SYNOPSIS

Cigarette distribution

Confectionary

HORECA Channel

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 SYNOPSIS
Cigarette distribution

Confectionary

HORECA Channel

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DISTRIBUTOR – DISTRIBUTOR
KOHLI BROTHERS

SUPERVISORS – 2 SUPERVISORS – 3
(across Chd.)

SALESMAN - 8 SALESMAN – 9-10

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ITC’s Display

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GPI’s DISPLAY

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 FINDINGS

• Extensive distribution network with salesman with an average

experience of 15 years in this industry. Also, they are reliable

and have good convincing power

• Though GPI has a good distribution network, but the demand in the
Chandigarh area is very low.

• The most demanded cigarette in Chandigarh area is GOLD FLAKE

• The most demanded cigarette of GPI in Chandigarh is FOUR

SQUARE but the aggregate demand of FOUR SQUARE is not even

half the GOLD FLAKEs.

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• The peak demand comes from the area surrounded by
students. i.e. Sector 11 and 15. These should be set as
priority areas.

• As the number of enrollments in PU has increased by

10%, this should be taken into consideration as the main age

group that go for some premium brands lie in this category

Also this is the stage when a person starts smoking.
So, building brand loyalty among them is critical

• The allowance by ITC to display competitors brands on its

display (though not on the top) is positive not only for the
shopkeepers but also for ITC

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 SALES VALUE in Chd.

ITC
GPI
OTHERS

As shown ITC has the highest sales in Chandigarh . Though

others category which includes bidis and some other brands
accounts for only 4% but they have extensive demand. The
reason for low value is very low prices of theirs
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 SYNOPSIS
Cigarette distribution

Confectionary

HORECA Channel

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 ABOUT

• The project of confectionary channel was carried out in the areas

which are interiors to the city

• Various mini markets, rehri markets were covered for carrying

out
this project.

• The confectionary covered toffees, Bingo and VIVEL satches

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 FINDINGS

The chart shows the

market share of
different brands of Perfetti
toffees that were found RAVALGON
PARLE
in the markets covered LOTTE
CADBURY
NESTLE & OTHERS
Perfetti has the largest ITC

share with that of 39.6%

while ITC has a share of
5.94% only

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 MARGINS
Now lets see how much margins different brands give to the
Shopkeepers

 ALPEINLEBE – 15-16%
 CADBURY ECLAIRS – 13-23% (depends on quantity)
 NESTLE ECLAIRS – 17-26%
 SOLANO – 16-18%
 DABUR HAJMOLA – 18%
 PARLE – 16-20% (on different toffees)
 CHLOROMINT – 23%
 ITC – 16-20%
 MENTOS – 18%

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As shown in the chart, Bingo
has a very marginal share in
comparison to Lays . Lays
Bingo
The exact figure is around
5.6%

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 REASONS FOR COMPITITIVE
DOMINANCE
 Very good supply

 Demand for Alpenlibe and coffee bite is immense

 Lays provides racks for storage and replaces it immediately when

not in good condition

 Mainly shopkeepers keep these in their acordance and so is their

selling done. Customers donot have special tastes except for few.

 Lays Give supply on credit which is missing as far as Bingo is

concerned though sunfeast has this option

 Availability of Covered racks by Lays, Hippo

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REASONS FOR NON AVAILABILITY
OF ITC
 Very poor supply

 Already saturated markets .. So donot demand much

 Bingo in demand but again non recovery of baskets used to

keep them makes shopkeeper non interested….

 Even some wholesalers donot have ITC confectionary…. So

how come shopkeepers have

 Even lack of awareness among a few

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 SUGGESTIONS
 Can improve the sales of toffees by starting some convinience channel which only
concentrates on these mini markets and backwards

 Can integrate the supply of BINGO and CONFECTIONARY so that it enhances

reach

 Providing good covered baskets for BINGO to shopkeepers

 Concentrating more on wholesalers

 To start with, can give some kind of premium to shopkeepers so that they atleast
replace their saturated shelves

 Should expand through the organized retail segment in stores like Aditya Birla's
MORE, Bharti's EASY DAY etc.

 Various new entrants are expanding rapidly like HIPPO which should be looked after

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