ON

“Understanding the retail sales Dynamics and factors

affecting the sales of Dairy and Innovation sales in
Britannia Industries Limited”

COURSE:-MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO: - SUBMITTED BY: -

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 DECLARATION

I Mr. xyz do here by declare that the Summer Project Report entitled
“Understanding the retail sales Dynamics and factors affecting the sales of
Dairy and Innovation sales in Britannia Industries Limited” has been prepared
by me & submitted to the Britannia Industry Limited, Bhubaneswar for the
completion of my Summer Internship Project work. It is the original one & not
published elsewhere or submitted to any other organization or company.

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 ACKNOWLEDGEMENT

The satiation and euphoria that accompany the successfully completion of the project would be
incomplete without the mention of the people who made it possible. I am very much thankful to
Britannia Industries Limited for giving me such a great opportunity to undertake my summer
training in Britannia, Distributor-Hindustan Agency. It was a very good learning experience for
me to have worked in Bhubaneswar territory. I wish to thank all who helped me in making this
project successful.

I would like to take the opportunity to thank and express my deep sense of gratitude to my
corporate mentor Mr. MANOJ KU SAHU, Britannia Industries Limited, Sr.ASE, Odisha who
heartily welcomed me for the internship. I am greatly indebted for providing the valuable guidance
at all stages of the study, the advice, constructive suggestions, positive and supportive attitude and
continuous encouragement.

Thanks to the Sudhir kumar Naik(AWSM) , Hindustan agency through him I came to know about
market status of assigned beat ,Bhubaneswar .

I would like to thank, Dr. Anil Bajpai, KSOM Bhubaneswar, for giving me a chance to gain an
exposure in the corporate world. I would also like to thank Prof. Jitendra Mohanty, Placement In
charge, KSOM, Bhubaneswar, for their kind cooperation and providing me with the academic
support.

Also I would like to thank Prof. Ashok Sar, mentor in KSOM who assisted and guided me
whenever I needed help. I owe my wholehearted thanks and appreciation to the entire staff of the
company for giving their precious time and valuable guidance during my internship program.

Last but not the least; I am thankful to Almighty, for providing me strength and resources to carry
out the project. And I want to thank my parents who provided me with unconditional love and
moral support so that I am able to do this in an efficient way. I hope that I can build upon the
experience and knowledge that I have gained and make a valuable contribution towards this
industry in coming future.

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 CONTENTS

Declaration …………………………………..... I

Acknowledgement..……………………………. II

SL NO. CHAPTERS PAGE

NO.
1 Executive Summary 5
2 Company Profile 6,7

3 Introduction 8
4 Objectives of the Study 9

5 Research Methodology 10
6 Data analysis & Interpretation 11,12
7 Marketing Strategy (Marketing Mix) 13,14

8 Customer Value Analysis 15

9 Sales Strategy of BIL 16,17
10 SWOT Analysis 18
11 Findings & Recommendations 19
12 Conclusion 20
13 Annexure 21

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 EXECUTIVE SUMMARY

“Understanding the retail sales Dynamics and factors affecting the sales of
Dairy and Innovation sales in Britannia Industries Limited.”

Progress is a continuous process. It is relative and absolute. We cannot stop at a certain destination
and declare that target has been achieved.
The summer training program is to give the future manager a feel of the corporate happening and
work culture. These real life situations are entirely different from the stimulated exercise enacted
in an artificial environment inside the classroom and it is precisely because of this reason that the
summer training program is designed. The summer training is a bridge between the institution and
the organization. The summer training program helps to understand how theoretical knowledge
will be applied in practical field.

The above entitled summer internship project was started in Britannia Industry Limited on 5Th
may 2017 under the guidance of Mr. MANOJ KU SAHU, SR. ASE BIL.

The ultimate objective of the project is categorized into three parts:-

 Understanding the retail sales

 Factors affecting the sales of Dairy Products
 Factor affecting sales of Innovation Sales

The above three objectives were taken into consideration as the job role of my project work and I
had worked with the company to fulfill all the associated tasks to the above objectives. When I
was done with my project work, most of the tasks were covered off with works assigned to me by
the company and all the objectives of the project had met.

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 COMPANY PROFILE

The company was established in 1892, with an investment of ₹265.[4] Initially, biscuits were
manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the Gupta
brothers mainly Nalin Chandra Gupta, a renowned attorney, and operated under V.K Brothers." In
1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a partner and The
Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory was set up in
1924 and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits were in high demand
during World War II, which gave a boost to the company’s sales. The company name finally was
changed to the current "Britannia Industries Limited" in 1979. In 1982 the American
company Nabisco Brands, Inc. acquired the parent of Peek Freans and became a major foreign
shareholder. The contribution of this position was of Bhavya Chugh and his family.

PRODUCT OVERVIEW:

Britannia Industries Limited is a food company, which is engaged in the manufacture of biscuits,
cakes and rusks. The Company operates through the Foods segment, which comprises bakery and
dairy products. The Company's product brands under biscuits category include Good Day,
Crackers, Nutri-Choice, Marie Gold, Tiger, Milk Bikis, Jim Jam + Treat, Bourbon, Little Hearts,
Pure Magic and Nice Time. Its products under breads include Whole Wheat Breads, White
Sandwich Breads and Bread Assortment. Its products under diary category include Cheese, Fresh
Dairy and Accompaniments. Its products under cakes category include Bar Cakes, Veg Cakes,
Chunk Cake, Nut & Raisin Romance, and Mufills. Its product under rusk category includes
Premium Bake. The products of the Company are exported across the world, which include Gulf
Cooperation Council Countries (GCC), African Countries and American Countries. Its
subsidiaries include Manna Foods Private Limited and International Bakery Products Limited.

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 ABOUT THE DISTRIBUTOR

Name of the Distributor- Hindustan Agency, Mancheswar, Bhubaneswar

 This agency distributes Britannia, Kelloges, Nestley, Coca-Cola and Cadbury products in
Bhubaneswar territory since a long period of time.
 Apart from that, this agency distributes MDH, Pedilite, and Samsung in other areas of
Odisha including Bhubaneswar.
 It is the major distributor of Britannia in Bhubaneswar territory.
 They used to keep all SKUs of all the product lines of BIL.
 There are 27 salesmen (AWSM) in Hindustan agency are working only for Britannia.
 The total delivery staffs of Britannia are all around 50.
 Beyond that Hindustan agency deploys ready stock vehicles to catch small beetle shop and
small Kirana shops.
 In Hindustan agency man power management categories divided like logistic, operation,
distribution.
 As Hindustan agency having maximum volume of sales, a single territory sales in charge
looks after the sales of Britannia.
 Per month volume of Britannia products at Hindustan agency approximately 3crore.
 The damaged product of Britannia are collected from the retail outlets are burnt.
 Moreover, they follow the FIFO strategy in their warehouse.

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 INTRODUCTION

When I joined the company at the beginning, I first tried to understand about different sales
strategy used in the industry for retailing and after getting a complete idea about the various
products and the sales strategy I moved forward towards my project work. I was assigned to the
task of sales push of the dairy products and the innovation sales as well. But before applying any
sales strategy to push the retail sales, I was supposed to find out the different factors affecting the
sales of these products and after getting a complete understanding about the different issues with
the retail outlets, the required steps was taken by me to achieve the objectives.

During my project work I had completed market observation with the AWSM assigned with me
and did a market survey with the questionnaire provided by BIL to get the market status of BIL.
This process was done in the particular beats of given location to cover of the general trades.

I was directly connected with the Retail outlets to create a direct link with BIL through the “SMS”
process. Moreover, I even worked to push the sales and achieve the targets with the premium
outlets like KATs and LAKSHYAs. KIOSK (Ready stock) always being a challenging job to push
the sales as some of them keenly dependent on the wholeseller, I also pushed the sales in this
segment of Distributer. Coming to marketing activities, I added good No. of new outlets to the
distributor along with merchandising in GTs, adding to it, I have promoted BCR catalogues in
some outlets.

However after working in BIL for two months of duration, I came up with a conclusion that
retailers having positive impression for BCRD, some of the outlets were having negative
impression with the distribution issue. Moreover, I pushed the sales of Dairy whitener up to some
extend as well as the innovation products. Apart from the price discrimination, I added new outlets
to distributors for a long period of time.

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 OBJECTIVE OF STUDY

1. To visit the existing outlets of allotted geographical beats to have a clear observation of the outlets
dealing with the BIL products and also to find out the ECO Status of certain specified biscuit items.

2. Finding out the different factors affecting to the sales of the dairy products and then take the
appropriate steps for sales push.

3. Also finding out the factors affecting the sales of innovation sales Like: Chunkies, Gooday Nuts
Cookies, Tiger Cream Chocó Vanilla, Milk Rusk, Mathari Masti, Veg Cake, Burbon and then do
implement the strategy to sales push.

SCOPE

1. This study helps me to visit different beats in Bhubaneswar territory like Laxmisagar, Baragargh
Brit, Bijebi Nagar Canak road , Tanka pani for general tarade .

2. For opening of new outlets as well as look after the stock avialibilitry to nRatjhyatra and I have
covered area like, Garage chowk, Samantarapur, Sishupalagargh, Nuagon, Studiochowk . These
places have also been covered foe promotion and branding

3. It helps me to work with premium outlets like KATs and LAKSHYAs, in those areas of
Bhubaneswar in which these outlets were located.

4. It has been always a privilege to work with Hindustan Agency as a distributor point.

5. It helps me to understand the concept of supply chain and distribution channel.

REASERCH METHODOLOGY
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One had to depend mainly on primary data as first as knowledge was required about market
position of various BCRD market.

Data Collection Method: For the purpose of the study both Primary and Secondary data are
required.

Primary data- This kind of data is collected from the existing as well as newly added outlets
through the structured questionnaire provided by BIL and the formal conversation with the retail
outlet owner as well.

Secondary data- This kind of data is collected from the internet and the official website of BIL.

Sampling- All the retail outlets of a particular beat in Bhubaneswar territory are taken as sample
for the research.

Sample size – 200 Retail outlets are taken as respondents for service satisfaction of Britannia.
100 Retail outlets are taken as respondents for ready stock satisfaction of Britannia.

Area of Sampling- Different beats in Bhubaneswar territory

DATA ANALYSIS AND INTERPRETATION

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 1. Service Satisfaction of BIL:-

15.5%

8.5%

1
2
76% 3

Interpretation:-

Here this s the market survey result which shows that 76% of the total No. of outlets of the
particular beats was satisfied with the service of Britannia. They were pleased with the work of
AWSM as well as the distribution channel. In fact the damage issue settlement by BIL is very
good.

Coming to the other aspect, 24% of the total No. of outlets was not satisfied with the service of the
company mostly for two reasons. 15.5% of the outlets was dissatisfied due to the company schemes
were not communicated by the AWSM which were floated by the company every month and on
the other hand 8.5% of the outlets was not satisfied due to delay in the supply of the products to
the outlets by the distributor.

2. Ready Stock Satisfaction :-

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 21%
37%

1
14%
2
3
4
28%

Interpretation:-

During the project work in ready stock unit it has been observed that 37% of the total No. of
outlets was satisfied with the distribution process of ready stock.

Apart from that 28% of the total No. of outlets were not satisfied as a reason being lack of
varieties of BCR items with the distribution vehicles.

21% of the total No. of outlets was not aware about the schemes provided by BIL for the
retailers, which caused dissatisfaction towards the distributor and the BIL as well.

Again 14% of the total No. of outlets was not satisfied with BIL as they are availing the BCRD
items from the wholesalers with a higher margin than the distributor.

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 MARKETING STRATEGY

Marketing Mix:-
Every marketer wants to develop their market share in the FMCG sector. It is indeed you have to
strengthen your 4Ps to reach out the customers with their desired value.

1. Product
Product has always been a utility in a consumer mind set. The major types of offerings are
floated by Britannia to the market is BCRD. The company from the old age is always being
serious about the running trends in the market. They always give emphasis on quality,
packaging, taste and preference as well as goods post delivery services.

2. Price:-
As a market leader, it always being a challenge with the pricing strategy following this the price
of the product are decided by the company according to the running market as well as by
observing the competitors price, if any market gap exist with a certain product company may fix
a high price for that product.

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 3. Promotion:-
In FMCG, brand awareness and product durability always help to create hype among the
consumers on that particular product, promotion make this job easy for the company. It helps to
build a brand awareness and improvement of sales as well, and bring a positive vibes to retail
outlets where a promotion is taking place.

During the project work in general trades some promotional and merchandising activities
were carried out in general trades.

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 4. Place:-
Place is always being playing a important role in marketing. As a FMCG industry, Britannia is
having a strong distribution channel through the distributor.

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 CUSTOMER VALUE ON DAIRY WHITENER AND
INNOVATION PRODUCT

Social Experimental

Customer Value

Functional Economic

SOCIAL

Dairy whitener of Britannia is being premium product, to which a specific segment of consumer
are buying to maintain their social status as its price is high . So it can be a catalyst for the other
people of the society to use such a premium product which create brand awareness.

EXPERIMENTAL

Some consumer are experimentative in nature who always prefer to try new products coming to
market and after experiencing the consumption, they would like to adopt the product if they feel
good. During my project work some consumers were convinced to take a small packet of whitener
for once at least.

FUNCTIONAL

Before consuming any product, some of the consumers show their interest to know about the
specifications and utility of that particular product, many of them consider Britannia whitener is
not a baby product rather a premium product is used as milk powder for tea making.

ECONOMIC

Some of the consumers were very much budget conscious, they are always interested to spend
money according to their wallet. So how much gram of whitener they are going to consume, it
depends upon them. If they are able to afford the price for the particular product, they would buy
or they would switch to its complements.

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 SALES STRATEGY OF BIL

As a market leader in BCR segment BIL have some different strategy. The people who are taking
order from GTs, AWSM divided into two parts like S1 & S2. It’s not possible to recall all SKUs
of BCR items when you are taking order from outlets. I was assigned to Laxmi sagar beat with
two AWSM I marked they used to not taking order as S1 & S2, even don’t use the PDA provided
to them. I visited different outlets with them to pick order, make them habituate to take order from
this device as S1 and S2.

KATS:

KAT Classic:-
Target to enroll in KAT= Rs. 15000-29999
Visibility impact= 2%
Total Pay Out =3.5%
KAT Platinum:–
Target to enroll in KAT= 30000-59999
Visibility impact= 2.5%
Total Pay Out = 4.5%
KAT Titanium: -
Target to enroll in KAT= 60000-& above
Visibility impact= 3%
Total Pay Out = 5.5%
In KATS, KAT outlets in Bhubaneswar territory were visited last week of the month to convince
them to achieve their target, owing to which they can get the extra payout from BIL. To fulfill the
target of the KAT outlets, they ordered such bulk quantity of BCR items which help the company
to capture most of the spaces of their shelves which creates a proper brand visibility in the outlets.
Both BIL and the outlets get benefits from that. Merchandizing process is applied to promote
Britannia in these KAT outlets. Here some strategies are used to get the visibility of BCR items in
these outlets clearly and make it easy to target a consumer.

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LAKSHYA:

Here again it’s a superb plan for the wholesaler. Target has been floated by the company to the
whole seller with a high volume where the payout system is bit different.

I visited some LAKSHYA outlets again convenience them to achieve their targets, in some cases
faced the difficulties also. It’s better for them to achieve at least 90 % of target owing to which
they at least get 70 % of payout.

LAKSHYA Silver Tier:

Minimum quarterly purchase amount= Rs. 125000-349999

Pay out for every Rs.10000 purchase= Rs.70

LAKSHYA Gold Tier:

Minimum quarterly purchase amount= Rs. 350000-699999

Pay out for every Rs.10000 purchase= Rs.90

LAKSHYA Platinum Tier:

Minimum quarterly purchase amount= Rs. 700000 and more

Pay out for every Rs.10000 purchase= Rs.110

MARGIN:
Britannia Industry Limited is having BCRD segments, so margins are also different from product
to product.

 In some biscuits, cakes and rusks, they provide 10% margin to the outlets.
Example- Rs.32/1.10=Rs.29.09 (purchasing price of the retailer)

 In some biscuits, cakes and rusks, they provide 12% margin to the outlets.
Example- Rs. 32/1.12=Rs. 28.57(purchasing price of the retailer)

 In dairy segment Britannia provides 9% margins to the retailers.

 Example- Rs. 75/1.09=Rs. 68.80(purchasing price of the retailer)

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 SWOT ANALYSIS

STRENGTH WEAKNESS

 BCR division is very strong; all SKUs  Dairy product is not preferable by
are nicely available in outlets. lower income groups.
 Strong distribution network.  Price discrimination is there in
 “Eat healthy, think better” tagline market between the distributor price
spread a positive vibes among the and whole seller price.
consumer.
 Innovation products are highly
recommended for taste & preference.
 KATs and LAKSHYAs are good
program to develop market share.
 Items like vita marie, marie gold
tiger, gooday are the strong SKUs of
BIL.
 S1 &S2 AWSM system acts as
unique strategy than other
competitor.
 Supply chain is designed in such a
way tominimize the cost.

OPPORTUNITY THREATS

 Increase the varieties in ready stock  Local competitor in biscuits and

unit so that the Product line can be cake.
extended.  ITC Bounce in Rs.5 category and
 Dairy advertising can be improved Other dairy companies.
in digital media.
 Packaging of tiger can be round
shape as previously it was there to
meet high sales.

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 FINDINGS & RECOMMENDATIONS

1. It has to be bound for the sales people to take the electronic device to take order.

2. Ready stock should carry more varieties so that KIOSK sales man should have some

knowledge about sales which means how to sales the product.

3. Assign merchandiser in general trade outlets, as Bhubaneswar is going to be No.1 smart

city, display is very essential in these outlets.

4. The most important thing to maintain FIFO strategy in retail outlets as most damage occurs

due to not applying FIFO in their selves.

5. Dairy display should be there in KAT outlets, which can improve the visibility as well as

dairy sales.

6. Schemes should be there for the KAT outlets apart from the extra bonus they are getting .

7. One monthly inspection should be done in every month to the outlets to check the service

and the schemes made for the retailers, whether they are getting or not.

8. Add the KIOSK type outlet nearer to the school areas to order process system by observing

the outlet status whether the shop is there for long term or not.

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 CONCLUSION

After working two months in Britannia I conclude that, during the 1st week of our
project we digitally connected the outlets with Britannia directly, which can make
direct relationship between BIL with the retailer. We pushed the sales of dairy as
well as the other SKUs of BCR items. Moreover, I improved the sales of the assigned
beat as well.

The sales strategy in retail outlets is always being a long term growth to
Britannia. KATs & LAKSHYAs are the two programs which always increase the
high volume sale in market. With a short time distribution process BCRD sales can
be more improved for Britannia. The Supply chain is designed in such way to reduce
cost. By taking promotional activity in general trades Britannia can gain maximum
market share than its competitors. I had a very wonderful experience and thankful
working with Britannia.

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 ANNEXURE

The following Questionnaire was provided by the Britannia Industry Limited to do a market
observation and to get a complete overview of the present market scenario:-

QUESTIONARY OF BRITANNIA INDUSTRIES LIMITED, BHUBANESWAR

NAME OF INTERN:- CONTACT NUMBER:- ADDRESS :- AWSM NAME:-
DATE:- MAIL ID:-
COURSE:- BEAT NAME:-
BATCH:-
COLLEGE NAME:- DATE:-
AWSM
WEEKLY WEEKLY Tiger DAIRY
BIL INNOVATION GOODAY TOP RS. CHEESE OUTLET
SL VISITED UPDATION OF Cream Rs. WHITENER
OUTLET NAME LOCATION CONTACT NUMBER SERVICE SALE VALUE Rs.5 SALE 10 SALE SALE VERIFICATION (
NO:- THE SKIM BY 5 SALE SALE VALUE
(Y/N) (In Rs.) Value VALUE VALUE Y/N)
OUTLET AWSM (Y/N) VALUE (Rs.)
(Y/N)

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