final sip report

Xavier Institute Of Management And Entrepreneurship

“ Premium Cookies – Opportunity and

Competition threat ”


A project report on

“ Premium cookies – opportunity and competitive threat in

West Bengal ”

For

A Project Report Submitted in partial fulfilment of the requirement for

the award of Post Graduate Diploma in Business Management.

Under the guidance of Mr. Biswajit Paul, Sales manager , Britannia

Industries Limited , West Bengal.

By

Ankit Srivastava

Roll No : 12

Batch 21


ACKNOWLEDGEMENT

Acknowledgement is not only a ritual but also an expression of indebtedness to all those who helped in

the completion of the project. I was fortunate enough to get support from a large number of people to

whom I shall always remain grateful.

I am thankful to Britannia India Ltd, where I got the golden opportunity to undertake this project. The

help, assistance and guidance that I received during the course of this project will be earnestly cherished

in times to come.

I was fortunate to be placed under the able guidance of Mr. Biswajit Paul, and my project coordinator

Mr. Devi Prasad who took keen interest in the project, extended timely help, cooperation, ideas and

constructive criticism that helped me to complete the project to the best of my ability in the available time

frame.

I also extend my gratitude to Mr Indraneel Ganguly, Professor at XIME, Bangalore for his support,

review and encouragement regarding this project. At last, I would also like to thank my family, relatives

and friends, who are the strongest pillars of support for all my endeavours

Ankit Srivastava


CONTENTS

CHAPTERS TITLE

PAGE NO.

1

EXECUTIVE SUMMARY

8

1.1 OBJECTIVES

8

1.2 PROJECT DELIVERABLES

8

1.3 RESULTS

8

1.4 CONCLUSION

9

1.5 RECOMMENDATIONS

9

2

INTRODUCTION

10

3

NEW PRODUCT SALES AND SALESMEN MOTIVATION

11

3.1 INCENTIVE PLANS

12

3.2 INCENTIVES TO SALESMEN

13

3.3 INCENTIVES TO LARGE RETAILERS AND WHOLESALERS

13

3.4 SALES TARGETS

14

4

PREMIUM COOKIES- OPPORTUNITIES & COMPETITION THREAT

17

4.1 BRITANNIA, ITC & PARLE FACTORIES IN WEST BENGAL

18

4.2 OVERVIEW

19

4.3 MARKET VISITS

20

4.4 PRODUCT PORTFOLIO OF ITC

21

4.5 SUNFEAST MOM'S MAGIC PRODUCT PORTFOLIO STRENGH

22

4.6 PRODUCT PORTFOLIO OF PARLE

23

4.7 PARLE AMERICANA PRODUCT PORTFOLIO STRENGTH

24

4.8 PRODUCT PORTFOLIO OF BRITANNIA

25

4.9 GOOD DAY NUTS&COOKIES PRODUCT PORTFOLIO STRENGTH

26

5

RESEARCH METHODOLOGY

27

5.1 SAMPLE DESIGN

27

5.2 DATA COLLECTION METHOD

27

5.3 SAMPLE SIZE OF STUDY

27

5.4 FINDINGS & ANALYSIS

28

5.6 SAMPLE STUDY OF CUSTOMERS

29

5.6.3 FINDINGS & ANALYSIS

30

OTHER KEY OBSERVATIONS

35

6

BRITANNIA AND OTHER COMPANIES MERCHANDISING

36

7

SWOT ANALYSIS OF GOOD DAY NUTS & COOKIES

37

8

RETAIL INTERVENTIONS FOR GOOD DAY NUTS & COOKIES

38


9

RECOMMENDATIONS AND SUGGESTIONS

40

10

COMPANY PROFILE

41

ANNEXURE

42

REFERENCES

43

LIST OF TABLES:

TABLE 3.1 NO. OF RETAIL OUTLETS & THE 11

NO. OF SALESMEN BELONGING TO THE 2 DISTRIBUTORS

TABLE 3.2 INCENTIVES TO SALESMEN 13

TABLE 3.3 TARGETS FOR SALESMEN OF SWASTIK 15

TABLE 3.4 TARGETS FOR SALESMEN OF KUNDU 16

TABLE 4.1 PRODUCT PORTFOLIO OF ITC 24

TABLE 4.2 PRODUCT PORTFOLIO OF PARLE 26

TABLE 4.3 PRODUCT PORTFOLIO OF BRITANNIA 28

TABLE 5.1 SAMPLE SIZE OF STUDY 30

TABLE 5.2 FINDINGS & ANALYSIS 31

TABLE 6.1 BRITANNIA AND OTHER COMPANIES MERCHANDISING 39


LIST OF FIGURES :

FIGURE NO. TITLE

PAGE NO.

4.1

ITC FACTORY

18

4.2

PARLE FACTORY

18

4.3

BRITANNIA FACTORY

18

5.1

TYPE OF BISCUITS THAT CUSTOMER PREFER

30

5.2

FAVOURITE BISCUI BRANDS OF CUSTOMER

31

5.3

QUANTITY VS QUALITY

32

5.4

MAXIMUM AMOUNT A CUSTOMER IS WILLING

33

TO PAY FOR A 58G NUTS AND COOKIES

34

5.5

PRICE VARIANTS OF NUTS AND COOKIES CUSTOMER

WOULD PREFER TO BUY

35

8.1

PLACING NUTS AND COOKIES IN FRONT

39

INCREASES VISIBILITY OF THE PRODUCT


ABBREVIATIONS

FMCG - Fast Moving Consumer Goods

OFMCG - Other Fast Moving Consumer Goods

ECO - Effective Coverage

DS - Distributor Salesperson

BIL - Britannia Industries Limited

WD - Wholesale Distributor

ITC - Indian Tobacco Company


1. EXECUTIVE SUMMARY

1.1 OBJECTIVE:

To understand the sales and distribution channels in rural markets.

To motivate salesperson in order to increase the sale of a new product.

Identify and assess competition threat of Good Day as well as the market potential and

opportunity in west Bengal.

1.2 PROJECT DELIVERABLES:

Identify & map out Moms Magic & Parle Americana retail & Wholesale activities in West

Bengal.

Assess the product portfolio strength of Moms Magic in West Bengal .

Market construct & potential opportunity of Premium Cookies..

Develop retail interventions for growth of Britannia Good Day in these markets.

1.3 RESULTS :

The rural market is rapidly growing in the FMCG sector. The reach of products to consumer is

becoming easier. The distribution network is making sure that all the demands of the market are being

met proficiently. There were also obstacles that prevented the new product from having a hold in these

markets.

There is a problem of time constraint in visiting these markets

Brand sense and Brand awareness among consumers is still not up to the expectation.

The pricing of products play a major role in these markets. High priced products generally have

low demand in these markets.

Distribution is also a major problem in these areas. Many of the products reaching the retail stores

get damaged and are asked to return.


1.4 CONCLUSIONS :

Even under stiff competition BIL ( Britannia Industries Limited ) has been successful in

keeping a major hold in these markets compared to main rivals like ITC and Parle. Britannia is still the

market leader in the premium cookie segment. Strong distribution system of BIL is another factor

contributing to the success in these markets. Good Day Nuts and Cookies has been doing very well in

these markets in spite of being a higher priced cookie. The relationships developed by salesperson with

retailers and wholesalers in these areas has led to effective sale of this premium cookie.

1.5 RECOMENDATIONS:

There is a need to create brand awareness or brand sense in markets where local players

are ruling. The brand sense can be created through advertising on local channels, modified packaging and

special offers for rural markets. The price of the product needs to be addressed by BIL to enhance sales in

these markets. Financial incentives to both retailers and salesperson can enhance sales of this product

effectively. Markets which are still not reached should be reached through advertising and promotions

and maybe providing free samples to let the consumers know and feel the difference. A market visit

should be done by some officials regularly to monitor the sale of Nuts and Cookies and address any

problems if faced. The incentive schemes for distributors should be rum more often to enhance the

performance of individual distributors. Product detail and variants can be provided to the DS to work

efficiently.


2. INTRODUCTION

Britannia recently launched a new product in the premium cookie segment named Good Day

Nuts and Cookies in response to regain its market share it lost to Parle and ITC over the past few years.

The Wadia controlled company has redesigned the look and feel of its highest selling cookie brand, a first

in the brand‟s 27 year old history.

At present , Good Day controls over a fourth ( 27 per cent ) of the Rs 8000 crore cookie market, a steep

decline from nearly 40 per cent share it enjoyed during most of last decade as Parle and ITC entered its

turf with lower priced cookies. Within cookies segment , Britannia still controls nearly a third of the

overall market while Parle has 25 per cent share.

In the past one year , Britannia launched Good Day Chunkies, Nutrichoice Heavens and Tiger Butter

Krunch to strengthen its position in the cookie segment. Around the same time ITC introduced Moms

Magic under the Sunfeast umbrella. Parle on the other hand launched Parle Americana. In response to this

Britannia has come up with a premium cookie Nuts and Cookie this April.

The summer internship project was divided into two parts:

Good Day Nuts and Cookies sale in the rural markets and enhancing sales through salesmen

motivation.

Analysing opportunity and competitive threat for Good Day Nuts and Cookies.


3. NEW PRODUCT SALES & SALESMEN

MOTIVATION

The project started on the 6th

of May . I was asked by my project head, Mr. Biswajit Paul

to meet my project coordinator, Mr. Devi Prasad in Uttarpara. I was asked to travel with salesmen in

various areas and understand how Britannia products were installed in various retail outlets. I was

assigned the task to manage salesmen of 2 distributors covering 4 rural markets.

Another important objective of this project was to manage the sales of Britannia Nuts and

Cookies in these markets and helping in enhancing sales through salesmen motivation. Salesman

motivation involved explaining them the financial incentives with respect to installing this product in

retail and wholesale stores. The distributors involved in this project were :

SWASTIK

KUNDU

(Table 3.1 : No. of retail outlets and the salesmen belonging to the 2 distributors )


3.1 INCENTIVE PLANS

An incentive program is a formal scheme used to promote or encourage specific actions or behaviour by a

specific group of people during a defined period of time. Incentive programs are particularly used in

business management to motivate employees and in sales to attract and retain customers. Scientific

literature also refers to this concept as pay for performance. These programs are primarily used to drive

sales, reduce sales costs, increase profitability, develop new territory, and enhance margins. Sales

incentive programs have the most direct relationship to outcomes.

A sales incentive plan (SIP) is a business tool used to motivate and compensate a sales professional or

sales agent to meet goals or metrics over a specific period of time, usually broken into a plan for a fiscal

quarter or fiscal year. An SIP is very similar to a commission plan, however, an SIP can incorporate sales

metrics other than goods sold(or value of goods sold), which is traditionally how a commission plan is

derived. Sales metrics used in an SIP are typically in the form of sales quotas (sometimes referred to as

point of sale or POS shipments), new business opportunities and/or management by objectives (MBOs)

independent action of the sales professional and is usually used in conjunction with a base salary.

SIPs are used to incentivize sales professionals where total sales are not a precise measure of sales

productivity. This is usually due to the complexity or length of the sales process or where a sale is

completed not by an individual but by a team of people, each contributing unique skills to the sales

process. SIPs are used to encourage and compensate each member of the sales team as they contribute to

the team's ability to sell. It is not uncommon for the members of such teams to be located in different

physical locations and for the product introduction to happen in one location and the purchase of such a

product to occur in another location.

I was given the task to explain the twenty salesman the financial incentives that they would be receiving

for the sale of Good Day Nuts and Cookies in a particular retail store or to a wholesaler. These financial

incentives were necessary as it was a new product and it required a broad coverage in the market. The

financial incentives helped in motivating these salesman to go beyond their ability and convince retailers

or wholesalers to keep as many Nuts and Cookies possible.


3.2 Incentives to Salesmen:

( Table 3.2 : Incentives to salesmen )

3.3 Incentives to large retailers and wholesalers:

Many large retailers and wholesalers were provided financial incentives by the company to keep

large quantities of Good Day Nuts and Cookies.

These financial incentives included providing these retailers and wholesalers banner ads of Good

Day Nuts and Cookies . These banner ads would provide these retailers and wholesalers with a

monthly income of Rs 250.

The retailers or wholesalers who bought more than 48 pieces of Good Nuts and Cookies every

week were given these banner ads.

Good Day Nuts and Cookies ( Rs 10 ) • Installing 12 Nuts and Cookies provided the salesman with an

incentive of Rs 4

• Intalling 24 Nuts and Cookies provided the salesman with an incentive of Rs 8

• Installing 48 Nuts and Cookies provided the salesman with an incentive of Rs 24

Good Day Nuts and Cookies ( Rs 20 ) • Installing 12 Nuts and Cookies provided the salesman with an

incentive of Rs 8

• Installing 24 Nuts and Cooies provided the salesman with an incentive of Rs 16

• Installing 48 Nuts and Cookies provided the salesman with an incentive of Rs 48


3.4 Sales Targets

Sales Targets are always calculated on the basis of last performance done as per records . Since

everyone has a capacity to perform best keeping in mind all factors & pit falls throughout the calculated

time . It could be daily, Weekly , Monthly, Quarterly, Six Monthly & then Yearly targets.

I was again given the task of setting sales targets to the salesmen belonging to Kundu and Swastik.

These sales targets were specifically for Good Day Nuts and Cookies. I was asked by my project head to

set sales targets in accordance with the average of ECO ( Effective Coverage ) of last 3 months of Good

Day Butter.

Effective coverage ( ECO ) is the ratio of total prospects in an area to the number of prospects who can

be effectively targeted or approached. The effective coverage strategy takes into account the target

customer segment, accordingly the size and structure of sales force to be deployed is planned and the

sales channel used to reach the customers is decided.

.

The right structure of sales team and the number of sales people is significant in determining the number

of prospects that can be reached and hence the coverage that can be achieved. Also, the distribution

channel model deployed determines the amount of coverage that can be achieved as how extensive or in-

extensive the distribution is, limits the availability of the product/service.

Effective coverage of a particular product for a salesman simply means the number of retail outlets the

salesman has been able to install the product . ( usually calculated on a monthly basis ) . The sales targets

set for Good Day Nuts and Cookies for 20 salesmen are given below :


3.4.1 Targets for salesmen of Swastik :

Area : Srirampur

Name of salesman Good Day Butter ( ECO ) Good Day Nuts and Cookies ( ECO )

( FEB - APR ) ( Monthly )

Santanu Santra 265 88

Uttam Haldar 212 71

Srikanta 188 63

Gobinda 268 89

Nur Amin 241 80

Raja Mullick 66 22

Shankar 182 60

Boddhisatwa Mullick 225 75

Area : Rishra

Name of Salesman Good Day Butter ( ECO ) Good Day Nuts and Cookies ( ECO )

( FEB- APR ) ( Monthly )

Subrata Das 285 95

Bikas Pal 230 72

Bijoy 144 48

( Table 3.3 : Targets for salesmen of Swastik )


3.4.2 Targets For salesmen of Kundu :

Area : Uttarpara

Name of salesman Good Day Butter ( ECO ) Good Day Nuts and Cookies ( ECO )

( FEB - APR ) ( Monthly )

Asit Nandi 240 80

Sukhdeb 209 70

Subrata 169 56

Biman 186 62

Santanu 171 57

Area : Konnagar

Name of Salesman Good Day Butter ( ECO ) Good Day Nuts and Cookies ( ECO )

( FEB- APR ) ( Monthly )

Uttam Gayen 212 70

Prakash Kumar 185 61

Anup 143 48

Abhik sarkar 231 77

( Table 3.4 : Target for salesmen of Kundu )


4. PREMIUM COOKIES

OPPORTUNITY & COMPETITION THREAT


4.1 BRITANNIA , ITC & PARLE FACTORIES IN

WEST BENGAL

( Fig 4.1 ITC factory)

ITC

PARLE ( Fig 4.2 Parle factory) (Fig 4.3 Britannia factory) BRITANNIA


4.2 OVERVIEW

Having been dominated by a formidable leader like Parle for several years, Britannia Industries is finally

having a day in the sun. The Rs 25,000 crore biscuits market has seen some shake up in the last couple of

months with the Nusli Wadia run Britannia Industries overtaking Parle Products by a slender margin to

become a leader.

Britannia's market share was a little over 28% in value terms in April this year, while Parle's value share

during the month stood at a little over 27.5%. This gives Britannia a 0.5% edge over Parle, multiple

sources confirmed to TOI, while quoting all-India Nielsen numbers. Britannia, sources said, started

developing a tentative lead over Parle in the preceding months of February and March this year and it has

continued to build on the same.

Parle, however, dominates the market on an annual basis both in terms of value as well as volumes. Given

its ubiquitous Parle G biscuit, it's difficult for a rival to beat Parle at the volume game. The Vijay

Chauhan and Sharad Chauhan-controlled firm, which is the pioneer in biscuits, is understood to have

taken a beating due to a dull market scenario with respect to glucose biscuits. The company now appears

to be taking efforts to claw back lost share by targeting kids with a series of exclusive packs.

Britannia has been in a rejig mode after Wadia installed Varun Berry, a Unilever and Pepsi veteran, as the

new managing director. The company, in which French food and dairy giant Danone, was an equal

partner till some years ago had faced pressure in holding its share of market and also dragged in

profitability.

Industry watchers said Britannia had wrested a similar tentative lead over Parle more than a decade ago

but couldn't keep a grasp on it for long. For Britannia, big brands like Good Day and NutriChoice have

been the growth drivers in recent quarters, each gaining about 1% share in overall biscuits market.

In the last decade, a lot has changed in the biscuit sweepstakes with new entrant ITC pushing existing

players to continuously reinvent their portfolios. ITC today has a share of around 11% which has inched

up year on year even as both Britannia and Parle have come off their peaks of around 33-35% share of the

market which they held a few years ago.


4.3 MARKET VISITS

The 2 distributors Swastik and Kundu were catered to more than 2000 retail and wholesale shops in 4

market areas.

The market areas included were:

UTTARPARA

KONNAGAR

RISHRA

SRIRAMPUR

Uttarpara and Srirampur usually comprised of large retail and wholesale stores . the task of installing

Good Day Nuts and Cookies in these areas was not a tough one. The relationship that the salesmen had

developed in these helped in installing large quantities of Nuts and Cookies in the retail outlets.

On the other hand market areas like Rishra nad Konnagar comprised of many small retail outlets and

kirana shops. To install Nuts and Cookies in this area was a challenge. The retail outlets were not ready to

buy the product as the retail owners felt that the price of the product was relatively high and they would

not get consumers in this market to purchase the product.


4.4 PRODUCT PORTFOLIO OF ITC

( BISCUIT SEGMENT )

( Table 4.1 : Product portfolio of ITC ( Biscuit segment) )


4.5 SUNFEAST MOM‟S MAGIC PORTFOLIO

STRENGTH

ITC „s Mom‟s Magic is their latest addition to the premium cookie segment. A large presence of

ITC‟s competition in the increasing market share is due to the increased acceptance of Mom‟s

Magic among consumers.

Sunfeast Mom‟s Magic comes in two variants :

1. Sunfeast Mom‟s Magic Cashew and Almond.

2. Sunfeast Mom‟s Magic Rich Butter.

Mom‟s Magic attractive packaging is one of its major strengths. It comes in a shimmery green and

maroon colour.

Both the variants of Mom‟s Magic comes in three different weights :

1. 75 g

2. 150 g

3. 250 g

The prices of these biscuits are :

1. Rs 10 ( 75g Magic Cashew and Almond, 75g Rich Butter )

2. Rs 20 (150g Magic Cashew and Almond, 150g Rich Butter )

3. Rs 30 (250g Magic Cashew and Almond, 250g Rich Butter )


4.6 PRODUCT PORTFOLIO OF PARLE

Crunch Digestive Crackers Cookies Cream Choco Fills Premium

Cookies

Others

Parle – G Parle

Simply

Good

Digestive

Monaco 20-20

cookies

Happy

Happy

Creams

Milano Parle

Americana

Butter

Cookies

Parle Marie

Parle- G

gold

Nimkin Gold Star

Magix Parle

Americana

Cashew

Butter

Cookies

Parle Rusk

Coconut

Crunch

Top Hide and

Seek

Jam- in

Milk Shakti Crackjack Milano

Minis

Hide and

Seek Fab

Hide and

Seek

Bourbon

Hide and

Seek Black

Bourbon

( Table 4.2 : Product portfolio of Parle )


4.7 PRODUCT PORTFOLIO STRENGTH OF

PARLE AMERICANA

Parle Americana is the latest entry of Parle into the premium cookie segment. The product is still

not widely popular or accepted among consumers specially in the rural or sub- urban areas . Parle

Americana is currently competing against Good Nuts and Cookies and Sunfeast Mom‟s Magic in

this segment.

Similar to other premium cookies Parle has put a lot of focus in its packaging of the product. The

packets come in shining dark blue and red colours with the American flag on it to justify the name

of the product.

Parle Americana comes in two variants:

1. Parle Americana Butter Cookies.

2. Parle Americana Cashew Butter Cookies.

Both the variants of Parle Americana come in two different weights :

1. 90 g

2. 200 g

The prices of these biscuits are :

1. Rs 10 ( 90 g Parle Americana Butter Cookies, 90 g Parle Americana Cashew Butter

Cookies )

2. Rs 20 (200 g Parle Americana Butter Cookies, 200 g Parle Americana Cashew Butter

Cookies.


4.8 PRODUCT PORTFOLIO OF BRITANNIA

GOOD DAY CRACKERS NUTRI

CHOICE

CREAM MARIE OTHERS

Good Day

Cashew

50 50 Sweet and

Salty

Heavens Tiger Cream ( 8

variants0

Marie Gold Little Hearts

Good Day Butter 50 50 Maska

Chaska

Digestive

Wholesome

Treat

Milk Bikis ( 2

variants)

Marie Gold Vita Nice Time

Good Day Nuts

and Cookies

Time Pass Digestive 5

Grains

Jim jam Treat ( 6

variants )

Good day Choco

Chip

Top Essential Oats Bourbon

Good Day Choco

Nut

Essential Ragi Pure Magic ( 4

variants )

Good Day

Chunkies

Cracker Simply

Lite

Cracker Nature

Spice

Thin Arrow Root

Essential

Cookies

( Table 4.3 : Product portfolio of Britannia )


4.9 PRODUCT PORTFOLIO STRENGTH OF

GOOD DAY NUTS & COOKIES

Britannia Good Day Nuts & Cookies is the recent entry of Britannia in the premium cookie

segment. This has been launched in order to regain market share in this particular segment. It was

launched recently in April and was widely promoted durin IPL by getting associated with one of

IPL teams namely , Kings Punjab.

Good Day Nuts & Cookies comes in a single variant.

The packaging of this product is very attractive with a glittering green colour cover. This helps in

catching a lot of eye balls to the product.

It is slightly higher priced than any of its competitor products.

Good Day Nuts and Cookies come in 3 different weights :

1. 58 g

2. 100 g

3. 200 g

The prices of these biscuits are:

1. Rs 10 ( 58 g Good Day Nuts and Cookies )




5. RESEARCH METHODOLOGY

The full research was conducted in 4 different markets of West Bengal :

UTTARPARA

KONNAGAR

RISHRA

SRIRAMPUR

5.1 SAMPLE DESIGN

SAMPLE DESIGN : Wholesalers and retailers of the markets visited

SAMPLE SIZE : 72

SAMPLING PROCEDURE : Random Sampling

5.2 Data Collection Method:

Primary Data :

Primary data was collected through self administered surveys. The aim of this survey was to determine

the relative position of Good Day Nuts & Cookies with Mom‟s Magic in these markets . ( Parle

Americana was not considered as handful of retail outlets kept the product ) . These data were collected

to see the presence of Nuts and Cookies compared to Mom‟s Magic in retail and wholesale stores. No

questionnaires were used during this process.

5.3 Sample Size Of Study

Sample Size SWASTIK KUNDU TOTAL

Wholesaler 4 3 7

Retailer 35 30 65

( Table 5.1 : Sample Size of Study )


5.4 FINDINGS & ANALYSIS

NO. OF OUTLETS RETAIL ( % of stores ) WHOLESALE ( % of

stores)

At least 1 Sunfeast

Mom‟s Magic

72.3 % 85.7 %

At least 1 Good Day Nut

and Cookies

80.5 % 100 %

At least 1 of both 58.4 % 85.7 %

Has Mom‟s Magic but no

Nuts and Cookies

7.6 % 0

Has Nuts and Cookies but

No Mom‟s Magic

15.3 % 14.2 %

( Table 5.2 : Findings and analysis )

5.5 ANALYSIS :

Good Day Nuts and Cookies has a better presence than Sunfeast Mom‟s Magic in these markets

according to the sample study. Nuts and Cookies was present in 65 stores , on the other hand

Mom‟s Magic was present in 53 stores.

Around 15.3 % of the stores had Nuts and Cookies but no Mom‟s Magic. Britannia can

consolidate this position. The larger number of wholesaler they can cater to , the greater their sales

could be. Wholesalers take large quantities at once and thus could provide greater exposure to

Nuts and Cookies.

Around 7 stores ( all 7 stores were kirana stores ) did not buy Nuts and Cookies. Britannia should

come up with incentive plans for these kirana stores to motivate retailers to buy the product.

Another area to look upon is the 7.6 % of stores that buy Mom‟s Magic and not Nuts and

Cookies. Britannia should make sure that they keep some sort of presence of Nuts and Cookies in

these retail outlets. This can be done by motivating the salesmen by giving them larger incentives

to reach 100 % effective coverage ( ECO ) target.


5.6 Sample Study of customers

5.6.1 SAMPLE DESIGN :

SAMPLE DESIGN : Customers belonging to the 4 market areas of study

SAMPLE SIZE : 62

SAMPLING PROCEDURE : Random Sampling

5.6.2 Data Collection Method

Primary Data :

Primary data collected through self administered survey questionnaire. The aim of this questionnaire was

to find the relative position of Good Day Nuts and Cookies over sunfeast Mom‟s Magic in the minds of

the consumer. The data was collected from consumers at various retail outlets.

The idea was to target customers who were regular consumers of biscuits . A few questions were outlined

and asked to gain insights on consumer‟s preferences on topics like “quantity vs quality ” and

“Britannia vs ITC vs Parle ” . A total of 62 customer responses were obtained. All the findings below are

from the questionnaire attached in the annexure below.


5.6.3 FINDINGS & ANALYSIS

1. Type of biscuits that you prefer :

(Fig 5.1 : Type of biscuits that customer prefer) *

A large number of customers preferred cream biscuits over cookies and marie . There is a large

potential for cookies in these areas which are untapped. A majority of the responders had little or

no idea about premium cookies.

A bulk of the preference went for Marie because Marie biscuits are available at low prices

compared to Cream and Cookies. The purchasing power of people in these areas are low and thus

people tend to buy biscuits that are more in quantity and cheaper. Britannia should target these

customers by either increasing the quantity of cookies or price it moderately.

Britannia salesperson should ensure that the shelf presence of cookies increases in every retail

and wholesale outlets.

Use of more banner ads at retail outlets can reinforce customers to buy cookies.

*source : responses from the attached questionnaire in the annexure

Marie

Cream

Cookies


2. Which is your favourite biscuit brand

(Fig 5.2 : Favourite biscuit brands of customers) *

Britannia still rules the preference of customers in these markets.. A majority of the responses

were in favour of Britannia. This shows the image that they have created of themselves in the

minds of customers. This can be useful in exploring the untapped potential of Nuts and Cookies.

ITC is the next major competitor of Britannia when it comes to customer preferences. This could

be due to increased advertising and increased shelf presence of ITC biscuits in retail outlets.

The brand pull of Britannia can be used to direct consumers of Britannia toward increased

consumption of their new product.

This is also due to the large distribution network of Britannia in these areas. Increased availibility

of Britannia products also enhances customer satisfaction in these areas.

* source : responses from the attached questionnaire in the annexure

Britannia

Parle

ITC


3. Quality vs Quantity

( Fig 5.3 : Quantity Vs Quality ) *

47 out of 62 responses were in favour of Quality . This shows that the consumers rely their buying

behaviour on quality these days. This could be because the end consumers are getting educated

about products and make their choices carefully.

This factor could play in favour of Good Day Nuts and Cookies , as it has entered the market as a

superior quality product.

The retailers should be informed well about the product and should be asked to push this product

more to the end consumers.


Quality

Quantity


4. What is the maximum amount you are willing to pay for a 58g Nuts and Cookies considering

it a superior quality product.

(Fig 5.4 : Maximum amount customers willing to pay for a 58g Nuts & Cookies) *

The majority of the responses indicate that the maximum a customer would like to pay for a 58g

biscuit would be Rs 15. Britannia Nuts and Cookies is currently priced at Rs 10. This shows if the

message of the product to be a “superior quality product” reaches the customer , they wouldn‟t

mind to pay a higher price for Nuts and Cookies compared to Mom‟s Magic.

Another surprising result is a large number of respondents were also willing to pay Rs 20 which is

generally a aprice range for a biscuit of above 90 g. This raises the question whether “Britannia

Nuts and Cookies has been actually underpriced? ” . Considering the responses of the customers it

seems that the product has much more potential that it can tap into.


Rs 10

Rs 15

Rs 20


5. What variant of Good Day Nuts and Cookies would you buy? Rs 10 ( 58 g ) , Rs 20 ( 100 g )

or Rs 40 ( 200 g ) ?

( Fig 5.5 : Price variant of Nuts & Cookies would customers prefer ) *

Around 50% of the responders preferred to buy Rs 10 Good Day Nuts and Cookies. This explains

their need for a low priced product as the purchasing power of people are low in these areas. To

ensure retailing of these products in small stores , the salesmen should push more of Rs 10 Nuts

and Cookies rather than other price variants of Nuts and Cookies.

Only 18 % of customers preferred to buy Rs 40 Good Day Nuts and Cookies. This price variant of

Good Day Nuts & Cookies should be pushed mainly in large retail stores and wholesale stores.

This variant of Cookies is not likely to have high sales in these markets.

A major portion of the responses also favoured Rs 20 Good Day Nuts and Cookies. From the

survey it is clear that majority of the customers would prefer Cookies in the range of Rs 10 and Rs

20. People are reluctant to spend Rs 40 for a 200 g biscuit and hence would prefer biscuit that

provide them with larger quantity at that price.


Rs 10

Rs 20

Rs 40


5.7 Other Key Observations :

A large number of retailers were also surveyed on a common question ( Which brand of biscuit

would you prefer to keep in stores ) . Majority of the retailers preferred to keep Britannia products

in comparison to ITC and Parle products. This was due to the increased preference of consumers

of Britannia biscuits. Parle Americana had a a very small or no market at all.

Britannia also served more retail and wholesale outlets in these areas compared to their major

competitors.

A large number of retailers promoted ITC Mom‟s Magic due to the banner ads provided by ITC.

These banner ads provided the retailer with a fixed monthly income of Rs 300. This fixed income

motivated the retailers to promote Mom‟s Magic more than other products. Britannia should also

offer more banner ads to insrease the visibility of their products.

Retailers and wholesalers in Uttarpara and Srirampur preferred to keep large amounts of Good

Day Nuts and Cookies compared to areas like Rishra and Konnagar. A large number of problems

occurred in installing Good Day Nuts and Cookies in Rishra due to large presence of kirana

stores. The kirana stores felt that the product was over priced and there would be no customers for

the product.

Consumers have low loyalty when it comes to products like biscuits.

Many retailers pushed Parle products more due to higher margins compared to ITC and Britannia.

Good Day Nuts and Cookies has higher scope of innovation among kids and young population.

This segment of population usually prefer products like Cookies and Cream . More television

advertisements can persuade more of this population to buy Good Day Nuts and Cookies.

Other competitors in cookie segment include Priya Gold and Anmol biscuits.

Sunfeast Mom‟s Magic also provided variable discounts due to manual bills. These discounts

motivated a large number of retailers to push Mom‟s Magic in their stores.


6. Britannia and other companies merchandising

Name of Company Kind of

Merchandising

Amount paid per

month

Time period of

contract

BRITANNIA WINDOW

DISPLAY

250 3 Months

PARLE WINDOW

DISPLAY

400 6 Months

ITC WINDOW

DISPLAY

300 3 Months

HORLICKS WINDOW

DISPLAY

250 6 Months

ANMOL WINDOW

DISPLAY

400 6 Months

PRIYA WINDOW

DISPLAY

300 3 Months

( Table 6.1 : Britannia and other companies merchandising )

Britannia provided the least amount for window displays to retailers compared to its competitors.

This area is to be looked upon. Britannia should increase the amount paid for window display and

increase the time of contract to 6 months. Increasing the time of contract would ensure retailers a

permanent income for a longer period of time and hence will be more motivated to push God Day

Nuts and Cookies.


7. SWOT ANALYSIS OF GOOD DAY

NUTS & COOKIES

Strengths:

1. Superior quality product.

2. Brand pull.

3. Increased expenditure in T.V advertisements.

4. Largest distribution network in these areas.

5. All year round paid advertisements at retail stores (window display & banner ads )

6. Mode of secondary distribution allows for flexible

credit system.

Weakness:

1.Highly priced product.

2. Delivery issues.

3. Less awareness of the product.

4. Stock availibilty issues at certain places like Rishra.

Opportunity:

1. Urban areas of Bengal where the purchasing power

of consumers are high

2.New variants of the product might increase its sales.

3. Focus on visibility / merchandising in kirana

stores.

Threat:

1. Increased competition from ITC Moms Magic and

Parle Americana.

2. Consumers have low loyalty and switching easily to competitors products.

3. Retailers pushing Parle Americana due to higher

margins leading to increased visibility.


8. Retail Interventions for Good Day Nuts & Cookies

Increase visibility of Good Day Nuts and Cookies.

1. Increase visibility of Good Day Nuts and Cookies

Try to install Good Day Nuts and Cookies in all stores possible. This can be done by

increasing ECO targets for salesmen an providing them larger financial incentives for achieving those targets.

Choose the right outlet and try to push much more than what an outlet buys on an average in one bill. Large retailers and wholesalers can be persuaded to buy larger amounts of Good Day Nuts and Cookies.

Motivate retailers to put Good Day Nuts and Cookies in front of their stores . Placing the product in front would grab eyeballs of customers. Hence would help in increasing visibility of the product.

Print ads can be used in many areas to aware a large section of consumers about Good Day Nuts and Cookies.

Ensure to increase visibility in comparison to competitors products like Sunfeast Mom’s Magic and Parle Americana.


( Fig 8.1 : Placing Nuts& Cookies in front increases visibility of the product )

Monitoring and daily updates

Monitoring and daily updates

Daily updates of sale of Nuts and Cookies should be maintained. This will help in analysing the behaviour of consumers in these market towards premium cookies.

Once a week , the retailer should be asked about the performance of Good Day Nuts and Cookies.

Ensuring timely delivery of Good Day Nuts and Cookies. Distributors need to ensure that the product reaches exactly the next day after the order is taken. This helps in building good rapport and trust with the retailers.

Britannia also needs to ensure that the products are dropped in retail outlets without getting damaged.

Every week a senior official should review the performance of the product in a particular market and address any concerns shown by the retailers or wholesalers.


9. RECOMMENDATIONS & SUGGESTIONS

New schemes must be introduced in order to improve retailing of Good Day Nuts and Cookies:

1. 1 Good Day Nuts and Cookies should be given free to every retailer buying a minimum of 20

pieces. This will motivate the retailers to buy more of Nuts and Cookies. A free unit of Nut

and Cookies would be a source of income for the retailer and they would try to push the

product more to the end consumers.

2. A product like Little Hearts could also be given free to retailers for buying a minimum of 12

pieces of Nuts and Cookies.

3. Wholesalers should be given prizes from Britannia on a monthly basis if they achieve their

targets set to them. This would ensure wholesaler satisfaction which is necessary to enhance

sales.

4. New banner ads of Nuts and Cookies should be provided to retailers and wholesalers . This

would help in spreading knowledge and awareness about the product .

5. Special focus should be on kirana stores. A large number of kirana stores do not accept Good

Day Nuts and Cookies due to its higher price. Special financial incentives should be given to

these kirana stores to promote Good Day Nuts and Cookies.

6. Britannia should target the price variants of Good Day Nuts and Cookies according to areas.

For example , in areas like Rishra and Konnagar where the markets are small and the

purchasing power of people are very low, Britannia can push for Rs 10 and Rs 20 products in

as many retail outlets possible. 200g ( Rs 40 ) of Good Day Nuts and Cookies can be pushed

in markets like Srirampur and Uttarpara where there are large retail outlets and the purchasing

power of people are slightly higher.


10. COMPANY PROFILE

123 years ago, in a small house in central Calcutta (now Kolkata) an intrepid baker made a batch of

delicious, golden brown biscuits. These were meant for officers of the British Raj and their families,

people used to the exacting standards of English tea-time snacking. From the paeans of ecstasy for that

first batch of aromatic, flavour-some biscuits was born a long tradition of delectable baking - and its

Indian custodian, Britannia.

Over the last century and a quarter, Britannia has been serving the Indian consumer with a range of fresh,

nutritious and flavour-rich products.

Today, Britannia is a leading food company in India with over Rs. 8500 crores in revenue, delivering

products in over 5 categories through 4.2 million retail outlets to more than half the Indian population.

Their core emphasis across portfolios is on healthy, fresh and delicious food and they are the First Zero

Trans-fat Company in India. 50% of our product portfolio is enriched with micro-nutrients. Their

products are also delivered through the Britannia Nutrition Foundation to combat malnutrition among

underprivileged children.

Britannia Dairy had its beginnings in 1997. Britannia was one of the first companies in India to pioneer

category defining innovations like Cream Cheese and introducing a host of international flavors for its

cubes & spreads in India. Today Britannia Dairy products contribute close to 10% of the company‟s

revenue. Britannia markets its dairy portfolio on the back of a well integrated cold chain logistics network

and reaches 3 million outlets across the length & breadth of this country.

The company's factories have an annual capacity of 433,000 tonnes. The brand names of biscuits include

VitaMarieGold, Tiger, Nutrichoice Junior, Good day, 50 50, Treat, Pure Magic, Milk Bikis, Good

Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts among others.

Tiger, the mass market brand, realised $150.75 million in sales including exports to countries including

the U.S. and Australia, or 20% of Britannia revenues in 2006.

Dairy products contribute close to 10% to Britannia's revenue. Britannia trades and markets dairy

products, and its dairy portfolio grew to 47% in 2000-01 and by 30% in 2001-02. Britannia holds an

equity stake in Dynamix Dairy and outsources the bulk of its dairy products from its associate. Its main

competitors are Nestlé India, the National Dairy Development Board (NDDB), and Amul (GCMMF).


ANNEXURE

QUESTIONNAIRE :

How often do you visit a supermarket or grocery store?

1. Frequently 2. Sometimes 3. Hardly

What type of biscuits do you like?

1. Marie 2. Cream filled 3. Cookies

Do you prefer quality over quantity?

1. Yes 2. No 3. Maybe

What is the maximum amount you are willing to pay for a 58g biscuit?

1. Rs 10 2. Rs 15 3. Rs 20

Which is your favourite biscuit brand?

1. Brittania 2. ITC 3. Parle

Would you like to try this new variant of brittania ( nuts and cookies )

1. Ofcourse 2. Maybe 3. Never

How much would you like to pay for a 60g of Nuts & Cookies ( considering it as a superior

quality product)

1. Rs 10 2. Rs 15 3. Rs 20

What price variant of Good Day Nuts and Cookies would you prefer to buy ?

1. Rs 10 2. Rs 20 3. Rs 40


REFERENCES

www.economictimes.com

www.britannia.co.in

www.wikipedia.org

http://www.economictimes.com/

http://www.britannia.co.in/

http://www.wikipedia.org/

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