A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED Contents: I.

EXECUTIVE SUMMARY ............................................................ ....................................................... 1 II. INTRODUCTION: .... ................................................................................ ......................................... 2 III.OBJECTIVES AND SCOPE: .......... ................................................................................ ................... 4 IV. THEORETICAL PERSPECTIVE:.............................. ....................................................................... 5 4.2 In dias FMCG sector ................................................................ ...................................................... 5 4.3 SWOT Analysis of FM CG sector in India ............................................................. ......................... 5 Strengths: ......................................... ................................................................................ ................ 5 Weaknesses: ................................................. ................................................................................ ... 5 Opportunities: ........................................................... ....................................................................... 6 Threat s: ............................................................................. ............................................................... 6 4.4 FMCG secto r Growth Prospect in India...................................................... .................................... 6 Governmental Policy...................... ................................................................................ .................. 6 Central & State Initiatives ............................... ................................................................................ . 6 Foreign Direct Investment (FDI) ............................................ .......................................................... 6 Large Market ...... ................................................................................ ............................................. 6 Changing Profile and Mind Set of Consumer ...................................................................... ............. 7 Growth of Organized Retail ..................................... ........................................................................ 7 4.5 P ackaged Food Sector in India ................................................... .................................................... 7 4.6 Packaged food mostly focused on Nutritional and Health Benefits ..................................... ............ 8 V. METHODOLOGY: ................................................. ........................................................................... 9 VI . PROCEDURE OF WORK:............................................................ .................................................. 10 VII.ANALYSIS OF DATA: .... ................................................................................ .............................. 11 7.1 Analysis of data about complete study on d istribution channel................................................. 11 Distribu tion process - ................................................................. .................................................... 11 Problems and expectation s of stakeholders of the distribution channel- ................................. ......... 11 Suggestions for company to improve sales .......................... ........................................................ 12 7.2 Analysis of data about Competitive analysis: ................................................... ............................ 12 7.3 Analysis of data about less selling of some products: ................................................................... 13 7.4 Analysis of data about consumer preference level of Haldirams Prabhuji: .... ............................... 13 VIII. FINDINGS&INFERENCES: .................. ................................................................................ ...... 14 8.1 Findings from objective I ........................................ ..................................................................... 14 8.2 Fin dings from objective II ........................................................ .................................................... 14 Porters Competitive Force s Model: .......................................................................

........................ 14 8.3 Findings from objective III .................... ................................................................................ ....... 15 8.4 Findings from objective IV ...................................... .................................................................... 15 IX. RECO MMENDATIONS: ................................................................... ............................................. 16 X. LIMITATIONS: ............... ................................................................................ ................................ 17 XI. CONCLUSIONS: ........................... ................................................................................ ................. 18 XII. REFERENCES:........................................... ................................................................................ ... 19 XIII. Annexure .......................................................... ............................................................................ 20 Questionnaires: ................................................................ .................................................................. 23 HOUSE OF Q UALITY ......................................................................... ............................................ 31 Contents Page i

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED Table of figures: Figure 2: Satisfaction level of distributors----------------------------------------------------------------------- 11 Figure 10: Satisfaction level of retaile rs -------------------------------------------------------------------------- 12 Figure 14: Comparative discussion with the biggest competitor swissyum --------------------------------- 12 Figure 20: Liking level of consumers about Haldira ms Prabhuji product ----------------------------------- 13 Figure 1: Haldiram s P rabhuji product range -------------------------------------------------------------------- 20 Figure 3: Frequency of getting damage product according to distri butors ------------------------------------ 21 Figure 4: Sales increase due to d amage product replacement according to distributors -------------------- 21 Figu re 5: Satisfaction about company s sales persons according to distributors ---------------------------- 21 Figure 6: Getting information about schemes accordin g to distributors -------------------------------------- 21 Figure 7: Satisfacti on about company s ISRs according to distributors -------------------------------------- 21 Figure 8: Distributor s visit in retail in a week ------------------------------------------------------------------ 21 Figure 9: Distributorship of other companies of distributors -------------------------------------------------- 21 Figure 11: Frequency of getting damage product according to retailers -------------------------------------- 21 Figure 12: Satisfaction about company s sales persons according to retailers -------------------------------- 22 Figur e 13: Sales increase due to advertisement according to retailers --------------------------------------- 22 Figure 15: Availability of products in market accor ding to consumers --------------------------------------- 22 Figure 16:Preferenc e of gift item according to consumers ---------------------------------------------------- 22 Figure 17:Awareness about products of Haldirams Bhujiawala other t han Bhujia,Mixture and sweet according to consumers -------------------------------------------------------------------------------------------------------- 22 Figure 18: Prefernce level of Bhujia and Mixture products according to consumer s------------------------ 22 Figure 19: Prefernce level of sweet products accord ing to consumers ---------------------------------------- 22 Figure 20: Liking l evel of consumers about Haldirams Prabhuji product ---------------------------------- 23 Figure 21:Getting damage product frequency according to Franchisee owne rs ------------------------------ 23 Figure 22: Satisfaction according to Franch isee owners -------------------------------------------------------- 23 Figure 2 3:Satisfaction about companys sales persons--------------------------------------------------------- 23 Figure 24: Sales increase due to damage product replacem ent scheme according to Wholesalers -------- 23 Figure 25: Frequency of getting damage products according to Wholesalers -------------------------------- 23 Table of figures Page ii

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED I.EXECUTIVE SUMMARY This summer project report with the title of A COMPLETE STUDY ON DISTRIBUTION PIP ELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIM ITED I have tried to enlighten the problems, expectations and suggestions of stak eholders of the distribution channel. Part of this project was dedicated to unde rstanding the consumer behavior towards the products of this company. I have don e competitive analysis of the company based on product pricing, product availabi lity, product varity & quality, Customers awareness. Under this project I have al so tried to find out the reasons behind less selling of some products of this co mpany. This market research was conducted in five districts of WestBengal throug h questionnaire. In this project I found out that the distributors of this compa ny is overall more or less satisfied about the company. But franchisee owners ar e not so satisfied about the company. Because retailers are selling same product s in market. So consumers are not so interested about the franchisee. Retailers are getting too much profit by selling Haldirams Prabhuji products. But the commo n problem is that stakeholders of the distribution channel are not getting produ cts all time from the company. In occasion time products are not available in co mpany. Different less selling products have different problems like taste proble m, quality problem, high price problem and awareness problem. Maximum consumers preferred Haldirams Prabhuji product very much. Consumers too much preferred snac ks products of Haldirams Prabhuji. But in the case of sweets they are not much pr eferred Haldirams Prabhuji. Consumers are not aware about less popular products. Haldirams Prabhuji is the market leader in the branded snacks segment in the Kolk ata area. In the snacks segment the others branded competitors of Haldirams Prabh uji are MPS, Swissyum, Parle Agro, Kitkat, Colis.Swissyum is the closest competi tor of Hadrians Prabhuji. In the case of product pricing and product verity (loca l market target) swissyum is better than Haldirams Prabhuji in current scenario.I n the sweet segment local sweet shops are the main competitors.In the case of pa ckaged branded sweets Haldirams Prabhuji is the market leader. The project report concludes with some important strategies and recommendations to the company lik e unique products for franchisee, giving target to the ISRs (Internal Sales Repr esentative) to find out new counters, re-launch of Potato chips, strict area spe cification for distributors, damage replacement scheme for less selling products , launching children targeted product, proper demand estimation, schemes for ret ailers. Overall the project will serve the company in terms of developing distri bution pipe line, improve consumer satisfaction level, increaseing sales of the less selling products and understanding competitors strategy. Executive summary Page 1

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED II. INTRODUCTION: 1.1 Purpose In this project report I have tried to enlighten the problems, expectations and suggestions of stakeholders of the distribution channel. Part of this project wa s dedicated to understanding the consumer behavior towards the products of this company. I have done competitive analysis of the company based on Product pricin g, Product availability, Product Varity & quality, Customers awareness. Under thi s project I have also tried to find out the reasons behind less selling of some products of this company. This market research I have conducted in five district s of WestBengal.I think this project report is beneficial from the organizationa l point of view. 1.2 Profile of the Company Haldirams Prabhuji has been rightly termed as Taste of Tradition. Known for its u nbeatable taste in sweets and snacks segment, Haldirams Prabhuji is a household n ame now. It was in year 1937 in Bikaner, when Ganga Bishen started selling Bhuji a sev in Bikaner and it became so popular within city that even tourist coming t o the city prefer to buy it. Then in 1941, the name Haldiram s Bhujiawala was used for the first time. Then after they expanded business in Kolkata followed b y another unit in Nagpur, and in 1983 first retail outlet was opened in Delhi. H aldirams Prabhuji has grown both in domestic and international market. According to different sources today Haldirams Prabhuji is known for matchless quality, pac kaging, efficient supply chain management, distribution network and zero impurit y. Company uses best technology for its all manufacturing units and special atte ntion is given to packaging due to which shelf life of snacks has been increased to six months. The Aggarwals family that owned Haldirams Prabhuji always paid at tention to need of customers in order to expand. For this the company offers wid e range of variety catering to needs of different age group. Haldirams Prabhuji p roduct range from snacks, sweets, sharbat, dairy product, ice cream,dairy and ba kery products. But their highest contribution comes from snacks. Haldirams Prabhu ji has well managed distribution network, which has its reach for its products i n country as well as other parts of world. Carrying forward agents (CFA) of comp any collect goods from manufacturing unit who pass them to distributors, who in turn send them to retail outlets. Haldirams Prabhuji has entered into e-retailing also, they have tied up with indiatimes to sell their products. This clearly sh ows that the company that has its roots in traditional India is innovating with time and this is what a successful company does. Innovation and marketing is a k ey to success for Haldirams Prabhujis. Few of the examples of innovation strategi es adopted by Haldirams Prabhujis is the use of mineral water in the preparation o f pani puri and chat papri to attract customers who are very conscious about the hygiene. Introduction Page 2

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED The company plans to diversify its existing business. They already invested into hotels and retail real estate business. The company plans to increase its expor ts which are now 20% of its sales. Haldirams Prabhuji already acquired 10 acres n ear singur on the Durgapur Expressway where they will set up a large manufacturi ng facility. The project cost is around 1billion.This project has three phases. First phase-Setting up of a factory to manufacture Indian snacks, which will be 3-4 times bigger than the present one. Second phase-Setting up a factory to manu facture frozen curries, rotis and others ready-to-eat products. Third phase-Sett ing up a manufacturing unit to produce western confectionery items like cakes, p astries etc. First phase of the project is already completed. The other phases a re under constructions. Haldirams Prabhujis has very well understood the intensity of competition in this highly diversified market so they have tied up with Prof ile Advertising, which designs attractive posters, brochures to facilitate the b rand. Visual merchandising of showroom and retail outlet is enhanced by displayi ng products on special racks. Through these strategies, Haldirams Prabhuji is pos ing a tough fight to its competitors which include not only Agarwals, Nathus and Bikanerwala, and but also to Pizza chains like Pizza hut, Mc Donalds. Introduction Page 3

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED III.OBJECTIVES AND SCOPE: Objectives3.1 Complete study on distribution channel: Understand the distribution process Find out the problems and expectations of st akeholders of the distribution channel Collect suggestions for company to improv e sales 3.2 Competitive analysis: ng Product availability isement Find out the competitors position based on Product prici Product Varity and quality Customers awareness or advert

3.3 Study about less selling of some products: Find out the reasons behind less selling of some products

3.4 Find out consumer behavior towards Hadriams Prabhuji product: Preference level of Hadriams Prabhuji in the case of sweet products Preference l vel of Hadriams Prabhuji in the case of snacks products Preference level of Hadri ams Prabhujis gift pack Availability level of the Hadriams Prabhuji products in the market Awareness level about less popular products of Hadriams Prabhuji Reaching level of the advertisement to the consumer Study Scope The project was carried out within Kolkata, Howrah, Hoogly , North24 Porganas and South 24 Porgonas region of West Bengal. The period for the project was 2 months, starting from 2nd of May up to 30th of June 2011. Objectives & Scope Page 4

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED IV. THEORETICAL PERSPECTIVE: 4.1 Overview of FMCG sector Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased c onsumer products such as toiletries, soap, cosmetics, tooth cleaning products, s having products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include phar maceuticals, consumer electronics, packaged food products, soft drinks, tissue p aper, and chocolate bars. 4.2 Indias FMCG sector India s FMCG sector is the fourth largest sector in the economy and creates employ ment for more than three million people in downstream activities. Its principal constituents are Household Care, Personal Care and Food & Beverages. The total F MCG market is in excess of Rs. 85,000 Crores. It is currently growing at double digit growth rate and is expected to maintain a high growth rate. FMCG Industry is characterized by a well established distribution network, low penetration lev els, low operating cost, lower per capita consumption and intense competition be tween the organized and unorganized segments. The Rs 85,000-crore Indian FMCG in dustry is expected to register a healthy growth in the third quarter of 2008-09 despite the economic downturn.The industry is expected to register a 15% growth in Q3 2008-09 as compared to the corresponding period last year. Unlike other se ctors, the FMCG industry did not slow down since Q2 2008. the industry is doing pretty well, bucking the trend. As it is meeting the every-day demands of consum ers, it will continue to grow. Single product leaders such as Colgate Palmolive India Ltd and Britannia Industries Ltd have also witnessed strength in their res pective categories, aided by innovations and strong distribution. 4.3 SWOT Analysis of FMCG sector in India Strengths: Low operational costs Established distribution networks in both urban and rural areas Well-known brands in FMCG sector Weaknesses: Less scope of investing in technology and achieving economies of scale, especial ly in small sectors Low exports levels Some "Me-too products, which illegally mimi c the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market. Theoretical perspective Page 5

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED Opportunities: Undiscovered rural market Rising income level of the Indian people, i.e. increas e in purchasing power of consumers Large domestic market, a population of over o ne billion. Export potential High consumer goods spending Threats: Removal of import restrictions resulting in replacing of domestic brands Slowdow n in rural demand Tax and regulatory structure 4.4 FMCG sector Growth Prospect in India Governmental Policy Indian Government has enacted policies aimed at attaining international competit iveness through lifting of the quantitative restrictions, reducing excise duties , automatic foreign in-vestment and food laws resulting in an environment that f osters growth. 100 % export oriented units can be set up by government approval and use of foreign brand names is now freely permitted. Central & State Initiatives Recently Government has announced a cut of 4 per cent in excise duty to fight wi th the slowdown of the Economy. This announcement has a positive impact on the i ndustry. Foreign Direct Investment (FDI) Automatic investment approval (including foreign technology agreements within sp ecified norms), up to 100 per cent foreign equity or 100 per cent for NRI and Ov erseas Corporate Bodies (OCBs) investment, is allowed for most of the food proce ssing sector except malted food, alcoholic beverages and those reserved for smal l scale industries (SSI). There is a continuous growth in net FDI Inflow. There is an increase of about 150 per cent in Net Inflow for Vegetable Oils & Vanaspat i for the year 2008. Large Market India has a population of more than 1.150 Billions which is just behind China.Ac cording to the estimates , by 2030 India population will be around 1.450 Billion and will surpass China to become the World largest in terms of population. FMCG Industry which is directly related to the population is expected to maintain a robust growth rate. Spending Pattern An increase is spending pattern has been witnessed in Indian FMCG market. There is an upward trend in urban as well as rural market and also an increase in spen ding in organized retail sector. An increase Theoretical perspective Page 6

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED in disposable income, of household mainly because of in-crease in nuclear family where both the husband and wife are earning, has leads to growth rate in FMCG g oods. Changing Profile and Mind Set of Consumer There is a change in the mind set of the Consumer and now looking at Money for Va lue rather than Value for Money. We have seen willingness in consumers to move to e volved products/ brands, because of changing lifestyles, rising disposable incom e etc. Consumers are switching from economy to premium product even we have witn essed a sharp increase in the sales of packaged water and water purifier. Findin gs according to a recent survey by A. C. Nielsen shows about 71 percent of India n take notice of packaged goods labels containing nutritional information compare d to two years ago which was only 59 per cent. Growth of Organized Retail Retailing saw strong growth in India benefiting from strong GDP growth and the e mergence of a large consumer base-the urban, young middle class. Supermarkets no tably saw strong growth, with sales rising by 108 per cent in 2008 alone. Superm arkets/hypermarkets gained share across packaged food during the review period, thanks to expansion in the number of outlets. This channel more than doubled its share from 5 per cent in 2003 to 11 per cent in 2008. In the year 2008, supermar kets/hypermarkets also accounted for a dominant share in canned/preserved food a nd frozen processed food, at 68 per cent and 79 per cent respectively. The chann els most significant growth was seen in impulse and indulgence products such as s weet and savoury snacks and ice cream and dairy beverages. 4.5 Packaged Food Sector in India Packaged food products have been slow in penetrating the large potential present ed by Indias 300 million strong middle classes. But due to growing urbanization a nd changing food habits, the demand has been rising at a good pace and there is enough latent market potential waiting to be exploited through developmental efforts. Rapid lifestyle transform ation, particularly in urban areas, has resulted in a dramatic increase in the d emand for processed, packaged and ready-to-eat food products. The size of the pa ckaged food market in India is estimated to be US$ 10 million and is expected to reach US$ 20 million by the year 2014. Packaged food, which is now 4 per cent o f the overall F&G market, is expected to reach 5 per cent of F&G market by 2014. The main categories of packaged food include baby food, bakery products, canned / dried processed food, confectionery, dairy products, frozen processed food, ic e cream, meal replacement products, noodles, nutrition/staples, pasta, ready mea ls, sauces, dressings and condiments, snack bars, soup, spreads, sweet and savou ry snacks, etc. Theoretical perspective Page 7

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED 4.6 Packaged food mostly focused on Nutritional and Health Benefits There has been a growing focus on health conditions, with most consumers having at least a rudimentary awareness of cancer, diabetes and heart disease. The bulk of new product development is expected to focus on nutritionally enhanced and f ortified/functional products, with these areas having proved successful. Increas ingly, the two concepts will be combined, with low-fat impulse and indulgence pr oducts more and more likely to offer fortification. Players meanwhile launched n umerous products with a health and wellness positioning. Nestl India, for example , re-launched Maggi Two Minute Noodles fortified with 20 percent of the RDA of c alcium and protein in 2008. Gujarat Co-operative Milk Marketing Federation Ltd. Launched Amul Sugar Free Probiotic Frozen Dessert and Amul Prolife Probiotic Wel lness Ice Cream in 2007, thus creating a new niche of probiotic ice cream. Playe rs will also seek to become first-movers in the niches of health and wellness pa ckaged foods. Organic products are thus likely to see strong development, genera lly targeting affluent urban consumers. Naturally healthy products could also se e a growing emphasis on their health benefits, with basmati rice, for example, h aving its low glycaemic index emphasized on the packaging. 4.7 Key Players in the Packaged Food Segment Player Segment Products Hindustan Unilever Limited(HUL) Beverages, Staples, Dairy, Snack Foods Tea, instant coffee, biscuits, ice creams, salt, wheat flour (atta),instant drin ks, soups, jam and squash Instant coffee, condensed milk, dairy whitener, infant food, chocolates and confectioneries Wheat flour (atta), salt, ready-to-eat mea ls, biscuits, confectioneries, snacks and cooking paste Fruit Juices, cereals, s nack foods, dairy derivatives Fruit juice, cooking pastes, coconut milk, tomato puree, lemon drink, chilli powder and honey Chocolates, hard-boiled confectioner y, malt foods, cocoa powder Sweets, snacks, syrups, crushes, chips and papads Bi scuits, flavored milk, dairy whitener, ghee, bread, cake and rusks Edible oils, vanaspati , bakery fats, fruit drinks, fruit nectar, fruit juices and tomato pur ee Nestle India Pvt.Ltd. Dairy, Beverages and Snack Foods ITC Ltd. Pepsico Dabur In dia Ltd. Cadbury India Ltd Haldirams Britannia Industries Ltd. Godrej Industries Ltd. Parle Agro Private Ltd. Staples and Snack Foods Beverages and Snack Foods B everages and Culinar Products Confectionery Snack Foods Bakery Products Beverage s and Staples Beverages, Bottled Water Snack Foods Theoretical perspective Page 8

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED V. METHODOLOGY: 5.1 Sample Design Regions Central kolkata North Kolkata South Kolkata Howrah-Hoogly Total Distributor Wholesaler Franchise Retail Shop Consumer 7 3 3 70 25 9 5 3 55 25 7 2 3 65 25 7 3 3 60 25 30 12 12 250 100 5.2 Research technique Exploratory and followed by Conclusive which is descriptive in nature 5.2 Research method The Questionnaire was designed by using both closed ended and open ended questio ns. 5.3 Type of Sample Disproportionate Strata wise random sampling and convenient sampling 5.5 Data analysis SPSS and Excel package Methodology Page 9

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED VI. PROCEDURE OF WORK: The total project was carried out and completed in a pre-planned manner. The pla nning was basically done on the time schedule of the project, target area to cov er for the project and the route map. The following steps will reveal the proced ure of work of the project: Study the Packaged food market under FMCG market as a whole Research on the company Collect required data from the company Design wh ole research Make questionnaires as a tool of research Area scanning Schedule th e plan date wise Visit key contacts according to the above plan While visiting t he stakeholders and consumers o Give introduction about my work o Listen to opin ions o Enquiry about problems and requirements o Notify urgent requirements o Fi ll up the questionnaires Track down the prospects Report to head office of Haldi ram Bhujiawala Limited in Kolkata regularly Initiation of research, analyze and findings for documentation Market study, justifications and recommendations Exec ution of the project detail to the head office of Haldiram Bhujiawala Limited in Kolkata

Understand the distribution process Find out the problems and expectations of st akeholders of the distribution channel Collect suggestions for company to improv e sales Procedure of work Page 10

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED VII.ANALYSIS OF DATA: 7.1 Analysis of data about complete study on distribution channel Distribution p rocess -The distribution channel planning is good.There are different types of distribution channel. They are: 0-level Company 1-level Company 2-level Company 3-level Company Distributor Wholesaler Retailer Consumer Distributor Retailer Co nsumer Franchisee Consumer Consumer Problems and expectations of stakeholders of the distribution channel1. In this market research we have found 55% distributors are very satisfied and30% distrib utors are somewhat satisfied as a distributor of Haldiram Bhujiawala Limited. Fi gure 1: Satisfaction level of distributors 2. According to our market research 45% distributors are getting not so much dam age products and 30% distributors are getting many time damage products from the company. 3.Company i n current scenario not giving damage product replacement.90% distributors think that sales can be increase through damage product replacement scheme.Then the di stributors can push products to the retailers. 4. Sales persons of the company a re working properly according to the distributors. 5.New initiative of the compa ny is recruitment of ISRs(Internal Sales Representative).ISRs are working in the ground level of the market.They are helping distributors from the company side. It is a new initiative ,so maximum distributors are not giving any feedback abou t them.Distributors are expecting ISRs will find out new retails to sell product s. 6. Distributors are visit retail shop as per the need of retailers. Distribut ors collect maximum orders through phone. Analysis of data Page 11

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED 7. According to our market research 35% distributors have distributorship of oth er companies. 8. In the case of satisfaction 34% retailers are somewhat satisfie d and 27% retailers are very satisfied about the company. Figure 2: Satisfaction level of retailers 9. According to our market research 44% retailers are many time and 33% retailer s are sometime getting damage products from the distributors and sometimes after some days products turned into damage. 10. According to the maximum retailers a dvertisements of the company create an impact to the consumer. 11.70% franchisee owners are not happy about the company.Because products of the company are avai lable in market easily in general retails. So consumers are not attracted by the franchisee. 12. Franchisee owners are satisfied by the company sales persons. 1 3. Wholesalers are not satisfied due to not availability of products in the mark et in occasion time. Suggestions for company to improve sales 1. Stakeholders of distribution channel want damage product replacement scheme.T hey can work more freely without fear. 2. Availability of all kinds of products from the company in all the time. 3. Maintaining a reasonable price of the produ cts for economically middle class people. 7.2 Analysis of data about Competitive analysis: Haldirams Prabhuji is the market leader in the branded snacks segment in the Kolk ata area.In the snacks segment the others branded competitors of Haldirams Prabhu ji are MPS,Swissyum,Parle Agro,Kitkat,Colis. Swissyum is the closest competitor of Haldirams Prabhuji.In the case of product pricing and product varity(local market target) swissyum is better than Haldirams Prabhuji in current scenario. Figure 3: Comparative discussion with the biggest competitor swissyum Analysis of data Page 12

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED In the sweet segment local sweet shops are the main competitors.In the case of p ackaged branded sweets Haldirams Prabhuji is the market leader. 7.3 Analysis of data about less selling of some products: In the different parts of Kolkata different products are recognized as less sell ing.But I found out some products which are overall lees selling.See Appendix ta ble number 1. 7.4 Analysis of data about consumer preference level of Haldirams Prabhuji: In this market research we have found that 41% consumers very like and 29% consu mers somewhat like Haldirams Prabhuji products. Figure 4: Liking level of consumers about Haldirams Prabhuji product

In the case of sweet products consumers equally preferred sweets of traditional shops and Haldirams Prabhuji.Secondly products of Ganguram are preferred by consumers. In the case o f snacks products 63% consumers preferred Haldirams Prabhuji product.18% consumer s have no such preference of any brand. Haldirams Prabhuji gift pack is not so popu lar in market.40% Consumers preferred chocolate as a gift item. In our market research 86% consumers are telling that they are gettin g products in market as per their requirements. But 14% consumers are not getting products as per requirements. Ac cording to 70% consumers aware about advertisements of Haldirams Prabhuji. Most p opular products of Haldirams Prabhuji are different kinds of sweets, mixtures and bhujia. 80% consumers only know about this kind of products.They are dont know about the other kinds of Haldirams Prabhuji products. Analysis of data Page 13

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED VIII. FINDINGS&INFERENCES: 8.1 Findings from objective I: Complete study on distribution channel More number of distributors are over all very satisfied about the company. Distr ibutors are not getting too much damage products from the company. In the occasi on time the products are out of stock due to improper demand estimation. Area fo r distributors is not strictly specified by the company which is problematic for distributors. Distributors wanting annual meeting with administration where the y can explain their problems directly to the administration. Franchisee owners a re not happy because of same products are available in market, so consumers are not giving extra attention towards the company authorized franchisee. Limited (w ithin expiry date) damage product replacement scheme can increase sales of produ cts and can increase sales varity of products. Then distributors can push produc ts to the retailers Local market targeted product may increase sales volume of t he company. 8.2 Findings from objective II: Competitive analysis Porters Competitive Forces M odel: Traditional competitors Main primary competitors of Haldirams Prabhuji are local brands of sweets and sna cks. This kind of brands occupied the huge market share due to low price.Other b randed competitors are MPS and Parle Agro , Laher Namkeen. Findings & Inferences Page 14

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED Threat of new entrants In Kolkata within a year a new company named swissyum hug ely occupied market share of snacks market.Their strong points are product varit y and attractive packaging .Products of swissyum are available in market in low price than Haldirams Prabhuji. Threat of substitutes Main substitutes of Haldirams Prabhuji products are Lays an d Kurkure.Differnet types of biscuits from different companys like Britania,Palre Agro are also strong substitutes of Haldirams Prabhuji.Cakes Bargaining power of buyers Products are ready to sell in a market in a fixed MRP.So there is no bar gaining power of buyers. Bargaining power of suppliers Haldiram Bhujiawala Limit ed is a highly reputed company in the market.As a consumer this is a huge size. Main required raw materials of this company are sugar, Ghee, Gram Flour, Edible Oil, Cashew etc. .The number of suppliers of this kind products are high.So ther e have not so much bargaining power of suppliers. 8.3 Findings from objective III: Study about less selling of some products The reasons behind less selling of some products are different in different prod ucts. Table 1: Reasons behind the less selling products Name of the Products 1.B adam Dalmoth 2.Masala Nimki 3.Mini Samosa 4.All types of Pickle 5.Soan Papdi Ora nge Bad smell High price High price and less quantity No damage replacement Tast e Reasons From consumers feedback we get that consumers are also dont know about the less se lling products. If company remove the particular problems of the products then t he products will do well in the market 8.4 Findings from objective IV: Find out consumer behavior towards Hadriams Prabh uji product Maximum consumers preferred Haldirams Prabhuji product very much. Consumers too m uch preferred snacks products of Haldirams Prabhuji.But in the case of sweets the y are not much preferred Haldirams Prabhuji. Consumers are not aware about less p opular products. Findings & Inferences Page 15

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED IX. RECOMMENDATIONS: 9.1 Schemes for retailers Haldiram Bhujiawala Limited is giving huge profit margin for the retailers.Compa ny can decrease that profit margin and instead of that company can give schemes for retailers on target basis.Then the sales will definitely increase.Other comp etitor brands like Lays,Kurkure are giving schemes for retailers. 9.2 Proper demand estimation Distributors are not getting products in the time of festivals as per their requ irements. It is a demand forecasting problem of this company. This is decreasing the sales volume of the company as per the demand. Through the sales department company can collect estimated demand from the distributors and franchises befor e any festivals. 9.3 Launching children targeted product Hadrians Prabhuji is a reputed and trusted brand in the market. Company can launc h new type of children targeted product like Kurume or Bingo. As per the market feedback this kind of product from Hadrians Prabhuji can get success in market. 9.4 Damage replacement scheme for less selling products Retailers are not agree to take less selling products for the damage problem.The y are taking only popular products of Haldirams Prabhuji.As we know retailers can push product to the consumer.If retailers are not agree to take less popular pr oducts then it is very problematic to increase sales of this kind of products. B ecause consumers are not aware about this products. Damage replacement scheme ca n erase this problem. 9.5 Strict area specification for Distributors Company can take strict position for area specification. Strict area specificati on can increase work efficiency of the distributors. Then distributors will give more concentration in their own area and they will try to find out more new ret ails shops. It will be beneficial for the company in long term. 9.6 Re-launch of Potato chips Few years back Haldirams Prabhuji launched a chips product. But company stopped p roduction of this product for few problems. There is a existing demand of this p roduct. Company can re-launch this product in market. This product will definite ly successful in market. Potato chips and potato based items are the most popula r with more than 85% market share in snacks market. 9.7 Giving target to the ISRs to find out new counters Company can give monthly target to the ISRs to find new counters. They will find new counter and give the names to the distributors. Target basis work of ISRs w ill increase the sales. 9.8 Unique products for franchisee Company can produce some unique products which will be only available in the com pany authorized franchisee. Then consumers will attract towards the franchisees. Recommendations Page 16

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED X. LIMITATIONS: Despite all the findings and recommendations, this study suffers from certain li mitations like all the data, findings, analysis and recommendations in this stud y are subject to the knowledge, experience and cooperation of the respondents. I t was assumed at the time of undertaking the project that the respondent group c hosen is the best that was available and the responses given by each one of them is genuine enough to draw meaningful conclusions. If the respondents responded to the questionnaire without any interest and attention, or if the respondents d o not have adequate knowledge about the market, then the entire exercise would b e a waste of time, energy and money. Also, many of the conclusions and recommend ations from this project would have no meaning and hence, would not be worth act ing upon. Limitations Page 17

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED XI. CONCLUSIONS: FMCG sector is the most growing sector in India. I have done a SWOT analysis of FMCG sector of India which shows every important point of this sector. In the ot her hand entries of multinationals, aggressive rise of commodity branding and lo w cost technology are changing the economics of the Indian food industry. Haldir ams Prabhuji is a unforgettable name in the food industry .There is some problems in the distribution channel which I have mentioned in this report. If company c onsiders my recommendations then there can be a possibility to improve the distr ibution channel. Less selling products have to push in the market from the compa ny side with different kinds of schemes for the stakeholders of distribution cha nnel. More advertisements and giving some facilities to the retailers can be inc rease the sales figure. In Kolkata area Haldirams Prabhuji is the market leader. Near competitor is Swissyum. Its product varity is the main plus point of this c ompany.As per the consumers Haldirams Prabhuji is the first preference of maximum consumers.If this company maintain their growth rate then in whole India it wil l take a major place. Page 18

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED XII. REFERENCES: Giiliz, G(2000) Advances in Consumer Research Volume 27. Fabian Faurholt Csaba. Biikent University Primary data collected: Questionnaires Filled by respondents Document s available from the company www.haldiramlimited.com Experience sharing with the employees of the company Various articles and magazines available for free read ing. Page 19

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED XIII. Annexure Figure 5: Haldiram s Prabhuji product range Snacks Aloo Bhujia Bhujia Chat patta Moong Dal Khasta All in one Sweets Ghee Laddu Kesar Laddu Kaju Barfi Papad Bikaneri Papad Masala Papad Pickle Mango Pickle Mixed Pickle Syrup Royal Kesari Thandai Royal Rose Stuffed Red Chilli Pickle Royal Badam Green Chilli Pickle Lemon Pickle Sweet Man go Lachha Royal Orange Elachi Soan Papdi Kesar Soan Papdi Ghee Soan Papdi Khatta Mitha Rossogolla Navaratna Gulab Jamun Supreme Mix Angoori Petha Tok Jhal Misti Rajbhog Makai Mixture Lachha Raita Boon di Kumhra Petha Mini Samosa Murukku Nimki Chana Chips Kaju Dalmoth Badam Dalmoth Badam Lachha Page 20

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED Figure 6: Frequency of getting damage product according to distributors Figure 7: Sales increase due to damage product replacement according to distribu tors Figure 8: Satisfaction about company s sales persons according to distributors F igure 9: Getting information about schemes according to distributors Figure 12: Distributorship of other companies of distributors Figure 10: Satisfaction about company s ISRs according to distributors Figure 13 : Frequency of getting damage product according to retailers Figure 11: Distributor s visit in retail in a week Page 21

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED Figure 18:Awareness about products of H aldirams Figure 14: Satisfaction about company s sales persons according to retailers Bhujiawala other than Bhujia,Mixture and sweet according to consumers Figure 15: Sales increase due to advertisement according to retailers Figure 19: Prefernce level of Bhujia and Mixture products according to consumers Figure 16: Availability of products in market according to consumers Figure 20: Prefernce level of sweet products according to consumers Figure 17:Preference of gift item according to consumers Page 22

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED Figure 21: Liking level of consumers ab out Haldirams Prabhuji product Figure 24:Satisfaction about companys sales persons Figure 22:Getting damage product frequency according to Franchisee owners Figure 25: Sales increase due to damage product replacement scheme according to Wholesalers Figure 26: Frequency of getting damage products according to Wholesalers Figure 23: Satisfaction according to Franchisee owners Page 23

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED

Questionnaires: Questionnaire for Distributors 1. a. Name. b. Contact No. .. c. Addres king as a distributor of Haldiram Bhujiawala Limited? ................... 2. How much you are satisfied as a distributor of Haldiram Bhujiawala Limited? a)Extre mely b)Very C)Somewhat d.Little e.Not at all 3.Do you get physically damaged pro duct any time? a) Every time b) Many time c) Sometime d) Not so much e) Not at a ll 4.How do you sort out the problem of receiving physically damaged product?... ..................................................... 5. If company gives you da mage product replacement scheme then sales will increase. a. Yes b. No 6. Do you satisfied about the companys sales person? a. Yes b. No c.Neutral 6. a)If not ye s then specify the reasons 6.a)Do you getting in Neutral 7. Are you satisfied about the companys ISE? a. Yes b. No c.Neutral 7. a )If not yes then specify the reasons 7. b) What ................................................................. 8. What are th e difficulties/problems you face while working with the company? ............... ............................ 9.What are your suggestions to resolve the problems ?............................................................................... ....... 10. What kind of problems do you face with your retailers?.............. ................................................................... Page 24

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED

11. What company can do to resolve this problem?................................ ............................................................ 12. By which proces s you are sending products to the Retailers?.................................... ........................................ 13. How do you collect order from the r etailers? a. Telephonic b. Own sales person c. Company sales person d. If others then specify.. 14. How many times do you take order from r ed 15. Who are the competitors of Haldiram Bhujiawala Limited in your local mark et? ................................................... 16.Rate their performanc e along with Haldiram Bhujiawala limited as per the following parameters.(E=exce llent,G=good,F=fair,P=poor) Competitor Name Product pricing Product availability Product Varity and quality Customers awareness or advertisement HBL

17.Mention some of the strategies of the competitors that you feel are better th an Haldiram Bhujiawala Limited? .................................. are not doing well in the market? ............................................. .............................. 19. What are the problems Product 2c. Product320. Give your suggestions on how company can increase the s ales volume?............................................................. 21. Wh at do you more expect from the company? ........................................ ........................................................... 22. Do you have any distributorship of others company? a. Yes b. No Page 25

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED

22. a)If yes then specify.. 23.How many wor Questionnaire for Retailers 1. a. Name b. Contact No. . ................. 3. Are you overall satisfied as a retailer of Haldiram Bhujiaw ala Limited? a)Extremely b)Very C)Somewhat d.Little e.Not at all 4.If you are not satisfied then according to you what is the problem?........... ............................................................ 5. Do you get your product from the distributor on time as per your requirement?(give marks out of 5).. 6. How often you get physically damaged product any time? a) Every time all b) Many time c) Sometime d) Not so much e) Not at

7. What are the other difficulties/problems you face while working with the dist ributer?............................... ............................... problems? 9) Who are the competitors of Haldiram Bhujiawala Limited in your loca l market? ................................................... 9. a)Rate their performance along with Haldiram Bhujiawala limited as per the fo llowing parameters. (E=excellent=good=fair, P=poor) Competitor Name Product pricing Product availability Product Varity and quality Customers awareness or advertisement HBL

10. Mention some of the strategies of the competitors that you feel are better t han Haldiram Bhujiawala Limited? ................................... iawala Limited that are not doing well in the market? .......................... ................................................ 12. 16.What are the problems according to you on the particular products? a. Pro duct 1b. Product 2c. Product 3Page 26

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED 13. 7.Do you satisfied about the companys ISE? a. Yes b. No c.Neutral 13. a)If not yes then specify the reasons. 14. Do 14. a)If not yes then specify the reasons. 15) In 4 d.Not regularly 16) Have you seen any kind of advertisement benefit in sales? a. Yes b. No 17. Give your suggestions on how company can increase the sales volume? ........ ........................................................ ....................... ................................................................................ .......................................................... 18. What is your more expectation from the company? ................................................. ....................................... Questionnaire for Franchisee 1. a. Name. b. Contact No. .. c. Address.. d. From ed? ................... 2. How much you are satisfied as a Franchisee of Haldira m Bhujiawala Limited? a)Extremely b)Very C)Somewhat d.Little e.Not at all 3.Do you get physically damaged product any time? a) Every time b) Many time c) Sometime d) Not so much e) Not at all 4. Do you satisfied about the companys sales person? a. Yes b. No c.Neutral

4. a)If not then specify the reasons 5. What are the ....................................... .................... ................................................................................ ... 7. Who are the competitors of Haldiram Bhujiawala Limited in your local mark et? 8. a)Rate their performance along with Haldiram Bhujiawala limited as per the fo llowing parameters. (E=excellent=good=fair, P=poor) Competitor Name Product pricing Product availability Product Varity and quality Customers awareness or advertisement HBL Page 27

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED

9.Mention some of the strategies of the competitors that you feel are better tha n Haldiram Bhujiawala Limited? .................................. 10. Name some of the products of Haldiram Bhujiawala Limited that are not doing well in the market? ............................................................ ............... 11. What are the problems according to you on the particular products? a. Produc t 1b. Product 2c. Product312. Give your suggestions on how company can increase the sales volume? ............................................................. STUDY ON CONSUMER BEHAVIOUR TOWARDS HALDIRAMS PRABHUJI PRODUCT Q1) What is your age (in years)? a)Less than 18 a) Male b)18-25 C)25-35 b)Female d.35-50 e.More than 50 Q2) Gender: [Pl. put tick mark in appropriate box] Q3) What is your family income annually (Rs. In thousands)? a)Less than 10 b)1020 C)20-30 d.More than 30 Q4) How much you like a Haldirams Prabhuji product? a)Ext remely b)Very C)Somewhat d.Little e.Not at all

Q5) How much you [or your family spend monthly for fast food(without main food)? Rs . Q6) Till now have you or your family members purchased any Haldirams Prabhuji ? a. Yes b. No Q7) If yes then how many(amount) are you purchasing in a month? Rs................... ....... Q8) which sweet product you would like to prefer? a) Traditional stores s weet c) K.C.Das d) Others b) Haldirams Prabhuji Sweet d)Ganguram

Q8.a)If others then specify Q9) Which Bhujia and mixture product you a and mixture brand c) No such preference on any particular category e) Others Q 9)a) If others then specify Q10) Without Bhu a. Yes b. No b) Haldirams Prabhuji d) Laher namkeen

Q10) a) If yes then specify. Q11) In general which product would yo Page 28

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED a. Haldirams Prabhuji gift pack c. Choco late e.Others Q11)a)If others then specify. Q12) Do you get Hald er your requirements? a. Yes b. No b. Traditional stores sweet d. No such prefere nce on any particular category Q13) Do you get any time any type of damaged product of Haldirams Prabhuji? a. Yes b. No

Q13) a)If yes then specify.. Q14) Have you seen any kind of advertisem Q14.a) If yes then where? a. News paper c. T.V. e. Others Q15) Have you any idea about any new product? a. Yes Q16) a) If yes then please specify Questionnaire for wholesalers

1. a.Name. b. Contact No. .. c. Address.. 2. Do you Sometime d) Not so much e) Not at all 3 . If company gives you damage product replacement scheme then sales will incre ase. a. Yes b. No

4. What are the difficulties/problems you face while working with the distributo rs? .................... 5. What are your suggestions t .............................................. 6. ket? 7. a)Rate their performance along with Haldi =fair, P=poor) Competitor Name Product pricing HBL Product availability Product Varity and quality Customers awareness or advertisement Page 29

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED

8. Mention some of the strategies of the competitors that you feel are better th an Haldiram Bhujiawala Limited? .................................. ala Limited that are not doing well in the market? ............................. .............................................. 10. What are the prob ar products? a. Product 1b. Product 2c. Product311. Give your suggestions on how company can increase the sales volume? ........................................ ..................... Page 30

A COMPLETE STUDY ON DISTRIBUTION PIPELINE AND CONSUMER BEHAVIOR WITH COMPETITIVE ANALYSIS OF HALDIRAM BHUJIAWALA LIMITED HOUSE OF QUALITY: [Source-Operations & Supply Management,Chase-Shankar-Jacobs-Aquilano,12th editio n,page no.-121] Page 31