A Research Project On "Successful Distribution Strategies" A Case of Britannia......................

A RESEARCH PROJECT On Successful Distribution Strategies A case of Britannia.......................
A PROJECT REPORT Submitted by
Sailesh Kapoor Roll no: 201070

Submitted in partial fulfillment of the requirement
MASTERS OF MANAGEMENT STUDIES (Mumbai University) IN MARKETING
GUIDE: PROFESSOR Meghna Manjrekar
INTRODUCTION
The project begins with introduction about the Biscuit industry in India, Research methodology used in the research and Objective of the study, Scope and need of the study, Limitations of the study.It is followed by a brief about the Data Analysis and interpretations, the project report ends with the Conclusions and Findings, Suggestions and Recommendations. The Indian biscuits' market is estimated to be 1.1 million tonnes per annum and valued at over Rs 50 billion. India is known to be the second largest manufacturer of biscuits, the first being USA. It is classified under two sectors: organized and unorganized. The present biscuits bakery sector in India looks like a battlefront. The battle being led by stalwarts like Britannia and Parle with close competition from other companies like ITC, Nutrine, HLL Kissan, Kwality and even international brands like Kellogs, Nestle, Sara Lee and United Biscuits. The unorganized sector in the biscuits segment does exert pressure on the pricing policies of the organized players. But only up to a point since the penetration of brands in this business even in the rural areas is fairly significant. Therefore, the value for only the branded business segment is more indicative of the industry's competitive pressures. Three domestic players, Britannia, Parle and ITC, have thus far dominated the marketwith an average annual growth of 10-12%. According to the Federation of Biscuit Manufacturers of India (FBMI), 60% of the total market is organized and the restunorganized. As per a research conducted in 2009 though ITC was able to increase its market share by a significant percent, Britannia still is the leader with highest volume of sales and value market share. Researcher says that Parle has been Britannias toughest competitor. The biscuit market in India still has lot of room for expansion from the existing players and the new entrants.
EXCECUTIVE SUMMARY
STATEMENT OF PROBLEM Distribution channel (also known as marketing channel) Distribution (or placement) is one of the four aspects of marketing. A distributor is the middleman between the manufacturer and retailer. After a product is manufactured, it may be warehoused or shipped to the next echelon in the supply chain, typically a distributor, retailer or consumer. Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user. The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods manufacturers could never justify the cost of selling direct to their consumers, except by mail order. In practice, if the producer is large enough, the use of intermediaries (particularly at the agent and wholesaler level) can sometimes cost more than going direct.
Many of the theoretical arguments about channels therefore revolve around cost. On the other hand, most of the practical decisions are concerned with control of the consumer. The small company has no alternative but to use intermediaries, often several layers of them, but large companies 'do' have the choice.
OBJECTIVES
To find out the need of effective distribution system in FMCG industry. To find out the various channel used in distribution of biscuits by Britannia. To identify various challenges faced by depots and distributors/wholesalers. To identify solutions which can be used by Britannia in channel management?
NEED OF THE STUDY

Britannia uses Intensive Distribution for its products. This is the ideal strategy for the market leader as intensive distribution plays important role to survive in the business. Britannia Industries LTD uses different forms of distribution channels to reach out to end consumer effectively. The main purpose of study is to determine the effectiveness of each distribution channels used by them and to analyze how it can become more effective. RESEARCH METHODOLOGY PRIMARY DATA For the purpose of collection of primary data two questionnaires will be prepared. One questionnaire will be made for the depots manager or the people involve with the logistics management in the organization and other one would be for the distributors of the organizations. Also to understand the whole supply and logistics part used by the company a visit will made to Depot SECONDARY DATA Journals and Research Paper Reports on distribution and supply chain. Wikipedia STATISTICAL TOOLS: Pie charts Bar graphs Averages Correlation Sampling Theory
REVIEW OF LITERATURE
Abstract: 1 BIL, since its inception had been mainly involved in the manufacture of biscuits, which contributed around 85% of its revenues (1997). The biggest problem then, for the 80- year-old BIL was that its name was strongly associated by customers with biscuits (or more broadly bakery products). With the de-reservation of biscuits from the small sector and commoditisation of the Rs 3500 crore biscuit market, coupled with cutthroat competition after the entry of multinationals and stagnating net profits, BIL looked for a fresher approach to survive and prosper. BIL realised that it would have to scale up its marketing strategy in its main line of business and in addition tap new food categories to grow. One reason why BIL seemed to have woken late was that the company didn't have a proper parent until the French food and beverages major, Danone, acquired RJR Nabisco's holding in the company. BIL seemed to have realised that the time had come to change the rules of the game. It crafted a makeover plan to diversify into new but related areas, and at the same time consolidate and improve its core business, biscuits. By doing so BIL hoped to remain the market leader in biscuits and become a major player in related businesses also. Abstract: 2 Britannia Products are available all over India. Like rural market, urban market, modern trade etc. Britannia biscuits are admiring product and also available in villages. This happened because of effective use of the channels of company. The distribution channel is divided in to three levels manufacture to distributor, distributor to retailer and retailer to consumer. Company policy is to reach out to end consumer with least cost and give him the product with best quality. The company wants to increase its profitability by increasing the distribution channel not only in urban areas but also in rural areas.
http://www.docstoc.com/docs/24775798/4-BRITANNIA-INDUSTRIES-LTD-PROJECT

A Research Project On "Successful Distribution Strategies" A Case of Britannia......................

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A Research Project On "Successful Distribution Strategies" A Case of Britannia......................

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A RESEARCH PROJECT On Successful Distribution Strategies A case of Britannia.......................

A PROJECT REPORT Submitted by

Sailesh Kapoor Roll no: 201070

MASTERS OF MANAGEMENT STUDIES (Mumbai University) IN MARKETING

GUIDE: PROFESSOR Meghna Manjrekar

NEED OF THE STUDY

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