A

PROJECT REPORT

ON

MARKETING STRATEGIES TO

IMPROVE MARKET SHARE OF

ATOP

IN AHMEDABAD

UNDERTAKEN ATATOP FOOD PRODUCTS

SUBMITTED

BY:

NITESH

CHAUDHARI

(07MBA04)

INDUS INSTITUTE OF TECHNOLOGY & ENGINEERING

1

2008

2

3

STUDENT DECLARATION

I am NITESH CHAUDHARI; MBA 2 n d SEM specializing in Marketing.

I declare that the project work presented in this report is my own work

and has been carried out and accomplished under the supervision and

guidance of FACULTY GUIDE Mr. Visal Goel

This project report has not been previously submitted to any other university or organization for any other examination.

Date:

Place: AHMEDABAD

Yours faithfully,

NITESH CHAUDHARI

4

SR.NO CONTENTS PAGE-NO

1

234

PREFACEACKNOWLEDGEMENTEXECUTIVE SUMMARY

PART-A

INVENTION OF POTATOES CHIPS& NAMKEENABOUT SNACKS INDUTRYHISTORY OF COMPANYCOMPANY PROFILE

678

11121920

567891011

1213141516171819

ORGANISATION STRUCTUREPROCESS FLOWPRODUCT PROFILESALES FOROCE MANAGEMENTMARKETING MIXPORTER’S FIVE FORCE ANALYSISSWOT ANALYSIS

PART-B

RESEARCH METHODOLOGYDATA ANALYSISSALES REPRESENTATIVEFINDINGSRECOMMENDATIONSCONCLUSIONBIBLIOGRAPHYANEXTURE

23262939414347

5053656869727476

5

INDEX

PREFACE

True learning is born out of experience and observation and also there is no

alternative to own experience, to learn anything with definite questions and answers.

Theoretical knowledge gives us an insight of how “To Put Things in Action”; working

with company is one of the tools of acquiring practical knowledge, which is an

indispensable part of any management programme like Master of Business

Administration. So, the project training is very important for the student for self-

development and self-expertise.

In highly competitive world of today all the businesses have to be alert and

advance in order to survive in the market and for this, a company has constant look out

for changing trends and technology in the market.

Strategy is the roadmap (a set of moves or steps) which let an organization to

pursue a long term position or goal which it has visualized for future. The effort and

intelligence in utilizing and developing a strategy determines the success of organization.

My main objective and purpose behind the project was to study market factors

leading to decline in sales of ATOP CHIPS and NAMKEENS in AHMEDABAD. What

strategies company should follow to improve its declining market share in

AHMEDABAD? What moves should be taken against competition offered by

companies’ main competitor BALAJI and other players in the market?

The report is presented in simple and professional manner so that any person can read

it easily and understand the content of the report.

6

ACKNOWLEDGEMENT

Training is the first step in the practical field from where one learns how to apply

theoretical principles for practical purpose. To make a project success one needs help,

understanding and co-ordination from all those who are directly or indirectly involved in

this project.

I have no words to elaborate as how much I am indebted to the INDUS INSTITUTE

OF TECHNOLOGY AND ENGINEERING; specially its faculty members like our HOD

Mr. Ashish Joshi and FACULTY Mr. Visal Goel; whose supports and genuine

suggestions enabled me to widen my horizons of knowledge.

I am especially thankful to Mr. Rupesh Patel (General Manager); ATOP FOOD

PRODUCTS who gave me an opportunity to undertake project in ATOP FOOD

PRODUCTS as well as Mr. D.K. Raj (Sales Head) and Mr. Durgesh Kacha (Sales co-

ordinator) whose positive attitude and faith in my ability spurred me to perform well.

I am also grateful to my project guide Mr. Nikul Patel and Mr. Ketan Trivedi

(Marketing Executives) of ATOP FOOD PRODUCTS for their guidance and co-

operation throughout the project.

Last but not least, I sincerely appreciate the inspiration; support and guidance of all

those people who have been instrumental in making this project really successful.

7

EXECUTIVE SUMMARY

ATOP Food Products” is promoted by the group that needs no introduction

i.e. SAMAY group.  Samay Group has always remained front runner, be it an electronic

product or a food products. Samay Group came into existence in 1997 and within a very

short time, it ventured into full-fledged manufacturing of Clocks and Timepiece with

“SAMAY” brand at vast manufacturing unit situated on Morbi-Rajkot Highway, Gujarat,

India, sprawled over 40 acres of land. It has not looked back thereafter. Every year a

product is included in his showcase. Now it produced telephones, calculators,

Wristwatches and Energy saving lamps. It has received many National Awards in

different categories. Besides being an ISO 9001-2000 Certified Company.

“ATOP Food Products” produced packed fast-eatables food item. The product

range will be consistent and competent compared to any other national brand of its

category, starting with Potato Chips, Namkeens and Sweets indifferent test and flavors.

We manufactured food item keeping the growing health consciousness. “ATOP FOOD

PRODUCTS” is now proud to be India's first "International Safety Standard Measured"

an ISO 22000:2005 certified company.

                    The product range will be consistent and competent compared to any

national brand of its category. Starting with Potato Chips, Namkeens, Extruded Foods,

and Pallet Foods in different tastes & flavors. Since the company is concentrating on the

quality food product with low-fat, the entire process of manufacturing will be completely

hygienic and health-friendly. Keeping the growing health consciousness and tendency

towards Ayurveda and Herbal concepts, Chywanprash, pickles and other food products

like confectioneries will be added.

This report is a study of market factors leading to decline in sales of Wafers and

Namkeens and strategies to improve market share of Wafers and Namkeens in

8

Ahmedabad. The other main objectives of study are to measure Atop’s distribution

effectiveness in Ahmedabad, retailer’s perception and sales team motivation.

To serve all the objectives of project a market research was conducted. The design

of research is conclusive (research design) which includes survey method (questionnaire)

to collect information from retailers. This report also gives brief introduction of ATOP

FOOD PRODUCTS and it also highlights the key factors and structure of snacks

industry.

9

10

INVENTION OF POTATO CHIPS AND NAMKEEN

While much of history comprises many people doing singular things, in certain

cases one or two people seem to do an awful lot. Some days, it seems that everything we

enjoy was invented by the ancient Chinese and/or abetted by Thomas Jefferson. Thus, we

have Thomas Jefferson perfecting ice cream recipes (originally created, as fruit ice by the

Chinese), Jefferson returning from Europe with the first pasta machine (pasta, too,

invented by the Chinese), and at the same time bringing the recipe for French fries, called

“potatoes fried in the French manner” (as far as we know, the Chinese have had

absolutely nothing to do with the potato).

From that elegant dining room in Monticello in 1789, French-style fried potatoes

spread quickly and far. The style of the time was a thick-cut fry and not the slender

julienne frites of today.

According to the Snack Food Association, the potato chip was born a generation

later, on August 24, 1853 in another elegant dining room: this one, at the fashionable

Moon Lake Lodge in Saratoga, New York. A testy older diner, Commodore Cornelius

Vanderbilt*, sent his food back to the kitchen, complaining that the fried potatoes were

not sliced thin enough and were too soggy.

11

ABOUT SNACKS INDUSTRY

The snack food industry in market-driven societies such as the United States

generates billions of dollars in revenue each year. The market for processed snack foods

is enormous, and a number of large corporations compete rigorously to capture larger

shares of the snack food market. Consequently, heavy promotions are used to convince

consumers to buy snack foods. Processed snack foods are advertised far more than

regular nutritional foods (such as fruit, vegetables, meat, dairy products), and the flashiest

TV commercials and advertising campaigns are often designed to sell these products.

The global potato chips market generated total revenues of 18.7 billion

dollars in 2007. This accounted for 35.5% of the total savory snacks market in that year

(52.67 billion dollars).

Snacks Industry in India

The snack food market in India is valued at Rs. 1530 crore and is one of the

largest markets in the world, out of which potato chips holds the major market share of

around 85%. Big players like McCain Smiles and NP Foods have also entered into Indian

potato snack industry in 2005.It is one of the largest snack markets in the Asia-Pacific

region

Products covered

Potato chips

Savory snacks

Snack nuts

Popcorn

French fries

12

There are many players in Indian snacks industry; especially in Chips and

Namkeen. As the market of branded snacks is growing at 14% and the margin of this

sector is also high there would be many players would be entering into this sector. Frito-

lays, Bingo, Haldiram and BikanerWala are the national players. Frito-lays command a

market share of 45%, Haldiram 27%, Bingo (ITC) 16% and remaining 12% is covered by

other players like Balaji etc...

To remain the market leader lays with its product kurkure started mass advertising

and campaigning. The success of the ITC’s bingo was the company’s distribution

network. As ITC’s vast distribution network bingo could reach each and every corner of

the market. Bingo has got it place in retail outlet as well as in the mall also. On the other

hand Frito –lays has found its place in BIG Bazaar.

13

National Level Players

Frito-Lay's, 45%

Haldiram, 27%

ITC, 16%

Others, 12%

Frito-Lay's

Haldiram

ITC

Others

India’s pride, Amul also wanted to taste the margin of the snacks. The Amul also

has their brand “MUNCH” in the market. The company is targeting the teenagers &

children.

Snacks Industry in Gujarat

If we are talking about the completion at the state level; there are many players

like Oreva, Atop,Samrat,,Uttam,Real, Susma,Everest, Shayam Sunder and major player

Balaji, which covers nearly 90% of wafers market and 70%of namkeen market. In other

words we can say that Balaji has monopoly in the branded snack in Gujarat. The turnover

of Balaji for wafer production is nearly 300 crore.

As the market is growing with 14 % (CAGR); Morbi based clock manufacturer

companies like “Samay”, “Ajanta”, also plunged into this sector. To break the monopoly

of Balaji, the companies like Oreva & atop is giving more margins to the retailer than

Balaji. In Balaji wafers the retailer gets only 0.75 paisa per packet of 5 Rs whereas Atop

gives 0.85 paisa per packet of 5 rupee. Due to the fluctuation in the price of potatoes and

oil the companies find difficult to maintain the weight of the wafers is being given to the

customers.

14

Wafers market in Gujarat

15

Namkeens market in Gujarat

As Namkeens market doing well in Gujarat, all players focus on it also. It is not much

organized sector in Gujarat because customers buy Namkeens from local Mithaiwalas. In

spite of that many brand names like Balaji, Atop etc are doing well.

16

17

PLANT

18

COMPANY HISTORY

“ATOP Food Products” is promoted by the group that needs no introduction

i.e. SAMAY group.  Samay Group has always remained front runner, be it an electronic

product or a food products. Samay Group came into existence in 1997 and within a very

short time, it ventured into full-fledged manufacturing of Clocks and Timepiece with

“SAMAY” brand at vast manufacturing unit situated on Morbi-Rajkot Highway, Gujarat,

India, sprawled over 40 acres of land. It has looked back thereafter. Every year a product

is included in his showcase. Now it produced telephones, calculators, Wristwatches and

Energy saving lamps. It has received many National Awards in different categories.

Besides being an ISO 9001-2000 Certified Company, it has also received ISO 14001

Certification.  To fulfill the growing needs and to add more economy to the product-

prices, Samay has also spread its wings to another state by establishing additional

manufacturing facility in Himachal Pradesh, India.

We (“ATOP Food Products”) produced packed fast-eatables food item. The

product range will be consistent and competent compared to any other national brand of

its category, starting with Potato Chips, Namkeens and Sweets indifferent test and

flavors. We manufactured food item keeping the growing health consciousness. “ATOP

FOOD PRODUCTS” is now proud to be India's first "International Safety Standard

Measured" an ISO 22000:2005 certified company. We are rated by D&B (D_U_N_S

Number 92 - 422 - 0697).

ATOP FOOD PRODUCTS is the first food product company to be certified under

ISO 22000 international safety standard in India, catering globally with a comprehensive

range of premium quality snacks such as potato chips, Namkeens, extruded foods and the

like.

ATOP Food Products is a renowned company, established in the year 2005 and

catering to the globally flourishing food market. Our "Samay" company is certified with

19

ISO 9001:2000 quality accreditation along with ISO 14001 certification as our

achievement.

COMPANY PROFILE

Business Type: Exporter , Manufacturer , Importer

Capital in Rupees: Rs. 40 lakh

Export Percentage: 5%

Import Percentage: 45%

Primary

Competitive Advantages:

Tasty and nutritious products

International standards of hygiene and freshness

 

No of Staff: 202

Year of Establishment: 2005

Export Markets: Worldwide

Import Markets: China

OEM Service Provided: Yes

No of Engineers: 5

Memberships: Food Products Association

Product Range: Potato Chips in different Flavours

Banana Mari Wafers

Shing Bhujia

Tan Tan Mixtures

Ratlami Sev

Khatta Mitha Namkeen

Aloo Sev

Mung Dal Namkeen

Channa Dal Namkeen

20

Masala Sev

Quality assurance

ATOP Food Products strives towards perfection through Total Quality

Management. Our state-of-the-art quality system has been awarded ISO 22000

certification. The products of our collection meet the international standards of hygiene

and freshness. As a revolutionary company, we are bringing in innovative strategies in

advanced and flexible production systems, product development, quality assurance and

logistics support that have empowered us to share our benefits with the business partners.

In order to ensure good quality of the products, we procure the raw materials like oil,

pulses, flour, etc. from reliable producers and employ skilled professionals who have a

good sense of purity, flavor, and color – measurements for quality of our food products.

Infrastructure

ATOP Food Products has incorporated all the latest technology machines so that our

range can retain its taste and freshness for a longer time period. In order to ensure the

best quality products, we have installed the World's No.1 technology production line

with current production capacity of Potato Chips (500 kgs. /hr.), Namkeens (1000

kgs. /hr.), Extruder Snacks- Kurkure (750 kgs. /hr.) and Sonpapdi- Sweet (500 kgs.

/hr.).

We make sure that the freshness of these products is preserved in each pack, with

front-line packaging machineries used for complete packaging solutions. It also includes

solvent-less nitrogen packaging- the latest technology in conformance to the international

standards. In India, our company has for the first time adopted the Safe-line Metal

Detector Technology on complete packaging line so as to assure absolutely metal-particle

free products.

21

TECHNOLOGY

We always believe in latest technology, but there is no compromise in quality. We

have one of the world's best fully automatic production lines, with packaging facility. It

has the Safe-Line Metal Detector Line for packaging line. Atop has incorporated all the

latest technology machines, so that the product can retain its taste and freshness for

longer time

Control Panel Chips Line Packing Machine

Packing Machine Laboratory

22

23

ORGANISATION STRUCTURE

24

Managing Director (MD)

General Manager (GM)

Head of Marketing (HOM)

Area Sales Officer

CHAIRMAN

Sales Officer

Trainee

The Chairman of the company is at the top of the hierarchy.

Managing Director (MD) is at the next level of the Chairman.

General Manager (GM) is at the next level of Managing Director (MD).

All the functional divisions (finance, QA, HR) are in the hand of General

Manager (GM)

Head of Marketing (HOM) is the next to the General Manager and handle all

functions regarding marketing like Sales, advertisement, Logistics, promotion

etc…

Area Sales Officer (ASO) is next to Marketing Head.

Sales Officer is the last in the management hierarchy

At last Trainee

25

PROCESS FLOW

Ingredients

Dough Mixing

Forming Extrusion

Frying

Inspection

Flavouring

Cooling

Packaging

The ManufacturingProcess

When the potatoes arrive at the plant, they are examined and

tasted for quality. A half dozen or so buckets are randomly

filled. Some are punched with holes in their cores so that they

can be tracked through the cooking process. The potatoes are

26

examined for green edges and blemishes. The pile of defective

potatoes is weighed; if the weight exceeds a company's preset

allowance, the entire truckload can be rejected.

The potatoes move along a conveyer belt to the various stages of

manufacturing. The conveyer belts are powered by gentle

vibrations to keep breakage to a minimum.

The potatoes are loaded into a vertical helical screw conveyer

which allows stones to fall to the bottom and pushes the

potatoes up to a conveyer belt to the automatic peeling

machine. After they have been peeled, the potatoes are washed

with cold water.

The potatoes pass through a revolving presser that cuts them

into paper-thin slices, between (1.7-1.85 mm) in thickness.

Straight blades produce regular chips while rippled blades

produce ridged potato chips.

The slices fall into a second cold-water wash that removes the

starch released when the potatoes are cut. Some manufacturers,

who market their chips as natural, do not wash the starch off

the potatoes.

If the potatoes need to be chemically treated to enhance their

color, it is done at this stage. The potato slices are immersed in a

solution that has been adjusted for pH, hardness, and mineral content

COOLING AND STORING

At the end of the trough, a wire mesh belt pulls out the hot

chips. As the chips move along the mesh conveyer belt, excess

oil is drained off and the chips begin to cool. They then move

under an optical sorter that picks out any burnt slices and

removes them with puffs of air.

27

PACKING AND DESPECTH

The chips are conveyed to a packaging machine with a scale. As

the pre-set weight of chips is measured, a metal detector checks

the chips once more for any foreign matter such as metal pieces

that could have come with the potatoes or been picked up in the

frying process.

The bags flow down from a roll. A central processing unit (CPU)

code on the bag tells the machine how many chips should be

released into the bag. As the bag forms, (heat seals the top of

the filled bag and seals the bottom of the next bag

simultaneously) gates open and allow the proper amount of

chips to fall into the bag.

The filling process must be accomplished without letting an

overabundance of air into the bag, while also preventing the

chips from breaking. Many manufacturers use nitrogen to fill

the space in the bags. The sealed bags are conveyed to a

collator and hand-packed into cartons.

Company packs potato chips of various sizes. The chips flow

down a chute into the cans. Workers weigh each can, make any

necessary adjustments, and attach a top to the can.

Quality Control

Taste samples are made from each batch throughout the

manufacturing process, usually at a rate of once per hour. The

tasters check the chips for salt, seasoning, moisture, color, and

overall flavor. Color is compared to charts that show acceptable

chip colors.

Preventing breakage is a primary goal for potato chip

manufacturers. Company have installed safeguards at various

points in the manufacturing process to decrease the chances for

breakage. The heights that chips fall from conveyer belts to

28

fryers have been decreased. Plastic conveyer belts have been

replaced with wide mesh stainless steel belts. These allow only

the larger chips to travel to the fryers and the smaller potato

slivers to fall through the mesh.

Byproducts/Waste

Rejected potatoes and peelings are sent to farms to be used as

animal feed. The starch that is removed in the rinsing process is

sold to a starch processor.

29

VALUE ADDED PRODUCTS

30

Chips

TOMATO TOP

Ingredients:

Natural Potato, Iodized Salt, Edible Oil, Sugar & Spices and Condiments Added Flavour.

Available in : Rs.5/-, Rs. 10/-

SIMPLY SALTED

Ingredients:

Natural Potato, Iodized Salt & Edible Oil.

Available in : Rs.5/-, Rs. 10/-

MIRCH MASALA

Ingredients:

31

Natural Potato, Iodized Salt, Edible Oil, Sugar & Spices and Condiments Added Flavour.

Available in : Rs.5/-, Rs. 10/-

HOT GARLIC

Ingredients:

Natural Potato, Iodized Salt, Edible Oil, Sugar & Spices and Condiments Added Flavour.

Available in : Rs.5/-, Rs. 10/-

CHAT MASALA

Ingredients:

Natural Potato, Iodized Salt, Edible Oil, Sugar & Spices and Condiments Added Flavour.

Available in : Rs.5/-, Rs. 10/-

32

BANANA MARI

Ingredients:

Natural Banana, Iodized Salt, Edible Oil & Spices and Condiments Added Flavour.

Available in : Rs.5/-

Namkeens

FARALI CHOEVDO

Ingredients:

Natural Potatoes, Peanut Splits, Edible Oil, Sugar Powder, Chili Powder, Iodized Salt,

Spices and Condiments.

Available in : Rs.5/-, Rs. 10/-

GANTHIA

Ingredients:

Gram Flour, Black Pepper, Iodized Salt, Edible Oil and Ajowan.

Available in : Rs.5/-, Rs. 10/-

33

ALOO SEV

Ingredients:

Potato Powder, Gram Flour, Edible Oil, Starch, Chilly Powder, Mint Oil, Iodized Salt,

Spices and Condiments.

Available in : Rs.2/-,Rs.5/-, Rs. 10/-

DRY FRUIT FARALI CHEVDO

Ingredients:

Natural Potatoes, Peanut Splits, Edible Oil, Sugar Powder, Chili Powder, Iodized Salt &

Dry Fruit.

Available in : Rs.5/-

34

KHATTA MEETHA

Ingredients:

Gram Flour, Rice Flexes, Split Gram, Sago, Edible Oil, Peanut, Green Peas, Lentils, Mix

Spices, Sugar & Citric Acid.

Available in : Rs.5/-, Rs. 10/-

MIXTURE

Ingredients:

Rice Flakes, Corn flakes, Peas, Green Gram, Peanut Splits, Gram Splits, Gram Flour,

Sugar Powder, Edible Oil, Chilly Powder, Curry Leaves, Sesame Seeds, Coriander,

Black Pepper, Cumin Seeds, Ajowan, Iodized Salt, Spices & Condiments.

Available in : Re.1/-,Rs.5/-, Rs. 10/-

RATLAMI

Ingredients:

Gram Flour, Iodized Salt, Edible Oil, Math Beans Flour, Chilly Powder, Spices and

Condiments.

35

Available in : Re.1/-, Rs.2/-,Rs.5/-, Rs. 10/-

SHING BHUJIA

Ingredients:

Graded Peanuts, Gram Flour, Iodized Salt, Edible Oil, Black Gram Flour, Chilly Powder,

Spices and Condiments.

Available in : Re1/-, Rs.2/-,Rs.5/-, Rs. 10/-

MOONG DAL

Ingredients:

Moong Lentil Splits, Iodized Salt, Edible Oil.

Available in : Re1/-, Rs.2/-,Rs.3/-, Rs.5/-, Rs. 10/-

36

CHANA DAL

Ingredients:

Split Grams, Iodized Salt, Edible Oil, Spices & Condiments.

Available in : Re1/-, Rs.2/-,Rs.3/-, Rs.5/-, Rs. 10/-

Chatpatta (Kurkure)

TANGI TOMATO

Ingredients:

37

Rice Meal, Corn Meal, Gram Flour, Iodized Salt, Edible Oil, Spices and Condiments

contain Added Flavour.

Available in : Rs. 5/-

MAST MASALA

Ingredients:

Rice Meal, Corn Meal, Gram Flour, Iodized Salt, Edible Oil, Spices and Condiments

contain Added Flavours.

Available in : Rs. 3/-, Rs.5/-, Rs. 10/-

GREEN CHUTNEY

Ingredients:

Rice Meal, Corn Meal, Gram Flour, Iodized Salt, Edible Oil, Spices and Condiments

contain Added Flavours.

Available in : Rs. 5/-

SWEETS

38

SOANPAPDI

Ingredients:

Sugar, Bengal Gram Flour, Wheat Flour, Peanut Oil, Hydrogenated Vegetable Fat,

Cardamom, Pistachio, Almond.

Available in : Rs. 30/-

39

SALES FORCE MANAGEMENT

Sales team ensures that the ATOP products are available to the customer

whenever and wherever required.

Sales team is responsible to achieve seasonal and periodical targets.

To exploit all periodical sales promotion and ensure that objectives are achieved.

Sales team is responsible to minimize outstanding and ensure prompt

collection.

Sales team should ensure development and training of distributors and sales

officers.

Sales team should properly store and rotate the stock.

40

They should communicate important and usual competitive activities to the

management.

Solve customer query promptly and correctly.

To attend meeting, conferences, training courses, and makes constructive

contribution.

Report and general information should be collected, which may be of interest to

the company and to its business.

Carefully select distributors, constant performance reviews and recommendations

to top management of the company for any action to be taken.

MARKETING MIX (4Ps)

Following four P's are the parameters that the marketing manager can control, subject to the internal and external constraints of the marketing environment. The goal is to make decisions that center the four P's on the customers in the target market in order to create perceived value and generate a positive response.

o Product

o Price

o Place

o Promotion

ATOP FOOD PRODUCTS is sensitive to provide its services to customers and it focuses on its product mix to satisfy the customers’ needs and wants.

Marketing mix

41

Product:

ATOP FOOD PRODUCTS having 17 products in their product portfolio with different varieties and taste depending on the demand of customers in which quality is important factor for ATOP. ATOP FOOD PRODUCTS launches new products constantly according to customers’ needs. To know the customers taste and preferences they made surveys frequently to know what customers want and what customer like to eat. ATOP FOOD PRODUCTS mainly focuses on customers’ tests and preferences because customers are the uncrowned king of the market and they are decided the future of the any product in the market.

All Products of the ATOP are easily available in the market and they share near to 6 % market of their available products.

Price:

ATOP considers the related aspects such as competitors price, cost including production expenses and profit margin, which decide the price

42

of the products. They give customers good quality of product and it means they believe in customer satisfaction and quality of the product not on profit of company.

Place:

ATOP provides its products to different places with the help of strong and powerful distribution network. They almost cover whole Gujarat and their products easily available at any place of Gujarat, Maharastra and Haydrabad.

Promotion:

ATOP promotes its products by personal selling, advertisement with light boards, banners, wall painting, gifts, stickers etc.

43

FIVE FORCES MODEL

Industry Competitors:

There is very though competition in this sector. As major player Balaji is considered

to the most competitive among all the players, it is the player which has covered

almost the whole t market in Gujarat. The market leader Balaji have 90% market

share in Chips and 70% share in Namkeens also. Many other competitors like Uttam,

Sushma, Real, Everest, Shayam sundar, Samrat are also there in the present market

The other side of competition can be measure on the basis of profit margin of

retailers.

44

Potential

Entrants

E

Suppliers

Substitutes

For example:

Though Atop gives 20% margin on 5 rupee packet of Chips, retailers

prefer to sell Balaji because Balaji gives 15% margin but its turnover ratio of

product s is 2 to 3 times higher than Atop.

Fresh stock (Inventory Turnover) is very important in the industry because whole

game rotates around it. Those who can provide better fresh stock can capture more

market share. Because of in food industry freshness of good is main reason to acquire

market.

Competitions generally rely on Fresh stock, Packaging, Margin & Credit to the

Retailers, Price, and Promotion.

Each and every competitor wants it products to be available at every nook and corner.

Differentiation is generally done on the basis of packaging and attributes like Freshness,

Healthiness, and Convenience etc. are added.

Bargaining Power of Buyers:

Here in this sector, we should consider the bargaining power of the retailers.

Retailers ask for more schemes from small players because consumers prefer Balaji chips

as well as Namkeens so retailers have high turnover ratio from strong brand Balaji. Many

local players prefer to give schemes to retailers and do business on credit for 8 to 10 days.

If they do not give such schemes or credit many retailers are not ready to sell their

products.

Bargaining power of Suppliers:

45

Here in this sector bargaining power of suppliers play very important role. There

are many players in the market so suppliers have wide range of options. The wafers

market is mainly based on Potato suppliers. Giant companies like McCain purchase

potatoes from suppliers in huge quantity and give good price also. Sometimes small

players cannot afford it so it affects on pricing policy of the company.

Threat of substitutes:

This is the major threat, which lies in the industry.

Products are not close substitutes of each other. But still it is important for the

companies maintain a proper differentiation strategy by keeping the track of

consumer preferences in mind.

Continuous change on the basis of attributes like Price, Promotion, Packaging, and

Convenience etc is observed.

POP’S become very important factor because visibility is the major factor, which

determines the ultimate sales. Companies pay extra for shelf space of their desire to

improve visibility of their product.

Potential Entrant:

It is not so difficult for smaller player to enter in to the market as there are no

major entry barriers.

To maintain potentiality, a company should have wide network and huge

investment to start manufacturing unit.

But only threat is stiff competition a new entrant has to face from the giant companies

like Balaji.

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Any new entrant has to spend lot of money on advertisement to influence the

consumers to buy the products.

Again fresh stock is very important to have impact in the mind of consumers.

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SWOT ANALYSIS

Strengths :

Adequate demand in the market.

Reasonable margin available.

Flexibility of Product Mix

Availability of raw material

Expertise and technical capabilities in production of snack products.

Weaknesses :

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Logistics of procurement

Problematic distribution

Competition

Opportunities :

Value addition

Export potential

Threats :

Fluctuation in prices of raw materials

New entrance of big players and also local players

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RESEARCH PROCESS

Problem Definition:

How to improve market share of ATOP in Ahmedabad?

Research Objectives:

To find out ways and strategies to improve market share of ATOP in

Ahmedabad

To study the distribution effectiveness in Ahmedabad

To study Retailers and Consumers Behaviors & Satisfactions.

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To Study Sales Team Motivation, Preferences, Satisfaction.

Research Design:

Descriptive research design

Primary Data Collection:

Survey method for primary data collection which include

- Questionnaire method (Retailers)

- Observation method

Secondary Data Collection:

- Data also collected from web- Surfing at Internet site

- Subject related books also referred.

- Newspapers like Times of India, Economic Times were also

referred.

Targeted population – Retailers selling Atop products and consumers in

Ahmedabad.

Sample size

- 100 retail shops were covered from surrounding areas of

Ahmedabad.

Analysis of data:

General Data Analysis.

Graphs, charts are used for the purpose of analysis.

Findings & conclusions:

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It will based on

Questionnaire filled up.

Interpretation of Collected Data.

Data analysis.

Research facts.

Secondary data.

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SAMPLE SIZE- 100 RETAILERS IN AHMEDABAD

NUMBER OF RETAILERS SELLING BRANDED AND NON-BRANDED

WAFERS AND NAMKEENS

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Type of wafers and

Namkeens

Number of retailers

Branded 81

Non-branded 19

INTERPRETATION: Consumers prefer branded Wafers and Namkeens; it

concludes non branded Wafers and Namkeens are not the problem for ATOP food.

NUMBER OF RETAILERS STOCKING ATOP WAFER AND

NAMKEEN AND OTHER BRANDS

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INTERPRETATION: Atop has its own market but comparatively well than market

leader Balaji. So atop has to reposition its brand.

VARIETY OF BRANDS STOCKED BY RETAILERS

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Brand Percentage of retailers

ATOP 6%

Balaji 70%

Others 24%

INTERPRETATION: Retailers stocks different varieties of brands for consumer

preference. Atop has average availability among them.

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Brand Percentage of retailers

Atop 6%

Balaji 70%

Frito lay 6%

Samrat 8%

Real 4%

Bingo 3%

Everest 3%

WHY RETAILERS SELL ATOP WAFERS AND NAMKEEN?

INTERPRETATION: All retailers have different perspectives regarding Atop

products. A company should concentrate on the retailers whose ask for fresh stocks.

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Factors Percentage of retailers

Fresh stock 5%

Margin 35%

Credit 27%

Brand 6%

Market visit 20%

Services 7%

RETAILERS PERCEPTION TOWARDS BRAND AWARENESS

INTERPRETATION: Retailers have good awareness regarding Atop Namkeens

than its wafers. Especially loose namkeen is doing well in the market.

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Brand Percentage of retailers

Excellent Good Poor

Atop Namkeens 11% 49% 40%

Atop wafers 4% 25% 71%

RETAILERS PERCEPTION TOWARDS MARKET VISIT

INTERPRETATION: ATOP visits market very frequently than other competitors

but not better than BALAJI; the market leader. But market visit is not important because

if there is not enough stock and Sales officer goes for market visit, it does not matter

more for a company.

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Brand Percentage of retailers

Excellent Good Poor

Atop 20% 53% 27%

Balaji 68% 30% 2%

Others 32% 40% 28%

RETAILER’S PERCEPTION TOWARDS SERVICES

INTERPRETATION: ATOP do not provide good service to the retailers than any

other companies available in the market especially in the case of stock delivery.

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Brand Percentage of retailers

Excellent Good Poor

Atop 10% 26% 64%

Balaji 74% 18% 8%

Others 26% 52% 22%

PRICE COMPARISON OF ATOP WAFERS AND NAMKEENS AND

OTHERS

Generally all the players in the snacks industry have not big different in the price. But

we can compare quantity of the different products in different packet.

Suppose Balaji gives 25gm in 5 rupee whereas Atop gives 20gm in 5 rupee.

Thus Balaji gives more quantity than Atop. So quantity play very important role to

compete with market leader Balaji. If Atop gives equal quantity, it is more affordable to

retailers to sell it.

INTERPRETATION:

A company should provide enough quantity to stay long-term in the market

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MARGIN COMPARISON OF ATOP WITH OTER PLAYERS

INTERPRETATION: Margin provided by ATOP is very good than any other players in the market. So margin is not the problem for ATOP.

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Factors marginRetailers Distributors

Atop 22% 7.50%

Balaji 18% 7%

CREDIT PERIOD ALLOWED TO RETAILERS BY ATOP AND BALAJI

INTERPRETATION: Atop provide enough credit periods to distributors as well as retailers.

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Brand Credit period in days

Atop 10

Balaji 0

D ISTRIBUTION NETWORK

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MANUFACTUREMANUFACTURE

CUSTOMERCUSTOMER RETAILERRETAILER

SUPER STOCKIEST DISTRIBUTER

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SALES REPRESENTATIVE AT ATOP

Sales representatives have the experience of around 8 years in the field of the

sales.

This is a very good sign for the company as they have got very experienced and

efficient sales force, which can do wonders in the field.

As per the conversation with them they have no problem in placing POP’S at the

retail counters.

They use POP’S like:

1. Posters

2. Displays

3. Stickers

4. Banners

According to the sales team following attributes help them in placing the product

at retail counter in the given order:

1. Effective Sales Pitch

2. Schemes

3. POP’S

4. Change in Packaging

According to them the following products of Atop are doing well in market Place:

1. Atop Chatpatta

2. Atop tomato wafers

3. Atop ratlami sev

4. Atop banana wafer

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The only problem is that the product of ATOP’s wafers and namkeen is

considered as old stock compare to its main competitor Balaji so it is difficult to

push product in the Market.

Most of them are not satisfied with their salary structure. This could result in

decrease in motivation of the sales team.

They want company to bring out various incentive schemes for them base on

target.

SALES REPRESENTATIVE AT ATOP

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FINDINGS

A service in terms of replacement of expiry stock is a big problem, which

Retailers are facing.

Problem of old stock i.e. stock with old manufacturing date is a major problem

that ATOP is facing because what retailers feel that the consumers are becoming

more aware of the manufacturing date. They don’t buy products with old

manufacturing date.

The other major issue is air leakage in the packaging.

Retailers are also facing the problem of Claims. A company does not pass their

claim on time.

Sometimes a company does not maintain the size of order, as well as logistic

service is not good.

A company is not providing enough advertisement materials also so they cannot

make customers aware about brand.

A company is also not good at Advertisement campaign

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SUGGESTIONS & RECOMMENDATIONS

Our Research shows that Freshness and Healthiness are most important attributes

in snacks. So that Company should use this and try to position its products as

Fresh and Healthy.

ATOP should increase it inventory turnover ratio to match with its main

competitor.

ATOP should focus on improving its PUSH STRATEGY by providing good

margin, credit period, and promotional schemes, packaging to retailers.

It should also improve its services in terms of clearing expired stock from the

retail outlets.

A company should take care of price of loose namkeen and for this they have to

stabilize it pricing policies.

To penetrate more promptly in the chips market a company should give quantity

at least equal but not less than competitors.

Creative advertisement and promotional strategy has to be thought for the

different products of ATOP

It has to place more POP’s at the retail outlets and in turn try to push the product.

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It can increase its focus on the mega stores like Reliance Mega mart and Big

Bazaar and retail outlets like Subhiksha, More, Reliance fresh etc.. A company

should try to put as much product as they can. They also have to keep in mind the

shelf space while placing the product at these stores.

Attractive schemes should be given to Retailers during off-season also to have the

product visibility all round the year and influence the customer to buy because

visibility leads to temptation.

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CONCLUSION

Atop is doing well in the some areas of Gujarat and have good brand name also but major city area like Ahmedabad has not good market share.

Atop is not doing well in the market. In spite of good distribution network, the brand has not created good brand name in the market. There are many reasons responsible for that. Atop has bright past with it since it’s launching in 2005 but after that tough competition and certain issue have crated problem for the ATOP.

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BIBLIOGRAPHY

Sites Referred

www.atopfood.com

www.tradeindia.com

www. samratnamkeen .com

www.businessstandard.com

www.businesstoday.com

www. balajiwafers .com

www.ficci.com

Books referred

Marketing Management 12h Edition by Philip Kotler

Business research methodology Donald R. Cooper (Author), Pamela S. Schindler

(Author)

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Questionnaires Form

(For Atop wafers/Namkeens)

1. Name: ……………………………………………………………………………………………..

2. Address: …………………………………………………………………………………………… ……………………………………………………………………………………………

3. Do you sell Wafers/ Namkeens? Yes No

4. Which type of Wafers/ Namkeens do you sell? Branded Non Branded

5. Which brands do you sell? Balaji Atop Frito lay Bingo Other Please Specify…………………………………………………………………….

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6. Why do you sell Atop or other…………… wafers/ Namkeens? Fresh Stock Margin Credit Brand Market Visit Services Other Please Specify…………………………………………………………………….

7. Why do you sell Atop wafers/ namkeen? Brand Margin Market Visit Services Other Please Specify……………………………………………………………………

8. Please compare Atop Wafers/ Namkeen with Others.

Atop wafers/ namkeen other wafers/ namkeen

Brand Excellent Brand Excellent Good Good Poor Poor Stock Fresh Stock Fresh Old Old Margin Higher Margin Higher Lower Lower Credit Allow Credit Allow Not Allow Not Allow Market Visit Excellent Market Visit Excellent Good Good Poor Poor Service Excellent Service Excellent Good Good Poor Poor Scheme Scheme

9. Which types of improvement do you recommend? Fresh Stock

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Margin Credit Scheme Market Visit Services Scheme Other Please Specify……………………………………………………………………10. Any comment on Atop.………………………………………………………………………………………………………………………………………………………………………………………………

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