SUMMER INTERNSHIP REPORT

On

“New Product Launch and Sales Channel Strategies for Safpro

Industries Private Limited”
Undertaken at

Safpro Industries Private Limited

Gujarwadi, Katraj, Pune.

A Project Report Submitted in Partial Fulfilment of the requirements For the

Award of the degree of

POST GRADUATE DIPLOMA IN MANAGEMENT (AGRI BUSINESS

MANAGEMENT)
To

AUDYOGIK SHIKSHAN MANDAL’S INSTITUTE OF BUSINESS MANAGEMENT

AND RESEARCH, PIMPRI-CHINCHAWAD, PUNE.

By

BATCH: 2020-2022

1
 Under the guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Prof. Vijay Khode Sir Mr. Neelkanth Shinde

Head of Department Director of Safpro

ASM IBMR, Pune. Industries Pvt. Ltd.

2
3
 DECLARATION

I hereby declare that this report titled, “New Product Launch and Sales Channel
Strategies for Safpro Industries Private Limited”, submitted in partial
fulfilment of the requirement of the award for the degree of “POST GRADUATE
DIPLOMA IN MANAGEMENT (AGRI BUSINESS MANAGEMENT)” to
ASM’s Institute of Business Management and Research, is my original work and
not submitted for award of any degree or diploma fellowship or for similar titles or
prizes.

I further certify that I have no objection and grant the rights to ASM’s Institute of
Management and Research to publish any chapter/ project if they deem fit in
Journals/ Magazines and newspapers etc. without my permission.

Place: - Pune

Date: -

Name: - Mrinali Nandakishor Potdukhe

Class: - PGDM (ABM), Sem - III

Roll No.: -

Batch: - 2020-22

4
 ASM’S
Institute of Business Management & Research

Certificate

This is to certify that Miss. Mrinali Nandakishor Potdukhe of ASM’s

Institute of Business Management & Research, Pimpri-Chinchwad, Pune has
successfully completed the project work titled “New Product Launch and Sales
Channel Strategies for Safpro Industries Private Limited” in partial fulfilment
of requirement for the completion of ABM course prescribed by the ASM’s Institute
of Business Management & Research, Pimpri-Chinchwad, Pune. This project
report is the record of authentic work carried out by her during the period from 23rd
July 2021 to 23rd October 2021 she has worked under my guidance.

Course Coordinator
(Prof. Vijay Khode Sir)

Director
(Sandip Sane Sir)

Date:

5
 Acknowledgements

I would like to take this opportunity to thank each and every individual who helped
me to complete my summer internship project successfully.

The internship opportunity I had with Safpro Industries Private Limited is a great
chance for learning and professional development. I am also grateful for getting a
chance to meet so many wonderful people and professionals who led me through this
internship period. I express my sincere gratitude to my industry mentor Mr.
Neelkanth Shinde and Mr. Anirudha Kshirsagar, Directors of Safpro Industries
Private Limited for supervising me at every stage of the project and giving necessary
advices, without that the task would not have been accomplished.

I extended my deep gratitude to Dr. Sandip Sane, Director, ASM’s IBMR Pune, for
always being helpful and supportive in every task done in institute. I am extremely
thankful and pay my sincere gratitude to my academic mentor Prof. Vijay Khode Sir,
for his valuable guidance and support to complete this project. I extend my gratitude
to Placement Head Mr. Rajesh Jagtap Sir, for giving me this opportunity.

I also acknowledge with a deep sense of reverence, my gratitude towards my parents

who have always supported me morally as well as economically.

Last but not the least gratitude goes to all my friends who directly or indirectly helped
me to complete this project.

I perceive this opportunity as a big milestone in my career development. I will strive

to use gained skills and knowledge in the best way and I will continue to work on
their improvement, in order to attain desired career objectives. Hope to continue
cooperation with all of you in the future.

Sincerely,

Mrinali N. Potdukhe

6
 Table of contents

Chapter No Particular Page No

Executive Summary 9
Chapter 1 Introduction 10
1.1 Introduction to Industry 10
1.2 Government Initiatives 12
1.3 Macro Economic Factors 13
Chapter 2 Introduction to the Company 18
2.1 Introduction to the company 18
2.2 Company profile 18
2.3 Product profile 19
2.4 Vision 20
2.5 Mission 21
2.6 Structure of the company 21
2.7 Certification 23
2.8 Area of business & Performance 24
2.9 Product categories 25
2.10 Product mix for Safpro Industries Pvt. Ltd. 36
2.11 Details of Main products & Services 37
2.12 SWOT Analysis 38
2.13 Competitor Analysis 14
Chapter 3 Introduction to the Project 40
3.1 Introduction to the Project 40
3.2 Literature Review 41
3.3 Objectives of the Project 43
Chapter 4 Research Methodology 44
4.1 Title of the study 44
4.2 Duration of the project 44
4.3 objectives of the study 44
4.4 Research Design 44
4.5 Location 45
4.6 Data collection Method 45
Chapter 5 Data Analysis and Findings 46
Chapter 6 Conclusions & 59
Recommendations

7
 6.1 Scope of the study 59
6.2 Findings 59
6.3 Recommendations & Suggestions 60
6.4 Conclusions 61
Chapter 7 Limitations & Learnings 62
7.1 Limitations of Study 62
7.2 Learnings 62
7.3 Value Additions 63
7.4 Bibliography 64
Chapter 8 Annexure-Ⅰ 65

8
 Executive summary

The summer internship activity is divided into two main tasks. The first task of the project was
aimed at understanding the way Sales and Distribution is carried out for SAFPRO INDUSTRIES’
products, Sauces and Mayonnaise and facilitate selling those to distributors and retailers. The
project location is Katraj, Pune.

The second phase of the project was Market Research. This was carried out through surveying and
studying market efficiently. It was all about consumer’s choices, demands, expectations and needs.
It was a good experience as I have learnt various aspects of market variations and new trends. It also
helped me to learn how to take place surveys and customer feedbacks. Choices, demands and needs
vary according to the consumers. These cannot be same all the time. So, it’s challenging to fulfil
those.

9
 Chapter 1

Introduction
1.1 Introduction to Industry:
For long, Tomato Ketchup has been the mainstay of the condiments segment in India. This is
changing with the entry of numerous dips, sauces and spreads. Euromonitor International estimates
that the market for table sauces in India stood at Rs 2,105 crore in 2017, and is projected to grow to
Rs 3,231 crore in 2020. Mayonnaise, which had a market value of Rs 292 crore in 2017, grew to Rs
594 crore in 2020.

The past year saw non-traditional players, the likes of Jubilant FoodWorks and craft beer company
Simba, foray into this segment, and established companies like Del Monte Foods roll out newer
products. Though companies in this segment have been impacted due to a decline in sales from the
HoReCa segment (Hotels, Restaurants and Catering), their retail sales have risen considerably. Del
Monte witnessed a 40-50% year-on-year growth in the dips and spreads category, while Dr Oetker
claims its Italian sauces range, under FunFoods, has grown threefold, compared to the pre-Covid
period. On BigBasket, the dips, sauces and spreads segment has seen 100% growth since January.

FMCG giants Hindustan Unilever and Nestlé have a presence in this category through their brands
Kissan and Maggi, respectively. Mrs Bector’s Cremica and Veeba Foods are two other active
players in this segment, and start-ups such as Wingreens Farms, Epigamia, Urban Platter and
Licious, too, have dabbled in it. While Tier III players like Mealtime, Adinath Agro, Sam’s etc. are
making their presence felt in the market.

BigBasket has launched 30 stock keeping units (SKUs) under its private label Happy Chef in the
past six months. The company’s original range, launched about four years ago, included basic
sauces; it has now added variants like black olive pasta sauce and Malaysian sauces.

Del Monte Foods is going with “value pricing” in the base variants, and a “mid-premium
positioning” for its more experimental products. In October 2020, the company introduced a range
of oriental sauces and a momo dip. A 900gm pouch of eggless mayonnaise is priced at Rs 165,
which is the top seller; at the same time, flavours like cheesy garlic mayo, achari mayo are offered
in squeezy top-down bottles and jars. A 265gm jar of its Cheesy Garlic Mayonnaise is priced at Rs
85.

The uptake in dips and sauces is no longer concentrated in the metros. According to a recent report
by Nielsen, the convenience foods category — which includes ketchup, sauces, ready-to-eat
products and cheese — grew three-times faster in smaller towns, as compared to the metro cities
during January-September 2020.

Wingreens Farms has been increasing its presence on online channels to reach the smaller towns.

The market is still dominated by tomato ketchup and, to some extent, mayonnaise. Dr Oetker
decided to cut down on its niche offerings and focus instead on the base flavours. At a time, when
necessity is the need of the hour, consumers do not need exotic flavours of mayonnaise, but
products they frequently consume.
10
Experts believe that given the convenience in cooking these products offx xer, they are likely to
find takers even post pandemic, albeit not at the same level. To drive adoption for these products
further, companies will need to invest in product development and introduce single-use packaging.

The total Sauces, Mayonnaise and Dressings market by Sales value in India is valued at USD 3.47
bn. Amidst the Corona the market is poised to see slowdown in the HoReCa segment while the
FMCG segment is expanding. Overall market is bound to see a CAGR of above 20%.

11
1.1.1 Government Initiatives:

India has spearheaded a range of efforts to introduce fundamental and modernizing changes to the
economy such as increasing digital transactions, cutting red tape, increasing efficiency, introducing
the Goods and Services Tax, among others. This rethinking and restructuring of the economy
created room for growth and improvement in areas such as food and product retail.

New initiatives like a planned infrastructure spend of around INR 100 lakh crore (around $1 Trn)
and INR 25 lakh crore to boost the rural economy have put the food processing sector on a high
growth trajectory. The Pradhan Mantri Kisan Sampada Yojana. For example, is a comprehensive
package which shall create modern infrastructure with efficient supply chain management from
farm to retail outlet. The scheme of Formalization of Micro Food Processing Enterprises (FME) is
being rolled out with an outlay of INR 10,000crore.

India’s food sector attracted $ 4.18 Bn in foreign direct investment between April 2014-March
2020. India is one of the largest producers of a range of agricultural products and as the global
population grows, demand for made in India food is ever rising.

1.1.2 Growth Drivers:

Anticipated growth in the market can be attributed to increasing cross-cultural interaction,

inclination towards consumption of western food & cuisines and growing number of modern retail
outlets offering price and convenience advantages to the customers.

Moreover, increased focus on R&D activities in the food industry has brought various development
in food quality and innovations in products such as sugar-free and gluten free condiments which is
stimulating the trend of healthy living. This factor is expected to provide ample opportunities for the
condiments market during the forecast period.

Additionally, emergence of diet sauces and other condiments is also expected to fuel growth in the
market. Furthermore, increasing standards of living, changing lifestyle and rising demand for
sophisticated taste in meal are emerging trends in the industry.

12
1.2 Macro-Economic Factors:

India is currently world’s seventh largest economy in terms of nominal GDP where its share of
world GDP is 3.20% and is the third largest economy in the world in PPP terms which is
contributing 7.80% share towards the world GDP. India has sustained an average growth of 6-7%
since Financial Year 1991and has become the fastest growing G20 economy since Financial Year
2015, with annual growth rates hovering around 7%. While India’s economy grew at ~7% in
Financial Year 2019, the real growth rate went down to 4% in Financial Year 2020, and is estimated
to dip down to –5% in Financial Year 2021 due to the outbreak of COVID-19 pandemic leading to
the imposition of a lockdown towards the last quarter of Financial Year 2020 and a major part of the
first quarter of Financial Year 2021. The impact of COVID-19 has caused several large economies
to shrink. It is being estimated that India’s GDP is expected to resume its pre-COVID-19
momentum by Financial Year 2022.

Factors that may adversely affect the Indian economy, and hence our results of operations
may include:

• Any exchange rate fluctuations, the imposition of currency controls and restrictions on the
right to convert or repatriate currency or export assets.

13
• Any scarcity of credit or other financing in India, resulting in an adverse effect on economic
conditions in India and scarcity of financing for our expansions.

• Prevailing income conditions amongst Indian customers and Indian corporations.

• Epidemic or any other public health emergency in India or in countries in the region or
globally, including in India’s various neighbouring countries.

• Macroeconomic factors and central bank regulation, including in relation to interest rates
movements which may in turn adversely impact our access to capital and increase our borrowing
costs.

• Volatility in, and actual or perceived trends in trading activity on, India’s principal stock
exchanges.

• Decline in India’s foreign exchange reserves which may affect liquidity in the Indian
economy.

• Downgrading of India’s sovereign debt rating by rating agencies and

• Difficulty in developing any necessary partnerships with local businesses on commercially

acceptable terms and/or a timely basis.

Any slowdown or perceived slowdown in the Indian economy, or in specific sectors of the Indian
economy or certain regions in India, could adversely affect our business, results of operations and
financial condition and the price of the Equity Shares. Further, a number of countries in Asia,
including India, as well as countries in other parts of the world, are susceptible to contagious
diseases and, for example, have had confirmed cases of diseases such as the highly pathogenic
H7N9, H5N1 and H1N1 strains of influenza in birds and swine and more recently, the COVID-19
virus. The World Health Organization and other agencies have recently issued warnings on the
COVID-19 virus and on a potential avian or swine influenza pandemic if there is sustained human-
to human transmission.

If any of our employees are identified as a possible source of spreading COVID-19, swine flu, avian
flu or any other similar epidemic or pandemic, we may be required to quarantine employees that are
suspected of being infected, as well as others that have come into contact with those employees and
we may have to shut down a part of or the entire manufacturing facility for certain period, 51 which
could have an adverse effect on our business operations. Further, the process of obtaining and/or
renewing necessary registrations, approvals, licenses and permits from statutory/regulatory
authorities is also likely to be impacted by the governmental restrictions and lockdowns. A
worsening of the current outbreak of COVID- 19 virus or future outbreaks of COVID-19 virus,
avian or swine influenza or a similar contagious disease could adversely affect the Indian economy
and economic activity in the region. As a result, any present or future outbreak of COVID- 19,
Avian or Swine influenza or other contagious disease could have a material adverse effect on the
industry.

14
1.2.1 Growth Opportunities in Sauces and Dressings Sector:

Sauces-dipping and cooking as a food segment is seeing a steady spike as people are getting swish
with their culinary experiments to bring home the joys of dining out, as many restaurants, cafes, and
pubs continue to remain shut to curb the spread of coronavirus.

According to data from Kantar Worldpanel, which tracks purchases of over 80,000 Indian
households every month, sale of sauces alone grew by 32 percent in the March to June 2020 period.

While ketchup has been the traditional and most popular table sauce in India for years,
demonstrating strong value growth year-on-year, other sauces like mayonnaise, salsa, sweet onion,
etc have been fast catching up.

According to industry experts, thanks to the recent boom in the fast-food industry, changing
lifestyle, and the huge influence of international cuisine on rising economies like India, the demand
for sauces in the last five years has surged manifold.

Globally too, this has been the trend. According to Research and Market’s forecast, from 2020 to
2025, the global sauces and dips market is projected to soar at a CAGR of 6.97 per cent from a
market size of $138.195 billion in 2019 to a market size of $207.049 billion by the end of 2025.

In India, the addition of new varieties of sauces, dressings and dips to the traditional fare, especially
catering to the Indian consumer’s global palate by companies like Veeba Food Services, Cremica,
Del Monte have further pushed sales in this food segment.

On the brighter side, retail consumption increased dramatically. Companies have leveraged their
online presence as a preferred method of delivery to adapt to this evolved business environment.
Most have signed by with food delivery companies like Swiggy, Zomato, Amazon, Flipkart for
extensive customer reach.

Dipping into the current demand for sauces for home consumption many big restaurants are finding
innovative ways to remain afloat. Big eateries like Fig and Maple, Yuatcha, Nara Thai, Mamagoto
are now delivering DIY (Do it yourself) kits at homes for their popular dishes.

The kit contains pre-made items such as sauces, gravies, and dips, along with cut vegetables, meats,
and instructions.

The signature sauces are complex and difficult to replicate at home. For instance, Fig’s Raw Mango
Thecha and secret spicy sauce are versatile and can be used as dips, as sauces in gravy or replicate
the restaurant’s signature bowls.

15
1.2.2 Competitor Analysis:

Sauces-dipping and cooking as a food segment is seeing a steady spike as people are getting swish
with their culinary experiments to bring home the joys of dining out, as many restaurants, cafes, and
pubs continue to remain shut to curb the spread of coronavirus. According to data from Kantar
Worldpanel, which tracks purchases of over 80,000 Indian households every month, sale of sauces
alone grew by 32 percent in the March to June period.

And it is growing as stay-at-home people are cooking like never before. Crumpets, quiches, pizza,
pasta, soups, noodles, curries – Thai, Sri Lankan, Indian are all being rustled up in the home
kitchen.

Aiding the process is a myriad of sauces available in the Indian market like Aioli, Arrabiata,
Chipotle, Peri Peri, Harissa, Asian Sweet Chilli, Sriracha, Schezwan, Hollandaise just ready to be
added to raise the oomph of any dish or cuisine.

Naturally, top companies in the sauce segment such as Dr Oetker, Del Monte, Cremica Food
Industries, Veeba, Hindustan Unilever Limited (HUL), Nestle, Smith and Jones among others are
witnessing a double-digit growth of over 20 per cent. While ketchup has been the traditional and
most popular table sauce in India for years, demonstrating strong value growth year-on-year, other
sauces like mayonnaise, salsa, sweet onion, etc have been fast catching up. According to industry
experts, thanks to the recent boom in the fast-food industry, changing lifestyle, and the huge
influence of international cuisine on rising economies like India, the demand for sauces in the last
five years has surged manifold.

Amidst the unprecedented Coronavirus outbreak and indefinite lockdown imposed across the world,
the food and beverages industry including condiments and sauces with extended shelf life witnessed
surging demand. But the pandemic struck heavily on the B2B segment. With out-of-home sectors
like hospitality, restaurants, severely compromised during the lockdown, the sauce and condiment
companies lost a chunk of that business. For Instance Veeba, which supplied to chains like
Domino’s, Pizza Hut, Dunkin Donuts, Burger King, KFC, and Starbucks, took a big hit like many
others in this segment. Safpro too suffered losses due to over reliance on the HoReCa sector.

Some of the competitors in this sector for Safpro are as below:

 Veeba: This is a family promoted venture. Started in the year 2011, the company has
reached every corner and nook of the country. With its major foray into retail products,
Veeba has now become a household brand due to major brand campaign and extended range
of over 150 products in Sauces and condiments segment. Veeba also has formidable
presence in the HoReCa segment and Safpro faces stiff competition from Veeba. But Safpro
enjoys the leverage of low channel cost and low delivered prices of the products. Safpro
majorly falls short in proper availability of the products and the range of the products.
16
 Wingreens: This is a start up venture with good cash kitty. Wingreens has established itself
as a different player with innovative retail packaging. The company had a robust sales
strength prior to pandemic. But post pandemic the company reduced its HoReCa footprint
completely. It has more focused on retail segment and has been doing good in this segment.
Due to exit of Wingreens, Safpro got a good vacant market in the HoReCa domain. This has
led to sustainable growth for Safpro.

 Adinath Agro: A family promoted business with foray on mid and low-level market
segments. Adinath has been a big name in the Maharashtra, Goa and Gujarat markets. Its
peculiar aggressive pricing strategy has given a good leverage. But the company has not
been able to make a big mark in Mayonnaise and dressings due to quality issues. This
delayed the company to become a complete product portfolio entity. Safpro enjoys product
quality leverage over Adinath’s products.

17
 Chapter no. 2

Introduction to the Company

2.1 Introduction to the Company:

Safpro Industries is a food condiment manufacturing company. The company started its operations
in 2014 and has been manufacturing top quality Sauces, Ketchup, Mayonnaise and more for exports
and domestic markets.

Safpro Industries' food venture is focused on packaged foods. Safpro deals in canning, bottling and
pouching of various food items. The production facility is based in Pune, India. The company is on
a food mission and plans to introduce packaged foods which will further enhance the nutritional
value and health index.

The company manufactures food not merely for extending the shelf life but for helping extend
consumer life. The company led by engineers thrives on critical thinking in every aspect. Safpro is
for building a sustainable and balanced food ecosystem for processed and fresh food products.

The company’s relations with farmers and the fair-trade practice makes the food value chain
sustainable and beneficial for each member in the chain. They bring quality food products on
consumers platter with clean business practices where the farmers get optimal benefits. Traceability
of the food that comes from Safpro is assured. They commit themselves to healthy nutrition in the
food.

18
2.2 Company Profile:

About Company:

The company started its operations in 2014 and has been manufacturing top quality sauces, ketchup,
mayonnaise and more for exports and domestic markets. It’s an ISO 22000 certified company with
manufacturing facility located in Gujarwadi, Pune. The following tables reflect the profile of the
company.

i Name of the Company Safpro Industries Pvt. Ltd.

ii Corporate Identity Number U01403MH2010PTC211392
iii Registration Date 27th December 2014

Category/Sub-Category of the Company Limited by Shares Indian

iv
Company Non-Government Company

v Whether listed Company No

Safpro Industries Pvt. Ltd.
vi Address of company Off Tushar Ind,
Sr. No. 15/2,
Gujarwadi road, Katraj.
Pune 411046

2.3 Product Profile:

Brand name of the products: Wildberry & Snack Buddy

Logo of the Company:

19
Tagline of the Safpro: GOOD FOOD GOOD MOOD

GST NO: 27AATCS8573N1Z4

SAFPRO INDUSTRIES PRIVATE LIMITED.

2.4 Vision:

 To delight consumers with an unmatched food experience that delivers superior quality,
service and value.
20
2.5 Mission:

We are committed to the health mission through our conventional food products. Still, we
always think on improving our food products in order to pass on maximum nutraceutical
benefits to the customer. We always work on new products which are innovative and
which leads to healthier life.

1. Safpro Industries aims to make condiments manufacturing profitable by-

 Optimal utilization of available resources, as well as reducing overall costs at the
factory level and also throughout the supply chain.
 Effective financial and risk management.
 Mentoring the distributors and sales team for more sale of the products.
 Better access to market.
2. Developing a robust supply chain, this promises traceable, safe, healthy and
affordable products.
3. Building respectable relationships with the employees and all other customers.

2.6 Structure of the company:

O
Chairman

MD Director

CFO

Production Sales Accounts

Manager Manager Manager

21
2.6.1 Board of Directors:

Sr. Name of Person Designation/ Contact details

No.
1 MR. NEELKANTH Chairman & neel@safprofoods.com
SHINDE Managing Director
2 MR. Director & anirudha@safprofoods.com
ANIRUDH Head- Sales &
A Marketing
KSHIRSAG
AR
3 MR. NILESH SHINDE Director & nilesh.shinde@safprofoods.com
Head- Production
4 MRS. JYOTI ADHAV Director& jyoti@safprofoods.com
Head- Finance

2.6.2 Details of Company Employees:

Sr.
Particular No. of Employee
No.
1 Supervisors 3
2 Production Officer 1
3 Purchase Manager 1
4 Chief Finance Officer 1
5 Market Research Manager 1
6 Sales Executives 10
7 Regional Sales Managers 2
8 Area Sales Managers 4
9 Accounts Manager 1
10 Head of the Departments 2
Total No of Staff 26

22
2.6.3 Infrastructure of the company:

Sr. No. Particulars Capacity

1 Processing Area 6000 Sq. Ft
2 Finished good storage area 3000 Sq. Ft
3 Raw material reception area 2500 Sq. Ft
4 Dispatch area
3000 Sq. Ft
Total Area 15000 Sq. Ft

2.7 Certifications:

1. ISO 22000:
ISO 22000 is an internationally recognised standard that combines the ISO9001 approach
to food safety management and HACCP for the assurance of food safety at all levels. The
standard maps out how an organisation can demonstrate its ability to control safety
hazards to ensure that food is safe.

We are an ISO 22000 certified company. This certification has helped us in building a
complete quality management system. Even before the certification, we have complied
with all the norms.

2. FSSAI:
The certificate is necessary for ensuring food safety and regulation.

We are a licensed food manufacturer in India. We are registered with the FDA India. As per
the FSSAI norms we have implemented HACCP protocols in every aspect of company’s
operations. We have a dedicated quality team that is devoted to following the HACCP
guidelines. FSSAI norms are full proof and help the organization in having precautionary
quality norms and measures.

23
2.8 Area of Business and Performance:

To meet the commitment of safe products, the company pursues the following:
 To comply with statutory, regulatory and mutually agreed requirements of the
customer.
 To procure excellent quality raw material and process & pack it in hygienic
conditions with advance technology.
 Efficient utilization of all the resources.
 Controlling the food safety hazards at the supplier level by approving the
Supplier and checking the incoming raw and packaging material before use at
factory.
 Meeting customer expectations of required standards of the product in time and
at a competitive price.
 Effective Internal and External Communication.

Performance:

Capacity (Per shift per Sales (Monthly)

month)
2014-2017: Canned Vegetables 100 Tons
(125 Tons per month)
2018-2019: Sauces, Mayonnaise, 60 Tons
Dips & Dressings
(60 Tons per month)
2020: Sauces, Mayonnaise, Dips, 120 Tons
Dressings & SEASONINGS
(120 Tons per month)
2021: Upgraded Facility 180 Tons
(200 Tons per month)
2021: Retail Products Launched 250 Tons

2022: New Factory Proposed 600 Tons

24
 (New Product Lines)

2.9 Product Categories:

The product mix of SAFPRO INDUSTRIES consist of 28 product lines. Each of these
product lines in turn consists of several sub-lines. The main 6 product lines are Mayonnaise,
Sauces, Spices & Seasonings, Dips & Dressings, Coffee and Chocolate. Different products
are categorized into these 6 product lines. The entire product mix for SAFPRO INDUSTRIES
can be understood with the help of following figures.

A. MAYONNAISE

1. Eggless Mayonnaise:

Our Eggless Mayonnaise comes with the

natural mallow taste. Made from refined
soya oil, it proves as a taste maker for
various fast-food dishes. It can also be used
as a dressing in the main course. Since, it is
made from the best ingredients the texture is
smooth and creamy which in turn also
enhances taste.

Pack Size: 1 Kg Jar & Pouch

25
2. Mint Mayonnaise:

Our Mint Mayo is prepared with

mint leaves, coriander leaves,
sugar, green chillies, extra virgin
olive oil, white pepper powder and
egg.

Pack Size: 1 Kg Pouch

3. Harissa Mayonnaise:

The ingredients of Tunisian

harissa are chillies, peppers and a
lively blend of cumin, coriander,
garlic and caraway.

Pack Size: 1 Kg Pouch

26
B. SAUCES

1. Tomato Ketchup:

Pack Size:

1 Kg

The main ingredients of our

Tomato Ketchup are Tomato
paste, Sugar, Iodised salt,
Acidity regulators, Permitted
Emulsifier & Stabilizer
agents, Modified starch, Red
chilli powder, Spices &
Condiments, Preservatives
and Permitted Class II
Preservatives.

Nutritional Information:

Energy 120 Kcal, Fat 0g,

Carbohydrates 5g, Sugars 26g
& Protein 0g.

Net Contents: 5 Kg

27
2. Pizza Pasta Sauce:

Our Pizza & Pasta sauce

which is enriched with
Natural Herbs serve as a
wonderful combination for
one’s signature Pizza & Pasta
dishes.

Pack Size: 1 Kg Jar & Pouch

3. Schezwan Sauce:

Schezwan Sauce has the best

Indian Chinese taste which
appeals to the taste buds of the
customers. This flavourful
Fiery Hot and Garlic Spicy
Sauce enhances the taste of the
food and is enjoyed by the
consumers.

Pack Size: 1 Kg Jar & Pouch

28
4. Barbeque Sauce:

Our Barbeque sauce is made up

of water, sugar, tomato paste,
liquid glucose, spices and
condiments, edible common salt,
Acidity Regulators, thickening
agents and permitted class II
preservatives and added flavour.

Pack Size: 1 Kg Pouch

5. Mexican Salsa:

Our Mexican Salsa is made up

of water, sugar, tomato crush,
tomato paste, Jalapeno crush,
Fresh capsicum, red chilli
paste, Spices and Condiments,
Edible common salt, Acidity
regulator, Edible herbs,
thickening agents and permitted
class II preservatives.

Pack Size: 1 Kg Pouch

29
C. DIPS & DRESSINGS

1. Chipotle Mayonnaise:

The main ingredients in our

Chipotle Mayonnaise are Refined
Soybean oil, Water, Sugar, Malto
Dextrin powder, Herb, thickening
agents, Acidity regulators,
Preservatives, Anti caking agent,
Antioxidant and Nature Identical
Flavouring Substances.

Pack Size: 1 Kg Pouch

2. Tandoori Mayonnaise:

The main ingredients in our

Tandoori Mayonnaise are
Refined Soybean oil, Water,
Sugar, iodised salt, Spices &
Condiments, Dehydrated garlic,
Herb, Soy sauce powder, Yeast
extract, thickening agents,
Acidity regulators, Preservatives,
Anti caking agent, Antioxidant
and Nature Identical Flavouring
Substances.

Pack Size: 1 Kg Pouch

30
3. Garlic Mayonnaise:

The main ingredients in our

Garlic Mayonnaise are
Refined Soybean oil, Water,
Sugar, Iodised salt,
Dehydrated garlic, Spices &
Condiments, thickening
agents, Acidity regulators,
Preservatives and
Antioxidants.

Pack Size: 1 Kg Pouch

4. Thousand Island:

The ingredients are Refined

Soybean oil, Water, Sugar,
Tomato paste, Jalapeno crush,
Edible common salt,
Thickener, Acidity regulators,
Spices & Condiments,
Antioxidants, Class II
preservatives, Added flavour
and Nature Identical
Flavouring substance.

Pack Size: 1 Kg Pouch

31
5. Cheese Blend:

The ingredients are Refined

Soybean oil, Water, Milk solids,
Sugar, Cheese powder, Onion
powder, Garlic powder, Edible
common salt, Thickener, Acidity
regulators, Antioxidants, Class II
preservatives, Added flavour
(Natural & Nature Identical
Flavouring substance), Milk &
Milk products.

Pack Size: 1 Kg Pouch

6. Cheese Jalapeno:

The ingredients are

Refined Soybean oil,
Water, Milk solids,
Sugar, Cheese powder,
Jalapeno crush,
Gherkins, Edible
common salt, Thickener,
Acidity regulators,
Spices, Antioxidant,
Preservatives and Added
flavours.

Pack Size: 1 Kg Pouch

32
 7. Tomato Ketchup Sachets:

The main ingredients of

our Tomato Ketchup are
Tomato paste, Sugar,
Iodised salt, Acidity
regulators, Permitted
Emulsifier & Stabilizer
agents, Modified starch,
Red chilli powder, Spices
& Condiments,
Preservatives and
Permitted Class II
Preservatives.

Net Contents: 8g

D. CHOCOLATE PRODUCTS

1. Chocolate Syrup:

33
 The main ingredients of the
Chocolate syrup are Sugar, Water,
Liquid glucose, Cocoa solids,
thickening agents, Acidity
regulators, Permitted Natural colour
& Nature identical flavours and
Class II preservatives.

Net Contents: 1.3 Kg

34
E. SPICES & SEASONINGS

1. Pizza Oregano:

The ingredients of our Oregano

seasoning are Dehydrated garlic,
Iodized salt, Oregano, Black
pepper, Basil, Chilli, Soybean oil,
Anticaking agent and Natural
flavoring substances.

Net weight: 0.7 g

2. Chilli Flakes:

Ingredient is Chilli Flakes

Net weight: 0.7 g

35
2.10 Product Mix for Safpro Industries:

Product mix for Safpro

Mayonnaise Tomato Exotic Dips & Seasonings

Ketchup Sauces Dressings

1.Eggless 1.Tomato 1.Pizza Sauce 1.Mayo 1.Chilli flakes

Mayonnaise Ketchup dressing
Classic sachets 2.Barbecue 2.Oregano
Sauce 2.Mayo based mix
2.Premium 2.Tomato dips
Eggless ketchup 1Kg 3.Chocolate 3.Piri Piri
Mayonnaise nozzle Sauce Seasoning

3.Tomato
ketchup in
bulk 5Kg
pack

36
2.11 Details of the main products and services of the
company:
The details of the contribution of different activities like production, processing and
marketing in terms of total turnover of the company are furnished below.

Details of the main Products & Services:

Name and Description of % total turnover of the

Main Products/Services company.
Eggless Mayonnaise 35%
Tomato Ketchup 30%
Exotic sauces 10%
Dips and dressings 20%
Seasonings 5%

37
2.13 SWOT Analysis:
SWOT is an important acronym for individuals and organizations alike in the business
world and it stands for Strengths, Weaknesses, Opportunities and Threats. SWOT
analysis is a useful technique to assess these four attributes which play a crucial role
in an organization.
Strengths and weakness refer to internal factors such as (current processes, human
resources, physical and financial resources etc.) while opportunities and threats focus
on external factors such as (market trends, economic trends, pollical and economic
regulations etc.). Below is the detailed SWOT analysis for Safpro.

STRENGTHS:
 Safpro’s product line is one of its biggest strengths for the HORECA. It is covering
the major requirements in Sauces, Dressings and seasonings domain for the customer.
 The second factor is the quality leverage with strong price proposition.
 Company has brand since 2012 which is now majorly present in South India and
Western India.
 Without advertising the company is branding through its own small unit size products
like Ketchup and other sauces sachets.
 Safpro keeps strong flexibility and ability to reduce time-to-market.
 Product line is defined for HoReCa market needs and caters to a given customer in a
complete manner.
 With the launch of FMCG high moving products, company is mitigating the risk of
Covid lockdowns.

WEAKNESSES:

 Dependency on B2B HoReCa market. Covid lockdowns if bringing food service

market to almost standstill.
 Safpro has numerous concepts for new products but it’s not investing in the research.
 Packaging of the products is weak and need to be improved.

38
  Absence of a formal sales structure leading to order fluctuations.
 Most of its salesmen are burdened with multiple responsibilities.
 No presence in the retail market.
 Company has a weak working capital cycle leading to wastage of production time and
improper shipments.

OPPORTUNITIES:

 Amidst Corona, after down surge there’s increase in disposable income is leading the
sales surge in HoReCa and Retail segments. Company should leverage the situation.
 Safpro can go for strategic collaboration with a big player who is not into the sauces
domain.
 Safpro can launch healthy products.
 A conscious branding campaign will hell the brands to settle down.
 Introducing more localized flavours according to the region in dressings domain.
 Introduction of innovative sales delivery channels.

THREATS:
 Competitors offering promotional schemes with predatory strategies to restrict
fragmented players.
 Less investment in strategic branding can be a major impacting aspect.
 Tough competition in the industry by renowned players as well as mid and small level
players by trading off the Price, Quality and Delivery matrix.
Smart FMCG foray is by many players is leaving less room for players with less cash
reserve.

39
 Chapter 3

Introduction to the Project

3.1 Introduction to the project:
Safpro has a wide range of products. In order to see all the high margin products being sold in
every possible area, sales team needs to implement a good sales pitching while taking orders.
Also, company has introduced some new products in the market with good taste and quality.
So, it is challenging for sales team to convince consumers to buy those products and disrupt
the existing market with same products from competitors. During visits to retailers and
distributors it was observed that they have few problems. One of the retailers mentioned that
the products that we were pitching were already available in modern trade outlets like D-Mart
and Big Bazaar at a discounted price, so it is not viable to keep the products as customers are
most likely to buy these products from there. It took an effort to convince retailers that not all
customers go to those outlets for everyday shopping. Also, most of the customers are likely to
lean towards Veeba products. So, it’s a big challenge to cope up with the price as well as
marketing. It took another effort to convince retailers that we are giving the guarantee of
quality of products; if they received damage products then we will compensate it with
exchange or we will deduct that particular price. It was extremely important to make the most
of these by pushing sales through product sampling activities to increase brand awareness and
gain useful customer insights about the products.

The topic of the project is “New Product Launch and Sales Channel Strategies for Safpro
Industries Private Limited”. The project is focused on the consumer needs and demands. Their
behaviour affects the sale of the product and what necessary steps can company take to
maximize its sales of new launched products. By understanding the customer feedback
through retailers it becomes easy to provide right product at right time to retailers and avoid
unnecessary inventory at distributor warehouses as well as to retailers. The project is also
aimed at understanding how promotional activities like product sampling helps to increase
brand awareness and influence the customers to buy the products. Even though online
purchasing has changed the way customers purchase their FMCG products, tough and feel
stills plays an important role during the purchase. It becomes even more important when a
company is launching a new product or service. This part of marketing which is commonly
known as experimental marketing helps to gain useful customer insights during the initial
stages of product launch so it becomes easy to incorporate changes in the product if
necessary.

By studying the results of this project, the organization can get useful insights about
consumer expectations and preference with respect to taste, flavours and packaging so that
the organization can modify its products according to the needs of the consumer which in
turn boost the sales for the products.

40
 PROJECT DETAILS
3.2 Literature Review:

 “New Product Launch: 10 Proven Strategies”, by Jeanne Yocum and Joan Schneider
(2004) throws light on how marketing professionals will be able to leverage the power
of a successful new product launch with these experience-tested strategies. High-
profile case studies from legendary brands including Procter & Gamble, Kellogg's.
Statistical research and interviews explain key issues at each step of the launch-
planning process such as who should serve on the team and how to time the launch,
presenting a clear, compelling blueprint for product launch success. They have done
investigation of the hurdles that new products face in the twenty-first century
including constantly shifting consumer behaviour, demographics, distribution
channels and media trends. The importance of timing and flexibility in planning and
implementation, the advantages that come with a bigger budget, consumer-focused
spending.

 “Sales and Marketing Channels: How to Build and Manage Distribution Strategy”, by
Julian Dent and Michael White (2018) have discussed about the buying pattern and
amount spent in confectionary products. It was observed that celebrity brand
endorsement doesn’t help to increase the sale in confectionary product market. Also,
the price and taste of product is important consideration for customers. If the desired
product is not available then customers are more likely to switch to other brands of
confectionary products. Along with the traditional 4P’s the 5th P i.e., packaging plays
a huge role in attracting the customer. With increase in online business platforms,
distributors can take help of exclusive online strategies to leverage this opportunity
and maximize the profit for the company.

 “Product Launch 360 Degrees - Requisites of launching a Product across the Globe.”,
by Doctor Ta Srinivasen explains to identify requirements that are essential for the
successful launch of products and/or services by an entrepreneur. These critical
indicative details need to be complied in addition to other requirements in different
geographies. This book will be useful to business school graduates, budding
entrepreneurs, corporates and anyone who want to successfully launch their
products/services.

 “Sales And Distribution Management”, by Tapan Panda and Sunil sahadev tries to
explain Sales & Distribution Management, intended for specializing in marketing,
undertakes detailed discussions to explain and analysis techniques, and strategies used

41
by marketers to deal with the increasing competition. With the rapid changes in
technology, sales and distribution management has become very critical for the
success of any business enterprise. It focuses on Sales Management discussing the
selling process, sales force automation, recruitment & selection of sales force, their
training & compensation and more. Also, on Distribution Management covers ways
of designing customer oriented marketing and logistics channels, channel information
system, application of e-commerce and managing the international channels of
distribution.

42
  Objectives of the Project:
Well- designed project objectives help to describe the desired result of the project. They
should be as specific as possible to make sure they are measurable and achievable. Following
are the project objectives for this Internship Project.

 The primary objective of the project was to assess the market fit for new product launch
of Safpro industries.
 To build the sales channel strategies for Safpro Industries in Katraj area.
 To assess the consumer buying behaviour and their interest for the products of the
company.
 To understand the presence of competitors like Veeba and Wingreens.
 To understand the effective strategy for retail launch of Safpro’s products.

43
 Chapter 4

Research Methodology

4.1 Title of the Study: “New Product Launch and Sales Channel Strategies for Safpro
Industries Private Limited.”

4.2 Research Design:

A research design is the frame work for a study, used as a guide to collect and
analysed data. A research design ensures that, the study will be relevant to the
problem and, it will use economical procedure.

a) The type of research:

Exploratory Research, An exploratory research is conducted to gain ideas and
insights into the problem. It is conducted to increase the marketer’s familiarity
with the problem and clarify concepts. An exploratory research is appropriate
when very little is known about the problem. Here the purpose of the study was to
find out the factors associate with customers/retailers/distributors behaviour and
efficiency of the given sales channels for HoReCa as well as FMCG products;
hence an exploratory design was selected.

b) Sample Design: (Convenience based Sampling)

It is basically a form of convenience sampling in which the population elements
are purposely selected based on convenience approach.

c) Sampling Unit:
The elements available for selection during the sampling process known as
Sample Unit. (a) Retailers & distributors (b) End consumers as sample unit for my
research.

d) Sample Size:
Around 120 distributors, retailers and end customers were surveyed. Out of them
50 were identified where the survey was conducted. These 50 i.e., 20 retailers, 15
distributors and 15 end consumers were surveyed for following aspects:
 Ontime delivery of the products
 Landed pricing of given products
 Customer preferences over competitor’s products
 Customer requirements

44
  Availability of the products

4.3 Location: The research was done in Katraj area in Pune.

4.4 Data Collection Method:

a) Primary Data:

The primary data is collected from the distributors, retailers and end customers of
Safpro Industries.

b) Secondary Data:

The secondary data is collected from sales team and internet.

45
 Chapter 5

Data Analysis and Findings

Following is the detailed analysis done to understand the sales channel’s effectiveness
through the Distributors, Retailers and End consumers experience. A detailed questionnaire
was prepared and responses were collected to understand the same.

There are two different questionnaires one is for Distributors and Retailers collectively and
another is for End consumers.

Questionnaire for Distributors and Retailers (Respondents= 35)

Q.1) Are the goods cheaper than the competitor brands?

Reasons No. Of Responses % of Responses

Yes 28 80
No 7 20

Comparison

20%

80%

Yes No

Interpretation: Safpro enjoys a good leverage w.r.t the pricing. Majority of the customers
feel that the prices are competitive when it comes to catering all types of exotic to basic
market segments. Some customers buy in the market from ungoverned sales channels and get
higher prices for the products.

46
Inference: This data infers that Safpro has been successful in delivering products at
competitive rates.

Q.2) How would you compare our products to our competitors?

Channel type No. Of Responses % Of Responses

Distributors 15 43

Retailers 20 57

Sales

Distributors Retailers

Interpretation: Respondents were surveyed for suitable brand’s products and taste preferred.
Customers also prefer other brand’s products.

Inference: Data shows that still customers prefer other brand’s products.

Q.3) Through which sales mode you receive products on time?

47
 Channel type No. Of Responses % Of Responses
Super stockist 15 43
E commerce 3 9
B2B partner (like 3 9
Udaan)
Direct company 10 29
Unrelated 4 10
distributors

Sales

10%
Super stockist
E commerce
B2B partner
43% Direct Company
29%
Unrelated distributors

9% 9%

Interpretation: Respondents were surveyed for suitable sales and delivery channel for
Safpro’s products. Respondents are still majorly dependent on conventional delivery channel
through company super stockists. 43% customers prefer the conventional sales channel which
signals that customer prefer structured sales and delivery. 29% Customers are seen opting for
purchase from direct company by going for bulk purchase. Company’s products are sold in
open market through ungoverned channels too. 10% of the customers opt for such sales
channel due to various reasons like quantity and price. Customers are still not preferring
modern sales channels like Udaan or Ecommerce market places.

Inference: Data shows that still customers prefer structured and conventional sales channels.

48
Q.4) Do you receive products in good condition?

Response No. Of Responses % of Responses

Yes 28 80
No 3 10
Can be improved? 4 10

Contribution

10%
10%

80%

Yes No May be

Interpretation: Due to micro revision of packaging and logistics, Safpro has been able to
deliver goods in good condition. Barring ungoverned Sales channel, products packaging has
been good and stable over the lifecycle of the products.

Inference: As per the survey majority of customers are satisfied with the stable goods
delivery.

Q.5) Through which sales mode you get better landing price?

49
 Sales channel No. Of Responses % of Responses
Super stockist 17 50
E commerce 2 4
B2B partner (like 1 2
Udaan)
Direct company 12 36
Unrelated 3 8
distributors

Best Landing Price

60

50 50

40
36

30

20

10
8
4
2
0
Super stockist E commerce B2B partner (Udaan) Direct company Unrelated distributors

Interpretation: Customers were surveyed to understand the most price wise lean sales
channel. Customers still prefer the sales channel governed by the company end-to-end.
Customers get best delivered prices through the structured sales channels like conventional
company driven distribution channels. Whereas other third-party channels like Ecommerce
dictate product prices based on their own algorithms.

Inference: Customers prefer the structured way of purchase of Safpro’s products as they get
best prices coupled with sales support.

Q.6) Through which sales channel you see products available when you demand for?

50
 Brand No. Of Responses % of Responses
Super stockist 25 76
E commerce 2 4
B2B partner (like 1 2
Udaan)
Direct company 3 8
Unrelated 4 10
distributors

Product Availability

Unrelated distributors
10%

Direct company
8%

B2B partner (like Udaan)

2%

E commerce
4%

Super stockist
76%

0 10 20 30 40 50 60 70 80

Interpretation: On time availability of the goods is vital for any sales channel. It is seen
from the survey that the Superstockist appointed by the company maintain stock of all goods
with minimum order levels. This ensures smooth flow of the goods all the time.

Inference: The survey confirms the importance of conventional and structured sales channel
even in today’s digital age.

51
Q.7) Which sales channel will you prefer to order the products next time?

Brand No. Of Responses % of Responses

Super stockist 19 56
E commerce 1 4
B2B partner (like 3 7
Udaan)
Direct company 7 20
Unrelated 5 14
distributors

Preferrable Sales Channel

Preferrable Sales Channel
Unrelated distributors 14.00%
Direct company 20.00%
B2B partner (like Udaan) 5.00%
E commerce 5.00%
Super stockist 56.00%
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00%

Interpretation: The direct company sales channel and the ungoverned distributors are
contributing for more than 40% towards the preference for ordering for the next time. This is
due to varied reasons ranging from order quantity restrictions and preference for discounted
pricing by directly ordering from the company.

Inference: As per the study done, customers see ordering from the Superstockist or directly
from the company is preferential.

52
Q.8) Which sales channel partner offered discounts and promotions?

Responses No. of Responses % of Responses

Super stockist 16 44
E commerce 7 20
B2B partner (like 0 0
Udaan)
Direct company 0 0
Unrelated distributors 12 36

Discounts & Promotions

36
44

20

Super stockist E commerce B2B partner (like Udaan)

Direct company Unrelated Distributors

Interpretation: The question surveyed the customers to see the discounts and promotions
offered. The company governed sales channels are offering the same type of promotions and
discounts declared by the company. Around 44% customers see the Super stockist channel
offering good discounts and promotions. But amazingly, 36% of the customers also see the
unrelated distributors offering the discounts. These discounts are not governed by the
company.

Inference: As per the study done, majority of respondents see the Superstockist channel
offering proper discounts and promotions.

53
Questionnaire for End Consumers (Respondents= 15)

Q.1) Do you like the taste of Safpro’s products?

Reasons No. Of Responses % of Responses

Yes 12 80
No 3 20

Taste

Yes No

Interpretation: End customers were surveyed to understand their choice of taste of Safpro’s
products. Customers prefer the products often due to great taste in an affordable price.

Inference: Customers prefer the purchase of Safpro’s products as they get good taste.

54
Q.2) Which features are most valuable to you?

Channel type No. Of Responses % Of Responses

Customers 12 80

Expectations
90

80

70

60

50

40

30

20

10

0
Customers

Interpretation: It is seen from the survey that the people require best taste with healthy
content, also it should be kept for longer period of time (shelf life). Also, they want
innovative products apart from traditional products.

Inference: The survey confirms the requirements of people who surveyed.

55
Q.3) Do you like the quality of Safpro’s products?

Reasons No. Of Responses % of Responses

Yes 13 85
No 2 15

Quality
90

80

70

60

50

40

30

20

10

0
Yes No

Interpretation: End customers were surveyed to understand their choice for quality of
Safpro’s products. Customers prefer the products often due to best quality in an affordable
price as compared to competitor’s brands.

Inference: Customers prefer the purchase of Safpro’s products as they get good quality.

56
Q.4) Would you recommend our products to your family and friends?

Reasons No. Of Responses % of Responses

Yes 12 80
No 3 20

Recommendations

No

Yes

0 10 20 30 40 50 60 70 80 90

Interpretation: End customers were surveyed to understand their opinions if they are likely
to recommend Safpro’s products to their friends and families. 80% customers recommend the
products because they personally like those.

Inference: Customers prefer to recommend the purchase of Safpro’s products to their close
ones.

57
Q.5) How often do you use our products?

Channel type No. Of Responses % Of Responses

Customers 12 80

Frequency
90

80

70

60

50

40

30

20

10

0
Customers

Interpretation: Respondents were surveyed to understand the frequency of usage of Safpro’s

products. Customers prefer the products often due to price affordability, taste, quality and
shelf life, etc.

Inference: Customers prefer the purchase of Safpro’s products as they get best prices
coupled with quality.

58
 Chapter 6

Findings, Conclusions & Recommendations

6.1 Scope of the Study:

The study conducted had the scope of finding efficacy of the sales and delivery channel of a
food company like Safpro. The research gave micro insights into the working of various sales
channels and how those affect the customer preferences. Sales channels also decide on the
sustainability of the business. This research has led to exposure of critical aspects which will
affect the management decisions in the future.

6.2 Findings:
1. Respondents are a mix of distributors, retailers and end consumers.
2. 40% of the distributors and retailers regard the super stockist channel as the best
channel when it comes to timely delivery of the goods. This being due to the stock
buffering in the channel.
3. 80% distributors and retailers have accepted that Safpro’s products are cheaper than
the competitor’s products.
4. Safpro enjoys strong leverage due to delivered prices of the products being best in
class. This helps Safpro to deploy less resources in the selling process.
5. Majority of 80% distributors and retailers are receive goods in good condition
acknowledging the fact that Safpro has been successful in building a logistically good
performing sales channel.
6. The Superstockist and direct company channels gives the best possible prices to the
customers and this has led to a sustainability in the sales for Safpro.
7. 76% distributors and retailers see the Superstockist channel capable on meeting
anytime demand of the customers. Safpro has successfully executed differed
inventory strategy in the sales channel making sure customer gets goods on time.
8. 56% distributors and retailers will prefer the Superstockist and Direct company sales
channel to order the products next time. These two channels have given the customer
best price, quality and delivery matrix.
9. 44% distributors and retailers see the Superstockist channel offering timely
promotions and discounts as they directly come from the company. But the
Ecommerce and Unrelated distributors too offer good discounts for the respective
customers who order in less quantity and believe in just in time sourcing.
10. 80% end consumers like the taste and quality of the products and are likely to
recommend the Safpro products to their close ones so Safpro will leverage the word
of mouth.

59
6.3 Recommendations & Suggestions:
To execute our strategy or plan we required following things as form of our proposal: -

1. Increase in ground sales team needed – Sales team plays important role in sales
channel performance. The channel monitoring, channel efficiency, sales
sustainability and channel discipline are more aligned with a good and active sales
team. Some aspects that affect the channel performance can be narrated as follows:
 Channel sales are governed end to end by the sales team.
 Channel members are controlled and no external interference is allowed.
 Channel data is relayed back to the company using CRM.
 Any eventuality is dealt effectively with regards to issues.
 Market research is a continuous process in such set up.
 Sustainable sales and new business development are done effectively.

2. Supply should be uniform through all channels: - Although all the sales channels
can’t be equated or compared on peer-to-peer basis due to various limitations but
availability of the products over all the sales channels should be ensured. This will
ensure the product availability and will not hamper the brand image. This can be
achieved by deploying sales channel managers for each of the channels.

3. Improve packaging for sustainable sales: - Packaging is one hurdle in incremental

sales. Company has lost good institutional customers due to age old designs.
Company is working on retro type uniform designs in order to convey uniform
message across all segments. This process should be speeded up.

4. Focus on retails products: - Safpro has low footprint in the retail sector. Company
should now actively place the products in retail FMCG channels. This will ensure
brand building and increase the profitability. Company will expand the footprint in a
major manner due to the same.

5. Enhance branding: - Safpro is doing very less branding. The digital branding efforts
are also less. Company should now take the right product mix to the market with
branding efforts. Multichannel targeted marketing is needed with competition being
stiff in the sauces and condiments segment.

60
6.4 Conclusions:
Here are some of the conclusions drawn from the observations over the three months.

1. Safpro is a top player in the HoReCa segment and enjoys good leverage in South
India. Company enjoys the leverage of lean sales channel, product price leverage and
sales channel overlapping (HoReCa and Retail).
2. Safpro being the early entrant in the dressings segment enjoys the leverage. It still has
low penetration in the market. This has to be addressed in a strategic way.
3. Safpro lacks in branding with the budget allocation for branding being miniscule. This
affects the brand consciouness. A dedicated branding strategy for Omnichannel sales
is needed.
4. Safpro has been successful in differed inventory strategy in the sales channel. But
customers who doesn’t subscribe to company governed channels need to be addressed
separately and converted into direct customers through different delivery mechanism.
5. Safpro has numerous products in the pipeline. These products need to be launched in
the respective segments of HoReCa and Retail.
6. Safpro promoters have numerous first to market concepts. These concepts can disrupt
the market in terms of differentiated products offering. Company needs to device out
a timeline for such launch.
7. Safpro is present in 10 states and promoting their HoReCa products. Company needs
to explore whether same channels can be used for General trade retail launch in order
to softly penetrate the market with minimum branding cost. Company should also
focus on secondary ecommerce channels like Udaan. Such initiatives will help
company to reduce on branding costs along with incremental sales on monthly basis.

61
 Chapter 7

Limitations, Learning & Value Additions

7.1 Limitations of Study:

1) Due to telephonic and online research due to conveyance limitations related to

Covid 19, the in-person research was not done.
2) Survey was majorly done through the sales team.
3) Some sales channels like Amazon were not ready to disclose the data.
4) Telephonic conversation with customers was cumbersome due to schedule
mismatch and uncomfortable attitude for sharing data.
5) Lean sales team made each and every sales person overly occupied in their
primary tasks of achieving sales targets.
6) CRM data entry was not upto the mark. It made the task difficult in building
analytics.

7.2 Learning:

The research exercise has been the most practical aspect for learning. This exercise has
strongly embedded the sales structure as a skillset.

The internship duration was very digging out exercise with numerous first to life experiences.
Dealing with challenges in a SME organization is a true entrepreneurial exposure for me.

Mainly I learnt the following:

i. Critical importance of research methodology.

ii. Dealing with cross functional leaders and employees.
iii. Learnt self- leadership through my majorly independent approach and initiatives in
the complete internship tenure.
iv. I got strong exposure in pre and post sales processes.
v. I learned to handle customer’s grievances.
vi. Learnt how to relate the market needs with the research team and production team.

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vii. A strong and updated continuous competitive analysis is integral part of a conscious
organization.
viii. Team dynamics plays vital role in effectiveness of company’s strategies.

7.3 Value additions:

There are some value additions suggested and implemented as follows:

 Studied and implemented full-fledged CRM independently.

 Brought accountability in inventory in the sales channel.
 Worked as virtual sales manager when Pune sales executive absconded. This was a
risk management exercise.
 Designed customer loyalty program and increased customer engagement through
frequent conversation and designing a special promotions program.

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 Bibliography

 http://www.safprofoods.com/

 https://hbswk.hbs.edu/archive/new-product-launch-10-proven-strategies

 https://www.worldcat.org/title/sales-and-marketing-channels-how-to-build-and-manage-
distribution-strategy/oclc/1030033573

 https://www.indoasiancommodities.com/2020/09/16/sauces-and-dips-get-a-boost-as-
indians-cook-more-at-home-during-pandemic-lockdown/

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 Chapter 8

ANNEXURE- Ⅰ

5.1 Questionnaire for Distributors and Retailers :

Q.1) Are the goods cheaper than the competitor brands?

a. Yes
b. No

Q.2) How would you compare our products to our competitors?

a. Good
b. Bad
c. Better
d. Equal
e. Can’t compare

Q.3) Through which sales mode you receive products on time?

a. Super stockist
b. E commerce
c. B2B partner (like Udaan)
d. Direct company
e. Unrelated distributors

Q.4) Do you receive products in good condition?

a. Yes
b. No
c. Can be improved?

Q.5) Through which sales mode you get better landing price?

a. Super stockist
b. E commerce
c. B2B partner (like Udaan)

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 d. Direct company
e. Unrelated distributors

Q.6) Through which sales channel you see products available when you demand for?

a. Super stockist
b. E commerce
c. B2B partner (like Udaan)
d. Direct company
e. Unrelated distributors

Q.7) Which sales channel will you prefer to order the goods next time?

a. Super stockist
b. E commerce
c. B2B partner (like Udaan)
d. Direct company
e. Unrelated distributors

Q.8) Which sales channel partner offered discounts and promotions?

a. Super stockist
b. E commerce
c. B2B partner (like Udaan)
d. Direct company
e. Unrelated distributors

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5.2 Questionnaire for End Consumers:

Q.1) Do you like the taste of Safpro’s products?

a. Yes
b. No

Q.2) Which features are most valuable to you?

a. Quality
b. Taste
c. Price
d. Healthy
e. Better Shelf life

Q.3) Do you like the quality of Safpro’s products?

a. Yes
b. No

Q.4) Would you recommend our products to your family and friends?

a. Yes
b. No

Q.5) How often do you use our products?

a. Daily
a. Monthly
b. Twice in a week
c. Twice in a month
d. Occasionally

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