“A STUDY ON UTILISATION OF VISI COOLERS BY

RETAILERS AND TARGET ACHEIVEMENT”

At
MONDELEZ INDIA FOODS PVT LTD

SUMMER INTERNSHIP

Submitted to

RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)

(Affiliated to Mahatma Gandhi University, KOTTAYAM)

In partial fulfillment of the requirements for the award

Of

POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)

(2017-2019)

BY

TIJO THOMAS
REG NO:P1721

RAJAGIRI COLLEGE OF SOCIAL SCIENCES (AUTONOMOUS)

RAJAGIRI VALLEY P.O

COCHIN-682039
 DECLARATION

I, Tijo Thomas hereby declare that this internship report is a record of work carried
out by me at Mondelez India Foods Pvt Ltd during the period from 1st April to 31st
May 2018 under the guidance of Dr.Minimol Mc, Faculty, Rajagiri College of Social
Sciences (Autonomous).

This study was undertaken in partial fulfilment of the requirement of the award of the
Masters in Business Administration in Rajagiri College of Social Sciences
(Autonomous).

I also declare that this report has not been submitted to any other university/board for
the award of any degree/diploma.

Place: Kochi Tijo Thomas

Date:
 ACKNOWLEDGEMENT

The gratification and elation of this project will be incomplete without mentioning all the
people who helped me to make it possible, whose guidance and encouragement were valuable
to me.
First of all, I thank the God Almighty for his immense grace and blessings at each and every
stage of the organizational internship.

I take this opportunity to extend my sincere gratitude to Dr. Binoy Joseph, Principal,
Rajagiri College of Social Sciences (Autonomous), for providing this opportunity of practical
learning experience in the Organization.

I am thankful to my Faculty Guide at Rajagiri College of Social Sciences (Autonomous),

Kochi, Kerala, Dr. Minimol MC, for giving me her valuable guidance to execute the
organization Study as per university requirements.

My sincere thanks to my project guide, Mr Stalin Varghese, Sales officer for giving me an
opportunity to carry out my project study at Mondalez India Foods Pvt Ltd Ltd and for
sparing his valuable time for the same. It was a learning experience to work with him.

I would like to record my deepest sense of gratitude to my friends who encouraged me for
making this Organization Study a success
 EXECUTIVE SUMMARY
Mondelez India Foods Private Limited is a part of the Mondelēz International group of
companies and is in the business of creating delicious moments of joy by producing
delectable chocolate confectionaries, gum and candy products, and popular beverages and
foods that include many of India's most popular and trusted food brands.

Ranked 3rd amongst India’s Most Admired Companies by Fortune India in 2013, , Mondelez
India Foods Private Limited is a part of Mondelēz International (NASDAQ: MDLZ), the
global snacking and food company and a spin-off from Kraft Foods Inc. Mondelēz
International is the world's largest chocolatier, biscuit baker and candy maker, and the
second-largest maker of gum. Mondelez India Foods Private Limited has been in India for
over 6 decades, having started in 1948 as an importer of chocolates. Headquartered in
Mumbai, Mondelez India Foods Private Limited has sales offices in New Delhi, Mumbai,
Kolkata and Chennai and manufacturing facilities at Induri (Pune), Malanpur (Gwalior),
Baddi (Himachal Pradesh) and Sri City.

This study deals about finding the reasons for non achievement of vpo and target
achievement of chocolate products by the retailers. The study was done by evaluating the
customer responses through questionaires and market study seeking their suggestions to
improve the sales. The project helped me on getting a firsthand experience of a sales and
marketing environment. The organization study helped me in understanding more about
FMCG industry and chocolate makers, major competitors of chocolates, customer‘s
expectations, requirements etc.
 SECTION-I
PROFILE STUDY OF THE
ORGANIZATION
 CHAPTER 1

1. INDUSTRY PROFILE

1.1 CHOCOLATE INDUSTRY

The Indian chocolate market in precedent years has been witnessing tremendous
growth in terms of value as well as volume. The governance of market is maintained
by large international giants through franchisee and expansion into new markets
which is leading to the growth of the chocolate industry in India. India is a market of
huge opportunity and it will continue to grow at a healthy rate in the next few years to
come. 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. This provides a huge opportunity to the marketers; because of which many
players are foraying into the industry. The chocolate market has a positive outlook
also due to phenomenal growth in the confectionery industry, rising per capita income
and gifting culture in India.

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. Urban people are becoming more aware and conscious
about chocolate brands and thus dominate the chocolate consumption heavily.
Affluent urban consumers are now even demanding premium chocolates which are
more costly than the regular ones. Manufacturers are keen to tap this section of
consumers and are introducing premium or higher-priced products into the market.
Thus, premium offerings are fast becoming a trend to the urban markets. There are
three types of chocolate namely Milk, White and Dark. Dark chocolate has gained
popularity in recent years because of its health benefits and rising awareness among
customers. Furthermore, preferences of Indian consumers are slowly evolving and
getting accustomed to the taste of dark chocolates. Companies like Mondelez and
Nestlé have successfully introduced their dark chocolate brands such as Bournville
and Nestlé Dark Chocolate.
The range and variety of chocolates available in a retail store has been growing day
by day, which is leading to a lot of impulse sales for chocolate companies. Consumers
can now choose from wide range of chocolates, which initially was limited to milk
chocolates like Cadbury Dairy Milk and Milky Bar. In past few years, the market has
also seen many SKUs with almonds, raisins and all sorts of nuts. Parallel to premium
chocolate brands and the market dominance of mass appeal, the market for handmade
and designer chocolates is also emerging which is catering to the selected pockets of
urban India. As a result, the concept of exclusive chocolate stores in India has gained
ground. Chocolates are moving from just another product on shelf to these exclusive
stores now. Customized services offered by exclusive stores have encouraged the
consumers to gift these luxury chocolates on festive and special occasions.

1.1.1 MARKETING OF CHOCOLATES IN INDIA

Traditionally, chocolates were always targeted at children. But stagnancy in growth

rates made the companies re-think their strategies. Cadbury was the first chocolate
company that took the market by storm by repositioning brands at adults, as opposed
to children.

BUYING BEHAVIOUR

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 wholesaler usually deals in all
kinds of FMCG goods, Foodstuff in addition to the chocolates. The items like
chocolates arc placed near the counter. Chocolates are kept in cardboard boxes and
arc also delivered in the same. In a few of the cases the chocolates were kept
separately (as per equipment provided by the manufacturer - e.g. VLSI Coolers), In
addition to marketing promotions companies have been focusing extensively on the
promotions by the sales staff. Also the companies can devise there marketing
strategies that are catering to specific segments and arc thus more effective.
NATURE OF RETAIL OUTLET

Chocolates arc primarily sold through Kirana Stores, Gift stores, Medical Stores,
canteens, Pan stores, Bakeries, Sweet Shops etc.. The space allocated for the
chocolates was less when compared to the total area of the shop. Of the space
allocated for chocolates, Cadbury brands occupied more than other brands. The
chocolates category thrives on excitement. It's all about giving the consumer a choice
and taste which they enjoy.

STOCKING OF THE PRODUCTS

In most of the cases, various brands of chocolates are kept together. In some of the
cases the chocolates are stocked depending on the manufacturer's provision. The
chocolates arc kept in Glass Jars and boxes These arc provided by the respective
companies along with the product. The chocolates are kept there. But in most of the
cases chocolates are stocked near the counter. Ideally the shopkeeper tries to keep
chocolates within the reachable (sitting on the counter) distance. Chocolates arc kept
at or below the eye level. This is to facilitate visibility of the chocolates for the
customer who is visiting the store.

1.2 PROBLEMS & CHALLENGES IN INDIAN CHOCOLATE

INDUSTRY

TEMPERATURE

A peculiar problem that hinders the distribution to far-off places is the tendency of
chocolates to melt under even moderate heat. The temperatures can reach as high as
48 degrees in summers, whereas chocolate starts melting at body temperature (about
37-38 degrees) .Manufacturers have to take precautionary measures to ensure the
preservation of chocolates especially in summer.
UNAVAILABILITY OF CONTROLLED REFRIGERATIO

India does not have controlled refrigerated distribution. Air-condition supermarkets

are less. Cadbury loses 1.5 percent of annual sales to heat damage. Companies revise
ingredients to make chocolate withstand heat, and so Indian chocolates are more
resilient to heat than European chocolates by a factor of 2 degrees. Ironically, the
chocolate market has grown recently because smaller retailers have stuffed fridges
and coolers supplied by the cola companies Coke and Pepsi with chocolates. Nestle
and Cadbury have provide Visi Coolers to retailers , but to hold down power costs
the shopkeepers switch off the coolers at night. As a result the cocoa fat melts and
migrates to the main body of the chocolate bar. When the cooling is switched on in
the morning, the cocoa fat solidifies and turns white, presenting a bizarre, un-sellable
white on black form. Brands tried to provide fridges with sec-through doors, but was
appalled to see its chocolates sandwiched between dead chicken, butter and
vegetables. Small coolers were provided to retailers to keep the chocolate from
melting, but that didn't quite do the trick. Electricity costs money and is not provided
in a uniform way, so on and off the electricity goes and the product may suffer.

RAW MATERIALS

Cocoa is the key raw material and accounts for around 35% of the total material cost
(including packaging) of chocolates. The price of cocoa has been hitting a new high
of late.

TRANSPORTATION

Chocolate needs to be distributed directly, unlike other FMCG products. 90% of our
products are sold directly to retailers. Building such a direct network in rural areas is a
daunting task since the infrastructure is poor in India in rural areas.

THREAT FROM IMPORTED BRANDS

Free availability of imported brands bought through illegal routes pose a threat to the
domestic chocolate industry. Usually, these imported chocolates taste better than
domestic chocolate due to recipe difference. Hence consumers who are willing to
spend a little more, prefer these imported chocolates. However, the premium brands,
which come through official channels, do not pose a threat to the market, as these
cater to a small niche market. However there is a lot of dumping from neighbouring
countries like Dubai, Nepal, etc of inferior brand of imported chocolates. These arc
not only of low quality, but are brought very near to their expiry dates. Most of the
cheap chocolate brands that are available do not meet Indian Food Regulations.

1.2.1 EXTERNAL FACTORS AFFECTING GROWTH OF CHOCOLATE

INDUSTRY IN INDIA

• Good monsoon ensures adequate availability of raw materials, which arc mainly
agricultural in nature. Raw material prices have significant influence on margins.

• Government policies in terms of licensing, duties, movement of agricultural

commodities etc. also affect the introduction of products, time lag for a product
launches, taxes, excise, etc all influence the business.

• Market growth driven by overall economic growth and urbanization also

contributes. An overall booming economy will consume tonnes of chocolates because
consumer spending increases. Also, the absolute number of consumers in middle class
& upper middle class increases.

• Rupee depreciation improves export realizations; however it also makes import of

raw material (esp. cocoa) expensive.

1.3 CLASSIFICATION OF RETAIL ENVIRONMENT

Types of REs in Traditional Trade are as follows;

High End Grocers: -

Grocers and General Stores which deal in grains, provisions, spices, oil and branded
FMCG products can become 1-IEGs.

The only criteria that an outlet has to fulfil so that it comes under HEG category is,
they have to buy Cadbury products worth Rs. 8000/- average purchase, and space of
300 sq. ft and above and with one helper along with owner and also presence of MFD
with 4 facings of large packs and above. Consumer purchases monthly goods
 Low End Grocers:

Grocers and General Stores which arc not I IEGs and buy Cadbury products less than Rs.
8000/- fall under this category. LEG stores are use for daily requirement and arc typically used
for top - up (emergency purchase).

Food Stores: -

Outlets who earn by selling food products, for example snack stores, sweet marts, ice-
cream shops, bakeries etc. are covered in food stores category. These outlets main
business comes from baked products and not from FMCG groceries such as soaps,
detergents, etc.

Chemists:-

Outlets that are selling ethical allopathic medicines and also stocking FMCG goods like
sachets, western snacks (potato wafers) and sugary confy.

Pan Kiosks:-

Pan Kiosks are outlets selling Pan/Bidi/gutka and also stocking some FMCG products
like chocolates, sachets, potato wafers. etc.

Stand Alone Super Store

These are self service outlets that have at least I computerized checkout counters.
These may be about 3000 sq. ft in size.
1.4 MAJOR PLAYERS IN INDUSTRY

Mondelēz International, Inc. is an American

multinational confectionery, food and beverage conglomerate, employing
around 107,000 people around the world and operating in more than 80
countries.

Founded in 1866, Nestle is a Swiss transnational food and

beverage company & is the largest food company in the world measured by
revenues. Presence across India with 8 manufacturing facilities and 4 branch
offices.
Direct reach to 2 million outlets in India via distributers.

Introduced in 1982, a spherical chocolate sweet introduced by Italian

chocolatier Ferrero SpA.Other products
include Kinder Joy, tic tac, Nutella.In 2004 ,Ferrero India incorporated in
India. The company has its
corporate office in Pune and 4 regional offices at all metros with a nationwide
robust distribution network.

Formed in 1946, it is a brand managed by a cooperative

body, the Gujarat Co-operative Milk Marketing
Federation Ltd. Strong distribution network operating through 56 Sales
Offices and has a dealer network of
 over 10000 dealers & 1 million retailers.Is India's largest food product
marketing organization with annual
turnover (2014-15) US$ 3.4 billion.

Founded in 1911 ,an American global manufacturer of

confectionery pet food, and other food products with
US$33 billion in annual sales(2014). Lately Mars, Incorporated intends to
invest over $160 million in the new
factory at Pune which will produce Mars’ world renowned brands Snickers™
and Galaxy™.

Market Share

9%
18%
nestle
2%
amul
5% ferro rocher
mondelez

66% others

The figure shows the market share of the various competitors mentioned above.

The market leader is Mondelez with a total of 66% .Mondelez continues to hold its
title as the leader.
 CHAPTER 2
ORGANISATION STUDY

2. COMPANY PROFILE

2.1 MONDELEZ INDIA FOODS PVT LTD

Mondelez India Foods Private Limited is a part of the Mondelēz International group of
companies and is in the business of creating delicious moments of joy – by producing
delectable chocolate confectionaries, gum and candy products, and popular beverages and
foods that include many of India's most popular and trusted food brands.

We strongly believe in delighting our customers by offering the best quality products
possible. Over the years we have won our customers' hearts, making us the market leaders in
the chocolates category in India. Our flagship brand Cadbury Dairy Milk (CDM) is
considered the "Gold Standard" for chocolates - the pure taste of CDM defines the chocolate
taste for the Indian consumer.
Our other much loved brands include Cadbury Bournvita, CDM Silk, Cadbury Choclairs,
Gems, 5-Star, Perk, Bournville, Celebrations, Halls, Oreo and Tang. Ranked 3rd amongst
India’s Most Admired Companies by Fortune India in 2013, , Mondelez India Foods Private
Limited is a part of Mondelēz International , the global snacking and food company and a
spin-off from Kraft Foods Inc. Mondelēz International is the world's largest chocolatier,
biscuit baker and candy maker, and the second-largest maker of gum.

2.2 HISTORY

EARLY HISTORY

 1824 - At 22 years of age John Cadbury opens his first grocer’s shop next door to his
father’s drapery and silk business at 93 Bull Street, a fashionable part of Birmingham,
England. John Cadbury sells hops, mustard and a new sideline – cocoa and drinking
 chocolate made with cocoa beans imported from South and Central America and the
West Indies.
 1831 - With growing sales of cocoa and drinking chocolate, Cadbury decides to
produce hem on a larger scale. He rents an old warehouse in Crooked Lane,
Birmingham to use as a factory.
 1842 - Cadbury is now selling 16 kinds of drinking chocolate and 11 kinds of cocoa.
 1847 - Cadbury rents a larger factory in the centre of Birmingham in Bridge Street.
His brother Benjamin Cadbury joins him and the business becomes Cadbury Brothers
of Birmingham.
 1853 - Cadbury Brothers open a sales office in London.
 1854 - Cadbury Brothers receive their first Royal Warrant on 4 February as
“manufacturers of cocoa and chocolate to Queen Victoria.”
 1856 - A more established chocolate company, Fry, proves to be tough competition
for Cadbury Brothers. Business declines and the partnership dissolves. John Cadbury
takes over sole ownership of the struggling firm.
 1861 - John Cadbury is in poor health and hands the reigns of the business to his sons
Richard and George Cadbury. The young men are just 25 and 21 years old
respectively. They struggle to keep the business and work hard at promoting their
goods to the trade. Their dedication, in addition to innovative new products and
quality improvements, help the business survive and prosper.
 1866 - The turning point for the young Cadbury brothers is a new processing
technique and the resulting product: Cadbury Cocoa Essence. The new cocoa press,
purchased from a Dutch manufacturer, squeezes out much of the cocoa butter from
the beans so it is no longer necessary to put starches in the cocoa. The Cadbury
brothers are the first British chocolate manufacturer to use this new process. The
marketing of Cadbury Cocoa Essence as “Absolutely Pure, Therefore Best” helped
sales increase dramatically.
 1879 - Now employing 200 people, Richard and George Cadbury need a bigger
factory. Instead of looking at another city location they chose a greenfield site four
miles from the centre of Birmingham on what would be called Bournville Lane. There
are practical business reasons why this site is appealing: canal and rail links, roads
and water supply. Also, the workers can live in far better conditions than in the
crowded slums of Birmingham. Production begins on this “factory in a garden” in
September.
 1897 - Using left over cocoa butter from its drink powder, Cadbury produces its first
milk chocolate bar for eating. However, the bar is dry and not sweet enough to be
successful.
 1899 - Richard Cadbury dies and the business becomes a private limited company:
Cadbury Brothers Limited. George Cadbury becomes chairman of the new board. By
this time the Bournville factory has more than 2,600 employees.
 1919 - For many years Cadbury has had close links with U.K. chocolate maker J.S.
Fry and Sons Limited. The two companies sign an agreement to create a new holding
company, the British Cocoa and Chocolate Company, which takes over the assets of
both businesses. The company is still referred to by most as “Cadbury.” A new site is
found for Fry’s outside of Bristol at Keynsham. It is named Somerdale.
 1921 - Cadbury becomes an international company when its first overseas factory
opens in Tasmania. Other factories soon follow in Canada, Dublin and South Africa.
 1939 - The second World War begins. During the war, rationing is enforced and raw
materials are in short supply. The company produces Ration Chocolate made with
dried skimmed milk powder.
 1949 - Cadbury opens a factory in India.
 1953 - Wartime rationing comes to an end in the United Kingdom and full supplies of
sugar and full cream milk are again available. During the 1950’s Cadbury expands its
product range, undertakes a lot of promotional work and manages to fend off
competitors by keeping its direct distribution system.
 1955 - Cadbury launches its first television advertising on 22 September with an ad
for drinking chocolate.
 1964 - Cadbury acquires the London-based confections business of James Pascall,
maker of chocolate éclairs.
 1967 - The holding company British Cocoa and Chocolate Company changes its name
to Cadbury Group Ltd.
 1969 - Cadbury Group Ltd. merges with Schweppes Ltd. to create Cadbury
Schweppes plc.
 1970s - The Cadbury chocolate business experiences a decade of unprecedented sales
growth, partially due to hugely successful and memorable television advertising
campaigns.
 1980 - Dominic Cadbury becomes managing director of the UK Confectionery
Division and institutes the biggest revolution of Cadbury’s UK factories since the
 rebuilding of Bournville in the 1920s. The number of production lines decreases from
78 to 33 in a £110 million investment which replaces aging equipment with state-of-
the-art production technology.
 1988 - Cadbury Schweppes acquires Chocolat Poulain, maker of the number 3
chocolate brand in France at that time. This is the first major acquisition in Cadbury’s
new strategy of growth through acquisition.
 1989 - Cadbury Schweppes acquires both Trebor Group Ltd – maker of Trebor and
Maynards sugar confections – and Bassett Foods plc – the maker of Bassetts licorice.
 1990 - Trebor and Bassett merge to form Trebor Bassett Ltd.
 1995 - Cadbury Schweppes acquires Allan Candy, including the Sour Patch trademark
in Canada.
 1997 - Cadbury Schweppes acquires Jaret International, including the Sour Patch
trademark, in the U.S.
 2000 - Cadbury Schweppes acquires Hollywood, a leading French chewing gum
brand.
 2002 - Cadbury Schweppes acquires Dandy A.S. of Denmark, including Stimorol,
Dirol and V6 gum brands.
 2003 - Cadbury becomes the world’s number one confectionery company ( and
number 2 in chewing gum) with the acquisition in March of U.S.-based Adams
chewing gum business. This includes Halls, Dentyne, Trident brands and the Bubbas
bubble gum range.
 2005 - Cadbury Schweppes acquires U.K. premium organic chocolate brand Green &
Black’s.
 2008 - Cadbury and Schweppes de-merge effective 7 May, separating the confections
and beverages businesses into two companies. The confections business is called
Cadbury plc.
 2010 - On February 2, Cadbury plc is acquired by U.S. based Kraft Foods Inc. in a
£11.5 billion deal.

2.2.1 Latest from Mondelez International

Mondelēz International, Inc now employing around 107,000 people around the world and
operating in more than 80 countries. It comprises the global snack and food brands of the
former Kraft Foods.
o The Mondelēz name, adopted in 2012, came from the input of Kraft Foods employees
at the time, Monde being French for world and delez an alternative to delicious.
o The company is headquartered in Deerfield, Illinois, a Chicago suburb, and is a
manufacturer of chocolate, biscuits, gum, confectionery, coffee, and powdered
beverages.
o Mondelēz International's includes several billion-dollar brands such as Cadbury and
Milka chocolate, Jacobs coffee, Toblerone, Nabisco and Oreo cookies, LU, Tang
powdered beverages, and Trident gums.
o According to research by consulting firm Value Notes, Mondelez is working on
tapping about 80% of all the nine states it is present in, reaching villages with a
population of between 5,000 and 10,000. This should be completed within the next
couple of years.
o Mondelez dominates the chocolate market in India with a 55.5% share in value terms
in 2014, according to a report by market research firm Euromonitor International.
Nestle India is the second largest chocolate company, with a 17% market share by
value. The chocolate market in India was worth Rs.10,000 crore in 2014, according to
the study.

o Mondelez India will now focus on reaching rural retail outlets across the nine top
states where it has a presence to tap under- penetrated markets, and will push
premium chocolates in metros and other top cities to boost value growth, said
Prashant Peres, director (marketing - chocolates).
o Mondelez India, formerly known as Cadbury India Ltd, is seeking to boost growth,
which has fallen to single digits despite price hikes as Indians consumed fewer
chocolates in the first half of 2015. Chocolate consumption declined 2% in terms of
volume in the first half of 2015, according to industry analysts.

o With value-driven metro markets already in its grip, chocolate maker Mondelez India
Foods Pvt. Ltd is looking at expanding its rural reach to boost sales volumes. The
chocolate industry in India, valued at INR 58bn in FY 2014, has been growing at a
CAGR of 15% over the last three years. ValueNotes estimates that the industry will
be worth nearly INR 122bn by FY 2019, growing at a CAGR of 16%. •
2.3 OPERATIONS IN INDIA

o Cadbury India began its operations in India in 1948 by importing chocolates.

o It now has manufacturing facilities in Thane,Induri and Malanpur (Gwalior),

Hyderabad, Bangalore and Baddi (Himachal Pradesh) and sales offices in New
Delhi, Mumbai, Kolkata and Chennai.

o The corporate head office is in Mumbai. The head office is presently situated
at Pedder Road, Mumbai, under the name of "Cadbury House".

o This monumental structure at Pedder Road has been a landmark for the
citizens of Mumbai since its creation. Since 1965 Cadbury has also pioneered
the development of cocoa cultivation in India.

o For over two decades, Cadbury has worked with the Kerala Agricultural
University to undertake cocoa research.

o Cadbury was incorporated in India on 19 July 1948. Currently, Cadbury India

operates in five categories – Chocolate confectionery, Beverages, Biscuits,
Gum and Candy. Some of the key brands are Cadbury Dairy Milk, Bournvita,
5 Star, Perk, Bournville, Celebrations, Gems, Halls, Éclairs, Bubbaloo, Tang
and Oreo. Its products include Cadbury Dairy Milk, Dairy Milk Silk,
Bournville, 5-Star, Temptations, Perk, Gems ,Eclairs, Bournvita, Celebrations,
Bilkul Cadbury Dairy Milk Shots, Toblerone, Halls, Tang and Oreo.
o Since 2012 more than 200,000 visicoolers (low-cost refrigeration systems)
deployed across the country. From mid-2016 through March 2017, added
visicoolers to nearly 30,000 villages and 100,000 urban outlets. Invested more
than $190 million in company's largest multi-category production facility in
Asia Pacific at Sri City in Andhra Pradesh, which was inaugurated in April
2016 Invested $15 million in global Research & Development hub, scheduled
to open in 2018
o Community Involvement a National community program, Shubh Aarambh
(New Beginnings), has been active for more than two years and continues to
focus on nutrition education, active play and kitchen gardens. The program
has touched lives of about 100,000 people across seven states in India. a
Cocoa Life sustainability program has impacted about 100,000 cocoa farmers
 to date across four states in south India -- Tamil Nadu, Kerala, Karnataka and
Andhra Pradesh — helping farmers understand and subsequently adopt
sustainable cocoa farming.

2.4 VISION, MISSION AND GOALS

Vision Statement

To build the best snacking company in the world.

Mission
Our purpose 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

Purpose

is to create more moments of joy by building the best company in the world.

Goals:

 Grow Our People. By building world-class capabilities and providing

meaningful career experiences, we create a great place to work.
 Growing Our Business. We’re focused on achieving best-in-class cost
management, innovating with speed and growing the profitability and sales of our
iconic Brand Family
 Growing Our Impact. We’re committed to enhancing the well-being of the
people who make and enjoy our products, the communities we serve and the
planet as a whole
Individual products:
1)Cadbury Dairy Milk:
is and always remain flagship brand. The punch by the company for advertising this
product life. ‘Real taste of Life’, itself defines the positioning of the product. The chocolate is
meant for all age groups. It symbolizes fun, enjoyment, good items. It has goodness of milk,
taste and appetite appeal.
2) 5 star:
although positioned internationally as an energy bar, 5 star was positioned on an
emotional platform in India during the late 1980s. Symbolizing togetherness, 5 star was
originally targeted at teenagers. In June 1994, the company reworked the strategy for 5 star to
make it a source of energy. In fact, before the launch of Perk, 5 star’s energy bar positioning
made it a snacking chocolate.
3) Éclairs:
competing in the chewable toffees segment. Éclairs was re-launched during the mid-
nineties with a new name, Dairy Milk Éclairs.
4) Gems:
broadcasting Gems, though, didn’t prove to be feasible proposition for Cadbury.
Targeted at children under 12 years with ‘Gems Bond’ advertising. Cadbury decided to sell it
to teenagers with the ‘Smart Very Smart’ campaign. But now, the company is retargeting
children with its animated commercial. “Gems are the best brand to speak to children.
Colourful chocolate buttons appeal most to children and that is why Cadbury is re-targeting
children.”
5) Crackle:
it was the first Cadbury’s chocolate to have crunch in it. It was targeted as a funky
chocolate to add spark to life.
6) Perk:
in September, 1995, Cadbury pre-empted the launch of Nestlé’s Kit-Kat by rushing a
new brand, Perk into the market. Positioned much further on the functional scale of 5 star,
Perk was meant to be light snack-product for subduing the first pangs of hunger.
7) Bournvita:
positioned as tasty health drink. While its competitors concentrated only on health aspect,
Bournvita combined the nutritious value
with taste.
 2.5 ORGANIZATIONAL STRUCTURE

BRANCH MANAGER

BRANCH SALES BRANCH SALES BRANCH SALES BRANCH SALES

MANAGER MANAGER MANAGER MANAGER

AREA SALES AREA SALES AREA SALES AREA SALES

MANAGER MANAGER MANAGER MANAGER

SENIOR SENIOR SENIOR SENIOR

SALES SALES SALES SALES
EXECUTIVE MANAGER MANAGER MANAGER

SALES OFFICER SALES OFFICER SALES OFFICER SALES OFFICER

SALES MEN

2.6 CORPORATE OFFICE AND HEADQUARTERS

2.6.1 OFFICES

Cadbury started its operation on india at 1948 by importing products. Cadbury was
incorporated in india on 19 july 1948. Cadbury india is headquarted at peddar road in
Mumbai under the name Cadbury house. Later in 2013 mondelez inc. acquired cadbury’s
india and in 2015 corporate headquarters was changed Thane.The operations of Mondelez
india are based on four major metros of india. Sales offices are situated in four metros with
all functional departments. Mondelez also have 4 manufacturing plants across the country
and a well supported supply chain distribution system too.

HEAD QUARTERS SALES OFFICES MANUFACTURING

PLANTS
MUMBAI MUMBAI INDURI
(MAHARASHTRA)
NEW DELHI MALANPUR (MADHYA
PRADESH)
CHENNAI BADDI (HIMANCHAL
PRADESH)
KOLKATA SRI CITY (ANDHRA
PRADESH)

Among the manufacturing plants, Sri city plant situated at Andhra Pradesh is the largest in
size and capacity.

The state wise operations of the company is carried out by AREA SALES OFFICERS and
supported by SALES OFFICERS in regional basis with the help of tertiary sales officers,
distributors and sales men.

One of the major uniqueness of mondelez operations is that regional sales officers and
supporting staff did not have a established office to work. They work in different distribution
points of distributors situated across their sales area. As it is a pure market based sales job the
concept of established offices is not applied in mondelez.

2.6.2 FUNCTIONAL DEPARTMENTS

The following departments help in managing the sub units and thereby the efficient
functioning of the organization.

3.2.1 SUPPORTING DIVISIONS

 Finance and accounts

 Human resource and administration
 Legal and secretarial
 Operations and materials
 IT and systems
 Marketing and customer care

 Finance department:
The finance department is in charge of managing the financial aspects of the
firm. The primary duty is to create wealth so that the company get returns for
their investment. The finance wing analyses and sanctions the individual
budget for different functioning departments. They manages shop billing
accounts, business transaction records, statements to be submitted to banks
and insurers etc..preparation and maintenance of costing records and preparing
financial statements are one of the major duties. Finance department functions
on regional basis. Eg; the finance department for south india will deployed at
Chennai sales office.

 Marketing department
The marketing department manages promotional activities for products. They
coordinate the sales activities of various divisions. They promote their services
through mass media marketing, internet based marketing and through different
offers. Marketing department in mondelez employs merchandisers , who
directly visits the stores and speak with shop owners and place different
promotional tools like standees, stickers, offer cards etc.. Merchandisers
reports to sales officers. Marketing department is responsible for ensuring that
monthly and quarterly sales are achieved by different areas on timely basis.
The department also coordinates the negotiations with business partners on
potential business opportunities.

 Operations and materials department

This department deals with the procurement of raw materials for chocolate
production and goods for functioning of all other departments. They are also
responsible for maintaining appropriate stock management procedure and
practice. They are responsible for issuing tenders and evaluation of tenders for
goods supply, maintenance of records related to stock keeping and delivery of
goods. Operations of manufacturing plants also comes under this department.
 There are PLANT MANAGERS and asst.plant managers for the plant
operations. These managers are responsible for the product quality, proper
packaging and supply of goods. Supply chain of the company is also handled
by operations and materials department. Coolers are installed and serviced by
materials department.

 IT & systems department

Systems department is in charge of the IT related services of the organization.
They supply different IT equipments like computers, palm tops and tablets for
retail billing as per the requirement to different regional areas. They are also
responsible for maintaining internal communication software” MERA NET”.
They also consolidate daily sales report and revenue reports in collaboration
with finance and marketing departments. Apart from these functions the
systems department deals with networking and trouble shooting.

 Legal and secretarial department

The legal and secretarial department takes care of the legal aspects of the firm.
Trade Union activities are strong in manufacturing plants and warehouse
depots. One of the major duties of legal department is to liaison with labour
unions. Along with that they ensure compliance with the norms of the
company law. One of the major legal problem faced by mondelez is violation
of agreement by shop owners on installation of coolers in shops. The coolers
placed by mondelez is a property of the company and company have all rights
to return it back at any time. Violation on these terms and conditions
frequently leads to legal actions against shop owners and it is one of the major
head ache of legal department.

 Human Resource department

The HRD deals with recruitment, staffing and training of the employees. It
also does several coaching programs for improving employee output and
performance. Performance appraisals review and processing and processing
pay roll of the employees are also done by HRD. Daily attendance sheet is
collected from area sales officers and verifies the list from area sales managers
is done by HRD. Different disputes on PF, Final settlement and other
 employee related legal problems are carried by HRD with the help of legal
department. HRD also have managerial structure same as financial department
have.

2.7 HR POLICIES
 Working days: Monday – Saturday
 Working hours: 10 am – 5 am (office staff)
(marketing employees work according to the market need and demand)

 Holidays:
 Sunday is a weekly holiday for mondelez staff
 Every employee is entitled to enjoy 12 paid leaves in a
Year
 Every employee also allowed taking 15 privilege annual
leaves in a calendar year that should be taken in continuous
15 days
 3 months of maternity leave
 15 days of paternity leave
 Unlimited medical leave on medical certificate and
approval from sales officer

2.7.1 Methods of availing leave

Paid leave:

 Shall be applied before 24 hours of proceeding on leave

 In emergency employees shall intimate the same within 24 hours

Medical leave:

 Shall be sanctioned for a day or more at a time

 For a long medical leave , the employee should produce a medical certificate from
certified medical professional along with certificate from sales officer or other
reporting managers
Privilege leave:

 Application for PL shall be made to the sanctioning authority before 7days.

 Maximum 15 continuous days are allowed to avail during the subsequent year
 The total number of PL carried forward to a succeeding year shall not exceed 60 days
 CHAPTER 3
3.1 ORGANISATIONAL POLICIES

3.1.1 CSR ACTIVITIES

At Mondelez International, good values and good business go hand in hand. Keeping the
child's need at the center of its activity, Mondelez India works with parents, educators and
community health workers to provide health and nutrition support, education, physical and
social development. This approach is in line with its global vision to promote healthy
lifestyles and its well-being agenda. In India, the company has customised the 'Shubh
Aarambh' programme to address nutrition as part of the child's holistic development; physical
education through sports session; creating and rebuilding playgrounds that helps children to
become physically more active and attentive in school; and healthy life by encouraging
kitchen gardens. By promoting active and healthy lifestyles for children and youth, it believes
that it can provide a long term and sustainable answer to issues of health, nutrition, education,
gender inequality and to achieve larger social goals.

The 'Shubh Aarambh' programme also focuses on the environment and water conservation
initiatives in key areas around the company's manufacturing facilities in Madhya Pradesh,
Himachal Pradesh, Andhra Pradesh and Maharashtra. The project is an effort towards
sustainable development of villages through integrated approach for environmental
management by undertaking pilot activities for water conservation and tree plantation. The
programme also provides safe drinking water including building pipelines, Reverse Osmosis
plants and hand pumps. Besides, over 8000 trees have been planted in homes, schools,
panchayats, anganwadis and forest lands and public gardens and ponds have been upgraded.
Community participation is integrated to steer the process.

Mondelez India is also focusing its efforts on providing medical support to the communities,
a case in point is a small medical centre at Induri set up in partnership with a local hospital.
This centre focuses on giving basic treatment to the local villagers. The centre is gaining a lot
of popularity with close to 19,000 patients being attended to over the last couple of years.

The youth livelihood development programme was launched to enhance employability

opportunities for the youth around three key manufacturing plants. The programme supported
about 1400 disadvantaged youth from Maharashtra (Induri), Himachal Pradesh (Baddi) and
Madhya Pradesh (Malanpur) for training, counselling, mentorship, active citizenship and
leadership in action - encouraging youth to progress into employment, higher education or
job based training and become active citizens and become employable. In fact, more than 50
youth enrolled in the programme subsequently started their own small businesses, thereby
enhancing their livelihood. This programme was started with an aim to reduce dropouts after
middle school and help the youth become more employable. Thus, Mondelez India is creating
entrepreneurs.

As an environmentally responsible company, Mondelez India has reduced the environment

impact by decreasing its carbon, water and waste footprint by building greater efficiencies,
adopting cleaner energy and technological interventions and undertaking environment
greening projects around the company's manufacturing operations -which are all zero-water
discharge and zero waste to landfill. The aim is to create a sustainable environment

3.2 ENVIRONMENT POLICY

It is also an integral part of achieving our objective to grow shareowner value over the long
term. When the long term is taken into account what is good for the environment is also good
for consumers and good for business.They will-

o Conduct their business in compliances with environmental laws and with their
guidelines, which set global standards for our operation.

o Maintain systems to manage our environmental responsibilities.

o Set clear target for continuous improvement and monitor these targets to ensure that
they are met.

o Establish and enable employee accountability for their environmental performance.

o Strive to prevent pollution and to minimize the environmental costs and impacts of
their global operations.
o Assess the impact of new operations and products and seek ways to contribute
positively to their environmental performance.

o Train and motivate their employee to understand their environmental responsibilities

and to actively support their environmental programmes.

o Work with their supply chain and business partners to improve their collective
environmental performance, to protect the ecosystem that provide raw materials and
minimize the impacts from transportation.

o Communicate openly with their shareowners, employees, customers and other

interested parties by regularly on our commitments and our progress towards meeting
them.

o Review and update this policy regularly

3.3 QUALITY POLICY

BUSINESS VISION:-
We will continue to maintain our leadership position in the
Indianconfectionary market as well as achieve a strong national presence in the food
drink section.

QUALITY VISION:-

 We will provide products of international quality at competitive pricesthat

offer superior value for money.
 We will build standard and systems for every facet of our business thataffects
the quality of our products assure consistency.
 We will strive to maintain highest standards of hygiene and quality in
our operation and dedicate ourselves to continuous improvement in the same.
 We will encourage involvement of our endeavors.
3.4 ORGANISATION ANALYSIS

3.4.1 FINANCIAL ANALYSIS

Business Turnover and Profit/Loss Details:

2017 (in 2016 (in

As of 31 March (Rs.) million) million)

TOTAL INCOME 54000.30 65077.20

TOTAL EXPENSE 49460.50 59742.0

NET PROFIT/LOSS 4617.60 5884.60

Table 3.1: Banks Turnover and Profit/Loss

From the above table we can see that the performance of the company has been
declined as they were able to gain less profit compared to previous year.

Dividend

The board of directors has not recommended for any dividend in the year 2016 &
2015.

3.4.2 Activity Ratios:

a) Total Asset Turnover Ratio:

Asset turnover ratio measures the value of a company's sales or revenues generated
relative to the value of its assets. The Asset Turnover ratio can often be used as an
indicator of the efficiency with which a company is deploying its assets in generating
revenue.
Total asset Turnover ratio = Total Revenue/Total Assets

Total Asset
Revenue Total Asset turnover
Year (in million) (in million) Ratio

2017 60169.912 49319.60 1.22

2016 84964.208 46176.20 1.84

Table 3.2 Asset Turnover

b) Equity Turnover Ratio:

Equity turnover is a ratio that measures the proportion of a company's sales to its
stockholders' equity. The intent of the measurement is to determine the efficiency
with which management is using equity to generate revenue.

Equity Turnover Ratio = Total Revenue/Shareholder’s Equity

Equity
Revenue Equity turnover
Year (in million) (in million) Ratio

2017 60169.912 497270.20 1.21

2016 84964.208 63405.97 1.34

Table 3.3 Equity Turnover

Profitability Ratios:

Profitability ratios are a class of financial metrics that are used to assess a business's
ability to generate earnings compared to its expenses and other relevant costs incurred
during a specific period of time. For most of these ratios, having a higher value
relative to a competitor's ratio or relative to the same ratio from a previous period
indicates that the company is doing well.

a) Operating Profit Margin Ratio:

The operating profit margin ratio indicates how much profit a company makes after
paying for variable costs of production such as wages, raw materials, etc. It is also
expressed as a percentage of sales and then shows the efficiency of a company
controlling the costs and expenses associated with business operations.

Calculated as, Operating Profit Margin = Operating Income/Revenue

Operating
Profit
Revenue EBIT Margin
Year (in million) (in million) Ratio (%)

2017 60169.912 12155.53 4.95

2016 84964.208 19007.60 4.47

Table 3.4 Operating Profit Margin

 b) Net Profit Margin Ratio:

Net profit margin is the ratio of net profits to revenues for a company or business
segment. Typically expressed as a percentage, net profit margins show how much of
each dollar collected by a company as revenue translates into profit. A higher profit
margin indicates a more profitable company that has better control over its costs
compared to its competitors.

Calculated as, Net Profit Margin = Net Income/Revenue

Net Income Revenue Net Profit

Year (in million) (in million) Margin (%)

2017 126356.81 60169.912 2.10

2016 335608.612 84964.208 3.95

Table 3.5 Net Profit Margin

3.4.3 Earnings per Share (EPS)

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding
share of common stock. Earnings per share serves as an indicator of a company's
profitability. It can be calculated as:

EPS = (Net Income – Preferred dividends)/ Weighted average number of outstanding equity
shares
 Weighted
Average
Equity Of
Net Profit Shares
Year (in million) (in million) EPS

11.0
2017 4617.60 5920 0

31.0
2016 5884.60 6372 0

3.4.4 Return on Investment (ROI)

Return on investment (ROI) measures the gain or loss generated on an investment
relative to the amount of money invested. ROI is usually expressed as a percentage
and is typically used for personal financial decisions, to compare a company's
profitability or to compare the efficiency of different investments. The return on
investment formula is:
ROI = (Net Profit / Cost of Investment) x 100

Net Profit Invested

Year (Rs) Capital ROI (%)

2016 4617.60 632547.4 0.73

2015 5884.60 232592.88 2.53

3.5 SWOT ANALYSIS

Strength
1. Very strong brand equity in India.
2. Due to its 54 years presence in India – has deep penetration – 2100 distributors;
450,000 retailers, 60 mid urban (22%) customers.
3. Three sectors; Chocs (70% share), Confec (4%), food drinks (14% - leader in
brown segment).
4. Low cost of production due to economic of scale. That means higher profits. Better
market penetration.
5. Second best manufacturing location throughout Cadbury Schweppes.
6.They have debt in their capital structure , which means they are more financially
leveraged.

Weakness
1. Poor technology in India compared to current international technologies (Godiva,
Mozart, Fazer, Dint, Naushans, etc...)
2. Ltd. Key products, only one central brand (CDM). Pralines range totally wising in
India.
3. “Make in India” tag once the economy opens up wore and imports rush in.

Opportunities
1. Tremendous scope for per capita consumption (160 gms of 8 – 10 kg)
2. Increasing per capita national income resulting in higher disposable income.
3. Growing middle class and growing urban population.
4. Increasing gifts cultures.
5. Substitute to “Mithais” with higher calories/cholesterol.
6. Increasing departmental stores concept – impulse @ at cash counters.
7. Globalization: optimal use of global Cadbury Schweppes.
Threats
a) Major :-
Due to low cost and highest brand equity, it is success in India.
b) Minor :-
Globalization will bring in better brands for upper end of the market (Liest, Monarch,
Godiva, etc…).

PRODUCTS
The average company will compete for customer by conforming to his
expectation consistently. But the winner will surpass them by constantly exceeding
his expectation, delivering to his door step additional benefits which he would never
have imagined . Cadbury’s offer such product. The wide variety products offered by
the company include:
I. Chocolate & Confectionary
1) Dairy Milk
2) Fruit & Nut
3) 5 Star
4) Break
5) Perk
6) Gems
7) Eclairs
8) Nutties
9) Temptation
10) Milk Treat
II. Beverages

III. Food Drinks

1) Bourn vita
2) Drinking chocolate
3) Cocoa

2 Pricing
 Make no mistake. Second P of marketing is not another name for blindly
lowering prices and relying on this strategy alone to increase sales dramatically. The
strategy used by Cadbury’s is for matching the value that customer pays to buy the
product with the expectation they have about what the production is worth to them.
Cadbury’s has launched various products which cater to all customer segments. So
every customer segment has different price expectation from the product. Therefore
maximizing the returns involves identifying right price level for each segment, and
then progressively moving through them.
Dairy Milk Rs. 15
Perk Rs. 10
5 Star Rs. 10
Friut and Nut Rs. 22
Gems Rs. 10
Break Rs. 5
Nutties Rs. 18
Bournvita (500 gm) Rs. 104
Drinking chocolate Rs. 50
 SECTION - II
PROBLEM CENTERED STUDY OF THE
ORGANIZATION
 CHAPTER 1
PROBLEM FORMULATION

1.1 INTRODUCTION

Cadbury Diary Mik Silk is the premium chocolate produced and marketed by Mondelez
International. It’s a premium chocolate so that it gets melt when kept on places with higher
temperature. Visi cooler are those coolers which are provided to the retailer of Mondelez
International, free of cost in order to prevent melting of its premium chocolate, Cadbury
Diary Milk Silk. This study is regarding the visi coolers given by mondelez to its retailers.and
the target achievement of retailers which are having visi coolers

1.2 PROBLEM RELATED TO THE STUDY

The problem related to the study is the Utilisation of VISI coolers by Retailers And Target
Achievement

1.3 BACKGROUND OF THE STUDY

Mondelez India Ltd. Which is the parent company of Cadbury’s is the market leader in
chocolate and confectionary industry in India. Mondelez is the third largest FMCG Company
in India in terms of value growth. It is growing at a rate of 15% according to latest reports.
With diary milk brand gaining popularity in each and every household of India the market
share of the company is also growing day by day.

Mondelez India is providing coolers of different volumes say

16 ltr, 33 ltr, 48 ltr, and 350 ltr. The cost of a 16 ltr cooler is Rs 10,000 and the installation
and maintenance cost will be additional. According to increase in volume the investment of
the company on coolers also increases. Company is installing and maintaining coolers at a
free of cost to the shops. Shops do not have any investment on these coolers. At the time of
deploying the coolers, the shopkeepers has been given a particular target purchase of
chocolate for each month for each type of coolers company have put a target , But it has been
found out that a large portion of the retailers are not achieving the VISI targets which thw
company given to them The company has invested in these cooler in with an expectation of
certain level of purchase by the retailer that they should have purchased atleast the given
amount of chocolate the target is applicable only for chocolate Thus the problem here is the
shortage in the purchase made by the retailer. According to the company, the retailer must
atleast purchase the minimum target given to him, so that the company could get a part of its
investment in the cooler back.and also to encourage the sale of cholcolates.This study aims at
finding out the impacts of placing coolers in shops to the company. The impacts will be in
terms of profit, loss, usage, target achievement, customer satisfaction and investment. The
study will be done by preparing questionnaires and communicating it with distributors, sales
men, shop owners and company officials

Visi Coolers

Visi Coolers are visual cooler (small fridge) that are used to cool the products so as to
preserve their taste & shape .These Visi Coolers form a part of the End to End Cold
Chain at Cadbury .These are invested by the company and are given free of cost to the
retailer.

VPO

VPO is value per outlet. A target is set in terms of the monthly purchase of chocolates
from the wholesaler for every Visi Outlet .This target is preset by the company and is
dependent on the size of cooler provided. The types of cooler and their VPO targets are
listed below-

TYPE OF TARGET
COOLER VPO in
Rs
16L 1000
33L 2000

60L 5000
200/300L 8000
PURITY

Only products of Mondelez international are to be kept in the Visi Cooler provided to
the retailers .The coolers should have no other products other than that of Mondelez
International and should be arranged according to the Planogram . Purity ensures store
aesthetics and sales generation.

Beat

This is the route that a salesman follows on a particular day.

RD point

Re-Distributor point

RE

The Retail Environment

Merchandiser

The team of people who help in setting up display and Visi coolers.

PC

Sales men team in Cadbury is called as Purple Champions.

TYPE OF OUTLETS

The types of shops in a retail environment are listed as-

CHE - chemist
FS - food store
HEG- High End
Grocer
LEG - Low End
Grocer
PAN- Pan Shops
 SAS - Stand Alone
Superstore
WS - Whole Sale

1.4 ELABORATION OF THE PROBLEM

The project is entitled with the utilization of visi coolers.and the problem take for the study is
utilisation of visi collers by the retailers and their target achievement and what are the
challenges for target achievement

1.5 RELEVANCE OF THE STUDY

 This is analyzed to study the competitive advantage of the company in terms with its
competitors by placing coolers in shops free of cost
 To check increase in the sales of chocolates by placing coolers
 Encourage the retailers to buy more thereby meeting their target then getting back the
cooler investment made by the company
 To analyze whether by placing coolers, customers are getting quality products
 CHAPTER 2
RESEARCH PROCESS

2.1OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES

 Utilisation of visi coolers and target achievement

SECONDARY OBJECTIVES

 To find out the sales made by the shops in a month

 To study the reasons behind non achievement of vpo

 To find out the status of visi cooler wheather its missing or not

 To know wheather the visi cooler help the shopkeeper in improving their sales

2.2 SCOPE OF THE STUDY

This study covers the impacts of installing coolers in different shops by mondelez ltd. It is
done free of cost to shop owners. It is done to increase the sales by setting specific targets and
to deliver quality products. But now a days company has recorded violation of agreement by
shops. So this study will help company to spot out the impacts of installing coolers in shops
including their profitability

2.3 RESEARCH METHODOLOGY

Research methodology describes the research procedure which has been used in the research.
It is a way to systematically solve research problem. Research methodology section deals
with the data collection
2.4 RESEARCH DESIGN

The research design used in this study is descriptive. It includes survey and fact finding
enquires of different kinds. The major purpose of descriptive research is description of the
state of affairs as it exists at present. The main characteristics of this method are the
researcher has no control over the variables he can only report what happened or what
happening. Here the researcher tried to identify various facts relating to installation of coolers
by mondelez Ltd. It describes the segment characteristics, making specific predictions using
longitudinal study, panels and sample survey

Exploratory study helps in formulating problems more precisely, establishing

priorities for research, estimating impractical ideas and concept clarification using literature
research, experience survey, analysis of select cases, interviews, focus group opinions etc.

2.5 RESEARCH APPROACH

Research approach is survey method conducted by meeting each and every respondent and
collected data from them using a well structured questionnaire and also by interviewing
company employees.

2.6 RESEARCH INSTRUMENT

Research instrument used in this project is structured questionnaire.

2.7 TOOLS FOR DATA COLLECTION

The main tools that were used were survey questionnaires and customer suggestions,sales
man suggestions
2.8 SAMPLING AND SAMPLE SIZE

A sample of 92 shops was collected from different locations of kottayam and pala under the
distributors beejay agencies and Thomas joseph and company. The samples were allotted by
the company on the commencement of the project.

2.7 DATA ANALYSIS

2.7.1 CATEGORY OF SAMPLES

 Samples consist of 92 shop owners

 Two distributors
 Two salesmen
 Two company employees
 Overall 98 samples are collected for the study

YEARS OF ASSOCIATION WITH THE COMPANY

 According to the study about 40-50 shop owners are associated with the
company on or above 10 years and rest is below 10 years
 Salesmen are associated with company around 1.5 years
 Distributors are associated more than 5 years
 Among company employees one is associated around 2 years and other
around 17 years

2.8 LIMITATIONS OF THE STUDY

 The reliability of data used in the study depends upon information given by the
respondants.
 A few respondents did not express their right attitude on certain questions.
 The sample selected for the study is small from kotayam area only, therefore the
result cannot be applied universally.
 CHAPTER 3

PRESENTATION AND ANALYSIS OF DATA

3.1 ANALYSIS AND INTERPRETATIONS

The statistical data become organized, condensed, and intelligible through classification and
tabulation. It enables the analysis and interpretation. Analysis is the process or planning the date
in an ordered form in such a way to combine them with the subjection of the study. Interpretation
is the outcome of the analysis in form of suggestions.

3.1.1 Tabulation
Tabulation means a systematic presentation of numerical data in columns and rows in accordance
with some salient features or characteristics
The important Statistical tools used in this study are:
1. Percentage analysis

2. Bar diagram

3. Pie diagram

3.1.2 Percentage analysis

Percentage analysis is used to find out the percentage of respondents from the total number of
respondents, responded to each question.
Number of observation
Percentage = --------------------------------x 100
Total no. of observation
3.1.3 Diagrams
Diagrams are the pictorial representation of collected data. The two types of diagrams are bar
diagram and pie diagram.
3.1.4 Pie diagram
Pie diagrams are very popularly used in practice to show percentage breakdowns. The pie
chart is so called because the entire graph look like a pie and the components resemble slice
cut from pie
1]TYPE OF SHOPS

Type of store Numbers

Food store 56

High end grocer 6

Low end grocer 26

Small super 2

Grand total 90

Total

2%
FOOD STORE
29%
HIGH END GROCER
LOW END GROCER
62%
7% SMALL SUPER

INFERENCE

Food stores compute the majority of the shop it conist of 62% of the shop next comes low
end grocer it consist of 29% small super oly 2% of it its less food stores have most sales
among this category
2]Overall billing by the shops

Row Labels Sum of billed amount

FOOD STORE 614839.36

HIGH END GROCER 33394.77

LOW END GROCER 129035.07

SMALL SUPER 34394.43

Grand Total 811663.63

overall billing of shops

4%
16%
FOOD STORE
4% HIGH END GROCER
LOW END GROCER
SMALL SUPER
76%

INFERENCE

it is shown that foodstore has highesr turnover among other shops so majority of
vpos are deployed in food stores especially 33L
3]SUGGESTING COOLERS TO OTHER SHOPS

suggested Not
suggested

49 43

SUGGESTING COOLERS TO OTHER SHOPS

46% YES
54% NO

INFERENCE

We can see a difference in opinion of shop owners while asking about suggesting coolers to
other shops. 54% stated that they will not suggest. The main reason behind this attitude is the
concept about electricity consumption. Other reason is the improper servicing of technical
complaints
4] Type of VISI coolers

Count of
Row Labels VisiCooler

48 ltrs 1

Premium VC 13

VC 110/120L 3

VC 16 Ltr 27
VC 33/35L 46

Grand Total 90

Type Of cooler
50
45
40
35
30
25
Total
20
15
10
5
0
48 ltrs Premium VC VC 110/120L VC 16 Ltr VC 33/35L

INFERENCE

Among the total coolers 33/35L is commonly used in shops because of its convenience to
use,not much space is needed 16ltr vc also use in 27 shops and next comes premium

visi still 33/35l alone make 51% of the total most of the food stores have 33l
 5]COOLER STATUS

Cooler
status numbers
missing 14
off 48
on 21
store
closed 7
Grand
Total 90

Total

8% 16%
missing
23%
off
on
store closed
53%

INFERENCE

Almost 53% of the cooler kept off and 23% kept on 16% of cooler went missing and 8%
of shops remain closed
 6] REASON FOR OFF AND MISSING

Count of
Row Labels Reason

cooler problem 4
electricity
problem 25

not using 14

space problem 14

store closed 1

(blank)

Grand Total 58

Total

cooler problem
0%7%
2%
24% electricity problem
not using
43% space problem

24% store closed

(blank)

INFERENCE

The major problem with the shops are they are not using the coolers also it kept off 43% is
due to electricity charges shops keepers always worry about the electricity charges so they
kept off 24% Is not using the coolers they have no space in their shops for coolers so they
don’t put in the shop 6% say its because of the cooler complaint it remains off
7] VPO ACHIEVEMENT

Achieved No of target %
achievement
NO 17 18.88

Store closed 9 10%

YES 64 71.11%

Grand total 90 100

Total
70

60

50

40

Total
30

20

10

0
NO store closed YES

INFERENCE

Total vpo achievement is 71.11% and around 18.88% of shops didn’t meet the target and
10% of shops closed
8] REASONS FOR NON TARGET

Count of Reason for non

Row Labels target
financial problem 6
less sales 9
not concentrating on
chocolates 1
off season 3
store closed 9
(blank)
Grand Total 28

Total
financial problem

less sales
0%
21%
32% not concentrating on
chocolates
off season

11% 32%
4% store closed

(blank)

INFERENCE

The main reason for here is less sales due to market fluctuations also financial problem
shop owners have face financial problems due to less sales so they don’t buy off
season,not concentrating on chocolates are the other reasons
 9] MONTHLY WISE SALES BY DISTRIBUTER

Month Distributer 1 Distributer 2

BEEJAY THOMAS JOSEPH

AGENCIES & CO

APRIL 183966.15 402784.47

MARCH 127834 322792.17

Monthly wise sales

450000
400000
350000
300000
250000
200000
150000
100000
50000
0
BEEJAY AGENCIES THOMAS JOSEPH & CO

APRIL MARCH

INFERENCE

it is shown that april has more sales than march its because more coolers has been added
to both the distributer outlet during april so we can infer that adding coolers led to
increase in sales because of displaying and customer satisfaction
10] VISI COOLER HELPED IN SALES

Row Count of vc coller helped in

Labels sales

no 31

no opinion 1

yes 50

(blank)
Grand
Total 82

Total

38%
no

61% no opinion
yes
1%
(blank)

INFERENCE

61% says cooler helped in sales because it gives more display and attractive to customers
chocolates main customers are childrens they usually buy by seeing the display whereas
38% said cooler doesn’t have the effect also 1% have no opinion
 CHAPTER 4

INTERPRETATION AND CONCLUSIONS

4.1 INTERPRETATION

 33L coolers are the most used coolers. These coolers are more preferred because of its
convenience and easily achievable Visi Target.and easy to put to display not much
space is needed

 48 out of 90 coolers are not switched on, which means more than 53% of the total
coolers are kept idle.

 The major reason for not switching on the cooler is the electricity charges that should
be afforded by the retailer. 14 coolers are not used and are wasted. The other reasons
for not switching on the cooler are space problem, cooler complaint,store closed etc.

 81% of the coolers are maturity visi which means they are more than 2 years old and
18% of the coolers are not maturity coolers they are received to the shops recently .

 Almost 71% shops have achieved their VPO targets . This shows that majority of the
shops make purchase of chocolate as per the expectation of the company.and they
meet the sales

 Some of the shops have not achieved their VPO targets due to certain reasons. The
major reason is the low sales due to the market conditions. Other reasons include
cooler complaint, financial problem like they have credit problem etc

 Considering the distributors , they are happy with installation of coolers as it will help
in overall target achievement
 In the samples collected for studying most of the shops are filling chocolates of other
companies in coolers provided by Mondelez. It is a pure violation of agreement. Other
companies are increasing their sale in cost of mondelez
 The problem is few of coolers are deployed in wrong shops like small food stores and
many outlets which high sales are not getting coolers eventhrough they asked
 Salesmen complaints about improper distribution system from the company depot. In
their words required products are not supplied and non-moving goods are supplied
which will cause sales decline
 Company sometimes didn’t give the products which the distributors asked sometimes
they face lack of products due to none availability of stock from company

4.2 MANAGEMENT LESSONS

1. The proper flow of communication & information among top to bottom levels of
management is essential.

2. As an employer or manager, one must understand the needs & capabilities of

employee.

3. While being in sales team, I also came to know about the role of sales officer, who
is a person which coordinates each & every activities in order to achieve sales target.

4. The team-work & coordination plays an effective role in the success of any
organization towards its commitment to customers. Each employee’s dedication to the
organization plays a crucial role .

5. Many of the retailers don't even co-operate with sales men in placement of goods in
their outlets. it becomes a tough task for PC's to convince them to place new products
in their outlet

6. Frequent meetings held helps review of performance & status.

7. It is important to maintain daily note on activities done during the entire session or
day.
 8. The performance of any employee or person must be appreciated this helps raise
employee morale.

9. It is necessary to maintain good relation with employee, supplier, vendor, and

customer.

10. Always, identify the problem which is prevailing in the process. Take corrective
measures one step at a time.

11. Whenever you feel difficulty or confusion in your job ,never hesitate to ask for
help.

12.Try to learn new things. Know about others job & operations.

13. In any work environment, always try to maintain long-last relation with your
vendors.

4.3 CONCLUSIONS

Mondelez india is providing coolers free cost to shops but shops are not using it properly. Most
of the coolers are switched off. A proper awareness campaign on electricity consumption of
coolers should be done among shop owners like give them brouchure about cooler
consumption. Technical complaints must be given utmost care as carelessness on these
complaints even lead to missing of coolers.. In overall terms installation of coolers are giving
a mixed impact to mondelez as it helps in increasing sales and it makes loss while the coolers
are kept switched off or ideal and cooler missing also should properly evaluated,installation of
coolers give more sales that the displaying of chocolates in the coolers is attractive and enough
to make the customers buy the products. During the summer training I worked with sales man
of MONDALEZ who deals in various retail markets of KOTTAYAM. I got an enriching
experience about selling and how to convince the customer to buy the product or to win an
order.. Working with one of the worlds top FMCG company like MONDALEZ gave me
practical experiences about nature of consumers, markets and how to deal customers in the
practical life in a market. It was my first time in the market to deal with the customers and
company like MONDALEZ gave me great exposure about the markets, nature of markets,
nature of customers and how to deal with the customers..The experience I got during my
summer training was different from the class room experience. It was great privileage and I
enjoyed a lot working with MONDALEZ, thanks for giving me such an opportunity.
 CHAPTER 5
SUGGESTIONS / RECOMMENDATIONS
1. Salary structure of pc’s should be revised they should be given incentives for vpo
achievement in their area
2. Palmtop which is using for order taking should be updated make it as more user friendly
and add new beats
3. Supply of Cadbury products should be on time when the distributed ordered the
products unavailability of products should be minimized
4. Provide alternative schemes which would aide in the sales of the chocolate products .
Offers and discounts always attracts the customers attention .These schemes would
ideally help beat the competitor market share.
5. Give welfare about electricity consumption of the visi cooler provide brouchure about
the unit consumption at the time of deployment of visi coolers
6. Some of the closed shops are still in the list remove them and add eligible shops which
are outside vpo list and provide them coolers

Sending a technician
Sending a technician quarterly a year will help the maintenance of coolers and cooler
complaint should be avoided

QR code scanning
Qr code scanning is really frustrating because many of the coolerers are stored away
and pc cant scan it instead of it using a tag number for it if the cooler is not present
don’t give the tag number in the palmtop