A Study of Market Policies and Distribution Channels of Mosquito Coil in Nalbari District.”
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Submitted By mehdihassan625 Words 8021 Pages 33
PREFACE
Projects are an indispensable part of any kind of formal education. They help us to have a practical exposure as well as better outlook of the subject, which we are studying. In a professional course like PGDBM, the students are equipped with strong theoretical knowledge about the business operations and the time-tested methods of running a successful business. To make this theoretical knowledge stronger, the students are assigned certain projects in various organizations to get an idea of the practical working styles. I was assigned to work in Eveready Industries India Limited, Guwahati. The topic of study was “A study of market policies and Distribution Channels of Mosquito coil in Nalbari District ”. I worked with the Ashish Agency, Distributor (Van Operator) of Eveready situated in Nalbari Town. The Project commenced from the 1st May of 2006 to 30th June 2006. In order to make the data and findings easily understandable, efforts have been made to present the information in a simplified, lucid and organized manner. Wherever possible, tables and figures have been incorporated. Suggestions have been made on the basis of findings herein. It gives me immense practical exposure to the practical working patterns and the environment. I will be satisfied if the organization gets benefit from the study and the findings.
4. LIMITATION:
1. The survey was limited to some of the routes covered by the van of company. It also not possible to visit every retailers or wholesalers present in each routes as the van used to go to very interior places and where time is a major constraint. 2. Most of the dealers/retailers/wholesalers have an unprofessional attitude and were not willing provide information that were needed.. 3. Since the report is based on primary data and personal interview, occurrence of personal bias ruled out. For respondents bias make take place if one tries to reflect his personality in a better way. 4. The researcher was also looking for determining the market size of different coils but it has not been possible due to non response from the transporters, dealers and non possibility of collecting the sales information from each route. 5. The time allotted for the study was only two months, which was not sufficient for the project. Due to these limitations, the conclusions which have been drawn are subject to criticisms at every stage of its analysis and presentation. This report may not provide the best possible picture of the market scenario and the work done here can always be made better and improved.
ACKNOWLEDGEMENT
This report is the result of contribution, Guidance and Co-operation received from a number of people, both implicitly and explicitly. Never can this report be claimed as an individual effort and no amount of words written will be enough and adequate to acknowledge all the people who have offered their help and support preparing this report
At the very outset with due respect I would like to take the opportunity to sincerely thank Mr.Jasim Akhtar Hussain Khanikar, ASM, my organizational guide, for affording his valuable time and constant guidance in the tenure of my summer training in Eveready Industries India Limited, Guwahati. With deep sense of gratitude, I would offer my sincere thanks to Mr. Pratul Kalita and G.K.Sarma, Assam Institute of Management for their guidance during the period of my study. I would also like to extend my sincere thanks to Mr.A.N. Chatterge, Branch Manager for all the facilities provided by him to undergo the training in Eveready Industries India Limited, Guwahati. My sincere gratitude also goes to Dr.R.P.Kakoty, faculty Assam Institute of Management providing the valuable knowledge regarding the study. If I do not mention about the owner of the Ashish Agency, Distributor of Eveready of Nalbari Town and it’s people with whom I worked then it will be very much unfair to them. At last I would like to thanks my entire friend circle and the people who have helped me in completion of the project.
Mehdi Hassan Assam Institute of Management
EXECUTIVE SUMMARY
Project Title : “A study of market policies and Distribution
Channels of Mosquito coil in Nalbari District.”
Duration : The duration of the project was from 1st May to 30th June 2006.
Under the Guidance of:
Organizational Guide :.Mr.Jasim Akhtar Hussain Khanikar Area Sales Manager Eveready Industries India Limited Guwahati Branch
Faculty Guide :. Mr. G. K. Sharma. Mr. Pratul Kalita
OBJECTIVE OF STUDY: Objective of the study are
1. To find out the existing brands of mosquito coils. 2. To determine the different rates associated with major brands. 3. To find out the ongoing market policies of different brands. 4. To look for the distribution channel of major brands. 5. To make a SWOT analysis of Poweron.
.
Research Methodology
The research methodology undertaken deals with the objectives of the study.
The methodology adopted is descriptive in nature. Following are the methodologies that were adopted. 1. Different routes were visited via the company van along with the Van Sales Man (VSM). 2. In each route retailers and wholesalers were visited to collect information regarding available coils, their MRPs, cost price, purchase source. 2. Information from Distributors were found. 3. A gap analysis is done to find out the depth of penetration of Poweron.
Major Findings
➢ Maxo is mostly available in the retailers and wholesalers of the visited routes. ➢ Purchasing cost of Maxo is lowest among the others in every root. ➢ Margin for Dealer is highest for Poweron ie 5%. ➢ Margin for Wholesalers and Retailers is highest for Maxo and it is lowest incase of Poweron. ➢ Eveready has van service to the interior places of the district. In case of other coils distributors of Mortein of Nalbari provide van service by other distributor’s van if more order is placed by distant customer. Apart from this Mortein distributor of Tihu also some time provide van distribution by other agency’s van to meet major orders. ➢ Schemes for most of the players discounted in monetary terms. ➢ Maxo have a scheme for consumers ie. 40% extra with each pack which provide less margin to the reailers as compared to the without schemes ones.
4 ABOUT THE ORGANISATION
Eveready Industries India Limited is one of India’s most reputed FMCG companies. The company has a portfolio comprising dry cell batteries (carbon zinc batteries, rechargeable batteries and alkaline batteries), flashlights (torches) and packet tea. Eveready is India’s largest selling brand of dry cell batteries and flashlights (torches), with dominant market shares of about 46% and 85% respectively. Eveready is the world’s third largest producer of carbon zinc batteries, selling more than a billion units a year. Its carbon zinc batteries dominate the Indian market with a complete range for all equipment types. The turnover in the financial year 2004-05 for Eveready Industries India Limited. was approx. US $ 150 million.
The Eveready brand is synonymous with power, with a durable franchise that has spanned over a century.
Eveready is celebrating its centenary year in India in 2005.
The new tagline “The Next Century of Power” affirms Eveready’s commitment to being technology leaders well into the future, evolving with consumers to meet their changing needs.
From small beginnings with an import consignment in 1905 of Rs 500, Eveready today dominates the Indian market and stands for portable power and light to millions of consumers.
As a brand, the War cry [pic]promises empowerment to young consumers in urban India.
The iconic [pic]symbol similarly stands for the assurance of power to rural consumers.
Eveready’s packet tea business under the Brand name, Greendale, is also a fast growing business and poised for greater gains in market share.
VISSION
For over a century, our corporation has been a partner to consumers with our expertise in portable power and light.
Today, we endeavour to be the perfect Companion to consumers by providing value-for-money brands with
Tangible Differentiation in quality
Every day, we seek
Consumer Proximity to ensure the enjoyment of better living.
Our core competence will be based on these three core values for the total synergy and future profitable growth of our corporation
1.2 Brand Eveready Ask any Indian consumer to name a Battery and the first brand that comes to mind is Eveready. Not just among batteries, Eveready is a powerful brand across categories. In the Confederation of Indian Industry (CII)’s ‘Brand of the year’ 2005 shortlist, Eveready made the top ten finalists, along with brands like Nokia, HP, Titan, Dabur and five Lever brands.
The Economic Times’ Brand Equity survey of Brands by Sales, April 2004, put Eveready at no. 22 across brands in all categories
As per AC Nielsen, Eveready stood 7th among all FMCG companies in terms of growth in the last financial year, 2004-05. Eveready has top-of-mind and Total Awareness scores that are almost unheard-of in Industry, and of course far above the nearest competitor’s. Scores in the CII survey done by the independent brand consultancy Vertebrands, show Eveready scoring a near-perfect 99% total awareness among Target Consumers.
In the study done by Market Research Agency, Mode, Eveready enjoys an impressive 73.4 per cent mind share among the large (D size) battery users. In the pencil (AA) segment, the corresponding mind share is 62.4 per cent.
As per Vertebrands’ survey, on a 10-point scale, Eveready scored 8 on popularity and 7.7 on contemporariness. 41% of consumers called it “The Only Brand for Me”
These scores translate into market shares of 85% in torches and 46% in batteries. Eveready has also invested in building one of the deepest and widest distribution networks in the country through the following initiatives:
*A growing family of nearly 4000 distributors. *A team of 1000 exclusive vans servicing retailer needs by covering the length and breadth of India. *Eveready reaches 800000 outlets directly and 3.1 million outlets total, having grown by 36% over the past year (AC Nielsen) *Eveready reaches around 80 per cent of all battery selling retail outlets in India (MODE)
Eveready is now not just expanding its distribution network; it is also customizing it in line with the growing preference to buy most products in rural malls and urban large-format hypermarkets.
Eveready’s strength is the result of a continuous and well-orchestrated brand development strategy that maximizes the value from each consumer touch-point.
[pic]is the iconic urban face of Eveready. The advertising byline of the popular Red series of batteries, it is today symbolic of the empowered urban lifestyle that the brand reflects. The original, path-breaking campaign won as many as 11 advertising awards.
For the pan-Indian rural audience, the ‘Safed Eveready’: India’s No. 1 imagery reflects the reliability and trust embodied in the basic Eveready white batteries.
The value-for-money Recharge range satiates the ever-increasing needs of modern urban devices.
In Flashlights, the Jeevan Sathi range with its enduring assurance of lifelong companionship is the perfect foil to the urban functionality of the plastic range.
In 2004, Eveready took on as Brand Ambassador the legendary Mr. Amitabh Bachchan. Standing for timelessness, trust and reliability, Mr. Bachchan’s image complements Eveready’s. An inimitable symbol of empowerment, he has added his unique flair to the brand experience. As Eveready embarks on the next century of power, the new logo salutes the one mnemonic, which has been the face of our brand for decades, [pic]. A symbol of world-class quality, the cat promises to drive brand Eveready to greater heights of excellence in the years to come.
1.3 LAST 100 YEARS OF EVEREADY
Einstein publishes 4 papers on relativity and photoelectric effect. Nearer home Bengal was partitioned and the Minto Morley Reforms were initiated. The first Eveready battery came to the country in 1905.The dry cell batteries were imported from USA and its value was around Rs.500. It took 8 years to double this figure. Any Rand, the author and Christian Dior, the aesthetician were born at the same time. First World war broke out in 1914. At the same time seeds for Indian industry were sown with the first steel plant being established. In India several events shook the country. Non Cooperation Movement picked up momentum while the Jalianwala Bagh Massacre Sam Rabindra Nath Tagore returning his Knighthood. Amidst this political uncertainty, one company had the vision to look upon India as manufacturing center and not just a market for imported products. 1926: The Eveready(India) company set up the first factory at Canal road, Kolkata, with an installed annual capacity of 6 million cells which increased to 16 million cells in 1935.
1931: Talkie era begins in the world of cinema.
1932: India’s first domestic air service begins.
1934: The Eveready Company (India) Limited was incorporated as a private company.
1938: United Battery Distributors Limited was formed and appointed as sole selling agent. 1939: India’s first modern battery plant established at Camperdown, Kolkata with an installed annual capacity of 40 million cells.
1939: Onset of Second World War. The greater portion of Camperdown’s output was directed to meet defense needs.
1942: United Battery Distributors Ltd. Merged with the Eveready Company India Limited and was renamed National Carbon Company (India) Limited.
1947: India keeps her tryst with destiny and gains independence.
1952: Computer technology comes into India. Second battery plant is established in Chennai. Present capacity 43 million/year.
1953: First Indian-made radio batteries released by the company.
1956: National Carbon (India) Limited is converted to a public company and offers 8 lakh shares to the Indian public. A Zinc rolling mill, the first in India, is completed at Kolkata, present capacity of which is 10000 MT/year.
1958: The Flashlight plant goes into production at Lucknow. Present capacity 12 million/year. The first aluminum torch produced. 1959: The company name changes to Union Carbide India Limited.
1963: Indigenous photo engraving plate developed, that soon became an industry standard.
1965: The Carbon Products Company commenced production of cinema carbons and midget electrodes.
1967: Third battery plant is set up in Hyderabad. Present capacity is 240 million/year. Jeevan Sathi Flashlight launched.
1975: Plant at Taratolla, Kolkata was established. Present capacity is 260 million/year. Commander Flashlight launched.
1983: BCF, an Electrode manufacturing plant set up in Hyderabad. Present capacity 600 million/year.
1984: Red Flash torch launched.
1988: Mini might torch launched.
1991: Highly successful Give Me Red campaign started.
1994: Packet tea business starts with the launch of “Premium Gold”. Chuapara factory for packing tea established.
1995: The Company becomes a part of the Williamson Magor Group and is renamed as Eveready Industries India Ltd.
1996: Mc. Leod Russel (India) Ltd. merges with, and bulk tea business brought into EIIL. Two new brands of packet tea launched- Tez and Jaago.
1999: New battery plant established in Noida. Present capacity 336 million/year. Launch of Rechargeable batteries. Launch of export brand Lava. 2004: Amitabh Bachchan appointed as the Brand Ambassador. 2004: Demerger of Company into two separate entities: FMCG and Bulk Tea. Eveready Industries India Limited retains FMCG division with batteries, flashlights and packet tea.
1.4 BRANCH STRUCTURE:
The organizational structure of Eveready Industries India Limited, Guwahati is as follows:-
Each Sales Officer is responsible for carrying out sales activities, market development activities for generating sales in a particular territory.
There are altogether 9 territories.
1.5 Product Portfolio
Dry Cell Batteries
Carbon Zinc
Eveready Industries India Limited is the world’s third largest producer of Carbon Zinc batteries, selling over 1 billion batteries every year. Present in all segments of Dry cell batteries, Eveready holds the dominant market share in every segment.
The carbon zinc batteries are available in following categories: ➢ D – 950/1050/975/950D ➢ C – 1035 ➢ AA – 1015/915/1215 ➢ AAA - 1212
Rechargeable Batteries
Eveready Industries India Limited is the first entrant and the leading brand in the organized Rechargeable battery category. ‘Eveready Recharge’ batteries can be recharged up to a thousand times.
With its flagship 2100series, Eveready is providing the Indian consumer with the latest offering for Digital Cameras and other power-hungry applications. Eveready also provides Recharge batteries for cordless phones, ensuring their enduring performance.
Rechargeable Batteries for flashlights are categorized into: ➢ AABP4C (700 mAh) –NiCd ➢ AABPR (700 mAh) –NiCd ➢ AABP2 (700 mAh) –NiCd ➢ AABP4C (2100 SERIES) NiMH ➢ AABP2 (2100 SERIES) NiMH ➢ AAABP4C (600 mAh) – NiMH ➢ AAABP2 (600 mAh) - NiMH
Cordless Phone Batteries are classified into: ➢ T – 110 (NiCd) ➢ T – 109 (NiCd) ➢ T – 107 (NiCd)
Flash Lights
Industries India Limited is the largest manufacturer of flashlights in South Asia. Since pioneering the portable lighting revolution in the country a century ago, Eveready has enjoyed an uninterrupted leadership position in this segment. An unparalleled distribution network ensures that Eveready torches are always available within easy reach, wherever you are. From remote villages to the city heights, Eveready flashlights light up lives across the length and breadth of the country. The trusted ‘Jeevan Sathi’ brass torch, has been a constant companion for generations of Indians, is one of the most trusted brands in rural India, across product categories, enjoying an enviable 90% market share. In addition to Jeevan Sathi, Eveready also markets a comprehensive range of over 50 varieties of metal and plastic flashlights, comprising handy Homelites for general purpose use, a range of torches for Outdoor use, as well as trendy Personalites for personal use. In addition, Eveready also has a range of value for money rechargeable lights, targeted at the urban and semi urban consumers. The Eveready range of flashlights covers a wide price band of Rs 40/- to Rs 1275/-, to suit every need and every pocket. Available in a wide range of colors, shapes and sizes, Eveready torches are the obvious choice for millions of consumers from all walks of life.
In 1996 Eveready Industries India Limited, launched a range of packet teas under the Brand name Greendale.
Greendale teas come in four variants - Tez, Premium Gold, Jaago and Classic.
Within a short period Greendale has carved out a niche for itself in the packet tea industry of India and is growing rapidly in volumes and market share.
1.6 Eveready Work Culture
What differentiates Eveready from other corporations is the utilization of its human resources.
In today’s competitive world, Eveready has a stable and committed top management team, and focuses on attracting, retaining and nurturing talent at all levels. The environment encourages initiative, innovation, integrity and above all, a passion for success. Corporate objectives are imbued into the people who work with Eveready. With an emphasis on their specific responsibility and their role in the company’s larger scheme of things, Eveready encourages everyone to have a broad perspective as to where the company is heading.
The company has also emphasized the importance of succession planning to facilitate a seamless transition of leadership roles to the next level. Towards this end, high performers are being recognized and groomed to assume leadership positions.
1.7 Distribution and Supply Chain
Eveready has invested in building one of the deepest and widest distribution networks in India through the following initiatives:
* A growing family of nearly 4000 distributors. * A team of 1000 exclusive vans servicing retailer needs by covering the length and breadth of India.
*A consumer reach across around 80 per cent of all battery selling retail outlets in India.
Eveready is now not just expanding its distribution network; it is also customizing it in line with the growing preference to buy most products in rural malls and urban large-format hypermarkets.
Distributors of Eveready is classified into two types 1. Van operator (VO) 2. Retail Stockiest (RS)
Van operators supply products to the retailers and whole sellers of that particular place and surrounding areas. A VO can have two vans, one local for supplying to the nearby areas and other an upcountry van to cover the distant interior areas. They have a van program to visit the surrounding interior areas as well as for the local areas. Vans work for 26 days in a month. For the local van VO gets Rs.100 from the company and Rs.350 for the upcountry van. Both types of vans have one Van Sales Man (VSM) paid by the VOs themselves. Retail Stockist is responsible for supplying products of the company to that particular place. They collect orders from the wholesale or retail outlets and fulfill accordingly. RS supply their products by handcraft or rickshaw van. In North East there are 123 Retail Stockist and 33 Van operators are there.
The marketing channel of Eveready company is structured as follows:
2.1 Mosquito Mayhem
Mosquitoes are tiny creatures with deadly consequences. It is indeed a tough task to control mosquito population as they reproduce at a phenomenal speed of three times a year. The real threat of mosquitoes is in its dubious distinction of spreading killer diseases like Malaria, Dengue and Filariasis. In fact, in India, 40 million people fall prey to this tiny insect annually. Malaria is caused by the parasite Plasmodium, and spread by mosquitoes known as Anopheles Culicifacies. These species carry the malaria parasites Plasmodium Vivax and Plasmodium Falciparum, which together cause about 65 per cent of malaria causes. Malaria has now staged a dramatic comeback in India after its near eradication in the sixties. The latest count of malaria incidences is a shocking 2-3 million annually.
Dengue fever is an infectious disease caused by a group of viruses belonging to the genus Flavivirus. Female. Female Aides mosquitoes transmit these deadly viruses. In India Dengue fever is the leading cause of hospitalization and death among children. It is very unfortunate that out of 5,00,000 hospitalization causes of Dengue fever at least 2.5% of these die every year.
Three nematode species viz., Wuchereria Bancrofti, Brugia Malayi and Brugia Timori are the causative agents of Lymphatic Filariasis or Filariasis. The infective stage larvae are transmitted to human host trough mosquito bites. Within the human host. The infective stage larvae develop into adult worms in turn causing Lymphatic Filariasis.
Deeply concerned over this menace, the Government of India is undertaking widespread measures to eradicate Filariasis from our society for good.
2.2 Mosquito Repellent Market in India
Mosquito Repellent Market
.
Available Mosquito Repellents
[pic]
Zonal Shares of Mosquito Repellent Market
[pic]
2.3 Introducing POWERON
Eveready , the brand synonymous with power, spans a century of partnership with consumers. In its endeavour to be the perfect Companion to consumers, Eveready is now looking towards ‘ The Next Century of Powers’ to understand and meet the changing consumer needs. In seeking Consumer Proximity Eveready has identified the all-pervasive mosquito menace. Understanding consumer expectations, through surveys, Eveready is committed to providing powerful solutions with Tangible Differentiation in quality of product and packaging. Eveready Poweron, the new generation fast action mosquito coil brings a value added package to the loyal Eveready Consumer, Distributor and Retailer. Available in two variants Red 10-hour protection and Green 8-hour protection, the pleasantly fragrant coils repel mosquitoes powerfully and effectively, proving Poweron protection from malaria, dengue and filarial. For the coil Eveready has tied up with the Kolkata based Manaksia Ltd. Manaksia The Basant Kumar Agarwal – promoted company has specialized in making coils for brands like Reckitt & Benckiser’s Mortein and Jyothy Laboratory’s Maxo brand.
2.4 Nalbari District
Nalbari District is situated in between Kamrup and Barpeta District. For better administration, old Kamrup District has been divided into three Districts. Nalbari was declared a sub division of undivided Kamrup District in 1967. Rajendra Mohan Goswami, ACS was first Sub Divisional Officer in Nalbari. Nalbari Sub Division is formally declared as a District in 14th August, 1985.Shri Binod Kr. Piparsania, IAS, was first Deputy Commissioner in Nalbari. The Nalbari District is situated in between 26oN and 27o N latitude and falls in the east and the Barpeta District in the west. Accordingly to 2001 census, the populations of the District are 1138184. Again, according to size of population, the rank of the District stands at 10th (2001 census) as against 9th in 1991. The district has a total of 1110706 rural and 27478 urban populations as per 2001 census.
No. Of Occupied Residential Houses:
As per 1991 census, the rural areas of the District have a total of 160803 occupied residential houses with 160804 households. In respect of the urban area of the District, there are 4138 residential houses and 4138 households.
2.5 Eveready in Nalbari District:
In Nalbari district there are 3 distributors of Eveready. One is VO, which is situated in the Nalbari town, and the two RS are situated in Tihu and Barama.
VO -Ashish Agency (Nalbari Town)
RS - Kalita Brothers (Barama) Jatanlal Hirawat (Tihu)
3.1 NEED OF THE STUDY:
Poweron, the Eveready coil, recently launched in the market to increase the growth of the Company in its business with a view that it’s strong distribution network will be helpful to acquire a better market for Poweron specifically in the rural areas. It has not yet become a household item. The organization considers that Nalbari District has many rural interior areas, which are covered by the Distributor of Eveready situated in Nalbari town through its van. So, here arises some possibility for the organization to acquire a better market in the mentioned area. For this, it is necessary to know something more about the existing players - their distribution, market policies including different rates and promotional measures. So, here arises a need of study to collect all the relevant information from the dealers’ of the other as well as the organization’s; retailers, and wholesalers present in the different roots that are usually visited by the distributor’s van.
3.2 OBJECTIVE OF THE STUDY: Following are the objectives of the study 1. To find out the existing brands of mosquito coils. 2 To determine the different rates associated with major brands. 3. To find out the ongoing market policies of different brands. 4. To look for the distribution channel of major brands. 5. To make a SWOT analysis on Poweron.
3.3 SCOPE OF THE STUDY: The study was conducted on the market policies and distribution channels and only in some routes covered by the van of the distributor of Eveready in Nalbari Town. The researcher needed to visits outlets including wholesalers and retailers present in different routes to draw information on MRPs, purchasing cost, sources of purchase of the coils. Five distributors of major players (including two of Eveready) present within the Nalbari District were visited for collecting information regarding different price rates, service provided by them. There is scope that the study can be extended to the different parts of the region to have a better perspective of the given topic.
3.4 LIMITATIONS:
The study consists of the following limitations 6. The survey was limited to some of the routes covered by the van of the distributor. It also not possible to visit every retailers or wholesalers present in each route as the van used to go to very interior places and where time is a major constraint. 7. Most of the dealers/retailers/wholesalers have an unprofessional attitude and were not willing to provide information that was needed. 8. The researcher was also looking for determining the market size of different coils but it has not been possible due to non-response from the transporters, dealers and non-possibility of collecting the sales information from the route. 9. The time allotted for the study was only two months, which was not sufficient for the project. Due to these limitations, the conclusions, which have been drawn, are subjected to criticisms at every stage of its analysis and presentation. This report may not provide the best possible picture of the market scenario and the work done here can always be made better and improved.
Research Methodology
The research methodology undertaken deals with the objectives of the study.
The methodology adopted is descriptive in nature. Following are the methodologies that were adopted. 4. Different routes were visited via the company van along with the Van Sales Man (VSM). 2. In each route retailers and wholesalers were visited to collect information regarding available coils, their MRPs, cost price, purchase source. 6. Distributors of major players- Maxo, Mortein and Good Knight situated itself in the Nalbari Town were visited and they were interviewed to collect information of distributor’s landing costs and also wholesalers landing cost, their transporter, average monthly sale, schemes associated, have van service or not. 7. 15 Wholesalers of Nalbari were visited to find out wholesaler’s landing cost and retailers landing cost. This information along with the information collected from Distributor and MRPs are used to generate wholesaler’s and retailer’s margin. 8. A gap analysis is done to determine the width of the distribution. For doing the gap analysis information from the cash memos and DMCR (Daily Market Coverage Report) i.e. sales report is used. Total number of shops present in a route is collected from the Outlet Index and then the number of shops where Poweron is present is deducted.
Sources of Data Collection
Both Primary and Secondary data were used for the study..
Data Collection Methods:
The Primary data is collected by a) Interviewing the Distributors, Wholesalers and Retailers b) Observations of the wholesale and retail outlets
Secondary data is collected from a) Company website b) Daily Market Coverage Report (DMCR) i.e. Sales reports c) Distributor outlet index d) Company information brochures e) Cash memos
|Brand |No. of outlets in which available |
| Maxo |14 |
| Mortein |8 |
| GoodKnight |2 |
| Poweron |6 |
| Shaktiman |1 |
(For the above roots for reference Annexure 1)
Nalbari Town No. of outlets visited: 11 (Retailer)
|Brand |No. of outlets in which available |
| Maxo |11 |
| Mortein |11 |
| GoodKnight |4 |
| Poweron |3 |
| Shaktiman |1 |
| Red Coil |1 |
| All Out |4 |
| Crocodile |1 |
(For reference Annexure 2)
Interpretation By visiting the above roots it is found that out of 108 (26+23+19+16+14) outlets in 103 outlets Maxo is present. No other coil have such a width in all the roots. In Nalbari Town also Maxo is most available brand.
Route Wise Comparative Information On Cost of Purchase
(For the abobe table for reference Annexure 1 can be seen)
Interpretation
By visiting the roots it is found that cost of purchase for Maxo in all the roots is less than the other coils available.
DISTRIBUTION CHANNEL
Distributors List of Major Players Along with their Distribution To Whole sellers and Retailers
|Distributor's Name |Brand |Place |Mode of Distribution |
| | | | |
|M.Chiranjeelal |Maxo |Nalbari Town |In general,Customers come and take |
| | | | |
|Ganpat R.D.Kumar |Maxo |Tihu |In general, Customers come and take |
|Tirupati Agency |Mortein |NalbariTown |Some time heavy orders from remote are fulfilled by |
| | | |Other distributor’s van in distant areas |
| | | | |
|Ladolal P. Chandra |Mortein |Tihu |Sometimes heavy orders are fulfilled via Anand oil |
| | | |dealer |
| | | | |
|Ashish Agency |Poweron |Nalbari | Van service in interior parts |
| | | | |
|Jatanlal Heerawat |Poweron |Tihu |Customers come and take |
| | | | |
|Kalita Brothers |Poweron |Barama | Customers come and take |
(For reference Annexure 3)
Interpretation Distributors of the major players do not have van delivery service except Tirupati Agency(Mortein) of Nalbari Town and Ladolal P. Chandra(Mortein) of Tihu, who also sometime provide van service via major distributors of other products in order to meet the heavy orders . Eveready distributor of Nalbari goes to interior roots in every fortnight. Other distributors meet the customer requirements when customers go to them.
Sources of the Major Players in Visited Route From where outlets Purchase
Interpretation After visiting the above roots it has come to know that in every root whole sellers and retailers go to the convenient source for purchasing the required coils other than Poweron. In Rampur root some outlets get van service for Maxo by B.K. enterprise of Hazo.In Bongaon root also sometime service is provided by Anand oil dealer for the dealer of Mortein of Tihu.
Gap Analysis
|Route Name |Total Number of Shop |Number of shops where |Number of shops where |
| | |Poweron is available |Poweron is not available |
|Musalpur |52 |10 |42 |
|Rampur |56 |8 |48 |
|Bongaon |60 |10 |50 |
|Tamulpur |62 |14 |48 |
|Doomni |37 |9 |26 |
|Dhamdhama |46 |10 |36 |
|Total |313 |61 |252 |
(For the reference Annexure 4)
[pic]
Out of 313 outlets present in the above roots only 61 are having Eveready coils .The reason behind this are: ➢ In one day it is not possible to cover all the outlets. Only 25 to 30 outlets can be covered. ➢ Sales people pays more attention to the outlets who go for more purchase of Eveready batteries as well as products of other companies which are also distributed by them. In every root there is a huge gap between the total outlets and outlets having Eveready coils. To reduce the gap certain measures can be adopted such as ➢ Sales man should be asked to increase their coverage by visiting more number of outlets. ➢ There are some whole sellers who have their own Hawkers for distribution of different products. These wholesalers should be provided with extra incentive so that the coil penetration is more. ➢ Sales officer should go with the van to look for whether sales man is increasing the number of outlets or not.
Dealer’s Margin is calculated as
Dealer Margin = (WLC – DLC) / DLC
Interpretation
From the calculations it is found that Dealer’s margin for Poweron is highest in comparison to Maxo and Mortein. Maxo’s dealer sometime gets the margin of 5%.
Wholesaler’s Margin is calculated as
Wholesaler’s Margin = (MRP - RLC / 12) RLC
Interpretation
From the calculated data shown in the table it is clear that Margin for the retailers’ is highest for the Maxo, followed by Mortein and lowest incase of Poweron.
By visiting different routes it has been found that the schemes are discounted in monetary terms. Maxo and Mortein provide leaflet along with each pack, which they use as promo tool. Poweron is promoted with the dispensers for keeping the coils by hanging to the walls of retailers, which is an eye catchy for the customer. Point of purchase displays is also provided to many retailers and wholesales. Leaflet is also provided to the customers. Maxo has one scheme only for the customers that is the 40% extra with every pack in the same price. This offer is not viable for the retailers as they get fewer margins if they buy packets having such scheme.
SWOT Analysis of POWERON Mosquito Coil
STRENGHTS: ✓ It enjoys “Eveready” brand equity. ✓ Eveready has a wide & good distribution network over the entire N.E ✓ Eveready has van, which goes to the interior places of the Nalbari and some parts of Kamrup district not visited by competitors. Rural product and the organization have rural focus. ✓ Packaging with the power dish gives it extra credit.
WEAKNESS:
✓ As it is recently introduced so many people are not aware of it. ✓ Whole seller and retailer margin is less in comparison to some other brands. ✓ The company has not given any scheme for the whole sellers as well as for the retailers.
OPPORTUNITY:
✓ Eveready has van service to interior parts and no other brand has such service. So there is opportunity to occupy the rural market by supplying coils to the doorsteps of the outlets. ✓ Mosquito repellent market is growing at a rate of 30% per year. ✓ There is opportunity to increase the sales if advertisement is done via T.V. ✓ If the Poweron can establish itself in the market then the company may be able to diversify into liquid repellent and room fresheners.
THREATS:
✓ Competition between the major players for larger markets intensifies. ✓ Increase in the sales of liquid repellent especially in towns and semi-towns. ✓ More margins provided by the major players to the retailers and wholesalers. ✓ Consumers perceive as health hazard.
MAJOR FINDINGS
➢ Maxo is mostly available in the retailers and wholesalers of the visited routes. ➢ Purchasing cost of Maxo is lowest among the others in every root. ➢ Margin for Dealer is highest for Poweron i.e. 5%. ➢ Margin for Wholesalers and Retailers is highest for Maxo and it is lowest incase of Poweron. ➢ Eveready has van service to the interior places of the district. In case of other coils distributors of Mortein of Nalbari provide van service by other distributor’s van if more distant customer places order. Apart from this Mortein distributor of Tihu also some time provide van distribution by other agency’s van to meet major orders. ➢ In Rampur root B.K. Enterprise of Hazo distribute Maxo coils in the markets of Mukalmua, Rampur,Doulashal, Kaplabari. ➢ From the gap analysis it is come to know that there is a huge gap between the outlets having Poweron and not having Poweron. ➢ Schemes for most of the players discounted in monetary terms. ➢ Maxo have a scheme for consumers ie. 40% extra with each pack which provide less margin to the reailers as compared to the without schemes ones.
SUGGESTIONS
The suggestions that are to be made deal with the measures that should be taken by the organization to increase the sales of the newly launched Poweron mosquito coil.
So, inorder to increase the sales Poweron we may undertake the following measures:
1. Giving big wholesaler extra discount. Big wholesalers can be provided with some extra discount as a scheme to encourage them keep the stock of the product for pushing to the final consumers and the retail outlets which purchase other products from them.
2. VSM incentives The VSM can be encouraged or influenced to push or sale more in the outlets of the visited routes by providing extra incentive. It will have a positive effect on the VSM to sale more due to the incentives.
3. Schemes for Retailers Some schemes also should be provided to the retailers as well as to the consumers. Schemes like coupons, extra discount can be facilitated to the retailers to increase the depth of the distribution.
4. Updated van program Van Program should be scheduled in such a way that it can provide it’s service to the outlets of the routes ,one or two day before the other company van reach there.
5. TV commercial Poweron now is in it’s introductory stage. Many people don’t have knowledge about its existence. TV commercial is one of the vital medium to make the people aware of the product.
6. IN-STORE DISPLAY IMPROVEMENT:
a. Dispenser provided to hold the coils should be made available to most of the outlets. VSM should be instructed place the Dispensers in such a place in the outlets so that it attracts consumers.
b. POP display must also made available to the outlets and they should be eye catchy so that customers by seeing the visibility display get attracted to purchase the product.
7. Reducing the Gap
The organization should go for reducing the gap of total outlets present in the routes and the outlets with Poweron in order to increase the width of the distribution. Following measures can be undertaken to do so ➢ Sales man should be asked to increase their coverage by visiting more number of outlets. ➢ There are some whole sellers who have their own Hawkers for distribution of different products. These wholesalers should be provided with extra incentive so that the coil penetration is more. ➢ Sales officer should go with the van to look for whether sales man is increasing the number of outlets or not.
8. Coils can also be carried to the Weekly Market (called as Haat Bazaars) of the interior places to reach the customers of such markets.
9. Coils should be made available in the whole sellers of Tihu, Barpeta from which are two big feeder markets for the interior nearby area of Nalbari District.
9. Societal Marketing: - The organization should also under take societal marketing by implementing activities such as malaria awareness camp, health camp in rural areas inorder to inherit in the minds of the people which ultimately will lead to enhancement of brand image and increase of marketshare.
CONCLUSION
The Eveready Industries India Limited recently launched mosquito repellent coils in the market. It is launched to add something new in the business to leverage the organization’s strong distribution network. The coil is introduced as a brand extension to the brand Eveready as it has a very strong presence across the country. The organization primarily targets the rural market through its marketing channel, as most of the existing players are urban driven. From the market study it is found that Maxo, followed by Mortein, dominates most of rural markets. Retailers and wholesalers keeping Maxo, get more margins and more over they provided many schemes after their launching for which it has a better market in every area. Presently schemes are discounted in monetary terms. But the existing major players have no proper distribution network in the interior areas. In this case Eveready Poweron has advantage over the others. So, there is a future scope for Eveready to increase its distribution width in the rural roots by which it will be able to increase its width and ultimate may able to dominate the rural market which is bigger than the urban market as in urban market in today’s scenario vaporizers are very much influential.
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Manufacturing factory
Company
Godown
Distributor
VO/RS
Retailer
Wholesaler
Consumer
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95% of the households in India have an insect problem. Yet, household insecticide penetration is only 16.5%, with rural penetration even lower at 6.9%. It is surprising that India’s per capita usage of household insecticide is lower than small countries like Malaysia, Sri Lanka or Thailand. The mosquito industry is estimated at Rs 1100 crores with mosquito coils accounting for Rs. 500 – Rs. 600 crores of the total repellent market.
Out of the total mosquito repellent market in India, the South has the largest market comprising 36% whereas the East and the West have a 21% share each. The North zone is slightly larger with a 22% market share of the entire repellent industry.
Mosquito coils dominate the rural markets as the use of vaporizers and mats are dependent on electrical connectivity. In urban areas, while other repellents have penetrated, mosquito coils continue to be used, especially outdoors and erratic power supply situations.
