Project Report on

Market Research on Competitors Strategies to Secure the

Retailers & Corporate Customer Acquisition and
Relationship Management
Varmora Plastech Pvt. Ltd.
(Homeware Division)

By

Pallavsinh Zala
A 77
MBA I
Faculty Guide:
Dr. Ruchi Tewari

Post Graduate Institute of Management.

Amrut Mody School of Management

July 2016
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Project Report on
Market Research on Competitors Strategies to secure the
Retailers & Corporate Customer Acquisition and
Relationship Management
Varmora Plastech Pvt. Ltd.
(Homeware Division)
July 2016

Report submitted in partial fulfillment of the requirements of the

summer internship training undertaken for the MBA program

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Certificate from the Company

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Declaration
I hereby declare that my Summer Internship Report entitled Market Research on
Competitors Strategies to Secure the Retailers & Corporate Custome r Acquisition and
Relationship Manage ment (Home ware Division) submitted in partial fulfillment of the
Summer Internship Program me is original and is not substantially the same as one which has
already been submitted in part or in full for any such similar qualification to the University to the
best of my knowledge.

Date:
Place: Ahmedabad

Name of the Student

Pallavsinh Zala

The work mentioned above is carried out under my guidance.

Date:
Place: Ahmedabad

Signature of the Faculty Guide.

(Dr. Ruchi Tewari)

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ACKNOWLEDGEMENT

I take this opportunity to express my heart-felt gratitude and thanks to our honorable Director
Dr. Devanath Tirupati for providing me such a great opportunity.

I sincerely express my thanks to my project guide Dr. Ruchi Te wari for her constant support
and encouragement for the project and for widening my horizons of thinking.

However, all this was at the initial level for post and pre visit period. But the real appreciation
goes to Mr. Ravi Varmora (Director), Mr. Jekin Thakkar (HR & Sales Head), Ms. Shivangi
Trivedi (HR Executive), my mentors, M rs. Vishruta Shah (Corporate Relationship Executive)
and M r. Dharmik Ojha (Assistant Manager- Corporate Sales Department) and all other
employees in the organization who allowed and helped me to work in the esteemed Organization
and for giving me constant guidance and information regarding my concerned topic.

Pallavsinh Zala

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Table of Contents
1.

Chapter 1.................................................................................................................................. 8
1.1.

Objectives, Scope and Limitations................................................................................... 8

1.1.1.

Objectives of the Study .................................................................................................9

1.1.2.

Scope of the Study........................................................................................................9

1.1.3.

Limitations of the Study ................................................................................................9

2.

Chapter 2 ............................................................................................................................ 10

2.1 Industry and Company Orientation..................................................................................... 10

2.1.1 Industry Overview ...........................................................................................................11
2.1.2 Prominent Players in the Industry.....................................................................................11

2.3 Company Profile ............................................................................................................... 12

2.3.1 Introduction...................................................................................................................12
2.3.2 USPs of Varmora Plastech Pvt. Ltd. ....................................................................................12
2.3.3 Core Values and Work Philosophy at VPPL..........................................................................13

2.4 Organization Framework .................................................................................................... 14

2.5
3.

Porters 5 Forces Model for VPPL .................................................................................. 17

Chapter 3................................................................................................................................ 20
Training Activities at Varmora Plastech Pvt. Ltd. .................................................................... 20
3.1 Experiential Projects (Task Oriented)................................................................................. 21
3.1.1 Understanding the Marketing Mix, SWOT Analysis and Distribution Channel of VPPL ............21
Marketing Mix of VPPL ..............................................................................................................21
SWOT Analysis of VPPL ..............................................................................................................23
Distribution Channel of VPPL......................................................................................................26

3.1.2 Corporate Customer Acquisition ..................................................................................... 28

Corporate Customer Acquisition Procedure (Corporate Clients) ...................................................29
Corporate Customer Acquisition Procedure (Institutional Clients) ................................................33
Application of managerial aspects learnt during the entire exercise. ............................................36

3.2 Research Oriented Task ...................................................................................................... 37

Market Research on Competitors Strategies to Secure the Retailers. ...........................................37
3.2.1 Formulation of Objectives..................................................................................................37
3.2.2 Emphasis on Methodology.................................................................................................38
3.2.3 Primary and Secondary Data Collection. .............................................................................39

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Analysis of Data.........................................................................................................................41

4.

Chapter 4................................................................................................................................ 46
Findings, Learnings and Suggestions of the Study.................................................................. 46
4.1

5.

Findings and Suggestions ................................................................................................47

Chapter 5................................................................................................................................ 49
Conclusion ................................................................................................................................ 49

ANNEXURE 1.............................................................................................................................. 51
ANNEXURE 2.............................................................................................................................. 52
QUESTIONNAIRE .................................................................................................................. 52
ANNEXURE 3: Fortnight Reports and Feedback Form .............................................................. 53
References ..................................................................................................................................... 59

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1. Chapter 1
1.1. Objectives, Scope and
Limitations

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1.1.1. Objectives of the Study

To get an exposure of the corporate world.
To make a bridge between the theories and practical procedures in real life situation.
To have an in-depth knowledge of the Corporate Sales Department of VPPL.
To analyze the strategies used by the competitors of VPPL to secure its retailers.
To develop skills and techniques required in corporate world.
1.1.2. Scope of the Study
The scope of the study is only limited to 2 different activities i.e. Corporate Customer
Acquisition and a Market Research.
The study limits itself to only understanding two different activities rather than entire
Marketing Activities like Branding, Channel Management, Retailing, etc.
It was beyond the scope of study to understand each and every activities of the Marketing
department which is carried out at VPPL due to feasibility and time consideration.

1.1.3.

Limitations of the Study

Reaching to different retail outlets was quite difficult while conducting the research due
to the hot climate.
It was quite difficult to convince the retailers to reveal the information.
As many of the time, the employees used to be busy in their own work; it was difficult to
learn new things.
Initially, access to the data was very limited.

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2. Chapter 2
2.1 Industry and Company
Orientation

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2.1.1 Industry Overview

The Indian Plastic Industries has made a significant progress ever since it began to manufacture
polystyrene in 1957. In the last few decades, the industry has grown to the status of a leading
sector in the country with a sizeable base. The material is gaining notable importance in different
spheres of activity and the per capita consumption is increasing at a fast pace.

The growth rate of the Indian Plastic industry is one of the highest in the world, with plastic
consumption growing at 16% per annum as compared to 10% p.a. in China and 2.5% in U.K
The Indian plastics market is comprised of around 25,000 companies and employees 3 million
people. The state of Gujarat is the leading plastics processing hub with over 5000 plastic firms.

Curre nt Scenario of the Indian Plastic Industry

It is believed that the polymer consumption in India will double to 20 million metric tonnes by
2020. The current per capita consumption of polymer in India is 8 kg as compared to 109 kg in
USA and 29 kg in China. Plastic Goods from India are exported to more than 150 countries.
Plastic exports have grown at a rate of 12% in 2013-14, standing at around USD 8 million.

Raw Materials Used by the manufacturers to produce Plastic Home ware Goods
Largely following Raw Materials are used by the Plastic Product producers in the Homeware
Segment.

PolyPropylene (PP) Dry Storage Containers

PolyEthylene (PE)- Lunch Boxes

Polycarbonate(PC)- Dinner Sets, Bowls etc.

PolyEthelene Terephthalate (PET)- Water Bottles.

2.1.2 Prominent Players in the Industry

The major players in the Plastic Homeware Industry are:

Tupperware

Cello

Signoraware

Milton
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2.3 Company Profile

2.3.1 Introduction
Varmora Group of Companies is one of the biggest multi-disciplinary business establishments in
India with headquarters in Morbi, Gujarat. Since its inception in 1993, the Varmora Group has
successfully diversified into multiple divisions including Varmora Granito, Varmora Flex,
Varmora Fastner and Varmora Infotech. In 2013, Varmora Group of Companies diversified into
Varmora Plastech Pvt. Ltd., one of its largest diversification.
Varmora Plastech Pvt. Ltd. is Indias leading manufacturer and exporter of p lastic products.
Varmora Plastech has two divisions i.e. Homeware and Furniture. The manufacturing plant is
located in Changodar, Sanand and its corporate office is located in Ahmedabad. The annual
turnover of Varmora Plastech is 73.5 Cr. Out of which the contribution of Homeware Division is
23.5 Cr. and the contribution of Furniture Division is 50 Cr.

VARMORA HOMEWARE
Varmora Homeware is a leading manufacturer and exporter of branded plastic house-ware
products. The range of products from Varmora Plastech comes with its own functionality. The
wide range of Products includes bowls, jugs, lunch boxes, containers, water bottles, dinner set
and many more. All the Products have high standards of quality and durability and are designed
specifically for ease to storage and handling, along with eco friendly features. There are more
than 150 different products that are offered by Varmora Homeware.
2.3.2 USPs of Varmora Plastech Pvt. Ltd.

100% food grade products. The only Indian Company with US FDA Certification in
Plastic.

Highly durable in Design.

Life time warranty for all products.

Best after sales service.

Hi-tech plant with latest technologies.

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Unbreakable and Leak Proof products.

100% Virgin Material.

2.3.3 Core Values and Work Philosophy at VPPL

Core Values

Excellence

Happiness for all

Speed of Execution

Team Work

Mutual Respect and Dignity

Work Philosophy

Time as a Valuable asset

Commitment as an act, not a wordy assurance

Produce the best

Transparency in Communication

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2.4 Organization Framework

The McKinsey 7S framework is a management model which was developed in 1980s. This
model is also known as the Organization Framework Model. According to this model, the
elements must be aligned and mutually reinforcing. The 7S model can be used in a wide variety
of situation. It helps to:

Improve the Performance of the company.

Examine the likely effects of future changes within a company.

Align departments and processes during a merger or acquisition.

Determine how best to implement to proposed strategy.

The McKinsey 7S Model involves seven independent factors which are categorized as either
Hard or Soft elements. The Hard elements include Strategy, Structure and Systems while the
Soft elements include Shared Values, Skills, Style and Staff.

STRATEGY: The plan devised to maintain and build competitive advantage over the
competition. In any organization, strategies are formed in keeping in mind the future by the view
of present. The Strategy adopted by VPPL is to cater each segment of customers by their
innovative quality products. The VPPL identifies what are the Competitors doing in the market
and accordingly form their strategies by giving a tuff competition. The quality products,
distribution channel, customization and the price are the major strategies adopted by VPPL with
an aim to become a leader in the plastic industry globally by 2030.

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STRUCTURE: The way the organization is structured and who reports to whom. The
organization structure of VPPL is very much sophisticated. All the important decisions are taken
by the directors. The Managers and Executives perform their tasks on the basis of the orders
given by the Directors.

SYSTEMS: The daily activities and procedures that staff members engage in to the job done.
The employees of VPPL are assigned with different task according to their skill. Sales
Coordinator handles the distributors by asking constant updates, H R manager handles the
employees at the plant and office, etc. An ERP system is developed for making orders of the
products.

SHARED VALUES: The Core Values of the company that are evidenced in the corporate
culture and general work ethic. The entire organization works as per the core values of the
organization. The core values of VPPL are Excellence, Happiness for all, Speed of Execution,
Team Work, Mutual Respect and Dignity. On the basis of this core values the organization
functions.

STYLE: The Style of leadership adopted for achieving organizational goals. The leadership
style adopted by VPPL, is the way the Superiors interact with the employees under them. A
friendly environment is created in the organization where everyone treats each other equally and
hence this leads to successful accomplishment of goals.

SKILLS: The actual skills and competencies of the employees working in the organization. All
the employees of VPPL are highly skilled and experienced. It is because of their negotiation and
communication skills, the products are reachable to the customers, as they have to constantly
deal with the retailers and distributors. With the help of conceptual knowledge, skills and
experience the employees of VPPL always come up with innovative ideas to deal in the market.

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STAFF: Without humans, it is impossible for organization to work and that is why employees
are called the life line of any organization. Due to the skills and contribution by the staff of
VPPL, the company is achieving greater heights. The staff of VPPL includes the Directors,
Managers, Sales Person, Laborers, peons and all of those who contribute and work for VPPL.

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2.5 Porters 5 Forces Model for VPPL

Porter's five forces analysis is a framework that attempts to analyze the level of competition
within an industry. It looks at the five main factors that affect a particular industry.

Potential Entrants
-Huge Investment
- More Government
Interference

Threat of New
Entrants

Bargaining Power of
Suppliers
(Low)
Suppliers
-Many Suppliers
Available

Industry Competitors

Buyers
-Lot of Competitors
-High Prices
Bargaining
Power of
Buyers
(High)

Threat of
Substitues

Substitutes
- Steel Utensils

COMPETITIVE RIVALRY: For most industries the intensity of competitive rivalry is the
major determinant of the competitiveness of the industry. If entry to an industry is easy then
competitive rivalry is likely to be high. If it is easy for customers to move to substitute products
for example from coke to water then again rivalry will be high. Generally competitive rivalry
will be high if:
There is little differentiation between the products sold by competitors.
Competitors are approximately the same size of each other.
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 If competitors have similar strategies.

It is costly to leave the industry (exit barriers)
The lesser the competition, the better it is for the company. Talking about VPPL, it has a high
competitive rivalry due to more number of players. There are both local players and well
established brands since decades ruling the segment. Hence rivalry amongst the industry is very
much high
BARGAINING POWER OF SUPPLIERS: Suppliers are also essential for the success of an
organization as they provide businesses with the resources they need to produce their products
and services. Supplier power can come from:
If there is one or just a few suppliers
If it is expensive to move from one supplier to another
In order for a firm to be competitive, the bargaining power of suppliers should be low.
Bargaining Power of suppliers is low in case of VPPL. There are en numbers of suppliers
available in the market for the raw materials used by VPPL to produce the plastic product. As
said earlier, due to immense growth in the plastic industry, there are many suppliers who
supplies the raw materials at very competitive rates.
BARGAINING POWER OF BUYERS: Buyers or customers can exert influence and control
over an industry in certain circumstances. This happens when:
There is little differentiation over the product and substitutes can be found easily by
customers/buyers.
Buyers/customers are sensitive to price fluctuations.
The bargaining power of buyers should also be low. It is high in case of VPPL. This is because
there are a lot of competitors present in the plastic homeware industry. Brands like Tupperware,
Cello, Milton, Signoraware etc. have already established themselves in the homeware division
and hence the customers are loyal to those brands. Even there are thousands of local players who
produce the products with cheap quality. So the customers have lot of optio ns while purchasing
the product. Hence, the bargaining power of buyers in case of VPPL is high.
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THREAT OF SUBSTITUTES: Availability of alternative products, that offer the same benefit
that customers can purchase leads to higher threat of substitution. I n order to be competitive,
threat from substitutes should low which is high in case of plastic industry. There are various
substitutes of plastic available in the market like steel, glass, melamine etc. The products of steel
and melamine have a greater durability as compared to plastic products.
THREAT OF NEW ENTRANTS: The threat of new organizations entering the industry is high
when it is easy for an organization to enter the industry i.e. entry barriers are low and the
profitability is high. In case of plastic homeware industry, threat of new entrants is low as huge
investments are required to start up the production. Even the government interference is high due
to the nature of the product.

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3. Chapter 3
Training Activities at
Varmora Plastech Pvt. Ltd.

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3.1 Experiential Projects (Task Oriented)

3.1.1 Understanding the Marketing Mix, SWOT Analysis and Distribution

Channel of VPPL
As being an Intern in the Marketing department, it is very much essential to know the Marketing
Mix of the Company and thus the first task carried out during the internship period was to
identify and understand the Marketing Mix of VPPL, to make SWOT Analysis and understand
the distribution channel of VPPL.
Marketing Mix of VPPL

To understand the Marketing Strategy of any company, we must first know the basic Marketing
Principles and Marketing Mix is the most basic one amongst it. The Marketing Mix of any
product includes 4 Ps i.e. Product, Price, Place, and Promotion. Following are the 4 Ps of
Varmora Plastech Pvt. Ltd.

PRODUCT: Product refers to the offering made by the producer to the customer in exchange of
money. Product can be both, tangible as well as intangible in nature. The Products offered by
VPPL are tangible in nature. There are wide ranges of Products that are offered by VPPL, which
includes Water Bottles, Dry Storage Containers, Bath Set, Freezer Safe, Dinner Set and much
more. VPPL offers more than 150 different Products with different sizes and colors to its
Customers.

PRICE: Pricing is one of the most important and crucial decision that is to be taken by any
organization. The Pricing of VPPL Products ranges from Rs. 20 to Rs. 1300. The Pricing of the
Products are decided in keeping in mind the quality of the Products and the Prices of the
Competitors.

PLACE: Place in case of product is the actual physical land where the product is made and
offered. The Products of VPPL are manufactured at the VPPL plant which is located in
Changodar, Sanand. The head office of VPPL is located in Ahmedabad from where all the works
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are carried out. There are over more than 55 Distributors and more than 2000 retailers across the
country and hence those retail shops and the warehouses are also considered.

PROMOTION: Without Promotion, even the best ideas have failed miserably and hence,
promotion is one of the most important marketing mix tools. The Promotions of the VPPL
products are done through many ways. A Television Commercial is broadcasted on leading
Hindi General Entertainment Channels; Bill Boards are used at various cross roads, Flyers and
Pamphlets are distributed along with the newspapers. The new age promotion i.e. Digital
Marketing is also done on a great scale by updating the information and new offers on leading
social networking sites like Facebook, Instagram, Twitter, Pinterest, etc. In the Corporate Sales
department, the promotion is done through Telemarketing and sending Emails to the Corporate
houses. VPPL have also participated in various exhibitio ns held globally and thus promoting in
all over the globe.

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SWOT Analysis of VPPL

STRENGTHS

Quality Products with International Standards.

The Products offered by VPPL are of great quality. The Company offers life time
replacement warranty of the products in case of breakage. The products in round shaped
are leak proof. The products of VPPL are approved by US FDA, which make VPPL the
only Indian Plastic Company with US FDA Approval.

Elasticity in Pricing.
The pricing of the products are at par with the pricing of the competitors products. This is
in case of the trade department i.e. retail department. But the Pricing for the B2B
Customers is quite elastic. Huge discounts as per the orders are given to the corporate
houses and thus this is one of the Strengths of VPPL.

After Sales Services.

In case of any breakage to the product, the customer can get it replaced from any of his
convenient outlets without showing the bill. The after sales service for the corporate sales
department is different. They take constant feedback from the corporate clients.

Customization.
The VPPL offers 100% customization to the corporate clients. The Products for the
corporate clients are even made by special orders which are not in the offering of VPPL
product list. Hence, this is one of the strengths of VPPL.

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WEAKNESS

Weaker Trade Market.

As the company is just 3 years old, the trade market is in its establishment stage and
hence not every where the products are available.

High Prices.
The prices of the VPPL products are quite high as compared to its competitors. There are
many other companies which offer the same product with low price and low quality. As
the nature of the product is such, customers will not see the quality of the product if they
are getting it at a lower price. Hence, a high price is one of the weaknesses of VPPL.

Low Product Range.

As compared to the competitors, the product range of VPPL is quite narrow. Hence, the
customers get fewer options.

Less Brand Awareness.

The Company is just 3 years old and hence the customers are not much aware about the
brand. And thus they easily dont trust the brand as it has entered into totally a new
segment. Hence, Less Brand Awareness is also one of the Weakness of VPPL.

OPPORTUNITIES

Quality Products with Attractive Colors.

The products offered by VPPL are of high quality standards and its shape and colors are
very much attractive. Hence, within a short span of time, they can easily catch the eye of
the customers and the quality of the product makes the customers Brand Loyal.

Growing Market of Plastic.

The market of Plastic is growing at a greater pace and hence it is considered as one of
the opportunities for VPPL to establish them in this growing market.

Festival Gifting and Corporate Gifting.

As said earlier, VPPL provides 100% customization to its corporate clients, they have a
greater opportunity to become the value chain partners of corporate. Even the Credit
Cooperative Societies and Banks give gifts to their share holders and members during
various occasions. Hence, the products of VPPL are such that they can be given as gifts.
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THREATS

Competitors.
One of the biggest threats that any firm faces is their competitors. Tupperware, Cello,
Signoraware, Milton etc are the biggest competitors of VPPL. The competitors already
have an established brand name and hence it becomes difficult for VPPL to face to
competition as it is a new brand.

Chinese Products and Local Players.

There are many local players and Chinese Products available in the market, who offers
the same products with poor quality at a cheaper rate and hence customers opt for those
cheaper products.

Limited Stocking Capacity of Distributors.

The trade market of VPPL is in the establishment stage and hence there are less
distributors who as limited stocking capacity of products whic h may result into scarcity
of the product in that particular region.

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Distribution Channel of VPPL

Distribution activities are a vital element in creating customer value. A product will provide
customer value and satisfaction only if it is available to the customer when and where it is
needed, and in appropriate quantity. And hence, it is very much important for the company to
have an effective Distribution channel.

Distribution ranges from production and manufacturing to logistics, wareho using, and the final
delivery of goods to the customer. Very few organizations are able to deliver products to all
possible customers, and thus rely on other parties, like distributors, for assistance.

The VPPL has both direct and indirect distribution channel structure. The direct distribution
channel structure is followed by the corporate sales department while the indirect distribution
structure is followed by the Trade department.

Direct Distribution Channel Structure

This distribution structure consist only of 2 parties i.e. Producer and the Customer. This
structure is followed by the Corporate Sales department of VPPL where the Corporate of
Institutional Clients directly deals with the company. There are no intermediaries present here
and hence it becomes quite easy to deal with the orders. The products are manufactured as per
the orders given by the clients and are dispatched by the company.

Indirect Distribution Channel Structure

This distribution structure consists of many intermediaries. The following diagram shows the
indirect distribution structure of VPPL which is followed by the trade department.

Manufacturer

Distributors

Retailers

(VPPL)

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Manufacturer

Super Stockiest

Distributors

Retailers

(VPPL)

There are 55 distributors and 2000 retailers of VPPL across the country. A Super Stockiest is
created in 4 different locations i.e. Hyderabad, Bareli, Assam and Kolkata. The main purpose for
creating Super Stockiest is to make the product available when the demand of the product rises.
As said earlier the distributors have very limited storage capacity and hence transporting t he
product from the plant on frequent time makes is much costlier. Thus a super stockiest is created
to save the time and cost.

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3.1.2 Corporate Customer Acquisition

The major task carried out throughout the internship period was Corporate Customer
Acquisition. There are 3 major Marketing Departments at VPPL; Branding, Channel Sales and
Corporate Sales. The Corporate Sales department deals with the Business to Business sale and
institutional sales. With the help of Corporate Sales department, VPPL have become a value
chain partner for many big companies and institutions.

Following are the Corporate and Institutional Customers of VPPL

GSK Horlicks

Gulf Oil

Rasna

Himalaya Drug Company

Wipro Enterprises

Amara Raja Batteries

Havmor

Amul

Waghbakri Tea

Vimal Oil and Foods

The Grand Bhagwati

Nissan Petal

Intas

Royale Touch Laminates

Eureka Forbes

Kotak Bank

Rajkot Nagarik Sahakari Bank and many more..

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Corporate Customer Acquisition Procedure (Corporate Clients)

Following are the steps that are followed by the Corporate Sales department of VPPL to acquire
the corporate clients.
1. Creating a Secondary Data Base.
2. Sending Emails to the Prospect Customers.
3. Making cold calls and gathering primary information.
4. Making the Pricing Decision on the basis of primary information.
5. Sending the Master PPT after deciding the price.
6. Scheduling the meeting with the clients.
7. Finalizing the products that are to be sold with the concluded price.
8. Starting the Production of the Product and sending a sample.
9. Delivery of products and completion of payments.
10. Feedback.

1. Creating a secondary database.

The first basic task allotted during the internship period was to create a secondary data base
which contains the basic information of company like the contact details which includes the
email id and telephone number of the purchase manager or marketing manager, address of the
company, etc. The main source of gathering the information is the internet. An excel sheet is
prepared and the details are filled with the help of official websites of the companies and
institutes. If the contact number is not available, Justdial is used to get the co ntact details of that
particular company or institute.

Following are the major sources used for creating the database:

Official Websites of the Company or Institute.

Justdial

Websites like Indiamart.com

GIDC Directories

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During the internship, details of more than 4000 companies, 250 banks and 100 credit societies
were gathered. After gathering the information, the data was filtered according to the zone wise.

2. Sending Emails to Prospect Customers.

The next step after gathering the information is to send emails to the Clients. Once the data base
is ready, the email ids are screened and emails are sent to those clients. Two different types of
emails are sent. The first one contains basic information of the company, list of existing clients,
etc and the other email contains the Summer Offers and the brochure of the products. The sample
of the email is attached in Annexure 1. After sending the email various interested parties reply
back for further details.

3. Making Cold calls and gathering primary information.

Once the emails are sent, the cold calling begins. It is one of the ways to promote VPPL and this
technique is referred as telemarketing. While sending the emails, many emails turn out to be
wrong email ids and thus we cannot reach them. And also due to daily busy schedule, there are
high chances of ignoring the emails which are considered just as promotional e mails. Hence, by
calling those clients, the awareness about the products become more effective. The first priority
to talk on the phone call is either with the purchase manager or the marketing manager. Basic
information about the company, products of the company, offers are told to the managers. If they
are interested, information regarding in what product they are interested, what will be the
quantity of the order and their budget is asked. Personal contact number and email ids are shared
for further communication.

4. Making the pricing decisions on the basis of primary information.

Once the primary information of the interested party is gathered, which includes the budget and
the quantity of order, the pricing decision is taken. The pricing decision depends upon the
quantity of order and the Customization that is to be done. The Customization includes the
changes in the color, size, quality and the print that is to be done on the product. Huge discounts
on the MRP are offered to the clients. The Discount Structure is as under:

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Quantity Ordered

Discount Structure

Between 10000 to 50000

50%-55%

Between 50000 to 100000

60%-65%

Above 100000

70%

5. Sending the Master PPT afte r deciding the Price.

Once the discount that is to be offered is decided, a master PPT is created. The master PPT is
created for each client on the basis of their budget and requirements. Even various product
combinations are offered to the clients, which are not available in the market. The master PPT
includes the following things:

Product Details.

MRP and the Offering Price for each offered products.

Lead Time required.

Customized Combos of Products which fits in the budget of the client.

USPs of Varmora Plastech Pvt. Ltd.

6. Scheduling the meeting with the Clients.

Once the Master PPT is sent to the clients, they get a clear idea of the products and hence they
decide on the basis of their requirements. Once they decide the Product in which they are
interested to purchase, a meeting is scheduled to discuss the further procedure. The Corporate
Sales Manager goes to the clients place along with the products, which they have asked for.
payment procedure, pricing negotiation, customization etc. is discussed in the meeting.
Customization usually includes changes in the color of the prod uct, adding the company logo on
the product, changes in the prints of inner carton and the lunch box bags, changes in the quality
and size of the product etc. Changes in the quality and size of the product are usually done when
the order quantity is huge.

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7. Finalizing the products that are to be sold with the concluded price.
Once the products are showed and the customization is discussed, the negotiation starts. At
the end, on mutual agreement the pricing of the product is decided and the agreement papers
are signed. An email regarding the same is sent to the clients.

8. Starting the Production of the Product and sending a sample.

After deciding the product and its price, the production begins. As the order size is usually
big in the corporate orders and due to customization, the production begins only once
everything falls in place. A sample is produced first and it is sent to the client to check if any
changes are needed. Once the sample is sent and if any changes are to be done,
communication for the same is made in both written and oral form and at last the production
of the ordered product begins in full swing.

9. Delivery of the product and completion of payme nts.

After the product is manufactured, they are delivered to the destination. The pricing is
inclusive of transportation charges and hence it becomes the responsibility of VPPL to
deliver the product at given time. Once the delivery is done, the left over payment is done
and the deal gets finally over.

10. Feedback.
After a month of delivering the goods, a feedback is taken from the clients. The feedback
consists of satisfaction from the clients towards the product and services offered by VPPL
and also suggestions are asked for better service in future.

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Corporate Customer Acquisition Procedure (Institutional Clients)

The Corporate sales department not only deals with the Corporate Clients, but also deals with
Institutional Sales. In Institutional Sales, deals take place between the organization and various
institutes like Cooperative Banks, Nationalized Banks, Employees Union, Credit Societies,
Hospitals, etc. The Institutional Customers are handled in the same way the Corporate Customers
are handled.
Following are the steps followed by the team to acquire the Institutional Customers.
1. Creating a Secondary Database.
2. Making a cold call and gathering primary data.
3. Contacting the Director or the Chairman of the Institute.
4. Sending Emails and Dispatching the Courier of Product Brochure.
5. Scheduling the Meeting and Finalizing the product.
6. Delivery of Products.
7. Feedback.

1. Creating a Secondary Database.

During the internship, acquiring the Banks as the customers was at peak,
as it was the period when the cooperative banks and the credit society distributes gifts to
their members and share holders. Hence, the main task carried out during the entire
internship period was dealing with the institutional clients. The target customers were the
cooperative banks as it was the month of April and May where the audit is done and gifts are
distributed to their member. Hence, entire data of Cooperative banks in Gujarat was created.
The list of all the cooperative banks is available on the website of RBI. The list just had the
name of the banks and not the contact details. Hence, once the list was acquired, the next step
was to gather the contact details of the banks. The contact details of those banks was
gathered either with the help of their official website of Justdial. There are many banks
whose contact detail is not available on either of the sources and he nce a website was used.
https://ifsc.bankifsccode.com is the website from where the contact details of each and every
bank is available.

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2. Making a cold call and gathering primary data.

Once the contact details of the banks were gathered, the most important task was to gather
the primary data by making cold calls. The contact details gathered through the secondary
sources had mostly the contact details of the branch and not head office. So the main
objective of making the cold call was to know whether they are distribution any gifts to their
members or not. If they are interested, the contact details of the head office and the director
or the chairman of the bank was asked.

3. Contacting the Director or the Chairman of the Institute.

After getting the contact details of the head office, the directors or the concerned person was
contacted for the further details. An overview of the company, different products and other
details were shared during the telephone conversation. A Primary Data Sheet on Excel Sheet
was created which contains the details like Name of the Bank, Concerned Perso n, Budget,
Members and Remarks. After creating the data, it was screened and potential customers were
selected for the target.

4. Sending Emails and Dispatching Couriers of Product Brochure.

During the telephonic conversation, the parties who were interested in purchasing the
products were asked to share their email id or their address for the purpose of sending the
product details. The Courier is attached with the Product Catalogue and the visiting card of
the corporate sales manager for further details. During the telephone conversation, it is hard
to say about all the products that are offered by the company and hence couriers are sent to
the clients for details.

5. Scheduling the Meeting and Finalizing the Product.

Once the courier is received by the parties, a follow up call is made and meeting is finalized.
In corporate sales, there are high chances of selecting a particular product and customizing it.
But in case of institutional sales, usually customization is done only on the package of the
product. And hence various product combinations are made for those parties in keeping in
mind their budget and the products are showcased during the meeting. The selection of the
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meeting and the pricing decisions are made during the meeting itself. The discount structure
offered to institutional customers is the same that is offered to corporate customers.

6. Delivery of Products.
After finalizing the products, the products are delivered within given period of time by the
company directly or incase by the nearest distributor when the ordered quantity is less.

7. Feedback.
Same as the corporate customer acquisition, after a month of delivery of goods, a feedback
form is sent to the customers to show their satisfaction towards the service and product
offered and also suggestions are welcomed openly.

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Application of managerial aspects learnt during the entire exercise.

While performing the tasks in the Corporate Sales Department, the theories learnt in the
classrooms helped me a lot. With the implications of the theoretical knowledge, the tasks were
done more accurately. Following are some of the managerial lessons learnt while performing the
tasks during the internship.

Intense use of Digital and Telemarketing.

Precise and accurate communication.

Making the Pricing Decisions keeping in mind the Operational Costs.

Keeping in mind the Customers needs

Negotiation and Persuasion with the Customers.

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3.2 Research Oriented Task

Market Research on Competitors Strategies to Secure the Retailers.
The Market Research Society of India (MRSI) defines marketing research as:
The systematic collection and objective recording, classification, analysis and presentation of
data concerning the behavior, needs, attitudes, opinions, motivations, etc. for individuals and
organizations within the context of their economic, social, political and everyday activities.

The other major task carried out during the internship period was to conduct a market research.
The retail department of VPPL is yet in its developing stage and hence it is very much important
for the company to assure and secure their retailers and distributors regarding the sales of the
product. If the company keeps the retailers and distributors satisfied, only than the retail sector of
the company will increase with a greater speed. Hence, a task of market research was assigned to
me with a motive to find out the strategies used by the competitors to secure the retailers and
gain a real life experience of conducting a research.

3.2.1 Formulation of Objectives

Before conducting a market research, one should have a clear idea of what do they want to know
while conducting the research and hence, the first main step of conducting market research is to
find out the objectives. Once the objectives of the study are clear, the researcher gets a clear idea
of how to design the entire research the task.

Following are the main objectives of conducting the market research.

To know the pricing strategies used by the competitors.

To know the latest schemes offered by the competitors to the retailers.

To know the position of the company and their competitors in the market.

To know the new product offering of the competitors.

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3.2.2 Emphasis on Methodology.

There are three different categories of research method:

Exploratory Research is used when little is known about a particular problem.

Qualitative methods such as focus groups, in-depth interviews, projective techniques and
observational studies are included in this research design. It also makes use of secondar y
data, non-probability samples and case analysis.

Descriptive Research focuses on accurately describing the variables being considered.

Usually Quantitative methods are used in this design of research.

Casual Research is used when there is a need to determine whether one variable causes
an effect in another variable.

By looking the objectives of the study, it was clear that the research was going to be a
qualitative research as small sample size was needed in the research and little was known
about the competitors strategies. Hence, the Exploratory Research method was used to
conduct the research. The target respondents were the retaile rs.

Following are the details of the research design.

Type of Research: Exploratory Research

Sample Size: 20
Type of Questionnaire: Open ended questionnaire.
Location: Ahmedabad, Nadiad and Anand.
Respondents: Retailers of Plastic Products.

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3.2.3 Primary and Secondary Data Collection.

The most important task of the market research process is to gather the data. The two types of
data gathered during any research. The two different types of data are Primary Data and
Secondary Data.
Primary data is the data gathered for the first time, involving the collection of data for the
purpose of a particular project. The Primary Data of the market research focuses on the
interviews conducted with the retailers. With the help of an open ended questionnaire, the
interview was conducted. The main purpose for designing Open Ended Questionnaire was to get
more answers from the retailers. The Questionnaire is attached in the Annexure.
Secondary data is second- hand-data, collected for someone elses purpose.
For the research, first secondary data was collected. It was important to know some basic
information about the competitors of VPPL and hence a desk research of analyzing the
competitors was carried out.
Competitors Analysis
Following are the major Competitors of VPPL.

Tupperware

Cello

Milton

Signoraware

Glueman

Basic information with the help of internet was gathered for the above brands. The following
details show the strengths, weakness and highest selling products of the competitors.

Tuppe rware
Strength: Global Brand, Higher Brand Value, Good quality products, USA FDA.
Weakness: Less Discount Structure, No Customization, Cannot Supply huge quantities.
Highest Selling Products: Lunch Bags, Bottles.

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Signoraware
Strength: Higher Brand Awareness, Good Quality Products, Competitive Prices
Weakness: Poor Supply, No USA FDA certification
Highest Selling Products: Lunch Box, Bottles, Dry Storage Containers, Dinner Sets.

Cello
Strength: Higher Brand Awareness, Aggressive in marketing and sales, Competitive Prices
Weakness: Poor Quality, More cheap products, No USA FDA Certification
Highest Selling Products: Bottles, Thermoware range.
Milton
Strength: Higher Brand Awareness, Good Quality Products, Competitive Prices.
Weakness: Poor Supply, No USA FDA Certification
Highest Selling Products: Lunch Box, Thermoware, Melamine Products.
Glueman
Strength: Aggressive in Sales, Competitive Prices
Weakness: Very Poor Quality, No USA FDA Certification
Highest Selling Products: Glass

Comparison between the Competitors and VPPL

PRICING: 20-25% less than Tupperware

At Par to Signoraware
15-20% more than Cello and Milton
QUALITY: At Par or Beyond to Tupperware and Signoraware
Higher than Cello and Milton

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Analysis of Data
1. What different brands of Plastic ite ms do you sell at your s hop?
A list of competitors was already made while preparing the questionnaire. During the interview
the retailer was asked about the brands they sell. The main purpose o f listing down the brands
prior to the interview was to gather the information only of those brands that are near
competitors of VPPL. Following are the brands listed down while preparing the questionnaire:

Cello

Milton

Signoraware

Nayasa

Varmora

Glueman

Polyset

Ski

Princeware

Ratan

Following graphical representation shows the responses.

25

20
15
Number of
Retailers 10
5
0

Brand

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2. What is the Discount Structure offered to you by those brands?

The below graphical representation shows the discount structure offered by various brands to its
retailers.

40
35

30
25
Discount in %age 20
15

10
5
0

Brands

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3. Do they give any Annual Schemes? If yes, please elaborate.

4. Do they give any Te mporary Schemes? If yes, please elaborate.
The main objective of the research was to identify the strategies used by the competitors to
secure the retailers by providing various schemes. Every organization needs to keep their
retailers satisfied and for the same, they often come up with various schemes. During the
interview, out of 20 retailers 11 retailers were not availing the schemes while the rest of them
provided the below information.
Cello

Credit note of 3 to 5 % on next order.

7% extra discount if they achieve the given target.

If the retailers reach 450 points, which are to be made by selling the products, a trip
to Goa is offered.

Ratan

Silver Coin when the billing amount reaches above 50,000 Rs.

Extra 4 % discount, if they achieve the given target.

Milton

Extra 6 % discount, if they achieve the given target.

Varmora

Trip to Dubai if the annual sales reaches to 3,11,000 Rs.

Trip of Europe if the annual sales reaches to 7,11,000 Rs.

If the order is more than 30,000, gold coin is offered.

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5. What is the seasonal de mand of various products?

Summer Refrigerator Bottles, Jugs, lunch box
Monsoon Tiffin, Casserole, Buckets
Diwali- All the products are in great demand
Winter Bowl, Dinner Set
6. How early do you order the products after identifying the demand?
Almost all the retailers order the products a month prior the season starts. They do not
face any shortage of products as they have good relations with the distributors and they
get the product whenever they need it.
7. What are the Upcoming Products?
The main motive of this question was to identify the new products that are to be launched
by the competitors. But not even a single retailer knew about any new upcoming
products.

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8. Which is the fastest selling brand in each range?

Usually the plastic products are commonly used for 4 major ranges which include Aqua
Series, Bath Set, Lunch Box and Dry Storage Containers. The main motive of this
question was to identify the position of the competitors and VPPL. Following graphical
representation shows the responses of the same.

9
8
7
6
Number of 5
Retailers 4

Aqua Series

Lunch Box

Bathset

Dry Stroage

Brands

9. Please provide the product catalogue of any brands if available.

The main purpose of collecting the product catalogue was to find out the entire range of product
offered by various competitors along with its MRP. Product catalogue of Cello, Signoraware,
Nayasa, and Ratan was collected after a lot of request to the retailers.

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4. Chapter 4
Findings, Learnings and
Suggestions of the Study.

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4.1 Findings and Suggestions

Findings
I observed the following things during the internship period at VPPL

A great Corporate Sales Strategy adopted by the VPPL to boost up the sales by providing
customization and huge discounts.

While conducting the research, I found out that the schemes offered by the VPPL to the
retailers were quite attractive than its Competitors.

The major reason of while people choose other brand over Varmora is due to its high
pricing. While conducting the research in towns like Nadiad and Anand, very few
retailers were selling the products of VPPL and when asked why they do no sell the
VPPL products, the major reason found was its high pricing.

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Suggestions

Aggressive Marketing
The brand is just 3 years old in the Homeware Segment and hence it is very much
important for VPPL to create the awareness among the customers. There are already
established players in the market and to differentiate Varmora from other competitors, the
company should do the best possible promotions. The marketing strategies are much low
as compared to the strategies adopted by the competitors and thus VPPL should be
Aggressive in conducting Marketing Campaigns.

Widening the Product Range

While conducting the research, I found out from the retailers that apart from the
Refrigerator Bottles, the demand of other products from Varmora like Dry Storage
Containers, etc. has a limited storage size and hence the customers prefer other brands
over Varmora. Hence, new product range of different Size and Shape must be introduced.
Even the prices of products are quite high than the competitors and hence the other major
factor which leads to less sale is high pricing. The company should either lower down the
prices or introduce and entire economy range products which can be afforded by all the
segment of customers.

Entering the modern trade.

Today, the modern trade is at its peak level. People prefer to go to mall for shopping
because they get everything under one roof only. The products of Varmora are yet not
available in the malls apart from 2-3 malls in Bangalore. If the products are available in
the malls, the sales will increase and also the brand awareness amongst the customers
will increase.

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5. Chapter 5
Conclusion

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CONCLUSION
The two months Summer Internship at Varmora Plastech Pvt. Ltd. was a great learning
experience. My understanding of the functioning of the Marketing Department have come a level
ahead compared to what it was before. The internship helped me a lot in building up my
communication skills. The internship helped me to understand how the B2B sales are made by
providing a unique product portfolio and huge discounts.

The theoretical world and the practical world are way apart, still having a line of connection.

The employees of the organization were cooperative and always helping.

The internship helped me to experience the corporate world.

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ANNEXURE 1
Specimen of Email
Subject: Innovative Gifting Solutions
Dear Sir
Warm Greetings from us.

Varmora Homeware is a leading manufacturer and exporter of branded plastic house-ware

products. We are a successful brand in the plastic industry with our range of innovative and
attractive products including plastic house-ware.

The range of products from Varmora Plastech comes with its own functionality and design. The
products include "bowls, jugs, lunch boxes, dinner sets and more. All of our products are
manufactured specifically to ensure the users' comfort, and come with detailed information about
its characteristics and functionality regarding use and care.

All products are available in different shapes and sizes and colors, and have high standards of
quality and durability, and designed specifically for ease of storage and handling, along
with Eco- friendly features.

Please find attached our product catalogues.

Thanks & Regards,
DHARMIK OJHA | ASSISTANT MANAGER (CORPORATE SALES)
Corporate Office : Varmora Plastech Pvt. Ltd., C/1009, Ganesh Meridian, Nr. Sola Over
Bridge, S. G. Highway, Ahmedabad, Gujarat-380060. India.
Mobile : +91 8980811726 I www.varmoraplastech.com

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ANNEXURE 2
QUESTIONNAIRE
Name of the Outlet___________________________
Name of the Retailer_______________________
1. What different brands of Plastic Items do you sell at your shop?
Cello, Milton, Signoraware, Nayasa, Varmora, Gluman, Polyset, Ski, Princeware, Ratan
2. What is the Discount Structure offered to you by those brands?
3. Do they give Annual Schemes? If yes, Please elaborate.
4. Do they give any temporary Schemes? If yes, Please elaborate.
5. What are the seasonal demands of the Products?
6. How early do you order the Products after identifying the demand?
7. What are the Upcoming Products?
8. Which is the fastest selling brand in each range?
9. Please provide the product catalogue of any brands if available.

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ANNEXURE 3: Fortnight Reports and Feedback Form

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References
Links

http://www.bpf.co.uk/article/the-plastics- industry- in- india-an-overview-446.aspx

http://www.ibef.org/exports/plastic- industry- india.aspx

http://www.moneycontrol.com/smestepup/news/make_in_india_strengthening_nations_plastics_industry-2501301.html

http://www.varmorahomeware.com/
Books

Marketing, Asian Edition by Paul Baines, Chris Fill, Kelly Page. Adopted by P.K.Sinha.

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