ensure higher market preservation.


Although the company continues to note increased growth in terms of enhanced sales through a strong management team and leadership strategies that have ensured low overheads and increased profitability margins, a logistics solution needs to be implemented within the two nations for the creation of a competitive edge against foreign industry rivals. This has therefore led me to the following research question:

“How should Rare Vanaspati create brand awareness in a bid to create customer loyalty for enhanced market retention?”


The paper will analyze the various solutions towards the above research question.


Procedure and Method

The primary research conducted in this study comprised of interviews on the senior management officials within the company. Information gathered from the interviews was used in the analysis of the weaknesses within the company’s internal structure and how this affects the marketing component of the organization. Additionally, questionnaires were formulated for the inclusion of the marketing department within the study for a comprehensive analysis of the problem that faces the company in terms of branding and market retention. The questions used in the documents were both open and close ended, with the latter comprising of the likert scale. The number of participants used in the study was seventeen employees involved in the management and marketing departments of Rare Vanaspati.


Secondary information was primarily sourced from analytical tools like charts and graphs used to assess the company’s growth trends over the years from the periods 2000 to 2011. Complementary information was acquired from the internet and course books. Problems faced in the acquisition of primary data was the time factor

Procedure/ Method

Main Results and Findings

Analysis and Discussion

Conclusion and Recommendations

Bibliography and References







Marketing Strategy: Brand Appeal for Rare Vanaspati Oil


This paper shall explore the viability for business improvement through a product barding strategy as part of market retention and expansion. The branding of Rare’s product lines shall be opportune I going by the escalating business scenarios.


The marketing of cooking oil from Sri Lanka in the Indian market is poised for radical changes in light of the prevailing economic circumstances and political scenarios. In light of India’s improving comparative economic advantages to produce oil locally as well as expanding international cocking oil sources on the global arena, Sri Lanka’s oil shall face increasing competition. Nonetheless, their primary occupation of a significant market segment is strength with unique opportunities. Brand strategy is the best option in facing this challenges and capitalizing on the strengths. Rare Vanaspati has the advantage of holding a significant market segment which need only consolidation and differentiation to attain heightened loyalty and hence competitive advantages against all the competitors.

Marketing Strategy: Brand Appeal for Rare Vanaspati Oil

The performance of any business entity is hugely dependent on the satisfaction the services and products command amongst the consumers. This is the sole reason why market strategies and distributions logistics form a major backbone in business operations. The nature of the goods for the company being household consumables, there is often high sales volumes and thus the nature of marketing and strategic market explorations are vital to sustainability and excellence.

Rare Vanaspati is a sole proprietorship concerned with the manufacturing hydrogenated cooking oil in Sri Lanka. Currently their main market focus is on the Indian wholesale market, where they sell the product through importers. However not under the label of Rare or any other brand associated but rather brands that the importers give the company. As a result of this, though Rare is the end manufacturer they lack brand awareness and loyalty in the market. Therefore Rare Vanaspati must now reconsider their target markets and while keeping them in mind, indulge in methods that would impart its brand into the market and generate image along with consumer loyalty.

A scientific research on Vanaspati and cooking oil brands available in the market discovered that most oil brands and almost all Vanaspati brands are unhealthy for consumption owing to high Trans-fatty acid contents. The politics of brands is a heated debate within the Indian society as a result of many elderly people having heart related complications. It is therefore crucial that the Company improves on their technology through schedules of refinery and manufacturing to meet the demands of the consumers. In addition, as per the WHO regulations, the acceptable maximum value of trans-fatty acids in cooking oil is one per cent or below. The ratios for the relative abundance of essential and saturated fats are also controlled in the recommendations and thus the manufacturers have the duty to comply and again consumers often being very informed, impress very critical judgments on the brands.




It is obvious form the various business data yielded that the Rare Vanaspati has a robust growth credential which can be attributable to the managerial competencies and effective distribution which reduces the cost of operations considerably and thus promoting the profitability of the firm. The management of logistics for the Rare Vanaspati products between the two countries is a critical factor to the excellence of the


The domestic sources of oil seem poised to improve and the social and economic circumstances of production changing positively, the competition will take a new dimension thus prompting the quest for branding and hence market retention accruing from brand loyalty. The current logistical and managerial competencies of the Rare Vanaspati have a considerable edge over the others.

Price is a major determinant of the success of a brand within a very competitive process as the company finds itself

SWOT analysis (of the company, this study embraced the futuristic trends of finance, profitability and accounting as well as the general aspects of political and social welfare variables of the target market)
Strength (internal)  : This project is set up considering extension in future, so if done will be at relatively low cost of capital. The company has its own power generation so they are not dependant  on outside electricity hence can run our plant without disturbance continuously which is a basic requirement since Vanaspathi manufacturing is a continuous process.
Weaknesses (internal): The main weakness here is dependency on local labor which is not hard working and efficient.
Opportunity (external in the economy etc): This project is set up under free Trade Agreement between India and Sri Lanka as a BOI ( Board of Investments of Sri Lanka)unit eligible for duty free import of Raw material into Sri Lanka and export of Vanaspathi from here. There is no import duty in India for such imports from Sri Lanka, so we have edge over Indian manufacturers of Vanaspathi because of duty benefits. Threats (external): We have to depend on government policies in this regard, any change in duty structure by any government can make the project non viable. Energy being the main hindrance to manufacturing efficiency which have been well met by the company shall no longer make part of the greatest contribution for the overheads.

PEST analysis (for Sri Lanka, India and how they affect the company)
Political : Since the project is set up under  FTA (Free Trade Agreement ) any change in government stand whether by Indian or Sri Lankan government can change its working either way positively or negatively  both. The management shall go the extra mile to achieve political and social disparity harmonization through specially modeled programs of corporate social responsibility.
Economic: This project is set up to boost Sri Lankan Economy which was the main purpose of FTA whereas  Imports of items from Sri Lanka mentioned in FTA is duty free in India giving a competitive benefit to these imports than local manufacturers in India. So it is good for Sri Lankan Economy whereas not good for Indian Manufacturers. Social: These projects are giving social upliftment to Sri Lankan Public by providing employment to local citizen and other services like transport, port and infrastructure giving boost to local business.
Technology: This is not a very advances high technique project, so on this front it does not offer

Any substantial opportunity to either country.
Porters five analysis –
These analyses portray several variables into the consideration of financial efficiency of the firm. They include the following:
Threat of new entrants in the industry: There is a overall cap on Export from here so Sri Lankan Government may not permit new entrants, because the present production capacities are more than the export entitlement. In addition, the bargaining power of buyers: Our buyers in India purchases the various brands of the company from our associate concern their so their bargaining power depends on demand in regional parts of India on account of festivals marriage season. Moreover, the bargaining power of suppliers: There is no shortage of Raw Material in International market, so it gives one institution  credence based on your payment terms and big quantities u proposes to buy.
The threat of substitutes (like other types of oils etc): A very small portion of India demand is met from here so does not have much threats of substitutes for our product and Vanaspathi oil has specific applications so can not have other oil as 100 percent substitute. Competitive rivalry: In Sri Lanka export of Vanaspathi oil is under quota allotted by the BOI and commerce ministry, hence there is no competitive rivalry.
A brief analysis of the main competitors of Rare Vanaspati and their marketing strategies: There is no competition in Sri Lanka because of Quota system applicable for Export. Here we are producing Vanaspathi as per the quota for export allotted to us.
Any government data present on the consumption of oil etc and the market scope: In Sri Lanka Vanaspathi oil is not used at all. Here coconut oil is used for cooking. The demand for coconut oil also is very low. No specific figures are available but the consumption here is not more than 1000 MT per month. Moreover, strategies Rare used to decide its target market and how to price its products, and if any marketing techniques were ever used. To get full benefit of the pricing fluctuation in Indian market, we worked on the basis of commission sales agent. We export to that agent and he sells in the market on commission basis. Price fluctuation is to our account.
Distribution channel process of the company: We are doing our marketing through Commission sales agent. This strategy has not only seen the company through many serious developments but also the advancement of the technical capacity of the firm to attain excellence.

A scientific research on Vanaspati and cooking oil brands available in the market discovered that most oil brands and almost all Vanaspati brands are unhealthy for consumption owing to high Trans-fatty acid contents. The politics of brands is a heated debate within the Indian society as a result of many elderly people having heart related complications. It is therefore crucial that the Company improves on their technology through schedules of refinery


The positioning of the company with regard to gearing for market retention and brand establishment is succinctly achieved through the operational simulations, managerial potency that embraces the political and geographical challenges as well as the product specific mechanisms that retain the set of tastes and preferences desirable for the society. Branding strategy has to go beyond mere promotion. For such a widely consumed necessity as cooking oil, the brand has to attain the status of creating a culture if it is to survive. The strategy here therefore is for the top management and the marketing team to sustain a rapid campaign that shall ensure the attainment of the set of desirable goals of acculturation. Suffice it to say; efficient mechanisms of product improvement, research and development have to be carried out in tandem with the general strategy of the organization.


Questionnaire – Consumer Preference/Trend

Thank you for taking the time to consider our questionnaire. If at anytime you do not wish to answer a question please leave blank and move on to the next question.

  1. Gender
  • Male
  • Female


  1. Age Bracket
  • Up to 18
  • 18 – 30
  • 30 – 50
  • Over 50

30 – 50

  1. Do you use cooking oil in your household?
  • Yes
  • No


  1. Which brand of cooking oil (if any) do you use? (List in order of preference)
  1. Dalda
  1. Why do you prefer the cooking oil in (2) above?

Because it is readily available and affordable

  1. How often do you buy cooking oil in your house (if any)?
  • Daily
  • Weekly
  • After two weeks
  • Monthly
  • Other (Explain)

Monthly since it is economical to buy large quantities

  1. How much money do you spend on cooking oil per month?
  • 0 – 50
  • 50 – 100
  • 100- 200
  • 200 – 500
  • 500 – 1000
  • Above 1000

200-500 large quantities cost more but cheaper compared to small quantities though

  1. How willing are you to try out a different brand of cooking oil?
  • Very willing
  • Willing
  • Not Willing
  • Not Sure

Very willing for comparison purposes; I might find something better that what I normally use.

  1. How far do you get your cooking oil from?
  • Less than half km
  • Half km to 2 km
  • Over two km

Less than ½ Km away. There are many convenient stores around my area of residence


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