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At
Submitted by
Mr. SANDEEP KUMAR
Supervised By
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Banaras Hindu University, Varanasi
(Established by Parliament by Notification No. 225 of 1916)
CERTIFICATE
This is to certify that summer internship report entitled “Sales route mapping
and Survey about feasibility of launching Balaji wafers pvt. Ltd. In Uttar
Pradesh” has been prepared under my supervision by Mr. Sandeep Kumar a
student of MBA (Agri-Business) session 2017-19 of Institute of Management
Studies as part of his course curriculum. This report is his original work and up
to the standard expected from an MBA (Agri-Business) student of Management
institute.
SUPERVISOR
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Acknowledgement
SANDEEP KUMAR
MBA (AB), 3rdSEMSTER
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DECLARATION
I hereby declare that the work incorporated in this project report entitled
“SALES ROUTE MAPPING AND SURVEY ABOUT FEASIBILITY OF
LAUNCHING BALAJI WAFERS IN CHHATTISGARH”
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CONTENTS
Introduction 01
Company profile 09
Objective 14
Research methodology 14
Market survey 15
Consumer survey 21
Annexure 26
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INDUSTRY PROFILE
The Fast Moving Consumer Goods (FMCG) sector is the key contributor of the
Indian economy. This fourth largest sector of Indian economy provides employment to
around 3 million people which accounts for approximately 5% of the total factory
employment in the country. These products are daily consumed by each and every
strata of the society irrespective of social class, income group, age group etc. FMCG
sector is more lucrative because of low penetration levels, well established distribution
network, low operating cost, lower per capita consumption, large consumer base and
simple manufacturing processes for most of products resulting in fairly low capital
investments.
Urban India accounts for 66% of total FMCG consumption, while rural India
accounts for the remaining 34%. However, rural India accounts for more than 40% of
the consumption in major FMCG categories such as personal care, fabric care and hot
beverages. As per the analysis by ASSOCHAM, companies like Hindustan Unilever
Ltd and Dabur India generate half of their sales from rural India while Colgate Palmolive
India and Marico constitute nearly 37% respectively.
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About Balaji Wafers Private Limited
Balaji Wafers began as a micro-retail enterprise in 1974, managed by the Virani brothers at
Astron Cinema, Rajkot. By 1982, spurred by the initiative of Virani brothers, this grew to a
home-based manufacturing venture. A decade later, the brothers set up an international
standard automatic plant in Gujarat, with steps to increase capacity and quality. In 2000,
Balaji Wafers installed its first fully automatic agricultural land and give his sons a mere Rs.
20,000, with the advice to go forth and start a business. The road ahead saw Bhikhubhai
plant. By 2014, Balaji Wafers captured a 70% market share in snacks market. Today, the
company employs more than 1800 personnel in their Rajkot and Valsad manufacturing
facilities. Balaji has the capacity to manufacture 100,000 kg of potato wafers, along with
500,000 kg of savouries per day.
History:-
Entrepreneurship was thrust on the Virani brothers at a young age, when drought forced their
father to sell ancestral, Chandubhai and Kanubhai fail at their first venture of fertilizers and
then take up working at a boarding mess in Rajkot. Two years later, the brothers got
associated with Astron Cinema and performed all necessary jobs with immense sincerity.
This led the owner to offer them a profit sharing deal for running the canteen. The Viranis
initially bought pre-packaged snacks for patrons. Subsequently, the brothers got into sourcing
unpackaged wafers and finally started making them themself at their residence.
This was their first own production and soon, the brothers decided to sell their product
“Balaji Wafers” not just to the Astron visitors, but also to customers outside. This was easier
said than done, due to a harrowing experience of half-eaten packets returned by shopkeepers
and soiled notes being paid. However, the Viranis persisted and ultimately created a name
that was so deeply respected, that it nearly wiped off all other competition. The moped, which
carried the wafers to the market, soon gave way to an auto and then to a tempo taking
financial support through a nationalized bank.
Realizing that the key to constant success and profits was quality, the brothers ensured that if
cooks failed to show up, he personally made the wafers and insisted on the best quality raw
material to make Balaji wafers a premium product. Taking inspiration from the bittersweet
experiences in life, the Viranis went on to create different snacks that were then sold under
the same brand name of ‘BALAJI’.
The key elements behind the phenomenal success of Balaji are the strong fundamental values
of Virani brothers, which chiefly include “Trust, Passion and Steady Hard Work!”
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Market share –
Balaji wafer’s share in chips and namkeen market grew to 13.7% in 2012, from 9.5% in 2008
according to Euro monitor. Balaji dominates in the western market with a share of 71%.
Covering areas of Gujarat, Maharashtra, and Goa. In its home state Gujarat, it has a market
share of 90%. Balaji has newly extended its arms in Indore (MP) with its new plant and In
Uttar Pradesh. Thus penetrating in Northern and Central India markets.
Achievements:-
Daily work updated of route mapping were sent to following mail ids. Provided to us:-
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Company Profile
Founded in 1976
Website www.balajiwafers.com
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Balaji has manufacturing plants in Rajkot, Valsad and in Indore with overall capacity of
6,200 Kg per hour.
Route planning means computing the most cost-effective route involving several nodes or
stopovers by minimizing the distance travelled and/or time taken. The aim is to working out
of the best route for cost effective distribution that will minimise any distances travelled with
minimal stopovers along the way.
Features:-
The application provides highly detailed reports and analysis for route planning taking
into account many variables
Last minute changes with route editing options
Optimized delivery route for backend analysis
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o Minimize total kilometers travelled
o Increase number of deliveries within a given time window
o Quickly accommodate last minute changes
Beat Plan (also referred as ‘Permanent Journey Plan’) is a day level route plan made for field
sales/marketing personnel to make visits to a number of stores at a pre-defined frequency. A
Beat Plan defines whom to visit, when to visit, based on company’s priorities on stores
category/segment. These visits can be made for the purpose of sales order collection, visual
merchandising, etc.
Beat Plans are planned in advance, mostly for a month, to ensure no deviation is there and
each of stores gets required visits from company representatives.
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Excel sheet which was filled during route mapping
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OBJECTIVES
To find out competitors, their margins and marketing strategies in
Faizabad region.
To find consumers taste and type preferences.
To find out way to launch balaji wafers in Uttar Pradesh state.
RESEARCH METHODOLOGY
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MARKET SURVEY
Haldiram’s:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Aloo Bhujia 3.60 5.00 1.40 20
Panchrattan 7.50 10 2.50 25
Khatta meetha 16 20 4 85
Fingers 3.80 5 1.20 25
Takatak 11.50 15 3.50 71
Fatafat bhel 3.70 5 1.30 25
Nut craker 7.90 10 2.10 42
Moong dal 3.60 5 1.40 18
** On an average Haldiram’s offers a margin of 20-25% with additional offers
Pepsico india:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Lays 4.50 5 0.5 15
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Kurkure 4.3 5 0.70 18
Triangles
Kurkure Moong 9 10 1 40
dal
Kurkure Nut 18 20 2 70
craker
Kurkure 31.50 35 3.50 175
Navratan mix
**On an average Pepsico offers a margin of 8-10% to retailers on all its products.
Craxx:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Natkhat masala 4 5 1 23
Moong dal 4 5 1 18
Chees balls 4 5 1 21
Natkhat classic 4 5 1 26
**Craxx offers margin of 20% to retailers on all its products.
Mahesh (Lucknow):-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Gatta gat 4 5 1 30
Roasted chana 4 5 1 20
Salted peanuts 4 5 1 20
Masala pasta 3.80 5 1.20 25
**Local competitors like Mahesh offers margin of 20-25% to retailers.
Khushal:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Jeera papad 3.50 5 1.50 18
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ITC Bingo:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Mad angles 8.20 10 1.80 40
Yumitos 16.4 20 3.60 60
Tedhe Medhe 8.20 10 1.80 40
** Margin offerd by Bingo is 18% for all its products.
Bikano:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Chatar matar 41 50 9 200
Diet chiwda 16.40 20 3.60 90
Aloo bhujia 72.98 89 16.02 400
Khatta meetha 182.04 222 39.96 1000
Navratan 72.98 89 16.02 400
mixture
Moong dal 41 50 9 200
Peanut 41 50 9 200
Matar Masala 41 50 9 200
tasty 182.04 222 39.96 1000
**Bikano offers a margin of 18-20% to the retailers on all its products.
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Local competitors in Faizabad:-
Product Retailer’s MRP (Rs.) Margin Weight in
price (Rs.) Grams
Other Competitors:-
Parle’s
Too yum
Yellow Daimond
Haldiram Bhujiawala
Bikaji namkeen
Haanji Namkeen (Varanasi)
Good morning (Varanasi)
Shree balaji chips
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Marketing strategies by competitors:-
The whole market can be divided into two type the organised market where branded products
are supplied through proper channels and taxes and Unorganised market where local brands
are there who supply there products and does not follow any proper channel.
They offer good margin to retailers and distributers, retailer’s margin range from 15-
30 % per packet. However big brands like lays, kurkure don’t give high margin but
due to good market awareness they hold good position.
Selling extra packet per line was adopted by Haldiram’s in which they were giving
one extra packet with per line.
Good marketing through mass media, hording boards. Also different promotional
strategies are adopted like providing sign. Boards to retailers and wholesalers.
Credit system is followed by majority of Wholesalers, Dealers and distributors in the
region. Which are paid after all the supply has been sold out.
Big brands like haldiram’s, PepsiCo, bikano, Bingo etc. sell their products also
through Big bazar, Best price, Spencer’s, etc. shopping marts.
Their primary focus is on sales thus they offer huge margins to retailers.
Sell their products through Wholesalers and Supers. Thus mostly Push strategy is
adopted.
Decreasing quality and increasing quantity to attract consumer is done.
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Retailer Survey
14%
48%
18%
20%
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DIFFERENT BRANDS AVAILABLE IN
SHOPS
Haldiram's Barkha Pepsico Craxx Vinayak Bingo Maruti Others
100
90
80
70
60
50
40
30
20
10
0
Consumer Survey
Family
Kalori 13% Haldiram's
27%
Kurkure
20%
Barkha7%
Craxx Bikano
18% 15%
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Most Preferred Chips Brand ?
Craxx
14%
Lays, Uncle chips
30%
Takatak
7%
Akash
7%
Bingo
16% Kurkure
26%
Brand
13%
Quality
40%
Prize
28%
Advertisment
19%
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WHAT PRICE RANGE DO YOU MOSTLY BUY?
17%
30%
Rs.5
Family pack
Rs.10
29% Rs.20
24%
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Findings and Conclusion
Haldiram’s and Pepsico are two biggest competitors of Balaji wafers in Uttar Pradesh
region, While there are other emerging brands also which will give competition to
balaji wafers like Craxx, Bikaji etc.
Retailers are mostly encouraged by brand power and margin offered to them. It was
found in research that 14% retailers were encouraged by brand of the product and
18% by the margin offered to them.
In consumer survey it was found that about 27% consumer chose Haldiram’s as best
brand in Namkeen followed by Kurkure (20%), Family(13%). In Chips, it was found
that 30% consumers prefer Uncle Chips.
Among flavour Aloo bhujia, Moong dal, Kurkure were in top and are liked by
majority of consumers.
Sales route mapping is an important tool for managing and optimising sales
operations thus was a major learning.
Among different price range products 30% consumers prefer products of Rs 20, 29%
consumers prefer family pack and 24% consumers prefer products of Rs 10.
Market in Uttar Pradesh region is very big with competition. Also which opens
opportunities for Balaji wafers too which will prove to be beneficial for the company.
There is requirement of advertisement as most of the population is not aware of the
brand. Also with advertisement more and more consumer will be attracted towards
Balaji wafers.
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LIMITATIONS
1. Dealers were not willing to reveal all the information regarding margins and income.
2. Time constraints.
3. Field work was tedious and time taking.
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ANNEXURE
2. Address
…………………………………………………………………………………………………
………………………………………..
NAMKEENS CHIPS
Haldiram’s Uncle chips, Lays
Bickano Kurkure
Kurkure Aakash
Aakash namkeen Bingo
Crax Crax
Others Parle
……………………………………….. Too Yum
Others
……………………………………….. ……………………………………
.
………………………………………
… ……………………………………
.
5. Different range of packets available - Rs. 5/ 10/ 20/ 30/ others ……………………..
6. Most preferred taste variety bought by costumers –
• Namkeens -
Khatta meetha Salted Peanuts
Punjabi tadka Navratna
Aaloo bhujia Soya sticks
Moong dal Others
……………………………………………………………………
• Chips –
Salted chips
Kurkure -
…………………………………………………………………………………………………
………………………
Corn puffs
Masala munch
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Banana chips
Tomato flavour
Others
…………………………………………………………………………………………………
…………………………….
7. Margins offered by different brands –
Haldiram’s - / per packet, / per line
Kurkure - / per packet, / per line
Bikano - / per packet, /per line
Lays, Uncle chips - / per packet, /per line
Crax - /per packet, / per line
Bingo - / per packet, / per line
Aakash - /per packet, / per line
Others - ………………………….. - /per packet, / per line
8. What encourages you to sell particular brand –
Brand advertisement
Margin offered
Costumer demand
Services offered
Other ……………………………
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Advertisement
Quality
Quantity
Availability
Price
Other …………………………………………
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