EXECUTIVE SUMMARY

I did my summer project in Montex Food Products, Mumbai. an attempt was made to study on competitive analysis of confectionary industry. In my two months summer training I got field experience like interacting with different trade person in the cites and to know about the market share of the company in the confectionary market, how our company tackles with its competitor. After the summer project I feel very energetic and enthusiastic as every part of it is filled with experience and learning. My summer internship project has increased my confidence levels and understands how professional life is to be maintained. An important lesson learnt is how to deal with the customer and convince them. My visit to different areas made me to develop my contacts and know about different types of customer, understand the market conditions & other skills developed by me are convincing customers through different modes. My summer project in Montex high lighted that if a person in order to be successful should carry the ability to learn new things with the changing environment and this was inspired by the company in which I completed my summer project. Objectives:The objective of the study was to understand different market share and different market strategy taken by the different confectionary company in the competitive market. METHODOLOGY:To accomplish this project successfully, data is collected from different sources, like market survey and from different confectionary distributers,and also from different confectionary companys sales officer.

CHANNEL:Manufactures normally use intermediaries for talking their products to the users. The intermediaries bear a variety of names. All such intermediaries constitute the marketing channel. the manufacturers branch offices,depots,warehouses and showrooms too form a part of the marketing channel. Where institutional channels like chain stores, super markets,etc.are used by the firm ,they too form part of the marketing channel .where institutional channels like chain stores ,super markets,etc. are used by the firm, they too form part of the marketing channel of the firm.

Channels play a pivotal role in marketing; they perform a number of vital distribution functions. their importance emirates form the functions performed by them. Firms rely on the marketing channels for generating customers satisfaction and for achieving differentiation over competitors. Channels are thus a vital source of competitive advantages for the firm. Type of marketing intermediaries:19

Sole-selling agent Marketer C&F agents (CFAs) Redistribution stockiest Stockiest/distributor/whole seller Semi-whole seller Retailer/dealer Franchisees Authorized representatives Commission agents Jobbers

We will discuss about the channel taken by these companies, how they distributes their products in the market, mainly these channels are taken by every companies, they are given below; CFA, SUPERSTOCKISTS, STOCKISTS And theirs def.

CFA:Manufacturers employ carrying and forwarding agents ,often referred to as C&F agents, or CFAs.the CFA can be described as special category wholesalers. They supply stocks on behalf of the manufacturer to the whole sale sector. their function of distribution. Their distinguishing characteristic is that they do not resell products but act as the agent /representative of the manufacturer. They act on behalf of the manufacturer and his extended arm .so they are manufacturers branch.

STOCKISTS:A whole seller or stockiest or distributer is also a large operator but not on a level comparable with a marketer or sole selling agent, in size resources and territory of operation ,the wholesaler /stockiest/distributers operates under the market sole sailing agent ,where such an arrangement is used by the manufacturer.

PRICE:Price is the one element of the marketing mix that produces revenue; the other elements produce costs. Price are perhaps the easiest elements of the marketing program to adjust; product features ,channels and even promotion take more time. Price also communicates to the market the companys intended value positioning of its product or brand. a well -designed and marketed product can command a price premium and reap big profits.
Traditionally, price has been the major determinant of a buyers choice. This is still the case with large segment of buyers across the globe. Although nonprime factors have become quite important in the last few decades, price still remains an important factors in determining sales and profitability.

4.1 HOW COMPANIES PRICE:Companies do their pricing in a variety of walls. In small companies, price are often set by the boss. in large companies ,pricing is handled by division and product line managers. Even here ,top management sets general pricing objectives and policies and often approves the prices proposed by lower levels of management. In industries where pricing is a key factor. Companies will often establish a pricing department to set or assist others in determining appropriates prices. This department reports to the marketing department, finance department or top management. Executives complain that pricing is a big headache-and one that is getting worse by the day. Many companies do not handle pricing well. And throw up their hands at strategy like this, we determine our costs and take our industrys traditional margins. price is not varied enough for different product items, market segments, distribution channels and purchase occasions. Effectively designing and implementing pricing strategy requires a thorough understanding of consumer pricing psychology and a systematic approach to setting, adapting, and changing prices. Multinational face several pricing problems when selling abroad. They must deal with price escation, transfer prices, dumping charges and grey markets. When companies sell their products, they face a price escalation problem the company has to add the cost of transportation, tariffs, importer margin, whole seller margin and retailer margin to its factory price..depending on these added costs as well as the currency fluctuation risk, the product might have to sell for two to five times as much in another country to make the same profit for the manufacturer, because the cost escalation varies from country to country,the question is how to set the prices in different countries ,then companies have three choice,i.e. set a uniform price every where, set a market based price in each country, then lastly set a cost based price in each country.

4.2SELECTING THE PRICING OBJECTIVES:The company first decides where it wants to position its market offering. The clearer a firms objectives, the easier it is to set price. A company can pursue any of five major objectives through pricing: survival, maximum current profit, maximum market skimming or product quality leadership. These five things are given below:32

1.Survival:companies pursue survival as their major objectives if they are plagued with overcapacity, intense competition ,or changing consumer wants, as long as prices cover variable costs and some fixed costs ,the company stays in business. Survival is a short run objectives ;in the long term run, the firm must learn how to add value or face extinction. 2.Maximum current profit:Many companies try to set a price that will maximize current profits. They estimates the demand and costs associated with alternative prices and choose the price that produces maximum current profit ,cash flow ,or rate of return on investment .this strategy assumes that the firm has knowledge of its demand and cost functions; in reality these are difficult to estimates .in emphasizing current performances ,the company may sacrifice long run performance by ignoring the effects of other marketing mix variables, competitors reactions and legal restraints on prices. 3. Maximum market share:Some companies want to maximize their market share. They believe that higher sales volume will lead to lower units costs and higher long run profits. They set the lower prices ,assuming the market is price sensitive , The following conditions favor setting a low price: (1) The market is highly price sencitives,and a low price stimulates market growth; (2) Production and distribution costs fall with accumulated production experiences and (3) A low price discourages actual and potential competition. 4. Maximum market skimming:Companies unveiling a new technology favor setting high prices to maximize market skimming. Market skimming makes sense under the following conditions; (1) A sufficient member of buyers and have a high current demand. (2) The unit cost of producing a small volume are not so high that they cancel the advantages of charging what the traffic will bear. (3) The high initial price does not attract more competitions to the market. (4) The high price communication the image of a superior product. in this way we can concentrate on the pricing of our company.

CHAPTER-5
MRP:MRP is the important factor in any industry, because mrp is directly proportional to customers mrp varies according to the financial condition of the people. So the company should produce such type of product with a reliable mrp which will be affordable by all the types of customers, then if mrp is an important factor but all companies are not aware of about that. They have not suitable products to satisfying the need of every customer .here we will analyze about the price of five companies ,in which affordable mrp they are able to sell the best with good market share. We will put in to comparison the total sale of the company with mrp variation in percentage. Then we first concentrate on the mrp of Montex.

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5.1 MONTEX:Montex has all the variety of chocolate with different types mrp.Montex is selling with 0.25,0.50,rs-1/,rs2/,rs-5/,rs-10/ mrp chocolate in market but from total sale rs-0.50 mrp chocolate has 40%market share, Table:-9 Mrp in different range of products of Montex Mrp in different range 0.25 Rs-0.50 Rs-1/Rs-2/Rs-5/Rs-10/TotalMarket share in percentage 10% 40% 10% 05% 20% 15% 100%

Figure:-8 Market share in percentage of Montex

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By SWOT ANALYSIS:The over all evaluation of a company strengths,weakness,opportunites and threats is call SWOT analysis, by which we can compare with each other and find out which is the best in the confectionary market and what is their market strategy in this market. It involves monitoring the external and internal marketing environment. External environment consists of opportunity and threat analysis and internal environment based on strength and weakness. That are discussed below. Strength: In the strength ,it list the specific areas of current and future strength for the company.
market coverage innovation marketing product mix packaging pricing

physical distribution service level Weakness:It list the specific areas of current and future weakness for the company. Higher price compared to competition. Narrow product range Lower productivity compared to international standards. High personnel attrition rates. Opportunity: it list the external opportunity available in the company or business units current and future environment.
Political environment Social environment Economical environment Technological environment Natural environment

Legal environment
Threats:-in this block we list the external threats facing the company or unit now and in the future. The consumer demand The industries and competition Technology
So by the help of SWOT analysis we can analyze the companies strength,weakness,opportunities,and threats. By this analysis we can easily conclude that which has the best marketing strategy.

Then first of all about the confectionary company Montex Food Products.

6.1 MONTEX :We discuss about the Montex by the help of SWOT analysis, these are given below, Strength:-

It has strong brand name like coffe-bite,it is the strength of the company. Montex has a strong presence in the market.steady growth in sales. Semi state wise coverage;urban,and semi rural area covered. Small packs,big packs, and every range of products available in Montex. Chocopai is the only product of Montex which has no competitor in the market. There is big scope in future.

Weakness: Weak position in industrial confectionary; Montex is far behind the leader perfetti and Wrigley. Market share in confectionary is unsatisfactory. There is no advertisement or any strong punch line by which we can attract the customer very easily. Low distributors profile. Opportunity:

Economic reforms, liberalization and globalization carry good opportunities. Technology import has been liberalization. By technological import the company can meet the need for more information and advice A company can introduce the product very easily. Large domestic market size.
Rapid changes in consumption habits and lifestyles impose a degree of vulnerability on corporate.

Threats:

The legal process is rather slow. Consumers are becoming very choosy, while buying chocolates. Lucrative confectionary market attracts more competition. Duplicacy of brands is high in confectionary. Distributer bargaining power because of large no of similar product of different brand. Local brand products

MY FINDINGS

During the survey it was found that still there are 10% people who have not aware about Montex chocolates.

Lack of Awareness in consumers. Many people are not know about Montexs products specially they are not aware about the companys brand name i.e. Gold,specially children. There is lack of Sales Promotional Activities i.e. free tattoo, extra weight, toys, quiz contest etc. Other local brands are main competitor and strategically better performer than Montex. I found the main thing is that Gold brand name has very good image in consumers mind and they consider it as Pure & Good Product. People are known about Gold,they are not aware about, it is the product of Montex.and people are not aware about the Montexs other product, only Gold is the brand name.

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SUGGESTIONS

In order to maintain and increase the sales in the Mumbai city or in other cities of Maharashtra, then the following recommendations regarding Montex; particularly regarding distribution, promotional policies, etc, are hereby suggested: First and foremost Montex should take proper action in order to improve service. Montex should give local advertisements. Local advertisement must mention the exclusive Montex shops of the city. Try and change the perception of the people through word of mouth about Montex in local advertisements, because they are the best source to reach Children and families. Company should launch chocolate in new attractive packing to change image of Montex chocolate in consumers mind. Company should introduce sales promotion schemes like free weight, pranky, tattoo, contest, free gifts etc.

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Conclusion
The survey resulted into following conclusions :
Montex must come up with new promotional activities such that people become aware about Montex Chocolates like Emrale, Berry, Jeely-candy etc.

Quality is the dominating aspect which influences consumer to purchase Montex product, but prompt availability of other chocolate brands and aggressive promotional activities by others influences the consumer towards them and also leads to increase sales. In comparison to Montex, the other players provide a better availability and give competition to the hilt.
People are mostly satisfied with the overall quality of Montex, but for the existence in the local market Montex must use aggressive selling techniques.