SYNOPSIS

On

“Growth of B.K. Agro Mart from 2017 to

2019 in terms of financial & Market
position.”
Submitted for the partial fulfillment of the requirement
for the award of degree

Of

Master of Business Administration (MBA)

2018-2019

Submitted by: Submitted to:

............................... ...............................
............................... ...............................

(Session : 2018-2019)

COLLEGE NAME
 INTRODUCTION

FMCG INDUSTRY:
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG products are those that get replaced within a year.
Products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products
and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper
products and plastic goods.
FMCG may also include pharmaceuticals, consumer electronics, packaged food
products, soft drinks, tissue paper and chocolate bars.
White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs,
Music Systems, etc.
Presence of many MNCs and intense competition between organized and unorganized
segment.
Low operational cost, availability of Raw materials, cheap labour gives India
a competitive edge.
Penetration of markets is yet to reach maturity level, as rural markets are still untapped.
Automatic investment approval for FDI up to 100%.
Economy growing by more than 6% which would increase the buying power of the
consumers.
Recent survey showing 47% of India’s 1+billion people are under age 20, among which
160mn are teenagers which has14000crs of discretionary income and their families
spend an additional 18,500rs on them every year.
The FMCG sector in India is expected to grow at a compounded annual growth rate
(CAGR) of 9%.
 THE FACTS ABOUT THE FMCG INDUSTRY

FMCG, otherwise known as CPG, is one of the biggest industries in the world and there are a lot of
facts that stand the FMCG industry apart as a career choice.
FMCG companies are behind the biggest brands in the world:
FMCG is all about names, the products which everyone recognises from trips to the
supermarket or from ads on television. The brands that make up this sector are the high
profile ones, the ones everybody knows and loves. Think Coca-Cola, Dettol and Dove. This
is an industry that puts you in living rooms, kitchens and bathrooms across the globe.

The FMCG industry changes fast and is constantly evolving:

It's fair to say there is never a dull moment in FMCG. From the pace at which goods leave
the shelves to the rate of product innovation and career progression, things move quickly.
And it doesn't end there. The brands themselves are changing just as quickly. 40% of brands
on the top 100 list twenty years ago have already been replaced by new names today.

FMCG firms thrive on employee and customer retention:

Employee investment is a big part of the ethos of the FMCG world. Perhaps it's because we
understand the importance of loyalty. Customer loyalty can make or break a brand. Take
Twining. for example – a century after they entered the top 100 brand list, they are still
there and going strong. So it makes sense for FMCG companies to encourage the loyalty of
their employees too.

FMCG companies can beat the recession:

This is an industry that has proved itself very resilient to recession – with the majority of
companies in the sector weathering the financial storm in a way that very few others have
managed. Why? Well, consumers will always need to buy the products created by FMCG
companies. They may not buy big items like refrigerators or cars in a recession, but floors
still need to be cleaned, clothes need to be laundered and aches and pains still need to be
soothed.
The FMCG industry thinks bigger – and better:
This is an industry that offers things on a whole new scale. Where else could you find
yourself handling $150 million accounts? Working in FMCG gives you the chance to be a
part of some global success stories and influence the way consumers shop for products.
 FMCG firms are always thinking of the next great discovery or innovation – always
developing and ever-changing to meet consumer's needs.

FMCG has a history of delivering what consumers want:

Some FMCG companies' roots are over two centuries old – driving the industry to a value of
$570.1 billion. In short, to quote Sam Walton, founder of Wal-Mart:"High expectations are
the key to everything"

STRUCTURAL ANALYSIS OF FMCG:

 Products often cater to 3 distinct but usually wanted for aspects like necessity, comfort,
luxury. They meet the demands of the entire cross section of population. Price and income
elasticity of demand varies across products and consumers.
 Individual items are of small value (small SKU's) although all FMCG products put together
account for a significant part of the consumer's budget.
 The consumer spends little time on the purchase decision. He seldom ever looks at the
technical specifications. Brand loyal ties or recommendations of reliable retailer/ dealer
drive purchase decisions.
 Limited inventory of these products (many of which are perishable) are kept by consumer
and prefers to purchase them frequently, as and when required.
 Brand switching is often induced by heavy advertisement, recommendation of the retailer or
word of mouth.
 MARKET SIZE:

Market Size of FMCG Sector in Billions US $.

80 74.62

70

60

50

40
33.4
30

20 18
14.6
11.6
10

0
2003 2006 2007 2015 2020

INDIAN FMCG MARKET:

The Indian FMCG sector is the fourth largest in the economy and has a market size of
US$ 13.1 billion.

Well-established distribution networks, as well as intense competition between the

organised and unorganised segments are the characteristics of this sector.

FMCG in India has a strong and competitive MNC presence across the entire value chain. It
has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $
billion 11.6 in 2003.

The middle class and the rural segments of the Indian population are the most promising
market for FMCG, and give brand makers the opportunity to convert them to branded
products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in
India, have low per capita consumption as well as low penetration level, but the potential for
growth is huge.
Indian FMCG industry is expected to grow at a base rate of at least 12% annually to become
a Rs 4,000 billion industry in 2020.

According to a new report by Booz & Company. The Report titled “FMCG Roadmap to
2020 - The Game Changers” was released at the CII FMCG Forum 2010 in New Delhi
Thursday.
The Report noted that the positive growth drivers mainly pertain to the robust GDP growth,
opening up and increased income in the rural areas of the country, increased urbanization
and evolving consumer lifestyle and buying behaviour.
The report further revealed that if some of the positive factors – driven mainly by improved
and supportive government policy to remove supply constraints – play out favourably, the
industry could even see a 17% growth over the next decade, leading to an overall industry
size of Rs 6,200 Billion by 2020.
The last decade has already seen the sector grow at 12% annually as result of which the
sector has tripled in size.
 COMPANY PROFILE

BHARAT Agro mart & BK Construction Company is a group of BK Agro mart

Pvt. Ltd.

Which was established in year 2003, they manufacture some truly peerless edible oil, tea & other
FMCG products. Their refined oil and tea are highly regarded in the market. They are among the
most successful FMCG products manufacturers, established in India.

ABOUT COMPANY:

The main object of the company is to supply quality products and services to their esteemed
customers and these they have achieved by maintaining their quality process. All their products are
analyzed deftly before their packing in their fully equipped laboratory. At this company, employees
are treated like their own partners. This enables them to manage a pretty good communication with
their clients. At their company they personally take care of all the activities like production and
distribution in their quality control set UP.
They take pride in genuine and authentic production of Tea & Refined which is extract from best
quality seed of plants. The leaves are taken from the most famous garden in Darjeeling, Assam and
Nilgiri is available in convenient attractive packaging.
Since Their establishment they have a dedicated team of professionals who work with sincerity to
maintain the quality of every product, Company established itself as one of the renowned name in
the market of FMCG products. This Company is increasing with a hope to achieve the best position
in the market.
 VISION OF THE COMPANY:

B.K. Agromart Pvt. Ltd. products touch the lives of over 1 billion people every day – whether
that's through feeling great because they've got brilliant smile, keeping their health fresh an
clean, or by enjoying a great cup of tea, satisfying , healthy detergent.

A CLEAR DIRECTION:
The four pillars of our vision set out the long term direction for the company – where we
want to go and how we are going to get there . . .

• We work to create a better future every day.

• We help people feel good, look good and get more out of life with brands and services that
are good for them and good for others.

• We will inspire people to take small everyday actions that can add up to a big difference
for the world.

• We will develop new ways of doing business with the aim of doubling the size of our
company while reducing our environmental impact.

We've always believed in the power of our brands to improve the quality of people’s lives
and in doing the right thing. As our business grows, so do our responsibilities. We recognise
that global challenges such as climate change concern us all. Considering the wider impact
of our actions is embedded in our values and is a fundamental part.
BOARD OF DIRECTORS:

DIRECTOR : Mrs. Kalavati Chaudhari.

CEO : Mr. Kishor Kumar.

Marketing Head (UP.) : Mr. Bhanu Pratap

Operation Manager (UP.) : Mr. Dharampal

H.R. Manager (UP.) : Mr. Dharampal

Sales Area Manager (UP.) : Mr. Raj Kumar

Purchase Department Head(UP.) : Mr. Kishor Kumar

 SWOT ANALYSIS:

SWOT Analysis Is A Structured Planning Method Used To Evaluate...

The Strengths, Weaknesses, Opportunities, and Threats involved in a project or in

a business venture. A SWOT analysis can be carried out for a product, place or person.

It involves specifying the objective of the business venture or project and identifying the internal

and external factors that are favorable and unfavorable to achieve that objective.
SWOT ANALYSIS:
Strengths:
Characteristics of the business, or project team that give it an advantage over other.
Low operational costs.
Presence of established distribution networks in both urban and rural areas.
Presence of well-known brands in FMCG sector.

Weaknesses:
Weaknesses: are characteristics that place the team at a disadvantage relative to others.
Lower scope of investing in technology and achieving economies of scale, especially in
small sectors.
Low exports levels.
"Me-too” products, which illegally mimic the labels of the established brands. These
products narrow the scope of FMCG products in rural and semi-urban market.

Opportunities:
Opportunities: external chances to improve performance in the environment.
Untapped rural market.
Rising income levels, i.e. increase in purchasing power of consumer.
Large domestic market- a population of over one billion..
Export potential.
High consumer goods spending.

Threats:

Threats: external elements in the environment that could cause trouble for the business or
project.
Removal of import restrictions resulting in replacing of domestic brands.
Slowdown in rural demand.
Tax and regulatory structure.

PROJECT TOPIC:
“Growth of B.K. Agro Mart From 2017 To 2018 In Terms Of Financial &
Market Position.”

It’s about to analysis the financial position of the company in last three years from
April 2009 to March 2012 in terms of...
 Gross Profit
Working Capital
Current Assets & Liabilities
Debtors Turnover
And Inventory Turnover

And in Marketing terms...

Price
Quality & Taste
Availability
Packaging
Scheme & Offers etc.

SURVEY:
During the summer training, I survey in the lucknow market...
The purpose was to know the market position and consumer behaviour regarding the
Product (Bandhan Tea & Bandhan plus Detergent).
The survey was done among the more than 110 Distributors & Retailers of Bandhan Tea &
Detergents.
The Survey was done into the lucknow market, and I cover following market...

 Daliganj;
 Anna Market;
 Takrohi Market;
 Shakti Nagar;
 S. G. Puram;
 Meena Market;
 Nishatganj;
 Akbari Gate;
 Asifabaad;
 Turiyaganj;
 Dubagga;
 Rajaji Puram;
 Kalyanpur;
 Ahilyabai Nagar etc.
 OBJECTIVES OF THE STUDY
 To analysis the growth of the company in terms of financial and market position.

 To know overall Financial position of company through ratios.

 To identify problems if any and suggest solution.

 To understand Indian Tea & Detergent sector.

 On the basis of study, to summarize the findings and give suggestions for further
improvement.
 SCOPE AND LIMITATION OF STUDY
SCOPE:

 The study is confined to the markets of Lucknow district. The complexity of the urban and
rural markets makes it difficult for marketers in India to adopt a common strategy. There are
so many variables involved, and each one is casting its shadow on the marketer attempts to
understand the market.

 The study enrich the literature related to consumer buying behavior and the factors involved
in it hereby the research can be used for academic and professional courses.

 The researcher also suggest consumer behavior model and the factors/ items influencing it
regarding the purchase hence the research can be used as secondary research for the
upcoming research scholars.

 The study will help in understanding the various factors which influence the buyers’
decision making styles in shopping malls and further help in formulating various marketing
strategies to satisfy the consumer needs in the future.
 RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve the problem. It may be understood as a

science of studying how research is done scientifically. In it we study the various steps that are
generally adopted by the researcher in studying his research problem along with logic behind them.
It is necessary for the researcher to know not only the research methods/techniques but also the
methodology used. Researchers not only need to know how to develop certain indices or tests, how
to calculate mean or median or mode, how to apply particular research techniques but must also
know which of these methods or techniques are relevant and what would they mean and indicate
and why Research process consists of series of actions or steps necessary to effectively carry out the
research. Research methodology process includes a number of activities to be performed. These are
arranged in proper sequence of timing for conducting research. One activity after another is
performed to complete the research work. Research methodology includes following steps:

Types of Research:
The topic for the research study is sales promotion strategy and the nature of the topic is theoretical
and descriptive. So the conduct the research study the type of research suitable is descriptive
research only. The data are collected from sales records, dealers, customers and salesmen of the
companies performing in FMCG sector. The descriptive research has met the requirement of
research study.

Research Methods:
For collection of primary data for this research work survey and observation methods have been
used. Experimental method is not found suitable for this study because the topic is a theoretical
topic and there is no need to have experiments.

Research Design:

A research design is a type of blueprint prepared on various types of blueprints available for the
collection, measurement and analysis of data. A research design calls for developing the most
efficient plan of gathering the needed information. The design of a Research study is based on the
purpose of the study. A research design is the specification of methods and procedures for acquiring
the Information needed. It is the overall pattern or framework of the project that stipulates.

The basic type of research used to prepare this report is; Descriptive
The major purpose of descriptive research is to give a description of the state of affairs, as it exists
in the present. The main characteristic of this method is that researcher has no control over the
variables. The researcher can only report what has happened or what is happening.

What, where, When, How are the researcher and not “Why”. Descriptive Report is that subscription
which answers or addresses all these questions.

The study mainly based on the secondary data which refers to that form of Information that has
been already collected and is available. These include some internal sources within the company
and externally these sources include books and periodicals, published reports and data of BK
Agro Mart and the annual reports of the company. Interaction with the various employees of the
accounts department has also been a major source of information. The Data & Financial result of
the past three years have been taken into consideration for analysis and calculations.

Sampling:

An integral component of a research design is the sampling plan. Specifically, it

Addresses three questions

Whom to survey (The Sample Unit)

How many to Survey (The Sample Size) &

How to select them (The Sampling Procedure)

Making a census study of the whole universe will be impossible on the account of Limitations of
time. Hence sampling becomes inevitable. A sample is only a portion of the total employee
strength. According to Yule, a famous statistician, the object of sampling is to get maximum
information about the parent population with minimum effort.

Methods of Sampling:-

Probability Sampling is also known as random sampling or chance sampling. Under this sampling
design every individual in the organization has an equal chance, or probability, of being chosen as a
sample. This implies that the section of sample items is independent of the persons making the
study that is, the sampling operation is controlled objectively so that the items will be chosen
strictly at random. Non Probability Sampling is also known as deliberate sampling, purposeful and
judgmental sampling. Non-Probability Sampling is that which does not provide every individual in
the Organization with a known chance of being included in the sample.
 SOURCE OF DATA
For the study purpose both primary and secondary data are used.

Definition of primary data:

The data that is collected directly by the respondent is called primary data.
E.g. the data collected through questionnaire and schedules.

Definition of secondary data:

The data which are already available in form of reports, journals and magazines and in internet are
secondary data.
 The primary data collected from retailers and wholesalers dealing in the products of the
company.
 The secondary data collected from records of the company, retailers and dealers.
 The data of past sales also have been collected from the Balance sheet of company.
 The primary and secondary data have been collected to cover every aspect of the study.
 The primary data are related to behavior and response of retailers, wholesalers and
customers.
 The secondary data shows the final statements of the company.
 Considering merits and demerits of both sources of date, these have been used in
combination to meet the requirements of the research work.

SAMPLE SIZE:

Sampling is the process in which a representative part of a population for the purpose of
determining parameters or characteristics of the whole population is selected.

This is called a sample. It is easier to contact a smaller part of the population for data collection.
It can be done within a limited time, efforts and with minimum cost.

For selection of a sample special care should be taken that the sample is proper representative of the
whole population.

Every segment of the population should be included but the number should not be very large which
may become difficult to manage within time and cost limits.
For this research study purpose out of different sampling methods the stratified random sampling
has been selected.

The universe includes salesmen, wholesalers, retailers and customers of selected companies located
in different parts of Lucknow region.

The retailors are selected from different areas of Lucknow. City is divided into many areas
(markets) and from each area the retailers and wholesalers have been selected from the city. They
have been selected randomly. So stratified random sampling has been used for the study. Keeping
in view the proper representation of every segment of population and manageable size of the
sample,
The sample size selected is 100.
METHOD OF DATA COLLECTION:

There are two types of data collected by me for this Analysis...

 For Market Position Analysis:

 Primary Data:
I used Questionnaires for the primary data collection.
There are more than 100 Questionnaires, which I use for the Market Analysis.

 For Financial Position Analysis:

 Secondary Data:
I used Balance Sheet of The Company From April 2017 to March 2018.
Other financial information of P&L A/c From April 2017 to March 2018 of the Bharat Agro
Mart Pvt. Ltd.
 SUGGESTIONS / RECOMMENDATION:
In financial terms:

 According to its turnover and achievements company is running in it’s sound position at it’s

level.

 But it is in short run, if company wants to improve it’s level of business and make a good
brand company must have to do some new innovations.
 There is a need to manage proper supply of the product in the market.
 There is big need of advertising and promotion of the product and company.
 However company gives ad time to time in the news papers but Company should adopt
electronic advertisement like; Television and Radio.
 To improve this it must increase current assets and control the current liabilities.

 To improve the operating ratio company should try to control the operating costs.

 To improve the net profit ratio company needs to concentrate on the operating costs and try

to increase the sales.

 Company must have to control it’s average collection period.

 CONCLUSION
When I analyzed the overall performance I conclude the study i.e.-

 Firm’s liquidity position is satisfactory and meets out its obligations.

 The sale of the company fluctuated due to not utilizing its resources properly.
 Company is following a liberal credit policy.
 Customers are satisfy with the product quality & Taste.
 Customers are satisfy with it’s price.
 Customers are happy with it’s schemes.
 Retailer are happy on the response of the customers.
 Retailers & Distributers are satisfy with the schemes & offers on the product.
 But they complain about the interrupted supply of product.
 Overall company is in sound Position according to it’s level.
 There is a need to improve the level of the company.
 BIBLIOGRAPHY:
For this analysis, I consult following books and Internet links...

 Financial Management by M.Y. Khan & P.K. Jain

 Financial Management by I.M. Pandey

 Balance sheet of BK. Agro Mart From April 2009 to March 2012.

 Some other financial data from P&L A/c. of BK. Agro Mart.

 Class notes

 Internet –

 www.bharatagromart.com
 www.wikipediya.com
 www.scribd.com
 Slide share