EFFECTIVENESS OF DISTRIBUTION CHANNELS OF EASTERN

CONDIMENTS PVT. LTD. THROUGH OKKAL DEPOT

by

SUDHI CHANDRAN
(2016-31-007)

MAJOR PROJECT PROPOSAL

Submitted in partial fulfillment of the

requirements for the Post Graduate degree of

MBA IN AGRIBUSINESS MANAGEMENT

Faculty of Agriculture

Kerala Agricultural University

COLLEGE OF CO-OPERATION, BANKING AND MANAGEMENT

VELLANIKARA, THRISSUR-680 656

KERALA, INDIA

2018
 1) Introduction

Channels of distribution provide market value by bringing finished products to end users.
This flow may involve the physical movement of the product or simply the transfer of title to it.
Also known as a distribution channel, a distribution chain, a distribution pipeline, a supply chain,
a marketing channel, a market channel, and a trade channel. Marketing channels always emerge
from the demands of a marketplace. However, markets and their needs are always changing. It's
true, then, that marketing channels operate in a state of continuous evolution and transformation.
Channels of distribution must constantly adapt in response to changes in the global marketplace.
Similarly, distribution channel is defined as “Distribution is the process of planning,
implementing and controlling the physical flow of materials, final goods and related information
from point of origin to point of consumption to meet customer requirements at a profit - Phillip
Kotler and Amstrong 2001.”
"Distribution channel – one or more companies or individuals who participate in the flow of
goods and services from the manufacturer to the final user or consumer"- Hill

A distribution channel is a chain of businesses or intermediaries through which a good or

service passes until it reaches the end consumer. It can include wholesalers, retailers, distributors
and even the internet. These channels are broken into direct and indirect forms. A direct channel
allows the consumer to buy the good from the manufacturer, and an indirect channel allows the
consumer to buy the good from a wholesaler or retailer. The distribution channel is the path by
which all goods and services must travel to arrive at the intended consumer. Conversely, it also
describes the pathway payments make from the end consumer to the original vendor.
Distribution channels can be short or long and depend on the amount of intermediaries required
to deliver a product or service.

Channels of distribution for a product is the way taken by the title to goods they are from
the producers to the ultimate consumers. It is very important because product in one place while
the consumption scattered in many place. So there is big gap between producers and the
consumers. So through channels of distribution can only fill the gap. A channel of distribution
connects a link between the producers and the consumers. The success of channels of distribution
[COD] is completely depending upon the middlemen as they create time and possession utility.
The COD helps in making products available at right time in the right place and in the right
quality.
The distribution can make or break a company. A good distribution system quite simply
means the company has greater chance of selling its products more than its competitors. Success of
each company lies on various aspects, among these the distribution channel is the most important
one. Each of the elements in these chains will have their own specific needs, which the producer
should consider, along with those of the all-important end-user or consumer. Each company had
their own distribution channel for their product marketing, it differ from other companies. Every
company wants to know effectiveness of distribution channel of its product. If the distribution
channel is not effective, the company cannot perform very well in the market. For better sale of its
product in the market, the company must formulate different strategies for the distribution channel.
A company can coordinate and formulate different activities in the distribution channel. A strong
distribution network is most important, because of unavailability strong distribution network, many
famous products go out of the market.
The Eastern Group of Companies founded by Mr. M.E. Meeran, started with a dream,
making good products available to the common man at the right prices. The Company was
established in 1983, is a pioneer in the state to produce packaged curry powders, Masala powders,
spices and coffee powder. The Eastern Condiments Pvt. Ltd. is a well-established name as Kerala‘s
largest manufacturer of condiments and one of the leading brand among the south India. An
expertise and experience collated over a period of 35 years has borne fruit. Nationwide branches,
two well-equipped factories situated in the Eastern high range of South India and over two million
satisfied household all over stand as solid evidence of its exceptional repute. A name that will hold
its own for years to come as the worthwhile manufacturers, distributors and exporters of the quality
natural and blended spices powders and spices. For eastern condiments their distribution is
mainly through direct marketing. The company sales officers directly reach to the retailers,
wholesalers, and supply-co to make sales. Their products are distributed from depot through van
to these retailers shop.
2) Statement of the problem
Vision -“Expand exclusive distributor network in India to over 5000 that is renowned for selling
our premium food products by 2020”.
This research is interested to study the effectiveness of distribution channel of Eastern condiments
ltd Adimaly in okkal depot. For the company, their main source income is through the direct sale of
products. The name Eastern is commonly known for people by saw their advertisement poster in
their own sales van. These van are very common in kerala state, this is the one major advertisement
followed by the company. Their distribution of products is directly from the manufactures to the
retailers or wholesalers. It also has sales through supply-co assisted by merchandiser. The
distribution through van is assisted by sales executive and sales officers. Their efforts are mainly
contributing to the company margin. Now days there is some drops of sales in the Blended Spice
Powders through okkal depot.
This research will study how to make the company’s product available to the final consumers as at
the right time, right quality and at an affordable price and which will be a challenge to the
management.
The study also deals with knowing the distribution process, how it performing, satisfaction level of
staff on the distribution strategy of Eastern, problems in the distribution channels and the
satisfaction level of customers (retailers and wholesalers). The impact of competition in these area
also comes under this study.

3) Objectives of the study

 To examine the issues related to distribution channel.

 To understand the satisfaction level of the customers (retailers) towards the existing
distribution channel.
 To understand the level of satisfaction of staff of the Eastern condiments in the
distribution channel.
 4) Methodology

a) Sampling design
The study will conducted on Customers (Retailers) and staff of Eastern condiments Ltd. Adimali.
b) Location
The research was conducted at Eastern condiments ltd, one of the popular masala producers in
India.This study is conducted through the Okkal depot, Where Angamaly,
Irinjalakkuda,Kottappuram route was chosen as a study area. Okkal depot has been chosen because
of this depot shown decrease in the sales performance. The GM Marketing Kerala sales instruct to
conduct the study in these locations.
c) Data source

Primary data will be collected from the staff, and customers of Eastern condiments Ltd. through
structured questionnaire. Secondary data will be collect from journals, books, articles, internet,
etc.

d) Period of the study

The study will be from September to December 2018.

e) Statistical tool
The data is analyzed using percentage and index calculation.

f) Parameters of the Study

At Staff level
 Frequency of order
 Environmental factors
 Time taken between order and delivery
 Quantity
 Communication
 Satisfaction on the margin they receive
At Retailers level
 Frequency of ordering
 Quantity
 Quality
 Brand preference
 Time taken between order and delivery
 Satisfaction on the margin they receive
 Communication

5) Scope of the study

  It explain the satisfaction level of the intermediaries;
 It explains the strength and weakness of the distribution channels;
 It helps the organization to manage in designing motivational schemes to increase the
moral of the sales workers and retailers.
 It concentrates on the problems of distributors, retailers.

6) Limitations of the study

• The respondent‘s bias may reduce the quality of the data collection.

7) Chapterisation

The project report will be divided into five main chapters.

Chapter 1-Design of the study.
Chapter 2-Review of Literature.
Chapter 3-Eastern Condiments Pvt. Ltd. –A company profile.
Chapter 4-Data analysis and interpretation.
Chapter 5-Summary of findings, Suggestions and Conclusion.
INTERVIEW SCHEDULE FOR RETAILERS

Personal Details
Name:
Age: 20- 30 30-40 40-50 above 50
Gender: Male Female
Experience in retailing shop:
Educational qualification: Illiterate SSLC HSE UG PG & above

1. What type of packs of spices are sells most?

100g 250g 500g 1kg

2. How much quantity of products you order in a week? (packet)

1-10 KG 10-20KG 20-30KG more than30

3. What are the spices dealership do you have?

Kitchen treasures Nirapara Sara’s Melam Kaula

Others

4. In your point of view who is the most valuable suppliers?

5. Is company provide the product in required quantity and in required time?

Yes No

6. At what frequency you get the Eastern products? 0-7 8-15 16-23 24-31

7. There is any you lose sales in case of non-availability of products? Yes No

8. Are you satisfied with the supply of products during each delivery? Yes No

9. Do customers ask specifically Eastern products? Yes No

10. Who bear the loss of broken packs? Yourself Company

 11. Criteria For Choosing Eastern

Discount availability of product company dealings delivery time

others

12. Why do you Sell the Eastern products?

Margin Availability Quality/Quantity Brand

Statements SA A MA D SD

Price of the products

Margin earned on a packs

Payment procedure

The rate of commission

Quality of products

Time gap between the order and delivery time

Billing Facility

Advertisement

Communication

13. Any suggestions?

 INTERVIEW SCHEDULE FOR EASTERN STAFF.

Personal Details

Name:

Age: 20- 30 31-40 41-50 above 50

Gender: Male Female

Educational qualification: SSLC HSE UG PG & above

Marital status: Single Married

Work experience: less than 10 years 10-20 above 20

Satisfaction with Eastern

Sl No Statements SA A MA D SD

1. Suitability and Interest in the Job

2. Ability to improve skill and knowledge from my

job

3. Dignity and respect from the job

4. Ability to live a happy home life with realisation

of aspirations

5. Importance given to my ideas to do things better

6. Communication of information about what is

going on

7. Rules and regulations given by Eastern to follow

the employees

8. The trust imposed on me by your superiors

9. Mutual cooperation among the co workers

10. Care Shown by the superior in learning my job

 efforts

11. Free discussion between the superiors and employees

12. The way of communicating the weaknesses of the

employees

13. Respect and encouragement given for my efforts

14. Free of expression of problems in free and informal

atmosphere

15. Way of listening to the suggestions made by

employees

16. I get decent income for the job I perform

17. Clarity and ability to understand the pay and

allowance system followed by the management

18. Clarity and ability to understand the incentive system

followed by the management

19. Schemes of financial rewards (Bata, bonus, etc...)

20. Non -financial rewards (gift, appreciation, etc...)

21. Comfort in the working hours

22. Comfort ability to work under the existing

environment

23. Safety measures (insurance coverage)

24. Sales meeting held by the management is helpful

25. Training helps to acquire knowledge and skill

26. Sufficiency of imparting training programme by the

HRD

27. The policies of management create conducive work

 environment

28. Sales target fixed by the management

29. Career opportunities and your growth is immensely

considered by the management

30. Conduct of workshops and seminars for further

development in your job

31. Care taken by the management for redressal of

grievances

32. Interest shown by the management in knowing the

prevalence of grievances

Satisfaction level on Products

Statements Excellent Very good Good Poor

How would you assess the quality of the product

in relation to competing products?
To what extent the company advertisement is

effective?

To what extent do you think retailers are satisfied

with the channel of distribution using the

company?

Statements Very high High Moderate Low

To what extent does environmental factors affect

the company distribution strategies?

1. Any suggestions?