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DECLARATION
I, your name to declare that the research project report entitled MARKETING
STRATEGIES OF Bonn Biscuits being submitted for the partial fulfillment of therequirement for Bachelor of Business Administration is my own endeavors and it
has not been submitted earlier to any institution/university for any degree.
Place: ( )Date:
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ACKNOWLEDGEMENT
My first regards are to almighty God, it was my great trust and belief on him
which enabled me to move on the righteous path.
First of all my whole gratitude towards INDUSTRY GUIDE NAME for
having given me the opportunity to do a summer training project report on
the topic MARKETING STRATEGIES OF Bonn Biscuits.
I also express thanks to my friends who help me in the successes fully
completion of my research report.
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PREFACE
To start any business the success entirely depends on the marketing research done
about the particular product and the consumer attitude towards the product.
Marketing research plays a vital role in a business to make it success. The topic
for research was
MARKETING STRATEGIES OF Bonn Biscuits
I have tried to put my best effort to complete this task on the basis of skill
that I have achieved during my studies in the institute.
I have tried to put my maximum effort to get the accurate statistical data, if
any error or any mistake in collecting the data, please ignore it.
In this project work, a survey was conducted about the prescribing
preferences of consumer, the market share of various brands of biscuits. The
survey was conducted in Ludhiana. A sample of 100 retailers had been taken.
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TABLE OF CONTENTS
CHAPTER I PAGE NO.
COVER & TITLE PAGE 1
CHAPTER II
DECLARATION 2
ACKNOWLEDGEMENT 3
PREFACE 4
SYNOPSIS 8
EXECUTIVE SUMMARY 9
CHAPTER III
INTRODUCTION 10
AREA OF STUDY 11
RESEARCH OBJECTIVE 12
DATA COLLECTION METHOD 20
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CHAPTER IV
LITERATURE REVIEW 22
CHAPTER V
COMPANY PROFILE 26
INDUSTRY PROFILE 27
MARKETING STRATEGIES 31
MANAGEMENT HIERARCHY 33
COMPARISON WITH OTHER BUSINESS 37
CHAPTER VI
PROJECT SUMMARY 39
CHAPTER VII
BRAND NAME 40
DISTRIBUTION SYSTEM 43
CONSUMER BUYING BEHAVIOR 48
CHAPTER VIII
RESEARCH METHODOLOGY 52
DATA ANALYSIS & INTERPRETATION 55
MARKET POTENTIAL 60
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CHAPTER IX
SWOT ANALYSIS 62
RETAILERS VIEW AND COMPLAINT 64
RECOMMENDATION 66
LIMITATION 67
CHAPTER X
CONCLUSION 68
BIBLIOGRAPHY 69
QUESTIONNAIRE 70
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SYNOPSIS
TOPIC Marketing Strategies of Bonn Biscuits
OBJECTIVE To find the market share and market
potential of Bonn Biscuits.
RESEARCHERS NAME Tarun Sharma
AREA OF RESEARCH Ludhiana
SAMPLE UNIT Retailer
SAMPLE SIZE 100 only
TYPE OF RESEARCH Exploratory
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EXECUTIVE SUMMARY
Boon biscuits is a part of Bonn bread. When this industry to enter in the biscuit
industry then a lot of competitors were there but they didnt frustrate and entered
with good quality and good distribution channel.
The major customer knows to Bonn Biscuits through its quality and family
pack. Now Bonn Biscuits has good market condition in Ludhiana and very soon
its probability to cover in all over India. Customer more attract from its good
quality. It has a strong image of customer mind.
I , a student of BBA - Vth Sem, Gulzar Group of Institutes,
Ludhiana did my summer training project report in Bonn Biscuits on the topic of
Effectiveness of Marketing strategies of Bonn Biscuits.
During the study, I met various executive and staff of organization. Without
whom its project would not have been a successful. I also interviewed a few major
customers to know about their opinion about the company and other competitors.
This helps me in data collection, marketing strategies and assessment. I was able
to know about customer preference and choice of Bonn Biscuits brands and other
biscuit brand and problems.
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INTRODUCTION
Retail outlets coverage in respect of supplies & competitors activity, it is
not only the part of topic but also a very important aspect of business organization.
In present scenario, competitors are major problem of business. Now a days, each
and every organization first of all try to demolish the competitors steps. If any new
organization going to start then firstly it will sure focus on activity of competitors
and according to that next steps arise.
Another part of topic is market share and market potential of Bonn biscuits.
Market share and potentiality helps into organization that where organization
stands in the market or what are the major chances to increase sales or cover the
entire market. This important aspects gives knowledge to organization about
quality, price or choice of the consumer etc. For all the circumstances, retailers
play important role for organization. They give a perfect information to the
company that helps to take next steps.
So perfect supplies, competitors activity, market share and potentiality are very
important part of business industry.
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AREA OF STUDY
LUDHIANA:
JAMALPUR
SAMRALA CHOWK
HARGOBIND NAGAR
CHANDIGARH ROAD
TAJPUR ROAD
DUGRI ROAD
MODEL TOWN
PRATAP NAGAR
INDRAPURI
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RESEARCH OBJECTIVE
To find out the retail outlets coverage in respect of supplies & competitive
activity of Bonn biscuits.
To know the market share of Bonn Biscuits.
To know the market potential of Bonn Biscuits.
To know the factors affecting sales.
To know the buying behavior of consumer toward Bonn Biscuits biscuit.
To know the effectiveness of advertisement.
To know the retailers/wholesaler expectation from the Bonn Biscuits.
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RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. One can
also define research as a scientific and systematic search for pertaining information
of a specific topic. It is the pursuit of truth with the help of study, observation,
comparisons and experimentation.
The following are the seven steps of a research:-
1. Specifying research objectives.
2. Preparing a list of the needed information
3. Designing the data collecting project
4. Selecting a sample type
5. Determining sampling size
6. Organizing and carrying out the fieldwork
7. Analyzing the collected data and reporting the finding
These steps are not a contrived sequence of independent steps; they consist of a
number of interrelated activities.
To take an example, one must have a good understanding of the research
objectives. Now we discuss the seven steps in details:
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(1) SPECIFYING RESEARCH OBJECTIVES
In this step of the research process, researchers must first obtain answers to
the questions,
What is the purpose of this study? and
What are the objectives of the research?
If these questions are not properly answered at the outset, the study is likely to be
misdirected and to pursue vague or obscure goals, the probable result will be that
the collected data will not be as valid and/or reliable as desired.
Clearly, this step in the research process must involve both the manager and
the researcher. One source of research error is poorly conceived study. Much of
the responsibility for specifying research objectives necessarily lies with the
manager.
Researcher cannot be expected to answer such questions as What is the
purpose of study Without a great deal of assistance. Hence, if this step in the
research process is not to be major source of error, the manager and the researcher
must collaborate in a clear and precise identification of the study objectives.
(2) PREPARING A LIST OF THE NEEDED INFORMATION
After a satisfactory statement of the studys purpose and objectives has been
established, it is necessary to prepare a list of the information needed to attain the
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objectives. The contents of such a list will be determined by the objectives of the
research and the situation leading to the research request.
(3) DESIGNING THE DATA COLLECTION PROJECT
After the research objectives have been specified (step 1) and the list of
needed information has been prepared (step 2), the researcher should determine
whether such information is already available, either in company records or in
outside sources, certainly, the researcher should not collect data from the field until
the appropriate secondary sources of information have been reviewed. If the
needed information is not available from secondary sources, the researcher will
have to collect data in the field, and so it will be necessary to design a data
collection project.
PROBLEMS IN ACHIEVING THE SCIENTIFIC METHOD:
Researcher encounter many possible sources of error when designing a data
collection project. Some of these include using a poor or inappropriate research
design not using experimental designs where possible); using a large scale study
instead of a small scale study, or vice versa; using poor experimental designs; and
still others.
To minimize the possible sources of error associated with designing a data
collection project, the following five issues must be given attention first:-
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A.SHOULD THE RESEARCH BE EXPLORATORY OR CONCLUSIVE?
To a great extent, this issue is likely to be determining by the research objective
and the situation leading to the request for research. Exploratory research is
likely to be used when investigating a potential opportunity or problem and
conclusive research is likely to be used when the research is likely to be used
when the research findings are expected to result in specific decision being
made or specific actions being taken.
B.WHO SHOULD BE INTERVIEWED AND HOW?
Next, the researcher must identity who has the needed information how it can
be obtained.
C.SHOULD ONLY A FEW CASES BE STUDIED, OR SHOULD A LARGE
SAMPLE BE USED?
If the study is a conclusive one, and if the findings are to be representative
of the universe, the researcher may want to use a large scale statistical study.
However, if the project is concern with finding a best way rather than a
typical way of doing something such as laying out the main floor of a fast food
restaurant the research may well consists of the analysis of a few selected cases.
D. HOW WILL EXPERIMENTS BE INCORPORATED IN THE
RESEARCH
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If conclusive research is being undertaken, the research project may include
one or more experiments of some kind. If an experiment is a part of the
research design, the researcher must decide such things as where and when
measurements will take place and how the experimental variable will be
applied.
E. HOW SHOULD THE DATA COLLECTION FORM BE
DESIGNED?
When it is necessary to collect original information, researchers will do so
by either questioning or observing respondents. As it is common in most
research projects to employ a number of field workers, some procedure must be
used to standardize all of the data that is collected. This is accomplished by
giving all interviewers the same data collection from to use when they interview
or observe respondents. In that way, all of the interviewers or field workers
will be collecting comparable data.
(4) SELECTING A SAMPLE TYPE
Almost all marketing research projects are interested in information about a
large population such as all families with children at home or all retail grocery
stores. As it is impractical to collect data from all embers of such large
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populations, a sample is selected. Various type of samples are possible, but they
can be classified into two general categories they are:-
1.Non Profitability
2. Probability
(5) DETERMINING SAMPLE SIZE
The researcher must also decide how large a sample to select. Marketing
research sample very from fewer 10 to several thousand. The research must
consider the problem at hand, the budget and the accuracy needed in the data
before the question of sample size can be answered.
(6) ORGANIZING AND CARRYING OUT
THE FIELD WORK
Fieldwork includes selecting, training, controlling and evaluating the
members of the field force. Their methods used in the field in the field are very
important, for they usually involve a substantial part of the research budget and are
a potential source of error through lack of both validity and reliability. Fieldwork
methods are dictated largely by the method of collecting data, the sampling
requirements, and the kinds of the information that must be obtained.
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(7) ANALYSING THE COLLECTED DATA AND REPORTING
THE FINDINGS
After all the interviews and / or observations have been made,the completed data
collecting forms must be processed in a way that yield the information the project
was designed to obtain. First, the forms needed to be edited to ensure that
instructions were followed, that all questions were asked observations made, and
that the resulting data are consistent and logical. Next, the data is prepared for
tabulation. This means that the data must be assigned to categories and then coded
so the responses can be put in to the computer. The responses are usually tabulated
and analyzed on a computer.
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DATA COLLECTION METHOD
Data collection is an elaborate process in which the researcher makes a planned
research for all relevant data. Data is the foundation of all market research. Data
or facts may be obtained from several sources. Data can be classified as:-
1. PRIMARY DATA
2. SECONDARY DATA
(1) PRIMARY DATA
Primary data is the data gathered for the first time by the researchers. If the
secondary data is found to be inadequate or unavailable, the researcher goes for
primary data.
COLLECTION OF PRIMARY DATA
Collection of primary data is a task demanding technical expertise. The provider
or the source of primary data is termed as respondent. A respondent may give
information actively or passively.
(2) SECONDARY DATA
Secondary data is the data borrowed from secondary sources by the researcher.
Secondary data can be internal or external i.e. internal records of the company or
information available from library and other statistical organization.
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In a Market Research Project Field Work has a very vital role to play. As a
matter of fact, its the back bone of any Market Research Project. Field Work
basically consists of collection of primary data. In this project, researcher had to
undergo a lot of Field Work. For the purpose researcher has to visit various
cinema halls, public attractive places, colleges and school canteens etc.
The whole area, which was to be surveyed, was divided into different
segments randomly. Simultaneously survey of both retailers and consumers was
carried out. The research worked in the field for a span of half month.
Later on whole data, which was collected from field, was well scrutinized
and tabulated for analysis. Its interpretation has been provided in most easy to
understand manner with the help of suitable diagrams and charts.
I hope that this project will clear all the doubts and perceptions, which come
up in your minds occasionally and I hope that our data analysis and key findings
will throw some more light on Biscuit Industry. At the end I am very much
confident and pleased to state that this project will solve the purpose of Bonn
Biscuits.
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LITERATURE REVIEW
MARKETING
Marketing is a societal process by which individuals and groups obtain what
they need and want through creating, offering and freely exchanging products and
services of value with others or otherwise it is the process of planning and
executing the conception, pricing, promotion and distribution of ideas, goods,
services to create exchanges that satisfy individual and organizational goals.
MARKETING STRATEGY
Marketing strategy is a set of objectives, policies and rules that leads the
company's marketing efforts. It is the marketing approach to accomplish the bread
objective of the marketing approach to accomplish the bread objective of the
marketing plan. The various process of marketing strategy is given below:
1. Selecting largest markets segmentation
2. Positioning
3. Product
4. Price
5. Place
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6. Promotion
7. Research and development
8. Marketing research
(1) MARKET SEGMENTATION AND SELECTING TARGET
MARKET:
It is an effort to increase a company's precision marketing. The starting
point of any segmentation discussion is mass marketing. In mass marketing,
the seller engaged in the mass production, mass distribution and mass
promotion of one product for all buyers. Market segment consists of a large
identifiable group within a market with similar wants, purchasing power
geographical location, buying attitudes or buying habit. It is an approach
midway between mass marketing and individual marketing. Through this the
choice of distribution channels, and communication channels become much
easier. The researchers try to form segments by looking at consumer
characteristics; geographic, demographic, and psychographic. After
segmenting the market then target market selected.
(2) POSITIONING: The positioning is a creative exercise done with an existing
product. The well known products generally hold a distinctive position in
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consumer's minds. The positioning requires that every tangible aspect of
product, price, place and promotion must support the chosen positioning
strategy. Company should develop a unique selling proposition (USP) for each
brand and stick to it, bonn consistently promotes its DAP fertilizer by Higher
yield at lower cost. As companies increase the number of claims for their
brand, they risk disbelief and a loss of clear positioning. In general a company
must avoid four major positioning errors. Those are under positioning over
positioning, confused positioning and doubtful positioning.
(3) PRODUCT: A product is any offering that can satisfy a need or want. The
major types of basic offerings are goods, services, experiences, events, places,
properties, organizations, information and ideas. The company gives more
importance in quality, packaging, services etc. to satisfy the customers. The
products has it's life cycle. The product strategies are modified in different stages
of product life cycle.
(4) PRICE: It is the most important aspect in company's point of view. Price of
the product will be decided by the company according to the competitor's price.
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(5) PLACE: This plays a major role in the entire marketing system. the company
emphasis on it's distribution network. Proper distribution network gives proper
availability of the product.
(6) PROMOTION: Promotion is the one of the major aspects in marketing
strategies. By adopting various promotional activities the company create strong
brand image. It also helps in increasing the brand awareness. It includes
advertising, sales promotions and public relations etc.
(7)RESEARCH AND DEVELOPMENT: After testing, the new product
manager must develop a preliminary marketing strategy plan for introducing the
new product in to the market. The plan consists of three parts. The first part
describes the target market's size, structure and behavior. The second part out
lines the planned price, distribution strategy and marketing budget for the first
year. The third part of the development describes the long run sales and profit
goals and marketing mix strategy over time.
(8)MARKETING RESEARCH: Marketing research is the collection and
interpretation of facts that help marketing management to get products more
effectively into the hands of consumers, Marketing research encompasses all
information pertinent to this task, all the appropriate technique.
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COMPANY PROFILE
The Pioneer & The Vision
Mr. Manjeet Singh, a modest man, who made a humble beginning with a grand
Vision, has come a long way in 25 years, but if something has not changed along
the way, it is his modesty and his Vision: To provide products rich in Quality and
Goodness across an ever-growing network of Consumers, with a motto of
Everyday Everywhere making our products an essential part of the life of every
individual
From Humble Past to Glorious Present
The Beginnings
The journey of a thousand miles is made up of a million steps, but the most
important one is always the First step
In 1985, we took our first baby step with a single traditional oven in Ludhiana,
consuming 5 bags of flour per day and made our entry into the Food market by
providing Bread of superior quality to the local distributors. Even though our
products were circulated only at Punjabs grass root level, mainly Ludhianas rural
mandis (markets), never ever did we compromise on the standards of Service or
our dedication towards efficient distribution because we have always believed that
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the quality of SERVICE defines a companys image and its perception in the
market.
Soon, we made a shift from the Traditional Oven to a Rotary Rack, and within 2
more years, the number of Rotary Racks had increased to 3, consuming 80-90 bags
of flour per day.
The Overdrive Mode
Some stories end with Success. Some BEGIN with itIn 1994, we came up with
the first Automated Food Processing Unit of North India Bonn Nutrients. In
1995, a new brand Prime Time was launched (High Volume bread a first in
India)! Prime Time was a huge success, so much so, that to meet the market
demand, the company had to double its production capacity within 6 months!
In 2000, to meet an ever increasing Demand, a second Automated Food Processing
Unit was brought up which produced 50,000 loaves of bread everyday. By now,
we had become a leading Regional player of North India, and with our impressive
Distribution network, the service had grown to a circle of 400 km.
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Within 5 more years, 3 more production lines were introduced, taking the
production up to 2.5 lakh loaves of bread per day. Along side bread, Bonn was
now also producing 1.5 lakh units of other Bakery items on a daily basis.
From Bread to Biscuits and Beyond!
A company that wants to touch the sky, would surely Diversify
With a vision to diversify, in 2002, Bonn started a Cookies plant, and became the
first in India to start production of cookies on an industrial scale. Bonn also
introduced other products like Bar Cakes and a Fresh Bakery items range which
were lapped up by the markets. In 2004, Bonn Biscuits were launched, for which a
fully Automated Online Biscuit Plant was started.
Quality Policy
We are committed to manufacture & supply quality products, which exceed customer
satisfaction and market requirements.
The HACCP system (hazard analysis of critical control points) adopted by us, enables to
demonstrate our commitment with respect to safe food, which ensures that our products are free
from physical, chemical and biological hazards.
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Network of Bonn
National
Besides the Domestic market, Bonn has gradually been expanding across
continents. Our products are now also being distributed to the UK, the US,
Australia, Africa, the Gulf, the UAE, and Netherlands.
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International Network
Our products are now also being distributed to the UK, the US, Australia, Africa,
the Gulf, the UAE, and Netherlands.
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INDUSTRY PROFILE
It is based on the survey conducted in Ludhiana on Biscuit industry. The
applicability of various branding strategies play crucial role in marketing in
product. The applicability has grown due to the liberalization, competition and
technological changes taking place in corporate world.
In this project the various branding strategies adopted by the company has
been studied and compared on the basis of current market scenario. It gives the
idea about the market share enjoyed by the different companies in the Biscuit
Industry. It provides the adequate coverage of many issues related to biscuit
industry. The objective of this report is to give the market share of Bonn Biscuits
in the Ludhiana. It has been made possible by knowing the consumer's behavior
and by studying the patterns adopted by the retailers. It gives us very precise view
about the existing demand of Bonn biscuits and demand of their products as
compared to other competitors.
Biscuits derive its name from a French word meaning twice backed bread,
Biscuits in general have a good shelf life, which is higher than all other snack
items available in the market.
India is the second largest producer of biscuits in the world after the U.S.A.
but still the per capita consumption is only 2.3 kg/year of developed countries. As
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per the latest survey done by N.C.A.E.R., 49 biscuits are consumed in rural areas.
The penetration of biscuits into households stands at an average of 83.2% with the
rural penetration at 77% and urban penetration at 88%.
Biscuits are reserved for the small-scale sector but there are strong
possibilities of the industry being deserved in line with the government policy of
liberalization. The net effect thus would be greater choice for the consumer as well
as a check on the costs.
The country production of the biscuits during 1997-98 was 18.6 Lac tons of
which 1/2 was manufactured by the organized sector. The industry turn over was
5322.7 Crores of which organized sector contributed 2519.3 crores.
The annual growth rate of the industry is about 12.5%. However, the growth
of cream biscuits, assorted or special variety is the range of 30-40%.
The organized sector consists of large, medium and small scale biscuit
manufacturers who produce packed biscuits.
The major players in this sector are Britannia, Creamica, Parle G, Bonn
Biscuits etc. the unorganized sector comprises of small bakery units, cottage and
household type manufacturing plants. These units distribute their biscuits in the
surrounding vicinity of their manufacturing locations of say 20-50 kms. The
country production of biscuits during 1998-99 is estimated to be about 19.5 lack
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tons. Out of which 1/2 again is expected from unorganized sector. The industry
turnover is estimated to cross 6100 crores of which organize sector is expected to
contribute 2990 crores.
Bonn Food Industries, makers of bonn biscuits, doubled capacity from 25
tonnes a day to 50 tonnes and plans to be a national brand soon. In an aggressive
mode, the North dominated biscuit player has increased its ad budget to Rs. 5 crore
this year from Rs. 3 crore last year. Bonn has also recently invested about Rs. 5
crore in the modernization and expansion of its production and packing its
production capacity of 40 tonnes per day to 100 tonnes per day by next year.
The low priced brand claims to have a 15 per cent market share in the North
and is aggressively eyeing a bigger bite of the Rs. 2,500 crore biscuit industry.
The brand plans to gain a 40 per cent market share in the North by the year of
2014.
The company's strategy has been to attract new consumer segments and widen its
consumer base with its well packaged low priced offerings. Bonn's success has
also come from its formidable.
I hope that this project will clear all the doubts and perception, which come
up in your minds occasionally and I hope that my data analysis and key findings
will throw some more light on Biscuit industry. At the end I am very much
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confident and pleased to state this project will solve the purpose ofBonn Biscuits
BISCUITS.
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MARKETING STRATEGY
Marketing is not Euclidean geometry a fixed system of concept. Rather
marketing is one of the dynamic fields within the management arena. The market
face continually a new challenge everyday and companies must respond to it
positively. Therefore it is not surprising that new market idea keep surfacing to
meet new market place challenges.
The market process is applicable to more than goods and services. Anything
related to market including ideas, events, policies, prices and personalities comes
under market strategy. However it is important to emphasize opportunity in the
market through market strategy.
Following strategies adopted by the organization.
A strong quality of the product and customer satisfaction:
Customers always believe in good quality product. In my survey, I found that in
percentage term more people is quality conscious and not price conscious.
Customer satisfaction is very important part of the organization that at any cost
they have to fulfill.
A growing relationship with customer and customer retention:
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Nowadays a good relation with customer is very important for organization. Sale
is totally depending on the relation with the customers. Customer's retention is
also a major aspect for growing business. It means keep the old customer and try
to make new customer.
Focus on competitors activity:
Every organization should be careful about it's competitors step, because they can
disturb the growing sales process of the organization.
A growing emphasis on global thinking and local marketing planning:
Companies are increasing by pursuing market beyond their borders. When they
enter other countries they must follow the tradition of that country and also they
make plan for local market that which type of product has more demand and how
can it run in the market.
Promotional Strategy
Under the market strategy promotional idea is very important. Organization
provides some schemes or rebates to retailers or consumers. They make
advertisement according to convenient of the people and the feature of the product.
So on the basis of marketing strategy of organization runs in the market. It is
several types of which makes helpful to increase sales and turnover of the
organization.
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MANAGEMENT HIERARCHY
Bonn Biscuits is headed by Managing DirectorMr. Manjeet Singh.
HIS FUNCTION ARE AS FOLLOWS
Overall responsibility of operations of the company which includes business
services, corporate planning, procurement, manufacturing quality, human
resources development and customer support services.
Ultimate responsibility for the product quality, overall responsibility for the
implementation and maintenance of the quality management system.
MANAGEMENT REPRESENTATIVES
The MD appoints management representatives and he has defined authority and
responsibility for ensuring that quality system requirement of the company are
implemented and maintained
The responsibilities are:
- Responsible for co-ordination and implementation of the quality system.
- Convening management review committee meetings.
- Coordinating with HRD for the training requirement relating to the quality
management system of the company.
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DEPARTMENTAL HEADS
Various departmental heads are appointed who are responsible for the following:
- Developing and maintaining quality system.
- Document and data control.
- Identify and control of nonconforming products/process/system in the dept.
- Taking timely corrective and preventive action for the non-conformity
observed.
- Identifying training needs of the personnel in the department.
MARKETING AND SALES ORGANIZATION (MSO)
Marketing and sales organization of Bonn Biscuits is directly responsible for all
product management and sales operation for both domestic and overseas market.
PROFESSIONAL SERVICES ORGANIZATION (PSO):
PSO of Bonn Biscuits provides solutions in the area of development, integration,
facilities management and training. Bonn Biscuits strengthened its PSO to meet the
growing demand for enterprise solution in key vertical segments comprising
industries in telecommunication, manufacturing, finance and banking, government,
utilities and transportation.
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MANAGEMENT INFORMATION SYSTEMS (MIS):
The MIS department handles information system needs of Bonn Biscuits. All
major functions like sales order processing and invoicing PPC, Finance, HRD,
inventory, Call maintenance etc are fully computerized and integrated with each
other having electronic mail facilities, all customer orders are transferred
electronically to the plant for execution.
FINANCE & ACCOUNTS
Finance and Accounts department is responsible for keeping accounts of the
company, arranging and managing the funds, credit control etc.
CFO
DGM
FINANCE MANAGER
EXECUTIVES
Finance department is under the control of CFO. It comprises of Accounts
Executives. Account section generates information/data relating to operational
activities of the firm. The end product of accounting is financial statement such as
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the Balance Sheet, Income statement and statement of changes in financial
position.
These statements and reports assist the Finance Manager in assessing the past
performance and future planning for the firm.
Finance manager deals with cash and Bank. The company has well-developed
system of accounts. The responsibility of recording the day to day transaction is
vested with the deputy general manager. Under the finance manager, there are the
executives.
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COMPARISON WITH OTHER BUSINESS
Generally all organizations have competitors in the market. A particular
organization always comprises with other same business and according to market
share we clarify the brand of product is giving more challenge to my product.
When I was in the field for Bonn Food Industries. I found many products, which
can be compared with Bonn Biscuits biscuit. As a conclusion I found that
particularly in my provided area Bonn Biscuits is really doing well and its
performance is on surprising level. Their Bonn Biscuits got market Leader
position and main competitor is BRITANNIA with the second position. Except
these two branches so many brand is as a competitor of Bonn Biscuits and they are
covering some parts of markets. These brands are PARLE-G, ANMOL &
CREAMICA.
Bonn Biscuits is basically providing good quality biscuits but Britannia is
not only providing good quality but also providing small chocolate with small pack
of biscuits. Parle-G has good taste for especially for children. Yammi biscuit is
only selling of Anmol because it is very tastey.
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In my provided area the share of the market is as follows.
Bonn 42%
BRITANNIA 35%
PARLE-G 20%
ANMOL 3%
These are the main competitors of Bonn Biscuits and BRITANNIA comes in
second position but Bonn Biscuits is largest demanded biscuit. Customers like its
various brands.
When we compared with other businesses then we follow the quality, price,
distribution system, promotional strategy etc. of the competitors. In this area,
Bonn Biscuits is doing well. The business of BRITANIA is also growing with
some good brand of products. Anmol, Parle-G, & Creamica are also giving good
competition to Bonn Biscuits and BRITANNIA biscuit organization. So these are
the comprises explanation with other business of biscuit.
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PROJECT SUMMARY
After going thick on the things, now time is to make a complete picture. While
making a product a SKU (stock keeping unit) of the shop retailers think about the
GMROI (gross margin return on investment) and they promote the brand which
provide them highest. They can expect return in the form of profit margin,
company schemes, window display and reference of the shop. Among these
company schemes make the difference and are the highest sources of motivation
after profit margin. Retailing demands a constant push from the company.
Marketer needs to use advertising and brand building strategies to address
the discerning buyers and retail push to in different buyers. The manufacturer
should understand consumer behavior because retailers cant help quality and
price. It is only up to manufacturers to deliver what consumer wants. I need to
stress on it because 58% retailers said that it is demand why they sell Bonn
Biscuits. 61% agree that at retail shop it is brand popularity, which determine the
purchase of biscuit. There is a greater need to understand the retailer behavior.
Considering them as a team, working for the company may help them to be
attached to the company. There should be a feeling of belonging to the company
in inner of the retailers. This can be done by setting values club for retailers so that
they may exchange views with the company and help in understanding consumer
behavior.
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BRAND NAME
Cream Delight
Sweet Cream
Bourbonn
CrackNuts
Kookies
Butter Bonn butter
Butter Bonn cashew butter
Coconut
Nice
Glucobon
Twin Bite
Saltino
Marie Day
Premium Cakes
Sweet Desire
Cup Cakes
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PRODUCTS OF BONN BISCUITS
Cookies Premium Cream
Regular Creams Crackers
Glucose
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DISTRIBUTION CHANNEL
MANUFACTURER
STOCKIST
DISTRIBUTOR
Distribution in marketing context means the transfer of goods from producer
to consumer, as we all know. In a distribution system, we are to first find out what
kind of distribution channel is to be selected so as the firm can get a convenient
supply and economic maintenance of profit.
In Biscuit Industry, where flow of goods, matters a lot, it is must to consider the
following points very carefully.
Selection of channels for distribution
Warehousing and Transport
RETAILER
CUSTOMER
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Operational Research
Logistic Mix
1. SELECTION OF CHANNEL OF DISTRIBUTION
For selecting a channel for distribution following points are to be considered.
NATURE OF PRODUCT: Bakery items are consumer goods and are constantly
in demand. Once a consumer does not find it in the retail shop, head may instantly
choose the another, at least for trial and here beings the decrease of market share.
Bonn Biscuits should not be always available in retail shop but be visible to
customer also.
FINANCIAL POSITION OF MANUFACTURER:- The fewer the number of
organization in the chain, smaller the burden on the manufacturer. Expenditure on
distribution through alternative channels must be noted.
The distribution margin is affected with the selection of distribution channel.
VARIETY OF PRODUCT TO BE SOLD:- More the variety of product, more
the responsibility of marketing department of the company.
2. WAREHOUSING AND TRAINING
Warehousing and transport are essential part of distribution system. Warehousing
should be done in a manner, minimum maintenance of cost should occur. That
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should be a source of quick supply to customer because from this place basic
supply starts.
Transport is costly, so decision should be taken as to whether warehouses are to be
centrally situated or decentralized. To maintain economical support, control of
cost of vehicle is essential and shipment must be planned so those vehicles are
effectively employed.
3. OPERATIONAL RESEARCH
Operational research is valuable in improving aspects of distribution process,
How?
By mathematical representation of whole distribution system.
Noting and comparing transport cost.
Measuring warehouse operation cost.
Measuring Stock Level
4. LOGISTIC MIX
There has been little close examination of possible saving in area of physical
distribution, now known as logistic.
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"Customer want products available in right sizes, at the right time, in right packet
and right condition. This is possible if five key decisions are coordinated.
Facility
Inventory
Communication
Utilization
Transport
It is important to remember the physical distribution management refers to the flow
of goods from end of production time to customer. Logistic incorporates the total
flow, information into, through and out of system.
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CONSUMER BUYING BEHAVIORUnderstanding the buying behavior of the target market as the essential task of
marketing management under marketing concept. The consumer market consist of
all the individuals and households who buy or acquire good and services for
personal consumption. The buying behavior tries to find out the answers for the
questions, who buys? How do they buy? Where do they buy? Do they buy?
(A)FACTORS INFLUENCING CONSUMER BUYING
BEHAVIOR
There are four major factors that influence the buying behavior such as cultural
factors, social factors, personal factors, and psychological factors.
(1)CULTURAL FACTORS: Culture is the most fundamental
determinant of a person wants and behavior. Values, perceptions,
preferences, and behavior are the main
variable under culture of an individual. Each culture contains sub-culture
like nationality, religious group, geographical area, and linguistic divisions
etc.
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(2)SOCIAL FACTORS: A consumer behavior is also
influenced by social factors such as the consumer reference group family
and social roles and status.
(3)PERSONAL FACTORS: A buyer decision is also
influenced by his or personal characteristics, notably the buyers age,
lifestyle, occupation, economic circumstances etc.
(4)PSYCHOLOGICAL FACTORS: a person buying choices
are also influence by four major psychological factors such as motivation,
perception, learning belief and attitudes.
(B) BUYING DECISION PROCESS
It includes buying roles, types of buying and steps in buying process.
(1)BUYING ROLE
The buying role could be classified into four parts. These are initiator,
influencer, decider and buyer.
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(2) TYPES OF BUYING BEHAVIOR
Consumer decision taking varies with the type of buying decision. There are
four types buying behavior such as Complex buying behavior, Habitual
buying behavior, Variety seeking buying behavior.
(3) STAGES IN BUYING DECISION PROCESS
Here are five stages in buying decision process namely problem recognition
search, evaluation of alternatives purchase decision and past purchase
behavior.
(i) NEED RECOGNITION
The buying process starts with the buyers recognition of a problem of need.
The buyer sense a difference between his actual state and desired state.
(ii) INFORMATION SEARCH
There are different sources from where a consumer can gather information
like personal sources commercial sources, experimental sources.
(iii) EVALUATION OF ALTERNATIVES
After gathering information about different products the customer will be in
a fuss as to choose which product among the mainly alternatives consumer
usually evaluate the alternatives on traditional basis, on the basis of utility
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function etc. from the many alternative consumers at last choose the best one
for him.
(iv) PURCHASE DECISION
A consumer who decides to execute purchase intention will be making up to
five purchase decisions.
(v) POST PURCHASE BEHAVIOR
After purchasing the product and services the consumer will experience
some level of satisfaction or dissatisfaction with the product and services
that will influence subsequent behavior. If consumer is satisfied he may
show the probability of buying the product the next time, satisfied customer
will say good thing about the product, proving the statement that "satisfied
customer is the best advertisement. "The dissatisfied customer, may take
some action against it. They may try to reduce the dissonance by
abandoning returning the product.
Understanding consumer needs and buying process is the foundation of any
company. By understanding how buyers go through problem recognition,
information search evaluation of alternatives, the purchase decision and post
purchase behavior marketers can pick up many clues as to how to meet
buyers need.
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RESEARCH METHODOLOGY
Al l progress is bo rn of inqu i ry, doub t is of ten bet ter than over
conf idence for i t leads to inqu i ry leads to invent ion is a famous
Hudsons dictum in context of which the significance of research can well be
understood.
1. I visited the dealers & retailers and gathered information required by the
questionnaire.
2. For employing strong based to the research I tried to inquire the position of Bonn
Biscuits, and how satisfied they are with them if they are already selling those.
3. Final ranks were obtained by giving weight to individual ranks possessed by the
respondent to make the research more reliable.
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RESEARCH PURPOSE
To analyze marketing strategies of Bonn Biscuits
To identify the major segment
To know the requirements
RESEARCH DESIGN
Sample survey: Retailers
Area of survey: Ludhiana
Data type: Primary data and secondary data
Sample selection: Convenience
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Data collection method
The data for research report was collected by retailers .
RESEARCH INSTRUMENT
Questionnaire and observation are two basic methods of collecting primary data. In
my study we have employed both the methods for the collection of primary data that
suffices all research objectives. Secondary data sources like WEBSITE of company,
Google are also used.
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DATA ANALYSIS
Questions pertaining to supply of biscuits
1) Are Bonn biscuits available in your shop ?
[ ] YES [ ] NO
Ans: (a) 92 % retailers are having Bonn biscuits.
(b) 8 % retailers are not having Bonn Biscuits
biscuits.
PERSONAL OPINION: Retailers prefer Bonn biscuits
because it is very tasty & most of the retailers have due to
brand name.
2) If yes, how many brands are available ?
Ans: Out of 100 retailers it is found that 82 retailers
have Bonn biscuits. Out of 88 retailers:
(a) 6 % retailers keeping 0-5 brands of Bonn Biscuits
biscuits.
(b)33 % retailers keeping 6-10 brands of Bonn Biscuits
biscuits.
(c) 43 % retailers keeping 11-15 brands of Bonn Biscuits
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biscuits.
(d)18 % retailers keeping all above brands of
Bonn biscuits.
PERSONAL OPINION: Retailers prefer 11-15 brands of
biscuits due to retailers stock capability.
3) If NO, what is the reason for non availability of
Bonn biscuits ?
[ ] No regular visit [ ]Problem with distributors
[ ] Replacement Problem [ ] Other
Ans: Out of 100 retailers it is found that 18 retailers
dont have Bonn biscuits. Reason behind it:
(a) 88 % retailers are having no regular visit problem.
(b) 6 % retailers are having problem with distributor.
(c) 3 % retailers are having replacement problem.
(d) 3 % retailers are having other problem.
4) Is Butter Bonn available in the shop ?
[ ] YES [ ] NO
Ans: Out of 100 retailers it is found that 82 retailers are having
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Bonn biscuits then it is found that 76 retailers are having butter bonn So,
(a) 90 % retailers are having butter bonn biscuit.
(b)10 % retailers are not having butter bonn
biscuit.
PERSONAL OPINION: The tangy taste of butter bonn
enveloped in rich butter between baked biscuits.
(5) If NO, Reason for non availability of butter bonn
biscuits ?
[ ] Problem with supply [ ] People dont like it
Ans: Out of 40 retailers who are not having butter bonn. Reason for it:
(a) 80 % retailers are having problem with supply.
(b)20 % retailers says that people dont like it.
(6) What is the source of procurement ?
[ ] Distributor [ ] Wholesaler
[ ] Direct
Ans: In my survey, I covered 82 Bonn Biscuits shops and
in on that Bonn Biscuits, source of procurements are
(a) Through distributor84 %
(b) Through wholesaler14 %
(c) Through direct2 %
PERSONAL OPINION: In most of the areas, the supply
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of distributors are very good thats why 84 % retailers
take the Bonn biscuits from distributors.
(7)Which other biscuits brands are available ?
Ans: (a) 90 % retailers are having Britania biscuits.
(b) 84 % retailers are having Parle-G biscuits.
(c) 69 % retailers are having Anmol biscuits.
(d) 21 % retailers are having Cremica biscuits
(8)What are the average monthly sales of Bonn Biscuits
biscuits ?
[ ] Below 1000 [ ] 1000-3000
[ ] 3000-5000 [ ] Above 5000
Ans:(a) 28 % retailers sale Bonn biscuits down
the amount of Rs. 1000.
(b) 47 % retailers sale Bonn biscuits between
the amount of Rs. 1000-3000.
(c) 20 % retailers sale Bonn Biscuits biscuit between
the amount of Rs. 3000-5000.
(d) 5 % retailers sale Bonn Biscuits biscuit more than
the amount of Rs. 5000.
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MARKET POTENTIAL
Market potential of the Bonn Biscuits is much positive in competitive era and
will sure cover the maximum market share of biscuit product. Potentiality of any
product depends upon the futuristic performance of the product. It depends that
how much potentiality retailers have to be permanent seller of Bonn.
For great potentiality it is necessary to improve those factors which are going to
effect retailers. In my study, I found some factors, which can help to cover great
potentiality.
These factors are following:
Scheme delivery should in perfect determining time.
Some places distributors not able to cover his particular area. That should be
improved.
Scheme facility should be regular as much as possible.
Always collect the views of retailers. It gives psychological effect on the
retailers about care ness by manufacturing company.
These factors are very important for the organization. If company is able to
improve these all factors then definitely its market share will more increase.
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Retailers will take more interest to sell Bonn Biscuits biscuit and customer will
also enjoy for it.
So potentiality is very high of Bonn Biscuits biscuit in positive direction.
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SWOT ANALYSIS
STRENGTHS
Leading FMCG product.
Strong market potential.
High demand of the product.
Big budget and willingness to invest in long term phases.
Glamorous attractive and effective advertising company.
Quality maintenance.
Wide brand variety of the competitor and serve the massage.
Biscuit is becoming a very essential food habit of our people.
WEAKNESS
Focusing on bulk order rather than the small ones.
Schemes and strategies formulated are national and not locally adopted.
Inability to retain target consumers.
In effective team of redistribution stockiest.
Lacking to cater the low-income segment.
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Work marketing policy.
OPPORTUNITY
Further effective utilization of the post distribution network.
Competing companies are not getting due success.
Increase in the target consumers every year.
Increase market share by improving services.
THREATS
Advent of MNCs with their new product.
Lucrative schemes offered by the competitors to the retailers.
Loosing market share due to inefficient work force.
Decline in market reputation due to ineffective and delaying services.
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RETAILERS VIEW AND COMPLAINT
Retailer said that due to irregular supply, he does not keep Bonn Biscuits. He
said that people could easily buy Bonn Biscuits but there is no supply of
product.
He added he intent to promote the product that is good in quality because
people are quality conscious.
Retailer said that he keeps Bonn Biscuits because he earns a good profit margin.
Some retailers ask for the gift like Calendar, Notepad, Diary and Wall clock etc.
with quoting the example of some other companies, which are not in bakery.
Some retailers say that packaging of Bonn Biscuits biscuit is not good.
Most of retailer says that salesman of Bonn biscuits does not pay proper
attention on replacement and regular services.
Some retailer says that distributor of Bonn biscuits do not provide goods on
credit.
Some retailer very much angry from the distribution system of scheme. They
have achieved the target at the end of March but yet did not get the scheme.
Scheme facility should be regular.
Always should be taken views of retailers or consumers.
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RECOMMENDATION
As a nature of the product is as such, it is always in demand and demand should
be fulfilled at that time itself, following points were understood to be taken into
consideration for making system efficient.
To promote the product range good consideration should be made to
wholesalers and retailers.
To maintain the profit margin logistic mix should be adopted by the
company.
Continuous responses should be taken from the wholesalers about retailer's
satisfaction.
Everything should not be left on wholesalers, as time to time sales person
should visit retailers to understand consumer market.
It should be noted whether whole product range is reaching retailers or
not.More retailers and consumer based schemes should be introduced and
special emphasis should be given children based schemes, because children
mainly consume the biscuits.
As a researcher, I observed that for making the distribution channel smooth
transfer of goods, the contribution of middlemen is required. Making all
process convenient always helps in doing so.
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LIMITATIONS
Absence of proper co-operation of some retailer during the research project.
The time causes major hindrances. If the retailer was not willing to respond at
that moment, it was too difficult to meet them again.
Sometimes the right person was not at place, so it was difficult to get my
information about the product.
The respondents might have shown bias or behaved artificially so exact picture
of sales potential could not be derived.
Money factor was also one of the factor faced by us.
Lack of sufficient data on biscuits industry we had to face a
lot of problem about India biscuits industrial profile.
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CONCLUSION
After going thick on the thing, now time is to make a complete picture.
While making a product a SKU (Stock Keeping Unit) of the shop retailers think
about the GMROI (Gross Margin Return On Investment) and they promote the
brand which provide them highest. They expect return in the form of profit
margin, company schemes, window display and references of the shop. Among
these, company schemes make the differences and are the highest source of
motivation after profit margin. Retailing demands a constant push from the
company.
Marketer needs to use advertising and brand building strategies to address
the discerning buyers and retail push to in different buyers. The manufacturer
should understand consumer behavior because retailers can't help quality and price.
It is only up to dealers said it is demand they sell Bonn Biscuits 42% agree that at
retail shop it is brand popularity, which determine the purchase of biscuit.
There is a greater needs to understand the retailer behavior considering them
as a team working for the company may help them to be attached to the company.
There should be feeling of belonging to the company in inner of the retailers.
Setting values club for retailers so that they may exchange views with the company
and help in understanding consumer behavior.
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BIBLIOGRAPHY
BOOKS
Kotler Philip, Marketing Management, Ludhiana,
Prentice Hall Publication of India, 2004, pages referred
from 102 to 105, 183-197.
INTERNET
www.Bonn Biscuits.com
www.google.com
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QUESTIONNAIRE
1. Are Bonn biscuits available in your shop?
[ ] YES [ ] NO
2. If YES, Which brands are available?
3. If No, What is the reason for non-availability of
Bonn Biscuits?
[ ] No regular visit [ ] Replacement Problem
[ ] Problem with Distributor
4. Is Butter Bonn available in the shop?
[ ] YES [ ] NO
5. If No, Reason for non-availability of Butter Bonn?
[ ] Problem with supply [ ] People dont like it
6. What is the Source of procurement?
[ ] Distributor [ ] Whole Saler
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[ ] Direct
7. Which other Biscuits brands are available?
(a) _________________ (b) ___________________
(c) _________________ (d) ___________________
8. Which Brands are mostly selling?
[ ] Bonn Biscuits [ ] ParleG
[ ] Britannia [ ] Other
9. What extra quality our competitors have?
10. What are the average monthly sales of Bonn Biscuits?
[ ] Below 1000 [ ] 1000 to 3000
[ ] 3000 to 5000 [ ] Above 5000
11. Would you like to give any suggestion regarding proper supply?
____________________________________________________________