parle produtcts pvt ltd

A SUMMER INTERNSHIP REPORT

ON

A COMPARATIVE STUDY ON FMCG DISTRIBUTION IN GUWAHATI

Submitted By:-

DAVID DAS

Roll No:-

384/14

In partial fulfillment of Summer Internship for the award of the degreeof

MBA

(Master of Business Administration)

Gauhati University

(2014-16)

Faculty Guide: Organizational Guide:

Mr. Samir Sarkar Mr. Rahul Sinha

Associate Professor Area Sales Manager,

Department of Business Administration, Parle Products Pvt. Ltd,

Gauhati University, Guwahati Guwahati

1

CERTIFICATE

Certified that the summer internship project report “A COMPARATIVE STUDY ON FMCG

DISTRIBUTION IN GUWAHATI” is the bonafide work of “David Das, Roll No 384/14,

3rd Semester MBA in Gauhati University, Guwahati carried out under my supervision during

June 2015 to July 2015.

Place: (Signature of the Supervisor)

Date:

2

CONTENTS Page No

Chapter 1: EXECUTIVE SUMMARY 5

Chapter 2: COMPANY PROFILE 7

Chapter 3: RESEARCH OBJECTIVE 14

Chapter 4: METHODOLOGY USED 16

Chapter 5: ANALYSIS OF DIFFERENT FMCG DISTRIBUTORS 19

Chapter 6: FINDINGS 43

Chapter 7: LIMITATIONS 45

Chapter 8: RECOMMENDATIONS 47

Chapter 9: SUMMARY 49

a) QUESTIONNAIRE 51

b) List of Respondents 53

c) SWOT Analysis 67

d) BIBLIOGRAPHY 69

3

ACKNOWLEDGEMENTThe feeling of gratefulness to any one’s help directly arises from the bottom of heart. A small

but an important and timely help can prove to be a milestone in one’s life. This report is

dedicated to all the people, whom I met, took guidance, talked, interviewed and learned

something from them.

On this occasion, I sincerely thank all of them while submitting this project report. I would

like to thank Mr. Rahul Sinha Sir, (Area Sales Manager, Parle) who has provided me the

necessary information and guidance for success of this project. I would like to thank Mr.

Samir Sarkar Sir (Faculty Guide), without whom this would have not been possible. I am

thankful to all of them for giving time to time and valuable guidance during the project period

and giving me the guidance in taking the curriculum decision and choosing, initiating and

getting on with the project. Also, a deep sense of gratitude from the apex of my heart to Dr.

Manoj Kumar Choudhury Sir, (HOD, Department of Business Administration, Gauhati

University), for his encouragement and knowledge imparted during the course of my study

and for the completion of the project. And last but not the least, I always have felt the

invisible help from the almighty. Without the blessings of the almighty, I could not have

succeeded.

DAVID DAS

4

CHAPTER 1

EXECUTIVE SUMMARY

5

Institutional Guide: Mr Samir Sarkar

Organizational Guide: Mr Rahul Sinha

Title of the project: To study about the FMCG distribution of various companies, its scopes

and challenges.

Organization: Parle Products Pvt. Ltd

Fatashil Main Road, Guwahati

Period: The duration of the internship was 2 months from June 2015 to July 2015.

Market Area Surveyed: Guwahati

Types of Research: Exploratory and Descriptive

Sampling Technique: Convenience Sampling

Sample Size: 56

Data Collection Methods: Primary and Secondary

Statistical Tools: Percentage Methods, Bar Diagrams

Research Tool: Questionnaire

6

CHAPTER: 2

COMPANY PROFILE

7

Emerging markets like India are different from developed markets. These markets are often

characterized by specific local needs, limited purchasing power and high price sensitivity. In

emerging economies, to make up for the absence of well-developed markets for labour and

capital, firms may have to create their own infrastructure. Specifically, unlike established

companies in developed markets, Indian companies are facing the challenge of structuring the

new product development processes in an environment of limited design skills and

experience. Few qualified vendors and inappropriate engineering resources. At the same time,

they are constrained by limited financial and human resources, a lack of a market orientation,

strong centralized control by business family heads, functional chimneys without deep

functional expertise, and pressures to change on numerous fronts all at once to cope with the

competitive environment (FMCG).

FMCG Sector in India

Fast Moving Consumer Goods (FMCG) can be defined as packed goods that are consumed or

sold at regular and small intervals. The prices of the FMCG are relatively less and profits

earned through such sales are more volume based. The organized FMCG retailing in India is

a new concept and is fast catching up in urban and semi-urban India. The FMCG Sector in

India has witnessed a range of recent developments. Tax deductions on various items, rise in

the penetration levels and per capita consumption are some of the major developments in

FMCG. The FMCG Sector in India is the fourth largest sector in the Indian economy. As per

the reports of the 2005-06 financial years, the market size of the sector was registered as USD

13.1 billion. The FMCG Sector in India involves a strict competition between the organized

and unorganized sectors of consumer durables. India offers an abundance of raw materials

(Some product categories such as jams, toothpaste, skin care products, hair care products, etc.

have experienced a low per capital consumption as per a report presented in 2006.), low-

priced labor costs, and also has a presence across the entire value chain.

Approximately 200 million people are expected to become the consumers of processed and

packaged foods by the year 2010.The major activities of the food-processing sector are

permitted 100% foreign equity or 100% NRI and Overseas Corporate Bodies (OCB)

investment to meet the rising demand of the consumers. In the year 2012 (Table.1), the recent

developments in FMCG, it is assumed that the consumption of the FMCG products will have

a satisfactorily growth with the rising income level of Indian populace in both the rural and

urban areas. The market size of the Indian FMCG Sector is expected to reach USD 33.4

billion by the year 2015. The Indian government has declared several tax sops for the FMCG

8

sector in India. It has emphasized on the infrastructural developments in the same. The

consumption of health and personal care products in FMCG sector has increased in the recent

past with rise in disposable income especially among the early stages group in India. A few

of the FMCG product are:

Toiletries

Soaps and detergents

Cleaning and disinfecting agents

Cosmetics

Non-durables

Pharmaceuticals

Further, the packaged food products and drinks are also sold under the FMCG, since these

items are consumed or bought at regular intervals. Furthermore, recently the electronic items

like mobile phones, MP3 players, external hard drives, etc., which has less life owing to its

technological development, has also been brought under the gamut of FMCG sector.

About Parle

Parle Products is an Indian private limited company. It owns the famous biscuit brand Parle-

G. As of 2012, it had a 35% dominant share of the Indian biscuit market. Parle Products has

been India’s largest manufacturer of biscuits and confectionery for almost 80 years. Makers

of the world’s largest selling biscuit, Parle-G, and a host of other very popular brands, the

Parle name symbolizes quality, nutrition and great taste. On an average 4551 Parle G biscuits

are consumed per second and an astonishing 1432 billion biscuits are produced per year.

With a 40% share of the total biscuit market and a 15% share of the total confectionary

market in India, Parle has grown to become a multi-million dollar company. Currently, Parle

Products has over 33, 00,000 distribution outlets.\

History

Parle Products Company was founded in 1929 in British India. It was owned by the Chauhan

family of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939. In 1947, when

India became independent, the company launched an ad campaign, showcasing its Gluco

biscuits as an Indian alternative to the British biscuits. The Parle brand became well known in

India following the success of products such as the Parle-G biscuits and the Thumbs Up soft

drink.

9

https://en.wikipedia.org/wiki/Parle-G


https://en.wikipedia.org/wiki/Private_company_limited_by_shares

The original Parle company was split into three separate companies, owned by the different

factions of the original Chauhan family:[3]

Parle Products, led by Vijay, Sharad and Raj Chauhan (owner of the brands Parle-G,

Melody, Mango Bite, Poppins, Kismi toffee bar, Monaco and KrackJack)

Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia

(owner of the brands such as Frooti and Appy)

Parle Bisleri, led by Ramesh Chauhan

All three companies continue to use the family trademark name "Parle". The original Parle

group was amicably segregated into three non-competing businesses. But a dispute over the

use of "Parle" brand arose, when Parle Agro diversified into the confectionary business, thus

becoming a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro

for using the brand Parle for competing confectionary products. Later, Parle Agro launched

its confectionery products under a new design which did not include the Parle brand name.[4]

In 2009, the Bombay High Court ruled that Parle Agro can sell its confectionery brands under

the brand name "Parle" or "Parle Confi" on condition that it clearly specifies that its products

belong to a separate company, which has no relationship with Parle Products.

Brands

Biscuits: Parle-G, KrackJack, Monaco, Kreams, Golden Arcs, Parle Marie, Milk Shakti,

Parle Hide & Seek Bourbon, Parle Hide & Seek Fab, Top, Parle Gold Star, Nimkin, Happy

Happy, Coconut, Jam-In, Parle Rusk, Milano Minis ,Kreams /Kreams Gold ,Milano , 20-2-

Cookies ,Golden Arcs , Top, Parle –G Gold , Happy Happy Creams, Simply Good

Sweet confectionery

Melody, Mango Bite, Orange Bite, Kaccha Mango Bite , Poppins, 2 in 1 Eclairs,

Mazelo, Kismi Toffee Bar, London Derry

Snacks

Monaco Smart Chips, Parle's Wafers, Full toss, Parle Namkeens.

Since they have been entered at the food competition of Monde Selection in 1971, the brands

have received consistently gold and silver Quality Awards at the World Quality Selections.

10

https://en.wikipedia.org/wiki/Awards

https://en.wikipedia.org/wiki/Monde_Selection

https://en.wikipedia.org/wiki/Food_competition


Quality

Hygiene is the precursor to every process at Parle. From husking the wheat and melting the

sugar to delivering the final products to supermarkets and store shelves nationwide, care is

taken at every step to ensure the best product of long-lasting freshness. Every batch of

biscuits, confectioneries & snacks are thoroughly checked by expert staff, using the most

modern equipment. This ensures consistent and perfect quality across the nation and abroad.

Concentrating on consumer tastes and preferences, the Parle brand has grown from strength

to strength ever since its inception. The factories at Bahadurgarh, Haryana and Neemrana,

Rajasthan are the largest biscuit and confectionery plants in the country. The factory in

Mumbai was the first to be set up, followed soon by the one in Bangalore, Karnataka. Parle

also has 10 manufacturing units for biscuits and 75 manufacturing units for confectioneries

on contract.

Core Values

An in-depth understanding of the Indian consumer psyche has helped Parle develop a

marketing philosophy that reflects the needs of the Indian masses. With products created

bearing in mind both health and taste, Parle products equally appeal to fun loving kids &

youth. Even today, the great tradition of taste and nutrition is consistent in every pack on the

store shelves. The value-for-money positioning allows people from all classes and age groups

to enjoy Parle products to the fullest.

Infrastructure

Apart from the original factory in Mumbai, Parle has manufacturing facilities at Neemrana

(Rajasthan), Bangalore (Karnataka), Kutch (Gujarat), Khopoli (Maharashtra) and

Bahadurgarh (Haryana). It also has several manufacturing units on contract.

Challenges

Parle Products has 9 factories, more than 100 contract factories and distributors and

approximately 45 Lakh retail outlets. The challenge was to have a holistic view of

transactions, one had to hop across several screens to make a sense out of it. To take a

decision Parle needed to compare the given brand across timeline which is normally 24

11

https://en.wikipedia.org/wiki/Bahadurgarh

https://en.wikipedia.org/wiki/Bangalore

https://en.wikipedia.org/wiki/Neemrana

months. It was a very time consuming process to fetch individual reports from ERP, also the

result was not very conclusive at most times.

Managing shortfalls at specific locations was another key challenge, as the goods had to be

manually shifted based on requirements, the process was time consuming and needed more

accuracy. This also created a strong need for opting a Business Intelligence solution.

Website:

www.parleproducts.com

Company Size: 10,001 + employees

Industry:

Food & Beverages

12

VISION

The main vision of parle is to concentrate on consumer taste and preferences, the parle brand

have grown from strength to strength ever since its inception. For fulfilling its vision they do

every batch of biscuits and confectionaries are thoroughly checked by expert staff using the

most modern equipment hence ensuring the same perfect quality across the nation and

abroad.

MISSION

For over 65 years, Parle has been a part of every Indian. From the snowcapped mountains in

the north to the sultry towns in the south, from frenetic cities to laid back villages, Parle has

nourished strengthened and delighted millions. Various people have various reasons to

consume it; some consume it for the value it offers while other consumes it for sheer taste.

For some it is a meal substitute, for others it is a taste healthy nourishing snack. Patronized by

millions for all these qualities, it is much more than just a biscuit brand. Wonder why it is the

world’s largest biscuit brand.

13

CHAPTER: 3

RESEARCH OBJECTIVE

14

To know about the distribution of the products of various FMCG companies

To understand the various issues related to the distribution process.

To determine the scopes and challenges faced by different distributors

15

CHAPTER: 4

METHODOLOGY

16

Data Collection

A sample size of 56 distributors of different fmcg companies was taken. The survey was

conducted in the area Guwahati Area

Data Sources

A quota sampling technique was adopted because the sample audience was made out of

potential purchasers of the product. The sample was carefully drafted. A lot of care was taken

when designing the questionnaire and also when collecting information

PRIMARY DATA

The primary data consists of information obtained from the distributors

SECONDARY DATA

The secondary data is obtained from the information already published in newspaper articles,

blogs and books. The websites like www.parleproducts.com, scribd.com, Wikipedia .com etc.

were also useful

METHODS OF DATA COLLECTION

The data collected is by the use of questionnaire and personal interview.

The source of the data collected for the research is both primary data and secondary data.

Primary Data

Observation Method

This data was collected by visiting the distributors of different FMCG companies in

Guwahati City.

The data was collected on the following parameters:

No of outlets and area covered in Guwahati City

No of delivery man and salesperson employed

Cost incurred by the distributor

Turnover of the distributor, wholesale and retail contribution

17

By Personal Interviews

The data was collected by visiting each and every fmcg distributors. The information was

taken by talking to the manager or proprietor of the distributors. The objective of this was to

know about how well the distribution is carried out in different part of the city.. The questions

were open ended as well as close – ended

Sample Size = 56 distributors (21 companies)

TYPE OF RESEARCH: Exploratory and Descriptive type

STATISTICAL TOOLS AND TECHNIQUES

The data collected has been analyzed and interpreted using statistical tools such as table,

percentage, various charts, and diagrams.

18

CHAPTER: 5

ANALYSIS OF DIFFERENT FMCG DISTRIBUTORS

19

PARLE

Turnover per month (approx.) per distributor:

Azara Rajgarh Macchkhowa Rehabari Average Turnover

10,00,000 15,00,000 12,00,000 20,00,000 1425000

Data Interpretation: From the above chart, it is seen that the average turnover of Parle

distributor is above Rs 14.2 lakhs.

Cost incurred per month (approx.)

Azara Rajgarh Macchkhowa Rehabari Total

Operating Cost 10,000 15,000 15,000 22000 62000

Manpower Cost 25,000 30,000 25,000 36000 116,000

Distribution Cost 15,000 10,000 15,000 10000 50000

Total Cost 50000 55000 55000 68000 228000

Average Cost = Rs (50000+55000+55000+68000)/4

=Rs.57000

Here, Operating cost is 27.19 % of the total cost.

Manpower cost is 50.8 % of the total cost

Distribution cost is 21.9 % of the total cost

NESTLE

Turnover per month (approx.) per distributor

Azara Fancy Bazar Ambari

Fatashil

Panbazar Bhetapara Kahilipara Average

Turnover

15lakhs 85 lakhs 75 lakhs 50 lakhs 20 lakhs 1.5 crore 6583333.3

Data Interpretation: The average turnover of nestle distributor is above Rs 65 lakhs

20


Azara Fancy

Bazar

Ambari

Fatashil

Panbazar Bhetapara Kahilipara Total

Operating

Cost

15,000 28,000 50000 40000 20000 25000 178000

Manpower

Cost

10,000 80,000 150000 30 lakhs 25000 223000 3488000

Distribution

Cost

10,000 18,000 40000 25000 15000 30000 138000

Total Cost 35000 126000 240000 3065000 60000 278000 3804000

Average Cost = Rs (35000+126000+240000+3065000+60000+278000)/6

= Rs 634000

Here Operating Cost is 4.67 % of the total cost

Manpower Cost is 91.69 % of the total cost

Distribution Cost is 3.62 % of the total cost

CADBURY’S


Azara Ganeshguri Average Turnover

700000 15 lakhs 1100000

Data Interpretation: The average turnover of cadbury’s distributor is Rs 1100000.


Azara Ganeshguri Total

Operating Cost 10,000 25000 35000

Manpower Cost 26,000 40000 66000

Distribution Cost 46,400 38000 84400

Total Cost 82400 103000 185400

21

Average Cost = Rs (82400+103000)/2

= Rs 92700




ITC


Maligaon Ganeshguri Fancy Bazar Average Turnover

10,00,000 3.5 crore 1 crore 50 lakhs 17000000

Data Interpretation: The average turnover of ITC is above Rs 1 crore.


Maligaon Ganeshguri Fancy Bazar Total

Operating Cost 50000 2.5 lakhs 2 lakhs 5,00,000

Manpower Cost 30000 4 lakhs 2.3 lakhs 660000

Distribution Cost 20000 80,000 Above 4 lakhs 500000

Total Cost 100000 730000 830000 1660000

Average Cost = Rs (100000 + 730000 + 830000)/3

= Rs 553333.3




22

BRITANNIA


Data Interpretation: The average turnover of Britannia is above 26 lakhs


Azara Ambari Fatashil Kahilipara Total

Operating Cost 10000 20000 35000 65000

Manpower Cost 38500 42000 40000 120500

Distribution

Cost

18500 20000 25000 63500

Total Cost 67000 82000 100000 249000

Average Cost = Rs (67000 + 82000 + 100000)/3

= Rs 83000




AMUL


VIP Bhetapara Sixmile Ambari Fatashil Fancy Bazar Average

Turnover

20,00,000 2500000 Above 2

crore

40,00,000 3 crore 14625000

Data Interpretation: The average turnover is above Rs 1 crore

23

Azara Ambari Fatashil Kahilipara Average

Turnover

26,00,000 44 lakhs 10 lakhs 2666666.6


Vip Bhetapar

a

Sixmile Ambari

Fatashil

Fancy

Bazar

Total

Operating Cost 20,000 25000 20000 20000 40000 125000

Manpower Cost 25,000 26000 200000 60000 65000 376000

Distribution Cost 10,000 15000 20000 35000 30000 110000

Total Cost 55000 66000 240000 115000 135000 611000

Average Cost= Rs (55000+66000+240000+115000+135000)/5

= Rs 122200




HINDUSTAN UNILEVER LIMITED


Data Interpretation: The average turnover of HUL is above Rs 3 crore.


Kahilipara Fancy Bazar Total

Operating Cost 2 lakhs 2.4 lakhs 440000

Manpower Cost 2.5 lakhs 2 lakhs 450000

Distribution Cost 70,000 87600 157600

Total Cost 520000 527600 1047600

Average Cost= Rs (520000+527600)/2

= Rs 523800

24

Kahilipara Fancy Bazar Average Turnover

3 crore 3.5 crore 32500000

Here Operating Cost is 42 % of the total cost



HORLICKS


Data Interpretation: The average turnover of Horlicks is above Rs 82.5 lakhs.


Lakhiminagar, Hatigaon Ambari Fatashil Total

Operating Cost 70,000 25000 95000

Manpower Cost 100000 70000 170000

Distribution Cost 40000 6000 46000

Total Cost 210000 101000 311000

Average Cost = Rs (210000 + 101000)/2

= Rs 155500




25

Lakhiminagar, Hatigaon Ambari Fatashil Average

Turnover

70 lakhs 95 Lakhs 8250000

BAJAJ CONSUMER PRODUCTS

Turnover per month (approx.)

Data Interpretation: The turnover of Bajaj Consumer Products is Rs 8.5 lakhs


Bhetapara Total

Operating Cost 15,000 15000

Manpower Cost 10,000 10000

Distribution Cost 10,000 10000

Total Cost 35000 35000

Average Cost = Rs 35000




LOREAL


26

Bhetapara

8.5 Lakhs

Bhetapara

1 Lakh

Data Interpretation: The Turnover of Loreal is Rs 1 Lakh


Bhetapara Total

Operating Cost 10000 10000

Manpower Cost 30000 30000

Distribution Cost 10000 10000



Here Operating Cost is 20% of the total cost

Manpower Cost is 60 % of the total cost

Distribution Cost is 20 % of the total cost

DABUR


Data Interpretation : The Turnover of Dabur is Rs 60 Lakhs


Lachit nagar Total




Total Cost 220000 220000


27

Lachitnagar

60 Lakhs


Manpower Cost is 50 % of the total cost


AGROTECH FOOD LTD


Data Interpretation: The turnover of Agrotech Food Ltd is Rs 12 Lakhs


Lachitnagar Total





Average Cost= Rs 43000




FRITOLAYS (PEPSICO INDIA LTD)



Lachitnagar Down Town, Dispur Total

28

Lachitnagar

12 Lakhs

Lachitnagar Down Town, Dispur Average Turnover

60 lakhs 21 lakhs 4050000

Operating Cost 14000 10000 24000

Manpower Cost 40000 21000 61000


Total Cost 60000 46000 106000

Average Cost = Rs (60000+ 46000)/2

= Rs 53000




HALDIRAM’S


Data Interpretation: The Turnover of Haldiram’s is Rs 1600000


Fancy Bazar ABC, Bhangagarh Ganeshguri Total

Operating Cost 14 lakhs 15 lakhs 10000 2910000

Manpower Cost 95000 76000 20000 191000

Distribution Cost 60000 80000 10000 150000

Total Cost 1555000 1656000 40000 3251000

Average Cost = Rs (1555000+1656000+40000)/3

= Rs 1083666.6

Here Operating Cost is 89.5 % of the Total Cost

29

Fancy Bazar ABC,Bhangagarh Ganeshguri Average Turnover

3.5 crore 7 lakhs 6 Lakhs 1600000

Manpower Cost is 5.87 % of the Total Cost

Distribution Cost is 4.61 % of the Total Cost

JOHNSON’S AND JOHNSON’S


Data Interpretation: The Turnover of Johnson’s and Johnson’s is Rs 625000


Lakhiminagar Ganeshguri Total

Operating Cost 80000 88000 168000

Manpower Cost 56000 50000 106000


Total Cost 174000 182000 356000

Average Cost= Rs (174000+ 182000)/2

= Rs 178000




NIVEA


30

Lakhiminagar Ganeshguri Average Turnover

6 lakhs 6.5 lakhs 625000

Ganeshguri Fancy Bazar Average Turnover


Data interpretation: The total turnover of Nivea is above Rs 17 lakhs


Ganeshguri Fancy Bazar Total


Manpower Cost 35000 20000 55000


Total Cost 78000 55000 133000

Average Cost = Rs (78000+ 55000)/2

= Rs 66500




KELLOG’S



Macchkhowa Total




Total Cost 122000 122000



31

Macchkhowa

6 lakhs



COLGATE PALMOLIVE INDIA LTD



Manipuri Basti Paltan Bazar Total


Manpower Cost 60000 40000 100000


Total Cost 110000 55000 165000

Average Cost= Rs (110000 + 55000)/2

= Rs 82500




BISKFARM



32

Manipuri Basti Paltan Bazar Average Turnover


Down Town, Dispur

25 lakhs

Down Town, Dispur Total






Here Operating Cost is 40 % of the Total Cost

Manpower Cost is 44 % of the Total Cost

Distribution Cost is 16 % of the Total Cost

PEPSI



Panjabari Total


Manpower Cost 2 lakhs 2,00,000


Total Cost 361000 361000




Distribution Cost is 21 % of the Total Cost

33

Panjabari

96 Crore

Analysis of Percentages of the Costs Involved:

Nestle Cadbury ITC Britannia Amu

l

HUL Horlick

s

Bajaj

C.

Prod

Biskfarm

Operating

Cost

27.9 4.67 18.8 30.1 26.1 20.4 42 30.5 42.8 40

Manpower

Cost

50.8 91.69 35.5 39.7 48.3 61.5 42.9 54.6 28.5 44

Distribution

Cost

21.9 3.62 45.5 45.5 25.5 18.0 15.043 14.7 28.5 16

Loreal Dabur Agrotech Fritolay Haldiram

’s

J&J Pepsi Nivea Kellog’s Colgate

Palmolive

Operating

Cost

20 27.2 23.2 22.6 89.5 47.19 23.5 33.8 32.7 24.2

Manpow.

Cost

60 50 69.7 57.5 5.87 29.77 55.4 41.3 40.9 60.6

Dist.

Cost

20 22.7 6.97 19.8 4.61 23.03 21 24.8 26.2 15.15

Data Interpretation:

Haldiram’s has the highest percentage of Operating Cost of 89.5 %

Nestle has the highest percentage of Manpower Cost of 91.69 %

Cadbury and ITC has the highest percentage of Dist. Cost of 45.5 %

Comparison of Percentage Values of Operating, Manpower, Distribution Costs

34

Nestle Cadbury ITC Britannia Amul HUL Horlicks Bajaj C. Prod

Biskfarm0

10

20

30

40

50

60

70

80

90

100

Loreal

Dabur

Agrotec

h

Fritolay

Haldira

m’s J&J

Pepsi

Nivea

Kellog’s

Colgate

Palmoliv

e0

102030405060708090

100

Operating CostManpower CostDist. Cost

35

TURNOVER OF VARIOUS DISTRIBUTORS (in Rs)

ParleNestle

Cadburys'ITC

BritanniaAmul

HULHorlicks

Bajaj Consumer ProductsLorealDabur

Agrotech Food LtdFritolays

Haldiram'sJohnson's and Johnson's

NiveaKellog's

Colgate Palmolive India Ltd

0

5000000

10000000

15000000

20000000

25000000

30000000

35000000

Sales

36

SalesParle 1425000Nestle 6583333.3Cadburys' 1100000ITC 17000000Britannia 2666666.6Amul 14625000HUL 32500000Horlicks 8250000Bajaj Consumer Products 850000Loreal 100000Dabur 6000000Agrotech Food Ltd 1200000Fritolays 4050000Haldiram's 1600000Johnson's and Johnson's 625000Nivea 1750000Kellog's 600000Colgate Palmolive India Ltd 3250000

Average Cost per Month of Various Distributors

PARLE

NESTLE

CADBURY'S ITC

BRITANNIA

AMULHUL

HORLICKS

BAJAJ CONSU

MER PRODUCTS

GARNIER

DABUR

AGROTECH FO

OD

FRITO

LAYS

HALDIRAM'S

JOHNSO

NS AND JO

HNSONS

NIVEA

KELLOGS

COLGATE

PALMOLIV

E INDIA LT

D

BISKFA

RMPEP

SI0

200000

400000

600000

800000

1000000

1200000

Average Cost

From the histogram it is seen that HUL has the highest turnover among all the fmcg

companies, followed by ITC and Amul.

Delivery man Employed

Parle

Biskfar

mNest

lePep

si

Haldira

m'sAmul

Britan

niaNive

a

Fritolay

s

Cadbury ITC HUL

Horlicks

Bajaj C

onsumer Pro

ducts

Garnier

Dabur

Agrotec

h Food

Colgate

Palmoliv

e0

102030405060708090

Data Interpretation: Pepsi has the highest number of delivery man employed with 78 in number, followed by HUL with 61 delivery men.

37

No of Delivery ManParle 8Biskfarm 2Nestle 41Pepsi 78Haldiram's 7Amul 41Britannia 13Nivea 4Fritolays 7Cadbury 3ITC 38HUL 61Horlicks 12Bajaj Consumer Products 6Loreal 3Dabur 6Agrotech Food 2Colgate Palmolive 6

N o o f S a l e s P e r s o n s

Parle

Nestle

Haldiram's

Britannia

Fritolays

ITC

Horlicks

Loreal

Agrotech Foods

0 10 20 30 40 50 60 70 80 90 100

No of sales person

No of sales person

Data Interpretation: ITC has the highest number of sales person employed with 87, followed by Pepsi with 46.

38

How long has the distributor been associated with the company?

Total distributors: 56

0-5YRS 35

6-10 YRS 9

11-30 YRS 11

MORE THAN 30 YRS 1

Does the distributor use Company’s MIS Software?

T o t a l D i s t r i b u t o r : 5 6

YES 37

39

No of sales person

Parle 15Biskfarm 2Nestle 24Pepsi 46Haldiram's 14Amul 17Britannia 21Nivea 1Fritolays 3Cadbury's 3ITC 87HUL 23Horlicks 11Bajaj Consumer Products 7Loreal 3Dabur 5Agrotech Foods 3Kellog's 4

NO 19

Wholesale Contribution

COMPANY AVERAGE W/S CONTRIBUTIONPARLE 36.6%BISK FARM 50%NESTLE 39%PEPSI NILHALDIRAM’S 60%AMUL 35%BRITANNIA 32%NIVEA 70%FRITOLAYS 67.5%COLGATE PALMOLIVE 30%HORLICKS 40%

KELLOGG’S 65%CADBURY’S 65%ITC 30%HUL 20%BAJAJ CONSUMER PRODUCTS 30%LOREAL 10%DABUR 35%AGROTECH FOODS 35%

R e t a i l C o n t r i b u t i o n

AVERAGE RETAIL CONTRIBUTIONPARLE 63.3%BISK FARM 50%NESTLE 61%PEPSI 100%HALDIRAM’S 40%AMUL 65%BRITANNIA 68%NIVEA 30%FRITOLAYS 32.5%COLGATE PALMOLIVE 70%HORLICKS 60%KELLOGG’S 35%CADBURY’S 35%ITC 70%HUL 80%

40

BAJAJ CONSUMER PRODUCTS 70%GARNIER 90%DABUR 65%AGROTECH FOODS 65%

O u t l e t s

PARLE 582BISKFARM 200NESTLE 3287PEPSI 5000HALDIRAM 130AMUL 1332BRITANNIA 1530NIVEA 38FRITOLAYS 500COLGATE PALMOLIVE 1321HORLICKS 2350KELLOG’S 30CADBURY’S 200ITC 4400HUL 2300BAJAJ CONSUMER PRODUCTS 800LOREAL 200DABUR 675AGROTECH FOODS LTD 500

Company Distribution Diagram

41

NestleParle

Dabur

Haldiram’sJohnsons and Johnsons

Nivea Kellog’s

42

Companies

Cadbury’s

Loreal

ITC

Bajaj Consumer Products

Horlicks

Britannia

HUL Amul

Agrotech Foods Pvt Ltd.

Fritolays

Pepsi

Biskfarm

Colgate Palmolive Pvt Ltd.

CHAPTER-6

FINDINGS

HUL has the highest turnover (32500000) in Guwahati city compared to all other

FMCG distributors while Parle turnover is Rs 1425000

Haldiram’s has the highest percentage of Operating Cost of 89.5 %

Nestle has the highest percentage of Manpower Cost of 91.69 %

Cadbury and ITC has the highest percentage of Dist. Cost of 45.5 % but ,

43

Parle: Operating cost is 27.19 % of the total cost.

Manpower cost is 50.8 % of the total cost

Distribution cost is 21.9 % of the total cost

Pepsi has the highest number of delivery person employed (78) as compared to Parle

(8)

ITC has the highest number of sales person employed (87) as compared with parle

(15)

Highest wholesale contribution is Nivea (70 %) as compared to Parle (36.6 %)

Pepsi has highest retail contribution (100 %) as compared to Parle (63.3 %)

Pepsi covers highest number of outlets (5000) as compared to Parle (582)

44

CHAPTER: 7

LIMITATIONS

The data collection has been confined only to Guwahati City. So the data cannot be

taken as general truth.

Distributors were least interested to answer during business time.

45

CHAPTER: 8

RECOMMENDATIONS

Parle should increase its no of distributors, especially in eastern part of the city i.e

Ganeshguri side where the situation is worst beyond imagination.

The present distributors should provide the products on time to the retailers. Complaints

regarding delivering of unordered products and also receiving less no of products as

compared to the quantity ordered are being heard. So, this should be taken care of.

47

Company policy of parle regarding distribution margin, damage policy is not great as

compared to other companies. So, this is an important point to be taken care of in order to

retain customers.

Companies like ITC are doing good inspite of having just 3 distributors namely: Ganeshguri,

Maligaon, and Fancy Bazar. They supply products on time, proper qty and the area each of

them covers is large. So Parle should follow the technique of permitting the distributors to

increase its area and its outlets.

Challenges faced by FMCG distributors

- Manpower problem

- Inventory Management

- High Expenses (Transportation)

- Reducing supply chain costs by reducing intermediaries

48

CHAPTER: 9

SUMMARY

I have studied and analyzed the FMCG distribution of parle products and also compared it with the

distribution of other FMCG companies on different aspects of the markets, outlets, distribution and consumers.

The 2 months of summer internship with parle actually helped me to learn various things that would

really be helpful in my life for future growth. This project shows me the way to work in the

market .How to communicate with different type of people .How to convince one for better job .Learnt how to

sell, how things work in Fast moving Consumer goods .having perishable nature of these product one need a

49

excellent distribution network and carefully select market because these product if transferred to far

area then cost attached to the product will make it un competitive. According to me the growth of

any product whether it could be food based product or anything depends upon how we do proper

branding of that product and also the promotion which plays a very vital role in attracting

customers. The main goal should be to attract customer and to retain them so that the loyalty maintains in

future as well. Besides this quality is the dominating aspect which influences consumer to purchase Parle

product, but prompt availability of other brands and aggressive promotional activities by

others influences the consumer towards them and also leads to increase sales. Ultimately I must

say that I am privileged to work in the company like Parle and get such a real time exposure of FMCG

company

QUESTIONNAIRE FOR THE DISTRIBUTOR Name of the Proprietor: ..............................................................

Company-----------------------------------------------------------------

Distributor………………………………………………………

50

Address: .........................................................................................

Contact No. : .........................

1. How many salespersons are employed in this distributor chain for the company?

0 to 5 6-10 more than 10

2. How long have you been associated with this company?

0 to 5 yrs. 6 to 10 yrs. 10 to 20 yrs. More than 30 yrs.

3. Are you satisfied with the facilities provided by the company?

Yes No

4. How many delivery man are employed for this distributor chain?

0 to 5 6 to 10 more than 10

5. What are the costs involved with the company per month?

Operating Cost_____________

Manpower Cost ______________

Distribution Cost_______________

6. Does the company give any subsidies?

Yes No

7. If yes, what kind of subsidies do you avail by the company?

____________________________________________

8. What is the damage policy does the company use for its product?

Weekly Twice in a month between 3 to 5 months

More than 6 months

9. What claim settlement policy does the company use?

_________________________________________

10. Are you using any MIS Software of the company? If yes, mention the name.

Yes No ____________________________________

51

11. What is the turnover of your distributor?

___________________________________________________

12. What is the total wholesale contribution?

0-20% 21-40% 41-60% above 60%

13. What is the total retail contribution?

0-20% 21-40% 41-60% above 60%

14. How many outlets are under your coverage for the company?

0-100 101-300 301-500 above 500

15. What is the average distributor margin of the company?

1-2% 3-4% above 4%

16. How much the average retail margin does the retailer seeks from the company?

1-2% 3-4% 5-6% above 6%

17. Specify the area you cover in Guwahati?

_________________________________________

18. Do you have any suggestions regarding the company’s service?

__________________________________________

INFO. ABOUT DISTRIBUTORS VISITEDArea: GAUHATI UNIVERSITY TO LGBI AIRPORT

1. Name of the Proprietor: Nabajit Kalita

Area: Kahikuchi, Azara, Ghy -17

Company: CADBURY

Distributor Name: Jeet Enterprise

52

Contact No: Not Available

2. Name of the Proprietor: Nabajit Kalita

Area: Kahikuchi, Azara, Ghy -17

Company: GODREJ CONSUMER PRODUCTS

Distributor Name: Jeet Enterprise


3. Name of the Proprietor: Rajiv Sarma Baruah

Area: Kahikuchi Shankar Path, Azara, Ghy -17

Company: PARLE

Distributor Name: Ascent Enterprise

Contact No: 9707588004

4. Name of the Proprietor: Anup Sarma

Area: Kahikuchi Shankar Path, Azara, Ghy -17

Company: BRITANNIA

Distributor Name: Anup Enterprise ,


5. Name of the Proprietor: Dipankar Kashyap

Area: SOS Road, Azara, Guwahati

Company: AMUL

Distributor Name: Abhidip Enterprise


53

6. Name of the Proprietor: Adbhut Kumar Tiwari

Area: Kalitapara, Azara, Guwahati.

Company: NESTLE

Distributor Name: Tiwari Enterprise


Area: MALIGAON

7. Name of the Proprietor: GOPAL CHOUDHURY

Area: Maligaon, Gate No 1, beside Pragjyoti Cinema Hall

Company: ITC

Distributor Name: Shree Krishna Distributor


8. Name of the Proprietor: BAPAN DAS

Area: Kamakhya Colony, Pandu Bara Bazar, Guwahati

Company: ANNAPURNA

Distributor Name: Sanny Enterprise,


Area: GANESHGURI

9. Name of the Proprietor: PAWAN AGARWAL

Area: Ganeshguri Kachari Basti, Dispur College Road, GMC Road

Company: ITC

Distributor Name: OM Distributor


54

10. Name of the Proprietor: BARUN SHARMA

Area: Ganeshguri, Hengrabari

Company: HALDIRAM’S

Distributor Name: Rajdhani Enterprise


11. Name of the Proprietor: JAYANTA KUMAR MAHANTA

Area: Ganeshguri, R.G Baruah Road (Near Punjab National Bank)

Company: JOHNSON’S AND JOHNSON’S

Distributor Name: M/S Swagat Enterprise




Company: KELLOG’S

Distributor Name: M/S Swagat Enterprise,




Company: CADBURY



55



Company: NIVEA





Company: EMAMI





Company: MARICO





Company: S C JOHNSON



56



Company: LEONARDO





Company: DHARA



Area: KAHILIPARA, JATIA

20. Name of the Proprietor: LAXMI DEVI KUMAR PRAJAPAT

Area: Navarun Path, Jatia, Kahilipara.

Company: HINDUSTAN UNILEVER LIMITED

Distributor Name: Eastern Enterprise


21. Name of the Proprietor: LAXMI DEVI KUMAR PRAJAPAT

Area: Lakhiminagar, Hatigaon, Ghy-38

Company: HORLICKS

Distributor Name: Eastern Agency


57

22. Name of the Proprietor: VIMLESH KUMAR

Area: Jatia, Kahilipara, Mandakini Path, House No-260

Company: NESTLE INDIA LTD

Distributor Name: M/S DHA Associates

Contact No: 0361 2385699

23. Name of the Proprietor: VIMLESH KUMAR

Area: Jatia, Kahilipara.

Company: BRITANNIA

Distributor Name: M/S DHA Associates


Area: HATIGAON, BHETAPARA

24. Name of the Proprietor: DILIP BARMAN

Area: H/No – 30, Bhetapara, Ghy

Company: AMUL

Distributor Name: PD Enterprise


25. Name of the Proprietor: DILIP BARMAN

Area: H/No – 30, Bhetapara, Ghy

Company: BRITANNIA

Distributor Name: PD Enterprise


58

26. Name of the Proprietor: LACHIT HAZARIKA

Area: Vishnu Rabha Path, Near Bridge, Opposite Shiv Mandir, Bhetapara,Ghy

Company: BAJAJ CORPORATION LTD

Distributor Name: Joymoti Agency


27. Name of the Proprietor: LACHIT HAZARIKA

Area: Vishnu Rabha Path, Near Bridge, Opposite Shiv Mandir, Bhetapara,Ghy

Company: EMAMI

Distributor Name: Joymoti Agency


28. Name of the Proprietor: B. KALITA

Area: Bhetapara, Maharishi Vidya Mandir Barsajai Path

Company: GARNIER

Distributor Name: NK Enterprise


Area: PANJABARI, SIX MILE, DOWNTOWN

29. Name of the Proprietor: KANGKAN SAHARIA

Area: Six Mile (Near Overbridge)

Company: AMUL

Distributor Name: Brahniman Sales

59


30. Name of the Proprietor: RAVI KANT JAIPURIA

Area: Panjabari

Company: PEPSI (Varun Beverages Ltd.)

Distributor Name: Sellwell Foods and Beverages Pvt. Ltd.

Contact No: 0361 2338383

31. Name of the Proprietor: RUPAM MAHANTA

Area: House No-13, Bhaskar Jyoti Path, Mathura Nagar, Dispur, Ghy 06

Company: BISKFARM

Distributor Name: Mahabahu Traders


32. Name of the Proprietor: RUPAM MAHANTA

Area: House No-13, Bhaskar Jyoti Path, Mathura Nagar, Dispur, Ghy 06

Company: PEPSICO INDIA LTD (FRITOLAYS)

Distributor Name: Mahabahu Traders


Area: LACHIT NAGAR, BHANGAGARH, ULUBARI

33. Name of the Proprietor: Biswajit Barman

Area: D Neog Path House, No-6, ABC, Bhangagarh


Distributor Name: N B Trade and Agency

60


34. Name of the Proprietor: DWIJEN KR. DAS

Area: Lachit Nagar, Ghy

Company: DABUR

Distributor Name: Mahalaya Marketing




Company: AGROTECH FOODS LTD.

Distributor Name: Mahalaya Marketing




Company: PEPSICO INDIA LTD (FRITOLAYS)

Distributor Name: Mahalaya Marketing , Contact No: 9954050540

Area: FANCY BAZAR

37. Name of the Proprietor: SUNIL PAREEK

Area: Bargola Market, M S Road , Fancy Bazar, Ghy

Company: NIVEA INDIA PVT LTD.

Distributor Name: Amit Agency (RC & Sons)


61


Area: Bargola Market, M S Road , Fancy Bazar, Ghy

Company: COLGATE




Area: Bargola Market, M S Road, Fancy Bazar, Ghy

Company: PALMOLIVE





Company: SC JOHNSONS





Company: LOREAL INDIA LTD.



62

42. Name of the Proprietor: N M GHORAWAT

Area: 32 TR Phookan

Company: AMUL

Distributor Name: Milapchand Hiralal and Sons


43. Name of the Proprietor: PAWAN KR. AGARWAL

Area: Fancy Bazar

Company: ITC

Distributor Name: Mahadevlal Hariram Pvt. Ltd.


44. Name of the Proprietor: ANKUR JAIN

Area: Fancy Bazar, 16, Kyal Market, T R Phookan Road

Company: NESTLE

Distributor Name: Shubh Pragya Marketing


45. Name of the Proprietor: ANKUR JAIN

Area: Fancy Bazar, 16, Kyal Market,T R Phookan Road


Distributor Name: ABM Associates


Area: PANBAZAR

63

46. Name of the Proprietor: SANTANU DASGUPTA

Area: S.C Goswami Road, Panbazar, Ghy-01

Company: AMUL

Distributor Name: Lucky Distributor’s


Area: PALTANBAZAR

47. Name of the Proprietor: A BUDDHAJIT SINGH

Area: Manipuri Basti KC Patowary Road

Company: COLGATE PALMOLIVE INDIA LTD

Distributor Name: M/S A Buddhajit Singh


48. Name of the Proprietor: GAUTAM DAS

Area: Paltanbazar

Company: COLGATE PALMOLIVE INDIA LTD

Distributor Name: PD Agencies

Contact No: 03612739718

Area: KUMARPARA, FATASHIL AMBARI, DHIRENPARA

49. Name of the Proprietor: RAJENDRA PRASAD GUPTA

Area: A.K Deb Road, Ambari Fatashil, Dhirenpara

Company: NESTLE

Distributor Name: Galaxy Scales and systems pvt. ltd

64


50. Name of the Proprietor: ASHOK KUMAR JAIN

Area: Fatashil Ambari, Near Coal Depot

Company: HORLICKS

Distributor Name: Anjana Distributors

Contact No: 0361-2491927

51. Name of the Proprietor: KAPIL SHARMA

Area: Fatashil Ambari, Nizraban Path, A.K Deb Road, Ghy-25

Company: BRITANNIA

Distributor Name: Ramdeo Associates

Contact No: 0361 2492212

52. Name of the Proprietor: BIKASH BAJAJ

Area: Fatashil

Company: AMUL

Distributor Name: Prime Asia Logistic, Contact No: 9085315952

52. Name of the Proprietor: MANISH KR. BAIRASIA

Area: Rehabari, Ghy

Company: PARLE

Distributor Name: S.C Business Combine


53. Name of the Proprietor: POONAM KR. TANEJA

65

Area: H B Road, Macchkhowa, Ghy-781009

Company: PARLE

Distributor Name: Taneja and Co.

Contact No: 0361 -2544669


Area: H B Road, Macchkhowa,Ghy-781009

Company: DHARA


Contact No: 0361 -2544669



Company: KELLOG’S


Contact No: 0361 -2544669



Company: PARLE


Contact No: 0361 -2544669

SWOT ANALYSIS

66

STRENGHTH

STRENGTH:- Brand Loyalty for brands like Parle-G, Monaco, 20-20 etc.

Presence of a large number of retailer outlets for the distributor.

There is no area wise biasness among the distributors.

Products are cheaper as compared to other companies, so the consumers generally prefer all

those.

WEAKNESS:

Lack of proper distributor in prime city centers like Ganeshguri, Chandmari, Six Mile and

Khanapara.

Irregular distributor service.

Worst damage policies as compared to other brands.

Irregular receive of products from CNF to the distributors, which results in improper

distribution to the retailers.

Rapid change of distributors results in heavy loss incurred by the retailers.

67

SWOT

OPPORTUNITY

THREATS

WEAKNES SS

OPPORTUNITIES:

Scope for area wise market capture by different distributors.

Improving the schemes, periodic product delivery and damage policies may result in

reaffirming the faith among the distributors.

THREATS:Loss of consumers and retailers due to persistent problems, and affirming other brands like

Britannia, ITC rather than PARLE.

Decrease market share

BIBLIOGRAPHY

Kothari , C.R, (2009), “Research Methodology, Methods and Technique ,” Second

Revised Edition, New Age International Publishers, New Delhi.

www.parleproducts.com

68

http://www.parleproducts.com/

https://en.wikipedia.org/wiki/Parle_Products

www.wikipedia.com

www.slideshare.net

Marketing Management by Philip Kotler

https://www.scribd.com

www.salesandmarketing.com

www.freebookcentre.net

69

http://www.freebookcentre.net/

http://www.salesandmarketing.com/

https://www.scribd.com/

http://www.slideshare.net/

http://www.wikipedia.com/

https://en.wikipedia.org/wiki/Parle_Products