An Irate

Distributor
Gro 9
Rit Meh           M A21231
Sam Ro t          M A21236
May Ag a w   M A21218
Om Pra h Beh   M A21224
Ne r Dha           M A21162
Shi k Roh     M A21240
Sh u Vet             M A21249
Dar k                 M A21258
 Synopsis
NutriPack India Ltd. was founded in 1994 and is a division of the food firm NutriPack Limited, located in the United States.
The firm planned to enter India, a developing market, to look for growth prospects since the growth in developed markets
was stagnant with a CAGR of 8%. In fact, the company achieved a CAGR of 18%. NutriPack India has a staff base of 600,
with a turnover of INR 7.5 billion, with great development potential to succeed in the branded nutritious food market. The
original two brands, NutriPower and NutriJams, were considered to be expanded to the creation of other superbrands as
they accounted for 71% of the revenue in India. Although there were many rivals in the HFD and jams areas, including
Healthy, Bonny, Junior Healthy, and in each of the categories, Mazaa, Keswani Products, and Northrange. For the sake of
e ciency, NutriPack has split India into 4 regions: North, East, West, and South. These regions differ not only in terms of
geography but also in terms of the variety of cultures that they represent.

Amit Kumar, the area sales manager of NutriPack India, is struggling with how to capitalise on unrealized potential and
open the door for the FMCG sector to see exponential development. Following a thorough study and examination of the
reports Rahul Ray provided, Kumar was able to match the data's numerous demographic and psychographic
characteristics with the consumer categories at the state and district levels. Through this, he hoped to evaluate NutriPack's
store presence and identify a strategy to boost sales.One of NutriPack's primary distributors, Sachin Mandore of the
Sachin Agency, was in charge of the business affairs in the Maharashtra area of Jalgaon, which contributed significantly
to company income. Sachin took highly proactive steps to expand the distribution network's penetration, which led to an
almost 6-fold rise in NutriPack's Jalgaon sales. With only 2 salesmen at the time, he was now able to cover 750 locations,
but Kumar saw that his rivals had 1800 outlets, giving them a considerably greater reach
 What is the background on the retail trade in India and the
situation in which Amit Kumar has taken over his territory?

Background of Retail in India

One of the fastest-growing markets About 6 million retail shops made There was diversity in the channels
in the world, the Indian retail up India's well-established utilized to contact clients as well as in
business was estimated to be worth distribution network. The number terms of geography, culture, and both.
$470 billion in 2011. At a CAGR of 7.5 of levels of middlemen in the India requires a variety of retail
percent, it was projected to increase distribution process was probably formats for ease of distribution due to
to $675 billion by 2016. at least four or five. these factors as well as the country's
vast geography.

India is a country with relatively small Increased emphasis by the Reaching consumers throughout the
family-run businesses. It also has company on growth in the rural entire nation and making sure that
distinctive retail models like grocers, area of the nation, which was their products were easily accessible
paan stores, and hawkers that home to about two-thirds of the posed the biggest di culty for any
coexisted with supermarkets and entire population. FMCG company.
teleshopping.
 Intermediaries in FMCG Distribution in India

NUTRIPACK
INDIA LTD.

C & FA

SUPER
DISTRIBUTOR DISTRIBUTOR

SUB
DISTRIBUTOR

WHOLESALER

REATILER
(URBAN AND RURAL)
 Situation in which Kumar has taken over his Territory

Last quarter, Amit Kumar replaced Rahul Ray as CEO of the company, which generated
a yearly revenue of INR 631.1 million.

Rahul Ray was crucial in establishing NutriPack India's company in central Maharashtra,
which grew from INR 300 million in 2008 to INR 631.1 million in 2011, with a Compound
Annual Growth Rate (CAGR) of 32% compared to the rest of India at 21 percent.

It would be a di cult effort for Amit Kumar to advance the growth. His employer,
Shyam Sharma (RSM), warned him against making significant changes to multiple
territories at once and urged him to keep the company's risk exposure to reasonable
levels.

In addition to developing infrastructure, Kumar has to concentrate on extending store

reach.

India had a challenging retail distribution system, and the Jalgaon market was notorious
for its huge volume and razor-thin profit margins.

The distributor for the Jalgaon district, Sachin Mandore, had to defend his increased
investment with NutriPack India as well as the distributor's profitability, in Kumar's
opinion.
 Q2. How did Kumar choose the Jalgaon district for the
expansion plan in his territory?

• In terms of population, Jalgaon is rated second

• but when measured in terms of the value they provide to the business, they are placed fourth.

• Low penetration gives them a chance to expand into a larger market and provide value to the
business.

• The per capita income in these ten districts is 16210, which places it third.

• For the past four years, Nutri Jam has dominated the central Maharashtra jams market.

• However, Jalgaon's product is inferior than Mazaa's.

• The product's volume and value market share are declining.

• The value market share for the top two brands was equal in 2008, but it had decreased during
the previous four years.
3.  Analyze the different perspectives of Kumar and Mandore regarding their approaches
to Going to Market?
Perspective of Kumar:
● Kumar felt that the Jalgaon territory was performing below its potential and could effectively
contribute more. Needed more efforts from intermediaries especially in Jalgaon region.
● For this Kumar wanted the master distributor to invest more on infrastructure to appoint more
dealers and increase presence in existing ones to generate volume.
● While analyzing the previous year's data for his territory, Amit Kumar realized that as
NutriPack India had coverage of 750 outlets in the Jalgaon district – while its nearest
competitors already had a presence in over 1,800 outlets with a similar portfolio of products –
retail coverage was the weakest link.
● No credit period- Interior retails complained about credit period, schemes & discounts were not
uniform.

Perspective of Mandore:
● Low profitability due to which there is no incentive to work. Working on a margin of just 4.5%,
he can make a profit of just 2.6% after deducting his expenses.
● While he extended credited for 15 days, the company gave him 14 days of credit - not viable
for him to extend large credit.
● His second discounts were delayed by long - reducing profitability and adding more dealers.
● Believed in relationship market with large dealers - who could payback on time, order high
volume.
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