Chocolate.doc

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CERTIFICATE

The project report titled Product Profile on

Chocolate" Prepared by Aman Patkar, under the

guidance and supervision of Mr. Ajay Dwivedi

(Lecturer OF M.B.A. Deptt. Of S.S.H.C. JAIN I.M.R.)

for the partial fulfillment of the degree of Master ofBusiness Administration is satisfactory in respect of :-

Comments By Supervisor Head of

Deptt. Examiner

1. Contents and presentation

of the subject matter

2. Language

3. Embodies the original work

of the candidate.

4. Submission within due date

Signature of Examiner Signature of

Supervisor


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Signature of H.O.D.

DECLARATION BY CANDIDATE

I declare that the project report on Product Profile

on Chocolate" is my own work, conduct under the

supervision ofMr. Ajay Dwivedi(Lecturer OF M.B.A.

Deptt. Of S.S.H.C. JAIN I.M.R.) Affiliated to Dr. Hari

Singh Gour Central University, Sagar .To the best of my

knowledge the report does not contain any work which

has been submitted for the award of any degree,

anywhere.

Signature of the Candidate

Aman Patkar

MBA 1st Sem


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ACKNOWLEDGEMENT

I would like to pay my sincere thanks to Mrs. Parul Guru

Head of the MBA Dept., S.S.H.C. JAIN I.M.R. Sagar for

providing me the opportunity of doing the project report.

I would to express my deep sense of gratitude to Mr. Ajay

Dwivedi Lecturer of the MBA Dept., S.S.H.C. JAIN I.M.R.

Sagar for his valuable guidance, advises, Cooperation &

Constant encouragement during the project preparation. He is

very supporting and without his help I would not have completed

my project report successfully.

I express my heartful thanks to Mr. Sumit Rathore, Mr.

Sanjay Khare, & Miss. Garima Chourasia and to the staff of

S.S.H.C. JAIN IMR., Parents and friends for their kind support and

suggestion.


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I am very thankful to retailer and customer whom I had

approached for collection of necessary data and who give their

valuable time and comments, which were the inputs for my

survey.

Date: Aman

Patkar

Place: MBA 1st

Sem.

PREFACE

The project report has an objective to get the MBA

student familiar with real life business situation and gives

an opportunity to the student of understand the

theoretical concepts of marketing and finance in practical

way.

In todays world Consumer is the King consumer

test and preference go alone way in the actual sales of

the product. Every research work has to deal with various

people in concern organization and each of them have

their own opinion and thinking about various topics.


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The main aim of the survey report was to determine

the Product Profile on Chocolate"

I tried my best to express the report throughsatisfactional representation, graphs, pie diagrams etc.

and it helped me to enhance my knowledge I am

extremely happy to place before our esteemed teachers.

EXECUTIVE SUMMARY

I did my summer project in lotte india corporation ltd MP. an attempt was made to study oncompetitive analysis of confectionary industry. The data was collected from city,i.e. Sagar andSurrounding Area of Sagar.

In my two months summer training I got field experience like interacting with different tradeperson in these two cites and to know about the market share of the company in theconfectionary market, how our company tackles with its competitor.

After the summer project I feel very energetic and enthusiastic as every part of it is filled withexperience and learning. My summer internship project has increased my confidence levels andunderstands how professional life is to be maintained. An important lesson learnt is how to dealwith the customer and convince them.

My visit to different areas made me to develop my contacts and know about different types ofcustomer, understand the market conditions& other skills developed by me are convincing customers through different modes.

My summer project in Lotte India high lighted that if a person in order to be successful shouldcarry the ability to learn new things with the changing environment and this was inspired by thecompany in which I completed my summer project.


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Objectives:-

The objective of the study was to understand different market share and different market strategytaken by the different confectionary company in the competitive market.

Scope of the study and limitation:-

The study area includes 2 cities identified as per the hydrological boundary i.e. Sagar andSurrounding Area of Sagar .and the lack of time period,i.e. the shops are closed after 12 o clockand reopened at 5 o clock, so there is no much time to visit more and more retail counter.

METHODOLOGY:-

To accomplish this project successfully, data is collected from different sources, like marketsurvey and from different confectionary distributers,and also from different confectionarycompanys sales officer.

Table of Contents

CERTIFICATE.................................................................................................................................i

ACKNOWLEDGEMENT..........................................................................................................iii

Table of Contents............................................................................................................................vi

their Commitment......................................................................................................................11


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INTRODUCTION:-

CHAPTER-1

1.1 A BRIEF HISTORY OF CHOCOLATE:-

Confectionery history has a record of at least 4000 years, When Egyptians displayed theirpleasures on papyrus. Sweetmeats were being sold in the market place in 1566 BC.Yet chocolatedid not appear on the scene until the ancient Aztec and Mayan cultures discovered the value ofcacao plant. It is reputed to have originated in the Amazon or Orinoco basin.

Mayans and Aztecs took beans from the cacao tree and made a drink theycalled xocoatl.Aztec Indian legend held that cacao seeds had been brought from paradise andthat wisdom and power came from eating the fruit of the cacao tree.

The word chocolate is said to derive from the Mayan xocoatl;cocoa fromthe Aztec cacahuatl.The Mexican Indian word chocolate comes from a combination of theterms Choc (foam) and atl (water);early chocolate was only consumed in the beverage form. Aspart of a ritual in twelfth-century Mesoamerican marriages, a mug of the frothy chocolate wasshared.

Chocolate was first noted in 1519 when Spanish explorer Hernando Cortez visited thecourt of Emploror Montezuma of Mexico. Prince Alberts explosition in 1851 in London was thefirst time the united states was introduced to bonbons, chocolate creams, hand candies i.e. calledboiled sweets and caramels. Daniel Peter of Vevey, Switzerland, experimented for eight yearsbefore finally inventing a means of making milk chocolate for eating in 1876.he brought hiscreation to a Swiss firm that today is the worlds largest producer of chocolate: Nestle.

Chocolate is created from the cocoa bean. A cacao tree with fruits pods in various stages ofripening.

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http://en.wikipedia.org/wiki/File:Cocoa_Pods.JPG


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Chocolate comprises a number of raw and processed food produced from the seed of the tropical

cacao tree. The seeds of the cacao tree have an intense bitter taste and must be fermented to

develop the favour.chocolate contains alkaloids such as the bromine and phenethylamine,which

have physiological effects on the body. Dark chocolate has recently been promoted for its health

benefits, including a substantial amount of antioxidants that reduce the formation of free radicals.

Chocolate has become one of the most popular flavors in the world. Gifts of chocolate molded

into different shapes have become traditional on certain holidays: chocolate bunnies and eggs are

popular on easter.chocolate coins on Hanukkah, Santaclaus and other holiday symbols on

Christmas, valentines day, independence day, republic day, marriage party, marriage

aniversery.chocolate is also used in cold and hot beverages to produce chocolate milk and hot

chocolate.

Chocolate market in India :

The size of the chocolate market in India is about 4000 tones and is valued at rupees 6500million.cadbury india has the biggest share at 40 percent while nestle is the second largest at 20percent.

Now a days many multinational chocolate companies are interested for business expansion inindia,just like lotte,Wrigley,perfetti etc.we will discuss about them very briefly in followinglines:-

1.2 LOTTE:-

At the heart of the corporate purpose, which guides us in or approach to doing business, is the

drive to serve consumers in a unique and effective way.

It is a story born in the age of British raj. When children in India found confectionary hard to

come by. It had to be imported from across the seas until the year 1914,when parrys picked up

the gauntlet and pioneered the manufacture of sweets- the first to do so in the country .parrys

sweets went on to become a household name a name that people recollect with warmth and a

smile. ever since, the parrys factory was set up in Nelikuppam,in the cuddalore District of

Tamilnadu in South India. parrys has become synonymous with sweets and confectionary .with

the penchant we Indians have for sweets is not surprising that this smooth ,milky and irresistibly

delicious confectionary is the best gift any child could get. and an obsession with quality ensured

that children had a choice of nothing but the best in confectionary.

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http://www.lotteindia.com/index.html


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In the nine decades since, the scenario has undergone a dramatic charge. There are a

number of offering in the market today, each wooing children, changing, adapting and growing

with the times but never losing sight of its values traditions and ethics. At the turn of this

century, parrys is poised on the threshold of greater challenges in a global village, wheredynamism and innovation is the very law of survival.

In the backdrop of India joining the WTO,and the global giants eyeing the Indian market with

enthusiasm,the company needed to strengthen it self and broaden its base to delight customers

across the country and abroad. With this vision in the mind,Murugappa group, promoters of

parrys confectionary limited ,south korea,by which the entire shares which Murugappa group,

the founders of parrys confectionary limited a south Korean multinational giant .

Lotte confectionary is the first company of the lotte family of companies founded by Mr. Shin

Kyuk-ho.the three Ls in the Lotte Emblem stand forLove, Liberty and Life. The corporate

philosophy and idealism of lotte is driven by dream of world full of love win here people care for

each other and respect each others thoughts. The lotte group has presence in food and

beverages, distribution, tourism and leisure business ;heavy chemicals ,construction and

machinery ;information ,communication and electronics ,trading and services apart from welfare

research and support services. The lotte confectionary co.ltd. is the lotte groups flagship

company in foods and beverages category.lotte confectionary,korea ,was established with 500

employes in 1967 and today it has more than 6000 employees. It has over 500 products produced

at 5 large-scale plants in korea.lotte has been actively working towards establishment of overseasbranches ,production facilities and has a presence in more than 70 countries .lotte

confectionaryannual sales are over than USD 900 millions apart from korea ,lotte has overseas

investments in production facilities in China ,Philippines ,and Vietnam.lotte confectionary main

line products are (chewing gum(lotte xylitol,lotte juicy & fresh,lotte spearmint,lotte fresh

mint,flavono,white & E,spout case coffe),candy,biscuits,chocolates,snacks,ice cream and health

care products. If the decades past are any indication ,there is little doubt that even in the coming

century ,children grow up with the brands parrys has established .The catalog of lottes product

are given below:-

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Then we will discuss about another MNC company i.e. WRIGLEY.

1.3 WRIGLEY:-

Wm. Wrigley Jr. Company is a recognized leader in confections with a wide range of product

offerings including gum, mints, hard and chewy candies, lollipops, and chocolate. The company

has operations in more than 40 countries and distributes its world-famous brands in more than

180 countries. Wrigley is headquartered in Chicago, Ill., and operates as a subsidiary of Mars,

Incorporated, a private, family-owned company founded in 1911. Mars, Incorporated is one of

the world's largest food companies, generating global revenues of $30 billion annually and

producing some of the world's leading brands in six segments that include Chocolate, Drinks,

Food, Petcare, Symbioscience and Wrigley

their Commitment

We are committed to preserving the heritage and values of the Wrigley Company. That doesn'tmean we don't change, adapt and innovate as time goes forward. It means that our values and ourculture of caring for our people and treating each other with trust, dignity and respect - or thesoul of our company must be nurtured. We also need to nurture the communities in which wework, and nurture our environment and broader, global community. The main brand of Wrigley

is boomer, and its catalog is given below.

1.4 THEN ABOUT PERFETTI:-

Perfetti van melle India subsidiary of the global conglomerate started operation in 1994.aconfectionary market with more than th of the value share of the market, takes care of thedevelopment of the south Asians markets and exports to the other Asians countries, with a basketof 13 main brands, the company strives to leverage the international brand portfolio, while

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adopting flavors and blends to the local tastes, centre fresh was the first brand offering ,followedby big babol,and alpenliebe in 1995.

Perfetti van malle India has doubled its turn over and is today the undisputed market leader inthe Indian confectionary market.perfetti van malle exploded onto the Indian market way back in

1994 with a single brand ,centre fresh. When the gums category of confectionary stood at 40crores.in last 10 years, we have traveled from having a single brand to having 14 brands today. Ithas the largest distribution network among any confectionary company in India.

Their vision:-

it will enhance its world leadership in confectionary by creating value for people throughdelightful and imaginative high quality products.

Their mission:-

To develop, manufacture and market high quality and innovative products for their consumersthrough efficient use of their resources and in partnership with their customers. And to create afulfilling workplace for their employees built on trust ,mutual respect and appreciation of theirdiversity.

1.5 ITC:-

ITC is one of India's foremost private sector companies with a market capitalization of nearly US$ 14 billion and a turnover of over US $ 5 billion.* ITC is rated among the World's Best BigCompanies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine,

among India's Most Respected Companies by Business World and among India's Most ValuableCompanies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands',in a study conducted by Brand Finance and published by the Economic Times. ITC also ranksamong Asia's 50 best performing companies compiled by Business Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging,Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel,Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is anoutstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards,Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses ofPackaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to bededicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "acommitment beyond the market". In his own words: "ITC believes that its aspiration to createenduring value for the nation provides the motive force to sustain growing shareholder value.ITC practices this philosophy by not only driving each of its businesses towards internationalcompetitiveness but by also consciously contributing to enhancing the competitiveness of thelarger value chain of which it is a part."

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ITC's diversified status originates from its corporate strategy aimed at creating multiple driversof growth anchored on its time-tested core competencies: unmatched distribution reach, superiorbrand-building capabilities, effective supply chain management and acknowledged service skillsin hoteliering. Over time, the strategic forays into new businesses are expected to garner a

significant share of these emerging high-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of thecountry's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness byempowering Indian farmers through the power of the Internet. This transformational strategy,which has already become the subject matter of a case study at Harvard Business School, isexpected to progressively create for ITC a huge rural distribution infrastructure, significantlyenhancing the Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is

aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing.

ITC's production facilities and hotels have won numerous national and international awards forquality, productivity, safety and environment management systems. ITC was the first companyin India to voluntarily seek a corporate governance rating.

ITC employs over 25,000 people at more than 60 locations across India. The Companycontinuously endeavors to enhance its wealth generating capabilities in a globalizingenvironment to consistently reward more than 3,60,000 shareholders, fulfill the aspirations of itsstakeholders and meet societal expectations. This over-arching vision of the company is

expressively captured in its corporate positioning statement: "Enduring Value. For the nation.For the Shareholder."

THEIR VISION:-

Sustain ITCs position as one of Indias most valuable corporation through one class

performance, creating growing value for the Indian economy and the companys stakeholders.

THEIR MISSION:-

To enhance the wealth generating capability of the enterprise in a globalizing environment,delivering superior and sustainable stock holder value.

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1.6 NUTRINE:-

Nutrine Confectionary Company was founded in 1952 by Shri. B. Venkatarama Reddy, a

Graduate from National University Adyar. The Chancellor of this University then was Shri.

Rabindranath Tagore, a Noble laureate. From a small scale unit, manufacturing only candies in

the early 60's Nutrine Confectionary Company has grown to be a multi product, multi market

giant and has been the single largest manufacturer of confectionary and toffees in India since

1980.

Nutrine has been the leader in Confectionary Industry in India for more than a decade, with an

unequalled range of 40 exciting products in Confectionary, which includes Aasay, Maha Lacto,

Kokanaka, Honeyfab, Nutrine Eclairs. With its dynamic and committed approach towards

product innovation and quality, Nutrine has set the trend in the Indian Confectionary Industry.

The Nutrine Group of Companies turnover is over 200 crores. The strength of Nutrine lies in its

strong Research & Development team, high standard of quality control, adoptation of state-of-

the-art technology and processes.

Nutrine produces its confectionary with a main factory at Chittoor and with conversion

arrangement in different strategic places. Nutrine enjoys high market share among the

organized sector in India. In order to consolidate its position as leaders in Confectionary

business, Nutrine had modernized and upgraded the plant capacity with the state-of-the-art

technology.

Nutrine has well equipped Research and Development Laboratory, where continuous product

testing and product development is organized and also it keeps on developing, depending on

consumers taste & preference.

In spite of severe competition from various other players in the industry like, Lotte, Nestle,

Ravalgaon, Parle etc. and in terms of unorganized sectors products & spurious products in the

market. Nutrine continues to hold its leadership and it strongly believes in the social

responsibility to give out the best product to the children of India and also involves into lot of

activities related to children through schools for betterment and shaping.

Then the products of nutrine are given below:-

Mahalacto is the brand name of Nutrine India Ltd.

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Before we distinguish in between two or more companies at first we have to concentrate on thesethings :

1.7 .We have to see how the margin percentage taken by distributers of lotte is high or othercompanys mode of payment of lotte in comparison to other companies. service quality given byevery company and many other things are taken to compare, these are given below.And lastly we distinguish in between lotte and its competitor .Table-1

LotteIndia

Wrigley perfetti Itc nutrine remarks

Marginpercentage takenby

distributer

6% 5% 5% 3% 4%

Mode ofpayment

Check,demanddraft,alsocredit

Check,cash,demanddraft, alsocredit


Check, cash,Demand draft,also credit


Preorderfacilities

yes Yes Yes Yes Yes

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availablehere ornotServicequalitygiven by

companyissatisfactory or not

satisfactory

Satisfactory Satisfactory Satisfactory Satisfactory

Salesman isgiven bythecompanyor by thedistributors

By thecompanyAndpersonal,both

It dependsupon thecoverage orvolume ofthedistributer

By thecompany

By thecompany

By thecompany

Howmanysalarygives thecompanyto thesalesman

Average 2000

3500+incentives+gift

3500+incentive+fuel

2500+fuel+incentives

2500+incentives

Salesreportdailywise orweeklywise

Dailywise

Daily wise daily wise Daily wise Weekly wise

Anycommunication inbetweendistributer andhigherexecutives

Yes Yes yes Yes yes

Top levelmanagementassociated withlow levelmanagement ornot

Yes Yes yes Yes yes

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Companygives anyoffer todistributers andalso to

retailer ?howoften

Mostlyno butsometime itgivesschem

e

Herefrequentlythecompanygives

frequently Regularly Regularly

If anyemployee dogood

job ,isthere anyaward forhim ornot

yes Yes yes Yes yes

CHAPTER -2

CHANNEL:-Manufactures normally use intermediaries for talking their products to the users. Theintermediaries bear a variety of names. All such intermediaries constitute the marketing channel.the manufacturers branch offices,depots,warehouses and showrooms too form a part of themarketing channel. Where institutional channels like chain stores, super markets,etc.are used bythe firm ,they too form part of the marketing channel .where institutional channels like chainstores ,super markets,etc. are used by the firm, they too form part of the marketing channel of

the firm.Channels play a pivotal role in marketing; they perform a number of vital distributionfunctions. their importance emirates form the functions performed by them.

Firms rely on the marketing channels for generating customers satisfaction andfor achieving differentiation over competitors. Channels are thus a vital source of competitiveadvantages for the firm.Type of marketing intermediaries:-

Sole-selling agent

Marketer

C&F agents (CFAs)

Redistribution stockiest

Stockiest/distributor/whole seller Semi-whole seller

Retailer/dealer

Franchisees

Authorized representatives

Commission agents

Jobbers

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We will discuss about the channel taken by these companies, how they distributes their productsin the market, mainly these channels are taken by every companies, they are given below;CFA, SUPERSTOCKISTS, STOCKISTSAnd theirs def.

CFA:-Manufacturers employ carrying and forwarding agents ,often referred to as C&F agents, or

CFAs.the CFA can be described as special category wholesalers. They supply stocks on behalf ofthe manufacturer to the whole sale sector. their function of distribution. Their distinguishingcharacteristic is that they do not resell products but act as the agent /representative of themanufacturer. They act on behalf of the manufacturer and his extended arm .so they aremanufacturers branch.

STOCKISTS:- A whole seller or stockiest or distributer is also a large operator but not on a level comparablewith a marketer or sole selling agent, in size resources and territory of operation ,thewholesaler /stockiest/distributers operates under the market sole sailing agent ,where such anarrangement is used by the manufacturer.

2.1 LOTTE-In coverage Lotte being covered not all over Orissa, it covers seventy percent of total state. thecompany target to cover the total state very soon. in stead of all these company is on growingstage. Total sale is comparatively appreciative.

CFA:-

LOTTE has only and one CFA who supplies to all the super stockiest and stockiest located inmain cities.

SUPER:-

Lotte has 10 number of super stockiest who are supplying stocks to the distributers for the restarea.

DISTRIBUTERS/STOCKISTS:-

LOTTE has 35 numbers of direct distributers and 86 numbers of sub distributers by the help ofthis, LOTTE can distributes its products very easily in all over the covered area. And it has 6modern trade ,by which it reach at the customer.

2.2 WRIGLEY:-In coverage Wrigley being covered in 85 percent area in whole Orissa., the company has not aexpected sale growth but it is in saturation stage.

CFA-

Wrigley has only and one CFA who supplies to all the super stockiest and stockiest located inmain cities.

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SUPER-Wrigley has 4 super stockiest who supplying stocks to the distributers for the rest area.


WRIGGLEY has 56 numbers of direct distributers and 222 numbers of sub distributors by the

help of this,Wrigley can distributes its products very easily in all over Orissa.

2.3 PERFETTI:-It covers in all corner of the state even if you will not get one single area where its products isnot available. It is the company which has full 100 percent area coverage in whole Orissa.

CFA:-

Perfetti has two CFA in all over Orissa by which perfetti can distributes his products in wholestate very easily.

SUPER STOCKIST:-

Perfetti has main 10 super stockiest in all over the state by which the products are easilydistributes to the distributers.DISTRIBUTERS/STOCKISTS:-

Perfetti has 100 distributers and 222 subdistributers in whole state.

2.4 ITC:-This company which is basically sailing cigarette, in chocolate it has not a variable range ofproduct. It has 4 to 5 chocolate range but it covers more than 70 percent across the state.

CFA:-

ITC has one CFA in all over the Orissa which helps to ITC to distributes its product in themarket.

SUPER STOCKISTS:-ITC has main 12 super stockiest in all over the state by which it reach at the retailer and alsocustomer.


ITC has more than 85 distributers and 150 sub-distributers in whole state by which it reach atthe customers.

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2.5 NUTRINEFormerly this company was Nutrine India ltd.Now it is take over by Goodrej harssey ltd.It has agood range of products but it is very poor in distribution. by the way it is covering 50 percentacross the state.

CFA:-NUTRINE has only one CFA in all over Orissa by which it distributes its products to thedistributers and also to retailers.

SUPER STOCKISTS:-

NUTRINE has main 8 super stockiest in all over the state.

DISTRIBUTERS/STOCKISTS:-NUTRINE has more than 50 distributers and 80 subdistributers in all over the states by which itreach at the customer.

2.6 This is the graph by which we can easily know that the reach of the different companies inthe whole Sagar market.

Table-2:-the area covered by these companies in whole Orissa in percentage.

Figure-1 Reach of the different companies in whole Orissa in percentage

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Company percentage

LOTTE 70%PERFETTY 100%

WRIGLEY 85%

ITC 70%

NUTRINE 50%


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CHAPTER -3AVAILABILITY:-

Put the product in every retail outlets is not a easy task. But some companies are much morepositive to fulfill this objective. Those who are satisfying this objective they have large marketshare in confectionary industry. So availability shows the companys strength, and awarenessand its brand equity.

3.1 LOTTE:-When we will discuss about availability lotte is on growth stage. Day by day awareness ofpeople increasing and we are able to see lotte products in many retail outlates.we will take 4products to analyze the availability of lotte.they are coffee bite, boopro, fruitz.lacto king.Table-3:- availability of different chocolates of Lotte in the market

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Figure 2:- availability of different products of Lotte

3.2PERFETTY:-

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Chocolates Availabilityinpercentage

Coffe-bite 47%

Lacto king 17%

boopro 27%

fruitz 20%


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This is the only company who has 100 percent availability in the market. Even if a single retailoutlet has one jar of confectionary and that jar is from perfetti. and that must aware brand ischloromint.for this purpose it has 100 percentage customer awareness. We will take 3 products toanalyze the availability of perfetti ,they are big babool,chloromint,alpenlibe.

Table 4:- availability of different chocolates of Perfetti

Figure 3:- availability of different products of perfetti

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chocolates Available inpercentage

bigbabol 24%

chloromint 71%

alpenliebe 25%


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3.3 WRIGLEY:-Even if the company has a strong brand likes boomer but it is unable to maintain 100 percent

availability. Customer awareness of boomer is very strong comparing to other brands. Thecompany is trying to increasing day by day. Then product detail.

Table 5:-Availability of different chocolates of Wrigley

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Chocolates ofWrigley

Availability inpercentage

Boomer 47%

Solano 5%


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Fig:-4 availability of different products of Wrigley

3.4 ITC:-Itc stands for Indian tabaco company. It has strong brand in cigarette but with the help ofcigarette brand, it sells its confectionary item in the market. And it is running in the market with3 or 4 brands, like minto-fresh, candyman,clairs.

Table 6:-Availability of different chocolates of itc

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Chocolate ofItc

Availabilityin percentage

Minto fresh 24%

candyman 39%


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Figure 5:- availability of different products of Itc

3.5 NUTRINE:-Even if the company has a strong brand like mahalacto but it is unable to reach at customer 100percentage. And it is running in the market with 2 or 3 products, just like mahalacto,

Table-7 Availability of different chocolates of nutrine

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Fig-6:- availability of different products of Nutrine

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Chocolatesof nutrine Availabilityinpercentage

Mahalacto 21%


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3.6 Analysis of availability :

In my summer internship I had surveyed 1118 retailoutlates in the twin cities i.e. Bhubaneswarand Cuttack and my survey was based on competitive analysis on five confectionary companies.In my survey I conclude that coffe bite is the product ofLotte india which has more availabilitythan other products of lotte.It has 47% availability in these two confectionary retail market whichis the lead brand of lotte india.I had surveyed in these two cities and lastly I concluded that coffebite is the demand brand in confectionary market of lotte india.similarly

In case ofPerfetti van malle,it has 3 brand products ,just like

bigbabol,chloromint,alpenliebe.from these 3 brand products chloromint is the most demand

product of perfetti ltd.it has 71% availability in these two cities which has the record availability

in the confectionary market rather than other demand product. In my survey period I analyzed

chloromint is the only product which has more potential customers in the market. By the demandof customers the retailoutlates are interested to stock the particular product., Which is a positive

point of perfetti ltd.

In case ofWrigley India pvt ltd it has a reputed and strong brand like boomer which builts theloyalty customers in between few days in the competition market. in this time other players arestrongly available in the market but its good market strategy builds it high. Its availability is only47% in these two cities but the frequency of selling is very high compare with any other brands.

Similarly Itc has not a good brand with a good frequency of sale. The companyputting the products by the influence of cigarette, any way it has also two reputed brand just like

mento-fresh,candyman.it also builts few potential customer by the help of high marketingstrategy just like it has a punch line of mentofresh i.e. dimag ki bati jalade,by the help of thisit attracts the customers towards it. So candyman is the product which has more availability inthe two cities i.e. 39%.now the company in growing stage in confectionary market.Lastly about Nutrine confectionary pvt ltd.which has few numbers of loyalty customer, it hasless availability in these two confectionary market. And it has a strong brand like mahalacto,butit cant built loyalty among the customer. It has a low availability in the market.

So different company has different market strategy ,by the help of this they improve them selvesin ascending order day by day. But we have to analyze in between them by the help of their most

branded product which have more availability in these two confectionary markets.

Now the tables of availability of different products of different companies are listed below:

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Table:-8Analysis of main brand products of different companies in twin cities

Now the graph will be

Figure:-7 analysis of availability of different companies brand name

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Products ofdifferentcompanies

Availability ofproducts inpercentage in twin

citiesCoffe bite 47%

Chloromint 71%

Boomer 47%

Candyman 39%

Nutrine 21%


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By the help of this we can analyze that chloromint is the brand which has more availability in

these two cities. Now we have to analyze the price of different products of different companies.

They are listed below.

CHAPTER-4

PRICE:-

Price is the one element of the marketing mix that produces revenue; the other elements produce

costs. Price are perhaps the easiest elements of the marketing program to adjust; product

features ,channels and even promotion take more time. Price also communicates to the market

the companys intended value positioning of its product or brand. a well-designed and marketed

product can command a price premium and reap big profits.

Traditionally, price has been the major determinant of a buyers choice. This is still the casewith large segment of buyers across the globe. Although nonprime factors have become quiteimportant in the last few decades, price still remains an important factors in determining sales

and profitability.

4.1 HOW COMPANIES PRICE:-

Companies do their pricing in a variety of walls. In small companies, price are often set by theboss. in large companies ,pricing is handled by division and product line managers. Even here,top management sets general pricing objectives and policies and often approves the pricesproposed by lower levels of management. In industries where pricing is a key factor. Companies

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will often establish a pricing department to set or assist others in determining appropriates prices.This department reports to the marketing department, finance department or top management.

Executives complain that pricing is a big headache-and one that is getting worse bythe day. Many companies do not handle pricing well. And throw up their hands at strategy

like this, we determine our costs and take our industrys traditional margins. price is not variedenough for different product items, market segments, distribution channels and purchaseoccasions.

Effectively designing and implementing pricing strategy requires a thorough understanding ofconsumer pricing psychology and a systematic approach to setting, adapting, and changingprices. Multinational face several pricing problems when selling abroad. They must deal withprice escation, transfer prices, dumping charges and grey markets. When companies sell theirproducts, they face a price escalation problem the company has to add the cost of transportation,tariffs, importer margin, whole seller margin and retailer margin to its factory price..dependingon these added costs as well as the currency fluctuation risk, the product might have to sell for

two to five times as much in another country to make the same profit for the manufacturer,because the cost escalation varies from country to country,the question is how to set the prices indifferent countries ,then companies have three choice,i.e. set a uniform price every where, set amarket based price in each country, then lastly set a cost based price in each country.

4.2SELECTING THE PRICING OBJECTIVES:-

The company first decides where it wants to position its market offering. The clearer a firmsobjectives, the easier it is to set price. A company can pursue any of five major objectivesthrough pricing: survival, maximum current profit, maximum market skimming or productquality leadership. These five things are given below:-

1.Survival:-companies pursue survival as their major objectives if they are plagued with overcapacity,intense competition ,or changing consumer wants, as long as prices cover variable costs andsome fixed costs ,the company stays in business. Survival is a short run objectives ;in the longterm run, the firm must learn how to add value or face extinction.

2.Maximum current profit:-Many companies try to set a price that will maximize current profits. They estimates the

demand and costs associated with alternative prices and choose the price that produces maximumcurrent profit ,cash flow ,or rate of return on investment .this strategy assumes that the firm hasknowledge of its demand and cost functions; in reality these are difficult to estimates .inemphasizing current performances ,the company may sacrifice long run performance byignoring the effects of other marketing mix variables, competitors reactions and legal restraintson prices.

3. Maximum market share:-

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Some companies want to maximize their market share. They believe that higher sales volumewill lead to lower units costs and higher long run profits. They set the lower prices ,assuming themarket is price sensitive ,The following conditions favor setting a low price:

(1) The market is highly price sencitives,and a low price stimulates market growth;

(2) Production and distribution costs fall with accumulated production experiences and(3) A low price discourages actual and potential competition.

4. Maximum market skimming:-

Companies unveiling a new technology favor setting high prices to maximize marketskimming.Market skimming makes sense under the following conditions;

(1) A sufficient member of buyers and have a high current demand.(2) The unit cost of producing a small volume are not so high that they cancel the

advantages of charging what the traffic will bear.(3) The high initial price does not attract more competitions to the market.

(4) The high price communication the image of a superior product.

in this way we can concentrate on the pricing of these five companys price of the each jar andeach case are listed below.i.e. one jar of lotte india.

CHAPTER-5MRP:-

MRP is the important factor in any industry, because mrp is directly proportional to customers

mrp varies according to the financial condition of the people. So the company should producesuch type of product with a reliable mrp which will be affordable by all the types of customers,then if mrp is an important factor but all companies are not aware of about that. They have notsuitable products to satisfying the need of every customer .here we will analyze about the priceof five companies ,in which affordable mrp they are able to sell the best with good market share.We will put in to comparison the total sale of the company with mrp variation in percentage.Then we first concentrate on the mrp of lotte india.

5.1 LOTTE INDIA:-Lotte has all the variety of chocolate with different types mrp.Lotte is selling with 0.25,0.50,rs-

1/,rs-2/,rs-5/,rs-10/ mrp chocolate in market but from total sale rs-0.50 mrp chocolate has40%market share,

Table:-9 Mrp in different range of products of lotte

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Figure:-8 Market share in percentage of Lotte

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Mrp in different range Market share in percentage

0.25 10%

Rs-0.50 40%

Rs-1/- 10%

Rs-2/- 05%

Rs-5/- 20%

Rs-10/- 15%

Total- 100%


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5.2 PERFETTI:-Similarly in case of perfetti india pvt ltd,it has all the variety range chocolate. It basically sells itsproduct in rs-0.50,and rs-1/-and rs-2/-,range of chocolate in the confectionary market. They arelisted below:

Table:-10Mrp in different range of products of perfetti

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Mrp in differentrange

Market share

Rs-0.50/- 80%

Rs-1/- 15%

Rs-2/- 05%

Total- 100%


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Figure:-9 Market share in percentage of Perfetti

5.3 WRIGLEY:-Similarly in case of Wrigley India pvt ltd,it has different mrp range .Wrigley is selling its productwith rs0.50/-,rs-1/-,rs-2/-,rs-5/-.the product of mrp rs-1/- is selling very high in the market. Thedifferent range of the product is given below:

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Table:-11Mrp in different range of products of wrigley

Figure:-10 Market share in percentage of Wrigley

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Mrp in different

range

Market share

Rs-0.50/- 05%

Rs-1/- 70%

Rs-2/- 10%

Rs-5/- 15%

Total 100%


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5.4 ITC:-

Itc is an another confectionary company it has the products which are in two range i.e. rs-0.50and rs-1/-.they are listed below:

Table:-12Mrp in different range of products of itc

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Fig:-11 -Market share in percentage of Itc

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Mrp of thedifferent products

Market share

Rs-0.50/- 60%

Rs-1/- 40%

Total- 100%


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5.5 NUTRINE:-It has the only and one reputed brand which is available in the market in the mrp of rs-0.50/-.itsmarket share are listed below.

Table:-13-Mrp in different range of products of nutrine

Fig:-12 - Market share in percentage of Nutrine

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Mrp of the product Market share

Rs-0.50/- 90%

Rs-1/- 10%

Total 100%


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5.6 Fig:-13:-Thenthe whole range of different company can be displayed in following graph .

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CHAPTER-6By SWOT ANALYSIS:-

The over all evaluation of a company strengths,weakness,opportunites and threats is callSWOT analysis, by which we can compare with each other and find out which is the best in theconfectionary market and what is their market strategy in this market. It involves monitoring theexternal and internal marketing environment.External environment consists of opportunity and threat analysis and internal environment basedon strength and weakness. That are discussed below.

Strength:In the strength ,it list the specific areas of current and future strength for the company.

strong brand name.

market coverage

innovation marketing

product mix

packaging

pricing

physical distribution service level

Weakness:-It list the specific areas of current and future weakness for the company.

Higher price compared to competition.

Narrow product range

Lower productivity compared to international standards.

High personnel attrition rates.

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Opportunity: it list the external opportunity available in the company or business units currentand future environment.

Political environment

Social environment

Economical environment

Technological environment Natural environment

Legal environment

Threats:-in this block we list the external threats facing the company or unit now and in thefuture.

The consumer demand

The industries and competition

TechnologySo by the help of SWOT analysis we can analyze the companiesstrength,weakness,opportunities,and threats. By this analysis we can easily conclude that whichhas the best marketing strategy.

Then first of all about the confectionary company lotte India corporation ltd.

6.1 LOTTE:-

We discuss about the lotte India by the help of SWOT analysis, these are given below,Strength:-

It has strong brand name like coffe-bite,it is the strength of the company.

Lotte has a strong presence in the market.steady growth in sales. Semi state wise coverage;urban,and semi rural area covered.

Small packs,big packs, and every range of products available in lotte India.

Chocopai is the only product of lotte which has no competitor in the market. There is big

scope in future.

Weakness:-

Weak position in industrial confectionary; lotte india is far behind the leader perfetti and

Wrigley.

Market share in confectionary is unsatisfactory.

There is no advertisement or any strong punch line by which we can attract the customer

very easily.

Low distributors profile.

Opportunity:-

Economic reforms, liberalization and globalization carry good opportunities.

Technology import has been liberalization.

By technological import the company can meet the need for more information and advice

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A company can introduce the product very easily.

Large domestic market size.

Threats:-

Rapid changes in consumption habits and lifestyles impose a degree of vulnerability on

corporate. The legal process is rather slow.

Consumers are becoming very choosy, while buying chocolates.

Lucrative confectionary market attracts more competition.

Duplicacy of brands is high in confectionary.

Distributer bargaining power because of large no of similar product of different brand.

Local brand product

Then discussing about the another confectionary industry i.e. perfetti van malle,by SWOTanalysis we have analyze the companys market position.first of all its strength.

6.2 PERFETTY:-

Strength:-

It has strong brand name like chloromint, bigbabol,alpenliebe,its every product are well

marketed.

Perfetti has a strong presence in the market. High growth in sales. Full state wise coverage; urban,and rural area are fully covered.

Small packs, of products available in perfetti.

It has a good punch line of chloromint i.e. bina tayari ke dubara maat puchna.

Weakness:-

Perfetti has no all type of range products, it means it has only rs-.50/-and rs1/-product not

above.

Opportunity:-




A company can introduce the product very easily.

Threats:-

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corporate.

The legal process is rather slow.


Then we will discuss about the company Wrigley, which has good market share in theconfectionary market.

6.3 WRIGLEY:-

Strength:- It has strong brand name like boomer, it is the strength of the company.

Wrigley has a strong presence in the market. Steady growth in sales.

Semi state wise coverage; urban, and semi rural area covered.

Market share in confectionary market is satisfactory.

Weakness:-

Growing position in industrial confectionary;wrigley is far behind the leader perfetti.

Low area coverage.

There is a only one brand by which t continuing its business,i.e. with the help of boomer.

Opportunity:-




A company can introduce the product very easily

Threats:-

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corporate.



Then discussing about the company which is based on cigarette .i.e. discussing about ITC.itcstands for Indian tabaco company. By SWOT analysis we can analyze its market strength.

6.4 ITC:-

Strength:-

It has strong brand name like minto-fresh and candy man, it is the strength of the

company.

Itc has a major presence in the market. Steady growth in sales.

Semi state wise coverage;semi-urban,and semi rural area covered.

By help of cigarette it stands in the market.

Weakness:-

Weak position in industrial confectionary;itc is far behind the leader perfetti and

Wrigley.

Market share in confectionary is unsatisfactory.

Without cigarette it cant stable in the market,

Opportunity:-




A company can introduce the product very easily

Threats:-


corporate.



Then lastly analyze the company which has low market share,i.e. talking about nutrine

corporation ltd.

6.5 NUTRINE:-

Strength:-

It has strong brand name like mahalacto,it is the strength of the company.

Nutrine has a presence in the market due to the product of mahalacto..steady growth in

sales.

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Semi state wise coverage; semi-urban, and semi rural area covered.

Only one range of product available in nutrine confectionary ltd.

Weakness:-

Weak position in industrial confectionary; lotte india is far behind the leader perfetti and

Wrigley. Market share in confectionary is unsatisfactory.

Low man power in Orissa.

There is no advertisement or any strong punch line by which we can attract the customer

very easily.

Opportunity:-



By technological import the company can meet the need for more information and advice A company can introduce the product very easily

Threats:-


corporate.



So we see what are the strength ,weakness ,opportunity, and threats, of these companies. How

they establish in the market and what are the marketing strategy taken by these companies, wecan easily analyzed these companies by SWOT analysis method by which we can understandabout them.

LIMITATION:-

Limited time available for interviewing the respondents. As a result of this it

was not possible to gather full information about the respondents.

When I interviewed children and teenagers, sometimes they used to give

answers under the influence of their parents or elders.

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As summer training is going under summer season, so sometimes people are

less interested in filling up questionnaire. And in this time schools areclosed, so in survey I cant fully interact with more children.

Non-cooperative approach and rude behavior of the respondents.

My survey is based on only Sagar.i cant got full information about other

areas of Sagar.

MY FINDINGS

During the survey it was found that still there are 10%people who have not

aware about coffe-bite chocolate. Lack of Awareness in consumers. Many people are not know about lotte

Indias productsspecially they are not aware about the companys brandname i.e. coffe-bite,specially children.

When I interviewed people then many of the people can not recall coffe-bite

advertisement. It shows Lack of Advertisement oradvertisement is nottimely given oradvertisement is not given on right time.

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In its advertisement is not using any brand ambassador which attracts all

age group people like Cadbury.

There is lack ofSales Promotional Activities i.e. free tattoo, extra weight,

toys, quiz contest etc.

Perfetti is main competitor and strategically better performer than lotte.

I found the main thing is that coffe-bitebrand name has very good image

in consumers mind and they consider it as Pure & Good Product.

People are known about coffe-bite,they are not aware about, it is the product

of lotte india.and people are not aware about the lottes other product, onlycoffe bite is the brand name.

In my survey period I found that chocopai is the only product of lotte

,which has no competitor in the market.

Chocopai is the Mrp of Rs10/-,it is not a perfect Mrp for customer,in Sagar

market where many people are in below poverty line. If company reducesthe Mrp rate of chocopai then the company gets more and more business inchocopai.

SUGGESTIONS

In order to maintain and increase the sales in the city of Sagar, then thefollowing recommendations regarding lotte india; particularly regardingadvertisement, distribution, promotional policies, etc, are hereby suggested:

First and foremost lotte should take proper action in order to improveservice, because although being on a top slot in Butter and milk supplies itdoes not get the sales in chocolate, which it should get.

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Company should use brand ambassador which attracts each age segment i.e.Saniya Mirza, Mahendra singh Dhoni, Amitabh Bacchan,SachinTendulkar,Yuvraj singh.Jadoo etc.

Lotte should give local advertisements apart from the advertisements given

at the national level. Local advertisement must mention the exclusive lotteindia shops of the city.

Try and change the perception of the people through word of mouth aboutLotte in advertisements, because they are the best source to reach Childrenand families.

Though Lotte chocolate advertisements are rarely shown on television yetmany people could recall it as per the data of research. It shows that there isonly need to give advertisement only to rememorize customers. Becauselotte is very strong brand name.

Company should launch chocolate in new attractive packing to changeimage of lotte chocolate in consumers mind.

Company should introduce sales promotion schemes like free weight,pranky, tattoo, contest, free gifts etc.

Advertisement can be done with the help of animations that attracts childrenand teenagers because chocolates are consumed largely in this segment.

Company should introduce a good punch line by which children areremember very easily.

Conclusion

As we know that Lotte is very big organization and market leader in coffeeproducts. It has maximum market share in coffee, gum and fruitz, which are itsmain/core products. As we know Lotte is a co-operative organization butconfectionary industry is a profitable industry we cant ignore it. With the help ofresearch, company can find out its week points in chocolate product and can

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increase its market share through rectify mistakes. People have believed in lottesproduct and they will accept its chocolates also if effective actions were taken.The survey resulted into following conclusions :

Lotte must come up with new promotional activities such that people

become aware about Lotte Chocolates like boopro,spout,lacto king ,fruitzetc.

Quality is the dominating aspect which influences consumer to purchaseLotte product, but prompt availability of other chocolate brands andaggressive promotional activitiesby others influences the consumertowards them and also leads to increase sales.

In comparison to Lotte India, the other players such as Wrigley,itc, andPerfettiprovide a better availability and give competition to the hilt.

People are mostly satisfied with the overall quality of lotte india, but for theexistence in the local market Lotte must use aggressive selling techniques.

BIBLIOGRAPHY

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1. www.lotte india.com

2. www.google.com

3. www.marketresearch.com

Books

abell,derekF.,strategic market planning; problems and analytical

perspectives,prentice-hall,1979.

Dalrymple, douglasj.marketing management, text and cases,new

York,1976.

Kotler, Philip, marketing management,10th edition,prentice-hall of

india,new delhi,1999.

Levitt,Theodore,(the globalization of market) Harvard business

review.1982.

APPENDIX

QUESTIONNAIRE

Personal Information:

Name: Age:

[1] What kind of Chocolate do you eat?

(A)Branded (B) Non-branded

[2] Who uses chocolates in your family?

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(A) Children Teenager (B) Young (C) Old (D) other

[3] What form of Chocolate do you like?

(A)Cookies (B) Bar (C) Mint (D)lolly pop (E) other

[4] By which media you prefer to watch advertisements?

(A) Television Hoardings (B) Newspapers (C) Magazines (D) Others

[5] What factors effects you in a chocolate advertisement?

(A) Brand ambassador (B) Jingles (C) Comedy (D) Music (E)Others

[6] Have you ever tasted Lottes Chocolate?

(A)Yes (B)No

[7] What is the frequency of purchasing Chocolate?

(A)Daily (B)Weekly (C)Fortnightly (D)Occasionally[8] Are you satisfied with the product of lotte ?

(A) Highly satisfied (B) Satisfied (C) Less satisfied (D) Not satisfied

[9] Which Chocolate do you like most?

(A) LOTTE (B) PERFETTI (C) WRIGLEY (D) ITC (E) NUTRINE

THANK YOU

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