Professional Documents
Culture Documents
A Study on Consumer Awareness and Beverages Distribution With Reference To Field Fresh Foods Pvt .Ltd Bharti Del Monte, Bangalore
A project submitted to GITAM University, Visakhapatnam in partial fulfillment of the requirements for the Award of the degree of MASTER DEGREE IN BUSINESS ADMINISTRATION By Parimi Nikhil (Roll No: 122511033) Under the guidance of Dr.,
DECLARATION
I, Parimi Nikhil student of Masters of Business Administration (M.B.A.), GITAM Institute of Management, GITAM University hereby declare that the project work initiated on A STUDY ON CONSUMER AWERNESS AND BEVAREGES DISTRIBUTION with reference to FIELD FRESH FOODS Pvt. Ltd BHARTI DELMONTE, BANGALORE is a genuine work done by me in partial fulfillment of the requirement of my M.B.A. This is not been submitted elsewhere for the award of any degree in part or in full.
CERTIFICATE
This is to certify that the project Report titled A STUDY ON CONSUMER AWERNESS AND BEVAREGES DISTRIBUTION with reference to FIELD FRESH FOODS Pvt. Ltd BHARTI DELMONTE, BANGALORE is an original work carried out by Parimi Nikhil, Enrolment No 1225110333, under my guidance and supervision in partial fulfillment for the award of MBA program of GITAM University, Visakhapatnam during the Academic year 20092010. This report is not submitted to any other University or Institution for the award of any Degree/Diploma/Certificate.
Visakhapatnam: Date:
ACKNOWLEDGEMENT
The satiation and euphoric that accompany the successful completion of task, would be incomplete without the mention of the people who made it possible. After all, success is the epitome of hard work, perseverance, zeal, steadfast determination and most of all encouraging guidance. So, with immense gratitude, I acknowledge all those whose guidance and encouragement served as a beacon light and crowned my efforts with success.
I would like to express my profound sense of gratitude to Bharti Del Monte for providing me an opportunity to carry on the desired Project.
I would like to acknowledge my company guide Mr.VINOTH kumar.L Territory Sales Manager, Bharti Del Monte India Pvt. Ltd., for their superior guidance as well as constant encouragement during the conduct this project.
I am also thankful to my faculty member K.KUSMA, for their full support and guidance during the projects.
I sincerely and whole-heartedly thank all my teachers, mentors and friends in GITAM INSTITUTE OF MANAGEMENT who in some way have helped me by imparting valuable knowledge and skills. This project would not have been concluded successfully within time without their support and help.
Bharti Enterprises
Indias leading business group, Bharti Enterprises has interests in telecom, agri-business, insurance & retail. With over 100 million customers, Bhartis flagship unit, Airtel Ltd., is the countrys leading private sector provider of telecommunication services.
Vision:
To be the most trusted and innovative provider of branded fresh fruits & vegetables and processed food products. We need to build a sustainable and scalable business by: Building brands that ride on the Freshness, Wellness & Convenience platforms Focusing on select products and consumer/customer segments which offer higher potential for value-addition Focusing on select markets with a sharper focus on the domestic market Creating high impact on the society at large and our local environment in specific
INDUSTRY PROFILE:The packaged fruit drink industry in India have a history of 24 years, it all started in 1984 with launch of Parle Frooti in tetra pack, but the real surge in packaged fruit drink industry came in 1996 when Dabur captured the imagination of young Indian consumer with the launch of Real Fruit juices-a new concept in the India food market. Since then the industry have been developing gradually and seeing entry of numerous new player with varied flavors and promotions to lure ever growing Indian consumers.
The branded fruit juice market in India is estimated to be worth Rs 1200 crore organized fruit beverage market (nectars, drinks and juices combined).
Beverages are unusual products in which everyone expects to try new varieties, even from established brands. The growth stage also involves price cuts to attract new layer of price sensitive customer.
Major variant of fruit juice available in Indian market are1) Juice is naturally contained in fruit or vegetables. It is prepared by mechanically squeezing or macerating fresh fruits or vegetables. Juice is always 90% fruit juice. 2) Nectar is also made from fruit or vegetables but with a 25-89 % juice content and usually with added sugar. 3) Still drinks contain 0-24 % juice content in fruit, vegetable or other flavors.
Major players in Indian fruit drink market are1) Real juices from Dabur Foods 2) Pepsi's Tropicana 3) Jumpin, Xs from Godrej 4) Frooti, N-joi from Parle Agro 5) Freshgold from Surya Foods & Agro 6) Leh Berry from Ladakh Foods 7) Safal juices from Mother Dairy 8) Delmonte fruit drink from Bharti Del Monte 9) CavinKare Pvt Ltd (Maa Fruits Pvt Ltd. ) 10) Coca Cola India (Minute Maid Pulpy Orange / Maaza )
The Del Monte Pacific (DMPL) Group is a group of companies that caters to todays consumer needs for premium quality, healthy food and beverage products. It innovates, produces, markets and distributes its products worldwide. The DMPL Group owns the Del Monte brand in the Philippines where it enjoys leading market shares for canned pineapple juice and juice drinks, canned pineapple and tropical mixed fruits, tomato sauce, spaghetti sauce and tomato ketchup. The Del Monte Pacific Group also owns another premium brand, S&W, globally except the Americas, Australia and New Zealand. As with Del Monte, S&W originated in the USA in the 1890s as a producer and marketer of premium quality processed fruit and vegetable products. In India, the DMPL Group owns approximately 46% of FieldFresh Foods Private Limited. FieldFresh markets Del Monte-branded processed products in the domestic market and Fieldfresh-branded fresh fruits and vegetables globally and in the domestic market. Del Monte Pacifics partner in Fieldfresh Foods is the well-respected Bharti Enterprises, which owns one of the largest conglomerates in India. Del Monte Pacific holds the exclusive rights to produce and distribute processed food and beverage products under the Del Monte brand in the Indian subcontinent. With its 23,000-hectare pineapple plantation in the Philippines, 700,000-ton processing capacity and a port beside the Cannery, Del Monte Pacific's subsidiary, Del Monte Philippines, operates the worlds largest fully-integrated pineapple operation. It is proud of its long heritage of 85 years of pineapple growing and processing. It has long-term supply agreements with some of the Del Monte trademark owners and licensees around the world. Del Monte Pacific and its subsidiaries are not affiliated with other Del Monte companies in the world, including, Del Monte Foods Co (USA), Fresh Del Monte Produce Inc, Del Monte Canada, Del Monte Asia Pte Ltd and these companies affiliates. To learn more about Del Monte worldwide,. Del Monte Pacific is 78.7%-owned by NutriAsia Pacific Ltd (NPL). NPL is owned by the NutriAsia Group of Companies which is in turn majority-owned by the Campos family of the Philippines. The NutriAsia Group is the market leader in liquid condiments, specialty sauces and cooking oil market in the Philippines.
Our Vision
To be one of the fastest growing global branded food and beverage companies.
Our Mission
To bring to life health and wellness.
We live up to our heritage of growing premium quality food and beverage brands which are the top choice of all generations for enjoyable and healthy living. We leverage deep market knowledge coupled with technology and innovation to create and deliver relevant health and wellness breakthroughs to our broad base of customers. We continuously build on our knowledge and experience in agriculture, while enhancing the sustainability of the lands we cultivate. We adhere to the highest standards of corporate behavior in our relationships with our employees, business partners, and the communities around us. We are a benchmark in corporate social responsibility and the preservation of the environment. We build a highly energized, high-performance organization with a strong commitment to teamwork and to embracing better ways of doing things. We value our people and commit to provide opportunities for learning, professional growth and a better quality of life.
We seize every opportunity to build and enhance relationships with our customers. We aim to contribute to happier and healthier lives for our customers.
We go the extra mile to find the most efficient and effective way of doing things to keep ahead of competition. We pursue our vision and business objectives with focus and tenacity. We are accountable for our actions and are determined and relentless to meet business objectives.
We respect and adhere to company policies and laws of the land in performing our work. We never compromise the name and reputation of the company. We respect and treat people fairly without judging. We take responsibility for mistakes and take corrective action.
We aim to be the best that we can be and help others develop professionally and personally. We encourage openness by communicating clearly and directly; addressing issues, rather than personalities. We respect individuality by working well with others regardless of race, background, and styles. We are concerned about the welfare of co-workers and we are conscious of how our actions and decisions affect others.
Teamwork
We contribute fully in group work, demonstrating trust and mutual support as we collaborate with others. We achieve the company's mission through teamwork, sharing responsibility and recognition with others. We consciously build team relationships with trust and respect.
We implement corporate decisions that promote the greater good in society. We dedicate ourselves and the organization to build better quality of life for others and for the communities where we operate.
a) Mango (202 cans) b) Orange (202cans) c) Pineapple Curesh(202 cans) d) Green apple(202 cans) e) Four seasons(202cans) f) Pineapple-Orange(202cans)
2)Packaged Fruits
a)Pineapple Slices b) Pineapple Slices (easy open cans) c)pineapple Tibits d)Fruit Cocktail e) Fruit Cocktail(easy open cans) f)Prunes
SAUCES
a)Zingo Squeezy b)Twango Squeezy c)Mustard Sauce
3)CORN
4)PASTA
a)Olive Oil (500ml) b) Olive Oil(1lit) c)Green Sliced Olives(450g) d)Green Stuffed(450g) e)Green Pitted Olives(450g) f)Green Plain Olives(450g) g)Black Sliced Olives(450g) h)Black Pitted Olives(450g)
Sales Report
NT-Petta (May)
200 ml cans, 24 units 10 gm sachet (cases), 22 250 gm Ketchup , 4units 10 gm sachet (cases) 250 gm Ketchup 1kg Ketchup 200 ml cans
NT-Petta (June)
10 gm sachet (cases), 12, 50% 10 gm sachet (cases) 250 gm Ketchup 1kg Ketchup 200 ml cans
KP MARKET (May-June)
Four Seasons, 3 Mango Splash, 3
10 gm sachet (Cases), 35
GP STREET (May-June)
10 gm sachet (Cases) May - 20 Cases June - 09 Cases
OT PET CROSS
1kg Ketchup , 36
10 gm sachae (Cases) 1kg Ketchup Cans 240ml (Cases), 30 Cans 240ml (Cases) Olive oil 250 ml Fruit Cocktail
1kg Ketchup , 90
multinationals, and a proliferation of fast food outlets, acceptance o f packaged food products is increasing. Packaging of imported goods is typically better than thatof domestic goods. Also, India has many regional differences in food tastes and preferences.
For example, residents of Mumbai (formerly known as Bombay) are more willing to try newfoods than those in other Indian cities. As Mumbai is home to a more progressive and skilledlabor force than other parts of India, many multinational corporations test market new productsin that city. Consumer spending has grown at an average of more than 11.5% a year for morethan decade as in most developing nations, a large chunk of Indians consumer expenditure is onbasic necessities, especially food-related items. Hence it is not surprising that food ,beverages and tobacco account for as much as 50% of consumption expenditure in 2006.the remaining 50%related to non-food items is expected to rise, due to the growth of percapita income.There are three significant trends in Indian retailing. First, the number of small outlets has grownover the past few years, bucking the worldwide trend toward retail consolidation. Second, Indianretailers have started promoting brands and using basic merchandising techniques. Some of theses t o r e s a r e e v e n c h a r g i n g s l o t t i n g f e e s f o r s h e l f s p a c e . T h i s i s i n s t a r k c o n t r a s t t o t h e s m a l l shopkeepers who paid personal attention to regular customers and strongly influenced their buying decisions. The shopkeepers recommendation wa s important because he often did notdisplay all the items he stocked. Indian consumers who choose branded foods are less likely toseek the shopkeepers recommendation. Lastly, retailers have also started offering home deliveryservices in urban areas.
Indians purchasing power is further fuelled by easy availability finance in the form of loans. The increase in income levels of the Indian population and the emergence of the consuming class that has higher propensity to spend, offers great growth opportunities for companies across various sectors. Growing Consuming class Source- National Council of Applied Economic Research Urban consumers in India have become more exposed to western lifestyles, through overseas travel and presence of foreign media in India. For example, more than 5 million Indians traveled a broad last year and this number is expected to increase by 15 per cent to 20 per cent per annum. Increase in the population of working women and increasing prevalence of nuclear double income families, especially in urban areas, are other trends shaping lifestyles. The food processing sector has been impacted by these trends as there has been an increase in the demand f o r p r o c e s s e d , r e a d y - t o - c o o k a n d r e a d y - t o - e a t f o o d . I t h a s b e e n a s s e s s e d b y E u r o m o n i t o r International, a market research company, that the amount of money Indians spend on meals outside the home has more than doubled in the past decade to about US$ 5 billion a year, and is expected to further double in the next 5 years. These trends imply sig nificant growth potential for the sector in future and add to its investment attractiveness.
Type of packaging preferred in different quantities category The most preferred packaging in different Quantity category is
1. 200-250 ml The most preferred in 200-250ml category is Can pack, so Bharti Del Montes drinks packaging complies with peoples preference. Next preferred is Tetra pack and least preferred is Bottle pack in this category. Since tetra pack is easy to carry and is easy to dispose people prefer it more when product is being used for one time consumption. 2. 300-5000 ml In this category most preferred packaging is Bottle packaging. Since quantity is more and generally consume it in two or three time and carry it back home so bottle is safer option 3. 500ml- 1ltr In this category most preferred packaging is Tetra pack. T h e 1 l i t e r p a c k s t a k e a r o u n d t w o t o t h r e e d a ys i n c o n s u m p t i o n s o c o n s u m e r w a n t a b e t t e r packing where quality can be sustained for long so preference of tetra pack is high. 4. More than 1ltr Most preferred packaging is Bottle pack. This quantity is generally used by hotels and restaurants where consumption is fast so shelf lifes not an issue, the main concerned is safety from spills and other damage related wastage so bottle is preferred more
Brand ambassador- 0.796 Brand ambassador is a person or character who have a distinct image in society, customer associate the brand with it and also try to identify themselves with characteristics of ambassador. If we look at major fruit juice brands like Dabur, Tropicana, etc we find that there are no brand ambassadors, but coming to the drinks which are projected as fun drinks , we find that almost all well placed brands have an ambassador ( slice - Katrina Kaif , Minute Maid Pulpy Orange-Nikhil Chin Napa, Fanta Apple- Genelia D souza etc) and as we have seen in previous analysis that consumer are accepting Bharti Del Monte drink as fun drink so brand ambassador as Promotional Schemes- 0.753 Promotional schemes have role in attracting customers attention at point of purchase and help consumer in making buying decision so it have high loading on it.
Product Feature
1. Small consumption Unit- 0.7919 The attribute small consumption unit reflects that people buy fruit drink for one time consumption. Also smaller SKUs are easy to handle. The trend is exactly opposite when we take into consideration institutional buyers like Hotel, Restaurant and Caterers. During my personal sales call at Hotels and Restaurants I found that these people are more interested in buying higher quantity, as it comes out to be cheaper option, also it is easy to handle while serving in glass and since drinks are served in glass and not in company pack it is easy to price it according to their own convenience. 2. Appearance of packet- 0.622 The appearance of packet displays the personality of product and help product to get noticed between other brand products at point of purchase, hence developing favorability in mind of customer.3. Nutritional Value- 0.759High loading on attribute Nutritional value reflects that Indian consumer has become highly aware and highly nutrition conscious. 3. Nutritional Value- 0.759 High loading on attribute Nutritional value reflects that Indian consumer has become highly aware and highly nutrition conscious.
Competitive Analysis
Dabur with 35% market share and its products around almost every price category is a definite market leader, so Bharti Del Monte has a Herculean task ahead to break brand loyal customers of Dabur and Tropicana. Indian market is very unproductive, it has been seen that major established companies on globe l e v e l w h e n e n t e r s i n t o In d i a n m a r k e t h a v e t o r e t h i n k t h e i r s t r a t e g y . S a m e h a p p e n e d w i t h Tropicana which is world leader in packaged fruit juice had to innovate its product line to beat local players.
Comparison within the major competitors Dabur Real Dabur's flagship brand Real fruit juice is a market leader in the packaged fruit juice category. Real with a market share of 35 % offers to its consumers the largest range of 9 juices that comprise orange, mango, pineapple, mixed fruit, grape, guava, tomato, litchi and cranberry. Real Active orange carrot juice, India's first packaged fruit + vegetable juice.
Real offers traditional 'cooling' recipes in a ready-to-drink format i.e. Aam panna, pomegranate and watermelon. Spread over 11 acres and geared to process 150 tones of fruit per day, it has the capacity to produce 192 tones of pulp/concentrate.
Pepsi cos Tropicana Tropicana is a product of vast PEPSI family. Pepsi's Tropicana brand fruit juice has outpaced the growth of the packaged fruitjuices market in India. The company sources orange juice concentrates from Brazil. They come in Tetrapaks of one litre and PET bottles of 500 ml and one litre. Pepsi also markets Gatorade an energy drink for the sports personnel which is a sugarfree Diet Pepsi. Pepsi, in association with HLL have launched Lipton iced tea.
Parle Agros Frooti Frooti from Parle Agro is the largest distributed fruit drink with 85 % market share in India. It reaches more than 10 lakh retail outlets in up to class C towns The company's another revenue earning brand includes Bailey water. Coca Colas Maaza Maaza was acquired by Coca Cola India. Over the years, Maaza has become synonymous with mango. The drink became a hit with successful advertisement campaigns like "Taaza mango, maaza mango,' and 'Botal mein aam, maaza hain naam. It is available in 200 ml, 250 ml, 125 ml Tetrapak and 200 ml Tetrapak.
It is evident in analysis that factor mental makeup have a very high influence on consumption of fruit drink, it have attributes Trendiness and reflects my attitude which are highest loaded of all attributes. While designing its communication program Bharti DelMonte should highlight this feature. The advertisement campaign should be something like Mountains dew sDarr ke baaad jeet hai where they project that mountain dew drinker have different attitude than other cold drink drinkers. Campaign tagline may be something like Young India, Younger drink.
SWOT Analysis of company Internal Factors Strengths Del Monte has a history of 120 yrs and it is among the most reputed brand internationally. Bharti and Del Monte has strong financial position , investment not a big problem. Del Monte products scores very high on quality Backward Integration- Del Monte grows its raw material, so raw material availability is even an at cheaper rates. Del Monte products are preserved only in natural preservatives. Long shelf life i,e 18 months- 24 months make it more favorable with retailers and other vendors. Weaknesses
Raw materials are fruits which are seasonal in nature so scarcity of raw material can be faced. Distribution Channel- Since company is new and sales is low, so distributors are apprehensive about delivering such small quantity individually, therefore deliveries are delayed. Import- Products are being imported from Philippines, so import duty and transportation cost increases overall price of products. Late entrant- Bharti Del Monte has entered into market in which around 10 players are already operating with few big and established brands , like Dabur, Tropicana etc.
External FactorsOpportunities Growing industry- Packaged Fruit juice industry in India growing at 30% and market is ever expanding there is lot of potential in market to be tapped. Competitive advantage over carbonated drink- With pesticide incident the consumer preference has shifted towards fruit drink. Wellness awareness among consumers- Today Indian consumer is very health conscious and dont mind spending extra money for a healthy product Commonwealth games 2010 will attract lot of foreign tourist in India, these people already know Del Monte brand so their presence towards same will be high.
Threats Cut throat competition Global Warming- In future due to global warming the fertility of soil is expected to deteriorate, which can cause scarcity of raw material. Unstable government policies.