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1、AGRO BASED FMCG PRODUCTS 2 Chapter 1 Executive summary The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well- established distribution network, intense competition between
2、 the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetra
3、tion level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of b
4、randed products to convert consumers to branded products. Growth is also likely to come from consumer upgrading in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing
5、industry Objective The dissertation has been done to study in detail, a very high prospective part of FMCG products known as agro products. The project covers market analysis of major players of this industry in the following category of agro products 1. Milk and milk products, 2. Biscuits, 3. Jam,
6、ketchups and pickles. Market analysis of major player of that particular category is taken as the base for identifying or deciding of feasibility of entrance in that particular sector. The project provides insight to a domestic player or small investor about the scope of entrance in agro based indus
7、try in India through the recommendation and 3 conclusions. Based upon the study and data collected through primary data collection method Project aims to study on following aspects 1 Detail analysis and Competitive Study of major agro based FMCG players in a particular product category 2 Measurement
8、 of Brand awareness and brand perception 3 Distribution network and channelization Study 4 Market share of players in product category and market forecasting 5 Consumer Perception and distributor Survey 6 Scope determination and identifying prospective category for investments 7 Development of busin
9、ess plan for feasible product category. The study has been carried out in following steps: Step 1: Analyzed agro industry and what are the market share and coverage by major players in different category Step 2: It is required to find out the factors affecting buying decisions of distributors and cu
10、stomers directly or indirectly. Step 3: It is required to approach customer and dealers and understand there expectations from the company and product Step 4: It required the Researcher to identify the areas which category entrance is very likely to be possible on the basis of the dealers and consum
11、ers responses and perception. Step 5: Using quantitative and qualitative analysis. 4 Chapter 2 RESEARCH METHODOLOGY DEFINITION Detail study about the major players in a particular product category, other study and researches related to Indian FMCG industry agro based. Sources of secondary data The s
12、econdary data was collected from research journals, Company websites and visit to competitors and collecting informative booklets. DEVELOPED THE RESEARCH FRAME: This includes deciding upon various aspects for the project on which the entire research is based. The research frame included based on dif
13、ferent category: 2.5 Scaling Techniques Two kinds of scaling techniques were used in the questionnaire: Ranking Scale Consumers make relative judgment against other similar objects (Comparative Scales) They were present with several factors influencing decision making while buying a laptop. 10 Deale
14、rs were present with several factors influencing customer decision making of purchasing a laptop. Likert Scaling Respondents were presented with five response categories ranging from strongly agree to strongly disagree and asked to respondent according to their experience. Analysis technique Regress
15、ion analysis for market share and sales is used in category 1 Screen plotting for analyzing market penetration in category 1 Construct & Model/Theory in category 1 Random sampling and simple mean method in category 2 and 3 Questionnaire Design and pre testing Keeping in mind the information required
16、 for achieving the objectives of the research, questionnaire was developed and Pre tested on a small sample of 50 respondents chosen on a convenience basis .The questionnaire was a blend of following type of questions:- Questions generating classification and identification information (Name, Sex, A
17、ge group, Profession, income group, City) Dichotomous and multiple choice questions Open- Ended questions were put in to get the views of the respondents at large Codes were assigned to response of classification questions and to the rating questions 2.6 Sampling Techniques Sample Unit The sample un
18、it for research comprises of: End user of different clusters Dealers of different clusters 11 Sample Size The sample size for study was 100 respondents and 450 dealers from different clusters comprises of different zones of Delhi, Where list of retail outlets, along with their addresses and route ma
19、ps, as provided by the distributors. Sampling Procedure we selected various respondents that comprises of End user on simple random sampling method and distributor provided data. Data Analysis and representation The data collected was analyzed differently in each category One category used regressio
20、n analysis while other used simple statistical measures and frequency distribution The average ratings of performances were arrived at by taking out the simple average of the sum of the rating given to a particular performance parameter. The representation was done using graphs and charts and scree
21、plotting. Field work 3.1Markets Visited 1 East Delhi 2 West Delhi 3 South Delhi 4 North Delhi The different customers whom the distributor serves can be classified as: Grocery General/ Stationery shops Pan/Beedi Shops Superstores, housing all types of product categories Chemist/Druggist Confectioner
22、ies Multi Format Stores (MFS),e.g. Big Bazaar,Spencers,etc. 12 Food Stalls Hotels & Restaurants Canteens Tea Shops AMUL parlours Ice cream & Soft Drinks Shops(IC/SD) Coffee Shops The outlets are also classified by their locations. The various location segments are as follows: Airport Bus Stand Railw
23、ay Station Picnic Spot Cinema Hall Hotel, Caterer & restaurant School/College Highway Market Place Main Road Office/BPO Petrol Pump Institution Shopping Mall Scope of Research The research was conducted in two phases first analyzing of all categories two determine scope of entrance second phase incl
24、uded constructing of a business plan Limitations 1The research was conducted in Delhi only selected cities so it cant be generalized for Indian Market 2Few questions in are not answer by respondents 3Lack of area knowledge so it was difficult to locate dealers and end users 13 4This study need more
25、time and need to approach more areas for more accurate responses 5Competitors manager and sales persons sometimes hesitate to provide any internal information. 6Dealers and end users are busy in their schedules so there is lack of time 7Niche market for each category was not differentiated. 14 Chapt
26、er 3: Critical review of literature TITLE: GOWTH ANALYSIS OF FMCG SECTOR SOURCE: SURVEY BY TATA INVESTMENT CORPORATION YEAR: 2008 TATA Investment Corporation Limited, invested in long-term investments in equity shares and in a wide range of industries. TICL invested in almost all the sectors. TICLs
27、portfolio proved to be a very successful portfolio. They had got a very good return from all the sectors. Among these sectors, Fast-Moving Consumer Goods (FMCG) proved to be a very successful sector. It has a very good potentiality in long term in India and on May 20, 2008, this investment valued Rs
28、. 306.72 crores investment in FMCG sector was 5% of the overall investment that was increased in 2008 to 15%of the overall investment. Thus from this, we can value of investment. For this sign malls, etc. in India, the FMCG sector is one of the booming had chosen this sector for my equity analysis.
29、Below, I had given detail investment of TICL in FMCG sector: analyzed non-banking financial company registered with Reserve Investment Company category. The companys activities comprise other securities of companys portfolio. The overall cost of investment in FMCG sectors, i.e. the cost of value of
30、conclude that, there is a 2140.47%significant increase and also recent development of retails shops, sectors in India. WHY INDIAN MARKET? Large domestic market India is one of the largest emerging markets, with a population of over one billion. India is one of the largest economies in the world in t
31、erms of purchasing power and has a strong middle class base of 300 million. 15 India - a large consumer goods spender An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individua
32、l spending along with the large population base is another factor that makes Rural and urban potential Rural urban profile urbanrural Population 2001/02 mn household 53135 Population mn 2009/10house hold 69153 % distribution2872 Market / towns3768627000 Universal outlets13.3 Source :satatiscal outli
33、ne ofIndia(20062007)NCAER Around 70 per cent of the total households in India (188 million) reside in the rural areas. The total numbers of rural households are expected to rise from 135 million in 2001-02 to 153 million in 2009-10. This presents the largest potential market in the world. The annual
34、 size of the rural FMCG market was estimated at around US$ 10.5 billion in 2001-02. With growing incomes at both the rural and the urban level, the market potential is expected to expand further. Demand-supply gap Currently, only a small percentage of the raw materials in India are processed into va
35、lue added products even as the demand for processed and convenience food is on the rise. This demand supply gap indicates an untapped opportunity in areas such as packaged form, convenience food and drinks, milk products etc. In the personal care segment, the low penetration rate in both the rural a
36、nd urban areas indicates a market potential. 16 CHANGE IN INDIAN CONSUMER PROFILE Consumer profile200120042008 Population(millions)94610121187 Population20000)307.3 Chart 1.2.1 Interpretation:- The above pie chart shows the classification of retail outlets present in areas under study. The categoriz
37、ation is made on the basis of monthly sales of Parle products by the retailers and the whole sellers. It has been divided into 6 categories mentioned above. There are no “A” category outlets as Parle covers all the Retail outlets under study whereas category “B” has highest share of 56% with 230 out
38、lets and most of total retail outlets fall under Category “B” & Category “C” (80%) visited by the Researchers here. 50 It can be seen that only 7% outlets fall under category “E” i.e greater than Rs20000 1.2 Visibility of PARLE products For Biscuits: Table 1.3.1 BRAND (Biscuits)No. of shopsTotal% VI
39、SIBLE Parle-G410410100.0 Krackjack38541093.9 Monaco39441096.1 Monaco Funion7541018.3 Hide&Seek25541062.2 Milano8541020.7 Orange Kream33041080.5 Mango Kream38841094.6 Elachi Kream39341095.9 Pineapple38141092.9 Chocolate Kream37741092.0 Golden Arch354108.5 Nimkin10141024.6 Marie19841048.3 Milk Shakti1
40、8541045.1 51 Bourbon21041051.2 20-20 Butter34041082.9 20-20 Cashew33241081.0 Chart 1.3.1 52 Interpretation:- 53 Brands such as Parle G, Krack jack, Monaco, Orange Kream, Mango Kream, Pineapple Kream, Chocolate Kream, Elaichi Kream are visible in almost all stores (90-100 %) but brands such as Monaco
41、 Funion, Golden Arch & Numkin were not available in many stores. 1.3 Coverage with respect to competitors Table 5.2.3 BRANDDirectIndirectNo Coverage PARLE367430 ITC3082181 BRITANIA3052778 PRIYAGOLD28126103 Chart 1.5.1 Chart 1.5.2 Chart 1.5.3 54 Chart 1.5.4 Chart 1.5.5 55 Interpretation: Among the co
42、mpetitors only Parle covers most of the outlets (90%) directly, rest covers approx. 70-75 % of outlets directly. Also ITC, Britannia & Priyagold has no presence in approx. 20-25 % outlets but Parle full coverage. This is the strength of Parle Company. 56 1.4 Brand availability with respect to compet
43、itors Table 1.6.1 BRANDNo. of Brands Nil1 to 56 to 1011 to 15 PARLE02088302 ITC812278517 BRITANIA781939940 PRIYAGOLD10311214451 Chart 1.6.1 57 Chart 1.6.2 Chart 1.6.3 58 Chart 1.6.4 Chart 1.6.5 59 Chart 1.7.1 Interpretation:- It can be seen that in most of the outlets (56%) Parle sales come under ca
44、tegory “B” as compared to other categories. Compared to competitors the company tops Category “B”. Company share in Category is also far higher than that of competitors. So, every company has sales of 1-5000Rs in 50 % outlets Analysis on organized retail outlets 2.1 Parle Sales in Organized Retail T
45、able 2.1.1 Category SalesNo. of outlets (Parle) No coverage00 A1-150001 B15001-3000010 C30001-4499911 D=450008 60 Chart 2.1.1 Interpretation:- It can be seen that 35% of outlets have Parle sales between 30,000Rs and 45,000 Rs which is a very good indication. And 27 % outlets have Parle sales above 4
46、5,000 Rs. 2.2 Parle Sales with respect to competitors in organized retail outlets Table 2.2.1 Category Sales No. of outlets (Parle) No. of outlets (ITC) No. of outlets (Brit) No. of outlets (Priyagold) No coverage00405 A1-150001525 B 15001-300001020518 C30001-45000115142 D450008490 61 Chart 2.2.1 In
47、terpretation: In organized retail outlets Britannia beats Parle in Category “C” (30001-45000). And this is because Parle products are cheaper as compared to Britannia and so sales are high. 62 2.Analysis on Consumer Behavior 2.1Type of biscuits preferred Table 2.1.1 Biscuit PreferredNo. of consumers
48、(out of 100) Glucose38 Salty08 Sweet and Salty15 Kreams25 Cookies14 Chart 2.1.1 63 Interpretation:- The above graph shows the types of biscuits preferred by the consumers. Glucose is most preferred (38) by the consumers followed by kreams (25). Whereas Salty (8) holds the last position. 2.2Preferenc
49、e between organized and unorganized retail stores to buy biscuits and confectionary Table 2.2.1 Type of StoreSales Unorganized retail (Kirana) stores76 Org. retail stores24 Chart 3.3.1 64 Interpretation:- The above pie chart shows the place from where people prefer to buy biscuits and confectionary. The study shows that 76% of people prefer to buy them from general kirana stores whereas 24% people prefe