Feasibility Study of Imported Biscuits

Feasibility Study of Imported Biscuits

1. BACKGROUND

There are many brands of biscuit available in the market. The market not only offers the biscuits manufactured in Nepal but also the biscuits which are exported from abroad. Even under the same brand name, the manufactures have introduced varieties considering different tastes preferred by different people.

This study focuses particularly on some of the popular brands of biscuits such as Britania, Parle, Priyagold etc which are exported from India to find out the market condition of such products and the potential market prospect for the similar kinds of product.

2. STUDY OBJECTIVES

The study has been conducted with the following objectives:

i. To explore the available brands of biscuits in the market exported from abroad (especially India) and the product lines offered by these brands.

ii. To find out the market price of the various brands available in the market.

iii. To find out the market share of the various brands of these biscuits available in the market and their expiry date.

iv. To find out the distribution channels being mostly used by the retailers and their pricing policy.

3. STUDY METHODOLOGY

The study is conducted through the direct interview with the retailers offering customers with the different brands of exported biscuits. The sample of 50 retailers is selected for the research purpose. The judgmental sampling method is used. Only the retailers of exported biscuits of the brands being focused in the study are considered.

According to the need of the study a formal interview with a structured questionnaire as well as an informal conversation regarding the topic is conducted to get as much information as possible.

The study is also f...

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...the figure the products are imported from the importer then distributed to the stores through the distributors.

Parle have the licensed importer for its product in Nepal who distributes the product to about 40 distributors who further provide the stores with the products.

But the products are also being imported through the individuals without any license for it. There are so many importers who are involved in the business but are not visible as they do not have any license for it. Most of the distributors do not agree to disclose the source through which they are getting the products.

The profit margins which the channels claim to be getting from various brands are:

Products Profit Margin of different channels

Importer Distributors Retailers

Parle 8% 7%-10% 5%to10%

Britannia Unknown 8%-10% 4%to10%

Priyagold Unknown 8%-10% 5%to10%

Duke 2-4% 2-4% 2-4%