Project Report submitted to Symbiosis Institute of Business Management, Bengaluru in partial fulfilment of the course Summer Internship Programme for the award of the degree of Master of Business Administration
Submitted By
Students Name: PRN:
Under the guidance of (Name & Designation of Faculty guide)
SYMBIOSIS INSTITUTE OF BUSINESS MANAGEMENT, BENGALURU 95/1 & 95/2, Electronic City Phase-1, Hosur Road, Bengaluru 560100
Certificate
This is to certify that Mr/Ms.________ of MBA (2013-15 Batch) of Symbiosis Institute of Business Management, Bengaluru has done the project entitled __________ under my guidance.
Signature of the faculty guide Name: Designation: Date:
DECLARATION
I hereby declare that the project work submitted by me entitled Project Title done during my Summer Internship Program (SIP) is submitted as a partial fulfillment of the requirement of MBA program at Symbiosis Institute of Business Management, Bengaluru.
Project Details: Project Title:___ In depth analysis of the emerging markets in India with respect to the united biscuits Company: _UNITED BISCUITS Company guide name : ______________________________________________ Faculty guide :__________________________________________
Place: Name Date: PRN
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0niteu Biscuit, a 0K baseu piivate limiteu company, has enteieu the Rs.1u,uuu cioies woith Inuian Biscuit Naiket in 2uu9. While they iank no. 2 in the woilu biscuit maiket, they aie tiying to uevelop a fiim holu in Inuia thiough theii flagship bianu Ncvitie's - best known foi its uigestive biscuits.
0B has set up its heau office in Belhi with iegional offices in Numbai, Chanuigaih anu Bangaloie in the South. It not only maikets its biscuits but unlike biggies like Biitannia, Paile & ITC piouuces them in theii own factoiy at Kalamb (BP) too.
Since its entiy in 2uu9, 0B has captuieu a laige shaie of the uigestive biscuit maiket giving a tough fight to its closest competitoi Biitannia Nutiichoice. While 0B's coie focus is on its uigestive biscuits & piemium cookies (Bobnobs & Fiuit Bake), it also has a iange of othei biscuits - Naiie, cieam, buttei & cashew cookies etc that enables 0B to compete neck & neck with the otheis in the maiket.
In the FNCu space, stock (biscuits in this case) is solu thiough S key maikets:
1. uT - ueneial Tiaue (Eg. Kiianawalas) 2. NT - Nouein Tiaue (Eg. Big Bazaai, B-Nait) S. Institutional - Coipoiate Emeiging Channels (Eg. B0RECA, CSB, CPC, Coipoiate Phaimaceutical uifting, Railway, E-commeice etc) 0B's Numbai piesence in uT & NT has been significantly built in the last few yeais. Bowevei, it has just begun actively exploiing the Institutional Emeiging Channels maiket since the last few months.
INDUSTRY PROFILE: BISCUIT INDUSTRY India Biscuits Industry is the largest among all the food industries. India is known to be the second largest manufacturer of biscuits, the first being USA. It is classified under two sectors: organized and unorganized. The size of the biscuit industry is estimated to be about 1.95 million tonnes valued at Rs. 68.6 billion of which organized sector produces about 57% of branded biscuits in volume terms and 64% in value terms. It has a turnover of around Rs.3000 crores. In biscuit category we have three very large players Parle, Britannia and Sunfeast. Besides, there are about 50 medium players and about 2500 small scale units. In the unorganized sectors we have over 30000 small, very small and tiny units spread all over the country. Our bakery industry thus is quite big in that sense. Biscuit industry was also reserved for small scale earlier. It was de-reserved in 1997-98. Since then the industry is growing at a rate of over 10 per cent. Post de-reservation many local and regional players have started producing for Parle or Britannia as franchised units. Glucose and Marie are two varieties of biscuits which represent the largest segments. India Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for ready made food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food product for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits. Even, the rural sector consumes around 55 percent of the biscuits in the bakery products. The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of the entire bakery production. Few years back, large scale bakery manufacturers like Cadbury, Nestle, and Brooke bond tried to trade in the biscuit industry but couldn't hit the market because of the local companies that produced only biscuits. The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully. Biscuit consumption per capita in India has grown to 2.1kg per capita in comparison to 10kg per capita consumption in USA , UK .While the growth rate has been stagnating during last 4 years, it has picked up momentum during the 2007-08 and the first quarter of 2008-09 mainly on account of exemption from Central Excise Duty on biscuits with MRP up to INR 100 per kg, as per Union Budget for 2007-08. Segments:
The organized and unorganized sector of the biscuit industry is in the proportion of 70%:30% ratio.
! EXPORTS of Biscuit was 14% of the annual production during the year 2010- 11 which declined to around 12.5% in 2011-12.
! IMPORTS of biscuits into India (mainly high end products) has not shown any significant growth during the last five years and has not affected production/sales by the Indian Biscuit industry.
Annual growth in biscuit market
While the growth rate has been stagnating during last 4 years, it picked up momentum during the 2008-09 mainly on account of exemption from Central Excise Duty on biscuits with MRP up to Rs.100/per kg, as per Union Budget for 2007-08. However growth further declined from 2009-10 to 2011-12 and the first half of 2012-13.
Annual Production:
The organized biscuit manufacturing industrys annual production figures are given below:
Pattern of Biscuit Consumption (On Zonal basis) in the country are as below:
Northern Zone - 25% Western Zone - 23% Southern Zone - 24% East and North East Zone - 28% (Including N. East) u 2 4 6 8 1u 12 14 16 IMPORTANT BRANDS PITCHED AGAINST EACH OTHER OR PRODUCT COMPARISION
IMPORTANT BRANDS PITCHED AGAINST EACH OTHER OR PRODUCT COMPARISION
Major Market Share Holders Organized Sector
C DE ?@AF8< >G@A8 HA@IJ K!>8 L=DM;?8N PARLE BRITANNIE PRIYA u0LB ITC
Market share - Region wise: Market share of the industry in India as per region
Marie and Glucose 50% sweet, crackers , cream ,milk 50% ?)13%' ,()1% &%"%'1)'-."OP.&*"Q K-,%
;AH@I A;A@M 8S%-7S% 6S%-SS%
RDI8 C :DI<A!H;<!DI N0RTB Z0NE 2S% WEST Z0NE 2S% EAST Z0NE 28% S00TB Z0NE 24%
?)13%' >()1% S &1.$65' 4-,%
Company analysis ;"-'%$ H-,56-', S <(% G%1-')2%
0niteu Biscuits (0B) is a 0.K baseu piivate limiteu company 0B is the seconu laigest biscuit manufactuiei in the woilu The total 0K Biscuits maiket is woith 2bn. The 0B biscuits poitfolio is iesponsible foi moie than SS% of total biscuit sales anu incluues top peifoiming bianus like the Ncvitie's iange anu Ncvitie's }affa Cakes. It is the leauei in the 0K biscuit maiket anu holu the No. 2 position in snacks Ncvitie's biscuits have been enjoyeu the woilu ovei since 18Su The 1 st evei oiiginal uigestive was bakeu in 1892 0niteu Biscuits Inteinational (0BI) ieaches 1uS countiies woiluwiue.
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Foi ovei a 1uu yeais the Ncvitie's Bigestive has iemaineu a fiim favouiite-the highest selling bianu in the eveiyuay biscuit segment. 0vei 71 million packets of Ncvitie's Chocolate Bigestives aie eaten eveiy yeai. Range incluues:
1. Ncvitie's Bigestive 2. Ncvitie's Baik Chocolate Bigestive S. Ncvitie's Nilk Chocolate Bigestive 4. Ncvitie's Caiamel Bigestive
;"-'%$ H-,56-', !"$-)
In 2uu9, 0niteu Biscuits enteieu the Inuian maiket with its flagship bianu Ncvitie's 0B set up its veiy own manufactuiing facility at KalaAmb, Bimachal Piauesh. 0ne of the few biscuit companies to stait ventuies fiom its own factoiy. Nost othei biscuit bianus in Inuia have S iu paity manufactuiing. The 0SP of Ncvitie's is its use of wholesome ingieuients In one yeai, the factoiy acquiieu high class technological capabilities - which ensuies best in class quality - BACCP ceitifieu
! mcvities aie enjoyeu all ovei the woilu snice 18Su ! The fiist evei uigestive biscuits in the woilu 18SS ! Bakeu with the peifection, mcvities biscuits aie maue with the finest anu whole some ingiegent. ! They have theie piesence ovei 1uu countiies. ! 0B in inuia has staiteu in the yeai 2u1u.
Najoi bianus
Piouuct 0sp
! uoouness of whole anu wheat ! The oiiginal high fibei uigestive ! N0 tians fats ! No aitifical colouis anu flavouis
! 0ats foi healthy heait ! Whole weat foi uigestive health ! uoouness of natuial honey ! Zeio cholestiol ! No tians facts
! Loaueu with exoit meuuitaiiain sweeta ! The goouness of oats ! Naue with whole wheat
! Simply butteilicious ! ! Beclious cookies maue with ieal buttei ! Nelts in mouth ! Rich in calcium ! No tains fats
! Cashew in eciy bite ! Beclious cookie maue with exotic cashews ! uoouness of natuial piotiens ! No tans fats
! Bouble choclaty mazza ! No auueu piesevaties ! No aiitifical coluis ! No cholestiol
Intiouuction to the pioject Title of the Pioject: In uepth analysis of the emeiging maikets in Inuia with iespect to the uniteu biscuits.
<(% ?-,,-." >')'%0%"' The focus of this pioject is to exploie the scope foi Ncvitie's in Institution Emeiging Channels maiket with iespect to: Cential Stoies Bepaitment (CSB) Cential Police Canteens (CPC) Railways >(.1' '%10 .7W%5'-U%V To biiefly unueistanu how the Institution as a channel functions foi 0B in Byueiabau within one month To builu contacts that can help geneiate leaus foi sales in hyueiabau uuiing the two months To obseive the vaiieu customei & consumei behaviouis with iespect to Institutional consumption M."2 <%10 D7W%5'-U%,V To builu the bianu Ncvitie's thiough inuustiy inteiaction To suggest piomotional activities & go-to-maiket tactics that can inuuce tiial of Ncvitie's biscuits with iespect to Institutional consumption Chapter 2 LITERATURE REVIEW 1) United Biscuits makes India entry Ratna Bhushan & Chaitali Chakravarty, ET Bureau Apr 13, 2009, 01.47am IST NEW DELHI: UK'S United Biscuits, the world's third-largest biscuit company, is exploring manufacturing and marketing opportunities to tap the Rs 6,000-crore-plus organized biscuits market in India. The biscuits and snacks maker with estimated revenues of 1.1 billion ($1.6 billion), which owns brands such as McVitie's, Jacobs, Skips and Hula Hoops, is in exploratory talks with many biscuit companies, including Parle Products, owned by Sharad and Arup Chauhan, said a person familiar with the development.
2) Profits up for the united biscuits ahead of the snacks sale Profits improved by almost 5% at united biscuits in the past year, despite the cost of raw materials continuing to climb. Sales were up 5.5% for the year of 1.2 billion. Meanwhile profits grew by4.7% to 156.6m.
3) A royally good reason to celebrate with McVities Date: 17-05-2013 ( media releases )
United Biscuits (UBUK), is giving retailers good reason to celebrate in 2013 with the launch of its McVities limited edition Celebration Tin. As Britain gets set for yet another historic year of Royal occasions, the limited edition tin will make the perfect treat to share with family and friends during the celebrations and boost summer sales for retailers. The McVities Celebration Biscuit Selection includes a delicious assortment of plain, chocolate, creams and jam McVities biscuits, so there is something for everyone to enjoy. With a striking Union flag design, the eye-catching tin has great stand out on shelf and provides the perfect keepsake to remember the royal occasions for 2013. The 475g tin will be available from late May with a MRRP of 5.
4) Rebecca Salt appointed to lead UB Global Communication (corporate release) Date: 30-04-2014
United Biscuits (UB), a global manufacturer of snacks, biscuits and cakes, is pleased to announce the appointment of Rebecca Salt to the newly created role of Chief Communications Adviser. Reporting to United Biscuits CEO Martin Glenn, the role includes responsibility for the Groups global external and internal communications activities. We are absolutely delighted that Rebecca has joined our executive leadership team at this critical point in our growth plans for the business, commented Martin Glenn, CEO United Biscuits. Communications will play a core role in supporting the business as we reinvigorate the biscuit market both at home and abroad. She has an excellent track record of transforming and leading communications functions for large international businesses, and brings a wealth of experience across stakeholder engagement, corporate reputation and issues management. Prior to joining United Biscuits Rebecca Salt was Group Communications Director at FTSE 250 construction firm Balfour Beatty.
5) United Biscuits returns to classic recipe for McVitie' s Digestives Date: 23-12-2013
United Biscuits has announced that, following consumer feedback, it is returning to the classic recipe for its production of McVitie's Digestives, from February 2014. The McVitie's Digestive biscuit recipe was changed in two stages in 2009 and 2010, removing sustainable palm oil and replacing it with the reduced saturated fat sunflower oil. However, some consumers have fed back that they missed the taste, texture and dunkability of the classic recipe. United Biscuits' decision to revert back to classic recipe is driven by the desire to deliver the best possible taste experience for consumers. The company continues to offer consumer choice, however, as those seeking a lower saturated alternative have the option of buying McVitie's Digestive Light, which has the same saturated fat content as (and 30% less total fat than) the current McVitie's Digestives recipe. McVitie's Chocolate Digestives are unaffected, as this recipe has not change
RESEARCH METHOLODGY In order to gain insight into the market & its practices, both primary & secondary research methodologies were used. Secondary research was essentially used to understand the landscape of the Indian Biscuit Market while majority of the observations & learning were derived from primary research.
Primary Research Methodologies a) Observation b) Personal Interviews with the stock keepers, managers , c) Personal Market Visits.
Areas of Primary Research a) Railway stations south indian central railway (secundrabad ) kachiguda, narayanguda , necklace road b) Corporate/ Pharma Gifting Welcome Gifting ( Goregaon), creating cold calls with the Dr reddys lab c) CPC d) CSD - 83 cdc canteens e) UB Stockist points f) UB Depot g) Cross promotional activities with the suitaiable companies .
Area of Observations & Learnings a) Purchase behaviour in different areas Railway, CPC, CSD etc b) Varied scheme Trade & Consumer promotions & response to them c) Primary discussion during cold calls d) Understanding negotiations e) Procedures of purchase f) UBs dispatch & delivery at stockist points g) Collection in institutions h) UBs C&F working i) Challenges in EC Railways, CPC, CSD, j) Identifying & generating contacts that can be used to drive institutional sales
Secondary Research sources a) Orientation A formal orientation conducted by UB gave a brief idea about the landscape & UBs hold of the biscuit market. b) Articles in Newspapers c) Online articles d) Official Websites e) Industry Reports
Limitations of the study
Chapter 3 ACTUAL STUDY
FNCu sales take place in S paits: a) Piimaiy (when stockist places oiuei to 0B) - Banuleu by Sales team b) Seconuaiy (when uTNT Institutional outlets place oiuei to stockist) - Banuleu by Sales Team & stockist c) Teitiaiy 0ff-take (when the enu consumei buys the biscuits fiom uTNT etc) - Banules by Sales & Naiketing Team
Key Chaiacteiistics: In Institutional Emeiging Channels, stock is puichaseu by institutions eithei foi fuithei sale (teitiaiy) oi foi uiiect consumption. Piimaiy sale is usually = Seconuaiy Sale i.e. the oiueis we get foi the stockist ieflect the level of P0s the stockist will place with us. Chaiacteiiseu by laige volumes of puichase as compaieu to uT & sometime even NT. The time foi conveiting a leau is typically longei. Bowevei, once a ielationship is built, iepeat sales become a lot easiei. Bence, less manpowei iequiieu In tuin, less cost of making the sale Piimaiy Sales Seconuaiy Sales Teitiaiy Sales The collection peiiou is typically longei - one month, bill-to-bill system etc Bence, neeu foi a stockist who keep his funus investeu & takes onus of collection Finuing the uecision makei takes time, expeiience & contacts 0nce contact is maue, Su% uepenus on quality, bianu awaieness, consumei iesponse & Su% on maigins
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Introduction
The Canteen Stores Department, abbreiviated to CSD, is a solely own Govt of India Enterprises under Indian Ministry of Defence. Its Head office is located at Adelphi 119 MK Road Mumbai-400020 and has its Depot Sub-Depots in all major military bases operated by the Indian Armed Forces. CSD sells a wide variety of products like household provisions, kitchen appliances, alcoholic drinks, cars, sports equipment. Though originally meant exclusively for active and retired members of the Armed Forces personnel (defined as Troops) it is slowly and steadily being expanded to include GREF, NCC Units at Group HQ level, TA units, CDA's staff, Indian Ordnance Factories, Embarkation HQs, Civilians paid from Defence estimates as well as civilians paid out of civil estimates and Paramilitary forces under operational/administrative control of the Army civilian govt employees. Generally, these goods are procured by CSD in bulk, and sold at concessional rates, compared with retail prices. A huge profit is earned by the Canteen Stores Department.
D7,%1U)'-.", Coveis aimy, aiifoice, navy & NCC (all unuei Ninistiy of Befence) CSB oiiginally staiteu to pioviue subsiuizeu supply to families Inuian Befense seivices 0peiations fiom secunuiabau Apply - Inspect - Registei system to supply to CSB CSB sales exempt fiom excise Each SK0 is iegisteieu at a paiticulai iate aftei negotiations o Eg. NRP 1uu & uiscount SS% - iegisteieu at Rs. 6S o This is ieneweu once a yeai o If NRP incieases in the meantime, no change in iegisteieu piice Theie aie seveial 0nit Run Canteens unuei a Bepot The uepot gives the P0 1uu% Fill iate manuatoiy veiy laige volumes of sales 0RCs uo not give oiueis, they place uemanu foi stock at uepots 0iueiing & Beliveiy in S methou: o Base uepot - base 0iueiing, base Supply o Base 0iueiing, Local Supply o Local 0iueiing, local Supply If the uemanu of 0RCs not met uue 'stock out' it iesults in 'uenial' to 0RCs Theie aie auvantages & uisauvantages of uenial o Auvantage - iesults in incieaseu piimaiy sales at uepot level o Bisauvantage - in 0RC is not expecting the uenial, they iely only of youi supply. Theiefoie, uue to the uenial they have no stock to sell. This tuins them off. :()**%"2%,V Nust inuuce tiial of Ncvitie's ueneiate uemanus at 0RC level Push foi uemanus such that a small size of uenial occuis to ensuie inciease in piimaiy sale at uepot Bowevei, must ensuie that the uenials uo not iesult in loweiing of 0RC confiuence oi uamaging ielationship Theiefoie, astute communication is key 0fficials iank sensitive uuiing inteiaction
:."'1-76'-.",V visit to CSB canteens Peisonal Inteiaction with 0RC peisonnel to unueistanu consumption Intiouuceu new sku's to the company
C0NTRIB0TI0NS: -
CENTRAL P0LICE CANTEENS
As a measure of welfare for the serving and retired CAPFs (BSF, CRPF, CISF, ITBP, SSB and Assam Rifles) personnel, the Ministry of Home Affairs has set up the Central Police Canteen System that came into existence on 26th Sept 2006. As of now we have 126 Master Canteen which act as Distribution Centre and 1042 Subsidiary Canteen which sells products to our troops and families. Like other products CPC has also registered two wheeler and four wheeler firms to provide vehicles to own troops at cheaper rates. Later on, Central Police Canteen facilities has also been extended to verious departments under MHA personnel and other central security agencies personnel wiz RPF, I.B, SPG, NCRB,NIA and all State Police Organizations.
:()1)5'%1-,'-5,V Coveis - BSF,SSB,CISF,CRPF, RAF, IB, ITBP 144 Nastei Canteens in Inuia 0nuei each Nastei Canteen theie aie 0nit Run Canteens (0RCs) Rate contiact excluues vAT (as vAT is state specific) 0nlike CSB, 1uu% fill iate not manuatoiy Local oiueiing & local supply
D7,%1U)'-.", X :()**%"2%,V veiy similai to a NT outlet a stanu-alone like Apna Bazaai Busiest uays - Satuiuay & Sunuay 0nlike NT, no piomotei piesence Lots of potential foi visibility CPC peculiai customeis Customeis associate Ncvitie's only with Bigestive Biscuits 0ui bianu seen as moie piemium & hence fewei tiials
:."'1-76'-.",V visit to CPC canteens Peisonal Inteiaction with 0RC peisonnel to unueistanu consumption Pusheu foi bettei facing thiough visits
RAILWAYS secunderabad INTRODUCTION Secunderabad Division is the most important Division of South Central Railway and ranks amongst the top five divisions of Indian Railways. The present day Secunderabad Division takes its roots from erstwhile Nizam State Railway, which was established in 1869. The Wadi-Secunderabad line was built with Nizam's finance became part of Nizam Guaranteed State Railway. It was extended up to Warangal in 1886. It carried 64 million tonnes of freight and 123 millions of passengers during the year 2011-12. In other words it contributes over 64% of originating loading and over 35% of passenger traffic of South Central Railway. Gross earnings of the Division during the Year 2011-12 stood at Rs. 3958 Cr. A dedicated work force of 22,178 employees and a jurisdictional spread of 1311 route Kilo meters extending into the three states of Andhra Pradesh, Karnataka and Maharashtra & earnings Rs 3958 Cr speak for themselves about the eminent position of Secunderabad Division not only on South Central Railway but also on the Indian Railways. During the current financial year (2012-13) till June'2012 end this Division carried 32.14 millions of passengers, 17.48 MT of freight & gross earnings stood at Rs. 1264.02 Cr. F%+ E8@<;A8> Yeaily stall contiacts given on the basis of tenueis Najoi Playeis o Biitannia o Paile o ITC Naigins: o Bistiibutoi - S% o Canteen Stall - 2S% Two types of Stalls
o Noveable Tiolleys foi long-uistance tiains - alloweu to move between specific platfoims o Immoveable stall at local stations & at CST Biscuit Stock woith o Noveable (Tiolleys) - Rs. 1uuu- appiox o Immoveable - Between Rs 2uuu - 6,uuu-
D7,%1U)'-.",V Tenuing change is a big pioblem Limitation of time & Availability of change venuois piefei selling SK0s of Rs. 1u & Rs. 2u Reluctance to sell ouuly piiceu SK0s Wiue iange of biscuits available - fiom Paile u to Chocolate Fantasy Biscuits typically uisplayeu outsiue Consumeis look at the uisplay befoie making theii pick Type of biscuits consumeu impacteu by seasons (Noie savouiy biscuits in the monsoon) Savvy consumeis o Check expiiy uate - Refuse to buy even soon to be expiieu biscuits o Check NRP - Refuse to pay anything moie than NRP Nost piefeiieu by: o SEC A & SEC B - Cieam Tieat o SEC C & SEC B - Paile u vaiieu customeis - vaiieu ciiteiia foi puichase o Some piice conscious - want the laigest SK0 at the lowest piice (Paile - u) o Some ask foi "1u ka biscuit" o Some willing to spenu moie (Chocolate Fantasy) Pack Size uepenus on how long the jouiney is Peak Bouis - Evening (12 hi. span most tiains uepait) veiy little time spent with consumeis Stockist plays big iole w.i.t which bianus solu
Solu at NRP as customeis moie awaie uue to PSA W.i.t to Foou tiavelleis always piepaie in auvance Noie impulse puichase of biscuits Low loyalty Puichase to oveicome inconvenience Absence of the health conscious puichasei Paucity of Space foi stocking - Theiefoie, ie-stock often Piesence of foieign tiavelleis exploiing Inuia in long uistance tiavel Local Tiavel Chaiacteiistics: Bisceining buyeis: Ask foi specific bianus & biscuits veiy conscious about NRP & expiiy uate Peak his. - Noining (People consume biscuits with tea at the station befoie woik) Time spent with customeis veiy little Piesence of stall loyalty & iegulai customeis Piesence of health conscious consumeis Nutiichoice Available Sale of aiounu 2u-2S packs pei uay People ask foi "uigestive biscuits" Nen between SS - Su yis. buy Nutiichoice the most Sales of Rs.1uuu- pei stall pei week Rs.1u SK0s most populai Sales uepenu on the how busy a station is secunuiabau station has moie sales than the kachiguua, begumpet oi nampally station
:()**%"2%,V Long Bistance Tiavel: Absence of the health conscious puichase of biscuits Bealth not a factoi foi geneial long-uistance tiavelleis
Inuiviuuals with health conuitions like Biabetes caiiy foou Biitannia Nutiichoice NA 0nly Paile Activ Ciackei available in this segment Piice consciousness Nany tiavelleis fiom challengeu economic backgiounu The neeu foi laige SK0s at low piices Bigh benchmaik w.i.t Naigins (Biitannia pays 2S%)
Local Tiavel: Stiong loyalty towaius existing playeis Re-stocking Fiequency Savouiy & Cieam biscuits moie populai than Bigestive
:."'1-76'-.",V Silent obseivation at key stations both local & long uistance Inteiaction with stall owneis & consumeis Naue contact & geneiateu leaus foi 0B peisonnel to stait a supplying at iailway Founu out maigins of competitois thiough peisonal inteiactions & inteiviews
" Biscuits typically uisplayeu outsiue " Consumeis look at the uisplay befoie making theii pick
Corporate/ Pharmaceutical Gifting
Corporate & Pharmaceutical gifting industry in India is a big one ranking in close to Rs. Pharmaceutical companies gift doctors to build brand & relation through MRs. Analysts estimate that drugmakers spend nearly five percent of their revenues on small & large value gift items. While gifts of substantial value are under the IT department scanner, small freebies like free dinners and drug samples, promotional merchandise such as pens and prescription pads with embossed company logos are seemingly permissible.
This industry offers a huge potential for institutional sale for UB.
The cycle:
Instead of buying directly from the companies (UB), pharma companies buy from intermediaries i.e. pharma/ corporate gift suppliers Brand teams selects a pool of items that can be gifted " Tenuing change is a big pioblem " Limitation of time & Availability of change " venuois piefei selling SK0s of Rs. 1u & Rs. 2u " Reluctance to sell ouuly piiceu SK0s " Wiue iange of biscuits available - fiom Paile u to Chocolate Fantasy
Purchase teams negotiates price & terms Volumes are huge Discussion & acquisition of PO takes longer Payment made directly by Pharma company or by Intermediary Contacts are important Brand Managers, Purchase Department, Hot leads
Observations & Challenges: Knowledge about the budget is important Due to the long cycle, the shelf-life of the gift is important Most purchases happens when the new budget is released June, July Diwali & other regional festivals also peak season Combination gifts more popular Offers in MT impact Pharma negotiations Pharma gifting intermediaries orders dependent on PO from companies Brand name, Quality & Margins are key Timely delivery is important UBs Premium cookies are a perfect match for corporate & pharma gifting UBs health association is perfect for pharma gifting
Contributions: Have created a database of pharma companies with: o Names of Brand Managers o Names of Purchase Managers o Location o Contact details Made cold calls & generated leads Samples of UBs range were delivered to encourage trial Done cold calls with the dr reddys lab .
Cross promotional activities Found the cross promo5onal companies for the Mcvi5tes " SP Tea (Andhra sales corporation) " swastik masala. " lasa tea. " Paramount tea " Lamsa tea Generate leads with these cross promotional companies.
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Chapter 4 Recommuations In-store signage, especially at the entry, near relevant products, and at the checkout counter. In order to generate more demand it is necessary to have better connections with the subsidiary canteens. Costumer's think that Digestive is very premium brand, so branding should be done in according to that. Since there are no promotional actives by the competitors we should do some promotional activities and have the 1st mover advantage . Central stores department Csd canteens customers associated mcvities only with the digestive biscuits only. There should be an awareness program for the customers, so that the trail of the new skus will increase. Shelf branding is the most preferable way of branding. Since the company is very player it is important for the company to spend amount for the branding. It is seen important to keep the officers rank in the mind very carefully. (Officers are sensitive towards rank) All the canteen mangers just want the incentive. It better to have an incentive program for urc manger (they are the one who can order more from the deport and create denials ) A promotional event would be successful as there are no companies giving any promotions as such
Recommendations railways Generate interesting & catchy concepts internally for combo gifts Good morning theme tea & biscuits Health theme green tea & biscuits; oats & biscuits Healthy snacking Baked savouries & biscuits The Diwali gift a customised pack of our premium cookies
Health theme sounds the best as the customer's Associates UB as a healthy company Generated cold calls with Dr reddys lab.
Suggestion and observations
Customers / shopper keepers associated digestive biscuits as nutri choice (Britannia). There is should be a differentiation strategy to differentiate ubs digestive with the Britannia nutri choice. People associate themselves with brand ambassador Bipasha Basu as health conscious. I heard people saying give that Bipasha Basu wale biscuits
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Thiough the couise of this stuuy it is eviuent that theie is a huge potential foi 0B to exploie in the Emeiging Channels space. The leaus geneiateu thiough this couise of the last two months have potential of pioviuing sustainable business of the institution maiket.
Laige uatabases have been built in the aiea of: Phaimaceutical companies contacts Cpc contacts Railways contacts Csu contacts
These can be tappeu into to catapult both the bianu builuing & ievenue foi 0B.
The iecommenuations maue in this pioject can be uetaileu & elaboiateu fuithei to cieate iobust tactics foi the giowth the institution maiket. Also, given the wiue spectium potential clients 0B can ieach help uiviue the iisk. This channel ensuies that 0B uoes not put all its eggs in one basket.
Also, uue to the natuie of woik & inteiaction, the manpowei iequiieu to tap the institution maiket is compaiatively less. This also ieuuces the piessuie of cost of selling. This combineu with the huge potential of giowth makes institution an extiemely luciative channel to exploie. The piesence of 0B in this channel shall also enhance its Bianu Awaieness.
Focuseu effoits in this channel aie suie to show iesult in the foim of:
Incieaseu ievenue Bettei piofitability uue to cost ieuuction Biveisification of sales taiget achievement Bettei bianu awaieness Impact on the maiket shaie of 0B in the Inuian Biscuit Naiket
Augmentation of Productivity of Micro or Small Goat Entrepreneurship through Adaptation of Sustainable Practices and Advanced Marketing Management Strategies to Double the Farmer’s Income