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7/23/2010 Alok Mahajan
Table of Contents
Review of Related Literature.................................................................................................7 FMCG Industry Snap Shot:..................................................................................................15 FMCG industry size.................................................................................................15 Category Wise Share of Sector:.............................................................................16 FMCG Growth: urban and rural..............................................................................16 India: Consumption Story.....................................................................................................18 Segmentation analysis for fruit juice................................................................................19 Geographic segmentation:......................................................................................19 Demographic segmentation:...................................................................................19 Socio-economic segmentation:...............................................................................20 Psycho graphical segmentation:.............................................................................20 Details of Actual work undertaken......................................................................................23 Tropicana-Impulse Buy........................................................................................23 Tropicana: Extremely Lucrative product for Retailer..............................................23 Classification of Market: Delhi & NCR....................................................................25 Understanding Market Scenario:-Faridabad...........................................................28 Understanding Reporting Hierarchy and Responsibilities:-....................................29 Myopic Hierarchy View-Faridabad..........................................................................30 Understanding -Merchandising/ Displays: -............................................................30 Distributor’s Role.....................................................................................................31 Understanding Mechanics of Distribution Channel.................................................32 Distributor Web in Delhi &NCR(Faridabad & Gurgaon)..........................................36 Faridabad Market:-..................................................................................................38 S.W.O.T analysis of Faridabad Tropicana Market...........................................................39 Area Details.............................................................................................................40 Birds Eye View-Central Delhi..............................................................................................41 2
Coverage Areas-Finding Tropicana Gaps..............................................................41 Questionnaire Details for Tropicana –Central Delhi...............................................42 Survey Form-Explained Logic & Underlying Need...................................................43 Sales exercise:-.......................................................................................................44 Pricing of Tropicana and Gatorade.........................................................................44 Sales Progress:-......................................................................................................45 Estimation Exercise...............................................................................................................47 Estimation Exercise................................................................................................48 Understanding Fields -Manpower Estimation.........................................................48 Deciphering-Man power Estimation........................................................................48 Market under Scanner:-Karol Bag..........................................................................52 Karol Bag:-Deciphering Ground Reality.....................................................................53 Market under Scanner-Gole Market, C.P, Pahar Ganj...........................................54 Gole Market, C.P ,Pahar Ganj:-Deciphering Ground Reality.................................55 Market under Scanner-Chandni Chowk..................................................................56 Chandani Chowk:-Deciphering Ground Reality........................................................57 References and Bibliography.
Title of the Project undertaken
Juice Market-Tropicana & Competition Analysis
Need & Objectives of the project
Tropicana business for PepsiCo in Delhi is not reaping profits for the firm. PepsiCo’s Tropicana in juice market faces a daunting challenge from Dabur's Real in Delhi. Dabur’s has staggering 60% market share in Industry whereas as of now Tropicana stands at meager 20%.So clearly there is a visible gap in terms of market presence where Tropicana is lagging. According to survey done by AC-Nielson ,out of 60,000 shops Tropicana is present only in 12000 shops and price of knowing the name of shops cost 12L to company/ Need of this project was felt as company wanted to depict the real market scenario from Quality man power, free from any biases and presenting the grass root level reality of the product’s presence in Delhi region. After taking the feedback/suggestions from summer trainees they can work on their soft spots. Secondly, company require practically innovating strategies on how to increase sales figure from 75 Crore to 200 Crore-which clearly focuses on the big picture and hence, enabling the brand Tropicana to increase its appeal and value. Also the untapped shops asks for more resources for better coverage and better execution. On 17-04-2010 PepsiCo launched their new product Gatorade Sports Mix Company’s aim is to make sure that Gatorade reaches the counter where Tropicana is already present and also to make clients aware of the product
The following are the objectives of the product undertaken:
It is also done in order to familiarize oneself with the work that has been done in the areas of one’s interest and to get some useful information in order to understand the problems and issues of the research topic.1. it was essential to review the relevant literature for the variables of feeling of alienation and frustration and the effect of guidance on the 5 . Do Competitive analysis of margins and scheming of beverage industry-find give incremental out the retailer margins and distributor margin of competitor beverages.g. How to optimize supply chain of Tropicana? 5. 3. Why Dabur’s Real is ubiquitous across Delhi when compared to Tropicana? 6. This will enable organization to know what offerings are competitors making to clients. placing Tropicana within the cafeteria of Life Insurance Corporation facility located in “Canaught-Place” or placing Gatorade at various fitness centre like Goldie’s-Gym to growth to organization and hence increase its value. Preparing a blue print on how to turbo charger the sales of Tropicana from 75Crore Last year to 200Crore this year The entire project was divided into three phase: Review of Related Literature The study of related literature for conducting research is important and helpful in understanding the need for the research undertaken. Finding places where PepsiCo can sell its Tropicana in high volumes that differ from traditional trade. E. Calculating hidden sales from untapped markets and doing human resource estimation. How their business model differs? 7. Thus. Find the market “Where Dabur’s Real is present but Tropicana is missing??”-directly enabling the Tropicana to increase its presence across new consumer base in turn increasing sales and hence forth increasing its revenue 2. 4. 8.
ending with pre and post-sales promotional activities. partners. which is the world's largest marketing body. Marketing is defined by the American Marketing Association as the activity. as in shopping. and exchanging offerings that have value for customers. The Chartered Institute of Marketing. Only the major research findings are given here below. anthropology and neuroscience. The marketing literature is also infamous for re-inventing itself and its vocabulary according to the times and the culture. However. which included advertising.above mentioned variables of mothers of mentally challenged children. allowing numerous universities to offer Master-of-Science (MSc) programmes. clients. business planning and execution. the profession is now widely recognised a science. and society at large. 6 . distribution and selling. anticipating and satisfying customer requirements profitably. delivering. economics. communicating. or going to a market to buy or sell goods or services. It is also related to many of the creative arts. set of institutions. Marketing practice tended to be seen as a creative industry in the past. defines marketing as "The management process responsible for identifying. The overall process starts with marketing research and goes through market segmentation. psychology. The term developed from the original meaning which referred literally to going to market. and processes for creating. MARKETING: Marketing is an integrated communications-based process through which individuals and communities discover that existing and newly-identified needs and wants may be satisfied by the products and services of others. sociology. mathematics. because marketing makes extensive use of social sciences.
George Stonehouse. It can be expressed as a company's sales revenue (from that market) divided by the total sales revenue available in that market. the percentage or proportion of the total available market or market segment that is being serviced by a company. in strategic management and marketing is. highlights that Market Share is the proportion of actual sales(either volume or value) within a defined market. According to David Campbell. according to Carlton O'Neal. It is generally necessary to commission market research (generally desk/secondary research. and delivering value to customers and for managing relationships in way that benefit the organization and its stakeholders” MARKET SHARE: Market share. although sometimes primary research) to estimate the total market size and a company's market share. Bill Houston (1999) .market share is measure of an organizations performance with regard to its ability to win and retain customers. and is thus a measure of satisfying customers MARKET SHARE ANALYSIS: Market share analysis is an important part of market analysis and indicates how well a firm is doing in the marketplace compared to its competitors. It can also be expressed as a company's unit sales volume (in a market) divided by the total volume of units sold in that market. “Marketing is an organizational function and a set of process for creating.According to Boone Kurtz Mackenzie Snow. It is a part of marketing research process. Malcolm McDonald(2002). 7 . It can be measured by either volume or by value.
or edited. some qualitative research. This process is guided by discussions with management and industry experts. The data from the questionnaires are transcribed or key-punched on to magnetic tape. the researcher should take into account the purpose of the study. such as focus groups. coding. if necessary. analytical models. the research can be designed and conducted properly. Problem definition involves discussion with the decision makers. Data Preparation and Analysis Data preparation includes the editing. and identifying characteristics or factors that can influence the research design. interviews with industry experts. Development of an Approach to the Problem Development of an approach to the problem includes formulating an objective or theoretical framework. perhaps. hypotheses. qualitative research and pragmatic considerations. and verification of data. the relevant background information. 8 . In defining the problem. corrected. what information is needed. research questions. Once the problem has been precisely defined. Number or letter codes are assigned to represent each response to each question in the questionnaire. analysis of secondary data.Stages of marketing research process Problem Definition The first step in any marketing research project is to define the problem. Each questionnaire or observation form is inspected. analysis of secondary data. transcription. case studies and simulations. and how it will be used in decision making. and. or disks or input directly into the computer. and.
in which access to one service depends on purchase of another According to Galit Shmueli. Microsoft Excel is used for data interpretation. Cross Selling: Khurana. author of Information technology for retailing defines cross selling as sales techniques of selling additional products to existing customers Jane W. gives meaning to the data that have been collected. while data analysis. Patel. Once a customer has "taken the bait" and purchase one product.Verification ensures that the data from the original questionnaires have been accurately transcribed.Or it may involve explicit packaging arrangements . Peter C.D'Arista (1994) highlights that cross selling merely reflect an institutions efforts to inform customer of other services available . try to sell them another while you have their attention Visual Merchandising Bhalla author of Visual merchandising sates that -Visual merchandising is defined as the presentation of any and all merchandise at its best:(i)color coordinated- 9 . Nitin R. guided by the plan of data analysis.Bruce (2007) cross selling is an opportunity.
It’s the first tactical representation of projected merchandise that the customer will see. 1999. 10 .and (iii)self explanatory (descriptive/illustrative) Visual merchandising is the activity of promoting the sale of goods. Oxford University Press) Rosemary Varley (2001) indicated that visual merchandising is used for aspect of product management that is concerned with presenting the product within a retail outlet to its best advantage. dramatizing the brand and merchandise offer.(ii)accessorized(related-roducts/props). (New Oxford Dictionary of English. Ko Floor (2006) observed that Visual Merchandising injects life into the store as well. Nirupama Pundir observes that visual merchandising is the “icing on the cake”. especially by their presentation in retail outlets.(synchronized-colors).
The sampling unit is the basic unit containing the elements of the population to be sampled. formulating a hypothesis collecting the data . Research Methodology is a way to systematically solve the research problem . Secondary Data: • • Collected data from personnel manual of Pepsi. News papers and Internet.It may be understood as a science of studying how research is done scientifically. Collected data from different magazines. For completing the project work.Research Methodology adopted Research in common parlance refers to search for knowledge The term research refers to the systematic method consisting of enunciating the problem . analyzing the facts and reaching the certain conclusions either in the form of solution towards the concern problem or in certain generalization for some theoretical formulation . data inputs were collected from the following sources: Primary Data: • Collected data through discussion with the Sales manager/Area sales manager of PepsiCo. journals. This easy to understand 11 data present the unbiased picture of market to the . After covering particular market data digging is performed and consolidated results of each market is shown in organization in graphical format along with suggestions/scope of improvement to maximize market penetration of our product. Research method being followed is Survey Method and Observations. Sampling unit for the study include different retailers of Central Delhi.
organization and helps them to create value for their product to customers by giving them better services.Area wise input is given to central executive of that region enabling him to know the opportunities available for him to do more business which in term helps him to achieve his target and ultimately yielding to better appraisal and growth in firm.Output of this survey was given as feed back to Territory Development Manager and Area Sales Manager . higher management by letting them know their soft spots and finding areas of immense potential in markets . 12 .discussed in organizational reviews .which when consolidated is presented to upper management .
161.4% Category Wise Share of Sector: Source: AC Nielson 40% share of food products in F.G offers whole set of opportunity for juice segment.9 MAT DEC 2009 1.M.023.FMCG Industry Snap Shot: FMCG industry size In Rs billion FMCG Industry Size Growth rate (%) Source: AC Nielson MAT DEC 2008 1.C. FMCG Growth: urban and rural 13 .1 13.
14 . it has been seen that cola sales have fallen dramatically after rising health concerns associated with it and this seem to have benefited the fruit beverage industry. “Indian Non-Alcoholic Drinks Forecast to 2012”. It is learnt that convenience and natural taste together with health-consciousness has played an important role in the growth of Indian juice market in recent years. According to RNCOS (industry research firm) latest research. Sales have been boosted by the changing lifestyle of the Indian middle-income group amid rapid urbanization. Furthermore. Market research foresees the Indian market for fruit/vegetable juices to grow at a CAGR of around 24% (in volume terms) and around 30% (in value terms) from now till 2012.Juice Market -India Indian Juice industry has emerged as a great opportunity for non-alcoholic drinks market and poses great opportunity for many firms. the juice market (including both fruit and vegetable) has emerged as a fastest growing segment of the Indian non-alcoholic drinks market over the recent past. Tetra packs have emerged as a boon for providing practically fresh and preservative-free juice.
It is also planning to add two more variants as it eyes a bigger pie of the Indian fruit-based juice market.Class. recently planned to expand its offering under flagship fruit drink brand 'Real'. Dabur India. Parle Agro. juice making companies will have wider access to consumers who can shell out money to buy juices. announced its entry into the 100% juice market in late 2008. the maker of mango drink Frooti. after acknowledging the enormous future market potential. Other major brands include PepsiCo’s Tropicana and Coca-Cola’s Minute Maid. 15 .Number of Indian players have been entering or expanding their portfolio into the segment. for instance. Another player. India: Consumption Story Estimated juice market in India is worth RS 600Crore.So with an ever-growing customer base of Middle.
So we can say with ever increasing disposable income and increasing awareness among consumers there is immense potential in Juice market in upcoming years. 16 .
The category of fruit juices are dominated by Pepsi with its brand Tropicana. working professionals. As a growing category. the fruit juice market has not been fully tapped because of poor infrastructure and storage facilities.Segmentation analysis for fruit juice Introduction: India is the second largest market for foods and vegetables in the world. Hundreds of new beverages are introduced every year.5 million tones. Geographic segmentation: The fruit juice market share is concentrated in the metros like Delhi. disposable incomes. They are available in number of flavors and fortified with calcium which is required in higher 17 . Ahmadabad and small cities like Ludhiana. Even though more supermarkets are being built in a larger size. educated housewives. the non-carbonated beverages have become one of the fastest growing businesses. fruit-based milk drinks and fruit-based soya milk. young health-conscious adults and the ageing population. fruit drinks. nectar. Pune. The major growth drivers in fruit juice market are increase in health consciousness. and highly unorganized market. The market now has a variety of fruit juices like 100 % fruit juice. mini metros like Benguluru. Mumbai. The growth of the fruit juice market increased with the proliferation of the supermarkets and malls in the metros and mini-metros. Coca Cola India with its brand Maze. Amritsar and Jalandhar. Chandigarh. However. Demographic segmentation: The regular consumers of fruit juices are children. However. The production of fruits account for 48. The customized packaged fruit juices are targeted at kids below 6 years. Dabur Foods with its brand Real. Kolkata and Chennai. The fruit juice companies have targeted all the age groups by different juices. fruit juices must fight the battle to win the shelf space of markets. and more sophisticated cocktail culture. Hyderabad. with people turning more health conscious. their shelf space is still unable to accommodate all of these new beverages in the market. executives.
18 . they are available in 200 ml packs which are just right for kids. However. as fruit juices are rich in energy and nutrients. Further. and other factors that make up an individual's perception of value. such as ease of preparation. the 65 ml packs of mango Frooti launched in Pune by Parle Agro for Rs. Fruit juices are an instant source of energy which helped in tapping the sportspersons and kids who are actively involved in sports. They no longer see these beverages as simple thirst quenchers with health benefits. individuals belonging to higher and middle socio-economic strata are the regular consumers of packaged fruit juices. Psycho graphical segmentation: Healthy living is a growing trend. high level of availability. Active and health oriented people are no longer the primary consumer of fruit juices. For example. and opinionated consumers. the consumer base for fruit juices is broader. These products attract a wide range of consumers ranging from those having specific health needs to those simply looking for healthy refreshments. ergonomic packaging. Nowadays. They provide an easy gateway to a healthy lifestyle.quantities by children below 6 years of age. The different pack sizes like the half and one liter pack are aimed at increasing the in-home consumption of juices. Also. In the next few years. portability. Socio-economic segmentation: The fruit juice market has shown a tremendous growth in the recent years. One of the major reasons for this is the increase in the disposable income. 5 has aimed at broadening the socioeconomic customer segment. Consuming fruit juices is almost an effortless switch compared to dieting or exercising and it does not require major behavioral change. However. They see these products serving other needs that fit a simple and logical proposition. confident. Generally. ill and post surgery patients on liquid diet have increased the customer segment. fruit juices have more to offer than just health. The increasing cost of health care has helped widen the customer base to the ageing population. the fruit juice industry will be challenged by these savvy. Pepsi’s Tropicana has tied up with equestrian sports and polo clubs to build bridges with the well-heeled young adults.
Convenience is no longer the selling point. The increased consumer interests in fruit juices can also be attributed to the addition of minerals. soy or omega3. there has been an increasing interest in more natural. traditional recipes like Aaam ka Panna and jamun variants have been introduced in the market. longevity and enhanced quality of life. other juices such as grapefruit. consumer health 19 . vitamins and herbs associated with health. Among the market drivers are the increasing cost of healthcare. watermelon and orange-carrot combination are also appealing to some. organic products. flavor is the deciding factor. the fruit market is very lucrative. minerals. companies like PepsiCo. some youngsters love to drink only carbonated soft drinks. Thus. While orange. ethnic group and other factors. There are niche customers who take juice as a part of their diet and do not bother about the taste. Consumers perceive this as the next best thing to having a fresh fruit. premium products and produced with added vitamins. taste. have developed preservative free fruit juice offering consumers with a great taste and wholesome nutrition of freshly squeezed juice in hygienic and attractive packs. • • Conclusion: Product development and positioning will need to become more targeted. ageing population. They are designed in such a way as to fit in the Tiffin boxes. However. However. In order to match the traditional taste buds. Further. vigor. fibs.In order to attract the kids segment. despite of health benefits. Moreover. • For many consumers. the naturalness is.. the Tetra packs have animated fruit characters which communicate the fun. some companies have developed carbonated fruit juices which do not contain caffeine and caramel coatings that are harmful to health. Thus. There is a niche which is now demanding more top quality. shifting from mass market to a mass customized approach in which particular audiences are identified by lifestyle. as they feel it has preservatives and are not fresh. Thus. the parents can give their children a portable beverage that is a healthy alternative to the nutritionally bankrupt soft drinks. apple and mango dominate the market. there are certain consumers who are wary of packaged food. Dabur Foods Ltd. and nutrition aspect.
awareness and choice and scientific evidence of certain ingredients. Details of Actual work undertaken 20 .
It offers a trade down margin of 15% in addition to additional scheming that can go up to 5% for Traditional Trade.P 75INR cost 65 INR to Retailer generates a handsome margin of 9.R.10 65.M. Margin of Distributor is 5%.78 So a 1L pack of Tropicana with M.Tropicana-Impulse Buy PepsiCo sees Tropicana as an Impulse buy in India hitherto and not a planned purchase. Tropicana: Extremely Lucrative product for Retailer Being a great health product for consumer it is also a very lucrative product for retailer as well. name of Tropicana Juice is never mentioned in the shopping list. soap are planned purchase. So on selling 20 cigarette retailer generates a revenue equivalent to selling 1 L Tropicana. So a Wills Navy cut Cigarette costing 5INR generates margin of 50paisa to retailer.7 INR.R.21 75 9. For easier assimilation look at the below table Tropicana 1 L Cost Distributor Cost Retailer Cost Consumer (M. So a sale of 100 INR retailers of 20 cigarettes makes the same amount from sale of 75INR Tropicana 1L.When a family is going to market for grocery shopping. It is only at the moment when consumer enters a shopping store and sees Tropicana he picks it up and buy. 21 . Aim of Tropicana Division In PepsiCo’s Gurgaon office is to make Tropicana a planned purchase rather than an impulse buy. F.P) Margin Retailer Price INR 62.C. Impulse buy means an unplanned buy . Aim of Tropicana division is to make it a planned purchase within Indian community and make it a part of consumer’s daily breakfast.G goods like tooth paste. So SHELF-VISIBILITY is an important facet for sales of Tropicana.
supermarkets. local mom and pop shops. such as kiosks. corner shops. Traditional Trade-Traditional Trade is defined as all that trade that flows through traditional outlets. etc. It represents all trade with the exception of that which flows through retail chains. open markets. or super stores 22 .Classification of Market: Delhi & NCR In Delhi Tropicana and Gatorade is sold in 3 trades 1.
etc. so they make their best to maximize the penetration at T. 23 . Modern Trade:. b) It is the prevailing form of consumer trade in emerging markets.T.Key Characteristics a) Traditional trade is characterized by a large complex regional brands. supermarkets.Modern Trade is defined as all that trade that flows through retail chains. c) It can be difficult to penetrate for both national and multi-national firms given its highly fragmented nature. yet it serve as the conduit for reaching the largest percentage of the consumer population network of independently owned retailers and distributors carrying primarily local or Importance of Traditional Trade can be very easily judged by the following data For Tropicana division Traditional Trade forms heart of their business. or super stores.
ft.T:-To much of the extent it is similar to M. Wal-Mart.Example:-Garg -Dastak. e) Discounting (and frequently passing it out to customers as well) f) Self Service with electronic billing and credit g) Example: Big bazaar. Reliance Fresh S.Big EzeeDay Apple.SRS . Needs (18 stores in Gurgaon .T but it may/may not have multiple chains of stores . but again safe to peg it at above 2500) c) Bulk Buying/ Inventory management d) PAN India Presence. as the minimum) b) SKUs above an index number (again.A. Market Covered Sector Covered 24 Number of Shops .M.Key Characteristics:a) Above an indexed covered area (different users have different indices but safe to say 3000 sq. Understanding Market Scenario:-Faridabad Initially to have a better understanding of how things work and to get doubt cleared we were instructed to meet Central Executive of Faridabad for two days. different for different users. .
28 29 30 Mom and Pop Shops Modern Trade
5 4 6 12 Vishal Mega Mart,SRS
a) Suburban City-Over 2 Million Population b) Generate about 60% revenue of Haryana State c) 50% I.T collected Haryana comes from Gurgaon & Faridabad
Learning’s: FaridabadUnderstanding Reporting Hierarchy and Responsibilities:One Central executive is responsible for execution of Tropicana in Faridabad. He leads a team of three P.S.R (Pepsi sales representative) and three merchandisers Before the morning visit start C.E talks with all P.S.R’s and list down progress of previous day, compares it with actual target and gives them the feedback. Also he asked for the current days plan and any issues being faced by them. Task of C.E is to execute so it’s his responsibility that Products are being executed in the market up 25
to the mark, sort out any grievance that P.S.R is having issues with, fix out pricing of Shop in Shop. P.S.R is responsible for taking orders; managing new customer base and merchandiser are responsible for doing visual merchandising on all the shops. Mode of transportation for merchandiser is bicycle and for P.S.R is motor cycle. Each P.S.R covers daily 30 shops and merchandiser 25 shops. Every P.S.R has a Tropicana route book. It contains the following fields
a) Name of Shop. b) Stock Details of Retailer c) Order Details –Previous Order Details, Current order details d) Replacements if any
This route book serves as input for distributor for order processing. Also data from all P.S.R is consolidated by C.E and presented to Area Sales manager.
Myopic Hierarchy View-Faridabad
This is a myopic hierarchy because it sees the market from a grass root level and deals with people that only interact with retailers on a daily basis.
Understanding -Merchandising/ Displays: Proper merchandising and display at the store level promotes sales; it promotes the consumer to switch over to the displayed brand ignoring existing brand loyalties; it persuades him to buy “now” rather than latter; and it makes him buy more than the 26
originally intended quantity. All these are essentially sales promotional functions. While advertising can only make a consumer aware of the product or generate a desire for it, merchandising/ display often motivates a consumer to buy a product instantly. Point of purchase displays are one of the most widely used sales promotions tools. With the proliferation of brands, innovative displays have become a prerequisite for success. In the store brands compete with each other for consumer’s attention. Display Enhance Counter Pull Display at the point of purchase can be rightly describe has a “clincher” in the marketing process. When awareness and interest has been created in the consumers mind through advertising and other promotional measures, a good display in the store can help to clinch a sale. The displays are also effective in inducing brand switching. A consumer normally goes to a retail outlet to purchase his usual brand. At the retail outlet, a good display of a competition brand can command his attention and he may buy the competing brand. In other word Good display can lead to impulse buying and brand switching. A good display is the surest way to attract the consumers. It pulls the consumers to the consumers. In fact, displays have their origins in the age old saying that “goods well displayed are half sold”. Display can be of various types- window display, wall display, counter display, aerial display, or floor display, depending on where it is fixed. Display materials to constitute a large spectrum, like posters, danglers, stickers, mobile wobblers, steamers, balloons, etc. To enhance the display effect, manufacturers use several gadgets and approaches. Illuminated designs, motion displays, sky writings, etc., add to the display effect. Some companies organize display units locate them at vantage points within the store to attract store traffic. Skillfully designed and strategically located display units can enhance the sales appeal. More and more firms are going in for innovative displays to give their brands visibility.
There is one distributor that serves entire Faridabad region. Along with Tropicana he also deals with other products of Godrej Ambi Pure, Parachute hair oil to name a 27
few. Distributor is appointed by the company and following points are taken into consideration while appointing a good distributor.
a) Distributor needs to have good market reputation and links. b) He should have good infrastructure to carry out day to day operational activities-distributor must possess a warehouse, vehicle for delivering order and manpower who can work as P.S.R and Merchandisers. c) Other products that distributor sells also plays an important role and tells about reputation and worthiness of distributor.
Salary of P.S.R and Merchandiser is paid by the distributor that later is reimbursed by the company, .P.S.R and Merchandisers are not on company pay roles. It must be noted that it is the Distributor and P.S.R who sells the product and not the Company official. So an assiduous distributor is required to ameliorate the product.
Understanding Mechanics of Distribution Channel
The supply chain of products in the FMCG market in India is one of the longest supply chains an industry could really have. There are as many as 5 levels of intermediaries involved in the entire supply chain through which a product passes before reaching the end consumer. What has been observed is that even though these FMCG companies are big multinationals and Indian but face a major challenge of making their products available in the market in the right quantities and in the right time. This is simply because these companies don’t really have a wide network of sales agents and other force which is required and is ideal for catering their products to the markets. This aspect is taken over by distributors, wholesalers and retailer whose margins on these products actually double the price of these products when a final consumer buys it. The margins kept by these intermediaries range from 2% to 5%. The products in this industry are transported from manufacturing units via c & f agencies or warehouse to distributors who further sell the same to wholesalers or stockiest who finally sell it to the retailers in the market. These products are 28
transported either via roadways or railways within the domestic markets and normally don’t take more than a week to reach the retailers. The supply of products takes place virtually on a daily basis in fixed quotas or otherwise. Since it’s a volume game. if any. fortnightly and monthly basis to determine the trend in the business and flow of products and consumption. to retailers as per their requisitions and the anticipation of demand and the performance of products in the recent past. weekly. A close check is maintained on the flow of the products on a daily. manufacturers make all possible efforts to boost sales and promote their distributors to earn more and more orders from the retailers and wholesalers. FMCG products are normally a high volume ball game and products have to essentially be available in the market at all given points of time and at all given points of purchase and therefore the distribution activities are highly volatile and dynamic. 29 . This activity also helps to find out drawbacks of the distribution system. and rectify them within time. All such criteria are taken into consideration before the quantum of products being dispatched to the next level of intermediary.
From Pune goods are supplied to Carry and forward agent . Distributor further can sell the goods to retailers or wholesalers.Distribution Cycle-Tropicana and Gatorade Factory Carry and Forward Distributor Modern Trades Wholesalers Retail Trade Consumers Tropicana is manufactured in India in Pune. 31 .Spencer 2) C&F Agent send it to distributor.Carry and forward agent furthers supplies it into two divisions:1) C&F Agent directly send the goods to Modern Trade like Big Bazar .
2) Retailers receiving goods directly from company’s distributor can sell goods to consumers.1) Wholesalers further sell goods to retailer which then is received by the consumers. Advantages of purchase from Companies Distributor over Wholesalers. 32 .
33 .Distributor Web in Delhi &NCR (Faridabad & Gurgaon) So there are total 12 distributors doing business for Tropicana.
some places are lying vacant and some places are densely populated.T offers Tropicana at Rs 60 where as T.O. but since it’s a growing depth of Tropicana can be grown.P material needs to be done.Population is unevenly spread. People are buying Tropicana and scheme of one glass free is doing wonders for company. Since. hotels. 35 .T is selling the same thing for Rs 75. means more cases can be sold. private organizations are mushrooming in the city.Width wise coverage is excellent and the company is working on the concept of depth. so there lies a big opportunity for Tropicana to sell. So customer awareness is lacking Since Faridabad is a growing city many educational institutes. It implies that number of shops covered is healthy. Consumer trends differs according to areas (sector) Counter's Infrastructure & Stock Holding Capacity differs according to the areas Also consumer still think of Tropicana as imported product and very few people know that it is a product of PepsiCo.T Visual merchandising needs to tighten up .Faridabad Market:Faridabad is a developing city . A M. But places where Modern Trade and Traditional trade are located nearby concept of cannibalization can be seen.So consumer prefers to go to M.Attractive merchandising are missing Proper Utilization of P.T rather than T. it is a growing market retailers are very friendly . In sector 28 there are line of shops that only keep Tropicana and not Real.
O. and East Delhi to the east across the Yamuna. New Delhi to the south. Faridabad is like a ticking time bomb for Tropicana that is still to explode and is area of immense potential. It is bounded by the Yamuna River on the east and by the districts of North Delhi to the north.759 persons per km². 36 .W.S. and an area of 25 km². Central Delhi has a population of 644. West Delhi and South West Delhi to the west. Delhi's principal mosque.T analysis of Faridabad Tropicana Market So. Central Delhi houses the central business district and high-rises. and is home to the monuments like the Delhi Fort and the Jama Masjid.005 (2001 census). Survey Details: Area assigned to me was Central Delhi. Area Details Central Delhi is an administrative district of the National Capital Territory of Delhi in India. It includes Shahjahanabad (Old Delhi) which served as capital of the Mughal Empire. with a population density of 25.
EastPatelNagar.Birds Eye View-Central Delhi Coverage Areas-Finding Tropicana Gaps Areas given below were covered to find market gaps S.SouthPatelNagar Old Rajinder nagar Sadar Bazar Pahar Ganj Gole Market Jhandewalan Shadipur Pahar Ganj Questionnaire Details for Tropicana –Central Delhi 37 .No 1 2 3 4 5 6 7 8 9 10 11 Area Name Chandni Chowk Karol Bag Canaught Place Patel Nagar –WestPatelNagar.
2) Real present:-: This tells about competitor’s availability. 38 . 3) Tropicana present:-: This tells about Tropicana’s availability. Also can be used for future purposes.Enables speedy communication for business transactions and concerned business related exercise. Address and contact number of shop: .Serial . 4) Real Facing:-It implies how many packs of juices are kept on the shelf of retailer. become a reusable component for the organization.No 1 2 3 4 5 6 7 8 9 10 11 12 13 Fields of Questionnaire Name of Shop Address Contact number Real Present Tropicana Present Real Facing Tropicana Facing Real Stock Tropicana Stock Tropicana PSR present Gatorade Powder Present Visual Merchandising Estimated Consumption(week) Data to be filled Shop Name Shop Address Phone number Yes/No Yes/No Number of facings of Real Number of facings of Tropicana Estimation-Real Stock Estimation-Tropicana Stock Yes/No Yes/No Excellent/Poor/N.A Cases consumption in a week 14 Issues/suggestion Feedback retailer/surveyor Survey Form-Explained Logic & Underlying Need 1) Name.
It is commonly noticed that P. Task allocated to me was to cover the traditional Trade of West Delhi that o not poses a good picture for Tropicana Division and the same fact is evident from the survey done on the same region. it act as a value add for Tropicana sales and become critically important as Tropicana is considered an impulse buy. Also it tells about how big is the share of eyeball of customer with respect to Real 6) Real Stock: .. so with ever increasing population new shops open up in the reason.Competitors judgment of stock. It is a hypothesis that for every 250 people there is one shop. 10) Visual merchandising: Check if merchandising done properly or not. Good number of Real facing display implies good sale of Real at that shop. suggestions by retailer or any other issue noted by surveyor.R are reluctant to visit new shops and keep on sticking to the old route plan that they have.Aim of PepsiCo is to make sure that where 1L Tropicana is present. 39 .. 9) Gatorade Present:. 7) Tropicana Stock:-Used with information of Real’s stock to know competitors status. Facings of Tropicana are compared with respect to Real to guesstimate sales with respect to each other.S. So this tells about the un –explored avenues for selling our product.R visiting newly opened shops in the region or not.For every 8 facings company gives a scheming of 4% to retailer after 3 months. Sales exercise:Third phase of the exercise was to use the knowledge calculated from Phase 1 and Phase 2 of the project and get some hands on experience with Sales. A good merchandising is vital for healthy sales. 8) Tropicana PSR present: .Company pays a price to retailer for good display.This will tell that is P.any particular issues seen/observed. there must be one mono carton of Gatorade present too . If stock is less than judgment then we can pursue retailer to purchase more stock 12) Issues/Comments: . This tells the real picture about how merchandisers are doing their job.S.This is a classic example of cross-selling and it checks with how much efficiency their workforce is carrying out cross selling exercise. 11) Estimated Consumption: By seeing Tropicana stock we have to judge their estimated weekly consumption. 5) Tropicana Facing: .
example mono cartons for Gatorade.near bikaneri sweet(land mark-metro pillar number 935009 4275 Name of Shop Address Contact Numbe r 987170 4070 QuantityGatorade 2 Monocart on-(1 orange+1 lemon) 9Monocar ton-(3 orange+6l emon) 0 0 686.MainNaj abgarh road.Uttam 2 Madan store nagar Prem nagar. This used to serve the following purpose.30 piece 200ml.6 1830.D Gatorade Powder Quantity-Casing 1L.34 QuantityTropicana 1 case-100% Billing(Tropi cana) 800 Billing(Gat orade) 152.9 469.T. No 1 Maa Durga Store A22.T.24 mono carton (1 mono carton -6 sachet) Margin 15% 15% 15% 15% 10% 18% Price-Casing 887.30 piece 500ml.Products to be sold were Tropicana and Gatorade(R. a) Give distributor the order received from market.12 piece 1L.24 bottle 35 g.0 782.5 Scheming 1 carton free with 1 case or 8-10% 1 carton free with 1 case or 8-10% 1 case free with 5 case 1 case free with 5 case 1case+2 bottle free 1case+1 Monocarton free Sales Progress:S.5 573. c) To get acquainted with distributor activities Pricing of Tropicana and Gatorade Price-Case Tropicana100% Tropicana Nectar Tropicana 100% Tropicana Nectar Gatorade R. b) Calculate samples of product.12 piece 200ml.52 40 .5 763.D and powder) We were instructed to start from Distributor Point every day.
Hari Nagar 281242 58 0 0 76. Behind Jail Road.uttam nagar 253735 665 1 monocato n-orange 0 0 76.Jail Road 921041 1097 6 Monocart on-(3 orange+3 lemon) 1 Monocart on orange 0 0 457.56 9 Mohan Medicos 104ganesh medicos 259916 44 1 Monocart on orange+2 rtd bottle(1 orange+1 lemon) 2 Monocart on-(1 orange+1 lemon) 0 0 139.02 76.52 41 . Petrol Pump.DDA flats.hastal road.26 4 virdi communication Shop No1.ganesh nagar 259903 05 Present 0 152.26 6 Nirmal Medicos 931310 4016 2 Monocart on-(1 orange+1 lemon) 1 monocato n-lemon 6 Monocart on-(3 orange+3 lemon) 0 0 152.56 Nanu bakers 5 .hari Nagar 928996 1947 1case200ml+1 case1L 1252.88 10 Family bakery b85.682-83) 3 Maa gaba trading corporation wz154. Park.L block.Shiv Nagar.LBlock.sno1.52 7 Chaurasiya Pan Bhandar el-6.hari nagar CA19A. New Delhi Sl-1/3.26 8 Sindhi Sweet Present NA 457.
11 The body gear c-5.ganesh nagar 921222 3415 2 Monocart on-(1 orange+1 lemon)+3 rtd bottles 0 0 247.95 42 .
R covers 180 shops in one week. d) One P. a) PepsiCo follows the hypothesis that for every 250 person there is one shop to cater their needs. b) Population in Delhi is growing at the rate of 1.This helps the upper management to set the road map for future and also let them know how can they do more business. Estimation Exercise Table -Manpower Estimation 43 . So after doing market analysis across central Delhi next task was to estimate how many numbers of shops are present in regions covered in central Delhi where Tropicana and Gatorade can be sold. They are in dire need of skilled manpower. Tropicana department is following resource crunch. c) Data of census-2001 was used and current population was calculated with the above growth rate.For example if Tropicana wants to increase its sales by 70% then it is result of some kind of estimation done earlier in business.4% every year.S. A good estimation give other employees in the department feedback for their future tasks .Estimation Exercise Estimation plays a very vital part in business development . This data is then used by company for further recruitments. Similarly a yearly target of Central Executive of selling Rs 10 Crore juice is result of some kind of estimation that is done earlier by upper management. Following assumptions and facts were carried out while doing manpower estimate. After calculating amount of employees needed we have to find the associated cost with them and then find out how much sales will they be able to generate.
61 1. there should be 25006 more shops in the above stated areas that are still to be tapped in .08 3058.50 519930.33 998.07 15.60 547.50 525904.37 86656.S.55 87.30 25.71 1988.89 4.47 11151.30 189583.Area Population 2010 Shop covered 20 115 170 7 17 65 117 125 636 Shop covered -me 14 33 30 9 25 14 43 15 183 Ratio=population/shop Shop deficit PSR required 3.38 3947349. Ideal figure is 250 Tells how much unexplored shops are in this region Logic Name of area under calculation Shows estimated population 2010 This shows how many shops are there in this region Shops I covered Deciphering-Man power Estimation According to our estimation.72 339.98 4090.59 265863.45 15672.12 5.04 11.41 12379.1 6 733325.05 10.S.R covers 180 shops in one week so to cover 25006 shops we need 138 P.541 7096.03 5866.62 1909. Sales Forecast Estimation from Institutions This table shows immense potential in Institutions for Tropicana and Gatorade 44 .45 64.40 2808.21 33738.10.43 4573.60 138 Jhandewalan Gole+Cp Karol Bag Sadar Bazar Chandni Chowk Rajendar Nagar Patel Nagar Pahar Ganj Total 141928.006 Understanding Fields -Manpower Estimation S.63 741.R.No 1 2 3 4 Field name Area Population Shop Covered Shops Covered-me 5 Ratio=populati on /shop 6 Shop Deficit This ratio shows that one shop caters to need of how many people.Also we know one P.
5 case 200ml 40 cases RTD.0 0 Rs. 54.40. 2.5 case 1L 60 cases 200mL.2case powder Hospitals(2006) 140 50 cases 1l.580.6 case powder.Institutions Embassy Count 58 Estimated Consumption 1 month 20 case 1L100% Yearly Consumption Rs.1 case powder 60 cases 200mL.220.127.116.11.50 case 200ml.06. 6.83.0 0 Rs.52.46. 3.2 case RTd.17.00 Rs.1 case powder 25 Cases RTD.81.00 Rs.82. case RTD 4.5 case Gatorade powder. Psu Joint Venture 55 60 cases 200ml 100%.400.60 cases 60 cases 200mL.63.5 case RTd.10 cases 200ml.24.0 0 Rs.56.20 Rs.14.080. 5.00 Rs.040.664.0 0 Rs. 96.15 cases RTD.5 case 1L Offices relating Sports 11 Tourism and Hospitality Sports Complex Colleges Under Delhi University Government Establishments BFSI Cooperatives Educational and Training Cultural 21 20 8 93 72 4 16 83 60 cases 200ml 100%.42.00 Rs.5case RTD Hotels 72 00 60 cases 1L.0 0 Rs.200.0 0 Rs.19.600.220. 14.0 0 Rs.00 Rs.900. 51.240. 1.000.1 case powder 60 cases 200mL.case 10 RTD .400.2case powder 60 cases 200ml.5 case RTd.21.1 case powder 60 cases 200ml. 5. 16.47. 1.0 Private Engineering Colleges(IP 45 85 60 case 200ml.15 cases RTD.18.104.22.168 case powder.23.260.5 case RTd. 38.
80 46 .000. 2.96.84 4.61.university) Gymnasiums 750 20 case RTD. 21.29.5 cases RTD. 1.11.5 cases Gatorade Powder Total 6350 Rs.14.59.90. 00 Rs.5 cases powder 0 Rs.06 0.80 Schools 4862 40 cases 200ml.42.
From institutions we mean school. followed by 10% for gymnasiums and 7% from hospitals. School domination also helps company to form a stable customer base because children who are drinking Tropicana since their childhood will keep on using their services as they grow up.Understanding Yearly Sales Forecast:An institution is another dimension where lucrative business opportunity exists for PepsiCo. 47 . According to our estimate there is an estimate of 211 crore that can be generated from these institutions wit in one year.These are the places from where organization gets huge volume and since FMCG is largely a volume based industry they play a very vital role for business growth. A mammoth 67% of business comes from schools.gymnasiums etc.colleges. Tapping institutions is a major concern for Tropicana department and leaving any of the institutions means leaving lots of stones untouched and thereby not tasting a big amount of business chunk.
Interpretation and Analysis Market under Scanner:-Karol Bag Karol Bag:-Deciphering Ground Reality Karol bag.S.A Karol bag P. In W. 48 . 3% is the share of Real whereas a staggering 54% is a non juice market that in itself is a hidden opportunity to increase business of the Tropicana. Conversion of 54% non juice market into juice market succored by leadership of Tropicana presents Karol Bag as a place of enormous opportunities to “mint money” .making it present in only 11% of shops leaving out huge chunk of 89% of Tropicana present shops. that is a peak season for retailers want P.Gatorade is present in only 3 shops . Tropicana and Gatorade are completely missing from 7 eating joints in Gaffar Market located just on the road side.R arrives at 12 P.R to come in morning. Overall looking at the big picture a great execution and sincere efforts of Central executive make it strength for Tropicana. With Gaffer-Market nearby it also attracts a lot of customer. Since. It should be noted that Dabur’s P.R comes to take order at six in the evening.E. So there is a huge scope of improvement for Gatorade. Out of 16 shops where Tropicana is present .S. being a shopper’s paradise attracting high footfall of 2000 people a minimum to say presents a huge opportunity to Tropicana and Gatorade.M in those shops.S. 30% of Karol Bag has Tropicana Share.
Pahar-Ganj.Pahar Ganj:-Deciphering Ground Reality Tropicana’s Share is 46% in Gole Market. C.In spite of being available across the entire width showcasing definitely needs improvement Adding to it.6% is the share of Real whereas 21%% is a non juice market that in itself is a hidden opportunity to increase business of the Tropicana and at 27% shops both Real and Tropicana are present . C. Overall looking at the big picture a great execution and sincere efforts of Central executive make it strength for Tropicana that can further be strengthened. Gatorade and Tropicana were found absent from the canteen of Lady Harding medical college. Pahar Ganj Gole Market. Conversion of 21% non juice market into juice market. Out of 33 shops where Tropicana is present. presence of canteen of prestigious Lady Harding College combined with great visual merchandising succored by posh residence makes this region a ticking time bomb that is still to explode. 49 .P. Gatorade is present in only 3 shops . C.P.making it present in only 11% of shops leaving out huge chunk of 89% of Tropicana present shops.P . So there is a huge scope of improvement for Gatorade. Pahar Ganj Consolidated Data => Gole Market. .CP. In Shaheed Bhagat Singh market visual merchandising needs an overhauling . Tropicana’s complete range of 100% is missing from A-class counters.Market under Scanner-Gole Market.
Market under Scanner-Chandni Chowk Chandani Chowk:-Deciphering Ground Reality Chandni Chowk presents a very sorry picture for Tropicana and Gatorade. A positive point of view can convert this road block into successful business avenue for Tropicana if execution is done correctly and up to the mark with strong merchandising.S. 50 .Out of 25 shops P. There are many eating places here and Tropicana and Gatorade can be made parts of many stores around here So we can say Tropicana Division is keeping many stones untouched in this region. Staggering 80% is a non juice market with 12% real domination.R has visited only two shops which cut a sorry picture for Tropicana and Gatorade. Width wise and depth wise coverage of our product here lacks as Tropicana is found in only two shops . Chandni Chowk forms heart of Old Delhi and attracts a lot of people including many foreigners who visit daily with high brand awareness.
Both products are simultaneously available with 7% shops Mammoth 57% is the no juice market.Market Under Scanner-Jhandewalan Jhandewalan:-Deciphering Ground Reality Videocon Bhawan is the landmark for Jhandewalan. Gatorade presence is not felt anywhere in display except one shop. This area is special as it attracts a lot of educated and aware population due to presence of their workplace at this location Compared to real Tropicana poses as a winner but cross-selling of Gatorade needs big needs improvement as only 17% of Tropicana present shops are covered by Gatorade. 51 . banners for Tropicana were present. Visual merchandising needs a resurrection.T. similarly no danglers. Tropicana domination is 9% followed by real at 7%. shine boards. Merchandisers as well as salesman need to pull up their socks in this region to explore its potential. Eating joints near cycle market and Videocon Bhawan are a good place to do some major business of Tropicana 200ml and Gatorade R. Gatorade only covers 17% of all available shops for Tropicana leaving a massive 83% shops untouched.D.
Market under Scanner-Sadar Bazar 52 .
Tropicana is physically absents from all shops though there are many locations where it can serve as hot cake. Survey also reveals that people are interested in buying Tropicana and Gatorade but No representative of Tropicana division visits here.So we can say Tropicana Division is keeping many stones untouched in this Sadar Bazar. Sadar Bazar is very famous part of old Delhi and attracts lot of localities as well as tourists with high brand awareness. This place can also work as Great Avenue for selling juice in festival season.Sadar Bazar:-Deciphering Ground Reality Sadar Bazar on the footprints of Sadar Bazar presents a very sorry picture for Tropicana and Gatorade. A positive point of view can convert this road block into successful business avenue for Tropicana if execution is done correctly and up to the mark with strong merchandising Sadar Bazar can reap benefits for the Tropicana division. 53 . Every day it attract a huge footfall of not less than 7000 .
With residential areas in the vicinity and common middle class with increased spending power coming here. Also cross selling of Gatorade needed to be pushed. Out of 16 shops covered P.R has not visited 12 shops clearly telling the reason of Tropicana lagging behind.Market under Scanner-South Patel Nagar South Patel Nagar:-Deciphering Ground Reality Scenario of Tropicana domination comes to a halt at South Patel Nagar. Real share is huge 44% when compared to Tropicana’s meager share of 12%. this area possess a very lucrative market with enormous potential for rise of Tropicana and Gatorade.S.No juice market comprises of healthy 31% with both products being present at 13% shops. Visual merchandising is good here but can be made better . Gatorade has acquired 25% shops and it still have to cover 75% of uncovered Tropicana stores. 54 .
Visual merchandising is great at this place with two shop in shops also found.. Retailers are facing issue of delay in supply of Gatorade R.T. 55 .Both are present at 53% shops and meager 4% no juice market. filling the gaps in the supply and growing width wise is the key to success in the above mentioned area. With affluent and highly aware customer base living in the vicinity this market poses a huge potential for Tropicana and Gatorade. Just 4% of no juice market corroborates the statement that this place is a great place for the Tropicana and Gatorade y.Market under Scanner-East Patel Nagar and Rajinder Nagar East Patel Nagar and Rajinder Nagar-Deciphering ground reality Above avenue present a great avenue of business for Tropicana and Gatorade. Tropicana is leading the area with 29% exclusive availability with real having around 14% exclusive availability at the stores .Keeping retailers happy.D (ready to drink) . Gatorade needs to push itself more in terms of cross-selling as currently it is covering only 23% of Tropicana available shops with 77% untouched.
These new outlets will also make product visible across the entire market. 56 . A staggering 50% of market is no juice market.Market under Scanner-West Patel Nagar West Patel Nagar-Deciphering ground reality In West Patel Nagar market real’s is exclusively available in 14% shops and same stands true for Tropicana. Gatorade id present in only 17% coverage area of Tropicana shops. With both competitors equally balanced one who will convert the 50% non juice market into juice market will emerge as the winner. Both of them are together present at 22% of shops. West Patel Nagar market is a great example of traditional trade and successful execution with powerful merchandising over here l enable access to whole new customer base and new opportunity for their evergrowing business.
Interpretation and analysis for Sales Exercise We were able to sell 33 mono cartons of Gatorade. 57 . and 2 cases of Tropicana and open 11 new accounts.
a) After visiting West Delhi brief was re instated that there are a lot of market gaps in execution of Tropicana and Gatorade. b) Visual merchandising needs to be resurrected in this region to have a higher share of eyeball of customer.So yearly sales come out to be Rs 2Lakh app.T. 58 .18896 Rs.D of Gatorade to Gym (not a huge amount for gym with footfall of more than 100 a day) and 5 mono cartons of Gatorade ensures a monthly sales of Rs 15268 and for mono carton amount is Rs 1520. a.226752(Rs 2.26 L) d) The body gear gym can do wonders for the sales of Gatorade and gives us an idea that Gyms are the perfect place to sell Gatorade and generate lot of cash for the firm. If one in one week we are able to sell 5 cases of R. c) Clients are not aware of Brand Gatorade and most of them don’t know that it is a quality product from PepsiCo Monthly Sales All Shops Yearly Sale-11 shop Rs.
g.Competitor beverages Margin Analysis:Competitor margin analysis is very important from Tropicana’s division point of view.R.P(Trader Price) 6 T..g. This exercise is very exhaustive as retailers are reluctant to tell the trading prices to anyone. Parle Agro 59 . Frooti Quantity of product –e.g.g.No 1 Field Company Name 2 3 4 5 Product Pack Size M. 1 bottle free with one case/additional discount in terms of percentage Margin of Distributor in terms of Percentage Price at which distributor receives the product Margin of trader in terms of percentage About product of company e.M(Trader Margin) 7 Distributor Landing 8 Distributor Margin 9 Scheme Schemes offered with cases to traders/distributors e. Similarly it is a daunting task to find out distributors of all the competitors.P T. This enables them to keep a track on competition with latest findings. 200ml Maximum Retail Price Price at which trader receives the product Underlying Reason Name of the company e. Understanding Questionnaire-Competitor’s Margin:S.
11 DM 6.50 % 13.00% Schemes volume based volume based 1 peti+1 pack Appy fizz 1l Company Name Rasna Category Rasna Pack Size 200g m 5gm Pack Size 300 ml 500 ml 2L MRP 35 TP 32.14 42.0 0 TM 14.73 62.89% 8.37 1.05 14.2 2 TM 15% 15.00% 8.00 % 4.9 0 63.00% Scheme s Company Name Coca cola Catego ry CSD 2 MR TP P 12 23 60 10.6 8 18.00% 8.00 % 4.91 69.40% 10.8 TM TM 10.0 0% 15.60 41.00 % 3.4 51.Traders and Distributor Margins Company Name PI Categor y Juices Pack Size 200ml 100% 200ml ROR 1ltr 100% 1ltr ROR MRP 22 18 85 75 TP 19.00% 6.19 39.81 60.00% 5.1 3 15.00% 6.00% 5.00 % 11.00% 10.05 21.00% 5.00 30.0 0% 15.0 0% Distributor Landing 18.00% 5.00% 6.9 1 65.2l 600 ml 2l 1l 400ml MR P 10 45 25 70 36 20 50 TP 8.00 % 60 .00% Scheme s 5% 5% 5% 5% Company Name Parle Agro Category Frooti Pack Size 200ml 1.17 17.00% 5.86 DM 5.00% Schemes 24 + two 3ooml bottles 24 + 3 bottles of kinley 9 + two 500 ml bottles 12.0 0 45.6 5 73.00% Distributor Landing 30.00% 10.00% Distributor Landing 8.00% 12.0 0 22.68 DM 10.09 19. 5 20 54 10.0 0 31.5 1.9 DM 7.00% Distributor Landing 7.
00 % 24 + 2 CANS NCD SLICE 5OO ML SLICE 1.20% 4.40% 7.5 DM 4.505 9.00% sweet lassi salted lassi Nutrifit litchi Nutrifit ROR Full cream milk single toned milk Double toned milk Standard milk 300 ml 200 ml 100 ml 100 ml 1L 1L 1L 1L 12 7 11 10 30 23 20 18 4.2 12.00% 0.5 0 11.00% 5.10% Company Name Category Pack Size M R P TP TM Distributor Landing DM Schemes 61 .3 % Schemes 24 + 2 24+ 2 55.706 0 10.00% Company Name MOTHER DAIRY Category Chaach Pack Size 450 ml MRP 10 TP 9.25 L 25 50 23.508 6.802 TM 5.00% 24 + 2 12 + 1 15 13.8 0% 9 + 2 600ml bottles MY CAN 15 13.6 47 5.50% 5.82 22.60% 24 + 1 bottle of Nimbooz & 1 Aquafina 12 + 1 50 47 6.80% 1.7 5 56.25 L Nimbooz 350 ml Nimbooz 1.Company Name Pepsi India Categ ory CSD Pack Size 300 ml 500 ml 1L 2L MRP 12 23 32 60 TP 11 21.816 19.60% 6.8 17.60% Distributor Landing 10.10% 4.6 TM 8.5 0 29.60% 0.7 8.00% 1.1 2.7 5 29.30% 5.
9 10.60 % 22 13.00% 9.5 48.2 5 15.3 36 12.18 5.00% Distributor Landing DM Schem es Westin Mineral Water 1 ltr 58.3 200 43.10% 62 .33 22. 1 5 TM 9. 80 % 3 bottles on case Camp Beverages Pvt.91 % 8 % 3 % 8. 25 % 38. 37 373.25 22 .29 9.8 5.6 53.PepsiCo Aquafina(min eral water) 1L 13 11.75 5.1 18 % Del Monte Juice 240ml 25 21.20 % Parle Agro LMN 200m l 12 9 25.50 % 2 appy fizz on 30 pieces Company Name Nestle Category Lactogen ( Tin packing) Pack Size 500 gm 1000 gm MR P 20 7 41 0 12 TP 188. 00 % 5 10. Ltd refreshers 500 ml 1L 2L 12 9.30% 4.40 % One bottle one case One bottle one case One bottle one case 30 50 27.09 % 10.5 4 12.3 0% McDowell Mineral Water 1L 12 5.3 9.00% 20.7 0% Royal Crown Cola International RC cola 300m l 600m l 12 9.52% 34. 40 % 8.00 % Kissan Kingfisher Squash mineral water 700ml 1 ltr 95 12 85 7.69 3. 00 % 8.
55% 4.8 10.00 % Mehsana dist.70% 5.00 % 20.00% Gopalji Milk 200ml 15 10 33.6 104 20% extra 20% extra 20% extra 20% extra 10% extra HEINZ Orange D 100 gm 200 gm 500 gm 1000 gm 25 46 101 175 20 36.00 % 19. Coop.50 % 25.20% 10.00 % 20.00 % 97.70% Coke Kinley 1 ltr 13 11.33 % 9.8 80.6 65.00 % 20. 65 9.80 % 20.8 63 35 11.2 3.Company Name Amul Category Pack Size MRP TP TM Distributor Landing DM Sch eme s 6+1 Cool Café(milk) 220ml 22 19.2 5 1.3 3 HEINZ Glucon D 100 gm 200 gm 500 gm 1000 gm 20 37 82 130 16 29.00 % 12.6 4.00% Mapro Bisleri Squash mineral Water 700ml 20l 5 ltr 1 ltr 99 70 40 15 97.8 140 20.00 % 12.00 % 20.00 % 20.00% 63 .31 60 33 0.00 % 20. milk producer union Amul powder 500 gm 115 104.
1000 gm 222 202.00% 64 . 02 9.
00 % 5.0 0% 5.00 % 26.5 0 70.50 % 5.50 % 8.00 % Schemes 8-20% 1+1(prom otion) 4-10% Kraft Foods Tang pouch 500g 4 80 75 85 12 0 75 85 85 Cloud 9 Juice 1I 1I HALDIRAMS KHUS 700 ML 84.43 10.00 % Distributor Landing 56.0 0% 15.Company Name Surya Fruits & Agro TUNIP AGRO LIMITED KDD Category Freshgold Onjus Juices Pack Size 1l 1l 1l M RP 70 10 0 75 85 TP 59.50 % 30.67 80. 91 TM 15.5 0% 7.60 % 1-5% Heinz Glucon D 1kg 500gm 100gm 17 5 82 25 149.50 % Findings of Study:65 .00 % 18.50 % 5.00 % 18.50 % 12.75 % 12.00 % 5. 50 85.95 58.00 % 15.50 % 15.57 66. 00 52. 5 59.00 % 582. 15 11 73. 5 91.00 % 10.95 12.5 73. 8 22.33 66.67 DM 8. 00 61.38 3. 50 69. 6 157 .00 % 7. 70 3.00 % 5.00 % 12.28 69.95 21. 5 95.80 g 350ml 350 ml 10 68.43 68.00 % 30.13 5.32 5.00 % 22+3 1 case + 1 hamdard Roohafza 1I 10 5 96.00 % 10. 91 73.0 0% FDC ELECTROL RED BULL normal RED BULL sugar free 21.00 % 10.
Paharganj.Findings of Phase 1 of Project Summarized data s for Central Delhi is as follows Area OutletCovered South Nagar Sadar Bazar Jhandewalan RajendraNagar.E ast Patel Nagar West Nagar Karol Baag CP.G olmarket Chandani Chawk Total 25 169 3 23 0 39 2 48 0 17 20 59 30 33 1 2 9 15 16 9 3 3 4 7 Patel 14 2 2 3 1 7 9 14 28 2 1 5 0 4 7 0 1 15 0 1 8 7 8 1 Patel 16 Real Only 7 Tropicana Only 2 Both Present 2 Gatorade Present 1 No Juice 5 Consolidated Graphical Findings –Central Delhi 66 .
no 1 2 3 4 5 6 7 8 9 10 11 12 Area Covered Ashok Nagar Hari Nagar Rajauri Garden Fateh Nagar Tilak Nagar Ramesh Nagar Uttam Nagar Vikaspuri+Bodella Asha Park Janakpuri Moti Nagar Kirti Nagar This data was collected by other team members 68 .Findings Consolidated –Central Delhi Below are the consolidated findings for Central Delhi Consolidated Graphical Findings West Delhi Areas Covered –West Delhi S.
Sec 15 Rohini .Sec 7 Outram Lane Hakikat Nagar Hudson Lane Kingsway Camp Roop Nagar Ghanta Ghar Sabzi Mandi 69 .No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Area Covered Kamla Nagar Vijay Nagar Parmanad Colony Gujrawala Town Munshi Ram Model Town II Model Town III Model Town I Derawal Ashok Vihar Deep Market Shalimar Baag AL Market Kohat Enclave Peetampura Mukharji Nagar Nirankari Colony Rohini.Consolidated Graphical Findings-North Delhi Area Covered-North Delhi This data was collected by team members.Sec 8 Rohini.DDA market Rohini. S.
29 30 31 32 Rohini.Sec6 Rohini.Sec9 Consolidated Graphical Findings-East Delhi 70 .Sec 3 Rohini.Sec11 Rohini.
Areas Covered-East Delhi S.No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Area Covered Anand Vihar Dilshad Garden Karkarduma Nirman Vihar Pandav Nagar PatparGanj Madhu Vihar Chandar Vihar IP Ext Mayur Vihar Preet Vihar Shakar Pur Savita Vihar Seelam Pur Vasundhra Enclave Vivek Vihar New Kundali Lajpat Nagar Amar Sarai Julena Ph2 Mayur Sarita Vihar MV PH3 Shrshtha vihar New Ashok Nagar Findings-Estimation Exercise 71 .
We were allocated Unified Distributor that is hardly 1 km away from Hari Nagar Metro Station.S.R while they go to deliver the product 72 . Diversification in Business Other Companies Products that Distributor Have Kept:- Infrastructure:Distributor possesses the following infrastructure a) Vehicles are required for delivery of goods. b) Computer operator is responsible for generating invoices of orders and doing other administrative tasks relating to accounts of Distributor. d) Helpers act as drivers and assist P. c) Minimum base quantity Storage is Rs 2 Lakh set by PepsiCo.Finding Distributor details:-Unified Reaching Distributor Point:There are 2 distributors for west Delhi.
So let’s look at the major expenses of Distributor:- So in one month distributor spends around Rs 83500 as expenses Dissatisfied Distributor:- Distributor at unified is not happy with the business for the following Reasons. Both of them had an online system where orders can be taken online for delivery. Lack Of I. Also it is clearly know that which 73 .C.FixIT.M.Expenses of Distributor:Being a distributor in F. There are lots of expenses that distributors have to keep account of . 1. discount is automatically generated while entering the required order as well as generating bills online.T Support from company:-Distributor also deals with products of company like 3M and Dr.G industry is not a easy job.
74 .distributor is supplying which part of the state so crossing of defined regions do not take place. Lack of such application from PepsiCo slowdowns the functioning of distributor and causes inconvenience to him.
1. sampling amount. Reimbursements are very slow .Lack of credit period clearly puts burden on him.S. 75 . So when distributor buys from company he has to take entire goods on cash . Replacement policy of company states that goods will be replaced when they accumulate up to price of Rs 50000. 3. Company is not giving credit to distributor. scheming discount takes up to 4 months to clear.Salaries of P. This blocks the amount of Distributor. Distributor had blocked money of 4L still pending to be approved for the month of March-2010.R. 2.
S.R goes to a store four times in a month for order then total sales will be 110400INR(1.T.only 23 shops in Central Delhi have kept only Real ii.10L) v.S.24L).D (ready to drink) cost to shop keeper 550INR(app) iii.Monthly sales will be Rs92000 v.So sales from 23 such stores:-27600INR iv.Implications of the Study Implications for Phase 1 a) Tropicana Division of PepsiCo is doing a good job in Central Delhi but there is huge scope of improvement in terms of market Share . According to survey conducted Gatorade should have been present at 89 stores.P. Looking at the analysis done below:i.95 L INR) v.R sells one case Tropicana 1L and one case Tropicana 200 ml at one such store it will cost 1200INR(app) iii.If a sales man sells 3 mono carton each of both flavors of Gatorade and 3 R. Total 59 shops are classified as no juice market. iii.So weekly sales will be Rs23000 iv.Clearly large chunk of sales is being hampered due to untapped shops. ii.So in one year sale will be 1324800INR (13.Yearly sales will be Rs1104000(Rs 11 Lakh) 76 . P.Yearly sales from 89 shops=2345328(`23L INR) c) Conversion of 35% no juice market into juice market will help company increase its value. Due to this sales is getting affected: i. i.If P.So weekly sales from 89 shops=48861INR iv.Monthly sales from 89 shops=195444INR(1.S.R is not making existent clients aware about Gatorade. According to survey . ii. If Tropicana can crack 40% shops(23 shops) and place goods worth Rs 1000 over there. b) Cross-Selling of Gatorade is not being done assiduously.
R’s are not discovering newly opened outlets. a. Say one case of Tropicana 100% is being placed at each of the counters then weekly sales will be Rs 8001920(80Lakh app). Most of the consumers don’t know that Tropicana is a PepsiCo’s product and consider it an imported product. Less share of eyeball of Customer is also affecting its sales. f) There is total lack of awareness about Gatorade. c.Five Star Hotels .R are not up to the mark. b.2Crore app) d. Gymnasium’s.Actual amount will post incremental growth to their business d) P. shop deficit and resource crunch has been identified –so there is certainly some hidden business that will be generated Tropicana and some remuneration that will have to be given to human resources.S. This sort of shortcoming in the Peak business season is not good for the business. So monthly sales will be 32007680(3. So we can say Tropicana clearly needs to work on 80-20 rule.This figure is only for the sample data . e) There is very little awareness about Tropicana in mind of customer. If Tropicana is able to crack 40% of the above existing shops (10002 shops) then there will be incremental growth in their business. k) Complete range of Tropicana is missing from many stores. l) Soft Skills of P. 2) Shop Deficit-25006. Thereby yearly sales will be 384092160(38 Crore app) e. Despite being present in Indian market for a long time most of the retailers/consumers are not aware of the product. i) j) Due to movement constrains of merchandiser on bi-cycle his span of shops covered is also hampers Tropicana is not being sold in many institutional areas-like eating joints . If only one mono carton of each flavor of Gatorade is kept at these new shops weekly sales hit a amount of Rs1520304(Rs 15.S.Being an impulse buy merchandising plays an important role in selection of Tropicana by the customer.2Lakh) 77 . h) Similarly visual merchandising for Gatorade is also very poor . Implication for Phase 2:1) Since. g) Merchandising is not up to the mark in Central Delhi .So from above calculation we can say Tropicana and Gatorade are closing their eyes on sales of 47 Lakh yearly from Central Delhi from current operational plans.
R Rs12636000(1.R Rs 1.R.R Rs 1053000 c.R Rs 9000 b. Similarly yearly sales will shoot to Rs18243648 (Rs 1.So openings are for 16 C. a.S.S.08Lakh d.S. Same stands true for a new Product like Gatorade mix. Tropicana had 19 P. Dabur’s Real-Edge over Tropicana 78 . Hitherto Tropicana Division had 14 C. 6) One Area Sales Manager handles around 4 Central Executive.E 5) Assuming Central Executives hired are of Level 1.A b.S.8 Crore).M as there are already 3 Area sales Manager.T. Sampling at shops is a good way to sell your product.E .26 Crore) 4) Assuming One Central executive handles 4 P. So there need to be one more A. Yearly Salary of one P. Attrition rate of distributor is not a good sign for the product. Client gets first hand feel about the product and don’t forget it easily even in case if he is not buying it.S. It is the distributor who sells the product in the market.E is Rs 32Lakh.R so we need to hire 117 human resources.R so Tropicana needs to hire 30 Central executive.E Rs 2Lakh P.T.C of one C.S. Frequent attrition makes a parochial outlook for Tropicana and that is why it is lacking in terms of sales. C.This is the biggest reason why reason why Real sells like Hot Cake.S.S. 3) According to manpower and resource estimation we need to have 138 P.C of one A. 2.M is around 6 Lakh P. Same is the case for west Delhi . increase value for the company. a. So keeping distributor happy by giving him succor from companies side will reap benefit for the customers and hence.In past 2 years 22 distributors have changed where as in the same region Distributor of Real is selling their products for the last 11 years . C. Yearly salary of one P. Yearly salary of 117 P.64Crore) Implications:-Phase 3. a. 3.S. In hand Salary of one P.A 7) Total Amount comes to be 16436000(Rs 1.f. 1. Yearly salary of 16 C.
Dabur’s real have the first mover advantage in juice market whereas PepsiCo’s Tropicana is following the catching up policy. 79 . Dabur’s real has been voted super brand for three consecutive years which point out towards “MAXIMUM SHARE OF HEART OF CUSTOMER” whereas no such user support has been earned by Tropicana. Major selling is done by their super stockiest 2. 3.1. Dabur is operating in Delhi on whole sale business.
It will keep shopkeeper satisfied as his Merchandising will be done on daily basis and sales man will not have to hear about any issues regarding merchandising 9. Record of sales can be checked from distributor. 2. 7. Execute plan of estimation exercise to reap benefit of 38Crore Hidden Sales for Tropicana and Rs 1. Polish soft skills of P. Cover all the market gaps in order to take pie of hidden business worth 47Lakh INR according to sample size. 80 .S. 11. Pull up the socks and resurrect visual merchandising to increase share of eye ball of customer. Invest with in quality man-power that will reap benefits for the department. Work assiduously on Traditional Trade as it forms back bone of their business. Have a retailer competition where retailer who will sell maximum juice in month will get a prize. 3. offices. 8. 5. Motivate workforce to discover constantly growing new shops. 12. 4. Open more Shop in Shops in potential stores to increase customer base. Send PSR and merchandisers to market on same vehicle . This will ensure that store owner is motivated to sell the product to customer.Recommendations made 1. Motivate workforce to implement cross-selling for Gatorade. 10. schools. Tap in more and more institutes like hotels.R and make them more informed about the product so that they can educate the retailers better.8 Crore for Gatorade in one year. gymnasiums to implement 80-20 rule 6.
Price of knowing name of one shop turns out to be Rs20. in turn generating business and hence creating value for the customer as well as to the organization. This will also help them to properly utilize merchandising budget sanctioned from the higher management. f) Total 624 shops were covered by entire team.M can calibrate monthly targets of Central executives and set new monthly growths targets for sales in Central Delhi. Company can use this information to fill the gaps. g) By seeing the hidden sales of 7.So company saved money from this survey by effective resource utilization. c) They can give better training and motivate employees so that execution is enhanced and retailer’s knowledge about Tropicana and Gatorade increases.S. l) Working on keeping distributor attrition at a minimum bay will reap fruits for western Delhi.D. 81 . By seeing the margin of all the competitors PepsiCo can train its employees in such a way that they can enable a better negotiation as they already know at what price customer is getting the competitors product. e) Company can enhance the estimated data as they have better market knowledge and subsequently form future plans for their sales.74L). b) They can work on their areas /shops which act as soft spots in terms of visual merchandising to promote Impulse Buy from customer’s side. k) Competitors margin will let sales man know about customer’s proclivity for exaggeration.99 Crore T. d) Their customer relationship will improve by better trained sales men. If AC-Nielson charges 12Lakh only for telling names of 60.R has to do to achieve the target i) j) Distributor will generate more business and have to manage his day to day operational activity. For 14 fields amount rises to RS280 which implies one row of survey form costs Rs280 so price of knowing data of 624 shops comes out to be RS174720(1.This is the price of only for field in the survey form. This will also push up the cross-selling of Gatorade. h) On similar grounds he can see how many new shops an existing P.000 shops related to juice market then.Benefits likely to accrue to the company:a) Survey shows the organization market gaps.
2) Lack of retailer’s interest to answer the questions is also an important limitation.Limitations:It is well known fact that constraint and limitations are bound to be present in any study do this also has some limitation as:1) As the project is prepared for academic purpose it suffers for the limitation of the time and due to which an analytical study into all the strategies adopted by the organization was not possible. Proposed Implementation Methodology 82 . 3) Lack of knowledge of area has affected the research. 4) Retailers prevaricate sometimes and may give false and biased information 5) This report focuses on observations of one distributor only there might be other unexplored waves in the ocean.
13) Communicate with Production department to change the quality of packing material as it inflates when water from chiller falls on it in case of electricity breakdown.R to take orders. 15)For sales of Gatorade follow O.S. 12)Communicate with marketing team to introduce juice in smart food grade plastic bottles.O.S.S. 10)Fully utilize the P.R and merchandiser to cover a market on same day and ensure their seamless conversation.S.O.P material so that visual merchandising attracts customer to by the product. 3) Increase work force to cater newly discovered market. 14)H. 9) Send P. 5) Make a contingency plan. 6) Place at least one mono carton of Gatorade where 1LTropicana is present. 4) Make a target of discovering 15 new shops a month for P. 7) Place 1L Tropicana on all stores where 1 L real is present. 11)Communicate with marketing team to introduce packs of 500ml for Tropicana. This make consumer feel that pack is spoiled.R department should make sure that attrition rate is kept minimum for the sales department. In case if store owner is not willing to keep Tropicana sell him Gatorade Mono Carton and after some time when relations become solid sell them Tropicana too. 8) Give PDA to P.S -“ONE SHOP ONE SAMPLE” principal. 16)Give credit of 15 days to distributor to ease of his burden 83 .R and give them incentive if they achieve it. 2) Discover all the shops that are stated inside residential areas to gain access to whole new consumer base and new business.1) Cover all the market gaps and successfully place Tropicana and Gatorade over there.
enabling them to give order online. 17.17.T enabled web based application to distributor for stream lining process. b) Process of how business is done with institutes need to be seen. Suggestions regarding further scope of work a) Areas that were missed not covered under survey due to lack of knowledge of local market can be covered and their findings can fill marketing gaps. c) Effect of Tropicana/Gatorade Promotion on their sales is yet to be explored. Give I. 18. solving the territory issue faced by Distributors and further it will put transparency in billing and undercutting issues. d) Finding distributor landing price of beverages that cannot be found this time. Send one person to take replacement at the end of month from Distributor. a. then that request is automatically directed to concerned distributor hence. Work on replacement policy-send one person for replacement in one month at distributor point. That application can have a module where Logins are given to retailers. 84 .
More exposure to organizational behavior will certainly change the data. Similarly due to increased demand effect on C&F and Factory production can be worked onto in future. 85 . f) In estimation exercise some facets are untouched.e) Estimation calculated is soft on numbers especially for Gatorade. Work can be done on finding number of Distributors required to accommodate newly discovered gap.
in/economic%20survey/es %202005-06/.pepsico. 1) http://www./15. htm 4) www.References and Bibliography.ac.pdf 3) http://www.com 5) http://www.dailyfinance.ht m 2) http://delhiplanning.jnu.in/facilities/listofhospitals.com 86 ..nic.com/in2delhi/hotels.delhigate..
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