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Internship Report

A STUDY ON EFFECTIVENESS OF
DISTRIBUTION CHANNELS OF BINDU
BRANDED SOFT DRINKS
BY

Prajwal C K
USN: 4VP14MBA27

Submitted to

VISVESVARAYA TECHNOLOGICAL UNIVERSITY, BELAGAVI


In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION


Under the guidance of

Mr. Narayana Nayak A

Mr. Krishnappa

Lecturer, Dept. of MBA


Vivekananda College of Engineering & Technology
Puttur (D.K.)

Chief Financial Officer


Megha Fruit Processing Pvt. Ltd.
Puttur (D.K.)

Department of MBA
VIVEKANANDA COLLEGE OF ENGINEERING AND
TECHNOLOGY
Nehru Nagar, Puttur (D.K.) - 574 203
2014 2016

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

Vrl'nx,tN,tNnA CoLr.sco oF

ENGTNEERTNG AND

TECHNoLoGy

(Affi liated to Visvesvaraya I eclnological Universily, Belagavi)


PUTTUR (D.K.)- 574 203

CERTIFICATE
This is to certify that Prajwal C K bearing USN 4VP14MBA27, is a bonafide student of

Master

of

Business Administration course

of the

Institute (2014-16), affiliated to

Visvesvaraya Tecbnological University, Belagavi. Intemship report

on ..A study

on

effectiveness of distribution channels of Bindu branded soft drinks" is prepared by him


under the guidanoe of

Mr. Narayana Nayak A, in partial fulfilLnent ofthe requirements for

the award ofthe degree of Master ofBusiness Administration ofVisvesvaraya Technological

University, Belagavi, Kamataka.

Kl-}1-

INTERNAI, (lI]IDF]

DIRECTOR

DIFECTOF
MBA ProgramoVC
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""i,t,,".,n", Karnataka,

ET

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PRINCIPAL
r'ivekanaida College ol

I I'(hnt ' tf..

211 D K Drtl'

r.rr. r ri.i.rtD!y
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lndia

External Vive
Name ofthe ExamiDer:
1.

Signature with Datc

203

DECLARATION
I Prajwal C

hereby declare that the Ifiemship repot entitled

distribution charmels

of Bindu

"A study on effectivencss of

branded soft drinks" with rference

Processing Pvt Ltd, Puttur." prspared by me under dle gddance of

to "Megha

Fruit

Mr. Narayana Nayak A,

Lecturer of M.B.A Departmelt, Vivekanarda College ofEngineering and Technology, Puttur

(D. K.) and exlemal assistance by Mr. I{rishnappa, Chief Financial Officer, Megha Fruit
Processing Pvr Ltd.

also declare tllat this lDtemship work is towards

tle partial li fillnent ofthe

university

rgrdations for dre award of degree of Master of Business Administration by Visvesvaraya


Technological University, Belagavi.

have undergotre a suomer project of a period of Ten weeks-

furdrer declare that this

prcject is based on fte original study undertaken by me and lus not been submitted for the
award of ary degree/diploma fiom any ofter Universityllnstitution.

w
Placei Puttur (D.K.)

Date: ll loq /&0\6

Prajwal C

USN: 4VP14MBA27

ACKNOWLEDGEMENT
A project is always outcome of co-operation, encouragement and guidance of many people and
so in this. I consider it as my privilege to express a few words of gratitude and respect to all
those who guided and inspired me in completing this project.
I owe my reverential gratitude to my guide Mr. Narayana Nayak A, Lecturer, Department of
Business Administration, who has enthusiastically imparted relevant information, guided and
supported me in carrying out this project.
I would take the privilege to thank Mr. Shreehari M. I. HR Manager, Megha Fruit Processing
Pvt Ltd, for giving me an opportunity to do my project in their organization. And also I would
like to thank my external guide Mr. Krishnappa, Chief Financial Officer, Megha Fruit
Processing Pvt Ltd, for giving me valuable information and guiding me throughout this project.
My sincere gratitude to our beloved Director of MBA Department Prof. Dr. B. M. Santosh,
whose timely suggestions and encouragement supported me to complete this project successfully.
I express my profound and sincere gratitude to principal, VCET puttur for support in carrying out
this project.
I would also like to thank all the faculty members of MBA Department, my parents, and all my
friends for their constant support and encouragement.
This project report was written by me and in my own words, except for quotations from
published and unpublished sources which are clearly indicated and acknowledged as such. My
internal guide will not be held responsible if any plagiarized material is found in this report as I
have been advised by him from time to time with regard to nature, unacceptability and
consequences of plagiarism.

PRAJWAL C K

TABLE OF CONTENTS
Executive Summary
Chapter 1. Introduction .

1-3

Chapter 2. Industry and Company profile.

4-23

Chapter 3. Theoretical Background of the Study... 24-30


Chapter 4. Data Analysis and Interpretation.. 31-58
Chapter 5. Summary of Findings, Suggestions and Conclusion.. 59-61
Bibliography
Annexure

LIST OF TABLES

Table no.

Particulars

Page no

2.1

Market Growth Rate

2.2

Raw material required

2.3

Power requirement

2.4

Total water requirement for proposed project

10

2.5

Distribution network of Megha Marketing

13

2.6

Balance sheet of Megha fruit processing Pvt ltd

20

2.7

Calculation of Current Ratio

22

2.8

Calculation of Cash ratio

22

2.9

Calculation of Quick Ratio


Distributers are association (contact) with MEGHA FRUIT

23

4.1
4.2

PROCESSING PVT LTD.

32
33

4.3

Distributors annual order size


Particular feature customer (retailer) is concentrating more while
purchasing BINDU products

4.4

Distributors average monthly sale target achievable.

35

4.5

The number of sales representatives working with Distributors

36

4.6

37

4.8

Distributors opinion regarding MEGHA marketing efforts


Allowance providing to Distributors for advertisement and
promotions
Level of satisfaction about profit margin provide by MEGHA fruit
processing Pvt ltd

4.9

Distributors get the product from the company as and when they need

40

4.10

About distributors ordering BINDU products

41

4.7

34

38
39

42

4.12

Credit assistance provide by the company with respect to payment.


Company reacts to the response of distributors complaints
/feedback

4.13

Calculation of correlation coefficient.

44

4.14

Retailers monthly order size

45

4.11

4.15

Retailers ordering BINDU products from the Distributor.

43

46

4.16

Retailers opinion regarding the earning from BINDU products


compared to other brands

47

4.17

Retailers relationship with MEGHA Distributors

48

4.18

Distributor visiting retailers outlet on the basis of.


Retailers get the product from the Distributor as and when they
need
Retailers satisfaction with the service provided by the sales
representative of MEGHA Distributor

49

Distributer take feedback from the retailers


MEGHA Distributor provides any support schemes (e.g. free
pieces, extended credit, etc) to the Retailers
Distributor provides facilities for storing displacing BINDU
products in Retailers premises.
Retailers find any defects in BINDU products distributed by
Distributor

52

4.19
4.2
4.21
4.22
4.23
4.24

4.26

MEGHA distributors response to the given feedback from the


Retailers
Promotional tools does the Distributor use to promote the BINDU
products

4.27

Calculation of correlation coefficient.

4.25

50
51

53
54
55
56
57
58

LIST OF FIGURES AND CHARTS


Table no

Particulars

Page no.

2.1

Manufacturing process flow chart

2.2

Work flow model

11

2.3

Distributer channel of Bindu brand soft drinks

12

3.1

25

4.1

Distribution channel
Distributers are association (contact) with MEGHA FRUIT
PROCESSING PVT LTD.

4.2

Distributors annual order size

33

4.3

Particular feature customer (retailer) is concentrating more


while purchasing BINDU products

34

4.4

Distributors average monthly sale target.

35

4.5

The number of sales representatives working with


Distributors

36

4.6

Distributors opinion regarding MEGHA marketing efforts

37

4.7

Allowance providing to Distributors for advertisement and


promotions

38

4.8

Level of satisfaction about profit margin provide by


MEGHA fruit processing pvt ltd

39

4.9

Distributors get the product from the company as and when


they need

40

4.10

Distributors ordering BINDU products

41

32

4.11 Credit assistance provide by the company with respect to payment.


Company reacts to the response of distributors complaints
4.12 /feedback

42

4.13 Retailers monthly order size

45

4.14 Retailers ordering BINDU products from the Distributor.


Retailers opinion regarding the earning from BINDU products
4.15 compared to other brands

46

4.16 Retailers relationship with MEGHA Distributors

48

4.17 Distributor visiting retailers outlet on the basis of.

49

Retailers get the product from the Distributor as and when they
4.18 need
Retailers satisfaction with the service provided by the sales
4.19 representative of MEGHA Distributor
4.2 Distributer take feedback from the retailers

43

47

50
51
52

MEGHA Distributor provides any support schemes (e.g. free


4.21 pieces, extended credit, etc) to the Retailers

53

Distributor provides facilities for storing displacing BINDU


4.22 products in Retailers premises.

54

Retailers find any defects in BINDU products distributed by


4.23 Distributor
MEGHA distributors response to the given feedback from the
4.24 Retailers
Promotional tools does the Distributor use to promote the BINDU
4.25 products

55
56
57

EXECUTIVE SUMMARY
This project report is titled A study on effectiveness of distribution channels of Bindu
branded soft drinks of Megha Fruit Processing Pvt Ltd. Narimogeru, puttur. The report is
submitted in partial fulfillment of the necessity for the award of Master of Business
Administration (MBA).
The objective is to study the Distribution channel followed by Megha fruit processing Pvt ltd.
Also to analyze the problems associated with the distribution of BINDU products, if any. To help
the Megha Fruit Processing Pvt Ltd to understand the problem in their distribution channel and
find solution for the problems.
The study contains profile of the company, marketing operations, function of department. The
information collected through company files and other related materials like journals, prospectus.
For the study purpose primary data collected from a sample size of seven distributers of Megha
fruit processing Pvt ltd and also from fifty retailers. Research instrument used questionnaire and
interview method.
It can be concluded that due to growing competition and changing customer preference the
dealers as well as the company have to constantly upgrade their intelligence and customer
profile. An effective distribution channel helps to meet the customer needs, wants and
Expectations in a right time, in a right place and also in a right manner.

Chapter-1

INTRODUCTION
1.0 Introduction about the internship:
Internship or project work is the requirement of MBA degree under VTU. It is a program to
connect the gap between knowledge and its application through a series of intervention that
will enable students of VTU MBA programme. The main objective of internship is in-plant
training to get an exposure working environment in an organization. This was an opportunity
getting me to related concepts learned by me to the practical application in the organization.
This internship training helped me in interacting with highly experienced managers which
helped me to improve my practical knowledge.

1.1 Topic chosen for study:


A study on effectiveness of distribution channels of BINDU branded soft drinks of Megha
fruit processing Pvt ltd.

In The four marketing mix element that is product, price, place, promotion and distribution
i.e. the most important element is channels of distribution. The success and failure of a firm
depends largely upon the efficiency of distribution. In the field of marketing channel of
distribution indicates routes of path way through which the flow of goods and services move
from producer to ultimate consumers.
We can say that channels of distribution may be defined as an organization network of
agencies and institution which is the combination performs all the activities required to
connection producers with consumer, and consumer with producers in order to accomplish
the marketing task.

1.2 Need for the study:


Distribution channel is one of the important aspects of marketing it is a linking chain between
producers to ultimate consumer. As my specialization of marketing I chose this topic to better
my prospectus. The study will also help the company to overcome their weakness and adopt
good distribution channel.

1.3 Objectives of the study:


The main objective of the study is to understand the distribution channel followed by the
company and its effectiveness in bringing product in right time to right consumers.
To study the main objective following are the necessities:

Know the performance level of the obtained distribution channel.

Problems related to the existing channels.

Satisfaction level of the customers (retailers) and distributors about the existing
distribution channel.

1.4 Scope of the study:

Effectiveness of distribution channel.

Study conducted in Mangalore (distributors) and puttur (retailers).

1.5 Methodology adopted:


The sources of data collected are classified based on nature of data into two groups.
Primary data: the primary data was obtained by visiting the retailers outlets at puttur and also
meeting the distributors at Bindu depot at Mangalore.
Secondary data: secondary data was composed from company broachers, websites, and
newspapers.

1.6 Literature review:


Article on Manage consolidation in the distribution channel
In the distribution channel consolidation among downstream customers has the most
important Trigger of consolidation. Customer dominance occurs with the emergence of a few
dominant customers, in the small rural companies they fallow traditional, which distribution
customer base or the banding together of customer organization into cooperative purchasing
groups.
Article on Distribution channels and their roles in the enterprise
The promotion plan of the firm stands not only for achieving specific production goals. The
main thing is providing finished product to the customer. A basic condition for achieving the
goal setting in the trade that the finished product wants meets the need of the consumers. In
particularly the product should be reach the consumer at the right time and place, for that
intermediaries plays main role in this process.
2

Article on Effectiveness of Distribution Network


The distribution mediators confirm their activities on a daily basis. In The modern marketing
leader, use the certain option like competitive pressures, mergers, acquisitions, new product
lines and greater customer expectations, and so forth. This will effect on cost of doing
business in the new economy. This research wills finding the ability to maximize the price
and profit that influence over the efficiency as the distribution link of the supply chain.
Article on Impact of Distribution Channel Innovation on the Performance of Small and
Medium Enterprises
Impact of modernization in distribution channel performing function on particularly small
and medium enterprises is under researched. This study also found that distribution channel
effectiveness moderate the relationship between assortment and transportation and company
performance. All this finding is critical for company, who has to give more competition to the
global market.

1.7 Benefits of the study:


The study will confront me the following

Knowing the culture of the company.

Getting Clear picture about distribution channel.

Finding the satisfaction level of the customers.

Handling customer complaints on field.

1.8 Limitations of the study:

Distributors and retailers are often discouraged answering in detail.

Non availability of confidential information.

Chapter2

INDUSTRY PROFILE AND COMPANY PROFILE


2.1 Industrial profile
A Brief History of soft drinks:
In the late 18th century, scientist makes an important role in reproducing naturally carbonated
mineral water. The

first person Joseph Priestley who have first discovered method of

influencing water with carbon dioxide to make carbonated water in the year 1767. His
invention of carbonated is the make a major components of most soft drinks. Later 1772 Jons
Jacob Berzelius who started to add flavors to the carbonated water like spices, juices and
wine.
In olden days soft and aerated drinks targeting over the only middle class and the affluent,
this segregation is not valid more. Today soft and aerated drinks are consumed by all except
who cannot offer to buy soft drinks. One of the studies of NCAER says that 91% of soft
drinks sales are made to the lower, middle, upper middle classes.
The GDP growth rate of beverage market is growing twice. The Indian market grown by at
least 12%, but in china market will growing 16% and also in Russian market almost four
times the rate of growth of the Indian market.
The market size of soft drinks in India is currently estimated around of Rs. 15,000 crore with
an annual growth rate of 20%. The Fruit & Beverages market size in South India is around
Rs. 1,500 crores with an annual growth rate of 30 % to 50%. Major market share is with
MNCs. As the market size is improving, there exist an opportunity for local players to
dominate in rural as well as urban markets.
Now we days soft drinks industry growing 6% to 7% annually, In India there are 110 units of
top soft drink industry is working. In that 1,25,000 peoples are working. Cola and non-cola
are the main two distinct segment made in the market. The 62% of share claimed by cola
segment, in non-cola includes soda, lime, and drinks with orange and mango flavors.
The consumption of soft drinks per capita in India 5 to 6 bottles compare to Sri Lanka 21,
Thailand 73.

Table no. 2.1 Market Growth Rate:


Year

Percentage

2001-02 to 2006-07

6.5%

2006-07 to 2009-10

5.4%
4

2009-10 to 2014-15

3.5%

Sensitivity coefficient

5.2%

2.2 Company profile


Shankar group of companies has come into inception in the year 1987 by Mr. Sathya
Shankar. Today it spread across into different areas like automobile, finance, organic
forming, food processing and packaged food products. The company ISO certified (ISO
22000) for food safety management system.
Shankar group of companies introduce MEGA FRUIT PROCESSING PVT LTD, in the year
2002. for manufacturing PET soda and Aerated water started under the brand of BINDU
and has established itself as a popular brand in Karnataka and neighboring states like Kerala,
Tamilnadu, Andhrapradesh, Maharashtra and Orissa and also they exporting the products to
US, UK and Myanmar. Presently the unit is producing soft drinks such as Jeera masala, club
soda, Orange, lemon, cola, Ginger and fresh fruit juice such as Mango and Apple fizzy under
the brand name of BINDU. Jeera masala is getting popular everywhere in the market.

2.2.1 Promoter
Smt. Ranjitha Shankar a young entrepreneur who has been in the manufacturing field for past
several years with their popular BINDU brand. The factory situated at narimogeru village
puttur taluk of dakshina Kannada district Karnataka.

2.2.2 Vision and Mission


Vision

To stand for product innovation.

To stand for sustainable growth.

To produce high quality product with due care and concern for the
environment.

To popularizing their brand name national and international level.

Mission statement
The pure taste of happiness

At all times we are dedicated to work in a quality environment, working with quality people
and offering quality products, thus ensuring growth earnings to our staff, principles and our
customer.
Our mission is to build a good reputation for soft drinks with quality and to become a
successful company in India.

2.2.3 Expansion project


Soft drink market is expanding in rural market and also in urban market drastically which is
somewhere 20-25%. To meet this demand Megha Bottling decided to expand the existing
capacity to 7200 bottles per hr. The additional per day capacity of the unit will be 150000c/s
per month. This line will be state of the art technology which includes PET bottle machine
from SIDEL India, a unit of SIDEL France, and processing and filling line imported from
Filler Tech Company, Taiwan. The plant is well sophisticated to take care of quality of soft
drinks at its highest level with maximum yield of 95% as per design capacity.

2.2.4 Quality policy


The company makes a proper quality control measure about the raw material what they using
for production. This is to provide quality and safe products and entire customers for
achieving total satisfaction.
In 2001 SG group became third company in Karnataka to receive BSI license (The Bureau
OF Indian Standards) and it also holds ISO 9001-2000 certification and HACCP (Hazardous
activities for critical control point) based on the quality system practices. We strictly adhere
to all statutory norms and endeavors to maintain the environmental clean.

2.2.5 Manufacturing process


1. Prepare sugar syrup into the mixing tank.
2. Pasteurize juice concentrate / fruit pulp.
3. Weigh all ingredients and mix into the tank.
4. Add purified water to make up the final volume.
5. Measure and adjust quality Parameters of syrups.
6. Processed beverage after carbonation then fed to filling machine where it will be
filled in PET bottles are then immediately passed through warmer tunnels to bring
them to ambient temperature. Then labeling and coding and pacing are done.
6

Table no. 2.2 Raw materials:


1. Water

6. Colors

2. Sugar

7. Stabilizers

3. Acidulates

8. Fruit juice concentrate

4. Preservatives

9. Carbon dioxide

5. Flavors

Chart no. 2.1 Process flow diagram

Treated water

Sugar syrup

Flavor and ingredient mixing

Ready syrup tank

Carbonation and beverage


processing

PET bottle Rinser/Filler/Capper

Warmer tunnel

Labeling unit

Carton packaging shrink


wrapper

Fruit juice conc. pasteurized

Description:
Water and syrup taken in water and syrup tank at constant level and pressure both these tanks
are at same pressure. From both the tank mix level is opened, water and syrup at required
proportion comes in a mix tank. In the syrup pipe there is a micrometer arrangement to adjust
proposition.
From the mix tank, when required level reached, mix beverage is taken by transfer pump to
pump to deaerator tank. In deaerator tank by purging co2 deaeration and pre-carbonation
takes place.
From the deaerator tank mixed beverage is taken by high pressure pump and pump through
plate heat exchanger to the carbonation tank. In the carbonation tank required co 2 pressure is
maintained and fine mist of beverage come in the tank during this time co2 is mixed with the
beverage and required gas volume is obtained.
All this units will be inter-connected by appropriate pipelines and pumps, electrical controls.
There will be float ball type of automatic liquid level controllers, controlling individual pump
for the entire tank.

2.2.6 Beverage filing and packing system


The machine will have 30 washing nozzles working under positive pump pressure of demineralized water. The machine does not include centrifugal pump for de-mineralized water.
It would require supplying water at about 40 PSI at a rate of 1200 liters per hour.
The bottles from the air conveyer will be taken by the star wheel with neck guide system the
gripping fingers will hold the bottles by neck and necessary guide bars will invert the bottles
upside down by 180 degree. The duly inverted bottles will receive water from the washing
nozzles on rear of the machine.
The duly inverted bottles will receive water from the washing nozzles on rear of the machine.
The washing will operate from 90 to180 degree rotation of the washing machine. Zero degree
position in front of operator. 180 to 270 degree will be drain time and from 270 to 360 bottles
will be transferred on out feed conveyor. The drained water can be accumulated and allowed
to drain in the tank and recycling after re processing (if required).
The machine will be fully constructed in stainless steel above the table to level. The bottle
handling parts will be of nylon. The appropriate guards will be provided to prevent water
splashing.

2.2.7 Infrastructure facilities


A good infrastructure facility plays an important role in the growth and smooth flow of work
environment of the company.

Company has double storied building 5000sq ft area and warehouse of 300sq ft.

Process requires both hardware and soft ware. It has installed all machinery such as
1. Filtration plant.
2. Ultra violet water disinfection system.
3. Ultra safe technology.
4. Chemical dozer.
5. Ozone generator
6. Micron filter
7. Well equipped laboratory

2.2.8 Utility requirement


Power requirement:
The unit requires total approximate load of 250 HP, which falls HT category. A 250 KVA
electrical distribution transformer with all accessories and outdoor fittings, control panel
boards, cables, starters, switches etc., are proposed.
Since the power input and consistent availability is very curial for the plant operation and the
viability, the company has decided to install diesel generator units for adequate capacity, for
power generation as additional sources.

Table no. 2.3 Power requirement:


SI.NO.

Particulars

Power Req.(HP)

1.

Preparatory section

50

2.

Beverage processing and filling

50

3.

Others (boiler, chilling plant, bore well, ETP, air

100

compressor, cooling tower etc )


Total

250

Water requirement:
Water is required for generating steam, cooling purposes and also for other domestic
requirements. The same can be met from bore wells to be dug in the premises. Total water
requirement is projected as approximately 175 m3 / Day. This includes the feed water
requirement for boiler, DM water plant, cooling water circuit, etc. part of this water quantity
can be re-circulated.

Table no. 2.4 Total water requirement for proposed project:

Sl. no

Particulars

Water Req.

1.

Processing plant

150 m3 / Day

2.

General consumption

25 m3 / Day

Solid waste and effluents:


No harmful effluents are generated in the process. The unit shall make suitable arrangements
for treatment / disposal of spillages of pulps, wash water, etc. other dry solid waste will sold
as fuel for boiler to SSI units in the locality, Liquid effluents will be treated and partly
recycled and also used for irrigating the trees and gardening proposed to be developed in the
plot.
Total steam requirement for the operation of the plant is 600 kg/hr steam at 1000c, and at
pressure 10.54 kg/sq.cm
Air composer, cap 105 cfm at 7.5 kg sq cm with motors and standard fittings.

2.2.9 Product profile


The major product of the company is packaged soft drinks. SG group selected its brand name
from Sanskrit language Bindu which means pure. It maintains a cultural of uniform price
to the customers and it provides uniform quality and quantity of soft drinks to its customers.
Bindu brand soft drinks

Fizz jeera.

Zing ginger.

Sip On (mango drink, fruit punch, apple, mango milk shake flavors).
10

Fruzon apple.

Zivo (premium water, soda).

Bindu water.

Sip On (pink guava drink).

Profitable products:
Because of the quality of the product the customers are more interest to buy unique products
like Fizz jeera and fruzon apple. This contains more demand in the market. By seeing this
demand coca-cola company came to buy the product. But they didnt sell their product. This
demand only because of the quality of the product they never go for the more promotion
activity.

2.2.10 Work flow model


Chart no. 2.2
Raw materials

Quality control department

Production area

Quality checking department

Analysis

Store department

It indicating or briefly describes how the work carried out in the company Megha fruit
processing Pvt ltd. Fallows its own procedure to carry out its functions. The company receive
raw material from own well and other materials from suppliers. The sample of raw material is
tested in quality control department for approval. After the approval, it goes into production
department where the actual production takes place. After completion of the production, a
11

sample of the products is tested in the quality control department. After the approval the
production is stored in the stores department for dispatch.

2.2.11 Distributer channel of Bindu brand soft drinks


Chart no. 2.3
Producer

Distributor

Retailer

End-user

The company from the producer they sending the product to their regional office which is
located in city area from that the distributers will purchasing the stocks and distributing to the
area wise retailer and ultimately the retailer selling their product to the ultimate consumer.
The company from the producer they sending the product to their regional office which is
located in city area from that the distributers will purchasing the stocks and distributing to the
area wise retailer and ultimately the retailer selling their product to the ultimate consumer.

2.2.12 Megha marketing


It was set up in 2006 as a partnership firm. The Firm handles all the marketing activities of
Megha Fruit Processing Pvt Ltd. Narimogaru village, Puttur, which is a leading manufacturer
of packaged drinking water, soft drinks and fruit juices the firm handles all marketing
activities for SG products by purchasing finished goods of SG such as Bindu Packaged
drinking water, Bindu Soft drinks, Sipon Fruit Juices.
Key persons in the organization:
The Partners of the firm Smt. Suma S. Bhat and Smt. Lalitha S. Bhat. Both of the partners
have enough experience in marketing of the products of Shankars group.

12

2.2.13 Distribution Network


The management has over the years built and leveraged its distribution network by
diversifying into complimentary business segments. The firm will purchase finished goods
from SG and sells to Distributors through Megha Marketing depots at various places as
detailed below.
Table no.2.5 presently the distribution network is serviced through Megha Marketing
depots:
1. Bangalore

9. Bellary

17. Sangareddy(Telangana)

2. Hubli

10. Bangalore K.R.Puram

18. Vijayawada(Andhra Pradesh)

3. Gulbarga

11. Bijapur

19. Kothagudem(Telangana)

4. Pune(Maharashtra)

12. Davanagere

20. Nalgonda(Telangana)

5. Chittoor(Andhra Pradesh)

13. Belgaum

21. Calicut(Kerala)

6. Kasargod(Kerala)

14. Hyderabad(Telangana)

22. Goa

7. Mangalore.

15. Mahabubnagar(Telangana)

23. Kolhapur(Maharashtra)

8.Mysore

16. Ongole(Andhra Pradesh)

Currently the firm has a strong and growing distribution network comprising of:
a)

1500 distributors in the state of Karnataka,

b)

10 super stockists in the state of Kerala,

c)

40 super stockists in the state of Andhra Pradesh,

d)

9 super stockists in the state of Tamilnadu,

e)

8 super stockists in the state of Maharashtra

Strong distribution network established over the years by diversification of the Group
companies into complimentary business segments like Ready to drink fruit juices, ready to
eat Packaged Food, Packaged drinking water and aerated drinks.

13

Distributors in Dakshina Kannada


1. Shri Shanthadurga enterprises, Moodabidre
2. S k store, Mangalore
3. Sridurga, Mangalore
4. Adhi enterprises, Mangalore
5. Adithya enterprises, Bantwal
6. cool & fresh, Sullia
7. Sri veera maruthi enterprises, Mulki
8. Bharath traders, Puttur
9. Kulyady enterprises, Mudubidri
10. Nandavara agencies, Kalladka
11. Navami walkin mart Moodabidre
12. Padmashree enterprises Sullia
13. Ramambha prasad traders, Bajpe
14. Sharadha stores, Belthangady
15. Sridhar bhat Subramanya

2.2.14 Man Power & Human resources


The effective of Man power will be urban sales officer with adequate skills, with qualitative
educational support. In this regard, we are upgrading all the concerned Areas Sales Managers
to this level of requirements. Area Sales Manager is vital force /leader to harness urban
potential.
In this regard, we will be giving regular training programmes for follow ups and performance
appraisals. Already a separate sales Office is opened in the heart of Bangalore to service
them, so that they will be more effective. The company is also offering various incentive
plans to its sales managers and officers for achieving target turnover.

Market Field Force:


Presently, there are 350 numbers of employees are in the marketing department. It consists of
2 Zonal Sales Manager 40 Regional sales Managers, 75 Area Sales Managers, 105 Sales
Officers and 128 TSIs spread across Karnataka, Kerala, Andhra Pradesh, and Tamilnadu,
Orissa, Goa and Parts of Maharashtra

14

2.2.15 Value chain

Distributers
Megha distributers those business partners supply products with good services. At a
minimum, all authorized and direct suppliers must follow with certain strategy
including those concerning freedom of association and collective bargaining,
discrimination, wages and benefits working overtime, health and safety and
environmental practices. All our new agreements with distributers require fulfillment
with our supplier guiding principle.

Consumer
Our customer includes large chain of retailers and restaurants as well as small
independent businesses. Weather customer are large or small, we work them with to
create mutual benefit. Helping them to grow their businesses it helps to grow ours too.
We serve our customer through account management teams, providing services and
support tailored to their needs.

Factors influencing while assigning areas to distributors:


1. An average number of outlets the salesman effectively works on. A salesman can
handle 50 outlets on an average successfully in a day.
2. Depending on frequently of a particular route. The distributor follow three types of
frequencies they are:

Daily

Alternative days

Once a week (only fallowed on the up country area)

Working of distributors:
The company gives target to the distributors. With help of sales executives they can break up
their target into

Daily

Weekly

Brand wise

Sales wise

From these the distributer tries to focus on weaker brands and tries to maximum number of
these to mix up their products with highly saleable products.

15

For Ex. The sale of Sip On is considered low saleable product then distributor adds more
number of Sip On products in a mixed cases.

Distributors route plan:


Distributor maintain two kinds of routes

Potential route

Non potential route

In potential rout the vehicle goes daily but in non potential rout the vehicle goes once in a
week
In the potential rout the distributors gets maximum business as the number of outlets will be
more and also when vehicle goes daily to meet the market demand.
Ex. If a distributor has 300 outlets in his area he has plan accordingly as per his rout wherein
he has to visit 50outlets per route.
Company Support to the distributor:
The company supports the distributors in terms of incentives during the off season. It is just
plan to retain the distributor and maintain good relation between them.

2.2.16 Marketing strategy


Competition from organized sector is increasing but local and small units have distinct
advantages in terms of cheaper labor, less overheads and transportation costs, longer shelf
life, quick access to market and cost. Marketing strategy of the company is focused on the
following.

Identifying the customers

Financial capability of the consumer

Quality required by the customer

Consistency in placing order or annual requirement

Quality consciousness of the customer

Size of packing asked by the customer

Mutual understanding with the customer

Payment terms and conditions

Minimum order quantity

Maximum order quantity


16

The increase in the per capita income, availability of modern technology, increase in level of
literacy, development of infrastructure like transport, communication, change in tastes and
preferences of consumers in urban as well as rural areas, phenomenal change in packaging
are factors in favor of increasing demand for the soft drinks in the market.

2.2.17 Working capital facility


In any kind of business, for the growth of trading activities working capital facility plays a
main part in every situation. This facility is mainly for fund management i.e. widening
marketing network, purchasing bulk quantity of goods at lower cost. That can store wider
product basket, substantial holding of stocks, etc. The business running for long period of
time working capital is main key to working capital is facilitate a smooth workflows of works
in organization.
Increase in marketing network/outlets,
Wider product basket,
Procure goods against payments which provide smooth flow of operation.
To have sufficient stocks of all types of products
With assured liquidity we can take bulk orders in large quantity
With assured liquidity we can take order of supplies of continuous product
Availability of liquidity makes better asset position in the market among other
competing product.

2.2.18 SWOT Analysis


SWOT analysis is a tool for evaluating, auditing the organizational environment. It is the first
stage of planning. SWOT analysis is an effective way of analyzing the organizational
potential by identifying the strength, weakness and to examine the opportunity and threat
which may affect the organization carry out an analysis using SWOT tool will be enough to
reveal the change which can be implemented easily and gain result.

Strengths:

Good marketing network: the company may have good market network the final
goods is supplied to a customer through a chain between manufacturer, distributers
and retailer.

17

Well equipped lab: the lab is well equipped the final products are testes in the lab
according to ISI standards.

Qualified man power is available to operate the highly sophisticated plant and
machinery.

Good quality: it maintains quality of the product according to ISI & BIS standard
mark. The sample of the product is tested in every 6 month inspection made by the ISI
representatives. Representatives will be coming from their office, or it can send a
sample. Which is situated in Bangalore, the sample will be drawn from factory either
from production unit or from marketing place.

Location advantage: the plant is located in rural area so there will be less maintenance
charges.

Promoters sound financial position.

Weakness:

The firm situated in rural area it requires more transportation cost. For buying raw
materials requires more time and transfer of raw material to the go down.

Lack of skilled personnel. They are less number of skilled workers are available as
the firm is situated in rural area.

It incurs the high production cost because it spends more prices on buying of raw
material and requires huge transportation cost.

Less advertising and sales promotional activities. The company gives advertising in
local news paper and local channels only on occasional basis.

Under utilization of labour resources.

Unaware of the product and its company name in some cities.

Unaware of quality standard of the product by people.

Opportunity:

Expansion of business. It has good opportunity to expand its business in future all
over India.

It has opportunity to export its product to abroad.

Collaboration with other company.

Opportunity to enter global market.

Opportunity to add more products to the existing product line.

18

Opportunity to create new image in the mind of customer by providing quality


product.

Opportunity to set-up its plant in other cities also.

Opportunity to gain major share in market.

Labour is available in lower cost.

Threats:

Threats from supplier by purchasing high price of raw materials purchased.

Competition from MNCs. Through advertising and other sales promotional activities,
increasing price quality standard of the product.

High competition from local companies. By charging lower price for their product in
the local market.

2.2.19 Achievements
Expansion of product movement to whole of South India, including Maharastra and some
parts of Orissa and Andaman & Nicobar Islands in the last two years.
Exported through Anil and Company, Mumbai to the parts of USA, UK & Dubai of about
21KL of Mango Fruit Juice during the year 2013-14.
Started own Tetra Pak beverage producing unit during the year 2012-13 at Narimogaru
Village with an installed capacity of 3.6KL/hr

2.2.20 Future plans


The Firm has devised a strategy to penetrate into larger markets in Western Indian States as
well as Urban markets across markets. At the same time the Shankar Group is also reengineering its branding strategies so as to make the products have greater consumer
attraction even in the face of stiff competition and thereby place the products in a high league
in lucrative segments.
The firm is getting orders for supply of SG Products to urban markets like Big Bazaar, More,
Total, Star bazaar, Heritage, Nilgiris etc in big cities like Bangalore, Mangalore and Hubli.
In the past year, our firm has been able to successfully place the products across supermarket
chains like More, Spar etc The firm has also introduced attractive schemes to dealers and
distributors to enable them to derive good profits from the products and thereby adequate
incentives are given to them to push the products in the market at more aggressive pace.

19

2.2.21 Financial Statement Analysis


Financial analysis is a process of identifying the financial strength and weakness of the firm
clearly establishing the relationship between the item of the balance sheet and profit and loss
accounts. Financial analysis can be undertaken by the management of the firm or parties
outside the item namely creditors, owners, investors and others.
Table no. 2.6 Table showing Balance sheet of Megha fruit processing Pvt ltd.
Particulars

Dec-15

Dec-14

Dec-13

1. Equity and Liabilities


1. Shareholders fund
a. share capital
b. reserves and surpluses
2. Share application money
pending allotment

8,06,00,600

6,56,00,600

6,56,00,600

16,57,39,178

12,38,63,714

9,82,43,179

1,01,53,391

--

--

3. Non-current liabilities
a. Long term barrowings

13,04,33,633

14,59,56,506

14,18,53,064

a. Short term barrowings

22,03,79,849

23,16,38,084

24,77,70,860

b. Trade payable

7,15,57,165

11,45,79,331

7,05,91,851

c. Other current liabilities 96,92,643

55,14,096

49,68,368

d. Short term provisions

57,61,945

54,07,801

26,30,800

69,43,18,404

69,25,60,132

63,16,58,722

Gross block

34,49,51,749

32,33,40,162

27,77,40,200

Depreciation

14,50,61,798

9,98,55,406

6,74,97,928

19,98,89,951

22,34,84,756

21,02,42,271

4. Current liabilities

Total
2. Assets
1. Non-current assets
a. Fixed assets

b. Capital work in progress

--

c. Non-current investment

--

- -

--

17,45,549

17,45,549

38,02,089

--

--

a. Current investment

30,20,000

24,20,000

18,00,000

b. Inventories

33,76,08,854

32,18,22,105

26,92,78,740

c. Trade receivables

11,38,12,188

10,81,97,059

10,27,99,376

d. Cash and cash equalent

1,98,25,897

1,65,37,110

1,55,47,709

d. Deffered tax assets


2. Current assets

20

e. Short term loans


Total

1,63,59,424

1,83,53,553

3,02,45,077

69,43,18,404

69,25,60,132

63,16,58,722

Ratio analysis
Ratios are measurement of business results. It is a simple expression of one figure in
comparison with another figure studied over several accounting year or period. Ratio
indicates the trend of a firms financial planning and growth. They also reveal the enter
relationship between the by which ratio worked out. The ratios can be classified in the
following kinds.
1. Current Ratio.
2. Cash Ratio.
3. Quick/Liquid Ratio.
Objective of ratio analysis:
Financial ratio analysis is the calculation and comparison of main indicators ratio which are
derived from the information given in a companys financial statements. It involves method
of calculating and interpreting financial ratio in order to access the firms performance and
status. The objective of ratio analysis is the comparative measurement of financial data to
facilitate wise investment, credit and management decision.
Financial Ratios of company:
Financial ratio indicates about financial position of the company. A company is deemed to be
financial sound, if it is position to carry on its business smoothly and meet its entire
obligation both long term as well as short term without strain. Thus company financial
position has to be judged from two sides as long term as well as short term views.

1. Current Ratio:
This is an indicator of firms commitment to meet its short term liabilities. Higher the ratio,
better the coverage, 2:1 ratio is treated as standard ratio. This ratio is called as solvency ratio.

Current Assets
Current Ratio =

Current Liabilities

21

Table no. 2.7. Table showing calculation of Current Ratio:


Year

Current Assets
(Rs in Lakhs)

Current Liabilities
(Rs in Lakhs)

Ratio

2013

4,196.69

3,259.59

1.287

2014

4,673.29

3,571.38

1.308

2015

4,846.24

3,073.89

1.576

Interpretation:
The table shows that ratio is not good in all the years. Compared to the years ratio in 2015 is
high. And other last two year ratio was fluctuating, but company came up to 1.576 in 2015
and reached high. It is a sign of business taking better financial stability this indicates that
firms commitment to meet its short term liabilities was good.

2. Cash Ratio:
This is the rigorous and conservative test of a firm liquidity position than other ratio

Cash +Bank balance


Current Liabilities

Cash Ratio =

Table no. 2.8 Table showing Calculation of Cash ratio:


Year

Cash +Bank balance


(Rs in Lakhs)

Current Liabilities
(Rs in Lakhs)

Ratio

2013

155.47

3,259.59

0.048

2014

165.37

3,571.38

0.046

2015

198.25

3,073.89

0.064

Interpretation:
Firm cash ratio is increased from 0.046 to 0.064 in 2015 which means that company is getting
high value along with its liquidity.

22

3. Quick/ Acid Test/ Liquid Ratio:


Liquid Ratio indication of availability of quick asset to honor its immediate claims. The
standard ratio is 1:1 Quick Ratio is calculated as follows
Total Current Asset - Inventories
Quick Ratio =

Total Current Liabilities

Table no.2.9 Table showing Calculation of Quick Ratio:


Year

Total Current Asset


Inventories (Rs in Lakhs)

2013

Ratio

1,503.16

Total Current
Liabilities
(Rs in Lakhs)
3,259.59

2014

1,455.07

3,571.38

0.41

2015

1,530.16

3,073.89

0.50

0.46

Interpretation:
The quick ratio of megha fruit processing Pvt ltd is not good enough in the 2 years when
compared to the conventional standard 1:1from the above table it is evident that in all the 3
years the acid ratio of megha fruit processing Pvt ltd was above the standard ratio i.e. 1:1. In
the year 2015 the companys quick ratio was 0.50 which indicates high liquidity position
compare to previous two years. This is because the liability of the company is increasing at a
higher rate than that of its asset.

23

Chapter-3

THEORETICAL BACKGROUND OF THE STUDY


It is a path through which goods and services pass through from the seller to the consumer or
payments from those products travel from the consumer to the seller. A distribution channel
can be as shorting as a direct transaction from the producer to the consumer, or may include
some unified mediators beside the way such as wholesaler, distributers, agents and retailers.
Each mediator receives the thing at one pricing point and moves into the next higher pricing
point until it reaches the final buyer. Product does not reach the consumer before first going
through a channel involving the farmer. Exporter, importer, distributor and the retailer also
called as channel of distribution.

3.1 Channels of distribution


Producing and offering a good product or service to consumers at a reasonable price is not the
whole story the third p of traditional marketing mix represents place. Place decision
concern marketing channel or distribution channel arrangements. It is crucial to ensure
availability of goods and services to customers when they want, at places they want, and in
the right quantities. This is an integral part of satisfaction delivery to customers and
marketing channel arrangements can have theatrical suggestion for competition in a product
market.

3.2 Types of channels


Many different distribution path alternatives have been developed because a certain channel
type is appropriate for one product but may not be suitable for others various channel types
may be classified generally as channels used for consumer products or industrial products.

These channels of distribution are broadly divided into four types:


1. Producer-Customer:
Under this method the producer sells his products directly to the final consumers. In
this kind of direct selling are commonly uses in the case of industrial useable products
i.e. marketing of machines, fabricating parts, equipments, operating supplies and
industrial raw materials.

24

2. Producer-Retailer-Customer:
In this type of distribution channel the products will be supply from producer to
retailers and retailer makes these products accessible to ultimate consumers. Large
stores, supermarket and chain store market prefer to buy large quantity of products
from the manufacturers.

3. Producer-Wholesaler-Retailer-Consumer:
It is a tradition way distribution channel. It has quit common among consumer
product companies since long. In between producer and consumer there are two type
intermediaries are working those are wholesaler and retailer. The goods pass from
manufacturer to wholesaler, then to retailers and finally it reaches to the ultimate
consumer. This channel mainly working for the producers sell their product to
millions of consumers.

4. Producer- Agent- Wholesalers-Retailer-Consumer:


Under this channel the manufacturer or producer sells his goods through his agent to
the wholesalers. The wholesalers sell the goods to the retailers and the retailers sell it
to the ultimate consumer. This kind of channel mainly fallowed by producer who
cant afford to have their own sales force. In this channel manufactures of single line
products were mainly moveable for example textiles and groceries are sold through
this channel.
Chart no. 3.1 Chart of Distribution channel:
Producer

Consumer

Producer

Retailer

Producer

Producer

3.3
3.3 Chan

Agent

Consumer

Wholesaler

Retailer

Consumer

Wholesaler

Retailer

Consumer

25

3.3 Channel functions


Most of the producers do not sell their products directly to the ultimate consumer. In between
the final consumer and the producer there are channel members performing a Varity of
function. Single members of channel may perform the following functions.

Channel member create utility:


Distribution channel creates time, place and possession utility. Time utility means
making the products available to customer when they want to purchase. They create
place utility making products available in proper location where customer desires to buy
the products. Possession utility means customer having access to obtain and have the
right to use and have the right to use or store for future use.

Channel member facilitate exchange efficiency:


Channel members offer exchange efficiencies which helps to reduce the exchange costs
by providing certain functions or services. For example, when three customers seek to
buy products from the producers. If there is no middleman involved, the total transaction
with three customers will be twelve. If these four producers sell to one reseller, the total
transactions for producers will come down to four and in turn the reseller will handle
three transactions with customer.

Channel members may reduce discrepancies and separations:


The customer will locate far from the producer and customers may want different
product assortment and quantity of producers produce. Customer may not much clear
about their product in this case for product choices channel members helps to adjust
these discrepancies.

Other functions:
Distribution channel managing the financial risk by financing the goods for moving the
product in market and also sometimes extend the credit facility to next level operation and
consumers as well as handle personnel selling by informing and recommending the
product to consumer.

26

3.4 Objectives of channel


A marketing channel objectives aim at what the company seeks to accomplish through
marketing channels some of the objectives are

Expediency to customers.

Helpful to targeting market coverage.

Cost-effective distribution.

The objectives may relates to the nature of the product such as custom made machinery,
perishable nature of product, expensive and bulky items etc. some of the major factors that
affect objectives are

End customer:
This may mean considering the geographical locations of consumers and their
preference to buy locally or their implantation to feel more at ease going to a
particular type of store such as retailer store capable of providing the much needed
after sales service. Consumer may favor buying from large retail stores. Decision with
regarding to suitable marketing channel would depend on marketing research on
buyer behavior patterns.

Product characteristics:
The soft drinks are one of the perishable products. This has implication of storage and
transportation of the product for that they need to short the marketing channel. Highly
complex products may need personal contact between the producer and the buyer
such as installation of high technology machines.

Company factor:
Available company resources are an important consideration to make the product
available where customers normally shop for the product category, if the available
finance are insufficient, the company cannot afford maintain its own sales force and
will use wholesaler instead. Companies produce seasonal products will use a
distributors route

27

Competition:
If competing producers already have exclusive deals with certain intermediaries then
the company has to look for alternative marketing channels with desired market
presence and penetration.

Product life cycle stages:


Distribution decision needs to be modified keeping in view the PLC stage of a product.
As a product passes through different PLC stages, it attracts different adopter groups.
Decision on distribution should take into consideration the market growth rate and the
value addition by intermediaries.

3.5 Intensity of market coverage


A company must determine the distribution reporting strength a product should get what
number and kinds of channel in which the product will be sold. This will be depends on the
nature of product, target market and availability of other competing products. Three major
coverage strategies include are

Intensive distribution:
A company uses available distribution outlets for making its product available to
consumers this system does not offer any control on distribution outlets. Soft drinks
are low cost convenience products. These products are used routinely and on an
ongoing basis and require no post sale services. To meet consumer demand
efficiently, intensive distribution is necessary and companies use all available
distribution channels that offer deep market penetration in every geographic area.

Selective distribution:
Companies use selective distribution, which means for distribute the products more
than and less than all available outlets in the market area. This offers some degree of
control at a relatively less cost than intensive distribution high involvement products
such as consumer durable items that include TV, washing machine, refrigerators,
branded clothing and sportswear etc., use selective distribution. These products are
frequently purchased are more expensive than convenience products.

28

Exclusive distribution:
This kind of distribution using for one or very limited few outlets. Exclusive
distribution offers producer tighter image control. The producer can also maintain
control over dealers sales and services activities. It is called exclusive because it
involves exclusive dealing arrangement and often includes exclusive territorial
agreements and the intermediary does not handle any other competitors products.

3.6 Evaluation of channel alternatives


In making a decision about channel alternatives, producers evaluation criteria is generally
based on some combination of the following factors

Product characteristics.

Buyer behavior and location.

Severity of completion cost effectiveness and channel efficiency.

Degree of beloved manages on intermediaries.

Adaptability to dynamic market conditions.

3.7 Channel selection and Training


After determining the most appropriate channel alternatives, the producer selects the most
qualified parties and arranges for their training. In case of exclusive dealerships and
franchises where personal contact with customers and services delivery are important,
company appointed dealers play an important role. They practically become the company for
the customers and any negative impressions may severely damage company image and
reputation. Producer must carefully outline training programmes for dealers. They have to be
competent to provide excellent services to customers. The purpose of imparting training is to
sharpen dealers knowledge and selling skills to better serve and satisfy customers.

3.8 Performance evaluation of intermediaries


Producers must periodically evaluate performance of dealers against laid down and agreed
upon parameters. The evaluation criteria differ across industries and form one company to
another in the same industry companies may use a set of criteria that may include some
combination of factors with differing weight given to each element in order of its importance,
such as achievement of sales target, average inventory maintained, performing promotional
activities, customer services and attending training programmes etc.

29

3.9 Channel terms and conditions


The producer stipulates terms and condition and responsibilities of channel partners to
develop better mutual understanding and usually include price policy and trade margins,
payments terms and territorial demarcation, guarantee and returns policy and mutual
responsibilities etc.

Price policy and trade margins:


It should be fair and require manufactures to establish a price list, trade margins and
allowances. Intermediarys margins should be sufficient enough so they can earn a
reasonable margin for their efforts and high return on investment.

Payment terms:
It includes any discounts on quantity and early payments, this may also include
guarantees producer offers against defective goods or breakages during the transit or
price declines and producer policy on taking back date expired products

30

Chapter-4

DATA ANALYSIS AND INTERPRETATION


Data analysis involves analysis of the summarized data obtained by tabulating the collected
data and thereby processing it to give a summarized output.
This study was organized over a period of ten weeks out of which four weeks were dedicated
to data collection and analysis, the data is mainly collected from distributors of Bindu
products in Mangalore and also from the retailers of puttur. The research was purely
organized on the basis of questionnaire method.
In this research the collected data entered into Microsoft Excel to derive charts and graphs
for easier analysis and understanding.
The analysis of the data collected from the respondents questionnaire contained questions
pertaining to the following areas
Personal information.
Quality of service received.

Order size of distributors and retailers

Quality of work performed.

Level of comfort, received by distributors and retailers.

Customer service advisors courtesy towards the distributors and retailers.

Satisfactory level of the distributors and retailers about profit margin and marketing
efforts.

Relationship between distributors and retailers.

31

Data collected from the Megha Distributors Mangalore


Table no. 4.1
Table showing Distributers are association (contact) with MEGHA FRUIT
PROCESSING PVT LTD.

years

Frequency

Percent

Cumulative percent

Less than 1 year

28%

28%

1-3 year

44%

72%

3-5 year

28%

100%

Chart no 4.1
Chart showing Distributers are association (contact) with MEGHA FRUIT
PROCESSING PVT LTD.

3-5 year, 2
Less than 1 year, 2

1-3 year, 3

Analysis & interpretation:


The above chart says that out of 7 Distributors in that, 2 of them are less than 1 year, 3 of
them are 1-3 year and 2 of them are 3-5 years they are associated with the Megha Company.
It shows that the distributors taken their own market for the product. And 5 of them are
getting more experience by selling of Bindu product.

32

Table no.4.2
Table showing distributors annual order size
Order size

Frequency

Percent

cumulative percent

1,00,000-10,00,000

14

14

10,00,000-20,00,000

29

43

20,00,000-40,00,000

43

86

40,00,000 and above

14

100

Total

100

Chart no 4.2
Chart showing Distributors annual order size

50
43%

45
40
35
29%

30
25
20
14%

15

14%

10
5

0
1,00,000-10,00,000

10,00,000-20,00,000 20,00,000-40,00,000 40,00,000 and above


Frequency

Percent

Interpretation:
From the above chart it is clear that the annual order size of 3 distributors is between the
range of 2000000 -4000000. 2 distributors annual order size is between 1000000-2000000.
Only 1 distributor belongs to 4000000 and also 1 distributor is between 100000-1000000.
The annual order size of the entire distributors combined looks healthy. But given local soft
drinks market, the distributors can still improve a lot.

33

Table no 4.3
Table showing particular feature customer (retailer) is concentrating more while
purchasing BINDU products
frequency

Percent

cumulative frequency

Price

28.66

28.66

Taste

28.66

57.32

Quality

28.66

85.98

Advertisement

14.02

100

Total

100

Chart no. 4.3


Chart showing particular feature customer (retailer) is concentrating more while
purchasing BINDU products

35
28.66%

30

28.66%

28.66%

25
20
14.02%

15
10
5

0
Price

Taste

Quality

Frequency

Advertisement

Percent

Interpretation:
The above chart says that out of 7 distributors. 2 of them chosen on the base of taste, 2of
them on the base of taste and 2 of them on the base of quality and only 1 distributor chosen
advertisement.
It can be said that customer chosen product from the distributors on most based on price, taste
quality but they customers not much influenced from the advertisement.

34

Table no 4.4
Table showing Distributors average monthly sales target achievable.
Frequency

Percent

Cumulative percent

100%

14

14

100-80%

43

57

80-50%

43

100

Below 50%

--

--

--

Total

100

Chart no. 4.4


Chart showing Distributors average monthly sales target achievable.

100%
1

80-50%
3

100-80%
3

Interpretation:
The above chart shows that out of 7 distributors 1 distributor achieved 100% sales target, 3
distributors achieved 100-80% sales target and 3 distributors achieved 80-50% sales target.
It can be said that out of 7 only 1 Distributor are achieving complete sales target in monthly
they giving 100% effort to marketing the product and remaining distributors try to giving
more effort achieving the target but also because of the tuff competition difficult to complete
their target.

35

Table no. 4.5


Table showing the number of sales representatives working with Distributors
Frequency

Percent

Cumulative percent

1-2

57

57

2-5

43

100

more than 5

--

--

--

Total

100

Chart no 4.5
Chart showing the number of sales representatives working with Distributors

3
43%
4
57%

Interpretation:
Above chart showing that how many sales representatives working with distributors in that 12 sales representatives working with 4 distributors and 2-5 sales representatives working with
3 distributors.
It can be said that for effective marketing efforts sales representative play a role while
transacting with the customers.

36

Table no. 4.6


Table showing Distributors opinion regarding MEGHA marketing efforts
Frequency

Percent

Cumulative percent

Very good

28

28

Satisfactory

57

85

Neutral

15

100

Poor

--

--

--

Total

100

Chart no.4.6
Chart showing Distributors opinion regarding MEGHA marketing efforts
57%

60
50
40
28%

30
20

15%

10
2

0
Very good

Satisfactory

Neutral

Frequency

Poor

Percent

Interpretation:
The above chart shows that 2 Distributor was of the opinion that Megha fruit processing Pvt
ltd marketing efforts are very good, 4 of them are satisfactory and 1 of the distributor neutral
in his opinion.
The distributors almost satisfied with the marketing efforts of Megha fruit processing Pvt ltd.
But compared to other companies Megha fruit processing Pvt ltd efforts are weak.

37

Table no. 4.7


Table showing Allowance providing to Distributors for advertisement and promotions
Frequency

Percent

Cumulative percent

Strongly agree

--

--

--

Cant say

44

44

Agree

28

72

Strongly disagree

--

--

72

Disagree

28

100

Total

100

Chart no.4.7
Chart showing that Table showing that allowance providing to Distributors for
advertisement and promotions
50

44%

45
40
35

28%

30

28%

25
20
15
10
3

0
Stongly agree

Can't say

Agree
Frequency

Strongly
disagree

Disagree

Percent

Interpretation:
From the above chart clearly says 2 distributors they agree for getting the allowance and 2
distributors are not satisfied with their allowance. 2 of them are cant say anything about
getting the allowance,
This shows that the company less interest in motivating the distributors to promotion of
Bindu products in the market.

38

Table no.4.8
Table showing level of satisfaction about profit margin provide by MEGHA fruit
processing Pvt ltd
Frequency

Percent

Cumulative percent

Highly satisfied

14

14

Satisfied

72

86

Less satisfied

14

100

Not satisfied

--

--

--

Total

100

Chart no. 4.8


Chart showing level of satisfaction about profit margin provide by MEGHA fruit
processing Pvt ltd
80

72%

70
60
50
40
30
20

14%

10

14%
5

0
Highly satisfied

Satisfied

Less satisfied

Frequency

Not satisfied

percent

Interpretation:
The above chart shows that out of the 7 distributors 1 of them are highly satisfied with the
margin provided by the company, 5 of them are satisfied with the profit margin and 1
distributor are less satisfied with the margin.
It can be clearly say that most of the distributors are satisfied with the margins that are getting
from the company.

39

Table no. 4.9


Table showing Distributors get the product from the company as and when they need
Frequency

Percent

Cumulative percent

Always

86

86

If emergency

--

--

--

Sometimes

14

100

Never

--

--

--

Total

100

Chart no. 4.9


Chart showing Distributors get the product from the company as and when they need
100
86%

90
80
70
60
50
40
30

14%

20
10

0
Always

If emergency
Frequency

Sometimes

Never

Percent

Interpretation:
The above chart shows that out of seven distributors, five distributors say that Megha fruit
processing Pvt ltd was prompt in delivering the shipment. Only one distributor say that
sometimes the company delivers the products.
This means that Megha fruit processing pvt ltd has very swift distribution system which
caters to the distributors needs on-time.

40

Table no. 4.10


Table showing about distributors ordering BINDU products
Frequency

Percent

Cumulative percent

Daily

57

57

Weekly

29

86

Alternative days

14

100

Fortnightly

--

--

--

Monthly

--

--

--

Total

100

Chart no.4.10
Chart showing about distributors ordering BINDU products
57%

60
50
40

29%

30
20
10

14%
4

0
Daily

Weekly

Alternative
Days
Frequency

Fortnightly

Monthly

Percent

Interpretation:
The above chart says that 4 distributors order daily basis and 2 distributors orders on weekly
basis and 1 distributor ordering on alternative days. This data helpful to them for inventory
management for the organization this shows that the distributors have a healthy inventory
turnover. But it also means that the Megha fruit processing pvt ltd has spending lots on
transportation of the product.

41

Table no. 4.11


Table showing credit assistance provide by the company with respect to payment.
Frequency

Percent

Cumulative percent

Weekly

29

29

Cash and carry

71

100

Fortnightly

--

--

--

Monthly

--

--

--

Total

100

Chart no.4.11
Chart showing credit assistance provide by the company with respect to payment.
80

71%

70
60
50
40
29%

30
20
10

0
Weekly

Cash and carry


Frequency

Fortnightly

Monthly

Percent

Interpretation:
The above chat shows that when it comes to credit assistance provided by the company only
2 distributors say that they getting week of time for the payment and remaining 5 distributors
are says they will providing cash and carry system.
It can be said that only some of the distributors getting credit facility rest of them have to pay
on the time of shipment.

42

Table no. 4.12


Table showing company reacts to the response of distributors complaints /feedback
Frequency

Percent

Cumulative percent

Very good

29

29

Satisfactory

71

100

Neutral

--

--

--

Poor

--

--

--

Very poor

--

--

--

Total

100

Chart no 4.12
Chart showing company reacts to the response of Distributors complaints /feedback
80

71%

70
60
50
40
29%

30
20
10

0
Very good

Satisfactory

Neutral

Frequency

Poor

Very poor

Percent

Interpretation:
The above chart shows that, out of 7 distributors, 5 of them satisfied with the response of
Megha fruit processing Pvt ltd with regard their feedback and 2 distributors say that response
was very good. Here it is possible to get a clear picture as to how well the company responds
to their channel members feedback/complaints. But in certain that they make an effort to sort
out problems of distribution.

43

Correlation coefficient between the Distributors opinion regarding


MEGHA marketing efforts, particular feature customer is more
concentrating while purchasing BINDU products.
Calculation of Correlation
Let,
particular feature customer is more concentrating while purchasing BINDU products =X
Distributors opinion regarding MEGHA marketing efforts = Y

Table no. 4.13 table showing calculation of correlation coefficient.


s. no.

x2

y2

xy

16

Total

13

21

14

Then the formula for calculating correlation

r=
r = 0.039
Interpretation:
The correlation coefficient is done by checking the relationship between the Correlation
coefficient of the Distributors opinion regarding MEGHA marketing efforts, particular
feature customer is more concentrating while purchasing BINDU products and overall
comparing this to conditions are positively correlated. Hence distributors making an effort
about marketing are positively achieved by seeing this result.

44

Data collected from retailers of puttur city


Table no. 4.14
Table showing Retailers monthly order size
Frequency

Percent

Cumulative percent

1,000-5,000

16

16

5,000-10,000

14

28

44

10,000-20,000

19

38

82

20,000 and above

18

100

Total

50

100

Chart no. 4.13


Chart showing Retailers monthly order size
38%

40
35
28%

30
25

19

20

16%

15
10

18%

14
9

5
0
1,000-5,000

5,000-10,000

10,000-20,000

Frequency

20,000 and above

Percent

Interpretation:
From the above graph shows, out of the 50 retailers, 18 retailers make an average order of
Bindu products valued between 10,000-20,000 and 9 retailers able to make a order of more
above 20,000 whereas 14 retailers ordering in between the range of 5,000-10,000 and
remaining 8 retailer ordering the product in between 1,000- 5,000. It is observed that majority
of the getting product from the distributor comes in the monthly order size of 10,000-20,00

45

Table no.4.15
Table showing about Retailers ordering BINDU products from the Distributor
Frequency

Percent

Cumulative frequency

Weekly

15

30

30

fortnightly

18

36

66

Monthly

18

84

Alternative Days

16

100

Total

50

100

Chart no.4.14
Chart showing about Retailers ordering BINDU products from the Distributor
40

36%

35

30%

30
25
20

18

18%

16%

15

15
9

10

5
0
Weekly

fortnightly

Monthly

Frequency

Alternative Days

Percent

Interpretation:
From the above chart it is evident that most of the distributors visit the retailers 36% on
fortnightly basis to collect the orders. 15 retailers can give order on weekly basis, 9 retailers
ordering the Bindu product on monthly basis. And remaining 8 retailers ordering the Bindu
product in an alternative day. There is no fixed pattern followed by the distributors when it
comes to visiting the retailers to take orders.

46

Table no. 4.16


Table showing Retailers opinion regarding the earning from BINDU products
compared to other brands
Frequency

Percent

Cumulative percent

High

20

40

40

Low

10

10

Neutral

25

50

100

Total

50

100

Chart no. 4.15


Chart showing Retailers opinion regarding the earning from BINDU products
compared to other brands

High, 20
Neutral, 25

Low, 5

Interpretation:
The chart clearly shows that 40% of the retailers are highly satisfied with margin provided by
the megha fruit processing Pvt ltd. 5% of retailers feel that margin is low and 50% of them
feel that margin neither high nor low.
The distributors give the retailers a margin of 10 %- 15% and also some of the big retailers
like More, Spar and etc for them distributors selling the product with providing 20%-25% of
margin.

47

Table no. 4.17


Table showing Retailers relationship with MEGHA Distributors
Frequency

Percent

Cumulative percent

Very good

12

24

24

Satisfactory

20

40

64

Neutral

18

36

100

Poor

--

--

--

Very poor

--

--

--

Total

50

100

Chart no.4.16
Chart showing Retailers relationship with MEGHA Distributors
45

40%

40

36%

35
30
24%

25

20

18

20
15

12

10
5
0
Very good

Satisfactory

Neutral

Frequency

Poor

Very poor

Percent

Interpretation:
The above chart shows that, out of 50 retailers, 12 of them maintain very good relationship
between the distributors, 20 of the retailers are satisfied with the business with megha
distributors and remaining 18 retailers states that they in neutral. It shows that distributors
will try to encouraging the retailers for marketing Bindu product.

48

Table no. 4.18


Table showing Distributor visiting retailers outlet on the basis of.
Frequency

Percent

Cumulative percent

Daily

12

24

24

Weekly

24

48

72

Fortnightly

14

28

100

Monthly

--

--

--

Total

50

100

Chart no. 4.17


Chart showing Distributor visiting retailers outlet on the basis of.
60
48%

50
40

28%

30

24%

24

20

14

12
10
0
Daily

Weekly

Fortnightly

Frequency

Monthly

Percent

Interpretation:
From the above chart it says that most of the distributors visit the retailers 48% on weekly
basis to collect orders. While other retailers visited by the distributors fortnightly and daily.
There is no fixed pattern followed by the distributors when it comes to visiting the retailers to
take orders. The distributors often visit the retailers weekly but no to all of them.

49

Table no. 4.19


Table showing Retailers get the product from the Distributor as and when they need
Frequency

Percent

Cumulative percent

Always

30

60

60

if emergency

10

20

80

Sometimes

10

20

100

Never

--

--

--

Total

50

100

Chart no. 4.18


Chart showing Retailers get the product from the Distributor as and when they need
70
60%
60
50
40
30
30
20%

20%

20
10

10

10
0
Always

if emergency

Sometimes

Frequency

never

Percent

Interpretation:
The above chart shows, that out of the 50, retailers 30 of them retailers get the product always
and the 10 retailers getting the Bindu products if any emergency like seasonal times they
ordering the product and remaining 10 retailers needs in sometimes. The retailer need the
product when there is more demand and in the time of season the retailers ordering more in
quantity.

50

Table no. 4.20


Table showing Retailers satisfaction with the service provided by the sales
representative of MEGHA Distributor
Frequency

Percent

Cumulative percent

Highly satisfied

30

60

60

Satisfied

15

30

90

Less satisfied

10

100

Not satisfied

--

--

Total

50

100

Chart no.4.19
Chart showing Retailers satisfaction with the service provided by the sales
representative of MEGHA Distributor
70
60%
60
50
40
30

30%

30
20

15
10%

10

0
Highly satisfied

Satisfied

Less satisfied

Frequency

Not satsfied

Percent

Interpretation:
The chart shows that 60% of retailers are highly satisfied with the service provided by the
megha distributor. 30 % of retailers are satisfied and remaining 10% are less satisfied. It
clearly says those major portions of the retailers are highly satisfied with service receiving
from the distributors.

51

Table no. 4.21


Table showing about Distributer taking feedback from the retailers
Frequency

Percent

Cumulative percent

Always

18

18

Sometimes

20

40

58

If emergency

15

30

88

Never

12

100

Total

50

100

Chart no.4.20
Chart showing about Distributer taking feedback from the retailers

45

40%

40
35

30%

30
25
18%

20

20
15

15
10

12%
9
6

5
0
Always

Sometimes

If emergeny

Frequency

Never

Percent

Interpretation:
The above chart indicates that 40% of retailers opinion that their distributor takes feedback in
sometimes, 30% of retailers says that if any emergency distributor will taking the feedback,
from the 9 retailers distributor takes feedback in all times and from the 6 retailers they never
taken the feedback. When it comes to redressing of feedback, the distributors have ensured
that retailers are taken of this is very essential to maintain good relation with retailers.

52

Table no. 4.22


Table showing MEGHA Distributor provides any support schemes (e.g. free pieces,
extended credit, etc) to the Retailers.
Frequency

Percent

Cumulative percent

Always

34

68

68

Sometimes

12

24

90

Never

10

100

Total

50

100

Chart no. 4.21


Chart showing MEGHA Distributor provides any support schemes (e.g. free pieces,
extended credit, etc) to the Retailers.

Never, 5

Sometimes, 12

Always, 34

Interpretation:
The above chart shows that 68% of the retailers responded sayings that distributors provide
always support schemes such as free pieces, 24% of retailers say that sometimes they can get
support schemes from the distributors and 10% retailers cant getting any support schemes.
Most of the distributors are train to push the product by providing support schemes to their
retailers. But retailers not fully satisfied with their schemes.

53

Table no. 4.23


Table showing Distributor provides facilities for storing displacing BINDU products in
Retailers premises.
Frequency

Percent

Cumulative percent

Strongly agree

--

--

---

Can't say

20

40

40

Agree

--

--

--

Strongly disagree

10

20

60

Disagree

20

40

100

Total

50

100

Chart no. 4.22


Chart showing Distributor provides facilities for storing displacing BINDU products in
Retailers premises.
45
40%

40%

40
35
30
25
20

20%

20

20
15
10
10
5
0
Strongly agree

Can't say

Agree
Stronglydisagree
Frequency
Percent

Disagree

Interpretation:
The above table shows that 20% of retailers cant says anything, 40% of the retailers say that
they cant get any this kind of facilities and 20% of them strongly disagree this about
facilities providing about storing and displaying the Bindu products. When it comes to
promoting Bindu products it can be seen that the distributors are not keen on doing so, most
of the distributors no give much importance to that.
54

Table no. 4.24


Table showing Retailers find any defects in BINDU products distributed by Distributor
Frequency

Percent

Cumulative percent

Sometimes

14

14

Can't say

15

30

44

Never

28

56

100

Total

50

100

Always

Chart no. 4.23


Chart showing Retailers find any defects in BINDU products distributed by Distributor
60

56%

50
40
30%
30
20

28

15

14%
7

10
0
Always

Sometimes

Can't say

Frequency

Never

Percent

Interpretation:
The above chart shows that 56% of the retailers said that they did not receive any damaged
shipments from their Megha distributors whereas 30% of retailers cant said anything and
14% of them said that sometimes getting damaged product from the Megha distributors. As
far as damage on arrival of products as concerned. The distributors have ensured that the
consignment isnt damaged when the retailer receives it.

55

Table no. 4.25


Table showing MEGHA distributors response to the given feedback from the Retailers
Frequency

Percent

Cumulative percent

Very good

18

36

36

Satisfactory

27

54

90

Neutral

10

100

Poor

--

--

--

Total

50

100

Chart no. 4.24


Chart showing MEGHA distributors response to the given feedback from the Retailers

60

54%

50
40

36%
27

30
20

18
10%

10

0
Very good

Satisfactory

Neutral

Frequency

Poor

Percent

Interpretation:
The above chart indicates that 36% of the retailers have the opinion that their distributors are
very good it comes to responding towards the feedback of the retailers. 54% of retailers are
satisfied with distributors react. 10% of retailers are feel is neither very good nor satisfactory.
When it comes to redressing complaints, the distributors have ensured that retailers are taken
off. This is very essential to maintain good relationship with retailers.

56

Table no. 4.26


Table showing promotional tools does the Distributor use to promote the BINDU
products
Frequency

Percent

Cumulative percent

Strongly agree

--

--

--

Can't say

17

34

34

Agree

18

52

Strongly disagree

10

20

72

Disagree

14

28

100

Total

50

100

Chart no.4.25
Chart showing promotional tools does the Distributor use to promote the BINDU
products
40
34%

35

28%

30
25
20

20%

18%

17

14

15
10

10

Agree

Strongly
disagree

5
0
Strongly agree

Can't say

Frequency

Disagree

Percent

Interpretation:
The above chart shows that 34% of them cant say anything, 28% of retailers disagree this,
20% of retailers are strongly disagree about distributor providing the promotional tools and
only 18% of retailers are agreed for this. This is because of the distributors does not
providing any hoardings and stickers to the retailers for put up hoardings at outside the retail
shop etc.

57

Correlation coefficient between the Retailers ordering BINDU products


from the Distributor, Distributor visiting retailers outlet.
Calculation of Correlation
Let,
Retailers ordering BINDU products from the Distributor = X
Distributor visiting retailers outlet = Y

Table no. 4.27 Table shows calculation of correlation coefficient


S.No

x2

y2

xy

15

12

225

144

180

18

24

324

576

432

14

81

196

126

64

Total

50

50

694

916

738

Then the formula for calculating correlation

r=
r =0.048
Interpretation:
The relation between the Correlation coefficient of the retailers ordering the Bindu product
with the distributors visiting the retailers outlet by comparing using of correlation coefficient
shows the positive results. It indicates that the distributor visiting retailers outlet at the right
when the retailer want to buy the product.

58

Chapter-5

FINDINGS, SUGGESTIONS AND CONCLUSION


Findings

BINDU faced severe competition in soft drinks marketing by the players in the
market like Coca-Cola, Sprite, Limca, Mazza and Fanta this evident by the sales of
the retailer, pertaining to different soft drinks brands.

Most of the retailers say that, the products of BINDU are good quality and testy. So
retailers are happy to recommend BINDU products to customer.

Some distributors do not request a feedback from the retailers, this shows that there is
flow of information in the channel.

Adequate effort not made by the distributors to help the retailers to promote Bindu
product, the all distributors dont give hoardings and posters to all the retailers.

Megha fruit processing Pvt ltd doesnt pay good allowance to the distributors to
promote its products. This shows that company isnt making enough effort to promote
its product.

Most of the retailer order product from their distributors.

Most of the distributors response about promotional activity of Bindu products is


comparatively less.

The retailer orders the products as and when really need. And some retailers orders
weekly and fortnightly.

The retailers say that even price is an important factor which influences customer in
buying

Most of the retailers strongly agree that availability of product in their stores
influences customer buying decision.

Firm did not cover rural area. This was the more drawbacks to the company.

59

Suggestions

There has to be a regular meet between the channel members, there is limited
communication between the channel members and this lowers the flow of information
between them, the distributor has to host a meeting for the retailers every month, to
ensure that the retailers are satisfied with the distributor, it also enables the distributor
to gather valuable information regarding market trends.

Company has to maintain proper communication with intermediaries i.e. distributors,


retailers improving in sharing of opinion which is requires less cost and also obtain
higher satisfaction of distributors and retailers. .

Megha fruit processing has to set a part of its revenues especially for advertisement
and promotions. It is know that Bindu has a weak market presence. Spending on
advertisement and promotions will ensure that creates a brand image for itself
moreover it helps in creating interest among the consumers to buy Bindu products,
making it easier for the distributors and retailers to sell the products in the market.

Company has to develop in promotions through media. Which is help to increase


awareness about product to the consumers then it leading to increase the sales of
Bindu products, other certain tools like providing banners, posters etc. to the
intermediaries

A proper guidelines has to be set for the distributors by Megha fruit processing, it is
seen that the company issues targets to only certain distributors. Such sort
discrimination will eventually create tension between the distributors, so a similar set
guideline has to be made for the distributors as a whole.

Manage to availability all kinds of Bindu branded products in every outlet which
consumer can get an option to buy the product.

60

Conclusion
The study was conducted in MEGHA FRUIT PROCESSING PVT LTD, PUTTUR, to find
the working performance of distribution channels of Bindu products in the present market
scenario. The distribution channel of organization takes an important part to reach the product
for ultimate consumer especially in the soft drinks products because if products are not able
to reach on time, the consumers will search another brand. The market share of soft drinks
industries is growing 40% annually.
The distribution channels of megha fruit processing is effective one because of which the
company has good marketing strength, they give tough competition for MNCs and local
brands. The consumers are more preferable products based upon the quality, price and taste.
The company producing most unique products likes Sip On (pink guava drink) and fizz jeera
which gained good market reputations. The channel members more interest to work with
megha fruit processing they provide satisfactory allowances and profit margin was good.
To satisfy the Distributors and retailers of mega fruit processing company has to maintain
good relation with them and the company must have to take necessary to overcome from the
small problems mentioned in the analysis.
Some factors are influencing for the effective distribution channels are the main thing is the
company has not much uses advertisement and sales promotional activities to encourage
customer. Company should use advertising and sales promotional activities to encourage new
generation consumer to buy the product, new generation are much interested in knowing of
about creative advertising and sales promotional activities.
The production area is situated in rural area it face major problem to buy raw material and
incurs more transport costs for that they planning to expand their market by establishing new
production plant in Bangalore, Hyderabad in future.
In future the company having an ability to expand their market all over India and also outside
countries, the company will stands with in top beverage companies in future.

61

BIBLIOGRAPHY

Books
Philip kotler, g.a. (2010). Principles of marketing. In g.a.philip kotler, principles of
marketing. Person.
D.L.G.(2005). Sales and distribution management. In g. d. l, sales and distribution
management. New Delhi: excel book.

Journals
Polish journal of management studies, Szopa P., Pkaa W. (2012)
International Journal of Information Systems and Supply Chain Management, Volume
1, Issue 1 edited by John Wang 2008, IGI Global
International Business and Management (Ferri Kuswantoro, M. Mohd Rosli Radiah,
Abdul, Hamidreza Ghorbani)

Website
www.sgcorporates.com
yadda.icm.edu.pl/...article.../httpwww_pjms_zim_pcz_plpdfpjms6distrib
www.ibimapublishing.com/journals/JSCCRM/2012/261402/261402.pdf
www.cscanada.net/index.php/ibm/article/viewFile/j.ibm...1025/ pdf

ANNEXURE
Questionnaires for Distributors:
QUESTIONNEIRE
Dear sir/madam
I am PRAJWAL C K pursuing my M.B.A at VIVEKANNANDA COLLEGE OF
ENGENERING AND TECHNOLOGY, Puttur. As a part of our university curriculum
requirements, I am conducting a survey to know more about the effectiveness of distribution
channel of MEGHA FRUIT PROCESSING PVT LTD. I would be grateful if you could spare
a few minutes and participating in it.
Agent/ Distributors Name:

1. Since how many years you are associated with MEGHA fruit processing pvt ltd in
distribution of products?
a) Less than 1 year

b) 1-3 years

b)

d) More than 5 years

c) 3-5 year

2. What is your annual order size?


1,00,000-10,00,000

10,00,000-20,00,000

20,00,000-40,00,000

40,00,000 and above

3. Which particular features customer is concentrating more while purchasing BINDU


products?
a) Price

b) Quality

c) Taste.

d) Advertisement.

4. What is your average monthly sales target?


a) 100%

b) 100-80%

c) 80-50%

d) Below 50%

5. How many sales representatives do you employ?


a) 1-2

b) 2-5

c) More than 5

6. What is your opinion regarding MEGHA marketing efforts?


a) Very good

b) Satisfactory

c) Neutral

d) Poor

e) Very poor
7. Does MEGHA provide you with allowance for advertisement and promotions?
a) Strongly agree

b) cant say

c) Agree

d) strongly disagree

e) Disagree
8. Are you satisfied with the profit margin percentage provided by MEGHA?
a) Highly satisfied

b) satisfied

c) Less satisfied

d) not satisfied

9. Do you get the product from the company as and when you need?
a) Always

b) If emergency

c) Sometimes

d) Never

10. How often do you order you Bindu products?


a) Daily

b) Weekly

c) Alternative days

d) Fortnightly

e) Monthly
11. MEGHA FRUIT PROCESSING PVT LTD provides you credit with respect to
payments?
a) Weekly

b) Fortnightly

c) Monthly

d) Cash and carry

12. What is the position delivery of BINDU products?


a) Very good

b) Good

c) Bad

d) Worse

13. How they react to the response of MEGHA against complaints/ feedback?
a) Very good

b) Satisfactory

c) Neutral

d) Poor

e) Very poor
14. Relationship of the MEGHA FRUIT PROCESSING PVT LTD with you?
a) Very good

b) Satisfactory

c) Neutral

d) Poor

e) Very poor

Questionnaires for Retailers:


QUESTIONNEIRE
Dear sir/madam
I am PRAJWAL C K pursuing my M.B.A at VIVEKANNANDA COLLEGE OF
ENGENERING AND TECHNOLOGY, Puttur. As a part of our university curriculum
requirements, I am conducting a survey to know more about the effectiveness of distribution
channel of MEGHA FRUIT PROCESSING PVT LTD. I would be grateful if you could spare
a few minutes and participating in it.
Name of the Retailer:
1. What is your monthly order size for BINDU products?
1,000-5,000

5,000-10,000

10,000-15,000

15,000-20,000

2. How often you order products from the distributor?


a) Weekly

b) Fortnightly

c) Monthly

d) Alternative days

3. What is your opinion regarding the earning from BINDU products compared to other
brands?
a) High

b) Low

c) Neutral

4. Relationship of the distributor/sales executives with you?


a) Very good

b) Satisfactory

c) Neutral

d) Poor

d) Very poor
5. Are you satisfied with the margin given by MEGHA distributor?
a) Highly satisfied

b) Satisfied

c) Less satisfied

d) Not satisfied

6. How many times does the distributor visit your outlet?


a) Daily

b) Weekly

c) Fortnightly

d) Monthly

7. Are you getting the product from the distributor as and when you need?
a) Always

b) If emergency

c) Sometimes

d) Never

8. Are you satisfied with the service provided by the sales representative of your
MEGHA Distributor?
a) Highly satisfied

b) Satisfied

c) Less satisfied

d) Not satisfied

9. Whether the distributer asks any feedback from you?


a) Always
c) Sometimes

b) If emergency
d) Never

10. Does MEGHA distributor provide you with any support schemes (e.g. free pieces,
extended credit, etc)?
a) Always
c) Sometimes

b) If emergency
d) Never

11. Whether the distributor provides facilities for storing and displaying BINDU
products in your premises?
a) Strongly agree

b) cant say

c) Agree

d) strongly disagree

e) Disagree
12. Does your distributor provide you any posters and hoardings for promotion?
a) Strongly agree

b) cant say

c) Agree

d) strongly disagree

e) Disagree
13. Do you find any defects in the product distributed by your distributor?
a) Always

b) Cant say

c) Sometimes

d) Never

14. How MEGHA distributor response to the given feedback?


a) Very good

b) Satisfactory

c) Neutral

d) Poor