Académique Documents
Professionnel Documents
Culture Documents
Submitted by:
RAVENDRA KUMAR GANGWAR
M.B.A. IIIrd-SEM
Roll No. 1475770045
PREFACE
Sales Department is the only revenue generation Center for the organization. Other
departments are considered as expense centers for the organization. In todays,
competitive parlance the selling activity is very critical. It requires lots of
brainstorming to occupy the mind share and heart share of the customers or
end users.
In most of the Indian companies the sales and marketing activities are carried out
together to have better results. Sales executives participate in and are jointly
responsible for formulating strategies on product line, on pricing, physical
distribution, marketing channels and promotional activities. The primary
responsibility is to manage the sales team & maintenance of the relationship with
distributive organizations.
More or less Ice cream is having seasonal demand and it requires continuous sales
efforts from the organization. Distribution system, which is prime concern for the
Ice cream manufacturers, as it is low involvement and perishable product. Vadilal
is a market leader in the branded Ice cream market in Ahmedabad. Due to highly
competitive structure of market, Vadilal is continuously doing sales and
promotional activities to boost the sales and retain leadership.
We are given opportunity by the Vadilal Industries Limited to fill the gap between
classroom study and practical application.
ACKNOWLEDGEMENT
For successful completion of this project, we owe a great deal to many people. We
convey our gratitude to VADILAL INDUSTRIES LIMITED for giving us
opportunity to do project with them. In allowing us to visit the organization and
study the various sales & distribution aspects, they have provided us valuable
information. We are thankful to Mr. A.K Saxena For spending time from his busy
schedule. We are thankful to office staff for their kind cooperation.
We take this opportunity to thank our H.O.D. Dr. Manish Aggarwal we are
grateful to Miss. Roli Mishra who helped us to elevate our insight and knowledge
of sales and distribution and giving us guidance throughout the project.
Last but not least, we are very thankful to all those persons who directly or
indirectly helped us in preparing this project.
INDEX
Preface
Acknowledgement
Chapter 1: Introduction
Chapter 2: Sales Management
Chapter 3: Sales Related Marketing Policies
Chapter 4: Competitive Structure and Policies
Chapter 5: Sales Department Relations
Chapter 6: Sales Force Management
Chapter 7: Sales Budget, Quotas, Assigning territories, Claim settlements
Chapter 8: Logistic Systems
Chapter 9: Analysis of Distributors
Chapter 10: Findings and Suggestions
Bibliography
Chapter 1: Introduction
1.1 About Vadilal Group
1.2 Organizational Structure
Head Quartered in Gujarat, the most industrialized State in India, the Group had a
turnover (1998-99) exceeding Rs.1500 million. Major companies of the Group are
listed in several Stock Exchanges of. India. The Group has a large investor base
and its brand name "Vadilal" commands an excellent equity.
The "Vadilal" philosophy of providing its customers with quality products and
services at affordable prices has resulted in the brand being a household name in
India.
I
ICE-CREAM DIVISION:
VADILAL the name conjures up images of ice cream laden bowls and a plethora
of new flavours. Starting from one man show with a hand cranked machine in
1926 as a small retail outlet, the ice cream division now has a production capacity
of 1 lac ltrs/day at 3 sophisticated plants, located at Ahmedabad, Pundhra and
Bareilly. These ISO 9002 certified plants for Pundhra and Bareilly are established
in such a way that they are in consonance with the market expansion strategies of
the division.
VIL
Vadilal Industries Limited
VEL
Vadilal Enterprise Limited
VIL:
Vadilal industries limited are one part of Vadilal, which is manufacturing division
of Vadilal. Along with manufacturing, it also looks after the Quality Control,
Research and development, Dispatch, and storage related activities.
VEL:
The Sales and Marketing related activities has been performed by the Vadilal
Enterprise Limited. VEL is liable to handle the relationship with the C&F agents
(Clearing and Forwarding Agents), Distributors and Dealers.
10
General Manager
(Sales and Marketing)
Sales Executive
Sales Coordinator
11
Appointing Distributors/Dealer
Provide Machines
Dealer/distributor Communication
12
13
14
Quality
At Vadilal, commitment to Quality is an Attitude. Vadilal Ice Creams contains only
the best ingredients, be it cashew nuts, almonds, pistachio chocolate or fresh fruits.
Great pains are taken to find the finest ingredients from around the globe. State-ofthe art-technology ensures that each scoop is dense, rich and filling, with no extra
air or ice-flakes. Special care is taken during packaging, storing, transit and
delivery so that consistency in quality is maintained. This is why when the end
product reaches the customer, he is convinced that quality shines through in
everything the group does.
Capacity
Price (Rs.)
Free Ice-cream
Western/Carrier
Western/Carrier
Voltas (3 Doors)
300 ltrs.
400ltrs.
400 ltrs.
19,000*
23,000*
24,000*
(Rs.)
5,000*
6,000*
5,000*
*Condition applied
15
1) One scheme, which Vadilal is running for the entire year, is offering
ComboPack. Combo pack is the package of two Party Packs. Customers
are getting two party packs by paying price for just one party pack. One
party pack is absolutely free. Vadilal get tremendous response of this
scheme and that is why they have decided to run this scheme for the entire
year. Under this scheme sometimes Vadilal offers two different flavors at
price of one.
For example:
Purchase Ice-cream
Free Ice-cream
Price (Rs.)
Vanilla
Vanilla
65
Kaju-Draksh*
Kaju-Draksh*
100
Butter scotch*
Butter scotch*
100
Fresh Strawberry*
Fresh Strawberry*
100
Fresh Litchee*
Fresh Litchee*
100
Black Current
Strawberry*
100
Fresh Sitafal
Real Vanilla*
100
Swiss Cake
Chocolate sundae*
100
Khandala special
Mango Ripple*
100
Fresh Orange
Fresh Mosambi*
100
Above party packs are available in 900ml and Sundae is 500ml
*Frozen desserts
2) Vadilal had launched Diwali Special scheme. Under this scheme Vadilal
had offered two choices to the customers:
PanchRatna Ice-cream + Cellos hot lunch Tiffin = Rs. 225/Rs. 140/-
Rs. 285/-
= Rs. 425/-
16
Promotional tools:
Promotions only through paper advertisements such as in daily
newspapers.
Promotions provided to dealers through Wall painting, Freezer painting,
Hoardings, Acrylic boards, Glow sign boards, Attractive boards for the
newly introduced flavors or schemes.
17
at a price lower than that covering total costs, including the variable costs
and allocated fixed costs.
For Example:
X
cost of production
X+Y
X+Y+6%
X+Y+6%+(12% to 20%)
= MRP
(Consumer Price)
2) Geographical Pricing:
Vadilal charges extra penny as Geographical pricing from the states where
the manufacturing plants are not located. Here, the margin of the C & F
agent is added to the MRP of the Ice Cream. Also the distribution cost is
higher for such states so these states have to pay somewhat higher charges
for the Vadilal Ice-cream.
Example:
X+Y+Z
18
MANUFACTURER
VIL
C & F AGENTS
DISTRIBUTORS
DEALERS/RETAILOR
VEL
CUSTOMERS
The above channel strategy defines the channel members and whether they are
part of VIL or VEL. As shown the Manufacturers and C&F agents are handled by
the VIL, whereas serving the Distributors, Dealers and Customers are the
responsibility of the VEL.
19
20
21
22
23
others
10%
Amul
30%
Kwality
Walls
35%
The above graph reveals that the Kwality walls is the national number one
player having 35% of the total market share. Vadilal is having the 25% market
share and giving tough competition to major brands like Kwality Walls and
Amul.
MARKET SHARE OF ICE CREAM MANUFACTURERS IN GUJARAT:
Brands
Vadilal
Amul
Havmor
Others
Havmor
13%
The graph shown above depicts that in Gujarat Vadilal stands at the first place with
52% of the market share followed by Amul and Havmor with market share of 25%
24
and 13% respectively. The market share reveals the strong position in the mind
and heart of the people.
MARKET SHARE OF ICE CREAM MANUFACTURERS IN AHMEDABAD:
Brands
Vadilal
Havmor
Amul
Kwality walls
Loose ice creams
Amul
20%
vadilal
35%
others
15%
Havmor
25%
If we see the scenario of the Ahmedabad Ice cram market then we find Vadilal at is
at first position having market share of 35%. However, number one national player
Kwality Walls is having just 5% of the total market share.
25
Free Ice-cream
Pista (1000ml)
Vanilla (1000ml)
Price (Rs.)
100
100
26
Combo Pack
SantraMantra +Vanilla
Fruit Bonanza + Vanilla
Alphonso Mango + Vanilla
Butter Scotch + Vanilla
Price (Rs.)
100
100
100
100
Flavor contains 900ml each
Amul was selling the Vanilla Party Pack (900ml) at just Rs.40 and
Party Packs (900ml) of Kaju Draksh and Butterscotch at just Rs.60
each.
Sales
Average/below Average
Increased by 50%
27
4.3 ADVERTISING
The advertising is done mainly through 2 ways.
Television
Newspaper
Since last two years, the Television advertising share has been abased and
Advertising through Newspaper has been spurted. The reason is that nowadays,
Companies are coming with different promotional schemes in different states. So
the Newspaper is the easier and cheaper way to convey the promotional schemes.
28
4.4 DISTRIBUTION
All the competitors have adopted the Intense distribution policy.
The no. of retail outlets served by is shown in the below table.
Competitors
Appro.%
Increase or
decrease
Vadilal
Amul
Havmor
Kwality walls
Loose ice cream parlors
June01
1600
800
380
160
60
June02
2000
1100
450
50
100
60% inc
50% inc
45% inc
70% dec
50% inc
Vadilal has been serving approximately 2500 retail outlets in the current year.
NUMBER OF DISTRIBUTORS FOR EACH BRAND OF ICE CREAMS:
Number of distributors of the leading brands of ice cream in Ahmedabad
as on June 02
Brands
Vadilal
Amul
Havmor
Kwality walls
Number of distributors
9
7
Doesnt have any distributor
5
29
30
31
32
1
2
3
4
33
due to increasing health consciousness. They also prefer to have diet ice
creams if provided with good taste.
Though the market conditions worst affected in the city of Ahmedabad, still
there is a demand for quality products especially among the young
population. There is a noticeable demand for expensive sundaes, puddings
or Souffls, though if generally a cost around Rs.30 to Rs. 60, but the
young generation orders it as easily as they order for a glass of water.
PREFERANCE OF CONSUMERS FOR VARIOUS ATTRIBUTES IN
CHOOSING AN ICE CREAM:
A consumer figures out various attributes before choosing a particular brand of ice
cream. These attributes decide the preferences that the consumer gives to each
brand according to his convenience of choice.
Preferences of attributes
Attributes
Price
Quantity
Quality
Flavors
Brand
%
30
25
20
15
10
34
35
36
37
38
39
40
Jaipur
Jodhpur
3) Madhya Pradesh
4) Uttar Pradesh
Eastern U.P. ( Meruth, Noida, Faridabad)
Western U.P.
5) Uttaranchal, Dehradun
6) Delhi
7) Haryana, Punjab, Chandigadh, Himachal pradesh
8) Jammu & Kashmir, Nepal
9) West Bengal
10)Orrisa
11)Chattisgarh
12)Tamilnadu
13)Bihar, Jarkhand
41
42
43
8.2 ORDERS: Vadilal has defined MOQ (Minimum Order Quantity) for the
distributors to make order to the company. As far as order of the dealers are
concerned that is the headache of the distributors. Here, the job of the Vadilals
sales staff is to assist the distributors in selling the Ice cream. Vadilal is having
MIS system installed in the organization. MIS helps Vadilal to know the status of a
certain Distributors.
8.3INVENTORY: For the raw material Vadilal keeps the inventory and do not
follow the exact JIT. The biggest problem Vadilal facing right now, is inventory of
raw material. Vadilals purchase department is always trying to keep the inventory
as low as possible but they are not achieving significant success in this matter.
The inventory of the packaging material is kept as low as possible and according
to the demand forecasted and growth rate of the market.
44
45
6%
5%
5%
0
vadilal
Amul
Havmor
Kwality
Walls
Interpretation:
The distributors margin has not been changed since last 8 years. The distributors
have been given the same margin even if there would be any increase or decrease
in the price of ice cream. Infect, they are the most benefited though their margin
has not increase since last 8 years. As the cold storage room is fully utilized due to
schemes introduced on various packs as well as there is increase in sales for the
same.
46
20%
18%
20%
Amul
Havmor
Kwality
Walls
15%
10%
5%
0%
vadilal
Interpretation:
Above Graph depicts that the profit margin provided by different brands to the
dealers is almost equivalent. Vadilal is providing least profit margin to its Dealers
but Dealers are satisfied with it because of high sales. As the Freezers are fully
utilized due to schemes introduced on various packs as well as there is increase in
sales for the same.
47
Investment
Areas covered
No. Of dealers covered
Expenses
Sales
(3 times increased)
7-8
130-140
20-25%
Approx. 1.2 cr. increased by 35% (due to schemes)
48
Preferences of packs as per the area and type of population as per a Vadilal
Areas
Preferences of
population
packs as per
Naranpura,
Well developed
population
All even the one
Navrangpura,
higher middle
Paldi.
class as well as
Satellite,
parlours
Developing
rich class
Middle class,
higher middle
demand but
class as well as
especially take-
rich class
Majority lower
packs
Generally low priced
class found
Majority lower
with schemes.
Generally low priced
class
Thaltej
Juhapura,
Developed
Nava Wadaj
Sabarmati,
Developed
Ranip.
in their outlet
49
Company outlets
whole business
95%
10
(annual sales of at
least 7-8 lakh)
Above s lakh
1-5 lakh
50000-1 lakh
70%
60%
55%
150
230
mineral water
Soft drinks, snacks
160
mineral water
Stocks almost all dairy
of major brands,
products and other
50000-250000
40%
500
eatables
Stocks almost all dairy
of major brands,
products and other
Below 25000
25-35%
800
eatables
Stocks almost all dairy
of major brands,
products and other
eatables such as Soft
drinks, snacks as well as
ice creams of other
brand.
LOCATION OF AN OUTLET:
During last 3-4 years the policy of keeping a minimum distance of 500 meters
between the outlets seems to no more exist, as now in many parts of the city one
can find 5 to 6 outlets at a stretch, which hardly have a distance of 200 meters.
This probably provides consumers with the best availability of the product, but it
may create a problem for small dealers who have competition next door.
50
51
Happenings
New Launches
Recently the group has launched Fresh Fruit Icecream with ripples under
the Fantasy range viz. Fresh Orange Fantasy, Fresh Mango Fantasy, Fresh
Strawberry Fantasy and Fresh Black Currant Fantasy.
Three new Koolfi's have hit the market. Namely Mango Koolfi, Mava
Koolfi and Pista Koolfi, these koolfis priced at Rs.10/- is a big hit in the
market place.
Two new Sundaes ---- Chocolate Sundae & Strawberry Sundae at Rs. 10/each have been introduced.
52
Happinezz Parlour
Vadilal introduced exclusive ice cream parlours under the name "Happinezz
Parlours" to meet the expectations of our valued customers.
Happinezz provides cozy, nice & cool ambience where one can enjoy world-class
ice creams, ice-cream sundae, shakes and other various ice cream concoctions to
his heart's content.
Presently Vadilal has 23 such parlours in India and it expects to increase its
number very soon. To open a Happinezz parlour following requirements have to
be met.
Operational Requirements
1. A place at a prominent location with at least 15' frontage and at least 400
sq.ft. Area reserved for ice creams only.
2. Minimum two-display dispensers- one storage deep freezer unit and one
soda fountain freezer unit as equipment are required.
3. Proper space for sitting or standing for serving ice creams.
4. Inside parlour walls should be clean and may have product display to
enhance the general mood and give feeling of excitement.
5. Translate of products with their prices and attractive photograph should be
displayed properly to create the right ambience in the parlour.
53
Chapter -7 Conclusion
54
Conclusion
The prices of the packs have increased hardly by 15-20% but the quantity offered
has almost doubled, as per the schemes.
There has been a touch competition among the branded ice cream manufacturers
& the loose ice cream makers regarding the price of the product.
Ice cream manufacturers came out with a concept of specially designed store to
sell only ice cream or dominantly ice cream, which was given a lable of ice cream
parlours.
The parlour was characterized by the preference of a display machine through the
glass panes of which the stock flavours were visible.
The recent trend among the young generation is towards sundaes & desserts,
which are prepared at the very moment as per the taste & preference of the
consumer. Vadilal has its happinez parlours situated on few of the citys most
happening areas: it has an advantage of serving the consumers from its own outlets
to serve varieties of desserts and sundaes. Ice cream served with a combination of
sauce of different flavours can be a big hit in the market.
These parlours do serve sundaes & desserts or even souffls but it is mixed with
artificial flavored sauce & fruits, which is less preferred as compared to fresh frit
flavor. As the consumers views have also been known as a part of the survey, they
do not prefer ice cream which are more sweet, which the company serves through
happinez parlours by adding canned fruits and that too, sweet. Thus it could be
profitable as per the demand of consumers to serve less sweet & fresh fruit sauce
in sundaes or desserts.
55
BIBLIOGRAPHY
Books:
1. Business Research Methods
By Donald R. Copper & Pamela S. Schindler
Tata McGraw-Hill Publishing Company Ltd.
New Delhi, 2002 Edition
2. Marketing Research
By Naresh K. Malhotra
Pearson Education, Inc.
New Delhi, 2004 Edition
1. HandBook For Writers & Editors
By S. Srinivas Rao
Ahmedabad Management Association
Ahmedabad, 2002 Edition
Websites:
www.vadilalgroup.com
www.indiainfoline.com
www.google.com
www.amul.com
56