SUMMER TRAINING PROJECT REPORT

On

SALES ANALYSIS OF BRITANNIA ON HEART BEAT BISCUITS

SUBMITTED FOR THE PARTIAL FULFILLMENT OF THE AWARD
OF

Master of Business Administration (MBA)

DEGREE (SESSION 2011-2013)
SUBMITTED BY ANKIT GUPTA *Roll no.*1103270023 UNDER THE GUIDANCE OF MR.ANUBHAV SRIVASTAVA School of management ABES ENGINEERING COLLEGE GHAZIABAD

AFFILIATED TO MAHAMYA TECHNICAL UNIVERSITY, NOIDA

DECLARATION I, ANKIT GUPTA hereby declare that the work which is being presented in this report entitled SALES ANALYSIS OF BRITANNIA ON HEART BEAT BISCUITS is an authentic record of my own work carried out under the super visor Mr. ANUBHAV SRIVASTAVA.

The matter embodied in this report has not been submitted by me for the award of any other degree. Date: ANKIT GUPTA MBA Department

This is to certify that the above statements made by the candidate are correct to the best of my knowledge. Prof.Rakesh Passi Head of Department Date: Mr. ANUBHAV SRIVASTAVA Designation: Asstt.prof. Department: MBA Date:

ACKNOWLEDGEMENT

I take this opportunity to express my sincere gratitude towards Ms.VANDANA CHAUDHARY (supervisor) Mr. BHUPESH JHABRA (mentor) BRITANNIA INDUSTRIES LTDfor accepting my letter to join SALES department and allowing me to complete my training in . BRITANNIA INDUSTRIES LTD I am extremely thankful to my respectable Prof. RAKESH PASSI (HEAD OF DEPARTMENT), ABES Engineering College, Ghaziabad for allowing me to do summer training so that I could use my theoretical knowledge that I learnt in classroom into practical knowledge. I would like to express my heartfelt gratitude & thank to Mr. ANUBHAV SRIVASTAVA (Asstt. Prof.), ABES Engineering College, Ghaziabad for her proper guidance and support throughout this study. I would like to thank each & every member of BRITANNIA INDUSTRIES LTD family for making me feel comfortable & helping me in every possible manner. I would also like to express my gratitude to every faculty member and all staff of my MBA department to provide me proper guidance from time to time to complete my Summer Training Project.

ANKIT GUPTA
DATE: PLACE: MBA- 3rd SEM

CONTENTS
TOPICS PART-I Chapter- I
1.1 INTRODUCTION 1.2 NEED OF THE STUDY 1.3 SCOPE OF THE STUDY 1.4 OBJECTIVE OF THE STUDY 01 - 22 23 - 24 25 - 26 27 - 28

PAGE NO:

PART-II Chapter II
2.1 2.2 Research Methodology LIMITATION 29 - 30 31

Chapter III
3.1Descriptive work on subtopic of study 32 - 34

Chapter IV
4.1 Data Analysis & Interpretation 35 - 50

Chapter V
5.1 Conclusion & Suggestion. 51 - 55

Chapter VI
6.1 Bibliography 56

PART-I

CHAPTER-I

Chapter-1
1.1 1.2 1.3 1.4 INTRODUCTION NEED OF THE STUDY SCOPE OF THE STUDY OBJECTIVE OF THE STUDY

INTRODUCTION

The story of one of India's favourite brands reads almost like a fairy tale. Once upon a time, in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. 295. The company we all know as Britannia today.

The beginnings might have been humble-the dreams were anything but. By 1910, with the advent of electricity, Britannia mechanised its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a result, during the tragic World War II, the Government reposed its trust in Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces. As time moved on, the biscuit market continued to grow and Britannia grew along with it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indianness of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.

On the operations front, the company was making equally dynamic strides. In 1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate identity - "Eat Healthy, Think Better" - and made its first foray into the dairy products market. In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified the affinity consumers had with 'Brand Britannia'.

Britannia strode into the 21st Century as one of India's biggest brands and the preeminent food brand of the country. It was equally recognised for its innovative approach to products and marketing: the Lagaan Match was voted India's most successful promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became India's most successful product launch. In 2002, Britannia's New Business Division formed a joint venture with Fonterra, the world's second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its vision and accelerating graph, Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World', and The Economic Times pegged Britannia India's 2nd Most Trusted Brand.

Today, more than a century after those tentative first steps, Britannia's fairy tale is not only going strong but blazing new standards, and that miniscule initial investment has grown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders. The company's offerings are spread across the spectrum with products ranging from the healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese. Having succeeded in garnering the trust of almost one-third of India's one billion population and a strong management at the helm means Britannia will continue to dream big on its path of innovation and quality. And millions of consumers will savour the results, happily ever after.

MILESTONES

1892

The Genesis - Britannia established with an investment of Rs. 295 in Kolkata

1910 1921

Advent of electricity sees operations mechanized Imported machinery introduced; Britannia becomes the first company East of the Suez to use gas ovens

1939 - 44

Sales rise exponentially to Rs.16,27,202 in 1939 During 1944 sales ramp up by more than eight times to reach Rs.1.36 crore

1975

Britannia Biscuit Company takes over biscuit distribution from Parry's

1978 1979 1983 1989 1992 1993

Public issue - Indian shareholding crosses 60% Re-christened Britannia Industries Ltd. (BIL) Sales cross Rs.100 crore The Executive Office relocated to Bangalore BIL celebrates its Platinum Jubilee Wadia Group acquires stake in ABIL, UK and becomes an equal partner with Groupe Danone in BIL

1994 1997

Volumes cross 1,00,000 tons of biscuits Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to new mission: 'Make every third Indian a Britannia consumer'

BIL enters the dairy products market "Britannia Khao World Cup Jao" - a major success! Profit up by 37%

1999

2000

Forbes Global Ranking - Britannia among Top 300 small companies

2001

BIL ranked one of India's biggest brands

No.1 food brand of the country Britannia Lagaan Match: India's most successful promotional activity of the year

Maska Chaska: India's most successful FMCG launch BIL launches joint venture with Fonterra, the world's second largest dairy company

2002

Britannia New Zealand Foods Pvt. Ltd. is born Rated as 'One amongst the Top 200 Small Companies of the World' by Forbes Global

Economic Times ranks BIL India's 2nd Most Trusted Brand

Pure Magic -Winner of the Worldstar, Asiastar and Indiastar award for packaging

2003

'Treat Duet'- most successful launch of the year Britannia Khao World Cup Jao rocks the consumer lives yet again

2004

Britannia accorded the status of being a 'Superbrand' Volumes cross 3,00,000 tons of biscuits Good Day adds a new variant - Choconut - in its range Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular chant!

2005

Britannia launched 'Greetings' range of premium assorted gift packs

The new plant in Uttaranchal, commissioned ahead of schedule.

The launch of yet another exciting snacking option Britannia 50-50 Pepper Chakkar

2006

Britannia re-launched NutriChoice Hi-Fibre Digestive biscuits in an international large sized biscuit pack.

Britannia acquires 51% stake in Bangalore-based bakery foods retailer Daily Bread.

2007

Britannia industries formed a joint venture with the Khimji Ramdas Group and acquired a 70 percent beneficial stake in the Dubai-based Strategic Foods International Co. LLC and 65.4% in the Oman-based Al Sallan Food Industries Co. SAOG.

Britannia NutriChoice SugarOut range introduced - 1st of its kind of biscuits to be be launched in India with "No Added Sugar" (Variants - Chocolate Cream, Orange Cream, and Litetime)

2008

Britannia NutriChoice 5 Grain biscuits launched Biscuits with the goodness of 5 health Cereals, and sweetened with Natural honey. Britannia Nutrichoice promised consumers "Bhook Bhagao, Kuch Healthy Khao"

Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day Classic Cookies', Low Fat Dahi and renovated 'MarieGold'.

2009

Britannia Launches ActiMind - A first of its kind milk based health drink for kids, which helps improve mental sharpness. Launch of ActiMind marked Britannia's entry into the beverage segment and has further extended its credo of 'Eat Healthy, Think Better' to 'Drink Healthy, Think Better' as well!!

Britannia NutriChoice Nature Spice Crackers launched - Your favorite Cream Crackers, now made even more exciting with the addition of "Sabut" Ajwain and Jeera

spices.

Britannia takes full control of Daily Bread. Britannia Industries buys out New Zealand's Fonterra from existing dairy joint venture, Britannia New Zealand Foods (BNZF). BNZF became a 100 per cent Britannia subsidiary and was renamed Britannia Dairy Private Limited (BDPL).

Recognizing the changing global trends & health benefits of removing transfats, Britannia is the first Bakery brand in India to remove transfats from its products.

Wadia Group acquired stake holdings from Group Danone and becomes the single largest shareholder in BIL.

2010

50-50 Maska Chaska was re-launched with a new masaaledar twist - a delightful blend of butter and imported flavours along with sprinkling of masala in September 2010.

Tiger enters the Cookies category, with the launch of Krunch Cookies in October. These cookies are not only high on delight but also high on energy and have been created keeping in mind the needs of today's kids, These delightful cookies come in two exciting variants - Fruit & Nut and Chocochips and at an affordable price point of just Rs 5.

Brand NutriChoice, in keeping with its track record of launching differentiated healthy snacks, launched Diabetic Friendly Essentials on 14th November, a day that is world over recognized as World Diabetes Day. The range comprised of 2 variants - Oats Cookies and Ragi Cookies and is available in top Indian cities.

Britannia was presented the Master Brand 2010 Award by CMO Council in November 2010.

Rotary Club of Chennai awarded CSR Award to

Britannia in November, for our work in nutrition.

2011

Always committed to constant innovation, Britannia launched Britannia Healthy Start in Mumbai in January 2011. Specially designed with Indian tastes in mind, Healthy Start is a complete range of ready-to-cook breakfast mixes of Upmas, Pohas, Porridges and Oats that are healthy, delicious, and take just 5 minutes to cook! This is the only product range in its category that combines the natural nutrition of multi-grains, 100% real vegetables, pulses and nuts all in one pack.

Britannia received the Most Respected Company Award 2011 from Businessworld.

Bourbon received the Most Popular Confectionery Product Preferred By Youth (Biscuit) Award.

IMCRBNQA (Indian Merchant Chambers Ramakrishna Bajaj National Quality Award) conferred the Manufacturing Performance Excellence Trophy a National Quality Award for the 2010 cycle, for Britannia Corporate Office (Bangalore), Britannia Industries Ltd. (Rudrapur) and Sunandram Foods Pvt Ltd (Mangaldoi, Guwahati).

Britannia further enhanced its foray into healthy milk based drinks by launching TigerZor Choco Milk & TigerZor Badam Milk in May 2011. These are delicious milk based beverages fortified with 5 active nutrients that help in the overall development of mind and body.

BRITANNIA INDUSTRIES LTD. PROFILE Largest manufacture of biscuits in India product range include breads and cakes .One of the best brand, Britannia is the largest food processing company in Indian food processing industry. Four production units with over 4367 employees. Extensive all India distribution network over 600,000 out lets , making it among the most wide spread in the industry. Exporter of various kinds of products.

HISTORY OF BRITANNIA INDUSTRIES Britannia was incorporated in 1918 as Britannia Biscuits Co Ltd in Calcutta. In 1924, Pea Freon UK acquired a controlling stake, which later passed on to the Associated Biscuits International (ABI) a UK based company. During the 50s and 60s, Britannia expanded operations to Mumbai, Delhi and Chennai. Exports of sea foods started in the 70s. In 1987, Nabisco, a well known European food company, acquired ABI. In 1989, J M Pilli, a Singapore based NRI businessman along with the Grouped DANONE acquired Asian operations of Nabisco, thus acquiring controlling stake in Britannia. Later, Grope DANONE and Nussle Wada took over Pillis holdings. In 1977, the Government reserved the industry for small scale sector, which constrained Britannia's growth. Britannia adopted a strategy of engaging contract packers (CP) in the small scale sector. This led to several inefficiencies at the operating level. In April 97, the Government dereserved the biscuit sector from small scale. Britannia has expanded captive manufacturing facilities and has modernized and upgraded its facilities in the last five years. It has also forayed into the Dairy Business with the launch of Cheese, Butter, Ghee, Dairy whitener and flavored milk products.

Parent Group Britannia's controlling stake is jointly with Grouped DANONE and Nussle Wada. Grouped DANONE is one of the leading players in the world in bakery products business. It acquired interest in Britannia Industries in 1989 and acquired controlling stake in 1993..Nusli Wada group is one of the leading industrial houses in the country, with interests mainly in textiles and petrochemicals

Foods major - Britannia Industries (BIL), is one of the leading producer of biscuits and other bakery products. BIL, has a major advantage of the interest taken by the French collaborator - Grouped DANONE. Grouped DANONE is one of the leading players in bakery products business. The association with Grouped DANONE has been a good technological support to BIL. The company is jointly controlled by Grouped DANONE of France, which is holding 22% stake and Nulls Wada group. Nussle Wada is one of the leading industrial houses in the country. Britannia enjoys a prominent position in the industry. Over the last couple of years, it has trimmed down its wide product portfolio and began to focus on value-added instead of low-margin products. The company divested a range of unrelated business interests in soybean extraction, edible oils, export of cashew nuts and shrimp, granites and software. The company rationalized its products portfolio by reducing the products from 35 to around 25.In October 1999, the company has issued bonus shares in the ratio of 1:2.Britannia is the market leader in the 1.2-million tone Indian biscuits industry with a 60% share. It mainly caters to the premium segment. With the launch of Tiger brand, it has taken a plunge in the low-end category, taking competition head on with Parle which is the leader in this segment. The company has also diversified within dairy and bakery products to enter the butter, cheese and ghee markets. Britannia has built an enviable retail distribution network which services 400,000 retail outlets in 2,200 towns with the help of 2,500 distributors. The company is aggressively expanding its network with a bias towards the rural markets.

Britannia constantly expands its product portfolio to achieve its vision of converting every third Indian into its consumer. In order to appeal to the younger generation, the company added two new products -- Sweet Lassa and Milkman Cold Coffee -- to its existing dairy-based drinks portfolio which includes the `Zip Sip' brand of flavored milk. Recently, in the ethnic food segment, the company introduced a new range of traditional `nankeens' in Mumbai called Britannia Sax. The new range includes seven varieties of traditional nankeens like 'Bikaner kid Bhatia' and 'Rajasthani Alu Bhatia' in a price range of between Rs 5 and Rs 20. In Dec. 2000, Britannia dropped its plans to enter the mineral water segment. The move comes close on the heels of DANONE launching its own mineral water brand, Evian, in India, through a separate wholly-owned subsidiary, DANONE India. Grouped DANONE is globally the second-largest producer of mineral water in the world with brands such as Evian, Volvo, Ferrarelle Bandit, Font Vela and Aquaria among others. The mineral water segment in India is growing at around 50% annually and is dominated by Biller and Bailley.BIL, has acquired the trade mark "KWALITY", the Chef Device and several other trademarks owned by Quality Biscuits of Bangalore for a consideration of Rs 30 core. It has also agreed in principle to acquire 49% equity of Quality Biscuits. The transaction is expected to be completed during the current financial year. The company has agreed to acquire 49% equity of Snack Bisk (P) Ltd. Along with the trademark 'NUTRINE' in respect of Bakery Product etc. and several other trade marks along with copyrights and designs. The transaction is expected to be completed by end 2001.Further, company has also agreed to set up a joint venture company in India with New Zealand Dairy Board/New Zealand Milk (NZ). In the joint venture company it is proposed that NZ and Britannia will hold 49% each of the share capital and the balance 2% will be held by business associates. In March 2002 , the Company entered into a joint venture with the Fonterra Cooperative Group, New Zealand. BIL will be transferring its existing dairy business to the new joint venture. The joint venture will be effective from 27th March 2002 and will be engaged in areas relating to sourcing/manufacturing and distribution of milk and milk products in India.

Plant locations
Britannia's plants are located in the 4 major metro cities - Kolkata, Mumbai, Delhi and Chennai. A large part of products are also outsourced from third party producers. Dairy products are out sourced from three producers - Dynamic Dairy based in Barmaid, Maharashtra, Modern Dairy at Carnal in Haryana) and Thacker Dairy Products at Howrah in West Bengal. PRODUCTION BREAKUP

Period ended No. of months

03/98 12

03/99 12

03/00 12

03/01 12

Production volume (unit) Biscuits (Ton) Bread (Ton) Cake & Rusk (Ton) 49,447.0 5,602.0 2,282.0 53,092.0 2,858.0 62,034.0 2,905.0 59,657.0 2,139.0

BUSINESS

Britannia core businesses constitute of Bakery and Dairy products. Bakery products account for 90% of the revenues and include Biscuits, Bread and Cake & Rusk. Dairy products contribute to 10% of Britannias annual turnover of Rs13.38bn. Biscuits (82.7% of turnover) Revenues from biscuit were Rs11.07bn in FY01. The company sold 214,214 tons of biscuits registering a volume growth of 11% yoyo. Biscuit sales in value terms registered a 13.2% yoyo growth. Britannia has a 40% volume share and 48% value market share in the organized biscuit market. The company presently has an installed capacity of 111,000 tons for biscuits. Production in FY01 was 59657 tons against 62034 tons in FY00. Over 70% of biscuits sold are outsourced by the company . Over the years, Britannia has introduced and developed a full line of brands in all segments of the biscuit market. The company's Tiger range of glucose biscuits have been a runaway success, enabling the company to expand its presence in the largest glucose category of the biscuit market. In salty-sweet segment Parleys Krackjack and Britannias Fifty-Fifty compete very closely. Britannias other major brands include Marie, Thin Arrowroot, Bourbon, Milk-bikes, Nice, Sax, Coconut Crunchiest, Pure Magic, Good Day, Jim-Jam and Checkers. It has also launched biscuits like Vita Marigold, Nutria-Choice etc, under the health positioning. Bread (4.6% of turnover) Britannias bread business has been gradually degrading year after year. Bread sales at Rs420mn accounted for just 4.6% of turnover in FY01, against 5.7% of turnover in FY00. The company sold 42450 tons of bread in FY01, a volume degrowth of 9.4% yoyo Dairy Products (9.8% if turnover)

The company's diversification into dairy business has been fairly successful. Dairy product sales were Rs1.3bn in FY01. The company has relaunched all its dairy products under the Milkman brand name. New flavors like Milkman Cold Coffee and Milkman Lassa have been launched in flavored drinks besides Milkman Chocolate Milk and Milkman Strawberry Milk. Cheese, dairy whitener, butter and ghee are the other products sold under the Milkman brand. Britannia outsources its dairy products from Dynamic Dairy in Maharashtra, Modern Dairy in Haryana and Thacker Dairy Products in West Bengal. During FY01 the company sold 13039 tons of dairy products, a 50% yoyo growth over 8820 tons sold in FY00. Britannia has invested Rs58.3mn in the equity of Dynamic Dairy in FY01..The Dairy business is proposed to be divested into a Joint Venture with the New Zealand Dairy Boards Fonterra Cooperative. Britannia hopes to gain from the R&D support as well as access to the international product portfolio of the JV partner. \Cake & Rusk (2% of turnover) Cake and Rusk sales were Rs271mn (2% of sales) in FY01. Volume growth was 2.6% yoyo with sales of 3082 tons. In value terms, sales grew by 12% yoyo. Exports Britannia has discontinued commodity export of Soya bean. Export of marine products has also declined significantly. The company now mainly exports biscuits and cheese to neighboring countries like Sri Lanka and Africa Wada group profile

With the 116 years at the forefront of industry in diversified in several diversified industries

India, the wade group today is broadly that covers textiles, chemicals,

petrochemicals, plantations foods, electronic, light engineering, health laminates, real estates, education, consultancy.

Consistently the group of companies has become market leader in the field, which they have entered.

Financial Strength.

The group has come to known for its sound and prudent financial track record. Building the strong fundamentals has form the basic growth of each company, making them the pick of Indian bourses. Two of the groups Bombay Dying and Bombay Burma have Declared uninterrupted dividend for over a hundred years, despite several recession in the industry HEALTH Dental Products of India ltd. Medical Microtechonologies ltd. Instruments orthopedist.

CONSULTANCY ARCHITECTURE Ghazi Eastern ltd.

EDUCATION Neville Wada Institute of management studies& research, Pane. Nowrosjee Wada College of arts & science, Pane. Cursor Wada Instate of technology Pane. D.G Rupert College Mumbai. New Law College, Mumbai. Modern Education Societys College of Engineering, Pane. Virtual Education Network.

LITTLE HEARTS It was very recently that Britannia introduced Little Hearts to India. As the name suggests, these biscuits are heart shaped. (Okay Middy...that was an intelligent piece of information!) The first thing that strikes you is of course, the name! It is so different and unusual for a pack of biscuits. Little Hearts- it may bring out the child in you, or in some cases, the romantic in you. Little hearts comes in four different flavors. Choc Classic Orange Sesame

You open the pack and the one thing you cannot miss seeing in these biscuits is the fantastic finishing. It is a superb example of high tech engineering. The upper part looks more tanned and more polished. But the biscuit is not over baked. If we say that the basic mould must be browner, then the rest of the biscuit defies that theory. The swirling lines on the biscuit are very attractive. Next comes the taste. The taste is sweetish, with a tinge of saltiness. The blend is so subtle that you just cannot resist drooling over it. Fantastic stuff!

One packet of these sugar coated biscuits is priced at Rs.10, and contains approximately thirty piece.

Truly, a biscuit with a difference. You will just go gaga over it!

New flavors of little hearts were introduced last years in the month of November. Due to new flavors many new customers join little hearts, which increased the sales. For

effective and better supply Britannia take decision to separate the distributors of little hearts. Distribution of some products of Britannia including little hearts, nice time, real magic was given to new distributors. Right now there are 22 distributors of little hearts in Delhi. Every distributor have at least two salesman. They make their visits according to their beat plans. In every beat they have 45 outlets.

SWOT ANALYSIS Following SWOT analysis is based on the researchers observation of the market while conducting the research and projects data analysis.

STRENGTHS. 1. The major strength of Britannias little hearts is its uniqueness. Little hearts is the only product of its kind. It do not have any close competitor. 2. Introduction of little hearts in four new flavors provides the consumers different tastes that can be consumed at different occasions. 3. Other strength includes its popularity among childrens and peoples of all age group.

WEAKNESS

1. Weakest part of little hearts is its supply. The supply of little hearts is not good retailers report of not getting supply for two to three months. 2. Moreover some of the retailers reports of not getting the schemes with little hearts. 3. Some times the distributors are not able to provide the desired flavors of little hearts.

OPPORTUNITIES

1. In Delhi market areas there is a lot of scope for new retail outlet activation in the retail segment like groceries stores, juice corners etc.

2. In the region of Delhi there are number of shopping centers still under construction and some are to be constructed in future. 3. As little Hearts is the product of impulse purchase category and consumed while people are on picnics. So New places such as p[petrol pumps should be discovered.

THREATS

1. Due to poor supply many retailers are not satisfied with the company and they are shifting to other products. 2. The replacement policy of company is not so good as compared to other companies such as Praia Gold. Which makes the retailers to keep small stock of Britannia.

HIERARCHY OF POSTS AT DELHI PRODUCTION UNIT OF BRITANNIA

GM

HR MANAGER

FINANCE MANAGER

SALES MANAGER

PRODUCTION MANAGER

FACTORY MANAGER

STANDARD MANAGER

AREA SALES MANAGER (ASM)

TERITARY SALES INCHARGE (TSI)

1.2 Need of the study

To enable you to face oncoming challenges, innovation is important as it helps serve your customers better and more efficiently. A sales strategy not only helps in retaining old customers, but also in roping in new ones. Sales analysis

helps you have efficient control over your business. It brings to the surface inefficiencies within the system to enable you to make suitable changes. Sales analysis reports provide you with a correct breakdown of the sales figures, which help in projecting sales figures and cash flow.

Analyze your sales regularly, and you can easily see the direction in which your sales are headed. You can also make a comparative study with respect to your competitors. Regular analysis of your sales helps you establish a regular sales pattern, which you can interpret to help you fix your sales and profit budgets.

Sales analysis shows the direction in which a company's sales are heading.

Sales analysis is the determination of the extent to which a sales force has met its sales objectives within a specified time frame. Sales analysis is one of the important aspects of financial analysis, which in turn is important for any business. Proper monitoring and sales analysis are essential for the success of any business.

1.4

Scope of the study

2. Today's business climate can be very harsh, especially if your company is a startup or small sized organization. Proper management of sales processes is vital to staying competitive and ahead in the race. This is where state of the art sales force automation systems can assist you in upping the business automation as well as raising productivity. 3. Tasks That Can Be Automated When it comes to salesforce automation, various tasks can be automated ranging from order taking to contact management to analysis of sales forecast, inventory management, information sharing and many more. By leveraging the power of a sales force automation system, businesses can raise not just effectiveness but also efficiency of the sales teams. This is achieved because of the acceleration of process turnarounds and streamlining of various activities. With such robust sales database information, sales personnel get access to crucial updated information pertaining to pricing and customer accounts. 4. Optimized Communication Since all information stored within the customer database is accessible centrally, various departments within an organization can access such information seamlessly. Hence, segments pertaining to customer management, sales effectiveness as well as marketing management all are included within the scope of customer relationship management systems. Information searches happen within sub-seconds and there is no wastage of time in getting access to customized, vital information. With such small business crm systems, organizations can have access to holistic management as well as capabilities pertaining to users as well as applications. 5. Changing The Routine One of the highlights as well as unique features about workflow management software is that they alter the routine activities of marketing and sales such as followups with contacts, lead assignment, opportunity reporting etc. With robust and high quality salesforce automation systems, sales activities are managed end to end through electronic means. With access to updated and pertinent information available

in seconds, sales personnel need not waste time and can focus on core tasks like selling. Nowadays, sales force automation solutions are accessible on mobile and hand-held devices as well, meaning that sales personnel can enjoy more portability of such systems. 6. Real Time Information Relay With small business software, sales personnel can directly communicate with their managers in real time. Pertinent information such as order taking or details can be seamlessly transmitted to the manager sitting in his office while the sales personnel is on the go. With real time reporting and business intelligence incorporated into such crm systems, it becomes easier for companies to get access to critical marketing information. Information such as customer preferences, demographics as well as peak shopping times of the year etc. are available at a single click. All reports in customer relationship management software are customizable meaning that you get access to whichever type of information you want.

1.4 Objective of the study

As the project was to identify the reasons for inconsistent sales of little hearts , which includes the study of consumer behavior and retailer survey. The question arises why company need this kind of project. The main harms to the company from inconsistent sales are

1. OVER OR UNDER PRODUCTION. Inconsistent sale leads to over or under production. Over production increases the investment of company in stock due to that company is not able to make optimum use financial sources. Under production is also major problem because the company is not able to satisfy the demand of the consumers. E.g. If a retailer is not able to provide a product for one or more time then the customer do not asks again for it.

2. If the demand is not stable then the company is not able to introduce new plans.

ideas and

3. In short inconsistent sales cause wastage of manpower, technology, raw material, funds, loss of customers etc.

Flow chart of various activities performed in a sequential manner to do the project efficiently.

Prepared a questionnaire for consumer survey and few questions for retailer survey.

Discussion of the Questionnaire with the sales manager.

Collection of the Data and analysis.

Presentation of the results in front of the sales manager.

PART-II

CHAPTER-II

Chapter-II
2-1 2-2 RESEARCH METHODOLOGY LIMITATION OF STUDY

2.1 Research methodology

All the data presented here is collected directly from the consumers & retailers survey. Whole data is primary.

The consumer survey of 150 consumers and 200 retailers is done. For the consumers survey a questionnaire was prepared and data collected from various shopping malls, picnic spots, and houses are visited.

Retailer survey is carried out in whole Delhi. For retailer survey whole Delhi was divided into four parts and data was collected equally from these parts. The retailer survey was based on simple conversation with the retailers about the problems with little hearts.

Number of retailers Place Mote nagger Tikal nagger Razor garden Karta nagger Karol bag Romani sector 8 Romani sector 12 Pretax pure Central market Ashok vicar R.K Purim sector 5, 8 & 12 Lakshmi nagger 15 surveyed 12 5 8 10 9 8 10 7 15 10 15

Prt vicar Lappet nagger Mote bag South Extension Patchy vicar Model town 1 & 2 Shalimar garden Mariana

8 12 10 7 10 12 8 9

2.2Limitation of the study

Findings are based on the views expressed by the consumers. So it may suffer from biased prejudices. Weather conditions were not favorable. Some of the respondents were not co-operative & many seem to be having no interest. The study has not been intended on a very large scale, have the possibility of errors, which cannot be ruled out. Time limitations. Area was specified. It is extremely difficult to persuade retailer to respond to questionnaire.

The retailer knows us as people from Pepsi there by the responses could have
been biased.

I had lack of knowledge about the product of the local market. The company does not provide any financial assistance. The time allowed for the project was very short (4 weeks). It was impossible
to study deeply in that short period.

There was the staying place hearer to local market

CHAPTER-III

CHAPTER-III
Descriptive work on subtopic of the study

3.1 Descriptive work on subtopic of the study

Definition

Sales analysis is the process of comparing your actual sales to previously stated company objectives. It is a measurement process used by organizations to evaluate sales effectiveness and consider improvements.

Identification
Sales analysis is used to analyze various aspects of a company's sales. It can be used to compare sales force performance against quotas, evaluate sales by product type and make determinations for bonuses and incentives.

Trend analysis
Sales analysis is used to analyze various aspects of a company's sales. It can be used to compare sales force performance against quotas, evaluate sales by product type and make determinations for bonuses and incentives.

The project assigned was Sales Analysis on Britannia Heart Biscuit.. To understand the project properly we should know about the marketing research and about the market share i.e. what does exactly it means.

What is marketing research and consumer behavior?

Marketing research is the function that links the consumer, customer, and public to the marketer through information used to identify and define marketing opportunities and problems generate refine and evaluate marketing action, monitor marketing performance and improve understanding of marketing as a process. Marketing research specifies the information required to address these issues, designs the method for collecting information manages and implements the data collection process analysis and communicates the findings and their implication.

American Marketing Association Official definitions of marketing research

Marketing research is the specification, gathering, analyzing and interpretation of information that links the organization with its market environment.

Targeting Marketing
One aspect of a successful sales promotion is identifying the target market. That's why TV commercials advertise products more likely to appeal to consumers are shown during sports, news and action shows, and products more likely to appeal to women are shown during the daytime soap operas. The target market is the end consumer; the group of people who will be most interested in purchasing the product. Sales promotions that target a specific market deliver more effective advertising per dollar.

CONSUMER BEHAVIOUR
Consumer behavior studies how individuals, groups and organizations select, buy, use and dispose of goods, services, ideas, or experiences to satisfy their needs and desires. Consumer behavior can be also defined as the behavior that a consumer exhibits before buying the products; it includes the kind of search that a consumer made about the product. While using the product, includes when where and how the consumer is using the product. and after using the product, includes post sale facilities e.g. service, repairs. Understanding consumers and knowing consumers are never simple. Consumers may state their needs and wants but act otherwise.

Technique of sales analysis

To cut through the marketplace noise, today's sales promotions must be clever, informative and engaging. The object is to get a message across and deliver a call to action that inspires the potential customer to do something: buy this, do that, go there. Successful sales promotions use different mediums to deliver the same message. Depending on budget, a sales promotion campaign might include any combination of web, print, TV, outdoor, door-to-door or telephone advertising.

CHAPTER-IV

CHAPTER-IV
Data analysis and interpretation

4.1 Data analysis and interpretation

A Brand is a name, term, sign, symbol, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors. A brand is essentially a sellers promise to consistently deliver a specific set of features, benefits and services to the buyers. The best brands convey a warranty of quality.

To study the brand awareness for little hearts, 160 people were asked that whether they know about little hearts or not?

Out of 160 people surveyed, 150 were found aware of little hearts. That means 93.75% people were aware of little hearts and only 6.25% were not. From the above analyses we can say that little hearts have good brand awareness.

FREQUENCY OF CONSUMPTION OF LITTLE HEARTS.

The sale of a product is very much influenced by the frequency of consumption of that product. If the frequency of consumption is regular, then the sales increase consistently with addition of new consumers.

To study the kind of consumers for little hearts whether regular or occasional survey of 150 consumers is done and following data is recorded.

Regular consumers Occasional Consumers

45 %

55 %

As the regular consumers of little hearts are only 42.66% and occasional consumers are 57.33% this causes inconsistent sales.

Reasons for higher occasional consumer purchase for little hearts are: -

1. People do not have the habit of consuming biscuits daily.

2. People avoid sweetness because of fear of health problems.

3. People find it expensive so it cannot be consumed regularly.

INFORMATION SOURCE FOR LITTLE HEARTS

In biscuits industry the demand of a product very much depends on advertisement. It is the only source that motivates a consumer to purchase a particular product. So here an attempt is made to find out the most effective media for little hearts.

Out of 150 consumers surveyed TVADVERTISEMENTS 128

BOARDS

RETAILERS

FRIENDS BOTH RETAILERS TV &

BOTH TV & BOARDS

TOTAL

CONSUMERS 150

SURVEYED

TV Plays an important role in promoting little hearts. 85% consumers are motivated through TV advertisements, 4.6% through Boards, 3.3% are through Retailers, 3% through both Retailers and TV ads, and 2.1% through TV & Boards. So from the above analysis we can say that TV & boards are playing important role in promoting little hearts.

RELATION BETWEEN DEMAND FOR LITTLE HEARTS AND CONSUMER AGE.

Every product has a target age group consumers and it is positioned according to that. To study the target age for Little Hearts a question was asked, whether they purchase little hearts for there family or not. If yes then which age group demands more for little hearts.

Out of 150consumers surveyed: -

76% said Yes purchase for family.

24% said do not purchase for family.

PURCHASE FOR FAMILY

120 100 80 60 40 20 0 YES NO

LITTLE HEARTS AS BISCUITS OR SNACKS LIKE CHIPS?

Little Hearts is a product whose packing, size, shape and crunchiness makes it look like chips. When people were asked how they view little hearts as biscuit or chips? the following results were recorded.

Out of 150 consumers surveyed

112 consumers i.e. 56% views little hearts as biscuits & 88 consumers i.e. 44%views little hearts as chips.

KIND OF PURCHASE FOR LITTLE HEARTS

To study the purchase category of little heats whether planned or impulse a question was asked in the questionnaire that , what kind of purchase they make of little hearts?

Following results were recorded.

PLANED PURCHASERS IMPULSIVE PURCHASERS TOTAL

69

81

150

So from the above analysis we can say that little hearts is more in impulse purchase category . as we know products of impulse purchase category needs very heavy advertisement.

CHANGE IN THE CONSUMPTION OF THE LITTLE HEARTS.

When people were asked whether they have recorded any change in their consumption of little hearts by last 3-4 months or not. following results were recorded.

Out of 150 consumers surveyed:-

No Change 93

Increased 38

Decreased 19

100 90 80 70 60 50 40 30 20 10 0 No Change Increased Decreased

So we find that the majority of consumers 62%, has recorded no change consumption of little hearts. Only 25% consumers as per survey have recorded increase and 13% consumers has recorded decrease in the consumption of little hearts.

B.

RETAILERS SURVEY

In biscuit industry, due to Brand clutter there is very tough competition and very less product differentiation. The consumer leaves his decision on the retailer. Now days consumer simply asks the retailer for a sweet or salty biscuit. It is up to the retailer which product he offers, so the retailer is king in biscuit industry.

In retailer survey an attempt is made to study following issues

What motivates a retailer to sell little hearts?

Whether retailer push energy influence the demand of little hearts or not?

Problems faced by the retailers in selling little hearts?

WHAT MOTIVATES A RETAILER TO SELL LITTLE HEARTS.

There are a lot of factors that a retailer seeks from the company to sell a particular product. For little hearts when this question was asked to the retailers, they suggest lot of factors. but the common factors they replied were following.

MARGIN SCHEMES PROPER SUPPLY CREDIT REPLACEMENT

Higher margin is the most important thigh that a retailer seeks from a company. Generally the decision of a retailer to sell a particular product is dominated by the comparison of margin with other products of that kind. The retailers compare little hearts with both biscuits and chips. Because little hearts are hanged with chips so they are close competitor of little hearts.

Second main thigh that motivates a retailer is the schemes with the products. Commonly companies use to provide various retailers schemes to attract them to sell their product. the most common schemes are some gift items, free samples, discounts on bulk purchase. Same is in case of little hearts the retailers often seeks for schemes. little hearts is providing various retailers time to time. Now a days the scheme with little hearts is a free pack of little hearts with purchase of 18 packs.

Proper supply is the thigh that retailers want. In case co little hearts, as little hearts is in the category of impulse purchase, it should be hanged at front and the supply should be regular.

Another important thing that the retailer seeks is the credit facility. The retailers of little hearts have to invest a huge amount in keeping four flavors of little hearts. Small and even big retailers have some time problem in keeping stock of little hearts. As the sales of little hearts are not so good and retailers are not able to sell the stock for a longer period, so they need credit facility.

Replacement of the products with complaints is another factor that a retailer wants from a company. Many times in case of packed food there are complaints of rat biting and brokered in which the retailer cannot be held responsible. It is with little hearts the retailer have problems of air leakage and rat biting and they want replacement.

SURVEY RESULTS FOR MARGIN WITH LITTLE HEARTS

Out of 200 retailers surveyed 163 (81.4%) reported that the margin is good with little hearts and 37(18.6%) reported poor margin.

180 160 140 120 100 80 60 40 20 0 MARGIN IS OK MARGIN IS POOR

NOTE: -

Here we can find that the majority of retailers have reported that the margin is ok or good with little hearts. According to some retailers if the demand is good for a product then its margin do not matters. So company must focus on increasing the demand.

SURVEY RESULTS FOR SUPPLY OF LITTLE HEARTS

Regarding the supply of little hearts the results are not favorable to company. The supply of little hearts is not very good . From retailer survey it is analyzed that, only 124 ( 62.5%) retailers has on time supply and rest 76 ( 38.5%) has very poor supply.

140 120 100 80 60 40 20 0 GOOD SUPPLY POOR SUPPLY

NOTE

The retailers who have recorded poor supply of little hearts, most of them are facing this problem just after the separation of distributors for little hearts from other products of Britannia.

REASONS RESPONSIBLE FOR INCONSISTANT SALES OF LITTLE HEARTS.

1. ADVERTISEMENT DEPENDENT DEMAND. The demand of little hearts depends heavily on advertisement. If the advertisement is regular and frequency is high then the demand is also high.

2. The demand of little hearts was not so good before five to six months. Due to that many retailers stop selling little hearts. This causes instant slump in the demand of little hearts.

3. The third main reason for the slow down in the demand of little hearts would be poor distribution system of little hearts. After the separation of the distribution of little hearts from other products, the supply of little hearts was not proper. The retailers are getting the supply once in one or two months.

4. Introduction of new schemes with other products like murkier, cheats, and other chips also affect the demand of little hearts. The childrens are attracted towards these schemes and switch over to these products.

5. Higher impulsive and occasional purchase is also the reason for the up & downs in the sale of little hearts.

CHAPTER-V

CHAPTER-V
Conclusion & Suggestion

5.1CONCLUSION & SUGGESTION

According to the marketing survey & other study it was found that the Little Hearts product of Britannia is declined in the market due to various reasons :

The high cost of the product result in decrease in sale.

Less quantity provided in packing

Due to which sugar dropping on the product the product was not much common in the health conscious people.

SUGGESTIONS

The suggestions, if adopted then the company may expect no further up and downs in the sales of little hearts and sales will definitely increase with consistency.

1. After the survey of 150 consumers & 200 retailers the conclusion comes out that, there is need to improve the distribution system of little hearts. It is noted that supply is mostly regular at shops with heavy investment and are placed at centre of good residential places, such as Saba Bazaar, Alana bazaar. Many retailers do not have regular supply. The areas such as Tikal Nagar, Model Town, Shakhty Nagar, Shalimar Garden, Astir Nagar has very poor supply. Some of the retailers have reported supply once in one - two months. The suppliers are ignoring small retail shops. So the most important thigh is to improve the supply in both small & large shops.

2. Little hearts is a product mostly liked by the children of 5-18 age group as per survey, So there is need to start some schemes for children to motivate them to purchase little hearts.

e.g. Hadrian chips is giving free fun book with one pack. Ruffles is giving pock man inside the pack. Such schemes forms a habit in children to purchase a product. for example with little hearts following schemes can be started:-

One pack of little hearts free for collecting 15 packs of little hearts. One golden polished locket in the shape of hearts inside the pack.

3. Little Hearts has higher impulse purchase than planed so to increase in the planed purchase the frequency of advertisement should be increased.

4. Attractive hangers or stands should be provided to the retailers so that they can easily put the bars of little hearts out side to increase in sales by increase in impulse purchase.

5. Retailer is the king in the biscuit industry. Retailer push energy also works in promoting the sales of little hearts. So there is need to motivate the retailer through regular retailers schemes. for e.g. Pepsi is giving one bottle free on the purchase of one crate of 500 ml.

M.D.H is giving special discount on the purchase of more than Rs 500.

1.

The quantity in the small pack for Rs 4 is less (20 gm). The pack should be priced

for Rs.5 and the quantity should be increased by10 gm.

2.

Introduction in new sweet & salty flavors.

3.

Due to introduction of new flavors the investment of retailers

In little hearts has increased. Now they have to invest four times in the little hearts. The demand of little hearts is not so good , so they must be given credit period of two weeks

4.

Other suggestion given by the consumers includes: Reduction in the sweetness. Improvement of taste. Addition of cream on little hearts.

5. Number of consumers and retailers survived may be inadequate to represent the whole scenario of Delhi market.

6. Not every retailer & consumer have positive attitude towards the survey, so the information collected may be inaccurate.

7. It is also possible that the respondent may answer according to what they think rather they do.

8. Some of the respondents are unwilling to answer because they feel that such surveys are of no use.

9. The conclusions are drawn on the basis of response given by 200 retailers and 150 consumers. There is possibility of misunderstanding their views.

FINDINGS

Factors responsible for inconsistent sale of little hearts are analyzed under the following heads.

A. Consumer survey (Study of consumer behavior).

CONSUMER BEHAVIOR

Consumer behavior is the behavior that a consumer exhibits before buying a product, while using the product and after using the product. So consumer behavior plays important role in influencing the demand of a product. Consumer behavior is unpredictable it can be predicted if we know the eating habits of the consumers. To study the consumer behavior for little hearts following points are studied

CHAPTER-VI

CHAPTER-VI

BIBLIOGRAPHY

6.1 BIBLIOGRAPHY
BOOKS Philip Kilter, Marketing Management Dr. D. D. Sharma, Marketing Research C. R. Kothari, Research Methodology

INTERNET www.bil.com www.google.co.in

MAGAZINE Companys Journal & Magazine, Year 2004 Companys Catalogues & Annual Report Year 2004.

CHAPTER-VII

ANNEXURE
PERSONAL DETAILES Date : Place : Name Age Profession Address

1. ARE YOU AWARE OF BRITANNIAS LITTLE HEARTS? (a) YES

(b)

NO

2. HAVE YOU TRIED LITTLE HEARTS? (a) YES

(b)

NO

3. (a)

DO YOU CONSUME LITTLE HEARTS REGULARLY? IF NOT WHY? YES

(b)

NO

4.

WHICH FLAVOUR OF LITTLE HEARTS YOU LIKE MOST?

(a) CHOCO

(b) ORANGE

(C) CLASSIC

(d) SESAME

5. HOW DO YOU COME TO KNOW ABOUT LITTLE HEARTS?

(a)

T V ADVERTISEMENT

(b)

BOARDS

(c)

RETAILERS

(d)

FRIENDS

6. ON WHAT OCCASIONS DO YOU LIKE TO CONSUME LITTLE HEARTS?

(a) (b) (c)

___________________________________________________ ___________________________________________________ ___________________________________________________

7. WHAT KIND OF PURCHASE DO YOU MAKE OF LITTLE HEARTS.

(a) PLANNED (b) IMPULSE.

8. HOW DO YOU VIEW LITTLE HEARTS AS?

(a) (b)

BISCUIT SNACK LIKE CHIPS.

9. HOW DO YOU FEELS OF SUBSTITUTING THE CONSUMPTION OF CHIPS WITH LITTLE HEARTS? ___________________________________________________________ ___________________________________________________________ _________________________________________________________.

10. (A) DO YOU PURCHASE LITTLE HEARTS FOR YOUR FAMILY?

(a)

YES

(b)

NO

10. (B) IF YES THEN WHICH AGE GROUP OF YOUR FAMILY DEMANDS MORE FOR LITTLE HEARTS? 5 10 10 18 18 25

(a)

(b)

(c)

(d)

25 ONWARDS

11. DO YOU THINK LITTLE HEARTS DELIVERS BEST VALUE FOR YOUR MONEY?

(a)

YES

(b)

NO

12. DO YOU HAVE RECORDED ANY CHANGE IN YOUR CONSUMPTION OF LITTLE HEARTS BY THE LAST THREE TO FOUR MONTHS?

(a)

NO CHANGE

(b)

INCREASED

(c)

DECREASED

13. WHAT KIND OF COMMENTS, EITHER FAVORABLE OR UN FAVORABLE DO YOU RECEIVE FROM HEARTS? __________________________________________________________ __________________________________________________________ __________________________________________________________. THE RETAILERS WHEN YOU ASK FOR LITTLE

14. YOUR COMMENTS AND RECOMMENDATIONS? _________________________________________________________ ________________________________________________________ QUESTIONNAIRE

1. Yes

Do you eat biscuits? No

2.

Which brand of biscuits do you use?

Britannia Parle Maul Others

3.

Where do you buy biscuits from?

Super stores Retail Stores Restaurants Movie Halls Others

4.

Are you aware of any campaign of the above brands? Yes No

5.

Which biscuits product do you usually prefer or use? Parle Glucose Little Heart

Marie Gold Parle Orange Other

6. Yes

Do you think Britannia biscuits is easily available in market ? No

7.

Describe Britannia biscuits in one word?

________________________________________________

8.

Your comments on little heart biscuits products?

________________________________________________