The document summarizes a case study about the Sundaram Soap Company, which was established in 1935 and faced issues with its distribution system. The company distributed products through stockists, wholesalers, and retailers, but wholesalers also sold competitors' products. There were complaints about inconsistent pricing and discounts given without the company's knowledge. The document outlines strengths like a nationwide distribution network but also weaknesses such as improper distribution channels and competition undercutting prices. It poses questions about deficiencies in the system and recommendations to address distribution problems.

1. THE SUNDARAM SOAP
COMPANY CASE
PRESENTED BY :-
AJITA RAJPOOT
CHAHAT JAIN
ISHITA JAIN
PRESENTED TO :-
PROF. PRAGYA KESHARI

2. INTRODUCTION
 The case is about Sundaram Soap Company established in 1935.
 One of the leading manufacturer of soap and other related washing products.
 Companies head office and factory were situated in Bangalore.
 Branch office established in 1972 in Lucknow.
 The company distributed its product in Lucknow through stockists and wholesalers to
about 6000 retailers.
 Stockists dealt exclusively in four different area of market.
 Stockists were authorized by the company to sell-
1. Wholesaler
2. Retailer
 Wholesaler received 3% commission on placement of order of minimum Rs. 500.

3. DISTRIBUTION CHANNEL
Stockist Wholesaler
Retailer
End User
Company

4. STRENGTH
 Leading manufacturer of soap and other washing products.
 High reputation of company in the market.
 Established a nation-wide distribution organization.
 Better services given to dealer.
 Motivation to channel members.
 Good relations with channel members.
 High growth in Lucknow branch.
 Good distribution coverage in rural area as well.

5. WEAKNESS
 Wholesalers also distributed competitors product.
 Improper distribution channels.
 Complaints from distribution channel and customers.
 Different prices of same product in the market.
 Product sold at discounted price without company’s knowledge.
 Competition among wholesalers lead to undercutting.
 Wholesaler choose other companies items for investment.

6. OPPORTUNITIES
 Diversify into further FMCG products.
 More promotional offers for customers.
 Moving into new market segment that offer improved profits.

7. THREATS
 Unsatisfied customers due to indifferent prices.
 Threat of competition.
 Threat of ruining company’s reputation.

8. QUESTIONS
Q1. What are basic deficiencies in the existing distribution system of the company?
Ans. The deficiencies in the existing distribution system of the company are as
follows:
 Wholesalers also distributed other Companies products.
 Different prices of same product in the market.
 Product sold at discounted price without company’s knowledge.
 There was keen competition among the company’s wholesalers, which led to
undercutting.

9.  Some of the wholesalers sold their products to semi-wholesalers who had no
separate establishments of their own. There was a tendency among these
semi-wholesalers to evade sales tax on the products, which amounted to 4%
and to cut the prices.
 Stockists and wholesalers both distributed company's product to retailers
that created confusion.
QUESTIONS

10. Q2. What are the strengths and weaknesses of the marketing mix of
the company?
Ans.
QUESTIONS
Price:
Different prices
Place:
Improper distribution channel.
Promotion:
No promotional benefits for customers and
users.
Product:
High production capacity.
Place:
Distribution in rural area as well.
Promotion:
Free promotional aids to channel members;
proper display of company’s product.
STRENGTH
WEAKNESS

11. Q3. What steps would you recommend to the company to overcome their distribution
problems, and why?
Ans.
 Option 1 : To follow distribution channel as mentioned below:
Company
Stockist
Wholesaler
Retailer
End-user
QUESTIONS

12.  Option 2 : Eliminate the stockist from the channel.
 Because Wholesalers cannot be eliminated from the channel as they are
connected to retailers closely. As well they helped the Company to market its
product in rural areas as well.
 Strict actions to be taken against ones who surpasses the Company's Terms and
Conditions.
 Because this is the way they can have strict control over the channel
 Observe competitors distribution Strategy. How they are operating? What
flaws exist in our strategy ?
 Because you learn from competitors strategy and that’s the best way to find a
practical solution.
QUESTIONS