rahul gupta_sip report
TRANSCRIPT
2010
Rahul Gupta
IBS-Ahmedabad
5/13/2010
Mody Beverages Pvt Ltd (Mango Sip)
2
A REPORT
ON
LAUNCH OF MANGO SIP IN AHMEDABAD AND
DISTRIBUTION OF EXISTING PRODUCTS
By
RAHUL GUPTA
09BS0001766
MODY BEVERAGES PVT LTD
A report submitted in partial fulfillment of
the requirements of
MBA Program of
the ICFAI University, Dehradun
Distribution List:
Faculty Guide: Company Guide:
Prof. Ruchi Tewari Mr. Sanjay Datta
Date of Submission: 16th
April, 2010
3
ACKNOWLEDGEMENTS
The successful completion of this report would not have been possible without the co-
operation and support of our respected company and faculty guides, beloved friends, and our
institute of inspiration, ICFAI BUSINESS SCHOOL. We hereby acknowledge the relentless and
wholehearted support from one and all of our well-wishers and express everlasting gratitude
to….
…the Director, Mr. S. Kar of Surat Beverages for providing us an opportunity to work in his
esteemed organization and sharing his valuable ideas and market exposure. His gentle but firm
direction has been most appreciated.
…our company guide, Mr. Sanjay Datta (Regional Sales Manager), who was helpful in
making us understand the insights of real business environment by directing and guiding in
project assignments such as Unibic, Xotik and Mann Passand Agro.
…our faculty guide, Prof. Ruchi Tiwari (IBS-Ahmedabad) for imparting valuable guidance
and co-operation during the consolidation of our perception in the form of report, who provided
us the qualitative insights of work under our projects.
…our area sales manager, Mr. Madhusudan Pathak for their constant support and guidance
during field work.
Further, we are thankful to the sales officers Mr. Saurin Seth and all the people associated
with Mody Beverages directly or indirectly.
Our respectful thanks and acknowledgements go to the leading magazines, websites, books
and periodicals which have helped us a lot in our understanding the industry and express our self
in a better way.
Rahul Gupta
Batch- 2011
ICFAI Business School, Ahmedabad
4
Abstract
The project mainly focuses on the launch of a new product (i.e. Mango Sip), to determine
the initial steps of introducing a new product in the market and to convince the retailers to buy it.
Other than launch of Mango Sip the project focuses on increasing the sales of existing product.
The project also focuses on the methods to compare our products with competitor’s
product on the basis of different parameters and managing the distribution channel.
5
Contents
Introduction ............................................................................................................................................. 6
Objective of the Project ....................................................................................................................... 6
Methodology ....................................................................................................................................... 6
Limitations .......................................................................................................................................... 6
Fast Moving Consumer Goods (FMCG) .................................................................................................. 8
Indian FMCG Market .......................................................................................................................... 9
About the Company............................................................................................................................... 10
Company Profile................................................................................................................................ 10
Company SWOT Analysis ..................................................................................................................... 13
Industry Overview ................................................................................................................................. 14
India Biscuit Industry ......................................................................................................................... 14
India Non-Carbonated Soft drink Industry .......................................................................................... 15
Theory Overview ................................................................................................................................... 17
Product Life Cycle .............................................................................................................................. 17
BCG Matrix: ....................................................................................................................................... 17
Porters Five Model ............................................................................................................................ 19
The Sales Statistic .................................................................................................................................. 20
Sales Area ......................................................................................................................................... 20
Product-wise Sales............................................................................................................................. 21
Area-Wise Sales ................................................................................................................................ 22
Comparison of Sales .............................................................................................................................. 25
BCG Matrix Analysis ............................................................................................................................ 28
Product Life Cycle Analysis .................................................................................................................. 29
Porters Five Model Analysis ................................................................................................................... 31
Survey ................................................................................................................................................... 33
Mango Sip ......................................................................................................................................... 34
Unibic Cookies ................................................................................................................................... 36
Findings and Recommendations ............................................................................................................ 39
Learning ................................................................................................................................................ 40
References............................................................................................................................................. 41
6
Introduction
Objective of the Project
• Launch of Mango Sip.
• Understanding the whole distribution channel of new and existing products.
• To increase the sales of existing products (Unibic cookies, Jeera soda, Gallon mineral water).
• To study the visibility and policy of competitor’s product.
Methodology
• I will be visiting the retail outlets and will be explaining about the new product and try to
convince them.
• I will be visiting the distributor to know more about the distribution pattern and
maintaining of stock.
• To increase the sales of existing products I will tap the old retailers and will be taking the
feedback about the product. So that it will help me to tap new market and satisfy their
needs.
• To know about the visibility and policy of competitor’s product I will first make the
decent relation with the retailers and will get the information about competitor’s product.
Limitations
• Branding:
o Since the product is not advertised, retailers are unaware about the brand. Hence,
it is difficult to convince them for a deal. The company has not done any
promotional activity to make the product awareness due to which I am facing the
problem in convincing the retailers.
7
• Schemes:
o In spite of being a new product, there are no schemes available. This makes it
further difficult to attract retailers into buying an already unknown product. The
retailers are easily put off. They are more likely to ignore the deal since margin is
also very low for them.
• Cash Policy:
o Cash payment is the only option. After all the above limitations, the retailers
definitely think twice before making cash payment for an unknown product.
8
Fast Moving Consumer Goods (FMCG)
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples
of FMCG generally include a wide range of frequently purchased consumer products such as
toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as
other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG
may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks,
tissue paper, and chocolate bars.
A subset of FMCGs is Fast Moving Consumer Electronics which include innovative
electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and
Laptops. These are replaced more frequently than other electronic products.
White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs,
Music Systems, etc.
In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in
India. According to the AC Nielsen India study, the industry grew 5.3% in value between 2004
and 2005.
India's growing market for consumer goods, already in the top ten, could reach $400
billion by 2010—making it one of the five largest in the world.
9
Indian FMCG Market
The Indian FMCG sector is the fourth largest in the economy and has a market size of
US$13.1 billion. Well-established distribution networks, as well as intense competition between
the organized and unorganized segments are the characteristics of this sector. FMCG in India has
a strong and competitive MNC presence across the entire value chain. It has been predicted that
the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The
middle class and the rural segments of the Indian population are the most promising market for
FMCG, and give brand makers the opportunity to convert them to branded products. Most of the
product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita
consumption as well as low penetration level, but the potential for growth is huge.
The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid
urbanization, increased literacy levels, and rising per capita income.
The big firms are growing bigger and small-time companies are catching up as well.
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs,
and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these
are owned by Hindustan Lever. These are figures the soft drink and cigarette companies have
always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest
categories in FMCG. Between them, they account for 35 of the top 100 brands.
The top 10 companies in the fmcg market are as follows:
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
10
About the Company
Company Profile
Name of the Organization : MODY BEVERAGES Pvt. Ltd.
Form of Organization : Private Ltd.
Nature of business : Sales And Marketing of various FMCG products
Location of business : 705, Swagat Complex, Opp. Bodyline Showroom,
C.G. Road, Ahmedabad, Gujarat
Reach : Present in 6 states
Telephone Number : 9879203812
E-mail : [email protected]
Contact Person : Mr. Sanjay Datta
MODY BEVERAGES is a FMCG company dealing with various kinds of products. it is
handling sales of the products. The products that company is currently working with are:-
• MANGO SIP.
• APPLE SIP.
• JEERA MASAL SODA.
• UNIBIC COOKIES.
• GALLON MINERAL WATER.
• EDGE ENERGY DRINK.
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Mango Sip and Apple sip are manufactured by Manpasand Agro Food. It is Baroda based
company. Their popular brands in the fruit juice based beverages segment are - Mango Sip,
Guava Sip, Pineapple Sip and Orange Sip. These products are available in world-renowned
Tetra Pack and Pet Bottles. The Tetra packing contains 200 ml of beverage initially. However,
Pet Bottles are available in various denominations of 200ml, 300ml, 600ml ml & 1200 ml, in all
flavors subsequently. Our company deals only in two products i.e. Mango Sip and Apple sip.
UNIBIC Cookies was born in the land of Vegemite and outdoor barbeques – Australia.
UNIBIC Australia markets under a licensing arrangement with RSL (Returned Service Men
League). Brands like ANZAC enjoy iconic status as well as significant equity and historical
association in Australia and New Zealand. UNIBIC Australia has a range of over 40 products
including specialty Australian and European cookies, centre filled products and niche products
like Weight Watchers (under a joint venture agreement with Weight Watchers of USA). A
subsidiary of UNIBIC Australia, UNIBIC India Pvt. Ltd., has its factory and infrastructure in
Bangalore with state of the art machines from Italy. It is the first company to be setup with “wire
cutting” technology that is the only method available to make a real cookie. In addition to
providing world-class cookies, UNIBIC India Pvt. Ltd also has the necessary equipment and
packaging machinery for exports, which being both captive and strategic partners, require world
approved standards. To this end UNIBIC India Pvt. Ltd has just got its HACCP (Hazard
Analysis and Critical Control Point) certification from BRC (British Retailers Consortium)
certification.
Today, UNIBIC is Australia's fastest-growing, specialty biscuit company delivering
innovative quality products to National and International markets. These come in 50gm, 67gm,
110gm and 135gm. They believe “quality in everything we do”. UNIBIC India was incorporated
in August 2004 to produce world class biscuits in a niche, unique and premium segment. They
have field in Bangalore.
EDGE is an inventive and unique energy drink formulation, originated and produced in
Austria. Amongst its most important features is the fact that EDGE is fat free water based non –
alcoholic energy drink. EDGE energy drink kick starts your body and mind with its amazing
nutritional properties; with its power to rejuvenate, the strength to stimulate and the attitude to
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motivate. Not only it has a unique taste and kick, but also the packaging has a dashing and
unconventional look.
The main idea of this project is to learn the FMCG as a sector in beverage market. To learn
the distribution channel.and understands the working. The basic and first step of MARKETING
is sales and distribution channel and so I will try to learn these things step by step within this
project.
13
Company SWOT Analysis
• Strengths
o Good margin to Distributors and retailers. o Best quality product in its range. o Product Differentiation (Through better Ingredients contain). o Wide Flavors in Unibic Cookies (8 Flavors). o Doing Corporate Social Responsibility (product like Bradman, oatmeal good
example of CSR).
• Weakness
o Poor Supply-Chain management
o Lack of awareness of product & company
o Sales Records not maintained properly
o Needs to focus on Packaging & Color Combinations
• Opportunities
o India as potential Market for cookies and Mango Drink.
o Wide scope of product penetration
o Brand Promotion (e.g.,-promotion of CSR activities)
• Threats
o Real, Parle, Jumpin as major threat (Brand wise & Promotion wise)
o Lack of awareness
14
Industry Overview
India Biscuit Industry
Indian biscuit industry is the largest among all the food industries and has a turnover of
around Rs. 3000 crores. India is known to be the second largest manufacturer of biscuits, the first
being USA. It is classified under two sectors: organized and unorganized. Bread and biscuits are
the major part of the bakery industry and cover around 80% of the total bakery products in India.
Biscuits stand at a higher value and production level than bread. This belongs to the unorganized
sector of the bakery industry and covers over 70% of the total production.
Indian biscuit industry came into limelight and started gaining a sound status in the
bakery industry in the later part of 20th century when the urbanized society called for ready-
made food products at a tenable cost. Biscuits were assumed as sick-man’s diet in the earlier
days. Now, it has become one of the most loved fast food products for every age group. Biscuits
are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have larger
intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh.
Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount
of consumption of biscuits. Even, the rural sector consumes around 55% of the biscuits in the
bakery products.
The total production of bakery products have raised from 5.19 lakh tones in 1975 to
18.95 lakh tones in 1990. Biscuits contributes to over 33% of the total production of bakery and
above 79% of the biscuits are manufactured by the small scale sector of bakery industry
comprising both factory and non-factory units.
The production capacity of wafer biscuits is 60 MT and the cost is Rs. 56, 78, 400 with a
motive power of 25 K.W. Indian biscuit industry has occupied around 55-60% of the entire
bakery production. Few years back, large scale bakery manufacturers like Cadbury, nestle, and
Brooke bond tried to trade in the biscuit industry but couldn’t hit the market because of the local
companies that produced only biscuits.
The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future
of Indian Biscuit Industry. According to FBMI, a steady growth of 15% per annum in the next 10
15
years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also
surpass the target and hit the global market successfully.
The major brands of cookies in India are:-
• Parle
• Britannia
• Sunfeast
• Priyagold
• Feaster
• Dukes
• Cadbury
• Cookieman
Besides this there are some minor brands that are popular on regional level and locally
manufactured biscuits.
India Non-Carbonated Soft drink Industry
The non-carbonated soft drink (NCSD) sector can be classified Fruit drinks, Nectar and
Juices. The classification is based on the percentage of the fruit pulp content in the beverage.
Fruit drink has to have minimum fruit pulp content of 10%, while Nectar needs to have a
maximum fruit pulp content of 25%.
The total size of the branded noncarbonated beverages in the organized segment is
estimated at Rs.500crores. The Fruit drink segment is estimated at Rs.250-300crores, while the
Juice market (Branded & Packaged) is estimated at Rs 150crores.
Nectar is a small category of around Rs 35-50crores. In the fruit drink category, Parle’s
Frooti, Godrej’s Jumpin and Coca-Cola’s Maaza and Pepsi’s Slice are the major brands. In the
Nectar segment the key national players are - Dabur, Godrej Xs and Parle’s Appy. The two key
national level players in the juice segment are Tropicana and Real. Real is the market leader with
55-60% market share. Tropicana has an estimated share of 30-35%. Several local / regional
brands also exist, besides a huge unorganized sector.
16
The Juice category is the fastest growing segment at present, estimated to be growing by
20-25% p.a. The fruit drinks category has also been witnessing growth of around 5% p.a. The
main reason for this growth in the NCSD Category is the change of the consumer preference
from the carbonated to the non-carbonated soft drink sector mainly due to increasing Health
Awareness among consumers and the Pesticide issue relating to Coke and Pepsi.
In the Fruit Drink segment, Frooti is the clear market leader with around 85% market
share but in the NCSD category as a whole; its share has been declining because of the growth in
Fruit Juice segment. So, with the growth of the NCSD category, Frooti has to compete with all
the segments in this category to take a larger share of this growth.
17
Theory Overview
Product Life Cycle
A new product progresses through sequence of stages from introduction to growth,
maturity, and decline. This sequence is known as the product life cycle and is associated with
changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
The product revenue and profits can be plotted as a function of the life-cycle stages as
shown in the graph below:
BCG Matrix:
The BCG Growth-Share Matrix is a portfolio planning model developed by Bruce
Henderson of the Boston Consulting Group in the early 1970's. It is based on the observation that
a company's business units can be classified into four categories based on combinations of
market growth and market share relative to the largest competitor, hence the name "growth-
share".
18
Market growth serves as a proxy for industry attractiveness and relative market share
serves as a proxy for competitive advantage. The growth-share matrix thus maps the business
unit positions within these two important determinants of profitability.
This framework assumes that an increase in relative market share will result in an
increase in the generation of cash. This assumption often is true because of the experience curve;
increased relative market share implies that the firm is moving forward on the experience curve
relative to its competitors, thus developing a cost advantage. A second assumption is that a
growing market requires investment in assets to increase capacity and therefore results in the
consumption of cash. Thus the position of a business on the growth-share matrix provides an
indication of its cash generation and its cash consumption.
Henderson reasoned that the cash required by rapidly growing business units could be
obtained from the firm's other business units that were at a more mature stage and generating
significant cash. By investing to become the market share leader in a rapidly growing market, the
business unit could move along the experience curve and develop a cost advantage. From this
reasoning, the BCG Growth-Share Matrix was born.
19
Porters Five Model
Porter's five models is a framework for the industry analysis and business strategy
development developed by Michael E. Porter of Harvard Business School in 1979. It uses
concepts developed in Industrial Organization (IO) economics to derive five forces which
determine the competitive intensity and therefore attractiveness of a market. Attractiveness in
this context refers to the overall industry profitability. An "unattractive" industry is one where
the combination of forces acts to drive down overall profitability. A very unattractive industry
would be one approaching "pure competition".
20
The Sales Statistic
Sales Area
In the above map, the highlighted part shows the area in which I had worked and did all
my selling. I had been assigned the western part of Ahmedabad. Apart from the above areas I
had been to Himmat Nagar and Vijapur which not comes under Ahmedabad region.
21
Product-wise Sales
2 March, 2010 to 12 May, 2010
Area Product
Mango Sip Jeera Unibic Apple Sip Gallon
Navrangpura/C.G. Rd 22.75 8.13 24.10 7.10 7.00
Ashram Rd 64.10 23.00 1.88 1.33 7.00
Paldi/Vasna 29.88 33.38 14.52 1.11 5.00
Ambawadi 46.21 38.88 24.40 2.00 23.00
Sabarmati/Wadaj 105.22 33.63 11.88 3.89 12.00
Total Boxes 268.15 137.00 76.77 15.44 54.00
Area Avg 53.63 27.40 15.35 3.09 10.80
Daily Avg 5.36 2.74 1.54 0.31 1.08
The above figures show the total sales I had done in my area during the interim ship
duration. It also shows the shows the average sales in a particular area and the daily average
sales.
The pie chart shows the product-wise sales in the areas in percentage which shows mango
sip has major sales (48%) in all the areas.
Mango Sip
48%
Jeera
25%
Unibic
14%
Apple Sip
3% Gallon
10%
Mango Sip
Jeera
Unibic
Apple Sip
Gallon
22
Area-Wise Sales
• Navrangpura/ C.G. Road
The above graph shows the increment in the sales of apple sip, mango sip and Unibic
cookies in this particular area. The sale of jeera masala soda lowered because it was less favored
as compare to the xotix soda.
• Ashram Road
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Mango Sip Jeera Unibic Apple Sip Gallon
No. of
Boxes
Products
Navrangpura/ C.G.Rd Sales
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
Mango Sip Jeera Unibic Apple Sip Gallon
No. of
Boxes
Products
Ashram Rd Sales
23
The sale of mango sip in this area is very good as there are many organization and
colleges. So, there are many customers who are mostly employees or students which
prefer the range of Rs 10. products
• Paldi/ Vasna
According to the graph, the customers of this area have started accepting the new
jeera masala product as well as there is a increment in the sales of mango sip. The sale of
Unibic cookies in this area is good because of institutional sales like NID canteen
(National Institute of Design).
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
Mango Sip Jeera Unibic Apple Sip Gallon
No. of
Boxes
Products
Paldi/ Vasna Sales
24
• Ambawadi
• Sabarmati / Vadaj
In this area, the sale of mango sip is very high as compared to other products
because of the price of the product and the good margin given to the retailers. The
spending capacity of the customer of this area is normal.
0.00
10.00
20.00
30.00
40.00
50.00
Mango Sip Jeera Unibic Apple Sip Gallon
No. of
Boxes
Products
Ambawadi Sales
0.00
20.00
40.00
60.00
80.00
100.00
120.00
Mango Sip Jeera Unibic Apple Sip Gallon
No. of
Boxes
Products
Sabarmati/ Vadaj Sales
25
Comparison of Sales
In this section, the graphs will show the rise or fall in the sales of a particular product
with the help of graphs and reason for the same. I have taken the sales figure from 1st January,
2010 to 12th May, 2010. Out of which the sales figure from 1st January to 1st March are sales
before I joined the company.
• Mango Sip
In the above graph, the blue line shows the sales of mango sip before I joined the
company and red line shows the sales after I joined. The reason for the decline in sales in
particular regions is due to the poor distribution system. The distributor of this area
shows less interest in the product and keeps on giving excuses. Due to this, the company
is losing its customers and sale of the product is falling but still there is an increment in
the sales of mango sip because of two reasons. First I took the initiative in delivering the
goods and secondly due to season.
0
20
40
60
80
100
120
Boxes
Sold
Areas
Mango Sip Sales
26
• Jeera Masala Soda
The sales of jeera has drastically gone down in the area of Navrangpura/ C.G.
road and Ashram Road once the company changed the brand of the jeera they were using
before. The company changed the brand because the maximum retail price has been
increased to Rs 15 from Rs 13, due to which demand of the product has decreased. And
the new product of jeera has chosen is not good in taste and the packaging is also not very
attractive as per the feedback from the retailers. But I have increased the sales of jeera in
some areas due to my abilities and skills.
0
10
20
30
40
50
60
Navrangpura/C.G.
Rd
Ashram Rd Paldi/Vasna Ambawadi Sabarmati/Wadaj
Boxes
Sold
Areas
Jeera Sales
27
• Unibic Cookies
The sale of the unibic cookies has decreased in some areas as the company has
stopped the scheme due to which the margin of the retailer has reduced and as the product
is costlier, it started got rejections from the existing customers which directly affected the
sale of the product in the market. The reason for an increase in sales is because of good
outlets, which don’t consider the margin much and want to fulfill the demand of the
customer. The outlets like hind super market and NID canteen keep the good quantity of
our product.
0
5
10
15
20
25
30
35
Navrangpura/C.G.
Rd
Ashram Rd Paldi/Vasna Ambawadi Sabarmati/Wadaj
Boxes
Sold
Areas
Unibic Sales
28
BCG Matrix Analysis
The BCG matrix (Boston Consulting Group analysis) is a chart that had been created by
Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing
their business units or product lines. This helps the company allocate resources and is used as an
analytical tool in brand marketing, product management, strategic management, and portfolio
analysis. The expected market growth rate for the year 2009-10 of non-carbonated soft drink
industry in India is around 20-25% and the relative market share of Mango Sip is less than 2%.
Hence the company falls under the dog category of this matrix. Since the product has been
launched just 4 months back the company has to wait for some time to take any further decisions
regarding this product as it requires about 3-5 years for a product to become a brand.
The expected market growth rate for the year 2009-10 of cookies industry in India
according to Biscuit Manufacturer’s Association of India is 7% and the relative market share of
Mango Sip is less than 2%. Hence the company falls under the dog category of this matrix.
29
Product Life Cycle Analysis
Mango sip is at Introduction stage. The product is re-launched in the Ahmedabad market
and so it is not well known. It has been placed in the market to make it available. Demand has to
be created for this product.
30
While Unibic cookies are at Decline stage. The sales are decreasing and the competition
is more. To sustain in the market some promotional activities should be carried and also new
schemes should be provided.
34.536.5 36.56
18.99
0
5
10
15
20
25
30
35
40
0 1 2 3 4 5
Quantity
Month
Unibic Life Cycle
January Febuary March April
31
Porters Five Model Analysis
Barrier to entry:
Mody Beverages is an FMCG Company. In this barrier to entry is high as the competition
is high. The company has to spend a lot on advertising. Already other companies have the brand
name and loyalty and so it is difficult for a new company to enter.
Industry competition:
The competition is very high in this field. Many new companies come up with new
products in this field
Suppliers:
Supplier power is low here as the raw materials needed can be supplied from other
companies.
Buyers:
Buyer’s power is high.
32
Substitutes:
There are many substitutes in beverages. Different drinks and juices are coming up. In
mango flavor also there are many products.
33
Survey
A survey was conducted for mango sip and Unibic cookies. The products were evaluated
based on certain parameters and were compared with other products. This helped us in analyzing
that where our products stood in the market, the features that the products excelled and lacked in.
The survey helped in rating our product statistically and could provide assistance in making
improvements to boost their sales in the future. The parameters on which I have conducted the
survey are as follows:
• Product Range
• Quality of Product
• Availability of Product on Demand
• Unavailability in Last Month
• Lead Time After Order is Placed [No. of Days]
• Salesman Visit to Shop in a Week
• Salesman Score [ Out of 10]
• Overall Score [ Out of 10]
34
Mango Sip
• Product Range
The above bar graph shows the number of SKU (stock keeping unit) that has been placed
in the market. It also shows we are giving good competition to the Parley-Agro which shows the
product has a potential to compete in the market.
• Quality of Product
0
20
40
60
80
100
120
MODY BEVERAGES PEPSI COKE PARLEY-AGRO
Score
Product Range
0
20
40
60
80
100
120
MODY BEVERAGES PEPSI COKE PARLE-AGRO
Score
Quality
35
The above graph shows that our product is not less in terms of quality in comparison of
other competitive products in terms of mango based drinks.
• Salesman Score
It shows the service provided by the mody’s salesman is far better than other competitors
salesman.
• Overall Score
0
20
40
60
80
100
120
MODY BEVERAGES PEPSI COKE PARLE-AGRO
Score
Salesman Score
0
20
40
60
80
100
120
MODY
BEVERAGES
PEPSI COKE PARLE-AGRO
Score
Overall Score
36
The overall score of Mody is low due to lack of service provided by the distributor. So,
company should look into this problem. As product has the potential to compete but if it lagged
behind due to distribution channel then it is not good for the fame of the company.
• Unavailability of Product
In survey we came to know that the product was not available to the
retailers 7 times. It shows that there is a regular visit of salesman to the retailers
but there is no proper delivery of goods by the distributor.
• Lead Time after Order is placed.
The lead time means the time in which the order will be delivered to the
retailers. In survey I found that the lead time of our competitors is 2 days and our
lead time is 7 days.
Unibic Cookies
• Product Range
0
10
20
30
40
50
60
70
BRITANNIA PARLEY ITC MODY
BEVERAGES
Score
Product Range
37
The survey shows that the product range of Britannia is much higher as compare to other
market competitors. The placing of Unibic cookies is also very good in the market by some good
retailers.
• Quality
In terms of quality, our product has good response in the market and there is good scope
for this product to do well in the market.
• Salesman Score
The response I have got regarding the salesman score is very good, in comparison
with other salesmen.
0
10
20
30
40
50
60
70
80
BRITANNIA PARLE ITC MODY BEVERAGES
Score
Quality
0
10
20
30
40
50
60
70
80
BRITANNIA PARLEY ITC MODY BEVERAGES
Score
Salesman Score
38
• Overall Score
The overall score of our product is almost same as that of market leader in cookies
segment. But some respondent has complained about the delivery of goods as being late.
• Unavailability of Product
The number of times the product was unavailable to the retailers is 6
times. It shows that distributor is insincere and lacks dedication towards his job.
• Lead time after order is placed
The lead time of our distributor is 7 days average where as our
competitors has a lead time of 2 days at the maximum.
0
10
20
30
40
50
60
70
80
BRITANNIA PARLE ITC Mody Beverages
Score
Overall Score
39
Findings and Recommendations
• Inefficient distribution and supply system
It has been observed that the current distributors are not in a position to cover the
entire market properly and fail to distribute the product efficiently and there are loopholes in
the service provided by them. (E.g. orders are not delivered on time; order dispatched differs
from the order placed)
Solution
We need to have some more and good distributors who can handle the things properly
and we are in the process of finding out the new distributors.
• Packaging
The packaging of our product needs to be improved.
Solution
The packaging of current jeera masala soda is not at all attractive to the customers. The
color of the packaging is same as of the color of liquid inside it and the color in which the
name of the product is written is not well seen. So, to overcome this problem company
should ask the manufacturer to change the packaging such that it can be seen properly and
which reflects the product.
• Product Range
The whole product range is not available in Ahmedabad. Only Mango Sip and Apple
Sip are available.
Solution
The entire range should be made available including others products the manufacturer
makes like Guava Sip, Orange Sip and Pineapple Sip.
40
Learning
• Understanding the launching process of an FMCG Product
• Understanding the sales procedure
• Understanding Market Potential of Mango Sip and other existing product.
• Understanding the Supply Chain
• Understanding Business Model of an Organization
• Understanding the Organizational Functional area of sales and marketing.
• Understanding competitor’s behavior
• Understanding Retailers’ attitude and expectations
• Team Work
41
References
• Mr. Sanjay Datta – Regional Sales Manager
• Mr. Madhusudan Pathak- Area Sales Manager
• Mr. Saurin Seth
• Mr. Dilip- Distributor
• www.manpasandagrofood.com
• www.unibic.com