STUDY OF CUSTOMER AWARENESS & CLIENT GENERATION FOR GODREJ IN TEA/COFFEE

VENDING MACHINE BUSINESS

A study conducted for Godrej & Boyce MFG. LTD.

Under the guidance of

Prof. Atanu Mandal

&

Dr. Radhika Dixit

By-Akshay MunotRoll no. – 29

Div. – A2

Company profile• Godrej & Boyce Mfg. Ltd. is one of the largest privately-

held diversified industrial corporations in India.

• The Company established in 1897 by a young man named Ardeshir Godrej.

• Vision – Godrej is in every home and workplace.

• Mission – Enriching quality of life everyday everywhere.

Sales – • Fiscal Year 2011-12 – Rs. 66 billion (US$1.2 billion)

• Combined Sales of the Company and its major subsidiaries and affiliates for FY 2011-12 – Rs. 184 billion (US$3.3 billion)

OBJECTIVES OF RESEARCH:-

• To study the operations of Godrej with regard to vending machine.

• To know about competitor’s position in vending machine operations.

• To understand the client base of vending machine purchasers.

• To find out countermoves of Godrej vending machine.

• To recommend the measures to improve demand for Godrej vending machine.

RESEARCH METHODOLOGY PRIMARY DATA- The primary data has been collected through questionnaires and interview.SECONDARY DATA- The secondary data has been gathered through various published and unpublished sources such as historical documents, public documents, records of sales, budget, advertisement, etc.RESEARCH DESIGN- Descriptive Method of Research.

SAMPLING:SAMPLING FRAME- Organizations in Viman nagar, Yerwada, Kharadi, Kalayani nagar, Magarpatta, and Band garden.SAMPLING METHOD - Non probabilitic convenience samplingSAMPLE SIZE - 200 Facility Managers of Various organization.SAMPLE UNIT - Facility manager of organization.

THE LINE OF BUSINESS.

Sr No. Various Business No. of firms

1 Logistic & warehouse 2

2 manufacturing & packing 8

3 IT & software 176

4 insurance sector 6

5 sales, marketing & trading 3

6 real estate & construction 47 healthcare 1

1%

4%

88%

3% 2% 2% 1%

No. of firms

Logistic & warehousemanufacturing & pack-ingIT & softwareinsurance sectorsales, marketing & trad-ingreal estate & construc-tionhealthcare

According to the data from the above figure it can be seen that mostly the IT & Software sector has been covered under this survey. What follow is the Manufacturing, Sales, Insurance, Logistics and Warehousing Sector & Real Estate & Constructions Sector. This will be Obvious from the data about the sectors given above.

THE EMPLOYEE STRENGTH.

sr. no employee strength No. of companies

1 less then 40 22

2 40-100 14

3 100-150 102

4 150 & above 62

The employee strength of most of the business concerns covered under this survey was 100-150 (51%). Then follow the Business Concerns who have Employee strength of more than 150, 40-100 & less than 40.

11%

7%

51%

31%

No. of companies

less then 4040-100100-150150 & above

USING VENDING MACHIME/S OR NOT.

It is observed from this data that 16% of the Business Concerns covered under this Survey are not using Vending Machine/s whereas 84% of them are using vending machines for providing the Tea/Coffee facilities to the Employees.

sr. no. Answers No. of companys.

1 Yes 169

2 No 31

85%

16%

No. of companys.

YesNo

ASSOCIATION WITH THE VENDING MACHINE IN CASE OF THE CONCERNS USING THEM.

It is observed from this data that mostly the various Business Concernshad been using their Vending machine/s from 2 years or less than that. Those which had been using their machines for 2 to 4yrs, 4 to 6yrs, 6yrs & above are as above.

Sr. no. No. of years No. of companys.

1 0-2yrs 89

2 2-4yrs 57

3 4-6yrs 19

4 6yrs and above 4

53%

34%

11%

2%

No. of companys.

0-2yrs2-4yrs4-6yrs6yrs and above

TYPES OF VENDING MACHINES USED IN THE BUSINESS.

It is inferred from this data that mostly, in the market, the Premix type of Vending machines were found (Around 85%). What follows is the “Bean to cup” & the “Recipe Based” Vending Machines found in the market.

Sr.no Type of machine No.of companys.

1 PREMIX BASED 143

2 BEAN TO CUP 22

3 RECIPE BASED 4

85%

13%

2%

No.of companys.

PREMIX BASEDBEAN TO CUPRECIPE BASED

TYPES OF PROCUREMENT OF THE VENDING MACHINES

It is observed from the given data that 88% of the Business Concerns use their Vending Machines on Outright Purchase Basis & 12% of them use them on Rental Basis. It is important to note here that most of the Business Concerns Prefer using their Vending Machines on Outright Purchase Basis than on Rental Basis.

Sr. no Type of purchaseNo.of

companys.

1 OUTRIGHT PURCHASE 148

2 RENTAL BASIS 2188%

12%

No.of companys.

OUTRIGHT PURCHASERENTAL BASIS

MARKET SHARE OF THE VARIOUS BRANDS (DATA HOLDS FOR THE TOTAL NUMBER OF VENDING

MACHINES USED)

This data gives an indication that most of the market share of the Vending machines is taken by Nescafe, Lipton, CCD. In terms of Premixes, Nescafe & Lipton are the prime players. Godrej, out the Business Concerns Covered under the survey only has 3% of the market, which is same as fresh & honest, but it seems that it has more recognition in the market as compared to Godrej right now.

Market Share Of Brands

Nescafe 57

Lipton 31

CCD 69

Godrej 5

Fresh n Honest 5

Chai Coffee Service 2

34%

18%

41%

3% 3% 1%

Market Share Of Brands

NescafeLiptonCCDGodrejFresh n HonestChai Coffee Service

NO. OF VENDING MACHINES USED BY THE VARIOUS CONCERNS UNDER THIS SURVEY.

It is found that mostly, in the Business Concerns covered under the Survey, one or two vending machines are used. A detailed information is available above. Still 15% companys are not using vending machine.

Number of Vending Machine

Zero 31

One 107

Two 49

Three and above 13

16%

54%

25%

7%

Number of Vending Machine

ZeroOneTwoThree and above

TYPES OF SERVICE PROVIDERS FOR THE VENDING MACHINES

It is observed that mostly the distributors are the Service Providers in the Market. (53%). Original manufacturer & dealers, 3rd party are follow. See the Percentage data above.

Service Provider

Original Manufacturer 57

distributor 89

Dealer 12

3rd Party Vendor 11

34%

53%

7%7%

Service Provider

Original ManufacturerdistributorDealer3rd Party Vendor

DATA OF CUP PER DAY.

It is observed that the Cuppage per day for 7% of the Business Concerns is Less than 50, again 11% have 50-100 cuppage per day, 24% have cuppage of 101-200 per day, 58% have above 200. Thus, mainly,The cuppage per day for the Business Concerns Covered under the survey is above 169.

Cupage Per Day

Less than 50 12

50 to 100 19

101 to 200 41

Above 200 97

7%

11%

24%57%

Cupage Per Day

Less than 5050 to 100101 to 200Above 200

FREQUENCY OF DRINKS CONSUMPTION PER DAY.

It is observed from the data that mostly (Half a Percentage), the Business Concerns covered under this Survey have frequency of Drinks Consumption as “Twice a day”. (56%). Then follow “Thrice” & “Once”. Only 12% have frequent Drinks Consumption per day.

Frequency Of Consumption

Once 39

Twice 112

Thrice 23

Frequently 24

20%

57%

12%

12%

Frequency Of Consumption

OnceTwiceThriceFrequently

RESPONSIBLE FOR DAILY MAINTENANCE/CLEANING/REFILLING, ETC OF THE VENDING MACHINES.

The above graph shows that in 47% of the cases, the customer did the daily maintenance, cleaning, refilling himself while as in 53%, the Service provider did it.

Daily Maintenance

1) Customer 79

2) Service Provider 90

47%53%

Daily Maintenance

Customer Service Provider

FREQUENCY OF SERVICING FOR THE VENDING MACHINES.

It is inferred from the above data & chart that mostly, the vending machines are getting serviced weekly (565% of the cases) in the different business concerns. Then follows the daily service (28%), monthly (17%). It has been observed during the survey that the frequency of the servicing is one of the important determinants of the service quality offered by a particular brand in the market. So, this is an important factor to consider.

maintainance frequency

Daily 47

Weekly 109

Monthly 12

28%

65%

7%

maintainance frequency

DailyWeeklyMonthly

LIMITATION

• Less awareness among the people about the Godrej vending machine.

• Compared to other competitors the prices are higher.

• The respondents were facility manager of company and mostly they were busy so time taken to interview with them was too much.

SUGGESTIONS TO THE COMPANY• By hiring more no of aggressive sales executive from local area

like pune itself as language culture matters most in sales.

• Cut down monthly rental charges.

• Offer better service & timely delivery of premixes. As in this research work found most of the companies had problem with their current vendor on this issue.

• To improve its sales through channel it can engage market known big dealers rather than small dealers as Godrej’s vending machine products are not known much in the consumer market.

CONCLUSION

• In current market, major market share is under Ccd and NESTLE in terms of premix .

• In terms of fresh milk major player is CAFÉ COFFEE DAY.

• Fresh milk will be much more favored than premixes in the long run of the business.

• Better projected as a time –saving and easy use convenience offering machine.

• IT and ITES section gives the maximum client-revenue generation opportunities.

• To maintain equal business in summer, companies are planning to start cold beverages option in summers.

Thank you