Upload
harish-gujaran
View
217
Download
0
Embed Size (px)
Citation preview
7/30/2019 Final Project Report-Del Mote (Harish)
1/37
1
PROJECT REPORT
ON
Study on Product Category (Olives and Olive Oil) for Del Monte
FOR
FieldFresh Foods Pvt. Ltd. (Del Monte)
BY
Harish Gujaran
Submitted in Partial fulfillment of requirements for award of Post Graduate
Diploma In Management
7/30/2019 Final Project Report-Del Mote (Harish)
2/37
2
DECLARATION
I hereby declare that the Project titled Study on Product Category (Olives and Olive Oil) For
Del Monte submitted as a part of the study of is my original work. The Project has not formed
the basis for the award of any other degree, diploma, associate ship, fellowship or any other
similar titles.
Harish Gujaran
Place: Mumbai
Date:
7/30/2019 Final Project Report-Del Mote (Harish)
3/37
3
CERTIFICATE
This is to certify that Harish Gujaran has completed the Project Study on (Olives and Olive
Oil) Market share with a case study of Del Monte underthe guidance of Prof. Rubina Dmello
in partial fulfillment of the requirements for the award of Post Graduate Diploma In management
for the academic period 2011-13.
Signature of the Guide Signature of the
Director
Place: Mumbai
Date
7/30/2019 Final Project Report-Del Mote (Harish)
4/37
4
ACKNOWLEDGEMENT
On this opportunity I would like to extend my sincere thanks to my college, Atharva School Of
Business, Mumbai and to Field Fresh Foods Pvt. Ltd., for offering me a unique platform to earn
exposure and garner knowledge in the field of sales and research of premium FMCG products.
This project was a great learning experience and provided me an up close insight of how the
sales & interaction with retailer is done. I am especially thankful to my guide Mr. Jigar Gandhi
for the kind support and guidance that he extended to me throughout the project.
I also want to convey my sincere thanks to Shri Sunil Rane Sir, executive president AtharvaEducation Trust; Bhattacharya, Director of Atharva School Of Business and my college faculty
Prof Rubina Dmello, who has been guiding me throughout the project. She was there to help me
out at all possible situations.
Last but not the least I would like to express my profound gratitude and thanks to each and every
employee of Field Fresh Foods Pvt. Ltd. who knowingly or unknowingly have contributed in
their own ways to the successful completion of this project.
Harish Gujaran
PGDM (Marketing)- 27
ASB, Mumbai
7/30/2019 Final Project Report-Del Mote (Harish)
5/37
5
Executive Summary
The project was aimed at understanding and then analyzing the product category (Olive and
Olive Oil) and the methods in which the company is currently carrying out sales for their Del
Monte range of products. Del Monte, an international conglomerate in food industry has recently
entered the Indian market. While the market potential is huge, the competition is also fierce.
Typical of the FMCG market almost all the major FMCG players wage a price war. Del Monte
products are positioned as premium products. To reach the target segment and convince them of
assured high quality which is the Del Monte promise is a challenging job. The sales and
distribution network is the backbone of any FMCG company. In my project, I started off with the
category study by the usage of perforated sheets as a research material on private vehicles.
Following which I studied the sales model of Del Monte products in Mumbai city focusing on
General Trade outlets which included stand alone super market, Kirana stores, dry fruits outlets
and Chemists. I gave the feedback about the present category status and also gave suggestions
for optimization of sales. The issues with retailers and distributors regarding the products were
reported to company. I was also looking after point-of-sale promotions of Del Monte products at
the supermarkets that I was allotted.
7/30/2019 Final Project Report-Del Mote (Harish)
6/37
6
TABLE OF CONTENTS
SR NO. PARTICULARS PAGE NO.
1. Executive Summary 5
2. Topic
Objective of study
7
3. Research Methodology :
a. Primaryb. Secondaryc. Limitationd. Scope
8
4. About the Industry and Company 9-18
5. About the products 19-21
6. Current Market Status 22
7. Analysis of the study 23-31
8. Recommendations 32-34
9. Conclusions 35
10. Summary 36
11. Bibliography 37
7/30/2019 Final Project Report-Del Mote (Harish)
7/37
7
Topic
The objective of my project was aimed at understanding the product category (Olives and Olive
Oil) and suggest how the company can increase their market share city south Mumbai. Del
Monte is a recent player in the processed foods industry in India. While the market potential is
huge, the competition is also fierce. The competition stems from the fierce price war amongst the
players. Del Monte products are of premium category with emphasis on quality. To reach the
target segment and convince them of assured high quality is a challenge the company has
embarked upon. The sales and distribution network is the backbone of any FMCG company. In
this project, I have studied the Product category considering its market potential, market
competition and retailer and consumers perception. After the analysis of the Product category, Iwas asked to give feedback on Del Montes present market share and also provide suggestions
for optimization of sales. The issues with retailers and distributors regarding the products were
reported to company. We also did market research for getting customer insight for product
category and for Del Monte in that category and other products as well, with the use of
perforated sheet. We found out the reasons why retailer and consumer prefer other competitors
product in South Mumbai. While we promoted Del Monte products at all possible outlets, from
small bakeries to big hypermarkets, my area of focus was on standalone Family malls which
come under the purview of General Trade.
Objectives of Study
Understanding Product category of can Olives and Olive Oil. Understanding Potential and Competition of category in market. Understanding retailer and consumer insight towards category. Finding Del Montes market share and costumers insight. Recommendation for sales optimization.
7/30/2019 Final Project Report-Del Mote (Harish)
8/37
8
Research Methodology:
Primary Research:All the data pertaining information regarding product category werecollected as a part of daily field visits which were extensive and laborious. My daily field visits
includes visiting retailers in different areas from Bandra to Borivali and interacting with
consumer at those retail outlets.
Secondary Research:Other data about the company like Company basic information,
Competitors images and such have been collected through internet. Also the facts and figures
about the FMCG Company have been collected through secondary research.
Limitation :
The study was limited between Borivali to Bandra. Study was also limited to Olives and Olive Oil. Sample size 200 people. Less of awareness about the brand among the customers. Demand of Olives and Olive Oil is quite low. Targeted to premium class customers.
Scope
The study enabled me to experience FMCG market. It also gave experience of other Indian food market
.
7/30/2019 Final Project Report-Del Mote (Harish)
9/37
9
About the Industry and Company
About the FMCG Market in India
The Indian FMCG sector is the fourth largest sector in the economy with an estimated size of
Rs.1,300 billion. The sector has shown an average annual growth of about 11% per annum over
the last decade. Unlike the developed markets, which are prominently dominated by few large
players, Indias FMCG market is highly fragmented and a considerable part of the market
comprises of unorganized players selling unbranded and unpackaged products. There are
approximately 12-13 million retail stores in India, out of which 9 million are FMCG kirana
stores.
India FMCG sectors significant characteristics can be listed as strong MNC presence,
well established distribution network, intense competition between the organized and
unorganized players and low operational cost. Easy availability of important raw materials,
cheaper labor costs and presence across the entire value chain gives India a competitive
advantage.
Products which have a swift turnover and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). FMCG items are those which generally get replaced within a year.
Examples of FMCG commonly include a wide range of repeatedly purchased consumer products
such as toiletries, soap, cosmetics, oral care products, shaving products and detergents, as well as
other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG
may also include pharmaceuticals, consumer electronics, packaged food products etc.
Penetration level and per capita consumption in many product categories is very low
compared to world average standards representing the unexploited market potential.
Mushrooming Indian population, particularly the middle class and the rural segments, presents
the huge untapped opportunity to FMCG players. Growth is also likely to come from consumer
'upgrading' in the matured product categories like processed and packaged food, mouth wash etc.
A distinct feature of the FMCG industry is the presence of international players through their
7/30/2019 Final Project Report-Del Mote (Harish)
10/37
10
subsidiaries (HLL, P&G, Nestle), which ensures innovative product launches in the market from
their parent's portfolio.
Our country has a varied agro-climatic condition which enables to offer extended rawmaterial base suitable for many FMCG sub sections like food processing industries etc. India is
the one of the major producer of livestock, milk, sugarcane, coconut, spices and cashew and is
the second largest producer of rice, wheat and fruits & vegetables. Similarly, India has an
abundant supply of caustic soda and soda ash, the chief raw materials required in the production
of soaps and detergents, which enables the household section of the industry to excel and grow.
The accessibility of these raw materials gives India the locational advantage.
Government Policy
The Government has enacted policies aimed at attaining international competitiveness through
lifting of the quantitative restrictions, reduced excise duties, automatic foreign investment and
food laws resulting in an environment that fosters growth.
Completely export oriented units can be set up by government approval and use of foreign brand
names is now freely permitted.Automatic investment approval (including foreign technology
agreements within specified norms), up to100 per cent foreign equity or 100 per cent for NRI
and Overseas Corporate Bodies(OCBs) investment, is allowed for most of the food processing
sector except malted food, alcoholic beverages and those reserved for small scale industries
(SSI). 24per cent foreign equity is permitted in the small-scale sector. Temporary approvals for
imports for test marketing can also be obtained from the Director General of Foreign Trade. The
evolution of a more liberal FDI policy environment in India is clearly supported by the
successful operation of some of the global majors like PepsiCo in India.
The Indian government has abolished licensing for almost all food and agro-processingindustries except for some items like alcohol, cane sugar, hydrogenated animal fats and oils etc.,
and items reserved for the exclusive manufacture in the SSI sector.
7/30/2019 Final Project Report-Del Mote (Harish)
11/37
11
Quantitative restrictions were removed in2001 and Union Budget 2004-05 further identified 85
items that would be taken out of the reserved list. This has resulted in a boom in the FMCG
market through market expansion and greater product opportunities.
Central and State Initiatives
Various states governments like Himachal Pradesh, Uttaranchal and Jammu & Kashmir have
encouraged companies to set up manufacturing facilities in their regions through a package of
fiscal incentives.
Jammu and Kashmir offers incentives such as allotment of land at concessional rates, 100 per
cent subsidy on project reports and 30 per cent capital investment subsidy on fixed capital
investment upto $63,000. The Himachal Pradesh government offers sales tax and power
concessions, capital subsidies and other incentives for setting up a plant in its tax free zones.
Trends
The boom in various consumer categories, further, indicates a latent demand for various product
segments. For example, the upper end of very rich and a part of the consuming class indicate
small but rapidly growing segment for branded products. The middle segment, on the other hand,
indicates a large market for the mass end products. The BRICs report indicates that Indias per
capita disposable income, currently at $556 per annum, will rise to $1150 by 2015 - another
FMCG demand driver. The spurting the industrial and services sector growth is also likely to
boost the urban consumption demand.
An estimated double-digit growth over the next few years shows that the good times are likely to
continue.
Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the Indian rural
FMCG market is something no one can overlook. Increased focus on farm sector will boost rural
incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure
facilities will improve their supply chain. FMCG sector is also likely to benefit from growing
7/30/2019 Final Project Report-Del Mote (Harish)
12/37
12
demand in the market. Because of the low per capita consumption for almost all the products in
the country, FMCG companies have immense possibilities for growth.
If the companies are able to change the mindset of the consumers, i.e. if they are able to take theconsumers to branded products and offer new generation products, they would be able to
generate higher growth in the near future. It is expected that the rural income will rise in 2007,
boosting purchasing power in the countryside. However, the demand in urban areas would be the
key growth driver over the long term.
The increase in the urban population, along with increase in income levels and the availability of
new categories, would help the urban areas maintain their position in terms of consumption.
At present, urban India accounts for 66% of total FMCG consumption. However, rural India
accounts for more than 40% consumption in major FMCG categories such as personal care,
fabric care, and hot beverages. In urban areas, home and personal care category, including skin
care, household care and feminine hygiene, will keep growing at relatively attractive rates.
Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term
growth categories in both rural and urban areas.
Industry Analysis
A. Key Success Factors:
a) Distribution-related KSFs:
A strong network of distributors Efficient and responsive supply chain Ability to secure favourable display space on retailer shelves Robust relationship with retailersb) Marketing-related KSFs:
Strong brand recall Motivated Sales team well equipped with the product knowledge
7/30/2019 Final Project Report-Del Mote (Harish)
13/37
13
Point of Sale advertising Special offers and bulk buy deals for retailers Attractive product packagingc) Other types of KSFs:
High product quality standards Product innovation capabilities with respect to new product launch and time to marketd) Industrys Dominant Features:
Industry growth rate: The industry is growing at the CAGR of 9%. Number of rivals: In certain product categories, such as, ketchup and sauces, the industry is
dominated by a few large companies but overall it is fragmented into many small and regional
companies.
Number of buyers: Market demand is fragmented among several buyers across the country andhence buyers do not enjoy much of bargaining power
Degree of product differentiation: Product of other companies is less differentiated leading toheightened price competition.
Product Innovation: Development of new and differentiated products is important
B. Industry Driving Forces:
Booming modern retail Increasing globalisation of industry leading to several foreign companies foraying into India Changes in consumer behaviour marked by increased health consciousness and adoption of
urban and outgoing lifestyle
Burgeoning middle class with increased purchasing power
7/30/2019 Final Project Report-Del Mote (Harish)
14/37
14
About the Company
FieldFresh Foods Pvt Ltd.:
An Indian business giant and a Philippine conglomerate have come together to create FieldFresh
Foods Pvt. Ltd.
FieldFresh Foods Pvt. Ltd. is a venture between Bharti Enterprises and Del Monte Pacific
Limited, to offer fresh and processed fruits and vegetables in the domestic as well as
international markets, including Europe and the Middle East.
Brand Del Monte has 118 years of rich international heritage during which it has been
synonymous with quality and taste. The brand originated in the US and is now available all
across the globe. The Del Monte range of branded processed food products includes Fruit drinks,
Ketchup & Sauces, Packaged Fruits and the Italian Range consisting of Pasta, Olive Oil and
Olives/Jalapenos and a Culinary range which is aimed at HORECA, Foodservices and QSR
industries.
Del Monte was brought to India in 2007 by a joint venture between Bharti Enterprises and Del
Monte Pacific Ltd. The JV is called FieldFresh Foods Pvt Ltd.
Bharti Enterprises is one of India's leading business groups with interests in telecom, agri
business, financial services, retail and manufacturing. Del Monte Pacific Ltd, headquartered in
Manila, Philippines, is engaged in the production, marketing, and distribution of Del Monte
products in the select Asian markets.
Del Monte Pacific also holds exclusive rights to produce and distribute food and beverage
products in the Indian subcontinent.
The company will produce, market and distribute farm fresh products that address the needs of
todays consumer. With a range of delicious and superior tasting products, FieldFresh Foods Pvt.
Ltd., looks forward to becoming one of the most trusted providers of premium quality fresh farm
products, processed foods and beverages.
7/30/2019 Final Project Report-Del Mote (Harish)
15/37
15
With the synergy between Bhartis dynamism and Del Montes heritage of over 100 years, the
company aims at becoming a leading player in the foods & beverages segment in India.
FieldFresh Foods Pvt Ltd besides offering Del Monte range of Food & Beverage products, alsosources and markets fresh produce for domestic as well as export markets. The company's vision
is to be the most trusted and innovative provider of branded fresh fruits, vegetables and
processed food products in India.
Bharti Enterprises:
Indias leading business group, Bharti Enterprises has interests in telecom, agri-business,
insurance & retail. With over 100 million customers, Bhartis flagship unit, Airtel Ltd., is the
countrys leading private sector provider of telecommunication services.
Del Monte Pacific Limited:
Based in Philippines, the company is engaged in the production, marketing, and distribution of
premium branded processed foods and beverages. Del Monte Pacific also holds exclusive rights
to produce and distribute food and beverage products in the Indian subcontinent.
http://www.delmontepacific.com/http://bharti.com/http://www.delmontepacific.com/http://bharti.com/7/30/2019 Final Project Report-Del Mote (Harish)
16/37
16
Quality Excellence at FieldFresh
FieldFresh ensures best-in-class facilities, business practices and quality standards through
technological innovations, international quality management systems and food safety initiatives.
Our Quality Management System (QMS) operates on:
Right First Time Zero Tolerance
These are achieved through critical interventions in processes wherever applicable, so that only
top-class quality products reach the end consumers.To pave the way in farming practices, the
company has complied with Global GAP guidelines not only in company managed farms but
across all partner farms. The growing partners are spread across the following states:
Punjab - Baby Corn, French Peas Maharashtra - Sweet Corn & Baby Corn Gujarat and Andhra PradeshMangoes
The state-of-the-art laboratory facilitates physical, chemical and microbiological analysis of the
raw materials and packaging materials through the entire manufacturing cycle. Continuous focus
on packaging development and innovative solutions has enabled FieldFresh to meet the superior
packaging requirement of customers.
At FieldFresh, food safety and consumer health is the top most priority. This is clearly reflected
in the manufacturing facility and packhouse being certified under:
Food Safety Management Systems (FSMS) (ISO:22000:2005) BRCBritish Retail Consortium
7/30/2019 Final Project Report-Del Mote (Harish)
17/37
17
Environment Health & Safety (EHS) is an integral part of FieldFresh business practices. Focus
on EHS is driven through:
Process Mapping Regulatory and Food Safety Audits Reviews of Certifications The Technical team is also focused on critical processes and development for new initiatives on
new products.
Certifications
The Good Agricultural Practices and QMS have enabled us to achieve highest levels of standards
and certifications.
Exports
FieldFresh Foods has focused on building a robust Fresh Exports business model in vegetables-primarily Baby Corn and Sweet Corn. Some of the other greens exported are French Beans and
Green Chillies. All farms, where both Baby Corn & Sweet Corn is grown are Global GAP
certified farms.
Agri Centre Of Excellence (ACE)
FieldFreshAgri Centre OF Excellence (ACE) at Ladhowal, Ludhiana, Punjab was inaugurated byDr. Manmohan Singh, Honourable Prime Minister of India on 27th September, 2006. ACE
comprises of 300 acres of farming, developed for open and protected cultivation.
7/30/2019 Final Project Report-Del Mote (Harish)
18/37
18
The activities that have gone into making ACE a centre of excellence are:
Partner Farming Farmer Training Open Cultivation Crop Development 132 acres of Micro Irrigation 42 acres of Spanish designed protected cultivation Bell Peppers and Cherry Tomatoes grown in Glass Houses Chilly Nursery in Green Houses Cauliflowers in Net Houses 24 x 7 technical support to the partner farmers
A state-of-the-art processing facility and pack-house has been set up with vegetable processing
capacity of over 250 tons and a cold-storage capacity of 500 metric tons built over 7500 sq.
metres. The facility takes pride in the following certifications:
GLOBALGAP Certified Operations ISO 22000 Certified Packhouse BRC (British Retail Consortium) Certification for the Packhouse
7/30/2019 Final Project Report-Del Mote (Harish)
19/37
19
About the Products
The Del Monte product range includes:
Pastas and Pasta Sauces: Authentic Italian Pastas in various shapes, Spagehetti, PenneRigate, Spirali, Chifferi Rigati, Spirali Tricolor, Farfalle, Penne wholewheat and Lasgne.
Pasta Sauces are also in delicious flavors Arrabbiata, Tomato & Basil, Siciliana and Veg
Bolognese.
Fruit drinks: Pineapple fruit drink with pulp, Pineapple Orange fruit drink, Mango fruitdrink, Four seasons fruit drink (Pineapple, Mango, Orange and Guava), Green Apple and
Orange. It also includes pet bottles of Mango and Four season.
7/30/2019 Final Project Report-Del Mote (Harish)
20/37
20
Packaged fruits: Pineapple Slices, Pineapple Tidbits, Mango Pulp(Sweetened), FiestaFruit Cocktail, Peach Halvesand Californias Prunes.
Corn: Regular and Sweet Corn
7/30/2019 Final Project Report-Del Mote (Harish)
21/37
21
Ketchup & Sauces: Tomato Ketchup, Zingo & Twango Sauces
Italian Range: Range of dry Pasta, table Olives and Olive Oil
7/30/2019 Final Project Report-Del Mote (Harish)
22/37
22
Current Market status of Olives and Olive Oil between Bandra to Borivali.
The current market of Olives and Olive Oil is on a growing trend. These products are considered
to be premium since only upper middle class and high class prefer using Olives and Olive Oil.
The sale of such products depends upon the consumers buying behaviour and consumer decision
making. The retailers who were interviewed during the primary research replied that the sale of
olives and olive oil is quite slow as compared to other products in the market. The reason was
mainly because of the price of Olive oil. With increasing purchasing power and a rising middle
class, the fast moving consumer goods (FMCG) industry is posed to grow dramatically. Olives
and Olive Oil being a premium product has slow movement in market but since the disposable
income has increased, people will start consuming these products.
7/30/2019 Final Project Report-Del Mote (Harish)
23/37
23
How many Customers in India use Olives and olive Oil?
When interviewed to around 200 consumers they gave is this answer that25 %peoplesaid that
they prefer using olives and olive oil whereas 75 % people either use it once in a while or do not
use in at all.
25%
75%
Sales
Use Do not Use
7/30/2019 Final Project Report-Del Mote (Harish)
24/37
24
Have you tried any of the below olives and olives oil?
a. Figaro b. Borges c. Farrell d. Del Monte e. Others
There are many brands of olives and olive oil available in the market. Few of them are listed
below:
a. Figaro20 %b. Borges25 %c. Farrell10 %d. Del Monte20 %e. Others -25 %
20%
25%
10%
20%
25%
Column1
Figaro Borges Farrell Del Monte Others
7/30/2019 Final Project Report-Del Mote (Harish)
25/37
25
On what basis were the products selected by the customers?
This question was quite important from the customers point of view. It was necessary for us to
know on what basis did the customers buy the product. 20 % people felt brand is important, 15
% people felt variety is essential, 30 % people go for quality and the remaining 35 % would
only buy during offers.
20%
15%
30%
35%
Column1
Brand Variety Taste/Quality Offers
7/30/2019 Final Project Report-Del Mote (Harish)
26/37
26
Purpose of buying Olive Oils?
There are many advantages of using olive oils. Some use it for cooking purposes where as some
use it for massage purposes. Olive oil has many benefits. When the customers who use olive oilwere interviewed around 65 % of the people prefer using it for cooking and the rest 35 % use it
for massage purposes.
65%
35%
Purpose
Cooking Massage
7/30/2019 Final Project Report-Del Mote (Harish)
27/37
27
On what basis retailer keep the product?
Margin- 35%
Service- 10%
Demand- 40%
Relationship- 15%
35%
10%
40%
15%
Sales
Margin Service Demand Relationship
7/30/2019 Final Project Report-Del Mote (Harish)
28/37
28
Age Group:
As per our research, we noticed that customers in the age group 30 to 35 and
above 35 consumed the maximum amount of olives and olive oil. Where as
customers in the age group 25 to 30 consumed 15%.
Age group 15 to 20 and 20 to 25 consumed 10%.
0%
10%
10%
15%
30%
35%
Age Group
Below 15 15 to 20 20 to 25 25 to 30 30 to 35 Above 35
7/30/2019 Final Project Report-Del Mote (Harish)
29/37
29
Annual Individual Income:
As we targeted general trade the most we noticed that customers lying in the
income group between Rs. 5 to Rs. 10 L and below Rs 5 L consumed the most.
40%
35%
15%
10%
Income
below Rs.5 L Rs. 5 to Rs. 10 Rs. 10 to Rs. 15 Rs. 15 & above
7/30/2019 Final Project Report-Del Mote (Harish)
30/37
30
Who Influences the purchase of these products?
As it is clear by looking at the pie diagram, spouse and parents are the most
influential people in buying olives and olive oil with 35% and 45% respectively.
35%
10%
45%
10%
Column1
Spouse Children Parents Friends
7/30/2019 Final Project Report-Del Mote (Harish)
31/37
31
Have you ever tried Del Monte products?
As per customers interviewed, 20% people were aware of Del Monte where as 80%
were unaware about the brand.
This figures were known by interviewing around 200 retailers between Bandra to Borivali&
asking them the question which is given above.
Competition in the category
Figaro Borges Farrell Olivio Bertolli Ibero Leonardo R & S Olive oilve
20%
80%
Yes No
7/30/2019 Final Project Report-Del Mote (Harish)
32/37
32
RECOMMENDATIONS
Having worked primarily with general Trade, and by studying the product category, the
recommendations I gave to the company were primarily aimed at optimization of the general
trade sales. However, certain ideas can be successfully implemented in modern trade as well.
1. The Co. should stress upon the brand awareness and brand promotion activities topopularise the brand among the end consumers. It can be done using various advertisement
means such as Tv ads, print media etc. The TV ads would be very expensive to company but the
print media such as hoarding or banners can be placed in the retail outlets or nearby where it gets
maximum consumer impressions & the company should also concentrate on ground level
promotions which directly comes in contact with retailers and consumers.
2. The company can also adopt the quick selling technique which would push the sales, likecompany can promote its product by offering promotional offers to their customers for e.g with a
purchase of 1litre olive oil customers would get 1litre free which would impact the sales of olive
oil and with the help of that customer will get to know about Del Monte which is a positive sign
for Del Monte as a whole as it is a newly brand in the market with around 57variants &
competition is also vast with highly market potential.
3. The company can also provide free trail packs of can fruit drink or pet bottle on theirother premium product such as olive oils, in that case people will get experience of top quality
can fruit drink and its impact would be the product awareness of can fruit drink.
4. The company should also pressurise on the service offering to retailer and shouldincrease their market reach with help of an efficient sales team.
5. A well planned route map would considerably enhance the efficiency of the salesmen,and ensure that orders are evenly placed throughout the week.
7/30/2019 Final Project Report-Del Mote (Harish)
33/37
33
6. Special training to be imparted to salesmen to enable them to perform better-
In convincing the new as well existing retailers to buy more and more of Del Monteproducts across range.
Exhaustive knowledge of the Del Monte brand and its products should be given to them.They should be shown a ppt. on that in their regional language. This knowledge will in-turn
enables them to explain to retailers on the products USP.
Sales men should be given thorough knowledge of competitors product as most of thequestions they faced revolved around this only.
The Company should give tasting samples of the items to the sales men, so theythemselves understand the product and can more confidently pitch the products to the retailers.
7. The Sales Officer should at random go on rounds with the sales men to monitor the fieldactivities and also talk to retailers about the issues they are facing, if any and should update them
on the company plans and new launches. This will improves the Co.s image in the mind ofretailers and also the SO will know the prevailing issues and the proficiency of the sales men.
8. The reimbursement for the sales man should be performance based. Break up the salaryinto fixed pay and variable pay. Give the petrol allowance also variable. The benefit of this
would be greater motivation for the salesmen to perform and deliver results.
9. Sales men should also be asked and encourage to visit new stores and there should be atarget with respect to appointment of new retailers as buyers.
10. Build strong relation with retailers and build confidence in him through various methodslike promotional tours, extensive sampling etc. This is crucial since the company is new and the
products are just increasing their presence.
7/30/2019 Final Project Report-Del Mote (Harish)
34/37
34
11. The salesman should firstly check the demand of our product in that retail shop bykeeping little quantity at the start & then after knowing the demand he should keep the quantity
as per the demand so that the stock doesnt go waste due to the reason of expiry, physical
damage or some other reasons.
12. The company managers should constantly check what schemes or margins the salesmanare giving to the retailer are according to the company standards or not.
13. The company should have a proper policy of giving margins for constant period becausewhen the salesman gives higher margin to the retailer at the end of the month only to fulfil the
target what he was given so this accounts a serious problem when the same salesman goes again
to take order & he tries to fluctuate with the margins to make it less so this creates a bad image
of the company or a brand on that retailer.
7/30/2019 Final Project Report-Del Mote (Harish)
35/37
35
Conclusion
In my project, I was entrusted to study Product category of Olives and Olive Oil especially
focusing on the General Trade channel. I gave the company feedback on Product category
considering its market potential, market competition and retailer and consumers perception.
After the analysis of the Product category, I also gave feedback on Del Montes present market
share and also provide suggestions for optimization of sales. The issues with retailers and
distributors regarding the products were reported to company. We also did market research for
getting customer insight for product category and for Del Monte in that category and other
products as well. We found out the reasons why retailer and consumer prefer other competitors
product. Having learnt of the good response from the customers who praised the high quality ofthe products and its good taste, company is expecting to capture a huge market share. Presently
the chunk of companys profit is coming from Modern trade divisions which include big
departmental stores. However the company is also banking upon the general trade channels to
provide for a substantial share in the overall sales pie.
7/30/2019 Final Project Report-Del Mote (Harish)
36/37
36
Summary
This project was aimed at understanding the product category (Olives and Olive Oil) and
suggests how the company can increase their market share for Del Monte. Currently the majority
of sales come from Modern Trade. However with the increase in awareness and the companys
investment in promotional activities, the company is expecting greater returns from general trade
in terms of greater sales share. The company is also facing issues in maintaining distributors but
with the increasing sales, they believe this problem will be solved soon. Company is involved in
a process of building relationship with retailers for the same they have implemented the retailer
loyalty program in which the retailers are provided with extra margin and schemes and asked to
stock Del Monte products reducing the competitors product and a trend statistic is beingmaintained now as to how strong have been the effect of promotional activities like
merchandizing, wet sampling activity etc. Customers had given a feedback that they wanted to
first try small quantity of these products before actually buying big volume. Thus Company has
launched sachets and small bottles of all its variant of ketchups and they also have 250g small
packs of pasta which no other Italian brands has and the company has also the pet bottle fruit
drink in 2 flavours like mango & mixed fruit which no other imported brand is having in the
market.
7/30/2019 Final Project Report-Del Mote (Harish)
37/37
Bibliography
http://www.fieldfreshfoods.in/
http://farway.trustpass.alibaba.com/product/128174056-103188257/Rani_Juice.html http://www.ninemilliondollars.com/2012/05/why-you-should-invest-in-fmcg-sector-
funds
http://www.iseindia.com/ResearchPDF/FMCG_Update1.pdf
http://www.fieldfreshfoods.in/http://www.fieldfreshfoods.in/http://farway.trustpass.alibaba.com/product/128174056-103188257/Rani_Juice.htmlhttp://farway.trustpass.alibaba.com/product/128174056-103188257/Rani_Juice.htmlhttp://www.ninemilliondollars.com/2012/05/why-you-should-invest-in-fmcg-sector-fundshttp://www.ninemilliondollars.com/2012/05/why-you-should-invest-in-fmcg-sector-fundshttp://www.ninemilliondollars.com/2012/05/why-you-should-invest-in-fmcg-sector-fundshttp://www.ninemilliondollars.com/2012/05/why-you-should-invest-in-fmcg-sector-fundshttp://www.ninemilliondollars.com/2012/05/why-you-should-invest-in-fmcg-sector-fundshttp://www.iseindia.com/ResearchPDF/FMCG_Update1.pdfhttp://www.iseindia.com/ResearchPDF/FMCG_Update1.pdfhttp://www.iseindia.com/ResearchPDF/FMCG_Update1.pdfhttp://www.ninemilliondollars.com/2012/05/why-you-should-invest-in-fmcg-sector-fundshttp://www.ninemilliondollars.com/2012/05/why-you-should-invest-in-fmcg-sector-fundshttp://farway.trustpass.alibaba.com/product/128174056-103188257/Rani_Juice.htmlhttp://www.fieldfreshfoods.in/