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SNACKS MARKET ANALYSIS IN MEERUT, A STUDY BEFORE PRODUCT LAUNCHSUMMER INTERNSHIP PROJECT REPORT

By AMIT KUMAR Work Carried for CavinKare Pvt. Ltd. Under the Supervision of:Industry Mentor, Mr. Rudra Pratap Chandra, Regional Branch Officer of CavinKare. College Mentor Ms. Neha Sharma, Faculty of Master School of Management, Meerut.

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ACKNOWLEDGEMENTI owe my sincere gratitude to the Branch Officer of CAVIN KARE PVT. LTD. -NEW DELHI & MASTER SCHOOL OF MANAGEMENT, MEERUT, U.P for providing me an opportunity to do my project study. The project report entitled Consumer Buying Behaviours & Role of Retailer for Consumer Buying Decision of Snacks. It is an outcome of constant encouragement & inevitable guidance of my project guide Mr. Rudra Pratap Chandra Regional Branch Officer of CavinKare . He made me realize complexities of the subject, practical & theoretical aspects. Hence I pay my sincere gratitude to him, who inspired me to undertake this work & guided me continuously. Without his valuable guidance, this couldnt have been completed. Especial thanks to my respected faculty guide Prof. R.P. Juyal, Prof. Satendra Soam, Prof. Manoj Sahay, I.T. Specialist Prof. Somen Saha, my Senior Mr. Deepak Kr. Singh for giving an affectionate cooperation & enormous support words are in adequate to express my gratitude to them. I would also like to express my deep sense to gratitude to all the shopkeepers, retailers, distributers, tea stalls and battle shops that helped me to collect the data to make this project valuable. Finally I am so kind of my Parents & Sir who showed immense faith in me and gave me an opportunity to explore my talents and contribute my knowledge in the industrial arena. And I would like to thanks all my friends who were always ready to help.

AMIT KUMAR. MASTER SCHOOL OF MANAGEMENT. MEERUT.

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PREFACEPost Graduate Diploma in Management (P.G.D.M.), one of the most reputed professional courses includes both theory & practical as a part of two years curriculum. In this course each student has to under go practical summer training in an organization of repute. Summer training is an exercise by means of which student learn many things which cannot be taught in the classroom. During summer training students understand the real modus operandi of the concerned areas of interest in the real life situation. The summer training process is an endeavour to converts all thats virtual into a real image i.e. it helps in applying all the theoretical concepts in to the real corporate world. It helps in developing the managerial skills using which we can convert into language & convey the taught & ideas from our mind to others aspect of management education, which is receiving attention the evaluation of the practical training, is to bring actual environment in touch of Business Management. It is rigidly accepted that the theory widens ones thinking viz., concepts of marketing philosophies, but practice indicates the modern Marketing and used in wide variety of setting of products. This project work has been done under the supervision of CAVIN KARE Pvt. Ltd, where 100 retail shops were visited to find out the contribution of chips, kurkure, mixtures and other snacks Meerut. This project has been done under the guidance of the Regional Branch Officer of CAVIN KARE Pvt. Ltd. -NEW DELHI

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EXECUTIVE SUMMARYDISSERTATION TITLE: SNACKS MARKET ANALYSIS IN MEERUT &STUDY OF CONSUMER BEHAVIOUR. COMPANY: CAVIN KARE PVT. LTD. NEW DELHI MENTOR: MR. RUDRA PRASAD CHANDRA NAME OF THE STUDENT: AMIT KUMAR RESEARCH AREA: MEERUT.

This project delivers an insight about the market of snacks products of Meerut. It also brings out the acceptance level for the product by corporate & strategies to establish & increase market share with respect to HALDIRAM PRODUCTS, FRITO LAYS, PARLE AGRO and OTHERS. Snacks products are Haldiram Bhujia, Khatta Mitha, Navratna Mixture, Kaju mix, Kashmiri mixture, Panchratna, Nimboo Masala, Chana Jor Garam, Moong Dal, Moong Dal Masala, boondi, Peanut Salted, Nutcracker, Hing Jeera Mix, Chips, Takatak, Frito-Lays Magic Masala, Lays Classic Salted, Lays Tomato Tango, Lays Onion Flavour, Uncle chips Spicy Treat, Uncle chips Plain Salted, Cheetos, Cheetos Ball, Kurkure Masala Munch, Kurkure Bangali Tadka, Kurkure Chilly Chatka, ITC Bingo, Mad Angles, Parle Agro Hippo, Musst Stix, Crax and Local Products. The need for conducting research is to explore a huge market to establish new snacks of CAVIN KARE. This research conducted to analyze the target market and gets the information about the competitors. The thesis also contain the detailed methodology, which are the survey results, personal interviews based on one to one discussion, observation, analysis & their interpretation, which brings out the acceptance level of corporate.

Signature of student. Amit Kumar.

Signature of the Mentor MR. RUDRA PRASAD CHANDRA. Branch officer.4

CavinKare pvt. Ltd. New Delhi.

Table of ContentsSL. NO. 1 2 3 4 5 6 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NAME OF CHAPTERS Acknowledgement Preface Executive Summary Table of Content List of Tables List of Charts Introduction Indian Snacks Industry Overview Company Profile Review of Literature Objective Major players in Snacks Research Methodology SWOT Analysis, Observation Data analysis & Findings Conclusion Limitation Recommendation Bibliography Appendices:- Data Collected by: Retailers Questionnaire Distributors Questionnaire PAGE NO. 2 3 4 5 6 7 8-9 10 11-12 13 14-16 17 18-21 21-22 23-45 46 47 48 49 50-52 53-59 60-63

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LIST OF TABLESSL. NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NAME OF CHARTS PAGE NO. Market Share Of Snacks In Meerut In Terms Of 23

Money Analysis Of All Snacks Of Rs. 5 Analysis Of All Snacks Of Rs. 10 Analysis Of All Snacks Of Rs. 30 To 40 Analysis Of Haldirams Rs. 5 Products. Analysis Of Haldirams Rs. 10 Products Analysis Of Haldirams Rs. 30-40 Products Analysis Of Haldirams Rs.70-85 Products Analysis Of Haldirams Rs.165-85 Products Analysis of Rs.5 of Frito-Lays products and its share Analysis of Rs.10 of Frito-Lays products and its share Analysis of Rs.20 of Frito-Lays products and its share Placing New order Visibility of Product Retailers Preference to Sale Packaging Importance Role Comparison between Branded and Local Products Individuals Preference for Size Group of Friends Preference for Size Familys Preference for Size Preference for Size Reasons for keeping Local Products in Shop Reasons for keeping Branded Products in Shop Reasons for keeping Both Products in Shop Retailers Choice Among Cash or Credit Purchase

24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 43 44 44 45

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List of ChartsSL. NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 NAME OF CHARTS PAGE NO. 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 45

Market Share Of Snacks In Meerut In Terms Of Money Analysis Of All Snacks Of Rs. 5 Analysis Of All Snacks Of Rs. 10 Analysis Of All Snacks Of Rs. 30 To 40 Analysis Of Haldirams Rs. 5 Products. Analysis Of Haldirams Rs. 10 Products Analysis Of Haldirams Rs. 30-40 Products Analysis Of Haldirams Rs.70-85 Products Analysis Of Haldirams Rs.165-85 Products Analysis of Rs.5 of Frito-Lays products and its share Analysis of Rs.10 of Frito-Lays products and its share Analysis of Rs.20 of Frito-Lays products and its share Placing New order Visibility of Product Retailers Preference to Sale Packaging Importance Role Comparison between Branded and Local Products Individuals Preference for Size Group of Friendss Preference for Size Familys Preference for Size Retailers Choice Among Cash or Credit Purchase

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INTRODUCTIONThe Indian food industry is hailed as the sunshine industry of India. The current market size of Indian food market is around US$ 182 billion, and as per latest reports, the Indian food industry comprises nearly two thirds of the total Indian retail market. According to a study by McKinsey & Co, the Indian food market will grow two fold by 2025 with the rapidly growing Indian economy and improving lifestyles of Indians contributing in a big way to this growth. Quoting the study by McKinsey & Co, a report by the US Department of Agriculture stated "The market size for the food consumption category in India is expected to grow from US$ 155 billion in 2005 to US$ 344 billion in 2025 at a compound annual growth rate of 4.1 per cent." Indian snack food industry comprises of many Indian as well as MNCs. Snacks market consists of nuts & seeds, popcorn, potato chips, biscuits, namkeen, etc. The Indian snack market reached a value of $307.7 million in 2001. The Indian snacks food market is of the order of 400,000 tones. This wide range of products is categorized under Potato /Banana Chips, Namkeens & Fun-Foods. The organized market for chips is estimated to be 6500 tons valued at Rs.2 bn. The market for branded chips has been growing at a fast pace of around 20-25 % annually. There are approximately 1,000 types of snacks and another 300 types of savouries being sold in the Indian market today. The Indian snacks market is worth around US$ 3 billion, with the organised segment taking half the market share, and has an annual growth rate of 15-20 per cent. The unorganised snacks market is worth US$ 1.56 billion, with a growth rate of 7-8 per cent per year. Snack food generally does not form a part of the main meal but are items eaten in between meals for pleasure and during relaxation. Snack food is highly subjected to impulse buying as well as variety seeking and has gained popularity. There are a several brands of snacks such as Lays, Kurkure, and Bingo, Haldiram, Parle all they are Major players of Snacks. Local Players are such as Sudh namkeens, Gupta Jee Snacks, I.J. Products, Jabsons, Satmola, Aadarsh, Babaji, Naman etc have greater influence in Meerut. CavinKare snacks i.e. Garden namkeens are a complete delight to the taste buds and can create the desire for more and more. These snacks will not only satisfy your tummy but will also sustain a feel in your mouth to associate you8

with the bond of Natural Taste. CavinKare company have been launched a newly snacks Garden Nankeens MIX FARSAN, DIET BHEL, MOONG DAL & LEMON BHEL. This project is based on new snacks of CavinKare, where researcher needs to find out the contribution of chips & sticks across Meerut, U.P., Delhi. The objective of this project is to find out the total contribution of snacks chips & other namkeens, understand the tastes & preferences of the consumers, analyze the strategies and performance of major competitor brands in snacks market. And suggest opportunities for new products.

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Indian Snacks industries overviewThe Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized 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 snack food market in India is valued at Rs. 1530 crore and is one of the largest markets in the world, out of which potato chips holds the major market share of around 85%. Products covered potato chips, savoury snacks, snacks nuts, and popcorn. Snack foods are highly subjected to impulse buying and have gained popularity, today, due to: Growing urban population. Increase in number of nuclear families. Increase in the number of working women. Media penetration leading to attraction for novel food, and Higher disposable income. Snacks are a part of consumer convenience / packaged foods segment. Snacks are described as a small quantity of food eaten between meals or in a place of a meal. Snacks food generally comprises bakery products, ready to eat mixes, chips, namkeen other light processed foods according to the ministry of food processing the, snack food industry worth is 102 billion in value in over 4,00,000 tones in terms of volume. The snacks industry is dominated by unorganized sector. According to APEDA SURVEY almost 1,000 snacks items & 300 types of savouries are sold across India. The branded snacks are sold at least 25% higher than the unbranded products. The industry has been growing around 10% for the last three years, while the branded segment is growing around 25% per annum to stand at 5000-Rs 5,500 crore, due to various reasons like multiplex culture, snacking at home while watching T.V., pubs & bars. AC Nilsens Retail Audit shows that the sales volumes are due to a marked preference for ethnic foods, regional bias towards indigenous snacks and good value for money perception. Of course branded segment is much smaller at 2,200 crore, which is what makes it so attractive to food companies that are looking at bigger shares. The potato chip market is generally unorganized industry. Nearly all potato chips snacks product are manufactured and sold locally. There is also no10

uniform standard for packaging, as there is in Europe the United States and other more developed region. PepsiCo Food Ltd. now has known as Frito-lay

India ltd. Produces Indias largest snack food manufacturer brands including Ruffles, Hostess, Cheetos & Uncle chips. Major Players in Snacks PepsiCo (Lays & Kurkure) Lay's is the brand name for a number of potato chip (crisps in British English) varieties as well as the name of the company that founded the chip brand in 1938. Lay's chips are marketed as a division of Frito-Lay, a company owned by PepsiCo Inc. since 1965. Other brands in the Frito-Lay group include Fritos, Doritos, Ruffles, Cheetos and Rold Gold pretzels. Kurkure launched in 1999, soon became the perfect Namkeen snack of the nation. Embodying the spirit of our lovable country, this tedha shaped snack has found a home in the hearts and minds of all. Lays Flavours & Kurkure Flavours Magic Masala & Masala Munch Spanish tomato tango & Naughty tomatoes Spicy treat Chilli Chatka Classic Salted Green chutney Rajasthani Style cream onion flavor & Hydrabadi Hangama Non veg. Brands & Desi beats Haldiram Haldiram began as a tiny shop in Bikaner in 1937, the land as famed for its savouries as for its leather- faced pipe player fierce warriors. By 1982, Haldirams had set up shop in Delhi. USA was the first market where they started export in 1993. Haldiram's key world to attract the customers are Packaging, Point of purchase (POP), Shelf life, Namkeens, Product promotion, Niche market, Pricing strategy, Gift packs and Indiatimes.com. Parle Parle snacks are a complete delight to the taste buds and can create the desire for more and more. These snacks will not only satisfy your tummy but will also sustain a feel in your mouth to associate you with the bond of Parle. Parle company have been launched a newly snacks Musst chips & Musst stix. Musst chips Musst stix Aloo Chat Masala Munch, Sweet & spicy chutney Japanese Zatka, Classic Salted Saambar, Red chilly achar Sweet Chilly, and Chatpata Chat. ITC (Bingo)11

(14 march 1999):- ITC Limited - Foods Division announced the launch of its new snacks brand Bingo, which marks the company's foray into the fast growing branded snacks segment. The launch of Bingo represents ITC Foods' fifth major line of foods business after the highly successful Staples, Biscuits, Ready-to-Eat and Confectionery businesses. The organized snacks category is sub-divided into the traditional segment (Bhujia, chanachur etc.), Western segment (potato chips, cheese balls etc.) and the newly established Finger snacks segment, which is an adaptation of traditional offerings to the western format. Made Angles Flavors Chips Flavors Finger Snacks Flavors Tomato mischief Tomato Funky Masala Chilli Dhmaka Chatkila nimbu achar Tomato twist Achari Masti Other Brands Sudh Namkeens, I.J.Products, Naman Namkeens, Gupta ji Namkeens, Aadaesh Namkeens, Local Manufacturers etc. are several brands of snacks which are also competing with international brands. These brands are mainly affecting the sales of main brands such as Lays, Kurkure, and Bingo etc. These brands are giving more quantity as well as quality with more or less same price including retailers extra benefits in term of profits and credits as well.

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About The CompanyCavinKareCavinKare is a leading FMCG Indiana player. It started in 1983 as a small partnership firm named as Chik India pvt. Ltd with only 15000 Rs. which was later named as CavinKare Pvt. Ltd. in 1998. With innovative entrepreneur C.K. Rangnathan at the helm, CavinKare emerged as a successful business enterprise. Smart marketing & clear product positioning not only ensured CavinKare growth but also helped the company broaden its product portfolio extensively. The company now markets 10 major brands. The company offers quality personal care (Hair care, Skin care, Home care and Ethinic care), Skin Care (Fairever, Fairever Fruit, Spinz Talc, Spinz Deodorants, Hi5 Deo, Nyle Cold cream and Lotion), Hair care (Chik Shampoo, Chik Satin Shampoo, Nyle Herba Shampoo, Meera Badam Shampoo, Indica Hair Colorant, Indica 10 Minutes), Ethnic Care (Meera Hair Wash Powder, Karthika Hair Wash Powder, Meera Aritha Ras), Home Care (Tex, ToppMopp), Food Division (Ruchi Pickles, Chinnis Pickles, Chinnis Vermicelli, Ruchi Gulab Jamun Mix, Meera Coconut oil), Dairy Products (Standardised Milk Toned, Milk Full Cream, milk Double Toned Milk, Cavins Curd), Maa Fruit Juice beverages (Mango, Apple, Guava, Pineapple), Cavins Flavoured Milk Beverages (Kesar, Badam, Pista, Strawberry, CoffeToffe) and food products borne out of a keen understanding of consumer needs and keeping up company's the values of innovation & customer satisfaction. Today CavinKare having established a strong foothold in national market is increasing its popularity in international arena. A dedicated research & development centre equipped with latest equipment & technology constantly supports the endeavour. The company which initially relied on contract manufacturing has set up world class plant at Hridwar to cater the national & international demand. CavinKare has crossed a turnover of 10165 INR in the financial year 2010-11. The company has employee strength of 1780 & 1300 stockists catering to about 25 lakhs outlets nationally.

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Review of LiteratureThe savoury snacks market consists of nuts & seeds, popcorn, potato chips, processed snacks and other savoury snacks. The market is valued according to retail selling price (RSP) and includes any applicable taxes. (Savoury snacks in India data monitor market (2008)) India's snacks market is estimated to be worth $3 billion, with the organised segment accounting for half the market share and growing at a rate of 15-20% a year. The unorganised snack food market is worth $1.56 billion and is growing at 7-8%, the report said. "Consumers are willing to pay a premium for both value-added private and branded products, creating immense opportunities for manufacturers and retailers, it said, adding "there is a widespread recognition in India that consumers are likely to replace light meals with snacks. PTI (Time Of India(2008)) According to a study by McKinsey &Co, the Indian food market will grow two fold by 2025 with the rapidly growing Indian economy and improving lifestyles of Indians contributing in a big way to this growth. Quoting the study by McKinsey &Co, a report by the US Department of Agriculture stated "The market size for the food consumption category in India is expected to grow from US$ 155 billion in 2005 to US$ 344 billion in 2025 at a compound annual growth rate of 4.1 per cent." The Indian snacks market is worth around US$ 3 billion, with the organised segment taking half the market share, and has an annual growth rate of 15-20 per cent. The unorganised snacks market is worth US$ 1.56 billion, with a growth rate of 7-8 per cent per year. There are approximately 1,000 types of snacks and another 300 types of savouries being sold in the Indian market today. Potato chips and potato-based items are the most popular products with more than 85 per cent share of the salty snack market, the report said. In the organised potato chips market, Pepsi and Haldiram's are some of the leading players. According to a case on Snacks Namkeen, the Indian snack food industry comprises of many Indian as well as MNCs. The Indian snack market reached a value of $307.7 million in 2001. The Indian snacks food market is of the order of 400,000 tones. These wide ranges of products are categorized under Potato / Banana Chips, Namkeens & Fun-Foods. The organized market for chips is estimated to be 6500 tons valued at Rs.2 bn.14

The market for branded chips has been growing at a fast pace of around 20-25 % annually. Since the majority of MNCs entered their venture in Ready-ToEat Snacks & Namkeens. The Research was a good experience & the final conclusion is that the consumers generally associate Ready-To-Eat Snacks & Namkeens with Time Pass. Majority of them prefers wafers to be their first choice with Haldiram being the second preference. Namkeens on other hand are usually preferred as hunger quencher and are eaten whenever the consumers are hungry. ReadyTo-Eat Snacks & Namkeens are generally considered as take away food and hence the consumers generally buy 1-2 packs and do not store them. Through the research it was concluded that the consumers want even POPCORN to be included in this category which is also an opportunity for the manufacturers to launch a new product and extend their product width. The Kolkata-based multi-business conglomerate, has decided to take on rival PepsiCo in the ready-to-eat snacks market with its extra offerings on the smaller price packs. The 33 per cent extra scheme by Frito-Lays on Lays and Kurkure got a good trader and consumer response. In the next four-six weeks, a similar scheme will be offered by ITC,(Sapna Agarwal). The last two years have seen some aggressive advertising in the chips and snacks segment. Bingo range has a number of different advertisements, with all of them having a common theme of humour, an industry expert said. While Lays and Kurkure advertisements used endorsements from cricketers, movie actors, etc. Bingo has stayed away from celebrity endorsements but has still managed to create a strong impact. According to India a big trade mart for the food industry, the Indian food industry is hailed as the sunshine industry of India. The current market size of Indian food market is around US$ 182 billion, and as per latest reports, the Indian food industry comprises nearly two thirds of the total Indian retail market. The growing young, working population with more disposable income than time on their hands is fuelling the demand for ready-to-eat food and convenience products. There are currently over 1,000 snack food products available in India, and potato-based snacks, particularly potato chips, occupy more than 80% of the salty snack market. But, the consumption of diet snacks is on the rise and organised retail chains are seeing a huge demand for diet snacks (bread sticks, soy nuts, popcorn and baked & roasted snacks.)15

Similarly, although the soft drink market is currently dominated by carbonated drinks, growing health concerns are set to bring about big changes in consumption patterns, shifting interest to healthier options like juices, bottled water, and energy drinks.

(S.Annadana(2008)) A report by RB press release, Urban Indians has a new lifestyle and an insatiable appetite for ready-to-eat food and carbonated drinks. But a shift to healthier options is on the cards, says new research. A growing young, working population with more disposable income than time on their hands is fuelling the demand for ready-to-eat food and convenience products, particularly snacks and carbonated drinks. According to International ICON group, In order to estimate the latent demand for instant hot snacks across the states or union territories and cites of India, we used a multistage approach. Before applying the approach, one needs a basic theory from which such estimates are created. In this case, we heavily rely on the use of certain basic economic assumptions. In particular, there is an assumption governing the shape and type of aggregate latent demand functions. Latent demand functions relate the income of a state or union territory, city, household, or individual to realized consumption. Latent demand (often realized as consumption when an industry is efficient), at any level of the value chain, takes place if an equilibrium is realized. For firms to serve a market, they must perceive a latent demand and be able to serve that demand at a minimal return. The single most important variable determining consumption, assuming latent demand exists, is income (or other financial resources at higher levels of the value chain). Other factors that can pivot or shape demand curves include external or exogenous shocks (i.e., business cycles), and or changes in utility for the product in question.

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Objective To find out the total contribution of snacks - chips & namkeens To understand the tastes & preferences of the consumers. To analyze the strategies and performance of major competitor brands in snacks market. To suggest opportunities for new products.

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Research MethodologyResearch methodology is the way to systematically solve the research problem. It may be understood as the science of study how research is done systematically. It includes the various steps that are generally adopted by the research methods or techniques & the methodology. The project was embedded with several intricacies. As such, I made it a four-fold approach to be undertaken with personal discussion. Step 1 The first one weeks involved field visits. It consisted of mainly practical observations. The practical learning came from visiting the retailers, battle shops as well as the tea stall. I visited to around 15-20 shop keepers including retailers, battle shops and tea stalls. I covered some parts of Meerut to have an understanding the consumer buying behaviour. These visits helped me to have an understanding of the brand value of the company as well as the sales channel. It also helped me to design the further study. Step 2 After the first week of observing the consumer behaviour & the companies image the next two weeks included the preparation of questionnaires & their pretesting. I prepared two questionnaires one directed to the retailers and the other to the distributors. I took a sample size of 20 for retailers questionnaire. The pretesting of the questionnaires made me find out the mistakes in them. It took two weeks in these activities. Step 3 The third step involved amendments in the questionnaires & collection of data from the respondents. 100 retailers from the different parts of Meerut were approached along with direct interactions with consumers regarding the beliefs about different brands. This whole process took a long time of three weeks. Step 4 The fourth and final part of the study included the analysis of the collected data and giving shape to the project report. To analyze the data I used Excel as well as SPSS software and for interpretation I talked with Dr. R.P. Juyal, Dr. Satendra Soam, Prof. Kannagi Sharma, Prof. Neha Sharma.

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Research Problem: While determining the research problem this passes through several steps, which are as follow: Identify and clarify managements information needs: - Since the study is aimed to find out the target place for new product of CAVIN KARES Garden Namkeens. It also purposes to consider the environmental factor such as seasonal impact on the sales of Snacks. Specify the Research questions: What is snacks market? What do the consumers prefer in snacks the most? What are the strategies followed by the major competitor brands in snacks market? What marketing strategy should be followed by company to capture the market? What are the opportunities for a company to introduce a new product in snacks market? Research Design: -This study uses both Exploratory Research Design and Descriptive Research Design. Exploratory Research Design is used to collect and analyze the data, to explore a problem (need & wants of consumers & test & preferences of the consumers) to get some basic ideas on chips & sticks through the interviews & review the literature.

Descriptive Research Design is used to describe the tastes and preference and draw some conclusion about the problem through questionnaire and personal interviews. Sources of the Data: - The sources of data structures and information needed to solve information research problems can be classified as Secondary Data Primary Data Secondary data: - It consists of information that already exists somewhere, which is also collected for another purpose also. The information is obtained for CavinKare Company and its competitors like Frito-Lays, Haldiram, Bingo. This data provides following information: Parle Company and its products. Competitors strategy & policy. Market share of the competitors Various Varity of the snacks. Product quality & features of the competitors brands.19

Primary Data: - Primary data consist of information collected for the specific purpose at hand. While designing a plan for primary data collection calls for a number of decisions on Research Approaches, Contact Methods, Sampling Plan, and Research Instruments. Research Approaches: Observation Surveys Observation: - Its systematically planned and recorded and is subjected to: Checks and controls on validity and reliability. It is suitable approach where people are unwilling or unable to provide information. Survey: - It is the most widely used method for primary data collection, best suited for gathering descriptive information. A company that wants to know about peoples knowledge, attitude, preferences, or buying behaviour can often find out by asking them directly. Survey has been done in Meerut through Questionnaire to find out the contribution of chips & namkeens. Sampling Plan: - Marketing researchers usually draw conclusions about large groups of consumers by studying a small sample of the total consumer population. Designing the sample requires three decisions:Sampling unit: - In this who is to be surveyed. Target retail shops to get the information across Meerut. Sample size: - It means how many people should be surveyed. Researcher has surveyed Retail shops in various places of Meerut. 100 shops have been visited so sample size is 100. Contact Methods: - It helps to collect primary data through mail, telephone, personal interview, or online. This research uses personal interview and information such as customer test & preferences, issues, need & want of the customer through questionnaire. Research Instrument: - In this research I have used only questionnaire method as well as personal interview. Questionnaire: - I have applied open-end questions and close-end questions. Open-end questions allow respondents to answer in their own words. Close end include all the possible answers, and subject make choices among them.

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Personal Interview:- I talked with respondents and distributors and made note of that, like which type of snacks are liked by people and why and what according to him should be the strategy to launch the product in Meerut. Data Analysis & Findings Data which is converted into useful information by analysis called data analysis. SWOT analysis of Snacks industry:Strength: Abundant availability of raw material. Vast network of manufacturing facilities all over the country. Vast domestic market. Good consumption. Urbanizations Affordable prices. Weakness: Low availability of adequate infrastructural facilities. Lack of adequate quality control & testing methods as per international standards. Problem in identify test & and preference of the consumer. Inefficient supply chain due to a large number of intermediaries. High requirement of working capital. Problem segment the market on the bases of age group. Opportunities: Rising income levels & changing consumption patterns. Changing lifestyles. Opening of Global markets. Opportunity in rural market. Threats: High inventory carrying cost. High packaging cost. High taxation. Competition between National & Regional players.

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ObservationIt was observed that Different Packs were available in the market Like Rs. 5,10,15,20,30,33 etc, and it was seen that different consumers were there for different packs of snacks which seen in the market. It was seen that with the snacks distribution concern, the Snacks that were in racks, so that the consumers can see their flavours and purchase according to their desire. It was observed during the research that the retailers were little bashful while providing the data and they were little concerned with the information that why all these things need to be taken. It was observed during the research that snacks were also sold on the Petrol Pump, Liquor shops, and hotels, the sales were fine in accordance with the Visitors who were coming there.

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DATA ANALYSIS AND FINDINGSNote:- All the data here are Calculated and Analysed are of 7 to 10 days sale. As per S.K.U. i.e. Stock Keeping Unit.MARKET SHARE OF SNACKS IN MEERUT IN TERMS OF MONEY

Chart 1

Frito Lays 37%

Haldiram 32%

Haldiram Other brands Other Local Frito Lays

Other Local 22%

Other brands 9%

Table 1 Brands Haldiram Other brands Other Local Frito-Lays Sum Amount in Rs. 195003 53285 134150 217760 600198 Percentage 32 9 22 37 100

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Interpretation:- From the above Pie Chart it has been clearly shown that Frito-Lays is the market leader with 37% of market share followed by Haldiram with 32%, Other Local like Jabson, Satmola, Sudh Namkeens, Gupta ji, Local manufactures etc with 22% and Other branded like Parle Agros Hippo, Musst Chips, Musst Stix etc, ITCs Mad Angles, Bingo etc and others with 9%.ANALYSIS OF ALL SNACKS OF Rs.ANALYSIS OF RS.5 PRODUCTS

12176

9974

HALDIRAM RS.5 OTHERS BRANDED OTHERS LOCAL FRITOLAYS Linear (HALDIRAM RS.5)

2594

616

1

Chart 2.

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NO. OF UNITS

Table 2 of Rs. 5 snacks in Meerut.Brands No. of Units Haldiram 12176 Other brands 2594 Other Local 616 Frito-Lays 9974 Sum 25360 100.0 39.4 2.4 10.2 48.0 Percentage

Interpretation:- Bar Graph 2 shows that the sale of Rs. 5 snacks in Meerut is highest of Haldiram with 48% which is 8.6% higher than Frito-Lay. Other Branded products like ITC, Parle having only 10.2% and Other local Products having just 2.4% of Market Share. Frito-lays is the market leader but in spite of it in 5 Rs. segment Haldiram is market leader. Haldirams Snacks are taken by all age group but most of the Frito-Lays products are taken by children. Other local products having very little significance.

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ANALYSIS OF ALL SNACKS OF Rs. 10 Chart3.8000 7000

ANALYSIS OF RS.10 GOODS

6000

5000 NO. OF UNITS FRITO LAYS,1, 6743

4000

3000

2000 OTHERS BRANDED, 811

HALDIRAM, 6533

HALDIRAM OTHERS LOCAL FRITOLAYS OTHERS BRANDED

1000

OTHERS LOCAL, 872

0 1

Table 3Analysis of Rs 10 Products. Brands Haldiram Other branded Other Local Frito-Lays Sum No. of Units 6533 811 872 6743 14959 Percentage 43.7 5.4 5.8 45.1 100

Interpretation: The analysis of Rs. 10 product shows that Frito-Lay isable to grasp highest market share of 45.1% followed by Haldiram with 43.7%. Other branded and Local products having market share of 5.4 and 5.8% respectively which have little significance in Meerut Town.

26

ANALYSIS OF ALL SNACKS OF Rs. 30 TO 40 Chart 4.1800 1588

ANALYSIS OF RS.30 TO RS.40 PRODUCTS

1600

1400

1200 NO. OF UNITS

1132

1000

HALDIRAM OTHERS BRANDED OTHERS LOCAL FRITOLAYS600 474

800

600

400

200

0

Table 4Analysis of Rs 30 to 45 Products. Brands Haldiram Other branded Other Local Frito-Lays Sum No. of Units 1588 474 600 1132 3794 Percentage 41.9 12.5 15.8 29.8 100

Interpretation:- The above Bar Graph can be easily analysed that, in Rs. 30 to 45 or in 200Gm. segment Haldiram is the market leader with 41% market Share and Frito-lays product of Rs.20 and 30 having market share of 29% followed by Other Local with 15.8% and Other Branded with 12.5% of market share.

27

ANALYSIS OF HALDIRAMS Rs. 5 PRODUCTS.H LD A R .5 P O U T A DS A E A IR M S R D C N H R16 PERCENTAGE OF PRODUCT IN MEERUT

14

A B U LU H JIA12

B U H JIA K A H TTAM A ITH N V A A A R TN N B OMA A IM O S LABhujia, 14.3

10 1

C A AJO G R M H N R A AMoong Dal Masala, 9.1 Nut Cracker, 12

8

M O GD L O N A M O G A M S LA O N D L A A C A AD L H N A B O D O N I S LTE P A U A D E N T N TC A K S U R C ERTaka Tak, 2.7 Chips, 3.8

6

Nimboo Masala, 4.1

Chana jor Garam, 6.1

Khata Mitha, 7.6

4

Chana Dal, 5.5

Salted Peanut, 8.2

Alu Bhujia, 7.7

Moong Dal, 8.3

Navratna, 8.2

C IP H S TA A K K TA

2

Boondi, 2.4

0

CHART. 5

Table: 5Analysis of Rs.5 of Haldiram products and its share Brands No. of Units Alu Bhujia 940 Bhujia Khata Mitha Navratna Nimboo Masala Chana Jor Garam Moong Dal Moong Dal Masala Chana Dal Boondi Salted Peanut Nut Cracker Chips Takatak Sum 1742 925 1004 500 746 1010 1110 666 290 995 1459 458 331 12176 Percentage 7.7 14.3 7.6 8.2 4.1 6.1 8.3 9.1 5.5 2.4 8.2 12 3.8 2.7 100

Interpretation:- The above Bar Graph shows the Haldirams Rs. 5 product portfolio. Its Bhujia having highest significance with market share of 14.3% and its Boondi having lowest significance with just 2.4%. Consumers used to have Nut Crackers, Navratna, Moong dal masala, Moong dal, Salted Peanut, Navratna, Khatta Mitha, Chana Jor Garam, Chana dal, Nimboo masala, Chips,than Takatak.

28

ANALYSIS OF HALDIRAMS Rs. 10 PRODUCTS. H LD M RS. 10 P D CTS A IRA RO U Chart 6PERCENTAGE OF HALDIRAM RS.10 IN MEERUT 12

10

9.6 8.9 7.9 7.1 5.9 6.9 7.1 5.9 4.8 4.2 4.2 3 2.3 1.8 7.7 7.2

ALU BHU JIA BHU JIA KHAT M HA TA IT N AVRAT A N KAJU M IX KASM I M U IR IXT RE PAN R N CH AT A N BO M IM O ASALA C HANA JO G R ARAM M O G DAL O N M O G DAL M O N ASAL C HANA D AL BO ND O I SALTED PEANU T N CRACKER UT C HIPS TAKAT AK

8

6

5.6

4

2

0 1

Table 6 Analysis of Rs.10 of Haldiram products and its share Brands No. of Units Percentage Alu Bhujia 384 5.9 Bhujia 629 9.6 Khata Mitha 464 7.1 Navratna 448 6.9 Kaju Mix 517 7.9 Kasmiri Mix 466 7.1 Panchratna 501 7.7 Nimboo Masala 277 4.2 Chana Jor Garam 272 4.2 Moong Dal 364 5.6 Moong Dal Masala 387 5.9 chana Dal 311 4.8 Boondi 149 2.3 Salted Peanut 469 7.2 Nut Cracker 579 8.9 Chips 197 3 Takatak 119 1.8 Sum 6533 100 Interpretation:- Haldirams Bhujia in Rs. 10 segment sold in largest number. In 10 Rs. segment after Bhujia, Nut Cracker is in demand also with salted Peanut, Kaju mix, Panchratna, Kashmiri mix etc.

29

ANALYSIS OF HALDIRAMS Rs. 30-40 PRODUCTS. HALDIRAM 200g PRODUCT Chart 7.16 14.5 14 PERCENTAGE OF HALDIRAM 200g IN MEERUT

12 10.1 10

11.5 10 8.6 7.6

8.1 8 7.2 7.4 5.9

6

5.9

4

ALU BHUJIA BHUJIA KHATTA MITHA NAVRATNA NIMBOO MASALA CHANA JOR GARAM MASALA MOONG DAL MASALA KAJU MIX CHANA DAL BOONDI SALTED PEANUT NUT CRACKER

3.3

2

0 1

Table: 7 Analysis of Rs.30 to 40 of Haldiram products and its share Brands No. of Units Percentage Alu Bhujia 115 7.2 Bhujia 230 14.5 Khata Mitha 160 10.1 Navratna 182 11.5 Nimboo Masala 117 7.4 Chana Jor Garam 93 5.9 Moong Dal 129 8.1 Kaju Mix 136 8.6 chana Dal 94 5.9 Boondi 53 3.3 Salted Peanut 120 7.6 Nut Cracker 159 10 Sum 1588 100 Interpretation:- In Rs. 30 to 40 or 200Gm segment Haldirams Bhujia sold in largest number. Haldirams products of Rs. 5,10,12,33,35 and 38 is kept in almost every retailers. Up to this segment Haldirams Product plays an important role and these are in demand in the Snacks market.

30

ANALYSIS OF Haldirams Rs.70-85 PRODUCTS. HALDIRAM 500g PRODUCTS Chart 8.14 13.1 11.7 10.3 10 9.2 8 6.7 6 5.3 4.1 4 10.6 ALU BHUJIA BHUJIA KHATTA MITHA NAVRATNA NIMBOO MASALA CHANA JOR GARAM MOONG DAL MASALA KAJU MIX CHANA DAL BOONDI SALTED PEANUT NUT CRACKER 13.1

12 PERCENTAGE OF HALDIRAM 500g IN MEERUT

8 6.4

2

1.4

0 1

Table: 8 Analysis of Rs.70 to 85 of Haldiram products and its share Brands No. of Percentage Units Alu Bhujia 6 1.4 Bhujia Khata Mitha Navratna Nimboo Masala Chana Jor Garam Moong Dal Kaju Mix Chana Dal Boondi Salted Peanut Nut Cracker Sum 57 51 57 23 29 40 45 28 18 35 46 435 13.1 11.7 13.1 5.3 6.7 9.2 10.3 6.4 4.1 8 10.6 100

Interpretation:- The above bar graph show that Bhujia sold largest in number among Haldirams Product Portfolio and Boondi and Nimboo Masala are not demanded much in Meerut. Price range of Rs. 70 to 85 are the products of 500Gm in size. This size is not demanded much in Meerut.31

ANALYSIS OF HALDIRAMS Rs.165-185 PRODUCTS. Chart 9 HALDIRAM 1KG PRODUCTS18

16

14 PERCENTAGE OF 1KG IN MEERUT

13.1 11.5 9.8 BHUJIA, 16.4 8.2 8.2 11.5

12

10

8

ALU BHUJIA BHUJIA KHATTA MITHA NAVRATNA MIXTURE NIMBOO MASALA CHANA JOR GARAM MOONG DALA MASALA KAJU MIX CHANA DAL BOONDI SALTED PEANUT NUT CRACKER

6ALU BHUJIA, 9.8

4

3.3

3.3

3.3 1.6

2

0 Alu Bhujia

Table: 9 Analysis of Rs.165 to 185 of Haldiram products and its share Brands No. of Units Percentage Alu Bhujia 18 9.8 Bhujia Khata Mitha Navratna Nimboo Masala Chana Jor Garam Moong Dal Kaju Mix chana Dal Boondi Salted Peanut Nut Cracker 30 21 15 6 6 18 15 6 3 21 24 16.4 11.5 8.2 3.3 3.3 9.8 8.2 3.3 1.6 11.5 13.1

Sum 183 100 Interpretation:- The above bar graph show that Bhujia sold largest, in terms of quantity among Haldirams Product Portfolio and Boondi and Nimboo Masala are not demanded much in Meerut. Price range of Rs. 165 to 185 is the products of 1 Kg in size. This size is not demanded much in Meerut.32

ANALYSIS OF FRITOLAYS Rs.5 PRODUCTS. Chart 10. FRITO LAYS RS.5 PRODUCTS16

14 12.2 12 12.6 11.5 11.7 11 11.7

13.8

PERCENTAGE OF FRITOLAYS IN MEERUT

10

LAYS AMERICAN STYLE CREAM & ONION LAYS SPANISH TOMATO TANGO LAYS MAGIC MASALA LAYS CLASSIC SALTED UNCLE CHIPS SPICY TREAT UNCLE CHIPS PLAIN SALTED CHEETOS CHEETOS BALL KURKURE MASALA MUNCH KURKURE CHILLY CHATKA KURKURE BANGALI TADKA 3.1

8

6

5.8

5.6

4

2

1.1

0 1

Table: 10 Analysis of Rs.5 of Frito-Lays products and its share Brands No.of Units Lays American Style Cream and Onion 1212 Lays Spanish Tomato Tango Lays Magic MasalaKhata Mitha Lays Classic Salted Uncle Chips Spicy Treat Uncle Chips Plain Salted Cheetos Cheetos Ball Kurkure Masala Munch Kurkure Chilly chatka Kurkure Bangali Tadka Sum 1259 1148 1094 1166 1166 580 556 1374 313 106 9974

Percentage 12.2 12.6 11.5 11 11.7 11.7 5.8 5.6 13.8 3.1 1.1 100

Interpretation:- From the above Bar graph it can be observed that KurkureMagic Masala is in demand which have 13.8% market share among Frito-Lay products but its just opposite is that Kurkure Chilly chatka and Kurkure Bangali Tadka is not in demand. Lays and Uncle chips have good significance whose market share is 11.7% for each approximately in its own Product Portfolio.33

Analysis of Rs.10 of Frito-Lays products and its share. FRITO LAYS RS.10 PRODUCTS Chart 1114 13 12.5 PERCENTAGE OF FRITOLAYS PRODUCT IN MEERUT 12 11.9 11.9 10.6 10 12.2 11

LAYS AMERICAN STYLE CREAM & ONION LAYS SPANISH TOMATO TANGO LAYS MAGIC MASALA

8

LAYS CLASSIC SALTED UNCLE CHIPS SPICY TREAT UNCLE CHIPS PLAIN SALTED 6.1 CHEETOS CHEETOS BALL KURKURE MASALA MUNCH 3.7 KURKURE CHILLY CHATKA KURKURE BANGALI TADKA

6 4.8 4

2.2 2

0 1

Table: 11 Analysis of Rs.10 of Frito-Lays products and its share Brands No. of Units Lays American Style Cream and Onion Lays Spanish Tomato Tango Lays Magic MasalaKhata Mitha Lays Classic Salted 803 846 801 712 Percentage 11.9 12.5 11.9 10.6

Uncle Chips Spicy Treat 825 12.2 Uncle Chips Plain Salted 745 11 Cheetos 324 4.8 Cheetos Ball 408 6.1 Kurkure Masala Munch 876 13 Kurkure Chilly chatka 252 3.7 Kurkure Bangali Tadka 151 2.2 Sum 6743 100 Interpretation: From the above Bar graph it can be observed that Kurkure Magic Masala is in demand which have 13% market share among Frito-Lay products but its just opposite is that Kurkure Chilly chatka and Kurkure Bangali Tadka is not in demand. Lays and Uncle chips have high significance whose market share is 11.65% for each approximately in its own Product Portfolio.34

Analysis of Rs.20 of Frito-Lays products and its share. FRITO LAYS RS.20 PRODUCTS Chart 1216 14.2 PERCENTAGE OF FRITOLAYS PRODUCTS IN MEERUT 14 12.8 12 LAYS AMERICAN STYLE CREAM & ONION LAYS SPANISH TOMATO TANGO LAYS MAGIC MASALA LAYS CLASSIC SALTED 8 UNCLE CHIPS SPICY TREAT UNCLE CHIPS PLAIN SALTED KURKURE MASALA MUNCH 5.4 KURKURE CHILLY CHATKA KHRKURE BANGALI TADKA 12.7 12.7 12.9 12.4 14.3

10

6

4 2.5 2

0 1

Table: 12 Analysis of Rs.20 of Frito-Lays products and its share Brands No. of Units Lays American Style Cream and Onion Lays Spanish Tomato Tango Lays Magic MasalaKhata Mitha Lays Classic Salted 529 525 524 512

Percentage 12.8 12.7 12.7 12.4

Uncle Chips Spicy Treat 585 14.2 Uncle Chips Plain Salted 533 12.9 Kurkure Masala Munch 590 14.3 Kurkure Chilly chatka 223 5.4 Kurkure Bangali Tadka 102 2.5 Sum 4123 100 Interpretation: From the above Bar graph it can be observed that KurkureMagic Masala is in demand which have 13.8% market share among Frito-Lay products but its just opposite is that Kurkure Chilly chatka and Kurkure Bangali Tadka is not in demand. Lays and Uncle chips have good significance whose market share is 11.7% for each approximately in its own Product Portfolio.

35

Table: 13

PLACEMENT NEW ORDER.Valid WEEKLY FORTNIGHTLY MONTHLY OTHERS Total Frequency 78 1 2 19 100 Percent 78.0 1.0 2.0 19.0 100.0 Valid Percent 78.0 1.0 2.0 19.0 100.0 Cumulative Percent 78.0 79.0 81.0 100.0

Chart: 13

Undefined error #60703 - Cannot open text file "C:\Program Files\SPSS\en

PLACING NEW ORDER100

80 78 60

40

20

19

0 W EEKLY FO RTNIGHTLY MO NTHLY O THERS

PLACING NEW ORDER

Interpretation:- In the Survey of snacks 78% responded said that they place order weekly and 19% respondent said they place order on different basis like when stock gets nil or they do not place order, the used to go to purchase as sales person do no not come for order or they dispatch the goods late.

36

VISIBILITY OF PRODUCT.Table: 14Frequency Valid SMALL AND MEDIUM SIZE ALL SIZES Total 93 7 100 Percent 93.0 7.0 100.0 Valid Percent 93.0 7.0 100.0 Cumulative Percent 93.0 100.0

Chart: 14

VISIBILITY OF PRODUCTALL SIZES

SMALL AND MEDIUM SIZ

Interpretation:- The respondent 93%of Meerut said that they used todisplay small and medium size on the side stand provided by the company. These small and medium sizes are of Rs. 5,10 and 20. They also hang the products on wires or pipes provided by the company and 7% responded said that they display all the sizes. The fact is all retailers do not keep all the sizes that is why they said small and medium size.37

RETAILERS'SPREFERENCE TO SELL.Table: 15Valid BRANDED LOCAL BOTH Total Frequenc y 68 3 29 100 Percent 68.0 3.0 29.0 100.0 Valid Percent 68.0 3.0 29.0 100.0 Cumulative Percent 68.0 71.0 100.0

Chart: 15

RETAILERS's PREFERENCE TO SELL

BOTH

LOCAL BRANDED

Interpretation:- This Pie chart show that 68% retailers want to sale branded products and 29% of retailers sale both the products but only 3% retailers sale local products only which they manufacture themselves. There is low operating cost and less entry barriers so there are more opportunity for new manufacturers or entrepreneurs.

38

PACKAGING PLAYS IMPORTANT ROLEUndefined error #60703 - Cannot open text file "C:\Program Files\SPSS\en

Table: 16Frequency WINDOW PACKAGING GLOSSY PACKAGING Total 14 86 100 Percent 14.0 86.0 100.0 Valid Percent 14.0 86.0 100.0 Cumulative Percent 14.0 100.0 Valid

Chart: 16

PACKAGING PLAYS IMPORTANT ROLE100

80

60

40

20

0 WINDOW PACKAGING GLOSSY PACKAGING

PACKAGING PLAYS IMPORTANT ROLE

Interpretation:- 86% respondent said that Glossy Packaging in more important in snacks but 14% respondent agree with Window Packaging. The fact is Glossy packaging is more attractive with compared to window packaging.

39

IS BRANDED PRODUCTS ARE BETTER THAN LOCAL PRODUCTSTable: 17Valid YES NO Total Frequenc y 73 27 100 Percent 73.0 27.0 100.0 Valid Percent 73.0 27.0 100.0 Cumulative Percent 73.0 100.0

Chart: 17

IS BRANDED PRODUCTS ARE BETTER THEN LOCAL PRODUCNO

YES

Interpretation:- The above Pie Chart show that 73% respondent are agree with the statement Branded products are better than Local products, but 27% respondent said that Local products are also very good in terms of quality and quantity.

40

INDIVIDUAL'S PREFERENCE FOR SIZETable: 18Frequency 91 7 2 100 Percent 91.0 7.0 2.0 100.0 Valid Percent 91.0 7.0 2.0 100.0 Cumulative Percent 91.0 98.0 100.0

Valid

SMALL MEDIUM BIG Total

Chart: 18

INDIVIDUAL'S PREFERENCE FOR SIZEBIG MEDIUM

SMALL

Interpretation:-The above Pie Graph show that 91% people who are individual like small size of snacks which is of Rs. 5 only. They prefer to purchase small size snacks either i.e. chips or namkeens. Only 7% individual purchase Medium size snacks of Rs.10 or Rs. 20 and 2% individual purchase big size of 500Gm to 1 Kg.41

FRIENDS OR GROUP'S PREFERENCE FOR SIZETable: 19Valid SMALL MEDIUM BIG Total Frequency 24 70 6 100 Percent 24.0 70.0 6.0 100.0 Valid Percent 24.0 70.0 6.0 100.0 Cumulative Percent 24.0 94.0 100.0

Chart: 19

FRIENDS OR GROUP'S PREFERENCE FOR SIZEBIG SMALL

MEDIUM

Interpretation:- The above Pie Graph show that 70%

people who are in groups like medium size of snacks which is of Rs. 10 and 20. They prefer to purchase Medium size snacks either i.e. chips or namkeens. Only 24% friends group purchase Small size snacks of Rs.5 and 6% individual purchase big size of 500Gm to 1 Kg. FAMILY'S PREFERENCE FOR SIZE42

Table: 20Cumulative Percent 3.0 73.0 100.0

Valid

SMALL MEDIUM BIG Total

Frequency 3 70 27 100

Percent 3.0 70.0 27.0 100.0

Valid Percent 3.0 70.0 27.0 100.0

Chart: 20

FAMILY'S PREFERENCE FOR SIZEBIG SMALL

MEDIUM

Interpretation:- The above Pie Graph show that 70% families preference for snacks is medium size of snacks which is of Rs. 10 and 20. They prefer to purchase Medium size snacks either i.e. chips or namkeens. Only 27% families purchase Big size and 3% of them purchase smaller size snacks.43

PREFERENCE FOR SIZETable: 21 SMALL MEDIUM BIG Total Individual 91 7 2 100 Group Friends 24 70 6 100 of Family 3 70 27 100

Interpretation:- The above table shows that individuals want to have small size of Rs. 5 and group of friends or family like medium size snacks of Rs.10 to 20 which is becoming common likes among people. It is crystal clear that big sizes snacks are not liked by majority of people. Sale of small and medium size are very high.REASONS FOR SELLING LOCAL PRODUCTS IN SHOPTable: 22REASONS R1 EASY TO SELL R2 R3 R4 R5 R6 R7 R8 HIGH MARGIN GOOD QUALITY CUSTOMER DEMAND AVAILABILITY CUSTOMER SATISFACTION REPLACEMENT CREDIT AVAILABLE Total Responses 30 32 8 11 1 2 7 9 100 Responses 3 13 33 18 9 7 5 12 100 Responses 4 13 13 4 13 15 5 33 100 Frequency 37 58 54 33 23 24 17 54 300 Percentage 12.3 19.3 18.0 11.0 7.7 8.0 5.7 18.0 100.0

Interpretation:- The table show that retailers used to sale local productsbecause they get High Margins, Credits as well as good Quality. As it can be observed that they get high profits by selling local products so, they also push the products to the customers and they also said that quality is also good so they get good responses.44

REASONS FOR KEEPING BRANDED PRODUCTSTable: 23 REASONS R1 EASY TO SELL R2 CUSTOMER DEMAND E3 AVAILABILITY R4 HIGH MARGIN R5 CREDIT AVAILABLE R6 CUSTOMER SATISFACTION R7 REPLACEMENT R8 GOOD QUALITY Total Frequency 27 50 48 3 3 19 17 43 Percentage 12.9 23.8 22.9 1.4 1.4 9.0 8.1 20.5 100

Interpretation:- The above table shows that Customers demand , GoodQuality and Availability is the key reason to sale branded products. They said that they need not to push the product in the market or to the customers. Due to TV adv. people used to purchase these branded product and they believe in the brand.

REASONS FOR KEEPING BOTH PRODUCTSTable: 24 REASONS R1 HIGH MARGIN R2 CUSTOMER DEMAND E3 AVAILABILITY R4 EASY TO SELL R5 CREDIT AVAILABLE R6 CUSTOMER SATISFACTION R7 REPLACEMENT R8 GOOD QUALITY Total Frequency 10 9 7 28 20 3 0 10 Percentage 11.5 10.3 8.0 32.2 23.0 3.4 0 11.5 99.9

Interpretation: - The retailers said that the combination of snacks from Branded and Local gives us more benefit in terms of Availability and Credits. According to respondent they are getting good quality snacks but they face problems in replacement of the products. 45

RETAILERS CHOICE AMONG CREDIT AND CASH PURCHASETable: 25Valid Percent 68.0 32.0 100.0 Cumulative Percent 68.0 100.0

Frequency Valid PROFIT ON PURCHASE CASH 68 32 100

Percent 68.0 32.0 100.0

CREDIT OF 15 DAYS WITH NORMAL PROFIT Total

Chart: 21

RETAILERS CHOICE AMONG CREDIT AND CASH PROFITCREDIT OF 15 DAYS WI

PROFIT ON CASH PURCH

Interpretation:- The above Pie Chart shows that 68% Retailers want to purchase cash to avail cash discount and only 32% Retailers want credit of 15 to 20 days. In general discussion they also added that they generally get credit of 7 days and according to their sale they also get external discount.46

ConclusionIndian economy is an emerging one and is growing very fast at the average GDP rate of 8 - 8.5%. So, in this emerging market there is a huge competition among snacks products. Many new players are coming who is increasing the competition. The snack food market in India is valued at Rs. 1650 crore and is one of the largest market in the world, out of which potato chips holds the major market share of around 85%. Products covered potato chips, savoury snacks, snacks nuts, and popcorn. Major Snacks brand which has good command over the market is Frito-Lays, Haldiram, Parle Agro. CavinKare company have been launched a newly snacks Garden Namkeens in mainly Mumbai regions. This project is based on new snacks of CavinKare to launch in NRC, where researcher needs to find out the contribution of chips & sticks. For that Research was done various places of the Meerut where the average number of customer which are less than 100 they can be seen an average on 45 outlets in Meerut. As we know that as soon as the number of customer increases to 100-200 the number of outlets keeps on declining and the number goes to 30 and simultaneously as more and more customers are coming the outlets keeps on decreasing. It is seen that the sales of the chips was more than the sticks as there is more varieties of the chips can be seen in the current market scenario compared to sticks so the percentage ratio of chips and sticks is 53.27% and sticks 46.72%. We have seen snacks are coming in different prices in Rs 5 ,Rs 10 ,Rs 15 ,Rs 20 etc. We have concluded that the highest number of snacks which has the highest sales is the Rs 5 and Rs10 as it is said by 100 retailers among the whole Meerut region. It is seen that in market different flavours of snacks are got to be seen and the flavour which is being preferred more is Salted and Masala as compared to all other flavours. All companies are having their own planning and business strategies but the company who is having the best, is the most successful company among its competitors. So the company can get success within its competitors by applying best and effective marketing strategies.

47

LimitationThis research is related to different places of Meerut, which is based on the response of different retailers. The limitations of the research are following: People are too busy and feel uncomfortable to answer us during the one to one conversation During Research People were not able to give us the exact amount of sales at their shops During Research it was observed that asking too many Questions to the shop owners was making them frustrated.

48

RecommendationsProduct: As there is a good market of namkeen so company can work on better distribution of this product through its good network and connectivity. To introduce new flavours in segmented markets of non-vegetarian so company may come up with Roasted Chicken Chips. To compete with Bingo and Lays, Company may introduce a new product GARDEN STARS where snacks will be shape on stars. A company can go for merging with Beverages COCA-COLA INDIA in items of Snacks & Chips. Frequency of demand of bigger size is also not demanded, so company should produce less number of snacks Price: As per the market company has to produce more units of Rs5 and after that Rs 10, Rs20. As per research there is no market of Rs15 so company should not think of producing at this price. Place: To concentrate weak places where no proper supply of snacks is there. To concentration on distribution channels. To target the colleges, schools, hospitals, pups and disks, petrol pumps, busstand, Railway station, picnic places. To target the place which is near by wine shops because there are more sales of snacks are seen there. Focus on three markets undifferentiated, differentiated, concentrated. Promotion: Advertising: - it should have clear objective and message to people, which has not been found in recent ads. With T.V. adv. People must be connected with emotions which is very important at present era. Money for DISPLAY should be given to Retailers on the basis of Target, so that they will pay more attention towards the products. Sales promotion:- Company can provide more commission to the retailer for increasing sales and popularity among the retailers. It can provide: Cash Discount Appointment of sales promoter. As the company is giving extra amount of chips with in the packet instead of that company may think of giving Rs.1, Rs.2 Chick Shampoos or Chinnis Pickle along with snacks and chips.49

Occasional discounts or schemes will be beneficial to increase the sales. Company should provide side stand to every retailer to promote the sales and Sales persons should frequently visit the Retailers.

BibliographyBooks Principle of marketing - Philip Kotler & Gray Armstrong 15th Edition, Tata McGraw-Hill (Marketing Research 3rd Edition), Marketing Research - An Applied Orientation (5th Edition). Website 1- Savoury snacks in India data monitor market study, www.reportreserch.com 2- ICON group international 2007-12outlook for instant hot snack in India. www.researchandmarkets.com 3- Food market to grow two folds by 2025, www.ibef.org/indian in IBEF. 4- Indian food market set to double by 2025, www.timesofindia.indiantimes.com on July 29, 2008 5- In the Case on snacks namkeen comprehensive study, www.managementparadise.com on June 15th 2008. 6- ITC offers extra snacks to take on PepsiCo, www.business_standard.com on 17-11-2008, By Sapna Agarwal, Mumbai

50

AppendicesData Collection by:Sl. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 NAME OF OUTLET Nimit Tea Stall and Conf. Anand Trading Company Mayur Confectioners New Daily Bat Point Jai hanuman Provision Store Varun Store Mansa General store Goyal general store Sachin General Store Aggrawal Traders Shree Sai Store Manoj Tea Stall Aarora Confectioners Ashok General Store Bansal Store Desi Bite Vishal Chat Bhandar Om Kirana Muskan Confectionary New Shakti Bekars Sumit Confectionary Bansal Kirana and General Store Aditya Enerprises Mukesh Confectionary Rashila Petha Palace Dinesh Bettle Shop Ranjeet Tea Stall Monte Juice corner Munna Pan Massala Sandeep Confectioners Grand Store's Bekers & ADDRESS F-Block, Shastri Nagar F-Block, Shastri Nagar F17-Block, Shastri Nagar Aaditya Market, Kuti Chauk Kuti Chauraha Kuti Chauraha Kuti Chauraha, GBlock Kuti Chauraha Kuti Chauraha Kuti Chauraha Dharam Kata, Kuti Chauraha D-Block, Awash Vikash Market D-Block, main Road D-Block D-Block Central Market Central Market Central Market Central Market Central Market Sector 2 C-15/4 Shastry Nagar C-2/2 Central market Meerut Rangoli Road Rangoli Road Rangila Road Garh Road Ambedkar College, Garh Road Garh Road 617/6 Tejgarhi NAME OF RESPONDENT Pulkit Kumar Anand Prakash Mayur Gupta Dharmendra Kumar Ashok Prasad Varun Kumar Mr. Mansa Gupta Jagdish prasad Sachin Kumar Aashish Kumar Aggrawal Aman Manoj Kumar Deepak Aarora Ashok Nikhil Bansal Arun Singhal Mohit Sainik P.K.Rastogi Sujit Bhatiya Anita Sumit Avnish Bansal Dinesh Kumar Mukesh Vikash Saini Dinesh Kumar Ranjeet Monte Kuswaha Munna Sanjeev Kumar Singh Sumit Prakash Sharma 51

32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68

Confectionary U.B.Kirana Store Bangal Sweets Sumit Paan Masala Adi Shree Provision Confectionary Pankaj Confectionary Kiran Provision Store Sumit Confectionary & Shopping Centre Shivam Kirana Store Rohit Paan Shop National Confectionary Bhawra Pan Shop Anonymous Gupta Pan & Juice Corner Khusbanda ji ki dukan Veer Bhanu Dayanand Kirana Store Garg Kirana Store Shayam Traders Balaji Bhandar

Tejgarhi Tejgarhi Tejgarhi Tejgarhi Tejgarhi Tejgarhi Tejgarhi, Garh Road 222 Garh Road Old Hapur Stand Old Hapur Stand Old Hapur Stand Choupla Gola road Old Hapur Stand Bhagat singh marg Hapur Bhagat singh marg Hapur Bhagat singh marg Hapur Bhagat singh marg Hapur Bhagat singh marg Hapur

Vaibabh Bharat Kumar Sumit Kumar Verma Mehul Jain Pankaj Rai raju Verma Sumit Kumar Saurabh Garg Sachin Ansar Md. Umar Gazi Anonymius Mahuh Gupta Khusbanda ji Dayanand Mehul Garg Shayam Babu Ram Babu Balajee Anonymius Akeel Ansari Md.Aslam Ansari Md. Raseed Ansari Md. Aaftab Ansari Kareem Deepak Pandey Gulzar Khan ramesh kumar Pandit Dayal sharma Virendra Kumar Mukesh kumar Prabhu Dayal Ashok Chabra Lokesh kumar Sumit Kumar Aashu kumar Aasif Salmari 52

Shree balajee Namkeen Bhandar Anonymous Bhagat singh marg Hapur Akeel Ansari Store Old Hapur Stand Khusi Kirana Store Old Hapur Stand Raseet Tea Stall Old Hapur Stand Md. Aaftab Confectionary S.k.road Hapur Kareem Pan Shop near Gul Marg Cinema Deepak Pandey Store 56- S.K.Road Khan Bettle shop Near Gul Marg Cinema hall Pappu Tea Store Indra Chauk Pandit Juice Indra Chauk Virendra Kumar Indra Chauk Confectionary Mukesh Tea Stall Indra Chauk Prabhu dayal pan Dukan Indra Chauk Chabra Juice & Coffee Indra Chauk point Puja Confectionary Indra Chauk Sai Juice Corner Indra Chauk Aashu Confectionary Indra Chauk Nadim Tea Stall Indra Chauk

69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100

Shankar tea Stall R.K.Fast Food Sunny Cigratte Shop Jolly Confectionary Batra Document & Stationary Shivni Store City Heart Rasraj Resturent & Sweets Singhal Store Nanak Chand Kirana Store Hanif Paan Shop Panjab Kirana Store Sanjay Kirana Store Aggrawal Kirana Store Soam kirana Store Prahlad Confectionary Raju Teal Stall Bansal Kirana store Rathode Tea Stall Sumit Store Shopping Centre Amar Store Sonia Store Annu Trading Archana Stationary & confectionary Purnima Confectionary Jain Kirana Store Gupta Store Shree Laxmi Kirana Ram Chandra Rawri Gazak Babu Ji Juice & Confectionary Kwality Ice Cream Parlour

E.B. Cinema Indra Chauk Indra Chauk Indra Chauk Mission compound Mission compound BegumBridge BegumBridge BegumBridge BegumBridge Chopla Gola BegumBridge BegumBridge BegumBridge BegumBridge BegumBridge BegumBridge BegumBridge Begum Bridge, delhi Road Begum Bridge, delhi Road Begum Bridge, delhi Road Begum Bridge, delhi Road Begum Bridge, delhi Road Begum Bridge, delhi Road Begum Bridge, delhi Road Begum Bridge, delhi Road Begum Bridge, delhi Road Begum Bridge Begum Bridge Begum Bridge Begum Bridge Begum Bridge

Mr. Shankar Kuni Pal Sunny kumar Mohan Prasad H.K. Batra Nitin Sumit Kumar rakesh Rastogi Akash Deep Ravi aarora Hanif Ansari Ranjeet Singh Sanjay Kumar Arun Agrawal Satendra Soam Prahlad Prasad Raju Ramesh Bansal Pawan Rathore Sumit Gupta Raushan Soni Rajendra Prasad Satendra sharma Vijay Sharma Arun Prasad Bittu Aggrawal Anil Jain Mukesh Gupta Laxmi ji Sri Ram Chandra Ram Babu Surendra Ji

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MASTER SCHOOL OF MANAGEMENTRetailers Questionnaire for Snacks.I am student of MSM, F-17, Shastri Nagar, Meerut. (Phone No. 01212769984). As a part of our assignment we have to complete a research project, for that I have been given a project on Snacks. I request you to cooperate me and share information in the following questionnaire. I assure you that the information provided by you will be kept CONFIDENTIAL and only aggregate results will be used in the project report.Researcher Name: Amit Kumar. Mobile No.7830685485

QUESTIONNAIRE.1. When do you place a new order for snacks? A. Weekly B. Fortnightly C. Monthly D. Others. Please specify_________________. 2. Do you get money for displaying the product? A. Yes. B. No If yes please specify following Product Money Received

No. of days.

3. If No which product you display highly (visibility of the product)? 4. Which product do you want to sell? And why A. Branded B. Local C. Both Please give at least three important reasons for keeping the different kind of product Branded Local Both54

5. Ranks the effectives of the following for advertising snacks Highly Effective Very effective Effective Neutral Not effective A. T.V. B. F.M. C. News Paper . D. Word of Mouth. E. Internet. 6. Which Packaging do you think plays an important role while buying Snacks? A. Window Packaging. B. Glossary packaging. C. No impact. 7. Do you feel branded products are better compared to local products? A. Yes. B. No 8. Which size of the product is purchased most by the customer? Small Medium Big Individual Groups Of Friends Family 9. Rank the importance of following to keep the product in your store. (1 is Highest) 1 2 3 4 5 A. Quality. B. Quantity. C. High Margin. D. Availability of Credit. E. Benefits attached with achieving target. 10. Kindly tell me what you want from the company? A. Profits on Cash Purchases. B. Credit of 15 days and moderate profits. 11. Which snacks do you keep in your shop/ store?55

Purchase Price

Size (in gram)

M.R.P (in Rs.)

Tick (yes/no)

Sale/ Week56

Primar y scheme ( %of commis sion on sale )

Scheme Seconda ry (the benefits earned on achievin g the target )

Haldiram

Aloo Bhujia Bhujia Khata Mitha Navratna Kaju Mix Kashmiri Mix Panchratna Nimbu Masala Channa jor Moong Dal Chana Dal Boondi Salted Peanut Classic Cracker Jeera mix Cracker Aloo Bhujia Bhujia Khata Mitha Navratna Kaju Mix Kashmiri Mix Panchratna Nimbu Masala Channa jor Moong Dal Chana Dal Boondi

22g 22g 22g 22g 22g 22g 22g 22g 22g 22g 22g 22g 22g 22g 22g 48g 48g 48g 48g 48g 48g 48g 48g 48g 48g 48g 48g

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 10 10 10 10 10 10 10 10 10 10 10 10

Haldiram

Stock Maintained/Week

Brand

Product

Salted Peanut 48g Classic 48g Cracker Jeera mix 48g Cracker

10 10 10 36 36 36 33 54 36 36 36

Haldiram

Aloo Bhujia Bhujia Khata Mitha Navratna Kaju Mix Kashmiri Mix Panchratna Nimbu Masala Channa jor Moong Dal Chana Dal Boondi Salted Peanut Classic Cracker Jeera mix Cracker Aloo Bhujia Bhujia Khata Mitha Navratna Kaju Mix Kashmiri Mix Panchratna Nimbu Masala Channa jor Moong Dal Chana Dal Boondi Salted Peanut Classic Cracker Jeera mix Cracker

200g 200g 200g 200g 200g 200g 200g 200g 200g 200g 200g 200g 200g 200g 200g 400g 400g 400g 400g 400g 400g 400g 400g 400g 400g 400g 400g 400g 400g 400g

Haldiram

57

Haldiram

Aloo Bhujia Bhujia Khata Mitha Navratna Kaju Mix Kashmiri Mix Panchratna Nimbu Masala Channa jor Moong Dal Chana Dal Boondi Salted Peanut Classic Cracker Jeera mix Cracker A. S. Green O. S. Tomato T. M. Masala C. Salted U Chips U. Chips A. S. Green O. S. Tomato T. M. Masala. C. Salted. U. Chips. U. Chips A. S. Green O. S. Tomato T. M. Masala C. Salted U. Chips U. Chips Kurkure

1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 1000 14g 14g 14g 14g 14g 14g 30g 30g 30g 30g 30g 30g 63g 63g 63g 63g 63g 63g 5 5 5 5 5 10 10 10 10 10 20 20 20 20 20 20 358

Frito-Lays

Frito-Lays

Kurkure Chilly Kurkure Kurkure

3 3 3

Local

Others

Information of RespondentName of Outlet:__________________________________. Address:_______________________________________. Town:_________________________________________. Phone No.:____________________________________. Name of respondent: _____________________________. Gender:_______________________________________. Age:__________________________________________.59

Education qualification: ____________________________

THANK YOU.

Distributors Questionnaire..

MASTER SCHOOL OF MANAGEMENTDistributors Questionnaire for Snacks.I am student of MSM, F-17, Shastri Nagar, Meerut Phone No.-01212769984. As a part of our assignment I have been given a project on snacks. I request you to kindly co-operate me by providing the information as per the questionnaire. I assure you that the information provided by you will be kept CONFIDENTIAL and only aggregate results will be used in the project report.Researcher Name: Amit Kumar. Mobile Number 7830685485

QUESTIONNAIRE1. Does the company give you cash discount? A. Yes. B. No. If yes please mention percentage________%.60

2. Does the company give you credit? A. Yes. B. No. If yes please mention number of days____________. 3. Does company send you on any tour? A. Yes. B. No. If yes please mention places________________________. 4. On an average, the percentage gain over the purchase price of the brand you are selling is___________________. 5. Kindly tell about the schemes which are provided to you by the company: Primary Scheme Secondary Scheme Target Scheme Gifts

6. Do you get damage claim from the company? A. Yes B. No If yes, please mention Damage Percentage. Period for settlement.

7. Mention the months in which your sales are relatively higher ________________________________. 8. Does the company give you money to organise display? A. Yes. B. No. If yes please mention: Money given per No. of days allowed Display to display

Total No. of Display

61

9. Does other distributors of the same company enter in your territory? A. Yes. B. No. If yes please mention the loss of market share is______%. 10. What facilities do you provide to your wholesalers, retailers and others (like tea stall, pan wala?) Credit (in days) Cash discounts Others (Gifts). Wholesalers Retailers Small shops 11.Do you have to make extra effort to sell any product of the company ? A. Yes. B. No. If yes, please mention the name of the product and extra efforts put by you. __________________________________________________________. 12. Do you get the following facility from the company? Items Yes No Posters Sine boards Banners Calendar Fare for warehouse Fare for carriage inward Fare for carriage outward 13. Please provide the price list of your selling price to wholesalers, retailers. 14 Please provide following details

62

PRODUCT SIZE

M.R.P.

Quantity sold in pervious month

Information of RespondentName of

Outlet:____________________________________. Distributors Name:________________________________. Name of company:_________________________________. Area served in K.M.________________________________. Address:_________________________________________. Town:__________________________________________. Gender:________________________________________. Age:___________________________________________. Phone No.:______________________________________.

THANK YOU.

63