Semester

Project

Submitted by:
SECTOR INFORMATION
• FMCG is the 4th largest sector in the Indian economy and is
valued at about US$ 49 billion as of 2016

• Hair Care market is the leading FMCG market segment accounting

for 23% followed by Foods (19%) and Health Supplements (16%)

Skin Care,
5%
Digestives,
7% Haircare,
• People are gracefully embracing Ayurveda Home
23%
Care, 6%
products, which has resulted in growth of
FMCG major, Patanjali Ayurveda, with a m-cap of OTC &
Ethicals,
US$ 14.94 billion. The company aims to expand 9%

globally in the next 5 to 10 years.

Foods, 19%
Oral Care,
15%

Health
Supplemen
ts, 16%
Source: Dabur
CONT.
• FMCG market in India is expected to grow at a CAGR of 20.6 per cent and is
expected to reach US$ 103.7 billion by 2020 from US$ 49 billion in 2016

• The rural FMCG market in India is expected to grow at a CAGR of 14.6 per
cent, and reach US$ 220 billion by 2025 from US$ 29.4 billion in 2016

FMCG Market in India (US$ Rural FMCG Market in India (US$

billion) billion)
120 103.7 120
100
100 CAGR 20.6% 83.3 100
80 68.4 CAGR 14.6%
57.4 80
60 43.1
49
36.8 35.7 38.8 60
40 30.2 34.8
24.2
15.7 17.8 21.3 40 29.4
20 18.9
20 10.5 12.3 12.1 14.8
0 9
0
2009 2010 2011 2012 2013 2015 2016 2025F

Source: TechSci, Dabur, AC FMCG Market in India (US$ billion) Source: TechSci, Dabur, AC
Rural FMCG Market in India (US$ billion)
 Threat of Substitutes
Porter’s 5 • Presence of multiple brands
Forces • Narrow product differentiation under
many brands
• Price war

Bargaining Power of Supplier Rivalry Competition Buyer Power

• Big FMCG companies are
able to dictate the prices
through local sourcing
from a fragmented
group of key commodity
suppliers
• Private label brands by • Low switching cost
retailers are priced at induces the customers’
a discount to product shift
mainframe brands • Influence of
limits competition for marketing strategies
the weak brands • Availability of same or
• Highly fragmented similar alternatives
industry as more MNCs
are entering

Threat of New Entrants

• Huge investments in setting up distribution
network and promoting brands
• Spending on advertisements is aggressive
COMPANY OVERVIEW
• Mondelēz International, is an American multinational
confectionery, food, and beverage company based in Illinois and
operating in more than 80 countries
• Irene Rosenfeld is the CEO and Chairman of Mondelēz
International

SWOT ANALYSIS
• Low cost as per the targeted market
STRENGTH • Good product quality
• Multiple flavor
• Limited target audience
Weakness
• Tie-up with corporates/hotel chains
Opportunity • Oreo Ice-cream
• Oreo Cake
• Switching cost is low as per customer point of view
Threat • Chocolates
• Poor Copies
PRODUCT PROFILE

1.Bournvita 1. Oreo 1. 5 Star

2. Tang 3. belVita 2. Cadbury Dairy Milk
3. Cadbury Eclairs
COMPANY NEWS
• Mondelēz International Named to the Dow Jones Sustainability Index
• Google and OREO Team Up To Reveal Android OREO
• Mondelēz International Delivers Strong Progress against Its 2020 Impact
Goals

COMPETITOR ANALYSIS
• 40% of Biscuit Market share is captured by
Market Share in Cream
Parle followed by Britannia(25%), ITC (8%). ITC is
the leading Food & Beverage company Biscuits
Britannia
15%
• In Cream segment Britannia is the leading Sunfeast
company with 15% followed by Sunfeast(11%) 11%

and Oreo(6%)
Oreo
Others 6%
68%

Britannia Sunfeast Oreo Others

 PRODUCT INFORMATION
• Oreo, milk’s favorite cookie, was first introduced in 2011 in India
• Today, Oreo is available in many flavors and varieties, such as chocolate, Strawberry, Vanilla,
chocolate, Strawberry, Vanilla, Orange

SWOT Analysis of OREO

Strengths Weaknesses Opportunities Threats
• Low cost as per • Limited target • Tie-up with • Severe threat from
targeted market audience corporates/hotel wafer and salted
chains snacks segment
• Good product • limited ability to raise
quality and price due to • Oreo Ice-cream can
packaging competitors’ low be a good • Chocolates
prices opportunity
MARKETING MIX
Product
• Quality FSSAI Approved
• USP Flurry Cream
• Brand Cadbury OREO
• Image Sandwich biscuit
• Features Nutritional facts, Barcode, Instructions to prepare, Storage
conditions, License No, Name and address of the manufacturing
unit
• Variants Chocolate, Vanilla, Strawberry, Orange
• Use Beauty soap
• Slogan 'Twist, Lick, Dunk‘
• Warranty Packaging date, Best before 6 months from packaging
• Contact Website: http://in.mondelezinternational.com/home Contact No.: 022-
33963100
Oreo Crème Variant Price Quantity
Vanilla, Choco, Strawberry ₹10 50gm
Vanilla, Choco, Strawberry ₹30 120gm
Price Orange ₹15 60gm
• Listed Price Orange ₹35 150gm

• Discounts Normal discounts, quantity discounts

CONT.
Place
• Trade Channels Departmental stores, Super Market, Hypermarket, Online
platforms
(like BigBasket) and Specialty Stores
• Sales Support Website: http://in.mondelezinternational.com/home
Contact No.: 022- 33963100

Promotion
• Marketing Communication Television advertisements, Newspapers, Magazines,
Online (Facebook) advertisement
• Sale Promotion Promoted by Bollywood actor Ranbir Kapoor
Segmenting Targeting Positioning
Geographic Demographic Psychographic Behavioural

 India  Age: 3 and above  Interest:  Frequency of

 Urban  Gender: Unisex  Creamy Buying: Once a
 Metro Cities  Income: ₹20,000/-  Chocolaty week
 Tier I month and above  Rich in Milk flavour  Usage Rate: Daily
 Sub-urban  Education: Any  Opinion:  Attitude towards
 Tier II Cities  Occupation: Any  Flurry Cream Product: Positive
 Rural  Sandwich Biscuit  Loyalty Status:
 Tier III  Royale design of Medium
biscuit
Targeting:
All those Outgoing, readiness to try new products, brand-conscious middle & upper-middle income
level people in Indian Tier I metro cities and Tier II cities.

Positioning: Light, Fun, Family moments

 Point of Parity- Flurry Cream
 Point of Differentiation- The biscuit with goodness of milk
“To every person that feels happy, enjoys life and wants to have or share a unique taste, oreo is the
answer and experience enhancer”
Product Life Cycle
• OREO is in the low maturity stage in India
• It has an increasing customer base
• Market share is increasing steadily and now it has emerged as a market leader and is competing with
a market leader and is competing with the top crème biscuits in the country
in the country
INTRODUCTION Growth Maturity Decline
Annual Sales Volume

R
&
D

Time
ORGANIZATION STRUCTURE
Managing
Director

Vice president -
Vice president -
Vice president - Sales &
CFO & CEO Human
Product Team Customer
Resources
development

Marketing Marketing Human

Manager - Manager -
manager Manager Resource
Finance Product Team
(India) (International) Manager

General
General
Manager
Executives Executives Manager Executives
(Customer
(whole Sale)
Care)

Executives Executives
 JOB DESCRIPTION & JOB SPECIFICATION
1. Marketing 2. Finance 3. Human Resource

SELECTION PROCESS
Online Application: Applicant need to fill online form first before
Pre-selection: Simple chat with applicant who applied for the job
Interview: Interview happened offline or through Skype
Job Offer: After selection they give the offer letter to selected candidates

TRAINING & DEVELOPMENT

TRAINING PROGRAM DEVELOPMENT PROGRAM
• Mondelēz Delicious Academy
10%
70% On-the-job Training
20%
Informal Learning
Formal
Learning
•
•
New Manager Boot Camp
Mondelēz Mba Program
Source: Charles Jennings, former CLO of Reuters
PERFORMANCE APPRAISAL PROGRAM
• 360 Degree Appraisal

CAREER PLANNING
Separation Recruitment
/
Retirement

Learning and
Compliance
development
and reporting

Performance
Risk
management
Management

Engagement
and
recognition

ORGANIZATION CULTURE (VIEW)

• Great place to work! "Open" environment, nice people and fun
brands! Personally I would like to work there for all of my
life
• Learning powerhouse best in class systems
Bosch’s Financial Analysis

Net Profit and Gross Profit Margin DIRECT COST & INDIRECT COST

Net Profit Margin and Gross Direct Cost Vs Indirect Cost (in
Profit Margin (in %) ₹ Mn)
20 80,000 68,905
14.66 15.48
53,350 56,778
15 11.85 60,000 50,960 51,171
10.28
13.95 14.41 37,764
10 40,000 28,876 32,804
25,861 27,293
11.06
10.03
5 20,000

0 0
FY 2013 FY 2015 FY 2016 FY 2017 FY 2012 FY 2013 FY 2015 FY 2016 FY 2017
Net Profit Margin Gross Profit Margin Direct Cost Indirect Cost

• A year-on-year growth in the Net Profit margin is an

indicator that the overall profitability of Bosch is
increasing
Working capital for the year 2016 & 2017
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑦𝑒𝑎𝑟 = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑓𝑜𝑟 2017 = 58,994 − 26,300 = ₹32,694
𝑓𝑜𝑟 2016 = 58,382 − 25,005 = ₹33,377

Debt-Equity ratio of the company

𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝐷𝑒𝑏𝑡 − 𝐸𝑞𝑢𝑖𝑡𝑦 𝑅𝑎𝑡𝑖𝑜 =
𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟′𝑠 𝐸𝑞𝑢𝑖𝑡𝑦
2017= 30,002/87,996 = 0.34 times
2016=28,979/95,349 = 0.30 times

• Company is more relying on equity Instead of debt

Fixed Assets
• ₹6485 million fixed assets of the amount was purchased during the
FY 2016-17
• The major part of the amount was invested in plant and machinery
of ₹5,407 million and building of ₹597 million