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Submitted by
SELVAPREETHAM
1713081
AUGUST - 2018
PAMBANSWAMY NAGAR
THIRUPPARANKUNDRAM
MADURAI - 625005
CERTIFICATE
To whomsoever it may concern
Certified that the summer internship project report “Study on factors affecting
purchase intention of dairy products and suggest strategies to increase dairy
Place Ms.N.Y.Preethalakshmi
Date SUPERVISOR
Assistant professor
Marketing/TSM
ii
iii
DECLARATION
I certify that
a. The work contained in this Summer Internship Programme is original and has been done
b. The work has not been submitted to any other Institute for any degree or diploma.
c. I have followed the guidelines provided by the Institute in writing the report.
d. I have conformed to the norms and guidelines given in the Ethical Code of Conduct of
the Institute.
e. Whenever I have used materials (data, theoretical analysis and text) from other
sources, I have given due credit to them by citing them in the text of the thesis
f. Whenever I have quoted written materials from other sources, I have put them
under quotation marks and given due credit to the sources by citing them and
SELVAPREETHAM
iv
ACKNOWLEDGEMENT
I put forth my heart and soul to thank the management of Britannia Industries Ltd,
Chennai for giving me a golden opportunity to pursue my summer internship with them.
I also extend my deep sense of gratitude to Mr. Sasi kumar, Territory sales in-
charges in Chennai modern trade for giving me the opportunity to undertake my
internship program and his valuable suggestions throughout my internship also for
the constructive criticism he gave me at every step of my internship. I also thank Mr.
Manikanda Prabhu Everest, Area Sales manager, south – 2 for facilitating us with
this program. I would also like to thank Mr. Murugan, Mr. Sathish, Mr. Sarath and Mr.
Sabari, AWSM, Precious & Metro Trading co for their efforts with me in the market.
I sincerely thank Ms. N.Y. Preethalakshmi for guiding me throughout and after my
internship program.
V
ABSTRACT
Independent Modern Trade (IMT) in Britannia Industries Ltd deals with supply of merchandise to all
the chain stores, current outlets and grocery stores. There are an assortment of reasons that outcome
in stagnated sales and every one of the pitfalls are not recognized legitimately and the open doors are
not completely investigated and used, this examination goes for finding the primary variables in
charge of the drop of dairy sales in many stores and the sales people adequacy in pushing the items
and increment sales and how development can be evaluated for Britannia. Incremental sales has
dependably been an inconvenience, through this investigation we discover what are factors that can
be controlled and what are the techniques which can be received to build the deals and help the
organization develop more. The market potential isn't completely used and there are dependably
instances of stocks inaccessibility, installment issues, and recurrence of charging issues. The
productivity and viability of the wholesalers are considered and techniques are recommended to
execute the distinguished components. Through this study we can find out the factors and gaps that
exist as an impediment to achieve enormous sales.
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TABLE OF CONTENTS
1 INTRODUCTION 12
1.1 Background 13
1.2 Scope of the study 14
1.3 Objective of the study 15
2 LITERATURE REVIEW 16
2.1 Supply chain performance attributes 17
2.2 Distribution and Promotion effectiveness on sales 17
2.3 Market orientation, distributor relationship, and return on assets 18
2.4 Distributor sales force performance management 18
2.5 Gaps between inventory management theory and practice 18
2.6 Distribution channels for consumer goods in india 19
2.7 Distribution strategies and channel partner performance 19
2.8 Consumer behavior towards the new packaging of FMCG products 19
2.9 Exploring branding strategies of FMCG,services and durables
20
3 RESEARCH METHODOLOGY 21
3.1 Overview 22
3.2 Sampling technique 23
5 CONCLUSION 42
5.1 Conclusion 43
LIST OF TABLES
INTRODUCTION
12
INTRODUCTION
1.1 BACKGROUND
India's retail division is justified regardless of an expected USD 350 billion and is developing at
between 30 to 40 percent for every annum. Most worldwide brands, retailers have announced
their enthusiasm for entering this mind boggling, horde and energizing retail advertise. Others
have just entered the market and are making expansive scale speculations into the segment.
It has been watched that as current exchange develops and creates the transitional economies,
adversaries that composed retail will dislodge the kirana stores or the chaotic division. So,
investigations of transitional economies demonstrates that cutting edge exchange which includes
➢
Reduces wastage over India's ranch to-fork store network
➢
Strengthen India's situation as a sourcing center point to the world
➢
Results in expanded business
➢
Introduces expanded decision and assortment of items into the market
➢
Levels the playing field regarding "way of life equality"
➢
Ushers in essential innovation speculations and best practices exchange
While the retail area is yet to be changed, the Government has made a stride in this tact by
permitting a most extreme of 51 percent value support by outside organizations in a joint wander
with an Indian organization presented in January 2006, single-mark passage has been utilized by
a few extravagance brands/players as a way to enter the dynamic Indian market.
Buyers typically confront an extensive variety of items, benefits that may fulfill their need. Fulfilled clients
purchase again and enlighten others concerning their great encounters. Disappointed clients frequently
change to contenders and defame the items to others. Advertisers must be mindful so as to set the correct
level of desires. In the event that they set their desires too low, they should fulfill the individuals who
purchase however neglects to draw in enough purchasers. In the event that they raise the desires too
high, purchasers will be frustrated .Customer esteem and consumer loyalty are the key building obstructs
for creating and overseeing client connections. We have picked this as the theme in light of the fact that
Britannia is supporting in the nourishment business for more than 120 years, till now the accomplishment
of Britannia items is high and they have not wavered much in the market. The reason for this investigation
is to comprehend the IMT and its holes and openings regions in South
13
Chennai. Any possibility lost because of the inaccessibility of a Britannia item is named as
hole in the organization circle.
14
1.3 OBJECTIVES OF THE STUDY
✓
To identify the gaps and opportunities for the independent modern trade to
increase the Britannia dairy sales
✓
To identify the factors that influence purchase decisions of the customers
15
CHAPTER 2
LITERATURE REVIEW
16
LITERATURE REVIEW
2.1 This exploration paper “Supply chain performance attributes for the FMCG industry” by
Madhu Bala Dinesh Kumar recognizes the inventory network execution credits that are applicable
to the Fast Moving Consumer Goods (FMCG) industry. The FMCG supply chains are broke down
from the point of view of procedures, parts and typology. The common issues looked by the
FMCG supply chains are likewise investigated. Three inventory network operational models are
thought about and recognize SCOR as the one most appropriate for the FMCG business. The
review, directed with the respondents from four research cases crosswise over two item
classifications, shows the acknowledgment and the use of the execution characteristics for the
FMCG supply chains. The outcomes likewise incorporate the investigation of the typology of the
examination cases crosswise over two item classifications.
17
2.3 “Market orientation, distributor relationship, and return on assets optimizing
distribution performance for industrial firms” deals with the reason – The
motivation behind this paper is to investigate how showcase introduction is identified
with relationship building results in the downstream conveyance process. The
creators inspect the part of wholesaler fulfillment in intervening the relationship
between advertise introduction in dissemination and profit for resources.
Plan/philosophy/approach – Market introduction in appropriation was estimated by
merchant introduction, contender introduction, and interfunctional coordination.
Discoveries – Results demonstrated that the positive connection between advertise
introduction in dispersion and wholesaler fulfillment was unequivocally bolstered. While
wholesaler introduction and contender introduction were both decidedly related to merchant
fulfillment and return on resources, interfunctional coordination was not identified with either
wholesaler fulfillment or profit for resources. Be that as it may, interfunctional coordination
diminished the positive connection between merchant introduction and wholesaler fulfillment.
2.5 This paper “Gaps between inventory management theory and practice: A critical
examination of emerging trends from the FMCG Industry”by Navneet kumar,Abraham
George endeavors to distinguish the hole between stock administration hypothesis and
practice in light of the basic examination of the patterns in scholastic research and the
rehearsing scene. It likewise endeavors to give proposals to conceivably connect this hole.
Remembering these destinations, key research distributions and articles in the zone of
18
completed merchandise stock administration written in most recent 30 years by inquire about
researchers and professionals were looked into. FMCG industry was chosen as a benchmark
for completed merchandise stock administration best practices and the difference of
scholastic research with genuine stock administration hones was dissected. Some inventive
and intriguing thoughts for expanding the cooperative energy have been proposed. This
paper additionally features the ongoing advancements in stock administration rehearse in
FMCG industry and inspect the exploration work toward this path.
2.6 “Distribution channels for consumer goods in India: past, present, and future
directions “by P. Mishra state university of New York briefs the India's economy is
anticipated to develop at a quick clasp throughout the following couple of years. With
expanding obtaining power and a rising white collar class, the quick moving purchaser
products (FMCG) industry is postured to develop drastically. To use openings, FMCG
producers and retailers should create and execute ponder procedures for picking up
showcase get to. This paper gives an inside and out take a gander at the key part of
appropriation directs in the FMCG business. In particular, it studies the condition of
current dispersion diverts in India and distinguishes four prime examples that FMCG
firms can use as a beginning stage to build up their conveyance system later on.
2.7 This study “Distribution strategies and channel partner performance” focuses on the
circulation technique for upgraded station accomplice execution in Insurance, Mobile telecom and
Fast moving customer products (FMCG) Sectors. The measurements considered in the
investigation were Motivating channel individuals, uplifting state of mind towards channel,
furnishing the channel individuals with advertise learning, helpful credit office, consistent and
compelling correspondence and being forceful. Results demonstrated lesser connection between
the wholesalers and station administrators of protection division, though the Mobile telecom's
merchants associated with that of the station supervisor's disposition. The mentality of High
performing merchants and channel supervisors of FMCG segment were comparative, while it
didn't associate with that of the low performing wholesalers.
2.8 The paper “Consumer behavior towards the new packaging of FMCG products” by
Mital deliya deals with the significance of bundling outline as a vehicle for correspondence
and marking is developing in aggressive markets for bundled FMCG items. This exploration
used a concentration bunch system to comprehend customer conduct toward such items.
The test for analysts is to coordinate bundling into a viable obtaining choice model, by
understanding Consumer's conduct towards the bundling of FMCG items. At the point when
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customers look for and process data in-store, the item's bundle can contain significant
and helpful data for the shopper. Item bundling frames the finish of the 'advancement
chain' and is shut so as to the real buy and may in this way assume a critical part in
anticipating purchaser results. Bundles additionally convey mark distinguishing proof and
name data like utilization guidelines, substance, and rundown of fixings or crude
materials, admonitions for utilize and orders for care of item.
2.9 The paper “Exploring branding strategies of FMCG, services and durable brands”
by Bikram Jit singh Mann plans to break down and look at the marking systems utilized
as a part of the three divisions to be specific FMCG, administrations and durables.
Plan/procedure/approach – Based on the writing review, a more thorough rundown of
branding strategies is proposed. A substance investigation of 600 haphazardly chose
brands, 200 from every area, is performed. The marking techniques utilized as a part of
the three segments are clarified and MANOVA is directed to test the speculations about
contrasts in the marking procedures over the three divisions.
Discoveries – The outcomes uncover that the marking methodologies differ over the three
parts. Single corporate brand procedure is prevalently utilized for durables and assurance
administrations. Then again, if there should be an occurrence of FMCG and experience
administrations, singular brand compose supported by the corporate brand write is the
most habitually utilized marking technique. In this way, there is a pattern towards corporate
marking as corporate brand write is main stream in every one of the areas. Likewise, other
than the single corporate brand technique, as if there should arise an occurrence of
durables and confidence administrations, single brand compose system is infrequently
utilized. For FMCG brands and experience administrations brands, organizations are
endeavoring to use mark value of at least two brands composes.
Down to earth suggestions – The paper offers bits of knowledge for outlining
marking techniques when marking an item/benefit. Brand directors may depend on
corporate brand compose when hazard related with a buy is high, as if there
should arise an occurrence of durables and confidence administrations. In any
case, when the hazard related is low, as if there should be an occurrence of FMCG
and experience administrations, singular brand compose might be favored, yet in
the meantime, it ought to be supported by corporate brand write.
20
CHAPTER 3
RESEARCH METHODOLOGY
21
RESEARCH METHODOLOGY
3.1 OVERVIEW
“Research is organized enquiry that uses satisfactory logical strategy to tackle
issues and make new information that is for the most part pertinent"
It is the organized way to deal with request is typically named Quantitative research.
Here everything that structures the examination procedure – Objective, Design,
Sample and the inquiries that you intend to ask of the respondents is foreordained.
Source of data
➢
Primary Data
➢
Secondary Data
Primary data
➢
The survey arranged was an organized closed end survey.
➢
The survey depended on the questionnaire.
Field perceptions were additionally used to give essential information meaning and in
view of the perceptions the conclusions are drawn.
Secondary data
The trainee needed to gather deals information and outlets records and deals
reports from the Udaan application to have an essential learning of the development
of merchandise in the store before the study was finished.
22
3.2 SAMPLING TECHNIQUE
Cluster sampling refers to a type of sampling method. With cluster sampling, the
researcher divides the population into separate groups, called clusters. Then, a
simple random sample of clusters is selected from the population. The researcher
conducts his analysis on data from the sampled clusters.
Compared to simple random sampling and stratified sampling, cluster sampling has
advantages and disadvantages. For example, given equal sample sizes, cluster
sampling usually provides less precision than either simple random sampling or
stratified sampling. On the other hand, if travel costs between clusters are high,
cluster sampling may be more cost-effective than the other method.
Here the population has been divided in to different beats and they are then
sampled. The sampling is done with the retailers and thus the six beats are chosen
from the available nine. The selected beats for sampling
1. Medavakam
2. Pallikaranai
3. GST
4. Aadambakam
5. OMR
6. Velachery
Sample Size- 70 out of the 110 outlets available in the distribution points are surveyed.
23
3.3 RESEARCH FRAMEWORK
24
CHAPTER 4
RESULTS AND DISCUSSIONS
25
GAPS AND OPPURTUNITIES FOR MODERN TRADE IN INCREASING SALES
4.1 MOVEMENT OF CRITICAL BRITANNIA PRODUCTS
One of the primary goals given to me was to discover the relative development of
certain Britannia items that should have been examined as a result of their stop and
begin development in the market.
➢
Butter
➢
Cheese
➢
Cheese Spreadz
➢
Cheese blocks
➢
Yoghurt
26
PRODUCT AWARENESS:
Among all retail outlet visits the inference made with the enquiry of awareness about the
Britannia dairy product is with the composition of 60% of the sample from the population are
unaware of the product and 40% of the sample got to know the product existence.
27
BRAND TRUST:
The brand trust percentage for the brand Britannia is relatively high which gives us the
interpretation that proper streamline of marketing and promotion of the product, making the
customer aware about the product existence can increase the sales of Britannia dairy products
28
WILLINGNESS:
Customer’s willingness rate to try out Britannia dairy products are 75.71% high and 7.14%
very high and 12.86% Neutral, who has very less needs of consuming dairy products in
general. The valid frequency rate
ranges from with a cumulative of 7.1% with a valid high percentage of 82.1 which
proposes the acceptance rate of Britannia dairy product is relatively high and the
scope for increase in sales is also there.
29
FREQUENCY OF CONSUMPTION RATE: (Cheese and butter)
Cumulative
Frequency Percent Valid Percent Percent
Valid Rarely 28 30.1 40.0 40.0
From the above observation, It is found that nearly 40% of the consumers rarely include cheese
in their food habit which implicated their need for cheese is relatively low which supports the
stagnated sale of cheese and various sku’s of cheese but still there are potential customers of
35.71% who uses cheese sometimes in food and they can be pulled into our brand
with proper promotion and pricing strategies
30
FREQUENCY OF CONSUMPTION RATE: (Ghee)
Cumulative
Frequency Percent Valid Percent Percent
Valid Rarely 20 21.5 28.6 28.6
Consumers consumption of ghee in their meal is not so welcoming but there is a high rate of people
wo uses ghee sometimes at the rate of 67.14%whereas the consumers who uses ghee occasionaly
ranges to 28.57%.People have become more health conscious and very well aware of what to
consume and what not to and what quantity to consume. There’s not a high scope comparing to
other products but still the market can be captured with proper promotion and pricing strategies
31
FREQUENCY OF CONSUMPTION RATE: (Yoghurt)
Consumers consumption of yoghurt in their meal is not so welcoming but there is a high rate of people
who uses ghee sometimes at the rate of 67.14%whereas the consumers who uses ghee occasionally
ranges to 28.57%.People have become more health conscious and very well aware of what to consume
and what not to and what quantity to consume. There’s not a high scope comparing to other products
but still the market can be captured with proper promotion and pricing strategies
32
DAIRY BRANDS CUSTOMERS USE DAILY
Amul,Milkymist,Britan
1 1.1 1.4 98.6
nia
33
Figure 4.8 List of Dairy brands customers use daily
34
FACTORS THAT AFFECTS PURCHASE DECISION OF CUSTOMERS:
PURCHASE DECISION FACTORS:
50
40
30
Frequency
20
10
0
Price Quality Package Brand
From the above inferences it’s been observed that most of the consumers look for Price and
quality in a product and they prioritise it over any other factors.Since Britannia dairy products
are a pinch expensive to it’s competitiors the reason for slow movement of products is evident.
35
4.2 REGRESSION ANALYSIS
From the observed factors, the averages were calculated and the data was used for
regression analysis with the dependant variable as age (Increase of sales over the
FY), the other factors were observed as independents.
Model Summary
Change Statistics
Mode R Adjusted R Std. Error of R Square F Sig. F
l R Square Square the Estimate Change Change df1 df2 Change
Total 52.871 69
a. Dependent Variable: age
b. Predictors: (Constant), Purchase decision factors
Table 4.10 Regression ANOVA results
Coefficientsa
Purchase decision
-.615 .135 -.483 -4.554 .000 -.884 -.345
factors
a. Dependent Variable: age
Table 4.11 Regression analysis results
All the above factors have a significant relationship with purchase decision
and the demographic factor age.
Through the equation and its coefficients we can identify that SUP factor (F3) has
negative effect on overall increase in sales and subsequently Purchase decision.
36
ANOVAa
Model Sum of Squares df Mean Square F Sig.
The above table interprets the frequency of the factors that influence the purchase intention of
the customer who steps into a retail outlet with the brand trust they have towards Britannia
5
4.8
4.3
4 4 Britannia
Quality
3.47 Amul
3 3
Milkymist
2 2 Heritage
Aavin
1
Nilgris
0
0 1 2 3 4 5
Price
Amul ,who captures a lion’s share in the market. Britannia as an emerging competitor to
the existing dairy brands have high scope of surpassing them with right promotional and
pricing strategy.People would look into Britannia if the price is considerably nominal.
.
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Package and Brand mapping
5
4.5
4 4.1 4
3.97
3.5 3.47
Britannia
3 3 3
Package
Amul
2.5
Milkymist
2
Heritage
1.5
Aavin
1
Nilgris
0.5
0
-1 0 1 2 3 4 5
Brand
From the above inferences it’s been observed that the brand and package of Britannia is in par with
Amul though they capture a lion’s share in the market. Britannia as an emerging competitor to the
existing dairy brands have high scope of surpassing them with right promotional and pricing strategy
3.47 Amul
3 3
Milkymist
2
Heritage
1
Aavin
0
0 1 2 3 4 5 Nilgris
Package
From the above inferences it’s been observed that the Quality and package of Britannia is in par with
Amul though they capture a lion’s share in the market. Britannia as an emerging competitor to the
existing dairy brands have high scope of surpassing them with right promotional and pricing strategy
38
4.4 FINDINGS FROM THE MARKET
From the detailed observation of all retail outlets under metro trading and co for the past few
months in Tambaram beat. The market potential for dairy products is relatively less
compared to the other beats like OMR, Anna nagar, KK nagar, Sholinganallur etc.. Due to
the economic indifferences of the consumers. The need for cheese, yoghurt, UHT milk and
dairy whitener are also comparatively less to the moving of ghee and butter. Basic dairy
products consumed daily by consumers are Milk, curd and ghee at occasions
People are more keen towards primarily price of the product and secondarily the quality.
Though now-a –days most of the households and consumers are brand conscious, People
are still aware and awake about their needs and the price they want to satisfy those needs.
For example:
If A is a consumer walking into a retail outlet to buy a milkshake with no clue about what
brand has to choose or without any prior brand experience. In this scenario, Milkshake is the
need of the customer and he has a milkshake right before him with a price of 20Rs from
Amul, cavin or any other brand and a price of 40Rs from Britannia, though the quality,
package and availability of the ou product is superior over the competitors, the consumers
prefer the one with a nominal price and majority of them make compromises with the quality
over the price. Only a least set of consumers prefer quality even over the price.
Regarding cheese and butter, The people from middle class who walks into a
retail store are not even aware of how to use cheese and they find it completely an
alienated food item to what they use daily and the rest who consumes cheese and
butter are were likely to use Amul or milkymist.
The slow movement of Britannia dairy products in the retail stores is majorly due to the following reasons
1. Need for the product is less which is a cause of low market potential
2. Awareness about Britannia dairy among customers is less
3. Less Availability of products and less SOS
4. Customer’s clinging towards the Market leader.
39
➢
The merchandisers are not the most legit specialists in the organization circles, every
merchandiser should spend around a hour in each shop they visit, 6 shops per day, 6 days seven
days, yet the genuine happening is a considerable measure extraordinary and most
merchandisers discover escape clauses to not perform what they are proposed to do.
Productive linkage of the promoting application with the TSI or administrator's
application is important to watch out for them.
➢
The stores should be more mindful of the different motivators and how they are connected
regarding the UMANG program. The UMANG program isn't just for the retailer's development
it is additionally for the brand deceivability and consciousness of Britannia and the same
must be dealt with and they need to ensure that the UMANG edges are dealt with.
➢
The inventive results of Britannia should be given greater deceivability and the merchandisers
should deal with that and they may even utilize strips showcases to feature the Biscotti items,
the deceivability and development of most creative items is low.
➢
Customers are as yet unconscious of the way that Britannia bargains in the dairy section
additionally, despite the fact that with a 25% piece of the overall industry this is the situation.
The marking group needs to promote and publicize quick with a specific end goal to
retain the potential there.
40
4.5 SUGGESTIONS:
➢
Placing pamplets and ad boards in the bill counter to make the customers aware of
Britannia dairy products
➢
Placing Britannia dairy ad pamplets over the coolant, so the consumer will get to
see that Britannia has dairy products too
➢
No ads are there in Tamil for Britannia dairy products and that’s the main reason
for people being ignorant about though the company holds high brand status
➢
The prices of Britannia milkshakes are double times higher than anyother milkshakes
in the market which would result in less sales movement though the quality is good.
➢
Availability of the products should be made sure,so in the absence of the market
leader we can have a possibility to penetrate in.
➢
Inorder to make even the middle class consumers to consume cheese and butter,the target
must be the school kids. So introducing some school packs with reasonable price will kick
start the sale.
41
CHAPTER 5
CONCLUSION
42
5.1 CONCLUSION -
From the above findings we incur that Price, quality, brand and package are the factors
that influence the purchase intention of a customer which is significantly related to the
demographic factor ie) the age of the customer who picks up the product.
Britannia Dairy has incredible market potential and the company should start off with
advertisements first before they can efficiently start selling the products. The
customer awareness is lacking big time with respect to the Britannia dairy segments.
Britannia with its brand name can do wonders and that is very abruptly seen when
the market is visited, Britannia has to convert that and get the sales to increase.
43
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Abhaya Mishra and Sajeev Abraham George, “Gaps Between Inventory Management Theory And Practice:
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APPENDICES
45