A PROJECT REPORT ON

PBU CUSTOMER ENROLMENT

FOR

BOOKER INDIA PVT LTD MASTER OF MANAGEMENT STUDIES (MMS) UNIVERSITY OF MUMBAI
SUBMITTED TO

SINHGAD INSTITUTE OF BUSINESS MANAGEMENT CHANDIVALI

UNDER THE GUIDANCE OF

PROF. LALIT BHOLE/ DEV KOLI

SUBMITTED BY

SHAH AFTAB
(2012-14 & 175)

1|Page

2|Page

CERTIFICATE

This is to certify that SHAH AFTAB has successfully completed the project work as a part of academic fulfillment of Masters of Management Studies (M.M.S.) Semester II examination.

Name & Signature of Project Guide

Date : _________________

DIRECTOR SIBM

3|Page

DECLARATION

I, Shah Aftab of Master of Management Studies (2 nd Semester) of Sinhgad Institute of Business Management (SIBM), hereby declare that I have successfully completed this Project on (HR PLANS & POLICIES FOR NEW START-UPS) in the academic year (2012-2014). The information incorporated in this project is true and original to the best of my knowledge.

_____________________________ Signature

4|Page

ACKNOWLEDGEMENT

Thanks giving are the most pleasant of all jobs but it is difficult when one tries to put into words. I take immense pleasure in completing this project and submitting this final project report The whole summer internship period with BOOKER INDIA PVT LTD has been full of learning and sense of contribution towards the organization. I would like to thank BOOKER INDIA PVT LTD for giving me an opportunity of learning and contributing in the entire project and also thanks to the people who made this experience memorable one. A successful project can never be prepared by single efforts of people to whom project is assigned but it also demands the help and guidance ship of some conversant person who `helped the undersigned activities. In this context as a student of Sinhgad Institute of Business Management I would first like to thank to Prof. Dev Koli & Lalit Bhole for assigning this project to me as a worthwhile topic.
During the actual project at Booker India, Mr. Arun Sen has been a source of inspiration through his constant guidance, personal interest, encouragement and help. I convey my sincere thanks to him. In spite of his busy schedule he has always taken out time for me, I am thankful to him for reposing confidence in my abilities and giving me the freedom to work on my project. I would like to thank them for their invaluable guidance, keen interest, co-operation, inspiration and of course moral support throughout my project session.

5|Page

Index
S No Particulars A PRELIMINARY SECTION

Page No

Title Page Certificate Declaration Acknowledgement Preface or Forward Abstract

MAIN BODY OF THE REPORT

I Introduction
o o o o o o o o

Executive Summary Objectives of the study Scope of the study Company Profile History of the company Target Customers Period of study Study Area

III Research Methodology IV Presentation and Analysis of data

Text Tables Figures

V Summary and Conclusion

C REFERENCE SECTION

Bibliography 6|Page

Appendix

CHAPTER 1

Executive Summary
Booker is a wholesale company which provides all food & grocery products to all the retailers. Its primarily in B2B and is rated as UKs No.1 wholesale company. During these 2 months duration which I spend with them were mainly to determine the target customer and provide maximum sales by bringing in more and more retailers. During this duration I gained the knowledge of how pricing and distribution is done for different FMCGs. Understanding the market and the need of all shopkeepers. Understanding the impact of manufacturers, wholesalers and other suppliers on the retailers pricing strategy. On daily basis I made visits to approximately 25-30 shops to find out the factors that influences purchase decision of retailers.

The Company is the UK's largest cash and carry operator, offering branded and private-label goods which are sold to over 486,000 customers including independent convenience stores, grocers, leisure outlets, pubs and restaurants. The Company currently lists circa 18,000 product lines, comprising an extensive range of branded and own label grocery, fresh and frozen food, beers, wines, spirits, tobacco and non-food items. In the year to March 2013, sales totalling 2.8 billion were collected by the customer from the groups branches and sales totalling 1.2 billion were delivered to the Companys customer premises. In June 2012, the Company was awarded "Wholesaler of the Year" and "Green Wholesaler of the Year" by The Grocer magazine.

7|Page

The Group currently trades from 172 branches in the UK. The average size of these branches is approximately 47,000 sq ft, although the Company has four branches over 100,000 sq ft and 12 branches under 20,000 sq ft. It operates 30 stores across the UK, one of the stores being in Belfast. Makro currently operates a primarily cash-and carry wholesale business, with a small delivered service that was introduced in 2009. Unlike Booker Makro offers a broad range of non-food items, such as stationery and office equipment, furniture and furnishings, catering and cleaning equipment, clothing, general maintenance products and electrical appliances. Booker Direct is the Groups delivered wholesale business which serves national accounts UK-wide. It has already established itself as the UK's largest food supplier to the cinema sector with customers including VUE and Odeon. Other accounts include HM Prisons in England & Wales (in partnership with DHL), Marks and Spencer and the NAAFI, as well as the more recent additions of SSP, HMV, and WH Smith Travel Ltd. In September 2009 we opened our first business centre in Mumbai. We now have 12,000 customers and the customer reaction has been excellent. We have also launched 185 Happy Shopper symbol retailers which harness the lessons from Premier in the UK for the Kirana stores of Mumbai. In 2011 we opened our first joint venture business centre in Pune. Our partner in Pune is Satnam Arora, who has expertise which compliments our own. We now have 3 branches in Mumbai and one joint venture in Pune. We anticipate opening a further two branches in 2013/14. The Company employed approximately 9,658 employees as at 29 March 2013. The Group is an equal opportunities employer and the Directors believe that the Groups people are the key to the future of its business and intends to continue to develop them at all levels of the business.

8|Page

CHAPTER 2

OBJECTIVES OF THE STUDY

1. Understanding the market and the need of all shopkeepers.

2. To attract more and more retailers from the market and sell goods at a lower price and provide them with the maximum profit margin.

3. To Understand Internal and External Customer interactions.

SCOPE OF THE STUDY

1. The main aim of Booker is to attract more and more retailers from the market and sell goods at a lower price and provide them with the maximum profit margin.

9|Page

2. So my primary work was to bring in more retailers by selling Bookers membership for free to these retailers. In these two months I made more than 150 customers for Booker.

CHAPTER 3

10 | P a g e

INTRODUCTION OF THE COMPANY

Booker India Pvt. Ltd., a wholly owned subsidiary of Booker Group Plc, is the largest Cash and Carry operator with 173 stores in UK. Booker Cash & Carry is a business to business wholesale format which is open to foreign direct investment. Unlike other players in this field, Booker India is mainly focusing on the food, beverage and other non food categories. Booker is the UK's largest food wholesaler operator offering branded and private-label goods to over 400,000 customers including independent convenience stores, grocers, pubs and restaurants. In June 2008 Booker was awarded 'Wholesaler of the Year' by The Grocer magazine. Booker currently lists over 20,000 lines of product, comprising a fully comprehensive range covering branded and own label grocery, fresh & frozen food, beers, wines, spirits, tobacco and non food items. Their aim is to offer their customers a Better Choice, Better Price and Better Service". The firm is listed on the London Stock Exchange and a constituent of the FTSE 250 Index and was the former sponsor of the Booker Prize for fiction which was established in 1968.

Type Traded as

Public LSE: BOK

11 | P a g e

Industry Founded Headquarters Key people Products Revenue Operating income Net income Website

Retail catering 1835 Wellingborough, England Richard Rose, Chairman Charles Wilson, CEO Cash and carry outlets 3,932.8 million (2012)[1] 89.6 million (2012)[1] 74.9 million (2012)[1] www.bookergroup.com

HISTORY
The Company was founded by George and Richard Booker in 1835 when they bought their first ship and established the Booker Line. It diversified into the distribution of goods rather than the mere shipping of them and gradually disposed of its fleet of ships: the focus was on food wholesale distribution and by 1978 the Company had over 100 warehouses across the UK and trading as Booker, McConnell Ltd. Among other interests, it operated the sugar industry in Guyana (British Guiana before independence in 1966), running five Booker line ships, until it was nationalized circa 1970. After six months Booker was called back to market the sugar. Booker had a long history of exploitation of sugar workers through the indentured labour system during the 19th and 20th centuries. At its peak it controlled 75% of the sugar industry in British Guiana and was so powerful that a common joke was to refer to the country as 'Booker's Guiana'. In 1952 Jock Campbell took over the Chairmanship of the company and his Fabian social politics transformed it dramatically into a benevolent force providing major benefits for sugar workers. Jock Campbell was also instrumental in the setting up of the Booker's Author Division, which sponsored the Booker Prize, now sponsored by the Man Group plc. The group also held the rights to Agatha Christie's extensive book collection until 1998 when it was sold to Chorion who bought Booker's 64% stake in Agatha Christie Ltd for 10million. In 1986, the company set up a short lived co-venture between the directors of Siriol Animation to create Kalisto Ltd.. Kalisto also developed a show called Space Baby (which eventually became Fantastic Max), along with another series called Satellite City (which was co-produced with Fairwater Films) and the animated film The Little Engine That
12 | P a g e

Could. Kalisto barely lasted a year before Booker bought the rights back. In 2000 Booker was purchased by Iceland Supermarkets, via its Big Food Group vehicle. Then in 2005 Big Food Group was in turn bought by acquisitive Icelandic group Baugur, which split Booker and Iceland again into different companies. In June 2007 Booker reversed into AIM-listed wholesaler of groceries Blueheath, to form Booker Group plc. Baugur sold all its assets in Booker Cash & Carry in June 2008 only weeks after its founder was found guilty of accounting irregularities. Baugur collapsed in February 2009 amidst the Icelandic financial crisis. In 2009, Booker opened its first store in India in Mumbai. The UK chain continues to explore options outside Maharashtra and in the next five years, plans as many as 20 cash and carry stores in India. On the 30th May 2012, Metro Group of Germany sold the 30 Makro UK stores and all operational assets to Booker Group Plc in return for 9.99% of Booker's share capital, plus 15.8 million in cash. On the 29th May the share transaction was valued at 123.9 million. The merger was immediately referred to the Office of Fair Trading, who in Novermber 2012 referred it to the Competition Commission. The Commission will decide whether the acquisition "may be expected to result in a substantial lessening of competition in any market or markets for goods or services in the UK. Booker and Makro are both major national cash and carry wholesalers to independent retailers and caterers. The cash and carry market is worth an estimated 11 billion in the UK." The CC published its final report in April 2013, and the acquisition of Makro was cleared Operations The Company supplies approximately 326,000 catering businesses and 78,000 independent retailers; it also operates cash and carry branches throughout the United Kingdom (as well as a few in India) and operates a national delivery service in the UK.

13 | P a g e

BOOKER IN INDIA

The company started first store in Pune

Thane store after Pune

Goregaon store They also started in Kandivali, Chandivali in Maharashtra.

14 | P a g e

They also going to start in Surat after the end of this year. 185 Happy Shoppers Shop in India.

Target Customers

Independent Retailers: Provision General Store, Nonfood Stores, Pan/Bidi Shop, Sweets/Farsan Shop

Caterers: PBU (Personal Business Users) Bakeries Fast Foods Guest Houses Hostels Restaurants Road Side Food Stalls Offices Hospitals/Clinics /Nursing Homes
15 | P a g e

Institutions, School, Event Caterers

PERIOD OF THE STUDY:Study conducted between 2 months of my internship that is from 6th May till 6th of July in Booker India Pvt Ltd.

STUDY AREA:I was in Chandivali branch of Booker. The Area which I got is Kurla & Ghatkopar. 1. Kajupada, safed pool, Jari mari. 2. Bail bazaar, Lbs road Kurla. 3. Asalfa village, Tilak nagar. 4. 90feet road. 5. Narayan nagar.

16 | P a g e

CHAPTER 5

RESEARCH METHODOLOGY

Type of Research: It is a Descriptive research. Descriptive research involves gathering data that describe events and then organizes, tabulates, depicts, and describes the data collection

Type of Data : Primary Data.

Method of Data Collection: Data is collected through a structured questionnaire.

Sampling: Convenient sampling.

Sample size : 100.

17 | P a g e

Data analysis technique : Quantitative.

Data analysis tool : Pie charts.

CHAPTER 6

18 | P a g e

ANALYSIS OF THE DATA

The collected data were not easily understandable, so I like to analyze the collected data in a systematic manner and interpreted with simple method. The analysis and interpretation of the data involves the analyzing of the collected data and interpretation it with pictorial representation such as pie charts and others.

19 | P a g e

Figure 1

Interpretation: 52% respondents consist of Kirana & General Stores, 22% of respondents consist of medical stores, 14% of respondents consist of pan shop, 12% of respondents consist of PBU (Personal business users).

20 | P a g e

Interpretation : The Area which was allotted to me for conducting the survey 73% of respondents were already a member of Booker & remaining 27% were not a member of Booker.

21 | P a g e

Interpretation: 48% of people were come to know about promotion by salesman, 22% of people were come to know by pamphlet, 12% people were come to know by word of mouth, & 18% people were come to know by friends.

22 | P a g e

Interpretation: 22% of the consumers buy goods weekly from Booker India, 52% of the consumers buy goods monthly from Booker India and 26% of the consumers buy goods quarterly from Booker India.

Interpretation: 41% of the consumers buy food items, 23% of the consumers buy non-food items, 24% of the consumers buy confectionery and 12% of the consumers buy beverages.

23 | P a g e

Interpretation: 53% of the consumers buy products within the range of Rs.0-5000/-, 21% of the consumers buy products within the range of Rs.5000-15000/-, 22% of the consumers buy products within the range of Rs.15000-25000/- & 4% of consumers buy products above the range of Rs.25000/-

24 | P a g e

Interpretation: As per the survey 22% consumer go booker because of satisfaction, 20% are happy with the service, 42% go booker because the price is very low as compare to other, 16% because of availability of products.

25 | P a g e

Interpretation: 40% of the consumer buy goods from distributor, 25% of consumer buy goods from metro, 22% of consumer buy goods from Reliance, 10% of the consumer buy goods from others.

Interpretation : 62% of the consumer are affected by various scheme & promotional activities, 38% are not affected by any scheme & promotional activities
26 | P a g e

27 | P a g e

CHAPTER 7

LIMITATIONS OF THE STUDY

Data collection: It was difficult to collect data from a few customers.

Convincing them to become a member: For some shopkeepers, any decisions regarding become a member of a Booker, for example we want any document or proof for a membership like Shop license, Electricity bill, Pan card etc. So we have to convince for that.

Tough competition by Distributors, Metro, Reliance Fresh: Many of the Shopkeepers that we covered already by other Distributors, Metro, Reliance Fresh , and so they were not easily ready to move to Booker.

Changing mind of the Retailers: There were many Shop retailers who liked our membership offer and gave us a positive response to become a member , but due to the change of mind they cancelled their membership and we lost those potential customers.

Cash & Carry Policy: Booker follows a policy of dealing only in cash & carry, but most of the retailer were not so easily shell out money in cash they prefer more of credit policy.

28 | P a g e

CHAPTER 8

SUGGESTION

Increase the number of Booker Outlets. Build proper positioning in the minds of the Retailers. Come up with new creative advertisements on TV Specially in Commercial advertisements.

Service check calls at regular intervals to retain the customer & provide him good experience

Set up workshops in local areas to create awareness about Booker among the retailers. Booker should increase number of offers & schemes to attract more retailers Booker should also introduce credit policy because many of the retailers do not believe in giving out cash so easily.

29 | P a g e

CHAPTER 9

CONCLUSION

30 | P a g e

CHAPTER 10

ANNEXURE

Name: Business name: 1. Type of Outlet o Kirana & General store o Medical store o Pan Shop o Novelty shop o PBU 2. Are you a member of Booker India? o Yes (if yes then continue) o No (if no then please move on to Question no. 8) 3. How do you come to know about Booker Promotions? o Salesman o Pamphlet o Word of Mouth o Email/ SMS 4. How often do you purchase goods from Booker india ? o Weekly o Monthly o Quarterly
31 | P a g e

5. What type of segment do you prefer to buy? o Food o Non food o Confectionary o Beverages 6. What is the range of shopping you generally do from Booker India (in Rupees)? o 0-5000 o 5000-15,000 o 15,000-25,000 o 25,000-above 7. Rate the following parameters of bookers India on the given scale (1=Poor, 5=Good) o Customer Satisfaction 1_2_3_4_5 o Service 1_2_3_4_5 o Pricing 1_2_3_4_5 o Availability of Products 1_2_3_4_5 8. If not Booker, from where you prefer to buy goods ? o Distributor o Semi wholesaler o Metro o Reliance cash and carry o Others 9. What is your opinion on Cash & Carry operations ? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ___

10.

Any suggestions ? ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____

11. Do the various schemes / promotional activities affect your purchase? o Yes o No

32 | P a g e

CHAPTER 11

BIBLIOGRAPHY

Philip Kotler, Kevin Lane Keller, Abraham Koshy, MithileshwarJha, Marketing Management , 13th edition (Personal Education, 2009).

S.A. Chunawalla; Sales Management; 5th edition; 2007. ProsenjitDatta, Sourav Mukherjee; The Marketing White book; 2012-2013. S.A. Chunawalla; Advertising Sales & Promotion Management . Peter Amis & Jackie Head The Selling Handbook.

WEBSITE : www.BookerIndiapvtltd.com
33 | P a g e

Search engine: Google.com Wikipedia

34 | P a g e