Parle Produtcts Pvt Ltd

1
A SUMMER INTERNSHIP REPORT
ON
A COMPARATIVE STUDY ON FMCG DISTRIBUTION IN
GUWAHATI
Submitted By:-
DAVID DAS
Roll No:-
384/14
In partial fulfillment of Summer Internship for the award of the degree
of
MBA
(Master of Business Administration)
Gauhati University
(2014-16)
Faculty Guide: OrganizationalGuide:
Mr. Samir Sarkar Mr. Rahul Sinha
Associate Professor Area Sales Manager,
Department of Business Administration, Parle Products Pvt. Ltd,
Gauhati University, Guwahati Guwahati

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CERTIFICATE
Certified that the summer internship project report “A COMPARATIVE STUDY ON FMCG
DISTRIBUTION IN GUWAHATI” is the bonafide work of “David Das, Roll No 384/14,
3rd Semester MBA in Gauhati University, Guwahati carried out under my supervision during
June 2015 to July 2015.
Place: (Signature of the Supervisor)
Date:

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CONTENTS Page No
Chapter 1: EXECUTIVE SUMMARY 5
Chapter 2: COMPANY PROFILE 7
Chapter 3: RESEARCH OBJECTIVE 14
Chapter 4: METHODOLOGY USED 16
Chapter 5: ANALYSIS OF DIFFERENT FMCG DISTRIBUTORS 19
Chapter 6: FINDINGS 43
Chapter 7: LIMITATIONS 45
Chapter 8: RECOMMENDATIONS 47
Chapter 9: SUMMARY 49
a) QUESTIONNAIRE 51
b) List of Respondents 53
c) SWOT Analysis 67
d) BIBLIOGRAPHY 69

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ACKNOWLEDGEMENT
The feeling of gratefulness to any one’s help directly arises from the bottom of heart. A small
but an important and timely help can prove to be a milestone in one’s life. This report is
dedicated to all the people, whom I met, took guidance, talked, interviewed and learned
something from them.
On this occasion, I sincerely thank all of them while submitting this project report. I would
like to thank Mr. Rahul Sinha Sir, (Area Sales Manager, Parle) who has provided me the
necessary information and guidance for success of this project. I would like to thank Mr.
Samir Sarkar Sir (Faculty Guide), without whom this would have not been possible. I am
thankful to all of them for giving time to time and valuable guidance during the project period
and giving me the guidance in taking the curriculum decision and choosing, initiating and
getting on with the project. Also, a deep sense of gratitude from the apex of my heart to Dr.
Manoj Kumar Choudhury Sir, (HOD, Department of Business Administration, Gauhati
University), for his encouragement and knowledge imparted during the course of my study
and for the completion of the project. And last but not the least, I always have felt the
invisible help from the almighty. Without the blessings of the almighty, I could not have
succeeded.
DAVID DAS

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Institutional Guide: Mr Samir Sarkar
Organizational Guide: Mr Rahul Sinha
Title of the project: To study about the FMCG distribution of various companies, its scopes
and challenges.
Organization: Parle Products Pvt. Ltd
Fatashil Main Road, Guwahati
Period: The duration of the internship was 2 months from June 2015 to July 2015.
Market Area Surveyed: Guwahati
Types of Research: Exploratory and Descriptive
Sampling Technique: Convenience Sampling
Sample Size: 56
Data Collection Methods: Primary and Secondary
Statistical Tools: Percentage Methods, Bar Diagrams
Research Tool: Questionnaire

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Emerging markets like India are different from developed markets. These markets are often
characterized by specific local needs, limited purchasing power and high price sensitivity. In
emerging economies, to make up for the absence of well-developed markets for labour and
capital, firms may have to create their own infrastructure. Specifically, unlike established
companies in developed markets, Indian companies are facing the challenge of structuring the
new product development processes in an environment of limited design skills and
experience. Few qualified vendors and inappropriate engineering resources. At the same time,
they are constrained by limited financial and human resources, a lack of a market orientation,
strong centralized control by business family heads, functional chimneys without deep
functional expertise, and pressures to change on numerous fronts all at once to cope with the
competitive environment (FMCG).
FMCG Sector in India
Fast Moving Consumer Goods (FMCG) can be defined as packed goods that are consumed or
sold at regular and small intervals. The prices of the FMCG are relatively less and profits
earned through such sales are more volume based. The organized FMCG retailing in India is
a new concept and is fast catching up in urban and semi-urban India. The FMCG Sector in
India has witnessed a range of recent developments. Tax deductions on various items, rise in
the penetration levels and per capita consumption are some of the major developments in
FMCG. The FMCG Sector in India is the fourth largest sector in the Indian economy. As per
the reports of the 2005-06 financial years, the market size of the sector was registered as USD
13.1 billion. The FMCG Sector in India involves a strict competition between the organized
and unorganized sectors of consumer durables. India offers an abundance of raw materials
(Some product categories such as jams, toothpaste, skin care products, hair care products, etc.
have experienced a low per capital consumption as per a report presented in 2006.), low-
priced labor costs, and also has a presence across the entire value chain.
Approximately 200 million people are expected to become the consumers of processed and
packaged foods by the year 2010.The major activities of the food-processing sector are
permitted 100% foreign equity or 100% NRI and Overseas Corporate Bodies (OCB)
investment to meet the rising demand of the consumers. In the year 2012 (Table.1), the recent
developments in FMCG, it is assumed that the consumption of the FMCG products will have
a satisfactorily growth with the rising income level of Indian populace in both the rural and
urban areas. The market size of the Indian FMCG Sector is expected to reach USD 33.4
billion by the year 2015. The Indian government has declared several tax sops for the FMCG

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sector in India. It has emphasized on the infrastructural developments in the same. The
consumption of health and personal care products in FMCG sector has increased in the recent
past with rise in disposable income especially among the early stages group in India. A few
of the FMCG product are:
Toiletries
Soaps and detergents
Cleaning and disinfecting agents
Cosmetics
Non-durables
Pharmaceuticals
Further, the packaged food products and drinks are also sold under the FMCG, since these
items are consumed or bought at regular intervals. Furthermore, recently the electronic items
like mobile phones, MP3 players, external hard drives, etc., which has less life owing to its
technological development, has also been brought under the gamut of FMCG sector.
About Parle
Parle Products is an Indian private limited company. It owns the famous biscuit brand Parle-
G. As of 2012, it had a 35% dominant share of the Indian biscuit market. Parle Products has
been India’s largest manufacturer of biscuits and confectionery for almost 80 years. Makers
of the world’s largest selling biscuit, Parle-G, and a host of other very popular brands, the
Parle name symbolizes quality, nutrition and great taste. On an average 4551 Parle G biscuits
are consumed per second and an astonishing 1432 billion biscuits are produced per year.
With a 40% share of the total biscuit market and a 15% share of the total confectionary
market in India, Parle has grown to become a multi-million dollar company. Currently, Parle
Products has over 33, 00,000 distribution outlets.
History
Parle Products Company was founded in 1929 in British India. It was owned by the Chauhan
family of Vile Parle, Mumbai. Parle began manufacturing biscuits in 1939. In 1947, when
India became independent, the company launched an ad campaign, showcasing its Gluco
biscuits as an Indian alternative to the British biscuits. The Parle brand became well known in
India following the success of products such as the Parle-G biscuits and the Thumbs Up soft
drink.

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The original Parle company was split into three separate companies, owned by the different
factions of the original Chauhan family:[3]
 Parle Products, led by Vijay, Sharad and Raj Chauhan (owner of the brands Parle-G,
Melody, Mango Bite, Poppins, Kismi toffee bar, Monaco and KrackJack)
 Parle Agro, led by Prakash Chauhan and his daughters Schauna, Alisha and Nadia
(owner of the brands such as Frooti and Appy)
 Parle Bisleri, led by Ramesh Chauhan
All three companies continue to use the family trademark name "Parle". The original Parle
group was amicably segregated into three non-competing businesses. But a dispute over the
use of "Parle" brand arose, when Parle Agro diversified into the confectionary business, thus
becoming a competitor to Parle Products. In February 2008, Parle Products sued Parle Agro
for using the brand Parle for competing confectionary products. Later, Parle Agro launched
its confectionery products under a new design which did not include the Parle brand name.[4]
In 2009, the Bombay High Court ruled that Parle Agro can sell its confectionery brands under
the brand name "Parle" or "Parle Confi" on condition that it clearly specifies that its products
belong to a separate company, which has no relationship with Parle Products.
Brands
Biscuits: Parle-G, KrackJack, Monaco, Kreams, Golden Arcs, Parle Marie, Milk Shakti,
Parle Hide & Seek Bourbon, Parle Hide & Seek Fab, Top, Parle Gold Star, Nimkin, Happy
Happy, Coconut, Jam-In, Parle Rusk, Milano Minis ,Kreams /Kreams Gold ,Milano , 20-2-
Cookies ,Golden Arcs , Top, Parle –G Gold , Happy Happy Creams, Simply Good
Sweet confectionery
Melody, Mango Bite, Orange Bite, Kaccha Mango Bite , Poppins, 2 in 1 Eclairs,
Mazelo, Kismi Toffee Bar, London Derry
Snacks
Monaco Smart Chips, Parle's Wafers, Full toss, Parle Namkeens.
Since they have been entered at the food competition of Monde Selection in 1971, the brands
have received consistently gold and silver Quality Awards at the World Quality Selections.

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Quality
Hygiene is the precursor to every process at Parle. From husking the wheat and melting the
sugar to delivering the final products to supermarkets and store shelves nationwide, care is
taken at every step to ensure the best product of long-lasting freshness. Every batch of
biscuits, confectioneries & snacks are thoroughly checked by expert staff, using the most
modern equipment. This ensures consistent and perfect quality across the nation and abroad.
Concentrating on consumer tastes and preferences, the Parle brand has grown from strength
to strength ever since its inception. The factories at Bahadurgarh, Haryana and Neemrana,
Rajasthan are the largest biscuit and confectionery plants in the country. The factory in
Mumbai was the first to be set up, followed soon by the one in Bangalore, Karnataka. Parle
also has 10 manufacturing units for biscuits and 75 manufacturing units for confectioneries
on contract.
Core Values
An in-depth understanding of the Indian consumer psyche has helped Parle develop a
marketing philosophy that reflects the needs of the Indian masses. With products created
bearing in mind both health and taste, Parle products equally appeal to fun loving kids &
youth. Even today, the great tradition of taste and nutrition is consistent in every pack on the
store shelves. The value-for-money positioning allows people from all classes and age groups
to enjoy Parle products to the fullest.
Infrastructure
Apart from the original factory in Mumbai, Parle has manufacturing facilities at Neemrana
(Rajasthan), Bangalore (Karnataka), Kutch (Gujarat), Khopoli (Maharashtra) and
Bahadurgarh (Haryana). It also has several manufacturing units on contract.
Challenges
Parle Products has 9 factories, more than 100 contract factories and distributors and
approximately 45 Lakh retail outlets. The challenge was to have a holistic view of
transactions, one had to hop across several screens to make a sense out of it. To take a
decision Parle needed to compare the given brand across timeline which is normally 24

12
months. It was a very time consuming process to fetch individual reports from ERP, also the
result was not very conclusive at most times.
Managing shortfalls at specific locations was another key challenge, as the goods had to be
manually shifted based on requirements, the process was time consuming and needed more
accuracy. This also created a strong need for opting a Business Intelligence solution.
Website:
www.parleproducts.com
Company Size: 10,001 + employees
Industry:
Food & Beverages

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VISION
The main vision of parle is to concentrate on consumer taste and preferences, the parle brand
have grown from strength to strength ever since its inception. For fulfilling its vision they do
every batch of biscuits and confectionaries are thoroughly checked by expert staff using the
most modern equipment hence ensuring the same perfect quality across the nation and
abroad.
MISSION
For over 65 years, Parle has been a part of every Indian. From the snowcapped mountains in
the north to the sultry towns in the south, from frenetic cities to laid back villages, Parle has
nourished strengthened and delighted millions. Various people have various reasons to
consume it; some consume it for the value it offers while other consumes it for sheer taste.
For some it is a meal substitute, for others it is a taste healthy nourishing snack. Patronized by
millions for all these qualities, it is much more than just a biscuit brand. Wonder why it is the
world’s largest biscuit brand.

14
CHAPTER: 3
RESEARCH OBJECTIVE

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 To know about the distribution of the products of various FMCGcompanies
 To understand the various issues related to the distribution process.
 To determine the scopes and challenges faced by different distributors

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Data Collection
A sample size of 56 distributors of different fmcg companies was taken. The survey was
conducted in the area Guwahati Area
DataSources
A quota sampling technique was adopted because the sample audience was made out of
potential purchasers of the product. The sample was carefully drafted. A lot of care was taken
when designing the questionnaire and also when collecting information
PRIMARY DATA
The primary data consists of information obtained from the distributors
SECONDARY DATA
The secondary data is obtained from the information already published in newspaper articles,
blogs and books. The websites like www.parleproducts.com, scribd.com, Wikipedia .com etc.
were also useful
METHODS OF DATA COLLECTION
The data collected is by the use of questionnaire and personal interview.
The source of the data collected for the research is both primary data and secondary data.
Primary Data
Observation Method
This data was collected by visiting the distributors of different FMCG companies in
Guwahati City.
The data was collected on the following parameters:
 Noofoutlets and areacovered in Guwahati City
 Noof delivery man and salesperson employed
 Costincurred bythe distributor
 Turnover ofthe distributor, wholesale and retail contribution

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ByPersonal Interviews
The data was collected by visiting each and every fmcg distributors. The information was
taken by talking to the manager or proprietor of the distributors. The objective of this was to
know about how well the distribution is carried out in different part of the city.. The questions
were open ended as well as close – ended
Sample Size = 56 distributors (21 companies)
TYPE OF RESEARCH: Exploratory and Descriptive type
STATISTICAL TOOLS AND TECHNIQUES
The data collected has been analyzed and interpreted using statistical tools such as table,
percentage, various charts, and diagrams.

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CHAPTER: 5
ANALYSIS OF DIFFERENT FMCG DISTRIBUTORS

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PARLE
Turnover per month (approx.) per distributor:
Azara Rajgarh Macchkhowa Rehabari Average Turnover
10,00,000 15,00,000 12,00,000 20,00,000 1425000
Data Interpretation: From the above chart, it is seen that the average turnover of Parle
distributor is above Rs 14.2 lakhs.
Costincurred per month (approx.)
Azara Rajgarh Macchkhowa Rehabari Total
Operating Cost 10,000 15,000 15,000 22000 62000
Manpower Cost 25,000 30,000 25,000 36000 116,000
Distribution Cost 15,000 10,000 15,000 10000 50000
Total Cost 50000 55000 55000 68000 228000
Average Cost = Rs (50000+55000+55000+68000)/4
=Rs.57000
Here, Operating cost is 27.19 % of the total cost.
Manpower cost is 50.8 % of the total cost
Distribution cost is 21.9 % of the total cost
NESTLE
Turnover per month (approx.) per distributor
Azara Fancy Bazar Ambari
Fatashil
Panbazar Bhetapara Kahilipara Average
Turnover
15lakhs 85 lakhs 75 lakhs 50 lakhs 20 lakhs 1.5 crore 6583333.3
Data Interpretation: The average turnover of nestle distributor is above Rs 65 lakhs

21
Azara Fancy
Bazar
Ambari
Fatashil
Panbazar Bhetapara Kahilipara Total
Operating
Cost
15,000 28,000 50000 40000 20000 25000 178000
Manpower
Cost
10,000 80,000 150000 30 lakhs 25000 223000 3488000
Distribution
Cost
10,000 18,000 40000 25000 15000 30000 138000
Total Cost 35000 126000 240000 3065000 60000 278000 3804000
Average Cost = Rs (35000+126000+240000+3065000+60000+278000)/6
= Rs 634000
Here Operating Cost is 4.67 % of the total cost
Manpower Cost is 91.69 % of the total cost
Distribution Cost is 3.62 % of the total cost
CADBURY’S
Azara Ganeshguri Average Turnover
700000 15 lakhs 1100000
Data Interpretation: The average turnover of cadbury’s distributor is Rs 1100000.
Azara Ganeshguri Total
Operating Cost 10,000 25000 35000
Manpower Cost 26,000 40000 66000
Distribution Cost 46,400 38000 84400
Total Cost 82400 103000 185400

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Average Cost = Rs (82400+103000)/2
= Rs 92700
ITC
Maligaon Ganeshguri Fancy Bazar Average Turnover
10,00,000 3.5 crore 1 crore 50 lakhs 17000000
Data Interpretation: The average turnover of ITC is above Rs 1 crore.
Maligaon Ganeshguri Fancy Bazar Total
Operating Cost 50000 2.5 lakhs 2 lakhs 5,00,000
Manpower Cost 30000 4 lakhs 2.3 lakhs 660000
Distribution Cost 20000 80,000 Above 4 lakhs 500000
Total Cost 100000 730000 830000 1660000
Average Cost = Rs (100000 + 730000 + 830000)/3
= Rs 553333.3

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BRITANNIA
Data Interpretation: The average turnover of Britannia is above 26 lakhs
Azara Ambari Fatashil Kahilipara Total
Operating Cost 10000 20000 35000 65000
Manpower Cost 38500 42000 40000 120500
Distribution
Cost
18500 20000 25000 63500
Total Cost 67000 82000 100000 249000
Average Cost = Rs (67000 + 82000 + 100000)/3
= Rs 83000
AMUL
Data Interpretation: The average turnover is above Rs 1 crore
Azara Ambari Fatashil Kahilipara Average
Turnover
26,00,000 44 lakhs 10 lakhs 2666666.6
VIP Bhetapara Sixmile Ambari Fatashil Fancy Bazar Average
Turnover
20,00,000 2500000 Above 2
crore
40,00,000 3 crore 14625000

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Vip Bhetapara Sixmile Ambari
Fatashil
Fancy
Bazar
Total
Operating Cost 20,000 25000 20000 20000 40000 125000
Manpower Cost 25,000 26000 200000 60000 65000 376000
Distribution Cost 10,000 15000 20000 35000 30000 110000
Total Cost 55000 66000 240000 115000 135000 611000
Average Cost= Rs (55000+66000+240000+115000+135000)/5
= Rs 122200
HINDUSTAN UNILEVER LIMITED
Data Interpretation: The average turnover of HUL is above Rs 3 crore.
Kahilipara Fancy Bazar Total
Operating Cost 2 lakhs 2.4 lakhs 440000
Manpower Cost 2.5 lakhs 2 lakhs 450000
Distribution Cost 70,000 87600 157600
Total Cost 520000 527600 1047600
Average Cost= Rs (520000+527600)/2
= Rs 523800
Kahilipara Fancy Bazar Average Turnover
3 crore 3.5 crore 32500000

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Here Operating Cost is 42 % of the total cost
HORLICKS
Data Interpretation: The average turnover of Horlicks is above Rs 82.5 lakhs.
Lakhiminagar, Hatigaon Ambari Fatashil Total
Operating Cost 70,000 25000 95000
Manpower Cost 100000 70000 170000
Distribution Cost 40000 6000 46000
Total Cost 210000 101000 311000
Average Cost = Rs (210000 + 101000)/2
= Rs 155500
Lakhiminagar, Hatigaon Ambari Fatashil Average
Turnover
70 lakhs 95 Lakhs 8250000

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BAJAJ CONSUMER PRODUCTS
Turnover per month (approx.)
Data Interpretation: The turnover of Bajaj Consumer Products is Rs 8.5 lakhs
Bhetapara Total
Operating Cost 15,000 15000
Manpower Cost 10,000 10000
Distribution Cost 10,000 10000
Total Cost 35000 35000
Average Cost = Rs 35000
LOREAL
Data Interpretation: The Turnover of Loreal is Rs 1 Lakh
Bhetapara
8.5 Lakhs
Bhetapara
1 Lakh

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Bhetapara Total
Operating Cost 10000 10000
Manpower Cost 30000 30000
Distribution Cost 10000 10000
Here Operating Cost is 20% of the total cost
Manpower Cost is 60 % of the total cost
Distribution Cost is 20 % of the total cost
DABUR
Data Interpretation : The Turnover of Dabur is Rs 60 Lakhs
Lachit nagar Total
Total Cost 220000 220000
Manpower Cost is 50 % of the total cost
Lachitnagar
60 Lakhs

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AGROTECH FOOD LTD
Data Interpretation: The turnover of Agrotech Food Ltd is Rs 12 Lakhs
Lachitnagar Total
Average Cost= Rs 43000
FRITOLAYS (PEPSICO INDIA LTD)
Lachitnagar Down Town, Dispur Total
Operating Cost 14000 10000 24000
Manpower Cost 40000 21000 61000
Lachitnagar
12 Lakhs
Lachitnagar Down Town, Dispur Average Turnover
60 lakhs 21 lakhs 4050000

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Total Cost 60000 46000 106000
Average Cost = Rs (60000+ 46000)/2
= Rs 53000
HALDIRAM’S
Data Interpretation: The Turnover of Haldiram’s is Rs 1600000
Fancy Bazar ABC, Bhangagarh Ganeshguri Total
Operating Cost 14 lakhs 15 lakhs 10000 2910000
Manpower Cost 95000 76000 20000 191000
Distribution Cost 60000 80000 10000 150000
Total Cost 1555000 1656000 40000 3251000
Average Cost = Rs (1555000+1656000+40000)/3
= Rs 1083666.6
Here Operating Cost is 89.5 % of the Total Cost
Manpower Cost is 5.87 % of the Total Cost
Distribution Cost is 4.61 % of the Total Cost
Fancy Bazar ABC,Bhangagarh Ganeshguri Average Turnover
3.5 crore 7 lakhs 6 Lakhs 1600000

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JOHNSON’S AND JOHNSON’S
Data Interpretation: The Turnover of Johnson’s and Johnson’s is Rs 625000
Lakhiminagar Ganeshguri Total
Operating Cost 80000 88000 168000
Manpower Cost 56000 50000 106000
Total Cost 174000 182000 356000
Average Cost= Rs (174000+ 182000)/2
= Rs 178000
NIVEA
Data interpretation: The total turnover of Nivea is above Rs 17 lakhs
Lakhiminagar Ganeshguri Average Turnover
6 lakhs 6.5 lakhs 625000
Ganeshguri Fancy Bazar Average Turnover

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Ganeshguri Fancy Bazar Total
Manpower Cost 35000 20000 55000
Total Cost 78000 55000 133000
Average Cost = Rs (78000+ 55000)/2
= Rs 66500
KELLOG’S
Macchkhowa Total
Total Cost 122000 122000
Macchkhowa
6 lakhs

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COLGATE PALMOLIVE INDIA LTD
Manipuri Basti Paltan Bazar Total
Manpower Cost 60000 40000 100000
Total Cost 110000 55000 165000
Average Cost= Rs (110000 + 55000)/2
= Rs 82500
BISKFARM
Down Town, Dispur Total
Manipuri Basti Paltan Bazar Average Turnover
Down Town, Dispur
25 lakhs

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Here Operating Cost is 40 % of the Total Cost
Manpower Cost is 44 % of the Total Cost
Distribution Cost is 16 % of the Total Cost
PEPSI
Panjabari Total
Manpower Cost 2 lakhs 2,00,000
Total Cost 361000 361000
Distribution Cost is 21 % of the Total Cost
Panjabari
96 Crore

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Analysis of Percentages of the Costs Involved:
Nestle Cadbury ITC Britannia Amul HUL Horlicks Bajaj
C.
Prod
Biskfarm
Operating
Cost
27.9 4.67 18.8 30.1 26.1 20.4 42 30.5 42.8 40
Manpower
Cost
50.8 91.69 35.5 39.7 48.3 61.5 42.9 54.6 28.5 44
Distribution
Cost
21.9 3.62 45.5 45.5 25.5 18.0 15.043 14.7 28.5 16
Loreal Dabur Agrotech Fritolay Haldiram
’s
J&J Pepsi Nivea Kellog’s Colgate
Palmolive
Operating
Cost
20 27.2 23.2 22.6 89.5 47.19 23.5 33.8 32.7 24.2
Manpow.
Cost
60 50 69.7 57.5 5.87 29.77 55.4 41.3 40.9 60.6
Dist.
Cost
20 22.7 6.97 19.8 4.61 23.03 21 24.8 26.2 15.15
Data Interpretation:
Haldiram’s has the highest percentage of Operating Cost of 89.5 %
Nestle has the highest percentage of Manpower Cost of 91.69 %
Cadbury and ITC has the highest percentage of Dist. Cost of 45.5 %
Comparison of Percentage Values of Operating, Manpower, Distribution Costs

35
0
10
20
30
40
50
60
70
80
90
100
Nestle Cadbury ITC Britannia Amul HUL Horlicks Bajaj C.
Prod
Biskfarm
0
10
20
30
40
50
60
70
80
90
100
Operating Cost
Manpower Cost
Dist. Cost

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TURNOVER OF VARIOUS DISTRIBUTORS (in Rs)
Parle
Cadburys'
Britannia
HUL
Bajaj Consumer Products
Dabur
Fritolays
Johnson's and Johnson's
Kellog's
0 10000000 20000000 30000000
Sales
Sales
Parle 1425000
Nestle 6583333.3
Cadburys' 1100000
ITC 17000000
Britannia 2666666.6
Amul 14625000
HUL 32500000
Horlicks 8250000
Bajaj ConsumerProducts 850000
Loreal 100000
Dabur 6000000
AgrotechFoodLtd 1200000
Fritolays 4050000
Haldiram's 1600000
Johnson'sandJohnson's 625000
Nivea 1750000
Kellog's 600000
Colgate Palmolive IndiaLtd 3250000

37
Average Cost per Month of Various Distributors
From the histogram it is seen that HUL has the highest turnover among all the fmcg
companies, followed by ITC and Amul.
 Delivery man Employed
0
200000
400000
600000
800000
1000000
1200000
Average Cost
0
10
20
30
40
50
60
70
80
90

38
Data Interpretation: Pepsi has the highest number of delivery man employed with 78 in
number, followed by HUL with 61 delivery men.
Noof DeliveryMan
Parle 8
Biskfarm 2
Nestle 41
Pepsi 78
Haldiram's 7
Amul 41
Britannia 13
Nivea 4
Fritolays 7
Cadbury 3
ITC 38
HUL 61
Horlicks 12
Bajaj ConsumerProducts 6
Loreal 3
Dabur 6
AgrotechFood 2
Colgate Palmolive 6
N o o f S a l e s P e r s o n s
0 20 40 60 80 100
Parle
Nestle
Haldiram's
Britannia
Fritolays
ITC
Horlicks
Loreal
Agrotech Foods
No of sales person
No of sales person

39
Data Interpretation: ITC has the highest number of sales person employed with 87, followed
by Pepsi with 46.
 How long has the distributor been associated with the company?
Total distributors: 56
No of sales
person
Parle 15
Biskfarm 2
Nestle 24
Pepsi 46
Haldiram's 14
Amul 17
Britannia 21
Nivea 1
Fritolays 3
Cadbury's 3
ITC 87
HUL 23
Horlicks 11
Bajaj Consumer
Products 7
Loreal 3
Dabur 5
Agrotech Foods 3
Kellog's 4
0-5YRS 35
6-10 YRS 9
11-30 YRS 11
MORE THAN 30 YRS 1

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 Does the distributor use Company’s MIS Software?
T o t a l D i s t r i b u t o r : 5 6
YES 37
NO 19
Wholesale Contribution
COMPANY AVERAGE W/S CONTRIBUTION
PARLE 36.6%
BISK FARM 50%
NESTLE 39%
PEPSI NIL
HALDIRAM’S 60%
AMUL 35%
BRITANNIA 32%
NIVEA 70%
FRITOLAYS 67.5%
COLGATE PALMOLIVE 30%
HORLICKS 40%
KELLOGG’S 65%
CADBURY’S 65%
ITC 30%
HUL 20%
BAJAJ CONSUMER PRODUCTS 30%
LOREAL 10%
DABUR 35%
AGROTECH FOODS 35%
R e t a i l C o n t r i b u t i o n
AVERAGE RETAIL CONTRIBUTION
PARLE 63.3%
BISK FARM 50%
NESTLE 61%
PEPSI 100%
HALDIRAM’S 40%
AMUL 65%
BRITANNIA 68%
NIVEA 30%
FRITOLAYS 32.5%
COLGATE PALMOLIVE 70%

41
HORLICKS 60%
KELLOGG’S 35%
CADBURY’S 35%
ITC 70%
HUL 80%
BAJAJ CONSUMER PRODUCTS 70%
GARNIER 90%
DABUR 65%
AGROTECH FOODS 65%
O u t l e t s
PARLE 582
BISKFARM 200
NESTLE 3287
PEPSI 5000
HALDIRAM 130
AMUL 1332
BRITANNIA 1530
NIVEA 38
FRITOLAYS 500
COLGATE PALMOLIVE 1321
HORLICKS 2350
KELLOG’S 30
CADBURY’S 200
ITC 4400
HUL 2300
BAJAJ CONSUMER PRODUCTS 800
LOREAL 200
DABUR 675
AGROTECH FOODS LTD 500

42
Company Distribution Diagram
Companies
NestleParle
Dabur
Cadbury’s
Loreal
ITC
Bajaj Consumer
Products
Horlicks
Britannia
HUL Amul
AgrotechFoodsPvt
Ltd.
Fritolays
Haldiram’s
Johnsonsand
Johnsons
Pepsi
Nivea
Kellog’s
Biskfarm
Colgate Palmolive
PvtLtd.

44
 HUL has the highest turnover (32500000) in Guwahati city compared to all other
FMCG distributors while Parle turnover is Rs 1425000
 Haldiram’s has the highest percentage of Operating Cost of 89.5 %
 Nestle has the highest percentage of Manpower Cost of 91.69 %
 Cadbury and ITC has the highest percentage of Dist. Cost of 45.5 % but ,
Parle: Operating cost is 27.19 % of the total cost.
Manpower cost is 50.8 % of the total cost
Distribution cost is 21.9 % of the total cost
 Pepsi has the highest number of delivery person employed (78) as compared to Parle
(8)
 ITC has the highest number of sales person employed (87) as compared with parle
(15)
 Highest wholesale contribution is Nivea (70 %) as compared to Parle (36.6 %)
 Pepsi has highest retail contribution (100 %) as compared to Parle (63.3 %)
 Pepsi covers highest number of outlets (5000) as compared to Parle (582)

46
 The data collection has been confined only to Guwahati City. So the data cannot be
taken as general truth.
 Distributors were least interested to answer during business time.

48
Parle should increase its no of distributors, especially in eastern part of the city i.e
Ganeshguri side where the situation is worst beyond imagination.
The present distributors should provide the products on time to the retailers. Complaints
regarding delivering of unordered products and also receiving less no of products as
compared to the quantity ordered are being heard. So, this should be taken care of.
Company policy of parle regarding distribution margin, damage policy is not great as
compared to other companies. So, this is an important point to be taken care of in order to
retain customers.
Companies like ITC are doing good inspite of having just 3 distributors namely: Ganeshguri,
Maligaon, and Fancy Bazar. They supply products on time, proper qty and the area each of
them covers is large. So Parle should follow the technique of permitting the distributors to
increase its area and its outlets.
Challenges faced by FMCG distributors
- Manpower problem
- Inventory Management
- High Expenses (Transportation)
- Reducing supply chain costs by reducing intermediaries

50
I have studied and analyzed the FMCG distribution of parle products and also compared it with the distribution
of other FMCG companies on different aspects of the markets, outlets, distribution and consumers. The 2
months of summer internship with parle actually helped me to learn various things that would really be
helpful in my life for future growth. This project shows me the way to work in the market .How to
communicate with different type of people .How to convince one for better job .Learnt how to sell, how things
work in Fast moving Consumer goods .having perishable nature of these product one need a excellent
distribution network and carefully select market because these product if transferred to far area then
cost attached to the product will make it un competitive. According to me the growth of any product
whether it could be food based product or anything depends upon how we do proper branding of
that product and also the promotion which plays a very vital role in attracting customers. The
main goal should be to attract customer and to retain them so that the loyalty maintains in future as well.
Besides this quality is the dominating aspect which influences consumer to purchase Parle product, but
prompt availability of other brands and aggressive promotional activities by others influences
the consumer towards them and also leads to increase sales. Ultimately I must say that I am
privileged towork in the company like Parle and get such areal time exposure ofFMCG company

51
QUESTIONNAIRE FOR THE DISTRIBUTOR
 Name of the Proprietor: ..............................................................
 Company-----------------------------------------------------------------
 Distributor………………………………………………………
 Address: .........................................................................................
 Contact No. : .........................
1. How many salespersons are employed in this distributor chain for the company?
0 to 5 6-10 more than 10
2. How long have you been associated with this company?
0 to 5 yrs. 6 to 10 yrs. 10 to 20 yrs. More than 30 yrs.
3. Are you satisfied with the facilities provided by the company?
Yes No
4. How many delivery man are employed for this distributor chain?
0 to 5 6 to 10 more than 10
5. What are the costs involved with the company per month?
Operating Cost_____________
Manpower Cost ______________
Distribution Cost_______________
6. Does the company give any subsidies?
Yes No
7. If yes, what kind of subsidies do you avail by the company?
____________________________________________
8. What is the damage policy does the company use for its product?
Weekly Twice in a month between 3 to 5 months
More than 6 months

52
9. What claim settlement policy does the company use?
_________________________________________
10. Are you using any MIS Software of the company? If yes, mention the name.
Yes No ____________________________________
11. What is the turnover of your distributor?
___________________________________________________
12. What is the total wholesale contribution?
0-20% 21-40% 41-60% above 60%
13. What is the total retail contribution?
0-20% 21-40% 41-60% above 60%
14. How many outlets are under your coverage for the company?
0-100 101-300 301-500 above 500
15. What is the average distributor margin of the company?
1-2% 3-4% above 4%
16. How much the average retail margin does the retailer seeks from the company?
1-2% 3-4% 5-6% above 6%
17. Specify the area you cover in Guwahati?
_________________________________________
18. Do you have any suggestions regarding the company’s service?
__________________________________________

53
INFO. ABOUT DISTRIBUTORS VISITED
Area: GAUHATI UNIVERSITY TO LGBI AIRPORT
1. Name of the Proprietor: Nabajit Kalita
Area: Kahikuchi, Azara, Ghy -17
Company: CADBURY
Distributor Name: Jeet Enterprise
Contact No: Not Available
2. Name of the Proprietor: Nabajit Kalita
Area: Kahikuchi, Azara, Ghy -17
Company: GODREJ CONSUMER PRODUCTS
Distributor Name: Jeet Enterprise
3. Name of the Proprietor: Rajiv Sarma Baruah
Area: Kahikuchi Shankar Path, Azara, Ghy -17
Company: PARLE
Distributor Name: Ascent Enterprise
Contact No: 9707588004
4. Name of the Proprietor: Anup Sarma
Area: Kahikuchi Shankar Path, Azara, Ghy -17
Company: BRITANNIA
Distributor Name: Anup Enterprise ,

54
5. Name of the Proprietor: Dipankar Kashyap
Area: SOS Road, Azara, Guwahati
Company: AMUL
Distributor Name: Abhidip Enterprise
6. Name of the Proprietor: Adbhut Kumar Tiwari
Area: Kalitapara, Azara, Guwahati.
Company: NESTLE
Distributor Name: Tiwari Enterprise
Area: MALIGAON
7. Name of the Proprietor: GOPAL CHOUDHURY
Area: Maligaon, Gate No 1, beside Pragjyoti Cinema Hall
Company: ITC
Distributor Name: Shree Krishna Distributor
8. Name of the Proprietor: BAPAN DAS
Area: Kamakhya Colony, Pandu Bara Bazar, Guwahati
Company: ANNAPURNA
Distributor Name: Sanny Enterprise,

55
Area: GANESHGURI
9. Name of the Proprietor: PAWAN AGARWAL
Area: Ganeshguri Kachari Basti, Dispur College Road, GMC Road
Company: ITC
Distributor Name: OM Distributor
10. Name of the Proprietor: BARUN SHARMA
Area: Ganeshguri, Hengrabari
Company: HALDIRAM’S
Distributor Name: Rajdhani Enterprise
11. Name of the Proprietor: JAYANTA KUMAR MAHANTA
Area: Ganeshguri, R.G Baruah Road (Near Punjab National Bank)
Company: JOHNSON’S AND JOHNSON’S
Distributor Name: M/S Swagat Enterprise
Company: KELLOG’S
Distributor Name: M/S Swagat Enterprise,

56
Company: CADBURY
Company: NIVEA
Company: EMAMI
Company: MARICO

57
Company: S C JOHNSON
Company: LEONARDO
Company: DHARA
Area: KAHILIPARA, JATIA
20. Name of the Proprietor: LAXMI DEVI KUMAR PRAJAPAT
Area: Navarun Path, Jatia, Kahilipara.
Company: HINDUSTAN UNILEVER LIMITED
Distributor Name: Eastern Enterprise

58
21. Name of the Proprietor: LAXMI DEVI KUMAR PRAJAPAT
Area: Lakhiminagar, Hatigaon, Ghy-38
Company: HORLICKS
Distributor Name: Eastern Agency
22. Name of the Proprietor: VIMLESH KUMAR
Area: Jatia, Kahilipara, Mandakini Path, House No-260
Company: NESTLE INDIA LTD
Distributor Name: M/S DHA Associates
Contact No: 0361 2385699
23. Name of the Proprietor: VIMLESH KUMAR
Area: Jatia, Kahilipara.
Company: BRITANNIA
Distributor Name: M/S DHA Associates
Area: HATIGAON, BHETAPARA
24. Name of the Proprietor: DILIP BARMAN
Area: H/No – 30, Bhetapara, Ghy
Company: AMUL
Distributor Name: PD Enterprise

59
25. Name of the Proprietor: DILIP BARMAN
Area: H/No – 30, Bhetapara, Ghy
Company: BRITANNIA
Distributor Name: PD Enterprise
26. Name of the Proprietor: LACHIT HAZARIKA
Area: Vishnu Rabha Path, Near Bridge, Opposite Shiv Mandir, Bhetapara,Ghy
Company: BAJAJ CORPORATION LTD
Distributor Name: Joymoti Agency
27. Name of the Proprietor: LACHIT HAZARIKA
Area: Vishnu Rabha Path, Near Bridge, Opposite Shiv Mandir, Bhetapara,Ghy
Company: EMAMI
Distributor Name: Joymoti Agency
28. Name of the Proprietor: B. KALITA
Area: Bhetapara, Maharishi Vidya Mandir Barsajai Path
Company: GARNIER
Distributor Name: NK Enterprise

60
Area: PANJABARI, SIX MILE, DOWNTOWN
29. Name of the Proprietor: KANGKAN SAHARIA
Area: Six Mile (Near Overbridge)
Company: AMUL
Distributor Name: Brahniman Sales
30. Name of the Proprietor: RAVI KANT JAIPURIA
Area: Panjabari
Company: PEPSI (Varun Beverages Ltd.)
Distributor Name: Sellwell Foods and Beverages Pvt. Ltd.
Contact No: 0361 2338383
31. Name of the Proprietor: RUPAM MAHANTA
Area: House No-13, Bhaskar Jyoti Path, Mathura Nagar, Dispur, Ghy 06
Company: BISKFARM
Distributor Name: Mahabahu Traders
32. Name of the Proprietor: RUPAM MAHANTA
Area: House No-13, Bhaskar Jyoti Path, Mathura Nagar, Dispur, Ghy 06
Company: PEPSICO INDIA LTD (FRITOLAYS)
Distributor Name: Mahabahu Traders

61
Area: LACHIT NAGAR, BHANGAGARH, ULUBARI
33. Name of the Proprietor: Biswajit Barman
Area: D Neog Path House, No-6, ABC, Bhangagarh
Distributor Name: N B Trade and Agency
34. Name of the Proprietor: DWIJEN KR. DAS
Area: Lachit Nagar, Ghy
Company: DABUR
Distributor Name: Mahalaya Marketing
Company: AGROTECH FOODS LTD.
Distributor Name: Mahalaya Marketing
Company: PEPSICO INDIA LTD (FRITOLAYS)
Distributor Name: Mahalaya Marketing , Contact No: 9954050540

62
Area: FANCY BAZAR
37. Name of the Proprietor: SUNIL PAREEK
Area: Bargola Market, M S Road , Fancy Bazar, Ghy
Company: NIVEA INDIA PVT LTD.
Distributor Name: Amit Agency (RC & Sons)
Area: Bargola Market, M S Road , Fancy Bazar, Ghy
Company: COLGATE
Area: Bargola Market, M S Road, Fancy Bazar, Ghy
Company: PALMOLIVE
Company: SC JOHNSONS

63
Company: LOREAL INDIA LTD.
42. Name of the Proprietor: N M GHORAWAT
Area: 32 TR Phookan
Company: AMUL
Distributor Name: Milapchand Hiralal and Sons
43. Name of the Proprietor: PAWAN KR. AGARWAL
Area: Fancy Bazar
Company: ITC
Distributor Name: Mahadevlal Hariram Pvt. Ltd.
44. Name of the Proprietor: ANKUR JAIN
Area: Fancy Bazar, 16, Kyal Market, T R Phookan Road
Company: NESTLE
Distributor Name: Shubh Pragya Marketing

64
45. Name of the Proprietor: ANKUR JAIN
Area: Fancy Bazar, 16, Kyal Market,T R Phookan Road
Distributor Name: ABM Associates
Area: PANBAZAR
46. Name of the Proprietor: SANTANU DASGUPTA
Area: S.C Goswami Road, Panbazar, Ghy-01
Company: AMUL
Distributor Name: Lucky Distributor’s
Area: PALTANBAZAR
47. Name of the Proprietor: A BUDDHAJIT SINGH
Area: Manipuri Basti KC Patowary Road
Company: COLGATE PALMOLIVE INDIA LTD
Distributor Name: M/S A Buddhajit Singh
48. Name of the Proprietor: GAUTAM DAS
Area: Paltanbazar
Company: COLGATE PALMOLIVE INDIA LTD
Distributor Name: PD Agencies
Contact No: 03612739718

65
Area: KUMARPARA, FATASHIL AMBARI, DHIRENPARA
49. Name of the Proprietor: RAJENDRA PRASAD GUPTA
Area: A.K Deb Road, Ambari Fatashil, Dhirenpara
Company: NESTLE
Distributor Name: Galaxy Scales and systems pvt. ltd
50. Name of the Proprietor: ASHOK KUMAR JAIN
Area: Fatashil Ambari, Near Coal Depot
Company: HORLICKS
Distributor Name: Anjana Distributors
Contact No: 0361-2491927
51. Name of the Proprietor: KAPIL SHARMA
Area: Fatashil Ambari, Nizraban Path, A.K Deb Road, Ghy-25
Company: BRITANNIA
Distributor Name: Ramdeo Associates
Contact No: 0361 2492212
52. Name of the Proprietor: BIKASH BAJAJ
Area: Fatashil
Company: AMUL
Distributor Name: Prime Asia Logistic, Contact No: 9085315952

66
52. Name of the Proprietor: MANISH KR. BAIRASIA
Area: Rehabari, Ghy
Company: PARLE
Distributor Name: S.C Business Combine
53. Name of the Proprietor: POONAM KR. TANEJA
Area: H B Road, Macchkhowa, Ghy-781009
Company: PARLE
Distributor Name: Taneja and Co.
Contact No: 0361 -2544669
Area: H B Road, Macchkhowa,Ghy-781009
Company: DHARA
Contact No: 0361 -2544669
Company: KELLOG’S
Contact No: 0361 -2544669
Company: PARLE
Contact No: 0361 -2544669

67
SWOTANALYSIS
STRENGTH:-
Brand Loyalty for brands like Parle-G, Monaco, 20-20 etc.
Presence of a large number of retailer outlets for the distributor.
There is no area wise biasness among the distributors.
Products are cheaper as compared to other companies, so the consumers generally prefer all
those.
WEAKNESS:
Lack of proper distributor in prime city centers like Ganeshguri, Chandmari, Six Mile and
Khanapara.
Irregular distributor service.
STRENGHTH
SWOT
OPPORTUNITY
THREATS
WEAKNESSS

68
Worst damage policies as compared to other brands.
Irregular receive of products from CNF to the distributors, which results in improper
distribution to the retailers.
Rapid change of distributors results in heavy loss incurred by the retailers.
OPPORTUNITIES:
Scope for area wise market capture by different distributors.
Improving the schemes, periodic product delivery and damage policies may result in
reaffirming the faith among the distributors.
THREATS:
Loss of consumers and retailers due to persistent problems, and affirming other brands like
Britannia, ITC rather than PARLE.
Decrease market share

69
BIBLIOGRAPHY
 Kothari , C.R, (2009), “Research Methodology, Methods and Technique ,” Second
Revised Edition, New Age International Publishers, New Delhi.
 www.parleproducts.com
 https://en.wikipedia.org/wiki/Parle_Products
 www.wikipedia.com
 www.slideshare.net
 Marketing Management by Philip Kotler
 https://www.scribd.com
 www.salesandmarketing.com
 www.freebookcentre.net

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