Business Plan for Animal feed

1. Marketing Plan of
Animal Feed
(Summerkool) for
Godrej Agrovet
Submittted By
Pankaj K Bhaisare

2. Introduction
 Godrej Agrovet Limited (GAVL) is a diversified agribusiness
company
 FY2011-12 sales of Rs. 2439 crore
 GAVL's Animal Feed business was started in the year 1972.
 The Animal Feed business is India’s largest, producing over
9,57,000 tons annually of high-quality feed and cutting-edge
nutrition products for dairy cattle, poultry & aquaculture.
 Today, the business has 40 production units across the
country and more than 22% market share in the compound
feed market.
 But now it want to enter in customize feed supplement
business for cattle feed and developed Summerkool feed in
power form packed in 1 kg pack.

3. Current business situation
 Financial results
 Its total income from
animal feed during year
2011-12 is Rs 1748 crore
as compared to Rs 1293
crores in 2010-11
 Animal Feed Sales
increased by 35.2% since
FY2010-11

4. Cont’d….
 Sales figures and trend
• Animal Feed Sales increased
by 35.2% since FY2010-11
•Feed sales volumes increased
by 17.8% since FY2010-11
•Return on Capital Employed
(ROCE) for FY2011-12 was
337%
•Volume growth realized
across all categories and
region
•New feed mill capacities
coming online across India
Ref: Godrej Industries Limited / Investor and Analyst Meet presentation | June-07-2012

5. SWOT Analysis:
 Strength:
 Brand Name
 Strong investment capacity and
financial position
 Skilled employees
 20% market share in Feed
industry.
 40 well equipped production
units
 More product range in product
line.
 Cost Advantages
 Weakness:
 Lack of R&D investment
 Focus on Product
 Opportunities:
 Acquisitions
 Emerging markets and
expansion abroad
 Product and services
expansion
Threats:
 Lower cost of
competitors product
 Maturing products
 Product substitution
 Fluctuation in Milk
Prices

6. Competitors analysis: Porters five
forces
Rivalry:
 Existing Competitors:
Cargil International,
Hindustan Animal
Feeds, Pfizer Animal
Health India Limited
and many local players.
 More competition
from rivalry.
 Threat of New entrant
 High
 Customer can switch
 Government
regulation is less
 Low production
cost
 Threat of substitute
 High
 More alternative
products
available
 customer can
purchase low cost
products
 Bargaining power of
Supplier
 Low
 Many supplier for
raw material
 Contract farming
 Bargaining power of
buyers:
 High
 Many alternative
product available
 Switching cost for
buyer is less

7. Marketing Strategy
 Mission statement
“We are fully dedicated to producing , selling and serving
livestock farmers by providing the most advanced best
nutritional supplement products throughout life.”
 A vision statement
“ Being leader in animal feed market in India by providing
best quality feed supplements which helps to gain trust among
consumers.”
 Objectives
 Our goal is we want to achieve sales target of Rs 4000
crore in year 2015.

8. Strategy for Growth: Summerkool in
Ansoff Matrix
Existing Product New Product
Existing Market Market Penetration Product development
New Market Market development Diversification
Product development strategy :
 Summerkool is new fully innovative cattle feed Supplement
product in existing market which helps to reduce heat stress
and minimizes decline in milk during summer.
 It contain proteins 30 gm, Metabolizable energy 1200 kcal,
Sodium 130 gm, Potassium 25 gm, Fat soluble vitamins 2500
mg and water soluble vitamins 50000 mg in 1 kg.
 Product is different from other product and have unique
composition so there is more demand for product.

9. The Marketing Mix
 Product:
 Summerkool with unique characteristics sale in Summer to
increase milk yield in cows and buffaloes.
 Premium product, disposable with high demand in
Summer i.e. fast moving during season.
 It is packed in 1 kg plastic bottle with attractive cover
design.
 The ingredient and it composition as well as how to use
and relative precaution also mention on cover.
 We developed this product because in milk yield of animal
reduces by 10 -25 % and conception rate due to heat stress.

10. Cont’d…
 Price
 Skimming pricing strategy will be used.
 No product similar to Summerkool available in the market
and it is seasonal product.
 Premium product and new in market
 Place
 The product will be sale through dealers network to the
agri-input retail shops and through sales executive to
target the dairy co-operatives.
 High product margin to dealer and retailers.
 Guide retailer about the display of product in the shop.
 Sale product in All the major milk producing states in
India.

11. Cont’d….
 Promotion:
 Get high milk yield and good animal health in summer ….
Use Summerkool …… improve productivity…better
return
 Advertise channels: TV, News Papers, Dairy Magazines,
mouth publicity and leaflets by distributor , dealers and
retailers.
 Demonstration campaign at reputed co-operative dairy
farm.

12. Segmentation, Targeting and
Positioning
 Segmentation:
 On the basis of geography: North, East, West and South
 Organized and Unorganized
 Dairy farmers: Small ( 3 animals), medium (4-10 animals) and large
(more than 10 animal).
 Targeting: In all geography location through established local
distribution network of a company target organized medium and large
dairy farmers and dairy co-operatives.
 a network of over 10,000 distributors, dealers and C&F agents

13. Cont’d…
 Positioning:
 Positioning as premium product which helps to reduce
heat stress and minimizes decline in milk during summer
because heat stress can be costly to the dairy farmer.
 The unique product in market used in summer to reduce
unexpected milk decline and to keep animal healthy.
Use Summerkool….. Keep animal healthy…. Increase
milk yield……get benefited by trusting on us.

14. Thank You….