Executive Summary

Indian snack food industry comprises of many Indian as well as MNCs.

The Indian snack market reached a value of $307.7 million in 2001. The Indian
snacks food market is of the order of 400,000 tones. This wide range of
products are categorized under Potato / Banana Chips, Namkeens & FunFoods. The organized market for chips is estimated to be 6500 tons valued at
Rs.2 bn. The market for branded chips has been growing at a fast pace of
around 20-25 % annually.
Since the majority of MNC's entered their venture in Ready-To-Eat Snacks
& Namkeens. The project was conducted to study the overall industry for
Ready-To-Eat Snacks & Namkeens. The research was conducted to study the
actual buying behavior of the consumers and their preference for such a
category

of

food.

Research

methodology

being

exploratory

research

Questionnaire method to interview consumers as well as retailers was adopted.

Retailers were surveyed to know the actual market behavior, whereas the
consumers were surveyed to know their preference and factors affecting their
purchase. Secondary data on industry is collected through Internet, magazines
& by visiting the people in the industry.
The Research was a good experience & the final conclusion is that the
consumers generally associate Ready-To-Eat Snacks & Namkeens with Time
Pass. Majority of them prefers wafers to be their first choice with Fraiams being
the second preference. Namkeens on other hand are usually preferred as
hunger quencher and are eaten whenever the consumers are hungry.
Ready-To-Eat Snacks & Namkeens are generally considered as take away
food and hence the consumers generally buy 1-2 packs and does not store
them. Through the research it was concluded that the consumers want even
POPCORN to be included in this category which is also an opportunity for the
manufacturers to launch a new product and extend their product width. Overall
the industry is grooming and has vast opportunity to be cashed for the
manufacturers.

Table Of Contents
PARTICULARS

PAGE NO.

INTRODUCTION ______________________________________________02

PROBLEM STATEMENT_________________________________________03

RESEARCH OBJECTIVE_________________________________________03

INDUSTRY OVERVIEW _________________________________________04

CATEGORIES & PRODUCT OVERVIEW __________________________05

POTATO CHIPS__________________________________________05

BANANA CHIPS _________________________________________06

NAMKEENS_____________________________________________07

FUN-FOODS____________________________________________09

PACKAGING ______________________________________________10

COSTING & PRICING________________________________________11

DISTRIBUTION ____________________________________________11

CONSUMER PROFILE________________________________________12

SAMPLING DESIGN ___________________________________________15

RESEARCH DESIGN ___________________________________________15

DATA COLLECTION____________________________________________16

DATA ANALYSIS______________________________________________16

RETAILERS POINT OF VIEW __________________________________17

CONSUMERS POINT OF VIEW_________________________________22

MARKETING & ADVERTISING STRATEGY___________________________26

FACTS & FIGURES ____________________________________________27

CONCLUSION & RECOMMANDATION______________________________28

APPENDIX___________________________________________________29

QUESTIONAIRE FOR RETAILERS_______________________________29

QUESTIONAIRE FOR CONSUMERS _____________________________30

NLDIMSR

BIBLIOGRAPHY_______________________________________________31

Project Report On Trends Of Direct Selling In Mumbai

INTRODUCTION
COMPANY PROFILE
GUNJAN a name associated with discerning consumers for
sweets and namkeens for past six decades in India and abroad. It
made its modest start in the beginning of way back in 1941 in
Sagar , a state of Rajasthan. The brand name GUNJAN
BHUJIYAWALA was introduced during pre-partition era
1941, subsequently the reach was extended to eastern pert of
India i.e. ,Kolkata in 1958, further consolidated to western India
also at Nagpur in 1968 and from there it never looked back and
ventured first major step in this direction by opening up a in
Chandni Chowk in 1983, the main hub of commercial centre is
in Delhi. The prime focus was to serve sweets and namkeens
amongst direct consumers and the trade.
GUNJAN Originated in blue year 1902 at Sagar in Rajasthan.
During its earliest year it was lead by three brothers Shri
Moolchand , Shri Satyanarayan and SHRI Ramesawar. Shri
Moolcahnd and his four sons namely Shri Shiv Kishan, Shri
Shiv Ratan, Shri Manohar Lalan and Shri Madhusudan
diversified into different territories of India.
Encouraged by tremendous response of consumers, GUNJAN
decided to go for up-gradation on technology, packin,
production etc. with the installation of plant machinery of of
3

order of best available state of the art technology and

sophistication. Through dint of hard work, complete dedication,
uncompromising quality, - GUNJAN became a part of each
family.

GROWTH PLAN
In 1992, when GUNJAN turned itself into a group segment, a
most sophisticated
manufacturing centre cum showroom was established at Main
Sagar under the banner GUNJAN MANUFACTURING
COMPANY LIMITED which was a run away success. The
GUNJAN group three sister concerned established at Sagar ,.
All three are originated from ancestors in Sagar , Rajasthan.
Now the three concerns operates in different states of India.
The New Delhi unit caters to Punjab, Haryana, Uttar Pradesh,
Bihar, Jammu &Kashmir , Himachal Pradesh and part of
Assam. The firm at New Delhi runs four firms offering different
productsGUNJAN Manufacturing Co. Ltd. :

Namkeens

GUNJAN Marketing Ltd.

Sweets

Gunjan Snacks (P) Ltd.

Papads

Gunjan India Pvt. Ltd.

Syrups & Sharbats

The company also has three show rooms in Parkota Road Sagar,.
These offer variety of fast foods as well as traditional foods.
5

Trust in quality is an obsession which is being enjoyed by

million of families. The quality of salty snacks and scrumptious
sweets , met the international standard and speak for itself. To
sustain in competitive market, GUNJAN has endeavored
stress on quality, packing, shelf life, competitive price with
special emphasis on consumers satisfaction and its lingering
taste is amongst the best available in the world. GUNJAN
showroom has become the most sought after one and is catering
to the choice of millions to their utmost satisfaction with
retention of trust reposed and presence felt. To say the least,
amongst the sweets and namkeens, we can modestly say you
name it-we have it.
During 1993,preparation of different varieties and flavours of
syrups and crushes was undertaken under the brand name of
GUNJAN. Its marketing was undertaken in the Northern
region of the country and was well received with success.
Encouraged by the overwhelming response from the lovers of
GUNJAN the group decided to spread its wings in others part
of Delhi to reach the consumers more easily.
The group hence opened another Show
room at Lajpat nagar on the main road during March, 1999
which is being welcomed and appreciated by the customers of
South delhi who have constraints to reach Matura road.

EXPORTS
GUNJAN Group foresighted the growth potential in
fast food industry which was taking shape by leaps and
bounds.
Namkeen was one of the areas which was most sought
after and the group, without lagging behind, had set up a
most modern plant adjacent to the Show room at Main
Mathura road exclusively for the manufacture of
Namkeen. This plant was set up in the year 1997 under
the stewardship of Mr. Pankaj Agrawal, a young dynamic
entrepreneur with a flair of modern management,
leadership, open vision, result orientation. By virtue of
Mr. Pankaj Agrawal, who is the managing director of
GUNJAN GROUP, the packaging, quality, competitive
pricing etc. has become the hallmark of GUNJAN
Namkeen and with the installation of plant and machinery
from U.S.A. the company also started manufacturing
potato products and has been able to get increased share
of the market amongst stiff competition.
Needless to say that the company is
exporting its products to various parts of the world viz.
U.S.A., Canada, U.K., Europe, Middle East, Far East,
Moscow, Australia, Newzealand, Srilanka, Nepal, Japan,
Thailand, etc. and are on the threshold of penetrating
other parts of the world.
7

It is encouraging to note that the group is receiving

positive enquirys from amongst the prospective clients
abroad and is quite confident to meet their demand fully
with positive attitude, personalized service and with
quality products. Continuous efforts are being initiated to
make sure that we reach the untapped markets abroad and
earn foreign exchange for our country.

FUTURE PLANS
Looking at the tremendous scope in the fast food industry
though competition from MNCs and other giants in the
field,the group has an ambitious project on Delhi-Jaipur
Highway at Gurgaon to undertake manufacturing of
whole range of products which will house manufacturing
facilities, restaurant, Show room etc. and will satisfy the
customers to their ultimate around the World, having edge
over the others.

MISSION
Our perpetual consistent quality, best packing strategy,
vast market coverage and the number of years of
experience have given us a cutting edge vis--vis our
competitors. Our natural ilk to improve our performance
and quality with each passing year has taken us way
ahead of our nearest competitors. The people at
9

GUNJANs are very sensitive and our customer friendly

about the complaints, which infect is a rare occurrence
from the customers and dealers.

10

RESEARCH OBJECTIVES
To find out the distribution channel, market share and market
strength of GUNJANs Namkeen and suggest strategies to
increase its market share.
To study present snacks market
To find out the namkeen potential market.
To find out the market share of GUNJANs
Namkeen in comparison to Bikano, Crax, Lehar, and others
To find out the brand and pack availability in the availability
in the respective market .
To identifythe Distribution Network of GUNJAN Products.
To get overview of sales scenario of the GUNJANs Brands
vis a vis its competitors.
To judge the awareness level of retailers regarding the various
flavors of namkeens.
To analyse the retailer criteria for promoting any brand and
the needs and problems of retailer.
To collect ideas and suggestions from the market.
To find out the future market potential of namkeens.
To find out strength of GUNJAN and do SWOT analysis of
GUNJANs namkeens.
To suggest strategies to increase the market share of
GUNJANs namkeen.
These objectives were achieved by following a well thought out
plan and defining the problem for each objectives separately.
11

Sampling and other statistical tools were

achieving the given objectives.

considered

for

12

RESEARCH METHODOLOGY
Problem Identification:The project do find out the market share of
GUNJANs namkeen in Delhi and suggestion how to improve.
Collection Method of Date:The source of data collection was primary data which was
collected by personal interview, aided by structured disguised
questionnaire.
Area :Field work was carried out for the GUNJAN Marketing Pvt.
Ltd., in Delhi for the analysis of market potential of namkeen.
Sample Size:Daily around 10-20 retailer were interviewed. Therefore the
whole exercise took around 14 days.
Almost all the respondents were very helpful and forthcoming
with the information.

13

PROBLEM DEFINITION
) To study the present namkeen market (GUNJAN Vs.
Competitors)
In order to achieve the given objected data is collected from
various sources. For calculating the market share of GUNJAN
and its competitors.
1) Data is collected on the following important bases.
Various companies namkeens are available on outlets in
that areas etc.
Product quality of various
companies namkeens in
comparison to GUNJANs namkeens.
Product range of various companies namkeens in comparison
to GUNJANs namkeens.
Stock availability.
Stock level.
Annual sales figure of various outlets in that area etc.
From various localities choosen for the survey.

14

. To study tha samples distribution network in a particular

area.
By studying the routes of sample market where only tempo
and tricycle can approach.
By studying the route of sample market where only bicycle
can approach.
By plotting all the areas of importance on the map of that
locality and also pointing out all the a,b,c,d class.
A-class : Sales above 20 kg. per week.
B-class : Sales above 10 kg. to 20 kg. per week.
C-class : Sales above 1 kg. to 10 kg. per week.
D-class : Sales below 1 kg. per week

15

DATA COLLECTION METHOD

DATA SOURCES :
Primary as well as secondary data sources r used to
make project efficient and fruitful.
Primary sources of data;
a) Observations
b) Questionare
Secondary sources of data
a) Companys catalogues
b) Companys route card
c) Copmanys website
d) Business magazines and newspapers
SEARCH INSTRUMENTS
A) Observations :
Careful observations of all the outlets have been done to
find out the locations visibility, house keeping.
B) Questionnare :
Structure non disguised questionnaire and structured
disguised questionnaire has been used to collect the
information about the outlets, annual sale, stock availability,
stock level etc.

16

Data Collection Method adopted to consult of constructed

questionnaire ask from several shopkeepers about tha brand of
namkeen they sell i.e. GUNJAN, Bikano, Lehar, Crax etc. The
question generally ask to achieve the desired objectives were :1) Which companys product range is good?
2) Which companys product quality is good?
3) Which companys price range is good?
4) How much stock they have maintain at that time?
5) Whats there annual sale?
6) Whether they are willing to sale GUNJAN or its
competitors or all other namkeen?
The above mentioned questions were asked from the retailers of
surveyed sample market and data collected were analysed to
come to any conclusion.

17

FINDINGS
SWOT ANALYSIS
STRENGTH
1) The product has excellent brand awareness & a high
quality image.
2) Good and attractive packing
3) Good image position
4) Good taste
5) Good variety
6) High Market Share
7) Avalibility of brand almost on all the outlets.
WEAKNESS
1) Consumer proximity to retail outlet.
2) Sale pushing of other brands.
3) Schemes given to retailers are not enough.
4) Less profit of margin of GUNJAN productof other brand
5) Less advertisement.
OPPORTUNITY
1) By providing proper schemes GUNJAN can increase its
supply
2) By providing more profit margin GUNJAN can increase its
supply.
18

THREATS
1) Competition from Lehar, Bikano, and Crax
2) Competition fropm other brand.
3) Sale pushing.

19

LIMITATIONS
1) Some of the respondents were totally un responsive ahd
were not ready to cooperate.
2) Due to none availability of concerned persons questions
remained unanswered.
3) Some respondents were such too were not ready to
4) Biasness is the most serious limitation. Although measures
have been taken to reduce the biaseness but complete
elimination of biasness is impossible.
5) In research retailers behaviour is studied but the retailers
behaviour are not assessed correctly, therefore, their
cannot be assessed correctly.
6) The reliability of the datato great extent is dependent on
the honesty and cooperation of the respondents in
providing the information.
Thus reliability and validity of data collection through survey
method is not always without doubt.
Due to above limitations the findings may not be hundre percent
accurate

20

 INDUSTRY OVERVIEW:
The Indian snacks food market is of the order of 400,000 tonnes. At a low
average price of about Rs.35-60 a kg. Largest share of this Rs.14 bn market still
remains with unorganized sector comprising of local manufacturers. There is a wide
range of product categories differentiated based on taste. This wide range of
products are categorized under Potato / Banana Chips, Namkeens & Fun-Foods.
Chips market is largely dominated by the unorganized sector in India, which
manufactures potato chips with fat content ranging from 20% to 40% and moisture
content as high as 3-4%. These products are manufactured locally and sold loose or
in ordinary Polly-pouches. In the last 4-5 years, however, the organized market has
grown considerably catering to upper/ middle class consumers in the urban areas.
The organized market for chips is estimated to be 6500 tons valued at Rs.2 bn.
The market for branded chips has been growing at a fast pace of around 20-25 %
annually. Heavy promotions by branded chipmakers (like offering free gifts, toys etc
with these products), has led to a major shift from unbranded to branded products.
As per the views of MR. L.M AGARWAL (Executive Director of SM FOODS the
manufacturers of PEPPY/PIKNIK) today the trend is shifting from unorganised to
organised. So, the overall growth in the snacks food segment is happening between
10%-15% annually. However in the organized sector, the growth is happening at
50%-100% annually. The market is forecasted to reach a value of $459 million in
2006.

21

 CATEGORIES & PRODUCTS OVERVIEW:

POTATO CHIPS:
MARKET PLAYERS:
,

BRANDS

FRITO-LAY'S

PRODUCTS
Salted
Masala
(American
Stride
Crme & Onion)
Tangy Tomato
(Australian Cilantro
Surprise)
Red Chili Chatka
Hot & Sweet

PRICE RANGE
Rs. 5/Per 16 Gm
Rs. 10/Per 32 Gm
Rs. 20/Per 100 Gm

PACKAGE

Packed
in
Aluminum
vacuumed Packs with preprinted Brand Name & Logo,
Item Name & Package
Details and MRP and Expiry
Date

GARDEN

Premium Salted
Premium Spicy
Potato Salty Katli
Potato Spicy katli

Rs. 120 /Per Kg

Packed in Polly Propane

Plastic Pouch with preprinted Brand Name & Logo,
Item Name & Package
Details and MRP and Expiry
Date

JANTA

Premium Salted
Premium Spicy
Potato Salty Katli
Potato Spicy katli

Rs. 100 /Per Kg

Packed in Polly Propane

Plastic Bags With Brand
Name and Price Tags.

There are many others in the local organized sectors like Chheda, Raghuvansi etc in
this category operating locally in a particular location.
Recently GUNJANs has come-up with new range of potato chips in three
different tastes i.e. Paprika Chips, Pudina Treat and Classic Salted. GUNJANs chips
are also available in 75 GM packs for Rs.10/- as an inaugural offer.

22

 MARKET LEADERS:
Frito-Lay's is the market leader with a 53 % market share, followed by Uncle
Chips with 24 %. The balance market is divided among small local players.

TARGET AUDIENCE:
Generally Potato Chips are targeted towards all age groups differentiated in
taste. For e.g. Premium Chips (Normal salty chips) are targeted towards Kids & Old
age group due to their softness, even further it is more specifically targeted based
on taste, like Premium Salted is targeted towards kids and Both Premium salted /
Spicy are targeted toward all age groups.

BANANA CHIPS:
MARKET PLAYERS:

BRANDS

GARDEN

JANTA
OTHERS

PRODUCT

Black Pepper
Salty Yellow
Spicy Red
Black Pepper
Salty Yellow
Spicy Red
Black Pepper
Salty Yellow
Spicy Red

PRICE
RANGE

PACKAGE

Rs. 120 /Per Kg

Packed in Polly Propane Plastic

Pouch with pre-printed Brand
Name & Logo, Item Name &
Package Details and MRP and
Expiry Date

Rs. 100 /Per Kg

Packed in Polly Propane Plastic

Bags With Brand Name and Price
Tags.

Rs. 80 /Per Kg

Packed loose in plastics bags

23

There are no recognized brands in this category. The majority of the banana
chips sector is captured by local manufacturers distributing it loose to the retailers,
who then packs it in 150gm (Rs.12/-), 250gm (Rs. 20/-) & 500gm (Rs. 35/-) in a
normal plastic bags with only price stickers stuck to it. Tomato punch to this
category of chips has been a runaway success.

MARKET LEADERS:
Majority of the market share i.e. 65% is divided amongst the unorganized
sector distributing it locally, Garden being the major player amongst the local
brands with 27% and the remaining is distributed amongst the other local brands
like Raghuvansi, Janta, Chedda, etc.
TARGET AUDIENCE:
Banana Chips like potato chips are targeted towards all age groups; the Spicy
Red Flavor is generally targeted to young and middle age groups whereas the
tomato punch is targeted towards kids and old age groups.

NAMKEENS:
MARKET LEADERS:
BRANDS
FRITO'SLEHAR

PRODUCTS
Alu Bhujia
Bikanari Bhujia
Gujarati Khatta Metha
Navratna Mix
Natiyams
(Moong Dal Masala
Punch)

PRICE RANGE
Rs. 20/Per 200Gm
Rs.20/150Gm

PACKAGES
Packed in Aluminum
vacuumed Packs with
pre-printed
Brand
Name, Item Name,
MRP and Expiry Date

Rs.5/30 Gm

24

GUNJANS

SM FOODSPEPPY
NAMKINS
GARDENS

OTHERS

Alu Bhujia
Bikanari Bhujia
Mix Farsan
Chevada
Spicy / Salty Sev
Bhujia
Chevada
Sev
Nadyadi Chevada
Sev
Chevada
Mix Farsan
Sev
Chevada
Mix Farsan

Rs.42/400 Gm
Rs.20/200 Gm
Rs.3/30 GM

Packed in Aluminum
vacuumed Packs with
pre-printed
Brand
Name

Rs.5/50 Gm

Packed in Aluminum
vacuumed Packs

Rs.60/80
Per Kg

Packed
in
Polly
Propane Packs With
Brand name & MRP.

Rs.60 / Kg

Packed
Packs

In

plastic

There are many other local manufacturers with different varieties of namkeens
ranging from Rs.60 to Rs.80 per kg. Fried Cashews and other dry fruit items are
most costly ranging from Rs.200 to Rs.250 per kg and are generally available loose
as per the consumer's requirements.

MARKET LEADER :
GUNJANs Bhujia is a market leader in this category whereas Frito-Lehar
captures the majority of the market for the small packs ranging from Rs.2 to Rs.10.
Other players like Garden, Raghuvansi, Chedda etc hold a majority of the market
for Chevada & Sev. SM FOODS has been recently introduced Peppy Namkeens.

TARGET AUDIENCE :
Namkeens are generally targeted towards all age groups and the target
differentiated is based on regional taste preference for e.g. Bhujia's are famous in
Rajasthan whereas Chevada's are famous in Gujarat & Fried Cashews is most
preferred in Goa.

25

FUN-FOODS:
MARKET PLAYERS :

BRANDS
FRITOKURKURE
SM FOODS
PEPPY

PRODUCTS
Masala
Twistys
Red Chili Chatka
Peppy
Peppy
Piknik
Peppy
Peppy

Cheeseballs
Ringos
Corn puffs
Hi protein crispies
Minerette

PRICE RANGE
Rs.5/22 Gm
Rs.10/55 Gm
Rs.20/140 Gm
Rs.5/15 Gm
Rs.10/33 Gm

PACKAGES
Packed in Aluminum
vacuumed Packs

Packed in Aluminum
vacuumed Packs

BONKERS

Cheeseballs

Rs.5/30 Gm

Packed in Aluminum
vacuumed Packs

OTHERS

Salty FRAIAMS
Spicy FRAIAMS

Rs.5/75 Gm

Packed in Plastic Bags

There are many local players in this category that deal only in FRAIAMS and
others fried Fun-Foods. Generally Consumers are willing to purchase the branded
ones because they come in many different tastes like Red Chili Chatka, Cheseeballs
etc.
MARKET LEADER :
Since they are very few players in this category, PEPPY Products holds
majorities of the market share especially Cheeseballs & FRAIAMS. Frito's-Kurkure is
new to the market but still is at the second place. Bonkers and others cover a small
segment.

26

 TARGET AUDIENCE :
Fun-Foods is generally targeted to Kids & Youths who do majority of
purchase. Fun-Foods and less preferred by middle age and old age groups. But
Frito's-Kurkure is targeted in general as it can be also categorized under Namkeens.

PACKAGING:

Leading players try to woo consumers with attractive packaging and designs.
Generally all branded companies uses the technology of packing the product with
nitrogen filled aluminum vacuumed pouches, which help to keep the product fresh
for a longer shelf life, but also increases the cost. Smaller manufacturers like
Garden Foods, Raghuvanshi Exports, Janta etc use Polly Propane plastic pouches for
packaging the products.
The pouches are pre-printed with Company Name, Brand Name, Product
Name, Ingredients, Mfg. Date & Best Before Date. MRP is then stamped by a
machine before packing the products.
Generally these packs are provided to the retailers in a series (Lar Form) with
a hanging stand. When the products are to be distributed outside the country or in
a bulk then the pouches are packed in Boxes with Company Name, Item Name &
Brand Name printed on it.

27

 COSTING & PRICING:

Raw material and packaging are the two major cost components. The
organized players follow rigorous quality control of raw material and maintain high
hygiene standards at their manufacturing facilities. This results in a much higher
cost of production, thereby making them price uncompetetive in comparison to
there small scale unorganized counterparts.
Packaging is a major cost, accounting for half the price of the product.
Normal Polly propane plastic bags costs on an average Rs.2 per pack whereas the
aluminum packs costs around Rs.2 to Rs.4.5 approximately based on size. The
Boxes cost around RS.5 (Minimum) to Rs.32 (Maximum) based on size and quality.
Generally manufacturing companies have a profit margin of around 20% to
25%. Local Retailers are given 30% to 35% margin whereas in case where the
products are distributed through distributors the margin of 30% to 35% is
distributed amongst the Distributors, Super Stokers & Retailers.
For e.g. A 55gm pack of Frito's-Kurkure is pricing around Rs.10 of which Rs.3
is distributed amongst Distributors & local Retailers. Out of the remaining Rs.7
Companies profit is around Rs.1.75 to Rs.2. Packaging costs around Rs.2 and
distribution and manufacturing costs around Rs.3 to Rs.3.25.

DISTRIBUTION:
Distribution is also one of the key parameters for expanding market share.
Frito-Lays has the advantage of access to Pepsi's a formidable distribution network
whereas products like Uncle Chipps is retailed through around 600000 outlets
across the country.

28

Generally Companies are having their sales vehicles that are loaded on daily
basis and are distributed to local retailers. Some companies appoint Distributors.
Distributors have to give a proposal with a market research like storage facilities,
infrastructure, retail outlets in area, market leader, types of products available in
the market etc. In some companies the products are delivered to the retailer twice
a week (e.g. Frito India), while in some companies on daily basis (e.g. Garden).
The products are generally sent in Boxes on an average each box contains 80 packs
of 30 gm or 30 packs of 150 gm.
Distributors are solely responsible for the sales in the particular area he is
operating in. Every Distributor should have a specified number (varying from
company-to-company) of minimum shops in his area. Distributors generally have
small vans (rickshaws) and employ salesmen on commission basis who loads the
products from the distributors storage and distributes it amongst the retailers.
Companies nowadays have even started distribution through their websites.
For

e.g.

companies

like

SM

FOODS

have

recently

launched

website

Peppyland.Com, which, apart from being an interactive medium for kids, will also
deliver its brands at their doorstep. It services one-lakh retail counters across the
country by employing a total strength of 300 sales personnel and distributors
nationwide.

CONSUMER'S PROFILE:

Snack foods are impulse purchase products, and there is an element of

indulgence associated with them. It does not figure very high on the shopping list.
A consumer buys it only if it catches his eye at the outlet or is accompanied by a
child who finds potato chips a fun snack. So leading players have stressed on

29

attractive packaging and promotions targeted at children to increase consumption.

As these products are general fun eat, brand loyalties are not strong and consumers
look for novelty and new flavors. There is no notable difference in consumption
pattern across various age groups.
Snacks like Wafers & Chevadas are generally preferred for the daily
consumption whereas fun-foods like Cheeseballs and Twistys are sold more in
schools, Colleges, Railway Platforms and Movie Theatres. Kids generally prefer FunFoods whereas all age groups generally prefer Wafers and other snacks.
Taste varies widely across the regions. For instance in South, banana chips
are extremely popular which do not find many acceptances in other parts of the
country. In east, Paaprichaat is very successful whereas in Mumbai, tomato punch
has been a runaway success.

30

 SAMPLING DESIGN:

TARGET POPULATION

The respondents are classified in two categories i.e., Retailers & Consumers.
Retailers are surveyed to know the actual purchase of the consumers; whereas the
Consumers are surveyed to know their preference. All the respondents were above
the age of 18 and are residents of Mumbai city .

SELECTING A SAMPLING TECHNIQUE

The sampling was done on a random basis whereby the respondents visited and
primary data is collected. The Respondents were selected as per convenience
sampling.

RESEARCH DESIGN:

A research design expresses both the structure of the research problem and plan of
investigation used to obtain empirical evidence on relation s of the problems. The
research design was Exploratory in nature. The Exploratory research is done to
provide insights into, and an understanding of, the problem confronting the
researcher.
As Exploration research serves the other purposes like the area of investigation may
be so new or so vague that a researcher needs to do an exploration just to learn
something about the dilemma facing the manager.
31

The Exploratory research benefits from the use of the following methods:
1. Survey of Experts.
2. Pilot Surveys.
3. Analysis of Data.
4. Qualitative Research.
Secondary Data and the Data from the Questionnaire were used to do the Analysis.
This Exploratory research was done to give the insights about Consumers buying
behavior. The factors affecting their purchase of Ready-To-Eat Snacks & Namkeens

DATA COLLECTION:

The Primary data was collected through questionnaire administered to both

Retailers & Consumers.
The questionnaire method was selected because it translated the information
needed into a set of specific question that the respondents can and will answer. The
questionnaire motivates and encourages the respondents to become involved in the
interview to co-operate, and to complete the interview.

Another advantage of the questionnaire is that it minimizes the response error. The
Secondary Data was collected through Internet, Business journals.

The questionnaire was designed keeping the overall objectives and the information
required. The questionnaire given to Retailers was aimed to finding out the present
32

purchasing pattern for Ready-To-Eat Snacks & Namkeens. The questionnaire

administered to the Consumers was aimed at finding out their preference & factors
affecting their purchase decision for Ready-To-Eat Snacks & Namkeens.

DATA ANALYSIS :

Data Analysis is being done arranging the data in tabular forms. Graphical
Representation and using SPSS Software.

33

 CONSUMERS BUYING BEHAVIOUR ANALYSIS:

RETAILERS POINT OF VIEW
1. Generally preferred as Ready-To-Eat Snacks;
Out of the 50 retailers surveyed 26 of them feels that the consumers generally
prefer Wafers as the best form of Ready-To-Eat Snacks as they are available in
many flavours which gives them a variety to choose. Whereas 15 believe that
Namkeens are usually preferred & 9 has the opinion that Fraiams are mostly
preferred.
most preferred ready-to-eat snacks

Valid

Wafers
Namkeens
Fraiams
Total

Frequency
26
15
9
50

Percent
52.0
30.0
18.0
100.0

Cumulative
Percent
52.0
82.0
100.0

Valid Percent
52.0
30.0
18.0
100.0

most preferred ready-to-eat snacks

Statistics
most preferred ready-to-eat snacks
N
Valid
Missing
Mean
Std. Error of Mean
Median
Mode
Std. Deviation
Minimum
Maximum

50
0
1.6600
.1092
1.0000
1.00
.7722
1.00
3.00

Percent most preferred ready-to-eat snacks

60

50

52

40

30

30

20
18
10
Wafers

Nam keens

Fraiam s

34

2. Consumers Preference of brands vis-a-vis their acceptance;

30

Brand preference * consumer asks for Crosstabulation

Count

branded
Unbranded
anyhing

Total

Count

Brand
preference

consumer asks for

20
21
yes, but
accepts
noccepts
yes they do
anything
anything
6
4
21
10
4
15
6
29
15

consumers asks for a particular

brand

of

snacks.

Of

this

10

1510

21 consumer asks for

19
yes they do ask for
50
yes, but accepts any

Out of the 50 retailers surveyed

20% of the retailer says that the

Total

thing
no accepts anything

branded

Unbranded

anyhing

Brand prefere nce

consumers 60% of them are brand loyal, whereas 40% of them prefer whatever is
available. 42% of consumers do initially asks for brand but they also fall in the
category of the 40% of the consumers who asked for brand i.e. they prefer
whatever is available. Remaining 38% of the consumers are not worried about
brand they just ask for particular product and buy branded if available or anything.

35

3. Consumer's preference of pack vis--vis quantity of packs generally bought;

WHICH SIZE IS PREFERRED * IN WHAT NUMBERS Crosstabula tion
Symmetric Measures
Count
Asymp.
IN WHAT
NUMBERS
a
b
Value
Std. Error
Approx. T
Approx. Sig.
1-2
3-4
5-6
Total
Interval by Interval
Pearson's R
.283
.102
2.042
.047c
WHICH SIZE IS
16
18
18
c
Ordinal by OrdinalPREFERRED
Spearman Correlation
.319
.096
2.328
.024
32
22
3
1
26
N of Valid Cases
50
100
4
2
6
a. Not assuming
the null hypothesis.
Total
44
5
1
50
b. Using the asymptotic standard error assuming the null hypothesis.

c. Based on normal approximation.

30

Out of the 50 retailer surveyed 18 of them

says that the consumers generally prefer

32gms

is

more

preferred

by

the

consumers. Only 6 of the retailer feel that

18

Count

the pack of 16gms i.e. of Rs.10/-, whereas

26 of them are of the opinion that pack of

22

20

IN WHAT NUMBERS

10

1-2

the consumers prefer 100gms pack. Almost

88% of the retailers say that consumers

3
0

3-4

4
2

generally buy 1-2 packs, whereas only

16

10% say that they buy 3-4 packs. Only 2%

WHICH SIZE IS PREFERRED

32

5-6

100

of the retailers say that they buy 5-6 packs. This clearly depicts that Ready-To-Eat
Snacks and Namkeens are generally considered as Time Pass Food and are not
generally stocked by the consumers.

4. Brands generally stored by the consumers;

WHICH BRAND STORED

Valid

RUFFLES
LAYS
HALDIRAM
GARDEN
JANTA
Total

Frequency
13
11
15
6
5
50

Percent
26.0
22.0
30.0
12.0
10.0
100.0

Valid Percent
26.0
22.0
30.0
12.0
10.0
100.0

Cumulative
Percent
26.0
48.0
78.0
90.0
100.0

36

WHICH BRAND STORED

Statistics
WHICH BRAND STORED
N
Valid
50
Missing
0
Mean
2.5800
Median
3.0000
Mode
3.00

Out

of

50

retailers

JANTA
10.0%
RUFFLES
GARDEN

26.0%

12.0%

surveyed

almost 100% of them generally

store Ruffles/Lays. But given a
specific

option

26%

of

them

HALDIRAM

LAYS

30.0%

22.0%

stores Ruffles, 22% stores Lays,

30%

stores

GUNJANs,

12%

stores Garden & 10% stores Janta. GUNJANs amongst all brands has upper hand
due to its brand name and also because they are available in both categories i.e.
Wafers & Namkeens. Amongst the Namkeens GUNJANs is the market leader
whereas Wafers are concerned Ruffles/Lays captures the major chunk of the
market.

5. Consumers preference of Product Categories.

PRODUCTS / CONSUMERS

CHILD

YOUNG

OLD

TOTAL

WAFER

15

28

50

NAMKEENS

39

50

35

50

FRAIAMS

37

Out of the 50 Surveyed Retailers 28 of them feels that old age consumers prefer
Wafers. 15 of them feel that young age people prefer Wafers, whereas 7 feel that
children's prefer Wafers. As far as Namkeens are concerned 39 of them says Young
prefers Namkeens most, Whereas 9 feels old prefer Namkeens and only 2 feels that
children's prefer Namkeens. In case of Fraiams 70% of them agrees that Children's
are more interested in Fraiams i.e. Cheese Balls etc., whereas 18% of young & 12%
of the old age consumers are interested in eating Fraiams as Ready-To-Eat Snacks
& Namkeens.

38

 CONSUMERS POINT OF VIEW

1. Consumers Association of Ready-To-Eat Snacks & Namkeens

Product Association

Valid

Time Pass
Tasty Food
Hunger Quencher
Total

Frequency
21
18
11
50

Percent
42.0
36.0
22.0
100.0

Valid Percent
42.0
36.0
22.0
100.0

Cumulative
Percent
42.0
78.0
100.0

Product Association

Fre que ncy

30

20

21
18

11

10

Std. De v = .78
M e an = 1.80
N = 50.00

0
1.00

1.50

2.00

2.50

3.00

Product Association

Out of 50 consumers surveyed almost 42% of them generally associates Ready-ToEat Snacks & Namkeens with Time Pass. But given a specific option 36% of them
associates it with Tasty Food, 22% as Hunger Quencher.

39

2. Consumers prefer Ready-To-Eat Snacks & Namkeens during

Generally eats during

Valid

Whenever Feel Hungry.

During Movies or while
watching TV
Any Time of the day
Total

Frequency
28

Percent
56.0

Valid Percent
56.0

Cumulative
Percent
56.0

18

36.0

36.0

92.0

4
50

8.0
100.0

8.0
100.0

100.0

Statistics

Generally eats during

Generally eats during

N
Valid
Missing
Mean
Median
Mode

50
0
1.5200
1.0000
1.00

Any Tim e of the day

8.00 / 8.0%

Since Ready-To-Eat Snacks &

During Movies or w hi

Namkeens

36.00 / 36.0%

are

associated

Whenever Feel Hungry

56.00 / 56.0%

with mostly Time Pass they

generally i.e. 36% of time
eaten when the consumer
are

in

entertaining

mood.

Majority of the consumer's

i.e. 56 eats it whenever they feel hungry. Mostly Namkeens are more preferred as
hunger quencher. Only 8% of the consumers are ready to eat Ready-To-Eat Snacks
& Namkeens any time of the day. Fraiams are majorly eaten whenever the
consumers are watching movie or TV. Wafers on other hand are eaten any time of
the day; no specific time or mood is associated with eating of wafer.

40

3. Consumers purchase vis--vis their storing habits

Symmetric Measures

Interval by Interval
Ordinal by Ordinal
N of Valid Cases

Pearson's R
Spearman Correlation

Value
-.312
-.319
50

Asymp.
a
Std. Error
.148
.145

Approx. T
-2.274
-2.329

Approx. Sig.
.027c
.024c

a. Not assuming the null hypothesis.

b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

Stores * how often purchased

30 Crosstabulation
28

Count

Stores

1-2 week
4
28
32

Yes
No

Total

3-4 week
1
6
7

Out of 50 consumer surveyed 78% of

them

do

not

store

Ready-To-Eat

NO OF CONSUMERS

how often purchased

20

on regular
basis
2
5
7

5-6
4
4

and

Remaining

buy

on

22%

regular

basis.

generally

stores

11
39
50
how often purchased

10

1-2 w eek
3-4 w eek

Snacks & Namkeens. Of which 28 of

them buy 1-2 packs, 6 buy 3-4 packs

Total

6
4

4
2

0
Yes

5-6
on regular basis

No

PRODUCT STORED

Ready-To-Eat Snacks & Namkeens. Of which 4 buy 1-2 packs, 1 buys 3-4 packs, 4
buy 5-6 packs and 2 of them buy on regular basis.

41

4. Consumer rating of their Preference

PRODUCT/PREFERENCE

WAFERS

NAMKEENS

FRAIAMS

MOST PREFERENCE

28

23

12

GENERALLY PREFERENCE

18

18

30

50

50

50

LEAST PREFERENE
TOTAL

Out

prefer

18

30

23

FRAIAMS

12
NAMKEENS

50

surveyed

wafers,

23

of

them prefer Namkeens

LEAST PREF

and only 12 of them has

the

28

of

consumers 28 of them

18

WAFERS

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

GENERALLY
PREF
MOST PREF

most
As

Fraiams

as

preferred
far

as

there
option.

the

preference

of

2nd
the

consumer is concerned
18

of

them

Wafers,

prefers

18

Namkeens

prefer
and

30

prefers Fraiams. With reference to the consumers least preference only 4 of the 50
surveyed consumers prefer wafers as their last option; whereas 9 of them has
Namkeens as their last option and 8 of the has Fraiams as their last option. Fraiams
as whole is generally been selected as substitute to Wafers & Namkeens.

42

 MARKETING & ADVERTISING STRATEGIES:

Market Research is been conducted amongst the retailers before launching of
any new product under any categories.
Branded products are generally advertised through TV ads, which are
supported by POPs & other promotional materials hanging at the retail shops.
Companies like Garden Foods have their distribution vehicles painted with the
product name and item names that move around the market, which in a way
is publicity for them. They even organize a snack fair once in a year in
Bandra Reclamation Club and invites other manufacturers to have their stalls
in the fair.
Companies generally provide iron racks to be kept in the retail shops for
which the retailers are given a margin of 4% to 5% extra. Companies like
Frito-India on regular basis send some marketing tips to their distributors.
SM Foods PEPPY has also launched certain promotions for both its dealers
(scratch and win contests) and consumers (Wheels and Wings, a do it
yourself toy) to make its brands more popular.
Companies provide incentive schemes to their distributors on achievements
of certain targets. Some companies even distribute awards for the highest
sales amongst the distributors.
Normally local brands & small manufacturers do little advertising through
sales vans and POPs. Companies like SM Foods, Frito-India etc. uses Print and
Audio-Visual medium for advertising their products.

43

Generally the company launches a new product in the market and then starts
advertising on media and the POPs and other promotional activities back these ads
by the companies.

FACTS & FIGURES:

The Growth rate of Fun-Foods Market is expected to grow by 8% whereas
market for Potato Chips is expected to grow by 9.3% by the end 2006-2007.
Demand of Potato Chips/ Namkeens is expected to reach 790 thousand
Metric Tonnes whereas For Fun-Foods is expected to reach Rs. 50 bn by the
end of 2006-2007.
SM Foods has grown from a sales turnover of Rs 5.96 crore in 1993-94 to Rs
29 crore during 1999-2000. This marks a growth of over 350 per cent over a
period of five years, a growth rate of 77 per cent each year.
SM Foods has earmarked more money for marketing this year and is
spending close to Rs.5 crore on a media blitz.
Uncle Chipps a Delhi based food products company has an annual turnover of
Rs600mn.
Garden Foods has a daily sales turnover of around 8-10 thousand-kg.
Britannia Industries Ltd has introduced a new range of traditional Namkeens
called Britannia Snax in Mumbai. Targeted at the youth segment, the new
range includes seven varieties of traditional Namkeens like `Sagar ki Bhujia'
and `Rajas-thani Alu Bhujia'. The new range is priced between Rs 5 and Rs
20.
44

(SOURCES: Market Indicators & Forecast 2002 edition)

CONCLUSION & RECOMMANDATION:

Ready-to-eat snack food industry is quiet a potential market with consumers
not being brand loyal there is always a scope for new entrants with new innovative
products. Consumers generally like to try some new products emerging in the
markets.
There are no recognized brands in Banana Chips in India, which is a highly
potential market. Products like Popcorns have not yet touched the Indian market
i.e. there are no branded popcorn packs, which can be persevered for few days.
Small-unorganized local manufacturers capture the majority of the market share in
14-bn snacks food industry.
Branded players have attractive packaging to woo the consumers, which in
turn increases their prices in comparison with their regional counter-parts.
Companies keep on coming up with new schemes like a pack of 100Gm free with
2Kg etc. recently companies have also started given freebies along with the product
for e.g. the companies give free Tattoo with the packs to attract Kids.
Due to lack of brand loyalty product reach and availability is most important
for increasing the market share, so Distribution channel plays a major role.
Companies need to encourage their distributors with some incentives or gifts.
Companies should provide proper training on marketing and sales to their
Distributors as well as Sales Force.
Overall ready-to-eat snack food market is estimated at 350,000 ton, of which
the organized market for chips is estimated to be 6500 tons valued at Rs2bn. The
market for branded chips has been growing at a fast pace of around 20 per cent.

45

Today the companies are entering more into Namkeens category as there are very
few players and the Namkeens are of regional tastes.

46

 APPENDIX :

(QUESTIONAIRE FOR RETAILERS)

1. Which of these Ready-To-Eat Snacks & Namkeens is most preferred by

consumers?
Wafers

Namkeens

Fraiams

2. Which of these do the consumers mostly prefer?

Branded Snacks

Unbranded Snacks

Any of These

3. Does the consumers asks for the particular flavour or they prefer any flavour?
Yes, they do ask for particular flavour.
Yes, they do ask for particular flavour but if not available prefer whichever is
available.
No, they accept whichever flavour is available.
4. What is generally preferred by whom?
Wafers preferred by _________________________________________.
Fraiams preferred by _________________________________________.
Namkeens preferred by _________________________________________.
5. Which size of pack do the consumers generally prefer?
16 gms 32 gms

100 gms

500 gms

1kg

6. Which of this brand do you store?

Ruffles

Lays GUNJANs

Garden

Janta

7. What number of packs do the consumers generally buy?

47

 1-2

3-4

5-6

(QUESTIONAIRE FOR CONSUMERS)

1. What do you prefer to have as Ready-To-Eat Snacks?
Wafers

Namkeens

Fraiams

2. With what do you associate Ready-To-Eat Snacks & Namkeens?

Time Pass

Tasty Food Hunger Quencher

Just like Other

3. When do you generally have Ready-To-Eat Snacks & Namkeens?

Whenever Feel Hungry.
During Movies or while watching TV.
Any Time of the day.
4. Do you store Ready-To-Eat Snacks & Namkeens?
Yes

No

5. Rate the products from 1-3 among as per your preference (With 1-most
preferred 3-least Preferred)?
Wafers

Namkeens

Fraiams

6. Which of this brand do you store?

Ruffles

Lays

GUNJANs

Garden

Janta

7. How often do you buy such Ready-To-Eat Snacks & Namkeens?

1-2 a week

3-4 a week

5-6 a week On Regular Basis

48

 BIBLIOGRAPHY:
I thank the following people for providing valuable information & guidance
Mr. Rajeev (Marketing Executive, Garden Foods)
Mr. Rajesh Gandhi (Sales Supervisor, SM FOODS)
Mr. Rajesh Shah (Distributor, Frito-Lays)
Local Retailers
Consumer Respondent

49