Distribution Analysis

By

Alok Kumar Singh

Under the guidance of

Prof. Aakanksha Uppal

INMANTEC, Ghaziabad

Integrated Academy of Management and Technology

Ghaziabad

June, 2010
 Distribution Analysis

Summer project submitted

in

Partial Fulfilment of the Requirements for the Award of

Post Graduate Diploma in Management
(Recognized by AICTE, Ministry of HRD, Govt. of India)

By

Alok Kumar Singh

PG09006

Integrated Academy of Management and Technology

Ghaziabad

June, 2010

2
 Distribution Analysis

By

Alok Kumar Singh

Under the guidance of

Prof. Aakanksha Uppal

INMANTEC, Ghaziabad

Integrated Academy of Management and Technology

Ghaziabad

June, 2010

3
4
 Acknowledgement

I, with all humility, would like to extend my heartfelt thanks to Mr. Vivek Chaturvedi, Regional
Manager, East and Central India, as he allowed me to do the summer project from his organization.

I would also like to thank Mr. Vinod Kumar, Sales Officer, East Delhi and Mr. Vinay Singh, Sales
Officer, Noida, for their guidance in making the project and helping with ideas to conduct the
market survey.

I would remain ever grateful to Prof. Pankaj Gupta, Executive Director, Inmantec as his enthusiasm
and dedication has resulted in such a culmination of learning and culture, Prof. R K Singal, Dean,
Inmantec, who is the person to set the young minds to get its first flavor of Marketing Research and
he is also cynosure for all the students in Inmantec and Prof. Lata Singh, Program Coordinator, who
has always been a constant source of inspiration for us.

Not the least, I express my thanks to Prof. Aakansha Uppal, the way I have disturbed her every day
is remarkable as her patience has shown me the way.

It is all about my friends and batchmates with whom I have discussed everything, and without
whom the project would have remained another unaccomplished dream.

Alok Kumar Singh

June, 2010

5
 Table of Contents

Page
Objective 8

Details about United Biscuits 9-11

Product range of United Biscuits 12-14

United Biscuits in India 15

Details about United Biscuits distribution channel in Delhi and NCR 16-19

Research Methodology 20

Data Analysis and Interpretation 21-34

Findings and Conclusions 35

Limitations 36

Recommendation 37

Bibliography 38

Questionnaire 39-40

6
 Executive Summery

The project is aimed to find out factors which are important in restructuring the distribution network
so that effective and efficient distribution network could be made.

To accomplish my project I had to cover 5-6 kilometers each day along with company salesman. I
visited 20-40 retailers daily. Several shops have quoted negative feedback about the company
saying irregularity of sales agent as well as misinterpretation of selling contract; most of them have
been done orally. Some shops even denied initiating any conversations.

The sales officers were told by the company that every NO would also be an answer. The project
was, therefore, done in such a way that for samples giving negative feedback could also be utilized
to increase efficiency of the organization in its marketing wings and evaluate its strategies once
again.

Beside negative feedbacks, few shopkeepers gave positive response as well which are also
important for future strategy.

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 Objectives

Primary Objective –

- Identify the factors which are important in restructuring the distribution network.

- Enhancement of effective and efficient distribution network.

Secondary Objective –

- Identify the areas of improvement of United Biscuits.

- Actionable for the satisfaction of retailers of United Biscuits.

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 Details about United Biscuits Pvt. Ltd.

United Biscuits was founded in 1948 following the merger of two Scottish family businesses —
McVitie & Price and MacFarlane Lang. McVitie’s was founded in 1830 and 89% of UK households
buy McVitie’s biscuits. United Biscuits Pvt. Ltd is the UK’s leading biscuit manufacturer and No. 2
in snacks. We’re the second largest biscuit manufacturer in the Netherlands, France, Belgium and
Ireland. Key Markets of United Biscuits are Canada, USA, Sweden, Greece, Italy, Portugal, Middle
East, Australia, India and Nigeria. Key Brands of United Biscuits are McVitie’s, Fruit & Form,
Carr’s, Delacre and BN.

Trail of United Biscuits Pvt. Ltd.

• 1967 Meredith & Drew, a UK crisp manufacturer.

• 1968 Kenyon Son & Craven, a leading UK nut manufacturer.

• 1974 Keebler Company, a leading US cookie and cracker manufacturer, subsequently sold
to a number of buyers in 1995.

• 1982 Terry's of York, the confectionery company, subsequently sold to Kraft Suchard in
1993.

• 1988 Ross Young's, a leader in the UK frozen food sector. 60% stake in United Biscuits
China, with a further 30% stake bought in 1991.

• 1990 Verkade, a leading biscuit and confectionery company in the Netherlands.

• 1991 Investment in three leading European biscuit companies: Fazer Biscuits (Finland),
Oxford Biscuits (Denmark) and Gyori Keksz (Hungary). Joint venture also established in
Éire.

• 1993 The Smith's Snackfood Company, Australia's leading snackfood manufacturer

incorporating a snacks business in Italy. Derwent Valley Foods, the UK owner of the Phileas

9
 Fogg snack brand. Further investment in Oxford Biscuits (Denmark) and Gyori Keksz
(Hungary) taking investments to 100%.

• 1994 Further investment in Fazer Biscuits (Finland), taking the investment to 70%, San, a
Polish biscuit manufacturer taking investment to 90%, and Nibb-It Snacks, a Dutch
snackfood manufacturer.

• 1995 The Original Pretzel Company, Australia.

• 1997 Acquisition of the French biscuits business, Biscuiterie Nantaise (BN), from PepsiCo.
Inc. in exchange for certain continental European snack operations and the sale to PepsiCo.

• Inc. of The Smiths Snackfood Company, Australia. UB receives a net consideration of £241
million.

• 1998 Acquisition of the Continental European Biscuit Business, Delacre, from the Campbell
Soup Company for £125m. Delacre has operations in the Netherlands, Belgium, Germany,
France and exports to the USA. Meiji McVitie, UB buys out Meiji's 50% stake of the
venture to form a new company, UB Japan Ltd.

• 1999 Merger of UB's Young's seafood business with Legal & General Ventures Bluecrest to
create the largest seafood business in the UK. UB and LGV (and its associates) each hold
44% of equity of the business. Management and other finance providers will hold the
balance.

• 1999 (September) Acquired certain biscuit operations from German confectionery company,
Stollwerck. UB receives Stollerck's Hungarian biscuit business and appoints Stollwerck as
its sales and distribution agent in Germany.

10
• 1999 (October) Binding agreement reached with HJ Heinz Company for the sale of UB's
frozen and chilled food businesses (excluding chilled fish operation) for a price of £190 m
payable on completion. Regulatory clearance granted 7th December.

• 1999 (November) Sale of UB's Grimsby-based chilled fish business to Northern Foods. The
operation supplies added-value seafood products to Marks & Spencer and Waitrose.

• 2000 (April) Finalrealm acquires UB.

• 2000 (May) Sale of UB Nordic A/S and UB Denmark A/S to Danone.

• 2000 (May) Sale of UB's TUC and Cheddars brands to Danone (Jacob's). Mini-Cheddars
excluded from deal.

• 2000 (June) Sale of UB Snack Foods SpA and UB Snack Foods GmbH to Danone. This
comprises UB's Donauwörth factory in Germany and a commercial office in Italy.

• 2000 (July) Acquisition of Nabisco’s European, Middle East and North African businesses
(EMENA).

• 2000 (November) Sale of UB Malaysia and UB Singapore to Danone.

• 2000 (November) Sale of UB Hungary to Danone.

• 2001 (February) Sale of San, Poland to Danone.

• 2001 (March) Sale of 44% interest in Young’s Bluecrest Seafood Holdings Limited.

• 2001 (May) Sale of Fazer, Finland to Danone.

11
• 2002 (March) Completion of sale of United Biscuits (China) Limited and its subsidiaries to
Nabisco.

• 2003 (October) Closure of dry mix factory in Tunisia.

• 2004 (July) New subsidiary company of UBUK opened in Dublin, Ireland - UB Snackfoods
Ireland Ltd.

• 2004 (August) Acquisition of Triunfo Productos Alimentares, SA, Portugal.

• 2004 (August) Sale of Benelux Snacks business to Roger & Roger.

• 2004 (September) Acquisition of Jacob's Biscuit Group from Danone.

• 2006 (February) Acquisition of the brands Nik Naks and Wheat Crunchies from Golden
Wonder.

• 2006 (September) Completion of sale of UB Southern Europe to Kraft Foods Inc.

• 2006 (December) Sale of Business completed to The Blackstone Group and PAI.

12
 Different product range of United Biscuits

McVitie's - McVitie’s biscuits have been enjoyed by generations for around 160 years. The first
ever digestive biscuit was created by a new young employee, Alexander Grant. The name Digestive
was derived from its high content of baking soda as an aid to food digestion. Over one hundred
years later the McVitie’s Digestive remains a firm favourite and is the highest selling brand in the
everyday biscuit segment.

Jacob's - W & R Jacob’s Ltd was founded by brothers William and Robert in 1851. The first Cream
Cracker was produced in 1885 in a Dublin factory. Between 1914 and 1958 Jacob's grew,
expanding in England with the building of the Aintree factory near Liverpool. In 1982, Nabisco
bought Associated Biscuits (formed in 1969 with the merger of Jacob's and Associated Biscuit
Manufacturers Limited). In 1989, the company was renamed as The Jacob's Bakery Limited and
acquired by B.S.N. (Danone). In 2004 Jacob's was acquired by UB.

Twiglets - Twiglets are one of Britain’s classic snack brands. Originally developed by Peak Frean
and and first launched in time for Christmas in 1929, Twiglets are now manufactured in the Jacob's
factory in Aintree. Twiglets are a unique wholewheat product within the bagged snacks and sharing
market. There is a huge amount of brand loyalty with people enjoying Twiglets for their multi-
dimensional taste and texture. The extra crunchy bite and knobbly shape combined with the unique
flavour make Twiglets irresistible for many.

Phileas Fogg - Phileas Fogg is perhaps the UK's most characterful snacking brand. Opened by four
entrepreneurs in March 1982 as Derwent Valley Foods, in the unlikely location of a portacabin in
Consett, the company aimed to provide the first adult premium snacks in the UK, with a brand
distinguished by its authenticity and quality. Built around the phrase 'Finest Food from around the
World' the team developed an array of appetisingly tasty snacks and this, together with quirky
advertising, made Phileas Fogg an icon of the late 1980s and early 1990s. In March 1993, Phileas
Fogg was acquired by United Biscuits and is now incorporated in our snacks range.

Hula Hoops - 2006 was an exciting year for Hula Hoops, as the whole range was made healthier.
They are made with 100% sunflower oil and contain no artificial colours or flavours or MSG. Hula
Hoops contain 80% less saturated fat than in 2005, are lower in sodium and still have the same great
taste. Hula Hoops are available in the following permanent flavours: Original, Salt & Vinegar,
Cheese & Onion, BBQ Beef & Roast Chicken.

BN - Created in 1897, BN is seen as a traditional brand and it enjoys a good reputation in France.
Over the years, BN has established itself as an indispensable brand in the children’s biscuit market,
focusing in particular on the snack sandwich cookie segment. Listed among the ten most popular
brands among children in France, BN relies on the strength of its image as a unique brand, that of a
biscuit with an appetising smile.
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go ahead! - go ahead! was launched in 1996 into the biscuits category and quickly became the
UK’s No.1 lower fat biscuits range. Since 2000 the healthier snacks market has grown significantly

as consumers have become more health conscious. The choice and variety within the healthier
biscuits category is phenomenal and sees the sector now worth over £373m. This is now the biggest
sector in the biggest market and is the fastest growing.

Sultana - Founded in 1886 in Zaandam in the Netherlands, starting off mainly with the production
of bread and rusks, Verkade has brought a wide range of delicious biscuits and chocolate to Dutch
consumers ever since. The Verkade brand is known by nearly all Dutch consumers, who have
appreciated Verkade classics since childhood. The Sultana biscuit was launched as a tea biscuit with
raisins and currants more than fifty years ago by Verkade. Nowadays, Sultana offers a complete
range of products to consumers and has become a star brand under the Verkade name.

Skips - Skips is the favourite distinctive Prawn Cocktail flavoured snack with a unique, well
recognised petal shape. It was first launched in 1974. Skips are created using Japanese technology,
under license from Meji, to create the unique tongue-tastic mouth experience on the tongue. Skips
are identifiable by their star shaped red veins running through the petal. Skips are available in
Prawn Cocktail flavour. Sizzling Bacon flavour and Utterly Cheesy flavour were launched in 2005
in multipacks, offering fun and variety to the consumers.

Penguin - Penguin was first produced in 1932 by William McDonald, a biscuit manufacturer in
Glasgow, and became a McVitie’s brand when McDonald joined with McVitie’s and Price,
MacFarlane Lang & Co and Crawford to form United Biscuits in 1948. Penguin is enjoyed by
families with young children.

Mini Cheddars - Mini Cheddars have been around for over 20 years and are still the UK’s no.1
savoury baked snack, delivering a substantial savoury hit and satisfaction. Since 2001 the brand has
enjoyed strong growth through the introduction of a 50g pack. Mini Cheddars is one of the UK's
most established snack brands and is loved by a wide range of different consumers. Despite its
deceptive size, Mini Cheddars delivers a surprisingly satisfying cheesy hit any time the munchies
strike. Aimed at a broad target, mainly families, Mini Cheddars are ideal for when you have the
tummy rumbles and you want something genuinely cheesy to keep you going until meal time.

McCoy's - McCoy’s was launched in 1985 as the “big chip from the big country”, the definitive
ridged cut potato chips with real flavours. Standard McCoy's were launched in 1987. The McCoy’s
brand is now the 3rd biggest brand in the bagged snacks market. The Real McCoy's ridge cut crisps
were designed and built with men in mind to give a substantial and involving eat that could satisfy
the male appetite using real potatoes with real food flavours.

KP - KP originally began life as a manufacturer of sugar confectionery, jams and pickle in 1853.
KP Nuts is brand leader in the UK Nuts category dominating the total convenience and impulse
market. Its nuts have been the snack of choice eaten at parties and pubs all over Britain for more
than 50 years. To consumers KP Nuts is the brand synonymous with quality peanuts. It is distinctly
positioned as an adult snack brand for everyday in-home socialising, at the pub or eating on the go.
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KP Nuts has a strong affinity with drinking and socialising with 40% of ‘eating occasions’ being
with alcohol, especially over the peak social seasons – Summer and Christmas.

Carr's - Carr's Table Water biscuits in their original form first appeared in the late 19th Century as
a refinement of the ship's biscuit. Carr's is the leading premium cracker brand and the range consists
of the following products: Carr's Table Water, Carr's Melts range, Carr's Selections and now Carr's
Nibbles.

McVitie's Jaffa Cakes - McVitie’s Jaffa Cakes were introduced over 60 years ago and the brand is
now the 4th biggest in the biscuit market. Over 3 million McVitie’s Jaffa Cakes are made every day,
each taking 18 minutes to make. The original recipe is a closely guarded secret, but the delicious
combination of light sponge, plain chocolate and the smashing orangey bit in the middle has made
McVitie’s Jaffa Cakes infinitely loved by the British nation.

Delacre - Established in the 1870s, Delacre was first known for its Belgian chocolate. Acquired by
UB in 1998, the Delacre brand has quickly gained a reputation as a specialist in adult biscuits
though impactful communication on its core biscuits and recent innovative launches (for example,
Fou de Chocolat in October 2002). Delacre is well known for its wide range of indulgent biscuits in
both France and Belgium. The core of the Delacre product portfolio consists of various high quality
biscuit assortments, in which luxury chocolate biscuits dominate.

Verkade - Over the 50-plus years of its existence, Sultana has become a star brand under the
Verkade name and other classics include San Francisco, Maria, Knappertjes, Café Noir, Nizza and
Sprits. In recent years the Verkade biscuits portfolio has been successfully extended from the
‘classical’ range with biscuits from United Biscuits overseas, such as Digestives from England, BN
from France and most recently Délichoc from Belgium. The Verkade brand is also present in
France, with the Fruit & Form range and Verkade Bio range.

15
 United Biscuits in India

In India United Biscuits started its operation in 2009. United Biscuits purchased the plant of Bonn
brad (S.S. foods) with the investment of 15-20 crores located at Kala Amb industrial area in
Himachal. However in totality UB has already made an investment of 40 crores for this plant and
also planning to invest more. UB identified as a market with great potential than it made foray into
the Indian market by deciding the production in Himachal Pardesh. UB India today directly and
indirectly employees over 1000 people and also plans to continue expanding its presence in the year
2010.

Product range of United Biscuits in India

McVitie's Digestive – United Biscuits have launched McVities Digestive in 82gm pack priced Rs.
10/- and 230gm pack priced Rs 30/- and would be competing with Britannia Marie Gold and
NutriChoice and Sunfeast Marie Lite.

McVitie's Cream – Mcvities Cream chocolate flavour in 75 gm priced Rs 12/- and would be
competing with Britannia Cream Biscuits.

McVitie's Cashew Cookies – United Biscuits have launched Mcvities Cookies in 68gm pack
priced Rs 10/- and would be competing with Britannia Good Day and Sunfeast Special.

McVitie's Butter Cookies – United Biscuits have launched McVities’s Butter Cookies in 68gm
pack priced Rs 10/- and would be competing with Britannia Butter Cookies.

Competitors of United Biscuits in India

The existing market leaders in the Indian biscuit market are –

1 - Parle

2 - Britannia

3 - ITC

16
Some other strong regional brands such as Priya Gold in the north, Cremica in the west and Dukes
in the south.

Distribution Channel

A channel of distribution is a group of individuals and organization that directs the flow of products
from producer to customers. The main function of this element is to find out appropriate ways
through which goods are made available to the markets.

Types of Distribution Channel –

Manufacturer 1- Consumer

Manufacturer 2- Retailer Consumer

Manufacturer Wholesaler Retailer Consumer

3-

Wholesaler Jobber

Manufacturer 4- Retailer Consumer

Distribution Channel of United Biscuits Pvt. Ltd. in Delhi and NCR -

United Biscuits has its manufacturing plant in industrial area of Kala Amb, Nahan Dist, Himachal
Pradesh. In India United Biscuits has only one manufacturing plant and making plan to open
another manufacturing plant also. For product Supply Company use Land Transport. Its land
transport is based on Roadways. Company use trucks for their product supply from plant to sales
depot in Delhi.

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United Biscuits has its Sales Depot in Industrial Area of Patpar Ganj, New Delhi. This sales
depot is company own warehouse. From this sales depot biscuits supplied in Delhi and NCR
regions. United Biscuits has many stockiest points in Delhi and NCR. From the sales depot biscuits
are supplied to different stockiest points.

There are 22 sales officers in Delhi and NCR who are appointed at different stockiest point to
regulate the distribution network. Under the guidance of each sales officer 2-4 sales men work at a
particular stockiest point.

Each sales officer has many beat plans for a particular area and as per beat plan sales men visit
retailers to take orders from them. Most of the orders are supplied by next day. At this level biscuits
are supply by stocker’s vehicle. For supply they use van. These retailers sell biscuits to consumers.

Manufacturer

Sales Depot

Wholesalers
(stockiest points)

Retailers

Consumers

18
 Distribution Channel of United Biscuits in Delhi and NCR

Selection of Wholesalers (stockiest point)

United Biscuits followed following strategies for the selection of wholesalers.

1 – Dealership - Wholesaler has other FMCG companies’ dealership such as Mother Dairy, Amul,
Haldiram and many more.

2 – Location – Centrally located in a particular potential market.

3 – Warehouse – Wholesaler has warehouse so that inventory can managed.

4 – Identity – Wholesaler has good image in the market so that company can make good relation
with the retailers.

Beat Planning –

United Biscuits followed following strategies for the selection of Beat Planning.

1 – Company divided a particular are in many Beat such as East Delhi has divided into 50 Beat
approx.

2 – Each Beat has 40 retailers approx.

3 – Company focused those retailers who are good in FMCG business.

4 – As per sales volume Beats are divided into category A, B and C.

5 – As per sales volume retailers are also divided into category A, B and C.

6 – Company mainly focuses ‘A’ category retailers so that company can increase sales growth and
revenue.

7 – Company gives special sales promotion offer to ‘A’ category retailers.

Selection of Sales Displays –

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Sales displays have become very common these days. Good displays attract the customers and raise
the sales of the products. It requires creativity and good arrangement of displays. United Biscuits
sales displays play a very important role in pushing the product to the customer and to popularize it.
They act as silent salesmen and induce the customer to come into the shop. United Biscuits sales
displays are used to maximize product exposure, stimulate product interest, facilitate sales
transactions, ensure product security, and keep reminding customers of his purchase.

For Sales Displays United Biscuits selected those retail stores which are located in potential market
and people of that particular area know the retail store. These retail stores have heavy amount of
product sales of biscuits.

Company pays Rs. 300/- to Rs. 500/- as sales display amount on monthly basis.

Advertising and Sales Promotion -

Advertisement is any paid form of nonpersonal and promotion of ideas, goods, or services by an
identified sponsor. United Biscuits promoting its McVitie’s Biscuits by Television Ads.

Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy.

For consumers United Biscuits has following sales promotion objective –

1 - Encourage purchase of larger size units

2 - Build trial among non users and
3 - Attracting switchers away from competitors’ brands.

For retailers United Biscuits has following sales promotion objective –

1 - Persuading retailers to carry new items and higher levels of inventory

2 - Encourage off season buying
3 - Building brand loyalty and
4 - Gaining entry into new retail outlets

Tools used United Biscuits for consumers’ promotion –

1 - Sample
2 - Coupon

Tools used United Biscuits for retailers’ promotion –

1 – Price off

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 Research Methodology

- Marketing Research: Quantitative Research

- Data:

Primary Data: Collected by field work

Secondary Data: Collected by books and internet

- Research Approach: Survey method

- Research Instrument: Questionnaire

- Type of Questionnaire: Structured

- Type of Questions: Close-ended and open-ended questions

- Target Population: Retailers

- Sample Size: 100

- Sampling Technique: Convenience Sampling

- Sample Areas:
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Noida – Sec. 11, 12, 14, 15, 17, 19, 20, 21, 22, 23, 27, 33, 34, 50, 53, 55, 56 and 71.

Data Analysis and Interpretations

1) - Which brand of biscuits do you have?

McVitie’s 100
Parle 99
Britannia 99
ITC 99
Others 99
All 99

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 Interpretation – Survey shows that McVitie’s Biscuits are sold at all the 100 shops and
other biscuits are sold at 99 shops. As per data we can say that Noida is a potential market
for McVitie’s Biscuits.

2) – Which brand is more in demand?

McVitie’s 1
Parle 38
Britannia 52
ITC 25
Others 0

23
 1

25

38 McVitie's
Parle
Britannia
ITC
Others

52

Interpretation – In 100 sample shops one shop sales only McVitie’s that’s there are no
competition. Most Demanded biscuits are Britannia 52% followed by Parle 38% and ITC
25%. In some shops demand of two biscuits are same such as Parle and Britannia.

3 A) - Rate the Packaging.

1 - Bad, 2 – Average, 3 – Good, 4 – Very Good, 5 - Excellent

Packaging Bad Average Good Very Good Excellent

McVitie's 0 10 70 20 0
Britannia 0 0 35 65 0
Parle 0 0 60 40 0
ITC 0 5 55 40 0

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Interpretation - For McVitie’s packaging 10% retailers said that its average, 70% said
good, 20 said very good. For Britannia 35% said good and 65% said very good. For Parle
40% said good and 60% said very good. For ITC 5% said average, 55% said good and 40%
said very good.

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3 B) - Rate the Price.

1 - Bad, 2 – Average, 3 – Good, 4 – Very Good, 5 – Excellent

Price Bad Average Good Very Excellent

Good
McVitie's 0 15 85 0 0
Britannia 0 0 35 65 0
Parle 0 0 40 60 0
ITC 0 0 55 45 0

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 Interpretation - For McVitie’s price 15% retailers said that its average and 85% said good.
For

Britannia 35% said good and 65% said very good. For Parle 40% said good and 60% said very

good. For ITC 55% said good and 45% said very good.

Quality Bad Average Good Very Excellent

Good
McVitie's 0 10 55 35 0
Britannia 0 0 30 70 0
Parle 0 0 50 50 0
ITC 0 0 60 40 0

3 C) - Rate the Quality.

1 - Bad, 2 – Average, 3 – Good, 4 – Very Good, 5 – Excellent

27
 Interpretation - For McVitie’s quality 10% retailers said that its average, 55% said good and

35% said very good. For Britannia 30% said good and 70% said very good. For Parle 50% said

good and 50% said very good. For ITC 60% said good and 40% said very good.

3 D) - Rate the Quantity.

1 - Bad, 2 – Average, 3 – Good, 4 – Very Good, 5 – Excellent

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Quantity Bad Average Good Very Excellent
Good
McVitie's 0 15 85 0 0
Britannia 0 0 35 65 0
Parle 0 0 35 65 0
ITC 0 0 45 55 0

Interpretation - For McVitie’s quality 15% retailers said that its average and 85% said very

good. For Britannia 35% said good and 65% said very good. For Parle 35% said good and

65% said very good. For ITC 45% said good and 55% said very good.

29
3 E) - Rate the Availability.

1 - Bad, 2 – Average, 3 – Good, 4 – Very Good, 5 – Excellent

Availability Bad Average Good Very Excellent

Good
McVitie's 0 20 80 0 0
Britannia 0 0 55 45 0
Parle 0 0 45 55 0
ITC 0 70 30 0

30
Interpretation - For McVitie’s quality 20% retailers said that its average and 80% said very

good. For Britannia 55% said good and 45% said very good. For Parle 45% said good and

55% said very good. For ITC 70% said good and 30% said very good.

4) - How did you get to know about McVitie’s biscuits?

Newspaper 0
TV Commercials 10
31
Magazines 0
Outdoor Media (Banners, Hoardings, etc) 0
Any other 100

Interpretation – All retailers know about McVitie’s biscuits by regular visit of sales men,
and wholesaler. Among all this 100 retailers’ only 10% retailers are aware about McVitie’s
TV Ads.

32
5) - Which flavor of McVitie’s biscuit is demanded the most by the customers?

McVitie's Digestive 70
McVitie's Cream 13
McVitie's Cashew Cookies 23
McVitie's Butter Cookies 3

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Interpretation – Digestive demand is 70%, Cashew Cookies demand is 23%, Cream
demand is 23% and Butter Cookies demand is 3%. Butter Cookies demand is less because it
is recently launched in market.

6) - How frequently the salesmen of McVitie’s visit your shop?

Within 7 days 70
Within 15 days 25
Within 30 days 5
After 30 days 0

34
Interpretation – Sales Men of United Biscuits visit retailers as per his beat plan. Sales Men
Bad 7 visit 70%
Average 45 retailers
within 7
Good 48
days,
Very Good 0 25%
Excellent 0 retailers
within 15
days and 5% retailers within 30 days.

7) - How is the service of McVitie’s biscuits in terms of supply at your shop?

35
Interpretation – 7% retailers said that McVitie’s biscuits supply is bad, 45% said average
and 48% said good.

8) - Are you satisfied with the distributer of McVitie’s?

36
 Yes 66

No 34

Interpretation – 66% retailers said that they are satisfied by distributer and 34% said that
they are not satisfied with distributer.

37
9) - Are you aware of McVitie’s promotional offers?

Yes 80

No 20

Interpretation - 80% retailers said that they are aware about promotional offer and 20%
said that they are not aware about promotional offer.

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10) – What are your suggestions for the company?

1 – Package size is small as compare to other biscuits such as Parle and Britannia.

2 – Different variety of biscuit should be more.

3 – Package weight is lesser than other biscuits such as Parle and Britannia.

4 – Supply Chain should be effective.

5 – Advertisements should be more.

6 – Biscuits test should be more effective.

7 – Rs. 12/- McVitie’s Cream price should be 10/-. There is problem of change.

8 – Sales Men and officer visit should be on time.

39
9 – Before launching any new flavor of biscuit, sample should be distributed.

10 – Replacement and Sales Displays be on time.

40
 Findings

1 – Noida is potential market for McVitie’s biscuits.

2 – In Noida Britannia is most demanded biscuits.

3 - Only 10% retailers are aware about McVitie’s TV ads.

4 – Digestive is most selling biscuits. In 70% retail stores digestive sale is more than McVitie’s

other biscuits.

5 – Sales Men cover 70% retail stores within 7 days.

6 – MCVitie’s biscuits supply is good only at 48% retail store.

7 - 66% retailers are satisfied with the distributer.

8 – 20% retailers are not aware about McVitie’s promotional offers.

9 – McVitie’s price is higher than other competitors.

10 – Retailers need different size of package and varieties of biscuits also.

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 Limitations

1 – Time – For accomplishment of project I have only 42 days, but for the research I required

more time.

2 – Area – Survey is based on Noida City’s retailers.

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3 – Sample Size – I had only 100 sample size for the survey which is less for Noida City.

4 – Retailers do not have enough time to response the questionnaire.

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 Recommendations

1 – Proper supply chain should be so that biscuits can be supply on time and reduce stock out

problem.

2 – No need to cover those areas which is not potential for McVitie’s biscuits supply.

3 – More focus ‘A’ and ‘B’ category of retailers rather than wasting time and money on ‘C’

category retailers.

4 - Focus more on advertising and sales promotion.

5 – Give proper training to sales men about the selling techniques.

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45
 Bibliography

1 – www.unitedbiscuits.com

2- http://business.mapsofindia.com/india-industry/biscuits.html

3 - http://nvonews.com/2010/02/03/united-biscuits-all-set-to-launch-in-himachal

4 – Sales and Distribution Management by Dr Martin Khan, Page No 162- 168 and Page

No 253 – 268.

5 – Marketing Management (A South Asian Perspective) by Philip Kotler, Kevin Lane Keller,

Abraham Koshy and Mithileshwar Jha, Page No 486- 503.

6 – Marketing Research by Harper W. Boyd, Jr. Ralph Westfall and Stanley F. Stasch, Page No

407.

7 – Marketing Research by Naresh K. Malhotra, Page No 183.

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 Questionnaire on McVitie’s Biscuits

Please tick the answer you like the most. ( )

1) Which brand of biscuits do you have?

a. McVitie’s
b. Parle
c. Britannia
d. ITC
e. Others
f. All

2) Which brand is more in demand?

a. McVitie’s
b. Parle
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 c. Britannia
d. ITC
e. Others

3) Rate the following.

1 – Bad, 2 - Average, 3 – Good, 4 – Very Good, 5 – Excellent

Packaging Price Quality Quantity Availability

a. McVitie’s
b. Britannia
c. Parle
d. ITC
e. Others

4) How did you get to know about McVitie’s biscuits?

a. Newspaper
b. TV Commercials
c. Magazines
d. Outdoor Media (Banners, Hoardings, etc)
e. Any other………………………………..

5) Which flavor of McVitie’s biscuit is demanded the most by the customers?

a. McVitie’s Digestive
b. McVitie’s Cream

c. McVities Cashew Cookies

d. McVities Butter Cookies

6) How frequently the salesmen of McVitie’s visit your shop?

a. Within 7 days
b. Within 15 days
c. Within 30 days
d. After 30 days

7) How is the service of McVitie’s biscuits in terms of supply at your shop?

a. Bad
b. Average
c. Good
d. Very Good
e. Excellent

8) Are you satisfied with the distributer of McVitie’s?

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 a. Yes
b. No

9) Are you aware of McVitie’s promotional offers?

a. Yes
b. No

10) What are your suggestions for the company?

…………………………………………………………………………………………………………
…………………………………………………………………………………………………………
…………………………………………………………………………………………………………

Name: -
………………………………………………………………………………………………………

Age: - ……………………………………………………………………………………………..

Address: -
…………………………………………………………………………………………………………

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