"ITC Bingo snacks benchmarking with its competitors" is A PROJECT STUDY REPORT ON TRAINING UNDERTAKEN AT ITC ltd. "Snack food industry is worth Rs 100 billion in value and over 4,00,000 tonnes in terms of volume"
"ITC Bingo snacks benchmarking with its competitors" is A PROJECT STUDY REPORT ON TRAINING UNDERTAKEN AT ITC ltd. "Snack food industry is worth Rs 100 billion in value and over 4,00,000 tonnes in terms of volume"
"ITC Bingo snacks benchmarking with its competitors" is A PROJECT STUDY REPORT ON TRAINING UNDERTAKEN AT ITC ltd. "Snack food industry is worth Rs 100 billion in value and over 4,00,000 tonnes in terms of volume"
ITC Bingo snacks benchmarking with its competitors
SUBMITTED TO :
Mr. PRAVEEN KUMAR SAINI
AREA EXECUTIVE-FOOD (MEERUT) ITC LIMITED
BY: GAURAV PANDEY MBA 3 RD SEM UTTARANCHAL INSTITUTE OF MANAGMENT ACKNOWLEDGEMENT
I express my sincere thanks to my project guide, Mr PRAVEEN KUMAR SAINI, AREA EXECUTIVE , ITC Foods Division, MEERUT for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support for literature, criticalreviews of project and the report and above all the moral support he had provided to me with all stages of this project.
DECLARATION
I, GauravPandey a student of Uttaranchal Institute of Management(UIM), Dehradun ,hereby declare that I have worked on a project titled "ITC Bingo snacks benchmarking with its competitors" during summer internship at ITC Ltd.,Meerut in partial fulfillment of the requirement for the Masters of Business Administration.I indemnify my research work to be authentic and original to the best of my knowledge in all respects of the process carried out during the project tenure. My learning experience at ITC Ltd, Meerut and in the market of the Meerut Region, under the guidance of Mr. Praveen Kumar Saini, AREA EXECUTIVE food division has been truly enriching.
INDIAN SNACKS INDUSTRY
AN OVERVIEW
Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack i s described as a small quantity of food eaten between meals or in place of a meal. Snack food generally comprises bakery products, ready- to-eat mixes, chips, namkeen and other light processed foods According to the ministry of food processing, the snack food industry is worth Rs 100 billion in value and over 4,00,000 tonnes in terms of volume.Though very large and diverse, the snacks industry is dominated by the un- organizedsector. According t o an Apeda survey al most 1, 000 snack items and 300 types of savouries are sold across India. The branded snacks are sold at least 25% higher thanthe unbranded products. Savoury snacks have been a part of Indian food habit, sinceages . Though t her e i s no par t i cul ar t i me f o r s nacks , nor mal l y t hey ar econsumed at teati me. The variety i s al most mi nd-boggli ng wi th specialties from all regions, which have gained national acceptance.The industry has been growing around 10% for the last three years, while the brandedsegment is growing around 25% per annum to stand at Rs 5,000-Rs 5,500 crore, due to various reasons like Multiplex culture, snacking at home while watching TV, pubsand bars (where they are served free). AC Nielsen's retail audit shows that the largesales volumes are due to a marked preference for ethnic foods, regional bias towardsi ndi genous snacks and good value-for- money percepti on. Of course t he brandedsegment is much smaller at Rs 2,200 crore, which is what makes it so attractive to food Companies that are l ooki ng at bigger shares. In the branded snacks market, to get down to basics, Frito Lay commands a share of 45%, followed by Haldirams at 27% and ITC at 16%. The rest is divided between a handful of new entrants, wannabes andmany regional players.Of the wide range of snacks available, potato chips constitute a sizeable segment of theIndian snack food indust ry, accordi ng to India In foli ne. The potat o chip market i sg e n e r a l l y a n u n o r g a n i z e d i n d u s t r y . Ea r l i e r a l l p o t a t o c h i p s n a c k p r o d u c t s a r e manufact ured and sold locally. There i s al so no uni form standard for packagi ng, as there is in Europe, the United States and other more developed regions. Many snack foods are sold l oose or packaged i n poly-pouches, which may only be fol ded, or i n some cases, stapled closed. As the Indian economy continues to grow, and productionstandards improve, many snack food companies are making significant investments intoplant equipment and packaging machinery.Pepsi Foods Ltd., now known as Frito-Lay India Ltd., produces India's largest snackfood manufacturers brands, including Ruffles, Hostess, Cheetos and Uncle Chips story is an example of how American recipes were adjusted to satisfy local tastes.Procter & Gamble' s Pringles brand of potat o cri sp was l aunched in Del hi in 1999. Pringles is al so a baked potat o cri sp, unli ke many other pot ato based Indian snack foods t hat are fried. P&G currently i mport s the Pri ngl es product and therefore t heproduct has been priced at a premium and is marketed to a micro-niche.
PROFILE OF THE ORGANIZATION:
Establishment: Incorporated on 24 August 1910 as the Imperial Tobacco Company of India Limited, the company's name was changed to ITC Limited in 1974. Rated among: WorldsBest Big Companies by Forbes magazine, ITC r anks third on all major profitparameters among India's private sector corporations. ITC employs over 20,000 peopleat more than 60 locations across India. It has a turnover of $3 billion. Growth and Diversification: ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75 billion. ITC is rated among theWorld's Best Big Companies, Asia's 'Fab 50' and the World's Most ReputableCompanies by Forbes magazine, among India's Most Respected Companies byBusiness World and among India's Most Valuable Companies by Business Today. ITCalso ranks among India's top 10 `Most Valuable (Company) Brands', in a studyconducted by Brand Finance and published by the Economic Times.ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,Branded Apparel, Personal Care, Stationery, SafetyMatches and other FMCG products. While ITC is an outstanding market leader in itstraditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports,it is rapidly gaining market share even in its nascent businesses of Packaged Foods &Confectionery, Branded Apparel and Stationery.
As one of India's most valuable and respected corporations, ITC is widely perceived tobe dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration"a commitment beyond the market". In his own words: "ITC believes that its aspiration tocreate enduring value for the nation provides the motive force to sustain growingshareholder value. ITC practises this philosophy by not only driving each of itsbusinesses towards international competitiveness but by also consciously contributingto enhancing the competitiveness of the larger value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at creating multipledrivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategicforays into new businesses are expected to garner a significant share of these emerginghigh- growth markets in India.ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC isone of the country's biggest foreign exchange earners (US $ 2.8 billion in the lastdecade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through thepower of the Internet. This transformational strategy, which has already become thesubject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantlyenhancing the Company's marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions,including e-enabled services and business process outsourcing.ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating.ITC employs over 21,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizingenvironment to consistently reward more than 3, 88,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching visionof the company is expressively captured in its corporate positioning statement:"Enduring Value. For the nation.For the Shareholder."
BRANDS OF ITC
Within a relatively short span of time, Company has established vital brands like Aashirvaad, Sunfeast, Dark Fantasy, Bingo!, Yippee!, Candyman, mint-o, Kitchens of India in the Branded Foods space;
Essenza Di Wills, Fiama Di Wills, Vivel and Superia in the Personal Care products segment;
Classmate and Paperkraft in Education & Stationery products;
Wills Lifestyle and John Players in the Lifestyle Apparel business;
Mangaldeep in Agarbattis; Aim in Matches and so on.
In India's agricultural space, ITC's e-Choupal is a brand that is synonymous with farmer empowerment while in the services sector and in the hospitality segment.
ITC Hotel brand is an embodiment of Responsible Luxury apart from its other high quality offerings such as WelcomHotels, Fortune and WelcomHeritage. ITC Hotels have pioneered the concept of branded cuisine in India with globally acclaimed restaurants including Bukhara, Dum Pukht and Dakshin.
As a result, 57% of net segment revenue of your Company is now from businesses other than cigarettes
MAJOR SECTOR Which constitutes 43% revenue alone , the cigarettes segment
ANALYSIS OF ITC BINGO vs COMPETITOR BRANDS POTATAO CHIPS: RED CHILLI BIJLI INTERNATIONAL CREAM & ONION
PREMIUM SALTED SPICY MASALA REMIX
JUICY TOMATO KETCHUP PICKLE TICKLE
OYE PUDINA
BRIDGES: (MAD ANGLES)
TANGLES:
TEDHE MEDHE:
ABOUT BINGO The launch of Bingo! On 14TH March 2007 marked ITC's foray into the fast growingbranded snack foods segment. Bingos portfolio includes an array of products in both Potato Chips & Finger Snacks segment. Bingo is positioned as a youthful andinnovative snack, offering the consumers with choice in terms of both formats and flavors. The launch is symbolic of ITC Foods' distinct approach of introducing innovative anddifferentiated products in a largely undifferentiated market place. Bingos launch wasstrategically timed around the World Cup.The idea was to get the consumer to take that first bite.The company has positioned this brand as a fun brand targeting at theyouth. Bingo! Potato Chips the crunchiest potato chips
Bingo! Potato Chips are all about irresistible combinations. They are a combination of crunchy potato chips along with yummy flavors. These flavors range from traditional favorites like Salted to innovative ones such as
Red Chilli & Lime Pickle.Whats new?Bingo! Pickle Tickle: Some lemons remain lemons, the tastier ones become lime pickle. But the naughty pickled lemons escape the jar, mix with crunchy potato chips totickle your taste buds! A bite of the mouth watering Bingo! Pickle Tickle Potato Chipswith just the right spicy and sour flavor of pickled lime in crunchy potato chips. It will surely make the taste buds crave for more! Pickle Tickle is currently being launched inthe Southern parts of India.
Bingo! Mad Angles "har angles se Mmmm" One of the biggest successes from the Bingo! portfolio, Bingo! Mad Angles has carved a niche for itself in the consumers mind and is synonymous with the perfect triangular snack.A combination of innovative flavours on a traditional khakra base , Mad Angles is a snack that is true to taste and perfect flavour delivery as well as shape, making it a snack thats truly "har angles se Mmmm"
Bingo! brings you the chaat flavour that you can savour without having to stop by the "galikachaatwala" .Let your fingers dive in to the perfect combination of the taste of fresh pudina, tangytamarind, creamy yogurt and of course, the crunchiness of khakra triangles
Bingo! TedheMedhe A twist in every stick
Bingo! TedheMedhe is the popular spindle shaped format from Bingo! that is a delicious blend of handpicked spices with an aroma that makes one crave for more. The taste of fiery sparks which masalas leave on ones tongue is an experience with savouring!
Bingo! Tangles The latest addition to the Bingo! portfolio is Bingo! Tangles in masala and tomato flavours. Each piece of this innovative crunchy snack is made out of strands loaded with lip smacking masala or tantalizing tomato flavours. Once bitten, they break into many more delicious strands in the mouth.
WHATS IN THE NAME OF BINGO!
SWOT ANLAYSIS OF ITC BINGO STRENGTH: 1.Unique and popular branding and advertising on TVCs and print ads
2.Excellent distribution and availability
3.Great variety of flavours gives customers options 4. Reasonable pricing ensures spontaneous purchase 5. Strong backing of ITC Limited brand name WEAKNESS: 1.Health conscious people do not prefer such snacks 2. Limited penetration in rural markets
OPPORTUNITY: 1.Leverage successful brand ITC
2.Advertise more through online and offline media
3.Buy out local competition
4.More variety of flavours will help brand grow THREATS: 1.Threat from various substitute snacks
2.Cheaper rates being provided at places like Walmart store
COMPETITION AMONG VARIANTS OF BINGO AND COMPETITORS Potatato chips: BINGO LAYS PARLE UNCLE CHIPS HALDIRAM (CHIPS) Premium salted Classic salted Classic salted Plain salted Classic salted Spicy Masala remix Chilly Mexicana Chatpata masala Spicy paprika Juicy tomato Spanish tangy tomato Tangy tomato Oye pudina Spicy treat Pudina treat Red chilli bijli Magic Masala Masala masti Mast masala International cream onion American cream and onion Cream n onion
ITC has various distributors as per area/regions who follow the chain of transferring the products to their clients. These distributors are independent proprietors/ partners who are the mediators between the company and the customer. Apart from the basic relation of a mediator, the distributor plays a very important role as it passes consistent raw information as to which product is performing in the market. Following are the important functions followed by distributors:
Order taking process
The order taking process starts from the customer point from where a Purchase Order (P.O.) is sent directly to the distributor of ITC via salesman. Further, the P.O. is manually transferred into an Order Booking Report by the accounts head, further it's classified as per the availability of the products and then Load Slip is prepared. The Load slip is send to the stores head that dispatches the products as per specification and order.
Delivery process
The Delivery process starts after the goods are been loaded in trucks and are ready to move towards clients' stores. One copy of received P.O. is taken along with original and duplicate copies for reference. At the clients store the foods need to be arranged as per the P.O., which is inspected by an official with the help of the Good Inspection Note (G.I.N.). Further after the inspection the official sings on the duplicate copy and provides a Goods Receipt Note (G.R.N), which is filed for reference and proof.
Warehousing & Inventory management:
Warehousing and inventory management is the prime duty of a distributor. The distributor has to maintain all the inventories monthly; he does this by following a system of Estimated Consumer Demand (ECD). Estimating average three months sale of various products individually and thin keeping additional stock of 7 days per product develop this process a) Stacking
Stacking includes the maximum capacity at which the product could be kept on one another i.e. a limited amount of boxes/cases only can be kept vertically over another.
b) Handling Handling includes the ease of using the product. Example: Glass products have to be used very carefully to avoid damages. Whereas non-breakable products could be used with more ease as chance of damages are low.
c) Flooring
Flooring includes the type storage required for particular products. Example: products like atta, salt etc require a wooden or carpeted flooring to avoid it catching moisture.
d) Storing
Storing includes the product placement in warehouse. Example: if products like atta, salt, biscuits etc are kept next to products like agarbatti, soaps, perfumes etc it may catch the fragrance of those products leading to unhealthy outcomes. Care is taken to control Pest and other mishaps in the warehouse and proper ventilation and hygiene system is desire for better storage.
Stock rotation / damaged policy
Stock rotation is the blood of this business. If there is no regular stock rotation than the company / product cannot survive for long in the market. Stock rotation is followed by the FIFO method i.e. First-in First-out. The products that come in first in the store those are the ones that go out first. This has to be done to avoid wastage of products and to have a control over the "best before use" policy and expiry. The company accepts manufacturing defects and damaged goods. These damaged goods are returned to the company after the inspection done by the distributor.
ITC-Bingo has 3 WHOLESLAE DISTIBUTORS in MEERUT city which employee A TOTAL OF 10 DS. WHICH IN COMBINE COVERS 60 ROUTES/BEATS.
First distributor looks for old MEERUT (AADI ENTERPRISES) , and has a unique coverage of Bingo outlets
Second distributor looks for new MEERUT (SAI ENTERPRISES) , SHASTRI NAGAR
Third distributor looks for new MEERUT (SK ENTERPRISES), SHASTRI NAGAR
EVERY DS PROVIDES DAILY REPORTS TO THE SUPERVISOR EACH DAY FURTHER ITS THE SUPERVISOR WHO REPORTS TO THE AREA EXECUTIVE OF THE PARTICULAR DIVISON. STUDY OF SELECTED RESEARCH PROBLEM
STATEMENT OF RESEARCH PROBLEM In the branded snacks market, to get down to basics, Frito Lay commands a share of 45%, followed by Haldirams at 27% and ITC at 16%. The rest is divided between a handful of new entrants, wannabes and many regional players. Out of these ITCsBingo is a new entrant in the market, which was launched in 2007. ITC has launched Bingo in a wide variety of flavours and formats, ranging from potato chips to finger snacks. Because of its different and catchy advertisements Bingo has created a buzzin the market. Therefore, our aim was to find out the most popular flavour of Bingo among all the offerings.We began our analysis by dividing people into those who like to eat snacks and those who dont. We based our study on the survey of people who like to eat snacks. This survey was conducted in MEERUT. To collect the data we designed a questionnaire
STATEMENT OF RESEARCH OBJECTIVES
The main objectives of our research were as follows: 1.To study the snacks industry as a part of food processing industry. 2. To study the company profile of ITC Ltd,the makers of BINGO. 3. To examine the comparative study between Bingo, Parle, Lays, Diamond 4. To examine the comparative trends in snacks industry. 5. To study the Difference between Ordering stock & Ready Stock. 6. To ensure the availability of Itc-bingo. 7. To examine the sales of Itc product & other products as well as schemes for that. 8. To analyse and interpret the results of sample collected. 9. To determine the future course of action by ITC by offering suggestions through thesamples collected. 10. To find conclusions to our project.
RESEARCH DESIGN & METHODOLOGY
Research design is the basic framework which provides guidelines for the rest of research process. It specifies the methods for data collection and data analysis .In this research project we have used the survey method of data collection, to be more specific questionnaire method. I conducted a survey in MERRUT. Respondents in the sample size were asked to fill the questionnaires to gather the data.
RESEARCH DESIGN: The study is conducted by both quantitative data & qualitative data. There are two types ofdata i.e.Primary data (Collected from the questionnaires, interview, and observations) & The Secondary data (which is to be collected by ITC website, internet, books and newspaper)
DATA COLLECTION TECHNIQUE:
Primary Data:- 1) Interview with retailers and customers of snacks 2) Questionnaire. 3) Observation. 4) Direct contact with people.
Secondary data: newspaper, Internet and Textbooks
SOURCES OF DATA Desciption of Location: SHASTRI NAGAR, MANGAL PANDEY NAGAR, TEJ GARHI, MEDICAL, GANGANAGAR
SAMPLE SIZE AND METHOD OF SAMPLING Method: The sources of data can be collected from the questionnaires & interview from the customers. Sampling Plan: Sample size : 150 prospectuses Sample segmentation : Sampling Method : Simple Random Sampling Area : Meerut Time : 45 Days
SCOPE OF THE PROJECT
RESEARCHER POINT OF VIEW: Project help to upgrade the knowledge. It helps to give the practical exposure. It gives the information about which kind of product and services provide to the consumers It gives detail information about current situation of the product in the market. It helps to analysis constantly, what is happening in the market. It helps to build the confident in researcher. It helps to apply the proper researcher techniques to make accurate analysis and interpretation.
ORGANIZATION POINT OF VIEW:
It helps to identify satisfaction level of customers. It helps to decision making process related to marketing. It helps to achieve goals and objectives of the organization. It helps to decide future plane and policies. It helps to identify strength, weakness, opportunity and threats of the organization. It helps to overcome the uncertainties related with the raw material and the transportation.
LIMITATION OF STUDY Limited scope:
Biased: Findings are based on the views expressed by the consumers. So it may suffer from biased prejudices of individual
Respondents: Some of the respondents were not co-operative & many seem to be having no interest.
Limited Scope: The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out.The survey has been conducted only in few areas
No time to answer questions: Lack of consumers interest to answer the questions. They seems wastage of time. The information given by the client may be false and biased.
AREA OF QUESTIONING In order to extract the meaningful information from the data collected an analysis of data is done using pie charts, bar graphs etc. Data collected on the basis of two types:- 1. On the basis of Retailers 2. On the basis of Customers
ANALYSIS OF DATA
In order to extract the meaningful information from the data collected an analysis of data is done using pie charts, bar graphs etc.
The first objective of the research project is concerned with finding out what percentage of people likes to eat snacks. The pie chart given below is clear on the percentage of people who like to eat snacks. Out of each 150 respondents 130 like to eat snacks while 10 dont.
The Second objective was to find out how much people spend weekly on snack
87% 13% Sales yes no
From the above diagram it is clear that most people spend about Rs.100 on Snacks in a week
The third objective was to find out whether consumers have tried bingo And on finding I found that 100% consumers have tried out BINGOs flavour
My next objective is concerned with finding out which flavour of Bingo is most preferred
Series 1 0 20 40 60 80 LESS THAN 50 50 -100 MORE THAN 100 Series 1 Series 1 FLAVOURS RESPONDANTS Potatao chips 20 Tangles 15 Mad Angles 50 Tedhe Medhe 30
The above table and pie chart shows the responses of the people. It is clear that Bingos Mad Angles dominates the market for Bingo
The fifth objective was to analyse the reasons for the popularity of the most preferred flavour. For this the respondents were asked what do they like most about Bingo. Following pie chart shows their response 17% 13% 44% 26% Sales Potato chips tangles mad angles tedhe medhe
From the above pie chart it can be seen that people like the taste and quality of Bingo.
Next objective was to find out how much people are satisfied with Bingo.
Following pie chart shows the satisfaction level of people
Sales taste variety quality packaging price others 21% 42% 37% Sales very satisfied satisfied not satisfied My seventh objective was to find out the preferences of people for different brands. Here, my aim was to find out the most popular brand of snacks excluding Bingo
In the above graph we can see that kurkure is the most popular brand among people followed by lays and uncle chips . Next is Haldirams Namkeens. The least popular brand appears to be Pringles. It may be because Pringle is based on American recepies and tastes and the Indian public has not been able to warm up to the American tastes. Also, Pringles is imported which makes it a little more expensive than Indian snacks.
0 20 40 60 80 100 120 lays kurkure parle haldiram pringles uncle chips Series 1 Series 1 FACILITIES PROVIDED BY THE COMPANY TO THE RETAILER
1. SCHEMES OF VOLUME PURCHASE
Cash discount
2. DISPLAY MATERERIAL
Stickers
Banners
G.S. Boards
Racks
Counters
SUMMARY OF OTHER FINDINGS (CONSUMER BASED)
40% people out of 130 people who like to eat snacks feel that as compared to other brands Bingo is much better.
Other 26%feel that Bingo is somewhat better; and
34% feel that Bingo is about the same as other brands.
Bingo is some what worse or much worse than other brands.
When asked some youth in the city only know a fewer brands
In some cases YOUTH get influence by their mates
Another finding was that some people have a view that bingo can compete in the market, but if availability is there.
IMPORTANT FACTORS
OUTLET COVERAGE: Salesmen are covering the whole Meerut cityIn internal areas especially in the city, BINGO is performing well.
VISIBILITY: After covering 25 outlets everyday with the DS, it is found that at more than 20 outlets, BINGO is visible
No visibility of BINGO at the railway station and bus stand
BINGO is visible at more than 1/2 outlets of the total outlets
10 Rs. Pack is mostly visible
MAD ANGLES is considered the most favoured category among all
Stand are not clean & other brands of product in the racks or stand.
TRADE SCHEMES:
Margin is somewhat similar to LAYS but less than Diamond and PARLE
SALES PRACTICES:
On the spot ready stock is provided to the retailers.
Stock is also provided by Ordering stock or Billing process.
CONSUMER OFFERS:
50% extra is provided in TEDE MEDE category 20% extra on potato chips
GENERAL FINDINGS:
We are competing with our prime competitor LAYS.
BINGO is a well established brand.
BINGO is performing well in the internal areas of the city.
MAD ANGLES is on the top of the chart among all categories of BINGO
BINGO CHIPS are competing well with LAYS in small outlets.
DS of ITC, the DS of LAYS are more efficient in handling the grievances of retailer. However the salesman of ITC is knowledgeable according to the response of the retailers.
RETAILERS only issue is that distribution problem persits, and the supply is very low
CONCLUSION
My Project gives me the true knowledge of customer relationship concepts & also helped to understand the working environment of the ITC. The major thing, which I found in my whole project, is as follow:
The market share of Lays is more than Itc.
The distribution channel of both companies is not proper.
Company relation with retailers is credit based, which provided company to penetrate into the Market.
Sincere efforts for Sales promotion are required.
A communication channel between retailers and company is required.
Route in charge should be appointed on all routes in consultation with marketing department.
Information about the companys sales promotional scheme and product development should be communicated to retailers.
Proper distribution of Incentive Package should be provided among retailers.
There is a need to put the image of our product Bingo in the mind of customers before they come to purchase at shop.
Lays has been around for a longer time and has its loyalists. Lays scores on flavour while Bingo is crunchier. Right now Lays has the upper hand but Bingo has a good thing going with new and innovative products like 'TANGLES'
THE OPENING OF WALMART STORE HAS CUT DOWN THE SALE OF THE WHOLESALE DISTRIBUTER
RECOMMENDATIONS AND SUGGESTIONS
RECOMMENDATIONS:
There is vast distribution gap between ITC Bingo snacks and Frito-Lays which has to befilled up in order to increase the sales for that ITC should consider in the surveyed area
Width of Distribution : Total number of outlets covered should be increase in order to bridge the distribution gap.
We can increase the total margin given to retailers.
We can introduce new schemes for: Wholesaler scheme?
Wholesaler is totally interested in margin or demand which has high demand in the market. At present ITC Bingo is in its growing stage if we provide comparatively high margin to wholesaler then it will influence the sale.
Delay in starting of supply vans from respective depot should be checked & a proper time register should be maintained.
Most of the retailers are complaining about non- fulfillment of commitments regarding their sampling. Company should make sure that the retailers get the sampling on time so that they are satisfied.
Most of the retailers are complaining about delay of Chips from the distributors go down to the respective routes.
In order to drive the distribution visibility should be increa.sed at the shops/outlets. Intensive action should be taken in this context BASICALLY at the private colleges canteens ,where youth crowd consume majority of snacks, AND meerut has lot of private colleges. EVEN the school can be targeted, as kids are fond of wafers
Opt for a differentiation strategy because even if people buy wafer but they call LAYS dena or if they buy TEDE MEDE they say KURKURE dena, which has downgraded the sale
Retailers should be provided with some attractive schemes.
Actions should be taken for increasing consumer demand
POP and display activities should be on regular basis.
Salesmen could be trained in such a way that they could take on the spot decisions.
Retailers should be provided with a helpline no. so that they can solve their problem.
Racks, hangers etc. should be provided where ever it is required in order to increase the level of visibility at the outlets.
At the outlets, it is found that in the racks of BINGO, LAYS are being displayed. DS should take action at the outlets or intimate the superiors so that they could take necessary actions
Introduce some better consumer offers at regular interval in order to attract more and more consumers
There should be some arrangement for the retailers so that they can deal with the situation like what if the stock ended earlier? Should I wait for the next visit of DS?
THE MAJOR ONE IS OPENING OF WALMART STORE IN MEERUT HAS AFFECTED THE SALES OD COMPANYS WHOLESALE DISTRIBUTER, because retailer get a huge discount over there, but companys WD has potential of more sale as he has goodwill, his reach is more and its provides credit to the retailer which increases the sale of the product.either company should provide same rate to the WD as of retail store or Apply a strategy which could be in the benefit of the ORGANISATION.
SUGGESTION:
An inspection officer should be recruited who perform surprise inspection of the market and find out the problems.
Salary of the sales personals should be increased so they may get motivated
The supply from the factory to the agency should be good especially the brands like MadAngles & Tedhe Medhe
Name__________________________________Age_________________________ Contact No.____________________________Email-ID______________________________ Gender________________________ Q.N. 1:-Do you eat snacks? Ans:- yes No
Q.N. 2:-How much do you weekly spend on snacks ? Ans:- 20-50 rs. 50-100 rs. More than 100 rs.
Q.N.3:-Have you heard of ITC BINGO? Ans:- yes No
Q.N.4:-Have you ever tried BINGO? Ans:- yes No
Whats the reason_________________________________________ So what is alternate you prefer ____________________________________________
Q.N.5:-Which flavor do you like most? Ans:-1. Potato chips Int. cream onion juicy tomatao ketchup red chilli bijli premium salted oye pudina spicy masala remix