suguna revisied 1

8/3/2019 Suguna revisied 1

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RURAL POULTRYRURAL POULTRY

MARKET FOR SUGUNAMARKET FOR SUGUNA



COMPASS«COMPASS«

y

COMPASS«

INTRODUCTION

CORE BUSINESS ACTIVITIES OF SUGUNA

EVOLUTION OF BRANDED POULTRY PRODUCTS

CURRENT CHALLENGES IN BUILDING BRAND

COMPETITIVE POSITIONING

POSSIBILITY OF SUGUNA TO ENTER INTO RURAL INDIA

SUGGESSIONS FOR BRAND BUILDING TOOLS



INDIA-

y Largest livestock population in world.

y Contribute 4% to national GDP & 27% to agriculture

GDP.

y Poultry industry has been the key contributor in

livestock sector.

y Total poultry industry- 200billion.

y Production- 2.3million ton meat & 47 billion eggs.

y Produces 2 billion poultry birds on 200000 farms.

y India is the 3rd largest egg producer and 5th largest

poultry meat producer in the world.

y Eggs and broilers has been rising at a rate of 8 to 10 per cent per annum.

(According to Ministry Of Agriculture, GOI)



y Started in 1984 in Coimbatore(Suguna poultry f arm ltd)

y Annual Turnover 2030 crore

y Present in 11 states with 15,000 + f armers,

25,000 channel partners & 4,800 employees

y More than395million chick ens produced per annum

y 36 hatcheries and 50 f eed mills.

y 1.56 million tons f eed production per annum

y Suguna stands 1st in broiler production in India

(and 4th in the world by volume).

y MD- Mr. B Soundararajan



PRODUCT LINEPRODUCT LINE Live chick en

Frozen & chilled chick en (Brand Suguna

ANYTIME)

Special f ortified eggs (Suguna HEART,ACTIVE,

SHAKTI, PRO)

Ready to cook chick en (Suguna Daily Fressh )

Home Meal Replacement f oods (Suguna

Home Bites )



EVOLUTION OF BRANDEDEVOLUTION OF BRANDEDPOULTRY PRODUCTSPOULTRY PRODUCTS



TTraditionalraditional systemssystems

(1970(1970--1980):Unbranded1980):Unbranded

y Typically ref erred to as a "back yard business.µ

y Farmers invested minimal resources in poultry production.

y Local Mark eting of poultry products

y No commercialization of poultry products

y No institutional financing f or poultry production

y No awareness about hygiene of the f eeds



Brooding Unload from Car Grading of Chicken before

Marketing

Live chicken Marketingdoor to door

Live chicken Market

Floor Rearing Broiler Sales Centre



SemiSemi--commercial systemscommercial systems

(1980(1980--1990)1990):: Partly brandedPartly brandedy Improved local breeds and cross-bred stock were

grown.

y

Most of production were sold to nearby urban centres:(a) Without formalized system of marketing(b) In a few cases, oral contracts (with hotels or restaurants)

y Establishment of a number of poultry estates incollaboration with the Government initiated agencies

like NCDC and NABARD



Commercial systemsCommercial systems

(1990(1990--till now):Fully brandedtill now):Fully brandedy Commercialization of poultry products

increased. y Through organized retail sectors started

mark etingy All poultry industries entered in the rural

mark et by conducting diff erent campaigns

y International exposure

y Urbanizationy Increased automation



SugunaSuguna MilestonesMilestones

y 1984- Suguna Group was f ounded

y 1991- Introduced new concept of

Franchise Farming in India

y 1998- First automatic meat processor

unit with cold storage

y 2001- Expansion of operation in

othe states than Tamil nadu



y 2006- Successf ul implementation of

oracle ERP systems

y 2007- Asian Livestock Industry Award

y 2007- Daily f resh and suguna value

added eggs launch

y 2008- Convenience f oods launch



COOLCOOL

A requirement signed into American law under Title X of the f arm security and rural investment act .This law requires retailers provide country-of-originlabelling f or f resh beef, chick en, pork, and lamb.The program exempts processed meats.The united states

congress passed an expansion of the COOL requirements on 29 September 2008, to include more f ood items such as f resh f ruits, nuts and vegetables.

COOL Best Management Practices for Supplier s

1. LABELLING

2. RECORD KEEPING



CHALLENGES IN BRANDCHALLENGES IN BRANDBUILDINGBUILDING



Challenges in BrandChallenges in Brand

BuildingBuildingQuality issues: Adoption of f ood saf ety

and quality assurance mechanisms such as

TQM including ISO 14000, ISO 22000,

HACCP, GMP, GHP and preparing them to f ace global competition in post WTO

regime.

Lack of education and awareness in

consumers of rural India: They cannot

able to diff erentiate the brands



*Cont«

Brand stickiness: Consumer in rural India is

satisfied with the brand he uses, then he is

reluctant to change that brand . Moreover,

rural consumers are still deriving the core

benefits of the brand and not the peripheral benefits of it.

Higher cost of production:



Contd«Contd« Bird flu & chick mortality.:

-Due to these health related issues it is very difficult to build a brand in rural india.

Well established brands.

Entry of new players in the industry such asGodrej and Pioneer.

Local vendors.



Aff ordability Aff ordability

y Products must be aff ordable and

immensely practical. Furthermore, since

the rural consumer of ten survives on

daily wages, he engages in daily purchases.



Quality Quality

y For rural consumers, a purchase is a

bigger investment than it is f or the urban,

veteran consumer. Hence, a particular

brand will be rewarded only if it earns the rural consumer·s trust through consistent

product quality.



COMPETITIVE POSITIONINGCOMPETITIVE POSITIONING



Main CompetitorsMain Competitors

y Vencobb (Venkateswara Hatcheries)

y Pioneer

y Shanti

y JAFA

y Arambagh

y Skylark



Porter·s AnalysisPorter·s Analysis

Threat of new entrants Low

Bargaining power of the buyers High

Bargaining power of the supplier Low

Threat of substitutes Low

Competitive Rivalry Medium

OVERALL Medium to low



CONTRACT FARMING

Vertical Integration

Ver tical Model of SCM

(Suguna poultry)

Supplier

(Supplied feed, chicks)

Production(Supervised

production practices

& medical care)

Marketing



Value Added ProductsValue Added Products

y Poultry mark eting through egg and broiler carts .

y Egg labeling and pack aging stations.

y Egg processing f or value addition ² Suguna Heart,Suguna Active, Suguna Pro, Suguna Shak thi.

y

y Poultry meat processing plants of diff erent capacities.

y Providing value added products f or companies in other sector ( Agri input,Airline, Pharmaceuticals)



Organizational integrityOrganizational integrity

y Strong integrity within the organisation by

Evolving strategic f ocus.

Innovation & R&D.

Unmatched brand portf olio.

Versatile distribution network .

Strong local talent based.

Best management practices.



Entry into retail n ConvenienceEntry into retail n Conveniencefood Sectorfood Sectory Suguna has entered into f ront end retail by

launching Suguna Daily Fresh retail outlets

which involves hygienic and standard pack aging.

y Suguna off ers HOME BITES- a range of ready to

cook & ready to eat chick en products.



RURAL MARKET FOR RURAL MARKET FOR

SUGUNA SUGUNA

Attractions and Challenges



AttractionsAttractions

y Chick en consumption is not having a

religious taboo as beef or pork .

y Increasing rural population with high

consumption of chick en in youth.

y Price less than mutton.

y The NECC has considering an average

growth of 10% and 15% f or egg and broiler industry respectively.



AttractionsAttractions

y Increasing brand awareness among rural

people

y Purchasing power of rural f olk is

increasing

y The traditional pattern of rearing hen has

decreased in the last decade.

y Health and saf ety aspects of poultry products are growing within the rural

people.



Problems of SUGUNA to enter into Problems of SUGUNA to enter into

the Rural Mark et«.the Rural Mark et«.y Products of own region are pref erred to

products with unknown origin.

y Rural consumers willing to pay more f or

a product of the own region than f or products with an unknown origin.

y Rural pref erence is higher f or f resh

products than f or preserved products.



SUGGESTIONS SUGGESTIONS



y Proper use of promotional mix to reach

the rural consumers.

y Improvement of proper MIS to find the

f ak e retail outlets in the name of Suguna.

y R & D f or developing disease resistant

breed of chick ens and early maturity.

y They can mak e f ranchisees with the local outlets in the rural mark et.



y Rural people can get diversified products

of chick en f rom Suguna.

y Currently Suguna is in 12 states in India

and can expand to the remaining states.

y Usage of desi breeds to attract more

rural consumers.

suguna revisied 1

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