PRESENTED BY

KIRAN JOHN
B2083
MBA A

Reg. No: 17210059

 INDUSTRY PROFILE

 An average Indian shopper currently buys less than 150 grams of chocolate a year, while a typical UK
shopper buys more than 6 kilograms of chocolates every year.
 According to 'India Chocolate Market Outlook, 2022", Mondelez India, Ferrero and Nestle India top
the charts with more than 65% of the overall chocolate market revenues .
 International brands like Mars and homegrown brand Amul are slowly trying to gain the momentum.
 Chocolates are consumed as indulgence and not as snack food, as prevalent in western countries.
 Almost 75% chocolates arc impulse purchases. Chocolates are bought predominantly by adults and
gifted to children.
 The space allocated for the chocolates was less when compared to the total area of the shop.
 PROBLEMS & CHALLENGES IN
INDIAN CHOCOLATE INDUSTRY

 TEMPERATURE – requires precautionary to ensure the preservation of chocolates especially in summer.

 UNAVAILABILITY OF CONTROLLED REFRIGERATION - India does not have controlled
refrigerated distribution.
 RAW MATERIALS - price of cocoa has been increasing.
 TRANSPORTATION -Chocolate needs to be distributed directly, unlike other FMCG products. 90% of
our products are sold directly to retailers.
 THREAT FROM IMPORTED BRANDS -Free availability of imported brands bought through illegal
routes pose a threat to the domestic chocolate industry .
CLASSIFICATION OF RETAIL
ENVIRONMENT

 HIGH END GROCERS

 LOW END GROCERS
 FOOD STORES
 CHEMISTS
 PAN KIOSKS
 STAND ALONE SUPER STORE
MAJOR PLAYERS IN INDUSTRY
Market Share

 Mondelēz India Foods pvt ltd. 9%

 Nestle 1…
nestle

 Ferrero Rocher 2%
amul

 Amul 5% ferro rocher

 Mars mondelez

66% others
 COMPANY PROFILE

 Mondelēz India Foods pvt. ltd. is is a part of the Mondelēz International group of companies .
 Cadbury started its operation on India at 1949 by importing products
 In 2013 Mondelez Inc. acquired Cadbury’s India
 Its headquarters is in Thane.
 Mondelez employs about 107,000 people around the world
 Mondelez is the market leader in chocolate confectionery business with a market share of 66%.
 VISION, MISSION AND GOALS

VISION STATEMENT
To build the best snacking company in the world.
MISSION
Our mission is to create more moments of joy and build the best snacking company in the world by
growing our people, growing our business and growing our impact on the world around us.
ORGANIZATIONAL STRUCTURE
 FUNCTIONAL DEPARTMENTS

 Finance and accounts

 Human resource and administration
 Legal and secretarial
 Operations and materials
 IT and systems
 Marketing and customer care
PRODUCT CATEGORY
SWOT ANALYSIS

STRENGTH WEAKNESS
 Very strong brand equity in India.  Poor food manufacturing technology in India
compared to current international
 Due to its 54 years presence in India – has deep
manufacturing units.
penetration – 2100 distributors; 450,000 retailers, 60
 Limited Key products because only one central
mid urban (22%) customers.
brand in India. Pralines range present in other
 Leader in three sectors; Chocs (70% share), Confec countries are totally missing in India.
(4%), food drinks (14%).  “Make in India” tag once the economy opens up
wore and imports rush in.
 Low cost of production due to economic of scale.
 Chocolates are more susceptible to weather
That means higher profits. Better market penetration.
conditions and can become a ‘molten mess’.
 Second best manufacturing location throughout
Cadbury Schweppes.
 They have debt in their capital structure, which means
they are more financially leveraged.
 SWOT ANALYSIS cont.

OPPORTUNITIES THREAT
 Tremendous scope for per capita consumption (160 gms of 8 –  Brands such as ITC venturing into confectionery
10 k business.
 Increasing per capita national income resulting in higher  Globalization will bring in better brands for upper
disposable income end of the market (Liest, Monarch, Godiva,
 Growing middle class and growing urban population. etc…).This would eat into the market share of
Mondelez.
 Increasing gifts cultures in India due to cross cultural mix.
 The growing health concerns of consumers
 Substitute to “Mithais” with higher calories/cholesterol. worldwide as a serious threat to their product.
 Increasing departmental stores concept which prompts impulse
at cash counters.
 Globalization: optimal use of resources as a result of
globalization .
PROBLEM- CENTRIC STUDY

TOPIC :
“A STUDY ON FACTORS AFFECTING NON-ACHIEVEMENT OF VPO IN COOLER OUTLETS”
OBJECTIVES OF THE STUDY
 TO ANALYSE THE REASONS BEHIND NON ACHIEVEMENT OF VPO IN COOLER OUTLETS
 TO KNOW WHETHER THE COOLERS ARE IN PROPER UTILITY
 TO ANALYSE THE REASON BEHING COOLER NOT IN USE
 TO CHECK THE PURITY OF THE COOLERS
PROBLEM STATEMENT

 The problem taken for the study is the nonachievement of target per Visi Coolers in the
invested retail outlets .
 The target per outlet is set based on the size of the cooler provided . Each outlet is
expected to meet this minimum sales target of chocolate products alone .
 It has been found that a few retailers are not achieving this minimum target. This
minimum target must be achieved so as to get minimum returns for the companies
investment in the coolers.
POPULATION
 The 4323 shops in Trivandrum are under placed under 9 distributors namely – Anand Agencies, Biju Traders ,FIZA
AGENCIES, Karthika Agencies, PRIYANKA ENTERPRISES, S.B.ENTERPRISES, SREE DEVI AGENCIES, V.S.
THIRRUVANGADAM & SONS and Zion Agencies.
 Out of these 9 , 2 agencies Anand and S.B.Enterprises were taken . Anand had 314 outlets and S.B Enterprise had
995 outlets with a total of 1309 outlets. Out of these 1309 outlets Anand has 60 and SB has 226 cooler outlets with a
total of 286 cooler outlets.
DATA COLLECTION
 A population of 286 outlets and surveyed them using a questionnaire.
 A standard questionnaire is prepared and the responses from each merchant is recorded.
 This questionnaire has both multiple choice and descriptive type of questions to add stronger commendations on the
study These data where then filtered and converted to an excel format for analysis.
TOOLS FOR DATA ANALYSIS
 Descriptive Statistical tools like percentage analysis and charts like bar diagrams and pie charts were used to analyse
the collected data.
 FINDINGS

 Small coolers of size 16l and 33l are the most used .They are most preferred because of their minimum space requirement
and easily achievable target VPOs.
 Of the 286 stores , 102 are food stores and 111 are LEG which are the most wide category of stores.
 Out of the 286 coolers provided , only 117 are kept ON i.e. only 41% is in proper usage.
 Out of the 286 outlets 24 are closed permanently. These shops are still present in the billing list . This accounts for a 8%
loss in the VPO.
 Out of 286 Outlets , 65 coolers are not in the shop i.e 23% are missing or stored away.
 Of the 197 outlets with present in shop, 73 are not pure. i.e 37% of the coolers are used to store other items, which is a loss
for the company as indirectly it helps in the sale of those products.
 Out of the 128 shops which are given coolers but are not using, 36% are not using due to high electricity consumption
,23% are stored away due to space requirement and 19% are faulty.
 Here 67 shops out of 286 have not achieved VPO , in the 67 outlets , 21 outlets are closed i.e. 31% , another 31% do not
achieve VPO due to melting of chocolates and 13 shops do not take chocolates because of holidays i.e.19%
 55 coolers were discovered in shops which where not tagged. These would be lost if not tagged as soon as possible
 CONCLUSION

 Based on this study nonachievement of target per Visi Coolers in the invested retail outlets and the problems faced
by the PC’s which hinder the achievement of VPO are analysed. Is easy to see the various reasons and causes of
low threshold sales of chocolate .
 Out of the 286 coolers provided , only 117 are kept ON. 36% are not using due to high electricity consumption,
23% are stored away due to space requirement and 19% are faulty. 67 shops out of 286 have not achieved VPO ,
in the 67 outlets , 31% outlets are closed another 31% do not achieve VPO due to melting of chocolates and 19%
shops do not take chocolates because of holidays .Thus the two main reasons for the nonachievement of VPO are
unbilled closed shops and melting of chocolates.
THANK YOU