Nutrine Retail Stores

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INTRO about retail stores(2pages)

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Retail stores on the basis of retail format & give reason

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porter's analysis

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supply chain management

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CRM &VSP

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Visual merchandising or layout attraction (store relevant)

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pricing-discount

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any general strategy

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conclusion

The following kinds of retail formats are found in India: •

Mom-and-pop stores: These are generally family-owned businesses catering to

small sections of society. They are small, individually run and handled retail outlets. •

Category killers: Small specialty stores have expanded to offer a range of

categories. They have widened their vision in terms of the number of categories. They are called category killers as they specialize in their fields, such as electronics (Best Buy) and sporting goods (Sport Authority). •

Department stores: These are the general merchandise retailers offering various

kinds of quality products and services. These do not offer full service category products and some carry a selective product line. K Raheja's Shoppers Stop is a good example of department stores. Other examples are Lifestyle and Westside. These stores have further categories, such as home and décor, clothing, groceries, toys, etc. •

Malls: These are the largest form of retail formats. They provide an ideal shopping

experience by providing a mix of all kinds of products and services, food and entertainment under one roof. Examples are Sahara Mall, TDI Mall in Delhi. •

Specialty Stores: The retail chains, which deal in specific categories and provide

deep assortment in them are specialty stores. Examples are RPG's Music World, Mumbai's bookstore Crossword, etc. •

Discount stores: These are the stores or factory outlets that provide discount on the

MRP items. They focus on mass selling and reaching economies of scale or selling the stock left after the season is over.

•

Hypermarkets/ Supermarkets: These are generally large self-service outlets,

offering a variety of categories with deep assortments. These stores contribute 30% of all food and grocery organized retail sales. Example: Big Bazaar. •

Convenience stores: They are comparatively smaller stores located near residential

areas. They are open for an extended period of the day and have a limited variety of stock and convenience products. Prices are slightly higher due to the convenience given to the customers. •

E-tailers: These are retailers that provide online facility of buying and selling

products and services via Internet. They provide a picture and description of the product. A lot of such retailers are booming in the industry, as this method provides convenience and a wide variety for customer. But it does not provide a feel of the product and is sometimes not authentic. Examples are Amazon.com, Ebay.com, etc. •

Vending: This kind of retailing is making incursions into the industry. Smaller

products such as beverages, snacks are some the items that can be bought through vending machines. At present, it is not very common in India. Supply Chain management Excellent retail supply chain management revolves around understanding and balancing three key dimensions of availability, inventory and cost. Managing these trade-offs efficiently can result in supply chains that improve business performance and drive competitive advantage. One example: Spanish retail giant Zara. At Zara the supply chain is the business model. Rapid growth and profitability are clearly linked to an uncompromised approach to supply chain management that has delivered a world class three week "design to shelf" capability and fuelled the company's 20 percent annual growth and profit margins. UK food retailer Tesco has developed continuous, within day, replenishment capabilities to underpin their fresh food offer and consistently deliver on-shelf availability of more than 98 percent. For these retailers, supply chain is a strategic differentiator that delivers a competitive edge. No longer just concerned about cost control, companies view supply chain as a key element of their business strategy. Today's supply chain leaders are working with their business partners to design, develop, move, store, sell and service their products with ever greater speed and economy. Now, more than ever, supply chains are regarded as sources of business value and competitive advantage. Differentiated supply chain models are emerging to address different merchandise characteristics. "One size fits all" no longer applies. Short-lifecycle fashion products require a supply chain that can cope with fast lead-times and accelerated

time-to-market — tight integration with the supply base is critical. Repeatable continuity products demand integrated and optimized replenishment and forecasting. Regardless of type, all supply chains need to be supported by effective core processes and capabilities. Supply chain leaders develop robust basic processes and disciplines, and then add new and differentiating capabilities that drive supply chain excellence. These new capabilities enable leading retailers to transform and differentiate their supply chains. Creating change in an existing supply chain can be daunting. Given the breadth and depth of impact, virtually all areas of a business are affected. Accenture can offer a range of services from providing advice on specific functional areas including case studies and insights into other retailers and your competition to helping to implement a complete supply chain transformation. Any general strategy – get from this para It's going where no mnc confectionery brand has gone or even wants to. Nutrine is getting into the fruit bar segment in a big way, aiming for rs 50 crore in sales by march 2004 from its naturo brand. about 20 per cent of this revenue is expected to come from exports. naturo mango bar has been around for 12 years but the company has now relaunched it with a new look and taste, and introduced two additional flavours, pineapple and orange-papaya. v. dinesh reddy, director,Nutrine confectionery company, told the times of india that sales of naturo are a negligible rs 2.5 crore a year now, but the company believes the brand has immense potential. within the next few months, nutrine plans to introduce apple, guava, grape and mixed fruit bars under the naturo brand. twin-layered bars of caramel and fruit pulp and cream centre-filled bars are proposed to be launched in a year. as of now, the fruit bars market is estimated to be between Rs 5-7 crore per annum. "naturo may compete with chocolate bars as a snacking choice but here too, its pricing at rs 4, may prove an advantage," reddy said. naturo is also seen to have major export potential. it has been positioned as a fun and health product which uses 100 per cent fruit pulp. since natural products are popular in developed markets, nutrine is confident this usp of the brand will work. "we want to sell naturo as a terrific snacking product," reddy said. nutrine confectionery, which had hitherto never focused on exports, is now targeting markets in europe, the us and south asia. the rs 170-crore company's export turnover is currently rs 3 crore and comes mainly from africa and saarc countries. "we are now giving a thrust to exports because the last 15 months have seen a decline in the organised indian confectionery market owing to the steep excise duty hike of 816 per cent," reddy said.nutrine recently acquired a completely automated plant in bangalore for Rs 8 crore exclusively for the naturo line.

CRM Customer relationship management (CRM) is a broadly recognized, widely-implemented strategy for managing a company’s interactions with customers, clients and sales prospects. It involves using technology to organize, automate, and synchronize business processes— principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service. Customer relationship management denotes a company-wide business strategy embracing all client-facing departments and even beyond. When an implementation is effective, people, processes, and technology work together to increase profitability, and reduce operational costs.

The three phases in which CRM help to support the relationship between a business and its customers are, to: 

Acquire: a CRM can help a business in acquiring new customers through excellent

contact management, direct marketing, selling and fulfillment.[3] 

Enhance: a web-enabled CRM combined with customer service tools offers

customers excellent service from a team of trained and skilled sales and service specialists, which offers customers the convenience of one-stop shopping.[3] 

Retain: CRM software and databases enable a business to identify and reward its

loyal customers and further develop its targeted marketing and relationship marketing initiatives.

Strategy For larger-scale enterprises, a complete and detailed plan is required to obtain the funding, resources, and company-wide support that can make the initiative of choosing and implementing a system successful. Benefits must be defined, risks assessed, and cost quantified in three general areas: 

Processes: Though these systems have many technological components, business

processes lie at its core. It can be seen as a more client-centric way of doing business, enabled by technology that consolidates and intelligently distributes pertinent information about clients, sales, marketing effectiveness, responsiveness, and market trends. Therefore, a company must analyze its business workflows and processes before

choosing a technology platform; some will likely need re-engineering to better serve the overall goal of winning and satisfying clients. Moreover, planners need to determine the types of client information that are most relevant, and how best to employ them.[2] 

People: For an initiative to be effective, an organization must convince its staff that

the new technology and workflows will benefit employees as well as clients. Senior executives need to be strong and visible advocates who can clearly state and support the case for change. Collaboration, teamwork, and two-way communication should be encouraged across hierarchical boundaries, especially with respect to process improvement.[10] 

Technology: In evaluating technology, key factors include alignment with the

company’s business process strategy and goals, including the ability to deliver the right data to the right employees and sufficient ease of adoption and use. Platform selection is best undertaken by a carefully chosen group of executives who understand the business processes to be automated as well as the software issues. Depending upon the size of the company and the breadth of data, choosing an application can take anywhere from a few weeks to a year or more.[2]

USP The Unique Selling Proposition (also Unique Selling Point or USP) is a marketing concept that was first proposed as a theory to explain a pattern among successful advertising campaigns of the early 1940s. It states that such campaigns made unique propositions to the customer and that this convinced them to switch brands. The term was invented by Rosser Reeves of Ted Bates & Company. Today the term is used in other fields or just casually to refer to any aspect of an object that differentiates it from similar objects. A number of businesses and corporations currently use USPs as a basis for their marketing campaigns.

“a fun and health product which uses 100 per cent fruit pulp” About the company Godrej Hershey (GHL) operates in Food and Beverages space. Formed in 2007, a Joint Venture (JV) between The Hershey Company (USA) and Godrej Group, GHL operates in multiple categories such as confectionery, beverages, and grocery items.

Nutrine Confectionery company, one of the leading players in confectionery market, was acquired by Godrej in 2006, and forms a key portfolio for Godrej Hershey today. The Nutrine portfolio has products like Maha Lacto, Maha Choco, Nutrine Eclairs, Nutrine Lollipop, Nutrine Santra Goli, Aasay, Kokanaka and Honeyfab in the hard candy, éclairs, toffee, lollipop and roll formats. The confectionery factory is located in Chittoor (Andhra Pradesh). The Beverage portfolio consists of Jumpin (Fruit Drinks), Xs (Juices and Nectars) and Sofit (Soya Milk). Sofit is the market leader in the niche but fast growing soyamilk market. The Hershey Chocolate syrup was added to the beverages portfolio in 2008. The beverages factory is located in Mandideep (Madhya Pradesh), and is one of the largest tetrapak units in India. With GHL has four Regional Sales Offices based at Mumbai, Delhi, Chennai and Kolkata. The organization has a strong sale force of 500 people reaching to more than a million retail outlets

through

1500

distributors

spread

across

expanse

of

India.

GHL has an aggressive growth plan to evolve as the market leader in Food & Beverage space in India. Strong product innovations, brand building, and investments in improving people and process capabilities would form critical aspects of future growth strategy for the organization. The Hershey Company (NYSE: HSY) is the largest North American manufacturer of quality chocolate and sugar confectionery products. With revenues of nearly $5 billion and more than 13,000 employees worldwide, The Hershey Company markets such iconic brands as Hershey's, Reese's, Hershey's Kisses, and Ice Breakers. Hershey is the leader in the fastgrowing dark and premium chocolate segment, with such brands as Hershey’s Special Dark, Hershey’s Extra Dark and Cacao Reserve by Hershey’s. Hershey’s Ice Breakers franchise delivers refreshment across a variety of mint and gum flavors and formats. In addition, Hershey leverages its iconic brands, marketplace scale and confectionery and nut expertise to develop and deliver substantial snacks, including Hershey’s and Reese’s single-serve cookies and brownies, and value-added snack nuts, including Hershey’s Milk Chocolate Covered Almonds and Hershey’s Special Dark Chocolate Covered Almonds. Hershey also offers a range of products to address the health and well-being needs of today's consumer. Hershey’s and Reese’s Snacksters offer consumers great-tasting snacks in portion-controlled servings,

while Hershey’s dark chocolate offerings provide the benefits of flavanol antioxidants. In addition, Artisan Confections Company, a wholly owned subsidiary of The Hershey Company, markets such premium chocolate offerings as Scharffen Berger, known for its high-cacao dark chocolate products, Joseph Schmidt, recognized for its fine, handcrafted chocolate gifts, and Dagoba, known for its high-quality natural and organic chocolate bars. Visit us at www.hersheynewsroom.com. About Godrej Hershey Ltd Godrej Hershey Limited (GHL) is a JV of the Hershey company with the Godrej group based in Mumbai. Godrej is one of India’s most respected business conglomerates with a turnover of Rs. 6000 crore (US$ 1.4 Billion). In June 2006, Godrej Foods & Beverages Limited acquired India’s leading confectionery player, Nutrine Confectionery Company Private Limited. The core business of GHL is Confectionery, Beverages & Chocolates. The Nutrine Confectionery portfolio is a significant player in the India sugar confectionery market led by hard candy leader product Mahalacto. The brand ambassador of Nutrine portfolio is India’s cricket captain MS Dhoni. The Beverages portfolio is led by Sofit which is a pioneer and market leader in the emerging Soymilk category and Jumpin is a strong player in the highly competitive fruit drink category. The company has rolled out the iconic ‘Hershey chocolate syrup’ which is now made in India. Godrej Hershey Ltd has its head office in the sprawling Godrej Industries campus in the eastern suburb of Vikhroli in Mumbai, India. It has three manufacturing locations. The Mandideep unit near Bhopal in Madhya Pradesh is India’s largest Tetrapak plant. It manufactures Jumpin, Xs and Sofit. The Chittoor plant in Andhra Pradesh is India’s largest unit for producing hard boiled candy, éclairs & toffees. The Nalagarh plant in Himachal Pradesh produces éclairs. The company has regional offices in Chennai, Delhi & Kolkata and a team of over 200 sales professionals. GHL has a strong retail presence with 2000 distributors. Its flagship product Mahalacto reaches one million outlets across India.

Nutrine Confectionery Company Limited (NCCL): NCCL, a 100% subsidiary of GHL(Godrej Hershey Limited), is a major player in confectionery business in India. Its product portfolio includes strong brands such as MahaLacto, Koko Naka, Milk Eclairs, Honey Fab, Aam Ras, Aasay,

SuperStar and Gulkand. NCCL recorded growth in sales of 1 5%. The topline growth was led by distribution expansion, marketing focus and innovations. The brand architecture was defined for the confectionery portfolio with all rich, creamy and indulgent toffees coming under “Maha” brand & all fruity and spicy variants coming under “Nutrine”. New product “Maha Choco” was launched under the “Maha” brand & became the third largest confectionery brand in NCCL. “Santra Goli” was launched under “Nutrine” brand in addition to the revamping of Aamras & Gulkand. M.S. Dhoni, was signed up as the brand ambassador for confectionery portfolio. The gross margin was under pressure due to rising commodity cost of sugar and milk in 2 008-09. NCCL went live on all business processes in SAP in September, 2008. Nutrine Froot Shoot offers burst of different fruit flavours in a bright, colorful & attractive pack Nutrine Lollipop is a great value for money fruit candy experience on a stick Chennai, July 18th 2009: Godrej Hershey Ltd., one of India’s largest confectionery and food companies and part of the Godrej Group, announced the launch of two new confectionery products Nutrine Froot Shoot & Nutrine Lollipop at a very exciting event in the city with Nutrine brand ambassador M.S Dhoni. The evening also saw mesmerising performances by Professional Playback Singer – Suchitra, Bollywood Actress – Bhairavi Goswami & South Indian Actress – Nikisha & Robo Ganesh with over 2500+ trade partners. Nutrine Froot Shoot offers consumer variety of taste experience through exciting & different juicy fruit flavours packed in a single roll. It is priced at Rs. 2 per roll and contains different fruit

flavours

like

Mango,

Orange,

Lime/Lemon

&

Strawberry.

Nutrine Lollipop not only offers variety of taste experience through exciting & different fruit flavours but also comes at an unmatched price of Re.1. It includes fruit flavoured pops in four different

flavours

namely

Mango,

Orange,

Pineapple

&

Lime/Lemon.

Commenting on the new launches, Mr. Kinshuk Kunwar, Vice President Marketing, Godrej Hershey Ltd. said, “As market leaders, we are constantly looking for giving our consumers value added experience and great products. While most products in sugar confectionery are at 25p/50p price points, we are looking at driving Re1/Rs.2 price points

with better offerings. The twin launches of Nutrine Froot Shoot & Nutrine Lollipop is a step in that direction. Nutrine Froot Shoot addresses the variety seeking need of kids who are constantly looking for different taste experience in every moment of their candy consumption while Nutrine Lollipop is a great value for money fruit candy experience at Re 1. Today when most of the significant players in lollipop category are operating at Rs.2 it offers an excellent opportunity for Godrej Hershey to fuel the growth of this category” Nutrine Brand Ambassador M.S Dhoni at the launch said, “I am very excited be here to launch two great products - Nutrine Froot Shoot and Nutrine Lollipop. I love them both and am absolutely sure that confectionery lovers will enjoy the exciting and juicy fruit flavours of both. Nutrine has been a part of my growing up years in Ranchi and I still enjoy the variety of taste experiences that it offers every time I pop a Nutrine into my mouth.” Godrej Hershey also recently brought the classic and popular Hershey’s Chocolate Syrup to India. Hershey’s chocolate syrup is thick delicious chocolate syrup that has been loved by millions of consumers all over the world because of its rich, unforgettable and irresistible taste.

Nutrine products Nutrine Lollipops Children go ga-ga over these delightful super treat from Nutrine. Lovely lip-smacking Lolli pops in flat shapes. Also unique double flavoured juicy lollies available. Available in four different fruit flavours, attractive packaging

Nutrine Froot Shoot

Juicy, luscious, tasty disc candies in fruity flavours. Foil-packed to preserve flavour and freshness. Multiple lip smacking fruit flavours in one pack(mango, orange, lime, pineapple). Good for sharing among friends

Nutrine Aamras Exotic Indian mango pulp centre in an exquisite sugar candy. You'll unwrap a lingering true mango experience.

Nutrine Gulkand Extract of sweet, delicate Indian roses processed in pure honey and encased in sugar candy. A classic Indian delicacy. Ethnic to the core !..

Chocolate Eclairs Ripples of delicious chocolate centre encased with rich creamy caramel will make you relish every bite. Share your sweet moment with the complete chocolate eclairs. It is so tasty-tasty..!

Nutrine Eclairs An eclair with a white centre. First bite into the caramel coating and then discover the magic of tempting white Cocoa Butter. Delicious cream at the center with tasty caramel outer shell….so tasty so creamy !

Nutrine Santra Goli Delicious hard candy in tasty tangy orange flavour with soft juicy center. The outer shell gives a long lasting taste experience while inner juicy center gives a refreshing feeling of a tangy orange juice.

Nutrine Aasay A luscious vanilla-milk toffee, the heart-throb of kids and teenagers.

Lacto Bon Bon This ageless mouth watering sweet treat is a classic combination of Milk, Caramel and Ghee...

Kokanaka Cookies Coconut The crunchiest tasty treat with real coconuts, rich milk cream and glucose. A marvelous blend that sets the cookies trend. Enjoy the real taste of coconut !..

Kokanaka Cookies Milk Cream This all-rich, all-creamy Kokanaka with coconut desiccates is a hot favourite of many for its extra - rich flavour of milk-cream. Enjoy the creamy Treat !..

Honey Fab Rich honey center-filled premium candy. Only one of its kind in the country. Just bite into and feel the excitement.

Real Honey... pure Trill !..

OfficeNutrine Confectionery Company Private Limited, Chennai "Nutrine House", Old No. 232, Kilpauk Garden Road, Kilpauk, Chennai 500 08, Tamil Nadu ph: +(91)-(44)-26401498 f: +(91)-(44)-26401498