“The study on Brand availability of Parle-Agro
In Colleges and IT Companies in Hyderabad”
Submitted by:
Saroj Kumar Jena
PGDM 2011-13
Regd. No.-7013
Under the supervision and Guidance of
(Faculty guide) (Director Academics)
Prof. Bharat Bhusan Singh Prof. Mir Irfan Ul Haque
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DECLARATION
I Saroj Kumar Jena, here by declare that the project titled “The study on Brand
availability of Parle-Agro in various Colleges and IT Company in Hyderabad” is an
original work carried out under the guidance of Prof, Bharat Bhusan Singh.The report
submitted is a bonafide work of my own efforts and has not been submitted
to any institute or published before.
Date: Signature Of the student
Place: Hyderabad SAROJ KUMAR JENA
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Faculty Guide Certificate
I Prof. Bharat Bhusan Singh certify Mr/Mrs. Saroj Kumar Jena that the work done and the training undertaken by him/her is genuine to the best of my knowledge and acceptable.
Signature
Date
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ACKNOWLEDGEMENT
I would like to express my appreciation and thanks to all those with whom i have had
the opportunity to work and whose inputs & insights have helped me in furthering my
knowledge and understanding of my subject.
I would like to take this opportunity to thank Prof. Mir Irfan Ul Haque, director
academic, vishwavishwani institute of systems & management, Hyderabad and “Parle-
Agro “for giving me the opportunity to do my project in such a big organization.
My heartfelt thanks go out to my project supervisor, Prof.Bharat Bhusan Singh,
vishwa vishwani institute of system and management, Hyderabad, who was
instrumental in designing the project deserve more than just a few lines in
acknowledgement and I am deeply indebted to him with regard to the successful
completion of the project. Without her guidance and encouragement it would not have
been possible for me to complete my project successfully.
I would like to thank the principal director and director operation and faculty members of
my institute for providing me opportunity to work in a professional environment.
I also extend my gratitude to “Parle-Agro “for giving this project an identity and to me
an opportunity to represent the premier institute in professional world. For this i would
like to thank my project guide Mr. T Venkat (BDM) and some other person of this
organization. Without support of all other employees my project would not be
completed, so I am also equally thankful to all employees of Parle-Agro.
At last I express my sincere gratitude to almighty for his considerate and profound care
and support for making me capable for undertaking my maiden project of life and
completing it successfully.
SAROJ KUMAR JENA
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TABLE OF CONTEENTS
CHAPTER CONTENT PAGE NO.
I
Introduction 5-9
2
2.1 Industry profile
2.2 Company profile
2.3 Review of literature
10-55
33.1 Research methodology
3.2 Theoretical concepts 56-59
4
4.1 Data collection
4.2 Analysis &
4.3 Interpretation
50-71
5
5.1 Findings
5.2 Recommendations
5.3 Conclusions
72-74
Bibliography
Annexure,
Questionnaire
75-78
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CHAPTER - 1
INTRODUCTION
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INTRODUCTION
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, beverages, tooth cleaning products,
shaving products and detergents, as well as other non-durables such as glassware,
bulbs, batteries, paper products, and plastic goods.
Types of trade deal by (FMCG) company.
GENERAL TRADE.
MORDEN TRADE.
INSTITUTIONAL SALES.
HORECA.
According to this project the study covers on institutional trade.
Institutional Sales
The institutional market consists of Schools, Colleges, Hospitals, Nursing homes, IT
companies, Air lines, Railways and other institutions that provide goods and services to
people in their care .Institutions differ from one another in their sponsors and their
objectives. These markets are also giving opportunity to sell huge amount of product to
few customer. Thus its reducing labor as well as delivering cost .Each institution has
different buying needs and resources. According to my work point of view the company
given to me institutional selling at various College and IT Company in Hyderabad.
According to the above statement each institution has different buying needs. For
example, College Student have little choice but to eat whatever food the College
supplies. A College purchasing has to be deciding on the quality of food to buy for
student. Because the food is provide a part of total service package .If student receiving
poor quality of food will complain to other and damage college reputation. Thus the
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college purchasing department must search for institutional food vendor whose quality
meets or exceeds a certain minimum standard.
Brand visibility.
Brand availability and sku availability.
New account opening.
The companies will always tries to enfold certain visionary thoughts of a product or
services. Though it is very difficult to envisage the practical measures of the company
and gradually dismantling the process of improvement in its field.
The product visibility plays a greater role to increase the sales of the company. The
visibility will always allocate the manifestation of the products and increase the
percentage of share through its point of sales materials such as wobblers, posters,
stickers and also arranging the products in a right way.
There are different eye levels of people starting from children to old age people and
thereby making arranging the products in right manner. So as to attract the customers
through it’s arranging the products.
In an organization, the company will always tend to
follow the visual marketing. So as to attracts the customers and make as marketers to
think beyond their limits and captivated the systematic approach of the business.
The Parle Agro will always grab the majority of share in the market. As this Parle Agro
is a brand and thus will tend to improve its market share in day to day basis and thus
the Brand visibility is must to improve the sales.
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Brand avaliablity and SKU avaliblity:
Brand availability also plays a vital role for increase the sales performance of the
company . Brand availability helps the company like
If the brand is available on the store its create a positive impact to the company
It cant give the chance to customer for switching the brand
A stock-keeping unit (SKU) is a unique number which is used to identify a billable item
in a company's inventory. Using SKU numbers, companies can keep track of the
quantities they have in inventory, and they can manage inventory effectively with the
use of computerized systems, rather than having to keep track of everything by hand.
SKUs are usually unique to the companies where they are used, which means that an
identical product can have different SKUs if it is handled and sold by different
companies are make different types of sku for a product . Because to meet the
customer want at different time. The different different store are also willing to keep
different sku of that product . If all the sku is available in the store then definitely he can
meet the customer want of different sku. That’s why now a days every company give
special type of focus on sku for how to avail in all store.
New account opening:
Here new account opening means add new institution to our company. Every company
always try to opening new account . Because its helps in achieving high market share
and increase the company image. According this project I was able to crate 80 new
accounts to the company.
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OBJECTIVE OF THE STUDY
To find out how many IT Company and College are available in the city.
To know the brand availability in the colleges and IT Companies.
To know the sales proportion of Parle products vis a vis competitors products
To know the customers brand preference.
SCOPE OF THE STUDY
The study only covers the colleges and IT Companies canteens in Hyderabad
The study is done to find out the brand avaialbility of the Parle products
The study covers the customer’s preference of only those customers who are using
the canteen services of IT Companies and colleges canteen.
LIMITATION OF THE STUDY
The scope of study is limited to the respondents are selected from in and around
Hyderabad and secundarabad region.
The project is carried out for the period of 60 days only.
The sample unit was also 150 respondents.
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CHAPTER-2
LITERATURE REVIEW
INDUSTRYPROFILE
COMPANY PROFILE
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LITERATUREREVIEW
What Is an Institution?
What do you think of when you think of an institution?
1. A mental hospital
2. Correctional facility
3. Dormitory
4. Cafeteria food
5. An elephant in the room?
Institutions today are a lot more exciting than they were decades ago! If you take a
close look, you will see just how dramatic the transformation has been.
Healthcare is evolving continuously. Hospitals are no longer cinder blocks, tile floors
and pale green paint-they are now on the leading edge in architectural design and the
services they provide. Many medical clinics have high-tech systems that enable the staff
to share and/or access your medical records from anywhere in the country.
Churches that were previously stern and imposing structures have morphed into
neighborhood gathering places where people can enjoy Starbucks or Subway while
they visit with fellow parishioners. Organ recitals have been replaced with rock music,
steeples can house cell phone towers, and the dividing line between sacred and secular
is often blurred College students can choose to take classes on-site or online. They
have bookstores filled with logo apparel, school supplies, electronic equipment, and
gourmet coffee and food offerings. College students 40 years ago had bookstores filled
with -- books. Dormitories were sparse and primitive compared to residence halls today
that provide refrigerators, microwaves, lounges, and private baths.
If you think of an "elephant in the room" when you think of the institutional market,
you're not alone. In many ways, the institutional market is the elephant in the B2B
room. Marketers have known for decades that certain service and administration SIC
codes produce good results but we are just now learning how big and desirable B2i has
become and, more importantly, how to talk about it.
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From a B2B marketer's view, institutions are scattered around the SIC spectrum which
makes it difficult to see them as a whole segment. While SIC codes haven't changed
much since they were created in the 1930s, institutions have grown dramatically. When
SICs were established, institutions were tiny slivers within the B2B pie. Today, they
have grown to the point that they represent mammoth opportunities and deserve your
attention.
Once you understand the B2i market, you will probably experience information
overload. The elephant becomes visible. You'll see it in news articles, business reports,
CEO interviews, and special interest TV and newspaper segments that are devoted to
the significant aspects of the institutional market. The reports, however, rarely identify
B2i as a whole or call it by name.
Institutions And Businesses Are Different
Institutions don't buy like businesses, don't act like businesses, and can't be segmented
like businesses. You cannot expect to use the same strategies to reach influencers in
the institutional market as you have used to reach decision makers in the B2B world.
When you get under the surface, you will see the differences and how they should
impact your pitch and marketing plans.
The chart below provides a very basic view of the differences between businesses and
institutions:
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There are three major groups of institutions. While some institutions are clearly
members of only one of the major groups, other types of institutions can belong to
multiple groups making it even more important to examine the differences
1. Government offices and government-funded entities include parks and
recreation departments, police and fire departments, and public schools.
2. Private, not-for-profit organizations that are purpose driven include hospitals,
nursing homes, churches, and private schools, Govt School, among others.
3. For-profit organizations that are purpose driven include doctors, dentists, and
the 16% of U.S. hospitals that are for-profit.
When you pay attention to the fundamental differences between businesses and
institutions, you can modify your marketing plans and optimize your success in the B2i
space.
The Institutional Market Is Big And Growing
If institutions could be placed in a single SIC category, you would see that in 2005
spending in the B2i segment was $4.1 trillion-approximately one-third of GDP. Given the
incredible size of the segment, you're probably wondering why you haven't read or
heard about it. The fact of the matter is that the purpose-driven economy is invisible or
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obscured in government data; non-profit organizations don't pay taxes and many of
them aren't required to file forms with the IRS.
Look at the following examples of institutional growth and think about the bottom-line
benefit of focusing on the institutional market.
Healthcare has grown from 5% of GDP in the 1950s to 16% today.
The title of the September 25, 2006 BusinessWeek cover story drives home the
point that the healthcare segment is exploding: "What's Really Propping up the
Economy-Health care has added 1.7 million jobs since 2001. The rest of the
private sector? None."
City and County Government budgets can be equivalent to Fortune 1000
companies.
Johnson & Johnson (#32) and the City of New York each control $50 billion
budgets. Master Card (#626) and Cook County, IL are each responsible for $2.9
billion annually.
Total education funding has increased substantially in recent years at all
levels of government, even when accounting for enrollment increases and
inflation.
By the end of the 2004-05 school year, national K-12 education spending had
increased an estimated 105% since 1991-92. On a per-pupil basis and adjusted
for inflation, public school funding increased 24% from 1991-92 through 2001-02.
The total revenue of religious organizations in 1996 was $81.2 billion.
While it's difficult to find solid revenue data regarding religious organizations,
growth of mega-churches and faith-based initiatives over the past decade has
certainly contributed to making religion a multibillion-dollar market.
When you consider the fact that institutions have grown twice as fast as businesses
over the past 50 years, the B2i segment becomes very attractive. The pay-offs to
investing more of your attention to capturing B2i customers are increased profit and
improved lifetime value.
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Institutions Are Bigger Than Businesses
It can be difficult for marketers to grasp the size advantage that institutions have over
businesses. One reason is that most B2B marketers view their customers through the
lens of SIC (Standard Industrial Classification) codes, which are used to segment B2B
marketing databases.
The SIC system was developed by the federal government in the 1930s to organize and
report on economic data. While the SIC system was modified slightly over time (and has
since been replaced by NAICS codes for government use), it is still strongly skewed
toward describing the business environment as it existed 70 years ago. The bulk of the
SIC codes describe manufacturing activities, while the institutional sector is given short
shrift because it wasn't prominent in the 1930s.
As an example, there are four separate codes to differentiate the producers of electronic
capacitors, electronic resistors, electronic coils, and electronic connectors. Meanwhile,
every specialty outpatient facility-alcohol treatment, family planning, mental health,
physical rehabilitation, and more-is shoved into a single SIC category.
To really view the scope of the B2i economy, it's necessary to reconfigure the
institutional SIC codes, which we have done in the table below. In this arrangement, you
can compare the size and economic power of purpose-driven institutions compared to
traditional profit-driven businesses.
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When arranged properly, the numbers clearly show that the distribution of SIC codes
has not kept pace with the rapid growth of the B2i market. Note that institutions employ
28.3% of the workforce, but have only been allotted 7.4% of the total number of SIC
codes!
Those relatively few SIC categories, however, add up to a very large marketplace. The
B2i sector includes 2.2 million locations that employ 37 million people. The true size
advantage of institutions is shown in the number of employees per location. The
average institution has 16.7 employees, nearly double the amount of the average
business (8.5). Organizations with more employees have greater purchasing needs to
support the activities of their staff, so the typical institution customer is twice as
desirable as its business counterpart. Institutions are indeed good, large potential
customers, and there are lots of them.
Many people are surprised that institutions such as hospitals, schools, and government
offices are now the biggest employers in most cities and towns across the U.S. The
continuing shift in the U.S. economy, which is often reported as a shift to "service-
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based" or "information-based" businesses, could arguably be better stated as a shift
toward an "institution-based" economy.
For example, manufacturing jobs in Chicago dropped 26.3% from 1995 to 2005 while
employment in the advanced services sector grew rapidly. Crain's Chicago
Business ranked the largest employers in the city for 2005. Six of the top ten employers
are institutions and even more interesting is the fact that those six institutions employed
73% of the total employees in the top-ten list.
What are the implications of the institutional size advantage? Take an
institutional SIC like 8062, general medical and surgical hospitals. According to D&B
there are 13,468 locations with an average of 297 employees per location. This
compares to just 10 employees on average for all organizations in the B2B database.
When reviewing your customer file through the SIC lens, you might see that 8062 is a
strong performer. But is it 30 times stronger? If not, one conclusion might be that 8062
is under-marketed in your current strategy.
You should review your customer file to make sure you're capitalizing on the largest
organizations with the largest budgets. If institutional customers aren't buying more than
your business customers, you may need to shift your focus toward the B2i employers.
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Institutions Are More Stable Than Businesses:
One of the key reasons stability is important is that acquisition costs are lower when you
don't have a customer file prone to constant churn. It is much more economical to mail
to the same customer year after year than it is to try and find new customers to replace
customers who have ceased doing business. An interesting way to examine the
stability/volatility contrast between businesses and institutions is to think about the
number of Fortune 500 businesses over the past 50 years that are no longer in
existence today.
Businesses:
Bethlehem Steel was #12 on the Fortune 500 list in 1955 but no longer exists
today.
Enron first appeared on the Fortune 500 list in 1995 with revenues of $8.9 billion
and filed for bankruptcy just 6 years later.
Institutions:
Harvard University was established in 1636 and now has a $29 billion
endowment.
New York Hospital was founded in 1771 and now has a multibillion-dollar budget.
According to the Bureau of Labor Statistics, mass layoffs impacted 3.6 million workers
from 1999 through 2001. The industry breakdown shows that 80% of the layoffs
occurred in the business sector:
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Institutions Are Recession Resistant
Institutions are funded through taxes and other revenue sources that are not impacted
by dramatic short-term fluctuations in the economy. If your customer file contains a high
number of institutions, your revenue gains and losses will be similarly stable. If your
customer file contains a high number of businesses, the peaks and valleys will be much
steeper. Think about the dotcom era and how businesses spent exorbitant sums of
money to acquire talent, decorate offices, and pay bonuses. When the bubble burst, the
economic valley was the equivalent of the Grand Canyon. A good way to contrast
businesses and institutions during that time period is to think of the tortoise and the
hare-institutions grew, but at a steady and almost predictable rate, and in the long run,
won the race.
The institutional market is a good sector during both strong and soft economic cycles.
People need the services provided by government offices, hospitals, and schools
regardless of the economic climate. Even if institutions have to cut programs and
services during a soft economic period, they still need to function on a daily basis, i.e.,
they still need office supplies, computer equipment, janitorial supplies, and they still
need to provide basic services like police and fire protection to the public.
Institutions Are Creditworthy
When was the last time you turned an institution over to a collection agency?
Creditworthiness is not an issue when dealing with most institutions because:
Institutions cannot spend money unless it is appropriated. In other words, they
can't spend money they don't have.
Purchase orders cannot be released unless there are funds in the bank.
Businesses can often be a credit risk because revenue disbursements are made at the
discretion of the business owner or manager. In the institutional space, the money can't
be spent if it hasn't been appropriated. The minute a purchase order is issued, the funds
are encumbered so they can't be used for a different purpose. Although many marketers
say the purchase order process is time-consuming and laden with details, the benefit of
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knowing you will be paid for a product or service is well worth the effort. In addition, the
financial stability and lower acquisition costs make B2i customers a very attractive
segment.
When Should You Mail To Institutions?
Timing is a critical element in B2i campaigns. In fact, it is so important that choosing
when to mail will directly impact how successful you will be.
Most of us would enjoy having the resources to conduct year-round campaigns. While
it's true that some level of discretionary purchasing occurs on a year-round basis in
institutions, there are also extremely time-sensitive opportunities. For example, in non-
profit and government-funded organizations, fiscal year-end dates and budgets have a
significant impact on purchasing decisions.
For most non-profit organizations, the months near the end of one fiscal year and
beginning of the next are the critical budgeting and purchasing period. Your product and
service offerings need to be in the hands of purchasing influencers at the time they are
discussing budgets for the upcoming year. Likewise, capitalizing on "clean-up" spending
prior to the end of a fiscal year is equally beneficial. Clean-up spending means using left
over budgeted funds before the end of a fiscal year to avoid losing them.
A key contrast between institutions and businesses is the difference between public and
private accounting standards:
In businesses (private institutions), managers are incentivized to reduce costs to
maximize profits.
In public institutions, managers are incentivized to spend their entire budgets.
If a department doesn't spend all of the money allocated to it by the end of the fiscal
year, the money is returned to the general budget and the department's budget for the
next year may be reduced. Selecting drop dates that correspond with your customers'
discretionary and clean-up spending timeframes will help you maximize profitability and
increase response rates.
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Finding The Decision Maker In Institutions
Identifying the decision maker at an institution can be a difficult task because in many
institutional settings, the decision maker collaborates with others prior to making the
commitment to buy. A sole decision maker is more likely to exist in the business arena
and it's much easier to identify that person and/or their title. This is one area where you
need to think about your audience and be especially careful about business title
addressing. Sometimes job titles don't accurately describe the job function. For
example, the Materials Manager at a hospital who has more influence than the
Purchasing Director. The Materials Manager is responsible for deciding what to buy
while the Purchasing Director is responsible for monitoring the actual transaction, i.e.
purchasing process. Likewise, an Acquisition Librarian doesn't actually "acquire"
anything-that person is responsible for making sure the orders are processed correctly.
In the institution market, you need to know whom you are targeting. If you approach the
institution file with the strategies you use in reaching traditional B2B decision makers,
you may miss some terrific candidates.
Businesses and institutions also have significantly different operating infrastructures and
the organizational chart can be an important tool in helping you understand reporting
structures and identifying key decision makers. It's interesting to note that even the
training for leadership positions is different between businesses and institutions. The
vast majority of college graduates who are interested in a "business" career will pursue
a Masters of Business Administration degree. Students interested in an institutional
leadership position will enroll in programs such as Master of Public Administration,
Master of Theology, Master of Education, or Medical Doctor.
Businesses have CEOs, Presidents, and COOs while institutions' leaders may be called
Mayor, Governor, Superintendent, Principal, Director, Manager, City Administrator, or
Pastor. The ability to select the appropriate decision maker by job title can have a huge
impact on response rates and the success of a mailing campaign. In some cases,
mailing to multiple job titles may help your message reach the right person at the right
time in the budgeting and allocation cycle.
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Conclusion
Think about the traits you would like your ideal customer to have:
larger than average
unlikely to go out of business
always pays its bills
buys more each year
not subject to big economic swings.
When you combine these traits, you have essentially defined an institution.
While B2i is certainly the elephant in the B2B room, this stealth growth market now
spends $4.1 trillion annually making it a very, very lucrative market. The purpose-driven
economy of institutions has evolved from small slivers of the SIC world into much larger
pieces of the pie. It is worth the time and effort to learn about both the subtle and
dramatic differences between businesses and institutions. By developing marketing
plans strategically focused on the institution market, you can improve your profits,
response rates, and the lifetime value of your customers.
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INDUSTRY PROFILE
Fast Moving Consumer Goods (FMCG) Industry:
FMCG are products that have a quick shelf turnover, at relatively low cost and
don't require a lot of thought, time and financial investment to purchase.
Fast Moving’ is in opposition to consumer durables such as kitchen appliances
that are generally replaced less than once a year.
Three of the largest and best known examples of Fast Moving Consumer Goods
companies are Nestlé, Unilever and Procter & Gamble.
The Indian FMCG sector is an important contributor to the country's GDP. It is
the fourth largest sector in the economy and is responsible for 5% of the total
factory employment in India .
This has been due to liberalization, urbanization, increase in the disposable
incomes and altered lifestyle.
The lower-middle income group accounts for over 60% of the sector's sales. Rural
markets account for 56% of the total domestic FMCG demand.
FMCG – Evolution:
1950’s-80 – Low Investment in the sector.
Low purchasing power.
Govt’s emphasis on small scale sector.
HLL and other company’s urbane focus.
Post liberalization.
Entry of MNCs.
Focus shifted to getting to rural consumer first Others, like Nestle, remained with
the urban population Latest fad to hit the market is the ‘sachet’ bug.
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Mushrooming of regional brands.
Nirma enters and changes the focus to ‘Value for Money’ in the 70’s.
Post liberalization, Jyothi Laboratories, ‘Ghari’ Detergent and ‘Anchor’ toothpaste
giving the nation-wide brands a run for their money.
FMCG SECTOR:
Fast Moving Consumer Goods (FMCG) goods are popularly named as
consumerpackaged goods. Items in this category include all consumables (other
thangroceries/pulses) people buy at regular intervals. The most common in the listare
toilet soaps, detergents, shampoos, toothpaste, shaving products, shoepolish, packaged
foodstuff, and household accessories and extends to certainelectronic goods. These
items are meant for daily of frequent consumption andhave high return. A major portion
of the monthly budget of each household is reserved for FMCGproducts. The volume of
money circulated in the economy against FMCGproducts is very high.
Industry category and products:
Household Care
Personal Wash:-
The market size of personal wash is estimated to be around Rs. 8,300 Cr. The personal
wash can be segregated into three segments: Premium, Economy and Popular. The
penetration level of soaps is ~92 per cent. It is available in 5 million retail stores, out of
which, 75 per cent are in the rural areas. HUL is the leader with market share of ~53 per
cent; Godrej occupies second position with market share of ~10 per cent. With increase
in disposable incomes, growth in rural demand is expected to increase because
consumers are moving up towards premium products. However, in the recent past there
has not been much change in the volume of premium soaps in proportion to economy
soaps, because increase in prices has led some consumers to look for cheaper
substitutes. Hindustan Unilever Lim-ited is the biggest pro-ducer of Personal wash and
detergents.The seg-ment is expected to grow by double digit.
Detergents:-
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The size of the detergent market is estimated to be Rs. 12,000 Cr. Household care
segment is characterized by high degree of competition and high level ofpenetration.
With rapid urbanization, emergence of small pack size and sachets, the demand for the
household care products is flourishing. The demand for detergents has been growing
but the regional and small unorganized players account for a major share of the total
volume of the detergent market. In washing powder HUL is the leader with ~38 per cent
of mar-ket share. Other major players are Nirma, Henkel and Proctor & Gamble.
Personal Care
Skin Care:-
The total skin care market is estimated to be around Rs. 3,400 Cr. The skin care market
is at a primary stage in India. The penetration level of this segment in India is around 20
per cent. With changing life styles, increase in disposable incomes, greater product
choice and availability, people are becoming aware about personal grooming. The
major players in this segment are Hindustan Unilever with a market share of ~54 per
cent, fol-lowed by CavinKare with a market share of ~12 per cent and Godrej with a
market share of ~3 per cent.
Hair Care:-
The hair care market in India is estimated at around Rs. 3,800 Cr. The hair care market
can be segmented into hair oils, shampoos, hair colorants & conditioners, and hair gels.
Marico is the leader in Hair Oil segment with market share of ~ 33 per cent; Dabur occu-
pies second position at ~17 per cent.
Shampoos:-
The Indian shampoo market is estimated to be around Rs. 2,700 Cr. It has the
penetration level of only 13 per cent in India. Sachet makes up to 40 per cent of the total
shampoo sale. It has low penetration level even in metros. Again the market is
dominated by HUL with around ~47 per cent market share; P&G occupies second
position with market share of around ~23 per cent. Antidandruff segment constitutes
around 15 per cent of the total shampoo market. The market is further expected to
26
increase due to increased marketing by players and availability of shampoos in
affordable sachets.
Oral Care:-
The oral care market can be segmented into toothpaste - 60 per cent; toothpowder - 23
per cent; toothbrushes - 17 per cent. The total toothpaste market is estimated to be
around Rs. 3,500 Cr. The penetration level of toothpowder/toothpaste in urban areas is
three times that of rural areas. This segment is dominated by Colgate-Palmolive with
market share of ~49 per cent, while HUL occupies second position with market share of
~30 per cent. In toothpowders market, Colgate and Dabur are the major players. The
oral care market, es-pecially toothpastes, remains under penetrated in India with
penetration level ~50 per cent.
Food & Beverages
Food Segment:-
The foods category in FMCG is gaining popularity with a swing of launches
by HUL, ITC, Godrej, and others. This category has 18 major brands aggregating Rs.
4,600 Cr. Nestle and Amul slug it out in the powders segment. The food category has
also seen innovations like softies in ice creams, ready to eat rice by HUL and pizzas by
both GCMMF and Godrej Pillsbury.
Tea:-
The major share of tea market is dominated by unorganized players. More than 50 per
cent of the market share is capture by unorganized players. Leading branded tea
players are HUL and Tata Tea.
Coffee :-
The Indian beverage industry faces over supply in segments like coffee and tea.
However, more than 50 per cent of the market share is in unpacked or loose form. The
major players in this segment are Nestlé, HUL and Tata Tea.
27
Top 10 fmcg companies in india in terms of revenue
FMCG sector is an ever growing sector and is currently in a boom phase. There are
many jobs in FMCG sector at different levels like sales, supply chain, manager,
operations, purchasing, supervisor, administration, general management, product
development, HR, Finance and marketing. FMCG sector is famous for jobs that are not
only well paying but also gives the best perks and bonuses. Fresher’s are looking for
jobs in FMCG sector as these jobs will give them the best career in the industry.
Top ten fmcg companies in india in terms of revenue:
SOURCE:http://www .naukrihub.com /india/fmcg/t op-companies/4
28
S. NO. Companies
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
KEY PLAYERS IN FMCG INDUSTRY:
Hindustan Unilever Limited:
Unilever is lowering its expenditure on packaging across its portfolio of food
brands as part of a wider cost-cutting drive. HUL has pared down the colour
palette used for print-ing across many products. The system has been used to
reduce printed packaging costs for Unileverʹs products. It is also eco-friendly
because it reduces waste in the printing process. HUL is taking different steps to
reduce the cost and increase
the margin.
Hindustan Unilever’s product - Pureit (a water purifier) has received the
UNESCO Water Digest Water Award 2008-2009 in the category of best domestic
non-electric water puri-fier. Pureit received the award for outstanding contribution
in the field of water in India. The product is available across 21 Indian states and
has reached more than 1 million homes in India giving them access to
microbiologically safe drinking water. Pureit’s performance has been tested by
leading international & national medical, scien-tific& public health institutions and
meets the germ-kill criteria of the Environmental Pro-tection Agency, the drinking
water regulatory agency in the USA.
29
Procter & Gamble Hygiene & Health Care Limited (P&G):
The Company has 21 product categories out of which only 8 producthave
presence in India. The company is planning to launch the rest 13product in India.
The company expects to see a growth in other categories.
The company has an aggressive plan to set up 20 new factories acrossthe World
out of which 19 is expected to come in emerging marketsand most of them would
be seen in Brazil, Russia, India, and China(BRIC) nations.
Whisper which is one of the company’s power brands has recorded 50per cent
market share in urban India.
Godrej Consumer Products Limited (Godrej):
The Board of Directors of Godrej Consumer Products Limited (GCPL)has approved
the acquisition of 50 per cent stake of its joint venturepartner SCA Hygiene Products’
stake in Godrej SCA Hygiene Limited.After the transaction, the Joint Venture which
30
owns the ‘Snuggy’ brandof baby diapers will become a 100 per cent subsidiary of
GCPL.
Godrej Consumer Products Limited has acquired 100 per cent stake inthe Kinky
Group Limited, South Africa. Kinky is among one of thelargest brand into hair
segment with product portfolio
Dabur India Limited (Dabur):
Dabur has entered into the malted food drink market with the launchof a new
health drink “DaburChyawan Junior”. According to thecompany, they expect to
capture a market share of 10 per cent of theRs. 1,900 Crores malted food drink
market over the next two years.
Dabur has acquired 72.15 per cent of Fem Care Pharma Ltd (FCPL), aleading
player in the women’s skin care products market, for Rs 203.7Crores in an all-
cash deal. The Company is expected to create synergyby this deal.
Dabur got approval from Government of Himachal Pradesh to set up another
medicine manufacturing unit. The project has an expectedinvestment of Rs. 130
Crores
31
Colgate-Palmolive (India) Limited:
Colgate Palmolive (India) Ltd, which is currently holding 75 per cent ofthe share capital
of SS Oral Hygiene Products Private Ltd, Hyderabad,has acquired the remaining 25 per
cent share capital from the localshareholders at an aggregate price of Rs 77.70 lakh.
Consequently, SSOral Hygiene Products has become a wholly owned subsidiary of
thecompany.
Nestle India Limited:
Nestle is planning to invest Rs 6 billion in India in 2009 for expansionof its
business in the country. The company which has allotted aninvestment of Rs 3
billion in the Indian market in 2008, would bedoubling the investment in 2009 as
part of its business strategy. NestleInternational is reinvesting and expanding in
India and Nestle Indiawill have all the financial resources to expand and grow
from theparent company.
Nestle India reported a good increase in its standalone net profit for thesecond quarter.
During the quarter, the profit of the company rose26.54% to Rs 1,210.90 million from Rs
956.90 million in the samequarter, last year. The company posted earnings of Rs 12.56
32
a shareduring the quarter, registering 26.61% growth over prior year period.Net sales
for the quarter rose 23.45% to Rs 10,356.30 million, while totalincome for the quarter
rose 23.78% to Rs 10,423.40 million, whencompared with the prior year period.
Amul
GCMMF stands for Gujarat Cooperative Milk Marketing Federation and the company
aims at offering good returns to the farmers and at fulfilling the requirements of
consumers by offering them quality products. Of the different products offered by
GCMMF, Amul range of products is the most famous and millions of people in India use
Amul products. Some of the products of Amul include Amulya, Amul Milk, Nutramul,
Amul Ice Cream, Amul Shirkhand, Amul Chocolates, Amul Cheese, Amul Spray, Amul
Ghee, Amul Milk powder and Amul Butter.
Asian Paints:
Asian paints came into existence in the year 1942 and they are dealing with industrial
and marine coatings, wood finishes, automobile OEMs and refinishes, finish coats and
ancillary product in decorative paints. They are manufacturers of FMCG goods namely
paints and their plants are located in different states like Tamil Nadu, Uttar Pradesh,
Andhra Pradesh, Gujarat and Maharastra.
33
Cadbury India:
Cadbury came into India in the year 1948 by importing consumer good namely
chocolates. They were dealing only with importing chocolates, but now they have
manufacturing units in different parts of India like Himachal Pradesh, Bangalore,
Gwalior, Pune and Mumbai and sales offices at Chennai, New Delhi, Kolkata and
Mumbai. Some of their popular products are Cadbury diary milk, celebrations, Eclairs,
perk and 5 star and they are also popular for their milk drink bournvita.
Britannia Industries:
Britannia industries are dealing with manufacturing of products like milk, butter, cheese,
cakes, rusk, bread and the popular Britannia biscuits. Some of their popular branded
biscuits are milk bikis, good day, pure magic, maska chaska, treat and marie gold. The
manufacturing units of the company are located at different parts of India like
Uttarakhand, Chennai, Delhi, Kolkata and Mumbai.
34
Marico Industries:
Marico Industries is a leading Indian company manufacturing and exporting consumer
products to different countries like SAARC Countries, Egypt, the Middle East,
Bangladesh, UAE and the USA. Some of their popular products are Parachute, Revive,
Shanti, Saffola, and Mediker.
FMCG is an ever-growing sector and this sector offers a wide range of employment
opportunities in different departments like marketing, finance, HR, product development,
general management, administration, supervision, purchase, operations, sales and
supply chain management. Thus, this sector improves the earning capacity of
individuals by offering wide range of employment opportunities
Swot analysis of fmcg industry:
Strengths:
• Low operational costs
• Presence of established distribution networks in both urban and ruralAreas.
• Presence of well-known brands in FMCG sector
Weaknesses:
• Lower scope of investing in technology and achieving economies ofscale, especially in
small sectors
• Low exports levels
• "Me-tooʺ products, which illegally mimic the labels of the establishedbrands. These
products narrow the scope of FMCG products in ruraland semi-urban market.
35
Opportunities:
• Untapped rural market
• Rising income levels, i.e. increase in purchasing power of consumers
• Large domestic market- a population of over one billion.
• Export potential
• High consumer goods spending.
Threats:
• Removal of import restrictions resulting in replacing of domestic brands
• Slowdown in rural demand
• Tax and regulatory structure
36
COMPANY PROFILE
'Parle Products Pvt Ltd based in Mumbai India has been India's largest manufacturer of
biscuite and Confectionery, for almost 80 years. Makers of the world's largest selling
biscuit, Parle-G, and a host of other very popular brands. Its reach spans even to the
remotest villages of India. Many of the Parle products - biscuits or confectioneries, are
market leaders in their category and have won acclaim at the Monde Selection, since
1971. With a 40% share of the total biscuit market and a 15% share of the total
confectionery market in India, Parle has grown to become a multi-million dollar
company.Parle Agro is a food and beverage company based in Mumbai, India.
Parle Agro - a trusted name in the beverage industry for agro based drinks. Parle
Agro is a leading Indian Beverage Company, the only Indian transnational giant with
the past experience of having successfully launched leading soft drink brands like
'Frooti, Appy Classic,Appy- Fizz, Bailley Packaged Drinking Water & Confectionery
brands like Mintrox and Buttercup'. Parle Agro strength is our people who have worked
towards making our presence felt throughout the country and all over the world through
a strong franchisee network and well-developed strong infrastructure. Parle Agro has its
factories located in Silvassa, Patalganga, Bhopal, Chennai, Ghaziabad and Hyderabad.
At Parle Agro, success is a habit; where greater heights are achieved through consumer
insight, sound business practices, marketing and sales innovation, with the focus on the
consumer. 'Thinking consumer, Tasting success, Always' - that is what Parle Agro is all
about.
37
NATURE OF ORGANIZATION:
"PARLE AGRO is a trusted name in the Indian beverage industry and has been
refreshing India since more than two decades with leading brands like Frooti, Apply
Classic, Apply Fizz, Bailley, Saint Juice, LMN & recently launched Grappo Fizz. Parle
Agro Pvt., Ltd. manufactures, distributes, sells, and exports fruit drinks in India and
internationally. The company offers fruit and milk drinks, packaged water, and apple and
mango drinks in polyethylene terepthalate (PET) bottles and containers, and tetra
packs. The company also operates a health and fitness studio for woman. The company
distributes its products through franchisees. Parle Agro Pvt., Ltd. was founded in 1985
and is based in Mumbai, India.
Parle Agro has been a trusted name in the beverage industry providing wholesome and
healthy agro-based drink brands. It has successfully launched some of India's leading
beverages like Frooti, Appy and N-Joi,
And packaged drinking water, Bailey, over the last two decades.In a country where
health consciousness is growing at a rapid pace, Parle Agro, with its numerous fruit-
based drinks, has struck a chord with the masses. It brings to the consumers the magic
of premium quality fresh fruit drinks conveniently packed and available all through the
year. Fruit beverages are wholesome, easy to digest, highly refreshing with natural
nutritional values as compared to synthetic and aerated drinks. Parle Agro's Frooti is
India's first national mango drink. The mango segment is 95% of the Indian fruit drink
market and Frooti has 85% market share in the tetra pack segment. Made from fresh
and premium Indian mangoes, Frooti has grown to be one of India's top 50 most trusted
brands. When Parle Agro launched N-Joi with real fruits and fresh milk, it not only
launched a new healthy Beverage, but also created a whole new category in India. The
milk shake claims to contain no preservatives and is full of nutritional goodness. It's a
delicious filler and an apt quick refreshing nourishment for today's hectic stressful life.
38
TERRITORY DESIGN
Business of Parle Agro Is divided into following forms:
1.) General retail
2.) Modern Trade
3.) Ho Re Ca
4.) Institutional
Parle Agro has divided its Channel partners into 3 categories:-
1.) General Trade
a.) Premium Distributor
b.) Normal Distributor
2.) Modern Retail
3.) HORECA & Institutional
39
The organizational hierarchy:
CEO
GENERAL MANAGER (ALL CHANNELS)
GENERAL MANAGER
(ALTERNATIVE CHANNELS)
SENIOR MANAGER
KEY ACCOUNT MANAGER
BDM (BUSINESS DEVELOPMENTMANAGER)
BDE (BUSINESS DEVELOPMENT EXECTIVE)
BDO (BUSINESS DEVELOPMENT OFFICER)
TRAINEES
40
Distribution network of Parle Agro:
41
FACTORY
C&F
DISTRIBUTER
RETAILEREND CUSTOMER
VISION:-
To be the leaders in our business. We will stand apart from the competition by being the
first in the market to innovate.
MISSION:-
“We will be the leaders in our business by – maintaining high quality, introducing new
and innovative products, reaching every part of India, remaining customer-centric,
constantly upgrading our knowledge and skills.”
“To provide consumers superior, wholesome agro based food and drink brands through
which parle can build a profitable; growth oriented organization”.
Parle is a leading Indian Food and Beverage Company, the only Indian transnational
gaint with the past exp[erience of having successfully launched leading soft drinks like
“Frooti, Appy, N-Joi and Bailley”. Toady its brand portfolio consists of No.1 brands like
froti along with Appy, N-Joi and Bailley.
PRODUCTS
1. FROOTI:
42
It is the flagship brand of Parle agro. It was introduced in 1985 and it was the first Fruit
Drink to be introduced in India. Mango - India’s national and most premium fruit was a
virtually untapped segment until the year 1985, which saw the launch of Frooti Mango in
a trendy convenient tetra-pack. Frooti Mango is Parle Agro flagship brand and India’s
leading fruit drink with a 75% market share. Now, Frooti also comes in PET bottle
packing. Frooti is like an Indian ambassador and is a hot favorite not only in India but all
across the world. Frooti is the first tetra pack fruit juice in India. Launched in 1984,
Frooti still holds a dominant position in the Rs300 crore tetra pack fruit juice (TFJ)
market. Frooti over these years have carved out a niche for itself in the market.
Changes in tag line over the years
Mango Frooti, Fresh n Juicy’ has remained the base tagline since the brand launch. In
between, the brand has used new taglines such as
‘Frooti - Just like that’
’Fresh and juicy! What a beauty! Mango Frooti!’
‘Juice up your Life’
Accepting that Frooti would perhaps always be identified as ‘Fresh and juicy’, Frooti
packs currently incorporate the decades-old tagline, with a minor change, saying,
“Fresh ‘N’ Juicy Mango”. Even the ad plays the jingle towards the end. But Frooti brand
communication is based around the theme of ‘Why grow up’.
Product line of Frooti
1. Frooti 65 ml TCA
2. Frooti Tetra Pack 200ml
3. Frooti Pet 200 ml
43
Product line of Frooti
Frooti 65 ml TCA
01
Frooti Tetra Pack 200
ml
02
Frooti Pet 200 ml
03
Frooti 500 ml
04
Frooti Pet 1000 ml
05
Frooti 1500 ml
06
44
2. BAILLEY
I t is a mineral water and was launched in the year 1993. I t is one of the f irst
brands to get an ISI cert i f icat ion. Bai l ley conforms to str ingent BIS Norms. I t
undergoes 51 quali ty control tests includes 32 chemical tests, 9 microbiological
tests and 10 physical tests and meets international standards laid down by
WHO, USFDA, PFA.
Parle Bail ley Aqua is unique because i t has the same consistent taste across
India. This is because of the unique purifying processing system, which
removes al l minerals and salts and puts back only exact premeasured quanti t ies
of salts and minerals necessary for the human body. Bai l ley Aqua is puri f ied
with chemical free natural U.V. Treatment.
45
3. APPY
Appy Classic was launched in 1986 as Apple nectar and originally available in a white
tetra pack with an apple and leaf graphic. As of 2011, it comes in black tetra packaging.
It was the first apple nectar to be launched in India.
Born in 1986, Appy - the still apple drink, is the most popular and first of its kind in the
country. Appy is made from fresh juicy apples. Its new sleek and classy packaging
makes it elegantly charming to one and all. Maybe you’ll bump into it at your next
banquet or while dining at your favorite restaurant. Meet the most sophisticated member
of our family. Appy is available in 200ml & 1 ltr. Tetra Pak and 250ml& 400ml PET.
46
4. Appy Fizz
Appy Fizz is a product by Parle Agro, introduced in India in 2005. Appy Fizz consists of
carbonated apple juice, and is used as the basis for cocktails and is a popular drink with
the youth.After the success of Appy which was clean apple juice, Parle launched its
sequel product as Grappo Fizz, which is a carbonated grape juice.
The drink was the subject of a successful campaign of advertising at cricket matches in
2007-08.
Appy Fizz is also manufactured and marketed in Bangladesh by Global Beverage Co
Ltd. under license from Parle Agro.
47
Appy Fizz 300ml Appy Fizz 500ml Appy Fizz 1000 ml
5. Grappo Fizz:
Launched in 2008, Grappo Fizz is a sparkling grape juice drink. Credited with creating
the sparkling fruit drinks category in India[citation needed], Grappo Fizz is along the
lines of existing product Appy Fizz.
48
Here’s Appy Fizz’ cousin - Grappo Fizz. He can rap, he can dance and can almost
always do both together. Grappo Fizz comes in the same sleek champagne-bottle
shaped bottle as Appy Fizz and sports a label that has his hip-hop attitude all over it.
Oh, and of course, you can’t miss his bling. Whether it’s his awesome attitude or sheer
‘grapeness’, Grappo Fizz will surely bring the house down! Grappo Fizz is available in
300ml, 500ml and 1 ltr. PET.
6. LMN
LMN was launched in March 2009, as non-carbonated lemon drink (nimbupaani or
lemonade) When you’re thirsty, catch up with LMN Lemon Aqua, the fresh lemon drink
packed with Vitamin C and tons of lemony goodness. Well, this drink is really one of a
kind. It can turn even a boring meeting or a traffic jam into a refreshingly refreshing
experience. Do invite it the next time you’re at home twiddling your thumbs, tired or just
thirsty, for a refreshing time. Meet our most accomplished thirst quencher! Just ask for
lemon. Available in 100ml and 200ml Tetra Pak and 250ml, 500ml and 1 ltr. PET.
7. SAINT JUICES:
49
Saint Apple Juice comes with the natural benefits of green apples. Compared to other varieties
of apples, Green Apples are richer in Vitamin C and are high on fiber content. They are an
excellent source of potassium and antioxidants. The concentrate for Saint Apple Juice is made
from carefully selected green apples from the best orchards in Austria and imported to India.
Saint Juice is being manufactured out of Parle Agro's Hyderabad plant, which has high capacity
lines for manufacturing of one liter Tetra Pak and economy of scale to support the new product.
Saint Apple Juice packs are pristine white and uncluttered, featuring stunning shots of real
green apples stacked unconventionally on top of each other. The unique and distinct packaging
lends an international feel to the product. Available in 1 liter and 200 ml SKU's, the packs are
priced at Rs 80 and Rs 15 respectively. Saint Apple will be available across India with a special
focus on metros, mini-metros and the top three cities of every state.
Confectionary
8. Mintrox mints
50
Mintrox mints (launched in 2008), hard mint candy available in 2 flavors
51
Buttercup candies (launched in 2008), hard boiled candy; it is targeted at kids and
adults alike.
MintroxLife eej hard. Introducing the little rock star.Well, Mintrox is a small yet a firm
member of our family. It’s a hard mint that loves to enjoy even the hardest moments in
life. It is available in three exciting flavours: Peppermint, Cinnamon Mint and Menthol
Mint. You can expect some solid performances from this guy. Mintrox is available in a
refill pouch of 100 pcs. and jars of 150 pcs., 300 pcs. and 900 pcs.
Frewt Éclair
Fruit inside. Fruit outside. Introducing the newest member
of our family. It’s rich and definitely one of its kind. Frewt Éclair is not your average
éclair. Its fruit cream in the inside, fruit caramel on the outside, and fruit all around. It
comes in four awesome flavors – mango, banana, strawberry and orange. Such a
simple idea that you may wonder why nobody thought of it before .Frewt Éclair is
available in a stand-up pouch of 100 assorted pcs. and a jar of 160 assorted pcs
.
9. Buttercup Softease
52
Buttercup Softease, a toffee available in 4 flavors .Buttercup soft ease Really precious
toffees. If you’ve passed through the metal detector, say ‘Hi’ to our Buttercup
Softease.This pricey Kidult is really precious to us. In fact, we make sure to keep it in
our treasure chest. And guess what, this wealthy newcomer is available in four rich and
creamy flavors - caramel, coconut, strawberry and vanilla. Well, actually in invaluable
tastes. Butter Cup Softease is available in a refill pouch of 100 assorted pcs. and a jar
of 240 assorted pcs.
10. Softease mithai
53
Softease Mithai, a toffee available in 3 flavors Softease Mithai Tradition with a twist.
When timeless traditions meet tasty toffee. Presenting the ultra-lovable Softease Mithai
- the newest member of our Confectionery family. This cultured treat is available in two
delicious flavours - Kaju and Kesar. Softease Mithai is available in a refill pouch of 100
pcs. and jar of 124 pcs.
Snacks
11. Hippo:
54
Hippo (launched in 2009), baked snack available in seven flavors .Hippo Delicious
Baked Munchies. You’d be delighted to meet this family member especially when you
are hungry. He cares. He cooks. He is Hippo. Hippo is very disappointed with
superheroes, intelligence agencies and world leaders.
He thinks none care about fighting the world’s biggest enemy, hunger. So, Hippo has
taken matters into his own hands and kitchen. To fight hunger, Hippo has made
delicious baked munchies in international flavors like Italian Pizza, Yoghurt Mint
Chutney, Chinese Manchurian, Hot-n-Sweet Tomato and Thai Chili Hippo is available in
Rs.5, Rs.10 and Rs.20 packs
Market Share:-
Frooti has 85% market share in the tetra pack segment. With a 40% share of the total
biscuit market and a 15% share of the total confectionery market in India.
Parle Agro has been a trusted name in the beverage industry providing wholesome and
healthy agro-based drink brands. It has successfully launched some of India's leading
beverages like Frooti, Appy and N-Joi, and packaged drinking water, Bailley, over the
last two decades. In a country where health consciousness is growing at a rapid pace,
Parle Agro, with its numerous fruit-based drinks, has struck a chord with the masses. It
brings to the consumers the magic of premium quality fresh fruit drinks conveniently
packed and available all through the year. Fruit beverages are wholesome, easy to
digest, highly refreshing with natural nutritional values as compared to synthetic and
aerated drinks. Parle Agro's Frooti is India's first national mango drink. The mango
segment is 95% of the Indian fruit drink market and Frooti has 85% market share in the
tetra pack segment. Made from fresh and premium Indian mangoes, Frooti has grown to
be one of India's top 50 most trusted brands. When Parle Agro launched N-Joi with real
fruits and fresh milk, it not only launched a new healthy beverage, but also created a
whole new category in India. The milk shake claims to contain no preservatives and is
full of nutritional goodness. It’s delicious filler and apt quick refreshing nourishment for
today's hectic stressful life.
55
Appy, another premium drink from the Parle portfolio, is a
deliciously light and refreshing apple drink made from orchard fresh apples from
Himachal Pradesh. It's a favorite with the young generation as a tasty, healthy,
nourishing drink. Parle Agro has also diversified into the fitness industry and has set up
fitness centers in Juhu and Malad in Mumbai with aggressive plans to expand
nationally. Says Ms. Nadia Chauhan, Director, Marketing, "Parle Agro remains
committed to refreshing India and constantly caters to the health and quality-conscious
consumer through newer and varied initiatives." Parle Agro is the first to introduce fruit
drink in a tetra pack in India, the first to introduce apple nectar and the first to introduce
fruit drinks in PET bottles in India and the first to develop a real fruit and dairy fresh milk
brand.
Bisleri 48%
Bailley 22%
Aquafina 3%
Kinley 4%
Himalaya 2%
Kingfisher 1.50%
Local 19.50%
56
Bisleri48%
Bailley22%
Aquafina3%
Kinley4%
Himalaya2%
Kingfisher1%
Local19%
SHARE IN % OF MAJOR PLAYERS OF MINIRAL WATER
SWOT Analysis of Parle Agro
Strengths
Parle Brand – Parle has a Brand Name
Diversified product range - Parle Group has diversified products in its portfolio, it has
fruit drinks like Frooti, Appy, N-Joi , Confectionary items, Snacks etc in its portfolio. In
Mineral Water segment it has bailey as it’s product.
57
Low and mid price range Catering to mass – It’s Price is vey affordable for its customers
Weakness
Dependence on retailers & grocery Stores for displaying diversified Parle Products on
shelf – Parle Agro’s product display is dependent on retailer’s & Grocerry Stores
Opportunities
Estimated annual growth of 20% Low per capita consumption – It is expected that the
per capita consumption will grow
Changing consumer preference - Consumer’s preference is increasing ,demand for
sugar free product is increasing every year
Threats
Hike in cost of production due to hike in Raw material cost - Production cost is affecting
profitability of Parle Agro
Increasing distribution cost – Increased distribution cost has also effected Parle Agro’s
profit
Local bakery products - Their are bakery products from local baker’s which is a threat
for Parle Agro
58
CHAPTER-3
RESEARCH
METHODOLOGY
Research:
Viewing a particular phenomenon that already exists is called as Research. In other
words, searching and doing study on any existing substance from the universe is called
as Research. A universe is the total population on which the research study is to be
done or is being conducted.
Methodology:
59
The in the Methodology contains the steps involved in the research, which are used to
solve problem of research.
Research methodology
Many companies that invent new products set high initial value to the products and
similar to the practice in the industry and these rates are typically decided on the basis
of products positioning, demand, competition, inflation and other factors. Even small
differences in prices can signal product differences. Many direct marketers’ monitor
inventories, costs and demand at any given moment and adjust prices instantly.
Throughout most of history, prices were set by negotiations between buyers and sellers.
This project depends upon the primary as well as secondary sources which are as
follows.
Components of research problem:
There must be an individual or a group of individuals, which has some difficulty or
some problems.
There must be some objectives to be attained.
There must be some alternative means to obtain the objectives.
There must be some environment.
Why we study research methodology?
To get an inside about every knowledge.
To determine the association of one activity with another activity.
To determine the characteristics of an individual or a group of individuals or
various activities or their frequency of occurrence.
Importance of research methodology in management:
60
•Helps the managers to take good decisions.
•Provide the managers, more knowledge and better information.
•Helps the management for new product development.
•Availability of improved techniques and tools to meet this need
•Helps in customer satisfaction
Types of research:
Two types of research are there.
1. Exploratory research
2. Conclusive research
Conclusive research further divided into two categories Descriptive and Experimentation
Research.
Sources of Data Collection
There are two sources of Data Collection
1. Primary Sources
The Data collected directly from the universe by conducting interview, etc. These are
the original Sources from which the researcher directly gathers data which are not
previously referred, observation. Many companies that invent new products set high
initial value to the products and similar to the practice in the industry and these rates are
typically decided on the basis of products positioning, demand, competition, inflation
and other factors. Even small differences in prices can signal product differences. Many
direct marketers’ monitor inventories, costs and demand at any given moment and
adjust prices instantly. Throughout most of history, prices were set by negotiations
between buyers and sellers.
SAMPLE SIZE AND AREAS COVERED
61
• A customer-based survey was conducted in which 100 m canteen owner were
asked to fill the questionnaire in which 100 responded during the brand availability and
brand visibility event around Hyderabad like AMMERPET, MEHENDIPATNAM,
BANJARAHILLS ,UPPAL ,KOTI, KONDAPUR, etc..
2. Secondary sources
The data are collected from secondary sources such as magazines, journal etc. These
sources consist of already variable data in a form of statement, and report, which may
include sensory report, financial statement of the company, report of Government
department, etc.
Chapter-4
Data collection /Analysis
62
&
Interpretation
1. Do you have a canteen in your College ?
1 Yes 45
2 No 55
63
Total 100
Yes45%
No55%
Series 1
From the above graph it is interpreted that out of 100 respondents, 45% respondents said they
have canteen and 55% respondents do not have canteen.
2. Do you purchase Beverages for your canteen?
1 Yes 60
2 No 40
Total 100
64
Yes60%
No40%
Sales
From the above observations of graph out of 100 respondents, 60 respondents said that
they purchase Beverages and 40 respondents that they do not purchase Beverages.
3. Which brand you would like to purchase more in quantity?
1 Pepsi 50
2 Coca Cola 30
3 Parle-Agro 13
65
4 Others 7
Total 100
Pepsi50%
Coca Cola30%
Parle-Agro13%
Others7%
Sales
From the above graph it is observed that 50 respondents buy pepsi, 30
respondents buy Coca Cola followed by Parle Agro which is 13 and others is 7.
4. What influenced your decision to purchase Parle Agro product?
1 Demand by
Consumer
40
2 Brand Name
Reliability
35
66
3 Quality 15
4 Advertisement 10
Total 100
Demand by Consumer
40%
Brand Name Re-liability
35%
Quality15%
Advertisement10%
Sales
From the above graph it is observed that out of 100 respondents, the maximum respondents
buy Parle Agro Product because of demand, 40 respondents Demand by consumer, 15
respondents Brand Name Reliability, 15 respondents Quality, 10 respondents Advertisement
5. According to brand preference which brand do you think is the toughest
competitor for Parle Agro product?
1 Pepsi 55
2 Coca-Cla 38
3 Others 7
Total 100
67
Sales
PepsiCoca-ClaOthers
From the above graph it is observed 100 respondents, 55 respondents think
pepsi is toughest competitor for Parle Agro product,38 respondents think
toughest competitor for parle Agro,7 respondents think other toughest competitor
for parle Agro.
6. Which brand of fruit juice you prefer to purchase?
1 Maaza 40
2 Slice 25
68
3 Frooti 30
4 Others 5
Total 100
Mazza40%
Slice25%
Frooti30%
Others5%
Sales
From the graph it is observed that out of 100 respondents, 40% are purchase maaza,
25% are purchase Slice, 30% are purchase frooti, 5% are purchase other brand.
7. which brand of water battle you prefer to purchase?
1 Kinley 40
2 Aquafina 32
3 Bailley 10
4 Others 18
69
Total 100
Kinley40%
Aquafina32%
Bailley10%
Others18%
Sales
From the graph it is observed that out of 100 respondents, 40% respondents are like to
purchase kinley, 32% respondents are like to purchase Aqufina, 10% respondents are
like to purchase Bailey, 18% respondents are like to purchase other brands.
8. which brand of snacks you prefer to purchase ?
1 Lays 40
2 Kurkure 32
3 Bingo 12
70
4 Hippo 4
5 Others 12
Total 100
Lays40%
Kurkure32%
Bingo12%
Hippo4%
Others12%
Sales
From the above graph it is observed out of 100 respondents, 40% respondents like to
purchase lays, 32% respondents like to purchase Kurkure, 12% respondents like to
purchase Bingo, 4% respondents like to purchase Hippo, 12% respondents like to
purchase other brand.
9. Do you think brand visibility will increase the sales of Parle Agro products?
1 Yes 55
2 No 35
3 Can nt say 10
71
Total 100
Yes55%
No35%
Can nt say10%
Sales
From the chart it is observed that out of 100 respondents, 55% respondents are visibility
will increase the sales of Parle Agro products. 35% respondents are visibility will
increase the sales of Parle Agro products 10% respondents are visibility will increase
the sales of Parle Agro products.
10. Are you satisfied with the service of Parle Agro?
1 Yes 60
2 No 40
72
Total 100
Yes60%
No40%
Sales
From the above graph it is observed that out of 100 respondents, 60% respondents are
like to satisfy in Parle Agro services, 40% respondents are like to not satisfied in parle
Agro services.
11. What do you expect as a customer from Parle Agro products?
73
1 Quality 40
2 Purity 22
3 Availability 12
4 Loyalty 18
5 others 8
Total 100
Quality40%
Purity22%
Availability12%
Loyalty18%
others8%
Sales
Interpretation:-This chart represents that 48% respondents expect quality from Parle
Agro products 22% respondents’ purity from Parle Agro product.12% respondents
Availability from Parle Agro product. 18% respondents Loyalty from Parle Agro product.
8% respondents other from Parle Agro product .
74
Findings, suggestions and
conclusions
Findings of the study:-
75
• Here it is found that in the current market scenario every college & IT company
canteen is keeping frooti and confi in their shops. Penetraion is 100%.
• According to the brand preference the college & IT company canteen are willing
to purchase Parle Agro product in more quantity as compared to others whereas Pepsi,
Coca-Cola and Cadbury have a smaller presence.
• If we see the influence factor then we can found that canteen are willing to buy
Parle Agro product due to the brand name and then after for customer demand whereas
quality influences little beat at last merchandising come to their mind.
• According to the competition of merchandising, Coca-Cola is the toughest
competitor of Parle Agro. Pepsi, Dabur, Perfetti Van melle are also creating very good
competition.
• Merchandising can use as a tool to increase the off take off a company because
maximum respondents strongly agreed and many respondent agreed that it may
increase the sales whereas no body disagreed.
• According to the shelf space it is found that front shelf is meant to create
maximum impact in the customer’s mind as compared to side shelf-space and back
shelf-space.
•Coca-cola ,mazza, and kinley merchandise is best accepted as up-to-date one and
thus it is competing with Parle Agro in this field of Beverage.
• Parle Agro is giving the best customers service and stands first among its
competitors. It maintains its CRM very effectively and efficiently.
. The company has a very committed and dedicated marketing department
• Creating awareness through Internet or through Audio/ visual or through Print
media is best done by Parle Agro.
• According to the variety of product (product lines) Coca-Cola, Pepsi, ITC is
competing with Parle Agro in this respect.
76
• Distribution is regarded as one of the important factor in FMCG industry; here in
my study Parle Agro has a good distribution network comparing Coca-Cola.
Recommendations:-
The Brand visibility should be up to date and should create impulse in the mind of
customer.
It should take steps to create more canteens by offering, “Catchy & Intelligent
schemes”.
The attitude of salesman with the college & IT company Canteens owners must
be helping & communication in formal way.
Exchange Policies of all Parle Agro Product due to expiry or damage should be
properly communicated to customers during Sale.
The salesman appointed by the company must be literate and should have good
communiacation skills.
The company should appoint merchandiser under every distributer to increase in
off take of the company.
Conclusion
After going thick on the thing, now time is to make a complete picture, while making a
product a SKU of the shop retailers think about the customer needs and they promote
the brand which provides them highest satisfaction. They expect return in the form of
profit margin, company schemes, window display and references of the shop. Among
these, company schemes make the differences and are the highest source of motivation
after profit margin. So a food and beverages company should focus both on pull and
push strategy.
BIBLIOGRAPHY
77
Books
Principle of marketing 13 th edition by (Philip Kotler) (Gary Armstrong)
Published by Dorling Kindersley (India) licensees of Pearson Education in
South Asia
Marketing management 4th edition by (V S Ramaswamy) ( S Namakumari)
Published by Rajiv Beri for Macmillan Publishers India ltd
Marketing by (Joel R. Evans) (Barry Berman)
Macmillan Publishers India ltd
Business Marketing 3rd edition by (F Robert Dwyer) (Jhon F Tanner)
Published by Tata Mcgraw Hill Education pvt. Ltd.
Marketing Research by Gilbert A. Churchill, Dawn Iacobucci and D.Israel
Published by Cengage Learning.
Business Research Methodology 1st edition 2008 by J.K. Sachdeva
Published by Himalaya publishing house
Research methodology in management 5th edition by Dr. V.P Michil
Published by Himalaya publishing house
Websites
78
http://www.google.co.in/
http://www.wikipedia.org/
www.Parleagro.co.in
www.indianeconomy.com
www.naukrihub.com
www.marketresearchdata.com
Survey (Questionnaire)
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1. Do you have any canteen in your College & IT company?
a) Yes( )
b) no( )
2. Do you purchase fruit drinks for your shop?
a. Yes ( )
b. No. ( )
3. Which brand you would like to purchase more in quantity?
a. PepsiCo ( )
b. Coca-Cola ( )
c. Parle Agro ( )
d. Others ( )
4. If yes, what influenced your decision to purchase a Parle Agro product?
a. Demand by consumer – ( ),
b. Brand name and reliability ( ),
c. Quality ( )
d. Advertisement (merchandising)( )
5. Which brand do you think is the toughest competitor to Frooti /Appy?
a. Mazaa
b. Slice
c. Others
6. Which brand of fruit juice you prefer to purchase?
a. Maaza
b. Slice
c. Frooti
d. Others
80
7. Which brand of water battle you prefer to purchase?
a. Kinley
b. Aquafina
c. Bailley
d. Others
8. Which brand of snacks you prefer to purchase?
a. Lays
b. Kurkure
c. Bingo
d. Hippo
e. Others
9. Do you think brand visibility will increase the sales of Parle Agro
products?
a) Yes
b) No
10. Are you satisfied with the service of Parle Agro?
a) Yes
b) no
81