CHOCOLATE INDIA
Group 10
Arun
Po o j a
Pr a d e e p
Sharan
Soumyarup
134
153
156
165
172
CAGR
Expected
Revenue
Figures
INR 6.5 bn
12%
INR 11 bn
(by 2014)
Volume Figures
193 mn kg
6%
264.4 mn kg
(by 2016)
35% of total confectionery consumption supplied by unorganized
sector
Share
20%
46%
34%
Chocolate
Sugar
Candies
Gums
Growt
h
Range
(Rs.)
Outlet
s
Chocolate 20%
2 - 10
1.7 mn
Candy
5%
0.5 - 1
5 mn
Gum
9%
1-5
5 mn
CCI
(salespeople)
Distributo
r
Served underserved
outlets, offered
promotion schemes
Wholesal
er
Retailer
CUSTOM
ER
CCI
Distributors
,
CUSTOM
Wholesaler
ER
s, Retailers
Max. cost: INR 5,00,000 per salesperson per
year
CURRENT SCENARIO
1500
urban
distributo
rs
50 super
stockists
1800 sub
stockists
>500,00
0 outlets
PROBLEM IDENTIFICATION
To have a cost effective and efficient Route-tomarket model that increases penetration in rural
market
ALTERNATIVES
Option 1:
Option 2:
Option 3:
Option 4:
Option 5:
Traders
Option 6:
Superstockist Model
Haats
Van Sales
Micro entrepreneurs SHGs
Micro Entrepreneurs Mobile
Tie-Up with India Post
Existing Required
1466
2495
1800
3065
0.81
50
85
50
85
25
42.5
Number of Villages
Targeting
Total Villages
Villages with >16 retailers
>10000 :villages/substockist
Average Population of a village
<10000: Villages/Sub-stockist
(assumption)
Sub-stockists required
Superstockists
Sales person
Cost for company (million Rs.)
Existing
593615
50%
296808
148404
0.81
1183
So, use this model to expand only in villages with pop >10,000
7
21555
599
599
299.4
Villages
>10000
3961
60
66
12000
792200
4
0.6
0.47532
Villages
<10000
593615
20
29681
5600
166212200
4
0.6
99.73
Expenditure on Activations
Van cost/day
Total days for Large Haats (1 van for 1 Haat)
Total days for Small Haats (1 van for 3 Haats)
Haats accessible by road
Total Haats covered by vans
Total activation cost/week (in mn Rs.)
3500
66
9894
3265
3331
12
Mobile Trader
7
Target
1.0%
Targeted SHG
0.07
2000
140
Cost/month
Total villages
Do not have roads
Villages covered
Villages covered/month
No. of mobile traders
Cost of mobile traders (million
Rs.)
1500
593615
67%
391786
54
7255
11
FINAL RECOMMENDATION
Villages > 10,000
pop
RTM
Activatio
n
Superstockist
model & Haats
Haat
Van models in
Haats
Van model
Without roads
(67%)
Mobile
traders