MODERN TRADE: With the organized retail sector growing at 30 per cent, the contribution of large-format retail

store to the turnover of fast moving consumer goods (FMCG) firms is set to more than double in 2008. The FMCG sector has taken some steps to match the pace of growth to the organized retail sector. Companies have launched dedicated sales personnel for modern trade channels and taken initiatives to boost point of purchase (POP) management at the large stores. Modern trade refers to retailing through large-format stores whereas general trade refers to retailing through kirana stores. V.S.Sitaram, executive director, marketing (consumer care division) Dabur India said, The servicing needs of modern trade are vastly different from the traditional stores and it requires a sell through approach. The exciting new formats also open up immense opportunities for brand activation at the point of purchase. The selling skills are vastly different and are of a higher order. A team with appropriate skill sets has been put in place within Dabur India to respond to the requirements in modern trade and the results are most encouraging. It has initiated a programme titled DARE Driving Achievement of Retail Excellence aimed at improving Dabur s distribution effectiveness in organized retail sector. Industry experts say that while the emergence of modern trade has surely altered the retail landscape in India, the fact remain that a bulk of FNCG sales still comes from traditional trade. On an average 95% of the sales come from kirana stores with a meager 5% coming from large format retail stores. For Dabur about 3% of sales come from modern trade and it expects it to grow up to 7.5% in the near future. For some categories of products like premium skin and hair care, organized retail contributes a higher % of up to 50%. Secondly, the main fear of FMCG companies that modern retailers will squeeze their margins was dispelled by the head of a leading retail chain who said in a seminar on retail that Unlike developed countries where FMCG companies are pressed on margins by retailers, in India since the retail sector is just picking up, retailers tend to not pressurize companies for margins . This year, FNCG major Hindustan Unilever (HUE) also announced a joint venture with South-Africa based Smollan holding to provide in-store services to its customers and point-of-purchase management at large format retail stores. Sanjiv kakkar, executive director, sales and customer development, HUE said, Modern trade in India is growing and evolving rapidly and our strategy for winning in this growing retail market is to win at point-of-purchase with our shoppers and by delivering best-in-class service to our modern trade customers. This JV will bring in world class execution excellence in the market and build the right capabilities to deliver the company s marketing strategy in modern trade . Market research reports say 25-40% of consumers switch brands at the point of sale driven by display or promotion. Other companies that have a dedicated team for modern trade include ColgatePalmolive, procter & Gamble India and Marico. However, the companies cannot afford to

Classified - Internal use

last but not least with Kinley the mineral water & soda they try to get an impact of purity with punch line Boond Boond Mein Bismas . Their tastes & preferences are also different. The neighborhood kirana store. Organized retail will give the companies access to high-income consumers and kirana stores will give much greater volume. Similarly. So they have chosen Mr. so with this view the company has launched different types of products to match their customer s tastes & preferences. 2) Thumbs up is such a product by which the company is targeting the youth generation who likes adventures & thrills. Along with forming the JV with Smollan.forward youth. So in their Advertisements they every time shows in any party or when some friends gather they would like to choose the particular product. will always occupy that position of convenience. 6) Maaza & Minute maid pulpy orange they are targeting the people from all the ages who are fruit specially Mango & Orange-lovers. 5) Fanta is attracting especially the ladies section of the society. Indian consumers in most parts of the country have the kirana stores to service them on all days. as they still remain the biggest source of revenue. 1) Coca cola is such a brand with the help of which company is targeted the whole family. by virtue of being the nearest store to the consumers. all through the year. as he is famous for his stunts & adventures. 3) Again Sprite is such a product by which they are targeting the straight.Internal use . which is aimed at enhancing the customer experience at select kirana stores in urban areas. The companies hence are expected to follow a twin-focus in 2008 to get the most out of retailers. consumers need convience. In retail.neglect kirana stores. Marico and Dabur launched Mera and Parivaar program were aimed at activating the general trade channel by giving consultancy to mom-and-pop shop owners. So the brand ambassador for the product is Janellia. Akshay Kumar. so their punch line is Sidhi Baat No Bakwas . says analysis. 7) And. Unlike a developed market where consumers need to travel some distance for shopping. HUL also went fast-forward this year with its Super Value Store (SVS) program. 4) Limca is the product by which they are targeting the simple people who want some moments of leisure. Classified . CUSTOMERS OF MODERN TRADE: There are different types of customers existing in the market.

Nestea. Nestle owns about 75% of Alcon Inc. so they purchase the coke products and enjoy the visit. Gatorade sports drink. and equipments for ocular surgery) and some 28% of cosmetics giant L Oreal. Cola is not the company s only beverage. The company also owns Gerber products and Jenny Craig. In addition to its own products. Mirinda.Internal use . and Slice. y y y y COMPETITORS: PepsiCo. Its Quaker Foods division offers breakfast cereals (Life). Classified . A true global giant. Mountain Dew. pasta (Pasta Roni). The company also owns Frito-Lay.A. (ophthalmic drugs. Type 2: Again some of the people come to the outlets without any purpose. and Aquafina water. 7up. The soft-drinks are a part of every one s life now a days. baby formula. Nestle S. Nestle is the world leader in coffee (Nescafe). rice (Rice-A-Roni). and bottled water in the mix. Its soft drinks include pepsi. Pepsi sells Tropicana orange juice brands. Maggi. so they purchase the products. Friskies. Ruffles). contact-lens solutions. and Nestle. Fritos) and potato chips (Lay s. It is also one of the world s largest bottled water (Perrier) makers and is a top player in the pet food business (Ralston Purina). Type 4: Some of the people are influenced by warm display and purchase the product. Type 3: Some of the people are influenced by their younger ones and purchase the products. Nescafe. and side dishes (Near East). Inc: The PepsiCo challenge (to keep up with archrival the Coca-Cola Company) never ends for the world s #2 carbonated soft-drink maker. Pepsi s products are available in some 200 countries. Nestle crunches more than just chocolate. The world s #1 food company in terms of sales.: With instant coffee.TYPES OF CUSTOMERS: y Type 1: Some people come to visit the outlets to purchase the necessary products of the day to day life. so they purchse the coke products. Type 5: Some of the people are yet also influenced by the offers given in the Modern trades. Nestle is the world s #1 food company in terms of sales. the world s #1 snack makers with offerings such as corn chips (Doritos. Its most well-known global brands include Buitoni.

and mixers. 1. Serving Canada. 300ml Xpress (350ml) Mobile (500ml. so we can classify them as the diamond outlets as their dealings are more than 800 cases a year. 2L. as well as old favorites such as Hires and RC Cola. world s #1 Coke and #2 Pepsi. juice.5L.Dr Pepper Snapple Group. Mott s Schweppes.S. DPS is the #3 soda business in North America.25L) Water Coke at least 3 types of other brands Sprite + at least 2 types of other brands Coke + at least 3 types of other brands + Maaza + MMPO Coke + at least 3 types of other brands + Maaza + MMPO Coke + at least 3 types of other brands Kinley Classified . and Squirt. Inc. and the U.Internal use . 2. As per availability standard: 200ml. Country Time.: It s a snap decision about what doctor to choose. 1. Among its brands are A&W Root Beer.2L. Dr pepper Snapple Group (DPS) is the bottler and distributor of Pepper soda and Snapple drinks for North America. Hawaiian Punch. Some alternative products for Coke in India are: Coke & Thumps up Limca Fanta Maaza Sprite Kinley Vs Vs Vs Vs Vs Vs Pepsi Nimbus Mirinda Slice & Fruity 7up & Mountain Dew Aquafina VISI-COOLER STANDARD: As we know the Modern Trades are huge outlets who deal in huge quantity. 250ml.25L) Party Pack (1. along with ready-to-drink teas. 600ml) Fridge pack (1L. Mexico. . juice drinks. the company (formerly Cadbury Schweppes Americas Beverages) offers a large portfolio of non-alcoholic beverages including flavored. carbonated soft drinks and noncarbonated soft drinks.

It should be pure and at least 50% charged. Shelf Display--. 6 facing of any PET display together and visible. It can be a cut case display as well.Internal use .COOLERS: 1) 3-SHELF NCB COOLER Juice RGB Juice MOBILE Water 2) 5-SHELF COOLER Juice RGB RGB XPRESS (Full shelf) or MOBILE (Full shelf) MOBILE FRIDGE PACK / PARTY PACK + WATER 3) 5-SHELF DOUBLE DOOR COOLER Juice RGB RGB XPRESS (full shelf) or MOBILE (full shelf) MOBILE FRIDGE PACK / PARTY PACK / WATER ACTIVATION STANDARD: Essential Activation Standard: y y y y y 3 Tier Display Rack with Header--.Other than rack. Price communication Visi-cooler in prime position OBM / Drinking shot communication Classified .

4. 24. 15. 16.LT ARUNJYOTHI ENTERPRISES LTD (Taaza) ITC LTD SRI NIRDVAITA FARMS IND P LT AVENUE SUPERMARTS (P) LTD ADITYA BIRLA RETAIL LIMITED Classified .OUTLETS: 1. 22. CANTEEN STORE DEPARTMENT CHANDANA BROS TEXTILES & JEWELLERS CHANDANA BROTHERS-AMEERPET FUTURE VALUE RETAIL LTD (BIG BAZAAR) FOOD WORLD P&WCENTRL W H HERITAGE FOODS INDIA LTD METRO CASH&CARRY I P LTD RELIANCE RETAIL LTD RELIANCE HYPER MARKET SPEARS MARKETING PVT. 7. 18.Internal use . 27. 13. SPENCERS RETAIL LIMITED SUBHIKSHA TRAD SERVICES LTD TRINETHRA SUPER RETAI PVT LTD VAH MAGNA RETAIL PRIVATE LTD VISHAL RETAIL LIMITED S. 6. 23. 10. 9. 19.P. 21.V. 14. 3. 8. 20. 12.T. LTD. 26. 5. 17.ENTERPRISES (Nilgiris) NISHVED RETAIL MARKETS PVT LTD (Nilgiri's) DHRITI SUPER MARKETS (Nilgiri's) ANAGHA ENTERPRISES (Nilgiri's) GOURMET STORES PVT LTD HYPERCITY RETAIL (INDIA) LTD MAX HYPERMARKET IND. 25. 2. 11.

Which will be recorded in our books on sub sequent days.  To gain a practical knowledge about working capital and reconciliation of the company. 2) Debit notes: This is a note issued by company to a party in case of any discounts or schemes offered by us. Reconciliation is essential to ensure timely payments as of due dates.Internal use . Objectives:  To ensure MT (Modern Trade) supplies without interruption by the way of identifying gap between company ledger and customer ledger. Invoice: The amount of goods sent by us.  Debit Note accounting: Customer will pass debit note against company once the scheme / promo completed. it will be knocked off only after stock return accounts. Classified . Reco Gaps:  Stock return accounting: Most of the cases customer will account the invoice value based on actual stock receipt value whereas company books reflect full invoice value. To find out difference between our record and customer record on a particular date. Majorly we find difference in 3 aspects. 3) Cheque / Cash receivables: The amount which is paid to the company either in the form of Cash or Cheque.RECONCILIATION Definition: Reconciliation is the process of comparing our company accounts book to the outlet accounts book for a particular period.  To avoid deviation between Company and Customers. 1) Sales returns 2) Debit notes 3) Cheque / Cash receivables 1) Sales returns: The difference between Invoice and goods received by the party.  To supply load before due date and get money from customer in the ageing period. But company books will get reconciled only after accounting the debit note.

Internal use .Problems in Debit note accounting:  Whether MER (Marketing Expense Requisition) is sent or not.  Volume quantification: The availability of stock has to be check in the warehouse. which has been claimed by the customer. 2) Claims related to TOT: These claims are based on Volume Turnover.  If any scheme ran out of the approved budgets (MER): In case of any scheme has been run out of the approved budget then solve the problem by executives. How Finance will process these claims:  Need to check the budget block: Whether the given scheme is allocated in the budget or not.. Final Credit Note to party: After debit note verification. check that scheme ran within the Budget i.  Need to check scheme ran as per approved MER: After the verification. Need of the Study: Classified .E. M.e.e. Credit note is send to the party / customer.R.i. immediately our account will be debited. Problems of Modern Trade Claims: 1) Claims related to VLMF (Volume Linked Marketing Funds): These claims are based on funds for given Volume. approved MER. Payments related issues: Customer will pay payment online through 1) EFT (Electronic Fund Transfer) 2) RTGS (Real Time Gross Settlement) After the customer payment.

The present study is an empirical work presented in descriptive manner. Hyderabad.Scope of the Study: This report of Modern Trade Reconciliation in Hindustan Coca-Cola Beverages Private Ltd is mainly based on practices and followed by Hindustan Coca-Cola Beverages Private Ltd. Classified .  This project is concerned to only one organization i.e.  The figure and facts stated in the reports and other forms are assumed to be true.. a study of the present kind is bound to have certain limitations. Since the objectives of the study will be attained by this kind of analysis no attempt has been made to provide comprehensive conceptual analysis.Internal use . financial reports and bulletins of the company. researcher humbly submit them at this stage. The scope of the study is limited to Hindustan Coca-Cola Beverages Private Ltd. Hindustan Coca-Cola Beverages Private Ltd. Limitations of Study: Despite all possible efforts to make the analysis more comprehensive and scientific. The study covers information given by executives of company.

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