Contents Sr.No Particulars Page No 1 Company Profile 1 – 4 2 Executive Summary 5 – 6 3 General Introduction 7 – 9 4 I. Statement of the problem 10 II. Objective of the study III. Scope of the study IV. Limitations of the study 5 Biscuit market in India 11 – 21 6 Research Methodology 22 – 24 7 Findings from Retailer’s (Store) survey 25 – 26 8 Retailer’s insight about the biscuit category 27 9 Store Observations 28 – 29 10 Various in-store communication tools 30 11 Suggestions with respect to retail outlets 31 12 Findings of Shoppers survey 32 – 34 13 Interpretation of Shoppers survey 35 14 Suggestions with respect to shoppers behaviour 36 15 Observations of Shoppers behaviour 37 16 Data Analysis by Hypothesis method 38 – 41 17 Conclusion from the study 42 18 SWOT Analysis of Britannia on the basis of P & S research 43
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Contents
Sr.No Particulars Page No
1 Company Profile 1 – 4
2 Executive Summary 5 – 6
3 General Introduction 7 – 9
4 I. Statement of the problem
10
II. Objective of the study
III. Scope of the study
IV. Limitations of the study
5 Biscuit market in India 11 – 21
6 Research Methodology 22 – 24
7 Findings from Retailer’s (Store) survey 25 – 26
8 Retailer’s insight about the biscuit category 27
9 Store Observations 28 – 29
10 Various in-store communication tools 30
11 Suggestions with respect to retail outlets 31
12 Findings of Shoppers survey 32 – 34
13 Interpretation of Shoppers survey 35
14 Suggestions with respect to shoppers behaviour 36
15 Observations of Shoppers behaviour 37
16 Data Analysis by Hypothesis method 38 – 41
17 Conclusion from the study 42
18 SWOT Analysis of Britannia on the basis of P & S research 43
19 Annexure
Annexure I: Store details 44
Annexure II: Questionnaire for shoppers 45
Annexure III: Bangalore City Map 46
Annexure IV: Store photos 47 – 49
20 Bibliography 50
Company Profile:
In today’s retail world, there are no safe havens-the customer is unpredictable but demands
predictable shopping experiences. RammS India Pvt Ltd has harnessed its vast experience in
understanding the shopper and the retail environment to build a unique set of retail solutions that
help its clients in developing winning retail strategies.
With fifty different clients and many successful projects makes us India‘s only premier retail
agency.
RammS India commenced its operations in the year 1991and today we are an end-to-end retail
solutions provider to some of the best-known business houses in India.
RammS India today has 4 Full Fledged Branch Offices and two service offices headed by well-
experienced management teams to execute Retail programs nationally.
RammS is a part of the MAA Group headquartered in Bangalore.
RammS India a part of Ebeltoft Group:
RammS India is India’s premier retail solutions company, the first and only company from India
selected into the international consortium of retail consultants, the Ebeltoft Group. This
prestigious association is proving to be highly productive and eventful not only to RammS, but to
India as well. It is an opportunity for India to enter the retail market abroad with the help and
knowledge of countries such as the U.S., Europe and Australia.
The Ebeltoft Group provides consulting services through a collaborative global network to a
variety of international retail brands around the world. The group offers consulting services such
as strategy consulting, consumer research, and category management, point of purchase, store
planning & execution, and human resource planning, to retail brands around the world.
E G is a dynamic international consortium of consultants offers paradigm-shifting consulting for
retail and service business around the world. Ebeltoft Group members provide consulting
services to a variety of retailers and suppliers to the retail sector around the world.
1
Ebeltoft network spans countries around the world that includes United States, Italy, Germany,
Brazil, Australia, United Kingdom, Spain, France, Denmark, Canada, Norway, Sweden &
Switzerland.
Some of Ebeltoft members:
McMillan/Doolittle, L.L.P, Chicago, Illinois, USA
J.C. Williams Group Ltd, Toronto, Ontario, Canada
Gouvêa De Souza & Md, São Paulo, Brazil
Fuhrer & Hotz Baar, Switzerland
Kiki Lab Brescia, Italy
Frontline Strategies Pty. Ltd. Melbourne, Australia
Pragma Consulting Twickenham, Middlesex
Gruppe Nymphenburg Retail Consult AG Munich, Germany
The Ebeltoft Group clients include:
Carrefour, HMV, J.C.Penny, Marks & Spencer (UK), McDonald’s, The Body Shop, Vodafone,
Procter & Gamble, Bata International, Unilever, BMW, Chevron, Nestle, Mercedes Benz, British
Petroleum, Coca Cola, British Airways and many more global brands.
Recently the company has formed a strategic partnership with J.C.Williams Group (JCWG)
headquartered in Toronto, Canada with offices in Chicago & Montreal.JCWG is one of North
America’s leading retail and retail related consultancy firm. With 30 years of global retailing
experience, JCWG are pioneers in:
Mall Management
Retail Operations
Merchandising & Productivity
Retail Training & Development
2
This partnership to be called RAMMS-J.C.Williams Group India brings together RammS
knowledge and experience of working with Indian brands and retailers with JCWG’s global
practical, creative and in-depth knowledge of retailing and marketing including up-to-date know-
how and techniques to make retail operations better and more profitable.
RammS India provides retail solution in the following field:
1. Retail Consultancy
a. Shopper Research
b. Retail Communication
c. Category Management
d. Channel Based POP
e. Store Positioning Strategy
f. Retail Manuals
2. Retail Design
a. Retail Identity
b. Point of Purchase
c. Store Planning
d. Visual Merchandising
e. Signage Design
3. National Execution
a. Point of Purchase Execution
b. Merchandising Services
4. Specialized Services
a. Franchise Management
b. Human Resource Services
c. Mystery Shopper
d. Online Services
3
e. Retail Events & Promotions
RammS India’s clientele:
1. Britannia Industries Limited
2. Hindustan Unilever Limited
3. Proctor & Gamble
4. Johnson & Johnson
5. PepsiCo
6. HP
7. Maruti
8. Mahindra
9. Intel
10. HSBC
11. VIP
4
12. Frito-Lay
13. Samsung and many more…
Britannia being one of its clients, RammS India is working out the solution regarding the
BTL (Below the Line) marketing strategy for biscuit category at the General Trade outlets.
Executive Summary:
Globally, as below-the-line (BTL) accounts for an increasingly larger share of marketing and
corporate spends; it would be tempting to conclude that BTL does indeed present a threat to mass
media. Take the forecasts made by several leading global agency networks. One lead agency
network has forecast that its own revenue split between marketing services and advertising,
which stands today at 55:45, is likely to become 70:30 in a few years’ time. Hence, common
perception would tend to agree with the view that mass media is under threat.
However, it’s not BTL that is posing a threat to mass media. Huge changes in consumer buying
behavior and competitive scenario are forcing marketing managers to address consumers in a
more holistic manner. Mass media cannot be their lone warrior in this battle; they need other
weapons which BTL provides. However, one cannot succeed without the other.
5
Brief about the project:
This particular project deals with BTL (Below the Line) marketing research for biscuit category
in general and Britannia biscuit in particular.
Market survey was conducted comprising of 30 outlets and 30 shoppers of biscuits across
various residential/commercial areas in Bangalore.
Kirana/Self Service kirana Stores & Bakeries form the GT (General Trade) also called as
unorganized sector whereas Supermarkets form the MT (Modern Trade) also called as organized
sector.
Simple Random Sampling method was used and the sample comprised mostly residential areas.
The data collected comprised both the retailer’s insight and shoppers buying behaviour at GT
outlets.
Retailer’s (Store) survey was conducted in order to get the retailers insight about Britannia
biscuits in particular and the data was noted in the verbatim form. Keen observation was done at
the stores in order to assess Britannia’s BTL activities and photos were taken to support the
study. (See Annexure IV). For list of store visited see Annexure I.
Shoppers were interviewed one to one as soon as they were leaving the store. A structured
questionnaire was used comprising of 5 questions (see Annexure II) for understanding the
shoppers psyche for biscuit buying process.
The data collected is shown in the form of Pie chart for ease of understanding.
Finally to analyze the data hypothesis method (Chi Square test) was used check the hypothesis
assumed.
Hence the research so conducted is more of a qualitative research wherein subjective -
individuals’ interpretation of events is important, e.g., use of participant observation, in-depth
interviews etc.
6
Also secondary research was done to study the biscuit market in India and various pie charts
were drawn to support the study. The objective was to understand the overall biscuit market
scenario in India.
General Introduction:
A brief about ATL (Above the line) & BTL (Below the line) marketing:
Promotion can be loosely classified as "above-the-line" and "below-the-line" promotion. The
promotional activities carried out through mass media like television, radio, newspaper, etc., are
above-the-line promotion.
The terms 'below-the-line' promotion or communication refers to forms of non-media
communication, even non-media advertising. Below-the-line promotions are becoming
increasingly important within the communications mix of many companies, not only those
involved in FMCG products, but also for industrial goods.
7
Some of the ways by which companies do BTL (below-the-line) promotions are by exhibitions,
sponsorship activities, public relations and sales promotions, like giving freebies with goods,
trade discounts given to dealers and customers, reduced price offers on products, giving coupons
which can be redeemed later, etc.
While it is well documented that advertising spends in India are over Rs 10,000 crore, there is no
rigorous or formal documentation of the spends on BTL. Even in the developed markets of the
West, no one really knows how large the BTL spends are.
A large part of the problem pertains to the way in which BTL spends are incurred. Only part of
the spend happens through agencies in the organised sector. Much larger spends happen through
hundreds of mom and pop shops that you see in every city. Similarly, clients spend a lot of
money directly especially when it comes to trade marketing, entertainment-related events or
endorsements, telemarketing etc. Let me give you a sense of the magnitude of the problem:
Organised sector agencies in India are unlikely to account for anything more than Rs 800-
Rs1000 crore even if one includes everything—DM, sales promotions, events, retail, branding,
telemarketing, PR, marketing consultancy etc. But a lot more happens through small outfits and
direct spends by clients.
BTL promotions are gaining popularity among all big companies nowadays considering their
effectiveness because of the "individual customer promotion" at a price, which is much lesser
than the normal media promotions.
Key drivers of BTL
In difficult or uncertain economic environments, marketing managers will divert their spends to
where ROI is likely to be greatest and fastest. BTL is perceived to deliver this.
Fragmentation of markets and media options
Consumers are more aware and have a large number of choices.
8
If you take the classical model for consumer buying behavior, there are four steps: Awareness,
Interest, Desire, and Action. In the past, when consumers were less aware; when product choices
were limited; and media was not fragmented, it was easier for the mass-media to take a consumer
all the way to the actual action of buying. Let’s look back at the late-80s.
India had not yet opened up its economy and consumers had few choices. If you were a new
brand trying to launch, you would simply place your TV spots on Mahabharat, Hindi films and
Chitrahaar. If you had a good product with a story to tell, and had money to spend on good TV
advertising, you would be home.
The point is: you could effectively use mass media and need nothing else. Today, that’s no
longer true. Mass media can help create awareness for a brand. And this is a must!
Unless a brand or a company interacts with its consumers at all the relevant touch-points, it will
go nowhere. Hence, both ATL (above-the-line or mass media advertising) and BTL have their
respective roles to play, and there’s no point in them seeing each other as a threat. They have to
work together in communicating a unified message through a strategy that’s completely
integrated.
ATL & BTL play complementary roles in fields like FMCG:
• Advertising ensures top-of-mind awareness about the brand and its key benefits
• But because of crowded market, that, by itself, is not enough.
• Extensive consumer contacts called for, in order to demonstrate benefits
• Extensive PoP deployment at retail outlets
• Consumer promotions once/year to reward usage.
• Trade is another focus via incentive programs and rewards.
9
Visual Merchandising & Creative Communication:
Visual Merchandising (VM) is the art of presentation, which puts the merchandise in focus and
in perspective too. It educates the customers, creates desire and finally augments the selling
process.
Visual Merchandising achieves the following:
• Educates the customers about the products and services offered creatively and effectively.
• Enables a successful selling process, from browsing to buying.
• Establishes a creative medium to present merchandise in a lifelike 3-D environment, thus
creating a strong impact and recall value.
• Sets the context of the merchandise.
• Establishes the linkage between fashions, product design and marketing by keeping the focus
on the product.
• Draws the attention of the customers and help them match their needs with the visually
merchandised product.
Statement of the problem:
“Understanding of biscuit shoppers buying Behaviour & Retailer’s (store) insight for
biscuit category at the General Trade outlets”.
Objectives of the study:
1. To study the buying behaviour of the consumers at General Trade outlets.
2. To study the impact of in-store promotion on consumers behaviour.
10
3. To study the retailers (store) insight for the biscuit category in general trade outlets.
Scope of the Study:
This study will prove useful to find out whether the in-store promotional activities like visual
merchandising will help consumers buy the biscuits or indulge them in impulse purchase.
Limitations of the study:
1. Sample size collection was limited to Bangalore city and especially residential
areas.
2. Survey was limited to only General Trade outlets and not Modern Trade outlets.
3. Survey was limited to biscuit shoppers (either only biscuits or biscuit as a part of
overall purchase) and retailers selling biscuits.
4. Shopper’s survey was conducted according to the structured questionnaire while
Retailer’s survey was conducted according the unstructured questionnaire.
Biscuit Market in India:
The multi-billion food and beverage industry comprises several markets, including bakery,
beverage, confectionery, dairy, processed foods and others.
The food processing industry is witnessing a 20% annual growth rate and, consequently, the
demand for processed foods and beverages in the country is constantly on the rise. There are 300
million upper-and-middle-class consumers of processed and packaged food in the country, and
another 200 million are expected to shift by 2010.
11
The annual production of bakery products which includes bread, biscuits, pastries, cakes, buns,
rusk etc is estimated to be 50 lakh tonnes in 2004-05 with estimated value of Rs 69 billion. The
two major bakery industries, viz., bread and biscuit account for about 82 per cent of the total
bakery products.
Indian Bakery sector is indicating significant growth both in terms of volumes and customer
base. The two factors that drive the bakery products are disposable incomes and time constraints
in the working population, according to analysis by Kurt Salmon Associates (KSA), a global
management consulting firm.
Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most
loved fast food products for every age group. Biscuits are easy to carry, tasty to eat, cholesterol
free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West
Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most
industrially developed states, hold the maximum amount of consumption of biscuits. Even, the
rural sector consumes around 55 percent of the biscuits in the bakery products.
The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India
Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10
years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also
surpass the target and hit the global market successfully.
Biscuit Industry in India:
Particulars Details
Leading Countries in biscuit production 1.USA
2.China
3.India
Per capita consumption of biscuit India – 2.1 kg
US,UK,Western Europe – 10 kg
China – 1.9 kg
South East Asian countries – 4.25 kg
12
Biscuit Production(Ratio)
Unorganized: Organized 60 : 40
Scale of Manufacturer in numbers Organized Sector
Large Scale : two
Medium Scale : around 50
Small scale : around 2500
Unorganized Sector
Around 30000 small & tiny bakeries
Annual turnover 8000 crores
Biscuit Production
(2007-2008)
Total: around 26 lakh MT
Organized sector
17.44 Lakh MT
Biscuit Contribution in FMCG Market 7 %
Growth rate of biscuit industry (2007-2008) 15 %
Rural-urban penetration of BiscuitUrban Market : 75% to 85%
Rural Market : 50% to 65%
Estimated Exports (07-08)15 % of annual production
Marketing of biscuitsWholesale and Retail marketing in the Biscuit industry is
carried out with a network of C & F Agencies (for States
/specific Districts) Dealers / Wholesalers and Retail shops
Employment generation3.25 lakh (Direct Employees)
35 lakh (Indirect)
Biscuits are sold throughApproximately 12 lakh retail outlets
More than 80% of the outlets run by small groceries in
comparison just 3% by organised sector.(Source: E&Y 2006)