Study of effectiveness of distribution channel


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Study of effectiveness of distribution channel

  1. 1. 1 A PROJECT REPORT ON A Stu dy of Effectiven ess of Distribu tion Ch an n el of Lijjat Papad FOR (SHRI MAHILA GRIHA UDTOG LIJJAT PAPAD, PUNE) Submitted to the University of Pune in partial fulfillment of the degree Master In Business Adm inistration SUBMITTED BY: - MANISH LALCHAND PATIL (2005-2007) VISHWAKARMA INSTITUTE OF MANAGEMENT PUNE - 411048
  2. 2. 2 Sr. No. Particulars Page No. Company History 1 1 Research Design 1.1 Introduction of Study 7 1.2 Objective of Study 9 1.3 Scope of Study 10 1.4 Importance of Study 11 1.5 Data Details 12 1.6 Simple Size 13 1.7 Limitation of Study 14 2 Analysis & Interpretation of data 2.1 Introduction 15 2.2 Analysis & Interpretation for Distributors 16 2.3 Analysis & Interpretation for Wholesalers 20 2.4 Analysis & Interpretation for Retailers 25 2.5 Analysis & Interpretation for Customers 30 3 Findings, Conclusions & Suggestion 3.1 Introduction 35 3.2 Findings 36 3.3 Conclusions 38 3.4 Suggestion 40 4 Questionnaires 42 5 Bibliography 55
  3. 3. 3 INDEX
  4. 4. 4
  5. 5. 5 Company Profile: Lijjat organization is a women's organization. It is an organization- of the women, by the women and for the women. It was started in 1959 with 7 lady members with a borrowed sum of Rs. 80/- in Mumbai. The turning point of the Institution was in 1966 when it was registered under the Bombay Public Trust Act 1950 and also registered under Societies Registration Act, 1860 and got recognition from Khadi & Village Industries Commission as a village industry. The objective of the Institution is to provide employment to the ladies to enable them to earn decent and dignified livelihood. Any women who can render physical work in this Institution without distinction of caste, creed and colour and agrees to abide by the objective of the Institution can become a member of the Institution from the date on which she starts working. Papad production work starts at early hours in the morning i.e. 4.30 a.m. Institution has a mini bus, which picks up the members from the closest point of residence to the branch and back home. Every branch is headed by a Sanchalika to see the production of the branch. They have a Central Managing Committee, which consist of 21 members out of, which we have 6 (Six) elected Office Bearers i.e. President, Vice - President, 2 (Two) Secretaries and 2 (Two) Treasurers. All the branches are autonomous units for the purpose of profitability and the profit or loss as the case may be of such unit is borne by the owner sister members of that branch by increasing or decreasing their rolling charges accordingly. The credit for rapid progress goes to the constant vigilance on the part of sister members maintaining the quality of Lijjat Papad with their hard work. Besides Lijjat Papad the Institution has other products like Khakhra, Masala, Wadi, Detergent Powder & Cakes, Bakery Products & Chapaties. At present it has 63 Branches & 40
  6. 6. 6 Divisions and gives self-employment to about 40,000 sister members all over India with Sales turnover of Rs. 300 Crores which includes Rs. 12 Crores of Exports. The exports are made through Merchant Exporters to countries like UK, USA, Middle East Countries, Thailand, Singapore, Hongkong, Holland, Australia and other Countries. The Institution has received an award from Khadi & Village Industries Commission as a "Best Village Industry" for the period 1998-1999 to 2000-2001. On 6th September 2003 the Institution has received the Economic Times Award of "Businesswomen of the Year 2001-02 for Corporate Excellence". In January 2003 they received the award for 'Best Village Industries' at the hands of Hon'ble Prime Minister Shri Atal Behari Vajpayee at New Delhi. Lijjat was featured in various T.V. Channels, which include BBC World in the programme "Business Bizarre". The Institution, over the years, has paved the way for women to become self-reliant and self- confident. Lijjat has provided them the right platform to improve their status in society. The success of Shri Mahila Griha Udyog Lijjat Papad (now onwards Lijjat) lies, among other things, in its ability to offer self-employment opportunities to women at all its 61 branches. Any woman looking for work can approach any of Lijjat s branches and join the 40,000 plus strong team of Lijjat s sister-members without any fuss, and earn Rs 2,000 to Rs 3,000 every month for her roughly six hours of work everyday from home. That such a system did not collapse under the weight of its growing number of workers but, on the contrary, gathered strength from them and became a shining example of a business based on the sound but apparently impractical Gandhian concept of Sarvodaya and trusteeship is the biggest surprise element in Lijjat s success story. The company has grown into a corporate with an annual turnover of Rs 300 crore for many years.
  7. 7. 7 Mumbai has 12,000 members, the rest of Maharashtra has 22,000, and Gujarat has between 5,000 and 7,000 members. All sister members of the institution are the owners. All profit or loss is shared. The Central Managing Committee has only the authority to decide the manner in which profit or loss should be apportioned among sister members. As a business enterprise, the declining sales figure for three consecutive years Rs 298 crore (1999-2000), Rs 288 crore (2000-2001), Rs 281 crore (2001-2002) & in 2004-2005 it s Rs-300 crore is a matter of concern for Lijjat management. A growing competitive local market has captured some of its home turf in Maharashtra and Gujarat. But Lijjat has also expanded to the North Delhi, Punjab, Himachal Pradesh and, with the latest branch in Jammu, to the Kashmir market as well. Though each branch is responsible for the marketing of its products in the areas allotted to it, the new centralized marketing offices now procure surplus production from different branches and market it at an all-India level. This coupled with a healthy upward trend in the export of Lijjat Papad positions Lijjat as the strongest brand in the Papad industry. The other big brands in the Papad market are Bikaner, and Saktibhog, but none seem to be able to make any dent in Lijjat s share of the industry as their core business is not Papad. Lijjat markets its products through a wide network of dealers and distributors all across the country, and has never chosen to sell or push its products directly through the vast network of its offices and sister-members even during the initial years. Rather, over the years, Lijjat has developed cordial and mutually beneficial relationships with its dealers. Sisters claim they believe in doing the business wisely and on sound business ethics. There are 24 dealers for Ranchi branch in cities like Ranchi, Jamshedpur, Dhanbad, Bokaro, Patna, Gaya. During the month of November 2002, around 40,000 packs of 250 gram pack of papad were sold and the total income crossed Rs 0.65 million. According to the accountant at Lijjat s Ranchi branch, which wishes to remain unnamed (as that would shift the attention from sister- members to employees and thus violate Lijjat s principles and traditions), from 2003 Lijjat is aiming at a sales target of a million rupees every month.
  8. 8. 8 Thanks to sound advertising, Lijjat has already become a household name as a symbol of women s strength and resurgence, and its recipe combining udad, moong, pepper and hing has conquered the papad-eater s palate. The exports alone account for Rs 10 crore. They are not directly involved in exporting, but recognized professional merchant exporters (who also export other food products) place an export order. Only on receiving the full advance through a cheque do they begin production. Because all exports are done from Mumbai, the supply also comes from here. Export production is of the same quality as daily production. In fact, they send some of the daily production for export. Again with exporters, the responsibility ends with delivery. They are, both, expected and encouraged to check the goods on collection. After that, where and how they export is their call. At present, 30 per cent to 35 per cent of the production of Lijjat Papad is being exported, mainly to countries like the United States, the United Kingdom, the Middle East, Singapore, Hong Kong and Holland.
  9. 9. 9 THE MANEGEMENT : - 1) Smt. Jyoti J. Naik President (April 15, 2005) 2) Smt. Kamal D. Dhandore - Vice-President 3) Smt. Sunanda R. Belnekar - Secretary 4) Smt. Gangavati H. Naik - Secretary 5) Smt. Priyanka G. Redkar - Treasurer 6) Smt. Kshama M. Sutar Treasurer
  10. 10. 10 The Distribution Chart: -
  11. 11. 11 1. RESEARCH DESIGN 1.1 INTRODUCTION OF STUDY: The Project is based on the distribution channels activities of the Papad Industry. The title of the project is "A Study of Effectiveness of Distribution channel of Lijjat Papad In Pune Market . The Project Design is prepared to achieve the defined objectives. Any survey should be of a proper research method. It is basic framework, which provides the guideline for rest of the Research Process. It mainly specifies the objectives of project, method of collecting the data, research approach, sampling plan, and time period etc. The reason for selecting this topic is study and experience an important role of Distribution channel in the success of the organization. Papad is the perishable product and regularly used in families, in hotel, in restaurant etc. and it have requited the strong distribution channel. Distribution channels are an operating system with an identifiable and distinctive pattern of behavior. Distribution channels is playa very important role in achieving the marketing objective of a concern handling and preserving the distribution channels which is valuable and challenging task, Hence selection of such type of distribution network for study is an interesting task. The project gives the overview of Papad industry. The main objective of the project is to find out effectiveness of Distribution channels of Lijjat Papad in Pune market and also find out the satisfactory level of the marketing intermediaries like Distributors, Wholesalers, and Retailers etc. In Manufacturing, Service providing, Marketing, Automobile industry, Pharmaceutical or any other industry, Distribution channel plays a very important role to serve the product to the end customers, for whom the organization is taking efforts. Every organization must require strong Distribution Network. Only through Physical Distribution organization is able to provide the products up to the customers. In the F. M. C. G. (Fast Moving Consumer Goods) industry strong distribution network is most important, because of unavailability strong distribution network, many famous products go out of the market.
  12. 12. 12 Papad industry is an important industry and scope is increasing day by day. Therefore looking at the potential opportunity and scope of growth, the researcher decided to peruse Summer Project in a Papad manufacturing company. It helps to researcher to get a deep insight in the working culture of the industry. This experience increases knowledge about the equivalent industries like Ice- cream industry and will be great help in future career prospects of researcher. The Recommendations, Suggestions and conclusions given in the supplementary project report are based on detailed analysis of the information and data gathered from the distributors, wholesalers, retailers and customers using graphs, percentage and various statistical methods etc. If the organization considers the suggestions and follows them in the practical work it will definitely helpful to the organization. The project has certain limitations and the views expressed are solely of the author and it is not necessary that the views are the company s views and company is not responsible for any miss confession. Whole study has been taken for the practical knowledge of working activities and methods used in the organization and to check out the real utility of theoretical knowledge of the management books.
  13. 13. 13 1.2 OBJECTIVES OF STUDY: A.) PRIMARY OBJECTIVES: a) To study the effectiveness of the distribution channels. b) To find out the satisfaction of intermediaries of distribution channels. B.) SECONDARY OBJECTIVES: a) To find out the strength and weakness of distribution channels. b) To study the various problems faced by the intermediaries. c) To Study the methods of channels distribution.
  14. 14. 14 1.3 SCOPE OF STUDY: The survey has been conducted in the city areas of Pune and visited the nearby small sub- urban areas such as Pimpri, Chinchwad, Katraj, Marketyard, Shivajinagar, Deccan, Kothrud, Natawadi, Kasabapeth, and Narayanpeth etc. During the survey, researcher met to distributors, wholesalers, retailers, and customers for collecting the information. This project has the objective to study the effectiveness of the distribution channel network, it cover the study of distribution network, strength and weakness of distribution channels, method for distribution channels and focuses on the problem areas arising in the distribution channels of the Papad.
  15. 15. 15 1.4 IMPORTANCE OF STUDY: Project is important for the organization, because it reflects the picture of effectiveness of Distribution channel and concentrates on the satisfaction of Distribution intermediaries and strengths and weaknesses of channel. Distribution channel play very vital role in the Papad industry. To provide fresh and good quality Papad up to the last customer in required quantity with in required time is a challengeable task for the organization. Project work and findings are important for the organization because of following: It reflects the picture of effectiveness of distribution channel network; It emphasizes on the cost of channel distribution from point of manufacturing up to the point of real consumption; It explain the satisfaction level of the intermediaries; It concentrates on the problems of distributors, wholesalers, retailers and customers; It also explains the strength and weakness of the distribution channels; It helps the organization to manage the distribution channel members and for designing motivational schemes to increase the moral of the sells workforce. If the organization considers the findings and practical activities carried out accordingly then it will definitely help the organization to strengthen the distribution channel activity and to increase the effectiveness of the distribution channels.
  16. 16. 16 1.5 DATA DETAILS: This information should be collected in such manner that becomes easy to organize data and preparing the result, so that result or analysis could be arrived as an act. The process of research is the most important part as this lays the foundation for the step to be taken for improvement or mentioned purpose as this end reflects the results. In this part of the research surveyor makes plan to gather the information & the research instrument through which information will be collected. i.e. Questionnaire. SOURCES OF DATA: 1. Primary Data. 2. Secondary Data. 1.) PRIMARY DATA: Every research is depending upon the primary data. In this project, the data has been collected through Questionnaire from the Distributors, Wholesalers, Retailers and Customers of the Lijjat Papad and visits to the people has been done on the basis of Random Sampling. 2.) SECONDARY DATA: Researcher started his investigation by examining secondary data to see whether his problem could partly or wholly be solved without collecting costly primary data. Secondary Data provides starting points for research and offers the advantage of low cost & ready availability, on the other hand the data needed by the researcher might not exist or existing data might be incomplete or unreliable. Secondary Data was collected from the following sources: a. Internal Sources b. Sales Statements
  17. 17. 17 c. Brochure of company d. Internet e. Magazines etc. 1.7 SAMPLE SIZE: Sample size means total number of Distributors, Wholesaler, Retailers, Customer, and Hotel owner visited by researcher and filled up the questionnaire. This project has the total sample size of 129 from the Pune Market. The sample size consists of the following format. No Sample name Sample size 1. Distributors 4 2. Wholesaler s 30 3. Retailers 35 4. Customers: a) Common customers 50 b) Hotel owners 10 Total 129
  18. 18. 18 1.8 LIMITATIONS OF STUDY: 1) As the methodology of data collection was mainly Questionnaire and interview of samples which were selected by researcher. Some people (sample) may not have revealed the true information and some times because of the bias, the finding may not be fully correct. 2) The number of Distributor, Wholesaler, Retailers and Customer interacted were limited so the actual potential might differ from the reported findings in the project. 3) The information has been presented after collecting data form Pune market only. Hence findings and suggestions are not match or applied in geographically different market. 4) Co-operation by the Company's officials was limited because of company norms, hence total required information had not made available properly.
  19. 19. 19 2. ANALYSIS AND INTERPRETATION OF DATA: - 2.1. INTRODUCTION: - Data analysis and interpretation plays an important role in turning quantity of paper into defensible, actionable sets of conclusions and reports. It is actually a set of method and technique that can be used to obtain information and insights from data. It can lead the researcher to get information and insights that would not be available. It can help to avoid erroneous judgments and conclusion. It can provide a background to help interpret and understand analysis conducted by others. Knowledge of power of data analysis techniques can constructively influence research objectives and research design. Data analysis can be a powerful aid to gain useful knowledge from the data collected. Data analysis has the potential to ruin a well-designed study. Inappropriate or misused data analysis can suggest judgments and conclusions that are unclear and incomplete.
  20. 20. 20 2.2. ANALYSIS AND INTERPRETATION OF DATA (FOR DISTRIBUTOR):- I) REASON BEHIND SELECTION OF LIJJAT PAPAD FOR DISTRIBUTION FROM DISTRIBUTOR IN PUNE MARKET. Sr. no. Reason for selecting Lijjat Papad as distribution. Percentage 1 Famous Brand Name 50 2 Cheaper cost 3 3 Low Deposit 10 4 High Demand In Market 7 5 Effective selling. 30 Total 100 Reason behind selection of Lijjat papad for distribution. Low Deposit 10% Cheaper cost 3% 50% Effective selling. 30% High Demand In Market 7% Famous Brand Name The above Table and Graph clears that, the reason of selection of Lijjat Papad for distribution in Pune market from distributor. The distributor gives more value to the factors famous brand name & effective selling.
  21. 21. 21 II) SATISFACTORY LEVEL OF DISTRIBUTOR ABOUT COMMISSION RATE. Sr. No. Satisfactory level No. of respondent Percentage 1 Satisfied 3 75 2 Unsatisfied 1 25 Total 100 The above table and graph show that 75% Distributor are satisfied about commission rate which is given by the organization & 25% Distributor are unsatisfied about commission rate. Percentage of satisfaction of distributor about commission rate. 75% 25% Satisfied Unsatisfied
  22. 22. 22 III) INFORMATION ABOUT THE DELIVERY OF PAPAD TO DISTRIBUTOR IN REQUIRED QUANTITY. Sr. No. Respondent opinion No. of respondent Percentage 1 Yes 3 75 2 No 1 25 Total 100 The table & graph show that 75% distributor get Papad in required quantity while 25% of them says they don t get Papad because of shortage. Percentage of getting Papad in required quantity. 75% 25% Yes No
  23. 23. 23 IV) INFORMATION ABOUT THE DELIVERY OF PAPAD TO DISTRIBUTOR IN REQUIRED TIME. Sr. No. Respondent opinion No. of respondent Percentage 1 Yes 3 75 2 No 1 25 Total 100 The table & graph show that 75% distributor get Papad in required time while 25% of them says they don t get Papad because of transportation problem or shortage. Percentage of getting Papad in required time. 75% 25% Yes No
  24. 24. 24 2.3. ANALYSIS AND INTERPRETATION OF DATA (FOR WHOLESALER):- I) WHOLESALER S OPINION ABOUT GETTING PAPAD IN REQUIRED QUANTITY AND AT REQUIRED TIME FROM DISTRIBUTOR OR FROM COMPANY. Sr. No. Wholesaler s opinion No. of respondent Percentage 1 Yes 19 63.33 2 No 11 36.67 Total 30 100 The above table and graph clearly shows 63.33% wholesalers says that they got Papad in required quantity and at time while 36.67% wholesaler says that they are not getting Papad in required quantity & at proper time because of shortage & by problem of transportation. Percentage of getting Papad from company and distributor. 63.33 36.67 Yes No
  25. 25. 25 II) INFORMATION ABOUT THE CO-OPERATION GETTING FROM DISRIBUTOR. Sr. No. Wholesaler s opinion No. of respondent Percentage 1 Yes 24 80 2 No 06 20 Total 30 100 The above table & graph clearly shows 80% wholesalers say that they got co-operation from distributor while 20% of them says that they don t get co-operation from distributor. Percentage of getting co-operation from distributor. 80% 20% Yes No
  26. 26. 26 III) THE INFORMATION ABOUT THE PRODUCT REPLACEMENT FROM DISTRIBUTOR TO WHOLESALER. Sr. No. Wholesaler s opinion No. of respondent Percentage 1 Yes 16 53.33 2 No 14 46.67 Total 30 100 Percentage of replacement of product from distributor. 53.33 46.67 Yes No Graph & table clearly shows 53.33% wholesalers say that distributor replace the Papad if it is inconsumable while 46.67% of says that they don t get replacement on receiving inconsumable Papad.
  27. 27. 27 IV) SATISFACTORY LEVEL OF WHOLESALERS ABOUT COMMISSION RATE. Sr. No. Satisfactory level No. of respondent Percentage 1 Satisfied 12 40 2 Unsatisfied 18 60 Total 100 Percentage of wholesaler satisfaction abou commission rate. 40 60 Satisfied Unsatisfied The above table & graph show that 60% wholesalers are not satisfied about commission rate while 40% says they are satisfied.
  28. 28. 28 V) EXPECTATION ABOUT INCREASE IN COMMISSION RATE. Sr. No. No. of wholesalers Expected increase in commission rate. Percentage 1 7 0 to 1 38.88 2 5 1 to 2 27.77 3 4 2 to 3 22.22 4 2 3 to 4 11.11 Total 100 Expectation about commission rate 38.88 27.77 22.22 11.11 0 5 10 15 20 25 30 35 40 45 0 to 1 1 to 2 2 to 3 3 to 4 Percentage Above graph show that 38.88% of wholesalers expect 0 to 1% increase in commission rate. While 11.11% of wholesalers expect to increase commission rate up to 3 to 4%.
  29. 29. 29 2.4. ANALYSIS AND INTERPRETATION OF DATA (FOR RETAILER):- I) RETEILER S OPINION ABOUT GETTING PAPAD IN REQUIRED QUANTITY AND AT REQUIRED TIME FROM WHOLESALER S. Sr. No. Retailer s opinion No. of respondent Percentage 1 Yes 28 80 2 No 7 20 Total 100 Percentage of getting papad in required quantity & in time. 80% 20% Yes No The above table & graph clearly shows 80% retailers says that they got Papad in required quantity & at time while 20% retailers says that they are not got Papad in required quantity & at proper time because of shortage & by problem of transportation.
  30. 30. 30 II) INFORMATION ABOUT THE GETTING PAPAD IN SERVICE PERIOD. Sr. No. Period No. of respondent Percentage 1 After 7 days 20 57.15 2 After 15 days 10 28.57 3 Within a month 5 14.28 Total 100 Getting Papad in service period 57.15 28.57 14.28 0 10 20 30 40 50 60 70 After 7 days After 15 days Within a month Percentage Above graph show, 57.15% retailers say that they visited wholesalers shop after 7 days, 28.57% says that they visited after 15 days & 14.28% says they visited once in a month.
  31. 31. 31 III) PERCENTAGE OF RETAILER WHO FORCE TO CONSUMER TO PURCHASE LIJJAT PAPAD. Sr. No. Retailer s opinion No. of respondent Percentage 1 Yes 10 28.57 2 No 25 71.43 Total 100 Percentage of retailer who force to consumer. 29% 71% Yes No Above graph show that 71.43% of Retailers don t force customer to buy the Lijjat Papad while 28.53% forces to buy.
  32. 32. 32 IV) SATISFACTION OF RETAILER S ON SALE OF LIJJAT PAPAD. Sr. No. Retailer s opinion No. of respondent Percentage 1 Yes 30 85.71 2 No 5 14.29 Total 100 Satisfaction of retailer about sale of Lijjat Papad. 86% 14% Yes No Above graph shows that 85.71% of retailers are satisfied with sale of Lijjat Papad while 14.29% are not satisfied.
  33. 33. 33 V) RESPONSE TO LIJJAT PAPAD COMPARED TO OTHER PAPAD S FROM CUSTOMER ACCORDING TO RETAILERS. Sr. No. Level of response No. of respondent Percentage 1 High 25 71.42 2 Medium 8 22.87 3 Low 2 5.71 Total 100 Comparison of Lijjat Papad with other Papads. 71.42 22.87 5.71 0 10 20 30 40 50 60 70 80 High Medium Low Percentage Above graph show that 71.42% of retailers says the sale of Lijjat Papad is high as compared with other. 22.07% says sale of Lijjat Papad is medium & only 5.71% retailers say sale is low.
  34. 34. 34 2.5) ANALYSIS AND INTERPRETATION OF DATA (FOR CUSTOMER):- I) CUSTOMER S OPINION ABOUT GETTING PAPAD IN REQUIRED QUANTITY AND AT REQUIRED TIME FROM RETAILER S. Sr. No. Customer s opinion No. of respondent Percentage 1 Yes 53 88.33 2 No 7 11.67 Total 100 Percentage of customer who are getting Papad in required quantity & time. 88% 12% Yes No The graph show that 88.33% of customer says that they got Papad in required quantity & at proper time from wholesalers & retailers while only 11.67% say that they don t get Papad.
  35. 35. 35 II) INFORMATION ABOUT FORCE OF RETAILER TO CUSTOMER FOR PURCHASING OTHER PAPAD RATHER THAN LIJJAT. Sr. No. Customer s opinion No. of respondent Percentage 1 Yes 15 25 2 No 45 75 Total 100 Percentage of customer being forced by retailer to buy another Papad. 75% 25% No Yes The graph shows that 75% customers are forced by retailer to buy another Papad while 25% are not forced to buy.
  36. 36. 36 III) BECAUSE OF FOLLOWING FACTOR CUSTOMER PURCHASE LIJJAT PAPAD Sr. No. Customer s opinion No. of respondent Percentage 1 Test 22 36.66 2 Quality 18 30 3 Brand 12 20 4 Price 8 13.33 Total 100 Customers purchase Lijjat Papad beceuse- 36.66 30 20 13.33 0 5 10 15 20 25 30 35 40 test quality brand price percentage 36.66% of customer says they purchase Lijjat Papad because Papad s test is best. 30% of customer says they purchase Lijjat Papad because Papad s quality is best. 20% of customer says they purchase Lijjat Papad because of brand of Lijjat. Only13.33% of customer says that they purchase because price of Lijjat is affordable for them.
  37. 37. 37 IV) INFORMATION ABOUT EFFECT OF M.G.L.P S ON CUSTOMER PURCHASING. Sr. No. Retailer s opinion No. of respondent Percentage 1 Yes 50 83.34 2 No 10 16.16 Total 100 Percentage of customers affected by MGLP's Product. 84% 16% Yes No Above graph shows that 83.84% customer says that MGLP s products affect while 16.16% are not agree with that.
  38. 38. 38 V) INFORMATION OF SATISFACTION OF CUSTOMERS ABOUT PRICE OF PAPAD. Sr. No. Retailer s opinion No. of respondent Percentage 1 Yes 35 58.34 2 No 25 41.66 Total 100 Percentage of satisfaction to customers about price. 58% 42% Yes No Above graph shows that 58.34% of customers are satisfied with the price of Papad while 41.66% are not satisfied with price.
  39. 39. 39 3.FINDINGS, CONCUSIONS & SUGGESTIONS 3.1 INTRODUCTION: After collecting the data from the market, researcher has converted it into the meaningful information by applying analyzing techniques and tools on the collected data. The information prepared and dragged from the collected data. Findings are the current market situations, which he collected from the outside market of the organization. Suggestions are the ideas of the researcher, which he would like to present overcome from the problems, come in front with the help of the research. Here the researcher has an independence to give his suggestions after the detail study on the prescribed topic. Because of the detail study the basic problem has been discussed by the researcher and on the basis of the study and findings he gives the suggestions to the company. The suggestions may include alternative strategic options, new ideas, action plans, difference perceptions, customer base differentiation, change in target market etc.
  40. 40. 40 3.2 FINDINGS: After going through the findings from all the Questionnaires designed for the respondents (Distributor, Wholesaler, Retailer, and Customer). Lijjat Papad positioned as leading in manufacturing of Quality Papad all over India. In last 35 years of span no one Papad manufacturing company beat the Lijjat in case of Quality and Test of the Papad. While analyzing the data and keeping in mind the discussion with the various respondents from Pune market, one can say that competitors in the market are like Bikaner, Pravin, Haldiram, Rambandhu, Shalimar Desai, and few local brands such as Hanuman, Arati, Shidhi, Viki, Osval, Sansar, Anand, Prashant, Luxmi, Sona, Jai, Shubham etc. These companies are the competitors of Lijjat Papad and they try to follow the path of Lijjat Papad but they can t maintain the quality and test of their Papad as like Lijjat. Quality and test are the basic element because of them Lijjat name is always present on the customer tongue. Though they are not providing qualitative and testy Papad, but due to them the customers have alternative/ substitute for the Lijjat Papad. As concern to Pune market more 13 Papad Brand are available in the market. The Local competitors like Hanuman, Viki, Osval, Shalimar etc launching the Papad at lower cost and providing the seasonable schemes to the Retailer, Wholesaler, and Customers. The distributor of Lijjat Papad can t give attention on the lower income area and not provide delivery activity to retailer, which are situated in the lower income area, but they have purchasing power. Wholesaler s, Retailers of Lijjat Papad is satisfied by the distribution network and availability of Papad. It is good news for Lijjat Papad from response to the questionnaires by respondents some problem areas come in front like; The local competitors like hanuman, Viki, Shalimar, Osval etc launching the Papad at lower cost and also providing the seasonable schemes to the Wholesaler, retailer and customer.
  41. 41. 41 Local brand also give the credit to the Wholesaler and retailer. According to the wholesaler and retailer the commission rate for competitors product is high and so that they forced to customer for purchasing this brand. But actually they cant understand one thing which is, they sale half quantity of competitors Papad as compare to Lijjat Papad and because of large sale, they are getting more commission from Lijjat Papad than competitors. It is necessary, aware to intermediaries about how the Lijjat Papad selling is given more benefit than other. The Lijjat Papad is one of the products of the "SHRI MAHILA GRIHA UDYOG" and KHADI AND GRAM UDYOG COMMISION OF GOVERNMENT OF INDIA this thought positively affect the buyers behaviors recognizes it The distributor select the Lijjat Papad for distribution because of famous brand name and product have high demand in the market. 75 % Distributors are satisfied about the commission rate. No one Distributor uses the own sales promotion activity. 63.33 % Wholesalers are satisfied about the delivery process. 80% Wholesalers are satisfied about the co-operation, which is getting from the company and distributor. No one Wholesalers use the own sales promotional activity. 46.67 % Wholesalers unsatisfied about replacement of product. 85.71% Retailers are satisfied about the sale of Lijjat Papad in the market. Response to Lijjat Papad as compared to other Papad is high and it is 71.42% Some retailers are not getting all type of Papad in required quantity. Customer purchase Lijjat Papad because of the Test and Quality Also some respondents say that, advertisements of Lijjat Papad are very less on the media television & radio.
  42. 42. 42 3.3 CONCLUSIONS: The whole objective of the study was to conduct a through survey of the Pune Market, to find out the Effectiveness of the Distribution Channel of Lijjat Papad. The study was crucial because of the facts, which were collected from the market could provide the crucial data to the organization regarding distribution channel of Lijjat Papad. It was also important because the study even concentrated on the cost of distribution that had been taken to reduce the cost of distribution, which is the major part of the total cost of the product. This study shall help the organization to develop new methods of distribution and also help to find further fine-tuning to overcome from the loopholes in the distribution channels. To satisfy the Distributors, Wholesaler s, Retailers of Lijjat Papad available in Pune has to keep proper relation with them and must have to take necessary steps to overcome from the small problems mentioned in analysis. Papad market of Pune is growing at the rate of more than 30% annually, and the customers of Pune eat Papad throughout the year in all four seasons. Because of the good test and quality the families who make Papad in home also divert towards the Lijjat Papad. Thus it provides a lot of opportunity for the future growth. It was observed during the entire study, that the Lijjat Papad enjoys an excellent reputation for its quality and test of the Papad. All the flavors launched by the company are admired and appreciated by the maximum population of Pune. This Organization is established for development of women and the owner of that organizations are women. Because of this factor, Lijjat Papad have achieved space in the mind of customer. KHADI AND GRAM UYDOG COMMISION OF GOVERNMENT OF INDIA recognizes Lijjat Papad, this fact is also showing the good status of Lijjat Papad in corporate world. Lijjat Papad is the one of the product of" "SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD " this thought positively influenced and impressed buyer s behavior. The company already has a huge marketing setup on efficient distribution network in Pune market. The larger reach of the company can take care of the regular production of Papad. This results in impressive product availability at all retailers shops. 88.33% Customers are satisfied on
  43. 43. 43 availability of Lijjat Papad. In Pune the Papad market already has multiple players that have been making a lot of noise thereby increasing the market scope, this has resulted in the market the market growing at a very healthy rate. According to the study, distribution to lower retailers shop and inner side retailer s shop of the city has the problem of late delivery. Many retailers and wholesaler have the problem of insufficient display and advertisement aid provided by the company. Throughout the study surveyor sincerely tried to deal and concentrated on above aspects. Strategies to overcome from above aspects will definitely help the organization to strengthen the distribution network of Papad in Pune market.
  44. 44. 44 3.4 SUGGESTIONS: Distribution channel of Lijjat at Papad is more successful in the Pune Market. Following are some suggestions, which shall help the company to overcome from the existing problems and strengthen the distribution network to 100% effectiveness. Rates of Papad should be reduced up to certain extent, Decrease the lead-time of distribution to Wholesaler and Retailer, Company should take precautions about maintaining regular good quality and taste of the Papad, Company should maintain proper communication with distributors, Wholesaler, and retailers. Improving the communication system will require less cost and also fetch higher satisfaction of Distributor, Wholesaler and Retailers, Company has to develop advertisement on media, which not only help to increase awareness but also helps to increase the sales of Lijjat Papad and also provide Banner, Posters etc to the intermediaries, Manage proper availability of all type of Papad, Give effective service in rainy season. Provide satisfactory advertisement aid to Wholesaler and retailers on their shop's, Launch Distributor, Wholesaler, Retailers oriented schemes, which promote them to sale the company's brand. At the time of festival and important occasion company should give gift or discount on the Papad pack. Company should make the frequently survey in the market for preparing effective distribution channel. Develop good relations and communication with Distributor, Wholesaler, and Retailers by such ways. Giving Gifts on occasions, Periodical visits of officers to the Wholesaler and retailer shops.
  45. 45. 45 In addition to above suggestions following points of "Value Addition" are also important to concentrate: i. Establish network with distributors. ii. Understand distributor's needs. iii. Monitor inflow and outflow of stocks. iv. Relinquish stock so as to lower their inventories. v. Ensure distributors profitability. vi. Get distributions to service retailers. vii. Monitor distributor's performances. viii. Service selected retailers directly if requires. ix. Ensure increase in customer's value.
  46. 46. 46 Questionnaires for Distributors: - Name: Age: Address: 1) Why did you select Lijjat Papad brand for distribution? a) Brand Name b) Cheaper Cost c) High Demand d) Others 2) Is the company able to supply Lijjat Papad to you daily in time? Yes No 3) Is the company able to supply Lijjat Papad to you daily in required quantity? Yes No 4) Does the company provide required support to you for increasing the sales? Yes No
  47. 47. 47 If yes then in which form the company gives support a) Advertisement b) Higher discount c) Credit facility d) Any Other support 5) Are you satisfied with commission rate, which is given by company? Yes No 6) Are you satisfy with the delivery process? Yes No 7) Which channel mode you prefer for getting the papad delivery from Lijjat? 1) You pick up the stock from the company 2) You get the stock at your warehouse 3) You get the stock at warehouse s shops 4) You get the stock at the retailers counter 8) Are you using your own warehouse for storing purpose? Yes No
  48. 48. 48 9) What type of distribution set up you have? 1) Through Wholesalers 2) Through retailers 3) Partly through wholesalers 4) Direct to consumer 10) Do you have face any problem in company transportation system? Yes No If yes please describe 11) Did you ask for specific area of distribution or you have been working company? Yes No Company suggest 12) Have you ever face any conflict among you and other distributors? Yes No
  49. 49. 49 If yes please explain reason 13) Which problem are you facing today? Please explain. Suggestions: -
  50. 50. 50 Questionnaire for Wholesalers: - Name: Age: Address: 1) Are you able to supply the Papad to retailers in required quantity & in time? Yes No If no please explains reasons 2) Do you get good co-operation from distributor? Yes No 3) What types / brand of Lijjat Papad are sold by you? 1) Udad with Pepper 2) Udad with Garlic-Chillies 3) Udad with Red Chillies 4) Moong (50% Udad & 50% Moong) 5) Udad special 6) Panjabi Masala special
  51. 51. 51 4) Are you satisfied with delivery process? Yes No 5) Are you satisfied with commission rate, which is given by distributor? Yes No If no please describe your hope- 6) Do you sell Lijjat Papad to retailers at company price or you set your own price? Yes No 7) Your opinion regarding promotional efforts by Lijjat Papad? Yes No If yes - 1. How many salesmen are there? 2. Do you use Advertisement, Banner and Posters for increasing the sale? Yes No
  52. 52. 52 8) Do you get the replacement of Lijjat Papad? Yes No 9) Does company person visit your place? Yes No 10) Suggestions -
  53. 53. 53 Questionnaires for Retailers: - Name: Age: Address: 1) Whole sales provide Lijjat Papad in required quantity and in required time? Yes No 2) At what frequency you get Lijjat Papad from wholesaler? 1. After 7 days. 2. After 15 days. 3. With in a month. 3) Do you get all types of Lijjat Papad from wholesaler? Yes No If no, please specify 4) Do you force consumer for purchasing the Lijjat Papad? Yes No
  54. 54. 54 5) Are you satisfied with the sale of the Lijjat Papad? Yes No 6) Do you satisfied in respect of 1) Rate of commission. 2) Back up services. 3) Any other, please specify. 7) Are you selling any other similar product? Yes No If yes, which out of below - 1) Bikaner 2) Samadhan 3) Saral 4) Haldiaram 5) Other If yes, is due to 1) Price 2) Package
  55. 55. 55 3) Delivery schedule 4) Other 8) How the consumers give response to Lijjat Papad as compare with the other Papad? 1) High 2) Medium 3) Low 9) Does wholesaler provide the credit facilities are discount to you, if you purchase Lijjat Papad in large quantity? Yes No 10) Suggestion-
  56. 56. 56 Questionnaires for Consumers: - Name: Age: Address: 1) Are you regular customer of Lijjat Papad? Yes No 2) Which type of Lijjat Papad do you buy? 1) Udad with Pepper 2) Udad with Garlic-Chillies 3) Udad with Red Chillies 4) Moong (50% Udad & 50% Moong) 5) Udad special 6) Panjabi Masala special 3) Why do you purchase the Lijjat Papad? 1. Test 2. Brand
  57. 57. 57 3. Quality 4. Price 4) Is the Lijjat Papad available in your neighborhood shop? Yes No 5) Does the retailer force you to purchase other Papad? Yes No 6) Do you get Lijjat Papad in M.R.P.? Yes No 7) Are you satisfied about the price? Yes No 8) Are you aware with Lijjat Papad is one of the product of the Shri. M.G.L.P. s. Does this aspect affect your purchasing decision of Papad? Yes No
  58. 58. 58 9) Do you get replacement of Lijjat Papad due to any reason? Yes No Please specify reason- 10) Suggestion-
  59. 59. 59 5 BIBLIOGRAPHY 1. Philip Kotler, Marketing Management, 12th Edition. 2. Rajan Saxsena Marketing Management, 2nd Edition. 3. C.R.Kothari, Research Methodology, 2nd Edition. 4.
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