Summer Internship Report
On
UNDERSTANDING CONSUMER BEHAVIOR AND PENETRATION OF
FCL PRODUCTS IN MODERN AND GENERAL TRADE
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Introduction of the Company
Future Consumer Limited is a subsidiary of the Future Group
India’s first sourcing to supermarket FMCG company
Wide range of FMCG products
More than 25 brands of Food products & Home & personal care products
Most of the products available at retail stores including Future Group’s Big Bazaar
FMCG 2.0, a new marketing strategy to make its presence all over India
Present turnover – Rs.3500 crores, estimated turnover of Rs.20000 crores by 2021
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FMCG Industry Size in India: US$ 900 billion in 2018
Product Lines:
a. Food –
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b. Home & Personal Care –
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Organizational Structure:
Holarctic Structure:
Governance structure characterized by a distribution of power
among self-organizing groups, rather than the top-down
authority
The goal is to ensure that those responsible for
completing work are given the authority to
decide how that work should be carried out
Holacracies lead to greater efficiency,
agility, transparency, accountability,
employee engagement and innovation
Holacratic Structure
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Sales Functioning
Responsibilities of the Sales force:
To achieve the sales target
Proper Merchandising
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Sales Functioning
Qualitative & Quantitative targets assigned to the Salesforce:
1. Qualitative –
intangible sales goal a business sets for itself
Example – Good merchandising, Brand promotion, retaining previous customers and keeping
customers satisfied
2. Quantitative –
Related to a numeric value
Egs. Monthly sales targets(10 lakh, 20 lakh, 50 lakh, etc)
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Sales Functioning
Beat Plan & Route Plan of the Sales Executive:
1. Beat Plan –
A Day level route plan made for field sales/marketing personnel to make visits to a number of
stores at a pre-defined frequency
A Beat Plan defines whom to visit, when to visit, based on company’s priorities on stores
category/segment
Visits made for the purpose of sales order collection, visual merchandising, etc
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Sales Functioning
2. Route Plan –
Travel plan used by a salesperson for making customers calls in a territory
Reduction in travel time & cost & increment in selling time
Improvement in territory coverage
A collection of beat plans
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Sales Functioning
Daily expected sales of KARA products is Rs.10000 to Rs.15000
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Sales Functioning
Motivation and compensation plans for the sales executive:
Incentives
Recognition
Awards
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SWOT Analysis of Future Consumer Limited
Strength Weakness
1. Dependent heavily on India, and is susceptible
1. Wide presence in India covering almost
to foreign players
all major cities and towns
2. Stiff competition from global players means
2. Efficient ,cost conscious committed market share growth is limited
quality service 3. Unorganised online stores
3. High brand equity in evolving market
4. Variety of products under single window
increasing the chances of customer time
and choices
5. Future Group as parent organisation
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Threats
Opportunities
1. Global players trying to enter into Indian
1. Evolving customer preference in
market
recent years
2. Low priced product could be perceived
2. Organized retail
as low quality product
3. Global expansion and tie-ups with
3. Government policies are not well defined
international brands
in country like India
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Internship Profile
Company : Future Consumer Limited, a Future Group Company
Division : Home and Personal Care
Domain : FMCG
Brands : Kara
Profile : Sales and promotion(Channel sales-B2B, Modern trade-B2C)
Location : Delhi NCR
Time period : Two months
Total sales achieved : Rs. 40,000(approx.)
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Objective of the project/ internship
To increase the sales of Future Consumer Limited’s personal care products like Kara wet wipes
& nail polish remover through Modern trade & General trade
To analyze the perception of Modern Trade buyers and identifying the gap between
company’s offerings and their requirements and subsequently provide measures to reduce it
Competitors’ activity tracking, monitoring and reporting
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Details of work assigned / KRAs
Channel Sales: A method of distribution used by a business to sell its products, usually by dividing
its sales force groups that focus on different selling channels
Consumer interaction activities planning and execution: It involved consumer interaction
activities in modern trade to understand the consumer buying habits
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Key observations and findings
1. General Trade (Channel Sales):
Based on the beat plan meetings, follow-up meetings, price margins & schemes provided and other benefits explained the
result was an increased sales value
FCL products’ visibility is rather low comparing to other brands
There exists a little gap in the distribution system and it needs to be regularly checked and worked upon to improve the
efficiency
Retailers’ major concern was getting the stock delivered on time
Distributors’ major concern was getting the payments from market on time
If the company want to go further and want to increase market share, the organization have to do marketing and
advertisement on regular basis
Retailers grievances needs to be addressed timely
Timely allocation of TOTs to various retailer would help increasing morale of retailers
Proper communication between retailers and distributors is must for overall business growth
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Key observations and findings
2. Modern Trade:
Visual merchandising impacts consumer buying behavior in positive manner. If visual merchandising is good and attractive,
the customers are attracted to the products and there’s an increase in sales
Approximately 50% of the approached customers took free samples of Kara products & out of those approximately 60%
bought the sampled product
Kara wet wipes’ sales is high in summers as compared to winters
The Power of Persuasion works only with politeness
Free sampling of products increases the probability of increase in sales of the product
The USP & special features of a product attract the customers & also aspire them to buy the product
Relevance of the Internship / Value Addition 19
to the Organisation
The internship helped us understand the customer’s perception towards
the brand
The internship helped us understand the customer needs which the
organisation can work upon while developing new product or doing
quality related research
Through our on the job training we promoted Kara products to the
customers who never knew about Kara products, hence creating new
customers for the organisation
In a span of two months our on the job training increased the sales of Kara
products, hence adding to the turnover
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CONCLUSION AND RECOMMENDATION
On a concluding note, it is clear that FCL is a fast growing FMCG company
and its expected turnover by 2020 is Rs.20000 crore
A push on the marketing portion is required to fill in the gaps between
company and potential buyers
A push on the marketing portion is required to fill in the gaps between
company and potential buyers
In Modern Trade sector the market viability is high and requires one-to-one
interaction of business with the customer
Proper Visual merchandising should be a priority in Modern Trade
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