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RESEARCH THESIS Comparative Analysis of Distribution System of Different Ice-cream Companies Session October 2008 - January 2010 Undertaken

By Umer Ijaz Ahmed Raza Mustansar Hafeez Muhammed Ali Khan L1F08MBAM1169 L1F08MBAM1166 L1F08MBAM1174 L1F08MBAM1187 Supervised By Prof. Nasir Riaz Faculty of Management Sciences Punjab College of Business Administration 31- Mai n Gulberg Lahore

DEDICATION All praises belong to almighty Allah who is the supreme authority knows the ulti mate relations underlying all sorts of phenomenon going on in this universe and whose blessings and exaltation flourished our thoughts and ambitions to have the cherished fruit of our modest efforts in the form of doing this thesis. We also offer our humblest thanks to HOLY PROPHET HAZRAT MUHAMMED (PBUH) who is the for ever torch of guidance and knowledge for humanity as a whole. We dedicate our report to our respected and most valuable teacher Prof. Nasir Ri az who taught us with great affection and dedication and gave us the opportunity to understand how to do a research project. We feel proud to present this repor t to the scholar of the new modern era. He gave us prestigious knowledge about t he different aspects of research, due to which we are able to write this report. In the last, we would also like to thank our near and dear ones and many other b osom friends of ours, who suffered uncomplainingly and plucked our courage durin g our long working hours. Thus with great love and appreciation, we dedicate thi s report to all the above-mentioned people and to all the readers of this report .

ABSTRACT This research thesis is covering different issues and research problems with reg ard to current distribution system of different ice-cream companies. The main ob jective of this study lies in understanding the organization, understanding the marketing channels of the company and to correct its distribution activities as well. We have also identified the satisfactions level of retailers for the curre nt delivery system of different ice-cream companies as well as also studied diff erent activities for each icecream company, which clearly suggest what are the s trength's of the company and where the company is lacking and what improvement i t need to do in order to achieve high satisfaction level among the retailer's wh o are key in the distribution channel of the company. During the entire course o f the project, different retailers and distributors were surveyed for analysis r egarding distribution effectiveness. In the first part of the project, a survey of selected outlets was conducted by taking interview of outlet owners or manage rs. We have collected important data using pre-designed questionnaire. By applyi ng different statistical tools we have found some useful information, which will definitely help the company to improve the effectiveness of the distribution ch annel. It was an excellent experience while working on the project. We have learnt abou t the environment and culture of the organization, its distribution structure; w hich will help us in our future endeavors in life. This report consists of five chapters. The first chapter deals with Introduction of project, Essentials of Pro ject study . The second chapter deals with Literature Review on the topic of distr ibution. The third chapter deals with Research Methodology, which includes data collection and analysis techniques, and sample size for the research project. Th e fourth chapter deals with Findings, Analysis and Interpretation of data collec ted from various outlets. The fifth chapter deals with Conclusion of project & w ith Recommendations and Annexure having Questionnaire, and Bibliography etc.

TABLE OF CONTENTS Page No. Chapter One Introduction Distribution Distribution Channel Discrepancies in distribution channel Complicated success factors for distribution Distributio n channel functions and flows Functions of a distribution channel Number of dist ribution channel levels Types of intermediaries Direct and indirect marketing in distribution Distribution intensity Distribution channel strategy Management of channel systems Distribution system of-ice cream companies Statement of the pro blem Significance of the study Objectives of the research project Chapter Two Lit erature Review Literature review Theoretical framework Chapter Three Research Meth ods & Data Collection Techniques Research Methodology Chapter Four Data Analysis a nd Presentation Chapter Five Conclusions & Recommendations Conclusions Recommendati ons Annexure Questionnaire Bibliography and References 3 3 5 6 6 7 8 10 11 13 14 15 18 21 21 21 24 35 40 43 75 76 78

Chapter 1 Introduction

1. Introduction 1.1. Distribution The Meaning of the Word "Distribution" having studied under the head of consumpt ion the human wants that lead to economic activity, and the satisfactions that r esult from consumption; having studied in the second place the production of goo ds and services for the satisfaction of human wants; and having in the third pla ce studied the subject of transfers of goods and services, and especially of the ir exchange among producers or between producers and consumers. 1.2. Distribution Channel Many producers do not sell products or services directly to consumers and instea d use marketing intermediaries to execute an assortment of necessary functions t o get the product to the final user. These intermediaries, such as middlemen (wh olesalers, retailers, agents, and brokers), distributors, or financial intermedi aries, typically enter into longer-term commitments with the producer and make u p what is known as the marketing channel, or the channel of distribution. Manufa cturers use raw materials to produce finished products, which in turn may be sen t directly to the retailer, or, less often, to the consumer. However, as a gener al rule, finished goods flow from the manufacturer to one or more wholesalers be fore they reach the retailer and, finally, the consumer. Each party in the distr ibution channel usually acquires legal possession of goods during their physical transfer, but this is not always the case. For instance, in consignment selling , the producer retains full legal ownership even though the goods may be in the hands of the wholesaler or retailer that is, until the merchandise reaches the f inal user or consumer. Channels of distribution tend to be more direct that is, shorter and simpler in the less industrialized nations. There are notable except ions, however. For instance, the Ghana Cocoa Marketing Board collects cacao bean s in Ghana and licenses trading firms to process the commodity. Similar marketin g processes are used in other West African nations. Because of the vast number o f small-scale producers, these agents

operate through middlemen who, in turn, enlist sub-buyers to find runners to tra nsport the products from remote areas. Japans marketing organization was, until t he late 20th century, characterized by long and complex channels of distribution and a variety of wholesalers. It was possible for a product to pass through a m inimum of five separate wholesalers before it reached a retailer. Companies have a wide range of distribution channels available to them, and structuring the ri ght channel may be one of the companys most critical marketing decisions. Busines ses may sell products directly to the final customer, as Lands End, Inc. does wit h its mail-order goods and as is the case with most industrial capital goods. Or they may use one or more intermediaries to move their goods to the final user. The design and structure of consumer marketing channels and industrial marketing channels can be quite similar or vary widely. The channel design is based on th e level of service desired by the target consumer. There are five primary servic e components that facilitate the marketers understanding of what, where, why, whe n, and how target customers buy certain products. The service variables are quan tity or lot size (the number of units a customer purchases on any given purchase occasion), waiting time (the amount of time customers are willing to wait for r eceipt of goods), proximity or spatial convenience (accessibility of the product ), product variety (the breadth of assortment of the product offering), and serv ice backup (add-on services such as delivery or installation provided by the cha nnel). It is essential for the designer of the marketing channel typically the m anufacturer to recognize the level of each service point that the target custome r desires. A single manufacturer may service several target customer groups thro ugh separate channels, and therefore each set of service outputs for these group s could vary. One group of target customers may want elevated levels of service (that is, fast delivery, high product availability, large product assortment, an d installation). Their demand for such increased service translates into higher costs for the channel and higher prices for customers. However, the prosperity o f discount and warehouse stores demonstrates that customers are willing to accep t lower service outputs if this leads to lower prices.

1.3. Discrepancies in Distribution Channel Distribution channels should take care of the following discrepancies. Spatial Temporal Discrepancy Breaking bulk Assortment Spatial This channel system helps reduce the distance between the producer and the consu mer of his products. Consumers are spotted and have to be reached cost effective ly. Example: Companies produce products in one location even for global needs. MICO makes fuel injection equipment, spark plugs etc in different plants but its deal er will sell the entire products. Temporal Discrepancy The channel system helps in speeding up in meeting the requirement of the consum ers. Time when the product is made and when it is consumed it is different. Example: Maruti plant in Gorgon - cars and spares are available when the consume r wants. Breaking Bulk The channel system reduces large quantities into consumer acceptable lot sizes. Production has to be in large quantities to benefit from economies of scale. Con sumption is necessarily in small lot sizes.

Example: India is ultimate example in breaking bulk you can buy one cigarette, o ne Annacian. Need for Assortment The channel system helps aggregate a range of products for the benefit of the co nsumer that could be made by one company or several of them. For the same produc t, it could be a variety of brands and package sizes. 1.4. Complicated Success Factors for Distribution The distribution strategy also needs the support and encouragement of top manage ment to succeed. Some of the CSFs could be: Clear, transparent and unambiguous p olicy and procedure should require of serious commitment of the channel partners . Fairness in dealings. Clearly defined customer service policy. High level of int egrity. Equitable distribution at times of shortage. Timely compensation channel partners. 1.5. Distribution Channel functions and flows In order to deliver the optimal level of service outputs to their target consume rs, manufacturers are willing to allocate some of their tasks, or marketing flow s, to intermediaries. As any marketing channel moves goods from producers to con sumers, the marketing intermediaries perform, or participate in, a number of mar keting flows, or activities. The typical marketing flows, listed in the usual se quence in which they arise, are collection and distribution of marketing researc h information (information), development and dissemination of persuasive communications (promotion), agreement on terms for transfer of ownership or poss ession (negotiation), intentions to buy (ordering), acquisition and allocation o f

funds (financing), assumption of risks (risk taking), storage and movement of pr oduct (physical possession), buyers paying sellers (payment), and transfer of ow nership (title). Each of these flows must be performed by a marketing intermedia ry for any channel to deliver the goods to the final consumer. Thus, each produc er must decide who will perform which of these functions in order to deliver the service output levels that the target consumers desire. Producers delegate thes e flows for a variety of reasons. First, they may lack the financial resources t o carry out the intermediary activities themselves. Second, many producers can e arn a superior return on their capital by investing profits back into their core business rather than into the distribution of their products. Finally, intermed iaries, or middlemen, offer superior efficiency in making goods and services wid ely available and accessible to final users. For instance, in overseas markets i t may be difficult for an exporter to establish contact with end users, and vari ous kinds of agents must therefore be employed. Because an intermediary typicall y focuses on only a small handful of specialized tasks within the marketing chan nel, each intermediary, through specialization, experience, or scale of operatio n, can offer a producer greater distribution benefits. 1.6. Functions of a Distribution Channel The main function of a distribution channel is to provide a link between product ion and consumption. Organizations that form any particular distribution channel perform many key functions: Information Gathering and distributing market resea rch and intelligence, important for marketing planning. Promotion Developing offers. and spreading communications about Contact Finding and communicating with prospective buyers.

Matching Adjusting the offer to fit a buyer s needs, including grading, assembling and pa ckaging. Negotiation Reaching agreement on price and other terms of the offer. Physical Distribution Transporting and storing goods. Financing Acquiring and using funds to cover the costs of the distribution channel. Risk taking Assuming some commercial risks by operating the channel (e.g. holding stock). All of the above functions need to be undertaken in any market. The question is who performs them and how many levels there need to be in the distribution chann el in order to make it cost effective. 1.7. Numbers of Distribution Channel Levels Each layer of marketing intermediaries that performs some work in bringing the p roduct to its final buyer is a "channel level". The figure below shows some exam ples of channel levels for consumer marketing channels:

In the figure above, Channel 1 is called a "direct-marketing" channel, since it has no intermediary levels. In this case the manufacturer sells directly to cust omers. An example of a direct marketing channel would be a factory outlet store that sells directly through her own retail stores, for example, Bata. This is th e simplest and the shortest channel. It is fast and economical. Small producers and producers of perishable commodities also sell directly to the local consumer s. Big firms adopt direct selling in order to cut distribution cost and because they have sufficient facilities to sell directly to the consumers. The producer or the entrepreneur himself performs all the marketing activities. The remaining channels are "indirect-marketing channels". Channel 2 contains one intermediary . In consumer markets, this is typically a retailer. In this channel, the produc er sells to big retailers like departmental stores and chain stores who in turn sell to customer. This channel is very popular in the distribution of consumer d urables such as refrigerators, TV sets, washing machines, typewriters, etc. This channel of distribution is very popular these days because of emergence of depa rtmental stores, super markets and other big retail stores. The retailers purcha se in large quantities from the producer and perform certain marketing activitie s in order to sell the product to the ultimate consumers. The consumer electrica l goods market in the UK is typical of this arrangement whereby producers such a s Sony, Panasonic, Canon etc. sell their goods directly to large retailers such as Comet, Dixons and Currys which then sell the goods to the final consumers. Channel 3 contains two intermediary levels - a wholesaler and a retailer. A whol esaler typically buys and stores large quantities of several producers goods and then breaks into the bulk deliveries to supply retailers with smaller quantities . For small retailers with limited order quantities, the use of wholesalers make s economic sense. This arrangement tends to work best where the retail channel i s fragmented - i.e. not dominated by a small number of large, powerful retailers who have an incentive to cut out the wholesaler. A good example of this channel is most suitable for the products with widely scattered market. It is used in t he distribution of consumer products like groceries, drugs, cosmetics, etc.

1.8. Types of Intermediaries There is a variety of intermediaries that may get involved before a product gets from the original producer to the final user. These are described briefly below : Retailers Retailers operate outlets that trade directly with household custome rs. Retailers can be classified in several ways: o Type of goods being sold ( e. g. clothes, grocery, furniture). o Type of service (e.g. self-service, counter-s ervice). o Size (e.g. corner shop; superstore). o Ownership (e.g. privately-owne d independent; public-quoted retail group). o Location (e.g. rural, city-centre, out-of-town). o Brand (e.g. nationwide retail brands; local one-shop name). Wholesalers Wholesalers stock a range of products from several producers. The ro le of the wholesaler is to sell onto retailers. Wholesalers usually specialize i n particular products. Distributors and dealers Distributors or dealers have a s imilar role to wholesalers that of taking products from producers and selling th em on. However, they often sell onto the end customer rather than a retailer. Th ey also usually have a much narrower product range. Distributors and dealers are often involved in providing after-sales service. Franchises Franchises are inde pendent businesses that operate a branded product (usually a service) in exchang e for a license fee and a share of sales.

Agents Agents sell the products and services of producers in return for a commis sion (a percentage of the sales revenues). 1.9. Direct and Indirect Marketing in Distribution Direct Marketing A key decision a business has to make about distribution is whether to sell direc t . This method of distribution is usually called direct marketing. Direct marketing means selling products by dealing directly with consumers rather than through i ntermediaries. Traditional methods include mail order, direct-mail selling, cold calling, telephone selling, and door-to-door calling. More recently telemarketi ng, direct radio selling, magazine and TV advertising, and on-line computer shop ping have been developed. The main advantages of selling direct are that there i s no need to share profit margins and the producer has complete control over the sales process. Products are not sold alongside those of competitors either. The re may also be specific market factors that encourage direct selling: o There ma y be a need for an expert sales force, to demonstrate products, provide detailed pre-sale information and after-sales service. o Retailers, distributors, dealer s and other intermediaries may be unwilling to sell the product. o Existing dist ribution channels may be owned by, or linked to, competing producers (making it hard to obtain distribution by any other means than direct).

However, there are significant costs associated with selling direct which may be higher than the costs associated with using an intermediary to generate the sam e level of sales. There are several potential advantages of using an intermediar y: o More efficient distribution logistics. o Overall costs (even taking into ac count the intermediaries margin or commission) may be lower. o Consumers may expe ct choice (i.e. the products and brands of many producers) at the point of sale. o Producers may not have sufficient resources or expertise to sell direct. Indirect Marketing It is the system the marketer reaches the intended final user with the thers. These resellers generally take ownership of the product, though ases they may sell products on a consignment basis (i.e., only pay the company if the product is sold). Under this system intermediaries may ed to assume many responsibilities to help sell the product. help of o in some c supplying be expect

Indirect methods include: o Single-Party Selling System Under this system the ma rketer engages another party who then sells and distributes directly to the fina l customer. This is most likely to occur when the product is sold through large store-based retail chains or through online retailers, in which case it is often referred to as a trade selling system.

o Multiple-Party Selling System This indirect distribution system has the produc t passing through two or more distributors before reaching the final customer. T he most likely scenario is when a wholesaler purchases from the manufacturer and sells the product to retailer. o Stream Line Distribution To improve the effici ency of process, business organization by simplifying or eliminating unnecessary steps, using modernizing techniques, or taking other approaches. 1.10. Distribution Intensity There are three broad options - intensive, selective and exclusive distribution: o Intensive distribution It aims to provide saturation coverage of the market b y using all available outlets. For many products, total sales are directly linke d to the number of outlets used (e.g. cigarettes, beer). Intensive distribution is usually required where customers have a range of acceptable brands to chose f rom. In other words, if one brand is not available, a customer will simply choos e another. o Selective distribution It involves a producer using a limited numbe r of outlets in a geographical area to sell products. An advantage of this appro ach is that the producer can choose the most appropriate or best-performing outl ets and focus effort (e.g. training) on them. Selective distribution works best when consumers are prepared to "shop around" - in other words - they have a pref erence for a particular brand or price and will search out the outlets that supp ly.

o Exclusive distribution It is an extreme form of selective distribution in whic h only one wholesaler, retailer or distributor is used in a specific geographica l area. 1.11. Distribution Channel Strategy Following are the factors that influence the choice of distribution channel by a business: o Market factors An important market factor is "buyer behavior"; how do buyers want to purchase the product? Do they prefer to buy from retailers, lo cally, via mail order or perhaps over the Internet? Another important factor is buyer needs for product information, installation and servicing. Which channels are best served to provide the customer with the information they need before bu ying? Does the product need specific technical assistance either to install or s ervice a product? Intermediaries are often best placed to provide servicing rath er than the original producer - for example in the case of motor cars. The willi ngness of channel intermediaries to market product is also a factor. Retailers i n particular invest heavily in properties, shop fitting etc. They may decide not to support a particular product if it requires too much investment (e.g. traini ng, display equipment, warehousing). Another important factor is intermediary co st. Intermediaries typically charge a "mark-up" or "commission" for participatin g in the channel. This might be deemed unacceptably high for the ultimate produc er business.

o Producer factors A key question is whether the producer have the resources to perform the functions of the channel? For example a producer may not have the re sources to recruit, train and equip a sales team. If so, the only option may be to use agents and/or other distributors. Producers may also feel that they do no t possess the customer-based skills to distribute their products. Many channel i ntermediaries focus heavily on the customer interface as a way of creating compe titive advantage and cementing the relationship with their supplying producers. Another factor is the extent to which producers want to maintain control over ho w, to whom and at what price a product is sold. If a manufacturer sells via a re tailer, they effective lose control over the final consumer price, since the ret ailer sets the price and any relevant discounts or promotional offers. Similarly , there is no guarantee for a producer that their product/(s) are actually been stocked by the retailer. Direct distribution gives a producer much more control over these issues. o Product factors Large complex products are often supplied d irect to customers (e.g. complex medical equipment sold to hospitals). By contra st perishable products (such as frozen food, meat, bread) require relatively sho rt distribution channels - ideally suited to using intermediaries such as retail ers. 1.12. Management of Channel Systems Although middlemen can offer greater distribution economy to producers, gaining cooperation from these middlemen can be problematic. Middlemen must continuously be motivated and stimulated to perform at the highest level. In order to gain s uch a high level of performance, manufacturers need some sort of leverage.

Researchers have distinguished five bases of power: coercive (threats if the mid dlemen do not comply), reward (extra benefits for compliance), legitimate (power by positionrank or contract), expert (special knowledge), and referent (manufacturer is highly respected by the middlemen). As new institutions emerge or products enter different life-cycle phases, distribution channels change and evolve. With these types of changes, no matter how well the channel is designed and managed, conflict is inevitable. Often this conflict develops because the in terests of the independent businesses do not coincide. For example, franchisers, because they receive a percentage of sales, typically want their franchisees to maximize sales, while the franchisees want to maximize their profits, not sales . The conflict that arises may be vertical, horizontal, or multichannel in natur e. When General Motors Corporation comes into conflict with its dealers, this is a vertical channel conflict. Horizontal channel conflict arises when a franchis ee in a neighboring town feels a fellow franchisee has infringed on its territor y. Finally, multichannel conflict occurs when a manufacturer has established two or more channels that compete against each other in selling to the same market. For example, a major tire manufacturer may begin selling its tires through mass merchandisers, much to the dismay of its independent tire dealers. In the moder n market, to manage the conflicts among intermediaries, marketers have developed a new type of distribution channel which is called the vertical marketing syste m. Vertical Marketing System It is structure in which intermediaries act as a un ified system. One channel member will possess a huge power upon others. Therefor e lead to an improvement in cooperation. Types of Vertical Marketing System There are three types of vertical marketing system. The most basic type is corpo rate VMS which combines successive stages of production and

distribution under single ownership (Kotler.P, 2001). The next one is called con tractual VMS which consists of independent businesses at different levels of pro duction and distribution. They are tied together through contracts to obtain adv antages and amelioration in sales. Conflicts are managed through contractual agr eement among channel members. Finally, administer VMS coordinates successive sta ges of production and distribution through the size and power of one of the part ies. Leadership is assumed by one or a few dominant channel members. Horizontal Marketing Systems Apart from vertical marketing systems, another channel develop ment is the horizontal marketing system. The system developed when two or more c ompanies cooperate, or form a new company by combining assets, which will provid e greater benefits than by acting alone. Usually a horizontal marketing system i s established so that the individual members can combine resources to make the m ost out of the marketing situation. This system is also effective in global dist ribution channel. Hybrid Marketing Systems A hybrid marketing channels is another name for multich annel distribution system in which one firm establishes two or more separate mar keting channels to serve its customers. This system is greatly improving in rece nt years. Companies are creating new hybrid marketing systems that promise to be come the dominant marketing design. These systems offer greater coverage and red uced costs, but they are also hard to manage. Companies will find many convenien ces and advantages when facing large and complex markets. However, hybrid channe l systems would generate conflict as more channels are competing for sales and p rofit.

1.13. Distribution System of Ice-cream Companies Distribution One of the competitive advantages of the ice-cream companies is its availability , which is ensured by extensive distribution. The distribution of ice cream is d ifferent from other products. To keep it in a good form it must be chilled at ap propriate temperature. For this purpose deep freezers are used, which are provid ed by the company. However, the running costs are to be paid by the retailers. F or this purpose the ice-cream companies gives a maximum margin of 18% to its ret ailers\distributors, which is distributed over entire channel. Pakistan is divid ed in three major sections. These are as follows: 1. North (Islamabad, Peshawar and Northern areas). 2. Central (Lahore and Central Punjab). 3. South (Sindh and Baluchistan). Distribution Channel Distribution channel consists of all the people and organizations, which are inv olved, in the physical distribution of goods. Selection of proper distribution c hannel is very important aspect because if the channel is managed efficiently, c ompanies can save high costs and thus generate profits. The cooperation of chann el members is also of vital importance. Distribution is making the product avail able but this availability should ensure that product must be: At right place At right time In right condition If there is any deficiency in an y of these basic elements of distribution, the future of product would be uncert ain. Distribution is such an activity, which could decide the fate of the produc t.

Mostly the ice-cream companies such as WALLS have a Hybrid Distribution System. I t reaches different customers through different systems. WALLS is using two types of distribution channels, both are indirect channels. HICO has no proper distri bution system, they distribute directly from their factory. OMORE is a new brand in the market from last one year and they are developing their distribution syst em. Currently they have 2 cold stores, one is situated in Lahore and other is in Islamabad. Yummy has one warehouse / cold store in Multan and one in Islamabad and they distribute their products in Lahore region directly from their factory. 1. Producer - Distributor - Retailer - Consumer This is commonly used, in which the ice-cream companies send the products to the local distributors who supply the products to the retailer in the required quan tity. The retailer then sells it to the customer. The specialty and effectivenes s of this system is excellent. The reason for such an excellent distribution sys tem is the distribution policy. If a retailer wants to sell an ice cream, the in vestment he needs to do is as: Security for Retailer the freezers Investment on Board for Total investment required Ice cream products advertisement Others 15000 12-15,000 3000 30,000 WALLS Nil 12-15,000 Nil 15,000 Thats why most retailers are attracted to the WALLS. Another important thing which needs to be discussed about the distribution is that during this distribution c hannel, the standard temperature of the cold chain is maintained.

2. Producer - Stock Pointer - Dealer - Retailer - (Cycles) - Consumer The second type of system was more a short term distribution system which has ju st for the introduction stage to actually made the product reach everywhere and the system was more of creating awareness than actual retailing purpose. But the cycle distribution system yielded excellent results in terms of sales and creat ing awareness about the products. Now the cycle contributes a big percentage of shares in the overall sale of the company. So this has now become a permanent di stribution channel of the ice-cream companies. One of the major reasons of early success and clean sweep given by WALLS is its availability, which is ensured thr ough extensive distribution. There is not even a single city in the country wher e one cannot find a walls freezer or hear the sweet music of the trike (tricycle s), which acts as a direct marketing for it. Thus, WALLS has always tried its bes t to ensure the availability of the product as close to the customers as possibl e and WALLS has been very successful in that. Distribution Strategies There are two main distribution strategies, which ice-cream companies have very effectively used. In first strategy include incentives like free deep freezers, discounts on bulk purchases. Advertising campaign that reminds and persuades customers to buy ice cream suppo rts 2nd strategy, which is facilitated by price offs, which are frequently offer ed by the company.

1.14. Statement of the problem The problem which we will have to resolve in our research work is that, we have to analyze effective distribution systems of different ice-cream companies. The needs and wants of the distribution channel members and the problems faced by th em. How many retailers, wholesalers and distributors are currently providing ice -cream products to the customers. What so ever the requirement might be, so here we are concerned to check out these problems or some other problems which will be incurred during the research work. 1.15. Significance of the study By studying all these problems through different fact finding techniques and acc omplishing the objectives of the research, we will reach to certain results whic h help us to make certain conclusions that whether the distribution system adopt ed by different ice-cream companies is effective or not and if any of the compan y has no effective distribution system then what criteria and ways they should a dopt to have an effective distribution system in their company and how they can increase their market share with the help of proper and effective distribution s ystem. 1.16. Objectives of the Research Project To understand the distribution system of different ice-cream companies. To find the market share of each company. To determine the key areas of strength and wea kness for each companys distribution system. To find the lacunas in the current d istribution system. To compare the sales and distribution effectiveness of each company. To find the comfort level of the dealers with the current distribution system. To identify the issues faced by the retailers, wholesalers and distribut ors. To get the feedback from retailers, wholesalers and distributor.

To know whether wholesaler is able to satisfy the retailers needs in their speci fic area or not. To identify the area of service in which company needs to impro ve. To help the company in designing proper strategies for effective distributio n system.

Chapter 2 Literature Review & Theoretical Framework

2. Literature Review We review the literature starting from the basic description about the distribut ion channels, and then zooming in to distribution channel conflict, discount str ucture dynamics for the distributors, distribution logistics and warehouse distr ibution, and finally the effectiveness of distribution channels that how distrib ution channels can work more effectively and efficiently in success of any organ ization. 1. According to Bizzhelp24, (A UK business and finance resource providi ng Business Help, for individuals and Traders) wrote an article about Distributio n Channels that is published in (2005). This article describes the term of distribution and the importance of different distribution channels that how they can be used efficiently and effectively in the businesses. According to this ar ticle distribution is all about getting the products / services to the right peo ple at the right time with special consideration for profit and effectiveness. T he successful marketing does not end when a business has developed a product / s ervice and has found its appropriate target audience with a view to selling it a t the right price. The main issue that needs to be faced is that how they are go ing to distribute and sell those products / services to its ultimate consumers. When a product / service are purchased by a consumer, it may have been bought di rectly from the business, or it may have been through a number of intermediaries (wholesaler, retailer, etc): these are known as distribution channels. These di stribution channels are influenced largely by the type and size of the business. The most important and vital part of administrating and selling the products is deciding how they will be distributed; this affects the costs, price and profit of the products; as well as affecting how accessible they are for customers. In this article they have described three common methods of distribution which are as follows: Keeping stock in your premises or a warehouse, and distributing dir ectly to customers.

Distributing to a number of local warehouses, which then distribute to the custo mers. Distributing to regional warehouses, which distribute to local centers, an d then deliver to customers. They said that if the customers are local, it would make sense to distribute from a single place. The success of each system will d epend on the amount of orders, as well as the locations of customers. If all the customers are local, it would make sense to distribute from a single place; whe re as if customers are scattered, a regional system may be more effective. 2. K. Mackillop, (2009) in the article Defining the Distribution Channels for Business describes that it is important to define the best distribution channels for the product, and for the customers. According to this article the distribution chann el is the way the product gets to the customer. He argues that traditionally, bu sinesses relied on a single distribution channel but now the most successful bus inesses are those who use multiple routes to reach a broader customer base. He a lso gave some examples of a single and a multiple distribution channels to reach to customers. According to him, for specialized, service-only ventures, the emp loyees will personally deliver to the client, either on-site or at their place o f business. Examples of these types of businesses are cleaning services, auto de tailing, personal coaching, consulting, personal training, and training. Restaur ants and other food service ventures also fall into this category. Selling retai l products, on the other hand, allows multiple options for distribution online s ales, brick-and-mortar storefront, direct sales through sales reps, festivals or shows, etc. The author also put emphasis on the distribution channels that are adopted by the competitors. He says that the organization should consider the di stribution routes used by their closest competitors to analyze that whether they are using the most effective channels or not. He further said that the target a nd potential customers of an organization also plays an important role in the di stribution channels selected by the organization. If organizations are selling d irectly to the end user, they probably have more options than if they are target ing distributors to market their product. If product is new to the market, consi der where the target market currently purchases similar products. If it is

easier for the customers to buy from you rather than your competitors, they will come. The organizations should consider all three factors product, customers, a nd organization itself before deciding the best routes for the business. If poss ible, consider developing multiple distribution channels because the more ways t he product can get to the customers, the bigger is the potential market. 3. Rich ard Earls, (2009) in his article Understanding Distribution Channels describes dis tribution channel as a chain of tactics and people through which the organizatio n gain access to clients. According to him if an organization has a website that is a distribution channel, as are the trade shows to sell the services; face to face meeting with a client is another distribution channel. Each distribution c hannel might employ a variety of tactics, specially crafted for that particular channel. He says that it is important to recognize distribution channels and the role they play in generating business. The next step is to focus on the tactics one use to drive business through each of these channels. Develop a set of fine ly honed tactics for each marketing collateral, promotions, allies and events. C alendar your efforts to keep them organized and sharp. Look at each distribution channel you have and fine tune all of the tactics that surround them. The organ ization should focus on each as a separate opportunity. 4. Scott White, (2006) i n his article All About Fulfillment Marketing Firms talked about the big shift fro m traditional marketing systems to the increasing use of Internet marketing whic h makes business very difficult for small to mediumsized manufacturers who want to cut costs and handle their own distribution and promotion. It s understandabl e for large manufacturers that have opened their own stores along with major ret ailers favoring their own brands, are pushing small players aside. Major players have the distribution systems and sales information systems to make their marke ting campaigns work smoothly and effectively. That efficacy simply drowns out sm aller players trying to get retailer s attention. They know what s working and w hat isn t right away and can respond quickly. According to the author, marketing fulfillment is the process of delivering marketing materials through marketing distribution channels, along with providing sales training, and communicating wi th channel members to ensure the complete marketing campaign is carried out on t ime. Without this integration of marketing

and promotional materials, and the coordinated timing of their delivery to retai l and wholesale locations, the retail advertising campaign won t achieve the res ults desired. He further said marketing channels today are shorter than they use d to be, but they re more complex. Even with online and electronic payment syste ms, marketing materials have to be created and distributed through larger distan ces and overcome stronger distribution barriers. He says that effective marketer s can shift resources at just the right time to make the promotions ineffective. If the organization coming from a weak distribution position, competitors can e asily take advantage of it. So the organization should have a strong distributio n network in order to compete with the competitors more effectively. 5. John Hen derson, (2007) in his article Discount Structure Dynamics talked about discount pr icing structures for distributors. He says that distributors discount pricing st ructures is one of the most misunderstood and underutilized elements in distribu tor marketing programs. The direct affect on the company s and their distributor s profitability makes discount structures the most important element in the bus iness relationships. According to him, the truth behind this fact is that most o f the existing discount structures were not designed to support today s marketin g strategies and need to be re-evaluated. Many companies change the structure us ing a "team" approach, but few have an individual that owns the responsibility. If companies are avoiding making changes to their discount structures, fearing t hat the end result will be perceived as either "a price increase" (which will re duce unit sales) or a "a price decrease" (which will reduce profitability). The author further says that a well-designed distributor discount pricing structure helps in achieving marketing objectives, which are as follows: Increase market s hare. Establish presence in a distribution channel. Emphasize particular product lines. Discipline and control your marketing expenditures. Reduce costs. Differ entiate between distributors. Communicate values and strategies.

Acknowledge and reward channel excellence. Acknowledge and reward loyalty. Wellstructured discount programs are designed to compensate the distributor for perf orming marketing functions (and the costs associated with performing these funct ions) that the manufacturer would otherwise be responsible for: Carrying invento ry Sales and technical support Order handling Extending credit The author believes that activity-based discounting will be the future basis for all channel compensation. The roles and responsibility of distributors and the basis for their compensation change as manufacturers work to take costs out of t heir channel systems and improve customer service. Many firms are attracted to a ctivity-based discounting because it is fair and generally supportive of their o verall marketing strategies. In essence, an activity-based discount structure "p ays" the channel for "what it does," or "you get what you pay for." 6. Phil More ttini, (2006) in his article Distribution Channel Conflict talked about the confli ct between distribution channels and what strategies can be used to resolve that conflict between the distribution channels. He also quoted an example of the co nflict between two different distribution channels in his article. The author ga ve some recommendations to resolve the distribution channel conflict, he said se ll through every channel that makes sense. There are many potential channels for the products: direct, OEM, retailers, independent sales reps, strategic partner referrals, and more. In extreme cases, all of these potential channels may be a ppropriate ways to deliver the companys products to the market. If the organizati on is honest and fair with people, potential channel conflict shouldn t unnecess arily stop an organization from maximizing revenue by using multiple methods of delivering the product to the market. There is a range of customer profiles in t he market. Some want to buy everything through their trusted integrator, who hel ps give them a third party evaluation of the product s virtues. Others want to d eal directly only with the manufacturer or developer of

the specific product they are purchasing. A third category of buyers likes to bu y as much as possible through their favorite large manufacturer this is a great reason to OEM your product to the IBMs of the world. In each of these situations , the channel that is best positioned, via relationship or type of support, shou ld and usually will get the deal. The last category of buyer, however, is differ ent. This is the bargain basement buyer, the one who couldn t care less who he b uys from, as long as he gets the lowest price. Bargain basement buyer is a price conscious buyer that will often bring cross-channel conflict to the forefront. Since they are seeking the lowest price, they end up shopping the purchase acros s many potential sources for the product, creating great price competition among your channel partners. This is where conflict is often born. 7. Gordon Petten, (2006) in his article Distribution Logistics and Warehouse Distribution said that distribution logistics plays a valuable and important role in any warehouse dist ribution system. As every warehouse is unique, and thus has its own unique distr ibution logistics. It can be something as simple as the number of floors or some thing as complex as the computer system used. But whatever causes them to be uni que, distribution logistics must be taken into account when designing any servic e which utilizes warehouse distribution. According to the author, a retail busin ess is only as good as its channel of distribution. It could be equally stated t hat distribution logistics are the current that makes that channel flow. Many ma nagers make the mistake of creating a "one size fits all" approach to warehouse distribution. They believe that all warehouses should operate in essentially the same manner, and the way to achieve this uniformity is through uniform distribu tion logistics. Distribution logistics in any warehouse distribution system shou ld be viewed in much the same way individual workers are viewed. It is exactly t he same way with the distribution logistics in any warehouse distribution system . What works in one warehouse, may not work in another. What optimizes the distr ibution systems in one warehouse may cause problems in another. However, this is not an excuse to allow retrograde practices to continue. If a certain warehouse is truly underperforming, something needs to be done; and uniformity could be t he answer. The author said that it is merely to say that distribution logistics is not a "one size fits all" affair, and should not uniformly be treated as such . Each warehouse should be studied, its practices examined,

and then decisions can be made. Obviously, distribution logistics in a warehouse distribution system require some of the most care and attention of anything in the distribution chain. So think twice before making any decision. 8. S.Shiny Ni ar, (2009) in her article Innovation in Logistics Industry describes the design of a multi-tiered distribution network. She says that the key to a successful dist ribution strategy will be proximity. The tail that wags the distribution dog is transportation reliability. Transportation reliability or unreliability will pla y a key role in determining the number of nodes required for distribution and th e inventory to support it. Even firms with fast-moving goods will be required to set up decentralized, multi-tiered distribution networks that are: Rely more he avily on Inventory. Reside close to the Market. Use Technology to provide visibi lity and Collaboration. Select a Key Partner. 9. Stephen Kavita, (2009) in her a rticle Effective Distribution Channels that affect Product Affordability says that businesses operating in a product oriented market often vary in their distribut ion channels to suit their customers needs. This is due to frequent changes in the market trends and the economic implications. Stephen also put more emphasis on different types of distribution channels that are more effective for the busi nesses. According to her, businesses will go for the least expensive distributio n channels since the goods going through these kind of structures will also be a ffordable, increasing the demand for such goods. She gives more importance to di rect selling and avoid middlemen because an organization can get immediate feedb ack from its customers and this will also ensure healthy customer relation. She further talked about longer distribution channel that may be used for durable go ods as they take a longer period before they expire. If the market for a product is unpredictable, the producer may opt to sell through middlemen who will share the risks involved as opposed to a producer shouldering all the risks. If a dis tribution channel has many middlemen, then the final price paid by the consumer for the commodity will be high. The government should also put checks on the use of certain distribution channels, especially where middlemen seem to exploit co nsumers. As much as

middlemen increase the price of a commodity, they do offer the advantage of stor ing and delivering goods to consumers thus freeing the distributor from some of the tasks. 10. Pedro Gondim, (2007) in his article Marketing in Counseling wrote a bout improving marketing through delivery. He describes the concept of service o ver delivery that provides a level of service beyond what youve promised your cli ent in your marketing message. According to him, the intention of service overde livery is to build goodwill with your clients. Its intended that this goodwill wi ll translate into business benefits for you. Those benefits may be longer client contracts, increased referral and stronger product endorsement. Generally, the perceived gain from over-delivering the service would be greater than the cost t o provide the additional benefit to the client. He further said that every inves tment requires a systematic approach in order to be successful and over-deliveri ng is not different. An organization will need to establish goals in order to me asure the outcomes of their efforts, and also to avoid having financial problems due to an ill planned promotion. One can include the following points in their over-delivery strategy: Establish primary objectives. Find a target market. Choo se your gift. Create protocols. 11. Bob Segal, (2007) in his article How to Motiv ate Sales Channel Partners with a Formal Planning Process said that in an ideal w orld, the key distributors would develop annual business plans for their product line and work closely with their distributor account managers to get the plans implemented. In reality, many manufacturers skip this planning effort altogether . The success of many manufacturers hinges on the actions of tens or even hundre ds of independent, mostly small, distributors. However, each distributor has dif ferent customer targets, different product mixes, and different sales and techni cal skills. Many lack strategic planning skills and marketing departments. A man ufacturer can hope for the best or use distributor plans to gain greater control over its

distribution destiny. According to him, most manufacturers don t have the capaci ty to handle hundreds of individual plans. Most of the manufacturers experience the 80:20 rules, where 80 percent of their revenue comes from 20 percent of thei r channel partners. At a minimum, suppliers should require plans from key partne rs. These plans should have highly customized content. However, the typical item s a manufacturer should expect, or even require, in a distributor plan might inc lude: Business background. Product/services summary. Customer mix. Marketing plan. Tra ining/personnel plan. Sales plan. Logistics plan. Financial plan. The annual meeting should take place between the account manager and the owner o r senior executive from the distributor. The actual meeting, to review last year s results and revise the plan for next year, will likely require two to four ho urs. In preparation, the account manager should review, in detail, the distribut or s sales history, local market trends/conditions, the manufacturers fulfillme nt of past commitments, new product plans, etc. 12. Thomas Cutler, (2006) in his article The Role of CRM for Distributors talked about the impact of globalization on distribution channels. He stated that globalization has made competition wit hin manufacturing fierce in recent years. Not only is cost effective, timely pro duction key to success, but streamlined procurement processes are also essential . Manufactured goods typically require collaboration with several partners, so o nly manufacturers that have highly efficient business processes will thrive and grow. According to Larry Caret sky, (CEO of Commerce CRM for Manufacturing and D istribution), What is needed is an intelligent, integrated, customizable applicat ion to connect the business

processes that increase visibility for effective decision making, and extend pro cesses to customers and supply chain channel partners. According to Caret sky, Mos t software companies entered the CRM market with a handful of basic products. Ho wever, end-user companies found these products didnt always meet their unique nee ds, resulting in a low success rate, which discouraged company leaders. So, soft ware vendors came out with variations of CRM software designed to meet a broader range of needs, with varying degrees of success. CRM software is only successfu l when it helps a company manage relationships with its customers. 13. Gopinatha n Thachappilly, (2009) in his article How Business Distribute Products to consume rs says that selecting a distribution channel is a major business decision. He sa ys that the distribution method an organization select can significantly impact on customer satisfaction, as well as marketing costs of the organization. If pro ducts are available in the right assortment and quantities at the right place an d time to the customer, the organization gains a distinct competitive advantage. On the other hand, if prospective customers cannot find widely publicized produ ct at a convenient outlet, organization stand to lose large volumes of sales. Di stribution of the product is thus a strategic issue, as well as a practical one intended to get the product to the final consumer. He further talked about the d istribution logistics where physical goods have to be moved from a point of orig in to points of consumption, issues of storage, handling and transportation come into the picture. This can prove a complex exercise where the variety and quant ity involved are large. It will involve: Moving the right assortment of merchandise in right quantities. Using the right kinds of transport vehicles considering the nature of goods and speed of deliver y. Routing and scheduling the movement to minimize overall transport costs. Ensu ring that the merchandise is received at the destinations when needed. Computer based logistics management solutions can be used to handle the complexities invo lved.

14. Biggso, in his article The Network Marketing Strategy put emphasis on distribu tion through local distributors. According to him, network marketing aims at hel ping the manufacturers market their products to the end consumers via independen t local distributors. By engaging local distributors to market the products of t he company, the company is able to generate more income and save on distribution and advertising cost. As most companies would spend thousands of dollars to pro mote their products through TV commercials and advertising, billboards and other forms of media. Promoting products and brands could cost the company a lot of m oney that a good portion of the cost that you pay for a certain product is actua lly added in to defray the advertising and promotion expenses. Since the network marketing strategy will do away the promotion and advertising cost by engaging local distributors to personally promote the products to the their friends, rela tives and colleagues, the company will now be able to give the distributors big commissions. In most instances, the network marketing company will give the loca l distributors direct commissions of up to 30% of the sales generated by a local distributor. 15. According to Wharton School of the University of Pennsylvania, who published an article in (2001), about Changing Channel Distribution Models in the internet age. The author in this article said that the adoption of channel power has mean t a seismic shift in the relationships between consumers, retailers, distributor s, manufacturers and service providers. It presents many companies with the opti on of reducing or eliminating the role of intermediaries and lets those provider s transact directly with their customers. According to Eric K. Clemons, Wharton professor of operations and information management, says that direct distributio n offers a company significant opportunities, but it also can present "numerous strategic uncertainties. He suggests that before launching an e-commerce effort and bypassing its traditional distribution channels, a business should analyze w hich products are appropriate for electronic distribution, which consumer activi ties will be supported by which channel participants, and which segments or grou ps of consumers are likely to adopt electronic distribution.

2.1 Theoretical Framework A theoretical framework is conceptual model of how the theory makes sense of rel ationship among several factors that have been identified important for the prob lem. This conceptual framework helps to study various variables and relationship s among them whether they are positive or negative. The variables which we are g oing to study in our research work are dependent, independent and moderating var iables. Before going into the practical demonstration of variables through flow chart, first we have to list and define the purpose of the each variable that wi ll be used in the research. List of Factors Effective Distribution Distribution Channels (Wholesalers, Retai lers) Availability and Accessibility Price Time Competitors Customers of the org anization Distribution Logistics Training, Communication & Discount Pricing Stru cture List of Variables Dependent Variable Independent Variable Independent Variable I ndependent Variable Independent Variable Independent Variable Independent Variab le Independent Variable Moderating Variables The dependent variable Effective Distribution is the variable of primary interest and to which the independent variables and moderating variables may cause to inf luence. The basic purpose because of which the above variables are taken is to a nalyze their influence either positive or negative, on the dependent variable. If we talk about the distribution channels, it can have a both positive and nega tive impact on the effective distribution of the products because distribution c hannels are influenced largely by the type and size of the business. If the dist ribution channels are according to the nature of the product and needs of the cu stomers than it has a

positive relationship with the dependent variable and if it the distribution net work is not according to the nature of the product than distribution effectivene ss decreases and it has a negative relationship with the dependent variable. Talking about availability and accessibility of the products, if products are ph ysically not available or cannot easily accessible then how they are going to be purchased. The most important and vital part of administrating and selling the products is deciding how they will be distributed; this affects the costs, price and profit of the products; as well as affecting how accessible they are for cu stomers. The price is also an important factor that has an impact on the effective distri bution because if the prices of the products are high, there is no demand in the market for the particular product so it has a negative relationship with the de pendent variable so the prices of the products should be affordable for customer s so that it will create a positive relationship with the effective distribution and it is only possible when there is a demand in the market and prices are aff ordable for the customers. If we talk about time, it is also a very important independent variable that has a major impact on the effective distribution because distribution is all about getting the products / services to the right people at the right time with speci al consideration for profit and effectiveness. If products are available in the right assortment and quantities at the right place and time to the customer, the organization gains a distinct competitive advantage. Competitors have a great influence on the effective distribution system of the o rganization and the organization should consider the distribution routes used by their closest competitors to analyze that whether they are using the most effec tive channels or not. If an organization will keep her eye on the competitors th en they can have more effective distribution system otherwise both the variables have a negative relationship with each other. The target and potential customers of an organization also plays an important ro le in the distribution channels selected by the organization. If organizations a re selling directly to the end user, they probably have more options than if the y are targeting

distributors to market their product. If product is new to the market, consider where the target market currently purchases similar products. If it is easier fo r the customers to buy from you rather than your competitors, they will come. Di stribution logistics plays an important role in effective distribution because d istribution logistics are the current that makes that channel flow and distribut ion logistics in any warehouse distribution system should be viewed in much the same way individual workers are viewed. It requires more care and attention of a nything in the distribution chain. So in this manner it has a positive relations hip with the effective distribution. Now at the end we talk about the moderating variables that have a strong conting ent effect on the moderating independent variable-dependent variable relationshi p. These are Training, Communication and Discount Pricing variables Structures . The presence of the third variable (Moderating Variable) modifies the original relationship between the independent and dependent variables. Sales tr aining and communicating with channel members ensures that the complete marketin g campaign is carried out on time. Without this integration of marketing and pro motional materials, and the coordinated timing of their delivery to retail and w holesale locations, the retail advertising campaign won't achieve the results de sired. This training also helps the key distributors in developing annual busine ss plans for their product line and work closely with their distributor account managers to get the plans implemented. As each distributor have different custom er targets, different product mixes, and different sales and technical skills, s o they have to do their best to gain greater control over its distribution desti ny. So the training and communication with the channel partners can also enhance the relationship between independent and dependent variables. Discount Pricing Structure is an also an important moderating variable that can entirely change t he relationships between dependent and independent variables because if companie s are avoiding making changes to their discount structures, fearing that the end result will be perceived as either "a price increase" (which will reduce unit s ales) or a "a price decrease" (which will reduce profitability), so it has a neg ative impact on the effective distribution. For a positive relationship among va riables there should be a well-designed distributor discount pricing structure w hich helps in achieving marketing objectives set by the organizations and that a lso compensates the distributor for performing marketing functions (and the cost s associated with performing these functions).

The research framework of an effective distribution is therefore depicted as fol lows: Research Framework Distribution Channels (Retailers and Distributors) Availability and Accessibility Price Time Effective Distribution Competitors Dependent Variable Customers of the Organization Training, Communication and Discount Pricing Structure Distribution Logistics Independent Variables Moderating Variables

Chapter 3 Research Methodology

3. Research Methodology Research Design In our research project we will use various tools of exploratory research. This research will be done to gain background information of the problem. An initial research will be conducted to clarify and define the nature of the problem. Desc riptive research will be done where questionnaires will be given to the responde nts to analyze the distribution effectiveness. o Define needed information

The needed information is to analyze the distribution system of different ice cr eam companies.

The research will be conducted in the sample distribution channels and warehouse s of different ice cream companies.

Following ice cream companies have been taken as a sample from Punjab region to conduct the research. Walls. Hico. Omore. Yummy. Gourmet. o Specify measurement and scaling procedures Graphs, tables, diagrams and other data presentation techniques to be used to measure the results to conclude.

o Construct and pretest questionnaire The questionnaire should be prepared while reviewing the objectives to be achieved, discussions with the instructors, maki ng of the questionnaire according to the research problems and finally approved by the instructor. Sample The sample size on which we will conducted our research is approximately consist s of 70 respondents which includes retailers and distributors of the above menti oned ice cream companies. The sample includes managers, workers and other employ ees of those distribution channels. o Sampling Technique We will use the technique of random sampling in our researc h. o Sampling procedure Sample size should be categorized and represents the who le population. Data collection Data will be collected through primary and secondary resources. The source for p rimary data will be distributors and retailers. The source for secondary data wi ll be the articles published by different magazines, journals newspapers, text b ooks etc. Direct personal structured and unstructured interviews with samples re spondents will be conducted so the data collected will be first hand and origina l in character. o Tool/instrument of data collection Comprehensive questionnaire s will be used to collect the desired information. We will design different ques tionnaires for retailers and

distributors so that we can get first handed and accurate information from them about the effective distribution system of the company. Pretesting of questionna ire will be carried out to determine how it will serve the purpose of obtaining needed data.

Questionnaire Design The questionnaire consists of predominantly closed ended an d option based question in order to provide some ease to the respondents. In ord er to make the questionnaire more effective following points are covered: Uniformity in questions. Reduce subjectivity. Easier to receive response. Less t ime consuming. The questions tried to cover all aspects required to analyze the effective distribution system of each company. Data Analysis Procedure Data collected through the questionnaires will be analyzed and interpreted. The statistics analysis will be carried out with the help of computer software Micro soft Excel 2007 and descriptive statistics .The relevant data which we will get from various other sources will also add more value in our result interpretation .

Chapter 4 Data Analysis & Presentation

Data Analysis of Retailers

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

Interpretation: From our survey, we have observed that 55% of the retailers are associated with Walls, 13% with Yummy,3% with Hico, 22% with Omore, 5% with Gourme t and others include only 2%.

Question 1 60% 50% 40% 30% 20% 10% 0% Series 1 Wall s 55% Yummy 13% Hico 3% Omore met 5% Others 2%

22% Gour

Q 2):- From how long you are associated with the company? Question 2 120% 100% 80% 60% 40% 20% 0% 0-5 years 5-10 years 10-15 years Above 15 years Wal l s 61% 39% 0% 0% Yummy 12% 25% 63% 0% Hico 50% 50% 0% 0% Omore 100% 0% 0% 0% G ourmet 33% 67% 0% 0% Others 100% 0% 0% 0% Interpretation: This graph shows the association of retailers with different ice -cream companies. From our conducted survey we have found that 61% of the retail ers of Walls are associated with the company from last 0-5 years and 39% retailer s are associated from last 5-10 years. Similarly, the maximum retailers of the Y ummy i.e. 63% are associated from last 10-15 years which shows the company has a good relation with its intermediaries.12% are associated from last 0-5 years an d 25% retailers are associated with Yummy from 5-10 years. If we talk about Hico , 50% of the retailers are associated from last 5 years and 50% are from last 510 years. In Omore, all the retailers are associated from last 1 year because thi s company is new in the market. 33% of the Gourmet retailers are associated from last 5 years and 67% are from last 10 years with the company. Others include th e company who manufacture ice-cream locally so thats why they are associated from last 5 years.

Q 3):- Are you satisfied with quality of the products offered by the company? Question 3 120% 100% 80% 60% 40% 20% 0% Yes No Wall s 100% 0% Yummy 87% 13% Hico 50% 50% Om ore 100% 0% Gourmet 100% 0% Others 100% 0% Interpretation: In this question we wanted to analyze the satisfaction level of the retailers about the quality of the products offered by the companies. From t he results we concluded that all the retailers of Walls are satisfied with the qu ality of the products. 87% of the retailers of Yummy are satisfied while 13% are not. From Hico retialers we got mix responses because 50% are satisfied and 50% are not satified with the quality of the products. The retailers of Omore, Gourm et and others are 100% satisfied with the quality of the products.

Q 4):- Are you satisfied with the delivery / distribution services provided by t he company? Question 4 120% 100% 80% 60% 40% 20% 0% Highly Satisfied Satisfied Neutral Dissatisfied Hig hly Dissatisfied Wall s 73% 24% 0% 0% 3% Yummy 13% 75% 12% 0% 0% Hico 100% 0% 0% 0% 0% Omore 8% 92% 0% 0% 0% Gourmet 100% 0% 0% 0% 0% Others 100% 0% 0% 0% 0% Interpretation: This question is asked from the retailers about the current deli very and distribution system of the companies they are associated with. The abov e graph shows the satisfaction level of the retailers about different companies. The results show that 73% of retailers of Walls are highly satisfied with the di stribution system. Similarly Hico, Gourmet and others are also highly satisfied with the current delivery system. 75% retailers of Yummy and 92% retailers of Om ore are satisfied with current delivery system of the companies.

Q 5):- Are you satisfied with the performance of the sales person of the company ? Question 5 120% 100% 80% 60% 40% 20% 0% Highly Sarisfied Satisfied Neutral Dissatisfied Hig hly Dissatisfied Wall s 21% 76% 0% 0% 3% Yummy 0% 87% 13% 0% 0% Hico 50% 50% 0% 0% 0% Omore 8% 92% 0% 0% 0% Gourmet 100% 0% 0% 0% 0% Others 100% 0% 0% 0% 0% Interpretation: The above graph shows the satisfaction level of the retailers ab out the performance of the sales persons of the company whether the sales person s perform their duties honestly or not and whether they are cooperative with the retailers or not. So in the results the retailers who are associated with diffe rent companies shows their satisfaction level for the sales persons of their resp ective companies.

Q 6):- What is your opinion regarding the sales persons frequency of visits in a month? Question 6 120% 100% 80% 60% 40% 20% 0% Regular Adequate Inadequate Wall s 94% 3% 3% Yummy 88% 12% 13% Hico 0% 100% 0% Omore 8% 92% 0% Gourmet 100% 0% 0% Others 100% 0% 0 % Interpretation: This question is asked from the retailers who are associated wit h different companies about sales persons frequency of visits in a month to the r etailer. From the results we concluded that the sales persons of every company v isit the retailer regularly. We also found that the 13% retailers of Yummy respo nd that the visits of the sales persons from Yummy are inadequate.

Q 7):- Evaluate the delivery system of company on following parameters. Question 7 "Timeliness of Order" 120% 100% 80% 60% 40% 20% 0% In time delivery Delay Very Delay Wall s 85% 9% 6% Yummy 75% 25% 0% Hico 50% 50% 0% Omore 84% 16% 0% Gourmet 100% 0% 0% Others 100 % 0% 0% Interpretation: The graphs show whether the retailers receive the delivery in ti me or every time they have to face some problems regarding the delivery of the p roducts. From the results we have concluded that almost all the companies delive r the products in time to the retailers end. But we have also seen that sometimes there is a delay from the companies in delivering the products in time but this thing happens very rarely.

Question 7 "Completeness of Order" 120% 100% 80% 60% 40% 20% 0% Fully Completed Partially Completed Not Completed W all s 85% 12% 3% Yummy 50% 50% 0% Hico 50% 50% 0% Omore 69% 31% 0% Gourmet 100% 0% 0% Others 100% 0% 0% Interpretation: The graph shows whether the retailers receive the orders complet ely or not which they have placed to the distributors or directly to the compani es. From the results we have concluded that almost all the companies deliver the products completely to the retailers. But we have also seen that sometimes the order is partially completed due some unexpected reasons but it happens rarely.

Q 8):- Are you satisfied with the current commission system given by the company ? Question 8 120% 100% 80% 60% 40% 20% 0% Highly Sarisfied Satisfied Neutral Dissatisfied Hig hly Dissatisfied Wall s 15% 70% 3% 6% 6% Yummy 63% 37% 0% 0% 0% Hico 0% 100% 0% 0% 0% Omore 0% 77% 15% 8% 0% Gourmet 100% 0% 0% 0% 0% Others 100% 0% 0% 0% 0% Interpretation: The above graph shows the satisfaction level of the retailers ab out the commission system given by the company. From our results we concluded th at the retailers have mix opinions about the commissions given by the company. S ome retailers are highly satisfied while we have also found some highly dissatis fied retailers who are not happy with the current commission system.

Q 9):- How often do you find that expired products are supplied to you? Question 9 120% 100% 80% 60% 40% 20% 0% Mostly Rarely Sometimes Never Wall s 0% 0% 15% 85% Yummy 0% 0% 0% 100% Hico 0% 0% 50% 50% Omore 0% 0% 16% 84% Gourmet 0% 0% 33% 67 % Others 0% 0% 0% 100% Interpretation: This question is asked from the retailers to know whether they r eceive expired or defective products from their respective companies. From the r esults we observed that mostly the companies deliver new stock to the retailers but sometimes the retailers also receive some defective and expired products fro m those companies.

Q 10):- What is the proportion of defective / expired products in total quantity supplied to you? Question 10 120% 100% 80% 60% 40% 20% 0% 0-2% 2-4% 4-6% Above 6% Wall s 100% 0% 0% 0% Yummy 87% 13% 0% 0% Hico 50% 50% 0% 0% Omore 85% 15% 0% 0% Gourmet 100% 0% 0% 0% Othe rs 100% 0% 0% 0% Interpretation: This graph shows if the retailers receive expired, out-dated and defective products then in what quantity they receive such products. We found t hat the percentage of such type of products is not more than 2-4 % of the total products delivered to the retailers.

Q 11):- Which are the trade promotion schemes that you like the most? Question 11 80% 70% 60% 50% 40% 30% 20% 10% 0% Gift Articles Series 1 7% Cash Discounts 75% Bonus Packs 5% Coupons/ Contests 3% Tours 8% Others 2% Interpretation: This question is asked from the retailers in order to know that what kind of trade promotional schemes they like the most. From the results we c oncluded that 75% of the retailers like cash discounts, 7% like gift articles, 5 % bonus packs, 3% coupons and 8% like tours offered by the companies.

Q 12):- Evaluate the company on following parameters / activities? Question 12 "Wall s" 70% 60% 50% 40% 30% 20% 10% 0% Order Taking Very Good Good Satisfactory Poor Ver y Poor 25% 50% 25% 0% 0% Billing/ Documenta tion 63% 25% 12% 0% 0% Credit Period 0% 0% 25% 12% 63% Market Support 0% 50% 38% 12% 0% Profit Margin 63% 12% 25% 0% 0% Claim Adjustment 25% 36% 39% 0% 0% Interpretation: The above graph shows the evaluation of different activities of Walls company. The activities includes: Order taking, Billing/Documentation, Cred it period, Market Support, Profit margin and claim adjustment. The retailers of Walls company evaluated all the activities according to their satisfaction level with each of the activity.

Question 12 "Yummy" 70% 60% 50% 40% 30% 20% 10% 0% Order Taking Very Good Good Satisfactory Poor Ver y Poor 25% 50% 25% 0% 0% Billing/ Documenta tion 63% 25% 12% 0% 0% Credit Period 0% 0% 25% 12% 63% Market Support 0% 50% 38% 12% 0% Profit Margin 63% 12% 25% 0% 0% Claim Adjustment 25% 36% 39% 0% 0% Interpretation: The above graph shows Yummy. The activities includes: Order od, Market Support, Profit margin and valuated all the activities according he activity. the evaluation of different activities of taking, Billing/Documentation, Credit peri claim adjustment. The retailers of Yummy e to their satisfaction level with each of t

Question 12 "Hico" 120% 100% 80% 60% 40% 20% 0% Order Taking Very Good Good Satisfactory Poor Very Poor 50% 0% 50% 0% 0% Billing/ Documenta tion 0% 100% 0% 0% 0% Credit Period 0% 0% 100% 0% 0% Market Support 0% 50% 0% 50% 0% Profit Margin 50% 0% 50% 0% 0% Claim Adjustment 50% 0% 50% 0% 0% Interpretation: The above graph shows the evaluation of different activities of Hico. The activities includes: Order taking, Billing/Documentation, Credit perio d, Market Support, Profit margin and claim adjustment. The retailers of Hico eva luated all the activities according to their satisfaction level with each of the activity.

Question 12 "Omore" 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Order Taking Very Good Good Satisfactory Poor Very Poor 23% 77% 0% 0% 0% Billing/ Documenta tion 54% 46% 0% 0% 0% Credit Period 0% 0% 0% 31% 69% Market Support 0% 46% 46% 8% 0% Profit Margin 8% 77% 15% 0% 0% Claim Adjustment 15% 62% 15% 8% 0% Interpretation: The above graph shows the evaluation of different activities of Omore. The activities includes: Order taking, Billing/Documentation, Credit perio d, Market Support, Profit margin and claim adjustment. The retailers of Omore com pany evaluated all the activities according to their satisfaction level with eac h of the activity.

Question 12 "Gourmet" 120% 100% 80% 60% 40% 20% 0% Order Taking Very Good Good Satisfactory Poor Very Poor 33% 67% 0% 0% 0% Billing/ Documenta tion 0% 100% 0% 0% 0% Credit Period 0% 100% 0% 0% 0% Market Support 100% 0% 0% 0% 0% Profit Margin 67% 33% 0% 0% 0% Claim Adjustment 100% 0% 0% 0% 0% Interpretation: The above graph shows the evaluation of different activities of Goumet. The activities includes: Order taking, Billing/Documentation, Credit per iod, Market Support, Profit margin and claim adjustment. The retailers of Gourme t evaluated all the activities according to their satisfaction level with each o f the activity.

Question 12 "Others" 120% 100% 80% 60% 40% 20% 0% Order Taking Very Good Good Satisfactory Poor Very Poor 100% 0% 0% 0% 0% Billing/ Documenta tion 100% 0% 0% 0% 0% Credit Period 100% 0% 0% 0% 0% Market Support 100% 0% 0% 0% 0% Profit Margin 100% 0% 0% 0% 0% Claim Adjustment 100% 0% 0% 0% 0% Interpretation: The above graph shows the evaluation of different activities of those companies who produce their own ice-cream locally. The activities includes : Order taking, Billing/Documentation, Credit period, Market Support, Profit mar gin and claim adjustment. The retailers of these types of companies evaluated al l the activities according to their satisfaction level with each of the activity .

Data Analysis of Distributors

Q 1):- Which of the following companies you are associated with? Question 1 6 5 4 3 2 1 0 Series 1 Wall s 4 Yummy 2 Hico 1 Omore 2 Gourmet 1 Others 0 Interpretation: From our survey of distributors, we have got responses from diff erent distributors. Our survey covered 4 distributors of Walls, 2 from Yummy, 1 f rom Hico, 2 from Omore and 1 from Gourmet.

Q 2):- From how long you are associated with the company? Question 2 6 5 4 3 2 1 0 0-5 years 5-10 years 10-15 years Above 15 years Wall s 1 3 0 0 Yum my 0 0 2 0 Hico 0 1 0 0 Omore 2 0 0 0 Gourmet 0 1 0 0 Others 0 0 0 0 Interpretation: From the results of this question, we concluded that 1 distribut or of Walls has an association with the company from last 5 years and 3 distribut ors has an association from last 10-15 years. Similarly, both distributors of Yu mmy has an association from last 10-15 years. Hico distributor has an associatio n from last 10 years. As Omore is new company so the distributors have an associa tion from last 1 year. The distributor of Gourmet has an association from last 5 -10 years.

Q 3):- Are you satisfied with quality of the products offered by the company? Question 3 6 5 4 3 2 1 0 Yes No Wall s 4 0 Yummy 2 0 Hico 1 0 Omore 2 0 Gourmet 1 0 Others 0 0 Interpretation: In this question we wanted to analyze the satisfaction level of the distributors about the quality of the products offered by the companies. Fro m the results we concluded that all the distributors of Walls, Yummy, Hico, Omore, Goumet are satisfied with the quality of the products offered by their respecti ve companies.

Q 4):- How many retailers purchase products from your distribution or warehouse? Question 4 6 5 4 3 2 1 0 0-1000 1000-1500 1500-2000 2000-3000 Above 3000 Wall s 0 1 1 2 0 Y ummy 0 0 2 0 0 Hico 0 0 1 0 0 Omore 0 2 0 0 0 Gourmet 1 0 0 0 0 Others 0 0 0 0 0 Interpretation: This question is asked from the distributors in order to get the accurate information about the retailers to whom they are supplying and deliver ing the products. The result in the graph shows the number of retailers each dis tributor is currently having with them.

Q 5):- What are the methods and ways opted for the distribution of the products to your customers? Ans:- In the questionnaire we asked this question as an open ended question from the distributors. The distributors of all the companies prov ide their own methods and ways distribution which they are currently using to di stribute the products to the retailers. From the results we concluded that the c ompanies use their efficient field forces or sales persons in order to get order s from the retailers, and all of them use their own logistics support to distrib ute the products to the retailers. Q 6):- What are the different distribution flaws faced during the process of dis tribution? Ans:- When we asked this question from the distributors in order to know that wh at type of flaws that they are facing in the process of distribution. From the r esponses we concluded that the flaws which are faced by them include shortage of human resources which sometimes delay the orders of the customers, and this als o reduces the recovery from the creditors. The other major flaw they are facing is the replacing of the damaged products. Both of these flaws are actually faced by distributors of Hico, and Yummy because they have very less number of human resources available and they have a less logistics support. On the other hand, W alls, Omore and Gourmet are doing very well because they have a well organized and well balanced distribution system. Q 7):- How the orders of the products are processed by your distribution or ware house at the channel level? Ans:- The distributors of Walls, Yummy and Omore rece ives an order from the retailers and they forward their requests to the company and when they receive the requested order from the company, they deliver it to t he retailers. While in case of Hico and Gourmet, they supply the products direct ly from the company or factory so the retailers have to submit their requests an d order

directly to the company or factory and then the required products are delivered to them. Q 8):- What is the average order-cycle time given to the retailer? Question 8 6 5 4 3 2 1 0 Less than 5 Days 5-10 Days More than 10 Days Wall s 4 0 0 Yummy 0 2 0 Hico 0 0 1 Omore 2 0 0 Gourmet 1 0 0 Others 0 0 0 Interpretation: This graph shows the average order cycle time given to the retailers by the dist ributors. From the results we concluded that the distributors of Walls, Omore and Gourmet complete the orders within 5 days, the distributors of Yummy take maximu m of 10 days to complete the orders and Hico take more than 10 days to complete the orders of the retailers.

Q 9):- Do you have your own logistics for the distribution of the products? Question 9 6 5 4 3 2 1 0 Yes No Wall s 4 0 Yummy 2 0 Hico 1 0 Omore 2 0 Gourmet 1 0 Others 0 0 Interpretation: From the results we concluded that all of the ice-cream companies have their own personal logistics support to deliver and supply products to the retailers.

Q 10:- Do you replace the expired and out-dated products? Question 10 6 5 4 3 2 1 0 Yes No Wall s 4 0 Yummy 2 0 Hico 1 0 Omore 2 0 Gourmet 1 0 Others 0 0 Interpretation: The result of this question shows that all the distributors of different compani es replace the out-dated, expired and damaged products.

Q 11:- Approximately how much of your order from your customers are impacted / a ffected due to defective / expired products? Question 11 6 5 4 3 2 1 0 0-5% 5-10% 10-15% 15-20% Wall s 4 0 0 0 Yummy 2 0 0 0 Hico 1 0 0 0 Omore 2 0 0 0 Gourmet 1 0 0 0 Others 0 0 0 0 Interpretation: According to the responses of the distributors, the orders of the retailers are only affected 0-5 % due to the damaged, out-dated and expired products.

Q 12:- Do you face any type of complaints from retailers regarding your distribu tion system? Question 12 6 5 4 3 2 1 0 Yes No Wall s 4 0 Yummy 2 0 Hico 1 0 Omore 2 0 Gourmet 1 0 Others 0 0 Interpretation: Yes, all the distributors agreed that they always receive complaints from their retailers. When we asked about the type of complaints, almost all of the distrib utors responded that the complaints are about the Time consume for the delivery o f the products, unavailability or shortage against the demand in order, product softness and completeness of orders because sometimes, Hico and Yummy are unable to complete the orders in the given time period due to less logistics support an d less human resources.

Chapter 5 Conclusions & Recommendations

5.1. Conclusions The conclusions drawn from the project study are as follows: s of each ice-cream company surveyed in order to make a comparative analysis of the distribution system. 41% of the retailers and 70% of the distributors have a strong and long term association i.e. (10-15 Years) with their respective compa nies. 59% of the retailers and 30% of the distributors are associated with their companies for last 5 years. Approx 89% of the retailers and almost all the dist ributors are satisfied with the quality of the products offered by their compani es. Only 11% of the retailers are not satisfied with the quality of the products offered by their respective companies. distributors are highly satisfied. Also, approx. 32% of the retailers are just s atisfied by the distribution services. 2% retailers are neutral because they are neither satisfied nor dissatisfied with the distribution services. Only 1% of t he retailers are highly dissatisfied with the current distribution services prov ided to them. Almost all the distributors have efficient sales force and their v isits to retailers for order taking is also regular and adequate. Companies are providing timely and accurate deliveries of products to the retailer's but the s ometimes the completeness of orders are not maintained properly. According to re tailers they say that sometimes company sends more of the same brand or less of the same or sometimes the entire order is not according to prescribe order quant ity. It shows that deliver system is efficient and effective but the dispatching is the area where company needs to improve. There are some definite problems wi th the commission system and commission paid to retailers by the company. Majori ty of retailers are satisfied

by commission system but there are also some retailers who are highly dissatisfi ed with the current commission systems of the company. Proportion of defective, out-dated and expired product is less which shows effectiveness of product handl ing, efficiency of delivery mechanism and the quality and packaging standard's t hat the companies follow. Most retailers preferred trade promotion is Cash Disco unt, followed by Tours at 2nd, Gift Articles at 3rd, Bonus Pack's at 4th & Coupo ns at 5th ranking. Credit period & profit margin allotted to retailers by the co mpany is perceived to be less and thus they are dissatisfied on this parameter. Claim settlement system of the companies is average because sometimes companies even Walls take more than two months to settle a claim from the retailers. 5.2. Recommendations We can sum the recommendations in brief as follows: Communications should be improved by fulfilling the demand of product by company . In the field, sales persons work independently and away from the office. Good communication requires interaction between those preparing and those receiving r eports. Company should make plans and impart training to the salesperson to enha nce their performance. Aggressive marketing by market developer for increasing t he sales volume. Regular visit to distributors and retailers for better co-ordin ation. Improve the market share by: o Providing efficient & effective distributi on. o Catering to busy retailers at least 3 times a week. Company should adhere to and implement the customers suggestions and complaints about products, service policies, price changes, advertising, etc.

Increase in the number of sales vehicles. Provide better schemes & services in o rder to gain market share. Another Market research is required specifically on B rand v/s Competitions v/s Commission paid to retailers. Companies need to make a n efficient and faster claim settlement system.

Annexure

QUESTIONNAIRE (For Retailers) Name: _______________ Gender: Male Female Age: __________Years Contact #:________________ Q 1):- Which of the following companies you are associated with? Walls Hico Gourm et Yummy Omore Others ____________ Q 2):- From how long you are associated with the company? 05 Years Walls Yummy Hic o Omore Gourmet Others 5 10 Years 10 15 Years Above 15 Years Q 3):- Are you satisfied with quality of the products offered by the company? Ye s Walls Yummy Hico Omore Gourmet Others No

Q 4):- Are you satisfied with the delivery / distribution services provided by t he company? Highly Satisfied Walls Yummy Hico Omore Gourmet Others Satisfied Neutral Dissatisfied Highly Dissatisfied Q 5):- Are you satisfied with the performance of the sales person of the company ? Highly Satisfied Walls Yummy Hico Omore Gourmet Others Satisfied Neutral Dissatisfied Highly Dissatisfied Q 6):- What is your opinion regarding the sales persons frequency of visits in a month? Criteria for visits in a month Inadequate Adequate Walls Yummy Hico Omore Gourmet Others Regular

Q 7):- Evaluate the delivery system of company on following parameters. Timeliness of Order 1= In time, 2= Delay & 3= Very Delay Completeness of Order 1= Completed, 2= Partially Completed 3= Not Completed Walls Yummy Hico Omore Gourmet Others Q 8):- Are you satisfied with the current commission system given by the company ? Highly Satisfied Walls Yummy Hico Omore Gourmet Others Satisfied Neutral Dissatisfied Highly Dissatisfied Q 9):- How often do you find that expired products are supplied to you? Mostly Walls Yummy Hico Omore Gourmet Others Rarely Sometimes Never

Q 10):- What is the proportion of defective / expired products in total quantity supplied to you? Mostly Walls Yummy Hico Omore Gourmet Others Rarely Sometimes Never Q 11):- Which are the trade promotion schemes that you like the most? Gift articles Cash discounts Bonus Packs Coupons/contest Tours Others __________ Q 12):- Evaluate the company on following parameters / activities? (1= Very Good, 2= Good, 3= Satisfactory, 4= Poor and 5= Very Poor) Walls Order Taking Billing / documentation Credit Period Market Support Profit Ma rgin Claims Adjustment Yummy Hico Omore Gourmet Others

QUESTIONNAIRE (For Distributors & Warehouses) Name: _______________ Gender: Male Female Age: __________Years Contact #:________________ Q 1):- Which of the following companies you are associated with? Walls Hico Gourm et Yummy Omore Others ____________ Q 2):- From how long you are associated with the company? 0 - 5 years 10-15 years 5 -10 years Above 15 years Q 3):- Are you satisfied with the quality of the products offered by the company ? Yes No Q 4):- How many retailers purchase products from your distribution or warehouse? a. Retailers in numbers

Q 5):- What are the methods and ways opted for the distribution of the products to your customers? _____________________________________________________________ _ ______________________________________________________________ _______________ _______________________________________________ ________________________________ ______________________________ _________________________________________________ _____________ Q 6):- What are the different distribution flaws faced during the process of dis tribution? ______________________________________________________________ ______ ________________________________________________________ _______________________ _______________________________________ ________________________________________ ______________________ _________________________________________________________ _____ Q 7):- How the orders of the products are processed by your distribution or ware house at the channel level? ____________________________________________________ __________ ______________________________________________________________ ______ ________________________________________________________ _______________________ _______________________________________ ________________________________________ ______________________ Q 8):- What is the average order-cycle time given to the retailer? Less than 5 Days 5 to 10 Days More than 10 Days Q 9):- Do you have your own logistics for the distribution of the products? Yes No

Q 10):- Do you replace the expired and out-dated products? Yes No Q 11):- Approximately how much of your order from your customers are impacted / affected due to defective / expired products? 0 - 5% 10 15% 5 - 10% 15 20% Q 12):- Do you face any type of complaints from retailers regarding your distrib ution system? Yes No If yes, what are the kinds of complaints and how do you manage them in a given s pan of time? ______________________________________________________________ ____ __________________________________________________________ _____________________ _________________________________________ ______________________________________ ________________________ _______________________________________________________ _______

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