A Project Report On THE STUDY ON VISUAL MERCHANDISING IN BRITANNIA INDUSTRIES LTD. AND ITS IMPACT ON SALES.

A Project Report Submitted in Partial Fulfillment forthe Award Of POST GRADUATE DIPLOMA IN MANAGEMENT (Batch 2010-2012)

Submitted By: Sangram Kumar Dash Registration No. 6073

Submitted To: Prof. Bharat Bhusan Singh

Director Academics:Dr. Sabyasachi Rath

DECLARATION
I Sangram Kumar Dash hereby declare that the project titled The Study on visual merchandising in BRITANNIA INDUSTRIES LTD. and its impact on salesis an original work carried out under the guidance of Prof.Bharat Bhusan Singh. The report submitted is a bonafide work of my own efforts and has not been submitted to any institute or published before.

Signature of the student Sangram Kumar Dash Registration No- 6073 Date: Place: Hyderabad

CERTIFICATE
I Prof. Bharat Bhusan Singhcertify Mr. /Mrs.Sangram Kumar Dash, Registration No. 6073that the work done and the training undertaken by him/her is genuine to the best of my knowledge and acceptable.

Signature: Date:

ACKNOWLEDGEMENT
It is with a sage sense of gratitude, I acknowledge the efforts of whole hosts of wellwishers who have in some way or other contributed in their own special ways to the success and completion of this summer internship project. I express my sage sense of gratitude and indebtedness to my Director,AcademicsDr. SabyasachiRath of VishwaVishwani Institute of System and Management, Hyderabad, from the bottom of my heart, for his unprecedented support and faith that I do the best and his valuable recommendation and for accepting this project. Further I express my sage sense of gratitude to Mr. Dipesh Kale, Area Sales Manager (BIL, Hyderabad) who was kind enough to give an opportunity to work under his immense expertise. I sincerely thank to him for his valuable suggestions, motivation and encouragement. I express my sense of gratitude and indebtedness toProf. Bharat BhusanSingh ,for his unprecedented support and faith that I do the best and his valuable recommendation and for guiding me in this project. I would be failing in my duty if I dont express my profound gratitude to the entire respondent who has spent their valuable time to answer the questionnaire.

Last but not the least; I would also like to expand my thanks to all faculty members of VishwaVishwani Institute of System and Management, Hyderabad, who have helped a lot during the course of my project.

I also extend my heartfelt thanks to my family.

TABLE OF CONTENTS:

Chapter. No.
Chapter 1 Chapter 2

Content

Introduction Industry Profile Company Profile Literature Review

Pag e No. 1-10 1151

Chapter 3

Research methodology Data collection Analysis&Interpretatio n Findings Recommendations Conclusions

5258 5968 6973

Chapter 4

Chapter 5

Bibliograph y

Books/ Articles referred Websites referred Sample Questionnaire

7475 76

Annexure

Chapter-1 Introduction

[1]

INTRODUCTION
A successful FMCG business requires that a distinct and consistent image be created in the customers mind that permeates all product and service offerings. Visual merchandising can help in creating positive customer image that leads to successful sales. It not only communicates the stores image, but also reinforces the stores advertising efforts and encourages impulse buying by the customer. Visual merchandising is a major factor often overlooked in the success or failure of a retail store. It is second only to effective customer relations.

Visual merchandising can be defined as everything the customer sees, both exterior and interior, that creates a positive image of a business and results in attention, Interest, desire and action on the part of the customer. A story can be told that communicates to the prospective customer what the store is all about. It includes the dramatic presentation of merchandise as well as other important features that create the stores overall atmosphere.

Eighty per cent of the impressions are created by sight; that is why one picture is worth a thousand words. Each customer has a mental image of a store and its merchandise. A store should have an inviting appearance that makes the customer feel comfortable and yet eager to buy. Some businesses maintain minimum staffs to reduce costs, which mean it is even more important for the merchandise to sell itself. Greater effort must be spent on merchandise displays that make it easier for the customer to find and purchase the items they want or need.

The basic objective for visual merchandising in FMCG sector is to create desire to attract customers to a place of business in order to sell the merchandised products. Visual merchandising is offered to the Customer through exterior and interior presentation. Each should be coordinated with the other using the stores overall theme. Creating and maintaining a stores visual merchandising plan, however, is not a simple task. It is necessary to continually determine what the customer sees.
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Objective of the study:All companies are having their own planning and business strategies but the company who ishaving the best, is the most successful company among its competitors. So the company can getsuccess within its competitors by applying best and effective marketing strategies. To identify the visualize merchandising and product image in market. To know the offers to customer, retail outlets and competitors offer given to customer retail outlets. To know the impact of merchandising. To know the brand preferences by the customers. To track the sales in the particular beat.

Scope and the Limitation of the study

The scope of study is limited to the respondents are selected from in and around Hyderabad and secunderabad region. The project is carried out for the period of 45 days only. The sample unit was also 100 respondents. However, retailer outlets owners and people looking for new cars are located in other places i.e.locally and even in neighboring states. Only opinion of respondents of Hyderabad city was consider for finding out the opinions of respondents.

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Facility of visual merchandizing in FMCG:

Visual merchandising starts with the store building itself. The management decides on the store design to reflect the products the store is going to sell and how to create a warm, friendly, and approachable atmosphere for its potential customers. Many elements can be used by visual merchandisers in creating displays including colour, lighting, space, product information, sensory inputs (such as smell, touch, and sound), as well as technologies such as digital displays and interactive installations. Visual merchandising is one of the final stages in trying to set out a store in a way that customers will find attractive and appealing and it should follow and reflect the principles that underpin the stores image. Visual merchandising is the way one displays 'goods for sale' in the most attractive manner with the end purpose of making a sale. "If it does not sell, it is not visual merchandising." Especially in todays challenging economy, people may avoid designers/ visual merchandisers because they fear unmanageable costs. But in reality, visual merchandisers can help economise by avoiding costly mistakes. With guidance of a professional, a retailer can eliminate errors, saving time and money. It is important to understand that the visual merchandiser is there, not to impose ideas, but to help clients articulate their own personal style. Visual merchandising is the art of implementing effective design ideas to increase store traffic and sales volume. VM is an art and science of displaying merchandise to enable maximum sale. VM is a tool to achieve sales and targets, a tool to enhance merchandise on the floor, and a mechanism to communicate to a customer and influence his decision to buy. VM uses season based displays to introduce new arrivals to customers, and thus increase conversions through a planned and systematic approach by displaying stocks available.

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Comparison of todays merchandising process with the future era in FMCG sector:

Fig-1.1 Many of the processes weve highlighted in the above diagram have been historically considered traditional practices for General Merchandise and Apparel retailers, while those selling Fast Moving Consumer Goods were traditionally more interested in market basket analysis, boosting average transaction value with loyalty programs, and managing within any given category.

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Fig-1.2 Here we find FMCG will have achieved parity, or in some cases actually leapfrogged their GMA cousins in merchandise processes. Thus, we find in 21stCentury merchandising: FMCG outlets will cross best practices across all segments, looking for similarities and opportunities along with the more obvious differences.

[6]

Model of buying behavior by creating impulse in the mind of consumer in FMCG sector through

merchandising:

Fig-1.3 In the above model it simplifies that how merchandising creates impulse in the mind of customer. First when a customer enters into a FMCG outlet then he first thinks about his need. Then he sees various alternatives in this context the marketer should create the marketing of product by showing him various products in the display. Here in this step the product which looks good from outside or the product which kept sequentially with the help of merchandising this product can only able to create impulse in the mind of customer. Then only the customer buys this product without bothering about any other product.
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Impact of merchandising on FMCG product:

Fig-1.4 In the above diagram it shows that the merchandising affects is high in the product categories like snacks, chocolates and candies and biscuit.

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Increasing Impact of Merchandising on Product Purchase:

Fig-1.5 The above pyramid shows that the high effect of merchandising on product group like chocolates and candys, biscuits and snacks. Then the medium effects merchandising on the product group like personal care, home care, hair care, food items and others. The very low effects of merchandising on product group like beverage and milk products. There is no effect of merchandising on the product group like milk, oil & ghee, spices and tea &coffee.

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Various Kind of impact through visual merchandising:

Fig-1.6 Here in the above model it shows the various impact of visual merchandising on the consumer. First merchandising creates impulse buying by which the customer wants to buy more and more. It is also help in brand preference by the customer through merchandising.

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Chapter-ii

Industry profile, Company profile and Litereture review

[11]

Introduction about FMCG industry:

Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year, examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, and tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. The volume of money circulated in the economy against FMCG products is very high. Number of products the consumer use is very high, competition in the FMCG sector is very high resulting in high pressure on margins. FMCG companies maintain intense distribution network, companies spend a large portion of their budget on maintaining distribution networks. New entrants who wish to bring their products in the national level need to invest huge sums of money on promoting brands. Manufacturing can be outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper imports; also the market is more pressurized with presence of local players in rural areas and state brands.

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Characteristics of FMCG industry:

From the consumers' perspective:

Frequent purchase Low involvement (little or no effort to choose the item -- products with strong brand loyalty are exceptions to this rule)

Low price

From the marketers' angle:

High volumes Low contribution margins Extensive distribution networks High stock turnover

Scope of FMCG industry:

The term FMCG refers to those retail goods that are generally replaced or fully used up over a short period of days, weeks, or months, and within one year. This contrasts with durable goods or major appliances such as kitchen appliances, which are generally replaced over a period of several years. FMCGs have a short shelf life, either as a result of high consumer demand or because the product deteriorates rapidly.

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FMCG industry in Indian perspective:

Indias FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. Its principal constituents are Household Care, Personal Care and Food & Beverages. The total FMCG market is in excess of a high growth. It is currently growing at double digit growth rate and is expected to maintain a high growth rate. FMCG Industry is characterized by a well-established distribution network, low penetration levels, low operating cost, lower per capita consumption and intense competition between the organized and unorganized segments. Market share movements indicate that companies such as Marico Ltd and Nestle India Ltd, with domination in their key categories, have improved their market shares and outperformed peers in the FMCG sector. This has been also aided by the lack of competition in the respective categories. Singleproduct leaders such as Colgate Palmolive India Ltd and Britannia IndustriesLtd have also witnessed strength in their respective categories, aided by innovations and strong distribution. Strong players in the economy segment like Godrej Consumer Products Ltd in soaps and Dabur in toothpastes have also posted market share improvement, with revived growth in semi-urban and rural markets.

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Overview Indian FMCG Sector:

FMCG Industry is expected to have a market of 40,000 crore by 2020 according to ministry of food. Fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. Strong MNC presence and is characterised by a well-established distribution network, intense competition between the organised and unorganised segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc. in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry.

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FMCG Category and products:

Category Household Care Products Fabric wash (laundry soaps and synthetic detergents); (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, repellents, metal polish and furniture polish). insecticides and mosquito household cleaners

Food and Health beverages;

soft drinks; staples/cereals; Beverages bakery products (biscuits,

bread, cakes); snack food; chocolates; ice cream; tea; coffee; soft drinks; processed fruits, vegetables; dairy products; bottled water; branded flour; branded Rice; branded sugar; juices etc.

Personal Care

Oral care, hair care, skin care, personal wash (soaps); deodorants; Perfumes; products. feminine hygiene; paper cosmetics and toiletries;

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Factors affecting Indian FMCG industry:

Large domestic market India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in terms of purchasing power and has a strong middle class base of 300 million.

Rural and urban potential Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total number of rural households is expected to rise from 135 million in 2001-02 to 153 million in 2009-10. The Indian rural market with its vast size and demand base offers a huge opportunity for investment. Rural India has a large consuming class with 41 per cent of Indias middle-class and 58 per cent of the total disposable income. With population in the rural areas estimated to have risen to 153 million households by 2009-10 and with higher saturation in the urban markets, future growth in the FMCG sector will come from increased rural and small town penetration. Technological advances such as the Internet and ecommerce will aid in better logistics and distribution in these areas.

The rural and urban profile is given below:-

Tab-2.1

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Exports: India is one of the worlds largest producers of a number of FMCG products but its exports are a very small proportion of the overall production. Total exports of food processing industry were $6.9 billion in 2009-10. Though the Indian companies are going global, they are focusing more on the overseas markets like Bangladesh, Pakistan, Nepal, Middle East and the CIS countries because of the similar lifestyle and consumption habits between these countries and India.

India - a large consumer goods spender: An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India one of the largest FMCG markets. Even on an international scale, total consumer expenditure on food in India at US$ 120 billion is amongst the largest in the emerging markets, next only to China.

Change in the Indian consumer profile: Rapid urbanisation, increased literacy and rising per capita income, have all caused rapid growth and change in demand patterns, leading to an explosion of new opportunities. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mind set.

Demand-supply gap: Currently, only a small percentage of the raw materials in India are processed into value added products even as the demand for processed and convenience food is on the rise. This demand supply gap indicates an untapped opportunity in areas such as packaged form, convenience food and

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drinks, milk products etc. In the personal care segment, the low penetration rate in both the rural and urban areas indicates a market potential. The Structure: The Indian FMCG sector is the fourth largest sector in the economy and creates employment for three million people in downstream activities. Within the FMCG sector, the Indian food processing industry represented 6.3 per cent of GDP. A distinct feature of the FMCG industry is the presence of most global players through their subsidiaries (HLL, P&G, Nestle), which ensures new product launches in the Indian market from the parent's portfolio.

Critical operating rules in Indian FMCG sector:

Heavy launch costs on new products on launch advertisements, free samples and product promotions. Majority of the product classes require very low investment in fixed assets Existence of contract manufacturing Marketing assumes a significant place in the brand building process Extensive distribution networks and logistics are key to achieving a high level of penetration in both the urban and rural markets Factors like low entry barriers in terms of low capital investment, fiscal incentives from government and low brand awareness in rural areas have led to the mushrooming of the unorganised sector Providing good price points is the key to success.

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Market size of FMCG industry in India:Fast moving consumer goods (FMCG) sector in India is one of the largest sectors in the economy with estimated total market size of around Rs 110,000 crore in 2010. After sluggish growth for couple of years through 2002-2004, the segment has picked up the speed again and has been clocking substantial growth numbers during last 5-6 years. The sector also continued to do reasonably well following the global financial crisis as the rural India, which has become the new demand heaven for the industry, remained largely aloof from the slowdown. With the Indian economy now back on the high growth trajectory, the industry has massive potential to grow further, particularly in rural Indian and the high end products as expected size will be around RS180 crore in 2015. FMCGs growth story started the deregulation of Indian economy in early 1990s which saw dismantling of the license raj, resulting in a spurt in new companies and entry of a number of foreign brands. With relatively lesser capital and technological requirements, a number of new brands emerged domestically as well while the relaxed FDI conditions led to induction of many global players in the segment. Both these factors resulted in leading to rapid development of the FMCG market in India.

Fig-2.1
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Segment of Indian FMCG industry:Indian FMCG sector is characterized by strong presence of multinational companies. The segment of Indian FMCG industry has various segments like personal care, household, food products etc. Compared to other manufacturing sectors, FMCG is relatively much less capital-intensive. But the sector demands high expenditure on branding and distribution. Most companies in the sector create value through product differentiation, package innovation, and differential pricing and highlighting the functional aspect of their products.

Fig-2.2 Here we can see in the above pie chart it shows that the other segment occupied 43% whereas hare care, over the counter (i.e. drug), household, food products, personal care, baby care, fabric care occupied 8%, 4%, 4%, 5%, 22%, 2%, 12% respectively.

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Key players in Indian FMCG sector:-

Hindustan Unilever Ltd Indian Tobacco Company Nestle India GCMMF (Amul) Dabur India Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries

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Brief introduction of the key players

Hindustan unilever LTD.:

Earlier known as Hindustan Lever Limited It was formed in 1933 as Lever Brothers India Limited. Headquartered in Mumbai, HUL is the market leader in Indian products such as tea, soaps, detergents etc. The companys statement of corporate purpose is to meet the everyday needs of people, everywhere. The company was renamed in late June 2007 to "Hindustan Unilever Limited, to provide the optimum balance between maintaining heritage of the company and future benefits.

ITC LTD: ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianite, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agribusiness, Foods, Lifestyle Retailing, Education & Stationery and Personal Care.

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Nestle India:
The journey of Nestle India began in the year 1912 in the name of the Nestle Anglo-Swiss Condensed Milk Export Company Limited. It deals with selling and importing finished products in Indian market. The company is one among the top wealth creators of India. The company is manufacturing Indian Consumer products with international standards.

GCMMF (Amul):
GCMMF stands for Gujarat Cooperative Milk Marketing Federation. The company aims at offering good returns to the farmers and at fulfilling the requirements of consumers by offering them quality products. Theproducts offered by GCMMF, Amul range of products is the most famous and millions of people in India use Amul products. Some of the products of Amul include Amulya, Amul Milk, Nutramul, Amul Ice Cream, AmulShirkhand, Amul Chocolates, Amul Cheese,

Dabur India:
Dabur India deals with personal and health care products.The recent turnover of this company is Rs. 1899 crores. The company is divided into two major strategic business units being consumer health division and consumer care division. The company has manufacturing units in different countries and some of their popular brand products are Daburlaldantmanjan,

daburchyawanprash, daburamla, hajmola, anmol, vatika and Dabur red tooth paste.
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Cadbury India:
Cadbury came into India in the year 1948 by importing consumer good namely chocolates. They were dealing only with importing chocolates in different parts of India like Himachal Pradesh, Bangalore, Gwalior, Pune and Mumbai and sales offices at Chennai, New Delhi, Kolkata and Mumbai. Some of their popular products are Cadbury diary milk, celebrations, clairs, perk and 5 star and they are also popular for their milk drink bournvita.

Britannia Industries:
Britannia came into market in 1892 in Kolkata. Britannia industries are dealing with manufacturing of products like milk, butter, cheese, cakes, rusk, bread and the popular Britannia biscuits. Some of their popular branded biscuits are tiger, milk bikis, good day, pure magic, maskachaska, treat and marie gold.

Procter & Gamble:

Procter & Gamble deals with manufacturing of household cleaner, pet food and personal care products. This company is shortly called as P& G and this company is a parent company of some popular companies like Global Gillette and Clariol. Some of their popular health care products are Vicks inhaler, Vicks formula 44 cough syrup, vicks cough drops, Vicks VapoRub and Vicks Action 500+, whisper etc.

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Marico Industries:
Marico Industries is a leading Indian company manufacturing and exporting consumer products to different countries like SAARC Countries, Egypt, the Middle East, Bangladesh, UAE and the USA. During 2010-11, Marico recorded a turnover of Rs. 31.3 billion through its products and services sold in India and 25 other countries in Asia and Africa. Some of their popular products are Parachute, Revive, Shanti, Saffola, and Mediker.

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Swot Analysis of FMCG industry:-

Strengths:
Well-established network areas. extending distribution to rural

Weaknesses:
Low export levels.

Strong brands in the FMCG sector.

Small

scale

sector

reservations limit ability to invest in technology and

achieve economies of scale. Low cost operations Several "me-too products.

Opportunities:
Large domestic market.

Threats:
Imports

Export potential

Tax and regulatory structure

Increasing income levels will result in faster revenue growth.

Slowdown in rural demand

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Indian FMCG Sector Trends:

In this post i have covered multiple trends happening in the Indian FMCG sector.

Focus on Health Companies are widening their health food portfolio to cash in on the rich, urban, health conscious Indian. In recent we have seen flurry of products in this segment. Have a look of some of them: Sugar free Chywanprash butter Lite (Nutralite) Corn Flakes/ Oats Lays (40% less saturated fats) Snack Smart Low Calorie Sweetners

Impact of Inflation: The expenditure of FMCG in the consumer's wallet is coming down year on year. This is leading to low sensitivity with price increases. Almost a decade back people use to down trade from expensive brands to value for money ones. But now the trend is changing. Consumers are not switching to cheaper substitutes. Rather companies have come with lower quantity SKUs and make consumers switch from higher to lower SKUs and not from premium to popular brands (like Dove to Lux International). Just to give you an example, Henkel instead of increasing the price of their Henkel detergent from Rs. 46 to Rs. 50, they have launched a new SKU of 400gms for Rs. 40. During the time of inflation, people shift to sachets of their brands. Sales numbers of FMCG companies are quite robust.

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Micro Segmentation/ Niches: Its interesting and funny to see that companies are not leaving any opportunity to micro segment the market. I can foresee that we are here to see further segments in different categories. Here are some examples: Age Sex Horlicks a) Junior Horlicks b) Male Specialized Cleaners a) b) Chyawanprash Junior Womens a) Kitchen Cleaner: Mr. Household

Muscle fairness b) Power Cleaner (Rust):

c) Pepsodent Barbie for cream Kids/ Strawberry Colgate

Easy Off Bang

Low value SKUs: We all know that it all started in 1980's with shampoos. I think Nano is an interesting example of an automobile sachet. Here is a small list of sachets: Shampoos Butter (Munna Pack) Hair Oils (Navratan ThandaThanda Cool Cool) Noodles (Chotu Maggi) Jet Age Consumer Products: Because of changing lifestyles, busy jobs etc. marketers are coming up with Jet Age consumer products. Ready to Eat a) Corn Flakes/ Oats b) Pastas c) Biscuits d) Noodles e) Pizzas f) Burgers Ready to Drink a) Energy Drinks b) Non-Cola Drinks (Juices) Ready to Cook a) Cut Vegetables b) Soups c) Parathas/ Roti d) Snacks

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Under-penetrated Growth Categories: Barring few main mainstream categories, there are number of FMCG categories with low penetration are Mens grooming products Skin care & Cosmetics Anti-aging solution Shampoos Toothpaste Deodorants

Low Per Capita Consumption: Currently we are nowhere near to other developing countries in terms of per capita consumption. Be it Laundry, Skin Care, Shampoos or deodorants. Marketers have put in efforts to increase the consumption frequency or quantum of consumption per occasion. Colgate started the "twice a day" campaign few years back. Recently we have Good Night coming up with Double power pack. Per Re1 increase in per capita consumption of a category will lead to growth of more than 100 crores.

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COMPANY PROFILE History: The story of one of India's favourite 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 beginnings might have been humble-the dreams were anything but. By 1910, with the advent of electricity, Britannia mechanized 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. As time moved on, the biscuit market continued to grow and Britannia grewalong with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmlyestablishing the Indianness of the firm. Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark. On the operations front, the company was making equally dynamic strides. In o 1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its newcorporate identity - "Eat Healthy, Think Better" and made its first foray into the dairy products market. In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified the affinity consumers had with 'Brand Britannia'. Britannia strode into the 21st Century as one of India's biggest brands and the preeminent food brand of the country.

PROFILE
Type Industry Founded Headquarters Key people Products public Food 1892 Kolkata Nusliwadia (Chairman), Vinita wali (MD) Biscuits, Dairy, Bakers and Rusks
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MISSION
To Make Every Third Indian a Britannia Consumer.
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 Whitener. The company has to constantly endeavour 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.

BUSINESS STRUCTURE
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.

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PRODUCTS PROFILE:
Tiger:-

Tiger, launched in 1997, became the largest brand in Britannia'sportfolio in the very first year of its launch and continues to be so tilltoday. Tiger has grown from strength to strength and the re-invigoration in June 2005 and more recently, in Apr 2008 has furtherhelped bolster its growth in the highly competitive glucose biscuitcategory.Tiger is a Glucose biscuit, which comes with the added goodness ofwheat and milk. It is for modern mothers who play an enabling rolefor their children to compete in today's world and thus want thebest. Now Tiger Glucose has been fortified with "Iron Zorn" with an Tiger Coconut: Delicious Coconut Flavored Energy Biscuits,launched in 2000.

Tiger Creams: Was introduced in 2002 at just Rs 5 per pack. TigerCream is now available in Orange, Elaichi, Chocolate, Pineapple,Strawberry and Butterscotch flavors, and promises to bring morefun and more energy to children across the country. ChotaTiger : Is an extension of brand Tiger launched nationally inMay, 2007. It is mini sized poppable glucose biscuit with colouredsugar sprinkling. It comes in two variants: Milk Sparkies and ChocoSparkies

IRON ZOR helps make mind sharper and body stronger. A Rs.4 packhas as much IRON ZOR as that in 1 kg of Banana.R&D in Britannia has spent considerable time to develop thisnutritious and delightful snack for children.Britannia Tiger Banana packed with IRON ZOR and goodness ofBanana is accessible to all, being available in convenient packspriced at Rs.2, Rs.4 and Rs.10.

Good Day:
[33]

Britannia Good Day was launched in 1986 in two delectable avatars- Good Day Cashew and Butter. Over the years, new variants wereintroduced - Good Day PistaBadam in 1989, Good Day Chocochipsin 2000 and Good Day Choconut in 2004.This rich cookie enjoys a fan following of consumers across all ages,loyal to the brand promise of a great taste, evident from the visiblyabundant ingredients. Good Day is among the fastest growingbrands in Britannia's portfolio and it has been the leader in thecookies category ever since its launch. The brand is synonymouswith everyday treats that infuse happiness into people's lives.After two decades of magnificent success; it was time to give thenation yet another reason to have a good day. Abundance, goodness, indulgence and now unrestrained joy - that is themessage of this new campaign.The new TT ad is the uncontrollable expression of the

ticketcollector's happiness and joy that is stimulated by consumption ofthe cookie, that spreads cheer amongst the people around himcreating an atmosphere of shared joy that's unorchestrated andstraight from the heart. The celebration was taken to the IPL asGood day cheered along with a million cricket fans in the stadiums,each screaming and proclaiming "Ho gaya re Good Day". Thedazzling brilliance of this endeavour, the contagious rhythm needsto be lived and spread through the nation, making 'Iskatoh hoGaya Re Good Day' a part of the common lingo and a way of life.Good Day truly believes laughter and happiness are infectious, ittranscends race, caste creed unifying humanity in an inclusiveemotion. The brand perseveres to infuse cheer, hearten the nation and enliven lives. With its rightful place on the front page of The Timesof India, Good Day gifts the nation a priceless treasure, that ofspreading JOY!

Bourbon:
[34]

Thick, rich and delicious chocolate packed between two crunchychocolate biscuits, topped with sugar crystals - presenting, theoriginal Bourbon, from the house of Britannia.India's first and favorite Bourbon's sweet adventure began in 1955.Since then, Bourbon lovers across the country have been caughtopening this chocolate couplet, licking the cream, and nibbling atthe melt-in-your-mouth biscuit, bit by bit. Some have beenwitnessed chomping it whole, at one go. Some have been noted toalternate it with sips of coffee; others team it with lots of gossip andgupshup, while a few have been observed enjoying it with a book.And some have been seen reluctantly sharing their Bourbon.Whatever the occasion, wherever the hangout, Bourbon makes forgreat company. You can grab your very own Nano Pack or a PocketPack. The Hangout Pack is just right for chilling with friends. Takealong a Party Pack for... yes, a party! And the Gift Pack will surelywin you a few brownie points! RUSK:

Britannia launched its rusks in the year 2005. In a Market full ofunbranded players, Britannia rusks have stood head and shouldersabove the rest in terms of sheer quality .They are made from thefinest ingredients and baked with care as they are twice as crisperas and tastier than ordinary rusks. The communication for thismouthwatering offering is aptly Enliven your spirits with Britanniarusks. Cakes:
[35]

Britannia entered the cake market in the year 1963 and is the leading player in the market. Britannia Cakes range is divinelyscrumptious and has Bar Cakes, Chunk Cakes and Cup Cakes whichwere launched in 2005. Bar Cakes are available in variants thatinclude Fruit, Butter Sponge, Chocolate, Pineapple, Milk, VanillaChocolate and Orange. Apart from being delicious, these snacks arepacked with healthy ingredients making them wholesome &delightful.Britannia cup cakes come in vanilla and orange and mixed fruitflavors whereas chunk cakes come in fruit flavor.Britannia has recently launched for the 1st time ever in thepackaged segment Veg Cakes, pure and eggless. These VegetarianCakes are soft, juicy and filled with real fruit bits which can beenjoyed just by themselves or mixed with a variety of ingredients tomake quick, delicious desserts. With zero cholesterol andhygienically packed for a shelf life of 3 months, they are a morewholesome and healthy option than other sweet dishes available inthe market.Britannia Veg Cakes come in Twisty Fruity avatar and are priced atRs 10/- for a 75 gram pack. They enjoy a 3 month shelf life.

Marie Gold:

Britannia's oldest brand enjoys a heritage that spans the last 50years - and going strong. In a market swamped with me-tooproducts and where even the name 'Marie' has become generic,Britannia Marie Gold has maintained its stronghold. Today, the ever-popular Marie Gold is synonymous with the 'Tea Time Biscuit'. Itstaste, crispiness and lightness make it a must for every tea break. Itis the #1 brand in its category by a long shot.

BRITANNIA 50-50:
[36]

With a brand name like 50-50, can the product be anything but fun? Launched in 1993, 50-50 belongs to the family of crackers and is considered the "very very tasty tasty" snack.

Britannia 50-50 is the leader in its category with more than one-third of market share. The versatile and youthful brand constantly aims to provide a novel and exciting taste experience to the consumer. As a result, in 2001, the delicious Maska Chaska was launched as a variant of the original brand and became an instant success.

Little hearts:

Little Hearts was launched in 1993 and targeted the growing youth segment. A completely unique product, it was the first time biscuits were retailed in pouch packs like potato wafers. The launch message introduced a special taste experience that made the unlikeliest characters - like Dracula and Frankenstein - melt. In 1997, the 'Direct Dil Se' campaign encouraged youngsters to openly express their feelings. And in 2003, two variants called Little Hearts Chocolate and Little Hearts Sesame were rolled out with a campaign "Dilsabka actually sweet hai". With Little Hearts, Britannia has tasted the sweet taste of success.

[37]

Treat:

As a move to consolidate all the individual Cream Treat offerings under a single umbrella, Britannia launched Treat in 2002. Treat has a range of tasty delights for all kids with yummy creamy treasures within the biscuit shells. The kids have always relished unraveling the irresistibly delicious creams hidden inside the biscuit Britannia Treat offers a wide variety of flavors, such as the Elaichi, the Fruit Flavored Creams such as Orange, Pineapple, Mango, and Strawberry, the Jam Filled Centers under the Jim Jam range, and the Duet Range (biscuits with two flavours of cream between three layers of biscuit) comprising Strawberry Vanilla and Duet Strawberry Chocolate.

Britannia Treat has now launched yet another mouthwatering delight under its umbrella. The delicious Fruit Rollz take the Treat brand beyond the cream biscuits and provides yet another lip smacking delight to its consumers. Fruit Rollz are soft rolls filled with the goodness of real fruits, and provide a healthy yet scrumptious treat to our 'loveable devils' Treat also introduced its naughty and adorable brand mascot FUNTOOSH whose primary occupation is mischief FUNTOOSH is the guy who will pull off any trick to make sure he gets to eat his Britannia Treat. For all you kids who have relished the yummy treasures of Britannia Treat in exciting flavors, look out for yet another reason to celebrate! Britannia Treat launches a new and exciting combination of chocolate and caramel in a single bar - TREAT CHOCO GELO. This unique and never before product is guaranteed to double the masti and double the fun that you have with Treat. So go ahead, open this delicious pack, indulge yourself with Treat Choco Gelo and enjoy Yummy Chocolate and Gooey Caramel for "Double Mastika Double Dose"
[38]

Board of members:Name Mr. Nusli Neville Wadia Ms. Vinita Bali Mr. A.K.Hirjee Dr. AjaiPuri Mr. Avijit Deb Mr. Jeh N Wadia Mr. KekiDadiseth Mr. Nasser Munjee Mr. Ness NusliWadia Mr. Nimesh N Kampani Mr. PratapKhanna Mr. S.S.Kelkar Dr. Vijay L. Kelkar Designation Chairman ManagingDirector Director Director Director Director Director Director Director Director Director Director Director

Corporate Bodies:Name ANURADHA NARASIMHAN ASHOK KUMAR GUPTA GAUTAM BANERJEE R K AGRAWAL R. ANAND SHALINI DEGAN T S VENKETRAM VINOD MENON BALAJI REDDIPALLI N. VENKATARAMAN SHRIDHAR PANSHIKAR KAILASH KAKANI B. PRASHANTH Dr. K.N. SHASHIKANTH VALIVETI V PADMANABHAM P. GOVINDAN Designation Category Director - Health & Wellness General Manager - Accounts & Planning General Manager - Materials Supply Chain Director for New Business Development Business Operations Director Category Director - Delight & Lifestyle General Manager - Engineering Projects & Technology Head - Dairy Business Head Replenishment General Manager - Commercial National Sales Director Head of Manufacturing Operations Head of R&D Head - Corporate Quality Head - Corporate IT Company Secretary & Head of Legal

[39]

MANAGEMENT HIERARCHY:

COMPETITORS:

Parle Products Pvt. Ltd: Established In 1929, company has factories in Mumbai, Bangalore, Bahadurgarh in Haryana and Neemrana in Rajasthan, Additionally, Parle Products also has 7 manufacturing units and 51 manufacturing units on contract. Company has about approximate market share of 30-35% of the total biscuit market. ParleG accounts for the major volume turnover it accounts for approximately 80% of the total biscuit tonnage for the company. Key Products : Parle - G , Hide and Seek ,Krackjack ,Hide & Seek Milano ,Magix ,Digestive Marie ,Monaco ,Parle Marie ,Kreams ,Milk Shakti ,Parle 20-20 Cookies ,Golden arcs ,Nimkin ,Kreams Gold ,Chox ,Monaco Jeera

Surya Food & Agro Ltd : Manufacturing & selling of biscuits under brand Priyagold. Company has three plants located in Greater Noida, Lucknow&Surat. They also outsource some of our requirements to another plant located in Hyderabad. Capacities have reached 1, 50,000 MT p.a.

[40]

Key Products : Classic Cream , Butter Bite ,Kids Cream ,Bourbon ,Big Boss ,Marie Lite ,Magic Gold ,CNC ,Cheese Cracker ,Snacks ZigZag ,Don ,Coconut Crunch ,Cheez Bit Classic Salt ,Chatpata

ITC Ltd: In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and Cream Biscuits. Sunfeast with a current market share of ~10% is now clearly established as a credible third brand. Key Products : Sunfeast Milky Magic ,Sunfeast Marie Light ,Sunfeast Golden Bakery ,Sunfeast Dark Fantasy ,Sunfeast Dream Cream ,SunfeastSnacky ,Sunfeast sweet 'n salt ,Sunfeast Nice ,Sunfeast Benne Vita Flaxseed Biscuits ,Sunfeast Special

Anmol Biscuits Ltd: Anmol is a popular brand of eastern & northern region, having manufacturing facilities in W.B & U.P. Key Products : Lemon Mazaa , Funfill Choco Vanilla , Yummy - Milk Cream , Tip Top KajooKurkure Masala, Coconutty , Thin Arrowroot , Marie,2 in 1, Butter

Market share of Britannia: Britannia Industries Limited is an Indian company based in Kolkata that is famous for its Britannia and Tiger brands of biscuit, which are highly recognized throughout the country. Britannia is one of Indias leading biscuit firms, with an estimated 43% market share. The Company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products. company Britannia Parle Sunfeast Priya gold anmol others Market share (%) 43% 37% 19% 11% 8% 23%

[41]

SWOT analysis of Britannia:-

Low price Sizeable market share Variety of products An experienced team of sales Deep and effective coverage Largest distribution system

STRENGTH

WEAKNESS

Improper and irregular supply. Dependent on its flagship brand, Tiger. Poor packaging in glucose biscuits. Lack of schemes for retailers and distributors.

OPPERTUNITY
Retaining loyal retailers or wholesalers. BRITANNIA products in medical shops.

THREATS
Highly advertised brands such as PARLE. Margin war among the major Brands. Increase in sale of cheap local bakery products.

(Source: - made by Mr Sangram Kumar Dash)

[42]

BCG matrix of Britannia:-

Star Stars have high market shares that operate in growing markets. The product at this stage should be generating positive returns for the company. Cash Cow These are products at the mature stage of the lifecycle, they generate high amounts of cash for the company, but growth rate is slowing. Question Mark These are products with low market share but operate in high market growth rates. The company puts a lot of resources in this product in the hope that it will eventually increase market share and generate cash returns in the future. Dogs These are products which have low market shares and low market growth rates. The options for many companies is to phase these products out, however some organisation do go for the strategy ofre-inventing and injecting new life into the product.
[43]

The organizational hierarchy:SALES MANAGER

AREA SALES MANAGER

SALES OFFICER

TERRITORY SALES INCHARGE

PIONEER SALES MANAGER (PSM)-not authorised by co. AND ROUTE SALES ADVISOR (RSA)-for merchandising

Distribution network of Britannia:-

[44]

Achievements of Britannia Industries ltd.:1892 -The Genesis - Britannia established with an investment of Rs. 295 in Kolkata 1910 Advent of electricity sees operations mechanised

1921 - Imported machinery introduced; Britannia becomes the first company east of the Suez to use gas ovens 1939 - 44

Sales rise exponentially to Rs.16,27,202 in 1939 During 1944 sales ramp up by more than eight times to reach Rs.1.36 crore 1975

Britannia Biscuit Company takes over biscuit distribution from Parry's

1978

Public issue - Indian shareholding crosses 60%

1979

Re-christened Britannia Industries Ltd. (BIL) 1983

Sales cross Rs.100 crore 1989

The Executive Office relocated to Bangalore. 1992

BIL celebrates its Platinum Jubilee

1997

Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to new mission: 'Make every third Indian a Britannia consumer' BIL enters the dairy products market 1999

Britannia Khao World Cup Jao" - a major success! Profit up by 37%

[45]

2000

Forbes Global Ranking - Britannia among Top 300 small companies 2001

BIL ranked one of India's biggest brands No.1 food brand of the country Britannia Lagaan Match: India's most successful promotional activity of the year Maska Chaska: India's most successful FMCG launch 2002

BIL launches joint venture with Fonterra, the world's second largest dairy company Britannia New Zealand Foods Pvt. Ltd. is born Rated as 'One amongst the Top 200 Small Companies of the World' by Forbes Global Economic Times ranks BIL India's 2nd Most Trusted Brand 2003

'Treat Duet'- most successful launch of the year Britannia Khao World Cup Jao rocks the consumer lives yet again 2004

Britannia accorded the status of being a 'Superbrand' Volumes cross 3,00,000 tons of biscuits 2005

Re-birth of Tiger - 'SwasthKhao, Tiger Ban Jao' becomes the popular chant! The new plant in Uttaranchal, commissioned ahead of schedule. 2006

Britannia acquires 51% stake in Bangalore-based bakery foods retailer Daily Bread. 2007

Britannia industries formed a joint venture with the KhimjiRamdas Group and acquired a 70 percent beneficial stake in the Dubai-based Strategic Foods International Co. Britannia NutriChoiceSugarOut range introduced - 1st of its kind of biscuits to be launched in India with "No Added Sugar.

2009
[46]

Britannia Industries buys out New Zealand's Fonterra from existing dairy joint venture, Britannia New Zealand Foods (BNZF). BNZF became a 100 per cent Britannia subsidiary and was renamed Britannia Dairy Private Limited (BDPL).

Recognizing the changing global trends & health benefits of removing transfats, Britannia is the first Bakery brand in India to remove Trans fats from its products.

Wadia Group acquired stake holdings from Group Danone and becomes the single largest shareholder in BIL. 2010

Britannia was presented the Master Brand 2010 Award by CMO Council in November 2010. Rotary Club of Chennai awarded CSR Award to Britannia in November, for our work in nutrition. 2011

Britannia received the Most Respected Company Award 2011 from Business world. Bourbon received the Most Popular Confectionery Product Preferred By Youth (Biscuit) Award.

Code of Business Conduct in Britannia:[47]

The reputation that Britannia has built over the years for high ethical standards is one of our greatest business assets. To share the responsibility to preserve and enhance this asset, the company has documented the Code of Business Conduct (COBC) for its employees. Responsibilities of Employees of Britannia:

Maintaining ethical standards, including appropriate accounting controls; Identify, surface and resolve ethical issues with great speed; Corporate assets (physical and intellectual) must not be used for personal benefit;

Workplace Responsibilities:

Being committed to fair employment practices; Being committed to a workplace free from drugs and any kind of harassment or intimidation of employees; to Customers and Other External

Representing Britannia Constituencies:

Treating customers, suppliers and competitors fairly; Maintaining high standards of quality; Speeches, media interviews, and other public appearances in connection with Britannia must first be approved internally;

Privacy / Confidentiality:

Protect proprietary and confidential information at all times in accordance with applicable law; Keep employees' information confidential

Investments and Outside Activities:

Trading in the securities of Britannia or any other company while in possession of "inside" information is illegal;

Avoiding real or perceived conflicts of interest in areas including investments or outside business activities, among others.

Corporate Social Responsibility:

Catering to the national interest Committed to be a good corporate citizen The company prohibits any payment of bribes.

LITERATURE REVIEW:[48]

Digital Displays Marketing

and

Experiential

By: James Barry(source-http://www.isnare.com/?aid=226250&ca=Marketing)

Experiential marketing is achieved by creating an in-store experience that differs from the competition. The theory is that your unique store environment will draw traffic and keep customers coming back. Digital displays have proven to be a highly effective tool for this type of marketing.

A lot of research has gone into determining what makes a good in-store experience. Retailers who succeed in creating a positive experience for their customers focus on the needs of the customers: Make it quick and easy to find what they are looking for. Answer a question and provide information to solve a problem for the customer. Compel customers to visit your store often.

Popup Display Design Tips and Tricks

[49]

By: Rick Hendershot

articles)

(source-http://www.articlesbase.com/marketing-

A Popup Display normally covers the entire back "wall" of your space. This means that a properly designed Popup Display provides you the opportunity to make a bold statement about your company and your most important product or service.

A Popup Display not only serves as a backdrop to your display, but gives your area definition, and allows you to focus attention on a specific image.

Well-designed popup displays make a powerful statement about your product or service.

Of course it is possible just to throw the popup up against the back wall, stick a table in front of it, spread out your brochures, and away you go. But you can do better than that. Pay special attention to the space requirements and the specifications of your popup display, and then design your space around it. Maximize the dramatic impact of the design Focus on your "Primary Product Message Use a slogan Use simple, bold graphics

[50]

Shoestring Merchandising Tips for Retail Store Display

By: - Melanie McIntosh

Upgrade lighting whenever you can. Retail store windows especially need to be well lit. An inexpensive can of paint can be used to paint your fixtures to match, or touch up chips and keep things looking new. Fabric and paper are two valuable display helpers. Use them under or behind a display to provide a backdrop, use a scarf to add colour and movement to a static arrangement.

Use magazines as a source of ideas for displays. Find time to go to the library so you can browse for free. Take a seminar or spend a couple of hours with a retail consultant to learn some display and merchandising techniques. Pretend you are a customer and take a look at your storefront. Try to see the store as the customer would see it.

[51]

Chapter iii Research Methodology

[52]

Method of data collection:Systematic and scientific method of collecting new information called as research methodology. The study is relied on primary as well as secondary data. The primary data is collected through personal interviews using structured Questionnaire. The Secondary is collected from management of the Britannia Industries Ltd, various books,journals and Internet.

Sample:The sample represents a subset of manageable size. Samples are collected and statistics are calculated from the samples so that one can make inferences or extrapolations from the sample to the population. This process of collecting information from a sample is referred to as sampling. The best way to avoid a biased or unrepresentative sample is to select a random sample, also known as a probability sample.

Objective of the study:All companies are having their own planning and business strategies but the company who ishaving the best, is the most successful company among its competitors. So the company can getsuccess within its competitors by applying best and effective marketing strategies. To identify the visualize merchandising and product image in market. To know the offers to customer, retail outlets and competitors offer given to customer retail outlets. To know the impact of merchandising. To know the brand preferences by the customers. To track the sales in the particular beat.

[53]

Data collection: Personal interaction with company guide. Personal interaction with retail outlets and modern stores. Discussion with other officials. Questionnaires, Surveys and suggestions

Primary Data collected through Direct Observation for sales Tracking in Britannia: As per the sales track I had gone through a direct observation on the beats underSAI PRIYA DISTRIBUTERS, ALWAL a distributer under Britannia industries LTD. I have covered 10 beats under that distributer.

Route map of those 10 beats

Map-3.1
[54]

Sales tracking in those beats:Beat name Pre merchandising sales Kompally Gedimetla West venkatpuram Old bowenpally New bowenpally Sikh village karkhanna Tirumalghery Lothkunta 43890 41560 25530 28230 36810 19250 47610 36610 34290 31360 34920 22530 16330 38720 31680 33460 Post merchandising sales 42260 29920 34130 Increase Decrease

3540 1760 670 3720 4950 8760 3130 1890 3280 1740 16870

Picket mahendra 14590 hill Total

313720

330590 Tab 3.1

[55]

efect of merchandising on sales

50000 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 Pre merchandising sales Post merchandising sales

Fig-3.1 In the above graph it clearly shows about the increase and decrease of sales of Britannia products in respective beats. As we see the graph there are 10 beats in which the sales of Britannia increased in 7 beats whereas the sales also decreased in 3 beats. The sales increases due to the effect of merchandising work done in those particular beats.

[56]

increase in sales
335000 330000 325000 Axis Title 320000 315000 310000 305000 Series1

Total pre merchandising sales 313720

Total post merchandising sales 330590

Fig-3.2 In the above graph we see the total sales increased in those beats. The pre merchandising sales was RS. 313720 but after merchandising the sales is RS. 330590. The total increase in sales is RS. 16870 which is approximately 5.6%.

[57]

Snap shots during merchandising:-

[58]

Chapter 4 Data collection/ Analysis & Interpretation

[59]

Research in FMCG is very essential, as customer preferences and choices are dynamic and change frequently, the FMCG Company needs to understand these before redesigning its processes forenhancing business and many more. Since customer interaction takes place at the store and nearstore, there is a big opportunity to gather first-hand information and feedback from customersthrough research and survey. Research is carried out at the FMCG retail level for concept testing,business feasibility analysis, identification of the effect of merchandising, customer needs, activities of competitors etc.

Collection of primary data:As per the survey I have designed the sample as follows: I have selected the units for my survey was the retail outlets which include large kiranas, small kiranas and bakeries. The sample size is 100. The method I have used is simple random sampling.

For the analysis I have selected 8 questions, these are as follows:-

Do you purchase biscuit for your shop? Which brand you would like to purchase more in quantity? What influenced your decision to purchase a Britannia biscuit? According to merchandizing which brand do you think is the toughest competitor to Britannia? Does merchandizing increase the sales of Britannia? Which type of merchandising activity do you like most? According to you which shelf-space for Britannia products does create maximum impact in the customers mind? What do you think about the merchandizing activity of Britannia?

[60]

Do you purchase biscuit for your shop?

fig-3.1
120

100

80

60

Response

40

20

0 Yes No

Tab 3.1 Options Yes No Responses 100 0

On the basis of the above respondents, it is to be interpreted the graph (3.1) shows that out of 100 respondents 100 retail stores purchase biscuit i.e. 100%.

[61]

Which brand you would like to purchase more in quantity?

Response
Britannia Parle ITC Cadbury Oreo

4% 8% 20% 68%

Tab-3.2 company Britannia Parle ITC Cadbury Oreo Responses 68 20 8 4

On the basis of the respondent, it is to be interpreted the graph (3.2) shows that out of 100 respondents maximum outlets are willing to buy Britannia biscuits in more quantity and after Britannia they are giving priority to Parle and others.
[62]

What influenced your decision to purchase a Britannia biscuit?

fig- 3.3

8% 15% 41% 36%

a- Demand by consumer b- Brand name and reliability c- Qualityd -Advertisement (merchandising)-

Tab-3.3 factors Demand by consumer Brand name and reliability QualityAdvertisement (merchandising)Response 36 41 15 8

On the basis of the respondent, it is to be interpreted the above graph(3.3) shows that maximum respondent buy Britannia due to the brand name i.e. 41% and then 36% respondent buy due to demand by customers and rest of them buy 15% due to quality and 8% due to merchandising.
[63]

According to merchandizing which brand do you think is the toughest competitor to Britannia?

fig-3.4

2% 39% 32% Parle-g 27% ITC Cadbury Oreo Mcvite

Tab-3.4 competitor Parle-g ITC Cadbury Oreo Mcvite Response 32 27 39 2

As per the respondents, it is to be interpreted the above graph (3.4) shows that the Cadbury Oreo is the most competitor of Britannia according to merchandising i.e.39% after it Parle is also the second competitor which kept 32% according to the respondent.

[64]

Does merchandizing increase the sales of Britannia?

fig-3.5

5% 0% 25% Strongly agree 70% agree Disagree strongly disagree

Tab-3.5

factors Strongly agree agree Disagree strongly disagree

responses 70 25 5 0

As per the respondents, it is to be interpreted the above graph (3.5) showsthat maximum numbers of respondent i.e. 70% are strongly agreed that merchandising increases the sales of Britannia whereas no single respondent strongly disagree in this case.

[65]

Which type of merchandising activity do you like most?

fig 3.6
Low set (posters and stickers) 5%

Medium set (danglers, stickers and posters) 26%

Full set (danglers, suspenders, stickers, posters, tape, baskets and banners) 69%

Tab- 3.6 Types of activity Responses

Full set (danglers, suspenders, 69 stickers, posters, tape, baskets and banners) Medium set (danglers, stickers and 26 posters) Low set (posters and stickers) 5

As per the respondents, it is to be interpreted the above graph shows(3.6) that maximum number of respondent like to full set of merchandising i.e. 69% and 26% respondent like medium set and rest 5% like low set of merchandising.

[66]

According to you which shelf-space for Britannia products does create maximum impact in the customers mind?

fig- 3.7

3% 15% 82% Front shelf-space (Point of Purchase) Side shelf rack Back shelf rack

Tab- 3.7

Types of space Front shelf-space (Point of Purchase) Side shelf rack Back shelf rack

Responses 82 15 3

As per the respondents, it is to be interpreted the above graph(3.7) shows that the maximum respondent i.e. 82% like to keep Britannia biscuit in front shelf , 15% respondent like to keep in side shelf and only 3% respondent like to keep in back shelf.

[67]

What do you think about the merchandizing activity of Britannia?

fig- 3.8

8%

25% Impressive

67%

Satisfactory Unsatisfactory

Tab- 3.8 factors Impressive Satisfactory Unsatisfactory Responses 25 67 8

As per the respondents, it is to be interpreted the above graph(3.8) shows that maximum respondent i.e. 67% satisfy whereas 25% respondent thought impressive and rest 5% thought that unsatisfactory.

[68]

Chapter-v Findings, suggestions and conclusions

[69]

Findings of the study: Here it is found that in the current market scenario every FMCG retail outlet is keeping biscuits in their shops in the ratio of 1:0. According to the brand preference the outlets are willing to purchase Britannia biscuits in more quantity as compared to others whereas Parle, ITC and Cadbury Oreo have a smaller brand impact in the ratio of 6.8:2:0.8:0.4. If we see the influence factor then we can found that outlets are willing to buy Britannia biscuits due to the brand name and then after for customer demand whereas quality influences little beat at last merchandising come to their mind. According to the competition of merchandising, Cadbury Oreo is the toughest competitor of Britannia. Parle and ITC sun feast are also creating very good competition in this run but mcvite has so less competition in the ratio of 3.2:2.7:3.9:0.2. Merchandising can use as a tool to increase the off take off a company because maximum respondents strongly agreed and many respondent agreed that it may increase the sales whereas no body disagreed in the ratio of 14:5:1:0. Then according to the merchandising activity maximum outlets like to use full set merchandising as compared to medium set and low set in the ratio of 6.9:2.6:0.5. According to the shelf space it is found that front shelf is meant to create maximum impact in the customers mind as compared to side shelf-space and back shelf-space in the ratio of 8.2:1.5:0.3. Regarding to the merchandising activity of Britannia it is not so impressive but according to maximum respondent it is satisfactory at the same time it is not so unsatisfactory in the ratio of 2.5:6.7:0.8. Cadbury Oreo merchandise is best accepted as up-to-date one and thus it is competing with Britannia in this field of biscuit. Customers are considered as the blood life of any business in todays scenario. Making one customer delight will give us another new customer.
[70]

Parle is giving the best customers service and stands first among its competitors. It maintains its CRM very effectively and efficiently. ITC sunfeasthas a good visual merchandising among its all 4 competitors. Creating awareness through Internet or through Audio/ visual or through Print media is best done by Cadbury Oreo. According to the variety of product (product lines) Parle is competing with Britannia in this respect. Distribution is regarded as one of the important factor in FMCG industry; here in my study Parle has a good distribution network than Britannia.

[71]

Recommendations: The merchandise should be up to date and should create impulse in the mind of customer.

More efficient and effective Invest in distribution network. It should take steps to create more outlets by offering, Catchy & Intelligent schemes.

The attitude of salesman with the retail outlet owners must be helping & communication in formal way.

Exchange Policies of biscuits due to expiry or damage should be properly communicated to customers during Sale.

The salesman appointed by the company must literate and should have convincing power.

The merchandise activity should be entertained in every outlet not only to key outlets.

Trained merchandisers should be appointed. As the technology is growing day by day so the merchandise tool should provide according to the technology.

Advertisement through wall Prints; Internet and Audio/ visual media should be increase for Britannia.

The relation of distributor with the performance coach should be good and the relation of pc with the salesman should be good enough.

The sales man should follow the 7 steps of PDA while taking order. The company should appoint merchandiser under every distributer to increase in off take of the company.

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Conclusion:After going thick on the thing, now time is to make a complete picture,whilemaking a product a SKU of the shop retailers think about the customer needs and they promote the brandwhich provides them highest satisfaction. They expect return in the form of profit margin,company schemes, window display and references of the shop. Among these,company schemes make the differences and are the highest source of motivationafter profit margin. FMCG retailing demands a constant push from the company, marketers need to use advertising and brand building strategies to address thediscerning buyers and retail push to in different buyers. The manufacturer shouldunderstand consumer behaviour because retailers can't help quality and price. It isonly up to dealers said it is demand they sell Britannia that at retailshop it is brand popularity, which determine the purchase of biscuit.There is a greater need to understand the retailer behaviour considering them as ateam working for the company may help them to be attached to the company.There should be feeling of belonging to the company in inner of the retailers. Setting values club for retailers so that they may exchange views with thecompany and help in understanding consumer behaviour. FMCG retailing in India is surely poised for a takeoff and will provide many opportunities both to existing players as well as new entrants. The country is witnessing a period of boom in FMCG, mainly on account of a gradual increase in the disposable incomes of the middle and upper-middle class households as well as the outlets are willing to engage more and more amount for creating their image in the current market. More and more corporate houses including large real estate companies are coming into the retail business, directly or indirectly, in the form of mall and shopping center builders and managers.

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Bibliography

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BIBLIOGRAPHY

BOOKS: Marketing Management. Research methodology ----Kotler & Keller --- PEARSON

MAGZINES:-

Business worlds Indian FMCG India today

Websites: www.goggle.com http://www.slideshare.net/CitiXsys/gear-up-for-competition-an-articlein-images www.aboutus.com www.businessworld.in www.epaper.timesofindia.com http://www.ibmabiscuits.in http://foodbizdaily.com/articles/32688-news-biscuit-industry-inindia www.britannia.co.in http://www.naukrihub.com/india/fmcg/top-companies/
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SAMPLE QUESTIONNAIRE:
Dear Sir/Madam, As a part of PGDM course in VishwaVishwani Institute of System and Management, we are doing a project on impacts of visual merchandising on the products of Britannia industries LTD, Please give your valuable inputs for this project by filling up the following form which would take around 03 minutes of your time. The data collected only for academic purpose and we ensure full confidentiality of the data provided by you. Your time and response is really appreciated. (Please do tick only in one option) Do you purchase biscuit for your shop?

Yes. ( ) No. ( ) Which brand you would like to purchase more in quantity?

Britannia () Parle ( ) ITC () Cadbury Oreo ( ) What influenced your decision to purchase a Britannia biscuit?

a- Demand by consumer ( ), b- Brand name and reliability ( ), c- Quality-( ) d -Advertisement (merchandising)-( ) According to merchandizing which brand do you think is the toughest competitor to Britannia? Cadbury ( ) Mcvite ( )

Parle-G ( ) ITC Biscuits ( )

Does merchandizing increase the sales of Britannia?

Strongly agree ( ), agree ( ), Disagree ( ), strongly disagree ( ) Which type of merchandising activity do you like most?

Full set (danglers, suspenders, stickers, posters, tape, baskets and banners) - ( ) Medium set (danglers, stickers and posters) - ( ) Low set (posters and stickers)-( ) According to you which shelf-space for Britannia products does create maximum impact in the customers mind?

A-Front shelf-space (Point of Purchase) ( ), B- Side shelf rack-( ), C-Back shelf rack ( ) What do you think about the merchandizing activity of Britannia?

A-Impressive ( ), B- Satisfactory- ( ), C- Unsatisfactory ( )

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Outlet Name:Thank you for your Valuable input.

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