A PROJECT REPORT ONBUSINESS GROWTH STRATEGY
“ACE KLUB PROGRAM”
NISHANT SINGH(128938)
MBA II YEAR
CONTENTS
• COMPANY INTRODUCTION
• MARKET SHARE
• MARKET STRATEGY
• MARKET SEGMENTATION
• ACE KLUB PROGRAM
• DIRECT AREA COVERAGE
Started in 1892 with initial investment of Rs 275(Britannia Biscuit Company Limited)
Mechanized operation in 1921
1975,took over distribution from Parry’s (Britannia Industries Limited)
90 % of Britannia revenue come from Biscuit
Managing Director Mr. Varun Berry
Britannia Biscuits
Glucose
Cream
Cookies
Health Digestive
Tiger
Treat
Bourborn
Good Day
Pure Magic
Nutri Choice
Marie
MARKETING OF BISCUIT
Wholesale and Retail marketing in the Biscuit industry is carried out with a network of Dealers / Wholesalers and Retail shops
Market share data for Indian biscuit industry:Here are market share data for biscuit industry from report s available at IBMA( Indian Biscuit Manufacturers Association)
Major Market Share Holders – Organized Sector
% OF MARKET SHARE BRAND WISE (VOLUME)
PARLE
BRITANNIE
PRIYA GOLD
ITC
REST
INDUSTRY SHARE
BRITANNIA 40%
PARLE 38%
PRIYA GOLD 15%
ITC 11%
REST 6%
Category Britannia Parle Leader
Glucose Tiger Parle-G Parle –G
Marie Marie Gold Parle Marie Marie Gold
Salty snacks 50-50 Krack Jack Krack jack
Choco chips Good day Hide n seek Good day
Milk Milk bikis Milk sakti Milk bikis
Bourbon Bourbon Hide n seek Bourbon
Nice Nice ----------------- Britannia Nice
Multi grain Nutri choice ------------------- Nutri choice
Cream Cream Treat Kreams Cream treats
Cookie Good day 20-20 Good day
IMPORTANT BRANDS PITCHED AGAINST EACH OTHER OR PRODUCT COMPARISION
So the battle for market share continues and advantage is for consumers who will get better product from both these biscuit majors
Market Share - Sector wise Market share penetration-Population wise
ORGANISEDSECTOR
UNORGANISEDSECTOR
70% 30%
Market Share – product wise
Marie and Glucose 50%
sweet, crackers , cream ,milk
50%
Market share - Region wise:Market share of the industry in India as per region
ZONE % CONTRIBUTION
NORTH ZONE 25%
WEST ZONE 23%
EAST ZONE 28%
SOUTH ZONE 24%
URBAN RURAL
85%-75% 65%-55%
Annual Production
0
5
10
15
20
25
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
PRODUCTION (In lakh metric tonnes)
14.2916.14
17.4418.25 19.1
MARKET SEGMENTATION
NICHE -
BEHAVIORAL -Benefits User
Status
Usage
Rate
DEMOGRAPHIC -Age Income
Target Markets
REGIONAL SALES
MANAGER
SALES AND OPERATION MANAGER
AREA SALES MANAGER
TERRITORY SALES
INCHARGE (4-5)
SALESMEN (10-12)
AREA SALES MANAGER
TERRRITORY SALES
INCHARGE (4 –5)
SALESMEN (10-12)
SALES TEAM STRUCTURE
SALES AND DISTRIBUTION STRUCTURE
SYSTEMS TO BE FOLLOWED AT BRITANNIA
AW PLAN
PJR (PRE JOURNEY PLAN)
UDDAN
UDDAN SOFTWARE
Three areas to consider
1
2
3
BIL FOCUSVALUE
TARGET
VISIBILITY IMPACT
CLASSIC(15K-30K)
PLATINUM(30K-59K)
TITANIUM(59K>)
Visibility
ImpactRs 500/- Rs 1000/- Rs1500/-
BIL Focus .5 % 1.0 % 1.0 %
Value Target 1.0 % 1.5 % 1.5 %
OBJECTIVES
• Provide daily report
• To analyze the various parameters which play important role and affect the program
To identify that whether merchandiser visit to respective outlets as
per their schedule or not
To ensure that retailers got their payouts on time.
To examine the condition of Window display ( with regards to total
number of lines as well as visual appearance)
To make aware the retailers about PROGRAM if they don’t know
.
To search new areas which are still not identify by the company.
To solve out the problems arises by retailers and discuss it with distributers.
SOURCES OF DATA
Primary
Secondary
SAMPLE SIZE
100 respondents
SAMPLING TOOLS
Questionnaire
Personal Interview
Target Awareness
84%
16%Target awareness
Mandatory for the retailers to keep the target sheet
Awareness about the monthly target
Based on previous month achievements.
Necessary to fulfill the parameters of ACE program
Trained sales man on regular basis
Giving order randomly
Payout Details
82 %
18 %got payout
Did not get payout
Must full fill all 3 parameters
Payment adjusted in next bill rather than in cash
Maximum of the retailers were not satisfied.
Reimbursement on quarterly basis
Full filled value target
Window Display
0
10
20
30
40
50
60
70
80
Attractive window display Poor window
73 %
27 %
Focus brand of the quarter
Number of facings, placement on shelf and
the nature of shelf itself is equally important.
To compete with ITC farmlite.
Role Of Merchandiser
0
20
40
60
80
Visit as per schedule
Not any specific time
68 %
32 %
Ensuring that products appear in the right store, atthe appropriate time and in the correct quantities.
Maintaining window, arrange showcases,
counters and display fixture on a day-to-
day basis
visit next day after salesman deliver products
Feedback form with each retailers
Previous Month Target Achievement
0 20 40 60 80
Target Achieved
Target not Achieved
72 %
28 %
Target Achieved
Target not Achieved
Maximum have problem with target
Fixed according to previous performance
Lack of awareness is major reason
Company issue two forms
DIRECT COVERAGE EXPANSION
PLACEMENT OF DAIRY PRODUCTS
Higher cost in comparison to other
Scope is good because of BRAND name
SUGGESTIONS
The clause of the ACE KLUB should be made clearer to the retailers,
since few of them aren’t aware of them
The merchandizer should be able to convince the retailers to maintain
the window display and not let other brands to be displayed in this
window
Company should reimburse payouts in cash rather than adjust in bill.
A daily attendance record to be maintained for salesman at the AW point
regarding total number of outlets covered on that day because sometimes
salesman don’t bother to go to market instead take order on the mobile
Tracking should be undertaken for retail outlets also. This would help to ascertain outlets where are
stocks are not moving and also help to understand the stock trends for particular routes.
Perform a detail demand survey at regular interval to know about
the unique needs and requirements of the retailers.
The company should make hindrance free arrangement for its
customers/retailers to make any feedback or suggestions as and
when they feel.
A strong watch should be kept on distributors so that the goodwill
of the BRAND doesn’t get affected
Some new areas discovered were too huge, so the distributor can
make a whole new beat for this area.
The salesmen can be given extra training on customer relation
skills. This will enable them to win trust of the new retailers and
make them regular company customers.
At some points the distributors were not willing to add the new area
under their beats. For this company can give better incentives to
them and make them aware about various benefits
At a few distributor points, there is a shortage of vehicle for ready
stock, this delays the supply, and for this the company can make a
mandate to the distributors to maintain certain number of
permanent vehicles for supply.
The company can give free merchandizing to these outlets.
Retailers always seek for profit making deal from thecompany. That’s why company can’t force retailers to keeptheir product only. Carrying out relevant sales promotionalactivities can increase biscuits demands and thus increasein sales. An attempt made by Britannia to increase theirbusiness and sales by ACE KLUB PROGRAM justify thegoal of the company in business growth. This study hashelped to gain good experience and more informationabout the various attribute which support the program.
CONCLUSION
REFRENCES
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April 2014]
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