A Project Report On

COMPETITIVE ANALYSIS FOR SUHANA MASALA PRODUCTS IN SOLAPUR MARKET.

Submitted to

MAEERs MIT College Of Management

By SONAL M BHATTAD
Roll No. RBM 06

Batch No. IV

In Partial Fulfillment of Post Graduate Program 2010-2011

MIT COLLEGE OF MANAGEMENT (MIT-COM), Pune

Preface
Seeing the surrounding competition in todays corporate world, it has become mandatory for every management trainee to couple his theoretical knowledge with some practical in the respective field . Thus the PGP Course curriculum has been architecture with the view of enabling the student to have an opportunity of bringing their theoretical knowledge to practice. Complying this objective, the training helps the student to develop their understanding about the industry with special emphasis on the development of skill in analyzing and interpreting practical problem through the application of theory concepts and techniques of the management. This trainee comprises of in depth understanding of various marketing strategies, consumer behavior ,strategy for the promotion etc . Training was done at PRAVIN MASALEWALE.

SONAL M BHATTAD

AKNOWLEGEMENT
Any purpose and its fulfillment requires rooted efforts for its completion. Many characters play a vital role. This is more when a project is undertaken directly towards a cause. First I would like to express my sincere thank to Mr. Sanjay Deshmukh

(Regional Sales Manager, ) who gave me an opportunity to work on this project

and was a constant source of inspiration throughout the project. Without his & his colleagues co-operation it would have been a difficult task to accomplish this project.

I would also like to thank our esteemed virtuous Director. Mrs. Sayalee Gankar for encouraging me in this endeavor.

I am also grateful to my internal guide Prof. Mr. S. Mishra for his guidance for completing this project . I would also thank our Course Coordinator Prof. Mrs.

Swati Bankar.
Finally I would like to thank to all those who were directly or indirectly concerned in making my project successful.

DECLARATION
I, Miss Sonal M Bhattad hereby declare that this project Competitive analysis for Suhana Masala products in Solapur market is the record of authentic work carried out by me during the period from 25th May 2010 to 30th June 2011 and has not been submitted to any other University or Institute for the award of any degree / diploma etc.

Signature
Sonal Bhattad

Date

INTRODUCTION TO STUDY

INTRODUCTION
This project named as Competitive Analysis for Suhana Masala products was carried out at Solapur. To understand the competitors strategy, strengths and weakness, to find out market position of Suhana in Solapur market, to study consumer behavior regarding packaged cooking masala products. Background of the topic-: Suhana is a well established brand, it has a good sales turnover, the company wants to focus on their category as everest is the leader in this category in addition there are also few local players in the market, thats why the need arise to study competition and understand the strengths & weaknesses of competitors hence, I chose this topic for my summer internship project. The objective of this research is to determine the competitive analysis in Solapur market. For this purpose, I designed a questionnaire and took feedback of retailers. Initially, I collected information about companys competitors for competition analysis. The duration of my project was 40 days.

1.2: THE INDUSTRY India is the second largest producer of food and holds the potential to be the biggest on global food and agriculture canvas, according to a Corporate Catalyst India (CCI) survey. The food industry in India comprises of the Food Production Industry and the Food Processing Industry. The Food Processing Industry is one of the largest in India it is ranked fifth in terms of production, consumption, export and expected growth. The Food Processing Industry provides vital linkages and synergies between industry and agriculture. The Food Processing Industry sector in India is one of the largest in terms of production, consumption, export and growth prospects. It covers a wide range of products Fruit and Vegetables; Meat and Poultry; Milk and Milk products, Alcoholic beverages, Fisheries, Plantation, Grain Processing and other consumer product groups like Confectionery, Chocolates and Cocoa products, Soya-based products, Mineral water, and High Protein foods and so on. Earlier, Food Processing was largely confined to the food preservation, packaging and transportation, which mainly involved Salting, Curdling, Drying, Pickling, etc. However, over the years, with emerging new markets and technologies, the sector has widened its scope. It has started producing many new items like Ready-To-Eat Food, Beverages, Processed and Frozen Fruit and Vegetable products, Marine and Meat products, etc. It also includes establishment of post-harvest infrastructure for processing of various food items like cold storage facilities, food parks, packaging centers, value added centers, irradiation facilities and modernized abattoir. Food processing involves any type of value addition to the agricultural produce starting, the post harvest level. The processed food industry provides safe convenience foods to consumers, and promotes diversification and commercialization of agriculture by providing effective linkages between the farmer and consumers in both domestic as well as international markets. The extent of processing can be categorized as follows: Primary Processing: Cleaning, grading, powdering and refining of agricultural produce, e.g., grinding Wheat into Flour. Secondary Processing: Basic value addition, e.g., Tomato-Puree, Ground Coffee, Cleaning and Processing of Meat products.
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Tertiary Processing: High value addition products like Jams, Sauces, Biscuits and other bakery products that is ready for consumption at the point of sale.

India has a strong agricultural production base with diverse agro-climatic conditions and arable land of 184 million hectares. It is one of the major food producers in the world and has abundant availability of wide variety of Crops, Fruits, Vegetables, Flowers, Live-stock and Seafood. India produces annually 90 Million tonnes of Milk (highest in the world); 150 Million tonnes of Fruits and Vegetables (second largest); 485 Million Live-stock (largest); 204 Million tonnes of Food grains (third largest); 6.3 Million tonnes of Fish (third largest); 489 Million Poultry and 45,200 Million Eggs. As a result, Indian food processing industry has become an attractive destination for investors around the world. The market for semi-processed/cooked and Ready-to-eat foods was around Rs 82.9 billion in 2004-05 and is rising rapidly with a growth rate of 20 per cent. Agriculture and agro products remain the most important sector of the Indian economy. They contribute nearly one third of the GDP and account for 64% of the workforce. In short, India has the following advantages in the Food Processing Sector: India is one of the largest food producers in the world India has diverse agro-climatic conditions and has a large and diverse raw material base suitable for food processing companies India has huge scientific and research talent pool A largely untapped domestic market of 1000 million consumers 300 million upper and middle class consume processed food 200 million more consumers were expected to shift to processed food by 2010 Well developed infrastructure and distribution network Rapid urbanization, increased literacy, changing life style, increased number of women in workforce, rising per capita income- leading to rapid growth and new opportunities in food and beverages sector Strategic geographic location (proximity of India to markets in Europe and Far East, South East and West Asia) The following are the major challenges faced by the Indian Food Processing Industry:
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 Consumer education that processed foods can be more nutritious Low price-elasticity for processed food products Need for distribution network and cold chain Backward-forward integration from farm to consumers Development of marketing channels Development of linkages between industry, government and institutions Taxation in line with other nations Streamlining of food laws

INDUSTRY PROFILE

INDIAN FOOD INDUSTRY India is the world's second largest producer of food next to China, and has the potential of being the biggest with the food and agricultural sector. The total food production in India is likely to double in the next ten years and there is an opportunity for large investments in food and food processing technologies, skills and equipment, especially in areas of Canning, Dairy and Food Processing, Specialty Processing, Packaging, Frozen Food/Refrigeration and Thermo Processing. Fruits & Vegetables, Fisheries, Milk & Milk Products, Meat & Poultry, Packaged/Convenience Foods, Alcoholic Beverages & Soft Drinks and Grains are important sub-sectors of the food processing industry. Health food and health food supplements are another rapidly rising segment of this industry which is gaining vast popularity amongst the health conscious Indians.

Fig. 2.1

India is one of the worlds major food producers but accounts for less than 1.5 per cent of international food trade. This indicates vast scope for both investors and exporters. Food exports in 1998 stood at US $5.8 billion whereas the world total was
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US $438 billion. The Indian food industries sales turnover is Rs 140,000 crore (1 crore = 10 million) annually as at the start of year 2000. The industry has the highest number of plants approved by the US Food and Drug Administration (FDA) outside the USA.

India's food processing sector covers Fruit and Vegetables; Meat and Poultry; Milk and Milk products, Alcoholic beverages, Fisheries, Plantation, Grain processing and other consumer product groups like Confectionery, Chocolates and Cocoa products, Soya-based products, Mineral water, High Protein foods etc. We cover an exhaustive database of an array of suppliers, manufacturers, exporters and importers widely dealing in sectors like the -Food Industry, Dairy processing, Indian beverage industry etc. We also cover sectors like dairy plants, canning, bottling plants, packaging industries, process machinery etc.

The most promising sub-sectors includes -Soft-drink bottling, Confectionery manufacture, Fishing, Aquaculture, Grain-milling and Grain-based products, Meat and Poultry processing, Alcoholic beverages, Milk processing, Tomato paste, Fastfood, Ready-to-eat breakfast cereals, Food additives, Flavors etc.

Packaged or Convenience food: This segment comprises of Bakery products, Ready-to-eat snacks, Chips, Namkeen and other processed foods/snack foods.

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2.2: MARKET STRUCTURE The Indian food industry is projected to grow by US$ 100 billion to US$ 300 billion by 2015, according to a report by a leading industry body and Technopark. The industry, estimated at US$ 200 billion in 2006-07, is projected to reach US$ 300 billion by 2015. During the period, the share of processed food in value terms is expected to increase from 43 per cent to 50 per cent.

Fig.2.2. Indian Food Processing Industry - Size & Growth

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2.3: FOOD INDUSTRIAL EVOLUTION Food processing Industry is one of the largest industries operating in India, and is highly fragmented. Segments: The Food Processing Industry operates across various segments that include:

Fruits & vegetables Meat & poultry Dairy Marine products, grains and consumer foods (that includes packaged food, beverages and packaged drinking water).

Fig.2.3 Segment-wise Industry structure.

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Fig.2.4. Food Processing Segments

Value addition of food products is expected to increase from 8 per cent to 35 per cent by the end of 2025. Fruit & vegetable processing is also expected to increase to 25 per cent of total production in 2025 from the current level of 2 per cent, states the CCI report. Dairy sector that holds highest share in processed food market holds large potential to be exploited. The report reveals that 37 per cent of the total dairy produce

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is processed of which only 15 per cent is done by the organized sector. Hence, there still lies a lot of scope for investment and development. The sector has attracted foreign direct investment (FDI) worth US$ 1,253.79 million from April 2000 to April 2011, according to the data provided by Department of Industrial Policy and Promotion (DIPP). The amount of FDI inflow for Food Processing Sector in India during the financial year 2010-11 up to November 2010 (8 months) is US$ 129.2 million.

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2.4: GROWTH TRENDS The food industry in India has taken off significantly well and will continue to grow rapidly given the unexplored potential in the sector. The growth in this sector is not only indicative of changing development patterns of the country, similar to the developed nations, but also the promise it holds in propelling growth of a certain section of society that has remained constrained for a long time. The government of India had also announced Vision 2015, which lays focus on enhancing the competitiveness of Food Processing Industry in both domestic as well as international markets along with ensuring stable income levels to farmers. The Vision 2015 provides for enhancing the level of processing to 20 per cent, enhancing value addition to 35 per cent and increasing the share in global food trade from 1.5 per cent to 3 per cent, by 2015.

Years Food Industry size (INR 000crores) Food Processing industry size (INR000 Crores) % Share of Food Processing Industry in total Food Industry % Share of organized sector in Food Processing Industry

2002-03 770 308

2006-07 880 374

201011(Est.) 1,100 484

201415(Est.) 1,320 660

40%

43%

44%

50%

19%

27%

36%

40%

Source: Ministry of Food Processing Industries, India Table. 2.1. Percentage share of Food Processing Industry

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2.5: MAJOR PLAYERS & THEIR MARKET SHARE Presence of numerous segments across the food industry has generated scope for the players to foray into diversified portfolios and avenues. HUL has entered the ready to eat segment through Indus Valley rice meals in seven flavours. MTR Foods has also launched a wide range of rice meals and other curries. Satnam Overseas has also entered this growing market with its Kohinoor brands of rice meals and curries. ITC s more than 50 packaged branded food products under Kitchens of India and Aaashirvaad brands with different varieties of ready to eat, cooked, food is gaining popularity in the market.

Major Indian and Overseas Players in the Food processing industry: ITC Limited (Packaged Foods & Confectionery) Parle Products Pvt. Ltd. (Business and Confectionary) Agro Tech Foods (Snacks) Amul (Dairy) Perfetti India Ltd. (Confectionary) Cadbury India Ltd. (Confectionary and Beverages) PepsiCo India Holdings (Snacks and Beverages) Nestle India Pvt. Ltd. (Confectionary) Britannia Industries Ltd. (Bakery Products) MTR foods limited (Snacks and Ice-cream) Godrej industries Limited (Beverages and Staples) Gits Food Products Pvt. Ltd. (Snacks and Dairy) Dabur India Ltd. (Beverages and Culinary) Haldirams (Bakery products and Snacks) Hindustan Unilever Limited (Beverages, Staples, Dairy)

2.51: Dabur India Ltd.: Dabur India Limited is the fourth largest FMCG Company in India with interest in Healthcare, Personal Care and Food Products. Building on a legacy of quality and experience for over 100 years, today, Dabur Amla, Dabur Chyawanprash, Hajmola and Real are leading in there category. Catering to the beverages and culinary
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segment, major products under Real are Fruits Juices, Cooking Paste, Coconut Milk, Tomato Puree, Lemon Drink and Honey. The company will further focus on hotels, restaurants and caterers in addition to retail sales.

2.52: Godrej Industries Ltd.: Godrej Industries Ltd., a member of the Rs.45 Billion Godrej Group is Indias leading manufacturer of oleo chemicals and food products. The foods division of Godrej Industries produces and markets edible oil, vanaspati, bakery fats, fruit drinks, fruit nectar and tomato puree. The companys strategy is to increase capacity utilization in edible oils and to tap the niche health conscious market.

2.53: MTR Foods Ltd.: MTR Foods Ltd is an ISO 9002 and HACCP certified company is amongst the top five processed food manufacturers in India. They manufacture, market and export a wide range of packaged foods to global markets that include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE and Oman. Their wide range of Ready-toeat curries and rice, Ready-to-cook gravies, Frozen foods, Ice Cream, Instants snacks and Dessert mixes, Spices(Turmeric, Coriander, Black Pepper) and a variety of accompaniments like Pickles and Papads. The strategy followed is competitive pricing and labour intensive products that predominantly cater to the Indian palette.

2.54: Hindustan Unilever Limited (HUL): The parent company Unilever is a Fortune 500 transnational, which sells Foods and Home and Personal Care brands in about 100 countries worldwide. Indias largest fast moving consumers goods company, with leadership in Home & Personal Care Products and Foods & Beverage. It caters mainly to the beverages, staples, snacks and dairy products with a wide range of products like Tea, Instant coffee, Biscuit, Ice Cream, Salt, Wheat flour, Instant Drinks, Soups, Jams and Squash.

2.55. ITC Ltd.: ITC is a listed company with British American Tobacco (BAT) holding 33 per cent stake and Institutional holding 50 per cent stake. ITC made its entry into the branded & packaged foods business in August 2001 with the launch of the Kitchens of India brand. A more broad based entry was made in mid 2002 and the company currently
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has a wider portfolio in the confectionery, Staples and Snack Food segments. It caters to the staples and snacks food segment having a product range of Wheat Flour, Salt, Ready-to-eat meals, Biscuits, Confectionaries, Snacks and cooking pastes.

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2.6: GOVERNMENT SUPPORT & POLICIES, ACTS, SCHEMES The Indian government has approved funds for establishing 15 mega food parks across the country; Food Processing Secretary Ashok Sinha said In the wake of social responsibility, the Food Ministry is considering a new law restricting the amount of food wasted at Indian weddings. The Union budget 2011-12 has also allocated US$ 135 million to the Food Processing Ministry from the previous US$ 90 million. As a measure to boost investment in agriculture the minister extended the Viability Gap Funding Scheme (VGFS) for public private partnerships (PPP) for setting up modern storage capacity besides giving infrastructure status to cold chains. Some of the important policy measures and initiatives taken by the Government for the sector are: Most of the processed food items have been exempted from the purview of licensing under the Industries (Development & Regulation) Act, 1951, except items reserved for small-scale sector and alcoholic beverages; Food processing industries are included in the list of priority sector for bank lending in order to ensure easy availability of credit to them; Excise duty on ready to eat packaged foods, instant food mixes like dosa and idli mixes, aerated drinks, as well as on fruits and vegetables processing units, have been reduced. Excise duty on processed meat, fish and poultry products reduced from 8% to nil. Excise Duty of 16% on dairy machinery has been fully waived off. Excise duty reduction from 16 per cent to 8 per cent on a few more items including water purification devices, veneers and flush doors, sterile dressing pads, specified packaging material and breakfast cereals. Excise duty exemption on refrigeration equipment will enhance investments in the cold chain sector and help food and beverage sector. Customs duty on food processing machinery and their parts have been reduced from 7.5% to 5%. A large number of foreign collaborations have been approved. Up to a maximum of 24% foreign equity is allowed in SSI sector. Use of foreign brand names is now freely permitted.

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 MRTP (Monopolies & Restrictive Trade Practices Act) rules and FERA (Foreign Exchange Regulation Act) regulations have been relaxed to encourage investment and expansion by large corporate. Most of the items can be freely imported and exported except for items in the negative lists for imports & exports. Capital goods are also freely importable, including second hand ones in the food processing sector. Units in Export Processing Zone / Free Trade Zone and 100% Export oriented units can retain 50% of foreign exchange receipts in foreign currency accounts. 50% of the production of Export Processing Zone / Free Trade Zone and 100% EOU units are saleable in domestic tariff area. All profits from export sales are completely free from corporate taxes. Profits from such exports are also exempt from Minimum Alternate Tax (MAT). The government has proposed for the establishment of mega food parks in different parts of the country, which will be run by a Special Purpose Vehicle created by all the stakeholders to create an integrated value chain from the farm gate to the consumer. Another strategic initiative taken in India is to establish cold chain facilities including refrigerated vans all over the country, to provide relief to the farmers, to enhance the shelf life of their product and retain its quality.

The vision 2015 of the Government of India for the food-processing sector aims at:

Enhancing and stabilizing the income level of the farmers Providing choice to consumers in terms of wide variety and taste including traditional ethnic food

Providing greater assurance in terms of safety and quality of food to consumers Promoting a dynamic food processing industry Enhancing the competitiveness of food processing industry in both domestic as well as international markets

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THEROTICAL BACKGROUND
Competitive analysis
Competitive analysis, as the name implies, is an exploration of the companies in a given industry sector or market niche that are competing with your companys products or services for market share. The analysis may be an in-depth exploration of the top five competitors, or a larger number of competitors could be examined (typically with less depth in the analysis). In most cases, the client will have identified the target competitors for you. While this article focuses on competitive analysis in the for-profit arena, it is worth noting that nonprofit organizations can benefit equally from this analysis (which they might term a comparative analysis, if they viewed the other organizations as working toward a common goal with them). Understand the competition The primary benefits of any competitive analysis are a better understanding of what your competitors are doing, what they are offering to customers, and how to maintain your competitive advantage. The findings from this analysis are likely to factor strongly into your own companys strategic planning. However, this is definitely not the only take-away from the process of analyzing competitors. Build domain knowledge Another benefit of competitive analysis involves expanding the knowledge base of those working on your website or web application. The analysis offers information about content and functionality that they have probably not considered. This is especially true for newcomers to your industry and should be fairly common; not everyone will be a subject matter expert. Looking longer-term, this educational process benefits not only the current project, but also any future project in that same industry. My own experience speaks strongly to this, as I have been both an Information Architect (IA) for a web design firm and a Business Analyst (BA) for a large hospital system. In the IA role, I would be working on six projects with little domain knowledge in any of those areas; competitive analyses definitely assisted in getting to know those industries. As a BA, learning about competitors in the medical field on one project would enhance my performance for the next project. Identify best practices Exploring competitor websites offers the opportunity to discover what is working well for them, as well as what is commonly being offered via the Web. For example, if all the competitors are offering specific content and functionality, users will likely expect your site to offer similar content and functionality. If they are absent, users may go to the competitor site instead. It is important to note that user expectations often go beyond just giving the information or offering the functionality, and move into questions of information design and interaction design. In other words, what is the quality of the user experience? Poor implementations are unlikely to result in higher conversion rates. Depending on the budget for the project and what questions we are trying to answer, I may conduct user testing of the competitor websites/web applications. My goals here are simple: Learn from their mistakes, avoid reinventing the wheel in my iterative design process, and find a better implementation from where they left off. If I am working on a design (or redesign) of a massive informational website with hundreds of pages, I might focus the testing on how they labeled and organized their content. Alternately, for a website with lots of transactional processes, I would focus on how they approached those tasks.

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SCOPE & LIMITATIONS OF STUDY:SCOPE: 1) The study made and data collected is useful for the future planning of the company. 2) The study is further important to the organization in turning the companys strategies as per local market expectation. 3) The study is helpful to the organization to understand current market situation strategies and policies adopted by competitor. LIMITATIONS: The project title "Competitve analysis for Suhana Masala products in Solapur market" was limited to Solapur city. The other regions are not covered under this study. It is a hard fact that each study suffers from some limitations. So in the case with this study, some of the limitations of the study are, as follows: 1) The information is collected from the retailers, the monthly sales figure given by them is based entirely on their own judgment. So a few of them might have given the wrong figures related to their monthly sales. 2) Another limitation was that some of the retailers were busy and could not give appropriate information. 3) And also few retailers did not want to share any information.. 4) The survey conducted personally was expensive.

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OBJECTIVES OF STUDY
PRIMARY OBJECTIVE To study Competitive Analysis For Suhana Masala Products in Solapur Market.

SECONDARY OBEJECTIVE 1) To study the competition in masala products in Solapur market.

2) To find out market potential of Suhana masala products in Solapur city.

3) To identify the major competitor operating in Solapur city.

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COMPANY PROFILE Pravin Masalewale founded in 1962, is the largest producer, processor and marketer of spices in Maharashtra. It was pioneered by entrepreneurial couple -Shri. Hukmichand Chordia and Sou. Kamalbai Chordia. A home based business ran by the couple then; Pravin has grown today to include three state of the art manufacturing facilities, offering over 125 ground spices and spice blends. Their production in Hadapsar, Yawat and Shirwal plant is approximately 1500 tons/month with an earning of Rs.217crore p.a. This range of products caters to the varied tastes and requirements of their Eighty Million plus customers across the world. Raw spices are procured after a stringent selection process of reputed suppliers from all over India and abroad. The spices are processed in unique customized plants designed specifically for the company. The Research and Development lab works closely with the procurement; Production and Marketing teams to assure the flow of quality products. Once a 2 person home enterprise, Pravin now employs more than 1000 people, and reaches its consumers through a network of 580 distributors and 1.07 Lakh retailers. Pravin Masalewale is run by 3 generations of the Chordia family. The founders provide the wisdom and guiding philosophy for an enterprise whose products are consumed everyday in over millions of homes across the planet. Pravin Masalewale has three factories based in Maharashtra. Their main Plant situated in Hadapsar, has their Head Office and they have plants in Yavat plant in PuneSolapur National highway and Shirwal Plant in the District of Satara. They have distributors all over India, and exports to EU, USA, Canada. Special Blended Spices of Suhana is launched in Middle East this year. Pravin Masalewale has 4 different brands of products. They are Suhana, Sarvam, Seva and Ambari. They produce about 125 different products. Tag line is used is Tastemakers of India, since 1962. The branding is done based on quality of the products they offer and usage. Suhana is the premium quality product and are mainly targeted for special occasions. While Ambari is targeted for daily consumption, Sarvam is value for money and Seva is targeted for commercial purposes. Pravin Masalewale is the first company to get AGMARK certificate in 1976 for standards in marketing of agricultural products and they adhere to ISO 9001:2008 standards.
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ORGANISATION STRUCTURE

DIRECTOR

SALES MANAGER

REGIONAL SALES
MANAGER

AREA SALES MANAGER

TERRITORY SALES MANAGER/ SALES EXECUTIVE

TERRITORY SALES SUPERVISOR / SALES REPRESENTATIVE

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VISION AND MISSION

We shall deliver food product and related services that will conveniently facilitate at best value,tasty,nutritious and safe food for the family and products for the professional catering industry. We shall endeavor to keep a close and consistent contact with our customers needs across various regional tastes and customs in order to establish a national leadership in our business and an ongoging relationship with our customers. In serving the needs of our customers we shall always act nimbly and decisively and shall consciously prevent system and producers from rendering us slow and bureaucratic. We are committed to improve processes, practices and system for manufacturing, marketing and delivery of our products and services through effective implementation and continual improvement of Quality Management System and Food Safety Management System so as to enhance customer satisfaction and growth of all business partners.

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RESEARCH METHODOLOGY
Research Methodology
Background of the topic-: Suhana is a well established brand, it has a good sales turnover . The objective of this research is to determine the Competitive Analysis For Masala Products in Solapur Market and to find out market potential of Suhana masala products. For this purpose, I designed a questionnaire and took feedback of retailers. Firstly, I took information about competitors, like who are competitors for competitive analysis. I got the companies brand positioning, and other factors for competition analysis. . Preparation of the research plan:1. Title: Competitive Analysis for Suhana masala products in Solapur market. 2. Statement of Problem: To analyze the competition for Suhana masala in Solapur Market. 3. Source of Data collection: The task of data collection begins after a research statement, research design and plan was formed. While deciding the method of data collection which is going to be used for study, the researcher should consider two types of data viz; Primary and Secondary source of Data collection. 4. Training & information from guide: I got valuable information from company guide and also he provided training and showed me how to interact with retailers in the market. 5. Geographical scope: The sample size covers the major area of Solapur city during the survey.
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6. Duration: The time allotted for this project was 40 days. As the time span was sufficient for the survey I have covered all the main areas in the Solapur. The list of the locations are as follows a) 70ft road. b) Jule solapur c) Akkalkot road d) Kanik nagar e) Daji peth f) Navi peth g) Damani nagar h) Vijapur road i) Railway line j) Ashok chowk k) Budhwar bazaar l) Midc m) Hotgi road n) Gharkul o) Lashkar p) Nai zidagi

7. The basis for selecting data: Sampling (Non- Probability) Method. 8. Technique study: Scheduled type. 9. Implementation of Plan: Initially, I took information about

competitors, like who are competitors for competition analysis. I got the companies brand positioning, and other factors for competition analysis.

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Later, I went through the process of filling the questionnaires from retailers.

Sampling selection:Sampling process: Element: Retailers Sample unit : Retailers Extent: Solapur city Time: 25 May, 2010 to 30 June, 2011

Sampling frame: Sampling frame for my survey was Solapur city. Sample unit: The Retailers and the Consumers were selected as sampling unit. Survey method: Personal survey method has made to collect the data. Sampling method: Sampling method adopted for this market research was random sampling or non probability sampling, as I selected the various Retailers and Consumers purposefully. Area sampling method was used to select the sample. First of all I selected the Solapur city for my survey, I divided the city into major areas. I found out awareness, market position and promotional support, trade scheme and competitors of Suhana. And for retailers I found ou tthe reason for why
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consumers use particular brand name, quality, availability, price and satisfaction regarding price etc. Sample size: Sample size 575 retailers.

Collection of the Data In my Research work, I have collected data through primary (direct source) as well as secondary sources. Primary Data: Survey was conducted in Solapur city. Primary data I have collected through personal interview. For this I designed questionnaire and took interview of retailers

Secondary data: Secondary data was used for carrying out research process successfully. I have collected secondary data from my company project guide and from companys website.

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DATA ANALYSIS AND INTERPRETATION

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The findings as per the questionnaire are as follows:1.) Do you sell special blended masala? Ans:-Yes, It was found that out of 575 retailers almost 99% (569) of kirana, grocery and supermarket type of shops in solapur sell special blended masala.

Sales

99% 1%

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2.) What are the existing brands of masala available in your shop? Ans:-The existing brands available in the shops of Solapur marketare Everest, Suhana, Badshah, MDH and Ramdev.

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3.) Which are the top three masala of your shop? Ans: - Top three masala in Solapur market are Everest, Suhana, Badshah. This is shown with the help of table and chart. Name of the brand Everest Suhana Badshah Total In percentage 50% 35% 15% 100%

In percentage
60% 50% 40% 30% 20% 10% 0% Everest Suhana Badshah

In percentage

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4.) What are the schemes provide by these brands of Masala? Ans:-About 40 kirana shops from 575 provide 2% discount, 3 supermarkets whose sale is more they provide 10% to 20% discount ,8 grocery shops provide 3% discount, 6 bakery shops provide 2% discount and rest of the retailers sell on MRP. If there is discount offered by the company itself then discount is also provided by the retailers to customers.
Sr no. Type of shop

1 2 3 4 5 6

supermarket Kirana shops grocery bakery Rest of the retailers total

No.of shops 3 40 8 6 518 575

Discount provided 10 to 20 % 2% 3% 2% MRP rate

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5.) Which range of masalas are prefered more by the customers ? Ans:- The flavours prefered by the customers are given below :a.)garam masala b.)-sambhar masala c.)mutton masala d.)pav bhaji masala e.)other like pani puri and chat masala This is given in form of percentage in the table below:Name of flavours garam masala sambhar masla mutton masala pav bhaji masala other like pani puri and chat masala Total In percenatge 38% 32% 15% 12% 3% 100%

Sales
garam masala sambhar masla mutton masala pav bhaji masala other like pani puri and chat masala

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6.) Which of the following do customers expect in a masala? Ans:-Allmost 70%of the customers are quality conscious at the time of purchasing masala. They purchase masala on the basis of brand name. About 15%of customers are very price centric, 10% of customers look in for attractive packing and 5% of customers wants more quantitiy. Product features Quality Price Quantity Packing Total Customer preference 70% 15% 10% 5% 100%

Sales

Quality Price Quantity packing

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7.)According to you what things are required for publicity of masala? Ans: - According to retailers advertising on T.V. , radio ads, newspapers is a must. Some retailers suggested that discount , offers and schemes should be provided by the company for promotion.

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8.) Comments/Suggestions. Ans:- a.) Company should improve their channel of distribution by dealing with more retailers specially in areas like Lashkar, Midc. b.) Company should produce the products according to the customers demand in quality, taste and price by introducing more new range of varieties of special blended masala. c.) Company should give replacement for unsold products if there is no sale of masala packages.

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OBSERVATIONS
Everest is demanded more than the other competitive brands. 80% of retailers keep large stock of Everest product according to the survey. Everest has large market potential in Solapur market. Most of the respondents came to know about Suhana through retailers. Suhana is among the top 3 selling brand at retailers counter.

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SUGGESTIONS AND RECOMMENDATIONS

1) Company must try to increase market potential and sales promotion in market. 2) Company must try to provide proper follow up with dealears. 3) Company should concentrate more on television for advertisement as mostly people are attracted through television adds. 4) Many existing retailers are not happy with the service of the company, so serious steps should be taken.

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CONCLUSION AND RECOMMENDATION

On the basis of the data collected and the tests conducted I have arrived at the following conclusions: In the current scenario market condition is very competitive. The company must apply strategies which will enhance their product in a better condition and will satisfy their end consumer with better result. To survive in todays world, a company must have knowledge about their competitors, their strengths & weakness, and their strategies. Though Suhana is renowned and well established company but, the company should focus on certain areas like: Packaging of product and its proper handling, retailers margin, communication between retailers and the company, and lastly on the advertisements and the promotional activities. Thus, company can provide some attractive schemes for their channel of distribution which will impact directly on their sales, in this way they will improve their market penetration. The company should also consider its consumers needs and wants regarding price, quality, availability of the product, and thus, produce the product as per the requirements of the consumers. In this way company can tackle its various problems and will survive in todays cut-throat competition in a better position.

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ANNEXURE

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Questionnaire

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Questionnaire
A B Shop name Shop type

Shop area and no.

Contact no.

1) Do you sell special blended masala? a) yes b)no

2) What are the existing brands of masala available in your shop? a)Suhana c)MDH b)Everest d) Badshah e)Ramdev f)Bedekar g)other(Specify)

3) which are the top three masala of your shop? a) b) c) 4) What are the schemes provided by these brands of masala?

5) Which flavours of masala are prefered more by the customers? a) pav bhaji masala c) chat masala b) chole masala d) sambar masala e)other(specify)

6) Which of the following do customers expect in masala? a) Price b) quality c) quantity d ) packaging

7) According to you what things are required for publicity of masala?

8) Comments / suggestions (if any):

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BIBLIOGRAPHY

MARKETING MANAGEMENT 9 EDITION PRENTICE HALL PVT.LTD.

th

BY Prof. PHILIP KOTLER

MARKETING RESEARCH 2nd REVISED EDITION 2004 NEW AGE INTERNATIONAL PUBLISHER

BY C.R. KOTHARI.

COMPETETIVE STRATEGY NEW YORK THE FREE PRESS, 1980

BY M. E. PORTER

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