To_analyze_retailers_experience_of_sell.docx

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SUMMER INTERNSHIP PROJECT ON “TO ANALYZE RETAILERS EXPERIENCE OF SELLING SCHMITTEN AS A BRAND OF CHOCOLATE”

Submitted to

S.R. LUTHRA INSTITUTE OF MANAGEMENT IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION In

Gujarat Technological University UNDER THE GUIDANCE OF

Faculty Guide:

Company Guide:

Mr. Harshesh Patel

Mr. Alpesh Balar

Assistant Professor

Executive marketing (Rajhans Nutriments pvt.ltd)

Submitted by Ms. Ami Patel [Batch No. 2014-16, Enrollment No.148050592044]

MBA SEMESTER III

S.R. LUTHRA INSTITUTE OF MANAGEMENT – 805 MBA PROGRAMME Affiliated to Gujarat Technological University Ahmedabad August, 2015

Student’s Declaration

I, Ms. Ami Patel, hereby declare that the report for Summer Internship Project entitled “To Analyze Retailers Experience of Selling Schmitten as a Brand of Chocolate” is a result of my own work and my indebtedness to other work publications, references, if any, have been duly acknowledged.

Place: Surat

Date: ____________

___________________ (Ami Patel)

Institute’s Certificate Certified that this Summer Internship Project Report Titled “To analyze retailers’ experience of selling Schmitten as a brand of chocolate” is the bonafide work of Ms. Ami Patel (Enrollment No.148050592044), who has carried out the research under my supervision. I also certify further, that to the best of my knowledge the work reported here in does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Place: Surat Date: ________________

___________________ (Harshesh Patel) Asst. Professor

___________________ (J. M. Kapadia) Director

PREFACE I received my training at Rajhans (Desai and Jain) Group, Surat as a requirement of MBA curriculum. This training has provided me a clear insight of the application of theoretical knowledge into practical scenario. To target the respondent, it is imperative to understand their mind set and preference toward the selling Schmitten. The Research topic is to analyze retailers’ experience of selling Schmitten as a brand of chocolate. From 8 June 2015 to 18 July 2015 this Research has been conducted by me. Objectives of the study are: to analyze retailer experience of selling Schmitten as a brand of chocolate, to do comparative study of Schmitten with other brands of chocolates, to know retailer’s preference of selling brands of chocolates, to know reasons why retailers are not selling Schmitten as a brand of chocolate. In this research first the analysis of the confectionary industry at global, National, and state level Scenario, then PESTLE analysis done of confectionary industry. Secondly, Micro analysis related to company and organization structure has been done. Literature review has been done regarding Chocolates, bands, retailer, etc… Conclusion of the study revealed that most of the retailers selling experience are neutral for selling schmitten brand; most of the respondents under study are selling Cadbury in their store, while some of the respondents are not selling schmitten because of some issues attached with the product.

ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and organizations. I would like to extend my sincere thanks to all of them. I am highly indebted to Mr. Alpesh Balar for his guidance and constant supervision as well as for providing necessary information regarding the project & also for his support in completing the project. I would like to express my gratitude towards Mr. Harshesh Patel, mentor at institute & member of Rajhans group for their kind co-operation and encouragement which help me in completion of this project. I would like to express my special gratitude and thanks to industry persons for giving me such attention and time. My thanks and appreciations also go to my friends in developing the project and people who have willingly helped me out with their abilities.

EXECUTIVE SUMMARY This research is focused on “To Analyze Retailers Experience of Selling Schmitten As a Brand of Chocolate.” It also helps to know what are the factors which affect the retailers who are selling Schmitten and how is their experience for selling schmitten brand to their customers. Introduction covers the theoretical aspects on schmitten brand and confectionery goods. It also covers various brands of chocolate, top selling brands, sales forecast and also brief about history of confectionery industry. The project includes the overview of confectionary industry is delicacies or sweetmeats that have sugar as a principal ingredient, combined with coloring matter and flavoring and often with fruit or nuts. The global confectionery industry revenue is estimated to reach $176 billion by 2018 with a CAGR of 3.0% over the next five years (2013-2018). Confectionery in India is broadly classified as chocolate based confectionery, sugar based confectionery and gum based confectionery. Confectionery sector in India is well consolidated with top players holding a major share of the market; local subsidiaries of global confectioners are among the leading players in India. Large players have a significant presence in chocolate confectionery market while smaller players primarily operate at a regional level and have sizeable base in sugarbased confectionery market It includes the overview of the company. The Rajhans group of companies was started in 1990. This chapter also the market Poisson like Over the past year they have captured 2% of the luxury chocolate segment The sales have grown by more than 50% over the past quarter. It includes literature reviews which are referred for the research study. Literature reviews are the previous study conducted by the other researcher. It further describes the research methodology that researcher had used for the purpose of this research. This includes problem statement, research objectives and research design. The research design has used is descriptive research design and non-probabilistic convenience sampling method has used for the research.

Data collection method used was personal survey method in which questionnaire is used as data collection tool. The sample size was 100 respondents i.e. retailers of surat. Further project includes finding, conclusion and suggestion on the basis of data analysis. For data analysis frequency distribution and chi-square independence test has used for knowing the relationship between various variables. Findings of the study revealed that most of the retailers are aware of schmitten but some of them are not selling schmitten because of it packaging, price, margin structure, distribution network etc. Conclusion of the study revealed that most of the retailers selling experience are neutral for selling schmitten brand, most of the respondents under study are selling Cadbury in their store, while some of the respondents are not selling schmitten because of some issues attached with the product.

TABLE OF CONTENTS Sr.

Particulars

Page

No.

No.

1.

Introduction

1

2.

Confectionary Industry Profile

5 6 7 9 10 11 13 13

3.

a. Global b. National c. State d. Current trends e. PESTEL f. Major Players g. Major Offerings Rajhans (Desai & Jain Group) Profile

16 19 19 23 24

4.

a. Company Profile b. Organogram c. Divisions/ Departments d. SWOT e. Market Position Review of Literature

5.

Research Methodology

6.

a. Problem Statement b. Research Objective c. Research Design i. Type of Design d. Sampling Plan e. Sources of Data f. Data Collection Method g. Data Collection Tool h. Hypothesis Testing i. Tools for Analysis j. Limitations of the Study Data Analysis & Interpretations

7

Findings

51

8

Conclusion

53

9

Recommendations

54



Bibliography



Annexure

15

26 30 30 30 30 30 31 31 31 31 32 32 33

LIST OF TABLE Sr. No.

Particulars

Table No.

Page No.

1

Major Players

2.1

13

2

Milestones

3.1

23

3

Tenure of Store

6.1

33

4

Brands of chocolates

6.2

34

5

Have you ever sold Schmitten chocolate

6.3

35

6

Experience of selling Schmitten chocolate

6.4

36

7

Comparison with the available brands of chocolate

6.5

37

8

Preference to sell among customer

6.6

38

9

Over all experience of selling Schmitten

6.7

39

10

associated with the Schmitten brand

6.8

40

11

sell other product of Schmitten

6.9

41

12

recommend others to sell Schmitten

6.10

42

13

(A) Scope of improvement

43 6.11 44

(B) Area of improvement 14

Reasons for not sold Schmitten yet

6.12

45

15

If issue solved, will you sell Schmitten?

6.13

46

16

Executive from Schmitten

6.14

47

17

Observed and Expected Frequency

6.15

48

18

Observed N and Expected N Frequency

6.16

48

19

Chi- Square Test

6.17

48

20

Observed N and Expected N Frequency

6.18

49

21

Area

6.19

49

22

Chi- Square Test

6.20

49

23

Observed and Expected Frequency

6.21

50

24

Store

6.22

50

25

Chi- Square Test

6.23

50

LIST OF FIGURE Sr. No.

Particulars

Figure no.

Page no.

1

Top chocolate confectioneries in India

1.1

2

2

Top chocolate brands

1.2

3

3

Top selling chocolate type

1.3

3

4

Most popular categories

1.4

4

5

Sales forecast of most popular categories

1.5

4

6

Schmitten chocolate photos

3.1

20

7

Brand Ambassador of Schmitten Chocolate

3.2

21

8

Variety of Schmitten chocolate

3.3

22

9

Varieties of Hoppits

3.4

22

10

Schmitten chocolate today

3.5

24

11

Tenure of Store

6.1

33

12

Brands of chocolates

6.2

34

13

Have you ever sold Schmitten chocolate

6.3

35

14

Experience of selling Schmitten chocolate

6.4

36

15

Comparison with the available brands of chocolate

6.5

37

16

Preference to sell among customer

6.6

38

17

Over all experience of selling Schmitten

6.7

39

18

associated with the Schmitten brand

6.8

40

19

sell other product of Schmitten

6.9

41

20

recommend others to sell Schmitten

6.10

42

21

(A) Scope of improvement

43 6.11

(B) Area of improvement

44

22

Reasons for not sold Schmitten yet

6.12

45

23

If issue solved, will you sell Schmitten?

6.13

46

24

Executive from Schmitten

6.14

47

CHAPTER 1 INTRODUCTION

INTRODUCTION A chocolate fantasy, like never before, Schmitten has been crafted with immense care. It’s not just about the world-class Swiss technology or the consistent taste. It’s not even about the unmatched quality that every tablet of Schmitten comes with. It’s all about the personal touch that each bite, each tablet of your favorite Schmitten offers. An experienced & inventive team works on making the chocolate a delight for your senses. Not one stone is left unturned when it comes to the machinery used, maintaining the process parameters, the raw materials and finally, the classy packaging. All this, to ensure that each Schmitten makes you want to immerse yourself into a fantasy world of your own.

Higher disposable incomes and a taste for richer chocolates are ensuring a steady growth of the premium chocolate market in India. At 10 per cent of the overall Rs 5,000-crore chocolate market, the premium segment is small. Yet, it is growing at a steady 30-40 per cent per annum, according to industry estimates. Consumption is likely to grow by 25 per cent annually and cross Rs 7,500 crore by 2017. Premium refers to those products whose average price is Rs 100 and above. Quite a few chocolates fall in this segment, including brands such as Lindt, Ferrero, Godiva, Mars, etc. Mostly imported and distributed in the country, some of them such as Ferrero are going a step further, by setting up local manufacturing facilities. Ferrero recently announced it was setting up its second manufacturing plant in the country through its wholly-owned subsidiary, Imsofer Manufacturing. The unit would be located in Maharashtra, near its first one, which is near Pune. Moreover during festivals which are an occasion when sales of premium chocolates are seeing a spurt, mainly because of their ability to be fine gifting options. Also, premium chocolate makers are keen to initiate more consumers into the habit of having their products.

In 2014, India’s chocolates sales are estimated to have crossed the Rs10,000 crore ($1.6 billion) mark, according to a report by market analyst Euromonitor, growing a solid 24% over the preceding year. And the leader of India’s chocolate pack, by far, was Mondelez India (as Cadbury India is now called) Figure No: 1.1 Top chocolate confectioneries in India

with a 55.5% share of the market. Nestle India, its nearest rival, recorded the fastest decline in marketshare. From 19% in 2013, its share fell to 17% in 2014 on the back of slow sales of its key brands, such as Munch and Bar One. Favorites brands: Almost half of Mondelez India’s brands—including Dairy Milk, 5 Star, Gems, Perk and Toblerone—were among the 15 highest selling chocolates in 2014. Much of that was because these brands are being sold in smaller units, priced at just Rs5 ($0.08), which helps them reach deeper into rural areas and TierIII cities, where affordability is key. At the top of the economic pyramid, premium chocolates—such as Lindt and Mars—available in urban retail stores and supermarkets also drove growth in 2014. But the demand for premium chocolates is not dominated by children, instead it’s a particularly adult craving. And chocolate companies are taking this growing market seriously. Both Mondelez and Nestle sell Toblerone and Alpino, respectively, in smaller

Figure No: 1.2 top chocolate brands

packs to encourage new customers to try their chocolates. Dark, White or Milk Despite all the newfound love for expensive foreign brands, the plain milk chocolate tablets remain the undisputed king in India with a value share of 60%. Meanwhile, there’s a serious fight underway between white and dark chocolates, which the latter seems to be winning currently. And right on cue, both Mondelez and Nestle launched new dark chocolates in the last two years.

Figure No: 1.3 Top selling Chocolate types

In India’s booming chocolate market aren’t black, white or milk. Instead, chocolates with toys (such as Kinder Joy) have caught the attention of young Indian consumers. From sales of only around Rs66 crore in 2009, the number has grown 15 times to Rs1, 007.5 crore in 2014. And these chocolates now Figure No: 1.4 Most Popular categories

comprise the third biggest segment in value terms. The overall market, however, is dominated by chocolate tablets and count lines, which are boxes of bars packed and supplied to retailers to be sold individually. Delicious forecast Out of the three most popular categories in 2014, count lines are expected to be the fastest growing segment in the next few years—with a 87% growth in value by 2019. Boxed assortments and chocolates with toys will follow, with a Figure No: 1.5Sales forecast of most popular categories

growth by over 68% between 2014 and 2019. Still, with Rs6,905.98 crore in sales, tablets with continue to dominate India’s chocolate market in terms of value. Confectionery, delicacies or sweetmeats that have sugar as a principal ingredient, combined with coloring matter and flavoring and often with fruit or nuts. In the United States it is usually called candy, in Great Britain, sweets or

boiled sweets. Non-chocolate candy is roughly divided into two classes, hard and soft; the distinction is based on the fact that sugar when boiled passes through definite stages during the process of crystallization. Fondant, or sugar cooked to the soft stage, is the basis of most fancy candies, such as chocolate creams. Sweetmeats, long known in the Middle East and Asia and to the ancient Egyptians, were at first preserved or candied fruits, probably made with honey. One of the earliest functions of candy was to disguise unpleasant medicine, and prior to the 14th cent. Confections were sold chiefly by physicians. Medieval physicians often used for this purpose sugarplate, a sweetmeat made of gum dragon, white sugar, and rosewater, beaten into a paste. One of the earliest confections still surviving is marzipan, known throughout Europe; it is made of almonds or other nuts, pounded to a paste and blended with sugar and white of egg. In the Middle Ages it was sometimes molded into fancy shapes and stamped with epigrams.

Sugarplums, made of boiled sugar, were known in England in the 17th cent., but it was not until the 19th cent. that candymaking became extensive. The display of British boiled sweets at the national exhibition of 1851 stimulated manufacture in other countries, especially in France. In the United States in the middle of the 19th century about 380 small factories were making lozenges, jujube paste, and stick candy, but most fine candy was imported. With the development of modern machinery and the increasing abundance of sugar, confectionery making became an important industry. In 2001, estimated retail sales of chocolate, other candy, and gum in the United States had reached $24 billion, and more 1,400 new items of candy were introduced.

CHAPTER 2 CONFECTIONARY INDUSTRY PROFILE

CONFECTIONARY INDUSTRY AT GLOBAL LEVEL The global confectionery industry revenue is estimated to reach $176 billion by 2018 with a CAGR of 3.0% over the next five years (2013-2018). Rising disposable income, increasing awareness of health and wellness, higher population, and consumer spending are the major industry drivers.

Lucintel, a leading global management consulting and market research firm, has analyzed the global confectionery industry and presents its findings in “Global Confectionery Industry 2013-2018: Trend, Profit, and Forecast Analysis.” The industry consists of sales of chocolate confectionery, sugar confectionery, gum, cereal bars, and other confectionery. Europe has the highest regional share among all the regions. Asia Pacific (APAC) emerged as the most growth potential region over 2007-2012, driven by growing population and GDP growth in developing nations. A combination of factors such as rising population and consumer spending affects market dynamics significantly.

As per the study, introduction of confectionery categories and new product variants of different tastes are ensuring higher acceptability of these products. Increasing urbanization, hectic lifestyles, and more women in the workforce globally are increasing the demand for confectionery food. The biggest challenges for the industry include health issues, as well as inflation, employment rate, increasing government regulation, and changing consumer preferences, among others. The chocolate segment is forecast to witness the highest growth during 2013-2018. Special occasions and celebrations are expected to increase confectionery sales.

This study provides an overview of the global confectionery industry, tracking three market segments of that industry in four geographic regions. Thus, a total of 12 segments of the global confectionery industry are tracked. The report studies the manufacturers of chocolate confectionery, sugar confectionery, and gum, cereal bars and other confectionery. It provides a

five-year annual trend and forecast analysis that highlights market size, profit, and cost structure as well as opportunities for the regions of North America, Europe, APAC, and Rest of the World. This comprehensive guide from Lucintel provides readers with valuable information and the tools needed to successfully drive critical business decisions with a thorough understanding of the market's potential. This report will save Lucintel clients hundreds of hours in personal research time on a global market and it offers significant benefits in expanding business opportunities throughout the global Confectionery industry analysis. In a fast-paced ever-changing world, business leaders need every advantage available to them in a timely manner to drive change in the market and to stay ahead of their competition. This report provides business leaders with a keen advantage in this regard by making them aware of emerging trends and demand requirements on an annual basis.

CONFECTIONARY INDUSTRY AT NATIONAL LEVEL Indian confectionery market mirrors its global counterpart with a wellentrenched presence of multinational companies, wide portfolio of brands, frequent product launches, intense marketing and advertisement campaigns. Consumption of confectionery products is not restricted to children anymore. Adults have opened up to consumption of confectionery in a big way. Several companies are launching confectionery products targeting adults.

Confectionery in India is broadly classified as chocolate based confectionery, sugar based confectionery and gum based confectionery. The categories are further classified as follows:

Confectionery sector in India is well consolidated with top players holding a major share of the market; local subsidiaries of global confectioners are among the leading players in India. Large players have a significant presence

in chocolate confectionery market while smaller players primarily operate at a regional level and have sizeable base in sugar-based confectionery market

The Indian confectionery market was valued at around INR 95 billion in 201213, growing at an annual rate of 10-12% since 2009-10. Of the total market, sugar confectionery holds a market share of around 46% and the rest by chocolate and gum confectionery segments. Owing to lower unit price than chocolate confectioneries, sugar confectionery segment has registered higher volume sales over the recent years Traditionally, small domestic players catering largely to a regional market accounted for a major share of the sugar confectionery market. However, in the recent years, multinational players have entered this market and have introduced quality products. Chocolate consumption is mainly centered around semi-urban and urban areas due to foreign exposure, rising disposable income and consumers’ impulse buying. Players have identified age-specific niche market segments within the chocolate confectionery market and are undertaking intense advertising campaign to ensure effective brand communication and positioning.

The confectionary market in India has a well entrenched presence of multinational players such as Mondelez (formerly Cadbury India), Nestle, Perfetti Van Melle, Mars India and Lotte as well as large domestic players such as Amul, Parle, ITC, Ravalgon and Candico. Multinational companies such as Ferrerro, Hersheys and Lindt have a strong presence in the premium chocolate market. In the chocolate confectionery segment, Cadbury holds a market share of around 65-70%, followed by Nestle at around 20%

CONFECTIONARY INDUSTRY IN GUJARAT Surat: Move over the sugary gharis and ghevars! Surat will start dishing out Swiss chocolates too. City-based Rajhans (Desai Jain) Group is setting up a Rs 500 crore chocolate factory in Kim on Mumbai-Ahmadabad highway. The Rs 2,000 crore real estate group has diversified into confectionery business by tying up with a leading chocolate maker from Switzerland to manufacture nearly 25 tones of chocolate bars and moulds. To be sold under the brand name Schmitten and Hoppits, the chocolates will be available in the market by January. Schmitten will be in moulds and Hoppits which will be sold as bars. The group is setting up the factory sprawling on 1.5 lakh sq ft land. The machinery and operating technology is imported from the UK, Denmark, Germany and Switzerland. The factory is the first of its kind in Gujarat and touted to be the third biggest in the country after Cadbury’s and Nestlé’s . "The Swiss chocolate maker with whom we have tied up is number one in Switzerland," said Jayesh Desai, chairman of the group. Desai said the chocolates will be premium brands. The Indian chocolate market is valued at around Rs 4,500 crore is likely to touch Rs 7,500 crore by 2015, according to Assocham. Cadbury commands the highest 70% share. Rajhans Group has also hired two top executives from Cadbury. Shubhra Kallani, marketing head of Rajhans Nutriments, said, "We will launch our products in eight states including Gujarat, Maharashtra, Tamil Nadu, Punjab, Rajasthan , Karnataka, Delhi and West Bengal." "Compared to other chocolates selling in the market, these will be costlier as it will be apremium product," she added. The plant in itself will be a tourist spot for those wanting to see how chocolates are made.

CURRENT TRENDS IN CONFECTIONARY INDUSTRY There are a number of trends within the chocolate industry that are driving growth; and product innovation in 2010 brought a 16% increase in new product releases over 2009. Increasing disposable incomes as well as changing public sentiments regarding health and our global community are the driving forces behind this growth in innovation. Premium and specialty items have shown strong growth over the long-term. During the recession, there had been a shift away from premium items, but as the economy has continued to recover, sales of premium items have taken the lead again. High-end varieties can be baked on the premises, come from a renowned region or have a hidden secret recipe. Seasonal and boxed assorted chocolates have been experiencing the fastest growth, and sales are expected to expand 13% between 2010 and 2015. Holidays, birthdays, retirement parties and more, chocolate is a versatile gift for many occasions. Over the last several decades there has been increased understanding of what constitutes a healthy diet, and there has been a dramatic increase in sales of sugar free, reduced fat and reduced calorie offerings. Dark chocolate is known to lower both blood pressure and cholesterol, and has nearly 8 times the number of antioxidants as found in strawberries. A recent survey found that 35% of respondents believe dark chocolate to be healthier, and it shows: sales grew 9% in 2009 versus 3.6% for the chocolate industry as a whole. Fair-trade certified chocolate is another fast growing segment of the market, where consumers pay a premium to ensure goods are produced in an ethical manner. As our global community grows smaller with the communication revolution, it becomes glaringly obvious that goods produced in developing countries are often subject to horrible labor conditions or controlled by dominant industry participants.

Fair Trade is a social movement aimed to promote sustainability in developing countries, and generally requires a higher price but conforms to higher social and environmental standards. PESTEL ANALYSIS OF CONFECTIONARY INDUSTRY The PESTEL model of analysis will be used to observe the external factors and their impacts on the global confectionary industry. PESTEL represents a total of six factors, namely Political, Economical, Social, Technological, Ecological and Legal. Political Factors: The policies of restrictions imposed on trade as well as protectionist policies for sugar producers created by developed countries caused an increase of sugar prices resulting from the decrease in supply. This has been seen as a threat towards confectionary companies, due to their dependence on sugar for their products. Economic Factors: The recent global economic crisis has affected the cost of operations for companies as well as consumption by customers. Consumers tend to spend very conservatively and purchase only times of necessity during recessionary periods. This can have a negative effect on sales of luxurious or premium products in the market, in which the confectionary industry belongs. Adding to this burden, the increased price of cocoa, which is typically a main ingredient of some confectionary products, has had a significant impact on the confectionary industry. Social Factors: The overall population of Europe is aging compared to other markets. This is important for the confectionary industry, because the market relies on purchases from younger consumers. Additionally, health consciousness plays a role in the sales of the confectionary market's growth. Technological Factors: The technological factors that have affected the confectionary market can be seen in the development of artificial sweeteners including xylitol, isomalt, and stevia. The developments of these ingredients resulted in producers of confectionary products to promote non-sugar products to support the growing segment of consumers who are health conscious and provide healthier products.

Ecological Factors: Environmentally friendliness has become a growing concern for many consumers recently. This trend represents nearly 30 percent of the market of consumers. This has resulted in the confectionary market's development of new packaging and materials which are environmentally friendly. Legal Factors: Obesity is becoming a growing concern for most people in developed countries. Laws have been created which deal with these potential health problems, in particular obesity in children is addressed through these laws. The development of these laws has increased restrictions to promotional efforts towards children of companies such as confectionary producers.

MAJOR PLAYERS IN CONFECTIONARY INDUSTRY Table No: 2.1 Major Players Product/Brand

Competitors

Mondelez India

Silk, Bourneville, Celebrations, Toblerone, Glow

Nestle India

Kit Kat Senses, Kit Kat Dark Senses, Alpino

Amul

Dark Chocolate, Tropical Orange Chocolate

Mars International

Snickers, Galaxy, Mars, Milky Way, Skittles, M&M's, Twix

Ferrero India

Ferrero Rocher, Raffaello, Mon Cheri

Lindt

Creation Hazelnut de Luxe Milk, Creation Mousse au Chocolat Dark, Lindor Bar Milk, Lindt Swiss Luxury Selection, Lindt Excellence

Hershey's

Milk Chocolate & Almonds Giant Bar, Kisses Milk Cho and Almonds,

Frey

Pecan & Caramel Chocolate, Creamy Milk Chocolate,

Swiss Classic 72% Dark Chocolate Bar Chocoholic

Nutty and Fiery Combo of Chocolate Bars, Milk

Belgium

Chocolate, Dark Chocolate, Caramel

Chocolates

MAJOR OFFERINGS OF CONFECTIONARY INDUSTRY Confectionery is the art of making confections, which are food items that are rich in sugar and carbohydrates. Exact definitions are difficult. In general, though, confectionery is divided into two broad and somewhat overlapping categories, bakers' confections and sugar confections. Bakers' confectionery, also called flour confections, includes principally sweet pastries, cakes, and similar baked goods. In the Middle East and Asia, flourbased confections are more dominant. Sugar confectionery includes sweets, candied nuts, chocolates, chewing gum, sweetmeats, pastillage, and other confections that are made primarily of sugar. In some cases, chocolate confections (confections made of chocolate) are treated as a separate category, as are sugar-free versions of sugar confections. The words candy (US and Canada), sweets (UK and Ireland), and lollies (Australia and New Zealand) are common words for the most common varieties of sugar confectionery. The confectionery industry also includes specialized training schools and extensive historical records. Traditional confectionery goes back to ancient times, and continued to be eaten through the Middle Ages into the modern era.

CHAPTER 3 RAJHANS (DESAI & JAIN) GROUP PROFILE

RAJHANS (DESAI - JAIN) GROUP

GROUP PROFILE The Rajhans (Desai-Jain) Group stands as an example of a successful journey that has changed the lives of many people. Spearheaded, managed and run by the first generation of young and dynamic entrepreneurs, the success story of the group started in the year 1990 with its very first project in the Edible Oil Refinery. This success gave the momentum and confidence to venture into the field of textiles. RAJHANS SILK MILLS PVT. LTD. was setup at Sachin in the year 1997. In the year 2000, the dynamism and foresight of the management gave a new direction to the entertainment industry of Gujarat, setting up an ultra-modern, luxurious and versatile Cinema House, RAJHANS PRIME CINEMA, at Surat. With time and success on the group's side, the company soon ventured into Real Estate - the fastest growing industry in India. In the short span of 10 years, the group has undertaken various projects ranging from Commercial Complexes, Shopping Malls, Residential High-Rise Apartments, Bungalows and Row Houses. Today, Rajhans Real estate's construction sites are spread across Gujarat and run into millions of square feet, making it one of the most trusted and valuable brand in the state. The group also envisaged enormous scope and siege opportunity in Hospitality Industry with investments in Boutique Hotels at different locations across the country. Projects have already commenced at Shirdi, Mahabaleshwar, Mt. Abu, Udaipur and Vaishnodevi.

In recent years, the group has planned to penetrate into the one of the most fascinating Confectionery Industry, manufacturing quality chocolate of international standards which is presently dominated by the multinational conglomerates.

MANAGEMENT A group so well poised has to be driven by stalwarts who live their passion every moment. Rajhans (Desai-Jain) Group is spearheaded by dynamic leaders who imbibe their values in the workforce and thereby ensuring growth in various verticals of the business. Adding more to it are technical expertise, excellent domain knowledge and extensive cross-functional experience, which turn crucial in smooth functioning of the group.

Mr.

JAYESH

B.

DESAI

-

GROUP

CHAIRMAN Mr. Jayesh Desai is a very young, dynamic, energetic and passionate personality, has been leading the Group since the inception. He is first-generation entrepreneur, an exemplary leader and an instrumental force behind the success of the Rajhans Group. A versatile man with strong business acumen, Mr. Desai heads planning and strategic business development and plays an active role in developing the business strategy for the group. He is really instrumental in Group’s foray into every new business venture. He is a man with vision and mission having in-built quality of seizing every business opportunity at optimum level. He also spearheads the social welfare activities for the group. His philosophy of “customer happiness through delightful products services” is now very much the driving force for the group.

and

Mr. SHIVLAL G. JAIN - GROUP M.D. Mr. Shivlal Jain, a dynamic and committed leader with vast experience expertise in the field of Finance, Accounts, Costing and Taxation. He is instrumental in successfully running and managing all the business verticals of the Group. A person admired by everyone in the Group for his commitment, dedication and flexible approach towards work, Mr. Shivlal Jain is looked upon as a mentor who leads by example. A key person in the success story of the Group, his wisdom and experience has become invaluable assets for the Group.

VISION & MISSION Vision - Spreading Happiness To enrich and enhance people’s lives with happiness, by bringing in products and services those delight them and add value to their lives. Mission - Creating Experiences 

Develop world-class products and services that adhere to international quality standards.



Create experiences that delight customers by delivering invaluable services.



Empower stakeholders to grow in a manner that is mutually beneficial.

VALUES Often it's the values inside that create a personality, celebrity and an identity. In this era of globalization, values matter more than volumes in creating a corporate conglomerate. The Rajhans (Desai-Jain) Group too is result of its invaluable values namely integrity, excellence, team work and customer delight. The creative rendition of this is depicted in the form of value tree.



Integrity Integrity goes a long way in practicing fair business in today's world. They in turn ensure trustworthiness amongst customers, team members and stake holders. At Rajhans (Desai-Jain) Group, integrity lies in the roots of our business. Thus they are depicted through the roots in the value tree.



Passion In today's world businesses are result oriented. Every day a new benchmark is created. At Rajhans (Desai-Jain) Group, passion forms the main trunk of our business. We passionately pursue our dreams. That which paves a path for innovative products, excellence and customer delights. Thus Passion is depicted through the main trunk of the value tree.



Excellence At Rajhans (Desai - Jain) Group, we believe in benchmarks. A team member inspires a fellow team member. And thus excellence is the core objective that can be seen by the outside world. In our value tree, excellence is depicted through the leaves that symbolize the evergreen and a blossoming business conglomerate.



Teamwork Any business house is a result of unmatched teamwork by its team members. At Rajhans (Desai-Jain) Group, every team member takes the onus to accomplish the given task. The end result: Brand Rajhans wins more hearts of people than awards and accolades. In our value tree, teamwork is depicted through the tree which is a culmination of various values and priceless team effort.



Customer delight When values form the core, customer delight is the fruit borne by the business house. We believe that customer delight forms the core essence of our existence. Thus this value is depicted through the aerial roots of the value tree.

ORGANOGRAM Mr. JAYESH DESAI (GROUP CHAIRMAN)

Mr.PRADEEP (Sales Head)

MS, ZAKHNA DESAI

Mr. DELIP BHENDERI

(MARKETINGHEAD

(HR HEAD)

)

Mr. Alpesh Balar Mr.shelendra

MR. Annarao patil (Production head)

Ms.bhavita

Sudheer maram

Mr.vishal

(AGM)

Ms. Bhumi solanki

Mr.indrajit

Mr.rajkumar

Mr. Bhavin

Ms.ankita

Mr.dhaval

Mr.anoop

(HR TEAM)

Mr. Vishal (Sales officers) (Marketing executives)

Profile of Rajhans Nutriments Pvt. Ltd: SCHMITTEN (PREMIUM CHOCOLATES) Figure: 3.1 Schmitten chocolate photos

“If there's no chocolate in Heaven, I'm not going.” Jane Seabrook, Furry Logic Laugh at Life. The mere word ‘Chocolate’ has always fascinated us. It has taken over as a special affinity in the culinary list of every culture and of course, it’s a special treat that appeals to one and all.

At Rajhans (Desai-Jain) Group, we truly understand the value & essence of cocoa and therefore came up with an idea of establishing a fascinating and high-standard chocolate factory. With a total built-up area of 1.75 lakh sq.ft, it is equipped with 100 per cent European technology with a range of machineries sourced from the UK, Denmark, Germany, Belgium and Switzerland; and beyond a shadow of a doubt, this makes us one of the fastest-growing premium chocolate factories in Asia.

With all the best-in class facilities, quality control unit and expert chocolatemakers, our new brand of luxury chocolate, ‘Schmitten’ is in a class by itself which is all set out on a delicious mission to spread happiness amongst the chocoholics from across the world. Our range of best-tasting chocolate tablets includes ‘Schmitten’ and for a variety of chocolate bars ‘Hoppits’ that are available in varied ingredients with fantabulous taste and high on energy values.

Adhering to the sheer words ‘Luxury Chocolates’, we source the richest cocoa beans from Ghana and use only the highest quality elements with their very own blend and recipes. Since we’re duly concerned over consumer choices, we produce only a luxury range of both milk and dark chocolates with portion sizes those are perfectly right for the customers and their families.

Our passion towards making the best chocolates is absolutely evident and thus, we take great pride in our constant endeavors and values for delivering the best! Figure: 3.2 Brand Ambassador of Schmitten Chocolate

SCHMITTEN

Figure: 3.3 Variety of Schmitten chocolate

HOPPITS

Figure: 3.4 Varieties of Hoppits

Milestones Table No: 3.1 Milestones Achieved by Beginning Pioneer

Edible Oil

Edible Oil

Business

Sector

1997

Diversification Silk Mills Pvt. Ltd.

Textile Sector

2000

Diversification Prime Cinema

Entertainment Sector

2001

Diversification Builders

Realty Sector

2003

Expansion

Veg.Oil Refinery

Edible Oil Sector

2004

Expansion

Constructions

Realty Sector

Pvt.Ltd 2005

Expansion

Poly-Prints

Textile Sector

2007

Expansion

Cine-World

Entertainment Sector

2010

Expansion

Infracon India

2011

Diversification Nutriments

Realty Sector Confectionery Sector

SWOT ANALYSIS Strengths



Recipes are designed and developed on Europe.



Pure cocoa based chocolate, not compound chocolate.



Value for money compared to imported chocolate.



Highly automated process lines and machineries imported from Europe.



Free from non veg./ egg based ingredients



Premium chocolates made with a real cocoa ingredient.



Hoppits are made with the milk protein as emulsifier

Weaknesses    

Customer convenience- customer face difficult to find way to reach store in the mall. Customers are not aware about existence of Schmitten and Hoppits in the town/mall. Pricing perception with respect to competitors. Lack of sales support

Opportunities 

Potential for investment. (SIS Shop in Shop)



They can increase product awareness by working hard in marketing strategies like advertisement different means, hoarding, different activities etc.



Introducing more variants in both dark and milk chocolate to curb major player.

Threats 

Rising chocolate prices is biggest threat.



Improving store standards at competition



High visibility/ marketing by competition.



Cut throat competition



Pricing power of competition

MARKET POSITION SCHMITTEN CHOCOLATES TODAY:

Figure No: 3.5 Schmitten chocolate today

Presence in 12 states through 12 Carry Forward Agents (CFA) and 233 distributors

Has a portfolio of 2 product lines

Over the past year they have captured 2% of the luxury chocolate segment.

The sales have grown by more than 50% over the past quarter.

The graphic above shows a brief overview of a company who launched its premium brand of chocolate in the Indian Luxury chocolate market in September 2014. Less than a year after its launch catering to only 3 states namely Gujarat, Rajasthan and Maharashtra with a handful of distributors, currently the company has presence in 12 states with 12 CFA and 233 distributors, hence having a robust sales and distribution network. The Indian chocolate market is dominated by Mondelez, which commands a 62% share, ahead of nearest rival Nestle on 18%. Mars and Ferrero with a share of 6% and 3% respectively – both have a premium positioning in the market. Mondelez recently premiumized its Bournville brand to appeal to the increasingly affluent Indian consumer. Mars last year launched premium tablet chocolate brand Galaxy in the country at a reduced price point and also Ferrero’s Rocher brand has proved popular among Indian consumers.

The company currently holds a portfolio of 2 products in Schmiiten which has 7 variants and Hoppits which falls under the Schmiiten range of chocolates has 4 variants. The company within its very first year of launch has captured 2% of the luxury chocolate segment in India and has started exporting to

nearby countries such as Nepal and Bhutan. Value notes expects the Indian chocolate to grow at a compounded annual growth rate (CAGR) of 16% over the next five years to reach INR 122bn ($2bn) by fiscal 2019. The Schmitten brand is manufactured in Gujarat, India and is aimed at India’s youth and young adults was launched by Bollywood actor Priyanka Chopra. The company has now grown by more than 50% quarterly since its launch in September 2014, thus already mounting a challenge to the industry stalwarts.

CHAPTER 4 REVIEW OF LITERATURE

Annika

Lybeck,

Maria

Holmlund-Rytkonen

&

Maria

Saaksjarvi

(September 2006) Studied on Consumer Perceptions and Buying of Chocolate Bars in Finland. The researcher has used structured questionnaire and open ended question for collecting qualitative and quantitative data. Findings of the study reveals that the consumer would choose a store brand every time or never when making a buying decision. Some significant findings are that heavy-user store-brand chocolate bar buyers have more favourable attitudes towards store brands, are more price sensitive, more often seek price offers, and find availability and friends’ recommendations more important. Thus, it seems as if store-brand buyers altogether are more confident with retailers’ own products’ quality and are more sensitive to price and value for money. Prof. Ray Titus, Dr. Debashish sengupta, Ms. Alankrita Garg (February 2013) Studied on Leveraging Distribution

Networks for Competitive

Advantage. A researcher has used an unstructured qualitative questionnaire for the data collection. The information collected from the distributors, projects that Britannia has a good hold on the market in terms of distribution strategies and also that Britannia has managed to get a good market share in the biscuits category and Parle’s glucose biscuits are very popular among the rural population also as they are one of the oldest available glucose biscuits in

the market and the glucose biscuits are available at various prices which makes it feasible for a larger population to buy it.

Dr. Abdul Assis Koroth (January 2015) Studied on The Influence of Demographics on the Perception Level of Multilevel Marketing Distributors. The empirical data for this study was obtained through a survey conducted among 614 distributors of selected companies in three regions of Kerala. The study reveals that there appears to be a significant correlation between education and level of perception to multilevel marketing as people who had the lowest perception were most likely to be those with low qualifications. The study reveals that the respondents who were in Government or private employment were perceived well the concept of MLM (Multi-level marketing channel firm). Whereas more than half of the respondents who unemployed had little perception about MLM. The conclusion of the study reveals that direct sales have become so popular in India because it offers everyone the chance of becoming a successful self employed opportunity with the freedom to win.

Fazlollah Kazemi (September 2010) Studied on The Role of Media on Consumer Brand Choice a Case Study of Chocolate Industry. The researcher has used structure questionnaire and sample size was 600. Findings reveals that out of seven most preferred brands (Cadbury Dairy Milk, 5Star, Perk, Bar one, Kit Kat, Munch and Nestle, three brands (Cadbury Dairy Milk 37.7%, 5 Star 17.7% and Perk 16.2%) made up about 72% of the brand preference of consumers. It also reveals that Dairy Milk is the most preferred brand. Study also reveals that advertising plays important role in retaining customer and increasing market share. The study concludes that advertising and quality are two major factors that affect consumer preference for chocolates.

Justin Beneke, Victoria Floyd, Caroline Rono & Kimryn Sherwood (December2, 2014) Studied on Chocolate, Colour and Consideration: An Exploratory Study o Consumer Response to Packaging Variation in the South African Confectionery Sector. The researcher has used mall-intercept survey

method involves the collection of data in which a random sample of respondents passing through a shopping mall are intercepted and asked to participate in the study. Respondents were generally agreeable to the notion of the colours red, blue and purple stimulating spontaneous response in favour of purchasing chocolate confectionery at the point of sale. In this respect, orange was seen to be out of kilter with the other colours and deemed considerably less attractive in prompting spontaneous response.

Hemant J. Katole,B.V.Sangvikar (October 1, 2012)A study of consumer purchase behaviour in organized retail outlets. In this research snowball and convenience sampling method has used for sampling. Based on the retail format, the researcher decided to conduct the survey of three types of retailer which

include

supermarkets,

departmental

Stores

and

hypermarket.

Researchers used questionnaire and personal interview method for collecting data. Finding of the study suggest that shopping habits of Indian customers are changing due to their growing disposable income, relative increase in the younger population, and the change in attitudes towards shopping. In the study researchers have observed that customer purchasing behaviour towards garments & cosmetics followed by food & eatables and electronic goods.

Bhagwan Singh, Dr. Anjaney K. Pandey.A Literature study on trends in retail practise and their impact on traditional retailing in India. In this research data is collected solely from secondary sources like print journals, online journals, books, reports etc. It can be concluded that the transformation of traditional retailing to organized retailing in the form of shopping malls, hyper city, supermarkets, departmental stores, convenience store, specialty stores etc. is taking place at a regular pace in India. Global retail players are opening their outlets. Urban people are enjoying “shopptainment” in these places.

Omari Nekoro Williams (April 2015) Studied on Retail Distribution within the New York City Organic Cacao Market. In the research data is collected from face to face in-depth interview. Researcher has identified six themes from the participants, which were price point strategy, B2B relationships, differentiation, strategic locations, lack of operating capital, and customer relationships. Conclusion of the study reveals that enhancing profits in the distribution channels of small organic cacao companies requires a holistic approach in the New York Tri-State area. Companies should focus on multiple components to enhance profits in their distribution channels.

Ms. Parul Mittal, Dr. Ravinder (September 2012) Studied on Consumer Buying Behaviour and Perception towards Chocolates Brands and Its Consumption.

The objective of the study includes what was general

behaviour of consumer and then inferring the relationship that exist among the different variables to test the extent of brand loyalty and influence of one variable over the other. Findings of the study reveals that most of the respondents are consuming chocolates daily, most of the respondents are buying chocolates for personal consumption as well as for gifting purpose. The study further reveals that most of the respondent’s purchase decision is affected by display ads at store, most of the male and female are buying chocolates due to taste, availability and packaging etc. In study of 86 respondents it was found that 95% (82) respondents like Cadbury Brand, 68% (59) respondents like Nestle Brand, 24% (21) of respondents like Amul Brand & 1% respondents like Other Brand. So it can be concluded that Cadbury is most famous brand among others.

CHAPTER 5 RESEARCH METHODOLOGY

a. PROBLEM STATEMENT Some of the retailers are not aware about the Schmitten chocolate. Retailers are known about that chocolate brand but the distribution channel are not good and Hence Researcher analyzes “To analyze retailer experience of selling Schmitten as a brand of chocolate.” b. OBJECTIVE OF STUDY 

To analyze retailer experience of selling Schmitten as a brand of chocolate.



To do comparative study of Schmitten with other brands of chocolates.



To know retailer’s preference of selling brands of chocolates.



To know reasons why retailers are not selling Schmitten as a brand of chocolate.

c. RESEARCH DESIGN Research design is the plan structure and strategy if investigation conceived so as to obtain answers to research question and to control variance.

Descriptive research also known as statistical research. It describes data and characteristics about

the

population

or phenomenon

being

studied.

Descriptive research answers the questions who, what, where, when and how. This study is complex and determines high degree scientific skill to study the problem.

In This study the descriptive research design has been conducted. d. SAMPLING PLAN 

Population: All the retailers selling chocolates from their retail store in Surat city can be considered as part of population for the study.



Sample Size: In this project 100 respondents as retailers were taken as sample.



Sampling Method: In this study non probability, convenience sampling method has been used.

e. SOURCES OF DATA Basically there are two types of data collection sources: 1. Primary Data: Primary data means data collected directly from first-hand experience. Means data collected for the first time by any researcher for any research use. This study uses Questionnaire as a tool for the collecting primary data. 2. Secondary Data Secondary data are those, which have already been collected by some other person for their purpose and publish. Secondary data are usually in the shape of finished products. In this project, the secondary data such as research paper, internet, and websites etc. are used to collect for the preparation of research of project. In the study primary and secondary data both type of data has been used.

f. DATA COLLECTION METHOD This research study uses Survey as method for collecting primary data from the respondents. g. DATA COLLECTION TOOL For this project structured questionnaire was used as tool for data collection from the respondent for the purpose of conducting research. h. HYPOTHESIS TESTING BY USING CHI SQUARE TEST H0: There is no significant association between experience of selling Schmitten and selling of other products of Schmitten. H1: There is significant association between experience of selling Schmitten and selling of other products of Schmitten.

H0: There is no significant association between area and selling of Schmitten brand. H1: There is significant association between area and selling of Schmitten brand. H0: There is no significant association between type of store and selling of Schmitten brand. H1: There is significant association between type of store and selling of Schmitten brand.

i. TOOLS FOR ANALYSIS For the purpose of analysis various analytical approaches have been used like simple percentage, frequency, charts and Chi Square Test by using SPSS software. j. LIMITATION OF THE STUDY 

Respondent may give bias data which may make result of the study inaccurate.



Sample size chosen for the study was small which may not be good representative of the universe under the study.

CHAPTER 6 DATA ANALYSIS & INTERPRETATIONS

1. Since how long you are running the retail store? [ ] less than 1 year

[ ] 1 Year-3 years

[ ] 3 Year-5 year

[ ] 5 Year-7 years

[ ] more than 7 years Table: 6.1 Tenure of store Particular

Respondent

Less than 1 year

19

1-3 year

8

3-5 year

34

5-7 year

17

More than 7 year

22

Figure: 6.1 Tenure of store (%) 34 35 30 25

22

19

17

20 15

8

10 5 0

Less than 1 year

1 -3 year

3-5 year

5-7 year

More than 7 year

Respondent

Interpretation From the above graph and data, it can be stated that 34 stores were running from last three to five years, while 22 stores were running from more than seven years and 19 stores of Surat city were running for less than one year.

2. Which brand of chocolates do you keep in your store? [ ] Cadbury [ ] Kit Kat [ ] Amul

[ ] Snickers

[ ] Schmitten

[ ] Hoppits

[ ] 5-star

[ ] Munch

[ ] Perk

[

]

Others……………………………….. Table: 6.2 Brands of Chocolates Particulars

No. of Respondents

Cadbury

100

Amul

42

Schmitten

54

5- Star

3

Perk

1

Kit Kat

5

Snickers

34

Hoppits

4

Munch

65

Other

11

Figure: 6.2 Brands of chocolate (%) 100 100 80

65 54

60

42

34

40 20

3

1

5

11

4

0 Cadbury

Amul

schmitten

5 star

Perk

Kit Kat

Respondent

Interpretation

Snickers

hoppits

Munch

Other

From the above graph it can be stated that all of 100 stores were keeping Cadbury their store, 65 out of 100 stores were keeping munch in their store, while 54 stores out of 100 are keeping Schmitten in their store for selling and so on.

3. Have you ever sold Schmitten as a brand of chocolate? [ ] Yes [ ] No

Table: 6.3 have you ever sold Schmitten chocolate

Particulars

No. of Respondents

Yes

54

No

46

Figure: 6.3 have you ever sold Schmitten chocolate (%)

46% 54%

Yes

No

Interpretation

From the above data it can be found that 46 % respondents have sold Schmitten brand, while 54% respondents have not sold Schmitten yet.

4. Describe your selling experience of Schmitten on following criteria and scale: Particulars

Very good

Good Average

Poor

Very Poor

Product Awareness

1

24

27

2

0

Consumer acceptance Product quality

0

22

25

7

0

8

41

3

2

0

Product taste

13

38

3

0

0

Price

0

1

49

4

0

Packaging

2

8

36

8

0

Margin

1

7

43

2

1

Figure: 6.4 Experience of selling Schmitten (%) 49

50 45

43

41 38

40

36

35 30 25

27 24

25 22

20 13

15 10 5

8

7 1

2

0

0

0

8 32

4

3 0

00

01

0

2

8

7 0

1

21

0 product consumer awareness acceptance

very good

product quality

good

product taste

price

avaerage

poor

packaging

margin

very poor

Interpretation Form the above table selling experience of retailer as stated above, 41 retailers out of 100 said that product quality is good, while 49 respondents out of 100 said that the price is average and 43 respondents out of 100 said that margin provided by company is average and so on...

5. Compare the brand of Schmitten along with available brands of chocolate on following scale: Particulars Cadbury Schmitten Nestle Amul Mars Quality of product

47

6

1

0

0

Product variants

41

1

6

4

0

Good in taste

26

28

0

0

0

Attractive package design

49

2

1

2

0

Small units

26

0

1

27

0

Price

47

0

5

2

0

Service of distributors

49

0

4

1

0

Promotional offers

48

1

3

1

1

Figure: 6.5 Comparison with the brand of chocolates (%) 50

49

47

45

49

47

48

41

40

35 28 26

30

26

27

25 20 15 10 5

6

6 100

5

4

1

0

000

212

0

01 0

0

2

4 0

0 10

3 1 11

0 Qulity of product

Product variants

Good in test

Cadbury

attractive package design

Schmitten

Small units

Nestle

Price

Amul

Service of distributors

Promotional Offers

Mars

Interpretation As stated above 47 respondents said that Cadbury’s product quality is good than all other chocolates, while retailer feels that taste of Schmitten is better than Cadbury and all other chocolates, further more Amul and Cadbury are the two brands which has small units than other brands and service of

distributors and promotional offers are better in Cadbury than other chocolates and so on.

6. Which of the following chocolates brands do you prefer to sell among customer on following scale: [5 - Mostly Preferred, 4 - Preferred, 3 - Neutral, 2 - Less Preferred, 1 - Not Preferred] 1 Particulars 5 4 3 2 Cadbury Dairy milk

49

5

0

0

0

Nestle Kit Kat

5

27

20

1

1

Schmitten

6

23

17

8

0

Amul

0

12

21

7

14

Mars

0

8

14

4

28

Figure: 6.6 Preference to sell among customer (%)

50

49

45 40 35 30

28

27 23

25

21

20 20

17

15 10

14

12

14

8

5 6

8 7

5

4

5 0 0

0 1

0

0 1 0

0 Mostly Preferred

Preferred

Cadbury Dairy milk

Neutral

Nestle Kit Kat

Less Preferred

Schmitten

Amul

Not Preferred

Mars

Interpretation From the above table 49 respondents out of 100 said that they mostly preferred Cadbury to sell among customer, 28 respondents said that they will not prefer mars to sell among the customers and 27 respondents agreed on

nestle and 23 respondents agreed on Schmitten that they will prefer to sell among customers. 7. Share your overall experience of selling Schmitten on following scale: [ ] Very satisfactory

[ ] Satisfactory

[ ] Neutral

[ ] Dissatisfactory

[ ] Very dissatisfactory Table: 6.7 Over Experience of selling Schmitten Particulars

No. of Respondents

Very satisfactory

0

Satisfactory

21

Neutral

31

Dissatisfactory

2

Very dissatisfactory

0

Figure: 6.7 over experience of selling Schmitten (%)

35 31 30 25 21 20 15 10

5

2 0

0

0 Very Satisfactory

Interpretation

Satisfactory

Neutral

Dissatisfactory

Very Satisfactory

From the above table 31 respondents said that their experience is neutral of selling Schmitten while 21 respondents were satisfied with selling Schmitten among customers. 8. How long do you see yourself associated with the Schmitten brand? [ ] I will always sell as long as Schmitten brand is available. [ ] It depends on brand performance in coming time. [ ] I cannot commit long time. Table: 6.8 Associated with the Schmitten brand in Future Particulars

No. of Respondents

I will always sell as long as Schmitten brand is available

12

It depends on brand performance in coming time

33

I cannot commit long time

9

Figure: 6.8 Associated with the Schmitten brand in Future (%) 33 35 30 25 20

12

15

9

10 5 0 I will always sell as long as brand is available

It depends on brand performance in coming time

I cannot commit long time

Interpretation From the above table 33 respondents out of 100 said that they will associate with Schmitten as per its brand performance, while 12 respondents said that

they will sell Schmitten as long as possible while 9 respondents said that they can’t commit long time with Schmitten. 9. Are you willing to sell other products of Schmitten? [ ] Yes

[ ] No

Table: 6.9 sell other product of Schmitten

Particulars

No. of Respondents

Yes

49

No

5

Figure: 6.9 sell other product of Schmitten (%)

9%

91%

Yes

No

Interpretation From the above table 49 respondents that mean 91% said that they were ready to sell other products of Schmitten while a 9% respondent that means 5 respondents were not ready to sell other brands of Schmitten.

10. Will you recommend others to sell Schmitten brand? [ ] Yes

[ ] No

[ ] Can’t say

Table: 6.10 recommend others to sell Schmitten

Particulars

No. of Respondents

Yes

30

No

5

Can’t say

19

Figure: 6.10 recommend others to sell Schmitten (%)

35% 56% 9%

Yes

No

Can't Say

Interpretation From the above table 30 respondents were ready to recommend Schmitten to other while 5 respondents were not ready to recommend and 19 respondents were yet decided.

11. Do you find any scope of improvement in Schmitten? [ ] Yes

[ ] No

Table: 6.11 (A) Scope of improvement Particulars

No. of Respondents

Yes

52

No

2

Figure: 6.11 (A) Scope of improvement (%)

4%

96%

Yes

No

Interpretation From the above table 52 respondents found scope of improvement in Schmitten, while 2 respondents did not find any scope of improvement in Schmitten.

(B)If yes than in which area, [ ] Package Design

[ ] Taste

[ ] Price

[ ] Margin structure

[ ] Promotional activity

[ ] After sales services

[ ] Service of distributor Table: 6.11 (B) Area of improvement Particulars

No. of Respondents

Package Design

10

Price

48

Promotional activity

48

Service of distributor

35

Taste

1

Margin structure

14

After sales services

27

Figure: (B) Area of improvement (%)

50 45 40 35 30 25 20 15 10 5 0

48

48

35 27

14 10 1 Package Design

Interpretation

Price

Promotional activity

Service of Distributor

Taste

Margin Structure

After sales service

From the above table 48 respondents found scope of improvement in price and promotional activity, while 35 respondent and 27 respondents found scope of improvement in distributor and after sales service respectively. 12. Why have you not sold the Schmitten yet, state the reasons: [ ] I was not aware about the brand of Schmitten. [ ] Nobody has ask me about the Schmitten. [ ] I find better alternative brands of chocolate. [ ] I find less margin compare to other brand. [ ] If other please specify……………………………………… Table: 6:12 Reasons for not sold Schmitten yet Particulars

No. of Respondents

I was not aware about the brand of Schmitten.

20

Nobody has ask me about the Schmitten.

13

find better alternative brands of chocolate

11

I find less margin compare to other brand.

2

Others

0 Figure: 6:12 reasons for not sold Schmitten yet (%)

20 20 18 16 14 12 10 8 6 4 2 0

13 11

2 0 I was not aware about the brand of Schmitten

Interpretation

Nobody has ask me about the Schmitten

I find better alternatives brands of chocolates

I find less margin compare to other brand

Others

From the above table 20 respondents were not selling Schmitten because they were not aware about the Schmitten, 13 respondents were not selling Schmitten because customers have not asked for it, while 11 respondents were not selling because they have better alternative brand of chocolates than Schmitten.

13. If company able to work on above mentioned issues, will you be ready to sell Schmitten from your store? [ ] Yes

[ ] No

[ ] Can’t say Table: 6:13 if issue solved, will you sell Schmitten Particulars No. of Respondents Yes

27

No

17

Can’t say

2

Figure: 6.13 if issue solved, will you sell Schmitten? (%) 4%

37%

59%

Yes

No

Can't Say

Interpretation From the above table 27 respondents will ready to sell Schmitten if company will work on issues like customer acceptance, awareness of brand and its offerings etc... While 17 respondents were not ready to sell in future, and 2 respondents were unable to decide on the matter.

14. If Yes, would you like an executive from Schmitten to contact you for the same? [ ] Yes

[ ] No

[ ] Can’t say Table: 6.14 executive from Schmitten Particulars

No. of Respondents

Yes

26

No

1

Can’t say

2

Figure: 6.14 executive from Schmitten (%) 3% 7%

90%

Yes

No

Can't Say

Interpretation From the above table 26 respondents were ready to meet an executive of company to sell Schmitten while 1 respondent of them were not ready and 2 respondents were unable to decide on this matter.

HYPOTHESIS TESTING

HYPOTHESIS TESTING BY USING CHI SQUARE TEST H0: There is no significant association between experience of selling Schmitten and selling of other products of Schmitten. H1: There is significant association between experience of selling Schmitten and selling of other products of Schmitten. Table No: 6.15 Observed and expected Frequency Observed N Expected N Residual 0

46

25.0

21.0

Satisfactory

21

25.0

-4.0

Neutral

31

25.0

6.0

Dissatisfactory

2

25.0

-23.0

Total

100

Table No: 6.16 Observed N & Expected N Frequency

Observed N

Expected N

Residual

0

46

33.3

12.7

Yes

49

33.3

15.7

No

5

33.3

-28.3

Total

100

Table No:6.17 Chi-square Test Q.7 Chi-Square Df Asymp. Sig.

Q.9

40.880a 36.260b 3

2

.000

.000

Interpretation From the above test it can be found that the p value is less than level of significance i.e. 0.000<0.05 so that null hypothesis is rejected, so there is significant relationship between experience of selling Schmitten and selling of other product of Schmitten.

H0: There is no significant association between area and selling of Schmitten brand. H1: There is significant association between area and selling of Schmitten brand.

Table No: 6.18 Observed N & Expected N Frequency

Observed N

Expected N

Residual

yes

54

50.0

4.0

no

46

50.0

-4.0

Total

100

Table No: 6.19 Area Observed Expected N

N

Residual

0

46

16.7

29.3

varachha

30

16.7

13.3

city light

7

16.7

-9.7

bhatar

3

16.7

-13.7

adajan

8

16.7

-8.7

athwa

6

16.7

-10.7

Total

100

Table No: 6.20 Chi- square

Chi-Square Df Asymp. Sig.

Q.3

area

.640a

90.440b

1

5

.424

.000

Interpretation From the above test it can be found that the p value is more than level of significance i.e. 0.424>0.05 so that null hypothesis is accepted, so there is no significant relationship between area and selling of Schmitten brand. H0: There is no significant association between type of store and selling of Schmitten brand. H1: There is significant association between type of store and selling of Schmitten brand.

Table No: 6.21 Observed & Expected Frequency Observed N

Expected N

Residual

yes

54

50.0

4.0

no

46

50.0

-4.0

Total

100

Table No: 6.22 type of Stores Frequency

Observed Expected N

N

Residual

Bakery

44

13.5

30.5

superstore

3

13.5

-10.5

Dairy

3

13.5

-10.5

4

13.5

-9.5

provision store Total

54

Table No: 6.23 chi- square

Chi-Square Df Asymp. Sig.

Q.3

store

.640a

91.926b

1

3

.424

.000

Interpretation From the above test it can be found that the p value is more than level of significance i.e. 0.424>0.05 so that null hypothesis is accepted, so there is no significant relationship between type of store and selling of Schmitten brand.

CHAPTER 7

FINDINGS



From the analysis it was found that most of the stores were running from last three to five years, while some stores were running from more than seven years and some stores of Surat city were running for less than one year.



From the analysis it can be stated that all of store were keeping Cadbury, the second brand is munch which was kept by majority of store and the third brand was Schmitten.



As stated above, selling experience of retailers, most of the retailers agreed that product quality was good, while some respondents agreed that price and margin provided by the company was average.



Most of the retailers that Cadbury’s product quality was good than all other chocolates, while retailer feels that taste of Schmitten was better than Cadbury and all other chocolates, further more Amul and Cadbury are the two brands which has small units than other brands and service of distributors and promotional offers were better in Cadbury than other chocolates and so on.



Most of the respondents agreed that they mostly preferred Cadbury to sell among customer, some respondents said that they will not prefer mars to sell among the customers and some respondents agreed on Schmitten and nestle that they will prefer these two brands to sell among customers.



Most of the respondents surveyed agreed that their experience was neutral of selling Schmitten, while some respondents were satisfied with selling Schmitten among customers.



Most of the respondents agreed that they will associate with Schmitten as per its brand performance, while some respondents said that they will sell Schmitten as long as possible while very few respondents said that they can’t commit long time with Schmitten.



Most of the respondents agreed that they were ready to sell other products of Schmitten while some respondents that were not ready to sell other brands of Schmitten.



Most of the respondents were ready to recommend Schmitten to other while very few respondents were not ready to recommend and 19 respondents were unable to decide.



Most of the respondents found scope of improvement in Schmitten, while two respondents were unable to find any scope of improvement in Schmitten.



Majority of the respondents found scope of improvement in price and promotional activity, while some respondent found scope of improvement in distributor and after sales service respectively.



Most of the respondents were not selling Schmitten because they were not aware about the Schmitten, some respondents were not selling Schmitten because customers were not asking for it, while very few respondents were not selling because they have better alternative brand of chocolates than Schmitten.



Most of the respondents were ready to sell Schmitten if company will work on

awareness

issue,

consumer

acceptance,

and

comparative

performance, margin issue, mentioned in while some respondents were not ready to sell.



Most of the respondents were ready to meet an executive of company to sell Schmitten while one respondent was not ready and 2 respondents were not cleared about that.



It was also statistically proven by using chi square test that there is significant relationship between experiences of selling Schmitten and selling of other product of Schmitten.



It was also statistically proven by using chi square test that there is no significant relationship between areas, type of store and selling of Schmitten brand.

CHAPTER

8 CONCLUSIONS

The problem of the research is that most of the respondents were aware of the Schmitten brand but distribution network was not proper so the researcher aim is to find retailer experience of selling Schmitten brand and the conclusion is as below: It is concluded that most of the respondent surveyed has agreed that they were having neutral experience for selling Schmitten, while some respondent were satisfied with it. It is concluded that most of the respondents agreed that product quality of the Cadbury’s good, while taste of Schmitten is good among all other chocolate. Amul and Cadbury are the two brands which has small units and good service of distributor. Most of the respondent has agreed that Schmitten has good quality as well as taste among all other brands like Cadbury, Amul, Mars, Nestle etc… It is concluded from the study that most of the respondent were ready to sell the Cadbury among the customer, while some of the respondent were not ready to sell mars and some the respondent were ready to sell the Nestle and Schmitten among the customer. It is concluded that most of the respondents were not selling Schmitten because they were not aware of the Schmitten brand, customer has not ask for the Schmitten brand, while some retailers were not selling Schmitten because they have better alternative like Cadbury, nestle, Amul, etc.

CHAPTER 9 RECOMMENDATION S



The distributors of the Schmitten were not visiting retailer store regularly as other brands distributors done so the large stock is out dated, so the company should create software to keep watch on retailers stock.



Company should work on Price, packaging and margin structure by deciding some strategy and they should make their packaging attractive.



As it was found that most of respondents were ready to sell other brands of Schmitten. Hence, it is recommended to company that they can offer other brands like Hoppist to retail stores.



Schmitten was not having good command on promotion of their brand as like Cadbury so the company should put more emphasis on promotional activity at regional as well as national level as found from retailer’s opinion.



They should also make available small units of Schmitten as a free sample so that awareness is also created as well as sale can be increased.



They should make small units of chocolates with lower price and less quantity so that every class can afford.

BIBLIOGRAPHY



Annika Lybeck, Maria Holmlund-Rytko¨ Nen &Maria Saaksja RVI. "Store Brands vs. Manufacturer Brands:Consumer Perceptions and Buying of Chocolate Bars in Finland." The International Review Of Retail Distribution And Consumer Research (2006): 471-492.



B.V.Sangvikar, Hemant J. Katole. "A study of consumer purchase behavior in organized retail outlets." Journal of Business and Retail Management Research (JBRMR) (2012): 39-47.



Bhagwan Singh, Dr. Anjaney K. Pandey. "A Literature Study On Trends In Retail Practices And Their Impact On Traditional Retailing In India." international journal of management research and development (n.d.).



Bhatt, Himanshu. Swisschocolatenowmadeinsurat. 23 octomber 2013. http://m.timesofindia.com/city/surat/Swiss-chocolates-now-made-inSurat/articleshow/24564340.cms.



Fazlollah Kazemi, Malihe Esmaeili. "The Role of Media on Consumer Brand Choice of chocolate industry." International Journal of Business andManagement (2010): 147-154.



Justin Beneke, Victoria Floyd, Caroline Rono & Kimryn Sherwood. "Chocolate, Colour and Consideration: An Exploratory Study of Consumer Response to Packaging Variation in the South African." Consumer Response to Packaging Variation in the South African (2014): 55-65.



Koroth, Dr. Abdul Assis. "The Influence Of Demographics On The Perception Level Of Multilevel." The Internationaljournalofmanagement (2013): 1-15.



Kuznetsova,

L.S.

Thefreedictionary.

n.d.

(http://encyclopedia2.thefreedictionary.com/Confectionary+industry). 

Ms.Parul

Mittal,

Dr.

Ravinder.

academia.edu.

september

2012.

(https://www.academia.edu/6498824/Consumer_buying_Behaviour_and_ Perception_towards_choco;ate_brands_and_its_consumption). 

Prof. Ray Titus, Dr. Debashish Sengupta, Ms. Alankrita Garg. "Leveraging Distribution Networks For Competitive Advantage: A Case Of Fmcg

Channel

Management

At

Itc

Ltd."

AsiaPacificJournalofMarketing&ManagementReview (2013): 76 -86. 

walia, shelly. indians arechocolate addictsbutstill suckers for tradition. 16 february 2015. (http://qz.com/345055/indians-are-chocolate-addicts-butstill-suckers-for-tradition/).



Williams, Omari Nekoro. "Retail Distribution Within the New York City Organic Cacao Market." Dissertations and Doctoral Studies (2015): 1-121.

ANNEXURE

1. Since how long you are running the retail store? [ ] less than 1 year

[ ] 1-3 years

[ ] 3-5 years

[ ] 5-7 years

[ ] more than 7 years 2. Which brands of chocolates do you keep in your store? [ ] Cadbury

[ ] Kit Kat

[ ] Amul

[ ] Snickers

[ ] Schmitten

[ ] Hoppits

[ ] 5-star

[ ] Munch

[ ] Perk

[

]

Others……………………………….. 3. Have you ever sold Schmitten as a brand of chocolate? [ ] Yes

[ ] No

If Yes than go to question no.: 4 If No than go to question no.: 12 4. Describe your selling experience of Schmitten on following criteria and scale: Particulars

Very

Good

Average

Poor

good

Very Poor

Product Awareness Consumer acceptance Product quality Product taste Price Packaging Margin 5. Compare the brand of Schmitten along with available brands of chocolate on following scale: Particulars Quality of product Product variants Good in taste Attractive package design Small units Price Service of distributors

Cadbury

Schmitten

Nestle

Amul

Mars

Promotional offers 6. Which of the following chocolates brands do you prefer to sell among customer on following scale: [5 - Mostly Preferred, 4 - Preferred, 3 - Neutral, 2 - Less Preferred, 1 - Not Preferred] Particulars 5 4 3 2 1 Cadbury Dairymilk Nestle Kit Kat Schmitten Amul Mars 7. Share your overall experience of selling Schmitten on following scale: [ ] Very satisfactory

[ ] Satisfactory

[ ] Neutral

[ ] Dissatisfactory

[ ] Very dissatisfactory 8. How long do you see yourself associated with the Schmitten brand? [ ] I will always sell as long as Schmitten brand is available. [ ] It depends on brand performance in coming time. [ ] I cannot commit long time. 9. Are you willing to sell other products of Schmitten? [ ] Yes

[ ] No

10. Will you recommend others to sell Schmitten brand? [ ] Yes

[ ] No

[ ] Can’t say 11. Do you find any scope of improvement in Schmitten? [ ] Yes

[ ] No

If yes than in which area, [ ] Package Design

[ ] Taste

[ ] Price

[ ] Margin structure

[ ] Promotional activity

[ ] After sales services

[ ] Service of distributor

12. Why have you not sold the Schmitten yet, state the reasons: [ ] I was not aware about the brand of Schmitten. [ ] Nobody has ask me about the Schmitten. [ ] I find better alternative brands of chocolate. [ ] I find less margin compare to other brand. [ ] If other please specify……………………………………… 13. If company able to work on above mentioned issues, will you be ready to sell Schmitten from your store? [ ] Yes

[ ] No

[ ] Can’t say 14. Would you like an executive from Schmitten to contact you for the same? [ ] Yes

[ ] No

[ ] Can’t say Personal Profile Retail

Store

Name:

………………………………………………………………………...… Contact

No

:

…………………………E

mail:

:

…………………………

Area:

………………….………………….. Type

of

Store

………………………………………