+ All Categories
Home > Documents > Sip Swapnil

Sip Swapnil

Date post: 03-Apr-2018
Category:
Upload: manoj-mawale
View: 231 times
Download: 0 times
Share this document with a friend

of 72

Transcript
  • 7/29/2019 Sip Swapnil

    1/72

    FRITO LAY INDIA.

    A

    PROJECT REPORT

    ON

    ASSESSMENT AND DEVELOPMENT OF NEW CHANNELS OFDISTRIBUTION

    FORFRITO LAY INDIA.

    SUBMITTED TO

    SCHOOL OF COMMERCE & MANAGEMENT SCIENCES,

    SWAMI RAMANAND TEERTH MARATHWADA UNIVERSITY

    NANDED

    IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE

    MASTER OF BUSINESS ADMINISTRATION (M.B.A.)

    SUBMITTED BY

    SWAPNIL VIJAYKUMAR BHALKIKAR (BATCH - 2011-12)

    UNDER THE GUIDENCE OF

    PROF.MR.B.R SURYWANSHI

    1

  • 7/29/2019 Sip Swapnil

    2/72

    FRITO LAY INDIA.

    ACKNOWLEDGEMENT

    This project bears imprint of all those who have directly or indirectly

    helped and extended their kind support in completing this project.

    At the time of making this report I express my sincere gratitude to all

    of them.

    I must first express my gratitude to Mr. Suhas Vaidya, Area Sales

    Manager and the staff members for having accorded me the permission to

    undertake a project in Frito - Lay India.

    I also must show my deepest gratitude to HOD OF MBA MR.D.M.

    Khandare and Prof.Mr B.R Surywanshi for their valuable suggestions,

    guidance and advice in bringing out this project.

    Yours Sincerely

    - SWAPNIL.V BHALKIKAR.

    2

  • 7/29/2019 Sip Swapnil

    3/72

    FRITO LAY INDIA.

    CONTENTS

    1. INTRODUCTION

    1.1. Executive summary 01-03

    2. PROFILE OF THE ORGANISATION

    2.1. Company Profile 04

    2.2. History of Organization 05-10

    2.3. Products / Services of Organization 11-13

    2.4. Organization chart 14

    2.5. Distribution setup 15

    3. INDUSTRY PROFILE 16

    4. SCOPE OF STUDY 17

    5. OBJECT OF THE STUDY 18

    6. OBJECTIVES OF THE STUDY 19

    7. RESEARCH METHODOLOGY 20-23

    8. DATA COLLECTION AND ANALYSIS

    8.1. Collection of data from Hotel owners, 24-28

    Presentation of the data, and

    Interpretation and analysis of the data

    8.2. Collection of data from Petrol Pump owners, 29-32

    Presentation of the data, and

    Interpretation and analysis of the data

    8.3. Collection of data from Institutional Canteen owners, 33-38

    3

  • 7/29/2019 Sip Swapnil

    4/72

    FRITO LAY INDIA.

    Presentation of the data, and

    Interpretation and analysis of the data

    8.4. Collection of data from Medical Stores owners, 39-43

    Presentation of the data, and

    Interpretation and analysis of the data

    8.5. Collection of data from all channels, 44-49 presentation of

    the data, and

    Interpretation and analysis of the data

    9. LIMITATIONS 50

    10. FINDINGS 51-52

    11. CONCLUSION 53-54

    12. SUGGESTIONS 55

    13. REFERENCE 56

    14. ANNEXURE

    14.1. Sales Report on Newly Developed Channels 57-60

    14.2. Questionnaire for Institutional Canteens 61-62

    14.3. Questionnaire for Hotels 63-64

    14.4. Questionnaire for Medical Stores 65-66

    14.5. Questionnaire for Petrol Pumps 67-68

    4

  • 7/29/2019 Sip Swapnil

    5/72

    FRITO LAY INDIA.

    5

  • 7/29/2019 Sip Swapnil

    6/72

    FRITO LAY INDIA.

    EXECUTIVE SUMMARY

    SECTOR :FMCG (Consumer goods)

    INDUSTRY :Packaged and Snack Foods Industry

    COMPANY :Frito-Lay India Ltd.

    PROJECT TITLE : Assessment and Development of New

    Channels of Distribution

    DURATION : 2 months (1st JANEVARI to 1st MARCH)

    PROJECT :

    Problem: Theres a complex web of distribution channels for the FMCG products

    in general and packaged and snack foods in particular, but not all the channels yield the

    fruitful results. Some infect, yields results even lesser than what resources they consume.

    Then there is a simple fundamental of Whatever is visible, sells in FMCG

    impulse category. The above two conditions put the companies into a typical CATCH 22

    situation.

    Solution: Development and Assessment of New Channels for distribution. New

    channels lead to the increased penetration of the Frito-Lays products. At the same time,

    the new channels were assessed for the sales and level of penetration in terms of the new

    sales addition.

    6

  • 7/29/2019 Sip Swapnil

    7/72

    FRITO LAY INDIA.

    IMPORTANCE OF STUDY :

    In a world full of competition, it is not at all sufficient to rely just on ones

    own Companys standing and distribution channel in the market. It is equally important to

    know and predict the channels performance and hidden potential of new channels that sell

    innovatively, in a way never thought of. Channel analysis, apart from covering the most

    essential concepts of distribution, gives the wide exposure to the field.

    Also, a company however strongly channelized and preferred does not

    works in isolation. Thus, I found it more than required to do a project on development ofnew distribution channel as a whole rather than just one companys traditional channel

    performance.

    METHODOLOGY :

    Sample Plan : New channels Medical stores

    Hotels

    Institutional Canteens

    Petrol Pumps

    Method :

    Stratified Random Cluster Sampling method was adopted. The revealed

    research was adopted, where the information about the objective of survey and brand

    identity was revealed. The sample size was taken around 12% of the universe in case of

    Medical stores because of very big size of universe of around 900. The sample size for

    Institutional canteens and Hotels was in the region of 15% to 17% of the universe, which

    was of size around 350 and 600 respectively. The sample size for petrol pumps was 85%

    because of very limited size of universe at 40.

    Area of Survey: SHIRUR

    7

  • 7/29/2019 Sip Swapnil

    8/72

    FRITO LAY INDIA.

    Sample Size : Medical stores - 111

    Hotels - 105

    Institutional canteens - 55

    Petrol pumps - 34

    HYPOTHESES :Some of the important hypotheses considered while adopting a particular

    marketing strategy are discussed here. The study has been conducted by keeping these

    entire hypotheses in mind. Later a detailed analysis is conducted on the basis of the

    primary and the secondary data collected and conclusions are drawn out of it. The entire

    hypotheses are considered again and their usefulness is studied. After this, acceptance or

    rejection of these hypotheses is recommended to the authorized dealers and same is

    conveyed to the respective officials of Frito-Lays.

    The hypotheses are mentioned below:

    1) Effective distribution network increases the dealer and consumer satisfaction

    and brings more goodwill to the company

    2) Knowledge of customer behavior, reaction pattern and hence its manipulation

    is extremely helpful in increasing the total market.

    3) Effective promotional activities increase the sales,

    4) Knowledge of competitors strengths, weaknesses and competitive advantage

    helps in designing the strategies to deal with it.

    8

  • 7/29/2019 Sip Swapnil

    9/72

    FRITO LAY INDIA.

    PROFILE OF THE ORGANISATION

    2.1 COMPANY PROFILE

    Mission Statement:

    To become the worlds favorite convenience Fun Foods Company.

    PepsiCos Values:

    Our commitment is to deliver sustained growth, through empowered people,

    acting with responsibility and building trust. Heres what this means:

    Sustained Growth is fundamental to motivating and measuring our success. Our

    quest for sustained growth stimulates innovation, places a value on results, and helps us

    understand whether actions today will contribute to our future. It is about growth of people

    and company performance. It prioritizes making a difference and getting things done.

    Empowered People means we have the freedom to act and think in ways that we

    feel will get the job done, while being consistent with the processes that ensure proper

    governance and being mindful of the rest of the companys needs.

    Responsibility and Trust form the foundation for healthy growth. Its about

    earning the confidence that people place in us as individuals and as a company. Our

    responsibility means we take personal and corporate ownership for all we do, to be good

    stewards of the resources entrusted to us. We build trust between ourselves and others by

    walking the talk and being committed to succeeding together.

    9

  • 7/29/2019 Sip Swapnil

    10/72

    FRITO LAY INDIA.

    2.2 COMPANY HISTORY

    1930s

    1932 - The Frito Company is founded by C.E. Dolin in San Antonio, Texas. While eating

    lunch in a San Antonio cafe, Mr. Dolin bought a plain package of corn chips for 5. As

    Mr. Dolins ice cream business was caught in the middle of a price war, he was looking

    for another business venture. For $100, Mr. Dolin bought the recipe for the corn chips and

    a converted potato ricer from a businessman.

    1932 - Herman W. Lay began a small business in Nashville, TN, distributing potato chips

    made by a company in Atlanta, GA.

    1938 - Herman Lay buys a potato chip maker in Atlanta and changes the name to H.W.

    Lay & Company.

    1939 - "Fluffs," later called BAKEN-ETS Fried Pork Skins, is among the products

    incorporated into the Frito Company snack line-up when its founder, C.E. Dolin,

    purchases a small pork skin business and a plant.

    1940s

    1944 - The H.W. Lay Company changes its product name to LAY'S Potato Chips and

    becomes one of the first snack food companies to advertise on television. The commercial

    features the debut of the company's first spokesman in the form of a cartoon character,

    Oscar, the Happy Potato.

    1945 - The Frito Company grants H.W. Lay & Company an exclusive franchise to

    manufacture and distribute FRITOS Corn Chips in the Southeast.

    10

  • 7/29/2019 Sip Swapnil

    11/72

    FRITO LAY INDIA.

    1946 - The Frito Company is one of the first to use its trucks for advertising as well as for

    transportation. The original truck, painted multiple colors, attracts much nation-wide

    publicity and appears in several magazines and newspapers!

    1948 - CHEETOS Snacks, one of the original snack foods produced by the Frito

    Company, is introduced nationally and sky-rockets in popularity within the first month.

    1950s

    1953 - FRITOS Corn Chips introduces "The FRITO KID" in its television and poster

    advertising. The cartoon character, a long-running company spokesman, first appeared in

    the early 1940s in one the first FRITOS recipe booklets; "The FRITO KID" retires in

    1967.

    1956 - The FRITO KID appears on the Today Show with Dave Garraway. The Frito

    Company is the first Texas Company to advertise on NBC television network.

    The Frito Company begins to buy back franchises and to acquire regional snack

    food companies with hopes of consolidating its national distribution and creating

    the first national snack food company.

    1958 - The Frito Company acquires the trademark rights for RUFFLES Potato Chips.

    1960s

    1961 - The Frito Company and the H.W. Lay & Company merge to form Frito-Lay, Inc,

    with headquarters in Texas and sales over $127 million.

    H.W. Lay & Company acquires facilities for the national distribution of ROLD

    GOLD Pretzels, with the purchase of Rod Gold Foods from American Cone and

    Pretzel.

    11

  • 7/29/2019 Sip Swapnil

    12/72

    FRITO LAY INDIA.

    1962 - Frito-Lay introduces a logo designed to communicate the merger between The Frito

    Company and the H.W. Lay & Company.

    1963 - LAY'S Potato Chips coins new slogan: "BETCHA CAN'T EAT JUST ONE.

    1965 - Frito-Lay, Inc. and the Pepsi-Cola Company merge to form PepsiCo, Inc., with

    headquarters in Purchase, NY.

    LAY'S Potato Chips becomes the first brand of potato chips to be sold nationally.

    1969 - FUNYUNS Onion Flavored Rings is introduced.

    1980s

    1980 - Frito-Lay replaces its current logo to capitalize on its new identity in the

    marketplace and the company's reputation for quality. The new logo appears on more than

    9,000 Frito-Lay trucks.

    Frito-Lay introduces CHEETOS Snacks - Puffed Balls.

    1981 - TOSTITOS Tortilla Chips is nationally introduced.

    Frito-Lay is one of the first snack companies to place non-mandatory nutritional

    labeling on its packaging.

    1982 - Frito-Lay launches GRANDMA'S Cookies in 16 varieties -- from sandwich

    creams to fruit-filled oatmeal -- in a test market in Kansas City. This was the first

    significant new cookie line to move into supermarkets in a generation.

    1985 - SANTITAS White and Yellow Corn Round Tortilla Chips are introduced.

    12

  • 7/29/2019 Sip Swapnil

    13/72

    FRITO LAY INDIA.

    1986 - CHESTER CHEETAH becomes the "spoke scat" for CHEETOS and gains

    recognition through the national television and print advertising campaign with the tag

    line: "IT'S NOT EASY BEING CHEESY."

    1990s

    1993 - The national launch of WAVY-LAY'S Potato Chips, a new wavy-cut potato

    chip, occurs in Super Bowl XXVIII with a cameo by former U.S. Vice President Dan

    Quayle.

    BAKED TOSTITOS brand White Corn and Unsalted Tortilla Chips, which offer

    health conscious consumers up to 85% less fat than traditional tortilla chips plus

    good taste, is launched.

    1994 - LAY'S KC MASTERPIECE Barbecue Flavor Potato Chips is introduced

    nationally, marking the first time America's favorite potato chip has entered into a co-

    branding agreement.

    New DORITOS COOLER RANCH brand Tortilla Chips, a 100% white corn

    chip with more ranch seasoning, and DORITOS ZESTY SALSA Tortilla Chips

    are introduced.

    1996 - TOSTITOS brand begins title sponsorship of the Fiesta Bowl Football Classic,

    now referred to as the "TOSTITOS Fiesta Bowl".

    BAKED LAY'S Potato Crisps is launched nationally with television and print

    advertising starring The Muppets' Miss Piggy and supermodels. It becomes the

    most successful Frito-Lay new product launch to date.

    Chester Cheetah - the world's coolest cat and the official "spoke scat" for

    CHEETOS Snacks since 1986 - stars in a new television commercial in which

    the cartoon character appears with live actors.

    13

  • 7/29/2019 Sip Swapnil

    14/72

    FRITO LAY INDIA.

    1998 - Frito-Lay's line of WOW! products made with Olean, including low fat or fat-

    free versions of DORITOS, RUFFLES, LAY'S and TOSTITOS snack chips, is

    launched nationally.

    2000s

    2000 - CHEETOS X'S and O'S Snacks becomes the first time a snack chip product

    contains two shapes in one bag!

    2001 - CHEETOS MYSTERY COLORZ X's and O's Snacks offers all the cheesy

    taste of CHEETOS while magically changing from orange to green or blue when eaten!

    LAY'S Kettle Cooked Extra Crunchy Potato Chips is launched. Offered in a

    variety of flavors, which include Original, Mesquite BBQ, Sea Salt & Malt

    Vinegar and Jalapeno, LAY'S Kettle Cooked chips are made the old fashioned

    way - sliced thick and kettle cooked to lock in flavor and crunch!.

    2003 - Frito-Lay's first-ever line of Natural snacks, including TOSTITOS Blue Corn

    Natural Tortilla Chips, CHEETOS Natural White Cheddar Puffs, and LAY'S BBQ

    Flavored Thick Cut Natural Potato Chips, is introduced. All of the products in the Natural

    line are made with organic ingredients that have been certified by the U.S. Department of

    Agriculture's accredited certifying agency, Oregon Tilt.

    RUFFLES, in celebration of the "re-birth" of RUFFLES and advertising icon

    "Baby Horton," offers $50,000 in college tuition to the parents winning its "Would

    You Name Your Baby Horton?" contest. The winners are the first expectant,

    registered parents who had their newborn by May 20, 2003 and gave the baby the

    first name of Horton.

    Frito-Lay launches print advertising campaign in both English and Spanish to

    announce America's favorite snack chips, including LAY'S, DORITOS,

    TOSTITOS, FRITOS, RUFFLES, and CHEETOS have zero grams of fat!

    14

  • 7/29/2019 Sip Swapnil

    15/72

    FRITO LAY INDIA.

    2004 - Products classified as Sensible Snacks, containing 150 calories or less; have less

    than 35% of calories from fat, zero grams of trans fats, and 240 milligrams or less of

    sodium per 1 oz serving, reach over $1 billion in sales in 2003.

    FRITO-LAY MUNCHIES Kids Mix, the first salty snack with FDA approval

    for fortification, is launched!

    Frito-Lay answers consumers' demand for carb-controlled snacks by introducing

    DORITOS EDGE TOSTITOS EDGE Tortilla Chips.

    15

  • 7/29/2019 Sip Swapnil

    16/72

    FRITO LAY INDIA.

    2.3PRODUCT PROFILE

    Frito-Lay, headquartered in Plano, TX, is the convenient fun foods division of

    PepsiCo, Inc. that makes some of America's favorite snack brands. As of 2003, all of

    Frito-Lay's snack chips contain zero grams of trans fat, including Lay's potato chips,

    Ruffles potato chips, Doritos tortilla chips, Tostitos tortilla chips and Cheetos cheese-

    flavored snacks. Frito-Lay makes and sells a wide variety of low-fat, reduced fat and no-

    fat snacks including Lays Potato Chips, Kurume, Cheetos and Lehar snacks are also

    produced and sold by Frito-Lay.

    The association with Frito-Lay marks the sixth branded food partnership orprivately labeled snack food that AMC has introduced in the past year.

    16

  • 7/29/2019 Sip Swapnil

    17/72

    FRITO LAY INDIA.

    Product Flavors Weight

    (Grams)

    Price

    (Rs.)

    Lays Classic Salted 100 20

    35 10

    15 5

    Magic Masala (Indian) 100 20

    35 10

    15 5

    Tango Tomato (Spanish) 100 2035 10

    15 5

    Cream n Onion (American) 100 20

    35 10

    15 5

    Australian 100 20

    35 10

    15 5

    Masala Cooler 100 20

    35 10

    15 5Cucumber 100 20

    35 10

    15 5

    Hot & Sweet (Caribbean) 100 20

    35 10

    15 5

    Kurume Masala Munch 160 20

    55 10

    22 5

    Red Chili Chaka 160 20

    55 10

    22 5

    Masala Twist 160 20

    55 10

    22 5

    Chili Bites 160 20

    55 10

    22 5

    Chapatti Chaska 160 20

    55 1022 5

    17

  • 7/29/2019 Sip Swapnil

    18/72

    FRITO LAY INDIA.

    Cheetos Xs & Os 34 10

    Tangy Loops 34 10

    Masala Balls 34 10

    Tomato Wheels 34 10

    Lehar Lehar Nankeen 34 5

    14 2

    18

  • 7/29/2019 Sip Swapnil

    19/72

    FRITO LAY INDIA.

    2.4 ORGANISATIONAL CHART

    M.D.

    Marketing Director Finance Director Sales Director H.R. Director

    V.P. Sales

    G.M. (Regional Sales Manager)

    Area Sales Manager

    Sales Officer

    Pilot Sales Representative

    19

  • 7/29/2019 Sip Swapnil

    20/72

    FRITO LAY INDIA.

    2.5 DISTRIBUTION NETWORK FOR FRITO-LAY INDIA LTD.

    Manufacturer (Plant)

    C & F Agent (Warehouse)

    Distributors (Go down)

    Retailers Wholesalers

    Retailers

    20

  • 7/29/2019 Sip Swapnil

    21/72

    FRITO LAY INDIA.

    INDUSTRY PROFILE

    FMCG SECTOR

    Fast moving consumer goods (FMCG) industry has a long history. However, the

    Indian FMCG industry began to take shape only during the last fifty-odd years. To date,

    the Indian FMCG industry continues to suffer from a definitional dilemma. In fact, the

    industry is yet to crystallize in terms of definition and market size, among others.

    The FMCG sector is a cornerstone of the Indian economy. This sector can drive

    growth, enhance quality of life, create jobs and support penetration of technology.

    A vibrant FMCG sector can boost agricultural produce and exports. It can

    contribute to the exchequer significantly; disperse technology across the value chain and

    usher in product innovations. These innovations can improve Indian health standards.

    So, strategies should be worked out for increasing consumption per head. The

    government should grant merit tax status at the central level to higher value-addedFMCGs and allow free inflows of foreign investments and technology.

    The agricultural supply chain needs to be consolidated. Sector-friendly regulations

    should be put in place to enable FMCG companies source agricultural produce with ease.

    Such regulations should be supported by government-sponsored efforts to forge fruitful

    partnerships for networking rural markets. This is one sure way of achieving national

    connectivity.

    21

  • 7/29/2019 Sip Swapnil

    22/72

    FRITO LAY INDIA.

    SCOPE OF THE STUDY

    The survey that had been conducted will help the company to gain an insight into

    the current status of the market. In the world of cut throat competition each player has to

    be strong enough to face the enormous uncertainties. Todays market is very much

    saturated and consumer matured & informed. Every company now-a-days wants to do the

    business in a new way and therefore they are going for new channels for distribution, need

    not say that it adds to the top line of the companys business.

    This study will help Frito-lays India ltd which has international presence to

    understand the potential market and to cover the untapped areas through the development

    of the new channels. These new channels will provide new avenues, exposure to its

    products and result into more share from the consumers pocket. Also the intangibles like

    mind share and brand penetration will increase. Thus the company can increase overallmarket share in its industry of snack food and certainly overcome sudden competitive

    forces. The scope of the study can be described as factors probed into during the surveys

    of the new channels.

    Awareness of Frito-Lays products,

    Source of awareness,

    Availability of other impulse products,

    Readiness of acceptance, &

    Reasons for non-acceptance

    22

  • 7/29/2019 Sip Swapnil

    23/72

    FRITO LAY INDIA.

    OBJECT OF THE PROJECT

    In the partial fulfillment for the award of the award of Masters Degree in Business

    Administration (MBA) of the University of Pune, each MBA student has to undergo the

    practical training in a business organization. The training period consists of at least 50

    days.

    The object of the project is to acquire some practical knowledge in the area of

    specialization. The student should be able to apply the theoretical concepts in the

    practical situation.

    The students ability to solve the problem with a systematic approach is exposed.

    Also his / her decision-making ability is tested.

    23

  • 7/29/2019 Sip Swapnil

    24/72

    FRITO LAY INDIA.

    OBJECTIVE OF THE STUDY

    Projects are critical to the realization of the performing organizations

    Business strategy because projects are a means by which strategy is implemented.

    PRIMARY OBJECTIVE

    To assess and develop new channels of distribution and suggest the strategies to improve

    market penetration for Frito-Lays products.

    SECONDARY OBJECTIVE

    1 To find out market potential for Frito-Lays products in new channels of distribution.

    2 To study product acceptability by new channels of distribution.

    24

  • 7/29/2019 Sip Swapnil

    25/72

    FRITO LAY INDIA.

    RESEARCH METHODOLOGY

    INTRODUCTION

    Research methodology is a systematic and scientific method to know truth and

    reality behind a phenomenon. Research is purposive, objective; systematic investigation

    was designed to test carefully considered or answer through fully framed question. It is

    distinguished from casual observation by its method and point of view. Research is

    purposive in that it seeks answer to specific question and is not merely accumulation of

    unstructured observation.

    The project is based on marketing analysis and thus requires a lot of interaction

    with different target channel players. There are lot many competitors in snack food

    industry. Constrained by the resources, the sample that is more representative of the total

    targeted channel players universe is chosen for the study. The scope of study is limited tothe geographical region of Nasik city only.

    RESEARCH DESIGN

    The exploratory design was used. Exploratory research is conducted when a

    researcher does not know: What? How? and Why? A certain phenomena occur. For

    example, which competing products are available at targeted outlets and reasons for not

    keeping the product under study i.e. Frito-Lays. The research process was divided into

    three phases as:

    Phase 1:

    The research is focused on the hidden business potential in the form of new

    Distribution channels so that the forms of new channels were found out through

    observational primary data in initial market research.

    25

  • 7/29/2019 Sip Swapnil

    26/72

    FRITO LAY INDIA.

    Phase 2:

    In the second phase, again primary data was collected from the selected

    sample for the purpose of delving deeper into the areas of:

    Which other impulse products in snack food were they keeping, if any?

    Were they ready to keep Frito-lays products?

    Reasons for not keeping the same?

    The structured questionnaire contained closed-ended questions, which were

    of dichotomous questions and multiple choice questions.

    Phase 3:

    In the last phase, the converted players in each segment of targeted channel forms

    were analyzed for the gain in off-take of extra SKUs that were otherwise not visible

    before. It was done in the terms of Per Outlet Order (POO) from each of the targeted

    segment.

    DECIDING OF DATA SOURCES

    The next stage is source of data. The data was basically the first hand data,

    (Primary) which was collected through the survey facilitated by secondary data as

    explained below:

    Primary Data:

    The primary data was collected through the survey in two phases. The first

    phase was the observational survey followed by the detailed structured questionnaire

    interview survey. In the first phase, the data was collected in a very short period as it

    involved only observations and led to the important findings that though some outlets of a

    particular type kept the product under study, but not all such outlets kept it uniformly.

    26

  • 7/29/2019 Sip Swapnil

    27/72

    FRITO LAY INDIA.

    In the second phase, survey involved collection of data from the Hotels,

    Institutional Canteens, Petrol Pumps, and Medical Stores. These were the targeted new

    channels sought for Assessment and Development. The samples were collected by visiting

    different areas in SHIRUR city. Thus method of stratified random sampling was used for

    data collection.

    Structured questionnaires were designed to elicit data from the sample

    population. Following sample sizes were drawn for the same.

    The total number of respondents was 305.

    The break-up is as follows-

    Hotels : 105

    Petrol Pumps : 34

    Institutional Canteens : 55

    Medical Stores : 111

    Secondary Data:

    The secondary data was collected from various trade journals regarding the

    total size of the targeted segments of potential new channels i.e. the size of universe in the

    geographical area of SHIRUR city.

    To get an overview in a nutshell, the research methodology can be represented

    through-

    Research Design Four segmental surveys (Hotels, Petrol Pumps, Institutional

    Canteens and Medical Stores);

    Research Instrument Structured Questionnaires;

    Survey Questions Mostly closed ended with some open ended questions on

    personal details;

    Sampling Method Stratified Random Sampling;

    27

  • 7/29/2019 Sip Swapnil

    28/72

    FRITO LAY INDIA.

    Sample Size

    Hotels : 105

    Petrol Pumps : 34

    Institutional Canteens : 55

    Medical Stores : 111

    IMPORTANCE OF STUDY

    The survey that was carried out will help the company to know the current

    scenario. In the world of cut throat competition each player has to be strong enough to face

    the enormous uncertainties. Todays market is very much saturated. Every company today

    wants to do its business in a new way and therefore tries to recognize new channels for

    distribution.

    This study will help Frito lays India Ltd., having international presence to

    understand which new areas it can venture into with its current products in new markets

    and hence cover untapped areas through the development of new channels. Also, this

    project will help the company to make its presence more obvious in the market. Thus the

    company can plan better policies to overcome sudden changes in this competitive world.

    SCOPE OF STUDY

    The primary objective of the project was to assess the current position of Frito-

    lays in the Nasik region and try to identify the strategies to drive sales.

    The secondary objective pursued was to find out market potential for Frito-Lays productsin new channels of distribution and to study product acceptability by new channels of

    distribution.

    Keeping these in mind, the survey was divided over the four potential segments

    and the survey in general included the questions regarding the availability of other impulse

    snack food products, their knowledge and source of knowledge for Frito-Lays products,

    their readiness to keep the products and the reasons for same.

    28

  • 7/29/2019 Sip Swapnil

    29/72

    FRITO LAY INDIA.

    DATA ANALYSIS AND INTERPRETATION FOR HOTELS

    Q: Are you aware of the following brands?

    Data Total %

    Total No. of Hotels 105

    Lays

    Kurume

    Cheetos

    Lehar

    101

    83

    32

    13

    96

    79

    30

    12

    Table 7.1.1: Awareness of brands

    Graph 7.1.1:Awareness of brands

    Interpretation:

    From the

    above diagram,

    we can interpret

    that out of 105

    Hotel owners96% respondents were well aware about Lays, 79% were aware about Kurume, 30% were

    aware about Cheetos and 12% were aware about Lehar.

    So most aware brands of Frito-Lays in the Hotels were

    1. Lays

    2. Kurume

    29

    Awareness of Brands

    12%

    30%

    79%

    96%

    0%

    20%

    40%

    60%

    80%

    100%

    120%

    Lays Kurkure Cheetos Lehar

    No.ofRespondents

  • 7/29/2019 Sip Swapnil

    30/72

    FRITO LAY INDIA.

    Q: How do you know Frito-Lays products?

    Data Total %

    Total No. of Hotels 105

    Posters & Banners

    TV Ads

    Newspaper & Magazines

    45

    101

    4

    43

    96

    4Table 7.1.2: Source of Awareness

    Source of Awareness

    4%

    43%

    96%

    0%

    10%

    20%

    30%

    40%

    50%60%

    70%

    80%

    Posters &Banners TV Ads Newspaper &

    Magazines

    No.ofRespondents

    Graph 7.1.2: Source of Awareness

    Interpretation:

    The above chart depicts that in the Hotel category, the major source of awareness

    for Frito-Lay products has been TV Ads i.e. out of 105 hotels 96% respondents were

    aware by TV Ads and 43% respondents were aware by posters & banners and only 4%

    were aware by Newspapers & Magazines. This shows that the most effective media as a

    source of awareness is TV Ads followed by Posters & Banners.

    30

  • 7/29/2019 Sip Swapnil

    31/72

    FRITO LAY INDIA.

    Q: Do you keep the following products?

    Data Total %

    Total No. of Hotels 105

    Cadbury

    Chips

    Biscuits

    Coke

    13

    35

    18

    91

    12

    33

    17

    87Table 7.1.3: Availability of impulse products

    Availability of Impulse Products

    17%

    33%

    12%

    87%

    0%

    20%

    40%

    60%

    80%

    100%

    Cadbury Chips Biscuits Coke

    N

    o.ofRespondents

    Graph 7.1.3: Availability of impulse products

    Interpretation:

    The above graph indicates that out of 105 Hotel, 87% hotels have Coke products,

    17% keep Biscuits, 33% respondents have chips and 12% respondents have Cadbury

    products.

    From this we can say that out of the impulse products available in different hotels,

    coke has the highest availability followed by chips and biscuits. Cadbury moves least in

    the hotels.

    Q: Would you like to keep Frito-Lays Products?

    31

  • 7/29/2019 Sip Swapnil

    32/72

    FRITO LAY INDIA.

    Data Total %

    Total No. of Hotels 105YES

    NO

    59

    46

    56

    44Table 7.1.4: Acceptance of Frito-Lays products

    Acceptance of the products

    44% 56%

    YES NO

    Graph 7.1.4: Acceptance of Frito-Lays products

    Interpretation:

    From the above pie chart, we can conclude that 56% of Hotel owners were

    ready to keep Frito Lay products whereas 44% were not interested.

    This shows that in hotels, Frito Lay products have got good acceptance.

    Q: What are the reasons for non-acceptance?

    Data Total %

    32

  • 7/29/2019 Sip Swapnil

    33/72

    FRITO LAY INDIA.

    Total No. of Negative

    Respondents

    46

    MarginEffect on own products sale

    Demand

    Any other

    1710

    11

    8

    3622

    24

    18Table 7.1.5: Reasons for Non Acceptance of Frito-Lays products

    Reasons for Non-Acceptance of Frito-Lay's

    Products

    36%

    22%

    24%

    18%

    M argin Effe ct on Sale De mand Any Othe r

    Graph 7.1.5: Reasons for Non-Acceptance of Frito-Lays products

    Interpretation:

    Above pie chart indicates that respondents who rejected the idea of keeping Frito-

    Lay products had different reasons like Margin problem, Effect on their own products

    sale, Demand and some other reasons.

    Out of that 37% respondents refused due to Margin problem, 22% refused because

    they perceived that it may affect their own products sale, 24% said these products are not

    demanded by customers and 17% respondents had some other reasons like in Bars

    Drinkers dont prefer such kind of products, high price, generally dont keep outside

    products for selling etc.

    DATA ANALYSIS AND INTERPRETATION FOR PETROL

    PUMPS

    33

  • 7/29/2019 Sip Swapnil

    34/72

    FRITO LAY INDIA.

    Q: Are you aware of the following brands?

    Data Total %

    Total No. of Petrol Pumps 34

    Lay

    Kurume

    Cheetos

    Lehar

    32

    27

    2

    95

    80

    6

    0Table 7.2.1: Awareness of brands

    AWARENESS OF BRANDS

    95%

    80%

    6%

    0%

    20%

    40%

    60%

    80%

    100%

    Lay Kurkure Cheetos

    No.O

    fRespondents

    Graph 7.2.1: Awareness of brands

    Interpretation:

    From the above diagram, we can interpret that out of 34 petrol pump owners, 95%

    were very well aware about Lays, 80% were aware about Kurume, 6% were aware about

    Cheetos and no one was aware about Lehar.

    So most aware brands of Frito-Lays on the petrol pumps were:

    1. Lays

    2. Kurume

    Q: How do you know Frito-Lays products?

    Data Total %Total No. of Petrol Pumps 34

    TV Ads 32 95

    34

  • 7/29/2019 Sip Swapnil

    35/72

    FRITO LAY INDIA.

    Posters & Banners

    Newspapers & Magazines

    7

    2

    21

    6Table 7.2.2: Source of Awareness

    Source of Awareness

    21%

    6%

    95%

    0%

    10%

    20%

    30%

    40%50%

    60%

    70%

    80%

    90%

    100%

    TV ADS Posters &

    Banners

    Newspaper &

    Magazines

    No.O

    fRes

    pondents

    Graph 7.2.2: Source of AwarenessInterpretation:

    The above chart depicts that in the petrol pump category, the major source of

    awareness for Frito lay products have been TV Ads i.e. out of 34, 95% respondents were

    aware by TV Ads and 21% respondents were aware by posters & banners and only 6%

    were aware by Newspapers & Magazines. This shows that majority of the products are

    known by TV Ads followed by Posters & banners. Newspapers & Magazines plays a

    minor role in creating awareness about Frito lay products.

    Q: Would you like to keep Frito-Lays products?

    Data Total %

    Total No. of Petrol Pumps 34

    YES

    NO

    22

    12

    65

    35

    35

  • 7/29/2019 Sip Swapnil

    36/72

    FRITO LAY INDIA.

    Table 7.2.3: Acceptance of Frito-Lays products

    Acceptance of the products

    35% 65%

    YES NO

    Graph 7.2.3: Acceptance of Frito-Lays products

    Interpretation:

    From the above pie chart, we can conclude that 65% of Petrol pump owners got

    agreed with the idea of keeping Frito lay products on petrol pumps whereas 35% were not

    interested.

    From this we can say that Frito lay products got accepted on most of the petrol

    pumps.

    Q: What are the reasons for non-acceptance?

    Total No. of visited Petrol Pumps 3

    4

    %

    Total No. of Negative

    Respondents

    1

    2

    Space Problem 6 50

    36

  • 7/29/2019 Sip Swapnil

    37/72

    FRITO LAY INDIA.

    Margin Problem

    Any Other Reason

    3

    3

    25

    25Table 7.2.4: Reasons for Non-Acceptance of Frito-Lays products

    Reasons for non-acceptance of Frito-Lay's Products

    50

    2525

    0

    10

    20

    30

    40

    50

    60

    Space problem Margin problem Any other

    No.O

    fRespondents

    Graph 7.2.4: Reasons for Non-Acceptance of Frito-Lays products

    Interpretation:

    Above pie chart indicates that respondents who rejected the idea of keeping Frito-

    Lay products had different reasons like space problem, margin problem and some other

    problems.

    Out of that 50% respondents refused due to space problem, 25% refused due to

    Margin problem and 25% had some other reasons like: products not demanded by

    customers, high price and generally dont keep such products for selling etc.

    DATA ANALYSIS AND INTERPRETATION FOR

    INSTITUTIONAL CANTEENS

    Q: Are you aware of the following brands?

    Data Total %

    Total No. of Institute 55

    37

  • 7/29/2019 Sip Swapnil

    38/72

    FRITO LAY INDIA.

    Lays

    Cheetos

    Kurume

    Lehar

    49

    16

    40

    5

    89

    29

    72

    9Table 7.3.1: Awareness of brands

    Graph 7.3.1: Awareness of brands

    Interpretation:

    From the above diagram, we can interpret that out of 55 Canteen owners, 89%

    respondents were very well aware about Lays, 72% ere aware about Kurume, 29% were

    aware about Cheetos and 9% were aware about Lehar.

    Q: How do you know Frito-Lay products?

    Data Total %

    Total No. of Canteens 55

    Posters & Banners

    TV Ads

    Newspapers & Magazines

    26

    49

    2

    47

    89

    4Table 7.3.2: Source of Awareness

    38

    AWARENESS OF BRANDS

    89%

    29%

    72%

    9%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    Lays Cheetos Kurkure Lehar

    No.O

    fRespondents

  • 7/29/2019 Sip Swapnil

    39/72

    FRITO LAY INDIA.

    Source of Awareness

    47%

    4%

    89%

    0%

    20%

    40%

    60%

    80%

    100%

    Posters &

    Banners

    TV Ads Newspaper &

    Magazines

    No.ofRespondents

    Graph 7.3.2: Source of Awareness

    Interpretation:

    The above chart depicts that in the Institutional Canteen category, the major source

    of awareness for Frito-Lay products is TV Ads i.e. out of 55, 89% respondents were aware

    by TV Ads followed by Posters & Banners at 47% and then by Newspapers & Magazines

    at 4%.

    This shows that majority of the brands are known by TV Ads followed by Posters

    & Banners. Newspapers & Magazines plays a very minor role in creating awareness.

    Q: Do you keep the following products?

    Data Total %

    Total No. of Canteens 55

    Fast food

    Cadbury

    Biscuits

    Chips

    52

    10

    36

    22

    94

    18

    65

    40Table 7.3.3: Availability of impulse products

    39

  • 7/29/2019 Sip Swapnil

    40/72

    FRITO LAY INDIA.

    Availability of Impulse Products

    94%

    18%

    65%

    40%

    0%

    20%

    40%

    60%

    80%

    100%

    Fast food Cadbury Biscuits ChipsNo.ofRespondents

    Graph 7.3.3: Availability of impulse products

    Interpretation:

    The above graph indicates that out of 55 Institutional canteen owners, 65% canteen

    owners mainly keep Biscuits, 18% keep Cadbury products, 40% have chips category

    products and 94% serves fast food.

    This shows that out of impulse products available in various institutional canteens,

    fast food is mostly available and Cadbury moves least in it.

    Q: Would you like to keep Frito-Lay product?

    Data Total %

    Total No. of Canteens 55

    YES

    NO

    32

    23

    58

    42Table 7.3.4: Acceptance of Frito-Lays products

    40

  • 7/29/2019 Sip Swapnil

    41/72

    FRITO LAY INDIA.

    Acceptance of the products

    58%

    YES NO

    42%

    Graph 7.3.4: Acceptance of Frito-Lays products

    Interpretation:

    From the above pie chart, we can conclude that 58% of Institutional Canteen

    owners were interested in Frito-Lay brands whereas 42% were not interested. So Frito-Lay

    products have good amount of potential in Institutional canteens.

    Q: What are the reasons for non-acceptance?

    Total No. of Institute 5

    5

    %

    Total No. of Negative

    Respondents

    2

    3

    Margin Problem

    Effect on own product sale

    Demand Problem

    8

    4

    3

    35

    17

    13

    41

  • 7/29/2019 Sip Swapnil

    42/72

    FRITO LAY INDIA.

    Any other 8 35Table 7.3.5: Reasons for Non-Acceptance of Frito-Lays products

    Reasons For Non-Acceptance of Frito-Lay's

    Products

    35%

    17%13%

    35%

    Margin Effect on Sale Demand Any Other

    Graph 7.3.5: Reasons for Non-Acceptance of Frito-Lays products

    Interpretation;

    Above pie chart indicates that respondents who rejected the idea of keeping Frito-

    Lay product had different reasons like Margin problem, Effect on their own products sale,

    Demand and some other reasons.Out of that, 35% respondents refused due to Margin problem, 17% refused because

    they perceived that it may affect their own products sale, 13% said these products are not

    demanded by customers and 35% respondents had some other reasons like: high pricing

    and generally dont keep outside products for selling etc.

    Number of interested Institutes:

    Type of Institute No. of Interested Institute %

    SchoolCollegeOfficeHospital

    161024

    5031613

    Table 7.3.6: Distribution of interested institutional canteens

    42

  • 7/29/2019 Sip Swapnil

    43/72

    FRITO LAY INDIA.

    Interested Institute's

    50%

    31%

    6%13%

    School College Office Hospital

    Graph 7.3.6 Distribution of interested institutional canteens

    Interpretation:

    The above pie chart shows that among all the interested institutional canteens,

    Frito-Lay products are mostly demanded by school canteen owners (50%) followed by

    college canteen owners (31%). Office canteens and hospital canteens showed less interest

    towards Frito-Lay products.

    DATA ANALYSIS AND INTERPRETATION FOR MEDICAL

    STORES

    Q: Are you aware of the following brands?

    Data Total %

    Total No. of Medical stores 111

    Lays 111 100

    43

  • 7/29/2019 Sip Swapnil

    44/72

    FRITO LAY INDIA.

    Kurume

    Cheetos

    Lehar

    84

    42

    20

    75

    37

    18Table 7.4.1: Awareness of brands

    Graph 7.4.1: Awareness of brands

    Interpretation:From the above diagram, we can interpret that out of 111 Medical store owners,

    100% respondents were very well aware about Lays, 75% were aware about Kurume, 37%

    were aware about Cheetos and 18% were aware about Lehar.

    Q: How do you know Frito-Lay products?

    Data Total %

    Total No. of Medical stores 111

    Posters & Banners

    TV Ads

    Newspaper & Magazines

    63

    94

    4

    56

    84

    4Table 7.4.2: Source of Awareness

    44

    Awareness of Brands

    100%

    75%

    37%

    18%

    0%

    20%

    40%

    60%

    80%

    100%

    120%

    Lays Kurkure Cheetos Lehar

    No.O

    fResponden

  • 7/29/2019 Sip Swapnil

    45/72

    FRITO LAY INDIA.

    Sorces of Awareness

    56%

    4%

    84%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    Posters &

    Banners

    TV Ads Newspaper &

    Magazines

    No.ofRespondents

    Graph 7.4.2: Source of Awareness

    Interpretation:

    The above chart depicts that in the Medical store, the major source of awareness

    for Frito-Lay products has been TV Ads i.e. out of 111, 56% respondents were aware by

    TV Ads and 84% respondents were aware by Posters & Banners and only 4% were aware

    by Newspapers & Magazines.

    This shows that majority of the brands are known by TV Ads then by Posters &

    Banners. Newspapers & Magazines plays a minor role in creating awareness.

    Q: Do you keep the following products?

    Total No. of Medicals 11

    1

    %

    Cadbury

    Chips

    Biscuits

    Cold Drink

    82

    16

    87

    9

    74

    9

    78

    8Table 7.4.3: Availability of impulse products

    45

  • 7/29/2019 Sip Swapnil

    46/72

    FRITO LAY INDIA.

    Availability of Other Impulse Products

    74%

    9%

    78%

    8%0%

    20%

    40%

    60%

    80%

    100%

    Cadbury Chips Biscuits Cold Drink

    No.ofRespondents

    Graph 7.4.3 Availability of impulse products

    Interpretation:

    The above graph indicates that out of the impulse products available in Medical

    stores, Biscuits and Cadbury has the highest availability. It is observed that chips and cold

    drinks move least in Medical stores.

    Q: would you like to keep Frito-Lays product?

    Data Total %

    Total no. of medical stores 111

    Yes 64 58

    No 47 42Table 7.4.4 Acceptance of Frito-Lays products

    46

  • 7/29/2019 Sip Swapnil

    47/72

    FRITO LAY INDIA.

    Acceptance of the products

    42% 58%

    YES NO

    Graph 7.4.4 Acceptance of Frito-Lays products

    Interpretation:

    From the above pie chart we can conclude that 58% of Medical owners were ready

    to keep Frito-Lays products whereas 42% were not interested. So it is observe that product

    is well accepted in Medical stores.

    Q: What are the reasons for non-acceptance?

    Total no. of Medicals 11

    1

    %

    Total no of negative respondents 47

    Margin problems

    Demand problems

    Space problems

    Any other

    10

    20

    6

    11

    21

    43

    13

    23

    47

  • 7/29/2019 Sip Swapnil

    48/72

    FRITO LAY INDIA.

    Table 7.4.5: Reasons for Non-Acceptance of Frito-Lays products

    Reasons for Non-Acceptance of Frito-Lay's products

    21%

    43%

    13%

    23%

    Margin Demand Space Any Other

    Graph 7.4.5: Reasons for Non-Acceptance of Frito-Lays products

    Interpretation:

    Above pie chart indicates that respondents who rejected the idea of keeping Frito-

    Lays products had different reasons like Margin problem, Space problem, Demand and

    some other reasons.

    Out of that 21% respondents refused due to Margin problem, 13% refused because

    of space problem, 43% said these products are not demanded by customers and 23%

    respondents had some other reasons like: high price and generally dont keep food

    products etc.

    Percentage & Type of Outlets ready to keep the product:

    Types of channels % outlets ready to keep the product

    Hotels 56

    Medicals 58

    Petrol pumps 65

    Canteens 58Table 7.5.1: Percentage Outlets ready to keep the product

    48

  • 7/29/2019 Sip Swapnil

    49/72

    FRITO LAY INDIA.

    Interested Institute's

    56%

    58%

    65%

    58%

    50%

    52%

    54%

    56%

    58%

    60%

    62%

    64%

    66%

    Hotels Medicals Petrol

    pumps

    Canteen

    No.O

    fRespondents

    Graph 7.5.1: Percentage Outlets ready to keep the product

    Interpretation:

    Above graph indicates that out of 105 Hotels 56% hotels were interested, out of

    111 Medical stores 58% were interested, 65%Petrol pumps were interested out of 34

    petrol pumps and out of 55 Institutional canteens 58% were interested.

    So we can conclude that among all the assessed channels of distribution, petrol

    pumps had highest acceptability and Hotels had lowest acceptability towards Frito-Lays

    products.

    Total Sale & Per Outlet Order from the Type of Outlets:

    Types of outlet Total sale % POO (Rs).

    Institutional Canteens 6765 8 845

    Medical Stores 10864 1

    3

    310

    Hotels 52553 6

    2

    1696

    Petrol pumps 14603 1

    7

    1826

    49

  • 7/29/2019 Sip Swapnil

    50/72

    FRITO LAY INDIA.

    Total 84785Table 7.5.2: Total sale &Per Outlet Order

    Interested Institute's and their respective Share

    8%

    13%

    62%

    17%

    Institutional Canteens Medicals Petrol pumps Petrol pumps

    Graph 7.5.2: Interested Institute and Respective share

    Interpretation:

    The above chart depicts that out of the total sales from all the assessed channels of

    distribution, hotels contributed toward 62% of the sales, petrol pumps contributed toward

    17% of total sales, institutional canteens contributed toward 8% of total sales, medical

    stores contributed toward 13% of total sales. This shows that in the process of entering

    into the new channels of distribution, Frito-Lays products were effectively developed in

    hotels followed by petrol pumps, but in medical stores and institutional canteens as they

    were less developed.

    Type of outlet Sample Total tapped

    outlets

    Tapped

    %

    Total

    sale

    POO

    (Rs)

    Institutional

    canteens

    55 8 15 6765 845

    Medical stores 111 35 32 10864 310

    Hotels 105 31 30 52553 1696

    Petrol pumps 34 8 24 14603 1826

    Total 305 82 84785Table 7.5.3: Percentage Outlets Tapped

    50

  • 7/29/2019 Sip Swapnil

    51/72

    FRITO LAY INDIA.

    Type of outlet Universe Remaining

    Outlets

    POO

    (Rs)

    Potential

    outlets

    Potential

    incremental business

    (Rs.)

    Institutional

    canteens

    350 342 845 50 42250

    Medical stores 900 865 310 273 84630

    Hotels 600 569 1696 187 317152

    Petrol pumps 40 32 1826 8 14608

    Total 1890 1808 518 458640Table 7.5.4: Potential Incremental Business

    Effectiveness of Potential Channels

    845

    310

    16961826

    0

    500

    1000

    1500

    2000

    Institutional

    Canteens

    Medical

    Stores

    Hotels Petrol Pumps

    Potential Channels

    Business (in

    Rs.)

    Graph 7.5.3: Effectiveness of Potential Channels

    Interpretation:

    Above chart depicts that among all the potential channels, petrol pumps, showshighest P.O.O. followed by Hotels, Medical stores and Institutional canteens shows the

    51

  • 7/29/2019 Sip Swapnil

    52/72

    FRITO LAY INDIA.

    least P.O.O. compare to them. From this we can estimate potential market and incrementalbusiness for Frito-Lays products in SHIRUR city.

    Type of outlet Universe Sample Total tapped outlets %

    Institutional canteens 350 55 8 2.28

    Medical stores 900 111 35 3.88

    Hotels 600 105 31 5.16

    Petrol pumps 40 34 8 20Table 7.5.5: Percentage Channel Development

    52

  • 7/29/2019 Sip Swapnil

    53/72

    FRITO LAY INDIA.

    Type of Channel & its Percentage dvelopmen

    0

    5

    10

    15

    20

    25

    Institutional

    Canteens

    Medical Stores Hotels Petrol Pumps

    Channel Type

    Percentage

    Graph 7.5.4: Percentage Channel Development

    Interpretation;

    This chart shows that out of the whole universe 2.28% canteens are developed,

    3.88% medical stores are developed, 5.16% hotels are developed and 20% petrol pumpsare developed.

    Channels POO

    1. Traditional channels 1000

    2. Newly developed channels

    a. Petrol pumps 1826

    b. Medical stores 310

    c. Hotels 1696

    d. Institutional canteens 845Table 7.5.6: POO, Traditional Vs Developed

    53

  • 7/29/2019 Sip Swapnil

    54/72

    FRITO LAY INDIA.

    Traditional Vs Newly Developed Channel's Potential

    1000

    1826

    310

    1696

    845

    0

    200

    400

    600

    800

    1000

    1200

    1400

    1600

    1800

    2000

    Channels

    Sales(POO)

    Traditional Channel Petrol Pumps Medical Stores

    Hotels Institutional Channel

    Graph 7.5.5: POO, Traditional Vs Developed

    Interpretation;

    Above chart shows that new channels like petrol pumps and hotels has more POOthen that of traditional channel. So there is so much potential in the new channels that hasstill not acquire. Company has to make strategies in converting these potential channelsinto developed channels.

    LIMITATIONS OF STUDY

    Like any research project, the data collection is based on various sampling

    techniques and sample sizes, which forms the very core of it. These also bring so many

    54

  • 7/29/2019 Sip Swapnil

    55/72

    FRITO LAY INDIA.

    variations and have their own inherent limitations; the above hypotheses have many

    limitations, major ones are as listed below:

    1. The survey was limited to geographical area of SHIRUR city only

    2. Duration for the project was limited to 2 months only

    3. People were reluctant to give complete and correct information.

    And so it is assumed that the information collected from therespondents is correct.

    4. As this project involved assessment and development of new

    channels of distribution like Petrol pumps, Hotels, Institutional

    canteens and Medical stores, it was quite impossible to cover all

    these channels and receive their acceptance in a short duration of

    Two months. So sample size was restricted to a small portion of theuniverse

    FINDINGS:

    The level of awareness was found to be highest for Kurume and Lays amongst the

    product portfolio of Frito-Lays. It was observed from the survey that awareness of

    Cheetos and Lehar was very low.

    55

  • 7/29/2019 Sip Swapnil

    56/72

    FRITO LAY INDIA.

    As far as source of awareness is concerned, major source of awareness for Frito-

    lay product has been TV ads and poster and Banners. Newspaper and Magazines

    plays a manor role in creating awareness about co. products.

    Survey projects the fact that around 58% of the total surveyed Medical stores, 58%

    of the Institutional canteens, 56% of the Hotels and 68% of the Petrol pumps were

    ready to keep Frito-Lays products.

    The respondent who rejects the idea of keeping Frito-Lays products in different

    channels had different reason like margin problem, space problem, demand

    problem and some other reason.

    As far as availability of impulse products is concerned Cadbury and Biscuits are

    mostly available in Medical stores, Coke and Chips are mostly available in Hotels

    and in Canteens fast food and Biscuits are mostly available.

    Out of 105 Hotels 56% showed interest towards Frito-Lays products, out of 111

    Medical stores 58% were interested, 65% Petrol pumps were interested out of 34

    and out of 55 Institutional Canteens 58% of canteens were interested.

    Among all the assessed channels of distribution, petrol pumps had highest

    acceptability and Hotels had lowest acceptability toward Frito-Lays products.

    As far as effectiveness of these potential channels are concerned, Frito-Lays

    products were mainly developed effectively in Hotels and Petrol pumps, following

    by Schools and Medicals where as they were less developed in colleges.

    Among all the interested Institutional canteens, Frito-Lay products are mostly

    demanded by school canteens owners (50%) followed by college canteen owners(31%). It is least demanded in office canteens and Hospital canteens.

    56

  • 7/29/2019 Sip Swapnil

    57/72

    FRITO LAY INDIA.

    Out of the total sales from all the assessed channels of distribution, Hotels

    contributed towards 62% of the total sales, Petrol pumps contributed towards 17%

    of total sales, Medicals contributed towards13% of total sales where as

    Institutional canteens contributed toward 8% of total sales.

    New channels like Petrol pumps and Hotels more POO then that of traditional

    channels.

    Among all the potential channels, Petrol pump shows highest POO followed by

    Hotels. Medical stores and Institutional canteens show the least POO.

    CONCLUSION:

    Lays, Kurume and other products of Frito-lay are of impulsive nature like

    Pepsi, Coke, Biscuits and Cadbury. Hence continuous efforts are required

    outlet, outlets like petrol pump, Medical stores, Hotels etc, need to be well

    developed.

    57

  • 7/29/2019 Sip Swapnil

    58/72

    FRITO LAY INDIA.

    A sales promotion effort of the company has led to the highest awareness of

    Lays, Kurume amongst the people in SHIRUR city.

    Majority of the brands are known by TV ads followed by posters and Banners.

    Newspaper and Magazines play a minor role in creating awareness.

    From the availability of different impulse product in different channels we can

    say that in the impulse products category Frito-lays Company also has potential

    for its products.

    Frito-lays products has good amount of potential in the mention channels of

    distribution.

    The respondent who rejected the idea of keeping Frito-lay products in different

    channels had different reasons like margin problem, space problem, demand

    problem and some other reasons.

    Among all the assessed channels of distribution, Petrol pumps had highest

    acceptability towards Frito-lays products.

    In the process of entering into the new channels of distribution, Frito-lay

    products were effectively developed in Hotels and on Petrol pumps. But

    Average sales for Medical stores and Institutional canteens were very less in

    the beginning.

    Among all the potential channels, Petrol pump has highest POO followed by

    Hotels, Medical stores and Institutional canteens have the least POO compare

    to them. From this we can see that Frito-lays product have more potential in the

    new channels, which has still not acquire.

    As it is seen that newly developed has more average sale then of traditionalchannels, we can say that Frito-lay products have good potential in these new

    58

  • 7/29/2019 Sip Swapnil

    59/72

    FRITO LAY INDIA.

    channels also and can give more incremental business if proper steps

    implemented.

    SUGGESTIONS:

    For developing all the assessed potential channels salespersons should be

    well trained. Different outlets to be visited by a salesman should be well

    defined and information to the salesman in the consideration of the route to

    which it is situated.

    59

  • 7/29/2019 Sip Swapnil

    60/72

    FRITO LAY INDIA.

    This would reduce the repetitive visit to the same outlets, which will

    eliminate the unproductive elements loss of man-hour and most important

    time.

    For the brands like Cheetos and Lehar, all the channels assessed were least

    aware of it so company should promote only Lays and Kurume for first few

    months and then simultaneously make efforts to promote Cheetos and

    Lehar also.

    As it is a non-retailing business, its structures is different than traditional

    channels. So company should make separate distribution pattern for it.

    The visibility factor would be major area of concern for Petrol pumps. So

    company should take maximum benefit of space of Petrol pump to display

    products. It will help the company to attract consumers.

    As impulse products like Coke, Biscuits and Cadbury are mainly available

    in these channels company has got potential to promote their brands in

    these outlets.

    Company should not go for adding more flavors as have already enough

    no. of flavors this will avoid confusion

    REFERENCES

    1. Marketing Management, by Philip Kilter, the Millennium Edition, Prentice

    Hall Publication.

    60

  • 7/29/2019 Sip Swapnil

    61/72

    FRITO LAY INDIA.

    2. Marketing Management, by Ramaswamy & Namakumari, Third Edition,

    McMillan Business Books.

    3. Marketing Research, by Luck & Rubin.

    4. Research Methodology, Methods and Techniques, Second Edition, Wishwa

    Prakashan.

    5. David A. Aaker, V. Kumar, George S. Day, Marketing Research,

    Seventh Edition, 2002, John Wiley and Sons Inc.

    6. www.frito-lays.com

    7. www.pepsico.com

    ANNEXURE

    SALES REPORT OF NEWLY DEVELOPED CHANNELS

    S. N. PETROL PUMPS SALES (Rs.)

    1 ARKAY 3910

    61

    http://www.frito-lays.com/http://www.pepsico.com/http://www.frito-lays.com/http://www.pepsico.com/
  • 7/29/2019 Sip Swapnil

    62/72

    FRITO LAY INDIA.

    2 VINOD 26563 MANGAL GARDEN 18594 PRAKASH 1770

    5 BOOB SERVICES 17526 PALIJA 12397 DECCAN 11518 GOVIND 266

    Total 14603

    SR NO MEDICAL STORES SALES (Rs.)

    1 ABJINAV MEDICAL 4432 JAGDISH 285

    3 OM MEDICAL 4584 PARAS 265.85 SAHAYADRI 3546 SHIRISH 4437 SHREE SEVA 3548 SHREE KRIPA 3189 KRISHNAI 265.510 SHREE RANG 88.511 AMOL RAJ 332.512 SAMARTH 23013 CHANDAN 35414 SHEETAL 31915 ATHARV 42516 VINAYAK 265.517 BHAKTI 23018 RAJ MEDICAL 22519 SANJIVAN 265.520 K.S.MEDICAL 31921 SANDESH 365.522 YOGESHWAR 35423 SAFALYA 88.52

    24 AKSHATA 332.2525 MANISH MEDICAL 225.526 GODAWARI 386.2527 PANKAJ 232.3628 SHUBHAM 17819 NEW SURAJ 513.7830 VISHAL 318.9631 TULJAI 88.532 GAJANAN 88.533 TRIMURTI 178

    34 SAMARTH 265.535 SHREE MEDICALS 708Total 10864.08

    62

  • 7/29/2019 Sip Swapnil

    63/72

    FRITO LAY INDIA.

    SR NO INSTITUTIONAL CANTEENS SALES (Rs.)1 DR MOONJE 23022 DEV COLLEGE CANTEEN 10453 BOYS TOWN 8864 AJINKYA 7085 SYMBOISIS S S GEN 7086 R.P.(GUJ MAH MAN) 4437 ST FRANCIS 4438 DESAI CANTEEN 230

    Total 6765

    SR NO HOTELS SALES (Rs.)

    1 SAHYADRI 40612 SAI ARADHAANA 32033 TAPASVI 31864 PRAKASH 26565 MATRUPRASAD 21246 PADMALAXMI 19477 KALRAJ 19478 KUSUMRAJ 15949 CHANDRALOK 159310 SHIVGANGA CLASSIC 141611 NANDANVAN 141612 SAHIBA 141613 KINARA 138214 MAZDA 115115 RAHI 88616 S.T.CANTEEN 88617 GARVA PATHRDI 88518 AMBIKA 82419 ASWAD 686

    20 PRAKASH BAKERY 66621 SANTOSH CAF 58022 SHYAMSUNDAR 53123 MAZDA CAKE SHOP 51424 TARNE TEA STALL 42525 MADHAV SNACKS 35426 ANNAPURNA 33227 PANCHAVATI YATRI 26628 PANCHAVATI ELITE 26629 WELCOME 26530 ANAND TEA HOUSE 22631 RAJAN TEA POINT 234

    Total 52553

    63

  • 7/29/2019 Sip Swapnil

    64/72

    FRITO LAY INDIA.

    QUESTIONNAIRE FOR INSTITUTIONAL CANTEENS

    64

  • 7/29/2019 Sip Swapnil

    65/72

    FRITO LAY INDIA.

    Name of institute:- _____________________________________________

    Address:-____________________________________________________

    Kind of institute:-a) School b) College

    c) Office d) Hospital

    Name of the canteen owner:-____________________________________

    Q: Are you aware of our following brands?

    Lays Kurkure

    Cheetos Lehar

    Q: How do you know our products?TV ads

    Magazines

    News papers

    Posters and banners

    Other

    Q: Do you keep the following products?

    Cadbury

    65

  • 7/29/2019 Sip Swapnil

    66/72

    FRITO LAY INDIA.

    Chips

    Fast food

    Biscuits

    Q: Would you like to keep our product?

    Yes

    No

    Q: If no, for what reason?

    Margin

    Scheme

    Effect on own product

    Other

    QUESTIONNAIRE FOR HOTELS

    66

  • 7/29/2019 Sip Swapnil

    67/72

    FRITO LAY INDIA.

    Name of hotel:-_______________________________________________

    Owners name:- ______________________________________________

    Phone No:-____________

    Address:-____________________________________________________

    Type of hotel:-

    Restaurant

    Restaurant & bar

    Lodging

    Q: Are you aware of our following brands?

    Lays Kurkure

    Cheetos Lehar

    Q: How do you know our products?

    67

  • 7/29/2019 Sip Swapnil

    68/72

    FRITO LAY INDIA.

    TV ads

    Magazines

    News papers

    Posters and banners

    Other

    Q: Do you keep the following products?

    Cadbury Cold Drink

    Chips Biscuits

    Q: Would you like to keep our product?

    Yes

    No

    Q: If no, for what reason?

    Margin

    Scheme

    Effect on own product

    Other

    QUESTIONNAIRE FOR MEDICAL STORES

    68

  • 7/29/2019 Sip Swapnil

    69/72

    FRITO LAY INDIA.

    Name of Medical store:-_________________________________________

    Owners name:-_______________________________________________

    Phone No:-____________

    Address:-____________________________________________________

    Q: Are you aware of our following brands?

    Lays Kurkure

    Cheetos Lehar

    Q: How do you know our products?

    TV ads

    Magazines

    Newspapers

    Posters and banners

    Other

    Q: Do you keep the following products?

    69

  • 7/29/2019 Sip Swapnil

    70/72

    FRITO LAY INDIA.

    Cadbury

    Chips

    Cold Drink

    Biscuits

    Q: Would you like to keep our product?

    Yes

    No

    Q: If no, for what reason?

    Margin

    Scheme

    Effect on own product

    Other

    QUESTIONNAIRE FOR PETROL PUMPS

    70

  • 7/29/2019 Sip Swapnil

    71/72

    FRITO LAY INDIA.

    Name of Petrol pump:-__________________________________________

    Owners name:--______________________________________________

    Phone No:-____________

    Address:-____________________________________________________

    Q: Do you provide following facilities on your petrol pump?

    Coffee/Cold drink vending machine

    Attached Dept. store

    Fast food/Packed snacks consumption center

    Q: If Dept. store is attached, do you keep the following products?

    Cadbury Chips

    Fast food Biscuits

    Q: are you aware of our following brands?

    Lays Kurkure

    Cheetos Lehar

    Q: How do you know our products?

    71

  • 7/29/2019 Sip Swapnil

    72/72

    FRITO LAY INDIA.

    TV ads

    Magazines

    News papers

    Posters and banners

    Other

    Q: Would you like to keep our product in the mean while customer waits to refuel

    the petrol?

    Yes

    No

    Q: What would make you happy to go for Frito Lays product?

    Branded display rack

    Special discount scheme

    More margins

    Other

    Interested Institute's

    56%

    58%

    65%

    58%

    66%

    No.O

    fRespondents


Recommended