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A Project Report On “THE PERCEPTION OF THE RETAILERS TOWARDS THE VARIOUS DISPLAY STRATEGIES IMPLEMENTED BY SELECTED FMCG COMPANIES, NAMELY; HINDUSTAN UNILEVER LTD., PROCTOR & GAMBLE LTD., CADBURY LTD, NESTLE FOODS PVT. LTD. AND ITC Ltd.” At Pepsico India Holdings Pvt.Ltd. Submitted to S.V. Institute of Management, Kadi Summer Internship Programme In fulfillment of the requirement of the award for the degree of Master of Business Administration In Gujarat Technological University Under the guidance of Prof. Mitesh Jayswal Associate Professor S.V. Institute of Management, Kadi Submitted by Name Ms. Payal Trivedi Enrollment No. 117490592033 Batch 2011-13 Semester- III, June-July 2012
Transcript

A Project Report

On “THE PERCEPTION OF THE RETAILERS TOWARDS THE VARIOUS

DISPLAY STRATEGIES IMPLEMENTED BY SELECTED FMCG

COMPANIES, NAMELY; HINDUSTAN UNILEVER LTD., PROCTOR &

GAMBLE LTD., CADBURY LTD, NESTLE FOODS PVT. LTD. AND ITC

Ltd.”

At

Pepsico India Holdings Pvt.Ltd.

Submitted to S.V. Institute of Management, Kadi

Summer Internship Programme

In fulfillment of the requirement of the award for the degree of Master of Business Administration

In Gujarat Technological University

Under the guidance of Prof. Mitesh Jayswal Associate Professor

S.V. Institute of Management, Kadi Submitted by

Name Ms. Payal Trivedi Enrollment No. 117490592033

Batch 2011-13

Semester- III, June-July 2012

Institute’s Certificate

This is certified that this Summer Internship Project Titled “The perception of the retailers

towards the various display strategies implemented by selected FMCG companies,

Namely; namely; Hindusan Unilever Ltd., Proctor & Gamble Ltd., Cadbury Ltd.,

Nestle foods Pvt. Ltd. and ITC Ltd.” is the bona fide work of Ms. Payal Trivedi who

carried out the research under my supervision. I also certify further, that to the best of my

knowledge the work reported herein does not form part of any other project report or

dissertation on the basis of which a degree or award was conferred on an earlier occasion on

this or any other candidate.

Signature of the Faculty Guide

(Prof. Mitesh Jayswal)

(Associate Professor)

Signature of the Head of Department

(Prof. (Dr.) BhavinPandya)

Students’ Declaration

I, Payal Trivedi hereby declare that the report for Summer Internship entitled “The

perception of the retailers & towards the various display strategies implemented by

selected FMCG companies, Namely; namely; Hindusan Unilever Ltd., Proctor &

Gamble Ltd., Cadbury Ltd., Nestle foods Pvt. Ltd. and ITC Ltd.” is a result of our own

work and our indebtedness to other work publications, references, if any, have been duly

acknowledged.

Place: Kadi

Date: (Payal Trivedi)

Preface

“Experience is the best teacher”. The saying has played a guiding role in the infusion of the

project report as a part of summer project after first year of Master of Business

Administration (M.B.A) program of the Gujarat Technological University. The infusion gets

a special consideration and importance to the program as it allows a student as exposure to

the real business life.

Management learning remains incomplete without a test of real business life. Thus theoretical

knowledge is not enough for management students; practical study holds an important place.

Our knowledge remains incomplete without practical aspect.

By this I come to know about different areas and my knowledge is also enhanced. For this

study I have selected reputed company in the Beverages Industry which i “PepsiCo India

Holdings Pvt. Ltd.”. Today in this era of competition, every company requires those valuable

data which put them above their fierce competitors, retailers, and media etc. if anyone has to

study all of them there is only one way and that is “market research”. I have also assigned to

do a market research on The perception of the retailers towards the various display

strategies implemented by selected FMCG companies, Namely: Hindustan Unilever

Ltd., Proctor & Gamble Ltd., Cadbury Ltd., Nestle Foods Ltd., ITC ltd.” “It is indeed a

golden opportunity for me to present this report and indeed a matter of esteem honor itself. ”

Acknowledgement

From the beginning, I like to thank the GOD for giving me this wonderful opportunity to

work with the PepsiCo India Holdings Private Ltd. for the Summer Internship Project. And

later my parents and brother because, they believing in me.

Then comes, GUJRAT TECHNOLOGICAL UNIVERSITY, through its help I get a chance

to improve the Practical knowledge of mine by analyzing “The perception of the retailers

& pre-sales representatives towards the various display strategies implemented by

selected FMCG companies, Namely; Hindustan Unilever Ltd., Proctor & Gamble Ltd.,

Cadbury Ltd. Nestle Foods Ltd., and ITC ltd.”. Later, I would like to sincerely thank my

project guide Mr. Dinanath Pai(General Manager Sales Development– Gujarat Unit) and I

would also like to thank Mr. Tapan Joshi(Customer Executive),and all the Pre-Sales

Representitives of the Nisarg Distributor because of their help I was able to approach the

retailers of the displays easily.

Then, I am grateful to Head of Department, Prof. Bhavin Pandya as he personally help me to

contact with the company and my mentor Prof. Mitesh Jayswal and because of their helps &

supports and the guidelines, I can able to make my Project-Report of PepsiCo India

Holdings Private Ltd. successfully. Finally, I would like to thank each & every staff

members of my college for the co-operation given by them to make my report successfully.

With a deep sense of gratitude I express my thanks to all those who have been instrumental in

the development of the project report. I am also indebted to all lecturers, friends and

associates for their valuable advice, stimulated suggestions and overwhelming support

without which the project would not have been a success.

Executive Summary

The FMCG industry is a low-margin business. Volumes hold the key to success in this

industry. That is why the industry places so much emphasis on marketing. FMCG majors

fight out in the marketplace to reach out to the masses and compete with brands in similar

product categories. Fast Moving Consumer Goods companies need to rationalize costs, invest

in brand building and offer more value-added products. That is the recipe for success in the

competitive domestic FMCG industry.

So, as a part of my research work, I have analyse the perception of the retailers and the sales

–representatives regarding the Display system implemented by the selected FMCG

companies, Namely; Hindustan Unilever Ltd., Proctor & Gamble Ltd., Cadbury Ltd., Nestle

Foods Ltd., ITC ltd.”

For that I have surveyed ten outlets of each of the above mentioned companies in

Ahemadabad city. For this purpose I have applied exploratory research method and the

research instrument was Questionnaire. I have used most of open ended questions in it. I

have also gone through literature review with help of secondary data including journals, book

sections and various webpages regarding the benefits of the retailers from the Display System

and regarding problems of retailers with display system.

During the data collection process , I came to know that ITC is providing Maximum benefits

as return on the display system to its retailers compare to above mentioned other companies.

Other than this, I also came to know that, in all companies, the display related work is being

carried out by the third party that is called the marketing companies. The super visor of the

these marketing companies are having the Planogram of the present display. And according

to that the merchandise of the company will place the products at their display and its audit is

carried out by the company on weekly, fortnightly, monthly and on quarterly basis which is

based on the purchase quantity and the type and size of the display.

The return on display is paid in either cash or in the form of goods which is being deducted

from the Bill at the end of the particular time limit.

The rules and regulations of all these companies vary but the criteria for the rules and

regulations mainly are to maintain the purity and charging at the display, target purchase

quantity, visibility and the maintenance.

The planogram of the company is possessed by the supervisor of the marketing and there are

regular visits of the merchandiser of the marketing company for arranging and maintaining

the Display so the retailers don‟t have much idea regarding this thing as the but I luckily get

one planogram which I have included in annexure

The common problems of the retailers towards the display system which I came to know are

as follows.

Many retailers face the problems regarding the Irregularity in payments on the

display. They feel that, the company is not deducting the rent on the display in time

from their purchase bill.

The Service related problems like; as the stock is not receive as per the order, the

delivery van is not come as per the promise given by the sales person which is

necessary to place the products at the display.

The Shortage of stock is being found by the retailers specifically, for the successful

products like, Kissan tomato ketch-up, cheese spread, Dove, dairy milk, Maggi etc.

is generally face by the retailers.

INDEX

S.r

No.

Sub s.r.

No.

PARTICULAR

Page

No.

PREFACE I.

ACKNOWLEDGEMENT II.

EXECUTIVE SUMMARY III.

IV.

1 INTRODUCTION OF THE DISPLAY SYSTEM

1.1 The Concept of Display Strategy 01

1.2 History of the Display system 01

1.3 Importance of retail display in competitive market 03

1.4 Benefits of retail system 04

1.5 The Concept of Display case 05

1.6 Types of Display in Retail Outlets 05

1.7 Factors affecting to the retail Display Strategies 07

2 LITERATURE REVIEW

2.1 Literature Review related to the benefits perceived

from the display system

09

2.2 Literature reviews related to the problems or

difficulties found with the display system

11

3 RESEARCH METHODOLOGY

3.1 Objectives of the Study 13

3.2 Scope of the study 13

3.3 Research methodology 13

4 Analysis

4.1 Analysis of the general questionnaire 14

4.2 Analysis of the Specific company wise 19

5 FINDINGS 59

6 CONCLUSION 60

7 BIBLIOGRAPHY 65

8 ANNEXURE 67

Chapter-1 Introduction of the Display System

1.1 The Concept of Display Strategies:-

Creating an attractive product display can draw the customer in, promote a slow-moving

item, announce a sale, or welcome a season. If your store front is fortunate enough to feature

one or more windows, then you have one of the most proven (and least expensive) forms of

advertising at your disposal.

Some stores located in a mall or other structure may lack windows, but don't despair. There

are many places throughout the store to build beautiful displays.

1.2 History of the Display System:-

In our current, consumer-oriented culture, people do not shop merely to obtain items they

need, but also to satisfy their wants. Frequently, shopping does not even involve making a

purchase. For consumers, window-shopping has become a popular pastime. Visual

merchandisers create "miniature worlds" for merchandise in an effort to attract the attention

of consumers, draw them into the store and keep them coming back in the future. Despite the

advanced techniques seen in visual displays, visual merchandising is not a new concept or art.

As early as the 18th

century, merchandise was staged in interesting and unique arrangements

to attract consumers.

Prior to the late 18th

century, when the contemporary methods of visual merchandising began

to evolve, store owners and managers cared little for the appearance of their stores and the

presentation of merchandise. Very little merchandise was displayed within the store. Rather,

a customer would enter the store and speak with the retailer, who would then present

merchandise that was kept in a back room. "Sales talk" and an ability to persuade were very

important in convincing a customer of the quality of a product and making a sale. The

evolution in store design brought about a new "process" of shopping. It was no longer a

verbal engagement between retailers and customers, but now a "sensory experience". The

first step in the evolution of store design occurred when small stores began to display their

merchandise openly to the public, instead of keeping it stored in back rooms. Eventually, the

deliberate displaying of goods became an important tool for retailers. What was once

unattractive stores that were not meant to visually appeal to consumers, slowly became

exciting shopping venues.

Saving labour is one of the corner stone‟s for stores to remain competitive. As a consumer we

see this by the increased use of self-scanning and self-check-out. But behind the scenes,

Display provides a whole set of solutions that simplify every day store work.

It is common knowledge that a fully fronted shelf will sell better than a shelf that is not.

When he can provide solutions that both improves store presentation, and at the same time

saves remerchandising time, investment decisions become easy. So, ultimately, A display

device is an output device for presentation of information in visual or tactile form (the latter

used for example in tactile electronic displays for blind people). When the input information

is supplied as an electrical signal, the display is called an electronic display.

Following are the main 4 main categories of Sales Drivers – elements which affect the

rate of sale of a product:

Distribution

Availability

Visibility

Promotion

Distribution

DAVP is a pyramid, with D for Distribution at the base. Suppliers agree an assortment

with retailers, varying at individual product level according to the store type or size.

Without Distribution the product is simply not on sale and it is therefore the primary

sales driver.

Availability

The supplier works with the retailer to assure continuous availability of the product, by

optimizing both organizations’ logistics and operations functions.

Visibility

Manufacturers and retailers typically work together to produce a planogram or map of

the fixture showing how the product will be displayed, and how this varies by outlet type

and size.

Promotion

If a product is in regular distribution, continuously available and easily seen by the

consumer, it is likely that a promotional event will produce a sales increase.

1.3 Importance of Retail Display in competitive marketplaces:-

Research on purchase behavior in the US reinforces the importance of in-store advertising

solutions given that the majority of buying decisions are made at the point of sale. As new

products are released to the markets every day, creative display solutions are the key element

to promote your brand. According to POPAI (Point of Purchase Association International)

retail displays account for around 60% of total purchase volume made in-store.

An inviting store environment that includes attractive retail display design significantly

affects shoppers' perception of merchandise quality and price level tolerance. It is proven that

a pleasing shop atmosphere with a professional employee image build customer trust and

encourages visitors to stay longer, visit more regularly and purchase more. This is one of the

most important efforts to make to establish differentiation from competitors and ensure

higher margins.

1.4 Benefits of Retail Displays:-

Retail display solutions can have many beneficial effects if you understand principals of

modern store design, you know which type of display you would like to use and at which

position you want to place it.

Retail fixtures have a huge impact on consumer decisions. More likely shoppers will

be attracted to a well presented product and are willing to accept the price for a higher

value they perceive.

Not only will a retail display increase your products' sales potential and stimulate

impulse purchasing, it also will secure your bottom line profits.

Keep your brand uniform. Retail displays allow you to keep a consistent brand image

across a broad range of categories and formats. If you market your brand in many

different stores, then it is inevitable to create great unified display design for your

product.

Target your customer base. Understanding the special taste and expectations of a

customer demographic, you can effectively use custom retail display designs to attract

a targeted customer base and influence the way they perceive your brand.

Sell by teaching. Use carefully printed graphics and signs to accentuate an items

feature. Inform your customers about the exclusive benefits that your product offers.

Because of the sequencing in the arrangement, Salesmen get the idea of the quantity

available with the retailers in his outlet. so, it is time-saving and money-saving

system.

1.5 The concept of the Display Case:-

A display case (aka showcase or display cabinet) is a cabinet with one or often more

transparent glass (or plastic, normally acrylic for strength) sides and/or top, used to display

objects for viewing, for example in an exhibition, museum, house, in retail, or a restaurant.

Often labels and/or prices are included with the displayed objects, providing information. In

a museum, the objects are normally part of the museum's collection. In retail, the objects

are normally being offered for sale.

A display case may be freestanding on the floor, may be smaller and mounted on the wall,

or may be hanging from the ceiling. Display cases are typically made by specialist

companies with a background in woodworking or welding, and come in standard sizes or

often are custom order. Display cases are often designed with security in mind and are

normally lockable. They also are made in variety of styles, shapes, and materials as

available at a store fixture supplier.

1.6 Types of Displays in the Retail Outlets:-

(1) Window Display.

(2) Hardware Display in the form of hooks & peg hooks.

(3) Counter Display.

(4) Other sub types of Display.

(1)Window Display:

A display window (most commonly called shop window (British English) or store window

(American English)) is a window in a shop displaying items for sale or otherwise designed to

attract customers to the store. Usually, the term refers to larger windows in the front façade of

the shop. Display windows at boutiques usually have dressed-up mannequins in them.Putting

a window display of merchandise in a store's window is called "window dressing", which is

also used to describe the items displayed themselves. As a figure of speech, "window

dressing" means something done to make a better impression, and sometimes implies

something dishonest or deceptive.

(2) Hardware Display in the form of hooks & peg hooks:-

Pegboard hooks for perimeter displays, gondolas, and pegboard. Palay Display also carries

Break Resistant Nylon Pegboard Hooks. Our standard pegboard hooks come in lengths from

2" to 12", super duty pegboard hooks as well as double loop pegboard hooks for added

stability, and short "J" hooks and "L" hooks, which lock into place on the pegboard. These

pegboard hooks can help the company to complete all your pegboard displays.Pegboard

hooks for perimeter displays, gondolas, and pegboard. Palay Display also carries Break

Resistant Nylon Pegboard Hooks. Our standard pegboard hooks come in lengths from 2" to

12", super duty pegboard hooks as well as double loop pegboard hooks for added stability,

and short "J" hooks and "L" hooks which lock into place on the pegboard.

(3)Counter Display:-

Display Warehouse has all sorts of countertop displays to showcase the wares to potential

customers. May be as a retailer, he/sheis looking for an acrylic display case to show the

customers some of the company‟s items or may be need a brochure display holder with an

acrylic sign holder to present some magazines or maps of the local area. Whatever your

needs, whether its acrylic displays or jewelry displays, Display Warehouse can help the

retailers as well as salesman to find exactly the items you need. Check out our vast selection

of displays, and we‟re sure you‟ll find the right countertop display or acrylic display case will

definitely make the store look great.

(4) Other type of Display:-

During the data collection I found some other types of the displays like; Rack Displays and

the Hygiene Corner which is generally found in Medical stores of the Nestle for its baby

powder. The same way, the Rack Displays is also found in the retail store for the products

like, Noodles, shampoos etc.

Factors Affecting To the Retail Display Strategies:-

Remember retailers own the space, even if you end up paying a subsidy, space in

retail is scarce. Optimize the space – think product storage & additional shelf space

not just product demo. ROI is king - think Turnover / m2 used. At the end of the day

aren‟t you in it for the same reasons = to sell more products.

Try to make retailers life easier = address their concerns – How to sell your products

/ and how to sell more of it. Your display is a silent sales man. It can also become an

education tool to the sales people in the store and show them how to sell your product.

Think modular / changeable / mobile. Remember

nobody wants a piece of decor forever. Stores are an ever

changing environment, refreshing the layout is always

good. If your display is getting in the way of the retailer‟s

operations it will end up in the bin or at the back. This

should force you to think about telling a story, and come

up with regular upgrades and refreshes.

Think location, make sure you grab appropriate locations (beware of shelf contagion

issues – they may be products you do not want to be next to). Think foot traffic and

circulation within the store. Think visibility (and try not to obstruct visibility –

retailers can be very itchy about line of sight).

Adopt the snowball strategy. Setup trial locations, and use the results to sell the

setup to others. Retailers can be very jealous of each other‟s, it can block you but it

can also work in your favor. Prove your worth first and replicate. Also if you do

not get the best location right away, you can still re-adjust and improve your next

sites. Get accepted first.

And finally do not think your work stops once you have setup your display locations.

It does not... keeping them clean, tidy and up to date is critical... making sure the

material is aging properly against the day to day grind. Nothing worse than a broken

or half working display. A sales person from the company should sure you have

the resources to re-visit and maintain your displays on a regular basis.

Counter Display

Window/Shelf Display

some other types of display

Chapter-2Literature Review

2.1 Literature Reviews related to the Benefits perceive from the

Display System:-

As per Agee and Inman “A billboard on a highway, except that it must attract more than the

attention of the passer-by. It must stop them in their tracks and make the sale” (Agee,

1998).Many customers seem to interpret ISD as signals or cues of a good deal (

Inman&Agee,1990 1998 respectively).

Studies in private sector journals indicate that point-of purchase stimuli, especially vibrant

visual images such as those on cigarette packaging, encourage unplanned purchases. One

study found four out of five purchase decisions are made while the shopper is in the store.

Another study found that 27% of consumers bought unplanned items because of in-store

displays. Seventy to eighty percent of decisions are made in the store; so appealing packaging

may have considerable influence over purchase patterns (McCarville, 1999).

In Corstjens & Doyle, and Grewal‟s model, demand for each product is a function of own-

and cross-space elasticity (rather than price elasticity). Thus, the amount of space allocated to

each product determines the demand for all products. The model seeks to maximize the

profits of a retailer subject to a capacity limit on total shelf space (which equates to

considering a single shelf) and upper and lower bounds on individual product quantities. Into

the moderating factors of ISD could improve our understanding of how displays work and

offer useful guidelines to retailers and manufacturers for developing in-store marketing plans

(Corstjens & Doyle, andGrewal 1981,2009).

Displays highlight specific products, such as by adding signals or marks (e.g., tags), changing

the presentation layout (e.g., special storage method), or presenting the product in a different,

often more isolated area of the shelf or store (e.g., end-of-aisle displays). According to the

psychological and consumer behavior literature, these changes in the store environment

attract attention and stimulate exploratory behavior(Babin, 1995).

Many customers seem to interpret ISD as signals or cues of a good deal (Inman, 1990).

According to Dreze &Babin, product locations and facing areas can influence consumers

„attentions and thereby their purchase decisions. Previous research distinguishes two groups

of consumers who differ in their self-regulation tendency and sensitivity to environmental

stimuli (Dreze &Babin, 1994,1995).

POP acts as a surrogate salesperson. It has been found that a high level of brand awareness

does not always translate into sales. Shoppers do take into consideration the information they

acquire in stores, in addition to relying on out of store communication (Underhill P, 1998).

Another nonlinear model is provided to suggest that demand is a function of the amount of

displayed inventory and the space elasticity of the product (Bai and Kendall 2005).

2.2 Literature Reviews related to the Problems or Difficulties

found with the Display System:-

Displays do not allow for a direct and detailed comparison of the displayed product with

alternative items in the assortment, which complicates the evaluation and risks a loss in

utilitarian value (Arnold, 2009).

Previous research indicates that advertising clutter substantially reduces the effectiveness of

displays, especially when a high degree of similarity marks the simultaneously displayed ads

(e.g., product type, advertising claims) (Anderson, 2001).

For in-store marketing instruments such as ISD that mainly attract attention but do not

provide a real value advantage, category expansion effects should be weak or insignificant

(Bell, 1999).

For instance, a recent study regarding milk sales in New York showed that a seven percent

increase in milk sales could be realized by effective shelf management techniques, including

increasing the visibility of products (Chung, 2007).

According to latest research reported by POPAI (Point of Purchase Agency International)

most of the consumers are making their purchase decisions at the point of purchase. They

estimate that over 60% of total purchase is attributed to retail displays as the major

promotional element in store (Tom).

The most important aspect of successful in-store displays is for retailers to understand their

customers and their habit (Terrazas, 2008).

Shopping trolleys designed to accommodate kids require strategic trolley height displays that

will catch the children‟s attention because children play a big role in shopping trends

(Terrazas, 2008).

Strategic displays can then be devised that help to increase sales especially through

unplanned purchases by consumers. One strategy may be to identify the commonality of

goods bought by list-buyers and then attractively display complementary products next to

these common products (Crispen, 12 June, 2009).

Advertising attracts; but the success of all communication efforts in many cases depends on

the last five per cent of the effort which manifests itself at the POP just before the consumer

chooses to buy, rather than the 95 per cent that preceded it (Quelch J and Cannon-

Bonventre K, 1983).

Visual merchandising also induces shoppers to stay at the retail outlet for a longer duration

Leading to increased spending (Donover, Rossiter, Marcollin and Nesdale, 1994) .

All of the existing shelf-allocation models consider shelves in one-dimensional (width) space

only. As a result, their focus is on the number of product facings while ignoring the stacking

process (thus, facing area and multiple display orientations) as retailers‟ decision variables.

However, that significantly abstracts away from the reality of retailers‟ decision context. The

model includes own product space effects and demand-related marketing variables but

ignores cross-elasticity in demand. To guarantee integer valued allocation quantities, the shelf

is broken into “slots” such that each product‟s size is a multiple of the slot sizes. This is the

only model to address the idea of stackable products, although hit does not allow for multiple

display orientations or joint price optimization Zufryden (1986).

Chapter-3 Research Methodology

3.1 Objectives

To find out which types of Display strategies used by the mentioned FMCG

Companies

To study the rules and regulations for display system and check its

implementation level

To study the perceived benefits of current display system to the retailers.

3.2 Scope of the Study

To analyse the Display System of 10 unorganised and semi-organised Retail Outlets of

each mention company in the Ahmadabad city.

3.3 Research Methodology:-

Research Type:-Applied Research

Research Design: - Exploratory & Conclusive-Descriptive-Cross-sectional.

Data Source: - (1) Secondary Data: - The data can be gather from the Reference

Books, Articles and Journals. And the official websites.

(2) Primary Data: - The Data gather by the Interviewer

Administered Questionnaire.

Research Instruments: - Closed & Open ended Questions has been developed

with the help of available literature.

Mechanical Observation (photographs/snapshots)

Sampling Method: - Non- probability technique.

(i)Convenience.

Contact Method: - (i) Personal Interview.

Sampling Units: - 10 Retailers of the each above mention FMCG Companies.

Sampling Area: - Ahmadabad city, Gujarat.

Duration: - 6-8 Weeks.

Chapter-4 Analysis

4.1 Analysis of the General questionnaire

1) The type of outlets which are being surveyed.

TYPE OF Outlet Frequency Percentage

Convenience 12 35.29%

Eatery 2 05.88 %

Grocery 20 58.83 %

Interpretation:-

The maximum display of the selected FMCG Companies ,is available at the grocery

shop in the market.

Then comes the convenience store where the medical stores & Pan parlous are having

the displays of the selected FMCG Companies.

And Kabhi B and another one outlet where the display of the above company can be

found .

0

5

10

15

20

Convenience Eatery Glocery

12

2

20 Types of Outlet

2) From the below companies, How many companies’ products are available at the

outlets?

Company Products PERCENTAGE

HUL 24 17.91 %

P&G 22 16.42 %

Cadbury 32 23.89 %

Nestle 30 22.39 %

ITC 26 19.40 %

Interpretation:-

The Ninety four per cent of the total outlets are having the products of Cadbury which

is the highest in the selected FMCG Companies.

Then comes, Nestle which gets the second largest position in availability of the

products at the display.

The products of the ITC, HUL, P & G are also available in the outlets respectively.

0

10

20

30

40

HUL P&G Cadbury Nestle ITC

24 22

32 30 26

Products

3) Currently, the company’s/companies’ display scheme, is /are available at the

outlets.

Company Available Displays

Percentage

HUL 13 16.46 %

P&G 11 13.92 %

Cadbury 17 21.52 %

Nestle 21 26.50 %

ITC 17 21.52 %

Interpretation:-

In the market survey, I found that, currently the display scheme of the Nestle Foods

Private Ltd. is maximum available at the outlets.

And the display scheme of P & G is very less in terms of the availability. It is highly

available at the medical stores.

0

5

10

15

20

25

HUL P&G Cadbury Nestle ITC

13 11

17

21

17

Available Displays

4) The type of the display schemes implemented by the selected FMCG companies.

Types of Display HUL P & G Cadbury Nestle ITC

Window Display 12 7 13 19 16

Hook Display 4 5 5 11 3

Counter Display 1 2 15 2 0

None of these 0 0 4 1 0

Interpretation:-

As above said, large number of the displays are given by Nestle in the current market,

in which the Window display is available in the larger part the Hook display, Counter

Display etc. are located on the respective basis.

Then, comes, ITC on that display scheme a person can only find two types of the

displays as Window Display and Hardware Display in the form of Hook & Peg Hook

respectively.

Then comes, Cadbury where you can find all types of displays but, less than the ITC.

In Cadbury, Counter Displays are available in higher quantity, then window display is

more located. And then, Hook display & Other type of display like, Visi.

0

2

4

6

8

10

12

14

16

18

20

HUL P & G Cadbury Nestle ITC

window Display

Hook Display

Counter Display

None of These

Then comes, HUL in which very less number of the display can be seen. Out of these,

window display of the company are more located as compare to Hook Display &

Counter Display.

At last, the display scheme of P & G, which is currently seen in very less number of

the outlets specifically in medical stores where window display are in the larger

quantity then comes Hook display and later Counted display of the company.

4.2 Analysis - specific company vise

Section-1 Hindustan Unilever Limited:-

The glimpse Of The Types Of The Display system:-

Window Display:-

Vaseline Body Lotions Dove Shampoos Kissan sauce & jams

Shampoos Shampoos Kissan sauce, cheese spread

& jams.

Lifebuoy Hand wash Ponds White Beauty &

Lifebuoy Hand wash

Pepsodent Toothpaste, Taj

Mahel Tea& Vaseline

Ponds Face washes Shampoos- Dove& Sunsilk Vaseline Body Lotions

Hardware in the form of Hook & Peg-Hook Display:-

Rin Detergent Powder Dove Shampoos Shampoos

The benefits to the retailers

It is found that, some of the retailers receive the fixed rent on the Window Display of

the Shampoos, Ketch- ups, Body Lotions etc. it is vary as per the Sales Capacity of

the retailers.

While the remaining retailers receive the discount in the form of percentage of the

total targeted purchase quantity of the specific display products.

The rent or the Discount on the Display is generally given on the quarterly basis by

deducting the prescribed amount from the bill of the retailers.

The rent on the display generally found in the range of Rs.100 to Rs.600 p.m. for the

quarterly basis.

It is generally vary on the basis of the products, sales capacity of the retailers,

visibility of the display, size of the display, purity1 level and on the achievement of

the targets which is predetermined in the form of targeted purchase quantity of the

Display‟s products.

On the Window Display with the Hook Display of the Shampoos like; Sunsilk, Dove,

Clinic All Clear etc. the retailer receives Rs.600 p.m. for the quarterly basis, which is

frequently found during the field work.

On the permanent Soaps‟ Display, retailers receive 2 per cent on the purchase

quantity of Rs.15000 which is in the form of the sales target for a quarter or gets the

fixed rent of Rs.150-Rs.250 p.m. on the window display.

On the window display of the Kissan Ketch-ups, Cheese Spread, Jams 3 retailers

from the more than 10 retailers gets the 5-7 per cent on the MRP of the purchase

1 Purity means, at the display, only company‟s product must be available which is the current display item for

the company.

quantity for the quarterly basis which is amounted on an approximately around

Rs.525.

The big retailers (who have the higher capacity of the sale) of the companies will

receive Rs.1000 extra or other benefits of the trade promotional schemes if he

possesses 5 or more window displays in their outlets.

As per the views of the retailers, the sale of the particular products of the display is

comparatively become more than the other products of the company.

The Rules and Regulations to the retailers

To get the Display of the Company, retailers need to follow the rules and regulations or

the conditions given by the company. Following are the rules and regulations or

conditions generally given by the HUL for the display system to its retailers:-

From the all retailers 1 common thing receive while asking them regarding the

rules and regulations or conditions is to maintain the purity level at the

display.

The secondly, prescribed stock must be placed at the display according to its

planograms.

The retailers need to purchase the goods which is the equivalent to the targeted

purchase quantity which is varying on the basis of sales capacity of the

retailers.

It is also vary on the basis of the products, visibility, purity level which is

predetermined in the form of purchase quantity of the Display‟s products.

The size of the window for the display must be situated as per the norms of the

company.

If the products at the display didn‟t found as per the planogram, the negative

marking is done by the Company on the incentive given to that particular

retailers.

The target for the purchase quantity will vary from the Rs.10, 000 to70, 000

on the quarterly basis. This is again differing on the basis of the type of the

display and also on the type of the products which is place on it. The sales

capacity of the retailers will also become the important factor to target the

purchase quantity.

For the shampoos‟ display 24 bottles of the each SKU should be available at

the display.

For the Ketch-ups and cheese spread etc. 10 bottles of the each SKU require

for the display as per the rules mention by the company.

Planogram for the Display System

In the company, display related work is carried forward by the 3rd

party called; Marketing

Company on behalf of the company. The supervisor of the company will have the

Planogram2 of the Display which is change after the certain period of time.

So, retailers as well as salesmen have no idea regarding the planogram of the particular

display. As the merchandiser visit the outlets on weekly, fortnightly or monthly basis to place

the products on the display as per the planogram. This time duration will also vary on the

basis of the requirement of the arrangements and maintenance of the products at the display

and the sales capacity of the retailers.

The audit is being carried out by them on a monthly basis as per the norms in which the

snapshots of the current display is carried forward by the company‟s supervisors to the Head

Office and according to that, the return on that display is being delivered to that particular

retailer of the company and incentives also given to its merchandiser for his/her great duty.

Though the irregularities is being found by the retailers of the company.

The planogram is based on the following criteria like;.

The visibility is needed to be maintaining as per the norms of the display.

Purity level is required of at least 80% of total quantity at the display.

Each SKU of the products must be placed on the present display.

The required number of the stock level needs to be purchased as per the display norms

to place it on the display as per the planogram. For e.g.; 24 bottles of the all SKUs of

Sunsilk and 10 Bottles for Kissan Ketch-up, and cheese spread and 3 soaps of each

flavors of Lifebuoy.

2 Planogram means, sequencing of the products at the display.

Problems related to the Display System

Sixty per cent retailers don‟t have any problem with the Company Following are the some

common problems often face by the retailers from the company. So, as per their view, it‟s the

successful company which is dealing with the Display system. And from the view point of

the remaining forty per cent retailers, following are the some of the common problems which

are being face by the retailers.

Many retailers face the problems regarding the Irregularity in payments on the

display. They feel that, the company is not deducting the rent on the display in time

from their purchase bill.

The Service related problems like; as the stock is not receive as per the order, the

delivery van is not come as per the promise given by the sales person which is

necessary to place the products at the display.

The Shortage of stock is being found by the retailers specifically, for the successful

products like, Kissan tomato ketch-up, cheese spread, Dove etc. is generally face by

the retailers.

The shortage of Cheese spread is frequently found by the retailers.

Section-2 Proctor & Gamble Pvt.Ltd:-

The glimpse Of The Types Of The Display system:-

Window Display:- The glimpse Of The Types Of The Display

system

PANTENE Shampoos ARIEL Detergent Powder PANTENE Shampoos &

ARIEL Detergent Powder

PANTENE Shampoos PANTENE Shampoos Shampoos

PENTENE and Head &

Shoulder Shampoos

Gillette’s Products Pampers

VICKS Vapor rub Sanitary Pads Gillette Body Spray

Hardware in the form of Hook & Peg-Hook Display:-

ARIEL Detergent Powder Tide Detergent Powder Oral-B Tooth Brush

The benefits to the retailers

It is found that, some of the retailers receive the fixed rent on the Window Display of

the Shampoos, Detergent Powder Vicks, Pampers, sanitary pads etc. and on the hook

display of Shampoos, Detergent Powders, Tooth brushes, Gillette shaving cream and its

blades etc. it is vary as per the Sales Capacity of the retailers.

While the some other retailers receive the discount in the form of percentage of the

total targeted purchase quantity of the specific display products.

The benefit is given by the company in the form of cash discount or in the form of cheque or

in the form of goods given as return on the display by the company.

On the peg hook or hook display of the Gillette Blades, the retailer gets Three per cent

of the total purchase quantity, which must be of Rs. 5000 at least for the quarterly

basis.

On the window display of the products like; PENTENE, AREIAL, Tide etc. the

retailer receives Four per cent on the total purchase quantity which is vary from the

1,00,000 To 3,00,000 for the quarterly basis.

The cash display discount receive by the retailers, on the window display, is vary

from Two per cent To Five per cent flat on the predetermined targeted purchase

quantity. Which is based on the sales capacity of the retailers. This is again for the

quarterly basis.

The fixed rent is also provided by the company in the range of Rs.200 p.m. To

450p.m. for the window display of Detergent Powders, Shampoos etc. for the

quarterly basis.

On the window display of the Vicks & Head & Shoulder, the retailers receive Rs.200-

Rs.300 and Rs.200 p.m. respectively. This is again for the quarterly basis.

On the window display of Pampers & the hook display of Gillette Blades the retailer

receives Ten per cent i.e. Rs.200 on the total targeted purchase quantity of the month

i.e. of Rs.2000.

The fixed rent given of Rs 8000 p.m. to the permanent member of the company for

holding the display for the quarterly basis. The targeted purchase quantity for them

will be of at least Rs.1, 25,000 which is again for the quarterly basis.

The Rules and Regulations to the retailers

To get the Display of the Company, retailers need to follow the rules and regulations

or the conditions given by the company. Following are the rules and regulations or

conditions generally given by the Proctor & Gamble Private Ltd. for the display system to

its retailers:-

From the all retailers 1 common thing receive while asking them regarding the

rules and regulations or conditions is to maintain the purity level at the

display.

The secondly, prescribed stock must be placed at the display according to its

planograms.

The retailers need to purchase the goods which is the equivalent to the targeted

purchase quantity which is varying on the basis of sales capacity of the

retailers.

It is also vary on the basis of the type of the products, visibility, purity level

which is predetermined in the form of purchase quantity of the Display‟s

products.

The size of the window for the display must be situated as per the norms of the

company.

If the products at the display didn‟t found as per the planogram, the negative

marking is done by the Company on the incentive given to that particular

merchandiser as well as retailers.

For the display, 24 bottles of the each SKUs must be purchased by the retailers

as per company‟s norms to place it at the display. It is specifically found for

the display of the Shampoos and Detergent powders, Vicks vapor rub etc.

The target for the purchase quantity will vary from the Rs.5, 000 to70000 on

the quarterly basis. This is again differing on the basis of the type of the

display and also on the type of the products which is place on it. The sales

capacity of the retailers will also become the important factor to target the

purchase quantity.

Planogram for the Display System

In the company, display related work is carried forward by the 3rd

party called; Marketing

Company on behalf of the company. The supervisor of the company will have the Planogram

of the Display which is change after the certain period of time.

So, retailers as well as salesmen have no idea regarding the planogram of the particular

display. As the merchandiser visit the outlets on monthly or quarterly basis to place the

products on the display as per the planogram. This time duration will also vary on the basis of

the requirement of the arrangements and maintenance of the products at the display and the

sales capacity of the retailers.

As per the display‟s norms of the company, the audit is being carried out by them on a

monthly basis in which the snapshots of the current display is carried forward by the

company‟s supervisors to the Head Office and according to that, the return on that display is

being delivered to that particular retailer of the company and incentives also given to its

merchandiser for his/her great duty. Though the irregularities is being found by the retailers

of the company.

The planogram is based on the following criteria like;

The visibility is needed to be maintaining as per the norms of the display.

Purity level is required of at least 80% of total quantity at the display.

Each SKU of the products must be placed on the present display.

The required number of the stock level needs to be purchased as per the display norms

to place it on the display as per the planogram. For e.g.; 24 pieces of the all SKUs of

PENTENE, ARIEL, Tide, pampers, Vicks and it will also apply to the sanitary pads.

Problems related to the Display System

The sixty per cent of the total outlets which is being surveyed, only face the problems

from the company regarding its display system. Following are the common problems

which are generally face by the retailers.

As per the view point of the retailers, the displays of the company are in very less

number in the market.

It is mostly found only in the medicals.

The service related problem found by the retailers as they claim that, they didn‟t

receive the goods as per the order given by them.

The lack of stock is generally found by the retailers as the salesman doesn‟t come on a

regular basis.

The return on the display doesn‟t come within predetermined time duration as it is not

deducted from the bill, on the regular basis.

Retailers found that, sometimes company didn‟t give cash discount on the display as

in place of that goods of the equivalent quantity specifically, which is new in the

market, is being provided by the company.

Section-3 Cadbury Pvt.Ltd

The Glimpse of the types of the Display System

Window Display:-

Dairy Milk Bournvita, & Celebration Bournvita

Bournvita Bournvita, Gems

&Celebration

Celebration

Hardware in the form of Hook & Peg-Hook Display:-

Chocolates Banner with the Chocolates’

Advertisement

Cadbury Balls

Other types of the display:-[Freeze and Counter Display]

Visi visi3 Chocolates’ Dispenser

3Visi means, Visual cooler or Visual Freeze.

The benefits to the retailers

Following are the main benefits receive by the retailers from the Cadbury:-

Fifty per cent of the total outlets are getting the display of the company.

The retailers of the company receive the display discount in the form of the per cent

of the total targeted purchase quantity and also get the fixed rent on the window

display of the company‟s products. The discount is being deducted either from the bill

or the extra goods of that equivalent amount is given by the company.

The display discount is varying between the Two per cent To Eight per cent of the

total targeted purchase quantity. it is on the quarterly basis and generally applies to

the display of the Chocolates.

The retailer gets Rs.250 p.m. on the window display of the chocolates specifically,

Dairy Milk, on the quarterly basis.

The retailers get the benefit of the warranty on the expired stock which is reversible

by the company.

The fixed rent on the window display of the company‟s products other than the

chocolates is being received by the retailers within the range of Rs.100 p.m. To

Rs.400 which is again on the quarterly basis.

The retailers, who have done the Eleven months contract regarding the Display

System with the company, will receive the extra display discount in the form of

percentage of the total purchase quantity.

The Rules and Regulations to the retailers

To get the Display of the Company, retailers need to follow the rules and regulations or the

conditions given by the company. Following are the rules and regulations or conditions

commonly given by the Cadbury for the display system to its retailers:-

From the all retailers 1 common thing receive while asking them regarding the rules and

regulations or conditions is to maintain the purity level at the display.

The secondly, prescribed stock must be placed at the display according to its

planograms.

The return on the display is also varying on the basis of the products, visibility, purity

level which is predetermined in the form of purchase quantity of the Display‟s products.

The retailers need to purchase the goods which is the equivalent to the targeted purchase

quantity which is varying on the basis of sales capacity of the retailers. For the Cadbury,

sales targets easily achieved by the retailers.

The size of the window for the display must be situated as per the norms of the company.

If the products at the display didn‟t found as per the planogram, the negative marking is

done by the Company on the incentive given to that particular retailers.

For the chocolates display, SKUs generally 24 pieces of the single variety should be

available at the display.

The target for the purchase quantity will vary from the Rs.2, 700 to1,00,000 on the

quarterly basis. This is again differing on the basis of the type of the display and also on

the type of the products which is place on it. The sales capacity of the retailers will also

become the important factor for the target of the purchase quantity.

Planogram for the Display System

In the company, display related work is carried forward by the 3rd

party called; Marketing

Company on behalf of the company. The supervisor of the company will have the Planogram

of the Display which is change after the certain period of time.

So, retailers as well as salesmen have no idea regarding the Planogram of the particular

display. As the merchandiser visit the outlets on monthly or quarterly basis to place the

products on the display as per the Planogram. This time duration will also vary on the basis of

the requirement of the arrangements and maintenance of the products at the display and the

sales capacity of the retailers.

As per the display‟s norms of the company, the audit is being carried out by them on a

monthly basis in which the snapshots of the current display is carried forward by the

company‟s supervisors to the Head Office and according to that, the return on that display is

being delivered to that particular retailer of the company and incentives also given to its

merchandiser for his/her great duty. Though the irregularities is being found by the retailers

of the company.

The Planogram is based on the following criteria like;

The products can be maintained at the display on the FIFO Basis.

In the dispenser which is itself a part of the counter display, the chocolates are being

arranged from top to bottom as per the range & their varieties.

The visibility is needed to be maintaining as per the norms of the display.

Purity level is required of at least 80% of total quantity at the display.

Each SKU of the products must be placed on the present display.

The required number of the stock level needs to be purchased as per the display norms

to place it on the display as per the Planogram.

Problems related to the Display System

Twenty per cent retailers don‟t have any problem with the Company but, the following are

the some common problems often face by the retailers from the company. So, as per their

view, it‟s the successful company which is dealing with the Display system. And from the

view point of the remaining Eighty per cent retailers, following are the some of the common

problems which are being face by the retailers.

Many retailers face the problems regarding the Irregularity in payments on the

display. They feel that, the company is not deducting the rent on the display in time

from their purchase bill. And also give the chocolates like; Temptation, Bernville etc.

which have higher range and rarely demanded by the customers.

The Service related problems like; as the stock is not receive as per the order, the

delivery van is not come as per the promise given by the sales person which is

necessary to place the products at the display.

The Shortage of stock is being found by the retailers specifically, for the dairy milk

worth of Rs.10 & flavors in dairy milk silk.

Replacement related problem is sometimes found by the retailers as the

The shortage chocolates generally face by the retailers at the time of the celebrations

like, New Year, Christmas, Diwali, Valentines‟ Day, Rakshabandhan, and on the

Friendship Day.

Section-4 Nestle Foods Private Ltd.:-

The glimpse Of The Types Of The Display system:-

Window Display:-

Nesquick& coffee mate Nes coffee Sauce &Neutralite

coffee & Maggie NAN PRO

(Baby Powder)

Neutralite, Nestea,

Milkmaid &Nes coffee

Maggie Cerelac(Baby Powder)

Maggie, Sauce, Soups

& coffee

Counter Display:-

Chocolate Dispenser Chocolate Dispenser Maggie Suggestion Box

Hardware in the form of Hook & Peg-Hook Display:-

Nestea Maggie Bhuna Masala, Nestea,&

Maggie Noodles

Maggie Coffee with clock Sunrise Coffee

The benefits to the retailers

Following are the main benefits receive by the retailers from the Nestle Foods Private Ltd.

Around sixty five per cent of the total outlets are getting the benefits of display from

the Nestle Foods Private Ltd for the quarterly basis.

Based on the total targeted purchase quantity, the retailers get the fixed rent on the

window display of the company‟s products. The discount is being deducted either

from the bill or the extra goods of that equivalent amount is given by the company.

The fixed rent on the window display of the company‟s products is being received by

the retailers within the range of Rs.100 p.m. To Rs.1200p.m.which is again on the

quarterly basis.

The retailers, who have done the Eleven months contract regarding the Display

System with the company, will receive the Display discount within the range of

Rs.1200 to Rs.8000 p.m. which is based on the total targeted purchase quantity of

around 1,25,000 per quarter and the sales capacity of the retailers. This will also

change on the quarterly basis.

The fixed rent received on the widow display of CERELAC a baby powder and on the

NAN-PRO, a milk powder of Rs.200-Rs.250 p.m. on the quarterly basis.

Through the impulse buying sales of the displayed products will increase as compare

to other products of the company.

The Rules and Regulations to the retailers

To get the Display of the Company, retailers need to follow the rules and regulations or the

conditions given by the company. Following are the rules and regulations or conditions

commonly given by Nestle Foods Private Ltd. for the display system to its retailers:-

From the all retailers 1 common thing receive while asking them regarding the

rules and regulations or conditions is to maintain the purity level at the

display.

The secondly, prescribed stock must be placed at the display according to its

Planogram.

The return on the display is also varying on the basis of the products,

visibility, purity level which is predetermined in the form of purchase quantity

of the Display‟s products.

The retailers need to purchase the goods which are the equivalent to the

targeted purchase quantity which is varying on the basis of sales capacity of

the retailers.

If the products at the display didn‟t found as per the Planogram, the negative

marking is done by the Company on the incentive given to that particular

retailers.

For the display, 24SKUs of the single variety should be available at the

display.

The target for the purchase quantity will vary from the Rs.1000 to2, 10,000 on

the quarterly basis. This is again differing on the basis of the type of the

display and also on the type of the products which is place on it. Thesales

capacity of the retailers will also become the important factor for the target of

the purchase quantity.

The size of the window for the display must be situated as per the norms of the

company.

For the Noodles, at least 24 pieces of the each SKU should be available with the

retailers for its display.

Planogram for the Display System

In all the company, display related work is carried forward by the 3rd

party called; Marketing

Company on behalf of the company. The supervisor of the company will have the Planogram

of the Display which is change after the certain period of time.

So, retailers as well as salesmen have no idea regarding the Planogram of the particular

display. As the merchandiser visit the outlets on monthly or quarterly basis to place the

products on the display as per the Planogram. This time duration will also vary on the basis of

the requirement of the arrangements and maintenance of the products at the display and the

sales capacity of the retailers.

As per the display‟s norms of the company, the audit is being carried out by them on a

monthly basis in which the snapshots of the current display is carried forward by the

company‟s supervisors to the Head Office and according to that, the return on that display is

being delivered to that particular retailer of the company and incentives also given to its

merchandiser for his/her great duty. Though the irregularities is being found by the retailers

of the company.

The Planogram is based on the following criteria like;

The products can be maintained at the display on the FIFO Basis.

In the dispenser of the chocolates which is itself a part of the counter display, the

chocolates are being arranged from top to bottom as per the range & their varieties.

The visibility is needed to be maintaining as per the norms of the display.

Purity level is required of at least 80% of total quantity at the display.

Each SKU of the products must be placed on the present display.

The required number of the stock level needs to be purchased as per the display norms

to place it on the display as per the Planogram.

Problems related to the Display System

Around fifty nine per cent of the total retailers of the survey, having the problem with the

company regarding the Display System. Following are the main problems which are

generally

face by the retailers from the company.

Many retailers face the problems regarding the Irregularity in payments on the

display. They feel that, the company is not deducting the rent on the display is not in

time from their purchase bill.

The Service related problems like; as the stock is not receive as per the order, the

delivery van is not come as per the promise given by the sales person which is

necessary to place the products at the display.

The Shortage of stock is being found by the retailers specifically, for its popular

product Maggie.

Replacement related problem is sometimes found by the retailers specifically in the

Bhuna Masala as expiry come in near future.

Section-5Indian Tobacco Company:-

The glimpse Of The Types Of The Displaysystem:-

Window Display:-

Classic Sun feast Dark Fantasy &

Dream Cream

Gold flakes

Dark Fantacy Vivel Face washes Fiama De Vills Soaps

Vivel Soaps Convenience store is renovate

with the display of

Classic[inner side]

Yippee Noodles

Fiama De Vills Soaps Sun feast Biscuits Sun feast Biscuits

Hardware in the form of Hook & Peg-Hook Display:-

Classic’s Banner Convenience store is renovate

with the display of

Classic[outer side]

Banner of Gold-Flakes

The benefits to the retailers:-

Following are the main benefits receive by the retailers from the Indian Tobacco

Company.

Around fifty per cent of the total outlets are getting the benefits of display from the

Indian Tobacco Company. For the quarterly basis.

Based on the total targeted purchase quantity, the retailers get the fixed rent on the

window display of the company‟s products. Generally, the discount is being deducted

either from the bill or it is given on cash.

The fixed rent on the window display of the company‟s products is being received by

the retailers within the range of R.s200 p.m. To Rs.3000p.m.which is again on the

quarterly basis.

On the peg hook display in the form of Banners which is generally of the cigarette

brands like; Bristol, Classic, Gold flakes etc. the retailers receive the rent in the range

of Rs.800 p.m.Rs.7500 p.m.

The extra return is given by the company on the display is to give points to get the

membership of the “master club” card. Generally, the criteria are given for that is to

purchase the goods minimum of Rs.250, so that one point is given by the company to

that particular retailer. The points are also given on the basis of the type of the

products at the display.

The return on the display is also given by the company in the form of which is in the

range of two per cent To five per cent of the targeted purchase quantity which is

differed as per the sales capacity of each retailer.

For the purpose of the display, company had renovate the whole convenience store on

its costs, it is the unique and the biggest amount of the consumption is incurred by the

company.

The Rules and Regulations to the retailers To get the Display of the Company, retailers need to follow the rules and regulations or the

conditions which are the in the smallest number comparatively. Following are the rules and

regulations or conditions commonly given by Indian Tobacco Company for the display

system to its retailers:-

From the all retailers 1 common thing receive while asking them regarding the

rules and regulations or conditions is to maintain the purity level at the

display.

The secondly, prescribed stock must be placed at the display according to its

Planogram.

The return on the display is also varying on the basis of the products,

visibility, purity level which is predetermined in the form of purchase quantity

of the Display‟s products.

The retailers need to purchase the goods which are the equivalent to the

targeted purchase quantity which is varying on the basis of sales capacity of

the retailers.

If the products at the display didn‟t found as per the Planogram, the negative

marking is done by the Company on the incentive given to that particular

retailers.

For the display of the biscuits -Sun feast, 36SKUs of the single variety should

be available at the display.

The target for the purchase quantity will vary from the Rs.1, 000 to60, 000 on

the quarterly basis. This is again differing on the basis of the type of the

display and also on the type of the products which is place on it. Thesales

capacity of the retailers will also become the important factor for the target of

the purchase quantity.

The size of the window for the display must be situated as per the norms of the

company.

For the Fiama De vills, at least 3pieces of the each flavor should be purchased

by the retailers as the targeted purchase quantity.

The targeted purchase quantity is of Rs. 1, 20,000 To 1, 50,000 for the Tobacco

products, it will vary as per the sales capacity of the retailers.

The stock of Rs. 1000 must be available for the display of Yippee Noodles.

Planogram for the Display System:-

In the company, display related work is carried forward by the 3rd

party called; Marketing

Company on behalf of the company. The supervisor of the company will have the Planogram

of the Display which is change after the certain period of time.

So, retailers as well as salesmen have no idea regarding the Planogram of the particular

display. As the merchandiser visit the outlets on monthly or quarterly basis to place the

products on the display as per the Planogram. This time duration will also vary on the basis of

the requirement of the arrangements and maintenance of the products at the display and the

sales capacity of the retailers.

As per the display‟s norms of the company, the audit is being carried out by them on a

monthly basis in which the snapshots of the current display is carried forward by the

company‟s supervisors to the Head Office and according to that, the return on that display is

being delivered to that particular retailer of the company and incentives also given to its

merchandiser for his/her great duty. Though the irregularities is being found by the retailers

of the company.

The Planogram is based on the following criteria like;

The products can be maintained at the display on the FIFO Basis.

The visibility is needed to be maintaining as per the norms of the display.

Purity level is required of at least 80% of total quantity at the display.

Each SKU of the products must be placed on the present display.

The required number of the stock level needs to be purchased as per the display norms

to place it on the display as per the Planogram.

Problems related to the Display System

This is the only company from which the retailers are facing the less number of the problems

as compare to other four selected FMCG Companies. Only Ten per cent of the retailers are

facing the problem with the company.

Following are the some of the problems which are come in the limelight during the data

collection.

The Shortage of stock is being found by the retailers.

The replacement related problems are being found by the retailers near the time of

expiry.

FINDINGS

From the above analysis of the perception of the retailers towards the display system of the

selected FMCG display system, following points come in the highlight which are mention

below:-

The companies are perusing the work related to the display to the marketing company.

So, the merchandiser is maintaining and arranging the display at the outlets so,

retailers have no idea regarding the Planogram of the display.

Generally, The photo copy of the Planogram is available with the supervisor of the

marketing company so, it is not available but, luckily I get the planogram of the

display system of the Nestle which is mention in the annexure of the Hard Copy.

In the study, I came to know that, the most return is given by ITC on the display of its

products to its retailers and the problems regarding that is also very less compare to

other mention companies.

I also came to know that very less number of the display is being found by the P& G

Ltd. which is generally found at the medical stores.

ITC is the best company in providing the services to its retailers as compare to other

mention companies. It also provides the renovation of the convenience store by

spending huge \amount for its retailers.

In Cadbury. The products specifically Chocolates are placed in the dispenser on FIFO

Basis and also according to their range.

The maximum displays are available in the market, it‟s of the Nestle.

In the Display System, HUL‟s service is better as compare to P & G.

Generally, The fixed rent are given on the display of the company or the

predetermined per cent of the total targeted purchase quantity as the return on the

display.

So, ultimately, the Display system is helpful to increase the sales through Impulse

Buying.

CONCLUSION

Benefits to the Retailers

It is found that, out of the above mention selected companies, ITC is giving the

largest return the displays comparatively.

The service related to the display and the delivery of the goods is the best. This

company

Will give the Club membership card to the retailers as they are becoming the member

of the company and accordingly they get the benefits .

It is found that, some of the retailers receive the fixed rent on the Window Display of

the products like, Biscuits, Baby Power, Sanitary Pads, balm, Shampoos, Ketch- ups,

Noodles, Body Lotions etc. it is vary as per the Sales Capacity of the retailers.

While the some other retailers receive the discount in the form of percentage of the

total targeted purchase quantity of the specific display products. It is varying within

the range of 2 per cent to seven per cent. And some retailers will get the benefits of all

the types of display tor receive the return.

The rent or the Discount on the Display is generally given either on the quarterly

basis or on monthly or yearly basis.

The amount of the display is given by companies by deducting the prescribed amount

from the bill of the retailers or place the goods of that equivalent amount.

The rent on the display generally found in the range of Rs.100 to Rs.600 p.m. for the

quarterly basis.

The retailers who are having the permanent membership with the company display

will get the return on the in Thousands of Rupees of the tempo and also qualified to

possess the benefits of the Temporarily executed Trade Promotional Schemes .

The expenses related to the renovation of the store are wholly carried out by the

company like; ITC. It is the most beneficial for the company.

At the Medical store, Hygiene corner is given by Nestle to place its products for the

display, it is the unique benefit given by the company.

The companies like; Cadbury and Nestle, had given the Visi cooler to the retailers

who have the larger sales capacity as a part of the display.

It is generally vary on the basis of the products, sales capacity of the retailers,

visibility of the display, size of the display, purity4 leveland on the achievement of

the targets which is predetermined in the form of targeted purchase quantity of the

Display‟s products.

The big retailers (who have the higher capacity of the sale) of the companies will

receive Rs.1000 extra or other benefits of the trade promotional schemes if he

possesses 5 or more window displays in their outlets.

As per the views of the retailers, the sale of the particular products of the display is

comparatively become more than the other products of the company.

Impulse buying will be possible which enhance the sales of the company.

4 Purity means, at the display, only company‟s product must be available which is the current display item for

the company.

The Rules and Regulations to the retailers

To get the Display of the above mention Companies, retailers need to follow the rules

and regulations or the conditions given by the companies. Following are the common

rules and regulations or conditions generally given by the HUL for the display system

to its retailers:-

From the all retailers 1 common thing receive while asking them regarding the rules

and regulations or conditions is to maintain the purity level at the display.

The secondly, prescribed stock must be placed at the display according to its

planograms.

The retailers need to purchase the goods which is the equivalent to the targeted

purchase quantity which is varying on the basis of sales capacity of the

retailers.

It is also vary on the basis of the products, visibility, purity level which is

predetermined in the form of purchase quantity of the Display‟s products.

The size of the window for the display must be situated as per the norms of the

company the predetermined place which is located by the company.

If the products at the display didn‟t found as per the planogram, the negative

marking is done by the Company on the incentive given to that particular

retailers.

The target for the purchase quantity will vary on the basis of the type of the

display and also on the type of the products which is place on it. Thesales

capacity of the retailers will also become the important factor to target the

purchase quantity.

For the shampoos‟ display 24 bottles of the each SKU should be available at

the display.

For the Ketch-ups and cheese spread etc. 10 bottles of the each SKU require

for the display as per the rules mention by the company.

Planogram for the Display System

In the company, display related work is carried forward by the 3rd

party called; Marketing

Company on behalf of the company. The supervisor of the company will have the

Planogram5 of the Display which is change after the certain period of time.

So, retailers as well as salesmen have no idea regarding the planogram of the particular

display. As the merchandiser visit the outlets on weekly, fortnightly or monthly basis to place

the products on the display as per the planogram. This time duration will also vary on the

basis of the requirement of the arrangements and maintenance of the products at the display

and the sales capacity of the retailers.

The audit is being carried out by them on a monthly basis as per the norms in which the

snapshots of the current display is carried forward by the company‟s supervisors to the Head

Office and according to that, the return on that display is being delivered to that particular

retailer of the company and incentives also given to its merchandiser for his/her great duty.

Though the irregularities is being found by the retailers of the company.

The planogram is based on the following criteria like;.

The visibility is needed to be maintaining as per the norms of the display.

Purity level is required of at least 80% of total quantity at the display.

Each SKU of the products must be placed on the present display.

The required number of the stock level needs to be purchased as per the display norms

to place it on the display as per the planogram. For e.g.; 24 bottles of the all SKUs of

Sunsilk and 10 Bottles for Kissan Ketch-up, and cheese spread and 3 soaps of each

flavors of Lifebuoy.

5 Planogram means, sequencing of the products at the display.

Problems related to the Display System

Sixty per cent retailers don‟t have any problem with the Company Following are the some

common problems often face by the retailers from the company. So, as per their view, it‟s the

successful company which is dealing with the Display system. And from the view point of

the remaining forty per cent retailers, following are the some of the common problems which

are being face by the retailers.

Many retailers face the problems regarding the Irregularity in payments on the

display. They feel that, the company is not deducting the rent on the display in time

from their purchase bill.

The Service related problems like; as the stock is not receive as per the order, the

delivery van is not come as per the promise given by the sales person which is

necessary to place the products at the display.

The Shortage of stock is being found by the retailers specifically, for the successful

products like, Kissan tomato ketch-up, cheese spread, Dove etc. is generally face by

the retailers. The shortage of the goods is being found from the retailers.

Bibliography

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Waterloo, Ontario.

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(4), 413–22.

http://retail.about.com/od/storedesign/a/create_display.htm

http://www.redcliffe.co.uk/point_of_sale/boost-your-sales.htm

http://www.redcliffe.co.uk/point_of_sale/display-counters.htm

http://www.arneg.com/?gclid=COD494CXw7ECFUsb6wodjTEAUA

http;//www.originalconnection.com/index.htm

http://www.displaywherehouse.com/racks.sp

ANNEXURE - I-List of the outlets

(1) Aarasi Parlor

(2) ShriSai Parlor

(3) ArihantKirana Store

(4) Siona seven 11 store(Drive in)

(5) Siona seven 11 store( Bodakdev)

(6) Moonlight Namkeens and Bakery Items

(7) Moonlight Traders

(8) Special Groceries

(9) Chandramauli Provision Store

(10) Satyam Provision Store

(11) Daily Necessities

(12) Bhramani General Store

(13) New Mahavir Trading

(14) Shree Navdurga General Store

(15) Patel Parlor

(16) Cream Corner

(17) Krishna Shop

(18) Swaminarayan Dairy Parlor

(19) Paras Store

(20) Kamal Bakery

(21) ParshvanathKirana

(22) Radhika general store

(23) Shri Krishna General store

(24) Ambica Medical Store

(25) Shreenath Store

(26) KABHI B

(27) Medilink Medical store

(28) Rajasthan Medicines

(29) BhagvatiMedical store

(30) New Pramukh Pan Parlor

(31) Heera cold-drinks

(32) Mallinath Store

(33) Hariom General Store

(34) New Ilaj Medical Store

(35) Umiya Pan Parlor

(36) JagdambeyKirana Store

(37) Jayshri Pan Parlor

(38) Arihant Cold-drinks

(39) Bhakti Medical Store

(40) Mahavir General Store

(41) Shital Parlor & Provision Store

(42) Raj Pan Parlor

(43) HarsiddhKirana Store

(44) Natraj Bakers

(45) Trupti Store

(46) ShyamSundar Pan

(47) Nilkanth Dairy Parlor

(48) Jain Business

(49) T.K. Parlor.

(50) Amikunj Provision Store.

Annexure-II-

Questionnaire

QUESTIONNAIRE-I For Retailers Que. No: _____

Dear Sir /Madam,

I am a student of M.B.A.programme from S.V. INSTITUTE OF MANAGEMENT, KADI.

As a part of our curriculum I required to do a research. I am doing a research on “The

perception of the retailers towards the various display strategies implemented by

selected FMCG companies, Namely; Hindustan Unilever Ltd. Proctor & Gamble Ltd.,

Cadbury Ltd. Nestle Foods Ltd., ITC ltd.” I request you to answer the following question

and help me in my work. I ensure you that the answer given by you will be kept confidential

and use for academic purpose only. (Use (√)

tick to show your opinion)

___________________________________________________________________________

_

Name of Outlet:-_________________________________

Contact No:-_____________________________________

Outlet ID:-_______________________________________

Respondent’s Name:-________________________________

Respondent’s Designation:-____________________________

Type of Outlet

[ ] Convenience [ ] Eatery

[ ] Grocery

Q-1 From the below mentioned companies, how many companies product are available

at your store?

[ ] Hindustan Unilever Ltd. [ ] Proctor & Gamble Ltd.

[ ] Cadbury Ltd. [ ] Nestle Foods Ltd.

[ ] ITC Ltd.

Q-2 Currently, which companies display scheme, is available at your store?

[ ] Hindustan Unilever Ltd. [ ] Proctor & Gamble Ltd.

\\\[ ] Cadbury Ltd. [ ] Nestle Foods Ltd.

[ ] ITC Ltd.

Q-3 Choose the type of display system implemented by the companies that you have

selected in answer of earlier question

Display Systems /

Company

Hindustan

Unilever Ltd

Proctor &

Gamble Ltd

Cadbury Ltd Nestle Foods

Ltd

ITC Ltd

Window Display

Hardware

Display in the

form of hooks &

peg hooks

Counter Display

None of These

If your answer is none of this, please specify:

Hindustan Unilever Ltd: ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Proctor & Gamble Ltd: ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Cadbury Ltd: ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Nestle Foods Ltd: ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

ITC Ltd: ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

SECTION- 1 About The Display System of Hindustan Unilever Ltd.

(Annexure: Photograph of the display form three angle)

Q-1 Kindly explain the benefits to the retailer in this Display System?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-2 Kindly explain the rules & regulations of this Display System? (You can give the

copy of printed document if available)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-3 Kindly explain the planogram of this Display System? (You can give the copy of

printed document if available)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-4 Kindly explain the problems of this Display System if you perceive so?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

____________________________________________________________________

SECTION- 2 About The Display System of Proctor & Gamble Ltd.

(Annexure: Photograph of the display form three angle)

Q-1 Kindly explain the benefits to the retailer in this Display System?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-2 Kindly explain the rules & regulations of this Display System? (You can give the

copy of printed document if available)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-3 Kindly explain the planogram of this Display System? (You can give the copy of

printed document if available)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-4 Kindly explain the problems of this Display System if you perceive so?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

_______________________________________________________________________

SECTION- 3 About The Display System of Cadbury Ltd.

(Annexure: Photograph of the display form three angle)

Q-1 Kindly explain the benefits to the retailer in this Display System?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

__________________

Q-2 Kindly explain the rules & regulations of this Display System? (You can give the

copy of printed document if available)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-3 Kindly explain the planogram of this Display System? (You can give the copy of

printed document if available)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-4 Kindly explain the problems of this Display System if you perceive so?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

_____________________________________________________________________

SECTION- 4 About The Display System of Nestle Foods Ltd.

(Annexure: Photograph of the display form three angle)

Q-1 Kindly explain the benefits to the retailer in this Display System?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-2 Kindly explain the rules & regulations of this Display System? (You can give the

copy of printed document if available)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-3 Kindly explain the planogram of this Display System? (You can give the copy of

printed document if available)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

__________________

Q-4 Kindly explain the problems of this Display System if you perceive so?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

________________________________________________________________________

SECTION- 5 About The Display System of ITC Ltd:

(Annexure: Photograph of the display form three angle)

Q-1 Kindly explain the benefits to the retailer in this Display System?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

__________________

Q-2 Kindly explain the rules & regulations of this Display System? (You can give the

copy of printed document if available)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-3 Kindly explain the planogram of this Display System? (You can give the copy of

printed document if available)

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

Q-4 Kindly explain the problems of this Display System if you perceive so?

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

______________________________________________________________________


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