Professional Documents
Culture Documents
ON
MARKETING STRATEGIES
OF
BRITANNIA INDUSTRY
SUBMITTED TO
SESSION: 2009-20012
Chanderprabhu Jain Collage OF Higher Studies & School of Law.
Towards Excellence Everyday
(Affiliated to G.G.S, Indraprastha University, Delhi)
h
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r
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III
year,
MAHARAJA
SURAJMAL
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r
ACKNOWLEDGEMENT
AMIT RAWAT
(BBA III YEAR )
EXECUTIVE SUMMARY
The bread and biscuits constitutes the largest segments of consumer foods in India.
Both Biscuits and Bread are items of mass consumption in our Country. Almost 2
million tons of biscuits are produced in India each year and consumption is growing
at 10-12 per cent annually. The per capita consumption of biscuits in the country is
about 1.52 kg annually. Contrary to popular belief that biscuits are consumed by the
middle and high income groups, it is actually the only nutritious and hygienic food
product for children, lower income groups and the rural population. Nearly 50 per
cent of biscuits produced are consumed in rural areas and 30 per cent by income
groups earning below Rs 750 per month. Every 100 gm of glucose biscuits roughly
provides 20 per cent of energy, protein and calcium required by an average adult.
TABLE OF CONTENTS
S.No
1.
Topic
INTRODUCTION
Page. No.
RESEARCH METHODOLOGY
2.1Data sources
2.2 Research objectives
2.3 Questionnaire design / formation
2.4 Sample design /sample element / unit
2.5 Extent
2.6 Time frame
2.7 Sampling frame
2.8 Limitations of research
COMPANY PROFILE
3.1Five Force Model For Britannia
3.2 Britannia Supply Chain
3.3 Major Consumer Promotional Tools
3.4 S.W.O.T Analysis
4
5
6
7
8
CHAPTER - I
INTRODUCTION
INTRODUCTION
1.1 About the Industry:BISCUIT INDUSTRY IN INDIA - AN OVERVIEW:Biscuit industry in India in the organized sector produces
around 60% of the total production, the balance 40% being contributed by the
unorganized bakeries. The industry consists of two large scale manufacturers,
around 50 medium scale brands and small scale units ranging up to 2500 units in
the country, as at 2000-01. The unorganized sector is estimated to have
approximately 30,000 small & tiny bakeries across the country.
The annual turnover of the organized sector of the biscuit manufacturers (as at
2001-02) is Rs. 4,350 crores.
Biscuit industry which was till then reserved in the SSI Sector, was unreserved in
1997-98, in accordance with the Govt Policy, based on the recommendations of
the Abid Hussain Committee.
The annual production of biscuit in the organized sector, continues to be
predominantly in the small and medium sale sector before and after dereservation. The annual production was around 7.4 Lakh tonnes in 1997-98 In the
next five years, biscuit production witnessed an annual growth of 10% to 12%,
up to 1999-00.
The annual Growth showed a decline of 3.5% in 2000-01, mainly due to 100%
hike in Central Excise Duty (from 9% to 16%). Production in the year 2001-02
increased very marginally by 2.75% where in 2002-03 the growth is around 3%.
The Union Budget for 2003-04 granted 50% reduction in the rate of Excise Duty
on Biscuit i.e. from 16% to 8%. The Federation's estimate for the current year
indicates a growth of approximately 8% to 9%.
However the average utilization of installed capacity by biscuit manufacturers in
the country has been a dismal 60% over the last decade up to 2001-02.
Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogs SmithKline
Beecham, Heinz etc entering the biscuit industry in India, most of them, with the
exception of SmithKline Beecham (Horlicks Biscuits), have ceased production in
the country.
7
On the other hand, import of biscuits, specially in the high price segment has
started from 1998-99, but however, the quantum of imports has not so far
increased alarmingly and has remained at around 3.75% of the consumption of
biscuits in the country in the year 2001-02. However, recent imports from china
industries cheaper verities of biscuit, needs to be examined with cautions,
especially in the context of the price as the low margin based domestic industry,
which is operating at 60 % of the total installed capital. Exports of biscuits from
India has been to the extent of 5.5% of the total production. Export are expected
to grow only in the year 2003-04 and beyond.
As regards the consumption pattern is concerned. surveys and estimates by
industry from time to time indicate the average consumption scenario in the four
Zones have been more or less close to each other, as below:
Northern States: 28%
Southern States: 24%
Western States: 25%
Eastern States: 23%
Though India is considered as the third largest producer of Biscuits after USA
and China, the per capita consumption of biscuits in our country is only 2.1 Kg.,
compared to more than 10 kg in the USA, UK and West European countries and
above 4.25 kg in south cast Asian countries, Le. Singapore, Hong Kong,
Thailand, Indonesia etc. China has a per capita consumption of 1.90 kg, while in
the case of Japan it is estimated at 7.5 kg.
local area tax, mandi taxes, purchase tax, octroi etc etc, has been a major
deterrent in the growth of the biscuit industry. The CII Study Report has
identified Biscuit as one of the products that should treated as "Merit Good for
the purpose of liberal tax policy both by the Centre and States.
Besides lack of technology upgradation in manufacturing, packaging etc has also
been a factor affecting our industry, along with inadequate financial credit and
support particularly for the medium and small scale biscuit units.
On the other hand, the Government of India has identified food processing
industries as a priority area to be encouraged for growth and development and
created the Ministry of Food Processing Industries (which was till then a Dept in
the Ministry of Agriculture), headed by an Ministry of State with Independent
charge.
The Food Processing Ministry has been rendering yeomen service to the industry,
of which biscuit manufacturing is an important part. The Ministry, with the
objective of enabling food processing Industries to undertake technology
upgradation diversification. expansion as also to set up new units has formulated
scheme of Grants and Financial Assistance. At the persistent instance of industry
organizations including FBMI the Ministry of FPI took the initiative in evolving
an Integrated Food Act, harmonizing the existing multifarious legislations
enabling better compliance. The Draft Unifled Food Bill 2002 has been prepared
and now awaits approval by the Cabinet and the Parliament, which will fulfill an
important need of the industry and pave way for accelerated development and
growth.
1. Brand Name: GoodDay and Marrie from Britannia are stable and are the most
established brand in biscuit segment being equated for biscuits for long time. Now the
brand has taken a dent though among the present generation with competitors coming
up with more powerful advertising campaigns and offering more variety.
2. Styling & Packaging: Britannia offerings have the innovative designs and
packaging as compared to what is offered by the competitors. As it's a variety
seeking product the styling and packaging helps in getting more customers.
3. Quality: Britannia name is associated with quality. The offerings from Britannia
are of best quality when it comes to taste and hygiene. Under it's mission
statement "eat healthy think better"
Minister seeking relief in the Excise Duty on biscuits, giving biscuit special treatment
that it deserves on account of the exceptional nature and sensitivity to price increase.
The Federation submitted its Pre- Budget Memorandum for 2002 demanding at least
50% Excise Relief.
It is a matter of great satisfaction that the Govt. has, after 3 years, acceded to our
demand and grated reduction in Excise Duty (from 16% to 18%) in the Union Budget
for 2003-2004.
12
CHAPTER - II
RESEARCH METHODOLOGY
13
2.RESEARCH METHODOLOGY
2.1. Data sources
To determine the appropriate data for research mainly two kinds of data was
collected namely primary & secondary data as explained below:
Questionnaire
Informal Interviews
Observation
Text Books
Articles
Journals
Websites
14
MAJOR OBJECTIVE
MINOR OBJECTIVES
To take feedback and analyze the level of satisfaction amongst the customers
in respect of marketing activities and suggest alternatives.
2.5 Extent
Where the survey should be carried out?
15
I have covered entire residential area of Delhi city for the survey
Time frame
when the survey should be conducted?
I conducted my survey for 8weeks from 14 may to 13h July
2.6
Sampling frame
The main statistical tools used for the collection and analysis of data in this
project are:
Questionnaire
Pie Charts
Tables
2.7Limitations of research
The following are the limitations of the study:
The sample size was small and hence the results can have a degree of
variation.
16
CHAPTER III
COMPANY PROFILE
17
COMPANY PROFILE
The story of one of India's favorite brands reads almost like a fairy tale. Once
upon a time, in 1892 to be precise, a biscuit company was started in a nondescript
house in Calcutta (now Kolkata) with an initial investment of Rs. 295. The
company we all know as Britannia today. By 1910, with the advent of electricity,
Britannia mechanised its operations, and in 1921, it became the first company
east of the Suez Canal to use imported gas ovens. Britannia's business was
flourishing. But, more importantly, Britannia was acquiring a reputation for
quality and value. As a result, during the tragic World War II, the Government
reposed its trust in Britannia by contracting it to supply large quantities of
"service biscuits" to the armed forces.
Today, more than a century after those tentative first steps, Britannia's fairy tale is
not only going strong but blazing new standards, and that miniscule initial
investment has grown by leaps and bounds to crores of rupees in wealth for
Britannia's shareholders. The company's offerings are spread across the spectrum
with products ranging from the healthy and economical Tiger biscuits to the more
lifestyle-oriented Milkman Cheese. Having succeeded in garnering the trust of
almost one-third of India's one billion population and a strong management at the
helm means Britannia will continue to dream big on its path of innovation and
quality. And millions of consumers will savour the results, happily ever after.
Mission:
The Indian population today is over 1 billion. Of these, economic data suggests
that one third can afford products in the price range that we operate i.e. Re. 1 in
case of Tiger Tikki to Rs. 120/- in case of the 1kg Milkman Dairy Whitner.
The company has to constantly endeavor to capture the entire market of this
target population. The key to success is once again through very high levels of
commitment to the roles and the goals of the organization. The company needs to
constantly strive to excite the consumer through whatever they do.
Vision:
To Dominate the Food and Beverage Industry and Triple Turnover and Operating
Income.
The vision states that the company not only needs to lead but to dominate the
industry. This implies that the company needs to be the preferred choice of the
consumer in every product category that it operates in. The preference of
consumers will come through excellent products and excellent service to the
trade and to the end consumer
Values :
The Britannia values are those guidelines that help the company to add value to
the life of the consumer.
Horizontal Empowerment
Business Efficiency for Healthy
Laddering Energize your Body and Mind.
Business Structure :
19
This figure describes the Britannias overall Business structure in all the four
major regions of the Country. This describes how the four zones are connected to
each other.
20
RELATIVE MARKET
SHARE
LOW
HIGH
The BCG growth-share matrix shows that Britannia is a STAR BCG, being a
market leader in a high growth market
21
COMPETITORS FORCE
SUPPLIERS FORCE
(Very large number less
of bargaining power
BRITANNIA
PARLE
BAKEMANS
REGIONAL
SUBSTITUTES FORCES
Household snacks
Bakery biscuits
Fast food
22
BUYERS FORCES
buy goods from Company and from them the Stock goes to the Retailers.
Retailers sell Company Products to the End Consumers.
The Sale of the Stock from Depots to Authorized Wholesaler constitute Primary
Sale while the Sale of the Stock from Authorized Wholesaler to Wholesaler
constitute Secondary Sale.
Different rural markets have different set of Superstockists (SS) which further
have RPDs (Rural preferred Dealers) and UPDs (Urban preferred Dealers)
under them. These UPDs are the dealers of very small regions only which are
considered rural only and are not completely urban.
Sales Promotion
Sales promotion, a key ingredient in marketing campaigns, consists of a diverse
collection of incentive tools, mostly short term, designed to stimulate quicker or
greater purchase of particular products or services by consumers or the trade."
In marketing, sales promotion is one of the four aspects of promotion. (The other
three parts of the promotional mix are advertising, personal selling, and
publicity/public relations.) Sales promotions are non-personal promotional efforts
that are designed to have an immediate impact on sales. Sales promotion is media
and non-media marketing communications employed for a pre-determined,
limited time to increase consumer demand, stimulate market demand or improve
product availability. Examples include:
coupons
discounts and sales
contests
point of purchase displays
rebates
free samples (in the case of food items) .
24
25
A pull strategy attempts to get consumers to "pull" the product from the
manufacturer through the marketing channel. The company focuses its marketing
communications efforts on consumers in the hope that it stimulates interest and
demand for the product at the end-user level. This strategy is often employed if
distributors are reluctant to carry a product because it gets as many consumers as
possible to go to retail outlets and request the product, thus pulling it through the
channel. Consumer-promotion objectives are to entice consumers to try a new
product, lure customers away from competitors products, get consumers to "load
up" on a mature product, hold & reward loyal customers, and build consumer
relationships. Typical tactics employed in pull strategy are: samples, coupons,
cash
refunds
and
rebates,
premiums,
26
advertising
specialties,
loyalty
3.4
SWOT ANALYSIS
27
STRENGTHS
High brand equity; consumers and dealers of mass market brand regards
Britannia as a
WEAKNESSES
The Company takes a lot of time in handling the UCA claims of the
authorized wholesalers; this !eads to demotivation
Warehousing norms are not followed, which accounts for high breakage
The semi-sweet category accounts for the maximum turnover in the mass
market- the Tiger Anytime being a member of this category is perceived as a tow
quality product; this may liquidate Britannia's brand equity in the mass market
Britannia has positioned it's Tiger range on health and taste, but my findings
show that health consciousness in the mass market is low, which means that the
brand is under-positioned, since the market doesn't consider "health1 as an
important benefit in biscuits
Britannia's strength is in mid, premium mid super-premium category; this
market is approaching a saturation point .
OPPORTUNITIES
Mass market is growing with established preference for biscuits
Growing middle class in India can provide more opportunities for Britannia's
pillar brands
28
Credit given to dealers will help Britannia in expanding the width of reach, by
which the company will have a volume advantage
Taste plays an important role in mass market which can take care of price
sensitivity to some extent
There is low differentiation in the mass market brands
There is a fairly good market for a high count salty cracker variety and a
cream cracker variety in the mass market
THREATS
De-reservation of the biscuit industry may attract foreign players who initially
will try to attack the premium segment, which is already established for Britannia
A characteristic feature of premium market consumer is that this segment is
not brand loyal; therefore there is a chance of the consumers to shift to other
brands in the near/distant future
Too much concentration in the mass market may affect the companies market
in this established segment
Mass-market venture may account for this cannibalization
A large number of competitors each having respective bold in different
markets of the company's pillar brands will account for high contribution/orrir
29
COMPETITIVE ANALYSIS:
Britannia is the leader in the biscuit industry and is, therefore, the main competitor is
Parle. Intense competition exists between Parle and Britannia, manifesting itself in
the form of heavy advertising and new product launches. Parle has alleged in the past
that Britannia has copied its biscuit brands, namely Monaco, Parle G and Krackjack
and come up with similar products- Snax, Tiger and Fifty-Fifty respectively.
With its bold Mission Statement - "Every third Indian must be a Britannia
consumer by the year 2003", Britannia undertook major brand repositioning efforts
and launched major marketing campaign with a new Corporate Identity, "Eat Healthy,
Think Better", Positioning the company's products as a source for healthy food. This
is an important Strategy for promoting consumption of snack foods, which many
families do not associate with nutrition. Biscuits under the umbrella brand Nutri,
positioned on the nutrition platform have been launched recently..
Britannia followed this brand repositioning with heavy advertising, heavy promotions
(such as the famous 1999 promotion campaign - "Britannia khao World cup jao")
and entry into new markets under this new-found corporate identity. Britannia also
aims for the top spot in the dairy products industry and to that end they have entered
into a JV with New Zealand based Fontera Group. *
Britannia's target segment spans across all geographic regions and age levels, and the
company would also like it to span across all income groups. In actual
implementation, constraints such as the distribution network have not permitted the
company to make inroads in the rural segment and Britannia has had only a moderate
success in grabbing share from the unorganized sector.
However, Britannia has been expanding its distribution reach and plans to double its
network in the rural markets. Retail reach is expected to increase from the current
0.4mn outlets to 0.8mn retail outlets in the next two years. Britannia has the definite
advantage of size. It has SBUs encompassing a whole range of products i.e. biscuits,
bread, cakes, dairy products etc. The sheer scale of business that Britannia manages
30
and the returns achieved gives Britannia the scope for large scale brand promotion
which Parle and Priyagold cannot replicate.
Britannia's target segment is getting more knowledgeable, fashionable and busy
every day. Yet, a substantial part of the market remains price conscious. Britannia,
seeing the opportunity emerging from the changes in consumer lifestyle, has
followed aggressive marketing tactics focusing on both appeal and attractiveness of
packaged biscuits. In order to target the mass market, Britannia has also launched
lower end biscuits and small, low-priced packages.
The corporate Britannia brand has also been perceived as a premium biscuit brand in
spite of the company's efforts to reposition it for the mass market and thereby
achieve volumes and penetration. With attractive packaging, low pricing, and heavy
advertising,Britannia has achieved tremendous success in a short span of time with
the Tiger brand (Its answer to Parle-G). Tiger Cashew and Tiger Glucose
cumulatively achieved an estimated annual sale of close to Rs1.5bn and has garnered
20-25% market share in the glucose biscuit segment.
Though the Tiger brand is extremely popular in the mass market, the association of
this product with the corporate brand name is low. There haven't been other success
stories for Britannia in the mass market, and the brand is largely perceived as a
premium packaged 'biscuits brand.
Britannia also concentrated on its core biscuit brands such as Marie, Thin Arrowroot,
and Milk Bikis - which were facing competition from similarly-branded alternatives.
To stay ahead of the pack, Britannia differentiated its brands by not only bringing
them under the 'eat healthy, think better1 banner, but also gave them clearly defined
positioning. Milk Bikis Funland was made in animal shapes. Marie was rechristened
Marie Gold, and positioned as a tea-time biscuit.
31
The ITC has also entered the bakery business and launched there product
under brand SUNFEAST the brand has been positioned as enriched with
nutritional values. They have promoting by using it as a tool for social
responsibility.
1. Analysis of 3Ps
Marketing decisions generally fall into following four controllable categories:
Product
Price
Place
Promotion
Though marketing mix covers product planning, pricing, personal selling,
advertising, distribution channels, branding, packaging, servicing etc the report will
be concentrating on product , price mix and promotions
Products
The major products offered by Britannia industries are the following:
Biscuits Good day, marie, marie vita , milk bikies , cream treat, little hearts ,nice,
cream crackers ,time pass, tiger, tiger mast cream, 50:50, 50:50 maska chaska and
many more
1. Brand Name: GoodDay and Marrie from Britannia are stable and are the most
established brand in biscuit segment being equated for biscuits for long time. Now the
brand has taken a dent though among the present generation with competitors coming
up with more powerful advertising campaigns and offering more variety.
2. Styling & Packaging: Britannia offerings have the innovative designs and
packaging as compared to what is offered by the competitors. As it's a variety
seeking product the styling and packaging helps in getting more customers.
32
3. Quality: Britannia name is associated with quality. The offerings from Britannia
are of best quality when it comes to taste and hygiene. Under it's mission
statement "eat healthy think better"
Pricing
1. Pricing Strategy: The category shows an elastic demand. High-Demand and
pricing from competitor are the governing criteria in determining the price. As the
target market is masses. The prices of its products are comparatively higher than
its competitor Parle and Priyagold.
2. Bundling: Britannia has taken lead in providing more attractive price sensitive
options but Parle products offering come in many volume packages
3. Discounts: Volume discounts, wholesale pricing margins offerings and almost
same throughout the organized biscuit sector. But Priyagold gives bit higher
margin rates
4. Promotional Pricing: Promotional pricing campaign was done when Britannia
wanted to get hold of cream treat segment.
Promotions
Since the World Cup Cricket match in 1999, the biscuit major has been launching
aggressive television campaigns featuring leading cricket stars like Sourav
Ganguly and Rahul Dravid in a bid to promote its various brands.
BIL has zeroed in on Sachin Tendulkar to endorse its entire product range, Inform
ad industry sources.
It built a new corporate identity and adopted a colourful and identifiable logo with
a new base line - 'Eat Healthy, Think better.1
33
CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
34
The Sale of 6 SKUs in 4 Regions namely Western UP, Eastern UP, Central UP
and Rajasthan was analyzed for a Period of three months from April to June. In
April, there were no Promotions on these SKUs while in the Month of May and
June these SKUs were offered with Promotions. The total Sale of these SKUs
without Promotion i.e. in the month of April was compared with the total Sale of
these SKUs with Promotions in the month of May and June. The total Percentage
increase in Sales from April to May and then subsequently from May to June was
analyzed. The Effect of these Promotions on the total Sales was calculated.
These promotions are launched especially for the rural marketsand therefore their
effectiveness is to be tested in the rural market only. These has been introduced to
increase the sale of these biscuits in rural market.
The RPDs and the UPDs of each and every Superstockist was tracked. It was
tracked that whether the RPDs have meet their sales target of 35,000 and UPDs
of 50,000 or not. If they have not met their targets by when are they going to
meet their targets and what is the reason they have not yet met their sales target.
Thereafter the monthly reports of April, May and June were compared and the
Percentage increase in Sale was calculated.
For all the three months the Overall Sale as well as the RPD and UPD Sale was
Calculated for all the four Regions. In Addition to this the the total Percentage of
Stock reaching the Rural market and the Urban market was also calculated. At
each and every step the Percentage increase in Sale of euery region was
calculated.
MATERIAL
APRIL
MAY
JUNE
10
13
44
10
15
22
WESTERN UP
)
s 50
e
n 45
n 40
o
T 35
n
i( 30
E 25
L
A 20
S 15
L
A 10
T 5
O
T 0
44
APRIL
22
10
13
4
1 3
2 3
10
MAY
15
1 1
91 346 TIGER
ORANGE CREAM
10 0G
JUNE
7
91 347 TIGER
ELAICHI CREAM
10 0G
3 5
91 350 TIMEPASS
CL ASSIC S.150G
It is clearly depicted from the above Graph that there has been a tremendous
increase in total Sales of all the SKUs from April to June due to the Promotional
Schemes offered with these SKUs during this Period. The maximum swing in the
total Sale was observed for 50:50 150gm which is about 44 tonnes in June as
compared to only 10 tonnes in April.Also in this region, there has been a
noticeable increase in the total Sale of the Tiger Orange Cream 100 gm. The sale
was increased from 10 tonnes in April to 22 tonnes in June. The Percentage
increase in the total Sale of this SKU from April to June was 120%.
The Total Sale of all the rest of the SKUs has also increased Marginally during
this time Period.
36
B)
MATERIAL
APRIL
MAY
JUNE
35
56
109
61
62
70
27
EASTERN UP
120
109
100
80
60
40
56
APRIL
MAY
35
20
0
70
6162
27
1 1
91340 50:50
150G
91344 TIGER
KESAR KULFI
100G
1 0
8
2 4
91345 TIGER
ROSE M ILK
100G
91346 TIGER
ORANGE
CREAM 100G
91347 TIGER
ELAICHI
CREAM 100G
JUNE
3 7
91350
TIM EPASS
CLASSIC
S.150G
It is clearly seen from the bar Diagram that in this region, the maximum
Percentage increase in total Sales was for 50:50 150gm and Timepass Classics
150gm. There has been a tremendous increase (212% for 50:50 150gm and 800%
for Timepass Classics 150 gm)in sale for these SKUs due to promotional
Schemes offered with these SKUs.
There has been a Marginal increase in the Sale of rest of the SKUs.
C)
37
MATERIAL
APRIL
MAY
JUNE
36
41
70
10
11
13
16
13
32
13
19
RAJASTHAN
80
70
70
60
50
40
36
APRIL
41
MAY
32
JUNE
30
20
11
8 10
10
7 7
13
16
13
6 7 4
13
19
0
91340 50:50
150G
91344 TIGER
KESAR KULFI
100G
91345 TIGER
ROSE M ILK
100G
91346 TIGER
ORANGE
CREAM 100G
91347 TIGER
ELAICHI
CREAM 100G
91350
TIM EP ASS
CLASSIC
S.150G
As it can be seen in the above chart sale of 50:50 due to promotion shoot up like
anything in month of June that is a increase of around 89%. Also other SKUs
like TIGER ORANGE and TIGER ELAICHI showed a decreasing trend due to
unavaibility of stock of the given product. Hence it is concluded that there is a
marginal growth in the sales in this region.
%Rural
% Urban Sale
38
Sale
APRIL
48
52
MAY
50
50
JUNE
51
49
Eastern UP
53
52
52
51
51
e
g 50
a
t
n
e 49
c
r
e
P 48
50
50
49
%Rural Sa le
% Urban S ale
48
47
46
APRIL
MAY
JUNE
In this region also the Percentage Rural Sale has increased from April to June.
There has been an increase of about 3% in Rural Sale from April to June. In the
month of May the Rural and Urban Sales were equal with each being 50%. And
in the Month of June more Sales were made in the Rural market as compared to
Urban Markets. Due to this promotion there has been increase in the Rural Sale.
This is the only Region in which Rural Sales has Exceed the Urban Sales in the
month of June.
B)
%Rural
Month
Sale
% Urban Sale
APRIL
24
76
MAY
17
83
JUNE
15
75
39
Central UP
90
83
76
80
75
Percentage
70
60
50
%Rural Sale
40
% Urban Sale
30
24
17
20
15
10
0
APRIL
MAY
JUNE
In Central UP these Promotions were not able to increase the Percentage Rural
Sale. In all the three months, the Percentage Urban Sales was more than the
Percentage Rural Sale. The Percentage Rural Sale has Constantly declined from
April to June. Although the total sale of these SKUs in this region has increased
but due to allocation Problem more sale was made in the Urban Markets.
C)
Month
%Rural Sale
% Urban Sale
APRIL
30
70
MAY
41
59
JUNE
42
58
40
Rajasthan
80
70
70
59
Percentage
60
50
40
30
58
42
41
30
%Rural Sale
% Urban Sale
20
10
0
APRIL
MAY
JUNE
It is clearly depicted from the graph above that from April to June there has been
an increase in the Percentage Rural Sale. The Percentage rural Sale has increased
by about 12% from April to June. This promotion has successfully increased the
Rural Sales in this Region for all the SKUs.
% Urban
Material
Sale
Sale
91340 50:50
0.70
99.30
13.7
86.30
12.5
87.50
20.1
79.90
100.00
100.00
41
WESTERN UP
120
E
G
A
T
N
E
C
R
E
P
99.3
100
87.5
86.3
80
100
100
79.9
%Rural Sale
60
% Urban
40
20
0
0.7
13.7
12.5
20.1
0
In the given region the main aim of promotion is to reach the sale upto 16.8% as
per Superstockists contribution in this area. Some of the SKUs like TIGER
ROSE and TIGER KESAR KULFI have tried to and SKU TIGER ORANGE
have been able to reach above the target level.And there has beeen an increase in
the percentage rural sale in the month may as compared to April, Also there is
hardly any sale in rest of the SKUs in the first month of promotion. The total sale
as per Target happened in Urban markets only, despite the fact that these
promotion were designed to capture rural market.
B)
%Rural
Material
Sale
% Urban Sale
91340 50:50
50
50
60
40
57
43
42.1
57.9
32.3
67.7
42
P E RCE NTAGE
EASTERN UP
80
70
67.7
60
60
50
50 50
43
40
40
30
20
57.9
57
10
0
42.1
32.3
%Rural Sale
% Urban
0 0
91340 50:50
91344
TIGER
KESA R
KULFI
91345
TIGER ROSE
M ILK
91346
TIGER
ORANGE
91347
TIGER
ELAICHI
91350
TIM EPA SS
CLASSIC
The affect of promotion is clearly seen in the Eastern UP. The target rural sale
according to superstockists contribution should be 61%. Only TIGER KESER
KULFI and TIGER ORANGE are
Percentage are 60% and 57% respectively. For all the rest of the SKUs the
Percentage Rural Sale is very less than the targeted in this month.
The SKU named TIGER ROSE MILK does not show any sale neither Rural nor
Urban in this region. This is due to non availability of this SKU in this region
during the month of May.
C)
Material
%Rural Sale
% Urban Sale
91340 50:50
38.3
61.7
50
50
50
50
40
60
28.3
71.7
43.6
56.4
43
RAJASTHAN
P E RCE NTAGE
80
70
60
50
40
30
71.7
61.7
60
50 50
56.4
50 50
43.6
40
38.3
28.3
%Rural Sale
% Urban
20
10
0
91340 50:50
91344
TIGER
KESAR
KULFI
91345
TIGER ROSE
M ILK
91346
TIGER
ORANGE
91347
TIGER
ELAICHI
91350
TIM EPASS
CLASSIC
44
CHAPTER V
CONCLUSIONS AND FINDINGS
45
Sales Promotional Offers helps the company to increase the over sales of the
product under promotion because consumers tend to buy in ample amount due to
small duration of the promotion and feel value for their money.
But through these promotional schemes company earns less margin.
It also helps in widening their consumer base i.e. it attracts new triers.
It creates the brand awareness among the consumers about the newly launched
product like Tiger cream.
Products which are less popular among the consumers like Pepper Checker
are also get Promoted.
It helps to increase the repurchase rate of the occasional buyers
Since the promotions were designed for rural market and rural market
contributes to 70% of the total market hence attracting more consumers. And turn
them to loyal users
It enhances brand image
Since attractive promotion attracts consumers hence retailers push products
under promotion rather than competitors products of same kind.
Sales promotion also attracts brand switchers who are primarily looking for
low price good value of premiums.
46
PROBLEMS
Stock out:
o
It was observed that most of the Promotional SKUs were out of stock
at most of the depots during the Promotional Period which has effected
the total sales of these SKUs in these four regions tremendously.
47
CHAPTER VI
RECOMMENDATION
48
RECOMMENDATION
As already discussed above, there are certain issues and flaws associated with
Sales Promotion, so in order to implement it effectively and efficiently we would
like to suggest certain recommendations to the company:
Apart from setting overall target for all the SKUs, there should also be
individual SKU wise target so that RPDs and UPDs are able to make
sales of unfamiliar products also.
To increase the sales margin the price value of the main brand should
be relatively higher i.e. around thrice of the Freebie for example
instead of Rs10 pack of 50:50 150G Freebie Pepper Checker should
be given with Rs15 pack of 50:50.
49
CHAPTER - VII
ANNEXURE
ANNEXURE
50
1. Write down the first brand name that comes in your mind
regarding biscuits?
.
d) ..
.
3. What is the frequency of biscuits you take?
(Tick you prefer).
a) Once in a week
b) Twice in a week
b) Thrice in a week
d) .Any others
b) Parle
c) Sun feast
d) Priya Gold
51
c)
.. 50-50
b) .Good Day
d)
Krack Jack
e) Shortage
b) Parle
c) Sun feast
d) Priya Gold
8. Can you change your mind for others brand, if the brand is not
available in shop
which you prefer? (Just tick choice).
a) .Yes
b) .No
9.
(Just tick).
Crit Britannia
Parle
Priya Gold
Sun Feast
eria
Something
Special
Strong
After Taste
Really
Refreshing
Relaxing
Distinctive
Flavor
Any Other
Classification Data
1. Name: -
2. Sex:- Male Female
3. Age: - ..
4. Occupation: - .
5. Income Group:5,000-10,000 .10,000-15,000
..15,000-20,000. Above 20,000
Thanking you
53
CHAPTER VIII
BIBLIOGRAPHY
54
BIBLIOGRAPHY
Effective Planning in Marketing and Development
Leslie Rae
Kaye Thorne
Marketing in Practice
Blackwell
C.B.Gupta
T.N.Chabra
Human Capital
Journal
55