STUDY OF CUSTOMER AWARENESS & CLIENT GENERATION FOR GODREJ IN TEA/COFFEE VENDING MACHINE BUSINESS

A study conducted for Godrej & Boyce MFG. LTD.

Under the guidance of

Prof. Atanu Mandal & Dr. Radhika Dixit

ByAkshay Munot Roll no. 29 Div. A2

Company profile
Godrej & Boyce Mfg. Ltd. is one of the largest privately-held diversified industrial corporations in India. The Company established in 1897 by a young man named Ardeshir Godrej. Vision Godrej is in every home and workplace. Mission Enriching quality of life everyday everywhere. Fiscal Year 2011-12 Rs. 66 billion (US$1.2 billion) Combined Sales of the Company and its major subsidiaries and affiliates for FY 2011-12 Rs. 184 billion (US$3.3 billion)

Sales

OBJECTIVES OF RESEARCH: To study the operations of Godrej with regard to vending machine.

To know about competitors position in vending machine operations.

To understand the client base of vending machine purchasers. To find out countermoves of Godrej vending machine. To recommend the measures to improve demand for Godrej vending machine.

RESEARCH METHODOLOGY
PRIMARY DATA- The primary data has been collected through questionnaires and interview. SECONDARY DATA- The secondary data has been gathered through various published and unpublished sources such as historical documents, public documents, records of sales, budget, advertisement, etc. RESEARCH DESIGN- Descriptive Method of Research.

SAMPLING:
SAMPLING FRAME- Organizations in Viman nagar, Yerwada, Kharadi, Kalayani nagar, Magarpatta, and Band garden. SAMPLING METHOD - Non probabilitic convenience sampling SAMPLE SIZE - 200 Facility Managers of Various organization. SAMPLE UNIT - Facility manager of organization.

THE LINE OF BUSINESS.

No. of firms
Sr No. 1 2 3 4 5 6 7 Various Business Logistic & warehouse manufacturing & packing IT & software insurance sector sales, marketing & trading real estate & construction healthcare No. of firms
1% 1% 2% 1%

Logistic & warehouse

4%

2 8 176 6 3 4 1

3%

manufacturing & packing

IT & software insurance sector sales, marketing & trading
88%

real estate & construction

According to the data from the above figure it can be seen that mostly the IT & Software sector has been covered under this survey. What follow is the Manufacturing, Sales, Insurance, Logistics and Warehousing Sector & Real Estate & Constructions Sector. This will be Obvious from the data about the sectors given above.

THE EMPLOYEE STRENGTH.

No. of companies
sr. no employee strength No. of companies
11% 31% 7% less then 40 40-100 100-150 150 & above

1 2

less then 40 40-100

22 14

3 4

100-150 150 & above

102 62

51%

The employee strength of most of the business concerns covered under this survey was 100-150 (51%). Then follow the Business Concerns who have Employee strength of more than 150, 40-100 & less than 40.

USING VENDING MACHIME/S OR NOT.

No. of companys.
sr. no. Answers No. of companys.
16%

Yes

169

Yes
No

No

31
84%

It is observed from this data that 16% of the Business Concerns covered under this Survey are not using Vending Machine/s whereas 84% of them are using vending machines for providing the Tea/Coffee facilities to the Employees.

ASSOCIATION WITH THE VENDING MACHINE IN CASE OF THE CONCERNS USING THEM.

Sr. no. 1 2 3 4

No. of years 0-2yrs 2-4yrs 4-6yrs 6yrs and above

No. of companys. 89

No. of companys.
2%

11%

57 19 4
34% 53%

0-2yrs 2-4yrs 4-6yrs 6yrs and above

It is observed from this data that mostly the various Business Concerns had been using their Vending machine/s from 2 years or less than that. Those which had been using their machines for 2 to 4yrs, 4 to 6yrs, 6yrs & above are as above.

TYPES OF VENDING MACHINES USED IN THE BUSINESS.

Sr.no

Type of machine

No.of companys.

No.of companys.
2% 13% PREMIX BASED BEAN TO CUP

PREMIX BASED

143

BEAN TO CUP

22

RECIPE BASED

4
85%

RECIPE BASED

It is inferred from this data that mostly, in the market, the Premix type of Vending machines were found (Around 85%). What follows is the Bean to cup & the Recipe Based Vending Machines found in the market.

TYPES OF PROCUREMENT OF THE VENDING MACHINES

No.of companys.

12%

Sr. no

Type of purchase

No.of companys.
OUTRIGHT PURCHASE RENTAL BASIS

OUTRIGHT PURCHASE

148
88%

RENTAL BASIS

21

It is observed from the given data that 88% of the Business Concerns use their Vending Machines on Outright Purchase Basis & 12% of them use them on Rental Basis. It is important to note here that most of the Business Concerns Prefer using their Vending Machines on Outright Purchase Basis than on Rental Basis.

MARKET SHARE OF THE VARIOUS BRANDS (DATA HOLDS FOR THE TOTAL NUMBER OF VENDING MACHINES USED)
Market Share Of Brands Nescafe Lipton CCD Godrej Fresh n Honest Chai Coffee Service 57 31 69 5 5
18% 41% 34%

Market Share Of Brands

1% 3% 3% Nescafe Lipton CCD Godrej Fresh n Honest Chai Coffee Service

This data gives an indication that most of the market share of the Vending machines is taken by Nescafe, Lipton, CCD. In terms of Premixes, Nescafe & Lipton are the prime players. Godrej, out the Business Concerns Covered under the survey only has 3% of the market, which is same as fresh & honest, but it seems that it has more recognition in the market as compared to Godrej right now.

NO. OF VENDING MACHINES USED BY THE VARIOUS CONCERNS UNDER THIS SURVEY.

Number of Vending Machine Zero One Two Three and above 31 107 49 13

Number of Vending Machine

7% 15% Zero One Two Three and above 53%

25%

It is found that mostly, in the Business Concerns covered under the Survey, one or two vending machines are used. A detailed information is available above. Still 15% companys are not using vending machine.

TYPES OF SERVICE PROVIDERS FOR THE VENDING MACHINES

Service Provider
Service Provider
6%

Original Manufacturer distributor Dealer 3rd Party Vendor

57 89 12

7% 34% Original Manufacturer distributor Dealer 3rd Party Vendor 53%

11

It is observed that mostly the distributors are the Service Providers in the Market. (53%). Original manufacturer & dealers, 3rd party are follow. See the Percentage data above.

DATA OF CUP PER DAY.

Cupage Per Day
7%
11% Less than 50 50 to 100 58% 24% 101 to 200

Cupage Per Day Less than 50 50 to 100 12 19

101 to 200
Above 200

41
97

Above 200

It is observed that the Cuppage per day for 7% of the Business Concerns is Less than 50, again 11% have 50-100 cuppage per day, 24% have cuppage of 101-200 per day, 58% have above 200. Thus, mainly,The cuppage per day for the Business Concerns Covered under the survey is above 169.

FREQUENCY OF DRINKS CONSUMPTION PER DAY.

Frequency Of Consumption Once Twice Thrice Frequently 39 112 23 24

Frequency Of Consumption
12% 12% 20% Once Twice Thrice Frequently 56%

It is observed from the data that mostly (Half a Percentage), the Business Concerns covered under this Survey have frequency of Drinks Consumption as Twice a day. (56%). Then follow Thrice & Once. Only 12% have frequent Drinks Consumption per day.

RESPONSIBLE FOR DAILY MAINTENANCE/CLEANING/REFILLING, ETC OF THE VENDING MACHINES.

Daily Maintenance
Daily Maintenance

1) Customer

79
53%

47%

Customer Service Provider

2) Service Provider

90

The above graph shows that in 47% of the cases, the customer did the daily maintenance, cleaning, refilling himself while as in 53%, the Service provider did it.

FREQUENCY OF SERVICING FOR THE VENDING MACHINES.

maintainance frequency
maintainance frequency
7%

Daily

47

28% Daily

Weekly

109

Weekly Monthly

Monthly

12

65%

It is inferred from the above data & chart that mostly, the vending machines are getting serviced weekly (565% of the cases) in the different business concerns. Then follows the daily service (28%), monthly (17%). It has been observed during the survey that the frequency of the servicing is one of the important determinants of the service quality offered by a particular brand in the market. So, this is an important factor to consider.

LIMITATION
Less awareness among the people about the Godrej vending machine. Compared to other competitors the prices are higher. The respondents were facility manager of company and mostly they were busy so time taken to interview with them was too much.

SUGGESTIONS TO THE COMPANY

By hiring more no of aggressive sales executive from local area like pune itself as language culture matters most in sales.

Cut down monthly rental charges.

Offer better service & timely delivery of premixes. As in this research work found most of the companies had problem with their current vendor on this issue.

To improve its sales through channel it can engage market known big dealers rather than small dealers as Godrejs vending machine products are not known much in the consumer market.

CONCLUSION
In current market, major market share is under Ccd and NESTLE in terms of premix . In terms of fresh milk major player is CAF COFFEE DAY. Fresh milk will be much more favored than premixes in the long run of the business. Better projected as a time saving and easy use convenience offering machine. IT and ITES section gives the maximum client-revenue generation opportunities. To maintain equal business in summer, companies are planning to start cold beverages option in summers.