My Sip Main Deep Dey New.pdf

Department of Business Administration

DEPARTMENT OF BUSINESS ADMINISTRATION TEZPUR UNIVERSITY A SUMMER INTERNSHIP REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FORWARDING THE DEGREE IN MASTERS OF BUSINESS ADMININISTRTION, SCHOOL OF MANAGEMENT SCIENCES, TEZPUR UNIVERSITY SESSION: - 2016-2018

“A COMPARATIVE STUDY ON EXTRUDED SNACKS PENETRATION IN GUWAHATI MARKET WITH SPECIAL REFERENCE TO FRITOLAYS”

Under the guidance of: Academic Guide

Organizational guide

Dr. Mridul Dutta

Mr. Keshab Bhattarai

Assistant Professor,

Sales Officer,

Department of Business Administration,

PepsiCo India,

School of Managerial Sciences,

Frito-Lay’s Division,

Tezpur University

Guwahati Submitted by: Deep Dey Roll No:- BAM16030 Department of business Administration, School of Managerial Sciences, Tezpur University Page | 1

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PREFACE

Market provides a key to gain actual success only to those brands which match best to the current environment i.e.” imperative” which can be delivered what are the people needs and they are ready to buy at the right time without any delay. It is perfectly true but this also depends on availability of good quality products and excellent taste and services which further attract and add a golden opportunity for huge sales. This also depends on the good planning approach and provide ample opportunity plus sufficient amount of products for sales in the coming next financial year. This survey report introduces study of consumer’s preferences for Frito Lays (Extruded Snacks). After going through a detail analysis of market behaviour and future prospect, it may also provide an opportunity to the company to frame a good future plan to satisfy maximum needs of the customers and established its guiding role in the market of Guwahati in particular and throughout the country as a whole. The study report will also provide an opportunity to delineate its market potential business areas, products & services are to be offered by the company to the customers. This study report also provides the various factors affecting the services. Marketing Division of Extruded Snacks has to keep in mind various factors specially while preparing a plan for marketing its product or services. Details description along with analysis of surveyed data is being presented in this report.

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ACKNOWLEDGEMENT

I am highly indebted to my project mentors, Mr. Keshab Bhattarai ( Sales Officer) and Animesh Roy , PSR, Frito Lay (Guwahati) for their continuous support, supervision motivation and guidance throughout the tenure of my project in spite of their hectic schedule who truly remained driving spirit in my project and their experience gave me the light in handling research project and helped me in clarifying the abstruse concepts, requiring knowledge and perception, handling critical situations and in understanding the objective of my work. I am also grateful and would like to thank Mr. Devnaryan Sarkar, Unit Manager (East) who gave me such an opportunity to do this project and also for his kind co-operation and help throughout the project. I would like to thank all the staff of PepsiCo India Holdings Pvt. Ltd for their dedication & support, who contributed with insights that reflects their experience in marketing from which I gained a lot. I sincerely thank Dr. Mridul Dutta, Assistant Professor, Department of Business Administration, Tezpur University, for guiding me by his valuable inputs in the project. Lastly, I would like to express my sincere thanks to my parents and friends for the necessary support during the course of my project. Above all, I thank Almighty without whose blessings this project would never have been possible.

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DECLARATION I, Deep Dey, hereby declare that the project work entitled “A comparative study of Extruded Snacks

Penetration in Guwahati, with special reference to FritoLays”, is an authenticated work carried out by me at PepsiCo India Holdings Pt. Ltd, Guwahati, under the guidance of Dr Mridul Dutta, Institutional Mentor and Mr. Keshab Bhattarai, Organization Mentor. I further state that, I have completed this project with sincerity and dedication and left no stone unturned while putting high level efforts, which are the requisites of this job, entrusted to me. This has not been submitted to any other institution/ university for the reward of any degree/ diploma certificate.

Date

14.09.2017

Deep Dey

Place

Tezpur

3rd Semester, MBA Department of Business Administration, School of Managerial Sciences, Page | 4

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Tezpur University, Napaam,

CERTIFICATE This to certify that Deep Dey (Roll no BAM 16030), a student of 3rd Semester MBA, Department of Business Administration, Tezpur university, has carried out the project entitled “A Comparative Study of Extruded snacks in Guwahati Market with Special Reference to Frito Lays” at PepsiCo India, Frito Lay division from 1st June to 31st July, 2013. The study and its report are in partial fulfilment of the course curriculum for the programme of Business Administration, School of Management Sciences, Tezpur University, Assam. He has conducted the work under my supervision and guidance and the work has not been submitted elsewhere for the award of any degree or diploma, either partially or fully, to the best of my knowledge and belief.

Dr. Mridul Dutta Assistant Professor, Department of Business Administration Dated: - 14th September, 2017

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PROJECT AT A GLANCE

Prepared by:

Deep Dey 3rd Semester, MBA Department of Business Administration School of Managerial Sciences, Tezpur university, Tezpur

Report title:

A Study on Extruded Snacks Penetration In Guwahati market with special Reference to Frito-Lays

Organization:

PepsiCo India Holdings Pt. Ltd

Period:

Two months (1st June to 31st July, 2013)

Academic guide:

Dr. Mridul Dutta, Assistant professor, Department of business administration, Tezpur university

Organization guide:

Mr. Keshab Bhattarai Sales officer, PepsiCo, Guwahati

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EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY

Project Title:

A Study on Extruded Snacks Penetration in Guwahati market with special reference to Frito-Lay’s

Organization:

PepsiCo India (Frito-Lay division)

Organization Guide:

Mr. Keshab Bhattarai, Sales Officer, PepsiCo, Guwahati

Academic Guide:

Dr. Mridul Dutta, Assistant Professor, Department of Business Administration, tezpur university

Duration of the project:

1st June to 31st july.

Objectives of the study: 1.

To determine the marketing strategies of the competitor companies. Sub Objectives: a. To study and compare the promotional activities.

2.

To determine market share of different companies dealing with extruded snacks.

3.

To determine the consumer profile of extruded snacks along with their perception.

4.

Recommend how to increase the market share of Extruded snacks. Page | 8

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Research Methodology: The research is a descriptive study including mostly the primary data, observation, and methods of interviews conducted to the retailers and consumers. The data has been collected through faceto- face interview and questionnaire. Statistical tools such as Pie- diagram, bar- diagram and SPSS- 16 have been used to analyse the data. Market studied: Lokhra, Hatigaon, Hengrabari, Bhetapara, Bhootnath, Lal Ganesh, Kahilipara etc. Scope: The study aims at an in- depth study of the Extruded snacks in Guwahati market. The market is divided into small segments so that the survey would be simplified. These segments are- Lokhra, Hatigaon, Hengrabari, Bhetapara, Bhootnath, Lal Ganesh, Kahilipara etc. The research includes a comprehensive study of the convenience channel in the market to formulate strategies and boost sales. The study is confined to the geographical limits of Guwahati. Limitations: 1. The time duration of two months was not enough to survey the whole market, the information collected in this project is highly time bounded hence, it may vary in the course of time. 2. The respondents were not very comfortable while giving information about their stock. 3. Non-cooperative approach and the rude behaviours of few retail outlets respondents. 4. There are chances of biasness in some answers as most of people while in the market places are in a hurry and asking question in such ambience is not very fruitful or good idea. 5. During the survey, the ambience of Guwahati was not well due to extremely hot climate. 6. This report is based on the data & information which was given by the retailers and it has been assumed that they had given correct information.

METHODOLOGY: Sources of Data a)

Primary Data

For my study, the primary sources of data are: 1.

Personal visits Page | 9

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2. b)

Questionnaire Secondary Data 1.

Interaction with the organizational guide

2. Internet

3. Books

Population a) Elements:

All the convenient retailers and consumers of Guwahati.

b) Sampling Unit : Retailers of the convenience stores of the allotted routes in Guwahati city, and c) Time: d) Extent:

the suitable consumers of the city June2013- July 2013-10-02 Guwahati city

e) Sample size: 100 Retailers and 150 consumers. f) Sampling Procedure: Convenience and Judgemental Sampling

MAJOR FINDINGS: FINDINGS FOR OBJECTIVE No.1 and 2 1. The delivery of this Cheetos extruded snack is adequate, but the supply is not according to the demand different flavours. 2. Cheetos extruded snack has a market share of 43 % (approx.) in the Extruded snacks category in the Guwahati city. 3. The various flavours of this product are available but are not present in many outlets. 4. The promotional activity of Cheetos extruded snacks is very less in Guwahati as of which only a few section of the society is aware of its availability. 5. The display is not properly done in some outlets for which they are not easily accessible. Page | 10 Summer Internship Project 2017

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6. Most of the retailers are not aware of all the flavours of this products. 7. In terms of market presence, this product is the market leader and holds the maximum share of in the market. 8. In terms of demand, it is leading brand followed closely by Bikaji. 9. Some of the PSR’s does gives frequent visits in certain areas, Retailers complains that they do not get the product on the right time. 10. Regular service, credit facility and low margin are found to be the major reasons for selling the competitors brands. Some of the retailers prefer these brands for their high profit margin, good discount and other reasons. 11. Lack of space in certain outlets causes improper display of products. 12. The various schemes given by the competitors varies from shops to shops, for display of their products some retailers receive payout quarterly basis, monthly basis or a percentage is given from the sale of their products. 13. The distribution model of competitors is same as that of Frito-Lay Order booking. The salesman visits the retail outlet every week and collects order and supplies it on the same day. 14. Sometimes in some areas where the demand for a product is low, so the retailers denies to keep the competitors product, in those cases the salesman push the products with their core products.

FINDINGS FOR OBJECTIVE No. 3

1. Majority of the respondents said that Cheetos extruded snacks are mostly preferred because it is perceived to be tastier in comparison to other brand of extruded snacks. 2. Majority of the respondents purchases Cheetos more compared to Bikaji, Pran, Parle etc. The main reason is the taste factor. 3. As found after performing a series of chi square tests the following findings have been made:  It was found that the Advertisements doesn’t have any significant influence over a particular gender of the respondents. 4. As found after performing a series of Anova tests the following findings have been made: Page | 11 Summer Internship Project 2017

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 It was found that the preference for different brands of extruded snacks differs with the various age groups of the respondents.

RECOMMENDATIONS: Some of the recommendations are as follows : 1. All the different flavors should be made available with the PSR’s in order to meet the market demands. 2. In order to keep retailer’s active, schemes and gifts should be given timely. 3. More promotional activities should be undertaken by the company in order to create awareness among consumers. 4. It must target the scheduled customers between the age 5-16. 5. Today’s current scenario is totally based on internet, so the company must adopt social media strategy like Facebook, Twitter, Google+, You- tube etc. to reach the wider mass. 6. The company must undertake Customer service goals like1. Increasing Online Customer Service and Interaction. 2. Provide answers to problems online. 3. Become a reliable and gain consumers trust. 7. The Future of the Company Depends On its ability to change and evolve to fit the times. Technology has changed the way companies operate and can be used in many ways to enhance the quality of the extruded snacks. 8. Consumers have changed and companies need to be able to adapt to new practices and approaches such as transparency, sustainability and authenticity. Long Term a. Renewed commitment to mission & of responsibility and sustainability. b. Regaining public trust and consumer support through communication and openness.

Short Term Page | 12 Summer Internship Project 2017

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a. b.

Start to use new approaches to marketing and social media. Listening & connecting with consumers.

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ABBREVIATIONS T.T-

TRADITIONAL TRADE

S.S-

SUPER STOCKIEST

M.T-

MORDERN TRADE

W.S-

WHOLESALE

PSR-

PRE- SELL REPRESENTATIVE

HHD-

HAND HELD DEVICE

F.S.C.O-

FRITO STAR CLUB OUTLET

NCD-

NEW CHANNEL DEVELOPMENT

NPD-

NEW PRODUCT DEVELOPMENT

FSCO GOLD-

FSCO OUTLETS HAVING 2 RACKS

FSCO SILVER-

FSCO OUTLETS HAVING 1 RACKS

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CONTENTS CONTENTS CHAPTER 1: INTRODUCTION 1.1 COMPANY'S PROFILE 1.2 FRITOLAY INDIA 1.3 FRITOLAY GUWAHATI 1.4 ABOUT HE PRODUCT "CHEETOS EXTRUDED SNACKS" 1.5 BRAND HISTORY CHAPTER 2: OBJECTIVES, SCOPE AND LIMITATIONS 2.1 OBJECTIVE OF THE STUDY 2.2 SCOPE OF THE STUDY 2.3 LIMITATIONS OF THE STUDY CHAPTER 3: REASEARCH METHODOLOGY 3.1 POPULATION OF THE RESEARCH 3.2 SAMPLING 3.3 ANALYSIS TECHNIQUE 3.4 STATISTICAL SOFTWARE USED

PAGE NO 18-20 20 20 20-21 21-22

25 25 25-26

29 29 30 30

CHAPTER 4: DISTRIBUTION PROCESS OF FRITOLAY 4.1 OVERVIEW OF DISTRIBUTION OF FRITOLAY PRODUCTION IN GUWAHATI 4.1.1 DISTRIBUTION CHART OF FRITOLAY IN GUWAHATI 4.1.2 FRITOLAY OMPANY AGENDA 4.1.3 STRATEGY OF FRITOLAY 4.2 FINDINGS ABOUT DISTRIBUTION CHANNEL 4.3 RECCOMMENDATIONS

32 32-33 33-40 40-41 41-42 42

CHAPTER 5: ANALYSIS AND INTERPRETATION 5.1 ANALYSIS FROM THE MARKET 5.2 ANALYSIS FROM RETAILERS DATA 5.3 ANALYSIS FROM THE CONSUMERS DATA 5.4 DEMOGRAPHIC FACTORS

44-47 48-54 54-61 61-64

CHAPTER 6: OBSEVATIONS AND FINDINGS 6.1 OBSERVATION FROM THE MARKET 6.2 FINDINGS FROM THE MARKET SURVEY

77 78

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CHAPTER 7: CONCLUSION 7.1 CONCLUSION 7.2 RECCOMMENDATION

80 80-81

BIBLIOGRAPHY ANNEXTURE

LIST OF TABLES

TABLE NO.

PAGE NO

DESCRIPTION

5.2.1

TOTAL SALE OF EXTRUDED SNACKS

49

5.2.2

REGULARITY OF KEEPING EXTRUDED SNACKS IN STORES

50

5.2.3

PRESENCE OF DIFFERENT BRANDS OF EXTRUDED SNACKS IN EVERY OUTLETS

51

5.2.4

OVERALL SALE OF DIFFERENT BRAND OF EXTRUDED SNACKS

52

5.2.6

SATISFACTION LEVEL OF RETAILERS WITH DISTRIBUTION PROCESS OF EXTRUDED SNACKS

54

5.2.7

AWARENESS OF PROMOTIONAL SCHEMES OFFER BY FRITOLAYS

54

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LIST OF FIGURES FIGURE NO TITLE

PAGE NO.

5.1.1

TOTAL NO. OF RETAIL OUTLETS SERVED BY FRITOLAY

45

5.1.2

MERCHANDISING TOOLS- DIFFERENT TYPES OF RACKS

46

5.1.3

TOTAL NUMBER OF RACKS AND HANGERS OF DIFFERENT BRANDS

46

5.1.4

RACK PURITY OF EVERY RETAIL OUTLETS

47

5.1.5

FULL DISPLAY OF RACKS, HANGERS IN RETAIL OUTLETS

48

5.2.1

TOTAL SALE OF EXTRUDED SNACKS

49

5.2.2

REGULARILTY IN KEEPING EXTRUDED SNACKS STOCKS IN STORES

50

5.2.3

PRESENCE OF DIFFERENT BRANDS OF EXTRUDED SNACKS IN EVERY OUTLETS

51

5.2.4

52

5.2.6

OVERALL SALES OF DIFFERENT BRANDS OF EXTRUDED SNACKS DECIDING FACTORS FOR THE RETAILERS FOR KEEPING THE DIFFERENT BRANDS OF EXTRUDED SNACKS SATISFACTION LEVEL OF THE RETAILERS WITH THE DISTRIBUTION PROCESS OF EXTRUDED SNACKS

5.2.7

AWARENESS OF THE PROMOTIONAL SCHEMES OFFER BY FRITOLAY

55

5.3.1

RESPONDENT PROFILE

56

5.3.2

56

5.3.3

2AWARENESS OF EXTRUDED SNACKS AMONG RESPONDENTS SOURCE, THROUGH WHICH CONSUMERS CAME TO KNOW ABOUT THE ACCESSIBILITY OF THE PRODUCT EXTRUDED SNACKS

5.3.4

PREFERENCE OF EXTRUDED SNACKS

58

5.3.5

PREFERENCE OF VARIOUS SCHEMES IN THE EXTRUDED SNACKS PRODUCTS

59

5.3.6

60

5.3.8

RESPONDENTS WHICH LOOKS FOR VARIOUS SCHEMES THE ROLE OF ADVERTISING TOWARDS RESPONDENTS PREFERENCE OF HAVING EXTRUDED SNACKSPURCHASE OF ANY EXTRUDED SNACKS PRODUCT RECENTLY AFTER COMING ACROSS ANY ADVERTISEMENT

5.3.9

WAY IN WHICH ADVERTISEMENT INFLUENCES THE RESPONDENTS

62

5.3.10

AGE

63

5.3.11

SEX

63

5.3.12

MARITAL STATUS

64

5.3.13

EDUCATIONAL QUALIFICATIONS

65

5.2.5

5.3.7

53 54

57

60 61

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CHAPTER 1: INTRODUCTION 1.1 COMPANY'S PROFILE 1.2 FRITOLAY INDIA 1.3 FRITOLAY GUWAHATI 1.4 ABOUT HE PRODUCT "CHEETOS EXTRUDED SNACKS" 1.5 BRAND HISTORY

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1.1 COMPANY’S PROFILE

PepsiCo India PepsiCo entered India in 1989 and has grown to become the country’s largest selling food and Beverage Company. One of the largest multinational investors in the country, PepsiCo has established a business which aims to serve the long term dynamic needs of consumers in India. PepsiCo nourishes consumers with a range of products from treats to healthy eats that deliver joy as well as nutrition and always, good taste. PepsiCo India’s expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Mirinda and Mountain Dew, in addition to low calorie options such as Diet Pepsi, hydrating and nutritional beverages such as Aquafina drinking water, isotonic sports drinks - Gatorade, Tropicana 100% fruit juices, and juice based drinks – Tropicana Nectars, Tropicana Twister and Slice, non-carbonated beverage and a new innovation Nimbooz by 7Up. Local brands – Bikaji Evervess Soda, Dukes Lemonade and Mangola add to the diverse range of brands. PepsiCo’s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG. It manufactures Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chips and traditional snacks under the Kurkure and Bikaji brands and the recently launched ‘Doritos’ savoury crackers. The company’s high fibre breakfast cereal, Cheetos Extruded snacks, and low fat and roasted snack options enhance the healthful choices available to consumers. Frito Lay’s core products, Lay’s, Kurkure, Uncle Chipps and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats and all of its products contain voluntary nutritional labelling on their packets. The group has built an expansive beverage and foods business. To support its operations, PepsiCo has 36 bottling plants

in India, of which 13 are company owned and 23 are franchisee owned. In addition to this, PepsiCo’s Frito Lay foods division has 3 state-of-the art plants. PepsiCo’s business is based on its sustainability vision of making tomorrow better than today. PepsiCo’s commitment to living by this vision every day is visible in its contribution to the country, consumers and farmers.

PepsiCo nourishes consumers with a range of products from tasty treats to healthy eats that delivers enjoyment, nutrition, convenience as well as affordability. Establishments: Page | 19 Summer Internship Project 2017

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PepsiCo established its business operations in India in 1989 and has grown to become one of the country’s leding food and beverage companies. One of the largest multinational investors in the country, PepsiCo has established a business which aim to serve the long dynamic needs of consumers in India. Investment: PepsiCo India and its partners have invested more than USD 1 billion since the company was established in the country. Employment: PepsiCo India provides direct and indirect employment to 150,000 people including suppliers and distributors. Brand facts: PepsiCo nourishes consumers with a range of products from tasty treatsto healthy eats that delivers enjoyment, Nutrition, convenience as well as affordability. Beverages: PepsiCo India expansive portfolio includes iconic refreshment beverages Pepsi, 7 UP, Nimbooz, Mirinda and Mountain dew, in addition to low calorie options such as diet Pepsi, hydrating and nutritional beverages like the Aquafina drinking water, Tropicana 100% fruit juices like- Tropicana Nectars, Tropicana twisters and Slice. Local brands- Bikaji namkeen everess soda, dukes’ lemonade and Mangola add to the diverse range of brands. Foods: PepsiCo food division, FritoLay, is the market leader in the brand of salty snack market and all the FritoLay roducts are free from trans- fat and MSG. It manufactures Lay’s potato chips, Cheetos extruded snacks, Uncle chips and traditional snacks under the Kurkure and Bikaji Namkeen brands. The company’s high fibre breakfast cereal Cheetos extruded snacks, and low fat and roasted snack options enhances the healthful choices available to consumers. FritoLay’s core products, Lay’s , Cheetos, kurkure, Uncle chips are cooked in rice Bran oil to significantly reduce saturted fats.

MISSION "To be the world's premier consumer Products Company focused on convenience food and beverages. We seek to produce healthy financial rewards to investors as we provide opportunities for growth and enrichment to our Page | 20 Summer Internship Project 2017

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employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity." VISSION "To build India’s leading total beverage company, delighting consumers by best meeting their everyday beverage needs, and stakeholders, by delivering performance with purpose, through our talented people." PepsiCo Sustainability Vision "PepsiCo’s responsibility is to continually improve all aspects of the world in which we operate – environment, social, economic – creating a better tomorrow than today" Tomorrow better than Today.

1.2 FRITOLAY INDIA PepsiCo’s food company Frito Lay, is the market in the branded salty snack market and all FritoLay products are free of trans- fat and MSG. It manufacture Lay’s Potato Chips, Cheetos extruded snacks, Uncle Chips, and traditional snacks under the Kurkure and Bikaji Namkeen brands and “Aliva”savory crackers. The company’s high fibre cereal, Cheetos, extruded snacks, and low fat and roasted snack options enhance the healthful choices available to consumers. FritoLay’s core products, Lay’s , Kurkure, Uncle chips and Cheetos are cooked in Rice Bran Oil to significantly reduce saturated fats.

1.3 FRITOLAY GUWAHATI Frito Lay division, a part of PepsiCo India Holdings Pvt. Ltd, came to Guwahati in the year 1994 and initially it had only one distributor located in the area of Rajgarh. Later, with the rising demand of FritoLay in the Guwahati market FritoLay established more distributors situated all over Guwahati for efficient functioning. The entire supply of Guwahati is initiated by the C& F agents from the depot. Now, the depot of FritoLay division is located in Sansari Guwahati which is India’s largest godown of FritoLay products. Since the early stage, the sales of Frito Lay always showed an upward trend. The monthly average sales of Frito Lay products in Guwahati is about 1.3 crores(approx.).

1.4 ABOUT THE PRODUCT “CHETOOS EXTRUDED SNACKS” Page | 21 Summer Internship Project 2017

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The extruded snacks market has significantly expanded in recent years as more manufacturers capitalize on innovations to create unique offerings. Dynamic twin-screw extrusion barrel and die designs—along with a revitalization in co-extrusion techniques—have helped bring a wide range of new products onto the market to join the ranks of well-known category staples.

History Cheetos, a global brand, launched in India in 1995 has been positioned as a brand which inspires imagination and a sense of adventure and fun. Chester- The Cheetos Mascot Chester Cheetah is Cheetos’ brand mascot. Chester Cheetah is the “Cool Cat” who accompanies kids in their adventures. Chester is wild and witty, wears cool sun glasses and is great fun to be with. Most importantly, Chester Cheetah is crazy for Cheetos. The Cheetos portfolio The Cheetos portfolio comprises of a range of exciting shapes and flavours in the extruded segment. The portfolio comprises of Cheetos Masala Balls, Tangy loops, Cheese balls and Cheez Puffs. Quality Standards Cheetos is made using the best quality of raw materials, spices and flavors. All the raw materials used for making your favorite snack are subjected to strict quality control at the reception before using in the product. Strict vendor audits are conducted to ensure best quality at source. The plants where some of your favourite Cheetos variants are manufactured are also audited and certified by various external agencies. These certifications include HACCP and certification by TQCSI(Australia), which confirms that the products are manufactured in Food Safety Environment and the manufacturing process has adequate controls to track products. Strict hygiene and sanitation standards are followed for the equipment’s, processes and facility used for manufacturing of Cheetos. American Institute of Baking (USA), one of the best auditing bodies for confirming process and product safety. The great looking packs of Cheetos are packed under unique hygiene conditions. Page | 22 Summer Internship Project 2017

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A complete facility of bulk storage, transfers, packing and clearances are under surveillance for infestation as per PepsiCo India standards.

1.5. BRAND HISTORY Cheetos (formerly styled as Chee-tos until 1998) is a brand of cheese-flavored, puffed cornmeal snacks made by Frito-Lay, a subsidiary of PepsiCo. Fritos creator Charles Elmer Doolin invented Cheetos in 1948, and began national distribution in the U.S. The initial success of Cheetos was a contributing factor to the merger between The Frito Company and H.W. Lay & Company in 1961 to form Frito-Lay. In 1965 Frito-Lay became a subsidiary of The Pepsi-Cola Company, forming PepsiCo, the current owner of the Cheetos brand. In 2010, Cheetos was ranked as the top selling brand of cheese puffs in its primary market of the United States; worldwide the annual retail sales totaled approximately $4 billion. The original Crunchy Cheetos are still in production but the product line has since expanded to include 21 different types of Cheetos in North America alone. As Cheetos are sold in more than 36 countries, the flavor and composition is often varied to match regional taste and cultural preferences—such as Savory American Cream in China, and Strawberry Cheetos in Japan. Cheetos were invented in 1948 by Fritos creator Charles Elmer Doolin, who cooked early test batches in the Frito Company's Dallas, Texas-based research and development kitchen. The cheese-flavored snack sold quickly, but Doolin did not have the production or distribution capacity to support a nationwide launch. This led Doolin to partner with potato chip businessman Herman W. Lay for marketing and distribution, and Cheetos were introduced nationally in the U.S. in 1948 along with a potato product called Fritatos. The success of Cheetos prompted Doolin and Lay to merge their two companies in 1961, forming Frito-Lay Inc. At the time, Cheetos was one of four large snack food brands produced by the company, which had annual revenues of $127 million.Frito-Lay merged with the Pepsi-Cola Company to form PepsiCo in 1965, prompting further distribution of Cheetos outside of North America. While Cheetos was the first snack food of its kind, competing products in the snack food category have since emerged—including Utz Cheese Curls, Herr's Cheese Curls and Wise Cheez Doodles. Most of the competing cheese-flavored snacks are distributed in specific regions of the U.S., and as of 2010 Cheetos remains as the topselling cheese puff in America. As of 2011, Cheetos are produced, marketed and distributed under three different PepsiCo operating divisions: PepsiCo Americas Foods (which includes Frito-Lay in the United States and Canada,Sabritas in Mexico and Latin Americas Foods in Brazil, Colombia, Argentina, Venezuela and Peru.), PepsiCo Europe and PepsiCo Asia, Middle East & Africa. PepsiCo also granted a license to the Strauss-Elite company to distribute the Cheetos Page | 23 Summer Internship Project 2017

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snack. In 2010, worldwide annual sales of Cheetos totalled approximately $4 billion, making it the 11th-largest PepsiCo brand. he first Cheetos product was Crunchy Cheetos, invented in 1948 in San Antonio, Texas. Crunchy Cheetos remained the brand's sole product for 23 years until the introduction of Cheetos Puffs in 1971. The baked varieties, otherwise known as Baked Cheetos, became available beginning in 2004. As of 2010, there are 21 different variants of Cheetos snacks distributed in the United States. In addition to the original Crunchy Cheetos, Cheetos Puffs and Baked varieties are sold in alternate shape and flavor variations—including a spicy variety known as Flamin' Hot Cheetos. Cheetos are among the snack varieties included in the Frito-Lay Munchies snack mix. With the introduction of Frito-Lay's Natural Line, Cheetos Natural were introduced in the mid-2000s, with all natural ingredients, and natural, and real Wisconsin white cheddar, Cheetos Natural are unique for Cheetos. They accompany others in the Natural line, and are a direct competitor to other natural competitors, such as Pirate's Booty. Cheetos first entered Brazil in 1976,followed by other countries such as Australia during the 1980s. In 1994, Cheetos became the first American brand of snack food to be made and distributed in China. As the distribution of Cheetos expanded outside the U.S. to include more than 36 different countries,localized versions were produced to conform to regional tastes and cultural preferences. Frito-Lay conducted extensive testing before settling on flavors for the Chinese market, with ranch dressing, North Sea crab, smoked octopus and caramel being passed up for two flavors: Savory American Cream and Zesty Japanese Steak. These flavors were produced as the result of focus group testing, in which the original Crunchy Cheetos did not test as well. Strawberry Cheetos, a variation of the original Crunchy Cheetos dipped in a flavored icing, are produced and distributed in Japan.In India, Cheetos Whoosh are sold, made of ingredients such as whole grain and vegetables Also produced in Japan are Mountain Dew-flavored Cheetos. The sole Cheetos product produced in Australia is Cheetos Cheese & Bacon Balls. Cheetos come in all different colors. In 2015, Cheetos rolled out a limited edition cinnamon sugar-flavored snack called "Sweetos" to US markets. Sweetos was the first sweet snack that Cheetos has released in the brand's 67-year history.

1.6 EXTRUDED SNACKS INDUSTRY Technavio’s market research analysts predict that the global extruded snacks market will grow at a CAGR of around 4% by 2020. Nowadays, the consumers are more attentive about their snacking habits and are increasingly adopting healthy snacking foods such as extruded snacks because of their metabolic benefits. Healthy snacking Page | 24 Summer Internship Project 2017

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is also considered as a complement to weight-loss plans, and these snack foods provide the required vitamins and nutrients that a body needs. The nutritional contents of extruded snacks can be altered by modifying the digestion capability of protein and starch while the low GI and high bioactive containing extruded snacks can be customized to maintain balanced nutrition. The growing demand for healthy snacking and weight management will drive the global extruded snacks market during the forecast period. The market is highly fragmented because of the presence of numerous small and large vendors who compete on the basis of price, quality, innovation, service, reputation, distribution, and promotion. The growth opportunities of these market players depend on the changing consumer spending pattern, regional, national, and local economic conditions, and demographic trends. Intense competition prevails in the market where the vendors are focusing on offering innovative products to meet the consumers' tastes.

1.7 COMPETITORS’ BRAND 

BIKAJI

One of the leading industry for nankeens and extruded snacks. The demand for Bikaji is very high in the market for its taste and quantity.

 PARLE Parle has been delivering its promises to its customer with its attractice promotional schemes in the market.

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 PRAN This is one of the new competitor emerging in the market. It has given enormous comprtition in the field of extruded snack market. Leading product of pran is Potato Crackers.

 OTHERS Here the competitors are poducts like Diamond’s Rings and other local products like vroom, Krish etc

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CHAPTER 2: OBJECTIVES, SCOPE AND LIMITATIONS 2.1 OBJECTIVE OF THE STUDY 2.2 SCOPE OF THE STUDY 2.3 LIMITATIONS OF THE STUDY

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2.1 RESEARCH OBJECTIVES & SUB- OBJECTIVES The objectives and sub- objectives of the study are as follows. 

To determine the marketing strategies of the competitor companies. Sub Objectives:

I.

To study the Logistical Infrastructure of the company.

II.

To study and compare the promotional activities 

To determine market share of different companies dealing with this snacks.



To determine the consumer profile of extruded snacks along with their perception



Recommend how to increase the market share of Cheetos extruded snacks.

2.2 SCOPE OF THE STUDY The study aims at an in- depth study of the Cheetos Extruded snacks in Guwahati market. The market is divided into small segments so that the survey would be simplified. These segments are Lokhra, Hatigaon, Hengrabari, Bhetapara, Bhootnath, Lal Ganesh, Kahilipara etc. The research includes a comprehensive study of the convenience channel in the market to formulate strategies and boost sales. The study is confined to the geographical limits of Guwahati.

2.3 LIMITATIONS OF THE STUDY Responsible managers & personals in the marketing department of PepsiCo India Holdings Pvt. Ltd (FRITOLAYS) provides necessary assistance to me in my study of “A Comparative study of extruded snacks in Guwahati market with special reference to Frito Lays Cheetos Extruded snacks”. They discussed different aspects & functions of marketing as practical PepsiCo India Ltd. Almost all the necessary information was provided to me in the support of this project report.

However there are some problems, which cannot escape from. The limitations faced, felt or expressed by me are as follows –

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1. The time duration of two months was not enough to survey the whole market, the information collected in this project is highly time bounded hence, it may vary in the course of time. 2. The respondents were not very comfortable while giving information about their stock. 3. Non-cooperative approach and the rude behaviors of few retail outlets respondents. 4.There are chances of biasness in some answers as most of people while in the market places are in a hurry and asking question in such ambience is not very fruitful or good idea. 5. During the survey, the ambience of Guwahati was not well due to extremely hot climate. 6. This report is based on the data & information which was given by the retailers and it has been assumed that they had given correct information.

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CHAPTER 3: REASEARCH METHODOLOGY 3.1 POPULATION OF THE RESEARCH 3.2 SAMPLING 3.3 ANALYSIS TECHNIQUE 3.4 STATISTICAL SOFTWARE USED

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RESEARCH METHODOLOGY Research is a planned and systematic investigation and analysis of factual data to check, verify or disapprove guesses, clues and assumptions. It supplements the existing body of knowledge and widens the frontiers of understanding. Edwin.b. Fippo defines research as “systematic and purposive investigation of facts with the object of determining the cause and effect relationship among such facts”. Method is a scientific way of doing things to achieve the desired results. In this particular study, the method adopted by me is to increase knowledge & information regarding this project. The major emphasis in such studies is on the discovery of the idea & fruitful relevant information. As such the research design appropriate for such studies must be flexible enough to provide opportunity for considering different aspects of a problem under study. Methodology for fulfilling objective 1The first objective of the study is to determine the marketing strategies of the competitor companies. It has two sub-objectives (1) To study the Logistical Infrastructure of the company and (2) To study and compare the promotional activities As the study is analytical in nature so, In order to achieve the first objective field survey was done. Therefore, in order to fulfil my 1st objective, to determine the marketing strategies of the competitor companies. Data is collected from the retailers of the different routes that were allotted to me by my organizational guide. I conducted the survey with the help of structured questionnaire among 100 retailers of different routes allotted to me in the Guwahati city. Where I interviewed the retailers and gathered the information’s regarding the strategies of the competitor products and thereby analyzed them to build effective recommendations and conclusions. Methodology for fulfilling objective 2The second objective of the study was to determine the market share of Cheetos extruded snacks in Guwahati market for that Firstly, retailers were divided into different segments in terms of geographical location in Guwahati city based on judgmental sampling and then a set of retailers from each segments were chosen applying convenience sampling. Those segments are- Lokhra, Hatigaon, Hengrabari, Bhetapara,, Bhootnath, Lal Ganesh, Kahilipara etc. In order to have a fair knowledge of the market the retailers were personally interviewed and their responses were recorded accordingly. Methodology for fulfilling objective 3The third objective was to determine consumer’s perception for that the main instrument to collect the data for this research was a “structured questionnaire”. A structured interview was conducted through personally Page | 32 Summer Internship Project 2017

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administered questionnaire in order to record the responses of different respondents. The questionnaire was a combination of open ended (to obtain the perception of the respondents) as well as close ended, so as to make easy for the respondents & to get requisite amount of data required for the study. The questionnaire consists of close ended questions as well as open ended questions wherever needed. The various types of questionnaire are : The Survey: Closed Ended Questions: Multiple choices : In this type of question the respondents are provided with sufficient alternative responses. The scale used will be nominal scale since the alternative responses do not follow any order and are dependent of each other. Ranking Questions: Here, the respondents are provided with sufficient alternative responses and the respondents will have to rank the alternative responses based on their responses ( eg: Very High, High, Moderate, Low, Very Low). The scale used will be ordinal scale since ranking of the response will be done according to their preferences will follow an order. Open Ended Questions: In my questionnaire, I have kept open ended questions for the name of the retailers and their average sales per day. Also open ended questions are kept wherever specific answers of the respondents cannot be guaranteed. 3.1.

POPULATION OF THE RESEARCH:

a)

Elements: All the convenient retailers and consumers in Guwahati city.

b)

Sampling unit: Retailers of the convenience stores of the allotted routes of the Guwahati city.

c)

Time: June 2013- July 2013.

d)

Extent: Guwahati

e)

Sample size: 150 respondents and 100 Retailers.

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each of this segments were choosen applying convenience sampling. These segments are- Lokhra, Hatigaon, Hengrabari, Bhetapara,, Bhootnath, Lal Ganesh, Kahilipara etc., etc. In the similar way consumers were also selected based on convenience sampling. 3.3 Analysis Technique: The data collected from the survey has been presented with the help of tables and graphs like Pie- charts, bar diagrams etc, for the convenience in understanding the results and their interpretations. The SPSS package was used to analyse the data and generate the graphs.

3.4 Statistical software used: M. S. EXCEL & SPSS-16.

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CHAPTER 4: DISTRIBUTION PROCESS OF FRITOLAY 4.1 OVERVIEW OF DISTRIBUTION OF FRITOLAY PRODUCTION IN GUWAHATI 4.1.1 DISTRIBUTION CHART OF FRITOLAY IN GUWAHATI 4.1.2 FRITOLAY OMPANY AGENDA 4.1.3 STRATEGY OF FRITOLAY 4.2 FINDINGS ABOUT DISTRIBUTION CHANNEL 4.3 RECCOMMENDATIONS

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4.1 AN OVERVIEW OF THE DISTRIBUTION SYSTEM OF FRITOLAY PRODUCTS IN GUWAHATI

4.1.1 DISTRIBUTION CHART OF FRITOLAY GUWAHATI Plant

CNF

CNF

CNF

Regional Distribution Centre(RDA)

Distributor(SS)

Sub-D

Distributor

Sub-D (SmallTownSub-D

Distributor(TT)

W.S Outlet

Distributor(WS)

Distributor

Distributor(MT)

W.S Outlet

Malls Big- bazaar Retailer

Retailer

Retailer

Retailer

Retailer

CONSUMERS

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Distribution of FritoLay India, the snack food division of PepsiCo India, starts from the raw materials. PepsiCo India’s partnered with more than 15,000 farmers for supply of potatoes. PepsiCo India agro-partnerships with farmers to help them grow and earn more. After the manufacturing of products, it is supplied to the third party godown from there it is supplied to the CNF. From the CNF, it is supplied to the distributors/super stockist. From the distributors it is supplied to the retailers and wholesalers and finally the products reach the consumers. In the remote areas where the distribution of FritoLay’s product is difficult, sub- stockist is assigned for the distribution of products. The CNF for North-East is located in Sansari, Guwahati. Sansari CNF of Frito Lay is the biggest in India. It has a covering area of 45,000 sq. Feet. according to the order CNF orders the product which is delivered from the third party godown to through road ways and sometimes by railways. According to the requirements of the distributors sends drafts to the CNF and then after receiving the draft the CNF sends the required amount of products to the distributors, within Guwahati. Metro Distributors purchase the highest amount of FritoLay products. The CNF makes the payment in monthly basis to the company. In FritoLay there are three types of distributors Retail, Wholesale, and superstockist. The retailers looks after the retail market in the specified areas given by the company. Superstockist supplies the product to the sub distributors which are located in the remote areas. And the wholesalers looks after the wholesale market in the Guwahati city. RETAILERS Retailers are the main focus for the company. Every Retail outlet small or big the company pays equal emphasis so that they provide all the products as per their expectation and maintain a good long lasting relation because the main earning comes from the retailer’s part. This goes to prove that “Retailer is king”. Thereby, PepsiCo helps the retailer to serve its customer better by providing good margin to them for storing there products by the use of merchandising tools to improve the in- store product display, giving racks and non-racks facilities and other offerings, memberships, and promotional schemes etc to them.

4.1.2 FRITOLAY’S COMPANY AGENDA: Range selling: Before more focus was given to the product which sold out fast. But now, the company pays equal heed to every product. Every range of products are sold equally. Whenever there is a slow sale of any product, they check the reasons and takes measures accordingly.

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Introduction of HHD(Hand held device): HHD is an electronic device used by the PSR’s to have an detailed information about all items. It helps to take orders according to the pre- stored inventory info. from the device. It also keeps a track on the working of the PSR’s. Change in the distribution pattern: As the market keeps on changing and with the rise of huge competition in the market, FritoLay changed its distribution pattern from Ready stock (Order and delivery) to Order booking In case of pre-sale the PSR’s directly approaches the outlet of his beat and takes order and delivers him accordingly. The van is stuffed with as much goods as possible and the PSR’s along with their products visits every outlets. But now, with the change in the distribution pattern. In order booking, the PSR’s with the help of HHD visits the retail outlets and takes orders before the day of delivery. And the delivery is made by the van and the merchandiser in the very next day. Segmentation into Racks and Non-racks: The products of FritoLays are segmented in two heads: Racks comprises of the products ranging from Rs.10 and above. And, non- rack products are the hanging products of Rs. 5

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RACKS AND HANGER: There are six types of racks and they are : Type of Rack

Size

SSC A

Very Large

SSC B

Large

MOD A

Medium

MOD B

Large

MOD C

Large

ANTIRODENT

Medium

TRIMURTI

Small

HANGER :

Ariel hanger



Ariel baskets



Kurkure exclusive hanger



New Lay’s flavour hanger

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FRITOLAY PRODUCT DETAILER (APRIL- JUNE 2013)

Products

Flavors

Cost (Rs)

LAYS CHIPS

AMERICAN MAGIC

5/10/20

MASALA SPANISH

5/10/20

CLASSIC SALTED

5/10/20

WEST INDIES (Hot n sweet Chilli)

5/10/20 5/10/20

FRENCH SALT & CRACKED PEPPER 5/10/20

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UNCLE CHIPS

KURKURE

CHILLI LEMON

5/10/20

UNCLE CHIPS(PS)

5/10/20

UNCLE CHIPS(ST)

5/10/20

BOMBAAT CHILLI MASALA

5/10/20

JHAKKAS TOMATO TWIST

5/10/20

MASALA MUNCH

5/10/20/30

DESI BEATS

5/10/20

RAJASTHAN MANCHURIAN

5/10/20

PUNJABI PIZZA

5/10/20

ANDRA BANKOK CURRY

5/10/20

GREENCHUTNEY RAJASTHANI STYLE

5/10/20

NAUGHTY TOMATO HYDERABADI HUNGAMA CHILLI CHATKA

KURKURE PUFFCORN

5/10/20 5/10/20 5/10/20

MAD MASALA

5/10

YUMMY CHEESE

5/10

MAD MASALA

5/10

FUNKY TOMATO

5/10

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MONSTER PAWS

CHEETOS

ALIVA

LAYS BAKED

TWISTEEZ

5/10

MASALA TWISTS

5/10

TEEKHA MEETHA KHATTA

5/10

CHEESY KRUNCHY

5/10

CHEESE PUFFS

5/10

CHINESE BALLS

5/10

MASALA BALLS

5/10

TANGY LOOPS

5/10

SWEET CHILLY

5/15

CREAM HERB

5/15

ORIGINAL SALTED

15/30

CREAM HERB & ONION

15/30

SUNKISSED TOMATO

15/30

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BIKAJI

ALOO BHUJIA

2/5/10/15/30/ 60/193 5/10/15/30/60/ 209

SHAHI MIX

5/10/15/30/60

CHATPATA MIX

2/5/10/15/30

MOON DAL

5/10/15/30/60/193

BIKANERI BHUJIA

5/10/15/30

KARARE PEANUTS

5/10/15/30/60

NAVARATAN MIX

5/10/15/30

KHATTA MEETHA

5/10/30

NUT CRACKER

Total no. of Rack SKU’s = 102 Total no. of Rod SKU’s = 94 Total no. of SKU’s =160 FSC OUTLETS To build a better relationship with the retailers PepsiCo India has launched a program called PepsiCo India snacks star club program in order to increase its overall growth and sustain its market share. Only the elite few retailers are part of this program. Terms and conditions to be fulfilled by the retailers are as follows : Achieve value target as agreed with the FLI salesman Maintain rack purity (100%) In store visibility ( space on counter + agreed shelf.

There are two types of FSC outletsSilver club- Minimum One pure (100% FritoLay product) snack smart A rack/ snack smart b rack/ Customized rack.

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Gold club: Minimum 2 rack- one pure (100% FritoLay product) snack smart A rack/ snack smart b rack/ Customized rack. Another FritoLay pure rack (modular B or A or Antirodent) (100% FritoLay product) OTHER RETAILER BENEFIT OF FSC OUTLET Differentiated merchandising and visibility solution. Differentiated service level- These outlets will get stocks of product that are higher in demand and/ or short supply. Will be preferred outlet for all new products launches and visibility collaterals for building consumer awareness. HOW RETAILERS GET DISCOUNT Benefit 1- value target achievement- Distributor servicing will maintain a record of the billing done the outlet and will pass on the value target. It is also suggested that the retailers should also keep the record of the monthly bills in order to minimise faults. Benefit 2 and 3- Rack space and in store visibility- Salesperson will visit the retail outlets once in the month and will give the score for the rack and the in store visibility. For every month both the discount will be given to the retailers in the first visit by the salesman in the next month. For eg: Total discount for the month of June will be given in the month of July.

4.1.3 STRATEGY OF FRITOLAY “Jo Dikhta hain who Bikta hain” A very strong emphasis is given on the visibility of the products in the outlets. Usually most of the consumers doesn’t come out of their homes simply because they want to buy chips, it is rather believed product which is mostly visible to the customers sells out more. Therefore, FritoLay very often implements schemes related to the display of items which has been very successful. Proper merchandising of the products is done along with the delivery which as a result ensures effective results. Replacement of damaged products FritoLay ensures its retailers that every damaged products except the rodent damaged packets and over expired products will be replaced accordingly. Inspite of the quality packaging of FritoLay product, sometimes damages can be seen due to various reasons. This strategy is adopted by FritoLay to help the retailers recover their losses and helps in maintaing a goodwill with the company.

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New outlet opening This strategy helps to penetrate more into the market and thus, increase the market size of FritoLay. Special care should be taken while opening a new outlet in order to gain the trust and loyalty. Providing tools for merchandising FritoLay provide various tools for merchandising like rack and hanger provided by the company primarily for proper display and safe storage of the FritoLay chips in the outlets. Racks and hangers are generally placed outside the outlets in vacant spaces to ensure more visibility. The racks are of various type which are specially designed on the basis of its capacity to keep the products. Attractive schemes Successful scheme implementation leads to major turnover in the sales. Attractive schemes are always favoured by the retailers which motivate them to purchase higher amount of products. It is a profitable strategy for the company, distributors as well as the retailers.

4.2 FINDINGS FROM THE STUDY OF DISTRIBUTION CHANNEL 1.PSR’s are unable to cover all the outlets in the respective beat as the average market hitting time 10’30 a.m and the shops shut down by 1 p.m for lunch period. 2. Non- merchanized vehicles take more time to reach the market and they are often late than usual market hitting time. 3.The market leaving time is often delayed as the average delivery time per shop is very high. As a result, the PSR’s could not finish their paper works due to lack of time. 4.The retailers find it difficult to manage when the goods are delivered during evening time as there is heavy rush of customers. 5. Some retailers find it difficult because of the changing distribution pattern from ready stock to order booking. 6. Performance of the PSR’s are monitored effectively, and they are motivated so that they perform their best in achieving their targets. 7. The local players are entering the market at high rate through high profit and credit facility. 8. Racks are highly demanded in the market. However due to scarcity, most of the retailers are offended and many refuse to purchase until the racks are supplied.

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9. Many new schemes are introduced in order to attract retailers . which increases the sales very fast and retailers are also happy and satisfied. 10. A good co-ordination between the PSR’s and the merchandisers makes the process of delivery very fast. Thereby, increasing sales. 11. The salesman- Retailer relationship is of most important in sales. A good bonding enhances sales and poor relationship leads to downfall in sales. 12. The weather condition of Guwahati city, Sudden Bandhs etc adversely effects the delivery of goods.

4.3 RECOMMENDATIONS: 1. Motivating the PSR’s: The PSR’s plays a vital role in the distribution process of Frito-Lay. In order to keep them active, motivating them is of most importance. By providing bonus, incentives, appraisals etc. PSR’s can be motivated so that they perform more efficiently. 2. Training & development: Frito-Lay should undertake training and development sessions for the new comer salesman and those are lagging behind in order to improve their inter personal skills. This would help in building their self-confidence and hence, improving their commitment level in their job and it also helps in maintaining a good relationship with the retailers. 3. Special care for New outlets: Special care for the new outlets will help in gaining the loyalty and trust of the retailers. 4. Anti- Rodent Racks for high rodent problem: The company should provide the Anti- Rodent racks on the basis of certain norms in regard to the number of stale products recovered per outlet. Shops with high rodent problems must be given more preferences. 5. More supply of the Racks and Rods: The company must provide more racks and rods in order to meet the demand in the market. 6. Delivery as per order requirements: In case of order and delivery, there should be a close supervision in order to look that whatever quantity of various items is ordered has been loaded in the van to ensure delivery of goods as per order.

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CHAPTER 5: ANALYSIS AND INTERPRETATION 5.1 ANALYSIS FROM THE MARKET 5.2 ANALYSIS FROM RETAILERS DATA 5.3 ANALYSIS FROM THE CONSUMERS DATA 5.4 DEMOGRAPHIC FACTORS

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5.1 ANALYSIS FROM THE MARKET

1. TOTAL NO. OF RETAIL OUTLETS SERVED BY FRITOLAY

Figure5.1.1: Pie- chart showing responses for the total no. of outlet services by Frito Lay

Chart Title 6%

94%

yes

no

Interpretation: From the above diagram, it can be seen that Frito lays provide their services in almost at every retail outlets. 94% of the outlets keep the stock of the company have a good relation with the company.

2. MERCHANDISING TOOLS- DIFFERENT TYPES OF RACKS

Figure5.1.2: Pie- chart showing different types of racks used by the retailers

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RACKS

10%

5%2%

48% 35%

MOD B

ANTI RODENT

SSC B

SSC A

MOD A

Interpretation: The above pie chart shows that 48% of the total rack are of Mod B followed by Anti- Rodent 35%, SSC B 10%, SSC A 5% and Mod A 2%.

3. TOTAL NUMBER OF RACKS AND HANGERS OF DIFFERENT BRANDSFigure 5.1.3: Pie- chart showing the various racks and hangers of different brands

RACKS OF DIFFERENT BRANDS

12% 20% 68%

FRITOLAYS

BINGO

OTHERS

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Interpretation: From the above Pie diagram, it can be seen that maximum presence of assets are of FritoLay i.e. 68% with respect to Bingo and others.

4. RACK PURITY OF EVERY RETAIL OUTLETS Figure5.1.4 : Pie- chart showing the rack- purity of every retail outlet

RACK PURITY

35%

65%

YES

NO

Interpretation: From the above pie diagram it can be seen that 74% of retail outlets have rack purity and the rest of 26% have impure racks. Impure racks are those where the products of different brand are kept together.

5. FULL DISPLAY OF RACKS, HANGERS IN RETAIL OUTLETS

Figure 5.1.5 : Pie- chart showing full display of racks, hangers in retail outlets

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FULL DISPLAY

35%

65%

YES

NO

Interpretation: From the above diagram, we can interpret that 65% of the retail outlets makes a full display of the racks, hangers and rods that are provided to them, whereas, 35% of the retail outlets doesn’t have a full display. The main reason is no rack supply by the company.

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5.2 ANALYSIS OF THE RETAILERS-

1.

TOTAL SALE OF EXTRUDED SNACKS

Table 5.2.1: Table showing responses for the total sale of extruded snacks in the stores

SALES (IN RUPEES)

NO. OF STORES (OUT OF 100)

LESS THAN 500

56

500-1000

28

1000-1500

16

Figure 5.2.1: Bar chart showing responses for the total sale of extruded snacks in the store

TOTAL SALES 60 50 40 30 20 10 0 LESS THAN 500

500-1000

1000-1500

Interpretation: The above bar diagram it can be seen that that the overall sales of extruded snacks of all the brands in every outlets are- “less than 500” is 56% , “500-1000”is 28% and “1000-1500”is 16%.

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2.

REGULARILTY IN KEEPING EXTRUDED SNACKS STOCKS IN STORES:

Table 5.2.2: Table showing the regularity in keeping Cheetos extruded snacks in stores

Estimation

Percentage of stores

Yes

72

No

28

Figure 5.2.2 Graph showing the regularity in keeping extruded snacks in stores

REGULARITY

28%

72%

YES

NO

Interpretation: The above pie diagram shows that 72% of the stores keeps a regular stock of Extruded snacks, and the rest of 28% does not keep a regular stock of extruded snacks.

3.

PRESENCE OF DIFFERENT BRANDS OF EXTRUDED SNACKS IN EVERY OUTLETSPage | 53

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Table 5.2.3 : Table showing responses for the presence of different brands of extruded snacks in every outlets BRANDS OF EXTRUDED SNACKS

MARKET PRESENCE

CHEETOS

82

BIKAJI

78

PARLE

65

PRAN

42

OTHERS

46

Figure 5.2.3 : Bar chart showing responses for the presence of different brands of extruded snacks in every outlets

CHART TITLE

82

78 65

CHEETOS

BIKAJI

PARLE

42

46

PRAN

OTHERS

Interpretation: From the above bar diagram, it can be seen that cheetos and bikaji’s are having a neck-to- neck competition of 82% against 78% followed by Other brands 65% which includes with parle and pran.

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4.

OVERALL SALES OF DIFFERENT BRANDS OF EXTRUDED SNACKS:-

Table 5.2.4 : Table showing the overall sale of different brands of extruded snacks BRAND OF EXTRUDED SNACKS AVERAGE MONTHLY SALES (approx)

PERCENTAGE TOTAL SALES

CHEETOS

12OO

44

BIKAJI

800

30

PARLE

100

4

PRAN

100

4

OTHERS

500

19

OF

Figure 5.2.4 : Pie chart showing the overall sale of different brands of extruded snacks

SALE OF EXTRUDED SNACKS

19% 4% 4%

43%

30%

cheetos

bikaji

parle

pran

others

Interpretation :

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The above graph, shows that cheetos is leading with a share 43% , followed by Bikaji’s by 30% . Parle and pran by 4% share each and Other brands with 19% share.

5.

DECIDING FACTORS FOR THE RETAILERS FOR KEEPING THE DIFFERENT BRANDS OF EXTRUDED SNACKS

Figure 5.2.5 : Bar chart showing responses for the deciding factors for the retailers for keeping different brands of extruded snacks

Chart Title 35 30 25 20 15 10 5 0 cheetos

bikaji margin

parle quality

packaging

pran

others

promo offer

Interpretation: The above diagram, in terms of margin and promo offer bikaji ’s is leading. Whereas in terms of packaging and quality cheetos is leading.

6.

SATISFACTION LEVEL OF THE RETAILERS WITH THE DISTRIBUTION PROCESS OF EXTRUDED SNACKS

Table 5.2.6: Table showing satisfaction level of the retailers with the distribution process of extruded snacks

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RESPONSES

Percentage

Yes

36

No

64

Figure 5.2.6: Pie chart showing the satisfaction level of the retailers with the distribution process of extruded snacks

Chart Title

18% yes no

82%

Interpretation: It can be seen that 64% of the retailers are satisfied with the service provided by the PSR’s. And the rest of 36% are dissatisfied because unavailability of flavours as per the demand of the customers.

7.

AWARENESS OF THE PROMOTIONAL SCHEMES OFFER BY FRITOLAY

Table 5.2.7: Table showing awareness of the promotional schemes offer by FritoLay

RESPONSES

Percentage

Yes

82

No

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Figure 5.2.7: Pie chart showing awareness of the promotional schemes offer by FritoLay

PROMOTIONAL SCHEMES

18% yes no

82%

Interpretation: It can be seen that 82% of the retailers are aware of the promotional offers given by the company and the rest of 18% are unaware of any such schemes.

5.3 ANALYSIS FROM THE CONSUMER’S DATA

1. RESPONDENT PROFILE: During my analysis, the respondents were from the below mentioned areas :Figure 5.3.1: Pie- chart showing the areas where the respondents resides

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PROFILE

25% 40%

25% 10%

kahipirara

lalganesh

lokhra

dhirenpara

Interpretation: In order to know consumers perception regarding extruded roduct as a snack, I have selected consumers from few areas from which 40% belongs to dhirenpara, 25% belonged to lalganesh,25% from kahilipara and finally 10% from Lokhra.

2. AWARENESS OF EXTRUDED SNACKS AMONG RESPONDENTS Figure 5.3.2: Pie- chart showing the awareness among respondents

AWARENESS AMONG RESPONDENTS

6% yes no

94%

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When consumers were asked about the awareness of extruded snacks, 94% of the total population were responsive where as, only 6% were ignorant to it.

3. SOURCE, THROUGH WHICH CONSUMERS CAME TO KNOW ABOUT THE ACCESSIBILITY OF THE PRODUCT EXTRUDED SNACKS

Figure 5.3.3:Pie-chart showing the source through which consumers came to know about extruded snacks

Chart Title 70% 60% 50% 40% 30% 20% 10% 0% family members

mass media

retail outlets

friends

Interpretation: When consumers were asked about the accessibility of extruded snacks, 70% of the consumer got aware of extruded snacks through Retail outlets, following 5% through Mass media, again 12% through family members and the rest 13% through friends

4. PREFERENCE OF EXTRUDED SNACKS

Figure 5.3.4: Bar- diagram showing the preference of extruded snacks

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50 45 40 35 30

often sometimes not at

25 20 15 10

Lehar

cheetos

parle

pran

Others

Interpretation: From this above graph it can be observed that cheetos’s is mostly preferred by the consumers.

5. PREFERENCE OF VARIOUS SCHEMES IN THE EXTRUDED SNACKS PRODUCTSFigure 5.3.5 : Pie- chart showing the various schemes in extruded product

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SCHEMES REQUIREMENT

45%

55%

yes

no

Interpretation: When asked about various schemes in extruded snacks products 45% responded positively and 55% responded on the negative side.

6. RESPONDENTS WHICH LOOKS FOR VARIOUS SCHEMES ARE – Figure 5.3.6 : Pie- chart showing the various schemes

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SCHEMES OFFERED 9%

11%

5%

30% 45%

coupon

price off

extra quantity

scratch cards

lucky draw

7. THE ROLE OF ADVERTISING TOWARDS RESPONDENTS PREFERENCE OF

HAVING EXTRUDED SNACKSFigure 5.3.7: Pie- chart showing the role of advertising

CHART TITLE YES

NO

28%

72%

Interpretation: When enquired about the role of advertising, whether it influence users to consume extruded snacks, 72% were in support in compared to that 28% totally ignored.

8.PURCHASE OF ANY EXTRUDED SNACKS PRODUCT RECENTLY AFTER COMING ACROSS ANY ADVERTISEMENT-

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Figure 5.3.8: Pie- diagram showing the purchase of extruded snacks after coming across advertisements

Chart Title

41%

yes

59%

no

Interpretation: 59% of people have purchased extruded snacks after coming across any advertisement. Thus, its observed that products like extruded snacks needs more promotion to be accepted by the consumers.

9.WAY IN WHICH ADVERTISEMENT INFLUENCES THE RESPONDENTSFigure 5.3.9: Bar chart showing the ways in which advertisements influences the respondents

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Chart Title 55%

25% 15% 5% BETTER RECALL

POSITIVE IMPRESSION

INTEREST

BETTER EXPOSURE

Interpretation: Advertisements have helped in creating a positive impression among consumers.

5.4 DEMOGRAPHIC FACTORS



Age

Figure 5.3.10 : pie chart showing the age of respondents

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AGE

15%

3%

10% 72%

BELOW 20

21-30

31-40

ABOVE 40

Interpretation: It is seen that 72% of respondents were of the age below 20 years.



Sex

Figure 5.3.11: Pie diagram showing the sex of respondents

SEX RATIO

43% 57%

male

female

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Interpretation: 57% of the total population were male and the rest of 43% were female.

 Maritial Status Figure 5.3.12: pie chart showing the maritial status of the respondents

MARITAL STATUS

17%

83%

married

unmarried

Interpretation: Of the total population in Guwahati, the respondent those were investigated out of that 83% were unmarried and 17% were married.

 Educational Qualification Figure5.3.13: Pie chart showing the educational qualification of the respondents

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EDUCATIONAL QUALIFICATION

7% 25% 68%

school level

graduates

post graduates

Interpretation: 68% of the total respondents were school level, whereas, 25% were graduates and 13% were post graduates.

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HYPOTHESIS TESTING FOR THE FACTORS THAT INFLUENCE CUSTOMERS FOR THE PURCHASE OF DIFFERENT EXTRUDED SNACKS: CHI- SQUARE TEST

RELATIONSHIP TESTING BETWEEN ADVERTISEMENTS OF CHEETOS SNACKS AND GENDERS OF THE RESPONDENTS H0= There is no relationship between the genders of the respondents which influence their purchase of a brand of extruded snacks and the Advertisement of Cheetos Snacks. H1= There is a relationship between the genders of the respondents which influence their purchase of a brand of extruded snacks and the Advertisement of Cheetos Snacks.

Cheetos snacks [Advertisements] * Sex Crosstabulation Count Sex Total 1

2

Cheetos snacks [Advertisements] 3

19

35

54

4

13

11

24

5

17

30

47

6

6

19

25

55

95

150

Total

Chi-Square Tests Asymp. Sig. (2Value

df

sided)

Pearson Chi-Square

4.948a

3

.176

Likelihood Ratio

4.929

3

.177

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Linear-by-Linear Association .754 N of Valid Cases

1

.385

150

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 8.80.

In the above Chi- square test, the variables were merged and recoded into same variables. From the above result of chi square test obtained in SPSS, we can see that the Pearson Chi- square value, P=0.176, is greater than the value of the level of significance α = 0.05. It implies that the null hypothesis cannot be rejected and it can be said that advertisements of Cheetos snacks doesn’t influence any particular gender of the respondents for purchasing a brand of extruded snacks.

RELATIONSHIP TESTING BETWEEN ADVERTISEMENTS OF BIKAJI

AND

GENDERS OF THE RESPONDENTS H0= There is no relationship between the genders of the respondents which influence their purchase of a brand of extruded snacks and the Advertisement of Bikaji extruded snacks. H1= There is a relationship between the genders of the respondents which influence their purchase of a brand of extruded snacks and the Advertisement of Bikaji extruded snacks.

Bikaji's [Advertisements] * Sex Crosstabulation Count Sex

8.3 Bikaji's [Advertisements]

Total

1

2

Total

3

15

28

43

4

16

18

34

5

18

31

49

6

6

18

24

55

95

150

Square Tests Asymp. Sig. (2Value

df

sided)

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Pearson Chi-Square

3.047a

3

.384

Likelihood Ratio

3.083

3

.379

1

.444

Linear-by-Linear Association .585 N of Valid Cases

150

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 8.80.

In the above Chi- square test, the variables were merged and recoded into same variables. From the above result of chi square test obtained in SPSS, we can see that the Pearson Chi- square value, P=0.384, is greater than the value of the level of significance α = 0.05. It implies that the null hypothesis cannot be rejected and it can be said that advertisements of Bikaji extruded snacks doesn’t influence any particular gender of the respondents for purchasing a brand of extruded snacks.

RELATIONSHIP TESTING BETWEEN ADVERTISEMENTS OF PARLE EXTRUDED SNACKS AND GENDERS OF THE RESPONDENTS

H0= There is no relationship between the genders of the respondents which influence their purchase of a brand of extruded snacks and the Advertisement of Parle extruded snacks. H1= There is a relationship between the genders of the respondents which influence their purchase of a brand of extruded snacks and the Advertisement of Parle extruded snacks.

parle [Advertisements] * Sex Crosstabulation Count Sex

parle [Advertisements]

Total

1

2

Total

3

20

26

46

4

16

22

38

5

12

26

38

6

7

21

28

55

95

150

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Chi-Square Tests Asymp. Sig. (2Value

df

sided)

Pearson Chi-Square

3.468a

3

.325

Likelihood Ratio

3.546

3

.315

Linear-by-Linear Association 3.186

1

.074

N of Valid Cases

150

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 10.27.

In the above Chi- square test, the variables were merged and recoded into same variables. From the above result of chi square test obtained in SPSS, we can see that the Pearson Chi-square value, P=0.325, is greater than the value of the level of significance α = 0.05.It implies that the null hypothesis cannot be rejected and it can be said that advertisements of Parle extruded snacks doesn’t influence any particular gender of the respondents for purchasing a brand of extruded snacks.

RELATIONSHIP TESTING BETWEEN ADVERTISEMENTS OF PRAN EXTRUDED SNACKS AND GENDERS OF THE RESPONDENTS H0= There is no relationship between the genders of the respondents which influence their purchase of a brand of Exruded snacks and the Advertisement of Pran extruded snacks. H1= There is a relationship between the genders of the respondents which influence their purchase of a brand of Extruded snacks and the Advertisement of Pran extruded snacks.

Pran * Sex Crosstabulation Count Sex

pran

1

2

Total

1

6

16

22

2

8

16

24

3

13

8

21

4

7

25

32

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5

11

20

31

6

10

10

20

55

95

150

Total

Chi-Square Tests Asymp. Sig. (2- sided) Value

df

Pearson Chi-Square

11.276a

5

.146

Likelihood Ratio

11.232

5

.047

N of Valid Cases

150

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 7.33.

In the above Chi- square test, the variables were merged and recoded into same variables. From the above result of chi square test obtained in SPSS, we can see that the Pearson Chi-square value, p=0.146 is greater than the value of the level of significance α = 0.05.It implies that the null hypothesis cannot be rejected and it can be said that advertisements of Pran extruded snacks doesn’t influence any particular gender of the respondents for purchasing a brand of extruded snacks

RELATIONSHIP TESTING BETWEEN ADVERTISEMENTS OF OTHER EXTRUDED SNACKS AND GENDERS OF THE RESPONDENTS

H0= There is no relationship between the genders of the respondents which influence their purchase of a brand of extruded snacks and the Advertisement of Other Extruded snacks. H1= There is a relationship between the genders of the respondents which influence their purchase of a brand of extruded snacks and the Advertisement of other extruded snacks.

Others [Advertisements] * Sex Crosstabulation Count Sex

Others [Advertisements]

1

2

Total

3

36

55

91

4

5

18

23

5

12

13

25

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6 Total

2

9

11

55

95

150

Chi-Square Tests Asymp. Sig. (2Value

df

sided)

Pearson Chi-Square

5.536a

3

.136

Likelihood Ratio

5.858

3

.119

1

.510

Linear-by-Linear Association .435 N of Valid Cases

150

a. 1 cells (12.5%) have expected count less than 5. The minimum expected count is 4.03.

In the above Chi- square test, the variables were merged and recoded into same variables. From the above result of chi square test obtained in SPSS, we can see that the Pearson Chi- square value, p=0.136 is greater than the value of the level of significance α = 0.05. It implies that the null hypothesis cannot be rejected and it can be said that advertisements of other extruded snacks (local products) doesn’t influence any particular gender of the respondents for purchasing a brand of extruded snacks.

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ANOVA :CHEETOS EXTRUDED SNACKS BRAND IMAGE H0= There is no difference in the mean of the age groups in terms of their preference of Cheetos extruded snacks Brand image. H1= There is difference in the mean of the age groups in terms of their preference of Cheetos extruded snacks Brand image.

Where, µ<20 denotes average age of population below 20 years 21-30 denotes average age between 21- 30 yrs 31-40 denotes average age between 31-40 40> denote average age above 40.

ANOVA Cheetos [Brand Image] Sum of Squares Df

Mean Square

F

Sig.

Between Groups

26.222

3

8.741

3.780

.012

Within Groups

337.571

146

2.312

Total

363.793

149

Therefore, from the test, we can reject the null hypothesis Ho as p- value is 0.012 and we can opt for the alternate hypothesis H1. This means that the difference between the means of the variables are significant and as the subhypothesis was equal variance assumed and the null hypothesis being rejected, we see Games- Howell to find out the combinations at which the differences are significantly different. The significant differences in the average of age led to the rejection of the null hypothesis and the acceptance of the alternative hypothesis. Therefore we can accept that there is a difference in the mean of the age groups in terms of their preference in Cheetos extruded snacks brand image.

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ANOVA : BIKAJI EXREUDED SNACKS BRAND IMAGE H0= There is no difference in the mean of the age groups in terms of their preference of Bikaji extruded Brand image. H1= There is difference in the mean of the age groups in terms of their preference of Bikaji extruded Brand image. Where, µ<20 denotes average age of population below 20 years 21-30 denotes average age between 21- 30 yrs 31-40 denotes average age between 31-40 40> denote average age above 40. ANOVA Bikaji's [Brand Image]

Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

29.346

3

9.782

5.069

.002

Within Groups

281.728

146

1.930

Total

311.073

149

Therefore, from the test, we can reject the null hypothesis Ho as p- value is 0.002 and we can opt for the alternate hypothesis H1. This means that the difference between the means of the variables are significant and as the subhypothesis was equal variance assumed and the null hypothesis being rejected, we see Games- Howell to find out the combinations at which the differences are significantly different. The significant differences in the average of age led to the rejection of the null hypothesis and the acceptance of the alternative hypothesis. Therefore we can accept that there is a difference in the mean of the age groups in terms of their preference in Bikaji extruded brand image.

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ANOVA : PARLE EXTRUDED SNACKS BRAND IMAGE H0= There is no difference in the mean of the age groups in terms of their preference of Parle extruded snacks Brand image. H1= There is difference in the mean of the age groups in terms of their preference of Parle extruded snacks Brand image. Where, µ<20 denotes average age of population below 20 years 21-30 denotes average age between 21- 30 yrs 31-40 denotes average age between 30-40 40> denote average age above 40. ANOVA Parle [Brand Image] Sum of Squares

Df

Mean Square

F

Sig.

Between Groups

12.929

3

4.310

14.519

.000

Within Groups

414.165

96

.177

Total

427.093

99

Therefore, from the test, we can reject the null hypothesis Ho as p- value is 0.000 and we can opt for the alternate hypothesis H1. This means that the difference between the means of the variables are significant and as the subhypothesis was equal variance assumed and the null hypothesis being rejected, we see Games- Howell to find out the combinations at which the differences are significantly different. The significant differences in the average of age led to the rejection of the null hypothesis and the acceptance of the alternative hypothesis. Therefore we can accept that there is a difference in the mean of the age groups in terms of their preference in Parle extruded brand image.

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ANOVA : PRAN EXTRUDED SNACKS BRAND IMAGE

H0= There is no difference in the mean of the age groups in terms of their preference of Pran extruded snacks Brand image. H1= There is difference in the mean of the age groups in terms of their preference of Pran extruded snacks Brand image. Where, µ<20 denotes average age of population below 20 years 21-30 denotes average age between 21- 30 yrs 31-40 denotes average age between 31-40 40> denote average age above 40.

ANOVA Pran [ Brand image] Sum of Squares Df

Mean Square

F

Sig.

Between Groups

30.840

3

10.175

12.537

.000

Within Groups

77.925

96

.651

Total

108.860

96

Therefore, from the test, we can reject the null hypothesis Ho as p- value is 0.000 and we can opt for the alternate hypothesis H1. This means that the difference between the means of the variables are significant and as the subhypothesis was equal variance assumed and the null hypothesis being rejected, we see Games- Howell to find out the combinations at which the differences are significantly different. The significant differences in the average of age led to the rejection of the null hypothesis and the acceptance of the alternative hypothesis. Therefore we can accept that there is a difference in the mean of the age groups in terms of their preference in Pran extruded snacks brand image.

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ANOVA : OTHER EXTRUDED SNACKS BRAND IMAGE

H0= There is no difference in the mean of the age groups in terms of their preference of Other extruded snacks Brand image. H1= There is difference in the mean of the age groups in terms of their preference of Other extruded snacks Brand image.

Where, µ<20 denotes average age of population below 20 years 21-30 denotes average age between 21- 30 yrs 31-40 denotes average age between 31-40 40> denote average age above 40.

ANOVA Others [Brand Image] Sum of Squares Df

Mean Square

F

Sig.

Between Groups

12.046

3

4.015

14.660

.000

Within Groups

53.128

146

.419

Total

365.173

149

Therefore, from the test, we can reject the null hypothesis Ho as p- value is 0.000 and we can opt for the alternate hypothesis H1. This means that the difference between the means of the variables are significant and as the subhypothesis was equal variance assumed and the null hypothesis being rejected, we see Games- Howell to find out the combinations at which the differences are significantly different. The significant differences in the average of age led to the rejection of the null hypothesis and the acceptance of the alternative hypothesis. Therefore, we can accept that there is a difference in the mean of the age groups in terms of their preference in other extruded snacks brand imagE.

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CHAPTER 6: OBSEVATIONS AND FINDINGS 6.1 OBSERVATION FROM THE MARKET 6.2 FINDINGS FROM THE MARKET SURVEY

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6.1 OBSERVATION FROM THE MARKET SURVEY 1. Diplay of the FritoLay product is closely related to its sales. 2. Demand of anti- rodent rod is very high. 3. Some retailers find it difficult to opt with the changing distribution pattern. 4. Rack purity is maintained by most of the retail outlets. 5. The products are kept on the racks in decending order ie, 1st rack comprises of Rs. 30 followed by Rs 20 and in the 2nd rack the NPD products are kept followed by Rs 10 products. 6. There are exclusive shelves for the NPD like aliva, Lays baked products etc they are kept in easily accesible racks. 7. Introduction of the electronic device, HHD had lessen the human error. 8. The company makes its extreme sales in festive months. 9. The company’s main focus is on the Priortize outlets 100k, where the customers visits are very high and the presence of competitor’s product is also there. 10. TLSD helps in tracking the range selling. For eg- If a retail outlet orders for different variants of products, like if they order 2 dozen of ASCO and 4 dozen of MM then the TLSD is 2. 11. It can be seen in the prioritize outlets that Other companies like Nestle, HUL, Horlicks, ITC, P& G offers a high payout for displaying their product in monthly or quaterly basis. 12. Ready stock is more time consuming in compared to order- booking, for which it becomes difficult to cover entire beat. 13. Sometimes the company fails to provide racks and rods to retailers so they are not willing to purchase the products and the Fritolay products are kept on the racks of Hippo and ITC. Therefore, it results in poor sales as the visibility is very low. 14. Products which are damaged by rodents and expiry are not replaced. 15. Bad weather conditions and sudden strikes adversely affects the delivery of goods. 16. FritoLay emphasizes more on the service of greater number of outlets rather than the sales value. However. PSR’s gives more emphasis to the sales value. The various major findings derived after the analysis and interpretation of the data in accordance with the predetermined objectives are as followsFINDINGS FOR OBJECTIVE No.1 and 2 1. The delivery of Cheetos extruded snacks is adequate, but the supply is not according to the demand different flavors. Cheetos has a market share of 43% (approx) in the Extruded snacks category in the Guwahati city. Page | 81 Summer Internship Project 2017

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2. The various flavours of Chetoos extruded snacks which are avaible but are not present in many outlets. 3. The promotional activity of Cheetos is very less in Guwahati as of which only a few section of the society as aware of its availability. 4. Most of the retailers are not aware of all the flavours of Cheetos. 5. In terms of market presence, Cheetos is the market leader and holds the maximum share of in the market. 6. In terms of demand, Cheetos is leading brand followed closely by Bikaji’s. 7. Some of the PSR’s does gives frequent visits in certain areas, Retailers complains that they do not get the product on the right time. 8. Regular service, credit facility and low margin are found to be the major reasons for selling the competitors brands. Some of the retailers prefer these brands for their high profit margin, good discount and other reasons. 9. Lack of space in certain outlets causes improper display of products. 10. The various schemes given by the competitors varies from shops to shops , for display of their products some retailers receives payout quaterly basis, monthly basis or a percentage is given from the sell of their products. 11. The distribution model of competitors is same as that of Frito-Lay Order booking. The salesman visits the retail outlet every week and collects order and supplies the same on the very next day. Sometimes in some areas where the demand for a product is low, so the retailers denies to keep the competitors product, in those cases the salesman push the products with their core products

FINDINGS FOR OBJECTIVE No. 3

4. Majority of the respondents said that Cheetos extruded snacks are mostly preferred because it is perceived to be tastier in comparison to other brand of extruded snacks. 5. Majority of the respondents purchases Cheetos more compared to Bikaji, Pran, Parle etc. The main reason is the taste factor. 6. As found after performing a series of chi square tests the following findings have been made:  It was found that the Advertisements doesn’t have any significant influence over a particular gender of the respondents. 4. As found after performing a series of Anova tests the following findings have been made:  It was found that the preference for different brands of extruded snacks differs with the various age groups of the respondents. Page | 82 Summer Internship Project 2017

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CHAPTER 7: CONCLUSION 7.1 CONCLUSION 7.2 RECCOMMENDATION

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7.1 CONCLUSION: In this present era of globalization, there is a rapid growth of consumersim which has created a high demand for the good quality products and services. At this pointt of time, people would like to enjoy good quality of foods by paying more rather than having an inferior product for lesser price. In order to substain in the long run the company has to satisfy the retailers as well as the end users need in order to derive an overall development. By giving more emphasis on the promotion activty and attractive schemes the market share of Cheetos Extruded snacks can be increased at a high rate. More emphasis should be given on regular service, supply of all products along with all the flavours and special care for new outlets. Thus, by implementing all these positive aspects the company should definitely try to capitalize on the extruded snack market.

7.2 RECOMMENDATIONS:

 Some of the recommendations are as follows :  All the different flavors should be made available with the PSR’s in order to meet the market demands.  In order to keep retailers active schemes and gifts should be given timely.  More promotional activities should be undertaken by the company in order to create awareness among consumers.  It must target the scheduled customers between the age 5-16.  Today’s current scenario is totally based on internet, so the company must adopt social media strategy like Facebook, Twitter, Google+, You- tube etc. to reach the wider mass.  The company must undertake Customer service goals like Increasing Online Customer Service and Interaction.  Provide answers to problems online.  Become a reliable and gain consumers trust.  The Future of the Company Depends On its ability to change and evolve to fit the times. Technology has changed the way companies operate and can be used in many ways to enhance the quality of the extruded snacks.  Consumers have changed and companies need to be able to adapt to new practices and approaches such as transparency, sustainability and authenticity. Long Term  Renewed commitment to mission & of responsibility and sustainability. Page | 84 Summer Internship Project 2017

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 Regaining public trust and consumer support through communication and openness.

Short Term  Start to use new approaches to marketing and social media.  Listening & connecting with consumers.

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BIBLIOGRAPHY Parle product facts Retrieved September11, 2011 from parle-products-looks-to-double-turnover-insnacks-by-2018-114112700093_1.html Bikaji products facts Retrieved September11, 2011 from http://www.bikaji.in/products_snacksextruded.php PepsiCo Lehar product facts Retrieved September11, 2011 from http://www.pepsicoindia.co.in/brands/lehar.html Fritoys Cheetos product facts Retrieved September11, 2011 from http://www.fritolay.com/snacks/product-page/cheetos About the company facts product facts Retrived September11, 2011 from http://www.pepsico.com/ About the People and Happenings at FritoLay India. (n.d.). Retrieved September 11, 2017, from http://fritolayindia.blogspot.in/ PepsiCo India - Lay's. (n.d.). Retrieved September 11, 2017, from http://pepsicoindia.co.in/brands/lays.html PepsiCo Quick Facts.Retrieved September 11, 2017, from_http://www.pepsico.com/Download/PepsiCo_Q uick_Facts.pdf Books : Kotler, P, Armstrong, G, Haque, E.u., & agnihotri, P.Y. (13th Edition(2009)). Principles of Marketing. New Delhi: Pearson Prentice hall. Malhotra, N.K., & Dash, S.( 5th Edition(2007)). Marketing Research: An Applied orientation, Pearson.

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ANNEXURE

Questionnaire Dear respondent(s),

Please co-operate me through your honest response in filling up the questionnaire printed below. This schedule will only help in sourcing all necessary data for conducting my project work entitled to be” A Comparative Study of Extrudud Snacks in Guwahati Market with special reference to” , as a criterion for MBA (Specialization in marketing) student under Tezpur Central University. I assure you that, your response sheet will be merely treated for academic purpose and not somehow any part of it be used for mass publications. Thanking you,

Yours Truly, Deep Dey, Dept. of Business Admn, Tezpur University

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Department of Business Administration SCHEDULE FOR RESEARCH STUDY ON THE TOPIC: “A COMPARITIVE STUDY OF EXTRUDED SNACKS IN GUWAHATI MARKET WITH SPECIAL REFERENCE TO FRITOLAY’S ” INVESTIGATOR: DEEP DEY MBA 3rd Semester Session- 2016-18 Department of Business Administration, Tezpur University. 1. Personal details Outlet Name

: …………………………………………………..

Location

: ………………………………………………….. 2. Do you keep Cheetos extruded snacks in your shop? Yes

No

3. Through which source, you came to know about these products? Mass Media

Marketing Executives

Wholesalers

Retail outlets

Others

4. Is your outlet being served by fritolays ? Yes

no

5. Do you have racks provided by fritolays? Yes

no

6. Which type of rack do you have in your outlet? SSC A

SSC B

MOD A

MODB

ANTI RODENT

7. Do you keep products in your rack other than these products of fritolays? (RACK PURITY) Yes

no

8. What Is the Total Sales Of These Products In Your Outlet? LESS THAN 500

500- 1000

1000-1500

9. Do you maintain regularity in ordering such products? Yes

no

10. Which all other extruded snacks do you keep in your outlet? cheetos

bikaji

Haldiram’s

Pran

Parle

11. Which of these snacks you prefer the most? Page | 88 Summer Internship Project 2017

Department of Business Administration (Rank from 1 to 5, 5-Most Prefered 1-Least Prefered)

1

Cheetos

Bikaji Parle

Pran Others

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

1

2

3

4

5

12. In which brand do you get the maximum profit margin? Lehar

Bikaji

parle

pran

others

13. Mention the frequency of purchase of snacks of different companies?

Sl .No

Once a week Once a month Twice a month Thrice a months

1

Cheetos

2

Bikaji

3

Parle

4

Pran

5

Others

14. Rank the factors that influence you the most for the purchase of the following brand of these snacks. (Rank from 1 to 5, 5-Strongly Agree, 4-Agree, 3-Neither Agree nor Disagree, 2-Disagree, 1-Strongly Disagree)

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Bikaji

Parle

Pran

Others

Factors Damage Claim Replacement Good Packaging Quality Profit Margin Incentives Executive Visits Display Assistance Asset Facilities Brand Image

Other reasons, mention if any …………………………………………………………………….... 15. Rank the brands in accordance to the number of stock you keep in your outlet. 1.

2.

3.

4.

5.

6.

16. Do you look for various schemes in such products? Yes

No

If yes which schemes? Coupons

Price off

Margin

Credit facility

Cash Discounts

Asset Facilities

Please also rank them in order of preference… 1.

2.

3.

4.

5.

6.

17. Do you keep all the variants of the brand Lehar? Yes

No Page | 90

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Department of Business Administration 18. Tick on the range you buy for each brand at the time of purchase? Range

Upto 500

500-1000

1000-1500

1500 and above

Brand cheetos Bikaji Parle Pran Others

19. In what way advertisement has influenced you? Positive Impression

Brand Image

Better exposure

20. State your Suggestions if any ………………………………………………………………………………………………… ………………………………………………………………………………………………… ………………………………………………………………………………………………… ……………………………………………………………….

……………………………………………………………..Thank you……………………………………………….............

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