Study of Product Promotion & Marketing Strategies of United Biscuits

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)

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Acknowledgement

I, with all humility, would like to extend my heartfelt thanks to Mr. Mayank Shrivastava,

Regional Manager, Delhi-NCR India, as he allowed me to do the summer project from his

organization.

I would also like to thank Mr. Siddharth Sharma, Area Sales Manager, Ghaziabad & Delhi-NCR

and Mr. Kapil Gupta, Sales Officer, Ghaziabad, for their guidance in making the project and

helping with ideas to conduct the market survey.

I would remain ever grateful to Prof. Pankaj Gupta, Executive Director, Inmantec as his

enthusiasm and dedication has resulted in such a culmination of learning and culture, Prof. R K

Singal, Dean, Inmantec, who is the person to set the young minds to get its first flavor of

Marketing Research and he is also cynosure for all the students in Inmantec and Prof. Lata

Singh, Program Coordinator, who has always been a constant source of inspiration for us.

Not the least, I express my thanks to Prof. Simmi Khurana, the way I have disturbed her every

day is remarkable as her patience has shown me the way.

It is all about my friends and batchmates with whom I have discussed everything, and without

whom the project would have remained another unaccomplished dream.

Mohammad Waseem Asghar

July, 2011

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Index

Particulars Page

Objective 5

Details about United Biscuits 6-8

Product range of United Biscuits 9-11

United Biscuits in India 12

Strategies of United Biscuits 13-16

Competitors of United Biscuits 17

Beat planning & stock report 18-21

Research Methodology 22

Data Analysis and Interpretation 23-42

Findings and Conclusions 43

Limitations 44

Recommendation 45

Bibliography 46

Questionnaire 47-50

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Executive Summary

The project is aimed to find out factors which are important in restructuring the product

promotion so that effective and efficient marketing strategies could be made.

To accomplish my project I had to cover 5-6 kilometers each day along with company salesman.

I visited 20-40 retailers daily. Several shops have quoted negative feedback about the company

saying irregularity of sales agent as well as misinterpretation of selling contract; most of them

have been done orally. Some shops even denied initiating any conversations.

The sales officers were told by the company that every NO would also be an answer. The

project was, therefore, done in such a way that for samples giving negative feedback could also

be utilized to increase efficiency of the organization in its marketing wings and evaluate its

strategies once again.

Beside negative feedbacks, few shopkeepers gave positive response as well which are also

important for future strategy.

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Objective

Primary Objective :

- Identify the factors which are important for marketing strategies.

- Customer awareness about United Biscuits.

- Identify the areas of improvement of United Biscuits.

Secondary Objective :

- Ensuring adequate availability of stocks at stores.

- Coordinating with Sales officer & Distributor.

- Promoting the product at store level.

Introduction of United Biscuits Pvt. Ltd.

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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.

Trail’s of United Biscuits Pvt. Ltd.

1967 Meredith & Drew, a UK crisp manufacturer.

1968 Kenyon Son & Craven, a leading UK nut manufacturer.

1974 Keebler Company, a leading US cookie and cracker manufacturer, subsequently

sold to a number of buyers in 1995.

1982 Terry's of York, the confectionery company, subsequently sold to Kraft Suchard in

1993.

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1988 Ross Young's, a leader in the UK frozen food sector. 60% stake in United Biscuits

China, with a further 30% stake bought in 1991.

1990 Verkade, a leading biscuit and confectionery company in the Netherlands.

1991 Investment in three leading European biscuit companies: Fazer Biscuits (Finland),

Oxford Biscuits (Denmark) and Gyori Keksz (Hungary). Joint venture also established in

Éire.

1994 Further investment in Fazer Biscuits (Finland), taking the investment to 70%, San, a

Polish biscuit manufacturer taking investment to 90%, and Nibb-It Snacks, a Dutch

snackfood manufacturer.

1995 The Original Pretzel Company, Australia.

1997 Acquisition of the French biscuits business, Biscuiterie Nantaise (BN), from

PepsiCo. Inc. in exchange for certain continental European snack operations and the sale

to PepsiCo.

Inc. of The Smiths Snackfood Company, Australia. UB receives a net consideration of

£241 million.

1998 Acquisition of the Continental European Biscuit Business, Delacre, from the

Campbell Soup Company for £125m. Delacre has operations in the Netherlands,

Belgium, Germany, France and exports to the USA. Meiji McVitie, UB buys out Meiji's

50% stake of the venture to form a new company, UB Japan Ltd.

1999 Merger of UB's Young's seafood business with Legal & General Ventures Bluecrest

to create the largest seafood business in the UK. UB and LGV (and its associates) each

hold 44% of equity of the business. Management and other finance providers will hold

the balance.

1999 (September) Acquired certain biscuit operations from German confectionery

company, Stollwerck. UB receives Stollerck's Hungarian biscuit business and appoints

Stollwerck as its sales and distribution agent in Germany.

1999 (October) Binding agreement reached with HJ Heinz Company for the sale of UB's

frozen and chilled food businesses (excluding chilled fish operation) for a price of £190

m payable on completion. Regulatory clearance granted 7th December.

1999 (November) Sale of UB's Grimsby-based chilled fish business to Northern Foods.

The operation supplies added-value seafood products to Marks & Spencer and Waitrose.

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2000 (April) Finalrealm acquires UB.

2000 (May) Sale of UB Nordic A/S and UB Denmark A/S to Danone.

2000 (May) Sale of UB's TUC and Cheddars brands to Danone (Jacob's). Mini-Cheddars

excluded from deal.

2000 (June) Sale of UB Snack Foods SpA and UB Snack Foods GmbH to Danone. This

comprises UB's Donauwörth factory in Germany and a commercial office in Italy.

2000 (July) Acquisition of Nabisco’s European, Middle East and North African

businesses (EMENA).

2000 (November) Sale of UB Malaysia and UB Singapore to Danone.

2000 (November) Sale of UB Hungary to Danone.

2001 (February) Sale of San, Poland to Danone.

2001 (March) Sale of 44% interest in Young’s Bluecrest Seafood Holdings Limited.

2001 (May) Sale of Fazer, Finland to Danone.

2002 (March) Completion of sale of United Biscuits (China) Limited and its subsidiaries

to Nabisco.

2003 (October) Closure of dry mix factory in Tunisia.

2004 (July) New subsidiary company of UBUK opened in Dublin, Ireland - UB

Snackfoods Ireland Ltd.

2004 (August) Acquisition of Triunfo Productos Alimentares, SA, Portugal.

2004 (August) Sale of Benelux Snacks business to Roger & Roger.

2004 (September) Acquisition of Jacob's Biscuit Group from Danone.

2006 (February) Acquisition of the brands Nik Naks and Wheat Crunchies from Golden

Wonder.

2006 (September) Completion of sale of UB Southern Europe to Kraft Foods Inc.

2006 (December) Sale of Business completed to The Blackstone Group and PAI

2009 (November) UB acquires a factory in India.

Different product range of United Biscuits

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McVitie's – McVitie’s biscuits have been enjoyed by generations for around 160 years. The first ever digestive biscuit was created by a new young employee, Alexander Grant. The name Digestive was derived from its high content of baking soda as an aid to food digestion. Over one hundred years later the McVitie’s Digestive remains a firm favourite and is the highest selling brand in the everyday biscuit segment.

Jacob's - W & R Jacob’s Ltd was founded by brothers William and Robert in 1851. The first Cream Cracker was produced in 1885 in a Dublin factory. Between 1914 and 1958 Jacob's grew, expanding in England with the building of the Aintree factory near Liverpool. In 1982, Nabisco bought Associated Biscuits (formed in 1969 with the merger of Jacob's and Associated Biscuit Manufacturers Limited). In 1989, the company was renamed as The Jacob's Bakery Limited and acquired by B.S.N. (Danone). In 2004 Jacob's was acquired by UB.

Twiglets - Twiglets are one of Britain’s classic snack brands. Originally developed by Peak Frean and and first launched in time for Christmas in 1929, Twiglets are now manufactured in the Jacob's factory in Aintree. Twiglets are a unique wholewheat product within the bagged snacks and sharing market. There is a huge amount of brand loyalty with people enjoying Twiglets for their multi- dimensional taste and texture. The extra crunchy bite and knobbly shape combined with the unique flavour make Twiglets irresistible for many.

Phileas Fogg - Phileas Fogg is perhaps the UK's most characterful snacking brand. Opened by four entrepreneurs in March 1982 as Derwent Valley Foods, in the unlikely location of a portacabin in Consett, the company aimed to provide the first adult premium snacks in the UK, with a brand distinguished by its authenticity and quality. Built around the phrase 'Finest Food from around the World' the team developed an array of appetisingly tasty snacks and this, together with quirky advertising, made Phileas Fogg an icon of the late 1980s and early 1990s. In March 1993, Phileas Fogg was acquired by United Biscuits and is now incorporated in our snacks range.

Hula Hoops - 2006 was an exciting year for Hula Hoops, as the whole range was made healthier. They are made with 100% sunflower oil and contain no artificial colours or flavours or MSG. Hula Hoops contain 80% less saturated fat than in 2005, are lower in sodium and still have the same great taste. Hula Hoops are available in the following permanent flavours: Original, Salt & Vinegar, Cheese & Onion, BBQ Beef & Roast Chicken.

BN - Created in 1897, BN is seen as a traditional brand and it enjoys a good reputation in France. Over the years, BN has established itself as an indispensable brand in the children’s biscuit market, focusing in particular on the snack sandwich cookie segment. Listed among the ten most popular brands among children in France, BN relies on the strength of its image as a unique brand, that of a biscuit with an appetising smile.

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Go ahead! - go ahead! was launched in 1996 into the biscuits category and quickly became the UK’s No.1 lower fat biscuits range. Since 2000 the healthier snacks market has grown significantly as consumers have become more health conscious. The choice and variety within the healthier biscuits category is phenomenal and sees the sector now worth over £373m. This is now the biggest sector in the biggest market and is the fastest growing.

Sultana - Founded in 1886 in Zaandam in the Netherlands, starting off mainly with the production of bread and rusks, Verkade has brought a wide range of delicious biscuits and chocolate to Dutch consumers ever since. The Verkade brand is known by nearly all Dutch consumers, who have appreciated Verkade classics since childhood. The Sultana biscuit was launched as a tea biscuit with raisins and currants more than fifty years ago by Verkade. Nowadays, Sultana offers a complete range of products to consumers and has become a star brand under the Verkade name.

Skips - Skips is the favourite distinctive Prawn Cocktail flavoured snack with a unique, well recognised petal shape. It was first launched in 1974. Skips are created using Japanese technology, under license from Meji, to create the unique tongue-tastic mouth experience on the tongue. Skips are identifiable by their star shaped red veins running through the petal. Skips are available in Prawn Cocktail flavour. Sizzling Bacon flavour and Utterly Cheesy flavour were launched in 2005 in multipacks, offering fun and variety to the consumers.

Penguin - Penguin was first produced in 1932 by William McDonald, a biscuit manufacturer in Glasgow, and became a McVitie’s brand when McDonald joined with McVitie’s and Price, MacFarlane Lang & Co and Crawford to form United Biscuits in 1948. Penguin is enjoyed by families with young children.

Mini Cheddars - Mini Cheddars have been around for over 20 years and are still the UK’s no.1 savoury baked snack, delivering a substantial savoury hit and satisfaction. Since 2001 the brand has enjoyed strong growth through the introduction of a 50g pack. Mini Cheddars is one of the UK's most established snack brands and is loved by a wide range of different consumers. Despite its deceptive size, Mini Cheddars delivers a surprisingly satisfying cheesy hit any time the munchies strike. Aimed at a broad target, mainly families, Mini Cheddars are ideal for when you have the tummy rumbles and you want something genuinely cheesy to keep you going until meal time.

McCoy's - McCoy’s was launched in 1985 as the “big chip from the big country”, the definitive ridged cut potato chips with real flavours. Standard McCoy's were launched in 1987. The McCoy’s brand is now the 3rd biggest brand in the bagged snacks market. The Real McCoy's ridge cut crisps were designed and built with men in mind to give a substantial and involving eat that could satisfy the male appetite using real potatoes with real food flavours.

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KP - KP originally began life as a manufacturer of sugar confectionery, jams and pickle in 1853. KP Nuts is brand leader in the UK Nuts category dominating the total convenience and impulse market. Its nuts have been the snack of choice eaten at parties and pubs all over Britain for more than 50 years. To consumers KP Nuts is the brand synonymous with quality peanuts. It is distinctly positioned as an adult snack brand for everyday in-home socialising, at the pub or eating on the go. KP Nuts has a strong affinity with drinking and socialising with 40% of ‘eating occasions’ being with alcohol, especially over the peak social seasons – Summer and Christmas.

Carr's - Carr's Table Water biscuits in their original form first appeared in the late 19th Century as a refinement of the ship's biscuit. Carr's is the leading premium cracker brand and the range consists of the following products: Carr's Table Water, Carr's Melts range, Carr's Selections and now Carr's Nibbles.

McVitie's Jaffa Cakes - McVitie’s Jaffa Cakes were introduced over 60 years ago and the brand is now the 4th biggest in the biscuit market. Over 3 million McVitie’s Jaffa Cakes are made every day, each taking 18 minutes to make. The original recipe is a closely guarded secret, but the delicious combination of light sponge, plain chocolate and the smashing orangey bit in the middle has made McVitie’s Jaffa Cakes infinitely loved by the British nation.

Delacre - Established in the 1870s, Delacre was first known for its Belgian chocolate. Acquired by UB in 1998, the Delacre brand has quickly gained a reputation as a specialist in adult biscuits though impactful communication on its core biscuits and recent innovative launches (for example, Fou de Chocolat in October 2002). Delacre is well known for its wide range of indulgent biscuits in both France and Belgium. The core of the Delacre product portfolio consists of various high quality biscuit assortments, in which luxury chocolate biscuits dominate.

Verkade - Over the 50-plus years of its existence, Sultana has become a star brand under the Verkade name and other classics include San Francisco, Maria, Knappertjes, Café Noir, Nizza and Sprits. In recent years the Verkade biscuits portfolio has been successfully extended from the ‘classical’ range with biscuits from United Biscuits overseas, such as Digestives from England, BN from France and most recently Délichoc from Belgium. The Verkade brand is also present in France, with the Fruit & Form range and Verkade Bio range.

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.

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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.

Product range of United Biscuits in India

1. McVitie's Digestive – United Biscuits have launched McVities Digestive in 82gm pack priced Rs.

10/- and 230gm pack priced Rs 30/- with new variety of taste & quality in India.

2. McVitie's Chocolate Cream – Mcvities Cream chocolate flavour in 63gm priced Rs 10/- and

would be competing with Britannia Cream Biscuits.

3. McVitie's Cashew Cookies – United Biscuits have launched Mcvities Cookies in 68gm pack

priced Rs 10/- and would be competing with Britannia Good Day and Sunfeast Special.

4. McVitie's Butter Cookies – United Biscuits have launched McVities Butter Cookies in 68gm

pack priced Rs 10/- and would be competing with Britannia Butter Cookies.

5. McVitie’s Marie - United biscuits have launched McVities Marie in 63gm pack priced Rs 10/-

and would be competing with Britannia Marie Gold and NutriChoice and Sunfeast Marie Lite.

Strategies

UB's strategy is driving long-term sustainability in the business, sustainable performance for UB & engaging with consumers, employees and local communities to improve and promote health and wellbeing, education, skills development and the support of charities.

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UB seeks to drive sustainable performance in all it does. This includes delivering consistently on our promise to consumers, serving our customers, developing and engaging actively with our employees, delivering superior financial results to our owners year in year out, minimising our impact on the environment and interacting constructively with the communities in which we operate. We are investing in the future whilst delivering results today.

Marketing Mix:

Marketing mix must focus on the product, pricing, promotion, and placement of item in order to make it successful. Marketing strategies must feature customer orientation, input, and accessibility in the fight to the top of the market.

Product Strategies: There have been so many strategies since the launching of the McVities brand in India but it is difficult to account for them all, the one the McVities product McVities Digestive. These biscuit have given customers a mental image of what to look for when they want quality biscuits for a low price with hi-fiber digestive, wheat flour with choker & without any trans fat. UB also provide other McVities like Marie, Chocolate cream, Butter & Cashew Cookies with natural proteins, rich calcium, zero-clolesterol & Delicious taste.

Pricing Strategies: The price of the Product is Rs. 10/- of 83gm of Digestive, 68gm of Butter & Cashew Cookies, 63gm of Marie & Chocolate cream. This is slightly higher than a normal biscuits (in India at least) but it will be repaid with a slightly larger amount of chocolate than a normal biscuits. Sometimes McVities give allowances & discount on the list price for promotional purpose. A price of Rs. 10/- is fair for the start of the product, in order to allow it an easy entrance into the market and hopefully encourage more people to buy it and continue buying it.

Place Strategies: United Biscuits focuses on store placement and are always looking for the best locations. The product will be sold everywhere possible. Supermarkets, small stores and self stores which sell other biscuit brands. The organization's overall objective is to increase market share. In this instance, the focus is purely on localization with different strategies for Indian market. The company emphasis on it's distribution network. Proper distribution network gives proper availability of the product.

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. Therefore, United Biscuits marketing executives then put together the way of differentiating the biscuits from other competitors. United biscuits uses many kinds of promotions to keep its biscuits at

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the top of the industry. Promotion is one of the important elements of marketing mix. The elements of promotion used by United Biscuits…

1. Advertising 2. Sales Promotion

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 and the European Championships

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.

Determining which way to market McVitie's and its products is a very important decision that can either

cause products to fail or take flight. These same decisions must be made in regards to the marketing of

the company as a whole. Strategy is the name of this game.

Sales Promotion Strategy

A sales promotion strategy is an activity that is designed to help boost the sales of a product or service. This can be done through an advertising campaign, public relation activities, a free sampling campaign, a free gift campaign, a trading stamps campaign, through demonstrations

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and exhibitions, through prize giving competitions, through temporary price cuts, and through door-to-door sales, telemarketing, personal sales letters, and emails.

Sales promotion strategy used by UB:

A combination of Push & Pull strategy.

A Push Strategy:

A ‘push’ sales promotion strategy involves ‘pushing’ distributors and retailers to sell your products and services to the consumer by offering various kinds of promotions and personal selling efforts. The basic objective of this strategy is to persuade retailers, wholesalers and distributors to carry your brand, give it shelf space, promote it by advertising, and ultimately ‘push’ it forward to the consumer. Typical push sales promotion strategies include; buy-back guarantees, free trials, discounts, and specialty advertising items.

A Pull Strategy:

A ‘pull’ sales promotion strategy focuses more on the consumer instead of the reseller or distributor. This strategy involves getting the consumer to ‘pull’ or purchase the product/services directly from the company itself. This pull strategy is often used when distributors are reluctant to carry or distribute a product. Typical pull sales promotion strategies include; samples, coupons, cash refunds or rebates, loyalty programs and rewards, contests, games, and point-of-purchase displays.

A Combination of Two Strategies:

A ‘combination’ sales promotion strategy is just that; it is a combination of a push and a pull strategy. 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.

Objective & Tools of Sales Promotion of Mc Vitie’s

Product promotion is the act of advertising a good or service with the short/long term goal of increasing the sales. United Biscuits promoting its Mc Vitie’s Biscuits by Visual media & print media Ads.

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For consumers United Biscuits has following sales promotion objective: 1. Encourage purchase of larger size units2. Build trial among non users and3. Attracting switchers away from competitors’ brands. For retailers United Biscuits has following sales promotion objective: 1. Persuading retailers to carry new items and higher levels of inventory2. Encourage off season buying3. Building brand loyalty and4. Gaining entry into new retail outlets Tools used United Biscuits for consumers’ promotion: 1. Freebies 3. Sample2. Coupon 4. Extra quantities Tools used United Biscuits for retailers’ promotion: 1. Price off

Point of Sales Display of Mc Vitie’s

A point-of-sale display (POS) is a specialized form of sales promotion that is found near a checkout counter. They are intended to draw the customers' attention to products, which may be new products, or on special offer, and are also used to promote special event to attract the customers and raise the sales of the products. United Biscuits sales displays play a very important role in pushing the product to the customer and to popularize it. United Biscuits sales displays are used to maximize product exposure, stimulate product interest, facilitate sales transactions, ensure product security, and keep reminding customers of his purchase.

For Point of Sales Display United Biscuits selected those retail stores which are located in potential market and people of that particular area know the retail store. These retail stores have heavy amount of product sales of biscuits.Company pays Rs. 300/- to Rs. 500/- as sales display amount on monthly basis.

Competitors of United Biscuits

Generally all organizations have competitors in the market. A particular organization always comprises with other same business and according to market share it clarifies the brand of product is getting more challenge from other Brands product.

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Competitors of United Biscuits in India:The existing market leaders in the Indian biscuit market are -1 – Parle 2 - Britannia 3 - ITCIt 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 demand of biscuits in the market are ranked as follows.

1. Britannia. 2. Parle. 3. ITC. 4. McVities.

Two Dimensional Perceptual Mapping:

High value proposition Britannia Mc Vitie’s Parle

High Price ITC Competitive Price

Low Value Proposition

Mc Vitie’s of United Biscuits has high price & low value proposition compared to Britannia & Parle and comparetively United Biscuits should follow the quality, price, distribution system, promotional strategy etc of the competitors Britannia & Parle, who are doing well in Ghaziabad. So this is the comparison with other biscuits brands. According to our findings we found that Britannia is the market leader followed by Parle biscuits. These two biscuits companies are the lion's share in the biscuits industry.

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.

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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.

Stock Availability & Re-Order Report of Mc Vitie’s

Name of the outlet

Area Digestive Chocolate Cream

Cashew Cookies

Butter Cookies

Marie Stock Availability & Reorder

82gm 230gm 63gm 68gm 68gm 117gS O S O S O S O S O S O

Hinds depr store

Gandhi Nagar A - A - A - A - A - A - SA *

Rama confect

Gandhi A - A - A - A - A - A - SA *

Krishna dept Gnd nagar A - A - A - A - A - A - SA *Makked confect

Nehru nagar A - A - A - A - A - A - SA *

K.K super store


City super store


Kanha dept store


S.Bora Gandhi ngA - A - NA - A - A - A -

NA *

Pal general store


Diamond diary

Rakesh marg A - A - A - A - A - A - SA *

Biran super store


Satkar dept R marg A - A - A - A - A - A - SA *Gurunanak super store


M.K A2Z store


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Renuka confec

Sihani gate A - A - A - A - A - A - SA *

Kapoor BaitriR.marg

A - A - NA - A - A - A -NA *

Pooja provision


Kausik confect

Gandhi nagar A - A - A - A - A - A - SA *

Tarun namkin

Kuntenam road A - A - A - A - A - A - SA *

HIND DEP.STORE

GANDHI NGR A - A - A - A - A - A - SA *

HARSH CONF.


MAKKAR CONF.


PAL PROV. STORE


RAMA CONF.GANDHI

NGR A - A - A - A - A - A - SA *Musk Bakers Kavi nagar A - A - A - A - A - A - SA *

Goel store Kavi nagar A - A - A - A - A - A - SA *Bansal store Kavi nagar A - A - A - A - A - A - SA *Choco zone Kavi nagar A - A - A - A - A - A - SA *Vira shop Kavi nagar A - A - A - A - A - A - SA *

Super store Kavi nagar A - A - A - A - A - A - SA *7/11 Store Kavi nagar A - A - A - A - A - A - SA *

Upahar conf Kavi nagar A - A - A - A - A - A - SA *Kapoor conf Kavi nagar A - A - A - A - A - A - SA *

Full stock ShKavi nagar

NA O NA O A O A O A ONA O

NA RO

Sharma prov Kavi nagar A - A - A - A - A - A - SA *Parriza prov Kavi nagar A - A - A - A - A - A - SA *

Veer gen stor Kavi nagar A - A - A - A - A - A - SA *Sai dept Kavi nagar A - A - A - A - A - A - SA *

Garwapunam Raj nagar A - A - A - A - A - A - SA *Single vail Raj nagar A - A - A - A - A - A - SA *Sachinder

provRaj nagar

A O A O A - A O A -NA O

NA RO

Om sai Raj nagar A - A - A - A - A - A - SA *Om provision Raj nagar A - A - A - A - A - A - SA *

Sreebalaji prov

Raj nagarA - A - A - A - A - A - SA *

K.C store Raj nagar A - A - A - A - A - A - SA *Gill greep Raj nagar A - A - A - A - A - A - SA *VG store Raj nagar A - A - A - A - A - A - SA *

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Uma store Raj nagar A - A - A - A - A - A - SA *Super choice Raj nagar A - A - A - A - A - A - SA *New1 prov Raj nagar A - A - A - A - A - A - SA *Mini super

bazaarRaj nagar

A - A - A - A - A - A - SA *Muskan conf Raj nagar A - A - A - A - A - A - SA *

Vati store Raj nagar A - A - A - A - A - A - SA *Obill store Raj nagar A - A - A - A - A - A - SA *Sree balaji provision

Chiranjiv Vihar A - A O A - A O A O A O SA RO

new balaji provision

CVA - A - A - A - A - A - SA *

Muskan conf C.V A - A - A - A - A - A - SA *Prem kirana

storeChiranjiv

Vihar A - A - A - A - A - A - SA *puja depat

storeChiranjiv

Vihar A - A - A - A - A - A - SA *Harjit

provisionChiranjiv

Vihar A - A - A - A - A - A - SA *Adity prov CV A - A - A - A - A - A - SA *

Jain provision CV A - A - A - A - A - A - SA *Aryan bakers CV A - A - A - A - A - A - SA *Snow point CV A - A - A - A - A - A - SA *

newzone provi

CVA - A - A - A - A - A - SA *

Muskan conf G Puram A - A - A - A - A - A - SA *Balaji store Govind Pu A - A - A - A - A - A - SA *

Agarwal sweets

Govind Puram A - A - A - A - A - A - SA *

Puja prov Govin Prm A - A - A - A - A - A - SA *Gaitri prov Govin Pm A - A - A - A - A - A - SA *Jagdamba

provGovind Puram A - A - N/A - A -

N/A - A -

NA *

Shivam prov Govind Pu A - A - A - A - A - A - SA *Hari om

provisionGovind Puram A - A - A - A - A - A - SA *

Karan veer provision


New hari om provision


ANAND PRO. Patel Ngr A - A - A - A - A - A - SA *YOGESH PRO. P NGR A - A - A - A - A - A - SA *

RASHMI G.STORE

PATEL NGR A - A - A - A - A - A - SA *

YOGESH PRO. P NGR A - A - A - A - A - A - SA *NARENDER PATEL A - A - A - A - A - A - SA *

20

COSM NGRNARENDER

COSMPATEL NGR A - A - A - A - A - A - SA *

PUSHPADEVI GEN STORE


RASHMI G. & CONF.


RAUNAK GEN STORE


SAURABH KIRANA

PATEL NGR A -

N/A - A - A - A - A -

NA *

SAURAV BAKERY


ANKUR PRO L NGR A - A - A - A - A - A - SA *ARARA STORE

LOHIYA NGR A - A - A - A - A - A - SA *

SANJAY STORE


SATYA STORE LOHI NGR A - A - A - A - A - A - SA *ARORA PRO. LOHI NGR A - A - A - A - A - A - SA *

APURVA PROV

LOHYa NGR A - A - A - A - A - A - SA *

BALAJI CONF. LOH NGR A - A - A - A - A - A - SA *METRO STORE


SANJAY STR LOHI NGR A - A - A - A - A - A - SA *ANANT GEN

STORELOHIYA

NGR A - A - A - A - A - A - SA *ANKUR PRO L NGR A - A - A - A - A - A - SA *

METRO STORE


SANJAY STORE

LOHIYA NGR A O

N/A O A - A - A - A O

NA RO

SHIVAM JUICE CONER


Omsai conf Sastri ngr A - A - A - A - A - A - SA *

Research Methodology

Marketing Research: Quantitative Research

21

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:

Ghaziabad-

Kavi Nagar, Raj Nagar, Lohiya Nagar, Patel Nagar, Sastri nagar, Chiranjeev Vihar, Dasna

Gate, Gandhi Nagar, Nehru Nagar, Sihani Gate, Govind Puram.

Data Analysis & Interpretation

1. How did you get to know about Mc Vitie’s biscuits?News Paper & Magazines. T.V Commercial

22

Outdoor Media (Banners & Hoardings) Any Other.

News Papers & Magazines 10

T.V Commercials 9

Outdoor Media 0

Any Other 81

McVities

News Papers & MagazinesT.V CommercialsOutdoor MediaAny Other

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. Rate the following. (1 – Bad, 2 - Average, 3 – Good, 4 – Very Good, 5 – Excellent)

Packaging Price Quality Quantity a. McVitiesb. Britania

c. Parled. ITC

23

e. Others2/A.

McVities Britannia Parle ITC0

10

20

30

40

50

60

70

80

Packaging

BadAverageGoodVery GoodExcellent

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. Price.

24

Packaging Bad Average Good Very Good ExcellentMcVitie's 0 23 61 16 0Britannia 0 0 30 70 0

Parle 0 0 62 38 0ITC 0 9 45 46 0

Price Bad Average Good Very Good

Excellent

McVitie's 0 35 65 0 0Britannia 0 0 36 64 0

Parle 0 0 43 57 0

ITC 0 0 57 44 0

McVitie'sBritannia

ParleITC

0

10

20

30

40

50

60

70

Bad

Average

Good

Very Good

Excellent

BadAverageGoodVery GoodExcellent

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. Quality.

25

Quality Bad Average Good Very Good Excellent

McVitie's 0 13 49 38 0

Britannia 0 0 20 80 0

Parle 0 0 38 62 0

ITC 0 0 65 45 0

McVitie's Britannia Parle ITC0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ExcellentVery GoodGoodAverageBad

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. Quantity.

26

Quantity Bad Average Good Very Good Excellent

McVitie's 0 18 82 0 0

Britannia 0 0 34 64 0

Parle 0 0 35 65 0

ITC 0 0 47 53 0

McVitie's Britannia Parle ITC0

20

40

60

80

100

120

ExcellentVery GoodGoodAverageBad

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? RANK 1. 2. 3. 4. 5. McVities-Digestive. McVities-Butter Cookies.

27

McVities-Cashew Cookies. McVities-Marie. McVities-Chocolate Cream.

RANK 1. 2. 3. 4. 5.

McVities Digestive. 82 12 3 3 0

McVities-Butter Cookies. 4 10 27 48 11

McVities-Marie. 2 32 39 10 17

McVities-Cashew Cookies 6 38 22 18 16

McVities-Chocolate Cream. 6 8 9 21 56

McVities

Digesti

ve.

McVities-

Butter Cookie

s.

McVities-

Marie.

McVities-

Cashew

Cookies.

McVities-

Chocolat

e Crea

m.0

102030405060708090

12345

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? McVities Britannia Parle ITC

Mc Vitie’s 13

Parle 29

28

Britannia 37

ITC 21

Demand

Mc Vitie’sParleBritanniaITC

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? Yes. No. May be.

YES 56

NO 35

MAYBE 9

29

YES

NO

MAYBE

0 10 20 30 40 50 60

Convince

Convince

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. Better. Good. Bad. Not effective.

Very Good 9

30

Better 12

Good 24

Average 35

Not Effective 20

9%

12%

24%

35%

20%

scoreVery Good Better Good Average Not Effective

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? 1-time. 2-times. 3-times. More than 3-times.

Times Stores

1-time 26

31

2-times 69

3-times 5

More than 3-times 0

1-time

2-times

3-times

More than 3-times

0 10 20 30 40 50 60 70

Visits

Visits

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? Yes. No.

Yes 42

32

No 58

42%

58%

SatisfactionYes No

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? Days: 10-29 30-40 >40 McVities-Digestive. McVities-Butter Cookies. McVities-Cashew Cookies. McVities-Marie.

33

McVities-Chocolate Cream.

Mc Vitie’s Products 10-29 Days 30-40 Days More than 40 Days

Digestives 63 32 5

Butter Cookies 12 36 52

Cashew Cookies 15 35 50

Marie 17 39 44

Chocolate Cream 9 27 64

Digesti

ves

Butter Cookie

s

Cashew

Cookies

Marie

Chocolat

e Crea

m0

20

40

60

80

100

120

More than 40 Days30-40 Days10-29 Days

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? Hyper-3shelves. Super-2shelves. Daily-single shelves.

Hyper/ 3 Shelves 33

34

Super/ 2 Shelves 52

Daily Single Shelves 15

Hyper/ 3 Shelves

Super/ 2 Shelves

Daily Single Shelves

0 10 20 30 40 50 60

Visibility

Visibility

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?Coupons Scratch-CardsPrice-off Lucky-DrawFreebiesExtra Quantities

35

Coupons 57

Price-off 39

Freebies 87

Extra Quantities 93

Scratch-Cards 0

Lucky-Draw 0

Coupons; 57

Price-off; 39

Freebies; 87

Extra Quantities; 93

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?Print media (news papers, magazines etc) Electronic media(television & radio commercials)

Trade show & sampling

Print Media 39

Electronic Media 93

36

Trade show & sampling 73

Print Media Electronic Media Trade show & sampling0

10

20

30

40

50

60

70

80

90

100

Media section

Media section

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? Satisfied Neutral Dissatisfied

With the sales growth of McVities this year. With sales growth of McVities compared with that

Of your other major suppliers of competitiveproducts

With the productivity of your working relationshipWith McVities field organization this year.

37

Factors Satisfied Neutral Dissatisfied

With the sales growth of McVities this year 29 32 39

With sales growth of McVities compared with that of your other major suppliers of competitive products

16 43 41

With the productivity of your working relationship with McVities field organization this year.

19 54 27

020406080

100120

DissatisfiedNeutralSatisfied

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?_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Suggestions

1. Cookies Biscuit quality of taste should improve.

2. Packaging of Digestive should improve.

38

3. Different variety of biscuit should be more.

4. Proper advertisement is required.

5. Package weight is lesser than other biscuits such as Parle and Britannia.

6. Regularity of sales officers vist should increase.

7. Before launching any new flavor of biscuit, sample should be distributed.

8. 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.

39

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

1) Area – Survey is based on Ghaziabad City’s retailers.

2) Sample Size, I had only 100 sample size for the survey which is less for Ghaziabad City.

3) While collection of the data many retailers were unwilling to fill the questionnaire.

4) Lack of proper experience on the part of the researcher in conducting such studies in

the past.

40

5) The time period for carrying out the research was short as a result of which many facts

have been left unexplored.

Recommendations

a) Some places distributors not able to cover his particular area. That should be improved.

b) Small pack of Rs. 5/- also should be in the market.

c) Always collect the views of retailers. It gives psychological effect on the retailers about

care ness by manufacturing company.

d) Proper supply chain should be so that biscuits can be supply on time and reduce stock out

problem.

41

e) More focus ‘A’ and ‘B’ category of retailers rather than wasting time and money on ‘C’

category retailers.

f) Focus more on advertising and sales promotion.

g) 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

42

http://bakerybazar.blogspot.com/2010/03/united-biscuits-mcvities-penguin-to.html

http://bakerybazar.blogspot.com/2011/04/united-biscuits-rope-in-movie-stars-as.html

http://www.mcvities.com/

http://www.unitedbiscuits.com/

Marketing Research by H.W. Boyd, Jr. R. Westfall and Stanley F. Stasch

Marketing Research by Naresh K. Malhotra

Questionnaire used for Customer Awareness on McVities in stores (Tick mark the appropriate answer)

Name:

1. Did you know about McVities ?Yes. No.

2. Which product of McVities biscuits do you prefer ?Digestive. Butter Cookies. Cashew Cookies.Chocolate Cream. Marie.

43

3. The brand McVities belongs to which company ?Britannia Parle ITCUnited Biscuits Pvt.Ltd

4. Where is the manufacturing facility of United biscuits in India ?Gurgao, Haryana Kala Amb, Himachal Prades Surat, Gujrat

5. McVities biscuits are exported from India to ?Brazil South Africa & Middle East Japan

6. Which Brand of United Biscuits launched in India out of its 17 brands ?McCoy’s Jacob’s McVitie’s

7. Head office of United Biscuits in India situated at ?Delhi Mumbai Kolkata

8. In manufacturing & quality United Biscuits stands at which position in the world ?1st. 2nd. 3rd.

9. Among this key markets of United Biscuits, McVities is largely produced & sales in ?USA Australia UKIndia Nigeria UAE

10. Twelve awards achieved by United Biscuits but in given options which one is wrong ?Waste Minimization Award Best Logistics Award Oscar AwardSustainable Marketing & Innovation Award Health & Environment Award

11. How do you feel after gaining the knowledge about McVities biscuits ?McVities is Excellent Always prefer McVities Will try McVities

(For further information log on to www.unitedbiscuits.com, Thank You for your valuable time!)

Questionnaire for RetailersName of the Shop/Store:

(Tick mark the appropriate answer.)1. How did you get to know about Mc Vitie’s biscuits?News Paper & Magazines. T.V CommercialOutdoor Media (Banners & Hoardings) Any Other.

2. Rate the following. (1 – Bad, 2 - Average, 3 – Good, 4 – Very Good, 5 – Excellent)

Packaging Price Quality Quantity f. McVities

44

http://www.unitedbiscuits.com/

g. Britanniah. Parlei. ITCj. Others

3. Rank the following according to the customer preference? RANK 1. 2. 3. 4. 5. McVities-Digestive. McVities-Butter Cookies. McVities-Cashew Cookies. McVities-Marie. McVities-Chocolate Cream.

4. Which brand is most demanded by customers? McVities Britannia Parle ITC Others

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

Yes. No. May be.

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

Very good. Better. Good. Bad. Not effective.

7. How many times in a week sales man visit your store? 1-time. 2-times. 3-times. More than 3-times.

8. Are you satisfied with the Distributer of McVities? Yes. No.

9. In how many days you Re-Order McVities? Days: 10-29 30-40 >40 McVities-Digestive. McVities-Butter Cookies. McVities-Cashew Cookies. McVities-Marie. McVities-Chocolate Cream.

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

Hyper-3shelves. Super-2shelves. Daily-single shelves.

11. Which of the following promotional schemes McVities use?Coupons Scratch-Cards

45

Price-off Lucky-DrawFreebiesExtra Quantities

12. Which section of the media shall be employed to promote this product?

Print media (news papers, magazines etc) Electronic media (tv & radio advertisement)

Trade show & sampling

13. How satisfied are you? Satisfied Neutral Dissatisfied

With the sales growth of McVities this year. With sales growth of McVities compared with that

Of your other major suppliers of competitiveproducts

With the productivity of your working relationshipWith McVities field organization this year.

14. Any suggestions for McVities?_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

Thank you for your valuable time.

46

Study of Product Promotion & Marketing Strategies of United Biscuits

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