A

SUMMER INTERNSHIP PROJECT REPORT

ON

“AN ANALYTICAL STUDY ON PERCEPTION OF RETAILERS SELLING

INSTANT NOODLES WITH SPECIAL REFERENCE TO
PATANJALINOODLES”

FOR
PATANJALI MEGASTORE, CHINCHWADGAON
SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY
IN PARTIAL FULFILLMENT OF TWO YEARS FULL TIME
COURSE OF
MASTERS IN BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY
SUSHANT MUNDE
(Marketing)

UNDER THE GUIDANCE OF

DR. ANUJA JOHRI

PIMPRI CHINHCWAD EDUCATION TRUST’S

PIMPRI CHINCHWAD COLLEGE OF ENGINEERING
NIGDI - PUNE- 411044

BATCH – 2017-2019
Introduction

Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) is products that
are sold quickly, and at relatively low cost. Examples include non-durable goods such as
packaged foods, beverages, toiletries, over the counter drugs and other consumables. The
growth of the internet over the past quarter century, and the rise of the brand
community phenomenon has contributed greatly to demand. According to the AGOF internet
facts, 73% of Germany's population is online. Additionally, 83.7% of internet users claim to
use the web to search for information and 68.3% shop online. Vendors use this to their
advantage to connect with consumers and market their goods. This can then be used to target
those consumers who show high identification with a specific brand or good. Marketers of
FMCG have discovered this capability and are using it to build relationships with their
customers to understand what they want.

Many fast moving consumer goods have a short shelf life, either as a result of high consumer
demand or because the products deteriorate rapidly. Some FMCG, such as meats, fruits;
vegetables, dairy products, and baked goods are highly perishable. Other goods, such as pre-
packaged foods, soft drinks, candies, and toiletries have high turnover rates. Sales are
sometimes influenced by holiday or seasonal periods.

The penetration of FMCG in rural area is not high as yet but the opportunity of growth in this
area is huge by means of enhanced penetration into the rural market and conducting the
awareness programmed in this area. The scope of growth of FMCG sector is high as per capita
consumption of FMCG products is low in comparison to the developed countries.

The term ‘instant food’ means simple, fast and convenient food, which is easy and fast to
prepare besides being hygienic, free from microbial contamination and also convenient to eat.
Canned foods, frozen foods, instant food mixes and dried foods come under this category. A
fast paced urban lifestyle, increasing prevalence of nuclear family structure, rising disposable
income, increasingly larger number of globe- trotting consumers with an experimental palate
are all favorable demographic factors spurring the adoption of instant food at global level.

There is variety of instant / ready-to-eat foods available in the Indian market to choose from.
There is a tremendous potential for commercial exploitation of instant foods as his industry is
in a nascent stage. The companies like ITC, Nestle, MTR, PATANJALI, Hindustan Unilever
Limited share a major pie of the instant food market in India

Instant Noodle Market-

Due to rising demand for instant noodles in the global market it is expected to reach 145.8
billion packs by 2020 according to Net scribes research. In the global market the market share
for India is ranked as fifth in terms of instant noodles.

The Indian instant noodles market was valued at USD 1438.04 million in 2017 is expected to
register a CAGR of 5.6 % during the forecast period (2018-2023).

This growth is caused due to the increasing youth population, increasing disposable income,
higher brand consciousness, and changing consumer preferences. Market leaders, such as
Nestle SA, CG Foods India Pvt. Ltd, invested in cup noodles which take less time to be
prepared, offers good taste, and can be eaten straight from the packaging as compared to packet
noodles. Growth of Cup noodles was fulfilled by customers who have busy lifestyles. The
traditional grocery stores accounted for the dominant market share of about 60% in 2017 and
are expected to register a CAGR of 5.5% during the forecast period. Market of noodles is
categorized as supermarket, grocery, online stores, etc. [13]

After coming back again in market, Nestle India Ltd reported a 50% jump in its net profit for
the quarter ended 30 June. Net profit for the June quarter stood at Rs 395.03 crore as against
Rs 263.43 crore in the year-ago quarter. Revenue from operations grew by 8.6% during the
quarter, helped by volume growth across categories, to Rs 2,698.40 crore from Rs 2,484.73
crore in the same quarter last year. Its revenue from domestic market grew by 8.5% and exports
by 8%% during the quarter under review.[14]

3
 Objectives and Scope

OBJECTIVES:

Following objectives are taken to go ahead with study.

1. To study and analyze instant noodles market in India.

2. To analyze the retailer’s perception selling noodles.
3. To understand and analyze PATANJALI noodles sale in reference to other noodles brand.

Scope:

The particular study has scope in PCMC area and it takes the perception of retailers only
about PATANJALI instant noodles.

5
Organization Profile

TYPE: Private

INDUSTRY: Consumer Goods

FOUNDER: Ramdev Baba, Acharya Balkrishna

Headquarter: Haridwar

Area Served: India, Nepal, Bangladesh, Sri Lanka, Middle East, Saudi Arabia

Products: Food Beverages, Cleaning agents, Personal Care products & Ayurveda Medicine.

Revenue: Rs. 20000 Cr (2017-18)

Number OF Employees: 200000

Website: www.patanjaliayurved.net

www.patanjaliayurved.org

History:

The PATANJALI Ayurveda Limited is an Indian FMCG company. Manufacturing

units and headquarters are located in the industrial area of Haridwar while the registered
office is located at Delhi. The company manufactures mineral and herbal products. It
also has manufacturing units in Nepal under the trademark Nepal Gramudhyog and
imports majority of herbs in India from Himalayas of Nepal.
 Products:

PATANJALIAyurveda produces products in the categories of personal care and food. The
company manufactures more than 900 products including 45 types of cosmetic products and 30
types of food products. According to PATANJALI, all the products manufactured
byPATANJALI are made from Ayurveda and natural components PATANJALI has also
launched beauty and baby products.PATANJALI Ayurveda manufacturing division has over 300
medicines for treating a range of ailments and body conditions, from common cold to chronic
paralysis.

PATANJALI launched instant noodles on 15 November 2015.Food Safety and Standards

Authority of India slapped a notice on the company as neither PATANJALI nor Aayush, which
are the two brand names under which PATANJALI got licenses, have got any approval for
manufacturing instant noodles.

In 2016, PATANJALI has announced to enter the textile manufacturing centre. The company is
reported to manufacture not only traditional clothes such as Kurta Pajama but also popular
western clothes such as jeans.

On 5 November 2016, PATANJALI announced that it will set up a new manufacturing plant
PATANJALI Herbal and Mega Food Park in Balipara, Assam by investing ₹1,200
crore(US$170 million) with the manufacturing capacity of 1,000,000 tonnes (2.2×109 lb.) of
goods per year. The new plant will be the largest facility of PATANJALI in India and will be
operational by March 2017. PATANJALI already has around 50 manufacturing units across India.

MISSION:

1. To reach the great heights.

2. To restart the swadeshi movement.
3. To produce good quality products at cheaper rates.
4. To introduce Indian Ayurveda to this modern world.
5. To crack the maximum market share.

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VISION:

1. To be a top Ayurveda company among all MNC’s.

2. To re-introduce the Indian Ayurveda.
3. To crack the world’s attraction to our India.
4. To work for the welfare of humanity.
5. To reinvent our traditional knowledge of yoga and Ayurveda.

BOARD OF DIRECTORS:

1) Mr. Babukaji Shrestha:

Mr. Babukaji Shrestha serves as President, Head of Finance Department and Director at
PATANJALI Ayurveda Kendra Pvt. Ltd. Mr. Shrestha chairing Board meetings, Management
Review meetings, and Monthly staff meetings, he approves the formulation of Quality
Management System (QMS) and see to its proper implementation.

2) Mr. Raju Shrestha:

Mr. Raju Shrestha serves as Managing Director and Head of Administration Department at
PATANJALI Ayurveda Kendra Pvt. Ltd. Mr. Shrestha Owns Speedway Cargo (P.) Ltd. and
Asiatic Traders & Exporters. Mr. Shrestha serves as Vice President of Thamel Tourism Board.
Mr. Shrestha serves President of Elite Nepal (P.) Ltd. He serves as a Director at PATANJALI
Ayurveda Kendra Pvt. Ltd. Mr. Shrestha is Export Council of Nepal ECON-Immediate Past
President. Mr. Shrestha is a Member of Freight Forwarders Association, Chamber of
Commerce, FHAN -Federation of Handicrafts Association of Nepal and Garments Association
of Nepal. He holds awards includes CIP- Commercially Important Person Award for
outstanding contribution for the promotion of handicrafts through exports from HMG- His
Majesty s Government of Nepal in AD-2004, CIP- Commercially Important Person Award
from HMG in AD-2007 in recognition of outstanding contribution in promoting export trade of
Nepal, Awards for outstanding exports from Nepal Chamber of Commerce from AD-1998 to
2007 (10 Awards) , Awards for outstanding exports from Handicrafts Association of Nepal
from AD-1999 to 2005 (7 Awards), Awards for outstanding exports from Export Council of
 Nepal from AD-2002 to 2007 (5 Awards) and Awards for outstanding exports from Export
Promotion Board from AD-1998 to 2004. (7 Awards).

AREA SERVED:

MIDDLE EAST

INDIA

NEPAL

BANGLADESH

SRI LANKA

Achievements:

 Giant FMCG only in 5 years

 Accomplished “Make in India” concept
 Highest Turnover Cum Profit (2007-250 crores& 2015 2,215 crores.
 Maximum outlets in minimum time (2007 150 outlets &Now 2015 15,000 exclusive +
1,00,000 stores)
 Biggest Swadeshi movement
 Tough competitor in the market for other MNC &Indian companies.

9
Future goals and plans:

 They want to achieve 10,000 crore business.

 To expand the business at global market at next 5 years.
 Planning produce beverage drinks.
 Planning produce oats chips, noodles as the crack market share of other MNC.
 To reach the great heights as to lower the demand for MNC.
 Planning to open its outlets railways stations and airports.
 Planning to advertise through McCann and Mudras for next level of marketing plans.

COMETITORS OF PATANJALI:

1) HINDUSTAN UNILEVER LTD:

Function: HUL works to create a better future every day and helps people feel good, look good and
get more out of life with brands and services that are good for them and good for others. ... Unilever
has over 67% shareholding in HUL.

2) ITC:
Function: The primary role of the Board of Directors is that of trusteeship to protect and enhance
shareholder value through strategic supervision of ITC, its wholly owned subsidiaries and their wholly
owned subsidiaries. As trustees they will ensure that the Company has clear goals relating to
shareholder value and its growth.

3) PROTECTOR AND GAMBLE:

Function: GBS also supports P&G business units and employees in areas such as accounting
and financial reporting, information technology, purchases, payroll and benefits
administration, and facilities management. Lean Corporate Functions ensure
ongoing functional innovation and capability improvement.

4) DABUR INDIA:

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Function: Dabur India Ltd is one of the leading FMCG Companies in India. The company is also a
world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurveda products. They operate in key
consumer products categories like Hair Care Oral Care Health Care Skin Care Home Care and Foods.

SWOT ANALYSIS OF PATANJALI:

Strength:

 100% natural products with little side effects.

 Brand image of the trust.
 Considered socially responsible for health of the society.
 Established distribution network in urban areas.

Weakness:
 Low export levels.
 Strong competitors and availability of substitute products.
 Less expenditure on marketing and promotional activities.
 No distribution networking rural areas.

Opportunities:

 Changing lifestyle and rising income levels.

 Change in trend of becoming more health conscious and using more organic products.
 Large domestic market.
 Rural market to be tapped.

Threats:

 Political Interference.
 Removal of import restrictions.
 Controversies.
INDUSTRY PROFILE

Introduction.
Instant noodles have become essential in the urban kitchen with the rapid changing way of life
in Indian market. This is because instant noodles are easy to cook being time saver besides
being easy on the taste and also they are greatly liked by the children.

Instant noodle is made from the mixture of wheat flour, water, starch, salt and other flavor
enhancer. The fashion of consumption of convenience food began in western world and
extended to other regions quickly. Consumer looks for noodles which are easily obtainable,
have nutritive value, etc.

Due to changing lifestyles, consumer wants convenient foods which are easy to cook and
consume. Instant noodles are considered convenient as there is no need to put in efforts in
cooking & chopping vegetables, globally the market (Volume) for instant noodles is estimated
to grow at the rate of about 5% from 2017 to 2023.The report published by World Instant
Noodles Association showed India to be fourth in global consumption of instant noodles with
5.5 billion servings per year.

Growth of instant noodles market in India

Since the last five years the total market for instant noodles is growing at a healthy rate with
more than 20% CAGR. But due to controversy of MSG in Maggi noodles the sales was reduced
by almost 14% in the year 2015-16. This became a important chance for other competitors like
CG Foods and ITC Sun feast Yippee to take hold of a bigger share of this category. The Indian
instant noodles market was valued at USD 1438.04 million in 2017 is expected to register a
CAGR of 5.6 % during the forecast period (2018-2023). This growth can be attributed to the
increasing youth population, increasing disposable income, higher brand consciousness, and
changing consumer preferences

Segmentation of instant noodles/

From packaging point of view instant noodles is divided into two segments i.e. packet/pouch
noodles and cup/bowl noodles. From packaging side, flexible plastic is mostly preferred by

13
customer. Packet noodles have highest market proportion and are projected to dominate instant
noodles market during forecast period. Cup noodles can also expand its territory in near future.

Segmentation is also done on the basis of broth which includes sea-food, chicken, vegetable,
and others. Vegetable noodles will show higher growth rate over the forecast period.
Similarly, on the basis of distribution channel, store based and non-store based.

Distribution of Instant Noodles

Noodles Factory -----> Distributor -----> Wholesaler -----> Consumer

During past few years there has been a significant expansion in distribution channels in India.

A firm can deliver its products to the user through a variety of channels, using a range of
marketing intermediaries. Most Indian manufacturers use a three-tier selling and distribution
structure. This structure involves redistribution stockiest, wholesalers and retailers.

Retail suppliers are the one who generates more than two third sales revenue of instant
noodles.

The traditional grocery stores accounted for the dominant market share of about 60% in 2017
and are expected to register a CAGR of 5.5% during the forecast period.

By distribution channel, the market is divided into hypermarket/supermarket, traditional

grocery stores, online retailing and others. The online sales account for a significant share
mainly due to the increase in online channels such as Pepper Tap and Big Basket.
 Key Market Players:

There are roughly 10 big brands that have high market share available in India such as Top
Ramen, Yippee, Ching’s Secret, Knorr Soupy Noodles, Wai-Wai, etc. Patanjali group has also
launched noodles in India with brand “Patanjali Atta Noodles” and advertised the noodles as
healthy noodles which is made from wheat flour and their share is growing with 11.8% among
FMCG product.

Some of the Noodles brand in India is listed as:

 Maggi: Maggie was introduced in 1983. It is one of the favorite brands among noodles
companies which are consumed by almost all Indians. This brand has faced many
controversies like fail in food safety but after so much banned it returned and covered its
entire market share instantly.
 Yippee: Yippee belongs to company ITC which was introduced in 2000. During the ban
of Maggie, yippee was market leader who crossed the market share of Maggie.
 Top Ramen: Top Ramen is produced by Nissin India. The company covered Indian
market in the year 1988. It took a while for Top Ramen to become one of the leading
noodle brands in India.

15
 Ching’s Secret: Ching’s Secret is a product of Capital Food Indian Limited which is the
more popular one and is giving stiff competition to the top noodle brands in India. It offers
a vast range of products to its customers that include Schezwan Instant Noodles, Singapore
Curry Instant Noodles, Hot Garlic Instant Noodles, Egg Hakka Noodles and Veg Hakka
Noodles.
 Knorr Soupy Noodles: Knorr Soupy Noodles is a product of Hindustan Unilever which
is also a popular brand in India of late. Knorr is famous for its unique range of soups in
India and is the leading brand for the same. Knorr noodles range consists of Mast Masala
Soupy Noodles, Knorr Chinese Noodle Hot Spicy, Knorr Chinese Noodle Schezwan,
Chinese Noodles and Fried Rice.
 Patanjali Noodles: Yog guru baba ramdev introduces desi noodles to take on Maggi
Noodles and through this launch of this product the Market become more competitive.
Patanjali was a good competition for Maggie also. Patanjali will gain more share because
of powerful distribution system and its association with desi and Healthy Noodles.
 Horlicks Foodles: Foodles offer two healthy variants: Regular and 4 Grain with a
trademarked Health maker sachet which has 9 Power Vitamins. The 4 Grain variant is
made with nutritious grains like Rice, Ragi, Wheat and Corn. As a sub-variant, each of the
two varieties comes in three different flavors.
 Nissin Scoopies: Nissin Scoopies belongs to Nissin India who manufactured and marketed
the Noodles in India in 1958 with a brand name “Chicken Ramen”. Nissin Foods began
introduction of a long list of successful and innovative ramen products.
 Wai Wai Noodles: Chaudhary Group introduces Wai Wai noodles. This product we can
say that this Nepal’s best kept secret in Noodles. Wai Wai is growing too fast with good
market share in Tamilnadu.
 Joymee Instant Noodles: Joymee Noodles is the products of Inbisco with production
about 300 tons of noodles a month and 600 tonnes of candies a month at its Hyderabad
plant. Also they are planning to expand their business to pan India by setting up new plants
in the different areas.
With the ban of Maggie, the instant noodles market has new players with the expansion of
market share. Nestle used to have 60% market share. Sun feast Yippee have 22% market share.
Hindustan Unilever’s Knorr has 2% share where Ching’s Secrets has 1.9% market share.
Patanjali's Atta Noodles, which was launched after the ban, has market share 1.3% in less than
two years of its launch. Similarly brands such as Joymee, Palm Eatables, Marwari noodles and
others too have gained over 2% market share.
Market Size
 Due to rising demand for instant noodles in the global market it is expected to reach
145.8 billion packs by 2020 according to Net scribes’ research. In the global market
the market share for India is ranked as fifth in terms of instant noodles.
 The Indian instant noodles market was valued at USD 1438.04 million in 2017 is
expected to register a CAGR of 5.6 % during the forecast period (2018-2023).
 This growth is caused due to the increasing youth population, increasing disposable
income, higher brand consciousness, and changing consumer preferences. Market
leaders, such as Nestle SA, CG Foods India Pvt. Ltd, invested in cup noodles which
take less time to be prepared, offers good taste, and can be eaten straight from the
packaging as compared to packet noodles. Growth of Cup noodles was fulfilled by
customers who have busy lifestyles. The traditional grocery stores accounted for the
dominant market share of about 60% in 2017 and are expected to register a CAGR of
5.5% during the forecast period. Market of noodles is categorized as supermarket,
grocery, online stores, etc. [13]
 After coming back again in market, Nestle India Ltd reported a 50% jump in its net
profit for the quarter ended 30 June. Net profit for the June quarter stood at Rs 395.03
crore as against Rs 263.43 crore in the year-ago quarter. Revenue from operations
grew by 8.6% during the quarter, helped by volume growth across categories, to Rs
2,698.40 crore from Rs 2,484.73 crore in the same quarter last year. Its revenue from
domestic market grew by 8.5% and exports by 8%% during the quarter under review.

Market Risks:
Recently high amount of lead was found in Maggie noodles. This had sizable
negative impact on the demand for noodles as a whole marring growth of other
competitors too. In another instance, presence of MSG (Monosodium Glutamate)
among the ingredients caused a major trust deficit among the consumers.

17
  Market size of noodles in India from 2009 to 2019 (in billion U.S. dollars)

Regulatory Board:
After the controversy of Maggie noodles, Food safety regulator Food Safety Standards
Authority of India (FSSAI) is setting new regulation for quality standards especially for
instant noodles in order to bring clarity in quality standards. Previously there was common
standard for ready to cook products. FSSAI had asked to take action against those noodles
companies who add MSG on their product despite having label with “No MSG” or “No
added MSG”.
For manufacturing instant noodles, FSSAI set standards to specify ingredients used, quality
and safety parameters to the industries. The standards also provide that the product shall be of
good characteristic in terms of color, texture, appearance, aroma and taste and shall be free
from added color, insect’s larvae, dirt, undesirable taste and impurities or any other extraneous
matter. There is also limitation for parameters such as moisture content, acid value, and acid
insoluble ash in this standard. Any violation of labeling requirement can cause action to the
industry as per Food Safety and Standards Act 2006 and regulations there under shall be taken
by the state authorities concerned.
Literature Review

1) Bimalendu (2011) In their research conducted a detailed study on marketing management of ITC
aashirvaadatta. Though initially some kind of social stigma was attached with aashirvaadatta due
toITC’s linkage with tobacco products but it has established itself as the number one branded Atta
among national branded players within barely two years of launch due to significant investment in
brand building activities and by scaling up the supply chain to meet the market requirements in cost
effective manner.

2) Anand (2013) this research studied the brand preference of cold-drinks by the consumers in the
rural areas. Majority of the respondents feel that the price of cold-drinks should be reduced and they
prefer Coca-Cola and limca more as compare categories. Majority of the respondents feel that the price
of cold-drinks should be reduced.

3) RahulMahabade, RajshriSoni (2018) this research paper focuses on perception of consumers post
ban towards Maggi instant noodles. Researcher has taken 50 sample size of age group of 15 and above.
Research is conducted in city of Mumbai using convenience sampling method. The study deals with
consumer behavior towards Maggi in post ban scenario is interlinked with wellness and health industry
as ban was due to hazardous content in the Maggi.

4) Praveen BabuChiruthoti (2015) this research Food processing industry Food processing is
converting raw food and other farm produce into edible, usable and palatable form. It is the conversion
of clean, harvested, butchered or slaughtered components into marketable food products with value
addition so as to improve their quality, reliability and shelf life. Further Food processing is about
preservation of food while providing greater potential for export. Food processing is a large sector and
includes industries that use agriculture, horticulture, plantation, animal husbandry and fisheries inputs
for manufacturing of edible products.

5) Victoria and Ganesan (2014) Attempted to analyze the role of sales promotion towards instant
food products and predict their demand. The study identified the demographic and behavioral factors
influenced by sales promotion. It was fond that majority of the consumers of instant food products

19
are young generation people and working people below 45 years who belong to nuclear family with
moderate monthly income. Instant consumption, time saving, taste and convenience are considered
as major factors influencing their purchase. Hence the study recommends manufactures to pay much
attention to these factors while developing their sales promotion activities.

6)Yee and Young (2015) In their research Aimed to create awareness of high fat content of pies,
studied consumer and producer awareness about nutrition labeling on packaging. For this, seven
leading pie brands were analyzed for fat content and are ranged from 7.1 to 19.2% fat. Potato toped
or cottage pies had the lowest fat content (7.1-19.2%fat). Most pies did not display nutritional
labelling on packaging. Over half of the consumers (52%) who responded to the survey (42%
response rate) was aware of the campaign. The study was successful at raising consumer awareness
about the high fat content of pies and influencing the food environment with a greater availability
of lower fat pies.

7) Lan TT, Darryl M small (2017) This research Asian styles of noodle products represent the
end use of at least one eighth of all wheat produced globally and are potentially a good dietary
source of essential nutrients. In order to investigate the factors influencing thiamin content, three
styles of noodles were made under controlled laboratory conditions. The losses during preparation
of dried white salted noodles were low. Boiling of these noodles resulted in a 43% decline in total
thiamin level. In contrast, the relative losses of thiamin were high for yellow alkaline noodles.

8) Nag raja (2014) in his study on consumer behavior in rural areas: a micro level study on buying
behavior of rural consumers has opined that, buying behavior of consumers is very much influenced
by experience of their own and of neighbor consumers and also his own family. The involvements
of his own family members was exerting maximum influence on his purchases. Above all, the
quality of the product and its easy availability were the primary and the vital determinants of his
buying behavior. Consumers were influenced by touch and feel aspect of any promotional activity.

9) Usha (2007) this research conducted a study on buying behavior of consumers towards instant
food products in Kolar district. It revealed that the average per capita purchase and per capita
expenditure of Instant food products had a positive relationship with income of households and
housewives are the major decision makers regarding consumption of instant food products.
According to the study dosa/idly consumers were found to be medium loyal, pickles and sambar
masala consumers belonged to higher loyalty group.

10) Karappuswamy and Arjunan (2012) analyzed the existing buying behavior of instant food
products in Coimbatore. It showed that expenditure on instant food products was found to be
highest in higher income groups. Major reason cited for non-consumption of instant food products
is that the respondents make these food products at less cost and with better taste.

21
THEORETICAL BACKGROUND

The Indian Fast Moving Consumer Goods (FMCG) industry began to shape during the last
fifty odd years. The growth of FMCG industry was not significant between 1950’s to the 80’s.
The FMCG industry previously was not attractive from investor’s point of view due to low
purchasing power and the government’s favoring of the small-scale sector. FMCG’s growth
story further continued following the deregulation of Indian economy in early 1990s. With
relatively lesser capital and technological requirements, a number of new brands emerged
domestically as well, while the relaxed FDI conditions led to entry of many global players in
this segment. These factors made FMCG market in India highly competitive and one of the
important contributor in the Indian economy.

In the mid - nineties, the growth of the sector was very fast where as it declined rapidly at the
end of the decade. The initial growth was due to increase in product penetration and

Consumption levels4. Riding on a rapidly growing economy, in-creasing per-capita incomes,

and rising trend of urbanization, the FMCG market in India is expected to further expand to
$100 billion by 2025.

Growth of FMCG sector

The Indian FMCG sector growth between 2006 to 2013 has been phenomenal (approximately
16%). The industry has tri-pled in size over the last 10 years, growing much faster than in past
decades.

Growth of Indian FMCG sector

Even during the slowdown of the Indian economy, the FMCG sector has registered a growth
rate of 14.5 percent for the year 2007-08 6. According to Nomura, the volatility in agriculture
sector has not had much impact on FMCG sector7. The comparison of past ten years’
performance of top 50 Glob-al FMCG companies versus the Indian top 50 FMCG companies
shows that India has outperformed global growth across all major FMCG categories8. As per
Pricewaterhousecoopers Private Limited, India is second biggest market for Soaps & cleansers
 in Asia after China. The growth for Indian FMCG sector for Food, beverages and tobacco
segment is promising in near future.

DISTRIBUTION PROCESS:

Distribution or place is one of the four elements of the marketing mix. Distribution is the
process of making a product or service available for the consumer or business user that needs
it. This can be done directly by the producer or service provider, or using indirect channels
with distributors or intermediaries. The other three elements of the marketing
mix are product, pricing, and promotion.

Decisions about distribution need to be taken in line with a company's overall strategic vision
and mission. Developing a coherent distribution plan is a central component of strategic
planning. At the strategic level, there are three broad approaches to distribution, namely mass,
selective or exclusive distribution. The number and type of intermediaries selected largely
depends on the strategic approach. The overall distribution channel should add value to the
consumer.

DISTRIBUTION STRATEGIES:

1. Mass Distribution: When products are destined for a mass market, the marketer
will seek out intermediaries that appeal to a broad market base. Example: snack
foods and drinks are sold via a wide variety of outlets including supermarkets,
convenience stores, vending machines, cafeterias and others.

2. Selective distribution: A manufacturer may choose to restrict the number of outlets

handling a product. Example: a manufacturer of premium electrical goods may
choose to deal with department stores and independent outlets that can provide
added value service level required to support the product.

23
 3. Exclusive distribution: In an exclusive distribution approach, a manufacturer
chooses to deal with one intermediary or one type of intermediary. The advantage
of an exclusive approach is that the manufacturer retains greater control over the
distribution process. In exclusive arrangements, the distributor is expected to work
closely with the manufacturer and add value to the product through service level,
after sales care or client support services.

WAY FORWARD:

1. Strengthen inbound logistics like raw material handling & warehousing.

2. Increase its operational efficiency to keep costs in control.
3. Increase capacity of manufacturing facilities to cater to increasing consumer
demand for its products.
4. Strengthen its distribution channel to penetrate to rural markets.
5. Establish its brands so that consumers make repeat purchases and not one time
purchase.
6. Reinventing the brands based on consumer acceptance.
7. Increase its presence in digital space to suit to the current era.
RESEARCH METHODOLOGY

7.1Research:
Research means implies a repetitive denotes making a thorough examination of or looking over
carefully in order to find something. The research approach was used survey method which is a widely
used method for descriptive type of research survey included research instrument like questionnaire
which can be structured and unstructured.

Research is “A search for knowledge”. Research comprises defining and redefining problems,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making
deductions and reaching conclusions to determine they fit the formulating hypothesis.

7.2 Type of research:

Exploratory research is research conducted for a problem that has not been studied more clearly,
intended to establish priorities, develop operational definitions and improve the final research design.
Exploratory research helps determine the best research design, data-collection method and selection
of subjects.

Exploratory research design does not aim to provide the final and conclusive answers to the research
questions, but merely explores the research topic with varying levels of depth. It has been noted that
“exploratory research is the initial research, which forms the basis of more conclusive research.

7.3Research Methodology:
Research can be defined as “an activity that involves finding out, in a more or less systematic way,
things you did not know”

Research Methodology chapter of a research describes research methods, approaches and designs in
detail highlighting those used throughout the study, justifying my choice through describing
advantages and disadvantages of each approach and design taking into account their practical
applicability to our research.

25
 7.4 Sources of Data Collection:
Another important factor for a research is the type of sources used for the research.
To make the report more meaningful and presentable, two sources of data and information were used
widely. Both primary and secondary data sources were used to prepare this report.

Collecting primary data involved feedback form. Questionnaires have been used as a medium of
collecting primary data for preparing this report.

7.5 Sampling
Sampling is a process of obtaining the information about the entire population by examining a part of
it. The effectiveness of the research depends on the sample size selected for the survey purpose.

7.6 Sample Design

 Type of Data :primary data and secondary data

 Data collection tool: Questionnaire (Retail Survey)
 Population: Retailers survey in PCMC area
 Sampling Unit: Retailers
 Sample Size: 80
 Sampling Method: convenience sampling method
Data analysis and Interpretation

1) Do you sell noodles?

Sell Noodles Number of retailer Percentage
YES 79 99
NO 01 1

Sell Noodles

120

100
YES
80
NO
s 60

40

20

0
Number of Retailer Percentage

Interpretation:

The above table shows that only 1 retailer do not sell noodles and 79 retailer sell instant noodles
as it is very important 1 retailer shop is small and other retailers are good location and big space.

27
2) Which brand instant noodles do you keep in your store?

Brand Number of retailers Percentage

Nestle 48 60
ITC 20 25
HUL 4 5
Patanjali 4 5
Others 4 5

Brand
Nestle ITC HUL PATANJALI Others

5
5
5

25
60

Interpretation:
The above table shows that 60% of retailers are nestle brand Maggi in store and other brands
instant noodles 20% keep in store. Because, customer preference is more purchase nestle Maggi
and sun feast Knorr and patanjali are rarely purchased.
3) Which brand of instant noodles is sold more in your store?
Brand Number of retailer Percentage
Nestle 48 60
ITC 16 20
HUL 4 5

PATANJALI 8 10
Others 4 5

Sold More
70

60

50

40

30

20

10

0
Nestle ITC HUL PATANJALI Others
BRAND

Number of Retailer Percentage

Interpretation:
The above table shows that 48 retailers are sold nestle Magi and more stock in store. Sun feast,
Knorr and patanjali are less stock. Retailer’s preferences to customers demand and need of this
product.

29
4) Which brands noodles you prefer to stock more?
Brand Number of retailer Percentage
Nestle 52 65
ITC 12 15
HUL 4 5
PATANJALI 12 15

Stock
70

60

50

40

30

20

10
56 65 12 15 4 5 12 15
0
Nestle ITC HUL PATANJALI

No. of Retailer Percentage

Interpretation:
The above table shows that 65% retailer are prefer stock in nestle Maggi because sell of product
is more.
5) How often does the distribution visits your shop in a week?

Tentative Distributor in visit Number of retailer Percentage

One in a week 70 90
Twice in a week 10 10
Thrice in a week - -

Tentative Distributor in visit

180

160

140

120

100

80

60

40

20

0
Once in week Twice in a week Thrice in a week

No. of Retailer Percentage

Interpretation:
The above table shows that distributor visit in retail shop mostly once in a week and sometimes
he visits twice in a week.

31
6) From above brands which distributor deliver product on time?

Brand No. of retailer Percentage

Nestle 40 50
ITC 20 25
HUL 4 5
PATANJALI 16 20

Distributor Delivery
60

50

40
Axis Title

30

20

10

0
Nestle ITC HUL PATANJALI
Axis Title

No. of Retailer Percentage

Interpretation:
The above table shows that which brand noodles distributor visits and provide good service
to retailers. The Nestle brand is good service provide to customer and other are not provide.
7) Which company gives product replacement if product is expired or damaged?

Product is expired or damaged No. of Retailer Percentage

YES 60 80
NO 20 20

90

80

70

60
Axis Title

50

40 No. of retailer
Percentage
30

20

10

0
Category 1 Category 2
Axis Title

Interpretation:
The above table shows that product is damaged or repaired they will replace. But, some retailers
are complaint about distributor will not replacement noodle packet or box.

33
8) Which age group are more respondent of instant noodles?

Age Group Percentage

7-15 40
16-20 20
21-30 20
31-50 10
51& above 10

45

40

35

30

25

20 Series1

15

10

0
7 to 15 16 to 20 21 to 30 31to 50 51& above

Interpretation:
The above table shows that 7 to 15 age group is children. Children daily routine is tight and if they are
very hungry most of the times they prefer noodles and college student also during snack time eat
instant noodles. Others people sometimes purchase and eat noodles.
9) Which instant noodles brands satisfies more?

Brand No. of retailer Percentage

Nestle 50 70
ITC 10 10
HUL 10 10
PATANJALI 10 10

80

70

60

50
No. of retailer
40
Percentage
30

20

10

0
Nestle ITC HUL PATANJALI

Interpretation:
The above table shows that retailers most favorite brand in noodles is Nestle. And others brands are
not satisfying the retailers.

35
Q.10) Are you selling PATANAJLI instant noodles?

Selling Number of retailers Percentage

YES 50 70
NO 30 30

Selling Noodles
80

70

60

50

40

30

20

10

0
YES No

No. of Retailer Percentage

Interpretation:
The above table shows that 50 retailers are selling patanjali Noodles and remaining 30 are not
selling patanjali noodles because they are not get profit margin from patanjali organization and
customers are also not purchasing the product.
11) Which flavor PATANJALI noodles are sold more?

Flavor Sales in month

Classic 40(packets)
chatpata 30(packets)
vegetables 05(packets)
Dal Tadka 05(packets)

Sales

classic Chatpata vegetables Dal Tadka

Interpretation:
The above table shows that patanjali flavor of noodles more sold is classic and chatpata. It was
launched in first time in market. Vegetables is one year ago launched and Dal Tadka is recently
launched.

37
Findings
Any project is not completed without any kind of finding during SIP can be enumerated follows.
 60% of retailers are satisfied in selling nestle Instant noodles.
 In this study we find that the noodles offered by patanjali healthier than previous by
offered others FMCG companies’ noodles.
 According retailers the profit margin given by patanjali is less than margins offered by
other companies.
 Out of 80 retailers 3 retailers are not happy with distribution given by patanjali.
Suggestions
 I have suggested them to placed stickers in slacks as per varieties of products.
 I suggested them to explain offers to customers and the schemes available.
 I suggested them to take feedback from customers about the products available and
about their expectations for current available products.
 I suggested them to provide training to employees for their skill development.
 The company needs to satisfy customer’s needs that are complicated and difficult to
manage. So, data warehouse should to be create where meaningful data on customer
preferences and there spending pattern can be viewed.

39
Conclusion
The project undertaken has helped a lot in gaining knowledge of perception of retailers selling
instant noodles” in PATANJALI MEGASTORE. From the research taken it can be concluded
that retailers are not very much satisfied with Patanjali instant Noodles. It is a long way to go
for Patanjali to grab the market share and become number one in the market.SIP for two months
get lot of insight in how to store product, to take display of the products and overall
management of a megastore.
Learning came in the form of converting the theoretical knowledge of marketing into the
practical one. This study helped intern in getting knowledge about the behavior and preference
of retailers in selling instant noodles.
Instant noodles market is growing and expanding in Indians well as globally and for Patanjali
need to make its distribution channel and retailers happy so as to satisfy customers. They need
to strategize and should come out with new taste to satisfy Indian Palate.
Overall it was great learning experience.
BIBLOGRAPHY
References:
1. www.itcportal.com
2. www.Nestleindia.com
3. www.wikipedia.com
4. www.scribd.com
5. www.researchgate.net
6. http://iosrjournals.org/iosr-jbm/papers
7. https://www.ukessays.com/essays/marketing/instant-noodle
8. http://krishikosh.egranth.ac.in
9. http://dspace.bracu.ac.bd/xmlui/bitstream/handle
10. https://www.researchgate.net/publication/314216580_An_Overview_of_Indian_FM
CG_Sector

Research Paper:
[1]PRAVEEN BABU CHIRUTHOTI (2015) A STUDY ON CONSUMER PURCHASING
BEHAVIOUR OF INSTANT FOOD PRODUCTS IN ANDHRA PRADESH Pg.NO- 24
[2]Karuppusamy, A and Arjunan, C. (2012.) A study on consumer buying behavior towards
instant food products in Coimbatore. Namex International Journal of Management Research.
2(2): 23-30
[3] Usha, V. (2007.) A study on buying behavior of consumer towards instant food products
in Kolar district. MBA (ABM) Thesis. University of Agricultural Sciences, Dharwad, India.
[4] Victoria Alexander, C.V. J and Ganesan, M. (2014). A study on role of sales promotion
in FMCG products towards instant cooking food products. Indian Journal of Applied Research.
2(1): 292-295
[5] Nag raja. (2004). Consumer Behavior in rural areas: A micro level study on buying
behavior of rural consumers in KavalMandal. Indian Journal of Marketing. 34(11): 30-35.

41
 Annexure

QUESTIONNARIE:

Q.1) Name

Q.2) Contact Number

Q.3) Do you sell Noodles?

1. YES
2. NO

Q.4) which brand of instant noodles do you keep in your store?

 Nestle
 ITC Sun feast
 HUL
 PATANJALI
 Others
Q.5) Which Brand of instant noodles are sold more in your store?
 Nestle
 ITC Sun Feast
 HUL
 PATANJALI
 Others
Q.6) which brands noodles you prefer to stock more?
 Nestle
 HUL
 ITC Sun Feast
 PATANJALI
 Others
Q.7) how often does the Distributor Visits your shop in a week?
 Once in a week
 Twice in a week
 Thrice in a week
Q.8) From above brands which distributor deliver product on time?

 Nestle
 ITC Sun Feast
 HUL
 PATANJALI
 Others
Q.9) which company gives product replacement if product is expired or damaged?

 YES
 No
Q.10) Which Age Group are more respondent of instant noodles?

Age Group Percentage

7-15
16-20
21-30
31-50
51 & above

43
Q.11) which instant noodles brands satisfied more?
 Nestle
 ITC Sun Feast
 HUL
 PATANJALI
 Others

Q.12) Are you selling PATANAJLI Instant noodles?

 Yes
 No

Q.13) which flavor PATANJALI Noodles are sold more?

 Classic
 Chatpata
 Vegetables
 Dal Tadka