Sid BBA

Download as pdf or txt
Download as pdf or txt
You are on page 1of 43

INTRODUCTION & OBJECTIVES

INTRODUCTION
The study examined channels of distribution models in the Sales performance of an
organization. Specifically the study assessed, the extent into which Direct distribution
channel affects sales performance.
A distribution channel is a chain of businesses or intermediaries through which a good or
service passes until it reaches the end consumer. It can include wholesalers, retailers,
distributors and even the internet itself.

Channels are broken into direct and indirect forms, with a "direct" channel allowing the
consumer to buy the good from the manufacturer, and an "indirect" channel allowing the
consumer to buy the good from a wholesaler or retailer.

In this research report Retailers are as unit of analysis. It had a sample of 30 respondents;
where by primary and secondary data were collected through the use of questionnaires.

BREAKING DOWN ' Distribution Channel'


A distribution channel is the path by which all goods and services must travel to arrive at the
intended consumer. Conversely it is also used to describe the pathway that payments make
from the end consumer to the original vendor. Distribution channels can be short or long and
depend on the amount of intermediaries required to deliver a product or service.

While increasing the number of ways in which a consumer can find a good can increase sales,
it can also create a complex system that sometimes makes distribution management difficult.
In addition, the longer the distribution channel, the less profit a manufacturer might get from
a sale due to the fact each intermediary charge for its service.
OBJECTIVES

 To study perception of retailer of given by Mapro


 To study the satisfaction on retailers on Mapro service
 To study the expectation on retailers on Mapro distribution channel

SCOPE

 Geographical scope – This study is conducted in the Latur city. All major parts of
the Latur city like Golai,Shivaji Nagar,Ashok Hotel,Mini Market,Nanded Naka etc...
Areas are covered.
 Conceptual Scope -The research was undertaken to gather information from the
respondents to know the customer reception and buying behavior which may impact
on sale of mapro product
COMPANY PROFILE
COMPANY PROFILE

Mapro Foods Pvt. Ltd manufactures and resells the natural


fruit products. It is one of the growing companies of India
which is situated at Panchgani Mahabaleshwar Road. It
produces jams, confectionaries, squashes, jellies, honey and
RTD and many more fruit products. Mapro Foods is a well-
known brand in jams and squashes. It is a family business started in 1959 by the Vora family.

Making jams from strawberries and raspberries. Mapro was one of the first to use traditional
ingredients to make plant-based beverage concentrates such as strawberry crush and rose
syrup.

The company was also the first in India to introduce pectin jellies and fruit sweets. It is the
fruit processing business over more than forty years and it is known for the innovation and
quality in the industry.

The Chief Executive Officer of the company is Mayur Vora. It has its manufacturing units in
Panchgani, Wahi, and Gurgaon. It is most likely to spread its operation in Delhi and
Pathankot. Most of Mapro's business is largely concentrated in the Western regions of India.
Mapro exports its products to about 12 countries through merchant distributors The annual
growth rate of the company is more than 50%. It earns 40%-50% profits from the sales of its
products.

The leading product of Mapro is Rose syrup (made from the rose petals and their extracts).
The machineries and other raw materials are imported from various countries like Egypt,
China, New Zealand, Australia, etc... There is more than 118000 metric tons of consumption
of the strawberry throughout the year. They manufacture luxury chocolates like Mazana
which is generally exported. Falero has a monopoly type of market and this product earns
more than 60% profit on its sales. This company grew without the help of any kind of
advertisement. It is known by its product and quality and not because of the external
advertisements. Mapro has been growing consistently at the rate of 25-30 per cent in the past
few years. The Company has expanded capacity to now produce 30000 MT of processed
frozen foods Products.

Estimated Annual Sales (USD): US$5 Million - US$10 Million. Mapro has achieved ISO-
HACCP, ISO-9001 status certified by BVQI. Future The Company is going to open its
manufacturing units in Delhi and Pathankot lately. It is also concentrating in expanding its
market to the other cities like Kanpur, Lucknow, and in Punjab. It is setting up a Frozen and
Fresh Food Distribution Chain in Indian Metros to service the fast growing modern
Organized Retail Supermarkets being set up in India. Where can we fit in Structure of
organization The Company is still a growing organization.

Management graduates with specialized knowledge in the food and agriculture industry
would be of immense need and value to the company. Apart of General Management,
Administration and Operations we can contribute with our expertise in following divisions
Purchasing Department Procurement (Local and International) Supply Chain Management
Marketing Department Formulating marketing plans/strategies for various products and
ventures.

Market Research Huge scope for brand building through advertisements and promotion.
Pricing Extending operations and distribution to other parts of the country Finance
Department Raising capital to aid growth.
3C’s OF “MAPRO”

COMPANY:

Mapro Foods Pvt. Ltd is the manufacturers and resellers of the natural fruit products. It is one
of the growing companies of India which is situated at Panchgani Mahableshwar Road.

It produces jams, confectionaries, squashes, jellies and RTD and many more fruit products.

It is the fruit processing business over more than forty.

The Chief Executive Officer of the company is Mayur Vora.

Mapro Foods is a well-known brand in jams and squashes. It is a family business started in
1959by the Vora family. .

CUSTOMERS:

In industrial sector the major customers of the company is the Wholesalers


Retailers and end users, these customers are aware about the company that company is
providing the quality product.

COMPETITORS:

 Kissan
 Haldiram
 Malas
PRODUCTS
PRODUCTS
Mapro produces a number of items ranging from jams, jellies, crushes, syrups, and fruit
family (RTD)etc. Their leading product is Rose Syrup, made from rose petals and their
extracts. The manufacturing process for most of their products is similar only differing in the
types of fruits used and the variations in cooking temperatures and pectin ratio.

Fruit sweets with real fruit jam:

These soft Fruity Sweets and Jelly Sweets are 100% vegetarian as they are made with pectin,
a fruit extract. They contain no Gelatin. Contain nutritious fruit juice & instant energy. Are an
instant hit with kids.

 Fruity sweets
 Jelly sweets
 Falchoos
 Jelly cubes
 Fruit cubes
 Fruit pebbles

Jam:

Whole range of delicious fruity jams are produced by Mapro


units in Panchgani and Wai. These jams are made with
certain specific fruits and fruit pulps as required by the
recipe. The various types produced involve:-

 Mango
 Orange marmalade
 Strawberry
 Pineapple
 Raspberry
Crush:

Ideal with milkshakes ice-creams, puddings, and desserts and new even mithai. This
bestseller makes milkshakes thicker and ice-creams richer.

 Strawberry crush
 Litchi crush
 Alphorns mango crush
 Mango crush
 Kiwi crush
 Kokum crush
 Pineapple crush

Syrup:

Syrups are made with pure contents for the exclusive natural flavors& properties. The Syrup
recipes are balanced to allow use in sherbats, milkshakes, faloodas and even ice-cream
toppings.

 Rose syrup
 Khus syrup
 Thandai syrup
 Mahakool syrup
 Strawberry syrup
 Kiser syrup
 Pineapple syrup
 Squash:

Mapro Squashes with their high fruit content are terrific for
Sherbets and Fruit Punch.

 Orange squash
 Lemon squash
 Lemon barley water
 Strawberry squash
 Lime juice cordial
 Lemon ginger squash
 Strawberry cordial
 Pineapple cordial

Tomato Ketchup:-
 RTD fruit family: (New launch)

New product
COMPETITORS

Mapro Foods Pvt. Ltd is in food business which is highly and rapidly growing business & has
few competitors also. Some of them are listed below:

Haldiram:
Manufacturing of Syrups & exports of the syrups.

Kissan:
In jams, Mapro Foods Pvt. Ltd is close second to Kissan in market.

Malas:
It manufactures jam, crush, squash, cordials, syrups which is same as the manufacturing of
Mapro Foods Private Limited

Surbhi:
Manufacturing of ketchup and jam
THEORETICAL BACKGROUND
THEORETICAL BACKGROUND

Marketing Channels:

“A marketing channel is a set of practices or activities necessary to transfer the ownership of


goods from the point of production to the point of consumption”.

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


service passes until it reaches the end consumer. It can include wholesalers, retailers,
distributors and even the internet itself.

It is the way products and services get to the end-user the consumers and are also known as
a distribution channel.

A marketing channel is a useful tool for management and is crucial to creating an effective
and well-planned marketing strategy.

Channel levels:

Zero Level Channel / Direct Marketing Channel – Consists of a manufacturer directly


selling to the end consumer. This might mean door to door sales, direct mails or
telemarketing.

One Level Channel – As the name suggests, the one level channel has an intermediary in
between the producer and the consumer. An example of this can be insurance in which there
is an insurance agent between the insurance company and the customer.

Two level Channel – Two level channel involves the movement of goods from the company
to an intermediary, from the intermediary to another and then to customer.

Three level Channels – Again observed in both the FMCG and the consumer durables
industry, the three level channels can combine the roles of a distributor on top of a dealer and
a retailer.
Three Types of Distribution Channels

While a distribution channel can sometimes seem endless, there are three main types of
channels, all of which include a combination of a producer, wholesaler, retailer and end
consumer.

The wine and adult beverage industry is a perfect example of this long distribution channel.
In this industry, thanks to laws born out of prohibition, a winery cannot sell directly to a
retailer. It operates in what is known as the three-tier system, meaning the winery is required
by law to first sell its product to a wholesaler, who then sells to a retailer. The retailer, in turn,
sells the product to the end consumer.

The second channel is one where the producer sells directly to a retailer, who then sells the
producer's product to the end consumer. This means the second channel contains only one
intermediary. for example, Dell is large enough where it can sell its products directly to
reputable retailers such as Best Buy.

The third and final channel is a direct to consumer model where the producer sells its product
directly to the end consumer. Amazon, using its own platform to sell Kindles to its customers,
is an example of a direct model, which is the shortest distribution channel possible.
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
Definition:

“A Research is a careful investigation or inquiry, especially through search for new facts in
any branch of knowledge”.

Sources of Data:

In Research Methodology mainly Data plays an important role.

This study is conducted by collecting and analyzing the data from Primary and Secondary
sources.

1. Primary Data.
2. Secondary Data.

Primary Data:

Primary Data is the data, which is collected with the help questionnaires.

Primary data was collected by administering the questionnaire to the marketing advisors of
Mapro Foods Ltd.

Secondary Data:

Secondary Data is collected from the various books, Reports, Company site, etc. The data
was also collected from the organization and sales representatives. The various Information is
taken out regarding that subject as well other subject from various sources. The last years
data stored is also being secondary data. This data is kept for the internal use of the
organization.
Secondary data was collected from the books, websites and through the interaction with the
individuals in the organization.

 The study is based on primary as well as secondary data.


 The primary data is collected through personal interviews of Retailers visiting stores.
 The Secondary data is collected from residential areas.

Research Design: Descriptive Research.

Sampling Methods: Convenience sampling method.

Sample Unit: Retailers.

Area: Pune.

Sample Size: Total sample size was 30.

Research Instrument: Questionnaire and observation


DATA ANALYSIS
DATA ANALYSIS

Q.1) Does distributor provides MAPRO products in required quantity and


time?

Particular No of Respondents Percentage


Yes 20 67%
No 10 33%
Total 30 100%

Response about Product Delivery


Yes No

33%

67%

Data analysis &Interpretation:

From the above pie chart it is observed that 67% of retailers are agree with the statement that
distributors are providing the delivery of the product in required quantity & time but 33% are
not agree with the statement that distributors are providing the products on right time &
quantity.

Q.2) at what frequency you get MAPRO products from distributor?

Particular No of Respondents Percentage

After 7 days
25 83%

After 15 days 03 10%


Within a month
02 07%
Total 30 100%

Frequency of product delivery


90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
After 7 days After 15 days Within a month

Data analysis &Interpretation:


 From the above bar chart it is observed that frequency for delivery of Mapro product
after every 7 days it is highest which is 83%
 10% on after every 15 days
 7% on each month.

Q.3) Do you get all variety of MAPRO products from distributor?

Particular No of Respondents Percentage


Yes 23 76.6%
No 7 23%
Total 30 100%

Do you get all variety of MAPRO products from


distributor?

no
23%

Yes
77%

Data analysis &Interpretation:

From the above pie chart it is observed that 76.6% of the retailers get all variety of the
product from distributor and23% of the retailers not get the products from distributor.
Q.4) Do you force consumer for purchasing MAPRO products?

Particular No of Respondents Percentage


Yes 03 10%
No 27 90%
Total 30 100%

Do you force consumer to purchase Mapro


products?

Yes
10%

No
90%

Data analysis &Interpretation:

From the above pie chart it is observed that 10% of the retailers push the Mapro product to
customer but 90% of the retailers do not force to purchase Mapro products.
Q.5) Are you selling any other similar product/brand?

Particular No of Respondents Percentage


Yes 25 83%
No 05 17%
Total 30 100%

Do you sale any other similar product?

No
17%

Yes
83%

Data analysis &Interpretation:

From the above pie chart it is observed that only 17% of the retailers sell similar product
which is less and 83% of the retailers not sell any similar products.
Q.6) what is the reason for keeping the other brands?

Particular No of Respondents Percentage


Price 08 27%
Commission 10 33%
Delivery 10 33%
Other 02 07%
Total 30 100%

Reason for keeping the other brand


35%
30%
25%
20%
15%

10%
5%
0%
Price Commission Delivery Other(Specify)

Data analysis &Interpretation:

 27% of respondents keep other brands on their store because of price.


 33% keep other brand to get good commission.
 33% of respondents keep because of on time delivery of other product
 7% of respondents have some other reasons to keep other brands in their store

Q.7) how is the consumer’s response for the MAPRO products?

No of
Particular Percentage
Respondents
High 08 27%
Medium 20 67%
Low 02 07%
Total 30 100%

Response for MAPRO products


80%
70%
60%
50%
40%
30%
20%
10%
0%
High Medium Low

Data analysis &Interpretation:

 From the above chart it is observed that 27% of respondents agree that consumer
gives high response towards Mapro product.
 67% of respondents agree that consumer gives medium response.
 Only 7% of respondents agree that consumer gives low response

Q.8) How many times a distributor visits your outlet per week?

Particular No of Respondents Percentage


Once 22 74%
Alternate Day 05 16%
Daily 03 10%
Total 30 100%

Frequency of destributor's visit to outlet


80%
70%
60%
50%
40%
30%
20%
10%
0%
Once Alternate day Daily

Data analysis &Interpretation:

 74% distributors visit outlets once in a week.


 16% visit at alternate day.
 And only 10% visit on daily basis.
Q.9) Rate your satisfaction level for the following

Particular No of Respondents Percentage


Rate of commission 05 17%
Service Quality 10 34%
Total sale 05 17%
Promotional material 02 07%
Offers & discounts 06 21%
Credit facility 02 07%
Total 30 100%

Satisfaction Level
40%
35%
30%
25%
20%
15%
10%
5%
0%
Rate of Service Quality Total sale Promotional Offers & Credit facility
commission material discounts

Data analysis &Interpretation:


From the above pie chart we can observe the satisfaction level of retailers for Mapro
products.

 Where 17% of retailers satisfy for the rate of commission which they get from Mapro.
 34% satisfy with service quality of Mapro distributor because of their own time
delivery for products.
 17% satisfy for total sale, 7% for promotional material, 21% for offers and discounts
and 7% for credit facility.
FINDINGS
FINDINGS

The study examined Effectiveness of channels of distribution models in the Sales


performance of an organization.

 From the market survey we got the information that customers are happy with the
product.

 A large number of respondents agree that distribution channel provides timely


information about goods and services available but very few of them not agree that
they get product delivery on time. It may be because company facing inventory
management problem

 Market demand is high because frequency of product delivery in market is probably


high for every 7 days.

 Retailers and the distributors are getting fewer margins.

 Company does not focus on the advertisement.

 Kissan is a big competitor of Mapro


CONCLUSIONS
CONCLUSIONS

In reference to the research objectives set, we can conclude that channel of distribution plays
a positive role on supply of Mapro (falero) products.

Distribution channel plays a very important role especially with respect to the FMCG
industry because if the product is not available on time consumes will switch on to other
brands and the company will lose its market share and hence an effective distribution channel
is the need of this industry.

In “make demand” situations, intermediaries and their personnel play a vital role in
generating sales for Mapro (falero) products. The capabilities of agents/distributors in
marketing and selling Mapro (falero) products impact end-customer behavior.

The importance of distribution functions within the channel management is high. Company’s
current conditions suggest that the role of agents is to make demand, leading to knowledge
sharing focused on developing selling points capabilities that facilitate general goals of
organization.
SUGGESTIONS
RECOMMENDATION
Suggestions/ Recommendations

 Company should focus on the advertisement other than Mahabaleshwar (which is


its producing are) so that it helps to increase their sales.
 Company should focus on the replacement policy i.e. tampered; expired or
defective products should be replaced immediately.
 Promotional activities should be well planned and conducted in prominent areas
such as
 Markets.
 School and colleges.
 Public places.
 Outside super markets
.
 Introductory offers or promotional perks can be inculcated.
 Medias like local newspapers (Sakaal, Punnya nagri, Lokmat)
Radio (Radio mirchi, etc.), and TV channels must be used.
 Eye catching banners, hoardings, pamphlets, slogans should be introduced.
BIBLIOGRAPHY
Bibliography

 Philip Kotler Marketing Management.


 http://www.mapro.com/mapro_history.htm
 http://www.mapro.com/mapro_quality.htm
 http://en.wikipedia.org/wiki/Mapro_Garden.
APPENDIX

Questionnaire for retailers


Name: __________________________________
Address: ___________________________________

1. Does distributor provide MAPRO (FALERO) products in required quantity and time?
a. Yes
b. No
2. At what frequency you get MAPRO (FALERO) products from distributor?
a. After 7 days
b. After 15 days
c. Within a month
3. Do you get all variety of MAPRO (FALERO) products from distributor?
a. Yes
b. No

If NO specify ____________________

4. Do you force consumer for purchasing MAPRO (FALERO) products?


a. Yes
b. No
5. Are you selling any other similar product/brand?
a. Yes
b. No

If Yes which out of below?

1. Juzt Jelly 2. Jelly Belly 3. Other

6. What is the reason for keeping the other brands?


a. Price b. Commission c. Delivery d. Other (Specify)
7. How is the consumer’s response for the MAPRO (FALERO) products?
a. High b. Medium c. Low
8. How many times a distributor visits your outlet per week?
a. Once b. alternate day c. daily

9. Rate your satisfaction level for the following

Sr. Attributes Highly Dissatisfied Neutral Satisfied Highly


No. Dissatisfied Satisfied
1 Rate of
commission
2 Service Quality
3 Total sale
4 Promotional
material
5 Offers &
discounts
6 Credit facility

Questionnaire for Distributors

Name: __________________________________
Address: ___________________________________

1. Why you have selected MAPRO (FALERO) brand for distribution?


a. Brand name b. Cheaper cost d. High demand e. Other (Pls
specify)

2. Is the company able to supply MAPRO (FALERO) products daily in time?

a. Yes b. No

3. Does the company provide required support to you for increasing sale?

a. Yes b. No

4. If yes then in which form it gives support?

a. Advertisement b. Higher discount c. Credit facility d. Other


(Please specify)

5. Are you using your own warehouse for storage purpose?

a. Yes b. No

6. Do you face any problem in company transportation system?

a. Yes b. No

7. Have you ever faced any conflict among you and other distributors?

a. Yes b. No

8. What type of distribution set up you have

a. through wholesalers b. Through retailers c. Direct to consumers e. partly


through wholesalers

9. Rate your satisfaction level for the following

Sr. Attributes Highly Dissatisfied Neutral satisfied Highly


No. Dissatisfied Satisfied
1 Rate of
commission
2 Service Quality
3 Total sale
4 Promotional
material
5 Offers &
discounts
6 Credit facility

You might also like