IMPROVING SALES OF PRODUCTS IN PERFETTI VAN MELLE INDIA PVT.LTD.

"

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT
UNDER THE GUIDANCE OF:
MRS. MONIKA SHARMA PROFESSOR, SDCMT

UNDER THE UPERVISION OF:

MR. VISHAL SHARMA PERFETTI VAN MELLE

SUBMITTED BY ANURAG SINGH PGDM 2011-2012

SUNDERDEEP COLLEGE OF MANAGEMENT TECHNOLOGY NH-24, DASNA, GHAZIABAD

CERTIFICATE

ACKNOWLEDGEMENT
Outstanding Achievement is not possible in Vacuum. It needs a lot of help and assistance besides a healthy environment, luckily I have. I express my deep sense of gratitude to Perfetti Van Melle for giving me the opportunity to carry out my project. I am grateful to Mr. Vishal Sharma (Perfetti Van Melle) for his precious guidance, constant inspiration, intelligent critics, which helped me to carry out this project. It is a great privilege for me to work under his guidance. I am also thankful to my external project guide for helping me at every step & sparing their valuable time for me. I wish to extend my appreciation and thanks to all Project Assistants for their tremendous cooperation and encouragement during my project work. I am grateful to Prof. DR.Vishal Sharma (Faculty Mentor) SUNDERDEEP COLLEGE OF MANAGEMENT TECHNOLOGY for guiding me throughout my project work. Last, but not least, I gratefully, acknowledge the moral support, encouragement, and patience of my family.

TABLE OF CONTENTS
1. Cover Page 2. Title Page 3. Certificate from company 4. Contents 5. Acknowledgement 6. Executive Summary 7. Chapter I: The Company 7.1 Company Profile/History 7.2 Brief description of the Products
8. Chapter II: The Project- Enhancing Sale of Perfetti products

8.1 Purpose and scope of project 8.2 process of sales and distribution 9. Collection and analysis of data 9.1 Data collection 9.2 Data analysis 9.3 SWOT Analysis for Perfetti Van Melle Distribution Channel 10.Findings & Recommendations 10.1 Findings 10.2 Conclusion 10.3 Recommendations 10.4 Constraints & limitations 11.Bibliography

EXECUTIVE SUMMARY
This project is intended as a part of the academic requirement for completion of PGDM program. As a precursor to this, I have preferred to work with Perfetti Van Melle Company to gain marketing insight and other intricacies of marketing activities through the summer project by involving myself to the extent possible. The purpose and scope of the study is to carry out a market survey to find out the consumer taste and preference regarding confectionery items and also to find out the possible ways to enhance sales by identifying and reducing distribution channel gaps. All the required marketing ammunition have been deployed to arrive at a conclusive decision, supported by suitable data collected directly by preparing questionnaire and also using secondary data. The study enables the enterprise to identify the customers needs and wants. Thus, it enables the organization to produce the products and services which provides satisfaction to customers. This enables the firm to achieve its objective.

COMPANY PROFILE
PERFETTI VAN MELLE
Perfetti Van Melle India, a fully owned subsidiary of the global conglomerate Perfetti Van Melle, headquartered in Lainate, Italy, started its Indian operations in 1994. The company today enjoys close to 30% market share, thus making them one of the leading players in confectionery industry in India today. Perfetti Van Melle entered the Indian market in 1994 by offering its first brand Center Fresh, followed by Big Babol and Alpenliebe in 1995. The other brands like Chlormint, Mentos, Fruittella, Cofitos, Happydent and Marbles followed subsequently. PVMI enjoys a huge brand recall among its consumers which form a total estimated market size of Rs.3000 cr. Perfetti Van Melle India has more than 15 brands under its umbrella, all of which have been launched after considerable market research and insight so as to adapt to the likes and preferences of the consumers. The climatic conditions of the Indian geographical region have been kept under consideration for product composition and long shelf life. In the year 2008 PVMI clocked close to 850 Crores. The PVMI manufacturing units in India are located in Gurgaon and Chennai with another plant commissioned at Rudrapur, Uttaranchal in 2007. The Indian subsidiary also takes care of the development of South Asian markets and exports to other Asian countries. Perfetti Van Melle has adopted an aggressive sales strategy to retain the numero uno position in the confectionery industry in India backed by a wide network of Carry & Forwarding agent (C&FA), distributors & sales force. Perfetti Van Melle India has a network of around 4,500 distributors spread across 2000 urban towns. PVMI brands have launched several innovative ad campaigns like Happydent White, Chlormint, Alpenliebe and Mentos which have won several awards for the company like the Abby for Protex Happydent & Centre Fresh, Cannes (Silver & Bronze) & Ad fest for Happydent White and Effies for Mentos.

In addition to these global brands, Perfetti Van Melle offers a wide range of products, the popularity of which is rooted in individual, local, and regional markets. The ability to develop products, versions, and flavors, that suit the different demands and opportunities of the local market is indeed one of the groups key to success. Perfetti Van Melle innovations provide ample proof of the effectiveness of its product customization strategy and its attention to consumer demand .In many Asian countries Alpenliebe is produced with formulas, packaging & formats that vary according to local preferences, making it the market leading candy.

HISTORY
Perfetti Van Melle is a privately owned company, producing and distributing candies and chewing gums in more than 130 countries worldwide. The founders the brothers Ambrogio and Egidio Perfetti from Italy, and Izaak Van Melle from Holland- were gifted with great initiative, intelligence and instinct. Though they did not actually know each other, these men had much in common: the same ambition, the same spirit and the same intuitions that encouraged them to found two great companies, albeit in different times and hundreds of kilometers apart. Perfetti Van Melle was established in March 2001, through the merger of Perfetti S.p.A and Van Melle N.V; however the two companies had been cooperating in the number of countries since 1979. Later, in 1991 common interests led Perfetti to acquire a 37% share in Van Melle. This was the only first step in the partnership that was to prove profitable from the outset, growing even stronger until in January 2001 Perfetti bought Van Melles entire shareholding. In July 2006 PVM acquired 100% of Chupa chups a family owned Spanish group, thus strengthening its position as the third largest confectionery group in the world, and becoming the first player in the global sugar confectionery market. This further acquisition reinforced the leadership position of the group in the confectionery market, expanding its sales potential in mature and developing markets. The 1970s witnessed the launch of the brands that were to become favorites with consumers around the world: Big Babol, Morositas, Vigorsol, Happydent, Vivident, and Alpenliebe. Employing over 14000 people and operating 32 companies throughout the world. Perfetti Van Melle has a true global reach: it is present in the Asia pacific region, Europe, Middle East, Africa, and the America. Its corporate headquarters are located in Lainate (Italy) and in Breda (the Netherlands). Several of its brands are household names and are much loved throughout the 5 continents.

COMPANYS VISION
Company will enhance world leadership in confectionery by creating value for people through delightful and imaginative high-quality products.

MISSION STATEMENT
Develop, manufacture and market high-quality and innovative products for consumers through efficient use of resources and in partnership with customers. Create a fulfilling workplace for employees built on trust, mutual respect, and appreciation of their diversity. Value the role we play in communities, as a socially and environmentally committed organization. Generate economic value through superior growth and profitability.

COMPANYS VALUES
Living the Perfetti Van Melle values requires courage, vision, trust, commitment, and pragmatism. The following values guide the actions in realizing the mission of the company:

Integrity Without Compromise

Perfetti Van Melle conducts the business with honesty, integrity, and respect for those with whom they have relationship.

Achieving Excellence
Perfetti Van Melle pursues quality in everything they do. They strive for continuous improvement in the way they operate.

Dedication to the Consumer

Perfetti Van Melle will meet and surpass the differing needs and expectations of our consumers, delighting them with high quality, state-of-the-art and innovative products.

Care for the people

Perfetti Van Melle is committed to creating a global workplace where teamwork, involvement, open communication, flexibility and fun exist. They treat the people fairly; they value different styles, skills, experiences, and backgrounds and acknowledge that these differences result in greater creativity and better insights.They encourage them to take initiative and expect them to approach their jobs with passion and

10

commitment. They offer their people the training opportunities and ongoing development so that each individual can reach his or her full potential.

Social and environmental Responsibility

Perfetti Van Melle conducts the business as responsible members of society, respecting the laws of the countries in which they operate and Contribute towards the progress of the local communities in line with the legitimate role of the business. Company operates safely, responsibly and with sound environmental practices, aimed at minimizing the impact on the environment and working toward long-term sustainability.

Independence

Perfetti Van Melle is committed to achieving ambitious business goals while securing our companys profitability thus ensuring their independent growth.

PERFETTI BRANDS ALPENLIEBE

Alpenliebe is the flagship brand of Perfetti Van Melle and a leader in the confectionery market. The product, a rich milky caramel toffee, is a combination of milk and caramel & has a unique mouth-feel, making it an
11

irresistible treat. Alpenliebe was launched in India in December 1995 with a distinct product proposition: The candy was an amazing mix of caramel, milk and butter. It was the 1st deposited candy in the Indian market and therefore the eat experience was most unique. Other than the Caramel flavor, Alpenliebe is currently available in Cream Strawberry, Chocolate, Coffee and Cream Banana flavors. The platform of irresistibility was a perfect fit with the unique product experience. Looking back at the last 10 years, Alpenliebe has successfully managed to capture the sweet tooth of kids, teenagers and adults across various sections of society. It has become synonymous with irresistibility and has become a house-hold name.

BIG BABOL

Big Babol was launched in India in 1994, since then it has become one of the biggest bubble gum brands in India. Over the years it has become a favorite amongst the kids all over the country. Big Babol is available in Fruit Flavor and Ripe Mango flavour. It is a brand which is known to have very yummy taste and you can blow big bubbles out of it, and this comes with an added advantage that bubble gum does not sticks to you face. It has been positioned on the fact that how you can use big bubbles to your advantage and make Big Babol BADE KAAM KI CHEEZ. Over time, especially with the diametrically different communication route
12

adopted by the tagline Bade Cheez, the main product attributes- that it blows the biggest bubbles and is soft and non sticky has been established very well.

CENTER FRESH

Center Fresh, the flagship brand of Perfetti Van Melle's was launched in 1994. It was the first liquid filled chewing gum which has tantalized the taste buds of millions of Indians and is a house hold name today. Over the years, Center fresh has grown to become the largest selling gum brand in India. It is available in Spearmint, peppermint and Sweet mint flavours and in the Re 1 mono and 5 pcs Rs 6 stick. The brand was advertised on the freshness route in 1996 and associated itself with the prestigious Cricket world cup and was named the Official Chewing Gum of the World Cup. In early 2000, its iconic advertising of the variants helped positively rub off on Center fresh. First was the launch of Center Shock, with the hilarious Barber creative, which immediately won the hearts of consumers who were rushing to the nearest stores to try
13

the really Sour gum. This was followed by the launch of the coated Center fresh with intense freshness - Air Action Center fresh. This variant was supported by the witty Swing in the park creative where a boy used the freshness of Air Action for blast of fresh air which swinging his girl friend in the park.

CENTER FRUIT

Center Fruit was launched in the year 2006 as Indias first ever fruit-flavored liquid-filled gum. It was launched with 2 tantalizing flavors, Tuttii Fruity and Grape. Initially, it rode on the strong equity of Center Fresh but over the years, the brand has carved a niche for itself and is one of the fastest growing brands in Perfetti Van Melle portfolio today. In addition to Tuttii Fruity and Grape, the brand has added 3 more delicious flavors Peach, Strawberry and Watermelon. Center Fruit is positioned on irresistibility and has been making
14

tongues wag for over 4 years now with its unique fruit flavors, a splash of liquid bursting in the mouth and an everlasting essence of your favorite fruits. No wonder then that consumers all over the country go KAISI JEEBH LAPLAPAYEE.

CHLORMINT

Chlormint was launched in the year 1997 as a mint which contained Herbasol that helped breath freshness. The brand has been refreshed from time to time with launch of variants like Chlormint Ice which was a strong mint and Freshfills, a unique liquid-filled mint offering. Though this was a seemingly mundane product proposition,
15

the brand was built around the platform of anytime freshness, rather than being occasion specific. While competitors stressed on relief from irritation in the throat or on masking bad breath, Chlor-mint was the mint for anytime, anywhere consumption. This positioning was reflected in the iconic DOBARA MAT POOCHNA tagline in successive television commercials. The ads for Chlormint reflect a distinct attitude and push the boundaries of what is acceptable advertising. The brand has built a unique place for itself in the consumers mind, so much so that Dobara Mat Poochna is part of everyday parlance among youth.

CHOCOLIEBE

16

Launched in 2006 over the past four years, Chocoliebe is Perfetti Van Melle's premium offering in the clairs segment. It is ball formed caramel chew with delicious chocolate filling inside. The brand is performing well and is one of the largest players in the clairs segment. It operates only in caramel flavor currently. Since 2006 we have built the brand on the premise of a rich chocolate & soft caramel which was implemented by the first communication of PYAR DO. PYAR LO (Give love. Get Love), this thought was communicated through the story of a small brother trying to win the heart of his big brother in pain to get his favorite Chocoliebe from him. The brand grew from strength to strength both in the market and in the consumer mindset. In 2008 with the growing of the clairs segment the idea was to communicate the USP of Chocoliebe that it is non sticky, this thought was communicated through the story of a police cadet who could have become an inspector but failed because he got stuck while eating an clair, the entire thought was based on the insight of an clairs) getting stuck to your teeth due to its product properties of hard outer and less chewy. The communication was based on a platform that said that we are better than an clair.

CREAMFILLS

17

It is a Caramel Candy with a cream filled center. It was launched as a brand extension of alpenliebe as an innovation in 2005 but within four years it has carved its own identity. This brand has been built upon the premise of a Wonderful Surprise which was extended to the iconic baseline KUCH ALAG ACHANAK and the brand grew from strength to strength both in the market and in the consumer mindset. As category of candy had hardly seen any innovation in terms of taste or format, this product offered both a combination of taste and new format of filled candy became an instant hit among the kids. It has no current flavors in the present format but has an extension in the form Xtra a larger candy in the filled format. Xtra has two additional flavors, Coffee and Mango. Creamfills is positioned on surprise where one gets more than expected, as the base line says What a surprise. When launched it was an innovation and the only candy available with a filling inside and till 2009 the positioning was of Kuch Alag Achanak as one does not expect filling inside a candy and this differentiates it from other candy available in the market.

18

HAPPYDENT WAVE

In 2009, first ever, liquid filled whitening gum was launched under the brand name Happydent Wave. It is available in a Cool Fliptop pack, a Blister pack and a mono pack.

HAPPYDENT WHITE

Happydent chewing gum is Perfetti Van Melle's offering in functional gums category. Happydent White contains baking Soda which helps in maintaining natural whiteness; therefore it was positioned as good for teeth gum. Since then, the brand has been spreading sparkling smiles across consumers. It is currently available in two flavours: Mint & Fruit. Happydent is currently positioned on the platform, that it whitens the teeth so much that they can be used as source of light. Happydent brand communication has played a significant role in success of the brand. Clutter breaking Photographer commercial followed by Palace commercial were well accepted by the audience. The Palace commercial swept all creative awards in India and bagged two awards at Cannes. Truly, Happydent is a chewing gum for a sparkling smile JAGMAGA LE, MUSKURA LE.
19

LOLLIPOPS

Alpenliebe one of the early brands under the Perfetti Van Melle stable was initially launched just as a candy. Encouraged by the success if this rich creamy caramel candy, the group launched Alpenliebe lollipop. A strong brand that dared to defy conventional approach to branding is it in the choice of name, the shape and available flavours. The brand name, otherwise a challenge was turned into big differentiator and advantage as it helped create an international image, this at a time when Indians were going crazy about foreign brands and products. The candy, Indias first round shaped candy was extended even to the lollipop. With three tempting flavours of Rich milky caramel, cream strawberry and cola vanilla, the product did more than justice to the flavours owing to real cream as an ingredient. Alpenliebe was a lollipop that lasted long with a great taste that lingered on longer. The brand positioning of Lagey Raho reflected in the communication, not just communicated the product experience but went beyond. It communicated the pleasure of the long lasting lollipop. In the year of launch (2001) Alpenliebe become the market leader with 46% market share, while the category at large was degrowing. Over the last few years the brand has continued to lead the market with over 40% market share. The Brand was supported through above the line communication and simple activation, promotions etc. Maintaining the imagery whilst also making the brand more endearing.

20

MANGOFILLZ

Alpenliebe Mangofillz was launched as a new proposition under the Alpenliebe umbrella, and is a candy with liquid Mango flavored filling inside. The product launch is PVMIs first foray into the sizeable candy category of virgin fruits. This is the first non-cream Alpenliebe candy. Mangofillz has taken forward the overall brand platform of irresistibility while keeping the focus on the mango taste of the product. Kajol, the Alpenliebe brand ambassador, is being brought in to provide a connect with the parent brand and bring in its heritage, while the communication itself remains focused on the product and its own uniqueness, i.e. a pure mango flavored liquid-filled candy.

21

MARBELS

Marbels is a chewy candy that is available in a variety of colors and yummy flavours- Strawberry, Mango, Orange, Banana and Watermelon. Every mouthful of Marbels transports you to a multicolored world of fun and happiness. To further titillate the taste buds; in the year 2004 Perfetti Van Melle introduced Sour Marbels which is available in three mouths watering tangy flavours Tamarind, Green Apple and Orange. As if this wasnt enough over the years Marbels has brought many a smile to the consumer by coming out with exciting consumer promotions.

22

MENTOS

A cult for entire generations of young people, Mentos is known throughout the world as fresh mint. This irresistible round shaped candy is based on an innovative concept crunchy and smooth outside, soft and really fresh inside. Mentos is not only mint, it has an assortment of delicious fruit flavors Strawberry, lime and lemon, orange and ripe mango. Mentos started its journey in India way back in 1999, under the Fresh maker positioning. But the Mentos story starts in 2002, when it was re-launched. Subsequently in 2003, it got an Indianized positioning of Dimaag ki Batti Jala de pertaining to smart thinking. This line has almost become a part of local lingo. A large part of Mentos success is attributed to its advertising, which is funny, exaggerated and immensely memorable.

23

SUGAR FREE

Sugarfree gums like Happydent Protex & Happydent White Xylit contain Xylitol which helps reduce risk of tooth decay. When we eat, the acid level in our mouth drops, creating ideal conditions for bacterial growth. These bacteria result in formation of dental plaque, a thin film of bacteria adhering to the tooth surfaces, which weakens the tooth enamel, causing tooth decay. The consumption of Happydent Sugarfree gums restores the acid level in the mouth to the required level & helps prevent any further tooth decay.

24

CENTER SHOCK

Innovative products that WOW you and are fun to make as well! This extremely sour gum with a sweet heart was launched in India in 2002. Once you got over the Shock, you could taste either the Green Apple or the Peach flavored sweet center.

FRUITTELLA

25

Is it a gum, is it a candy No its FRUITELLA! As juicy as a candy and nearly as chewy as a gum, this juicy chewy fruity treat is and international favorite. Amongst the many flavours, choose your favorite. It comes in three flavors, lime n lemon, orange and strawberry.

STOP NOT

STOP NOT is a completely indigenously developed snack, inspired from the flavours of the Indian kitchen. Made hygienically, using the best raw materials, Stop Not variants have been developed by combining Indian food preferences with the most modern food processing technology.

StopNotGol'z
Stop Not Gol'z is an easy to eat, extra crunchy rings made from rice, gram (besan) and wheat flour. Stop Not
26

Golz is fried in healthy oil and flavored with spices. Stop Not Gol'z is available in uplifting flavours of PEPPY TOMATO and FULL MASALA.

StopNotFofo's
Stop Not Fofo's is a unique shaped, non-fried product made with rice, gram (besan) and wheat flour. Stop Not Fofo's is one of a kind, with the center actually filled with a spiced paste. There is a hint of flavoring on top just to get your taste buds started. Stop Not Fofo's is available in wonderful flavours of MAD MASALA and HAPPY TOMATO.

BIG BABOL FILLY FOLLY

27

A cotton candy cum chewing gum launched in 2010 by Perfetti Van Melle in two flavours Strawberry and fruit.

Perfetti Van Melles products are categorized on the following basis:

Freshness Breath Pleasure Oral care Soothing Health

Freshness

28

Some brands may be important, but others are exclusive and inimitable. There is no doubt that Mentos is one of these, a candy known all over the world as The Fresh maker, a truly unique product concept, thanks to its innovative formula: crunchy and sweet outside, soft and chewy inside. Mentos has skillfully used its most famous flavor traditional fresh mint- as the springboard for continued growth and renewal of flavors and formats, culminating in an extraordinary concept. Customers have always appreciated the sensation of freshness that the chewing gum and candies give. The skillful blending of mint and other flavoring ingredients has created a range of unique, unmatched products.

Breath
Protex successful product was created in Belgium in 1986 through the development of a new concept of mini tablets with a strong, intense mint flavor, with its exclusive, prestigious style. Protex- in tablets or in the brand new chewing gum version- is now present on all continents from Europe to North America and Asia. It is especially well known and loved in the Japanese confectionery market. Todays lifestyle is full of opportunities for social interaction- so being able to rely on cool, fresh breath is vital. That is why Perfetti Van Melle has researched and produced a range of highly innovative products that ensure intense coolness and fresh breath for every occasion.

Pleasure
Alpenliebe with its velvety, natural taste, Alpenliebe bring the sheer enjoyment of eating a candy. Made with natural ingredients like those of homemade candies, Alpenliebe satisfies the desire for taste and wholesomeness of all kinds of consumers from around the world. From its original cream and milk version, Alpenliebe has branched out into a range of new flavor combinations, blending a creamy base with different fruit flavors such as alpenliebe strawberry, alpenliebe creamfills, alpenliebe clairs, etc. Satisfying the desire for pleasure and sweetness experienced from time to time throughout the day was the original purpose of candies and chewing gum.
29

They still provide moments of pleasure to consumers from all walks of life. Perfetti Van Melle products bring innovation and imagination to the market, making them irresistible to young and old alike.

Oral care
Happydent The chewing gum market is the one that has shown the most rapid rate of development over recent years. As a pioneer in this sector, Perfetti Van Melle can now satisfy the demands of consumers increasingly aware of the need to care for their smile, by offering a wide range of specific and effective products for enhanced oral hygiene and dental protection.

Soothing
Thanks to its innovative formula: crunchy and sweet outside, soft and chewy inside. Chlormint has skillfully used its most famous flavor traditional fresh mint- as the springboard for continued growth and renewal of flavors and formats, culminating in an extraordinary concept.

Health
Research has demonstrated that chewing gum and candies can provide health benefits. These products with added vitamins, mineral salts and other active ingredients, meet modern demand for health and quality of life with flavor and effectiveness.

30

ABOUT THE STUDY

PURPOSE AND SCOPE OF STUDY
The study is aimed at the following:

31

The primary objective of the study was to try and enable the company to bring about any changes or improvement in their system of operations by studying competitors in the gums and confectionery segments such that their market penetration deepens and they get a greater market share.

To understand the companys market outreach, its competitors and analyze its method of operation thus coming up with measures that would lead to the expansion of its operation with a wider market share. For achieving the above stated goal, a SWOT Analysis has been done, which can be helpful in identifying the weaknesses and strengths of the product in the market. To map retailers/secondary wholesalers perception of the company and its service. To map consumers perception of the company and its service. To interpret the data and information gathered effectively to be able to give appropriate recommendations. Giving suggestions/recommendations for improving the prevailing system.

The duration of the project was eight weeks wherein one week was for orientation, two weeks for data collection and collation, three weeks for conducting pilot studies, two weeks for data result analysis and presentation. Geographically, the scope of the study is confined to the market in Gurgaon but the strategy suggestion has wide implications considering the homogeneity of urban Indian market. The project given was about enhancing sales of Perfetti products in the institutions. The project was done at MDI GURGAON, ALCHEMIST HOSPITAL, IBM GURGAON, DELOITTE, HOTEL TRIDENT, HOTEL OBEROI, and HOTEL IBIS. These institutions were surveyed and the consumers were asked to fill a questionnaire. These institutional contacts were created by a trainee. It is my privilege to work with such kind of esteemed institutions.

32

MDI (management development institute)which is one of the leading management schools in India has become our prominent customer. The follow-up has been provided to the trainees who were asked to collect orders from these recognized institutions because the main aim of perfetti van melle was to avail their products specially to the youth and the products are being produced keeping in mind the youth itself. Products which were availed to them in the right place and at the right time were as under:

Stop not golz Mentos Happydent white complete(spearmint, peppermint) Happydent xylit blister

Apart from this we have also supplied Perfetti Van Melle products to the hotel chains in Gurgaon also likeHOTEL TRIDENT, HOTEL OBEROI, HOTEL IBIS.

33

The requirements of these hotels were especially hard boiled candies in the form of Alpenliebe caramel handy pack, alpenlibe clairs pouches, chocolibe clairs boxes and huge demands for the Mentos jar which were required especially in the meetings, seminars and conferences. We have also tried to create contacts with schools like Sherwood public school situated in DLF Phase-2 Gurgaon. We have received a nice response from the canteen of the Sherwood public school as they have passed their orders on a regular basis and in handsome quantity. They ordered products mentioned below:
34

 Stop not golz Alpenlibe caramel Alpenlibe clairs Mentos Happydent complete Happydent wave Happydent xylit blister

Our products are also in great demand especially in canteens and cafeterias of BPO (business process outsourcing) like IBM Udyog Vihar, IBM Unitech Cyber Park; deloitte.it was observed that in some canteens chewing gums were not allowed in the office premises. Snacks like stop not golz and candies like mentos, chocolibe clairs were ordered quite nicely on a monthly basis. We have been successful in maintaining our contacts by providing companies products on a timely basis.

35

Last but not the least we are also supplying our products in the cafeteria of ALCHEMIST HOSPITAL.ALCHEMIST HOSPITALS is one of the leading and emerging hospitals in Gurgaon. The cafeteria from alchemist hospital passed its orders especially at the time of their important events like blood donation camp and other successful events also. Snacks and candies were ordered by them at the time of these events. Perfetti Van Melle has tried to deliver their products not only in general trade and modern trade but is also looking forward and trying their best to avail their products in several other institutions and thereby producing higher profits and ultimately serving best to their organization.

36

SALES AND DISTRIBUTION CHANNEL

SALES
A sale is an activity involved in the selling of products or services in return for money or other compensation. It is an act of completion of a commercial activity. The seller - the provider of the goods or services completes a sale in response to an acquisition or to an appropriation or to a request. There follows the passing of title (property or ownership) in the item, and the application and due settlement of a price, the obligation for which arises due to the seller's requirement to pass ownership. Ideally, a seller agrees upon a price at which he willingly parts with ownership of or any claim upon the item. The purchaser, though a party to the sale does not execute the sale, only the seller does that. To be precise the sale completes prior to the payment and gives rise to the obligation of payment. If the seller completes the first two above stages (consent and passing ownership) of the sale prior to settlement of the price, the sale remains valid and gives rise to an obligation to pay.

DISTRIBUTION
It is defined as a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user. A number of alternate 'channels' of distribution may be available:
Distributor, who sells to retailers, Retailer (also called dealer or reseller), who sells to end customers,

Advertisement typically used for consumption goods Distribution channels may not be restricted to physical products from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. process of transfer the products or services from Producer to Customer or end user. There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services - the latter offering anything from televisions through tools. There has also
37

been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas. The factories that are located at the various parts of India use the best quality raw material for the production and packaging of the various categories of goods. They are further supplied to the various godowns depending upon the estimated demand, taste and preferences based on regions across country. The Branch Managers, Area Managers and the Area Executives at the various branches constantly update themselves with the requirements and determine the ECD (estimated consumer demand) at a particular region. The company has a strong distribution system. The ECD is measured and estimated depending upon the collaborative forecasting by the sales force with the dealers. The forecast for production is based on the previous months sale and as soon as the delivery to the warehouse happens further distribution takes place as per the branch office route plans. These wholesalers/CNFs/retailers get a margin of 5 percent from the company and the retailers get a 15days credit to pay back the due amount. Various merchandisers, daily salesmen and delivery men are appointed who have specific markets and routes allotted to them all the 6 days of the week. The distributors operate on credit basis for the retailers and wholesale dealers for order taking system and on cash basis for ready stock system. Supplies are frozen for those outlets which fail to clear their previous dues.

38

Distribution Process
The basic distribution channel follows by Perfetti Van Melle in Institutional Trade is:

Manufacturing Plant

Mother Godown /Warehouse

CFA (Carrying &Forwarding Agent)

Retailer

Distributor

Retailer

Consumer

39

1. MANUFACTURER
Wholesalers/distributors centers are visited by the customer executive (CE) to bring orders and give it to the company. Company manufactures the product and sends required order to the distributor/retailer.

2.WAREHOUSE
Fresh stock is received at the Warehouse.

The quantity received matched with the order placed/purchase invoice.

Then the fresh stock is assembled in such a way that if a person wants to check the stock thoroughly

can count/check it. The fresh stock is arranged according to its manufacturing date. If there is an existing stock of that date then the new stock is also piled with it or else if the manufacturing date of the fresh stock doesnt exist then new stock is made.
This is down in order to follow FIFO method of valuation of stock because the expiry date of the

product is only 12 months. More over the expiry date of the fresh stock is also checked at the time of receiving it. So that no expired product or a carton of it approaching towards expiry date is received. It is very important to be noted that once the box is opened/seal is broken, then company will not take it back. When the receipt bill of the fresh stock is prepared it consists of all the broken or leaked packages in the transport. After that godown shipper make two bills. 1. E R P report, copy-3 2. In-voice report, copy-2 Godown shipper take 1 copy of E R P, in-voice and remaining bills give back to company.

40

 In between of this process driver is the mediator between retailer and company. After delivery of goods

to the retailer, company has a 15-20 days credit policy i.e. retailer will pay back the due amount in 15 days.

3. PRE SALES REPRESENTATIVE (PSR)/ MERCHANDISER

Retailer shops were visited by PSR one day before delivery of goods and the order get punched (i.e. Tax invoice was prepared) on the same day. As well as the stock was also loaded in the vehicles of respective routes. As the stock was already there in the truck, the delivery man along with their respective loader moves out. Again PSR go to market for more orders.

4. DELIVERY MAN
Delivery man delivers stocks to the respective outlets. Delivery man gives stocks on credit but its the responsibility of PSR/ merchandiser to reimburse the money from outlet owner.

5. CUSTOMER EXECUTIVE (CE)

Main responsibility of CE is to take care of outlet and solve their problems. Customer executive decide the schemes to give in market. Customer executive make contract with outlets.

41

DISTRIBUTION OBJECTIVES
Minimize total distribution costs for a given service output
Determine the target segments and the best channels for each segment.

Objectives may vary with product characteristics E.g. perishables, bulky products, non-standard items, products requiring installation & maintenance.

VISIBILITY TOOLS IN RETAIL OUTLETS

Peg hooks Three-tier bins Over The Counter Racks

THE MARKETING MIX-5 PS WITH SPECIAL REFERENCE TO PERFETTI:

PVMI

Product

Price

42

Place

Promotion

PRODUCT
A business needs to consider the products that it produces and the stage of the product life cycle that a product is at. Marketing strategies will vary according to the type of product and its stage in the life cycle. In case of Perfetti Van Melle, in the modern trade, the 168 gm of original Alpenliebe and 170 gm of Chocoliebe Eclairs plus pack very much popular Perfetti Van Melle is even successful in introducing its Alpenliebe Mangofillz in competition with Parles kaccha mango bite, which has acquired a distinctive place among children.

PRICE
Most businesses use a "cost plus" method for setting the prices of their products. This involves determining unit production costs and then adding in a profit margin. However, many other factors are involved. Consider "perceived price" (what you think consumers will be prepared to pay), demand elasticity (is it elastic or inelastic?), competitors' pricing (can you afford to undercut their prices?), pricing objectives (what do you want to achieve the increased market share? increased profits? market leadership? etc.)

PLACE
This generally refers to the physical locations of product sales as well as the methods of distribution. However, it is also considered to be the "place" or "position" in the market of the product; refer to information below. Businesses need to make many decisions related to "place": access, parking, competition, physical location etc.

43

PROMOTION

This refers to the promotion of the product to the target market. This is achieved through a combination of: Advertising: use of electronic and print media. The "reach" (how many people will see the advert), Frequency (how many times will I advertise the product?) and impact of the advertising must also be evaluated. Personal selling: what happens in the "shop", contact between sales people and consumers or customers. Sales promotion: use of gimmicks and incentives e.g. competitions.

This is the most important P of all the Ps. It has to be there in every industry, because without this all the Ps remains meaningless. For an instance, if a person gets up early in the morning and he needs a brush. Assuming he prefers a brand with more bristles and he will ask for the same at the shop but if he wont get that then definitely he will be choosing the one available with the retailer. That means he chooses the one which reaches him first. So, if a business wants to sustain in the market then it must maintain the pace in order to compete and exist in the market.
44

FINDINGS AND ANALYSIS

QUANTITATIVE ANALYSIS AS PER CUSTOMERS FEEDBACK
1) What is the factor that compels you to purchase your favorite category of confectionery?

Here it is observed that out of the 100 people surveyed, 41 percent of them feel it is the quality that matters the most when it comes to the decision of purchase of confectionery and gums.

45

2) Which brand do you generally prefer most?

Here it is observed that 26% percent of the consumers are loyal to the brands of Perfetti Van Melle, but 36% people are influenced by the brand Cadbury and reason behind this is the chocolates offered by them.

46

3) Where do you buy these products?

Grocery shop is the first place where the consumer reaches first to buy the confectionery items, followed by supermarket.

47

4) Have you heard of Perfetti Van Melle?

During the survey it was observed that only 13% of the consumer base knew about the company Perfetti Van Melle, but when they were told about the brand alpenliebe the count increased to 39%.

48

5) What do you like the most about Perfettis products?

49

6) Do you think if more schemes are given to the consumers the probability of the consumption would go up?

50

7) What type of scheme would motivate consumers to purchase confectionery items?

It is also observed that 43 percent of the consumers feel that Sunfeast quality of biscuits is very good followed by its variety. They also feel that if the promotional activities for the same are increased by giving gifts, discount on MRP etc then their probability of their consumption would go up by 71 percent.

51

8) What can be the best packaging material for confectionery products?

52

47 percent of consumer thinks that the traditional packaging is good enough for the product but 39% of the consumer base thinks that if company introduce the product in the form of gift packs then it can attract more customers and can enhance its sale.

53

9) would you like to have chocolate from this brand?

Majority of the consumer base said yes that they would like to have chocolate from this brand. As it is a segment which is liked by everyone in the population.

54

10)

What size of the packet do you prefer most?

55

Here we observed that majority of the population like to have Rs. 50 pack as according to them, the price and quantity are complementary to each other.

56

11)

Which brand you prefer the most in gums category?

In gums segment, majority of the population prefers the brands which are offered by perfetti I.e. it accounts for a total of 76%. Hence it can be inferred from this that in gums section, Perfetti is the market leader among the consumer.

57

MARKET ASSESSMENT AS PER SWOT ANALYSIS

The Indian customers are very price sensitive and they are more cautious when it comes to the purchase of grocery items. Buyers of Confectionery products are sensitive to price among other variables like weight, flavour and ingredients. Already Perfetti products have a huge chain of variants which includes gums and candies which are moderately priced close to other players in the market. Hence, the Price Discount Strategy which is already in use for some of the segments like candies/toffees should also be adopted for the other segments. However, the perception of the consumer needs to be evaluated in the ambit of the price- promotion strategy. The extensive coverage in the electronic media that the brand is pursuing will help create the pull required in marketing parlance and the growing distribution chain will complement it by reaching the product to the end users doorstep. However, advertisement and other consumer promotion should be directed towards the creation of a better image for the brands in the market. Higher disposable incomes and the willingness of consumers to try new brands have attracted a number of players to the food industry, both, at the national & local level and has generated intense activity in the marketplace. In this age of competition it is very essential that one is able to overcome its weaknesses and focus more on its opportunities and enhance its strengths. Thus, retaining a consumer is also a challenge which most of the brands fight for almost every day with their price-promotion techniques and advertising campaigns. Perfetti Van Melle as a company having brand names like Alpenliebe, Happydent and Mentos thus has responsibility of not only making its product positioning and promotional activities effective but it also has to cater to the needs of the retailers and wholesalers by giving them a better margin and other incentives like free offers and gifts so that they are motivated to keep the products and further push it to the prospective customers.

58

QUALITATIVE ANALYSIS
STRENGTHS
1) Innovativeness Perfetti Van Melle with its highly skilled workforce and management has always been able to introduce and initiate new segments into the market which has impressed the people. The launch of products like Alpenliebe Mangofillz, Chocoliebe Eclairs Plus and Fruittella is symbolic of Perfetti Van Melles distinct approach of introducing innovative and differentiated products in a largely undifferentiated market place. The initial offerings from Perfetti Van Melle include an array of products in both confectionery and gum segment. The Alpenliebe offerings comprise of 5 innovative variants and Mentos comes in 4 variants. 2) Marketing techniques Since the company's target audiences are people in the age group of 8-35, the company adopted the internet as a platform to initiate its promotional. It created a webpage on Facebook, which offers free games, downloads and offering consumer to post their comments regarding the products and their suggestions. 3) Quality Perfetti Van Melle has definitely surpassed its competitors by introducing variety of candies/toffees and gums as it has introduced candies and gums in many flavours as compared to its competitors in the market. Perfetti Van Melle being one of the most premiere confectionery giant has always maintained its supreme quality with respect to other players in the market. This company does not believe in compromising its quality over its cost. Thus it tries to maintain a cost that is equivalent to the competitors price with quality which is better that is being provided by them. 4) The financial muscle of PVMI Finances are the back bone of any business. Its importance is paramount in this fiercely competitive market. This implies that, PVM thus has the financial muscle to introduce and sustain long and endure costly advertisements and promotion campaigns.

59

WEAKENESSES 1) Supply chain issue Due to the prolonged time taken in the order processing (purchase order) and supply of the stock from the manufacturing units at NEEDS and SRS is an issue of delay of stocks by 2- 3 months to the distributor/CFA point prevails. The process of distribution takes another month from the CFA/distributors outlet to the market and thus the retailers and wholesalers are left with just few months to complete the sale. This generally does not happen and the rate of damage due to expiry becomes high at certain times. This is one of the major reasons as to why the brand is not able to compete with its competitors successfully to some extent. 2) Lesser Brand Preference By Brand image, we understand the perceptions and beliefs held by consumers, as reflected in associations held in consumer memory. Market image defines the demand of the Brand to large extent. 3) Lesser Grammage It has been observed that consumers are often very fussy about the grammage content especially when it comes to the consumption of confectionery items. They give a lot of emphasis over the quantity besides the quality and taste. PVM can definitely boast about its supreme taste and quality but its grammage content is less as compared to other brands. This is acting as a hindrance to its growth as consumers are switching to other brands that are giving them better value for their money. 4) Packaging Quantity of Big Babol filly folly and Alpenliebe stick which are sold wholesale in Big Bazaar is needs to be reduced to half so that the consumer can afford it. As it is observed that the sale of these products in institutional such as mdi Gurgaon and is quite satisfactory because they are sold in loose.

60

OPPORTUNITIES
1) Fast Lifestyle
The kind of lifestyle that the youth is living today is very fast. There are loads of opportunities and avenues that they are exploring and are adopting. With such a kind of life they are dependent on consumption of food that is available readily and satisfies their appetite for some time. Chocolate is the segment in confectionery industry which is liked by them the most. So the PVM must come up with this segment.

2) A growing relationship with customer and customer retention

Nowadays a good relation with customer is very important for organization. Sales are totally dependent on the relationship with the customers. Customer's retention is also a major aspect for a growing business. With the kinds of effort that the marketing team of PVM has put in especially using the internet as a medium is appreciated but then there are other avenues to which can be harped upon to enhance its relationship building.

3) Provide competition to other companies

The major market leader in the gums and confectionery industry is Wrigley which is a multinational company. The Indian consumer is very emotional and thus they have always preferred commodities that are closer to home. Thus, the company should identify and capture this opportunity and work accordingly.

4) A growing emphasis on global thinking and local marketing planning

Companies are increasing by pursuing market beyond their borders. When they enter other countries they follow the tradition of that country and also they make plan for local market that, which type of product has more demand and how can it run in the market. Perfetti Van Melles products can be introduced to other markets globally with its unique USP of having variants of local flavours of that country. It could also get into a joint venture with a big food brands which can be a platform for the brand to increase its acceptability globally.
61

THREATS
1) Product/Market threats
If there could be many opportunities, there could be many threats in the market or with the product. One of the primary product threats is the lack of any sort of product differentiation. The lack of it can be the death knell for the product. Not only does the brand stand to lose in the face of the established competitors but also stands to lose against innovative entrepreneurial ventures.

2) Growing customer bargaining power

Today customers are very much into bargaining. So they are always in the looks out for offers and schemes that give them value for money. Especially in the segment for gums and confectionery they give preference to products that provide them with a higher grammage and some free gifts.

3) Huge Competition and options to the customer

When it comes to the market players in the gums and confectionery market it is dominated by Wrigley and Cadbury followed by other players like Lotte and a few local players. Perfetti Van Melle still has a long way to go keeping in mind the competitive scenario. The competitors have been successful in positioning their products in the right manner to the right kind of consumer segment. Like Cadbury, heavily concentrates over the teenagers and the youth whereas Orbit and Bubbaloo are known for their high demand amongst the children especially because of their schemes and special gifts that they have in their packs.

4) Health Conscious Consumer

Nowadays people have become very health conscious with the outbreak of so many diseases. They try to follow a strict regime of diet and generally avoid food that could be affecting their health. Confectionery items generally have very high calorie content as well as they are considered as products that affect gums and leads

62

to tooth decay. So it is thus challenging for the confectionery manufacturing units to convince their consumers to continue their consumption in spite of their thoughts.

5) Cost escalation
Commodity inflation continues to have a significant impact on input cost and this inflationary pressure has put industry profits under pressure so until and unless each and every product as a brand are able to make ample profits, from its cost to the company, it would become difficult for the company to survive with the brand.

STRENGTHS Innovativeness

WEAKNESSES

Supply chain issue

Lesser brand preference

Quality Marketing techniques The financial muscle of PVMI

OPPURTUNITIES

Lesser grammage Packaging

THREATS

Fast life style Growing relation with customer and customer

retention

Product/market threats Price competition leads to lower margin. Growing customer bargaining powers Competition and options to the customers. Health Conscious Consumer Trends Cost escalation

Provide competition to other company. A growing emphasis on global thinking and

local marketing planning

63

FINDINGS
Lack of well-directed promotional activities Imbalance between price and quantity( for few products)
Market segmentation should have been done more effectively

Lack of quality salesmen Lack of loyalty programs Delay in the supply and high rate of damage Lack of delivery van Improper display of products Lack of stands in stores
Packaging

64

CONCLUSION
Perfetti Van Melle while competing for the highest market share in the fiercely competitive confectionery and gum market, needs to develop a foresight by identifying how the market will or can be encouraged to develop. Considering the growth of Perfetti Van Melle in the confectionery and gum industry vis--vis the growth rate of the product as a whole, there is ample evidence that the company has the potential to become the market leader if the threats and weaknesses are addressed in proper perspective. This also requires an effective marketing strategy with aggressive marketing and rigorous follow up. There is a greater need to understand the retailer behaviour considering them as a team working for the company may help them to be attached to the company. The part of the challenge is to improve and enhance the productivity to absorb inflation in the input cost to the highest possible extent and make brands available for consumers at affordable prices. Thus focus is on improving productivity, eliminating cost disadvantages and cutting non-value adding activities to secure profitable growth. While making a product a SKU (Stock Keeping Unit) of the shop, retailers think about the GMROI (Gross Margin Return on Investment) and they promote the brand which provides them highest. They expect return in the form of profit margin, company schemes, window display and references for the shop. Among these, company schemes make the differences and are the highest source of motivation after profit margin.

65

Retailing demands a constant push from the company. Marketers thus need to use advertising and brand building strategies to address the discerning buyers and retail push to in different buyers. The manufacturer should understand consumer behaviour because retailers can't help quality and price.

66

RECOMMENDATIONS
1) PROMOTIONAL ACTIVITIES
To put things to proper perspective, it is widely considered in management literature that promotional expenditure is used most effectively when it is addressed directly to the consumer. Although there are occasions when elements in the distribution chain, particularly the trade, in a manner designed to increase sales, need to be further motivated to present the brand and the brands offerings to the consumer. However, the retailer, more often than not refused to place further orders citing the poor consumer demand for the brand. It can be inferred from here that a great deal of money is wasted on a promotion activity which has achieved the reverse of what has been intended and might prove harmful to the brand, and affect negatively the consumer and distributors perception of the price/value relationship. The understanding arrived at, from the insight gained through interaction with the distribution system, indicates that there needs to be a change in the strategy; and the pressures and stimuli applied at the present are not addressing the requirements for meeting the brands trade objectives. Ideally, the brand should look for a consumer promotion of such strength and originality that the sales force will achieve the trade objectives without the need of such massive trade promotions. In the following section a few suggestions for trade promotion and consumer promotion have been detailed: Giving gifts and schemes to the retailers and the wholesalers- for the order of a specific quantity of a particular product. Even small gifts like mini radios, speakers, parker ball pen can motivate the Retailers/wholesalers to increase their order.

CONSUMER PROMOTION:
Free gifts for children, quiz and mini games on the cover of the packs, free sampling of new variants can be given. For every purchase of a product which is priced between Rs. 10 to 15, the customer can get a free sample of 2 units of a variant introduced recently.

67

Similarly, for every pack of Rs. 30 of Happydent/Protex/Mentos, a cartoon character tattoo or a small wiz card, depending upon the variant, can be given with the pack. This will not only increase the sales of Rs. 30 pack it would also lead to a greater awareness of all the other variants among consumer.

OTHER CONSUMER PROMOS Prize competitions: on pack and with questions related to knowledge of suppliers goods can be used to
educate consumers on product features and offers.

By the use of sponsorship: Sponsoring social causes or events can help push sales by inspiring the sales
force, making them proud and providing extra talking points in building better customer relation.

2) BALANCE BETWEEN PRICE AND QUANTITY

Company should maintain a balance between its price and quantity as compared to its competitors. For instance, if a consumer is going to make a purchase of these items, he/she will definitely compare the product with other products in the same category.

3) MARKET SEGMENTATION
It has been observed during the report making process that the demand can be segmented into 3 categories that can be very promising to the company: Children Diet/Health conscious Working class Depending upon these three categories the company should come up with innovative variants with aggressive pricing policies so that the market penetration of Perfetti Van Melle increases in comparison to the other marker players.

4) QUALITY SALESMEN
A good salesman is one who understands the needs of the consumers and effectively through strong communication skills is able to convince and position the product in front of the consumer. The salesmen can be
68

motivated to perform better by giving them a better salary structure, more frequent incentives and interdepartmental productivity competitions.

5) LOYALTY PROGRAMS
Loyalty programs should be introduced in the super value and key outlets with paid displays and banners. This kind of program can only be initiated if the retailer/wholesaler is motivated to become keep the products of Perfetti Van Melle by giving them better margins and thus enhancing the consumer demand. Such kind of paid displays at the super value stores not only increases the visibility of the various categories of the product it also enhances its sales.

6) OVERCOMING SUPPLY ISSUE AND CONTROLLING DAMAGE

The company should immediately take into notice that the delay in the supply of the stock from the manufacturing unit to the distributor point is overcome. If timely delivery of stock takes place most of the issue related to products would be solved and their sales pitch would go high. The distributors who are not able to cover particular areas should be given assistance from the company and the main objective of the company should be to enhance its market reach and market penetration. If the issue with the supply chain is resolved then automatically the rate of damage would also go down. Special crates/racks should be given by the company to the distributor such that rodents are not able to damage the products. This is especially important for the products which comes in pouches such as alpenliebe, Mentos, Eclairs, etc. as its open displays and racks lead to rat bites which need to be checked immediately.

7) DELIVERY VAN
To make the distribution system efficient, the distributors should start extra delivery vans on his routes, so that one delivery van can cover its area fully and efficiently.

8) IMPROPER DISPLAY OF PRODUCTS

The products in the category should be displayed properly. The products should be displayed according to their date of manufacturing i.e. the products should be arranged in a FIFO manner.

9) LACK OF STANDS/HOOKS IN STORES

69

For the proper display of companys products, the company should provide enough stands/hooks to the stores, so that the products can be displayed in all the respective stores and accordingly the sales can be enhanced.

10) PACKAGING
Consumer gets attracted to a product which is well-packed, if the packaging is not proper than the consumer will not buy the product which in turn leads to a decline in the companys sale.

LIMITATIONS OF THE STUDY

During the project period, there were various factors that contributed to limit the scope of the study. The major limitations and constraints are listed below: Some of the wholesalers and retailers could not provide required data of their profit margins, which affected the primary data and the subsequent analysis. The limited time allocated for the collection of the data was a severe constraint and again affected the primary data collection. The stores selected in and around Gurgaon were not sufficient to represent the diverse and the varied Gurgaon market and the sample The varying schemes of trade promotion offered by competitors, affected the feasibility of the study of trade promotions in a comparative scale. Results obtained on analysis of competitors distributors information may not be comprehensive as the survey conducted was of limited sample size. A potential account couldnt be developed up on account of holidays in the university & time constraint.

70

Bibliography:

www.perfetti van melle,in Philip kotler(marketing research) www.wikipedia.in

71

1. Luck David J. and Rubin Ronald S., Marketing Research, Prentice Hall of India Private Limited, Seventh Edition. 2. Saxena Ranjan, Marketing Management, Tat McGraw Hill, Publishing Company Limited, Second Edition.

72

73