Modern Trade Essays

Modern Trade Essays Modern Trade Essay Modern Trade Essay Analysis optimization of sales and distribution network, Brand promotion and Merchandising By Sai Krishna M PGDM-IB Roll No. 23 Under the guidance of Mr. Y V Vijay Kumar Area Sales Manager FieldFresh Foods Pvt. Ltd. Bengaluru Prof. Ramki Faculty KJ Somaiya Institute of Management Studies and Research, Mumbai 1 K J Somaiya Institute of Management Studies Research Certificate from Summer Project GuidesWe approve this Summer Project Report titled Analysis optimization of sales and distribution network, Brand promotion and Merchandising as a certified study in management carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for the award of Post Graduate Program in International Business for which it has been submitted. It is understood that by this approval we do not necessarily endorse or approve any statement made, opinion expressed or conclusion drawn therein but approve the Summer Project Report only for the purpose it is submitted.Summer Project Report Examination Committee for evaluation of Summer Project Report Name Signature 1. Faculty Examiner 2. PG Summer Project Co-coordinator 2 Acknowledgement On this opportunity I would like to extend my sincere thanks to my college, K. J Somaiya Institute of Management Studies and Research, Mumbai and to Field Fresh Foods Pvt. Ltd. , for offering me a unique platform to earn exposure and garner knowledge in the field of sales and distribution of premium FMCG products.This project was a great learning experience and provided me an up close insight of how the sales distribution, merchandizing and promotional activities are carried out. I am especially thankful to my guide Mr. Vijay Kumar for the kind support and guidance that he extended to me throughout the project. I also want to convey my sincere thanks to my college faculty Prof Ramki, SIMSR who has been guiding me throughout the project. He was there to help me out at all possible situations. Last but not the least I would like to express my profound gratitude and thanks to each and every employee of Field Fresh Foods Pvt.Ltd. who knowingly or unknowingly have contributed in their own ways to the successful completion of this project. Sai Krishna M PGDM(IB)-023 SIMSR, Mumbai 3 ABSTRACT The project was aimed at understanding and then analyzing the sales and distribution channel of Field Fresh Foods and the methods in which the company is currently carrying out promotional activities for their Del Monte range of products. Del Monte, an international conglomerate in food industry has recently entered the Indian market. While the market potential is huge, the competition is also fierce.Typical of the FMCG market almost all the major FMCG players wage a price war. Del Monte products are positioned as premium products. To reach the target segment and convince them of assured high quality which is the Del Monte promise is a challenging job. The sales and distribution network is the backbone of any FMCG company. In my project, I started off with the feasibility study of usage of perforated sheets as a promotional material in private vehicles. Following which I studied the sales and distribution model of Del Monte products in Bangalore city focusing on Modern Trade outlets which included stand alone super market utlets. I gave the feedback about how the present Distribution model is working and also gave suggestions for optimization of sales and distribution network. The issues with retailers and distributors regarding the products were reported to company. I was also looking after point-of-sale promotions of Del Monte products at the supermarkets that I was allotted. 4 Contents Acknowledgement Abstract Chapter 1 Introduction Topic Objectives of Study Research Methodology . 6 6 .. 7 . 3 . 4 Conclusion Chapter 2 About the Company and Industry . 7 About the FMCG Market in India 8 About the Company . About the products . . . 14 19 Chapter 3 -Theoretical Framework Milk Run Model Methods of Distribution . .. 22 . 23 Chapter 4- The Project Feasibility Study Sales and distribution Modern Trade General Trade General Issues with Product/Packaging and Other Issues Recommendations Visibility contract Brand promotion . . . 25 . 26 27 .. 30 . 32 . 33 35 35 36 Chapter 5 Summary 5 TopicThe objective of my project was aimed at understanding the sales and distribution channel of Field Fresh Foods and how the company is carrying out promotional activities for Del Monte range of products the city of Bangalore. Del Monte is a recent player in the processed foods industry in India. While the market potential is huge, the competition is also fierce. Thje competition stems from the fierce price war amongst the players. Del Monte products are of premium category with emphasis on quality. To reach the target segment and convince them of assured high quality is a challenge the company has embarked upon.The sales and distribution network is the backbone of any FMCG company. In this project, I have studied the sales and distribution model of Del Monte products in Bangalore city. After the analysis of the distribution channel, I was asked to give feedback on how the present Distribution model is working and also provide suggestions for optimization of sales and distribution network. The issues with retailers and distributors regarding the products were reported to company. We also did market research for one of the promotional material, perforated sheet. We found out the reasons why it was not successful in Bangalore.While we promoted Del Monte products at all possible outlets, from small bakeries to big hypermarkets, my area of focus was on standalone Family malls which come under the purview of Modern Trade. Objectives of Study y y y y Understanding the sales and distribution network of Del Monte Give suggestions for optimization of sales and distribution network Carrying out promotional activities Merchandizing 6 Research Methodology: Primary research: All the data pertaining to the sales and distribution channels were collected as a part of daily field vi sits which were extensive and laborious.My daily field visits included visiting the distributor s office and accompany the distributor s salesman in studying the market. Secondary research: Other data about the company like Sales figures, Advertisements and such have been collected through internet. Also the facts and figures about the FMCG Company have been collected through secondary research. Conclusion In my project, I was entrusted to study the sales and distribution channels of Del Monte products in Bangalore city especially focusing on the Modern Trade channel.I gave the company feedback on how the present Distribution model is working and also gave suggestions for optimization of sales and distribution network. The issues with retailers and distributors regarding the products were reported to company. We also did market research for one of the promotional material, perforated sheet. We found out the reasons why it was not successful in Bangalore. Having learnt of the good re sponse from the retailers whose customers praised the high quality of the products and it s good taste, company is expecting to capture a huge market share.Presently the chunk of company s profit is coming from Modern trade divisions which include big departmental stores and stand alone supermarkets. However the company is also banking upon the general trade channels to provide for a substantial share in the overall sales pie. 7 About the FMCG Market in India The Indian FMCG sector is the fourth largest sector in the economy and creates employment for three million people in downstream activities. Within the FMCG sector, the Indian food processing industry represented 6. 3per cent of GDP and accounted for 13 percent of the countrys exports in 2003-04.A distinct feature of the FMCG industry is the presence of most global players through their subsidiaries (HUL, PG, Nestle), which ensures new product launches in the Indian market from the parents portfolio. Demand for FMCG products is set to boom by almost 60 percent by 2007 and more than 100 per cent by 2015. This will be driven by the rise in share of middle class from 67 per cent in2003 to 88 per cent in 2015. The key characteristics features are a strong MNC presence, a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost.Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from $11. 6billion in 2003 to $33. 4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash, etc. in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products.Growth is also likely to come fro m consumer upgrading in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around $28 billion of investment in the food-processing industry. 8 Government Policy The Government has enacted policies aimed at attaining international competitiveness through lifting of the quantitative restrictions, reduced excise duties, automatic foreign investment and food laws resulting in an environment that fosters growth.Completely export oriented units can be set up by government approval and use of foreign brand names is now freely permitted. Automatic investment approval (including foreign technology agreements within specified norms), up to100 per cent foreign equity or 100 per cent for NRI and Overseas Corporate Bodies(OCBs) investment, is allowed for most of the food processing sector except malted food, alcoholic beverages and those reserved for small scale industries (SSI). 24per cent foreign equity is permitted in the small-scale sector.Temporary approvals for imports for test marketing can also be obtained from the Director General of Foreign Trade. The evolution of a more liberal FDI policy environment in India is clearly supported by the successful operation of some of the global majors like PepsiCo in India. The Indian government has abolished licensing for almost all food and agro-processing industries except for some items like alcohol, cane sugar, hydrogenated animal fats and oils etc. , and items reserved for the exclusive manufacture in the SSI sector.Quantitative restrictions were removed in2001 and Union Budget 2004-05 further identified 85 items that would be taken out of the reserved list. This has resulted in a boom in the FMCG market through market expansion and greater product opportunities. 9 Central and State Initiatives Various states governments like Himachal Pradesh, Uttaranchal and Jammu Kashmir have encouraged companies to set up manufacturing facilities in their regio ns through a package of fiscal incentives.Jammu and Kashmir offers incentives such as allotment of land at concessional rates, 100 per cent subsidy on project reports and 30 per cent capital investment subsidy on fixed capital investment upto $63,000. The Himachal Pradesh government offers sales tax and power concessions, capital subsidies and other incentives for setting up a plant in its tax free zones. Trends The boom in various consumer categories, further, indicates a latent demand for various product segments. For example, the upper end of very rich and a part of the consuming class indicate small but rapidly growing segment for branded products.The middle segment, on the other hand, indicates a large market for the mass end products. The BRICs report indicates that India s per capita disposable income, currently at $556 per annum, will rise to $1150 by 2015 another FMCG demand driver. The spurting the industrial and services sector growth is also likely to boost the urban con sumption demand. An estimated double-digit growth over the next few years shows that the good times are likely to continue. 10 Growth Prospects With the presence of 12. 2% of the world population in the illages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. If the companies are able to change the mindset of the consumers, i. . if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. The increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption.At present, urban India accounts for 66% of total FMCG consumption. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas. 11 Industry Analysis A.Key Success Factors: a) Distribution-related KSFs: y y y y A strong network of distributors Efficient and responsive supply chain Ability to secure favourable display spa ce on retailer shelves Robust relationship with retailers b) Marketing-related KSFs: y y y y y Strong brand recall Motivated Sales team well equipped with the product knowledge Point of Sale advertising Special offers and bulk buy deals for retailers Attractive product packaging c) Other types of KSFs: y y High product quality standards Product innovation capabilities with respect to new product launch and time to market 2 d) Industry s Dominant Features: y y Industry growth rate: The industry is growing at the CAGR of 9%. Number of rivals: In certain product categories, such as, ketchup and sauces, the industry is dominated by a few large companies but overall it is fragmented into many small and regional companies. y Number of buyers: Market demand is fragmented among several buyers across the country and hence buyers do not enjoy much of bargaining power y Degree of product differentiation: Product of other companies is less differentiated leading to heightened price competition. Product Innovation: Development of new and differentiated products is important B. Industry Driving Forces: y y Booming modern retail Increasing globalisation of industry leading to several foreign companies foraying into India y Changes in consumer behaviour marked by increased health consciousness and adoption of urban and outgoing lifestyle y Burgeoning middle class with increased purchasing power 13 About the Company FieldFresh Foods Pvt Ltd. : An Indian business giant and a Philippine conglomerate have come together to create FieldFresh Foods Pvt.Ltd. FieldFresh Foods Pvt. Ltd. , is a venture between Bharti Enterprises and Del Monte Pacific Limited, to offer fresh and processed fruits and vegetables in the domestic as well as international markets, including Europe and the Middle East. Brand Del Monte has 118 years of rich international heritage during which it has been synonymous with quality and taste. The brand originated in the US and is now available all across the globe. The Del Monte range of branded processed food products ncludes Fruit drinks, Ketchup Sauces, Packaged Fruits and the Italian Range consisting of Pasta, Olive Oil and Olives/Jalapenos and a Culinary range which is aimed at HORECA, Foodservices and QSR industries. Del Monte was brought to India in 2007 by a joint venture between Bharti Enterprises and Del Monte Pacific Ltd. The JV is called FieldFresh Foods Pvt Ltd. Bharti Enterprises is one of Indias leading business groups with interests in telecom, agri business, financial services, retail and manufacturing.Del Monte Pacific Ltd, headquartered in Manila, Philippines, is engaged in the production, marketing, and distribution of Del Monte products in the select Asian markets. Del Monte Pacific also holds exclusive rights to produce and distribute food and beverage products in the Indian subcontinent. 14 The company will produce, market and distribute farm fresh products that address the needs of today s consumer. With a range of de licious and superior tasting products, FieldFresh Foods Pvt. Ltd. , looks forward to becoming one of the most trusted providers of premium quality fresh farm products, processed foods and beverages.With the synergy between Bharti s dynamism and Del Monte s heritage of over 100 years, the company aims at becoming a leading player in the foods beverages segment in India. FieldFresh Foods Pvt Ltd besides offering Del Monte range of Food Beverage products, also sources and markets fresh produce for domestic as well as export markets. The companys vision is to be the most trusted and innovative provider of branded fresh fruits, vegetables and processed food products in India. Bharti Enterprises:India s leading business group, Bharti Enterprises has interests in telecom, agri-business, insurance retail. With over 100 million customers, Bharti s flagship unit, Airtel Ltd. , is the country s leading private sector provider of telecommunication services. 15 Del Monte Pacific Limited: Base d in Philippines, the company is engaged in the production, marketing, and distribution of premium branded processed foods and beverages. Del Monte Pacific also holds exclusive rights to produce and distribute food and beverage products in the Indian subcontinent. Quality Excellence at FieldFreshFieldFresh ensures best-in-class facilities, business practices and quality standards through technological innovations, international quality management systems and food safety initiatives. Our Quality Management System (QMS) operates on: Right First Time Zero Tolerance These are achieved through critical interventions in processes wherever applicable, so that only top-class quality products reach the end consumers. To pave the way in farming practices, the company has complied with Global GAP guidelines not only in company managed farms but across all partner farms.The growing partners are spread across the following states: Punjab Baby Corn, French Peas Maharashtra Sweet Corn Baby Corn Gujarat and Andhra Pradesh Mangoes 16 The state-of-the-art laboratory facilitates physical, chemical and microbiological analysis of the raw materials and packaging materials through the entire manufacturing cycle. Continuous focus on packaging development and innovative solutions has enabled FieldFresh to meet the superior packaging requirement of customers. At FieldFresh, food safety and consumer health is the top most priority.This is clearly reflected in the manufacturing facility and packhouse being certified under: Food Safety Management Systems (FSMS) (ISO:22000:2005) BRC British Retail Consortium Environment Health Safety (EHS) is an integral part of FieldFresh business practices. Focus on EHS is driven through: Process Mapping Regulatory and Food Safety Audits Reviews of Certifications The Technical team is also focused on critical processes and development for new initiatives on new products. Certifications The Good Agricultural Practices and QMS have enabled us to achie ve highest levels of standards and certifications.Exports FieldFresh Foods has focused on building a robust Fresh Exports business model in vegetablesprimarily Baby Corn and Sweet Corn. Some of the other greens exported are French Beans and Green Chillies. All farms, where both Baby Corn Sweet Corn is grown are Global GAP certified farms. 17 Agri Centre Of Excellence (ACE) FieldFreshAgri Centre OF Excellence (ACE) at Ladhowal, Ludhiana, Punjab was inaugurated by Dr. Manmohan Singh, Honourable Prime Minister of India on 27th September, 2006. ACE comprises of 300 acres of farming, developed for open and protected cultivation.The activities that have gone into making ACE a centre of excellence are: Partner Farming Farmer Training Open Cultivation Crop Development 132 acres of Micro Irrigation 42 acres of Spanish designed protected cultivation Bell Peppers and Cherry Tomatoes grown in Glass Houses Chilly Nursery in Green Houses Cauliflowers in Net Houses 24 x 7 technical support to the partner farmers A state-of-the-art processing facility and pack-house has been set up with vegetable processing capacity of over 250 tons and a cold-storage capacity of 500 metric tons built over 7500 sq. metres.The facility takes pride in the following certifications: GLOBALGAP Certified Operations ISO 22000 Certified Packhouse BRC (British Retail Consortium) Certification for the Packhouse 18 About the Products The Del Monte product range includes: y Fruit drinks: Pineapple fruit drink with pulp, Pineapple Orange fruit drink, and Four seasons fruit drink (Pineapple, Mango, Orange and Guava), Green Apple and Orange y Packaged fruits: Pineapple Slices, Pineapple Tidbits, Prunes, Mango Pulp(Sweetened), Fiesta Fruit Cocktail and Peach Halves 19 y Corn: Regular and Sweet Corn yKetchup Sauces: Tomato Ketchup, Zingo Twango Sauces 20 y Italian Range: Range of dry Pasta, table Olives and Olive Oil 21 Theoretical Framework Milk Run Model Del Monte Distributors use Milk Run model for the distribution of their products. A milk run is typically a route in which a delivery van either delivers product from a single to multiple retailers or goes from multiple suppliers to a single retailer. In other words, a supplier delivers directly to multiple retail stores on a truck or a truck picks up deliveries for many suppliers of the same retail store.The diagram below shows how a milk runs model of single supplier and many retailers work. The company has divided their distribution channel into two parts General trade and modern trade. General trade consist of bakeries, small kirana stores, retail stores and medium size deartmental stores. It is a huge business and the fact that the mass of India still purchases their grocery items from local kirana stores. It becomes very important for the company to have a robust sales and distribution network in genearl trade. Whole of the city is divided into areas depending on the geographical location of dealers.The dealer has the respons ibility of catering to demand whole area surrounding it. Their were 7 dealers and each dealer had 700 outlets in his area. Modern trade constitutes stand alone supermarkets, Hypermarkets and supermarkets which are a part of retail chain spread across the country. There are three distributors for modern trade. Milk run is helpful since in our case very frequent and small deliveries are 22 needed on a regular basis and either a set of suppliers or a set of retailers is in geographic proximity. The dealer has around 700 outlets in his area and the delivery is divided on the basis of routes.Since all the stores are in geographical proximity and the deliveries are small this model is very successful. Some of the salient features of Milk runs model are ? Milk runs help to reduce the transportation costs by consolidating shipments to multiple stores on a single truck. ? Milk runs allow deliveries to multiple stores to be consolidated on a single truck, resulting in a better utilization of the truck and somewhat lower costs. ? The use of milk run is helpful if very frequent, small deliveries are needed on a regular basis and either a set of suppliers or a set of retailers is in geographic proximity. Helps to reduce the amount of inventory to be kept as a safety stock in the warehouses. High degree of coordination and synchronization required among the members of supply chain Methods of Distribution Method 1 Ready stock unit: In ready stock unit, the company appointed salesman, 1 driver and a helper from dealer go in a delivery van. They go to each store and according to the order that retailer places, it is immediately delivered. Delivery vans usually contain all the products in substantial quantity but if it is not avalaible at that moment the order is noted and delivered later.A receipt is made for the same and whole of the order is given on credit. Sometimes only driver and sales guy are there depending upon the distributor. Method 2 In the second method the salesm an appointed from Del Monte takes order from stores which he visits on his motorcyle. He covers all the stores on a prticular route in a day. He gives the order list to dealer at the end of the day. The order list consists of products to be delivered, quantity and address of retailer. The next day the delivery van goes on the same the route and delivers the at the given address.The sales man on the other hand is on another route for the next day and this cycle continues. 23 The Project Feasibility of perforated sheet promotional material in Bangalore Background:The Company Del Monte had launched perforated sheet with Del Monte brand printed on it as a promotional material which was a great success in Delhi. These perforated sheets basically acts like sun shield and to be put in the car rear windshield. The design of these sheets is such that while it blocks the incoming sun light, the visibility is not hampered.Such perforated sheets are already in use in buses where the large glass area provides for ample space to put these materials. The Company wanted to replicate the success of this promotional material in Bangalore too but it proved to be a failure, reasons for which we shall discuss below. Task:The Company had asked us to analyse the reasons of failure and at the same time try to diffuse the promotional material in the market. Action Outcome:In this regard I interacted with car owners or drivers on whether they would be willing to use that sheet for their cars.The locations selected for such interaction were Parking lots in malls, and other commercial areas where there were plenty of cars. Invariably, all the people I spoke to, refused to this idea citing one of the following reasons:y y y y y y They already have a sun film on their car s windows and windshield They are not comfortable in carrying a Company s advertisement. They were asking for some incentive for sporting the promotional material. Car drivers refused to this saying they need to take pri or permission from car owners.It doesn t get as hot and sunny in Bangalore as it is in Delhi, which made the sun screen seem less attractive even in summer. They were sceptical that visibility would be hampered. It was also observed during the above interaction that most of the people I interacted with were not aware of the Del Monte brand but I made use of the opportunity to make them aware of the brand and its product offerings even if they were averse to idea of using perforated promotional material. This exercise instead turned out to be a face-to-face promotion and perforated sheets were just a platform to start-off the interaction.I also observed that such face-to-face promotion was very effective as people were not only made aware of the Brand but could also be educated on the Brand, its history and of course its product offerings but the downside was the very limited reach we had. 24 Sales and distribution: Indias economy is projected to grow at a fast rate over the next few years. With increasing purchasing power and a rising middle class, the fast moving consumer goods (FMCG) industry is posed to grow dramatically. To leverage opportunities, FMCG manufacturers and retailers are developing and implementing deliberate strategies for gaining market access.FMCG giants like Unilever, Marico, PG, Nestle etc are constantly improving and modernizing their sales and distribution network removing their bottle necks. Del Monte has developed a strong distribution channel in a short span of time. I would like to throw some light on sales and distribution network of Del Monte. Bangalore is the head office of South India Del Monte operations. The company has divided the distribution channel into two parts 1. General Trade 2. Modern trade Modern trade constitutes stand alone supermarkets and supermarkets which are a part of retail chain spread across the country.General trade deals with bakery, retail stores and small kirana stores. Sales 100 80 60 40 20 0 General T rade Modern Trade Sales 25 MODERN TRADE (STAND-ALONE) OVERVIEW The Co. has three distributors that serve the standalone departments stores across Bangalore. Most of these outlets are individually owned operate like mom-pop stores but in an organized fashion. Each distributor covers 6 different routes each day from Monday through Saturday. I was working under Ghouri and Co, a distributor who handled around 65 stores in Bangalore South and Central.Unlike General Trade where the outlets are located in a cluster, the outlets are sparsely located. A Sales Man typically serves 7-10 stores in a day, whereby the orders are taken and the delivery is made the following day. Normally, the activities performed are as follows:y y y Take a count of the existing stock and note down in the order book Estimate the potential order. Consult the purchase officer/ store manager/ category manager for final order placement. y y y y Delivery made by the distributor the following day. Payment collected eith er by the distributor themselves or by the Co. Salesman. Credit period usually ranges from 15-30 days. Put up point of sale promotional material. Most of the stores that fall under the Modern Trade- Stand Alone category have decentralized purchasing system even if the no. of outlets of that particular Co. is in several. Since the stores are serviced weekly, the quantity ordered aren t huge and typically the stores doesn t keep off the shelve stock, what all they have is there on the shelves. 26 At present modern Trade (including Retail chains) account for 85% of the sales.This is mainly because the products that Del Monte has under its portfolio in India are premium and suit the lifestyle of modern audiences who buy their groceries from modern retail outlets. The higher purchasing power and brand awareness also helps in the sale of almost all the products. The following products sell well at modern retail outlets:y y y y California prunes Canned fruits Italian range including olive, pastas etc. Juices Again this is an overall movement of goods because movement each product depends primarily on the location of the store and its customer base.DAY Monday Tuesday Wednesday ROUTE Indira Nagar, Domlur Marathahalli, Whitefield OUTLETS COVERED 15 11 Wilson Town, Frazer Town, 14 Hennur Main Road Thursday Friday Saturday Kamanahalli, Banasawadi Ulsoor, Indira Nagar Kasthuri Nagar, K R Puram 14 12 04 27 Issues in Modern Trade Stand Alone Super Markets 1. The single most important issue was the start time of the daily route. Ideally the distributor should open office by 9 AM which enables the sales representative to start his route by 9:30 but mostly there are delays either on distributor s side or the salesman s side.This results in a late start by the sales man. Most stores do not give orders beyond lunch hour, due to which there is an unnecessary rush on the salesman s part to get to the stores and get their orders before lunch. 2. The products in demand in modern trad e are different from that in general trade. In G. T (general trade) mostly ketchup and juices are sold while in Modern trade (M. T) Pastas, Prunes, Fruit cocktail and Sweet corn are also sold in good numbers. Salesmen in modern trade are not able to explain the ingredients or the taste of the products.This lack of precise knowledge creates confusion in minds of retailers and brings about a certain degree of hesitation while giving orders. 3. Salesman does not emphasize the placement of products in the store shelf. Even if they do it is impossible to keep a check on the activitie