1. A
Project Report
On
“THE PERCEPTION OF THE RETAILERS TOWARDS THE VARIOUS DISPLAY STRATEGIES IMPLEMENTED BY SELECTED FMCG COMPANIES, NAMELY; HINDUSTAN UNILEVER LTD., PROCTOR & GAMBLE LTD., CADBURY LTD, NESTLE FOODS PVT. LTD. AND ITC Ltd.”
At
Pepsico India Holdings Pvt.Ltd.
Submitted to
S.V. Institute of Management, Kadi
Summer Internship Programme
In fulfillment of the requirement of the award for the degree of
Master of Business Administration
In
Gujarat Technological University
Under the guidance of
Prof. Mitesh Jayswal
Associate Professor
S.V. Institute of Management, Kadi
Submitted by
Name
Ms. Payal Trivedi
Enrollment No.
117490592033
Batch
2011-13
Semester- III, June-July 2012
2. Institute’s Certificate
This is certified that this Summer Internship Project Titled “The perception of the retailers towards the various display strategies implemented by selected FMCG companies, Namely; namely; Hindusan Unilever Ltd., Proctor & Gamble Ltd., Cadbury Ltd., Nestle foods Pvt. Ltd. and ITC Ltd.” is the bona fide work of Ms. Payal Trivedi who carried out the research under my supervision. I also certify further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.
Signature of the Faculty Guide
(Prof. Mitesh Jayswal)
(Associate Professor)
Signature of the Head of Department
(Prof. (Dr.) BhavinPandya)
3. Students’ Declaration
I, Payal Trivedi hereby declare that the report for Summer Internship entitled “The perception of the retailers & towards the various display strategies implemented by selected FMCG companies, Namely; namely; Hindusan Unilever Ltd., Proctor & Gamble Ltd., Cadbury Ltd., Nestle foods Pvt. Ltd. and ITC Ltd.” is a result of our own work and our indebtedness to other work publications, references, if any, have been duly acknowledged.
Place: Kadi
Date: (Payal Trivedi)
4. Preface “Experience is the best teacher”. The saying has played a guiding role in the infusion of the project report as a part of summer project after first year of Master of Business Administration (M.B.A) program of the Gujarat Technological University. The infusion gets a special consideration and importance to the program as it allows a student as exposure to the real business life.
Management learning remains incomplete without a test of real business life. Thus theoretical knowledge is not enough for management students; practical study holds an important place. Our knowledge remains incomplete without practical aspect.
By this I come to know about different areas and my knowledge is also enhanced. For this study I have selected reputed company in the Beverages Industry which i “PepsiCo India Holdings Pvt. Ltd.”. Today in this era of competition, every company requires those valuable data which put them above their fierce competitors, retailers, and media etc. if anyone has to study all of them there is only one way and that is “market research”. I have also assigned to do a market research on The perception of the retailers towards the various display strategies implemented by selected FMCG companies, Namely: Hindustan Unilever Ltd., Proctor & Gamble Ltd., Cadbury Ltd., Nestle Foods Ltd., ITC ltd.” “It is indeed a golden opportunity for me to present this report and indeed a matter of esteem honor itself. ”
5. Acknowledgement
From the beginning, I like to thank the GOD for giving me this wonderful opportunity to work with the PepsiCo India Holdings Private Ltd. for the Summer Internship Project. And later my parents and brother because, they believing in me.
Then comes, GUJRAT TECHNOLOGICAL UNIVERSITY, through its help I get a chance to improve the Practical knowledge of mine by analyzing “The perception of the retailers & pre-sales representatives towards the various display strategies implemented by selected FMCG companies, Namely; Hindustan Unilever Ltd., Proctor & Gamble Ltd., Cadbury Ltd. Nestle Foods Ltd., and ITC ltd.”. Later, I would like to sincerely thank my project guide Mr. Dinanath Pai(General Manager Sales Development– Gujarat Unit) and I would also like to thank Mr. Tapan Joshi(Customer Executive),and all the Pre-Sales Representitives of the Nisarg Distributor because of their help I was able to approach the retailers of the displays easily.
Then, I am grateful to Head of Department, Prof. Bhavin Pandya as he personally help me to contact with the company and my mentor Prof. Mitesh Jayswal and because of their helps & supports and the guidelines, I can able to make my Project-Report of PepsiCo India Holdings Private Ltd. successfully. Finally, I would like to thank each & every staff members of my college for the co-operation given by them to make my report successfully.
With a deep sense of gratitude I express my thanks to all those who have been instrumental in the development of the project report. I am also indebted to all lecturers, friends and associates for their valuable advice, stimulated suggestions and overwhelming support without which the project would not have been a success.
6. Executive Summary
The FMCG industry is a low-margin business. Volumes hold the key to success in this industry. That is why the industry places so much emphasis on marketing. FMCG majors fight out in the marketplace to reach out to the masses and compete with brands in similar product categories. Fast Moving Consumer Goods companies need to rationalize costs, invest in brand building and offer more value-added products. That is the recipe for success in the competitive domestic FMCG industry.
So, as a part of my research work, I have analyse the perception of the retailers and the sales –representatives regarding the Display system implemented by the selected FMCG companies, Namely; Hindustan Unilever Ltd., Proctor & Gamble Ltd., Cadbury Ltd., Nestle Foods Ltd., ITC ltd.”
For that I have surveyed ten outlets of each of the above mentioned companies in Ahemadabad city. For this purpose I have applied exploratory research method and the research instrument was Questionnaire. I have used most of open ended questions in it. I have also gone through literature review with help of secondary data including journals, book sections and various webpages regarding the benefits of the retailers from the Display System and regarding problems of retailers with display system.
During the data collection process , I came to know that ITC is providing Maximum benefits as return on the display system to its retailers compare to above mentioned other companies. Other than this, I also came to know that, in all companies, the display related work is being carried out by the third party that is called the marketing companies. The super visor of the these marketing companies are having the Planogram of the present display. And according to that the merchandise of the company will place the products at their display and its audit is carried out by the company on weekly, fortnightly, monthly and on quarterly basis which is based on the purchase quantity and the type and size of the display.
The return on display is paid in either cash or in the form of goods which is being deducted from the Bill at the end of the particular time limit.
7. The rules and regulations of all these companies vary but the criteria for the rules and regulations mainly are to maintain the purity and charging at the display, target purchase quantity, visibility and the maintenance.
The planogram of the company is possessed by the supervisor of the marketing and there are regular visits of the merchandiser of the marketing company for arranging and maintaining the Display so the retailers don‟t have much idea regarding this thing as the but I luckily get one planogram which I have included in annexure
The common problems of the retailers towards the display system which I came to know are as follows.
Many retailers face the problems regarding the Irregularity in payments on the display. They feel that, the company is not deducting the rent on the display in time from their purchase bill.
The Service related problems like; as the stock is not receive as per the order, the delivery van is not come as per the promise given by the sales person which is necessary to place the products at the display.
The Shortage of stock is being found by the retailers specifically, for the successful products like, Kissan tomato ketch-up, cheese spread, Dove, dairy milk, Maggi etc. is generally face by the retailers.
8. INDEX
S.r
No.
Sub s.r. No.
PARTICULAR
Page
No.
PREFACE
I.
ACKNOWLEDGEMENT
II.
EXECUTIVE SUMMARY
III.
IV.
1
INTRODUCTION OF THE DISPLAY SYSTEM
1.1
The Concept of Display Strategy
01
1.2
History of the Display system
01
1.3
Importance of retail display in competitive market
03
1.4
Benefits of retail system
04
1.5
The Concept of Display case
05
1.6
Types of Display in Retail Outlets
05
1.7
Factors affecting to the retail Display Strategies
07
2
LITERATURE REVIEW
2.1
Literature Review related to the benefits perceived from the display system
09
2.2
Literature reviews related to the problems or difficulties found with the display system
11
3
RESEARCH METHODOLOGY
3.1
Objectives of the Study
13
3.2
Scope of the study
13
3.3
Research methodology
13
4
Analysis
4.1
Analysis of the general questionnaire
14
4.2
Analysis of the Specific company wise
19
5
FINDINGS
59
6
CONCLUSION
60
10. Chapter-1 Introduction of the Display System
1.1 The Concept of Display Strategies:-
Creating an attractive product display can draw the customer in, promote a slow-moving item, announce a sale, or welcome a season. If your store front is fortunate enough to feature one or more windows, then you have one of the most proven (and least expensive) forms of advertising at your disposal.
Some stores located in a mall or other structure may lack windows, but don't despair. There are many places throughout the store to build beautiful displays.
1.2 History of the Display System:-
In our current, consumer-oriented culture, people do not shop merely to obtain items they need, but also to satisfy their wants. Frequently, shopping does not even involve making a purchase. For consumers, window-shopping has become a popular pastime. Visual merchandisers create "miniature worlds" for merchandise in an effort to attract the attention of consumers, draw them into the store and keep them coming back in the future. Despite the advanced techniques seen in visual displays, visual merchandising is not a new concept or art. As early as the 18th century, merchandise was staged in interesting and unique arrangements to attract consumers.
Prior to the late 18th century, when the contemporary methods of visual merchandising began to evolve, store owners and managers cared little for the appearance of their stores and the presentation of merchandise. Very little merchandise was displayed within the store. Rather, a customer would enter the store and speak with the retailer, who would then present merchandise that was kept in a back room. "Sales talk" and an ability to persuade were very important in convincing a customer of the quality of a product and making a sale. The evolution in store design brought about a new "process" of shopping. It was no longer a verbal engagement between retailers and customers, but now a "sensory experience". The first step in the evolution of store design occurred when small stores began to display their merchandise openly to the public, instead of keeping it stored in back rooms. Eventually, the deliberate displaying of goods became an important tool for retailers. What was once
11. unattractive stores that were not meant to visually appeal to consumers, slowly became exciting shopping venues.
Saving labour is one of the corner stone‟s for stores to remain competitive. As a consumer we see this by the increased use of self-scanning and self-check-out. But behind the scenes, Display provides a whole set of solutions that simplify every day store work.
It is common knowledge that a fully fronted shelf will sell better than a shelf that is not. When he can provide solutions that both improves store presentation, and at the same time saves remerchandising time, investment decisions become easy. So, ultimately, A display device is an output device for presentation of information in visual or tactile form (the latter used for example in tactile electronic displays for blind people). When the input information is supplied as an electrical signal, the display is called an electronic display.
Following are the main 4 main categories of Sales Drivers – elements which affect the rate of sale of a product:
Distribution
Availability
Visibility
Promotion
12. Distribution
DAVP is a pyramid, with D for Distribution at the base. Suppliers agree an assortment with retailers, varying at individual product level according to the store type or size. Without Distribution the product is simply not on sale and it is therefore the primary sales driver.
Availability
The supplier works with the retailer to assure continuous availability of the product, by optimizing both organizations’ logistics and operations functions.
Visibility
Manufacturers and retailers typically work together to produce a planogram or map of the fixture showing how the product will be displayed, and how this varies by outlet type and size.
Promotion
If a product is in regular distribution, continuously available and easily seen by the consumer, it is likely that a promotional event will produce a sales increase.
1.3 Importance of Retail Display in competitive marketplaces:-
Research on purchase behavior in the US reinforces the importance of in-store advertising solutions given that the majority of buying decisions are made at the point of sale. As new products are released to the markets every day, creative display solutions are the key element to promote your brand. According to POPAI (Point of Purchase Association International) retail displays account for around 60% of total purchase volume made in-store.
An inviting store environment that includes attractive retail display design significantly affects shoppers' perception of merchandise quality and price level tolerance. It is proven that a pleasing shop atmosphere with a professional employee image build customer trust and encourages visitors to stay longer, visit more regularly and purchase more. This is one of the most important efforts to make to establish differentiation from competitors and ensure higher margins.
13. 1.4 Benefits of Retail Displays:-
Retail display solutions can have many beneficial effects if you understand principals of modern store design, you know which type of display you would like to use and at which position you want to place it. Retail fixtures have a huge impact on consumer decisions. More likely shoppers will be attracted to a well presented product and are willing to accept the price for a higher value they perceive. Not only will a retail display increase your products' sales potential and stimulate impulse purchasing, it also will secure your bottom line profits. Keep your brand uniform. Retail displays allow you to keep a consistent brand image across a broad range of categories and formats. If you market your brand in many different stores, then it is inevitable to create great unified display design for your product. Target your customer base. Understanding the special taste and expectations of a customer demographic, you can effectively use custom retail display designs to attract a targeted customer base and influence the way they perceive your brand. Sell by teaching. Use carefully printed graphics and signs to accentuate an items feature. Inform your customers about the exclusive benefits that your product offers. Because of the sequencing in the arrangement, Salesmen get the idea of the quantity available with the retailers in his outlet. so, it is time-saving and money-saving system.
14. 1.5 The concept of the Display Case:-
A display case (aka showcase or display cabinet) is a cabinet with one or often more transparent glass (or plastic, normally acrylic for strength) sides and/or top, used to display objects for viewing, for example in an exhibition, museum, house, in retail, or a restaurant. Often labels and/or prices are included with the displayed objects, providing information. In a museum, the objects are normally part of the museum's collection. In retail, the objects are normally being offered for sale.
A display case may be freestanding on the floor, may be smaller and mounted on the wall, or may be hanging from the ceiling. Display cases are typically made by specialist companies with a background in woodworking or welding, and come in standard sizes or often are custom order. Display cases are often designed with security in mind and are normally lockable. They also are made in variety of styles, shapes, and materials as available at a store fixture supplier.
1.6 Types of Displays in the Retail Outlets:-
(1) Window Display.
(2) Hardware Display in the form of hooks & peg hooks.
(3) Counter Display.
(4) Other sub types of Display.
(1)Window Display:
A display window (most commonly called shop window (British English) or store window (American English)) is a window in a shop displaying items for sale or otherwise designed to attract customers to the store. Usually, the term refers to larger windows in the front façade of the shop. Display windows at boutiques usually have dressed-up mannequins in them.Putting a window display of merchandise in a store's window is called "window dressing", which is also used to describe the items displayed themselves. As a figure of speech, "window dressing" means something done to make a better impression, and sometimes implies something dishonest or deceptive.
(2) Hardware Display in the form of hooks & peg hooks:-
15. Pegboard hooks for perimeter displays, gondolas, and pegboard. Palay Display also carries Break Resistant Nylon Pegboard Hooks. Our standard pegboard hooks come in lengths from 2" to 12", super duty pegboard hooks as well as double loop pegboard hooks for added stability, and short "J" hooks and "L" hooks, which lock into place on the pegboard. These pegboard hooks can help the company to complete all your pegboard displays.Pegboard hooks for perimeter displays, gondolas, and pegboard. Palay Display also carries Break Resistant Nylon Pegboard Hooks. Our standard pegboard hooks come in lengths from 2" to 12", super duty pegboard hooks as well as double loop pegboard hooks for added stability, and short "J" hooks and "L" hooks which lock into place on the pegboard.
(3)Counter Display:-
Display Warehouse has all sorts of countertop displays to showcase the wares to potential customers. May be as a retailer, he/sheis looking for an acrylic display case to show the customers some of the company‟s items or may be need a brochure display holder with an acrylic sign holder to present some magazines or maps of the local area. Whatever your needs, whether its acrylic displays or jewelry displays, Display Warehouse can help the retailers as well as salesman to find exactly the items you need. Check out our vast selection of displays, and we‟re sure you‟ll find the right countertop display or acrylic display case will definitely make the store look great.
(4) Other type of Display:-
During the data collection I found some other types of the displays like; Rack Displays and the Hygiene Corner which is generally found in Medical stores of the Nestle for its baby powder. The same way, the Rack Displays is also found in the retail store for the products like, Noodles, shampoos etc.
16. Factors Affecting To the Retail Display Strategies:- Remember retailers own the space, even if you end up paying a subsidy, space in retail is scarce. Optimize the space – think product storage & additional shelf space not just product demo. ROI is king - think Turnover / m2 used. At the end of the day aren‟t you in it for the same reasons = to sell more products. Try to make retailers life easier = address their concerns – How to sell your products / and how to sell more of it. Your display is a silent sales man. It can also become an education tool to the sales people in the store and show them how to sell your product. Think modular / changeable / mobile. Remember nobody wants a piece of decor forever. Stores are an ever changing environment, refreshing the layout is always good. If your display is getting in the way of the retailer‟s operations it will end up in the bin or at the back. This should force you to think about telling a story, and come
up with regular upgrades and refreshes. Think location, make sure you grab appropriate locations (beware of shelf contagion issues – they may be products you do not want to be next to). Think foot traffic and circulation within the store. Think visibility (and try not to obstruct visibility – retailers can be very itchy about line of sight). Adopt the snowball strategy. Setup trial locations, and use the results to sell the setup to others. Retailers can be very jealous of each other‟s, it can block you but it can also work in your favor. Prove your worth first and replicate. Also if you do not get the best location right away, you can still re-adjust and improve your next sites. Get accepted first. And finally do not think your work stops once you have setup your display locations. It does not... keeping them clean, tidy and up to date is critical... making sure the material is aging properly against the day to day grind. Nothing worse than a broken or half working display. A sales person from the company should sure you have the resources to re-visit and maintain your displays on a regular basis.
18. Chapter-2Literature Review
2.1 Literature Reviews related to the Benefits perceive from the Display System:-
As per Agee and Inman “A billboard on a highway, except that it must attract more than the attention of the passer-by. It must stop them in their tracks and make the sale” (Agee, 1998).Many customers seem to interpret ISD as signals or cues of a good deal ( Inman&Agee,1990 1998 respectively).
Studies in private sector journals indicate that point-of purchase stimuli, especially vibrant visual images such as those on cigarette packaging, encourage unplanned purchases. One study found four out of five purchase decisions are made while the shopper is in the store. Another study found that 27% of consumers bought unplanned items because of in-store displays. Seventy to eighty percent of decisions are made in the store; so appealing packaging may have considerable influence over purchase patterns (McCarville, 1999).
In Corstjens & Doyle, and Grewal‟s model, demand for each product is a function of own- and cross-space elasticity (rather than price elasticity). Thus, the amount of space allocated to each product determines the demand for all products. The model seeks to maximize the profits of a retailer subject to a capacity limit on total shelf space (which equates to considering a single shelf) and upper and lower bounds on individual product quantities. Into the moderating factors of ISD could improve our understanding of how displays work and offer useful guidelines to retailers and manufacturers for developing in-store marketing plans (Corstjens & Doyle, andGrewal 1981,2009).
Displays highlight specific products, such as by adding signals or marks (e.g., tags), changing the presentation layout (e.g., special storage method), or presenting the product in a different, often more isolated area of the shelf or store (e.g., end-of-aisle displays). According to the psychological and consumer behavior literature, these changes in the store environment attract attention and stimulate exploratory behavior(Babin, 1995).
Many customers seem to interpret ISD as signals or cues of a good deal (Inman, 1990).
19. According to Dreze &Babin, product locations and facing areas can influence consumers „attentions and thereby their purchase decisions. Previous research distinguishes two groups of consumers who differ in their self-regulation tendency and sensitivity to environmental stimuli (Dreze &Babin, 1994,1995).
POP acts as a surrogate salesperson. It has been found that a high level of brand awareness does not always translate into sales. Shoppers do take into consideration the information they acquire in stores, in addition to relying on out of store communication (Underhill P, 1998).
Another nonlinear model is provided to suggest that demand is a function of the amount of displayed inventory and the space elasticity of the product (Bai and Kendall 2005).
20. 2.2 Literature Reviews related to the Problems or Difficulties found with the Display System:-
Displays do not allow for a direct and detailed comparison of the displayed product with alternative items in the assortment, which complicates the evaluation and risks a loss in utilitarian value (Arnold, 2009).
Previous research indicates that advertising clutter substantially reduces the effectiveness of displays, especially when a high degree of similarity marks the simultaneously displayed ads (e.g., product type, advertising claims) (Anderson, 2001).
For in-store marketing instruments such as ISD that mainly attract attention but do not provide a real value advantage, category expansion effects should be weak or insignificant (Bell, 1999).
For instance, a recent study regarding milk sales in New York showed that a seven percent increase in milk sales could be realized by effective shelf management techniques, including increasing the visibility of products (Chung, 2007).
According to latest research reported by POPAI (Point of Purchase Agency International) most of the consumers are making their purchase decisions at the point of purchase. They estimate that over 60% of total purchase is attributed to retail displays as the major promotional element in store (Tom).
The most important aspect of successful in-store displays is for retailers to understand their customers and their habit (Terrazas, 2008).
Shopping trolleys designed to accommodate kids require strategic trolley height displays that will catch the children‟s attention because children play a big role in shopping trends (Terrazas, 2008).
Strategic displays can then be devised that help to increase sales especially through unplanned purchases by consumers. One strategy may be to identify the commonality of
21. goods bought by list-buyers and then attractively display complementary products next to these common products (Crispen, 12 June, 2009).
Advertising attracts; but the success of all communication efforts in many cases depends on the last five per cent of the effort which manifests itself at the POP just before the consumer chooses to buy, rather than the 95 per cent that preceded it (Quelch J and Cannon- Bonventre K, 1983).
Visual merchandising also induces shoppers to stay at the retail outlet for a longer duration
Leading to increased spending (Donover, Rossiter, Marcollin and Nesdale, 1994) .
All of the existing shelf-allocation models consider shelves in one-dimensional (width) space only. As a result, their focus is on the number of product facings while ignoring the stacking process (thus, facing area and multiple display orientations) as retailers‟ decision variables. However, that significantly abstracts away from the reality of retailers‟ decision context. The model includes own product space effects and demand-related marketing variables but ignores cross-elasticity in demand. To guarantee integer valued allocation quantities, the shelf is broken into “slots” such that each product‟s size is a multiple of the slot sizes. This is the only model to address the idea of stackable products, although hit does not allow for multiple display orientations or joint price optimization Zufryden (1986).
22. Chapter-3 Research Methodology
3.1 Objectives
To find out which types of Display strategies used by the mentioned FMCG Companies
To study the rules and regulations for display system and check its implementation level
To study the perceived benefits of current display system to the retailers.
3.2 Scope of the Study
To analyse the Display System of 10 unorganised and semi-organised Retail Outlets of each mention company in the Ahmadabad city.
3.3 Research Methodology:-
Research Type:-Applied Research
Research Design: - Exploratory & Conclusive-Descriptive-Cross-sectional.
Data Source: - (1) Secondary Data: - The data can be gather from the Reference Books, Articles and Journals. And the official websites.
(2) Primary Data: - The Data gather by the Interviewer Administered Questionnaire.
Research Instruments: - Closed & Open ended Questions has been developed with the help of available literature.
Mechanical Observation (photographs/snapshots)
Sampling Method: - Non- probability technique.
(i)Convenience.
Contact Method: - (i) Personal Interview.
Sampling Units: - 10 Retailers of the each above mention FMCG Companies.
Sampling Area: - Ahmadabad city, Gujarat.
Duration: - 6-8 Weeks.
23. Chapter-4 Analysis
4.1 Analysis of the General questionnaire
1) The type of outlets which are being surveyed.
TYPE OF Outlet
Frequency
Percentage
Convenience
12
35.29%
Eatery
2
05.88 %
Grocery
20
58.83 %
Interpretation:-
The maximum display of the selected FMCG Companies ,is available at the grocery shop in the market.
Then comes the convenience store where the medical stores & Pan parlous are having the displays of the selected FMCG Companies.
And Kabhi B and another one outlet where the display of the above company can be found .
0
5
10
15
20
Convenience
Eatery
Glocery
12
2
20
Types of Outlet
24. 2) From the below companies, How many companies’ products are available at the outlets?
Company
Products
PERCENTAGE
HUL
24
17.91 %
P&G
22
16.42 %
Cadbury
32
23.89 %
Nestle
30
22.39 %
ITC
26
19.40 %
Interpretation:-
The Ninety four per cent of the total outlets are having the products of Cadbury which is the highest in the selected FMCG Companies.
Then comes, Nestle which gets the second largest position in availability of the products at the display.
The products of the ITC, HUL, P & G are also available in the outlets respectively.
0
10
20
30
40
HUL
P&G
Cadbury
Nestle
ITC
24
22
32
30
26
Products
25. 3) Currently, the company’s/companies’ display scheme, is /are available at the outlets.
Company
Available Displays
Percentage
HUL
13
16.46 %
P&G
11
13.92 %
Cadbury
17
21.52 %
Nestle
21
26.50 %
ITC
17
21.52 %
Interpretation:-
In the market survey, I found that, currently the display scheme of the Nestle Foods Private Ltd. is maximum available at the outlets.
And the display scheme of P & G is very less in terms of the availability. It is highly available at the medical stores.
0
5
10
15
20
25
HUL
P&G
Cadbury
Nestle
ITC
13
11
17
21
17
Available Displays
26. 4) The type of the display schemes implemented by the selected FMCG companies.
Types of Display
HUL
P & G
Cadbury
Nestle
ITC
Window Display
12
7
13
19
16
Hook Display
4
5
5
11
3
Counter Display
1
2
15
2
0
None of these
0
0
4
1
0
Interpretation:-
As above said, large number of the displays are given by Nestle in the current market, in which the Window display is available in the larger part the Hook display, Counter Display etc. are located on the respective basis.
Then, comes, ITC on that display scheme a person can only find two types of the displays as Window Display and Hardware Display in the form of Hook & Peg Hook respectively.
Then comes, Cadbury where you can find all types of displays but, less than the ITC. In Cadbury, Counter Displays are available in higher quantity, then window display is more located. And then, Hook display & Other type of display like, Visi.
0
2
4
6
8
10
12
14
16
18
20
HUL
P & G
Cadbury
Nestle
ITC
window Display
Hook Display
Counter Display
None of These
27. Then comes, HUL in which very less number of the display can be seen. Out of these, window display of the company are more located as compare to Hook Display & Counter Display.
At last, the display scheme of P & G, which is currently seen in very less number of the outlets specifically in medical stores where window display are in the larger quantity then comes Hook display and later Counted display of the company.
28. 4.2 Analysis - specific company vise
Section-1 Hindustan Unilever Limited:-
The glimpse Of The Types Of The Display system:-
Window Display:-
Vaseline Body Lotions
Dove Shampoos
Kissan sauce & jams
Shampoos
Shampoos
Kissan sauce, cheese spread & jams.
29. Lifebuoy Hand wash
Ponds White Beauty & Lifebuoy Hand wash
Pepsodent Toothpaste, Taj Mahel Tea& Vaseline
Ponds Face washes
Shampoos- Dove& Sunsilk
Vaseline Body Lotions
30. Hardware in the form of Hook & Peg-Hook Display:-
Rin Detergent Powder
Dove Shampoos
Shampoos
31. The benefits to the retailers
It is found that, some of the retailers receive the fixed rent on the Window Display of the Shampoos, Ketch- ups, Body Lotions etc. it is vary as per the Sales Capacity of the retailers.
While the remaining retailers receive the discount in the form of percentage of the total targeted purchase quantity of the specific display products.
The rent or the Discount on the Display is generally given on the quarterly basis by deducting the prescribed amount from the bill of the retailers.
The rent on the display generally found in the range of Rs.100 to Rs.600 p.m. for the quarterly basis.
It is generally vary on the basis of the products, sales capacity of the retailers, visibility of the display, size of the display, purity1 level and on the achievement of the targets which is predetermined in the form of targeted purchase quantity of the Display‟s products.
On the Window Display with the Hook Display of the Shampoos like; Sunsilk, Dove, Clinic All Clear etc. the retailer receives Rs.600 p.m. for the quarterly basis, which is frequently found during the field work.
On the permanent Soaps‟ Display, retailers receive 2 per cent on the purchase quantity of Rs.15000 which is in the form of the sales target for a quarter or gets the fixed rent of Rs.150-Rs.250 p.m. on the window display.
On the window display of the Kissan Ketch-ups, Cheese Spread, Jams 3 retailers from the more than 10 retailers gets the 5-7 per cent on the MRP of the purchase
1 Purity means, at the display, only company‟s product must be available which is the current display item for the company.
32. quantity for the quarterly basis which is amounted on an approximately around Rs.525.
The big retailers (who have the higher capacity of the sale) of the companies will receive Rs.1000 extra or other benefits of the trade promotional schemes if he possesses 5 or more window displays in their outlets.
As per the views of the retailers, the sale of the particular products of the display is comparatively become more than the other products of the company.
33. The Rules and Regulations to the retailers
To get the Display of the Company, retailers need to follow the rules and regulations or the conditions given by the company. Following are the rules and regulations or conditions generally given by the HUL for the display system to its retailers:-
From the all retailers 1 common thing receive while asking them regarding the rules and regulations or conditions is to maintain the purity level at the display.
The secondly, prescribed stock must be placed at the display according to its planograms.
The retailers need to purchase the goods which is the equivalent to the targeted purchase quantity which is varying on the basis of sales capacity of the retailers.
It is also vary on the basis of the products, visibility, purity level which is predetermined in the form of purchase quantity of the Display‟s products.
The size of the window for the display must be situated as per the norms of the company.
If the products at the display didn‟t found as per the planogram, the negative marking is done by the Company on the incentive given to that particular retailers.
The target for the purchase quantity will vary from the Rs.10, 000 to70, 000 on the quarterly basis. This is again differing on the basis of the type of the display and also on the type of the products which is place on it. The sales
34. capacity of the retailers will also become the important factor to target the purchase quantity.
For the shampoos‟ display 24 bottles of the each SKU should be available at the display.
For the Ketch-ups and cheese spread etc. 10 bottles of the each SKU require for the display as per the rules mention by the company.
35. Planogram for the Display System
In the company, display related work is carried forward by the 3rd party called; Marketing Company on behalf of the company. The supervisor of the company will have the Planogram2 of the Display which is change after the certain period of time.
So, retailers as well as salesmen have no idea regarding the planogram of the particular display. As the merchandiser visit the outlets on weekly, fortnightly or monthly basis to place the products on the display as per the planogram. This time duration will also vary on the basis of the requirement of the arrangements and maintenance of the products at the display and the sales capacity of the retailers.
The audit is being carried out by them on a monthly basis as per the norms in which the snapshots of the current display is carried forward by the company‟s supervisors to the Head Office and according to that, the return on that display is being delivered to that particular retailer of the company and incentives also given to its merchandiser for his/her great duty. Though the irregularities is being found by the retailers of the company.
The planogram is based on the following criteria like;.
The visibility is needed to be maintaining as per the norms of the display.
Purity level is required of at least 80% of total quantity at the display.
Each SKU of the products must be placed on the present display.
The required number of the stock level needs to be purchased as per the display norms to place it on the display as per the planogram. For e.g.; 24 bottles of the all SKUs of Sunsilk and 10 Bottles for Kissan Ketch-up, and cheese spread and 3 soaps of each flavors of Lifebuoy.
2 Planogram means, sequencing of the products at the display.
36. Problems related to the Display System
Sixty per cent retailers don‟t have any problem with the Company Following are the some common problems often face by the retailers from the company. So, as per their view, it‟s the successful company which is dealing with the Display system. And from the view point of the remaining forty per cent retailers, following are the some of the common problems which are being face by the retailers.
Many retailers face the problems regarding the Irregularity in payments on the display. They feel that, the company is not deducting the rent on the display in time from their purchase bill.
The Service related problems like; as the stock is not receive as per the order, the delivery van is not come as per the promise given by the sales person which is necessary to place the products at the display.
The Shortage of stock is being found by the retailers specifically, for the successful products like, Kissan tomato ketch-up, cheese spread, Dove etc. is generally face by the retailers.
The shortage of Cheese spread is frequently found by the retailers.
37. Section-2 Proctor & Gamble Pvt.Ltd:-
The glimpse Of The Types Of The Display system:-
Window Display:- The glimpse Of The Types Of The Display system
PANTENE Shampoos
ARIEL Detergent Powder
PANTENE Shampoos & ARIEL Detergent Powder
PANTENE Shampoos
PANTENE Shampoos
Shampoos
38. PENTENE and Head & Shoulder Shampoos
Gillette’s Products
Pampers
VICKS Vapor rub
Sanitary Pads
Gillette Body Spray
39. Hardware in the form of Hook & Peg-Hook Display:-
ARIEL Detergent Powder
Tide Detergent Powder
Oral-B Tooth Brush
40. The benefits to the retailers
It is found that, some of the retailers receive the fixed rent on the Window Display of the Shampoos, Detergent Powder Vicks, Pampers, sanitary pads etc. and on the hook display of Shampoos, Detergent Powders, Tooth brushes, Gillette shaving cream and its blades etc. it is vary as per the Sales Capacity of the retailers.
While the some other retailers receive the discount in the form of percentage of the total targeted purchase quantity of the specific display products.
The benefit is given by the company in the form of cash discount or in the form of cheque or in the form of goods given as return on the display by the company.
On the peg hook or hook display of the Gillette Blades, the retailer gets Three per cent of the total purchase quantity, which must be of Rs. 5000 at least for the quarterly basis.
On the window display of the products like; PENTENE, AREIAL, Tide etc. the retailer receives Four per cent on the total purchase quantity which is vary from the 1,00,000 To 3,00,000 for the quarterly basis.
The cash display discount receive by the retailers, on the window display, is vary from Two per cent To Five per cent flat on the predetermined targeted purchase quantity. Which is based on the sales capacity of the retailers. This is again for the quarterly basis.
The fixed rent is also provided by the company in the range of Rs.200 p.m. To 450p.m. for the window display of Detergent Powders, Shampoos etc. for the quarterly basis.
On the window display of the Vicks & Head & Shoulder, the retailers receive Rs.200- Rs.300 and Rs.200 p.m. respectively. This is again for the quarterly basis.
41. On the window display of Pampers & the hook display of Gillette Blades the retailer receives Ten per cent i.e. Rs.200 on the total targeted purchase quantity of the month i.e. of Rs.2000.
The fixed rent given of Rs 8000 p.m. to the permanent member of the company for holding the display for the quarterly basis. The targeted purchase quantity for them will be of at least Rs.1, 25,000 which is again for the quarterly basis.
42. The Rules and Regulations to the retailers
To get the Display of the Company, retailers need to follow the rules and regulations or the conditions given by the company. Following are the rules and regulations or conditions generally given by the Proctor & Gamble Private Ltd. for the display system to its retailers:-
From the all retailers 1 common thing receive while asking them regarding the rules and regulations or conditions is to maintain the purity level at the display.
The secondly, prescribed stock must be placed at the display according to its planograms.
The retailers need to purchase the goods which is the equivalent to the targeted purchase quantity which is varying on the basis of sales capacity of the retailers.
It is also vary on the basis of the type of the products, visibility, purity level which is predetermined in the form of purchase quantity of the Display‟s products.
The size of the window for the display must be situated as per the norms of the company.
If the products at the display didn‟t found as per the planogram, the negative marking is done by the Company on the incentive given to that particular merchandiser as well as retailers.
For the display, 24 bottles of the each SKUs must be purchased by the retailers as per company‟s norms to place it at the display. It is specifically found for the display of the Shampoos and Detergent powders, Vicks vapor rub etc.
43. The target for the purchase quantity will vary from the Rs.5, 000 to70000 on the quarterly basis. This is again differing on the basis of the type of the display and also on the type of the products which is place on it. The sales capacity of the retailers will also become the important factor to target the purchase quantity.
44. Planogram for the Display System
In the company, display related work is carried forward by the 3rd party called; Marketing Company on behalf of the company. The supervisor of the company will have the Planogram of the Display which is change after the certain period of time.
So, retailers as well as salesmen have no idea regarding the planogram of the particular display. As the merchandiser visit the outlets on monthly or quarterly basis to place the products on the display as per the planogram. This time duration will also vary on the basis of the requirement of the arrangements and maintenance of the products at the display and the sales capacity of the retailers.
As per the display‟s norms of the company, the audit is being carried out by them on a monthly basis in which the snapshots of the current display is carried forward by the company‟s supervisors to the Head Office and according to that, the return on that display is being delivered to that particular retailer of the company and incentives also given to its merchandiser for his/her great duty. Though the irregularities is being found by the retailers of the company.
The planogram is based on the following criteria like;
The visibility is needed to be maintaining as per the norms of the display.
Purity level is required of at least 80% of total quantity at the display.
Each SKU of the products must be placed on the present display.
The required number of the stock level needs to be purchased as per the display norms to place it on the display as per the planogram. For e.g.; 24 pieces of the all SKUs of PENTENE, ARIEL, Tide, pampers, Vicks and it will also apply to the sanitary pads.
45. Problems related to the Display System
The sixty per cent of the total outlets which is being surveyed, only face the problems from the company regarding its display system. Following are the common problems which are generally face by the retailers.
As per the view point of the retailers, the displays of the company are in very less number in the market.
It is mostly found only in the medicals.
The service related problem found by the retailers as they claim that, they didn‟t receive the goods as per the order given by them.
The lack of stock is generally found by the retailers as the salesman doesn‟t come on a regular basis.
The return on the display doesn‟t come within predetermined time duration as it is not deducted from the bill, on the regular basis.
Retailers found that, sometimes company didn‟t give cash discount on the display as in place of that goods of the equivalent quantity specifically, which is new in the market, is being provided by the company.
46. Section-3 Cadbury Pvt.Ltd
The Glimpse of the types of the Display System
Window Display:-
Dairy Milk
Bournvita, & Celebration
Bournvita
Bournvita
Bournvita, Gems &Celebration
Celebration
47. Hardware in the form of Hook & Peg-Hook Display:-
Chocolates
Banner with the Chocolates’ Advertisement
Cadbury Balls
Other types of the display:-[Freeze and Counter Display]
Visi
visi3
Chocolates’ Dispenser
3Visi means, Visual cooler or Visual Freeze.
48. The benefits to the retailers
Following are the main benefits receive by the retailers from the Cadbury:-
Fifty per cent of the total outlets are getting the display of the company.
The retailers of the company receive the display discount in the form of the per cent of the total targeted purchase quantity and also get the fixed rent on the window display of the company‟s products. The discount is being deducted either from the bill or the extra goods of that equivalent amount is given by the company.
The display discount is varying between the Two per cent To Eight per cent of the total targeted purchase quantity. it is on the quarterly basis and generally applies to the display of the Chocolates.
The retailer gets Rs.250 p.m. on the window display of the chocolates specifically, Dairy Milk, on the quarterly basis.
The retailers get the benefit of the warranty on the expired stock which is reversible by the company.
The fixed rent on the window display of the company‟s products other than the chocolates is being received by the retailers within the range of Rs.100 p.m. To Rs.400 which is again on the quarterly basis.
The retailers, who have done the Eleven months contract regarding the Display System with the company, will receive the extra display discount in the form of percentage of the total purchase quantity.
49. The Rules and Regulations to the retailers
To get the Display of the Company, retailers need to follow the rules and regulations or the conditions given by the company. Following are the rules and regulations or conditions commonly given by the Cadbury for the display system to its retailers:-
From the all retailers 1 common thing receive while asking them regarding the rules and regulations or conditions is to maintain the purity level at the display.
The secondly, prescribed stock must be placed at the display according to its planograms.
The return on the display is also varying on the basis of the products, visibility, purity level which is predetermined in the form of purchase quantity of the Display‟s products.
The retailers need to purchase the goods which is the equivalent to the targeted purchase quantity which is varying on the basis of sales capacity of the retailers. For the Cadbury, sales targets easily achieved by the retailers.
The size of the window for the display must be situated as per the norms of the company.
If the products at the display didn‟t found as per the planogram, the negative marking is done by the Company on the incentive given to that particular retailers.
For the chocolates display, SKUs generally 24 pieces of the single variety should be available at the display.
The target for the purchase quantity will vary from the Rs.2, 700 to1,00,000 on the quarterly basis. This is again differing on the basis of the type of the display and also on the type of the products which is place on it. The sales capacity of the retailers will also become the important factor for the target of the purchase quantity.
50. Planogram for the Display System
In the company, display related work is carried forward by the 3rd party called; Marketing Company on behalf of the company. The supervisor of the company will have the Planogram of the Display which is change after the certain period of time.
So, retailers as well as salesmen have no idea regarding the Planogram of the particular display. As the merchandiser visit the outlets on monthly or quarterly basis to place the products on the display as per the Planogram. This time duration will also vary on the basis of the requirement of the arrangements and maintenance of the products at the display and the sales capacity of the retailers.
As per the display‟s norms of the company, the audit is being carried out by them on a monthly basis in which the snapshots of the current display is carried forward by the company‟s supervisors to the Head Office and according to that, the return on that display is being delivered to that particular retailer of the company and incentives also given to its merchandiser for his/her great duty. Though the irregularities is being found by the retailers of the company.
The Planogram is based on the following criteria like;
The products can be maintained at the display on the FIFO Basis.
In the dispenser which is itself a part of the counter display, the chocolates are being arranged from top to bottom as per the range & their varieties.
The visibility is needed to be maintaining as per the norms of the display.
Purity level is required of at least 80% of total quantity at the display.
Each SKU of the products must be placed on the present display.
The required number of the stock level needs to be purchased as per the display norms to place it on the display as per the Planogram.
51. Problems related to the Display System
Twenty per cent retailers don‟t have any problem with the Company but, the following are the some common problems often face by the retailers from the company. So, as per their view, it‟s the successful company which is dealing with the Display system. And from the view point of the remaining Eighty per cent retailers, following are the some of the common problems which are being face by the retailers.
Many retailers face the problems regarding the Irregularity in payments on the display. They feel that, the company is not deducting the rent on the display in time from their purchase bill. And also give the chocolates like; Temptation, Bernville etc. which have higher range and rarely demanded by the customers.
The Service related problems like; as the stock is not receive as per the order, the delivery van is not come as per the promise given by the sales person which is necessary to place the products at the display.
The Shortage of stock is being found by the retailers specifically, for the dairy milk worth of Rs.10 & flavors in dairy milk silk.
Replacement related problem is sometimes found by the retailers as the
The shortage chocolates generally face by the retailers at the time of the celebrations like, New Year, Christmas, Diwali, Valentines‟ Day, Rakshabandhan, and on the Friendship Day.
52. Section-4 Nestle Foods Private Ltd.:-
The glimpse Of The Types Of The Display system:-
Window Display:-
Nesquick& coffee mate
Nes coffee
Sauce &Neutralite
coffee & Maggie
NAN PRO
(Baby Powder)
Neutralite, Nestea, Milkmaid &Nes coffee
54. Hardware in the form of Hook & Peg-Hook Display:-
Nestea
Maggie
Bhuna Masala, Nestea,& Maggie Noodles
Maggie
Coffee with clock
Sunrise Coffee
55. The benefits to the retailers
Following are the main benefits receive by the retailers from the Nestle Foods Private Ltd.
Around sixty five per cent of the total outlets are getting the benefits of display from the Nestle Foods Private Ltd for the quarterly basis.
Based on the total targeted purchase quantity, the retailers get the fixed rent on the window display of the company‟s products. The discount is being deducted either from the bill or the extra goods of that equivalent amount is given by the company.
The fixed rent on the window display of the company‟s products is being received by the retailers within the range of Rs.100 p.m. To Rs.1200p.m.which is again on the quarterly basis.
The retailers, who have done the Eleven months contract regarding the Display System with the company, will receive the Display discount within the range of Rs.1200 to Rs.8000 p.m. which is based on the total targeted purchase quantity of around 1,25,000 per quarter and the sales capacity of the retailers. This will also change on the quarterly basis.
The fixed rent received on the widow display of CERELAC a baby powder and on the NAN-PRO, a milk powder of Rs.200-Rs.250 p.m. on the quarterly basis.
Through the impulse buying sales of the displayed products will increase as compare to other products of the company.
56. The Rules and Regulations to the retailers
To get the Display of the Company, retailers need to follow the rules and regulations or the conditions given by the company. Following are the rules and regulations or conditions commonly given by Nestle Foods Private Ltd. for the display system to its retailers:-
From the all retailers 1 common thing receive while asking them regarding the rules and regulations or conditions is to maintain the purity level at the display.
The secondly, prescribed stock must be placed at the display according to its Planogram.
The return on the display is also varying on the basis of the products, visibility, purity level which is predetermined in the form of purchase quantity of the Display‟s products.
The retailers need to purchase the goods which are the equivalent to the targeted purchase quantity which is varying on the basis of sales capacity of the retailers.
If the products at the display didn‟t found as per the Planogram, the negative marking is done by the Company on the incentive given to that particular retailers.
For the display, 24SKUs of the single variety should be available at the display.
The target for the purchase quantity will vary from the Rs.1000 to2, 10,000 on the quarterly basis. This is again differing on the basis of the type of the display and also on the type of the products which is place on it. Thesales capacity of the retailers will also become the important factor for the target of the purchase quantity.
57. The size of the window for the display must be situated as per the norms of the company.
For the Noodles, at least 24 pieces of the each SKU should be available with the retailers for its display.
58. Planogram for the Display System
In all the company, display related work is carried forward by the 3rd party called; Marketing Company on behalf of the company. The supervisor of the company will have the Planogram of the Display which is change after the certain period of time.
So, retailers as well as salesmen have no idea regarding the Planogram of the particular display. As the merchandiser visit the outlets on monthly or quarterly basis to place the products on the display as per the Planogram. This time duration will also vary on the basis of the requirement of the arrangements and maintenance of the products at the display and the sales capacity of the retailers.
As per the display‟s norms of the company, the audit is being carried out by them on a monthly basis in which the snapshots of the current display is carried forward by the company‟s supervisors to the Head Office and according to that, the return on that display is being delivered to that particular retailer of the company and incentives also given to its merchandiser for his/her great duty. Though the irregularities is being found by the retailers of the company.
The Planogram is based on the following criteria like;
The products can be maintained at the display on the FIFO Basis.
In the dispenser of the chocolates which is itself a part of the counter display, the chocolates are being arranged from top to bottom as per the range & their varieties.
The visibility is needed to be maintaining as per the norms of the display.
Purity level is required of at least 80% of total quantity at the display.
Each SKU of the products must be placed on the present display.
The required number of the stock level needs to be purchased as per the display norms to place it on the display as per the Planogram.
59. Problems related to the Display System
Around fifty nine per cent of the total retailers of the survey, having the problem with the company regarding the Display System. Following are the main problems which are generally
face by the retailers from the company.
Many retailers face the problems regarding the Irregularity in payments on the display. They feel that, the company is not deducting the rent on the display is not in time from their purchase bill.
The Service related problems like; as the stock is not receive as per the order, the delivery van is not come as per the promise given by the sales person which is necessary to place the products at the display.
The Shortage of stock is being found by the retailers specifically, for its popular product Maggie.
Replacement related problem is sometimes found by the retailers specifically in the Bhuna Masala as expiry come in near future.
60. Section-5Indian Tobacco Company:-
The glimpse Of The Types Of The Displaysystem:-
Window Display:-
Classic
Sun feast Dark Fantasy & Dream Cream
Gold flakes
Dark Fantacy
Vivel Face washes
Fiama De Vills Soaps
61. Vivel Soaps
Convenience store is renovate with the display of Classic[inner side]
Yippee Noodles
Fiama De Vills Soaps
Sun feast Biscuits
Sun feast Biscuits
62. Hardware in the form of Hook & Peg-Hook Display:-
Classic’s Banner
Convenience store is renovate with the display of Classic[outer side]
Banner of Gold-Flakes
63. The benefits to the retailers:-
Following are the main benefits receive by the retailers from the Indian Tobacco Company.
Around fifty per cent of the total outlets are getting the benefits of display from the Indian Tobacco Company. For the quarterly basis.
Based on the total targeted purchase quantity, the retailers get the fixed rent on the window display of the company‟s products. Generally, the discount is being deducted either from the bill or it is given on cash.
The fixed rent on the window display of the company‟s products is being received by the retailers within the range of R.s200 p.m. To Rs.3000p.m.which is again on the quarterly basis.
On the peg hook display in the form of Banners which is generally of the cigarette brands like; Bristol, Classic, Gold flakes etc. the retailers receive the rent in the range of Rs.800 p.m.Rs.7500 p.m.
The extra return is given by the company on the display is to give points to get the membership of the “master club” card. Generally, the criteria are given for that is to purchase the goods minimum of Rs.250, so that one point is given by the company to that particular retailer. The points are also given on the basis of the type of the products at the display.
The return on the display is also given by the company in the form of which is in the range of two per cent To five per cent of the targeted purchase quantity which is differed as per the sales capacity of each retailer.
For the purpose of the display, company had renovate the whole convenience store on its costs, it is the unique and the biggest amount of the consumption is incurred by the company.
64. The Rules and Regulations to the retailers
To get the Display of the Company, retailers need to follow the rules and regulations or the conditions which are the in the smallest number comparatively. Following are the rules and regulations or conditions commonly given by Indian Tobacco Company for the display system to its retailers:-
From the all retailers 1 common thing receive while asking them regarding the rules and regulations or conditions is to maintain the purity level at the display.
The secondly, prescribed stock must be placed at the display according to its Planogram.
The return on the display is also varying on the basis of the products, visibility, purity level which is predetermined in the form of purchase quantity of the Display‟s products.
The retailers need to purchase the goods which are the equivalent to the targeted purchase quantity which is varying on the basis of sales capacity of the retailers.
If the products at the display didn‟t found as per the Planogram, the negative marking is done by the Company on the incentive given to that particular retailers.
For the display of the biscuits -Sun feast, 36SKUs of the single variety should be available at the display.
The target for the purchase quantity will vary from the Rs.1, 000 to60, 000 on the quarterly basis. This is again differing on the basis of the type of the display and also on the type of the products which is place on it. Thesales capacity of the retailers will also become the important factor for the target of the purchase quantity.
The size of the window for the display must be situated as per the norms of the company.
For the Fiama De vills, at least 3pieces of the each flavor should be purchased by the retailers as the targeted purchase quantity.
The targeted purchase quantity is of Rs. 1, 20,000 To 1, 50,000 for the Tobacco products, it will vary as per the sales capacity of the retailers.
The stock of Rs. 1000 must be available for the display of Yippee Noodles.
65. Planogram for the Display System:-
In the company, display related work is carried forward by the 3rd party called; Marketing Company on behalf of the company. The supervisor of the company will have the Planogram of the Display which is change after the certain period of time.
So, retailers as well as salesmen have no idea regarding the Planogram of the particular display. As the merchandiser visit the outlets on monthly or quarterly basis to place the products on the display as per the Planogram. This time duration will also vary on the basis of the requirement of the arrangements and maintenance of the products at the display and the sales capacity of the retailers.
As per the display‟s norms of the company, the audit is being carried out by them on a monthly basis in which the snapshots of the current display is carried forward by the company‟s supervisors to the Head Office and according to that, the return on that display is being delivered to that particular retailer of the company and incentives also given to its merchandiser for his/her great duty. Though the irregularities is being found by the retailers of the company.
The Planogram is based on the following criteria like;
The products can be maintained at the display on the FIFO Basis.
The visibility is needed to be maintaining as per the norms of the display.
Purity level is required of at least 80% of total quantity at the display.
Each SKU of the products must be placed on the present display.
The required number of the stock level needs to be purchased as per the display norms to place it on the display as per the Planogram.
66. Problems related to the Display System
This is the only company from which the retailers are facing the less number of the problems as compare to other four selected FMCG Companies. Only Ten per cent of the retailers are facing the problem with the company.
Following are the some of the problems which are come in the limelight during the data collection.
The Shortage of stock is being found by the retailers.
The replacement related problems are being found by the retailers near the time of expiry.
67. FINDINGS
From the above analysis of the perception of the retailers towards the display system of the selected FMCG display system, following points come in the highlight which are mention below:-
The companies are perusing the work related to the display to the marketing company. So, the merchandiser is maintaining and arranging the display at the outlets so, retailers have no idea regarding the Planogram of the display.
Generally, The photo copy of the Planogram is available with the supervisor of the marketing company so, it is not available but, luckily I get the planogram of the display system of the Nestle which is mention in the annexure of the Hard Copy.
In the study, I came to know that, the most return is given by ITC on the display of its products to its retailers and the problems regarding that is also very less compare to other mention companies.
I also came to know that very less number of the display is being found by the P& G Ltd. which is generally found at the medical stores.
ITC is the best company in providing the services to its retailers as compare to other mention companies. It also provides the renovation of the convenience store by spending huge amount for its retailers.
In Cadbury. The products specifically Chocolates are placed in the dispenser on FIFO Basis and also according to their range.
The maximum displays are available in the market, it‟s of the Nestle.
In the Display System, HUL‟s service is better as compare to P & G.
Generally, The fixed rent are given on the display of the company or the predetermined per cent of the total targeted purchase quantity as the return on the display.
68. So, ultimately, the Display system is helpful to increase the sales through Impulse Buying.
69. CONCLUSION
Benefits to the Retailers
It is found that, out of the above mention selected companies, ITC is giving the largest return the displays comparatively.
The service related to the display and the delivery of the goods is the best. This company
Will give the Club membership card to the retailers as they are becoming the member of the company and accordingly they get the benefits .
It is found that, some of the retailers receive the fixed rent on the Window Display of the products like, Biscuits, Baby Power, Sanitary Pads, balm, Shampoos, Ketch- ups, Noodles, Body Lotions etc. it is vary as per the Sales Capacity of the retailers.
While the some other retailers receive the discount in the form of percentage of the total targeted purchase quantity of the specific display products. It is varying within the range of 2 per cent to seven per cent. And some retailers will get the benefits of all the types of display tor receive the return.
The rent or the Discount on the Display is generally given either on the quarterly basis or on monthly or yearly basis.
The amount of the display is given by companies by deducting the prescribed amount from the bill of the retailers or place the goods of that equivalent amount.
The rent on the display generally found in the range of Rs.100 to Rs.600 p.m. for the quarterly basis.
The retailers who are having the permanent membership with the company display will get the return on the in Thousands of Rupees of the tempo and also qualified to possess the benefits of the Temporarily executed Trade Promotional Schemes .
70. The expenses related to the renovation of the store are wholly carried out by the company like; ITC. It is the most beneficial for the company.
At the Medical store, Hygiene corner is given by Nestle to place its products for the display, it is the unique benefit given by the company.
The companies like; Cadbury and Nestle, had given the Visi cooler to the retailers who have the larger sales capacity as a part of the display.
It is generally vary on the basis of the products, sales capacity of the retailers, visibility of the display, size of the display, purity4 leveland on the achievement of the targets which is predetermined in the form of targeted purchase quantity of the Display‟s products.
The big retailers (who have the higher capacity of the sale) of the companies will receive Rs.1000 extra or other benefits of the trade promotional schemes if he possesses 5 or more window displays in their outlets.
As per the views of the retailers, the sale of the particular products of the display is comparatively become more than the other products of the company.
Impulse buying will be possible which enhance the sales of the company.
4 Purity means, at the display, only company‟s product must be available which is the current display item for the company.
71. The Rules and Regulations to the retailers
To get the Display of the above mention Companies, retailers need to follow the rules and regulations or the conditions given by the companies. Following are the common rules and regulations or conditions generally given by the HUL for the display system to its retailers:-
From the all retailers 1 common thing receive while asking them regarding the rules and regulations or conditions is to maintain the purity level at the display.
The secondly, prescribed stock must be placed at the display according to its planograms.
The retailers need to purchase the goods which is the equivalent to the targeted purchase quantity which is varying on the basis of sales capacity of the retailers.
It is also vary on the basis of the products, visibility, purity level which is predetermined in the form of purchase quantity of the Display‟s products.
The size of the window for the display must be situated as per the norms of the company the predetermined place which is located by the company.
If the products at the display didn‟t found as per the planogram, the negative marking is done by the Company on the incentive given to that particular retailers.
The target for the purchase quantity will vary on the basis of the type of the display and also on the type of the products which is place on it. Thesales capacity of the retailers will also become the important factor to target the purchase quantity.
For the shampoos‟ display 24 bottles of the each SKU should be available at the display.
For the Ketch-ups and cheese spread etc. 10 bottles of the each SKU require for the display as per the rules mention by the company.
72. Planogram for the Display System
In the company, display related work is carried forward by the 3rd party called; Marketing Company on behalf of the company. The supervisor of the company will have the Planogram5 of the Display which is change after the certain period of time.
So, retailers as well as salesmen have no idea regarding the planogram of the particular display. As the merchandiser visit the outlets on weekly, fortnightly or monthly basis to place the products on the display as per the planogram. This time duration will also vary on the basis of the requirement of the arrangements and maintenance of the products at the display and the sales capacity of the retailers.
The audit is being carried out by them on a monthly basis as per the norms in which the snapshots of the current display is carried forward by the company‟s supervisors to the Head Office and according to that, the return on that display is being delivered to that particular retailer of the company and incentives also given to its merchandiser for his/her great duty. Though the irregularities is being found by the retailers of the company.
The planogram is based on the following criteria like;.
The visibility is needed to be maintaining as per the norms of the display.
Purity level is required of at least 80% of total quantity at the display.
Each SKU of the products must be placed on the present display.
The required number of the stock level needs to be purchased as per the display norms to place it on the display as per the planogram. For e.g.; 24 bottles of the all SKUs of Sunsilk and 10 Bottles for Kissan Ketch-up, and cheese spread and 3 soaps of each flavors of Lifebuoy.
5 Planogram means, sequencing of the products at the display.
73. Problems related to the Display System
Sixty per cent retailers don‟t have any problem with the Company Following are the some common problems often face by the retailers from the company. So, as per their view, it‟s the successful company which is dealing with the Display system. And from the view point of the remaining forty per cent retailers, following are the some of the common problems which are being face by the retailers.
Many retailers face the problems regarding the Irregularity in payments on the display. They feel that, the company is not deducting the rent on the display in time from their purchase bill.
The Service related problems like; as the stock is not receive as per the order, the delivery van is not come as per the promise given by the sales person which is necessary to place the products at the display.
The Shortage of stock is being found by the retailers specifically, for the successful products like, Kissan tomato ketch-up, cheese spread, Dove etc. is generally face by the retailers. The shortage of the goods is being found from the retailers.
74. Bibliography
Agee, T. (1998). Evaluation of tobacco point-of-sale material as advertising.
Arnold, M. J. (2009). “Affect and Retail Shopping Behavior:Understanding the Role of Mood Regulation and Regulatory Focus. Journal of Retailing , 308-320.
Bai, Ruibin and Graham Kendall (2005), “An Investigation of Automated Planograms Using a Simulated Annealing Based Hyper-heuristics,” in Met heuristics: Progress as Real Problem Solvers—(Operations Research/Computer Science Interfaces, Vol. 32), Ibaraki Tosh hide, Nonobe Koji and Yagiura Mutsunori, eds. Berlin/Heidelberg/New York: Springer, 87–108.
Babin, B. J. (1995). “Consumer Self-Regulation in a Retail Environment. Journal of Retailing , 71 (1): 47-70.
Bell, D. R. (1999). “The Decomposition of Promotional Response: An Empirical Generalization. Marketing Science , 504-526.
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Chung, C. T. (2007). Economic Evaluation of Shelf-Space Management in Grocery Stores. Agribusiness , 583–597.
Crispen, M. T. (12 June, 2009). In-store shopping environment and impulsive buying. African Journal of Marketing Management, Vol. 1 (4), 102-108.
Dreze, X. S. (1994). “Shelf Management and Space Elasticity. Journal of Retailing , 301– 326.
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McCarville, R. &. (1999). Point-of-purchase techniques and their influence on tobacco consumption: A review of literature in private sector journals. University of Waterloo, , Waterloo, Ontario.
Terrazas, M. (2008, august 5). In-store displays that work. The Baker. Retrieved from http://www.thebaker.co.za
75. Tom, T. (n.d.). Retail Display Benefits - Sell More With Retail Fixtures. Retrieved from http://ezinearticles.com: http://ezinearticles.com/?expert=Tran_Tom
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http://retail.about.com/od/storedesign/a/create_display.htm
http://www.redcliffe.co.uk/point_of_sale/boost-your-sales.htm
http://www.redcliffe.co.uk/point_of_sale/display-counters.htm
http://www.arneg.com/?gclid=COD494CXw7ECFUsb6wodjTEAUA
http;//www.originalconnection.com/index.htm
http://www.displaywherehouse.com/racks.sp
76. ANNEXURE - I-List of the outlets
(1) Aarasi Parlor
(2) ShriSai Parlor
(3) ArihantKirana Store
(4) Siona seven 11 store(Drive in)
(5) Siona seven 11 store( Bodakdev)
(6) Moonlight Namkeens and Bakery Items
(7) Moonlight Traders
(8) Special Groceries
(9) Chandramauli Provision Store
(10) Satyam Provision Store
(11) Daily Necessities
(12) Bhramani General Store
(13) New Mahavir Trading
(14) Shree Navdurga General Store
(15) Patel Parlor
(16) Cream Corner
(17) Krishna Shop
(18) Swaminarayan Dairy Parlor
(19) Paras Store
(20) Kamal Bakery
(21) ParshvanathKirana
(22) Radhika general store
(23) Shri Krishna General store
(24) Ambica Medical Store
(25) Shreenath Store
(26) KABHI B
(27) Medilink Medical store
77. (28) Rajasthan Medicines
(29) BhagvatiMedical store
(30) New Pramukh Pan Parlor
(31) Heera cold-drinks
(32) Mallinath Store
(33) Hariom General Store
(34) New Ilaj Medical Store
(35) Umiya Pan Parlor
(36) JagdambeyKirana Store
(37) Jayshri Pan Parlor
(38) Arihant Cold-drinks
(39) Bhakti Medical Store
(40) Mahavir General Store
(41) Shital Parlor & Provision Store
(42) Raj Pan Parlor
(43) HarsiddhKirana Store
(44) Natraj Bakers
(45) Trupti Store
(46) ShyamSundar Pan
(47) Nilkanth Dairy Parlor
(48) Jain Business
(49) T.K. Parlor.
(50) Amikunj Provision Store.
78. Annexure-II-
Questionnaire
QUESTIONNAIRE-I For Retailers
Que. No: _____
Dear Sir /Madam,
I am a student of M.B.A.programme from S.V. INSTITUTE OF MANAGEMENT, KADI. As a part of our curriculum I required to do a research. I am doing a research on “The perception of the retailers towards the various display strategies implemented by selected FMCG companies, Namely; Hindustan Unilever Ltd. Proctor & Gamble Ltd., Cadbury Ltd. Nestle Foods Ltd., ITC ltd.” I request you to answer the following question and help me in my work. I ensure you that the answer given by you will be kept confidential and use for academic purpose only. (Use (√) tick to show your opinion)
___________________________________________________________________________ _
Name of Outlet:-_________________________________
Contact No:-_____________________________________
Outlet ID:-_______________________________________
Respondent’s Name:-________________________________
Respondent’s Designation:-____________________________
Type of Outlet
[ ] Convenience [ ] Eatery
[ ] Grocery
Q-1 From the below mentioned companies, how many companies product are available at your store?
[ ] Hindustan Unilever Ltd. [ ] Proctor & Gamble Ltd.
[ ] Cadbury Ltd. [ ] Nestle Foods Ltd.
[ ] ITC Ltd.
Q-2 Currently, which companies display scheme, is available at your store?
[ ] Hindustan Unilever Ltd. [ ] Proctor & Gamble Ltd.
[ ] Cadbury Ltd. [ ] Nestle Foods Ltd.
[ ] ITC Ltd.
79. Q-3 Choose the type of display system implemented by the companies that you have selected in answer of earlier question
Display Systems / Company
Hindustan Unilever Ltd
Proctor & Gamble Ltd
Cadbury Ltd
Nestle Foods Ltd
ITC Ltd
Window Display
Hardware Display in the form of hooks & peg hooks
Counter Display
None of These
If your answer is none of this, please specify:
Hindustan Unilever Ltd: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
Proctor & Gamble Ltd: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
Cadbury Ltd: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
Nestle Foods Ltd: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
ITC Ltd: ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________
80. SECTION- 1 About The Display System of Hindustan Unilever Ltd. (Annexure: Photograph of the display form three angle) Q-1 Kindly explain the benefits to the retailer in this Display System? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-2 Kindly explain the rules & regulations of this Display System? (You can give the copy of printed document if available) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-3 Kindly explain the planogram of this Display System? (You can give the copy of printed document if available) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-4 Kindly explain the problems of this Display System if you perceive so? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ____________________________________________________________________
81. SECTION- 2 About The Display System of Proctor & Gamble Ltd. (Annexure: Photograph of the display form three angle) Q-1 Kindly explain the benefits to the retailer in this Display System? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-2 Kindly explain the rules & regulations of this Display System? (You can give the copy of printed document if available) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-3 Kindly explain the planogram of this Display System? (You can give the copy of printed document if available) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-4 Kindly explain the problems of this Display System if you perceive so? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ _______________________________________________________________________
82. SECTION- 3 About The Display System of Cadbury Ltd. (Annexure: Photograph of the display form three angle) Q-1 Kindly explain the benefits to the retailer in this Display System? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ __________________ Q-2 Kindly explain the rules & regulations of this Display System? (You can give the copy of printed document if available) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-3 Kindly explain the planogram of this Display System? (You can give the copy of printed document if available) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-4 Kindly explain the problems of this Display System if you perceive so? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ _____________________________________________________________________
83. SECTION- 4 About The Display System of Nestle Foods Ltd. (Annexure: Photograph of the display form three angle) Q-1 Kindly explain the benefits to the retailer in this Display System? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-2 Kindly explain the rules & regulations of this Display System? (You can give the copy of printed document if available) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-3 Kindly explain the planogram of this Display System? (You can give the copy of printed document if available) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ __________________ Q-4 Kindly explain the problems of this Display System if you perceive so? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ________________________________________________________________________
84. SECTION- 5 About The Display System of ITC Ltd: (Annexure: Photograph of the display form three angle) Q-1 Kindly explain the benefits to the retailer in this Display System? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ __________________ Q-2 Kindly explain the rules & regulations of this Display System? (You can give the copy of printed document if available) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-3 Kindly explain the planogram of this Display System? (You can give the copy of printed document if available) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ Q-4 Kindly explain the problems of this Display System if you perceive so? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ ______________________________________________________________________