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Qwertyuiopasdfghjklzxcva;pl;aloknmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiop...
Table of ContentsReview of Related Literature ...............................................................................
Survey Form-Explained Logic & Underlying Need .................................................. 43    Sales exercise:- .....
Below are the consolidated findings for Central Delhi........................................... 80    Consolidated Graphi...
Title of the Project undertakenJuice Market-Tropicana & Competition AnalysisNeed & Objectives of the projectTropicana busi...
new consumer base in turn increasing sales and hence forth increasing its       revenue    2. Calculating hidden sales fro...
Review of Related LiteratureThe study of related literature for conducting research is important and helpful inunderstandi...
anthropology and neuroscience, the profession is now widely recognised a science,allowing numerous universities to offer M...
According to David Campbell, George Stonehouse, Bill Houston (1999) ,marketshare is measure of an organizations performanc...
Development of an Approach to the ProblemDevelopment of an approach to the problem includes formulating an objective orthe...
Cross Selling:Khurana, author of Information technology for retailing defines cross selling assales techniques of selling ...
Rosemary Varley (2001) indicated that visual merchandising is used for aspect ofproduct management that is concerned with ...
Research Methodology adoptedResearch in common parlance refers to search for knowledgeThe term research refers to the syst...
organization and helps them to create value for their product to customers by givingthem better services, higher managemen...
FMCG Industry Snap Shot:     Indian FMCG                                     Personal care &                           Ste...
Category Wise Share of Sector:                                                         Hair Care                          ...
Juice Market -IndiaIndian Juice industry has emerged as a great opportunity for non-alcoholic drinksmarket and poses great...
India: Consumption StoryEstimated juice market in India is worth RS 600Crore.So with an ever-growingcustomer base of Middl...
Segmentation analysis for fruit juiceIntroduction:India is the second largest market for foods and vegetables in the world...
quantities by children below 6 years of age. Further, they are available in 200 mlpacks which are just right for kids.The ...
availability, ergonomic packaging, portability, and other factors that make up anindividuals perception of value.In order ...
lucrative. Among the market drivers are the increasing cost of healthcare, ageingpopulation, consumer health awareness and...
Details of Actual work undertakenTropicana-Impulse BuyPepsiCo sees Tropicana as an Impulse buy in India hitherto and not a...
So a 1L pack of Tropicana with M.R.P 75INR cost 65 INR to Retailer generates ahandsome margin of 9.7 INR. So a Wills Navy ...
Classification of Market: Delhi& NCRIn     Delhi     Tropicana         and   Gatorade            is        sold   in   3  ...
For Tropicana division Traditional Trade forms heart of their business,so they     make their best to maximize the penetra...
S.A.M.T:-To much of the extent it is similar to M.T but it may/may not have     multiple chains of stores         .Example...
Understanding Market Scenario:-FaridabadInitially to have a better understanding of how things work and to get doubt clear...
Learning’s: Faridabad-Understanding Reporting Hierarchy and Responsibilities:-One Central executive is responsible for exe...
Myopic Hierarchy View-Faridabad                                     Central                                   Executive-1 ...
Display Enhance Counter PullDisplay at the point of purchase can be rightly describe has a “clincher” in the marketingproc...
b) He should have good infrastructure to carry out day to day operational              activities-distributor must possess...
normally don’t take more than a week to reach the retailers. FMCG products arenormally a high volume ball game and product...
Distribution Cycle-Tropicana and Gatorade                                           Factory                               ...
Tropicana is manufactured in India in Pune.From Pune goods are supplied to Carryand forward agent .Carry and forward agent...
Distributor Web in Delhi &NCR (Faridabad &Gurgaon)So there are total 12 distributors doing business for Tropicana.36
Average Turnover per disributor(Rs Crore)                         Avge Turnover                                           ...
Faridabad Market:-Faridabad is a developing city .Population is unevenly spread, some places are lyingvacant and some plac...
S.W.O.T analysis of Faridabad Tropicana Market      Strengths      • Width-wise excellent coverage(e.g.: outlets        co...
Survey Details:Area assigned to me was Central Delhi.Area DetailsCentral Delhi is an administrative district of the Nation...
Birds Eye View-Central DelhiCoverage Areas-Finding Tropicana GapsAreas given below were covered to find market gapsS.No   ...
Questionnaire Details for Tropicana –Central DelhiSerial .No   Fields of Questionnaire   Data to be filled1            Nam...
Survey Form-Explained Logic & Underlying Need     1) Name, Address and contact number of shop: - Enables speedy communicat...
Sales exercise:-Third phase of the exercise was to use the knowledge calculated from Phase 1 andPhase 2 of the project and...
Sales Progress:-S.   Name of Shop      Address          Contac   Quantity-   Quantity-       Billing(Tro   Billing(GatNo  ...
9    Mohan Medicos   104-ganesh    259916   1             0         0   139.88                     medicos       44       ...
Estimation ExerciseEstimation plays a very vital part in business development .This helps the uppermanagement to set the r...
Estimation ExerciseTable -Manpower EstimationArea                  Population   Shop           Shop         Ratio=populati...
Sales Forecast Estimation from InstitutionsThis table shows immense potential in Institutions for Tropicana and GatoradeIn...
21,96,90,000.0                                                0Schools   4862   40 cases 200ml,5 cases RTD,5   Rs.        ...
Understanding Yearly Sales Forecast:-An institution is another dimension where lucrative business opportunity exists forPe...
Interpretation and AnalysisMarket under Scanner:-Karol Bag                     Karol Bag Tropicana Status             No J...
Karol Bag:-Deciphering Ground RealityKarol bag, being a shopper’s paradise attracting high footfall of 2000 people aminimu...
Market under Scanner-Gole Market, C.P, PaharGanj             C.P,Paharganj,Gole Market-Tropicana                          ...
GoleMarket, C.P ,PaharGanj:-Deciphering Ground RealityTropicana’s Share is 46% in GoleMarket,CP,Pahar-Ganj. ,6% is the sha...
Market under Scanner-ChandniChowk               Tropicana Status-Chandni Chowk                                            ...
ChandaniChowk:-Deciphering Ground RealityChandniChowk presents a very sorry picture for Tropicana and Gatorade.Staggering ...
Market Under Scanner-Jhandewalan                               Jhandewala-Status Tropicana                                ...
Jhandewalan:-Deciphering Ground RealityVideocon Bhawan is the landmark for Jhandewalan. Tropicana domination is 9%followed...
Market under Scanner-Sadar Bazar                       SadarBazar -Tropicana Status                            Real Only  ...
Sadar Bazar:-Deciphering Ground RealitySadarBazar on the footprints of Sadar Bazar presents a very sorry picture forTropic...
Market under Scanner-South Patel Nagar                  Real                         South Patel Nagar-Tropicana          ...
South Patel Nagar:-Deciphering Ground RealityScenario of Tropicana domination comes to a halt at South Patel Nagar.Real sh...
Market under Scanner-East Patel Nagar and RajinderNagar                  East Patel Nagar, Rajinder Nagar-Tropicana Status...
East Patel Nagar and Rajinder Nagar-Deciphering ground realityAbove avenue present a great avenue of business for Tropican...
Market under Scanner-West Patel Nagar                   West Patel Nagar-Tropicana Status                                 ...
West Patel Nagar-Deciphering ground realityIn West Patel Nagar market real’s is exclusively available in 14% shops and sam...
Interpretation and analysis for SalesExerciseWe were able to sell 33 mono cartons of Gatorade, and 2 cases of Tropicana an...
a) After visiting West Delhi brief was re instated that there are a lot of market gaps in        execution of Tropicana an...
Competitor beverages MarginAnalysis:-Competitor margin analysis is very important from Tropicana’s division point of view....
Traders and Distributor MarginsCompany         Catego   Pack Size     MRP          TP      TM      Distributor      DM    ...
Company       Catego      Pack      MR       TP       TM       Distributor             DM         SchemesName          ry ...
0                 sweet lassi        300 ml                        12              11.508               4.10%             ...
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
35643269 juice-market-analysis-tropicana-competition
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  1. 1. Qwertyuiopasdfghjklzxcva;pl;aloknmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzx Juice Market Analysis-Tropicana &cvbnmqwertyuiopasdfghjklzxcvbnmq Competitionwertyuiopasdfghjklzxcvbnmqwertyui Section Bopasdfghjklzxcvbnmqwertyuiopasdfg 3/4/2013hjklzxcvbnmqwertyuiopasdfghjklzxc Vaibhav Jainvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnm
  2. 2. Table of ContentsReview of Related Literature ................................................................................................. 7FMCG Industry Snap Shot: ................................................................................................. 15 FMCG industry size .............................................................................................. 15 Category Wise Share of Sector: ........................................................................... 16 FMCG Growth: urban and rural ............................................................................ 16India: Consumption Story..................................................................................................... 18Segmentation analysis for fruit juice ............................................................................... 19 Geographic segmentation: .................................................................................... 19 Demographic segmentation: ................................................................................. 19 Socio-economic segmentation: ............................................................................. 20 Psycho graphical segmentation: ........................................................................... 20Details of Actual work undertaken ...................................................................................... 23 Tropicana-Impulse Buy ...................................................................................... 23 Tropicana: Extremely Lucrative product for Retailer ............................................. 23 Classification of Market: Delhi & NCR .................................................................. 25 Understanding Market Scenario:-Faridabad ......................................................... 28 Understanding Reporting Hierarchy and Responsibilities:-................................... 29 Myopic Hierarchy View-Faridabad ........................................................................ 30 Understanding -Merchandising/ Displays: - .......................................................... 30 Distributor’s Role .................................................................................................. 31 Understanding Mechanics of Distribution Channel ............................................... 32 Distributor Web in Delhi &NCR(Faridabad & Gurgaon) ........................................ 36 Faridabad Market:- ............................................................................................... 38S.W.O.T analysis of Faridabad Tropicana Market ........................................................... 39 Area Details .......................................................................................................... 40Birds Eye View-Central Delhi .............................................................................................. 41 Coverage Areas-Finding Tropicana Gaps ............................................................ 41 Questionnaire Details for Tropicana –Central Delhi .............................................. 422
  3. 3. Survey Form-Explained Logic & Underlying Need .................................................. 43 Sales exercise:- .................................................................................................... 44 Pricing of Tropicana and Gatorade ....................................................................... 44 Sales Progress:- ................................................................................................... 45Estimation Exercise .............................................................................................................. 47 Estimation Exercise .............................................................................................. 48 Understanding Fields -Manpower Estimation ....................................................... 48 Deciphering-Man power Estimation ...................................................................... 48 Market under Scanner:-Karol Bag ........................................................................ 52 Karol Bag:-Deciphering Ground Reality .................................................................... 53 Market under Scanner-Gole Market, C.P, Pahar Ganj.......................................... 54 Gole Market, C.P ,Pahar Ganj:-Deciphering Ground Reality ................................. 55 Market under Scanner-Chandni Chowk ................................................................ 56 Chandani Chowk:-Deciphering Ground Reality ....................................................... 57Market Under Scanner-Jhandewalan ................................................................................ 58 Jhandewalan:-Deciphering Ground Reality .............................................................. 59 Market under Scanner-Sadar Bazar ..................................................................... 60 Sadar Bazar:-Deciphering Ground Reality ................................................................ 61 Market under Scanner-South Patel Nagar ............................................................ 62 South Patel Nagar:-Deciphering Ground Reality ..................................................... 63 Market under Scanner-East Patel Nagar and Rajinder Nagar .............................. 64 East Patel Nagar and Rajinder Nagar-Deciphering ground reality ....................... 65 Market under Scanner-West Patel Nagar ............................................................. 66 West Patel Nagar-Deciphering ground reality .......................................................... 67 Understanding Questionnaire-Competitor’s Margin:- ............................................ 70 Traders and Distributor Margins ........................................................................... 71Findings of Study:- ................................................................................................................ 78Summarized data s for Central Delhi is as follows .......................................................... 78 Consolidated Graphical Findings –Central Delhi .................................................. 79 Findings Consolidated –Central Delhi................................................................... 803
  4. 4. Below are the consolidated findings for Central Delhi........................................... 80 Consolidated Graphical Findings West Delhi ........................................................ 81 Areas Covered –West Delhi ............................................................................... 82 Consolidated Graphical Findings-North Delhi ................................................. 83 Area Covered-North Delhi .................................................................................. 84 This data was collected by team members. .......................................................... 84 Consolidated Graphical Findings-East Delhi ................................................... 85 Findings-Estimation Exercise ............................................................................... 87 Finding Distributor details:-Unified ........................................................................ 88 Reaching Distributor Point:- ....................................................................................... 88 Infrastructure:-................................................................................................................ 89 Expenses of Distributor:- .............................................................................................. 90 Dissatisfied Distributor:- ............................................................................................... 91References and Bibliography. ........................................................................................... 1034
  5. 5. Title of the Project undertakenJuice Market-Tropicana & Competition AnalysisNeed & Objectives of the projectTropicana business for PepsiCo in Delhi is not reaping profits for the firm. PepsiCo’sTropicana in juice market faces a daunting challenge from Daburs Real in Delhi.Dabur’s has staggering 60% market share in Industry whereas as of now Tropicanastands at meager 20%.So clearly there is a visible gap in terms of market presencewhere Tropicana is lagging.According to survey done by AC-Nielson ,out of 60,000shops Tropicana is present only in 12000 shops and price of knowing the name ofshops cost 12L to company/ Need of this project was felt as company wanted todepict the real market scenario from Quality man power, free from any biases andpresenting the grass root level reality of the product’s presence in Delhi region. Aftertaking the feedback/suggestions from summer trainees they can work on their softspots. Secondly, company require practically innovating strategies on how toincrease sales figure from 75 Crore to 200 Crore-which clearly focuses on the bigpicture and hence, enabling the brand Tropicana to increaseits appeal and value.Also the untapped shops asks for more resources for better coverage and betterexecution.On 17-04-2010 PepsiCo launched their new product Gatorade Sports MixCompany’s aim is to make sure that Gatorade reaches the counter where Tropicanais already present and also to make clients aware of the productThe following are the objectives of the product undertaken: 1. Find the market “Where Dabur’s Real is present but Tropicana is missing??”-directly enabling the Tropicana to increase its presence across5
  6. 6. new consumer base in turn increasing sales and hence forth increasing its revenue 2. Calculating hidden sales from untapped markets and doing human resource estimation. 3. Finding places where PepsiCo can sell its Tropicana in high volumes that differ from traditional trade. E.g. placing Tropicana within the cafeteria of Life Insurance Corporation facility located in “Canaught-Place” or placing Gatorade at various fitness centre like Goldie’s-Gym to give incremental growth to organization and hence increase its value. 4. How to optimize supply chain of Tropicana? 5. Why Dabur’sReal is ubiquitous across Delhi when compared to Tropicana? 6. How their business model differs? 7. Do Competitive analysis of margins and scheming of beverage industry-find out the retailer margins and distributor margin of competitor beverages. This will enable organization to know what offerings are competitors making to clients, 8. Preparing a blue print on how to turbo charger the sales of Tropicana from 75Crore Last year to 200Crore this yearThe entire project was divided into three phase: Market Gaps • Finding untapped market for tropicana • Find out market share of Tropicana and Real • Improvement -Recommendations Estimatie Exercise • Calculating manpower needed to cover untapped shops • Finding untapped sales potential Sales Exercise • Hands on Experience for Tropicana/Gatorade • Traditional Trades-West Delhi6
  7. 7. Review of Related LiteratureThe study of related literature for conducting research is important and helpful inunderstanding the need for the research undertaken. It is also done in order tofamiliarize oneself with the work that has been done in the areas of one’s interestand to get some useful information in order to understand the problems and issuesof the research topic. Thus, it was essential to review the relevant literature for thevariables of feeling of alienation and frustration and the effect of guidance on theabove mentioned variables of mothers of mentally challenged children. Only themajor research findings are given here below.MARKETING:Marketing is an integrated communications-based process through which individualsand communities discover that existing and newly-identified needs and wants maybe satisfied by the products and services of others.Marketing is defined by the American Marketing Association as the activity, set ofinstitutions, and processes for creating, communicating, delivering, and exchangingofferings that have value for customers, clients, partners, and society at large. Theterm developed from the original meaning which referred literally to going to market,as in shopping, or going to a market to buy or sell goods or services.The Chartered Institute of Marketing, which is the worlds largest marketing body,defines marketing as "The management process responsible for identifying,anticipating and satisfying customer requirements profitably.Marketing practice tended to be seen as a creative industry in the past, whichincluded advertising, distribution and selling. However, because marketing makesextensive use of social sciences, psychology, sociology, mathematics, economics,7
  8. 8. anthropology and neuroscience, the profession is now widely recognised a science,allowing numerous universities to offer Master-of-Science (MSc) programmes. Theoverall process starts with marketing research and goes through marketsegmentation, business planning and execution, ending with pre and post-salespromotional activities. It is also related to many of the creative arts. The marketingliterature is also infamous for re-inventing itself and its vocabulary according to thetimes and the culture.According to Boone Kurtz Mackenzie Snow,“Marketing is an organizational functionand a set of process for creating, and delivering value to customers and formanaging relationships in way that benefit the organization and its stakeholders”MARKET SHARE:Market share, in strategic management and marketing is, according to CarltonONeal, the percentage or proportion of the total available market or market segmentthat is being serviced by a company. It can be expressed as a companys salesrevenue (from that market) divided by the total sales revenue available in thatmarket. It can also be expressed as a companys unit sales volume (in a market)divided by the total volume of units sold in that market. It is generally necessary tocommission market research (generally desk/secondary research, althoughsometimes primary research) to estimate the total market size and a companysmarket share.8
  9. 9. According to David Campbell, George Stonehouse, Bill Houston (1999) ,marketshare is measure of an organizations performance with regard to its ability to win andretain customers. It can be measured by either volume or by value.Malcolm McDonald(2002), highlights thatMarket Share is the proportion of actualsales(either volume or value) within a defined market, and is thus a measure ofsatisfying customersMARKET SHARE ANALYSIS:Market share analysis is an important part of market analysis and indicates how well afirm is doing in the marketplace compared to its competitors. It is a part of marketingresearch process.Stages of marketing research processProblem DefinitionThe first step in any marketing research project is to define the problem. In definingthe problem, the researcher should take into account the purpose of the study, therelevant background information, what information is needed, and how it will be usedin decision making. Problem definition involves discussion with the decision makers,interviews with industry experts, analysis of secondary data, and, perhaps, somequalitative research, such as focus groups. Once the problem has been preciselydefined, the research can be designed and conducted properly.9
  10. 10. Development of an Approach to the ProblemDevelopment of an approach to the problem includes formulating an objective ortheoretical framework, analytical models, research questions, hypotheses, andidentifying characteristics or factors that can influence the research design. Thisprocess is guided by discussions with management and industry experts, casestudies and simulations, analysis of secondary data, qualitative research andpragmatic considerations.Data Preparation and AnalysisData preparation includes the editing, coding, transcription, and verification of data.Each questionnaire or observation form is inspected, or edited, and, if necessary,corrected. Number or letter codes are assigned to represent each response to eachquestion in the questionnaire. The data from the questionnaires are transcribed orkey-punched on to magnetic tape, or disks or input directly into the computer.Verification ensures that the data from the original questionnaires have beenaccurately transcribed, while data analysis, guided by the plan of data analysis, givesmeaning to the data that have been collected. Microsoft Excel is used for datainterpretation.10
  11. 11. Cross Selling:Khurana, author of Information technology for retailing defines cross selling assales techniques of selling additional products to existing customersJane W.DArista (1994) highlights that cross selling merely reflect an institutionsefforts to inform customer of other services available .Or it may involve explicitpackaging arrangements ,in which access to one service depends on purchase ofanotherAccording to GalitShmueli, Nitin R. Patel, Peter C.Bruce (2007) cross selling is anopportunity. Once a customer has "taken the bait" and purchase one product, try tosell them another while you have their attentionVisual MerchandisingBhalla author of Visual merchandising sates that -Visual merchandising is defined asthe presentation of any and all merchandise at its best:(i)color coordinated-(synchronized-colors),(ii)accessorized(related-roducts/props);and (iii)self explanatory(descriptive/illustrative)Visual merchandising is the activity of promoting the sale of goods, especially bytheir presentation in retail outlets. (New Oxford Dictionary of English, 1999, OxfordUniversity Press)11
  12. 12. Rosemary Varley (2001) indicated that visual merchandising is used for aspect ofproduct management that is concerned with presenting the product within a retailoutlet to its best advantage.Ko Floor (2006) observed that Visual Merchandising injects life into the store as well,dramatizing the brand and merchandise offer.NirupamaPundir observes that visual merchandising is the “icing on the cake”. It’sthe first tactical representation of projected merchandise that the customer will see.12
  13. 13. Research Methodology adoptedResearch in common parlance refers to search for knowledgeThe term research refers to the systematic method consisting of enunciating theproblem , formulating a hypothesis collecting the data , analyzing the facts andreaching the certain conclusions either in the form of solution towards the concernproblem or in certain generalization for some theoretical formulation .Research Methodology is a way to systematically solve the research problem .It maybe understood as a science of studying how research is done scientifically.For completing the project work, data inputs were collected from the followingsources:Primary Data: Collected data through discussion with the Sales manager/Area sales manager of PepsiCo.Secondary Data: Collected data from personnel manual of Pepsi. Collected data from different magazines, journals, News papers and Internet.Research method being followed is Survey Method and Observations. Thesampling unit is the basic unit containing the elements of the population to besampled. Sampling unit for the study include different retailers of Central Delhi.After covering particular market data digging is performed and consolidated resultsof each market is shown in organization in graphical format along withsuggestions/scope of improvement to maximize market penetration of our product.This easy to understand data present the unbiased picture of market to the13
  14. 14. organization and helps them to create value for their product to customers by givingthem better services, higher management by letting them know their soft spots andfinding areas of immense potential in markets .Output of this survey was given asfeed back to Territory Development Manager and Area Sales Manager ,which whenconsolidated is presented to upper management ,discussed in organizationalreviews .Area wise input is given to central executive of that region enabling him toknow the opportunities available for him to do more business which in term helps himto achieve his target and ultimately yielding to better appraisal and growth in firm.14
  15. 15. FMCG Industry Snap Shot: Indian FMCG Personal care & Steady double digit industry size Food products growth in the estimated at dominate the sector around US$ 25 bn. sector Many categories Rural India are currently small contributes c. 33% andoffer huge of the overall potential FMCG sector FMCG industry sizeIn Rs billion MAT DEC 2008 MAT DEC 2009FMCG Industry Size 1,023.9 1,161.1Growth rate (%) 13.4%Source: AC Nielson15
  16. 16. Category Wise Share of Sector: Hair Care 7% hair care OTC 7% fabric care baby products 11% care 4% 2% others Food Products 5% 40% household Personal Care 4% 20%Source:AC Nielson40% share of food products in F.M.C.G offers whole set of opportunity for juicesegment.FMCG Growth: urban and rural16
  17. 17. Juice Market -IndiaIndian Juice industry has emerged as a great opportunity for non-alcoholic drinksmarket and poses great opportunity for many firms.According to RNCOS (industry research firm) latest research, “Indian Non-AlcoholicDrinks Forecast to 2012”, the juice market (including both fruit and vegetable) hasemerged as a fastest growing segment of the Indian non-alcoholic drinks marketover the recent past. Market research foresees the Indian market for fruit/vegetablejuices to grow at a CAGR of around 24% (in volume terms) and around 30% (invalue terms) from now till 2012.It is learnt that convenience and natural taste together with health-consciousnesshas played an important role in the growth of Indian juice market in recent years.Sales have been boosted by the changing lifestyle of the Indian middle-incomegroup amid rapid urbanization. Furthermore, it has been seen that cola sales havefallen dramatically after rising health concerns associated with it and this seem tohave benefited the fruit beverage industry. Tetra packs have emerged as a boon forproviding practically fresh and preservative-free juice.Number of Indian players have been entering or expanding their portfolio into thesegment, after acknowledging the enormous future market potential. Dabur India, forinstance, recently planned to expand its offering under flagship fruit drink brandReal. It is also planning to add two more variants as it eyes a bigger pie of theIndian fruit-based juice market. Another player, Parle Agro, the maker of mangodrink Frooti, announced its entry into the 100% juice market in late 2008. Othermajor brands include PepsiCo’s Tropicana and Coca-Cola’s Minute Maid.17
  18. 18. India: Consumption StoryEstimated juice market in India is worth RS 600Crore.So with an ever-growingcustomer base of Middle- Class, juice making companies will have wider access toconsumers who can shell out money to buy juices.So we can say with ever increasing disposable income and increasing awarenessamong consumers there is immense potential in Juice market in upcoming years.18
  19. 19. Segmentation analysis for fruit juiceIntroduction:India is the second largest market for foods and vegetables in the world. Theproduction of fruits account for 48.5 million tones. However, the fruit juice market hasnot been fully tapped because of poor infrastructure and storage facilities, and highlyunorganized market.However, with people turning more health conscious, the non-carbonated beverageshave become one of the fastest growing businesses. The major growth drivers infruit juice market are increase in health consciousness, disposable incomes, andmore sophisticated cocktail culture. The category of fruit juices are dominated byPepsi with its brand Tropicana, Dabur Foods with its brand Real, Coca Cola Indiawith its brand Maze. The market now has a variety of fruit juices like 100 % fruitjuice, nectar, fruit drinks, fruit-based milk drinks and fruit-based soya milk.Geographic segmentation:The fruit juice market share is concentrated in the metros like Delhi, Mumbai, Kolkataand Chennai; mini metros like Benguluru, Hyderabad, Pune, Chandigarh,Ahmadabad and small cities like Ludhiana, Amritsar and Jalandhar.The growth of the fruit juice market increased with the proliferation of thesupermarkets and malls in the metros and mini-metros.As a growing category, fruit juices must fight the battle to win the shelf space ofmarkets. Hundreds of new beverages are introduced every year. Even though moresupermarkets are being built in a larger size, their shelf space is still unable toaccommodate all of these new beverages in the market.Demographic segmentation:The regular consumers of fruit juices are children, educated housewives, executives,working professionals, young health-conscious adults and the ageing population.The fruit juice companies have targeted all the age groups by different juices. Thecustomized packaged fruit juices are targeted at kids below 6 years. They areavailable in number of flavors and fortified with calcium which is required in higher19
  20. 20. quantities by children below 6 years of age. Further, they are available in 200 mlpacks which are just right for kids.The different pack sizes like the half and one liter pack are aimed at increasing thein-home consumption of juices.Fruit juices are an instant source of energy which helped in tapping thesportspersons and kids who are actively involved in sports. For example, Pepsi’sTropicana has tied up with equestrian sports and polo clubs to build bridges with thewell-heeled young adults.The increasing cost of health care has helped widen the customer base to theageing population. Also, as fruit juices are rich in energy and nutrients, ill and postsurgery patients on liquid diet have increased the customer segment.Socio-economic segmentation:The fruit juice market has shown a tremendous growth in the recent years. One ofthe major reasons for this is the increase in the disposable income. Generally,individuals belonging to higher and middle socio-economic strata are the regularconsumers of packaged fruit juices. However, the 65 ml packs of mango Frootilaunched in Pune by Parle Agro for Rs. 5 has aimed at broadening the socio-economic customer segment.Psycho graphical segmentation:Healthy living is a growing trend. However, fruit juices have more to offer than justhealth. They provide an easy gateway to a healthy lifestyle. Consuming fruit juices isalmost an effortless switch compared to dieting or exercising and it does not requiremajor behavioral change. Active and health oriented people are no longer theprimary consumer of fruit juices. Nowadays, the consumer base for fruit juices isbroader. These products attract a wide range of consumers ranging from thosehaving specific health needs to those simply looking for healthy refreshments. In thenext few years, the fruit juice industry will be challenged by these savvy, confident,and opinionated consumers. They no longer see these beverages as simple thirstquenchers with health benefits. They see these products serving other needs that fita simple and logical proposition, such as ease of preparation, high level of20
  21. 21. availability, ergonomic packaging, portability, and other factors that make up anindividuals perception of value.In order to attract the kids segment, the Tetra packs have animated fruit characterswhich communicate the fun, taste, and nutrition aspect. Moreover, the parents cangive their children a portable beverage that is a healthy alternative to the nutritionallybankrupt soft drinks. They are designed in such a way as to fit in the Tiffinboxes.Further, there has been an increasing interest in more natural, organicproducts. Consumers perceive this as the next best thing to having a fresh fruit.Convenience is no longer the selling point, the naturalness is.However, there are certain consumers who are wary of packaged food, as they feel ithas preservatives and are not fresh. Thus, companies like PepsiCo, Dabur FoodsLtd. have developed preservative free fruit juice offering consumers with a greattaste and wholesome nutrition of freshly squeezed juice in hygienic and attractivepacks.However, despite of health benefits, some youngsters love to drink only carbonatedsoft drinks. Thus, some companies have developed carbonated fruit juices which donot contain caffeine and caramel coatings that are harmful to health.The increased consumer interests in fruit juices can also be attributed to the additionof minerals, vitamins and herbs associated with health, vigor, longevity andenhanced quality of life,. There is a niche which is now demanding more top quality,premium products and produced with added vitamins, minerals, fibs, soy or omega-3. There are niche customers who take juice as a part of their diet and do not botherabout the taste.For many consumers, flavor is the deciding factor. While orange, apple and mangodominate the market, other juices such as grapefruit, watermelon and orange-carrotcombination are also appealing to some. In order to match the traditional taste buds,traditional recipes like AaamkaPanna and jamun variants have been introduced inthe market.Conclusion:Product development and positioning will need to become more targeted, shiftingfrom mass market to a mass customized approach in which particular audiences areidentified by lifestyle, ethnic group and other factors. Thus, the fruit market is very21
  22. 22. lucrative. Among the market drivers are the increasing cost of healthcare, ageingpopulation, consumer health awareness and choice and scientific evidence ofcertain ingredients.22
  23. 23. Details of Actual work undertakenTropicana-Impulse BuyPepsiCo sees Tropicana as an Impulse buy in India hitherto and not a plannedpurchase. Aim of Tropicana division is to make it a planned purchase within Indiancommunity and make it a part of consumer’s daily breakfast. Impulse buy means anunplanned buy .When a family is going to market for grocery shopping, name ofTropicana Juice is never mentioned in the shopping list. It is only at the momentwhen consumer enters a shopping store and sees Tropicana he picks it up and buy.So SHELF-VISIBILITY is an important facet for sales of Tropicana. F.M.C.G goodslike tooth paste, soap are planned purchase.Aim of Tropicana Division In PepsiCo’s Gurgaon office is to make Tropicana aplanned purchase rather than an impulse buy.Tropicana: Extremely Lucrative product for RetailerBeing a great health product for consumer it is also a very lucrative product forretailer as well. It offers a trade down margin of 15% in addition to additionalscheming that can go up to 5% for Traditional Trade. Margin of Distributor is 5%.For easier assimilation look at the below tableTropicana 1 L Price INRCost Distributor 62.10Cost Retailer 65.21Cost Consumer (M.R.P) 75Margin Retailer 9.7823
  24. 24. So a 1L pack of Tropicana with M.R.P 75INR cost 65 INR to Retailer generates ahandsome margin of 9.7 INR. So a Wills Navy cut Cigarette costing 5INR generatesmargin of 50paisa to retailer. So on selling 20 cigarette retailer generates a revenueequivalent to selling 1 L Tropicana. So a sale of 100 INR retailers of 20 cigarettesmakes the same amount from sale of 75INR Tropicana 1L.24
  25. 25. Classification of Market: Delhi& NCRIn Delhi Tropicana and Gatorade is sold in 3 trades Modern Trade Stand Alone Market Modern Classification:Delhi&NCR Trade Traditional Trade 1. Traditional Trade-Traditional Trade is defined as all that trade that flows through traditional outlets, such as kiosks, corner shops, local mom and pop shops, open markets, etc. It represents all trade with the exception of that which flows through retail chains, supermarkets, or super stores Key Characteristics a) Traditional trade is characterized by a large complex network of independently owned retailers and distributors carrying primarily local or regional brands. b) It is the prevailing form of consumer trade in emerging markets. c) It can be difficult to penetrate for both national and multi-national firms given its highly fragmented nature, yet it serve as the conduit for reaching the largest percentage of the consumer populationImportance of Traditional Trade can be very easily judged by the following data25
  26. 26. For Tropicana division Traditional Trade forms heart of their business,so they make their best to maximize the penetration at T.T. Modern Trade:-Modern Trade is defined as all that trade that flows through retail chains, supermarkets, or super stores, etc.Key Characteristics:- a) Above an indexed covered area (different users have different indices but safe to say 3000 sq. ft. as the minimum) b) SKUs above an index number (again, different for different users, but again safe to peg it at above 2500) c) Bulk Buying/ Inventory management d) PAN India Presence. e) Discounting (and frequently passing it out to customers as well) f) Self Service with electronic billing and credit g) Example: Big bazaar, Wal-Mart, , Reliance Fresh26
  27. 27. S.A.M.T:-To much of the extent it is similar to M.T but it may/may not have multiple chains of stores .Example:-Garg-Dastak, Needs (18 stores in Gurgaon,SRS,Big Apple,EzeeDay Tropicana Share % T.T 35 30 25 Share % 20 2008 15 2009 10 5 0 Jan Feb Mar Apr May Jun Jul Aug Sep Tropicana Share% M.T 35 30 25 Share % 20 2008 15 2009 10 5 0 Jan Feb Mar Apr May Jun Jul27
  28. 28. Understanding Market Scenario:-FaridabadInitially to have a better understanding of how things work and to get doubt clearedwe were instructed to meet Central Executive of Faridabad for two days.Market CoveredSector Covered Number of Shops28 529 430 6Mom and Pop Shops 12Modern Trade Vishal Mega Mart,SRSSmart Facts-Faridabad a) Suburban City-Over 2 Million Population b) Generate about 60% revenue of Haryana State c) 50% I.T collected Haryana comes from Gurgaon & Faridabad28
  29. 29. Learning’s: Faridabad-Understanding Reporting Hierarchy and Responsibilities:-One Central executive is responsible for execution of Tropicana in Faridabad. Heleads a team of three P.S.R (Pepsi sales representative) and three merchandisersBefore the morning visit start C.E talks with all P.S.R’s and list down progress ofprevious day, compares it with actual target and gives them the feedback. Also heasked for the current days plan and any issues being faced by them. Task of C.E isto execute so it’s his responsibility that Products are being executed in the market upto the mark, sort out any grievance that P.S.R is having issues with, fix out pricing ofShop in Shop.P.S.R is responsible for taking orders; managing new customer base andmerchandiser are responsible for doing visual merchandising on all the shops.Mode of transportation for merchandiser is bicycle and for P.S.R is motor cycle.Each P.S.R covers daily 30 shops and merchandiser 25 shops.Every P.S.R has a Tropicana route book. It contains the following fields a) Name of Shop. b) Stock Details of Retailer c) Order Details –Previous Order Details, Current order details d) Replacements if anyThis route book serves as input for distributor for order processing. Also data from allP.S.R is consolidated by C.E and presented to Area Sales manager.29
  30. 30. Myopic Hierarchy View-Faridabad Central Executive-1 Merchandisers- P.S.R-3 3This is a myopic hierarchy because it sees the market from a grass root level anddeals with people that only interact with retailers on a daily basis.Understanding -Merchandising/ Displays: -Proper merchandising and display at the store level promotes sales; it promotes theconsumer to switch over to the displayed brand ignoring existing brand loyalties; itpersuades him to buy “now” rather than latter; and it makes him buy more than theoriginally intended quantity. All these are essentially sales promotional functions. Whileadvertising can only make a consumer aware of the product or generate a desire for it,merchandising/ display often motivates a consumer to buy a product instantly. Point ofpurchase displays are one of the most widely used sales promotions tools. With theproliferation of brands, innovative displays have become a prerequisite for success. Inthe store brands compete with each other for consumer’s attention.30
  31. 31. Display Enhance Counter PullDisplay at the point of purchase can be rightly describe has a “clincher” in the marketingprocess. When awareness and interest has been created in the consumers mindthrough advertising and other promotional measures, a good display in the store canhelp to clinch a sale. The displays are also effective in inducing brand switching. Aconsumer normally goes to a retail outlet to purchase his usual brand. At the retailoutlet, a good display of a competition brand can command his attention and he maybuy the competing brand. In other word Good display can lead to impulse buying andbrand switching. A good display is the surest way to attract the consumers. It pulls theconsumers to the consumers. In fact, displays have their origins in the age old sayingthat “goods well displayed are half sold”.Display can be of various types- window display, wall display, counter display, aerialdisplay, or floor display, depending on where it is fixed. Display materials to constitute alarge spectrum, like posters, danglers, stickers, mobile wobblers, steamers, balloons,etc. To enhance the display effect, manufacturers use several gadgets and approaches.Illuminated designs, motion displays, sky writings, etc., add to the display effect. Somecompanies organize display units locate them at vantage points within the store toattract store traffic. Skillfully designed and strategically located display units canenhance the sales appeal. More and more firms are going in for innovative displays togive their brands visibility.Distributor’s RoleThere is one distributor that serves entire Faridabad region. Along with Tropicana healso deals with other products of Godrej Ambi Pure, Parachute hair oil to name afew. Distributor is appointed by the company and following points are taken intoconsideration while appointing a good distributor. a) Distributor needs to have good market reputation and links.31
  32. 32. b) He should have good infrastructure to carry out day to day operational activities-distributor must possess a warehouse, vehicle for delivering order and manpower who can work as P.S.R and Merchandisers. c) Other products that distributor sells also plays an important role and tells about reputation and worthiness of distributor.Salary of P.S.R and Merchandiser is paid by the distributor that later is reimbursedby the company, .P.S.R and Merchandisers are not on company pay roles.It must be noted that it is the Distributor and P.S.R who sells the product and not theCompany official. So an assiduous distributor is required to ameliorate the product.Understanding Mechanics of Distribution ChannelThe supply chain of products in the FMCG market in India is one of the longestsupply chains an industry could really have. There are as many as 5 levels ofintermediaries involved in the entire supply chain through which a product passesbefore reaching the end consumer. What has been observed is that even thoughthese FMCG companies are big multinationals and Indian but face a major challengeof making their products available in the market in the right quantities and in the righttime. This is simply because these companies don’t really have a wide network ofsales agents and other force which is required and is ideal for catering their productsto the markets.This aspect is taken over by distributors, wholesalers and retailer whose margins onthese products actually double the price of these products when a final consumerbuys it. The margins kept by these intermediaries range from 2% to 5%.The products in this industry are transported from manufacturing units via c & fagencies or warehouse to distributors who further sell the same to wholesalers orstockiest who finally sell it to the retailers in the market. These products aretransported either via roadways or railways within the domestic markets and32
  33. 33. normally don’t take more than a week to reach the retailers. FMCG products arenormally a high volume ball game and products have to essentially be available inthe market at all given points of time and at all given points of purchase andtherefore the distribution activities are highly volatile and dynamic. The supply ofproducts takes place virtually on a daily basis in fixed quotas or otherwise, toretailers as per their requisitions and the anticipation of demand and theperformance of products in the recent past. All such criteria are taken intoconsideration before the quantum of products being dispatched to the next level ofintermediary. Since it’s a volume game, manufacturers make all possible efforts toboost sales and promote their distributors to earn more and more orders from theretailers and wholesalers. A close check is maintained on the flow of the products ona daily, weekly, fortnightly and monthly basis to determine the trend in the businessand flow of products and consumption. This activity also helps to find out drawbacksof the distribution system, if any, and rectify them within time.33
  34. 34. Distribution Cycle-Tropicana and Gatorade Factory Carry and Forward Distributor Modern Trades Wholesalers Retail Trade Consumers34
  35. 35. Tropicana is manufactured in India in Pune.From Pune goods are supplied to Carryand forward agent .Carry and forward agent furthers supplies it into two divisions:-1) C&F Agent directly send the goods to Modern Trade like Big Bazar ,Spencer2) C&F Agent send it to distributor.Distributor further can sell the goods to retailers or wholesalers.1) Wholesalers further sell goods to retailer which then is received by theconsumers.2) Retailers receiving goods directly from company’s distributor can sell goods toconsumers.Advantages of purchase from Companies Distributor over Wholesalers. Company WholeSalers Distributor35
  36. 36. Distributor Web in Delhi &NCR (Faridabad &Gurgaon)So there are total 12 distributors doing business for Tropicana.36
  37. 37. Average Turnover per disributor(Rs Crore) Avge Turnover 3.85 2.5 1.2 0.9 2007 2008 2009 201037
  38. 38. Faridabad Market:-Faridabad is a developing city .Population is unevenly spread, some places are lyingvacant and some places are densely populated.Since, it is a growing market retailersare very friendly .Width wise coverage is excellent and the company is working onthe concept of depth. It implies that number of shops covered is healthy, but sinceit’s a growing depth of Tropicana can be grown, means more cases can be sold.In sector 28 there are line of shops that only keep Tropicana and not Real. Peopleare buying Tropicana and scheme of one glass free is doing wonders for company.But places where Modern Trade and Traditional trade are located nearby concept ofcannibalization can be seen.A M.T offers Tropicana at Rs 60 where as T.T is sellingthe same thing for Rs 75.So consumer prefers to go to M.T rather than T.TVisual merchandising needs to tighten up .Attractive merchandising are missingProper Utilization of P.O.P material needs to be done.Consumer trends differs according to areas (sector) Counters Infrastructure & StockHolding Capacity differs according to the areasAlso consumer still think of Tropicana as imported product and very few people knowthat it is a product of PepsiCo. So customer awareness is lackingSince Faridabad is a growing city many educational institutes, hotels, privateorganizations are mushrooming in the city, so there lies a big opportunity forTropicana to sell.38
  39. 39. S.W.O.T analysis of Faridabad Tropicana Market Strengths • Width-wise excellent coverage(e.g.: outlets covered,facings,stock ) • Aggressive sales team. • Tropicana monopoly • Excellent Push strategy implied. • Tropicana 100% enjoys image of quality health product among health conscious. • Constantly updating counter network. • Latest glass promotion. Weakness • Visual Merchandising -Meager share of eyeball of customer • Lacking PULL STRATEGY in terms of V.M. • Big fish eating small fish-independent retailers suffering. • Still looked upon as Imported product vis-a-vis Real. • Unlike C.S.D, dedicated chillers for Tropicana missing Opportunities • Educational institutes-School, Colleges • Hospitals • Medical Store • Hotels • Government Undertakings Threat • Cheap variant ofJuicesSo, Faridabad is likea ticking time bomb for Tropicana that is still to explode and isarea of immense potential.39
  40. 40. Survey Details:Area assigned to me was Central Delhi.Area DetailsCentral Delhi is an administrative district of the National Capital Territory of Delhi inIndia. It is bounded by the Yamuna River on the east and by the districts of NorthDelhi to the north, West Delhi and South West Delhi to the west, New Delhi to thesouth, and East Delhi to the east across the Yamuna.Central Delhi has a population of 644,005 (2001 census), and an area of 25 km²,with a population density of 25,759 persons per km².Central Delhi houses the central business district and high-rises. It includesShahjahanabad (Old Delhi) which served as capital of the Mughal Empire, and ishome to the monuments like the Delhi Fort and the Jama Masjid, Delhis principalmosque.40
  41. 41. Birds Eye View-Central DelhiCoverage Areas-Finding Tropicana GapsAreas given below were covered to find market gapsS.No Area Name1 ChandniChowk2 Karol Bag3 Canaught Place4 Patel Nagar –WestPatelNagar,EastPatelNagar,SouthPatelNagar5 Old Rajindernagar6 Sadar Bazar7 PaharGanj8 Gole Market9 Jhandewalan10 Shadipur11 PaharGanj41
  42. 42. Questionnaire Details for Tropicana –Central DelhiSerial .No Fields of Questionnaire Data to be filled1 Name of Shop Shop Name2 Address Shop Address3 Contact number Phone number4 Real Present Yes/No5 Tropicana Present Yes/No6 Real Facing Number of facings of Real7 Tropicana Facing Number of facings of Tropicana8 Real Stock Estimation-Real Stock9 Tropicana Stock Estimation-Tropicana Stock10 Tropicana PSR present Yes/No11 Gatorade Powder Present Yes/No12 Visual Merchandising Excellent/Poor/N.A13 Estimated Cases consumption in a week Consumption(week)14 Issues/suggestion Feedback retailer/surveyor42
  43. 43. Survey Form-Explained Logic & Underlying Need 1) Name, Address and contact number of shop: - Enables speedy communication for business transactions and concerned business related exercise. Also can be used for future purposes, become a reusable component for the organization. 2) Real present:-: This tells about competitor’s availability. 3) Tropicana present:-: This tells about Tropicana’s availability. 4) Real Facing:-It implies how many packs of juices are kept on the shelf of retailer. Company pays a price to retailer for good display. Good number of Real facing display implies good sale of Real at that shop. 5) Tropicana Facing: - For every 8 facings company gives a scheming of 4% to retailer after 3 months. Facings of Tropicana are compared with respect to Real to guesstimate sales with respect to each other. Also it tells about how big is the share of eyeball of customer with respect to Real 6) Real Stock: - Competitors judgment of stock. 7) Tropicana Stock:-Used with information of Real’s stock to know competitors status... 8) Tropicana PSR present: - This will tell that is P.S.R visiting newly opened shops in the region or not. It is a hypothesis that for every 250 people there is one shop, so with ever increasing population new shops open up in the reason. It is commonly noticed that P.S.R are reluctant to visit new shops and keep on sticking to the old route plan that they have. So this tells about the un –explored avenues for selling our product. 9) Gatorade Present:- Aim of PepsiCo is to make sure that where 1L Tropicana is present, there must be one mono carton of Gatorade present too .This is a classic example of cross-selling and it checks with how much efficiency their workforce is carrying out cross selling exercise. 10) Visual merchandising: Check if merchandising done properly or not. This tells the real picture about how merchandisers are doing their job. A good merchandising is vital for healthy sales, it act as a value add for Tropicana sales and become critically important as Tropicana is considered an impulse buy. 11) Estimated Consumption: By seeing Tropicana stock we have to judge their estimated weekly consumption, If stock is less than judgment then we can pursue retailer to purchase more stock 12) Issues/Comments: - any particular issues seen/observed, suggestions by retailer or any other issue noted by surveyor.43
  44. 44. Sales exercise:-Third phase of the exercise was to use the knowledge calculated from Phase 1 andPhase 2 of the project and get some hands on experience with Sales.Task allocated to me was to cover the traditional Trade of West Delhi that o notposes a good picture for Tropicana Division and the same fact is evident from thesurvey done on the same region.Products to be sold were Tropicana and Gatorade(R.T.D and powder)We were instructed to start from Distributor Point every day.This used to serve the following purpose. a) Give distributor the order received from market. b) Calculate samples of product, example mono cartons for Gatorade. c) To get acquainted with distributor activitiesPricing of Tropicana and GatoradePrice-Case Quantity-Casing Margin Price-Casing SchemingTropicana100% 1L,12 piece 15% 887.0 1 carton free with 1 case or 8-10%Tropicana 1L,12 piece 15% 782.5 1 carton free with 1Nectar case or 8-10%Tropicana 100% 200ml,30 piece 15% 573.9 1 case free with 5 caseTropicana 200ml,30 piece 15% 469.5 1 case free with 5 caseNectarGatorade R.T.D 500ml,24 bottle 10% 763.6 1case+2 bottle freeGatorade 35 g,24 mono carton 18% 1830.5 1case+1 MonocartonPowder (1 mono carton -6 free sachet)44
  45. 45. Sales Progress:-S. Name of Shop Address Contac Quantity- Quantity- Billing(Tro Billing(GatNo t Gatorade Tropicana picana) orade) Numbe r1 MaaDurga Store A- 987170 2 1 case-100% 800 152.52 22,MainNajabg 4070 Monocart arh on-(1 road,Uttamnag orange+1 ar lemon)2 Madan store Premnagar,ne 935009 9Monocar 0 0 686.34 arbikaneri 4275 ton-(3 sweet(landmar orange+6l k-metro pillar emon) number 682- 83)3 Maagaba trading wz-154,hastal 253735 1 0 0 76.26 corporation road,uttamnag 665 monocato ar n-orange4 virdi Shop No1,Shiv 921041 6 0 0 457.56 communication Nagar,Jail 1097 Monocart Road on-(3 orange+3 lemon) Nanu bakers , Park, Behind 928996 1 1case- 1252.02 76.265 Jail Road, 1947 Monocart 200ml+1 case- Petrol Pump, on orange 1L New Delhi6 Nirmal Medicos Sl-1/3,L- 931310 2 0 0 152.52 Block,hari 4016 Monocart Nagar on-(1 orange+1 lemon)7 Chaurasiya Pan el-6,sno1,L 1 0 0 76.26 Bhandar block,harinaga monocato r n-lemon8 Sindhi Sweet CA-19A,DDA 281242 6 Present NA 457.56 flats,Hari 58 Monocart Nagar on-(3 orange+3 lemon)45
  46. 46. 9 Mohan Medicos 104-ganesh 259916 1 0 0 139.88 medicos 44 Monocart on orange+2 rtd bottle(1 orange+1 lemon)10 Family bakery b-85,ganesh 259903 2 Present 0 152.52 nagar 05 Monocart on-(1 orange+1 lemon)11 The body gear c-5,ganesh 921222 2 0 0 247.95 nagar 3415 Monocart on-(1 orange+1 lemon)+3 rtd bottles46
  47. 47. Estimation ExerciseEstimation plays a very vital part in business development .This helps the uppermanagement to set the road map for future and also let them know how can they domore business. A good estimation give other employees in the department feedbackfor their future tasks .For example if Tropicana wants to increase its sales by 70%then it is result of some kind of estimation done earlier in business. Similarly a yearlytarget of Central Executive of selling Rs 10 Crore juice is result of some kind ofestimation that is done earlier by upper management.Tropicana department is following resource crunch. They are in dire need of skilledmanpower. So after doing market analysis across central Delhi next task was toestimate how many numbers of shops are present in regions covered in central Delhiwhere Tropicana and Gatorade can be sold.After calculating amount of employees needed we have to find the associated costwith them and then find out how much sales will they be able to generate. This datais then used by company for further recruitments.Following assumptions and facts were carried out while doing manpower estimate. a) PepsiCo follows the hypothesis that for every 250 person there is one shop to cater their needs. b) Population in Delhi is growing at the rate of 1.4% every year. c) Data of census-2001 was used and current population was calculated with the above growth rate. d) One P.S.R covers 180 shops in one week.47
  48. 48. Estimation ExerciseTable -Manpower EstimationArea Population Shop Shop Ratio=population/shop Shop PSR 2010 covered - covered - deficit required meJhandewalan 141928.50 20 14 7096.43 547.71 3.04Gole+Cp 525904.50 115 33 4573.08 1988.62 11.05Karol Bag 519930.37 170 30 3058.41 1909.72 10.61Sadar Bazar 86656.30 7 9 12379.47 339.63 1.89ChandniChowk 189583.59 17 25 11151.98 741.33 4.12Rajendar Nagar 265863.38 65 14 4090.21 998.45 5.55Patel Nagar 3947349.16 117 43 33738.03 15672.40 87.07PaharGanj 733325.45 125 15 5866.60 2808.30 15.60Total 64,10,541 636 183 25,006 138Understanding Fields -Manpower EstimationS.No Field name Logic1 Area Name of area under calculation2 Population Shows estimated population 20103 Shop Covered This shows how many shops are there in this region4 Shops Covered- Shops I covered me5 Ratio=population This ratio shows that one shop caters to need of how many /shop people. Ideal figure is 2506 Shop Deficit Tells how much unexplored shops are in this regionDeciphering-Man power EstimationAccording to our estimation, there should be 25006 more shops in the above statedareas that are still to be tapped in .Also we know one P.S.R covers 180 shops in oneweek so to cover 25006 shops we need 138 P.S.R.48
  49. 49. Sales Forecast Estimation from InstitutionsThis table shows immense potential in Institutions for Tropicana and GatoradeInstitutions Count Estimated Consumption 1 month Yearly ConsumptionEmbassy 58 20 case 1L100% Rs. 1,23,47,040.00Psu Joint Venture 55 60 cases 200ml 100%,5 case 1L Rs. 2,56,17,900.00Offices relating Sports 11 60 cases 200ml 100%,5 case 1L Rs. 51,23,580.00Tourism and 4 60 cases 200mL,2 case RTd,1 Rs.Hospitality case powder 16,63,664.00Sports Complex 16 25 Cases RTD,6 case powder,5 Rs. case 200ml 54,19,200.00Colleges Under Delhi 83 40 cases RTD,60 cases Rs.University 6,46,40,400.00Government 72 60 cases 200mL,5 case RTd,1 Rs.Establishments case powder 3,45,81,600.00BFSI 20 60 cases 200mL,5 case RTd,1 Rs. case powder 96,06,000.00Cooperatives 8 60 cases 200mL,5 case RTd,1 Rs. case powder 38,42,400.00Educational and 93 60 cases 200ml,15 cases Rs.Training RTD,2case powder 5,52,25,260.00Cultural 21 60 cases 200ml,15 cases Rs. RTD,2case powder 1,24,70,220.00Hospitals(2006) 140 50 cases 1l,50 case 200ml,4 case Rs. powder,5case RTD 14,14,23,240.0 0Hotels 72 60 cases 1L,10 cases 200ml,20 Rs. case RTD 4,59,82,080.00Private Engineering 85 60 case 200ml,5 case Gatorade Rs.Colleges(IP university) powder,case 10 RTD 5,21,83,200.00Gymnasiums 750 20 case RTD,5 cases powder Rs.49
  50. 50. 21,96,90,000.0 0Schools 4862 40 cases 200ml,5 cases RTD,5 Rs. cases Gatorade Powder 1,42,61,14,060. 80Total 6350 Rs. 2,11,59,29,844. 8050
  51. 51. Understanding Yearly Sales Forecast:-An institution is another dimension where lucrative business opportunity exists forPepsiCo. From institutions we mean school,colleges,gymnasiumsetc.These are theplaces from where organization gets huge volume and since FMCG is largely avolume based industry they play a very vital role for business growth. Tappinginstitutions is a major concern for Tropicana department and leaving any of theinstitutions means leaving lots of stones untouched and thereby not tasting a bigamount of business chunk.According to our estimate there is an estimate of 211 crore that can be generatedfrom these institutions wit in one year. A mammoth 67% of business comes fromschools, followed by 10% for gymnasiums and 7% from hospitals.School domination also helps company to form a stable customer base becausechildren who are drinking Tropicana since their childhood will keep on using theirservices as they grow up.51
  52. 52. Interpretation and AnalysisMarket under Scanner:-Karol Bag Karol Bag Tropicana Status No Juice Market Real Only Tropicana Only Both Present 13% 3% 54% 30% Gatorade Availability Status-KArol Shops Gatorade Bag Present 11% Shops Tropicana Present 89% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 30 4 9 1 3 1652
  53. 53. Karol Bag:-Deciphering Ground RealityKarol bag, being a shopper’s paradise attracting high footfall of 2000 people aminimum to say presents a huge opportunity to Tropicana and Gatorade. WithGaffer-Market nearby it also attracts a lot of customer.30% of Karol Bag has Tropicana Share, 3% is the share of Real whereas astaggering 54% is a non juice market that in itself is a hidden opportunity to increasebusiness of the Tropicana.Out of 16 shops where Tropicana is present ,Gatorade is present in only 3 shops,making it present in only 11% of shops leaving out huge chunk of 89% ofTropicana present shops. So there is a huge scope of improvement for Gatorade.In W.E.A Karol bag P.S.R comes to take order at six in the evening. Since, that is apeak season for retailers want P.S.R to come in morning. It should be noted thatDabur’sP.S.R arrives at 12 P.M in those shops. Tropicana and Gatorade arecompletely missing from 7 eating joints in Gaffar Market located just on the roadside.Overall looking at the big picture a great execution and sincere efforts of Centralexecutive make it strength for Tropicana.Conversion of 54% non juice market intojuice market succored by leadership of Tropicana presents Karol Bag as a placeofenormous opportunities to “mint money” .53
  54. 54. Market under Scanner-Gole Market, C.P, PaharGanj C.P,Paharganj,Gole Market-Tropicana status real only 6% no juice 21% trop only real+trop 46% 27% Shops Gatorade Cross Selling Status Gatorade Present 11% Shops Tropicana Present 89%Consolidated Data =>Gole Market, C.P, PaharGanj Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 33 7 15 2 3 954
  55. 55. GoleMarket, C.P ,PaharGanj:-Deciphering Ground RealityTropicana’s Share is 46% in GoleMarket,CP,Pahar-Ganj. ,6% is the share of Realwhereas 21%% is a non juice market that in itself is a hidden opportunity to increasebusiness of the Tropicana and at 27% shops both Real and Tropicana are present .Out of 33 shops where Tropicana is present, Gatorade is present in only 3 shops,making it present in only 11% of shops leaving out huge chunk of 89% ofTropicana present shops. So there is a huge scope of improvement for Gatorade.In ShaheedBhagat Singh market visual merchandising needs an overhauling .Inspite of being available across the entire width showcasing definitely needsimprovementAdding to it, Tropicana’s complete range of 100% is missing from A-class counters.Gatorade and Tropicana were found absent from the canteen of Lady Hardingmedical college.Overall looking at the big picture a great execution and sincere efforts of Centralexecutive make it strength for Tropicana that can further be strengthened.Conversion of 21% non juice market into juice market, presence of canteen ofprestigious Lady Harding College combined with great visual merchandisingsuccored by posh residence makes this region a ticking time bomb that is still toexplode.55
  56. 56. Market under Scanner-ChandniChowk Tropicana Status-Chandni Chowk trop only 0% real+trop real only 12% 8% no juice 80% Gatorade Cross Selling Status 0% Shops Tropicana Present Shops Gatorade Present 100% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 25 20 0 3 0 256
  57. 57. ChandaniChowk:-Deciphering Ground RealityChandniChowk presents a very sorry picture for Tropicana and Gatorade.Staggering 80% is a non juice market with 12% real domination. Width wise anddepth wise coverage of our product here lacks as Tropicana is found in only twoshops .Out of 25 shops P.S.R has visited only two shops which cut a sorry picture forTropicana and Gatorade.ChandniChowk forms heart of Old Delhi and attracts a lot of people including manyforeigners who visit daily with high brand awareness. There are many eating placeshere and Tropicana and Gatorade can be made parts of many stores around hereSo we can say Tropicana Division is keeping many stones untouched in this region.A positive point of view can convert this road block into successful businessavenue for Tropicana if execution is done correctly and up to the mark with strongmerchandising.57
  58. 58. Market Under Scanner-Jhandewalan Jhandewala-Status Tropicana Gatoraid Only 7% Tropicana Only 27% No Juice 53% Real Only 7% Real+Tropicana 6% Gatorade Cross Selling Status Shops Gatorade Present 17% Shops Tropicana Present 83% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 14 8 4 1 1 258
  59. 59. Jhandewalan:-Deciphering Ground RealityVideocon Bhawan is the landmark for Jhandewalan. Tropicana domination is 9%followed by real at 7%.Both products are simultaneously available with 7% shopsMammoth 57% is the no juice market. Gatorade only covers 17% of all availableshops for Tropicana leaving a massive 83% shops untouched. This area is specialas it attracts a lot of educated and aware population due to presence of theirworkplace at this locationCompared to real Tropicana poses as a winner but cross-selling of Gatorade needsbig needs improvement as only 17% of Tropicana present shops are covered byGatorade.Visual merchandising needs a resurrection. Gatorade presence is not felt anywherein display except one shop, similarly no danglers, shine boards, banners forTropicanawere present. Eating joints near cycle market and Videocon Bhawan are agood place to do some major business of Tropicana 200ml and Gatorade R.T.D.Merchandisers as well as salesman need to pull up their socks in this region toexplore its potential.59
  60. 60. Market under Scanner-Sadar Bazar SadarBazar -Tropicana Status Real Only No Real No Tropicana 22% 78% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 9 7 0 2 0 060
  61. 61. Sadar Bazar:-Deciphering Ground RealitySadarBazar on the footprints of Sadar Bazar presents a very sorry picture forTropicana and Gatorade. Tropicana is physically absents from all shops thoughthere are many locations where it can serve as hot cake.Survey also reveals that people are interested in buying Tropicana and Gatorade butNo representative of Tropicana division visits here.This place can also work as Great Avenue for selling juice in festival season. SadarBazar is very famous part of old Delhi and attracts lot of localities as well as touristswith high brand awareness. Every day it attract a huge footfall of not less than 7000.So we can say Tropicana Division is keeping many stones untouched in this SadarBazar.A positive point of view can convert this road block into successful business avenuefor Tropicana if execution is done correctly and up to the mark with strongmerchandisingSadar Bazar can reap benefits for the Tropicana division.61
  62. 62. Market under Scanner-South Patel Nagar Real South Patel Nagar-Tropicana +Tropicana 13% Tropicana Only No Real No 12% Tropicana 31% Real Only 44% Gatorade Cross Selling Status Shops Tropicana Shops Gatorade 25% 75% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 16 5 2 7 1 262
  63. 63. South Patel Nagar:-Deciphering Ground RealityScenario of Tropicana domination comes to a halt at South Patel Nagar.Real shareis huge 44% when compared to Tropicana’s meager share of 12%.No juice marketcomprises of healthy 31% with both products being present at 13% shops.Gatorade has acquired 25% shops and it still have to cover 75% of uncoveredTropicana stores. Also cross selling of Gatorade needed to be pushed.Visual merchandising is good here but can be made better .Out of 16 shops covered P.S.R has not visited12 shops clearly telling the reason ofTropicana lagging behind. With residential areas in the vicinity and common middleclass with increased spending power coming here, this area possess a very lucrativemarket with enormous potential for rise of Tropicana and Gatorade.63
  64. 64. Market under Scanner-East Patel Nagar and RajinderNagar East Patel Nagar, Rajinder Nagar-Tropicana Status No Juice market Real Only 4% 14% Both Present 53% Tropicana Only 29% Gatorade Cross-Selling Status Gatorade Present 23% Tropicana Present 77% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 28 1 8 4 7 1564
  65. 65. East Patel Nagar and Rajinder Nagar-Deciphering ground realityAbove avenue present a great avenue of business for Tropicana and Gatorade. Withaffluent and highly aware customer base living in the vicinity this market poses ahuge potential for Tropicana and Gatorade. Tropicana is leading the area with 29%exclusive availability with real having around 14% exclusive availability at the stores.Both are present at 53% shops and meager 4% no juice market..Just 4% of no juice market corroborates the statement that this place is a great placefor the Tropicana and Gatorade y.Gatorade needs to push itself more in terms of cross-selling as currently it iscovering only 23% of Tropicana available shops with 77% untouched.Visual merchandising is great at this place with two shop in shops also found.Retailers are facing issue of delay in supply of Gatorade R.T.D (ready to drink).Keeping retailers happy, filling the gaps in the supply and growing width wise is thekey to success in the above mentioned area.65
  66. 66. Market under Scanner-West Patel Nagar West Patel Nagar-Tropicana Status Real +Tropicana 22% No Juice Market Tropicana Only 50% 14% RealOnly 14% Gatorade Cross Selling Status Gatorade Present 17% Tropican Present 83% Shops No Juice Tropicana Gatorade Both Real Only Covered Market Only Present Present 14 7 2 2 1 366
  67. 67. West Patel Nagar-Deciphering ground realityIn West Patel Nagar market real’s is exclusively available in 14% shops and samestands true for Tropicana. Both of them are together present at 22% of shops. Astaggering 50% of market is no juice market.Gatorade id present in only 17% coverage area of Tropicana shops.With both competitors equally balanced one who will convert the 50% non juicemarket into juice market will emerge as the winner. These new outlets will also makeproduct visible across the entire market. West Patel Nagar market is a great exampleof traditional trade and successful execution with powerful merchandising over here lenable access to whole new customer base and new opportunity for their ever-growing business.67
  68. 68. Interpretation and analysis for SalesExerciseWe were able to sell 33 mono cartons of Gatorade, and 2 cases of Tropicana andopen 11 new accounts. 11 new sold 33 5 bottles 1 case 2 Cases accounts monocarton Gatorade Tropicana Tropicana 1L opened gatorade R.T.D 200ml Billing • Tropicana Amount • Rs.2052 Billing • Gatorade Amount • Rs267568
  69. 69. a) After visiting West Delhi brief was re instated that there are a lot of market gaps in execution of Tropicana and Gatorade. b) Visual merchandising needs to be resurrected in this region to have a higher share of eyeball of customer. c) Clients are not aware of Brand Gatorade and most of them don’t know that it is a quality product from PepsiCo Monthly Sales All Shops Rs.18896 Yearly Sale-11 shop Rs.226752(Rs 2.26 L) d) The body gear gym can do wonders for the sales of Gatorade and gives us an idea that Gyms are the perfect place to sell Gatorade and generate lot of cash for the firm. a. If one in one week we are able to sell 5 cases of R.T.D of Gatorade to Gym (not a huge amount for gym with footfall of more than 100 a day) and 5 mono cartons of Gatorade ensures a monthly sales of Rs 15268 and for mono carton amount is Rs 1520.So yearly sales come out to be Rs 2Lakh app.69
  70. 70. Competitor beverages MarginAnalysis:-Competitor margin analysis is very important from Tropicana’s division point of view.This enables them to keep a track on competition with latest findings..This exercise is very exhaustive as retailers are reluctant to tell the trading prices toanyone. Similarly it is a daunting task to find out distributors of all the competitors.Understanding Questionnaire-Competitor’s Margin:-S.No Field Underlying Reason1 Company Name of the company e.g. Parle Agro Name2 Product About product of company e.g. Frooti3 Pack Size Quantity of product –e.g. 200ml4 M.R.P Maximum Retail Price5 T.P(Trader Price at which trader receives the product Price)6 T.M(Trader Margin of trader in terms of percentage Margin)7 Distributor Price at which distributor receives the product Landing8 Distributor Margin of Distributor in terms of Percentage Margin9 Scheme Schemes offered with cases to traders/distributors e.g. 1 bottle free with one case/additional discount in terms of percentage70
  71. 71. Traders and Distributor MarginsCompany Catego Pack Size MRP TP TM Distributor DM SchemName ry Landing esPI Juices 200ml 22 19.1 15% 18.05 6.00% 5% 100% 3 200ml ROR 18 15.6 15.0 14.91 6.00% 5% 5 0% 1ltr 100% 85 73.9 15.0 69.73 6.00% 5% 1 0% 1ltr ROR 75 65.2 15.0 62.11 6.00% 5% 2 0%Company Category Pack MR TP TM Distribut DM SchemesName Size P or LandingParle Agro Frooti 200ml 10 8.60 14.00% 8.19 5.00% volume based 1.2l 45 41.0 8.89% 39.05 5.00% volume 0 based 600 ml 25 22.9 8.40% 21.81 5.00% 0 2l 70 63.0 10.00% 60.00 5.00% 0 1l 36 31.6 12.00% 30.17 5.00% 1 peti+1 8 pack 400ml 20 18.0 10.00% 17.14 5.00% 0 Appy fizz 1l 50 45.0 10.00% 42.86 8.00% 0Company Category Pack MRP TP TM Distributor DM SchemeName Size Landing sRasna Rasna 200g 35 32.5 10.00% 30.37 7.00% m 5gm 2 1.8 10.00% 1.68 7.00%71
  72. 72. Company Catego Pack MR TP TM Distributor DM SchemesName ry Size P LandingCoca cola CSD 300 ml 12 10. 12.50 10.09 4.00 24 + two 3ooml 5 % % bottles 500 ml 23 20 13.00 19.4 3.00 24 + 3 bottles of % % kinley 2L 60 54 11.00 51.9 4.00 9 + two 500 ml % % bottlesCompany Categ Pack Size MRP TP TM Distributor DM SchemesName ory LandingPepsi CSD 300 ml 12 11 8.30% 10.5 4.3 24 + 2India % 500 ml 23 21.7 5.40% 24+ 2 5 1L 32 29.7 7.00% 5 2L 60 56.6 5.60% 55.1 2.8 9 + 2 600ml bottles 0% MY CAN 15 13.2 12.00 24 + 2 CANS % NCD SLICE 25 23.6 5.60% 24 + 2 5OO ML SLICE 50 47 6.00% 12 + 1 1.25 L Nimbooz 15 13.7 8.60% 24 + 1 bottle of 350 ml Nimbooz& 1 Aquafina Nimbooz 50 47 6.00% 12 + 1 1.25 LCompany Category Pack Size MRP TP TMNameMOTHER Chaach 450 ml 10 9.5 5.00%DAIRY72
  73. 73. 0 sweet lassi 300 ml 12 11.508 4.10% salted lassi 200 ml 7 6.706 4.20% 0 Nutrifit litchi 100 ml 11 10.505 4.50% Nutrifit ROR 100 ml 10 9.5 5.00% 0 Full cream milk 1L 30 29.82 0.60% single toned 1L 23 22.816 0.80% milk Double toned 1L 20 19.8 1.00% milk Standard milk 1L 18 17.802 1.10%Company Name Category Pack M TP TM Distributor DM Schemes Size R Landing PPepsiCo Aquafina(min 1L 13 11.3 12. 3 bottles on eral water) 36 80 case %Camp Beverages refreshers 500 12 9.25 22 8.75 5.40 One bottlePvt. Ltd ml .91 % one case % 1L 30 27.5 8 200 9.09 One bottle % % one case 2L 50 48.3 3 43.3 10.3 One bottle % 0% one caseMcDowell Mineral 1L 12 5.6 53. 5 10.7 Water 00 0% %Royal Crown Cola RC cola 300m 12 9.33 22. 8.8 5.60International l 25 % % 600m 22 13.5 38. 12.29 9.20 l 4 40 %73
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