Project Report on Summer Internship With Hyperlink

Summer Internships 2012

PGDM 2011-13

Summer Internship Project Report

On

“A study on the distribution channel of Britannia bread

in Jaipur city”

Undertaken at

Britannia Industries Ltd.

New Delhi

Prepared By:

Mohit Sharma

Roll No.-11GM033

Company Guide Faculty Guide

Mr. Kamal Arya Ms. Shweta Nahar

(Senior Executive Officer)

DECLARATION

I Mohit Sharma student of Post Graduation Diploma in Management in the Academic year 2011-

13 at IILM-AHL, Jaipur (Rajasthan) hereby declare that I have completed project titled “A Study

of the distribution channel of Britannia Bread in Jaipur city” as a part of the course requirement

of PGDM of IILM-AHL, Jaipur.

I further declare that the information presented in this project is true and original to the best of

my knowledge.

Date:

Place: (MOHIT SHARMA)

Acknowledgement

The completion of this project gives me an opportunity to convey my regards to all those who

helped me to reach a stage where I have the confidence to launch my career in the competitive

world of management.

I take this opportunity to express my heartfelt gratitude to Mr. Yudhishter Shringhi, Regional

Sales Manager, Bread Britannia Industries Limited for providing this opportunity to complete

my summer training with Britannia Industries Limited.

I wish to express my deep sense of gratitude to my company guide Mr. Kamal Arya, Sales

Executive Officer Bread Britannia Industries Limited who provided me the most needed

guidance, suggestions and support to make this project a wonderful reality.

I would like to express my sincere gratitude toward IILM Academy of Higher Learning,

Jaipur and Britannia Industries Limited (BIL) for giving me this great opportunity to work

and learn through the summer internship program.

These past eight weeks were of great importance as they have added value to my knowledge. I

would like to acknowledge the contribution of persons Mr. Bipin Gupta (Territory sales in

charge), Mr. Abhishek (P.S.M.), Mr. Rajendra Khandelwal (S.S.), Mr. Rana Day as well as all

other people with whom I have interacted during the course of my training. I am grateful to each

and every valuable interaction that bought me to a better understanding.

I am grateful to my faculty guide Ms. Shweta Nahar, faculty associate, IILM-AHL, Jaipur who

endow with me the right direction to complete this project.

I am thankful to my parents, friends who have directly or indirectly supported me and inspired

me in this project.

Regards,

Mohit Sharma

PREFACE

In spite of theoretical knowledge gained through classroom study, a person is incomplete if not

subjected to practical exposure of real corporate world and the challenges and problems that one

has to face at the actual work place. In this context a research project was assigned as the

summer training to the management students by Britannia Industries Limited (BIL). Besides this

assignment being useful to the industry, it also provided the students with practical utility of their

class room learning and exposed the students to the happenings of the real business world.

The IILM Academy of Higher Learning (PGDM) program is considered to be one of the most

reputed professional courses in the field of management and is equivalent to MBA. Under this,

industrial internship is a part of the curriculum of PGDM program. Every student has to undergo

a training of approximately two months and give a brief account of the work he/she performed

during training.

The training gives a practical exposure to the environment of the business world to each student

and also confronts students with practical knowledge. It also gives an opportunity of exposure to

that particular field of specialization in which s/he wants to specialize in. Therefore every trainee

gets the freedom to decide his/her particular field of interest. It also gives a trainee, chance to

have an interaction with people at real workplace who are working at different positions with

different authorities and responsibilities. The project is an attempt in this direction, in which the

trainee has tried to assimilate and depict inference drawn during the study. The trainee hopes that

it will be fruitful to the company and the company can modify/implement its strategy

accordingly.

Abstract

The project titled “A study on the distribution channel of Britannia bread in Jaipur city” is based

on the primary & secondary data research to analyze the Retailers & Consumers perception and

coverage of the Britannia bread in the market.

This project also focuses on some specific points regarding quality, supply time, man power,

display & visibility & some regional factors i.e. nature of SKU, consumption patters which

affects the demand and ultimately sales of Britannia Bread.

This internship report regarding the Britannia bread is not like any other projects, this report give

the clear picture of bread market awaiting for the Britannia and there is far way to go to capture

the market of bread. It useful form both the sides i.e. for company it will be base for making

further steps for increase the sales and for those who are want research on the same topic will get

the clear idea of the distribution channel and the factors affecting for the same.

This study just not include the research but also it define the in depth study of Britannia

marketing mix and competitive existence in the market, awareness of the product among target

market and last but not the least researcher’s observation with the suggestion for betterment of

the Britannia to capture the local market.

Contents Chapter-1 :- Introduction Of Food & beverage industry .............................................................................. 1

BAKERY INDUSTRY .................................................................................................................................... 2

BREAD ....................................................................................................................................................... 3

BRITANNIA DAILY FRESH BREAD ............................................................................................................... 4

INDIAN BREAD HISTORY ............................................................................................................................ 5

EMERGENCE OF THE HEALTHY PRODUCT ................................................................................................. 6

Chapter-2 :-Overview Of Britannia Industry Limited .................................................................................... 7

BOARD OF DIRECTORS .............................................................................................................................. 9

MANAGEMENT TEAM ............................................................................................................................. 10

MILESTONES ............................................................................................................................................ 11

Chapter-3 :-SWOT Analysis ......................................................................................................................... 16

Chapter-4 :-Report on Training program for authorized wholesaler Karnal Bread In Delhi ....................... 18

A. Delhi Training ...................................................................................................................................... 19

a. Cost ............................................................................................................................................. 19

b. ROI (Return on investment) ........................................................................................................ 20

c. Margins ....................................................................................................................................... 20

d. DRCP (Daily route coverage plan) ............................................................................................... 21

f. Problems or Issues ...................................................................................................................... 23

g. Availability of competitors bread with Britannia bread, at visited outlets ................................. 23

Chapter-5 :-Report on “A study on the distribution channel of Britannia bread in Jaipur city” ................ 24

B. Jaipur City ............................................................................................................................................ 25

RESEARCH METHODOLOGY .................................................................................................................... 25

Chapter-6 :-Data Analysis............................................................................................................................ 28

a. Comparative consumption with Competitors ............................................................................ 29

b. Margins for distributors .............................................................................................................. 30

c. Margins for Retailers ................................................................................................................... 30

d. Distribution Structure ................................................................................................................. 31

e. Individual covered area for supply with indent .......................................................................... 32

f. Existing Infrastructure ................................................................................................................. 33

g. ROI (return on investment) ......................................................................................................... 34

h. Problems or Issues ...................................................................................................................... 34

i. Efficiency of Distributors ............................................................................................................. 35

j. Availability of competitors bread with Britannia bread, at visited outlets ................................. 36

k. Influencing factors for demand ................................................................................................... 36

l. Performance evaluation.............................................................................................................. 37

n. Visibility and display .................................................................................................................... 38

o. Comparative demand of 630 gm (stopped) & 600 gm healthy slice S.K.U. ................................ 39

p. Demand variation before and after price increase (Total of 22 days) ........................................ 40

Competitor’s Strategy ............................................................................................................................. 40

Chapter-7 :-Comparative study Between Britannia Bread & biscuit distribution channel ......................... 41

Scope of the Study ...................................................................................................................................... 44

Conclusion ................................................................................................................................................... 44

Suggestions ................................................................................................................................................. 45

Limitations of study .................................................................................................................................... 48

Learning ...................................................................................................................................................... 49

Value Additions ........................................................................................................................................... 50

Bibliography ................................................................................................................................................ 51

Annexure ..................................................................................................................................................... 52

Annexure-1.............................................................................................................................................. 52

Annexure-2.............................................................................................................................................. 54

Annexure-3.............................................................................................................................................. 56

Annexure-4.............................................................................................................................................. 58

List of Graphs

DELHI Graph 1 (R.O.I) ............................................................................................................................... 20

Graph 2(Margins of Retailers) ..................................................................................................................... 20

Graph 3 (Problem or Issues) ....................................................................................................................... 23

Graph 4 (Availability of competitors bread with Britannia bread, at visited outlets) ................................ 23

JAIPUR Graph 5 (Total average tray consumption) .................................................................................. 29

Graph 6 (Margin of distributor) .................................................................................................................. 30

Graph 7 (R.O.I.) ........................................................................................................................................... 34

Graph 8 (Number of issues/problems) ....................................................................................................... 34

Graph 9 (Efficiency of distributors) ............................................................................................................. 35

Graph 10 (Availability of competitors bread with Britannia bread, at visited outlets) .............................. 36

Graph 11 (Influencing factor for demand)) ................................................................................................. 36

Graph 12 (S.K.U. in demand/most demanded S.K.U.) ................................................................................ 38

Graph 13 (Comparative demand of 630 gm & 600 gm healthy slice S.K.U.) .............................................. 39

Graph 14 (Demand variation before and after price increase) .................................................................. 40

List of Tables

Table 1 (Individual covered area for supply with detailes))........................................................................ 32

Table 2 (Performance Evaluation) .............................................................................................................. 37

Table 3 (Comparative analysis of Britannia Biscuit and Bread)) ................................................................. 42

Table 4 (Quality related Problems and Issues) ........................................................................................... 45

List of Smart Art

Smart Art 1 (SWOT Analysis) ....................................................................................................................... 17

Smart Art 2 (Distribution Structure) ........................................................................................................... 31

Smart Art 3 (Existing Infrastructure) ........................................................................................................... 33

1

Chapter-1 :- Introduction Of

Food & beverage industry

2

The multi-billion food and beverage industry comprises several markets including bakery

products such as bread, biscuits etc., milk and dairy products, beverages such as tea, coffee,

juices, bottled water etc., snack food, chocolates, etc. beverage, confectionery, processed foods

and others. India's Food and Beverage industry is valued at Rs. 3584 billion. India produces

above 600 million tons of food products every year and is one of the major producers of food in

the world.

The food and beverage industry registered an expected growth rate of 11-12% in 2011-12

(Money Control). With increase in disposable income of consumers, growing awareness among

consumers about health products, rapid urbanization, and increasing popularity of convenience

foods, food and beverage sector is expected to grow at a high rate. This sector holds a huge

potential to grow because of the increase in advertisement spending, awareness campaign about

products in urban as well as rural areas, and large scale transformation.

The food and beverage industry is primarily driven by consumer health trends. Presently, the

food and beverage industry is in a dynamic phase, marked by a high degree of competition. As

product development within the food and beverage market moves towards a focus on health and

nutrition, the growth and development of food manufacturers in the market depends on having

prudent strategies in place, which can be applied globally. In effect, this has created a highly

competitive market place, which fosters growth of participants with a clear vision of "growing

with their customers."

The major players in the "Food and Beverage" Industry is: Heinz, Mars, Marico, Conagra, Pepsi,

HLL, Pillsbury, Nestlé, Amul, ITC, Dabur, Britannia, Cadbury, Smith Kline Beecham, The

Surya Food and Agro Private Ltd.

BAKERY INDUSTRY

Bakery industry in India is probably the largest among the processed food industries, production

of which has been increasing steadily in the country. Bakery products once considered as sick

man’s diet have now become essential food items of the vast majority of population. The two

major bakery industries, viz., bread and biscuit account for about 82% of the total bakery

products. The annual production of bakery products which includes bread, biscuits, pastries,

cakes, buns, Rusk, etc., most of which are in the unorganized sector, is estimated to be in excess

of 3 million tones. The production of bread and biscuits in the country both in the organized and

3

unorganized sectors is estimated to be around 1.5 million tons and 1.1 million tons respectively.

Of the total production of bread and biscuits, about 35% is produced in the organized sector and

the remaining is manufactured in the unorganized sector. Indian Bakery sector is indicating

significant growth both in terms of volumes and customer base. The sector, which is estimated at

Rs 3,604.13 crore (Money control), is currently registering a 40% growth according to industry

sources.

Though bakery industry in India has been in existence since long, real fillip came only in the

later part of 20th

century. The contributing factors were urbanization, resulting in increased

demand for ready to eat products at reasonable costs etc. With the quick food culture catching

up, demand for bakery products has increased tremendously. The bakery industry or for the

matter all the businesses catering to baker are witnessing a sort of revolution tremendously.

Some of the well-known and most frequented bakeries in the country are Sweet Chariot, Modern

Bakery, Daily Bread in Bangalore, Monogynies, Birdie's, Croissants in the west, and in the north

and eastern parts of the country, there are quite a few big players too.

BREAD

Dough before first rising Dough after first rising Dough after proofing in tin, ready to bake Pre-sliced bread

Bread is the cheapest and basic instant food available for consumption. Though bread is not a

staple food in the country, its consumption has increased over the years. In India it is still a

secondary staple food when compared to chapatti, puri or rice. The different types of bread

available are White bread, Whole meal or whole wheat bread, mixed grain bread, Kibbled wheat

and cracked wheat bread, Fiber-increased white breads, Rye bread etc.

BIL Significant introduce new in Bread and Cake include Sweet Bread, Milk Bread, Healthy

Slice Bread, Premium Sandwich variants and Fruit chunk cakes, and provided significant

impetus to the Bread and Cake business.

http://en.wikipedia.org/wiki/File:Breaddough1.jpg

http://en.wikipedia.org/wiki/File:Breaddough2.jpg

http://en.wikipedia.org/wiki/File:Risen_bread_dough_in_tin.jpg

http://en.wikipedia.org/wiki/File:Brood-2.png

4

BRITANNIA DAILY FRESH BREAD

Till 1958, there were no breads in the organized sector and bread

consumption was a habit typified by the British. Then, a mechanized bread

unit was set up in Delhi with the name "Delbis" which produced sliced

bread and packed it under the Britannia name. Thus, Britannia was not only

the pioneer, but also inculcated in the people of Delhi the habit of eating

white sliced bread.

The Mumbai unit came up in 1963, and there again Britannia was the first branded bread in the

city. From a company offering 2 packs - the 400gm and the 800gm plain white sliced bread -

Britannia has evolved into a company offering 22 packs, catering to a variety of taste and price

segments in the bread consuming market. The last couple of years also saw the introduction of

Whole Wheat Bread as a part of "Eat Healthy, Think Better" credo.

Britannia Daily Fresh Bread, which finds its way to over 6 lakh households daily, is the mainstay

of the company’s non-biscuit business at present. Britannia hopes to drive this emerging business

through the exploding modern trade and has already gained access to easy Day, Metro, Carfour,

Trinethra and Fabmall etc. for its breads. Britannia is widely recognized as an innovative

marketer.

In present time Britannia Industry Limited made following S.K.U.:-

1. Jumbo value long bread 700gm

2. Premium bake tuti fruity bread 200g

3. Premium bake fruit bun 170g

4. Daily fresh whole wheat bread 400 g

5. Premium bake vitamin enriched 400g sndwh

6. Premium bake pav 300gm

7. Daily family large bread 400gm

8. Popular bread 400 gm

9. Premium bake pav 400gm

10. Popular bread 200 gm

11. Daily fresh family slice 500 gm

5

12. Daily family long bead 800gm

13. Daily family compact bread 400gm

14. Premium bake vit. Enriched 400g long

15. Daily family compact bread 200gm

16. Jumbo value large bread 300gm

17. Daily fresh whole wheat bread 380gm

18. Daily fresh family slice 300gm

19. Daily fresh family slice 200gm

20. Jumbo value compact bread 200gm

21. Healthy slice large bread 600gm

22. Jumbo value large bread 200gm

23. Britannia multigrain bread 400gm

24. Britannia multifiber bread 400gm

25. Britannia honey & oat bread 400gm

26. Britannia 100% whole wheat bread 400gm

INDIAN BREAD HISTORY

The Bread industry is low-tech and low margin industry. In 1977, the Government of India had

reserved bread industry for small scale industries (SSI). The then existing two large units viz.

Britannia Industries Limited and Modern Food Industries Ltd. Were however allowed continuing

on the basis of their respective existing installed capacity.

35 % of the total production comes from the small scale

sector with about 1500-1800 units in operation. The

organized sector accounts for 20% of the total production.

The balance production comes from the unorganized

traditional bakery units operating under cottage tiny sector

numbering approximately 65000 units in the country. BIL

& MFIL are having a market share of 10-12% and 7-8%

respectively. Apart from big players like BIL & MFIL regional players such as Spencer’s in

South India, Vibbs in Maharashtra, Harvest Gold and Perfect in Delhi etc.

http://en.wikipedia.org/wiki/File:Breadindia.jpg

6

Bread being consumed by wide cross-section of the society, the marketing of bread is based on

strong retail distribution networks, which service the customers.

As bread industry is a low margin business, cost control is crucial in sustaining profitability in

the long run.

EMERGENCE OF THE HEALTHY PRODUCT

Along with an increase in demand for the bakery products, the

awareness about health is also on the rise. Bakeries are making

sure that they come out with healthier products. “The awareness

of the virtues of products like whole grain, multi grain, Honey

& oat, Multi fiber and such other Yoga health products are

growing in our country. An increase in demand and health

awareness results the demand for product like Yoga product (Multi Fiber, Multi Grain, Honey

& Oat, Whole wheat etc.).

7

Chapter-2 :-Overview Of

Britannia Industry Limited

8

INTRODUCTION TO BRITANNIA INDUSTRIES

The story of one of India's favorite 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 mechanized 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 Indianans 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 cores 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 pre-eminent food

brand of the country. It was equally recognized 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.

9

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 populations 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 savor the results, happily ever after.

BOARD OF DIRECTORS

Name Designation

Mr. Nusli Neville Wadia Chairman

Ms. Vinita Bali Managing Director

Mr. A.K.Hirjee Director

Dr. Ajai Puri Director

Mr. Avijit Deb Director

Mr. Jeh N Wadia Director

Mr. Keki Dadiseth Director

Mr. Nasser Munjee Director

Mr. Ness Nusli Wadia Director

Mr. Nimesh N Kampani Director

Mr. Pratap Khanna Director

Mr. S.S.Kelkar Director

Dr. Vijay L. Kelkar Director

10

MANAGEMENT TEAM

ANURADHA NARASIMHAN - Category Director - Health & Wellness

B. PRASHANTH - Head of R&D

Dr. K.N. SHASHIKANTH - Head - Corporate Quality

JITENDRA MAHAJAN - Head – Procurement

KAILASH H. KAKANI - General Manager - Manufacturing Operations

N R SELVARAJ - General Manager – Quality

N. VENKATARAMAN - General Manager – Commercial

P. GOVINDAN - Company Secretary & Head of Legal

R. ANAND - Business Operations Director

R K AGARWAL - General Manager - Projects

SHALINI DEGAN - Category Director - Delight & Lifestyle

SHRIDHAR PANSHIKAR - National Sales Director

SUJIT GUHA - General Manager – Replenishment

VALIVETI V PADMANABHAM - Head - Corporate IT

http://www.britannia.co.in/managementteam_profiles.htm






11

MILESTONES

1892 The Genesis - Britannia established with an investment of Rs. 295 in Kolkata

1910 Advent of electricity sees operations mechanized

1921 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 Public issue - Indian shareholding crosses 60%

1979 Re-christened Britannia Industries Ltd. (BIL)

1983 Sales cross Rs.100 crore

1989 The Executive Office relocated to Bangalore

1992 BIL celebrates its Platinum Jubilee

1993 Wadia Group acquires stake in ABIL, UK and becomes an equal partner with

Group Danone in BIL

1994 Volumes cross 1, 00,000 tons of biscuits

1997 Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to new mission:

'Make every third Indian a Britannia consumer'

12

BIL enters the dairy products market

1999 "Britannia Khao World Cup Jao" - a major success! Profit up by 37%

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

2002 BIL launches joint venture with Fonterra, the world's second largest dairy

company

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 WordStar, Asia star and India star 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 'Super brand'

Volumes cross 3, 00,000 tons of biscuits

Good Day adds a new variant - Coconut - in its range

13

2005 Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular chant!

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-Fiber Digestive biscuits in an international

large sized biscuit pack.

Britannia acquires 51% stake in Bangalore-based bakery items 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 Sugar Out range introduced - 1st of its kind of biscuits to

be launched in India with "No Added Sugar" (Variants - Chocolate Cream,

Orange Cream, and Lifetime)

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 'Marigold'.

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!!

14

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 flavors 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 Chocó chips 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.

15

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 Business

world.

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 Chocó 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.

16

Chapter-3 :-SWOT Analysis

17

SWOT ANALYSIS OF BRITANNIA BREAD

Although we all know that Britannia Industry Ltd. is a superior company. But if we really want

to know about any company’s current position as well as future scope then the best thing was

SWOT analysis of that company. SWOT stands for strength, weakness, opportunity and threat.

Strength and weakness are the internal qualities of any company which it already consists and on

the basis of these internal qualities what are the future scope in way of positive or negative

known as opportunity and threat which affected by external factor like PESTEL (political,

economical, social, technical, environmental and legal factors).

So on the basis of all above mention point, in my opinion following diagram is show SWOT of

Britannia Ind. Ltd.

Smart Art 1 (SWOT Analysis)

STRENGTHS

1. Brand Name

2. Distribution Structure

3. Number of S.K.U. of Bread

WEAKNESS

1. Less awareness

2. Irregular Quality Mentainence

3. lack of meeting area specific demand

4. Ignorance of competitor's strategy (Margins & Replacement)

OPPORTUNITY

1. Bakery industry growing at 40% per annum

2. All major firms are nowsupplying fast food at work spot

3. Bread is now becoming staple food

4. Now people are more health conceious so it will good for health products in Bread.

THREATS

1. Unorganised Bakery firms captured the market

2. Raw material cost increasing due to inflation

3. Loyalty of customer decrease

4. Distributor rehabilitated to competitor's product

18

Chapter-4 :-Report on

Training program for

authorized wholesaler

Karnal Bread In Delhi

(7/5/2012-11/5/2012)

19

A. Delhi Training

Supply system:-

I found that our supply system was good because all distributors utilize their resources in

optimum manner. They used effective and economic route for distribution but the demand on the

route was not according the capacity of distributor’s vehicles. Distributors faced different

problems like high rate of replacement, quality related issues etc. Due to these problems

satisfaction level of them was decreased.

The good point which I found that all retail outlets have good potential for product consumption

but they all want following things:-

Improvement in Quality of product

Reduce the fungus problem in bread before expiry date

Packaging should be better etc.

a. Cost :-

During this training program I found that the cost was high. As distributors told me reasons of

high cost were fuel charges, maintenance of vehicle, high replacement etc. And the reasons

which I found for replacement was as following:-

Distributors distribute their old stock on next day, due to this old dated product supplies

issues are increase.

During distribution, packaging was damaged and distributors distribute it with the help of

transparent tape so in my opinion due to air and temperature fungus problem is generated.

The quality of bread from production department is not fine.

The shape of bread was not good in some boxes or packets.

20

b. ROI (Return on investment) :-

Return on investment is positive in my calculation on the basis of given data or facts by the

distributers of different route. This shows that each distributor got profit on their investment.

c. Margins rate

4.225%

2.581% 2.924%2.250%

0.000%

1.000%

2.000%

3.000%

4.000%

5.000%

Monu Raju Teenu Sonu

Distributors Name

ROI (%)

ROI (%)

2

1

2.25

2.6

2.25

1.5

0.75

1.6

2

1.51.5

0.5

1.5 1.5 1.5

0

0.5

1

1.5

2

2.5

3

Britannia Harvest Perfect Milkomen English oven (crimica)

Margins for 750-780 gm bread Margins for Brown bread Margins for small bread

DELHI Graph 1 (R.O.I)

Graph 2(Margins of Retailers)

21

Margin rate of Britannia is good with respect of other competitor especially with Harvest so due

to this reason most of outlets owners want to contain Britannia bread. And the ratio of outlets

was also in favor of us.

d. DRCP (Daily route coverage plan)

In my opinion the DRCP is good for each route on the basis of time of opening retail outlets. The

best way which I found is Janakpuri route, because the coverage route was very sequential and

economic.

Day-1

Day-2

Tilak Nagar

(Pick up point)

Tagor Garden Rajori Garden

Tilak Nagar Subhash

Nagar

Krishna Park

(Tilak Nagar)

Ganesh Nagar

(Tilak Nagar)

Krishna Puri

(Tilak Nagar)

Janak Puri

Jail Road Fatah Nagar

Subhash Nagar

Subhash Nagar

Press Colony

Hari Nagar

Tilak Nagar

(Pick up point)

22

Day-3

Day-4

Tilak Nagar

(Pick up point)

Hari Nagar Subhash Nagar

Tilak Nagar Ashok Nagar Rajori Garden

Tagore Garden Raghuveer Nagar

Chokhandi

Tilak Nagar Fatah Nagar Subhash Nagar

Tilak Nagar

(Pick up

point)

Janakpuri (C-

5A)

Janakpuri (C-

2A)

Janakpuri (C-

3A)

Janakpuri (C-

5A)

Janakpuri(C-

4E)

Janakpuri (C-

1)

Asalatpur ,Janakpuri

Janakpuri (A-

1B)

Narang colony Janakpuri

Chander nagar (A-2B & 3B,Janakpuri

Janta flate (A-5A), Janakpuri

23

e. Visibility and display:-

The visibility and display was good almost on each retail outlet but I found that on some outlets

we can improve the visibility. But when I Respondent=retail outlet owner for increase visibility

then most of them ask for rack to display our product. Because they don’t have enough place to

display our product.

f. Problems or Issues

g. Availability of competitors bread with Britannia bread, at visited outlets

13%24%

2% 6% 4% 4% 6%

76%

0%

20%

40%

60%

80%

Fungus Quality Packaging Old date Supply problem

Customer care not

responding

Bread shape No problem

Numbers of issues

%

108 106

19

2 7

0

20

40

60

80

100

120

Britannia Harvest Perfect Milkoman English oven

No. of outlet

No. of outlet

Graph 3 (Problem or Issues)

Graph 4 (Availability of competitors bread with Britannia bread, at visited outlets)

24

Chapter-5 :-Report on “A

study on the distribution

channel of Britannia bread

in Jaipur city”

(13/5/2012-07/7/2012)

25

B. Jaipur City

RESEARCH METHODOLOGY

1. Title of the Study:- “A study on the distribution channel of Britannia bread in Jaipur

city”

2. Duration of the project work:- 2 Months (7/5/2012 to 7/7/2012)

3. Objectives of the study:

a) Primary objective

The primary objective of the project was to study the distribution channel of

Britannia bread in Jaipur city.

b) Secondary objective

A detailed analysis of “Daily Fresh Bread” including customer opinions regarding

availability, quality for the same.

To know the satisfaction level of the retailers who deal with daily fresh bread.

(Satisfaction level in terms of service provided to the retailers, quality of the

product and provided margin)

4. Research Design

A research design is the frame work for a study, used as a guide to collect and

analyzed data. A research design ensures that, the study will be relevant to the

problem and, it will use economical procedure.

a) The type of the research: -

Exploratory Research, An exploratory research is conducted to gain ideas and

insights into the problem. It is conducted to increase the marketer’s familiarity

with the problem and clarify concepts. An exploratory research is appropriate

when very little is known about the problem. Here the purpose of the study was to

find out the factors associate with distribution channel as well as variation in sale

of bread; hence an exploratory design was selected.

26

b) Sample Design: - (Convenience based Sampling)

i) It is basically a form of convenience sampling in which the population elements

are purposely selected based on convenience approach.

c) Sampling Unit: -

The elements available for selection during the sampling process known as

Sample Unit. (a) Retailers & distributors (b) customers as sample unit for my

research.

d) Sample size: -

Initially around 558 outlets were visited. Out of them 100 were identified where

the survey was conducted. These 100 outlets were selected out of 558 shops on

the basis of following characteristics :-

Product availability

Location

Outlet ambience

Relative products

Clientele

e) Second survey was conducted among the end consumers with sample size of 100

through Questionnaire.

f) Third survey was conducted among distributors/dealers through Personal

Interview.

.

5. Location: The research was done in the area of Jaipur City.

6. Data collection method

[

a) Secondary data

The purpose of collection of secondary data was to gain more knowledge about

the project and to have a certain guideline for the project to be carried out

27

properly. For the study, the secondary data was collected from the existing data

regarding sales and distribution in Jaipur city.

b) Primary data

The primary data collected, while keeping certain important point into

consideration, which would help the project to achieve the desired result, which

were expected from the survey like:

What should people be questioned?

What should be the mode of administration of the questionnaire?

What is to be measured?

Can objective answer be obtained by asking the people?

Should the purpose of study be made available to the respondent?

The main objective of collecting primary data is to probe the attitude and opinion of

the respondents. The technique which was used for study was the communication

technique, in which survey was done by Questionnaire from customers and retailers

(Annexure-2&3) and by Personal Interview (Annexure-4) with distributors. These

techniques was decided as it would help to obtain accurate data from

distributors/dealers, retailers and customers.

The following choices were made while collecting primary data

i. Degree of structure : Structured

ii. Degree of disguise : Undisguised

iii. Method of Administration : Personal Interview & Questionnaire

28

Chapter-6 :-Data Analysis

29

Supply system:-

In Jaipur city i found that our supply system is not so good because all distributors not utilized

their resources in optimum manner. Even though they used effective and economic route for

distribution but most of the distributor were engage with other brands and products, so they were

not focus on Britannia bread. Some other reasons like high rate of replacement, quality related

issues etc. are main factors behind low satisfaction level and loyalty of them.

The good point which I found that all retail outlets have good potential for product consumption

but they all want following things:-

• Improvement in Quality of product

• Reduce the problem of old dated product supply

• Demand for some other S.K.U. according regional factors

• Margins should be equal to other competitors

• Packaging should be better etc.

a. Comparative consumption with Competitors

What is the demand of different brand products into market, in number of tray consumption?

(Respondent=distributor) Some other references feedback like super stockiest and retailers

also include in this data regarding tray consumption.

JAIPUR Graph 5 (Total average tray consumption)

5.94%

11.88%

23.76%

9.90%

26.73%

6.93%2.97%

6.93%4.95%

Total Average Tray consumption (%)

Britannia Bread

Harvest

Laxmi

Kalori

Saras

Capital Gold

Modern

Nimbus

30

b. Margins for distributors

What are the margins companies gives you and you give to retailers (Respondent=distributor)

c. Margins for Retailers

2.25

5

7

5.5

7.5

5

2

3.5

4.75

3.5

4.55

3

4 4 4 4

2

44.5 4.5 4.5

2.5

1.5

3 3 3

1 1 1 1

0

1

2

3

4

5

6

7

8

Britannia Harvest Laxmi Saras Nimbus calori

Margins of Retailers

POP630 POP 400 POP 250 WWB 400 P0P 200 POP 100

1.05

2.3 2.25

3 3

2.5

0.9

2.25

1.25

2.2 2.252.5

0.45

1

0.5

1

0.5

1

0.52

1

1.5 1.5 1.5 1.51.25

0.5

2

1.5 1.5

2

0.751 1 1 1

0

0.5

1

1.5

2

2.5

3

3.5

Britannia Harvest Laxmi Saras Nimbus calori

Margins of Distributors

POP630 POP 400 POP 250 WWB 400 P0P 200 POP 100

Graph 6 (Margin of distributor)

31

Margin rate of Britannia is not good with respect of other competitor. And the difference

between margins which given by Britannia industries ltd. and other competitors were very high

as above graphs shows. Due to this big gape of margins most of outlets owners did not want to

contain Britannia bread. Even if they were ready to do this, distributors were not happy to supply

BIL bread.

d. Distribution Structure

What is stock flow from super stockiest to you & from you to retailers? (Respondent=distributor)

The distribution structure or daily route plan of Britannia bread supply was very economical and

efficient. Because above mention route is decided on the basis of transportation problem concept

where maximum points/beats were covered by TATA ACE on the most economical way. But

due to limited capacity of supply vehicle the supply was completed in two rounds so due to this

the fuel consumption as well as time consumption was increased and it increased the operating

cost of super stockiest.

Britannia industries ltd. also face the problem of high operating cost because the transportation

vehicle not utilize to supply product from factory to Jaipur according it’s capacity, due to less

indent from Jaipur city.

ConsumersDiffrent area's consumer

Retail OutletsTotal no. of Retail outlets-558

DistributorPath-2Mansrover, Vashali, Murlipura, Vidhyadhar Nagar

Distributor Path-1Mansrover, Agrawal farm, Triveni Nagar, Raja Park, Sodala

Super stockist/WholesalerMansrover, Jaipur

FactorySubrawal food nathupur, kundali

Smart Art 2 (Distribution Structure)

32

e. Individual covered area for supply with indent

How many outlets you cover? (Respondent=distributor)

Table 1 (Individual covered area for supply with detailes))

S.N. Name of

Distributor

or W/s

Contact no. No. of

Beat

Market No. of

Covered

Outlet

Indent

(Avg.)

Mode of di

Stribution

1 Maateswari

Agency

9672319809 2 Agrawal

farm,

Mansrover

67 19 Bike, Bicycle

2 Niraj Agency 9001494966 3 Vaishali,

Khatipura,

Nirman

Nagar

128 26 Two Tata

Ace, Bicycle

3 Bansal

Agency

9694520213 2 Nirman

Nagar,

Mahesh

Nagar

44 17 Maruti Van,

Luna

4 Gaurav

Agency

9929197560 1 Mansrover 23 8 Bike

5 Shyam

Agency

8947857573 3 Sodala, Devi

Nagar

55 20 Auto, Riksha,

Bicycle

6 Shiv Charan 9887343121 1 Murlipura,

Vidhyadhar

Nagar

58 27 Bike

7 Banti 9549287237 2 Vidhyadhar

Nagar,

Ambabari

41 18 Two Bike

8 Sandeep Pal 9782630233 3 Raja Park,

janta colony

142 46 Three

Bicycle

Total (Including 49 new added outlets) 558 181 17

33

f. Existing Infrastructure

(Respondent=distributor)

a. How many hawkers or distributors do you have?

b. What are the average working hours for a hawkers or distributors?

c. Which mode of supply (Vehicle) do you have?

d. How you decided the route plan of distribution?

On the basis of communication with distributor through personal interview above information

regarding existing infrastructure (man power, resources, locations and no. of outlets) available

which shows that still a huge area of Jaipur is untouched so we can focus on it. But for this man

force is required in Jaipur with some other resources which we can extend with the help of super

stockiest of Jaipur.

It also gives insights of current position of market for Britannia bread and reflects the

performance of each individual.

Man Power

1 Super stockist

0 T.S.I

1 P.S.M.

17 Beat

Resources

1 Tata Ace (Super stockist)

2 Byke (P.S.M.)

6 Bicycle

5 Byke

2 Tata Ace

3 Auto Riksha

1 Van, 1 Riksha & 1 Luna

Locations

1 Mansrover 8 Devi Nagar

2 Agrawal farm 9 Bandhu Nagar

3 Vaishali Nagar 10 Murlipura

4 Khatipura 11 Vidhyadhar Nagar

5 Nirman Nagar 12 Amba bari

6 Mahesh Nagar 13 Raja Park, Adarsh

7 sodala 14 Janta Colony

No. of Outlets

Mansrover, Agrawal farm -90

Vaishali Nagar, Khatipura -98

Nirman, Mahesh Nagar - 74

Sodala, Devi nagar -55

Bandhu Nagar, Murlipura -58

Vidhyadhar Nagar, Amba bari-41

Raja Park, janta Colony etc. - 142

Existing

Infrastructure

Smart Art 3 (Existing Infrastructure)

34

g. ROI (return on investment)

a. What kind of expenses you spent during bread supply? (Respondent=distributor)

b. What is a salary structure of you or your hawkers?

Return on investment is positive in my calculation on the basis of given data or facts by the

distributers of different route mention in above Graph. This shows that each distributor got profit

on their investment.

h. Problems or Issues

What is the reason behind having multiple brands? (Respondent=distributor)

5.052%

2.428% 1.778% 1.897%

8.171%

3.982%

0.000%2.000%4.000%6.000%8.000%

10.000%

Shivcharan ji (Murlipura)

Bunty (Vidhyadhar

Nagar)

Neeraj(Vashali Nagar)

Sandeep(Rajapark)

Gaurav(Mansrover)

Anand(Mansrover)

Distributors Name with location

ROI (%)

ROI (%)

3%

72%

22%32%

7% 4% 8%

28%

0%10%20%30%40%50%60%70%80%

Fungus Quality Packaging Old date Supply problem

Customer care not

responding

Bread shape No problem

Numbers of issues (in %)

%

Graph 7 (R.O.I.)

Graph 8 (Number of issues/problems)

35

When I discussed above mentioned question with distributors then the answers came with lots of

issues and problems. And these same problems were mention by retailers as well as by some

customer into questionnaire. And they all want from Britannia to reduce these problems. As we

can easily understand from above graph, that the problem of poor quality is very high in %. So to

increase the sale of bread BIL should be focus on these issues. Although during my SIP the

quality was improved but it was not regular. Due to this loyalty and satisfaction of consumers

were very low for bread.

i. Efficiency of Distributors

What is the maximum capacity of sale you have? (Respondent=distributors)

Graph 9 (Efficiency of distributors)

When I asked above mention question to all distributors then they all said that they have good

selling capacity of Britannia bread. If Britannia solve all the issues especially rapper and quality

improvement they should automatically increase its sale. Above mention graph show the

comparative representation of demand or indent of Britannia bread between estimated capacity

and present order based data. (On the basis of given data by all distributors)

3035

100

80

90

25

10

24

50

20

0

20

40

60

80

100

120

Murlipura Vidhyadhar Nagar Vashali Nagar Rajapark Mansrover

Indent order in number of tray

Maximum capacity Right now

36

j. Availability of competitors bread with Britannia bread, at visited outlets

vki fdl dEiuh dh cszM j[krs gS\ la[;k ds vk/kkj ij jSad iznf’kZr djsaA (Respondent=retailers)

When I visited retail outlets during my survey then I found that retailers had more than one brand

of bread on their shop. And reason behind it as above mention margin and some other issues. So

on the basis of questionnaire and presence of different brand the graphical representation shows

the number of outlets which have different brands.

k. Influencing factors for demand

fczVsfu;k ds jSij ,oe~ iSdsftax ds ckjs es vkids D;k fopkj gS\

,d czsM dks vPNk dgus dk vk/kkj gSa\

cszM dh fMek.M gsrq vkidks izHkkfor djus okyk eq[; dkj.k gSaA (Respondent=retailers & customers)

558

106

296360

195

78114

0

100

200

300

400

500

600

Britannia Harvest Saras Laxmi kalori Nimbus Capital gold

No. of outlet (From 558 outlets)

No. of outlet (From 558 outlets)

Graph 10 (Availability of competitors bread with Britannia bread, at visited outlets)

36%

64%51%

0%

20%

40%

60%

80%

Margin Quality old packaging in red color

Influencing factors (in %)

Influencing factors (in %)

Graph 11 (Influencing factor for demand))

37

On the basis of feedback which I got from all my respondents in research of above mentioned

questions, I concluded that majorly three factors mentioned in graph play vital role in growth of

sales. If Britannia Industries Limited focused on these three points, according to me on the basis

of analysis sale will increase with almost 13-16%. Distributors told me that the old packaging

which came in red color was more attractive and effective, so they actually asked for change new

packaging in older one.

l. Performance evaluation

(On instruction of Mr. Kamal Arya, Company guide)

fczVsfu;k dEiuh ds izfrfuf/k 1 ekg esa fdruh ckj nqdku dh foftV djrs gS\

izfrfuf/k }kjk vkidh leL;kvks dk lek/kku fd;k tkrk gSA (Respondent=retailers & distributors)

Table 2 (Performance Evaluation)

On the basis of observation and feedback which was taken by respondents regarding the

performance of channel members.

Performance Evaluation

Parameters Mr. Rajendra

Khandelwal (S.S.)

Mr. Bipin

Gupta (T.S.I.)

Mr. Abhishek

(P.S.M.)

Mr. Muksh

(P.S.M.)

Brand & Product

awareness 4 4 4 3

Presentation 4 4 4 2

Communication 4 3 3 2

Stress handling 4 4 4 2

Critical Decision 4 4 4 2

Behavior 4 5 4 3

Convincing skill 5 4 4 3

Interpersonal skills 4 5 4 3

IT knowledge 4 3 4 2

Total 37 36 35 22

Five scale rating:- 5- Excellent , 4 - Good , 3 - Average, 2 - Poor,1 - Very bad

38

m. S.K.U. in demand / Most demanded SKU

ekdsZV esa lokZf/kd ekax okys ,l-ds-;w- ds uke ij dk fu’kku yxk;sA (Respondent=retailers &

costumer)

Graph 12 (S.K.U. in demand/most demanded S.K.U.)

Regional factors always impact the demand of a product, similarly in Jaipur some specific

indents are in good demand as taken feedback from retailers, distributors as well as customers. If

Britannia Industries Limited will provide above mention S.K.U in Jaipur city then as market

trend says our sale would be increase.

n. Visibility and display

The visibility and display was fine on some retail outlet, but I found that on other outlets we can

improve the visibility. But when I asked to outlet owner for increase visibility and display then

most of them ask for stand to display our product. Because they don’t have enough place to

display our product. So to increase the visibility at point of parity at shop we should provide

them stand or other promotional products. And to motivate them to increase visibility some

schemes should also be there.

30

5

10

2 3

8

0

5

10

15

20

25

30

35

Pop 630gm Pop 400 gm Pop 300 gm 100 gm Pav 9 piece one pc. Ban

Estimated demand in tons(Based on competitor product demand)

Estimated demand in tons (Based on competitor product demand)

39

o. Comparative demand of 630 gm (stopped) & 600 gm healthy slice S.K.U.

Graph 13 (Comparative demand of 630 gm & 600 gm healthy slice S.K.U.)

The main reason behind this huge difference (before and after stopped 630gm S.K.U.) in demand

of both S.K.U’s is mainly the packaging. In Jaipur city the mentality of people is different in

respect of other state. They actually ask for sealing packaging of bread in respect of other

packaging which we use in Healthy Slice 600 gm. And excuses which I heard through retailers

are so funny. They said that customer think the number of slices in bread packet are manipulated

by retailers and then again pack it.

So all distributors as well as retailers are demand for sealing packaging as well as the shape

modification of slices.

Other factor which also associates with the sales variation was packet M.R.P. Actually retailers

said that due to M.R.P of Rs. 22/- they faced problem of change. So they want that company

provide all S.K.U. in round figure amount.

98

43

0

20

40

60

80

100

120

Britannia

Average Demand of S.K.U. (in No. of Tray)

Popular 630 gm Healthy slice 600 gm

40

p. Demand variation before and after price increase (Total of 22 days)

Graph 14 (Demand variation before and after price increase)

As interpreted through the graph that the there is a inverse relation between the price and the

demand of the Britannia bread. The new prices for the bread come in the effect from dated

7/6/2012. The blue bar show the total of indent from 16/5/2012 to 6/6/2012 and the red bar

shows the total of indent from 7/6/2012 to 28/6/2012. So we can easily understand that the

impact of price increasing was affecting us negatively. And reason behind it was margin of

retailers as well as distributors, which was not increase accordingly. And other competitors were

not change their prices.

Competitor’s Strategy

Mainly our biggest competitors over here are local players like Saras, Laxmi etc. and they

captured huge market. In my opinion the reasons behind their good performance are as

followings:-

1. They provide fresh bread to dealers or retails.

2. They provide all those S.K.U. which required in territory.

3. They supply bread on time according dealer requirements.

4. They provide 100% replacement.

5. They also provide free wrappers to dealer to compensate damage packaging.

6. They clear all accounts of dealer on time.

4432

3433

0

1000

2000

3000

4000

5000

Demand/Indent of bread

Demand variatiion for total of 22 days (before & after price increased in No. of

trays)

Before After

41

Chapter-7 :-Comparative

study Between Britannia

Bread & biscuit distribution

channel

42

Build upon the basis of personal interview responses of Mr. Manish (T.S.I., biscuit

department)

Table 3 (Comparative analysis of Britannia Biscuit and Bread))

Britannia Industries Limited

Biscuit Bread

Total Number of S.K.U. 288 26

In Jaipur 144 12

Distribution Channel 3 Channel 5 Channel

Indent Order Before 24 hours Before 48 hours

Supply Time 11a.m to 5 p.m. 5 a.m. to 11 a.m.

Source of Transport Auto Riksha, pick up etc. Tata ace, bike, bicycle etc.

No. of Distributors 5 1

No. of T.S.I. 2 0

No. of P.S.M. 1 1

No. of AWSM

(authorized wholesaler sales man)

20 0

Number of outlets 4000 558

Number of beat 12 17

Covered Area Almost whole Jaipur 12 Areas

Toughest Competitors I.T.C., Priya gold Saras, Laxmi

Replacement 0.7% through third party 2.5%

Peak Session Quarter 2 Quarter 3

Weak Session Quarter 4 Quarter 1

Margin Almost 5.65%-7% Almost 10%-12%

Online Software(Distribution) Udaan Raftar

Issues Breakage especially in

Good day biscuit etc.

Old dated, fungus, breakage

rapper, quality etc.

Stock In huge amount Perishable so minimum

43

Distribution Channel:-

Britannia has different channel for both Biscuit and Bread segment, whereas in Biscuit

distribution channel almost 90% supply or distribution is depend on Retailers and 10% supply

depend on wholesaler. In Bread distribution channel the scenario is absolutely vice versa, almost

10% supply or distribution is depend on Retailers and 90% supply depend on wholesaler. When I

was going through with the reason of this huge difference I found that the main reason behind

this different scenario was the product nature. Bread is a perishable product so it is not easy to

stock it in huge amount. So the role of wholesaler is increased in it. While in biscuit only few

wholesalers required for distribution because they can easily stock a huge amount of product for

long time.

As above mention Biscuit has 3 channels and Bread has 5 channels in their distribution chain as

following:-

Bread Distribution Channel Biscuit Distribution Channel

Factory

Authorized

wholsaler

Super stockiest

/wholesaler

Distributor

Retail Outlets

Consumers

Hawker

Deport / C&F

Authorized

wholsaler

Super stockiest

/wholesaler

Retail

Outlets

Consumers

44

Scope of the Study

Every research has its own scope same it has too. The focal point of this research is to identify

the market penetration level of the Britannia bread and the available competitors for the bread

segments and their USP and the area of the scope for formulate the strategy to capture the more

market like Britannia biscuits.

Conclusion

After an intense study and analysis of 60 days, a deep sense of knowledge comes into the light in

the form of conclusion.

a. In Jaipur market among all the brand of bread (10) Britannia is on 7th

rank.

b. Margins of Britannia bread are lesser than other competitors for both retailers &

distributors.

c. In case of Britannia Industries Limited the quality of bread is not consistently good. As

well as packaging need to be improved.

45

Suggestions

To execute our strategy or plan we required following things as form of our proposal:-

1. Improvement in quality should be there: - Quality is the major problem for our

product. There are many quality related issues mentioned by dealers, Retail outlets as

well as customer like

1. Dry quality bread break before time

2. Partially baked

3. Withered packaging

4. Under weight

5. Hard slices

6. Variation in number of slices in different packets

7. Supply of old dated product.

On regular basis due to this the trust and loyalty of customers towards our product

is decrease. So its humble request to Company, please ask to production

department for improve the quality.

Table 4 (Quality related Problems and Issues)

Under weight:-

Lot no.52s18/ use by 9.6.12 Lot no.--------/ use by 16.6.12 Lot no.52j18/ use by 9.6.12

Variation in number of slices(13,15,16)

Lot no.52j18/ use by 9.6.12 Lot no.52j18/ use by 9.6.12 Lot no.52j18/ use by 9.6.12

46

2. Supply should be on time :- As we all know that success of our bread is totally depend

on efficiency of system, so please ask to Kamal transport to make sure supply on time

and if it is possible than till 12.00-1.00 a.m. (supply on time). Because in present

duration the supply time was almost 2.00 a.m. to 3.30 a.m. This is too late for supply

bread to dealers point.

3. Coding system should be there:- Normally most of time distributors faced the problem

of old dated material supply. And when I discussed this matter with production

department’s concerned person then they told me that uploading of tray is always done

under supervision of company person. So in my opinion the problem was in mid of the

route. To solve this problem if it is possible different coding should be there for different

city like Jaipur and others.

4. Man power should be increase:- as we know the Rajasthan territory is very large so

minimum 2 PSM is required to cover Jaipur as well as kotputali area. There is also need

of one more Super stockiest because if we want to increase our beats then to make sure

the supply of bread on time at each point a S.S. is required in V.K.I area or old city.

5. Margins should be Increase:-Margins of distributors should be increase; if we increase

the margins of distributors then in my opinion the loyalty of them will surely increased

and only focus on Britannia bread in respect of multiple brands.

6. Display & Visibility:- Visibility of our Bread is good on outlets but it can be moderated,

because some of retailers don’t have enough space to display Britannia Bread. They

demand for rack or something else to place Britannia bread. And also we can distribute

some brochures or other promotional material with extra schemes to retailers so that the

awareness of our bread will increase.

7. SKU *:-As we know each state has its own requirement in product so if we can make

some new SKU of bread then we can increase our sale by almost 58 ton (based on

competitor product demand) , and mainly our 630 gm popular S.K.U. which was

recently close was maximum sold S.K.U. in Jaipur and the sale of this S.K.U. was almost

180 tray in a day, details of required S.K.U. are as following:-

47

S.K.U. MRP Expected Sale

(gm.) (Rs/-) (Based on competitor product demand)

Popular 600 gm 20/- 30 tons

Popular (400 gm) high volume 5 tons

Popular (300 gm) cc 10/- 10 tons

Popular (100 gm) 6/- 2 tons

Pav (300 gm) 9 Piece 16 /- 3 tons

one Pc. 60gm. ban 5/- 8 tons

Total 58 tons

Note-* S.K.U. indents is expected on basis of the competitors performance as well as the

feedback collected from distributor through questionnaire and personal interview.

48

Limitations of study

1. Customers were not aware about Britannia bread.

2. Some retailers were not interested to share their views.

3. Super stockiest was unable to distribute our bread at any new beat or point due to lack of

transportation.

4. Regular monitoring of each distributor was typical due to lack of man power.

5. There were lots of problems at initial time due to miscommunication between team

members regarding distributor’s different issues.

49

Learning

Learning is a treasure that will follow its owner everywhere. “We learn more by looking for the

answer to a question and not finding it than we do from learning the answer itself.”

The duration of two months was very fruitful to me. Each and every moment of my training

taught me new things which will definitely help me in my future.

I learnt the following:

i. Practical application of research.

ii. Working with people both superiors and subordinates.

iii. I learned the value of responsibility, need for sincerity & dedication, self motivation and

conscientious.

iv. I had the exposure to selling techniques.

v. I learned to handle customer’s queries & objections.

vi. To do better marketing or sale of a product, product awareness is must.

vii. All competitors’ strategy and position into market is also crucial.

viii. As a senior it is very important that we understand the subordinates personal as well as

professional problems.

ix. In a business each level employee engagement is important for company's growth.

x. Before taking any decision, there should be some research over there.

xi. Team spirit is very important a whole team can give best result of any task.

xii. Networking is a key of success, which I personally feel during my SIP.

xiii. In industry only that person can sustain who always being active with all updates

regarding market as well as their company's activities.

50

Value Additions

There are some value addition given by researcher to the company apart from the pre decided

works are as follows:

Targeted 7 dealers to make them a part of Britannia distribution channel to boost the sales

of Britannia bread in the local market.

Targeted 3 super stockiest or authorized wholesalers to make them a part of Britannia

distribution channel to boost the sales of Britannia bread in the local market.

Within the duration of tanning apart from training work researcher added the new

channel members (21 retailers) as retailers with the Britannia distribution network. Those

are now actively working with Britannia.

There were some issues with the super stockiest of the Britannia and distributor. it really

hampered the sales and brand image of the company, So researcher personally met and

found the way out of it. At last now Britannia is working with the old and loyal super

stockiest with the satisfactory mode.

(http://www.google.co.in/#hl=en&sclient=psy-

ab&q=britannia+industries+ltd+delhi&oq=britannia+industries+ltd&gs_l=hp.1.2.0l4.1266.11175

.0.14591.30.27.3.0.0.1.1560.14719.4-13j7j4j0j1.25.0.ciatsh..0.0...1.Lsl-

xRMLSYs&pbx=1&bav=on.2,or.r_gc.r_pw.r_qf.,cf.osb&f)

(http://www.britannia.co.in/companyoverview_overview.htm)

(http://www.britannia.co.in/managementteam_profiles.htm)

(http://www.britannia.co.in/milestones.htm)

(http://www.moneycontrol.com/stocksmarketsindia/)

(http://www.moneycontrol.com/india/stockpricequote/foodprocessing/britanniaindustries/BI)

(http://www.moneycontrol.com/financials/britanniaindustries/results/yearly/BI#BI)

51

Bibliography

http://www.britannia.co.in/companyoverview_overview.htm. (n.d.). Retrieved Aprail 18, 2012,

from http://www.britannia.co.in.

http://www.britannia.co.in/managementteam_profiles.htm. (n.d.). Retrieved Aprail 18, 2012,

from http://www.britannia.co.in.

http://www.britannia.co.in/milestones.htm. (n.d.). Retrieved Aprail 18, 2012, from

http://www.britannia.co.in.

http://www.google.co.in/#hl=en&sclient=psy-

ab&q=britannia+industries+ltd+delhi&oq=britannia+industries+ltd&gs_l=hp. Retrieved May

14, 2012, from http://www.google.co.in.

http://www.moneycontrol.com/financials/britanniaindustries/results/yearly/BI#BI. (n.d.).

Retrieved July 4, 2012, from http://www.moneycontrol.com.

http://www.moneycontrol.com/india/stockpricequote/foodprocessing/britanniaindustries/BI.

(n.d.). Retrieved July 4, 2012, from http://www.moneycontrol.com.

http://www.moneycontrol.com/stocksmarketsindia/. (n.d.). Retrieved July 4, 2012, from

http://www.moneycontrol.com.

K.K.Khanna. (2011). Physical Distribution Management Logistical Approach. Himalaya

Publishing House.

Kotler, P. (2009). Marketing Management. Pearson Education.

Satish K. Kapoor, P. K. (2010). Basics of Distriution Management. PHI Learning.

(Kotler, 2009)

(Satish K. Kapoor, 2010)

(K.K.Khanna, 2011)

52

Annexure

Annexure-1

Project Schedule:-

“A STUDY ON THE DISTRIBUTION CHANNEL OF BRITANNIA BREAD IN JAIPUR

CITY”

A. IN DELHI

DATE Market visit plan

7/5/2012 Factory visit shakun CP

8/5/2012 Market visit with Mr. Monu in area Hari nagar-Subhash nagar

9/5/2012 Market visit with Mr. Raju in area Rajori garden-Tilak Nagar

10/5/2012 Market visit with Mr. Sonu in area Rajori garden

11/5/2012 Market visit with Mr. Teenu in area Janakpuri

12/5/2012 Market visit with Mr. Sonu in area Shiv nagar

Task:-

1. Understand Supply system and then identify cost, capacity and ROI for working for

the route (supply chart).

2. DRCP (daily route coverage plan) to improve service level as per the retailer's

requirements.

3. Study on margin, comparison with major four competitors.

4. Scope of display & visibility on retails.

(Also to plan same for Jaipur)

53

B. IN JAIPUR Date:-14/5/2012

1. Study Present distribution channel.

2. Compare this channel with best in Britannia (Biscuit distribution channel) work out

strategies in Jaipur for distribution.

3. Make a proposal for Jaipur distribution channel. To contribute in maximizing distribution

in Jaipur city.

4. Workout to maximize display & visibility in Jaipur city on key potential outlets.

C. IN JAIPUR

1. Doctor’s visit & convincing in Jaipur to gain benefit for our health segment bread.

(Not executed due to unavailability of Yoga-health product)

54

The Research which is conducted is purely an academic research for the purpose of summer

training project. I would appreciate if you could provide some time to fill the questionnaire.

Questionnaire for Retailers:- (please tick mark on your choice)

1. vki fdl dEiuh dh cszM j[krs gS\ la[;k ds vk/kkj ij jSad iznf’kZr djsaA

¼v½ fczVsfu;k ¼c½ gkosZLV ¼l½ Yk{eh

¼n½ ljl ¼;½ dSyksjh ¼j½ fuEcl

¼y½ vU;-------------------------------------

2. dEiuh fo’ks"k dh czsM j[kus dk dkj.k] ;fn gks rks crk,\

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

3. vkids }kjk izfrfnu vkSlr vkMZj fn;s tkus okyh czsM dh la[;k\ ,l-ds-;w- ds lkFkA

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

4. cszM dh fMek.M gsrq vkidks izHkkfor djus okyk eq[; dkj.k gSaA

¼v½ ekftZu ¼c½ xq.koRrk ¼l½ fjIyslesUV

¼n½ iSdsftax ¼;½ jSij ¼y½ ewY; ¼,e-vkj-ih-½

¼o½ xzkgd ekax ¼’k½ vU;-------------------------------------------------

5. fczVsfu;k dEiuh ds izfrfuf/k 1 ekg esa fdruh ckj nqdku dh foftV djrs gS\

--------------------------------------------------------------------------------------------------------------------------------------------------------------

6. izfrfuf/k }kjk vkidh leL;kvks dk lek/kku fd;k tkrk gSA

¼v½ lger ¼c½ vlger

R Annexure-2

55

7. cszM dh lIykbZ dk vkSlru le;\

¼v½ izkr% 5 cts ls 6 cts rd ¼c½ izkr% 6 cts ls 7 cts rd

¼l½ izkr% 7 cts ls 8 cts rd ¼n½ izkr% 8 cts ls 9 cts rd

8. fMLVªhC;wVj ---------------------------------------¼uke fy[ks½ }kjk vkMZj dh iwfrZ fujUrj dh tkrh gS\

¼v½ gkW ¼c½ ugha

9. fMLVªhC;wVj dk vkids izfr O;ogkj\

¼v½ cgqr vPNk ¼c½ vPNk

¼l½ vkSlr ¼n½ cqjk

10. dEiuh ls izkIr gksus okyk vkSlr ekftZu\

¼v½ 50 iSls ls 1 :Ik;k ¼c½ 1 :Ik;s ls 1-50 :Ik;s

¼l½ 1-50 :Ik;s ls 2 :Ik;s ¼n½ 2 :Ik;s ls 2-50 :Ik;s

¼;½ 2-50 :Ik;s ls 3 :Ik;s ¼j½ vU; --------------------------

11. ekdsZV esa lokZf/kd ekax okys ,l-ds-;w- ds uke ij dk fu’kku yxk;sA

¼v½ czsM%& 100 xkze 200 xzke 400xzke 600xzke vU;------------

¼c½ iko%& 9 ihl 12 ihl vU;-------------

¼l½ cu%& 1 ihl 2 ihl vU;-------------

¼n½ vU; ,l-ds-;w-%& ---------------------------------------------------------------------------------------------------------------------------

12. fczVsfu;k ds jSij ,oe~ iSdsftax ds ckjs es vkids D;k fopkj gS\

--------------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------------------------------------------

/kU;okn uke%&

vkidk cgqr vkHkkjA nLr[kr%&

56

The Research which is conducted is purely an academic research for the purpose of

summer training project. I would appreciate if you could provide some time to fill the

questionnaire.

Questionnaire for Consumers:- (please tick mark on your choice)

1. D;k vkius fczVsfu;k dEiuh dh cszM VsLV dh gS\


2. ;fn gkW rks vki bls fdl Js.kh esa j[ksxsa\

¼v½ cgqr vPNh ¼c½ vPNh

¼l½ vkSlr ¼n½ [kjkc

dkj.k---------------------------------------------------------------------------------------------------------------------------------------------------------

-------------------------------------------------------------------------------------------------------------------------------------------------------------------

3. ;fn ugh arks VsLV ugha dj ikus dk fuEu esa ls dkj.k \

¼v½ vuqiyC/krk ¼c½ vU; czsM mi;ksx es ysrs gSa

¼l½ nqdku ij fMLiys@fothfcfyVh detksj ¼n½ vU;------------------------------------------

4. vki fuEu esa ls fdl dEiuh dh cszM [kkuk ilUn djrs gSa\

¼v½ fczVsfu;k ¼c½ gkosZLV

¼l½ Yk{eh ¼n½ ljl

¼;½ dSyksjh ¼j½ fuEcl

¼y½ vU;-------------------------------------

dkj.k-------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

5. vki cszM [kjhnus gsrq ,d gh nqdku dks izeq[krk nsrs gSa\


c

Annexure-3

57

6. ,d czsM dks vPNk dgus dk vk/kkj gSa\

¼v½ lks¶VuSl ¼c½ xq.koRrk

¼l½ iSdsftax ¼n½ jSij

7. fczVsfu;k ds jSij ,oe~ iSdsftax ds ckjs es vkids D;k fopkj gS\

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8. fczzVsfu;k }kjk le;≤ ij dLVelZ ds fy, nh tkus okyh Ldhe ds ckjs esa vki

D;k dgsxsa\

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------------------------------------

9. vki eq[;r;k fuEu Js.kh dh czsM [kkuk ilUn djrs gS\

¼v½ ukWeZy OgkbV Lykbl ¼c½ czkmu czsM

¼l½ gSYnh LykbZl ¼n½ QqzVh o vU;---------------------------------

10. vkids vuqlkj dUT;wejlZ esa tkx:drk ykus dk l’kDr ek/;e D;k gks ldrk gS\

¼v½ foKkiu ¼c½ izkseks’kuy xfrfof/k;kW

¼l½ ds-,u-vks-ih ¼n½ vU;------------------------------------------------

11. lq>kko%&

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------------------------------------------

/kU;okn uke%&

vkidk cgqr vkHkkjA nLr[kr%&

58

The Research which is conducted is purely an academic research for the purpose of

summer training project. I would appreciate if you could provide some time to give the

answers of following question.

Discussion questions for Distributors in Personal Interview

1. What is stock flow from super stockiest to you & from you to retailers?

2. What is the demand of different brand products into market, in number of tray

consumption?

3. What are the margins companies gives you and you give to retailers?

4. How many outlets you cover?

5. What are the bases of outlet classification you follow?

6. How many hawkers or distributors do you have?

7. What are the average working hours for a hawkers or distributors?

8. Which mode of supply (Vehicle) do you have?

9. How you decided the route plan of distribution?

10. What kind of expenses you spent during bread supply?

11. What is a salary structure of you or your hawkers?

12. What is the maximum capacity of sale you have?

13. What is the reason behind having multiple brands?

14. What is your opinion about our Team including Super stockiest, Territory sales in charge

and primary sales man.

15. What you want from company to increase the sale in your areas?

Thank you for your valuable time

Top/Indext/Table of Content

D Annexure-4

Project Report on Summer Internship With Hyperlink

Documents

Transcript of Project Report on Summer Internship With Hyperlink