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A Report on
PROGRAMS TO ENHANCE VISIBILITY OF
LARGE CADBURY SKUs AND DRIVING
MARKETS AS PER NEW CONFIGURATIONS
Submitted By:
Rituraj Negi
Cadbury India Limited
Date of Submission – 23/05/2008
A Report on
PROGRAMS TO ENHANCE VISIBILITY OF
LARGE CADBURY SKUs AND DRIVING
MARKETS AS PER NEW CONFIGURATIONS
Submitted By:
Rituraj Negi(07BS3464)
Distribution List:
Acknowledgements
I dotingly thank Mr. Rajesh Kanwar, Senior ASM, Cadbury India for Punjab. His able
guidance has proved effective in both personal and professional life. Working with him gave a
thorough insight of the fact that the clocks of people at the top brass have 48 hours in a day
indeed. His team of efficient Sales Officers and the ancillary unconditionally extended full
support.
I would like to express my deepest gratitude and sincere thanks to my Faculty Project Guide
Prof. SPR Vittal (IBS Hyderabad), for his valuable suggestions, scholarly guidance, and
constant encouragement at every step of the project.
I would also like to thank Mr. Pawan Arora (Sales Officer, Chandigarh), whose guidance and
constructive criticism, has been a welcoming help that saw me through the completion of my
project.
Last but not the least, I express my profound gratitude to the team of CIL, Chandigarh for
providing a congenial and competitive work environment, which was a catalyst for a great
learning experience.
Table of Contents
1. Abstract…..……………………………………………………………… 9
2. Introduction ……………………………………………………………... 12
6.3 How the big lines have moved in Purple Star Outlets…………..… 52
6.4 Effect of per sq. ft. increase in shelf space on sales……..……. …... 53
8. Whole Sellers……………………………………………………………. 60
10. Comparisons………………………………………………………...…. 66
10.1 AD Penetration………………………………………………....... 66
19. Appendix E – Increase in shelf space in Purple Star Outlets ………. 111
21.References………………………………………………………………. 115
List of Tables
1. Sales data for April „07(Purple Star Outlets) …………………………. 46
List of Figures
1. All Drinks Sales - Comparison Chart(Purple Star Outlets) ……………... 48
2. Base Chocolates Sales – Comparison Chart(Purple Star Outlets) ……..... 49
3. Bytes Sales – Comparison Chart(Purple Star Outlets) ………………...… 50
4. Big Lines Sales in Purple Star Outlets …………………………………….. 52
5. All Drinks Sales – Comparison Chart(Overall) …………………………... 57
6. Base Chocolates Sales – Comparison Chart(Overall) ……………………. 57
7. Bytes Sales – Comparison Chart(Overall) ………………………………… 58
8. All Drinks Sales – Comparison Chart(Wholesale) ………………...……... 61
9. Base Chocolate Sales – Comparison Chart(Wholesale) ……………...…... 62
10.Bytes Sales – Comparison Chart(Wholesale) ……………………………... 62
11.Breakup of outlets(RE wise) …………………………………...…………... 63
12.RE wise penetration ………………………………………………………… 64
13.RE wise LBPC ………………………………………………………………. 65
14.All Drinks Penetration – Comparison Chart ……………………………... 66
15.CDM Group Penetration – Comparison Chart ...………………………… 68
16.CDM Rs. 5/- Penetration – Comparison Chart …………………………... 69
17.Five Star Rs. 5/- Penetration – Comparison Chart ………………………. 70
18.Ulta Perk Penetration – Comparison Chart ……………………………… 71
19.Total Outlet Penetration – Comparison Chart …………………………… 72
20.LBPC – Comparison Chart(Last three months) ………………………….. 73
21.LBPC – Comparison Chart(Apr ‟07 v/s Apr „08) ……………………….... 74
22.Damages – Comparison Chart ……………………………………………... 75
23.MSS Compliance – Comparison Chart ……………………………………. 77
Abstract
The project deals with enhancing the visibility of large Cadbury SKUs and driving the markets
as per new configurations. The project aims to ensure that the Cadbury SKUs are sold to
maximum number of outlets and after they reach the outlets they are placed with proper
visibility.
Currently, Cadbury is running three Visibility programs, namely “Purple King”, “Purple Prince”
and “Bournvita ke Baadshah”. The first two programs are meant for Cadbury Chocolates, Bytes
and Gift Packs, whereas the third program is for Bournvita. It was my responsibility to see that
these programs were properly implemented in as many outlets as possible. The implementation
of these programs was done in four phases:
Phase I – In the first phase, we studied the market and identified the outlets which can be
enrolled in these visibility programs. The outlets were chosen on the basis of the sales that they
have done of Cadbury products in the past.
Phase II – Then we visited these outlets and negotiated for the required Shelf space. After this,
the outlets which agreed to give us the desired shelf space were enrolled for the visibility
programs. In all, 59 outlets were enrolled in “Purple King Program”, 8 outlets were enrolled in
“Purple Prince Program” and 58 outlets were enrolled in “Bournvita ka Baadshah” program.
Phase III – After enrolment came the phase of merchandising, in which our merchandisers
placed Cadbury products in the agreed shelves in different outlets, and marked those shelves by
putting posters and stickers of Cadbury there.
Phase IV – After the merchandising had been done, we had to regularly check whether the space
allocated to Cadbury is stacked with Cadbury products only.
We have been keeping a regular check on these outlets, and if they follow the norms of the
visibility programs properly they will be awarded with payouts (on a quarterly basis).
In all, 58 outlets were enrolled in Cadbury‟s Purple King program, 8 outlets in Cadbury‟s Purple
prince program and 58 outlets in Bournvita ke Baadshah
After implementation of these visibility programs, we measured the effect of visibility programs
in big Purple Star Outlets. There performance was monitored using WinOmkar (a customized
Cadbury software), and the growth was checked to measure the effectiveness of Visibility
programs.
In Purple Star outlets the visibility programs proved to be very effective. Sale of Chocolates went
up by 38%, and the sale of All Drinks category went up by 18%.
Then, I was also supposed to look after the brand wise penetration of Cadbury products. I am
happy to say that the penetration of almost all the brands has went up (in comparison to the
figures of the same time frame of the last year). This was mainly because we were working on
increasing the LBPC (Line booked Per Call), which is the average number of lines sold in all the
outlets. We have worked hard to improve the LBPC and currently it stands at 8.2, way ahead of
the LBPC of 7.5 in February and 7.01 of April last year.
Thus, as we were trying to improve LBPC, penetration of some “problem brands” also moved
up, for example penetration of Ulta Perk reached 52.5% in April (moving up from a penetration
of 34% in February)
Also, the total outlet penetration had to be taken care of. We took this thing seriously and it
resulted in the decrease in the total number of No Order Parties. In April ‟08 there were only 120
No Order Parties, compared to last April‟s 252. Currently, the outlet penetration is at 82%.
I regularly accompanied the RDSMs (sales men) on their beats and study the market closely to
understand the scenario of the market and to investigate the factors which may affect the
penetration and visibility of Cadbury products. In all, I visited 600 odd outlets, big and small.
These visits have given me a better understanding of the Retail Environment and have resulted in
the methods that we have used for improvement in the penetration and LBPC.
We also worked on reducing the “damages”. Currently the damages stand at .89% of the total
sales made by Cadbury. We did an analysis of the “Damages” and found that the main culprits
are “Bytes” and “Celebration RDFC packs”.
I have also started to understand that how the SKUs move in different types of outlets like High
End Grocers, Food stores, Chemists etc. This classification of outlets has been done by the
Cadbury on the basis of their Shop space and sales. Since, we cannot work with the same
strategies on all types of outlets; therefore we need to design different game plans for different
outlets.
Also, in my visits to outlets I checked whether the outlets have been classified correctly or they
need to be re-classified. For example an outlet classified as HEG may not really be an HEG as it
does not fulfill the space and sale criteria. Though, I did not find any such discrepancy and all the
outlets that I have visited have been correctly classified.
MSS compliance was one more thing which I had to improve. MSS stands for Must Sell SKUs.
Must Sell SKUs have been defined by the company for different REs. Currently the MSS
compliance is at 51%. The MSS compliance is targeted at 70%, so we need to work hard in this
department.
We also conducted a survey to understand why 500 gm refill packs are not doing well in the
market. On the basis of the results of this survey we pointed out measures which can be taken to
improve the sales of BV 500 gm refill pack.
In the end, I also made an incentive plan for the RDSMs on the lines of Tambola.
The outlets which have been enrolled under the visibility programs will be checked regularly by
Cadbury representatives till the end of this year.
INTRODUCTION
Objective of the Project
I. Objective of the Project: The main aim of the project is to enhance the visibility of
Cadbury Chocolates, Bournvita and Bytes to push the sales and fight the upcoming
competition from various domestic as well as international players. Cadbury is the
best selling chocolate brand in India and these programs have been designed to ensure
that Cadbury stays at the top. The many tasks that we have to perform during the
course of the project have been designed to accomplish various small sub-objectives
which will contribute to the main objective of the project. The various sub-objectives
are as follows –
- This project also aims at exploring and understanding the various issues
relating to the sales of Cadbury products in the Summer Season. Seasonality
is one big factor which affects the sales of Chocolates and Malted Food Drinks.
Sales go up in the Winters/Festive Season and take a sharp nosedive during
summers. With the help of the visibility programs we tried to reduce the effect of
seasonality in sales.
- One major objective of the project was to improve the Line Booked per Call
(or LBPC). LBPC stands for the average number of lines that a salesman sells at
an outlet. LBPC was targeted at 13.
- We also tried to understand that why some brands are not doing well in the
market. We checked whether visibility can help those products in any way or
there are some other measures that we have to take for those products .It will
make us better prepared for the similar problems that may arise in the future.
- The project also aimed at reducing the total damages. Damages reduce the
total profits to a large extent. Damages can take place anywhere, be it the Depot,
Distributor‟s Godown, Outlet or while transporting. The target was to keep the
damages below 0.4%.
- The project also aimed at increasing the penetration of various lines, for
example Rs. 5/- lines, Ulta Perk etc.
- Overall Outlet penetration is one thing that we had to improve during the
course of the project. Overall Outlet Penetration was targeted at 90%.
- Also the MSS compliance had to be taken up to 70%. MSS stands for Must
Sell SKU. Number of Must Sell SKUs for different REs has been decided by the
company.
- As for me, all the above-mentioned things will give me a better understanding of
the distribution network of Cadbury and how the Primary/Secondary sales are
handled.
While, working on this project we also tried to figure out the best way to put maximum number
of Cadbury products in maximum number of outlets.
Now, Cadbury has a large product portfolio, and it wants to focus on each of its product. This
project makes an effort to track down the movement of various brands and categories in the
market. It would help the company to decide better strategies for its brands.
One thing which always troubles a company is the losses that it suffers due to damages. This
project tries to investigate reasons for high damages and the ways to tackle them.
All in all, these things will help the company in gaining a better understanding of the market and
to maximize sales and profit.
Methodology
For the visibility programs I visited the shops personally and checked if they can provide us with
the desired space. We also had to interview the retailers for getting a better understanding of
their perception of the brands. For the three different programs, we had different lists of shops
which can be enrolled in those programs. These lists were prepared on the basis of the earlier
sales and the existing space in those shops. First, we tried to enroll these shops in the visibility
programs and then we moved on to other counters. Then Sample surveys were conducted to
understand the sales patterns and also to understand the standing of the competitors in the
market.
Use of Questionnaires was also taken to conduct surveys on Bournvita and its competitors.
For, measuring the affectivity of per sq ft increase in shelf space on sales, we calculated the
increase in shelf space by observation and by interviewing the retailers to know the shelf space
that was there during last April.
For comparing the incline or decline in penetration or LBPC, we needed accurate sales figures.
We used three softwares namely MeraNet, WinOmkar and Rd.Com for this purpose. All the
required data was obtained from these softwares.
WinOmkar is a customized software package being used by Cadbury. At the distributor level all
the billing is done in WinOmkar. WinOmkar generates all the reports such as reports on LBPC,
No-order parties, penetration etc on the basis of billing. WinOmkar replaced Rd.Com in 2006.
Rd.Com was a similar software which comes in handy when we have to extract any old data for
comparison purpose.
MeraNet is an online database of Cadbury in which the data is fed by WinOmkar. It can be
accessed from anywhere in the world to retrieve reports of the sales of Cadbury products. It is
available at www.cilsales.net. One needs an authentic username and a password to access the
reports on MeraNet.
I also took reference from some of the previous projects done by my seniors in Cadbury. I got all
the figures and recommendations cross checked from Mr. Pawan Arora(Sales Officer, CIL -
Chandigarh).
Industry trend:
The confectionery industry in India is approximately divided into:
Chocolates
Hard-boiled candies
Éclairs & toffees
Chewing gums
Lollipops
Bubble gum
Mints and lozenges
The total confectionery market is valued at Rupees 41 billion with a volume turnover of about
223500 tonnes per annum. The category is largely consumed in urban areas with a 73% skew to
urban markets and a 27% to rural markets.
Hard boiled candy accounts for 18%, Eclairs and Toffees accounts for 18%, Gums and Mints
and lozenges are at par and account for 13%. Digestive Candies and Lollipops account for 2.0%
share respectively.
Overall industry growth is estimated at 23% in the chocolates segment and sugar confectionery
segment has declined by 19%.
Cadbury with Dairy Milk, Perk, Gems, 5 Star, Celebrations, Bytes, Dairy Milk Eclairs and Halls
brands is a key player in the chocolate, eclairs and mints segments.
Milk Beverages: The Milk Beverages industry is valued at Rupees 16.1 billion with an annual
turnover of approx 63,000 tonnes. As per Nielsen estimates the industry is growing at 10.1%.
Cadbury is a key player in the segment with Cadbury Bournvita and Cadbury Bournvita 5 Star
Magic
India‟s branded Chocolate industry is now worth 2,200-crore. Cadbury India leads the pack with
a market share of 70%. The Indian chocolate industry has witnessed many innovative sales
promotion activities in the recent past.
Companies are trying to increase market share in stagnant to declining (volume terms) market in
order to retain consumers, to encourage switching, to induce trials and liquidate excessive
inventories. With the presence of so many brands the competition had increased severally
leading to fight for market share and shelf space. Inflationary trend has made both the consumer
as well as trade deal prone.
India‟s shopper is predominantly the one who prefers to walk down to the nearest mom-and-pop
shop for buying his/her convenience products in spite of the extensive organized development of
modern retail. Therefore, the penetration and proper visibility in the maximum number of outlets,
both big and small, are the main focus areas that companies need to work upon. For most of our
history, retailers have been a source of major potential that needs to be exploited with the
growing trends of new retail formats. With the proliferation of new brands in newer product
categories, coupled with growing competition in the market, especially FMCGs are looking to
traditional retail outlets to be a source of volumes and growth.
However, getting an insight of retailer‟s mind still remains an unexplored area, a study of which
will reinforce the company managers to further enrich their trade promotion schemes. Framing a
trade promotion scheme for any product for retailers requires an understanding of retailer
perceptions. They need to be made aware of the profits that they may generate if they follow the
trade promotion scheme properly.
The idea behind this project is to gain an understanding of the effect that Visibility can have in
the traditional retail outlets. To measure the effect of maximum visibility combined with
maximum penetration – both brand wise and Outlet wise, is the main purpose of this project.
There used to be a time when companies were happy if overall profits grew on regular basis.
This is an era of tough competition, and a good company needs to study the brand wise breakup
of the revenues that it is generating.
Companies want to build stronger brands, and for this, first the retailers need to be convinced to
keep the brands in their shelves.
The method used to achieve the above aim is to gain an understanding of the traditional retailers
on various counts and to see what influences the formation of their brand images of different
brands, because brand image is an important determinant of the purchase decision.
According to a report from FICCI, the chocolate industry is expected to register a growth of 10%
every year and also we have witnessed a rapid growth in volumes in the chocolate industry. The
profitability of Cadbury over the last few years has been increasing due to increase in the product
demand and consumption. However there will reach a stage in future where the prices may not
rise beyond a certain stage and there will be a need to increase volumes. To combat this situation
Cadbury has to focus on increasing the nature of trade promotion scheme for chocolates.
Widespread usage of sales promotion activities in Fast Moving Consumer Goods (FMCG) sector
makes it imperative that manufacturers take into account channel member and consumer
perceptions before planning such programs.
A couple of years ago, Cadbury India started the Purple Star program for traditional retailers,
where it tailors promotions and schemes for selected stores.
Under the Purple Star program, Cadbury is helping outlets improve storage conditions by
providing special hardware such as visi-coolers and dispensers.
This hardware also helps in increasing the vending space and provides much required direct
consumer interaction. The Purple Star program currently accounts for around 8% of the total
outlets. While the focus is on high throughput outlets, company is focusing on absorbing more
outlets under the program to improve its effectiveness.
The design following this project is to explore Cadbury‟s Current retail promotion practices for
the purpose of evaluating its effectiveness in the premium outlets for all the categories at
Chandigarh. The Project also attempts to study the impact of current retail promotion practices of
Cadbury on the retailer, his business growth in terms of sales volume, his inclination towards
competitor activities etc. and thereby identify related prospects and problems.
Cadbury India is a food product company with interests in Chocolate Confectionery, Milk Food
Drinks, Snacks, and Candy. Cadbury is the market leader in Chocolate Confectionery business
with a market share of over 70%. Some of the key brands of Cadbury are Cadbury Dairy Milk, 5
Star, Perk, Eclairs, Celebrations, Temptations, and Gems. In Milk Food drinks segment,
Cadbury's main product - Bournvita is the leading Malted Food Drink in the country.
Cadbury is the world's largest confectionery company and its origins can be traced back to 1783
when Jacob Schweppe perfected his process for manufacturing carbonated mineral water in
Geneva, Switzerland. In 1824, John Cadbury opened in Birmingham selling cocoa and chocolate.
Cadbury and Schweppe merged in 1969 to form Cadbury Schweppes plc. Milk chocolate for
eating was first made by Cadbury in 1897 by adding milk powder paste to the dark chocolate
recipe of cocoa mass, cocoa butter and sugar. In 1905, Cadbury's top selling brand, Cadbury
Dairy Milk, was launched. By 1913 Dairy Milk had become Cadbury's best selling line and in
the mid twenties Cadbury's Dairy Milk gained its status as the brand leader. Cadbury India began
its operations in 1948 by importing chocolates and then re-packing them before distribution in
the Indian market. Today, Cadbury has five company-owned manufacturing facilities at Thane,
Induri (Pune) and Malanpur (Gwalior), Bangalore and Baddi (Himachal Pradesh) and 4 sales
offices (New Delhi, Mumbai, Kolkata and Chennai). Its corporate office is in Mumbai.
Worldwide, Cadbury employs 60,000 people in over 200 countries.
Cadbury India has been ranked 5th in the FMCG sector, in a survey on India's most
respected companies by sector conducted by Business World magazine in 2007.
SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,
Opportunities, and Threats involved in a project or in any other situation requiring a decision.
Strengths and weaknesses are internal factors and opportunities and threats are external factors.
Strength:
• Brand Name: Cadbury has earned a reputation in the market for extending quality
products to the market vis-à-vis its competitors. It has maintained a strong Brand name in
confectionery market globally as company as in India.
• Market Share: Cadbury India has the largest market share of 70% in the confectionery
market across the country.
• Distribution Network: Huge distribution network across the country with strong visual
presence across all possible channels such as stores, Railway stations, Malls, Gifting mix,
etc. Visibility is created everywhere to promote Cadbury products near schools and other
places. Events such as Diwali and Valentine Day are capitalized very smartly by CIL.
• Aggressive Marketing through media channel as company as Promotional route i.e. has
Amitabh as a brand ambassador for Cadbury Dairy milk and provides plethora of
schemes for all channel partner as company as for end consumers.
• It is a global chocolate brand built upon a reputation for fine products and services.
• Cadbury Schweppes plc was rated as one of the Fortune Top 100 Companies to Work For
in 2006. The company is a respected employer that values its workforce.
• The organization has strong ethical values and an ethical mission statement
• Its Chocolate and MFD brands are well established in the Indian Markets. Cadbury‟s
Dairy Milk is the foremost name in the Indian Chocolate Market. 5 star is another very
Weaknesses:
• Cadbury‟s one main strength can be its biggest weakness. Cadbury has done a rapid line
extension in the recent years. Now it is selling well over 60 different lines. Competitors
can take advantage of this by identifying vulnerable spots in this huge portfolio.
• Little Penetration in the rural sector.
Opportunities:
Threats
Brach sales manager (look after specific territories in the north region)
In this project, I was required to communicate regularly with the Area Sales Manager, the Sales
Officer and the RDSMs.
FACTORY/PRODUCTION UNIT
DEPOT
C & F AGENTS
RE-DISTRIBUTORS
RETAILERS WHOLESALER
F
S
MODERN
TRADE
CONSUMERS
My Project in Cadbury Schweppes was primarily targeted at enhancing the visibility of Large
Cadbury SKUs. So, for enhancing the visibility the company has introduced three programs
across different REs (Retail Environment). Out of these three, two programs (namely Purple
King and Purple Star) are for Cadbury's chocolates, and one program (Bournvita Ka Baadshah)
is for Bournvita.
Retail Environment:
These programs were professionally implemented across REs for maximum returns. In
Chandigarh, which is a Gold Town(Towns are classified as Titanium, Gold etc on the basis of
Market Potential and Market Potential Value Index) shops have been further classified on the
basis of the area, number of Salesmen, sales etc. A detailed study of the RE provides for the
understanding of the RE reclassification.
I will discuss the programs that Cadbury has planned for these REs in brief, but first I will
answer the question that why do we need Visibility programs for Cadbury, which already is the
Number One Chocolate Company in the country? Now if we consider the markets in Chandigarh
then we will see that here the markets are very organized, with a large number of big shops
flaunting expensive imported brands. The competition is especially tough in the field of FMCG
products. Higher Per Capita Income enables a large section of people to buy the desired
products, in spite of the cost. Retailers also earn a higher margin on imported products, esp.
chocolates, so they are willing to fill their shelves with those chocolates, and not to forget the
competition from other domestic brands.
Now, there is one “thumb rule” in case of chocolates and that is “jo dikhta hai, wo bikta hai” i.e.
only that chocolate will sell which would be visible to the customer. The reason is simple –
chocolate sells primarily due to one factor which we call “Impulsive Buying”. In most of the
cases, customers never really plan their purchasing decision of chocolates, it‟s only after they see
chocolates in counters that they feel like buying them. So, that‟s why visibility is one of the most
important factors which drive the sale of chocolates.
So, as I mentioned before we implemented three programs for enhancing the visibility of
Cadbury products. The shopkeepers will get monetary benefits if they are able to carry these
programs properly. They are -
1. Cadbury‟s Purple King - A retailer or a food mart can become a "Purple King" if he keeps
Cadbury's Chocolates in a Visi-cooler or in at least 3 sq. ft of Pure Horizontal space (Pure Space
means Only and Only Cadbury Chocolates should be kept in that space). Similarly, Cadbury
should also be visible in 3 sq. ft of Pure Vertical Space. Plus, the shop should have at least 5
hanging strips (60 packs) of Bytes or a Pure Bytes Rack.
The payouts would be made in the name of the retailers through checques on a quarterly ba sis.
2. Cadbury‟s Purple Prince – This is the second visibility program for chocolates and Bytes.
For this a shop should have a visi-cooler or at least 3 sq. ft of pure horizontal space for Cadbury.
3. Cadbury‟s Bournvita ka Baadshah – This visibility program focuses on Bournvita. For this
the visibility requirements are -
- Min. 4 sq. feet - Shelf /Window – adjacent to MFD (Malted Food Drinks) category stocking
- Min. 12 facings for Bournvita (min. 3 for Bournvita Five Star Magic)
Plus the shop should sell at least Rs. 3000 worth of Bournvita every month.
It is worth mentioning here that this program is of particular interest because Bournvita is one
product which is affected the most by the seasonality factor.
All the shops who wished to enroll in any of these programs were required to fill up a form
provided by the company. There are different forms for the three programs.
The visibility of SKU (Stock Keeping Units) will be checked regularly by a team of Cadbury
representatives, and if any enrolled shop fails to put up the required visibility then the payout
would not be given to the shop.
In all, we enrolled 59 outlets in Cadbury‟s Purple King Program, 8 outlets in Cadbury‟s Purple
Prince Program and 58 outlets in Cadbury‟s Bournvita ka Baadshah Program.
We gave special attention to the “Purple Star” Outlets while tracking down the effects of these
visibility programs. Purple Stars are the top end retailers of Cadbury i.e. they give big business to
Cadbury. They are given some privileges after they fulfill some pre-requisites.
I have a team of 4 RDSMs working under me. I went to retailers with one of them each day (on
their specified Beats), and we negotiated with them regarding the desired space and location.
Asking for desired shelf space turned out to be a problem sometimes, because other big brands
had already booked their shelves in most of the shops and food marts, but the fact that Cadbury
is the Market Leader in Chocolate as well as Malted Food Drinks Category worked in our favor,
and we were able to convince the retailers.
Now, if we talk about enhancing visibility then it could not have been done without working on
the LBPC (Line Booked Per Call) i.e. the number of lines that RDSMs sell to shopkeepers. Now,
Cadbury has about 60 different products (Lines) in its Portfolio. The target given to me was to
take the LPBC up to 13, i.e. each RDSM was sell (on an average) 13 different lines in each shop.
Good LBPC helps us in displaying more products from Cadbury Portfolio in shelves, which will
work in favor of the sales of those products. When I started working on this project the average
LBPC was 7.5. So we had to work really hard to push it up to the desired level. What we had
planned to do was to “mix” the same price ranged categories while booking orders. Instructions
were made clear to the RDSMs. If a shopkeeper asked for, say, two boxes of “GEMS” then the
RDSM has to convince him to take one box of “GEMS Fruity” along with two boxes of regular
GEMS. Similarly, the same strategy was followed for “PERK” and “ULTA Perk” and so on.
These measures were instrumental in taking the LBPC up. We had to take proper care in mixing
the products as the main product could have faced any cannibalization from the product which
we were trying to push.
Apart from playing with the strategy of “Mix n‟ Match”, we took care of many other things, for
keeping the LBPC on track. They were:-
We used the same measures to increase the penetration of some products like “ULTA Perk” -
targeted penetration at 80%,”CDM (Rs. 5/-) “and “5 Star (Rs. 5/-) – targeted penetration at
85%“.
Penetration of Bytes:-
One more product on whose penetration we really had to work hard was “BYTES”. Cadbury‟s
“Purple King” Visibility program too focuses on “BYTES” because to become a Purple Prince, a
retailer must keep at least 5 Strips of “BYTES” (12 packs in each strip). The basic rationale
behind sales of “BYTES” is that a retailer, who sells Chocolates, can sell “BYTES” too. It‟s just
that the visibility of “BYTES” should be proper and it should not be kept with other Salty Snacks
which can (and will) hinder its sales.
Outlet Penetration:-
Now, we cannot talk about visibility without covering maximum number of Outlets. Therefore,
the Outlet penetration was targeted at 90%. The motive was simple; customer should find
Cadbury products wherever he or she goes. We planned to achieve this by covering 100% of the
High End Grocers (HEGs) and Supermarkets, and at least 80% of the Chemists and Food Stores.
The biggest factor was the penetration in Low End Grocers (LEGs), where we targeted at 75%
penetration. We knew that if we can do this then achieving the overall target should not be a very
big problem.
No Order Parties:-
For the purpose of maximum outlet coverage, we had to eliminate a large number of “No Order
Parties”. “No Order Parties” are those outlets which have not placed any order within a span of
last one month. Cadbury keeps a track of these outlets and we constantly keep trying to convert
as many No Order Parties as we can. In the month of March we converted 259 No Order Parties.
The possible reasons for Outlets not ordering Cadbury products from the Distributor can be:-
The company sales personnel / distributor sales man does not visit on a regular basis
The distributor is not supplying goods as retailer has not paid the early balance
(Outstanding) from a long time
The retailer does not know who the distributor is
The retailer is selling competitors products (Nestle/Perffetti)
The retailer brings goods from whole sale
Goods off take not taking place i.e. goods are stuck in the store and movement not taking
place or competitor products selling more
Scheme not coming from the company or no margin or no discount given
Have had a bad experience relating to damages/expiry/salesman behavior etc.
Any other outstanding issues from the company or the distributor i.e. early scheme not
given.
RdSM visiting when the shop is closed or the concerned person is not available.
RdSM not knowing were the outlets are
The name of the shop is entered as two names, the bill is cut on another bill and the shop
is named as some other name
Non availability of goods
A lot of medical shops only order BV (jars). If those are unavailable then it is entered as
No Order Party
Some shops might be permanently closed but the names have not been removed.
The RdSM also does not persuade the retailers to keep some other products.
Damages:-
One more thing which we took care of was “Damages”. Damages can take place due to:-
a) Logistics problem –From depot to the Re-distributor and from there to the retailer
b) Storage facility not according to the norms of the company
c) Expiry/or damage caused at the retailer
The sales officers and redistributors salesmen during their regular visit to the outlets
should check and continue to educate the retailers on storage norms.
Not only should the sales personnel be checking and educating but they should also stack
the products at a cooler place, in case it is placed somewhere else.
The damages/expiry should be collected on a periodic basis and the retailer‟s should
know as to when the company asks for damages or expiry to be collected.
The time period for collection should be either of 3 months or less and not more than that,
as the retailers will become jittery about keeping a product if it is not collected on timely
basis.
A proper format should be maintained wherein the retailer who is giving the
damage/expiry, which product, quantity, amount, and date should be mentioned. This
would help in knowing as to wherein most of the damage/expiry is coming from.
It should also be known as to which product should not be forced/or given in bulk to a
particular retailer, this leads to a lot of goods coming back as expiry.
“Damages” in the month of April had been very high. A major portion of these “damages” came
from the “Celebrations packs (RDFC Range)” which have been returned by the retailers. These
Celebrations packs were purchased by the retailers during the Festive season in 2007.
MSS Compliance:
The MSS Compliance was targeted at 70%. MSS stands for Must Sell SKU. Must Sell SKUs are
pre defined for different REs. We tried to push the penetration of MSS in the outlets according to
the norms defined by the company. RDSMs were also instructed to take special care of the MSS
compliance while booking orders.
Distributor:
My office was in the centre of the city, at “Jagat Singh & Sons Agencies”, the biggest distributor
of Cadbury in Chandigarh. It contributes to about 70% of the total sales that is made by Cadbury
(Base Market) in Chandigarh. It has been Cadbury‟s distributor since 1966 and has been
instrumental in the proper functionality of Cadbury‟s Distribution Channel. Cadbury is not the
only company for which “Jagat Singh & Sons Agencies” are the distributors. This agency is also
the distributor for Wockhardt, Azinomoto, and Lindt etc. There are 4 RDSMs for Cadbury who
are briefed regularly by Mr. Pawan Arora, Sales Officer-Cadbury (Chandigarh). The other
distributor is “KK and Company”, which contributes to about 30% of Cadbury‟s total business in
Chandigarh. “Jagat Singh and Sons Agencies” supplies Cadbury products in 39 sectors (sector 1
to 39) and the remaining sectors are covered by “KK and Company”. I have given a map of
Chandigarh in Appendix A marking the area covered by both the distributors. I have also given
the beat routes of RDSMs in Appendix B.
Cadbury Depot:
The storage section of depot is divided in 3 sections. These three sections are Air Conditioned
section (for chocolates), Semi Air Conditioned (for “Celebrations” Gift packs) and the Non Air
Conditioned Section (for Bournvita, Halls, Gems etc). At any time, stock which would last for 3
weeks is always stored in depot. Stock is supplied to the distributors located in various cities,
from where it is further distributed to retailers and Whole sellers.
The sales promotion goods, the cooler etc are also stored here. The finished goods arrive at
different times from different packaging units.
Here I came to know that reading the Batch Code is an art.
There are 2 basic types of bath codes that tell the whole story about a particular product, namely:
* The one on the carton {outer}
* The other on the product itself.
It tells us
* Time, date and place of manufacture and subsequent packaging.
* With or without scheme
* Factory shift and day of production.
It is enticing to get to know the exact details.
Here is an example. T08M7T3
Tuesday = T
8th week of the year i.e. of month February = 08
Malanpur {manufacturing unit} = M
2007 = 7
The packaging units name = T
Third shift = 3
It is from here, that the goods to be distributed are sent to the respective distributors for further
allocation. The details of the arrival and dispatch are neatly fed in dedicated software.
The goods are kept on FIFO basis. FIFO stands for First In First Out i.e. goods which arrive first
in the depot are supposed to be forwarded to the distributors before other goods.
Now let‟s have a look at some of the norms which are followed while storing goods at the depot:
The cartons are stacked inside the markings made by yellow lines. This is to ensure that that there is
plenty of space to move around in the storage section. Also, you can see two cards in the pic, one red
and the other green. These cards are there to ensure that FIFO is properly followed. The cards inform
the labor that which cartons are to be transferred to the delivery trucks. Stock marked by green card is
the stock with an earlier expiry date(which arrived earlier in the depot) and it is supposed to be
forwarded first to the distributors. Similarly, stock with red card means that this stock should not be
transferred anywhere right now.
2) One other important factor in classification of towns is Market Potential Value Index
(MPV), It is defined for each town
1) Titanium Towns – In all, 35 cities have been classified as Titanium Towns. These are the
cities with population > 10 lakh and MPV > 30
3) Silver Towns – Total 274 cities with population > 1 lakh and MPV between 3 & 10
4) Rest of Urban(RoU) – All other urban towns(3975 towns as per Nielsen Census)
5) Super stockists
Further the Retail Environment has been classified on the basis of shopper needs and
the perception that shoppers have for different types of outlets.
- Food Stores
- Wholesale
- Hypermarkets
- Supermarkets
- Chemists
- Pan Plus
This RE wise activation is done only in Titanium and Gold towns. In RoU and
Superstockists, only wholesale and retail classifications exist, and in Silver towns, HEG is
the only RE which is treated differently.
Wholesale Wholesale
Hypermarkets Hypermarkets
Supermarkets Supermarkets
Chemists Chemists
- All Grocers and General Stores dealing in grains, provisions, spices, oil and branded
FMCG products can become HEGs if they fulfill any 3 of the following parameters –
More than 10 MFD(Malted Food Drink) large packs(>=500 gm) are on display
Typically, average monthly CIL value sale > Rs 6000 per month
- HEGs cater to the monthly grocery needs of the shopper while LEGs are typically used
for top-up(emergency purchase)
2) Food Stores
- These are the outlets whose main business comes from food products like baked
products, ice cream etc.
- It does not include outlets which stock FMCG groceries like soaps, detergents etc.
3) Modern Trade
Supermarkets – These are the self service outlets that have at least 1 computerized
checkout counter.
Hypermarkets – These are the self service outlets that sell food and non-food items, and
has at least 5 checkout counters. These outlets are air-conditioned and have more than
20,000 sq ft of space
4) Chemists
- An outlet which sells ethical allopathic medicines and also stocks FMCG products.
5) Pan Kiosks
- These are the outlets which sell Pan/Bidi/Gutkha and also stock FMCG products
- All Grocers and General Stores (which are not HEGs) which deal in grains, provisions,
spices, oil and branded FMCG products can be classified as LEGs. Typical parameters
for classification are –
- HEGs cater to the monthly grocery needs of the shopper while LEGs are typically used
for top-up (emergency purchase)
7) Wholesalers
- Any outlet which sells more than 50 % of his stock to other retailers can be classified as a
Wholesaler.
Note: The Analysis and comparisons in this report are done by comparing the
figures of April 2007 and April 2008. I have purposefully done so, keeping in mind
the factor of Seasonality. As we have seen in the past, the sale of Cadbury products
tends to decrease as the temperature rises. So, it would have been quite unfair to
compare sales of April with the figures of February and March (which are
comparatively cooler months than April). Though, there has been improvement in
many tasks( for example LBPC, penetration of Ulta Perk, AD category etc) from
February to April, but still I think that if we have to get a clear picture of the work
that we have done, then the data should b compared with the data from the same
time frame.
One more reason is that my project focuses on the effect of visibility programs, and the
Visibility programs were implemented from the first week of April. The outlets were
enrolled by the last month of March, and the visibility programs started giving the results
from April only. So I have compared the data of April 2008 with the data collected during
the same time frame in 2007.
I have done keeping the fact in mind that even the companies compare and analyze the
data of same time frame(for example Comparison of sales figures of Quarter 1 of one year
with Quarter 1 of another year) .
Since my Internship started from the month of February ‟08, I have collected the data from
February to April also, and have compared those using charts. I have put these charts at
the end of the report in Appendix C.
Figure 1
The figure clearly shows that the sales of Cadbury AD Category have improved in the Purple
Star Outlets. Last year in the month of April, the total sales of AD category in Purple Star outlets
was of Rs. 1,33,334. This year the total sales figure of AD has improved to Rs. 1,57,729. There
has been an increase of 18% in the sales. The visibility programs have clearly played their part
and have been very instrumental in pushing the sales of AD category in the hot month of April.
Figure 2
Here again, the sales of BC has gone up from Rs. 5,42,253 in April ‟07 to Rs. 7,48,087 in April
‟08. The major gainers are Cadbury‟s Dairy Milk and Ulta Perk .Clearly; Visibility programs
have played a good role in increasing the sales. All in all there has been an increase of 38% in
the sales of Chocolates.
Figure 3
This is one problem area. The visibility programs have not been able to improve sales of Bytes.
According to me the possible reason can be that if a shop has put up 5 strips of Bytes on display
but has put it near the salted snacks category then it will hinder the sales of Bytes, as the
customers will pick up those salty snacks which are well established in the market. One solution
can be to keep the strips away from that area, somewhere near the Cadbury chocolates counter.
The Cadbury chocolate counter will attract the customers near itself and Bytes, itself being a
product from Cadbury, can make a good use of it.
“Bytes” was launched as a sweet snack in the market which was dominated by salty snacks such
as Lays chips and Uncle Chips. So, initially it was competing against them, but then, after a
while, Lays launched its own sweet snack called “3-D”. So, now, there was another sweet snack
in the market which was giving direct competition to “Bytes”. If we consider today‟s market then
we will see that though the sales of Bytes are declining but still its way ahead of 3-D (this
So, this can be blessing in disguise for Bytes, because Lays has, knowingly or unknowingly,
created a different market segment by launching its product (3-D) against Bytes, and in that
segment Bytes is doing better than 3-D. So, in the future if this segment of the market segment
grows, then Bytes would be the most profitable player there.
Figure 4
The sales of Big Lines have increased from Rs. 5,13,422 in the last April to Rs. 7,62,126 this
year. So, in all there has been an increase of 48.4% in the sales of big lines. The major gainers
have been the family packs and Gift packs(Heroes, Celebrations etc). Now, one interesting fact
worth noticing is that Gift packs are usually always kept in the vertical spaces, and those vertical
spaces have proved to be very profitable. So, we can use those vertical spaces to push Special
value packs and other chocolates as well. Mostly smaller chocolates are kept in the horizontal
space only, but if vertical space has proved to be so profitable for Gift packs then we can put
some other products also in the vertical spaces.
We studied the Purple Star outlets and found out that on an average we have managed to increase
the shelf space for chocolates by 2 sq ft. The minimum requirement, as I have mentioned earlier
was of 3 sq. ft of Horizontal space (or a Visi-cooler) and 3 sq. ft of Vertical space. In most of the
outlets we managed to get much bigger space for Cadbury, but some outlets were reluctant to
provide us anything bigger than the minimum shelf space required. I have listed down the
increase in shelf space that we managed to get at each purple star outlet, and have put it in
Appendix E at the end of the report.
Now, the total shelf space that we managed to obtain for “Purple King Program” is:-
= 2 sq ft x 37 {because 37 Purple Star Outlets were enrolled in the “Purple King” Program}
= 74 sq ft
Now, this space of 74 sq. ft resulted in an increase of Rs. 2,05,834 in the sales of Chocolates.
= 205834 ÷ 74
= Rs. 2782
Thus, in Purple Star outlets, on an average, just 1 sq ft of shelf space was enough to push
up the sales of Chocolates by Rs. 2782.
Similarly, we found out that the increase in shelf space for Bournvita is about 1.2 sq ft. The
minimum space requirement to become a “Bournvita ka Baadshah” was of 4 sq. ft. So, the total
increased space would be –
= 1.2 sq ft x 35 (because 35 Purple Star outlets were enrolled in the BKB program)
= 42 sq ft
This 42 sq ft resulted in an increase of Rs. 24395 in the sales of Bournvita and thus pushed the
sales of AD category.
= 24395÷42
= Rs 581
Thus in Purple Star outlets 1 sq ft of shelf space pushed the sales up by Rs. 581
Now we can see that in the case of Chocolates, 1 sq ft of space was more profitable than in
the case of Bournvita. The reason is simple; more chocolates can be stacked in 1 sq. ft than
Bournvita. Plus we can also say that visibility has worked more in the case of Chocolates
than Bournvita.
In the case of Bytes though, the visibility programs did not increase the sales.
Though, the outlets which were enrolled in the Purple King Program kept at least 5 strips
of Bytes, it did not take the sales anywhere.
Thus, one thing is clear; sale of Bytes cannot be increased by the Visibility factor alone.
Here, when we talk about shelf space then we are referring to the Pure Shelf Space i.e. in that
space, only and only Cadbury Products were displayed.
Market Scenario
It is evident that the Visibility programs have worked in the case of Purple Star outlets, where the
Visibility is quite good, with distinctly defined space for various categories. But if we consider
the condition of the entire market then we can see that the Total Sales for the month of April ‟08
have declined in comparison to the sales in April ‟07. This fact comes as a surprise especially
when the total number of outlets covered has increased. The decline in sales figures is primarily
due to the existing Stock-pressure in the outlets. Even the wholesalers haven‟t made any big
purchases. BC is the only category which has registered an increase in sales in the month of
April (in comparison to last April). There are some active schemes on Bournvita such as
discounts for the retailers which will motivate them to buy stock in large quantities. One fact
which should be considered in this comparison is that last year, during these months, there was a
Free Gift scheme on Bournvita, which really had a very favorable impact on its sales.
Group & Cat Code Volume %(Cat) %(Grand) Value %(Cat) %(Grand)
BOURNVITA 6288.8 96.4 40.93745081 1306153 95.5 28.53081234
Cocoa 70.45 1.08 0.458599957 29861.44 2.18 0.652275148
DRINKING CHOC. 164.3 2.52 1.069524101 31726.5 2.32 0.693014385
ALL DRINKS (Cat Total) 6523.55 42.46557487 1367740 29.87608134
Assortment 618.07 7.54 4.023376514 238545.79 7.78 5.210649265
COUNT 1887.45 23.01 12.286508 512490.06 16.72 11.19452142
Chocolate Panned 311.84 3.8 2.029947631 197615.32 6.45 4.316588953
Gems 414.72 5.06 2.699653289 164929.63 5.38 3.602622605
Moulded 4092.17 49.89 26.63831066 1699558.24 55.44 37.12411732
Perk 877.66 10.7 5.713198556 252251.44 8.23 5.510027155
BASE CHOCOLATES (Cat Total) 8201.904 53.3909556 3065391 66.95853807
Byte 636.52 100 4.143478277 144912.8 100 3.165387135
Bytes (Cat Total) 636.519 4.143471768 144912.8 3.165387135
Group & Cat Code Volume %(Cat) %(Grand) Value %(Cat) %(Grand)
BOURNVITA 4548.43 93.09 32.34844 972181.3 90.02 20.97771932
Cocoa 130.8 2.68 0.93025 54680.59 5.06 1.179897338
DRINKING CHOC. 206.8 4.23 1.470762 53150.92 4.92 1.146890131
ALL DRINKS (Cat Total) 4886.03 34.74945 1080013 23.30451197
Assortment 668.23 7.6 4.752453 256737.5 7.43 5.539879959
COUNT 2157.08 24.54 15.34116 645907.9 18.69 13.93739512
Chocolate Panned 232.94 2.65 1.65667 138718.2 4.01 2.993259791
Gems 288.7 3.28 2.053235 117163.5 3.39 2.528153723
Moulded 4670.19 53.14 33.2144 2066830 59.79 44.59804074
Perk 772.13 8.78 5.49139 231252.5 6.69 4.989963968
BASE CHOCOLATES (Cat
Total) 8789.274 62.50933 3456611 74.58672481
Byte 385.43 100 2.741179 97726.47 100 2.108740996
Bytes (Cat Total) 385.433 2.7412 97726.47 2.108740996
Here, we can see that the total sales of two out of three categories have declined. We have sped
up the selling operations to surpass the last year‟s milestone. Our particular focus would be on
the wholesalers who, till now, haven‟t made any big purchases. Wholesalers are the key to
achieve the targets – both value wise and volume wise.
Figure 5
Figure 6
Figure 7
As can be seen in the graphs, the total sales of both AD and BC Categories have dropped in this
month in comparison to the last April.
AD Category: - Overall, there has been a decline in the sales of AD Category. This year the
sale of AD category in the month of April is of Rs. 10,80,013, whereas last year the total sale of
AD category for the same time frame was of Rs. 13,67,740 . The total fall in sales is of Rs.
2,87,727. In Percentage terms, there has been a decline of approximately 21% this year, in
comparison to last year.
BC Category: - In the case of BC category the sales have gone up this year. This year the sale
of BC Category in April has been of Rs. 34,56,611 , whereas last year the sale of BC category
for this category was of Rs. 30,65,391 . The total increment in sales is of Rs. 3,91,220 i.e. the
sales have gone up by 12.7%.
Bytes: - Bytes has also performed badly this year. The sales have gone down to Rs. 97,726
from last year‟s 1,44,912 . The fall is by Rs. 47,186 i.e. the sales of Bytes have declined by 32%.
One main reason for the decline in the sales of both these categories is that the wholesalers did
not make any big purchases in the month of April. The wholesalers are the biggest customers;
they place big orders and are thus instrumental in driving the sales – both volume wise and value
wise. Last year, in the month of April the performance of the wholesalers was quite good. We are
giving special attention to the wholesalers now and the Sales officer, Mr. Pawan Arora, is
himself accompanying the sales team to visit the wholesalers.
Wholesalers
As we have seen in the previous pages, the total sale of AD and BC category has declined this
year. One main reason for this decline has been our failure to book big orders from all the
wholesalers.
Let‟s look more closely at this issue by comparing the Whole Sale performance of last April with
this April.
As we can see, the total sales to the whole sellers have declined significantly. There is a huge
difference of Rs. 5,96,998 in the total sales. This year the AD category sold to Whole Sale has
fallen short of the last year‟s mark by Rs. 4,07,073 and BC category has Rs. 1,74,433 to cover up
to meet the last year‟s milestone.
We assume that one wholesaler covers 125 outlets directly. The decline in sales can imply that
the number of outlets being covered by wholesalers has gone down.
Here are the comparative charts of AD, BC and Bytes of this April and the last April:
Figure 8
Figure 9
3) Bytes Wholesale
Figure 10
Thus, it is visible that the total sale have not increased much because of the Whole Sellers
have not been very active, in this month.
To study the performance of Cadbury in the market, we need to investigate that how the Cadbury
products are performing in these different types of outlets. Now, Jagat Singh & Sons Agency
covers about 70% of the total Market of Chandigarh for Cadbury. It sells Cadbury products to
715 outlets. The breakup of these outlets is as follows:-
Figure 11
As we can see, LEGs take the major portion of the Pie. So LEGs are the key for achieving the
overall penetration targets.
RE wise performance:
Here is the performance summary of Cadbury products across the entire RE of Chandigarh in the
month of April „08. The penetration has been very good in HEGs and Supermarkets. In the case
of Food Stores, LEGs, Pan Plus, Chemists and New Channel, the penetration has been quite
decent. But the condition is quite bad in the case Whole Sale. We have covered only 80% whole
sellers, the penetration should have been 100% there. We really need to pull up our socks and
focus more on the Whole Sellers for the next month.
RE Wise Penetration:
Figure 12
We registered 100% penetration in the Super Markets and 95.36% penetration in HEGs. Overall
we have done a fairly decent job, as far as penetration is concerned. The only problem lies in the
case of wholesalers.
RE Wise LPBC
Figure 13
The LBPC is one major factor which governs the Brandwise Penetration. Since, penetration of
various brands is one major objective of this project therefore we worked hard to improve LBPC,
and as a result the LBPC started improving. Currently, the overall LBPC is 8.2. The culprits in
the equation(till now) are Chemists and Institutional buyers. We are working on them and expect
a good overall result.
Comparisons
If we talk about the penetration of various brands then this is one area where we have succeeded
in all fronts. The penetration of almost all the products has gone up in comparison to last year.
The total number of outlets (covered by Jagat Singh & Sons Agency) in Chandigarh City is 715.
The penetration is in percentage terms with 715 as the base.
Figure 14
The penetration of All Drinks category has improved to 66.80 % in April ‟08 in comparison to
43% in April ‟07. This is a good indication for future because once the Shopkeeper keeps some
product and it sells then it encourages him/her to order more and more of that product. This fact
is not only true for only All Drinks category, but for all the other categories and products.
The major portion of the sales of AD Category comes from the Sales of Bournvita. Bournvita in
itself has 8 different lines. Out of these 8 lines, 5 lines are of Regular Bournvita and 3 lines are of
Bournvita 5 star magic. Here is a complete list of Bournvita lines:-
Apart from this, AD category also consists of 4 lines of Drinking Chocolate and Cocoa. They
are:
It is a fact worth mentioning here that we were able to improve the penetration of AD category
because we were trying to increase the LBPC. We made it a point to see to it that at least one
product from the AD category is billed in the maximum number of outlets (which can keep
Bournvita or Drinking Chocolates). I realized during my initial market visits that the number of
tasks assigned to me in my project may look to be numerous, but almost all the penetration
related tasks are directly related to LBPC. After all, if we keep on increasing the LBPC then
obviously more and more lines from different categories will find their way into the outlets.
Figure 15
In the case of Cadbury Dairy Milk also the penetration has gone up from 52 %( April 2007) to 65
%( April 2008). Like in the case of AD category, here also the penetration has gone up because
we were working to improve the LBPC. CDM is the flagship product of Cadbury and though the
current penetration stands nowhere in front of the penetration that it achieves in the peek seasons,
but the increase in penetration in the hot months comes as good news.
29) CDM 12 gm
30) CDM 22 gm
31) CDM 40 gm
32) CDM 95 gm
41) Bourneville
With these many lines under CDM group, it was clear that we cannot improve LBPC without
improving CDM Penetration and vice-versa. Our little game of selling by “mixing n‟ matching”
different lines to improve LBPC resulted in the improvement of CDM penetration.
CDM Rs. 5/- Penetration - Comparison April ‟07 v/s April „08
Figure 16
5 Star Rs. 5/- penetration – Comparison April ‟07 v/s April „08
Figure 17
Penetration of Rs. 5/- line has been a real problem. Though there has been a significant
improvement in the penetration of Rs. 5/- line but still there is a long way to go.
For CDM Rs. 5/- , the penetration has improved from 35.7% in April last year to 52.5% in April
this year.
Penetration of Rs 5/- Five Star has improved from 40.80% to 49.90% for the same time frame.
We intend to push it as much as we can to obtain respectable figures.
We were able to convince a majority of retailers that Rs. 5/- lines of Cadbury are actually very
profitable lines. They occupy minimum of space and the strong brand names helps them to sell
easily. The argument that Rs. 5/- chocolates occupy lesser space (than other products like Rs. 5/-
biscuits for example) was very effective in convincing the retailers to keep these two products.
Figure 18
Since Ulta Perk wasn‟t there in the market during the April month of 2007, I have compared the
penetration with last two months. The data for April ‟08 is for only 15 days, so we expect the
penetration to go up by the end of the month.
Last month has particularly been very good for Ulta Perk. Penetration of Ulta Perk rose up to
57.34% in the last month. It shows that Ulta Perk has the potential to make it big in the coming
times.
Recently, Kentucky Fried Chicken (KFC) has tied up with Cadbury India for the sale of Ulta
Perk in the KFC outlets. This will surely help Ulta Perk in generating some extra revenues for
Cadbury.
Now, Ulta Perk can be the solution to the decline in the sales of Chocolates in summers. Since it
has a hard crunchy outer therefore it cannot melt, unlike other chocolates which are exposed to
the risk of melting when temperature goes up. Thus, we are promoting it as a chocolate that
cannot melt.
Figure 19
The total outlet penetration has gone up from 64.77% in April last year to 75.67% in this year‟s
April. We plan to take this figure to 80% by the end of the month. We can talk about meeting the
volume and value targets only if we cover the maximum number of outlets. This was one task
which received our special attention. We worked hard on this thing which resulted in an
increased Outlet penetration. There are many outlets which gave very small orders, but we can
expect them to give considerably large orders as the sales move up. Moreover, Outlet penetration
is directly proportional to the number of “No order Parties”, because by the end of the month all
those outlets which have not been covered by the RDSMs come under the category of “No Order
Parties”. If we calculate the number of No order parties for the two months in consideration then
the number of “No Order Parties”, come out to be:-
Thus, one more evidence to prove that we are doing better than last year.
LBPC Comparison
LBPC, as I have mentioned earlier, stands for Line Booked per Call. There has been a
considerable improvement in the LBPC since last 3 months, and the current LBPC is way ahead
of the LPBC that was there in April ‟07.
Figure 20
When I started working on this project, the LBPC was at 7.5 . Then we started working to
improve the LBPC as it was directly related to the penetration of all the major lines of Cadbury.
It resulted in an improvement in the penetration of various lines such as Rs. 5/- lines, CDM
group and Bournvita group etc. We paid special attention to CDM group and Bournvita group as
these two groups constitute the maximum number of lines in Cadbury portfolio. Bournvita group
has 8 lines, whereas CDM group has 14 lines, and we made sure that the retailer knows about all
the options available to him. We also pushed Ulta Perk as the chocolate which can easily beat the
summer heat.
If we compare the LBPC with last year, then we will see that there has been a significant growth
in LBPC. Reason is simple, last year though the company was trying to push its various lines; it
was not an organized affair at distributor‟s level. We made sure to keep the sales force working
in an organized manner to meet the targets.
Here is the comparison of LBPC with last April (April ‟07 v/s April „08)
Figure 21
If we compare the LBPC of April ‟08 with the LBPC of April ‟07, then we can see that there has
been a total growth of 18%. The improvement in LBPC has reflected in the increased penetration
of almost all the other lines of Cadbury.
Figure 22
This is one area of major concern for any company. Damages affect the profitability of a
company in an adverse manner, so companies try to minimize the damages in all possible ways.
If we see the figure then we can see that the damages have increased in the month of April ‟08 in
comparison to the damages in April ‟07.
In April ‟07 the total damages were of Rs. 26,964 out of the total sale of Rs. 45,78,044 i.e. the
total damages were about .58% of the total sales.
But, if we consider the month of April ‟08, then we can see that the total damages are of Rs.
41,397 out of the total sales of Rs. 46,34,352 i.e. the total damages are about .89% of the total
sales.
The major portion of the damages in April is contributed by the return of the products that were
sold during the Festive season. “Diwali Celebrations (RDFC Range)” packs alone contribute
about 40% of the total damages. And due to this the damages in the month of April have been
significantly high.
Though the damages have been very high in the month of April, but one good thing is that since
all the big Celebration packs (which were about to expire) have been returned by the retailers
therefore damages in the coming months are expected to be very low.
Later in this report I have done an analysis of Damages, identifying products as well as the
outlets which contribute maximum to the overall amount of damages.
MSS Compliance
This is one area where we haven‟t made much improvement. We need to work on this thing by
focusing on the specific SKUs for specific outlets. The company has specified the Must Sell
SKUs for different REs. The list of Must Sell SKUs has been given to the RDSMs in the form of
a booklet. The RDSMs were given clear instructions to keep the MSS booklets with themselves
during their beats, so that they do not forget that what all SKUs they are supposed to bill in the
different outlets.
Figure 23
MSS Compliance declined in the month of March. MSS compliance was at an all time high in
February. One reason for that high MSS Compliance in February is that during that time there
was a scheme from Cadbury called “Tambola”, which helped in pushing up the figures of MSS
compliance for that month.
So, in the month of February, MSS Compliance was being pushed by a scheme rather than
RDSMs.
*Note: The complete list of Must Sell SKUs for different REs is given in the Appendix D.
Last month, apart from” Bournvita ka Baadshah”, there was one other scheme for Bournvita,
which focused solely on 500 gm packs(Chocolate and Five Star Magic). Under this scheme,
retailers were to get a discount on purchase of Bournvita 500 gm packs. The discounts were as
follows –
The scheme helped us in billing 500 gm refill packs in more and more outlets, but overall refill
packs are still a long way behind Jars in terms of penetration and sales.
We conducted a survey to investigate reasons for this mediocre performance of Refill packs. The
survey was conducted on 400 outlets chosen at random. We used questionnaires (which were to
be filled by the retailers) for this survey. The questionnaire is given in Appendix F.
from consumer
The first objective was to see that how many retail outlets kept the following mentioned Malted
food drinks, and the following was found out(of the 400 outlets taken as sample):
Thus from the above we can see that in 400 outlets taken as sample of BV 500 gm pack has 71%
penetration, followed by Horlicks at 40.5%, Complan at 19%, Boost and Maltova at 21.5%,
Complan at 15.5%, and Milo at 14%.
The second objective is to find out as to how many outlets keep the Jar and how many keep the
Refill Packs:
Bournvita 90 gm - 151
Bournvita 500 gm refill packs - (204 - BV chocolate, 143 – BV 5 star)
Bournvita 200 gm jar - (210 – BV chocolate, 131 – BV 5 star)
Bournvita 500 gm jar - (284 - BV chocolate, 169 - BV 5 star)
Bournvita 1 kg jar - 120
Thus we see that, in the surveyed outlets BV 500 gm Jar (chocolate + Five Star Magic) has 71%
availability, whereas BV 500 gm refill (chocolate + Five Star Magic) has 51% availability, with
90 gm being only 38% available.
The third objective was to find out what is the need for the retailer to keep BV 500 gm Jar. As
we can see below, in the questionnaire different parameters were mentioned and the retailers
were asked to fill strictly, in one parameter. In front of the parameters, the number of retail
outlets which gave their preferences has been mentioned. The sample was taken of 284 outlets.
BV 500gm jars
From the above we can see that a majority of retailers keep the product because they say that
customers ask for jars, as many as 43% agreed to this. 16% of the retailers said that they find the
jar packing more convenient. Another 32% had kept the product because of the schemes which
had come with the Jar, and another 8% saying that there are more options SKU wise in Jars, thus
they prefer keeping jars.
The fourth objective was to investigate why some outlets do not keep the Refill packs. For this
also a set of parameters was drawn and the following was found out:
(Sample taken as 196 outlets which do not keep the Refill Pack)
From the above we can see that 15% retailers are unhappy with the packaging with 9% showing
concern for rat cutting and 9% showing concern for damage / expiry problems. About 39% say
that refill packs have no demand, and 15% quoting summers as the main reason for not keeping
the product. Around 5% say that company does not provide POP services such as banners,
hangers etc .
The fifth objective was to find out ways and means for the company to increase sales of refill
packs either by volume or by increasing the number of outlets. Here those outlets were taken into
consideration, which do not keep the product (i.e. 196). Again a set of parameters was given and
the following was found out:
23% respondents are quoting that advertisements of refill packs should be running on the
electronic medium as the consumer is still unaware of the use and meaning of refill packs.
Around 15% respondents want package change so that it is saved from rat cutting. 20%
respondents would like that there should be more proactive effort from the company in cases
dealing with expiry/damage and another 16% saying to bring consumer schemes in order to
generate demand for refill packs. Around 8% respondents are also asking for POP material.
The sixth objective is to check the psyche of the consumer, whether he/she changes his
preference or not. A sample of 204 outlets which keep refill packs was taken.
The question asked was - Has it happened that a consumer has come and asked for refill pack,
and in case it is not available he has:
Taken jar - 72
Taken some other companies refill pack - 7
Thus we can very clearly see that 53% respondents said that they have sufficient stock to cater to
customer demand, thus this means that on a weekly basis the sales force replenishes the left out
stock. But 35% also said that on not finding refill packs consumers do prefer jars, with 7%
preferring not to buy anything else in case of unavailability of Refill pack.
The seventh objective was to find out the retailer psyche wherein he was asked if a consumer
comes and asks for refill pack and you do not have it, then you will:
Thus we can see that in case the refill pack is unavailable then 82% retailers will push BV Jar to
the consumer, with 3% not forcing the consumer to buy any other product and 14% pushing
some other company‟s product.
If we consider this analysis then the main reasons for Refill pack‟s mediocre performance
can be :
Stock unavailability: the product has been unavailable most of the times.
Less effort from sales force: the sales personnel is not taking interest in pushing the
product, this can be because of following reasons:
i) does not have confidence in the product
ii) forgets to make the product available/ name the product at the retail
iii) does not push the product at the retail counter
From whatever analysis has been made above it should be known that it all depends on the sales
force for making the product available at the counters first and this is the most important step in
distribution. There can be a few things which the company can do to improve sales for Bournvita
500 gm Refill Pack. These can be :
Set sales target on a daily basis of not only volume generated but also the number of
retail outlets the product is made available at.
Give monetary incentive to sales personnel achieving the targets.
Persuade those intermediaries which do not keep the product, to carry the product,
Persuade an intermediary to carry more units
Stimulate retailers and their sales people to push the product
Provide support (POP material)
Bring schemes for consumers
Analysis of Damages
Damages have troubled us a lot in last few months. The damages were particularly high in the
month of April. One reason for high amount of damages in April was that a large quantity of
Celebration packs (Rich Dry Fruit Collection range), which were billed during the festive season
in 2007 was returned. But when we investigated more closely, we found out that the main culprit
in this equation was “Bytes”. “Bytes” is a sweet snack which comes in pouch packs. It needs
special care during storage as a little bit of rough handling can result in leakage of air from
packs. Retailers usually throw the strips of “Bytes” in a room or buckets when they close their
shops. This rough handling results in product getting damaged, and the company has to take back
the product.
Here is a list of ten products which have contributed the maximum to the damages. The data in
consideration is from 1 st April ‟08 to 15th May ‟08.
Here we can see that Celebration RDFC packs and Bytes contribute the most to the damages
during this timeframe. The total amount of damages during this period was Rs. 62,120. Out of
this, share of “Bytes” (17 gm pack + 35 gm pack + Chocolate 35 gm pack + Caramel 35 gm
pack) is of Rs. 17,086 i.e. “Bytes” contribution is of 27.5% in total damages.
Now it is the responsibility of the RDSMs to tell the retailers that “Bytes” should be handled
carefully. Clear instructions have been given to the RDSMs that they have to inform the retailers
that rough handling can damage the products which in turn will bring down the profits of the
company as well as the retailer. Each RDSM covers about 35 outlets daily. All he has to do is to
tell about this thing to the retailer while he is booking orders. Thus, if the retailers start
understanding the reasons due to which “Bytes” is getting damaged, they will definitely take
more care while stocking this product.
Other major contributors to this total amount of damages are Celebration RDFC packs. The
unsold Celebration RDFC packs which were billed during the festive season were returned by
the retailers. I personally feel that this could have been controlled if all these RDFC packs were
kept with proper visibility in the outlets. We have seen that visibility is the main factor which
drives the sale of chocolates thus all the RDSMs have been instructed to check regularly that big
packs are properly placed within the outlets. RDSMs have also been instructed to see to it that
only that much stock is billed in an outlet which it can sell in one week. Otherwise overstocking
can also result in stock getting damaged.
We have also identified 13 outlets which returned more than Rs. 1000 worth of stock as damaged
during the last month. Respective RDSMs have been told to inspect these outlets and investigate
the reasons for high damages so that it can be controlled in the future. Here is a list of those
outlets:
This list contains the names of some of the biggest outlets in Chandigarh. (RDFC) and the
majority of damages from these outlets are because of the return of Celebrations RDFC packs.
The number of pieces (of each SKU) to be sold, in one month, have been mentioned alongside
the SKUs in the card.
The incentives/prizes are based on the rules of Tambola. The different prizes are as follows:
1) Four Corners Prize – If, in one month, the RDSM is able to sell given quantity of SKUs
on four corners of the card then he will get Rs. 100.
We have put CDM SVP, Ulta Perk, Bytes Choco and Bournvita Five Star Magic in the corners
because these are the products on which we really have to focus in these months. My project
focuses on big lines of Cadbury, therefore CDM special value pack is on the first corner. Then
the other corners are occupied by those SKUs which are struggling with sales. The incentive will
motivate RDSMs in pushing these particular lines.
2) Lines Prize – If, in one month, an RDSM is successful in selling the given quantity of all
the SKUs in any horizontal line then he will get a Lines Prize of Rs. 100. One RDSM can
win a “Lines prize” four times i.e. in all, an RDSM can win Rs. 400 as” Lines Prize”
3) Full House Prize – If an RDSM sells all the SKUs given on the Tambola Card, then he
will win a full house prize of Rs. 500.
Therefore, an RDSM can win a maximum Rs. 1000(Four Corners + Four Lines + Full House)
If an RDSM succeeds in making a “Full House” then that will mean that the RDSM is giving a
total business of about Rs. 3,34,000 to the distributor from these 28 SKUs. Then there are many
more SKUs which are not on this card, but are regularly sold by the RDSMs. If a distributor gets
so much business from each RDSM then it should not be a problem for the distributor to give the
mentioned incentives to the RDSMs.
Since this scheme mainly focuses on MSS compliance and LBPC, therefore one condition which
we can put is that only those RDSMs who maintain a MSS compliance of 70% can win prizes
under the Tambola scheme.
Emotional Marketing
Communication is the highway used to exchange emotional value. Emotion marketing is
impossible without a robust, ongoing, two-way dialogue.
Cadbury took the route of Emotional Marketing in 90s when it started repositioning Dairy Milk,
its power brand, as a chocolate bar for everyone. It tried to create an emotional bond with the
customers, which in turn strengthened the image of the brand in the minds of the customers.
I personally feel that a report on Cadbury cannot be complete without a discussion on Emotional
Marketing. So, here is a short study of how Emotional Marketing works:
• Relevance
• Timing
• Sender-recipient relationship
• Frequency
• Perceived value
Equity
Equity:
Equity is all about trust. They both are very closely tied. Company‟s foundation of trust doesn‟t
appear overnight but it‟s built over the years. Once earned, it‟s the foundational source from
which the relationships develop and flourish.
The power behind a brand name that consumers insist on is undeniable. And it all begins with a
promise- a promise to deliver value to consumers. Over the time they become expectations. As
those expectations are fulfilled over the time they become reputation. People come to rely on,
seek out and support brands much as they do certain friendships.
Powerful brands assert their strength at every phase of a consumer relationship. They help to:
The company must ask itself: what does it strive to be? What promises it intends to deliver?
The identity must be durable and timeless. It must communicate well and consistently.
Brand identity is only half the story. After the company has decided what it aspires to be and is
communicated consistently, the process falls on the consumer to hear the message and
experience the brand. They form opinions and perceptions, this becomes the Brand Image.
The key is “Marry Brand Image to Brand Identity”. There should be no sort of “disconnect”
with the brand. Identity and image must coincide to develop trust.
Experience
Experience:
Experience can be defined as the collection of points at which companies and consumers
exchange sensory stimuli, information and emotion.
These exchanges can take place anywhere. They fall into 3 broad categories:
• Emotional Exchanges- when consumers and company connect emotionally. E.g. getting a thank
you note from the company or when the consumer expresses that he was happy with the
purchase.
A company that demonstrates a high level of care for the customers, it will be rewarded by their
loyalty.
The core of any experience is the use of the product or service itself. Compelling experiences
like a chance to meet the Brand Ambassador is powerful because they add extra value and can be
a factor that moves the customers from being aware of the brand to preferring it – even insisting
on it.
The strongest, most compelling experiences address an emotion. If experiences can meet
people‟s basic human needs. Then consumers will reward the company with loyalty.
Energy
Energy:
Energy is made if time- and in today‟s society; people‟s time is being stretched in more
directions than ever.
By letting consumers focus their time on the important activities, events and people in their lives
- as opposed to transitional product details- companies make as emotional connection with them.
Conserving people‟s energy also sends a message that a company values its consumers and
customers. Wasting their time, on the other hand, says a company does not care.
• Easy to use
Companies can use technology and information combined with enquiry to empower the
customers with the ability to create even more time. Effectively managing people‟s Energy
implies that all exchanges with the company are interesting and engaging to the customer. N ot
wasting a person‟s time enhances a one-to-one marketing strategy.
Give your customers an emotional punch of “I must be really valuable to the company.”
In today‟s new economy, the consumers have an enormous array of choices to meet their needs. If the
company fails to offer a solid product value, consumers will have an easy time defecting to a competitor.
Product and money are cost of entry into a competitive market. A brand will win based on Emotional E‟s,
but satisfying the rational side is necessary to get into customer‟s decision sets in the first place.
Choosing to lead solely on Product and Money is not a sound strategy- they are the easiest marketing
tools for a competitor to replicate, and do not represent a sustainable, competitive advantage.
A strong emotional component will transcend consumers‟ rational thoughts and appeal to their hearts.
And the heart, after all, is where purchase decisions are made and bonds between company and consumer
are established.
Conclusion
Mckinsey estimates that the retail industry in India is worth $292 billion currently and is likely to
touch $350 billion by 2010. Much of the sector continues to be unorganized with only 3%
accounting for organized retail. This is likely to go up in the future with about 10-15%
accounting for organized retail by 2010. But the fact still remains that a mere 3% organized retail
is like a drop of water in the huge mass of ocean. The majority sale still comes from the
unorganized sector.
In spite, unorganized retail, being a front runner, companies are finding difficulty in penetrating
the markets. A company like Hindustan Lever Limited, which is a master in managing
distribution professes that out of the 6, 50,000 villages existing in India it has only reached to 1,
50,000, thus there is a long way to go before being called a master.
Companies are increasingly taking a value network view of their businesses. Instead of limiting
their focus to their immediate suppliers, distributors and customers, they are examining the
whole supply chain. A company should be thorough with its markets and know its strength and
weakness till the local level in the distribution chain.
Today competition is not only rife but also growing more intense every year. Because marketers
have become so competitive, understanding customer is no longer enough. Companies must start
paying keen attention to their competitors.
In the ever-changing marketing environment, distribution channels do not stand still. New
wholesaling and retailing institutions emerge, and new channel systems evolve. The companies
must be proactive enough to understand these changes, so that they can not only grow or expand
but also evolve itself into a company which reaches to the consumer. In order to do this the
companies should periodically evaluate its reach and on a timely basis assess if in actual terms
they are able to reap benefits.
If we consider Chandigarh, where the market is very organized and demanding, then we can see
that the deciding factor for the performance of any FMCG company is its distribution network.
Being good in the terms of distribution network is just not enough; a company‟s distribution has
to be a cut above the rest if it has to reach the top spot.
Cadbury being the number one chocolate company faces direct competition from all the other
companies combined. Everyone wants to gain the number one position by displacing the
company at the top. So Cadbury just cannot relax, its distribution team has to work day in and
day out to outsmart all the emerging competition. The main objectives of this project such as
enhancing the visibility, improving the penetration and LBPC, reducing the damages etc; are the
basic tools which help a company to strengthen its distribution network.
This project gave me a valuable understanding of the FMCG sector, and how various companies
compete with each other in the market. While working on the objectives of this project, I got to
understand -
How major FMCG players work to push their various categories, especially the
following:
a) Chocolate and The Confectionary market (Base Chocolate)
Area enclosed in Blue is covered by Jagat Singh and Sons Agencies, and the rest is covered by
KK and Co.
1) AD Penetration
6) Outlet Penetration
On the basis of outlet penetration, the number of “No Order Parties” can be calculated for
respective months. Therefore, the number of No Order Parties for these three months are
as follows :
Since April is the first month of new financial year, therefore the number of no order parties at
the beginning of the month is actually the total number of outlets being covered by the
distributor. Therefore, total number of No Order Parties at the beginning of this month was 715.
7) LBPC
FIVE STAR 17 g
FIVE STAR CRUNCHY 32g
FIVE STAR FRUIT & NUT 45g DISP/OTR
PERK 15G
CADBURY ULTA PERK 15G
GEMS 12.3G POUCH
GEMS JUNGLI 12.3G POUCH
NUT BUTTER SCOTCH 245G TIN
ALMOND MAGIC 175G TIN
CADBURY BYTES CARAMEL 37G POUCH JRC MONS
BYTES 40G POUCH
BYTES COFFEE 40G POUCH
CADBURY CELE-YEAR ROUND-166.6G (RACT)
CADBURY CELE-YEAR ROUND- 265.6G (RACT)
BOURNVITA 500 GP (FIVE STAR MAGIC)
BOURNVITA 500 PJ (FIVE STAR MAGIC)
BOURNVITA 500G GP (RELAUNCH)
BOURNVITA 500G PET JAR
BOURNVITA 1KG PET JAR
INSTITUTIONAL/OTHERS 0
LOW END GROCER 10
BOURNVITA 500G PET JAR
CADBURY DAIRY MILK 12G FLOW PACK
BOURNVITA 200G PJ (NEW RECIEPE)
BYTES COFFEE 18G POUCH
PERK 15G
BOURNVITA 90G POUCH
BYTES 18G POUCH
CADBURY DAIRY MILK 24G
GEMS 12.3G POUCH
FIVE STAR 17 g
NEW CHANNEL 0
PANPLUS 7
CADBURY DAIRY MILK 12G FLOW PACK
CADBURY DAIRY MILK 24G
FIVE STAR 17 g
PERK 15G
BYTES 18G POUCH
BOURNVITA 200G PJ (NEW RECIEPE)
BOURNVITA 90G POUCH
SUPERMARKET 42
CADBURY DAIRY MILK 35GX3 SVP
CADBURY DAIRY MILK 165 g
CADBURY DAIRY MILK 12G FLOW PACK
CADBURY DAIRY MILK WOWIE 22G
CADBURY DAIRY MILK 24G
CADBURY DAIRY MILK 40G
CADBURY DAIRY MILK 95G CARTON PACK
Appendix F - Questionnaire
Questionnaire used for the survey conducted on Bournvita 500 gm Refill
packs -
BV 1kg jars
5) What should the company do in order to increase the sales of refill packs:
a. bring schemes for consumers
b. bring schemes for retailers
c. change packaging
d. advertise more
e. provide support (POP material)
f. sales man should be informing about the product and the various schemes
g. price cuts
h. bring more line/variety
i. more proactive in damage/expiry return, especially rat cutting
6) Has it happened that a consumer has come and asked for refill pack, and in case it is not
available he has:
a. Taken jar
b. Taken some other companies refill pack
c. Not purchased any
d. Not happened till now
7) If a consumer comes and asks for refill pack and you do not have it, then you will:
References
a) The Cadbury India website provides many informative links to the brands,
categories and products of Cadbury(http://www.cadburyindia.com/)
c) The FICCI website provides many useful links to the current state of Indian
Chocolate and confectionary industries(http://www.ficci.com/)
d) Dasgupta, P.M., & Chakraborty, A. (2008, February 26). Evolving with the times.
Brand Wagon, pp 1
e) Kotler, P., Keller, K.L., Koshy, A., & Jha, M. (2006). Marketing Management – A
South Asian Perspective(12th ed). New Delhi: Pearson Education, Inc.
f) Ries, A., & Trout, J. (1986). Marketing Warfare. New York: McGraw-Hill