1. SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL
FULFILLMENT OF GRADUATE DEGREE IN BUSINESS ADMINISTRATION
UNDERSTANDING PAN MASALA Industry and SUGGESTING Strategies for
ENHANCING Sales and Sales Promotion Activity of PAN VILAS Pan Masala.
INDUSTRY MENTORS: 1) MR. Ashish Sood SUBMITTED BY
2) MR. Kavit Monga Manchit Malhan
Company Name: GPI Roll
No.02414901809
Course: BBA (B&I)
Maharaja Surajmal Institute, New Delhi
2. (Affiliated to GGS Indraprastha University, New Delhi)
MAHARAJA SURAJMAL INSTITUTE
IP UNIVERSITY, DELHI
INDEX
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4. ACKNOWLEDGEMENT
I, Manchit Malhan has got the privilege to do my internship at GODFREY PHILLIPS
INDIA Ltd. would like to thank my industry guide Mr. Ashish Sood (Area Sales
Manager) and Mr. Neeraj Nimran (Area Manager) for giving me the opportunity to
work on one of the most emerging product PAN VILAS- PAN MASALA of the company
GPI during my summer internship.
It has been an enriching experience visiting the allotted market during my training which
helped me understand how market functions in correspondence with an emerging product
Pan Vilas.
I take this opportunity to express my deep sense of obligation to Mr. Rakesh Talwar
(TMS) for his support and constant encouragement. It is because of him that I have been
able to understand the market. My learning’s would have been incomplete without his
presence. I owe my project to his support and cooperation.
I take this opportunity to express my gratitude to the distributor firm M/s Nand Kishore
Monga Foods Pvt Ltd. for their constant selfless support and cooperation.
I wish to extend my appreciation to all the dealers and Retailers of North Delhi and the
consumers of the region who helped me figure out the product PAN VILAS and the issues
involved with it.
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5. UNDERTAKING
I, Manchit Malhan hereby solemnly declare that the project titled “UNDERSTANDING
PAN MASALA Industry and SUGGESTING Strategies for ENHANCING Sales and
Sales Promotion Activity of PAN VILAS Pan Masala”
is my original work and has not been published previously anywhere in Magazine, trade
journal or any other University or elsewhere for the award of degree or Diploma.
Further I also declare that I have tried to my level best to complete this project with all
my sincerity, honesty and accuracy. Even then if, any mistake or error has crept in, I shall
most humbly request to reader to point out those error. Any suggestion regarding this
Survey Report will be most welcome.
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6. CERTIFICATE
This is to certify that _Manchit Malhan____________ student of
BBA (Banking & Insurance)
Programme, Roll number _02414901809___________ has successfully
completed the project on
UNDERSTANDING PAN MASALA Industry and SUGGESTING Strategies for
ENHANCING Sales and Sales Promotion Activity of PAN VILAS Pan Masala
and has submitted the project report of the same on time.
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7. EXECUTIVE SUMMARY
This report is a market scan to find out the issues involved with the emergence and the
acceptance of the product PAN VILAS-PAN MASALA.
PAN VILAS-PAN MASALA is basically a new emerging product for the premium
segment (Pan Masala). The USP of this product is that it is free from magnesium
carbonate. This market scan was done in designated area of North Delhi to figure out
the problems and the opportunity area for the company to work upon. Since the market has
a very large consumer population but the sales volume in premium segment as compared to
the consumption power is not on the higher side because consumer prefers mix- i.e. with
zarda.
Whereas in Rs2/- segment product is capturing market and loyal customer base.
During my internship I concentrates on following aspects i.e. Consumer behavior (through
primary research), Product availability, marketing & sales promotion and the various
competitors available in the market.
It is essential to periodically assess customer satisfaction level and to derive necessary
information to make conclusion. The broad objective of the study is to know customer’s
behavior, feeling and their expectation from the company and their valuable suggestions.
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8. 1. INTRODUCTION
1.1 Company Profile
GODFREY PHILLIPS INDIA LTD.
Godfrey Phillips India Ltd. is primarily a tobacco product company with a difference. "WE AIM TO
SATISFY" is our motto, attuned to the changing needs of our customers
We are an Industrial Conglomerate in India, founded in the year 1933 by the Late Rai
Bahadur Gujarmal Modi, employing a dynamic workforce and with diversifications into
various sectors of businesses keeping in tune with the changing times… as long as it is a
move forward.
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9. THE FOUNDER OF GPI GROUP
Rai Bahadur Gujarmal Modi
1902 - 1976
"Change we believe is the only constant, but if a vision remains constant there is no limit to
what can be achieved". It was this very vision of a boy, standing in the middle of a cane field
that gave rise to an industrial township for the betterment of his fellow men.
This is the story of Rai Bahadur Gujarmal Modi who founded the Group in year 1933. From then
on there was no looking back
The Sugarcane Development Co-operative Society was set up in 1938-39
Vanaspati factory, using cotton seed oil was set up in June 1939
The washing soap factory utilising the waste sludge was established in 1940.
The toilet soap factory emerged in the year 1941. Soaps were manufactured under the brand names,
Modi No. 1 and Perfect soap.
The Modi Tin Factory was established in 1941 to fulfill the demand of the Vanaspati unit for tin
Containers.
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10. Modi Food Products was born on 28th May 1941 this factory was separated from the sugar factory
And converted into a public limited company on 18th December 1941.
Sometime later a new company, Modi Supplies Corporation Ltd. was set up to process dry fruits
into cakes and tablets for the use of the armed forces.
A Biscuit manufacturing factory and a confectionary plant was also set up in 1943.
The Modi Oil Mills was set up in 1944 to meet the needs of the Vanaspati unit for pure cottonseed oil
and groundnut oil.
VISION OF THE COMPANY
About GODFREY PHILLIPS INDIA LTD.
With a rich heritage of over 60 years in the industry, Godfrey Phillips India has also
incorporated the latest technology to deliver products of the finest quality in the market.
Driven by innovation and speed to market, the two manufacturing facilities in Ghaziabad
(near Delhi) and Andheri (Mumbai), are equipped with state-of-the-art equipment and
1. 10
11. incorporate best practices like TQM, Haichi-Ban, 5S, Kaizen Teian etc. The facilities
comply with international quality standards like ISO 9001:2000 and ISO 14000 and it is a
matter of pride for us that our high standards of environment-friendly manufacturing was
brought about entirely due to the recommendations of motivated factory workers who have
also established an industry record by winning the INSAAN awards (given for the best
suggestions made by a factory worker in the year) for the past 11 years running.
Godfrey Phillips India views its R&D capabilities as a vital component of its business
strategy that provides a long term edge over its competition. Located along with the
production facilities, the R&D
• The success of Godfrey Phillips India is the result of the Company’s commitment
to innovations, enhanced operational efficiencies and adoption of internationally
acclaimed business processes. Driven to excel, innovate and win, we intend to
emerge as one of the most respected Company in the tobacco industry.
• As the second largest player in the Indian cigarette industry, our annual turnover
exceeds INR 2200 crores (approx. US $458.05 million). We own some of the most
popular cigarette brands in the country like Four Square,
Red and White, Jaisalmer, Cavanders and Tipper. Over the years we have also set
our own benchmarks in innovation with revolutionary brands like Stellar, the first
slim cigarette and I-gen, the first euro norm cigarette in India.
• Our products are distributed over an extensive India wide network of more than
500 distributors and 800,000 retail outlets. With the Corporate Office in Delhi, the
Company has offices all across India in over 8 locations.
Godfrey Phillips India has two major stakeholders, one of India's leading industrial houses
- the K. K. Modi Group and one of the world's largest tobacco companies, Philip
Morris. The Company also extends its competencies and together they strive to
implement the best in the market.
K. K. Modi Group
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12. The K. K. Modi Group is part of a US $ 2.4 billion Modi Enterprises that
was founded by Rai Bahadur Gujarmal Modi in 1933. The Group spans a
diverse range of businesses which include agro-chemicals, tobacco, tea
and beverages, education, entertainment, direct selling, network marketing
and gourmet restaurants. These businesses further include steel, sugar,
textiles, chemicals, tyres, computers, copiers, cosmetics,
telecommunications, entertainment, homecare, pharmaceuticals and on
line lottery.
Preamble
In terms of the revised Clause 49 of the Listing Agreement with the Stock Exchanges, the
Board of Directors are required to lay down a code of conduct for all its Board members as
well as senior management one level below the executive directors including all functional
heads ( a list of present directors and senior management is attached). This code of conduct
has accordingly been approved by the Board of Directors by a resolution passed by
circulation which will be effective from 1st January, 2006 and the same shall be uploaded
on Company’s website for information of general public.
Applicability
This code is applicable to the Board Members and Senior Management who are members
of its core management team one level below the executive directors including all
functional heads (hereinafter collectively referred to as “Employee(s)”. All employees
must read and understand this code and ensure to abide by it in their day-to-day activities.
Values and Expected Behaviors
1. Passion for winning
o Constantly thrive in bettering the competition in every field.
o Have a positive attitude, and restlessly seek and capture new opportunities.
2. Innovation through learning and entrepreneurship
o Be a world class innovative organization by continually developing and
successfully launching new brands.
o Encourage risk taking and learning, and create conditions for empowerment
with accountability.
3. Winning trust internally and externally
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13. o Build enduring relationships with all stakeholders including employees,
shareholders and trade/alliance partners, and honour all commitments.
o Encourage transparent and fair systems and policies.
4. Global mindset
o Constantly benchmark in all areas against the best globally, and strive to
exceed those benchmarks.
o Develop opportunities through a global network of distributors and
alliances.
5. Socially responsible corporate citizen
o Ensure the compliance of all applicable laws and the highest standards of
corporate governance.
o Support and encourage employees to actively participate in identified social
and environmental concerns.
Philip Morris Company
Philip Morris International Inc., through its subsidiaries, engages in the manufacture and
sale of cigarettes and other tobacco products in markets outside of the United States. Its
international product brand line comprises Marlboro, Merit, Parliament, Virginia Slims,
L&M, Chesterfield, Bond Street, Lark, Muratti, Next, Philip Morris, and Red & White.
The company also offers its products under the A Mild, Dji Sam Soe, and A Hijau in
Indonesia; Diana in Italy; Optima and Apollo-Soyuz in the Russian Federation; Morven
Gold in Pakistan; Boston in Colombia; Belmont, Canadian Classics, and Number 7 in
Canada; Best and Classic in Serbia; f6 in Germany; Delicados in Mexico; Assos in Greece;
and Petra in the Czech Republic and Slovakia. It operates primarily in the European Union,
Eastern Europe, the Middle East, Africa, Asia, Canada, and Latin America. The company
is based in New York, New York.
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14. Philip Morris, Esq., a tobacconist and importer of fine cigars founded Philip Morris in the
mid 1800's, by opening a shop on Bond Street in London. Its first cigar was produced in
1854. Leopold Morris took over his brother's business in 1873, when he passed. Leopold
joined Joseph Grunebaum and created Philip Morris & Company and Grunebaum, Ltd.
This partnership was separated two years later in 1887; the company now became Philip
Morris & Co.Ltd.
In 1894 Philip Morris was for the most part controlled by William Curtis Thomason and
his family, due to the company being taken over by creditors. Only six years after being
taken over by creditors it was appointed tobacconist to King Edward VII. George
Eckmeyer imported and sold English-made cigarettes in the United States, since 1872, he
was Philip Morris' only agent in the U.S. He incorporated Philip Morris & Co., Ltd. in
New York, in 1902. The ownership was split 50-50 between the British parent and the
American partners. It sold the following brands: Philip Morris, Blues, Cambridge, Derby,
and one named after the street its London factory was on, Marlborough.
Philip Morris purchased a factory in Richmond, Virginia in 1929, where it first began to
manufacture its own cigarettes. Whelan's Tobacco Products Corporation crashes shortly
before the market in 1929; Rube Ellis, who calls in Leonard McKitterick and appoints him
president, picks up Philip Morris2. Only 3 years later Otway Hebron Chalkley was
appointed president of Philip Morris and then became chairman of the company in 1945.
Johnny Roventinni was a bellhop who was discovered in 1933 in a New York Hotel and
became the Philip Morris spokesperson for the next forty years.
The Axton-Fisher plant and facilities in Louisville, Kentucky was bought out by Philip
Morris in 1944. An investor group headed by A.P Giannini, founder of the Bank of
America, had bought the Axton-Fisher Tobacco Company in 1942. The company was
unsuccessful in making their new Fleetwood cigarette a major contender to Lucky Strike,
Camel, and Chesterfield, Axton-Fisher was sold to Philip Morris3. Another Philip Morris
plant was opened in Louisville, Kentucky in 1952. The first major affiliate outside of the
U.S. was Philip Morris Ltd. (Australia).
In 1964 the report by the Surgeon General on Smoking and Health was issued. The Federal
1. 14
15. Cigarette Labeling Act took effect in 1966 in the U.S. All cigarette companies were
required to put a warning label on all cigarette packs.
Philip Morris Inc.; and three operating companies: Philip Morris Domestic; Philip Morris
International; and Philip Morris Industrial, were created when Philip Morris decided to
reorganize its corporate structure in 1967. Within one year of Philip Morris Domestic
being created it changed its name to Philip Morris USA.
In 1969 fifty-three percent of The Miller Brewing Company (from W.R. Grace & Co.)
based in Milwaukee, was acquired by Philip Morris. The other forty-seven percent of the
Miller Brewing Company (from De Rance Foundation), was acquired by Philip Morris in
1970. In 1978 George Weisman was appointed chairman and CEO of Philip Morris Inc.
Also plans to construct a new 26-story corporate headquarters building in Midtown
Manhattan, across from Grand Central Station, were announced. The company also posts
record revenues ($6.6 billion) and profits ($409 million), for 25 consecutive years. In 1983
they reported record revenues ($13 billion) and earnings ($904 million), for the 30th
consecutive year.
In 1984 Philip Morris Inc. got a new president and CEO, Hamish Maxwell. Philip Morris'
Inc. corporate framework was restructured in 1985 and Philip Morris Companies Inc.,
becomes the parent company of Philip Morris Inc. Philip Morris Cos. also went through
the largest non-oil acquisition in U.S. history when they acquired General Foods Corp. for
$5.6 billion. Philip Morris was the first U.S. Company to line up most of the financing for
an acquisition from non U.S. banks. Philip Morris' revenues increased more than 50
percent to $25.4 billion, while net earnings reach $1.5 billion in 1986, due to the General
Foods acquisition. Philip Morris once again set another record in 1988 when they acquired
Kraft for $13.6 billion, a new record for the largest non-oil acquisition in U.S. history. As
in their previous acquisition with General Foods almost all of the financing was provided
by non U.S. banks.
In 1990 Kraft, Inc. and General Foods Corp. were combined to create Kraft General Foods,
which was the largest Food Company in the U.S. Philip Morris Cos. revenues increased by
41 percent to nearly $45 billion; net earnings jumped 26 percent to nearly $3 billion. Fat-
Free products in seven different categories were introduced by Kraft General Foods in
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16. 1990, which were more products than any other companies offered at the time. One-year
later Capri Sun, Inc. was acquired by Kraft General Foods. In 1992 Jacks Frozen Pizza,
Inc. was acquired by Kraft General Foods. They also acquired two Eastern Europe
businesses, one of them being Hungary's leading confectionery manufacturer, Csmege. The
purchase by Kraft General Foods of RJR Nabisco (U.S. and Canadian ready-to-eat cold
cereal) for $448 million was completed in 1993.
In 1994 Philip Morris Cos. appoints its new chairman, William Murray and names
Geoffrey C. Bible president and CEO. Only one year later Geoffrey C. Bible became
chairman and CEO of Philip Morris Cos.
In 1995 there was a reorganization of Kraft General Foods. The reorganization created
Kraft Foods Inc., which consisted of one operating company with category based divisions.
Entenmann's baked goods was one of the three businesses that Kraft decided to sell off.
One year later the Taco Bell line of grocery products was sold to Kraft Foods. An Internet
site for "good food and good food ideas", was launched by Kraft Foods, it was called the
Kraft Interactive Kitchen. The Jello-O gelatin brand 100th anniversary was celebrated by
Kraft Foods in 1997.
In 1998 the tobacco industry reached an agreement with the state Attorneys General, this
put an end to all of the nationwide Medicaid lawsuits that were filed against it. The
companies agreed to pay about $200 billion to the 46 states over a 25 year period. They
also consented to a number of marketing restrictions, one of the being taking down tobacco
billboards and stopping the distribution of tobacco branded promotional items, like t-shirts
and baseball caps. Part of the settlement agreement provides $1.5 billion to research and
programs that are aimed at youth smoking prevention. Philip Morris requested that each
state that is receiving part of the settlement dedicate a considerable amount the settlement
to youth prevention smoking programs. Philip Morris itself has created a $100 million
Youth Smoking Prevention program that includes television commercials. Philip Morris is
also concentrating its efforts in other areas such as feeding the hungry, helping victims of
domestic violence and disaster relief. Over the past four decades Philip Morris has donated
over $500 million to charity4.
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17. In 1999 Philip Morris launched its corporate website (www.philipmorris.com). Philip
Morris has been working hard to change the public perceptions the company created by its
silence. In keeping with the same effort of changing the public’s perception, Philip Morris
launched a $100 million national television advertising campaign in the fall of 1999 that
highlights the company's people, products, and programs. The commercials airing profiled
the company's efforts to feed the hungry, its involvement in helping victims of domestic
violence, its work in disaster relief, and its efforts to help retailers keep cigarettes out of the
hands of kids4.
Philip Morris is the largest consumer packaged goods company in the world. If it wasn't
for Philip Morris' innovative thinking and its ability to keep up with these fast times, the
company wouldn't have survived and made it to where it is now.
Partners:
• Philip Morris
Altria Group Inc is the parent Company of Philip Morris International, Philip Morris USA
and Philip Morris Capital Corporation. Altria Group owns 100% of the outstanding
stock of Philip Morris USA, Philip Morris International and Philip Morris Capital
Corporation.
Philip Morris, the owner of some of the world's most respected brands including
Marlboro, is one of the largest shareholders in Godfrey Phillips India and has an
1. 17
18. agreement with the Company to provide technological services and assistance in all
areas of business.
In 1968 Philip Morris International Finance Corporation, a wholly owned subsidiary of
Philip Morris Inc., U.S.A. acquired full ownership of Godfrey Phillips Ltd., London, U.K.,
which was the Holding Company of Godfrey Phillips India Ltd. till the issue of shares to
the Indian public during 1975. As a result of acquisition of Godfrey Phillips Ltd.,
London, U.K. as above, Philip Morris Inc. through its wholly owned subsidiary, Philip
Morris International Finance Corporation became the Holding Company of Godfrey
Phillips India Ltd. After the public issue in 1975, offer for sale to Indian public in 1979
and a rights issue in 1981 the shareholding of Philip Morris International Finance
Corporation in Godfrey Phillips India Ltd. came down to the present level of 35.93%.
Philip Morris Inc. joined hands with the K. K. Modi Group in 1979.
• Altadis
In December 2002, Godfrey Phillips India commenced as the exclusive distributor for
the brands of the world's largest cigar manufacturer, Altadis in India, Nepal and Sri
Lanka.
Altadis the world’s largest cigar manufacturer has three major areas of activity, which
are blond and dark cigarettes, distribution and cigars. Blond and dark cigarettes are
manufactured and marketed by the group itself, under well-established brand names
in France and Spain. It is a market leader in its segment.
Altadis's value-added logistical expertise in tobacco and consumer-product services is
extended to retailers to new sectors. Altadis ranks 3rd in Western Europe in cigarettes
and 1st in the world in cigars.
Altadis group is the undisputed leader in three of the largest cigar markets namely
United States, Spain and France.Some of the well known cigar brands of the Company
are: Farias, Fleur de Savane, Phillies, Dutch Master, VegaFina, Pleiades, Don Diego,
Longchamp, Antonioy Cleopatra, Santa Damiana, Meccarillos, Cruzeros, Montecristo,
Partagás, Cohiba, La Gloria Cubana, H. Upmann, Picaduros, Ducados Mini, Van Holden,
Entrefinos, Tampa Nugget, Hav-a-Tampa, Backwoods and yotras marcas.
The Cigar Division of the Company consolidated its No.1 position worldwide in 2002,
with a market share of nearly 25%, a sales volume of around 3.2 billion units.
PRODUCTS OF THE COMPANY
Tipper: Tipper is the fastest growing micro segment brand from Godfrey Phillips.
The relatively new entrant into the Godfrey Phillips stable, Tipper has driven consumer delight among
micro smokers through intense consumer understanding and continuous innovation. The brand is the
1. 18
19. undisputed national leader in the tipped micro segment with significant presence in states of
Maharashtra and Andhra Pradesh.
Stellar: The first slim cigarette to be launched in India. It has been specially
engineered to deliver low nicotine without a compromise in taste and flavour. It is available in an
elegant slim shaped 10’s and 20’s pack, aimed at the cognitive consumer who wants to be
progressive and responsible in his habits and lifestyle.
Red & White Flake: One of the most renowned brand names of the nation, it
has been rated in the top 50 brands in the FMCG sector. It is continuing to build upon its iconic
stature.
Northpole: Launched in the year 1958 North Pole is the largest selling
menthol cigarette in India. North Pole has recently the Golden Peacock commendation Award for
innovation in packaging.
Marlboro: world’s largest selling brand in the premium segment. It’s the
company’s heritage brand and is known for its high quality and standards.
Four Square: The flagship brand of Godfrey Phillips, Four Square is the
market leader in the majority of its operating markets. The vibrant brand continues to delight its loyal
consumers through constant innovation and an enriching product experience.
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20. Cavanders: Cavanders is one of the oldest and most trusted brands of
the industry. Known for its heritage and highest quality standards, Cavanders has been providing
superb value and satisfaction to its consumers.
Snapshot of company’s product profile:
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23. 1.2 PRODUCT PROFILE
PAN MASALA
Pan Masala is a mixture of nuts, seeds, herbs, and spices which is served after meals in India.
Various versions of pan masala are also served in the Middle East and parts of Southeast Asia,
where they are treated as mouth fresheners. Some households and restaurants make their own
pan masala mixtures with special house ingredients, and it is also possible to purchase packaged
pan masala from spice stores and many markets in India. Outside of India, pan masala is available
at Indian specialty stores and through importers.
The ingredients in pan masala vary widely, depending on personal taste and region. Fennel
seeds are often key ingredients, since they tend to leave the mouth with a fresh feeling, and
it is also possible to find cinnamon, cardamom, lime, menthol, areca nuts, betel nuts, and
various other ingredients. When chewed, the ingredients in the pan masala helps to freshen
the breath, and they are also said to aid digestion, which can be very useful after eating
ferociously spicy food which might upset the stomach.
The tradition of chewing breath fresheners after meals is ancient, and it has a very long
history in India in particular. In eras before regular dental hygiene, things like pan masala
helped to keep the breath fresh and to support dental health. Some pan masala mixtures
even have herbs and spices with antibacterial properties which benefit oral health, and pan
masala also sometimes includes stimulant herbs to give people energy after eating.
One version of pan masala, guthka, includes tobacco, which may be flavored or treated
with various additives. This has led to concern in many communities, where people do not
want children consuming tobacco. In addition, chewing tobacco has been linked with
various cancers. As a result, sales are restricted or banned in some regions, and there is
some confusion about pan masala, with some people dismissing all pan masala as
unhealthy, while others distinguish between pan masala with tobacco and without it.
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24. • OUR PRODUCT
Godfrey Phillips enters pan masala Industry
Godfrey Phillips India entered the pan masala segment by launching Pan Vilas, a
magnesium carbonate free chewing product. The company is targeting five per cent share
of the premium pan masala market in the first year of its launch.
Pan Vilas has been developed on the pillars of research and development on the premium
pan masala segment, with cutting-edge quality control processes and state-of-art
manufacturing methods. This new entrant, who is targeted at the discerning premium pan
masala consumer, will make Godfrey Philips India the biggest player to penetrate into the
pan masala category. It is India's first pan masala which is fully compliant with Prevention
of Food Adulteration (PFA) rules.
The company aims to leverage its sales and distribution network of cigarette category for
the pan masala business through its retail centers. Currently, the Indian chewing industry is
estimated to be Rs. 11,660 crores which consists of three categories, namely, pan masala,
zarda and gutka. The premium chewing industry is Rs. 3075 crores out of which the
1. 24
25. premium pan masala market is estimated to be Rs. 1500 crores. Godfrey Phillips India
plans to target five per cent share of the premium pan masala chewing category in the first
year.
Godfrey Phillips India is the second largest player in the Indian cigarette industry with an
annual turnover of over Rs 2200 crores. Incorporated in 1936, Godfrey Phillips has two
major stakeholders, the KK Modi Group and Philip Morris.
The Delhi-headquartered company manufactures cigarette brands in the country like
Marlboro, Red and White, Four Square, Jaisalmer, Cavanders and Tipper.
The company's other ventures include tea brands such as Symphony and Super Cup, and
Funda Mint in the confectionary segment.
We have developed a PFA (Prevention of Food Adulteration Act) compliant product,
which is a first in this industry.
No use of banned Magnesium Carbonate, replaced with natural alternate
• PFA compliant flavors and ingredients
• Our ingredient testing and processing is such that there will be no impurities
in the product such as supari shell pieces, jute pieces, metallic pieces and
other foreign matter.
• Fine mesh is used for impurity removal
• Stainless steel separator
World class machinery and manufacturing process to ensure uniform drying,
leading to uniform crispiness of supari.
Stringent quality control checks and testing processes to ensure consistent, high
quality product.
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26. A non-tobacco mouth freshener
In North India, mostly consumed with zarda
In other areas, mostly consumed individually (Sada)
Key ingredients:
Betel nuts, catechu, cardamom, slaked lime and flavors
Pricing & SKUs
Premium:
Rs 2 for 1.5gm
Rs 6 for 4 gm
Rs 24 for 18 gm
Rs 120 for 100 gm
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28. 1.3 MARKET INRODUCTION
Pan Masala – National Mkt. Share
Pan Masala – Annual Market Size :Rs. 1,658Cr
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Rajnigandha,67
%
RMD,13%
Pan
Parag,10%
PanBahar,8%
Others,1% KP,1%
33. Dharampal Satyapal Group (DS Group) is Rs. 1600 crores Approx diversified conglomerate, which is
committed towards high quality products & credited with several innovations over last eight decades. The sagacity to weave
its business around consumer needs has conferred DS Group with a distinct value. Efficient capital structure, cutting edge
technology, operational discipline and a widespread distribution network, have together attributed to enhance ‘Brand DS’, and
enabled the organization to deliver continued growth in all areas of operation.
Its undeterred pursuit for ‘Quality & Innovation’ has led the Company to progress on a path of growth.
The Group has consolidated its position into diversified sectors like FMCG, Packaging, Hospitality,
Rubber thread, Cement and other businesses.
Beginning its journey with Tobacco, DS Group successfully ventured into the arena of Foods &
Beverages, alluring the consumers with a wide range of beverages, spices, and ready-to-eat snacks
under the brand ‘Catch’. While ‘Catch’ Natural Spring Water and its variants continue getting great
response from consumers, ‘Catch’ Salt & Pepper tabletop dispensers hold their supremacy as India’s
first rotatory table top dispensers. Catch Spices excessively continues to be connoisseurs’ favorites.
The latest products to be introduced under catch brand are Catch ‘Fresh Grinds’.
In the Mouth Freshener Category, non-tobacco, Rajnigandha rules the market as the world’s largest selling
premium pan masala. ‘Pass Pass’ has created a new product category all-together as India’s first ever branded ‘all
natural’ non supari assorted mouth freshener. Taking forward the Indian tradition of eating and serving mouth
fresheners after meals, Rajnigandha, the premium mouth freshener brand, has introduced a mild new
flavor, “Meetha Mazaa- the Indian Mouth freshener”. Reinforcing the emphasis on the quality at all levels, Meetha
Mazaa is revitalizing.
Rajnigandha, the world’s largest selling premium Pan Masala, is the flagship brand of DS
group. This completely tobacco free pan masala is a rich blend of select ingredients such as
1. 33
34. Betel nut, Catechu, Lime, Cardamom, Menthol and added flavours. Its excellent quality has
made it the taste of millions of Pan Masala connoisseurs around the world.
Rajnigandha is available in 1.6 gm, 4 gm, 8 gm, 18 gm, 100 gm, 250 gm, 1000 gm pack sizes
and 40g Zipper size, priced in the premium category.
RAJNIGANDHA has a well established market in north India and
enjoys the large market holding with an advantage of a loyal customer. Consumer prefers
mix in the premium segment i.e. Rajnigandha & tulsi.
It’s a very old brand name in the pan masala industry and is satisfying the customer with
its zarda mix i.e. TULSI especially made to match the essence and flavor of Rajnigandha.
Shri. M.M. Kothari
He is respectfully known as Babuji. Babuji has over five decades’ experience in the field of
manufacturing and marketing of consumer products. He has been instrumental in
establishing the Group and behind its unabated growth for more than three decades and
continues to guide &motivate.
Mansukhbhai conceived an idea of presenting a substitute of “Pan” which through years of
improvements culminated into the innovation of Pan Masala branded as “Pan Parag”..
Implementation of this idea resulted in birth of Pan Parag Pan Masala on 18 August, 1973.
He is a patriarch of Pan Masala industry in the organized sector. Shri M.M. Kothari was
honoured with National Award in 1987 by the then President of India.
1. 34
35. Expansion
“Pan Parag” was the first branded product in its category and the marketing skills &
innovative ideas created a huge customer base and the demand kept ever rising. Automation
of the plant including import of sachet packaging machines were done to meet the demand in
the year 1985.
Today in addition to our own production set-up, we have given franchise rights to many
franchisees to manufacture and deliver the product in the market. Shri Mitesh Kothari (s/o.
Shri Deepak Kothari), a post-graduate from Buckingham University, U.K. joined the Group &
plays a vital role in the expansion of the activities of the Group by seizing the opportunities and
entering into new businesses. He also cultivated the corporate culture within the organization.
Group expanded its business by launching Zarda, 7-Up Coconut Oil, Budget Detergent
products and “Yes” Mineral Water, Real Estate development, International Trade,
Manufacturing of precision equipments & Spares for Aviation, Oil exploration & wind energy
sectors etc.
Vision & Mission
Kothari Group is committed to provide superior Product, quality, availability and
reasonable pricing. Maximise the stake holder’s value and abide by the Corporate
Governance philosophy comprising the objective of attainment of highest level of
transparency, accountability and equity in all facets of its operations.
Corporate Mission is to be a Market Leader not only in India but also in the overseas
markets through Best Product at optimum price
Our Group is committed to eco-friendly and sustainable development as a responsible
CorporateCitizen.
“We re-define to lead a better life on a greener earth”
PAN PARAG has large market share in the region and enjoys
a large consumer base. It comes in two segments i.e. Plain (sada) and zarda mix. Market
1. 35
36. capture of zarda mix is comparatively greater than the plain segment. Company’s major
sale comes from the zarda mix. Plain segment also has a potential customer because of its
established brand name and its heritage product in the premium segment. Pan Parag comes
in different sku variants I.e.
Rs2 for 1.5gm
Rs6 for 4gm
Rs24 for 18gm
Rs120 for 100gm
In 1966 a person called Prakash Chand Jain a passionate pan lover developed this unique
product and founded the group. In 1966 he set about inventing pan masala. He traveled
around the country to procure the best possible ingredients – the choicest supari, the purest
kattha, handpicked elaichi seeds from the rain drenched farms of Karela, sandal oil, kewra
and luxury attars with heavenly aroma.
But that was only the half task. Now he began to work on the perfect mix of these
ingredients. After three years of back-breaking hard work, the pan masala was finally
ready in 1966. His joy knew no bound.
He lovingly called it PAN BAHAR.
1. 36
37. His hard work was not over yet. To his shock, the traders and pan shops refused to stock
this revolutionary product. His faith in the product and persistent hard work to win over
trade.
In 1967 he started standing in front of the pan shops to give away free samples of pan
bahar to the customers. Slowly but surely, these customers started coming back for more.
Then there was no looking back.
Within a few years it became a huge success and Pan Bahar became the household word
and the parrot symbol was everywhere- from the parties of the high and mighty to the
tables of the connoisseurs. The product always had a demand ahead of supply and such
was its craze that traders had paid in advance for the product.
Pan Bahar used modern trade techniques and promotional activities including radio spots,
press release and direct mailers.
In 1978, Pan Bahar was out of the market and got discontinued but the love and loyalty of
connoisseurs and customer made the re-entry in market and now the smiles are back and it
is back with a bang.
Pan Bahar is a major player in Rs2-sku segment and enjoys a large market holding. It has
two variants i.e. plain (sada) and zarda mix. Both the products are well established and
enjoy a large customer base. Company relish great name in the chewing industry. Though
Pan Bahar offers all the sku-variants i.e.
Rs2 for 1.7gm
Rs6 for 6gm
1. 37
38. Rs24 for 18gm
Rs120 for 100gm
But the major holding and interest of the company lies in Rs2-sku.
SCHEMES OPERATED IN MARKET At DEALER and
RETAILER end:
Schemes by GPI:
1. On empty Packet (MP) of Rs6-sku Company giving 1 red&white pack free.
2. On purchase of half packet i.e.25 pouch’s of Rs6-sku offering 5 pouch’s of
Rs2 free .
3. On purchase of 6 zippers’s offering 1 zipper free i.e. 6+1.
4. On purchase of 6 tins get 1 tin free w.e.f. From 28.07.10.
5. On purchase of 1 Packet (MP) of Rs2-sku get 6 pouch’s inside the packet
and additional 5 pouch’s above that.
6. On purchase of 10 Packets of Rs2-sku get 1 packet free w.e.f. from 1st
Aug.
7. On purchase of Rs2-sku carton offering 10 packets free.
Schemes operated by PAN BAHAR:
On purchase of 5 packets of Rs2-sku gets a scratch coupon free offering 10-15
pouch’s free on the purchase.
100+1 packet in carton and offering 20 scratch coupons inside and 1-2 target
coupons.
1. 38
39. Target coupon offers different free gift on the achievement of their prescribed
targets.
ASHOK CO. - TARGET COUPON:
8 Coupons – 1 silver coin 10gm.
35Coupons- 1 Silver coin 50gm.
65Coupons – 1 Silver plate 100gm.
150Coupons – 1 Silver plate 250gm.
275Coupons – 1 Gold coin 8gm.
Schemes by DS GROUP-RAJNIGANDHA:
Offering a free gift item i.e. 2 bags free or an umbrella free on purchase of
Rs6sku carton.
No additional schemes operated by company on any of its variants.
Schemes operated by Kothari bros. PAN PARAG:
On purchase of 5 packets of Rs2-sku offers a scratch coupon giving 12-15
pouch’s free.
On purchase of Rs.2-sku carton 5-6 packets free inside.
On purchase of 5 zippers get 1 zipper free i.e.5+1.
1. 39
40. PRICING STRATEGY: Pricing strategy in the market is
determined on the basis of the offers and the schemes being operated in the
market by respective companies. The calculation of net profits at dealer and
retailer end is calculated after their discounts are deducted.
In Pan Masala industry the major interest of companies lies at retailer end as
they are the end to consumer and plays a major role in selling of pan masala.
Any scheme being operated in market is successful only if retailer is satisfied
and enjoying profits. Dealers prefer to buy products which are in high demand
by retailers as they sell in bulk.
In premium segment Pan Masala the consumer is willing to spend on all the
variants of product if it clicks with the consumer.
The detailed pricing of premium segment pan masala has been discussed
in detail above and follows below with the price comparator tables.
1. 40
42. Brands Net Value to Dealer Purchase Rs Sale Rs Net Profit% SKU-
Pan Vilas Rs 71 87 88 23.90% Rs2/-
Pan Bahar Rs 73.30 87 90 22.44%
Pan Parag Rs 72.50 86 88 21.30%
Rs6/-
Pan Vilas Rs 247 257 260 5.26%
Pan Parag Rs 240 250 260 8.33%
Rajnigandha Rs 246 256 260 5.69%
Rs24/-
Pan Vilas Rs 433.33 520 537 23.90%
Pan Parag Rs 500 520 535 7.00%
Rajnigandha Rs 506 527 540 6.60%
Rs120/-
Pan Vilas Rs 533 622.5 630 18.07%
Pan Parag Rs 975 975 1000 2.56%
Rajnigandha Rs 1085 1085 1110 2.30%
Net value to dealer is calculated after deducting discounts and
schemes given above.
NET PROFIT TO RETAILER
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43. Brands Net Value to Retailer Purchase Rs Sale Rs Net Profit% SKU-
Pan Vilas Rs 72.13 88 100 38.60% Rs2/-
Pan Bahar Rs 76 90 100 31.10%
Pan Parag Rs 74.76 88 100 34%
Rs6/-
Pan Vilas Rs 227.50 260 300 29.60%
Rajnigandha Rs 250 260 300 20%
Pan Parag Rs 250 260 300 20%
Pan Vilas Rs 447.50 537 600 34% Rs24/-
Rajnigandha Rs 519 540 600 15.50%
Pan Parag Rs 514.25 535 600 16.60%
Rs120/-
Pan Vilas Rs 540 630 720 33.33%
Rajnigandha Rs 1110 1110 1200 7.10%
Pan P arag Rs 1000 1000 1200 20%
Net value to retailer is calculated after deducting discounts and
schemes given above.
1. 43
44. MARKET DEMOGRAPHY:
The market allotted was North Delhi and suburbs i.e. RDP (Rural area). North Delhi is a
very developed area and has all the major stores and outlets. The consumption power is
very high and people are ready to spend. Area has a mixed population of high and low
income group people. Area has well developed road network and has a developed
infrastructure facilities. There is a large retail network of pan outlets.
Area’s covered in BBM (Vijay nagar) branch:
ISBT, Kashmere Gate, More Gate, Rajpur road, Civil lines, Mall Road, Majnu ka Tilla,
Timarpur, Nehru Vihar, Mukherjee nagar, Gandhi Vihar, Sant Nagar, Burari, Nathu pura,
Swarup Nagar.
Model Town-1,2&3, Kingsway Camp, Vijay nagar, Gujrawal Town, Darewal nagar,
Ranapratap bagh, Shakti nagar, Kamala nagar, Gulabi bagh, Shastri nagar, Kishanganj,
Pratap nagar, Sabzi Mandi, Malka ganj, Roshanara road, Tis Hazari.
Area’s covered in SHALIMAR BAGH Branch:
Shalimar bagh, Ashok vihar, Pitampura, Rani Bagh, Prashant Vihar, Rohini.
Aadarsh nagar, Azadpur road, jahangirpuri Bhalaswa jharoda, Mukandpur, Burari, Badli,
Haiderpur, Shakurpur.
RDP (Rural Development Program): Alipur, Narela, Bhorgarh, Bawahana, Halambi,
Baktarpur Swaroop nagar, Prahaladpur.
Prime Area’s: Mukherjee nagar, Kamla nagar, model Town-1,2&3, Mall Road, Kingsway
camp, Ranapratap bagh, Sabzi mandi, sahastri nagar. Shalimar Bagh, Ashok Vihar,
Pitampura, Prasahant Vihar, Rohini.
In RDP there is a monopoly of GPI network. GPI is the major player in cigarette there in
the RDP region. Only GPI’s salesman visits the market and controls the market
speculation.
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45. Classification of Outlets:
Depending upon the sales of the outlet in an area the market is divided into SUPER HIGH,
HIGH, MEDIUM, LOW and VERY LOW. This classification gives an idea about the
outlet which product to go for in a particular market.
CLASSIFICATION VOLUME SLAB
SUPER HIGH Rs 3001 and above
HIGH Rs1801 to 3000
MEDIUM Rs 601 to 1800
LOW Rs 301 to 600
VERY LOW Upto Rs300
1. 45
Outlets depending On Their SALES
46. DISTRIBUTOR CHANNEL:
Distributor of the area has a vast knowledge of this industry and is in good relations with
the company since its entry into this trade. Distributor of the area has goodwill in the
market and enjoys healthy relations with all the trade partners i.e. Dealer and Retailer.
Distributor has its own units of supply and a team of determined salesmen’s who all
possess the knowledge and meet the targets of the company timely. Area coverage of the
distributor is from Kashmere Gate to RDP areas of Prahaladpur.
Distributor has its three branches in the areas:
1. BBM Depot(Vijay nagar)
2. Shalimar Bagh
3. Narela
Modern trade of the company is also handled by their branch. In this institution is also
covered.
BBM (Vijay Nagar):
Total universe 735 Outlets
Covered by GPI 717 Outlets
Super high 40 Outlets
High 81 Outlets
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47. Medium 334 Outlets
Low 253 Outlets
Very Low 9 Outlets
Total No. of Salesmen’s= 7
Average no. of Outlets covered per SE=45-50 daily.
Shalimar Bagh:
Total Universe 1345 Outlets
Covered by GPI 1166 Outlets
Super High 75 Outlets
High 171 Outlets
Medium 396 Outlets
Low 397 Outlets
Very Low 127 Outlets
Total no. of Salesmen’s= 13
Average Outlet’s covered per SE= 75-85 Daily.
NARELA (RDP):
Total Universe 40 Outlets
Covered by GPI 38 Outlets
Total No. of SE = 1
All the outlets are covered by him in the particular area. RDP market is dealer dominated
so it is covered in dealer network by the distributor.
1. 47
48. DEALER MARKET: There are total 84 dealers in the north Delhi region being
covered by the distributor weekly. Dealer market contributes to a large portion of sales.
Average no. of dealers covered daily is 12-16.
“I don’t care how many degrees you have on the wall,
If you don’t know how to sell, you’re probably going to starve.”
1.5 Promotion of the Product: The product is new in the market and the
Company GPI is promoting this product using its USP as the Magnesium Carbonate free.
Company is doing its best in promoting the product in all segments through T.V, Radio
and other promotional activities.
Promoting activities adopted by the company is as by the following means: Pcc Team
(Promotional Team), Spot Test, Pos (Temporary point of sales) material given by
company.
PROMOTIONAL TOOLS:
• Pouch Hangers: These are specially designed for the display purpose at the
outlets to catch the notice of a customer. These hangers are tailor made for Rs24/-
sku pack.
1. 48
49. • Temporary POSM: The POSM is distributed to every branch of every
Distributor for the promotion purpose. By this posm all the products promotion is
done on retail outlets by the poster boy provided by company under the guidance of
TMS of every area.
This is a temporary advertising of 1-2 days on retail outlets.
• SHELF STRIP: Shelf strip is used for promotion on tea stall, pan counters of GPI
and other small outlets.
• BUNTING: It is used for the promotions in market and retail outlets on the roof
tops of outlets.
• Dangler: It is used for display purpose on outlets by hanging them on the walls
and side racks of shops.
1. 49
50. Vertical sticker: These are displayed on the counter, side stands and on walls
of outlets.
• Vinyl: These are specially made for the counter display.
• Umbrella: These umbrella’s are best way of promoting the product in markets
where everyone can be made aware of the product.
• While being the part of this project, I got the chance to work for the product and I
tried to do the justice with my project and also tried my best in promoting this
product and for that I have organized various activities as follows:
1. 50
51. 1) Distributing Free Samples to retailers to make the product
availability in the market.
2) Distributing Free Samples to Consumers.
3) Spreading the awareness through POS at Retail Shops.
4) Free sampling of Pan Vilas on prime Rajnigandha Outlets.
5) Spot Test.
Promotional activity of PAN VILAS performed at Mukherjee Nagar.
In this activity I tried my level best to promote the product by using promotional tools
and consumer interaction at retail outlets. In this activity I took the help of SE who
covers that area and is well aware of the product, schemes on brands and knows the
market well. We tried to use his good relations with retailers so that the activity can be
performed to the fullest with the complete support and cooperation from the outlet
owner. In this major target group of Rajnigandha and Pan bahar were covered. The
objective of this promotional activity was to create awareness among the buyers about
the product and its USP i.e. magnesium carbonate free. It helped me in analyzing the
market coverage of Pan Vilas and its competitors.
AIM: Its main aim was to study the consumer behavior, market conditions,
analyzing the leader in sku, creating awareness about Pan Vilas and making people try
this excellent product.
Creating availability of Rs 6/- sku on retail shops and chalking out the reasons for its
low sale and retailer resistance towards this product. For creating availability I have
given free samples to the retailers and have done the spot test and made Rajnigandha
buyer to try this pan masala to switch from old brand to Pan Vilas.
1. 51
52. Consumer interaction and making him try PAN VILAS and use of POS material .
Promoting Pan Vilas by using vinyl and shelf strips. Also gave him free samples of
Pan Vilas.
Consumer interaction and promotion by promotional tools such as: bunting, vinyl,
shelf strip.
1. 52
53. Sampling of PAN VILAS.
Consumer interaction, sampling and use of POSM at retail shop.
1. 53
54. PROMOTIONAL ACTIVITY: This promotional activity was performed at Model
Town 1 and2. In this activity I tried to cover every outlet in the area and promotion was
done in the main market by giving free samples to the consumers and retailers. In this the
target was major RAJNIGANDHA selling shops and the sales of super high and high class
outlets.
The locality is having majority of super high and high class outlets because of high income
group people and their spending potential. This area is prime area and has GPI domination.
AIM: Its main aim was to study the consumer behavior, market conditions,
analyzing the leader in sku, creating awareness about Pan Vilas and making people try
this excellent product.
Creating availability of Rs 6/- sku on retail shops and chalking out the reasons for its
low sale and retailer resistance towards this product. For creating availability I have
given free samples to the retailers and have done the spot test and made Rajnigandha
buyer to try this pan masala to switch from old brand to Pan Vilas.
1. 54
55. Promoting Pan Vilas by using promotional tools such as: Vertical sticker on side box,
Bunting, and direct mouth promotion.
1. 55
56. Promotion at prime locations by using all the promotional tools for product
awareness.
Consumer interaction and sampling of pan masala.
1. 56
57. PROMOTIONAL ACTIVITIES are also carried at Kamla nagar, Indira
vihar and Parmanad colony.
Promotion at karyana store.
Silent promotion through PAN VILAS t-shirt and cap and direct marketing on
outlets.
1. 57
58. I want to thank all those persons which were directly or indirectly were part of these
promotions.
1. 58
59. These promotions were not possible without the constant and selfless help and support of
Area TMS-MR. Rakesh Talwar, all the salesmen of the particular areas for their
cooperation in activities and educating me about the dynamic market conditions and the
Distributor of the area for his support in promotional campaigns.
DISTRIBUTION STRATEGY`S
GPI – 4 TIER
1. 59
GPI`s CFAGPI`s CFA
DISTRIBUTORDISTRIBUTOR
61. ASHOK & CO. – PAN BAHAR – 3 TIER
1. 61
RETAILERRETAILER
CFACFA
DISTRIBUTO
R & DEALER
DISTRIBUTO
R & DEALER
62. KOTHARI BROTHERS - PAN PARAG – 3 TIER
1. 62
RETAILERRETAILER
CFACFA
DISTRIBUTO
R & DEALER
DISTRIBUTO
R & DEALER
63. Distribution strategy and structure of any company plays a major role in its sales.
According to Phillip Kotler Management expert proposed the tier system in market
distribution. All the companies in this trade follow a 3 Tier system i.e. CFA –
Distributor & DEALER- RETAILER.
In this trade pan masala companies’ supply directly to the dealer or retailer from
their Depots till the time there is no shortage of stock. They don’t follow the hierarchy
of three Tier system even. The major drawback is for the distributor of the area as he does
not enjoy the whole market coverage for the whole year. Distributor is benefited from the
sales only at that time when the stock is not there on depots. Salesman of Rajnigandha, Pan
Bahar and Pan Parag though comes to the market twice in every area but they are not from
distributor firm they are the Private Hawkers. The chewing industry primarily focuses on
the profits and net margins of dealers. The distributors of all these companies don’t have
their proper infrastructure and units established.
Whereas the working style and marketing strategy followed by GPI is best of all the
companies and it enjoys good relations with all the dealers and retailers. Only GPI is
following the four-Tier system and follows the proper hierarchy. The distributors of the
company have their units and proper infrastructure established. Salesmen’s have good
relations in the market and also enjoys a large market capture in their areas.
1. 63
RETAILERRETAILER
64. Governing Legislation
• Provision under PFA makes it compulsory for Pan Masala to outline:
List of Ingredients
Addition of flavoring agent
Warning “Chewing of Pan Masala may be injurious to health”
• Provision under standard Weights & Measures Act require declaration of:
Name and address of manufacturer
Quantity and MRP
Complaint redressal
• Food An Drug Administration (FDA) approval required
• Cigarettes and Other Tobacco Products Act(2003) is applicable to cigarettes, Zarda
and Pan Masala containing Tobacco (Gutkha)
Additional duty of excise on pan masala and specified tobacco products
An additional duty of excise is being imposed on cigarettes at specific rates
ranging from Rs. 15 to Rs.180 per thousand cigarettes, and at rate equal to 10% of the
aggregate of normal rates of excise duties on pan masala and certain specified tobacco
products. Biris have been kept out of the purview this levy.
An additional excise duty is being on pan masala and certain specified tobacco
products (notification No.6/2005-CE refers). As regards cigarettes the rates of this
additional duty are as follows (a relevant bill entry refers):
S.No. Description Rate
1. 64
65. Cigarettes Rs. per ‘000 sticks
S.No. Description Rate
1. Not exceeding 60 mm. 15
2. Exceeding 60 mm but not exceeding
70
Mm
45
3. Not exceeding 70 mm. 70
4. Exceeding 70 mm but not exceeding
75
mm.
110
5. Exceeding 75 mm but not exceeding
85
mm.
145
6. Cut tobacco Rs.5 per Kg.
2. OBJECTIVES OF THE PROJECT
The objective of the project has been divided into two parts.
A. Primary objective.
B. Secondary objective.
A.PRIMARY OBJECTIVE
1. 65
66. The primary objective of the project is to find out the issues that are there in the market
when it comes to the marketing, promotion and sales of the product like PAN MASALA.
The basic idea is to figure out the problems of the market in context with the sales,
consumer behavior and availability of the product in the market.
B.SECONDARY OBJECTIVE
The secondary objective of the project is to chart out a plan so that the sales of Pan Vilas
can be enhanced and the effectiveness improved. It aims at the consumer satisfaction and
their preferences. Pan Masala industry has a huge lobby in which dealer and retailers plays
a major role in gearing up the sales and promotion of the product. It is essential to know
their feedback and suggestions to periodically asses the market pulse and derive any
fruitful conclusions.
All these provide a storehouse of knowledge and data- from the Dealer, retailer and
customer so that interpretation can be made for the presentation of a good report.
1. 66
67. 3. RESEARCH METHODOLOGY
The project is a market scan where the purpose was to find out the issues, the deletion of
which would enhance the Sales of PAN VILAS. For this the technique used was
Questionnaire, free sampling, interview and observation while studying the dynamic
market conditions and consumer behavior.
The market area that was assigned was North Delhi. The detailed market condition was first
measured through visiting the retailers and by getting the essential knowledge from the SE of
the areas. Then the issues and problems were found out. The remedies were then implemented
and the effectiveness again was measured to see if the issues are real and the remedies effective
enough.
The survey was conducted to gather the desired information from various Dealers,
Retailers and consumers of Pan Masala.
Scope of Survey in North Delhi
Overview of Survey
The period of our survey is August. The subject of research is stated in the Objective.
The method adopted for this survey was survey method since the main aim was to gain an
insight in to the perceptions of the various Dealers, Retailers and Customers of Pan Masala. A
decision was taken to use the questionnaire method. The questionnaire was thought to be the
most suitable because it allows structured, meaningful and uniform interaction with the
respondent.
The following step enumerates the various stages of this project:
DESIGNING THE QUESTIONNAIRE:
1. 67
68. The first step in the research process was the formation of a questionnaire keeping in
mind with above said objective. A structured, non-disguised questionnaire was drafted
keeping in mind that it will cover the objectives of the project and will serve best to our
requirements.
SAMPLING PLAN
Information is gathered from a sample drawn from different markets in the territory and
the outlets covered in our universe. Major contributing Sampling locations are the prime
areas and also the outlets dominated by competitors.
PROMOTIONAL ACTIVITIES:
Promotion of Pan Vilas is done in Mukherjee Nagar, Model Town 1, 2, Kamla Nagar, Indira
vihar and Parmanand colony. The main aim of this activity was to create awareness
among the consumer; targeting Rajnigandha buyer and Pan Bahar buyer and making
them try this bud tickling pan masala, direct mouth promotion.
This activity also helped in analyzing the weekly sales of different Pan Masala in all the
sku- segments and figuring out the market leader in the respective sku category.
SELECTION OF SAMPLING UNITS:
All sampling units are chosen randomly. These are mainly:
Students
Job Holders
Businessmen
labor
Shopkeepers
Classification and Tabulation of the data:
1. 68
69. The data obtained through the questionnaire was then fed in the computer and
tabulated. The data was needed to be put in graphical form. This was done to facilitate
analysis about the various aspects.
Analysis and Findings:
The data was then analytically and statistically analyzed for different parameters so that
the effectiveness can be achieved and the issues and problems can be resolved for the
enhancement. An assessment as required was then done and inferences were drawn.
Tools Used in Research:
a) Research Design Primary and Descriptive Research
b) Sample Design Dealer, Retailer and Consumer Survey
c) Sampling Unit North Delhi
d) Sample Size 15 Dealers, 40 Outlets and 50
Customers
e) Data Collection Questionnaire Method
1. 69
70. 4. ANALYSIS AND FINDINGS
The analysis part was done by gathering information through interview and observation
while working with TMS in the market, carrying out promotional activities and
observations during my working with the SE of a particular area on his beats. Profound
study of dealer market by visiting the dealers in different areas, extracting desired
information by the questionnaire. There are areas to be pondered upon such as creating
more awareness among consumer, carry out more promotional activities, giving more
profits to dealer in Rs 6/- sku, capturing the sada (plain) market segment by focusing more
on Rs 6/- sku as the buyer of Rs 6/-sku will buy the upper variants, the issues of display to
be resolved with the retailer.
The market coverage and repeats from retail outlets and the dealer market thus gives an
idea about the gravity of performance of the company in the market. By resolving the
issues of retailer and massive promotions among consumers can enhance the sales. The
analysis part is divided in two parts i.e. Analytical analysis and Statistical analysis.
1. 70
71. Analytical analysis
The company GPI is a major player in cigarette industry and with its entry into
chewing industry i.e. pan masala with a bang has definitely shook the competitors.
Company enjoys good market relations with the retailers and has its large market
domination of outlets. Pan Vilas is a new product in the market and is slowly gaining
popularity and customer base.
Feedback of Retailers:
Date code of stock, retailers are constantly complaining about the date of stock
as the consumer is aware and demands for latest stock. This is also because of
the reason that our major competitor Rajnigandha is supplying fresh stock i.e. up
to date in market. Though the product has 6 months expiry period and comes in
a four layered packing to maintain the freshness of supari but because of
competition this issue is there with retailers.
Retailers prefer to keep the stock of Rs 2sku/- as it has gained momentum and is
gaining popularity and capturing the market share of Pan Bahar and Pan Parag.
This affects the visibility and availability which directly hampers the sales of
other SKU’s.
1. 71
72. Retailers are resistant to Rs 6/- and above sku because primarily the large share
of market is captured by mix buyer. The sale in premium segment is not showing
expected high returns and facing constant resistance from retailer.
Issues from dealer side:
Dealer’s complaint about low margin of profit i.e. buying at Rs87 and
selling at Rs 88. Initially the margin was very less before the new
scheme came that is 5 pouches free per MP. Now the sales of Rs2/- sku
have taken a great a momentum. Now the company is offering good
offers on Rs 2/- sku i.e. 50+6+5 per packet (mp) and almost same
scheme is being offered by Pan Bahar and Pan Parag i.e.50+6+scratch
coupon on 5 mp’s offering 10-15 pouch free. Net profit given by GPI
is-23.9% whereas 22.4% by Pan Bahar and 21.3% by Pan Parag.
Company is offering low margin on Rs6/-sku and should focus on this
segment as we are giving lucrative deal to retailers.
Dealer market for premium segment pan masala is only developed of
Rajnigandha, sales of Pan Parag is very low as compared and we are
just covering approx 2% share of total pan masala sale.
Pan Vilas is not having any significant establishment in dealer market
but it is responding well in retail market.
Consumer feedback:
The consumer opinion regarding the quality of product is tremendous they
like the taste and the quality of supari is high.
Rs2/- sku have gained momentum and is creating its customer base as
there are switches in this segment buyer.
Rs6/- sku buyer prefers mix in this segment. 85% consumer of premium
segment pan masala in this category prefers mix.
1. 72
73. ISSUES:
Customer complaint of redness in supari. The reason for this is that
it is magnesium free. The USP of product is not advertised properly
and the consumer is not aware about this. Retailers are not
cooperative in promoting this USP as according to them it is
company’s responsibility.
The color of supari gets changed when mixed with Tulsi as it is
uniquely flavored for Rajnigandha.
The awareness level of Pan Vilas in the consumers of premium
segment needs to be increased.
Company should focus on advertising in public through hoardings
and flex boards as its competitor Pan Bahar is doing. All the prime
locations of central Delhi have the hoardings of Pan Bahar.
The TMS and salesmen of the company are doing a great job and are
completely exploiting their good relations in the retail market. Retailers
respect the relation and are keeping all the sku’s of Pan Vilas to create the
visibility and too aware the customer. SE’s are giving heavy credits on the
Pan Vilas to the retailer.
The display issue of the Marlboro affects the market relations of our company
with the retailers in the market. This was experienced by me while collecting
data for analysis. This directly affects the mutual cooperation from them and
loyalty towards our company. This should be considered and put an extra
effort to resolve this to enjoy the healthy relations and market domination.
Though the company is offering the best and the most lucrative schemes and net
profits to retailers the sales comparatively are not as per the standards. The sales
of Rs 2/- sku has a tremendous response as compared to other sku’s. Product is
new in market and is offering high quality and supari is being appreciated in the
1. 73
74. market by the consumers. In premium segment i.e. Rs6/- and above sku’s it
needs massive promotion and sampling. Consumer switching is easy and
possible in the pan masala industry as compared to cigarette industry.
Statistical analysis
Consumer preference for pan masala in Rs6/- sku.
Prefers mix 85%
Prefers solo 15%
1. 74
75. Objective: To know the consumer preference in premium segment in Rs6/- SKU?
Findings: The major segment of Pan Masala buyer in Rs6/- sku is for mix. The solo
buyer consist of 15% only and the leader in sku with the largest market share and customer
base is Rajnigandha because of its zarda mix i.e. Rajnigandha Tulsi combination.
Availability of brands on no. of outlets in the area.
BRANDS NO. OF OUTLETS
Pan Vilas 842
Ragnigandha 766
Pan Bahar 720
Pan Parag 203
RMD 408
1. 75
76. Objective: To figure out the brand availability status of Rs 6 SKU vis-à-vis the availability
of Rs 2/- SKU in the area?
Findings:
This survey reveals that initially at the time of launch GPI had the visibility on maximum
retail shops.
The SKU of the Pan Vilas Brand is available on 100% of sampled outlets (covered in
survey) whereas the Rs 6/- SKU availability has been 38%.
Availability of Rs 6/- sku in the market.
1. 76
77. Availability Outlets
Visibility on outlets 38%
Non-visibility 62%
Objective: To find out the visibility and stock of Rs6/- sku?
Findings: The survey was conducted in August to check out the repeat sale and visibility
of product in retail market. The study reveals that the sale of Rs6/- sku has not shown the
hike as compared to Rs2/- sku. The retailer is resistant even though good schemes are
operated by company in this segment i.e. Red&White free on empty packet.
Availability of Rs 24/- sku in market.
Availability on outlets 27.5%
Non- availability 72.5%
1. 77
78. Objective: To check out the availability of Rs 24/- sku?
Findings: As according to survey Rs24/- sku is present only at the super high and high
class outlets. This is a premium category and has a loyal customer.
Net margins to retailers and price comparator.
Pan Vilas 38.6%
Pan Bahar 31.1%
Pan Parag 34%
1. 78
79. Comment: GPI is giving maximum profit to retailer in this segment i.e.38.6%.
Company is giving 7.5% and 4.6% more profits to retailers as compared to Pan
Bahar and Pan Parag respectively.
Pan Vilas 29.6%
Rajnigandha 20%
Pan Parag 20%
Comment: GPI is giving maximum profit to retailer in Rs6/- segment.
Company is giving 9.6% extra margin.
1. 79
80. Comment: GPI is offering lucrative scheme on box i.e.25+1+4 and other companies are
offering 25+1 and giving maximum retail profit of 34%.
1. 80
Pan Vilas 34%
Rajnigandha 15.5%
Pan Vilas 16.6%
Pan Vilas 33.33%
Rajnigandha 8.29%
Pan Parag 20%
81. Comment: In Rs120/- segment Pan Vilas is offering maximum profit to retailer i.e.
33.33%.
whereas Pan Parag is giving 20% and Rajnigandha 8.29%.
Net margins to DEALER and price comparator.
Pan Vilas 23.9%
Pan Bahar 22.4%
Pan Parag 21.3%
COMMENT: As per this survey GPI is giving maximum profit i.e. 23.9% which is
highest as compared to competitors.
1. 81
82. COMMENT: In Rs6/- sku Pan Parag is giving maximum profit to the dealer i.e. 8.33%.
Company should focus on dealer margins in Rs6/- sku segment to increase sales.
Comment: As per survey Pan Vilas is giving maximum profit i.e. 23.9% in this segment.
There is significant difference in profit margins of Pan Parag i.e.7% and Rajnigandha’s
6.6%.
1. 82
Pan Vilas 5.26%
Rajnigandha 5.69%
Pan Parag 8.33%
83. Comment: As per survey Pan Vilas is giving maximum profits to the dealer i.e. 18.07%
as compared to the competitors.
There is a major gap of margins as per analysis GPI is giving 15.51% and 15.77% more
then Pan Parag and Rajnigandha respectively
1. 83
Pan Vilas 18.07%
Pan Parag 2.56%
Rajnigandha 2.3%
84. Estimated Sales of Pan Masala in market in each segment.
Series1- Dealer
The sales data is the estimation of average sales per week in Rs2/- sku in packets:
Pan Bahar 215-230
Pan Vilas 4-6
Pan Parag 15-25
Series2- Retailer
The sales data is the estimation of average sales per week in Rs2/- sku in pouches:
Pan Bahar 105-120
Pan Vilas 35-45
Pan Parag 55-65
1. 84
85. Comment: In dealer market the market holding of Pan bahar is maximum and is sku
leader in Rs2/- segment. Pan Parag has a moderate market share in Plain segment. Pan
vilas is a new product and is adding to only 2%-3% of total market sales in dealer market.
In retail market Pan Bahar is the the leader in Rs 2/- sku segment and is enjoying a large
market share and a loyal customer base as well. Whereas Pan Parag sales and Pan Vilas
sales don’t have any significant difference. In Rs2/- sku Pan Vilas is capturing market of
competitors and is gaining popularity among consumers.
DEALER SALE
The sales data is the average sales per week in packets:
Rajnigandha 175-200
Pan Parag 40-50
Pan Vilas 1-3
RETAIL SALE
The sales data is the average sales per week in pouches:
Rajnihandha 120-130
1. 85
86. Pan Parag 30-40
Pan Vilas 12-15
COMMENT: As per survey Rajnigandha is the leader in Rs6/- sku segment.
Pan Parag is having a moderate market share whereas Pan Vilas has avery low dealer
market developed .
In retail market also Ranigandha is the king and enjoys the large market and customer
base. Pan Parag is having a market develop for Rs6/- sku but it varies in different market.
Pan Vilas market capture is very low as compared to competitors and is only giving 2% of
total sales of Rajnigandha.
DEALER SALE
The sales is the estimation of average sales per week in boxes:
Rajnigandha 35-40
Pan Vilas 1-2
Pan Parag 8-12
RETAIL SALE
The sales is the estimation of average sales per week in zipper:
1. 86
87. Rajnigandha 16-20
Pan Vilas 1-3
Pan Parag 5-10
COMMENT:As per survey Rajnigandha is leader in zipper sale. Rajnigandha has its
monoploly in premium segment. Whereas Pan Vilas sales are very low as compared . Pan
Vilas is a new product and is creating awareness in premium segment by creating its
customer base becuse customer in this segment is loyal .
DEALER SALE
The sales is the estimation of average sales per week in box:
Rajnigandha 10-15
Pan Parag 4-8
Pan Vilas 1
RETAIL SALE
The sales is the estimation of average sales per week in tins:
1. 87
88. Rajnigandha 4-6
Pan Parag 2-3
Pan Vilas 1-2
COMMENT:As per survey Rajnigandha leads the market followed by Pan Parag. Pan
Vilas market is negligible in Rs 120/- segment.
1. SUGGESTIONS FOR THE ENHANCEMENT OF SALES
Company should focus on the mix i.e. zarda buyer to capture the market in Rs6/- sku
segment company should launch its bud tickling excellent flavor of zarda which is
essentially scented to enhance the taste of Pan Vilas. This will appeal the mix buyer
in the market.
Free sampling of Pan Vilas at the crowded places where pan masala buyer is in large
scale such as Railway stations, ISBT and Metro stations.
Company should focus on the issues related to the redness in supari as in this trade it
is considered to be moisture in supari and it’s of low quality. Company should work
on the color of supari giving it a light shade with the touch of white color in it.
Company should give more schemes on Rs 6/- sku and follow the trend line in
market by giving schemes such as scratch coupon and target incentive schemes.
Company should also focus on giving more margins to dealer in Rs6/- sku as other
competitors are giving more margins then Pan Vilas.
Company should target the 50 top selling Rajnigandha outlets in an area and promote
the product by free sampling, comparative analysis and its USP on these outlets.
1. 88
89. Pan Vilas should make its net presence by launching its own website and creating
accounts on twitter and Face book. This will enable the company to connect with
youth directly.
Massive promotion of Pan Vilas in the areas with the high footfall of young pan
masala consumer in the areas of university campus and Kamla Nagar.
Advertisement of the product should be done on a massive scale on roads and in
markets to create awareness, through hoardings on the prime locations, signboards,
Posters in windows and on notice boards, and in staff rooms of local businesses. A
promotional stall at a local car-boot market or county show. A stall or leafleting
presence at a local relevant gathering or event. We can also target the poster sites
such as: Radio taxi, buses and roadside fields.
PR - public relations and using press-releases for free
advertising and publicity
Regularly giving news and interesting pictures about your work
to your local newspaper or perhaps even writing a regular
column relating to your specialism in the local free newspaper
or parish magazine.
All newspapers need press releases to help fill their pages.
Local papers particularly need news submitted by the local
community and are always ready to publish the column of a
MNC in their newspaper.
1. 89
90. .
2. CONCLUSION
The pan masala industry is well developed and has large customer base in the area. Pan
Vilas is an excellent product and is gaining popularity in all the segments and is creating a
loyal customer base in Rs2/- sku which is a tremendous achievement initially. In Rs 6/- and
above sku segments requires promotions on large scale and free sampling at the places
with a heavy footfall of pan masala buyer and potential buyer.
Pan Vials is offering the best schemes in the industry and is giving maximum profits to the
retailers.
GPI is having the best distribution policy i.e. 4 tier and follows hierarchy in the market.
This enables to exercise affective control over retail market with maximum frequency.
1. 90
91. The biggest competitor is Pan Bahar in Rs2/- sku and Rajnigandha in Rs6/- and above
sku.
These both are very old players in market and enjoy a large market share with a loyal
customer base. The major buyer in Rs 6/-sku of Rajnigandha prefers mix i.e.
Rajnigandha Tulsi. It consists of 85% consumer in premium segment pan masala.
Pan Vilas has captured the market share and customer base of Pan Bahar and Pan Parag in
Rs2/- sku and is enjoying a great response in market from the consumer and is being
appreciated.
Company should emphasis on dealer market as well, as response in dealer market is very
low as compared to retail market. Company is offering heavy schemes in all segments but
should focus on Rs6/- sku and give more schemes and net profit to increase the sales.
The major competitor is Rajnigandha in premium segment and to counter its sales.
Company should consider to emphasis on launching its bud tickling ZARDA uniquely
scented enhancing the flavor of Pan Vilas and the taste buds of consumer to capture the
premium segment category. Company should focus on massive promotional activities and
advertising through various media’s.
The product is gaining popularity and is offering high quality supari and is receiving
appreciation form the consumer. It’s a new product and will capture the market in near
future with the dedicated effort.
3. REFERENCES
Philip Kotler, 2006, Principals of marketing, 13th
Edition, Prentice-Hall of India, New
Delhi.
Naresh K. Malhotra, 2007, Marketing Research- An Applied Orientation, 5th
Edition,
Prentice-Hall of Inida, New Delhi.
1. 91
92. Mr. Ashish Sood (ASM), Godfrey Phillips India LTD, New Delhi
Mr. Rakesh Talwar (TMS), Godfrey Phillips India LTD, New Delhi
MR. Vikas Kumar (TMS), Godfrey Phillips India LTD, New Delhi
M/S Nand Kishore Monga Foods Pvt Ltd., New Delhi
Mr. Suresh Sharma (SE), M/S Nand Kishore Monga Foods Pvt Ltd., New Delhi
Mr. Vipin Kumar(SE), M/S Nand Kishore Monga Foods Pvt Ltd., New Delhi
Website: <www.modi.com>
<www.panbahar.com>
<www.panparag.com>
< www.dsgroupindia.com/rajnigandha.html >
ANNEXURE
1. 92
94. QUESTIONNAIRE FOR CONSUMER
S.NO
Name of
Customer Age
Occupation -
Service / Business
No of Years consuming
Pan Masala
Current Brands and SKU (Rs 2, 6,
24, 120) Mixer / Solos
2. 94
96. QUESTIONNAIRE FOR RETAILER
2. 96
Consumption in a day
Aware of PAN
Vilas
Awareness
Medium
Awareness level of USP
(MgCo3)
Tried PAN
VILAS
Reason For
Preference
1) TV
2) Radio
3) Direct Contact
4) Retailer
5) Others
97. Continue…(Page 2)
2. 97
S.
N
O
Name
of
Retail
er
Addre
ss
Coverage Status (Y/N)
If Not Covered Do they Sell
Brands of Following
Companies
If Covered what is the coverage
frequency (Daily/ Weekly/ Monthly)
DS
Gro
up
Ashok &
Compan
y
GPI
RM
D
Kothar
i
DS
Group
Ashok &
Compan
y
GP
I
RM
D
DS
Grou
p
Ashok
&
Compa
ny
GPI
RM
D
Kotha
ri
SKU
1
2/2
,5
6
24
120
2
2/2
,5
6
24
120
98. Continue…(Page 3)
2. 98
Availability Status For
brand in different price
segment
SKU
Scheme
Awarenes
s for Pan
Vilas SKU
Schemes currently operated on
different SKU by Companies
Credit Period of Companies (Approx -
No credit, Weekly, fornightly,
monthly)
SKU
DS
Gr
ou
p
Asho
k &
Com
pany
G
P
I
RM
D
Kot
hari
DS
Group
Ashok &
Compan
y
GP
I
RM
D
Koth
ari
DS
Group
Ashok &
Compan
y
GPI
RM
D
Koth
ari
2/2,
5
2/2,
5
2/2,
5
6 6 6
24 24 24
120 120 120
2/2,
5
2/2,
5
2/2,
5
6 6 6
24 24 24
120 120 120
99. Estimated Sales for different SKU ( For analyzing the leader
in the SKU)
Reason for Low Volume for
Rs 6 and above SKU.
Scheme Recommendation / Scheme
implemented earlier by Pan Masala
Company that had lead to generating
volumeDS Group
Ashok &
Company
GPI RMD Kothari
QUESTIONNAIRE FOR DEALERS
2. 99
100. S.NO
Name of
Dealer Address
Coverage Status (Y/N)
If Not Covered Do they Sell Brands of Following
Companies
DS
Group
Ashok &
Company
GPI RMD Kothari
DS
Group
Ashok &
Company
GPI RMD Kothari
1
2
3
4
Continue.. (Page 2)
2. 100
101. Availability Status For brand in different price segment Schemes currently operated on different SKU by Companies
SKU
DS Group
Ashok &
Company
GPI RMD Kothari
SKU
DS Group Ashok & Company GPI RMD Kothari
2/2,5 2/2,5
6 6
24 24
120 120
2/2,5 2/2,5
6 6
24 24
120 120
2/2,5 2/2,5
6 6
24 24
120 120
2/2,5 2/2,5
6 6
24 24
120 120
Continue…(Page 3)
2. 101
102. Credit Period of Companies (Approx - No credit, Weekly,
fornightly, monthly)
SKU
Estimated Sales for different SKU ( For analyzing the
leader in the SKU)
SKU
DS Group
Ashok &
Company
GPI RMD Kothari DS Group
Ashok &
Company
GPI RMD Kothari
2/2,5 2/2,5
6 6
24 24
120 120
2/2,5 2/2,5
6 6
24 24
120 120
2/2,5 2/2,5
6 6
24 24
120 120
2/2,5 2/2,5
6 6
24 24
120 120
Continue…(Page 4)
2. 102
103. Purchase Price
SKU
Selling Price to Retailers
Scheme Recommendation / Scheme
implemented earlier by Pan Masala
Company that had lead to generating
volume
DS
Group
Ashok &
Company
GPI RMD Kothari
DS
Group
Ashok &
Company
GPI RMD Kothari
2/2,5
6
24
120
2/2,5
6
24
120
2/2,5
6
24
120
2/2,5
6
24
120
2. 103
