The document is a report submitted by Rohan Adya for his Post Graduate Diploma in Management on a study of the market potential of Cremcia biscuits in rural areas of Ludhiana district in Punjab. It includes an introduction, literature review, company and industry overview, research objectives and methodology, data analysis and findings, and recommendations. The study assessed factors affecting consumer buying behavior in rural markets and the satisfaction with and market share of Cremcia biscuits compared to competitors.

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A Summer Internship Project Report on
“A STUDY OF MARKET POTENTIAL OF CREMICA’S BISCUIT IN RURAL AREAS OF
LUDHIANA DISTRICT”
Submitted in partial fulfillment of the requirements for the degree of
POST GRADUATE DIPLOMA IN MANAGEMENT (MARKETING)
By
ROHAN ADYA
Roll No. E2M 56
Under the guidance of
Dr. Abhilas Pradhan
A study conducted for Mrs. BECTOR’S FOOD SPECIALITIES LTD.
at
Indira School of Business Studies,
Tathawade, Pune 411033
2016-18

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STUDENT’S DECLARATION
I, ROHAN ADYA, a student of Indira School of Business Studies, Pune, hereby declare to the fullest of my
knowledge and belief that the Project presented is solely done by me for Mrs. Bector’s Food Specialities Ltd. as
a partial fulfillment of Post Graduate Diploma in Management - (PGDM).
The facts presented in the report are as the results of the observations of mine.
Place:Ludhiana ROHAN ADYA
Date:
PGDM-MKT 2016-2018

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ACKNOWLEDGEMENT
I acclaim with great zeal my heartfelt thanks to all those who persuaded me to depict and accomplish my project
smoothly and rationally.
I also express my sincere thanks and gratitude to Mr. Dinesh Thakur (Zonal Sales Manager), Mr. Joginder
Singh (Sr. Manager Human-Resources), for the constant help and encouragement during the course of the project.
I express my profound sense of gratitude to my guide, all those who were engaged with the research work
indirectly or directly and for the assistance given to us throughout the course of the training period.
This internship would not be complete without the support of our director Ms. RenuBhargava. I would also like
to thank my Mentor Mr. Abhilash Pradhan for their guidance and unflinching support throughout the phases of
my Internship.
Last but not the least, my endless appreciation goes to my family who has stood by my side and given me moral
support whenever I was low and boosted my will power.
ROHAN ADYA
E2M-56

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EXECUTIVE SUMMARY
Cremica, a name that has always spelt quality, practical and great tasting food, is fast becoming a household name
in India. Its vast array of products has been carefully selected to provide the best food processing industry has to
offer. Today, Cremica is known for its unique recipes, health oriented ingredients and state-of-the art standards.
Cremica manufactures high quality condiments, Indian Gravies/Curries, Tomato Ketchup, Sauces, Sandwich
Spreads, Mayonnaise, Sandwich Mayonnaise, Syrups, Toppings, Salad Dressings, Indian Snack dips, Fruit
fillings for cakes, pastries, and Desserts for retail and food service customers.
This report provides information on the consumers buying pattern behaviour in rural market and how many users
are there for my product.”
 The objective of project was to evaluate major factors that could affect consumer buying behaviour.
 Primary Research through Questionnaire with the customer.
 Survey conducted with existing retailers.
 To Understand the probably Reason for switching (if any) with the customers.
 To study the consumer behaviour and level of satisfaction.
 To know which factors are responsible in which our brand is lacking behind as compared to other
existing brands.
This project was divided into three major parts:-
1. To do a Primary research on the content that can fetch us responses with respect to the positioning
factors, Buying behaviour, Demand etc.
2. Then in the next part we went on to the field to retail shops to get to know what they think about my
brand and know what they will prefer.
3. In last stage we collected responses through questionnaire and then analysed, tabulated, and interpreted
to get the required output out of it.
The project was started on 23rd of May after knowing all the relevant information regarding the project, under
the guidance of Mr. Dinesh Thakur. My project involves the study of Understanding the rural market the
Consumers behaviour and the level of satisfaction and for this I used Internet as a primary source of information
for study, and did a strong research over it.
Since, the next part of my project was to develop the questionnaire with respect to Consumer Behaviour. Hence,
the detailed study provided me a rough idea in developing questionnaire and my corporate mentor guided me in
finalizing the questionnaire.

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 For this, the questionnaire was prepared which gave the vague idea about the retailers, who were really
interested in expressing their satisfaction/dissatisfaction.
 The sample size for new customer was limited to 200 shops and the respondents were 170. The Sample
was prepared from the list of the existing user provided to us by our company mentors and the prospects
which were visited by us in person.
 The type of research and research design was Objective design and Descriptive Research.
The finding which comes from the research and the Questionnaire was that the few retailers were unsatisfied with
the Company’s delivery time, i.e the distribution system is weak and they accept those brands which gave them
the best deal.

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Table of Contents
S N Contents Pg. No
1 Introduction 7-11
2 Literature overview 11
3 Industry outlook/ Company overview 13-21
4 Researchobjective 21
5 Researchmethodology 23-24
6 SWOT Analysis 27
7 Maeketing mix 28
8 Data Analysis, Results and Interpretation 30-47
9 Key Findings 48
10 Conclusions 49
11 Limitations of the study 50
12 Recommendations 51
13 Bibliography 54
14 Questionnaire 56-57

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Chapter-1 Introduction

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Introduction:-
1.1 What is the project & definition of the project?
Rural marketing has become the latest mantra of most corporate.
Penetration defines how many users are there for a product. It is one of the measures of a company or industry's
success in getting consumers to use their products.
Penetration of a product depends on several factors, like income, marketing activity, needs, positioning, logistics
of making the product available in the first place, demographics as well as an understanding of consumer needs.
FMCG marketers found that selling low unit cost, small pack of biscuits to rural markets encouraged price-
sensitive rural people to try and taste. The small Rs.5 packet has since then been one of the greatest causes of
increasing demand and all other types of products into rural markets. Right place also matters where you want to
make your product available whether the area is populated or not and also the income of the people plays an
important role as you cannot have more of Rs. 30 pack rather than Rs. 5 pack as in rural market mostly people
will demand the smaller packs as compared to the big packs. And we have seen that small packs generate most
of the business as compared to the big packs. In order to make your brand aware to the public over there, you
need to do the promotion activities like put the hoardings in that area, distribute the pamphlets etc. There is a huge
growth potential for all the FMCG companies as the per capita consumption of almost all products in the country
is amongst the lowest in the world. In recent years, rural markets have acquired significance in countries like
China and India, as the overall growth of the economy has resulted in substantial increase in the purchasing power
of the rural communities. On account of the green revolution in India, the rural areas are consuming a large
quantity of industrial and urban manufactured products.
The decades of opening of Indian economy to the outside world and the accompanying intervention in rural
economy by the government in the form of various development schemes and programmes i.e., SGSY, NREGA
Sampoorna Swachchta Abhiyan, Gram Vikas Yojna etc and also decentralization of power through panchayatiraj
institutions have opened new vistas of opportunities to the rural people. These together have made the rural market
attractive for FMCG industry in India. This relationship has grown over the years in a reinvigorating manner
leading to the revitalization of the same.

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1.2Importanceofrural penetration
Rural Segment Quickly Catching Up
The Fast Moving Consumer Goods (FMCG) sector in rural and semi- urban India is estimated to cross US$ 100
billion by 2025
The rural FMCG market is anticipated to expand at a CAGR of 17.41 per cent to US$ 100 billion during 2009–
25
Rural FMCG market accounts for 40 per cent of the overall FMCG market in India, in revenue terms
Amongst the leading retailers, Dabur generates over 40-45 per cent of its domestic revenue from rural sales. HUL
rural revenue accounts for 45 per cent of its overall sales while other companies earn 30- 35 per cent of their
revenues from rural areas.
Rural Consumer: The differences between rural and urban consumers always exist in India. The Indian rural
customer is marked by illiteracy and poverty. Illiteracy leads to an inability to identify brand differences and read
the basic text on packages. Poverty and dependence on vagaries of monsoon result in a low and unpredictable
purchasing power. Moreover, products are sold loose, giving high competition to branded sealed products.
Ignorance and illiteracy are accompanied by strong influence leaders like the local panchayat members, caste and
religious leaders etc. The rural consumers are economically, socially and psychologically different from their
urban counterparts and are definitely price-sensitive.
Irregular income, dependency on the vagaries of monsoon induces the rural consumer to buy in small quantities.
To address this issue, most FMCG companies have introduced products (such as tea, shampoos, biscuits etc.) in
smaller packs and sachets to make the product more affordable for rural consumers and obtain a share of wallet.
Small Coke worth Rs 5, Chick shampoo and Meera shampoo sachets has been credited with pioneering the sale
of shampoos in sachets at Rs. 1 and Rs. 2, a trend that boosted rural sales.
Since rural population does not have the concept of storing goods and blocking too much capital, it is important
for rural marketers to provide products in small quantities as well as good credit systems for larger products. It is
also important to induce first time purchase and trials so that customer is able to experience products he never
has. Credit facility also needs to be extended to the wholesalers.

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1.3 Salient contributions of the project:
 Collected data about company’s biscuit in the rural areas and got to know about the market share of my
brand as compared to other existing brands in the rural market.
 Suggested my company what measures they should take in order to increase their demand and in what
areas they are lacking.
 Also the untapped market which they needs to cover in which we can see the scope of our business and
can grow further.
Through research I came to find out the flaws in our distribution system that are not up to the mark the
distributors are not delivering on time due to which some retailers have stopped ordering our biscuits

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1.4Scopeof the project:-
 To study the role of distributors, wholesalers and the retailers in the profitability of the company.
 To assess the relevance of heavy investment/expenditure on packaging.
 To study the buying behavior of the people in rural area.
 To know which product is giving the highest sale whether the small packets or big packets.
 To know the areas to target which can give us the highest sale.

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Literature review:-
Dr. Surinder Singh Kundu."Customers’ Perception towards the Fast Moving Consumer Goods in Rural Market:
An Analysis", International Journal of Techno-Management Research, Vol. 01, Issue 02, September 2013 - Dr
Kundu observed that a consumer sets a frame of references in his/her mind to choose or purchase a product or
service of same or different brands or producers. Keeping in view the frame of references the present paper is an
attempt to study the factors affecting the purchase decision of consumers towards purchase of the Fast Moving
Consumer Goods (FMCGs) and to recommend the policies which may be adopted by the advertisers to enhance
awareness among the rural buyers. The study used primary data collected from a sample of 1000 rural
consumers from the 40 villages of 04 districts of Haryana state with the help of a well-structured questionnaire
by following "Foot-in-Door Strategy" (FIDS) and found that rural buyers perceived that TV commercials
followed by print advertisements and word of mouth plays a significant role for taking the decision to purchase
these FMCGs. Further, they consider their own experience, display at shops; incentive schemes for the purchase
of these FMCGs, whereas they do not fully agree that advice of beautician influences their decision towards the
purchase of these FMCGs. On the other hand, rural buyers perceived that social factors are not so strong that
those may influence their decision to purchase these FMCGs. Hence, it may be recommended that the producers
or marketers should frame ethical advertising strategies keeping in mind that rural people are fond of electronic
and print media advertisements.
Panichukunnath Ajith “3P Framework : Rural marketing in India”, SCMs Journal of Indian Management ,
January-March 2010 – Ajith Panichukunnath (2010) has emphasized on the 3ps of marketing viz push
marketing, pull marketing and pull up marketing. Taking into account the retailers of rural India push and pull
strategy may be very effective and create very good impact in the market. As the rural traders are not receiving
equal importance as the urban one. The rural market is heterogenous and only a retailer is brand ambassador of
the marketer towards the rural consumers. If such brand ambassador is trained and forced to convert goods onto
cash then a firm can enjoys leadership in rural and urban India both
Article:-
Suvadip Chakraborty(Sep2010) said that India’s rural market is a gold mine, but largely remain untapped by the
Indian corporate sector. During recent time some companies and organizations have implemented some
innovative projects to tap the rural market and deliver value added services to the doorstep of the rural people.

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Chapter-2.

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2.Industry Outlook
Biscuits market in india : Rs.12,000-crore FMCG generates total of 5% of the factory employement in the country
and is creating employement for 3 million people in the small cities and rural areas. There are around 150 medium
to small scale biscuit factories in india. Indian biscuit industry is the 2nd largest biscuit industry, just behind
U.S.A. Biscuit industry contribute Rs. 8,000 crore to the FMCG industry today provides vast opportunity. Fast
moving consumer goods (FMCG) is the 4th largest sector in the Indian economy. There are three main segments
in the sector – food and beverages which accounts for 19 per cent of the sector, healthcare which accounts for 31
per cent and household and personal care which accounts for the remaining 50 per cent.
The FMCG sector has grown from US$ 9 billion in FY00 to US$ 49 billion in FY 2016-17. The sector is further
expected to grow at a Compound Annual Growth Rate (CAGR) of 20.6 per cent to reach US$ 103.7 billion by
2020.
Accounting for a revenue share of around 60 per cent, urban segment is the largest contributor to the overall
revenue generated by the FMCG sector in India and recorded a market size of around US$ 29.4 billion in 2016-
17. Semi-urban and rural segments are growing at a rapid pace and accounted for a revenue share of 40 per cent
in the overall revenues recorded by FMCG sector in India. The rural FMCG market in India is expected to grow
at a CAGR of 14.6 per cent from US$ 29 billion in 2016 to US$ 100 billion by 2020.
Growing awareness, easier access, and changing lifestyles are the key growth drivers for the consumer market.
The Government of India's policies and regulatory frameworks such as relaxation of license rules and approval
of 51 per cent Foreign Direct Investment (FDI) in multi-brand and 100 per cent in single-brand retail are some of
the major growth drivers for the FMCG market.
There is a single step buying process in shorter sales cycle also maximizes the value of transactions. Consumer
spends little time on purchasing decision, he seldom ever looks at the technical specifications. Brand loyalties or
recommendations of reliable dealer/retailer drives purchase decisions. Brand switching is often induced by
heavy advertisement, recommendation of retailers or word of mouth. Indian rural market with its colossal size
and demand base offers great opportunities to marketers. Two thirds of India‟s consumers live in rural areas
where almost one third of the national income is generated. It is seen as a profusion of opportunities, whether
for marketing durables, textiles and garments, personal care products Fast Moving Consumer Goods Industry. A
rural marketer is faced with an entirely different set of conditions and problems while marketing in the rural
area as compared with an urban area. For most marketers planning to enter the rural markets, distribution poses
a serious challenge. For the successful exploration of rural markets, a basic requirement is infrastructure

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2.1 Company overview
Way back in 1978, over three decades ago, Mrs. Rajni Bector started an enterprise unveiling her love for baking.
Swirling remarkable ice-creams, breads and biscuits, Cremica began its journey on the foundation of quality,
freshness and taste. The small enterprise in due course of time has become a huge food product conglomerate,
where the parameters of goodness have remained the same. Mrs. Bector's love for baking, today, is relished by
everyone.
Cremica, as one of the leading brands in Premium Food Products is loved across the world. Leading the food
processing business and setting the standards through consistent quality, globally certified production facilities
and unmatched expertise, the company makes and serves biscuits to suit every taste palate with love.
Cremica is known for its innovative offerings, packaging and its commitment to quality. Keeping up with
changing consumer preferences the company has also introduced a health range for the health-conscious
consumers.
From a small enterprise that began in a backyard, Mrs. Bector's Food Specialties Ltd. has come a long way. When
the company began, Mrs. Rajni Bector was the only woman out there. And her values continue to drive us even
today. It is heartening to see that her belief in offering the best has touched many hearts around. We continue to
follow the standards set by her, believing that nothing is impossible. People all around have been touched by
Cremica's commitment. As we continue to grow, it's our endeavour to bring the taste of joy to every home in
every possible way."
Mr. Anoop Bector, Managing Director
Operating from fully equipped factories with a total capacity of Approx 150,000 MT / Per Annum, Cremica
specialises in producing an array of biscuits.
Cremica's plants are equipped with modern and highly efficient technology that account for being one of the best
in the country. The modern machinery imported from across the world ensures that Cremica maintains the quality
of its products to match global standards.
Cremica in its quest to excellence in food manufacturing has also initiated several Quality Improvement Programs
(QIP) With constant assessment of products, the company continues to set and maintain high benchmarks.
Cremica excels in manufacturing with processes and tools likes Kaizen, 5 S, Six Sigma, Andon System, Poke
Yoke, and Value Stream Mapping to keep moving up the ladder and sustain the implemented systems.
Cremica takes environment, health and safety as primary values and practices Zero Accident Culture at the
workplace by following several accident prevention techniques. Cremica, a name that has always spelt quality,
practical and great tasting food, is fast becoming a household name in India. Its vast array of products has been
carefully selected to provide the best food processing industry has to offer. Today, Cremica is known for its
unique recipes, health oriented ingredients and state-of-the art standards. Cremica manufactures high quality
condiments, Indian Gravies/Curries, Tomato Ketchup, Sauces, Sandwich Spreads, Mayonnaise, Sandwich
Mayonnaise, Syrups, Toppings, Salad Dressings, Indian Snack dips, Fruit fillings for cakes, pastries, and Desserts
for retail and food service customers.

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Cremica introduced Opera Crisps which are cottage style potato crisps made with Olive Oil and available in 4
Mediterranean flavuors. It will not be out of place to mention here that Cremica is an approved supplier to most
of the World’s leading food brands too!
Positive working culture at Cremica showcases the dedication of the employees working together to deliver high
quality product and services to our customers.
Cremica is a truly an experience that takes the taste buds on a journey of phenomenal taste. Each product of
Cremica is baked with real ingredients of excellent quality and of course endless love.
Cremica offers premium, quality products in over 60 countries across the globe. Cremica has established itself as
a respected brand in the market and is one of the most valued suppliers to national and international brands. We
share a relationship of trust with our distributors and retailers worldwide and provide an array of popular products,
including Butter Cookies, Diet Marie, Digestives, Party Crackers and many more.
Cremica now produces more than 1 lac tones of products each year
Environment
We, at Cremica are committed to conserve…

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Cremica is committed to do sustainable business and focus on things that matter the most to its employees,
communities, society and the environment.
Our vision is to create a sustainable business to deliver maximum value and we are constantly evolving our
processes and policies to create quality products, optimize cost and deliver a unique experience to those who help
us do business.
At Cremica, our core sustainability touch points are safety, employee engagement & women empowerment.

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2.2 Company’s product

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The company was incorporated as 50:50 joint ventures with the Quaker Oats Company of U.S.A a Fortune 200
company. This project has been set up to produce liquid products such as, Tomato Ketchup, Mayonnaise, Tartar
& Sandwich Spreads, Milk shake Syrups and Ice cream Toppings mainly for Mc Donald’s requirement in India
and for the neighboring countries. The plant has been operational from Oct. 1996. Quaker Oats Company
withdrew from the joint venture in 1999-2000and the name of the company changed from Quaker Cremica Foods
(P) Ltd. to Mrs. Bector Food Specialities (P) Ltd. then company started institutional & retail market in addition
to Mc Donald. In the year 2001, the company was converted into public limited company. Today the group
operates India’s largest tomato ketchup line and is country’s largest producer of ketchup portion packs capable of
packing 2.5 million sachets per year! These high quality products have made a mark and are even exported to
Europe Africa, Middle East, US and Australia.
The top of the line quality offered by CREMICA represents a key component of the value proposition. Setting
aside Indian standards, the group has established a quality assurance department that is responsible for the
implementation of GMP guidelines, online inspection of products, analysis of all raw materials and testing of
finished products. To facilitate this, the group has set up a fully equipped laboratory geared to handle even
microbiological analysis. And to maintain the highest standards in food safety, the group has adopted the HACCP
Standards, which is certified by the NSF of USA.
Cremica Food Industries to launch new products and food concepts at Aahar 2017

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The 32nd edition of Aahar International Food & Hospitality Fair is set to showcase an array of novel concepts
and range of new products by Cremica Food Industries for retail and food service from March 7 - 11 at Pragati
Maidan, New Delhi. In the next 3 years, we are aiming for Rs 1000 crore turn-over by 2020. We are looking at
entering new product categories and also increase our distribution reach. Cremica Food Industries is looking at
ramping up its distribution network to 1,00,000 outlets in the three years from 15,000 at present. To expand
manufacturing capacity, the company plans to invest Rs. 200 crore in the next three years to set up a food park
manufacturing plant in Himachal Pradesh.

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Chapter-3 research objective

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3. Research Objective
 The objective of this research is to find the rural penetration of Cremica in biscuits market in the
outskirt villages of Ludhiana (Punjab) and also to conclude some suitable recommendations for the
company to increase the same.
 For that I visited many villages and asked the local public as well as retailers various questions
regarding biscuits so as to generate the response and can come to the conclusion that which brands
are giving tough competition to my brand and what is the reason that why they are not choosing our
brand what are the possible reasons associated with it.
 Higher purchasing capacity i.e how much people are ready to pay for a pack of biscuit whether they
prefer most in the category of Rs. 5-10 or Rs. 20-25.

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Chapter-4. Research methodology

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RESEARCH:
Research refers to search of knowledge. The pattern in which a research is carried out to arrive at a conclusion
or to final new relationship within a particular framework is called research methodology. Research
methodology also refers to the various sequences, steps to be adopted by a researcher to study a problem with
certain objectives in view.
RESEARCH DESIGN:
Research design is the framework or plan for a study that guides the collection and analysis of the data. It is a
map or blue print according to which research is to be conducted. The research design is given below.
 NATURE OF RESEARCH:
The research design followed for this study is descriptive research for analyzing the
collected data, an in-depth research analysis was framed and various statistical tools
and techniques were also used for the purpose.
 DESCRIPTIVE RESEARCH :
Descriptive research includes surveys and fact-findings enquiries of different kinds. The Major purpose
of descriptive research is description of the state of affairs as it exists at present. The method of research
utilized in descriptive research was survey method.
SURVEY PROCESS:
For the research, various shops were visited and the retailers were asked questions which were short and specific
and easily understandable. Data were also collected from official sites and research work.
Steps Undertaken:
1. A visit was made to the retail shops and some data was collected from local public of that area.
2. A questionnaire was also framed which consisted basic questions regarding the demand, referrals, and
feedback.
DATA TYPE:
The two main types of data for present study have been primary data and secondary data.
1. PRIMARY DATA:
Primary data means original data that has been collected specially for the purpose in mind. It means someone
collected the data from the original source first hand.
2. SECONDARY DATA:
Secondary data is data that has been collected for another purpose. When we use Statistical Method with Primary
Data from another purpose for our purpose we refer to it as Secondary Data. It means that one purpose's Primary
Data is another purpose's Secondary Data. Secondary data is data that is being reused.

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SAMPLING
SAMPLING SIZE/POPULATION:
The population or universe represents the entire group of units which is the focus of the study. Thus,
the population could consist of all the persons in the country, or those in a particular geographical location, or a
special ethnic or economic group, depending on the purpose and coverage of the study.
The population considered in the research was the outskirts of Ludhiana area consisting of 200 retail shops.
SAMPLE:
Non-Probability Sampling, or convenience sampling, refers to when researchers take whatever individuals
happen to be easiest to access as participants in a study.
Sample denotes only a part of the universe which is studied and conclusions are drawn on this basis for the entire
universe.
SAMPLE METHOD:
Non-probabilistic convenience sampling-
Convenience sampling is a non-probability sampling technique where subjects are selected because of their
convenient accessibility and proximity to the researcher.
Research instrument used-
A questionnaire was prepared and used as the instrument for the research.

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Characteristics of FMCG industry is characterized by a few distinct factors:
 The sector touches every aspect of human life, looks to hygiene to palate.
 This industry is characterized by a strong focus on the four Ps : Product, Pricing, Place and Promotion.
 It is a high volume, low value driven industry in most categories.
 It is brand driven, rather than product driven.
 The capital investment required in plant and machinery is not high and any reasonably sized industrial house
can enter the industry in manufacturing.
 The major area in the area of marketing: brand building and promotion.
 Distribution network is extremely vital for the success of an organization in the industry.

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Challenges Faced by FMCG Sectors for Rural Marketing-
The peculiarities of the rural markets and rural consumers pose challenges to the marketers in reaching them
effectively. While making out a case for opportunities that are rapidly developing in rural markets, one should
not underestimate the several daunting problems in planning for growth. There are a large number of small
villages which are not easily accessible because of weather beaten roads. Rural consumers are far less
homogeneous than urban consumers. The main problems of rural marketing are discussed below:
Transportation problems: Marketing activities require transportation facilities. Due to poor transportation
facilities, farmers and marketers find it difficult to reach markets. Transportation infrastructure is quite poor in
rural India. Nearly 80 percentages of villages in the country are not connected by well constructed roads.
Warehousing: In the rural areas, there are no facilities for public as well as private warehousing. Marketers face
the problem of storage of their goods. Packaging: It is the first important step of product processing. If the
packaging cost is high, the total cost of products goes up. It is suggested that the marketers should use cheaper
materials in packaging for the rural markets.
Media Problems: Media have lots of problems in rural areas. Television is a good medium to communicate
message to the rural people. But due to non-availability of power, as well as television sets, majority of the rural
population cannot get the benefits of various media.
Seasonal Marketing: The main problem of rural marketing is seasonal demand in rural areas, because 75% of
rural income is also seasonal. For example, the demand for consumer goods will be high during the peak crop
harvesting period, because this is the time when the rural people have substantial high cash flow. Rural marketing
depends upon the demand of rural people and demand depends upon income and consumer behaviour.
Low Per Capita Income: Per capita income is lower in rural areas compared to those in urban areas. Again, the
distribution of rural income is highly skewed, since the land holding pattern, which is the basic asset, is skewed.
Thus the rural population presents a highly heterogeneous spread in the villages.
Low Level of Literacy Rate: Literacy rate is low in rural areas compared to urban areas. This again leads to the
problem of communication for promotion purpose. Print medium becomes ineffective and to an extent irrelevant
in rural areas since its reach is poor.
Distribution: An effective distribution system requires village-level shopkeeper, Mandal/ Taluka- level
wholesaler or preferred dealer, distributor or stockiest at district level and company-owned depot or consignment
distribution at state level. The presence of too many tiers in the distribution system increases the cost of
distribution

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SWOT ANALYSIS
Strengths:-
 Varied type of products
 Presence of established distribution networks in both urban & rural areas.
 Innovative product category (twin flavor)
 Renowned Clientele
Weakness:-
 Availability
 Branding
 Lack of awareness
 Dependence on retailers and grocery stores for displaying diversified products on shelf, induce impulsive
buy.
Opportunities:-
 Untapped market
 Large domestic market
 Export potential
 Scope for upcoming
Threats:-
 Competition from the National brands/Local brands.
 Slowdown in rural demand
 Local bakery products

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Marketing mix:-
Product:
Available in 4 categories over more than 18 products.
 Glucose
 Cookies
 Cream biscuits
 Crackers
Pricing:
Different Products are available at different price from Rs.10-25
 Providing health conscious product
 Positioning as a premium brand
 Targeting new generation as well as indian family’s
 Promoting as a tea time snacks
Place:-
Cremica has 2 manufacturing unit one in Phillaur (Punjab) and other in Una(Himachal Pradesh)
 Distribution network
 Direct marketing
Promotion:-
 Motivation to the dealers
 Television media (ad agency: JWT)
 Print media

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Chapter5-Data analysis

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5.1 Number of retail shops in different areas-
Interpretation:-
The graph shows the different areas covered for the study in the outskirts of ludhiana region. It consists of all
the shops which are dealing with us and future potential customer.
0 5 10 15 20 25
sidhwan
hambran
chowki mann
swaddi kalan
bhundri
gujarwal
number of shops
Areas

32. 32
20%
12%
16%
10%
12%
7%
9%
14%
Sales
britannia cremica parle priyagold sunfeast funjoy anmol others
5.2 Rural market & share of different companies biscuits:-

33. 33
Interpretation:-
Their main focus should be on the distribution and advertisement as because of not delivering the products at
time some retailers have stopped ordering our product and advertisement needs to be done at a large scale to
increase more brand awareness. Also the attracted schemes to the retailers will help us to grab the market.
5.3RETAILERS’SUGGESTIONSFOR INCREASINGSALES
OF CREMICAAT THEIR STORES.
33%
23%
16%
28%
Distributi
on
Schemes
Advertis
ement

34. 34
5.4 Questions asked during the project from the retailers:-
 Which type of biscuits you normally prefer?
 How often do you eat biscuits?
 Which brand do you prefer in buying biscuits?
 Before buying biscuits which factor do you consider?
 Are you satisfied with the supply chain of our brand?
 Which brand has the maximum sale in your store?
 Would you eat biscuit as a mid-morning snack?
 Why not cremica?
 Which range you like?
Practical Implementation
By this we are helping Mrs. Bector food specialities Ltd. to find those areas which are out of our reach & still
needs to be covered.

35. 35
5.4.1 howoften do you eat biscuits?
Interpretation
The above data shows how many people consume biscuits regularly & for what purpose.
People in the age between 25 to 50 consumes biscuits daily while the others below the age of 25 consumes
ocassionally or as a snack.
Everyday Ocassionally Snacks
Column1 60 25 15
0
10
20
30
40
50
60
70
Numberofresponses
We asked people whether they consume biscuits on a regular biscuit
or as a tea time snack only

36. 36
5.4.2 Which type of biscuit you normally prefer?
Interpretation
In the above data we asked random number of people about their preference of biscuits whether they
consume more of bakery rather than branded or not. Branded biscuits were leading by far as compared to
bakery ones their share in the rural areas were high.
Branded Bakery
Column1 78 22
0
10
20
30
40
50
60
70
80
90
Numberofpeople
Preference of people
Following are the category of biscuits which people usually
eat

37. 37
5.4.3Ques.3) Out of the following which type of biscuit you prefer
Interpretation
In the above data we asked which type of biscuit they mostly prefer(Cream, Salty, Cookies, Digestive etc.)
Cookies are leading in the list as people eat them with tea & also serves to their guests.
0
5
10
15
20
25
30
35
40
Cream Salty Cookies Digestive
Numberofpeople
type of biscuit
Out of the following of these are the most preferred
biscuits

38. 38
5.4.4 Which factors do you consider before buying biscuit?
Interpretation
In the above data we asked number of people about the different factors which they consider before buying the
biscuit, what is the thing on which they mostly focus on.
According to graph we can see that majority number of people said that it should be tasty also the people who
responded tasty are falling in the age group of 25-40.
0
10
20
30
40
50
60
70
Brand Availability Taste Price
Numberofpeople
Factors to be consider before buying
Below are the factors which the buyers considers
beforebuying biscuits

39. 39
5.4.5 Which brand do you prefer normally?
Interpretation
In the above data we asked the number of people about the brand which they usually prefer or which is their
favorite brand. When it comes to the brand preference Britannia is leading amongst all in the market.
0
5
10
15
20
25
30
35
40
45
50
Britannia Parle Sunfeast Cremica Others
Numberofpeople
types of biscuitbrands
The following are the list of brands which peopleusually
buy

40. 40
5.4.6 Why not cremica?
Interpretation:-
In the above data we asked number of people that if they are not preferring our brand then what is the possible
reason of not choosing cremica then we got to know that availability is the main reason of customer loss.
0
5
10
15
20
25
30
35
Brand Availability Taste Price
Numberrofpeople
The following are the reasons thatwhy people don't prefer
cremica

41. 41
5.4.7 Which brand has the maximum sale in your store?
Interpretation:-
In the above graph it is shown that which biscuit company has the maximum sale in the retail shops and
Britannia is leading in most of the shops as its customer base is very strong and delivery of products are well on
time also they give the good price to the retailers.
0
5
10
15
20
25
30
35
40
45
britannia cremica parle anmol sunfeast
percentageacquiredbycompanies
Biscuit brands
The following are the brands which have the maximum sales in
the retail shops

42. 42
5.4.8 Are you satisfied with the supply chain of our brand?
Interpretation:-
The above graph show that most of the retailers were satisfied but the dissatisfied one’s are also high in number
as they were complaining about the distributors who don’t provide products on time. In this case other brands
have the chance to overtake our brand very easily.
0
5
10
15
20
25
30
35
very satisfied satisfied neutral dissatisfied
numberofshops
Response
Responsegenerated fromthe above question are as
follow

43. 43
5.4.9 Which range you like?
Interpretation:-
The above graph shows how much people in rural are most likely to spend on a pack of biscuit. The Rs.5
Pack has the maximum sale as compared to other packs. So we can keep more of the stock of small packs
in the shops as they are generating more revenue while Rs.25-30 cookie pack has low demand in rural areas.
0
5
10
15
20
25
30
35
40
45
Rs.5 Rs.10 Rs.15-20 Rs.25-30
Numberofpeople
Priceof BiscuitPack
Following are the prices which the people are ready to pay
for a biscuit

44. 44
5.5 Driving factors for retailers suggestions
Interpretation:-
The above pie chart gives the clear idea to the retailers that mostly people go for taste and quality when they
have to select the biscuit brand.
availability
22%
quality
25%
taste
28%
advertisement
7%
schemes
18%
Sales
availability
quality
taste
advertisement
schemes

45. 45
5.5.1 Market share in the outskirts of Ludhiana
Interpretation:-
The above graph shows that Britannia is giving tough competition to my brand & leading in various regions &
also the local brands are growing at a faster pace. Britannia is leading in the areas like bhundri, sidhwan and
gujarwal with the share over 20-25%, while cremica has the maximum share in bhundri and sidhhwan. It has
threat from its competitor like Britannia & Parle.
0
20
40
60
80
100
120
140
britania cremica parle ITC anmol Priyagold Raja
MARKETSHAREINPERCENTAGE
bhundri sidhwan gujarwal swaddi kalan chowki mann

46. 46
5.5.2 Currentscenario:
 Cremica’s turnover is 800 crores whereas 65% of the revenue is contributed by biscuits.
 Leadership Position : No.3 in Punjab
No. 2 in Himachal
No.3 in J&K
Marketing team 250
Distributors 520
Super stockiest 18
Depots 15

47. 47
Which biscuit brand do they prefer?
Brands Sidhwan Chowki
mann
Swaddi
kalan
gujarwal Bhundri
Cremica 95 60 65 50 75
ITC 67 40 55 30 35
Raja 85 65 75 70 80
Anmol 80 55 75 67 85
Parle 70 45 40 72 70
Britannia 95 90 85 70 80
Priyagold 75 65 65 45 80
*The above data was shown in the percentage*
(in every village at least 15-20 shops were visited to collect the information about the preference of biscuits)
Analysis:-
Also we can say that local brands like raja and anmol are growing at a good pace. Recently anmol has come up
with their first television advertisement showing Akshay Kumar as their brand ambassador which will help the
company to boost the sale in different regions.

48. 48
Analysis of data:-
1. The field survey and personal interview technique was adopted in illuminating responses.
2. The data collected has been tabulated and presented in the form of tables, charts and graphs.
3. Percentage method is used to analyze the collected data.
4. Some data was collected from company’s official website.

49. 49
Key Findings:-
1. Cremica lacks in the distribution system as compared to brands like Britannia, Anmol & Parle.
2. Retailers usually prefer those brands who gave them attracted offers & schemes.
3. In-store advertising or shelf display affects the purchase decision of a consumer and even it affects the
buying behaviour of rural consumers.
4. Rural consumers who can afford to buy in bulk quantity, they travel to nearby city or town and they get
discounts and even free home delivery facilities.
5. Rural consumers prefer to buy low or medium priced products and they expect value for money for each
product that they buy.

50. 50
Conclusions:-
1. Penetration of Cremica in biscuits market in rural areas of Punjab came out to be a descent one with a
market share of 11%.
2. Apart from competitors like ITC, Britannia and Parle, local brands are giving high competition because
of high margins to the shopkeepers and low price of the products.
3. Brand Awareness and Brand Loyalty are major problems on the way of increasing market share of the
company.
4. Irregular supply is also one of the major problems which disinterest both retailers and customers.
5. Less/no interaction of retailers with company employees or Cremica distributors.

51. 51
Limitations of the study:-
 The limitations of the various tools and techniques proposed are applicable to this study also.
 The study proposes have to greatly rely on the data provided by the companies, distributors, wholesalers
and Retailers.
 The proposed study is limited to cover major Indian FMCG companies only.
 Limited information is accessible on company’s websites.
 Besides the retail traders, with the age old and traditional outlook so not maintain record. Moreover,
there is no statutory provision to maintain records compulsorily.

52. 52
Recommendations
Sales Team
1. Regular and continuous supply of products to retailers in order to gain their trust and confidence.
2. Free sampling of products should be executed frequently.
3. Defected products should be taken back.
4. Distributors should be increased.
Marketing team
1. Brand awareness campaigns should be initiated.
2. Brand promotional activities must be executed in rural areas.
3. Holistic marketing approach must be followed.
4. Collaborating with beverage chains like café coffee day or barista to create a international brand image.
5. Organizing an events or exhibitions in corporate places to create brand awareness.
6. Collaborate with some health clubs to create product goodwill as a health conscious product.

53. 53
FutureProspects:-
 Mrs. Bector’s (Cremica group) is willing to invest 1.5 to 2.5 billion in PMFP (Punjab mega food park).
 Projected revenue to 1000 crores by 2020 from 800 crores.
 With the investment of 30 crores for setting up food processing facility in Haryana to cater domestic &
export market.
 Expansion in metro cities.
 The only threats to this strong growth trajectory remain the high portion of unorganized trade, the limited
distribution network of new entrants and the pressure on profit margins due to increasing competition.
 But these are likely to be diminished importance as proportion of organized trade increases and players
invest in can hope to leverage the trai improving distribution.
 Going forward, the industry prospects remain attractive, and new graduates can hope to leverage the
training and on the job learning at the leading players in various functional roles, across the Metros as well
as the interior heartlands on india.

54. 54
Bibliography

55. 55
Bibliography/Refrences:
Websites-
o www.cremica.in
o www.smallenterpriseindia.com
o www.owler.com
Reference-
o Kotler,P.,K.Keller.,A.KoshyandM.Jha . MarketingManagement:A SouthAsianPrespective.New Delhi:
PearsonPrentice Hall.

56. 56
Questionnaire

57. 57
Que No.
Description
1 How oftendoyoueat biscuits?
a. Everyday
b. Ocassionally
c. Snacks
2 Whichtype of biscuitsyounormallyprefer?
a. Branded
b. Bakery
c. Others
3 Whichcategory of biscuitsyounormallyprefer?
a. Cream
b. Salty
c. Cookies
d. Digestive
e. Others
4 Before buyingbiscuitswhichfactorsdoyouconsider?
a. Brand
b. Availability
c. Taste
d. Price
5 Whichbrand do youprefer?
a. Britannia
b. Parle
c. Cremica
d. Sunfeast
e. Others
6 Why notcremica?
a. Brand
b. Availability
c. Taste
d. Price
7 Whichbrand has the maximumsale inyourstore?
a. Britannia
b. Parle
c. Cremica
d. Sunfeast
e. Anmol
f. Funjoy
8 Are you satisfiedwiththe supplychainof ourbrand?
a. Verysatisfied
b. Satisfied
c. Neutral
d. Dissatisfied
9 Wouldyoueat biscuitasa mid-morningsnack?
a. Yes
b. No

58. 58
10 Whichrange youlike?
a. Rs.5
b. Rs.10
c. Rs.15-20
d. Rs.25-30