20684119 Sales Management Project

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    PROJECT REPORT

    ON

    SALES PROMOTIONAL ACTIVITY

    OF

    SAFAL VS RELIANCE FRESH

    AMITY BUSINESS SCHOOL AUUP.

    SUBMITTED TO:-

    MS. VANDANA GUPTA

    SUBMITTED BY:-

    NEERAJ AGRAWAL [309D19]

    DUSHYANT SHAH [309D14]

    AAKRITI GARG [309D09]

    ANINDITA BAGCHI [309D04]

    SANKET KHURANA [309D57]

    RAHUL BADESRA [309D24]

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    ACKNOWLEDGEMENT

    Acknowledging the debt is not easy for us as we are indebted to somany people. We take this opportunity in expressing the fact thatthis project report is the result of incredible amount ofencouragement, co-operation, will to help and moral support wereceived from others.

    We acknowledge our sincere gratitude to our faculty Ms. VandanaGupta for her valuable guidelines, inspiration and supportthroughout the course of study.

    We are also thankful to Sales Manager of Safal & Reliance Fresh forhelping us in getting information from various sources. We will fail inour duty if we forget to express our gratitude to well wishers, family

    and friends who have given emotional and intellectual support to us.

    We must not also fail to acknowledge the help of those numerousSafal and Reliance Fresh customers who spent a part of their busyschedule in being a part of our survey.

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    CERTIFICATE

    This is to certify that Project Report entitled SALES PROMOTION

    ACTIVITY OF SAFAL VS RELIANCE FRESH is submitted by belowmentioned group is a genuine work and the matter embodied in the

    project is original to the best of our knowledge. The matterembodied in the project work has not been submitted for theaward of any other degree, diploma or any other similar title orprizes to the best of our knowledge and belief.

    NEERAJ AGRAWAL [309D19]

    DUSHYANT SHAH [309D14]

    AAKRITI GARG [309D09]

    ANINDITA BAGCHI [309D04]

    SANKET KHURANA [309D57]

    RAHUL BADESRA [309D24]

    PLACE: NOIDA

    DATE: 07TH SEPTEMBER 2009.

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    INTRODUCTION

    SAFAL

    Fruit and Vegetable Unit was set up in the year 1988 by NationalDairy Development Board, an institute of national importance, abody corporate created by Government of India, with an objective toprovide a direct link between fruit and vegetable growers andconsumers. The unit has drawn on NDDB's three decades of dairysector strengths in designing it's state of the art large andultramodern central distribution facility to handle fresh and frozenfruit and vegetable.

    Presently it is a unit of Mother Dairy Foods Processing Ltd, a whollyowned company of Mother Dairy Fruit & Vegetable Ltd. In April 2000,Mother Dairy Fruit & Vegetable Ltd was created as a subsidiary ofNDDB. The processed products of the unit are marketed with thebrand name 'SAFAL'

    Unit complex is situated on 22 acres of land. It comprises a

    prefabricated building consisting of cold store chambers withdifferent sets of temperature and humidity conditions suitable forstorage of various fruit and vegetables. It has controlled atmosphere

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    chambers and ripening rooms, deep freeze rooms, preparation hall,processing hall, dispatch hall, reception, dispatch facilities etc.Material handling is done in specially designed plastic crates withthe help of forklifts...

    The Unit also initiates and supports production enhancementactivities at farm, improved pre and post harvest practices, efficientlogistics from farm to the retail outlets, scientific quality assuranceand education of grower, support staff and consumer. Production ofquality product begins at the farm level where the grower, in co-operation with unit officials, work to cultivate and supply qualityproduce to the Unit.

    With the utmost care and dedication, the growers and Unit officialstry to apply their professional knowledge and skills to giveconsumers the best return for their money. Standards are definedfor each fruit and vegetable so as to link price to quality.Procurement specialists and trained field staff help the farmers incrop management and protection. Efforts are made to introduce newseed varieties and scientific methods of agriculture to increase theyield and improve the quality of produce.

    279 specially designed modern retail outlets have been set up inand around Delhi to market fresh and frozen fruit and vegetables,directly to the consumers. Each shop caters to large number ofcustomers, with a capacity to sell 1,600 kilos of fruit and vegetablesa day. The shops are equipped with electronic machines thatautomatically weigh the produce and print item wise bills. Unit alsomanufactures products such as Jam, Squash, and Ketchup etc at

    its Ramgarh unit. Fruit & Vegetable Unit is IS/ISO-9002:1994 / DINEN ISO 9002: 1994 & HACCP Certified Organization.

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    RELIANCE FRESH

    The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002),is India's largest private sector enterprise, with businesses in theenergy and materials value chain. Group's annual revenues are inexcess of USD 27 billion. The flagship company, Reliance IndustriesLimited, is a Fortune Global 500 company and is the largest privatesector company in India.

    Backward vertical integration has been the cornerstone of theevolution and growth of Reliance. Starting with textiles in the lateseventies, Reliance pursued a strategy of backward verticalintegration - in polyester, fibre intermediates, plastics,

    petrochemicals, petroleum refining and oil and gas exploration andproduction - to be fully integrated along the materials and energyvalue chain.

    The Group's activities span exploration and production of oil andgas, petroleum refining and marketing, petrochemicals (polyester,fibre intermediates, plastics and chemicals), textiles and retail.

    Reliance enjoys global leadership in its businesses; The Groupexports products in excess of USD 15 billion to more than 100

    countries in the world. There are more than 25,000 employees onthe rolls of Group Companies. Major Group Companies are RelianceIndustries Limited (including main subsidiaries Reliance Petroleum

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    Limited and Reliance Retail Limited) and Reliance IndustrialInfrastructure Limited.

    Reliance Fresh is the Retail chain division of Reliance Industries ofIndia which is headed by Mukesh Ambani. Reliance has entered into

    this segment by opening new retail stores into almost everymetropolitan and regional area of India. Reliance plans to invest Rs.25000 Crores in the next 4 years in their retail division and plans tobegin retail stores in 784 cities across the country.

    The Reliance Fresh supermarket chain is RILs Rs. 25,000 Croreventure and it plans to add more stores across different states, andeventually have a pan-India footprint by year 2011. The super marts

    will sell fresh fruits and vegetables, staples, groceries, fresh juicebars and dairy products and also will sport a separate enclosure andsupply-chain for non-vegetarian products. Besides, the stores wouldprovide direct employment to 5 Lakh young Indians and indirect jobopportunities to a million people, according to the company. Thecompany also has plans to train students and housewives incustomer care and quality services for part-time jobs.

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    PRODUCT LINE

    SAFAL

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    1. FRESH FRUITS like Green Apple, Strawberry, Kiwi, Cherry, etc

    2. FRESH VEGETABLES like Cauliflower, Potato, Tomato, etc

    3. IQF VEGETABLES like Frozen Peas, Frozen Aloo Tikki, etc

    4. PROCESSED FOOD like Pickle, Squash, Jam, Ketchup, etc

    5. ICE CREAMS of various flavours and types.

    6. DAIRY PRODUCTS like Butter, Milk (Flavoured & Tetra Pack).

    7. BAKERY like Bread, etc8. EDIBLE OILS like vegetable oil, etc

    RELIANCE FRESH

    1. FRESH FRUITS

    2. FRESH VEGETABLES

    3. FMCG PRODUCTS

    4. DAIRY PRODUCTS

    5. HOUSEHOLD PRODUCTS

    6. GROCERIES

    7. NON-FOOD ITEMS

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    8. READY TO EAT PRODUCTS

    9. STAPLES

    MOST OF THE ABOVE PRODUCT LINE OF RELIANCE FRESH ARE SAMEAS THAT OF SAFAL.

    SALES PROMOTIONAL OFFERS

    SAFAL

    1. SAFAL GUVAVA NECTOR 200ML. OF MRP RS. 45/-

    OFFER PRICE RS. 30/- ONLY.

    2. ON PURCHASE OF TWO SAFAL GUVAVA NECTOR GET ONEFREE.

    3. ON SAFAL MANGO & GUVAVA NECTOR (FRUIT JUICE) 1 LITREPACK GET RS. 25/- OFF ON MRP.

    4. ON SAFAL MIXED FRUIT JUICE 1 LITRE PACK GET RS. 17/- OFFON MRP.

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    5. ON SAFAL FROZEN PEAS 500GM. PACK GET 100GM. FROZENPEAS FREE OR ANY FRUIT JUICE OF 200ML. FREE.

    6. ON PURCHASE OF SAFAL JAM 500GM., PICKLE, KETCHUP & RICEGET 200GM. SAFAL FROZEN PEAS FREE.

    7. ON PURCHASE OF TWO MOTHER DAIRY MISRTI DAHI OF MRPRS. 8/- GET A BOWL FREE.

    8. ON PURCHASE OF MOTHER DAIRY ICE-CREAM FAMILY PACKFROM 250ML. TO 1 LITRE GET 50% FREE ON VANILLAFLAVOUR, 25% FREE ON STRAWBERRY & CHOCO CHIPSFLAVOURS RESPECTIVELY.

    LAST SEASON OFFERS WERE FROM 15TH JULY TO 31ST JULY 2009.

    AND DAILY VARIOUS SALES PROMOTIONAL OFFERS ARE BEINGLAUNCHED ON FRESH FRUITS & VEGETABLES.

    RELIANCE FRESH

    THERE IS A VAST RANGE OF PRODUCTS AVAILABLE IN RELIANCE

    FRESH IN COMPARISION TO SAFAL. SO, THE SALES PROMOTIONAL

    OFFERS AVAILABLE HERE ARE 24 X 7 X 365.

    MAINLY THE OFFERS AVAILABLE HERE IS ON STAPLES, FMCG

    PRODUCTS & GROCERY ITEMS. WHEREAS OFFERS ON FRESH FRUITS

    & VEGETABLES ARE APPLICABLE MAINLY ON SEASONAL PRODUCTS

    DURINGS ITS SEASON.

    RELIANCE FRESH ALSO PROVIDES FREE PRODUCTS, DISCOUNTS

    AND OFFERS ON PURCHASE OF VARIOUS PRODUCTS.

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    FOR EXAMPLE:- ON PURSHASE OF 5 LITRE SAFFOLA GROUNDNUT OIL

    GET 1 KG. SUGAR FREE.

    DISTRIBUTION CHANNEL

    SAFAL

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    SAFAL IS HAVING A SMALL PRODUCT WIDTH, WHICH HELPS THE

    MANAGEMENT TO MANAGE THE DISTRIBUTION IN A EASE WAY.

    THEY HAVE THEIR OWN FARMS FROM WHERE THEY BRING FRESH

    VEGETABLE & FRUITS, AND OTHER PRODUCTS ARE BEING

    MANUFACTURED BY THEM AT THEIR UNITS.

    THEN THEY STORE ALL THEIR PRODUCTS IN THEIR OWN COLD

    STORAGE WAREHOUSES OR DEPOTS. THEN THEY SUPPLY IT TO

    THEIR REGIONAL OFFICES FROM WHERE THE PRODUCTS AREDESTINED TO THEIR RESPECTIVE STORES OR OUTLETS.

    THE REGIONAL OFFICE OF SAFAL OF DELHI AND N.C.R. IS LOCATED

    IN RANJITNAGAR & PAPATGANJ.

    The 100% export oriented ultra modern Fruit Processing Plant wasestablished in 1996 at Mumbai, capitalizing NDDB's food processingstrength. All the equipments and technical know-how has beensupplied by Sasib-Manzini Cosmaco SPA of Italy. The plant is locatedin the heart of India's finest tropical fruit growing region thatproduces finest quality mango, banana, guava, papaya, grapes andtomato in abundance.The ultra modern mechanized fruit processingplant has an annual processing capacity of 15000 MTS. There aretwelve ripening chambers having a total capacity of 420 MT.

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    The plant also have a facility to pack fruit pulp in 3.1 KG sterilizedand hermetically sealed aluminum cans @ 1 MT / hr and a platfreezer to instantly block pulp @ 10 MT / hr. The frozenproducts canbe shrink packed before dispatch in cartons. Other facilities in theplant include two tetra pack-filling machines for packing fruit drinks.

    The processing facility has obtained US Food & Drug Administrationregistration. HACCP quality system is followed at every stage. Theunit is ISO9002 certified. The products are Kosher certified. Mumbaiunit is a registered member of SGF, Europe.

    The fruit processing plant at Mumbai is engaged to process andrefine products specially aseptic & frozen purees and concentrates

    from various varieties of finest tropical fruits such as mango,banana, papaya etc. These products can be packed in a plethora ofbulk and small quantities in a wide range of packing materials. Fruitdrinks in Tetrapacks are the other popular consumer products. Theunit has established an office at Rotterdam in Netherlands todevelop market at Europe , America and Asia. The unit enjoys activepresence with all its products in Europe, USA, Canada , Australia,Middle East, Japan, Singapore and Hongkong. The unit also ensureits presence at major International Food/Trade fairs.

    RELIANCE FRESH

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    FARMERS

    CATEGOR

    Y

    FARMERS

    CATEGOR

    Y

    FARMERS

    CATEGOR

    Y

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    HENCE, BY THE ABOVE DIAGRAM WE CAN UNDERSTAND HOWRELIANCE FRESH PURCHASES THE FRESH FRUITS & VEGETABLESFROM FARMERS AND THEN TRANSPORATED TO ITS OUTLETS.

    SHIFT IN WAY OF SHOPPING

    RELIANCE OWN

    LOGISTICS

    RELIANCE

    FRESH

    OUTLETS

    RELIANCE

    FRESH

    OUTLETS

    RELIANCE

    FRESH

    OUTLETS

    PROCESSIN

    G

    UNIT/POINT

    COLLECTION

    POINT/UNI

    T

    FarmersOwnTransportation

    Relia

    nceo

    wnLo

    gistics

    RelianceownLogistics

    Farme

    rsOwn

    Trans

    portation

    RFRF

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    NOWADAYS, PEOPLE ARE CHANGING THEIR WAY OF SHOPPING OFTHEIR PRODUCTS. THEY WANT BENEFIT IN EVERY THING THEY BUY.SO, THERE ARE MANY RETAIL STORE ARE WORKING IN ORDER TOFULFILL THEIR WISHES AND DEMANDS.

    THEY PROVIDE ALL THE PRODUCTS AT ONE PLACE, WHICH SAVESTHE TIME AS WELL AS CUSTOMERS GET THE LUXURY OF BUYING INCLEAN AND AIR CONDITIONED PLACE, INSTEAD OF DIRTY, STINKING& CROWDED PLACE.

    TRADITIONAL MODEL MODERN MODEL

    SALES PROMOTIONAL STRATEGY

    SAFAL

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    Sales Promotional Activity of Safal is very easy and effective incomparision to that of Reliance Fresh because they have limited

    number of product, having a nice brand name.

    In their store or outlet they only keep the products which theyproduce, which is a big advantage of them over Reliance Fresh.

    They promote the entire product according to the costing theyincure in producing them.

    They keep the FREE 100GM. SAFAL FROZEN PEAS OFFER on variousproducts so that people will taste their product and will switch to itlater during off season. Likewise, they play a fair game and alsopromote their own product in their own store.

    RELIANCE FRESH

    Reliance Fresh also had an effective Sales Promotional Strategy.They provide offers and schemes on the products whose profitmargin is more in comparision to other daily products. They alsohave an advantage over Safal is they have a wide range of productswhich customers can easily get like grocery, staples, etc

    They give Oil Free on Big Bottle of Shampoo, Buy Two Get One Free,etc... are few of the nice schemes being implemented by the SalesManagers of the Reliance Fresh over their various stores.

    They also take Feedback of customers to improve their strategy,they also issue Loyalty Card to their regular customer to avail thembetter service with extra offers and schemes. This method hashelped them a lot in increasing the Sales of the store.

    SIMILARITIES IN SALES PROMOTIONAL ACTIVITIES OF SAFAL

    AND RELIANCE FRESH

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    They conduct meeting with the Managers of the stores and outlets,so that they can listen to their views, problems and possiblesolutions. They also conduct Market Research before launching anyproduct so that they would know the views and suggestions. Theykeep CRMs to improve the relationship between company andcustomers. They treat customers warmly and avail them everyservice that they possibly can.

    CONCLUSION

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    Safal is having a less cost efficient store whereas Reliance Fresh is

    fully air conditioned shop which incures a huge running cost.

    Safal concentrates on opening the store in between of societies

    where women can easily come and shop with full safety, and

    Reliance Fresh are opened in lavish places as well as most of the

    stores are located on the main road where there is lot of traffic

    which reduces the freedom of women to shop freely and with full

    safety.

    Safal stores are economic and small, whereas Reliance Fresh have a

    big and high expenditure stores.

    These are the few reasons and points where Safal have a big

    advantage over Reliance Fresh. Currently, Reliance Fresh is

    incurring more loss than of Safal. So, they should concentrate on

    their cost cutting and increase the Sales by introducing more offers.

    Their main motive is to reduce as much cost possible, so that they

    can earn some profit after cutting every cost they bear in their

    outlets.

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    ANYQUERY..?

    ORFEEDBACK

    THANK

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    YOU..!