PROJECT REPORT ON

Study on Product Category (Olives and Olive Oil) for Del Monte FOR

FieldFresh Foods Pvt. Ltd. (Del Monte)

BY Harish Gujaran

Submitted in Partial fulfillment of requirements for award of Post Graduate Diploma In Management

DECLARATION

I hereby declare that the Project titled Study on Product Category (Olives and Olive Oil) For Del Monte submitted as a part of the study of is my original work. The Project has not formed the basis for the award of any other degree, diploma, associate ship, fellowship or any other similar titles.

Harish Gujaran Place: Mumbai Date:

CERTIFICATE

This is to certify that Harish Gujaran has completed the Project Study on (Olives and Olive Oil) Market share with a case study of Del Monte under the guidance of Prof. Rubina Dmello in partial fulfillment of the requirements for the award of Post Graduate Diploma In management for the academic period 2011-13.

Signature of the Guide Director

Signature of the

Place: Mumbai

Date

ACKNOWLEDGEMENT

On this opportunity I would like to extend my sincere thanks to my college, Atharva School Of Business, Mumbai and to Field Fresh Foods Pvt. Ltd., for offering me a unique platform to earn exposure and garner knowledge in the field of sales and research of premium FMCG products. This project was a great learning experience and provided me an up close insight of how the sales & interaction with retailer is done. I am especially thankful to my guide Mr. Jigar Gandhi for the kind support and guidance that he extended to me throughout the project. I also want to convey my sincere thanks to Shri Sunil Rane Sir, executive president Atharva Education Trust; Bhattacharya, Director of Atharva School Of Business and my college faculty Prof Rubina Dmello, who has been guiding me throughout the project. She was there to help me out at all possible situations. Last but not the least I would like to express my profound gratitude and thanks to each and every employee of Field Fresh Foods Pvt. Ltd. who knowingly or unknowingly have contributed in their own ways to the successful completion of this project.

Harish Gujaran PGDM (Marketing)- 27 ASB, Mumbai

Executive Summary

The project was aimed at understanding and then analyzing the product category (Olive and Olive Oil) and the methods in which the company is currently carrying out sales for their Del Monte range of products. Del Monte, an international conglomerate in food industry has recently entered the Indian market. While the market potential is huge, the competition is also fierce. Typical of the FMCG market almost all the major FMCG players wage a price war. Del Monte products are positioned as premium products. To reach the target segment and convince them of assured high quality which is the Del Monte promise is a challenging job. The sales and distribution network is the backbone of any FMCG company. In my project, I started off with the category study by the usage of perforated sheets as a research material on private vehicles. Following which I studied the sales model of Del Monte products in Mumbai city focusing on General Trade outlets which included stand alone super market, Kirana stores, dry fruits outlets and Chemists. I gave the feedback about the present category status and also gave suggestions for optimization of sales. The issues with retailers and distributors regarding the products were reported to company. I was also looking after point-of-sale promotions of Del Monte products at the supermarkets that I was allotted.

TABLE OF CONTENTS

SR NO.
1.

PARTICULARS Executive Summary Topic Objective of study

PAGE NO. 5 7

2.

3.

Research Methodology : a. Primary b. Secondary c. Limitation d. Scope

4. 5. 6. 7. 8. 9. 10. 11.

About the Industry and Company About the products Current Market Status Analysis of the study Recommendations Conclusions Summary Bibliography

9-18 19-21 22 23-31 32-34 35 36 37

Topic
The objective of my project was aimed at understanding the product category (Olives and Olive Oil) and suggest how the company can increase their market share city south Mumbai. Del Monte is a recent player in the processed foods industry in India. While the market potential is huge, the competition is also fierce. The competition stems from the fierce price war amongst the players. Del Monte products are of premium category with emphasis on quality. To reach the target segment and convince them of assured high quality is a challenge the company has embarked upon. The sales and distribution network is the backbone of any FMCG company. In this project, I have studied the Product category considering its market potential, market competition and retailer and consumers perception. After the analysis of the Product category, I was asked to give feedback on Del Montes present market share and also provide suggestions for optimization of sales. The issues with retailers and distributors regarding the products were reported to company. We also did market research for getting customer insight for product category and for Del Monte in that category and other products as well, with the use of perforated sheet. We found out the reasons why retailer and consumer prefer other competitors product in South Mumbai. While we promoted Del Monte products at all possible outlets, from small bakeries to big hypermarkets, my area of focus was on standalone Family malls which come under the purview of General Trade.

Objectives of Study
Understanding Product category of can Olives and Olive Oil. Understanding Potential and Competition of category in market. Understanding retailer and consumer insight towards category. Finding Del Montes market share and costumers insight. Recommendation for sales optimization.

Research Methodology:
Primary Research:All the data pertaining information regarding product category were collected as a part of daily field visits which were extensive and laborious. My daily field visits includes visiting retailers in different areas from Bandra to Borivali and interacting with consumer at those retail outlets. Secondary Research:Other data about the company like Company basic information, Competitors images and such have been collected through internet. Also the facts and figures about the FMCG Company have been collected through secondary research.

Limitation :
The study was limited between Borivali to Bandra. Study was also limited to Olives and Olive Oil. Sample size 200 people. Less of awareness about the brand among the customers. Demand of Olives and Olive Oil is quite low. Targeted to premium class customers.

Scope
The study enabled me to experience FMCG market. It also gave experience of other Indian food market .

About the Industry and Company About the FMCG Market in India
The Indian FMCG sector is the fourth largest sector in the economy with an estimated size of Rs.1,300 billion. The sector has shown an average annual growth of about 11% per annum over the last decade. Unlike the developed markets, which are prominently dominated by few large players, Indias FMCG market is highly fragmented and a considerable part of the market comprises of unorganized players selling unbranded and unpackaged products. There are approximately 12-13 million retail stores in India, out of which 9 million are FMCG kirana stores. India FMCG sectors significant characteristics can be listed as strong MNC presence, well established distribution network, intense competition between the organized and unorganized players and low operational cost. Easy availability of important raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. Products which have a swift turnover and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG items are those which generally get replaced within a year. Examples of FMCG commonly include a wide range of repeatedly purchased consumer products such as toiletries, soap, cosmetics, oral care 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 etc. Penetration level and per capita consumption in many product categories is very low compared to world average standards representing the unexploited market potential. Mushrooming Indian population, particularly the middle class and the rural segments, presents the huge untapped opportunity to FMCG players. Growth is also likely to come from consumer 'upgrading' in the matured product categories like processed and packaged food, mouth wash etc. A distinct feature of the FMCG industry is the presence of international players through their

subsidiaries (HLL, P&G, Nestle), which ensures innovative product launches in the market from their parent's portfolio. Our country has a varied agro-climatic condition which enables to offer extended raw material base suitable for many FMCG sub sections like food processing industries etc. India is the one of the major producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits & vegetables. Similarly, India has an abundant supply of caustic soda and soda ash, the chief raw materials required in the production of soaps and detergents, which enables the household section of the industry to excel and grow. The accessibility of these raw materials gives India the locational advantage.

Government Policy
The Government has enacted policies aimed at attaining international competitiveness through lifting of the quantitative restrictions, reduced excise duties, automatic foreign investment and food laws resulting in an environment that fosters growth. Completely export oriented units can be set up by government approval and use of foreign brand names is now freely permitted.Automatic investment approval (including foreign technology agreements within specified norms), up to100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies(OCBs) investment, is allowed for most of the food processing sector except malted food, alcoholic beverages and those reserved for small scale industries (SSI). 24per cent foreign equity is permitted in the small-scale sector. Temporary approvals for imports for test marketing can also be obtained from the Director General of Foreign Trade. The evolution of a more liberal FDI policy environment in India is clearly supported by the successful operation of some of the global majors like PepsiCo in India. The Indian government has abolished licensing for almost all food and agro-processing industries except for some items like alcohol, cane sugar, hydrogenated animal fats and oils etc., and items reserved for the exclusive manufacture in the SSI sector.

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Quantitative restrictions were removed in2001 and Union Budget 2004-05 further identified 85 items that would be taken out of the reserved list. This has resulted in a boom in the FMCG market through market expansion and greater product opportunities.

Central and State Initiatives

Various states governments like Himachal Pradesh, Uttaranchal and Jammu & Kashmir have encouraged companies to set up manufacturing facilities in their regions through a package of fiscal incentives. Jammu and Kashmir offers incentives such as allotment of land at concessional rates, 100 per cent subsidy on project reports and 30 per cent capital investment subsidy on fixed capital investment upto $63,000. The Himachal Pradesh government offers sales tax and power concessions, capital subsidies and other incentives for setting up a plant in its tax free zones.

Trends
The boom in various consumer categories, further, indicates a latent demand for various product segments. For example, the upper end of very rich and a part of the consuming class indicate small but rapidly growing segment for branded products. The middle segment, on the other hand, indicates a large market for the mass end products. The BRICs report indicates that Indias per capita disposable income, currently at $556 per annum, will rise to $1150 by 2015 - another FMCG demand driver. The spurting the industrial and services sector growth is also likely to boost the urban consumption demand. An estimated double-digit growth over the next few years shows that the good times are likely to continue.

Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing
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demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. If the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. The increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.

Industry Analysis
A. Key Success Factors: a) Distribution-related KSFs: A strong network of distributors Efficient and responsive supply chain Ability to secure favourable display space on retailer shelves Robust relationship with retailers

b) Marketing-related KSFs: Strong brand recall Motivated Sales team well equipped with the product knowledge

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Point of Sale advertising Special offers and bulk buy deals for retailers Attractive product packaging

c) Other types of KSFs: High product quality standards Product innovation capabilities with respect to new product launch and time to market

d) Industrys Dominant Features: Industry growth rate: The industry is growing at the CAGR of 9%. Number of rivals: In certain product categories, such as, ketchup and sauces, the industry is dominated by a few large companies but overall it is fragmented into many small and regional companies. Number of buyers: Market demand is fragmented among several buyers across the country and hence buyers do not enjoy much of bargaining power Degree of product differentiation: Product of other companies is less differentiated leading to heightened price competition. Product Innovation: Development of new and differentiated products is important

B. Industry Driving Forces: Booming modern retail Increasing globalisation of industry leading to several foreign companies foraying into India Changes in consumer behaviour marked by increased health consciousness and adoption of urban and outgoing lifestyle Burgeoning middle class with increased purchasing power

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About the Company

FieldFresh Foods Pvt Ltd.:
An Indian business giant and a Philippine conglomerate have come together to create FieldFresh Foods Pvt. Ltd. FieldFresh Foods Pvt. Ltd. is a venture between Bharti Enterprises and Del Monte Pacific Limited, to offer fresh and processed fruits and vegetables in the domestic as well as international markets, including Europe and the Middle East. Brand Del Monte has 118 years of rich international heritage during which it has been synonymous with quality and taste. The brand originated in the US and is now available all across the globe. The Del Monte range of branded processed food products includes Fruit drinks, Ketchup & Sauces, Packaged Fruits and the Italian Range consisting of Pasta, Olive Oil and Olives/Jalapenos and a Culinary range which is aimed at HORECA, Foodservices and QSR industries. Del Monte was brought to India in 2007 by a joint venture between Bharti Enterprises and Del Monte Pacific Ltd. The JV is called FieldFresh Foods Pvt Ltd. Bharti Enterprises is one of India's leading business groups with interests in telecom, agri business, financial services, retail and manufacturing. Del Monte Pacific Ltd, headquartered in Manila, Philippines, is engaged in the production, marketing, and distribution of Del Monte products in the select Asian markets. Del Monte Pacific also holds exclusive rights to produce and distribute food and beverage products in the Indian subcontinent. The company will produce, market and distribute farm fresh products that address the needs of todays consumer. With a range of delicious and superior tasting products, FieldFresh Foods Pvt. Ltd., looks forward to becoming one of the most trusted providers of premium quality fresh farm products, processed foods and beverages.

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With the synergy between Bhartis dynamism and Del Montes heritage of over 100 years, the company aims at becoming a leading player in the foods & beverages segment in India. FieldFresh Foods Pvt Ltd besides offering Del Monte range of Food & Beverage products, also sources and markets fresh produce for domestic as well as export markets. The company's vision is to be the most trusted and innovative provider of branded fresh fruits, vegetables and processed food products in India.

Bharti Enterprises:

Indias leading business group, Bharti Enterprises has interests in telecom, agri -business, insurance & retail. With over 100 million customers, Bhartis flagship unit, Airtel Ltd., is the countrys leading private sector provider of telecommunication services.

Del Monte Pacific Limited:

Based in Philippines, the company is engaged in the production, marketing, and distribution of premium branded processed foods and beverages. Del Monte Pacific also holds exclusive rights to produce and distribute food and beverage products in the Indian subcontinent.

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Quality Excellence at FieldFresh

FieldFresh ensures best-in-class facilities, business practices and quality standards through technological innovations, international quality management systems and food safety initiatives. Our Quality Management System (QMS) operates on:

Right First Time Zero Tolerance

These are achieved through critical interventions in processes wherever applicable, so that only top-class quality products reach the end consumers.To pave the way in farming practices, the company has complied with Global GAP guidelines not only in company managed farms but across all partner farms. The growing partners are spread across the following states:

Punjab - Baby Corn, French Peas Maharashtra - Sweet Corn & Baby Corn Gujarat and Andhra Pradesh Mangoes

The state-of-the-art laboratory facilitates physical, chemical and microbiological analysis of the raw materials and packaging materials through the entire manufacturing cycle. Continuous focus on packaging development and innovative solutions has enabled FieldFresh to meet the superior packaging requirement of customers.

At FieldFresh, food safety and consumer health is the top most priority. This is clearly reflected in the manufacturing facility and packhouse being certified under:

Food Safety Management Systems (FSMS) (ISO:22000:2005) BRC British Retail Consortium

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Environment Health & Safety (EHS) is an integral part of FieldFresh business practices. Focus on EHS is driven through:

Process Mapping Regulatory and Food Safety Audits Reviews of Certifications The Technical team is also focused on critical processes and development for new initiatives on new products.

Certifications
The Good Agricultural Practices and QMS have enabled us to achieve highest levels of standards and certifications.

Exports
FieldFresh Foods has focused on building a robust Fresh Exports business model in vegetablesprimarily Baby Corn and Sweet Corn. Some of the other greens exported are French Beans and Green Chillies. All farms, where both Baby Corn & Sweet Corn is grown are Global GAP certified farms.

Agri Centre Of Excellence (ACE)

FieldFreshAgri Centre OF Excellence (ACE) at Ladhowal, Ludhiana, Punjab was inaugurated by Dr. Manmohan Singh, Honourable Prime Minister of India on 27th September, 2006. ACE comprises of 300 acres of farming, developed for open and protected cultivation.

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The activities that have gone into making ACE a centre of excellence are:

Partner Farming Farmer Training Open Cultivation Crop Development 132 acres of Micro Irrigation 42 acres of Spanish designed protected cultivation Bell Peppers and Cherry Tomatoes grown in Glass Houses Chilly Nursery in Green Houses Cauliflowers in Net Houses 24 x 7 technical support to the partner farmers

A state-of-the-art processing facility and pack-house has been set up with vegetable processing capacity of over 250 tons and a cold-storage capacity of 500 metric tons built over 7500 sq. metres. The facility takes pride in the following certifications:

GLOBALGAP Certified Operations ISO 22000 Certified Packhouse BRC (British Retail Consortium) Certification for the Packhouse

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About the Products

The Del Monte product range includes:

Pastas and Pasta Sauces: Authentic Italian Pastas in various shapes, Spagehetti, Penne Rigate, Spirali, Chifferi Rigati, Spirali Tricolor, Farfalle, Penne wholewheat and Lasgne. Pasta Sauces are also in delicious flavors Arrabbiata, Tomato & Basil, Siciliana and Veg Bolognese.

Fruit drinks: Pineapple fruit drink with pulp, Pineapple Orange fruit drink, Mango fruit drink, Four seasons fruit drink (Pineapple, Mango, Orange and Guava), Green Apple and Orange. It also includes pet bottles of Mango and Four season.

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Packaged fruits: Pineapple Slices, Pineapple Tidbits, Mango Pulp(Sweetened), Fiesta Fruit Cocktail, Peach Halvesand Californias Prunes.

Corn: Regular and Sweet Corn

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Ketchup & Sauces: Tomato Ketchup, Zingo & Twango Sauces

Italian Range: Range of dry Pasta, table Olives and Olive Oil

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Current Market status of Olives and Olive Oil between Bandra to Borivali.
The current market of Olives and Olive Oil is on a growing trend. These products are considered to be premium since only upper middle class and high class prefer using Olives and Olive Oil. The sale of such products depends upon the consumers buying behaviour and consumer decision making. The retailers who were interviewed during the primary research replied that the sale of olives and olive oil is quite slow as compared to other products in the market. The reason was mainly because of the price of Olive oil. With increasing purchasing power and a rising middle class, the fast moving consumer goods (FMCG) industry is posed to grow dramatically. Olives and Olive Oil being a premium product has slow movement in market but since the disposable income has increased, people will start consuming these products.

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How many Customers in India use Olives and olive Oil?

Sales
Use Do not Use

25%

75%

When interviewed to around 200 consumers they gave is this answer that25 %peoplesaid that they prefer using olives and olive oil whereas 75 % people either use it once in a while or do not use in at all.

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Have you tried any of the below olives and olives oil? a. Figaro b. Borges c. Farrell d. Del Monte e. Others

Column1
Figaro Borges Farrell Del Monte Others

25%

20%

20% 10%

25%

There are many brands of olives and olive oil available in the market. Few of them are listed below: a. Figaro 20 % b. Borges 25 % c. Farrell 10 % d. Del Monte 20 % e. Others -25 %

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On what basis were the products selected by the customers?

Column1
Brand Variety Taste/Quality Offers

20% 35% 15%

30%

This question was quite important from the customers point of view. It was necessary for us to know on what basis did the customers buy the product. 20 % people felt brand is important, 15 % people felt variety is essential, 30 % people go for quality and the remaining 35 % would only buy during offers.

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Purpose of buying Olive Oils?

Purpose
Cooking Massage

35%

65%

There are many advantages of using olive oils. Some use it for cooking purposes where as some use it for massage purposes. Olive oil has many benefits. When the customers who use olive oil were interviewed around 65 % of the people prefer using it for cooking and the rest 35 % use it for massage purposes.

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On what basis retailer keep the product?

Sales
Margin Service Demand Relationship

15% 35%

40% 10%

MarginServiceDemandRelationship-

35% 10% 40% 15%

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Age Group:

Age Group
Below 15 15 to 20 20 to 25 0% 10% 35% 10% 25 to 30 30 to 35 Above 35

15%

30%

As per our research, we noticed that customers in the age group 30 to 35 and above 35 consumed the maximum amount of olives and olive oil. Where as customers in the age group 25 to 30 consumed 15%. Age group 15 to 20 and 20 to 25 consumed 10%.

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Annual Individual Income:

Income
below Rs.5 L Rs. 5 to Rs. 10 Rs. 10 to Rs. 15 Rs. 15 & above

10% 15% 40%

35%

As we targeted general trade the most we noticed that customers lying in the income group between Rs. 5 to Rs. 10 L and below Rs 5 L consumed the most.

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Who Influences the purchase of these products?

Column1
Spouse Children Parents Friends

10% 35%

45% 10%

As it is clear by looking at the pie diagram, spouse and parents are the most influential people in buying olives and olive oil with 35% and 45% respectively.

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Have you ever tried Del Monte products?

Yes

No

20%

80%

As per customers interviewed, 20% people were aware of Del Monte where as 80% were unaware about the brand. This figures were known by interviewing around 200 retailers between Bandra to Borivali& asking them the question which is given above.

Competition in the category

Figaro Borges Farrell Olivio Bertolli Ibero Leonardo R & S Olive oilve

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RECOMMENDATIONS
Having worked primarily with general Trade, and by studying the product category, the recommendations I gave to the company were primarily aimed at optimization of the general trade sales. However, certain ideas can be successfully implemented in modern trade as well.

1.

The Co. should stress upon the brand awareness and brand promotion activities to

popularise the brand among the end consumers. It can be done using various advertisement means such as Tv ads, print media etc. The TV ads would be very expensive to company but the print media such as hoarding or banners can be placed in the retail outlets or nearby where it gets maximum consumer impressions & the company should also concentrate on ground level promotions which directly comes in contact with retailers and consumers.

2.

The company can also adopt the quick selling technique which would push the sales, like

company can promote its product by offering promotional offers to their customers for e.g with a purchase of 1litre olive oil customers would get 1litre free which would impact the sales of olive oil and with the help of that customer will get to know about Del Monte which is a positive sign for Del Monte as a whole as it is a newly brand in the market with around 57variants & competition is also vast with highly market potential.

3.

The company can also provide free trail packs of can fruit drink or pet bottle on their

other premium product such as olive oils, in that case people will get experience of top quality can fruit drink and its impact would be the product awareness of can fruit drink.

4.

The company should also pressurise on the service offering to retailer and should

increase their market reach with help of an efficient sales team.

5.

A well planned route map would considerably enhance the efficiency of the salesmen,

and ensure that orders are evenly placed throughout the week.

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6.

Special training to be imparted to salesmen to enable them to perform better-

In convincing the new as well existing retailers to buy more and more of Del Monte

products across range.

Exhaustive knowledge of the Del Monte brand and its products should be given to them.

They should be shown a ppt. on that in their regional language. This knowledge will in-turn enables them to explain to retailers on the products USP. Sales men should be given thorough knowledge of competitors product as most of the

questions they faced revolved around this only.

The Company should give tasting samples of the items to the sales men, so they

themselves understand the product and can more confidently pitch the products to the retailers.

7.

The Sales Officer should at random go on rounds with the sales men to monitor the field

activities and also talk to retailers about the issues they are facing, if any and should update them on the company plans and new launches. This will improves the Co.s image in the mind of retailers and also the SO will know the prevailing issues and the proficiency of the sales men.

8.

The reimbursement for the sales man should be performance based. Break up the salary

into fixed pay and variable pay. Give the petrol allowance also variable. The benefit of this would be greater motivation for the salesmen to perform and deliver results.

9.

Sales men should also be asked and encourage to visit new stores and there should be a

target with respect to appointment of new retailers as buyers.

10.

Build strong relation with retailers and build confidence in him through various methods

like promotional tours, extensive sampling etc. This is crucial since the company is new and the products are just increasing their presence.
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11.

The salesman should firstly check the demand of our product in that retail shop by

keeping little quantity at the start & then after knowing the demand he should keep the quantity as per the demand so that the stock doesnt go waste due to the reason of expiry, physical damage or some other reasons.

12.

The company managers should constantly check what schemes or margins the salesman

are giving to the retailer are according to the company standards or not.

13.

The company should have a proper policy of giving margins for constant period because

when the salesman gives higher margin to the retailer at the end of the month only to fulfil the target what he was given so this accounts a serious problem when the same salesman goes again to take order & he tries to fluctuate with the margins to make it less so this creates a bad image of the company or a brand on that retailer.

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Conclusion
In my project, I was entrusted to study Product category of Olives and Olive Oil especially focusing on the General Trade channel. I gave the company feedback on Product category considering its market potential, market competition and retailer and consumers perception. After the analysis of the Product category, I also gave feedback on Del Montes present market share and also provide suggestions for optimization of sales. The issues with retailers and distributors regarding the products were reported to company. We also did market research for getting customer insight for product category and for Del Monte in that category and other products as well. We found out the reasons why retailer and consumer prefer other competitors product. Having learnt of the good response from the customers who praised the high quality of the products and its good taste, company is expecting to capture a huge market share. Presently the chunk of companys profit is coming from Modern trade divisions which include big departmental stores. However the company is also banking upon the general trade channels to provide for a substantial share in the overall sales pie.

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Summary
This project was aimed at understanding the product category (Olives and Olive Oil) and suggests how the company can increase their market share for Del Monte. Currently the majority of sales come from Modern Trade. However with the increase in awareness and the companys investment in promotional activities, the company is expecting greater returns from general trade in terms of greater sales share. The company is also facing issues in maintaining distributors but with the increasing sales, they believe this problem will be solved soon. Company is involved in a process of building relationship with retailers for the same they have implemented the retailer loyalty program in which the retailers are provided with extra margin and schemes and asked to stock Del Monte products reducing the competitors product and a trend statistic is being maintained now as to how strong have been the effect of promotional activities like merchandizing, wet sampling activity etc. Customers had given a feedback that they wanted to first try small quantity of these products before actually buying big volume. Thus Company has launched sachets and small bottles of all its variant of ketchups and they also have 250g small packs of pasta which no other Italian brands has and the company has also the pet bottle fruit drink in 2 flavours like mango & mixed fruit which no other imported brand is having in the market.

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Bibliography

http://www.fieldfreshfoods.in/

http://farway.trustpass.alibaba.com/product/128174056-103188257/Rani_Juice.html

http://www.ninemilliondollars.com/2012/05/why-you-should-invest-in-fmcg-sectorfunds

http://www.iseindia.com/ResearchPDF/FMCG_Update1.pdf

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