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MARKETING MANAGEMENT
AT
Lonavala-410405
JULY 2019
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INSTITUTE FOR FUTURE EDUCATION,
ENTREPRENEURSHIP AND LEADERSHIP
Certified that this project report “RETAIL MARKET WORK HYGIENE AND
COMPETITION BENCHMARKING ON SCHEMES, PROMOTIONS,
PAYOUT AND BENEFITS.” is the bonafide work of “MANAS DINESH JAIN”
who carried out the project work under my supervision.
Certified that this project report “RETAIL MARKET WORK HYGIENE AND
COMPETITION BENCHMARKING ON SCHEMES, PROMOTIONS,
PAYOUT AND BENEFITS.” is the bonafide work of “MANAS DINESH JAIN”
who carried out the project work under my supervision.
I would like to gratefully acknowledge the contribution of all the people who took active part and provided
valuable support to me during the course of this project. To begin with, I would like to offer my sincere
thanks to Mr. Atul Kumar, RSDM Mumbai, PVMI, for giving me the opportunity to do my summer
training at Perfetti Van Melle India Private Limited. ‘Without his guidance, support and valuable
suggestions during the research, the project would not have been accomplished.
My heartfelt gratitude also goes to the entire Regional Sales Team (WEST) especially, Nagpur area
Sales Team for their co-operation and willingness to answer all my queries, and provide valuable
assistance.
I also sincerely thank Prof. Rudresh Agaskar, my faculty mentor at iFEEL, who provided valuable
suggestions, shared his/her rich corporate experience, and helped me script the exact requisites.
Last, but not least, I would like to thank all Dealers/Customers/company etc* (whichever is applicable) for
sharing their experience and giving their valuable time to me during the course of my project.
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TABLE OF CONTENT
Table of Contents
“RETAIL MARKET WORK HYGIENE AND COMPETITION BENCHMARKING ON SCHEMES,
PROMOTIONS, PAYOUT AND BENEFITS”.............................................................................................1
MARKETING MANAGEMENT...............................................................................................................................1
AT 1
Regional Sales............................................................................................................................................................3
Development Manager...............................................................................................................................................3
ACKNOWLEDGEMENT..............................................................................................................................5
TABLE OF CONTENT.................................................................................................................................6
LIST OF ABBREVIATION..........................................................................................................................7
EXECUTIVE SUMMARY............................................................................................................................8
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LIST OF ABBREVIATION
Perfetti Van Melle is a privately owned company, producing and distributing candies and
chewing gums in more than 130 countries worldwide.
The company was established in March 2001.through the merger of Perfetti S.P.A and Van
Melle NV.
In July 2006, the group acquired the Spanish company Chupa chups, thus strengthening its
position as the third largest confectionery (sugar confectionery + gums) group in the world,
and becoming the first player in the global sugar confectionery market.
It is now the third largest confectionery group in the world, and the first to be present in the
main Asian market. Employing over 14000 people and operating 32 companies throughout
the world. Perfetti Van Melle has a true global reach: it is present in the Asia pacific region,
Europe, Middle East, Africa, and the America. Its corporate headquarters are located in
Lainate (Italy) and in Breda (the Netherlands). Several of its brands are household names
and are much loved throughout the 5 continents.
Mentos, Frisk, Fruittella, Alpenliebe, Happydent, Vivident, Big Babol, Chupa Chups, and
Smint.
In addition to these global brands, Perfetti Van Melle offers a wide range of products, the
popularity of which is rooted in individual, local, and regional markets. The ability to
develop products, versions, and flavors, that suit the different demands and opportunities of
the local market is indeed one of the group’s key to success.
Perfetti Van Melle’s innovations provide ample proof of the effectiveness of its product
customization strategy and its attention to consumer demand. In many Asian countries,
Alpenliebe is produced with formulas, packaging and formats that vary according to local
preferences, making it the market leading candy. In the most highly developed European
markets, Perfetti Van Melle offers a wide and varied range of brands, with highly
distinctive qualities and characteristics, like that of functional chewing gum, still
unmatched by its largest international competitors. In America, Mentos, the Group’s no.1
brand, is distributed in a range of exclusive varieties, taking full advantage of the market’s
specific and enormous and potential.
HISTORY
Perfetti Van Melle Italy was incorporated in 1946 by the two Perfetti brothers Ambrogio
and Egidio, in a small town called Lainate just outside of Milan. Perfetti Van Melle is the
world’s third largest confectionery group with its presence in over 150 countries worldwide
Perfetti S.p.A. acquired Van Melle N.V. in March 2001, which was an important step for
the Group to strengthen its position in the market, expand the product propositions and
increase the dominance across markets. Perfetti entered the
Indian market in 1994 by offering its first brand Center Fresh, followed by Big Babol and
Alpenliebe in 1995.
Perfetti Van Melle India Pvt. Ltd. (PVMI) is a renowned manufacturer, distributor and
marketer of several high quality sugar confectionery products. With close to a 25% market
share, it is the leading player in the organized confectionery business in India today. The
company has a diverse portfolio of brands across segments (i.e. candies, gums & chewies)
which it sells through various retail channels across the country. As a marketer, PVMI has
always been known for its iconic, eyeball grabbing and entertaining advertising. PVMI is a
fully owned subsidiary of the global confectionary conglomerate Perfetti Van Melle,
headquartered in Lainate, Italy and Breda (the Netherlands).
MISSION
We at PERFETTI VAN MELLE:
Develop, manufacture and market high-quality and innovative
Products for our consumers through the efficient use of our resources and in
collaboration with our business partners;
Create a fulfilling workplace for our employees built on trust, mutual respect, and
appreciation of their diversity;
Value the role we play in our communities, as a socially and environmentally
committed organization;
Generate economic value through superior growth and profitability. Continuous
focus on these principles will lead us toward Our Vision.
VISION
We will enhance our world leadership in confectionery by creating value for consumers
through innovative and gratifying high-quality products.
Company’s Values
Living the Perfetti Van Melle values requires courage, vision, trust, commitment, and
pragmatism.
The following values guide the actions in realizing the mission of the company:
Integrity Without Compromise-
Perfetti Van Melle conducts the business with honesty, integrity, and respect for
those with whom they have relationship.
Achieving Excellence-
Perfetti Van Melle pursues quality in everything they do. They strive for continuous
improvement in the way they operate.
Dedication to the Consumer-
Perfetti Van Melle will meet and surpass the differing needs and expectations of our
consumers, delighting them with high quality, state-of-the-art and innovative
products.
Care for the people-
Perfetti Van Melle are committed to creating a global workplace where teamwork,
involvement, open communication, flexibility and fun exist.
They treat the people fairly; they value different styles, skills, experiences, and
backgrounds and acknowledge that these differences result in greater creativity and
better insights. They encourage them to take initiative and expect them to approach
their jobs with passion and commitment. They offer their people the training
opportunities and ongoing development so that each individual can reach his or her
full potential.
Social and environmental Responsibility-
Perfetti Van Melle conduct the business as responsible members of society,
respecting the laws of the countries in which they operate, contributing to the
progress of the local communities in line with the legitimate role of the business.
They will operate safely, responsibly and with sound environmental practices,
aimed at minimizing the impact on the environment and working toward long-term
sustainability.
Independence-
Perfetti Van Melle is committed to achieving ambitious business goals while securing our
company’s profitability thus ensuring their independent growth.
CHAPTER 2
PRODUCT PORTFOLIO
Perfetti Van Melle classifies its confectionary portfolio into seven broad categories based
on the type of product they are. These categories are explained below.
Candies:
Jellies:
Gum:
Eclairs:
Hard Mints:
Soft Mints:
Lolli Pops:
The Manufacturing processes of Perfetti Van Melle India Private Limited are carried out in the three
manufacturing locations (Manesar, Chennai, and Rudrapur Plant) with specific product ranges.
The manufacturing activities are carried out under controlled conditions:
The product characteristics, specifications of material at various stages and acceptance criteria are
unambiguously defined, documented and suitably compiled.
The critical activities bearing significant role in the output quality are executed following well-
defined Work Instructions.
Suitable and necessary automated or semi-automated machinery & facilities are utilized.
Pre-defined sampling and test / inspection norms and schemes along with specific devices for
monitoring / measurement are carried out.
Product Release is done on the basis of in-process checks, norms and controls.
The quality of output is controlled by suitable batch making, in-process sample testing, process monitoring
etc. take care of the necessary output quality.
CHAPTER 3
OBJECTIVE OF STUDY
The objective of this report can be viewed from two perspectives. They are:
1. Broad Objective
2. Specific Objective
Broad Objective
The expansive goal of this internship is to understand the working of Perfetti Van Melle and
pitching product range to our potential customers through schemes, promotion and benefits
and tap the uncovered market share. All this training helped me to deliver marketing
strategies and tactics in real time market situation.
Specific Objective
The confectionery market in India is valued at $1.5 billion, growing at a two-year CAGR of
9%, as per Nielsen India. Various reports suggest that India is the fastest growing
confectionery market among the BRIC countries. Indian consumers look for the most fun
and enjoyable products. This means manufacturers need to innovate with new and novel
shapes, textures, flavours and packs. The Indian candy market is divided into three main
categories — Sugar candy, Chocolate candy and Gum candy on the basis of type, region
and competitors.
With flavour and pricing being the most important factors in the category, companies have
tried to capture audiences and play by their own rules. Over the last few years, many have
observed an increase in purchase of the wholesale confectionery bags priced at Rs 50 and
Rs 100, which is a trend that is likely to continue. According to a report by Research and
Markets, metros such as Delhi/NCR, Mumbai, Hyderabad, Bengaluru, Chandigarh, Chennai
and Kolkata are amongst the leading demand generators of candies in the country, while tier
II cities have also been contributing.
What is worth noting is that today, most candy segments target not just children, but
youngsters as well. To expand their horizons, many have moved beyond advertising in
children’s books and traditional mediums too.
Major Competitors of Perfetti Van Melle India
Food Store
Most of the items in the store are food products.
Pan Shops
They are stores which sell Pan and Tobacco.
Chemist
Stores which sell medicines, pharmaceutical items and other toiletries are categorised into
Chemist shops.
Others
Outlets which do not fall in any of the above criteria, fall in this category. Common
examples include Stationery shops, Telecom recharge shops, Xerox shops etc.
Market Classification
Urban Market (DBSM & DSE)
Semi-Urban Market – Neo City
Rural Market
Pipeline management
(Pipeline management is inventory norms)
Super Stockist (SS) -15 days
ROU distributor -15 days
GOTM -7 &12 Days
Sales Working
Morning Meeting
The day’s task
Sell the Focused brands
Try to bill the unbilled outlets.
Minimum value should be 10000 and at least 23 productive calls should be done.
How much target is achieved and yet to achieve.
Evening Meeting
Discuss all the problems faced during the day, whether the target given in the
morning is completed or not.
Inform DSE about the outlets which are to be added or deleted.
Why the bill of previous beat was cancel.
KPI’s of DBSM
There are 5 factors on which DBSM is ranked:
Productive Call (PC) Average of PC should be at least 23.
Effective Coverage (Eco) Total outlet billed in a month divided by Total Outlets.
Minimum 90% outlet should be billed in a month.
Line Per Call (LPC) Average line sold during the month.
Throughput Average sales per day. It calculated by dividing Total sales
by no. of days worked.
Drop Size Per bill average (value). It is calculated by Total sales per
day divided by total no. of bills.
DBSM Hygiene Factors
Per Day they have to do 23+ Productive call and value should be at least 10,000.
Time spend in market should be 320 mins.
They should take the product folder with them and explain them all products.
They should focus on PPP and new products.
They should not skip the outlet without any valid reason.
They should follow the sequencing and if the sequencing is wrong they should
inform DSE.
They should not use any unfair means to sell the product.
They follow all the norms of the company and work ethically.
Incentives of DBSM
Performance incentives are given to DBSM’s based on two evaluation criteria. The first
method of evaluation is the certification based on Points earned and the second method is
based on the sales value.
Certification by Points
In this method all the DBSMs are given certain points based on two parameters i.e.
(i). Number of lines and (ii). Number of unbilled outlets.
Points Earned 3 2 1
Points Earned 3 2 1
Now, each DBSM is given a certificate based on the total points earned by him during a
month. And the monthly incentive amount is based on the certificate he/she receives. The
certificates and the incentive amounts are mentioned below.
• Platinum : 6 points – Rs. 3000/month
• Gold : 4/5 points – Rs. 2000/month
• Silver : 2/3 points – Rs. 1000/month
Value Incentives
Apart from the point system the DBSMs are also given incentives based on the sales value
achieved every month. The system is explained as:
• 100% sales target achieved – Rs 3000/month
• Above 104.5 % sales target achieved– Rs 3500/month
Billing Process
When all the calls are over for the day, DBSMs have to come to the DB point and the sync
the HH with the system. They can even upload the bills from HH. Once we have sync the
bills then, the distributor will take out the print out of all. Then a combined summary of all
the bills is generated. Then from DB point, the stock is loaded on the vehicle and delivery is
done. Each vehicle deliver for 3 DBSM. Delivery is done on the same day, the next day or
day after that, according to the area.
Trade Promotion
Trade promotions are basically schemes which are introduced by the company to increase
sales by motivating retail outlet owners by giving gifts for buying certain SKUs. For the
company, the schemes helps them to improve the sales of new products as well as the sales
of focus products. The Trade Promotions are decided by regional sales offices. The schemes
are different for different states. There are many trade promotions schemes that company
launches and some of them are listed below.
Jodi Scheme: Buy Chupa Chup Belt + Chupa Chup Bites and get Rs 15 off.
Buy Chupa Chups GFL and get 4 piece free + 2 TATA Tea Gold pouches free.
Buy Chupa Chup Bites and get a Rs 30 Horlicks Pouch free
Buy Chupa Chup Belt and a sipper free.
Buy Creamfills 600pcs jar and get 3 unique ice tray free.
Buy Just Jelley jumbo jar 1200pcs and get 2 containers free.
Buy new Alpelibe Chatpata and get Rs 20 Colgate Brush free.
EFFICIENCY
Margins
Margin of DB is 5%
Margin of Sub DB is 3.5%
1. Customer code
2. Outlet name
3. Add/ delete/ stay
4. Full Address
5. RE classification
6. Contact person name
7. Mobile no.
8. Jar count
CHAPTER 6
Achievements and contribution to Host Organization
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CHAPTER 7
Application of Theory
Segment People who like to have gum candy mint lollipops or jelly
MARKETING STRENGTHS
Marketing Mix Strategy:-
Product Strategy: - Perfetti has several mouthwatering and heavy selling candies as a part of their Product
portfolio. The quality, packaging and design of the products in almost each range adds one more star to
their credentials.
Price Strategy: - Perfetti has been following the most simplest and the economic pricing strategy right
from the starting. For almost all its products it has been aiming at maximizing its market share by giving
comparatively higher margin and promotional offers to the retailers as compared to its competitors.
Place (Distribution) Strategy: - Perfetti Van Melle’s distribution units have been located at Manesar,
Rudrapur and Chennai. From these units, the distribution is done in four regions, and has branch offices in
Delhi, Mumbai, Kolkata and Banglore to manage sales in the region.
Promotion Strategy: - To consolidate its worldwide market presence, Perfetti has always paid special
attention to advertising, in terms of investments and creativity, as they both play a vital role in the creation
of the product’s personality and market positioning. The most commonly exercised promotional strategy
by Perfetti is Advertising, Events and Experience.
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6.It has a global reach, operates in around 130 countries
7. Effective marketing and advertising strategies for each of its
subsidiary brands
8.Attractive packaging and high product quality
9.One of the largest confectionery maker globally
Weaknesses 1.Most of its products are targeted towards children except for
chlormint like product, so limited consumer base
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Dogs: These are products with low growth or market share.
CHAPTER 8
SUGGESTION
CHAPTER 9
OVERALL LEARNING
The main purpose of internship was to experience real life work settings and use them as great
opportunities to apply my knowledge gained throughout the period of time. It helped me to learn
new skills as well as to master the existing ones, specifically those related to time management,
interpersonal skills, organizational skills, communication skills, negotiation skills etc. Working
here helped me to turn from a nurtured state to a one in which I have much greater control. It
allowed me to prove myself and to begin building my professional network. These are the most
important lessons I have learnt or achieved throughout the last two months of my internship
period-
Customer Satisfaction
Making your customers happy is another key management objective. Whether you work directly with
clients regularly in a service field or you sell products in an online store, achieving a fruitful relationship
with your customer is an extremely important goal for you to set as the manager.
Increased Profit
Another ongoing goal you should have as a manager is increasing your profits in each period, whether you
track this information on a weekly, monthly, quarterly or yearly basis. Keep in mind that maximizing profit
is a matter of keeping your costs down while increasing sales
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Communication, inter-personal skills during internship
Gathered new technical skills and added to my knowledge base while gaining
confidence in my capabilities.
Got opportunity to practice communication and teamwork skills.
Achieved industry knowledge first hand from the organization and its professionals.
It provided me necessary evidence that I have initiative, am reliable, and have a sense
of responsibility
Applied many of the ideas learned in university and provided a bridge between
university and the professional world
Achieved a sense of accomplishment by creating value for the organization
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Pysz, K. S.-W. (September 2016). Sustainable Business Development Through Leadership in SMEs.
ResearchGate, 57-69.
Rensburg, M. J. (june 2010). Dimensions of Advertising Agency Client Satisfaction. Journal
of Contemporary Management, 549-573.
Sathya, P. (February 2017). A Study on Digital Marketing and its Impact. International Journal
of Science and Research (IJSR), 866-868.