AGRO BASED FMCG PRODUCTS

Chapter 1

Executive summary
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a wellestablished distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry Objective The dissertation has been done to study in detail, a very high prospective part of FMCG products known as agro products. The project covers market analysis of major players of this industry in the following category of agro products 1. Milk and milk products, 2. Biscuits, 3. Jam, ketchups and pickles. Market analysis of major player of that particular category is taken as the base for identifying or deciding of feasibility of entrance in that particular sector.

The project provides insight to a domestic player or small investor about the scope of entrance in agro based industry in India through the recommendation and conclusions. Based upon the study and data collected through primary data collection method

Project aims to study on following aspects

1 2 3 4 5 6 7 Detail analysis and Competitive Study of major agro based FMCG players in a particular product category Measurement of Brand awareness and brand perception Distribution network and channelization Study Market share of players in product category and market forecasting Consumer Perception and distributor Survey Scope determination and identifying prospective category for investments Development of business plan for feasible product category.

The study has been carried out in following steps:

Step 1: Analyzed agro industry and what are the market share and coverage by major players in different category Step 2: It is required to find out the factors affecting buying decisions of distributors and customers directly or indirectly. Step 3: It is required to approach customer and dealers and understand there expectations from the company and product Step 4: It required the Researcher to identify the areas which category entrance is very likely to be possible on the basis of the dealers and consumers responses and perception. Step 5: Using quantitative and qualitative analysis.

Chapter 2 RESEARCH METHODOLOGY

DEFINITION & SCOPE OF THE PROJECT

Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year of FMCG generally include a wide range of frequently purchased consumer products such as Toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. .In 2007, the Rs. 68,000-crore FMCG segment was one of the fast growing industries in India. According to the AC Nielsen India study, the industry grew 7.3% in value between 2006 and 2008

Market share of agro products in their agro fmcg product ccategory

Milk and milk products 25%

Coffee and tea

22%

Wheat products

31%

basmati

7%

Ketchup and jams

12%

others

3%

Source:IMCR

The research was conducted to gather following measurable aspects:

1. Sales and market share of players in different product category. 2. Market coverage and visibility of different players in their product category 3. Consumer purchase influencing factors 4. Cost analysis for identified category for entrance 5. Market survey for the potential category of investment 6. Is the investment in the decided category of product is justified? CONCEPTUAL REVIEW OF THE PROJECT AREA The following matter was chosen for the study: Detail analysis and Competitive Study of major agro based FMCG players in a particular product category Measurement of Brand awareness and brand perception

Distribution network and channelization Study market share of players in product category and market forecasting Consumer Perception and distributor Survey scope determination and identifying prospective category for investments development of business plan for feasible product category Sales and market share of players in different product category. Market coverage and visibility of different players in their product category Consumer purchase influencing factors Cost analysis for identified category for entrance Market survey for the potential category of investment

2.1: Primary Objective(s)

Method of research

Since more than one category of products are involved in analysis so different means of quantitative and qualitative approach has been used according to convenience in analyzing different payer which include 1 2 3 4 5 AMUL - category : milk and milk product ITC - biscuits

PARLE - biscuits SURYA FOODS- biscuits KISSAN-ketchups

6 7 8

MAGGI - ketchups TOPS- ketchups pickle PRIYA- pickle

Business plan

ATS agro ltd (hypothetical) category: jam, ketchups ,pickle Category 3 include a construction of a complete business plan covering following aspect Type of organization: small scale agro based Minimum capital required: 25lakh(excluding land and building) Product category studied : ketchup, jam ,pickle Type of market : established but opportunistic Area covered by major players : 42% Market visibility 93% No of organized small players : scattered

Project analysis:
Phase 1 Production Listing of machineries Factory space requirements

Minimum area required Waste management Factory specimen Expansion scope

Phase 2 Market analysis and forecasting Method of entrance Consumer behavior measurement using questionnaire and graphs.

Phase 3 Financial analysis Project design cost Funding of project Project costing Subsidies Employee expenses estimation Pay back analysis

NOTE:
Nestle is not taken for research in cateogry1 because it uses tetra packaging for its most of products and tetra packaging require at least 10crore of investment and hence it is not feasible for small entrants .

2.2 Hypothesis:
Null Hypothesis There is no significant scope of entrance for small player in any category of agro product because there is no significant difference between the mean of sales by major players and their mean of market share in a particular product category . Alternate Hypothesis There is significant scope of entrance in the agro based industry for small players since there is significant difference between the mean of sales by major players and their mean of market share in a particular product category .

2.3 Research Design

The following research design was chosen for the research:Type of Research Design The Research Designs used for this Research are Descriptive and Exploratory Research Design but data analysis method was differentiated on the basis of product category Category 1 milk and milk products Category 2 biscuits Category 3 - jam ketchups and pickle (A) Exploratory Research Design First Phase of research consists of: The survey of concerning literature The experience based survey

Discovering of ideas and insights. Flexible approaches towards research

(B) Descriptive Research Design Second Phase of Research consists for clear instructions and planned focused path Pre-Planned research design for analysis. Advances instructions about instrument of data collection. Regression analysis is used for calculating market penetration.

2.4 Information Needed

The information needed can be classified into the following heads:Primary Dealers and end users perception about new entrants in pickle jam ketchup industry. Secondary; Detail study about the major players in a particular product category, other study and researches related to Indian FMCG industry agro based. Sources of secondary data The secondary data was collected from research journals, Company websites and visit to competitors and collecting informative booklets.

DEVELOPED THE RESEARCH FRAME:

This includes deciding upon various aspects for the project on which the entire research is based. The research frame included based on different category:

2.5 Scaling Techniques

Two kinds of scaling techniques were used in the questionnaire: Ranking Scale Consumers make relative judgment against other similar objects (Comparative Scales)

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They were present with several factors influencing decision making while buying a laptop. Dealers were present with several factors influencing customer decision making of purchasing a laptop. Likert Scaling Respondents were presented with five response categories ranging from strongly agree to strongly disagree and asked to respondent according to their experience. Analysis technique Regression analysis for market share and sales is used in category 1 Screen plotting for analyzing market penetration in category 1 Construct & Model/Theory in category 1 Random sampling and simple mean method in category 2 and 3 Questionnaire Design and pre testing Keeping in mind the information required for achieving the objectives of the research, questionnaire was developed and Pre tested on a small sample of 50 respondents chosen on a convenience basis .The questionnaire was a blend of following type of questions: Questions generating classification and identification information (Name, Sex, Age group, Profession, income group, City) Dichotomous and multiple choice questions Open- Ended questions were put in to get the views of the respondents at large Codes were assigned to response of classification questions and to the rating questions

2.6 Sampling Techniques

Sample Unit The sample unit for research comprises of: End user of different clusters

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Dealers of different clusters

Sample Size The sample size for study was 100 respondents and 450 dealers from different clusters comprises of different zones of Delhi, Where list of retail outlets, along with their addresses and route maps, as provided by the distributors.

Sampling Procedure
we selected various respondents that comprises of End user on simple random sampling method and distributor provided data. Data Analysis and representation The data collected was analyzed differently in each category One category used regression analysis while other used simple statistical measures and frequency distribution The average ratings of performances were arrived at by taking out the simple average of the sum of the rating given to a particular performance parameter. The representation was done using graphs and charts and scree plotting.

Field work
3.1 Markets Visited 1 East Delhi 2 West Delhi 3 South Delhi 4 North Delhi The different customers whom the distributor serves can be classified as: Grocery

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 General/ Stationery shops Pan/Beedi Shops Superstores, housing all types of product categories Chemist/Druggist Confectioneries Multi Format Stores (MFS),e.g. Big Bazaar,Spencers,etc. Food Stalls Hotels & Restaurants Canteens Tea Shops AMUL parlours Ice cream & Soft Drinks Shops(IC/SD) Coffee Shops The outlets are also classified by their locations. The various location segments are as follows: Airport Bus Stand Railway Station Picnic Spot Cinema Hall Hotel, Caterer & restaurant School/College

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 Highway Market Place Main Road Office/BPO Petrol Pump Institution Shopping Mall

Scope of Research
The research was conducted in two phases first analyzing of all categories two determine scope of entrance second phase included constructing of a business plan Limitations 1 2 3 4 5 6 7 The research was conducted in Delhi only selected cities so it cant be generalized for Indian Market Few questions in are not answer by respondents Lack of area knowledge so it was difficult to locate dealers and end users This study need more time and need to approach more areas for more accurate responses Competitors manager and sales persons sometimes hesitate to provide any internal information. Dealers and end users are busy in their schedules so there is lack of time Niche market for each category was not differentiated.

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Chapter 3: Critical review of literature

TITLE: GOWTH ANALYSIS OF FMCG SECTOR SOURCE: SURVEY BY TATA INVESTMENT CORPORATION YEAR: 2008 TATA Investment Corporation Limited, invested in long-term investments in equity shares and in a wide range of industries. TICL invested in almost all the sectors. TICLs portfolio proved to be a very successful portfolio. They had got a very good return from all the sectors. Among these sectors, Fast-Moving Consumer Goods (FMCG) proved to be a very successful sector. It has a very good potentiality in long term in India and on May 20, 2008, this investment valued Rs. 306.72 crores investment in FMCG sector was 5% of the overall

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investment that was increased in 2008 to 15%of the overall investment. Thus from this, we can value of investment. For this sign malls, etc. in India, the FMCG sector is one of the booming had chosen this sector for my equity analysis. Below, I had given detail investment of TICL in FMCG sector: analyzed non-banking financial company registered with Reserve Investment Company' category. The company's activities comprise other securities of companys portfolio. The overall cost of investment in FMCG sectors, i.e. the cost of value of conclude that, there is a 2140.47%significant increase and also recent development of retails shops, sectors in India.

WHY INDIAN MARKET?

Large domestic market India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million.

India - a large consumer goods spender An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes Rural and urban potential Rural urban profile urban Population 2001/02 mn household Population mn 2009/10house hold 53 69 rural 135 153

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% distribution Market / towns Universal outlets ofIndia(20062007)NCAER

28 3768 1

72 627000 3.3 Source :satatiscal outline

Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total numbers of rural households are expected to rise from 135 million in 2001-02 to 153 million in 2009-10. This presents the largest potential market in the world. The annual size of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-02. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. Demand-supply gap Currently, only a small percentage of the raw materials in India are processed into value added products even as the demand for processed and convenience food is on the rise. This demand supply gap indicates an untapped opportunity in areas such as packaged form, convenience food and drinks, milk products etc. In the personal care segment, the low penetration rate in both the rural and urban areas indicates a market potential.

CHANGE IN INDIAN CONSUMER PROFILE

Consumer profile Population(millions) Population<25yr of age Urbanization (%) 2001 946 422mn 26 2004 1012 546mn 28 2008 1187 587mn 32

Source: Statistical outline of India Rapid urbanization, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Around 45 per cent of the population in India is below 20 years of age and the young population is set

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to rise further. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mindset.

TITLE:

TREND VARIATION OF FMCG INDUSTRY

SOURCE: ECONOMIC SURVEY OF INDIA YEAR : 2008

The Structure The Indian FMCG sector is the fourth largest sector in the economy and creates employment for three million people in downstream activities. Within the FMCG sector, the Indian food processing industry represented 6.3 per cent of GDP and accounted for 13 percent of the country's exports in 2008-09. A distinct feature of the FMCG industry is the presence of most global players through their subsidiaries (HUL, P&G, Nestle), which ensures new product launches in the Indian market from the parent's portfolio.

Critical Operating Rules in FMCG Sector

Heavy launch costs on new products on launch advertisements, free samples and product Promotions. Majority of the product classes require very low investment in fixed assets. Existence of contract manufacturing. Marketing assumes a significant place in the brand building process. Extensive distribution networks and logistics are key to achieving a high level of penetration in both the urban and rural markets. Factors like low entry barriers in terms of low capital investment, fiscal incentives from government and low brand awareness in rural areas have led to the mushrooming of the unorganized sector.

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Providing good price points is the key to success.

Rural Markets: Small is Beautiful By the early nineties FMCG marketers had figured out two things: Rural markets are vital for survival since the urban markets were getting saturated. Rural markets are extremely price-sensitive.

Household Income Distribution Thus, a number of companies followed the strategy of launching a wide range of package sizes and prices to suit the purchasing preferences of India's varied consumer segments. Hindustan Unilever, a subsidiary of Unilever, coined the term nano introduced its products in small sachets. Small sachets were introduced in almost all the FMCG segments from oil, shampoo, and detergents to beverages.

Demand for FMCG products is set to boom by almost 60 per cent by 2007 and more than 100 % by 2015. This will be driven by the rise in share of middle class (defined as the climbers and consuming class) from 67 % in 2003 to 88 per cent in 2015. The boom consumer

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categories, further, indicates a latent demand for various product segments. For example, the upper end of very rich and a part of the consuming class indicate a small but rapidly growing segment for branded products. The middle segment market for the mass end TITLE : INVEST OPPURTUNITIES

SOURCE: FCGMR (FEDERATION OF CONSUMER GOODS MARKET RESEARCH) REASERCH PAPER YEAR : 2003

Measuring the Opportunity: Domestic FMCG Market to treble According to estimates based on China's current per capita consumption, the Indian FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. The dominance of Indian markets by unbranded products, change in eating habits and the increased affordability of the growing Indian population presents an opportunity to makers of branded products, who can convert consumers to branded products.

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Sectoral Opportunities According to the Ministry of Food Processing, 200 million people expected to shift towards processed and packaged food by 2010, India needs around US$ 28 billion of investment to raise food processing levels by 8-10 %. In the personal care segment, the lower penetration rates also present an untapped potential. Key sectoral opportunities are mentioned below: Staple: Branded and Unbranded: Investment in branded staples is likely to rise with the popularity of branded rice and flour among urban population.

TITLE: CATEGORY SIZE SURVEY SOURCE: ICAMR ,2009

FMCG Market Size (US$ billion)

Dairy Based Products: Investment opportunities exist in value-added products like desserts, puddings etc. The organized liquid milk business is in its infancy and also has large long-term growth potential. Packaged Food: Growth of dual income households, where both spouses are earning, has given rise to demand for instant foods, especially in urban areas. Increased health consciousness and abundant production of quality soya-bean also indicates a growing demand for Soya food segment. Personal Care and Hygiene: Rapid urbanization is expected to propel the demand for cosmetics to 100,000 metric tones by 2011-12, with an annual growth rate of 10 percent. Beverages: According to CIER, demand for coffee is expected to rise to 535,000 metric tones by 2012, with an annual growth rate of 5 per cent between2006-12.

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 Edible Oil: The demand for edible oil in India, according to CIER, is expected to rise to 21million tones by 2011-12 with an annual growth rate of 7 per cent per annum. Confectionary: The explosion of the young age population in India will trigger a spurt in confectionary products. In the long run the industry is slated to grow at 8 to 10 per cent annually to 870,000 metric tones by 2011-12.

Chapter 4: Organization AGRO PRODUCTS

Category 1: Milk and milk products

COMPANY: AMUL INDIA Study objective To understand the market share of AMUL in this product category. Analyzing data to formulate strategy for determine scope of entrance in this category.

Reason for choosing Amul: Large product line in the product category High market visibility Markets Visited A total of nine markets and 451 retailers in Delhi, were visited for the survey of 12 product categories. The basis for selection is: Shops selling at least one of the given product categories.

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 The shops falling under the domain of a given distributor.

1. THE ORGANIZATION
AMUL (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. Headquartered in the small town of Anand, Gujarat, it is a brand name managed by an apex cooperative organization, Gujarat Cooperative Milk Marketing Federation (GCMMF). Specializing in dairy products, AMUL now takes pride in having built the largest food product business in the country. Being a part of the Gujarat Cooperative Milk Marketing Federation (GCMMF), AMUL is a sterling example of cooperative achievement in the developing world. AMUL survives and grows on the basis of cooperative culture, cooperative networking, market acumen and respect for both producer and the consumer. Presently, it is the most popular food brand of India. History: AMUL was formally registered on December 14, 1946. Started by Dr. Verghese Kurien in the small town of Anand, Gujarat, AMUL has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. Vision The vision of AMUL is as follows: To serve the interests of the milk producers To provide quality products that offer the best value to consumers for money spent

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1.1

Areas of Operation

Besides India, AMUL has entered overseas markets such as Mauritius, UAE, USA, Bangladesh, Australia, headed by Mr. Parthi Bhatol. 1.2 Some Facts: China, Singapore, Hong Kong and a few South African include Sri Lanka. AMUL is currently nations. Other potential markets being considered

Annual Revenues: $1.33 billion USD Members: 13 district cooperative milk producers` union No of Employees: 2.7 million No of village societies: 13,141 Total Milk handling capacity: 10.21 million liters per day Annual Milk Collection: 2.69 billion liters Daily Milk Collection: 7.4 million liters Milk Drying Capacity: 626 Mts. Per day Cattle feed Manufacturing Capacity: 3090 Mts. Per day 1.3 Products

AMUL markets the following products: Bread spreads AMUL Cheese AMUL Mithaee UHT Milk Pure Ghee Infant Milk AMUL Milk Powder

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 AMUL Mithai Mate AMUL Fresh Milk AMUL Curd Products AMUL Ice creams Chocolate and confectionery Brown Beverage Milk Drink Health Beverages

1.4

Achievements

AMUL has achieved the following landmarks: AMUL is the largest food brand in India AMUL is the world`s largest pouched milk brand. AMUL is the world`s largest vegetarian cheese brand

2. DISTRIBUTION NETWORK GCMMF Head office Manufacturing

First leg

(from manufacturing units)

Depot.. Retail1 WD1 .1

Depot.. Second Third leg leg Retail.. WDn .n

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Downstream Flow

Procurement Channel

Distribution

GCMMF Head office

2.1

The Network

MU1 MU...n Milk is procured from the villages and collected at Village Cooperative Societies (VCS), from there the milk is taken to manufacturing units where the milk is processed into various products. The products are then transporters to the company Depots located in various parts of the country. The products are then sent to Wholesale Distributors (WD) and from there to the retailers. VCS1 VCSn Upstream Channel in which milk is procured from the farmers to the manufacturing units.

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Upstream Village

flow

Village

1. In the first step, the milk is taken to the VCS by the farmers on foot or bicycles in small quantities 2. The second step involves the transportation of milk from the co-operatives to the manufacturing units this is done in special trucks which are equipped with tankers to carry milk.

Downstream Channel is the distribution part of the supply chain from the manufacturing units to the retailers. 1. First leg of transport is from the manufacturing unit to the company depots. 2. Second leg is from the depot to the Wholesale Distributors(WDs). A permanent dispatch plan (PDP) is prepared where the distributor plans out the quantity of various products to be ordered on a particular date. 3. Third leg this is the flow of good from WDs to retailers, a beat plan is prepared and transportation is done on delivery vans. 2.2 Distributor profile APARNA Distributor is one of the largest distributors of AMUL products in Delhi. Aparna distributor employs 5 salespersons to carry out its operations. Apart from AMUL, Aparna also holds the distributorship rights of Nestle, Dabur and BiskFarm.

4.1

Identification of Key Parameters

Estimation of actual sales This information, taken from each retail outlet, will measure the actual daily/monthly sales, in units, of major AMUL products. The cumulative figure will give the actual sales of AMUL products in a particular area under a distributor. Estimation of potential sales This information will give the daily/monthly sales, in units; of each product line (e.g. butter, chocolates etc.) offered by all the major brands. This will serve as potential sales information for AMUL products.

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 Evaluation Metrics for distributors Beat plan: This plan is generated for the various product categories. A weekly schedule is prepared for various markets and retailers. The turnover for each of the products is calculated for the wholesale dealers. Equitable distribution to all outlets Margins offered Outlet coverage Relationship Management

Category 2: Biscuits COMPANY: ITC ,PARLE,SURYA FOODS Indian Biscuit Industry: According to Indian Biscuit Manufacturers' Association (IBMA), after stagnating growth of about 14 per cent in 2006-07, biscuit industry grew by 17 per cent in 2007-08 due to excise duty exemption on biscuits with MRP up to Rs 100 per kg, Indian

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Biscuit Manufacturers Association. ). Therefore, Indian biscuit industry has demanded a reduction in value added tax to four per cent from the current level of 12.4 per cent on biscuit, so that the growth rate can go up to 20 per cent. The Rs 8,000-crore industry hopes that the biscuit segment will have over 20 per cent annual growth in the next five years if VAT is reduced to four per cent India, world's third largest biscuit producer after the US and China, produces nearly 19.5 lakh tones annually and the states, however, have imposed the VAT at 12.5 per cent, which is very high. According to IBMA, organized sector produces around 55% and the balance 45% being contributed by the unorganized bakeries. In terms of volume biscuit production by the organized segment in 2006-07 is estimated at 1.47 million tones. Per capita consumption of biscuits in the country is only 1.8 kg, as compared to 2.5-5.5 kg in the South Eastern countries, and in Europe and US, respectively. In India per capita consumption of biscuits is estimated at a low 1.9 kg, reflecting the huge potential for growth of the industry. THE ORGANIZATION MAJOR BISCUIT PRODUCERSS IN DELHI 1) PARLE PRODUCTS PRIVATE LIMITED. 2) ITC SUNFEAST LIMITED 3) BRITANNIA 4) SURYA FOOD AND AGRO LIMITED (PRIYAGOLD).

PARLE PRODUCTS PRIVATE LIMITED

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Many of the Parle products - biscuits or confectioneries, are market leaders in their category and have won acclaim at the Monde Selection, since 1971. With a 40% share of the total biscuit market and a 15% share of the total confectionary market in India, Parle has grown to become a multi-million dollar company. While to consumers it's a beacon of faith and trust, competitors look upon Parle as an example of marketing brilliance. Parle G, a premium glucose biscuit is the worlds largest selling biscuit. A factory of these glucose biscuits is situated in Neemrana is producing 7000 metric tones every month. A list of premium quality biscuits and confectioneries is produced and distributed across nations.

ITC LIMITED

ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75 billion. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management.

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BRITANNIA

By 1910, with the advent of electricity, Britannia mechanized its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As time moved on, the biscuit market continued to grow and Britannia grew along with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indian ness of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.

SURYA FOOD AND AGRO LIMITED

The wondrous magical journey of the company Surya Food & Agro Ltd. began in Oct. 1993 & since then The Researchers have been one of the leading manufacturers of biscuits in northern India. Our brand PRIYAGOLD has been a perennial household favorite since then. On a profound level spread in to western as well as southern India, the inevitable cycle of distribution network has helped us to spread into western India as well. Our obsession is to make the finest quality biscuits available to the consumers & our constant endeavor is to

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provide our consumers, a palate to look forward to a taste & flavor that is uniquely PRIYAGOLD.

Category 3: Jam, Ketchup and Pickle

Players : Kissan , Maggi ,Hienz , - ketchup Kissan, Heinz, others - jams Priya, Tops, Haldiram, mothers - Pickle

Industry overview
According to ICMR the product category of meal makers known as ketchup jam and pickle have considerable share in the total sales of agro based FMCG products. Ketchup constitutes about 15% where jam and pickle have combined 18% share in the agro based FMCG sector the growth this category came into lime light with the growth of FMCG sector in our country This category have annual turnover of 9800 crore and is estimated is to grow 20% per

annum with growing consumption in rural areas the market scope has been identified because of low cost technology in production and because govt assistance . Although the market has been ruled by players like Kissan, Maggi ,Hienz but still dont have a coverage more than 75% in unorganized market including rural areas so it provide a scope of entrance to small players

MARKET SHARES OF PLAYERS IN JAMS, PICKLES & KETCHUPS

Materials availability India has a diverse agro-climatic condition due to which there exists a wide-ranging and large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits & vegetables. India also has an ample supply of caustic soda and soda ash, the raw materials in the production of soaps and detergents India produced 1.6 million tones of caustic soda in 2003-04. Tata Chemicals, one of the largest producers of synthetic soda ash in the world is located in India. The availability of these raw materials gives India the location advantage. Apart from the advantage in terms of ample raw material availability, existence of low-cost labor force also works in favor of India. Labor cost in India is amongst the lowest in Asian

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countries. Easy raw material availability and low labor costs have resulted in a lower cost of production. Many multi-nationals have set up large low cost production bases in India to outsource for domestic as well as export markets. Labor cost : us $ per year Source DIPP Labor cost per worker China Indonesia India Phillipines Thailand Malaysia Korea Singapore Us$ per year 729 1008 1192 2450 2075 3429 10743 21317

Presence across value chain

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Indian firms also have a presence across the entire value chain of the FMCG industry from supply of raw material to final processed and packaged goods, both in the personal care products and in the food processing sector. For instance, Indian firm Amul's product portfolio includes supply of milk as well as the supply of processed dairy products like cheese and butter. This makes the firms located in India more cost competitive. POLICY India has enacted policies aimed at attaining international competitiveness through lifting of the quantitative restrictions, reduced excise duties, automatic foreign investment and food laws resulting in an environment that fosters growth. 100 per cent export oriented units can be set up by government approval and use of foreign brand names is now freely permitted. FDI Policy Automatic investment approval (including foreign technology agreements within specified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies (OCBs) investment, is allowed for most of the food processing sector except malted food, alcoholic beverages and those reserved for small scale industries (SSI). 24 per cent foreign equity is permitted in the small-scale sector. Temporary approvals for imports for test marketing can also be obtained from the Director General of Foreign Trade. The evolution of a more liberal FDI policy environment in India is clearly supported by the successful operation of some of the global majors like PepsiCo in India. Removal of Quantitative Restrictions and Reservation Policy The Indian government has abolished licensing for almost all food and agro-processing industries except for some items like alcohol, cane sugar, hydrogenated animal fats and oils etc., and items reserved for the exclusive manufacture in the small scale industry (SSI) sector Quantitative restrictions were removed in 2001 and Union Budget 2004-05 further identified 85 items that would be taken out of the reserved list. This has resulted in a boom in the FMCG market through market expansion and greater product opportunities. Food laws Consumer protection against adulterated food has been brought to the fore by "The Prevention of Food Adulteration Act (PFA), 1954", which applies to domestic and imported food commodities, encompassing food color and preservatives, pesticide residues, packaging, labeling and regulation of sales.

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Central and state initiatives Various states governments like Himachal Pradesh, Uttaranchal and Jammu & Kashmir have encouraged companies to set up manufacturing facilities in their regions through a package of fiscal incentives. Jammu and Kashmir offers incentives such as allotment of land at confessional rates, 100 per cent subsidy on project reports and 30 per cent capital investment subsidy on fixed capital investment upto US$ 63,000. The Himachal Pradesh government offers sales tax and power concessions, capital subsidies and other incentives for setting up a plant in its tax free zones. Five-year tax holiday for new food processing units in fruits and vegetable processing have also been extended in the Union Budget 2004-05. Wide-ranging fiscal policy changes have been introduced progressively. Excise and import duty rates have been reduced substantially. Many processed food items are totally exempt from excise duty. Customs duties have been substantially reduced on plant and equipment, as well as on raw materials and intermediates, especially for export production. Capital goods are also freely importable, including second hand ones in the food-processing sector.

Chapter 5: Data collection

Category 1

5.1 Data Analysis Methods The Data Analysis methodology follows two approaches: the quantitative and the qualitative approach. The quantitative approach entails the collection of numerical data from the retailers for potential sales and actual sales of AMUL products, along with the information on stock outs. The numerical data is then analyzed to provide information on: Total Number of outlets Number of outlets of each type Number of outlets in each particular location

35

 Number of outlets storing a particular product category Total monthly demand/monthly category sales for each product category Monthly demand for each AMUL product Stock outs(in percentage) for each AMUL product Market penetration of each product category Market penetration of each AMUL product Market Share(in percentage) of each AMUL product Outlet segment-wise analysis of each AMUL product Outlet location-wise analysis of each AMUL product

The qualitative approach entails the analysis of the above mentioned numerical data for finding the gap existing between potential and actual sales of AMUL products and the causes behind the gap. Based on the findings leading to major causes, strategy is formulated for narrowing the gap. The following tools are primarily used for data analysis, preparation of reports and presentation purposes: Microsoft Excel Microsoft Power point Microsoft Word

Product Packing & Price List

36

Product / Packing BUTTER 60X8X25gm(Chip) 5X250X8.1 gm 150X100 gm 30X500 gm A/Butter School Pack 40x96 A/Butter 10x1kg Blister REDUCED SALT BUTTER 150X100 gm 30X500 gm PROCESS CHEESE 36X400 gm(Tin) NEOE 60x10x20gm Slice 120x5x20gm Slice 12X50X20gm Slice 12X20X2x25gm Cube 60X8X25gm(Chip) 15X20X2x25gm Cube 15X40x25gm Cube Amul Pro.chs.sl 400g(30*400) 36x400gm Block 12X1 Kg (Block) 24x20x25gm Chip 24x20x25gm Chip (24X500) 60x200gm Block CHEESE SPREAD

Cost to RET 2460.2 4 2170.0 0 2755.3 1 2672.8 1 908.76 2288.0 5 2888.4 4 2745.9 4 3307.1 0 3863.0 4 4431.3 6 2202.6 0 2651.0 4 3304.8 0 3313.8 0 3355.8 0 3576.0 0 3138.3 4 2225.0 4 2907.3 6 2539.6 8 3034.3 2

Retail Margin

MRP

MRP pc

cost to Rt/unit

239.76 180.00 244.69 237.19 91.24 211.95

2700.00 2350.00 3000.00 2910.00 1000.00 2500.00

45.00 470.00 20.00 97.00 25.00 250.00

5.13 1.74 18.37 89.09 22.72 228.81

261.56 254.06

3150.00 3000.00

21.00 100.00

19.26 91.53

292.90 336.96 368.64 197.40 228.96 295.20 286.20 304.20 324.00 281.66 210.96 260.64 220.32 265.68

3600.00 4200.00 4800.00 2400.00 2880.00 3600.00 3600.00 3660.00 3900.00 3420.00 2436.00 3168.00 2760.00 3300.00

100.00 70.00 40.00 200.00 12.00 60.00 12.00 244.00 130.00 95.00 203.00 132.00 115.00 55.00

91.86 6.44 7.39 3.67 5.52 6.89 6.90 5.59 119.20 87.18 185.42 6.06 5.29 50.57

37

24x200(all flavour) 24x200 cream Ch.Spread NEW CHOCOZOO 24x264gm 24x232gm 12x500 gm Retub 12x450 gm Chz Tub Amul Chocomini Tub 12x400g CHZ Birthday 60x81g A Chz Hexagon 12x500g Achz House 12x500g Chz Corporate 30x150g Chz Elegantgift 48x93g Chz FourPack 128x36g Amul Chocolate 18x20x35gm Milk 18x20x35gm Milk AMC 18x20x26gm Milk 18x20x35gm F&N 40x150gm F&N 16x20x35gm Almondbar 18x20x30gm Fundoo 18x40x15gm Fundoo 18x20x30gm Bindaz Bndz 18x24x18gm Strb Bndz 18x24x18gm Choc

1038.4 3 1042.1 8 2631.9 6 2464.6 8 1585.9 7 1607.4 0 1285.9 2 1607.4 0 1585.9 7 1585.9 7 1875.3 0 1714.5 6 1143.0 4 3858.0 0 4822.2 0 3214.8 0 5143.6 8 1750.2 8 3429.1 2 3857.7 6 3214.8 0 3857.7 6 1928.8 8 1928.8 8

89.57 85.82

1128.00 1128.00

47.00 47.00

43.27 43.42

368.04 295.32 190.03 192.60 154.08 192.60 190.03 190.03 224.70 205.44 136.96

3000.00 2760.00 1776.00 1800.00 1440.00 1800.00 1776.00 1776.00 2100.00 1920.00 1280.00

125.00 115.00 148.00 150.00 120.00 30.00 148.00 148.00 70.00 40.00 10.00

109.67 102.70 132.16 133.95 107.16 26.79 132.16 132.16 62.51 35.72 8.93

462.00 577.80 385.20 616.32 209.72 410.88 462.24 385.20 462.24 231.12 231.12

4320.00 5400.00 3600.00 5760.00 1960.00 3840.00 4320.00 3600.00 4320.00 2160.00 2160.00

12.00 15.00 10.00 16.00 49.00 12.00 12.00 5.00 12.00 5.00 5.00

10.72 13.40 8.93 14.29 43.76 10.72 10.72 4.47 10.72 4.47 4.47

38

Amul Chocolate REJOICE 60x120gm Rejoice 60x130gm Rejoice 24x295 gm Rejoice 24x256 gm Rejoice Sugar free Chocolate A Sugrfree Min 48x50g PANEER 100X100 gm (P) 50X200gm(P) 14x1 kg (block) 12x1kg AMUL GHEE Amul Ghee 12X1 Ltr(Rf)Amul/Sagar Ghee20X500 ml(S)Amul Ghee 24X500 ml EOE Tin A/GHEE 60X200mlRefAmul/Sagar Ghee 12X1 Ltr - Tin Amul/Sagar Ghee 6X2 Ltr(T) Amul/Sagar Ghee 4x5 Ltr(T) Amul Cow Ghee 12x1 lt Tin NEW Amul Cow Ghee 20X500 ml (Sachet) Amul Cow Ghee 20X500 ml (Sachet) AMULSPRAY 12x20x50gm Pouch NEW 240x50gm Pouch 12x20x50gm Pouch 480x20gm (Pouch) 2182.1 3 2679.0 0 2182.1 3 2143.2 0 1714.5 6 1529.0 0 1440.2 5 1890.0 0 1620.0 0 2158.6 3 1859.2 2 2386.0 2 2323.5 0 2211.2 4 2183.4 1 3497.0 0 2211.2 4 1902.1 2 1959.2 2 2133.8 0 2232.0 0 2232.0 0 2246.4 217.87 321.00 217.87 256.80 2400.00 3000.00 2400.00 2400.00 40.00 50.00 100.00 100.00 36.37 44.65 90.92 89.30

205.44

1920.00

40.00

4.76

171.00 159.75 210.00 180.00

1700.00 1600.00 2100.00 1800.00

17.00 32.00 150.00 150.00

15.29 28.81 135.00 135.00

241.37 100.78 133.98 256.50 248.76 126.59 203.00 248.76 97.88 100.78

2400.00 1960.00 2520.00 2580.00 2460.00 2310.00 3700.00 2460.00 2000.00 2060.00

200.00 98.00 105.00 43.00 205.00 385.00 925.00 205.00 100.00 103.00

179.89 92.96 99.42 38.73 184.27 363.90 874.25 184.27 95.11 97.96

145.20 168.00 168.00 153.60

2279.00 2400.00 2400.00 2400.00

189.92 200.00 200.00 5.00

8.89 9.30 9.30 9.36

39

60X200gm( Pouch) 24X500 gm (Pouch) Kaira Kol 12x1 kg (Pouch) Kaira Kol 24X500gm (Tin) 12X1Kg (Tin) AMULYA CP 24x500gm (P)(5/- off) 240x50gm Pouch 24x120x3gm(120*3g) 24X500 gm (Refil)Rs.5/- off Amul 3x150 Dairy Crim Amul Creamer 5gx100 60X200 gm (Pouch) 12x1kg Pouch 12x1kg Pouch Scheme pack 12X1 KG Rs.12/- off 24X550 gm (Pouch) Scheme pack 24X500 gm (Refil) Taaza WD 24X500 gm (Pouch) Kaira Kolkata M. U. 340x25gm Pouch Amulya 12X1 kg P Tazza Amulya 24X 500 P Tazza Amulya Sch Pk 24x500 (taza free)A500SC MITHAI MATE 50x400 gm Easy Can UHT Lassee Rose

0 2297.4 0 2262.0 0 2057.1 0 2391.0 0 2277.3 0 1380.9 8 2245.2 0 2172.6 7 2234.4 0 2715.8 4 2240.4 0 2355.6 0 1900.8 0 2076.9 0 2212.2 0 2334.0 0 2354.4 0 2018.7 0 1580.1 5 2356.2 0 2334.0 0 1963.8 4 2458.0 0

162.60 162.00 150.90 177.00 170.70

2460.00 2424.00 2208.00 2568.00 2448.00

41.00 101.00 184.00 107.00 204.00

38.29 94.25 171.43 99.63 189.78

107.02 154.80 131.33 165.60 164.16 159.60 164.40 127.20 131.10 151.80 162.00 165.60 141.30 119.85 151.80 162.00 244.16

1488.00 2400.00 2304.00 2400.00 2880.00 2400.00 2520.00 2028.00 2208.00 2364.00 2496.00 2520.00 2160.00 1700.00 2508.00 2496.00 2208.00

62.00 10.00 0.80 100.00 0.80 1.00 42.00 169.00 184.00 197.00 104.00 105.00 90.00 5.00 209.00 104.00 92.00

#REF! 9.36 0.75 #REF! 0.94 0.78 39.26 158.40 173.08 184.35 97.25 98.10 84.11 4.65 196.35 97.25 81.83

242.00

2700.00

54.00

49.16

40

12x1 ltr TB 27x200ml (kewda/Rose) BUTTER MILK 27x200ml TB 12X1LTR NEW FRESH CREAM 27x200ml TB 12x1 ltr TB AMUL KOOL ( ALL FLAVOUR ) 27x200 ml K/E/R/Cho 27x200 ml MANGO 24x200 ml K/E/R AMUL KOOL ( ALL FLAVOUR ) Kool Kesar Fl 24x250ml Can Nutramul Fl Milk 24x220 ml Milk can 24x200 Glass Btl KOOL KOKO Kool Koko 27x200 ml milk Koko Milk 12x1 ltr 24x250ml Cans KOKO 24x200ml Glass bottle KOKO KOOL CAF 24x250ml Cans 27x200ml TB Caf Bottle 24x200 ml AMUL GOLD MILK 12x1 ltr TB 24x500ml TAZZA 12x1 ltr TB 27x200ml SLIM N TRIM 12x1 ltr TB 27x200ml Amul Calci Milk Amul Calc + 12x1 ltr TB Kool Thandai 24x200ml Kool Milk Shake 24*220 Strawberry Milk Kol Banan 24*220ml Milk-GB Mango 24*220ml Milk-GB

386.40 237.60 192.87 331.20 624.08 1107.5 4 285.12 356.40 256.32 469.92 469.92 256.32 356.40 540.00 469.92 316.80 469.92 356.40 316.80 407.04 362.88 373.73 202.46 450.30 179.01 390.00 256.32 469.92 469.92 469.92

33.60 32.40 23.13 28.80 50.92 92.46 38.88 48.60 31.68 58.08 58.08 31.68 48.60 60.00 58.08 43.20 58.08 48.60 43.20 24.96 21.12 22.27 13.54 29.70 9.99 30.00 31.68 58.08 58.08 58.08

420.00 270.00 216.00 360.00 675.00 1200.00 324.00 405.00 288.00 528.00 528.00 288.00 405.00 600.00 528.00 360.00 528.00 405.00 360.00 432.00 384.00 396.00 216.00 480.00 189.00 420.00 288.00 528.00 528.00 528.00

35.00 10.00 8.00 30.00 25.00 100.00 12.00 15.00 12.00 22.00 22.00 12.00 15.00 50.00 22.00 15.00 22.00 15.00 15.00 36.00 16.00 33.00 8.00 40.00 7.00 35.00 12.00 22.00 22.00 22.00

32.20 8.80 7.14 27.60 23.11 92.30 10.56 13.20 10.68 19.58 19.58 10.68 13.20 45.00 19.58 13.20 19.58 13.20 13.20 33.92 15.12 31.14 7.50 37.53 6.63 32.50 10.68 19.58 19.58 19.58

41

Badam 24*220ml Milk Sha-GB Banan 27*180ml Milk-TP Mango 27*180ml Milk-TP Strawbe 27*180ml Milk-TP

469.92 360.45 360.45 360.45

58.08 44.55 44.55 44.55

528.00 405.00 405.00 405.00

22.00 15.00 15.00 15.00

19.58 13.35 13.35 13.35

DATA ANALYSIS
Construct & Model/Theory The construct, in this project, is the estimation of potential demand and the actual demand of AMUL products in a particular area and the reasons for the existence of the gap between the two. This process requires a thorough investigation of the distributorship process of AMUL along with the policies employed by the organization to manage its sales with the retailers. The fulfillment of the objectives is achieved through both the quantitative and the qualitative approach. The quantitative approach involves the collection of numerical data of sales and stock outs of the various products from the retailers. Estimation of demand process consists of measuring the actual monthly sales of a retailer selling AMUL products, the potential monthly sales of AMUL products, i.e. the amount of sales that the retailer can achieve, finding the gap between the two and finally, analyzing the reasons for the existence of the gap. The qualitative approach involves the analysis of the numerical data to find out inferences and to devise a strategy for increasing sales.

TABLES & CHARTS

Cumulative Findings 1. Total Number of Outlets Surveyed: 451

42

Type-wise Distribution of Outlets Grocery General Pan Shop Superstore Chemist Confectionery MFS Food Stall Hotel Canteen Tea Shop Perfume Shop AMUL Parlor IC/SD Coffee Shop

Frequency 166 194 30 2 13 12 9 3 9 2 7 1 1 1 1

43

2. Type-wise Distribution of Outlets: This table states the number of outlets of each type.

3. Location-wise Distribution of Outlets: This table states the number of outlets in each particular location.

44

Locationwise Distribution of Outlets Frequency Main Road 168 Market 122 Alley Petrol Pump Cinema Hall School 123 3 1 5

Temple Complex Shopping Mall

11 5 1

45

4. Distribution of various products: This table states the number of outlets storing a particular product category and the corresponding Amul product(s) in the particular category.

46

Product Butter AMUL Butter InfantMilkPowder AMULSPRAY Milk Powder AMULYA Cheese AMUL Cheese UHTMilk AMUL UHT FreshCream AMUL Fresh Cream Paneer AMUL Paneer Conditioned Milk MethaiMate Ghee AMUL Ghee Chocolates AMUL Chocolates Beverage AMUL Beverages Icecreams AMUL Icecreams

Outlet Frequency 351 350 200 200 396 391 228 225 144 144 115 114 49 45 210 123 283 144 226 124 110 101 58 19

47

5. Total Sales: This table states the monthly sales figures of a particular product category. The Category Sales value gives the total monthly sales of a particular product category, which serves as the market potential. The Amul Sales value gives the monthly sale of the Amul products falling in that product category. For ex: a monthly sale of 76,955 units is reported for the product category butter as the category sales; out of which Amul butter has a sale of 74,764 units, thus giving the Amul sales.(Sales figures of product categories are reported in units, except for paneer(in grams) and ice creams(in Rs.))

Product AMUL Butter AMULSPRAY

Category Amul Sales Sales 76,955 74,764 9,115 6,406

48

AMULYA Cheese AMUL UHT AMUL Fresh Cream AMUL Paneer MethaiMate AMUL Ghee AMUL Chocolates AMUL Beverages AMUL Icecreams

55,968 24,842 15,951 3,783 1,085,84 4 10,692 35,885 252,212 10,489 1,845,00 0

35,974 19,840 15,951 3,672 227,986 2,392 3,258 4,750 7,570 407,000

6. Market Share: This table states the percentage market share of each Amul product. Market Share = (Category Sales/Amul Sales) * 100 % Mkt Share 97.15 70.28 64.28 79.86 100.00 97.07 21.00 22.37 9.08 1.88 72.17 22.06

Product AMUL Butter AMULSPRAY AMULYA Cheese AMUL UHT AMUL Fresh Cream AMUL Paneer MethaiMate AMUL Ghee AMUL Chocolates AMUL Beverages AMUL Icecreams

49

7. Market Penetration: This table depicts the market penetration for each product category and the corresponding Amul product(s) in that category. Market penetration = No. of outlets stocking the product/Total Number of outlets (The figure depicted in the graph represents the market penetration of each Amul product.

50

Product Butter Amulspray Amulya Cheese UHTMilk Fresh Cream Paneer MethaiMate Ghee Chocolate Beverages Ice-cream

Product Category 0.78 0.44 0.88 0.51 0.32 0.25 0.11 0.47 0.63 0.50 0.13 0.13

AMUL 0.78 0.44 0.87 0.50 0.32 0.25 0.10 0.27 0.32 0.27 0.22 0.04

51

5.1 SPSS Analysis 5.1.1. Output of Category Sales Data using Regression Analysis

Coefficient Correlationsa Model 1 Correlations Service frequency Shop size Total time Avg. daily footfall Total capacity Covariances Service frequency Shop size Total time Avg. daily footfall Total capacity a. Dependent Variable: Category sales Service frequency 1.000 .075 .001 -.019 -.092 2042211.882 539.586 1539.856 -523.187 -555.085 Shop size .075 1.000 .260 .006 -.546 539.586 25.142 1013.811 .600 -11.533 Total time .001 .260 1.000 -.066 -.099 1539.856 1013.811 606120.683 -974.581 -324.913 Avg. daily footfall -.019 .006 -.066 1.000 -.462 -523.187 Total capacity -.092 -.546 -.099 -.462 1.000 555.085

.600 -11.533 -974.581 324.913

359.084 -36.914 -36.914 17.768

52

Interpretation Multiple regression analysis is used to predict the category sales of a particular shop given a set of independent variables. The dependent variable, in this case, is category sales (in units) of a shop. The independent variables are: shop size (in sq. feet), average daily footfall (in units), total refrigeration capacity (in litres), total time the shop remains open (in hours) and weekly service frequency of the distributor (in units). The R-square value is given as 0.486. As given in the above table, all the independent variables except service frequency are significant at the 90% confidence level. Taking the coefficients from the above table, the multiple regression analysis equation stands as follows:

Category Sales = 12262.518 + 33.943* (Shop size) +57.198*( Avg. daily footfall l) +32.444*(Total capacity) -1795.348*(Total time) +1904.458*(Service Frequency).

5.1.2. Reduction of Parameters (For Stock outs) by Factor Analysis Output

53

Rotated Component Matrixa Component 1 A B C D E F G -.003 .136 .599 .899 .868 .776 .022 2 .868 .871 .390 -.078 -.158 .277 .876

Category 2

1.

Analysis of unorganized retail outlets 5.2 Coverage of the company Table 1.1.1

BRAND PARLE

Direct 367

Indirect 43

No Coverage 0

Chart 5.2

54

Direct coverage: it means directly reached by authorized channels of the company. Indirect coverage: it means distribution is done by other intermediaries.

Interpretation: Parle covers all the retail outlets under study and 90% were under direct coverage i.e salesman of Parle distributor (of that area) visits weekly on these stores. Rest 10% outlets source the Parle products either from wholesaler or any other retail outlet. 1.1 Categorization of retail outlets based on PARLE sales Table 1.2.1 CATEGORY CATEGORY ' A ' (No Coverage) CATEGORY ' B ' (1-5000) NO. OF OUTLETS 0 230 % SHARE 0.0 56.1

55

CATEGORY ' C ' (5001-10000) CATEGORY ' D ' (10001-15000) CATEGORY ' E ' (15001-20000) CATEGORY ' F ' (>20000)

99 33 18 30

24.1 8.0 4.4 7.3

Chart 1.2.1

Interpretation:The above pie chart shows the classification of retail outlets present in areas under study. The categorization is made on the basis of monthly sales of Parle products by the retailers and the whole sellers. It has been divided into 6 categories mentioned above.

56

There are no A category outlets as Parle covers all the Retail outlets under study whereas category B has highest share of 56% with 230 outlets and most of total retail outlets fall under Category B & Category C (80%) visited by the Researchers here. It can be seen that only 7% outlets fall under category E i.e greater than Rs20000

1.2 Visibility of PARLE products For Biscuits: Table 1.3.1 BRAND (Biscuits) Parle-G Krackjack Monaco Monaco Funion Hide&Seek Milano Orange Kream Mango Kream Elachi Kream Pineapple Chocolate Kream Golden Arch Nimkin Marie No. of shops 410 385 394 75 255 85 330 388 393 381 377 35 101 198 Total 410 410 410 410 410 410 410 410 410 410 410 410 410 410 % VISIBLE 100.0 93.9 96.1 18.3 62.2 20.7 80.5 94.6 95.9 92.9 92.0 8.5 24.6 48.3

57

Milk Shakti Bourbon 20-20 Butter 20-20 Cashew

185 210 340 332

410 410 410 410

45.1 51.2 82.9 81.0

Chart 1.3.1

58

Interpretation:-

59

Brands such as Parle G, Krack jack, Monaco, Orange Kream, Mango Kream, Pineapple Kream, Chocolate Kream, Elaichi Kream are visible in almost all stores (90-100 %) but brands such as Monaco Funion, Golden Arch & Numkin were not available in many stores. 1.3 Coverage with respect to competitors Table 5.2.3 BRAND PARLE ITC BRITANIA PRIYAGOLD Direct 367 308 305 281 Indirect 43 21 27 26 No Coverage 0 81 78 103

Chart 1.5.1

Chart 1.5.2

Chart 1.5.3

60

Chart 1.5.4

Chart 1.5.5

61

Interpretation: Among the competitors only Parle covers most of the outlets (90%) directly, rest covers approx. 70-75 % of outlets directly. Also ITC, Britannia & Priyagold has no presence in approx. 20-25 % outlets but Parle full coverage. This is the strength of Parle Company.

62

1.4 Brand availability with respect to competitors

Table 1.6.1 BRAND Nil PARLE ITC BRITANIA PRIYAGOLD 0 81 78 103 1 to 5 20 227 193 112 No. of Brands 6 to 10 88 85 99 144 11 to 15 302 17 40 51

Chart 1.6.1

63

Chart 1.6.2

Chart 1.6.3

64

Chart 1.6.4

Chart 1.6.5

65

Chart 1.7.1

Interpretation:It can be seen that in most of the outlets (56%) Parle sales come under category B as compared to other categories. Compared to competitors the company tops Category B. Company share in Category is also far higher than that of competitors. So, every company has sales of 1-5000Rs in 50 % outlets Analysis on organized retail outlets 2.1 Parle Sales in Organized Retail Table 2.1.1

Category

Sales

No. of outlets (Parle)

No coverage 'A' 'B' 'C' 'D'

0 1-15000 15001-30000 30001-44999 >=45000

0 1 10 11 8

66

Chart 2.1.1

Interpretation:It can be seen that 35% of outlets have Parle sales between 30,000Rs and 45,000 Rs which is a very good indication. And 27 % outlets have Parle sales above 45,000 Rs.

2.2 Parle Sales with respect to competitors in organized retail outlets Table 2.2.1 No. of outlets (Parle) 0 1 10 11 8 No. of outlets (ITC) 4 5 20 5 4 No. of outlets (Brit) 0 2 5 14 9 No. of outlets (Priyagold) 5 5 18 2 0

Category

Sales

No coverage ' A' 'B' 'C' 'D'

0 1-15000 15001-30000 30001-45000 >45000

Chart 2.2.1

67

Interpretation: In organized retail outlets Britannia beats Parle in Category C (30001-45000). And this is because Parle products are cheaper as compared to Britannia and so sales are high.

2.

Analysis on Consumer Behavior

68

2.1Type of biscuits preferred Table 2.1.1 Biscuit Preferred Glucose Salty Sweet and Salty Kreams Cookies No. of consumers(out of 100) 38 08 15 25 14

Chart 2.1.1

Interpretation:-

69

The above graph shows the types of biscuits preferred by the consumers. Glucose is most preferred (38) by the consumers followed by kreams (25). Whereas Salty (8) holds the last position. 2.2Preference between organized and unorganized retail stores to buy biscuits and confectionary Table 2.2.1 Type of Store Unorganized retail (Kirana) stores Org. retail stores Sales 76 24

Chart 3.3.1

Interpretation:-

70

The above pie chart shows the place from where people prefer to buy biscuits and confectionary. The study shows that 76% of people prefer to buy them from general kirana stores whereas 24% people prefer to buy from organized retail stores like Spencers, Big bazaar or Reliance fresh.

4.1 Preference for the biscuit company

Table 4.1 Company Parle Britannia Priyagold Itc No. of consumers 48 27 7 18

Chart 3.4.1

Interpretation:

71

The above pie chart shows the preference of consumers for biscuit company. The result shows that PARLE got the highest position followed by BRITANNIA and then ITC. PRIYAGOLD got the least preference by the consumers.

4.2 Preference to factors (Taste, Price & Brand image)

Table 3.5.1 Chart 3.5.1 Rank Rank1 Rank2 Rank3 Taste 96 4 0 Price 2 39 59 Brand Image 2 57 41

4.3 Preference according to taste

Table 3.6.1

72

Rank rank1 rank2 rank3 rank4

Parle 41 33 21 5

Britannia 33 39 16 12

Itc 17 19 28 36

Priyagold 9 9 35 47

Chart 3.6.1

INTERPRETATION:- The scores of rank1 are multiplied by 1 , the scores of rank2 by 2 and so on. And the sum of all the ranks for the given companies is summed up to get the total scores. As Parle has got the minimum total, therefore it can be infer that consumers prefer Parle most when it comes to taste followed by Britannia and then ITC. Priyagold is least preferred by the consumers.

4.4 Preference according to price

Table 3.7.1

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Rank Rank1 Rank2 Rank3 Rank4

Parle 42 29 17 12

Britannia 16 20 33 31

ITC 11 15 27 47

Priyagold 31 36 23 10

Chart 3.7.1

INTERPRETATION: - Here Parle is the prime choice of consumers when price is given preference followed by Priyagold and then Britannia. ITC is least preferred by consumers in the case of price.

4.5 Preference according to brand image

Table 3.8.1 Rank Parle Britannia Itc Priyagold

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rank1 rank2 rank3 rank4

28 32 23 17

39 36 19 6

19 21 31 29

14 11 27 48

Chart 3.8.1

INTERPRETATION:- As Britannia has got the minimum total, therefore it is preferred most by the consumers followed by Parle and then ITC. Priyagold is least preferred by the consumers in case of brand image.

Category 3
Market share of various players

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Kissan Magi Heinz Others

56% 19% 16% 9%

Market vsiblity in various market players: Heinz organized retail unorganized retail

95 47

76

Market visiblity of kissan: Kissan organized retail Unorganized retail

100% 97%

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Market visibility for Maggi Maggi organized retail unorganized retail

100% 92%

1. DATA GIVES NUMBER OF CONSUMERS READY TO ACCEPT NEW KETCHUP. CONSUMERS NO. OF CONSUMERS Yes No Total 120 80 200

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2. DATA GIVES OF CONSUMERS READY TO ACCEPT NEW PICKLES. CONSUMERS NO. OF CONSUMERS Yes No Total 145 55 200

3. DATA GIVES NUMBER OF CONSUMERS READY TO ACCEPT NEW JAMS. CONSUMERS NO. OF CONSUMERS Yes No Total 135 65 200

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4. DATA GIVES NUMBER OF CONSUMERS READY TO ACCEPT NEW JAMS, PICKLES & KETCHUPS. Types JAMS PICKLES KETCHUPS Total CONSUMERS READY TO USE 65 80 55 200

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5. DATA GIVES NUMBER OF DISTRIBUTORS READY TO ACCEPT NEW KETCHUP. DISTRIBUTORS NO. OF DISTRIBUTORS Yes No Total 140 60 200

6. DATA GIVES OF DISTRIBUTORS READY TO ACCEPT NEW PICKLES. DISTRIBUTORS NO. OF DISTRIBUTORS Yes No Total 160 40 200

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7. DATA GIVES NUMBER OF DISTRIBUTORS READY TO ACCEPT NEW JAMS. DISTRIBUTORS NO. OF DISTRIBUTORS Yes No Total 175 25 200

8. DATA GIVES NUMBER OF DISTRIBUTORS READY TO ACCEPT NEW JAMS, PICKLES & KETCHUPS. Types DISTRIBUTORS READY TO

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USE JAMS PICKLES FEATURES KETCHUPS Total DISCOUNT OFFER RIGHT PRICE QUALITY PACKAGING BRAND EQUITY OTHERS Total 65 90 NO. OF CONSUMERS 45 200 25 65 45 30 15 20 200

9. DATA SHOWS THE FEATURES CONSUMERS CONSIDER BEFORE TRYING A NEW BRAND

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Chapter 6:Finding and analysis

Category 1 : Milk and milk products

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 Butter reported the highest monthly sales (74,764 units) unit-wise. Paneer reported monthly sales of 2,27,986 grams whereas Ice cream has a monthly sales of Rs.4,07,000.Methai mate reported the lowest monthly sales(2,392 units). Market Penetration is highest for Amul (0.87) while Icecreams has the lowest market penetration (0.04). UHT Milk reported for the highest market share (100%) followed closely by Butter (97.2%) and Fresh Cream (97.1%). The lowest market share is reported by chocolates (1.9%). Amul is available in most number of outlets (396) whereas Amul Paneer is available in the least number of outlets (49). Amul Ice creams has the highest percentage of reported stock outs (57.89%) whereas Amul Chocolates has the lowest percentage of reported stock outs (6.45%). Outlet Type-wise: o o o General Shops has the highest monthly sales Amul Parlor has the highest average monthly sales Chemist shops has the lowest average monthly sales

The highest average percentage stock outs for Amul products is reported by Icecreams&Softdrinks Shop(IC/SD)(40%). The lowest average percentage stock outs for Amul products is reported by hotels, canteens & Perfume Shop (0%).

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Amul Parlour & Canteen reported the highest average market share (100%) for Amul products.

Amul Parlour reported the highest average market penetration (0.92) for Amul products.

Observation Amul have 93% market coverage in milk and milk products Although it is facing stiff competition from mother diary and Nestle in its some product lines but it still have strong position in the market because consumer behavior is reluctant to only major players which is leading to achieve its sales targets efficiently. Consumers have strong inclination to branded products in this category because of strong quality parameters. Entrance scope is very limited because market is monopolistic by large players. Brand building while require large cost. Large distribution network is required for successful market reach since urban market is highly unorganized in this category. Cost of maintenance and setting up distribution channel require huge cost

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Category 2 : FINDINGS
After close study of the present market situation prevailing in the areas assigned the researchers, following are the observations. Britannia is emerging as Major Competitor in the organized retail outlets. After conducting the survey on 410 unorganized retailers, 30 organized retailers and 100 customers, the researchers found that all product variety of biscuits is covered by major brands. It was also concluded that Parle is the first preference of both the customers and retailers (Organized and unorganized both) because of its price and brand image.

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Consumers have strong brand preference and brand switching is 85% done among the three already analyzed players.

Scope of entrance is very low cause branding, market penetration require huge cost because distinction and differentiation cannot be made because of very large variety offering by market players.

Brand Parle G dominates the volume-dominated biscuit market. Cost of production is low but scope of establishment is very low.

Category 3: Findings
25% of the whole market is still to be explored.

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Tax holiday has been provided by govt to encourage domestic players Only 2 players kissan and maggi have average of 93%market visibility where other players have only 47% in unorganized market.

Out of 1billion prospective population the ketchup has only 75% of its accessibility. There is almost negligible domination of players in pickle industry. Product category has a huge scope because of changing spending pattern of Indian consumer.

Economy of scale is the biggest factor in this product category. 65% present of urban market sample analyzed are ready to try new brands in this product category.

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Chapter 7: SWOT Analysis

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STRENGTH 1. Low price as compared to competitors. 2. Sizeable market share in the country. 3. Deep and effective coverage. 4. Largest developed distribution system presence. 5. Low Operational Costs. 6. Presence of established distribution networks in both urban and rural areas.

WEAKNESS 1. Breakage of glass while delivering to retailers. 2. No proper replacement system for broken product to retailers. 3. Improper and irregular supply. 4. Poor packaging in family pack of glucose biscuits. 5. Lack of schemes for retailers and distributors.

OPPORTUNITY 1. Rising demand for innovative packaging in packaged foods. 2. Retaining loyal retailers or wholesalers. 3. Improving supply system for established brands. 4. Huge scope of govt co -operation, because of govt schemes. 5. Untapped rural market 6. Rising income levels, i.e. increase in purchasing power of consumers 7. Large domestic market- a population of over one billion. 8. Export potential High consumer goods spending

THREAT 1. Highly advertised brands such as kissan Heinz maggi 2. Ever increasing competition from local companies. 3. Margin war among the major Brand 4. Removal of import restriction resulting in replacing of domestic brands 5. Slowdown in rural demand 6. Tax and regulatory structure

Chapter 8: Business plan

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 ATS AGRO LTD is a dream project of three young aspirants who are professionally qualified MBA,s in international business and marketing. Company will be a small scale production company and will use fruits like apple ,pine apple ,banana ,mango, plum, apricot to produce final products like jams ,squash ,pickle. Company will be set up in accordance with or under the scheme of PRIME MINISTER SELF EMPLOYMENT SCHEME at solan(HP) Guidance for establishment of production premises which include : 1 machines and equipment 2 usage factory space 3 waste management And as well as training for processing of raw material to produce final products will be provide by Dr Y.S Pawar University of horticulture and forestry (Nauni).

Organizational details Type of organization: small scale agro based Minimum capital required: 25lakh excluding land and building Product category studied : ketchup, jam, pickle Type of market : established but opportunistic Area covered by major players: 75% Overall Market visibility: 93% No of organized small: players scattered

Project analysis:

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Phase 1 Production: Listing of machineries

Cost

4lakh

Fruit and Vegetable Washer: cost 4lakh Suitable for washing various fruits/vegetables. The machine can wash and clean multiple kinds of fruits and vegetables. The fruits are subjected to strong water agitation for removal of dirt. The washed fruits are then conveyed to the next state by a pick up conveyor

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Fruit Mill Crusher/Hammer Crushing Machine Cost 2lakh Suitable for crushing hard seedless fruits before pulping or juice extraction. Available in following models: Available in Capacity : C 114 300 kg/hr C 117 1.5/2 T/hr C 120 3 T/hr C 123 5 T/hr C 126 10 T/hr

(1 HP) (3 HP) (7.5 HP) (10 HP) (20 HP)

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Cooking Kettle (Fixed Type)with scraper attachment cost : 3lakh The Kettle is available with fixed scraper attachment. The Teflon scraper scrapes the inner surface of Kettle and is driven by attached geared motor or gearbox-motor attachment. The scraper attachment ensures that there is no blackening or charring of product while cooking or heating.

Multifunction Vegetable Slicer / Chopper (BPM-309) cost 4lakh Suitable to slice and chop various vegetables like carrots, potatoes and ginger etc. The machine can produce variable sized slices which are then conveyed to the chopping section. The intermittent chopping blade action produce slices/chops/cuts/finger-cuts etc. The cuts sizes can be varied by the variable infeed conveyor

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Vaccum Filler Cost 2lakh Suitable for filling viscous liquids like juice, ketchup and syrup in glass bottles with narrow necks. Available in 2-6 head models in MS or SS finishes. VF 21 VF 24 VF 27 2 Head 4 Head 6 Head 10-12 bottles/min 20-25 bottles/min 35-40 bottles/min

The above models are also available with partial vacuum to fill PET bottles. Colloidal machine picture is not available : cost 2.5 lakh Purpose to bring same thickness in pulp extracted Lug cap sealer for capping jams and pickles Cost 1.25 PP cap sealer for ketchups cost : 1lakh Assembly line 1lakh Factory space requirements Minimum area required for production :2400sqmeter Area available: 5000 sq meter x 2 floors Waste management : as per govt guidelines Minimum Storage space required: 800sq m

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Expansion scope : 2600 Storage space 4000 sq meter Estimated production 1.5 ton per product per day

Factory specimen :

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Phase 2
Market analysis and scope: presented in chapter 5 and 6

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Method of entrance: Franchising Self establishment

Consumer behavior measurement: using questionnaire and graphs (done in chapter chapter 5)

Branding
Corporate name: ATS AGRO LTD

Brand name: Jam Jammie Ketchup- Saucamania Pickle- AchaRam Distribution channel of ATS AGRO

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Phase 3
Financial analysis Project design cost: Technical design and turnkey development will be done by food processing department Nauni university solan Charges for developing TECHNICALLY FULFILLED BLUE PRINT :10,000 Over all cost project: 25-35 Lakh excluding land and building Funding of project: project will be able to raise fund since the project has been designed and approved by Nauni University which is eligible to raise funds under : Prime Minister Rojgar Yojana or Agro Product scheme under NABARD 75% of the cost of project will be financed 25% should be brought by promoters cost of machinery 20 lakh Project costing in Subsidies 40% subsidy at the time of loan pay back Specimen of project costing and profitablity analysis Production capacity : 300000 kg half yearly Selling cost : ketchup Rs 33 ,pickle Rs31, jam Rs34 Packaging size : 500gm and 300gm 1 PROJECT COST/CAPITAL INVESTMENT S.No Description 1 Preliminary & Preoperative Expenses 2 Fixed Capital 3 Working Capital for 2 month(s) Total Project Cost Amount Rs. 10000 81500 1505000 1596500

2. MEANS OF FINANCE S.No Description 1 Promoter Contribution 2 Subsidy 3 Term Loan Total

%age Amount Rs. 15% 239475 20% 319300 65% 1037725 1596500

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3. Financial aspects:
A. FIXEDCAPITAL 1 Land and building rented: 2 Machinery and Equipment S.No Description 1 Fruit Washing Tank 2 Juice Extractor 3 Steam jacketed kettle 4 Stirrer 5 Installation and misc. Items Total B. Working capital 1 Salaries and wages per month SNO. 1 2 3 4 Description Production manager nutrition Skilled labor Semi skilled labor Nos. 1 1 1 3 Sal/mnth 5000 15000 5000 2500 Amount 5000 15000 5000 7500 32,500 Rs8000per month Qty. 1 1 1 1 Rate 5000 25000 34000 12500 Amount Rs. 5000 25000 34000 12500 5000 81500

2. Raw material per month Description 1 2 3 4 5 6 Fruits and vegetables Vinegar ,salt , spices Color ,preservatives sugar Bottles of 500ml Bottles of 300ml Unit Kgs Kgs Kgs Kgs Qty 100000 1200 25 600 15000 10000 Rate 5 60 200 15 4 3 Amount 500000 72000 5000 9000 45,000 30,000

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Cartons and whraps Total

100

20

2000 663000

3. Utilities per month SNO. Description 1 Power Fuel for boiler water Unit 1.8 150 x10 2 Amount rs 9000 15000 2000 260000

4. Other expenses per month Sno. Description 1 2 3 4 5 6 Postage & Stationery Expenses Transportation Expenses Advertising expense Consumable Stores Repairs & Maintenance Miscellaneous Expenses Total Amount 1000 100,000 7000 1500 3000 1000 113500

4 Total working capital per month

S.No. 1 2 3 4 5 Rent

Description

Amount Rs. 8000 28500 688000 21000 7000

Salaries and Wages Raw Material Utilities Other Expenses Total

752500

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5. COST OF PRODUCTION (PER ANNUM) S.No 1 2 3 Description Total Working Capital Depreciation @15% Interest@12% Total Amount Rs. 9030000 12225 124527 9166752

6TURNOVER (PER YEAR) S.No Description 1 Total Unit Total

Unit kg/annum

Qty. 300000

Rate Rs. 33

Amount 99000 00 990000 0

7 FIXED COST (PER YEAR) S.No Description 1 Depreciation 2 Interest 3 Rent 4 Salaries & Wages @40% 5 Other Expenses incl. Utilities @40% Total 8. PROFIT ANALYSIS & RATIOS 1 2 3 4 Net Profit Percentage of Profit on Sales Percentage of Return on Investment Break Even Point

Amount Rs. 12225 124527 96000 136800 134400 503952

Rs.

730048 7% 46% 41%

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Chapter 9: Recommendation and Conclusion

Majority of the product classes require very low investment in fixed assets. Existence of contract manufacturing. Marketing assumes a significant place in the brand building process. Extensive distribution networks and logistics are keys to achieving a high level of penetration in both the urban and rural markets. Factors like low entry barriers in terms of low capital investment, fiscal incentives from government and low brand awareness in rural areas have led to the mushrooming of the unorganized sector. Providing good price points is the key to success

Conclusion
Agro based FMCG products provide large opportunity to small business players to enter in the fastest the world. By 2015 FMCG sector of India will have largest spending of the world since it has a growth of 333%per annum so this sector provides growing and aspiring entrepreneurs of the country to place themselves globally growing industry of the country and make mark of own among largest players of

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CHAPTER 10: ANNEXURE Questionnaire

1. Location of the outlet (Segment): a) Airport d) Picnic spot j) Main road b) Bus Stand e) Cinema Hall k) Office/BPO c) Railway Station f) HoReCa i) Market place l) Other place________

g) School/college h) Highway

2.

Type of outlet (Retailers category): a) Grocery store d) Super store g) IC/SD shop j) MFS b) General store e) Chemist shop h) Sweet shop k) Food stall c) Pan shop f) Confectionary/Bakery i) Co op store l) Others____________

3. 4.

Name of the Outlet: __________________________________ Address: ___________________________________________ ____________________________________________

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

Contact Person:______________________________________ Contact Number:_____________ Shop a) open at:_____________ b) Closed at: ______________ Refrigeration : a) Ref______Lit b) Visicooler______Lit c) DF________Lit Average daily foot fall per day? __________________________ Average daily sale: a) Total______ b) Dairy ______ c) Milk_____ D) IC______ CATEGORY Pwdr (A AMUL ADDl. DEMAND

11. Quantities (in kg/units) sold per month (avg.): PRODUCTS Butter Infant Milk

Spray) Dairy whitener (Amulya) Cheese UHT Milk (Taaza etc)

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Fresh Cream Paneer Cond Milk (Methai made) Ghee Chocolate Milk Based Beverage Ice cream

12. If case of not being able to meet the demand, Please rate the following reasons, according to their importance. (1.Strongly Disagree, 2-Disagree,3-Neutral,4-Agree,5-Strongly Agree) REASONS Inadequate Supply from Distributor Inconsistency in supply Irregular demand pattern Shortage of storage space Not enough money to buy stocks Poor Replacement policy debar excess stocking Need more frequent supply by dist If other please specify: _________________________________________________ ___________________________________________________________________________ _______________________________________________________________ 1 2 3 4 5

13. If not keeping Amul products, please rate the following reasons according to their importance. (1-Strongly Disagree, 2-Disagree,3-Neutral, 4-Agree,5-Strongly Agree) REASONS Distributor not visiting the place WD not providing credit facilities Near expiry products being supplied 1 2 3 4 5

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No demand for such products Less margin/scheme Poor replacement of damaged products Not having enough storage place Competitors doing better If other please specify: _________________________________________________ ___________________________________________________________________________ _______________________________________________________________

14. Frequency of service by Amul WD: ___________ per week. 15. Are you satisfied with present way of working?___________________________

Consumer Survey:

NAME:-________________________________________________

AGE:- _________________________________________________

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PHONE NO.:- ___________________________________________

1) How many members are there in your family? Ans2) Who initiates the shopping of groceries in your family? a) Male members Ans. 3) From where do you prefer to buy biscuits? a) Kirana store b) Organized retail market (Like Reliance fresh, spencers, Big Baazar, etc.) Ans. (If answer is b please mention the name of retail chain) 5)Which biscuits do you prefer? a)glucose b)salty c)sweet and salty d)Creams e)cookies Ans. 6)What type of confectionary do you like the most? a)hard boiled candy b)eclairs c)mint d)bubble gum e)bars b) Female member c)children/teenager

8)Which brand do you prefer most? a)PARLE b)BRITANNIA c)PRIYAGOLD d)ITC Sunfeast Ans. 9)Rank the factors in order of preference when buying a biscuit?? Taste Price Brand image e) Other

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10)Rank the following out of 5 in respect to the given factors FACTORS Taste Price Brand image PARLE ITC BRITANNIA PRIYAGOLD

Category 3

QUESTIONNAIRE

NAME: _________________________________________

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AGE: _________________________________________

GENDER:

M()

F()

OCCUPATION: _________________________________

ANNUAL INCOME: ( ) Rs. 50000 & less ( ) Rs. 200000 - 500000 ( ) Rs. 50000 - 200000 ( ) Rs. 500000 & above

Ketchup

Q.1) Which brand do you prefer? ( ) Kissan ( ) Maggi ( ) Heinz ( )Tops

Q.2 How frequently do you purchase? ( ) Every forth night ( ) Once a week ( ) Every month ( ) Occasionally

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Q.3 What is the size of ketchup you usually purchase? ( ) Pichkoo pack ( ) 200g ( ) 600g ( ) 1kg

Q.4 Which flavor of ketchup you like the most? ( ) Hot & Sweet ( ) Teekha Masala ( ) Tomato Chatpata ( ) Tomato Pudhina Q.5 Which offer available influence you the most to purchase this brand? ( ) Discount Offer ( ) Buy one & Get one ( ) Combo pack ( ) Others___________________________________ Q.6 Are you ready to try a new brand? ( ) Yes ( ) No

Jams Q.1) Which brand do you prefer? ( ) Kissan ( ) Morton ( )Tops

Q.2 How frequently do you purchase? ( ) Every forth night ( ) Once a week ( ) Every month ( ) Occasionally

Q.3 What is the size of Jam you usually purchase?

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( ) 200g

( ) 500g

( ) 1kg

Q.4 Which flavor of ketchup you like the most? ( ) Strawberry ( ) Orange ( ) Mix fruits ( ) Mango Q.5 What are the main reasons you buy this brand? ( ) Right Price ( ) Like the quality ( ) Like the packaging ( ) Family prefers this brand ( ) Best taste Q.6 Are you ready to try a new brand? ( ) Yes ( ) No

Pickles Q.1) Which brand do you prefer? ( ) Mothers ( ) Maggi ( )Tops ( ) Haldirams

Q.2 How frequently do you purchase? ( ) Every forth night ( ) Once a week ( ) Every month ( ) Occasionally

Q.3 What is the size of Pickles you usually purchase?

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( ) 200g

( ) 400g

( )1kg

Q.4 Which flavor of ketchup you like the most? ( ) Mango ( ) Ginger ( ) Mix ( ) Vegetables Q.5 What are the main reasons you buy this brand? ( ) Right Price ( ) Like the quality ( ) Like the packaging ( ) Family prefers this brand ( ) Best taste Q.6 Are you ready to try a new brand? ( ) Yes ( ) No

QUESTIONNAIRE

NAME: _________________________________________

AGE: _________________________________________

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GENDER:

M()

F()

OCCUPATION: _________________________________

ANNUAL INCOME: ( ) Rs. 50000 & less ( ) Rs. 200000 - 500000 Q.1) Which all products you sell? ( ) Ketchups ( ) Pickles

( ) Rs. 50000 - 200000 ( ) Rs. 500000 & above

( ) Squash

( )Jams

Q.2 Which is the maximum selling brand in ketchup? ( ) Kissan ( ) Maggi ( ) Heinz ( )Tops

Q.3 which is the maximum selling brand in Pickle? ( ) Mothers ( ) Maggi ( )Tops () Haldirams

Q.4 which is the maximum selling brand in Jams? ( ) Kissan ( ) Maggi ( )Tops

Q.5 Which is the maximum selling brand in Squash?: ( ) Priya ( ) Maggi ( )Tops

Q.6 Do sales of the brand vary during the year? ( ) Yes ( ) No ( ) Cant Say

Q.7 Do consumers ever complain for the existing brand? ( ) Yes ( ) No

Q.8 What is the most important consideration for choosing a brand for consumers? ( ) Price

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( ) Brand Equity ( ) Quality ( ) Convenience Q.9 Would you be interested in stocking a new brand of Jam? ( ) Yes ( ) No

Q.10 Would you be interested in stocking a new brand of Ketchup? ( ) Yes ( ) No

Q.12 Would you be interested in stocking a new brand of Pickle? ( ) Yes ( ) No

Q.13 Would you be interested in stocking a new brand of Jam ( ) Yes ( ) No _________________________________________

Chapter 9: BIBLIOGRAPHY Websites:

www.amulindia.com www.parle agro.com www.itc foods.com www.britania.com www.surya foods.com

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www.icmar-research.net www.nauniuniversity.net www.minstryofagricultreandfoodprocessing.com www.dipp.reasearch.net www.termpaper.com

BOOK:
Dealmakers in agro India- :JK Bajaj Research methodology and Report writing- MC Knodia Indian a food market- R Raganathan Trends of agro industry- S Sreeja Paul Theron

Term papers
Agro feeding India by: ICMAR Statistic outline of food industry: by DIPP Project development for ketchup makers by: Nauni University Comparative sales report: Parle distributor

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