Sei sulla pagina 1di 28

Summer Training Report

At

BALAJI WAFER PRIVATE LIMITED


On

SALES ROUTE MAPPING AND SURVEY ABOUT FEASIBILITY OF


LAUNCHING BALAJI WAFERS IN UTTAR PRADESH

Submitted by
Mr. SANDEEP KUMAR

In partial fulfilment of the requirement for the degree of


Master of Business Administration Agri-Business

Supervised By

Mr. SURENDRA KUMAR


Assistant Professor
RGSC, BHU

Institute of Management Studies


Banaras Hindu University
(Rajiv Gandhi South Campus)

Roll Number Session


17430BAB035 2018-19

1|Page
Banaras Hindu University, Varanasi
(Established by Parliament by Notification No. 225 of 1916)

CERTIFICATE

This is to certify that summer internship report entitled “Sales route mapping
and Survey about feasibility of launching Balaji wafers pvt. Ltd. In Uttar
Pradesh” has been prepared under my supervision by Mr. Sandeep Kumar a
student of MBA (Agri-Business) session 2017-19 of Institute of Management
Studies as part of his course curriculum. This report is his original work and up
to the standard expected from an MBA (Agri-Business) student of Management
institute.

I recommend this summer internship project report be forwarded for evaluation.

SUPERVISOR

Date- Mr. Surendra Kumar


Place- Assistant Professor
MBA (Agribusiness)
Rajiv Gandhi South Campus,
Banaras Hindu University

2|Page
Acknowledgement

I take opportunity to express my profound and sincere gratitude to


“BANARAS HINDU UNIVERSITY, VARANASI” which provided me with
excellent implements to achieve most cherished goal in life.
I am extremely thankful to Prof. P.S. Tripathi, Dean/Director, Institute of
Management Studies, Baranas Hindu University and Prof. S.K.Dubey, Course
Coordinator MBA(Agribusiness), Institute of Management Studies, Banaras
Hindu University for providing an excellent academic climate in the institute
which helped me making this project a grand success.
I wish to express our heartfelt thanks and immense gratitude to my respected
advisor , Asst. Professor, Institute of Management Studies, Banaras Hindu
University for his keen interest, valuable guidance, persistence inspiration,
encouragement and moral support though out the course of preparation of this
project. He had always taken out from his busy schedule to listen to us and also
for valuable suggestions.
My cordial and sincere thanks to all my teaching staff for giving me valuable
academic suggestions, encouragement and reliable help during my academic
course and project.
I am thankful to my seniors, friends and classmates for their help, support, and
good spirits.
Words are very inadequate to express my indebtedness and affection to
my parents and all family members who gave me infinite love to go for this
achievement and showed full faith in me even when I was not at my best.

SANDEEP KUMAR
MBA (AB), 3rdSEMSTER

3|Page
DECLARATION

I hereby declare that the work incorporated in this project report entitled
“SALES ROUTE MAPPING AND SURVEY ABOUT FEASIBILITY OF
LAUNCHING BALAJI WAFERS IN CHHATTISGARH”

Submitted for fulfilment of MBA (Agribusiness) 3rd Semester at Institute of


Management Studies, Banaras Hindu University under the kind supervision
of Mr. Surendra Kumar.

Date: (Sandeep Kumar)

4|Page
CONTENTS

Topic Page Number

Introduction 01

Company profile 09

Sales route mapping 10

Objective 14

Research methodology 14

Market survey 15

Consumer survey 21

Findings and conclusion 24

Annexure 26

5|Page
INDUSTRY PROFILE

The Fast Moving Consumer Goods (FMCG) sector is the key contributor of the
Indian economy. This fourth largest sector of Indian economy provides employment to
around 3 million people which accounts for approximately 5% of the total factory
employment in the country. These products are daily consumed by each and every
strata of the society irrespective of social class, income group, age group etc. FMCG
sector is more lucrative because of low penetration levels, well established distribution
network, low operating cost, lower per capita consumption, large consumer base and
simple manufacturing processes for most of products resulting in fairly low capital
investments.

The industry is highly competitive due to presence of multi- national companies,


domestic companies and unorganized sector. A major portion of the market is
captured by unorganized players selling unbranded and unpackaged products. More
than 50 per cent of the total revenues of FMCG companies come from products worth Rs 10
or less1 .This has made the proliferation of localized brands which are offered in loose
form in small towns and rural part where brand awareness is low. In last 10 years
domestic players are giving tough com- petition to multinationals; in fact they have
outstripped many MNCs in growth and market cap. Between 2005- 2014 the profit of
domestic companies increased by 24% against 14% increase of multinational companies.

Urban India accounts for 66% of total FMCG consumption, while rural India
accounts for the remaining 34%. However, rural India accounts for more than 40% of
the consumption in major FMCG categories such as personal care, fabric care and hot
beverages. As per the analysis by ASSOCHAM, companies like Hindustan Unilever
Ltd and Dabur India generate half of their sales from rural India while Colgate Palmolive
India and Marico constitute nearly 37% respectively.

6|Page
About Balaji Wafers Private Limited
Balaji Wafers began as a micro-retail enterprise in 1974, managed by the Virani brothers at
Astron Cinema, Rajkot. By 1982, spurred by the initiative of Virani brothers, this grew to a
home-based manufacturing venture. A decade later, the brothers set up an international
standard automatic plant in Gujarat, with steps to increase capacity and quality. In 2000,
Balaji Wafers installed its first fully automatic agricultural land and give his sons a mere Rs.
20,000, with the advice to go forth and start a business. The road ahead saw Bhikhubhai
plant. By 2014, Balaji Wafers captured a 70% market share in snacks market. Today, the
company employs more than 1800 personnel in their Rajkot and Valsad manufacturing
facilities. Balaji has the capacity to manufacture 100,000 kg of potato wafers, along with
500,000 kg of savouries per day.

History:-

Entrepreneurship was thrust on the Virani brothers at a young age, when drought forced their
father to sell ancestral, Chandubhai and Kanubhai fail at their first venture of fertilizers and
then take up working at a boarding mess in Rajkot. Two years later, the brothers got
associated with Astron Cinema and performed all necessary jobs with immense sincerity.
This led the owner to offer them a profit sharing deal for running the canteen. The Viranis
initially bought pre-packaged snacks for patrons. Subsequently, the brothers got into sourcing
unpackaged wafers and finally started making them themself at their residence.

This was their first own production and soon, the brothers decided to sell their product
“Balaji Wafers” not just to the Astron visitors, but also to customers outside. This was easier
said than done, due to a harrowing experience of half-eaten packets returned by shopkeepers
and soiled notes being paid. However, the Viranis persisted and ultimately created a name
that was so deeply respected, that it nearly wiped off all other competition. The moped, which
carried the wafers to the market, soon gave way to an auto and then to a tempo taking
financial support through a nationalized bank.

Realizing that the key to constant success and profits was quality, the brothers ensured that if
cooks failed to show up, he personally made the wafers and insisted on the best quality raw
material to make Balaji wafers a premium product. Taking inspiration from the bittersweet
experiences in life, the Viranis went on to create different snacks that were then sold under
the same brand name of ‘BALAJI’.

The key elements behind the phenomenal success of Balaji are the strong fundamental values
of Virani brothers, which chiefly include “Trust, Passion and Steady Hard Work!”

7|Page
Market share –
Balaji wafer’s share in chips and namkeen market grew to 13.7% in 2012, from 9.5% in 2008
according to Euro monitor. Balaji dominates in the western market with a share of 71%.
Covering areas of Gujarat, Maharashtra, and Goa. In its home state Gujarat, it has a market
share of 90%. Balaji has newly extended its arms in Indore (MP) with its new plant and In
Uttar Pradesh. Thus penetrating in Northern and Central India markets.

Achievements:-

 Economic Time recognized Balaji Group as ‘Sultan of Wafers’.


 Balaji Group is also a member of Snacks Food Association.
 Known as one of the best Wafer producer in India.

About internship project:-


Our summer internship project is a part of MBA (Agribusiness) course curriculum which
starts from May till June, as a process our internship was confirmed by Mr. Jay Sachdev sir
and we were initially deported in Varanasi for doing sales route mapping and market survey
which started from 2/05/2018. There in Varanasi we were introduced to Mr. Vinayak
Prakash the consultant from Ernst & Young and Mr. Sanjeev Shukla sir ASM of Balaji
wafers UP region, they guided us with the working of sales route mapping and its usefulness
also helped us providing useful market information. Later after training in Varanasi, we were
moved to Lucknow for route mapping of dealer Mr. Pawan Jaiswal were we completed the
mapping for 6 beats. After completing dealers mapping, I was sent to Faizabad in June for
survey of market, margins, competitors, margins, distribution channels, promotional
strategies, Consumer tastes and preferences.

Daily work updated of route mapping were sent to following mail ids. Provided to us:-

Reporting@balajiwafers.com, psanjeevshukla@gmail.com, vishal.tiwari@in.ey.com, and


vinayak.Prakash@in.ey.com

From this internship following things were learnt:-

 Sales route mapping, importance


 Dealer management
 Competitors survey
 Market scenario
 Consumers preferences
 Margins offered by different brands of chips and namkeens.
 Distribution system

8|Page
Company Profile

Type Private limited

Founded in 1976

Headquaters Rajkot, Gujrat

Key People Bikhubhai, Chandubhai & Kanubhai


Virani

Products Wafers, Namkeens

Revenue Rupees 1,500 Crores (US $ 230 million)

Number of employees 2500

Tag line Any time crunchy, all time fresh.

Website www.balajiwafers.com

9|Page
Balaji has manufacturing plants in Rajkot, Valsad and in Indore with overall capacity of
6,200 Kg per hour.

Sales route mapping


(Guided by – Mr. Vinayak Prakash, Consultant, EY)

Route planning means computing the most cost-effective route involving several nodes or
stopovers by minimizing the distance travelled and/or time taken. The aim is to working out
of the best route for cost effective distribution that will minimise any distances travelled with
minimal stopovers along the way.

Features:-

 Visualization of depot/warehouse and customers on an interactive map


 Designed to be configurable to apply following types of data
o Vehicle - Type, Capacity
o Customer - Location, Order, Priority Service Time
o Earliest departure time (which takes into considering the loading time)
o Total working time - duty hours
 Additionally, the application respects all constraints of the organization’s distribution
model, for example:
o Multi-trip distribution
o Usage of TP transportation
o Cross-dock distribution

 The application provides highly detailed reports and analysis for route planning taking
into account many variables
 Last minute changes with route editing options
 Optimized delivery route for backend analysis

Benefits of sales route planning:-

 Improved customer services


 Significant reduction in mileage driven and/or working hours in vehicle use (upto
15% in rural areas and 30% in urban areas)
 Flexible route planning based on new requirements
 Improved utilization of vehicles and resources
 Fast and increased return on investment - Reduced cost per delivery on average

 Tracks overall business efficiency with planned vs. actual reports


 Get best delivery plan to:
o Optimize vehicle utilization

10 | P a g e
o Minimize total kilometers travelled
o Increase number of deliveries within a given time window
o Quickly accommodate last minute changes

Beat Plan (also referred as ‘Permanent Journey Plan’) is a day level route plan made for field
sales/marketing personnel to make visits to a number of stores at a pre-defined frequency. A
Beat Plan defines whom to visit, when to visit, based on company’s priorities on stores
category/segment. These visits can be made for the purpose of sales order collection, visual
merchandising, etc.

Beat Plans are planned in advance, mostly for a month, to ensure no deviation is there and
each of stores gets required visits from company representatives.

Standards considered during beat planning of Balaji wafers:-

 Per beat counters 50.


 Area covered should be within the range of 5-6 Kms from the Godown of dealer.
 Small pickup vehicle is considered like TATA ACE, EXCEL which are able to carry
load of 30-35 boxes.
 Fixed and variable costs are consider during planning and aim is there to maximize
the revenue and to keep the business for dealer towards profit.
 Break-even point where revenue equals investment is tried to achieve in minimum
time period of running business.

11 | P a g e
12 | P a g e
Excel sheet which was filled during route mapping

13 | P a g e
OBJECTIVES
 To find out competitors, their margins and marketing strategies in
Faizabad region.
 To find consumers taste and type preferences.
 To find out way to launch balaji wafers in Uttar Pradesh state.

RESEARCH METHODOLOGY

Research Design: Descriptive


Research Tool: Questionnaire method
Sampling Technique: Convenient sampling
Sampling size: 40 retailers, 90 consumers, 9 Dealers
Data collection:-
Primary data – Questionnaires and interviews
Secondary data – Articles and internet
Sampling area – Uttar Pradesh, Faizabad Masodha region
Data analysis – Through Charts and graphs
Reference Period- 1st May, 2018 to 28th June,2018

14 | P a g e
MARKET SURVEY

Competitors of Balaji wafers pvt. Ltd.

Haldiram’s:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Aloo Bhujia 3.60 5.00 1.40 20
Panchrattan 7.50 10 2.50 25
Khatta meetha 16 20 4 85
Fingers 3.80 5 1.20 25
Takatak 11.50 15 3.50 71
Fatafat bhel 3.70 5 1.30 25
Nut craker 7.90 10 2.10 42
Moong dal 3.60 5 1.40 18
** On an average Haldiram’s offers a margin of 20-25% with additional offers

Pepsico india:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Lays 4.50 5 0.5 15

Lays cream and 18.02 20 1.98 52


onion
Lays maxx 31.25 35 3.75 58

Uncle chips 16.80 20 3.20 60


(Spicy)
Uncle Chips 18.02 20 1.98 62
(Plain)
Kurkure 17.82 20 2.18 94
Naughty tomato
Kurkure masala 8.92 10 1.08 50
munch
Kurkure 8.90 10 1.10 45
Multigrain

15 | P a g e
Kurkure 4.3 5 0.70 18
Triangles
Kurkure Moong 9 10 1 40
dal
Kurkure Nut 18 20 2 70
craker
Kurkure 31.50 35 3.50 175
Navratan mix
**On an average Pepsico offers a margin of 8-10% to retailers on all its products.

Craxx:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Natkhat masala 4 5 1 23
Moong dal 4 5 1 18
Chees balls 4 5 1 21
Natkhat classic 4 5 1 26
**Craxx offers margin of 20% to retailers on all its products.

Cream n’ onion 16.40 20 3.60 60


**Akash namkeen is offering margin from 20-25% as this brand in newly launching in UP.

Mahesh (Lucknow):-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Gatta gat 4 5 1 30
Roasted chana 4 5 1 20
Salted peanuts 4 5 1 20
Masala pasta 3.80 5 1.20 25
**Local competitors like Mahesh offers margin of 20-25% to retailers.

Khushal:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Jeera papad 3.50 5 1.50 18

16 | P a g e
ITC Bingo:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Mad angles 8.20 10 1.80 40
Yumitos 16.4 20 3.60 60
Tedhe Medhe 8.20 10 1.80 40
** Margin offerd by Bingo is 18% for all its products.

Bikano:-
Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Chatar matar 41 50 9 200
Diet chiwda 16.40 20 3.60 90
Aloo bhujia 72.98 89 16.02 400
Khatta meetha 182.04 222 39.96 1000
Navratan 72.98 89 16.02 400
mixture
Moong dal 41 50 9 200
Peanut 41 50 9 200
Matar Masala 41 50 9 200
tasty 182.04 222 39.96 1000
**Bikano offers a margin of 18-20% to the retailers on all its products.

Member’s Mark & Kanha:-


Product Retailer’s price MRP (Rs.) Margin Weight in
(Rs.) Grams
Aloo bhujia 155 210 55 1000
(MM)
Aloo bhujia 175 230 55 1000
(Kanha)
Khatta Metha 6.7 10 3.3 44
(MM)
Moong dal 40 48 8 200
(MM)
Nut craker 3.5 5 1.5 20
(MM)
Diet chiwda 24.51 30 5.49 155
(MM)
**These are brand of Best price (Walmart) offers margin of 25-30% to retailers.

17 | P a g e
Local competitors in Faizabad:-
Product Retailer’s MRP (Rs.) Margin Weight in
price (Rs.) Grams

Barkha(moongdal) 3.5 5 1.5 35


ChakhoJi(Namkeen) 3.5 5 1.5 35
Vinayak(Namkeen) 3 5 2 25
Maruti(Matarmasala) 3.5 5 1.5 35
My Popcorn 3.5 5 1.5 25
Fmaly(Kalori)Moongdal 3 5 2 25

Other Competitors:-
 Parle’s
 Too yum
 Yellow Daimond
 Haldiram Bhujiawala
 Bikaji namkeen
 Haanji Namkeen (Varanasi)
 Good morning (Varanasi)
 Shree balaji chips

**Taxes on Namkeen and wafers are 6% SGST and 6% CGST.

18 | P a g e
Marketing strategies by competitors:-

The whole market can be divided into two type the organised market where branded products
are supplied through proper channels and taxes and Unorganised market where local brands
are there who supply there products and does not follow any proper channel.

Strategies by Organised brands –

 They offer good margin to retailers and distributers, retailer’s margin range from 15-
30 % per packet. However big brands like lays, kurkure don’t give high margin but
due to good market awareness they hold good position.
 Selling extra packet per line was adopted by Haldiram’s in which they were giving
one extra packet with per line.
 Good marketing through mass media, hording boards. Also different promotional
strategies are adopted like providing sign. Boards to retailers and wholesalers.
 Credit system is followed by majority of Wholesalers, Dealers and distributors in the
region. Which are paid after all the supply has been sold out.
 Big brands like haldiram’s, PepsiCo, bikano, Bingo etc. sell their products also
through Big bazar, Best price, Spencer’s, etc. shopping marts.

Strategies by Unorganised brands –

 Their primary focus is on sales thus they offer huge margins to retailers.
 Sell their products through Wholesalers and Supers. Thus mostly Push strategy is
adopted.
 Decreasing quality and increasing quantity to attract consumer is done.

19 | P a g e
Retailer Survey

What encourages you to sale a particular brand?

Brand Margin offerd Costumer demand Service offerd by company

14%

48%
18%

20%

20 | P a g e
DIFFERENT BRANDS AVAILABLE IN
SHOPS
Haldiram's Barkha Pepsico Craxx Vinayak Bingo Maruti Others

100
90
80
70
60
50
40
30
20
10
0

Consumer Survey

Most Preferred namkeen brand ?

Family
Kalori 13% Haldiram's
27%
Kurkure
20%
Barkha7%

Craxx Bikano
18% 15%

21 | P a g e
Most Preferred Chips Brand ?

Craxx
14%
Lays, Uncle chips
30%
Takatak
7%

Akash
7%

Bingo
16% Kurkure
26%

What encourages you to buy particular brand?

Brand
13%

Quality
40%

Prize
28%

Advertisment
19%

22 | P a g e
WHAT PRICE RANGE DO YOU MOSTLY BUY?

17%

30%
Rs.5
Family pack
Rs.10
29% Rs.20

24%

23 | P a g e
Findings and Conclusion

 Haldiram’s and Pepsico are two biggest competitors of Balaji wafers in Uttar Pradesh
region, While there are other emerging brands also which will give competition to
balaji wafers like Craxx, Bikaji etc.
 Retailers are mostly encouraged by brand power and margin offered to them. It was
found in research that 14% retailers were encouraged by brand of the product and
18% by the margin offered to them.
 In consumer survey it was found that about 27% consumer chose Haldiram’s as best
brand in Namkeen followed by Kurkure (20%), Family(13%). In Chips, it was found
that 30% consumers prefer Uncle Chips.
 Among flavour Aloo bhujia, Moong dal, Kurkure were in top and are liked by
majority of consumers.
 Sales route mapping is an important tool for managing and optimising sales
operations thus was a major learning.
 Among different price range products 30% consumers prefer products of Rs 20, 29%
consumers prefer family pack and 24% consumers prefer products of Rs 10.
 Market in Uttar Pradesh region is very big with competition. Also which opens
opportunities for Balaji wafers too which will prove to be beneficial for the company.
 There is requirement of advertisement as most of the population is not aware of the
brand. Also with advertisement more and more consumer will be attracted towards
Balaji wafers.

24 | P a g e
LIMITATIONS

1. Dealers were not willing to reveal all the information regarding margins and income.
2. Time constraints.
3. Field work was tedious and time taking.

25 | P a g e
ANNEXURE

SURVEY QUESTIONS FOR RETAILERS:-

1. Name of shop ………………………………………………………...................

2. Address
…………………………………………………………………………………………………
………………………………………..

3. Contact number ………………………………………………………..

4. Brands available in shops :-

NAMKEENS CHIPS
 Haldiram’s  Uncle chips, Lays
 Bickano  Kurkure
 Kurkure  Aakash
 Aakash namkeen  Bingo
 Crax  Crax
 Others  Parle
………………………………………..  Too Yum
 Others
……………………………………….. ……………………………………
.
………………………………………
… ……………………………………
.

5. Different range of packets available - Rs. 5/ 10/ 20/ 30/ others ……………………..
6. Most preferred taste variety bought by costumers –
• Namkeens -
 Khatta meetha Salted Peanuts
 Punjabi tadka Navratna
 Aaloo bhujia Soya sticks
 Moong dal Others
……………………………………………………………………

• Chips –

 Salted chips
 Kurkure -
…………………………………………………………………………………………………
………………………
 Corn puffs
 Masala munch

26 | P a g e
 Banana chips
 Tomato flavour
 Others
…………………………………………………………………………………………………
…………………………….
7. Margins offered by different brands –
 Haldiram’s - / per packet, / per line
 Kurkure - / per packet, / per line
 Bikano - / per packet, /per line
 Lays, Uncle chips - / per packet, /per line
 Crax - /per packet, / per line
 Bingo - / per packet, / per line
 Aakash - /per packet, / per line
 Others - ………………………….. - /per packet, / per line
8. What encourages you to sell particular brand –
 Brand advertisement
 Margin offered
 Costumer demand
 Services offered
 Other ……………………………

SURVEY QUESTIONS FOR CONSUMERS:-

1. Name - ……………………………………………………………… Age -


………………………………………..
2. Most preferred brand in chips and Namkeens –
 Haldiram’s
 Aakash
 Bickano
 Lays, Uncle chips
 Kurkure
 Craxx
 Bingo
 Others -
…………………………………………………………………………………………
……………
3. Most preferred taste / flavour you like –
Namkeen -
………………………………………………………………………………………….
Chips -
…………………………………………………………………………………………………
4. You buy most frequently which packets? Rs. 5/ 10/ 20/ 30/ Family packs.
5. What encourages you to buy particular brand of chips or namkeen?
 Brand

27 | P a g e
 Advertisement
 Quality
 Quantity
 Availability
 Price
 Other …………………………………………

28 | P a g e

Potrebbero piacerti anche