balaji wefers
TRANSCRIPT
A
PROJECT REPORT
ON
“RELATIONSHIP BETWEEN RETAILERS AND DEALER”
AT
“BALAJI WAFERS PRIVATE LIMITED”
IN PARTIAL FULFILLMENT OF THE REQUIREMENT IN THE MBA DEGREE OF
SUBMITTED BY: GUIDED BY:
1
1
PREFACE
The basic aim of undergoing training is to acquire practical knowledge of the market. As
a management student, it was a pleasure to undergo practical training at the Balaji Wafers
Private Limited and submit a report on the same to my college.
The basic aim of undergoing this training program was to evaluate my ability to apply
& put into practice the marketing concepts that I have studied so far. This report is based on
the Market Survey of dealer and Retailers relationship at Ahmedabad City for Balaji Wafers
Private Limited.
The company wants to know the satisfaction level of retailers and trying to maintain
their market share in the Gujarat and they are trying to increase their share in the national
market of wafer and namkeen industry.
2
2
ACKNOWLEDGEMENT
No endeavor is complete without acknowledging those who have helped to make this project a
success. As such I would like to thank all those
who have helped me to complete this project. It
was, indeed, very prestigious for me to undertake
my Summer Training project at the Balaji Wafers
Private Limited.
To begin with, I would like to express my deep sense of gratitude to Balaji Wafers Private
Limited, for providing me with an opportunity to
do my Summer Training at their esteemed
organization.
I am very thankful to Mr. Jay Sachdev (Area Sales
Manager), for giving me the support, co-operation
& the necessary help required for the successful
completion of this project.
3
3
EXECUTIVE SUMMARY
4
4
The present FMCG industry is highly influenced by snack food industry. Snack food industry
have 25% of growth out of it wafers and namkeen play a vital role and Balaji wafers pvt. Ltd.
enjoy highest market share of wafers and namkeen in Gujarat.
With a view to evaluate & study, the market research and potential of the Retailers and to
know the preferences of consumers, a survey was conducted in the town of Ahmedabad to
find out the relationship between dealer and retailers.
Survey is conducted for the retailers of Balaji wafers for knowing the services of Balaji. So
project was mainly focused to know the exact market situation of the product and knowing
the service level which is provided by the Balaji to their retailers. The city of Ahmedabad is
quite a lucrative market for snack food because, the people of the city are highly taste
conscious & are always ready to try out new varieties of food products and food-items
The main objective of conducting this survey was to find out relationship of dealer and
retailers. And to know the expectations of services from the retailers & to know who are the
major competitors in the market of wafers and namkeens.
I undertook a survey of Retailers at various areas of Ahmedabad. One questionnaire is
prepared for taking the views of retailers. Sample size was taken to be 100 for Retailers.
5
5
INDEX
Sr No. PARTICULARS Page
no
.
1 RESEARCH DESIGN And METHODOLOGY
1.1 Objective
1.2 Research Design
1.3 Methods Of Data Collection
1.4 Sample Design
1.5 Sample Procedure
1.6 Tools and Techniques of Data Collection
1.7 Limitation of Study
2 SNACKS FOOD INDUSTRY PROFILE
2.1 Introduction
2.2 Profile of the snack food industry of India
3 BALAJI WAFERS COMPANY PROFILE
3.1 Introduction of BALAJI WAFERS PVT. LIMITED
3.2 Mission statement of BALAJI GROUP
3.3 Vision statement of BALAJI GROUP
3.4 Strategy of the BALAJI GROUP
3.5 Organizational Structure of BALAJI WAFERS Pvt.Ltd
3.6 The Plant
3.7 Research and Development
3.8 Products of BALAJI WAFERS Pvt. Ltd.
3.9 Distribution Network of BALAJI
3.10 Distribution channel of BALAJI WAFERS Pvt. Ltd
3.11 Market Development
3.12 Competitors of the BALAJI WAFERS and NAMKEEN
6
6
3.13 SWOT Analysis
3.14 Information of Exports
3.15 Future Plans
4 PRODUCTION ASPECT
4.1 Manufacturing Process
4.2 Production Technology
4.3 Plant Location
4.4 Plant Location of BALAJI WAFERS Pvt. Ltd
4.5 Plant Layout
4.6 Production Planning and Control
4.7 Quality Control Activities
4.8 Steps in Quality Control
4.9 Techniques of Quality Control
4.10 Maintenance Related Activities
4.11 Types of Maintenance
5 MARKET SURVEY OF RELATIONSHIP BETWEEN
DEALERS AND RETAILER
6 Key findings
7 SUGGESTIONS / RECOMMENDATIONS
8 CONCLUSION
9 BIBLIOGRAPHY
10 Annexure
7
7
RESEARCH DESIGN
METHODOLOGY
8
8
&
1. RESEARCH METHODOLOGY
1.1 OBJECTIVE:-
The main objective of the project is to find out the relationship between retailers and
dealers of corresponding areas.
Other objectives of the marketing research project are as follows:
To study current scenario of wafer market
To find out Awareness of the Balaji’s products i.e wafers and namkeens in retailer.
To Find out the services provided by dealers to retailers.
To know about Timely delivery of goods by dealers.
To know the satisfaction level of the retailers through survey of retailer.
Finding the scope of new product through retailer survey. i.e whether retailers are
ready to sell new product of Balaji.
9
9
1.2 RESEARCH DESIGN
This Research is more related to descriptive type because the retailer’s knowledge, beliefs,
and satisfaction of services can be judge through this type of research. Descriptive study may be
necessary in other cases when a descriptive study could be taken up are, when researcher is
interested in knowing the proportion of the people in a given population who have behaved in a
particular manner, making projections of a certain thing, or more variables.
10
10
1.3 METHODS OF DATA COLLECTION
The data has collected in two ways.
1. Primary data
2. Secondary data
Primary data: -
Primary data is to be collected to know the retailers , preferences and belief. Primary data
are those, which are collected for the first time, and they are original in character. A suitable
combination of Questionnaire techniques, Personal interviews & discussions with the respondents
are used to collect the required Primary data. Findings of the primary data focus on the retailers
of the Balaji Wafers. Primary data gives higher accuracy and facts, which is very helpful for any
research and its findings.
Data is to be collected through primary research conducted in the city of Ahmedabad in the
areas where the services are perceived to be poor or questionable. The survey was conducted in
places like General stores, Grocery shops, Pan shops, Provision stores, Dairy farms etc. A
questionnaire of 19 questions will be used to gather their opinion.
Secondary data: -
The secondary data are those, which are already collected by someone for some purpose
and are available for the present study. Secondary data are to be collected from the magazines,
websites and other such sources.
11
11
1.4 SAMPLING DESIGN
Sample plan: -
Sample Size: -
No particular statistical technique was used to determine sample size for the survey
research. Large samples give more reliable result than small samples so it was decided to
collect the information of 100 respondents.
Retailers: 100
1.5 Sampling procedure: -
For Survey of the Retailers the responses had recorded by giving the questionnaires to
them and provide them all the information about the purpose so that they can give true
information.
Types of Sampling: -
In this study of retailers, the sample size is 100 and the type of sampling is quota
sampling because out of 100 retailers it was distributed like that each retail shops are taken
who are selling the products of Balaji into equal proportion which is given below:
1) Pan Corners
2) General and Provision Stores
3) Dairy Farms
4) Tea Stoles
5) Grocery Stores
6) Restaurants and Ice-cream Parlor
12
12
1.6 TOOLS AND TECHNIQUES OF DATA COLLECTION
Questionnaire method:-
For the Descriptive types of research the tools for collecting data from the samples is
questionnaire method. Questionnaire includes both closed-ended as well as open-ended questions.
The Wafers and Namkeen retailer’s questionnaire includes 19 questions.
Observation method: -
Some data are not getting directly from the respondents so I have to use the observation
method. For this research the observation method is also used to collect the information.
1.7 Limitations of the study
I. The research is done only in limited area.
II. Some retailers provide biased information.
III. It is difficult to predict the satisfaction level of Retailers after getting the sample of
100 retailers because in Ahmedabad the number of retailers, who are keeping the products of
Balaji, is very large.
13
13
14
14
2.1 INTRODUCTION
This report briefly describes the snack food market, in particular the Potato Chips segment
in India. The size of the Indian Snack food market is currently estimated at approximately US$
375 million. The total size of the Indian snack food market is at an estimated over 400,000 tons in
volume terms and Rs100bn in value terms and is growing at over 10% for the last three years
Unorganized small companies with a localized presence dominate the snack foods market in India
but in recent years the organized branded products market size has grown significantly. Potato
chips constitute the major segment among a wide range of local snacks available.
According to industry sources, the market for branded chips has been growing rapidly at
approximately 20 % annually. Many major companies have signed up exclusive sourcing
agreements with local farmers for procurement of various raw materials. A wide well-established
distribution network, attractive packaging, and promotions targeted at children to increase
consumption have been some of the main factors for increasing market share of leading players.
To increase consumption and encourage first-time purchase, many players have started
introducing their products in smaller pack sizes at a lower unit price.
Consumer preferences and tastes vary widely across the different regions of the country.
Banana chips for instance, which are very popular in the southern part of India do not find many
takers in other parts of the country. Penetration of snack foods is highest in North India as
compared to other parts of the country.
With Indian consumers constantly looking for variety, customers becoming increasingly
health-conscious and with positive factors being attributed to packaged products, snack food
companies are now increasingly emphasizing on newer snack food items and better quality
packaging for their products.
15
15
2.2 PROFILE OF THE SNACK FOOD INDUSTRY OF INDIA
In the diverse market of packaged snacks, every region has its specialty and each city, its
local favorite, which make for high entry barriers. Here are some facts and figures which
represents the snack food industry.
Growth of Indian market for salted snacks 5.7% (By Volume)
Growth of Indian namkeen market 5.9% ( By Volume)
6.3% ( By Value)
Snack foods market sales More than Rs. 1600 crores
Potato Chips Market Revenue 85% of the total market for snacks
Estimated Market Size $900 million
Exports 40 % of the Total market of food
industry.
Contribution of Sev-Bhujia to industry 26.4 % in the snacks market
Contribution of Banana Chips 3.1% to total branded sales of namkeen
Haldiram dominates by covering 60% share in dal and bhujia market
16
16
MAJOR POTATO CHIPS MANUFACUTRE COUNTRIES
FOR YEAR 2010
COUNTRY PRODUCTION ( in’000) tonnes
China 5878
India 4430
Turkey 3624
Iran 3388
Bangladesh 3704
Indonesia 3012
Pakistan 3449
17
17
COMPANY PROFILE
18
18
3.1 INTRODUCTION OF BALAJI WAFERS PVT. LIMITED
The journey of Balaji Group is started in a year 1976 by the member of virani family. For
supplying wafers and namkeens of local brands to the patrons of Astron Cinema, Rajkot. Due to
the short supply of that product they decided to make their own product line in a year 1982.
By the overwhelming retail success they inspired to set a semi automatic plant.
Instead of preparing wafers by the traditional frying method this semi automatic plant boosted the
quality, taste and more sales also. The fame of taste reached to the whole Gujarat hence it was
time to take over the whole Gujarat so the biggest automatic plant of Gujarat came into the picture.
In the initial stage Balaji Group had set up their plant at Aji Vasahat (Industrial
Zone, Rajkot) with their new concept of making the potato chips. The main benefit they got is the
readymade infrastructure availability due to which their cost is reduced to larger extent. They have
operated over there around 20 to 22 years.
Now Balaji Group has set up their new fully automatic plant at Metoda G.I.D.C. which is
in the area of the village named Vajdi(vad).
Quenching the demand of Gujarat, Maharashtra and Rajasthan region Balaji Group is now
looking forward to march over India.
19
19
“THE WAFER SULTANS”
Chandulal Virani and his brothers came to town two decades ago to run a canteen in a
cinema hall on contract, saw the immense potential for the wafers they introduced and went on to
conquer the wafers market in the state.
This is the summary of the success story of Mr. Chandulal Virani and his brothers
Meghjibhai, Bhikhubhai, and Kanubhai, whose Balaji Wafers has a 90% of the market share in the
Gujarat State.
Chandulal Virani, now the managing director of Balaji Wafers, remembers those days
when family sold roasted groundnuts, sandwiches and potato wafers to the cine-goers. Right from
those days, they believed in reasonable pricing and good quality. This earned them a good
turnover, though the profits were little lower.
They received feed backs from their customers about the quality of the stuff and stuck to
the highest standards of quality. As the demand increased, they stopped buying wafers from
outside and started making it. They sold the wafers around the Astron theatre also. This was the
first step in setting up the business. At that time they had only two assistants who helped them in
wafer production.
Chandulal opened an independent retail outlet in 1983-84 to sell wafers and sandwich
which are known as Balaji Sandwich, which also has a good quality. Chandulal said is his primary
concern which gets priority over taking on the multi-national brands.
They installed a semi-automatic plant in 1993-94. The plant had a capacity to produce 180
kgs. of wafers a day. Without machines they were able to produce about 60 kg of wafers a day. At
that time the production division was under the supervision of Chandulal Virani, while
Bhikhubhai and Kanubhai looked after sales and marketing.
20
20
After conducting the research to find out how companies abroad stored the wafers fresh,
they installed a modern automatic plant in 2000. The new unit has a higher capacity for production
with the same quality level.
Balaji Wafers Private Limited manufactures and supplies potato chips plus a variety of
mixed fried snacks called namkeens to the populace in Gujarat. The Balaji 35 grams bag of potato
chips (salted or Masala) retails at mere 5 rupees. Its biggest bag is 200 grams package retailing for
20 rupees. However, it produces some 5 tons of this product per day ( approximately 19,000
tonnes per year), ranking in some US$ 15 million per year for this enterprise.
Situated in Rajkot, an hour’s plane ride from Mumbai, the ethnic market producer has just
opened its third and latest manufacturing plant to date. According to its founding members, the
factory has the largest potato chip processing line in the whole of Asia.
This family- owned enterprise, now in its 24th year of operation, has 19 products to offer
the snack-hungry population of cinema-goers in Gujarat: from potato chips to banana chips and
even fried chickpeas with sautéed spices.
The management of the enterprise is done by family members only.
Chairman - Mr. Bhikhubhai Virani
Managing Director - Mr. Chandubhai Virani
Technical Director - Mr. Kanubhai Virani
R&D Director - Mr. Keyur Virani
Currently it is situated at Vad Vajdi Kalawad Road, Dist. Rajkot. The Balaji plant covers
85,000 square meter area in the Rajkot city. Its big taste revenue i.e. turnover touched to the crore
rupees milestone.
Balaji Group has 90% share of wafers market and 70% shares of namkeen market in
Gujarat.They are inviting all to travel the past, present and the future of Balaji Group.
21
21
3.2 MISSION STATEMENT OF BALAJI GROUP
Balaji Group has mission in relation with the health of the people. The mission statement of Balaji
is :
“To Provide healthy and hygienic food to people at an economic prices.”
The above mission statement of the Balaji Group shows that they are caring for the people of the
society for their health and economic conditions.
3.3 VISION STATEMENT OF BALAJI GROUP
“At least one product for every occasion” is a clear cut vision of Balaji Group.
This vision meets the buying capacity of an average Indian and it also reflects the motto to provide
best quality product line.
At present company has a Lion’s share in Gujarat and high volumes of sales in
Maharashtra and Rajasthan region. To date company get 20% growth per year and marching
towards new horizon of success. Any time, any where, with Balaji Group get the fruits of their
Vision.
3.4 STRATEGY OF THE BALAJI GROUP
This simple mantra rocked and changed the definition of a chip world.
Winning the heart by quality and great taste and distributing sufficient dealer margin is a
winning strategy of a Balaji Group.
Its ‘Value for Money’ strategy enables even a kid to buy fresh and healthy food in
small prices. Indeed a in a neck to neck competition era one must implement new ideas and Balaji
Group has developed the “Think Tank” who continuously update strategy in the right direction.
22
22
3.5 ORGANIZATIONAL STRUCTURE OF BALAJI WAFERS Pvt.Ltd.
CHAIRMAN
MANGING DIRECTOR
TECHNICAL DIRECTOR RESEARCH
&DEVELOPMENT
DIRECTOR
GENERAL MANAGER
PRODUCTION
MANAGER
MARKETING
MANAGER
FINANCE
MANAGER
SUPERVISOR AREA SALES
MANAGER
CHIEF
ACCOUNTANT
WORKERS SALES
EXECUTIVES
CLERK
23
23
3.6 THE PLANT
The existing plant of Balaji Wafers Private Limited is largest in capacity and with the state
of art facility. In the year 2003 Balaji group took pride to introduce this biggest fully automated
Potato processing machinery plant in India which can process 4500 kg of potatoes and make 1200
kg of chips per hour.
The namkeen and other product line has separate departments and it has been produced in
a same quality conscious processing system. Chips and namkeens made in bacteria free and
stringent hygienic standard environment. That is the big advantage of this big ‘Balaji’ plant.
3.7 RESEARCH AND DEVELOPMENT
Balaji Wafers are one of the leading brands in the snack food industry of India. They have
a fully automatic plant for producing wafers and other namkeen products. Balaji wafers have 19
products including the different flavors of wafers and namkeen products.
Balaji Wafers has quality and strong distribution network with lower prices. Their quality
is the best in the whole industry. The main reason behind the quality level is the strong activation
of the Research and Development Department to continuously improvement in the quality.
Balaji Wafers have a big laboratory for the new researches with the latest equipments for
the testing the raw materials as well as the finished products.
Under the strict laboratory tests each and every batch of raw-material of each kind of
products whether it is of wafers or it is of namkeen products passes and checked by the tests. After
testing if the quality is upto the mark then it will go further for processing.
24
24
3.8 PRODUCTS OF BALAJI WAFERS Pvt. Ltd.
Sr.No. Product Name Ingredients
1) Potato Masala
Wafers
Choicest Potatoes, Edible Oil,
Chilly Powder, Iodized Salt,
Spices and Condiments
2) Potato Salted
Wafers
Choicest Potatoes, Edible Oil
and Iodized Salt
3) Tomato Masti Choicest Potatoes, Edible Oil,
Chilly Powder, Iodized Salt,
Sugar Spices, Condiments and
Added Flavor
4) Chat Chaska Choicest Potatoes, Edible Oil,
Chilly Powder, Iodized Salt,
Spices, Condiments and Added
Flavor
5) Banana Mari
Wafers
Choicest Bananas, Edible Oil,
Iodized Salt and Pepper Powder
25
25
6) Banana Masala
Wafers
Choicest Bananas, Edible Oil,
Chilly Powder, Iodized Salt,
Spices and Condiments
7) Farali Chevdo Choicest Potatoes, Edible Oil,
Peanuts Splits, Sugar Powder,
Chilly Powder, Iodized Salt,
Spices and Condiments
8) Chana Dal Choicest Gram Splits, Edible
Oil, Chilly Powder, Iodized
Salt, Spices and Condiments
9) Mung Dal Choicest Kidney Bean Splits,
Edible Oil, and Iodized Salt
10) Masala Peas Choicest Peas, Edible Oil,
Chilly Powder, Iodized Salt,
Spices and Condiments
26
26
11) Shing Bhujia Peanuts, Gram Flour, Edible
Oil, Black Gram Flour, Iodized
Salt, Spices and Condiments
12) Ratlami Sev Gram Flour, Edible Oil, Math
Beans Flour, Chilly Powder,
Iodized Salt, Spices and
Condiments
13) Aloo Sev Potato Powder, Edible Oil,
Gram Flour, Starch, Chilly
Powder, Mint Oil, Iodized Salt,
Spices and Condiments
14) Tikha Mitha Mix Gram Flour, Edible Oil, Rice
Flakes, Corn Flakes, Peas,
Green Gram, Peanut Splits,
Sugar Powder, Curry Leaves,
Sesame, Coriander, Black
Pepper, Cumin Seeds, Ajowan,
Iodized Salt, Spices and
Condiments
15) Khatta Mitha
Mix
Edible Oil, Corn Flakes, Rice
Flakes, Gram Flour, Roasted
Gram Splits, Sugar Powder,
Peanuts Splits, Sago, Curry
Leaves, Amchur Powder,
Turmeric Powder, Black Salt,
Iodized Salt, Spices and
Condiments
27
27
16) Masala Shing Choicest Roasted Peanuts,
Chilly Powder, Spices and
Iodized Salt
17) Gathiya Gram Flour, Black Pepper,
Edible Oil, Ajowan and Iodized
Salt
18) Chataka Pataka
(Tangy Tomato)
Rice Meal, Edible Oil, Tomato,
Corn Meal, Gram Flour, Spices
and Condiments, Iodized Salt,
Added Flavor
19) Chatka Pataka
(Masala Masti)
Rice Meal, Edible Oil, Corn
Meal, Gram Flour, Spices and
Condiments, Iodized Salt,
Added Flavor
28
28
3.9 DISTRIBUTION NETWORK OF BALAJI
When thinking about channels of distribution arrangements one must always remember
that the goals of the various firms in the channels may diverge from one another. This is natural
since various members are separate firms with distinct business models.
Take, for example, a manufacturer who sells products through a retailer. While a
manufacturer is devoted to its own products, a retailer (and other distribution partners like
"distributors") typically sells the products of many manufacturers. A manufacturer may want to
educate customers about its own product, while the retailer may not want to bear the costs (or have
the expertise) to provide product education. In fact, a retailer may simply be interested in pushing
the products of any manufacturer that provides the highest margin. This is not surprising because,
again, the manufacturer and retailer are separate firms.
The wheel of network is devised under the ideal distribution channel network. That ensures
to supply fresh product in any corner of Gujarat within 24 hours. You can have snack of Balaji in
every 100 metres of area in Gujarat. At Balaji it is not just distribution but it is an euphemistic
effort of team work.
29
29
3.10 DISTRIBUTION CHANNEL OF BALAJI WAFERS Pvt. Ltd.
Source: Balaji Wafers Pvt Ltd.
MANUFACTURER
SOLE DISTRIBUTOR
(KATARIA)
SALES AGENCIES
DEALERS
RETAILERS
CUSTOMERS
30
30
3.11 MARKET DEVELOPMENT
Apart from being easy to produce, snacks are ubiquitous. The key marketing issues here
are margins and consumer preferences. The Research and Development Director Mr. Keyur Virani
says Packaging is also playing a key role beyond being just a good, pilferage-proof and catchy
delivery system. A look at the snack foods business shows that it is clearly targeted for ease of
carrying and eating, even in the city’s notoriously crowded suburban trains.
A report by A.C. Nielsen India ( Retail ), estimates that this category of food has a fair
chance of growing by about 25% in the next two years, due to various reasons like Multiplex
culture, snacking at home while watching T.V., pubs and bars ( where they are served free ).
For Potato Wafers, it is primarily the case of a commodity market largely turning
packaged. The retail audit suggests that growth in this segment is seen largely as a reflection of
consumer preference moving towards packaged goods. Besides Balaji Wafers, competitors in the
local potato chips market include brands like Frito Lay’s peppy, Uncle Chipps, with high visibility
advertising and trade promotions. Banana Chips is a sub-segment that is also fast catching on. A
predominantly southern phenomenon, Banana Chips now contribute approximately 5.1% to total
branded sales of namkeen, up from 3.7% in 2009, while volume contribution was 4.6% in 2010
Industry sources estimates that the market at far higher tonnage and value.
AC Nielsen’s retail audit shows that the large sales volumes are due to a marked
preference for ethnic foods, regional bias towards indigenous snacks and good value for money
perception
Further expansion plans are already in the pipeline for Balaji Wafers. Mr. Keyur Virani
says, “A range of snack products will be rolled out to other parts of the country in 3 to 4 years
time”.
31
31
3.12 COMPETITORS OF THE BALAJI WAFERS AND NAMKEEN
There are two kinds of competitors which Balaji have to keep in mind while operating in
the market. For the Wafers Segment they have different competitors and for the namkeen segment
they have different competitors
Competitors in the Wafers and Namkeens Segment:
Lays wafers Cheetos
Leher(PepsiCo)
Bingo (ITC LTD.)
Kurkure
Samrat
A-top (Ajanta Groups)
Everest wafers
Haldiram
Uncle Chips
Sushma
32
32
Musst Bite (Amul)
Munch Time
Hariom
33
33
3.13 SWOT ANALYSIS
The study of this SWOT analysis shows that the ‘strengths’ and ‘opportunities’ far
outweigh ‘weaknesses’ and ‘threats’. Strengths and opportunities are fundamental and weaknesses
and threats are transitory. Any investment idea can do well only when you have three essential
ingredients: entrepreneurship (the ability to take risks), innovative approach (in product lines and
marketing) and values (of quality/ethics).
1) Strengths: -
Financially sound :
Balaji Wafers is a family-owned enterprise. Four Brothers have started the company with 60%
owner’s capital and 40% loan. So they have their own money in the business. So they are
financially sound.
Good quality at reasonable price :
Balaji Wafer’s main strength is the best quality at the reasonable price which is affordable by the
all the classes of a society. Everyone is capable of buying the best quality food at a reasonable
price.
Strong Channel of Distribution :
Balaji is strong at their channel of distribution. They have sole distributor named “ KATARIA”
and under him they have many sales agencies who are operating the whole market at regional ,
national as well as international level. Within 24 hours they can supply fresh product in any corner
of Guajrat.
Quality of Raw Material :
Balaji is importing raw material especially grains from China and Thailand. Excellent peanuts and
bananas come from Gujarat and Western India and potatoes come from the Central India.
34
34
2) Weaknesses :
Raw-Material Cost :
Balaji is importing raw materials from the different countries and India for producing different
products. The cost of importing and the price at which they are importing the raw materials is
higher than what if they will purchase from the local players.
Limited production capacity
Balaji wafers have only one plant located in Rajkot and they have huge market share in Gujarat
region i.e. 90% in wafer market and 70% in namkeen market, due to limited production Balaji is
not able to expand there market in other regions of India and overseas.
Very less spending on advertisement
3) Opportunities :
Balaji Wafers have an opportunity to make reach their products in some of the
areas of the country where they still not reached.
At the international level they are exporting only to Dubai. So they must have to
increase the number of countries as their customers.
4) Threat s :
Giant players like PepsiCo. and ITC LTD. are present in the snacks market
Balaji’s main threat recently is emerging of new competitors, one is “A-top” from
Ajanta Group and the Second is “Oreva” from the Orpat Group. So due to new
competitors who also have very strong background Balaji have to take some steps
to tackle them.
35
35
3.14 INFORMATION OF EXPORTS
Balaji Wafers Private Limited is the second company who is exporting the namkeen
products to the other countries. The first company who is exporting the wafers and namkeen
products is Haldiram. So, it is the matter of pride for Balaji that they are also exporting the
namkeens and wafers to the other countries.
Balaji has started to export their snack products and they have select the first country for
export is “DUBAI. They are planning to export their food products to the other Asian countries
and African Countries.
Balaji uses planes for exports. At every 20 days they have fill up the lot for the planes for
exports to Dubai. Within few time period they have captured a good market in the Dubai due to its
quality and lower price of the products.
Balaji is exporting 10% of their total production and they want to increase their exports
with having a good domestic market which can be now possible through only expanding and
increasing their plant capacity.
36
36
3.15 FUTURE PLANS
Balaji Group perceive in growth rather say development to touch the sky. The
company will enhance its product range by adding some futuristic and Indian traditional
taste company will plan to some extruded snacks and western products to their Global
Market. Recently company has acquired more space where its entire namkeen unit will be
shifted.
The future plan is that company is now concentrating more on the Global Market.
Now a days Balaji Wafers operating in the market of Dubai at a global level. They are now
concentrating more on the other Asian countries so that they can compete at the global
level with the branded companies who are already in the international market with strong
market share.
Balaji is planning to introduce low fat and low calorific value snacks in market.
37
37
MARKET SURVEY
OF
RELATIONSHIP BETWEEN
DEALER
AND
RETAILERS
38
38
Total number of samples taken : 100
Types of samples taken :
# Pan centers - 70 # Provision Stores - 20 & ice cream parlours # Dairy Farms - 10
39
39
Number of Retailers selling Balaji products:-
Interpretation:-Out of 100 Retailers surveyed in Ahmedabad 98 are selling Balaji wafers and namkeens
and 02 are not selling Balaji products.
Main reasons of not selling Balaji products are as follows:
Irregular delivery by dealers.
Less demand
Selling own unbranded products.
No space for keeping Balaji Products.
Fewer profit margins for retailers.
Many Retailers are not selling Balaji products due to competition.
Yes, selling Balaji products No, not selling Balaji
products
98 02
40
40
Product awareness of all Balaji products sold by them :
Potato Masala wafers 100
Potato Salted wafers 100
Tomato wafers 100
Banana mari wafers 100
Banana masala wafers 100
Farali chevdo 100
Mung dal 100
Shing bhujiya 100
Aloo sev 99
Khatta mitha mix 100
Gathiya 96
Chataka pataka tangy 100
Chat chaska 98
Chana dal 100
Masala peas 100
Ratlami sev 100
Tikha Mitha 99
Masala Shing 100Chataka Masala 100
41
41
Interpretation:-
Few products like Ganthiya, Khatta Mitha mix, Tikha Mitha Mix, Masala Peas, Chataka
Phataka (tangy tomato) are less aware among the retailers as compared to other products.
The reason behind this is, Ganthiya, Khatta Mitha mix and Tikha Mitha mix are
comparatively new products.
Most sold products are:
Potato salted wafer
Potato masala wafer
Tomato wafer
Farali chevdo
Aloo sev
Least sold products are:
Ganthiya
Thikha mitha mix
Khatta mitha mix
42
42
Chataka pataka (tangy tomato)
Masala peas
The reasons for fewer sales of these products are:
Less awareness among retailers and customers.
Less demand.
Loose Ganthiya are preferred by customers.
43
43
Number of retailers getting necessary services by dealer.
Interpretation:-
From 100 retailers, 02 are not selling Balaji products and out of 98, all 98 are
getting necessary services and 02 are not selling Balaji products so they don’t know about the
services provided. The reasons are as under:
Few retail shops are remotely located, so a dealer is not able to provide necessary
services.
The other reason is that, some retailers have less requirement so sales executives
don’t visit often.
Dealer has very large area to cover so sometimes it is difficult to satisfy all the
retailers.
Yes 98No 0Don't know 2
44
44
Services offered by dealers to retailers:
# Delivery - 100
# Co operation - 99
# Product awareness - 99
Interpretation:-
Only a single retailer is not satisfied by the delivery services provided by dealers.
Replacement of rat cut products is not provided by dealer.
Most of the retailers are satisfied by dealers’ co-operation.
One retailer in market yard is facing the problem of product awareness as supplier does
not provide information about new launched products.
The dealer is able to deliver the goods properly and timely to retailers who are remotely
located. The dealer also visits retail shops often which have less turnover.
As Balaji is fast selling product replacement of goods is not much required by retailers
although some retailers require replacement sometimes. Some times dealers fail to replace the
45
45
expired goods timely. Dealers also do not entertain the replacement of rat cut goods which is
often asked by retailers like grocery store and general stores. Most of retailers are satisfied
with the co-operation of dealers, but few retailers have problems dealing with sales persons,
who sometimes makes mistake in accounts and do the foul practice. The retailers of remote
and village places are satisfied with the services (delivery).
46
46
Variety of Balaji products that this retailers are keeping :
Sale of products
Potato masala 98
Tomato wafers 51
Banana mari wafers 76
Farali chevdo 47
Mung dal 82
Shing bhujiya 74
Aloo sev 42
Khatta mitha mix 20
Gathiya 23
Chataka pataka(Tangy) 30
Potato salted wafers 98
Chat chaska 51
Banana masala 75
Chana dal 67
Masala peas 44
Ratlami sev 32
Tikha mitha 16
Masala shing 91
Chataka pataka masala 48
47
47
Main products sold by retailers are potato masala, potato salted and masala shing,
mungdal, shing bhujia, banana wafers comes second, and khatta mitha mix, gathia,
chataka, tikha mitha etc. are very less sold by retailers.
Frequency of delivery of Balaji Products given by dealers.
48
48
Fortnightly - 00
Once in week - 07
Twice in week - 93
More than once in week- 00
Interpretation:-
00 retail shops receive delivery service fortnightly, which include remotely located
shops and shops that have less demand of products.
02 retail shops are never visited by salesperson as they don’t sell Balaji.
07 retail shops receive delivery once in a week, due to less demand of product.
00 retail shops receive delivery more than twice in a week.
93 retail shops receive delivery twice in a week as per the policy of a company.
49
49
Number of Retailers facing problems regarding time of delivery:-
Yes - 01
No - 99
Problems faced by Retailers regarding time of delivery are as follows:
Time of visit is uncertain.
Irregular visit of salesperson.
Retailers have to call for placing order.
No fix time of visit.
Salespersons come at time when shops are closed especially in afternoon.
Timely delivery problems during feistivals like janmastmi, navratris, etc.
Retailers getting all the products of Balaji.
Yes all 100 retailers are getting almost all the products of Balaji. They are not facing any
problems in that. Supplier is providing them with all the new products.
50
50
Interpretation:-
Out of 100 Retailers selling Balaji Wafers products, retailers are getting all the
products that they demand except some rare products which are not in much demand.
Retailers are not getting few products of Balaji like Aloo Sev, Ganthiya, etc.
Also retailers sometimes get less quantity then demanded by retailers.
Problem of getting all products rises at the times of festivals.
51
51
Satisfaction level of retailer by dealer services:-
Out of 100 retailers that are selling Balaji Wafers, satisfaction level of almost all retailers
are above average, which is good. The company should try to increase the satisfaction level of
retailers. The company should make efforts so that the more and more retailers are in highly
satisfaction level.Dealer should provide basic services like delivery, replacement and co-
operation. Also the company should give the trade promotion to retailers. Scheme should be
introduce to encourage the larger purchase by retailers by offering discount on large bulk
purchase.
Highly
satisfied Satisfied Average Dissatisfied Highly Dissatisfied
97 01 00 00 00
52
52
Other products sold by the retailers other than Balaji products :
Sale of other products
Lays 42
Kurkure 59
Everest 48
Bingo 35
Samrat 37
Haldiram 12
Atop 18
Cheetos 41
Local brands 9
No other products 22
53
53
Interpretation:-
Top five brands sold by retailers are:
1. Balaji wafers.
2. Kurkure.
3. Everest.
4. Cheetos.
5. Bingo.
Retailers prefer to sell other brands because of following reasons:
Samrat namkeen is more tasty than Balaji namkeen
Due to customer’s demand
Retailer can offer more varieties to customer
Local products have higher profit margins
Few brands provide good promotional schemes
Few brands provide display stands, banners, boards, etc
Some niche segment of customers prefer premium brands i.e. bingo, lays.
54
54
Numer of retailers who think Balaji is competitive enough with other products :
Yes – 100
No - 00
Interpretation:
Out of 100 retailers, all 100 retailers believe that Balaji products are competitive enough due to
foll1owing reasons:
Quality of a product
Quantity of a product
Regular delivery
Numbers of product.
Balaji is competitive enough because its belief in offering “Quality products at economic rate”.
The distribution channel of Balaji wafers is good. The margin to the retailers are also fair.
And some have negative response due to following reasons:
Balaji Namkeens are less spicy as compared to samrat.
Promotional activities are very less like schemes and advertising.
55
55
Criteria for which people accept Balaji products:
CRITERIA RANK
TASTE 1
QUANTITY 2
QUALITY 3
PRICE 4
BRAND IMAGE 5
VARIANTS 6
AVAILABILITY 7
Interpretation:-
Above table represents ranking given by retailers for the criteria for which people
accept Balaji wafers products.
Customers prefer Balaji mainly due to Quality, Quantity, and Taste. Retailers are
less aware about new products. Price is same
56
56
Number of Retailers getting all the necessary information regarding products/ new products of Balaji wafers:
Yes – 99
No - 01
Interpretation
Out of 100 retailers, 99 retailers get required information by dealer and 1 retailers do not
get required information.
Sales persons do not give information spontaneously retailers have to ask for information.
Response given by retailers for introduction of new product in market by Balaji wafers;-
Yes – 06 No - 94
Interpretation:
Out of 100 retailers, 06 retailers are having positive response for introduction of
new product by Balaji wafers and 94 retailers are not in favor of introduction of any new
product by Balaji.
57
57
Few suggestions given by retailers about introducing new
products :
Bikaneri sev
Khakhara
Lasun sev/ sev mamara
Lasun sing
Cheese balls
Fries
Bhakharvadi
Pudina sev
Wheat mamra
Papad
Cheese and onion wafers
Popcorn
Chakri
Balaji should introduce snacks with low fat and low calorific value. Today the customers
are more health conscious. This low calorie products will cater the customers which are
health conscious.
58
58
Most of retailer’s complaints are about fewer profit margins, no supply of hangers, stands and
hoardings for advertising.
New products like Ganthiya, Tikha Mitha Mix and Khata Mitha Mix are less aware among
retailers as well as customers.
Supply of goods fluctuates very much especially during festivals.
Product range is less as compared to Samrat Namkeens and Haldiram Namkeens.
Balaji is competitive enough according to the retailer
Some retailers sell other brands because those brands provide stands, hanger, and banners
for e.g bingo.
Only few reailers are highly satisfied.
60
60
Suggestions / Recommendations given by retailers to Balaji wafers are as follows:
Balaji wafers should increase promotional activities i.e Balaji should provide
discount to retailers for large quantity purchase.
Balaji wafers should provide stands/hanger free of cost to retailers for displaying
products.
Balaji wafers should increase profit margin of retailers. Because Balaji’s Profit
margin is less as compared to other Brands.
Balaji wafers should increase the supply of products like Aloo Sev.
Balaji wafers should increase advertisements.
Regularity in supply of products, especially in festivals.
Balaji wafers should provide their banners and electric board to retailers to attract
customers.
Balaji Namkeens should be made spicier.
Company’s representatives should take visit of retailers frequently.
Sales Persons should be trained to behave properly.
Smaller area should be assign to dealers.
Products like ganthia should demonstrate properly.
62
62
CONCLUSION
During my visit to BALAJI WAFERS PVT. LTD., I collected all the information about
the company. The effect of this industrial visit cannot be expressed in words. These types of
visit are more useful. It becomes helpful for exploring knowledge about how business actually
runs and also helps to know the current scenario of market. It is helpful in finding out the gap
between practical learning and theoretical learning.
I have come to conclude the following points for the success of company at the end
of this report.
Company is ideally located and easily fulfills its requirements.
The company has large market share in Gujarat then its competitors.
The company is progressive as well as reputed in the market.
Good relations with internal as well as external customers.
Relations between Dealer and Retailers are good but need to be improve.
63
63
BIBLIOGRAPHY
Books :
Marketing Management by Philip Kotler
Business Research Methods - Donald Cooper & Pamela Schindler
Websites :
www.balajiwafers.com
www.asiapacificfoodindustry.com
www.indiamart.com
www.factsfiguresandfuture.com
Magazine :
Agri and food industry
64
64
BALAJI WAFERS (P). LTD.
VAJDI(VAD), KALAVAD ROAD, TAL: LODHIKA, DIST: RAJKOT
TEL: +91-281-2783755/56. FAX +91-281-2389300.
Questionnaire
Relationship between retailer & dealer
1. Shop name:_____________________________________________
2. Retailer name:__________________________________________
3. Address:_______________________________________________
________________________________________________
4. Ph no. ____________________(M)__________________________
5. Are you selling Balaji’s products?
□ Yes □ No
If “No” give reason:______________________________
6. How many items of balaji do you know from the following?
□ Potato malsala wafers □ potato salted
□ Tomato wafers □ Chat chaska
□ Banana mari wafers □ Banana masala wafers
□ Farali chevdo □ Chana dal
□ Mung dal □ Masala peas
□ Shing Bhujia □ ratlami sev
□ Aloo sev □ Tikha mitha mix
□ Khatta mitha mix □ Malsal shing
□ Gathiya □ Chataka pataka (Masala masti)
□ Chataka pataka (Tangy tomato)
66
66
7. How many type of product do you sell?
□ Potato malsala wafers □ potato salted
□ Tomato wafers □ Chat chaska
□ Banana mari wafers □ Banana masala wafers
□ Farali chevdo □ Chana dal
□ Mung dal □ Masala peas
□ Shing Bhujia □ ratlami sev
□ Aloo sev □ Tikha mitha mix
□ Khatta mitha mix □ Malsal shing
□ Gathiya □ Chataka pataka (Masala masti)
□ Chataka pataka (Tangy tomato)
8. Does dealers gives you necessary services?
□ Yes □ No
9. Please tick mark services offered by your dealer:
□ Delivery □ Replacement □ Co-operation
10. How many times do you receive delivery of Balaji wafers by dealers?
□ Fortnightly □ Once in a week □ Twice in a week
□ More than twice in a week
11. Are you facing problems regarding on time delivery?
□ Yes □ No
If “yes” what kind of problem?___________________________
12. Are you getting all the products of Balaji wafers?
□ Yes □ No
13. Are you satisfied with dealers services?
□ Highly satisfied □ Satisfied □ Average □ Dissatisfied
□ Highly Dissatisfied
Why:_________________________________________________
67
67
14. Are you selling any other food items except Balaji wafers?
□ Lays □ Kurkure □ Everest □ Bingo □ Samrat
□ Haldiram □ A-top □ Cheetos □ Local Brands
Why?______________________________________________________
15. Do you think Balaji is competitive enough with other available products?
□ Yes □ No
16. From which criteria people accept Balaji’s Product? (give rank)
□ Price □ Brand Image
□ Quality □ Variants
□ Taste □ Quantity
□ Availability
17. Does your dealer gives provides you with all the necessary regarding the Product/
New product of Balaji Wafers?
□ Yes □ No
18. Should Balaji Wafers introduce new product in market?
□ Yes □ No
which type of product?_________________________________________
19. Any suggestion?_______________________________________________
Any Time Crunchy All Time Fresh
Signeture of retailer: _____________
68
68
69
69