A PROJECT REPORT ON MARKETING STRATEGIES TO IMPROVE MARKET SHARE OF ATOP IN AHMEDABAD UNDERTAKEN AT

ATOP FOOD PRODUCTS

SUBMITTED BY: NIT ESH CHAUDHARI (07MBA04)

INDUS INSTITUTE OF TECHNOLOGY & ENGINEERING

1

2008

STUDENT DECLARATION

I am NITESH CHAUDHARI; MBA 2 n d SEM specializing in Marketing. I declare that the project work presented in this report is my own work and has been carried out and accomplished under the supervision and guidance of FACULTY GUIDE Mr. Visal Goel This project report has not been previously submitted to any other university or organization for any other examination.

Date: Place: AHMEDABAD Yours faithfully, NITESH CHAUDHARI

INDEX

SR.NO

CONTENTS PREFACE ACKNOWLEDGEMENT EXECUTIVE SUMMARY

PAGE-NO

6 7 8

PART-A
1 2 3 4 5 6 7 8 9 10 11 INVENTION OF POTATOES CHIPS& NAMKEEN ABOUT SNACKS INDUTRY HISTORY OF COMPANY COMPANY PROFILE ORGANISATION STRUCTURE PROCESS FLOW PRODUCT PROFILE SALES FOROCE MANAGEMENT MARKETING MIX PORTERS FIVE FORCE ANALYSIS SWOT ANALYSIS

PART-B
12 13 14 15 16 17 18 19 RESEARCH METHODOLOGY DATA ANALYSIS SALES REPRESENTATIVE FINDINGS RECOMMENDATIONS CONCLUSION BIBLIOGRAPHY ANEXTURE

11 12 19 20 23 26 29 39 41 43 47 50 53 65 68 69 72 74 76

PREFACE
True learning is born out of experience and observation and also there is no alternative to own experience, to learn anything with definite questions and answers. Theoretical knowledge gives us an insight of how To Put Things in Action; working with company is one of the tools of acquiring practical knowledge, which is an indispensable part of any management programme like Master of Business Administration. So, the project training is very important for the student for selfdevelopment and self-expertise. In highly competitive world of today all the businesses have to be alert and advance in order to survive in the market and for this, a company has constant look out for changing trends and technology in the market.

Strategy is the roadmap (a set of moves or steps) which let an organization to pursue a long term position or goal which it has visualized for future. The effort and intelligence in utilizing and developing a strategy determines the success of organization.

My main objective and purpose behind the project was to study market factors leading to decline in sales of ATOP CHIPS and NAMKEENS in AHMEDABAD. What strategies company should follow to improve its declining market share in AHMEDABAD? What moves should be taken against competition offered by companies main competitor BALAJI and other players in the market?

The report is presented in simple and professional manner so that any person can read it easily and understand the content of the report.

ACKNOWLEDGEMENT
Training is the first step in the practical field from where one learns how to apply theoretical principles for practical purpose. To make a project success one needs help, understanding and co-ordination from all those who are directly or indirectly involved in this project. I have no words to elaborate as how much I am indebted to the INDUS INSTITUTE OF TECHNOLOGY AND ENGINEERING; specially its faculty members like our HOD Mr. Ashish Joshi and FACULTY Mr. Visal Goel; whose supports and genuine suggestions enabled me to widen my horizons of knowledge. I am especially thankful to Mr. Rupesh Patel (General Manager); ATOP FOOD PRODUCTS who gave me an opportunity to undertake project in ATOP FOOD PRODUCTS as well as Mr. D.K. Raj (Sales Head) and Mr. Durgesh Kacha (Sales coordinator) whose positive attitude and faith in my ability spurred me to perform well. I am also grateful to my project guide Mr. Nikul Patel and Mr. Ketan Trivedi (Marketing Executives) of ATOP FOOD PRODUCTS for their guidance and cooperation throughout the project. Last but not least, I sincerely appreciate the inspiration; support and guidance of all those people who have been instrumental in making this project really successful.

EXECUTIVE SUMMARY
ATOP Food Products is promoted by the group that needs no introduction i.e. SAMAY group. Samay Group has always remained front runner, be it an electronic product or a food products. Samay Group came into existence in 1997 and within a very short time, it ventured into full-fledged manufacturing of Clocks and Timepiece with SAMAY brand at vast manufacturing unit situated on Morbi-Rajkot Highway, Gujarat, India, sprawled over 40 acres of land. It has not looked back thereafter. Every year a product is included in his showcase. Now it produced telephones, calculators, Wristwatches and Energy saving lamps. It has received many National Awards in different categories. Besides being an ISO 9001-2000 Certified Company. ATOP Food Products produced packed fast-eatables food item. The product range will be consistent and competent compared to any other national brand of its category, starting with Potato Chips, Namkeens and Sweets indifferent test and flavors. We manufactured food item keeping the growing health consciousness. ATOP FOOD PRODUCTS is now proud to be India's first "International Safety Standard Measured" an ISO 22000:2005 certified company. The product range will be consistent and competent compared to any national brand of its category. Starting with Potato Chips, Namkeens, Extruded Foods, and Pallet Foods in different tastes & flavors. Since the company is concentrating on the quality food product with low-fat, the entire process of manufacturing will be completely hygienic and health-friendly. Keeping the growing health consciousness and tendency towards Ayurveda and Herbal concepts, Chywanprash, pickles and other food products like confectioneries will be added. This report is a study of market factors leading to decline in sales of Wafers and Namkeens and strategies to improve market share of Wafers and Namkeens in Ahmedabad. The other main objectives of study are to measure Atops distribution effectiveness in Ahmedabad, retailers perception and sales team motivation.

To serve all the objectives of project a market research was conducted. The design of research is conclusive (research design) which includes survey method (questionnaire) to collect information from retailers. This report also gives brief introduction of ATOP FOOD PRODUCTS and it also highlights the key factors and structure of snacks industry.

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INVENTION OF POTATO CHIPS AND NAMKEEN

While much of history comprises many people doing singular things, in certain cases one or two people seem to do an awful lot. Some days, it seems that everything we enjoy was invented by the ancient Chinese and/or abetted by Thomas Jefferson. Thus, we have Thomas Jefferson perfecting ice cream recipes (originally created, as fruit ice by the Chinese), Jefferson returning from Europe with the first pasta machine (pasta, too, invented by the Chinese), and at the same time bringing the recipe for French fries, called potatoes fried in the French manner (as far as we know, the Chinese have had absolutely nothing to do with the potato). From that elegant dining room in Monticello in 1789, French-style fried potatoes spread quickly and far. The style of the time was a thick-cut fry and not the slender julienne frites of today. According to the Snack Food Association, the potato chip was born a generation later, on August 24, 1853 in another elegant dining room: this one, at the fashionable Moon Lake Lodge in Saratoga, New York. A testy older diner, Commodore Cornelius Vanderbilt*, sent his food back to the kitchen, complaining that the fried potatoes were not sliced thin enough and were too soggy.

ABOUT SNACKS INDUSTRY

11

The snack food industry in market-driven societies such as the United States generates billions of dollars in revenue each year. The market for processed snack foods is enormous, and a number of large corporations compete rigorously to capture larger shares of the snack food market. Consequently, heavy promotions are used to convince consumers to buy snack foods. Processed snack foods are advertised far more than regular nutritional foods (such as fruit, vegetables, meat, dairy products), and the flashiest TV commercials and advertising campaigns are often designed to sell these products. The global potato chips market generated total revenues of 18.7 billion dollars in 2007. This accounted for 35.5% of the total savory snacks market in that year (52.67 billion dollars).

Snacks Industry in India

The snack food market in India is valued at Rs. 1530 crore and is one of the largest markets in the world, out of which potato chips holds the major market share of around 85%. Big players like McCain Smiles and NP Foods have also entered into Indian potato snack industry in 2005.It is one of the largest snack markets in the Asia-Pacific region Products covered

Potato chips Savory snacks Snack nuts Popcorn French fries

There are many players in Indian snacks industry; especially in Chips and Namkeen. As the market of branded snacks is growing at 14% and the margin of this

12

sector is also high there would be many players would be entering into this sector. Fritolays, Bingo, Haldiram and BikanerWala are the national players. Frito-lays command a market share of 45%, Haldiram 27%, Bingo (ITC) 16% and remaining 12% is covered by other players like Balaji etc...

To remain the market leader lays with its product kurkure started mass advertising and campaigning. The success of the ITCs bingo was the companys distribution network. As ITCs vast distribution network bingo could reach each and every corner of the market. Bingo has got it place in retail outlet as well as in the mall also. On the other hand Frito lays has found its place in BIG Bazaar. Indias pride, Amul also wanted to taste the margin of the snacks. The Amul also has their brand MUNCH in the market. The company is targeting the teenagers & children.

13

 Snacks Industry in Gujarat

If we are talking about the completion at the state level; there are many players like Oreva, Atop,Samrat,,Uttam,Real, Susma,Everest, Shayam Sunder and major player Balaji, which covers nearly 90% of wafers market and 70%of namkeen market. In other words we can say that Balaji has monopoly in the branded snack in Gujarat. The turnover of Balaji for wafer production is nearly 300 crore. As the market is growing with 14 % (CAGR); Morbi based clock manufacturer companies like Samay, Ajanta, also plunged into this sector. To break the monopoly of Balaji, the companies like Oreva & atop is giving more margins to the retailer than Balaji. In Balaji wafers the retailer gets only 0.75 paisa per packet of 5 Rs whereas Atop gives 0.85 paisa per packet of 5 rupee. Due to the fluctuation in the price of potatoes and oil the companies find difficult to maintain the weight of the wafers is being given to the customers.

Wafers market in Gujarat

14

 Namkeens market in Gujarat

15

As Namkeens market doing well in Gujarat, all players focus on it also. It is not much organized sector in Gujarat because customers buy Namkeens from local Mithaiwalas. In spite of that many brand names like Balaji, Atop etc are doing well.

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17

PLANT

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COMPANY HISTORY
ATOP Food Products is promoted by the group that needs no introduction i.e. SAMAY group. Samay Group has always remained front runner, be it an electronic product or a food products. Samay Group came into existence in 1997 and within a very short time, it ventured into full-fledged manufacturing of Clocks and Timepiece with SAMAY brand at vast manufacturing unit situated on Morbi-Rajkot Highway, Gujarat, India, sprawled over 40 acres of land. It has looked back thereafter. Every year a product is included in his showcase. Now it produced telephones, calculators, Wristwatches and Energy saving lamps. It has received many National Awards in different categories. Besides being an ISO 9001-2000 Certified Company, it has also received ISO 14001 Certification. To fulfill the growing needs and to add more economy to the productprices, Samay has also spread its wings to another state by establishing additional manufacturing facility in Himachal Pradesh, India. We (ATOP Food Products) produced packed fast-eatables food item. The product range will be consistent and competent compared to any other national brand of its category, starting with Potato Chips, Namkeens and Sweets indifferent test and flavors. We manufactured food item keeping the growing health consciousness. ATOP FOOD PRODUCTS is now proud to be India's first "International Safety Standard Measured" an ISO 22000:2005 certified company. We are rated by D&B (D_U_N_S Number 92 - 422 - 0697). ATOP FOOD PRODUCTS is the first food product company to be certified under ISO 22000 international safety standard in India, catering globally with a comprehensive range of premium quality snacks such as potato chips, Namkeens, extruded foods and the like. ATOP Food Products is a renowned company, established in the year 2005 and catering to the globally flourishing food market. Our "Samay" company is certified with ISO 9001:2000 quality accreditation along with ISO 14001 certification as our achievement. 19

COMPANY PROFILE
Business Type: Capital in Rupees: Export Percentage: Import Percentage: Primary Competitive Advantages: Exporter , Manufacturer , Importer Rs. 40 lakh 5% 45%

Tasty and nutritious products International standards of hygiene and freshness

No of Staff: Year of Establishment: Export Markets: Import Markets: OEM Service Provided: No of Engineers: Memberships: Product Range:

202 2005 Worldwide China Yes 5 Food Products Association

Potato Chips in different Flavours Banana Mari Wafers Shing Bhujia Tan Tan Mixtures Ratlami Sev Khatta Mitha Namkeen Aloo Sev Mung Dal Namkeen Channa Dal Namkeen Masala Sev

Quality assurance

20

ATOP Food Products strives towards perfection through Total Quality Management. Our state-of-the-art quality system has been awarded ISO 22000 certification. The products of our collection meet the international standards of hygiene and freshness. As a revolutionary company, we are bringing in innovative strategies in advanced and flexible production systems, product development, quality assurance and logistics support that have empowered us to share our benefits with the business partners. In order to ensure good quality of the products, we procure the raw materials like oil, pulses, flour, etc. from reliable producers and employ skilled professionals who have a good sense of purity, flavor, and color measurements for quality of our food products.

Infrastructure
ATOP Food Products has incorporated all the latest technology machines so that our range can retain its taste and freshness for a longer time period. In order to ensure the best quality products, we have installed the World's No.1 technology production line with current production capacity of Potato Chips (500 kgs. /hr.), Namkeens (1000 kgs. /hr.), Extruder Snacks- Kurkure (750 kgs. /hr.) and Sonpapdi- Sweet (500 kgs. /hr.).

We make sure that the freshness of these products is preserved in each pack, with front-line packaging machineries used for complete packaging solutions. It also includes solvent-less nitrogen packaging- the latest technology in conformance to the international standards. In India, our company has for the first time adopted the Safe-line Metal Detector Technology on complete packaging line so as to assure absolutely metal-particle free products.

TECHNOLOGY

21

We always believe in latest technology, but there is no compromise in quality. We have one of the world's best fully automatic production lines, with packaging facility. It has the Safe-Line Metal Detector Line for packaging line. Atop has incorporated all the latest technology machines, so that the product can retain its taste and freshness for longer time

Control Panel

Chips Line

Packing Machine

Packing Machine

Laboratory

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CHAIRMAN

Managing Director (MD)

General Manager (GM)

Head of Marketing (HOM)

Area Sales Officer ORGANISATION STRUCTURE

Sales Officer

23

Trainee

The Chairman of the company is at the top of the hierarchy.

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Managing Director (MD) is at the next level of the Chairman.

General Manager (GM) is at the next level of Managing Director (MD).

All the functional divisions (finance, QA, HR) are in the hand of Manager (GM)

General

Head of Marketing (HOM) is the next to the General Manager and handle all functions regarding marketing like Sales, advertisement, Logistics, promotion etc

Area Sales Officer (ASO) is next to Marketing Head.

Sales Officer is the last in the management hierarchy

At last Trainee

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PROCESS FLOW

Ingredients Dough Mixing Forming Extrusion Frying Inspection Flavouring Cooling Packaging

The Manufacturing Process

When the potatoes arrive at the plant, they are examined and tasted for quality. A half dozen or so buckets are randomly filled. Some are punched with holes in their cores so that they can be tracked through the cooking process. The potatoes are examined for green edges and blemishes. The pile of defective potatoes is weighed; if the weight exceeds a company's preset allowance, the entire truckload can be rejected.

The potatoes move along a conveyer belt to the various stages of manufacturing. The conveyer belts are powered by gentle vibrations to keep breakage to a minimum.

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The potatoes are loaded into a vertical helical screw conveyer which allows stones to fall to the bottom and pushes the potatoes up to a conveyer belt to the automatic peeling machine. After they have been peeled, the potatoes are washed with cold water.

The potatoes pass through a revolving presser that cuts them into paperthin slices, between (1.7-1.85 mm) in thickness. Straight blades produce regular chips while rippled blades produce ridged potato chips.

The slices fall into a second cold-water wash that removes the starch released when the potatoes are cut. Some manufacturers, who market their chips as natural, do not wash the starch off the potatoes. If the potatoes need to be chemically treated to enhance their color, it is

done at this stage. The potato slices are immersed in a solution that has been adjusted for pH, hardness, and mineral content

COOLING AND STORING

At the end of the trough, a wire mesh belt pulls out the hot chips. As the chips move along the mesh conveyer belt, excess oil is drained off and the chips begin to cool. They then move under an optical sorter that picks out any burnt slices and removes them with puffs of air. PACKING AND DESPECTH

The chips are conveyed to a packaging machine with a scale. As the pre-set weight of chips is measured, a metal detector checks the chips once more for any foreign matter such as metal pieces that could have come with the potatoes or been picked up in the frying process.

The bags flow down from a roll. A central processing unit (CPU) code on the bag tells the machine how many chips should be released into the bag. As the bag forms, (heat seals the top of the filled bag and seals the bottom of the next bag simultaneously) gates open and allow the proper amount of chips to fall into the bag.

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The

filling

process

must

be

accomplished

without

letting

an

overabundance of air into the bag, while also preventing the chips from breaking. Many manufacturers use nitrogen to fill the space in the bags. The sealed bags are conveyed to a collator and hand-packed into cartons.

Company packs potato chips of various sizes. The chips flow down a chute into the cans. Workers weigh each can, make any necessary adjustments, and attach a top to the can.

Quality Control

Taste samples are made from each batch throughout the manufacturing process, usually at a rate of once per hour. The tasters check the chips for salt, seasoning, moisture, color, and overall flavor. Color is compared to charts that show acceptable chip colors.

Preventing breakage is a primary goal for potato chip manufacturers. process to decrease the chances for breakage. The heights that chips fall from conveyer belts to fryers have been decreased. Plastic conveyer belts have been replaced with wide mesh stainless steel belts. These allow only the larger chips to travel to the fryers and the smaller potato slivers to fall through the mesh.

Company have installed safeguards at various points in the manufacturing

Byproducts/Waste

Rejected potatoes and peelings are sent to farms to be used as animal feed. The starch that is removed in the rinsing process is sold to a starch processor.

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VALUE ADDED PRODUCTS

Chips

TOMATO TOP Ingredients: Natural Potato, Iodized Salt, Edible Oil, Sugar & Spices and Condiments Added Flavour. Available in : Rs.5/-, Rs. 10/-

SIMPLY SALTED Ingredients: Natural Potato, Iodized Salt & Edible Oil. Available in : Rs.5/-, Rs. 10/-

MIRCH MASALA

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Ingredients: Natural Potato, Iodized Salt, Edible Oil, Sugar & Spices and Condiments Added Flavour. Available in : Rs.5/-, Rs. 10/-

HOT GARLIC Ingredients: Natural Potato, Iodized Salt, Edible Oil, Sugar & Spices and Condiments Added Flavour. Available in : Rs.5/-, Rs. 10/-

CHAT MASALA Ingredients: Natural Potato, Iodized Salt, Edible Oil, Sugar & Spices and Condiments Added Flavour. Available in : Rs.5/-, Rs. 10/-

BANANA MARI Ingredients:

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Natural Banana, Iodized Salt, Edible Oil & Spices and Condiments Added Flavour. Available in : Rs.5/-

Namkeens

FARALI CHOEVDO Ingredients: Natural Potatoes, Peanut Splits, Edible Oil, Sugar Powder, Chili Powder, Iodized Salt, Spices and Condiments. Available in : Rs.5/-, Rs. 10/-

GANTHIA Ingredients: Gram Flour, Black Pepper, Iodized Salt, Edible Oil and Ajowan. Available in : Rs.5/-, Rs. 10/-

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ALOO SEV Ingredients: Potato Powder, Gram Flour, Edible Oil, Starch, Chilly Powder, Mint Oil, Iodized Salt, Spices and Condiments. Available in : Rs.2/-,Rs.5/-, Rs. 10/-

DRY FRUIT FARALI CHEVDO Ingredients: Natural Potatoes, Peanut Splits, Edible Oil, Sugar Powder, Chili Powder, Iodized Salt & Dry Fruit. Available in : Rs.5/-

KHATTA MEETHA

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Ingredients: Gram Flour, Rice Flexes, Split Gram, Sago, Edible Oil, Peanut, Green Peas, Lentils, Mix Spices, Sugar & Citric Acid. Available in : Rs.5/-, Rs. 10/-

MIXTURE Ingredients: Rice Flakes, Corn flakes, Peas, Green Gram, Peanut Splits, Gram Splits, Gram Flour, Sugar Powder, Edible Oil, Chilly Powder, Curry Leaves, Sesame Seeds, Coriander, Black Pepper, Cumin Seeds, Ajowan, Iodized Salt, Spices & Condiments. Available in : Re.1/-,Rs.5/-, Rs. 10/-

RATLAMI Ingredients: Gram Flour, Iodized Salt, Edible Oil, Math Beans Flour, Chilly Powder, Spices and Condiments. Available in : Re.1/-, Rs.2/-,Rs.5/-, Rs. 10/-

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SHING BHUJIA Ingredients: Graded Peanuts, Gram Flour, Iodized Salt, Edible Oil, Black Gram Flour, Chilly Powder, Spices and Condiments. Available in : Re1/-, Rs.2/-,Rs.5/-, Rs. 10/-

MOONG DAL Ingredients: Moong Lentil Splits, Iodized Salt, Edible Oil. Available in : Re1/-, Rs.2/-,Rs.3/-, Rs.5/-, Rs. 10/-

CHANA DAL

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Ingredients: Split Grams, Iodized Salt, Edible Oil, Spices & Condiments. Available in : Re1/-, Rs.2/-,Rs.3/-, Rs.5/-, Rs. 10/-

Chatpatta (Kurkure)

TANGI TOMATO Ingredients: Rice Meal, Corn Meal, Gram Flour, Iodized Salt, Edible Oil, Spices and Condiments contain Added Flavour. Available in : Rs. 5/-

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MAST MASALA Ingredients: Rice Meal, Corn Meal, Gram Flour, Iodized Salt, Edible Oil, Spices and Condiments contain Added Flavours. Available in : Rs. 3/-, Rs.5/-, Rs. 10/-

GREEN CHUTNEY Ingredients: Rice Meal, Corn Meal, Gram Flour, Iodized Salt, Edible Oil, Spices and Condiments contain Added Flavours. Available in : Rs. 5/-

SWEETS

SOANPAPDI Ingredients: Sugar, Bengal Gram Flour, Wheat Flour, Peanut Oil, Hydrogenated Vegetable Fat, Cardamom, Pistachio, Almond.

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Available in : Rs. 30/-

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SALES FORCE MANAGEMENT

Sales team ensures that the ATOP products are available to the customer whenever and wherever required. Sales team is responsible to achieve seasonal and periodical targets. To exploit all periodical sales promotion and ensure that objectives are achieved. Sales team is responsible to minimize outstanding and ensure prompt collection. Sales team should ensure development and training of distributors and sales officers. Sales team should properly store and rotate the stock. They should communicate important and usual competitive activities to the management. Solve customer query promptly and correctly. To attend meeting, conferences, training courses, and makes constructive contribution. Report and general information should be collected, which may be of interest to the company and to its business. Carefully select distributors, constant performance reviews and recommendations to top management of the company for any action to be taken.

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MARKETING MIX (4Ps)

Following four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response. o Product o Price o Place o Promotion ATOP FOOD PRODUCTS is sensitive to provide its services to customers and it focuses on its product mix to satisfy the customers needs and wants. Marketing mix

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Product:

ATOP FOOD PRODUCTS having 17 products in their product portfolio with different varieties and taste depending on the demand of customers in which quality is important factor for ATOP. ATOP FOOD PRODUCTS launches new products constantly according to customers needs. To know the customers taste and preferences they made surveys frequently to know what customers want and what customer like to eat. ATOP FOOD PRODUCTS mainly focuses on customers tests and preferences because customers are the uncrowned king of the market and they are decided the future of the any product in the market. All Products of the ATOP are easily available in the market and they share near to 6 % market of their available products. Price:

ATOP considers the related aspects such as competitors price, cost including production expenses and profit margin, which decide the price 41

of the products. They give customers good quality of product and it means they believe in customer satisfaction and quality of the product not on profit of company. Place:

ATOP provides its products to different places with the help of strong and powerful distribution network. They almost cover whole Gujarat and their products easily available at any place of Gujarat, Maharastra and Haydrabad. Promotion:

ATOP promotes its products by personal selling, advertisement with light boards, banners, wall painting, gifts, stickers etc.

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Potential Entrants E

Suppliers

Substitutes

FIVE FORCES MODEL

Industry Competitors:
There is very though competition in this sector. As major player Balaji is considered to the most competitive among all the players, it is the player which has covered almost the whole t market in Gujarat. The market leader Balaji have 90% market share in Chips and 70% share in Namkeens also. Many other competitors like Uttam, Sushma, Real, Everest, Shayam sundar, Samrat are also there in the present market The other side of competition can be measure on the basis of profit margin of retailers.

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For example: Though Atop gives 20% margin on 5 rupee packet of Chips, retailers prefer to sell Balaji because Balaji gives 15% margin but its turnover ratio of product s is 2 to 3 times higher than Atop. Fresh stock (Inventory Turnover) is very important in the industry because whole game rotates around it. Those who can provide better fresh stock can capture more market share. Because of in food industry freshness of good is main reason to acquire market. Competitions generally rely on Fresh stock, Packaging, Margin & Credit to the Retailers, Price, and Promotion. Each and every competitor wants it products to be available at every nook and corner.

Differentiation is generally done on the basis of packaging and attributes like Freshness, Healthiness, and Convenience etc. are added.

Bargaining Power of Buyers:

Here in this sector, we should consider the bargaining power of the retailers. Retailers ask for more schemes from small players because consumers prefer Balaji chips as well as Namkeens so retailers have high turnover ratio from strong brand Balaji. Many local players prefer to give schemes to retailers and do business on credit for 8 to 10 days. If they do not give such schemes or credit many retailers are not ready to sell their products.

Bargaining power of Suppliers:

44

Here in this sector bargaining power of suppliers play very important role. There are many players in the market so suppliers have wide range of options. The wafers market is mainly based on Potato suppliers. Giant companies like McCain purchase potatoes from suppliers in huge quantity and give good price also. Sometimes small players cannot afford it so it affects on pricing policy of the company.

Threat of substitutes:
This is the major threat, which lies in the industry. Products are not close substitutes of each other. But still it is important for the companies maintain a proper differentiation strategy by keeping the track of consumer preferences in mind. Continuous change on the basis of attributes like Price, Promotion, Packaging, and Convenience etc is observed. POPS become very important factor because visibility is the major factor, which determines the ultimate sales. Companies pay extra for shelf space of their desire to improve visibility of their product.

Potential Entrant:
It is not so difficult for smaller player to enter in to the market as there are no major entry barriers. To maintain potentiality, a company should have wide network and huge investment to start manufacturing unit. But only threat is stiff competition a new entrant has to face from the giant companies like Balaji.

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Any new entrant has to spend lot of money on advertisement to influence the consumers to buy the products. Again fresh stock is very important to have impact in the mind of consumers.

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SWOT ANALYSIS

Strengths:
Adequate demand in the market. Reasonable margin available. Flexibility of Product Mix Availability of raw material Expertise and technical capabilities in production of snack products.

Weaknesses:
Logistics of procurement 47

Problematic distribution Competition

Opportunities:
Value addition Export potential

Threats:
Fluctuation in prices of raw materials New entrance of big players and also local players

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RESEARCH PROCESS

Problem Definition:
How to improve market share of ATOP in Ahmedabad? Research Objectives: To find out ways and strategies to improve market share of ATOP in Ahmedabad To study the distribution effectiveness in Ahmedabad To study Retailers and Consumers Behaviors & Satisfactions. To Study Sales Team Motivation, Preferences, Satisfaction. 50

 Research Design:
Descriptive research design Primary Data Collection: Survey method for primary data collection which include - Questionnaire method (Retailers) - Observation method Secondary Data Collection: - Data also collected from web- Surfing at Internet site - Subject related books also referred. - Newspapers like Times of India, Economic Times were also referred.

Targeted population Retailers selling Atop products and consumers in Ahmedabad. Sample size 100 retail shops were covered from surrounding areas of Ahmedabad.

Analysis of data:
General Data Analysis. Graphs, charts are used for the purpose of analysis.

Findings & conclusions:

It will based on

51

Questionnaire filled up. Interpretation of Collected Data. Data analysis. Research facts. Secondary data.

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 SAMPLE SIZE- 100 RETAILERS IN AHMEDABAD

NUMBER OF RETAILERS SELLING BRANDED AND NON-BRANDED WAFERS AND NAMKEENS

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Type

of

wafers

and Number of retailers 81 19

Namkeens Branded Non-branded

0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Branded Non branded 81% 19% Branded Non branded

INTERPRETATION:

Consumers prefer branded Wafers and Namkeens; it

concludes non branded Wafers and Namkeens are not the problem for ATOP food.

NUMBER OF RETAILERS STOCKING ATOP NAMKEEN AND OTHER BRANDS

WAFER

AND

54

Brand ATOP Balaji Others

Percentage of retailers 6% 70% 24%

INTERPRETATION: Atop has its own market but comparatively well than market
leader Balaji. So atop has to reposition its brand.

VARIETY OF BRANDS STOCKED BY RETAILERS

55

Brand Atop Balaji Frito lay Samrat Real Bingo Everest

Percentage of retailers 6% 70% 6% 8% 4% 3% 3%

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INTERPRETATION: Retailers stocks different varieties of brands for consumer

preference. Atop has average availability among them.

WHY RETAILERS SELL ATOP WAFERS AND NAMKEEN?

Factors Fresh stock Margin Credit Brand Market visit Services

Percentage of retailers 5% 35% 27% 6% 20% 7%

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INTERPRETATION: All retailers have different perspectives regarding Atop

products. A company should concentrate on the retailers whose ask for fresh stocks.

RETAILERS PERCEPTION TOWARDS BRAND AWARENESS

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Brand Atop Namkeens Atop wafers

Percentage of retailers Excellent Good Poor 11% 49% 40% 4% 25% 71%

INTERPRETATION: Retailers have good awareness regarding Atop Namkeens

than its wafers. Especially loose namkeen is doing well in the market.

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RETAILERS PERCEPTION TOWARDS MARKET VISIT

Brand Atop Balaji Others

Percentage of retailers Excellent Good Poor 20% 53% 27% 68% 32% 30% 40% 2% 28%

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

68% 53% 40% 32% 20% 2% Excellent Good Poor 30% 27% 28% Atop Balaji Others

Percentage of retailers

60

INTERPRETATION: ATOP visits market very frequently than other competitors

but not better than BALAJI; the market leader. But market visit is not important because if there is not enough stock and Sales officer goes for market visit, it does not matter more for a company.

RETAILERS PERCEPTION TOWARDS SERVICES

Brand

Percentage of retailers Excellent Good 26% 18% 52% Poor 64% 8% 22%

Atop Balaji Others

10% 74% 26%

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

74% 64% 52% Atop Balaji 26% 10% 26% 18% 22% 8% Others

Excellent

Good

Poor

Percentage of retailers

61

INTERPRETATION: ATOP do not provide good service to the retailers than any
other companies available in the market especially in the case of stock delivery.

PRICE COMPARISON OF ATOP WAFERS AND NAMKEENS AND OTHERS Generally all the players in the snacks industry have not big different in the price. But

we can compare quantity of the different products in different packet. Suppose Balaji gives 25gm in 5 rupee whereas Atop gives 20gm in 5 rupee. Thus Balaji gives more quantity than Atop. So quantity play very important role to compete with market leader Balaji. If Atop gives equal quantity, it is more affordable to retailers to sell it.

INTERPRETATION:
A company should provide enough quantity to stay long-term in the market

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 MARGIN COMPARISON PLAYERS

OF

ATOP

WITH

OTER

Factors
Atop Balaji

margin
Retailers 22% 18% Distributors 7.50% 7%

25% 20% 15% 10% 5% 0%

22% 18% Atop 7.50% 7% Balaji

Retailers margin

Distributors

63

INTERPRETATION: Margin provided by ATOP is very good than any

other players in the market. So margin is not the problem for ATOP.

CREDIT PERIOD ALLOWED TO RETAILERS BY ATOP AND BALAJI

Brand
Atop Balaji

Credit period in days

10 0

64

Credit period in days

10 8 6 4 2 0 Credit period in days Atop 10 Balaji 0

INTERPRETATION:

Atop provide distributors as well as retailers.

enough

credit

periods

to

DISTRIBUTION NETWORK

MANUFACTURE MANUFACTURE

SUPER STOCKIEST

DISTRIB

CUSTOMER CUSTOMER

RETAILER RETAILER 65

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SALES REPRESENTATIVE AT ATOP

Sales representatives have the experience of around 8 years in the field of the sales. This is a very good sign for the company as they have got very experienced and efficient sales force, which can do wonders in the field.

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As per the conversation with them they have no problem in placing POPS at the retail counters.

They use POPS like: 1. Posters 2. Displays 3. Stickers 4. Banners

According to the sales team following attributes help them in placing the product at retail counter in the given order: 1. Effective Sales Pitch 2. Schemes 3. POPS 4. Change in Packaging

According to them the following products of Atop are doing well in market Place: 1. Atop Chatpatta 2. Atop tomato wafers 3. Atop ratlami sev 4. Atop banana wafer

The only problem is that the product of ATOPs wafers and namkeen is considered as old stock compare to its main competitor Balaji so it is difficult to push product in the Market.

Most of them are not satisfied with their salary structure. This could result in decrease in motivation of the sales team.

68

They want company to bring out various incentive schemes for them base on target.

SALES REPRESENTATIVE AT ATOP

FINDINGS

69

A service in terms of replacement of expiry stock is a big problem, which Retailers are facing.

Problem of old stock i.e. stock with old manufacturing date is a major problem that ATOP is facing because what retailers feel that the consumers are becoming more aware of the manufacturing date. They dont buy products with old manufacturing date.

The other major issue is air leakage in the packaging.

Retailers are also facing the problem of Claims. A company does not pass their claim on time.

Sometimes a company does not maintain the size of order, as well as logistic service is not good.

A company is not providing enough advertisement materials also so they cannot make customers aware about brand.

A company is also not good at Advertisement campaign

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SUGGESTIONS & RECOMMENDATIONS

71

Our Research shows that Freshness and Healthiness are most important attributes in snacks. So that Company should use this and try to position its products as Fresh and Healthy.

ATOP should increase it inventory turnover ratio to match with its main competitor.

ATOP should focus on improving its PUSH STRATEGY by providing good margin, credit period, and promotional schemes, packaging to retailers.

It should also improve its services in terms of clearing expired stock from the retail outlets.

A company should take care of price of loose namkeen and for this they have to stabilize it pricing policies. To penetrate more promptly in the chips market a company should give quantity at least equal but not less than competitors.

Creative advertisement and promotional strategy has to be thought for the different products of ATOP

It has to place more POPs at the retail outlets and in turn try to push the product.

It can increase its focus on the mega stores like Reliance Mega mart and Big Bazaar and retail outlets like Subhiksha, More, Reliance fresh etc.. A company should try to put as much product as they can. They also have to keep in mind the shelf space while placing the product at these stores.

72

Attractive schemes should be given to Retailers during off-season also to have the product visibility all round the year and influence the customer to buy because visibility leads to temptation.

73

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CONCLUSION
Atop is doing well in the some areas of Gujarat and have good brand name also but major city area like Ahmedabad has not good market share. Atop is not doing well in the market. In spite of good distribution network, the brand has not created good brand name in the market. There are many reasons responsible for that. Atop has bright past with it since its launching in 2005 but after that tough competition and certain issue have crated problem for the ATOP.

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BIBLIOGRAPHY
Sites Referred
www.atopfood.com www.tradeindia.com www.samratnamkeen.com www.businessstandard.com www.businesstoday.com www.balajiwafers.com www.ficci.com

Books referred
Marketing Management 12h Edition by Philip Kotler Business research methodology Donald R. Cooper (Author), Pamela S. Schindler (Author)

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Questionnaires Form
(For Atop wafers/Namkeens)
1. Name: .. 2. Address: 3. Do you sell Wafers/ Namkeens? Yes No 4. Which type of Wafers/ Namkeens do you sell? Branded Non Branded 5. Which brands do you sell? Balaji Atop Frito lay Bingo Other Please Specify. 6. Why do you sell Atop or other wafers/ Namkeens? Fresh Stock Margin Credit Brand

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Market Visit Services Other Please Specify. 7. Why do you sell Atop wafers/ namkeen? Brand Margin Market Visit Services Other Please Specify 8. Please compare Atop Wafers/ Namkeen with Others. Atop wafers/ namkeen Brand Stock Margin Credit Market Visit Service Scheme Excellent Good Poor Fresh Old Higher Lower Allow Not Allow Excellent Good Poor Excellent Good Poor Brand other wafers/ namkeen Excellent Good Poor Stock Fresh Old Margin Higher Lower Credit Allow Not Allow Market Visit Excellent Good Poor Service Excellent Good Poor Scheme

9. Which types of improvement do you recommend? Fresh Stock Margin Credit Scheme Market Visit Services Scheme Other Please Specify 10. Any comment on Atop.

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