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Market survey and anaysis of food segemnt in pune for ananyay marketing consultancy

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  • 1. 1 Executive summary The project work titled Market survey & analysis of food segment in Pune for exploring marketing linkages for rural micro-enterprises in India has been done in a marketing consultancy Ananyay , a consultancy based in Pune. Antz and Partners, Banglore designed the market research and the execution was delegated to Ananyay. The study was simultaneously carried out in four other metros viz. New Delhi, Mumbai, Banglore and Hyderabad. So this was a Live Project with strict time limits. The actual project work consisted of market research through personal interviews in selected shops in selected areas of Pune assigned by the company. The work assigned to me was in Organic and Health Food Segment. There were in all five products assigned to me for performing Market Study- Nachani flour, Dry chutneys, Jams, Pickles, Health food products. The area given to me was whole Pune city and the duration of the project was Eight Full weeks. I was assigned to cover in all 77 shops in 4 shop categories viz. Supermarkets, Provisional stores, Food grain wholesalers and specialty stores. The method adopted for performing the required market research was Personal Interviews of the shop owners by taking prior appointment. I was given an opportunity to design a questionnaire under the guidance of company project guide. The field work involved on an average 2 to 3 personal interviews and then analyzing and filling up of the questionnaire. After the completion of the all interviews Data analysis and Interpretation exercise was carried out with the help of the company project guide. The reasons for me to have chosen this project are as follows: Firstly, this was a project in market research. I am inclined towards taking market research as my career option after the post graduation. Secondly, this was a live market research project with strict deadlines. So, this was the perfect opportunity to experience on the field procedures in market research. This project has its ultimate
  • 2. 2 aim of improving the business viability of rural micro enterprises, which are finding it hard to survive in the fiercely competitive markets of today. Regarding conclusions, from personal point of view; I got the opportunity to experience the procedures involved in the market research project such as Questionnaire design, Personal interview techniques etc. From the actual project work point of view the conclusions for the Organic and Health food segment consisting of products viz. Nachani flour, Dry chutneys, Jams, Pickles and Health food products are as follows: For local micro enterprises and Self Help Groups wanting to enter the Pune market Ready to eat health food products an dry chutneys segment provide a promising opportunity due to the present situation at the market place, made clear in the data analysis done for these two segments. Pickles segment provides a relatively tougher market competition as there are already fairly large number of local micro-enterprises coupled with the almost 70% market share enjoyed by big four players namely Praveen, Mother s recipe, K.P. and Bedekar. The remaining segment (Nachani flour) is avoidable since the strong market hold enjoyed by Sakas foods coupled with the strong customer loyalty towards the brand.
  • 3. 3 Objectives and scope of the project Objectives of the project: Ananyay is marketing consultancy based in Pune, which is working for the purpose of creating sustainable livelihood for rural micro-enterprises in India. Under the wave of fierce price competition and sheer scale of production of big MNCs and Indian manufacturers; these small micro enterprises are finding it difficult to survive. These enterprises; due to their rural place set up ; have access to the best of raw materials and also the knowledge of production techniques as well as knowledge of unique regional crafts. All they require is a perfect knowledge regarding the market potential for their products and market information in terms of average monthly demand, seasonal demand variation, credit period offered by other suppliers, margins enjoyed by the retailers and distributors in the city etc. Given this information, these enterprises will be able to effectively tackle competition from bigger enterprises. This will in turn generate rural employment in these enterprises. Thus, the objectives of this project are as follows: 1) To collect information regarding zone wise market potential for each of the products (in Pune) 2) Average credit period allowed by the other suppliers 3) Average margins enjoyed by the retailers on M.R.P. of these products 4) Approximation about current market share of different market players in each of the product segment 5) Judge the assertiveness of the retailers and wholesalers in sourcing the products from micro enterprises in place of bigger market players having established brands.
  • 4. 4 Scope of the project: Duration of the project: 8 weeks Area of operations: Pune (East): Camp, Koregaon park, Railway station area, Vishrantwadi, Khadaki Pune (West): Kothrud, Shivaji nagar, Aundh, Deccan gymkhana Pune (Central): All Peths, Market yard, Satara road area, Swargate Shop categories: Provisional stores: 8 per zone (24 in all) Supermarkets: 8 per zone (24 in all) Food grain wholesalers: 18 in all Specialty stores: 11 in all Total: 77shops (Personal interviews of 77 shop owners) Product range to be covered: Nachani flour Pickles Jams Dry chutneys Health food products
  • 5. 5 Company Profile The project work involved two companies viz. Ananyay- a marketing consultancy based in Pune and Antz and Partners-a Banglore based market research firm which is responsible for the design of this market research project. Ananyay is a Pune registered marketing consultancy with a committed interest in creating Sustainable living contexts for rural micro-enterprises and Self Help Groups employing rural artisans and craft communities. Set up in 2003 by Ms.Preeti garg, herself a M.B.A. from Karnataka university having 5-6 years of work experience in a Delhi based market research consultancy; the foci of Ananyay s initiatives has been three fold: Creating marketing linkages for rural products in urban markets. Raise support for traditional crafts amongst urban design and architecture communities. Reorienting traditional crafts in terms of technology and commercial acumen to meet the needs of urban markets. The context Craft communities around the world have had to face the disinheriting forces of globalization. Those communities who had a creative response survived, others vanished. Even the ones that continue to persist in their efforts, face various problems like unavailability of raw material, lack of demand for traditional goods, inability to negotiate in the contemporary market place, and lack of respect for the craft. Ananyay s projects Ananyay is working with Bodos in Assam, Tambats in maharashtra. In the past Ananyay has closely worked with the Kurmars in Maharashtra and the Kumbharas in Kerala to create self-sustainable communities. The strategies used to achieve this are:
  • 6. 6 Creating business strategies with the participation of SHGs and micro enterprises. Developing marketing linkages. Capacity building by instituting designing, accounting and sales processes. Developing promotional material. Organizing exhibitions and customer interfaces. Antz and partners, Banglore: Antz & Partners was incubated by a group of seasoned professionals with diverse domain expertise. The name was inspired from the working culture of ants. An insect with qualities similar to humans, only better. Like Ants , we believe in teamwork and intelligence, process and specialization is of utmost importance. An ant can carry 20 times it own weight. We at ANTZ & PARTNERS will put in the best of efforts to achieve our goals. Our Process Like an Ant out on its mission, we believe in an account management approach to our assignments. On signing, we will identify a champion to front end, who will be responsible for the assignment. The core team acts as the planning board, brainstorming for solutions. Depending on the assignment deputed and timelines set, we also induct project staff members. Team Members: Rumi Sikdar, M.Sc. Sericulture The driving force of ANTZ & PARTNERS, Rumi has 12 years of experience in the development sector. She has worked on projects on an end-to-end basis in Livelihoods, Poverty Alleviation, education, income generation, resourcing, micro entrepreneurship, disability for rural, urban and peri-urban areas. Her working
  • 7. 7 knowledge extends across the geographies of Tamil Nadu, Karnataka, Madhya Pradesh, Delhi,Gujarat and Andra Pradesh. Prior to the founding of ANTZ & PARTNERS she has worked with Dr. Reddy's Foundation-India, Youth for Unity and Voluntary Action (YUVA) - Mumbai; Association of People with Disabilty (APD) - Bangalore; Business Community Foundation (BCF) - Delhi; Sense International India - Ahmedabad; Center for Environmental Education (CEE) - Ahmedabad; The Action Research Unit (TARU) - Bangalore. Rajesh Kumar, IIMA The lateral thinker of ANTZ & PARTNERS. He has around 15 years of work experience in marketing, brand management, advertising & communication. He has worked on top brands like Godrej, IBM, Symantec, BPL, Airtel, Hutch and many more as part of some of the top advertising agencies of the country. He has headed corporate communications for Airtel (Bangalore) & for Hutch (Gujarat). He has also been a part of a several mega national market surveys in India. Rajesh loves teaching and is a visiting faculty at various MBA institutes in Bangalore. Samir Bhatia, DSE, IIMA Samir (with over 500 mandays of training experience) brings to his workshops skills and attitudes that are very difficult to replicate. He has the rare distinction of having two world class alma maters. He is an M.B.A from IIM (Ahmedabad) (1989-1991) & MA from Delhi School of Economics(1987-89). His effectiveness is proven from the tangible results organizations have achieved in terms of Customer Satisfaction Rating improvements and eventual profitability. Be it Corporate, NGO s or Government. In his desire to keep abreast with academics he has invested his time in interacting with management students as a visiting faculty at IMT, Ghaziabad and Times School of Marketing.
  • 8. 8 Raj Iyer, M.A (Sociology) JNU The most versatile member of ANTZ & PARTNERS. Raj had more than 30 years in the development sector. He has founded and developed some of the most successful NGO's like Gram Vikas & PRAYOG. He has intense work experience in each and every district of Karnataka. apart from all South Indian languages, he is fluent in Russian & German as well. Raj Iyer, IIMC The resource bank of ANTZ & PARTNERS, our key asset. With more than 20 years of work experience, he can add value to every issue under the sun (almost). He has worked with the Corporate and Development sector in the areas of training and product management. Some of his key achievements include the creation and implementation of human resource training programs at various banks, IT companies, etc. Raj has also successfully developed a workshop on effective communications for corporates . He was instrumental in conceptualizing and designing training programmes for Livelihoods Advancement Business School- LABS for Dr. Reddy's Foundation. Raj is a guest faculty at IMS Mumbai and Pune. He is the most vibrant personality in the team (that's when he gets time off his training schedule!). Areas of operations: Our area of operations covers end-to-end solutions in: Programme management Develop and implement programmes which includes, Employment Skill Training & Placements, Small/ group enterprise building, Marketing linkages for collectives Providing Strategic directions to programmes Co-ordinate and manage programmes and working with teams Strategic planning and directions
  • 9. 9 Communication & Media Management Research/ Image/ Brand Building exercises Campaigns, press releases, digital and electronic media Media management through PR agencies Conduct events for awareness and resource building Develop communication tools Livelihood & Skill training Designed and developed SAFAL (Skills Academy For Appropriate Livelihoods), a basket of livelihood option with training and income opportunities for low income groups Training in enterprise development Other on-going projects: Jan Sikshan Shansthan, Raichur, is an NGO organized with 80 Self Help Groups with more than 1600 members from the rural & urban areas. SAFAL, in partnership with JSS, aims to provide sustainable and profitable livelihood opportunities in Raichur. SAFAL's intervention after the market scan has been in 4 directions: Organic Cotton Weaving Unit The objective here is to revive the existing cotton industry by bringing in innovative low cost cotton production. Short staple cotton grown organically and further integrated with other vegetable crops reduces the cost of production and at the same time reduces the risk of disease crop failure. The farmers growing this organic
  • 10. 10 cotton need a market for the products from their weaving unit which can cater to the local markets. Food Processing Unit The program was envisaged for 8 SHGs with 60 women in food production, The intervention has been done in identifying selected products and developing them further, to access bigger markets. Developing the brand strategy. Identifying the target segment, brand name, positioning, brand architects and brand identity. Product development strategy, including standardization, quality and hygiene conditions, forms, pack size, pricing etc. Developing POS (Point of Sale) collaterals like packaging, posters, dispensers, etc. Developing the distribution channel PR activities to popularize the brand, media advisory services Market intelligence process development Textile & Garments A group of 25 women from 3 SHGs were trained in making garments, embroidery and lambani kasoti, children's wear, razais (blanket making) and other upholstery items, local markets were analyzed. As a 1 st step the women were initiated to take up a shop so that they could exhibit their products and at the same time access job orders. The group has started taking orders for wedding and festival seasons. The next step has been identified as accessing job orders from neighboring districts and bulk orders. The process is on to upgrade the skills and finesse of the women with the guidance of a master skilled person, in terms of color combinations, market trends, etc. so as to reach out to the metro markets.
  • 11. 11 Projects in Pipeline SAFAL & Gram Vikas Gram Vikas is based in Kolar. The NGO has asked Ants & Partners Conducting a market scan of Kolar sub-division to identify livelihood opportunities both for setting up production units, servicing units and placement opportunities. The project is aimed at helping SHGs to take up services like masonry and set up highway dhabas. With GMO - Grameena Ookuta Sanga value adding to farmer's produces like tomato, garlic and ginger, this project aims at developing market linkages to the value-added products. Antz & Partners with RORES RORES is an NGO based in Srinivasapur. They work for Spirulina, a new- generation multi-vitamin supplement extracted from algae. This product is to be promoted as a health drink, capsule and powder to the ITES sector. Karnataka Urban Infrastructure Financial Corporation (KUIDFC) has formed numerous SHGs under its poverty Alleviation program to bring about a significant change in the quality of life of the urban poor and provide opportunities for employment. SAFAL will identify micro-enterprise development with the SHGs.
  • 12. 12 Theoretical background Market segmentation: Combination of two types of market segmentations was used for segmenting the Pune city. First segmentation was a simple geographical segmentation. Considering the geographical spread of the city, the city was divided into three zones viz. East zone, West zone and Central zone. Second level of segmentation was a sub-segmentation of each zone into two segments viz. Lower middle class & middle class locality and secondly Higher middle class and upper class localities. Accordingly, the type of shops to be selected as respondents was determined as 1) Provisional stores 2) Supermarkets and 3) Food grain wholesalers. Questionnaire design: The basic purpose behind the questions asked in the questionnaire was to extract information from the respondents regarding 1) Which are the existing brands in each of the target product category and possible new entrants. 2) Which brand is the highest selling in each of the product category. 3) Current suppliers of these products and their credit period. 4) Experience of the suppliers in dealing with local or Self Help Groups or Local micro enterprises and their readiness to source from these type of suppliers. While scheduling the questionnaire, the questions, which were slightly investigative in nature, were put in last in order so that the respondent does not become apprehensive at the start of the interview.
  • 13. 13 Research Methodology What is Marketing Research? American Marketing Association defines Marketing Research as The systematic gathering, recording, and analyzing of data about problems relating to the marketing of goods and services . The keyword that distinguishes research from a haphazard gathering of observation is systematic. The systematic conduct of research requires particularly these two qualities: (1) orderliness, in which the measurements are accurate and the cross section is fair, and (2) impartiality in analysis and interpretation. The definition also indicates the scope of marketing research which can modified by adding Planning and Interpreting The definition needs these two stages of Planning and Interpreting, because (1) unless there has been planning in advance, a study would be unsystematic, and (2) the research has to be completed by interpreting the data for it to have meaning and value to its user. Seven steps in research process: (1) Determine or define the problem or opportunity that is faced. (2) Specify what information is needed. (3) Identify the sources of information. (4) Decide on the techniques for acquiring the information. (5) Gather and process the information. (6) Analyze and interpret the meaning. (7) Present the findings to the decision makers. The seven steps can be placed in three groups as follows: First there is initiating or planning of a study, which comprises the initial four steps in our model: determining (1) what the problem is, (2) what data are needed, (3) how to obtain those data, and (4) from whom. Second, there is (5) the gathering and processing of data. Third, there is (6) the interpretation of the data and (7) its presentation to decision makers.
  • 14. 14 Step (5), gathering and processing of data, is the phase of a project that involves the most time and labor. That alone would make it seem to be the principal phase. Its great importance is evident when you consider how a study would fail if the data were spurious or measured incorrectly. Nevertheless, none of the three phases is the critical one; they all are. Types of Research Designs: Based on the nature of causation and the benefits of measuring it, there are three types of research designs viz. Descriptive design, Experimental design and Quasi- experimental design. Descriptive designs have that name because they describe phenomena without establishing association between factors. The data may be (1) the behavioral variables of people ( or the subjects) who are under study and (2) the situational variables that existed or are forthcoming. For instance, in the computer stores example, a study may measure various attributes of the sales people, the training program, and the retailing situation. It might also measure how the sales people and customers behaved, as well as what happened to sales volume. It does not determine the extent of association between them, but it may provide the basis for inferring some connections. Experimental designs are intended to demonstrate cause and effect relationships. If they can measure concomitant variation, the degree of change in one variable, y, when the other variable, x, is changed, that is of greater benefit. A classical model of experimentation is in biological science when a cure is being sought for a disease that is epidemic in some region. Researchers hypothesize that some drug would cure the illness. To demonstrate this, two groups of sufferers from the malady are chosen. The treatment is administered to one portion of these, while the other group-similar to first one- is administered simply a placebo (some innocuous substance). The second portion is the control group. The difference is rate of recovery between the test group and the control group is attributed to the effects of the drug. An experimental should be used whenever it is feasible and cost-justified in conclusive studies. Unfortunately the ideal design, exemplified earlier, is difficult or infeasible in marketing and other social science research, which confronts the vagaries and dynamics of human behavior. Often, however, the strict requirements
  • 15. 15 of deliberate manipulation or control of extraneous variables is waived in marketing studies, at some risk. Quasi-experimental Designs, as their name suggests, lack the rigorous qualities of the real experiments, particularly a valid demonstration of variables association. Still, they are not descriptive ones either, because they do yield some quantitative indicators between their variables. Sources of data: Secondary data: This refers to those data that are already gathered and available. There may be internal sources within the client s firm. Externally, these sources may include books, periodicals, published reports, data services, and computer data banks. Primary data: This type of data can be obtained fro individuals, from families representatives, or from organizations. There is increasing use of panels, which are groups of people (usually with some common factors) that supply information. These may be one-time ad-hoc panels that are utilized for just one occasion. There are more or less permanent panels that are used repeatedly, which tends to make the information more comparable over time. This also avoids the cost of recruiting new sets of people for each data gathering, valuable also for repeated measurements. Sampling: Sampling is the process of selecting a specific number of respondents from the universe of large number of potential respondents. This method is used either when sufficiently accurate results are possible by studying only a part of total population or it is not feasible to study entire population due constraints such as lack of time, lack of resources, lack of manpower etc. Types of Sampling techniques: Probability sampling and Non-probability sampling Different techniques involved in probability sampling are Simple random sampling
  • 16. 16 Complex random sampling In complex random sampling, there re various techniques such as Cluster sampling, Systematic sampling, Stratified sampling etc. Non-probability sampling: Non-probability sampling is that sampling procedure which does not afford any basis for estimating the probability that each item in the population has of being included in the sample. Non-probability sampling is also known by different names such as deliberate sampling, purposive sampling and judgment sampling. In this type of sampling, the researcher selects items for the sample deliberately; his choice concerning the items remains supreme. In other words, under non-probability sampling the organizers of the enquiry purposively choose the particular units of the universe for constituting the sample on the basis that the small mass that they so select out of a huge one will be typical or representative of the whole. Thus, the judgment of the organizers of the study plays an important part in this sampling design. Communication approaches: These can be broadly divided into types viz. Observation or Indirect and Questioning or Direct. Questioning: Questioning can be structured in two types viz. Formal method of questioning and Disguise method of questioning. A formal method standardizes the questionnaire to be used in gathering data. The questions would be printed so that interviewers will ask them exactly as given. The answer categories may be standardized and printed also. The contrary, or informal, interviewing approach leaves the wording of questions to interviewers discretion. Answer categories are unstructured when the respondents are free to word their replies. Disguise is the concealing of purpose or sponsorship of a study. This may be fair, as well as desirable, when used to avoid people slanting their answers when those aspects are revealed. However, it would be unethical when respondents are misled into divulging information that they would refuse if actual sponsorship were revealed.
  • 17. 17 Selecting the media for communication: Generally, one amongst the following four or combination of few or all of these media is used for the purpose of data acquisition. Personal Interview Telephone Interview Direct mail Electronic media like SMS poll or Internet poll or online questionnaire filling. In this Market research project Personal interview technique is used. Personal Interview: The personal medium is that of an interviewer being face to face with the respondent (the data source). This was the traditional medium, and may take place in various types of locations. Structured interviews: Te question forms are simply handed over to respondents, who are to fill them out and return them. It clearly is best to have this take place right where respondents are met. If instructions are clear to all and the subjects are willing to do this work savings are likely. Only wholly structured questions can be used, and answer categories may have to be structured too since few subjects would be willing to write in their free responses. The opposite of structure characterizes Depth interviews. In these, only some introductory and classification questions may be formally printed on the interviewing form. For the principal information, interviewers are given guidelines for conducting informal questioning. The intent is to elicit information through probing with a series of questions determined by interviewers on the spot, going to depths of memory or the subjects psyche. If well conducted with the cooperation of respondents, much may be learned about attitudes and experiences that no other method may obtain. Responses may be stimulated with projective techniques that cause subjects to bring out their own personalities as they respond to ambiguous situations presented to them with visual aids. Against the benefits of the Unstructured probing are large numbers of dangers such as Lack of control Bias of the respondents Samples that may be unrepresentative. Questionnaire design:
  • 18. 18 Functions of questionnaire: (1) Give the respondent a clear comprehension of the questions. (2) Induce the respondent to want to cooperate and to trust that answers will be treated confidentially. (3) Stimulate responses through greater introspection, plumbing of memory, or reference to records. (4) Give instructions on what is wanted and the manner of responding. (5) Identify what needs to be known to classify and verify the interview. Steps in questionnaire design: (1) Determine the specific data to be sought (2) Determine the interviewing process (3) Evaluate the question content (4) Decide on the question/response format (5) Determine the wording of questions (6) Determine the questionnaire structure (7) Determine the physical characteristics of the Form (8) Pretest, Revise, and Final draft Evaluating the question format: The evaluation can be carried out by considering the following criteria: Does the respondent understand the question? Does the respondent have the necessary information to answer the question? Will the respondent provide the necessary information? Deciding on the question/response format: Questions or responses can be roughly classified into two principal groups (1) Close-ended questions, in which a list of acceptable responses is provided to the respondent and (2) Open-ended questions, in which acceptable responses are not provided to the respondent and they may answer in his or her own words. However, it is a little more complicated than that because there are numerous variations of these two basic types. Determining the wording of questions:
  • 19. 19 Guidelines for constructing the wording of questions: Use simple language Use familiar vocabulary Avoid lengthy questions Be as specific as possible Avoid double barred questions Avoid leading questions Avoid loaded questions Avoid estimates Determine questionnaire structure: Guidelines for questionnaire structure: (1) Lead in questions- To start the flow of responses and gain rapport (2) Qualifying questions- To find out whether a person is the right type of provide the wanted information (3) Warm-up questions- To direct thinking and memory (4) Specifics- To gather actual information sought by the study (5) Demographic questions- To describe the person who responded and thank the respondent for cooperating. Research methodology used in this project work: The research work carried out in this project is of Quasi-experimental nature. The sampling technique used is that of non-probability type. The communication approach used is that of Personal interview under Disguised Interview nature. NOTE: The questionnaire design and sampling design was not the part of this project work. So, only indicative information as disclosed by the research agency can be obtained for project report purpose.
  • 20. 20 Data analysis Product: Nachani flour Zonal availability: East West Central Provisional Stores 8/8 8/8 8/8 Supermarkets 5/8 8/8 8/8 Food grain wholesalers 10/10 4/4 4/4 East (Pune): Camp area, Koregaon park, Vishrantwadi, Khadaki, Railway station area West (Pune): Shivajinagar, Kothrud, Deccan gymkhana, Aundh Central (Pune): All Peths, Market yard, Swargate, Hadapsar, Satara road area Market Share (approximate): Sakas 40% Bedekar 15% Praveen 10% Self 20% Local 15% Supplier Type: Company Self Identified Local/Regional
  • 21. 21 24 12 20 10 Average margins for retailer or wholesaler (based on M.R.P.): Company Self Identified Local/Regional 5% to 8% 30% to 50% 12% to 20% 20% Average credit period given to retailers or wholesalers by the distributors: Company Self Identified Local/Regional 60-90 days n.a. 45-60 days 45-60 days Company: The retailer or the wholesaler directly orders the required quantity from the company itself. Self: The retailer or wholesaler manufactures and sells the final product himself. He only purchases the raw material required for the final product from outside suppliers. Identified: The product is purchased from distributors and agents for the companies products by the wholesaler or retailer. Local/Regional SHG s: The retailer or wholesaler buys the product from small scale enterprises and self help groups located in and around Pune city.
  • 22. 22 Product: Dry chutneys (Having shelf life of 30-45 days) Zonal Availability: East West Central Provisional Stores 8/8 8/8 8/8 Supermarkets 8/8 8/8 8/8 Food grain wholesalers 10/10 4/4 4/4 East (Pune): Camp area, Koregaon park, Vishrantwadi, Khadaki, Railway station area West (Pune): Shivajinagar, Kothrud, Deccan gymkhana, Aundh Central (Pune): All Peths, Market yard, Swargate, Hadapsar, Satara road area Market share (approximate): Local 45% Self 20% Shriram foods,Pu ne 20% Praveen 10% K.P. 5% Supplier Type: Company Self Identified Local/Regional 08 15 27 47
  • 23. 23 Average margins for retailer or wholesaler (based on M.R.P.): Company Self Identified Local/Regional 5% to 8% 30% to 50% 12% to 20% 30% Average credit period given to retailers or wholesalers by the distributors: Company Self Identified Local/Regional 30 days n.a. 30 days 30-45 days
  • 24. 24 Product: Fruit jams Zonal Availability: East West Central Provisional Stores 8/8 8/8 8/8 Supermarkets 8/8 8/8 8/8 Food grain wholesalers 10/10 4/4 4/4 East (Pune): Camp area, Koregaon park, Vishrantwadi, Khadaki, Railway station area West (Pune): Shivajinagar, Kothrud, Deccan gymkhana, Aundh Central (Pune): All Peths, Market yard, Swargate, Hadapsar, Satara road area Market share (approximate): Kissan 25% Mapro 35% Vijay 20% Nova 10% Foreign brands 10% Supplier Type: Company Identified Local/Regional 10 43 24
  • 25. 25 Average margins for retailer or wholesaler (based on M.R.P.): Company Identified Local/Regional 5% to 8% 12% to 20% 30% Average credit period given to retailers or wholesalers by the distributors: Company Identified Local/Regional 60-90 days 45-60 days 45-60 days
  • 26. 26 Product: Pickles Zonal Availability: East West Central Provisional Stores 8/8 8/8 8/8 Supermarkets 8/8 8/8 8/8 Food grain wholesalers 10/10 4/4 4/4 East (Pune): Camp area, Koregaon park, Vishrantwadi, Khadaki, Railway station area West (Pune): Shivajinagar, Kothrud, Deccan gymkhana, Aundh Central (Pune): All Peths, Market yard, Swargate, Hadapsar, Satara road area Market share (approximate): Praveen 31% Bedekar 16% K.P. 16% Mother's recipe 21% Priya 5% Local 11% Supplier Type: Company Identified Local/Regional 24 34 10
  • 27. 27 Average margins for retailer or wholesaler (based on M.R.P.): Company Identified Local/Regional 5% to 8% 12% to 20% 30% Average credit period given to retailers or wholesalers by the distributors: Company Identified Local/Regional 60-90 days 45-60 days 45-60 days
  • 28. 28 Product: Health food products (oil free, low fat, sugar free etc) (ready to eat food products Zonal Availability: East West Central Supermarkets 5 2 0 Specialty stores 7 3 2 East (Pune): Camp area, Koregaon park, Vishrantwadi, Khadaki, Railway station area West (Pune): Shivajinagar, Kothrud, Deccan gymkhana, Aundh Central (Pune): All Peths, Market yard, Swargate, Hadapsar, Satara road area Market share (approximate): Not possible to estimate due to fragmented nature of market and lack of branded items. Supplier Type: Self Identified Local/Regional 12 20 10
  • 29. 29 Average margins for retailer or wholesaler (based on M.R.P.): Self Identified Local/Regional 30% to 50% 12% to 20% 30% Average credit period given to retailers or wholesalers by the distributors: Self Identified Local/Regional n.a. 45-60 days 45-60 days Self: In case of self-manufacturing of the final product to be sold; there is no question of credit period for the retailer or wholesaler. The credit period applicable in this case will be that for the raw material being procured by the retailer or wholesaler for the manufacturing purpose.
  • 30. 30 Ranking of factors- considered to be important by the retailer/wholesaler in dealing in business activities with a prospective supplier: Total number of shops visited: 77 1 2 3 4 5 6 7 Range of products distributed 4 42 31 Credit period 40 13 24 Regularity of supply 3 26 4 23 21 Fast/Early delivery of products 4 67 6 Quality of products *** 67 7 Discounts/promotions offered 10 35 32 Fairness in business*** 3 2 This chart indicates the collective importance given by the retailers or wholesalers for various factors listed above; while dealing with the local micro-enterprises and SHG s. This is a qualitative analysis. Following findings emerge from the data analysis of the above chart: Quality of the product is a primary concern for almost all of the respondents. Some even take that factor as a default feature of the product. Extended credit period, wider range of products and regularity of supply are the close second and third most important factors for the respondents. According to most of the respondents, irregularity of supply is the main reason for them in not choosing local micro-enterprises and SHG s as their suppliers, because they are not able to react as swiftly to the sudden changes in demands as a large company or a big supplier.
  • 31. 31 Fairness in business is factor that is taken for granted so most of the respondents have not even rated that factor. But, relative competitiveness of the supplier is the single most important factor for the respondents and not whether he is a micro- enterprise or SHG s or a commercial enterprise or agent. They are ready to have business relationships with SHG s or micro enterprises only if they are relatively competitive in business aspects. They are not bothered about the social service that these SHG s are doing through their businesses.
  • 32. 32 Conclusions Product: Nachani flour Zonal availability: East zone: 3 supermarkets out of total of 8 visited in the area were not stocking the product. These 3 supermarkets wee in camp area which is a basically having majority of non-maharashtrian population. This can be the reason for low availability. West zone: 100% availability Central zone: 100% availability Total number of market players: In all 5 market players. Sakas foods, Bedekar, Praveen, local/regional micro-enterprises Present market share scenario: Sakas is the undoubted market leader with 40% market share. This is more than double of the nearest competitors such as Bedekar (15%) and Praveen (10%) Small local enterprises have very low market share of (15%) Average credit period given by local/ SHGs and their comparison with other type of suppliers: 45-60 days as compared to 60-90 days given by major players. Sakas foods gives increase credit period in order to have advantage over other brands and therefore retailers promote Sakas, according to respondents. Average margins on M.R.P. given to retailers by the local/SHGs and it s comparison with other type of suppliers: Identified suppliers give 12- 20% on M.R.P. which is same as can be given by local enterprises or SHGs.So, no advantage offered by local micro enterprises. Viewpoint of retailers and wholesalers in dealing with local/SHGs supplying the product to them: Most of them are of the opinion that Sakas has established its clout in this segment in a short span of time and is now a well-respected brand with large no. of loyal customers. There have even beaten old market players like Bedekar and Praveen.So, most of them are not ready to stock new brand from micro enterprises unless there is any significant value addition in their product as compared to Sakas.
  • 33. 33 Product: Jams Zonal availability: East zone: 100% West zone: 100% Central zone: 100% Total number of market players: Highly saturated and cluttered market with 5-7 domestic and at least 4-5 foreign brands. No player from either self or local/SHG s. Only big established companies are able to survive for long duration in this market, according to respondents. Present market share scenario: Very competitive with 4 players sharing the market almost wholly. Mapro is market leader with (35%) market share followed closely by Vijay (25%), Kissan (20%), Nova (10%) and imported brands (10%) Viewpoint of retailers and wholesalers in dealing with local/SHGs supplying the product to them: This is one market, which must be avoided by small enterprises and SHG s simply because of clout of large players like Kissan (HLL), Mapro, Vijay and foreign brands. These players have effectively tackled the competition from small local enterprises by working on credit periods and margins given to retailers. So, in the past, small players have found this as a hard segment to survive in.
  • 34. 34 Product: Dry chutneys Zonal availability: East zone: 100% West zone: 100% Central zone: 100% Total number of market players: This is segment of the small enterprises and SHG s. Other notable players are K.P., Praveen, and Shree food products. Present market share scenario: Local micro enterprises enjoy the highest market share of 45%. No other player has a market share, which is even half of that of Local microenterpries and SHG s. Viewpoint of retailers and wholesalers in dealing with local/SHGs supplying the product to them: This is the segment for which retailers mostly want local micro-enterprises. The main reason for this is the ability of these small players to provide the product with greater supply frequency than the big companies. This is due to their limited and small area of operations. Also they give more margins on M.R.P. than those offered by big branded players.
  • 35. 35 Product: Pickles Zonal availability: East zone: 100% West zone: 100% Central zone: 100% Total number of market players: Highly competitive market with mostly large companies such as Praveen, Mother s recipe, K.P., Bedekar, Priya with sizeable presence of small local enterprises and SHG s. Present market share scenario: Cluttered market with market leader enjoying just a small percentage gain over others. So, very competitive market. Praveen is a market leader with (30%) market share followed closely by Mother s recipe (20%), K.P. (15%), Bedekar (15%). The interesting part is a emergence of local/SHG s in this segment in the last 3-4 years capturing a market share of about (15%) in short span of time in a competitive market, according to respondents. Average credit period given by local/ SHGs and their comparison with other type of suppliers: Local/SHG s are matching with identified supplier category by giving the same 45-60 day credit period to retailers. Average margins on M.R.P. given to retailers by the local/SHGs and it s comparison with other type of suppliers: Local/SHG s give about 30% on M.R.P. which is more in comparison with 12%-20% offered by identified suppliers. This is advantageous for local/SHG s. Viewpoint of retailers and wholesalers in dealing with local/SHGs supplying the product to them: In this segment even though only small number of local/SHG s are present but their market share is increasing consistently due to their ability to provide higher supply frequency which gives the customer a more freshly prepared pickles as compared to large companies distribution can provide.
  • 36. 36 Product: Health food products Zonal availability: Presently, the products in this category are visible only in select shops in up-market areas in Pune like Eastern areas of Koregaon Park, Camp, Kalyaninagar and Western areas like Aundh, parts of shivajinagar and S.B. road. So, presently this can be called as a Niche Market Segment . Total number of market players: No specific recognized brands available. Cluttered market. Viewpoint of retailers and wholesalers in dealing with local/SHGs supplying the product to them: Presently this market is restricted to certain up-market areas due to high prices of products. But according to customers, as health awareness amongst the urban citizens is increasing by the day; this market will have the opportunity to prosper and also most of the players in this market are local/SHG s and they are able to operate with a high profit margin due to the niche nature of market. So, this is a ideal segment to enter into for local micro enterprises as this market is presently free of any one large manufacturer and also the scale of operation of this market is small.
  • 37. 37 Limitations 1) The project work consisted of short interview of shop owners or managers in about 20-25 minutes. The method followed was that of Disguised Interview technique because it was observed that the respondents were apprehensive about disclosing their business information if they came to know that it is a market study survey. Even after this, the respondents were not readily willing to disclose sensitive information like credit period and profit margin. Due to this, these figures are believed to be exact and therefore may not actually be so. 2) The market share information is derived from the reply of the respondents to The question concerning the highest selling brand in each segment. No market Data relating to these products was found which could have been used as a Primary Data. So, market share and market leader indications are not exact. 3) Due to limited time period of project work, in some cases (5-6 out of 77); due to unavailability of shop owner in that time period, shop manager or assistant s interview was taken for gathering the information.
  • 38. 38 Suggestions After studying the Data analysis and findings mentioned previously, the target product range for which the market research project was undertaken can be basically divided into two groups viz. 1) Those products in which entry of new player (local/SHGs) is not favorable or should be avoided and 2) Those products in which a new player has a probability of capturing the market share from existing players and thereby has the opportunity to succeed. This classification of products is done consistent with the aim of achieving the objectives from the project work mentioned previously. Avoidable products: 1) Nachani flour: Reasons: Market leader in this segment Sakas foods have a strong hold on the market through wholesalers and has in the past dealt with the competition from micro enterprises by strong negotiating power. Besides this, the brand has a strong customer loyalty. 2) Jams: Reasons: According to respondents, the top four players namely Mapro, Vijay, Kissan and Nova have a strong market presence for so many years that there is almost no room left for small players. Also, in the past, local/SHG s present in this segments have not been able to survive the competition from well-established top marketers.
  • 39. 39 Products with high probability of success for new entrant in the market: 1) Dry chutneys: Reasons: Market is basically dominated by local micro enterprises. The basic reason for their success, according to respondents is demand of customers for fresh stock of these products. Large players are not able to match the supply frequency of these local micro enterprises. Also the less complicated nature of operations is suitable for microenterpries. 2) Health food segments (Ready to eat food products): Reasons: This is the most promising segment to enter into for local micro enterprises and SHG s. The reasons are the present niche nature of the market, which enables them to cater to up-market customers, which gives them a chance to attract higher profit margins and secondly the market is of cluttered nature with no one having a stronghold over the market. 3) Pickles: Reasons: Although large-scale companies, according to the respondents, dominate the market, the demand for more fresh stock of products has worked in favor of small/local micro enterprises because they are able to provide a more fresh stock of products as compared to large companies. Also according to respondents, they are able to satisfy the local taste preferences of customers more comprehensively than the large-scale operators for whom it is difficult to design the product for each city differently.
  • 40. 40 Bibliography: Books: Marketing research- Seventh edition, David Luck & Ronald Rubin, Prentice-Hall of India Marketing research, Mr.beri Web sites: www.antz.biz www.traidcraft.co.uk
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