A

SUMMER INTERNSHIP PROJECT

ON
“TO ANALYZE RETAILERS EXPERIENCE OF SELLING SCHMITTEN AS A
BRAND OF CHOCOLATE”

Submitted to
S.R. LUTHRA INSTITUTE OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

In
Gujarat Technological University
UNDER THE GUIDANCE OF

Faculty Guide: Company Guide:

Mr. Harshesh Patel Mr. Alpesh Balar
Assistant Professor Executive marketing
(Rajhans Nutriments pvt.ltd)

Submitted by
Ms. Ami Patel [Batch No. 2014-16, Enrollment No.148050592044]

MBA SEMESTER III

S.R. LUTHRA INSTITUTE OF MANAGEMENT – 805

MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
August, 2015
 Student’s Declaration

I, Ms. Ami Patel, hereby declare that the report for Summer Internship Project
entitled “To Analyze Retailers Experience of Selling Schmitten as a Brand
of Chocolate” is a result of my own work and my indebtedness to other work
publications, references, if any, have been duly acknowledged.

Place: Surat

Date: ____________

___________________
(Ami Patel)
 Institute’s Certificate

Certified that this Summer Internship Project Report Titled “To analyze
retailers’ experience of selling Schmitten as a brand of chocolate” is the
bonafide work of Ms. Ami Patel (Enrollment No.148050592044), who has
carried out the research under my supervision. I also certify further, that to the
best of my knowledge the work reported here in does not form part of any
other project report or dissertation on the basis of which a degree or award
was conferred on an earlier occasion on this or any other candidate.

Place: Surat
Date: ________________

___________________
(Harshesh Patel)
Asst. Professor

___________________
(J. M. Kapadia)
Director
 PREFACE
I received my training at Rajhans (Desai and Jain) Group, Surat as a
requirement of MBA curriculum. This training has provided me a clear insight
of the application of theoretical knowledge into practical scenario. To target
the respondent, it is imperative to understand their mind set and preference
toward the selling Schmitten.

The Research topic is to analyze retailers’ experience of selling Schmitten as

a brand of chocolate.

From 8 June 2015 to 18 July 2015 this Research has been conducted by me.

Objectives of the study are: to analyze retailer experience of selling Schmitten

as a brand of chocolate, to do comparative study of Schmitten with other
brands of chocolates, to know retailer’s preference of selling brands of
chocolates, to know reasons why retailers are not selling Schmitten as a
brand of chocolate.

In this research first the analysis of the confectionary industry at global,

National, and state level Scenario, then PESTLE analysis done of
confectionary industry. Secondly, Micro analysis related to company and
organization structure has been done. Literature review has been done
regarding Chocolates, bands, retailer, etc…

Conclusion of the study revealed that most of the retailers selling experience
are neutral for selling schmitten brand; most of the respondents under study
are selling Cadbury in their store, while some of the respondents are not
selling schmitten because of some issues attached with the product.
 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible
without the kind support and help of many individuals and organizations. I
would like to extend my sincere thanks to all of them.

I am highly indebted to Mr. Alpesh Balar for his guidance and constant
supervision as well as for providing necessary information regarding the
project & also for his support in completing the project.

I would like to express my gratitude towards Mr. Harshesh Patel, mentor at

institute & member of Rajhans group for their kind co-operation and
encouragement which help me in completion of this project.

I would like to express my special gratitude and thanks to industry persons for
giving me such attention and time.

My thanks and appreciations also go to my friends in developing the project

and people who have willingly helped me out with their abilities.
 EXECUTIVE SUMMARY
This research is focused on “To Analyze Retailers Experience of Selling
Schmitten As a Brand of Chocolate.” It also helps to know what are the
factors which affect the retailers who are selling Schmitten and how is their
experience for selling schmitten brand to their customers.

Introduction covers the theoretical aspects on schmitten brand and

confectionery goods. It also covers various brands of chocolate, top selling
brands, sales forecast and also brief about history of confectionery industry.

The project includes the overview of confectionary industry is delicacies or

sweetmeats that have sugar as a principal ingredient, combined with coloring
matter and flavoring and often with fruit or nuts. The global confectionery
industry revenue is estimated to reach $176 billion by 2018 with a CAGR of
3.0% over the next five years (2013-2018). Confectionery in India is broadly
classified as chocolate based confectionery, sugar based confectionery and
gum based confectionery. Confectionery sector in India is well consolidated
with top players holding a major share of the market; local subsidiaries of
global confectioners are among the leading players in India. Large players
have a significant presence in chocolate confectionery market while smaller
players primarily operate at a regional level and have sizeable base in sugar-
based confectionery market

It includes the overview of the company. The Rajhans group of companies

was started in 1990. This chapter also the market Poisson like Over the past
year they have captured 2% of the luxury chocolate segment The sales have
grown by more than 50% over the past quarter.

It includes literature reviews which are referred for the research study.
Literature reviews are the previous study conducted by the other researcher.

It further describes the research methodology that researcher had used for
the purpose of this research. This includes problem statement, research
objectives and research design. The research design has used is descriptive
research design and non-probabilistic convenience sampling method has
used for the research.
Data collection method used was personal survey method in which
questionnaire is used as data collection tool. The sample size was 100
respondents i.e. retailers of surat. Further project includes finding, conclusion
and suggestion on the basis of data analysis.

For data analysis frequency distribution and chi-square independence test

has used for knowing the relationship between various variables.

Findings of the study revealed that most of the retailers are aware of
schmitten but some of them are not selling schmitten because of it packaging,
price, margin structure, distribution network etc. Conclusion of the study
revealed that most of the retailers selling experience are neutral for selling
schmitten brand, most of the respondents under study are selling Cadbury in
their store, while some of the respondents are not selling schmitten because
of some issues attached with the product.
 TABLE OF CONTENTS

Sr. Particulars Page

No. No.
1. Introduction 1
2. Confectionary Industry Profile 5
a. Global 6
b. National 7
c. State 9
d. Current trends 10
e. PESTEL 11
f. Major Players 13
g. Major Offerings 13
3. Rajhans (Desai & Jain Group) Profile 15
a. Company Profile 16
b. Organogram 19
c. Divisions/ Departments 19
d. SWOT 23
e. Market Position 24
4. Review of Literature 26
5. Research Methodology 30
a. Problem Statement 30
b. Research Objective 30
c. Research Design 30
i. Type of Design
d. Sampling Plan 30
e. Sources of Data 31
f. Data Collection Method 31
g. Data Collection Tool 31
h. Hypothesis Testing 31
i. Tools for Analysis 32
j. Limitations of the Study 32
6. Data Analysis & Interpretations 33
7 Findings 51
8 Conclusion 53
9 Recommendations 54
 Bibliography
 Annexure
 LIST OF TABLE

Sr. Table Page

Particulars
No. No. No.

1 Major Players 2.1 13

2 Milestones 3.1 23

3 Tenure of Store 6.1 33

4 Brands of chocolates 6.2 34

5 Have you ever sold Schmitten chocolate 6.3 35

6 Experience of selling Schmitten chocolate 6.4 36

7 Comparison with the available brands of chocolate 6.5 37

8 Preference to sell among customer 6.6 38

9 Over all experience of selling Schmitten 6.7 39

10 associated with the Schmitten brand 6.8 40

11 sell other product of Schmitten 6.9 41

12 recommend others to sell Schmitten 6.10 42

13 (A) Scope of improvement 43

6.11
(B) Area of improvement 44

14 Reasons for not sold Schmitten yet 6.12 45

15 If issue solved, will you sell Schmitten? 6.13 46

16 Executive from Schmitten 6.14 47

17 Observed and Expected Frequency 6.15 48

18 Observed N and Expected N Frequency 6.16 48

19 Chi- Square Test 6.17 48

20 Observed N and Expected N Frequency 6.18 49

21 Area 6.19 49

22 Chi- Square Test 6.20 49

23 Observed and Expected Frequency 6.21 50

24 Store 6.22 50

25 Chi- Square Test 6.23 50

 LIST OF FIGURE

Sr. Figure Page

Particulars
No. no. no.

1 Top chocolate confectioneries in India 1.1 2

2 Top chocolate brands 1.2 3

3 Top selling chocolate type 1.3 3

4 Most popular categories 1.4 4

5 Sales forecast of most popular categories 1.5 4

6 Schmitten chocolate photos 3.1 20

7 Brand Ambassador of Schmitten Chocolate 3.2 21

8 Variety of Schmitten chocolate 3.3 22

9 Varieties of Hoppits 3.4 22

10 Schmitten chocolate today 3.5 24

11 Tenure of Store 6.1 33

12 Brands of chocolates 6.2 34

13 Have you ever sold Schmitten chocolate 6.3 35

14 Experience of selling Schmitten chocolate 6.4 36

15 Comparison with the available brands of chocolate 6.5 37

16 Preference to sell among customer 6.6 38

17 Over all experience of selling Schmitten 6.7 39

18 associated with the Schmitten brand 6.8 40

19 sell other product of Schmitten 6.9 41

20 recommend others to sell Schmitten 6.10 42

21 (A) Scope of improvement 43

6.11
(B) Area of improvement 44

22 Reasons for not sold Schmitten yet 6.12 45

23 If issue solved, will you sell Schmitten? 6.13 46

24 Executive from Schmitten 6.14 47

CHAPTER
1
INTRODUCTION
INTRODUCTION

A chocolate fantasy, like never before, Schmitten has been crafted with
immense care. It’s not just about the world-class Swiss technology or the
consistent taste. It’s not even about the unmatched quality that every tablet of
Schmitten comes with. It’s all about the personal touch that each bite, each
tablet of your favorite Schmitten offers.

An experienced & inventive team works on making the chocolate a delight for
your senses. Not one stone is left unturned when it comes to the machinery
used, maintaining the process parameters, the raw materials and finally, the
classy packaging.

All this, to ensure that each Schmitten makes you want to immerse yourself
into a fantasy world of your own.

Higher disposable incomes and a taste for richer chocolates are ensuring a
steady growth of the premium chocolate market in India. At 10 per cent of the
overall Rs 5,000-crore chocolate market, the premium segment is small. Yet,
it is growing at a steady 30-40 per cent per annum, according to industry
estimates. Consumption is likely to grow by 25 per cent annually and cross Rs
7,500 crore by 2017. Premium refers to those products whose average price
is Rs 100 and above. Quite a few chocolates fall in this segment, including
brands such as Lindt, Ferrero, Godiva, Mars, etc. Mostly imported and
distributed in the country, some of them such as Ferrero are going a step
further, by setting up local manufacturing facilities. Ferrero recently
announced it was setting up its second manufacturing plant in the country
through its wholly-owned subsidiary, Imsofer Manufacturing. The unit would
be located in Maharashtra, near its first one, which is near Pune. Moreover
during festivals which are an occasion when sales of premium chocolates are
seeing a spurt, mainly because of their ability to be fine gifting options. Also,
premium chocolate makers are keen to initiate more consumers into the habit
of having their products.
In 2014, India’s chocolates sales are estimated to have crossed the Rs10,000
crore ($1.6 billion) mark, according to a report by market analyst Euromonitor,
growing a solid 24% over the preceding year. And the leader of India’s
chocolate pack, by far, was Mondelez India (as Cadbury India is now called)

Figure No: 1.1 Top chocolate confectioneries in India

with a 55.5% share of the market. Nestle India, its nearest rival, recorded the
fastest decline in marketshare. From 19% in 2013, its share fell to 17% in
2014 on the back of slow sales of its key brands, such as Munch and Bar
One.

Favorites brands:

Almost half of Mondelez India’s brands—including Dairy Milk, 5 Star, Gems,

Perk and Toblerone—were among the 15 highest selling chocolates in 2014.
Much of that was because these brands are being sold in smaller units, priced
at just Rs5 ($0.08), which helps them reach deeper into rural areas and Tier-
III cities, where affordability is key. At the top of the economic pyramid,
premium chocolates—such as Lindt and Mars—available in urban retail stores
and supermarkets also drove growth in 2014. But the demand for premium
chocolates is not dominated by children, instead it’s a particularly adult
craving. And chocolate companies are taking this growing market seriously.
Both Mondelez and Nestle sell Toblerone and Alpino, respectively, in smaller
 Figure No: 1.2 top chocolate brands

packs to encourage new customers to try their chocolates.

Dark, White or Milk

Despite all the newfound love for expensive foreign brands, the plain milk
chocolate tablets remain the undisputed king in India with a value share of
60%. Meanwhile, there’s a serious fight underway between white and dark
chocolates, which the latter seems to be winning currently. And right on cue,
both Mondelez and Nestle launched new dark chocolates in the last two
years.
 Figure No: 1.3 Top selling Chocolate types

In India’s booming chocolate market aren’t black, white or milk. Instead,

chocolates with toys (such as Kinder Joy) have caught the attention of young
Indian consumers. From sales of only around Rs66 crore in 2009, the number
has grown 15 times to Rs1, 007.5 crore in 2014. And these chocolates now

Figure No: 1.4 Most Popular categories

comprise the third biggest segment in value terms. The overall market,
however, is dominated by chocolate tablets and count lines, which are boxes
of bars packed and supplied to retailers to be sold individually.

Delicious forecast

Out of the three most popular categories in 2014, count lines are expected to
be the fastest growing segment in the next few years—with a 87% growth in
value by 2019. Boxed assortments and chocolates with toys will follow, with a

Figure No: 1.5Sales forecast of most popular categories

growth by over 68% between 2014 and 2019. Still, with Rs6,905.98 crore in
sales, tablets with continue to dominate India’s chocolate market in terms of
value.

Confectionery, delicacies or sweetmeats that have sugar as a principal

ingredient, combined with coloring matter and flavoring and often with fruit or
nuts. In the United States it is usually called candy, in Great Britain, sweets or
boiled sweets. Non-chocolate candy is roughly divided into two classes, hard
and soft; the distinction is based on the fact that sugar when boiled passes
through definite stages during the process of crystallization. Fondant, or sugar
cooked to the soft stage, is the basis of most fancy candies, such as
chocolate creams.

Sweetmeats, long known in the Middle East and Asia and to the ancient
Egyptians, were at first preserved or candied fruits, probably made with
honey. One of the earliest functions of candy was to disguise unpleasant
medicine, and prior to the 14th cent. Confections were sold chiefly by
physicians. Medieval physicians often used for this purpose sugarplate, a
sweetmeat made of gum dragon, white sugar, and rosewater, beaten into a
paste. One of the earliest confections still surviving is marzipan, known
throughout Europe; it is made of almonds or other nuts, pounded to a paste
and blended with sugar and white of egg. In the Middle Ages it was
sometimes molded into fancy shapes and stamped with epigrams.

Sugarplums, made of boiled sugar, were known in England in the 17th cent.,
but it was not until the 19th cent. that candymaking became extensive. The
display of British boiled sweets at the national exhibition of 1851 stimulated
manufacture in other countries, especially in France. In the United States in
the middle of the 19th century about 380 small factories were making
lozenges, jujube paste, and stick candy, but most fine candy was imported.
With the development of modern machinery and the increasing abundance of
sugar, confectionery making became an important industry. In 2001,
estimated retail sales of chocolate, other candy, and gum in the United States
had reached $24 billion, and more 1,400 new items of candy were introduced.
 CHAPTER
2
CONFECTIONARY
INDUSTRY PROFILE
CONFECTIONARY INDUSTRY AT GLOBAL LEVEL

The global confectionery industry revenue is estimated to reach $176 billion

by 2018 with a CAGR of 3.0% over the next five years (2013-2018). Rising
disposable income, increasing awareness of health and wellness, higher
population, and consumer spending are the major industry drivers.

Lucintel, a leading global management consulting and market research firm,

has analyzed the global confectionery industry and presents its findings in
“Global Confectionery Industry 2013-2018: Trend, Profit, and Forecast
Analysis.” The industry consists of sales of chocolate confectionery, sugar
confectionery, gum, cereal bars, and other confectionery. Europe has the
highest regional share among all the regions. Asia Pacific (APAC) emerged
as the most growth potential region over 2007-2012, driven by growing
population and GDP growth in developing nations. A combination of factors
such as rising population and consumer spending affects market dynamics
significantly.

As per the study, introduction of confectionery categories and new product

variants of different tastes are ensuring higher acceptability of these products.
Increasing urbanization, hectic lifestyles, and more women in the workforce
globally are increasing the demand for confectionery food. The biggest
challenges for the industry include health issues, as well as inflation,
employment rate, increasing government regulation, and changing consumer
preferences, among others. The chocolate segment is forecast to witness the
highest growth during 2013-2018. Special occasions and celebrations are
expected to increase confectionery sales.

This study provides an overview of the global confectionery industry, tracking

three market segments of that industry in four geographic regions. Thus, a
total of 12 segments of the global confectionery industry are tracked. The
report studies the manufacturers of chocolate confectionery, sugar
confectionery, and gum, cereal bars and other confectionery. It provides a
five-year annual trend and forecast analysis that highlights market size, profit,
and cost structure as well as opportunities for the regions of North America,
Europe, APAC, and Rest of the World. This comprehensive guide from
Lucintel provides readers with valuable information and the tools needed to
successfully drive critical business decisions with a thorough understanding of
the market's potential. This report will save Lucintel clients hundreds of hours
in personal research time on a global market and it offers significant benefits
in expanding business opportunities throughout the global Confectionery
industry analysis. In a fast-paced ever-changing world, business leaders need
every advantage available to them in a timely manner to drive change in the
market and to stay ahead of their competition. This report provides business
leaders with a keen advantage in this regard by making them aware of
emerging trends and demand requirements on an annual basis.

CONFECTIONARY INDUSTRY AT NATIONAL LEVEL

Indian confectionery market mirrors its global counterpart with a well-

entrenched presence of multinational companies, wide portfolio of brands,
frequent product launches, intense marketing and advertisement campaigns.
Consumption of confectionery products is not restricted to children anymore.
Adults have opened up to consumption of confectionery in a big way. Several
companies are launching confectionery products targeting adults.

Confectionery in India is broadly classified as chocolate based confectionery,

sugar based confectionery and gum based confectionery. The categories are
further classified as follows:

Confectionery sector in India is well consolidated with top players holding a

major share of the market; local subsidiaries of global confectioners are
among the leading players in India. Large players have a significant presence
in chocolate confectionery market while smaller players primarily operate at a
regional level and have sizeable base in sugar-based confectionery market

The Indian confectionery market was valued at around INR 95 billion in 2012-
13, growing at an annual rate of 10-12% since 2009-10. Of the total market,
sugar confectionery holds a market share of around 46% and the rest by
chocolate and gum confectionery segments. Owing to lower unit price than
chocolate confectioneries, sugar confectionery segment has registered higher
volume sales over the recent years Traditionally, small domestic players
catering largely to a regional market accounted for a major share of the sugar
confectionery market. However, in the recent years, multinational players
have entered this market and have introduced quality products. Chocolate
consumption is mainly centered around semi-urban and urban areas due to
foreign exposure, rising disposable income and consumers’ impulse buying.
Players have identified age-specific niche market segments within the
chocolate confectionery market and are undertaking intense advertising
campaign to ensure effective brand communication and positioning.

The confectionary market in India has a well entrenched presence of

multinational players such as Mondelez (formerly Cadbury India), Nestle,
Perfetti Van Melle, Mars India and Lotte as well as large domestic players
such as Amul, Parle, ITC, Ravalgon and Candico. Multinational companies
such as Ferrerro, Hersheys and Lindt have a strong presence in the premium
chocolate market. In the chocolate confectionery segment, Cadbury holds a
market share of around 65-70%, followed by Nestle at around 20%
CONFECTIONARY INDUSTRY IN GUJARAT

Surat: Move over the sugary gharis and ghevars! Surat will start dishing out
Swiss chocolates too.

City-based Rajhans (Desai Jain) Group is setting up a Rs 500 crore chocolate

factory in Kim on Mumbai-Ahmadabad highway. The Rs 2,000 crore real
estate group has diversified into confectionery business by tying up with a
leading chocolate maker from Switzerland to manufacture nearly 25 tones of
chocolate bars and moulds.

To be sold under the brand name Schmitten and Hoppits, the chocolates will
be available in the market by January. Schmitten will be in moulds and
Hoppits which will be sold as bars. The group is setting up the factory
sprawling on 1.5 lakh sq ft land.

The machinery and operating technology is imported from the UK, Denmark,
Germany and Switzerland. The factory is the first of its kind in Gujarat and
touted to be the third biggest in the country after Cadbury’s and Nestlé’s .

"The Swiss chocolate maker with whom we have tied up is number one in
Switzerland," said Jayesh Desai, chairman of the group. Desai said the
chocolates will be premium brands.

The Indian chocolate market is valued at around Rs 4,500 crore is likely to

touch Rs 7,500 crore by 2015, according to Assocham. Cadbury commands
the highest 70% share. Rajhans Group has also hired two top executives from
Cadbury.

Shubhra Kallani, marketing head of Rajhans Nutriments, said, "We will launch
our products in eight states including Gujarat, Maharashtra, Tamil Nadu,
Punjab, Rajasthan , Karnataka, Delhi and West Bengal."

"Compared to other chocolates selling in the market, these will be costlier as it

will be apremium product," she added. The plant in itself will be a tourist spot
for those wanting to see how chocolates are made.
CURRENT TRENDS IN CONFECTIONARY INDUSTRY

There are a number of trends within the chocolate industry that are driving
growth; and product innovation in 2010 brought a 16% increase in new
product releases over 2009. Increasing disposable incomes as well as
changing public sentiments regarding health and our global community are
the driving forces behind this growth in innovation.

Premium and specialty items have shown strong growth over the long-term.
During the recession, there had been a shift away from premium items, but as
the economy has continued to recover, sales of premium items have taken
the lead again. High-end varieties can be baked on the premises, come from
a renowned region or have a hidden secret recipe.

Seasonal and boxed assorted chocolates have been experiencing the fastest
growth, and sales are expected to expand 13% between 2010 and 2015.
Holidays, birthdays, retirement parties and more, chocolate is a versatile gift
for many occasions.

Over the last several decades there has been increased understanding of
what constitutes a healthy diet, and there has been a dramatic increase in
sales of sugar free, reduced fat and reduced calorie offerings.

Dark chocolate is known to lower both blood pressure and cholesterol, and
has nearly 8 times the number of antioxidants as found in strawberries.

A recent survey found that 35% of respondents believe dark chocolate to be

healthier, and it shows: sales grew 9% in 2009 versus 3.6% for the chocolate
industry as a whole. Fair-trade certified chocolate is another fast growing
segment of the market, where consumers pay a premium to ensure goods are
produced in an ethical manner. As our global community grows smaller with
the communication revolution, it becomes glaringly obvious that goods
produced in developing countries are often subject to horrible labor conditions
or controlled by dominant industry participants.
Fair Trade is a social movement aimed to promote sustainability in developing
countries, and generally requires a higher price but conforms to higher social
and environmental standards.

PESTEL ANALYSIS OF CONFECTIONARY INDUSTRY

The PESTEL model of analysis will be used to observe the external factors
and their impacts on the global confectionary industry. PESTEL represents a
total of six factors, namely Political, Economical, Social, Technological,
Ecological and Legal.

Political Factors: The policies of restrictions imposed on trade as well as

protectionist policies for sugar producers created by developed countries
caused an increase of sugar prices resulting from the decrease in supply. This
has been seen as a threat towards confectionary companies, due to their
dependence on sugar for their products.

Economic Factors: The recent global economic crisis has affected the cost
of operations for companies as well as consumption by customers.
Consumers tend to spend very conservatively and purchase only times of
necessity during recessionary periods. This can have a negative effect on
sales of luxurious or premium products in the market, in which the
confectionary industry belongs. Adding to this burden, the increased price of
cocoa, which is typically a main ingredient of some confectionary products,
has had a significant impact on the confectionary industry.

Social Factors: The overall population of Europe is aging compared to other

markets. This is important for the confectionary industry, because the market
relies on purchases from younger consumers. Additionally, health
consciousness plays a role in the sales of the confectionary market's growth.

Technological Factors: The technological factors that have affected the

confectionary market can be seen in the development of artificial sweeteners
including xylitol, isomalt, and stevia. The developments of these ingredients
resulted in producers of confectionary products to promote non-sugar
products to support the growing segment of consumers who are health
conscious and provide healthier products.
Ecological Factors: Environmentally friendliness has become a growing
concern for many consumers recently. This trend represents nearly 30
percent of the market of consumers. This has resulted in the confectionary
market's development of new packaging and materials which are
environmentally friendly.

Legal Factors: Obesity is becoming a growing concern for most people in

developed countries. Laws have been created which deal with these potential
health problems, in particular obesity in children is addressed through these
laws. The development of these laws has increased restrictions to
promotional efforts towards children of companies such as confectionary
producers.

MAJOR PLAYERS IN CONFECTIONARY INDUSTRY

Table No: 2.1 Major Players

Product/Brand Competitors

Mondelez India Silk, Bourneville, Celebrations, Toblerone, Glow

Nestle India Kit Kat Senses, Kit Kat Dark Senses, Alpino

Amul Dark Chocolate, Tropical Orange Chocolate

Mars International Snickers, Galaxy, Mars, Milky Way, Skittles, M&M's, Twix

Ferrero India Ferrero Rocher, Raffaello, Mon Cheri

Lindt Creation Hazelnut de Luxe Milk, Creation Mousse au

Chocolat Dark, Lindor Bar Milk, Lindt Swiss Luxury
Selection, Lindt Excellence

Hershey's Milk Chocolate & Almonds Giant Bar, Kisses Milk Cho
and Almonds,

Frey Pecan & Caramel Chocolate, Creamy Milk Chocolate,

 Swiss Classic 72% Dark Chocolate Bar

Chocoholic Nutty and Fiery Combo of Chocolate Bars, Milk

Belgium Chocolate, Dark Chocolate, Caramel
Chocolates

MAJOR OFFERINGS OF CONFECTIONARY INDUSTRY

Confectionery is the art of making confections, which are food items that are
rich in sugar and carbohydrates. Exact definitions are difficult. In general,
though, confectionery is divided into two broad and somewhat overlapping
categories, bakers' confections and sugar confections.

Bakers' confectionery, also called flour confections, includes principally sweet

pastries, cakes, and similar baked goods. In the Middle East and Asia, flour-
based confections are more dominant.

Sugar confectionery includes sweets, candied nuts, chocolates, chewing gum,

sweetmeats, pastillage, and other confections that are made primarily of
sugar. In some cases, chocolate confections (confections made of chocolate)
are treated as a separate category, as are sugar-free versions of sugar
confections. The words candy (US and Canada), sweets (UK and Ireland),
and lollies (Australia and New Zealand) are common words for the most
common varieties of sugar confectionery.

The confectionery industry also includes specialized training schools and

extensive historical records. Traditional confectionery goes back to ancient
times, and continued to be eaten through the Middle Ages into the modern
era.
CHAPTER
3
RAJHANS
(DESAI & JAIN)
GROUP
PROFILE
RAJHANS (DESAI - JAIN) GROUP

GROUP PROFILE

The Rajhans (Desai-Jain) Group stands as an example of a successful

journey that has changed the lives of many people. Spearheaded, managed
and run by the first generation of young and dynamic entrepreneurs, the
success story of the group started in the year 1990 with its very first project in
the Edible Oil Refinery. This success gave the momentum and confidence to
venture into the field of textiles. RAJHANS SILK MILLS PVT. LTD. was setup
at Sachin in the year 1997.

In the year 2000, the dynamism and foresight of the management gave a new
direction to the entertainment industry of Gujarat, setting up an ultra-modern,
luxurious and versatile Cinema House, RAJHANS PRIME CINEMA, at Surat.

With time and success on the group's side, the company soon ventured into
Real Estate - the fastest growing industry in India. In the short span of 10
years, the group has undertaken various projects ranging from Commercial
Complexes, Shopping Malls, Residential High-Rise Apartments, Bungalows
and Row Houses. Today, Rajhans Real estate's construction sites are spread
across Gujarat and run into millions of square feet, making it one of the most
trusted and valuable brand in the state.

The group also envisaged enormous scope and siege opportunity in

Hospitality Industry with investments in Boutique Hotels at different locations
across the country. Projects have already commenced at Shirdi,
Mahabaleshwar, Mt. Abu, Udaipur and Vaishnodevi.
In recent years, the group has planned to penetrate into the one of the most
fascinating Confectionery Industry, manufacturing quality chocolate of
international standards which is presently dominated by the multinational
conglomerates.

MANAGEMENT
A group so well poised has to be driven by stalwarts who live their passion
every moment. Rajhans (Desai-Jain) Group is spearheaded by dynamic
leaders who imbibe their values in the workforce and thereby ensuring growth
in various verticals of the business. Adding more to it are technical expertise,
excellent domain knowledge and extensive cross-functional experience, which
turn crucial in smooth functioning of the group.

Mr. JAYESH B. DESAI - GROUP

CHAIRMAN
Mr. Jayesh Desai is a very young, dynamic,
energetic and passionate personality, has
been leading the Group since the inception.
He is first-generation entrepreneur, an
exemplary leader and an instrumental force
behind the success of the Rajhans Group.

A versatile man with strong business acumen,

Mr. Desai heads planning and strategic
business development and plays an active role in developing the business
strategy for the group. He is really instrumental in Group’s foray into every
new business venture. He is a man with vision and mission having in-built
quality of seizing every business opportunity at optimum level. He also
spearheads the social welfare activities for the group.

His philosophy of “customer happiness through delightful products and

services” is now very much the driving force for the group.
 Mr. SHIVLAL G. JAIN - GROUP M.D.
Mr. Shivlal Jain, a dynamic and committed leader
with vast experience expertise in the field of
Finance, Accounts, Costing and Taxation. He is
instrumental in successfully running and managing
all the business verticals of the Group. A person
admired by everyone in the Group for his
commitment, dedication and flexible approach
towards work, Mr. Shivlal Jain is looked upon as a
mentor who leads by example. A key person in the
success story of the Group, his wisdom and
experience has become invaluable assets for the Group.

VISION & MISSION

Vision - Spreading Happiness

To enrich and enhance people’s lives with happiness, by bringing in products

and services those delight them and add value to their lives.

Mission - Creating Experiences

 Develop world-class products and services that adhere to international

quality standards.
 Create experiences that delight customers by delivering invaluable
services.
 Empower stakeholders to grow in a manner that is mutually beneficial.
VALUES

Often it's the values inside that create a personality, celebrity and an identity.
In this era of globalization, values matter more than volumes in creating a
corporate conglomerate. The Rajhans (Desai-Jain) Group too is result of its
invaluable values namely integrity, excellence, team work and customer
delight. The creative rendition of this is depicted in the form of value tree.
 Integrity
Integrity goes a long way in practicing fair business in today's world. They
in turn ensure trustworthiness amongst customers, team members and
stake holders. At Rajhans (Desai-Jain) Group, integrity lies in the roots of
our business. Thus they are depicted through the roots in the value tree.
 Passion
In today's world businesses are result oriented. Every day a new
benchmark is created. At Rajhans (Desai-Jain) Group, passion forms the
main trunk of our business. We passionately pursue our dreams. That
which paves a path for innovative products, excellence and customer
delights. Thus Passion is depicted through the main trunk of the value
tree.
 Excellence
At Rajhans (Desai - Jain) Group, we believe in benchmarks. A team
member inspires a fellow team member. And thus excellence is the core
objective that can be seen by the outside world. In our value tree,
excellence is depicted through the leaves that symbolize the evergreen
and a blossoming business conglomerate.
 Teamwork
Any business house is a result of unmatched teamwork by its team
members. At Rajhans (Desai-Jain) Group, every team member takes the
onus to accomplish the given task. The end result: Brand Rajhans wins
more hearts of people than awards and accolades. In our value tree,
teamwork is depicted through the tree which is a culmination of various
values and priceless team effort.
 Customer delight
When values form the core, customer delight is the fruit borne by the
business house. We believe that customer delight forms the core essence
of our existence. Thus this value is depicted through the aerial roots of the
value tree.
 ORGANOGRAM

Mr. JAYESH DESAI

(GROUP CHAIRMAN)

Mr.PRADEEP MS, ZAKHNA Mr. DELIP MR. Annarao

DESAI BHENDERI patil
(Sales Head)
(MARKETINGHEAD (HR HEAD) (Production
)
head)

Mr. Alpesh Ms.bhavita Sudheer maram

Balar
Mr.vishal (AGM)
Mr.shelendra Ms. Bhumi
solanki Mr.indrajit Mr.rajkumar
Mr. Vishal
Mr. Bhavin Ms.ankita Mr.dhaval
(Sales officers)
Mr.anoop (HR TEAM)

(Marketing
executives)
Profile of Rajhans Nutriments Pvt. Ltd:
SCHMITTEN (PREMIUM CHOCOLATES)
Figure: 3.1 Schmitten chocolate photos

“If there's no chocolate in Heaven, I'm not going.” Jane Seabrook, Furry Logic
Laugh at Life. The mere word ‘Chocolate’ has always fascinated us. It has
taken over as a special affinity in the culinary list of every culture and of
course, it’s a special treat that appeals to one and all.

At Rajhans (Desai-Jain) Group, we truly understand the value & essence

of cocoa and therefore came up with an idea of establishing a fascinating
and high-standard chocolate factory. With a total built-up area of 1.75 lakh
sq.ft, it is equipped with 100 per cent European technology with a range of
machineries sourced from the UK, Denmark, Germany, Belgium and
Switzerland; and beyond a shadow of a doubt, this makes us one of the
fastest-growing premium chocolate factories in Asia.

With all the best-in class facilities, quality control unit and expert chocolate-
makers, our new brand of luxury chocolate, ‘Schmitten’ is in a class by itself
which is all set out on a delicious mission to spread happiness amongst the
chocoholics from across the world. Our range of best-tasting chocolate tablets
includes ‘Schmitten’ and for a variety of chocolate bars ‘Hoppits’ that are
available in varied ingredients with fantabulous taste and high on energy
values.
Adhering to the sheer words ‘Luxury Chocolates’, we source the richest cocoa
beans from Ghana and use only the highest quality elements with their very
own blend and recipes. Since we’re duly concerned over consumer choices,
we produce only a luxury range of both milk and dark chocolates with portion
sizes those are perfectly right for the customers and their families.

Our passion towards making the best chocolates is absolutely evident and
thus, we take great pride in our constant endeavors and values for delivering
the best!

Figure: 3.2 Brand Ambassador of Schmitten Chocolate

SCHMITTEN

Figure: 3.3 Variety of Schmitten chocolate

HOPPITS

Figure: 3.4 Varieties of Hoppits

Milestones
Table No: 3.1 Milestones Achieved by

Beginning Pioneer Edible Oil Edible Oil

Business Sector

1997 Diversification Silk Mills Pvt. Ltd. Textile Sector

2000 Diversification Prime Cinema Entertainment

Sector

2001 Diversification Builders Realty Sector

2003 Expansion Veg.Oil Refinery Edible Oil Sector

2004 Expansion Constructions Realty Sector

Pvt.Ltd

2005 Expansion Poly-Prints Textile Sector

2007 Expansion Cine-World Entertainment

Sector

2010 Expansion Infracon India Realty Sector

2011 Diversification Nutriments Confectionery

Sector

SWOT ANALYSIS
Strengths
  Recipes are designed and developed on Europe.
 Pure cocoa based chocolate, not compound chocolate.
 Value for money compared to imported chocolate.
 Highly automated process lines and machineries imported from
Europe.
 Free from non veg./ egg based ingredients
 Premium chocolates made with a real cocoa ingredient.
 Hoppits are made with the milk protein as emulsifier

Weaknesses

 Customer convenience- customer face difficult to find way to reach

store in the mall.
 Customers are not aware about existence of Schmitten and Hoppits in
the town/mall.
 Pricing perception with respect to competitors.
 Lack of sales support

Opportunities

 Potential for investment. (SIS Shop in Shop)

 They can increase product awareness by working hard in marketing
strategies like advertisement different means, hoarding, different
activities etc.
 Introducing more variants in both dark and milk chocolate to curb major
player.

Threats

 Rising chocolate prices is biggest threat.

 Improving store standards at competition
 High visibility/ marketing by competition.
 Cut throat competition
 Pricing power of competition

MARKET POSITION

SCHMITTEN CHOCOLATES TODAY:

 Figure No: 3.5 Schmitten chocolate today

Presence in 12 states through 12

Carry Forward Agents (CFA) and Has a portfolio of 2 product lines
233 distributors

Over the past year they have

The sales have grown by more
captured 2% of the luxury
than 50% over the past quarter.
chocolate segment.

The graphic above shows a brief overview of a company who launched its
premium brand of chocolate in the Indian Luxury chocolate market in
September 2014. Less than a year after its launch catering to only 3 states
namely Gujarat, Rajasthan and Maharashtra with a handful of distributors,
currently the company has presence in 12 states with 12 CFA and 233
distributors, hence having a robust sales and distribution network. The Indian
chocolate market is dominated by Mondelez, which commands a 62% share,
ahead of nearest rival Nestle on 18%. Mars and Ferrero with a share of 6%
and 3% respectively – both have a premium positioning in the market.
Mondelez recently premiumized its Bournville brand to appeal to the
increasingly affluent Indian consumer. Mars last year launched premium tablet
chocolate brand Galaxy in the country at a reduced price point and also
Ferrero’s Rocher brand has proved popular among Indian consumers.

The company currently holds a portfolio of 2 products in Schmiiten which has

7 variants and Hoppits which falls under the Schmiiten range of chocolates
has 4 variants. The company within its very first year of launch has captured
2% of the luxury chocolate segment in India and has started exporting to
nearby countries such as Nepal and Bhutan. Value notes expects the Indian
chocolate to grow at a compounded annual growth rate (CAGR) of 16% over
the next five years to reach INR 122bn ($2bn) by fiscal 2019. The Schmitten
brand is manufactured in Gujarat, India and is aimed at India’s youth and
young adults was launched by Bollywood actor Priyanka Chopra. The
company has now grown by more than 50% quarterly since its launch in
September 2014, thus already mounting a challenge to the industry stalwarts.

CHAPTER
4
REVIEW OF
LITERATURE
Annika Lybeck, Maria Holmlund-Rytkonen & Maria Saaksjarvi
(September 2006) Studied on Consumer Perceptions and Buying of
Chocolate Bars in Finland. The researcher has used structured questionnaire
and open ended question for collecting qualitative and quantitative data.
Findings of the study reveals that the consumer would choose a store brand
every time or never when making a buying decision. Some significant findings
are that heavy-user store-brand chocolate bar buyers have more favourable
attitudes towards store brands, are more price sensitive, more often seek
price offers, and find availability and friends’ recommendations more
important. Thus, it seems as if store-brand buyers altogether are more
confident with retailers’ own products’ quality and are more sensitive to price
and value for money.

Prof. Ray Titus, Dr. Debashish sengupta, Ms. Alankrita Garg (February
2013) Studied on Leveraging Distribution Networks for Competitive
Advantage. A researcher has used an unstructured qualitative questionnaire
for the data collection. The information collected from the distributors, projects
that Britannia has a good hold on the market in terms of distribution strategies
and also that Britannia has managed to get a good market share in the
biscuits category and Parle’s glucose biscuits are very popular among the
rural population also as they are one of the oldest available glucose biscuits in
the market and the glucose biscuits are available at various prices which
makes it feasible for a larger population to buy it.

Dr. Abdul Assis Koroth (January 2015) Studied on The Influence of

Demographics on the Perception Level of Multilevel Marketing Distributors.
The empirical data for this study was obtained through a survey conducted
among 614 distributors of selected companies in three regions of Kerala. The
study reveals that there appears to be a significant correlation between
education and level of perception to multilevel marketing as people who had
the lowest perception were most likely to be those with low qualifications. The
study reveals that the respondents who were in Government or private
employment were perceived well the concept of MLM (Multi-level marketing
channel firm). Whereas more than half of the respondents who unemployed
had little perception about MLM. The conclusion of the study reveals that
direct sales have become so popular in India because it offers everyone the
chance of becoming a successful self employed opportunity with the freedom
to win.

Fazlollah Kazemi (September 2010) Studied on The Role of Media on

Consumer Brand Choice a Case Study of Chocolate Industry. The researcher
has used structure questionnaire and sample size was 600. Findings reveals
that out of seven most preferred brands (Cadbury Dairy Milk, 5Star, Perk, Bar
one, Kit Kat, Munch and Nestle, three brands (Cadbury Dairy Milk 37.7%, 5
Star 17.7% and Perk 16.2%) made up about 72% of the brand preference of
consumers. It also reveals that Dairy Milk is the most preferred brand. Study
also reveals that advertising plays important role in retaining customer and
increasing market share. The study concludes that advertising and quality are
two major factors that affect consumer preference for chocolates.

Justin Beneke, Victoria Floyd, Caroline Rono & Kimryn Sherwood

(December2, 2014) Studied on Chocolate, Colour and Consideration: An
Exploratory Study o Consumer Response to Packaging Variation in the South
African Confectionery Sector. The researcher has used mall-intercept survey
method involves the collection of data in which a random sample of
respondents passing through a shopping mall are intercepted and asked to
participate in the study. Respondents were generally agreeable to the notion
of the colours red, blue and purple stimulating spontaneous response in
favour of purchasing chocolate confectionery at the point of sale. In this
respect, orange was seen to be out of kilter with the other colours and
deemed considerably less attractive in prompting spontaneous response.

Hemant J. Katole,B.V.Sangvikar (October 1, 2012)A study of consumer

purchase behaviour in organized retail outlets. In this research snowball and
convenience sampling method has used for sampling. Based on the retail
format, the researcher decided to conduct the survey of three types of retailer
which include supermarkets, departmental Stores and hypermarket.
Researchers used questionnaire and personal interview method for collecting
data. Finding of the study suggest that shopping habits of Indian customers
are changing due to their growing disposable income, relative increase in the
younger population, and the change in attitudes towards shopping. In the
study researchers have observed that customer purchasing behaviour
towards garments & cosmetics followed by food & eatables and electronic
goods.

Bhagwan Singh, Dr. Anjaney K. Pandey.A Literature study on trends in

retail practise and their impact on traditional retailing in India. In this research
data is collected solely from secondary sources like print journals, online
journals, books, reports etc. It can be concluded that the transformation of
traditional retailing to organized retailing in the form of shopping malls, hyper
city, supermarkets, departmental stores, convenience store, specialty stores
etc. is taking place at a regular pace in India. Global retail players are opening
their outlets. Urban people are enjoying “shopptainment” in these places.
Omari Nekoro Williams (April 2015) Studied on Retail Distribution within the
New York City Organic Cacao Market. In the research data is collected from
face to face in-depth interview. Researcher has identified six themes from the
participants, which were price point strategy, B2B relationships, differentiation,
strategic locations, lack of operating capital, and customer relationships.
Conclusion of the study reveals that enhancing profits in the distribution
channels of small organic cacao companies requires a holistic approach in the
New York Tri-State area. Companies should focus on multiple components to
enhance profits in their distribution channels.

Ms. Parul Mittal, Dr. Ravinder (September 2012) Studied on Consumer

Buying Behaviour and Perception towards Chocolates Brands and Its
Consumption. The objective of the study includes what was general
behaviour of consumer and then inferring the relationship that exist among the
different variables to test the extent of brand loyalty and influence of one
variable over the other. Findings of the study reveals that most of the
respondents are consuming chocolates daily, most of the respondents are
buying chocolates for personal consumption as well as for gifting purpose.
The study further reveals that most of the respondent’s purchase decision is
affected by display ads at store, most of the male and female are buying
chocolates due to taste, availability and packaging etc. In study of 86
respondents it was found that 95% (82) respondents like Cadbury Brand, 68%
(59) respondents like Nestle Brand, 24% (21) of respondents like Amul Brand
& 1% respondents like Other Brand. So it can be concluded that Cadbury is
most famous brand among others.
 CHAPTER
5
RESEARCH
METHODOLOGY
a. PROBLEM STATEMENT

Some of the retailers are not aware about the Schmitten chocolate. Retailers
are known about that chocolate brand but the distribution channel are not
good and Hence Researcher analyzes “To analyze retailer experience of
selling Schmitten as a brand of chocolate.”

b. OBJECTIVE OF STUDY
 To analyze retailer experience of selling Schmitten as a brand of
chocolate.
 To do comparative study of Schmitten with other brands of chocolates.
 To know retailer’s preference of selling brands of chocolates.
 To know reasons why retailers are not selling Schmitten as a brand of
chocolate.

c. RESEARCH DESIGN
Research design is the plan structure and strategy if investigation conceived
so as to obtain answers to research question and to control variance.

Descriptive research also known as statistical research. It describes data and

characteristics about the population or phenomenon being studied.
Descriptive research answers the questions who, what, where, when and
how. This study is complex and determines high degree scientific skill to study
the problem.

In This study the descriptive research design has been conducted.

d. SAMPLING PLAN
 Population: All the retailers selling chocolates from their retail store in
Surat city can be considered as part of population for the study.
 Sample Size: In this project 100 respondents as retailers were taken as
sample.
 Sampling Method: In this study non probability, convenience sampling
method has been used.
e. SOURCES OF DATA

Basically there are two types of data collection sources:

1. Primary Data:
Primary data means data collected directly from first-hand experience.
Means data collected for the first time by any researcher for any
research use. This study uses Questionnaire as a tool for the collecting
primary data.
2. Secondary Data
Secondary data are those, which have already been collected by some
other person for their purpose and publish. Secondary data are usually
in the shape of finished products.

In this project, the secondary data such as research paper, internet, and
websites etc. are used to collect for the preparation of research of project. In
the study primary and secondary data both type of data has been used.

f. DATA COLLECTION METHOD

This research study uses Survey as method for collecting primary data from
the respondents.
g. DATA COLLECTION TOOL

For this project structured questionnaire was used as tool for data collection
from the respondent for the purpose of conducting research.

h. HYPOTHESIS TESTING BY USING CHI SQUARE TEST

H0: There is no significant association between experience of selling

Schmitten and selling of other products of Schmitten.

H1: There is significant association between experience of selling Schmitten

and selling of other products of Schmitten.
H0: There is no significant association between area and selling of Schmitten
brand.

H1: There is significant association between area and selling of Schmitten

brand.

H0: There is no significant association between type of store and selling of

Schmitten brand.

H1: There is significant association between type of store and selling of

Schmitten brand.

i. TOOLS FOR ANALYSIS

For the purpose of analysis various analytical approaches have been used
like simple percentage, frequency, charts and Chi Square Test by using SPSS
software.
j. LIMITATION OF THE STUDY
 Respondent may give bias data which may make result of the study
inaccurate.
 Sample size chosen for the study was small which may not be good
representative of the universe under the study.
 CHAPTER
6
DATA ANALYSIS
&
INTERPRETATIONS
 1. Since how long you are running the retail store?
[ ] less than 1 year [ ] 1 Year-3 years
[ ] 3 Year-5 year [ ] 5 Year-7 years
[ ] more than 7 years
Table: 6.1 Tenure of store

Particular Respondent

Less than 1 year 19

1-3 year 8

3-5 year 34

5-7 year 17

More than 7 year 22

Figure: 6.1 Tenure of store (%)

34
35
30
25 22
19
20 17

15
8
10
5
0
Less than 1 1 -3 year 3-5 year 5-7 year More than 7
year year
Respondent

Interpretation

From the above graph and data, it can be stated that 34 stores were running
from last three to five years, while 22 stores were running from more than
seven years and 19 stores of Surat city were running for less than one year.
 2. Which brand of chocolates do you keep in your store?
[ ] Cadbury [ ] Kit Kat
[ ] Amul [ ] Snickers
[ ] Schmitten [ ] Hoppits
[ ] 5-star [ ] Munch
[ ] Perk [ ]
Others………………………………..

Table: 6.2 Brands of Chocolates

Particulars No. of Respondents

Cadbury 100

Amul 42

Schmitten 54

5- Star 3

Perk 1

Kit Kat 5

Snickers 34

Hoppits 4

Munch 65

Other 11

Figure: 6.2 Brands of chocolate (%)

100
100

80 65
54
60
42
34
40

20 11
3 1 5 4
0
Cadbury Amul schmitten 5 star Perk Kit Kat Snickers hoppits Munch Other

Respondent

Interpretation
From the above graph it can be stated that all of 100 stores were keeping
Cadbury their store, 65 out of 100 stores were keeping munch in their store,
while 54 stores out of 100 are keeping Schmitten in their store for selling and
so on.
 3. Have you ever sold Schmitten as a brand of chocolate?
[ ] Yes [ ] No

Table: 6.3 have you ever sold Schmitten chocolate

Particulars No. of Respondents

Yes 54

No 46

Figure: 6.3 have you ever sold Schmitten chocolate (%)

46%

54%

Yes No

Interpretation

From the above data it can be found that 46 % respondents have sold
Schmitten brand, while 54% respondents have not sold Schmitten yet.
 4. Describe your selling experience of Schmitten on following criteria and
scale:
Particulars Very good Good Average Poor Very Poor

Product Awareness 1 24 27 2 0

Consumer 0 22 25 7 0
acceptance
Product quality 8 41 3 2 0

Product taste 13 38 3 0 0

Price 0 1 49 4 0

Packaging 2 8 36 8 0

Margin 1 7 43 2 1

Figure: 6.4 Experience of selling Schmitten (%)

49
50
45 43
41
40 38
36
35
30 27
24 25
25 22
20
15 13

10 7 8 8 8 7
32 3 4
5 1 2 2 21
0 0 0 0 00 01 0 0 1
0
product consumer product product price packaging margin
awareness acceptance quality taste

very good good avaerage poor very poor

Interpretation

Form the above table selling experience of retailer as stated above, 41

retailers out of 100 said that product quality is good, while 49 respondents out
of 100 said that the price is average and 43 respondents out of 100 said that
margin provided by company is average and so on...
 5. Compare the brand of Schmitten along with available brands of
chocolate on following scale:
Particulars Cadbury Schmitten Nestle Amul Mars

Quality of product 47 6 1 0 0

Product variants 41 1 6 4 0

Good in taste 26 28 0 0 0

Attractive package design 49 2 1 2 0

Small units 26 0 1 27 0

Price 47 0 5 2 0

Service of distributors 49 0 4 1 0

Promotional offers 48 1 3 1 1

Figure: 6.5 Comparison with the brand of chocolates (%)

49 49 48
50 47 47
45 41
40
35
30 28 27
26 26
25
20
15
10 6 6
4 5 4
5 212 2 3
100 1 0 000 0 01 0 0 0 0 10 1 11
0
Qulity of Product Good in test attractive Small units Price Service of Promotional
product variants package distributors Offers
design

Cadbury Schmitten Nestle Amul Mars

Interpretation

As stated above 47 respondents said that Cadbury’s product quality is good

than all other chocolates, while retailer feels that taste of Schmitten is better
than Cadbury and all other chocolates, further more Amul and Cadbury are
the two brands which has small units than other brands and service of
distributors and promotional offers are better in Cadbury than other
chocolates and so on.
 6. Which of the following chocolates brands do you prefer to sell among
customer on following scale:
[5 - Mostly Preferred, 4 - Preferred, 3 - Neutral, 2 - Less Preferred, 1 - Not
Preferred]
Particulars 5 4 3 2 1

Cadbury Dairy milk 49 5 0 0 0

Nestle Kit Kat 5 27 20 1 1

Schmitten 6 23 17 8 0

Amul 0 12 21 7 14

Mars 0 8 14 4 28

Figure: 6.6 Preference to sell among customer (%)

49
50

45

40

35

30 27 28

25 23
20 21
20 17
14 14
15 12

10 8 8 7
5 6 5 4
5
0 0 0 0 1 0 1 0
0
Mostly Preferred Neutral Less Preferred Not Preferred
Preferred

Cadbury Dairy milk Nestle Kit Kat Schmitten Amul Mars

Interpretation

From the above table 49 respondents out of 100 said that they mostly
preferred Cadbury to sell among customer, 28 respondents said that they will
not prefer mars to sell among the customers and 27 respondents agreed on
nestle and 23 respondents agreed on Schmitten that they will prefer to sell
among customers.

7. Share your overall experience of selling Schmitten on following scale:

[ ] Very satisfactory [ ] Satisfactory
[ ] Neutral [ ] Dissatisfactory
[ ] Very dissatisfactory
Table: 6.7 Over Experience of selling Schmitten

Particulars No. of Respondents

Very satisfactory 0

Satisfactory 21

Neutral 31

Dissatisfactory 2

Very dissatisfactory 0

Figure: 6.7 over experience of selling Schmitten (%)

35
31

30

25
21

20

15

10

5 2
0 0
0
Very Satisfactory Neutral Dissatisfactory Very
Satisfactory Satisfactory

Interpretation
From the above table 31 respondents said that their experience is neutral of
selling Schmitten while 21 respondents were satisfied with selling Schmitten
among customers.

8. How long do you see yourself associated with the Schmitten brand?
[ ] I will always sell as long as Schmitten brand is available.
[ ] It depends on brand performance in coming time.
[ ] I cannot commit long time.
Table: 6.8 Associated with the Schmitten brand in Future

Particulars No. of
Respondents

I will always sell as long as Schmitten brand is available 12

It depends on brand performance in coming time 33

I cannot commit long time 9

Figure: 6.8 Associated with the Schmitten brand in Future (%)

33
35

30

25

20 12
15 9

10

0
I will always sell as It depends on brand I cannot commit long
long as brand is performance in time
available coming time

Interpretation

From the above table 33 respondents out of 100 said that they will associate
with Schmitten as per its brand performance, while 12 respondents said that
they will sell Schmitten as long as possible while 9 respondents said that they
can’t commit long time with Schmitten.

9. Are you willing to sell other products of Schmitten?

[ ] Yes [ ] No

Table: 6.9 sell other product of Schmitten

Particulars No. of Respondents

Yes 49

No 5

Figure: 6.9 sell other product of Schmitten (%)

9%

91%

Yes No

Interpretation

From the above table 49 respondents that mean 91% said that they were
ready to sell other products of Schmitten while a 9% respondent that means 5
respondents were not ready to sell other brands of Schmitten.
 10. Will you recommend others to sell Schmitten brand?
[ ] Yes [ ] No
[ ] Can’t say

Table: 6.10 recommend others to sell Schmitten

Particulars No. of Respondents

Yes 30

No 5

Can’t say 19

Figure: 6.10 recommend others to sell Schmitten (%)

35%

56%

9%

Yes No Can't Say

Interpretation

From the above table 30 respondents were ready to recommend Schmitten to

other while 5 respondents were not ready to recommend and 19 respondents
were yet decided.
 11. Do you find any scope of improvement in Schmitten?
[ ] Yes [ ] No

Table: 6.11 (A) Scope of improvement

Particulars No. of Respondents

Yes 52

No 2

Figure: 6.11 (A) Scope of improvement (%)

4%

96%

Yes No

Interpretation

From the above table 52 respondents found scope of improvement in

Schmitten, while 2 respondents did not find any scope of improvement in
Schmitten.
 (B)If yes than in which area,
[ ] Package Design [ ] Taste
[ ] Price [ ] Margin structure
[ ] Promotional activity [ ] After sales services
[ ] Service of distributor
Table: 6.11 (B) Area of improvement

Particulars No. of Respondents

Package Design 10

Price 48

Promotional activity 48

Service of distributor 35

Taste 1

Margin structure 14

After sales services 27

Figure: (B) Area of improvement (%)

48 48
50
45
40 35
35
27
30
25
20 14
15 10
10
5 1
0
Package Price Promotional Service of Taste Margin After sales
Design activity Distributor Structure service

Interpretation
From the above table 48 respondents found scope of improvement in price
and promotional activity, while 35 respondent and 27 respondents found
scope of improvement in distributor and after sales service respectively.

12. Why have you not sold the Schmitten yet, state the reasons:
[ ] I was not aware about the brand of Schmitten.
[ ] Nobody has ask me about the Schmitten.
[ ] I find better alternative brands of chocolate.
[ ] I find less margin compare to other brand.
[ ] If other please specify………………………………………

Table: 6:12 Reasons for not sold Schmitten yet

Particulars No. of Respondents

I was not aware about the brand of Schmitten. 20

Nobody has ask me about the Schmitten. 13

find better alternative brands of chocolate 11

I find less margin compare to other brand. 2

Others 0

Figure: 6:12 reasons for not sold Schmitten yet (%)

20
20
18
16 13
14 11
12
10
8
6
4 2
2 0
0
I was not Nobody has I find better I find less Others
aware about ask me about alternatives margin
the brand of the Schmitten brands of compare to
Schmitten chocolates other brand

Interpretation
From the above table 20 respondents were not selling Schmitten because
they were not aware about the Schmitten, 13 respondents were not selling
Schmitten because customers have not asked for it, while 11 respondents
were not selling because they have better alternative brand of chocolates than
Schmitten.
 13. If company able to work on above mentioned issues, will you be ready to
sell Schmitten from your store?
[ ] Yes [ ] No
[ ] Can’t say
Table: 6:13 if issue solved, will you sell Schmitten

Particulars No. of Respondents

Yes 27

No 17

Can’t say 2

Figure: 6.13 if issue solved, will you sell Schmitten? (%)

4%

37%

59%

Yes No Can't Say

Interpretation

From the above table 27 respondents will ready to sell Schmitten if company
will work on issues like customer acceptance, awareness of brand and its
offerings etc... While 17 respondents were not ready to sell in future, and 2
respondents were unable to decide on the matter.
 14. If Yes, would you like an executive from Schmitten to contact you for the
same?
[ ] Yes [ ] No
[ ] Can’t say
Table: 6.14 executive from Schmitten

Particulars No. of Respondents

Yes 26

No 1

Can’t say 2

Figure: 6.14 executive from Schmitten (%)

3%
7%

90%

Yes No Can't Say

Interpretation

From the above table 26 respondents were ready to meet an executive of

company to sell Schmitten while 1 respondent of them were not ready and 2
respondents were unable to decide on this matter.
HYPOTHESIS
TESTING
HYPOTHESIS TESTING BY USING CHI SQUARE TEST

H0: There is no significant association between experience of selling

Schmitten and selling of other products of Schmitten.

H1: There is significant association between experience of selling Schmitten

and selling of other products of Schmitten.

Table No: 6.15 Observed and expected Frequency

Observed N Expected N Residual

0 46 25.0 21.0

Satisfactory 21 25.0 -4.0

Neutral 31 25.0 6.0

Dissatisfactory 2 25.0 -23.0

Total 100

Table No: 6.16 Observed N & Expected N Frequency

Observed N Expected N Residual

0 46 33.3 12.7

Yes 49 33.3 15.7

No 5 33.3 -28.3

Total 100
 Table No:6.17 Chi-square Test

Q.7 Q.9

Chi-Square 40.880a 36.260b

Df 3 2

Asymp. Sig. .000 .000

Interpretation

From the above test it can be found that the p value is less than level of
significance i.e. 0.000<0.05 so that null hypothesis is rejected, so there is
significant relationship between experience of selling Schmitten and selling of
other product of Schmitten.
H0: There is no significant association between area and selling of Schmitten
brand.

H1: There is significant association between area and selling of Schmitten

brand.

Table No: 6.18 Observed N & Expected N Frequency

Observed N Expected N Residual

yes 54 50.0 4.0

no 46 50.0 -4.0

Total 100

Table No: 6.19 Area

Observed Expected
N N Residual

0 46 16.7 29.3

varachha 30 16.7 13.3

city light 7 16.7 -9.7

bhatar 3 16.7 -13.7

adajan 8 16.7 -8.7

athwa 6 16.7 -10.7

Total 100
 Table No: 6.20 Chi- square

Q.3 area

Chi-Square .640a 90.440b

Df 1 5

Asymp. Sig. .424 .000

Interpretation

From the above test it can be found that the p value is more than level of
significance i.e. 0.424>0.05 so that null hypothesis is accepted, so there is no
significant relationship between area and selling of Schmitten brand.

H0: There is no significant association between type of store and selling of

Schmitten brand.

H1: There is significant association between type of store and selling of

Schmitten brand.

Table No: 6.21 Observed & Expected Frequency

Observed N Expected N Residual

yes 54 50.0 4.0

no 46 50.0 -4.0

Total 100

Table No: 6.22 type of Stores Frequency

 Observed Expected
N N Residual

Bakery 44 13.5 30.5

superstore 3 13.5 -10.5

Dairy 3 13.5 -10.5

provision
4 13.5 -9.5
store

Total 54

Table No: 6.23 chi- square

Q.3 store

Chi-Square .640a 91.926b

Df 1 3

Asymp. Sig. .424 .000

Interpretation

From the above test it can be found that the p value is more than level of
significance i.e. 0.424>0.05 so that null hypothesis is accepted, so there is no
significant relationship between type of store and selling of Schmitten brand.
CHAPTER
7
 FINDINGS

 From the analysis it was found that most of the stores were running from
last three to five years, while some stores were running from more than
seven years and some stores of Surat city were running for less than one
year.
 From the analysis it can be stated that all of store were keeping Cadbury,
the second brand is munch which was kept by majority of store and the
third brand was Schmitten.
 As stated above, selling experience of retailers, most of the retailers
agreed that product quality was good, while some respondents agreed that
price and margin provided by the company was average.
 Most of the retailers that Cadbury’s product quality was good than all other
chocolates, while retailer feels that taste of Schmitten was better than
Cadbury and all other chocolates, further more Amul and Cadbury are the
two brands which has small units than other brands and service of
distributors and promotional offers were better in Cadbury than other
chocolates and so on.
 Most of the respondents agreed that they mostly preferred Cadbury to sell
among customer, some respondents said that they will not prefer mars to
sell among the customers and some respondents agreed on Schmitten
and nestle that they will prefer these two brands to sell among customers.
 Most of the respondents surveyed agreed that their experience was
neutral of selling Schmitten, while some respondents were satisfied with
selling Schmitten among customers.
 Most of the respondents agreed that they will associate with Schmitten as
per its brand performance, while some respondents said that they will sell
Schmitten as long as possible while very few respondents said that they
can’t commit long time with Schmitten.
 Most of the respondents agreed that they were ready to sell other products
of Schmitten while some respondents that were not ready to sell other
brands of Schmitten.
 Most of the respondents were ready to recommend Schmitten to other
while very few respondents were not ready to recommend and 19
respondents were unable to decide.
 Most of the respondents found scope of improvement in Schmitten, while
two respondents were unable to find any scope of improvement in
Schmitten.
 Majority of the respondents found scope of improvement in price and
promotional activity, while some respondent found scope of improvement
in distributor and after sales service respectively.
 Most of the respondents were not selling Schmitten because they were not
aware about the Schmitten, some respondents were not selling Schmitten
because customers were not asking for it, while very few respondents
were not selling because they have better alternative brand of chocolates
than Schmitten.
 Most of the respondents were ready to sell Schmitten if company will work
on awareness issue, consumer acceptance, and comparative
performance, margin issue, mentioned in while some respondents were
not ready to sell.
 Most of the respondents were ready to meet an executive of company to
sell Schmitten while one respondent was not ready and 2 respondents
were not cleared about that.
 It was also statistically proven by using chi square test that there is
significant relationship between experiences of selling Schmitten and
selling of other product of Schmitten.
 It was also statistically proven by using chi square test that there is no
significant relationship between areas, type of store and selling of
Schmitten brand.

CHAPTER
 8
CONCLUSIONS
The problem of the research is that most of the respondents were aware of
the Schmitten brand but distribution network was not proper so the researcher
aim is to find retailer experience of selling Schmitten brand and the conclusion
is as below:

It is concluded that most of the respondent surveyed has agreed that they
were having neutral experience for selling Schmitten, while some respondent
were satisfied with it.

It is concluded that most of the respondents agreed that product quality of the
Cadbury’s good, while taste of Schmitten is good among all other chocolate.
Amul and Cadbury are the two brands which has small units and good service
of distributor. Most of the respondent has agreed that Schmitten has good
quality as well as taste among all other brands like Cadbury, Amul, Mars,
Nestle etc…

It is concluded from the study that most of the respondent were ready to sell
the Cadbury among the customer, while some of the respondent were not
ready to sell mars and some the respondent were ready to sell the Nestle and
Schmitten among the customer.

It is concluded that most of the respondents were not selling Schmitten

because they were not aware of the Schmitten brand, customer has not ask
for the Schmitten brand, while some retailers were not selling Schmitten
because they have better alternative like Cadbury, nestle, Amul, etc.
 CHAPTER
9
RECOMMENDATION
S
 The distributors of the Schmitten were not visiting retailer store
regularly as other brands distributors done so the large stock is out
dated, so the company should create software to keep watch on
retailers stock.
 Company should work on Price, packaging and margin structure by
deciding some strategy and they should make their packaging
attractive.
 As it was found that most of respondents were ready to sell other
brands of Schmitten. Hence, it is recommended to company that they
can offer other brands like Hoppist to retail stores.
 Schmitten was not having good command on promotion of their brand
as like Cadbury so the company should put more emphasis on
promotional activity at regional as well as national level as found from
retailer’s opinion.
 They should also make available small units of Schmitten as a free
sample so that awareness is also created as well as sale can be
increased.
 They should make small units of chocolates with lower price and less
quantity so that every class can afford.
BIBLIOGRAPHY
 Annika Lybeck, Maria Holmlund-Rytko¨ Nen &Maria Saaksja RVI. "Store
Brands vs. Manufacturer Brands:Consumer Perceptions and Buying of
Chocolate Bars in Finland." The International Review Of Retail Distribution
And Consumer Research (2006): 471-492.

 B.V.Sangvikar, Hemant J. Katole. "A study of consumer purchase behavior

in organized retail outlets." Journal of Business and Retail Management
Research (JBRMR) (2012): 39-47.

 Bhagwan Singh, Dr. Anjaney K. Pandey. "A Literature Study On Trends In

Retail Practices And Their Impact On Traditional Retailing In India."
international journal of management research and development (n.d.).

 Bhatt, Himanshu. Swisschocolatenowmadeinsurat. 23 octomber 2013.

http://m.timesofindia.com/city/surat/Swiss-chocolates-now-made-in-
Surat/articleshow/24564340.cms.

 Fazlollah Kazemi, Malihe Esmaeili. "The Role of Media on Consumer

Brand Choice of chocolate industry." International Journal of Business
andManagement (2010): 147-154.

 Justin Beneke, Victoria Floyd, Caroline Rono & Kimryn Sherwood.

"Chocolate, Colour and Consideration: An Exploratory Study of Consumer
Response to Packaging Variation in the South African." Consumer
Response to Packaging Variation in the South African (2014): 55-65.

 Koroth, Dr. Abdul Assis. "The Influence Of Demographics On The

Perception Level Of Multilevel." The Internationaljournalofmanagement
(2013): 1-15.

 Kuznetsova, L.S. Thefreedictionary. n.d.

(http://encyclopedia2.thefreedictionary.com/Confectionary+industry).

 Ms.Parul Mittal, Dr. Ravinder. academia.edu. september 2012.

(https://www.academia.edu/6498824/Consumer_buying_Behaviour_and_
Perception_towards_choco;ate_brands_and_its_consumption).

 Prof. Ray Titus, Dr. Debashish Sengupta, Ms. Alankrita Garg. "Leveraging
Distribution Networks For Competitive Advantage: A Case Of Fmcg
 Channel Management At Itc Ltd."
AsiaPacificJournalofMarketing&ManagementReview (2013): 76 -86.

 walia, shelly. indians arechocolate addictsbutstill suckers for tradition. 16

february 2015. (http://qz.com/345055/indians-are-chocolate-addicts-but-
still-suckers-for-tradition/).

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Organic Cacao Market." Dissertations and Doctoral Studies (2015): 1-121.
 ANNEXURE

1. Since how long you are running the retail store?

[ ] less than 1 year [ ] 1-3 years
[ ] 3-5 years [ ] 5-7 years
[ ] more than 7 years
2. Which brands of chocolates do you keep in your store?
[ ] Cadbury [ ] Kit Kat
[ ] Amul [ ] Snickers
 [ ] Schmitten [ ] Hoppits
[ ] 5-star [ ] Munch
[ ] Perk [ ]
Others………………………………..
3. Have you ever sold Schmitten as a brand of chocolate?
[ ] Yes [ ] No
If Yes than go to question no.: 4
If No than go to question no.: 12
4. Describe your selling experience of Schmitten on following criteria
and scale:
Particulars Very Good Average Poor Very
good Poor

Product Awareness

Consumer acceptance

Product quality

Product taste

Price

Packaging

Margin

5. Compare the brand of Schmitten along with available brands of

chocolate on following scale:
Particulars Cadbury Schmitten Nestle Amul Mars

Quality of product

Product variants

Good in taste

Attractive package
design
Small units

Price

Service of distributors
Promotional offers

6. Which of the following chocolates brands do you prefer to sell among

customer on following scale:
[5 - Mostly Preferred, 4 - Preferred, 3 - Neutral, 2 - Less Preferred, 1 - Not
Preferred]
Particulars 5 4 3 2 1

Cadbury Dairymilk

Nestle Kit Kat

Schmitten

Amul

Mars

7. Share your overall experience of selling Schmitten on following scale:

[ ] Very satisfactory [ ] Satisfactory
[ ] Neutral [ ] Dissatisfactory
[ ] Very dissatisfactory
8. How long do you see yourself associated with the Schmitten brand?
[ ] I will always sell as long as Schmitten brand is available.
[ ] It depends on brand performance in coming time.
[ ] I cannot commit long time.
9. Are you willing to sell other products of Schmitten?
[ ] Yes [ ] No
10. Will you recommend others to sell Schmitten brand?
[ ] Yes [ ] No
[ ] Can’t say
11. Do you find any scope of improvement in Schmitten?
[ ] Yes [ ] No
If yes than in which area,
[ ] Package Design [ ] Taste
[ ] Price [ ] Margin structure
[ ] Promotional activity [ ] After sales services
[ ] Service of distributor
 12. Why have you not sold the Schmitten yet, state the reasons:
[ ] I was not aware about the brand of Schmitten.
[ ] Nobody has ask me about the Schmitten.
[ ] I find better alternative brands of chocolate.
[ ] I find less margin compare to other brand.
[ ] If other please specify………………………………………
13. If company able to work on above mentioned issues, will you be
ready to sell Schmitten from your store?
[ ] Yes [ ] No
[ ] Can’t say
14. Would you like an executive from Schmitten to contact you for the
same?
[ ] Yes [ ] No
[ ] Can’t say
Personal Profile
Retail Store Name:
………………………………………………………………………...…
Contact No : …………………………E mail:
………………….…………………..
Type of Store : ………………………… Area:
………………………………………