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Irate Distributor - SDM Batch 3 - Group 7
Irate Distributor - SDM Batch 3 - Group 7
The Question of
Profitability
By Group 7
INTRODUCTION
• Subsidiary of NutriPack ltd, a global • Retailing in India is one of the pillars of its economy
US based food company • It accounts for about 10 percent of India’s GDP
• Established in 1994 • India is one of the fastest growing retail markets in
• Headquartered in Gurgaon the world, with 1.2 billion people.
• By 2010, Brand’s turnover had • FMCG is the Fourth Largest sector in the India
reached 7.5 Billion Economy
• Product Portfolio: NutriPower, • Total Market size of USD 13.1 Billion in 2012
NutriJams, Glucolin and
HoneyBeez 2
1
Retail Trade Background
& Situational Analysis
3
INDIAN RETAIL TRADE - BACKGROUND
Nutripack
Ltd
Distributor Sub
Distributor
Wholesaler
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2
Basis for Selecting
Jalgaon district for
Expansion
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JALGAON FOR EXPANSION
India’s Tier 2 & 3 cities were developing and about to compete with metropolitans
Kumar focussed on district specific reports showing untapped potential in the region
Jalgaon being a major agricultural centre and a feeder market for surrounding villages
Existing partnership with Sachin Agency, who were the largest distributor in central
Maharashtra
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3
Perspectives of Kumar &
Mandore
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KUMAR’s PERSPECTIVE
Low Retail
• 750 outlets – competitors : 1800
Coverage
• Interior retails complained about credit period,
No Credit Period
schemes & discounts not uniform
Mandore • Not tapping potential market
Decrease in
• Of NutriJams & NutriPower in last 4 years
Market Share
• Needed more efforts from intermediaries especially in
More Efforts
Jalgaon region
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MANDORE’s PERSPECTIVE
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4
Arguments for Mandore
to Invest
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MARKET SCOPE OF NUTRI POWER
▰ Availability of Nutri Power has decreased from 50.87% (i.e. available in only 680
outlets out of total 1337 outlets) in 2009 to 45.90% (i.e. available in only 729 outlets
out of total 1588 outlets) in 2011
▰ Nutripower covers 45.9% of total outlets whereas Healthy is covering 89.3% of the
outlets
▰ Increase in infrastructure and investment will lead to tapping of almost 50% untapped
market in the Nutri Power product line
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MARKET SCOPE OF NUTRI JAM
▰ Availability of Nutri Jam has decreased from 34.51% (i.e. available in only 369 outlets
out of total 1069 outlets) in 2009 to 26.92% (i.e. available in only 342 outlets out of
total 1270 outlets) in 2011.
▰ Jams Nutrijam is covers 26.9% of total outlets whereas Mazaa covers 73.8% of the
outlets
▰ Due to small infrastructure and inefficiency in production to cater large number of
outlets to keep their product, the company is losing its market share to others
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BENEFITS FOR MANDORE
▰ Increase Sachin Agency’s investment in NutriPack India as its potential is very high
▰ With a small investment, the considerable benefits are much higher
▰ The reach of the products should be reached to make it comparable to the
competitors
▰ With an increase in reach and improvement in infrastructure, NutriPack has the
potential to become the MARKET LEADER in many sectors in which it is just a
challenger
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Recommendation to
Sachin Agency
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RECOMMENDATION
Uniform schemes and cash discounts across all outlets of similar value.
Because of low margin product, sales should be increased by giving more offers to customers
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THANKS!
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