“to analyze retailers experience of selling schmitten as a brand of chocolate”

A

SUMMER INTERNSHIP PROJECTON

“TO ANALYZE RETAILERS EXPERIENCE OF SELLING SCHMITTEN AS A BRAND OF CHOCOLATE”

Submitted to

S.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE

REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

In

Gujarat Technological UniversityUNDER THE GUIDANCE OF

Faculty Guide: Company Guide:

Mr. Harshesh Patel Mr. Alpesh Balar

Assistant Professor Executive marketing

(Rajhans Nutriments pvt.ltd)

Submitted byMs. Ami Patel [Batch No. 2014-16, Enrollment No.148050592044]

MBA SEMESTER III

S.R. LUTHRA INSTITUTE OF MANAGEMENT – 805MBA PROGRAMME

Affiliated to Gujarat Technological University

Ahmedabad

August, 2015

Student’s Declaration

I, Ms. Ami Patel, hereby declare that the report for Summer Internship Project

entitled “To Analyze Retailers Experience of Selling Schmitten as a Brand of Chocolate” is a result of my own work and my indebtedness to other work

publications, references, if any, have been duly acknowledged.

Place: Surat

Date: ____________

___________________

(Ami Patel)

Institute’s Certificate

Certified that this Summer Internship Project Report Titled “To analyze retailers’ experience of selling Schmitten as a brand of chocolate” is the

bonafide work of Ms. Ami Patel (Enrollment No.148050592044), who has

carried out the research under my supervision. I also certify further, that to the

best of my knowledge the work reported here in does not form part of any

other project report or dissertation on the basis of which a degree or award

was conferred on an earlier occasion on this or any other candidate.

Place: Surat

Date: ________________

___________________

(Harshesh Patel)

Asst. Professor

___________________

(J. M. Kapadia)

Director

PREFACE

I received my training at Rajhans (Desai and Jain) Group, Surat as a

requirement of MBA curriculum. This training has provided me a clear insight

of the application of theoretical knowledge into practical scenario. To target

the respondent, it is imperative to understand their mind set and preference

toward the selling Schmitten.

The Research topic is to analyze retailers’ experience of selling Schmitten as

a brand of chocolate.

From 8 June 2015 to 18 July 2015 this Research has been conducted by me.

Objectives of the study are: to analyze retailer experience of selling Schmitten

as a brand of chocolate, to do comparative study of Schmitten with other

brands of chocolates, to know retailer’s preference of selling brands of

chocolates, to know reasons why retailers are not selling Schmitten as a

brand of chocolate.

In this research first the analysis of the confectionary industry at global,

National, and state level Scenario, then PESTLE analysis done of

confectionary industry. Secondly, Micro analysis related to company and

organization structure has been done. Literature review has been done

regarding Chocolates, bands, retailer, etc…

Conclusion of the study revealed that most of the retailers selling experience

are neutral for selling schmitten brand; most of the respondents under study

are selling Cadbury in their store, while some of the respondents are not

selling schmitten because of some issues attached with the product.

ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible

without the kind support and help of many individuals and organizations. I

would like to extend my sincere thanks to all of them.

I am highly indebted to Mr. Alpesh Balar for his guidance and constant

supervision as well as for providing necessary information regarding the

project & also for his support in completing the project.

I would like to express my gratitude towards Mr. Harshesh Patel, mentor at

institute & member of Rajhans group for their kind co-operation and

encouragement which help me in completion of this project.

I would like to express my special gratitude and thanks to industry persons for

giving me such attention and time.

My thanks and appreciations also go to my friends in developing the project

and people who have willingly helped me out with their abilities.

EXECUTIVE SUMMARY

This research is focused on “To Analyze Retailers Experience of Selling Schmitten As a Brand of Chocolate.” It also helps to know what are the

factors which affect the retailers who are selling Schmitten and how is their

experience for selling schmitten brand to their customers.

Introduction covers the theoretical aspects on schmitten brand and

confectionery goods. It also covers various brands of chocolate, top selling

brands, sales forecast and also brief about history of confectionery industry.

The project includes the overview of confectionary industry is delicacies or

sweetmeats that have sugar as a principal ingredient, combined with coloring

matter and flavoring and often with fruit or nuts. The global confectionery

industry revenue is estimated to reach $176 billion by 2018 with a CAGR of

3.0% over the next five years (2013-2018). Confectionery in India is broadly

classified as chocolate based confectionery, sugar based confectionery and

gum based confectionery. Confectionery sector in India is well consolidated

with top players holding a major share of the market; local subsidiaries of

global confectioners are among the leading players in India. Large players

have a significant presence in chocolate confectionery market while smaller

players primarily operate at a regional level and have sizeable base in sugar-

based confectionery market

It includes the overview of the company. The Rajhans group of companies

was started in 1990. This chapter also the market Poisson like Over the past

year they have captured 2% of the luxury chocolate segment The sales have

grown by more than 50% over the past quarter.

It includes literature reviews which are referred for the research study.

Literature reviews are the previous study conducted by the other researcher.

It further describes the research methodology that researcher had used for

the purpose of this research. This includes problem statement, research

objectives and research design. The research design has used is descriptive

research design and non-probabilistic convenience sampling method has

used for the research.

Data collection method used was personal survey method in which

questionnaire is used as data collection tool. The sample size was 100

respondents i.e. retailers of surat. Further project includes finding, conclusion

and suggestion on the basis of data analysis.

For data analysis frequency distribution and chi-square independence test

has used for knowing the relationship between various variables.

Findings of the study revealed that most of the retailers are aware of

schmitten but some of them are not selling schmitten because of it packaging,

price, margin structure, distribution network etc. Conclusion of the study

revealed that most of the retailers selling experience are neutral for selling

schmitten brand, most of the respondents under study are selling Cadbury in

their store, while some of the respondents are not selling schmitten because

of some issues attached with the product.

TABLE OF CONTENTS

Sr. No.

Particulars Page No.

1. Introduction 12. Confectionary Industry Profile 5

a. Globalb. Nationalc. Stated. Current trendse. PESTEL f. Major Playersg. Major Offerings

67910111313

3. Rajhans (Desai & Jain Group) Profile 15a. Company Profileb. Organogramc. Divisions/ Departmentsd. SWOTe. Market Position

1619192324

4. Review of Literature 265. Research Methodology 30

a. Problem Statementb. Research Objectivec. Research Design

i. Type of Designd. Sampling Plane. Sources of Data f. Data Collection Methodg. Data Collection Toolh. Hypothesis Testingi. Tools for Analysisj. Limitations of the Study

303030

30313131313232

6. Data Analysis & Interpretations 337 Findings 518 Conclusion 539 Recommendations 54

Bibliography Annexure

LIST OF TABLE

Sr. No. Particulars Table

No.Page No.

1 Major Players 2.1 13

2 Milestones 3.1 23

3 Tenure of Store 6.1 33

4 Brands of chocolates 6.2 34

5 Have you ever sold Schmitten chocolate 6.3 35

6 Experience of selling Schmitten chocolate 6.4 36

7 Comparison with the available brands of chocolate 6.5 37

8 Preference to sell among customer 6.6 38

9 Over all experience of selling Schmitten 6.7 39

10 associated with the Schmitten brand 6.8 40

11 sell other product of Schmitten 6.9 41

12 recommend others to sell Schmitten 6.10 42

13 (A) Scope of improvement

(B) Area of improvement6.11

43

44

14 Reasons for not sold Schmitten yet 6.12 45

15 If issue solved, will you sell Schmitten? 6.13 46

16 Executive from Schmitten 6.14 47

17 Observed and Expected Frequency 6.15 48

18 Observed N and Expected N Frequency 6.16 48

19 Chi- Square Test 6.17 48

20 Observed N and Expected N Frequency 6.18 49

21 Area 6.19 49


23 Observed and Expected Frequency 6.21 50

24 Store 6.22 50


LIST OF FIGURE

Sr. No. Particulars Figure

no.Page no.

1 Top chocolate confectioneries in India 1.1 2

2 Top chocolate brands 1.2 3

3 Top selling chocolate type 1.3 3

4 Most popular categories 1.4 4

5 Sales forecast of most popular categories 1.5 4

6 Schmitten chocolate photos 3.1 20

7 Brand Ambassador of Schmitten Chocolate 3.2 21

8 Variety of Schmitten chocolate 3.3 22

9 Varieties of Hoppits 3.4 22

10 Schmitten chocolate today 3.5 24

11 Tenure of Store 6.1 33

12 Brands of chocolates 6.2 34

13 Have you ever sold Schmitten chocolate 6.3 35

14 Experience of selling Schmitten chocolate 6.4 36

15 Comparison with the available brands of chocolate 6.5 37

16 Preference to sell among customer 6.6 38

17 Over all experience of selling Schmitten 6.7 39

18 associated with the Schmitten brand 6.8 40

19 sell other product of Schmitten 6.9 41

20 recommend others to sell Schmitten 6.10 42

21 (A) Scope of improvement

(B) Area of improvement6.11

43

44

22 Reasons for not sold Schmitten yet 6.12 45

23 If issue solved, will you sell Schmitten? 6.13 46

24 Executive from Schmitten 6.14 47

CHAPTER1

INTRODUCTION

INTRODUCTION

A chocolate fantasy, like never before, Schmitten has been crafted with

immense care. It’s not just about the world-class Swiss technology or the

consistent taste. It’s not even about the unmatched quality that every tablet of

Schmitten comes with. It’s all about the personal touch that each bite, each

tablet of your favorite Schmitten offers.

An experienced & inventive team works on making the chocolate a delight for

your senses. Not one stone is left unturned when it comes to the machinery

used, maintaining the process parameters, the raw materials and finally, the

classy packaging.

All this, to ensure that each Schmitten makes you want to immerse yourself

into a fantasy world of your own.

Higher disposable incomes and a taste for richer chocolates are ensuring a

steady growth of the premium chocolate market in India. At 10 per cent of the

overall Rs 5,000-crore chocolate market, the premium segment is small. Yet,

it is growing at a steady 30-40 per cent per annum, according to industry

estimates. Consumption is likely to grow by 25 per cent annually and cross Rs

7,500 crore by 2017. Premium refers to those products whose average price

is Rs 100 and above. Quite a few chocolates fall in this segment, including

brands such as Lindt, Ferrero, Godiva, Mars, etc. Mostly imported and

distributed in the country, some of them such as Ferrero are going a step

further, by setting up local manufacturing facilities. Ferrero recently

announced it was setting up its second manufacturing plant in the country

through its wholly-owned subsidiary, Imsofer Manufacturing. The unit would

be located in Maharashtra, near its first one, which is near Pune. Moreover

during festivals which are an occasion when sales of premium chocolates are

seeing a spurt, mainly because of their ability to be fine gifting options. Also,

premium chocolate makers are keen to initiate more consumers into the habit

of having their products.

In 2014, India’s chocolates sales are estimated to have crossed the Rs10,000

crore ($1.6 billion) mark, according to a report by market analyst Euromonitor,

growing a solid 24% over the preceding year. And the leader of India’s

chocolate pack, by far, was Mondelez India (as Cadbury India is now called)

Figure No: 1.1 Top chocolate confectioneries in India

with a 55.5% share of the market. Nestle India, its nearest rival, recorded the

fastest decline in marketshare. From 19% in 2013, its share fell to 17% in

2014 on the back of slow sales of its key brands, such as Munch and Bar

One.

Favorites brands:

Almost half of Mondelez India’s brands—including Dairy Milk, 5 Star, Gems,

Perk and Toblerone—were among the 15 highest selling chocolates in 2014.

Much of that was because these brands are being sold in smaller units, priced

at just Rs5 ($0.08), which helps them reach deeper into rural areas and Tier-

III cities, where affordability is key. At the top of the economic pyramid,

premium chocolates—such as Lindt and Mars—available in urban retail stores

and supermarkets also drove growth in 2014. But the demand for premium

chocolates is not dominated by children, instead it’s a particularly adult

craving. And chocolate companies are taking this growing market seriously.

Both Mondelez and Nestle sell Toblerone and Alpino, respectively, in smaller

Figure No: 1.2 top chocolate brands

packs to encourage new customers to try their chocolates.

Dark, White or Milk

Despite all the newfound love for expensive foreign brands, the plain milk

chocolate tablets remain the undisputed king in India with a value share of

60%. Meanwhile, there’s a serious fight underway between white and dark

chocolates, which the latter seems to be winning currently. And right on cue,

both Mondelez and Nestle launched new dark chocolates in the last two

years.

Figure No: 1.3 Top selling Chocolate types

In India’s booming chocolate market aren’t black, white or milk. Instead,

chocolates with toys (such as Kinder Joy) have caught the attention of young

Indian consumers. From sales of only around Rs66 crore in 2009, the number

has grown 15 times to Rs1, 007.5 crore in 2014. And these chocolates now

Figure No: 1.4 Most Popular categories

comprise the third biggest segment in value terms. The overall market,

however, is dominated by chocolate tablets and count lines, which are boxes

of bars packed and supplied to retailers to be sold individually.

Delicious forecast

Out of the three most popular categories in 2014, count lines are expected to

be the fastest growing segment in the next few years—with a 87% growth in

value by 2019. Boxed assortments and chocolates with toys will follow, with a

Figure No: 1.5Sales forecast of most popular categories

growth by over 68% between 2014 and 2019. Still, with Rs6,905.98 crore in sales, tablets with continue to dominate India’s chocolate market in terms of value.

Confectionery, delicacies or sweetmeats that have sugar as a principal

ingredient, combined with coloring matter and flavoring and often with fruit or

nuts. In the United States it is usually called candy, in Great Britain, sweets or

boiled sweets. Non-chocolate candy is roughly divided into two classes, hard

and soft; the distinction is based on the fact that sugar when boiled passes

through definite stages during the process of crystallization. Fondant, or sugar

cooked to the soft stage, is the basis of most fancy candies, such as

chocolate creams.

Sweetmeats, long known in the Middle East and Asia and to the ancient

Egyptians, were at first preserved or candied fruits, probably made with

honey. One of the earliest functions of candy was to disguise unpleasant

medicine, and prior to the 14th cent. Confections were sold chiefly by

physicians. Medieval physicians often used for this purpose sugarplate, a

sweetmeat made of gum dragon, white sugar, and rosewater, beaten into a

paste. One of the earliest confections still surviving is marzipan, known

throughout Europe; it is made of almonds or other nuts, pounded to a paste

and blended with sugar and white of egg. In the Middle Ages it was

sometimes molded into fancy shapes and stamped with epigrams.

Sugarplums, made of boiled sugar, were known in England in the 17th cent.,

but it was not until the 19th cent. that candymaking became extensive. The

display of British boiled sweets at the national exhibition of 1851 stimulated

manufacture in other countries, especially in France. In the United States in

the middle of the 19th century about 380 small factories were making

lozenges, jujube paste, and stick candy, but most fine candy was imported.

With the development of modern machinery and the increasing abundance of

sugar, confectionery making became an important industry. In 2001,

estimated retail sales of chocolate, other candy, and gum in the United States

had reached $24 billion, and more 1,400 new items of candy were introduced.

CHAPTER

2CONFECTIONARY

INDUSTRY PROFILE

CONFECTIONARY INDUSTRY AT GLOBAL LEVEL

The global confectionery industry revenue is estimated to reach $176 billion

by 2018 with a CAGR of 3.0% over the next five years (2013-2018). Rising

disposable income, increasing awareness of health and wellness, higher

population, and consumer spending are the major industry drivers.

Lucintel, a leading global management consulting and market research firm,

has analyzed the global confectionery industry and presents its findings in

“Global Confectionery Industry 2013-2018: Trend, Profit, and Forecast

Analysis.” The industry consists of sales of chocolate confectionery, sugar

confectionery, gum, cereal bars, and other confectionery. Europe has the

highest regional share among all the regions. Asia Pacific (APAC) emerged

as the most growth potential region over 2007-2012, driven by growing

population and GDP growth in developing nations. A combination of factors

such as rising population and consumer spending affects market dynamics

significantly.

As per the study, introduction of confectionery categories and new product

variants of different tastes are ensuring higher acceptability of these products.

Increasing urbanization, hectic lifestyles, and more women in the workforce

globally are increasing the demand for confectionery food. The biggest

challenges for the industry include health issues, as well as inflation,

employment rate, increasing government regulation, and changing consumer

preferences, among others. The chocolate segment is forecast to witness the

highest growth during 2013-2018. Special occasions and celebrations are

expected to increase confectionery sales.

This study provides an overview of the global confectionery industry, tracking

three market segments of that industry in four geographic regions. Thus, a

total of 12 segments of the global confectionery industry are tracked. The

report studies the manufacturers of chocolate confectionery, sugar

confectionery, and gum, cereal bars and other confectionery. It provides a

five-year annual trend and forecast analysis that highlights market size, profit,

and cost structure as well as opportunities for the regions of North America,

Europe, APAC, and Rest of the World. This comprehensive guide from

Lucintel provides readers with valuable information and the tools needed to

successfully drive critical business decisions with a thorough understanding of

the market's potential. This report will save Lucintel clients hundreds of hours

in personal research time on a global market and it offers significant benefits

in expanding business opportunities throughout the global Confectionery

industry analysis. In a fast-paced ever-changing world, business leaders need

every advantage available to them in a timely manner to drive change in the

market and to stay ahead of their competition. This report provides business

leaders with a keen advantage in this regard by making them aware of

emerging trends and demand requirements on an annual basis.

CONFECTIONARY INDUSTRY AT NATIONAL LEVEL

Indian confectionery market mirrors its global counterpart with a well-

entrenched presence of multinational companies, wide portfolio of brands,

frequent product launches, intense marketing and advertisement campaigns.

Consumption of confectionery products is not restricted to children anymore.

Adults have opened up to consumption of confectionery in a big way. Several

companies are launching confectionery products targeting adults.

Confectionery in India is broadly classified as chocolate based confectionery,

sugar based confectionery and gum based confectionery. The categories are

further classified as follows:

Confectionery sector in India is well consolidated with top players holding a

major share of the market; local subsidiaries of global confectioners are

among the leading players in India. Large players have a significant presence

in chocolate confectionery market while smaller players primarily operate at a

regional level and have sizeable base in sugar-based confectionery market

The Indian confectionery market was valued at around INR 95 billion in 2012-

13, growing at an annual rate of 10-12% since 2009-10. Of the total market,

sugar confectionery holds a market share of around 46% and the rest by

chocolate and gum confectionery segments. Owing to lower unit price than

chocolate confectioneries, sugar confectionery segment has registered higher

volume sales over the recent years Traditionally, small domestic players

catering largely to a regional market accounted for a major share of the sugar

confectionery market. However, in the recent years, multinational players

have entered this market and have introduced quality products. Chocolate

consumption is mainly centered around semi-urban and urban areas due to

foreign exposure, rising disposable income and consumers’ impulse buying.

Players have identified age-specific niche market segments within the

chocolate confectionery market and are undertaking intense advertising

campaign to ensure effective brand communication and positioning.

The confectionary market in India has a well entrenched presence of

multinational players such as Mondelez (formerly Cadbury India), Nestle,

Perfetti Van Melle, Mars India and Lotte as well as large domestic players

such as Amul, Parle, ITC, Ravalgon and Candico. Multinational companies

such as Ferrerro, Hersheys and Lindt have a strong presence in the premium

chocolate market. In the chocolate confectionery segment, Cadbury holds a

market share of around 65-70%, followed by Nestle at around 20%

CONFECTIONARY INDUSTRY IN GUJARAT

Surat: Move over the sugary gharis and ghevars! Surat will start dishing out

Swiss chocolates too.

City-based Rajhans (Desai Jain) Group is setting up a Rs 500 crore chocolate

factory in Kim on Mumbai-Ahmadabad highway. The Rs 2,000 crore real

estate group has diversified into confectionery business by tying up with a

leading chocolate maker from Switzerland to manufacture nearly 25 tones of

chocolate bars and moulds.

To be sold under the brand name Schmitten and Hoppits, the chocolates will

be available in the market by January. Schmitten will be in moulds and

Hoppits which will be sold as bars. The group is setting up the factory

sprawling on 1.5 lakh sq ft land.

The machinery and operating technology is imported from the UK, Denmark,

Germany and Switzerland. The factory is the first of its kind in Gujarat and

touted to be the third biggest in the country after Cadbury’s and Nestlé’s .

"The Swiss chocolate maker with whom we have tied up is number one in

Switzerland," said Jayesh Desai, chairman of the group. Desai said the

chocolates will be premium brands.

The Indian chocolate market is valued at around Rs 4,500 crore is likely to

touch Rs 7,500 crore by 2015, according to Assocham. Cadbury commands

the highest 70% share. Rajhans Group has also hired two top executives from

Cadbury.

Shubhra Kallani, marketing head of Rajhans Nutriments, said, "We will launch

our products in eight states including Gujarat, Maharashtra, Tamil Nadu,

Punjab, Rajasthan , Karnataka, Delhi and West Bengal."

"Compared to other chocolates selling in the market, these will be costlier as it

will be apremium product," she added. The plant in itself will be a tourist spot

for those wanting to see how chocolates are made.

CURRENT TRENDS IN CONFECTIONARY INDUSTRY

There are a number of trends within the chocolate industry that are driving

growth; and product innovation in 2010 brought a 16% increase in new

product releases over 2009. Increasing disposable incomes as well as

changing public sentiments regarding health and our global community are

the driving forces behind this growth in innovation.

Premium and specialty items have shown strong growth over the long-term.

During the recession, there had been a shift away from premium items, but as

the economy has continued to recover, sales of premium items have taken

the lead again. High-end varieties can be baked on the premises, come from

a renowned region or have a hidden secret recipe.

Seasonal and boxed assorted chocolates have been experiencing the fastest

growth, and sales are expected to expand 13% between 2010 and 2015.

Holidays, birthdays, retirement parties and more, chocolate is a versatile gift

for many occasions.

Over the last several decades there has been increased understanding of

what constitutes a healthy diet, and there has been a dramatic increase in

sales of sugar free, reduced fat and reduced calorie offerings.

Dark chocolate is known to lower both blood pressure and cholesterol, and

has nearly 8 times the number of antioxidants as found in strawberries.

A recent survey found that 35% of respondents believe dark chocolate to be

healthier, and it shows: sales grew 9% in 2009 versus 3.6% for the chocolate

industry as a whole. Fair-trade certified chocolate is another fast growing

segment of the market, where consumers pay a premium to ensure goods are

produced in an ethical manner. As our global community grows smaller with

the communication revolution, it becomes glaringly obvious that goods

produced in developing countries are often subject to horrible labor conditions

or controlled by dominant industry participants.

Fair Trade is a social movement aimed to promote sustainability in developing

countries, and generally requires a higher price but conforms to higher social

and environmental standards.

PESTEL ANALYSIS OF CONFECTIONARY INDUSTRY

The PESTEL model of analysis will be used to observe the external factors

and their impacts on the global confectionary industry. PESTEL represents a

total of six factors, namely Political, Economical, Social, Technological,

Ecological and Legal.

Political Factors: The policies of restrictions imposed on trade as well as

protectionist policies for sugar producers created by developed countries

caused an increase of sugar prices resulting from the decrease in supply. This

has been seen as a threat towards confectionary companies, due to their

dependence on sugar for their products.

Economic Factors: The recent global economic crisis has affected the cost

of operations for companies as well as consumption by customers.

Consumers tend to spend very conservatively and purchase only times of

necessity during recessionary periods. This can have a negative effect on

sales of luxurious or premium products in the market, in which the

confectionary industry belongs. Adding to this burden, the increased price of

cocoa, which is typically a main ingredient of some confectionary products,

has had a significant impact on the confectionary industry.

Social Factors: The overall population of Europe is aging compared to other

markets. This is important for the confectionary industry, because the market

relies on purchases from younger consumers. Additionally, health

consciousness plays a role in the sales of the confectionary market's growth.

Technological Factors: The technological factors that have affected the

confectionary market can be seen in the development of artificial sweeteners

including xylitol, isomalt, and stevia. The developments of these ingredients

resulted in producers of confectionary products to promote non-sugar

products to support the growing segment of consumers who are health

conscious and provide healthier products.

Ecological Factors: Environmentally friendliness has become a growing

concern for many consumers recently. This trend represents nearly 30

percent of the market of consumers. This has resulted in the confectionary

market's development of new packaging and materials which are

environmentally friendly.

Legal Factors: Obesity is becoming a growing concern for most people in

developed countries. Laws have been created which deal with these potential

health problems, in particular obesity in children is addressed through these

laws. The development of these laws has increased restrictions to

promotional efforts towards children of companies such as confectionary

producers.

MAJOR PLAYERS IN CONFECTIONARY INDUSTRY

Table No: 2.1 Major Players

Product/Brand Competitors

Mondelez India Silk, Bourneville, Celebrations, Toblerone, Glow

Nestle India Kit Kat Senses, Kit Kat Dark Senses, Alpino

Amul Dark Chocolate, Tropical Orange Chocolate

Mars International Snickers, Galaxy, Mars, Milky Way, Skittles, M&M's, Twix

Ferrero India Ferrero Rocher, Raffaello, Mon Cheri

Lindt Creation Hazelnut de Luxe Milk, Creation Mousse au

Chocolat Dark, Lindor Bar Milk, Lindt Swiss Luxury

Selection, Lindt Excellence

Hershey's Milk Chocolate & Almonds Giant Bar, Kisses Milk Cho

and Almonds,

Frey Pecan & Caramel Chocolate, Creamy Milk Chocolate,

Swiss Classic 72% Dark Chocolate Bar

Chocoholic

Belgium

Chocolates

Nutty and Fiery Combo of Chocolate Bars, Milk

Chocolate, Dark Chocolate, Caramel

MAJOR OFFERINGS OF CONFECTIONARY INDUSTRY

Confectionery is the art of making confections, which are food items that are

rich in sugar and carbohydrates. Exact definitions are difficult. In general,

though, confectionery is divided into two broad and somewhat overlapping

categories, bakers' confections and sugar confections.

Bakers' confectionery, also called flour confections, includes principally sweet

pastries, cakes, and similar baked goods. In the Middle East and Asia, flour-

based confections are more dominant.

Sugar confectionery includes sweets, candied nuts, chocolates, chewing gum,

sweetmeats, pastillage, and other confections that are made primarily of

sugar. In some cases, chocolate confections (confections made of chocolate)

are treated as a separate category, as are sugar-free versions of sugar

confections. The words candy (US and Canada), sweets (UK and Ireland),

and lollies (Australia and New Zealand) are common words for the most

common varieties of sugar confectionery.

The confectionery industry also includes specialized training schools and

extensive historical records. Traditional confectionery goes back to ancient

times, and continued to be eaten through the Middle Ages into the modern

era.

CHAPTER3

RAJHANS

(DESAI & JAIN) GROUP

PROFILE

RAJHANS (DESAI - JAIN) GROUP

GROUP PROFILE

The Rajhans (Desai-Jain) Group stands as an example of a successful

journey that has changed the lives of many people. Spearheaded, managed

and run by the first generation of young and dynamic entrepreneurs, the

success story of the group started in the year 1990 with its very first project in

the Edible Oil Refinery. This success gave the momentum and confidence to

venture into the field of textiles. RAJHANS SILK MILLS PVT. LTD. was setup

at Sachin in the year 1997.

In the year 2000, the dynamism and foresight of the management gave a new

direction to the entertainment industry of Gujarat, setting up an ultra-modern,

luxurious and versatile Cinema House, RAJHANS PRIME CINEMA, at Surat.

With time and success on the group's side, the company soon ventured into

Real Estate - the fastest growing industry in India. In the short span of 10

years, the group has undertaken various projects ranging from Commercial

Complexes, Shopping Malls, Residential High-Rise Apartments, Bungalows

and Row Houses. Today, Rajhans Real estate's construction sites are spread

across Gujarat and run into millions of square feet, making it one of the most

trusted and valuable brand in the state.

The group also envisaged enormous scope and siege opportunity in

Hospitality Industry with investments in Boutique Hotels at different locations

across the country. Projects have already commenced at Shirdi,

Mahabaleshwar, Mt. Abu, Udaipur and Vaishnodevi.

In recent years, the group has planned to penetrate into the one of the most

fascinating Confectionery Industry, manufacturing quality chocolate of

international standards which is presently dominated by the multinational

conglomerates.

MANAGEMENT

A group so well poised has to be driven by stalwarts who live their passion

every moment. Rajhans (Desai-Jain) Group is spearheaded by dynamic

leaders who imbibe their values in the workforce and thereby ensuring growth

in various verticals of the business. Adding more to it are technical expertise,

excellent domain knowledge and extensive cross-functional experience, which

turn crucial in smooth functioning of the group.

Mr. JAYESH B. DESAI - GROUP CHAIRMAN

Mr. Jayesh Desai is a very young, dynamic,

energetic and passionate personality, has

been leading the Group since the inception.

He is first-generation entrepreneur, an

exemplary leader and an instrumental force

behind the success of the Rajhans Group.

A versatile man with strong business acumen,

Mr. Desai heads planning and strategic

business development and plays an active role in developing the business

strategy for the group. He is really instrumental in Group’s foray into every

new business venture. He is a man with vision and mission having in-built

quality of seizing every business opportunity at optimum level. He also

spearheads the social welfare activities for the group.

His philosophy of “customer happiness through delightful products and

services” is now very much the driving force for the group.

Mr. SHIVLAL G. JAIN - GROUP M.D.Mr. Shivlal Jain, a dynamic and committed leader

with vast experience expertise in the field of

Finance, Accounts, Costing and Taxation. He is

instrumental in successfully running and managing

all the business verticals of the Group. A person

admired by everyone in the Group for his

commitment, dedication and flexible approach

towards work, Mr. Shivlal Jain is looked upon as a

mentor who leads by example. A key person in the

success story of the Group, his wisdom and

experience has become invaluable assets for the Group.

VISION & MISSION

Vision - Spreading Happiness

To enrich and enhance people’s lives with happiness, by bringing in products

and services those delight them and add value to their lives.

Mission - Creating Experiences

Develop world-class products and services that adhere to international

quality standards.

Create experiences that delight customers by delivering invaluable

services.

Empower stakeholders to grow in a manner that is mutually beneficial.

VALUES

Often it's the values inside that create a personality, celebrity and an identity.

In this era of globalization, values matter more than volumes in creating a

corporate conglomerate. The Rajhans (Desai-Jain) Group too is result of its

invaluable values namely integrity, excellence, team work and customer

delight. The creative rendition of this is depicted in the form of value tree.

IntegrityIntegrity goes a long way in practicing fair business in today's world. They

in turn ensure trustworthiness amongst customers, team members and

stake holders. At Rajhans (Desai-Jain) Group, integrity lies in the roots of

our business. Thus they are depicted through the roots in the value tree.

PassionIn today's world businesses are result oriented. Every day a new

benchmark is created. At Rajhans (Desai-Jain) Group, passion forms the

main trunk of our business. We passionately pursue our dreams. That

which paves a path for innovative products, excellence and customer

delights. Thus Passion is depicted through the main trunk of the value

tree.

ExcellenceAt Rajhans (Desai - Jain) Group, we believe in benchmarks. A team

member inspires a fellow team member. And thus excellence is the core

objective that can be seen by the outside world. In our value tree,

excellence is depicted through the leaves that symbolize the evergreen

and a blossoming business conglomerate.

TeamworkAny business house is a result of unmatched teamwork by its team

members. At Rajhans (Desai-Jain) Group, every team member takes the

onus to accomplish the given task. The end result: Brand Rajhans wins

more hearts of people than awards and accolades. In our value tree,

teamwork is depicted through the tree which is a culmination of various

values and priceless team effort.

Customer delightWhen values form the core, customer delight is the fruit borne by the

business house. We believe that customer delight forms the core essence

of our existence. Thus this value is depicted through the aerial roots of the

value tree.

Mr. JAYESH DESAI(GROUP CHAIRMAN)

Mr.PRADEEP(Sales Head)

MS, ZAKHNA DESAI

(MARKETINGHEAD)

Mr. DELIP BHENDERI (HR HEAD)

MR. Annarao patil

(Production head)

Mr.shelendraMr. Vishal(Sales officers)

Mr. Alpesh BalarMs. Bhumi

solankiMr. Bhavin Mr.anoop (Marketing executives)

Ms.bhavita Mr.vishal

Mr.indrajit Ms.ankita

(HR TEAM)

Sudheer maram(AGM)

Mr.rajkumar Mr.dhaval

ORGANOGRAM

Profile of Rajhans Nutriments Pvt. Ltd:SCHMITTEN (PREMIUM CHOCOLATES)

Figure: 3.1 Schmitten chocolate photos

“If

there's no chocolate in Heaven, I'm not going.” Jane Seabrook, Furry Logic

Laugh at Life. The mere word ‘Chocolate’ has always fascinated us. It has

taken over as a special affinity in the culinary list of every culture and of

course, it’s a special treat that appeals to one and all.

At Rajhans (Desai-Jain) Group, we truly understand the value & essence

of cocoa and therefore came up with an idea of establishing a fascinating

and high-standard chocolate factory. With a total built-up area of 1.75 lakh

sq.ft, it is equipped with 100 per cent European technology with a range of

machineries sourced from the UK, Denmark, Germany, Belgium and

Switzerland; and beyond a shadow of a doubt, this makes us one of the

fastest-growing premium chocolate factories in Asia.

With all the best-in class facilities, quality control unit and expert chocolate-

makers, our new brand of luxury chocolate, ‘Schmitten’ is in a class by itself

which is all set out on a delicious mission to spread happiness amongst the

chocoholics from across the world. Our range of best-tasting chocolate tablets

includes ‘Schmitten’ and for a variety of chocolate bars ‘Hoppits’ that are

available in varied ingredients with fantabulous taste and high on energy

values.

Premium Swiss moulded tablets Premium chocolate bars

Adhering to the sheer words ‘Luxury Chocolates’, we source the richest cocoa

beans from Ghana and use only the highest quality elements with their very

own blend and recipes. Since we’re duly concerned over consumer choices,

we produce only a luxury range of both milk and dark chocolates with portion

sizes those are perfectly right for the customers and their families.

Our passion towards making the best chocolates is absolutely evident and

thus, we take great pride in our constant endeavors and values for delivering

the best!

Figure: 3.2 Brand Ambassador of Schmitten Chocolate

Brand Ambassador – Priyanka Chopra

SCHMITTEN

Figure: 3.3 Variety of Schmitten chocolate

HOPPITS

Figure: 3.4 Varieties of Hoppits

Milestones

Table No: 3.1 Milestones Achieved by

Beginning

Pioneer Business

Edible Oil Edible Oil Sector

1997 Diversificatio

n

Silk Mills Pvt.

Ltd.

Textile Sector

2000 Diversificatio

n

Prime Cinema Entertainment

Sector

2001 Diversificatio

n

Builders Realty Sector

2003 Expansion Veg.Oil Refinery Edible Oil

Sector

2004 Expansion Constructions

Pvt.Ltd

Realty Sector

2005 Expansion Poly-Prints Textile Sector

2007 Expansion Cine-World Entertainment

Sector

2010 Expansion Infracon India Realty Sector

2011 Diversificatio

n

Nutriments Confectionery

Sector

SWOT ANALYSIS

Strengths

Recipes are designed and developed on Europe.

Pure cocoa based chocolate, not compound chocolate.

Value for money compared to imported chocolate.

Highly automated process lines and machineries imported from

Europe.

Free from non veg./ egg based ingredients

Premium chocolates made with a real cocoa ingredient.

Hoppits are made with the milk protein as emulsifier

Weaknesses

Customer convenience- customer face difficult to find way to reach store in the mall.

Customers are not aware about existence of Schmitten and Hoppits in the town/mall.

Pricing perception with respect to competitors. Lack of sales support

Opportunities

Potential for investment. (SIS Shop in Shop)

They can increase product awareness by working hard in marketing

strategies like advertisement different means, hoarding, different

activities etc.

Introducing more variants in both dark and milk chocolate to curb major

player.

Threats

Rising chocolate prices is biggest threat.

Improving store standards at competition

High visibility/ marketing by competition.

Cut throat competition

Pricing power of competition

MARKET POSITION

SCHMITTEN CHOCOLATES TODAY:

Figure No: 3.5 Schmitten chocolate today

The graphic above shows a brief overview of a company who launched its

premium brand of chocolate in the Indian Luxury chocolate market in

September 2014. Less than a year after its launch catering to only 3 states

namely Gujarat, Rajasthan and Maharashtra with a handful of distributors,

currently the company has presence in 12 states with 12 CFA and 233

distributors, hence having a robust sales and distribution network. The Indian

chocolate market is dominated by Mondelez, which commands a 62% share,

ahead of nearest rival Nestle on 18%. Mars and Ferrero with a share of 6%

and 3% respectively – both have a premium positioning in the market.

Mondelez recently premiumized its Bournville brand to appeal to the

increasingly affluent Indian consumer. Mars last year launched premium tablet

chocolate brand Galaxy in the country at a reduced price point and also

Ferrero’s Rocher brand has proved popular among Indian consumers.

The company currently holds a portfolio of 2 products in Schmiiten which has

7 variants and Hoppits which falls under the Schmiiten range of chocolates

has 4 variants. The company within its very first year of launch has captured

2% of the luxury chocolate segment in India and has started exporting to

nearby countries such as Nepal and Bhutan. Value notes expects the Indian

chocolate to grow at a compounded annual growth rate (CAGR) of 16% over

Presence in 12 states through 12 Carry Forward Agents (CFA) and 233 distributorsHas a portfolio of 2 product linesOver the past year they have captured 2% of the luxury chocolate segment.The sales have grown by more than 50% over the past quarter.

the next five years to reach INR 122bn ($2bn) by fiscal 2019. The Schmitten

brand is manufactured in Gujarat, India and is aimed at India’s youth and

young adults was launched by Bollywood actor Priyanka Chopra. The

company has now grown by more than 50% quarterly since its launch in

September 2014, thus already mounting a challenge to the industry stalwarts.

CHAPTER4

REVIEW OF LITERATURE

Annika Lybeck, Maria Holmlund-Rytkonen & Maria Saaksjarvi (September 2006) Studied on Consumer Perceptions and Buying of

Chocolate Bars in Finland. The researcher has used structured questionnaire

and open ended question for collecting qualitative and quantitative data.

Findings of the study reveals that the consumer would choose a store brand

every time or never when making a buying decision. Some significant findings

are that heavy-user store-brand chocolate bar buyers have more favourable

attitudes towards store brands, are more price sensitive, more often seek

price offers, and find availability and friends’ recommendations more

important. Thus, it seems as if store-brand buyers altogether are more

confident with retailers’ own products’ quality and are more sensitive to price

and value for money.

Prof. Ray Titus, Dr. Debashish sengupta, Ms. Alankrita Garg (February 2013) Studied on Leveraging Distribution Networks for Competitive

Advantage. A researcher has used an unstructured qualitative questionnaire

for the data collection. The information collected from the distributors, projects

that Britannia has a good hold on the market in terms of distribution strategies

and also that Britannia has managed to get a good market share in the

biscuits category and Parle’s glucose biscuits are very popular among the

rural population also as they are one of the oldest available glucose biscuits in

the market and the glucose biscuits are available at various prices which

makes it feasible for a larger population to buy it.

Dr. Abdul Assis Koroth (January 2015) Studied on The Influence of

Demographics on the Perception Level of Multilevel Marketing Distributors.

The empirical data for this study was obtained through a survey conducted

among 614 distributors of selected companies in three regions of Kerala. The

study reveals that there appears to be a significant correlation between

education and level of perception to multilevel marketing as people who had

the lowest perception were most likely to be those with low qualifications. The

study reveals that the respondents who were in Government or private

employment were perceived well the concept of MLM (Multi-level marketing

channel firm). Whereas more than half of the respondents who unemployed

had little perception about MLM. The conclusion of the study reveals that

direct sales have become so popular in India because it offers everyone the

chance of becoming a successful self employed opportunity with the freedom

to win.

Fazlollah Kazemi (September 2010) Studied on The Role of Media on

Consumer Brand Choice a Case Study of Chocolate Industry. The researcher

has used structure questionnaire and sample size was 600. Findings reveals

that out of seven most preferred brands (Cadbury Dairy Milk, 5Star, Perk, Bar

one, Kit Kat, Munch and Nestle, three brands (Cadbury Dairy Milk 37.7%, 5

Star 17.7% and Perk 16.2%) made up about 72% of the brand preference of

consumers. It also reveals that Dairy Milk is the most preferred brand. Study

also reveals that advertising plays important role in retaining customer and

increasing market share. The study concludes that advertising and quality are

two major factors that affect consumer preference for chocolates.

Justin Beneke, Victoria Floyd, Caroline Rono & Kimryn Sherwood (December2, 2014) Studied on Chocolate, Colour and Consideration: An

Exploratory Study o Consumer Response to Packaging Variation in the South

African Confectionery Sector. The researcher has used mall-intercept survey

method involves the collection of data in which a random sample of

respondents passing through a shopping mall are intercepted and asked to

participate in the study. Respondents were generally agreeable to the notion

of the colours red, blue and purple stimulating spontaneous response in

favour of purchasing chocolate confectionery at the point of sale. In this

respect, orange was seen to be out of kilter with the other colours and

deemed considerably less attractive in prompting spontaneous response.

Hemant J. Katole,B.V.Sangvikar (October 1, 2012)A study of consumer

purchase behaviour in organized retail outlets. In this research snowball and

convenience sampling method has used for sampling. Based on the retail

format, the researcher decided to conduct the survey of three types of retailer

which include supermarkets, departmental Stores and hypermarket.

Researchers used questionnaire and personal interview method for collecting

data. Finding of the study suggest that shopping habits of Indian customers

are changing due to their growing disposable income, relative increase in the

younger population, and the change in attitudes towards shopping. In the

study researchers have observed that customer purchasing behaviour

towards garments & cosmetics followed by food & eatables and electronic

goods.

Bhagwan Singh, Dr. Anjaney K. Pandey.A Literature study on trends in

retail practise and their impact on traditional retailing in India. In this research

data is collected solely from secondary sources like print journals, online

journals, books, reports etc. It can be concluded that the transformation of

traditional retailing to organized retailing in the form of shopping malls, hyper

city, supermarkets, departmental stores, convenience store, specialty stores

etc. is taking place at a regular pace in India. Global retail players are opening

their outlets. Urban people are enjoying “shopptainment” in these places.

Omari Nekoro Williams (April 2015) Studied on Retail Distribution within the

New York City Organic Cacao Market. In the research data is collected from

face to face in-depth interview. Researcher has identified six themes from the

participants, which were price point strategy, B2B relationships, differentiation,

strategic locations, lack of operating capital, and customer relationships.

Conclusion of the study reveals that enhancing profits in the distribution

channels of small organic cacao companies requires a holistic approach in the

New York Tri-State area. Companies should focus on multiple components to

enhance profits in their distribution channels.

Ms. Parul Mittal, Dr. Ravinder (September 2012) Studied on Consumer

Buying Behaviour and Perception towards Chocolates Brands and Its

Consumption. The objective of the study includes what was general

behaviour of consumer and then inferring the relationship that exist among the

different variables to test the extent of brand loyalty and influence of one

variable over the other. Findings of the study reveals that most of the

respondents are consuming chocolates daily, most of the respondents are

buying chocolates for personal consumption as well as for gifting purpose.

The study further reveals that most of the respondent’s purchase decision is

affected by display ads at store, most of the male and female are buying

chocolates due to taste, availability and packaging etc. In study of 86

respondents it was found that 95% (82) respondents like Cadbury Brand, 68%

(59) respondents like Nestle Brand, 24% (21) of respondents like Amul Brand

& 1% respondents like Other Brand. So it can be concluded that Cadbury is

most famous brand among others.

CHAPTER5

RESEARCH METHODOLOGY

a. PROBLEM STATEMENT

Some of the retailers are not aware about the Schmitten chocolate. Retailers

are known about that chocolate brand but the distribution channel are not

good and Hence Researcher analyzes “To analyze retailer experience of

selling Schmitten as a brand of chocolate.”

b. OBJECTIVE OF STUDY To analyze retailer experience of selling Schmitten as a brand of

chocolate.

To do comparative study of Schmitten with other brands of chocolates.

To know retailer’s preference of selling brands of chocolates.

To know reasons why retailers are not selling Schmitten as a brand of

chocolate.

c. RESEARCH DESIGNResearch design is the plan structure and strategy if investigation conceived

so as to obtain answers to research question and to control variance.

Descriptive research also known as statistical research. It describes data and

characteristics about the population or phenomenon being studied.

Descriptive research answers the questions who, what, where, when and

how. This study is complex and determines high degree scientific skill to study

the problem.

In This study the descriptive research design has been conducted.

d. SAMPLING PLAN Population: All the retailers selling chocolates from their retail store in

Surat city can be considered as part of population for the study.

Sample Size: In this project 100 respondents as retailers were taken as

sample.

Sampling Method: In this study non probability, convenience sampling

method has been used.

e. SOURCES OF DATA

Basically there are two types of data collection sources:

1. Primary Data:Primary data means data collected directly from first-hand experience.

Means data collected for the first time by any researcher for any

research use. This study uses Questionnaire as a tool for the collecting

primary data.

2. Secondary Data Secondary data are those, which have already been collected by some

other person for their purpose and publish. Secondary data are usually

in the shape of finished products.

In this project, the secondary data such as research paper, internet, and

websites etc. are used to collect for the preparation of research of project. In

the study primary and secondary data both type of data has been used.

f. DATA COLLECTION METHODThis research study uses Survey as method for collecting primary data from

the respondents.

g. DATA COLLECTION TOOL

For this project structured questionnaire was used as tool for data collection

from the respondent for the purpose of conducting research.

h. HYPOTHESIS TESTING BY USING CHI SQUARE TEST

H0: There is no significant association between experience of selling

Schmitten and selling of other products of Schmitten.

H1: There is significant association between experience of selling Schmitten

and selling of other products of Schmitten.

H0: There is no significant association between area and selling of Schmitten

brand.

H1: There is significant association between area and selling of Schmitten

brand.

H0: There is no significant association between type of store and selling of

Schmitten brand.

H1: There is significant association between type of store and selling of

Schmitten brand.

i. TOOLS FOR ANALYSIS

For the purpose of analysis various analytical approaches have been used

like simple percentage, frequency, charts and Chi Square Test by using SPSS

software.

j. LIMITATION OF THE STUDY

Respondent may give bias data which may make result of the study

inaccurate.

Sample size chosen for the study was small which may not be good

representative of the universe under the study.

CHAPTER

6 DATA ANALYSIS

&

INTERPRETATIONS

1. Since how long you are running the retail store?

[ ] less than 1 year [ ] 1 Year-3 years

[ ] 3 Year-5 year [ ] 5 Year-7 years

[ ] more than 7 years

Table: 6.1 Tenure of store

Particular Respondent

Less than 1 year 19

1-3 year 8

3-5 year 34

5-7 year 17

More than 7 year 22

Figure: 6.1 Tenure of store (%)

Less than 1 year

1 -3 year 3-5 year 5-7 year More than 7 year

0

5

10

15

20

25

30

35

19

8

34

17

22

Respondent

Interpretation

From the above graph and data, it can be stated that 34 stores were running

from last three to five years, while 22 stores were running from more than

seven years and 19 stores of Surat city were running for less than one year.

2. Which brand of chocolates do you keep in your store?[ ] Cadbury [ ] Kit Kat

[ ] Amul [ ] Snickers

[ ] Schmitten [ ] Hoppits

[ ] 5-star [ ] Munch

[ ] Perk [ ]

Others………………………………..

Table: 6.2 Brands of Chocolates

Particulars No. of Respondents

Cadbury 100

Amul 42

Schmitten 54

5- Star 3

Perk 1

Kit Kat 5

Snickers 34

Hoppits 4

Munch 65

Other 11

Figure: 6.2 Brands of chocolate (%)

Cadbury Amul schmitten 5 star Perk Kit Kat Snickers hoppits Munch Other0

102030405060708090

100100

42

54

3 1 5

34

4

65

11

Respondent

Interpretation

From the above graph it can be stated that all of 100 stores were keeping

Cadbury their store, 65 out of 100 stores were keeping munch in their store,

while 54 stores out of 100 are keeping Schmitten in their store for selling and

so on.

3. Have you ever sold Schmitten as a brand of chocolate?[ ] Yes [ ] No

Table: 6.3 have you ever sold Schmitten chocolate


Yes 54

No 46

Figure: 6.3 have you ever sold Schmitten chocolate (%)

54%

46%

Yes No

Interpretation

From the above data it can be found that 46 % respondents have sold

Schmitten brand, while 54% respondents have not sold Schmitten yet.

4. Describe your selling experience of Schmitten on following criteria and

scale:

Particulars Very good

Good

Average

Poor Very Poor

Product Awareness 1 24 27 2 0

Consumer acceptance

0 22 25 7 0

Product quality 8 41 3 2 0

Product taste 13 38 3 0 0

Price 0 1 49 4 0

Packaging 2 8 36 8 0

Margin 1 7 43 2 1

Figure: 6.4 Experience of selling Schmitten (%)

product awareness

consumer acceptance

product quality

product taste

price packaging margin0

5

10

15

20

25

30

35

40

45

50

1 0

8

13

02 1

2422

4138

1

8 7

2725

3 3

49

36

43

2

7

20

4

8

20 0 0 0 0 0 1

very good good avaerage poor very poor

Interpretation

Form the above table selling experience of retailer as stated above, 41

retailers out of 100 said that product quality is good, while 49 respondents out

of 100 said that the price is average and 43 respondents out of 100 said that

margin provided by company is average and so on...

5. Compare the brand of Schmitten along with available brands of chocolate on following scale:

Particulars Cadbury Schmitten Nestle Amul Mars

Quality of product 47 6 1 0 0

Product variants 41 1 6 4 0

Good in taste 26 28 0 0 0

Attractive package design

49 2 1 2 0

Small units 26 0 1 27 0

Price 47 0 5 2 0

Service of distributors 49 0 4 1 0

Promotional offers 48 1 3 1 1

Figure: 6.5 Comparison with the brand of chocolates (%)

Qulity of product

Product variants

Good in test attractive package design

Small units Price Service of distributors

Promotional Offers

0

5

10

15

20

25

30

35

40

45

50 47

41

26

49

26

4749 48

6

1

28

20 0 0 11

6

0 1 15 4 3

04

02

27

2 1 10 0 0 0 0 0 0 1

Cadbury Schmitten Nestle Amul Mars

Interpretation

As stated above 47 respondents said that Cadbury’s product quality is good than all other chocolates, while retailer feels that taste of Schmitten is better than Cadbury and all other chocolates, further more Amul and Cadbury are the two brands which has small units than other brands and service of distributors and promotional offers are better in Cadbury than other chocolates and so on.

6. Which of the following chocolates brands do you prefer to sell among customer on following scale:

[5 - Mostly Preferred, 4 - Preferred, 3 - Neutral, 2 - Less Preferred, 1 - Not Preferred]

Particulars 5 4 3 2 1

Cadbury Dairy milk 49 5 0 0 0

Nestle Kit Kat 5 27 20 1 1

Schmitten 6 23 17 8 0

Amul 0 12 21 7 14

Mars 0 8 14 4 28

Figure: 6.6 Preference to sell among customer (%)

Mostly Preferred Preferred Neutral Less Preferred Not Preferred0

5

10

15

20

25

30

35

40

45

5049

5

0 0 0

5

27

20

1 1

6

23

17

8

00

12

21

7

14

0

8

14

4

28

Cadbury Dairy milk Nestle Kit Kat SchmittenAmul Mars

Interpretation

From the above table 49 respondents out of 100 said that they mostly

preferred Cadbury to sell among customer, 28 respondents said that they will

not prefer mars to sell among the customers and 27 respondents agreed on

nestle and 23 respondents agreed on Schmitten that they will prefer to sell

among customers.

7. Share your overall experience of selling Schmitten on following scale:

[ ] Very satisfactory [ ] Satisfactory

[ ] Neutral [ ] Dissatisfactory

[ ] Very dissatisfactory

Table: 6.7 Over Experience of selling Schmitten


Very satisfactory 0

Satisfactory 21

Neutral 31

Dissatisfactory 2

Very dissatisfactory 0

Figure: 6.7 over experience of selling Schmitten (%)

Very Satisfactory Satisfactory Neutral Dissatisfactory Very Satisfactory0

5

10

15

20

25

30

35

0

21

31

20

Interpretation

From the above table 31 respondents said that their experience is neutral of

selling Schmitten while 21 respondents were satisfied with selling Schmitten

among customers.

8. How long do you see yourself associated with the Schmitten brand?

[ ] I will always sell as long as Schmitten brand is available.

[ ] It depends on brand performance in coming time.

[ ] I cannot commit long time.

Table: 6.8 Associated with the Schmitten brand in Future


I will always sell as long as Schmitten brand is available 12

It depends on brand performance in coming time 33

I cannot commit long time 9

Figure: 6.8 Associated with the Schmitten brand in Future (%)

I will always sell as long as brand is available

It depends on brand performance in coming

time

I cannot commit long time

0

5

10

15

20

25

30

35

12

33

9

Interpretation

From the above table 33 respondents out of 100 said that they will associate

with Schmitten as per its brand performance, while 12 respondents said that

they will sell Schmitten as long as possible while 9 respondents said that they

can’t commit long time with Schmitten.

9. Are you willing to sell other products of Schmitten?

[ ] Yes [ ] No

Table: 6.9 sell other product of Schmitten


Yes 49

No 5

Figure: 6.9 sell other product of Schmitten (%)

91%

9%

Yes No

Interpretation

From the above table 49 respondents that mean 91% said that they were

ready to sell other products of Schmitten while a 9% respondent that means 5

respondents were not ready to sell other brands of Schmitten.

10.Will you recommend others to sell Schmitten brand?

[ ] Yes [ ] No

[ ] Can’t say

Table: 6.10 recommend others to sell Schmitten


Yes 30

No 5

Can’t say 19

Figure: 6.10 recommend others to sell Schmitten (%)

56%

9%

35%

Yes No Can't Say

Interpretation

From the above table 30 respondents were ready to recommend Schmitten to

other while 5 respondents were not ready to recommend and 19 respondents

were yet decided.

11.Do you find any scope of improvement in Schmitten?

[ ] Yes [ ] No

Table: 6.11 (A) Scope of improvement


Yes 52

No 2

Figure: 6.11 (A) Scope of improvement (%)

96%

4%

Yes No

Interpretation

From the above table 52 respondents found scope of improvement in

Schmitten, while 2 respondents did not find any scope of improvement in

Schmitten.

(B)If yes than in which area,

[ ] Package Design [ ] Taste

[ ] Price [ ] Margin structure

[ ] Promotional activity [ ] After sales services

[ ] Service of distributor

Table: 6.11 (B) Area of improvement


Package Design 10

Price 48

Promotional activity 48

Service of distributor 35

Taste 1

Margin structure 14

After sales services 27

Figure: (B) Area of improvement (%)

Package Design

Price Promotional activity

Service of Distributor

Taste Margin Structure

After sales service

0

5

10

15

20

25

30

35

40

45

50

10

48 48

35

1

14

27

Interpretation

From the above table 48 respondents found scope of improvement in price

and promotional activity, while 35 respondent and 27 respondents found

scope of improvement in distributor and after sales service respectively.

12.Why have you not sold the Schmitten yet, state the reasons:

[ ] I was not aware about the brand of Schmitten.

[ ] Nobody has ask me about the Schmitten.

[ ] I find better alternative brands of chocolate.

[ ] I find less margin compare to other brand.

[ ] If other please specify………………………………………

Table: 6:12 Reasons for not sold Schmitten yet


I was not aware about the brand of Schmitten. 20

Nobody has ask me about the Schmitten. 13

find better alternative brands of chocolate 11

I find less margin compare to other brand. 2

Others 0

Figure: 6:12 reasons for not sold Schmitten yet (%)

048

121620

20

13 11

2 0

Interpretation

From the above table 20 respondents were not selling Schmitten because they were not aware about the Schmitten, 13 respondents were not selling Schmitten because customers have not asked for it, while 11 respondents were not selling because they have better alternative brand of chocolates than Schmitten.

13. If company able to work on above mentioned issues, will you be ready to

sell Schmitten from your store?

[ ] Yes [ ] No

[ ] Can’t say

Table: 6:13 if issue solved, will you sell Schmitten


Yes 27

No 17

Can’t say 2

Figure: 6.13 if issue solved, will you sell Schmitten? (%)

59%

37%

4%

Yes No Can't Say

Interpretation

From the above table 27 respondents will ready to sell Schmitten if company

will work on issues like customer acceptance, awareness of brand and its

offerings etc... While 17 respondents were not ready to sell in future, and 2

respondents were unable to decide on the matter.

14. If Yes, would you like an executive from Schmitten to contact you for the

same?

[ ] Yes [ ] No

[ ] Can’t say

Table: 6.14 executive from Schmitten


Yes 26

No 1

Can’t say 2

Figure: 6.14 executive from Schmitten (%)

90%

3% 7%

Yes No Can't Say

Interpretation

From the above table 26 respondents were ready to meet an executive of

company to sell Schmitten while 1 respondent of them were not ready and 2

respondents were unable to decide on this matter.

HYPOTHESIS TESTING

HYPOTHESIS TESTING BY USING CHI SQUARE TEST

H0: There is no significant association between experience of selling

Schmitten and selling of other products of Schmitten.

H1: There is significant association between experience of selling Schmitten

and selling of other products of Schmitten.

Table No: 6.15 Observed and expected Frequency

Observed N Expected N Residual

0 46 25.0 21.0

Satisfactory 21 25.0 -4.0

Neutral 31 25.0 6.0

Dissatisfactory 2 25.0 -23.0

Total 100

Table No: 6.16 Observed N & Expected N Frequency


0 46 33.3 12.7

Yes 49 33.3 15.7

No 5 33.3 -28.3

Total 100

Table No:6.17 Chi-square Test

Q.7 Q.9

Chi-Square 40.880a 36.260b

Df 3 2

Asymp. Sig. .000 .000

Interpretation

From the above test it can be found that the p value is less than level of

significance i.e. 0.000<0.05 so that null hypothesis is rejected, so there is

significant relationship between experience of selling Schmitten and selling of

other product of Schmitten.

H0: There is no significant association between area and selling of Schmitten

brand.

H1: There is significant association between area and selling of Schmitten

brand.

Table No: 6.18 Observed N & Expected N Frequency


yes 54 50.0 4.0

no 46 50.0 -4.0

Total 100

Table No: 6.19 Area

Observed

N

Expected

N Residual

0 46 16.7 29.3

varachha 30 16.7 13.3

city light 7 16.7 -9.7

bhatar 3 16.7 -13.7

adajan 8 16.7 -8.7

athwa 6 16.7 -10.7

Total 100

Table No: 6.20 Chi- square

Q.3 area

Chi-Square .640a 90.440b

Df 1 5

Asymp. Sig. .424 .000

Interpretation

From the above test it can be found that the p value is more than level of

significance i.e. 0.424>0.05 so that null hypothesis is accepted, so there is no

significant relationship between area and selling of Schmitten brand.

H0: There is no significant association between type of store and selling of

Schmitten brand.

H1: There is significant association between type of store and selling of

Schmitten brand.

Table No: 6.21 Observed & Expected Frequency


yes 54 50.0 4.0

no 46 50.0 -4.0

Total 100

Table No: 6.22 type of Stores Frequency

Observed

N

Expected

N Residual

Bakery 44 13.5 30.5

superstore 3 13.5 -10.5

Dairy 3 13.5 -10.5

provision

store4 13.5 -9.5

Total 54

Table No: 6.23 chi- square

Q.3 store

Chi-Square .640a 91.926b

Df 1 3

Asymp. Sig. .424 .000

Interpretation

From the above test it can be found that the p value is more than level of

significance i.e. 0.424>0.05 so that null hypothesis is accepted, so there is no

significant relationship between type of store and selling of Schmitten brand.

CHAPTER

7 FINDINGS

From the analysis it was found that most of the stores were running from

last three to five years, while some stores were running from more than

seven years and some stores of Surat city were running for less than one

year.

From the analysis it can be stated that all of store were keeping Cadbury,

the second brand is munch which was kept by majority of store and the

third brand was Schmitten.

As stated above, selling experience of retailers, most of the retailers

agreed that product quality was good, while some respondents agreed that

price and margin provided by the company was average.

Most of the retailers that Cadbury’s product quality was good than all other

chocolates, while retailer feels that taste of Schmitten was better than

Cadbury and all other chocolates, further more Amul and Cadbury are the

two brands which has small units than other brands and service of

distributors and promotional offers were better in Cadbury than other

chocolates and so on.

Most of the respondents agreed that they mostly preferred Cadbury to sell

among customer, some respondents said that they will not prefer mars to

sell among the customers and some respondents agreed on Schmitten

and nestle that they will prefer these two brands to sell among customers.

Most of the respondents surveyed agreed that their experience was

neutral of selling Schmitten, while some respondents were satisfied with

selling Schmitten among customers.

Most of the respondents agreed that they will associate with Schmitten as

per its brand performance, while some respondents said that they will sell

Schmitten as long as possible while very few respondents said that they

can’t commit long time with Schmitten.

Most of the respondents agreed that they were ready to sell other products

of Schmitten while some respondents that were not ready to sell other

brands of Schmitten.

Most of the respondents were ready to recommend Schmitten to other

while very few respondents were not ready to recommend and 19

respondents were unable to decide.

Most of the respondents found scope of improvement in Schmitten, while

two respondents were unable to find any scope of improvement in

Schmitten.

Majority of the respondents found scope of improvement in price and

promotional activity, while some respondent found scope of improvement

in distributor and after sales service respectively.

Most of the respondents were not selling Schmitten because they were not

aware about the Schmitten, some respondents were not selling Schmitten

because customers were not asking for it, while very few respondents

were not selling because they have better alternative brand of chocolates

than Schmitten.

Most of the respondents were ready to sell Schmitten if company will work

on awareness issue, consumer acceptance, and comparative

performance, margin issue, mentioned in while some respondents were

not ready to sell.

Most of the respondents were ready to meet an executive of company to

sell Schmitten while one respondent was not ready and 2 respondents

were not cleared about that.

It was also statistically proven by using chi square test that there is

significant relationship between experiences of selling Schmitten and

selling of other product of Schmitten.

It was also statistically proven by using chi square test that there is no

significant relationship between areas, type of store and selling of

Schmitten brand.

CHAPTER

8 CONCLUSIONS

The problem of the research is that most of the respondents were aware of

the Schmitten brand but distribution network was not proper so the researcher

aim is to find retailer experience of selling Schmitten brand and the conclusion

is as below:

It is concluded that most of the respondent surveyed has agreed that they

were having neutral experience for selling Schmitten, while some respondent

were satisfied with it.

It is concluded that most of the respondents agreed that product quality of the

Cadbury’s good, while taste of Schmitten is good among all other chocolate.

Amul and Cadbury are the two brands which has small units and good service

of distributor. Most of the respondent has agreed that Schmitten has good

quality as well as taste among all other brands like Cadbury, Amul, Mars,

Nestle etc…

It is concluded from the study that most of the respondent were ready to sell

the Cadbury among the customer, while some of the respondent were not

ready to sell mars and some the respondent were ready to sell the Nestle and

Schmitten among the customer.

It is concluded that most of the respondents were not selling Schmitten

because they were not aware of the Schmitten brand, customer has not ask

for the Schmitten brand, while some retailers were not selling Schmitten

because they have better alternative like Cadbury, nestle, Amul, etc.

CHAPTER 9

RECOMMENDATIONS

The distributors of the Schmitten were not visiting retailer store

regularly as other brands distributors done so the large stock is out

dated, so the company should create software to keep watch on

retailers stock.

Company should work on Price, packaging and margin structure by

deciding some strategy and they should make their packaging

attractive.

As it was found that most of respondents were ready to sell other

brands of Schmitten. Hence, it is recommended to company that they

can offer other brands like Hoppist to retail stores.

Schmitten was not having good command on promotion of their brand

as like Cadbury so the company should put more emphasis on

promotional activity at regional as well as national level as found from

retailer’s opinion.

They should also make available small units of Schmitten as a free

sample so that awareness is also created as well as sale can be

increased.

They should make small units of chocolates with lower price and less

quantity so that every class can afford.

BIBLIOGRAPHY

Annika Lybeck, Maria Holmlund-Rytko¨ Nen &Maria Saaksja RVI. "Store

Brands vs. Manufacturer Brands:Consumer Perceptions and Buying of

Chocolate Bars in Finland." The International Review Of Retail Distribution

And Consumer Research (2006): 471-492.

B.V.Sangvikar, Hemant J. Katole. "A study of consumer purchase behavior

in organized retail outlets." Journal of Business and Retail Management

Research (JBRMR) (2012): 39-47.

Bhagwan Singh, Dr. Anjaney K. Pandey. "A Literature Study On Trends In

Retail Practices And Their Impact On Traditional Retailing In India."

international journal of management research and development (n.d.).

Bhatt, Himanshu. Swisschocolatenowmadeinsurat. 23 octomber 2013.

http://m.timesofindia.com/city/surat/Swiss-chocolates-now-made-in-Surat/

articleshow/24564340.cms.

Fazlollah Kazemi, Malihe Esmaeili. "The Role of Media on Consumer

Brand Choice of chocolate industry." International Journal of Business

andManagement (2010): 147-154.

Justin Beneke, Victoria Floyd, Caroline Rono & Kimryn Sherwood.

"Chocolate, Colour and Consideration: An Exploratory Study of Consumer

Response to Packaging Variation in the South African." Consumer

Response to Packaging Variation in the South African (2014): 55-65.

Koroth, Dr. Abdul Assis. "The Influence Of Demographics On The

Perception Level Of Multilevel." The Internationaljournalofmanagement

(2013): 1-15.

Kuznetsova, L.S. Thefreedictionary. n.d.

(http://encyclopedia2.thefreedictionary.com/Confectionary+industry).

Ms.Parul Mittal, Dr. Ravinder. academia.edu. september 2012.

(https://www.academia.edu/6498824/Consumer_buying_Behaviour_and_

Perception_towards_choco;ate_brands_and_its_consumption).

Prof. Ray Titus, Dr. Debashish Sengupta, Ms. Alankrita Garg. "Leveraging

Distribution Networks For Competitive Advantage: A Case Of Fmcg

Channel Management At Itc Ltd."

AsiaPacificJournalofMarketing&ManagementReview (2013): 76 -86.

walia, shelly. indians arechocolate addictsbutstill suckers for tradition. 16

february 2015. (http://qz.com/345055/indians-are-chocolate-addicts-but-

still-suckers-for-tradition/).

Williams, Omari Nekoro. "Retail Distribution Within the New York City

Organic Cacao Market." Dissertations and Doctoral Studies (2015): 1-121.

ANNEXURE

1. Since how long you are running the retail store?

[ ] less than 1 year [ ] 1-3 years

[ ] 3-5 years [ ] 5-7 years

[ ] more than 7 years

2. Which brands of chocolates do you keep in your store?

[ ] Cadbury [ ] Kit Kat

[ ] Amul [ ] Snickers

[ ] Schmitten [ ] Hoppits

[ ] 5-star [ ] Munch

[ ] Perk [ ]

Others………………………………..

3. Have you ever sold Schmitten as a brand of chocolate?

[ ] Yes [ ] No

If Yes than go to question no.: 4 If No than go to question no.: 12

4. Describe your selling experience of Schmitten on following criteria

and scale:

Particulars Very good

Good Average

Poor Very Poor

Product Awareness

Consumer acceptance

Product quality

Product taste

Price

Packaging

Margin

5. Compare the brand of Schmitten along with available brands of

chocolate on following scale:

Particulars Cadbury Schmitten Nestle Amul Mars

Quality of product

Product variants

Good in taste

Attractive package design

Small units

Price

Service of distributors

Promotional offers

6. Which of the following chocolates brands do you prefer to sell among customer on following scale:

[5 - Mostly Preferred, 4 - Preferred, 3 - Neutral, 2 - Less Preferred, 1 - Not Preferred]

Particulars 5 4 3 2 1

Cadbury Dairymilk

Nestle Kit Kat

Schmitten

Amul

Mars

7. Share your overall experience of selling Schmitten on following scale:

[ ] Very satisfactory [ ] Satisfactory

[ ] Neutral [ ] Dissatisfactory

[ ] Very dissatisfactory

8. How long do you see yourself associated with the Schmitten brand?

[ ] I will always sell as long as Schmitten brand is available.

[ ] It depends on brand performance in coming time.

[ ] I cannot commit long time.

9. Are you willing to sell other products of Schmitten?

[ ] Yes [ ] No

10.Will you recommend others to sell Schmitten brand?

[ ] Yes [ ] No

[ ] Can’t say

11.Do you find any scope of improvement in Schmitten?

[ ] Yes [ ] No

If yes than in which area,

[ ] Package Design [ ] Taste

[ ] Price [ ] Margin structure

[ ] Promotional activity [ ] After sales services

[ ] Service of distributor

12.Why have you not sold the Schmitten yet, state the reasons:

[ ] I was not aware about the brand of Schmitten.

[ ] Nobody has ask me about the Schmitten.

[ ] I find better alternative brands of chocolate.

[ ] I find less margin compare to other brand.

[ ] If other please specify………………………………………

13. If company able to work on above mentioned issues, will you be

ready to sell Schmitten from your store?

[ ] Yes [ ] No

[ ] Can’t say

14.Would you like an executive from Schmitten to contact you for the

same?

[ ] Yes [ ] No

[ ] Can’t say

Personal ProfileRetail Store Name:

………………………………………………………………………...…

Contact No : …………………………E mail: ………………….

…………………..

Type of Store : ………………………… Area:

………………………………………