BBAIII 2

BBAIII shivaji university Kolhapur

BBAIII Shivaji univercity, Kolhapur

Chapter1 Introduction to study

1.1 Introduction- Distribution channel is path through which goods & services travel form to vender to the consumer or payment for those product travel from the consumer to the vender. A distribution channel can be as short as a direct transaction from the vender to consumer or may include several interconnected intermediaries. A long the way such as wholesaler, distributers, agent & retailer. Each intermediary receives the item at one pricing point & movies it to the next higher pricing point until it reaches the final buyer. Coffee does reach the consumer before first going through channel involving the farmer, exporter, importer, distributor & the retailer also called as distribution channel.

The operational success of a company depend not only on how well it perform in terms of production & sales but also on how well its entire channel of distribution compete with competitors channel . A company may produces the best product but still not do well if its dealers perform poorly in sales & services against the competitors dealers . A channel of distribution [or marketing channel ] is a sell of interdependent organization involved in the process of making a product or services available for use or consumption by the consumer or business user. Researcher has selected study of distributor channel of samruddhi to know the working of the distributor channel & its factors. 1.2 Objectives-1) To study the organization structure & information of samruddhi company.

2) To study & analyze existing structure of distribution cannel samruddhi company.

3) To study the channel of intermediaries.

4) To know the satisfactory level of the company towards the network/distribution channel.

5) To study the benefits/commission provided by company to distributors.

6) To find out the nature of conflicts & control within a distribution channel.

7) To study the different channel of distribution

1.3 Research Methodology

A study of distribution channel of Samruddhi Company with reference to Samruddhi Company.1] Primary Data-

Primary data are those which are called fresh & for the first time & thus happen to be original in character.

a] Interview to the manager.

b] Interview to the distributor.

c] Observation

2] Secondary Data-

Secondary data means data that are already available that is related to the data which have been collected & employed by someone elese.

A] Book

b] Companys website

c] Internet 1.4 Scope-

1) The geographical scope is restricted to MIRAJ MIDC (In Sangli District). 2) The objective scope is restricted & near by rural area only.

3) The subjective scope is restricted to study on distribution channel in marketing area. 4) The organization scope is restricted to Samruddhi Company.1.5 Significance

1] To know the distributors satisfaction level of the samruddhi company regarding to the network. 2] To find out the different distributors channel & working structure for the samruddhi company. 3] It will be reference for the new researchers in companies new channel member.

4] To know the different distribution methods of the samruddhi company.

1.6 Limitation-1] The study is the based on organization only therefore the scope of study is limited to the organization only.2) Many of the customers were not responsive3) The area of the study is restricted to sangli districts.

4) It is assumed that the information provided by customers are true & correct.

5) Some of the respondents were not serious about their feedback. Chapter2 Introduction to organization 2.1 Introduction to industry- Samruddhi industries limited is an ISO 9001:2008 certified manufacturer exporters, importers & supplier of plastic goods. The company was jointly formed by helper Mr.Ramakant Malu; Mr.Omprakash Malu & Mr. Pramod Malu in January 2001 the group of three jointly handles production, sales & marketing, account & finance department. Since the date of inception of the company. Plastic have transformed our live samruddhi industries is Indias. Leading manufacturing company of unbreakable plastic articles & many more plastic environment friendly industries has its presence across nation.

Samruddhis Head office situated at single {Maharashtra} which runs all the major operations to achieve & practices highest international standard of manufacturing & quality assurance. Companies infrastructure equipped with the four ultra technology plants showing their presence across nation in North, East, & South, western part in India.

2.2 History of the organization- Samruddhi industry limited has establishment in 8-9-1992. This is located in Sangli, Maharashtra this is categorized under in India. As per the last information this company is in samruddhi industries is registered corporate office is at plot number, A-1 J-98, M.I.D.C. Kupwad Block 416436.2.3 Company profileName of managing director - Mr.Ramakant Malu

Name of director - Mr.Omprakash Malu & Mr.Pramod Malu.

Year of establishment- - 8th September 1992. Nature of the business- Manufacturer, exporter, importer, & supplier. Name of employees Above 500.

Contact Us-

Mobile No- +91-9423677032 Fax- +91-233-2644903

E-mail address- [email protected] Website - http://www.samruddhiindustriesIdt.co.in Address - J/98 M.I.D.C. Kupwad. Head office - Sangli. 2.4 Products- 1) Plastic kitchenware 2] Plastic Ghamelas

3] Plastic Crates

4] Plastic Chairs

5] Plastic Bucket

6] Plastic Water drum

7] Plastic Milk can

8] Plastic Mat 9] Plastic Furniture 1] Plastic Chairs 2] Plastic Table 3] Multi Rack

4] Mini trolley 10] Plastic Kittle

11] Plastic Household Goods

2.5 Awards from Samruddhi Company- 2009-2010: EFY awards for Best Security System of the year 2009 & 2010.

2010: ET now India mart awards Leaders of tomorrow 2010 in electrical & electronic category.

2009: Elaina-Dun & Bradstreet awards for Entrepreneurial excellence 2009.

2008: Frost & Sullivan awards for Entrepreneurial company of the year 2007-cctv awards.

2006: Emerging security system integrator awards by Honble home minister shivraj Patel.

Udyog patra awards for Self made industrialist to door MD.

2.6 Subsidiaries, Associations of the company- 1} J-98/99, M.I.D.C. Kupwad Block, Dist-Sangli Maharashtra- 416436 (India).

2} Plot No-31 L.K.Akiwate Industrial Estates, Jaysingpur, Kolhapur-416144 Dist- Kolhapur Maharashtra (India).3} I.T.E Patanagar, sector G.Plot No.24&25, Rudrapur Dist-U.S.Nagar, Uttaranchal (India)4} Plot No.39&42, Industrial Park, Valasapalle-Madanpalle Mandal, and Dist- Chittor Andhra Pradesh.

2.7 Organization Structure Board of Director

Managing director

Unit manager

Production manager Finance manager HR manager

Supervisor Accountant

Workers ClerkChapter3 Theoretical Background3.1 Introduction to distribution channel- The operational success of a company depends not only on how well it performs in terms of production & sales but also on how well its entire channel of distribution compete with competitors channels. A company may produce the best product but still not do well if its dealers perform poorly in sales & services against the competitors dealers. A channel of distribution (or marketing channel) is A set of interdependent organization involved in the process of making a product or services available for use or consumption by the consumer or business users. When a product/services is purchased by a consumer, it may have been bought directly from the business, or it may have been through a number of intermediaries (Wholesaler, retailer etc) these are known as distribution channel.

3.2 Role & Important of channel - Channel of distribution (marketing channel) play an important role in marketing, because of many vital function performed by them. Effective & well managed channel provide sound competitive advantage to companies.

The necessity for channel of distribution arises because the product has to move to the customer from the factory, in the right quantity, at the right time & at the right place, Very few manufactures sell their goods directly to the final customers. The majority uses marketing channel or intermediary to move their product from the factory to the market.

A manufacturers decision on channel of distribution directly affects all other marketing decision. Through their contact, experience. Specialization & sale of operation, channel member normally offer the company more than it can achieve on its own.

Marketing channel transform the bulk assortment of products made by manufactures into small assortments wanted by the customer.3.3 Function of channel- Member of the marketing channel perform many key function, basically, they ensure physical distribution efficiency by bringing together the manufacturer & the customer in a cost effective manner.

1} Provide market information- Channel provides market intelligence & other information gathered from the market, to the manufacturers. Since they are in constant touch with the customers, they feel the pulse of the market & provide accurate information about market condition, trends, consumer preference, changing tastes, competitors activities etc,

2} Promotion-

Channels help the manufacturer by taking on the job of promotion. They develop & spread persuasive communications about a product to customers. Many retailers arrange window display, send direct mail to prospects, depute salesman to demonstrate product at residences & distribute product leaflets.

3} Contacts-

Channel helps by reducing the number of contacts needed for reaching consumer. No manufacturer can economically contact all the customers. The intermediaries find the customer & do the communication & selling to them. They use their own salesman to contact prospects & do personal selling.

4} Breaking bulk- Manufacturers produce & supply many products in Bulk but customer need them in small sizes, Channel break the bulk & meet the small size need of individual consumers. They also carry out grading & packaging in small lots according to the customers requirements.

5} Supply in assortments-

Consumers need an assortment of various products from various companies. Channel do the job combining products manufactured by different manufacturers & offer them in assortment that the convenient to customers. This function involves matching segments of supply with segments of demand.

6} Price negotiation- Channel member conduct price negotiations with buyers on behalf of the manufacturers & assist in reaching an agreement on price & other terms of the offer which are acceptable to both buyers & producer. For example manufacturers would have indicates a discount rate of 10-20% on maximum retail price for a product the dealer negotiates with the consumer & fixes the discount within that range.

7} Physical distribution- Some of the physical distribution functions like transportation, handling, warehousing, sub-distribution, order processing & inventory management are also carried out by marketing channel. 8} Risk taking- Channels absorb most of the business risk, especially the risk of failure to sell goods, product obsolescence, or changes in the price of the goods. This risk is bome by dealers.

9} Financing-

Channels help by extending credit to customers & ensuring sales. Also by maintaining inventories of products for manufacturers, they reduce their working capital requirement. For example in cement, paint & fertilizer, dealer often buy on cash & extend credit supplies to customer.

10} Selling-

Marketing channel member promote product to potential customers. They help in introducing & establishing new product in the market. Many buyers depend on the recommendation of the dealers. Other than persuasive selling the channel also helps by providing pre-sale & after sale service to the customers.3.4 Channel Level- A one level channel consists of one selling intermediately i.e. the retailer in consumer markets. For example Modem bread sold through provision stores.

A two level channel consist of two members i.e. the wholesaler as well as the retailer in consumers markets for example HLL, P&G, Soaps and Detergent etc.

A three level channel will contain three intermediaries i.e. Wholesaler, jobber & retailer. For example Philips appliances-C & F agents, distributors, retailer.

A] Consumer product- 1. Direct marketing channel or Zero level channels -: B] Indirect marketing channel

1. One level channel-

2. Two level channel-

C] Industrial product-

1. One level channel-

3.5 Retailing- Retailing includes all the activities involved in selling goods or services directly to final consumer for their personal non-business use. Any institution that dose this selling-whether a manufacturer, wholesaler or retailer is doing retailer. Retailer is any business enterprises whose sales volume primarily comes from retailer. Types of retailing-

Retailers can be classified based on the following characteristics-

1} Amount of services-

Various types of products require varying amount of services, & customers services preference vary. Based on their services, retailers can be self- service retailer (supermarket), limited-services retailer (shopping goods), & full-services retailer (specialty stores).

2} Product lines-

Classification of retailers can also be done by the length & breath of their product assortments. Speciality stores carry narrow product lines with deep assortments within those lines. Department stores carry a wide variety of product lines, & each line is operated as a separate department. Supermarkets are large low cost, low margine, high volume self service stores that carry a wide variety of food, laundry & household product. Convenience stores are small stores located near residential areas, open long hours, seven days a week & carry a limited line of high turnover convenience goods. A Superstore is a store much larger than a regular supermarket, & it carries a large assortment of routinely purchased food & non-food item & offers services such as dry cleaning, post offices, cheque cashing, bill paying, lunch and fast food counters, car care & even pet care.

3} Relative prices- Retailers can also be classified according to the price they charge. Most retailers charge regular prices & offer normal quality goods & customer services. Others offer higher quality goods & services at higher prices.

4} how they are organized- An increasing number of retail stores are banding together into a corporate or contractual organization. Corporate chain stores are two or more outlets that are commonly owned & controlled & sell similar lines of products & have centralized buying. Voluntary chains are wholesaler sponsored groups of retailer. Retailer co-operatives are independent retailers who set up a central buying organization & conduct a joint promotion effort.3.6 Wholesaling-Types of wholesaling-

Wholesaler can be classified into three major types they are-

1} Merchant wholesaler-

Merchant wholesalers account for 50% of all wholesaling. They include two types- Full-services wholesalers who provide a full set of services & limited services wholesaler who offer services to their suppliers & customers.

2} Broker & agent-

They do not take title to goods & they perform only a few function. They generally specialize by product line or customer types. A broker brings buyers & sellers together & assists in negotiation on commission basis. Agents represent buyers & sellers on a more permanent basis. Manufacturers agents are the most common type of agent wholesalers.

3} Manufacturers sales branches & offices- These are set up by manufacturers to conduct wholesaling operation by themselves. Separate branches& offices are dedicated to either sales or purchasing. 3.7 Types of distribution channel- The most common routes used for bringing the products in the markets from producer to consumer are as follows-

1) Manufacturer-consumer(Direct sale)-

There are three alternatives in direct sale to consumer:- a) sale through advertising & direct methods ( mail order selling ), b) sale through traveling sale force ( house to house canvassing) c) sale through retail shops of manufacturer e.g. mills cloths shops, Bata shoes company shops.

Usually we have numerous & scattered consumers who buy in very small quantities. Hence this channel is not popular for a wider market.

2) Manufacturer-retailer-ultimate consumer-

The channel option is preferable when buyers are large retailer e.g. a department store, discount house, change store, super market big mall order house or co-operative stores. The wholesaler can be by passed in this trade route. It is also suitable when products are perishable & speed in distribution is essential.

3) Manufacturer-wholesaler-retailer-consumer:-

This is a normal regular & popular channel option used in groceries, drugs, drug goods etc. It is suitable a producer under the given condition a) He has a narrow product line b) He his limited finance c) Wholesaler are specialized & can provide strong promotional support d) products are durable & not subject to physical deterioration or fashion change. 4) Manufacturer-agent-wholesaler-consumer:-

In this channel the producer uses the services of an agent middleman such as a sale selling agent for the initial dispersion of goods the agent in turn sell to retailer. An agent middleman sells on commission basis directly to wholesaler or large retailer. 5) Manufacturer-wholesaler-consumer/user:- Wholesaler may by pass retailer when there are large an institution buyers .For e.g. business buyer, government, consumer co-operatives or hospitals, educational institution business houses.

Chapter4 Data analysis & interpretation

1) From how many years you are working as distributors for Samruddhi Company? Sr noOptionResponsepercentage

11 Year or less320%

23 to 5 Year533%

31 to 3 Year320%

4More than 5 Year427%

Total15100%

Table no-4.1

Interpretation-

Few of distributors have joined Samruddhi Company recently & few have joined earlier before 3 years. Means few are freshers & other are experienced in same company.

2) Is there any compulsion/restriction on quantity of product to be purchased by you?Sr no.Option ResponsePercentage

1Yes853%

2No747%

Total15100

Table no-4.2

Interpretation- From this above chart, it is clear that nearly half of distributors are restricted to buy specific quantity of product to purchase while few have no such restriction on it.they can buy as per their requirements.

3) Is there any regional distributor superior that you?Sr noOptionResponsepercentage

1Yes1173%

2No427%

Total15100

Table no-4.3

Interpretation- Nearly half of the employees have regional superior distributors over them & remaining half doesnt have the superior distributor over them.

4) Do you get discount/concession on the basis of quantity of product you buy?

Sr no Option ResponsePercentage

1Yes960%

2No640%

Total15100%

Table no-4.4

Interpretation-

From this above chart, it is clear that, more than half of respondent gets discount on the basis of quantity of product they buy but few doesnt get that offer. E.g. If distributors buy more quantity of product they will get more % of discount.

5) Are you satisfied with the profit margin you get per product?Sr no,OptionResponsepercentage

1Highly satisfied320%

2Satisfied640%

3Neutral213%

4Dissatisfied17%

5Highly dissatisfied320%

Total15100%

Table no-4.5

Interpretation- Nearly more than half distributors are in satisfactory range about the profit margin they get per product & remaining are yet dissatisfied.6) Are you satisfied with companys service?Sr noOptionResponse% of respondence

1Highly satisfied17%

2Satisfied533%

3Neutral533%

4Dissatisfied320%

5Highly dissatisfied17%

Total15100%

Table no-4.6

Interpretations-

The above diagram shows that more are distributors are satisfied from companys services facilities.7% of the distributors few in highly dissatisfied.20% distributors are dissatisfied with companies services these are expected from the commission, discount to the product.

7) Are you satisfied with sale efforts of the company?Sr noOptionResponse% of respondence

1Highly satisfied533%

2Satisfied320%

3Neutral427%

4Dissatisfied17%

5Highly dissatisfied13%

Total15100%

Table no-4.7

Interpretation- It shows that the distributors are highly satisfied with the sales efforts because they are highly satisfied with the sales commission. a very few of the distributors are not satisfied with sales efforts.

8) Do you have any sales force?

Sr noOptionResponse% of respondence

1Yes847%

2No753%

Total15100%

Table no-4.8

Interpretation- From this chart, it is seen that the responses are divided equally into two groups; half of distributors says yes, they have their own sales force & remaining half dont have their own sales force. 9) Are you satisfied with the overall sales of the product of the company?Sr noOptionResponse% of respondence

1Highly satisfied320%

2Satisfied213%

3Neutral427%

4Dissatisfied320%

5Highly dissatisfied320%

Total15100%

Table no-4.9

Interpretation-

From this above chart, the 20% are highly satisfied & also same percent of distributor are dissatisfied with companies overall sales of the product remaining have neutral opinion about overall sales of product of company.

10) Other than samruddhi do you have any other companys distributorship?

Sr noOption Response% of respondence

1Yes640%

2No960%

Total15100%

Table no-4.10

Interpretation-

From above this chart, that more than half ratio of distributors doesnt have other distributorship than samruddhi but few of them are distributors of other company.

11) Which companys distributorship you have?Sr noOptionResponse% of respondence

1samruddhi640%

2Other960%

Total15100%

Table no- 4.11

Interpretation- It is observed that more distributors have distributorship of other company also while other has distributorship of Samruddhi Company.12) How wide your dealers network is?Sr noOptionResponse% of respondence

1In city427%

2In small town533%

3Both640%

Total15100%

Table no-4.12

Interpretation-

From this above chart, it is clear the dealers network that in city, small town, both areas it is help for the wide range of distributions channel.

13) Do you have your retail sales counter too?Sr noOption Response% of respondence

1Yes1173%

2No427%

Total15100%

Table no-4.13

Interpretation- It shows that almost all distributors have their own retail shop of samruddhi products i.e. they are also retailers of the products but very few dont have their own retail shops.

14) Are you satisfied with the credit policy of the company?Sr noOption Response% of respondence

1Highly satisfied320%

2Satisfied17%

3Neutral213%

4dissatisfied640%

5Highly dissatisfied320%

Total15100%

Table no -4.14

Interpretation- It was found that out of distributors more than half of the distributors respond that they are satisfied with the policy of Samruddhi Company remaining of the respondent were not satisfied with some of the things related with the distribution credit policy of company.

15) Does the company shares the cost of your sales personnel?Sr noOption Response% of respondence

1Yes640%

2No960%

Total15100%

Table no-4.15

Interpretation-

Few of the distributors say that samruddhi company shares the cost of the sales personnel but few doesnt acquire with same.

16) Dose Promotion of product is your responsibility?

Sr noOptionResponse% of respondence

1Yes960%

2No640%

Total15100%

Table no-4.16

Interpretation-

It is observed that more than responsibility of the product promotion is upto the distributors but others doesnt take the responsibility of promotion of product.

Chapter5 Finding & observation

5.1 finding - 1) Most of the distributors sell only Samruddhi Companys product.

2) Different distributors covers different areas form the distributors.

3) Most of customer prefers plastic products of Samruddhi Company4) The publicity done by the company is attractive & the promotional activities conducted to promote the brand are good.

5) The customers prefers samruddhi product because it has good quality followed reasonable price & quantity.

6) The dealers/distributors get supply of the products even if demanded Uren gently promptly.

7) The customers are satisfied with the distribution of channel because the company gives attractive discount to the customer & good service.

8) Company provides the credit facility to some distributors.

5.2 Observation-1) It is observed that there is the good relationship between manager & customer.

2) The campus of the company is pollution free.3) Company focus as on the customer satisfaction.

4) It is observed that all the machinery are well maintained.

5) company working strategy is well defined.Chapter6 Conclusion & suggestion

6.1-Suggestion- 1) Target setting can be concentrated by the samruddhi company.

2) After sales services play important role in selling of Samruddhi Company. Company can take that factor as promotional tool and therefore prompt after sales service should be provided by the company.

3) The company should try to co-ordinate activities between the distributors & the dealers. Company should try to make sure that there is no problem.

4) It is suggested that company should provide credit facility to maximum distributors.

5) The distribution channel should be backed up by the store facility at the taluka level. It will reduce the logistic line.

6.2 Conclusion- Researcher has concluded that the distributor of the Samruddhi product is the lifetime between the company & the end users. i.e. the customers. The supply chain of the company should be like that there should not be less supply & there should not be more than supply chain. than the required quantity. Also the company should try to keep cordial relations between them. It will positively effect on the working of the dealers & the distributorsBIBLIOGRAPHYReference books-

1) Marketing management

By-Verma .M.M, Nair.N.rajan (1995 sultanchand and sons New Delhi)

2) Marketing management

By kotler.philip

3) Services marketing By S.M.Jha

(Himalaya publishing house)

Website-

WWW.samruddhi.com Search engine- WWW.google.comRetailer

Manufacturer

Consumer

Manufacturer

Consumer

Manufacturer

Wholesaler

Jobber

Retailer

Consumer

Manufacturer

Manufacturer,

Representative or

Sales officer

Industrial

Distributors or

Agent

Manufacturer

Representative

Or sales officer

Industrial user

5 Highly

Dissatisfied

4 Dissatisfied

3 Neutral

2 Satisfied

1 Highly satisfied

30%

25%

20%

15%

10%

5%

0%

20%

20%

27%

13%

20%

% of respondence

3

2

1

Both

In small town

In city

45%

40%

35%

30%

25%

20%

15%

10%

5%

0%

40%

33%

27%

Dealers Network

2No

1Yes

40%

60%

Share the cost of sales personnel

2 No

1Yes

60%

40%

Promotion of the product

Compulsion/restriction

53%

47%

1 Yes

2 No

% of response

2

1

other

Samruddhi

70%

60%

50%

40%

30%

20%

10%

0%

60%

40%

Companies Distributorship

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