project final sangram kumar dash
TRANSCRIPT
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A
Project Report
On
THE STUDY ON VISUAL MERCHANDISING IN BRITANNIA
INDUSTRIES LTD. AND ITS IMPACT ON SALES.
A Project Report Submitted in Partial Fulfillment forthe Award
Of
POST GRADUATE DIPLOMA IN MANAGEMENT
(Batch 2010-2012)
Submitted By:
Sangram Kumar Dash
Registration No. 6073
Submitted To: - Director Academics:-
Prof. Bharat Bhusan Singh Dr. Sabyasachi Rath
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DECLARATION
I Sangram Kumar Dash hereby declare that the project titled The Study on visual
merchandising in BRITANNIA INDUSTRIES LTD. and its impact on salesis an
original work carried out under the guidance ofProf.Bharat Bhusan Singh. The report
submitted is a bonafide work of my own efforts and has not been submitted to any
institute or published before.
Signature of the student
Sangram Kumar Dash
Registration No- 6073
Date:
Place: Hyderabad
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ACKNOWLEDGEMENT
It is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of well-
wishers who have in some way or other contributed in their own special ways to the
success and completion of this summer internship project.
I express my sage sense of gratitude and indebtedness to my Director,AcademicsDr.
SabyasachiRath of VishwaVishwani Institute of System and Management,
Hyderabad, from the bottom of my heart, for his unprecedented support and faith that I
do the best and his valuable recommendation and for accepting this project.
Further I express my sage sense of gratitude to Mr. Dipesh Kale, Area SalesManager (BIL, Hyderabad) who was kind enough to give an opportunity to work
under his immense expertise. I sincerely thank to him for his valuable suggestions,
motivation and encouragement.
I express my sense of gratitude and indebtedness toProf. Bharat BhusanSingh ,for
his unprecedented support and faith that I do the best and his valuable
recommendation and for guiding me in this project.
I would be failing in my duty if I dont express my profound gratitude to the entire
respondent who has spent their valuable time to answer the questionnaire.
Last but not the least; I would also like to expand my thanks to all faculty members of
VishwaVishwani Institute of System and Management, Hyderabad, who have helped a
lot during the course of my project.
I also extend my heartfelt thanks to my family.
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TABLE OF CONTENTS:
Chapter.No.
Content PageNo.
Chapter 1 Introduction 1-10
Chapter 2 Industry Profile
Company Profile
Literature Review
11-51
Chapter 3 Researchmethodology
52-58
Chapter 4 Data collection
Analysis&Interpretation
59-68
Chapter 5 Findings
Recommendations
Conclusions
69-73
Bibliography
Books/ Articlesreferred
Websites referred
74-75
Annexure Sample Questionnaire 76
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[1]
Chapter-1
Introduction
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INTRODUCTION
A successful FMCG business requires that a distinct and consistent image be
created in the customers mind that permeates all product and service
offerings. Visual merchandising can help in creating positive customer imagethat leads to successful sales. It not only communicates the stores image, but
also reinforces the stores advertising efforts and encourages impulse buying
by the customer. Visual merchandising is a major factor often overlooked in
the success or failure of a retail store. It is second only to effective customer
relations.
Visual merchandising can be defined as everything the customer sees, bothexterior and interior, that creates a positive image of a business and results in
attention, Interest, desire and action on the part of the customer. A story can
be told that communicates to the prospective customer what the store is all
about. It includes the dramatic presentation of merchandise as well as other
important features that create the stores overall atmosphere.
Eighty per cent of the impressions are created by sight; that is why one
picture is worth a thousand words. Each customer has a mental image of a
store and its merchandise. A store should have an inviting appearance that
makes the customer feel comfortable and yet eager to buy. Some businesses
maintain minimum staffs to reduce costs, which mean it is even more
important for the merchandise to sell itself. Greater effort must be spent on
merchandise displays that make it easier for the customer to find and
purchase the items they want or need.
The basic objective for visual merchandising in FMCG sector is to create
desire to attract customers to a place of business in order to sell the
merchandised products. Visual merchandising is offered to the Customer
through exterior and interior presentation. Each should be coordinated with
the other using the stores overall theme. Creating and maintaining a stores
visual merchandising plan, however, is not a simple task. It is necessary to
continually determine what the customersees.
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Objective of the study:-
All companies are having their own planning and business strategies but the
company who ishaving the best, is the most successful company among itscompetitors. So the company can getsuccess within its competitors by
applying best and effective marketing strategies.
To identify the visualize merchandising and product image in market.
To know the offers to customer, retail outlets and competitors offer
given to customer retail outlets.
To know the impact of merchandising.
To know the brand preferences by the customers.
To track the sales in the particular beat.
Scope and the Limitation of the study
The scope of study is limited to the respondents are selected from in
and around Hyderabad and secunderabad region.
The project is carried out for the period of 45 days only.
The sample unit was also 100 respondents.
However, retailer outlets owners and people looking for new cars are
located in other places i.e.locally and even in neighboring states. Only
opinion of respondents of Hyderabad city was consider for finding out
the opinions of respondents.
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Facility of visual merchandizing in FMCG:
Visual merchandising starts with the store building itself. The management
decides on the store design to reflect the products the store is going to sell
and how to create a warm, friendly, and approachable atmosphere for its
potential customers.
Many elements can be used by visual merchandisers in creating displays
including colour, lighting, space, product information, sensory inputs (such as
smell, touch, and sound), as well as technologies such as digital displays and
interactive installations.
Visual merchandising is one of the final stages in trying to set out a store in a
way that customers will find attractive and appealing and it should follow and
reflect the principles that underpin the stores image. Visual merchandising is
the way one displays 'goods for sale' in the most attractive manner with the
end purpose of making a sale. "If it does not sell, it is not visual
merchandising."
Especially in todays challenging economy, people may avoid designers/
visual merchandisers because they fear unmanageable costs. But in reality,
visual merchandisers can help economise by avoiding costly mistakes. With
guidance of a professional, a retailer can eliminate errors, saving time and
money. It is important to understand that the visual merchandiser is there, not
to impose ideas, but to help clients articulate their own personal style.
Visual merchandising is the art of implementing effective design ideas to
increase store traffic and sales volume. VM is an art and science of displaying
merchandise to enable maximum sale. VM is a tool to achieve sales and
targets, a tool to enhance merchandise on the floor, and a mechanism to
communicate to a customer and influence his decision to buy. VM uses
season based displays to introduce new arrivals to customers, and thus
increase conversions through a planned and systematic approach by
displaying stocks available.
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Comparison of todays merchandising process with
the future era in FMCG sector:
Fig-1.1
Many of the processes weve highlighted in the above diagram have been
historically considered traditional practices for General Merchandise and
Apparel retailers, while those selling Fast Moving Consumer Goods were
traditionally more interested in market basket analysis, boosting average
transaction value with loyalty programs, and managing within any given
category.
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Fig-1.2
Here we find FMCG will have achieved parity, or in some cases actually
leapfrogged their GMA cousins in merchandise processes.
Thus, we find in 21stCentury merchandising: FMCG outlets will cross best
practices across all segments, looking for similarities and opportunities alongwith the more obvious differences.
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Model of buying behavior by creating impulse in the
mind of consumer in FMCG sector through
merchandising:
Fig-1.3
In the above model it simplifies that how merchandising creates
impulse in the mind of customer.
First when a customer enters into a FMCG outlet then he first thinks
about his need.
Then he sees various alternatives in this context the marketer should
create the marketing of product by showing him various products in the
display.
Here in this step the product which looks good from outside or the
product which kept sequentially with the help of merchandising this
product can only able to create impulse in the mind of customer.
Then only the customer buys this product without bothering about any
other product.
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Impact of merchandising on FMCG product:
Fig-1.4
In the above diagram it shows that the merchandising affects is high in
the product categories like snacks, chocolates and candies and biscuit.
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Increasing Impact of Merchandising on Product
Purchase:
Fig-1.5
The above pyramid shows that the high effect of merchandising on
product group like chocolates and candys, biscuits and snacks.
Then the medium effects merchandising on the product group like
personal care, home care, hair care, food items and others.
The very low effects of merchandising on product group like beverage
and milk products.
There is no effect of merchandising on the product group like milk, oil &
ghee, spices and tea &coffee.
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Various Kind of impact through visual merchandising:
Fig-1.6
Here in the above model it shows the various impact of visual
merchandising on the consumer.
First merchandising creates impulse buying by which the customerwants to buy more and more.
It is also help in brand preference by the customer through
merchandising.
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Chapter-ii
Industry profile,
Company profile and
Litereture review
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Introduction about FMCG industry:
Products which have a quick turnover, and relatively low cost are
known as Fast Moving Consumer Goods (FMCG).
FMCG products are those that get replaced within a year, examples of
FMCG generally include a wide range of frequently purchased
consumer products such as toiletries, soap, cosmetics, and tooth
cleaning products, shaving products and detergents, as well as other
non-durables such as glassware, bulbs, batteries, paper products, and
plastic goods.
FMCG may also include pharmaceuticals, consumer electronics,
packaged food products, soft drinks, tissue paper, and chocolate bars.
The volume of money circulated in the economy against FMCG
products is very high.
Number of products the consumer use is very high, competition in the
FMCG sector is very high resulting in high pressure on margins.
FMCG companies maintain intense distribution network, companies
spend a large portion of their budget on maintaining distribution
networks.
New entrants who wish to bring their products in the national level need
to invest huge sums of money on promoting brands.
Manufacturing can be outsourced. A recent phenomenon in the sector
was entry of multinationals and cheaper imports; also the market is
more pressurized with presence of local players in rural areas and
state brands.
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Characteristics of FMCG industry:
From the consumers' perspective:
Frequent purchase
Low involvement (little or no effort to choose the item -- products
with strong brand loyalty are exceptions to this rule)
Low price
From the marketers' angle:
High volumes
Low contribution margins
Extensive distribution networks
High stock turnover
Scope of FMCG industry:
The term FMCG refers to those retail goods that are generally replaced
or fully used up over a short period of days, weeks, or months, and
within one year. This contrasts with durable goods ormajor appliances such as kitchen
appliances, which are generally replaced over a period of several
years.
FMCGs have a short shelf life, either as a result of high consumer
demand or because the product deteriorates rapidly.
http://en.wikipedia.org/wiki/Contribution_marginhttp://en.wikipedia.org/wiki/Distribution_%28business%29http://en.wikipedia.org/wiki/Stock_turnoverhttp://en.wikipedia.org/wiki/Durable_goodhttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Major_appliancehttp://en.wikipedia.org/wiki/Durable_goodhttp://en.wikipedia.org/wiki/Stock_turnoverhttp://en.wikipedia.org/wiki/Distribution_%28business%29http://en.wikipedia.org/wiki/Contribution_margin -
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FMCG industry in Indian perspective:
Indias FMCG sector is the fourth largest sector in the economy and creates
employment for more than three million people in downstream activities. Its
principal constituents are Household Care, Personal Care and Food &
Beverages. The total FMCG market is in excess of a high growth. It is
currently growing at double digit growth rate and is expected to maintain a
high growth rate. FMCG Industry is characterized by a well-established
distribution network, low penetration levels, low operating cost, lower per
capita consumption and intense competition between the organized and
unorganized segments.
Market share movements indicate that companies such as Marico Ltd and
Nestle India Ltd, with domination in their key categories, have improved their
market shares and outperformed peers in the FMCG sector. This has been
also aided by the lack of competition in the respective categories.
Singleproduct leaders such as Colgate Palmolive India Ltd and Britannia
IndustriesLtd have also witnessed strength in their respective categories,
aided by innovations and strong distribution. Strong players in the economy
segment like Godrej Consumer Products Ltd in soaps and Dabur intoothpastes have also posted market share improvement, with revived growth
in semi-urban and rural markets.
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Overview Indian FMCG Sector:
FMCG Industry is expected to have a market of 40,000 crore by 2020
according to ministry of food.
Fourth largest sector in the economy with a total market size in
excess of US$ 13.1 billion.
Strong MNC presence and is characterised by a well-established
distribution network, intense competition between the organised and
unorganised segments and low operational cost.
Availability of key raw materials, cheaper labour costs and presence
across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$
33.4 billion in 2015.
Penetration level as well as per capita consumption in most product
categories like jams, toothpaste, skin care, hair wash etc. in India is low
indicating the untapped market potential.
Burgeoning Indian population, particularly the middle class and the
rural segments, presents an opportunity to makers of branded products
to convert consumers to branded products.
Growth is also likely to come from consumer 'upgrading' in the
matured product categories.
With 200 million people expected to shift to processed and packaged
food by 2010, India needs around US$ 28 billion of investment in the
food-processing industry.
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FMCG Category and products:
Category Products
Household Care Fabric wash (laundry soaps and synthetic
detergents); household cleaners(dish/utensil
cleaners, floor cleaners, toilet cleaners, air
fresheners, insecticides and mosquito
repellents,
metal polish and furniture polish).
Food and Health beverages; soft drinks; staples/cereals;
Beverages bakery products (biscuits,
bread, cakes); snack
food; chocolates; ice cream; tea; coffee;
soft
drinks; processed fruits, vegetables; dairy
products; bottled water; branded flour;
branded
Rice; branded sugar; juices etc.
Personal Care Oral care, hair care, skin care, personal
wash
(soaps); cosmetics and toiletries;
deodorants;
Perfumes; feminine hygiene; paper
products.
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Factors affecting Indian FMCG industry:
Large domestic market
India is one of the largest emerging markets, with a population of over one
billion. India is one of the largest economies in the world in terms of
purchasing power and has a strong middle class base of 300 million.
Rural and urban potential
Around 70 per cent of the total households in India (188 million) reside in the
rural areas. The total number of rural households is expected to rise from 135
million in 2001-02 to 153 million in 2009-10.
The Indian rural market with its vast size and demand base offers a huge
opportunity for investment. Rural India has a large consuming class with 41
per cent of Indias middle-class and 58 per cent of the total disposable
income. With population in the rural areas estimated to have risen to 153
million households by 2009-10 and with higher saturation in the urban
markets, future growth in the FMCG sector will come from increased rural and
small town penetration. Technological advances such as the Internet and e-
commerce will aid in better logistics and distribution in these areas.
The rural and urban profile is given below:-
Tab-2.1
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Exports:
India is one of the worlds largest producers of a number of FMCG products
but its exports are a very small proportion of the overall production. Total
exports of food processing industry were $6.9 billion in 2009-10. Though theIndian companies are going global, they are focusing more on the overseas
markets like Bangladesh, Pakistan, Nepal, Middle East and the CIS countries
because of the similar lifestyle and consumption habits between these
countries and India.
India - a large consumer goods spender:
An average Indian spends around 40 per cent of his income on grocery
and 8 per cent on personal care products. The large share of fast moving
consumer goods (FMCG) in total individual spending along with the large
population base is another factor that makes India one of the largest FMCG
markets. Even on an international scale, total consumer expenditure on food
in India at US$ 120 billion is amongst the largest in the emerging markets,
next only to China.
Change in the Indian consumer profile:
Rapid urbanisation, increased literacy and rising per capita income, have all
caused rapid growth and change in demand patterns, leading to an explosion
of new opportunities. Aspiration levels in this age group have been fuelled by
greater media exposure, unleashing a latent demand with more money and a
new mind set.
Demand-supply gap:
Currently, only a small percentage of the raw materials in India are processed
into value added products even as the demand for processed and
convenience food is on the rise. This demand supply gap indicates an
untapped opportunity in areas such as packaged form, convenience food and
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drinks, milk products etc. In the personal care segment, the low penetration
rate in both the rural and urban areas indicates a market potential.
The Structure:
The Indian FMCG sector is the fourth largest sector in the economy and
creates employment for three million people in downstream activities. Within
the FMCG sector, the Indian food processing industry represented 6.3 per
cent of GDP. A distinct feature of the FMCG industry is the presence of most
global players through their subsidiaries (HLL, P&G, Nestle), which ensures
new product launches in the Indian market from the parent's portfolio.
Critical operating rules in Indian FMCG sector:
Heavy launch costs on new products on launch advertisements, free
samples and product promotions.
Majority of the product classes require very low investment in fixed
assets
Existence of contract manufacturing
Marketing assumes a significant place in the brand building process Extensive distribution networks and logistics are key to achieving a
high level of penetration in both the urban and rural markets
Factors like low entry barriers in terms of low capital investment, fiscal
incentives from government and low brand awareness in rural areas
have led to the mushrooming of the unorganised sector
Providing good price points is the key to success.
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Market size of FMCG industry in India:-
Fast moving consumer goods (FMCG) sector in India is one of the largest
sectors in the economy with estimated total market size of around Rs 110,000
crore in 2010. After sluggish growth for couple of years through 2002-2004,
the segment has picked up the speed again and has been clocking
substantial growth numbers during last 5-6 years. The sector also continued
to do reasonably well following the global financial crisis as the rural India,
which has become the new demand heaven for the industry, remained largely
aloof from the slowdown. With the Indian economy now back on the high
growth trajectory, the industry has massive potential to grow further,
particularly in rural Indian and the high end products as expected size will be
around RS180 crore in 2015.
FMCGs growth story started the deregulation of Indian economy in early
1990s which saw dismantling of the license raj, resulting in a spurt in new
companies and entry of a number of foreign brands. With relatively lesser
capital and technological requirements, a number of new brands emerged
domestically as well while the relaxed FDI conditions led to induction of manyglobal players in the segment. Both these factors resulted in leading to rapid
development of the FMCG market in India.
Fig-2.1
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Segment of Indian FMCG industry:-
Indian FMCG sector is characterized by strong presence of multinational
companies.
The segment of Indian FMCG industry has various segments like personalcare, household, food products etc. Compared to other manufacturing
sectors, FMCG is relatively much less capital-intensive. But the sector
demands high expenditure on branding and distribution. Most companies in
the sector create value through product differentiation, package innovation,
and differential pricing and highlighting the functional aspect of their products.
Fig-2.2
Here we can see in the above pie chart it shows that the other segment
occupied 43% whereas hare care, over the counter (i.e. drug), household,
food products, personal care, baby care, fabric care occupied 8%, 4%, 4%,
5%, 22%, 2%, 12% respectively.
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Key players in Indian FMCG sector:-
Hindustan Unilever Ltd
Indian Tobacco Company
Nestle India
GCMMF (Amul)
Dabur India
Cadbury India
Britannia Industries
Procter & Gamble Hygiene and Health Care
Marico Industries
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Brief introduction of the key players
Hindustan unilever LTD.:-
Earlier known as Hindustan Lever Limited
It was formed in 1933 as Lever Brothers India Limited.
Headquartered in Mumbai,
HUL is the market leader in Indian products such as tea, soaps,detergents etc.
The companys statement of corporate purpose is to meet theeveryday needs of people, everywhere.
The company was renamed in late June 2007 to "Hindustan UnileverLimited, to provide the optimum balance between maintaining heritageof the company and future benefits.
ITC LTD:-
ITC was incorporated on August 24, 1910 under the name Imperial
Tobacco Company of India Limited.
As the Company's ownership progressively Indianite, the name of the
Company was changed from Imperial Tobacco Company of India
Limited to India Tobacco Company Limited in 1970 and then to I.T.C.Limited in 1974.
In recognition of the Company's multi-business portfolio encompassing
a wide range of businesses - Cigarettes & Tobacco, Hotels, Information
Technology, Packaging, Paperboards & Specialty Papers, Agri-
business, Foods, Lifestyle Retailing, Education & Stationery and
Personal Care.
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Nestle India:
The journey of Nestle India began in the year 1912 in the name of the
Nestle Anglo-Swiss Condensed Milk Export Company Limited.
It deals with selling and importing finished products in Indian market.
The company is one among the top wealth creators of India.
The company is manufacturing Indian Consumer products with
international standards.
GCMMF (Amul):
GCMMF stands for Gujarat Cooperative Milk Marketing Federation.
The company aims at offering good returns to the farmers and at
fulfilling the requirements of consumers by offering them quality
products.
Theproducts offered by GCMMF, Amul range of products is the most
famous and millions of people in India use Amul products.
Some of the products of Amul include Amulya, Amul Milk, Nutramul,
Amul Ice Cream, AmulShirkhand, Amul Chocolates, Amul Cheese,
Dabur India:
Dabur India deals with personal and health care products.The recent
turnover of this company is Rs. 1899 crores.
The company is divided into two major strategic business units being
consumer health division and consumer care division.
The company has manufacturing units in different countries and some
of their popular brand products are Daburlaldantmanjan,
daburchyawanprash, daburamla, hajmola, anmol, vatika and Dabur red
tooth paste.
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Cadbury India:
Cadbury came into India in the year 1948 by importing consumer good
namely chocolates.
They were dealing only with importing chocolates in different parts of
India like Himachal Pradesh, Bangalore, Gwalior, Pune and Mumbai
and sales offices at Chennai, New Delhi, Kolkata and Mumbai.
Some of their popular products are Cadbury diary milk, celebrations,
clairs, perk and 5 star and they are also popular for their milk drink
bournvita.
Britannia Industries:
Britannia came into market in 1892 in Kolkata.
Britannia industries are dealing with manufacturing of products like
milk, butter, cheese, cakes, rusk, bread and the popular Britannia
biscuits.
Some of their popular branded biscuits are tiger, milk bikis, good day,
pure magic, maskachaska, treat and marie gold.
Procter & Gamble:
Procter & Gamble deals with manufacturing of household cleaner, pet
food and personal care products.
This company is shortly called as P& G and this company is a parent
company of some popular companies like Global Gillette and Clariol.
Some of their popular health care products are Vicks inhaler, Vicks
formula 44 cough syrup, vicks cough drops, Vicks VapoRub and Vicks
Action 500+, whisper etc.
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Marico Industries: Marico Industries is a leading Indian company manufacturing and
exporting consumer products to different countries like SAARC
Countries, Egypt, the Middle East, Bangladesh, UAE and the USA.
During 2010-11, Marico recorded a turnover of Rs. 31.3 billion through
its products and services sold in India and 25 other countries in Asia
and Africa.
Some of their popular products are Parachute, Revive, Shanti, Saffola,and Mediker.
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Swot Analysis of FMCG industry:-
Strengths: Weaknesses:
Well-established distribution
network extending to rural
areas.
Strong brands in the FMCG
sector.
Low cost operations
Low export levels.
Small scale sector
reservations limit ability to
invest in technology and
achieve economies of scale.
Several "me-too products.
Opportunities: Threats:
Large domestic market.
Export potential
Increasing income levels will
result in faster revenue growth.
Imports
Tax and regulatory structure
Slowdown in rural demand
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Indian FMCG Sector Trends:
In this post i have covered multiple trends happening in the Indian FMCG
sector.
Focus on Health
Companies are widening their health food portfolio to cash in on the rich,
urban, health conscious Indian. In recent we have seen flurry of products in
this segment. Have a look of some of them:
Sugar free Chywanprash
butter Lite (Nutralite)Corn Flakes/ Oats
Lays (40% less saturated fats) Snack Smart
Low Calorie Sweetners
Impact of Inflation:
The expenditure of FMCG in the consumer's wallet is coming down year on
year. This is leading to low sensitivity with price increases. Almost a decade
back people use to down trade from expensive brands to value for money
ones. But now the trend is changing. Consumers are not switching to cheaper
substitutes. Rather companies have come with lower quantity SKUs and
make consumers switch from higher to lower SKUs and not from premium to
popular brands (like Dove to Lux International). Just to give you an example,
Henkel instead of increasing the price of their Henkel detergent from Rs. 46 to
Rs. 50, they have launched a new SKU of 400gms for Rs. 40. During the timeof inflation, people shift to sachets of their brands. Sales numbers of FMCG
companies are quite robust.
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Micro Segmentation/ Niches:
Its interesting and funny to see that companies are not leaving any
opportunity to micro segment the market. I can foresee that we are here to
see further segments in different categories. Here are some examples:
Age Sex Specialized Household
Cleaners
a) Junior Horlicks
b) Junior
Chyawanprash
c) Pepsodent Barbie for
Kids/ Colgate
Strawberry
a) Womens
Horlicks
b) Male fairness
cream
a) Kitchen Cleaner: Mr.
Muscle
b) Power Cleaner (Rust):
Easy Off Bang
Low value SKUs:
We all know that it all started in 1980's with shampoos. I think Nano is an
interesting example of an automobile sachet. Here is a small list of sachets:
ShampoosButter (Munna Pack)
Hair Oils (Navratan ThandaThanda Cool Cool)
Noodles (Chotu Maggi)
Jet Age Consumer Products:
Because of changing lifestyles, busy jobs etc. marketers are coming up with
Jet Age consumer products.
Ready to Eat Ready to Drink Ready to Cook
a) Corn Flakes/ Oats
b) Pastas
c) Biscuits
d) Noodles
e) Pizzas
f) Burgers
a) Energy Drinks
b) Non-Cola Drinks
(Juices)
a) Cut Vegetables
b) Soups
c) Parathas/ Roti
d) Snacks
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Under-penetrated Growth Categories:
Barring few main mainstream categories, there are number of FMCG
categories with low penetration are
Mens grooming products
Skin care & Cosmetics
Anti-aging solution
Shampoos
Toothpaste
Deodorants
Low Per Capita Consumption:
Currently we are nowhere near to other developing countries in terms of per
capita consumption. Be it Laundry, Skin Care, Shampoos or deodorants.
Marketers have put in efforts to increase the consumption frequency or
quantum of consumption per occasion. Colgate started the "twice a day"
campaign few years back. Recently we have Good Night coming up with
Double power pack. Per Re1 increase in per capita consumption of a category
will lead to growth of more than 100 crores.
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COMPANY PROFILE
History:-
The story of one of India's favourite brands reads almost like a fairytale. Once upon a time, in 1892 to be precise, a biscuit company wasstarted in a nondescript House in Calcutta (now Kolkata) with an initialinvestment of Rs. 295.
The beginnings might have been humble-the dreams were anythingbut. By 1910, with the advent of electricity, Britannia mechanized itsoperations, and in 1921, it became the first company east of the SuezCanal to use imported gas ovens.
Britannia's business was flourishing. But, more importantly, Britanniawas acquiring a reputation for quality and value. As a result, during thetragic World War II, the Government reposed its trust in Britannia bycontracting it to supply large Quantities of "service biscuits" to thearmed forces.
As time moved on, the biscuit market continued to grow andBritannia grewalong with it. In 1975, the Britannia Biscuit Companytook over the distribution of biscuits from Parry's who till nowdistributed Britannia biscuits in India.
In the subsequent public issue of 1978, Indian shareholding crossed
60%, firmlyestablishing the Indianness of the firm. Britannia BiscuitCompany was re-christened Britannia Industries Limited (BIL). Fouryears later in 1983, it crossed the Rs. 100 crores revenue mark.
On the operations front, the company was making equally dynamicstrides. In
o 1992, it celebrated its Platinum Jubilee. In 1997, the companyunveiled its newcorporate identity - "Eat Healthy, Think Better" -and made its first foray into the dairy products market.
In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified
the affinity consumers had with 'Brand Britannia'. Britannia strode intothe 21st Century as one of India's biggest brands and the preeminentfood brand of the country.
PROFILE
Type publicIndustry FoodFounded 1892Headquarters Kolkata
Key people Nusliwadia (Chairman), Vinita wali (MD)Products Biscuits, Dairy, Bakers and Rusks
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MISSION
To Make Every Third Indian a Britannia Consumer.
The Indian population today is over 1 billion. Of these, economic datasuggests that one third can afford products in the price range that we operatei.e. Re. 1 in case of Tiger Tikki to Rs. 120/- in case of the 1kg Milkman DairyWhitener. The company has to constantly endeavour to capture the entiremarket of this target population. The key to success is once again throughvery high levels of commitment to the roles and the goals of the organization.The company needs to constantly strive to excite the consumer throughwhatever they do.
VISION
To Dominate the Food and Beverage Industry and TripleTurnover and Operating Income.
The vision states that the company not only needs to lead but to dominate theindustry. This implies that the company needs to be the preferred choice ofthe consumer in every product category that it operates in. The preference ofconsumers will come through excellent products and excellent service to thetrade and to the end consumer.
BUSINESS STRUCTURE
This figure describes the Britannias overall Business structure in all the fourmajor regions of the Country. This describes how the four zones areconnected to each other.
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PRODUCTS PROFILE:
Tiger:-
Tiger, launched in 1997, became the largest brand in Britannia'sportfolio in the
very first year of its launch and continues to be so tilltoday. Tiger has grown
from strength to strength and the re-invigoration in June 2005 and more
recently, in Apr 2008 has furtherhelped bolster its growth in the highlycompetitive glucose biscuitcategory.Tiger is a Glucose biscuit, which comes
with the added goodness ofwheat and milk. It is for modern mothers who play
an enabling rolefor their children to compete in today's world and thus want
thebest. Now Tiger Glucose has been fortified with "Iron Zorn" with an
Tiger Coconut: Delicious Coconut Flavored Energy Biscuits,launched in 2000.
Tiger Creams: Was introduced in 2002 at just Rs 5 per pack. TigerCream is
now available in Orange, Elaichi, Chocolate, Pineapple,Strawberry and
Butterscotch flavors, and promises to bring morefun and more energy to
children across the country.
ChotaTiger : Is an extension of brand Tiger launched nationally inMay, 2007.
It is mini sized poppable glucose biscuit with colouredsugar sprinkling. It comes
in two variants: Milk Sparkies and ChocoSparkies
IRON ZOR helps make mind sharper and body stronger. A Rs.4 packhas as
much IRON ZOR as that in 1 kg of Banana.R&D in Britannia has spent
considerable time to develop thisnutritious and delightful snack for
children.Britannia Tiger Banana packed with IRON ZOR and goodness
ofBanana is accessible to all, being available in convenient packspriced at
Rs.2, Rs.4 and Rs.10.
Good Day:
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Britannia Good Day was launched in 1986 in two delectable avatars- Good Day
Cashew and Butter. Over the years, new variants wereintroduced - Good Day
PistaBadam in 1989, Good Day Chocochipsin 2000 and Good Day Choconut in
2004.This rich cookie enjoys a fan following of consumers across all ages,loyal
to the brand promise of a great taste, evident from the visiblyabundant
ingredients. Good Day is among the fastest growingbrands in Britannia's
portfolio and it has been the leader in thecookies category ever since its
launch. The brand is synonymouswith everyday treats that infuse happiness
into people's lives.After two decades of magnificent success; it was time to
give thenation yet another reason to have a good day. Abundance, goodness,
indulgence and now unrestrained joy - that is themessage of this new
campaign.The new TT ad is the uncontrollable expression of the
ticketcollector's happiness and joy that is stimulated by consumption ofthe
cookie, that spreads cheer amongst the people around himcreating an
atmosphere of shared joy that's unorchestrated andstraight from the heart.The celebration was taken to the IPL asGood day cheered along with a million
cricket fans in the stadiums,each screaming and proclaiming "Ho gaya re Good
Day". Thedazzling brilliance of this endeavour, the contagious rhythm needsto
be lived and spread through the nation, making 'Iskatoh hoGaya Re Good
Day' a part of the common lingo and a way of life.Good Day truly believes
laughter and happiness are infectious, ittranscends race, caste creed unifying
humanity in an inclusiveemotion.The brand perseveres to infuse cheer, hearten the nation and enliven lives.
With its rightful place on the front page of The Timesof India, Good Day gifts
the nation a priceless treasure, that ofspreading JOY!
Bourbon:
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Thick, rich and delicious chocolate packed between two crunchychocolate
biscuits, topped with sugar crystals - presenting, theoriginal Bourbon, from the
house of Britannia.India's first and favorite Bourbon's sweet adventure began
in 1955.Since then, Bourbon lovers across the country have been
caughtopening this chocolate couplet, licking the cream, and nibbling atthe
melt-in-your-mouth biscuit, bit by bit. Some have beenwitnessed chomping it
whole, at one go. Some have been noted toalternate it with sips of coffee;others team it with lots of gossip andgupshup, while a few have been observed
enjoying it with a book.And some have been seen reluctantly sharing their
Bourbon.Whatever the occasion, wherever the hangout, Bourbon makes
forgreat company. You can grab your very own Nano Pack or a PocketPack.
The Hangout Pack is just right for chilling with friends. Takealong a Party Pack
for... yes, a party! And the Gift Pack will surelywin you a few brownie points!
RUSK:
Britannia launched its rusks in the year 2005. In a Market full ofunbranded
players, Britannia rusks have stood head and shouldersabove the rest in terms
of sheer quality .They are made from thefinest ingredients and baked with care
as they are twice as crisperas and tastier than ordinary rusks. The
communication for thismouthwatering offering is aptly Enliven your spirits
with Britanniarusks.
Cakes:
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Britannia entered the cake market in the year 1963 and is the leading player
in the market. Britannia Cakes range is divinelyscrumptious and has Bar
Cakes, Chunk Cakes and Cup Cakes whichwere launched in 2005. Bar Cakes
are available in variants thatinclude Fruit, Butter Sponge, Chocolate,
Pineapple, Milk, VanillaChocolate and Orange. Apart from being delicious,
these snacks arepacked with healthy ingredients making them wholesome
&delightful.Britannia cup cakes come in vanilla and orange and mixed
fruitflavors whereas chunk cakes come in fruit flavor.Britannia has recently
launched for the 1st time ever in thepackaged segment Veg Cakes, pure and
eggless. These VegetarianCakes are soft, juicy and filled with real fruit bits
which can beenjoyed just by themselves or mixed with a variety of ingredients
tomake quick, delicious desserts. With zero cholesterol andhygienically
packed for a shelf life of 3 months, they are a morewholesome and healthy
option than other sweet dishes available inthe market.Britannia Veg Cakes
come in Twisty Fruity avatar and are priced atRs 10/- for a 75 gram pack. Theyenjoy a 3 month shelf life.
Marie Gold:
Britannia's oldest brand enjoys a heritage that spans the last 50years - and
going strong. In a market swamped with me-tooproducts and where even the
name 'Marie' has become generic,Britannia Marie Gold has maintained its
stronghold. Today, the ever-popular Marie Gold is synonymous with the 'Tea
Time Biscuit'. Itstaste, crispiness and lightness make it a must for every tea
break. Itis the #1 brand in its category by a long shot.
BRITANNIA 50-50:
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Treat:
As a move to consolidate all the individual Cream Treat offerings under a
single umbrella, Britannia launched Treat in 2002. Treat has a range of tasty
delights for all kids with yummy creamy treasures within the biscuit shells. The
kids have always relished unraveling the irresistibly delicious creams hidden
inside the biscuit Britannia Treat offers a wide variety of flavors, such as the
Elaichi, the Fruit Flavored Creams such as Orange, Pineapple, Mango, and
Strawberry, the Jam Filled Centers under the Jim Jam range, and the Duet
Range (biscuits with two flavours of cream between three layers of biscuit)
comprising Strawberry Vanilla and Duet Strawberry Chocolate.
Britannia Treat has now launched yet another mouthwatering delight under its
umbrella. The delicious Fruit Rollz take the Treat brand beyond the cream
biscuits and provides yet another lip smacking delight to its consumers.
Fruit Rollz are soft rolls filled with the goodness of real fruits, and provide ahealthy yet scrumptious treat to our 'loveable devils' Treat also introduced its
naughty and adorable brand mascot FUNTOOSH whose primary occupation is
mischief FUNTOOSH is the guy who will pull off any trick to make sure he gets to
eat his Britannia Treat.
For all you kids who have relished the yummy treasures of Britannia Treat in
exciting flavors, look out for yet another reason to celebrate!
Britannia Treat launches a new and exciting combination of chocolate and
caramel in a single bar - TREATCHOCO GELO. This unique and never
before product is guaranteed to double the masti and double the fun that you
have with Treat.
So go ahead, open this delicious pack, indulge yourself with Treat ChocoGeloand enjoyYummy ChocolateandGooey Caramelfor "Double Mastika
Double Dose"
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Board of members:-
Name DesignationMr. Nusli Neville Wadia ChairmanMs. Vinita Bali ManagingDirectorMr. A.K.Hirjee DirectorDr. AjaiPuri DirectorMr. Avijit Deb DirectorMr. Jeh N Wadia DirectorMr. KekiDadiseth DirectorMr. Nasser Munjee DirectorMr. Ness NusliWadia DirectorMr. Nimesh N Kampani DirectorMr. PratapKhanna DirectorMr. S.S.Kelkar Director
Dr. Vijay L. Kelkar Director
Corporate Bodies:-
Name DesignationANURADHA NARASIMHAN Category Director - Health & WellnessASHOK KUMAR GUPTA General Manager - Accounts & PlanningGAUTAM BANERJEE General Manager - MaterialsR K AGRAWAL Supply Chain Director for New Business
DevelopmentR. ANAND Business Operations DirectorSHALINI DEGAN Category Director - Delight & LifestyleT S VENKETRAM General Manager - Engineering Projects
& TechnologyVINOD MENON Head - Dairy BusinessBALAJI REDDIPALLI Head ReplenishmentN. VENKATARAMAN General Manager - CommercialSHRIDHAR PANSHIKAR National Sales DirectorKAILASH KAKANI Head of Manufacturing OperationsB. PRASHANTH Head of R&D
Dr. K.N. SHASHIKANTH Head - Corporate QualityVALIVETI V PADMANABHAM Head - Corporate ITP. GOVINDAN Company Secretary & Head of Legal
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MANAGEMENT HIERARCHY:
COMPETITORS:-
Parle Products Pvt. Ltd: Established In 1929, company has factories
in Mumbai, Bangalore, Bahadurgarh in Haryana and Neemrana in
Rajasthan, Additionally, Parle Products also has 7 manufacturing units
and 51 manufacturing units on contract. Company has aboutapproximate market share of 30-35% of the total biscuit market. Parle-
G accounts for the major volume turnover it accounts for approximately
80% of the total biscuit tonnage for the company.
Key Products : Parle - G , Hide and Seek ,Krackjack ,Hide & Seek
Milano ,Magix ,Digestive Marie ,Monaco ,Parle Marie ,Kreams ,Milk
Shakti ,Parle 20-20 Cookies ,Golden arcs ,Nimkin ,Kreams Gold ,Chox
,Monaco Jeera Surya Food & Agro Ltd : Manufacturing & selling of biscuits under
brand Priyagold. Company has three plants located in Greater Noida,
Lucknow&Surat. They also outsource some of our requirements to
another plant located in Hyderabad. Capacities have reached 1, 50,000
MT p.a.
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Key Products : Classic Cream , Butter Bite ,Kids Cream ,Bourbon ,Big
Boss ,Marie Lite ,Magic Gold ,CNC ,Cheese Cracker ,Snacks ZigZag
,Don ,Coconut Crunch ,Cheez Bit Classic Salt ,Chatpata
ITC Ltd: In July 2003, ITC forayed into the Biscuits market with the
Sunfeast range of Glucose, Marie and Cream Biscuits. Sunfeast with a
current market share of ~10% is now clearly established as a credible
third brand.
Key Products : Sunfeast Milky Magic ,Sunfeast Marie Light ,Sunfeast
Golden Bakery ,Sunfeast Dark Fantasy ,Sunfeast Dream Cream
,SunfeastSnacky ,Sunfeast sweet 'n salt ,Sunfeast Nice ,Sunfeast
Benne Vita Flaxseed Biscuits ,Sunfeast Special
Anmol Biscuits Ltd:Anmol is a popular brand of eastern & northern
region, having manufacturing facilities in W.B & U.P.
Key Products : Lemon Mazaa , Funfill Choco Vanilla , Yummy - Milk
Cream , Tip Top KajooKurkure Masala, Coconutty , Thin Arrowroot ,
Marie,2 in 1, Butter
Market share of Britannia:-
Britannia Industries Limited is an Indian company based in Kolkata thatis famous for its Britannia and Tiger brands of biscuit, which are highlyrecognized throughout the country. Britannia is one of Indias leadingbiscuit firms, with an estimated 43% market share.
The Company's principal activity is the manufacture and sale ofbiscuits, bread, rusk, cakes and dairy products.
company Market share (%)
Britannia 43%Parle 37%
Sunfeast 19%Priya gold 11%
anmol 8%others 23%
http://en.wikipedia.org/wiki/Kolkatahttp://en.wikipedia.org/wiki/Ruskhttp://en.wikipedia.org/wiki/Dairy_productshttp://en.wikipedia.org/wiki/Dairy_productshttp://en.wikipedia.org/wiki/Ruskhttp://en.wikipedia.org/wiki/Kolkata -
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SWOT analysis of Britannia:-
(Source: - made by Mr Sangram Kumar Dash)
Highly advertised
brands such as
PARLE. Margin war among
the major Brands. Increase in sale of
cheap local bakery
products.
Retaining loyal
retailers or
wholesalers. BRITANNIA
products in medicalshops.
Improper and
irregular supply. Dependent on its
flagship brand,
Tiger.
Poor packaging in
glucose biscuits.
Lack of schemes for
retailers and
distributors.
Low price Sizeable market share
Variety of products
An experienced team of
sales
Deep and effective
coverage
Largest distribution
system
STRENGTH WEAKNESS
THREATSOPPERTUNITY
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BCG matrix of Britannia:-
Star
Stars have high market shares that operate in growing markets. The product
at this stage should be generating positive returns for the company.
Cash Cow
These are products at the mature stage of the lifecycle, they generate high
amounts of cash for the company, but growth rate is slowing.
Question Mark
These are products with low market share but operate in high market growth
rates. The company puts a lot of resources in this product in the hope that it
will eventually increase market share and generate cash returns in the future.
Dogs
These are products which have low market shares and low market growth
rates. The
options for many companies is to phase these products out, however some
organisation do go for the strategy ofre-inventing and injecting new life into
the product.
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The organizational hierarchy:-
SALES MANAGER
AREA SALES MANAGER
SALES OFFICER
TERRITORY SALES INCHARGE
PIONEER SALES MANAGER (PSM)-not authorised by co.AND
ROUTE SALES ADVISOR (RSA)-for merchandising
Distribution network of Britannia:-
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Achievements of Britannia Industries ltd.:-
1892 -The Genesis - Britannia established with an investment of Rs. 295 inKolkata
1910 - Advent of electricity sees operations mechanised
1921 - Imported machinery introduced; Britannia becomes the first companyeast of the Suez to use gas ovens
1939 - 44
Sales rise exponentially to Rs.16,27,202 in 1939 During 1944 sales ramp up by more than eight times to reach Rs.1.36
crore
1975
Britannia Biscuit Company takes over biscuit distribution from Parry's
1978
Public issue - Indian shareholding crosses 60%
1979
Re-christened Britannia Industries Ltd. (BIL)1983
Sales cross Rs.100 crore
1989
The Executive Office relocated to Bangalore.
1992
BIL celebrates its Platinum Jubilee
1997
Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to newmission: 'Make every third Indian a Britannia consumer'
BIL enters the dairy products market
1999
Britannia Khao World Cup Jao" - a major success! Profit up by 37%
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2000
Forbes Global Ranking - Britannia among Top 300 small companies
2001
BIL ranked one of India's biggest brands No.1 food brand of the country Britannia Lagaan Match: India's most successful promotional activity of the
year Maska Chaska: India's most successful FMCG launch
2002
BIL launches joint venture with Fonterra, the world's second largest dairycompany
Britannia New Zealand Foods Pvt. Ltd. is born Rated as 'One amongst the Top 200 Small Companies of the World' by
Forbes Global Economic Times ranks BIL India's 2nd Most Trusted Brand
2003
'Treat Duet'- most successful launch of the year Britannia Khao World Cup Jao rocks the consumer lives yet again
2004
Britannia accorded the status of being a 'Superbrand' Volumes cross 3,00,000 tons of biscuits
2005
Re-birth of Tiger - 'SwasthKhao, Tiger Ban Jao' becomes the popular chant! The new plant in Uttaranchal, commissioned ahead of schedule.
2006
Britannia acquires 51% stake in Bangalore-based bakery foods retailerDaily Bread.
2007
Britannia industries formed a joint venture with the KhimjiRamdas Groupand acquired a 70 percent beneficial stake in the Dubai-based StrategicFoods International Co.
Britannia NutriChoiceSugarOut range introduced - 1st of its kind of biscuitsto be launched in India with "No Added Sugar.
2009
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Britannia Industries buys out New Zealand's Fonterra from existing dairy
joint venture, Britannia New Zealand Foods (BNZF). BNZF became a 100
per cent Britannia subsidiary and was renamed Britannia Dairy Private
Limited (BDPL).
Recognizing the changing global trends & health benefits of removing
transfats, Britannia is the first Bakery brand in India to remove Trans fats
from its products.
Wadia Group acquired stake holdings from Group Danone and becomes
the single largest shareholder in BIL.
2010
Britannia was presented the Master Brand 2010 Award by CMO Council inNovember 2010.
Rotary Club of Chennai awarded CSR Award to Britannia in November, forour work in nutrition.
2011
Britannia received the Most Respected Company Award 2011 fromBusiness world.
Bourbon received the Most Popular Confectionery Product Preferred By
Youth (Biscuit) Award.
Code of Business Conduct in Britannia:-
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The reputation that Britannia has built over the years for high ethical standardsis one of our greatest business assets. To share the responsibility to preserveand enhance this asset, the company has documented the Code of BusinessConduct (COBC) for its employees.
Responsibilities of Employees of Britannia:
Maintaining ethical standards, including appropriate accountingcontrols;
Identify, surface and resolve ethical issues with great speed; Corporate assets (physical and intellectual) must not be used for
personal benefit;
Workplace Responsibilities:
Being committed to fair employment practices; Being committed to a workplace free from drugs and any kind of
harassment or intimidation of employees;
Representing Britannia to Customers and Other ExternalConstituencies:
Treating customers, suppliers and competitors fairly; Maintaining high standards of quality; Speeches, media interviews, and other public appearances in
connection with Britannia must first be approved internally;
Privacy / Confidentiality:
Protect proprietary and confidential information at all times inaccordance with applicable law;
Keep employees' information confidential
Investments and Outside Activities:
Trading in the securities of Britannia or any other company while in
possession of "inside" information is illegal;
Avoiding real or perceived conflicts of interest in areas including
investments or outside business activities, among others.
Corporate Social Responsibility:
Catering to the national interest Committed to be a good corporate citizen The company prohibits any payment of bribes.
LITERATURE REVIEW:-
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Digital Displays and Experiential
Marketing
By: James Barry(source-http://www.isnare.com/?aid=226250&ca=Marketing)
Experiential marketing is achieved by creating an in-store experience that
differs from the competition. The theory is that your unique store environment
will draw traffic and keep customers coming back. Digital displays have
proven to be a highly effective tool for this type of marketing.
A lot of research has gone into determining what makes a good in-storeexperience. Retailers who succeed in creating a positive experience for their
customers focus on the needs of the customers:
Make it quick and easy to find what they are looking for.
Answer a question and provide information to solve a problem for the
customer.
Compel customers to visit your store often.
Popup Display Design Tips and Tricks
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By: Rick Hendershot (source-http://www.articlesbase.com/marketing-articles)
A Popup Display normally covers the entire back "wall" of your space. This
means that a properly designed Popup Display provides you the opportunityto make a bold statement about your company and your most important
product or service.
A Popup Display not only serves as a backdrop to your display, but gives your
area definition, and allows you to focus attention on a specific image.
Well-designed popup displays make a powerful statement about your productor service.
Of course it is possible just to throw the popup up against the back wall, stick
a table in front of it, spread out your brochures, and away you go. But you can
do better than that. Pay special attention to the space requirements and the
specifications of your popup display, and then design your space around it.
Maximize the dramatic impact of the design
Focus on your "Primary Product Message
Use a slogan
Use simple, bold graphics
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Shoestring Merchandising Tips for Retail
Store Display
By: - Melanie McIntosh
Upgrade lighting whenever you can. Retail store windows especially
need to be well lit.
An inexpensive can of paint can be used to paint your fixtures to
match, or touch up chips and keep things looking new.
Fabric and paper are two valuable display helpers. Use them under orbehind a display to provide a backdrop, use a scarf to add colour and
movement to a static arrangement.
Use magazines as a source of ideas for displays. Find time to go to the
library so you can browse for free.
Take a seminar or spend a couple of hours with a retail consultant to
learn some display and merchandising techniques.
Pretend you are a customer and take a look at your storefront. Try tosee the store as the customer would see it.
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Chapteriii
Research Methodology
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Method of data collection:-
Systematic and scientific method of collecting new information called as
research methodology.
The study is relied on primary as well as secondary data.The primary data is collected through personal interviews using structured
Questionnaire.
The Secondary is collected from management of the Britannia Industries Ltd,
various books,journals and Internet.
Sample:-
The sample represents a subset of manageable size. Samples are collectedand statistics are calculated from the samples so that one can makeinferences orextrapolations from the sample to the population.
This process of collecting information from a sample is referred to assampling.
The best way to avoid a biased or unrepresentative sample is to select arandom sample, also known as a probability sample.
Objective of the study:-
All companies are having their own planning and business strategies but the
company who ishaving the best, is the most successful company among its
competitors. So the company can getsuccess within its competitors by
applying best and effective marketing strategies.
To identify the visualize merchandising and product image in market.
To know the offers to customer, retail outlets and competitors offer
given to customer retail outlets.
To know the impact of merchandising.
To know the brand preferences by the customers.
To track the sales in the particular beat.
http://en.wikipedia.org/wiki/Inferencehttp://en.wikipedia.org/wiki/Extrapolationhttp://en.wikipedia.org/wiki/Sampling_%28statistics%29http://en.wikipedia.org/wiki/Random_samplehttp://en.wikipedia.org/wiki/Random_samplehttp://en.wikipedia.org/wiki/Sampling_%28statistics%29http://en.wikipedia.org/wiki/Extrapolationhttp://en.wikipedia.org/wiki/Inference -
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Data collection:-
Personal interaction with company guide.
Personal interaction with retail outlets and modern stores.
Discussion with other officials.
Questionnaires, Surveys and suggestions
Primary Data collected through Direct Observation for sales
Tracking in Britannia:-
As per the sales track I had gone through a direct observation on thebeats underSAI PRIYA DISTRIBUTERS, ALWAL a distributer under
Britannia industries LTD. I have covered 10 beats under that distributer.
Route map of those 10 beats
Map-3.1
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Sales tracking in those beats:-
Beat name Pre
merchandising
sales
Post
merchandising
sales
Increase Decrease
Kompally 38720 42260 3540
Gedimetla 31680 29920 1760
West
venkatpuram
33460 34130 670
Old bowenpally 43890 47610 3720
New bowenpally 41560 36610 4950
Sikh village 25530 34290 8760
karkhanna 28230 31360 3130
Tirumalghery 36810 34920 1890
Lothkunta 19250 22530 3280
Picket mahendra
hill
14590 16330 1740
Total 313720 330590 16870
Tab 3.1
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Fig-3.1
In the above graph it clearly shows about the increase and decrease of
sales of Britannia products in respective beats.
As we see the graph there are 10 beats in which the sales of Britannia
increased in 7 beats whereas the sales also decreased in 3 beats. The sales increases due to the effect of merchandising work done in
those particular beats.
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
efect of merchandising on sales
Pre merchandising sales
Post merchandising sales
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Fig-3.2
In the above graph we see the total sales increased in those beats.
The pre merchandising sales was RS. 313720 but after merchandising
the sales is RS. 330590. The total increase in sales is RS. 16870 which is approximately 5.6%.
Total pre merchandising sales Total post merchandising sales
Series1 313720 330590
305000
310000
315000
320000
325000
330000
335000
AxisTitle
increase in sales
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Snap shots during merchandising:-
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Chapter 4
Data collection/Analysis &
Interpretation
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Research in FMCG is very essential, as customer preferences and choices
are dynamic and change frequently, the FMCG Company needs to
understand these before redesigning its processes forenhancing business
and many more. Since customer interaction takes place at the store and
nearstore, there is a big opportunity to gather first-hand information and
feedback from customersthrough research and survey. Research is carried
out at the FMCG retail level for concept testing,business feasibility analysis,
identification of the effect of merchandising, customer needs, activities of
competitors etc.
Collection of primary data:-
As per the survey I have designed the sample as follows:-
I have selected the units for my survey was the retail outlets which
include large kiranas, small kiranas and bakeries.
The sample size is 100.
The method I have used is simple random sampling.
For the analysis I have selected 8 questions, these are as follows:-
Do you purchase biscuit for your shop?
Which brand you would like to purchase more in quantity?
What influenced your decision to purchase a Britannia biscuit?
According to merchandizing which brand do you think is the toughest
competitor to Britannia?
Does merchandizing increase the sales of Britannia?
Which type of merchandising activity do you like most?
According to you which shelf-space for Britannia products does create
maximum impact in the customers mind?
What do you think about the merchandizing activity of Britannia?
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Do you purchase biscuit for your shop?
Tab 3.1
Options ResponsesYes 100No 0
On the basis of the above respondents, it is to be interpreted the graph (3.1)
shows that out of 100 respondents 100 retail stores purchase biscuit i.e.
100%.
0
20
40
60
80
100
120
Yes No
fig-3.1
Response
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Which brand you would like to purchase more in quantity?
Tab-3.2
company Responses
Britannia 68
Parle 20
ITC 8
Cadbury Oreo 4
On the basis of the respondent, it is to be interpreted the graph (3.2) shows
that out of 100 respondents maximum outlets are willing to buy Britannia
biscuits in more quantity and after Britannia they are giving priority to Parle
and others.
68%
20%
8%
4%
Response
Britannia Parle ITC Cadbury Oreo
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What influenced your decision to purchase a Britannia biscuit?
Tab-3.3
factors Response
Demand by consumer - 36
Brand name and reliability 41
Quality- 15
Advertisement (merchandising)- 8
On the basis of the respondent, it is to be interpreted the above graph(3.3)
shows that maximum respondent buy Britannia due to the brand name i.e.
41% and then 36% respondent buy due to demand by customers and rest of
them buy 15% due to quality and 8% due to merchandising.
36%
41%
15%
8%
fig- 3.3
a- Demand by consumer -
b- Brand name and reliability
c- Quality-
d -Advertisement
(merchandising)-
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According to merchandizing which brand do you think is the toughest
competitor to Britannia?
Tab-3.4
competitor Response
Parle-g 32
ITC 27
Cadbury Oreo 39
Mcvite 2
As per the respondents, it is to be interpreted the above graph (3.4) shows
that the Cadbury Oreo is the most competitor of Britannia according to
merchandising i.e.39% after it Parle is also the second competitor which kept
32% according to the respondent.
32%
27%
39%
2%
fig-3.4
Parle-g
ITC
Cadbury Oreo
Mcvite
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Does merchandizing increase the sales of Britannia?
Tab-3.5
factors responses
Strongly agree 70
agree 25
Disagree 5strongly disagree 0
As per the respondents, it is to be interpreted the above graph (3.5) showsthat
maximum numbers of respondent i.e. 70% are strongly agreed that
merchandising increases the sales of Britannia whereas no single respondent
strongly disagree in this case.
70%
25%
5% 0%
fig-3.5
Strongly agree
agree
Disagree
strongly disagree
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Which type of merchandising activity do you like most?
Tab- 3.6
Types of activity Responses
Full set (danglers, suspenders,stickers, posters, tape, baskets andbanners)
69
Medium set (danglers, stickers andposters)
26
Low set (posters and stickers) 5
As per the respondents, it is to be interpreted the above graph shows(3.6) that
maximum number of respondent like to full set of merchandising i.e. 69% and
26% respondent like medium set and rest 5% like low set of merchandising.
Full set (danglers,
suspenders,
stickers, posters,
tape, baskets and
banners)
69%
Medium set
(danglers, stickers
and posters)
26%
Low set (posters
and stickers)
5%
fig 3.6
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According to you which shelf-space for Britannia products does create
maximum impact in the customers mind?
Tab- 3.7
Types of space Responses
Front shelf-space (Point of Purchase) 82
Side shelf rack 15
Back shelf rack 3
As per the respondents, it is to be interpreted the above graph(3.7) shows thatthe maximum respondent i.e. 82% like to keep Britannia biscuit in front shelf ,15% respondent like to keep in side shelf and only 3% respondent like to keep
in back shelf.
82%
15%
3%
fig- 3.7
Front shelf-space (Point ofPurchase)
Side shelf rack
Back shelf rack
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What do you think about the merchandizing activity of Britannia?
Tab- 3.8
factors Responses
Impressive 25
Satisfactory 67
Unsatisfactory 8
As per the respondents, it is to be interpreted the above graph(3.8) shows thatmaximum respondent i.e. 67% satisfy whereas 25% respondent thoughtimpressive and rest 5% thought that unsatisfactory.
25%
67%
8%
fig- 3.8
Impressive
Satisfactory
Unsatisfactory
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Chapter-vFindings, suggestions
and conclusions
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Findings of the study:-
Here it is found that in the current market scenario every FMCG retail
outlet is keeping biscuits in their shops in the ratio of 1:0.
According to the brand preference the outlets are willing to purchaseBritannia biscuits in more quantity as compared to others whereas
Parle, ITC and Cadbury Oreo have a smaller brand impact in the ratio
of 6.8:2:0.8:0.4.
If we see the influence factor then we can found that outlets are willing
to buy Britannia biscuits due to the brand name and then after for
customer demand whereas quality influences little beat at last
merchandising come to their mind. According to the competition of merchandising, Cadbury Oreo is the
toughest competitor of Britannia. Parle and ITC sun feast are also
creating very good competition in this run but mcvite has so less
competition in the ratio of 3.2:2.7:3.9:0.2.
Merchandising can use as a tool to increase the off take off a company
because maximum respondents strongly agreed and many respondent
agreed that it may increase the sales whereas no body disagreed inthe ratio of 14:5:1:0.
Then according to the merchandising activity maximum outlets like to
use full set merchandising as compared to medium set and low set in
the ratio of 6.9:2.6:0.5.
According to the shelf space it is found that front shelf is meant to
create maximum impact in the customers mind as compared to side
shelf-space and back shelf-space in the ratio of 8.2:1.5:0.3. Regarding to the merchandising activity of Britannia it is not so
impressive but according to maximum respondent it is satisfactory at
the same time it is not so unsatisfactory in the ratio of 2.5:6.7:0.8.
Cadbury Oreo merchandise is best accepted as up-to-date one and
thus it is competing with Britannia in this field of biscuit.
Customers are considered as the blood life of any business in todays
scenario. Making one customer delight will give us another newcustomer.
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Parle is giving the best customers service and stands first among its
competitors. It maintains its CRM very effectively and efficiently.
ITC sunfeasthas a good visual merchandising among its all 4
competitors. Creating awareness through Internet or through Audio/ visual or
through Print media is best done by Cadbury Oreo.
According to the variety of product (product lines) Parle is competing
with Britannia in this respect.
Distribution is regarded as one of the important factor in FMCG
industry; here in my study Parle has a good distribution network than
Britannia.
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Recommendations:-
The merchandise should be up to date and should create impulse in
the mind of customer.
More efficient and effective Invest in distribution network.
It should take steps to create more outlets by offering, Catchy &
Intelligent schemes.
The attitude of salesman with the retail outlet owners must be helping
& communication in formal way.
Exchange Policies of biscuits due to expiry or damage should be
properly communicated to customers during Sale.
The salesman appointed by the company must literate and should
have convincing power.
The merchandise activity should be entertained in every outlet not only
to key outlets.
Trained merchandisers should be appointed.
As the technology is growing day by day so the merchandise tool
should provide according to the technology.
Advertisement through wall Prints; Internet and Audio/ visual media
should be increase for Britannia.
The relation of distributor with the performance coach should be good
and the relation of pc with the salesman should be good enough.
The sales man should follow the 7 steps of PDA while taking order.
The company should appoint merchandiser under every distributer to
increase in off take of the company.
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Conclusion:-
After going thick on the thing, now time is to make a complete
picture,whilemaking a product a SKU of the shop retailers think about the
customer needs and they promote the brandwhich provides them highest
satisfaction.
They expect return in the form of profit margin,company schemes, window
display and references of the shop. Among these,company schemes make
the differences and are the highest source of motivationafter profit margin.
FMCG retailing demands a constant push from the company, marketers need
to use advertising and brand building strategies to address thediscerning
buyers and retail push to in different buyers.The manufacturer shouldunderstand consumer behaviour because retailers
can't help quality and price. It isonly up to dealers said it is demand they sell
Britannia that at retailshop it is brand popularity, which determine the
purchase of biscuit.There is a greater need to understand the retailer
behaviour considering them as ateam working for the company may help
them to be attached to the company.There should be feeling of belonging to
the company in inner of the retailers.Setting values club for retailers so that they may exchange views with
thecompany and help in understanding consumer behaviour.
FMCG retailing in India is surely poised for a takeoff and will provide many
opportunities both to existing players as well as new entrants.
The country is witnessing a period of boom in FMCG, mainly on account of a
gradual increase in the disposable incomes of the middle and upper-middle
class households as well as the outlets are willing to engage more and more
amount for creating their image in the current market.
More and more corporate houses including large real estate companies are
coming into the retail business, directly or indirectly, in the form of mall and
shopping center builders and managers.
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Bibliography
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BIBLIOGRAPHY
BOOKS:-
Marketing Management. ----Kotler & Keller
Research methodology --- PEARSON
MAGZINES:-
Business worlds
Indian FMCG
India today
Websites:-
www.goggle.com
http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-
in-images-
www.aboutus.com
www.businessworld.in
www.epaper.timesofindia.com
http://www.ibmabiscuits.in
http://foodbizdaily.com/articles/32688-news-biscuit-industry-inindia
www.britannia.co.in
http://www.naukrihub.com/india/fmcg/top-companies/
http://www.goggle.com/http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-in-images-http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-in-images-http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-in-images-http://www.aboutus.com/http://www.businessworld.in/http://www.epaper.timesofindia.com/http://www.ibmabiscuits.in/http://foodbizdaily.com/articles/32688-news-biscuit-industry-inindiahttp://foodbizdaily.com/articles/32688-news-biscuit-industry-inindiahttp://www.ibmabiscuits.in/http://www.epaper.timesofindia.com/http://www.businessworld.in/http://www.aboutus.com/http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-in-images-http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-article-in-images-http://www.goggle.com/ -
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SAMPLE QUESTIONNAIRE:
Dear Sir/Madam,
As a part of PGDM course in VishwaVishwani Institute of System and Management, we aredoing a project on impacts of visual merchandising on the products of Britannia industriesLTD, Please give your valuable inputs for this project by filling up the following form whichwould take around 03 minutes of your time. The data collected only for academic purpose andwe ensure full confidentiality of the data provided by you.
Your time and response is really appreciated. (Please do tick only in one option)
Do you purchase biscuit for your shop?
Yes. ( ) No. ( )
Which brand you would like to purchase more in quantity?
Britannia () Parle ( ) ITC () Cadbury Oreo ( )
What influenced your decision to purchase a Britannia biscuit?
a- Demand by consumer ( ), b- Brand name and reliability ( ),
c- Quality-( ) d -Advertisement (merchandising)-( )
According to merchandizing which brand do you think is the toughest competitor toBritannia?
Parle-G ( ) ITC Biscuits ( ) Cadbury ( ) Mcvite ( )
Does merchandizing increase the sales of Britannia?
Strongly agree ( ), agree ( ), Disagree ( ), strongly disagree ( )
Which type of merchandising activity do you like most?
Full set (danglers, suspenders, stickers, posters, tape, baskets and banners) - ( )
Medium set (danglers, stickers and posters) - ( )
Low set (posters and stickers)-( )
According to you which shelf-space for Britannia products does create maximumimpact in the customers mind?
A-Front shelf-space (Point of Purchase) ( ), B- Side shelf rack-( ), C-Back shelf rack ( )
What do you think about the merchandizing activity of Britannia?
A-Impressive( ), B- Satisfactory- ( ), C- Unsatisfactory ( )
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Outlet Name:Thank you for your Valuable input.