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SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF POST GRADUATE DEGREE IN MBA

TRAINING NEEDS IDENTIFICATION FOR THE


SALES EXECUTIVES AT MOTHER DAIRY FRUIT
AND VEGETABLE PVT. LTD., NEW DELHI

SUBMITTED BY:
Neha Kapoor
MBA HR
BIMM

INDUSTRY GUIDE:
Mr. Shashank Teotia
Manager- HR

INTERNAL GUIDE:
Prof. T.J.Vidyasagar

EXECUTIVE SUMMARY
The project was conducted for identifying the training needs of the sales force at
Mother Dairy Fruit and Vegetable Pvt. Ltd. The sales force is constituted of 160 Sales
Executives (SE) and Junior Sales Executives (JSE). This project was conducted for a
period of 2 months dating from 2nd June, 2008 to 1st Aug, 2008.
The project began with an understanding of the sales job: the tasks involved and
the skills required for performing them. The information regarding the same was collected
from secondary as well as primary sources.
The secondary sources were Job Descriptions, books and websites.
The managerial staff as well as the sales executives of each vertical were
interviewed for a better understanding of the work and key responsibilities of the JSEs
and SEs. A comprehensive list of Knowledge, Skills and Abilities was collated for each
vertical on basis of the responses of the interviewees.
This list was circulated among the executive sales force as well as the Area Sales
Managers. The Sales Executives and the Junior Sales Executives were asked to give
themselves a rating on each skill, on a scale of 1 to 10. Their seniors were asked to rate the
executives in a similar manner on the basis of their performance at work.
These ratings were then analysed in order to determine the competencies that need
to be emphasized for training of the sales executives. The recommendations were made on
the priority and content of training needs for each department. These training needs have
been defined further in this project.

INDEX
Chapter no.
1.0

Chapter title
INTRODUCTION

1.1
1.2

RATIONALE OF THE STUDY


SECTOR PROFILE IN BRIEF

2.0

INDUSTRY/ SECTOR PROFILE

2.1
2.2
2.3

THE FOOD PROCESSING INDUSTRY


DRIVERS OF GROWTH & CONSTRAINTS
SWOT ANALYSIS OF THE FOOD PROCESSING INDUSTRY

3.0

COMPANY AND PRODUCT PROFILE

3.1
3.2
3.3
3.4

NDDB
MDFV(P)L: COMPANY PROFILE
PRODUCT PROFILE
MDFV(P)L STRUCTURE

4.0

LITERATURE SURVEY

4.1
4.2
4.3
4.4
4.5
5.0

MEANING AND NATURE OF TRAINING


TRAINING, EDUCATION AND DEVELOPMENT
IMPORTANCEOF TRAINING AND DEVELOPMENT
INPUTS IN TRAINING AND DEVELOPMENT
IDENTIFICATION OF TRAINING NEEDS
OBJECTIVES AND SCOPE

5.1
5.2
6.0

OBJECTIVES OF STUDY
SCOPE OF STUDY
RESEARCH METHODOLOGY

6.1
6.2
6.3
6.4

TYPE OF RESEARCH
SAMPLING
DATA COLLECTION TECHNIQUES AND TOOLS
TOOLS FOR ANALYSIS

7.0

DATA ANALYSIS AND INTERPRETATION

7.1
7.2

LIST OF KSAs FROM SECONDARY SOURCES


DIVISION WISE KSA LIST

8.0

OBSERVATIONS AND FINDINGS

9.0

CONCLUSIONS
3

Page no.

10.0

RECOMMENDATIONS
REFERENCES & BIBLIOGRAPHY
ANNEXURES

CHAPTER 1
INTRODUCTION

1.0 INTRODUCTION
1.1 RATIONALE OF THE STUDY
Continuous changes in the external environment demand that organizations must
continuously strive for higher levels of performance, which can be in terms of greater
productivity, increased efficiency and higher quality of goods and services.
Training is an organized activity for increasing the knowledge and skills of existing
or future employees for doing specific jobs with proficiency. It involves the development of
skills that are usually necessary to perform a specific job.
A training needs assessment is conducted to ensure that there is a need for training
and to identify the nature of what a training programme should contain. The assessment
provides the information needed for developing a training program that is based on the
learning needs of the participants. It, thus, increases the relevance of the training and the
commitment of the learners.
The project on identification of training needs at Mother Dairy Fruit & Vegetable
Pvt. Ltd. was carried out to identify the knowledge, skills and abilities (KSA) that the sales
executives require to perform their job and the skills that they require training in, to improve
their effectiveness in fulfilling the set targets.
Training sales force is even more important in organizations like MDFV(P)L, which
are marketing-driven. That is because their major goal is to sell profitably and training can
increase the performance of salespeople, resulting in increased sales

Sales training may be

defined as those things which are done to help salespeople gain mastery in the skills,
concepts, behaviors, and attitudes that will enhance their expertise in influencing prospects
to make positive purchasing decisions. Sales training concentrates on how prospective sellers
and buyers interact. It provides tools and techniques that help salespeople learn what they
must know in order to persuasively present their goods or services to buyers in terms that
buyers will understand and ultimately respond to.

Knowledge - an organized body of information, usually factual or procedural in nature.


For example, having knowledge of human resources' rules and regulations could be used

as a KSA for a Human Resources Specialist position. To respond to this KSA, you should
indicate what human resources rules and regulations you are familiar with, discuss how
you applied these rules and regulations in the work environment, and describe other
significant situations you were involved in where you applied these rules and regulations.

Skill - the proficient manual, verbal, or mental manipulation of data or things. For
example, having skill with operating personal computers could be used as a KSA for an
Office Automation position. To respond to this KSA, you should indicate what type of
personal computers you have operated, discuss the various types of software programs
you have used, and describe how these programs were used in your work environment.

Ability - the power or capacity to perform an activity or task. For example, having the
ability to use a variety of laboratory instruments could be used towards a Laboratory
Technician position. To respond, you should describe the types of laboratory instruments
you have used, discuss the types of assignments you completed using the laboratory
equipment, and describe the impact using the laboratory equipment had on your work
environment.

1.2.0 SECTOR PROFILE


FMCG (Fast Moving Consumer Goods) Sector primarily deals with the
production, distribution and marketing of consumer packaged goods, which are normally
consumed by the consumers at a regular interval. FMCG products have a quick turnover, and
relatively low cost.
Some of the common FMCG products are food and dairy products, coffee, tea,
toiletries, soap and detergents, cosmetics, tooth cleaning products, shaving products as well
as items such as glassware, bulbs, batteries, paper products and plastic goods.
FMCG may also include pharmaceuticals, consumer electronics, soft drinks, tissue
paper and chocolate bars. A subset of FMCG is Fast Moving Consumer Electronics such as
mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced
more frequently than other electronic products.
The following factors make India a competitive player in FMCG sector:
Availability of raw materials: Because of the diverse agro-climatic conditions in India,
there is a large raw material base suitable for food processing industries. India is the
largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the
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second largest producer of rice, wheat and fruits and vegetables. India also produces
caustic soda and soda ash, which are required for the production of soaps and detergents.
The availability of these raw materials gives India the location advantage.
Labor cost comparison: Low cost labor gives India a competitive advantage. India's
labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs
give the advantage of low cost of production. Many MNC's have established their plants
in India to outsource for domestic and export markets.
Presence across value chain: Indian companies have their presence across the value
chain of FMCG sector, right from the supply of raw materials to packaged goods in the
food-processing sector. This brings India a more cost competitive advantage. For
example, Amul supplies milk as well as dairy products like cheese, butter, etc.

1.2.1 SECTOR SIZE & GROWTH


Overall, the FMCG sales are expected to grow at 16 per cent, compared to 14.5 per
cent during the fiscal year 2007-08, when FMCG sales stood at Rs 854.7 billion. One of the
reasons cited for growth in this sector, is the emergence of modern retail format with its
effective inventory management systems. According to a FICCI survey, rural India offers
tremendous scope and potential for FMCG products. The estimated number of households
using FMCG products in rural India have grown from 13.6 crore in 2004 to 14.3 crore in
2007.
FMCG Sector is expected to grow by over 60% by 2010. That will transform into an
annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise
from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010 (1).
FMCG market remains highly fragmented with almost half of the market
representing unbranded, unpackaged home made products which present a huge opportunity
to branded product manufacturers to convert consumers from unbranded to branded
products. Key factors to success in the FMCG sector are distribution, in rural markets and
advertising, in urban markets. New products require a large investment in product
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development, market research, awareness campaigns, free samples and product promotions
(2)

1.2.2 THE FOOD PROCESSING INDUSTRY


The Food Processing category in the FMCG sector is gaining popularity in India, with
growing urbanization, increasing disposable income, emergence of organised food retail,
changing lifestyles and food consumption patterns driving growth for processed foods in
India. The Indian Food Processing Industry is one of the largest in terms of production,
consumption, export and growth prospects. The Ministry of Food Processing, Government of
India, indicates the following segments within the Food Processing industry:
Dairy, Fruit and Vegetable processing
Grain processing
Meat and poultry processing
Fisheries and
Consumer foods like packaged foods, mineral water, beverages and soft drinks etc.
The food industry serves as a link between the agricultural and industrial segments of
the economy. Strengthening this link is of critical importance to improve the value of
agricultural produce, ensure fair prices to farmers and at the same time create favourable
demand for Indian agricultural products in the world market. A thrust to the food processing
sector, thus implies significant development of the agricultural sector.

CHAPTER 2
INDUSTRY/ SECTOR PROFILE

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India is one of the major food producers in the world and has the potential of being
the biggest with the food and agricultural sector. The government has accorded the Food
Industry, a high priority, with a number of fiscal reliefs and incentives, to encourage
commercialization and value addition to agricultural produce, for minimizing pre/post
harvest wastage, generating employment and export growth.
The country has 1/10th of the world's arable land at around 160 million hectares,
which is higher than China. The country produces over 500 million tonnes of agricultural,
horticultural and dairy produce annually, thus making it one of the world's largest food
producers. India is the 2nd largest vegetable and 3rd largest fruit producer in the world. India
currently produces about 50 million tonnes of fruit (about 9% of the world's production) and
about 90 million tonnes of vegetables (11% of the world's production). With India's food
production likely to double in the next decade, there is an opportunity for large investments
in food and food processing technologies, skills and equipment. A developed food
processing industry would not only reduce wastages, but would also increasingly fetch
remunerative income to farmers.
2.1 FOOD PROCESSING INDUSTRY:
A dominant segment of the food industry, food processing is estimated to be worth
US$ 115 billion. It comprises agriculture, horticulture, animal husbandry, and plantation(3).
Segmentation of different sub-sectors in food processing industry:
Sub-Sectors
Dairy
Fruit &
Vegetable
Grains &
Cereals
Fisheries
Meat &
Poultry
Packaged
Foods

Products
Whole Milk Powder, Skimmed milk powder, Condensed milk, Ice cream,
Butter and Ghee, Cheese
Beverages, Juices, Concentrates, Pulps, Slices, Frozen &
Dehydrated products, Potato Wafers/Chips, etc
Flour, Bakeries, Starch Glucose, Cornflakes, Malted Foods,
Vermicelli, Beer and Malt extracts, Grain based Alcohol
Frozen & Canned products mainly in fresh form
Frozen and packed - mainly in fresh form, Egg Powder
Snack food, Namkeens, Biscuits, Ready to eat food, Alcoholic and Nonalcoholic beverages

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SUBSECTORS
Growth
rate of the
market
SizeOutput/
Value

DAIRY FRUIT &


SECTOR
VEGE
20%

MEAT &
PACKAGED
FISHERIES
POULTRY
FOODS

20%

US$ 375 2.33 million


million
tonnes

10%

20%

US$ 13
million

6.4 million
tonnes

8%

BEVERAGES
27%

US$ 2 billion US$ 155 million

Extent of
Processing

37%

2%

1%

12%

Share of
Organised
Sector

15%

48%

5%

80%

77%

ANALYSIS OF EACH SUB-SECTOR

2.1.1 SECTOR SIZE (4)


The size of Indian Food Processing Industry is US$70 billion. It is the fifth largest
Industry in India.
The share of Indias export of processed food in global trade is about 1.7%.
India ranks first in the world in milk production, which increased from 17 million tonnes
(MT) in 1950-51 to about 102 MT by 2007-08.
Primary food processing (packaged fruit and vegetables, milk, milled flour and rice, tea,
spices, etc.) constitutes around 60% of processed food.

Only 2.2% of fruits and vegetables are processed in India compared to up to 75% in
many developing countries.

In comparison, about 35% of milk and 26% of marine products undergo processing.

At US$ 300.67 million, the juice and juice drink category is among the fastest
growing segments of the approximately US$ 2.38 billion packaged beverages
category.

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STRUCTURE OF INDIAN FOOD PROCESSING INDUSTRY*

13

*Source: FAIDA/ Ministry of Food Processing Industries

2.2.2 STRUCTURE
At present the food processing sector employs about 1.6 million people directly and
about 35 million people indirectly.
In 2004-05, food processing sector contributed about 14% of manufacturing GDP with a
share of Rs. 2,80,000 Crores. Of this, the unorganized sector accounted for more than
70% of production in terms of volume and 50 % in terms of value.
The Indian food processing industry is largely unorganized and has few plants with small
scale economies.
About 80 per cent of milk produced in the country is in the unorganized sector and the
remaining 20 per cent is shared equally by cooperative and private dairies. However,
some co-operatives, such as the Gujarat Co-operative Milk Marketing Federation in milk
with its Amul brand of dairy products, have transformed certain sub-sectors.
Major international companies such as Nestle, Cargill, Unilever, Danone, PepsiCo and
Cadbury are already present in India contributing to the organized segment.
Over the last few years, there has been a positive growth in ready to serve beverages,
fruit juices and pulps, dehydrated and frozen fruits and vegetable products, tomato
products, pickles, convenience vegetable-spice pastes, processed mushrooms, and curried
vegetables.

2.1.3 GROWTH (3)


The growth of food processing sector has nearly doubled to 13.7 per cent during the last
four years, according to the Minister of State for Food Processing Industries, Subodh
Kant Sahai. India has set a target of growing at 20 per cent by 2015.
Experts estimate the industry GDP at 6-8 per cent with value addition of food products to
increase from 8 per cent to 35 per cent by the end of 2025.

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According to the 'India Food Report 2008', investments to the tune of US$ 23.5 billion
are in the pipeline to be made in the food processing industry over the next three years.
Significantly, processed food exports have increased from US$ 6.98 billion in 2002-03 to
US$ 20.51 billion in 2006-07, recording a whopping 193.83 per cent growth rate.
The opportunity for growth is huge when seen against the fact that while a mere 1.3 per
cent of food is processed in India, nearly 80 per cent of food is processed in the
developed world.
2.1.4 OUTLOOK (4)
The domestic processed-food market, at US$115 billion in FY 2006 is expected to grow
to US$310 billion by FY 2015.
India aims to increase its share of world trade in this sector from 1.7% currently (US$7.5
billion) to 3% by 2015 (US$20 billion).

2.1.5 POTENTIAL (4)


Factors that are likely to fuel rapid growth in demand for processed food in the domestic
market are:

Changing lifestyles and growth in disposable income.


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Rising double-income families and proportion of women in the workforce.

Decreasing prices of processed foods, making them more affordable thereby


accessing a much larger market.

Rapid growth in organised retail (> 20% p.a.) with a variety of retail formats being
developed.

Estimated investment of about US$24 billion in the next 8 years.


Major investment opportunities lie in processing milk, sugar, fruit, vegetables, grain
based snacks and marine products.
An estimated 30% of new capacity could be for the export market.

Targets for Processed Food (% of total production)


Item
2010
Fruit and Vegetables
4
Dairy
20
Marine Products
15
Meat
28
Poultry
10

2015
8
30
20
35
15

Source: Ministry of Food Processing - Vision Document

2.1.6 GOVERNMENT SUPPORT AND POLICIES (5)


Food processing and agro industries have been accorded high priority with a number
of important relieves and incentives. Some of the important policy changes are as follows:
Regulation & Control
No industrial license is required for almost all of the food & agro processing
industries except for some items like beer, potable alcohol & wines, cane sugar,
hydrogenated animal fats & oils etc. and items reserved for exclusive manufacture in the
small scale sector like pickles & chutneys, bread, confectionery (excluding chocolate,
toffees and chewing-gum etc.), rapeseed, mustard, sesame & groundnut oils etc.
A maximum of 24% foreign equity is allowed in SSI sector
FDI up to 100% is permitted under the automatic route in the food infrastructure
(Food Park, Cold Chain/warehousing).
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Use of foreign brand names are now freely permitted.


MRTP (Monopolies & Restrictive Trade Practices Act) rules and FERA (Foreign
Exchange Regulation Act) regulations have been relaxed to encourage investment and
expansion by large corporates.
Most of the items can be freely imported and exported. Capital goods are also freely
importable, including second hand ones in the food processing sector.
Fiscal Policy & Taxation
Excise & Import duty rates have been reduced substantially. Many processed food
items are totally exempt from excise duty.
Custom duty rates have been substantially reduced on plant & equipments, as well as
on raw materials and intermediates, especially for export production.
Corporate taxes have been reduced and there is a shift towards market related interest
rates. There are tax incentives for new manufacturing units for certain years, except for
industries like beer, wine, aerated water using flavouring concentrates, confectionery &
chocolates.
Export Promotion
Food processing industry is one of the thrust areas identified for exports. Free Trade
Zones (FTZ) and Export Processing Zones (EPZ) have been set up with all infrastructure.
Also, setting up of 100% Export Oriented Units (EOU) is encouraged in other areas.
They may import free of duty, all types of goods, including capital goods.
Units in EPZ/ FTZ and 100% Export Oriented Units can retain 50% of foreign
exchange receipts in foreign currency accounts.
50% of the production of EPZ/FTZ and 100% EOU units are saleable in domestic
tariff area. All profits from export sales are completely free from corporate taxes.
(Source-Food Processing Industries in India)
2.3 DRIVERS OF GROWTH & CONSTRAINTS (7)
The post-liberalisation trends that have given an impetus to the food processing sector are:
Growing urbanization
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Increasing disposable income


Emergence of organised food retail
Changing lifestyles and food consumption patterns
Consumption patterns in India have been undergoing a visible shift. Earlier, the share of
cereal products was the highest, followed by milk & milk products, vegetables, edible oil
and meat products. However, in recent years, the growth rates for fruits, vegetables, meat
and dairy products have been higher than cereals and pulses. This shift in turn implies that
there is also a need to diversify the food production base to match the changing
consumption preferences.
Going by this pattern, in future, there is increasing demand for prepared meals, snack
foods and convenience foods and further on the demand is shifting towards functional,
organic and diet foods.
Some of the key constraints identified by the industry include:
Lack of suitable infrastructure in terms of cold storage, warehousing, etc
Lack of adequate quality control and testing infrastructure
Inefficient supply chain and involvement of middlemen
High inventory carrying cost
High taxation
High packaging cost
Affordability and cultural preference of fresh food
Highest priority has been accorded by the Government for the development of
infrastructure. The Government has already taken several initiatives on this front which
include developing of the following:
Food parks
Packaging centres
Modernised abattoirs
Integrated cold chain facilities
Irradiation facilities
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Value added centres.

2.4 SWOT ANALYSIS OF FOODPROCESSING INDUSTRY


Strengths
Abundant availability of raw material.
Priority sector status for agro-processing given by the Central Government.
Vast network of manufacturing facilities all over the country.
Vast domestic market.
Low labour costs- production cost are 40% lower than in developed markets.
Weaknesses
Inadequate infrastructure.
Lack of adequate quality control & testing methods as per international standards.
Inefficient supply chain due to a large number of intermediaries.
High requirement of working capital.
Inadequately developed linkages between R&D labs and industry.
Seasonality of raw material.
Opportunities
Large crop and material base offering a vast potential for agro processing activities.
Setting of SEZ/AEZ and food parks for providing added incentive to develop greenfield
projects.
Rising income levels and changing consumption patterns.
Favourable demographic profile and changing lifestyles.
Integration of development in contemporary technologies such as electronics, material
science, bio-technology etc. offer vast scope for rapid improvement and progress.
Opening of global markets.
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Threats
Affordability and cultural preferences of fresh food.
High inventory carrying cost.
High taxation.
High packaging cost.
Source: Ministry of Food Processing Industries, Annual Report 2003-04
2.5 PROFLIE OF KEY PLAYERS
PLAYER
Britannia
Industries
Ltd.

SEGMENT
Bakery
Products

PRODUCTS
Biscuits,
flavoured milk,
dairy
whitener, ghee,
bread, cake
and rusk

Dabur
India Ltd.

Beverages
and Culinary

Hindustan
Unilever
Ltd.
(HUL)

Beverages,
Staples,
Dairy, Snack
Foods

Parle
Agro Pvt.
Ltd.

Beverages
and Bottled
Water

Fruit juice,
cooking pastes,
coconut milk,
tomato puree,
lemon drink
and honey
Tea, instant

The parent company Unilever holds 51.55% of


coffee, biscuits,
HULs equity. Unilever is a Fortune 500 transnational,
ice creams,
which sells foods, home care and personal care brands
salt, wheat
in about 100 countries worldwide
flour (atta),

Indias largest fast moving consumer goods


instant drinks,
company, with leadership in Home & Personal Care
soups, jam and
products and Foods & Beverages
squash

HULs brands, are spread across 20 distinct


consumer categories, with combined volumes of about 4
million tonnes and sales of US$ 2.17 billion

HULs foods segment is at 9%, beverages are at


12% of its businesses
Fruit drinks

Leading player in the fruit based beverages


and mineral
segment and the bottled water segment

Its flagship product is the fruit based drink Frooti


Mango, which has 75% market share
Sweets,

Major share in the namkeen and snack food


namkeens,
market in India. Strong presence in northern India
syrups,
especially in New Delhi

Haldiram Snack Foods


Marketin
g Pvt. Ltd.

ABOUT THE COMPANY

A leading player in the Indian organised biscuit


market with nearly 30% value share

The Nusli Wadia group, one of the oldest business


houses in India and Groupe Danone, a French multiproducts food company, equally share the 48.5%
promoter holding in Britannia

Sales of Rs. 14.7 billion in 2004

Closely held listed company with promoters


holding at 78.4% of the total share capital.

Dabur Foods is a 100 % subsidiary of Dabur India

Turnover of US$ 21.45 million in 2004

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MTR
Foods Ltd

Snack Foods,
Ice creams

crushes, chips
and papads
Ready-to-eat
curries and
rice, ready-tocook gravies,
frozen foods,
ice creams,
instant snack
and dessert
mixes, spices,
pickles and
papads

Exports to USA, UK, Canada, Australia,


Singapore and the UAE

Turnover is estimated at US$ 261 million, with


the export market accounting for approximately 10% of
MTRs total sales

An ISO 9002 and HACCP certified company. It is


amongst the top five processed food manufacturers in
India

The company was recently acquired by Orkla, a


Norway-based company for US$ 80 million

CHAPTER 3
COMPANY AND PRODUCT
PROFILE

21

Mother Dairy New Delhi was set up in 1974 under the Operation Flood
Programme, to overcome Delhi's severe milk shortage.. It is now a wholly owned subsidiary
of the National Dairy Development Board (NDDB).
3.1 NDDB
The NDDB was created in year 1965 so as to endorse, finance and support producerowned and controlled organizations. It was formed with a purpose to strengthen farmer
cooperatives and support national policies that were favourable to the growth of such
institutions. It was found to replace existing exploitation with empowerment; tradition with
modernity and stagnation with growth. Its main aim was to transform dairying into an
instrument for development of Indias rural people.
3.1.1 NDDB STRUCTURE
NDDB has the following subsidiaries:
Indian Immunologicals Ltd., Hyderabad
Indian Dairy Machinery Company Ltd., Anand
Mother Dairy Fruit & Vegetable Pvt. Ltd., New Delhi
3.2 MOTHER DAIRY FRUIT & VEGETABLE PVT. LTD. : COMPANY PROFILE
Mother Dairy Fruit & Vegetable Pvt. Ltd. (MDFV(P)L), New Delhi was incorporated on
24th March, 2000. It deals with the processing, marketing, sales and distribution of milk and
milk products, fruit and vegetable and edible oil through a vertically integrated network
under the Mother Dairy brand, the Safal range of fresh fruits & vegetables, frozen vegetables
and fruit juices and Dhara range of edible oils at a national level through its sales and
distribution networks for marketing food items.
Mother Dairy sources its entire requirement of liquid milk from dairy cooperatives.
Similarly, Mother Dairy sources fruits and vegetables from farmers / growers associations.
Mother Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/
pack the Dhara range of edible oils by undertaking to nationally market all Dhara products.
3.2.1 MISSION
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It is Mother Dairys constant endeavour to:


(a) Ensure that milk producers and farmers regularly and continually receive market
prices by offering quality milk, milk products and other food products to consumers
at competitive prices.
(b) Uphold institutional structures that empower milk producers and farmers through
processes that are equitable.
3.2.2 SALES VOLUME
The company markets more than 2.2 million litres of milk daily in Delhi and surrounding
areas of Western U.P. and Haryana, Mumbai and Hyderabad. Mother Dairy Milk has a
market share of 66% in the branded sector in Delhi where it sells 2 million litres of milk
daily and undertakes its marketing operations through more than 10,000 retail outlets. There
are 780 exclusive outlets of Mother Dairy out of this.
The companys unique distribution network of bulk vending booths, retail outlets and
mobile units give it a significant competitive advantage. Other than Delhi and NCR, Mother
Dairys dairy products are available in the markets of Northern India, Eastern India,
Mumbai, & Port Blair.
MDFV(P)L plans to be a $1 Billion company by 2010.

3.3 PRODUCT PROFILE


Mother Dairy manufactures and markets a wide range of dairy products besides Milk.
These include Butter, Dahi, Ghee, Cheese, UHT Milk, Dairy Whitener, Ice Creams,
Lassi & Flavoured Milk.
The company markets an array of fresh and frozen fruit and vegetable products under the
brand name SAFAL through a chain of 295 owned Fruit and Vegetable shops and more
than 20,000 retail outlets in various parts of the country.
Mother Dairy has also been marketing the Dhara range of edible oils for the last few
years. Today it is a leading brand of edible oils and is available across the country in over
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2,00,000 outlets. The brand is currently available in the following variants: Refined
Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Kachi Ghani Mustard Oil
and Filtered Groundnut Oil. Mother Dairy has also launched extra virgin Olive Oil under
the Daroliva brand.

3.4 MDFV(P)L STRUCTURE

3.4.1 Strategic Business Units


MDFV(P)L has two strategic business units: 1) Dairy and food and 2) Horticulture.
Dairy & Food SBU
It is further divided into two categories:

Products

Fresh Milk

The Products Division is responsible for the marketing, sales and distribution of:

All dairy products (except fresh milk) under the Mother Dairy brand

Dhara range of edible oils.


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Safal range of food products at a national & international level.

Horticulture SBU
It is responsible for marketing, sales and distribution of Fresh Fruit & Vegetables
THE STRATEGIC BUSINESS UNITS OF MDFV(P)L

MDFV(P)L

Dairy &
Food
Produc
ts

Safal Products
Dhara Edible Oil
Ice Creams
Butter & Cheese
Curd, Lassi &
chaach

Horticult
ure
Fresh
Fruit &
Vegetabl
e

Fresh
Milk
Fresh Milk
Packet
Loose

The Products Division of MDFV(P)L has six verticals:

25

Grocery Chain Products (GCP): The products that can be kept in a room
temperature like, ultra heated milk-tetra pack, Dhara Vegetable Oils, Olive Oil and
Ghee are catered to. It generates highest revenues.
Ice Cream and Frozen Products (IFP): The business operates at -170 C. The
products are ice creams and Safal products like Frozen Peas, Frozen Corn and Hot
Snacks.
Modern Retail Format (MRF): This verticals deals with the modern retail markets
like hyper markets. The primary function of this vertical is to do Channel
Management and Shelf management. It ensures availability of Mother Dairy products
in all the hyper markets like Reliance stores, Big Bazar, Subhiksha etc.
Mother Dairy Food Services (MFS): This vertical explores the consumption
opportunities out of home. It targets varied range of institutional customers. Private
institutions like star hotels, schools, office canteens, air caterers and hospitals.
Government institutions like Paramilitary forces, CSD, Hospitals, Airports, ITDC,
IRCTC, Pragati Maidan.
Butter & Cheese (BC): Here the business operates at 40 C. The products are Butter
and Cheese which constitute to a major business. The shelf life of the products is
from 6 months to 9 months.
FRESH: The business operates at 40 C. The shelf life of the products is low. It deals
with the products like Chaach, Dahi and Lassi.

3.5 SALES DEPARTMENT HIERARCHY


26

27

CHAPTER 4
LITERATURE SURVEY

28

4.0 MEANING AND NATURE OF TRAINING

Training refers to the imparting of specific skills, abilities and knowledge to an


employee. It is an attempt to improve employee performance by increasing an employees
ability to perform through learning.
Every organization needs to have well trained and experienced people to perform
the activities that have to be done. Training also gives the employees a greater job security
and an opportunity for advancement. Thus, a skill acquired through training is an asset for
the organization as well as the employee.
The need for training may arise because of the following reasons:

Inadequate job performance

Decline in productivity

Changes resulting out of job redesigning

Changing technology

4.1 TRAINING, EDUCATION AND DEVELOPMENT


Training, Education and Development are three terms used interchangeably.
However, we can make a distinction among Training, Education and Development.
Training is a process of learning a sequence of programmed behavior. It is
application of knowledge that intends to improve their performance on current job or
prepare them for an intended job. An employee undergoing training is presumed to have
had some formal education. No training programme is complete without an element of
education. Training is generally offered to operatives.
Education, on the other hand, is an understanding of knowledge that intends to
develops a logical and rational mind rather than provide definitive answers. The purpose of
education is to teach theoretical concepts and develop a vital sense of reasoning and
judgment.
Development is a process related to training; it involves not only those activities
that improve job performance but also those that bring about growth of personality. It
provides general knowledge and attitues intended to equip employees to earn promotions
and hold greater responsibilities.
29

4.1.1 DISTINCTION BETWEEN TRAINING AND EDUCATION


Training
Training is Application oriented

Education
Education has Theoretical orientation

Imparts specific skills

Covers general concepts

Has a narrow perspective

Has a broad perspective

Training is Job Specific

Education is no bar

4.1.2 DIFFERENCE BETWEEN TRAINING AND DEVELOPMENT


Training
Training involves technical & mechanical

Development
Development involves conceptual ideas

operations.
Training is presumed to have a formal

and mental attitudes.


Development is not education dependent.

education.
Training needs depend upon lack or

Development depends on personal drive

deficiency in skills.
Training is a narrower concept focused on

and ambition.
Development is a broader concept focused

specific job related skills.

on personality development and general

Training is concerned with maintaining

knowledge.
Development

and improving current job performance,

competence

and thus, it has a short-term perspective.

performance, and thus, it has a long-term

Training is aimed at improving job related

perspective.
Development aims at overall personal

efficiency and performance.

effectiveness including job efficiencies.

seeks
and

skills

to

develop
for

future

4.2 IMPORTANCE OF TRAINING & DEVELOPMENT


Training is an integral part and corner-stone of sound management, as it makes
employees more effective and productive. There is an ever present need of training so that
new techniques can be taken advantage of and improvements can be made in the old
methods. It benefits the organization and the employees equally.
30

4.2.1 BENEFITS TO THE ORGANIZATION

Leads to improved profitability and more positive towards profit orientation

Improves the job knowledge and skills

Helps people identify with organizational goals and understand and follow

organizational policies

Aids in organizational development

Aids in increasing productivity and quality of work

Develops a sense of responsibility to the organization for being competent

Improves morale of the workforce

Helps lower costs

4.2.2 BENEFITS TO THE INDIVIDUALS

Helps employees adjust to change

Helps individuals in making better decisions and in effective problem solving

Encourages employees in achieving self-development and self-confidence

Increases job satisfaction and recognition

Aids the improvement of attitudes, knowledge and skills

4.2.3 BENEFITS IN HUMAN RELATIONS

Improves communication between groups and individuals

Makes organizational policies, rules and regulations viable

Improves morale

Improves organizational climate

4.3 INPUTS IN TRAINING AND DEVELOPMENT


31

Skills: Skills imparted during a training programme maybe basic operational skills,
motor and psychomotor skills, interpersonal or people skills etc.

Knowledge: Knowledge is given emphasis in a development programme. It includes


knowledge about business environment, management principles, human relations,
specific industry analysis etc. useful for better management.

Attitudinal Changes: Attitude represents feelings and beliefs of individuals towards


others. Negative attitudes need to be converted to positive attitudes so that employees
feel committed to the organization, are motivated for better performance and derive
satisfaction from their jobs and the work environment.

Education: It aims at teaching theoretical concepts & develop a sense of reasoning and
judgement. Education is more important for managers and executives than for lowercadre workers.

Ethics: An ethical orientation is important as it creates a credible public image, helps


people in identifying with the organization and in better decision making in the interest
of everyone.

Decision Making & Problem Solving Skills: They focus on methods and techniques
that help define and structure problems, collect and analyse information, generate
alternative solutions and take appropriate decisions

4.4 THE T
32

The Sales Force was segregated as per their divisions for this stage.
6.3 DATA COLLECTION TECHNIQUES AND TOOLS
Primary Data collection was done using three tools:

Structured Interviews: These were used to identify the KSAs.

Ranking: This was used to prioritise the KSAs identified.

Rating Scales: Ratings were given to identify the skills gap and hence the training
needs.
Secondary Data: Company annexure, Websites, Books, Job Descriptions.
6.4

TOOLS FOR ANALYSIS


These tools were selected so as to find a single value for ratings of each skill.

6.4.1 MODE
Mode is that value which occurs the maximum number of times i.e. has the
maximum frequency.
It represents a majority of the total population.
6.4.2 ARITHMETIC MEAN
It is the value obtained by adding together all the observations & by
dividing the total by the number of observations.
Formula: X= X1+X2+X3+..XN
N
It represents the average rating for each skill.

33

CHAPTER 6
DATA ANALYSIS AND
INTERPRETATION

34

6.1 KSA IDENTIFICATION


A list of KSAs was identified as important to perform a sales executives job after
conducting the interviews. These KSAs were prioritised by the National Sales
Managers of each of the six verticals in the order of their importance as a competency
to perform effective sales.
6.1.1 ICECREAM & FROZEN PRODUCTS KSAs
Total number of people interviewed: 19

KSAs
Analytical Abilities
Claim Handling
Communication
Complaint Handling
Computer Skills & Reporting
Systems of the organization
Distribution Management
Follow Up Skills
Market Expansion
Monitoring & Training
PSMs & DSMs/ Man
Management
Organizational Policies &
Processes
Product Knowledge
Selling Skills

NUMBER OF PEOPLE
WHO IDENTIFIED
THE SKILL
7
6
10
7
9

PERCENTAGE OF
TOTAL RESPONSES
36.8%
31.6%
52.6%
36.8%
47.4%

16
5
7
8

84.2%
26.3%
36.8%
42.1%

31.6%

3
3

15.8%
15.8%

35

KSAs AS PERCENTAGE OF TOTAL RESPONSES


BY THE EXECUTIVES AND THEIR SENIORS

IFP KSA LIST PRIORITISED BY THE NATIONAL SALES MANAGER

KSA

Priority

Selling Skills

Distribution Management

Follow Up Skills

Monitoring & Training PSMs & DSMs/ Man Management

Claim Handling

Market Expansion

Complaint Handling

Analytical Abilities

Communication

Organizational Policies & Processes

10

Computer Skills & Reporting Systems of the organization

11

6.1.2 GROCERY CHAIN PRODUCTS KSAs


36

Total number of people interviewed: 33


KSAs
Analytical Abilities
Claim Handling
Communication
Complaint Handling

NUMBER OF PEOPLE
WHO IDENTIFIED THE
SKILL
4
4
6
5

Computer Skills & Reporting


Systems of the organization
Distribution Management
Follow Up Skills
Interpersonal Skills
Market Knowledge
Modern Trade
Monitoring & Training PSMs &
DSMs/ Man Management
Organizational Policies &
Processes
Presentation/ Personality
Product Knowledge
Selling Skills
Negotiation

37

PERCENTAGE OF
TOTAL
RESPONSES
24.24%
24.24%
36.36%
15.15%

51.52%

21
7
4
8
3

78.79%
39.39%
24.24%
36.36%
9.09%

18

54.55%

24.24%

5
9
6
5

15.15%
45.45%
42.42%
15.15%

KSAs AS PERCENTAGE OF TOTAL RESPONSES


BY THE EXECUTIVES AND THEIR SENIORS

GCP KSA LIST PRIORITISED BY THE NATIONAL SALES MANAGER

Skill

Priority

Selling Skills

Claim Handling

Product Knowledge

Distribution Management

Communication

Analytical Abilities

Negotiation

Presentation/ Personality

Follow Up Skills

6.1.3 BUTTER AND CHEESE KSAs

38

KSAs AS PERCENTAGE OF TOTAL RESPONSES


BY THE EXECUTIVES AND THEIR SENIORS

BC PRIORITISED LIST

Skill

Rank

Distribution Management

Selling Skills

Planning

Communication

Monitoring & Training PSMs & DSMs/ Man


Management

Product Know/ Market Know

Follow Up Skills

Organizational Policies & Processes

6.1.4 MOTHER DAIRY FOOD SERVICES KSAs


Total number of people interviewed: 7
39

KSAs
Analytical Abilities
Claim Handling
Communication
Complaint Handling
Computer Skills &
Reporting Systems
Distribution
Management
Interpersonal Skills
Market Knowledge
Negotiation
Organizational Policies
& Processes
Product Knowledge
Selling Skills

NUMBER OF
PEOPLE WHO
IDENTIFIED THE
SKILL
3
3
4
2

PERCENTAGE OF
TOTAL RESPONSES
42.86%
42.86%
57.14%
28.57%

28.57%

71.43%

1
4
5

14.29%
57.14%
71.43%

42.86%

5
1

71.43%
14.29%

KSAs AS PERCENTAGE OF TOTAL RESPONSES


BY THE EXECUTIVES AND THEIR SENIORS

MFS PRIORITISED LIST

40

Skill

Rank

Distribution Management
Communication
Negotiation
Selling Skills
Analytical Abilities
Market Knowledge/ Product Know
Organizational Policies & Processes
Complaint Handling
Claim Handling
Computer Skills & Reporting Systems of the organization

1
2
3
4
5
6
7
8
9
10

6.1.5 MODERN RETAIL FORMAT KSAs


Total number of people interviewed: 7

KSAs

NUMBER OF
PEOPLE WHO
IDENTIFIED THE
SKILL
41

PERCENTAGE OF
TOTAL
RESPONSES

Analytical Abilities

28.57%

Communication

28.57%

Competitors' Knowledge

28.57%

Computer Skills & Reporting


Systems of the organization

42.86%

Distribution Management

71.43%

Follow Up Skills

42.86%

Interpersonal Skills

28.57%

Market Knowledge

42.86%

Monitoring & Training PSMs &


DSMs/ Man Management

57.14%

Negotiation

42.86%

Product Knowledge

28.57%

Selling Skills

71.43%

Modern Trade

14.29%

Presentation/ Personality

14.29%

Questionnaire for ASMs


What skills are required by the JSEs & SEs to perform their job effectively?
What additional skills can be imparted for improving their performance?
What are their Key responsibilities?
Are there areas in which the sales executives might require training?
42

Questionnaire for Sales Executives


What is your daily routine?
What are your Key Responsibilities?
What problems do you often face at work?
What do you like doing the best at work?
How should the organization support you for better performance?
How do you compare yourself with the competitors? What are their advantages over
you?

JOB DESCRIPTION
A. JOB INFORMATION:
Job Holder:

Job Title: Jr. Sales Executive, SE

Location:
Company: MDIL
Function: Butter & Cheese & Beverages,
Grade:
FRESH,
Functional Reporting: ASM / SSE

Administrative Reporting: ASM / SSE

43

Total Reportees (Direct/ Indirect): 0/1-2

B. MAIN RESPONSIBILITIES: (listed in order of priority)

Ensure Sales as per set targets secondary and primary.

Distribution Expansion as per annual plan.

Ensure supply, coverage, frequency, inventory level and managing the


infrastructure.

Ensuring adequate merchandising in terms of product visibility and display of


POS.

Sales Forecasting/ MIS generation.

Timely RS claim submission.

Ensuring RS infrastructure investment and working as per Company norms.

On the job training to the RSSMs

Speedy response to competition/ Sales promotional activities.

Prompt Market feedback to manager.

Control damages and maintaining stock hygiene at RS/ Retail levels

Fiscal discipline with respect to RS claims budgets approved & T&E claims.

C. ADDITIONAL/ OCCASIONAL RESPONSIBILITIES: (listed in order of priority)


Proper reporting to Manager, regarding PFA related/ sample picking activity in the market.

D. JOB SPECIFICATIONS:
Education:

Graduate

Experience:

1+ Years

Training:

Negotiation Skills
Selling Skills
Distribution Management Skills
Merchandising

44

Skills/ Abilities:

Assertive
Process driven
Analytical
Good Communication
IPR with retailers, distributors, coworkers
Follow up skills
Willingness to implement / learn

E. SCOPE OF JOB:
AREA

TARGET/ MEASURE

Volume/ Turnover/ Others (Rs.)

Average Rs. 8 Rs. 10 Lakhs per annum

Volume/ Turnover/ Others (Units)


Profit/ Productivity/ Others (Rs./
Units/ Ratio)
Geographical Span of Control

70 MT 120 MT or 500 Cases of Beverages


To drive Profitability Statements along with variance
analysis with Board Approved Budgets
Metro : 5 6 Distributors, Non Metro : 5 6 Districts.

JOB DESCRIPTION
JOB INFORMATION:
Job Holder

Job Title: Junior Executive

Company: M.D.I.L

Location:

Function: MFS

Grade:

Functional Reporting: ASM /SSE

Administrative Reporting: ASM/SSE

Total Reportees (Direct/ Indirect): 0/1-2

F. MAIN PURPOSE: (captures essence of the job in brief)


To drive institutional sales in the assigned territory, covering various categories of
institutions for all the Mother Dairy Products

MAIN RESPONSIBILITIES: (listed in order of priority)

45

Achievement of sales targets for different categories of products by building and


maintaining trade relations with Key Institutional Accounts through extensive
persuasion.

Development of institutional Redistribution Stockist (RS) as per the plan.

Developing Direct Sales Points at key institutions.

Ensuring effective servicing of indirect institutional accounts.

Ensure effective customer service to the key accounts in terms of timely delivery,
complaint resolution etc.
Ensuring maintenance of records with respect to the Assets placed in institutions
and escalate technical problems to the BDO.
Ensure timely recovery of payments for direct company Accounts.

G. JOB SPECIFICATIONS:
Education:

Graduate with professional diploma

Experience:

3 - 5 years.

Training:

Communication Skills & Product Knowledge

Skills/ Abilities:

Specialized institutional sales handling skills.


Key accounts handling.
Developing professional relations with high profile institutional
buyers.

H. SCOPE OF JOB:
AREA

TARGET/ MEASURE

Volume/ Turnover/ Others (Rs.)

4 5 Crores

Volume/ Turnover/ Others (Units)


Profit/ Productivity/ Others (Rs./ Units/ Ratio)
Geographical Span of Control

Average 175 MT

46

Metro / 5 7 Districts