Study of product promotion & strategies of United Biscuits Pvt.

Ltd By Mohammad Waseem Asghar PG10-40 Under the guidance of Prof. Simmi Khurana

Integrated Academy of Management and Technology Ghaziabad Summer project submitted July, 2011 in Partial Fulfilment of the Requirements for the Award of Post Graduate Diploma in Management (Recognized by AICTE, Ministry of HRD, Govt. of India)

Objective

Primary Objective : 1. Identify the factors which are important for marketing strategies. 2. Customer awareness about United Biscuits. 3. Identify the areas of improvement of United Biscuits. Secondary Objective : 1. Ensuring adequate availability of stocks at stores. 2. Coordinating with Sales officer & Distributor. 3. Promoting the product at store level.

Introduction of United Biscuits Pvt. Ltd.

United Biscuits was founded in 1948 following the merger of two Scottish family businesses McVitie & Price and MacFarlane Lang. McVitie s was founded in 1830 and 89% of UK households buy McVitie s biscuits. United Biscuits Pvt. Ltd is the UK s leading biscuit manufacturer and No. 2 in snacks. We re the second largest biscuit manufacturer in the Netherlands, France, Belgium and Ireland. Key Markets of United Biscuits are Canada, USA, Sweden, Greece, Italy, Portugal, Middle East, Australia, India and Nigeria. Key Brands of United Biscuits are McVitie s, Fruit & Form, Carr s, Delacre and BN. A US $ 2 billion branded snacks company. Largest producer of biscuits in 1.5 billion tons UK market. Employee strength of over 11,000 people. Baking biscuits since 1850. First Mc Vitie s original digestive baked in 1892. Selling products in over 100 countries.

United Biscuits in India

United Biscuits is world s second largest biscuits manufacturer in the world, and has being importing in India since last 11 years, taking their experience further in manufacturing best quality biscuits & providing value product to the Indian consumers. United Biscuits purchased the plant of Bonn brad (S.S. foods) with the investment of 15-20 crores located at Kala Amb industrial area in Himachal. However in totality UB has already made an investment of 40 crores for this plant and also planning to invest more. UB identified as a market with great potential than it made for way into the Indian market by deciding the production in Himachal Pardesh. UB India today directly and indirectly employees over 1000 people and also plans to continue expanding its presence in the year 2011. Manufacturing facility in Kala Amb- Himachal Prades. UB India has been operational since the beginning of 2010. Head Office at Vasantkunj Delhi.

Promotional Strategies:
United biscuits knows that customers go to its stores to take a good quality of products at at its reasonable price and not because United biscuits is the seconds largest biscuit manufacturer in the world. United biscuits uses many kinds of promotions to keep its biscuits at the top of the industry. Promotion is one of the important elements of marketing mix. The elements of promotion used by United Biscuits

Advertising:
United Biscuits has modernized their advertisements, pamphlets, and website to include nutritional information and addressing diet restrictions but still United Biscuits has had to look for alternative strategies to keep consumers happy. Another promotional strategy United Biscuits uses is the huge investment in sponsorship. This is also a central part of the image building process. Sponsorship in WWE increases awareness of United Biscuits brand. Below the line promotion are used in India through Sales promotion and personal selling but in order to fully exploit advertisement now United Biscuitsand is starting Above the line promotion through mass media to make sure everyone knows of the McVitie s brand. United Biscuits has signed on Bollywood Superstar Bipasha Basu and leading South Indian actor Shriya Saran for endorsing its flagship brand McVitie s in India. The stars will play a pivotal role in enhancing further, the brand s aspirational values, through their association in presenting the brand, products and promotional activities.

Sales Promotion:
A sales promotion strategy is an activity that is designed to help boost the sales of a product or service. Sales promotion strategy used by United Biscuits is a Combination of Push & Pull Strategies: It focuses both on the distributor as well as the consumers, targeting both parties directly. It offers consumer incentives side by side with dealer discounts. Tools used United Biscuits for consumers promotion: 1. Freebies 3. Sample 2. Coupon 4. Extra quantities Tools used United Biscuits for retailers promotion: 1.Price off

Competitors of United Biscuits in India:

The existing market leaders in the Indian biscuit market are 1 Parle 2 - Britannia 3 ITC It is found many products which can be compared with Britannia & Parle Biscuit. As a conclusion I found that particularly in my provided area Mc Vitie s is not really doing well and its performance is on low level. During the field work and after intensive study it was found that main competitor of Mc Vitie s biscuits is: In Ghaziabad the demandof biscuits in the market are ranked as follows. Britannia. 2. Parle. 3. ITC. 4. McVities.

Two Dimensional Perceptual Mapping:

High value proposition
Britannia Parle Mc Vitie s ITC

High Price

Competitive Price

Low Value Proposition

Beat Planning
United Biscuits followed following strategies for the selection of Beat Planning. 1 Company divided a particular are in many Beat such as East Delhi has divided into 50 Beat approx. 2 Each Beat has 40 retailers approx. 3 Company focused those retailers who are good in FMCG business. 4 As per sales volume Beats are divided into category A, B and C. 5 As per sales volume retailers are also divided into category A, B and C. 6 Company mainly focuses A category retailers so that company can increase sales growth and revenue. 7 Company gives special sales promotion offer to A category retailers.

Mc Vitie s Stock availability & Re-order Shelf Stores in Ghaziabad

Research Methodology

 Marketing Research: Quantitative Research  Data: Primary Data: Collected by field work Secondary Data: Collected by books and internet  Research Approach: Survey method  Research Instrument: Questionnaire  Type of Questionnaire: Structured  Type of Questions: Close-ended and open-ended questions  Target Population: Retailers  Sample Size: 100  Sampling Technique: Convenience Sampling  Sample Areas: GhaziabadKavi Nagar, Raj Nagar, Lohiya Nagar, Patel Nagar, Sastri nagar, Chiranjeev Vihar, Dasna Gate, Gandhi Nagar, Nehru Nagar, Sihani Gate, Govind Puram.

1. How did you get to know about Mc Vitie s biscuits?

McVities

News Papers & Magazines 10% T.V Commercials 9% Outdoor Media 0%

Any Other 81%

Interpretation - Survey shows that 10% retailers know Mc Vitie s through News papers & 90% retailers know it through any other sources like POP s, sales man & Customers.

2/A. Rate the Packaging

Packaging
Bad Average Good Very Good Excellent

70 61 62

45 38 30 23 16 9 0 McVities 0 0 0 Britannia 0 0 0 Parle 0 0 ITC

46

Interpretation - For McVitie s packaging 23% retailers said that its average, 61% said good, 16 said very good. For Britannia 30% said good and 60% said very good. For Parle 62% said good and 38% said very good. Which vividly indicates that packaging of McVities is good & competent to Britannia & Parle.

2/B. Rate the Price

Price
Bad Average Good Very Good Excellent

65

64 57 57 36 43 0 0 44

35 0

0 0 0 0 McVitie's Britannia Parle

0 0

ITC

Interpretation 64%, 57% & 44% Retailers said that Britannia, Parle & ITC s price rate are very good respectively where as 35% retailers said the price of McVities are average. For this reason McVities have to work on its price.

2/C. Rate the Quality Quality

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% McVitie's Britannia Parle ITC Excellent Very Good Good Average Bad

Interpretation: 80% & 62% retailers said Britannia & Parle are very good respectively but only 38% said McVities are very good & 13% said average and so McVities have to improve the quality of its biscuits to compete with Britannia & Parle.

2/D. Rate the Quantity Quantity

120

100

80

60

40

20

0 McVitie's Bad Britannia Average Good Very Good Parle Excellent ITC

Interpretation: 64% retailers said Britannia provides very good quantity & 65% said Parle provides very good quantity but 82% said that McVities provide good quantity whether 18% said that McVities provide average quantity in the market.

3. Rank the following according to the customer preference? Customer Preference

1 82 2 3 4 5

56 48 39 32 27 22 17 12 3 3 4 0 McVities-Butter Cookies. 10 11 2 McVities-Cashew Cookies. McVities-Marie. McVities-Chocolate Cream. 10 6 6 18 16 8 9 21 38

McVities Digestive.

Interpretation: McVities Digestive is ranked highest at 82% & McVities Chocolate Cream is ranked lowest at 56%. It indicates that Digestive biscuits are highly preferred by the customers & has good response of sales in the market.

4. Which brand is most demanded by customers? Demand

Mc Vitie s 13%

ITC 21%

Parle 29%

Britannia 37%

Interpretation: In 100 sample shops one shop sales only McVitie s that s there are no competition. Most Demanded biscuits are Britannia 37% followed by Parle 29% and ITC 21%. In some shops demand of two biscuits are same such as Parle and Britannia

5. Special offers & trade schemes provided by McVities to retailers are convincing? Convince

MAYBE

NO Convince

YES

10

20

30

40

50

60

Interpretation: 56% retailers said that offers & trade schemes provided by McVities are convincing but only 35% retailers dislike McVities schemes.

6. The process of distribution, proper supply to retailers & services are?

Very Good, 9 Not Effective, 20 Better, 12

Good, 24 Average, 35

Interpretation: 9% said very good, 12% said better & 24% said good but 35% and 20% said bad & not effective respectively.

7. How many times in a week sales man visit your store? Visits

More than 3-times

3-times Visits 2-times

1-time

10

20

30

40

50

60

70

Interpretation: 26% said that sales man visit once in a week and 69% said twice but 5% said thrice and sales man never visit any store more than thrice in a week.

8. Are you satisfied with the Distributer of McVities? Satisfaction

Yes No

42%

58%

Interpretation: 42% retailers said they are satisfied with the distributer and 58% of them said that they are not satisfied with distributer.

9. In how many days you Re-Order McVities? Re-Order

120

100

80

60

More than 40 Days 30-40 Days 10-29 Days

40

20

0 Digestives Butter Cookies Cashew Cookies Marie Chocolate Cream

Interpretation: 63% said they order McVities Digestive in 10-29 days & 64% said they order McVities Chocolate cream in more than 40 days, which shows that McVities Digestive have good sales & demand in the market but chocolate cream lacks the demand in market.

10. Which type of Plannograame they provide McVitie s in the stores?

Visibility

Daily Single Shelves

Super/ 2 Shelves Visibility

Hyper/ 3 Shelves

10

20

30

40

50

60

Interpretation: 52% retailers said they provide Super-2 shelves for McVities, 33% provide Hyper-3 shelves & 15% provide Daily single shelves to McVities.

11. Which of the following promotional techniques McVities use? Promotional-Schemes

Scratch-Cards Lucky-Draw 0% 0%

Coupons 21%

Extra Quantities 34%

Price-off 14%

Freebies 31%

Interpretation: promotional schemes that for McVities products are used in the market is Extra quanties at 93%, price-off at 39%, Freebies at 87% & Coupons at 57%.

12. Which section of the media shall be employed to promote this product? Media section
100 90 80 70 60 50 Media section 40 30 20 10 0 Print Media Electronic Media Trade show & sampling

Interpretation: 93% of retailers respond to Electronic media, 73% wants Trade show & sampling of the products and 39% support Print media for promotion of McVities products.

13. How satisfied are you?

120

100

Dissatisfied, 27 80

60

Neutral, 54 40

20 Satisfied, 19 0 With the sales growth of McVities this year With sales growth of McVities compared with that With the productivity of your working relationship of your other major suppliers of competitive with McVities field organization this year. products

Interpretation: Retailers said that they are 29%, 16% & 19% only satisfied with the sales growth of McVities this year, with sales growth compared to other competitive products & with productivity of working relationship with McVities field organization this year respectively.

14. Any suggestions for McVities?

o Cookies Biscuit quality of taste should improve. o Packaging of Digestive should improve. o Different variety of biscuit should be more. o Proper advertisement is required. o Package weight is lesser than other biscuits such as Parle and Britannia. o Regularity of sales officers vist should increase. o Before launching any new flavor of biscuit, sample should be distributed. o Replacement and Sales Displays be on time.

Findings

1 Ghaziabad is potential market for McVitie s biscuits. 2 In Ghaziabad Britannia is most demanded biscuits. 3 - Only 9% retailers are aware about McVitie s TV ads. 4 Digestive is most selling biscuits. In 80% retail stores digestive sale is more than McVitie s other biscuits. 5 Sales Men cover 70% retail stores within 7 days. 6 McVitie s biscuits supply is good only at 45% retail store. 7 - 42% retailers are satisfied with the distributer. 8 30% retailers are not aware about McVitie s promotional offers. 9 McVitie s price is higher than other competitors. 10 Retailers need different size of package and varieties of biscuits also.

Limitations

 Area Survey is based on Ghaziabad City s retailers.  Sample Size, I had only 100 sample size for the survey which is less for Ghaziabad City.  While collection of the data many retailers were unwilling to fill the questionnaire.  Lack of proper experience on the part of the researcher in conducting such studies in the past.  The time period for carrying out the research was short as a result of which many facts have been left unexplored.

Recommendations
 Some places distributors not able to cover his particular area. That should be improved.  Small pack of Rs. 5/- also should be in the market.  Always collect the views of retailers. It gives psychological effect on the retailers about care ness by manufacturing company.  Proper supply chain should be so that biscuits can be supply on time and reduce stock out problem.  More focus A and B category of retailers rather than wasting time and money on C category retailers.  Focus more on advertising and sales promotion.  Give proper training to sales men about the selling techniques.

Bibliography

www.unitedbiscuits.com www.mcvities.com http://bakerybazar.blogspot.com/2011/04/united-biscuits-rope-in-movie-stars-as.html http://bakerybazar.blogspot.com/2010/03/united-biscuits-mcvities-penguin-to.html Product & Brand Management by Prof. U.C. Mathur Product Promotion by John J. Burnett Marketing Research by H.W. Boyd, Jr. R. Westfall and Stanley F. Stasch Marketing Research by Naresh K. Malhotra

Appendix

1. Questionnaire used for Customer Awareness of United Biscuits. 2. Questionnaire for Retailers.