Project Report On

Analysis of Distribution Channels of Competitors Related to Madhavji ka Chivda

At

Madhavji ka Badhiya Chivda, Nasik

By

Ganesh Vitthal Chaudhari

Under the Guidance of

Chaitanya Gosavi Sir

Submitted To

University of Pune
In partial fulfillment of requirement for the award of the degree Of

Master of Business Administration (MBA)

Through

Matoshri College of Management and Research Centre, Eklahre, Nasik

2011-2012

College Certificate

Company Certificate

STUDENT DECLARATION

I undersigned hereby declare that, the project entitled Analysis of Distribution Channels of Competitors related to Madhavji ka Chivda is executed as per the course requirement of two year full time MBA program of University of Pune. This report has not been submitted by me or any other person to any other University or Institution for a degree or diploma course. This is my own and original work.

Place: Nasik Date: <Sign of the student>

Ganesh V.Chaudhari

ACKNOWLEDGEMENT
I take the occasion to thank Madhavji ka Badhiya Chivda for giving me the opportunity to Work on this project, which has immensely helped in gaining & developing my knowledge & Experience. I would like to thank my institute Matoshri College of Management and Research Centre as well as Director Madam Dr. S. Rastogi to provide me such a wonderful opportunity. I especially thank my project guide Mr. Chaitanya Gosavi Sir for her valuable guidance, cooperation & encouragement throughout the project. I am also Grateful to Mr. Ashirwad More (senior head marketing) for providing their valuable thoughts and inputs throughout the project & kindly accepting the suggestions & recommendations given by me. I will always remain indebted to my family for their constant moral support & advice, which has helped me in every way of life. Lastly I would like to specially thank the subordinates & their superiors for their cooperation and also would like to thank to all the respondents of the survey, members of the faculty & all my other fellow summer trainees for their co-operation & co-ordination in the project alone with me.

CONTENTS
Chapter No. TITLE COLLEGE CERTIFICATE COMPANY CERTIFICATE STUDENTS DECLARATION ACKNOWLEDGEMENT I II III IV V VI VII VIII IX X Topic Introduction Objectives of the Study Industry Profile Company Profile Theoretical Background Research Methodology Data Analysis and Interpretation Findings Conclusions Suggestions / Recommendations ANNEXURE BIBLIOGRAPHY Page No. I II III IV

CHAPTER I

INTRODUCTION TO THE TOPIC

Topic introduction
To reach a target market, the marketer uses three kinds of marketing channels. Communication channels deliver messages to and receive messages from target buyers. They include newspapers, magazines, radio, television, mail, telephone, billboards, posters, fliers, CDs, audiotapes, and the Internet. Beyond these, Communications are conveyed by facial expressions and clothing, the look of retail stores and many other media. The marketer uses distribution channels to display or deliver the physical product or service(s) to the buyer or user. There are physical distribution channels and service distribution channels, which include warehouses, transportation vehicles, and various trade channels such as distributors, wholesalers, and retailers. The marketer also uses selling channels to effect transactions with potential buyers. Selling channels include not only the distributors and retailers but also the banks and insurance companies that facilitate transactions. Marketers clearly face a design problem in choosing the best mix of communication, distribution, and selling channels for their offerings.

OBJECTIVES OF THE PROJECT

Study of Distribution Channel related to Madhavji ka Chivda To Analyze the Competitors Distribution set up Related to Chivda Market

Research Methodology
Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research methods/techniques but also the methodology. Researchers not only need to know how to develop certain indices or tests, how to calculate the mean, the mode, the median or the standard deviation or chi-square, how to apply particular research techniques, but they also need to know which of these methods or techniques, are relevant and which are not, and what would they mean and indicate and why. Researchers also need to understand the assumptions underlying various techniques and they need to know the criteria by which they can decide that certain techniques and procedures will be applicable to certain problems and others will not. All this means that it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem. For example, an architect, who designs a building, has to consciously evaluate the basis of his decisions, i.e., he has to evaluate why and on what basis he selects particular size, number and location of doors, windows and ventilators, uses particular materials and not others and the like. Similarly, in research the scientist has to expose the research decisions to evaluation before they are implemented. He has to specify very clearly and precisely what decisions he selects and why he selects them so that they can be evaluated by others also.

SCOPE OF THE STUDY

Awareness about the problems faced by Retailers regarding to the Distribution of the Madhavji Product The Study and Analysis made through survey in this project is within the boundary of Nashik city This project will help the company for successfully facing the cutthroat competition from the local competitors and increase its sales and market share.

Limitation/Problem faced during study

Very little time given by the Retailer to get the required feedback Respondent may reluctant to tell about their business information The data collected represents the whole population

CHAPTER II

ORGANISATION PROFILE

Establishment
Madhavji ka Badhiya chivda was founded in the year 1925 by three brothers namely, Murlidhar More, Madhavrao More, Raghunath More. In the early days they used to sell the chivda in a wooden basket, which could occupy only 5Kgs. Years passed, and now we are a well-known brand in India currently having three retail outlets in Nashik at Raviwar Karanja, Panchavati Karanja and MG Road, which are most popular areas of Nashik. We have various products under our brand including onion chivda, sadha chivda, makhmali chivda, reshmi chivda, vijay bhel, diet chivda, sugar free chivda, badhiya bhadang chivda (puff rice), masala tikha chivda, makai chivda (cornflakes), kachha poha chivda, mung dal (lentils), mix dal (lentils), masur dal (lentils), chana dal (lentils), tikhi bhel. These product are healthy with low saturated and trans fat and above all with NO cholesterol. All our products are prepared in a hygienic environment.

*"Our motto of business is look for quality not quantity"*

OWNER OF THE COMPANY

DEEPAK MORE NILESH MORE ASHIRWAD MORE

Branches(Outlets)

Address: Raviwar Peth, M G Road, Panchavati Karanja, Nashik, Maharashtra 422001. Nashik, Maharashtra. Phone M.G.Road - 0253 6952640. Panchvati Karanja - 0253 2513514. Ravivar Peth - 0253 2574916.

COMPANY PRODUCTS

i.

Onion Chivda (Kanda Chivda)

Ingredients: Poha, ground nuts, copra, cocum, edible oil, fry onion, garlic, sugar, salt and spices

ii. Plain Chivda (Sadha Chivda) Ingredients: Poha, ground nuts, copra, cocum, edible oil, sugar, salt and spices.

iii.

Makhmali Chivda

Ingredients: Poha, ground nuts, copra, cocum, edible oil, cashew, kismis, sugar, salt and spices.

iv.

Reshmi Dry Fruit Chivda

Ingredients: Poha, ground nuts, copra, almond, cashew, kismis, cocum, edible oil, sugar, salt and spices.

v.

Vijay Bhel

Ingredients: Uffed rice, shev, bhavnagri, chivda, edible oil, sugar, cocum, spices and salt.

Makai Chivda (Cornflakes) Ingredients: Makai poha, ground nuts, copra, cocum, edible oil, cash.

vi.

Mungdal (lentils)

Ingredients: Mung dal (lentils) spices.

Shing Ingredients: Ground nuts, gram flour, spices.

Badhiya Math Ingredients: Math dal (lentils) spices.

Badhiya Mixdal (lentils) Ingredients: Mix dals (lentils), spices.

Badhiya Bhadang Mamara (puff rice) Ingredients: Bhadang mamara (puff rice), ground nuts, garlic, spices.

Badhiya Chana Dal (lentils) Ingredients: Chana dal (lentils) spices.

Availability: 50, 100, 125, 150, 200, 250 gms, 500 gms, 1 Kg (For all the products)

Organizational Chart

Madhavji

Production Marketing
Deepak More Ashirwad More

Finance
Deepak More Nilesh More Ashirwad More

Human Resource
Nilesh More

CHAPTER III

THEORETICAL FRAMEWORK

Distribution channel

Definition:A path through which goods and services flow in one direction (from vendor to the consumer), and the payments generated by them that flow in the opposite direction (from consumer to the vendor). A marketing channel can be as short as being direct from the vendor to the consumer or may include several interconnected intermediaries such as wholesalers, distributors, agents, retailers. A distribution channel is the method a company uses to get its products into the marketplace for consumer use. The traditional channel goes from supplier, manufacturer, distributor, wholesaler and retailer. Two types of distribution channels exist: indirect and direct.

Types of Distribution Channels

Indirect Channel:o

The indirect channel is used by companies who do not sell their goods directly to consumers. Suppliers and manufacturers typically use indirect channels because they exist early in the supply chain. Depending on the industry and product, direct distribution channels have become more prevalent because of the Internet.

Direct Channel:o

A direct distribution channel is where a company sells its products direct to consumers. While direct channels were not popular many years ago, the Internet has greatly increased the use of direct channels. Additionally, companies needing to cut costs may use direct channels to avoid middlemen markups on their products.

Level of Distribution Channel

Zero Level One Level Two Levels Three Levels

Zero Level distribution channel: -

Zero level channel is also known as the Direct Marketing Channel. This type of channel has no intermediaries in between the producer and consumer. One Level distribution channel: -

One Level distribution channel only one intermediary is present between the producer and the consumer. Two Level distribution channel: -

When two intermediaries like the wholesaler and retailer exist between the producer and consumer is called the two Level channel of distribution. Three Level distribution channel: -

In this type there are three intermediaries between the producer and the consumer, namely distributor, wholesaler and retailer.

Distribution - Types of distribution intermediary 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: Type of goods being sold (e.g. clothes, grocery, furniture) Type of service (e.g. self-service, counter-service) Size (e.g. corner shop; superstore) Ownership (e.g. privately-owned independent; public-quoted retail group Location (e.g. rural, city-centre, out-of-town) 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)

Importance of Distribution

Most producers use intermediaries to bring their products to market. They try to develop a distribution channel (marketing channel) to do this. A distribution channel is a set of interdependent organizations that help make a product available for use or consumption by the consumer or business user. Channel intermediaries are firms or individuals such as wholesalers, agents, brokers, or retailers who help move a product from the producer to the consumer or business user. A companys channel decisions directly affect every other marketing decision. Place decisions, For example, affect pricing. Marketers that distribute products through mass merchandisers such As Wal-Mart will have different pricing objectives and strategies than will those that sell to specialty stores. Distribution decisions can sometimes give a product a distinct position in the market. The choice of retailers and other intermediaries is strongly tied to the product itself. Manufacturers select mass merchandisers to sell mid-price-range products while they distribute top-of-the-line products through high-end department and specialty stores. The firms sales force and communications decisions depend on how much persuasion, training, motivation, and support its channel partners need. Whether a company develops or acquires certain new products may depend on how well those products fit the capabilities of its channel members. Some companies pay too little attention to their distribution channels. Others, such as FedEx, Dell Computer, and Charles Schwab have used imaginative distribution systems to gain a competitive advantage.

Functions of Distribution Channels

Distribution channels perform a number of functions that make possible the flow of goods from the producer to the customer. These functions must be handled by someone in the channel. Though the type of organization that performs the different functions can vary from channel to channel, the functions themselves cannot be eliminated. i. ii. Channels provide time, place, and ownership utility. They make products available when, where, and in the sizes and quantities that customers want. iii. Distribution channels provide a number of logistics or physical distribution functions that increase the efficiency of the flow of goods from producer to customer. iv. Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to large numbers of customers. This occurs in two ways. The first is called breaking bulk. Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. Second, channel intermediaries reduce the number of transactions by creating assortmentsproviding a variety of products in one locationso that customers can conveniently buy many different items from one seller at one time. v. The transportation and storage of goods is another type of physical distribution function. Retailers and other channel members move the goods from the production site to other locations where they are held until they are wanted by customers. Channel intermediaries also perform a number of facilitating functions, functions that make the purchase process easier for customers and manufacturers. Intermediaries often provide customer services such as offering credit to buyers and accepting customer returns. Customer services are oftentimes more important in B2B markets in which customers purchase larger quantities of higher-priced products. vi. Some wholesalers and retailers assist the manufacturer by providing repair and maintenance service for products they handle. Channel members also perform a risktaking function. If a retailer buys a product from a manufacturer and it doesnt sell, it is stuck with the item and will lose money.

vii.

Channel members perform a variety of communication and transaction functions. Wholesalers buy products to make them available for retailers and sell products to other channel members. Retailers handle transactions with final consumers. Channel members can provide two-way communication for manufacturers. They may supply the sales force, advertising, and other marketing communications necessary to inform consumers and persuade them to buy. And the channel members can be invaluable sources of information on consumer complaints, changing tastes, and new competitors in the market.

Advantages of a Distribution Channel When a customer is considering buying a product he tries to access its value by looking at various factors which surround it. Factors like its delivery, availability etc which are directly influenced by channel members. Similarly, a marketer too while choosing his distribution members must access what value is this member adding to the product. He must compare the benefits received to the amount paid for using the services of this intermediary. These benefits can be the following:

Cost Saving The members of distribution channel are specialized in what they do and perform at much lower costs than companies trying to run the entire distribution channel all by itself.

Time Saving Along with costs, time of delivery is also reduced due to efficiency and experience of the channel members. For example if a grocery store were to receive direct delivery of goods from every manufacturer the result would have been a chaos. Everyday hundreds of trucks would line up outside the store to deliver products. The store may not have enough space for storing all their products and this would add to the chaos. If a grocery wholesaler is included in the distribution chain then the problem is almost solved. This wholesaler will have a warehouse where he can store bulk shipments. The grocery store now receives deliveries from the wholesaler in amounts required and at a suitable time and often in a single truck. In this way cost as well as time is saved.

Customer Convenience

Including members in the distribution chain provides customer with a lot of convenience in their shopping. If every manufacturer owned its own grocery store then customers would have to visit multiple grocery stores to complete their shopping list. This would be extremely time-consuming as well as taxing for the customer. Thus channel distribution provides accumulating and assorting services, which means they purchase from many suppliers the various goods that a customer may demand. Secondly, channel distribution is time saving as the customers can find all that they need in one retail store and the retailer

Customers can buy in small quantities Retailers buy in bulk quantities from the manufacturer or wholesaler. This is more cost effective than buying in small quantities. However they resell in smaller quantities to their customers. This phenomenon of breaking bulk quantities and selling them in smaller quantities is known as bulk breaking. The customers therefore have the benefit of buying in smaller quantities and they also get a share of the profit the retailer makes when he buys in bulk from the supplier.

Resellers help in boosting sales Resellers often use persuasive techniques to persuade customers into buying a product thereby increasing sales for that product. They often make use of various promotional offers and special product displays to entice customers into buying certain products.

Customers receive financial support Resellers offer financial programs to their customers which makes payment easier for the customer. Customers can buy on credit, buy using a payment plan etc.

Resellers provide valuable information Manufacturers who include resellers for selling their products rely on them to provide information which will help in improving the product or in increasing its sale. High-level channel members often provide sales data. On all other occasions the manufacturer can always rely on the reseller to provide him with customer feedback.

Disadvantages of including intermediaries in the distribution channel

Revenue loss The manufacturer sells his product to the intermediaries at costs lower than the price at which these middlemen sell to the final customers. Therefore the manufacturer goes for a loss in revenue. The intermediaries would never offer their services to the manufacturer unless they made a profit out of selling his products. They are either made a direct payment by the manufacturer, for instance shipping costs or as in the case of retailers by selling the product at costs higher than the price at which the product was bought from the manufacturer (also known as markup). The manufacturer could have sold at this final price and made a greater profit if he had been managing the distribution all by himself.

Loss of Communication Control Along with loss over the revenue the manufacturer also loses control over what message is being conveyed to the final customers. The reseller may engage in personal selling in order to increase the product sale and communicate about the product to his customers. He might exaggerate about the benefits of the product this may lead to miscommunication problems with end users. The marketer may provide training to the salespersons of retail outlets but on the whole he has no control on the final message conveyed.

Loss of Product Importance The importance given to a manufacturers product by the members of the distribution channel is not under the manufacturers control. In various cases like transportation delays the product loses its importance in the channel and the sales suffer. Similarly a competitors product may enjoy greater importance as the channel members might be getting a higher promotional incentive.

CHAPTER IV

RESEARCH METHODOLOGY

RESEARCH
Research in common parlance refers to a search for knowledge. Research is a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The Advanced Learners Dictionary of Current English lays down the meaning of research as a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Redman and Mory define research as a systematized effort to gain new knowledge. Some people consider research as a movement, a movement from the known to the unknown. Research is an academic activity and as such the term should be used in a technical sense. In short, the search for knowledge through objective and systematic method of finding solution to a problem is research.

RESEARCH METHODOLOGY

Research Methodology Is a way to systematically solve the research objective. It is a systematic approach of identifying the problems, collecting the information, analyzing the information and providing alternate suggestions. In this we include the various steps that are adopted by a researcher in studying the research objective along with the logic behind it. In this we include particular techniques so that the research results are capable of being evaluated either by the researcher himself or by the others. In carrying out this project, I have collected responses from various big and small retail shops of Chivda in and around Nashik city. For this exploratory research was conducted where a sample survey of various Retailers, Dealers and distributor in Nashik was carried out.

 Steps in Research:Research process consists of series of actions or steps necessary to effectively carry out research and the desired sequencing of these steps. The chart will illustrate a research process. Defining the research problem and objectives

Developing research plan

Determining Sample design

Collection of data

Execution of the project

Analysis of data

Interpretation

Preparation of the report Steps in Research

a. Defining the research problem and objective:The research objective State that what information is needed to solve the problem. Here the objective of the research is to study the Distribution channel of the Madhavji ka Badhiya Chivda and all the competitors of Madhavji. To make the comparative analysis of all the Chivda Company and to find out the problem faced by Madhavji in their Distribution channel.

b. Developing research plan:

Once the problem is defined, the next step is to prepare a plan for getting the information needed for the research. Research design is the conceptual structure within which research would be conducted. The function of research design is to provide for the collection of relevant information with minimal expenditure of effort, time and money.

Type of Research Design: Different types of research design have emerged on account of the different perspectives from which a research study can be viewed. There are three fundamental categories that we used frequently are given below. Descriptive research design Exploratory research design Experimental research design

In this project I have used descriptive research design because it describes new ideas and events. It is flexible and easily modify in nature.

Descriptive Research:Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. In social science and business research we quite often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. Most ex post facto research projects are used for descriptive studies in which the researcher seeks to measure such items as, for example, frequency of shopping, preferences of people, or similar data. Ex post facto studies also include attempts by researchers to discover causes even when they cannot control the variables. The methods of research utilized in descriptive research are survey methods of all kinds, including comparative and correlation methods. In analytical research, on the other hand, the researcher has to use facts or information already available, and analyze these to make a critical evaluation of the material.

c. Determining Sample design:All the items under consideration in any Field of inquiry constitute a population or universe. Total population for the project was 350.

Sample:Sample is the true representation of the population: by studying the Behavior of the sample we can predict the behavior of population.

Sample size:How many people to be surveyed. For this project I have taken 204 Retailers as a sample.

Method of Sampling:Simple random sampling:This type of sampling is also known as chance sampling or probability sampling where each and every item in the population has an equal chance of inclusion in the sample and each one of the possible samples, in case of finite universe, has the same probability of being selected. For this project Simple random sampling method is carried out.

d. Collecting the data:In dealing with any real life problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that are appropriate. There are several ways of collecting the appropriate data which differ considerably in context of money costs, time and other resources at the disposal of the researcher. The research data was collected by using two ways is as follow:-

Primary Data Secondary Data Primary Data:Primary data can be collected either through experiment or through survey. If the researcher conducts an experiment, he observes some quantitative measurements, or the data, with the help of which he examines the truth. In this Project, data can be collected by the following ways: (i) By Observation method

This method implies the collection of information by way of investigators own observation, without interviewing the respondents. (ii) Through Personal interview

The investigator follows a rigid procedure and seeks answers to a set of pre-conceived questions through personal interviews. This method of collecting data is usually carried out in a structured way where output depends upon the ability of the interviewer to a large extent. Tools used for Collection of primary data: - Questionnaire.

Secondary Data: The information which is received with the help of Journals, magazines, financial reports etc., which is already present with the company. Gathered information through World Wide Web (www). Support and knowledge provided by Faculty and company guide. References used

e. Execution of the project:Execution of the project is a very important step in the research process. If the execution of the project proceeds on correct lines, the data to be collected would be adequate and dependable. The project is executed in a systematic manner and in time. If the survey is to be conducted by means of structured questionnaires, data can be readily machine-processed. In such a situation, questions as well as the possible answers may be coded. A careful watch should be kept for unanticipated factors in order to keep the survey as much realistic as possible. This means that steps should be taken to ensure that the survey is under statistical control so that the collected information is in accordance with the pre-defined standard of accuracy.

f. Analysis of data:After the data have been collected, the researcher turns to the task of analyzing them. The analysis of data requires a number of closely related operations such as establishment of categories, the application of these categories to raw data through coding, tabulation and then drawing statistical inferences. The unwieldy data should necessarily be condensed into a few manageable groups and tables for further analysis. Thus, researcher should classify the raw data into some purposeful and usable categories.

Coding operation is usually done at this stage through which the categories of data are transformed into symbols that may be tabulated and counted. Editing is the procedure that improves the quality of the data for coding. With coding the stage is ready for tabulation. Tabulation is a part of the technical procedure wherein the classified data are put in the form of tables. The mechanical devices can be made use of at this juncture. A great deal of data, especially in large inquiries, is tabulated by computers. Computers not only save time but also make it possible to study large number of variables affecting a problem simultaneously.

g. Interpretation:If the researcher had no hypothesis to start with, he might seek to explain his findings on the basis of some theory. It is known as interpretation. The process of interpretation may quite often trigger off new questions which in turn may lead to further researches.

h. Preparation of the report:After above all the steps completed then finally prepared the report. This report must be done with great care keeping in view the following: (i) the preliminary pages; (ii) the main text, and (iii) the end matter.

CHAPTER V

DATA ANALYIS & INTERPRETATION

About Madhavji
The Madhavji have Zero and One Level distribution channel i.e. Retailer is the intermediaries between manufacturer and the consumer. The manufacturer first distributes the products to the retailer and finally it reaches to the consumers or directly manufacturer to the final consumer. For zero level Channel Madhavji open their self retail outlets in different places in Nasik. This retail shop placed in Raviwar Peth, M G Road and Panchavati Karanja. Customer directly buys the product from this retail shops. Madhavji

Consumer Zero level channel For One level channel Madhavji distributes their products to the retailers in different places in Nasik. In Nasik Madhavji have more than 30 retail shops and after the survey Madhavji increase the retail shops. Madhavji

Retailer

Consumer One level channel Suppliers: Madhavji Supply their products through distributor and through their salesman. Some Retailers directly come to the Madhavji Retail outlets for purchasing the chivda for retailing. Transportation cost bear by the Madhavji (manufacturer). At the time of negotiation, distributor added this transportation cost in the price of the product and pays that value

Madhavji gave 100% replacement of the products if any problem occurred in the products. Madhavji gave discounts on bulk purchasing and also given credit period to the retailers and distributors.

About Competitors
Madhavji have large number of competitors Namely Kondaji, Balaji, Haldiram and Maruti and some other small companies also. Kondaji, Balaji, Maruti and Haldiram have good distribution set up than the Madhavji and because of this the sale of competitors is much more than Madhavji. All the competitors used more than two channels, these are as follows, Kondaji and Balaji sell their product directly from their self retail shops to the customers or through distributors to retailers and through distributors to dealers and dealers to retailers. They follow Zero level, one level, two level and three level channels. Producer Consumer Distributor Dealer Retailer

Three level distribution channel Producer Consumer Distributor Retailer

Two level distribution channel Producer Consumer Retailer

One level distribution channel Producer Consumer Zero level distribution channel Haldiram and Maruti sell their product directly to the Retailers through Salesman or through distributors to retailers and through distributors to dealers and dealers to retailers. They follow one level, two level and three level channels.

1) Do you keep chivda?

Parameter No. of Retailers Percentage (%)

Yes 178 87.2549

No 26 12.7451

Total 204 100

No. of Retailers
13%

Yes No 87%

Interpretation: 87% percentage of Retailers keeping Chivda in total sample size of 204, 13% of remaining Retailers is do not keep the same.

2) Who supplies you the Product?

Suppliers Kondaji Madhavji Balaji Haldiram Maruti Other Total

Manufacturer 7 1 9 11 16 59 103

Dealer 1 0 2 3 4 17 27

Distributor 36 4 52 37 21 104 254

Self Purchase 5 1 2 0 0 8 16

120

100

80

Kondaji Madhavji

60

Balaji Haldiram Maruti

40

Other

20

0 Manufacturer Dealer Distributor Self purchase

Interpretation: Maximum Chivda supplied by the Distributor, remaining material supplied by the Manufacturer mostly, then Dealer, Wholesaler, etc.

3) Who bears the transportation cost?

Suppliers Manufacturer Dealer Distributor Shopkeeper Kondaji Madhavji Balaji Haldiram Maruti Other Total 7 1 9 11 16 43 87 31 o 48 33 15 37 164 4 4 6 7 10 17 48 5 1 2 0 0 1 9 (%) 28.25 53.25 15.58 2.92

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Kondaji Madhavji Balaji Haldiram Maruti Other Shopkeeper Distributor Dealer Manufacturer

Interpretation: Transportation cost largely bears by the distributor, Distributor bears 54.54% of transportation cost out of total 100%, remaining cost bearers are Manufacturer who bears 28.46% then others.

4) Frequency of placing an order?

Parameter No of Brands Percentage (%) Daily 11 3.12 Once in a week 287 81.53 Twice in a week 36 10.22 Twice in a month 18 5.11 Total 352 100

No of Brands
300 250 200 150 100 50 0 Daily Once in a week Twice in a week Twice in a month

No of Brands

Interpretation: Large numbers of Retailers are placing their order once in a week (81.53%).

5) Is supply on time?
Parameter Numbers Percentage (%) Always 223 62.12 Never 33 9.19 Sometimes 103 28.69 Total 359 100

Supply

29%

9%

62%

Interpretation: Supply of material (Chivda) is on time in 62.12% out of total 100%, 28.69% is delay out of100% and remaining 9.19% never supply on time.

6) What type of services Of the Brands given to you?

Services Respondent Percentage (%)

Good (1) 211 58.77

Ok (0) 135 37.60

Bad (-1) 13 3.62

Total 359 100

Service
250 200 150 100 50 0 Good (1) Ok (0) Bad (-1)

Numbers

Interpretation: 211 respondents said that Brands provide good service, in between 100%, there are 58.77% are the good service providers.

7) Is there any Replacement policy? Replacement Number of Retailer Percentage (%) Yes 238 66.30 No 121 33.70 Total 359 100

Replacement

34%

no 66% yes

Interpretation: 66.30% of Suppliers or Manufacturer Provide Replacement and remaining 33.70% of not provide replacement.

8) Which form of Credit period given to you? Credit period Monthly no one week two weeks No of people 4 260 85 10 Percentage 1.1142 72.423 23.677 2.7855

Credit Period
300 250 200 150 100 50 0 Monthly no one week two weeks Total

Interpretation: 72% of Suppliers does not give any credit period to the retailers and remaining 28% of Suppliers giving Credit period in different ways like one week, two week, etc.

9) The Brands do you keep in your shop can give you Discounts? Discounts Respondent 94.43 Percentage 5.57 100 Yes 339 No 20 Total 359

Discounts

350 300 250 200 150 100 50 0 no yes Total

Interpretation: Except few Suppliers they not have given discounts To the Retailers.

10) The Brands do you keep in your shop can give you any type of commission? Commissions Respondent Percentage (%) Yes 5 1.3927577 No 354 98.607242 Total 359 100

400 350 300 250 200 150 100 50 0 Respondent Yes No

Interpretation: Except few suppliers no one had given any commission to the Retailers.

11) In which time your sell is more? Peak period Morning 191 Evening 22 Festivals 102 Full day 13 Holiday 359 Total 3.62117 100 28.41226 6.128134 53.20334 Respondent 31 8.635097 Percentage

Peak period
4% 28% Morning evening Festiwal 6% 53% Full day Holidays 9%

Interpretation: Maximum sales of Chivda are during evening period.

12) How much quantity of Chivda do you sell daily? Brands Balaji Haldiram Kondaji Madhavji Maruti Other Total Daily sales 229 166 151 47 99 1018 1710 Percentage (%) 13.40 9.70 8.84 2.74 5.78 59.54 100

Daily selling
13% 10% 9% 59% 6% 3% Balaji Haldiram Kondaji Madhaji Maruti Other

Interpretation: All Branded Chivda are selling in almost equal proportion but the local market Chivda are selling more in Nasik city than the Branded.

Extra que: - No of shops keeping brands Brands Kondaji Madhavji Balaji Haldiram Maruti Kondaji Total Retails 49 6 65 51 41 49 212 Percentage (%) 23.11 2.83 30.66 24.05 19.33 23.11 100

70 60 50

Axis Title

40 30 20 10 0 Kondaji 49 madhavji 6 Balaji 65 Haldiram 51 maruti 41

Total

Interpretation: Madhavji have very less retail shops related to other competitors.

13) Do you promote _________ Brand/Brands to customer? promote d brand Respondent Percentage Yes 10 2.793296 No 348 97.2067 Total 358 100

Respondent
3%

Yes No

97%

Interpretation: Only 3% of the Retailers promote the brands of Chivda.

14) Do you participate in exhibition?

Participation in exhibition Respondent Percentage

Yes 0 0

No 358 100

Total 358 100

Respondent
Yes 0% No

100%

Interpretation: No one Retailer participate in exhibitions

15) Is there any feedback mechanism? Feedback mechanism Yes Respondent Percentage No 62 17.27019 297 82.72981 Total 359 100

Respondent
17%

Yes No 83%

Interpretation: 62 (17%) Retailers said yes for feedback mechanism out of 359 (100%) retailers and 297 (83%) Retailers said no for the same.

16) How is Backend Margin given & in which form? Backend margin Respondent Percentage (%) Yes 2 0.56338 No 353 99.43662 Total 355 100

Respondent
Yes 1% No

99%

Interpretation: Only two Retailers say yes for back end margin out of 355.

CHAPTER VI

FINDINGS AND RECOMMENDATIONS

FINDINGS
Madhavji have the very weak Distribution channel as compared with its competitors. Madhavji does not provided good Service to the retailers. Retailers not happy with the services provided by the Madhavji In the Nasik city, in some places people have no awareness about Madhavji. Madhavji does not maintain good relation with Suppliers. A daily sale of all brands of Chivda in Nasik is near about 2000kgs. Very less number of shops keeping Madhavji products. Madhavji does not promote their product. Madhavji does not take any feedback of the market. Madhavji have low Production capacity. Distributor not goes to all the area in Nasik.

RECOMMANDATIONS

Set up new distribution channel Increase the Promotional activity Increase the production capacity Focus on services mainly on Supply Increase shops in Nasik city Maintain good relation with suppliers They want to launch Different schemes for retailers Time to time retailer feedback about customer requirements Madhavji focus on Institutional buyers

ANNEXURE

Annexure

QUESTIONNAIRE FOR RETAILER

1) Name of shop :2) Name of shopkeeper :3) Address 4) Contact details ::-

5) Year of establishment :6) Do you keep chivda? a) Yes b) No

7) Who supply you the product? Supplier/Brands Kondaji Manufacturer Wholesaler Dealer Distributor Madhavji Balaji Haldiram Other_______

8) Who bears the transportation cost? a) Manufacturer c) Dealer b) Shopkeeper d) Distributor

9) Frequency of placing an order? a) Daily c) Twice in a week b) Once in a week d) twice in a month

10) Is supply on time? a) Never 11) Comm ission Sale for Peak (Quanti promo period ty) (Yes, No) b) Always c) Sometimes

Service (good Parameter 1, ok 0, bad -1) Name of brand Name of brand Name of brand Name of brand

Replace ment (Yes, No)

Terms of Credit Disc replac period ount ement

12) Do you promote _________ Brand/Brands to customer? a) Yes b) No

13) Do you participate in exhibition? a) Yes b) No

14) Is there any feedback mechanism? a) Yes b) No

15) How is Backend Margin given & in which form? (Credit note/ kind)

REFERENCES
WEBSITE VISITED: www.madhavjikachivda.com www.google.com www.Investopedia.com

BOOKS REFERRED: Research Methodology (C. R. Kothari) Marketing Management (Kotler Philip, Kevin Keller, Abraham Koshy, Mithileshwar jha) Marketing Channels (Six edition- Coughlan, Anderson Erin) Marketing management (Chetan Chaudhari)