Keventer Agro Market Analysis

Keventer Agro Market Analysis ABSTRACT Most producers do not sell their goods directly to final users. They design a multi-channel system to reach them. The design of marketing channel, that acts, as a strong interface, can provide competitive advantage to a firm in the industry. By contrast the absence of a good distribution network can also be a major fiasco in todays cutthroat competitive world. Marketing channel decisions are the most critical ones facing the marketing management today. It is complex and the complexity further gets compounded by the fact that the channel system take time to build usually years. Channel partners are not owned by the company in most cases. The sales force plays a crucial role in getting the best out of marketing channel. Integrating the efforts of channel partners and sales efforts within the whole marketing effort becomes crucial towards achieving organizational goals. Food and beverage giant Parle had entered into a franchisee agreement with Keventer Agro, for Keventer Agro to manufac ture, package, distribute and market its well-known brands namely Frooti -a popular mango drink, Appy and Appy Fizz-the in-style apple drinks and Bailley Packaged Drinking Water mostly in the eastern parts of India. The project Study of the distribution channel and market analysis of the products distributed and marketed by Keventer Agro under the license of Parle Agro involves the study of the strategies undertaken by Keventer Agro to distribute and market products of Parle Agro which includes Parles HIPPO Parle Agro forayed into snacks with the launch of Hippo, in line with the companys vision of becoming a major player in the foods and beverages industry. Hippo is a player of the snack food industry of India. As per an industry estimate, the branded and organized snack food segment dominated by major players such as Frito Lay, Con Agra, Kelloggs, Marico, Dabur, HLL, ITC, Parle, Haldirams. Thus, the study mainly constituted of studying and analyzing the distribution channel of Hip po and doing a market analysis of the product with respect to pricing, competition, brand awareness and consumer behavior of Hippo its present market position in relation to the well known established brands through retailer and consumer survey. Questionnaire, Schedule and interview and observation methods have been used in conduction of surveys. After completion of analysis of data collected through various methods regarding the sales and distribution and market position and other strategies proper conclusions can be drawn about the awareness and market strength and potential of Parles Hippo. These conclusion and deductions will help Keventer Agro to make any possible changes that would be feasible for the sustenance of the brands and any measure that will increase the market penetration of the brands Introduction The Project Study of the distribution channel and market analysis of the of the products distributed and marketed by Keventer Agro under the license of Parle Agro involves the study of the strategies undertaken by Keventer Agro to distribute and market Parle Hippo Keventer Agro: The Company Keventer Agro Limited is a subsidiary of Keventer Group which has been operating years in the Food Processing Industry in India for more than 125 years. Keventer exports Alphonso Mango Pulp, Totapuri Mango Pulp, Guava Pulp, Sweetened Alphonso Mango Pulp, Mango Pickle, Sesame Seed, Cashew Nuts, Peanuts, Cumin Seed, Fennel Seed, Fenugreek, Coriander Seed, Bakery Ingredients, Fruit Jams, Tutti Fruiti, Red Chilies Button Mushrooms etc. to various countries. Keventer Agro Ltd. (KAL) was established in the year 1986. The division exports food products such as Mango Pulp, Guava Pulp, Sesame Seeds, and Bakery Ingredients to various customers across the globe. In no time, it earned the coronet of being the first to i ntroduce aseptic packaging in the beverage category (a high-end packaging procedure that preserved the natural goodness of drinks in hygienic packs). The Group entered into a franchisee agreement with the food and beverage giant -PARLE to manufacture, package, distribute and market its well-known brands namely FROOTI -a popular mango drink, APPY and APPY FIZZ- the in-style apple drinks and BAILEY PACKAGED DRINKING WATER mostly in the eastern parts of India. In late 2010, Parle Agro inked another agreement with Keventer Agro to set up a plant at Barasat. This new unit manufactures Parle Agros snack brand Hippo. Besides manufacturing, Keventer is also responsible for marketing, sales and distribution of Hippo. Parle Agro chose to partner Keventer for their range of food brands which w.ll h.l. them to expand Hippos market share in the eastern part of India. Parle Agro: The Company Parle Agro is a household name in the beverages industry and has leading brands like Frooti, Appy, Appy Fizz and packaged drinking water, Bailley. A pioneer in the Indian industry, Parle Agro were the first to introduce fruit drinks in tetra packaging, first to introduce apple nectar and the first to introduce fruit drinks in PET bottles. In 2007, Parle Agro forayed into foods with the launch of two confectionery brands, Mintrox mints and Buttercup candies. This was soon followed by two more brands Buttercup Softease and Softease Mithai. Recent beverage products from Parle Agro include Saint Juice, LMN and Grappo Fizz. In 2009, Parle Agro forayed into snacks with the launch of Hippo, in line with the companys vision of becoming a major player in the foods and beverages industry. The snack brand Hippo, was launched in the western region starting with Maharashtra and then it was soon rolled out nationally. Parle Agro commenced operations in 1984. Starting with o nly beverages and diversifying to include bottled water in 1993 and confectionery in 2007. Frooti was the first product that was rolled out of Parle Agro in 1985. It went on to become Indias favourite mango drink. It still has a leading market share. Parle Agro Pvt. Ltd operates under three business vertical Beverages fruit drinks, nectars, 100% Juice, sparkling drinks, Water Packaged Drinking Water and Foods confectionery, snacks Product Industry Overview Product: HIPPO Parle Agro forayed into snacks with the launch of Hippo, in line with the companys vision of becoming a major player in the foods and beverages industry. Hippo is a toasted bread snack. Its ingredients include wheat flour, edible vegetable oils, seasoning mix, corn starch, sugar, raising agent, milk solids, salt, emulsifier, yeast extract powder, instant yeast. It contains added natural color and added natural identical flavoring substances; but no added MSG, no GMO and no Trans Fat. It comes in two variant; Hippo Munchies and Hippo Round-Round. The Hippo Munchies comes in 7 flavours (Chinese Manchurian, Hot-n-Sweet Tomato, Thai Chilli, Yoghurt Mint Chutney, Italian Pizza, Indian Chatpata and Arabian Salted) and Hippo Round-Round comes in 5 flavours (Punjab Da Pickle, Gujrati Mango Chatni, Shillong Noodle Masala, Goan Butter and Garlic, Firangi Cheese n Spice). It is available in three sizes which are priced at Rs 5, Rs 10 and Rs 20. Snack Industry: Industry to which Hippo belongs Hi ppo is a player of the snack food industry of India. The Indian snack industry is one of the largest when considered in the global level. With rising standard of living, people are more resorting to snacks items during breakfast, supper or any time; snacks most often take the place of meals. Right from production, using up, export and growth prospects owing to emerging markets, increasing demand, and incorporation of latest technologies, the snack industry in India has witnessed a dramatic change. Ready-to-eat foods, samosas, kachoris, namkeen, chips, are few of the snacks that are most preferred by Indians. Given the rising demand, the snack industry is going to witness further growth in the future. The snacks food industry in India can broadly be categorised into three segments staple (biscuits category), traditional (namkeens) and ready-to-eat packaged snacks (chips / crisps). The snack food market in India is $3 billion; with the organized segment accounting for almost half of the market share and growing at rate of 15 to 20 percent per year. A growing economy, changing lifestyles, rise in disposable incomes and preference for quality products of U.S. origin will continue to fuel growth of imported U.S. snack food items in India. As per an industry estimate, the branded and organized snack food segment dominated by major players such as Frito Lay, Con Agra, Kelloggs, Marico, Dabur, HLL, ITC, Parle, Haldirams, Nestle, Britannia, Cadbury, Bikano and Balaji is estimated to grow by 15 to 20 percent per year; whereas the growth of un-branded snack food is likely to grow modestly at 8 percent per year in the near future. Frito-Lay India led sweet and savory snacks with a retail val ue share of 46% in 2009. The companys Kurkure, Lehar and Lays Stax offerings have helped it to consolidate its leadership during the year. Haldiram Foods International Ltd and ITC Ltd remained the second and third ranked players respectively. Products like Hippo claim to be made from healthier ingredients than chips/crisps. With Indian consumers becoming more health conscious and more inquisitive about the ingredients in their food, sweet and savory snacks will witness an increase in products which are positioned as better for you and healthier snacks. Objectives of the Project To execute a qualitative study on the trend of packaged snack industry To gauge the acceptance of baked and healthy-snacks To understand competitors strategy in the market To study the sales and distribution structure, pricing (both to the retailer and to the consumer) of Hippo and problems in those respected area. To develop marketing strategies for Hippo To analyze the markets and determine the factors responsible for sale of products and provide recommendations about the scope for improvement. To provide a statement of collective responses of the retailersand determine the scope for improvement in the distribution channel for the products and the problems faced by the retailers. To study the pattern of consumer behavior and their awareness towards HIPPO To find out the problems faced by HIPPO if any and suggest solution to address those problems Project Methodology Primary Research is done through market survey. The research is mainly based on: Questionnaire Method Interview Method Observation Method Secondary Research has also been used as a supporting tool like: Some of the data related to holistic picture of the industry has been gathered from the data available on the internet PROJECT PROFILE The project revolves around Parle Hippo distributed and marketed by Keventer Agro under the license of Parle Agro. The first stage constituted of mainly studying and analyzing the distribution channel of Hippo and doing a market analysis of the product with respect to pricing, competition, brand awareness and consumer behavior of Hippo through retailer and consumer survey As per the objective of the project, two sets of questionnaire were prepared; For the retailer which aimed to assess the availability of Hippo, pricing of Hippo, sales, defect handling and some financial aspect of Hippo viz. Its competitors and the other for the consumers. For the consumer which aimed to gauge awareness of the product and the brand, product acceptance, their choice of product and buying pattern. The second stage constituted of observing the total sales procedure which consists of division of product, division of area, selective loading, selling, collection and submission STAGE ONE: RETAILER SURVEY FOR HIPPO This stage involved daily visits from the stock points to the designated markets. The markets covered includes: Salt Lake, Lake Town, S.K. Deb Road Market, Nagerbazar, Mrinalini Cinema Hall Market, New Market, Ultadanga, Kankurgachi, Bagmari, Beadon Street , Aurobindo Road and Vivekananda Road area, Shyambazar, Rajballavpara Baghbazar. Every shop that kept branded snacks in the respective areas was approached. The initial plan was to conduct the survey through questionnaire method but while performing the survey the method had to be changed to schedule, observation and interview method as it was not convenient for the retailers to fill up the questionnaire Objectives of Survey by observation method Findings to be recorded through observation method included: The visibility of Hippo and of competitors product Mode of stocking/displaying Hippo and competitors products i.e. whether it is on shelve or in the basket or inside almirah The location of the store i.e. whether it is beside main road or inside a lane or on a square Type of store Approximate demography Objectives of Survey by schedule method Findings to be recorded through schedule method included: About Hippo: Whether he keeps Hippo or not, if not the reason, its availability, reorder period, quality of defective product handling, margin offered, supply of banners and danglers. About Competitor: The competition brand kept, approximate margin they offer. About the market as a whole: The most selling brand. Objectives of Survey by interview method The interview methodology aimed to gain the intrinsic details of the market functions such as; if the retailer does not keep Hippo would he like to keep it future, the credit policy, frequency of visit of sales representative, retailers view on Hippos marketing strategy and scope of improvement. STAGE TWO: TOTAL SALES PROCEDURE OBSERVATION Distribution structure of Keventer Agro for Hippo Keventer Agro has 2-level consumer marketing channel. i.e. Manufacturing Unit>Distributor>retailer>Consumer. The product is manufactured in their plant located in Barasat. The products are sold directly to distributors on cash. A sales representative is appointed to the distributor by Keventer, who represents Keventer Agro and works shoulder to shoulder with the distributor. Level 1 Manufacturing unit to distributor The distributor buys the product in cash and the price of the free products which are part of below the line promotional activity are reimbursed on the claim made by the distributor. The transportation charge is borne by the distributor. Division of product and appointment of distributors: The aim of the company is: To ensure not only the highly profitable established products, but also new products with low initial sales reaches the end of supply chain. To ensures that all the SKUs of different products end up in the racks of retailers. Parle Agro has wide and deep product line; it is difficult for a single distributor to manage all the products. Earlier, Hippo was supplied to all the distributors of a specific area but as coordination became difficult, they have changed their policy and now supplies only to one distributor of the specific area. In some distribution area Keventer appoints more than one distributor each having different divisions of product. The division of products includes: Division A Division B Division C (Full information about this division is not known since I never had the chance to work in this divison) 200 ml, 400 ml, 1.2 litre of Frooti 160 ml 500 ml 1.5 litre and 2 litre of Frooti 200 ml of Appy 500 ml, 1 litre, 2 litre of Bailley Packaged Drinking Water 100 ml, 250 ml of Frooti 200 ml of LMN 600 ml of Bailley Soda. 300 ml, 500 ml and 1 litre of Appy Fizz The strategy of division of product along with division of distributor is adopted due to the reason discussed above. Level 2 Distributor to retailer Each distribution area is divided into five different distribution zones. They sell their products to those five zones in five days i.e. Monday to Friday. The sixth day which is Saturday is an extra day in which the sales representative does the miscellaneous work such as: If an order was not delivered on the due date then that product is delivered on Saturday. They conduct an approximate survey to estimate or forecast the forthcoming weekly demand. If a replacement of defective product was not done on the due date then it is also done in Saturday Hippo along with other product that are in the same division are be loaded in the LCV everyday. The flavours and quantities are not fixed. They load it according to the demand estimation of the zone. For example, on a particular day, more SKUs of Goan Butter and Garlic flavour is loaded more than the average quantity; the reason being from the experience, the sales representative found that when certain flavour/flavours are supplied to some particular area/areas, the retailer has lower re-order period i.e. the flavour/flavours sales more in that area depending on the demography of the area and buying pattern of the consumers. Sometimes the sales representatives are given target. For example: If they can sell 100 cases of Division A products on a particular day which includes Hippo, then they would get some incentive (Rs 250 extra). In that case, Division A products are loaded more, proportionally quantity of Hippo rises. However the elasticity of quantity of loading is low for Hippo compared to Frooti and Appy which are of high selling category. The sales representative finds it easy and handy to sell Frooti and Appy than applying push strategy for Hippo. Sometimes Hippo is not at all loaded in the LCV because the particular market demography could not accept Hippo and is not popular. Selling Each sales representative has different style of selling. Some capitalize on relationship between him and retailer and some on communication skill. Relationship marketing: In this type of marketing procedure, the SR does not start talking business in the first instance; rather he greets the retailer, talk about general things like current affairs or about family which helps him to build a rapport and trust. The trust and rapport becomes the psychological tool to win over the psychology of the retailer making it difficult for the retailer to reject the sales representatives selling proposal. Sometimes the sales representatives shares such good relationship with the retailer s that they dont even ask whether he needs anything or not but directly dump the products and produces the bill. Credit sales are more by this procedure since the SR does not want to freeze the warmth of the relationship. Communication Marketing In this procedure the SR starts talking about the business from the first go. The deliberation of the schemes or price seeks the attention of the retailers. Sales representative convinces the retailers by giving a clear picture of the business model. For example: Suppose the shop is near a school, he would right away say with much conviction that Hippo is bound to sell and with Rs 1.23 margin per piece, it would be a great business for him. He further elaborates on the schemes and produces a very rosy picture. The chances of credit sales are low. The sales representative of Keventer Agro is responsible to write the bill of receipt where he mentions name of the shop, the date, quantity of total product sold and its price. An account of free products is also scribed in the bill. The cash is handled by the distributors representative. Collection It is a process of collecting money for the credit sales made. Usually Keventer does not encourage credit sales. However if any credit sales are made, the credit period is generally 2-3 days or the period till the next order, whichever is earlier. Collection is not so difficult as Hippo is backed by Frooti which has high bargaining power. Submission Both the representatives are required to submit every bills and cash respectively to the stock point/distributor. The cash collected and the sum total of the bill has to tally. Problem identification and its solution: Problem 1: The targets that are set by Keventer for the sales representatives are not dis tinct enough. The target constitutes of only two conditions i.e. name of Division and amount of cases. For example, on a particular day while we were working in certain area with the sales representative, he was given a target to sell 100 cases of Division A product for an incentive of Rs 250. He worked till 8 pm and ultimately reached to the target. However most of the sales were of Frooti and Appy with very little proportion of Hippo. Solution to the problem: Providing target worked well but had skewed portfolio. The target scheme for the sales representatives should be more distinct for example, if the target would have been X cases Frooti, Y cases of LMN, Z cases of Appy and U cases of Hippo of Division A for Rs V then the sales representative would not have capitalized on Frooti and Appy but would have tried to push low moving new brands such as Hippo, Bailley Soda etc. The portfolio of sales would have been varied and would have provided an impetus to the sales of new brands s uch as Bailley Soda and Hippo. Problem 2: Most of the sales activities are done by the company representatives such: Converting potential customer into actual customer in level 1 of distribution structure Bagging re-order from the existing customer Handling defective product Negotiation and persuasion Accounting( bill of receipt) The distributor only provides with infrastructure such as godown, light commercial vehicle(LCV) and a representative. The field work is mostly done by the company representative. Solution to the problem: Initially in a new market, it is quite rationale to capitalize on the market knowledge and relationships of the distributor but while working with sales representatives we found in some areas that the retailers already trust the company representative while the company representative has commanded the knowledge on the respective market. In that scenario Keventer Agro can go for forward integration and move on to 1-level distribution structure which consists of only manufacturer> retail> consumer eliminating the distributor. This would further optimize the profit earned by the company Evaluation of the distribution system of Parle Hippo through statistics This part of data analysis is segmented in to two parts. The first part deals with retailers and the second part deals with the consumer. The first part is further broken up in to two scenarios. The first scenario provides a holistic view of the markets surveyed and the second scenario deals with analysis of the attribute according to the area in which the survey is conducted. Part I (A) -Holistic View of the Markets Surveyed 1. Hippo Stocked The graph below showcases the frequency of the shops who stocks Hippo in their shops. 36.2% of the samples do not keep Hippo, where as 24.6% of the sample use to keep Hippo and the rest however keeps Hippo. So it can be said that there are presently more shops where Hippo cannot be found. Since the percentage of shops that use to keep Hippo is considerably high, we get a negative sales trend here. 9 definite reasons for the low sales turnover have been identified. They are: Some of the shops were never approached by the distributor Some shops are already flooded with competitors product so there are no space to stock Hippo In Some areas, the supply was halted due distributor reappointment and other issues Some shops use to keep Hippo but due to low sales they dont keep it anymore Hippo has a limited credit option, so many retailer finds it difficult to block their money for a new product Some retailer does not keep Hippo due to lack of merchandize provided. Retailers demand shelve and almirah so that they can store and display and also protect from mice but very limited or no merchandize is provided to most of the retailers Some retailers do not keep Hippo because they perceive that it is a new product with low awareness, the market is still not ready to accept the product. Had it been ready, the consumer would themselves ask for it Some retailers complained about poor follow up from the sales team and is the reason for not keeping Hippo Some retailers, who use to keep Hippo complained that the expired stock were not replaced and they have lost faith in Parle Agro The chart provided below showcases the frequency of the reasons discussed above. Interpretations: 32.5% of the shops were never approached by the company. From the qualitative data it has been found that many retailers were positive about keeping Hippo if they were being approached by the company. 12.5% of the shops have no space to keep Hippo. While conducting survey it is found that many shops were flooded with competitor brand leaving no space for Hippo. Out of 24.6% of sample who use to keep Hippo, 11.2% stopped keeping Hippo due sudden halt in supply due to distributor reappointment problem and other associated problems. 8.8% of the samples do not keep Hippo anymore due to its low sales while 2.5% of the samples do not keep Hippo because of the credit policy. The low sales associated with limited credit policy makes it difficult for the retailer to invest in the slow moving stock. 1.2% of sample reported that they do not keep Hippo because Parle Agro do not provide them with almirah or rack as result the products get damaged because of mice. Among the samples who never kept Hippo, 10% of the sample never kept Hippo because no customer demanded for it. They said, they will only keep Hippo when customer starts asking for it. The demand graph is provided below. Among those who use to keep Hippo, 8.8% of sample do not keep it anymore due to bad follow up from the distributor. One of the samples was approached by the distributor ho took order but never delivered the products. The expired date products were never replaced for which 2.5% of the sample does not keep Hippo. The reason for the 8.8% of the shops could not be gauged due to any response from the retailers. 2. Demand of Hippo: The graph below provides a holistic view about the demand of Hippo. 42.7% of the sample said that the demand of Hippo is low while 33.7% of the sample said that the demand is average followed by 23.6% of the sample who said that the demand is high. 3. Reorder period: Among the samples who keep Hippo, 57.6% of the sample orders on a weekly basis, 24.7% orders on a monthly basis, 10.6% on a fortnightly basis and 7.1% of the sample orders twice a week. 4. Most selling Stock Keeping Unit (SKU): 74.1% of the sample reported that the small packs are most selling stock keeping unit (SKU) while 25.9% of the sample reported about the medium pack. 5. Most selling flavour: On an overall analysis, we found that there is very low consistent pattern of choice of flavour. However 21.2% of the sample said that the bluish green pack (Goan Butter and Garlic) sells the most followed by Punjab Da Pickle. 6. Awareness of nutrition facts among retailers: 70.5% of the sample had no idea about Hippo being baked but not fried while that 29.5% of the sample had idea about the health positivity of the product. Among 29.5 % of the samples who are aware of the fact only 2.4% of the samples pitch about it while selling it. 7. Analysis of the margin/profit offered by Hippo and its competitors: The objective is to find whether there is significant difference among the margin offered by three brands i.e. Lays, Bingo and Hippo. In other words, it is a test for difference in distributions (medians) of the margin/profit for the different brands of snacks. Methodology applied is Kruskal-Wallis Test. The null hypothesis H0 = PL = PB = PH and the alternate hypothesis H1 is PL, PB and PH are significantly different. PL = Proportion of retailer to whom Lays provide them with highest margin PB = Proportion of retailer to whom Bingo provide them with highest margin PH = Proportion of retailer to whom Hippo provide them with highest margin The significance level (a) is 0.05. According to the Kruskal-Wallis test, the p-value is as low as zero, so we reject the null hypothesis. So we see that at the a = 0.05 level of significance, there exists enough evidence to conclude that there is significant difference among the three snack brand in terms of the margin/profit provided to the retailer. 8. Factor Analysis: The main applications of factor analytic te (1) To reduce the number of variables and (2) To detect structure in the relationships bet Therefore, factor analysis is applied as a dat The variables taken are: .Supply Quality of Hippo as r .Quality of Product delivered as r .Quality of service(Replacement .Merchandize offered and its a .Margin perceived by the samples .Quality of Hippo as responded by Samples or analytic techniques are: the number of variables and tionships between variables, that is to classify sis is applied as a data reduction or structure detection method. Supply Quality of Hippo as responded by Samples ed as responded by Samples placement and Adjustment) as responded by Samples and its availability as responded by Samples ed by the samples sponded by Samples classify variables. tion method. y Samples The main applications of factor analytic te (1) To reduce the number of variables and (2) To detect structure in the relationships bet Therefore, f actor analysis is applied as a dat The variables taken are: .Supply Quality of Hippo as r .Quality of Product delivered as r .Quality of service(Replacement .Merchandize offered and its a .Margin perceived by the samples .Quality of Hippo as responded by Samples or analytic techniques are: the number of variables and tionships between variables, that is to classify sis is applied as a data reduction or structure detection method. Supply Quality of Hippo as responded by Samples ed as responded by Samples placement and Adjustment) as responded by Samples and its availability as responded by Samples ed by the samples sponded by Samples classify variables. tion method. y Samples From the component plot above it is quite clear that plot above it is quite clear that quality of product, quality of supply and replacement and adjustment constitute one factor while margin of hippo and merchandizing provided constitute the other factor. From the Scree Plot it can be seen that 2 components have Eigen Value more than 1 and they can explain 74.09% of the variation. Part 1 (b) Area wise analysis of the attributes 1. Demand hippo vs Area 70%, 55%, 50% in Lake Town, Shyambazar, Ultadanga respectively consider the demand of Hippo to be low. 72.7% of sample in Salt Lake and 50% of sample in New Market feels the demand for Hippo is average. However 44.4%, 50%, 41.7% of the sample in Nagerbazar, Baisakhi and Ultadanga respectively fell the demand is high over there. 2. Flavour vs area Goan Butter and Garlic flavour is the most liked flavour in Salt Lake. While Punjab Da Pickle is the favourite in Nagerbazar. All the other area has no definite favourite. 3. Area vs Hippo Stocked Cross tabulation Area * Hippo Stocked Cross tabulation Hippo Stocked No Yes Previously Kept Area Salt Lake Count 0 12 0 % within Area .0% 100.0% .0% Lake Town Count 4 3 4 % within Area 36.4% 27.3% 36.4% Nagerbazar Count 2 10 0 % within Area 16.7% 83.3% .0% Baisakhi CK Market Count 3 1 5 % within Area 33.3% 11.1% 55.6% New Market Hogg Market Count 11 0 6 % within Area 64.7% .0% 35.3% Ultadanga, Murari Pukur, Kankurgachi Bagmari Count 13 5 7 % within Area 52.0% 20.0% 28.0% Beadon Road, Aurobindo Road Vivekananda Road Count 13 10 5 % within Area 46.4% 35.7% 17.9% Shyambazar, Baghbazar Rajballav Para Count 4 13 7 % within Area 16.7% 54.2% 29.2% Total Count 50 54 34 % within Area 36.2% 39.1% 24.6% From the cross tabulation above, we see that the penetration of Hippo is excellent in Salt Lake and Nagerbaz Keventer Agro Market Analysis Keventer Agro Market Analysis ABSTRACT Most producers do not sell their goods directly to final users. They design a multi-channel system to reach them. The design of marketing channel, that acts, as a strong interface, can provide competitive advantage to a firm in the industry. By contrast the absence of a good distribution network can also be a major fiasco in todays cutthroat competitive world. Marketing channel decisions are the most critical ones facing the marketing management today. It is complex and the complexity further gets compounded by the fact that the channel system take time to build usually years. Channel partners are not owned by the company in most cases. The sales force plays a crucial role in getting the best out of marketing channel. Integrating the efforts of channel partners and sales efforts within the whole marketing effort becomes crucial towards achieving organizational goals. Food and beverage giant Parle had entered into a franchisee agreement with Keventer Agro, for Keventer Agro to manufac ture, package, distribute and market its well-known brands namely Frooti -a popular mango drink, Appy and Appy Fizz-the in-style apple drinks and Bailley Packaged Drinking Water mostly in the eastern parts of India. The project Study of the distribution channel and market analysis of the products distributed and marketed by Keventer Agro under the license of Parle Agro involves the study of the strategies undertaken by Keventer Agro to distribute and market products of Parle Agro which includes Parles HIPPO Parle Agro forayed into snacks with the launch of Hippo, in line with the companys vision of becoming a major player in the foods and beverages industry. Hippo is a player of the snack food industry of India. As per an industry estimate, the branded and organized snack food segment dominated by major players such as Frito Lay, Con Agra, Kelloggs, Marico, Dabur, HLL, ITC, Parle, Haldirams. Thus, the study mainly constituted of studying and analyzing the distribution channel of Hip po and doing a market analysis of the product with respect to pricing, competition, brand awareness and consumer behavior of Hippo its present market position in relation to the well known established brands through retailer and consumer survey. Questionnaire, Schedule and interview and observation methods have been used in conduction of surveys. After completion of analysis of data collected through various methods regarding the sales and distribution and market position and other strategies proper conclusions can be drawn about the awareness and market strength and potential of Parles Hippo. These conclusion and deductions will help Keventer Agro to make any possible changes that would be feasible for the sustenance of the brands and any measure that will increase the market penetration of the brands Introduction The Project Study of the distribution channel and market analysis of the of the products distributed and marketed by Keventer Agro under the license of Parle Agro involves the study of the strategies undertaken by Keventer Agro to distribute and market Parle Hippo Keventer Agro: The Company Keventer Agro Limited is a subsidiary of Keventer Group which has been operating years in the Food Processing Industry in India for more than 125 years. Keventer exports Alphonso Mango Pulp, Totapuri Mango Pulp, Guava Pulp, Sweetened Alphonso Mango Pulp, Mango Pickle, Sesame Seed, Cashew Nuts, Peanuts, Cumin Seed, Fennel Seed, Fenugreek, Coriander Seed, Bakery Ingredients, Fruit Jams, Tutti Fruiti, Red Chilies Button Mushrooms etc. to various countries. Keventer Agro Ltd. (KAL) was established in the year 1986. The division exports food products such as Mango Pulp, Guava Pulp, Sesame Seeds, and Bakery Ingredients to various customers across the globe. In no time, it earned the coronet of being the first to i ntroduce aseptic packaging in the beverage category (a high-end packaging procedure that preserved the natural goodness of drinks in hygienic packs). The Group entered into a franchisee agreement with the food and beverage giant -PARLE to manufacture, package, distribute and market its well-known brands namely FROOTI -a popular mango drink, APPY and APPY FIZZ- the in-style apple drinks and BAILEY PACKAGED DRINKING WATER mostly in the eastern parts of India. In late 2010, Parle Agro inked another agreement with Keventer Agro to set up a plant at Barasat. This new unit manufactures Parle Agros snack brand Hippo. Besides manufacturing, Keventer is also responsible for marketing, sales and distribution of Hippo. Parle Agro chose to partner Keventer for their range of food brands which w.ll h.l. them to expand Hippos market share in the eastern part of India. Parle Agro: The Company Parle Agro is a household name in the beverages industry and has leading brands like Frooti, Appy, Appy Fizz and packaged drinking water, Bailley. A pioneer in the Indian industry, Parle Agro were the first to introduce fruit drinks in tetra packaging, first to introduce apple nectar and the first to introduce fruit drinks in PET bottles. In 2007, Parle Agro forayed into foods with the launch of two confectionery brands, Mintrox mints and Buttercup candies. This was soon followed by two more brands Buttercup Softease and Softease Mithai. Recent beverage products from Parle Agro include Saint Juice, LMN and Grappo Fizz. In 2009, Parle Agro forayed into snacks with the launch of Hippo, in line with the companys vision of becoming a major player in the foods and beverages industry. The snack brand Hippo, was launched in the western region starting with Maharashtra and then it was soon rolled out nationally. Parle Agro commenced operations in 1984. Starting with o nly beverages and diversifying to include bottled water in 1993 and confectionery in 2007. Frooti was the first product that was rolled out of Parle Agro in 1985. It went on to become Indias favourite mango drink. It still has a leading market share. Parle Agro Pvt. Ltd operates under three business vertical Beverages fruit drinks, nectars, 100% Juice, sparkling drinks, Water Packaged Drinking Water and Foods confectionery, snacks Product Industry Overview Product: HIPPO Parle Agro forayed into snacks with the launch of Hippo, in line with the companys vision of becoming a major player in the foods and beverages industry. Hippo is a toasted bread snack. Its ingredients include wheat flour, edible vegetable oils, seasoning mix, corn starch, sugar, raising agent, milk solids, salt, emulsifier, yeast extract powder, instant yeast. It contains added natural color and added natural identical flavoring substances; but no added MSG, no GMO and no Trans Fat. It comes in two variant; Hippo Munchies and Hippo Round-Round. The Hippo Munchies comes in 7 flavours (Chinese Manchurian, Hot-n-Sweet Tomato, Thai Chilli, Yoghurt Mint Chutney, Italian Pizza, Indian Chatpata and Arabian Salted) and Hippo Round-Round comes in 5 flavours (Punjab Da Pickle, Gujrati Mango Chatni, Shillong Noodle Masala, Goan Butter and Garlic, Firangi Cheese n Spice). It is available in three sizes which are priced at Rs 5, Rs 10 and Rs 20. Snack Industry: Industry to which Hippo belongs Hi ppo is a player of the snack food industry of India. The Indian snack industry is one of the largest when considered in the global level. With rising standard of living, people are more resorting to snacks items during breakfast, supper or any time; snacks most often take the place of meals. Right from production, using up, export and growth prospects owing to emerging markets, increasing demand, and incorporation of latest technologies, the snack industry in India has witnessed a dramatic change. Ready-to-eat foods, samosas, kachoris, namkeen, chips, are few of the snacks that are most preferred by Indians. Given the rising demand, the snack industry is going to witness further growth in the future. The snacks food industry in India can broadly be categorised into three segments staple (biscuits category), traditional (namkeens) and ready-to-eat packaged snacks (chips / crisps). The snack food market in India is $3 billion; with the organized segment accounting for almost half of the market share and growing at rate of 15 to 20 percent per year. A growing economy, changing lifestyles, rise in disposable incomes and preference for quality products of U.S. origin will continue to fuel growth of imported U.S. snack food items in India. As per an industry estimate, the branded and organized snack food segment dominated by major players such as Frito Lay, Con Agra, Kelloggs, Marico, Dabur, HLL, ITC, Parle, Haldirams, Nestle, Britannia, Cadbury, Bikano and Balaji is estimated to grow by 15 to 20 percent per year; whereas the growth of un-branded snack food is likely to grow modestly at 8 percent per year in the near future. Frito-Lay India led sweet and savory snacks with a retail val ue share of 46% in 2009. The companys Kurkure, Lehar and Lays Stax offerings have helped it to consolidate its leadership during the year. Haldiram Foods International Ltd and ITC Ltd remained the second and third ranked players respectively. Products like Hippo claim to be made from healthier ingredients than chips/crisps. With Indian consumers becoming more health conscious and more inquisitive about the ingredients in their food, sweet and savory snacks will witness an increase in products which are positioned as better for you and healthier snacks. Objectives of the Project To execute a qualitative study on the trend of packaged snack industry To gauge the acceptance of baked and healthy-snacks To understand competitors strategy in the market To study the sales and distribution structure, pricing (both to the retailer and to the consumer) of Hippo and problems in those respected area. To develop marketing strategies for Hippo To analyze the markets and determine the factors responsible for sale of products and provide recommendations about the scope for improvement. To provide a statement of collective responses of the retailersand determine the scope for improvement in the distribution channel for the products and the problems faced by the retailers. To study the pattern of consumer behavior and their awareness towards HIPPO To find out the problems faced by HIPPO if any and suggest solution to address those problems Project Methodology Primary Research is done through market survey. The research is mainly based on: Questionnaire Method Interview Method Observation Method Secondary Research has also been used as a supporting tool like: Some of the data related to holistic picture of the industry has been gathered from the data available on the internet PROJECT PROFILE The project revolves around Parle Hippo distributed and marketed by Keventer Agro under the license of Parle Agro. The first stage constituted of mainly studying and analyzing the distribution channel of Hippo and doing a market analysis of the product with respect to pricing, competition, brand awareness and consumer behavior of Hippo through retailer and consumer survey As per the objective of the project, two sets of questionnaire were prepared; For the retailer which aimed to assess the availability of Hippo, pricing of Hippo, sales, defect handling and some financial aspect of Hippo viz. Its competitors and the other for the consumers. For the consumer which aimed to gauge awareness of the product and the brand, product acceptance, their choice of product and buying pattern. The second stage constituted of observing the total sales procedure which consists of division of product, division of area, selective loading, selling, collection and submission STAGE ONE: RETAILER SURVEY FOR HIPPO This stage involved daily visits from the stock points to the designated markets. The markets covered includes: Salt Lake, Lake Town, S.K. Deb Road Market, Nagerbazar, Mrinalini Cinema Hall Market, New Market, Ultadanga, Kankurgachi, Bagmari, Beadon Street , Aurobindo Road and Vivekananda Road area, Shyambazar, Rajballavpara Baghbazar. Every shop that kept branded snacks in the respective areas was approached. The initial plan was to conduct the survey through questionnaire method but while performing the survey the method had to be changed to schedule, observation and interview method as it was not convenient for the retailers to fill up the questionnaire Objectives of Survey by observation method Findings to be recorded through observation method included: The visibility of Hippo and of competitors product Mode of stocking/displaying Hippo and competitors products i.e. whether it is on shelve or in the basket or inside almirah The location of the store i.e. whether it is beside main road or inside a lane or on a square Type of store Approximate demography Objectives of Survey by schedule method Findings to be recorded through schedule method included: About Hippo: Whether he keeps Hippo or not, if not the reason, its availability, reorder period, quality of defective product handling, margin offered, supply of banners and danglers. About Competitor: The competition brand kept, approximate margin they offer. About the market as a whole: The most selling brand. Objectives of Survey by interview method The interview methodology aimed to gain the intrinsic details of the market functions such as; if the retailer does not keep Hippo would he like to keep it future, the credit policy, frequency of visit of sales representative, retailers view on Hippos marketing strategy and scope of improvement. STAGE TWO: TOTAL SALES PROCEDURE OBSERVATION Distribution structure of Keventer Agro for Hippo Keventer Agro has 2-level consumer marketing channel. i.e. Manufacturing Unit>Distributor>retailer>Consumer. The product is manufactured in their plant located in Barasat. The products are sold directly to distributors on cash. A sales representative is appointed to the distributor by Keventer, who represents Keventer Agro and works shoulder to shoulder with the distributor. Level 1 Manufacturing unit to distributor The distributor buys the product in cash and the price of the free products which are part of below the line promotional activity are reimbursed on the claim made by the distributor. The transportation charge is borne by the distributor. Division of product and appointment of distributors: The aim of the company is: To ensure not only the highly profitable established products, but also new products with low initial sales reaches the end of supply chain. To ensures that all the SKUs of different products end up in the racks of retailers. Parle Agro has wide and deep product line; it is difficult for a single distributor to manage all the products. Earlier, Hippo was supplied to all the distributors of a specific area but as coordination became difficult, they have changed their policy and now supplies only to one distributor of the specific area. In some distribution area Keventer appoints more than one distributor each having different divisions of product. The division of products includes: Division A Division B Division C (Full information about this division is not known since I never had the chance to work in this divison) 200 ml, 400 ml, 1.2 litre of Frooti 160 ml 500 ml 1.5 litre and 2 litre of Frooti 200 ml of Appy 500 ml, 1 litre, 2 litre of Bailley Packaged Drinking Water 100 ml, 250 ml of Frooti 200 ml of LMN 600 ml of Bailley Soda. 300 ml, 500 ml and 1 litre of Appy Fizz The strategy of division of product along with division of distributor is adopted due to the reason discussed above. Level 2 Distributor to retailer Each distribution area is divided into five different distribution zones. They sell their products to those five zones in five days i.e. Monday to Friday. The sixth day which is Saturday is an extra day in which the sales representative does the miscellaneous work such as: If an order was not delivered on the due date then that product is delivered on Saturday. They conduct an approximate survey to estimate or forecast the forthcoming weekly demand. If a replacement of defective product was not done on the due date then it is also done in Saturday Hippo along with other product that are in the same division are be loaded in the LCV everyday. The flavours and quantities are not fixed. They load it according to the demand estimation of the zone. For example, on a particular day, more SKUs of Goan Butter and Garlic flavour is loaded more than the average quantity; the reason being from the experience, the sales representative found that when certain flavour/flavours are supplied to some particular area/areas, the retailer has lower re-order period i.e. the flavour/flavours sales more in that area depending on the demography of the area and buying pattern of the consumers. Sometimes the sales representatives are given target. For example: If they can sell 100 cases of Division A products on a particular day which includes Hippo, then they would get some incentive (Rs 250 extra). In that case, Division A products are loaded more, proportionally quantity of Hippo rises. However the elasticity of quantity of loading is low for Hippo compared to Frooti and Appy which are of high selling category. The sales representative finds it easy and handy to sell Frooti and Appy than applying push strategy for Hippo. Sometimes Hippo is not at all loaded in the LCV because the particular market demography could not accept Hippo and is not popular. Selling Each sales representative has different style of selling. Some capitalize on relationship between him and retailer and some on communication skill. Relationship marketing: In this type of marketing procedure, the SR does not start talking business in the first instance; rather he greets the retailer, talk about general things like current affairs or about family which helps him to build a rapport and trust. The trust and rapport becomes the psychological tool to win over the psychology of the retailer making it difficult for the retailer to reject the sales representatives selling proposal. Sometimes the sales representatives shares such good relationship with the retailer s that they dont even ask whether he needs anything or not but directly dump the products and produces the bill. Credit sales are more by this procedure since the SR does not want to freeze the warmth of the relationship. Communication Marketing In this procedure the SR starts talking about the business from the first go. The deliberation of the schemes or price seeks the attention of the retailers. Sales representative convinces the retailers by giving a clear picture of the business model. For example: Suppose the shop is near a school, he would right away say with much conviction that Hippo is bound to sell and with Rs 1.23 margin per piece, it would be a great business for him. He further elaborates on the schemes and produces a very rosy picture. The chances of credit sales are low. The sales representative of Keventer Agro is responsible to write the bill of receipt where he mentions name of the shop, the date, quantity of total product sold and its price. An account of free products is also scribed in the bill. The cash is handled by the distributors representative. Collection It is a process of collecting money for the credit sales made. Usually Keventer does not encourage credit sales. However if any credit sales are made, the credit period is generally 2-3 days or the period till the next order, whichever is earlier. Collection is not so difficult as Hippo is backed by Frooti which has high bargaining power. Submission Both the representatives are required to submit every bills and cash respectively to the stock point/distributor. The cash collected and the sum total of the bill has to tally. Problem identification and its solution: Problem 1: The targets that are set by Keventer for the sales representatives are not dis tinct enough. The target constitutes of only two conditions i.e. name of Division and amount of cases. For example, on a particular day while we were working in certain area with the sales representative, he was given a target to sell 100 cases of Division A product for an incentive of Rs 250. He worked till 8 pm and ultimately reached to the target. However most of the sales were of Frooti and Appy with very little proportion of Hippo. Solution to the problem: Providing target worked well but had skewed portfolio. The target scheme for the sales representatives should be more distinct for example, if the target would have been X cases Frooti, Y cases of LMN, Z cases of Appy and U cases of Hippo of Division A for Rs V then the sales representative would not have capitalized on Frooti and Appy but would have tried to push low moving new brands such as Hippo, Bailley Soda etc. The portfolio of sales would have been varied and would have provided an impetus to the sales of new brands s uch as Bailley Soda and Hippo. Problem 2: Most of the sales activities are done by the company representatives such: Converting potential customer into actual customer in level 1 of distribution structure Bagging re-order from the existing customer Handling defective product Negotiation and persuasion Accounting( bill of receipt) The distributor only provides with infrastructure such as godown, light commercial vehicle(LCV) and a representative. The field work is mostly done by the company representative. Solution to the problem: Initially in a new market, it is quite rationale to capitalize on the market knowledge and relationships of the distributor but while working with sales representatives we found in some areas that the retailers already trust the company representative while the company representative has commanded the knowledge on the respective market. In that scenario Keventer Agro can go for forward integration and move on to 1-level distribution structure which consists of only manufacturer> retail> consumer eliminating the distributor. This would further optimize the profit earned by the company Evaluation of the distribution system of Parle Hippo through statistics This part of data analysis is segmented in to two parts. The first part deals with retailers and the second part deals with the consumer. The first part is further broken up in to two scenarios. The first scenario provides a holistic view of the markets surveyed and the second scenario deals with analysis of the attribute according to the area in which the survey is conducted. Part I (A) -Holistic View of the Markets Surveyed 1. Hippo Stocked The graph below showcases the frequency of the shops who stocks Hippo in their shops. 36.2% of the samples do not keep Hippo, where as 24.6% of the sample use to keep Hippo and the rest however keeps Hippo. So it can be said that there are presently more shops where Hippo cannot be found. Since the percentage of shops that use to keep Hippo is considerably high, we get a negative sales trend here. 9 definite reasons for the low sales turnover have been identified. They are: Some of the shops were never approached by the distributor Some shops are already flooded with competitors product so there are no space to stock Hippo In Some areas, the supply was halted due distributor reappointment and other issues Some shops use to keep Hippo but due to low sales they dont keep it anymore Hippo has a limited credit option, so many retailer finds it difficult to block their money for a new product Some retailer does not keep Hippo due to lack of merchandize provided. Retailers demand shelve and almirah so that they can store and display and also protect from mice but very limited or no merchandize is provided to most of the retailers Some retailers do not keep Hippo because they perceive that it is a new product with low awareness, the market is still not ready to accept the product. Had it been ready, the consumer would themselves ask for it Some retailers complained about poor follow up from the sales team and is the reason for not keeping Hippo Some retailers, who use to keep Hippo complained that the expired stock were not replaced and they have lost faith in Parle Agro The chart provided below showcases the frequency of the reasons discussed above. Interpretations: 32.5% of the shops were never approached by the company. From the qualitative data it has been found that many retailers were positive about keeping Hippo if they were being approached by the company. 12.5% of the shops have no space to keep Hippo. While conducting survey it is found that many shops were flooded with competitor brand leaving no space for Hippo. Out of 24.6% of sample who use to keep Hippo, 11.2% stopped keeping Hippo due sudden halt in supply due to distributor reappointment problem and other associated problems. 8.8% of the samples do not keep Hippo anymore due to its low sales while 2.5% of the samples do not keep Hippo because of the credit policy. The low sales associated with limited credit policy makes it difficult for the retailer to invest in the slow moving stock. 1.2% of sample reported that they do not keep Hippo because Parle Agro do not provide them with almirah or rack as result the products get damaged because of mice. Among the samples who never kept Hippo, 10% of the sample never kept Hippo because no customer demanded for it. They said, they will only keep Hippo when customer starts asking for it. The demand graph is provided below. Among those who use to keep Hippo, 8.8% of sample do not keep it anymore due to bad follow up from the distributor. One of the samples was approached by the distributor ho took order but never delivered the products. The expired date products were never replaced for which 2.5% of the sample does not keep Hippo. The reason for the 8.8% of the shops could not be gauged due to any response from the retailers. 2. Demand of Hippo: The graph below provides a holistic view about the demand of Hippo. 42.7% of the sample said that the demand of Hippo is low while 33.7% of the sample said that the demand is average followed by 23.6% of the sample who said that the demand is high. 3. Reorder period: Among the samples who keep Hippo, 57.6% of the sample orders on a weekly basis, 24.7% orders on a monthly basis, 10.6% on a fortnightly basis and 7.1% of the sample orders twice a week. 4. Most selling Stock Keeping Unit (SKU): 74.1% of the sample reported that the small packs are most selling stock keeping unit (SKU) while 25.9% of the sample reported about the medium pack. 5. Most selling flavour: On an overall analysis, we found that there is very low consistent pattern of choice of flavour. However 21.2% of the sample said that the bluish green pack (Goan Butter and Garlic) sells the most followed by Punjab Da Pickle. 6. Awareness of nutrition facts among retailers: 70.5% of the sample had no idea about Hippo being baked but not fried while that 29.5% of the sample had idea about the health positivity of the product. Among 29.5 % of the samples who are aware of the fact only 2.4% of the samples pitch about it while selling it. 7. Analysis of the margin/profit offered by Hippo and its competitors: The objective is to find whether there is significant difference among the margin offered by three brands i.e. Lays, Bingo and Hippo. In other words, it is a test for difference in distributions (medians) of the margin/profit for the different brands of snacks. Methodology applied is Kruskal-Wallis Test. The null hypothesis H0 = PL = PB = PH and the alternate hypothesis H1 is PL, PB and PH are significantly different. PL = Proportion of retailer to whom Lays provide them with highest margin PB = Proportion of retailer to whom Bingo provide them with highest margin PH = Proportion of retailer to whom Hippo provide them with highest margin The significance level (a) is 0.05. According to the Kruskal-Wallis test, the p-value is as low as zero, so we reject the null hypothesis. So we see that at the a = 0.05 level of significance, there exists enough evidence to conclude that there is significant difference among the three snack brand in terms of the margin/profit provided to the retailer. 8. Factor Analysis: The main applications of factor analytic te (1) To reduce the number of variables and (2) To detect structure in the relationships bet Therefore, factor analysis is applied as a dat The variables taken are: .Supply Quality of Hippo as r .Quality of Product delivered as r .Quality of service(Replacement .Merchandize offered and its a .Margin perceived by the samples .Quality of Hippo as responded by Samples or analytic techniques are: the number of variables and tionships between variables, that is to classify sis is applied as a data reduction or structure detection method. Supply Quality of Hippo as responded by Samples ed as responded by Samples placement and Adjustment) as responded by Samples and its availability as responded by Samples ed by the samples sponded by Samples classify variables. tion method. y Samples The main applications of factor analytic te (1) To reduce the number of variables and (2) To detect structure in the relationships bet Therefore, f actor analysis is applied as a dat The variables taken are: .Supply Quality of Hippo as r .Quality of Product delivered as r .Quality of service(Replacement .Merchandize offered and its a .Margin perceived by the samples .Quality of Hippo as responded by Samples or analytic techniques are: the number of variables and tionships between variables, that is to classify sis is applied as a data reduction or structure detection method. Supply Quality of Hippo as responded by Samples ed as responded by Samples placement and Adjustment) as responded by Samples and its availability as responded by Samples ed by the samples sponded by Samples classify variables. tion method. y Samples From the component plot above it is quite clear that plot above it is quite clear that quality of product, quality of supply and replacement and adjustment constitute one factor while margin of hippo and merchandizing provided constitute the other factor. From the Scree Plot it can be seen that 2 components have Eigen Value more than 1 and they can explain 74.09% of the variation. Part 1 (b) Area wise analysis of the attributes 1. Demand hippo vs Area 70%, 55%, 50% in Lake Town, Shyambazar, Ultadanga respectively consider the demand of Hippo to be low. 72.7% of sample in Salt Lake and 50% of sample in New Market feels the demand for Hippo is average. However 44.4%, 50%, 41.7% of the sample in Nagerbazar, Baisakhi and Ultadanga respectively fell the demand is high over there. 2. Flavour vs area Goan Butter and Garlic flavour is the most liked flavour in Salt Lake. While Punjab Da Pickle is the favourite in Nagerbazar. All the other area has no definite favourite. 3. Area vs Hippo Stocked Cross tabulation Area * Hippo Stocked Cross tabulation Hippo Stocked No Yes Previously Kept Area Salt Lake Count 0 12 0 % within Area .0% 100.0% .0% Lake Town Count 4 3 4 % within Area 36.4% 27.3% 36.4% Nagerbazar Count 2 10 0 % within Area 16.7% 83.3% .0% Baisakhi CK Market Count 3 1 5 % within Area 33.3% 11.1% 55.6% New Market Hogg Market Count 11 0 6 % within Area 64.7% .0% 35.3% Ultadanga, Murari Pukur, Kankurgachi Bagmari Count 13 5 7 % within Area 52.0% 20.0% 28.0% Beadon Road, Aurobindo Road Vivekananda Road Count 13 10 5 % within Area 46.4% 35.7% 17.9% Shyambazar, Baghbazar Rajballav Para Count 4 13 7 % within Area 16.7% 54.2% 29.2% Total Count 50 54 34 % within Area 36.2% 39.1% 24.6% From the cross tabulation above, we see that the penetration of Hippo is excellent in Salt Lake and Nagerbaz

Finding the Exception Essay

â€Å"I remember riding my bike to school every day and seeing those two men working on their bicycles in their garage, little did I know that they would be the founders of the Trek Bicycle Corporation.† My mother told this to me a few months back when we were reminiscing on the good ol’ days. Waterloo, one of the smallest towns I have ever been too, is home to the success of French history. Its Trek bicycles are now the Tour de France winning frames that brought Lance Armstrong his victories and brought the midwest its spotlight on making the first American bike frames to win the world’s most prestigious bicycle race. By 1984, Trek was at its peak and sales were around $20,000 with approximately fifty thousand Treks being sold in the United States (Burke, 2012). However â€Å"Trek had grown arrogant, and the problems were starting to show† (Burke, 2012). Within business success lies problems and for this company the early years presented many because Trek did not like the bicycle retailers that they were dealing with, they had no brand strategy, and they had no money to advertise It seems that the most successful businesses start with the passion of at least one person. For Trek it was the vision of Richard Burke and Bevel Hogg. Burke was a former accountant that took interest in investments. Hogg was the owner of a Midwestern chain of bicycle stores. While Burke spent 15 years perfecting his business skills with Roth Corporation in Milwaukee, Wisconsin, Hogg was growing tired of the retail business while keeping his heart with bicycles. Burke had a passion for outdoor recreation which drove him toward the bicycle market. During a meeting between the two men in 1975 when they sought to solve the issue of foreign made product. Their main competitor at the time was Schwinn bu this company dominated the specialty retail market but their bikes were Japanese made. Burke and Hogg wanted to sell American-made product for the same specialty. The company began as a five-person operation in a barn and is now a globally oriented company with distribution in 65 countries and over 1500 employees worldwide. What made the Trek bicycle so unique? Their mission was and still is simple, build the best bikes in the world. The frame sets were handmade from steel. The style was adopted from a European brazing style with its own American flavor. Tim Issac, an early frame engineer, said that a Trek bicycle could be identified without any paint on it. The company was blessed with the right designers and tolling infrastructure to use exactly the right materials to create such unique frame sets. The company had successfully found a way to distinguish itself. â€Å"In order to succeed, you cannot just sell any brand; you need to produce something special† (Burke, 2012, p. 4). Once this is established it’s time to settle on a distribution channel to ensure customers are being reached. At the time, Penn Cycle, outside of Minneapolis, Minnesota was Trek’s dealer. What attracted this dealer to Trek was that not only did this bicycle manufacturer provide lightweight, advanced bicycle s, but they were also made in the United States. Market shares were quickly gaining from the Japanese and European competitors and the company was gaining dealers from Madison to San Francisco and sales had grown to over $1,000,000. After expanding the facility to allow for assembly lines and paint factories, reshaping the entire business, the company was able to hire its first true sales representatives and there in lies its customer service foundation. In 1981, sales doubles and again in 1982. In 1983, the company was already building additions to the factory. The business growth inspired a movements on the West Coast in corporations like Gary Fisher. Then in 1985, sales were over $20,000,000 But, as with any fast lane growth, Trek was facing a net loss for the second year straight. The totals sales in 1984 did not meet expectations and quality control was lacking which angered retailers. The assembly line was built but   it seemed as thought the company didn’t know how to keep it moving forward. On top of that the turn over rate was lacking. John Burke, the son of Richard Burke, who worked for his fathers business remembers writing orders and them showing up at the customer two weeks later but yet having other orders written on prior sales call that still were not arriving to the customers (Burke, 2012, p. 10). The quality in the company was deteriorating. There were paint problems, frames were out of alignment, credits that were promised were not going through, etc. â€Å"I worked hard and sold a lot of product but the problems from the home office kept mounting† (Burke, 2012). Retailers were becoming more and more upset which pushed Trek even harder and the company was falling apart. Customer services makes or brakes a company in the retail world and Treks mission was to make every customer happy. It was up to their customer service department to bring this company back up and that is exactly what John Burke did. He knew that they needed to regain their focus, and that he needed to take a more active role in the companies day-to-day operations. A lot of options were being faced which included closing the operation and liquidating the business, sell the company, or turn it around. â€Å"We decided to roll up our sleeves and get it done (Burke, 2012). There is one method in business that seems to always prevail and that is the back-to-basics approach. Build a quality product, at a competitive value, that can be delivered on time while maintaining a positive work environment for customers and employees. Most importantly, deliver profit. The company first needed to start shipping orders on the same day. Cross training is always an excellent tool and this was a perfect opportunity for the business-suited employees to start putting their hand in on the factory work. The factory would get backed up and so the office workers would go into the warehouse and make sure that orders were fulfilled. Saturdays may seem like a day of rest for some but for Trek to succeed it had to require work on the weekends. Not only were deadlines met but lousy product needed to stop making it out the door. This truly shows the customer that their needs are  being met no matter what it takes. Organizational buying process is such an important business practice. With the many years of developed partnerships Trek has established, the company now has suppliers around the world that allow the fulfillment of demands of the product line. In the 1980’s, when Trek was struggling, they were overlooking one very important aspect of their customer relationships-what is the actual value of their product? They were not going to their buyers and simply asking if they could help them find a vendor based on the value they were proposing. One a vendor is found there is some research that is to be done as well. Does this vendor have good history? Who has worked with them in the past? Is there opportunity to save some money in the mean time? Reliable quality product is what businesses thrive on. Any product that is overpriced needs to be discontinued and new products need to be developed that hit the right price points. â€Å"When potential suppliers are identified, they’re evaluated on four criteria: quality, delivery, capability, price, and environmental impact of their production process† (Kerin, 2005). In an industry such as bicycle production, the operational approach to management is essential. This approach is dedicated to improving efficiency, cutting waste, and improving quality (Kreitner & Cassidy, 2011). By staying in line with business ethics, the manager of Trek would have put more energy into building better product so that it would support the challenges faced today such as limited mobility, issues with the environment, and now more than ever, issues with health. Essentially the bike must work well. If the name Trek is one it then there is quality behind it and this quality needs to be adhered to in the warehouse during production. At the time, Trek probably could not have seen that the bicycle would become the simple solution to all of these things but just as we embrace the availability of such innovation, managers of any business should be at least two steps ahead as to almost predict the future, therefore focusing on sustaining the reputable quality product that the company originated from. In 1988, Trek introduced the Model 1200 aluminum road bike. This was the turning point for the company. This was true quality at a very competitive price. The original dollar amount was $500. Originally the company planned to sell 3,000 of these models but at the end of the year 12,000 were sold. This is when a business needs to reevaluate its retail margin. What goals are being made to improve the amount of retailers and what is the target date? Buyer centers then need to help the company find vendors to find the right place to sell new product. New strategic visions for new models and components builds a better business. Trek was learning, slowly but surely, that they needed to look at their own processes, understand how they make their product, how they source their product, and how they will continue to bring their product to the market and maybe at the end of the day, saving a dollar or two. How could Trek build bicycles that last longer, maybe even use recycles tires. Every business has room for improvement. Business owners should always be looking for ways to bring new technology and solutions into the marketplace. By 1996 Trek was now over $300 million in sales. At this point in the time the company was expanded in Europe to include Japan. However, when there is sunshine expect rain and when there is rain expect for sun. After Trek ramped up their budgets by 20 percent in 1996, 20% more product was to be produced. Sales forecasts were starting to get missed which left inventory levels shooting through the roof. The company was yet again out of balance. There were more bikes in inventory than sales. Every year bicycle products are expected to change, therefore this high inventory of product needed to be discounted heavily in order for sales to continue. This only hurts profit margins. Basically what happened was that Trek grew too big too fast. Just about an hour away form Waterloo is the Whitewater Trek manufacturing plant. When this plant was first opened in 1995, the goal seemed to still be manufacturing low-price point bikes. â€Å"We got out of 1996 making a profit, but the future was no longer bright, and storm clouds were on the horizon† (Burke, 2012). Then numbers continued to look worse and worse as the years went on. Finally in 1998, Tim Callahan was hired on to Trek to take over manufacturing. He turned over Trek manufacturing that essentially saved the business, yet another time. The concept of Kaizen, Japanese for â€Å"continuous improvement† was used first to turn the Trek factories around. â€Å"In the gift-that-keeps-on-giving department, we took Kaizen to our dealer network and it has continued to make an amazing difference to this day† (Burke, 2012). Businesses to do not There was one other thing that added to Treks new found momentum in success. Trek signed a sponsorship deal with the US Postal Service to sponsor a bike team. Thanks to Lance Armstrong, who had a good group of riders, Trek appeared in the 1999 Tour de France. Lance’s winnings gave Trek the opportunity to show up on the front of Sports Illustrated and The New York Times, as well as on the Letterman show (Burke, 2012). Business was great until the year 2006. Production needed a facelift. How do you keep a product backed for years by consumers by maintaining its quality and reputation? For consumers of Trek bicycles, there is customer loyalty. Just like with Apple computer or Smart phones. Why such dedication from the customer? Trek figure out that to continue this relationship they would not only have to continue to build quality bicycles-the best in the world but they would provide their customers with quality products at competitive value that would be delivered on time. Just as with Apple computers, the product continues to prove itself in quality, never leaving the customer unsatisfied. IF there is a problem for whatever reason, dedication to customer sanctification shines the most by fixing whatever issue there may be in a timely fashion. When Senior Burke fired the management team and asked John to move back to Wisconsin to run Trek’s customer service department, he learned the value of maintaining relationships with retailers and customers.

Conjugating the French Verb Penser (to Think)

The French verb  penser  is an important word to know because it means to think. You will use it quite often when you speak French, so its a good idea to study and memorize the verbs conjugations. This lesson will demonstrate how to do that and form the present, past, and future tenses of penser. The Basic Conjugations of  Penser Verb conjugations in French are the equivalent of adding an -ing  ending in English to forms words like thinking. We must first identify the verb stem—for  penser  that is  pens-  Ã¢â‚¬â€then add the appropriate ending to match the subject pronoun and tense of the subject. French students will be happy to know that  penser  is a  regular -er verb. It follows the most common conjugation pattern found in French. If youve studied similar words like  passer  (to pass) or  demander  (to ask), then this lesson will be easier because it applies the same endings. In the simplest form, this is done in the indicative mood for the present, future, and imperfect past tenses. These are the forms of  penser  that you will use most often, so I am thinking is  je pense  and we will think is  nous penserons. To help you commit these to memory, try using the conjugation in simple sentences. If you need some ideas, there are plenty of common phrases that use  penser. Present Future Imperfect je pense penserai pensais tu penses penseras pensais il pense pensera pensait nous pensons penserons pensions vous pensez penserez pensiez ils pensent penseront pensaient The Present Participle of  Penser The present participle of penser is pensant. Notice how this was formed by simply adding -ant to the verb stem. Penser  in the Past Tense The past tense can of  penser  is expressed with either the imperfect or the  passà © composà ©. To form the latter, you will construct a short phrase using the  auxiliary verb  avoir  and the  past participle  pensà ©. For example, I thought is  jai pensà ©Ã‚  and we thought is  nous avons pensà ©. Look carefully and youll notice that the only conjugation needed was  avoir  in the present tense and that the past participle  pensà ©Ã‚  doesnt change. More Simple Conjugations of  Penser Consider the conjugations above to be your top priority when studying  penser. When youre comfortable with those, add these other simple conjugations to your vocabulary.   Each of these has a specific purpose. For example, the subjunctive expresses uncertainty in the action of thinking while the conditional says that something else must happen in order to think. The other two verb forms—the passà © simple and imperfect subjunctive—are used more often in formal French, but they are good to know. Subjunctive Conditional Pass Simple Imperfect Subjunctive je pense penserais pensai pensasse tu penses penserais pensas pensasses il pense penserait pensa penst nous pensions penserions pensmes pensassions vous pensiez penseriez penstes pensassiez ils pensent penseraient pensrent pensassent You will use the imperative form of  penser  when saying direct and very short commands such as Think! When doing so, theres no need to include the subject pronoun. Simply say Pense ! Imperative (tu) pense (nous) pensons (vous) pensez

Asking for Directions in German

In this lesson youll learn German vocabulary and grammar related to going places, asking for simple directions, and receiving directions. This includes useful phrases such as  Wie  komme  ich  dorthin? for How do I get there? Youll find all of this very helpful when traveling in Germany, so lets start the lesson. The Tips You Need to Ask for Directions in German Asking  for directions is easy.  Understanding the torrent of German you may get back is another story. Most German textbooks and courses teach you how to  ask  the questions, but fail to deal adequately with the  understanding  aspect. Thats why we will also teach you some coping skills to help in such situations.   For example, you can ask your question in such a way that it will elicit a simple ja (yes) or nein  (no), or a simple left, straight ahead, or right answer. And dont forget that hand signals always work, no matter the language. Asking Where: Wo  vs.  Wohin German has two question words for asking where. One is wo? and is used when asking the location of someone or something. The other is wohin? and this is used when asking about motion or direction, as in where to. For instance, in English, you would use where to ask both Where are the keys? (location) and Where are you going? (motion/direction). In German these two questions require two different forms of where. Wo  sind die Schlà ¼ssel?  (Where are the keys?)​Wohin  gehen Sie?  (Where are you going?) In English, this can be compared to the difference between the location question wheres it at? (poor English, but it gets the idea across) and the direction question where to? But in German you can only use  wo?  for wheres it at? (location) and  wohin?  for where to? (direction).  This is a rule that cannot be broken. There are times when  wohin gets split in two, as in: Wo gehen Sie hin? But you cant use wo without hin to ask about motion or direction in German, they must both be included in the sentence. Directions (Richtungen) in German Now lets look at some common words and expressions related to directions and the places we might go. This is essential vocabulary that you will want to memorize. Notice that in some of the phrases below, the gender (der/die/das) may affect the article, as in in  die  Kirche (in the church) or an  den  See (to the lake). Simply pay attention to those times when gender changes der  to den  and you should be okay. Englisch Deutsch along/downGo along/down this street. entlangGehen Sie diese Straße entlang! backGo back. zurà ¼ckGehen Sie zurà ¼ck! in the direction of/towards... the train station the church the hotel in Richtung auf... den Bahnhof die Kirche das Hotel left - to the left links - nach links right - to the right rechts - nach rechts straight aheadKeep going straight ahead. geradeaus (guh-RAH-duh-ouse)Gehen Sieimmer geradeaus! up to, untilup to the traffic lightup to the cinema bis zum (masc./neut.)biszur (fem.)bis zur Ampelbiszum Kino Compass Directions (Himmel Srichtungen) The directions on the compass are relatively easy because the German words are similar to their English counterparts. After you learn the four basic directions, you can form more compass directions by combining words, just as you would in English. For example, northwest is  nordwesten, northeast is nordosten, southwest is sà ¼dwesten, etc. Englisch Deutsch north - to the northnorth of (Leipzig) der Nord(en) - nach Nordennà ¶rdlich von (Leipzig) south - to the southsouth of (Munich) der Sà ¼d(en) - nach Sà ¼densà ¼dlich von (Mà ¼nchen) east - to the easteast of (Frankfurt) der Ost(en) - nach Ostenà ¶stlich von (Frankfurt) west - to the westwest of (Cologne) der West(en) - nach Westenwestlich von (Kà ¶ln)