SIP Report
SIP Report
Report on
2021-2023
Faculty Mentor:
Dr. Shailesh PandeySubmitted By: Ms. Arunika Gunjaal
Roll No.:
JI/2021-23/0020
Batch 2021-2023
DECLARATION BY THE STUDENT
I further declare that to the best of my knowledge the project does not contain
any part of any work which has been submitted for any other project either in
this institute or in any other without proper citation.
Place: Indore
The purpose of writing this document was to provide the following information. The present
condition of India's FMCG industry is addressed, as well as Haldirams Foods International
Pvt. Ltd. goals and vision for the future, as well as the Indian market. The study includes
terminology specific to the fast-moving consumer goods sector.
The report has been made specific to the business development of Haldiram HPO outlets in
innovative concepts where various terminologies relevant to Segmentation and channel
development have been introduced and explained.
All necessary and relevant data gathered through a physical internship has been accumulated
in the report, and necessary recommendations and suggestions on the basis of the analysis
have been given in the report.
Acknowledgement
To begin, I would like to thank my Faculty Mentor, Dr. Shailesh Pandey Si, for his
tremendous assistance, inspiration, and direction. Mr. Abhishek Singh and Ms. Shivani
Gaikwad, my CMC Mentor, merits my sincerest gratitude for his unwavering assistance,
knowledge, and direction.
Mr. Rishi Ramchandani have given me with a hospitable environment in which to obtain
direct experience and knowledge through this project.
I am obliged to show my appreciation for the motivation and support I received from Jaipuria
Institute of Management, Indore, and the CMC team, I will have failed to fulfil my
obligation.
Lastly, but by no means least, I wish to express my gratitude for my parents' spiritual and
emotional support.
Table of Content
CHAPTER 1: FMCG INTRODUCTION
1. Introduction to FMCG
2. Overview Of the industry
3. Scenario of FMCG in India
4. Market segment of FMCG
5. PEST analysis of FMCG
6. FMCG industry in India: the way forward
Although FMCG products are sold in enormous volumes, producers have lower profit
margins than retailers. However, because there will be a lot of demand for the products, the
overall profit will be sufficient to keep the company afloat.
• Low cost
• Little consumer participation
• Repeat business
• Large numbers
• Easily accessible
• High stock turnover
There is never a boring moment in the FMCG sector because it constantly changes to reflect
the times and environment. FMCG firms are adaptable in nature. Its basic evolution is caused
by a shift in consumer demand that makes them more compelled to purchase that goods. It
keeps creating various wants for consumer. The FMCG travels quickly from the time it is
purchased in the store to the time the shelves are empty to the time the next stock is refilled,
which is another factor.
The loyalty of a company's employees and customers determines its sustainability, thus
FMCG firms make an effort to retain both. In order to thrive and generate profit, FMCG
places a high emphasis on client retention. Additionally, it places a strong emphasis on
maintaining a happy workplace because a happy workforce means a happy clientele.
FMCG companies are resilient to the recession: FMCG companies are least impacted by
economic fluctuations, regardless of their magnitude. Since FMCG products are their
fundamental needs and necessary commodities, consumers must purchase them.
FMCG businesses place a strong emphasis on the two "B"s: Bigger and better. This sector is
expanding as more companies enter the market, creating fierce rivalry. Additionally, FMCG
businesses always concentrate on cutting-edge technologies and concepts to provide their
clients superior products.
The ultimate goal of FMCG is to satisfy consumer demand. This sector has been meeting
consumers' basic requirements and desires. It prioritizes the needs of the consumer and makes
every effort to meet their demands and fulfil their expectations.
India is one of the nations with a sizable population in the world, and its GDP is anticipated
to rise in the near future. India has been in the spotlight for many FMCG companies
precisely because of this issue. However, due to the extremely low purchasing power of
Indians and the government's support of small-scale industries, there were few investments
made in the FMCG sector from the 1950s to the 1980s. Only Hindustan Unilever Limited,
formerly known as Hindustan Lever Limited, was able to survive in this atmosphere. This
multinational corporation's manufacturing hub was in India.
Prior to that, HUL had been the dominant force. They were conducting their business in an
elegant way. Although consumers had few options, the introduction of Nirma detergent
powder brought about a transformation in the FMCG sector as a whole. This corporation
prioritized "value for money" strategies and made detergent cheap for low income groups,
which significantly altered Indians' way of life. This allowed numerous Indian FMCG
companies to enter the market.
FMCG items were no longer seen as exclusive goods intended just for the wealthy. It
was viewed more as an everyday necessity for the general public at a reasonable price.
For many years, the nation had a large number of foreign FMCG firms, but in the last ten
years, numerous indigenous FMCG companies have entered the market, including Godrej,
Dabur, Nirma, Emami, CavinKare, and others.
The FMCG industry is currently the fourth largest sector of the Indian economy and one of
the major contributors to the GDP of India. Toilet paper, toothpaste, detergents, shampoos,
shaving supplies, shoe polish, packaged foods, and household goods top the list of most often
used products. In terms of revenue, rural India makes up around 2 trillion of this market.
Household
Care
FMC Personal
Care
G
Food and
Beverages
FOOD AND BEVERAGES
The food and beverage industry ranks fifth in India in terms of output, expansion, domestic
use, and foreign sales. The packaged food segment is predicted to develop at 9% yearly to
become a 6-lakh crore business by the end of 2030. It is predicted that the ready-to-drink tea
and coffee market would grow to 2200 crore over the following three years. The overall soft
drink that comprises both carbonated beverages and juices industry is predicted to hit USD 1
billion.
The following pie chart breaks down the Indian consumer market into its component parts
based on the type of fast-moving consumer goods they purchase.
Baby Care 2%
Fabric Care 12%
Food Products 43%
Hair Care 8%
Household 4%
OTC Products 4%
Others 5%
Personal Care 22%
In order to sway consumers, many businesses resort to aggressive advertising, marketing,
packaging, and pricing strategies. This industry is expanding in both suburban and city
settings. Many multinational consumer-goods companies (FCCGs) are considering expanding
into the Indian market.
A rise in both the country's GDP per capita and its population are the two most important
elements driving expansion in India's fast-moving consumer goods (FMCG) industry.
Growth Pattern
50
45 44.9
41.1
40
34.8
Revenue ( billions)
3530.2
30
25 24.2
21.3
20 17.8
15.7
15
10
5
0
2006200720082009201020112012 2013
Sales of fast-moving consumer goods (FMCG) have risen steadily since 2006, from $15.8
billion to $17.8 billion, and beyond. 2013 saw revenue of $44.9 billion, an all-time high. The
fast moving consumer goods (FMCG) industry in India expanded at a CAGR of 16.2%
between 2006 and 2013. Given its recent financial performance and projected expansion,
India's fast-moving consumer goods sector has risen to fourth place among the country's most
lucrative industries. This is due to a number of factors, including rising consumer demand,
shifting lifestyle preferences, and robust disposable income. As a result of rising inflation and
slowed GDP growth, however, 2012's rate of growth was more moderate at 9.24%.
Problems of FMCG Fast Moving Consumer Goods (FMCG) are products that are sold quickly
at relatively low cost. Though the absolute profit made from FMCG products is relatively small,
they generally sell in large quantities, so the cumulative profit on such products can be large.
Examples of FMCG generally include a wide range of frequently purchased consumer products such
as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as
other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods.
Fast Moving Consumer Goods companies matured in the 1960s and the massive competition that
followed forced the companies to consolidate and find new ways of making money.
They did this by learning to segment markets into groups of customers with common needs and
buying motives, and then developing solutions that appealed particularly strongly to those segments.
This was hard work but it paid off, smaller sub markets (segments) were penetrated more deeply and
at premium prices.
Marketers had made a major discovery in the process of knowing how to grow revenues from
saturated markets. Today, the situation is somewhat different. If the marketers were segmenting
effectively, their urgent moves into new areas of sales growth would not be necessary.
Tax Codes
The tax system is rather intricate, and indirect taxes are quite expensive. Regarding
consistency, there is also a lack of it. Likewise, octroi levels are quite high. The tax structure
is unstable and there is an admission fee.
Policy-based framework
Investment in the retail sector (both single- and multi-brand), changes to the statutory
minimum price (SMP) of commodities, and the prioritisation of certain industrial sectors all
require government approval.
Economical
• Inflation
The power of money to buy things is drastically reduced by inflationary forces. Consumers'
purchasing power is also significantly affected by inflation. The effect on capital
expenditures is obvious.
Personal Expenditures
Private consumption makes up a sizable chunk of India's economy (61%), which is
significantly more than the global average.
• Urbanization
Seventy percent of India's population calls the country's rural areas home. Furthermore, as the
idea of urbanization spreads, more and more individuals are being introduced to cutting-edge
goods and services. In addition, consumers are increasingly favoring pre-packaged and
recognizable brands.
Social
Indian fast-moving consumer goods companies have begun to focus on high-end offerings in
response to the country's increasingly affluent middle class. The economy and culture are
shifting at breakneck speed right now. People in the past were more set in their ways and
resistant to change; for example, once they adopted a particular brand of toothpaste, they
were unlikely to switch brands. In today's society, it's common for some couples to rely on
only one income while others rely on two. They each lead distinctly different lives. The
extent to which they can spend varies widely.
Technology
Organization resource planning (such as SAP and the like. ), Supply Chain Optimization, and
Business Intelligence solutions can assist FMCG companies integrate business operations
across the enterprise, suppliers, and customers.
The fast-moving consumer goods (FMCG) industry in India has been expanding at an annual
rate of 11% during the previous few years. A year-over-year increase of double digits
suggests a rising demand from customers. The industry as a whole has increased by 17%
during the past five years. Significant expansion in India's fast-moving consumer goods
industry.
Retailers of fast-moving consumer goods (FMCG) know they have to pay attention to shifts
in consumer preferences, and they are making great efforts to do so. They hope that by taking
this action, they would rise to the top of their industry and surpass their rivals. Due of this, it's
clear that the industry will continue to expand.
Additionally, 70% of India's population and 50% of the entire FMCG market are located in
rural areas. There are over 400 million people living and working in rural areas today.
Generally speaking, the purchasing power of rural Indians is lower than that of their urban
counterparts. Despite this, the FMCG sector is promising, and shoppers are more interested in
premium items like bottled water.
In the past decade or so, people's habits of consumption have shifted dramatically. The
shopper wants to broaden his or her horizons. Consumers want items that do more, last
longer, and are of higher quality. Consumers' wants are quickly becoming more important
than their needs. The fast-moving consumer goods (FMCG) industry in India has had rapid
expansion over the past decade, and it will continue to benefit from a number of factors that
will continue to fuel its future success.
CONCLUSION
The fast-moving consumer goods market is thriving in India. Since its inception, this sector's
expansion has been steady and steady. The state of the economy, politics, and society will
have less of an impact on this industry. This is because people will always need to buy food,
water, and other necessities, regardless of the economy. As things are right now, the average
Indian citizen's standard of living has improved as well. Having graduated to the middle
class, they now have more disposable income. The fast-moving consumer goods industry in
India has benefited from this.
Consumers now have more options to pick from as a result of increased competition in the
fast- moving consumer goods (FMCG) markets. In addition to making people's lives easier,
this has made FMCG buying more enjoyable.
In India, the FMCG industry has less entry and exit obstacles, but sustainability is a major
issue. Due to the abundance of rival businesses, making it difficult to thrive in this field.
Building consumer appreciation and loyalty to your brand are essential to your continued
success. The success of an FMCG firm depends on the company's ability to anticipate
consumer needs and deliver appropriate goods at the correct time.
Long-term brand loyalty is a challenge for the fast-moving consumer goods market since
people may be loyal in the short-term. This shift can happen for a variety of reasons,
including a shift in taste and preference, the introduction of new products with improved
features or higher prices, increased accessibility, higher incomes, or all of the above. FMCG
should succeed in all of these areas to retain customers both now and in the future.
Chapter 2
Details of organization
Introduction
As a part of agreed CSR philosophy, the company undertook the following activities
in the vicinity of its establishments:
a. Distributed note books and school bags.
b. Distributed computer desktops to various schools for educational purpose.
c. Organized medical camps in villages of Gujarat and Maharashtra.
d. We have established bore wells and solar pumps for extracting safe drinking water
in villages at Maharashtra. This has helped locals to get water at their respective
homes.
e. Supplied submersible motor pumps to provide power to RO plants.
f. We have through other NGOs and established trusts, organized various
educational programs to educate people on various matters.
17. Awards/ Achievements:
Recently we got “Vocational Excellence Award” by Rotary Club.
Product List
Swot Analysis of Haldiram HPO Tuck shop and Vending Machine
Strength: The commencement of the concept of opening tuck shop at IT- Campuses
was itself a first mover advantage as none of the competitors of Haldiram has an approach
towards this. The brand itself is a trust to consumers and can serve better as it’s the first
preference for consumers.
Weakness: the only weakness this concept faces as there are already local canteens
installed on a contract basis in the corporate campuses which can prohibit the entry of
HPO Tuck Shop.
Threat: Certain organizations such as famous local sweet and savory shop may get to
serve the canteens of these corporate campuses at a low price.
Strength: Fewer players in the market segment have acquired the business in the
natural places such as national parks, sanctuaries, green garden hubs. Therefore, the tiger
woods have the competitive advantage.
Weakness: The tiger woods is only focusing the Maharashtra areas where already the
leaders of hospitality industry has acquired the business.
Opportunity: the brand name will surely be a key player in attracting the opportunity
as it is prominent in western and southern region where maximum national parks and
sanctuaries are there. The activities included are youthful and focused on involvement of
families.
Threat: The concept of Haldiram holiday homes has been a strategic move to attain
success. But the unorganized market in this segment may come out as a threat.
VENDING MACHINE DIVISION
MARKET EXPANSION
The Machines would only be functional in locations that were open and running with
substantial foot traffic under lockdown and covid restrictions.
The most notable locations included hospitals, banks, manufacturing facilities, and
pharmacies.
With a team of four, we compiled and narrowed down a list of important hospitals in the
Nagpur region with a moderate to substantial number of patients.
Over the course of two to three weeks, 72 hospitals, four companies, and countless
pharmacies were visited daily in order to install vending machines on their premises.
For swift approval and installation of the machine, a streamlined proposal was created.
Rent and deposit - A rental proposal of 1,000 rupees per month with no security
deposit for the installed machine.
A 7-day trial period for testing the unit, which ultimately assures machine
installation regardless.
A development of a region-specific distributor to expedite problem solutions.
The freedom to choose products from a predetermined list in vending machines.
Coupons for hospital/organization personnel.
In response to this idea, the majority or the majority of hospitals visited provided
positive feedback. There were still several prominent hospitals where the request was
declined on account of –
Due to branding on machines, hospitals implicitly endorse and market Haldiram at their
facilities.
I got the chance to find a solution for the specified problems, and an alternative
breakthrough was established for such instances.
Hospitals with working canteens were targeted; those unwilling to install vending
machines on their own were approached; and canteen operators were presented
with the vending machine concept.
This was a lucrative offer for the owners of the cafeteria, as it involved refilling
the vending machines themselves and maintaining the profit margins on the
products sold.
Chapter 3
Project Details:
Title: Business & channel development for HPO- Tuck Shops, Haldiram Holiday Homes
Area of the Project: B2B segemntation
I have prepared the business proposal of Haldiram HPO Tuck Shop and Anytime
Haldiram with proper dimension of the space and offerings of the shop to the
employees of the corporates.
A whole research part has been done before designing the proposal as in- who’s the
competitor, how they are serving the canteens of the firms, how much area of the
canteen they have acquired and at what compliances from the firm.
I have to contact the leads given by the industry mentor and note down
the appointments of the companies.
On the date of appointment, I need to carry the required documents and business
proposal and arrange the meeting in the conference for the client as well as industry
mentor.
In the meeting certain points have taken in notice such as: a) compliances required by
the firm, b) space in the campus, c) discounts for the employees, d) refilling and
security.
I have to design the presentation and focus more in the map area and compliance’s
part.
Description of the project in brief (Haldiram Tiger Woods
Project)
This was a new concept of the organization as Haldiram wishes to enter the market
and create a revenue factor and serve the customer by giving them the experience
close to natural habitat.
Activities planned were of sports (cricket, volleyball, table tennis, climbing rope, pool
sport), jungle safari, trip travelling, etc.
I was assigned to propose marketing strategies for the Haldiram Holiday Homes.
Other Projects:
I was assigned a task to fill the e-tender of Airport Authority of India of Raipur where
I was carefully reading the e-tender and highlighting the important documents and
procedures required to fill the tender on due date.
Certain documents that were crucial for filling the E-Tender:
Annexure A- V (Draft Licence Agreement)
Appendix 2 of Annexure A (special terms and conditions)
Appendix 3&4 of Annexure A of V
Annexure B of V (Power of attorney/ form 12)
Annexure C of V (Acceptance letter)
Annexure D of V (Details Of Bidder)
Annexure E of V (turnover certificate issued by CA)
Annexure F of V (Letter of undertaking)
Annexure G of V (Declaration)
Annexure H of V (Realtives of AAI)
Annexure I of V (NOC by Haldiram)
Annexure J of V (Beneficiary details for RTGS Fund Transfer)
Annexure K of V (Form of bank agreement)
Annexure K of V(1) ( bank details)
Annexure L of V (Checklist of documents)
Findings
B2B Customer Segmentation
There is a more nuanced decision-making structure in the B2B market: While one
individual often handles the shopping for necessities like food, clothing, and personal things,
the entire family normally chips in for the larger, more expensive purchases. While
paperclips and other low-value, low-risk goods may be easy decisions for firms, the decision-
making unit is much more involved. The procurement of a piece of plant equipment may
involve technical experts, purchasing experts, board members, production managers and
health and safety specialists, each of these parties having their own set of (not always visible)
goals.
Channel Development:
The work of tender documentation and filing it was strategized by the Haldiram Organization
is to create channel for generating profits and revenue.
Indian airports have come a long way since they catered solely to the flying public. In
India's major metropolitan areas, airport infrastructure has experienced a quantum rise with
the introduction of private carriers. The airport terminals of metropolitan areas have caught
up with global airports in terms of 'look and feel,' as well as the trend of marketing airports
as significant retail hubs, as a result of the implementation of international standards of
infrastructure in the past several years.
Today, airports in major cities such as Mumbai, New Delhi, Bangalore, and Hyderabad have
been renovated to become more dynamic, active, and effervescent destinations. Small, dreary
airport retail sections have been transformed into luxurious shopping lounges, and as a result,
their sales are surpassing those of conventional retail markets and high street businesses.
Thus, airport retailing in India is primed for significant expansion.
Airports in India are becoming one of the most potential sectors for retail development in a
short period of time. Almost every premium brand in various categories is eager to have a
presence in the airport's retail zone at now. As a result, every type of merchant is active in
airport retailing in order to meet the needs of passengers; there is something for everyone
to enjoy in an airport today, from writing instruments to cell phones and leather
accessories.
Product categories in major airports include a variety of luggage brands, garments, and
accessories, in addition to other categories, which demonstrates significant customer
sensitivity and appeal. Other popular areas include specialty foods and destination souvenirs.
On the retail model front, the concept of anchor stores, similar to those seen in shopping
malls, is anticipated to draw everyday crowds. This aspect is required to generate a critical
mass of shoppers, influencing the whole retail landscape in airports.
Chapter 4
Learning and recommendations
Learning:
Recommendations:
The concepts are beautiful but it was focussed and limited to only IT corporates,
therefore more such sectors should be covered for Haldiram tuck shop life
education sector, corporate offices of manufacturing units.