Pavan Sip Phase 2Business Optimization in Small Medium Enterprise

Business Optimization

IBA : Academic purpose only Sai Pavan Page 0 of 54

A

Project Report

On

“Business Optimization in Small Medium

Enterprise”

At

Chantilly Group Pvt. Ltd

Submitted in the partial fulfillment of the requirements

of

Post Graduate Diploma in Management

At

Indus Business Academy

Under the esteemed guidance of

Dr.Sowmya (Prof IBA)

&

Raj (Company Manager)

Submitted By

B.V.Sai Pavan





Certificate

This is to certify, that Mr. B.V.Sai Pavan is a bonafide student of Indus

Business Academy, Bangalore and is presently pursuing a Post Graduate

Diploma in Management.

Under my guidance, he has submitted his project report titled “Study on Small

Medium Enterprises” in partial fulfillment of the requirement for the summer

internship project during the Post Graduate Diploma in Management.

This report has not been previously submitted as part of another degree or

diploma of another Business School or University.

Dr. Subhash Sharma,

Dean,


Laxmipura, Thataguni Post

Kanakapura Main Road,

Bangalore – 560 062,

India.

.



Certificate

This is to certify, that Mr. B.V. Sai Pavan is a bonafide student of Indus

Business Academy, Bangalore and is presently pursuing a Post Graduate


Under my guidance, he has submitted his project report titled “Business

Optimization in Small Medium Enterprise” in partial fulfillment of the

requirement for the summer internship project during the Post Graduate


This report has not been previously submitted as part of another degree or

diploma of another Business School or University.

Dr.Sowmya,

Professor,





India.



Student Declaration

I, B.V.Sai Pavan, the undersigned, a student of Indus Business Academy,

Bangalore, declare that this project report entitled “Business Optimization in

Small Medium Enterprise” submitted in partial fulfillment of the requirement

for the summer internship project during the Post Graduate Diploma in

Management, a prestigious Post Graduate Diploma awarded by Indus Business

Academy, Bangalore.

This is my original work and has not been previously submitted as a part of

another degree or Diploma of another Business school or University.

The findings and conclusions of this report are based on my personal study and

experience, during the tenure of my summer internship.

B.V.Sai Pavan





India.



Acknowledgement

It has been said “He who teaches us anything which we knew not before is

undoubtedly to be reverenced as a master” a master that not only shows us what

is right but also teaches how things should be done in the right manner.

Gaining Knowledge at Chantilly Group Pvt. Ltd was an enriching experience. It

not only consolidated my existing disciplinary knowledge but also gave me

much required company management exposure took.

I take this opportunity to thank Mr. Raj (Company Manager) for his constant

guidance throughout the project.

I would also like thank all the executives & employees who shared their

knowledge and experience with me throughout my project.

I express my sincere gratitude to Dr.Soumya(prof), my internal guide, Indus

Business Academy.

I would also like to thank Indus Business Academy for giving me the platform

to gain practical exposure apart from the regular curriculum and to experience

life from its near distance.

B.V.Sai Pavan


Bangalore.



Table of Contents

Abstract. .................................................................................................................................................. 7

Introduction ............................................................................................................................................ 8

Industry Profile ........................................................................................................................................ 9

Company Profile .................................................................................................................................... 14

Organization structure .......................................................................................................................... 27

Roles ...................................................................................................................................................... 28

Findings ................................................................................................................................................. 51

Recommendations ................................................................................................................................ 52

Bibiliography ......................................................................................................................................... 53



Abstract.

Chantilly Group was founded in 2006 by Mr. Sandeep Kotecha. The group

follows a B2B business model and is into the business of selling packed food

products, beverages, juice, Chocolates etc., through Vending Machines in campuses

of corporates and colleges. Since inception, the company has installed over 90

Vending Machines at 30 different campuses. The project title assigned is Small

Business Optimization which is concerned right from marketing, Creating leads,

Operations, Inventory management, Vendor management, Meeting with customers,

Taking feedback from customers. And my SIP of 3 months were divided in to three

phases

1. Taking feedback of end user customers regarding vending machines

2. Generating leads for new vending machines

3. Solving the problems for less utilized machines



Introduction

Chantilly supplies a 100% imported combination vending machine that can

vend both snacks and drinks. The machines are of commercial quality and fully

automatic. The vending machine is extra-ordinarily compact and reliable due to the

use of highest quality components. The machine has over 30 selections, and can

vend a combination of snacks and drinks, including tetra packs and cans. All drinks

will be chilled and the snacks kept around 12 degrees.

The vending machines will provide the staff with a handy snack or drink. This is very

useful outside of normal working hours where canteen facilities are limited or when

staff just want to grab a quick snack. Vending machines offer convenience,

competitive pricing, and product availability in locations that cannot support a store.

The Chantilly group through its active network of dedicated employees installs

vending machines to the prospective clients which offers convenient ongoing service

to staff members. Vended goods are available 24 hours a day and machines can be

sited just where you want them, 24/7.

It offers one of the broadest portfolios of machines in the industry. Chantilly have

machines from many of the top market leaders such as N&W Global Vending,

Azkoyen, Crane, etc. Independence of any vending machine manufacturer allows us

to provide an extensive choice of vending machines which meets your requirements.

The focus is to provide the business with a total solution and NOT on selling

machines. The machine accepts Indian currency and gives change.

Benefits

24/7 Service

Time Savings

Change Capability

Hygiene

Running a catering service on 24/7 is very expensive.



Industry Profile

The Food & Beverage Service Industry

A brief description of the food & beverage service industry, its various sections and

types.

The food & beverage industry is usually defined by it output of products, to satisfy the

variousdemands of food & drinks of people. But it doesn’t include the manufacturing

of food & drink and its retailing. In today’s world, the food & beverage service industry

has expanded a lot and nowadays; it is serving more than 100million meals per day.

It has spread across all walks of life. Hotel, restaurants, industrial canteen, hospital

canteen, railway, airways, all are now part of food & beverage service industry.

The basic function of this industry is to serve food & drink to people, to satisfy their

various types of needs. The main aim is to achieve customer satisfaction. The

needs that customer might be seeking to satisfy are:

Physiological: the need of special food items

Economic: the need for good value for the price paid

Social: a friendly atmosphere, to express feelings frankly

Psychological: the need for enhancement of self‐esteem

Convenience: the desire for someone else to do the work.



These various needs play a major role in deciding the factors responsible for

defining the different type of service methods in Food & Beverage service industry.

The service of food and beverage may be carried out in many ways depending on a

number of factors:

The type of establishment

The type of customer to be served

The time available for the meal

The turnover of customer expected

The type of menu presented

The cost of meal served

The site of establishment

Food & beverage service can also be viewed from the customer’s

perspective, Essentially, the customer enters a food service area, orders or selects

his/ her choice and then is served (the customer may pay either at this point or later).

Food and beverages are then consumed, following which the area is cleared.

Broadly we can categories the service methods in five types:

Table Service

Assisted service

Self‐ service

Single point service

Specialized or in situ service



Five forces analysis

Competitors in Industry

•Changing prices

•Improving product differentiation

•Creatively using channels of distribution

Potential new Entrants

•New companies who may start the same business

•Physical stores that may install Vending Machines

Customers •Companies Employees

•College Students

Substitutes

• Coffee and Tea Vending machines

•Shops in company campus

Suppliers

•Companies

•Wholesalers



Analyzing Food and Beverage Industry

Porter’s 5 Force Model gives an understanding to industry environments and

its competitive advantages. Porter’s FIVE FORCE MODEL provides systematic

review of the organizations’ competitive advantage position at both the corporate and

industry level. The use of five force model provides for the systematic review of the

organization’s competitive position in the industry as well as in the business

environment. It is a framework for the industry analysis and business strategy

development invented by Michael E. Porter in 1979.

Attractiveness of the market and the competitive advantage of the food and

beverage organization in that market can be obtained through Porter’s five force

model. Attractiveness refers to the profitability of the industry. An unattractive

industry means the organization cannot make required profit.

Three of the five forces refer to the external sources, while the reminders are

internal factors. All these forces are micro-environment factors that are close to the

company and affecting the ability to make profit. Changes in any of these forces,

requires a food and beverage organization to re-assess the market place.

The forces in the five force model are:

Industry competitors – usually the competitor in the market brings down the profit of

your food and beverage organization. In pursuing the competitive advantage the firm

can take the following strategies

Changing prices

Improving product differentiation

Creatively using channels of distribution

Threat of substitute products – in the porter’s five force model the threat of

substitutes refers to the products in other industries. As more substitutes are

available, customers will have more alternatives. Threat of substitutes comes from

outside the industry. For example, the introduction of aluminum cans created a threat

in glass bottle industry. The food and beverage managers must be aware of such

kind of substitute products available and adjust the way business is run. Customers

choosing McDonalds rather than a fine dining restaurant are an example of threat of

substitutes.



Buyer power – this exists when there is a few buyers and more suppliers. In such

cases the buyer put the price. Buyers are the customers of the food service

operation. A strong bargaining power of buyers will make it easier for buyers to

attempt to force the price down, whilst at the same time demanding better quality.

Suppliers - suppliers provide the materials and other stocks for the business. The

bargaining power of suppliers tends to be powerful in the following conditions;

They operates as a cartel

Where the switching costs are high, for example, switching from one software

company to another.

Power is high where the brand is powerful, e.g. Pizza hut,

Possibility of supplier integrating forward, e.g. brewing company buying bar.

Customers are fragmented, and no bargaining power, e.g. few restaurants in remote

places, so that supplier can demand the price of raw materials.

Potential entrants – they are the new organizations, which may threaten the business

of existing organizations within the market. The barriers to entry into the market are

the factors that might deter new operations. They include;

Capital cost of entry (e.g. machinery and building)

License requirements and govt. policy

The business managers should be aware of the micro and macro environment to be

in the forefront of the competition. Understanding the corporate environment is

essential to be equipped face the competition.



Company Profile

Introduction

Chantilly Group Pvt. Ltd. is an automated vending machine company. It is a purely

marketing company which means that it does not manufacture the vending machines; it just

imports the machines from N&W Global Vending, Azkoyen, Crane, etc. and provides the

services to various companies. It is currently located in Bangalore and provides the services

to many companies only in the region of Bangalore. It was started in the year 2006 and has

been in business since then.

A vending machine is a machine which dispenses items such as snacks, beverages,

alcohol, cigarettes, lottery tickets, cologne, consumer products and even gold and gems to

customers automatically, after the customer inserts currency or credit into the machine

The company provides the vending machines on the rental basis and offers variety of snacks

and drinks. It provides wafers, namkeens, biscuits, noodles, cakes, chocolates, various

carbonated drinks, juices and healthy drinks. The company provides these products on MRP

and does not overcharge.

The vending machines were targeted towards the corporates, schools and colleges which

really enable them to have a taste and feel of luxury and status. The idea is to provide

service in the form of food and beverage where people just have to pay in the machine and

take the desired product. It also gives the customer a very good feel taking out the desired

product in lightning fast time saving their energy and reducing their waiting time.

Competitors

The company being a start up with a unique product doesn’t have any competitor as of now

so the probability with such network of customers and whole market to capture is very high.



About Vending Machines

A vending machine is a machine which dispenses items such as snacks, beverages,

alcohol, cigarettes, lottery tickets, cologne, consumer products and even gold and

gems to customers automatically, after the customer inserts currency or credit into

the machine.

History

The first reference to a vending machine is in the work of Hero of Alexandria, a first-

century engineer and mathematician. His machine accepted a coin and then

dispensed holy water. When the coin was deposited, it fell upon a pan attached to a

lever. The lever opened a valve which let some water flow out. The pan continued to

tilt with the weight of the coin until it fell off, at which point a counterweight snapped

the lever up and turned off the valve.

Vending machines became commonplace during the industrial revolution. The first

modern coin-operated vending machines were introduced in London, England in the

early 1880s, dispensing post cards. The first vending machine in the U.S. was built in

1888 by the Thomas Adams Gum Company, selling gum on New York City train

platforms. The idea of adding games to these machines as a further incentive to buy

came in 1897 when the Pulver Manufacturing Company added small figures, which

would move around whenever somebody bought some gum from their machines.

This idea spawned a whole new type of mechanical device known as the "trade

stimulators". The birth of slot machines and pinball is ultimately rooted in these early

devices.

In December 1970, Ussery Industries of Dallas, Texas at its Dallas convention

displayed its "talking" vending machine, the Venda Talker. With insertion of a coin,

the machine said "thank you" and added a one-liner voiced by comic Henny

Youngman.



Mechanism

After paying, a product may become available by:

•The machine releasing it, so that it falls in an open compartment at the bottom, or

into a cup, either released first, or put in by the customer, or

•The unlocking of a door, drawer, or turning of a knob.

Some products need to be prepared to become available. For example, tickets are

printed or magnetized on the spot, and coffee is freshly concocted. One of the most

common form of vending machine, the snack machine, often uses a metal coil which

when ordered rotates to release the product.

The main example of a vending machine giving access to all merchandise after

paying for one item is a newspaper vending machine (also called vending box) found

mainly in the U.S. and Canada. It contains a pile of identical newspapers. After a sale

the door automatically returns to a locked position. A customer could open the box

and take all of the newspapers or, for the benefit of other customers, leave all of the

newspapers outside of the box, slowly return the door to an unlatched position, or

block the door from fully closing, each of which are frequently discouraged,

sometimes by a security clamp. The success of such machines is predicated on the

assumption that the customer will be honest (hence the nickname "honor box"), and

need only one copy.

Fairs

Every two years in September the European Vending Industry presents their

innovations at the trade fair EuVend in Cologne, Germany.

Types:-

Bulk candy and gumball

Cigarette

Snacks and drinks

Coffee and tea

Stationery

Ice cream

Instant noodles

Automated retail machine



Coin operated binoculars

Books

Photo booth

Fast food

What we use:

Chantilly group is using Snacks and Drinks vending machine. There are three types

of Snacks and Drinks vending machines:

1. AP113 H/C Snack Machine

2. Shoppertron 431 Machine

3. Necta Snaky Machine

1. AP113 H/C Snack Machine:

SPECIFICATION:

Dimensions:

• Height: 72"

• Width: 38 7/8”

• Depth: 35“

Weight:

• Weight: 700 lbs.; 800 lbs. with chiller unit

Electrical:

• Power Draw: 115V 60Hz 3A (CSA & UL

Listed). Optional 220/240V 50Hz for export.

Capacity:

• Capacity: 5-6-7 Shelves; Up to 70 Selections; 310-1261 items, including gum and

mint dispenser.



2. Shoppertron 431 Machine

Specifications

Dimensions:

• Height: 1830 mm (72 in.)

• Depth: 850 mm (33.5 in.)

• Width: 968 mm (38.13 in.)

• Weight: 345 kg (760 lbs.)

Electrical Services

• Voltage: 220/240V AC

• Frequency: 50 Hz

• Current Rating: 6 amps (max)

• Refrigeration Unit: 220/240V - 1/2 H.P.

Refrigerant: R134A CFC Free

Temperature Control:

• Operating temperature controlled by

electronic sensor at 4°C

• Sales function closes down if temperature reaches 7°C



3. Necta Snaky Machine

Specifications

Configuration: -All snacks / Snacks +

Cans & Bottles

User Interface: -Numeric selections

No. of selections: - Up to 36

No. of trays: - Max. 6

Max no. of selections per tray:- 18

Protocol: - Executive – MDB

Height: - 1700 mm

Width: - 713 mm

Depth: - 870 mm

Depth with door open:- 1360 mm

Weight: - Approx. 200 kg

Voltage: - 230 V

Frequency: - 50 Hz



SWOT Analysis

Strength • No competitor

• Technology

• 24/7 Service

• Below MRP

• Orgnizational customers

• Promotion of the machine is not required at current stage

Weakness • People hesitatant to use new

technology

• Technical issues related to machines

• Limited products

• Delays in refiling the machines

Threats •Coffee and Tea machines as

competitor

Opportunities •Expantion of business

•Capturing the existing market, a major part of which is held by retailers

•Chantilly plans to Introduce new product range which will include fast food products (eg. sandwich, Samosa, burgers etc.)



Products serve:

Operation process of Company

Incoming Stock

Check all the item according to Invoice form

Check the Quality, Quantity, Dates

Entire in Stock inward checklist

form

Take signature and contact of driver

Check 1: Operations boy

and verify

Check 2: Admin person and verify

Paid payment to supplier

Entire serial number for items in register according

to Quantity

Entry that serial number on each

item

Arrange items in stock room after

old stock according to serial number



Outgoing Stock

Collect machine stock information from field

staff

Arrange crates according to crates types

Crates types: 1 Haldiram 2 Biscuits 3 Juice

Crates out by field staff

Entire in In/Out control sheet



Return Stock

Date Checking

Keep the return stock at a certain

place

Entire in return stock form

Re-use the return stock

Verify the return stock form by

admin and operations team.

Verification by CEO Analyze return

stock data

Check the expire date of stock in the machine and stock room, once

in a month.

Sort out all the expired stock and old stock

Sending the old stock to Infosys.

Log expired stock into register.

(Log by machine id and Quantity as needed)



Refunds

Give refund forms to supplying teams

for keeping in machines

Fill the forms by customers

Collect the forms from machines by

Field staff

Handover all forms to admin

department

Entry all the details in refund register

and recheck

Report to CEOO and collect the cash

Make envelops with details of all

the customers

Make two copy of refund forms recheck again

Send the envelops to company with

field staff

Distribute envelops to companies

reception or admin

Contact to customers and

return cash

Take back envelops which

are not returned



Cash Process

Ready with cash bags and stats

forms

Give all cash bags and keys to

supplying team

Collect cash from machine and keep all the cash in bags

Fill stats forms with all details

Handover all cash with detail to office admin

Cash Sorting, Counting, packing done Chitra mam

Again verification and counting by

Sandeep sir

Make bundle of cash

Deposit in bank



Market

Vending machine market in India is still at a nascent stage and is expected to

witness dynamic growth in the near future. The market will be boosted by the

increasing consumerism coupled with changing lifestyle, resulting in increased

demand for vending machines.

Factors driving the growth of vending machine market in India are also

explained in detail. Increasing consumerism coupled with growing organized retail

stimulates the demand for more vending machines across the country. India is one of

the most lucrative consumer markets in the world with about one sixth of the global

population. FMCG sector is one the major factors influencing the growth of the

vending machine market. Growing urbanization and corporate culture provides

opportunity for vending machine installations. Improved technology and new

applications has facilitated the market to grow further. Changing needs and

preferences arising from a modified lifestyle enables the players to increase their

domestic customer base.

The players operating in the market also face challenges which are hampering their

development and growth. Availability of cheap labour coupled with poor payment

mechanisms act as major impediments for this market. Consumer perception

towards using vending machines poses a hindrance for the market. General

perception of consumers of buying goods directly from shops discourage them from

using vending machines as they are not sure of the quality of the products.



Organization structure

Director

Supervisor

Supervisor

Operations team

Operations team

Supervisor

Operations team

Admin Manager



Roles and Responsibilities

In the first phase of my 3months project I developed questionnaire.

https://www.surveymonkey.com/s/Z66M39G

Use of Machine

1. How often you use vending machine?

o Daily(frequently)

o Weekly

o Not at all

Options Frequency Percentage

Daily 72 60

Weekly 48 40

Not at all 0 0

Total 120 100

Fig-1 – Frequency of use of machine Mostly consumers use the machine

regularly.

72

48

0 0

10

20

30

40

50

60

70

80

Regular Non Regular Never Use Machine

Fre

qu

en

cy



2. When do you normally use it for regular users?

o Morning

o Afternoon

o Evening

o Late Night


Morning 27 22.5

Afternoon 41 34.17

Evening 30 25

Late Night 22 18.33

Total 120 100

Fig-2 – Time of use of machine

The consumers prefer to buy in the afternoon.

27

41

30

22

0

5

10

15

20

25

30

35

40

45

Morning Afternoon Evening Late Night

Fre

qu

en

cy



3. How often do you use it per week?

o Once

o Less than 5 times

o More than 5 times

o Rarely


Once 21 17.5

Less than 5 times 41 34.17

More than 5 times 45 37.5

Rarely 13 10.83

Total 120 100

Fig-3 – Use of machine per week

The highest frequency to use the machine is more than 5 times per week.

0

5

10

15

20

25

30

35

40

45

OnceLess than 5

times More than 5times Rarely

21

41 45

13

Fre

qu

en

cy



4. What do you normally buy? (Tick more than one)

□ Namkeens

□ Noodles

□ Cakes

□ Chocolates

□ Biscuits

□ Drinks


Namkeens 52 11.28

Noodles 89 19.31

Cakes 76 16.49

Chocolates 43 9.33

Biscuits 97 21.04

Drinks 104 22.55

Total 461 100

Fig-4 – Food items bought

The most bought item is drinks followed by biscuits and noodles.

0%10%20%30%40%50%60%70%80%90%

100%

52 89 76 43 97 104 Fre

qu

en

cy



5. What other items would you like in the machines? (Tick more than one)

□ Sandwiches

□ Burgers

□ Baked Items

□ Veg Puff

□ Fruits

□ Low Sugar Items

□ Dry Fruits


Sandwiches 56 13.43

Burgers 23 5.52

Baked Items 51 12.23

Veg Puff 36 8.63

Fruits 96 23.02

Low Sugar Items 67 16.07

Dry Fruits 88 21.1

Total 417 100

Fig-5 – Other items in the machines

The consumers would most likely to have fruits and dry fruits added to the machine.

56

23

51

36

96

67

88

0

20

40

60

80

100

120

Sandwiches Burgers Baked Items Veg Puff Fruits Low SugarItems

Dry Friuts

Fre

qu

en

cy



Ratings

6. Rate the machine on below basis?

□ Excellent

□ Good

□ Average

□ Poor

□ Worst


Excellent 32 26.67

Good 54 45

Average 27 22.5

Poor 7 5.83

Worst 0 0

Total 120 100

Fig-6 – Rating of machine on the ease of use

Consumers find it easy to use the machine.

32

54

27

7

0 0

10

20

30

40

50

60

Excellent Good Average Poor Worst

Fre

qu

en

cy



7. Rate the variety of food items.

□ Excellent

□ Good

□ Average

□ Poor

□ Worst


Excellent 29 24.17

Good 48 40

Average 31 25.83

Poor 8 6.67

Worst 4 3.33

Total 120 100

Fig-7 – Rating of variety of food items

The variety of food items according to the consumers is average while few find it

worst.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ExcellentGood

AveragePoor

Worst

29 48 31 8

4 Fre

qu

en

cy



8. How satisfied are you with the quality and freshness of the food items?

□ Highly Satisfied

□ Satisfied

□ Neutral

□ Dissatisfied

□ Highly Dissatisfied


Highly Satisfied 37 30.83

Satisfied 64 53.34

Neutral 19 15.83

Dissatisfied 0 0

Highly Dissatisfied 0 0

Total 120 100

Fig-8 – Rating of quality and freshness of food items

Consumers are satisfied with the quality and freshness of food items.

37

64

19

0 0 0

10

20

30

40

50

60

70

Highly Satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

Fre

qu

en

cy



9. How do you find the pricing of the food items?

□ Very Good

□ Reasonable

□ Costly


Very Good 95 79.17

Reasonable 25 20.83

Costly 0 0

Total 120 100

Fig-9 – Pricing of the food items

The pricing of the food items is found reasonable by the consumers.

95

25

0 0

10

20

30

40

50

60

70

80

90

100

Very Good Reasonable Costly

Fre

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en

cy



Any Problems or Complaints

10. Have you ever faced any problem with the machine?

□ Yes

□ No


Yes 44 36.67

No 76 63.33

Total 120 100

Fig-10 – Problems faced with the machine

Some consumers have faced problems with the machines.

44

76

0

10

20

30

40

50

60

70

80

Yes No

Fre

qu

en

cy



11. If yes, then what kind of problem have you faced?


Product Got Stuck 32 40

Did Not Get Change 29 36.25

No Chilling in the

Machine

19 23.75

Total 80 100

Fig-11 – Kind of problem faced

Mostly the problem faced by the consumers is that their product gets stuck in the

machine.

32

29

19

0

5

10

15

20

25

30

35

Product Got Stuck Did Not Get Change No Chilling in the Machine

Fre

qu

en

cy



12. If you have lost money while using it, how would you rate the refund process?

□ Excellent

□ Good

□ Average

□ Poor

□ Worst


Excellent 36 30

Good 47 39.17

Average 29 24.17

Poor 8 6.66

Worst 0 0

Total 120 100

Fig-12 – Rating of refund process

However the refund process according to the consumers is good.

36

47

29

8

0 0

5

10

15

20

25

30

35

40

45

50


Fre

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en

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Other Options

13. If a smart card was introduced for the machine, how useful would this be for you?

□ Very Useful

□ Useful

□ Would Make No Difference


Very Useful 22 18.33

Useful 36 30

Would Make No

Difference

62 51.67

Total 120 100

Fig-13 – Usefulness of smart card

Maximum number of consumers doesn’t want the smart cards.

22

36

62

0

10

20

30

40

50

60

70

Very Useful Useful Would Make No Difference

Fre

qu

en

cy



14. Do you use a prepaid mobile number?

□ Yes

□ No


Yes 47 39.17

No 73 60.83

Total 120 100

Fig-14 – Use of prepaid mobile number

Majority of consumers don’t use a prepaid mobile number.

47

73

0

10

20

30

40

50

60

70

80

Yes No

Fre

qu

en

cy



15. Would you be ok in receiving your refunds through a mobile recharge?

□ Yes

□ No


Yes 33 27.5

No 87 72.5

Total 120 100

Fig-15 – Refunds through mobile recharge

Consumers don’t want their refunds through mobile recharge.

33

87

0

10

20

30

40

50

60

70

80

90

100

Yes No

Fre

qu

en

cy



16. Would you like to see non-food items in the machine?

□ Yes

□ No


Yes 98 81.67

No 22 18.33

Total 120 100

Fig-16 – Non-food Items in the machines

Mostly consumers want non-food items in the machines.

98

22

0

20

40

60

80

100

120

Yes No

Fre

qu

en

cy



17. What would you like to have in the non-food section?

(e.g. Stationery, Mobile Recharge Coupons, Batteries, etc.)


Stationery 74 41.11

Mobile Recharge

Coupons

21 11.67

Batteries 36 20

Tissues 49 27.22

Total 180 100

Fig-17 – Non-Food items in the machines

The product most wanted in the non-food section is stationery.

74

21

36

49

0

10

20

30

40

50

60

70

80

Stationery Mabile RechargeCoupons

Batteries Tissues

Fre

qu

en

cy



Overall Rating & Comments

17. Overall please rate our services.

□ Excellent

□ Good

□ Average

□ Poor

□ Worst


Excellent 48 40

Good 57 47.5

Average 9 7.5

Poor 6 5

Worst 0 0

Total 120 100

Fig-18 – Overall rating of services

The consumers are quite happy with the services provided by the company.

48

57

9 6

0 0

10

20

30

40

50

60


Fre

qu

en

cy



2. In the 2nd

phase of my SIP, I actively participated with my admin manager for

generating the leads

Marketing

Some of the companies we were able to generate leads were

1. Hilton

2. Harmon

3. Infosys

4. GS (Goldman sachs)

Creating leads

Meeting with customers

Presentation Contract process



MIS Process

This is the third phase in my project

1. Proposal Changes

The next thing I was asked to do was to make the necessary changes in the business

proposal that the company provides to the consumers who would like to avail the

services provided by the company. This proposal included:-

a. The different types of plans that company provided.

b. Machine specifications.

c. Transportation and installation charges.

d. Conditions.

e. Contract break conditions.

f. Client responsibilities.

g. Agreement stating which plan the consumer wants.

2. MIS for trend analysis

The company did not have a proper database of all the activities that were performed

by the company. The task of creating all the databases was assigned to me and two

other interns. All the databases were on the quarterly basis i.e. from January 2013 to

March 2013. The main purpose of doing this work was to make it easier for any

existing or new employees to understand the functioning of the company and to know

all the consumers that the company provided its services. Therefore, with the help of

all the paperwork, we made the following databases in the form of excel sheets:-

a. Which product is most popular overall?

The first database that we created was regarding the food products that

company provided to all the consumers. This database was created with the

help of all the invoices that the company had from different retailers that they

did business with. The excel sheet was made month wise, i.e. how much

quantity was bought in the respective month. After that a consolidated sheet

was made for all the three months and the products were sorted according to

the maximum purchase to the minimum purchase. This gave the idea about



which particular product was most popular among end users. The result would

be used to check which product to be continued and which not or which

products to focus on.

b. Which product in a specific category is most popular?

This database was the extension of the earlier database. In this database, we

had to calculate which product in a specific category was most popular among

the end users. The result would be used to see which product in a category is

not to be continued and which ones are to be bought more. The different

categories were:-

I. Wafers

II. Biscuits

III. Cakes

IV. Namkeens

V. Chocolates

VI. Carbonated Drinks

VII. Non-Carbonated Drinks

VIII. Hot Drinks

IX. Noodles

X. Breakfast

XI. Chewing Gums

c. Which machine has most sales?

The company in total has 76 machines across 21 companies and 1 college

hostel. In order to find out which machines have the maximum sales, this

database was created. The money was collected on a weekly basis or

sometimes twice in a week from the respective machines and the amount was

recorded in a form machine wise. These forms were used to make this

database. Firstly the data was recorded month wise, i.e. Jan 2013 to Mar 2013

and then the final result was given by adding the sales of all the three months

for each respective machine. This gave the result as to which particular

machine had the maximum sales in that quarter. The result would be used to



check which company to focus more to try to increase its sales and how to

continue maintaining consumers in the highest earning machines.

d. Which company has most sales?

The above database was done for each single machine, whereas this database

was created for all the 21 companies and 1 college hostel combining all the

machines of respective companies. In order to find out which particular

company has the maximum sales, the amount of all the machines of respective

company was added together. Then the total of all the three months was

calculated to find out the desired result. This result would also be used to keep

the sales in highest earning companies and what should be done to increase the

sales in lower earning companies.

e. Which company has most refunds?

The vending machines function properly but sometimes there is a technical

problem with the machines. There have been some occasions when the end

users have faced a problem with the machines. There were basically two

problems that the consumers faced:-

i. The first issue was that when the consumer makes any transaction, the

food item gets stuck in the machine and the consumer neither gets the

item nor his money back.

ii. The second issue was that the consumer did not get his change amount.

In both the above cases, the company has to make a refund to the particular

consumer. The company has put a feedback form at the side of all the

machines and the consumers can write their feedbacks or any complaints. The

form is collected when it if filled completely and is replaced by a new form.

After that all the refunds complaints are recorded in a register. So with the

help of all the forms and the entries in the registers, we made this database to

find out which particular company has the maximum refunds. This result

would be used to make necessary changes so that the consumers do not face



any such problems in the future. The result will be used to check what should

be done to avoid such situations in any company having refunds.

3. Designed the survey poster

The next work assigned to me was to conduct a consumer survey. This was the first

survey to be done in the company. The survey was done to get the feedback about the

company and the services it provided. The survey was done online through the

website of Survey Monkey. A questionnaire was designed and the web link for the

same was shared with the consumers to get their responses. The responses were only

collected through online mode.

In order to conduct the survey a poster was designed. The company decided to give

away a prize to one of the consumers out of who filled the survey. This was done to

get more and more responses. The poster was pasted on all the machines and the soft

copy was also shared with the consumers with the questionnaire.

4. Conducted consumer survey

Finally after all the required work was finished, the survey was started. In a period of

one month, 120 responses were received. The company decided to continue the

survey for another month to get more responses. The analysis and result is done for

only 120 responses that were collected during my internship.

Role

So after showing the results through MIS I came to know which machine was

performing well and which was not performing well so I used to go and try to find out

what was the problem. And also which machine is getting more refunds we used to

sought the technical problem



Findings

The Company is having very good business model of giving services in food and

beverages industry with Vending machines. This is because there are no

competitors in the market.

The Company is catering to the lifestyle needs of people.

Convincing the customers is very important to install vending machines in their

premises.

Customer satisfaction is very important for this business. The Company is providing

products in discounted price which helps to get more sales.

Purchasing any product in large quantity is helpful in getting more benefits.



Recommendations

Location of the machine

Proper guidance for the employees of refilling the machine

Proper way for advertising the vending machine

Its better if refilling would be enhanced during nights as traffic will be low



Bibiliography

http://www.freshvending.com/

http://www.chantillygroup.co.in/

http://www.entrepreneur.com/marketing/marketresearch/

http://www.glovia.nl/files/44/GloviaBusinessOptimizationAnalysisBooklet.pdf

http://www.freshvending.com/

http://www.chantillygroup.co.in/

http://www.entrepreneur.com/marketing/marketresearch/

http://www.glovia.nl/files/44/GloviaBusinessOptimizationAnalysisBooklet.pdf

Documents

Pavan Sip Phase 2Business Optimization in Small Medium Enterprise