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Report on Summer Training[Title]

Measurement of Brand awareness and Brand Perception customer loyalty study.

OF

Mrs. Bector’s Food Specialties Ltd.

Phillaur

Submitted to: LOVELY PROFESSIONAL UNIVERSITY

In partial fulfillment of theRequirements for the award of Degree of

Master of Business Administration

Submitted by:Vipalav mandal

Registration no. 10804720

DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY

PHAGWARA Session(2008-2010)

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ACKNOWLEDGEMENT:-

The present work is an effort to throw some light on Market study of Cremica Biscuit at “Mr.Bector Food Specializes Limited”. The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number people.

With deep sense of gratitude I acknowledge the encouragement and guidance received by my organizational guide Mr. Shaliash Kumar and other staff members.

I would like to thanks Miss. Shweta Walya who helped to prepare this project.

I convey my heartful affection to all those people who helped and supported me during the course, for completion of my Project Report.

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PREFACE :-

This project is the result of six weeks training at “Mrs. Bector’s food Specialities limited” Phillaur. Summer training is an integral part of “Master of Business Administration” course and it aims at providing a first hand experience of industry to students. This practical experience helps the students to view the real Business World closely.

I was really fortunate of getting an opportunity to pursue my Summer Training in reputed, well established, fast growing and professionally managed organization like ‘Cremica’.

Project assigned “measurement of Brand awareness and Brand Perception customer loyalty study of “Cremica Biscuit” in Punjab”.

Required a lot of extensive study as I had to personally visit the respondents for getting the required information. It gave me a great deal of exposure and I found practical work totally different from theoretical one...”In the end I would like to express our deepest gratitude to entire faculty members who have been guiding force behind this project and encouraged me for successful completion of my summer training.

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TABLE OF CONTENTS

TITLE PAGE

CERTIFICATE

ACKNOWLEDGEMENT

PREFACE

EXECUTIVE SUMMARY

CHAPTER 1

INTRODUCTION TO THE SUBJECT

INTRODUCTION OF FMCG SECTOR

BISCUIT SECTOR IN INDIA

CHAPTER 2

OVERVIEW OF THE INDUSTRY

History of industry Growth Major players Market share

PROFILE OF THE ORGANIZATIONINTRODUCTION OF COMPANY

History of the company Customer of Cremica’s food ltd

DIRECTOR & SHAREHOLDERSRECENT ACHIEVEMENTS AND MILESTONESPRODUCT RANGE OF THE COMPANYPERFORMANCE OF THE COMPANY OVER THE LAST FEW YEARSFINANCIAL STATUS OF THE ORGANIZATIONFUTURE PROSPECTS/ PLANSWOT ANALYSIS

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CHAPTER 3

OBJECTIVE OF THE STUDY

RESEARCH METHODOLOGY

Scope of the Study

Sample size

Sampling techniques

Research Instruments

Source of data

Data Usage

LIMITATION

CHAPTER 4

ANALYSIS & FINDINGS

CHAPTER 5

Recommendations/Suggestions

Policy Implications

Conclusion

Questionnaire

Bibliography

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Executive summery:-

The summer training in an organization is an integrated part of MBA program. It exposes students to the problem areas and provides knowledge as how to face these problems areas and provide confidence as how to solve this problem. There is a gap between theory and practice and the training is aimed at removing this gap and to increase the process of communication between future manager and industrial sector.This market study plan has been written keeping in mind the Punjab operations of Cremica Biscuit. It aims first, at analyzing the biscuit industry India and finding a place in it for Cremica. It then sets out to describe the target audience for the product range and finally suggests a host of market and activities that will help Cremica to achieve its target of becoming the #1Cremica Biscuit in India.

The plan begins with a brief overview of the product category being dealt with, namely premium quality Cremica Biscuit. It also dwells briefly on the history of the company and its current position and activities.

The project moves on to the crux of the matter – the market study plan to be followed by Cremica Biscuit in Punjab. Firstly, the objectives behind this plan and the core strategy are stated. Customers to be eventually targeted are described and compared with competitors’ customer targets. After starting the objectives and reasoning behind them, the actual marketing programs are described in detail.

The plan then goes on to the customer analysis section. The customer base is identified and various segments are pointed out. Various criteria and factors have been taken into consideration while segmenting the market. We have also tried to ascertain why customers buy these products, how they choose, and what factors matter most when making their decisions. In my project I study about the cremica biscuit. in which I analyze full market survey on Cremica biscuit its current demand & future potential and also financial ,SWOT analysis of Mr.Bector food speciailites food ltd. The last few pages of this market study deal with the various ways in which the plan, once implemented, can be monitored and controlled .

Objective of the study:-

The main objective of the study is to find out satisfaction level of the consumer towards Cremica Biscuits in every aspect.The second objective of the study is to compare Cremica and other brands in term of satisfaction level.The third objective of the study is to find out non user of the Cremica Biscuits.The last objective is to find out the areas where Cremica is lagging behind & needs improvement.

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Finding of the study:-

Most no. people says that availability is not very good of the companyBut quality is very good of the company.The demand of Cremica biscuit has been increases in recent years.Mrs.Bector only target large scale producers.Mrs Bector has a professional set up and rarely supply material to manufactures directly.Compare to the Britaina advertisement so less of the company.

SUGGESTIONS AND RECCOMANDATIONS:-

The following suggestions and recommendations can be derived on the basis of the survey and the analysis being done of questionnaires filled during the survey. These suggestions are just suggestive and conclusive and may vary from individual’s survey.Advertisement and availability should be increased of the product.

Company should increase its credit period in order to attract more dealers and customers.

Demand pattern should be observed properly and production should be in harmony with the same.

Availability should be good.

POLICY IMPLICATIONS:-

By implementing the above mentioned suggestions the company will able to perform better in the market by making their good recognition among customers. The effect of policy implication would be

Appoint competitive staff Provide fast services to the customers. Increase in no. of customers. Variety of options for customers. More trust among customers regarding Mrs.Bector food ltd. Helpful in long run to build goodwill. Helpful in making effective marketing strategy. Company can get benefit through share market

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INTRODUCTION TO THE SUBJECT :-

MESUREMEN T OF BRAND AWARENESS AND BRAND PERCEPTION CUSTOMER LOYALTY STUDY:-

 Brands are important in the consumer market. They are the interface between consumers and the company, and consumers may develop loyalty to brands. This study proposes that trust in a brand is important and is a key factor in the development of brand loyalty. Factors hypothesized to influence trust in a brand include a number of brand characteristics, company characteristics and consumer-brand characteristics. Respondents representing a broad spectrum of Singapore consumers were surveyed. The findings reveal that brand characteristics are relatively more important in their effects on a consumer's trust in a brand. The results also show that trust in a brand is positively related to brand loyalty. Marketers should, therefore, take careful consideration of brand factors in the development of trust in a brand.

Theoretical of Branding:-

Brand is the image that consumers have in mind (Aaker ,1991). It is also the unique characteristic that have been developed all the time in order to differentiate actual products from the competitors (Murphy, 1990). In addition , The American association defines a brand as “a name , term, sign, symbol or design, or a combination of them intended to identify the goods or service of seller or group of seller and to differentiate them from those of competitors . “A brand is thus a product or service that adds dimensions to satisfy the same needs. these differences may be functional, rational, or emotional or intangible related to what the brand represents. Brand concepts must address customer interest and lifestyle. Factors that affect its brand image brand perception among marketing communication program that implementation to the public to create brand perception , brand characteristic brand image and brand equity.

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Brand awareness .:-

Sample responded to four items designed to assess their ability to recognize and recall the brand as a member of a certain project category. The items from Atilgan’s questionnaires ( Atilgan et al, 2005) which including “I am aware of this restaurant” (BAW1), “ I can recognize this restaurant among other restaurants”(BAW2), “I know what this restaurant looks like”( BAW3), “Some characteristic of Mc Donald come to my mind quickly”(BAW4).

Brand perception:-

Brand perception is consumer’s ability to identify the brand under different condition , as reflected by their brand recognition or recall performance (Kotler &Lane, 2006). Brand recall refers to consumer’s ability to retrieve the brand form the memory (Keller’1993).According to the improvement of measurement for brand equity ,consumer based brand equity was described for four dimension; brand awareness, brand association , perceived quality and brand loyalty (pappu,et al,2005).Brand awareness was defined as the consumer’s ability to identify or recognize the brand .It refers to the strength of a brand presence in consumer’s minds.Brand awareness has several starting from the less recognition of the brand to domance (Aaker, 1991). Perceived quality is another valuation of brand to push the customer to buy products.

Brand Loyalty:-

Five items by Kim and Kim (2005) were adopted to measure the attachment that customer has to a brand including :“ I regularly visit this restaurant”( BL1), “I intend to visit this restaurant again”( BL2), “I usually use this restaurant as my first choice compared to other restaurants”(BL3), “I am satisfied with the visit to this restaurant”(BL4), “I would recommend this restaurant to others” (BL5), and “I would not switch to another restaurant for the next time”( BL6).Brand loyalty define the what about thinking of the product .

INTRODUCTION OF FMCG SECTOR:-

Fast Moving Consumer Goods (FMCG) also known as Consumer Packaged Goods, are products that have high turnover , and relatively low cost .Consumer generally put less thought in to the purchase of FMCG than they do for other products. Though the absolute Profit made on FMCG products is relatively small, they

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generally sell in large numbers & so the cumulative profit on such Products can be large. FMCG industry is innovative, full of rich experience, reaches world wide, people working with FMCG may get frequent opportunity to travel meet new culture, gets experience very quickly and chances to rise in status is much easier. Unlike other sectors FMCG shares float in a steady manner irrespective of market dip world wide. So basically, fast moving consumer goods are pretty awesome. The sector consists of consumer non-durable products which broadly consists, personal care, household care and food & beverages. The Indian FMCG industry is largely classified as organized and unorganized. This sector is also buoyed by intense competition. Besides competition, this industry is also marked by a robust distribution network coupled with increasing influx of MNCs across the entire value chain. This sector continues to remain highly fragmented. The FMCG industry is volume driven and is characterized by low margins. The products are branded and backed by marketing, heavy advertising, slick packaging and strong distribution networks. The FMCG segment can be classified under the premium segment and popular segment. The premium segment caters mostly to the higher/upper middle class which is not as price sensitive apart from being brand conscious. The price sensitive popular or mass segment consists of consumers belonging mainly to the semi-urban or rural areas who are not particularly brand conscious. Products sold in the popular segment have considerably lower prices than their premium counterparts.

Product Characteristics:-

Products belonging to the FMCG segment generally have the following

characteristics:

· They are used at least once a month· They are used directly by the end-consumer· They are non-durable· They are sold in packaged form· They are branded

Industry Segments:_-

The main segments of the FMCG sector are:

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Personal Care: Oral care, hair care, skin care, personal wash (soaps), cosmetics and

toiletries, deodorants, perfumes, paper products (tissues, diapers, sanitary), shoe

care

Household Care: Fabric wash (laundry soaps and synthetic detergents), household

cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners,

insecticides and mosquito repellants, metal polish and furniture polish). Major

companies active in this segment.

Branded and Packaged Food and Beverages: Health beverages; soft drinks;

staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice

cream; tea; coffee; processed fruits, vegetables and meat; dairy products; bottled

water; branded flour; branded rice; branded sugar; juices etc

FMCG IN INDIA:-

The FMCG sector in India is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. The volume of money circulated in the economy against FMCG products is very high, as the number of products the consumer use is very high. The fourth largest sector in the Indian economy is all set for 16% growth during 2008-09, from a base of Rs. 85470 crores, as predicted by FICCI. Going forward, as anticipated by CRISIL, FMCG sector will touch around Rs. 140000 crores by 2015 (33.4B$).

Recent Developments in Fast Moving Consumer Goods

(FMCG) Sector:-

FMCG sector is no doubt registering an up trend in growth. According to CNBC, FMCG sector growth story will continue because of the positive budget. Nevertheless, there are some barriers to the growth of the sector. Indirect taxes constitute no less than 35% of the total cost of consumer products - the highest in Asia. Last year, Finance Minister proposed to introduce an integrated Goods and Service Tax by April 2010.This is an exceptionally good move because the growth of consumption, production, and employment is directly proportionate to reduction in indirect taxes.Reduction of duty on edible oil will have a positive impact on MaricoFull exemption of excise duty on biscuits priced at 50 rupees.

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Reduction of custom duty on food processing machinery and their parts from 7.5% to 5%. Reduction of excise duty on food mixes from 16% or 8% to nil. Development of rural infrastructure is in focus, which is beneficial for FMCG companies because it is a big market for FMCGs. Better infrastructure will improve the supply chain.Exemption of free samples and displays from the purview of FBT will be beneficial for FMCG companies because they spend huge amount of money on advertising and brand building. HLL, Dabur, ITC, and Marico will be amongst the most benefited companies.

Corporate Social Responsibility:-

FMCG companies have now started taking Corporate Social Responsibility seriously. For instance, to encounter domestic violence, Ponds has tied up with the United Nations Development Fund(UNDF) for Women. Surf Excel is funding the education of children. Most brands link themselves with the social causes, thereby linking consumers with the brands and gaining goodwill in the market.

INTRODUCTION ABOUT BISCUITS SECTOR IN INDIA:-

India Biscuits Industry is the largest among all the food industries and has a turn over of around Rs.3000 crores. India is known to be the second largest manufacturer of biscuits, the first being USA. It is classified under two sectors: organized and unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80 percent of the total bakery products in India. Biscuits stands at a higher value and production level than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production.

India Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for ready made food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food product for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits. Even, the rural sector consumes around 55 percent of the biscuits in the bakery products.

Biscuits contributes to over 33 percent of the total production of bakery and above 79 percent of the biscuits are manufactured by the small scale sector of bakery industry comprising both factory and non-factory units.

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The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully

1.Annual Growth Rate of Biscuits Sector in India:-

The biscuit industry in India witnessed annual growth as below2003-04 - 15%2004-05 - 14%2005-06 - 14%2006-07 - 13%2007-08 - 15%2008-09 - 17%(April – June)-While the growth rate has been stagnating during last 4 years, it has picked up momentum during the 2007-08 and the first quarter of 2008-09 mainly on account of exemption from Central Excise Duty on biscuits with MRP up to Rs.100/per kg, as per Union Budget for 2007-08.

Indian Biscuit Manufacturers’ Association (IBMA), instrumental in obtaining the

excise duty exemption, estimates annual growth of around 20% in the year 2008-09.

Growth in biscuit marketing has been achieved also due to improvement in rural

market penetration.

2. Annual Production of Biscuits Sector in India:-

The organized biscuit manufacturing industry‘s annual production figures are given below:(In Lakh Metric Tonnes) 2003-04 - 11.00 2004-05 - 12.54 2005-06 - 14.29 2006-07 - 16.14 2007-08 - 17.14

Segments: The organized and unorganized sectors of the biscuit industry is in the

proportion of 60%:40% ratio

In 2007-08 the export of Biscuits is equal to the 15% of the total Production.

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Pattern of Biscuit Consumption(On Zonal basis) in the country are as below:-

Northern Zone - 25%Western Zone - 23%Southern Zone - 24%East and North

East Zone - 28%(Including N.East)

The per capital consumption as well as pattern of consumption in the four regions, as shown above, will also increase considerably, in case the industry’s plea for reduction in the rate of Value Added Tax (VAT) from 12.5% to 4% is acceded to

Main Categories of Biscuits are broadly as under:Glucose, Marie. Sweet, Cream, & Milk

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Mrs. Rajni Bector

Chair Person

MRS. BECTOR'S FOOD SPECIALITIES LTDLUDHIANA, India

HISTORY OF THE INDUSTRY:-

Mrs. Rajni Bector founder of the MRS. BECTOR’S CREMICA started her new career from a housewife to an entrepreneur in the year 1980 with a meager investment of Rs. 20000/- for the manufacturing of Ice Creams & Bakery items from the backyard of her residence.Mr. Ajay Bector her eldest son joined her in the year 1982 to help her with the increased business volumes. In the year 1986 she started another unit at Ludhiana for the manufacturing of Bread and bakery biscuits with an investment of Rs. 1.00 Lac. Mrs. Bector’s younger sons Akshay Bector & Anoop Bector after completing their education joined the business in 1989 and a unit for manufacture of bread was established at Phillaur near Ludhiana in the year 1989 for the manufacture of 50000 loaves of bread per day. In the year 1991 Mrs. Bector started another fully automated unit for the manufacture of Biscuits at Phillaur with a capacity of 7200 M.T. of Biscuits per annum with an investment of Rs.75.00 Lacs. In the year 1992 Mrs. Bector’s Cremica established a manufacturing facility for confectionery items followed by a unit for the manufacture of Namkeens. In the year 1997 seeing the quality of the products being manufactured McDonalds approached Mrs. Bector for supplies of various products i.e. buns, liquid products and batters & breading. This was a golden opportunity for the Bector Family and the family entered into various Joint ventures so that international expertise could help them produce international level products compared to the best in the world.

In the year 2002 a modern Bun Manufacturing facility manufacturing over 150000 Buns per shift was established at greater Noida for supplies to McDonalds. This is one of the most modern units of its type in the country.In 2003 a foray was made into Fresh Vegetable Processing and a modern facility for processing of fresh vegetables like lettuce, cut vegetables etc for supplies to McDonalds was made at an investment of Rs. 15.00 Million. In the year 2004 Mrs. Bector’s Cremica entering into an Agreement with ITC Ltd. for the manufacture of Biscuits on contract manufacturing basis at Tahliwal, Distt Una (H.P.). A state of the art facility was established for the manufacture of 60000 M.T. of biscuits at a cost of over Rs. 25.00 Crores producing biscuits valued at over Rs. 200 Crores P.A. This unit produces 30000 M.T. of biscuits for ITC under the SUNFEAST BRAND and 30000 M.T. under the Mrs. Bector’s Cremica label. In the year 2004 the Group also entered in to an agreement with Cadbury India

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Ltd. for supply of Cadbury Bytes with an investment of Rs. 3.00 Crores producing goods valued at Rs. 30.00 Crores annually. In the year 2007 the Group was offered an opportunity for Equity participation by Goldman Sachs. The liquid products & biscuit operations were valued by Goldman Sachs at Rs. 500.00 Crores. The group offered Goldman Sachs 15% equity for Rs. 75.00 Crores to help speed up its expansions with the equity infusion.In 2007 McDonalds offered Mrs. Bector the bun business for West & South India and a new state of the art unit was established at Taloja, Navi Mumbai.In the year 2007 Mrs. Bector acquired a unit at Karnal, Haryana for the manufacture of Indian Namkeens.

The group has in the year 2007 acquired new industrial sites at Ludhiana (Punjab), Kundli (Haryana), Raigad (Maharastra) & Pune in Maharastra for further expansions.Cremica is one of the largest food processing companies of India with an annual growth rate of 50% year on year basis in the last 4 years. The quality, the taste and the penchant for perfection is what has given the required thrust to sales. From a single plant at Phillaur, today Cremica has a number of plants situated at various locations all over India. Cremica’s presence in the market is visible on account of its vast range of products, which include:BiscuitsSauces, Jams and KetchupsIndian SnacksReady to Eat FoodCondimentsFrozen Products, Bakery Products.

Customers of the Industry:-

McDonaldsIndian ArmyIndian AirlinesPizza HutDominos

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Reliance Retail StoresSubhikshaBarista Coffee ShopsCafe Coffee DayJet AirwaysUnited Nations (World Food Programme)Indian RailwaysCanteen Stores Department (Indian Army)Super Bazaar

Bankers :-

State Bank of Patiala

The Mall, Commercial Branch, Miller Ganj, Ludhiana 141 001, Punjab, India

HDFC Bank Limited

HDFC Bank House, Senapati Bapat Marg, Lower Parel (West), Mumbai 400 013, Maharashtra, India

State Bank of India

GROWTH RATE OF THE COMPANY:-

Mrs Bector's Cremica growing at rate of 30percent per annum, it is expecting the turnover to touch 120 million USD by 2010.

MAJOR PLAYERS:-

Cremica Biscuits is Facing Strong Competition from the Various Companies. The Major Players in Biscuits Segments from which Cremica is facing strong Competition are:

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BRITANNIA

PARLE

PRIYAGOLD

SUNFEAST

ANMOL

MARKET SHARE : 45% of the Market Shared by Britannia & Parle, & other 55% is shared by Cremica , priyagold , Sunfeast .

Company profile:-

Products manufacturing and exporting, biscuits, confectioneries, sauces, jams and ketchups, indian snacks, ready to eat food, condiments, frozen products, bakery products, food products, cream delights biscuits, yum creams biscuits, crispy & crumbly biscuits, indian curries, tongue ticklers ...

Business Type Exporter / ManufacturerYear Established 1982No. Of Employees 1200 Company Branches DELHI, MUMBAI, CHENNAI, HYDERABADWebsite http://www.cremicafoods.comBankers SBI, ICICIProducts Manufacturing and Exporting Biscuits, confectioneries, sauces, jams and ketchups, indian snacks, ready to eat food, condiments, frozen products, bakery products, food products, cream delights biscuits, yum creams biscuits, crispy & crumbly biscuits, indian curries, tongue ticklers biscuits, jams, ketchups, assortment packs biscuit.

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INTRODUCTION OF THE COMPANY:-

History of the company:-

Mrs Bector's Cremica, a 90 million dollar company, is one of the largest players in food services business in India. The Cremica Group includes Cremica Frozen Foods, EBI Foods, Mrs Bector's Desserts and Cremica Agro India. It serves as a one-stop solution provider to all leading food service chains, food retail chains, hotel groups and airlines. Cremica's spread of delightful biscuits, breads, sauces, bread spreads, ready-to-eat curries and syrups have something for everyone. Today, its products are exported to 50 countries including Africa, the USA, UK and the Middle East. Since 1996 Cremica has been supplying buns, ketchups and toppings to McDonald's - its key business partner. It has also partnered with Cadbury's ITC and EBI Foods, a UK based firm. It has customers like Cafi Coffee Day, Taj Group of Hotels, Spencer and Barista as well. Cremica's liquid condiments and biscuits are very popular. Earlier, it was producing liquid condiments like sauces, Mayonnaise, Toppings and Syrups with its partner company, the erstwhile Quaker Oats Inc of the United States. In 1999, Quaker Oats withdrew from the joint venture. Cremica's automated biscuit plant has a monthly capacity of producing 10,000 tonnes of biscuits. Its dominant role in the biscuits segment arises from its excellent quality, widespread distribution and extended range. They are amongst the top five players in the biscuit industry in India and amongst the top three in the tomato Ketchup industry and the liquid condiments business. To maintain the highest standards in food safety the group has adopted the Hazard Analysis and Critical Control Points (HACCP) Standards, which is certified by the NSF International of USA. Currently the company is planning to enter into a venture of ready-to-eat ethnic dishes.

CREMICA’s Key Innovations in the Food Services Business:-

Developing Vegetarian Burgers and Vegetarian Mayonnaise for McDonalds.Creating Imli and Mint Chutneys for McDonalds.Creating the Makhni Gravy for Pizza Hut Developing Curry Bread for McDonalds.Developing types of Choco SaucesIngredient substitution for Syrups at BARISTA Evolving solutions for the Soft Serve industry Development of a variety of retail and institutional packaging options

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Key Customer of Cremica foods Limited:-

McDonaldsBaristaCafé Coffee DayDomino’s PizzaJet AirwaysBig BazaarSpencerAir IndiaTaj Sadex Ho Pizza Corner Pizza Hut ITC Welcome Group

10% of the Cremica Revenue is coming from the McDonalds.

introduction of Cremica biscuits:-

This product line has enabled CREMICA to emerge as a major biscuit manufacturer in North India, producing a large and varied range across four segments: Crackers, Cream Biscuits, Cookies and Glucose Biscuits. CREMICA’S dominating role in the biscuits segment arises from its excellent quality, widespread distribution and extended range. Another key strength lies in its ability to customize products and packaging for specific requirements. The biscuit sachet developed specially for hotels and airlines is a good example such customization. A new plant with a capacity of 5000 tonnes per month is being installed in Himachal Pradesh. This plant shall be 100 per cent automated and would be among the best facilities in food processing across the country. In a survey carried out by Insight, the well known consumer magazine, in accordance with BIS-specified parameters, CREMICA’S Glucose Biscuits were Ranked No. 1 in the sweet biscuits category. It is a matter of pride that CREMICA is a part of the programme initiated by the Government of India to manufacture fortified biscuits on an ongoing basis for Afghanistan under the aegis of the World Food Organisation. The organisation is also exporting biscuits to Iraq for the World Food Programme.

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Capacity & Location of the Plant:-

Location           Capacity PHILLAUR        19200 p. a. UNA                 60000 p. a.

DIRECTORS:-

Name : Mr. Anoop BectorDesignation : Joint Managing DirectorAddress : C-13, Sarabha Nagar, Ludhiana 141001, Punjab, IndiaDate of Birth/Age : 1962/10/05Date of Appointment : 2000/04/18

Name : Mr. Ajay BectorDesignation : Whole Time DirectorAddress : C-13, Sarabha Nagar, Ludhiana 141001, Punjab, IndiaDate of Birth/Age : 1958/12/17Date of Appointment : 1995/09/19

Name : Mr. Akshay BectorDesignation : Managing DirectorAddress : C-13, Sarabha Nagar, Ludhiana 141001, Punjab, IndiaDate of Birth/Age : 1961/03/29Date of Appointment : 2000/04/18

Name : Mr. Dharam Vir BectorDesignation : Whole Time DirectorAddress : C-13, Sarabha Nagar, Ludhiana 141001, Punjab, IndiaDate of Birth/Age : 1932/04/01Date of Appointment : 2006/09/30

Name : Ms. Rajni BectorDesignation : Whole Time DirectorAddress : C-13, Sarabha Nagar, Ludhiana 141001, Punjab, IndiaDate of Birth/Age : 1940/06/02

Qualification :2006/09/30

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN (As on

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29.09.2007)

Names of Equity Shareholders No. of SharesDharam Vir Bector 2520Ajay Bector 2500Akshay Bector 2500Anoop Bector 2500Cremica Foods Limited 195000Bector Foods Private Limited 149000Cremica Industries Limited 350000Cremica Agro Foods Limited 66805Total 770825Names of Preference Shareholders No. of SharesJade Dragon (Mauritius Limited) 100000Jade Dragon (Mauritius Limited) 260000Total 360000

Equity share breakup (percentage of total equity) (As on 30.09.2007)

Category PercentageBodies corporate 98.70Directors or relatives of directors 1.30Total 100.00

Recent Achievements and milestones:-

Today, its products are exported to 50 countries including Africa, the USA, UK and the Middle East. Cremica's automated biscuit plant has a monthly capacity of producing 10,000 tonnes of biscuits. Its dominant role in the biscuits segment arises from its excellent quality, widespread distribution and extended range. They are amongst the top five players in the biscuit industry in India and amongst the top three in the tomato Ketchup industry and the liquid condiments business. To maintain the highest standards in food safety the group has adopted the Hazard Analysis and Critical Control Points (HACCP) Standards, which is certified by the NSF International of USA.

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PRODUCT RANGE:-

Cremica has emerged as India’s largest player in the food services business through

its unparalleled expertise in product development, ingredient substitution and

product customization. With an extensive industry experience spanning three

decades, CREMICA today serves as a one-stop solutions provider to all the leading

food service chains, food retail chains, hotels groups and airlines in the country. The

List of Various Food Services provided by Cremica are:

1. Biscuits & Indian Snack foods

2. Liquid Condiments

3. Indian Gravy Condiments

4. Buns & Ready to Eat Bakery Products

5. Dry Blends, Stabliser Blends

6. Ice Creams

Types of Biscuits Cremica offered to the Customer are:-

Crackers Cream Biscuits Cookies Glucose Biscuits

The Range of Cremica Cracker Biscuits:-

Cremica Salties BiscuitsCremica Tik TokCremica Party Craker

The Range of Cream Biscuits:-

The richness of the cream range of biscuits is unmatched. In a variety of seven flavours, these delightful cream sandwich biscuits can tempt anyone to split and lick off the cream in childlike ecstasy.Banana

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ChocolateVanillaPine apple MilkMixed fruitMango

The Range of Cookies Biscuits:-

Some enriched with cashew nuts and dates, some with butter and some with coconut. Crisp and crumbly, they are the old favorites of children and aged alike. And when it comes to Marie, it’s an all time favorite to go with Tea. and CashewMarieButterMarie DipCoconut

The Range of Glucose Biscuits:-

This range of Glucose Biscuits, enriched with glucose, milk and just the right

amount of extra vitamins, include the Premium and the Milkies variety.

GlucoseMalt & Milk

The plant also produces a variety on Indian snack foods including:-

Aloo BhujiaBikaneri BhujiaMoong DalKhatta MeethaNav RattanNut Cracker

MARKETING STRENGTHS:-

In the biscuits segment, CREMICA enjoys the status of a market leader in the northern and central parts of India — primarily across Punjab, Haryana, Himachal Pradesh, Jammu & Kashmir, Delhi, Uttar Pradesh, Uttranchal, Rajasthan, Maharashtra and Madhya Pradesh.

Marketing Team: 200 Distributors: 500

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Super Stockists: 15 Depots: 15 These significant marketing strengths have enabled CREMICA to maintain a consistent growth of 25 per cent for the past four years.

CUSTOMER SATISFACTION:-

Customer Satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation.It ia seen performance indicator within businee and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business a key element of businee strategy.

Market to Your Own Customers!-

Giving a lot of thought to your marketing programs aimed at current customers is

one aspect of building customer loyalty.

When you buy a new car, many dealers will within minutes try to sell you an

extended warranty, an alarm system, and maybe rust proofing. It's often a very easy

sale and costs the dealer almost nothing to make. Are there additional products or

services you can sell your customers?

Use Complaints To Build Business!-

When customers aren't happy with your business they usually won't complain to you - instead, they'll probably complain to just about everyone else they know - and take their business to your competition next time. That's why an increasing number of businesses are making follow-up calls or mailing satisfaction questionnaires after the sale is made. They find that if they promptly follow up and resolve a customer's complaint, the customer might be even more likely to do business than the average customer who didn't have a complaint. In many business situations, the customer will have many more interactions after the sale with technical, service, or customer support people than they did with the sales people. So if you're serious about retaining customers or getting referrals, these interactions are the ones that are really going to matter. They really should be handled with the same attention and focus that sales calls get because in a way they are sales calls for repeat business.

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Reach Out To Your Customers!-

Contact . . . contact . . . contact with current customers is a good way to build their loyalty. The more the customer sees someone from your firm, the more likely you'll get the next order. Send Christmas cards, see them at trade shows, stop by to make sure everything's okay. Send a simple newsletter to your customers-tell them about the great things that are happening at your firm and include some useful information for them. Send them copies of any media clippings about your firm. Invite them to free seminars. The more they know about you, the more they see you as someone out to help them, the more they know about your accomplishments-the more loyal a customer they will be. Building customer loyalty will be a lot easier if you have a loyal workforce-not at all a given these days. It is especially important for you to retain those employees who interact with customers such as sales people, technical support, and customer-service people. Many companies give a lot of attention to retaining sales people but little to support people. I've been fortunate to have the same great people in customer service for years-and the compliments from customers make it clear that they really appreciate specific people in our service function. The increasing trend today is to send customer-service and technical-support calls into queue for the next available person. This builds no personal loyalty and probably less loyalty for the firm. Before you go this route, be sure this is what your customers prefer. Otherwise I'd assign a specific support person to every significant customer.

 

Performance of the company over the last few years:-

At a time when international food chains—McDonald’s, KFC, and Pizza Hut—are expanding here, the west is waking up to the taste of our own tangy desi curries. And the credit for this goes to Rajni Bector of the Cremica group.  The company is targeting a turnover of Rs 500 crore. Its turnover last year stood at Rs 120 crore. As part of expansion plans, the company is set to invest Rs 30 crore in 2006-07.  Exports generate 15-20 per cent of the revenues. With the launch of this product, exports are expected to rise significantly. Besides, with its other products like biscuits and cakes, the company is focusing on “ready to use products”.  In the biscuit category, the company registered 40 per cent growth in the last financial year.  “Of late, we have been quite successful in our value-addition. Our curries and gravies have added a new dimension to the cuisine in the west,” said Bector.  

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“Indian curries abroad will be as common as tea here. A wide number of restaurant chains there have started approving this Indian product. It is a revolution waiting to happen and going to revolutionize the way Indian food is cooked”.  For this product we got over whelming response internationally. Right now dealers & distributors are being finalized and activated for various destinations like UK, Italy, England, middle East, Europe etc.  This product has been well received abroad. Curry is a big step forward and no body developed this product for overseas markets. Widely appreciated by house wives, since they find it of great value due to it 'ready to use'aspect. Three years from noiw it will be a rs 500 crore group," says Akshay, MD, Mrs Bector food Specialities Ltd.  Adding further, Akshay says, "Local market is equally important to us besides exports. Sooner or later others will also catch up in this race."  The most significant breakthrough happened when Mcdonalds approached Cremica Group for making buns for them. The Group enjoys an exclusive agreement with Mcdonalds for supplying buns, which adhere to international standards in quality.  

FINANCIAL STATEMENT:-

[all figures are in Rupees Millions]

PROFIT & LOSS ACCOUNT

Particulars 2007/03/31 2006/03/31 2005/03/31Sales Turnover and Other Income 1231.266 204.252 147.154Total Income 1231.266 204.252 147.154

Profit/(Loss) Before Tax 82.814 21.360 15.980Provision for Taxation 18.686 5.722 3.543Profit/(Loss) After Tax 64.128 15.638 12.437

Expenditures :Cost of Materials 767.342 114.132 80.760Finished Goods Purchase 0.795 0.000Manufacturing Expenses 91.433 10.248 7.950Personnel Expenses 74.364 14.407 8.678

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Administration Expenses 53.624 14.145 11.137Financial Expenses 24.524 4.209 1.729Selling and Distribution Expenses 123.825 22.424 14.694Increase/(Decrease) in Finished Goods (11.632) (2.474) (0.282)Depreciation & Amortization 24.177 8.801 6.508Total Expenditure 1148.452 182.892 131.174

Earnings Per Share (Rs.) 56.71

Capital structure:-

Authorised Capital :

No. of Shares Type Value Amount1125000 Equity Shares Rs.10/- each Rs.11.250 Millions375000 Preference Shares Rs.50/- each Rs.18.750 Millions

Total Rs.30.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares Type Value Amount770825 Equity Shares Rs.10/- each Rs.7.708 Millions360000 Preference Shares Rs.50/- each Rs.18.000 Millions

Total Rs.25.708 millions

Future prospects/ plans:

Mrs Bector's Cremica growing at rate of 30 percent per annum, it is expecting the turnover to touch 120 million USD by 2010. we have been quite successful in our value-addition. Our curries and gravies have added a new dimension to the cuisine in the west.

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SWOT ANALYSIS:-

STRENGTH

Management with vision Good corporate image Strong brand image Good customer base Very well Experienced human resource Good technological base with Foreign Collaboration High Quality Standards High Production Capacity Own Research and Development department Commitment for growth

WEAKNESS

Less advertisement

Lesser degree of promotional activity

OPPORTUNITIES

As quality and taste is good of the product of Cremica. As brand image is very good and production is too wide, Cremica can have

some good customers with whom direct business can be established. With this Cremica will have better Quantity and Regularity of sales.

Strict payments are strengths at times as well as weakness. If a moderate policy, as per present conditions are adopted, the dealers and customers shall be attracted to buy more and regularly.

THREATS

Companies from south are entering into Ludhiana market. Capacity of Biscuit making is increasing rapidly in comparison to increase in

market size, resulting into the addition of new players. This would result in price cuts, liberalization of payment, terms and conditions etc. the various functional areas.

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OBJECTIVE OF STUDY:-

The main objective of the study is to find out satisfaction level of the consumer towards Cremica Biscuits in every aspect.The second objective of the study is to compare Cremica and other brands in term of satisfaction level.The third objective of the study is to find out non user of the Cremica Biscuits.The last objective is to find out the areas where Cremica is lagging behind & needs improvement.

RESEARCH METHODOLOGY:-

The study is based on survey and fact finding enquiries with the Cremica Biscuits. It is aimed at collecting the relevant data and its optional usage keeping in view the objectives of research.

Scope of the Study:-

The study is limited in the scope in terms of Geographical areas of the Punjab. The study mainly concentrated in the customer perception of products.

Sample size:-

Sample size of the research is 200. i.e. 200 customers of different Segments. In Punjab with special emphasis on Ludhiana , Phillaur, Jalandher were contacted for the relevant information and data’s requirement.

Sample place:-

Sample place is Ludhina, Phillaur and Jalandher.

Sample technique:-

Non probability convenience sampling was done to select the most accessible population.

Research Instruments:-

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A structured Questionnaire had been used for the collection of data from the various customer. The questionnaire was to keep in view of the objectives of the study with the aim of collecting as much relevant data as possible.

Source of data:-

To make the research complete it is very important to have the necessary and useful data. Some time data can be available readily in one form. Some times they have to be collected research can be of two types.

Internal External

Data Usage:-

For the analysis and interpretation only primary data is used, however for the conclusion and recommendations the primary data along with verbal knowledge and information obtained from customers was used.

LIMITATION :-

Through carrying out the research study was a learning and enriching experience but I also faced some constraints and limitations:

The Ludhiana market was too vast and it was not possible to cover each and every person in the available short span period.

Generally, the respondents were busy in their work and were not interested in responding.

All of the respondents were using the more different type of biscuit and they were not able to properly differtiate between their products.

Most no. of people elaterid

Data Analysis and Interpretation :-

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Data after collection have been processed and analyzed in accordance with the outline laid down in the research plan. Data obtained during the study have been systematically tabulated and interpreted with the help of tables or pie charts

Data Presentations:-

1.No of people listen the name of Cremica.

No. of People PercentageYes 80%No 20%

INTERPRETATION :-Above graph shown the most no. of people (80%) listen

the name of Cremica and (20%) people not listen the name of Cremica.

GRAPH 1:-No. of people.

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2.No. of people from where listen the name of Cremica.

Sources PercentageBy TV advertisement 20%By TV news 10%By news paper 15%By magazine 15%By Other 40%

INTERPRETATION:-There are different sources of the listen the name of

Cremica. This graph showing that (40%) people listen the name of Cremic by other

and (20%) by TV advertisement,(10%) by TV news, (15%) by news paper and

(15%) by magazine. So most people’s sources, listen the name of Cremica by other.

Graph2.From where listen the name of Cremica.

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3.No.of people prefer Cremica Biscuit.

No.of people PercentageYes 70%No 30%

INTEPRETATION:- The chart showing that most no. of people (70%) prefer Cremica Biscuit and (30%) people not prefer Cremica Biscuit.

Graph3:-No. of people prefer Cremica Biscuit.

4.The satisfaction level for the Cremica Biscuit on the following features.

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Features Lower Level Medium Level High LevelTaste 20% 50% 30%Quality 10% 40% 50%Price 10% 50% 40%Size 30% 30% 40%Packing 30% 40% 30%Availability 60% 20% 20%

INTERPRETATION :-There are different type of features in which most no. of people Taste is medium level (50%), Quality is high level (50%), Price is medium level (50%),Size is high level (40%), Packing is medium level (40%) and the last feature

Availability is lower level (60%). So availability is not so good of the Cremica Biscuit.Graph4:-Satisfaction level of people.

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5.Rate the manufacturing company on the following features on a scale 1 to 10.

Brand Price Availability Taste QualityCremica 10 6 7 8Britaina 10 9 10 9Anmol 5 6 7 9Itc 10 6 10 7

INTERPRETATION:-The graph shows that Quality and Taste is good of Cremica biscuit.But compare to the Britaina biscuit is less, and when we talk about Anmol and Itc biscuit compare with Cremica then priceis good of Cremica biscuit.

Graph5:-Rating of branded biscuit.

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6.Quality of ingredient in Cremica Biscuit is………………….

Quality PercentageExcellent 15%Very good 25%Average 45%Good 10%Bad 5%

INTERPRETATION:-Graph showing that most no.of people response quality of ingredient in Cremica biscuit is Average (45%) is highest.

Graph6:- Response of the customers.

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7.Cremica biscuit is not available in the market then what will you do.

Biscuit PercentageWait for Cremica Biscuit 40%Purchase other Biscuit 60% INTERPRETATION:-This graph is showing that most people purchase other biscuit (60%) then wait for cremica biscuit (40%). Graph7:-Customer’s Loyalty.

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8.Low price biscuit available in the market then what will you purchase.

Biscuit PercentageOther low price biscuit 60%Cremica biscuit 40%

INTERPRETATION:-The graph showing that 60% people will prefer other low price biscuit and Cremica biscuit 40%. Because most people not depend on quality, only price should be low.

Graph8:-what you prefer when other low price biscuit available in the market.

9.Cremica biscuit is lowest in quality then will you accept it.

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People PercentageYes 40%No 60% INTERPRETATION:-most of people says that No, Cremica biscuit is not lowest in quality.We can say that Cremica biscuits quality is good.

Graph9:-Cremica biscuit is lowest in quality

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10.Do you suggest someone to prefer Cremica biscuit?

No.of people PercentageYes 45%No 55%

INTERPRETATION:-The chart showing that most of people (55%) do not suggest some one to prefer Cremica biscuit and (45%) says yes.

Graph10:-Suggest someone to prefer Cremica biscuit.

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11.Why do not prefer Cremica biscuit?

Cremica biscuit PercentageMore expensive 40%Bad quality 10%Not availability 30%Other 20% INTERPRETATION:-The chart showing that cremica biscuit is more expensive (40%) and not availability (30%) in the market that is why do not prefer Cremica Biscuit and other reason is not margin in Cremica biscuit and less advertisement.

Graph11:-Why Cremica biscuit not prefe

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FINDINGS:-

Most no. people says that availability is not very good of the company But quality is very good of the company. The demand of Cremica biscuit has been increases in recent years. Mrs.Bector only target large scale producers. Mrs Bector has a professional set up and rarely supply material to

manufactures directly.

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SUGGESTIONS AND RECCOMANDATIONS:-

The following suggestions and recommendations can be derived on the basis of the survey and the analysis being done of questionnaires filled during the survey. These suggestions are just suggestive and conclusive and may vary from individual’s survey.Advertisement and availability should be increased of the product.

Company should increase its credit period in order to attract more dealers and customers.

Demand pattern should be observed properly and production should be in harmony with the same.

Availability should be good.

POLICY IMPLICATIONS:-

By implementing the above mentioned suggestions the company will able to perform better in the market by making their good recognition among customers.

Appoint competitive staff. Provide fast services to the customers. Increase in no. of customers. Variety of options for customers. More trust among customers regarding Mrs.Bector food ltd. Helpful in long run to build goodwill. Helpful in making effective marketing strategy. Company can get benefit through share market Health, Safety and Welfare of employees and others affected by the business

undertaking will be treated with a level of importance equal to that of any other function

There are many advantages other than these. The impact will be of long term and help the company to grow & diversify itself in a different way.

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CONCLUSION:-

Cremica biscuit has being as no. 1 in quality and Taste. Almost as an average in terms of customer value & commitment, delivery. Almost all the factor are considered by people while making a purchase, but

factors like price, Quality, timely delivery, credit policy are of utmost important.

The complaints of Cremica biscuit are less with comparison to its competitors.

Product range of Cremica biscuit is the best. The image of Cremica biscuit of Mrs Bector Foods is very good.

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Questionnaire for measurement of Brand awareness and Brand Perception customer loyalty study

Name………………………. Contact no. ……………………..

Occupation…………………. Email id…………………………..

Dear Sir/Madam,

Please take a moment to share your experience. We are doing a brief

Survey to find out more about products of Cremica Company.

1. Have you ever listen the name of Cremica? Yes [ ]

No [ ]

2 From where you have listen the name of Cremica?

By T.V. advertisement [ ]

By T.V. news [ ]

By news paper [ ]

By magazine [ ]

By other [ ]

3. Do you prefer Cremica Biscuit?

Yes [ ]

No [ ]

(If your answer is yes then continue with the Q.no. (4). If your

Answer is No then go the Q.no. (11).

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4. What is the satisfaction level for the cremica biscuit on the following features?

Lower Level Medium Level High level

Taste

Quality

Price

Size

Packing

Availability

5. Rate the manufacturing company on following feature on a scale 1 to 10?

Price Availability Taste Quality

Cremica

Britaina

Anmol

Itc

6. Do you think that the quality of ingredient in Cremica Biscuit is.............?

Excellent [ ]

Very Good [ ]

Average [ ]

Good [ ]

Bad [ ]

7. If cremica biscuit is not available in the markets then what will you do?

Wait for cremica biscuit [ ]

Purchase other biscuit [ ]

8. If other low price biscuit available in the market then what will you purchase?

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Other low price biscuit [ ]

Cremica biscuit [ ]

9. If someone told you that Cremica biscuit is lowest in quality then will you accept it?

Yes [ ]

No [ ]

10. Do you suggest someone to prefer Cremica Biscuit?

Yes [ ]

No [ ]

11.Why do you not prefer Cremica Biscuit?

More expensive [ ]

Bad quality [ ]

Not availability [ ]

Other ….…………………………..

12. Your comment on Cremica Biscuit?

………………………………………………………………………………………

………………………………………………………………………………………

13. What would you say about Cremica for the future task?

. ...........................................................................................

…………………………………………………………………………………………

Thank you for your cooperation.

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Bibliography:-

Reference to a book:

C.R.KOTHARI (RESEARCH METHODOLOGY) KOTLER’BOOK (MARKETING MANAGEMENT)

Reference for an article:

STUDY OF THE RELATIONSHIP BETWEEN BRANDAWARENESS, BRAND ASSOCIATION, PERCEIVED QUALITY, AND BRAND LOYALTY

(Hindustan times)

BRAND PERCEPTION AND BRAND EQUITY OF BABY ACCESSORY PRODUCTS IN WORKING

MOMS’ PERSPECTIVE. (Business today)

Reference to web page:

http://www.aboutus.org/Fmcg.com

http://en.wikipedia.org/wiki/ Fast_moving_consumer_goods

http://www.robtex.com/dns/cremicafoods.com.html

http://www.mrsbectorfoods.com

http://www.tradekey.com/profile_view/uid/341150/Mrs- Bector-Foods-Specialties-Ltd.htm

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