SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF POST GRADUATE DEGREE IN MBA

TRAINING NEEDS IDENTIFICATION FOR THE SALES EXECUTIVES AT MOTHER DAIRY FRUIT AND VEGETABLE PVT. LTD., NEW DELHI

SUBMITTED BY: Neha Kapoor MBA HR BIMM

INDUSTRY GUIDE: Mr. Shashank Teotia Manager- HR

INTERNAL GUIDE: Prof. T.J.Vidyasagar

EXECUTIVE SUMMARY
The project was conducted for identifying the training needs of the sales force at Mother Dairy Fruit and Vegetable Pvt. Ltd. The sales force is constituted of 160 Sales Executives (SE) and Junior Sales Executives (JSE). This project was conducted for a period of 2 months dating from 2nd June, 2008 to 1st Aug, 2008. The project began with an understanding of the sales job: the tasks involved and the skills required for performing them. The information regarding the same was collected from secondary as well as primary sources. The secondary sources were Job Descriptions, books and websites. The managerial staff as well as the sales executives of each vertical were interviewed for a better understanding of the work and key responsibilities of the JSEs and SEs. A comprehensive list of Knowledge, Skills and Abilities was collated for each vertical on basis of the responses of the interviewees. This list was circulated among the executive sales force as well as the Area Sales Managers. The Sales Executives and the Junior Sales Executives were asked to give themselves a rating on each skill, on a scale of 1 to 10. Their seniors were asked to rate the executives in a similar manner on the basis of their performance at work. These ratings were then analysed in order to determine the competencies that need to be emphasized for training of the sales executives. The recommendations were made on the priority and content of training needs for each department. These training needs have been defined further in this project.

INDEX
Chapter no. 1.0 1.1 1.2 2.0 2.1 2.2 2.3 3.0 3.1 3.2 3.3 3.4 4.0 4.1 4.2 4.3 4.4 4.5 5.0 5.1 5.2 6.0 6.1 6.2 6.3 6.4 7.0 7.1 7.2 8.0 9.0 Chapter title INTRODUCTION RATIONALE OF THE STUDY SECTOR PROFILE IN BRIEF INDUSTRY/ SECTOR PROFILE THE FOOD PROCESSING INDUSTRY DRIVERS OF GROWTH & CONSTRAINTS SWOT ANALYSIS OF THE FOOD PROCESSING INDUSTRY COMPANY AND PRODUCT PROFILE NDDB MDFV(P)L: COMPANY PROFILE PRODUCT PROFILE MDFV(P)L STRUCTURE LITERATURE SURVEY MEANING AND NATURE OF TRAINING TRAINING, EDUCATION AND DEVELOPMENT IMPORTANCEOF TRAINING AND DEVELOPMENT INPUTS IN TRAINING AND DEVELOPMENT IDENTIFICATION OF TRAINING NEEDS OBJECTIVES AND SCOPE OBJECTIVES OF STUDY SCOPE OF STUDY RESEARCH METHODOLOGY TYPE OF RESEARCH SAMPLING DATA COLLECTION TECHNIQUES AND TOOLS TOOLS FOR ANALYSIS DATA ANALYSIS AND INTERPRETATION LIST OF KSAs FROM SECONDARY SOURCES DIVISION WISE KSA LIST OBSERVATIONS AND FINDINGS CONCLUSIONS 3 Page no.

10.0

RECOMMENDATIONS REFERENCES & BIBLIOGRAPHY ANNEXURES

CHAPTER 1 INTRODUCTION

1.0 INTRODUCTION
1.1 RATIONALE OF THE STUDY Continuous changes in the external environment demand that organizations must continuously strive for higher levels of performance, which can be in terms of greater productivity, increased efficiency and higher quality of goods and services. Training is an organized activity for increasing the knowledge and skills of existing or future employees for doing specific jobs with proficiency. It involves the development of skills that are usually necessary to perform a specific job. A training needs assessment is conducted to ensure that there is a need for training and to identify the nature of what a training programme should contain. The assessment provides the information needed for developing a training program that is based on the learning needs of the participants. It, thus, increases the relevance of the training and the commitment of the learners. The project on identification of training needs at Mother Dairy Fruit & Vegetable Pvt. Ltd. was carried out to identify the knowledge, skills and abilities (KSA) that the sales executives require to perform their job and the skills that they require training in, to improve their effectiveness in fulfilling the set targets. Training sales force is even more important in organizations like MDFV(P)L, which are marketing-driven. That is because their major goal is to sell profitably and training can
increase the performance of salespeople, resulting in increased sales

Sales training may be

defined as those things which are done to help salespeople gain mastery in the skills, concepts, behaviors, and attitudes that will enhance their expertise in influencing prospects to make positive purchasing decisions. Sales training concentrates on how prospective sellers and buyers interact. It provides tools and techniques that help salespeople learn what they must know in order to persuasively present their goods or services to buyers in terms that buyers will understand and ultimately respond to.

Knowledge - an organized body of information, usually factual or procedural in nature. For example, having knowledge of human resources' rules and regulations could be used

as a KSA for a Human Resources Specialist position. To respond to this KSA, you should indicate what human resources rules and regulations you are familiar with, discuss how you applied these rules and regulations in the work environment, and describe other significant situations you were involved in where you applied these rules and regulations.

Skill - the proficient manual, verbal, or mental manipulation of data or things. For example, having skill with operating personal computers could be used as a KSA for an Office Automation position. To respond to this KSA, you should indicate what type of personal computers you have operated, discuss the various types of software programs you have used, and describe how these programs were used in your work environment.

Ability - the power or capacity to perform an activity or task. For example, having the ability to use a variety of laboratory instruments could be used towards a Laboratory Technician position. To respond, you should describe the types of laboratory instruments you have used, discuss the types of assignments you completed using the laboratory equipment, and describe the impact using the laboratory equipment had on your work environment.

1.2.0 SECTOR PROFILE FMCG (Fast Moving Consumer Goods) Sector primarily deals with the production, distribution and marketing of consumer packaged goods, which are normally consumed by the consumers at a regular interval. FMCG products have a quick turnover, and relatively low cost. Some of the common FMCG products are food and dairy products, coffee, tea, toiletries, soap and detergents, cosmetics, tooth cleaning products, shaving products as well as items such as glassware, bulbs, batteries, paper products and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, soft drinks, tissue paper and chocolate bars. A subset of FMCG is Fast Moving Consumer Electronics such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products. The following factors make India a competitive player in FMCG sector: Availability of raw materials: Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the 7

second largest producer of rice, wheat and fruits and vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. Labor cost comparison: Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets. Presence across value chain: Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc.

1.2.1 SECTOR SIZE & GROWTH Overall, the FMCG sales are expected to grow at 16 per cent, compared to 14.5 per cent during the fiscal year 2007-08, when FMCG sales stood at Rs 854.7 billion. One of the reasons cited for growth in this sector, is the emergence of modern retail format with its effective inventory management systems. According to a FICCI survey, rural India offers tremendous scope and potential for FMCG products. The estimated number of households using FMCG products in rural India have grown from 13.6 crore in 2004 to 14.3 crore in 2007. FMCG Sector is expected to grow by over 60% by 2010. That will transform into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010 (1). FMCG market remains highly fragmented with almost half of the market representing unbranded, unpackaged home made products which present a huge opportunity to branded product manufacturers to convert consumers from unbranded to branded products. Key factors to success in the FMCG sector are distribution, in rural markets and advertising, in urban markets. New products require a large investment in product 8

development, market research, awareness campaigns, free samples and product promotions
(2)

1.2.2 THE FOOD PROCESSING INDUSTRY The Food Processing category in the FMCG sector is gaining popularity in India, with growing urbanization, increasing disposable income, emergence of organised food retail, changing lifestyles and food consumption patterns driving growth for processed foods in India. The Indian Food Processing Industry is one of the largest in terms of production, consumption, export and growth prospects. The Ministry of Food Processing, Government of India, indicates the following segments within the Food Processing industry: Dairy, Fruit and Vegetable processing Grain processing Meat and poultry processing Fisheries and Consumer foods like packaged foods, mineral water, beverages and soft drinks etc. The food industry serves as a link between the agricultural and industrial segments of the economy. Strengthening this link is of critical importance to improve the value of agricultural produce, ensure fair prices to farmers and at the same time create favourable demand for Indian agricultural products in the world market. A thrust to the food processing sector, thus implies significant development of the agricultural sector.

CHAPTER 2 INDUSTRY/ SECTOR PROFILE

10

India is one of the major food producers in the world and has the potential of being the biggest with the food and agricultural sector. The government has accorded the Food Industry, a high priority, with a number of fiscal reliefs and incentives, to encourage commercialization and value addition to agricultural produce, for minimizing pre/post harvest wastage, generating employment and export growth. The country has 1/10th of the world's arable land at around 160 million hectares, which is higher than China. The country produces over 500 million tonnes of agricultural, horticultural and dairy produce annually, thus making it one of the world's largest food producers. India is the 2nd largest vegetable and 3rd largest fruit producer in the world. India currently produces about 50 million tonnes of fruit (about 9% of the world's production) and about 90 million tonnes of vegetables (11% of the world's production). With India's food production likely to double in the next decade, there is an opportunity for large investments in food and food processing technologies, skills and equipment. A developed food processing industry would not only reduce wastages, but would also increasingly fetch remunerative income to farmers. 2.1 FOOD PROCESSING INDUSTRY: A dominant segment of the food industry, food processing is estimated to be worth US$ 115 billion. It comprises agriculture, horticulture, animal husbandry, and plantation(3). Segmentation of different sub-sectors in food processing industry: Sub-Sectors Dairy Fruit & Vegetable Grains & Cereals Fisheries Meat & Poultry Packaged Foods Products Whole Milk Powder, Skimmed milk powder, Condensed milk, Ice cream, Butter and Ghee, Cheese Beverages, Juices, Concentrates, Pulps, Slices, Frozen & Dehydrated products, Potato Wafers/Chips, etc Flour, Bakeries, Starch Glucose, Cornflakes, Malted Foods, Vermicelli, Beer and Malt extracts, Grain based Alcohol Frozen & Canned products mainly in fresh form Frozen and packed - mainly in fresh form, Egg Powder Snack food, Namkeens, Biscuits, Ready to eat food, Alcoholic and Nonalcoholic beverages

11

SUBSECTORS Growth rate of the market SizeOutput/ Value Extent of Processing Share of Organised Sector

DAIRY FRUIT & SECTOR VEGE 20% 20%

MEAT & PACKAGED FISHERIES POULTRY FOODS 10% US$ 13 million 1% 20% 6.4 million tonnes 12% 8%

BEVERAGES 27%

US$ 375 2.33 million million tonnes 37% 2%

US$ 2 billion US$ 155 million

15%

48%

5%

80%

77%

ANALYSIS OF EACH SUB-SECTOR

2.1.1 SECTOR SIZE (4) The size of Indian Food Processing Industry is US$70 billion. It is the fifth largest Industry in India. The share of Indias export of processed food in global trade is about 1.7%. India ranks first in the world in milk production, which increased from 17 million tonnes (MT) in 1950-51 to about 102 MT by 2007-08. Primary food processing (packaged fruit and vegetables, milk, milled flour and rice, tea, spices, etc.) constitutes around 60% of processed food. Only 2.2% of fruits and vegetables are processed in India compared to up to 75% in many developing countries. In comparison, about 35% of milk and 26% of marine products undergo processing. At US$ 300.67 million, the juice and juice drink category is among the fastest growing segments of the approximately US$ 2.38 billion packaged beverages category.

12

STRUCTURE OF INDIAN FOOD PROCESSING INDUSTRY*

13

*Source: FAIDA/ Ministry of Food Processing Industries

2.2.2 STRUCTURE At present the food processing sector employs about 1.6 million people directly and about 35 million people indirectly. In 2004-05, food processing sector contributed about 14% of manufacturing GDP with a share of Rs. 2,80,000 Crores. Of this, the unorganized sector accounted for more than 70% of production in terms of volume and 50 % in terms of value. The Indian food processing industry is largely unorganized and has few plants with small scale economies. About 80 per cent of milk produced in the country is in the unorganized sector and the remaining 20 per cent is shared equally by cooperative and private dairies. However, some co-operatives, such as the Gujarat Co-operative Milk Marketing Federation in milk with its Amul brand of dairy products, have transformed certain sub-sectors. Major international companies such as Nestle, Cargill, Unilever, Danone, PepsiCo and Cadbury are already present in India contributing to the organized segment. Over the last few years, there has been a positive growth in ready to serve beverages, fruit juices and pulps, dehydrated and frozen fruits and vegetable products, tomato products, pickles, convenience vegetable-spice pastes, processed mushrooms, and curried vegetables.

2.1.3 GROWTH (3) The growth of food processing sector has nearly doubled to 13.7 per cent during the last four years, according to the Minister of State for Food Processing Industries, Subodh Kant Sahai. India has set a target of growing at 20 per cent by 2015. Experts estimate the industry GDP at 6-8 per cent with value addition of food products to increase from 8 per cent to 35 per cent by the end of 2025.

14

 According to the 'India Food Report 2008', investments to the tune of US$ 23.5 billion are in the pipeline to be made in the food processing industry over the next three years. Significantly, processed food exports have increased from US$ 6.98 billion in 2002-03 to US$ 20.51 billion in 2006-07, recording a whopping 193.83 per cent growth rate. The opportunity for growth is huge when seen against the fact that while a mere 1.3 per cent of food is processed in India, nearly 80 per cent of food is processed in the developed world. 2.1.4 OUTLOOK (4) The domestic processed-food market, at US$115 billion in FY 2006 is expected to grow to US$310 billion by FY 2015. India aims to increase its share of world trade in this sector from 1.7% currently (US$7.5 billion) to 3% by 2015 (US$20 billion).

2.1.5 POTENTIAL (4) Factors that are likely to fuel rapid growth in demand for processed food in the domestic market are: Changing lifestyles and growth in disposable income. 15

Rising double-income families and proportion of women in the workforce. Decreasing prices of processed foods, making them more affordable thereby accessing a much larger market. Rapid growth in organised retail (> 20% p.a.) with a variety of retail formats being developed.

Estimated investment of about US$24 billion in the next 8 years. Major investment opportunities lie in processing milk, sugar, fruit, vegetables, grain based snacks and marine products. An estimated 30% of new capacity could be for the export market.

Targets for Processed Food (% of total production) Item 2010 Fruit and Vegetables 4 Dairy 20 Marine Products 15 Meat 28 Poultry 10

2015 8 30 20 35 15

Source: Ministry of Food Processing - Vision Document

2.1.6 GOVERNMENT SUPPORT AND POLICIES (5) Food processing and agro industries have been accorded high priority with a number of important relieves and incentives. Some of the important policy changes are as follows: Regulation & Control No industrial license is required for almost all of the food & agro processing industries except for some items like beer, potable alcohol & wines, cane sugar, hydrogenated animal fats & oils etc. and items reserved for exclusive manufacture in the small scale sector like pickles & chutneys, bread, confectionery (excluding chocolate, toffees and chewing-gum etc.), rapeseed, mustard, sesame & groundnut oils etc. A maximum of 24% foreign equity is allowed in SSI sector FDI up to 100% is permitted under the automatic route in the food infrastructure (Food Park, Cold Chain/warehousing). 16

 Use of foreign brand names are now freely permitted. MRTP (Monopolies & Restrictive Trade Practices Act) rules and FERA (Foreign Exchange Regulation Act) regulations have been relaxed to encourage investment and expansion by large corporates. Most of the items can be freely imported and exported. Capital goods are also freely importable, including second hand ones in the food processing sector. Fiscal Policy & Taxation Excise & Import duty rates have been reduced substantially. Many processed food items are totally exempt from excise duty. Custom duty rates have been substantially reduced on plant & equipments, as well as on raw materials and intermediates, especially for export production. Corporate taxes have been reduced and there is a shift towards market related interest rates. There are tax incentives for new manufacturing units for certain years, except for industries like beer, wine, aerated water using flavouring concentrates, confectionery & chocolates. Export Promotion Food processing industry is one of the thrust areas identified for exports. Free Trade Zones (FTZ) and Export Processing Zones (EPZ) have been set up with all infrastructure. Also, setting up of 100% Export Oriented Units (EOU) is encouraged in other areas. They may import free of duty, all types of goods, including capital goods. Units in EPZ/ FTZ and 100% Export Oriented Units can retain 50% of foreign exchange receipts in foreign currency accounts. 50% of the production of EPZ/FTZ and 100% EOU units are saleable in domestic tariff area. All profits from export sales are completely free from corporate taxes. (Source-Food Processing Industries in India) 2.3 DRIVERS OF GROWTH & CONSTRAINTS (7) The post-liberalisation trends that have given an impetus to the food processing sector are: Growing urbanization 17

 Increasing disposable income Emergence of organised food retail Changing lifestyles and food consumption patterns Consumption patterns in India have been undergoing a visible shift. Earlier, the share of cereal products was the highest, followed by milk & milk products, vegetables, edible oil and meat products. However, in recent years, the growth rates for fruits, vegetables, meat and dairy products have been higher than cereals and pulses. This shift in turn implies that there is also a need to diversify the food production base to match the changing consumption preferences. Going by this pattern, in future, there is increasing demand for prepared meals, snack foods and convenience foods and further on the demand is shifting towards functional, organic and diet foods. Some of the key constraints identified by the industry include: Lack of suitable infrastructure in terms of cold storage, warehousing, etc Lack of adequate quality control and testing infrastructure Inefficient supply chain and involvement of middlemen High inventory carrying cost High taxation High packaging cost Affordability and cultural preference of fresh food Highest priority has been accorded by the Government for the development of infrastructure. The Government has already taken several initiatives on this front which include developing of the following: Food parks Packaging centres Modernised abattoirs Integrated cold chain facilities Irradiation facilities 18

 Value added centres.

2.4 SWOT ANALYSIS OF FOODPROCESSING INDUSTRY Strengths Abundant availability of raw material. Priority sector status for agro-processing given by the Central Government. Vast network of manufacturing facilities all over the country. Vast domestic market. Low labour costs- production cost are 40% lower than in developed markets. Weaknesses Inadequate infrastructure. Lack of adequate quality control & testing methods as per international standards. Inefficient supply chain due to a large number of intermediaries. High requirement of working capital. Inadequately developed linkages between R&D labs and industry. Seasonality of raw material. Opportunities Large crop and material base offering a vast potential for agro processing activities. Setting of SEZ/AEZ and food parks for providing added incentive to develop greenfield projects. Rising income levels and changing consumption patterns. Favourable demographic profile and changing lifestyles. Integration of development in contemporary technologies such as electronics, material science, bio-technology etc. offer vast scope for rapid improvement and progress. Opening of global markets. 19

Threats Affordability and cultural preferences of fresh food. High inventory carrying cost. High taxation. High packaging cost. Source: Ministry of Food Processing Industries, Annual Report 2003-04 2.5 PROFLIE OF KEY PLAYERS PLAYER Britannia Industries Ltd. SEGMENT Bakery Products PRODUCTS Biscuits, flavoured milk, dairy whitener, ghee, bread, cake and rusk ABOUT THE COMPANY A leading player in the Indian organised biscuit market with nearly 30% value share The Nusli Wadia group, one of the oldest business houses in India and Groupe Danone, a French multiproducts food company, equally share the 48.5% promoter holding in Britannia Sales of Rs. 14.7 billion in 2004 Closely held listed company with promoters holding at 78.4% of the total share capital. Dabur Foods is a 100 % subsidiary of Dabur India Turnover of US$ 21.45 million in 2004

Dabur India Ltd.

Beverages and Culinary

Hindustan Unilever Ltd. (HUL)

Beverages, Staples, Dairy, Snack Foods

Parle Agro Pvt. Ltd.

Beverages and Bottled Water

Haldiram Snack Foods Marketin g Pvt. Ltd.

Fruit juice, cooking pastes, coconut milk, tomato puree, lemon drink and honey Tea, instant The parent company Unilever holds 51.55% of coffee, biscuits, HULs equity. Unilever is a Fortune 500 transnational, ice creams, which sells foods, home care and personal care brands salt, wheat in about 100 countries worldwide flour (atta), Indias largest fast moving consumer goods instant drinks, company, with leadership in Home & Personal Care soups, jam and products and Foods & Beverages squash HULs brands, are spread across 20 distinct consumer categories, with combined volumes of about 4 million tonnes and sales of US$ 2.17 billion HULs foods segment is at 9%, beverages are at 12% of its businesses Fruit drinks Leading player in the fruit based beverages and mineral segment and the bottled water segment Its flagship product is the fruit based drink Frooti Mango, which has 75% market share Sweets, Major share in the namkeen and snack food namkeens, market in India. Strong presence in northern India syrups, especially in New Delhi 20

MTR Foods Ltd

Snack Foods, Ice creams

crushes, chips and papads Ready-to-eat curries and rice, ready-tocook gravies, frozen foods, ice creams, instant snack and dessert mixes, spices, pickles and papads

Exports to USA, UK, Canada, Australia, Singapore and the UAE Turnover is estimated at US$ 261 million, with the export market accounting for approximately 10% of MTRs total sales An ISO 9002 and HACCP certified company. It is amongst the top five processed food manufacturers in India The company was recently acquired by Orkla, a Norway-based company for US$ 80 million

CHAPTER 3 COMPANY AND PRODUCT PROFILE

21

Mother Dairy New Delhi was set up in 1974 under the Operation Flood Programme, to overcome Delhi's severe milk shortage.. It is now a wholly owned subsidiary of the National Dairy Development Board (NDDB). 3.1 NDDB The NDDB was created in year 1965 so as to endorse, finance and support producerowned and controlled organizations. It was formed with a purpose to strengthen farmer cooperatives and support national policies that were favourable to the growth of such institutions. It was found to replace existing exploitation with empowerment; tradition with modernity and stagnation with growth. Its main aim was to transform dairying into an instrument for development of Indias rural people. 3.1.1 NDDB STRUCTURE NDDB has the following subsidiaries: Indian Immunologicals Ltd., Hyderabad Indian Dairy Machinery Company Ltd., Anand Mother Dairy Fruit & Vegetable Pvt. Ltd., New Delhi 3.2 MOTHER DAIRY FRUIT & VEGETABLE PVT. LTD. : COMPANY PROFILE Mother Dairy Fruit & Vegetable Pvt. Ltd. (MDFV(P)L), New Delhi was incorporated on 24th March, 2000. It deals with the processing, marketing, sales and distribution of milk and milk products, fruit and vegetable and edible oil through a vertically integrated network under the Mother Dairy brand, the Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices and Dhara range of edible oils at a national level through its sales and distribution networks for marketing food items. Mother Dairy sources its entire requirement of liquid milk from dairy cooperatives. Similarly, Mother Dairy sources fruits and vegetables from farmers / growers associations. Mother Dairy also contributes to the cause of oilseeds grower cooperatives that manufacture/ pack the Dhara range of edible oils by undertaking to nationally market all Dhara products. 3.2.1 MISSION 22

It is Mother Dairys constant endeavour to: (a) Ensure that milk producers and farmers regularly and continually receive market prices by offering quality milk, milk products and other food products to consumers at competitive prices. (b) Uphold institutional structures that empower milk producers and farmers through processes that are equitable. 3.2.2 SALES VOLUME The company markets more than 2.2 million litres of milk daily in Delhi and surrounding areas of Western U.P. and Haryana, Mumbai and Hyderabad. Mother Dairy Milk has a market share of 66% in the branded sector in Delhi where it sells 2 million litres of milk daily and undertakes its marketing operations through more than 10,000 retail outlets. There are 780 exclusive outlets of Mother Dairy out of this. The companys unique distribution network of bulk vending booths, retail outlets and mobile units give it a significant competitive advantage. Other than Delhi and NCR, Mother Dairys dairy products are available in the markets of Northern India, Eastern India, Mumbai, & Port Blair. MDFV(P)L plans to be a $1 Billion company by 2010.

3.3 PRODUCT PROFILE Mother Dairy manufactures and markets a wide range of dairy products besides Milk. These include Butter, Dahi, Ghee, Cheese, UHT Milk, Dairy Whitener, Ice Creams, Lassi & Flavoured Milk. The company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL through a chain of 295 owned Fruit and Vegetable shops and more than 20,000 retail outlets in various parts of the country. Mother Dairy has also been marketing the Dhara range of edible oils for the last few years. Today it is a leading brand of edible oils and is available across the country in over 23

2,00,000 outlets. The brand is currently available in the following variants: Refined Vegetable Oil, Refined Soybean Oil, Refined Sunflower Oil, Kachi Ghani Mustard Oil and Filtered Groundnut Oil. Mother Dairy has also launched extra virgin Olive Oil under the Daroliva brand.

3.4 MDFV(P)L STRUCTURE

3.4.1 Strategic Business Units MDFV(P)L has two strategic business units: 1) Dairy and food and 2) Horticulture. Dairy & Food SBU It is further divided into two categories: Products Fresh Milk

The Products Division is responsible for the marketing, sales and distribution of: All dairy products (except fresh milk) under the Mother Dairy brand Dhara range of edible oils. 24

Safal range of food products at a national & international level.

Horticulture SBU It is responsible for marketing, sales and distribution of Fresh Fruit & Vegetables THE STRATEGIC BUSINESS UNITS OF MDFV(P)L

MDFV(P)L

Dairy & Food Produc ts

Safal Products Dhara Edible Oil Ice Creams Butter & Cheese Curd, Lassi & chaach

Horticult ure Fresh Milk

Fresh Milk Packet Loose Fresh Fruit & Vegetabl e

The Products Division of MDFV(P)L has six verticals:

25

 Grocery Chain Products (GCP): The products that can be kept in a room temperature like, ultra heated milk-tetra pack, Dhara Vegetable Oils, Olive Oil and Ghee are catered to. It generates highest revenues. Ice Cream and Frozen Products (IFP): The business operates at -170 C. The products are ice creams and Safal products like Frozen Peas, Frozen Corn and Hot Snacks. Modern Retail Format (MRF): This verticals deals with the modern retail markets like hyper markets. The primary function of this vertical is to do Channel Management and Shelf management. It ensures availability of Mother Dairy products in all the hyper markets like Reliance stores, Big Bazar, Subhiksha etc. Mother Dairy Food Services (MFS): This vertical explores the consumption opportunities out of home. It targets varied range of institutional customers. Private institutions like star hotels, schools, office canteens, air caterers and hospitals. Government institutions like Paramilitary forces, CSD, Hospitals, Airports, ITDC, IRCTC, Pragati Maidan. Butter & Cheese (BC): Here the business operates at 40 C. The products are Butter and Cheese which constitute to a major business. The shelf life of the products is from 6 months to 9 months. FRESH: The business operates at 40 C. The shelf life of the products is low. It deals with the products like Chaach, Dahi and Lassi.

3.5 SALES DEPARTMENT HIERARCHY 26

27

CHAPTER 4 LITERATURE SURVEY

28

4.0 MEANING AND NATURE OF TRAINING

Training refers to the imparting of specific skills, abilities and knowledge to an employee. It is an attempt to improve employee performance by increasing an employees ability to perform through learning. Every organization needs to have well trained and experienced people to perform the activities that have to be done. Training also gives the employees a greater job security and an opportunity for advancement. Thus, a skill acquired through training is an asset for the organization as well as the employee. The need for training may arise because of the following reasons: Inadequate job performance Decline in productivity Changes resulting out of job redesigning Changing technology

4.1 TRAINING, EDUCATION AND DEVELOPMENT Training, Education and Development are three terms used interchangeably. However, we can make a distinction among Training, Education and Development. Training is a process of learning a sequence of programmed behavior. It is application of knowledge that intends to improve their performance on current job or prepare them for an intended job. An employee undergoing training is presumed to have had some formal education. No training programme is complete without an element of education. Training is generally offered to operatives. Education, on the other hand, is an understanding of knowledge that intends to develops a logical and rational mind rather than provide definitive answers. The purpose of education is to teach theoretical concepts and develop a vital sense of reasoning and judgment. Development is a process related to training; it involves not only those activities that improve job performance but also those that bring about growth of personality. It provides general knowledge and attitues intended to equip employees to earn promotions and hold greater responsibilities. 29

4.1.1 DISTINCTION BETWEEN TRAINING AND EDUCATION Training Training is Application oriented Imparts specific skills Has a narrow perspective Training is Job Specific Education Education has Theoretical orientation Covers general concepts Has a broad perspective Education is no bar

4.1.2 DIFFERENCE BETWEEN TRAINING AND DEVELOPMENT Training Training involves technical & mechanical operations. Training is presumed to have a formal education. Training needs depend upon lack or deficiency in skills. Training is a narrower concept focused on specific job related skills. Training is concerned with maintaining and improving current job performance, and thus, it has a short-term perspective. Training is aimed at improving job related efficiency and performance. Development Development involves conceptual ideas and mental attitudes. Development is not education dependent. Development depends on personal drive and ambition. Development is a broader concept focused on personality development and general knowledge. Development competence seeks and skills to for develop future

performance, and thus, it has a long-term perspective. Development aims at overall personal effectiveness including job efficiencies.

4.2 IMPORTANCE OF TRAINING & DEVELOPMENT Training is an integral part and corner-stone of sound management, as it makes employees more effective and productive. There is an ever present need of training so that new techniques can be taken advantage of and improvements can be made in the old methods. It benefits the organization and the employees equally. 30

4.2.1 BENEFITS TO THE ORGANIZATION Leads to improved profitability and more positive towards profit orientation Improves the job knowledge and skills Helps people identify with organizational goals and understand and follow Aids in organizational development Aids in increasing productivity and quality of work Develops a sense of responsibility to the organization for being competent Improves morale of the workforce Helps lower costs

organizational policies

4.2.2 BENEFITS TO THE INDIVIDUALS Helps employees adjust to change Helps individuals in making better decisions and in effective problem solving Encourages employees in achieving self-development and self-confidence Increases job satisfaction and recognition Aids the improvement of attitudes, knowledge and skills

4.2.3 BENEFITS IN HUMAN RELATIONS Improves communication between groups and individuals Makes organizational policies, rules and regulations viable Improves morale Improves organizational climate

4.3 INPUTS IN TRAINING AND DEVELOPMENT 31

Skills: Skills imparted during a training programme maybe basic operational skills, motor and psychomotor skills, interpersonal or people skills etc. Knowledge: Knowledge is given emphasis in a development programme. It includes knowledge about business environment, management principles, human relations, specific industry analysis etc. useful for better management. Attitudinal Changes: Attitude represents feelings and beliefs of individuals towards others. Negative attitudes need to be converted to positive attitudes so that employees feel committed to the organization, are motivated for better performance and derive satisfaction from their jobs and the work environment. Education: It aims at teaching theoretical concepts & develop a sense of reasoning and judgement. Education is more important for managers and executives than for lowercadre workers. Ethics: An ethical orientation is important as it creates a credible public image, helps people in identifying with the organization and in better decision making in the interest of everyone. Decision Making & Problem Solving Skills: They focus on methods and techniques that help define and structure problems, collect and analyse information, generate alternative solutions and take appropriate decisions

4.4 THE T 32

The Sales Force was segregated as per their divisions for this stage. 6.3 DATA COLLECTION TECHNIQUES AND TOOLS Primary Data collection was done using three tools: Structured Interviews: These were used to identify the KSAs. Ranking: This was used to prioritise the KSAs identified.

Rating Scales: Ratings were given to identify the skills gap and hence the training needs. Secondary Data: Company annexure, Websites, Books, Job Descriptions. 6.4 TOOLS FOR ANALYSIS These tools were selected so as to find a single value for ratings of each skill. 6.4.1 MODE Mode is that value which occurs the maximum number of times i.e. has the maximum frequency. It represents a majority of the total population. 6.4.2 ARITHMETIC MEAN It is the value obtained by adding together all the observations & by dividing the total by the number of observations. Formula: X= X1+X2+X3+..XN N It represents the average rating for each skill.

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CHAPTER 6 DATA ANALYSIS AND INTERPRETATION

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6.1 KSA IDENTIFICATION A list of KSAs was identified as important to perform a sales executives job after conducting the interviews. These KSAs were prioritised by the National Sales Managers of each of the six verticals in the order of their importance as a competency to perform effective sales. 6.1.1 ICECREAM & FROZEN PRODUCTS KSAs Total number of people interviewed: 19 NUMBER OF PEOPLE WHO IDENTIFIED THE SKILL 7 6 10 7 9 16 5 7 8 6 3 3

KSAs Analytical Abilities Claim Handling Communication Complaint Handling Computer Skills & Reporting Systems of the organization Distribution Management Follow Up Skills Market Expansion Monitoring & Training PSMs & DSMs/ Man Management Organizational Policies & Processes Product Knowledge Selling Skills

PERCENTAGE OF TOTAL RESPONSES 36.8% 31.6% 52.6% 36.8% 47.4% 84.2% 26.3% 36.8% 42.1% 31.6% 15.8% 15.8%

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KSAs AS PERCENTAGE OF TOTAL RESPONSES BY THE EXECUTIVES AND THEIR SENIORS

IFP KSA LIST PRIORITISED BY THE NATIONAL SALES MANAGER

KSA
Selling Skills Distribution Management Follow Up Skills Monitoring & Training PSMs & DSMs/ Man Management Claim Handling Market Expansion Complaint Handling Analytical Abilities Communication Organizational Policies & Processes Computer Skills & Reporting Systems of the organization 6.1.2 GROCERY CHAIN PRODUCTS KSAs 36

Priority
1 2 3 4 5 6 7 8 9 10 11

Total number of people interviewed: 33 KSAs Analytical Abilities Claim Handling Communication Complaint Handling Computer Skills & Reporting Systems of the organization Distribution Management Follow Up Skills Interpersonal Skills Market Knowledge Modern Trade Monitoring & Training PSMs & DSMs/ Man Management Organizational Policies & Processes Presentation/ Personality Product Knowledge Selling Skills Negotiation NUMBER OF PEOPLE WHO IDENTIFIED THE SKILL 4 4 6 5 7 21 7 4 8 3 18 8 5 9 6 5 PERCENTAGE OF TOTAL RESPONSES 24.24% 24.24% 36.36% 15.15% 51.52% 78.79% 39.39% 24.24% 36.36% 9.09% 54.55% 24.24% 15.15% 45.45% 42.42% 15.15%

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KSAs AS PERCENTAGE OF TOTAL RESPONSES BY THE EXECUTIVES AND THEIR SENIORS

GCP KSA LIST PRIORITISED BY THE NATIONAL SALES MANAGER

Skill
Selling Skills Claim Handling Product Knowledge Distribution Management Communication Analytical Abilities Negotiation Presentation/ Personality Follow Up Skills

Priority
1 2 3 4 5 6 7 8 9

6.1.3 BUTTER AND CHEESE KSAs

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KSAs AS PERCENTAGE OF TOTAL RESPONSES BY THE EXECUTIVES AND THEIR SENIORS

BC PRIORITISED LIST

Skill
Distribution Management Selling Skills Planning Communication Monitoring & Training PSMs & DSMs/ Man Management Product Know/ Market Know Follow Up Skills Organizational Policies & Processes

Rank
1 2 3 4 5 6 7 8

6.1.4 MOTHER DAIRY FOOD SERVICES KSAs Total number of people interviewed: 7 39

KSAs Analytical Abilities Claim Handling Communication Complaint Handling Computer Skills & Reporting Systems Distribution Management Interpersonal Skills Market Knowledge Negotiation Organizational Policies & Processes Product Knowledge Selling Skills

NUMBER OF PEOPLE WHO IDENTIFIED THE SKILL 3 3 4 2 2 5 1 4 5 3 5 1

PERCENTAGE OF TOTAL RESPONSES 42.86% 42.86% 57.14% 28.57% 28.57% 71.43% 14.29% 57.14% 71.43% 42.86% 71.43% 14.29%

KSAs AS PERCENTAGE OF TOTAL RESPONSES BY THE EXECUTIVES AND THEIR SENIORS

MFS PRIORITISED LIST

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Skill
Distribution Management Communication Negotiation Selling Skills Analytical Abilities Market Knowledge/ Product Know Organizational Policies & Processes Complaint Handling Claim Handling Computer Skills & Reporting Systems of the organization

Rank
1 2 3 4 5 6 7 8 9 10

6.1.5 MODERN RETAIL FORMAT KSAs Total number of people interviewed: 7 NUMBER OF PEOPLE WHO IDENTIFIED THE SKILL 41 PERCENTAGE OF TOTAL RESPONSES

KSAs

Analytical Abilities Communication Competitors' Knowledge Computer Skills & Reporting Systems of the organization Distribution Management Follow Up Skills Interpersonal Skills Market Knowledge Monitoring & Training PSMs & DSMs/ Man Management Negotiation Product Knowledge Selling Skills Modern Trade Presentation/ Personality

2 2 2 3 5 3 2 3 4 3 2 5 1 1

28.57% 28.57% 28.57% 42.86% 71.43% 42.86% 28.57% 42.86% 57.14% 42.86% 28.57% 71.43% 14.29% 14.29%

Questionnaire for ASMs What skills are required by the JSEs & SEs to perform their job effectively? What additional skills can be imparted for improving their performance? What are their Key responsibilities? Are there areas in which the sales executives might require training? 42

Questionnaire for Sales Executives What is your daily routine? What are your Key Responsibilities? What problems do you often face at work? What do you like doing the best at work? How should the organization support you for better performance? How do you compare yourself with the competitors? What are their advantages over you?

JOB DESCRIPTION A. JOB INFORMATION: Job Holder: Job Title: Jr. Sales Executive, SE

Location: Company: MDIL Function: Butter & Cheese & Beverages, Grade: FRESH, Functional Reporting: ASM / SSE Administrative Reporting: ASM / SSE

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Total Reportees (Direct/ Indirect): 0/1-2

B. MAIN RESPONSIBILITIES: (listed in order of priority) Ensure Sales as per set targets secondary and primary. Distribution Expansion as per annual plan. Ensure supply, coverage, frequency, inventory level and managing the infrastructure. Ensuring adequate merchandising in terms of product visibility and display of POS. Sales Forecasting/ MIS generation. Timely RS claim submission. Ensuring RS infrastructure investment and working as per Company norms. On the job training to the RSSMs Speedy response to competition/ Sales promotional activities. Prompt Market feedback to manager. Control damages and maintaining stock hygiene at RS/ Retail levels Fiscal discipline with respect to RS claims budgets approved & T&E claims.

C. ADDITIONAL/ OCCASIONAL RESPONSIBILITIES: (listed in order of priority) Proper reporting to Manager, regarding PFA related/ sample picking activity in the market.

D. JOB SPECIFICATIONS: Education: Experience: Graduate 1+ Years Negotiation Skills Selling Skills Distribution Management Skills Merchandising

Training:

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Skills/ Abilities:

Assertive Process driven Analytical Good Communication IPR with retailers, distributors, coworkers Follow up skills Willingness to implement / learn

E. SCOPE OF JOB: AREA Volume/ Turnover/ Others (Rs.) Volume/ Turnover/ Others (Units) Profit/ Productivity/ Others (Rs./ Units/ Ratio) Geographical Span of Control TARGET/ MEASURE Average Rs. 8 Rs. 10 Lakhs per annum 70 MT 120 MT or 500 Cases of Beverages To drive Profitability Statements along with variance analysis with Board Approved Budgets Metro : 5 6 Distributors, Non Metro : 5 6 Districts.

JOB DESCRIPTION JOB INFORMATION: Job Holder Company: M.D.I.L Function: MFS Functional Reporting: ASM /SSE Total Reportees (Direct/ Indirect): 0/1-2 Job Title: Junior Executive Location: Grade: Administrative Reporting: ASM/SSE

F. MAIN PURPOSE: (captures essence of the job in brief) To drive institutional sales in the assigned territory, covering various categories of institutions for all the Mother Dairy Products

MAIN RESPONSIBILITIES: (listed in order of priority)

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Achievement of sales targets for different categories of products by building and maintaining trade relations with Key Institutional Accounts through extensive persuasion. Development of institutional Redistribution Stockist (RS) as per the plan. Developing Direct Sales Points at key institutions. Ensuring effective servicing of indirect institutional accounts. Ensure effective customer service to the key accounts in terms of timely delivery, complaint resolution etc. Ensuring maintenance of records with respect to the Assets placed in institutions and escalate technical problems to the BDO. Ensure timely recovery of payments for direct company Accounts.

G. JOB SPECIFICATIONS: Education: Experience: Training: Graduate with professional diploma 3 - 5 years. Communication Skills & Product Knowledge Specialized institutional sales handling skills. Key accounts handling. Developing professional relations with high profile institutional buyers.

Skills/ Abilities:

H. SCOPE OF JOB: AREA Volume/ Turnover/ Others (Rs.) Volume/ Turnover/ Others (Units) Profit/ Productivity/ Others (Rs./ Units/ Ratio) Geographical Span of Control TARGET/ MEASURE 4 5 Crores Average 175 MT Metro / 5 7 Districts

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