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8/3/2019 Productivity Improvement Programme
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Study of product promotion & strategies of
United Biscuits Pvt.Ltd
ByMohammad Waseem Asghar
PG10-40
Under the guidance of
Prof. Simmi Khurana
Integrated Academy of Management and Technology
Ghaziabad
Summer project submittedJuly, 2011
in
Partial Fulfilment of the Requirements for the Award of
Post Graduate Diploma in Management
(Recognized by AICTE, Ministry of HRD, Govt. of India)
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Objective
Primary Objective :
1. Identify the factors which are important for marketing strategies.
2. Customer awareness about United Biscuits.
3. Identify the areas of improvement of United Biscuits.
Secondary Objective :
1. Ensuring adequate availability of stocks at stores.
2. Coordinating with Sales officer & Distributor.
3. Promoting the product at store level.
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Introduction of United Biscuits Pvt. Ltd.
United Biscuits was founded in 1948 following the merger of two Scottish family businesses McVitie & Priceand MacFarlane Lang. McVities was founded in 1830 and 89% of UK households buy McVities biscuits. UnitedBiscuits Pvt. Ltd is the UKs leading biscuit manufacturer and No. 2 in snacks. Were the second largest biscuit
manufacturer in the Netherlands, France, Belgium and Ireland. Key Markets of United Biscuits are Canada,USA, Sweden, Greece, Italy, Portugal, Middle East, Australia, India and Nigeria. Key Brands of United Biscuits
are McVities, Fruit & Form, Carrs, Delacre and BN.
A US $ 2 billion branded snacks company.
Largest producer of biscuits in 1.5 billion tons UK market.
Employee strength of over 11,000 people.
Baking biscuits since 1850.
First Mc Vities original digestive baked in 1892.Selling products in over 100 countries.
United Biscuits in India
United Biscuits is worlds second largest biscuits manufacturer in the world, and has being importing in Indiasince last 11 years, taking their experience further in manufacturing best quality biscuits & providing value
product to the Indian consumers. United Biscuits purchased the plant of Bonn brad (S.S. foods) with theinvestment of 15-20 crores located at Kala Amb industrial area in Himachal. However in totality UB has alreadymade an investment of 40 crores for this plant and also planning to invest more. UB identified as a market
with great potential than it made for way into the Indian market by deciding the production in HimachalPardesh. UB India today directly and indirectly employees over 1000 people and also plans to continue
expanding its presence in the year 2011.
Manufacturing facility in Kala Amb- Himachal Prades.
UB India has been operational since the beginning of 2010.
Head Office at Vasantkunj Delhi.
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Promotional Strategies:
United biscuits knows that customers go to its stores to take a good quality of products at at its reasonable price
and not because United biscuits is the seconds largest biscuit manufacturer in the world. United biscuits uses
many kinds of promotions to keep its biscuits at the top of the industry. Promotion is one of the important
elements of marketing mix. The elements of promotion used by United Biscuits
Advertising:
United Biscuits has modernized their advertisements,pamphlets, and website to include nutritional informationand addressing diet restrictions but still United Biscuits has
had to look for alternative strategies to keep consumershappy.
Another promotional strategy United Biscuits uses is thehuge investment in sponsorship. This is also a central partof the image building process. Sponsorship in WWE
increases awareness of United Biscuits brand.
Below the line promotion are used in India through Salespromotion and personal selling but in order to fully exploit
advertisement now United Biscuitsand is starting Abovethe line promotion through mass media to make sure
everyone knows of the McVities brand.
United Biscuits has signed on Bollywood SuperstarBipasha Basu and leading South Indian actor Shriya Saranfor endorsing its flagship brand McVities in India. The stars
will play a pivotal role in enhancing further, the brandsaspirational values, through their association in presenting
the brand, products and promotional activities.
Sales Promotion:
A sales promotion strategy is an activity that is
designed to help boost the sales of a product or
service.
Sales promotion strategy used by United Biscuits is
a Combination of Push & Pull Strategies: It focuses
both on the distributor as well as the consumers,targeting both parties directly. It offers consumer
incentives side by side with dealer discounts.
Tools used United Biscuits for consumers
promotion:
1. Freebies 3. Sample
2. Coupon 4. Extra quantities
Tools used United Biscuits for retailers promotion:
1.Price off
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Competitors of United Biscuits in India:
The existing market leaders in the Indian biscuit market are -
1 Parle 2 - Britannia 3 ITCIt is found many products which can be compared with Britannia & Parle Biscuit. As a conclusion I found that
particularly in my provided area Mc Vities is not really doing well and its performance is on low level. During thefield work and after intensive study it was found that main competitor of Mc Vities biscuits is:
In Ghaziabad the demandof biscuits in the market are ranked as follows.
Britannia. 2. Parle. 3. ITC. 4. McVities.
Two Dimensional Perceptual Mapping:
High value proposition
Britannia
Parle
Mc Vities
ITC
High Price Competitive Price
Low Value Proposition
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Beat Planning
United Biscuits followed following strategies for the selection of Beat Planning.
1 Company divided a particular are in many Beat such as East Delhi has divided into 50 Beat approx.
2 Each Beat has 40 retailers approx.
3 Company focused those retailers who are good in FMCG business.
4 As per sales volume Beats are divided into category A, B and C.
5 As per sales volume retailers are also divided into category A, B and C.
6 Company mainly focuses A category retailers so that company can increase sales growth and revenue.
7 Company gives special sales promotion offer to A category retailers.
Mc Vities Stock availability & Re-order
Shelf Stores in Ghaziabad
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Research Methodology
Marketing Research: Q uantitative Research
Data:
Primary Data: Collected by field work
Secondary Data: Collected by books and internet
Research Approach: Survey method
Research Instrument: Q uestionnaire
Type of Questionnaire: Structured
Type of Questions: Close-ended and open-ended questions
Target Population: Retailers
Sample Size: 100
Sampling Technique: Convenience Sampling
Sample Areas:
Ghaziabad-
Kavi Nagar, Raj Nagar, Lohiya Nagar, Patel Nagar, Sastri nagar, Chiranjeev Vihar, Dasna Gate,
Gandhi Nagar, Nehru Nagar, Sihani Gate, Govind Puram.
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1. How did you get to know about Mc Vities biscuits?
Interpretation - Survey shows that 10% retailers know Mc Vities through News papers & 90%
retailers know it through any other sources like POPs, sales man & Customers.
News Papers &
Magazines
10%
T.V Commercials
9%
Outdoor Media
0%
Any Other
81%
McVities
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2/A. Rate the Packaging
Interpretation - For McVities packaging 23% retailers said that its average, 61% said good, 16 said
very good. For Britannia 30% said good and 60% said very good. For Parle 62% said good and 38%
said very good. Which vividly indicates that packaging of McVities is good & competent to
Britannia & Parle.
0 0 0 0
23
0 0
9
61
30
62
45
16
70
38
46
0 0 0 0
McVities Britannia Parle ITC
PackagingBad Average Good Very Good Excellent
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2/B. Rate the Price
Interpretation 64%, 57% & 44% Retailers said that Britannia, Parle & ITCs price rate are very
good respectively where as 35% retailers said the price of McVities are average. For this reason
McVities have to work on its price.
McVitie'sBritannia
ParleITC
00
00
35
00
0
65
3643
57
0
64
57
44
00
00
PriceBad Average Good Very Good Excellent
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2/C. Rate the Quality
Interpretation: 80% & 62% retailers said Britannia & Parle are very good respectively but only
38% said McVities are very good & 13% said average and so McVities have to improve the
quality of its biscuits to compete with Britannia & Parle.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
McVitie's Britannia Parle ITC
Quality
Excellent
Very Good
Good
Average
Bad
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2/D. Rate the Quantity
Interpretation: 64% retailers said Britannia provides very good quantity & 65% said Parle provides
very good quantity but 82% said that McVities provide good quantity whether 18% said that
McVities provide average quantity in the market.
0
20
40
60
80
100
120
McVitie's Britannia Parle ITC
Quantity
Bad Average Good Very Good Excellent
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3. Rank the following according to the customer preference?
Interpretation: McVities Digestive is ranked highest at 82% & McVities Chocolate Cream is ranked
lowest at 56%. It indicates that Digestive biscuits are highly preferred by the customers & has
good response of sales in the market.
82
42
6 6
1210
32
38
8
3
27
39
22
9
3
48
10
1821
0
11
17 16
56
McVities Digestive. McVities-Butter Cookies. McVities-Cashew Cookies. McVities-Marie. McVities-Chocolate Cream.
Customer Preference1 2 3 4 5
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4. Which brand is most demanded by customers?
Interpretation: In 100 sample shops one shop sales only McVities thats there are no
competition. Most Demanded biscuits are Britannia 37% followed by Parle 29% and ITC 21%. In
some shops demand of two biscuits are same such as Parle and Britannia
Mc Vities
13%
Parle29%
Britannia
37%
ITC
21%
Demand
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5. Special offers & trade schemes provided by McVities to retailers are
convincing?
Interpretation: 56% retailers said that offers & trade schemes provided by McVities are
convincing but only 35% retailers dislike McVities schemes.
0 10 20 30 40 50 60
YES
NO
MAYBE
Convince
Convince
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6. The process of distribution, proper supply to retailers & services are?
Interpretation: 9% said very good, 12% said better & 24% said good but 35% and 20% said bad &
not effective respectively.
Very Good, 9
Better, 12
Good, 24
Average, 35
Not Effective, 20
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7. How many times in a week sales man visit your store?
Interpretation: 26% said that sales man visit once in a week and 69% said twice but 5% said
thrice and sales man never visit any store more than thrice in a week.
0 10 20 30 40 50 60 70
1-time
2-times
3-times
More than 3-times
Visits
Visits
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8. Are you satisfied with the Distributer of McVities?
Interpretation: 42% retailers said they are satisfied with the distributer and 58% of them said
that they are not satisfied with distributer.
42%
58%
SatisfactionYes No
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9. In how many days you Re-Order McVities?
Interpretation: 63% said they order McVities Digestive in 10-29 days & 64% said they order
McVities Chocolate cream in more than 40 days, which shows that McVities Digestive have
good sales & demand in the market but chocolate cream lacks the demand in market.
0
20
40
60
80
100
120
Digestives Butter Cookies Cashew Cookies Marie Chocolate Cream
Re-Order
More than 40 Days
30-40 Days
10-29 Days
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10. Which type of Plannograame they provide McVities in the stores?
Interpretation: 52% retailers said they provide Super-2 shelves for McVities, 33% provide Hyper-3
shelves & 15% provide Daily single shelves to McVities.
0 10 20 30 40 50 60
Hyper/ 3 Shelves
Super/ 2 Shelves
Daily Single Shelves
Visibility
Visibility
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11. Which of the following promotional techniques McVities use?
Interpretation: promotional schemes that for McVities products are used in the market is Extra
quanties at 93%, price-off at 39%, Freebies at 87% & Coupons at 57%.
Coupons
21%
Price-off
14%
Freebies
31%
Extra Q uantities
34%
Scratch-Cards0%
Lucky-Draw0%
Promotional-Schemes
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12. Which section of the media shall be employed to promote this product?
Interpretation: 93% of retailers respond to Electronic media, 73% wants Trade show & sampling of
the products and 39% support Print media for promotion of McVities products.
0
10
20
30
40
50
60
70
80
90
100
Print Media Electronic Media Trade show & sampling
Media section
Media section
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13. How satisfied are you?
Interpretation: Retailers said that they are 29%, 16% & 19% only satisfied with the sales growth of
McVities this year, with sales growth compared to other competitive products & with productivity
of working relationship with McVities field organization this year respectively.
Satisfied, 19
Neutral, 54
Dissatisfied, 27
0
20
40
60
80
100
120
With the sales growth of McVities this year With sales growth of McVities compared with that
of your other major suppliers of competitive
products
With the productivity of your working relationship
with McVities field organization this year.
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14. Any suggestions for McVities?
o Cookies Biscuit quality of taste should improve.
o Packaging of Digestive should improve.
o Different variety of biscuit should be more.
o Proper advertisement is required.
o Package weight is lesser than other biscuits such as Parle and Britannia.
o Regularity of sales officers vist should increase.
o Before launching any new flavor of biscuit, sample should be distributed.
o Replacement and Sales Displays be on time.
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Findings
1 Ghaziabad is potential market for McVities biscuits.
2 In Ghaziabad Britannia is most demanded biscuits.
3 - Only 9% retailers are aware about McVities TV ads.
4 Digestive is most selling biscuits. In 80% retail stores digestive sale is more than
McVities other biscuits.
5 Sales Men cover 70% retail stores within 7 days.
6 McVities biscuits supply is good only at 45% retail store.
7 - 42% retailers are satisfied with the distributer.
8 30% retailers are not aware about McVities promotional offers.
9 McVities price is higher than other competitors.
10 Retailers need different size of package and varieties of biscuits also.
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Limitations
Area Survey is based on Ghaziabad Citys retailers.
Sample Size, I had only 100 sample size for the survey which is less for Ghaziabad City.
While collection of the data many retailers were unwilling to fill the questionnaire.
Lack of proper experience on the part of the researcher in conducting such studies in the past.
The time period for carrying out the research was short as a result of which many facts have
been left unexplored.
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Recommendations
Some places distributors not able to cover his particular area. That should be improved.
Small pack of Rs. 5/- also should be in the market.
Always collect the views of retailers. It gives psychological effect on the retailers about care ness
by manufacturing company.
Proper supply chain should be so that biscuits can be supply on time and reduce stock out
problem.
More focus A and B category of retailers rather than wasting time and money on C category
retailers.
Focus more on advertising and sales promotion.
Give proper training to sales men about the selling techniques.
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Bibliography
www.unitedbiscuits.com
www.mcvities.com
http://bakerybazar.blogspot.com/2011/04/united-biscuits-rope-in-movie-stars-as.html
http://bakerybazar.blogspot.com/2010/03/united-biscuits-mcvities-penguin-to.html
Product & Brand Management by Prof. U.C. Mathur
Product Promotion by John J. Burnett
Marketing Research by H.W. Boyd, Jr. R. Westfall and Stanley F. Stasch
Marketing Research by Naresh K. Malhotra
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Appendix
1. Questionnaire used for Customer Awareness of United Biscuits.
2. Questionnaire for Retailers.
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