A STUDY ON VISI COOLER AND ACHIEVEMENT OF VALUE PER OUTLET

OF THE RETAILERS

SUBMITTED BY
KARTHIK K R
INTRODUCTION
Cadbury Diary Mik Silk is the premium chocolate produced and marketed by Mondelez
International. It’s a premium chocolate so that it gets melt when kept on places with higher
temperature. Visi cooler are those coolers which are provided to the retailer of Mondelez
International, free of cost in order to prevent melting of its premium chocolate, Cadbury Diary
Milk Silk. This study is regarding the visi coolers given by mondelez to its retailers.

PROBLEM RELATED TO THE STUDY

The problem related to the study is the usage of the visi coolers and the achievement of the visi cooler
targets or the Value per Outlet of the Companies

ELABORATION OF THE PROBLEM

The problem taken for this particular study is the non-achievement of the VISI targets by the retailers. At
the time of deploying the coolers, the shopkeepers has been given a particular target purchase of
chocolate for each month. But it has been found out that a large portion of the retailers are not
achieving the VISI targets. The company has invested in these cooler in with an expectation of certain
level of purchase by the retailer. Thus the problem here is the shortage in the purchase made by the
retailer. According to the company, the retailer must atleast purchase the minimum target given to him,
so that the company could get a part of its investment in the cooler back.

OBJECTIVES OF THE STUDY

• TO STUDY THE REASONS BEHIND NON ACHIEVEMENT OF VPO

• TO KNOW WHETEHR THE COOLERS ARE IN USE

• TO KNOW THE PURITY OF THE COOLERS

RELEVANCE OF THE STUDY

The company has invested a reasonable amount of money for the VISI coolers. These cooler are
provided to the shop owners free of cost. So the company is expecting a certain amount of target.
Through this study, the reasons for the non-achievement of the VISI target could be understood. Also
the study aims to check whether the coolers are physically present in the shops. Their purity are also to
be checked along with this.

SAMPLING AND SAMPLE SIZE

A sample of 278 shops were taken under 2 distributors in Trivandrum. The samples were directly
allotted by the company while allotting the project.

METHODOLOGY OF THE PROJECT

The outlets with the visi coolers were visited directly and data was collected with the help of
questionnaire.
 ANALYSIS OF DATA
TYPE OF SHOP

TYPE OF SHOP NOS

Food Store 92
Low End Grocer 92
High End
Grocer 40
SAS 30
CHEMIST 8
PANPLUS 14
OTHERS 1
TOTAL 277

TYPE OF SHOPS

FS LEG HEG SAS CHE PAN OTHERS

Food stores and Low end Grocery stores compute the majority of the stores. Both of them copute
almost 33% each respectively.
 TYPE OF COOLER

TYPE OF
COOLER NOS
16L 59
33L 161
60L 3
200/300L 54

TOTAL 277

Chart Title
180
160
140
120
100
80
60
40
20
0
16L 33L 60L 200/300L

33L coolers are the most commonly used coolers, because of the convenience to use. 16L,200L
and 60L together comprise almost 41% while 33L cooler alone makes a 59% of the total.
 COOLER STATUS

NOS %

ON 72 25.99278

OFF 192 69.67509

COOLER
MISSING 13 4.693141

COOLER STATUS

ON OFF COOLER MISSING

Almost 70% of the coolers are kept off. Only 26% are ON. 13 out of 277 coolers are totally
missing.
 REASONS IF OFF

NOS
ELECTRICITY PROBLEM 94
SPACE PROBLEM 10
NOT IN USE 22
COMPLAINT 26
STORE CLOSED 17
SWITCH BOARD PROBLEM 5
OTHER 18
TOTAL 192

REASONS
100
90
80
70
60
50
40
30
20
10
0
ELECTRICITY SPACE NOT IN USE COMPLANIT STORE SWITCH OTHER
PROBLEM PROBLEM CLOSED BOARD
PROBLEM

The major reason for not switching on the cooler is the electricity problem. The retailer
complaints of the electricity charges. Also it can be understood that 39 coolers are not used
which include 17 coolers of the stores which are permanently closed.
 PURITY

NOS
IMPURE 142
PURE 97
OTHERS 38

TOTAL 277

PURITY

IMPURE PURE OTHERS

Almost 50% of the coolers are impure. The products of other companies could be found out in
these coolers. 35 % of the coolers are pure. Others include coolers which are not used and
coolers of permanently closed shops.
 VPO ACHIEVEMENT

%
NOS
71.84116
YES 199
22.02166
NO 61
STORE 6.137184
CLOSED 17
100
TOTAL 277

VPO ACHIEVEMENT
250

200

150

100

50

0
YES NO STORE CLOSED

72% of the shops have achieved their VPO. 22% have not achieved and 6% are the closed shops.
 REASONS FOR NON ACHIEVEMENT

REASON NOS
COOLER
COMPLAINT 6
CREDIT PROBLEM 3
FINANCIAL
PROBLEM 2
LOW SALES 38
OFF SEASON 6
OTHERS 6

TOTAL 61

REASONS

COOLER COMPLAINT CREDIT PROBLEM FINANCIAL PROBLEM

LOW SALES OFF SEASON OTHERS

The major reason for the non-achievement of VPO is the Decrease in the sale due to market
fluctuations. Cooler complaint, off season, financial problem etc. comprises of the other
reasons for the non-achievement of the visi target.
 FINDINGS

 33L coolers are the most used coolers. These coolers are more preferred because of its
convenience and easily achievable Visi Target.

 192 out of 277 coolers are not switched on, which means more than 70% of the total coolers are
kept idle.

 The major reason for not switching on the cooler is the electricity charges that should be
afforded by the retailer. 22 coolers are not used and are wasted. The other reasons for not
switching on the cooler are space problem, switchboard complaint, cooler complaint etc.

 More than 50% of the cooler are impure, which means the products of other companies are
kept in the cooler. Only 92 out of 277 coolers are kept pure. This is not only a wastage of the
marketing expense but also an advantage for the rival companies.

 Almost 72% shops have achieved their VPO targets . This shows that majority of the shops make
purchase of chocolate as per the expectation of the company.

 Some of the shops have not achieved their VPO targets due to certain reasons. The major
reason is the low sales due to the market conditions. Other reasons include cooler complaint,
credit problem etc.