1

DECLARATION

I, your name to declare that the research project report entitled “MARKETING

STRATEGIES OF Bonn Biscuits” being submitted for the partial fulfillment of the
requirement for Bachelor of Business Administration is my own endeavors and it
has not been submitted earlier to any institution/university for any degree.

Place: ( )
Date:

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 ACKNOWLEDGEMENT

My first regards are to almighty God, it was my great trust and belief on him

which enabled me to move on the righteous path.

First of all my whole gratitude towards INDUSTRY GUIDE NAME for

having given me the opportunity to do a summer training project report on

the topic MARKETING STRATEGIES OF Bonn Biscuits.

I also express thanks to my friends who help me in the successes fully

completion of my research report.

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 PREFACE

To start any business the success entirely depends on the marketing research done

about the particular product and the consumer attitude towards the product.

Marketing research plays a vital role in a business to make it success. The topic

for research was

“MARKETING STRATEGIES OF Bonn Biscuits”

I have tried to put my best effort to complete this task on the basis of skill

that I have achieved during my studies in the institute.

I have tried to put my maximum effort to get the accurate statistical data, if

any error or any mistake in collecting the data, please ignore it.

In this project work, a survey was conducted about the prescribing

preferences of consumer, the market share of various brands of biscuits. The

survey was conducted in Ludhiana. A sample of 100 retailers had been taken.

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 TABLE OF CONTENTS

CHAPTER I PAGE NO.

 COVER & TITLE PAGE 1

CHAPTER II

 DECLARATION 2

 ACKNOWLEDGEMENT 3

 PREFACE 4

 SYNOPSIS 8

 EXECUTIVE SUMMARY 9

CHAPTER III

 INTRODUCTION 10

 AREA OF STUDY 11

 RESEARCH OBJECTIVE 12

 DATA COLLECTION METHOD 20

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CHAPTER IV

LITERATURE REVIEW 22

CHAPTER V

COMPANY PROFILE 26
INDUSTRY PROFILE 27
MARKETING STRATEGIES 31
MANAGEMENT HIERARCHY 33
COMPARISON WITH OTHER BUSINESS 37

CHAPTER VI

PROJECT SUMMARY 39

CHAPTER VII
BRAND NAME 40
DISTRIBUTION SYSTEM 43
CONSUMER BUYING BEHAVIOR 48

CHAPTER VIII
 RESEARCH METHODOLOGY 52
 DATA ANALYSIS & INTERPRETATION 55
 MARKET POTENTIAL 60

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CHAPTER IX

 SWOT ANALYSIS 62

 RETAILER’S VIEW AND COMPLAINT 64

 RECOMMENDATION 66

 LIMITATION 67

CHAPTER X

 CONCLUSION 68

 BIBLIOGRAPHY 69

 QUESTIONNAIRE 70

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 SYNOPSIS

TOPIC Marketing Strategies of Bonn Biscuits

OBJECTIVE To find the market share and market

potential of Bonn Biscuits.

RESEARCHER’S NAME Tarun Sharma

AREA OF RESEARCH Ludhiana

SAMPLE UNIT Retailer

SAMPLE SIZE 100 only

TYPE OF RESEARCH Exploratory

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 EXECUTIVE SUMMARY

Boon biscuits is a part of Bonn bread. When this industry to enter in the biscuit

industry then a lot of competitors were there but they didn’t frustrate and entered

with good quality and good distribution channel.

The major customer knows to Bonn Biscuits through its quality and family

pack. Now Bonn Biscuits has good market condition in Ludhiana and very soon

its probability to cover in all over India. Customer more attract from its good

quality. It has a strong image of customer mind.

I , a student of BBA - Vth Sem, Gulzar Group of Institutes,

Ludhiana did my summer training project report in Bonn Biscuits on the topic of

“Effectiveness of Marketing strategies of Bonn Biscuits”.

During the study, I met various executive and staff of organization. Without

whom its project would not have been a successful. I also interviewed a few major

customers to know about their opinion about the company and other competitors.

This helps me in data collection, marketing strategies and assessment. I was able

to know about customer preference and choice of Bonn Biscuits brands and other

biscuit brand and problems.

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 INTRODUCTION

Retail outlets coverage in respect of supplies & competitor’s activity, it is

not only the part of topic but also a very important aspect of business organization.

In present scenario, competitors are major problem of business. Now a days, each

and every organization first of all try to demolish the competitors steps. If any new

organization going to start then firstly it will sure focus on activity of competitors

and according to that next steps arise.

Another part of topic is market share and market potential of Bonn biscuits.

Market share and potentiality helps into organization that where organization

stands in the market or what are the major chances to increase sales or cover the

entire market. This important aspects gives knowledge to organization about

quality, price or choice of the consumer etc. For all the circumstances, retailers

play important role for organization. They give a perfect information to the

company that helps to take next steps.

So perfect supplies, competitor’s activity, market share and potentiality are very

important part of business industry.

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 AREA OF STUDY

LUDHIANA:

 JAMALPUR

 SAMRALA CHOWK

 HARGOBIND NAGAR

 CHANDIGARH ROAD

 TAJPUR ROAD

 DUGRI ROAD

 MODEL TOWN

 PRATAP NAGAR

 INDRAPURI

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 RESEARCH OBJECTIVE

 To find out the retail outlets coverage in respect of supplies & competitive

activity of Bonn biscuits.

 To know the market share of Bonn Biscuits.

 To know the market potential of Bonn Biscuits.

 To know the factors affecting sales.

 To know the buying behavior of consumer toward Bonn Biscuits biscuit.

 To know the effectiveness of advertisement.

 To know the retailers/wholesaler expectation from the Bonn Biscuits.

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 RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One can

also define research as a scientific and systematic search for pertaining information

of a specific topic. It is the pursuit of truth with the help of study, observation,

comparisons and experimentation.

The following are the seven steps of a research:-

1. Specifying research objectives.

2. Preparing a list of the needed information

3. Designing the data collecting project

4. Selecting a sample type

5. Determining sampling size

6. Organizing and carrying out the fieldwork

7. Analyzing the collected data and reporting the finding

These steps are not a contrived sequence of independent steps; they consist of a

number of interrelated activities.

To take an example, one must have a good understanding of the research

objectives. Now we discuss the seven steps in details:

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(1) SPECIFYING RESEARCH OBJECTIVES

In this step of the research process, researchers must first obtain answers to

the questions,

What is the purpose of this study? and

What are the objectives of the research?

If these questions are not properly answered at the outset, the study is likely to be

misdirected and to pursue vague or obscure goals, the probable result will be that

the collected data will not be as valid and/or reliable as desired.

Clearly, this step in the research process must involve both the manager and

the researcher. One source of research error is poorly conceived study. Much of

the responsibility for specifying research objectives necessarily lies with the

manager.

Researcher cannot be expected to answer such questions as “What is the

purpose of study” Without a great deal of assistance. Hence, if this step in the

research process is not to be major source of error, the manager and the researcher

must collaborate in a clear and precise identification of the study objectives.

(2) PREPARING A LIST OF THE NEEDED INFORMATION

After a satisfactory statement of the study’s purpose and objectives has been

established, it is necessary to prepare a list of the information needed to attain the

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objectives. The contents of such a list will be determined by the objectives of the

research and the situation leading to the research request.

(3) DESIGNING THE DATA COLLECTION PROJECT

After the research objectives have been specified (step 1) and the list of

needed information has been prepared (step 2), the researcher should determine

whether such information is already available, either in company records or in

outside sources, certainly, the researcher should not collect data from the field until

the appropriate secondary sources of information have been reviewed. If the

needed information is not available from secondary sources, the researcher will

have to collect data in the field, and so it will be necessary to design a data

collection project.

PROBLEMS IN ACHIEVING THE SCIENTIFIC METHOD:

Researcher encounter many possible sources of error when designing a data

collection project. Some of these include using a poor or inappropriate research

design not using experimental designs where possible); using a large scale study

instead of a small scale study, or vice versa; using poor experimental designs; and

still others.

To minimize the possible sources of error associated with designing a data

collection project, the following five issues must be given attention first:-

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A. SHOULD THE RESEARCH BE EXPLORATORY OR CONCLUSIVE?

To a great extent, this issue is likely to be determining by the research objective

and the situation leading to the request for research. Exploratory research is

likely to be used when investigating a potential opportunity or problem and

conclusive research is likely to be used when the research is likely to be used

when the research findings are expected to result in specific decision being

made or specific actions being taken.

B. WHO SHOULD BE INTERVIEWED AND HOW?

Next, the researcher must identity who has the needed information how it can

be obtained.

C. SHOULD ONLY A FEW CASES BE STUDIED, OR SHOULD A LARGE

SAMPLE BE USED?

If the study is a conclusive one, and if the findings are to be “representative”

of the universe, the researcher may want to use a large scale statistical study.

However, if the project is concern with finding a “best” way rather than a

typical way of doing something such as laying out the main floor of a fast food

restaurant the research may well consists of the analysis of a few selected cases.

D. HOW WILL EXPERIMENTS BE INCORPORATED IN THE

RESEARCH

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 If conclusive research is being undertaken, the research project may include

one or more experiments of some kind. If an experiment is a part of the

research design, the researcher must decide such things as where and when

measurements will take place and how the experimental variable will be

applied.

E. HOW SHOULD THE DATA COLLECTION FORM BE

DESIGNED?

When it is necessary to collect original information, researchers will do so

by either questioning or observing respondents. As it is common in most

research projects to employ a number of field workers, some procedure must be

used to standardize all of the data that is collected. This is accomplished by

giving all interviewers the same data collection from to use when they interview

or observe respondents. In that way, all of the interviewers or field workers

will be collecting comparable data.

(4) SELECTING A SAMPLE TYPE

Almost all marketing research projects are interested in information about a

large population such as all families with children at home or all retail grocery

stores. As it is impractical to collect data from all embers of such large

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populations, a sample is selected. Various type of samples are possible, but they

can be classified into two general categories they are:-

1. Non Profitability

2. Probability

(5) DETERMINING SAMPLE SIZE

The researcher must also decide how large a sample to select. Marketing

research sample very from fewer 10 to several thousand. The research must

consider the problem at hand, the budget and the accuracy needed in the data

before the question of sample size can be answered.

(6) ORGANIZING AND CARRYING OUT

THE FIELD WORK

Fieldwork includes selecting, training, controlling and evaluating the

members of the field force. Their methods used in the field in the field are very

important, for they usually involve a substantial part of the research budget and are

a potential source of error through lack of both validity and reliability. Fieldwork

methods are dictated largely by the method of collecting data, the sampling

requirements, and the kinds of the information that must be obtained.

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(7) ANALYSING THE COLLECTED DATA AND REPORTING

THE FINDINGS

After all the interviews and / or observations have been made,the completed data

collecting forms must be processed in a way that yield the information the project

was designed to obtain. First, the forms needed to be edited to ensure that

instructions were followed, that all questions were asked observations made, and

that the resulting data are consistent and logical. Next, the data is prepared for

tabulation. This means that the data must be assigned to categories and then coded

so the responses can be put in to the computer. The responses are usually tabulated

and analyzed on a computer.

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 DATA COLLECTION METHOD
Data collection is an elaborate process in which the researcher makes a planned

research for all relevant data. Data is the foundation of all market research. Data

or facts may be obtained from several sources. Data can be classified as:-

1. PRIMARY DATA

2. SECONDARY DATA

(1) PRIMARY DATA

Primary data is the data gathered for the first time by the researchers. If the

secondary data is found to be inadequate or unavailable, the researcher goes for

primary data.

COLLECTION OF PRIMARY DATA

Collection of primary data is a task demanding technical expertise. The provider

or the source of primary data is termed as “respondent”. A respondent may give

information actively or passively.

(2) SECONDARY DATA

Secondary data is the data borrowed from secondary sources by the researcher.

Secondary data can be internal or external i.e. internal records of the company or

information available from library and other statistical organization.

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 In a Market Research Project Field Work has a very vital role to play. As a

matter of fact, its the back bone of any Market Research Project. Field Work

basically consists of collection of primary data. In this project, researcher had to

undergo a lot of Field Work. For the purpose researcher has to visit various

cinema halls, public attractive places, colleges and school canteens etc.

The whole area, which was to be surveyed, was divided into different

segments randomly. Simultaneously survey of both retailers and consumers was

carried out. The research worked in the field for a span of half month.

Later on whole data, which was collected from field, was well scrutinized

and tabulated for analysis. Its interpretation has been provided in most easy to

understand manner with the help of suitable diagrams and charts.

I hope that this project will clear all the doubts and perceptions, which come

up in your minds occasionally and I hope that our data analysis and key findings

will throw some more light on Biscuit Industry. At the end I am very much

confident and pleased to state that this project will solve the purpose of Bonn

Biscuits.

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 LITERATURE REVIEW

MARKETING

Marketing is a societal process by which individuals and groups obtain what

they need and want through creating, offering and freely exchanging products and

services of value with others or otherwise it is the process of planning and

executing the conception, pricing, promotion and distribution of ideas, goods,

services to create exchanges that satisfy individual and organizational goals.

MARKETING STRATEGY

Marketing strategy is a set of objectives, policies and rules that leads the

company's marketing efforts. It is the marketing approach to accomplish the bread

objective of the marketing approach to accomplish the bread objective of the

marketing plan. The various process of marketing strategy is given below:

1. Selecting largest markets segmentation

2. Positioning

3. Product

4. Price

5. Place

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6. Promotion

7. Research and development

8. Marketing research

(1) MARKET SEGMENTATION AND SELECTING TARGET

MARKET:

It is an effort to increase a company's precision marketing. The starting

point of any segmentation discussion is mass marketing. In mass marketing,

the seller engaged in the mass production, mass distribution and mass

promotion of one product for all buyers. Market segment consists of a large

identifiable group within a market with similar wants, purchasing power

geographical location, buying attitudes or buying habit. It is an approach

midway between mass marketing and individual marketing. Through this the

choice of distribution channels, and communication channels become much

easier. The researchers try to form segments by looking at consumer

characteristics; geographic, demographic, and psychographic. After

segmenting the market then target market selected.

(2) POSITIONING: The positioning is a creative exercise done with an existing

product. The well known products generally hold a distinctive position in

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 consumer's minds. The positioning requires that every tangible aspect of

product, price, place and promotion must support the chosen positioning

strategy. Company should develop a unique selling proposition (USP) for each

brand and stick to it, bonn consistently promotes its DAP fertilizer by Higher

yield at lower cost. As companies increase the number of claims for their

brand, they risk disbelief and a loss of clear positioning. In general a company

must avoid four major positioning errors. Those are under positioning over

positioning, confused positioning and doubtful positioning.

(3) PRODUCT: A product is any offering that can satisfy a need or want. The

major types of basic offerings are goods, services, experiences, events, places,

properties, organizations, information and ideas. The company gives more

importance in quality, packaging, services etc. to satisfy the customers. The

products has it's life cycle. The product strategies are modified in different stages

of product life cycle.

(4) PRICE: It is the most important aspect in company's point of view. Price of

the product will be decided by the company according to the competitor's price.

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(5) PLACE: This plays a major role in the entire marketing system. the company

emphasis on it's distribution network. Proper distribution network gives proper

availability of the product.

(6) PROMOTION: Promotion is the one of the major aspects in marketing

strategies. By adopting various promotional activities the company create strong

brand image. It also helps in increasing the brand awareness. It includes

advertising, sales promotions and public relations etc.

(7) RESEARCH AND DEVELOPMENT: After testing, the new product

manager must develop a preliminary marketing strategy plan for introducing the

new product in to the market. The plan consists of three parts. The first part

describes the target market's size, structure and behavior. The second part out

lines the planned price, distribution strategy and marketing budget for the first

year. The third part of the development describes the long run sales and profit

goals and marketing mix strategy over time.

(8) MARKETING RESEARCH: Marketing research is the collection and

interpretation of facts that help marketing management to get products more

effectively into the hands of consumers, Marketing research encompasses all

information pertinent to this task, all the appropriate technique.

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 COMPANY PROFILE

The Pioneer & The Vision

Mr. Manjeet Singh, a modest man, who made a humble beginning with a grand

Vision, has come a long way in 25 years, but if something has not changed along

the way, it is his modesty and his Vision: “To provide products rich in Quality and

Goodness across an ever-growing network of Consumers, with a motto of

‘Everyday Everywhere’ making our products an essential part of the life of every

individual”

From Humble Past to Glorious Present

The Beginnings

“The journey of a thousand miles is made up of a million steps, but the most

important one is always the First step”

In 1985, we took our first baby step with a single traditional oven in Ludhiana,

consuming 5 bags of flour per day and made our entry into the Food market by

providing Bread of superior quality to the local distributors. Even though our

products were circulated only at Punjab’s grass root level, mainly Ludhiana’s rural

‘mandis’ (markets), never ever did we compromise on the standards of Service or

our dedication towards efficient distribution because we have always believed that

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the quality of SERVICE defines a company’s image and its perception in the

market.

Soon, we made a shift from the Traditional Oven to a Rotary Rack, and within 2

more years, the number of Rotary Racks had increased to 3, consuming 80-90 bags

of flour per day.

The Overdrive Mode

“Some stories end with Success. Some BEGIN with it”In 1994, we came up with

the first Automated Food Processing Unit of North India – Bonn Nutrients. In

1995, a new brand Prime Time was launched (High Volume bread – a first in

India)! Prime Time was a huge success, so much so, that to meet the market

demand, the company had to double its production capacity within 6 months!

In 2000, to meet an ever increasing Demand, a second Automated Food Processing

Unit was brought up which produced 50,000 loaves of bread everyday. By now,

we had become a leading Regional player of North India, and with our impressive

Distribution network, the service had grown to a circle of 400 km.

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Within 5 more years, 3 more production lines were introduced, taking the

production up to 2.5 lakh loaves of bread per day. Along side bread, Bonn was

now also producing 1.5 lakh units of other Bakery items on a daily basis.

From Bread to Biscuits and Beyond!

“A company that wants to touch the sky, would surely Diversify…”

With a vision to diversify, in 2002, Bonn started a Cookies plant, and became the

first in India to start production of cookies on an industrial scale. Bonn also

introduced other products like Bar Cakes and a Fresh Bakery items range which

were lapped up by the markets. In 2004, Bonn Biscuits were launched, for which a

fully Automated Online Biscuit Plant was started.

Quality Policy
We are committed to manufacture & supply quality products, which exceed customer
satisfaction and market requirements.
The HACCP system (hazard analysis of critical control points) adopted by us, enables to
demonstrate our commitment with respect to safe food, which ensures that our products are free
from physical, chemical and biological hazards.

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Network of Bonn

National
Besides the Domestic market, Bonn has gradually been expanding across
continents. Our products are now also being distributed to the UK, the US,
Australia, Africa, the Gulf, the UAE, and Netherlands.

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International Network
Our products are now also being distributed to the UK, the US, Australia, Africa,
the Gulf, the UAE, and Netherlands.

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 INDUSTRY PROFILE

It is based on the survey conducted in Ludhiana on Biscuit industry. The

applicability of various branding strategies play crucial role in marketing in

product. The applicability has grown due to the liberalization, competition and

technological changes taking place in corporate world.

In this project the various branding strategies adopted by the company has

been studied and compared on the basis of current market scenario. It gives the

idea about the market share enjoyed by the different companies in the Biscuit

Industry. It provides the adequate coverage of many issues related to biscuit

industry. The objective of this report is to give the market share of Bonn Biscuits

in the Ludhiana. It has been made possible by knowing the consumer's behavior

and by studying the patterns adopted by the retailers. It gives us very precise view

about the existing demand of Bonn biscuits and demand of their products as

compared to other competitors.

Biscuits derive its name from a French word meaning twice backed bread,

Biscuits in general have a good shelf life, which is higher than all other snack

items available in the market.

India is the second largest producer of biscuits in the world after the U.S.A.

but still the per capita consumption is only 2.3 kg/year of developed countries. As

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per the latest survey done by N.C.A.E.R., 49 biscuits are consumed in rural areas.

The penetration of biscuits into households stands at an average of 83.2% with the

rural penetration at 77% and urban penetration at 88%.

Biscuits are reserved for the small-scale sector but there are strong

possibilities of the industry being deserved in line with the government policy of

liberalization. The net effect thus would be greater choice for the consumer as well

as a check on the costs.

The country production of the biscuits during 1997-98 was 18.6 Lac tons of

which 1/2 was manufactured by the organized sector. The industry turn over was

5322.7 Crores of which organized sector contributed 2519.3 crores.

The annual growth rate of the industry is about 12.5%. However, the growth

of cream biscuits, assorted or special variety is the range of 30-40%.

The organized sector consists of large, medium and small scale biscuit

manufacturers who produce packed biscuits.

The major players in this sector are Britannia, Creamica, Parle G, Bonn

Biscuits etc. the unorganized sector comprises of small bakery units, cottage and

household type manufacturing plants. These units distribute their biscuits in the

surrounding vicinity of their manufacturing locations of say 20-50 kms. The

country production of biscuits during 1998-99 is estimated to be about 19.5 lack

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tons. Out of which 1/2 again is expected from unorganized sector. The industry

turnover is estimated to cross 6100 crores of which organize sector is expected to

contribute 2990 crores.

Bonn Food Industries, makers of bonn biscuits, doubled capacity from 25

tonnes a day to 50 tonnes and plans to be a national brand soon. In an aggressive

mode, the North dominated biscuit player has increased its ad budget to Rs. 5 crore

this year from Rs. 3 crore last year. Bonn has also recently invested about Rs. 5

crore in the modernization and expansion of its production and packing its

production capacity of 40 tonnes per day to 100 tonnes per day by next year.

The low priced brand claims to have a 15 per cent market share in the North

and is aggressively eyeing a bigger bite of the Rs. 2,500 crore biscuit industry.

The brand plans to gain a 40 per cent market share in the North by the year of

2014.

The company's strategy has been to attract new consumer segments and widen its

consumer base with its well packaged low priced offerings. Bonn's success has

also come from its formidable.

I hope that this project will clear all the doubts and perception, which come

up in your minds occasionally and I hope that my data analysis and key findings

will throw some more light on Biscuit industry. At the end I am very much

33
confident and pleased to state this project will solve the purpose of Bonn Biscuits

BISCUITS.

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 MARKETING STRATEGY

Marketing is not Euclidean geometry a fixed system of concept. Rather

marketing is one of the dynamic fields within the management arena. The market

face continually a new challenge everyday and companies must respond to it

positively. Therefore it is not surprising that new market idea keep surfacing to

meet new market place challenges.

The market process is applicable to more than goods and services. Anything

related to market including ideas, events, policies, prices and personalities comes

under market strategy. However it is important to emphasize opportunity in the

market through market strategy.

Following strategies adopted by the organization.

 A strong quality of the product and customer satisfaction:

Customers always believe in good quality product. In my survey, I found that in

percentage term more people is quality conscious and not price conscious.

Customer satisfaction is very important part of the organization that at any cost

they have to fulfill.

 A growing relationship with customer and customer retention:

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Nowadays a good relation with customer is very important for organization. Sale

is totally depending on the relation with the customers. Customer's retention is

also a major aspect for growing business. It means keep the old customer and try

to make new customer.

 Focus on competitors activity:

Every organization should be careful about it's competitors step, because they can

disturb the growing sales process of the organization.

 A growing emphasis on global thinking and local marketing planning:

Companies are increasing by pursuing market beyond their borders. When they

enter other countries they must follow the tradition of that country and also they

make plan for local market that which type of product has more demand and how

can it run in the market.

 Promotional Strategy

Under the market strategy promotional idea is very important. Organization

provides some schemes or rebates to retailers or consumers. They make

advertisement according to convenient of the people and the feature of the product.

So on the basis of marketing strategy of organization runs in the market. It is

several types of which makes helpful to increase sales and turnover of the

organization.

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MANAGEMENT HIERARCHY

Bonn Biscuits is headed by Managing Director Mr. Manjeet Singh.

HIS FUNCTION ARE AS FOLLOWS

 Overall responsibility of operations of the company which includes business

services, corporate planning, procurement, manufacturing quality, human

resources development and customer support services.

 Ultimate responsibility for the product quality, overall responsibility for the

implementation and maintenance of the quality management system.

MANAGEMENT REPRESENTATIVES

The MD appoints management representatives and he has defined authority and

responsibility for ensuring that quality system requirement of the company are

implemented and maintained

The responsibilities are:

- Responsible for co-ordination and implementation of the quality system.

- Convening management review committee meetings.

- Coordinating with HRD for the training requirement relating to the quality

management system of the company.

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DEPARTMENTAL HEADS

Various departmental heads are appointed who are responsible for the following:

- Developing and maintaining quality system.

- Document and data control.

- Identify and control of nonconforming products/process/system in the dept.

- Taking timely corrective and preventive action for the non-conformity

observed.

- Identifying training needs of the personnel in the department.

MARKETING AND SALES ORGANIZATION (MSO)

Marketing and sales organization of Bonn Biscuits is directly responsible for all

product management and sales operation for both domestic and overseas market.

PROFESSIONAL SERVICES ORGANIZATION (PSO):

PSO of Bonn Biscuits provides solutions in the area of development, integration,

facilities management and training. Bonn Biscuits strengthened its PSO to meet the

growing demand for enterprise solution in key vertical segments comprising

industries in telecommunication, manufacturing, finance and banking, government,

utilities and transportation.

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MANAGEMENT INFORMATION SYSTEMS (MIS):

The MIS department handles information system needs of Bonn Biscuits. All

major functions like sales order processing and invoicing PPC, Finance, HRD,

inventory, Call maintenance etc are fully computerized and integrated with each

other having electronic mail facilities, all customer orders are transferred

electronically to the plant for execution.

FINANCE & ACCOUNTS

Finance and Accounts department is responsible for keeping accounts of the

company, arranging and managing the funds, credit control etc.

CFO

DGM

FINANCE MANAGER

EXECUTIVES

Finance department is under the control of CFO. It comprises of Accounts

Executives. Account section generates information/data relating to operational

activities of the firm. The end product of accounting is financial statement such as

39
the Balance Sheet, Income statement and statement of changes in financial

position.

These statements and reports assist the Finance Manager in assessing the past

performance and future planning for the firm.

Finance manager deals with cash and Bank. The company has well-developed

system of accounts. The responsibility of recording the day to day transaction is

vested with the deputy general manager. Under the finance manager, there are the

executives.

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 COMPARISON WITH OTHER BUSINESS

Generally all organizations have competitors in the market. A particular

organization always comprises with other same business and according to market

share we clarify the brand of product is giving more challenge to my product.

When I was in the field for Bonn Food Industries. I found many products, which

can be compared with Bonn Biscuits biscuit. As a conclusion I found that

particularly in my provided area Bonn Biscuits is really doing well and its

performance is on surprising level. Their Bonn Biscuits got market Leader

position and main competitor is BRITANNIA with the second position. Except

these two branches so many brand is as a competitor of Bonn Biscuits and they are

covering some parts of markets. These brands are PARLE-G, ANMOL &

CREAMICA.

Bonn Biscuits is basically providing good quality biscuits but Britannia is

not only providing good quality but also providing small chocolate with small pack

of biscuits. Parle-G has good taste for especially for children. Yammi biscuit is

only selling of Anmol because it is very tastey.

41
 In my provided area the share of the market is as follows.

Bonn 42%

BRITANNIA 35%

PARLE-G 20%

ANMOL 3%

These are the main competitors of Bonn Biscuits and BRITANNIA comes in

second position but Bonn Biscuits is largest demanded biscuit. Customers like its

various brands.

When we compared with other businesses then we follow the quality, price,

distribution system, promotional strategy etc. of the competitors. In this area,

Bonn Biscuits is doing well. The business of BRITANIA is also growing with

some good brand of products. Anmol, Parle-G, & Creamica are also giving good

competition to Bonn Biscuits and BRITANNIA biscuit organization. So these are

the comprises explanation with other business of biscuit.

42
 PROJECT SUMMARY

After going thick on the things, now time is to make a complete picture. While

making a product a SKU (stock keeping unit) of the shop retailers think about the

GMROI (gross margin return on investment) and they promote the brand which

provide them highest. They can expect return in the form of profit margin,

company schemes, window display and reference of the shop. Among these

company schemes make the difference and are the highest sources of motivation

after profit margin. Retailing demands a constant push from the company.

Marketer needs to use advertising and brand building strategies to address

the discerning buyers and retail push to in different buyers. The manufacturer

should understand consumer behavior because retailers can’t help quality and

price. It is only up to manufacturers to deliver what consumer wants. I need to

stress on it because 58% retailers said that it is demand why they sell Bonn

Biscuits. 61% agree that at retail shop it is brand popularity, which determine the

purchase of biscuit. There is a greater need to understand the retailer behavior.

Considering them as a team, working for the company may help them to be

attached to the company. There should be a feeling of belonging to the company

in inner of the retailers. This can be done by setting values club for retailers so that

they may exchange views with the company and help in understanding consumer

behavior.

43
 BRAND NAME

 Cream Delight

 Sweet Cream

 Bourbonn

 CrackNuts

 Kookies

 Butter Bonn butter

 Butter Bonn cashew butter

 Coconut

 Nice

 Glucobon

 Twin Bite

 Saltino

 Marie Day

 Premium Cakes

 Sweet Desire

 Cup Cakes

44
 PRODUCTS OF BONN BISCUITS

Cookies Premium Cream

Regular Creams Crackers

Glucose

DISTRIBUTION CHANNEL

45
 MANUFACTURER

STOCKIST

DISTRIBUTOR

RETAILER

CUSTOMER

Distribution in marketing context means the transfer of goods from producer

to consumer, as we all know. In a distribution system, we are to first find out what

kind of distribution channel is to be selected so as the firm can get a convenient

supply and economic maintenance of profit.

In Biscuit Industry, where flow of goods, matters a lot, it is must to consider the

following points very carefully.

 Selection of channels for distribution

 Warehousing and Transport

 Operational Research

 Logistic Mix

1. SELECTION OF CHANNEL OF DISTRIBUTION

46
For selecting a channel for distribution following points are to be considered.

NATURE OF PRODUCT: Bakery items are consumer goods and are constantly

in demand. Once a consumer does not find it in the retail shop, head may instantly

choose the another, at least for trial and here beings the decrease of market share.

Bonn Biscuits should not be always available in retail shop but be visible to

customer also.

FINANCIAL POSITION OF MANUFACTURER:- The fewer the number of

organization in the chain, smaller the burden on the manufacturer. Expenditure on

distribution through alternative channels must be noted.

The distribution margin is affected with the selection of distribution channel.

VARIETY OF PRODUCT TO BE SOLD:- More the variety of product, more

the responsibility of marketing department of the company.

2. WAREHOUSING AND TRAINING

Warehousing and transport are essential part of distribution system. Warehousing

should be done in a manner, minimum maintenance of cost should occur. That

should be a source of quick supply to customer because from this place basic

supply starts.

Transport is costly, so decision should be taken as to whether warehouses are to be

centrally situated or decentralized. To maintain economical support, control of

47
cost of vehicle is essential and shipment must be planned so those vehicles are

effectively employed.

3. OPERATIONAL RESEARCH

Operational research is valuable in improving aspects of distribution process,

How?

 By mathematical representation of whole distribution system.

 Noting and comparing transport cost.

 Measuring warehouse operation cost.

 Measuring Stock Level

4. LOGISTIC MIX

There has been little close examination of possible saving in area of physical

distribution, now known as logistic.

"Customer want products available in right sizes, at the right time, in right packet

and right condition. This is possible if five key decisions are coordinated.

 Facility

 Inventory

48
 Communication

 Utilization

 Transport

It is important to remember the physical distribution management refers to the flow

of goods from end of production time to customer. Logistic incorporates the total

flow, information into, through and out of system.

49
 CONSUMER BUYING BEHAVIOR
Understanding the buying behavior of the target market as the essential task of

marketing management under marketing concept. The consumer market consist of

all the individuals and households who buy or acquire good and services for

personal consumption. The buying behavior tries to find out the answers for the

questions, who buys? How do they buy? Where do they buy? Do they buy?

(A)FACTORS INFLUENCING CONSUMER BUYING

BEHAVIOR

There are four major factors that influence the buying behavior such as cultural

factors, social factors, personal factors, and psychological factors.

(1) CULTURAL FACTORS: Culture is the most fundamental

determinant of a person wants and behavior. Values, perceptions,

preferences, and behavior are the main

variable under culture of an individual. Each culture contains sub-culture

like nationality, religious group, geographical area, and linguistic divisions

etc.

50
(2) SOCIAL FACTORS: A consumer behavior is also

influenced by social factors such as the consumer reference group family

and social roles and status.

(3) PERSONAL FACTORS: A buyer decision is also

influenced by his or personal characteristics, notably the buyers age,

lifestyle, occupation, economic circumstances etc.

(4) PSYCHOLOGICAL FACTORS: a person buying choices

are also influence by four major psychological factors such as motivation,

perception, learning belief and attitudes.

(B) BUYING DECISION PROCESS

It includes buying roles, types of buying and steps in buying process.

(1) BUYING ROLE

The buying role could be classified into four parts. These are initiator,

influencer, decider and buyer.

51
(2) TYPES OF BUYING BEHAVIOR

Consumer decision taking varies with the type of buying decision. There are

four types buying behavior such as Complex buying behavior, Habitual

buying behavior, Variety seeking buying behavior.

(3) STAGES IN BUYING DECISION PROCESS

Here are five stages in buying decision process namely problem recognition

search, evaluation of alternatives purchase decision and past purchase

behavior.

(i) NEED RECOGNITION

The buying process starts with the buyers recognition of a problem of need.

The buyer sense a difference between his actual state and desired state.

(ii) INFORMATION SEARCH

There are different sources from where a consumer can gather information

like personal sources commercial sources, experimental sources.

(iii) EVALUATION OF ALTERNATIVES

After gathering information about different products the customer will be in

a fuss as to choose which product among the mainly alternatives consumer

usually evaluate the alternatives on traditional basis, on the basis of utility

52
 function etc. from the many alternative consumers at last choose the best one

for him.

(iv) PURCHASE DECISION

A consumer who decides to execute purchase intention will be making up to

five purchase decisions.

(v) POST PURCHASE BEHAVIOR

After purchasing the product and services the consumer will experience

some level of satisfaction or dissatisfaction with the product and services

that will influence subsequent behavior. If consumer is satisfied he may

show the probability of buying the product the next time, satisfied customer

will say good thing about the product, proving the statement that "satisfied

customer is the best advertisement. "The dissatisfied customer, may take

some action against it. They may try to reduce the dissonance by

abandoning returning the product.

Understanding consumer needs and buying process is the foundation of any

company. By understanding how buyers go through problem recognition,

information search evaluation of alternatives, the purchase decision and post

purchase behavior marketers can pick up many clues as to how to meet

buyers need.

53
 RESEARCH METHODOLOGY

“All progress is born of inquiry, doubt is often better than over

confidence for it leads to inquiry leads to invention” is a famous

Hudson’s dictum in context of which the significance of research can well be

understood.

1. I visited the dealers & retailers and gathered information required by the

questionnaire.

2. For employing strong based to the research I tried to inquire the position of Bonn

Biscuits, and how satisfied they are with them if they are already selling those.

3. Final ranks were obtained by giving weight to individual ranks possessed by the

respondent to make the research more reliable.

54
RESEARCH PURPOSE

 To analyze marketing strategies of Bonn Biscuits

 To identify the major segment

 To know the requirements

RESEARCH DESIGN

Sample survey: Retailers

Area of survey: Ludhiana

Data type: Primary data and secondary data

Sample selection: Convenience

55
Data collection method

The data for research report was collected by retailers .

RESEARCH INSTRUMENT

Questionnaire and observation are two basic methods of collecting primary data. In

my study we have employed both the methods for the collection of primary data that

suffices all research objectives. Secondary data sources like WEBSITE of company,

Google are also used.

56
 DATA ANALYSIS

Questions pertaining to supply of biscuits

1) Are Bonn biscuits available in your shop ?

[ ] YES [ ] NO

Ans: (a) 92 % retailers are having Bonn biscuits.

(b) 8 % retailers are not having Bonn Biscuits

biscuits.

PERSONAL OPINION: Retailers prefer Bonn biscuits

because it is very tasty & most of the retailers have due to

brand name.

2) If yes, how many brands are available ?

Ans: Out of 100 retailers it is found that 82 retailers

have Bonn biscuits. Out of 88 retailers:

(a) 6 % retailers keeping 0-5 brands of Bonn Biscuits

biscuits.

(b) 33 % retailers keeping 6-10 brands of Bonn Biscuits

biscuits.

(c) 43 % retailers keeping 11-15 brands of Bonn Biscuits

57
 biscuits.

(d) 18 % retailers keeping all above brands of

Bonn biscuits.

PERSONAL OPINION: Retailers prefer 11-15 brands of

biscuits due to retailer’s stock capability.

3) If NO, what is the reason for non availability of

Bonn biscuits ?

[ ] No regular visit [ ]Problem with distributors

[ ] Replacement Problem [ ] Other

Ans: Out of 100 retailers it is found that 18 retailers

don’t have Bonn biscuits. Reason behind it:

(a) 88 % retailers are having no regular visit problem.

(b) 6 % retailers are having problem with distributor.

(c) 3 % retailers are having replacement problem.

(d) 3 % retailers are having other problem.

4) Is Butter Bonn available in the shop ?

[ ] YES [ ] NO

Ans: Out of 100 retailers it is found that 82 retailers are having

58
Bonn biscuits then it is found that 76 retailers are having butter bonn So,

(a) 90 % retailers are having butter bonn biscuit.

(b)10 % retailers are not having butter bonn

biscuit.

PERSONAL OPINION: The tangy taste of butter bonn

enveloped in rich butter between baked biscuits.

(5) If NO, Reason for non availability of butter bonn

biscuits ?

[ ] Problem with supply [ ] People don’t like it

Ans: Out of 40 retailers who are not having butter bonn. Reason for it:

(a) 80 % retailers are having problem with supply.

(b) 20 % retailers says that people don’t like it.

(6) What is the source of procurement ?

[ ] Distributor [ ] Wholesaler

[ ] Direct

Ans: In my survey, I covered 82 Bonn Biscuits shops and

in on that Bonn Biscuits, source of procurements are

(a) Through distributor – 84 %

(b) Through wholesaler – 14 %

(c) Through direct – 2 %

PERSONAL OPINION: In most of the areas, the supply

59
 of distributors are very good that’s why 84 % retailers

take the Bonn biscuits from distributors.

(7) Which other biscuits brands are available ?

Ans: (a) 90 % retailers are having Britania biscuits.

(b) 84 % retailers are having Parle-G biscuits.

(c) 69 % retailers are having Anmol biscuits.

(d) 21 % retailers are having Cremica biscuits

(8) What are the average monthly sales of Bonn Biscuits

biscuits ?

[ ] Below 1000 [ ] 1000-3000

[ ] 3000-5000 [ ] Above 5000

Ans:
(a) 28 % retailers sale Bonn biscuits down

the amount of Rs. 1000.

(b) 47 % retailers sale Bonn biscuits between

the amount of Rs. 1000-3000.

(c) 20 % retailers sale Bonn Biscuits biscuit between

the amount of Rs. 3000-5000.

(d) 5 % retailers sale Bonn Biscuits biscuit more than

the amount of Rs. 5000.

60
 MARKET POTENTIAL

Market potential of the Bonn Biscuits is much positive in competitive era and

will sure cover the maximum market share of biscuit product. Potentiality of any

product depends upon the futuristic performance of the product. It depends that

how much potentiality retailers have to be permanent seller of Bonn.

For great potentiality it is necessary to improve those factors which are going to

effect retailers. In my study, I found some factors, which can help to cover great

potentiality.

These factors are following:

 Scheme delivery should in perfect determining time.

 Some places distributors not able to cover his particular area. That should be

improved.

 Scheme facility should be regular as much as possible.

 Always collect the views of retailers. It gives psychological effect on the

retailers about care ness by manufacturing company.

These factors are very important for the organization. If company is able to

improve these all factors then definitely its market share will more increase.

61
Retailers will take more interest to sell Bonn Biscuits biscuit and customer will

also enjoy for it.

So potentiality is very high of Bonn Biscuits biscuit in positive direction.

62
 SWOT ANALYSIS

STRENGTHS

 Leading FMCG product.

 Strong market potential.

 High demand of the product.

 Big budget and willingness to invest in long term phases.

 Glamorous attractive and effective advertising company.

 Quality maintenance.

 Wide brand variety of the competitor and serve the massage.

 Biscuit is becoming a very essential food habit of our people.

WEAKNESS

 Focusing on bulk order rather than the small ones.

 Schemes and strategies formulated are national and not locally adopted.

 Inability to retain target consumers.

 In effective team of redistribution stockiest.

 Lacking to cater the low-income segment.

63
 Work marketing policy.

OPPORTUNITY

 Further effective utilization of the post distribution network.

 Competing companies are not getting due success.

 Increase in the target consumers every year.

 Increase market share by improving services.

THREATS

 Advent of MNCs with their new product.

 Lucrative schemes offered by the competitors to the retailers.

 Loosing market share due to inefficient work force.

 Decline in market reputation due to ineffective and delaying services.

64
 RETAILER’S VIEW AND COMPLAINT

 Retailer said that due to irregular supply, he does not keep Bonn Biscuits. He

said that people could easily buy Bonn Biscuits but there is no supply of

product.

 He added he intent to promote the product that is good in quality because

people are quality conscious.

 Retailer said that he keeps Bonn Biscuits because he earns a good profit margin.

 Some retailers ask for the gift like Calendar, Notepad, Diary and Wall clock etc.

with quoting the example of some other companies, which are not in bakery.

 Some retailers say that packaging of Bonn Biscuits biscuit is not good.

 Most of retailer says that salesman of Bonn biscuits does not pay proper

attention on replacement and regular services.

 Some retailer says that distributor of Bonn biscuits do not provide goods on

credit.

 Some retailer very much angry from the distribution system of scheme. They

have achieved the target at the end of March but yet did not get the scheme.

 Scheme facility should be regular.

 Always should be taken views of retailers or consumers.

65
 RECOMMENDATION

As a nature of the product is as such, it is always in demand and demand should

be fulfilled at that time itself, following points were understood to be taken into

consideration for making system efficient.

 To promote the product range good consideration should be made to

wholesalers and retailers.

 To maintain the profit margin logistic mix should be adopted by the

company.

 Continuous responses should be taken from the wholesalers about retailer's

satisfaction.

 Everything should not be left on wholesalers, as time to time sales person

should visit retailers to understand consumer market.

 It should be noted whether whole product range is reaching retailers or

not.More retailers and consumer based schemes should be introduced and

special emphasis should be given children based schemes, because children

mainly consume the biscuits.

 As a researcher, I observed that for making the distribution channel smooth

transfer of goods, the contribution of middlemen is required. Making all

process convenient always helps in doing so.

66
 LIMITATIONS

 Absence of proper co-operation of some retailer during the research project.

 The time causes major hindrances. If the retailer was not willing to respond at

that moment, it was too difficult to meet them again.

 Sometimes the right person was not at place, so it was difficult to get my

information about the product.

 The respondents might have shown bias or behaved artificially so exact picture

of sales potential could not be derived.

 Money factor was also one of the factor faced by us.

 Lack of sufficient data on biscuits industry we had to face a

lot of problem about India biscuit’s industrial profile.

67
 CONCLUSION

After going thick on the thing, now time is to make a complete picture.

While making a product a SKU (Stock Keeping Unit) of the shop retailers think

about the GMROI (Gross Margin Return On Investment) and they promote the

brand which provide them highest. They expect return in the form of profit

margin, company schemes, window display and references of the shop. Among

these, company schemes make the differences and are the highest source of

motivation after profit margin. Retailing demands a constant push from the

company.

Marketer needs to use advertising and brand building strategies to address

the discerning buyers and retail push to in different buyers. The manufacturer

should understand consumer behavior because retailers can't help quality and price.

It is only up to dealers said it is demand they sell Bonn Biscuits 42% agree that at

retail shop it is brand popularity, which determine the purchase of biscuit.

There is a greater needs to understand the retailer behavior considering them

as a team working for the company may help them to be attached to the company.

There should be feeling of belonging to the company in inner of the retailers.

Setting values club for retailers so that they may exchange views with the company

and help in understanding consumer behavior.

68
 BIBLIOGRAPHY

BOOKS

 Kotler Philip, Marketing Management, Ludhiana,

Prentice Hall Publication of India, 2004, pages referred

from 102 to 105, 183-197.

INTERNET
 www.Bonn Biscuits.com

 www.google.com

69
 QUESTIONNAIRE

1. Are Bonn biscuits available in your shop?

[ ] YES [ ] NO

2. If YES, Which brands are available?

3. If No, What is the reason for non-availability of

Bonn Biscuits?

[ ] No regular visit [ ] Replacement Problem

[ ] Problem with Distributor

4. Is Butter Bonn available in the shop?

[ ] YES [ ] NO

5. If No, Reason for non-availability of Butter Bonn?

[ ] Problem with supply [ ] People don’t like it

6. What is the Source of procurement?

[ ] Distributor [ ] Whole Saler

70
 [ ] Direct

7. Which other Biscuits brands are available?

(a) _________________ (b) ___________________

(c) _________________ (d) ___________________

8. Which Brands are mostly selling?

[ ] Bonn Biscuits [ ] ParleG

[ ] Britannia [ ] Other

9. What extra quality our competitors have?

10. What are the average monthly sales of Bonn Biscuits?

[ ] Below 1000 [ ] 1000 to 3000

[ ] 3000 to 5000 [ ] Above 5000

11. Would you like to give any suggestion regarding proper supply?

____________________________________________________________

71