A PROJECT REPORT ONBUSINESS GROWTH STRATEGY

“ACE KLUB PROGRAM”

NISHANT SINGH(128938)

MBA II YEAR

CONTENTS

• COMPANY INTRODUCTION

• MARKET SHARE

• MARKET STRATEGY

• MARKET SEGMENTATION

• ACE KLUB PROGRAM

• DIRECT AREA COVERAGE

Started in 1892 with initial investment of Rs 275(Britannia Biscuit Company Limited)

Mechanized operation in 1921

1975,took over distribution from Parry’s (Britannia Industries Limited)

90 % of Britannia revenue come from Biscuit

Managing Director Mr. Varun Berry

Britannia Biscuits

Glucose

Cream

Cookies

Health Digestive

Tiger

Treat

Bourborn

Good Day

Pure Magic

Nutri Choice

Marie

MARKETING OF BISCUIT

Wholesale and Retail marketing in the Biscuit industry is carried out with a network of Dealers / Wholesalers and Retail shops

Market share data for Indian biscuit industry:Here are market share data for biscuit industry from report s available at IBMA( Indian Biscuit Manufacturers Association)

Major Market Share Holders – Organized Sector

% OF MARKET SHARE BRAND WISE (VOLUME)

PARLE

BRITANNIE

PRIYA GOLD

ITC

REST

INDUSTRY SHARE

BRITANNIA 40%

PARLE 38%

PRIYA GOLD 15%

ITC 11%

REST 6%

Category Britannia Parle Leader

Glucose Tiger Parle-G Parle –G

Marie Marie Gold Parle Marie Marie Gold

Salty snacks 50-50 Krack Jack Krack jack

Choco chips Good day Hide n seek Good day

Milk Milk bikis Milk sakti Milk bikis

Bourbon Bourbon Hide n seek Bourbon

Nice Nice ----------------- Britannia Nice

Multi grain Nutri choice ------------------- Nutri choice

Cream Cream Treat Kreams Cream treats

Cookie Good day 20-20 Good day

IMPORTANT BRANDS PITCHED AGAINST EACH OTHER OR PRODUCT COMPARISION

So the battle for market share continues and advantage is for consumers who will get better product from both these biscuit majors

Market Share - Sector wise Market share penetration-Population wise

ORGANISEDSECTOR

UNORGANISEDSECTOR

70% 30%

Market Share – product wise

Marie and Glucose 50%

sweet, crackers , cream ,milk

50%

Market share - Region wise:Market share of the industry in India as per region

ZONE % CONTRIBUTION

NORTH ZONE 25%

WEST ZONE 23%

EAST ZONE 28%

SOUTH ZONE 24%

URBAN RURAL

85%-75% 65%-55%

Annual Production

0

5

10

15

20

25

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

PRODUCTION (In lakh metric tonnes)

14.2916.14

17.4418.25 19.1

MARKET SEGMENTATION

NICHE -

BEHAVIORAL -Benefits User

Status

Usage

Rate

DEMOGRAPHIC -Age Income

Target Markets

REGIONAL SALES

MANAGER

SALES AND OPERATION MANAGER

AREA SALES MANAGER

TERRITORY SALES

INCHARGE (4-5)

SALESMEN (10-12)

AREA SALES MANAGER

TERRRITORY SALES

INCHARGE (4 –5)

SALESMEN (10-12)

SALES TEAM STRUCTURE

SALES AND DISTRIBUTION STRUCTURE

SYSTEMS TO BE FOLLOWED AT BRITANNIA

AW PLAN

PJR (PRE JOURNEY PLAN)

UDDAN

UDDAN SOFTWARE

Three areas to consider

1

2

3

BIL FOCUSVALUE

TARGET

VISIBILITY IMPACT

CLASSIC(15K-30K)

PLATINUM(30K-59K)

TITANIUM(59K>)

Visibility

ImpactRs 500/- Rs 1000/- Rs1500/-

BIL Focus .5 % 1.0 % 1.0 %

Value Target 1.0 % 1.5 % 1.5 %

OBJECTIVES

• Provide daily report

• To analyze the various parameters which play important role and affect the program

To identify that whether merchandiser visit to respective outlets as

per their schedule or not

To ensure that retailers got their payouts on time.

To examine the condition of Window display ( with regards to total

number of lines as well as visual appearance)

To make aware the retailers about PROGRAM if they don’t know

.

To search new areas which are still not identify by the company.

To solve out the problems arises by retailers and discuss it with distributers.

SOURCES OF DATA

Primary

Secondary

SAMPLE SIZE

100 respondents

SAMPLING TOOLS

Questionnaire

Personal Interview

Target Awareness

84%

16%Target awareness

Mandatory for the retailers to keep the target sheet

Awareness about the monthly target

Based on previous month achievements.

Necessary to fulfill the parameters of ACE program

Trained sales man on regular basis

Giving order randomly

Payout Details

82 %

18 %got payout

Did not get payout

Must full fill all 3 parameters

Payment adjusted in next bill rather than in cash

Maximum of the retailers were not satisfied.

Reimbursement on quarterly basis

Full filled value target

Window Display

0

10

20

30

40

50

60

70

80

Attractive window display Poor window

73 %

27 %

Focus brand of the quarter

Number of facings, placement on shelf and

the nature of shelf itself is equally important.

To compete with ITC farmlite.

Role Of Merchandiser

0

20

40

60

80

Visit as per schedule

Not any specific time

68 %

32 %

Ensuring that products appear in the right store, atthe appropriate time and in the correct quantities.

Maintaining window, arrange showcases,

counters and display fixture on a day-to-

day basis

visit next day after salesman deliver products

Feedback form with each retailers

Previous Month Target Achievement

0 20 40 60 80

Target Achieved

Target not Achieved

72 %

28 %

Target Achieved

Target not Achieved

Maximum have problem with target

Fixed according to previous performance

Lack of awareness is major reason

Company issue two forms

DIRECT COVERAGE EXPANSION

PLACEMENT OF DAIRY PRODUCTS

Higher cost in comparison to other

Scope is good because of BRAND name

SUGGESTIONS

The clause of the ACE KLUB should be made clearer to the retailers,

since few of them aren’t aware of them

The merchandizer should be able to convince the retailers to maintain

the window display and not let other brands to be displayed in this

window

Company should reimburse payouts in cash rather than adjust in bill.

A daily attendance record to be maintained for salesman at the AW point

regarding total number of outlets covered on that day because sometimes

salesman don’t bother to go to market instead take order on the mobile

Tracking should be undertaken for retail outlets also. This would help to ascertain outlets where are

stocks are not moving and also help to understand the stock trends for particular routes.

Perform a detail demand survey at regular interval to know about

the unique needs and requirements of the retailers.

The company should make hindrance free arrangement for its

customers/retailers to make any feedback or suggestions as and

when they feel.

A strong watch should be kept on distributors so that the goodwill

of the BRAND doesn’t get affected

Some new areas discovered were too huge, so the distributor can

make a whole new beat for this area.

The salesmen can be given extra training on customer relation

skills. This will enable them to win trust of the new retailers and

make them regular company customers.

At some points the distributors were not willing to add the new area

under their beats. For this company can give better incentives to

them and make them aware about various benefits

At a few distributor points, there is a shortage of vehicle for ready

stock, this delays the supply, and for this the company can make a

mandate to the distributors to maintain certain number of

permanent vehicles for supply.

The company can give free merchandizing to these outlets.

Retailers always seek for profit making deal from thecompany. That’s why company can’t force retailers to keeptheir product only. Carrying out relevant sales promotionalactivities can increase biscuits demands and thus increasein sales. An attempt made by Britannia to increase theirbusiness and sales by ACE KLUB PROGRAM justify thegoal of the company in business growth. This study hashelped to gain good experience and more informationabout the various attribute which support the program.

CONCLUSION

REFRENCES

Confederation of Indian Industry [online]:

http://www.cii.in/About_Us.aspx?enc=ns9fJzmNKJnsoQCyKqUmaQ== [02:00 pm 8th April 2014

Indian Biscuits Manufacturer’s Association ;http://www.ibmabiscuits.in/site-map.html [08:00 am 5th

April 2014]

Federation of Biscuit Manufacturers of India: http://www.biscuitfederation.com/indus_profile.htm [

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