Pitambri products Pvt. Ltd.

Company profile
Pitambari Products Pvt. Ltd. is an outstanding exporter and manufacturer of high quality Dish wash Liquid, Detergent Powder, Detergent Bar, Hair Oil, Lactating Granules, Shining Powder and many other products. All these are prepared from best in class ingredients that are sourced by company from vendors who are highly trusted and certified. Post production, various tests are carried out the produced output to ensure its effectiveness and perfection in every aspect. With a strong commitment towards attaining 100% customer satisfaction, Pitambari Products Pvt. Ltd., embarked on its business journey in 1986. The company came into fruition when Mr. Ravindra Prabhudesai and his father Mr. Vamanrao Prabhudesai turned their vision into reality. The idea was to create a dynamic organization, where hard work, integrity and improvisation would be the guiding principles. Today, Company is one of the top manufacturers and exporters in our domain, offering an array of premium quality products under the flagship brand 'Pitambari'. Established in the year 1986, we Pitambari Products Pvt. Ltd. have emerged as the leading processors, suppliers and exporters of health care and home care products. Our company has been approved by FDA India and is awarded an ISO 9001:2000 certification by DNV Netherlands. Further, all our manufacturing units are approved by GMP. The compendious range of products that company offer is known for its skin friendliness, effectiveness, purity and reliability. The raw material is procured from the most praiseworthy and authentic vendors across the world. Further, there are well equipped manufacturing units in which bulk production takes place. These units are managed and maintained by highly skilled and qualified personnel, who scrutinize the entire manufacturing process and inspect the quality of products. Company ensures dispatch of products within the stipulated time frame.

Vision and Mission

We are inspired by a vision to continue developing qualitative and innovative products, which facilitate cleanliness of environment and better health of people throughout the globe. Our mission is to completely understand the diverse needs of customers based in different parts of the world, and satisfy those needs with excellent quality Homecare and Healthcare products.

Business Type
Exporter, Manufacturer

Export Market:

Malaysia Singapore Thailand Mauritius UAE South Africa Saudi Arabia Bahrain Oman Pakistan Bhutan Nepal Sri Lanka

Product range of this Company:(1)Health care

(2)Personal Care

(3)Agricare

(4)Home care

Why Rural Market?

Rural India accounts for over 75% of India's population and this in itself offers a tremendous opportunity for generating volume driven growth. Contrary to general perceptions, incomes in rural India have improved dramatically over the years mainly due to the eleven successive normal monsoons and increasing crop yields. Foodgrain production topped 200 m tonnes in financial year 1999 as compared to a production level of only 176 m tonnes in financial year 1991. Further, the tax benefits associated with incomes in rural areas boost spending power of the average rural family. These factors have created a vast market that has led to a rush amongst companies to tap this latent demand.

Problem Faced In Rural Distribution

Large number of small markets Dispersed population and trade Poor road connectivity Multiple tiers higher costs Poor availability of suitable dealers Low density of shops per village, high variation in their concentration Inadequate bank and credit facilities for rural retailers. Poor viability of retail outlets Poor storage systems Highly credit-driven market, low investment capacity of retailers Poor visibility and display of product Poor communication of offers and schemes poor reach of media.

Current Distribution Strategies Followed By Company In Rural Market

Input Supply

Manage supply ingredients to ensure availability to produce products. Maintain purified water supply for quality and availability to produce products.

Manufacturing

Ensure best technology is available to produce products and mix ingredients. Ensure quick storage and inventory processes to maintain freshness and quality.

Sales

Determine demand by past sales and future marketing. Adjust quantities produced in real time to meet appropriate demand.

Output Supply

Determine inventory of ingredients to order new supplies. Maintain purified water supply so ensure continuance of production.

Manufacturing

Ensure proper packaging to ensure quality and freshness in products. Maintain quick local distribution to ensure freshness and quality products.

Sales

Keep positive distribution levels to all sales outlets to maintain positive sales.

Meet any new demand or competition with products and consumer needs.

Other strategies

Mobile van distribution. Haat distribution Push strategies by giving extra margins to the retailers.

Suggestions By Us After Analysis The Current Situation And Distribution Strategies Of The Company

Distribution Strategies To Be Followed By Company To Be Successful In Rural Marketing

Ensuring Reach & Visibility The thing which is critical, is to get the Stock Keeping Unit right, as rural retailer cant afford to keep many different SKUs. In such an environment, being first on the shelf in the product category and developed a privileged relationship with the retailer is a source of competitive advantage to consumer good companies. Pitambari products pvt ltd. Is not good in ensuring reach and visibility of their product in rural marketing. They have to ensure their product to have maximum reach among the villages of india.

 Reaching upto Mandis, Towns, Semiurban centres Organizations can cater to rural needs for consumer durables, clothes, kitchen equipment and agri-input by making their products available upto feeder towns, semi-urban centers or mandis. In this also company is lacking behind. They are confined only to the Maharastra and Gujrat region they are not concern about the north india and other parts where still the market is untapped by the Pitambari. Targetting larger villages There are only 85000 large villages out of more than 6,38,000 villages. But they have 40% of the rural population and 60% of total consumption. Since company is now focusing on the rural population still there is vast opportunity for the company since they have not reached at the maximum rural markets. So they have to plan their strategies in such a way that should provide them the maximum reach among the Rural people. Understanding of Peak seasons Peak season times in rural parts are Festivals, harvest and marriage seasons. Bulk of the demand for the consumer durables concentrated during these times. The rural consumers are in shopping mood and have the cash for the same at this time. Organizations have to ensure that their products are available at these times. In this there is no such peak seasons that could help Pitambari because they are into the business of health care product, agri care etc. Delivery vans Company delivery vans which can serve two purposes; they can take the products to the customers in select rural areas and also enable the firm to establish direct contact with them and thereby provide an opportunity for promotion. This is the most important aspect to be followed because this is the main source of distributing the products to the rural market. Collaboration for Distribution Various organizations with comparatively lesser distribution reach can collaborate with organizations that already have achieved high penetration levels in rural areas. For eg. P&G had tie-ups with

Godrej, Marico Industries and now its planning one with Nirma for distribution of Camay soaps. Currently Pitambari are not good at this because they have not collaborated with the distributers to have the maximum reach of the product. So they may go for the collaboration with some other company to have their distribution network. Converting unorganized sector manufacturers into distributors Small scale manufacturers have good knowledge of the territory and have good sales network. Organizations like Exide are attempting to convert these small scale manufacturers to become their dealers. This is the way that make Pitambari successful. They can convert unorganized sector manufacturers into their distributors by providing the better margins and revenue. This makes their competition reduced because unorganized sector manufacturers can give them competition by producing the fake products. Companys own Distribution Network Project Shakti of HUL is one such example. The company should do such project as the HUL had done in order to make the brand known to the people and also creating the positoive brand image. Haats -Along with permanent retail outlets, haats can also be utilised to make the products available to rural consumers. Haats are held on a particular day of every week. Typically, an average haat has 300 stalls. A haat usually serves around 5000 visitors. So if we consider average population of an Indian village to be 1000, then one haat caters to the needs of 5 villages. There are almost 47,000 haats in India. The sale per haat per day is Rs. 2.25 Lakh (approximately) and average sale per outlet is Rs. 900 (approximately). large number of retailers also buy products from haats for their village stores. About 90% of sales on haats are on cash basis. The participation fees at haats are a flat Re. 1 to Rs. 5 per stall which is very low. Melas -Over 25,000 melas are held every year all over the country. Out of these, 5000 are commercial melas, 2,000 are cultural melas and 18,000

religious melas. The following facts regarding melas will help us to understand their importance to marketers: Number of visitors per mela is approximately 7.5 lakh. On an average, 850 outlets are set-up in every mela. Average sale per day in a mela is Rs. 25 Lakh. Visitor turn-out in a mela is very high. A large part of the visitors in these melas are women and children, which is significant because rural women are restricted to leave village often. Melas are generally used to sell durables, high-priced items and new products launched.

Examples of effective use of melas by marketers are: Active participation of Maruti in rural melas like the kisan mela (Ludhiana), Sonepur mela (Bihar), Kila Raipur sports mela (Punjab) and Pushkar mela (Rajasthan). The melas provide both a platform for demonstration and improving product awareness, and also booking new sales. In 2001, HLL ran a campaign at the Allahabad Kumbh Mela to demonstrate to the visitors the importance of usage of soap for better health and hygiene. Rural people in general believe that washing hands with water alone is enough, so there is no need to use soaps. HLL representatives educated them about use of soap for better health and hygiene. This awareness campaign has helped HLL to increase the sales of Lifebuoy in rural market.

Hub & Spoke Method of Distribution- The urban model of distribution in which the products are transported directly from the bottling plant to retailers is not very effective in rural markets as taking stock directly to retail point would be costly due to the long distance to be covered. So Coca Cola has opted for a hub and spoke method of distribution system.

Designing The New And Effective Distribution Plan For The Company

A distribution channel strategy enables you to sell to customers in geographical areas or market sectors that your direct sales team cannot reach. You can choose from a number of distribution channels, including wholesalers, retailers, distributors and the Internet. Each channel gives you different options for dealing with customers and prospects. However, to ensure that your distributors operate effectively on your behalf, your strategy must incorporate the right level of control and support. Reach If your strategy is to grow your business regionally or nationally, highlight the geographical areas you want to reach through a distribution channel and identify a network of distributors or retailers that provide existing coverage of the territories. If you are planning to export products, focus on established distributors with detailed local market knowledge. Consider marketing your products on the televisions, print ads etc. so that you can extend coverage to customers where there is no suitable physical distribution network. Cost Although a distribution strategy gives you a ready-made platform for expansion, its important to compare the cost of dealing through indirect distribution channels with the cost of setting up your own network or direct sales operation. Without a distribution network, you will have to commit resources to order processing, stockholding, delivery, invoicing and customer service. Compare that with the lower margins you will make by giving distributors a discount for providing a similar level of service and providing them with a program of marketing and training support.

Contribution Your strategy should also take account of the potential contribution of each distribution channel. Concentrate on working with distributors that give you access to an additional customer base, with no additional direct sales and marketing costs. Distributors also provide you with local market knowledge, enabling you to establish your business in new markets without incurring heavy market entry costs. Support Support and control are critical factors in distribution strategy. Appointing a manager to work with distributors enables you to monitor their performance and identify their support needs. Develop marketing support programs to meet the needs of different channels. Options include funds for advertising or direct marketing campaigns or templates that enable partners to develop their own campaigns. If channel sales represent a significant proportion of your business, develop advertising and marketing campaigns to drive business to your channel partners. Operating a training program will improve distributors product and marketing knowledge and enable them to deliver a higher standard of service to customers. Customer Service Its important to identify the types of customers you wish to serve directly. Typically, these would be your largest customers or customers that demand levels of technical support beyond your partners capability. Use channel partners to deal with large numbers of smaller customers cost effectively so that you can concentrate your resources on your key accounts.

Other suggestions

Company should go for the CSR activities so that it can give the brand image. Company should go for the working distribution model as HUL and ITC.

Company should promote through the right IMC tools to have the maximum Reach among the rural people.

Refrences
http://smallbusiness.chron.com/develop-distribution-channel-strategy56913.html http://www.scribd.com/doc/35399173/Distribution-Strategy-in-ruralmarketing http://www.business-standard.com/article/management/designing-the-rightrural-distribution-model-113072100626_1.html Eric Langer and Abhijeet Kelkar, Pharmaceutical Distribution in India, BioPharm International (September 2008) https://www.pitambariproducts.com https://www.indiamart.com/pitambari profile.html Marketing Channel Strategies in Rural Emerging Markets Unlocking Business Potential By Benjamin Neuwirth