Comparative Analysis of Distribution System

of

Different Ice-cream Companies

Session October 2008 - January 2010

Undertaken By

Supervised By

Prof. Nasir Riaz

Faculty of Management Sciences Punjab College of Business Administration

31- Main Gulberg Lahore

RESEARCH THESIS

Umer Ijaz L1F08MBAM1169 Ahmed Raza L1F08MBAM1166 Mustansar Hafeez L1F08MBAM1174

Muhammed Ali Khan L1F08MBAM1187

DEDICATION

All praises belong to almighty Allah who is the supreme authority knows the ultimate

relations underlying all sorts of phenomenon going on in this universe and whose

blessings and exaltation flourished our thoughts and ambitions to have the cherished

fruit of our modest efforts in the form of doing this thesis. We also offer our humblest

thanks to HOLY PROPHET HAZRAT MUHAMMED (PBUH) who is the forever torch

of guidance and knowledge for humanity as a whole.

We dedicate our report to our respected and most valuable teacher Prof. Nasir Riaz

who taught us with great affection and dedication and gave us the opportunity to

understand how to do a research project. We feel proud to present this report to the

scholar of the new modern era. He gave us prestigious knowledge about the

different aspects of research, due to which we are able to write this report.

In the last, we would also like to thank our near and dear ones and many other

bosom friends of ours, who suffered uncomplainingly and plucked our courage

during our long working hours. Thus with great love and appreciation, we dedicate

this report to all the above-mentioned people and to all the readers of this report.

ABSTRACT

This research thesis is covering different issues and research problems with regard

to current distribution system of different ice-cream companies. The main objective

of this study lies in understanding the organization, understanding the marketing

channels of the company and to correct its distribution activities as well. We have

also identified the satisfactions level of retailers for the current delivery system of

different ice-cream companies as well as also studied different activities for each ice-

cream company, which clearly suggest what are the strength's of the company and

where the company is lacking and what improvement it need to do in order to

achieve high satisfaction level among the retailer's who are key in the distribution

channel of the company.

During the entire course of the project, different retailers and distributors were

surveyed for analysis regarding distribution effectiveness. In the first part of the

project, a survey of selected outlets was conducted by taking interview of outlet

owners or managers. We have collected important data using pre-designed

questionnaire. By applying different statistical tools we have found some useful

information, which will definitely help the company to improve the effectiveness of

the distribution channel.

It was an excellent experience while working on the project. We have learnt about

the environment and culture of the organization, its distribution structure; which will

help us in our future endeavors in life.

This report consists of five chapters. The first chapter deals with ―Introduction of

project, Essentials of Project study‖. The second chapter deals with Literature

Review on the topic of distribution. The third chapter deals with Research

Methodology, which includes data collection and analysis techniques, and sample

size for the research project. The fourth chapter deals with Findings, Analysis and

Interpretation of data collected from various outlets. The fifth chapter deals with

Conclusion of project & with Recommendations and Annexure having Questionnaire,

and Bibliography etc.

TABLE OF CONTENTS

Page No. Chapter One “Introduction”

Distribution Distribution Channel Discrepancies in distribution channel Complicated success factors for distribution Distribution channel functions and flows Functions of a distribution channel Number of distribution channel levels Types of intermediaries Direct and indirect marketing in distribution Distribution intensity Distribution channel strategy Management of channel systems Distribution system of-ice cream companies Statement of the problem Significance of the study Objectives of the research project

3 3 5 6 6 7 8 10 11 13 14 15 18 21 21 21

Chapter Two “Literature Review” Literature review Theoretical framework

24 35

Chapter Three “Research Methods & Data Collection Techniques‖

Research Methodology

40

Chapter Four “Data Analysis and Presentation”

43

Chapter Five “Conclusions & Recommendations” Conclusions Recommendations

75 76

“Annexure” 78 Questionnaire

“Bibliography and References”

1 Chapter

Introduction

1. Introduction

1.1. Distribution

The Meaning of the Word "Distribution" having studied under the head of

consumption the human wants that lead to economic activity, and the satisfactions

that result from consumption; having studied in the second place the production of

goods and services for the satisfaction of human wants; and having in the third place

studied the subject of transfers of goods and services, and especially of their

exchange among producers or between producers and consumers.

1.2. Distribution Channel

Many producers do not sell products or services directly to consumers and instead

use marketing intermediaries to execute an assortment of necessary functions to get

the product to the final user. These intermediaries, such as middlemen (wholesalers,

retailers, agents, and brokers), distributors, or financial intermediaries, typically enter

into longer-term commitments with the producer and make up what is known as the

marketing channel, or the channel of distribution.

Manufacturers use raw materials to produce finished products, which in turn may be

sent directly to the retailer, or, less often, to the consumer. However, as a general

rule, finished goods flow from the manufacturer to one or more wholesalers before

they reach the retailer and, finally, the consumer. Each party in the distribution

channel usually acquires legal possession of goods during their physical transfer, but

this is not always the case. For instance, in consignment selling, the producer retains

full legal ownership even though the goods may be in the hands of the wholesaler or

retailer that is, until the merchandise reaches the final user or consumer.

Channels of distribution tend to be more direct that is, shorter and simpler in the less

industrialized nations. There are notable exceptions, however. For instance, the

Ghana Cocoa Marketing Board collects cacao beans in Ghana and licenses trading

firms to process the commodity. Similar marketing processes are used in other West

African nations. Because of the vast number of small-scale producers, these agents

operate through middlemen who, in turn, enlist sub-buyers to find runners to

transport the products from remote areas. Japan’s marketing organization was, until

the late 20th century, characterized by long and complex channels of distribution and

a variety of wholesalers. It was possible for a product to pass through a minimum of

five separate wholesalers before it reached a retailer.

Companies have a wide range of distribution channels available to them, and

structuring the right channel may be one of the company’s most critical marketing

decisions. Businesses may sell products directly to the final customer, as Land’s

End, Inc. does with its mail-order goods and as is the case with most industrial

capital goods. Or they may use one or more intermediaries to move their goods to

the final user. The design and structure of consumer marketing channels and

industrial marketing channels can be quite similar or vary widely.

The channel design is based on the level of service desired by the target consumer.

There are five primary service components that facilitate the marketer’s

understanding of what, where, why, when, and how target customers buy certain

products. The service variables are quantity or lot size (the number of units a

customer purchases on any given purchase occasion), waiting time (the amount of

time customers are willing to wait for receipt of goods), proximity or spatial

convenience (accessibility of the product), product variety (the breadth of assortment

of the product offering), and service backup (add-on services such as delivery or

installation provided by the channel). It is essential for the designer of the marketing

channel typically the manufacturer to recognize the level of each service point that

the target customer desires. A single manufacturer may service several target

customer groups through separate channels, and therefore each set of service

outputs for these groups could vary. One group of target customers may want

elevated levels of service (that is, fast delivery, high product availability, large

product assortment, and installation). Their demand for such increased service

translates into higher costs for the channel and higher prices for customers.

However, the prosperity of discount and warehouse stores demonstrates that

customers are willing to accept lower service outputs if this leads to lower prices.

1.3. Discrepancies in Distribution Channel

Distribution channels should take care of the following 'discrepancies.

Spatial

Temporal Discrepancy

Breaking bulk

Assortment

Spatial

This channel system helps reduce the distance between the producer and the

consumer of his products. Consumers are spotted and have to be reached

cost effectively.

Example: Companies produce products in one location even for global

needs. MICO makes fuel injection equipment, spark plugs etc in different

plants but its dealer will sell the entire products.

Temporal Discrepancy

The channel system helps in speeding up in meeting the requirement of the

consumers. Time when the product is made and when it is consumed it is

different.

Example: Maruti plant in Gorgon - cars and spares are available when the

consumer wants.

Breaking Bulk

The channel system reduces large quantities into consumer acceptable lot

sizes. Production has to be in large quantities to benefit from economies of

scale. Consumption is necessarily in small lot sizes.

Example: India is ultimate example in breaking bulk you can buy one

cigarette, one Annacian.

Need for Assortment

The channel system helps aggregate a range of products for the benefit of the

consumer that could be made by one company or several of them. For the

same product, it could be a variety of brands and package sizes.

1.4. Complicated Success Factors for Distribution

The distribution strategy also needs the support and encouragement of top

management to succeed. Some of the CSFs could be: Clear, transparent and

unambiguous policy and procedure should require of serious commitment of the

channel partners.

Fairness in dealings.

Clearly defined customer service policy.

High level of integrity.

Equitable distribution at times of shortage.

Timely compensation channel partners.

1.5. Distribution Channel functions and flows

In order to deliver the optimal level of service outputs to their target consumers,

manufacturers are willing to allocate some of their tasks, or marketing flows, to

intermediaries. As any marketing channel moves goods from producers to

consumers, the marketing intermediaries perform, or participate in, a number of

marketing flows, or activities. The typical marketing flows, listed in the usual

sequence in which they arise, are collection and distribution of marketing research

information (information), development and dissemination of persuasive

communications (promotion), agreement on terms for transfer of ownership or

possession (negotiation), intentions to buy (ordering), acquisition and allocation of

funds (financing), assumption of risks (risk taking), storage and movement of product

(physical possession), buyers paying sellers (payment), and transfer of ownership

(title).

Each of these flows must be performed by a marketing intermediary for any channel

to deliver the goods to the final consumer. Thus, each producer must decide who will

perform which of these functions in order to deliver the service output levels that the

target consumers desire. Producers delegate these flows for a variety of reasons.

First, they may lack the financial resources to carry out the intermediary activities

themselves. Second, many producers can earn a superior return on their capital by

investing profits back into their core business rather than into the distribution of their

products. Finally, intermediaries, or middlemen, offer superior efficiency in making

goods and services widely available and accessible to final users. For instance, in

overseas markets it may be difficult for an exporter to establish contact with end

users, and various kinds of agents must therefore be employed. Because an

intermediary typically focuses on only a small handful of specialized tasks within the

marketing channel, each intermediary, through specialization, experience, or scale of

operation, can offer a producer greater distribution benefits.

1.6. Functions of a Distribution Channel

The main function of a distribution channel is to provide a link between production

and consumption. Organizations that form any particular distribution channel perform

many key functions:

Information Gathering and distributing market research and

intelligence, important for marketing planning.

Promotion Developing and spreading communications about

offers.

Contact Finding and communicating with prospective buyers.

Matching Adjusting the offer to fit a buyer's needs, including

grading, assembling and packaging.

Negotiation Reaching agreement on price and other terms of the

offer.

Physical Distribution Transporting and storing goods.

Financing Acquiring and using funds to cover the costs of the

distribution channel.

Risk taking Assuming some commercial risks by operating the

channel (e.g. holding stock).

All of the above functions need to be undertaken in any market. The question is who

performs them and how many levels there need to be in the distribution channel in

order to make it cost effective.

1.7. Numbers of Distribution Channel Levels

Each layer of marketing intermediaries that performs some work in bringing the

product to its final buyer is a "channel level". The figure below shows some

examples of channel levels for consumer marketing channels:

In the figure above, Channel 1 is called a "direct-marketing" channel, since it

has no intermediary levels. In this case the manufacturer sells directly to

customers. An example of a direct marketing channel would be a factory outlet

store that sells directly through her own retail stores, for example, Bata. This is

the simplest and the shortest channel. It is fast and economical. Small producers

and producers of perishable commodities also sell directly to the local

consumers. Big firms adopt direct selling in order to cut distribution cost and

because they have sufficient facilities to sell directly to the consumers. The

producer or the entrepreneur himself performs all the marketing activities.

The remaining channels are "indirect-marketing channels".

Channel 2 contains one intermediary. In consumer markets, this is typically a

retailer. In this channel, the producer sells to big retailers like departmental

stores and chain stores who in turn sell to customer. This channel is very popular

in the distribution of consumer durables such as refrigerators, TV sets, washing

machines, typewriters, etc. This channel of distribution is very popular these days

because of emergence of departmental stores, super markets and other big retail

stores. The retailers purchase in large quantities from the producer and perform

certain marketing activities in order to sell the product to the ultimate consumers.

The consumer electrical goods market in the UK is typical of this arrangement

whereby producers such as Sony, Panasonic, Canon etc. sell their goods directly

to large retailers such as Comet, Dixons and Currys which then sell the goods to

the final consumers.

Channel 3 contains two intermediary levels - a wholesaler and a retailer. A

wholesaler typically buys and stores large quantities of several producers’ goods

and then breaks into the bulk deliveries to supply retailers with smaller quantities.

For small retailers with limited order quantities, the use of wholesalers makes

economic sense. This arrangement tends to work best where the retail channel is

fragmented - i.e. not dominated by a small number of large, powerful retailers

who have an incentive to cut out the wholesaler. A good example of this channel

is most suitable for the products with widely scattered market. It is used in the

distribution of consumer products like groceries, drugs, cosmetics, etc.

1.8. Types of Intermediaries

There is a variety of intermediaries that may get involved before a product gets from

the original producer to the final user. These are described briefly below:

Retailers

Retailers operate outlets that trade directly with household customers.

Retailers can be classified in several ways:

o Type of goods being sold ( e.g. clothes, grocery, furniture).

o Type of service (e.g. self-service, counter-service).

o Size (e.g. corner shop; superstore).

o Ownership (e.g. privately-owned independent; public-quoted retail group).

o Location (e.g. rural, city-centre, out-of-town).

o Brand (e.g. nationwide retail brands; local one-shop name).

Wholesalers

Wholesalers stock a range of products from several producers. The role of the

wholesaler is to sell onto retailers. Wholesalers usually specialize in particular

products.

Distributors and dealers

Distributors or dealers have a similar role to wholesalers – that of taking

products from producers and selling them on. However, they often sell onto

the end customer rather than a retailer. They also usually have a much

narrower product range. Distributors and dealers are often involved in

providing after-sales service.

Franchises

Franchises are independent businesses that operate a branded product

(usually a service) in exchange for a license fee and a share of sales.

Agents

Agents sell the products and services of producers in return for a commission

(a percentage of the sales revenues).

1.9. Direct and Indirect Marketing in Distribution

Direct Marketing

A key decision a business has to make about distribution is whether to sell

―direct‖.

This method of distribution is usually called “direct marketing”.

Direct marketing means selling products by dealing directly with consumers

rather than through intermediaries.

Traditional methods include mail order, direct-mail selling, cold calling, telephone

selling, and door-to-door calling. More recently telemarketing, direct radio selling,

magazine and TV advertising, and on-line computer shopping have been

developed.

The main advantages of selling direct are that there is no need to share profit

margins and the producer has complete control over the sales process. Products

are not sold alongside those of competitors either.

There may also be specific market factors that encourage direct selling:

o There may be a need for an expert sales force, to demonstrate products,

provide detailed pre-sale information and after-sales service.

o Retailers, distributors, dealers and other intermediaries may be unwilling to

sell the product.

o Existing distribution channels may be owned by, or linked to, competing

producers (making it hard to obtain distribution by any other means than

direct).

However, there are significant costs associated with selling direct which may be

higher than the costs associated with using an intermediary to generate the same

level of sales.

There are several potential advantages of using an intermediary:

o More efficient distribution logistics.

o Overall costs (even taking into account the intermediaries’ margin or

commission) may be lower.

o Consumers may expect choice (i.e. the products and brands of many

producers) at the point of sale.

o Producers may not have sufficient resources or expertise to sell direct.

Indirect Marketing

It is the system the marketer reaches the intended final user with the help of

others. These resellers generally take ownership of the product, though in some

cases they may sell products on a consignment basis (i.e., only pay the supplying

company if the product is sold). Under this system intermediaries may be

expected to assume many responsibilities to help sell the product.

Indirect methods include:

o Single-Party Selling System

Under this system the marketer engages another party who then sells and

distributes directly to the final customer. This is most likely to occur when

the product is sold through large store-based retail chains or through

online retailers, in which case it is often referred to as a trade selling

system.

o Multiple-Party Selling System

This indirect distribution system has the product passing through two or

more distributors before reaching the final customer. The most likely

scenario is when a wholesaler purchases from the manufacturer and sells

the product to retailer.

o Stream Line Distribution

To improve the efficiency of process, business organization by simplifying

or eliminating unnecessary steps, using modernizing techniques, or taking

other approaches.

1.10. Distribution Intensity

There are three broad options - intensive, selective and exclusive distribution:

o Intensive distribution

It aims to provide saturation coverage of the market by using all available

outlets. For many products, total sales are directly linked to the number of

outlets used (e.g. cigarettes, beer). Intensive distribution is usually

required where customers have a range of acceptable brands to chose

from. In other words, if one brand is not available, a customer will simply

choose another.

o Selective distribution

It involves a producer using a limited number of outlets in a geographical

area to sell products. An advantage of this approach is that the producer

can choose the most appropriate or best-performing outlets and focus

effort (e.g. training) on them. Selective distribution works best when

consumers are prepared to "shop around" - in other words - they have a

preference for a particular brand or price and will search out the outlets

that supply.

o Exclusive distribution

It is an extreme form of selective distribution in which only one wholesaler,

retailer or distributor is used in a specific geographical area.

1.11. Distribution Channel Strategy

Following are the factors that influence the choice of distribution channel by a

business:

o Market factors

An important market factor is "buyer behavior"; how do buyers want to

purchase the product? Do they prefer to buy from retailers, locally, via mail

order or perhaps over the Internet? Another important factor is buyer

needs for product information, installation and servicing. Which channels

are best served to provide the customer with the information they need

before buying? Does the product need specific technical assistance either

to install or service a product? Intermediaries are often best placed to

provide servicing rather than the original producer - for example in the

case of motor cars.

The willingness of channel intermediaries to market product is also a

factor. Retailers in particular invest heavily in properties, shop fitting etc.

They may decide not to support a particular product if it requires too much

investment (e.g. training, display equipment, warehousing).

Another important factor is intermediary cost. Intermediaries typically

charge a "mark-up" or "commission" for participating in the channel.

This might be deemed unacceptably high for the ultimate producer

business.

o Producer factors

A key question is whether the producer have the resources to perform the

functions of the channel? For example a producer may not have the

resources to recruit, train and equip a sales team. If so, the only option

may be to use agents and/or other distributors.

Producers may also feel that they do not possess the customer-based

skills to distribute their products. Many channel intermediaries focus

heavily on the customer interface as a way of creating competitive

advantage and cementing the relationship with their supplying producers.

Another factor is the extent to which producers want to maintain control

over how, to whom and at what price a product is sold. If a manufacturer

sells via a retailer, they effective lose control over the final consumer price,

since the retailer sets the price and any relevant discounts or promotional

offers. Similarly, there is no guarantee for a producer that their product/(s)

are actually been stocked by the retailer. Direct distribution gives a

producer much more control over these issues.

o Product factors

Large complex products are often supplied direct to customers (e.g.

complex medical equipment sold to hospitals). By contrast perishable

products (such as frozen food, meat, bread) require relatively short

distribution channels - ideally suited to using intermediaries such as

retailers.

1.12. Management of Channel Systems

Although middlemen can offer greater distribution economy to producers, gaining

cooperation from these middlemen can be problematic. Middlemen must

continuously be motivated and stimulated to perform at the highest level. In order to

gain such a high level of performance, manufacturers need some sort of leverage.

Researchers have distinguished five bases of power: coercive (threats if the

middlemen do not comply), reward (extra benefits for compliance), legitimate (power

by position—rank or contract), expert (special knowledge), and referent

(manufacturer is highly respected by the middlemen).

As new institutions emerge or products enter different life-cycle phases, distribution

channels change and evolve. With these types of changes, no matter how well the

channel is designed and managed, conflict is inevitable. Often this conflict develops

because the interests of the independent businesses do not coincide. For example,

franchisers, because they receive a percentage of sales, typically want their

franchisees to maximize sales, while the franchisees want to maximize their profits,

not sales.

The conflict that arises may be vertical, horizontal, or multichannel in nature.

When General Motors Corporation comes into conflict with its dealers, this is a

vertical channel conflict. Horizontal channel conflict arises when a franchisee in

a neighboring town feels a fellow franchisee has infringed on its territory. Finally,

multichannel conflict occurs when a manufacturer has established two or more

channels that compete against each other in selling to the same market. For

example, a major tire manufacturer may begin selling its tires through mass

merchandisers, much to the dismay of its independent tire dealers.

In the modern market, to manage the conflicts among intermediaries, marketers

have developed a new type of distribution channel which is called the vertical

marketing system.

Vertical Marketing System

It is structure in which intermediaries act as a unified system. One channel

member will possess a huge power upon others. Therefore lead to an

improvement in cooperation.

Types of Vertical Marketing System

There are three types of vertical marketing system. The most basic type is

corporate VMS which combines successive stages of production and

distribution under single ownership (Kotler.P, 2001). The next one is called

contractual VMS which consists of independent businesses at different levels

of production and distribution. They are tied together through contracts to

obtain advantages and amelioration in sales. Conflicts are managed through

contractual agreement among channel members. Finally, administer VMS

coordinates successive stages of production and distribution through the size

and power of one of the parties. Leadership is assumed by one or a few

dominant channel members.

Horizontal Marketing Systems

Apart from vertical marketing systems, another channel development is the

horizontal marketing system. The system developed when two or more

companies cooperate, or form a new company by combining assets, which

will provide greater benefits than by acting alone. Usually a horizontal

marketing system is established so that the individual members can combine

resources to make the most out of the marketing situation. This system is also

effective in global distribution channel.

Hybrid Marketing Systems

A hybrid marketing channels is another name for multichannel distribution

system in which one firm establishes two or more separate marketing

channels to serve its customers. This system is greatly improving in recent

years. Companies are creating new hybrid marketing systems that promise to

become the dominant marketing design. These systems offer greater

coverage and reduced costs, but they are also hard to manage.

Companies will find many conveniences and advantages when facing large

and complex markets. However, hybrid channel systems would generate

conflict as more channels are competing for sales and profit.

1.13. Distribution System of Ice-cream Companies

Distribution

One of the competitive advantages of the ice-cream companies is its availability,

which is ensured by extensive distribution. The distribution of ice cream is different

from other products. To keep it in a good form it must be chilled at appropriate

temperature. For this purpose deep freezers are used, which are provided by the

company. However, the running costs are to be paid by the retailers. For this

purpose the ice-cream companies gives a maximum margin of 18% to its

retailers\distributors, which is distributed over entire channel.

Pakistan is divided in three major sections. These are as follows:

1. North (Islamabad, Peshawar and Northern areas).

2. Central (Lahore and Central Punjab).

3. South (Sindh and Baluchistan).

Distribution Channel

Distribution channel consists of all the people and organizations, which are involved,

in the physical distribution of goods. Selection of proper distribution channel is very

important aspect because if the channel is managed efficiently, companies can save

high costs and thus generate profits. The cooperation of channel members is also of

vital importance. Distribution is making the product available but this availability

should ensure that product must be:

At right place

At right time

In right condition

If there is any deficiency in any of these basic elements of distribution, the future of

product would be uncertain. Distribution is such an activity, which could decide the

fate of the product.

Mostly the ice-cream companies such as WALL’S have a Hybrid Distribution System.

It reaches different customers through different systems. WALL’S is using two types

of distribution channels, both are indirect channels. HICO has no proper distribution

system, they distribute directly from their factory. OMORE’ is a new brand in the

market from last one year and they are developing their distribution system.

Currently they have 2 cold stores, one is situated in Lahore and other is in

Islamabad. Yummy has one warehouse / cold store in Multan and one in Islamabad

and they distribute their products in Lahore region directly from their factory.

1. Producer - Distributor - Retailer - Consumer

This is commonly used, in which the ice-cream companies send the products

to the local distributors who supply the products to the retailer in the required

quantity. The retailer then sells it to the customer. The specialty and

effectiveness of this system is excellent. The reason for such an excellent

distribution system is the distribution policy. If a retailer wants to sell an ice

cream, the investment he needs to do is as:

That’s why most retailers are attracted to the WALL’S. Another important thing

which needs to be discussed about the distribution is that during this

distribution channel, the standard temperature of the cold chain is maintained.

Retailer

Security for

the freezers

Investment on

Ice cream products

Board for

advertisement

Total investment required

Others 15000 12-15,000 3000 30,000

WALL’S Nil 12-15,000 Nil 15,000

2. Producer - Stock Pointer - Dealer - Retailer - (Cycles) - Consumer

The second type of system was more a short term distribution system which

has just for the introduction stage to actually made the product reach

everywhere and the system was more of creating awareness than actual

retailing purpose. But the cycle distribution system yielded excellent results in

terms of sales and creating awareness about the products. Now the cycle

contributes a big percentage of shares in the overall sale of the company. So

this has now become a permanent distribution channel of the ice-cream

companies. One of the major reasons of early success and clean sweep given

by WALL’S is its availability, which is ensured through extensive distribution.

There is not even a single city in the country where one cannot find a walls

freezer or hear the sweet music of the trike (tricycles), which acts as a direct

marketing for it. Thus, WALL’S has always tried its best to ensure the

availability of the product as close to the customers as possible and WALL’S

has been very successful in that.

Distribution Strategies

There are two main distribution strategies, which ice-cream companies have very

effectively used.

In first strategy include incentives like free deep freezers, discounts on bulk

purchases.

Advertising campaign that reminds and persuades customers to buy ice

cream supports 2nd strategy, which is facilitated by price offs, which are

frequently offered by the company.

1.14. Statement of the problem

The problem which we will have to resolve in our research work is that, we have to

analyze effective distribution systems of different ice-cream companies. The needs

and wants of the distribution channel members and the problems faced by them.

How many retailers, wholesalers and distributors are currently providing ice-cream

products to the customers. What so ever the requirement might be, so here we are

concerned to check out these problems or some other problems which will be

incurred during the research work.

1.15. Significance of the study

By studying all these problems through different fact finding techniques and

accomplishing the objectives of the research, we will reach to certain results which

help us to make certain conclusions that whether the distribution system adopted by

different ice-cream companies is effective or not and if any of the company has no

effective distribution system then what criteria and ways they should adopt to have

an effective distribution system in their company and how they can increase their

market share with the help of proper and effective distribution system.

1.16. Objectives of the Research Project

To understand the distribution system of different ice-cream companies.

To find the market share of each company.

To determine the key areas of strength and weakness for each company’s

distribution system.

To find the lacunas in the current distribution system.

To compare the sales and distribution effectiveness of each company.

To find the comfort level of the dealers with the current distribution system.

To identify the issues faced by the retailers, wholesalers and distributors.

To get the feedback from retailers, wholesalers and distributor.

To know whether wholesaler is able to satisfy the retailers needs in their

specific area or not.

To identify the area of service in which company needs to improve.

To help the company in designing proper strategies for effective distribution

system.

2 Chapter

Literature Review &

Theoretical Framework

2. Literature Review

We review the literature starting from the basic description about the distribution

channels, and then zooming in to distribution channel conflict, discount structure

dynamics for the distributors, distribution logistics and warehouse distribution, and

finally the effectiveness of distribution channels that how distribution channels can

work more effectively and efficiently in success of any organization.

1. According to Bizzhelp24, (A UK business and finance resource providing

Business Help, for individuals and Traders) wrote an article about “Distribution

Channels” that is published in (2005). This article describes the term of

distribution and the importance of different distribution channels that how they

can be used efficiently and effectively in the businesses. According to this article

distribution is all about getting the products / services to the right people at the

right time with special consideration for profit and effectiveness. The successful

marketing does not end when a business has developed a product / service and

has found its appropriate target audience with a view to selling it at the right price.

The main issue that needs to be faced is that how they are going to distribute and

sell those products / services to its ultimate consumers. When a product / service

are 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 channels. These distribution

channels are influenced largely by the type and size of the business. The most

important and vital part of administrating and selling the products is deciding how

they will be distributed; this affects the costs, price and profit of the products; as

well as affecting how accessible they are for customers.

In this article they have described three common methods of distribution which

are as follows:

Keeping stock in your premises or a warehouse, and distributing directly to

customers.

Distributing to a number of local warehouses, which then distribute to the

customers.

Distributing to regional warehouses, which distribute to local centers, and

then deliver to customers.

They said that if the customers are local, it would make sense to distribute from a

single place. The success of each system will depend on the amount of orders,

as well as the locations of customers. If all the customers are local, it would make

sense to distribute from a single place; where as if customers are scattered, a

regional system may be more effective.

2. K. Mackillop, (2009) in the article “Defining the Distribution Channels for

Business” describes that it is important to define the best distribution channels

for the product, and for the customers. According to this article the distribution

channel is the way the product gets to the customer. He argues that traditionally,

businesses relied on a single distribution channel but now the most successful

businesses are those who use multiple routes to reach a broader customer base.

He also gave some examples of a single and a multiple distribution channels to

reach to customers. According to him, for specialized, service-only ventures, the

employees will personally deliver to the client, either on-site or at their place of

business. Examples of these types of businesses are cleaning services, auto

detailing, personal coaching, consulting, personal training, and training.

Restaurants and other food service ventures also fall into this category. Selling

retail products, on the other hand, allows multiple options for distribution online

sales, brick-and-mortar storefront, direct sales through sales reps, festivals or

shows, etc. The author also put emphasis on the distribution channels that are

adopted by the competitors. He says that the organization should consider the

distribution routes used by their closest competitors to analyze that whether they

are using the most effective channels or not. He further said that the target and

potential customers of an organization also plays an important role in the

distribution channels selected by the organization. If organizations are selling

directly to the end user, they probably have more options than if they are

targeting distributors to market their product. If product is new to the market,

consider where the target market currently purchases similar products. If it is

easier for the customers to buy from you rather than your competitors, they will

come. The organizations should consider all three factors product, customers,

and organization itself before deciding the best routes for the business. If

possible, consider developing multiple distribution channels because the more

ways the product can get to the customers, the bigger is the potential market.

3. Richard Earls, (2009) in his article “Understanding Distribution Channels”

describes distribution channel as a chain of tactics and people through which the

organization gain access to clients. According to him if an organization has a

website that is a distribution channel, as are the trade shows to sell the services;

face to face meeting with a client is another distribution channel. Each distribution

channel might employ a variety of tactics, specially crafted for that particular

channel. He says that it is important to recognize distribution channels and the

role they play in generating business. The next step is to focus on the tactics one

use to drive business through each of these channels. Develop a set of finely

honed tactics for each marketing collateral, promotions, allies and events.

Calendar your efforts to keep them organized and sharp. Look at each

distribution channel you have and fine tune all of the tactics that surround them.

The organization should focus on each as a separate opportunity.

4. Scott White, (2006) in his article “All About Fulfillment Marketing Firms”

talked about the big shift from traditional marketing systems to the increasing use

of Internet marketing which makes business very difficult for small to medium-

sized manufacturers who want to cut costs and handle their own distribution and

promotion. It's understandable for large manufacturers that have opened their

own stores along with major retailers favoring their own brands, are pushing

small players aside. Major players have the distribution systems and sales

information systems to make their marketing campaigns work smoothly and

effectively. That efficacy simply drowns out smaller players trying to get retailer's

attention. They know what's working and what isn't right away and can respond

quickly. According to the author, marketing fulfillment is the process of delivering

marketing materials through marketing distribution channels, along with providing

sales training, and communicating with channel members to ensure the complete

marketing campaign is carried out on time. Without this integration of marketing

and promotional materials, and the coordinated timing of their delivery to retail

and wholesale locations, the retail advertising campaign won't achieve the results

desired. He further said marketing channels today are shorter than they used to

be, but they're more complex. Even with online and electronic payment systems,

marketing materials have to be created and distributed through larger distances

and overcome stronger distribution barriers. He says that effective marketers can

shift resources at just the right time to make the promotions ineffective. If the

organization coming from a weak distribution position, competitors can easily

take advantage of it. So the organization should have a strong distribution

network in order to compete with the competitors more effectively.

5. John Henderson, (2007) in his article “Discount Structure Dynamics” talked

about discount pricing structures for distributors. He says that distributors

discount pricing structures is one of the most misunderstood and underutilized

elements in distributor marketing programs. The direct affect on the company's

and their distributor's profitability makes discount structures the most important

element in the business relationships. According to him, the truth behind this fact

is that most of the existing discount structures were not designed to support

today's marketing strategies and need to be re-evaluated. Many companies

change the structure using a "team" approach, but few have an individual that

owns the responsibility. If companies are avoiding making changes to their

discount structures, fearing that the end result will be perceived as either "a price

increase" (which will reduce unit sales) or a "a price decrease" (which will reduce

profitability). The author further says that a well-designed distributor discount

pricing structure helps in achieving marketing objectives, which are as follows:

Increase market share.

Establish presence in a distribution channel.

Emphasize particular product lines.

Discipline and control your marketing expenditures.

Reduce costs.

Differentiate between distributors.

Communicate values and strategies.

Acknowledge and reward channel excellence.

Acknowledge and reward loyalty.

Well-structured discount programs are designed to compensate the distributor for

performing marketing functions (and the costs associated with performing these

functions) that the manufacturer would otherwise be responsible for:

Carrying inventory

Sales and technical support

Order handling

Extending credit

The author believes that activity-based discounting will be the future basis for all

channel compensation. The roles and responsibility of distributors and the basis

for their compensation change as manufacturers work to take costs out of their

channel systems and improve customer service. Many firms are attracted to

activity-based discounting because it is fair and generally supportive of their

overall marketing strategies. In essence, an activity-based discount structure

"pays" the channel for "what it does," or "you get what you pay for."

6. Phil Morettini, (2006) in his article “Distribution Channel Conflict” talked

about the conflict between distribution channels and what strategies can be used

to resolve that conflict between the distribution channels. He also quoted an

example of the conflict between two different distribution channels in his article.

The author gave some recommendations to resolve the distribution channel

conflict, he said sell through every channel that makes sense. There are many

potential channels for the products: direct, OEM, retailers, independent sales

reps, strategic partner referrals, and more. In extreme cases, all of these potential

channels may be appropriate ways to deliver the company’s products to the

market. If the organization is honest and fair with people, potential channel

conflict shouldn't unnecessarily stop an organization from maximizing revenue by

using multiple methods of delivering the product to the market. There is a range

of customer profiles in the market. Some want to buy everything through their

trusted integrator, who helps give them a third party evaluation of the product's

virtues. Others want to deal directly only with the manufacturer or developer of

the specific product they are purchasing. A third category of buyers likes to buy

as much as possible through their favorite large manufacturer this is a great

reason to OEM your product to the IBMs of the world. In each of these situations,

the channel that is best positioned, via relationship or type of support, should and

usually will get the deal. The last category of buyer, however, is different. This is

the bargain basement buyer, the one who couldn't care less who he buys from,

as long as he gets the lowest price. Bargain basement buyer is a price conscious

buyer that will often bring cross-channel conflict to the forefront. Since they are

seeking the lowest price, they end up shopping the purchase across many

potential sources for the product, creating great price competition among your

channel partners. This is where conflict is often born.

7. Gordon Petten, (2006) in his article “Distribution Logistics and Warehouse

Distribution” said that distribution logistics plays a valuable and important role in

any warehouse distribution system. As every warehouse is unique, and thus has

its own unique distribution logistics. It can be something as simple as the number

of floors or something as complex as the computer system used. But whatever

causes them to be unique, distribution logistics must be taken into account when

designing any service which utilizes warehouse distribution. According to the

author, a retail business is only as good as its channel of distribution. It could be

equally stated that distribution logistics are the current that makes that channel

flow. Many managers make the mistake of creating a "one size fits all" approach

to warehouse distribution. They believe that all warehouses should operate in

essentially the same manner, and the way to achieve this uniformity is through

uniform distribution logistics. Distribution logistics in any warehouse distribution

system should be viewed in much the same way individual workers are viewed. It

is exactly the same way with the distribution logistics in any warehouse

distribution system. What works in one warehouse, may not work in another.

What optimizes the distribution systems in one warehouse may cause problems

in another. However, this is not an excuse to allow retrograde practices to

continue. If a certain warehouse is truly underperforming, something needs to be

done; and uniformity could be the answer. The author said that it is merely to say

that distribution logistics is not a "one size fits all" affair, and should not uniformly

be treated as such. Each warehouse should be studied, its practices examined,

and then decisions can be made. Obviously, distribution logistics in a warehouse

distribution system require some of the most care and attention of anything in the

distribution chain. So think twice before making any decision.

8. S.Shiny Niar, (2009) in her article “Innovation in Logistics Industry”

describes the design of a multi-tiered distribution network. She says that the key

to a successful distribution strategy will be proximity. The tail that wags the

distribution dog is transportation reliability. Transportation reliability or unreliability

will play a key role in determining the number of nodes required for distribution

and the inventory to support it. Even firms with fast-moving goods will be

required to set up decentralized, multi-tiered distribution networks that are:

Rely more heavily on Inventory.

Reside close to the Market.

Use Technology to provide visibility and Collaboration.

Select a Key Partner.

9. Stephen Kavita, (2009) in her article “Effective Distribution Channels that

affect Product Affordability” says that businesses operating in a product

oriented market often vary in their distribution channels to suit their customers'

needs. This is due to frequent changes in the market trends and the economic

implications. Stephen also put more emphasis on different types of distribution

channels that are more effective for the businesses. According to her, businesses

will go for the least expensive distribution channels since the goods going

through these kind of structures will also be affordable, increasing the demand for

such goods. She gives more importance to direct selling and avoid middlemen

because an organization can get immediate feedback from its customers and this

will also ensure healthy customer relation. She further talked about longer

distribution channel that may be used for durable goods as they take a longer

period before they expire. If the market for a product is unpredictable, the

producer may opt to sell through middlemen who will share the risks involved as

opposed to a producer shouldering all the risks. If a distribution channel has

many middlemen, then the final price paid by the consumer for the commodity will

be high. The government should also put checks on the use of certain distribution

channels, especially where middlemen seem to exploit consumers. As much as

middlemen increase the price of a commodity, they do offer the advantage of

storing and delivering goods to consumers thus freeing the distributor from some

of the tasks.

10. Pedro Gondim, (2007) in his article “Marketing in Counseling” wrote about

improving marketing through delivery. He describes the concept of service over

delivery that provides a level of service beyond what you’ve promised your client

in your marketing message. According to him, the intention of service over-

delivery is to build goodwill with your clients. It’s intended that this goodwill will

translate into business benefits for you. Those benefits may be longer client

contracts, increased referral and stronger product endorsement. Generally, the

perceived gain from over-delivering the service would be greater than the cost to

provide the additional benefit to the client. He further said that every investment

requires a systematic approach in order to be successful and over-delivering is

not different. An organization will need to establish goals in order to measure the

outcomes of their efforts, and also to avoid having financial problems due to an ill

planned promotion. One can include the following points in their over-delivery

strategy:

Establish primary objectives.

Find a target market.

Choose your gift.

Create protocols.

11. Bob Segal, (2007) in his article “How to Motivate Sales Channel Partners with

a Formal Planning Process” said that in an ideal world, the key distributors

would develop annual business plans for their product line and work closely with

their distributor account managers to get the plans implemented. In reality, many

manufacturers skip this planning effort altogether. The success of many

manufacturers hinges on the actions of tens or even hundreds of independent,

mostly small, distributors. However, each distributor has different customer

targets, different product mixes, and different sales and technical skills. Many

lack strategic planning skills and marketing departments. A manufacturer can

hope for the best or use distributor plans to gain greater control over its

distribution destiny. According to him, most manufacturers don't have the

capacity to handle hundreds of individual plans. Most of the manufacturers

experience the 80:20 rules, where 80 percent of their revenue comes from 20

percent of their channel partners. At a minimum, suppliers should require plans

from key partners. These plans should have highly customized content. However,

the typical items a manufacturer should expect, or even require, in a distributor

plan might include:

Business background.

Product/services summary.

Customer mix.

Marketing plan.

Training/personnel plan.

Sales plan.

Logistics plan.

Financial plan.

The annual meeting should take place between the account manager and the

owner or senior executive from the distributor. The actual meeting, to review last

year's results and revise the plan for next year, will likely require two to four

hours. In preparation, the account manager should review, in detail, the

distributor's sales history, local market trends/conditions, the manufacturers'

fulfillment of past commitments, new product plans, etc.

12. Thomas Cutler, (2006) in his article “The Role of CRM for Distributors” talked

about the impact of globalization on distribution channels. He stated that

globalization has made competition within manufacturing fierce in recent years.

Not only is cost effective, timely production key to success, but streamlined

procurement processes are also essential. Manufactured goods typically require

collaboration with several partners, so only manufacturers that have highly

efficient business processes will thrive and grow. According to Larry Caret sky,

(CEO of Commerce CRM for Manufacturing and Distribution), ―What is needed is

an intelligent, integrated, customizable application to connect the business

processes that increase visibility for effective decision making, and extend

processes to customers and supply chain channel partners.‖ According to Caret

sky, ―Most software companies entered the CRM market with a handful of basic

products. However, end-user companies found these products didn’t always meet

their unique needs, resulting in a low success rate, which discouraged company

leaders. So, software vendors came out with variations of CRM software

designed to meet a broader range of needs, with varying degrees of success.

CRM software is only successful when it helps a company manage relationships

with its customers.

13. Gopinathan Thachappilly, (2009) in his article “How Business Distribute

Products to consumers” says that selecting a distribution channel is a major

business decision. He says that the distribution method an organization select

can significantly impact on customer satisfaction, as well as marketing costs of

the organization. If products are available in the right assortment and quantities at

the right place and time to the customer, the organization gains a distinct

competitive advantage. On the other hand, if prospective customers cannot find

widely publicized product at a convenient outlet, organization stand to lose large

volumes of sales. Distribution of the product is thus a strategic issue, as well as a

practical one intended to get the product to the final consumer. He further talked

about the distribution logistics where physical goods have to be moved from a

point of origin to points of consumption, issues of storage, handling and

transportation come into the picture. This can prove a complex exercise where

the variety and quantity involved are large. It will involve:

Moving the right assortment of merchandise in right quantities.

Using the right kinds of transport vehicles considering the nature of goods

and speed of delivery.

Routing and scheduling the movement to minimize overall transport costs.

Ensuring that the merchandise is received at the destinations when

needed.

Computer based logistics management solutions can be used to handle the

complexities involved.

14. Biggso, in his article “The Network Marketing Strategy” put emphasis on

distribution through local distributors. According to him, network marketing aims

at helping the manufacturers market their products to the end consumers via

independent local distributors. By engaging local distributors to market the

products of the company, the company is able to generate more income and

save on distribution and advertising cost. As most companies would spend

thousands of dollars to promote their products through TV commercials and

advertising, billboards and other forms of media. Promoting products and brands

could cost the company a lot of money that a good portion of the cost that you

pay for a certain product is actually added in to defray the advertising and

promotion expenses. Since the network marketing strategy will do away the

promotion and advertising cost by engaging local distributors to personally

promote the products to the their friends, relatives and colleagues, the company

will now be able to give the distributors big commissions. In most instances, the

network marketing company will give the local distributors direct commissions of

up to 30% of the sales generated by a local distributor.

15. According to Wharton School of the University of Pennsylvania, who

published an article in (2001), about “Changing Channel Distribution Models

in the internet age”. The author in this article said that the adoption of channel

power has meant a seismic shift in the relationships between consumers,

retailers, distributors, manufacturers and service providers. It presents many

companies with the option of reducing or eliminating the role of intermediaries

and lets those providers transact directly with their customers. According to Eric

K. Clemons, Wharton professor of operations and information management,

says that direct distribution offers a company significant opportunities, but it also

can present "numerous strategic uncertainties. He suggests that before launching

an e-commerce effort and bypassing its traditional distribution channels, a

business should analyze which products are appropriate for electronic

distribution, which consumer activities will be supported by which channel

participants, and which segments or groups of consumers are likely to adopt

electronic distribution.

2.1 Theoretical Framework

A theoretical framework is conceptual model of how the theory makes sense of

relationship among several factors that have been identified important for the

problem. This conceptual framework helps to study various variables and

relationships among them whether they are positive or negative. The variables which

we are going to study in our research work are dependent, independent and

moderating variables. Before going into the practical demonstration of variables

through flow chart, first we have to list and define the purpose of the each variable

that will be used in the research.

List of Factors List of Variables

Effective Distribution Dependent Variable

Distribution Channels (Wholesalers, Retailers) Independent Variable

Availability and Accessibility Independent Variable

Price Independent Variable

Time Independent Variable

Competitors Independent Variable

Customers of the organization Independent Variable

Distribution Logistics Independent Variable

Training, Communication & Discount Pricing Structure Moderating Variables

The dependent variable ―Effective Distribution‖ is the variable of primary interest and

to which the independent variables and moderating variables may cause to

influence. The basic purpose because of which the above variables are taken is to

analyze their influence either positive or negative, on the dependent variable.

If we talk about the distribution channels, it can have a both positive and negative

impact on the effective distribution of the products because distribution channels are

influenced largely by the type and size of the business. If the distribution channels

are according to the nature of the product and needs of the customers than it has a

positive relationship with the dependent variable and if it the distribution network is

not according to the nature of the product than distribution effectiveness decreases

and it has a negative relationship with the dependent variable.

Talking about availability and accessibility of the products, if products are physically

not available or cannot easily accessible then how they are going to be purchased.

The most important and vital part of administrating and selling the products is

deciding how they will be distributed; this affects the costs, price and profit of the

products; as well as affecting how accessible they are for customers.

The price is also an important factor that has an impact on the effective distribution

because if the prices of the products are high, there is no demand in the market for

the particular product so it has a negative relationship with the dependent variable so

the prices of the products should be affordable for customers so that it will create a

positive relationship with the effective distribution and it is only possible when there

is a demand in the market and prices are affordable for the customers.

If we talk about time, it is also a very important independent variable that has a major

impact on the effective distribution because distribution is all about getting the

products / services to the right people at the right time with special consideration for

profit and effectiveness. If products are available in the right assortment and

quantities at the right place and time to the customer, the organization gains a

distinct competitive advantage.

Competitors have a great influence on the effective distribution system of the

organization and the organization should consider the distribution routes used by

their closest competitors to analyze that whether they are using the most effective

channels or not. If an organization will keep her eye on the competitors then they

can have more effective distribution system otherwise both the variables have a

negative relationship with each other.

The target and potential customers of an organization also plays an important role in

the distribution channels selected by the organization. If organizations are selling

directly to the end user, they probably have more options than if they are targeting

distributors to market their product. If product is new to the market, consider where

the target market currently purchases similar products. If it is easier for the

customers to buy from you rather than your competitors, they will come. Distribution

logistics plays an important role in effective distribution because distribution logistics

are the current that makes that channel flow and distribution logistics in any

warehouse distribution system should be viewed in much the same way individual

workers are viewed. It requires more care and attention of anything in the distribution

chain. So in this manner it has a positive relationship with the effective distribution.

Now at the end we talk about the moderating variables that have a strong contingent

effect on the independent variable-dependent variable relationship. These

moderating variables are ―Training, Communication and Discount Pricing

Structures‖. The presence of the third variable (Moderating Variable) modifies the

original relationship between the independent and dependent variables. Sales

training and communicating with channel members ensures that the complete

marketing campaign is carried out on time. Without this integration of marketing and

promotional materials, and the coordinated timing of their delivery to retail and

wholesale locations, the retail advertising campaign won't achieve the results

desired. This training also helps the key distributors in developing annual business

plans for their product line and work closely with their distributor account managers

to get the plans implemented. As each distributor have different customer targets,

different product mixes, and different sales and technical skills, so they have to do

their best to gain greater control over its distribution destiny. So the training and

communication with the channel partners can also enhance the relationship between

independent and dependent variables. Discount Pricing Structure is an also an

important moderating variable that can entirely change the relationships between

dependent and independent variables because if companies are avoiding making

changes to their discount structures, fearing that the end result will be perceived as

either "a price increase" (which will reduce unit sales) or a "a price decrease" (which

will reduce profitability), so it has a negative impact on the effective distribution. For a

positive relationship among variables there should be a well-designed distributor

discount pricing structure which helps in achieving marketing objectives set by the

organizations and that also compensates the distributor for performing marketing

functions (and the costs associated with performing these functions).

The research framework of an effective distribution is therefore depicted as follows:

Research Framework

Customers of the Organization

Distribution Logistics

Training, Communication and Discount

Pricing Structure

Moderating Variables

Distribution Channels

(Retailers and Distributors)

Availability and Accessibility

Price

Time

Effective Distribution

Independent Variables

Dependent Variable Competitors

3 Chapter

Research Methodology

3. Research Methodology

Research Design

In our research project we will use various tools of exploratory research. This

research will be done to gain background information of the problem. An initial

research will be conducted to clarify and define the nature of the problem.

Descriptive research will be done where questionnaires will be given to the

respondents to analyze the distribution effectiveness.

o Define needed information

The needed information is to analyze the distribution system of

different ice cream companies.

The research will be conducted in the sample distribution channels

and warehouses of different ice cream companies.

Following ice cream companies have been taken as a sample from

Punjab region to conduct the research.

Wall’s.

Hico.

Omore’.

Yummy.

Gourmet.

o Specify measurement and scaling procedures

Graphs, tables, diagrams and other data presentation techniques to be

used to measure the results to conclude.

o Construct and pretest questionnaire

The questionnaire should be prepared while reviewing the objectives to be

achieved, discussions with the instructors, making of the questionnaire

according to the research problems and finally approved by the instructor.

Sample

The sample size on which we will conducted our research is approximately

consists of 70 respondents which includes retailers and distributors of the above

mentioned ice cream companies. The sample includes managers, workers and

other employees of those distribution channels.

o Sampling Technique

We will use the technique of random sampling in our research.

o Sampling procedure

Sample size should be categorized and represents the whole population.

Data collection

Data will be collected through primary and secondary resources. The source for

primary data will be distributors and retailers. The source for secondary data will

be the articles published by different magazines, journals newspapers, text books

etc. Direct personal structured and unstructured interviews with samples

respondents will be conducted so the data collected will be first hand and original

in character.

o Tool/instrument of data collection

Comprehensive questionnaires will be used to collect the desired

information. We will design different questionnaires for retailers and

distributors so that we can get first handed and accurate information from

them about the effective distribution system of the company. Pretesting of

questionnaire will be carried out to determine how it will serve the purpose

of obtaining needed data.

Questionnaire Design

The questionnaire consists of predominantly closed ended and

option based question in order to provide some ease to the

respondents. In order to make the questionnaire more effective

following points are covered:

Uniformity in questions.

Reduce subjectivity.

Easier to receive response.

Less time consuming.

The questions tried to cover all aspects required to analyze the

effective distribution system of each company.

Data Analysis Procedure

Data collected through the questionnaires will be analyzed and interpreted. The

statistics analysis will be carried out with the help of computer software Microsoft

Excel 2007 and descriptive statistics .The relevant data which we will get from

various other sources will also add more value in our result interpretation.

4 Chapter

Data Analysis &

Presentation

Data Analysis of Retailers

Q 1):- Which of the following companies you are associated with?

Interpretation:

From our survey, we have observed that 55% of the retailers are associated with

Wall’s, 13% with Yummy,3% with Hico, 22% with Omore’, 5% with Gourmet and

others include only 2%.

Wall's Yummy Hico Omore' Gourmet Others

Series 1 55% 13% 3% 22% 5% 2%

0%

10%

20%

30%

40%

50%

60%

Question 1

Q 2):- From how long you are associated with the company?

Interpretation:

This graph shows the association of retailers with different ice-cream companies.

From our conducted survey we have found that 61% of the retailers of Wall’s are

associated with the company from last 0-5 years and 39% retailers are associated

from last 5-10 years. Similarly, the maximum retailers of the Yummy i.e. 63% are

associated from last 10-15 years which shows the company has a good relation with

its intermediaries.12% are associated from last 0-5 years and 25% retailers are

associated with Yummy from 5-10 years. If we talk about Hico, 50% of the retailers

are associated from last 5 years and 50% are from last 5-10 years. In Omore’, all the

retailers are associated from last 1 year because this company is new in the market.

33% of the Gourmet retailers are associated from last 5 years and 67% are from last

10 years with the company. Others include the company who manufacture ice-cream

locally so that’s why they are associated from last 5 years.

Wall's Yummy Hico Omore' Gourmet Others

0-5 years 61% 12% 50% 100% 33% 100%

5-10 years 39% 25% 50% 0% 67% 0%

10-15 years 0% 63% 0% 0% 0% 0%

Above 15 years 0% 0% 0% 0% 0% 0%

0%

20%

40%

60%

80%

100%

120%

Question 2

Q 3):- Are you satisfied with quality of the products offered by the company?

Interpretation:

In this question we wanted to analyze the satisfaction level of the retailers about the

quality of the products offered by the companies. From the results we concluded that

all the retailers of Wall’s are satisfied with the quality of the products. 87% of the

retailers of Yummy are satisfied while 13% are not. From Hico retialers we got mix

responses because 50% are satisfied and 50% are not satified with the quality of the

products. The retailers of Omore’, Gourmet and others are 100% satisfied with the

quality of the products.

Wall's Yummy Hico Omore' Gourmet Others

Yes 100% 87% 50% 100% 100% 100%

No 0% 13% 50% 0% 0% 0%

0%

20%

40%

60%

80%

100%

120%

Question 3

Q 4):- Are you satisfied with the delivery / distribution services provided by the

company?

Interpretation:

This question is asked from the retailers about the current delivery and distribution

system of the companies they are associated with. The above graph shows the

satisfaction level of the retailers about different companies. The results show that

73% of retailers of Wall’s are highly satisfied with the distribution system. Similarly

Hico, Gourmet and others are also highly satisfied with the current delivery system.

75% retailers of Yummy and 92% retailers of Omore’ are satisfied with current

delivery system of the companies.

Wall's Yummy Hico Omore' Gourmet Others

Highly Satisfied 73% 13% 100% 8% 100% 100%

Satisfied 24% 75% 0% 92% 0% 0%

Neutral 0% 12% 0% 0% 0% 0%

Dissatisfied 0% 0% 0% 0% 0% 0%

Highly Dissatisfied 3% 0% 0% 0% 0% 0%

0%

20%

40%

60%

80%

100%

120%

Question 4

Q 5):- Are you satisfied with the performance of the sales person of the company?

Interpretation:

The above graph shows the satisfaction level of the retailers about the performance

of the sales persons of the company whether the sales persons perform their duties

honestly or not and whether they are cooperative with the retailers or not. So in the

results the retailers who are associated with different companies’ shows their

satisfaction level for the sales persons of their respective companies.

Wall's Yummy Hico Omore' Gourmet Others

Highly Sarisfied 21% 0% 50% 8% 100% 100%

Satisfied 76% 87% 50% 92% 0% 0%

Neutral 0% 13% 0% 0% 0% 0%

Dissatisfied 0% 0% 0% 0% 0% 0%

Highly Dissatisfied 3% 0% 0% 0% 0% 0%

0%

20%

40%

60%

80%

100%

120%

Question 5

Q 6):- What is your opinion regarding the sales person’s frequency of visits in a

month?

Interpretation:

This question is asked from the retailers who are associated with different

companies about sales person’s frequency of visits in a month to the retailer. From

the results we concluded that the sales persons of every company visit the retailer

regularly. We also found that the 13% retailers of Yummy respond that the visits of

the sales persons from Yummy are inadequate.

Wall's Yummy Hico Omore' Gourmet Others

Regular 94% 88% 0% 8% 100% 100%

Adequate 3% 12% 100% 92% 0% 0%

Inadequate 3% 13% 0% 0% 0% 0%

0%

20%

40%

60%

80%

100%

120%

Question 6

Q 7):- Evaluate the delivery system of company on following parameters.

Interpretation:

The graphs show whether the retailers receive the delivery in time or every time they

have to face some problems regarding the delivery of the products. From the results

we have concluded that almost all the companies deliver the products in time to the

retailer’s end. But we have also seen that sometimes there is a delay from the

companies in delivering the products in time but this thing happens very rarely.

Wall's Yummy Hico Omore' Gourmet Others

In time delivery 85% 75% 50% 84% 100% 100%

Delay 9% 25% 50% 16% 0% 0%

Very Delay 6% 0% 0% 0% 0% 0%

0%

20%

40%

60%

80%

100%

120%

Question 7 "Timeliness of Order"

Interpretation:

The graph shows whether the retailers receive the orders completely or not which

they have placed to the distributors or directly to the companies. From the results we

have concluded that almost all the companies deliver the products completely to the

retailers. But we have also seen that sometimes the order is partially completed due

some unexpected reasons but it happens rarely.

Wall's Yummy Hico Omore' Gourmet Others

Fully Completed 85% 50% 50% 69% 100% 100%

Partially Completed 12% 50% 50% 31% 0% 0%

Not Completed 3% 0% 0% 0% 0% 0%

0%

20%

40%

60%

80%

100%

120%

Question 7 "Completeness of Order"

Q 8):- Are you satisfied with the current commission system given by the company?

Interpretation:

The above graph shows the satisfaction level of the retailers about the commission

system given by the company. From our results we concluded that the retailers have

mix opinions about the commissions given by the company. Some retailers are

highly satisfied while we have also found some highly dissatisfied retailers who are

not happy with the current commission system.

Wall's Yummy Hico Omore' Gourmet Others

Highly Sarisfied 15% 63% 0% 0% 100% 100%

Satisfied 70% 37% 100% 77% 0% 0%

Neutral 3% 0% 0% 15% 0% 0%

Dissatisfied 6% 0% 0% 8% 0% 0%

Highly Dissatisfied 6% 0% 0% 0% 0% 0%

0%

20%

40%

60%

80%

100%

120%

Question 8

Q 9):- How often do you find that expired products are supplied to you?

Interpretation:

This question is asked from the retailers to know whether they receive expired or

defective products from their respective companies. From the results we observed

that mostly the companies deliver new stock to the retailers but sometimes the

retailers also receive some defective and expired products from those companies.

Wall's Yummy Hico Omore' Gourmet Others

Mostly 0% 0% 0% 0% 0% 0%

Rarely 0% 0% 0% 0% 0% 0%

Sometimes 15% 0% 50% 16% 33% 0%

Never 85% 100% 50% 84% 67% 100%

0%

20%

40%

60%

80%

100%

120%

Question 9

Q 10):- What is the proportion of defective / expired products in total quantity supplied

to you?

Interpretation:

This graph shows if the retailers receive expired, out-dated and defective products

then in what quantity they receive such products. We found that the percentage of

such type of products is not more than 2-4 % of the total products delivered to the

retailers.

Wall's Yummy Hico Omore' Gourmet Others

0-2% 100% 87% 50% 85% 100% 100%

2-4% 0% 13% 50% 15% 0% 0%

4-6% 0% 0% 0% 0% 0% 0%

Above 6% 0% 0% 0% 0% 0% 0%

0%

20%

40%

60%

80%

100%

120%

Question 10

Q 11):- Which are the trade promotion schemes that you like the most?

Interpretation:

This question is asked from the retailers in order to know that what kind of trade

promotional schemes they like the most. From the results we concluded that 75% of

the retailers like cash discounts, 7% like gift articles, 5% bonus packs, 3% coupons

and 8% like tours offered by the companies.

Gift ArticlesCash

DiscountsBonus Packs

Coupons/ Contests

Tours Others

Series 1 7% 75% 5% 3% 8% 2%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Question 11

Q 12):- Evaluate the company on following parameters / activities?

Interpretation:

The above graph shows the evaluation of different activities of Wall’s company. The

activities includes: Order taking, Billing/Documentation, Credit period, Market

Support, Profit margin and claim adjustment. The retailers of Wall’s company

evaluated all the activities according to their satisfaction level with each of the

activity.

Order Taking

Billing/

Documentation

Credit Period

Market Support

Profit Margin

Claim Adjustment

Very Good 25% 63% 0% 0% 63% 25%

Good 50% 25% 0% 50% 12% 36%

Satisfactory 25% 12% 25% 38% 25% 39%

Poor 0% 0% 12% 12% 0% 0%

Very Poor 0% 0% 63% 0% 0% 0%

0%10%20%30%40%50%60%70%

Question 12 "Wall's"

Interpretation:

The above graph shows the evaluation of different activities of Yummy. The activities

includes: Order taking, Billing/Documentation, Credit period, Market Support, Profit

margin and claim adjustment. The retailers of Yummy evaluated all the activities

according to their satisfaction level with each of the activity.

Order Taking

Billing/

Documentation

Credit Period

Market Support

Profit Margin

Claim Adjustment

Very Good 25% 63% 0% 0% 63% 25%

Good 50% 25% 0% 50% 12% 36%

Satisfactory 25% 12% 25% 38% 25% 39%

Poor 0% 0% 12% 12% 0% 0%

Very Poor 0% 0% 63% 0% 0% 0%

0%10%20%30%40%50%60%70%

Question 12 "Yummy"

Interpretation:

The above graph shows the evaluation of different activities of Hico. The activities

includes: Order taking, Billing/Documentation, Credit period, Market Support, Profit

margin and claim adjustment. The retailers of Hico evaluated all the activities

according to their satisfaction level with each of the activity.

Order Taking

Billing/

Documentation

Credit Period

Market Support

Profit Margin

Claim Adjustment

Very Good 50% 0% 0% 0% 50% 50%

Good 0% 100% 0% 50% 0% 0%

Satisfactory 50% 0% 100% 0% 50% 50%

Poor 0% 0% 0% 50% 0% 0%

Very Poor 0% 0% 0% 0% 0% 0%

0%20%40%60%80%

100%120%

Question 12 "Hico"

Interpretation:

The above graph shows the evaluation of different activities of Omore’. The activities

includes: Order taking, Billing/Documentation, Credit period, Market Support, Profit

margin and claim adjustment. The retailers of Omore’ company evaluated all the

activities according to their satisfaction level with each of the activity.

Order Taking

Billing/

Documentation

Credit Period

Market Support

Profit Margin

Claim Adjustment

Very Good 23% 54% 0% 0% 8% 15%

Good 77% 46% 0% 46% 77% 62%

Satisfactory 0% 0% 0% 46% 15% 15%

Poor 0% 0% 31% 8% 0% 8%

Very Poor 0% 0% 69% 0% 0% 0%

0%10%20%30%40%50%60%70%80%90%

Question 12 "Omore"

Interpretation:

The above graph shows the evaluation of different activities of Goumet. The

activities includes: Order taking, Billing/Documentation, Credit period, Market

Support, Profit margin and claim adjustment. The retailers of Gourmet evaluated all

the activities according to their satisfaction level with each of the activity.

Order Taking

Billing/

Documentation

Credit Period

Market Support

Profit Margin

Claim Adjustment

Very Good 33% 0% 0% 100% 67% 100%

Good 67% 100% 100% 0% 33% 0%

Satisfactory 0% 0% 0% 0% 0% 0%

Poor 0% 0% 0% 0% 0% 0%

Very Poor 0% 0% 0% 0% 0% 0%

0%20%40%60%80%

100%120%

Question 12 "Gourmet"

Interpretation:

The above graph shows the evaluation of different activities of those companies who

produce their own ice-cream locally. The activities includes: Order taking,

Billing/Documentation, Credit period, Market Support, Profit margin and claim

adjustment. The retailers of these types of companies evaluated all the activities

according to their satisfaction level with each of the activity.

Order Taking

Billing/

Documentation

Credit Period

Market Support

Profit Margin

Claim Adjustment

Very Good 100% 100% 100% 100% 100% 100%

Good 0% 0% 0% 0% 0% 0%

Satisfactory 0% 0% 0% 0% 0% 0%

Poor 0% 0% 0% 0% 0% 0%

Very Poor 0% 0% 0% 0% 0% 0%

0%20%40%60%80%

100%120%

Question 12 "Others"

Data Analysis of Distributors

Q 1):- Which of the following companies you are associated with?

Interpretation:

From our survey of distributors, we have got responses from different distributors.

Our survey covered 4 distributors of Wall’s, 2 from Yummy, 1 from Hico, 2 from

Omore’ and 1 from Gourmet.

Wall's Yummy Hico Omore' Gourmet Others

Series 1 4 2 1 2 1 0

0

1

2

3

4

5

6

Question 1

Q 2):- From how long you are associated with the company?

Interpretation:

From the results of this question, we concluded that 1 distributor of Wall’s has an

association with the company from last 5 years and 3 distributors has an association

from last 10-15 years. Similarly, both distributors of Yummy has an association from

last 10-15 years. Hico distributor has an association from last 10 years. As Omore’ is

new company so the distributors have an association from last 1 year. The distributor

of Gourmet has an association from last 5-10 years.

Wall's Yummy Hico Omore' Gourmet Others

0-5 years 1 0 0 2 0 0

5-10 years 3 0 1 0 1 0

10-15 years 0 2 0 0 0 0

Above 15 years 0 0 0 0 0 0

0

1

2

3

4

5

6

Question 2

Q 3):- Are you satisfied with quality of the products offered by the company?

Interpretation:

In this question we wanted to analyze the satisfaction level of the distributors about

the quality of the products offered by the companies. From the results we concluded

that all the distributors of Wall’s, Yummy, Hico, Omore’, Goumet are satisfied with

the quality of the products offered by their respective companies.

Wall's Yummy Hico Omore' Gourmet Others

Yes 4 2 1 2 1 0

No 0 0 0 0 0 0

0

1

2

3

4

5

6

Question 3

Q 4):- How many retailers purchase products from your distribution or warehouse?

Interpretation:

This question is asked from the distributors in order to get the accurate information

about the retailers to whom they are supplying and delivering the products. The

result in the graph shows the number of retailers each distributor is currently having

with them.

Wall's Yummy Hico Omore' Gourmet Others

0-1000 0 0 0 0 1 0

1000-1500 1 0 0 2 0 0

1500-2000 1 2 1 0 0 0

2000-3000 2 0 0 0 0 0

Above 3000 0 0 0 0 0 0

0

1

2

3

4

5

6

Question 4

Q 5):- What are the methods and ways opted for the distribution of the products to

your customers?

Ans:- In the questionnaire we asked this question as an open ended question from

the distributors. The distributors of all the companies provide their own

methods and ways distribution which they are currently using to distribute the

products to the retailers. From the results we concluded that the companies

use their efficient field forces or sales persons in order to get orders from the

retailers, and all of them use their own logistics support to distribute the

products to the retailers.

Q 6):- What are the different distribution flaws faced during the process of

distribution?

Ans:- When we asked this question from the distributors in order to know that what

type of flaws that they are facing in the process of distribution. From the

responses we concluded that the flaws which are faced by them include

shortage of human resources which sometimes delay the orders of the

customers, and this also reduces the recovery from the creditors. The other

major flaw they are facing is the replacing of the damaged products. Both of

these flaws are actually faced by distributors of Hico, and Yummy because

they have very less number of human resources available and they have a

less logistics support. On the other hand, Wall’s, Omore’ and Gourmet are

doing very well because they have a well organized and well balanced

distribution system.

Q 7):- How the orders of the products are processed by your distribution or

warehouse at the channel level?

Ans:- The distributors of Walls, Yummy and Omore’ receives an order from the

retailers and they forward their requests to the company and when they

receive the requested order from the company, they deliver it to the retailers.

While in case of Hico and Gourmet, they supply the products directly from the

company or factory so the retailers have to submit their requests and order

directly to the company or factory and then the required products are

delivered to them.

Q 8):- What is the average order-cycle time given to the retailer?

Interpretation:

This graph shows the average order cycle time given to the retailers by the

distributors. From the results we concluded that the distributors of Wall’s, Omore’

and Gourmet complete the orders within 5 days, the distributors of Yummy take

maximum of 10 days to complete the orders and Hico take more than 10 days to

complete the orders of the retailers.

Wall's Yummy Hico Omore' Gourmet Others

Less than 5 Days 4 0 0 2 1 0

5-10 Days 0 2 0 0 0 0

More than 10 Days 0 0 1 0 0 0

0

1

2

3

4

5

6

Question 8

Q 9):- Do you have your own logistics for the distribution of the products?

Interpretation:

From the results we concluded that all of the ice-cream companies have their own

personal logistics support to deliver and supply products to the retailers.

Wall's Yummy Hico Omore' Gourmet Others

Yes 4 2 1 2 1 0

No 0 0 0 0 0 0

0

1

2

3

4

5

6

Question 9

Q 10:- Do you replace the expired and out-dated products?

Interpretation:

The result of this question shows that all the distributors of different companies

replace the out-dated, expired and damaged products.

Wall's Yummy Hico Omore' Gourmet Others

Yes 4 2 1 2 1 0

No 0 0 0 0 0 0

0

1

2

3

4

5

6

Question 10

Q 11:- Approximately how much of your order from your customers are impacted /

affected due to defective / expired products?

Interpretation:

According to the responses of the distributors, the orders of the retailers are only

affected 0-5 % due to the damaged, out-dated and expired products.

Wall's Yummy Hico Omore' Gourmet Others

0-5% 4 2 1 2 1 0

5-10% 0 0 0 0 0 0

10-15% 0 0 0 0 0 0

15-20% 0 0 0 0 0 0

0

1

2

3

4

5

6

Question 11

Q 12:- Do you face any type of complaints from retailers regarding your distribution

system?

Interpretation:

Yes, all the distributors agreed that they always receive complaints from their

retailers. When we asked about the type of complaints, almost all of the distributors

responded that the complaints are about the ―Time consume for the delivery of the

products, unavailability or shortage against the demand in order, product softness

and completeness of orders‖ because sometimes, Hico and Yummy are unable to

complete the orders in the given time period due to less logistics support and less

human resources.

Wall's Yummy Hico Omore' Gourmet Others

Yes 4 2 1 2 1 0

No 0 0 0 0 0 0

0

1

2

3

4

5

6

Question 12

5 Chapter

Conclusions &

Recommendations

5.1. Conclusions

The conclusions drawn from the project study are as follows:

s of each ice-cream

company surveyed in order to make a comparative analysis of the distribution

system.

41% of the retailers and 70% of the distributors have a strong and long term

association i.e. (10-15 Years) with their respective companies. 59% of the

retailers and 30% of the distributors are associated with their companies for

last 5 years.

Approx 89% of the retailers and almost all the distributors are satisfied with

the quality of the products offered by their companies. Only 11% of the

retailers are not satisfied with the quality of the products offered by their

respective companies.

distributors are highly satisfied. Also, approx. 32% of the retailers are just

satisfied by the distribution services. 2% retailers are neutral because they are

neither satisfied nor dissatisfied with the distribution services. Only 1% of the

retailers are highly dissatisfied with the current distribution services provided

to them.

Almost all the distributors have efficient sales force and their visits to retailers

for order taking is also regular and adequate.

Companies are providing timely and accurate deliveries of products to the

retailer's but the sometimes the completeness of orders are not maintained

properly. According to retailers they say that sometimes company sends more

of the same brand or less of the same or sometimes the entire order is not

according to prescribe order quantity. It shows that deliver system is efficient

and effective but the dispatching is the area where company needs to

improve.

There are some definite problems with the commission system and

commission paid to retailers by the company. Majority of retailers are satisfied

by commission system but there are also some retailers who are highly

dissatisfied with the current commission systems of the company.

Proportion of defective, out-dated and expired product is less which shows

effectiveness of product handling, efficiency of delivery mechanism and the

quality and packaging standard's that the companies follow.

Most retailers preferred trade promotion is Cash Discount, followed by Tours

at 2nd, Gift Articles at 3rd, Bonus Pack's at 4th & Coupons at 5th ranking.

Credit period & profit margin allotted to retailers by the company is perceived

to be less and thus they are dissatisfied on this parameter.

Claim settlement system of the companies is average because sometimes

companies even Wall’s take more than two months to settle a claim from the

retailers.

5.2. Recommendations

We can sum the recommendations in brief as follows:

Communications should be improved by fulfilling the demand of product by

company. In the field, sales persons work independently and away from the

office. Good communication requires interaction between those preparing and

those receiving reports.

Company should make plans and impart training to the salesperson to

enhance their performance.

Aggressive marketing by market developer for increasing the sales volume.

Regular visit to distributors and retailers for better co-ordination.

Improve the market share by:

o Providing efficient & effective distribution.

o Catering to busy retailers at least 3 times a week.

Company should adhere to and implement the customers’ suggestions and

complaints about products, service policies, price changes, advertising, etc.

Increase in the number of sales vehicles.

Provide better schemes & services in order to gain market share.

Another Market research is required specifically on Brand v/s Competitions

v/s Commission paid to retailers.

Companies need to make an efficient and faster claim settlement system.

Annexure

QUESTIONNAIRE

(For Retailers)

Name: _______________ Gender: Male Female

Age: __________Years Contact #:________________

Q 1):- Which of the following companies you are associated with?

Walls’ Yummy

Hico Omore’

Gourmet Others ____________

Q 2):- From how long you are associated with the company?

Q 3):- Are you satisfied with quality of the products offered by the company?

Yes No

Walls’

Yummy

Hico

Omore’

Gourmet

Others

0 – 5 Years

5 – 10 Years

10 – 15 Years

Above 15 Years

Walls’

Yummy

Hico

Omore’

Gourmet

Others

Q 4):- Are you satisfied with the delivery / distribution services provided by the

company?

Highly Satisfied

Satisfied Neutral Dissatisfied Highly Dissatisfied

Walls’

Yummy

Hico

Omore’

Gourmet

Others

Q 5):- Are you satisfied with the performance of the sales person of the company?

Highly Satisfied

Satisfied Neutral Dissatisfied Highly Dissatisfied

Walls’

Yummy

Hico

Omore’

Gourmet

Others

Q 6):- What is your opinion regarding the sales person’s frequency of visits in a

month?

Criteria for visits in a month

Regular Adequate Inadequate

Walls’

Yummy

Hico

Omore’

Gourmet

Others

Q 7):- Evaluate the delivery system of company on following parameters.

Timeliness of Order 1= In time, 2= Delay & 3= Very Delay

Completeness of Order 1= Completed, 2= Partially Completed 3= Not

Completed Walls’

Yummy

Hico

Omore’

Gourmet

Others

Q 8):- Are you satisfied with the current commission system given by the company?

Highly Satisfied

Satisfied Neutral Dissatisfied Highly Dissatisfied

Walls’

Yummy

Hico

Omore’

Gourmet

Others

Q 9):- How often do you find that expired products are supplied to you?

Mostly Rarely Sometimes Never

Walls’

Yummy

Hico

Omore’

Gourmet

Others

Q 10):- What is the proportion of defective / expired products in total quantity

supplied to you?

Mostly Rarely Sometimes Never

Walls’

Yummy

Hico

Omore’

Gourmet

Others

Q 11):- Which are the trade promotion schemes that you like the most?

Gift articles Coupons/contest

Cash discounts Tours

Bonus Packs Others __________

Q 12):- Evaluate the company on following parameters / activities?

(1= Very Good, 2= Good, 3= Satisfactory, 4= Poor and 5= Very Poor)

Walls’ Yummy Hico Omore’ Gourmet Others

Order Taking

Billing / documentation

Credit Period

Market Support

Profit Margin

Claims Adjustment

QUESTIONNAIRE

(For Distributors & Warehouses)

Name: _______________ Gender: Male Female

Age: __________Years Contact #:________________

Q 1):- Which of the following companies you are associated with?

Walls’ Yummy

Hico Omore’

Gourmet Others ____________

Q 2):- From how long you are associated with the company?

0 - 5 years 5 -10 years

10-15 years Above 15 years

Q 3):- Are you satisfied with the quality of the products offered by the company?

Yes No

Q 4):- How many retailers purchase products from your distribution or warehouse?

a. Retailers in numbers

Q 5):- What are the methods and ways opted for the distribution of the products to

your customers?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

Q 6):- What are the different distribution flaws faced during the process of

distribution?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

Q 7):- How the orders of the products are processed by your distribution or

warehouse at the channel level?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

Q 8):- What is the average order-cycle time given to the retailer?

Less than 5 Days 5 to 10 Days More than 10 Days

Q 9):- Do you have your own logistics for the distribution of the products?

Yes No

Q 10):- Do you replace the expired and out-dated products?

Yes No

Q 11):- Approximately how much of your order from your customers are impacted /

affected due to defective / expired products?

0 - 5% 5 - 10%

10 – 15% 15 – 20%

Q 12):- Do you face any type of complaints from retailers regarding your distribution

system?

Yes No

If yes, what are the kinds of complaints and how do you manage them in a

given span of time?

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

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http://tutor2u.net/business/marketing/distribution_direct.asp

http://tutor2u.net/business/marketing/distribution_intermediaries.asp

http://tutor2u.net/business/marketing/distribution_introduction.asp

http://www.tutor2u.net/business/presentations/marketing/directmarketing/default.html

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