SUMMER TRAINING REPORT

ON

STUDY ANALYSIS OF DISTRIBUTER AND CUSTOMER

PERCEPTION ABOUT “FRISSIA”

Submitted in partial fulfilment of the requirements of the two year

Post Graduate Programme (PGP).

Submitted by

SAURABH GARJOLA

Roll No: PG20090264

Batch: 2009-2011

IILM Institute for Higher Education

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DECLARATION  

  I hereby declare that the Project work entitled, STUDY ANALYSIS OF DISTRIBUTER

PERCEPTION ABOUT “FRISSIA” submitted by me for the partial fulfillment of the Post

Graduate Program (PGP) to IILM Institute for Higher Education, is my own original work

and has not been submitted earlier either to IILM or to any other Institution for the fulfillment of

the requirement for any course of study.  I also declare that no chapter of this manuscript in

whole or in part is lifted and incorporated in this report from any earlier / other work done by me

or others.

 

Place               : New Delhi                                                                                                

Date              :  8/7/2010                                                                                                                 Signature of Student

 

 

Name of Student:- SAURABH GARJOLA

 

Address:- A-86, 2nd Floor, 

               A.V.Nagar, Near Ansal Plaza,

New Delhi.

   

                                         

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ACKNOWLEDGEMENT

I feel great pleasure for the completion of this summer project. At the very outset I would

express my sincere thanks and deep sense of gratitude to personnel who helped me during the

collection of data and gave us rare and valuable guidance for the preparation of this report.

I take this opportunity to express our deep sense of gratitude and appreciation to Miss

Bhawana chandel (Hector Beverages pvt ltd.) for assistance, motivation, and being a continual

source of encouragement for us.

I am thankful to my mentor Mrs Piya Bakshi for his timely guidance, cooperation and

encouragement.

I also express my gratitude towards my parents and sincere thanks to my friends, well wishers

for their encouragement and kind co-operation to complete this report.

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Executive Summary

The purpose this report is to summarize my internship project for my evaluation. This project was done at Hector Beverages private ltd. and was done nearly for two month duration at their gurgaon office.

This report based on direct marketing and Market Research of Hector Beverages and my objective is to share my practical experience and professional life, which I got during the internship period. This report is a brief description and summary of word which I had done during my internship period in Hector Beverages Private Ltd. Gurgaon. The internship program provide me the great opportunity of being exposed to actual business, dealing and opportunity of professional insight which help me in future. It was a great experience for me to work in this organization. My theoretical knowledge about my subject become more strong after working practical.

During the internship I use to go gym, chemist and doctors to tell about the product and also make sale over there, I use to give questionnaires to be filled by the customers and distributers for my market research of protein drink. I learned many tips of direct marketing and also learned how to present your self in front of Customer.

In this report I had detailed company analysis and target market. these are also correlated with the concept taught in 1st year of MBA.the project given and work done had been explain in the report later.The final result, conclusion, and expectation have been mentioned at the end of the report.

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CONTENTS

[1] INDUSTRY STUDY………………………………………… 6

[2] ORGANIZATION STRCTURE……………………………… 10

[3] PRODUCT…………………………………………………… 13

[4] COMPETITORS………………………………………………. 16

[5] INTRODCTION OF PROJECT………………………………. 20

[6] OBJECTIVES………………………………………………… 23

[7] METHODOLOGY…………………………………………… 24

[8] GRAPHS……………………………………………………… 28

[9] FINDINGS……………………………………………………. 38

[10] CONCLUSION……………………………………………… 39

[11] RECOMMENDATIONS…………………………………….. 40

[12] REFERENCES……………………………………………….. 41

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INDUSTRY STUDY

The India FMCG industry is the 4th largest in the economy & has a market size of US $ 13.1

billion well established distribution networks, as well as intense competition between the

organized & unorganized segments are the characteristics of these sector. FMCG in India has a

strong & competitive Multinational Corporation presence across the entire value chain. It has

been predicted that the FMCG market will reach to US $ 33.4 billion in 2015 from

US $ 11.6 billion in 2003. The middle class & the rural segments of the Indian population are the

most promising market for FMCG, give brand makers the opportunity to convert them to the

branded products.

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The milk shortage of the sixties was what first fueled the growth of the sector with availability of

milk being rare & qualities always being suspect, milk addictives were in high demand. The

following decades saw the sector arousing along at an 8 to 10% growth rate, with milk shortages

fuelling growth, lot of companies jump on to this band wagon. The sector saw a flurry of

launches from Complan, Nutramul, Boost, Maltova, etc.

The eighties were the era of self reliance. Operation flood ensured the availability of good

quality milk & restrain the consumers motivation to buy addictives from “taste”. The

manufacturers quickly jump on to “energy” plank. A decade later of flurry of re-launches,

nutrition’s, freebies galore – Health Food Drinks are fighting to regain steaming as the industry

goes through trying time. Malt Food Health Drink Market is divided in white & Brown

Beverages.

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BEVERAGE INDUSTRY:-

Consumption Patterns of Beverages

The average annual beverage consumption of US population as per according to the Beverage

Market research.

Annual Beverage Consumption

Beverage Percentage

Carbonated soft drink 26.22

Bottle water 14.36

Beer 11.34

Coffee 11.24

Milk 10.87

Fruit Beverage 6.97

Tea 4.11

BEVERAGE INDUSTRY IN INDIA:-

The Indian beverage industry faces over supply in segments like coffee and tea. However, more

than half of this is available in unpacked or loose form. Indian hot beverage market is a tea

dominant market. Consumers in different parts of the country have heterogeneous tastes. Dust

tea is popular in southern India, while loose tea in preferred in western India. The urban-rural

split of the tea market was 51:49 in 2000. Coffee is consumed largely in the southern states. The

size of the total packaged coffee market is 19,600 tonnes or $87 million. The total soft drink

(carbonated beverages and juices) market is estimated at 284 million crates a year or $1 billion.

The market is highly seasonal in nature with consumption. varying from 25 million crates per

month during peak season to 15 million during offseason. The market is predominantly urban

with 25 per cent contribution from rural areas. Coca cola and Pepsi dominate the Indian soft

drinks market. Mineral water market in India is a 65 million crates ($50 million) industry. On an

average, the monthly consumption is estimated at 4.9 million crates, which increases to 5.2

million during peak season.

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The Rs 250-crore branded energy drinks sector in India is growing at the rate of 60% as

compared to a 10% growth in the Rs 7,000-crore soft drinks market. The energy drinks market is

expected to reach Rs 1,100 crore by 2010-end.

Protein is an essential component for our body, Protein is one of the body's main building blocks

for muscle, bone, skin, and other tissues. Used often by athletes, protein shakes come in many

combinations of protein, carbohydrates, and fats. They can range from 100% protein to mostly

carbohydrates with a little added protein and fat. Protein shakes come in a variety of flavors in

powder form or in ready-to-drink packages, such as cans or foil packs. Now in India protein

drinks are on high demand,as the people are getting aware about there health, they are trying to

quit cold drinks and other harmful drinks and switching over to health drinks and protein drinks.

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ORGANIZATION STRUCTURE

Structure of Hector

CEO COO

H.R Sales Marketing I.T

Manager Manager Manager Manager

Company History:-

Hector Beverages is a Philadelphia based company and is focusing on Indian Consumer. Hector

Beverages is the new name for the Beverages market but,it has came with the genuine product

for the Indian people which they need for there daily life. Hector Beverages came into the Indian

market on October 2009 with a mission ,to give Indian people Healthy and Tasty drink for there

daily routine through there product. As, there are many beverages offerings in the developed

world are a lot better than those in the developing world.

The product which they are offering to the Indian Consumer is Frissia(Protein Drink). It is the

well-researched protein deficiency even amongst affluent Indians and the Product , jointly

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developed with Solae LLC (a DuPont venture and the world’s leading protein research

company),uses the best natural identical flavors:-

1) Chocolate.

2) Vanilla.

Making it a sensational combination of natural goodness, cutting-edge science and great taste.

Mr. Neeraj kakkar the CEO of Hector beverages, completed his MBA from MDI Gurgaon in

1998 and worked with coke for many year, and came with the idea of Frissia in 2009 with a

mission to give Indian people Healthiest drink with great taste.

Mr.Suhas the COO of Hector Beverages private limited company, completed his MBA from IIM

Calcutta in 2003 and he also worked in coke, Suhas came with the Marketing idea of Frissia in

India and trying to give Frissia as the top position in protein drink market.

Protein is what makes our body, skin, hair, nails, and helps many other things, if it is taken in

everyday diet and in proper quantity, which is possible made by Frissia therefore it is known as

Healthiest Snack in the World.

Ownership Pattern:-

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Hector Beverages is a Private limited Company, there are two partner in the company Mr. Neeraj

kakkar and Mr. Suhas.

Private ltd company(with two partner)

Mr. Neeraj Kakkar Mr. Suhas

(CEO) (COO)

Departments:-

Department of Hector Beverages has been divided into four parts, they are as follows:-

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DEPARTMENTS

HUMAN RESOURSE

LOGISTIC SALES AND MARKETING

INFORMATION TECHNOLOGY

PRODUTS

Frissia, The Protein drink product of Hector beverages, which is one the finest protein drink for

the any age group. It complete 20% of daily protein requirement in per serve. It is the finest

protein drink, jointly developed with solae LLC(a DuPont venture and world’s leading protein

research company), uses the best natural identical flavors:-

Chocolate from Firmenich SA.

Vanilla from Givaudan SA.

They both makes sensational combination of natural goodness, cutting-edge science and

great taste.

Nutritional Highlights of frissia per serving (125 ml).

As per reference daily intake:-

20% daily protein requirement is fulfilled.

10% of daily calcium requirement is fulfilled.

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Nutritional information of Frissia per 100 gm.

Energy(Kcal) 391.5

Protein(g) 34.1

Carbohydrates(g) 49.1

Of which Sugar(g) 39.3

Fat-total(g) 8.1

Saturated Fat(g) 3.7

Mono-unsaturated fatty acid(g) 3.4

Poly unsaturated fatty acid(g) 1.1

-trans fatty acids(g) 0.0

Cholesterol(mg) 0.0

Iron(mg) 9.3

Vitamin A(UI) 850.8

Calcium(mg) 359.5

Nutritional chart of vanilla and chocolate flavor:-

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Nutritional:-

Nutrients Vanilla per serving.

% of RDA revised Chocolate per serving.

% of RDA revised

Total calories(kcal) 120.1 6.005 117.5 5.8726Total Protein(g) 10.2 20.4 10.2 20.485

Carbohydrates(g) 15.4 5.345454 14.7 5.36154Of which sugar(g) 11.7 11.8

Fat-Total(g) 2.1 3.6 2.4 3.655-saturated fat(g) 0.9 1.1

-mono unsaturated fatty acid(g)

0.9 1.0

-poly unsaturated fatty acid(g)

0.3 0.3

-trans fatty acids(g) 0.0 0.0Cholesterol(mg) 0.0 0.0

VitaminsVitamin A(IU) 244.8 27.20 225.24 28.36Riboflavin(mg) 0.1 7.92 0.11 8.73

Vitamin B12(mcg) 0.3 11.70 0.29 12.19Biotin(mcg) 2.8 0.93 2.61 0.87

Vitamin C(mcg) 0.6 0.00 0.68 0.00Vitamin D(IU) 39.6 9.90 41.25 10.31Vitamin E(IU) 0.1 0.00 0.09 0.00Folate(mcg) 23.6 5.91 22.65 5.66

Pantothenic Acid(mg) 0.2 4.69 0.28 5.58Minerals

Calcium(mg) 102.4 10.24 107.85 10.79Chloride(mg) 43.2 1.88 46.22 2.01Copper(mg) 0.2 24.5 0.32 34.10Iodine(mcg) 7.9 5.28 8.25 5.5

Iron(mg) 2.2 27.52 2.78 34.71Magnesium(mg) 3.4 0.84 16.32 4.08Manganese(mg) 0.1 3.23 0.07 3.03Phosphorus(mg) 163.5 23.36 117.81 25.40Potassium(mg) 219.7 4.67 338.40 7.20Sodium(mg) 116.8 5.08 113.23 4.92

Zinc(mg) 1.1 9.76 1.26 11.42

Note:-% of RDA for Macronutrients is based on a 2000 calorie diet% of RDA for vitamin E chocolate flavor is 0.5

COMPETITORS

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There are many competitor in the field of protein drink, But the main competition of Frissia is

with Nutrilite Protein of Amway and Protein X of Cadila Healthcare. Already they both

Beverages had made good presence in the market, therefore I got the chance to make people

aware about the healthiest snack in the world i.e “Frissia” and at the time of my training I got to

know about the competition of protein drink in the market with each other by giving there best

product to the customer, it may be terms of price, quality or best channel of distribution.

Nutrilite:-

Nutrilite is product of Amway, it is a ‘complete protein’ which provides balanced amounts of

essential and non-essential amino acids vital for maintenance and rebuilding of cells and tissues.

It has a high protein content of 80% and provides a balanced supply of all nine essential amino

acids. It also provides the added benefits of naturally occurring soy, calcium and iron.

Amway says:-

The Protein for everyone.

It Provides at least 8gm of protein per 10 gram serving.

It is a Combination of high quality protein isolated from soy & milk.

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It Is stable under high temperatures.

Does not contain artificial sweeteners, colours or preservatives.

Nutrilite comes in different flavor:-

( NEUTRAL TASTING ) ( VANILLA TASTING ) (CHOCOLATE

TASTING)

The distribution channel of Nutrilite is Direct selling, Amway directly approach to there

customer:-

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AMWAY GROUP SALE PERSONS CUSTOMER

Protein X:-

Protein X is a trusted Brand in India, it provide good quality of protein and other nutrition. Most

of the doctor’s prescribe Potein X to needed patients. Protein X is a produt of Cadila Healthcare

ltd. Which has it’s coporate office in India and trying to increase there market share through

Protein X powder.

A single serving, when made with water, provides around 250 calories, and when mixed with

skimmed milk it provides around 320 calories.

Cadila say’s:-

It is specifically designed to provide balanced nourishment.

It provides high-quality protein.

It is gluten-free and suitable for vegetarians.

Its balanced goodness contains everything your body needs to recover fast from illness.

Protein X comes in single flavor i.e chocolate, Today ProteinX is focused on providing nutrition

products suitable for all members of the family.

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Cadpro:-

Cadpro is Cadila healthcare brand comes in chocolate flavor,it is also well known brand in the

protein drink market. Protein is an important building block of bones, muscles, cartilage, skin

and blood. Because your body doesn’t store protein, it’s essential to have an adequate daily

protein intake ,especially if you lead an active, energetic lifestyle. By giving you nearly a third of

the daily recommended value, cadpro High Protein Drink and it is in Powder form, are great

sources of the protein needed to enjoy and keep paced with your busy life.

An important component of every cell, your body uses protein to build and repair tissues, as well

as make enzymes, hormones and other body chemicals. It provides you with energy to power

you through the day, from the office to the gym. Here’s how one serving of Cadpro High Protein

Drink benefits you:

15 grams of high-quality protein to help build muscles, bones and skin tissue.

100% of the recommended daily intake for Vitamin C to help support a healthy immune

system.

A third of the recommended daily allowance of phosphorus, which helps with kidney

functioning and heart regularity, enhances the use of other nutrients and is a vital

component in healthy bones, teeth, gums and other tissues.

Contains calcium for forming, building and maintaining strong, healthy bones and teeth.

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INTRODUCTION OF PROJECT

Direct selling is a dynamic, vibrant, rapidly expanding channel of distribution for the marketing

of products and services directly to consumers. The purpose of this paper is to describe direct

selling and the benefits that it brings to the marketplace.

Benefits of Direct Selling

Research shows some of the most popular reasons people choose direct selling

are:

Direct selling is a good way to meet and socialize with people.

Direct selling offers flexible work schedules.

Direct selling is a good way to earn extra income.

Direct selling is a good way to own a business.

Earnings are in proportion to efforts.

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Salespersons knowledge

Company product competitors

knowledge knowledge

knowledge 1. History 1. Features

1.industry 2.size 2.

Benefits structure 3. Policies 3.

Price 2. Market

share

As per I have work with hector beverages, I had done direct selling and market research. First I

will explain how I sold the product. Before I started to sell the product, I research about the

protein drink company, product and competitors.

Company : Hector Beverages came into the Indian market on October 2009 with a mission ,to

give Indian people Healthy and Tasty drink for there daily routine through there product The

organization is new to enter in the market and it is located in south city (gurgaon). The structure

of the organization is flat. There are ten people in the organization.

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Product: The product which they are offering to the Indian Consumer is Frissia(Protein Drink).

It is the well-researched protein deficiency even amongst affluent Indians and the Product. It

launched two flavors in the market.

1) Chocolate.

2) Vanilla.

Making it a sensational combination of natural goodness, cutting-edge science and great taste. It

is also called energy drink, where people take unbalanced diet and protien. This product recover

unbalanced protien. The price of the product is 150.

Competitor : There are many competitor in the field of protein drink, But the main competition

of Frissia is with Nutrilite Protein of Amway and Protein X of Cadila Healthcare. Already they

both Beverages had made good presence in the market, therefore I got the chance to make people

aware about the healthiest snack in the world.

At last I sold the product retailer, chemist shop, doctor and friends. And through the direct

selling I had done market research also with customer and distributer.

Statement of problem

Customer perception towards “frissia”

Distributer perception towards “frissia”

Endorsement impact on “frissia”

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OBJECTIVES

The objective of study is that a trainee must understand the company. It’s achievement and task,

product and services and also to collect information about it’s competitors, product offered by

the company. So that after understanding and collecting information about organization and it’s

competitors, a trainee will be able to work well for the organization.

Research objectives:-

Creating awareness about “frissia” among dealers as well as consumers.

Identifying the Distribution channel for “frissia”

Study and analysis of Competitors of “frissia”

Direct selling of “frissia” to the customer

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METHODOLOGY

Market Research Problem:-

1) As, there are number of protein drink in the beverages market does people will jump to

new protein drink.

2) Determining the price factor for customer as well as margin for Distributer.

3) Advertisement brings the success to the Health Drink.

4) Indian people are changing the trend and coming to the supplement diet.

Research Design:-

I had conducted research by making two groups:-

1) Customer Perception.

2) Distributer Perception.

Characteristics of Customer:-

1) All are Gym Going people.

2) Age group 0f 18-50.

3) Good Knowledge of Protein Drink.

Characteristics of Distributer:-

1) All carry Protein Drink.

2) Chemist, General store and Doctors.

3) With Good Knowledge of Protein Drink.

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QUESTIONS TO CUSTOMER.

Q1:-How often do you drink protein drink?

Conclusion:-Most of the Respondent drink protein drink lot and say’s Indian people are

changing there perception for supplement diet, people are using supplement diet in many forms

like rivital, energy drink, Food supplement and many others.

Q2:- Is only gym going people attract towards Protein drink?

Conclusion:-Respondent say’s no, any Health conscious can take Protein drink, in market there

are number of light protein drink which can be taken by any person.

Q3:-After coming in market, what a new protein drink should do to increase his market share?

Conclusion:-Most of the respondent say’s advertisement through T.V or print media is the best

way to make Customer, people attract more through t.v promotion.

Q4:-Is taste matters in protein drink?

Conclusion:-Respondent say’s no health means no taste only health, it doesn’t matter drink is

tasty or not but, it should be effective for health.

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QUESTIONS TO DISTRIBUTER

Q1:-What you think on what basis customer buy protein drink?

Conclusion:-Respondent say’s generally t.v adds attract customer to buy any particular protein

drink and many of the customer buy on the prescription of doctor’s and gym instructor.

Q2:-Before buying the protein drink what are your criteria?

Conclusion:-Respondent say’s good margin in any product makes us to sell the product and

demand is also one of the factor to sell protein drink.

Q3:-How demand can be generate?

Conclusion:-T.V is the best medium to generate demand, one respondent gave example, like any

Deo or perfume launched in the market it is broadcast on t.v in attractive style and it comes to the

eyes of many viewer, same can be done with FMCG product.

Methodology of research:-

“Discussed with Customer and Distributer at the time of Direct Sale”

At the time of sale I Research to, many customer and gym instructor who told me about many

protein drink in market and what should be the nutritional needed to a normal person and to gym

going people.

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Target Group:-

My target group was:-

1) Health conscious people, but not going to gym.

2) Gym going people.

3) Chemist.

4) General stores.

5) Doctors.

Sampling technique:-

I had carried interview of Chemist and general stores at the time of sale, and done group

discussion with gym instructor people coming to gym and Health conscious people. There was

100 sample from both customer and distributer with whom I carried interview at the time of sale.

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GRAPHSGraph of Customer

A lot20%

once in a week28%2-3 in a week

28%

Hardly a month 24%

How often you drink protein drink

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Yes52%

No48%

Drinks affect your livelihood

Retail shop 8%

chemist shop 63%

Malls13%

other17%

From where you purchase

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Brand name 40%

price factor8%

Addective taste20%

Word of mouth32%

Reason to try new protein drink

Strongly agree36%

nither agree nor disagree40%

disagree16%

strongly disagree8%

celebrity endorsement is right way

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No100%

Heard about frissia

sales person100%

How do you know about frissia

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Yes8%

No92%

Know the flavor of frissia

good24%

average36%

bad40%

how is the taste

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Yes32%

No68%

Will you buy frissia

Graph of distributer

Yes100%

Customer ask for protein drink

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15-2552%

26-3532%

36-4512%

46-554%

Age group

15-2552%

26-3532%

36-4512%

46-554%

Age group

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Nutrilite50%

Protein X38%

cadpro13%

Protein drink customer buy

Good margin 40%

demand36%

product quality24%

Factor of purchasing protein drink

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T.V adds76%

Health magzine24%

To Generate demand

No100%

Heard about frissia

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Direct from

compaany24%

c&f52%

Wholeseller24%

Purchase protein drink from

Yes100%

Customer ask for protein drink

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FINDINGS

Project on Hector Beverages pvt ltd. Was a learning experience. And make me close to the

different Protein drink of different company in the market. After the study of protein drink

market I got to know about:-

Competitors of frissia with different protein drink

Distribution channel of protein drink product

Endorsement is needed for any protein drink which is going to enter in the protein drink

market

Get the experience about the corporate world, how to tackle with the customer while

there FAQ’s

Mostly people take protein drink after the prescription of doctor, they don’t take it by

themselves

Gym going people like to take protein drink, while other hardly take it

While doing market research I also find that customer wants protein drink at cheaper

price .ex:- Frissia’s 150gm pack is of Rs 150, while protein X 200gm pack is of Rs

162.Mostly people want “value for money”

At the time of market research, most of the customer buy protein drink only for taste not

for the health

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CONCLUSION

After the Direct sale and Market research we conclude that people don’t prefer “frissia” because

the company don’t advertise it’s product and in this competitive market every product need

endorsement through celebrity. And the other protein drink company promote the product

through advertisement. Some times price factor also affect the sale of the product because frissia

has higher price than other competitor.

As I had done direct selling also, I found that Frissia product unable to find proper distribution

channel, they don’t have distribution channel except gym.

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RECOMMENDATIONS

1) The company should focus on creating awareness of Protein drink among consumers.

2) The company should decrease the price of the Protein drink products.

3) The company should add intermediaries in between who may make there products available at shops and other places.

4) The company should participate in various health fairs and put canopies in malls, Shopping areas and residential areas to create awareness among consumers.

6) The company should give newspaper advertisement and online advertisement.

7) The product contains high amount of sugar which is quite unacceptable for the Health

conscious target audience, According to the Doctors and other Health care stake holders

the company should reduce the amount of sugar in the product.

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REFERENCES

(BOOKS)

Philip Kotler, “Marketing Management” , 14th e.

Naresh K, Malhotra, “Marketing Research” , 5th e

(WEBSITES)

www.hectorbeverages.com

www.google.com

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