SURVEY REPORT OF PRODUCT VS PRICE ON SNACKS (NAMKEEN)

CONTENTS
TOPIC 1. TITLE
PREFACE ACKNOWLEDGEMENT CERTIFICATE DECLARATION

PAGE NO.

2.

CHAPTER-1INTRODUCTION HISTORY OF SNACKS INDUSTRY TYPES OF SNACKS TOP 3 COMPANIES OF SNACKS A. HALDIRAM B. LEHAR C. GARDEN

3. 4.

CHAPTER- 2 OBJECTIVES CHAPTER-3 RESEARCH AND METHODOLOGY RESEARCH METHODS DATA COLLECTION METHOD PRIMARY SOURCES

5. 6. 7. 8. 9. 10.

CHAPTER-4 DATA ANALYSIS & INTERPRETATION TABLE AND GRAPHS

CHAPTER- 5 SWOT ANALYSIS CHAPTER- 6 SUGESTION AND LIMITATIONS CHAPTER- 7 CONCLUSION AND RECCOMENDATION BIBLIOGRAPHY CUSTOMER QUESTIONNAIRE

INTRODUCTION
India is one of the worlds major food producers but accounts for less than 1.5 per cent of international food trade. Food exports in 1998 stood at US$5.8 billion whereas the world total
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was US$438 billion. The Indian food industrys sales turnover is Rs. 140,000 crore annually as at the start of year 2000. Exports of food products can become a valuable growth driver for the Indian food industry, leveraging the historic base and new specialty categories where India has great potential to emerge as a strong brand abroad, according to the latest update on the industry by McKinsey The report, released on Monday at Foodpro 2003, the exposition organized in Chennai by the Confederation of Indian Industry, has identified emergence of an organized retail sector, value additions and convenience driven by consumers, India's growing acceptance as souring hub and continued deregulation of the food sector as the four positive trends. It pointed out that mass market of basic foods, value added foods and exotic foods and their exports were the main opportunities for the Indian food industry adding that there will also be a significant growth in terms of input providers, logistics suppliers and retail. Indian snack food industry comprises of many Indian as well as MNCs. The Indian snack market reached a value of $307.7 million in 2001. It is one of the largest snack markets in the Asia-Pacific region. Only Australia, China, Japan and South Korea have won greater revenue from the sale of snacks. India contributes three percent to the total Asia-Pacific snack market revenue.

HISTORY

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Indian snack food industry comprises of many Indian as well as MNCs. The Indian snack market reached a value of $307.7 million in 2001. The Indian snacks food market is of the order of 400,000 tones. This wide range of products are categorized under Potato / Banana Chips, Namkeens & Fun-Foods. The organized market for chips is estimated to be 6500 tons valued at Rs.2 bn. The market for branded chips has been growing at a fast pace of around 20-25 % annually. Since the majority of MNC's entered their venture in Ready-To-Eat Snacks & Namkeens. The project was conducted to study the overall industry for Ready-To-Eat Snacks & Namkeens. The research was conducted to study the actual buying behavior of the consumers and their preference for such a category of food. Research methodology being exploratory research Questionnaire method to interview consumers as well as retailers was adopted. Retailers were surveyed to know the actual market behavior, whereas the consumers were surveyed to know their preference and factors affecting their purchase. Secondary data on industry is collected through Internet, magazines & by visiting the people in the industry. The Research was a good experience & the final conclusion is that the consumers generally associate Ready-To-Eat Snacks & Namkeens with Time Pass. Majority of them prefers wafers to be their first choice with Fraiams being the second preference. Namkeens on other hand are usually preferred as hunger quencher and are eaten whenever the consumers are hungry. Ready-To-Eat Snacks & Namkeens are generally considered as take away food and hence the consumers generally buy 1-2 packs and does not store them. Through the research it was concluded that the consumers want even POPCORN to be included in this category which is also an opportunity for the manufacturers to launch a new product and extend their product width. Overall the industry is grooming and has vast opportunity to be cashed for the manufacturers.

CATEGORIES & PRODUCTS OVERVIEW

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POTATO CHIPS: MARKET PLAYERS: BRANDS PRODUCTS Salted Rs. 5/Masala Per 16 Gm (American Crme & Onion) Tangy Tomato (Australian Surprise) Red Chili Chatka Rs. 20/Hot & Sweet Per 100 Gm Cilantro Rs. 10/Per 32 Gm Stride Packed in Aluminum vacuumed Packs with pre-printed Brand Name & Logo, Item Name & Package Details and MRP and Expiry Date PRICE RANGE PACKAGE

FRITOLAY'S

Premium Salted Premium Spicy GARDEN Potato Salty Katli Potato Spicy katli Premium Salted JANTA Premium Spicy Rs. 100 /Per Kg Per Kg Rs. 120 /-

Packed in Polly Propane Plastic Pouch with pre-printed Brand Name & Logo, Item Name & Package Details and MRP and Expiry Date Packed in Polly Propane Plastic Bags With Brand Name and Price Tags.

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Potato Salty Katli Potato Spicy katli BANANA CHIPS:

MARKET PLAYERS:

BRANDS

PRODUCT Black Pepper

PRICE RANGE Rs. 120 /-

PACKAGE Packed in Polly Propane Plastic Pouch with pre-printed Brand Name & Logo, Item Name & Package Details and MRP and Expiry Date

GARDEN

Salty Yellow Per Kg Spicy Red Black Pepper Rs. 100 /-

JANTA

Salty Yellow Per Kg Spicy Red Black Pepper Rs. 80 /-

Packed in Polly Propane Plastic Bags With Brand Name and Price Tags.

OTHERS

Salty Yellow Per Kg Spicy Red

Packed loose in plastics bags

NAMKEENS: MARKET LEADERS: BRANDS FRITO'SLEHAR PRODUCTS Alu Bhujia PRICE RANGE Rs. 20/PACKAGES Packed in Aluminum vacuumed Packs with

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Bikanari Bhujia Gujarati Khatta Metha Navratna Mix Natiyams (Moong Punch) Dal Masala

Per 200Gm

pre-printed

Brand

Name, Item Name, MRP and Expiry Date

Rs.20/150Gm

Rs.5/30 Gm

HALDIRAMS

Alu Bhujia Bikanari Bhujia Mix Farsan Chevada Spicy / Salty Sev Rs.42/400 Gm Rs.20/200 Gm Rs.3/30 GM

Packed in Aluminum vacuumed Packs with pre-printed Brand Name

SM FOODSPEPPY NAMKINS

Bhujia Chevada Sev Rs.5/50 Gm Packed in Aluminum vacuumed Packs

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Nadyadi Chevada Sev GARDENS Chevada Mix Farsan Sev OTHERS Chevada Mix Farsan Rs.60 / Kg Packed In plastic Packs Per Kg Rs.60/80 Packed in Polly Propane Packs With Brand name & MRP.

FUN-FOODS: MARKET PLAYERS : BRANDS PRODUCTS Masala FRITOKURKURE Twistys Red Chili Chatka Peppy Cheeseballs Peppy Ringos SM FOODS Piknik Corn puffs PEPPY Peppy Hi protein crispies Peppy Minerette Rs.10/33 Gm Rs.5/15 Gm Packed in Aluminum PRICE RANGE Rs.5/22 Gm Rs.10/55 Gm Rs.20/140 Gm Packed in Aluminum PACKAGES

vacuumed Packs

vacuumed Packs

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BONKERS

Cheeseballs Salty FRAIAMS

Rs.5/30 Gm

Packed in

Aluminum

vacuumed Packs Packed in Plastic Bags

OTHERS Spicy FRAIAMS

Rs.5/75 Gm

PRODUCTS OF NAMKEEN SNACKS 1. HALDIRAM NAMKEEN

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2. LEHAR NAMKEENS

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3. GARDEN NAMKEENS

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OBJECTIVES
Factors affecting the buying pattern of the consumer for Ready-To-Eat Snacks & Namkeens. Find out the consumers buying habits. Find out the consumer's future requirements. To study the overall Ready-To-Eat Snacks & Namkeens industry.

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RESEARCH METHODOLOGY Meaning of research Research methodology is a careful investigation or inquiry and especially for search for new fact in any branch of knowledge. The research word is a combined word of two words first is re and second is search means to search again. The main function of search is to add new knowledge in simple words research can be defined as critical investigation search fort truth fact or for certainly

RESEARCH DESIGN Research design is purely the framrwork or plans for study that guids the collection and analysis of data .A good research design has the chareteristics,problem of defination ,specific method of data collection and analysis time require for research project and expenses to be incurred. R esearch designe is the a arrangement of conditions for collection and analysising data in a manner that aims to combine relevance purpus .
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TYPES OF RESEARCH Exploratory research design-Exploratory research in which new relationship are discovered .it is considered mainly with achivement of new insight or discovery of new ideas. Analytical research design-The research in whish the research can collest data through observation doing field work, conducted personal interviews with the respondants The type of research design used by us in the project is: Exploratoryresearch design

SAMPLE Sample is a subset of population that represent the entire group of population .ti is a portion ,part,and segment that representative the whole. SAMPLE SIZE:
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Total sample size 50

SAMPLE UNIT: The area from where data and information is collected or field work is done is sample unit.In this project sample unit is sagar city.

DATA COLLECTION METHODS:The data used for this research have been collected from both the primary and secondary sources. SECONDARY SOURCES:The secondary data is collection from other secondary sources such as

internet,perivous reports, news papersmagazine,etc PRIMARY SOURCES: Data observed or collect directly from first hand experience ,collect first timeis called primary data
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Primary data is collected using questionnaire from personal interviewing. Field work is a general descriptive term for collection of raw data.

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DATA ANALYSIS
A. CONSUMER SATISFACTION TOWARDS SNACKS 1. 2. 3. 4. RATES FLAVOUR TASTE QUANTITY 18 7 12 13

18 16 14 12 10 8 6 4 2 0

18 12 7 13 Series1

RATES 1

FLAVOUR 2

TASTE 3

QUANTITY 4

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B. INFLUENCE BY WHICH MEANS TO PURCHASE

1. 2. 3. 4.

NEWS PAPER NEIGHBOURS TV HOARDINGS

12 7 22 9

25 20 15 10 5 0 NEWS PAPER NEIGHBOURS 1 2 12

22

9 7

Series1

TV 3

HOARDINGS 4

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B. COMPARISION BETWEEN BRANDS 1. 2. 3. HALDIRAM NAMKEENS LEHAR NAMKEENS GARDEN NAMKEENS 27 13 10

10

1 HALDIRAM NAMKEENS 2 LEHAR NAMKEENS 27 13 3 GARDEN NAMKEENS

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D. PRICE DIFFIRENTIATION TOWARDS PRODUCT S.NO 1. 2. 3. NAME OF THE PRODUCT HALDIRAM LEHAR NAMKEENS GARDEN NAMKEENS 150 GMS 30 24 22

150 GMS

22 30 1 HALDIRAM 2 LEHAR NAMKEENS 3 GARDEN NAMKEENS

24

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E. PREFERENCE OF DIFFERENT AGE GROUP PRODUCTS / CONSUMERS HALDIRAM LEHAR GARDEN CHILD 7 2 35 YOUNG 15 39 9 OLD 28 9 6 TOTAL 50 50 50

HALDIRAM
7 15 CHILD 50 YOUNG OLD TOTAL 28

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SWOT ANALYSIS OF SNACKS INDUSTRY Strengths Abundant availability of raw material Vast network of manufacturing facilities all over the country Vast domestic market Urbanisation

Weaknesses Low availability of adequate infrastructural facilities Lack of adequate quality control & testing methods as per international standards Inefficient supply chain due to a large number of intermediaries

Opportunities Rising income levels and changing consumption patterns Favourable demographic profile and changing lifestyles Opening of global markets
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Threats Affordability and cultural preferences of fresh food High inventory carrying cost High taxation High packaging cost Competition between national and regional players

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SUGGESTIONS AND LIMITATIONS

The Growth rate of Fun-Foods Market is expected to grow by 8% whereas market for Potato Chips is expected to grow by 9.3% by the end 2006-2007. Demand of Potato Chips/ Namkeens is expected to reach 790 thousand Metric Tonnes whereas For Fun-Foods is expected to reach Rs. 50 bn by the end of 2006-2007. Uncle Chipps a Delhi based food products company has an annual turnover of Rs600mn. Garden Foods has a daily sales turnover of around 8-10 thousand-kg. Britannia Industries Ltd has introduced a new range of traditional Namkeens called Britannia Snax in Mumbai. Targeted at the youth segment, the new range includes seven varieties of traditional Namkeens like `Bikaner ki Bhujia' and `Rajas-thani Alu Bhujia'. The new range is priced between Rs 5 and Rs 20.

LIMITATION The survey can not be termed 100% accurate. The statistical analysis might have errors.

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CONCLUSION & RECOMMANDATION

Ready-to-eat snack food industry is quiet a potential market with consumers not being brand loyal there is always a scope for new entrants with new innovative products. Consumers generally like to try some new products emerging in the markets. There are no recognized brands in Banana Chips in India, which is a highly potential market. Products like Popcorns have not yet touched the Indian market i.e. there are no branded popcorn packs, which can be persevered for few days. Small-unorganized local manufacturers capture the majority of the market share in 14-bn snacks food industry. Branded players have attractive packaging to woo the consumers, which in turn increases their prices in comparison with their regional counter-parts. Companies keep on coming up with new schemes like a pack of 100Gm free with 2Kg etc. recently companies have also started given freebies along with the product for e.g. the companies give free Tattoo with the packs to attract Kids. Due to lack of brand loyalty product reach and availability is most important for increasing the market share, so Distribution channel plays a major role. Companies need to encourage their distributors with some incentives or gifts. Companies should provide proper training on marketing and sales to their Distributors as well as Sales Force. Overall ready-to-eat snack food market is estimated at 350,000 ton, of which the organized market for chips is estimated to be 6500 tons valued at Rs2bn. The market for branded chips has been growing at a fast pace of around 20 per cent. Today the companies are entering more into Namkeens category as there are very few players and the Namkeens are of regional tastes.
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QUESTIONAIRE FOR RETAILERS

1. Which of these Ready-To-Eat Snacks & Namkeens is most preferred by consumers? Wafers Namkeens Fraiams

2. Which of these do the consumers mostly prefer? Branded Snacks Unbranded Snacks Any of These

3. Does the consumers asks for the particular flavour or they prefer any flavour? Yes, they do ask for particular flavour. Yes, they do ask for particular flavour but if not available prefer whichever is available. No, they accept whichever flavour is available.

4. What is generally preferred by whom? Wafers preferred by _________________________________________.

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Fraiams preferred by _________________________________________. Namkeens preferred by _________________________________________.

5. Which size of pack do the consumers generally prefer? 16 gms 32 gms 100 gms 500 gms 1kg

6. Which of this brand do you store? Ruffles Lays Haldirams Garden Janta

7. What number of packs do the consumers generally buy? 1-2 3-4 5-6

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QUESTIONAIRE FOR CONSUMERS

1. What do you prefer to have as Ready-To-Eat Snacks? Wafers Namkeens Fraiams

2. With what do you associate Ready-To-Eat Snacks & Namkeens? Time Pass Tasty Food Hunger Quencher Just like Other

3. When do you generally have Ready-To-Eat Snacks & Namkeens? Whenever Feel Hungry. During Movies or while watching TV. Any Time of the day.

4. Do you store Ready-To-Eat Snacks & Namkeens? Yes

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5. Rate the products from 1-3 among as per your preference (With 1-most preferred 3-least Preferred)? Wafers Namkeens Fraiams

6. Which of this brand do you store? Ruffles Lays Haldirams Garden Janta

7. How often do you buy such Ready-To-Eat Snacks & Namkeens? 1-2 a week 3-4 a week 5-6 a week On Regular Basis

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BIBLIOGRAPHY
1. www.gogle.com 2. www.wikipedia.com 3. www.scribd.com

NEWSPAPERS:
Business Standard Economic Times

[Type text]

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