Project Final Sangram Kumar Dash

7/31/2019 Project Final Sangram Kumar Dash

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A

Project Report

On

THE STUDY ON VISUAL MERCHANDISING IN BRITANNIA

INDUSTRIES LTD. AND ITS IMPACT ON SALES.

A Project Report Submitted in Partial Fulfillment forthe Award

Of

POST GRADUATE DIPLOMA IN MANAGEMENT

(Batch 2010-2012)

Submitted By:

Sangram Kumar Dash

Registration No. 6073

Submitted To: - Director Academics:-

Prof. Bharat Bhusan Singh Dr. Sabyasachi Rath


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DECLARATION

I Sangram Kumar Dash hereby declare that the project titled The Study on visual

merchandising in BRITANNIA INDUSTRIES LTD. and its impact on salesis an

original work carried out under the guidance ofProf.Bharat Bhusan Singh. The report

submitted is a bonafide work of my own efforts and has not been submitted to any

institute or published before.

Signature of the student

Sangram Kumar Dash

Registration No- 6073

Date:

Place: Hyderabad


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ACKNOWLEDGEMENT

It is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of well-

wishers who have in some way or other contributed in their own special ways to the

success and completion of this summer internship project.

I express my sage sense of gratitude and indebtedness to my Director,AcademicsDr.

SabyasachiRath of VishwaVishwani Institute of System and Management,

Hyderabad, from the bottom of my heart, for his unprecedented support and faith that I

do the best and his valuable recommendation and for accepting this project.

Further I express my sage sense of gratitude to Mr. Dipesh Kale, Area SalesManager (BIL, Hyderabad) who was kind enough to give an opportunity to work

under his immense expertise. I sincerely thank to him for his valuable suggestions,

motivation and encouragement.

I express my sense of gratitude and indebtedness toProf. Bharat BhusanSingh ,for

his unprecedented support and faith that I do the best and his valuable

recommendation and for guiding me in this project.

I would be failing in my duty if I dont express my profound gratitude to the entire

respondent who has spent their valuable time to answer the questionnaire.

Last but not the least; I would also like to expand my thanks to all faculty members of

VishwaVishwani Institute of System and Management, Hyderabad, who have helped a

lot during the course of my project.

I also extend my heartfelt thanks to my family.


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TABLE OF CONTENTS:

Chapter.No.

Content PageNo.

Chapter 1 Introduction 1-10

Chapter 2 Industry Profile

Company Profile

Literature Review

11-51

Chapter 3 Researchmethodology

52-58

Chapter 4 Data collection

Analysis&Interpretation

59-68

Chapter 5 Findings

Recommendations

Conclusions

69-73

Bibliography

Books/ Articlesreferred

Websites referred

74-75

Annexure Sample Questionnaire 76


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[1]

Chapter-1

Introduction


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INTRODUCTION

A successful FMCG business requires that a distinct and consistent image be

created in the customers mind that permeates all product and service

offerings. Visual merchandising can help in creating positive customer imagethat leads to successful sales. It not only communicates the stores image, but

also reinforces the stores advertising efforts and encourages impulse buying

by the customer. Visual merchandising is a major factor often overlooked in

the success or failure of a retail store. It is second only to effective customer

relations.

Visual merchandising can be defined as everything the customer sees, bothexterior and interior, that creates a positive image of a business and results in

attention, Interest, desire and action on the part of the customer. A story can

be told that communicates to the prospective customer what the store is all

about. It includes the dramatic presentation of merchandise as well as other

important features that create the stores overall atmosphere.

Eighty per cent of the impressions are created by sight; that is why one

picture is worth a thousand words. Each customer has a mental image of a

store and its merchandise. A store should have an inviting appearance that

makes the customer feel comfortable and yet eager to buy. Some businesses

maintain minimum staffs to reduce costs, which mean it is even more

important for the merchandise to sell itself. Greater effort must be spent on

merchandise displays that make it easier for the customer to find and

purchase the items they want or need.

The basic objective for visual merchandising in FMCG sector is to create

desire to attract customers to a place of business in order to sell the

merchandised products. Visual merchandising is offered to the Customer

through exterior and interior presentation. Each should be coordinated with

the other using the stores overall theme. Creating and maintaining a stores

visual merchandising plan, however, is not a simple task. It is necessary to

continually determine what the customersees.


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Objective of the study:-

All companies are having their own planning and business strategies but the

company who ishaving the best, is the most successful company among itscompetitors. So the company can getsuccess within its competitors by

applying best and effective marketing strategies.

To identify the visualize merchandising and product image in market.

To know the offers to customer, retail outlets and competitors offer

given to customer retail outlets.

To know the impact of merchandising.

To know the brand preferences by the customers.

To track the sales in the particular beat.

Scope and the Limitation of the study

The scope of study is limited to the respondents are selected from in

and around Hyderabad and secunderabad region.

The project is carried out for the period of 45 days only.

The sample unit was also 100 respondents.

However, retailer outlets owners and people looking for new cars are

located in other places i.e.locally and even in neighboring states. Only

opinion of respondents of Hyderabad city was consider for finding out

the opinions of respondents.


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Facility of visual merchandizing in FMCG:

Visual merchandising starts with the store building itself. The management

decides on the store design to reflect the products the store is going to sell

and how to create a warm, friendly, and approachable atmosphere for its

potential customers.

Many elements can be used by visual merchandisers in creating displays

including colour, lighting, space, product information, sensory inputs (such as

smell, touch, and sound), as well as technologies such as digital displays and

interactive installations.

Visual merchandising is one of the final stages in trying to set out a store in a

way that customers will find attractive and appealing and it should follow and

reflect the principles that underpin the stores image. Visual merchandising is

the way one displays 'goods for sale' in the most attractive manner with the

end purpose of making a sale. "If it does not sell, it is not visual

merchandising."

Especially in todays challenging economy, people may avoid designers/

visual merchandisers because they fear unmanageable costs. But in reality,

visual merchandisers can help economise by avoiding costly mistakes. With

guidance of a professional, a retailer can eliminate errors, saving time and

money. It is important to understand that the visual merchandiser is there, not

to impose ideas, but to help clients articulate their own personal style.

Visual merchandising is the art of implementing effective design ideas to

increase store traffic and sales volume. VM is an art and science of displaying

merchandise to enable maximum sale. VM is a tool to achieve sales and

targets, a tool to enhance merchandise on the floor, and a mechanism to

communicate to a customer and influence his decision to buy. VM uses

season based displays to introduce new arrivals to customers, and thus

increase conversions through a planned and systematic approach by

displaying stocks available.


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Comparison of todays merchandising process with

the future era in FMCG sector:

Fig-1.1

Many of the processes weve highlighted in the above diagram have been

historically considered traditional practices for General Merchandise and

Apparel retailers, while those selling Fast Moving Consumer Goods were

traditionally more interested in market basket analysis, boosting average

transaction value with loyalty programs, and managing within any given

category.


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Fig-1.2

Here we find FMCG will have achieved parity, or in some cases actually

leapfrogged their GMA cousins in merchandise processes.

Thus, we find in 21stCentury merchandising: FMCG outlets will cross best

practices across all segments, looking for similarities and opportunities alongwith the more obvious differences.


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Model of buying behavior by creating impulse in the

mind of consumer in FMCG sector through

merchandising:

Fig-1.3

In the above model it simplifies that how merchandising creates

impulse in the mind of customer.

First when a customer enters into a FMCG outlet then he first thinks

about his need.

Then he sees various alternatives in this context the marketer should

create the marketing of product by showing him various products in the

display.

Here in this step the product which looks good from outside or the

product which kept sequentially with the help of merchandising this

product can only able to create impulse in the mind of customer.

Then only the customer buys this product without bothering about any

other product.


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Impact of merchandising on FMCG product:

Fig-1.4

In the above diagram it shows that the merchandising affects is high in

the product categories like snacks, chocolates and candies and biscuit.


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Increasing Impact of Merchandising on Product

Purchase:

Fig-1.5

The above pyramid shows that the high effect of merchandising on

product group like chocolates and candys, biscuits and snacks.

Then the medium effects merchandising on the product group like

personal care, home care, hair care, food items and others.

The very low effects of merchandising on product group like beverage

and milk products.

There is no effect of merchandising on the product group like milk, oil &

ghee, spices and tea &coffee.


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Various Kind of impact through visual merchandising:

Fig-1.6

Here in the above model it shows the various impact of visual

merchandising on the consumer.

First merchandising creates impulse buying by which the customerwants to buy more and more.

It is also help in brand preference by the customer through

merchandising.


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Chapter-ii

Industry profile,

Company profile and

Litereture review


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Introduction about FMCG industry:

Products which have a quick turnover, and relatively low cost are

known as Fast Moving Consumer Goods (FMCG).

FMCG products are those that get replaced within a year, examples of

FMCG generally include a wide range of frequently purchased

consumer products such as toiletries, soap, cosmetics, and tooth

cleaning products, shaving products and detergents, as well as other

non-durables such as glassware, bulbs, batteries, paper products, and

plastic goods.

FMCG may also include pharmaceuticals, consumer electronics,

packaged food products, soft drinks, tissue paper, and chocolate bars.

The volume of money circulated in the economy against FMCG

products is very high.

Number of products the consumer use is very high, competition in the

FMCG sector is very high resulting in high pressure on margins.

FMCG companies maintain intense distribution network, companies

spend a large portion of their budget on maintaining distribution

networks.

New entrants who wish to bring their products in the national level need

to invest huge sums of money on promoting brands.

Manufacturing can be outsourced. A recent phenomenon in the sector

was entry of multinationals and cheaper imports; also the market is

more pressurized with presence of local players in rural areas and

state brands.


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Characteristics of FMCG industry:

From the consumers' perspective:

Frequent purchase

Low involvement (little or no effort to choose the item -- products

with strong brand loyalty are exceptions to this rule)

Low price

From the marketers' angle:

High volumes

Low contribution margins

Extensive distribution networks

High stock turnover

Scope of FMCG industry:

The term FMCG refers to those retail goods that are generally replaced

or fully used up over a short period of days, weeks, or months, and

within one year. This contrasts with durable goods ormajor appliances such as kitchen

appliances, which are generally replaced over a period of several

years.

FMCGs have a short shelf life, either as a result of high consumer

demand or because the product deteriorates rapidly.
http://en.wikipedia.org/wiki/Contribution_marginhttp://en.wikipedia.org/wiki/Distribution_%28business%29http://en.wikipedia.org/wiki/Stock_turnoverhttp://en.wikipedia.org/wiki/Durable_goodhttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Durable_goodhttp://en.wikipedia.org/wiki/Stock_turnoverhttp://en.wikipedia.org/wiki/Distribution_%28business%29http://en.wikipedia.org/wiki/Contribution_margin


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FMCG industry in Indian perspective:

Indias FMCG sector is the fourth largest sector in the economy and creates

employment for more than three million people in downstream activities. Its

principal constituents are Household Care, Personal Care and Food &

Beverages. The total FMCG market is in excess of a high growth. It is

currently growing at double digit growth rate and is expected to maintain a

high growth rate. FMCG Industry is characterized by a well-established

distribution network, low penetration levels, low operating cost, lower per

capita consumption and intense competition between the organized and

unorganized segments.

Market share movements indicate that companies such as Marico Ltd and

Nestle India Ltd, with domination in their key categories, have improved their

market shares and outperformed peers in the FMCG sector. This has been

also aided by the lack of competition in the respective categories.

Singleproduct leaders such as Colgate Palmolive India Ltd and Britannia

IndustriesLtd have also witnessed strength in their respective categories,

aided by innovations and strong distribution. Strong players in the economy

segment like Godrej Consumer Products Ltd in soaps and Dabur intoothpastes have also posted market share improvement, with revived growth

in semi-urban and rural markets.


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Overview Indian FMCG Sector:

FMCG Industry is expected to have a market of 40,000 crore by 2020

according to ministry of food.

Fourth largest sector in the economy with a total market size in

excess of US$ 13.1 billion.

Strong MNC presence and is characterised by a well-established

distribution network, intense competition between the organised and

unorganised segments and low operational cost.

Availability of key raw materials, cheaper labour costs and presence

across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$

33.4 billion in 2015.

Penetration level as well as per capita consumption in most product

categories like jams, toothpaste, skin care, hair wash etc. in India is low

indicating the untapped market potential.

Burgeoning Indian population, particularly the middle class and the

rural segments, presents an opportunity to makers of branded products

to convert consumers to branded products.

Growth is also likely to come from consumer 'upgrading' in the

matured product categories.

With 200 million people expected to shift to processed and packaged

food by 2010, India needs around US$ 28 billion of investment in the

food-processing industry.


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FMCG Category and products:

Category Products

Household Care Fabric wash (laundry soaps and synthetic

detergents); household cleaners(dish/utensil

cleaners, floor cleaners, toilet cleaners, air

fresheners, insecticides and mosquito

repellents,

metal polish and furniture polish).

Food and Health beverages; soft drinks; staples/cereals;

Beverages bakery products (biscuits,

bread, cakes); snack

food; chocolates; ice cream; tea; coffee;

soft

drinks; processed fruits, vegetables; dairy

products; bottled water; branded flour;

branded

Rice; branded sugar; juices etc.

Personal Care Oral care, hair care, skin care, personal

wash

(soaps); cosmetics and toiletries;

deodorants;

Perfumes; feminine hygiene; paper

products.


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Factors affecting Indian FMCG industry:

Large domestic market

India is one of the largest emerging markets, with a population of over one

billion. India is one of the largest economies in the world in terms of

purchasing power and has a strong middle class base of 300 million.

Rural and urban potential

Around 70 per cent of the total households in India (188 million) reside in the

rural areas. The total number of rural households is expected to rise from 135

million in 2001-02 to 153 million in 2009-10.

The Indian rural market with its vast size and demand base offers a huge

opportunity for investment. Rural India has a large consuming class with 41

per cent of Indias middle-class and 58 per cent of the total disposable

income. With population in the rural areas estimated to have risen to 153

million households by 2009-10 and with higher saturation in the urban

markets, future growth in the FMCG sector will come from increased rural and

small town penetration. Technological advances such as the Internet and e-

commerce will aid in better logistics and distribution in these areas.

The rural and urban profile is given below:-

Tab-2.1


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Exports:

India is one of the worlds largest producers of a number of FMCG products

but its exports are a very small proportion of the overall production. Total

exports of food processing industry were $6.9 billion in 2009-10. Though theIndian companies are going global, they are focusing more on the overseas

markets like Bangladesh, Pakistan, Nepal, Middle East and the CIS countries

because of the similar lifestyle and consumption habits between these

countries and India.

India - a large consumer goods spender:

An average Indian spends around 40 per cent of his income on grocery

and 8 per cent on personal care products. The large share of fast moving

consumer goods (FMCG) in total individual spending along with the large

population base is another factor that makes India one of the largest FMCG

markets. Even on an international scale, total consumer expenditure on food

in India at US$ 120 billion is amongst the largest in the emerging markets,

next only to China.

Change in the Indian consumer profile:

Rapid urbanisation, increased literacy and rising per capita income, have all

caused rapid growth and change in demand patterns, leading to an explosion

of new opportunities. Aspiration levels in this age group have been fuelled by

greater media exposure, unleashing a latent demand with more money and a

new mind set.

Demand-supply gap:

Currently, only a small percentage of the raw materials in India are processed

into value added products even as the demand for processed and

convenience food is on the rise. This demand supply gap indicates an

untapped opportunity in areas such as packaged form, convenience food and


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drinks, milk products etc. In the personal care segment, the low penetration

rate in both the rural and urban areas indicates a market potential.

The Structure:

The Indian FMCG sector is the fourth largest sector in the economy and

creates employment for three million people in downstream activities. Within

the FMCG sector, the Indian food processing industry represented 6.3 per

cent of GDP. A distinct feature of the FMCG industry is the presence of most

global players through their subsidiaries (HLL, P&G, Nestle), which ensures

new product launches in the Indian market from the parent's portfolio.

Critical operating rules in Indian FMCG sector:

Heavy launch costs on new products on launch advertisements, free

samples and product promotions.

Majority of the product classes require very low investment in fixed

assets

Existence of contract manufacturing

Marketing assumes a significant place in the brand building process Extensive distribution networks and logistics are key to achieving a

high level of penetration in both the urban and rural markets

Factors like low entry barriers in terms of low capital investment, fiscal

incentives from government and low brand awareness in rural areas

have led to the mushrooming of the unorganised sector

Providing good price points is the key to success.


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Market size of FMCG industry in India:-

Fast moving consumer goods (FMCG) sector in India is one of the largest

sectors in the economy with estimated total market size of around Rs 110,000

crore in 2010. After sluggish growth for couple of years through 2002-2004,

the segment has picked up the speed again and has been clocking

substantial growth numbers during last 5-6 years. The sector also continued

to do reasonably well following the global financial crisis as the rural India,

which has become the new demand heaven for the industry, remained largely

aloof from the slowdown. With the Indian economy now back on the high

growth trajectory, the industry has massive potential to grow further,

particularly in rural Indian and the high end products as expected size will be

around RS180 crore in 2015.

FMCGs growth story started the deregulation of Indian economy in early

1990s which saw dismantling of the license raj, resulting in a spurt in new

companies and entry of a number of foreign brands. With relatively lesser

capital and technological requirements, a number of new brands emerged

domestically as well while the relaxed FDI conditions led to induction of manyglobal players in the segment. Both these factors resulted in leading to rapid

development of the FMCG market in India.

Fig-2.1


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Segment of Indian FMCG industry:-

Indian FMCG sector is characterized by strong presence of multinational

companies.

The segment of Indian FMCG industry has various segments like personalcare, household, food products etc. Compared to other manufacturing

sectors, FMCG is relatively much less capital-intensive. But the sector

demands high expenditure on branding and distribution. Most companies in

the sector create value through product differentiation, package innovation,

and differential pricing and highlighting the functional aspect of their products.

Fig-2.2

Here we can see in the above pie chart it shows that the other segment

occupied 43% whereas hare care, over the counter (i.e. drug), household,

food products, personal care, baby care, fabric care occupied 8%, 4%, 4%,

5%, 22%, 2%, 12% respectively.


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Key players in Indian FMCG sector:-

Hindustan Unilever Ltd

Indian Tobacco Company

Nestle India

GCMMF (Amul)

Dabur India

Cadbury India

Britannia Industries

Procter & Gamble Hygiene and Health Care

Marico Industries


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Brief introduction of the key players

Hindustan unilever LTD.:-

Earlier known as Hindustan Lever Limited

It was formed in 1933 as Lever Brothers India Limited.

Headquartered in Mumbai,

HUL is the market leader in Indian products such as tea, soaps,detergents etc.

The companys statement of corporate purpose is to meet theeveryday needs of people, everywhere.

The company was renamed in late June 2007 to "Hindustan UnileverLimited, to provide the optimum balance between maintaining heritageof the company and future benefits.

ITC LTD:-

ITC was incorporated on August 24, 1910 under the name Imperial

Tobacco Company of India Limited.

As the Company's ownership progressively Indianite, the name of the

Company was changed from Imperial Tobacco Company of India

Limited to India Tobacco Company Limited in 1970 and then to I.T.C.Limited in 1974.

In recognition of the Company's multi-business portfolio encompassing

a wide range of businesses - Cigarettes & Tobacco, Hotels, Information

Technology, Packaging, Paperboards & Specialty Papers, Agri-

business, Foods, Lifestyle Retailing, Education & Stationery and

Personal Care.


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Nestle India:

The journey of Nestle India began in the year 1912 in the name of the

Nestle Anglo-Swiss Condensed Milk Export Company Limited.

It deals with selling and importing finished products in Indian market.

The company is one among the top wealth creators of India.

The company is manufacturing Indian Consumer products with

international standards.

GCMMF (Amul):

GCMMF stands for Gujarat Cooperative Milk Marketing Federation.

The company aims at offering good returns to the farmers and at

fulfilling the requirements of consumers by offering them quality

products.

Theproducts offered by GCMMF, Amul range of products is the most

famous and millions of people in India use Amul products.

Some of the products of Amul include Amulya, Amul Milk, Nutramul,

Amul Ice Cream, AmulShirkhand, Amul Chocolates, Amul Cheese,

Dabur India:

Dabur India deals with personal and health care products.The recent

turnover of this company is Rs. 1899 crores.

The company is divided into two major strategic business units being

consumer health division and consumer care division.

The company has manufacturing units in different countries and some

of their popular brand products are Daburlaldantmanjan,

daburchyawanprash, daburamla, hajmola, anmol, vatika and Dabur red

tooth paste.


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Cadbury India:

Cadbury came into India in the year 1948 by importing consumer good

namely chocolates.

They were dealing only with importing chocolates in different parts of

India like Himachal Pradesh, Bangalore, Gwalior, Pune and Mumbai

and sales offices at Chennai, New Delhi, Kolkata and Mumbai.

Some of their popular products are Cadbury diary milk, celebrations,

clairs, perk and 5 star and they are also popular for their milk drink

bournvita.

Britannia Industries:

Britannia came into market in 1892 in Kolkata.

Britannia industries are dealing with manufacturing of products like

milk, butter, cheese, cakes, rusk, bread and the popular Britannia

biscuits.

Some of their popular branded biscuits are tiger, milk bikis, good day,

pure magic, maskachaska, treat and marie gold.

Procter & Gamble:

Procter & Gamble deals with manufacturing of household cleaner, pet

food and personal care products.

This company is shortly called as P& G and this company is a parent

company of some popular companies like Global Gillette and Clariol.

Some of their popular health care products are Vicks inhaler, Vicks

formula 44 cough syrup, vicks cough drops, Vicks VapoRub and Vicks

Action 500+, whisper etc.


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Marico Industries: Marico Industries is a leading Indian company manufacturing and

exporting consumer products to different countries like SAARC

Countries, Egypt, the Middle East, Bangladesh, UAE and the USA.

During 2010-11, Marico recorded a turnover of Rs. 31.3 billion through

its products and services sold in India and 25 other countries in Asia

and Africa.

Some of their popular products are Parachute, Revive, Shanti, Saffola,and Mediker.


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Swot Analysis of FMCG industry:-

Strengths: Weaknesses:

Well-established distribution

network extending to rural

areas.

Strong brands in the FMCG

sector.

Low cost operations

Low export levels.

Small scale sector

reservations limit ability to

invest in technology and

achieve economies of scale.

Several "me-too products.

Opportunities: Threats:

Large domestic market.

Export potential

Increasing income levels will

result in faster revenue growth.

Imports

Tax and regulatory structure

Slowdown in rural demand


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Indian FMCG Sector Trends:

In this post i have covered multiple trends happening in the Indian FMCG

sector.

Focus on Health

Companies are widening their health food portfolio to cash in on the rich,

urban, health conscious Indian. In recent we have seen flurry of products in

this segment. Have a look of some of them:

Sugar free Chywanprash

butter Lite (Nutralite)Corn Flakes/ Oats

Lays (40% less saturated fats) Snack Smart

Low Calorie Sweetners

Impact of Inflation:

The expenditure of FMCG in the consumer's wallet is coming down year on

year. This is leading to low sensitivity with price increases. Almost a decade

back people use to down trade from expensive brands to value for money

ones. But now the trend is changing. Consumers are not switching to cheaper

substitutes. Rather companies have come with lower quantity SKUs and

make consumers switch from higher to lower SKUs and not from premium to

popular brands (like Dove to Lux International). Just to give you an example,

Henkel instead of increasing the price of their Henkel detergent from Rs. 46 to

Rs. 50, they have launched a new SKU of 400gms for Rs. 40. During the timeof inflation, people shift to sachets of their brands. Sales numbers of FMCG

companies are quite robust.


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Micro Segmentation/ Niches:

Its interesting and funny to see that companies are not leaving any

opportunity to micro segment the market. I can foresee that we are here to

see further segments in different categories. Here are some examples:

Age Sex Specialized Household

Cleaners

a) Junior Horlicks

b) Junior

Chyawanprash

c) Pepsodent Barbie for

Kids/ Colgate

Strawberry

a) Womens

Horlicks

b) Male fairness

cream

a) Kitchen Cleaner: Mr.

Muscle

b) Power Cleaner (Rust):

Easy Off Bang

Low value SKUs:

We all know that it all started in 1980's with shampoos. I think Nano is an

interesting example of an automobile sachet. Here is a small list of sachets:

ShampoosButter (Munna Pack)

Hair Oils (Navratan ThandaThanda Cool Cool)

Noodles (Chotu Maggi)

Jet Age Consumer Products:

Because of changing lifestyles, busy jobs etc. marketers are coming up with

Jet Age consumer products.

Ready to Eat Ready to Drink Ready to Cook

a) Corn Flakes/ Oats

b) Pastas

c) Biscuits

d) Noodles

e) Pizzas

f) Burgers

a) Energy Drinks

b) Non-Cola Drinks

(Juices)

a) Cut Vegetables

b) Soups

c) Parathas/ Roti

d) Snacks


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Under-penetrated Growth Categories:

Barring few main mainstream categories, there are number of FMCG

categories with low penetration are

Mens grooming products

Skin care & Cosmetics

Anti-aging solution

Shampoos

Toothpaste

Deodorants

Low Per Capita Consumption:

Currently we are nowhere near to other developing countries in terms of per

capita consumption. Be it Laundry, Skin Care, Shampoos or deodorants.

Marketers have put in efforts to increase the consumption frequency or

quantum of consumption per occasion. Colgate started the "twice a day"

campaign few years back. Recently we have Good Night coming up with

Double power pack. Per Re1 increase in per capita consumption of a category

will lead to growth of more than 100 crores.


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COMPANY PROFILE

History:-

The story of one of India's favourite brands reads almost like a fairytale. Once upon a time, in 1892 to be precise, a biscuit company wasstarted in a nondescript House in Calcutta (now Kolkata) with an initialinvestment of Rs. 295.

The beginnings might have been humble-the dreams were anythingbut. By 1910, with the advent of electricity, Britannia mechanized itsoperations, and in 1921, it became the first company east of the SuezCanal to use imported gas ovens.

Britannia's business was flourishing. But, more importantly, Britanniawas acquiring a reputation for quality and value. As a result, during thetragic World War II, the Government reposed its trust in Britannia bycontracting it to supply large Quantities of "service biscuits" to thearmed forces.

As time moved on, the biscuit market continued to grow andBritannia grewalong with it. In 1975, the Britannia Biscuit Companytook over the distribution of biscuits from Parry's who till nowdistributed Britannia biscuits in India.

In the subsequent public issue of 1978, Indian shareholding crossed

60%, firmlyestablishing the Indianness of the firm. Britannia BiscuitCompany was re-christened Britannia Industries Limited (BIL). Fouryears later in 1983, it crossed the Rs. 100 crores revenue mark.

On the operations front, the company was making equally dynamicstrides. In

o 1992, it celebrated its Platinum Jubilee. In 1997, the companyunveiled its newcorporate identity - "Eat Healthy, Think Better" -and made its first foray into the dairy products market.

In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified

the affinity consumers had with 'Brand Britannia'. Britannia strode intothe 21st Century as one of India's biggest brands and the preeminentfood brand of the country.

PROFILE

Type publicIndustry FoodFounded 1892Headquarters Kolkata

Key people Nusliwadia (Chairman), Vinita wali (MD)Products Biscuits, Dairy, Bakers and Rusks


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MISSION

To Make Every Third Indian a Britannia Consumer.

The Indian population today is over 1 billion. Of these, economic datasuggests that one third can afford products in the price range that we operatei.e. Re. 1 in case of Tiger Tikki to Rs. 120/- in case of the 1kg Milkman DairyWhitener. The company has to constantly endeavour to capture the entiremarket of this target population. The key to success is once again throughvery high levels of commitment to the roles and the goals of the organization.The company needs to constantly strive to excite the consumer throughwhatever they do.

VISION

To Dominate the Food and Beverage Industry and TripleTurnover and Operating Income.

The vision states that the company not only needs to lead but to dominate theindustry. This implies that the company needs to be the preferred choice ofthe consumer in every product category that it operates in. The preference ofconsumers will come through excellent products and excellent service to thetrade and to the end consumer.

BUSINESS STRUCTURE

This figure describes the Britannias overall Business structure in all the fourmajor regions of the Country. This describes how the four zones areconnected to each other.


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PRODUCTS PROFILE:

Tiger:-

Tiger, launched in 1997, became the largest brand in Britannia'sportfolio in the

very first year of its launch and continues to be so tilltoday. Tiger has grown

from strength to strength and the re-invigoration in June 2005 and more

recently, in Apr 2008 has furtherhelped bolster its growth in the highlycompetitive glucose biscuitcategory.Tiger is a Glucose biscuit, which comes

with the added goodness ofwheat and milk. It is for modern mothers who play

an enabling rolefor their children to compete in today's world and thus want

thebest. Now Tiger Glucose has been fortified with "Iron Zorn" with an

Tiger Coconut: Delicious Coconut Flavored Energy Biscuits,launched in 2000.

Tiger Creams: Was introduced in 2002 at just Rs 5 per pack. TigerCream is

now available in Orange, Elaichi, Chocolate, Pineapple,Strawberry and

Butterscotch flavors, and promises to bring morefun and more energy to

children across the country.

ChotaTiger : Is an extension of brand Tiger launched nationally inMay, 2007.

It is mini sized poppable glucose biscuit with colouredsugar sprinkling. It comes

in two variants: Milk Sparkies and ChocoSparkies

IRON ZOR helps make mind sharper and body stronger. A Rs.4 packhas as

much IRON ZOR as that in 1 kg of Banana.R&D in Britannia has spent

considerable time to develop thisnutritious and delightful snack for

children.Britannia Tiger Banana packed with IRON ZOR and goodness

ofBanana is accessible to all, being available in convenient packspriced at

Rs.2, Rs.4 and Rs.10.

Good Day:


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Britannia Good Day was launched in 1986 in two delectable avatars- Good Day

Cashew and Butter. Over the years, new variants wereintroduced - Good Day

PistaBadam in 1989, Good Day Chocochipsin 2000 and Good Day Choconut in

2004.This rich cookie enjoys a fan following of consumers across all ages,loyal

to the brand promise of a great taste, evident from the visiblyabundant

ingredients. Good Day is among the fastest growingbrands in Britannia's

portfolio and it has been the leader in thecookies category ever since its

launch. The brand is synonymouswith everyday treats that infuse happiness

into people's lives.After two decades of magnificent success; it was time to

give thenation yet another reason to have a good day. Abundance, goodness,

indulgence and now unrestrained joy - that is themessage of this new

campaign.The new TT ad is the uncontrollable expression of the

ticketcollector's happiness and joy that is stimulated by consumption ofthe

cookie, that spreads cheer amongst the people around himcreating an

atmosphere of shared joy that's unorchestrated andstraight from the heart.The celebration was taken to the IPL asGood day cheered along with a million

cricket fans in the stadiums,each screaming and proclaiming "Ho gaya re Good

Day". Thedazzling brilliance of this endeavour, the contagious rhythm needsto

be lived and spread through the nation, making 'Iskatoh hoGaya Re Good

Day' a part of the common lingo and a way of life.Good Day truly believes

laughter and happiness are infectious, ittranscends race, caste creed unifying

humanity in an inclusiveemotion.The brand perseveres to infuse cheer, hearten the nation and enliven lives.

With its rightful place on the front page of The Timesof India, Good Day gifts

the nation a priceless treasure, that ofspreading JOY!

Bourbon:


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Thick, rich and delicious chocolate packed between two crunchychocolate

biscuits, topped with sugar crystals - presenting, theoriginal Bourbon, from the

house of Britannia.India's first and favorite Bourbon's sweet adventure began

in 1955.Since then, Bourbon lovers across the country have been

caughtopening this chocolate couplet, licking the cream, and nibbling atthe

melt-in-your-mouth biscuit, bit by bit. Some have beenwitnessed chomping it

whole, at one go. Some have been noted toalternate it with sips of coffee;others team it with lots of gossip andgupshup, while a few have been observed

enjoying it with a book.And some have been seen reluctantly sharing their

Bourbon.Whatever the occasion, wherever the hangout, Bourbon makes

forgreat company. You can grab your very own Nano Pack or a PocketPack.

The Hangout Pack is just right for chilling with friends. Takealong a Party Pack

for... yes, a party! And the Gift Pack will surelywin you a few brownie points!

RUSK:

Britannia launched its rusks in the year 2005. In a Market full ofunbranded

players, Britannia rusks have stood head and shouldersabove the rest in terms

of sheer quality .They are made from thefinest ingredients and baked with care

as they are twice as crisperas and tastier than ordinary rusks. The

communication for thismouthwatering offering is aptly Enliven your spirits

with Britanniarusks.

Cakes:


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Britannia entered the cake market in the year 1963 and is the leading player

in the market. Britannia Cakes range is divinelyscrumptious and has Bar

Cakes, Chunk Cakes and Cup Cakes whichwere launched in 2005. Bar Cakes

are available in variants thatinclude Fruit, Butter Sponge, Chocolate,

Pineapple, Milk, VanillaChocolate and Orange. Apart from being delicious,

these snacks arepacked with healthy ingredients making them wholesome

&delightful.Britannia cup cakes come in vanilla and orange and mixed

fruitflavors whereas chunk cakes come in fruit flavor.Britannia has recently

launched for the 1st time ever in thepackaged segment Veg Cakes, pure and

eggless. These VegetarianCakes are soft, juicy and filled with real fruit bits

which can beenjoyed just by themselves or mixed with a variety of ingredients

tomake quick, delicious desserts. With zero cholesterol andhygienically

packed for a shelf life of 3 months, they are a morewholesome and healthy

option than other sweet dishes available inthe market.Britannia Veg Cakes

come in Twisty Fruity avatar and are priced atRs 10/- for a 75 gram pack. Theyenjoy a 3 month shelf life.

Marie Gold:

Britannia's oldest brand enjoys a heritage that spans the last 50years - and

going strong. In a market swamped with me-tooproducts and where even the

name 'Marie' has become generic,Britannia Marie Gold has maintained its

stronghold. Today, the ever-popular Marie Gold is synonymous with the 'Tea

Time Biscuit'. Itstaste, crispiness and lightness make it a must for every tea

break. Itis the #1 brand in its category by a long shot.

BRITANNIA 50-50:


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Treat:

As a move to consolidate all the individual Cream Treat offerings under a

single umbrella, Britannia launched Treat in 2002. Treat has a range of tasty

delights for all kids with yummy creamy treasures within the biscuit shells. The

kids have always relished unraveling the irresistibly delicious creams hidden

inside the biscuit Britannia Treat offers a wide variety of flavors, such as the

Elaichi, the Fruit Flavored Creams such as Orange, Pineapple, Mango, and

Strawberry, the Jam Filled Centers under the Jim Jam range, and the Duet

Range (biscuits with two flavours of cream between three layers of biscuit)

comprising Strawberry Vanilla and Duet Strawberry Chocolate.

Britannia Treat has now launched yet another mouthwatering delight under its

umbrella. The delicious Fruit Rollz take the Treat brand beyond the cream

biscuits and provides yet another lip smacking delight to its consumers.

Fruit Rollz are soft rolls filled with the goodness of real fruits, and provide ahealthy yet scrumptious treat to our 'loveable devils' Treat also introduced its

naughty and adorable brand mascot FUNTOOSH whose primary occupation is

mischief FUNTOOSH is the guy who will pull off any trick to make sure he gets to

eat his Britannia Treat.

For all you kids who have relished the yummy treasures of Britannia Treat in

exciting flavors, look out for yet another reason to celebrate!

Britannia Treat launches a new and exciting combination of chocolate and

caramel in a single bar - TREATCHOCO GELO. This unique and never

before product is guaranteed to double the masti and double the fun that you

have with Treat.

So go ahead, open this delicious pack, indulge yourself with Treat ChocoGeloand enjoyYummy ChocolateandGooey Caramelfor "Double Mastika

Double Dose"


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Board of members:-

Name DesignationMr. Nusli Neville Wadia ChairmanMs. Vinita Bali ManagingDirectorMr. A.K.Hirjee DirectorDr. AjaiPuri DirectorMr. Avijit Deb DirectorMr. Jeh N Wadia DirectorMr. KekiDadiseth DirectorMr. Nasser Munjee DirectorMr. Ness NusliWadia DirectorMr. Nimesh N Kampani DirectorMr. PratapKhanna DirectorMr. S.S.Kelkar Director

Dr. Vijay L. Kelkar Director

Corporate Bodies:-

Name DesignationANURADHA NARASIMHAN Category Director - Health & WellnessASHOK KUMAR GUPTA General Manager - Accounts & PlanningGAUTAM BANERJEE General Manager - MaterialsR K AGRAWAL Supply Chain Director for New Business

DevelopmentR. ANAND Business Operations DirectorSHALINI DEGAN Category Director - Delight & LifestyleT S VENKETRAM General Manager - Engineering Projects

& TechnologyVINOD MENON Head - Dairy BusinessBALAJI REDDIPALLI Head ReplenishmentN. VENKATARAMAN General Manager - CommercialSHRIDHAR PANSHIKAR National Sales DirectorKAILASH KAKANI Head of Manufacturing OperationsB. PRASHANTH Head of R&D

Dr. K.N. SHASHIKANTH Head - Corporate QualityVALIVETI V PADMANABHAM Head - Corporate ITP. GOVINDAN Company Secretary & Head of Legal


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MANAGEMENT HIERARCHY:

COMPETITORS:-

Parle Products Pvt. Ltd: Established In 1929, company has factories

in Mumbai, Bangalore, Bahadurgarh in Haryana and Neemrana in

Rajasthan, Additionally, Parle Products also has 7 manufacturing units

and 51 manufacturing units on contract. Company has aboutapproximate market share of 30-35% of the total biscuit market. Parle-

G accounts for the major volume turnover it accounts for approximately

80% of the total biscuit tonnage for the company.

Key Products : Parle - G , Hide and Seek ,Krackjack ,Hide & Seek

Milano ,Magix ,Digestive Marie ,Monaco ,Parle Marie ,Kreams ,Milk

Shakti ,Parle 20-20 Cookies ,Golden arcs ,Nimkin ,Kreams Gold ,Chox

,Monaco Jeera Surya Food & Agro Ltd : Manufacturing & selling of biscuits under

brand Priyagold. Company has three plants located in Greater Noida,

Lucknow&Surat. They also outsource some of our requirements to

another plant located in Hyderabad. Capacities have reached 1, 50,000

MT p.a.


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Key Products : Classic Cream , Butter Bite ,Kids Cream ,Bourbon ,Big

Boss ,Marie Lite ,Magic Gold ,CNC ,Cheese Cracker ,Snacks ZigZag

,Don ,Coconut Crunch ,Cheez Bit Classic Salt ,Chatpata

ITC Ltd: In July 2003, ITC forayed into the Biscuits market with the

Sunfeast range of Glucose, Marie and Cream Biscuits. Sunfeast with a

current market share of ~10% is now clearly established as a credible

third brand.

Key Products : Sunfeast Milky Magic ,Sunfeast Marie Light ,Sunfeast

Golden Bakery ,Sunfeast Dark Fantasy ,Sunfeast Dream Cream

,SunfeastSnacky ,Sunfeast sweet 'n salt ,Sunfeast Nice ,Sunfeast

Benne Vita Flaxseed Biscuits ,Sunfeast Special

Anmol Biscuits Ltd:Anmol is a popular brand of eastern & northern

region, having manufacturing facilities in W.B & U.P.

Key Products : Lemon Mazaa , Funfill Choco Vanilla , Yummy - Milk

Cream , Tip Top KajooKurkure Masala, Coconutty , Thin Arrowroot ,

Marie,2 in 1, Butter

Market share of Britannia:-

Britannia Industries Limited is an Indian company based in Kolkata thatis famous for its Britannia and Tiger brands of biscuit, which are highlyrecognized throughout the country. Britannia is one of Indias leadingbiscuit firms, with an estimated 43% market share.

The Company's principal activity is the manufacture and sale ofbiscuits, bread, rusk, cakes and dairy products.

company Market share (%)

Britannia 43%Parle 37%

Sunfeast 19%Priya gold 11%

anmol 8%others 23%
http://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Ruskhttp://en.wikipedia.org/wiki/Dairy_productshttp://en.wikipedia.org/wiki/Dairy_productshttp://en.wikipedia.org/wiki/Ruskhttp://en.wikipedia.org/wiki/Kolkata


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SWOT analysis of Britannia:-

(Source: - made by Mr Sangram Kumar Dash)

Highly advertised

brands such as

PARLE. Margin war among

the major Brands. Increase in sale of

cheap local bakery

products.

Retaining loyal

retailers or

wholesalers. BRITANNIA

products in medicalshops.

Improper and

irregular supply. Dependent on its

flagship brand,

Tiger.

Poor packaging in

glucose biscuits.

Lack of schemes for

retailers and

distributors.

Low price Sizeable market share

Variety of products

An experienced team of

sales

Deep and effective

coverage

Largest distribution

system

STRENGTH WEAKNESS

THREATSOPPERTUNITY


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BCG matrix of Britannia:-

Star

Stars have high market shares that operate in growing markets. The product

at this stage should be generating positive returns for the company.

Cash Cow

These are products at the mature stage of the lifecycle, they generate high

amounts of cash for the company, but growth rate is slowing.

Question Mark

These are products with low market share but operate in high market growth

rates. The company puts a lot of resources in this product in the hope that it

will eventually increase market share and generate cash returns in the future.

Dogs

These are products which have low market shares and low market growth

rates. The

options for many companies is to phase these products out, however some

organisation do go for the strategy ofre-inventing and injecting new life into

the product.


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The organizational hierarchy:-

SALES MANAGER

AREA SALES MANAGER

SALES OFFICER

TERRITORY SALES INCHARGE

PIONEER SALES MANAGER (PSM)-not authorised by co.AND

ROUTE SALES ADVISOR (RSA)-for merchandising

Distribution network of Britannia:-


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Achievements of Britannia Industries ltd.:-

1892 -The Genesis - Britannia established with an investment of Rs. 295 inKolkata

1910 - Advent of electricity sees operations mechanised

1921 - Imported machinery introduced; Britannia becomes the first companyeast of the Suez to use gas ovens

1939 - 44

Sales rise exponentially to Rs.16,27,202 in 1939 During 1944 sales ramp up by more than eight times to reach Rs.1.36

crore

1975

Britannia Biscuit Company takes over biscuit distribution from Parry's

1978

Public issue - Indian shareholding crosses 60%

1979

Re-christened Britannia Industries Ltd. (BIL)1983

Sales cross Rs.100 crore

1989

The Executive Office relocated to Bangalore.

1992

BIL celebrates its Platinum Jubilee

1997

Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to newmission: 'Make every third Indian a Britannia consumer'

BIL enters the dairy products market

1999

Britannia Khao World Cup Jao" - a major success! Profit up by 37%


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2000

Forbes Global Ranking - Britannia among Top 300 small companies

2001

BIL ranked one of India's biggest brands No.1 food brand of the country Britannia Lagaan Match: India's most successful promotional activity of the

year Maska Chaska: India's most successful FMCG launch

2002

BIL launches joint venture with Fonterra, the world's second largest dairycompany

Britannia New Zealand Foods Pvt. Ltd. is born Rated as 'One amongst the Top 200 Small Companies of the World' by

Forbes Global Economic Times ranks BIL India's 2nd Most Trusted Brand

2003

'Treat Duet'- most successful launch of the year Britannia Khao World Cup Jao rocks the consumer lives yet again

2004

Britannia accorded the status of being a 'Superbrand' Volumes cross 3,00,000 tons of biscuits

2005

Re-birth of Tiger - 'SwasthKhao, Tiger Ban Jao' becomes the popular chant! The new plant in Uttaranchal, commissioned ahead of schedule.

2006

Britannia acquires 51% stake in Bangalore-based bakery foods retailerDaily Bread.

2007

Britannia industries formed a joint venture with the KhimjiRamdas Groupand acquired a 70 percent beneficial stake in the Dubai-based StrategicFoods International Co.

Britannia NutriChoiceSugarOut range introduced - 1st of its kind of biscuitsto be launched in India with "No Added Sugar.

2009


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Britannia Industries buys out New Zealand's Fonterra from existing dairy

joint venture, Britannia New Zealand Foods (BNZF). BNZF became a 100

per cent Britannia subsidiary and was renamed Britannia Dairy Private

Limited (BDPL).

Recognizing the changing global trends & health benefits of removing

transfats, Britannia is the first Bakery brand in India to remove Trans fats

from its products.

Wadia Group acquired stake holdings from Group Danone and becomes

the single largest shareholder in BIL.

2010

Britannia was presented the Master Brand 2010 Award by CMO Council inNovember 2010.

Rotary Club of Chennai awarded CSR Award to Britannia in November, forour work in nutrition.

2011

Britannia received the Most Respected Company Award 2011 fromBusiness world.

Bourbon received the Most Popular Confectionery Product Preferred By

Youth (Biscuit) Award.

Code of Business Conduct in Britannia:-


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The reputation that Britannia has built over the years for high ethical standardsis one of our greatest business assets. To share the responsibility to preserveand enhance this asset, the company has documented the Code of BusinessConduct (COBC) for its employees.

Responsibilities of Employees of Britannia:

Maintaining ethical standards, including appropriate accountingcontrols;

Identify, surface and resolve ethical issues with great speed; Corporate assets (physical and intellectual) must not be used for

personal benefit;

Workplace Responsibilities:

Being committed to fair employment practices; Being committed to a workplace free from drugs and any kind of

harassment or intimidation of employees;

Representing Britannia to Customers and Other ExternalConstituencies:

Treating customers, suppliers and competitors fairly; Maintaining high standards of quality; Speeches, media interviews, and other public appearances in

connection with Britannia must first be approved internally;

Privacy / Confidentiality:

Protect proprietary and confidential information at all times inaccordance with applicable law;

Keep employees' information confidential

Investments and Outside Activities:

Trading in the securities of Britannia or any other company while in

possession of "inside" information is illegal;

Avoiding real or perceived conflicts of interest in areas including

investments or outside business activities, among others.

Corporate Social Responsibility:

Catering to the national interest Committed to be a good corporate citizen The company prohibits any payment of bribes.

LITERATURE REVIEW:-


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Digital Displays and Experiential

Marketing

By: James Barry(source-http://www.isnare.com/?aid=226250&ca=Marketing)

Experiential marketing is achieved by creating an in-store experience that

differs from the competition. The theory is that your unique store environment

will draw traffic and keep customers coming back. Digital displays have

proven to be a highly effective tool for this type of marketing.

A lot of research has gone into determining what makes a good in-storeexperience. Retailers who succeed in creating a positive experience for their

customers focus on the needs of the customers:

Make it quick and easy to find what they are looking for.

Answer a question and provide information to solve a problem for the

customer.

Compel customers to visit your store often.

Popup Display Design Tips and Tricks
http://www.marketingarticlelibrary.com/profile/James-Barry/7259http://www.marketingarticlelibrary.com/profile/James-Barry/7259http://www.marketingarticlelibrary.com/profile/James-Barry/7259


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By: Rick Hendershot (source-http://www.articlesbase.com/marketing-articles)

A Popup Display normally covers the entire back "wall" of your space. This

means that a properly designed Popup Display provides you the opportunityto make a bold statement about your company and your most important

product or service.

A Popup Display not only serves as a backdrop to your display, but gives your

area definition, and allows you to focus attention on a specific image.

Well-designed popup displays make a powerful statement about your productor service.

Of course it is possible just to throw the popup up against the back wall, stick

a table in front of it, spread out your brochures, and away you go. But you can

do better than that. Pay special attention to the space requirements and the

specifications of your popup display, and then design your space around it.

Maximize the dramatic impact of the design

Focus on your "Primary Product Message

Use a slogan

Use simple, bold graphics
http://www.marketingarticlelibrary.com/profile/Rick-Hendershot/330http://www.marketingarticlelibrary.com/profile/Rick-Hendershot/330http://www.marketingarticlelibrary.com/profile/Rick-Hendershot/330


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Shoestring Merchandising Tips for Retail

Store Display

By: - Melanie McIntosh

Upgrade lighting whenever you can. Retail store windows especially

need to be well lit.

An inexpensive can of paint can be used to paint your fixtures to

match, or touch up chips and keep things looking new.

Fabric and paper are two valuable display helpers. Use them under orbehind a display to provide a backdrop, use a scarf to add colour and

movement to a static arrangement.

Use magazines as a source of ideas for displays. Find time to go to the

library so you can browse for free.

Take a seminar or spend a couple of hours with a retail consultant to

learn some display and merchandising techniques.

Pretend you are a customer and take a look at your storefront. Try tosee the store as the customer would see it.


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Chapteriii

Research Methodology


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Method of data collection:-

Systematic and scientific method of collecting new information called as

research methodology.

The study is relied on primary as well as secondary data.The primary data is collected through personal interviews using structured

Questionnaire.

The Secondary is collected from management of the Britannia Industries Ltd,

various books,journals and Internet.

Sample:-

The sample represents a subset of manageable size. Samples are collectedand statistics are calculated from the samples so that one can makeinferences orextrapolations from the sample to the population.

This process of collecting information from a sample is referred to assampling.

The best way to avoid a biased or unrepresentative sample is to select arandom sample, also known as a probability sample.

Objective of the study:-

All companies are having their own planning and business strategies but the

company who ishaving the best, is the most successful company among its

competitors. So the company can getsuccess within its competitors by

applying best and effective marketing strategies.

To identify the visualize merchandising and product image in market.

To know the offers to customer, retail outlets and competitors offer

given to customer retail outlets.

To know the impact of merchandising.

To know the brand preferences by the customers.

To track the sales in the particular beat.
http://en.wikipedia.org/wiki/Inferencehttp://en.wikipedia.org/wiki/Extrapolationhttp://en.wikipedia.org/wiki/Sampling_%28statistics%29http://en.wikipedia.org/wiki/Random_samplehttp://en.wikipedia.org/wiki/Random_samplehttp://en.wikipedia.org/wiki/Sampling_%28statistics%29http://en.wikipedia.org/wiki/Extrapolationhttp://en.wikipedia.org/wiki/Inference


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Data collection:-

Personal interaction with company guide.

Personal interaction with retail outlets and modern stores.

Discussion with other officials.

Questionnaires, Surveys and suggestions

Primary Data collected through Direct Observation for sales

Tracking in Britannia:-

As per the sales track I had gone through a direct observation on thebeats underSAI PRIYA DISTRIBUTERS, ALWAL a distributer under

Britannia industries LTD. I have covered 10 beats under that distributer.

Route map of those 10 beats

Map-3.1


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Sales tracking in those beats:-

Beat name Pre

merchandising

sales

Post

merchandising

sales

Increase Decrease

Kompally 38720 42260 3540

Gedimetla 31680 29920 1760

West

venkatpuram

33460 34130 670

Old bowenpally 43890 47610 3720

New bowenpally 41560 36610 4950

Sikh village 25530 34290 8760

karkhanna 28230 31360 3130

Tirumalghery 36810 34920 1890

Lothkunta 19250 22530 3280

Picket mahendra

hill

14590 16330 1740

Total 313720 330590 16870

Tab 3.1


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Fig-3.1

In the above graph it clearly shows about the increase and decrease of

sales of Britannia products in respective beats.

As we see the graph there are 10 beats in which the sales of Britannia

increased in 7 beats whereas the sales also decreased in 3 beats. The sales increases due to the effect of merchandising work done in

those particular beats.

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

efect of merchandising on sales

Pre merchandising sales

Post merchandising sales


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Fig-3.2

In the above graph we see the total sales increased in those beats.

The pre merchandising sales was RS. 313720 but after merchandising

the sales is RS. 330590. The total increase in sales is RS. 16870 which is approximately 5.6%.

Total pre merchandising sales Total post merchandising sales

Series1 313720 330590

305000

310000

315000

320000

325000

330000

335000

AxisTitle

increase in sales


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Snap shots during merchandising:-


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Chapter 4

Data collection/Analysis &

Interpretation


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Research in FMCG is very essential, as customer preferences and choices

are dynamic and change frequently, the FMCG Company needs to

understand these before redesigning its processes forenhancing business

and many more. Since customer interaction takes place at the store and

nearstore, there is a big opportunity to gather first-hand information and

feedback from customersthrough research and survey. Research is carried

out at the FMCG retail level for concept testing,business feasibility analysis,

identification of the effect of merchandising, customer needs, activities of

competitors etc.

Collection of primary data:-

As per the survey I have designed the sample as follows:-

I have selected the units for my survey was the retail outlets which

include large kiranas, small kiranas and bakeries.

The sample size is 100.

The method I have used is simple random sampling.

For the analysis I have selected 8 questions, these are as follows:-

Do you purchase biscuit for your shop?

Which brand you would like to purchase more in quantity?

What influenced your decision to purchase a Britannia biscuit?

According to merchandizing which brand do you think is the toughest

competitor to Britannia?

Does merchandizing increase the sales of Britannia?

Which type of merchandising activity do you like most?

According to you which shelf-space for Britannia products does create

maximum impact in the customers mind?

What do you think about the merchandizing activity of Britannia?


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Tab 3.1

Options ResponsesYes 100No 0

On the basis of the above respondents, it is to be interpreted the graph (3.1)

shows that out of 100 respondents 100 retail stores purchase biscuit i.e.

100%.

0

20

40

60

80

100

120

Yes No

fig-3.1

Response


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Tab-3.2

company Responses

Britannia 68

Parle 20

ITC 8

Cadbury Oreo 4

On the basis of the respondent, it is to be interpreted the graph (3.2) shows

that out of 100 respondents maximum outlets are willing to buy Britannia

biscuits in more quantity and after Britannia they are giving priority to Parle

and others.

68%

20%

8%

4%

Response

Britannia Parle ITC Cadbury Oreo


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Tab-3.3

factors Response

Demand by consumer - 36

Brand name and reliability 41

Quality- 15

Advertisement (merchandising)- 8

On the basis of the respondent, it is to be interpreted the above graph(3.3)

shows that maximum respondent buy Britannia due to the brand name i.e.

41% and then 36% respondent buy due to demand by customers and rest of

them buy 15% due to quality and 8% due to merchandising.

36%

41%

15%

8%

fig- 3.3

a- Demand by consumer -

b- Brand name and reliability

c- Quality-

d -Advertisement

(merchandising)-


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According to merchandizing which brand do you think is the toughest

competitor to Britannia?

Tab-3.4

competitor Response

Parle-g 32

ITC 27

Cadbury Oreo 39

Mcvite 2

As per the respondents, it is to be interpreted the above graph (3.4) shows

that the Cadbury Oreo is the most competitor of Britannia according to

merchandising i.e.39% after it Parle is also the second competitor which kept

32% according to the respondent.

32%

27%

39%

2%

fig-3.4

Parle-g

ITC

Cadbury Oreo

Mcvite


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Tab-3.5

factors responses

Strongly agree 70

agree 25

Disagree 5strongly disagree 0

As per the respondents, it is to be interpreted the above graph (3.5) showsthat

maximum numbers of respondent i.e. 70% are strongly agreed that

merchandising increases the sales of Britannia whereas no single respondent

strongly disagree in this case.

70%

25%

5% 0%

fig-3.5

Strongly agree

agree

Disagree

strongly disagree


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Tab- 3.6

Types of activity Responses

Full set (danglers, suspenders,stickers, posters, tape, baskets andbanners)

69

Medium set (danglers, stickers andposters)

26

Low set (posters and stickers) 5

As per the respondents, it is to be interpreted the above graph shows(3.6) that

maximum number of respondent like to full set of merchandising i.e. 69% and

26% respondent like medium set and rest 5% like low set of merchandising.

Full set (danglers,

suspenders,

stickers, posters,

tape, baskets and

banners)

69%

Medium set

(danglers, stickers

and posters)

26%

Low set (posters

and stickers)

5%

fig 3.6


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According to you which shelf-space for Britannia products does create

maximum impact in the customers mind?

Tab- 3.7

Types of space Responses

Front shelf-space (Point of Purchase) 82

Side shelf rack 15

Back shelf rack 3

As per the respondents, it is to be interpreted the above graph(3.7) shows thatthe maximum respondent i.e. 82% like to keep Britannia biscuit in front shelf ,15% respondent like to keep in side shelf and only 3% respondent like to keep

in back shelf.

82%

15%

3%

fig- 3.7

Front shelf-space (Point ofPurchase)

Side shelf rack

Back shelf rack


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Tab- 3.8

factors Responses

Impressive 25

Satisfactory 67

Unsatisfactory 8

As per the respondents, it is to be interpreted the above graph(3.8) shows thatmaximum respondent i.e. 67% satisfy whereas 25% respondent thoughtimpressive and rest 5% thought that unsatisfactory.

25%

67%

8%

fig- 3.8

Impressive

Satisfactory

Unsatisfactory


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Chapter-vFindings, suggestions

and conclusions


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Findings of the study:-

Here it is found that in the current market scenario every FMCG retail

outlet is keeping biscuits in their shops in the ratio of 1:0.

According to the brand preference the outlets are willing to purchaseBritannia biscuits in more quantity as compared to others whereas

Parle, ITC and Cadbury Oreo have a smaller brand impact in the ratio

of 6.8:2:0.8:0.4.

If we see the influence factor then we can found that outlets are willing

to buy Britannia biscuits due to the brand name and then after for

customer demand whereas quality influences little beat at last

merchandising come to their mind. According to the competition of merchandising, Cadbury Oreo is the

toughest competitor of Britannia. Parle and ITC sun feast are also

creating very good competition in this run but mcvite has so less

competition in the ratio of 3.2:2.7:3.9:0.2.

Merchandising can use as a tool to increase the off take off a company

because maximum respondents strongly agreed and many respondent

agreed that it may increase the sales whereas no body disagreed inthe ratio of 14:5:1:0.

Then according to the merchandising activity maximum outlets like to

use full set merchandising as compared to medium set and low set in

the ratio of 6.9:2.6:0.5.

According to the shelf space it is found that front shelf is meant to

create maximum impact in the customers mind as compared to side

shelf-space and back shelf-space in the ratio of 8.2:1.5:0.3. Regarding to the merchandising activity of Britannia it is not so

impressive but according to maximum respondent it is satisfactory at

the same time it is not so unsatisfactory in the ratio of 2.5:6.7:0.8.

Cadbury Oreo merchandise is best accepted as up-to-date one and

thus it is competing with Britannia in this field of biscuit.

Customers are considered as the blood life of any business in todays

scenario. Making one customer delight will give us another newcustomer.


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Parle is giving the best customers service and stands first among its

competitors. It maintains its CRM very effectively and efficiently.

ITC sunfeasthas a good visual merchandising among its all 4

competitors. Creating awareness through Internet or through Audio/ visual or

through Print media is best done by Cadbury Oreo.

According to the variety of product (product lines) Parle is competing

with Britannia in this respect.

Distribution is regarded as one of the important factor in FMCG

industry; here in my study Parle has a good distribution network than

Britannia.


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Recommendations:-

The merchandise should be up to date and should create impulse in

the mind of customer.

More efficient and effective Invest in distribution network.

It should take steps to create more outlets by offering, Catchy &

Intelligent schemes.

The attitude of salesman with the retail outlet owners must be helping

& communication in formal way.

Exchange Policies of biscuits due to expiry or damage should be

properly communicated to customers during Sale.

The salesman appointed by the company must literate and should

have convincing power.

The merchandise activity should be entertained in every outlet not only

to key outlets.

Trained merchandisers should be appointed.

As the technology is growing day by day so the merchandise tool

should provide according to the technology.

Advertisement through wall Prints; Internet and Audio/ visual media

should be increase for Britannia.

The relation of distributor with the performance coach should be good

and the relation of pc with the salesman should be good enough.

The sales man should follow the 7 steps of PDA while taking order.

The company should appoint merchandiser under every distributer to

increase in off take of the company.


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Conclusion:-

After going thick on the thing, now time is to make a complete

picture,whilemaking a product a SKU of the shop retailers think about the

customer needs and they promote the brandwhich provides them highest

satisfaction.

They expect return in the form of profit margin,company schemes, window

display and references of the shop. Among these,company schemes make

the differences and are the highest source of motivationafter profit margin.

FMCG retailing demands a constant push from the company, marketers need

to use advertising and brand building strategies to address thediscerning

buyers and retail push to in different buyers.The manufacturer shouldunderstand consumer behaviour because retailers

can't help quality and price. It isonly up to dealers said it is demand they sell

Britannia that at retailshop it is brand popularity, which determine the

purchase of biscuit.There is a greater need to understand the retailer

behaviour considering them as ateam working for the company may help

them to be attached to the company.There should be feeling of belonging to

the company in inner of the retailers.Setting values club for retailers so that they may exchange views with

thecompany and help in understanding consumer behaviour.

FMCG retailing in India is surely poised for a takeoff and will provide many

opportunities both to existing players as well as new entrants.

The country is witnessing a period of boom in FMCG, mainly on account of a

gradual increase in the disposable incomes of the middle and upper-middle

class households as well as the outlets are willing to engage more and more

amount for creating their image in the current market.

More and more corporate houses including large real estate companies are

coming into the retail business, directly or indirectly, in the form of mall and

shopping center builders and managers.


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Bibliography


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BIBLIOGRAPHY

BOOKS:-

Marketing Management. ----Kotler & Keller

Research methodology --- PEARSON

MAGZINES:-

Business worlds

Indian FMCG

India today

Websites:-

www.goggle.com

http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-

in-images-

www.aboutus.com

www.businessworld.in

www.epaper.timesofindia.com

http://www.ibmabiscuits.in

http://foodbizdaily.com/articles/32688-news-biscuit-industry-inindia

www.britannia.co.in

http://www.naukrihub.com/india/fmcg/top-companies/
http://www.goggle.com/http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-in-images-http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-in-images-http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-in-images-http://www.aboutus.com/http://www.businessworld.in/http://www.epaper.timesofindia.com/http://www.ibmabiscuits.in/http://foodbizdaily.com/articles/32688-news-biscuit-industry-inindiahttp://foodbizdaily.com/articles/32688-news-biscuit-industry-inindiahttp://www.ibmabiscuits.in/http://www.epaper.timesofindia.com/http://www.businessworld.in/http://www.aboutus.com/http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-in-images-http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-in-images-http://www.goggle.com/


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SAMPLE QUESTIONNAIRE:

Dear Sir/Madam,

As a part of PGDM course in VishwaVishwani Institute of System and Management, we aredoing a project on impacts of visual merchandising on the products of Britannia industriesLTD, Please give your valuable inputs for this project by filling up the following form whichwould take around 03 minutes of your time. The data collected only for academic purpose andwe ensure full confidentiality of the data provided by you.

Your time and response is really appreciated. (Please do tick only in one option)


Yes. ( ) No. ( )


Britannia () Parle ( ) ITC () Cadbury Oreo ( )


a- Demand by consumer ( ), b- Brand name and reliability ( ),

c- Quality-( ) d -Advertisement (merchandising)-( )

According to merchandizing which brand do you think is the toughest competitor toBritannia?

Parle-G ( ) ITC Biscuits ( ) Cadbury ( ) Mcvite ( )


Strongly agree ( ), agree ( ), Disagree ( ), strongly disagree ( )


Full set (danglers, suspenders, stickers, posters, tape, baskets and banners) - ( )

Medium set (danglers, stickers and posters) - ( )

Low set (posters and stickers)-( )

According to you which shelf-space for Britannia products does create maximumimpact in the customers mind?

A-Front shelf-space (Point of Purchase) ( ), B- Side shelf rack-( ), C-Back shelf rack ( )


A-Impressive( ), B- Satisfactory- ( ), C- Unsatisfactory ( )


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Outlet Name:Thank you for your Valuable input.

Project Final Sangram Kumar Dash

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Transcript of Project Final Sangram Kumar Dash