The Distribution Channel And Market Examination Marketing Essay

The job "Study of the syndication route and market research of the of the merchandise distributed and sold by Keventer Agro under the permit of Parle Agro" requires the analysis of the strategies carried out by Keventer Agro to distribute and market products of Parle Agro which includes HIPPO and BAILEY PACKAGED NORMAL WATER and BAILEY Soda pop.

Keventer Agro: The Company

Keventer Agro Small is a subsidiary of Keventer Group which has been working years in the meals Processing Industry in India for more than 125 years. Keventer exports Alphonso Mango Pulp, Totapuri Mango Pulp, Guava Pulp, Sweetened Alphonso Mango Pulp, Mango Pickle, Sesame Seed, Cashew Nuts, Peanuts, Cumin Seed, Fennel Seed, Fenugreek, Coriander Seed, Bakery Substances, Super fruit Jams, Tutti Fruiti, Red Chilies & Button Mushrooms etc. to various countries. Keventer Agro Ltd. (KAL) was established in the entire year 1986. The section exports foods such as Mango Pulp, Guava Pulp, Sesame Seed products, and Bakery Substances to various customers throughout the world. Very quickly, it earned the coronet to be the first to introduce aseptic product packaging in the beverage category (a high-end product packaging procedure that maintained the natural goodness of beverages in hygienic packages). The Group inserted into a franchisee arrangement with the meals and beverage giant - PARLE to create, package, distribute and market its well-known brands specifically FROOTI - a favorite mango drink, APPY and APPY FIZZ- the in-style apple beverages and BAILEY PACKAGED DRINKING WATER generally in the eastern parts of India.

In overdue 2010, Parle Agro inked another contract with Keventer Agro to create a place at Barasat. This new unit produces Parle Agro's snack brand Hippo. Besides processing, Keventer is also responsible for marketing, sales and distribution of Hippo. Parle Agro chose to partner Keventer for their range of food brands which w˜-ll hl˜ them to broaden Hippo's market share in the eastern part of India.

Parle Agro: The Company

Parle Agro is a household name in the beverages industry and has leading brands like Frooti, Appy, Appy Fizz and packed drinking water, Bailley. A pioneer in the Indian industry, Parle Agro were the first to introduce fruit beverages in tetra product packaging, first to present apple nectar and the first ever to introduce fruit drinks in PET containers. In 2007, Parle Agro forayed into foods with the release of two confectionery brands, Mintrox mints and Buttercup candies. This is soon accompanied by two more brands - Buttercup Softease and Softease Mithai. Recent beverage products from Parle Agro include Saint Juice, LMN and Grappo Fizz. In '09 2009, Parle Agro forayed into snacks with the unveiling of Hippo, good company's vision to become a major player in the foodstuffs and drinks industry. The treat brand Hippo, premiered in the traditional western region you start with Maharashtra and then it was soon rolled out nationally. Parle Agro commenced procedures in 1984. Starting with only drinks and diversifying to add bottled water in 1993 and confectionery in 2007. Frooti was the first product that was rolled out of Parle Agro in 1985. It went on to be India's preferred mango drink. It still has a leading market talk about.

Parle Agro Pvt. Ltd manages under three business vertical Beverages - fruit refreshments, nectars, 100% Juice, sparkling drinks, Normal water - Packaged Drinking Water and Foods - confectionery, snacks

HIPPO: Parle Agro forayed into treats with the kick off of Hippo, in line with the company's vision to become a major player in the meals and drinks industry. Hippo is a toasted loaf of bread snack. Its elements include wheat flour, edible veg oils, seasoning mixture, corn starch, sugar, raising agent, milk solids, sodium, emulsifier, yeast draw out powder, instant fungus. It contains added natural color and added natural equivalent flavoring chemicals; but no added MSG, no GMO no Trans Body fat. It will come in two variant; Hippo Munchies and Hippo Round-Round. The Hippo Munchies comes in 7 flavors (Chinese language Manchurian, Hot-n-Sweet Tomato, Thai Chilli, Yoghurt Mint Chutney, Italian Pizza, Indian Chatpata and Arabian Salted) and Hippo Round-Round will come in 5 flavors (Punjab Da Pickle, Gujrati Mango Chatni, Shillong Noodle Masala, Goan Butter and Garlic, Firangi Mozzarella cheese n Spice). It is available in three sizes which will set you back Rs 5, Rs 10 and Rs 20.

Industry to which Hippo belongs: Hippo is a new player of the treats industry of India. The Indian snack industry is one of the largest when considered in the global level. With rising standard of living, people will be more resorting to snacks items during breakfast time, supper or any time; snacks frequently take the place of meals. From production, using up, export and expansion prospects owing to emerging marketplaces, increasing demand, and incorporation of latest solutions, the snack industry in India has observed a remarkable change. Ready-to-eat foods, samosas, kachoris, namkeen, potato chips, are few of the appetizers that are most preferred by Indians. Given the growing demand, the snack industry will witness further progress in the future.

The treats food industry in India can broadly be categorised into three sections - staple (biscuits category), traditional (namkeens) and ready-to-eat packed snacks (potato chips / crisps). The treats market in India is $3 billion; with the organized segment accounting for nearly half of the market share and growing at rate of 15 to 20 percent per calendar year. A growing current economic climate, changing lifestyles, climb in disposable earnings and inclination for quality products of U. S. source will continue to fuel progress of imported U. S. treats items in India. According to an industry estimate, the branded and organized snack food portion dominated by major players such as Frito Lay, Con Agra, Kellogg's, Marico, Dabur, HLL, ITC, Parle, Haldiram's, Nestle, Britannia, Cadbury, Bikano and Balaji is estimated to grow by 15 to 20 percent per calendar year; whereas the development of un-branded snack food will probably increase modestly at 8 percent per year soon.

Frito-Lay India led sugary and savory appetizers with a retail value talk about of 46% in '09 2009. The business's Kurkure, Lehar and Lay's Stax offerings have helped it to consolidate its leadership through the season. Haldiram Foods International Ltd and ITC Ltd continued to be the next and third ranked players respectively. Products like Hippo assert to be made from healthier elements than potato chips/crisps. With Indian consumers becoming more health conscious and even more inquisitive about the materials in their food, lovely and savory goodies will witness a rise in products which are positioned as better for you and healthier snack foods.

BAILEY PACKAGED DRINKING WATER: Another product of Parle Agro that is monitored by Keventer Agro. It is the first water brand to be issued an ISI documentation and the first ever to start special four-sided 200ml bottles catering to high grade airlines like Jet Airways and British Airways. Bailey comes in 200ml, 300ml, 500ml, 1 ltr. & 2 ltr. PET and 5 ltr. , 20 ltr. , & 25 ltr. Jars. The target market is thirsty, hygiene conscious people and Hotel, Restaurant and Cafe (HORECA). Bailey the brand that is owned by Ramesh Chauhan's sibling Prakash Chauhan is extremely popular in the southern part of India

Industry to which Bailley belongs: India's bottled water industry is bubbling with a 25-30% expansion each year. As the competition gets hotter, branding can be essential in the commoditised Rs 1, 100 crore market. You will find more than 200 bottled water brands in India and among them nearly 80 % are local brands. Actually, making water in bottles is today a cottage industry in the united states. Leaving together the metros, in which a bottled-water manufacturer can be found even in a one-room shop, atlanta divorce attorneys medium and small city and even some successful rural areas there are water in bottles manufacturers.

While India ranks in the top 10 largest water in bottles consumers in the world, its per capita per annum ingestion of bottled water is projected to be five litres which is relatively lower than the global average of 24 litres. Today it is one of India's fastest growing industrial industries. Between 1999 and 2004, the Indian bottled water market grew at a mixture annual growth rate (CAGR) of 25 per cent - the highest on earth. The total annual bottled water usage in India got tripled to 5 billion liters in 2004 from 1. 5 billion liters in 1999. Global use of water in bottles was nearing 200 billion liters in 2006.

The market leader is Bisleri International, which has a 40 per cent share. It really is accompanied by Coca- Coca's Kinley (around 25 %) and PepsiCo's Aquafina (around 10 %). The most notable players in bottled water industry in India are the major international giants like Coca cola, Pepsi, Nestle and visible presence of nationwide players like Support Everest, Manikchand, Kingfisher, Mohan Meakins, SKN Breweries, Indian Railways etc. Virtually all major countrywide and international brands took a plunge. Parle's Bisleri that practically monopolised the bottled water market is currently vying with Nestle, Coca Cola, PepsiCo, Manikchand, UB and Britannia. Matching to a national-level study, there are near to 200 water in bottles brands in India. Almost 80 per cent of the are local brands.

Bottled water is sold in a variety of packages from 200 ml pouches and glasses, to 330 ml bottles, 500 ml containers, to one-liter containers and even 20- to 50-litre bulk water packs. In conditions of cost the water in bottles business in India can be divided broadly into three segments, premium natural mineral water, natural mineral water and packed drinking water.

BAILLEY SODA: It had been first introduced in the past in the year of 1998 but due to fierce competition from the local brands it might not sustain in the market. Parle has relaunched its soda. Parle Agro within renewed zeal has again launched Soda with far better packaging and product. The merchandise has a gas level of 5. 4% V/V of carbon dioxide compared to 4. 5% V/V of skin tightening and rendering it stronger accompanied by Grenade like label on the container.

Objectives of the Project

For HIPPO

To perform a qualitative research on the tendency of packaged treat industry

To measure the acceptance of baked and healthy-snacks

To understand competitor's strategy in the market

To study the sales and syndication structure, costs (both to the shop and to the buyer) of Hippo and problems in those well known area.

To develop marketing approaches for Hippo

To analyze the markets and determine the factors in charge of sales of products and provide advice about the opportunity for improvement.

To give a assertion of collective replies of the retailers'and determine the opportunity for improvement in the distribution channel for the merchandise and the issues experienced by the vendors.

To research the design of consumer action and their consciousness towards HIPPO

To find out the issues encountered by HIPPO if any and suggest solution to handle those problems

For BAILLEY PACKAGED DRINKING WATER and SODA

To find out the potential of bailey packed normal water and soda in the market

To understand the bargaining ability of the company in respect to the product

To understand the merchants' view about the products

To find put the main competitors operating in the market

To give a assertion of collective reactions of the retailers 'and determine the scope for improvement in the syndication channel for the products and the issues encountered by the sellers.

To find out the problems faced by bailey packaged water and soda if any and suggest solution to handle those problems

To understand the marketplace and suggest ways that would lead to increase in sales for bailey packaged drinking water and soda

Project Methodology

Primary Research is done through market review. The research is principally based on:

Questionnaire Method

Interview Method

Observation Method

Secondary Research has also been used as a encouraging tool like:

Some of the data related to holistic picture of the industry has been collected from the data available on the internet

M A I N T E X T

Since the job revolves around two types of products distributed and sold by Keventer Agro under the certificate of Parle Agro, work done so far involves both the products Hippo and Bailley packaged normal water and soda pop.

The initial phase constituted of mainly studying and studying the distribution channel of Hippo and doing a market evaluation of the merchandise regarding charges, competition, brand consciousness and consumer patterns of Hippo.

As per the objective of the job, two packages of questionnaire were prepared;

For the merchant which directed to evaluate the option of Hippo, charges of Hippo, sales, defect handling and some financial facet of Hippo viz. it's competition and the other for the consumers.

For the buyer which aimed to gauge awareness of the merchandise and the brand, product approval, their choice of product and buying pattern.

PHASE ONE

Refer Annexure I for even more details.

This phase involved daily appointments from the stock indicate the designated marketplaces. The markets protected were Sodium Lake, Lake Town, S. K. Deb Street Market, Nagerbazar, Mrinalini Cinema Hall Market, New Market, Ultadanga, Kankurgachi, Bagmari, Beadon Avenue, Aurobindo Street and Vivekananda Road area, Shyambazar, Rajballavpara and Baghbazar. Every shop that placed branded appetizers in the respected area was contacted. The initial plan was to execute the review through questionnaire method but while accomplishing the survey the method needed to be changed to schedule, observation and interview method as it was not convenient for the retailers to fill up the questionnaire.

Observations through observation method

The awareness of Hippo and of competitors' product

Mode of storing Hippo and opponents' i. e. whether it is on shelve or in the container or inside almirah

The located area of the store i. e. whether it's beside main highway or in the lane or on the square

Type of store

Approximate demography

Observations through routine method was predicated on three perspectives

About Hippo: Whether he will keep Hippo or not, if not the reason why, its supply, reorder period, quality of defective product handling', margin offered, supply of banners and danglers.

About Rival: The competition brand kept, approximate margin they provide.

About the marketplace as a whole: The most selling brand.

The interview strategy aimed to get the intrinsic information on the market functions such as; if the suppliers does not keep Hippo would he like to keep it afterward, the credit coverage, frequency of visit of sales agent, retailer's take on Hippo's online marketing strategy and range of improvement.

Findings by Area

Area: Salt-Lake [KC stop, Law College, Reverse of Hyatt Regency plus some other areas in Sodium Lake]

Sample size = 12

The syndication in the Salt Lake area is managed by Sonata Distribution. Study was conducted on those outlets where products were given by the company. Accompanying sales consultant was Mr. Maiti who works for Sonata Syndication.

Observations by observation method:

The area Opposite of Hyatt is some sort of Slum. It really is beside the key road. The region is not so developed. Most of the shops are very small but product visibility is relatively good as they suspend the chain of Hippo on rope recognized by a bamboo structure.

The area not far from The NUJS Legislation College is quite polished but the outlets are mainly of shack kind and are sparsely distributed. The awareness is good given that they also suspend the chains of Hippo on the rope backed by a bamboo composition.

KC stop is quite dormant. Most of the retailers are neither small nor large. Some of the shops were inside a residential complicated.

Observations by Routine method:

Every shop maintains Hippo.

The reorder level is about a week.

Most of the retailers are extremely content with the supply and availability of Hippo.

The product supplied are almost defect free otherwise it is replaced without much inconvenience.

No banner or dangler comes to almost all of the suppliers.

They aren't very content with the margin proposed by Hippo.

The demand for Hippo is neither too high nor too low. Small load up of Goan Butter and Garlic clove flavor offers the most.

Few retailers are aware of the fact that Hippo is cooked and not deep-fried but none of the vendors pitch it while advertising.

Competitive brands are Lay's, Kur-kure, Cheetos, Zengo, Kids Fun, Bingo.

Bingo provides highest margin while Lay's is the most selling brand.

Observations by interview method: Some of the sellers demanded for hanger as these were finding it difficult to store the merchandise.

Other information:

Retailer Structure:

With 12 parts (a chain) of small load up Hippo, a small pack of Hippo is free

With 18 pieces of medium pack Hippo, a 200ml Tetra pack Frooti is free

With 34 pieces of medium pack of Hippo, two 200ml Tetra pack Frooti is free

The sales consultant (Mr. Maiti) stocks a good romantic relationship with the suppliers. The retailers respect him and trust him which really is a prime requisite for the last mile distribution.

Mode of transportation: Light Commercial Vehicle (Vehicle).

Area: From Nager Bazar towards Airport terminal Gate no 1

Sample size = 12

The circulation in the Nager Bazar area is monitored by Dazzle Infotech. It is a new circulation house. Previously the syndication was done by various other house. The reason behind the change is that, the earlier distributor cannot perform. Study was conducted on those retailers where products were supplied by the company. Accompanying sales rep was Mr. Sukalpa who works for Dazzle Infotech

Observations by observation method:

Proper Nagerbazar is quite active but while moving towards Air port Gate no 1, the area became quieter and less developed.

Factories like Jessop Instructor Works, Ordnance stock, His Master's Voice(HMV) is placed on the area of research.

Most of the outlets in the correct Nagerbazar area are neither large nor small but the shops towards airport terminal gate no 1 were smaller plus some were of the type of shack.

Product awareness is not as hardly any hangers have been given by the Keventer. However some shops manage to screen Hippo by using competitor's hanger.

Observations by Agenda method:

Most of the shops keep Hippo.

The reorder level is approximately weekly.

All the retailers are extremely satisfied with the supply and availability of Hippo.

The products supplied are usually defect free in any other case it is changed without much trouble.

No banner or dangler is supplied to almost all of the merchants.

They are not very content with the margin made available from Hippo.

The demand for Hippo is on top of the crest. Small pack of Punjab Da Pickle taste markets the most.

Few retailers know about the actual fact that Hippo is cooked and not deep-fried but none of them of the suppliers pitch it while selling.

Competition brands are Lay's, Kur-kure, Cheetos, Bingo, Mukhorochok POKER CHIPS, Lehar, Haldirams, Parle (Products).

Lay's provides highest margin which is the most selling brand.

Observations by interview method

Most of the sellers demanded for hanger as these were finding it difficult to display the merchandise.

A product lot, that was provided about half a year before was faulty. It has already established a negative effect on the brand image and conception of Hippo one of the retailers.

Some suppliers complained about faulty products which were supplied by the sooner distributor weren't replaced.

Retailers are very confused of multiple distributor, multiple section policy.

Most of the retailers were searching for credit policy and some of them even said that if credit insurance policy is not offered then it might be difficult for them to sell Hippo anymore.

Other information:

Retailer Structure:

With 12 pieces (a chain) of small load up Hippo, a little load up of Hippo is free

With 18 pieces of medium pack Hippo, a 200ml Tetra load up Frooti is free

With 34 pieces of medium pack of Hippo, two 200ml Tetra load up Frooti is free

The sales representative (Mr. Sukalpa) is very hard-working but right. He is not allowed to exceed the schemes as per the order of his firm's proprietor, Mr. Saikat Das. The proprietor feels that if retailers are provided beyond the schemes provided, then it could work initially but in the long term it would dilute the brand bargaining electricity.

Mode of transport: Truck rickshaw

Area: Lake Town

Sample size = 11

The circulation in the Lake Town area is been able by JDP Enterprise. Survey was conducted on all the shops that kept top quality snacks. No accompanying sales consultant was present with us.

Observations by observation method:

Lake town is quite busy and is a considerably a big market.

The area has institution, movie theater, departmental stores, large top quality showroom etc.

Most of the retailers in the Lake Town area are on much larger side but shops towards S K Deb lane were smaller. S K Deb lane also had a fish market type of market.

Product visibility is great for competitor's brand. Parle Potato chips can be found outside every shop with very good product design and orientation.

Observations by Routine method:

Only 27% of the sample continues Hippo and 36% of the sample used to keep Hippo.

The reorder level is approximately weekly.

All the retailers are more or less satisfied with the source and availability of Hippo.

The products offered are usually defect free otherwise it is changed without much inconvenience.

No banner or dangler comes to any of the retailers.

They aren't satisfied with the margin made available from Hippo.

The demand for Hippo was initially high but currently it is low. Small load up of Punjab Da Pickle and Gujrati Mango Chutney flavour offers the most.

Only 27% suppliers are aware of the fact that Hippo is cooked and not fried and nothing of the merchants pitch it while providing.

Competition brands are Lay's, Kur-kure, Cheetos, Bingo, Haldirams, Parle (Products), Apna, Pogo.

Lay's provides highest margin and is also the most selling brand.

Observations by interview method

Most of the retailers demanded for hanger as these were finding it difficult to display the merchandise.

A product whole lot, that was offered about six months before was defective. It has already established a negative effect on the brand image and perception of Hippo one of the retailers.

Some stores complained about defective products that were supplied by the earlier distributor were not replaced.

Credit facility is provided for some of the select retailers. Among the shop doesn't keep Hippo because the contrary shop gets credit center but he will not. It hampers the morale of the store.

Most of the merchant said that no person demands for Hippo. They would only keep Hippo if it is market become steady.

Many of the suppliers said that nobody approached from the Company( Keventer).

Out of 36% of vendors who use to keep Hippo, lots of the stores said that they will not keep Hippo because of its low sales.

Area: New Market

Sample size = 17

The circulation in the Lake Town area is been able by Haji Enterprise. Study was conducted on all the outlets that kept top quality snacks. No accompanying sales rep was present with us.

Observations by observation method:

New market is one of the most popular market segments of Kolkata. It's mostly dominated by hawkers but one can find any portion of shops starting from branded franchise, shopping center, large retail and even grey/black market peddler.

As it is not a personal area, snack foods are usually bought by impulse.

As almost all of the retailers are small, their shelve space is bound. So they keep the most advertising brands on the shelve. Moreover competitor brands overflow their product directly into their shelve leaving no space for Hippo.

Observations by Schedule method:

None of the retailers keep Hippo presently. However 35% of the shops use to keep Hippo previously.

47% of the retailers were not contacted by Keventer.

Some of the shops that use to keep Hippo before had reorder period of about a week plus some per month.

Retailers are not at all satisfied with the supply of Hippo.

Some of the merchandise that were supplied earlier got defect and were not replaced properly.

No banner or dangler is supplied to the retailers.

They aren't satisfied with the margin provided by Hippo.

The demand for Hippo was always low. The best selling flavor cannot be gauged.

Only one of the retailers was aware of the fact that Hippo is cooked rather than fried but he did not pitch it while advertising.

Competition brands are Lay's, Kur-kure, Cheetos, Bingo, Haldirams, Peppy.

Lay's provides highest margin and is the most selling brand.

Observations by interview method

Few retailers will be ready to keep Hippo if contacted by the company.

Supply has been halted for half a year during the changeover amount of distributor re-appointment.

Some vendors complained of poor quality product.

Credit facility had not been provided to any of the retailers.

Most of the suppliers would keep Hippo after the product is demanded by consumers.

Out of 35% of sellers who use to keep Hippo, some of the suppliers said that they will not keep Hippo due to its low sales plus some said nobody came from the business after one or two consignments i. e. no follow-up.

Area: Ultadanga, Bagmari, Kankurgachi and Murari Pukur

Sample size = 25

The circulation in the Lake Town area is supervised by Sree Laxmi Distributor. Survey was conducted on all the retailers that kept branded snacks. No accompanying sales rep was present around.

Observations by observation method:

Proper Ultadanga and Kankurgachi is very occupied with lines of outlets of different sizes. Most of the retailers are on the bigger side. The market is very developed. Many office buildings and home complexes can be found in Ultadanga, Kankurgachi area. They can be prime location and attaches to various areas of Kolkata. However Bagmari has a slum and Murari Pukur is not developed.

Visibility of the product in the outlets are good in all the areas. However

Observations by Plan method:

Only 16% of the retailers keep Hippo currently. However 32% of the outlets use to keep Hippo recently.

Some of the retailers that use to keep Hippo previously had reorder period of in regards to a week and some per month.

Most of the retailers are not whatsoever content with the way to obtain Hippo.

Some of the products possessed defect and weren't changed properly.

No banner or dangler is supplied to any of the retailers.

They aren't satisfied with the margin provided by Hippo.

The demand for Hippo was on the upper side. Most advertising taste is Punjab Da Pickle.

Very few suppliers were alert to the nutrition simple fact of Hippo but none of the pitch it while reselling it.

Competition brands are Lay's, Kur-kure, Cheetos, Bingo, Haldirams, Peppy, Pik-Nik, Timbakto, Ringa-Ring, Simba and local pouched treats.

Lay's provides highest margin and is also the most selling brand.

Observations by interview method

Few retailers are ready to keep Hippo if contacted by the business.

Supply has been halted for a few month or two. Associated with as yet not known.

Many of the suppliers will not keep Hippo as a result of competition brand that floods their product in to the shelve, leaving no shelve space for Hippo. One of the merchant said that he does not keep Hippo because the sales consultant was rude to him. Some of the retailer said that they could keep Hippo if they're being given by rack and container because of both; lack of space and trouble created by mice.

Credit facility was not provided to the retailers.

Many of the retailers were never contacted by the business. In those outlets when asked if they interested to keep Hippo, almost all of them had a positive gesture.

Area: Shyambazar and its own neighboring areas

Sample size = 53

The distribution in the Lake Town area is maintained by Baba Taraknath Agency. Survey was conducted on all the shops that kept branded snacks. No accompanying sales consultant was present with us.

Observations by observation method:

The area is very clean and prepared with wide roads and greenery. The area has a touch of tradition and it is one of the oldest moderate regions of Kolkata.

The kiosks of the shops are small but has a greater depth.

The area isn't that active but lively.

The shopkeepers are very well-behaved plus some of these even offered some valuable recommendations.

The area has got everything beginning with school, cinema, pilgrimage etc.

Shops with local pouched appetizers as exclusive product are available.

Pogo Chips has good penetration and is noticeable in many retailers.

Observations by Routine method:

47% of the outlets keep Hippo currently. However 20% of the outlets use to keep Hippo recently.

There is nothing particular about the reorder period the shops. For a few shop the reorder peroid is weekly, some fortnight plus some even a month

Most of the retailers are quite content with the supply of Hippo.

Some of the products acquired defect and weren't replaced properly.

No banner or dangler comes to almost all of the retailers. Only one 1 shop got a rack.

They are not content with the margin proposed by Hippo.

The demand for Hippo was on the lower side. Most selling flavour is Punjab Da Pickle.

Considerably more merchants know about the nutrition truth of Hippo but none of them of the pitch it while advertising it.

Competition brands are Lay's, Kur-kure, Cheetos, Bingo, Haldirams, Pogo, Nabadeep, Apna, Max-G, Tofo, Keka, Mukhorochok, Pringle, Tofo, Sony, Timbakto, Zeng and local pouched treats.

Local pouched snack and Pogo provides highest margin but Lay's is the most selling brand.

Observations by interview method

They said the plans provided by Lay's is way better. Lay's has program that if indeed they can sell Frito-Lay product of Rs 10000/month they would get cash rebate on further purchase and products.

Some said that the Hippo as a product is poor. Its just a toasted breads sprinkled with spices. Its won't suffice upto the expectation and flavour of the consumer

The sell goes up when the schools are open.

Most of them complained about the money insurance plan of Hippo.

One of the store said that his shelve space is limited and he'd only the best selling products and more-over Hippo doesn't provide either great margin or credit service and moreover no one demands for this. So he doesn't think it is possible to keep Hippo.

Some of the merchants that use to keep Hippo previously said that the initial sales were up however the sudden halt in the supply broke the momentum of sales.

Some outlets were never contacted.

Some store said that Hippo being truly a new product must be pushed which they think it is quite troublesome when evaluated with the margin Hippo offers.

Area: Baisakhi and C K Market, Sodium Lake

Sample size = 9

The distribution in this area monitored by Sonata Syndication. Study was conducted on all the outlets that kept top quality snacks. No associated sales agent was present around.

Observations by observation method:

The Baisakhi area is very clean and organized with wide streets and greenery. The area is trendy and has some modernization.

The shops are incredibly sparsely sent out and can be found only as clusters.

The area is not active whatsoever.

Observations by Plan method:

Only 11% of the suppliers keep Hippo presently. However 56% of the shops use to keep Hippo recently.

The reorder amount of the shops are in regards to a week.

Most of the suppliers are quite content with the current supply of Hippo.

Some of the merchandise that were given by earlier distributor that had defect weren't changed properly.

No banner or dangler comes to most of the stores.

They are pretty much content with the margin offered by Hippo.

The demand for Hippo was at first on the bigger side but the pause of resource hampered the sales. Most selling flavour is Punjab Da Pickle and Goan Butter and Garlic.

None of the vendors know about the nutrition reality of Hippo.

Competition brands are Lay's, Kur-kure, Cheetos, Bingo, Haldirams, Pogo, Peppy.

Lay's rovides highest margin and it is the most selling brand.

Observations by interview method

Initially the sales of Hippo was good however in the scheduled course the product supplied had defect. The distributor was replaced by a fresh one and the old defective product that were supplied by the earlier distributor were not replaced which influenced the morale of the dealer and they lost their trust on Parle.

Racks, almirah or banner; neither of them was ever supplied and they find it hard to store the merchandise.

There is not a promotion or sufficient advertisement about the merchandise, because of this, retailers find it difficult to sell it. They must push the merchandise to liquidate the money.

There have been some scam in this area. Rumour says a SR gathered around Rs 18 lakh from the marketplace but did not send it to the Keventer Agro.

PHASE TWO

This phase included learning by observation. We had to observe the full total sales treatment which includes following stage:

Division of Products - Keventer Agro has an extremely wise sales and circulation policy. They don't really source every product to each distributor but divide those products among each distributor within the same area. Reason being, the company ensures not only the highly profitable set up products, but also new products with low primary sales reaches to the finish of supply string. Before, Hippo was supplied to all the distributors of a particular area but as coordination became difficult, they may have changed their insurance plan and now supplies and then one distributor of the specific area.

There are three divisions:

Division A -

200 ml, 400 ml, 1. 2 litre of Frooti

200 ml of Appy

200 ml of LMN

Rs 5, Rs 10 and Rs 20 of Hippo

Division B -

160 ml 500 ml 1. 5 litre and 2 litre of Frooti

500 ml, 1 litre, 2 litre of Bailley Packaged Drinking Water

600 ml of Bailley Soda pop.

250 ml, 500 ml, 1 litre of LMN

Division C - (Full information about this division is not known since I never really had the opportunity to work in this divison)

100 ml, 250 ml of Frooti

300 ml, 500 ml and 1 litre of Appy Fizz

100ml LMN

Division of area - Each area is divided into five different distribution areas. They sell their products to those five areas in five days and nights i. e. Monday to Friday. The sixth day which is Sunday can be an extra day where the sales representatives will the miscellaneous work such as:

If an order was not provided on the deadline then that product is shipped on Sunday.

They perform an approximate study to calculate or forecast the forthcoming weekly demand.

If an replacing of faulty product had not been done on the deadline then it is also done in Saturday

Selective loading - The products that are being loaded in the LCV aren't fixed. They weight it according to the demand estimation of the area. For instance, on a particular day, 400ml of Frooti is filled more than common quantity; this is because, their might are present some particular shop for the reason that particular area that continues only 400ml Frooti while on various other day 200 ml Frooti tetra load up is loaded more with regards to the buying design of the shops on that particular zone. The sales staff can judge from other work experience in that particular area.

Sometimes the sales associates are given goal. For example: If they can sell 100 conditions of Division A products on a particular day, they would get some incentive(Rs 250 extra). Then for the reason that occasion, Section A products are packed more.

Total stock of the stock point is mentioned on daily basis.

Selling - Each sales representative(SR) has different design of selling. Some capitalize on romance between him and retailer and some on communication skill.

Relationship marketing: In this type of marketing process, the SRs does not start conversing business from the first case, somewhat he greet the retailer, talk about basic things regarding current affairs or about family which helps him build the rapport and trust. The trust and rapport are psychological tool to make an impression on the mindset of the dealer making it difficult for the dealer to reject the SR's advertising proposal.

Sometimes the SR s shares such good romantic relationship with the merchants that they don't really even ask whether he needs anything or not but immediately dump the merchandise and produces the invoice. Credit sales are definitely more by this procedure because the SR will not want to freeze the warmth of the relationship.

Communication Marketing - In this procedure the SR starts talking about the business enterprise from the first go. The deliberation of the plans or price looks for the attention of the stores. SRs encourage the retailers by giving a specific picture of the business model. For example: Suppose the shop is near a school, he would immediately say with much conviction that Hippo will sell and with Rs 1. 23 margin per piece, it would be a great business for him. He further elaborates on the techniques and produces a very rosy picture.

The likelihood of credit sales are low.

Cash is completed by the distributor's representative and the bills by the company representative.

Note: Most of the SRs do not weight Bailley Packaged NORMAL WATER or Bailley Soda into the LCV, even if indeed they weight it, it is within meagre quantity. The reason why which we sited is; as Bailley Soda is a fresh product and Bailley Packaged Drinking Water a low selling item, the SR s has to convince the merchant about the product that involves some significant amount of time. The work of the SRs are judged by the amount of situations they sell rather than by the merchandise, so they find it prudent to market only Frooti and Appy which are of high selling category that requires less of your time to sell. For the amount of commitment necessary to sell a case of Bailley Packaged NORMAL WATER or Bailley Soda pop, the SR can sell 4-5 circumstances of Frooti or Appy. In this case, the aim of Division of the merchandise( mentioned early) does not meet.

Collection - It is an activity of collecting money for the credit sales made. Usually Keventer does not encourage credit sales. However if any credit sales are created, the credit period is generally 2-3 days or the time till another order, which is previous. Since Frooti has a good bargaining power, collection is simple enough.

Submission - The SR s and the distributor's rep must submit every expenses and cash respectively to the stock point. The cash collected and the total of the invoice has to tally.

Phase III

Refer Annexure II and III for even more detail.

In this phase, we were designated to analyze the market of Bailley Soda pop and BPDW. We were given an example of Bailley Soda. The region and aim of the research were well referred to by the company representative during the briefing. The responsibilities were:

To take notice of the competition brand in the market and please note it.

To visit each potential outlets and give a short demo about the merchandise(Bailley Soda and BPDW) that engaged product information and communication marketing( discussed above).

To note down the Shop's name and phone number of the interested merchant outlet.

To make a note of the opinions of the uninterested store outlet.

Target Group:

The outlets that already maintains Soda and PDW

Foreign Liquor Shop

Dhaba and Restaurants

Pharamaceutical Shops

There has been many problems sited. A few of are:

The soda market is dominated by Lehar Soda. Some of merchants said that they don't even keep Kinley Soda pop since the demand for Lehar soda pop is somewhat more. So the vendors does not find keeping a new product with low recognition is feasible.

Some suppliers said that customers demand for cool Soda pop or PDW. Parle Agro has a very limited provision for fridge therefore the retailers find it difficult to sell Soda pop or PDW at room temp. However some of the suppliers use refrigerator provided by the rivals, to keep Bailley Soda pop or PDW but they has to face many problems from the opponents.

The competition brand that floods their product into the shelve, leaving no shelve space for Bailley. A number of the interested sellers said that they would only keep Bailley following the huge existing stock of the rivals can be purchased.

Some of the suppliers said that they would keep Bailley only following the 12 months ends.

Some vendors said that they are happy with the competitor's performance. They offer a large range of products, fridge, banner, advertisement and in addition their product markets. They don't want to hamper their relationship with the rivals by keeping Bailley.

The awareness of Bailley is low. They has to push Bailley to make a sell. They aren't prepared to keep Bailley if credit is not provided to them.

Very few shops were ever approached to advertise Bailley.

Restaurants, Pharmaceutical shop and are usually more vunerable to keep Bailley as most of them weren't contacted by the competiors. However a few of the pharmaceutical outlets were approached by Bisleri.

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