54990694 research thesis on comparative analysis of the distribution system of different ice cream...

8/3/2019 54990694 Research Thesis on Comparative Analysis of the Distribution System of Different Ice Cream Companies

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RESEARCH THESISComparative Analysis of Distribution System of Different Ice-cream Companies

Session October 2008 - January 2010

Undertaken ByUmer Ijaz Ahmed Raza Mustansar Hafeez Muhammed Ali Khan

L1F08MBAM1169 L1F08MBAM1166 L1F08MBAM1174 L1F08MBAM1187

Supervised ByProf. Nasir Riaz

Faculty of Management Sciences Punjab College of Business Administration 31- Main Gulberg Lahore


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DEDICATION

All praises belong to almighty Allah who is the supreme authority knows the ultimate relations underlying all sorts of phenomenon going on in this universe andwhose blessings and exaltation flourished our thoughts and ambitions to have thecherished fruit of our modest efforts in the form of doing this thesis. We alsooffer 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 Riaz who taught us with great affection and dedication and gave us the opportunityto understand how to do a research project. We feel proud to present this report to the scholar of the new modern era. He gave us prestigious knowledge about the 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 bosom friends of ours, who suffered uncomplainingly and plucked our courage during our long working hours. Thus with great love and appreciation, we dedicate this report to all the above-mentioned people and to all the readers of this report

.


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ABSTRACT

This research thesis is covering different issues and research problems with regard to current distribution system of different ice-cream companies. The main objective of this study lies in understanding the organization, understanding themarketing channels of the company and to correct its distribution activities aswell. 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 different activities for each icecream company, which clearly suggest what are the strength's of the company and where the company is lacking and what improvement it need to do in order to achieve high satisfaction level among the retailer's who are key in the distribution channel of the company. During the entire course of the project, different retailers and distributors were surveyed for analysis regarding distribution effectiveness. In the first part of the project, a surveyof selected outlets was conducted by taking interview of outlet owners or managers. We have collected important data using pre-designed questionnaire. By applying different statistical tools we have found some useful information, which willdefinitely help the company to improve the effectiveness of the distribution channel.

It was an excellent experience while working on the project. We have learnt about the environment and culture of the organization, its distribution structure; which will help us in our future endeavors in life. This report consists of fivechapters. The first chapter deals with Introduction of project, Essentials of Project study. The second chapter deals with Literature Review on the topic of distribution. The third chapter deals with Research Methodology, which includes datacollection and analysis techniques, and sample size for the research project. The fourth chapter deals with Findings, Analysis and Interpretation of data collected from various outlets. The fifth chapter deals with Conclusion of project & with Recommendations and Annexure having Questionnaire, and Bibliography etc.


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TABLE OF CONTENTSPage No. Chapter One Introduction Distribution Distribution Channel Discrepanciesin distribution channel Complicated success factors for distribution Distribution channel functions and flows Functions of a distribution channel Number of distribution channel levels Types of intermediaries Direct and indirect marketing indistribution Distribution intensity Distribution channel strategy Management ofchannel systems Distribution system of-ice cream companies Statement of the pro

blem Significance of the study Objectives of the research project Chapter Two Literature Review Literature review Theoretical framework Chapter Three Research Methods & Data Collection Techniques Research Methodology Chapter Four Data Analysis and Presentation Chapter Five Conclusions & Recommendations Conclusions Recommendations Annexure Questionnaire Bibliography and References 3 3 5 6 6 7 8 10 11 13 14 1518 21 21 21

24 35

40 43

75 76 78


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Chapter

1Introduction


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1. Introduction

1.1. DistributionThe Meaning of the Word "Distribution" having studied under the head of consumption the human wants that lead to economic activity, and the satisfactions that result from consumption; having studied in the second place the production of goods 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 their exchange among producers or between producers and consumers.

1.2. Distribution ChannelMany producers do not sell products or services directly to consumers and instead use marketing intermediaries to execute an assortment of necessary functions to get the product to the final user. These intermediaries, such as middlemen (wholesalers, retailers, agents, and brokers), distributors, or financial intermediaries, typically enter into longer-term commitments with the producer and make up what is known as the marketing channel, or the channel of distribution. Manufacturers use raw materials to produce finished products, which in turn may be sent 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 before they reach the retailer and, finally, the consumer. Each party in the distribution channel usually acquires legal possession of goods during their physicaltransfer, 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 thehands of the wholesaler or retailer that is, until the merchandise reaches the final user or consumer. Channels of distribution tend to be more direct that is,shorter and simpler in the less industrialized nations. There are notable exceptions, however. For instance, the Ghana Cocoa Marketing Board collects cacao beans in Ghana and licenses trading firms to process the commodity. Similar marketing processes are used in other West African nations. Because of the vast number of small-scale producers, these agents


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operate through middlemen who, in turn, enlist sub-buyers to find runners to transport the products from remote areas. Japans marketing organization was, until the late 20th century, characterized by long and complex channels of distributionand a variety of wholesalers. It was possible for a product to pass through a minimum of five separate wholesalers before it reached a retailer. Companies havea wide range of distribution channels available to them, and structuring the right 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 with its mail-order goods and as is the case with most industrial capital goods. Orthey may use one or more intermediaries to move their goods to the final user.The design and structure of consumer marketing channels and industrial marketingchannels can be quite similar or vary widely. The channel design is based on the level of service desired by the target consumer. There are five primary service components that facilitate the marketers understanding of what, where, why, when, and how target customers buy certain products. The service variables are quantity or lot size (the number of units a customer purchases on any given purchaseoccasion), waiting time (the amount of time customers are willing to wait for receipt 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 channel). It is essential for the designer of the marketing channel typically the manufacturer to recognize the level of each service point that the target customer desires. A single manufacturer may service several target customer groups through separate channels, and therefore each set of service outputs for these groups could vary. One group of target customers may want elevated levels of service(that is, fast delivery, high product availability, large product assortment, and installation). Their demand for such increased service translates into highercosts for the channel and higher prices for customers. However, the prosperity of discount and warehouse stores demonstrates that customers are willing to accept lower service outputs if this leads to lower prices.


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1.3. Discrepancies in Distribution ChannelDistribution channels should take care of the following

discrepancies.

Spatial Temporal Discrepancy Breaking bulk Assortment

SpatialThis 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 effectively.

Example: Companies produce products in one location even for global needs. MICOmakes fuel injection equipment, spark plugs etc in different plants but its dealer will sell the entire products.

Temporal DiscrepancyThe channel system helps in speeding up in meeting the requirement of the consumers. 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 BulkThe channel system reduces large quantities into consumer acceptable lot sizes.Production has to be in large quantities to benefit from economies of scale. Consumption is necessarily in small lot sizes.


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Example: India is ultimate example in breaking bulk you can buy one cigarette, one Annacian.

Need for AssortmentThe channel system helps aggregate a range of products for the benefit of the consumer that could be made by one company or several of them. For the same product, it could be a variety of brands and package sizes.

1.4. Complicated Success Factors for DistributionThe distribution strategy also needs the support and encouragement of top management to succeed. Some of the CSFs could be: Clear, transparent and unambiguous policy and procedure should require of serious commitment of the channel partners.

Fairness in dealings. Clearly defined customer service policy. High level of integrity. Equitable distribution at times of shortage. Timely compensation channelpartners.

1.5. Distribution Channel functions and flows

In order to deliver the optimal level of service outputs to their target consumers, manufacturers are willing to allocate some of their tasks, or marketing flows, to intermediaries. As any marketing channel moves goods from producers to consumers, the marketing intermediaries perform, or participate in, a number of marketing flows, or activities. The typical marketing flows, listed in the usual sequence in which they arise, are collection and distribution of marketing research information (information), development and dissemination of persuasive

communications (promotion), agreement on terms for transfer of ownership or possession (negotiation), intentions to buy (ordering), acquisition and allocation of


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funds (financing), assumption of risks (risk taking), storage and movement of product (physical possession), buyers paying sellers (payment), and transfer of ownership (title). Each of these flows must be performed by a marketing intermediary for any channel to deliver the goods to the final consumer. Thus, each producer must decide who will perform which of these functions in order to deliver theservice output levels that the target consumers desire. Producers delegate these 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 earn a superior return on their capital by investing profits back into their corebusiness rather than into the distribution of their products. Finally, intermediaries, or middlemen, offer superior efficiency in making goods and services widely available and accessible to final users. For instance, in overseas markets it may be difficult for an exporter to establish contact with end users, and various kinds of agents must therefore be employed. Because an intermediary typically focuses on only a small handful of specialized tasks within the marketing channel, each intermediary, through specialization, experience, or scale of operation, 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 production and consumption. Organizations that form any particular distribution channelperform many key functions: Information Gathering and distributing market research and

intelligence, important for marketing planning.

Promotion

Developing offers.

and

spreading

communications

about

Contact

Finding and communicating with prospective buyers.


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Matching

Adjusting the offer to fit a buyer

s needs, including grading, assembling and packaging.

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 iswho performs them and how many levels there need to be in the distribution channel in order to make it cost effective.

1.7. Numbers of Distribution Channel LevelsEach layer of marketing intermediaries that performs some work in bringing the product to its final buyer is a "channel level". The figure below shows some examples of channel levels for consumer marketing channels:


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In the figure above, Channel 1 is called a "direct-marketing" channel, since ithas no intermediary levels. In this case the manufacturer sells directly to customers. An example of a direct marketing channel would be a factory outlet storethat sells directly through her own retail stores, for example, Bata. This is the simplest and the shortest channel. It is fast and economical. Small producersand producers of perishable commodities also sell directly to the local consumers. Big firms adopt direct selling in order to cut distribution cost and because

they have sufficient facilities to sell directly to the consumers. The produceror the entrepreneur himself performs all the marketing activities. The remainingchannels are "indirect-marketing channels". Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. In this channel, the producer sells to big retailers like departmental stores and chain stores who in turnsell to customer. This channel is very popular in the distribution of consumer durables such as refrigerators, TV sets, washing machines, typewriters, etc. Thischannel of distribution is very popular these days because of emergence of departmental stores, super markets and other big retail stores. The retailers purchase in large quantities from the producer and perform certain marketing activities in order to sell the product to the ultimate consumers. The consumer electrical 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 suchas 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 wholesaler typically buys and stores large quantities of several producers goods andthen breaks into the bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. This arrangement tends to work best where the retail channel is fragmented - i.e. not dominated by a small number of large, powerful retailerswho have an incentive to cut out the wholesaler. A good example of this channelis most suitable for the products with widely scattered market. It is used in the distribution of consumer products like groceries, drugs, cosmetics, etc.


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1.8. Types of IntermediariesThere is a variety of intermediaries that may get involved before a product getsfrom the original producer to the final user. These are described briefly below: Retailers Retailers operate outlets that trade directly with household customers. 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-service). 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 role of the wholesaler is to sell onto retailers. Wholesalers usually specialize in particular products. Distributors and dealers Distributors or dealers have a similar role to wholesalers that of taking products from producers and selling them on. However, they often sell onto the end customer rather than a retailer. They also usually have a much narrower product range. Distributors and dealers areoften involved in providing after-sales service. Franchises Franchises are independent businesses that operate a branded product (usually a service) in exchange for a license fee and a share of sales.


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Agents Agents sell the products and services of producers in return for a commission (a percentage of the sales revenues).

1.9. Direct and Indirect Marketing in DistributionDirect MarketingA key decision a business has to make about distribution is whether to sell direct. This method of distribution is usually called direct marketing. Direct marketing

means selling products by dealing directly with consumers rather than through intermediaries. Traditional methods include mail order, direct-mail selling, coldcalling, telephone selling, and door-to-door calling. More recently telemarketing, direct radio selling, magazine and TV advertising, and on-line computer shopping have been developed. The main advantages of selling direct are that there is no need to share profit margins and the producer has complete control over thesales process. Products are not sold alongside those of competitors either. There may also be specific market factors that encourage direct selling: o There may be a need for an expert sales force, to demonstrate products, provide detailedpre-sale information and after-sales service. o Retailers, distributors, dealers and other intermediaries may be unwilling to sell the product. o Existing distribution channels may be owned by, or linked to, competing producers (making it

hard to obtain distribution by any other means than direct).


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However, there are significant costs associated with selling direct which may behigher than the costs associated with using an intermediary to generate the same level of sales. There are several potential advantages of using an intermediary: o More efficient distribution logistics. o Overall costs (even taking into account the intermediaries margin or commission) may be lower. o Consumers may expect 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 MarketingIt is the system the marketer reaches the intended final user with the help of others. These resellers generally take ownership of the product, though in some cases they may sell products on a consignment basis (i.e., only pay the supplyingcompany if the product is sold). Under this system intermediaries may be expected to assume many responsibilities to help sell the product.

Indirect methods include: o Single-Party Selling System Under this system the marketer engages another party who then sells and distributes directly to the final customer. This is most likely to occur when the product is sold through largestore-based retail chains or through online retailers, in which case it is often

referred to as a trade selling system.


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o Multiple-Party Selling System This indirect distribution system has the product passing through two or more distributors before reaching the final customer. The most likely scenario is when a wholesaler purchases from the manufacturer andsells the product to retailer. o Stream Line Distribution To improve the efficiency of process, business organization by simplifying or eliminating unnecessarysteps, 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 by using all available outlets. For many products, total sales are directly linked to the number of outlets used (e.g. cigarettes, beer). Intensive distributionis usually required where customers have a range of acceptable brands to chose from. In other words, if one brand is not available, a customer will simply choose another. o Selective distribution It involves a producer using a limited number of outlets in a geographical area to sell products. An advantage of this approach is that the producer can choose the most appropriate or best-performing outlets 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 preference for a particular brand or price and will search out the outlets that supply.


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o Exclusive distribution It is an extreme form of selective distribution in which only one wholesaler, retailer or distributor is used in a specific geographical area.

1.11. Distribution Channel StrategyFollowing are the factors that influence the choice of distribution channel by abusiness: 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, locally, via mail order or perhaps over the Internet? Another important factor isbuyer needs for product information, installation and servicing. Which channelsare best served to provide the customer with the information they need before buying? Does the product need specific technical assistance either to install or service a product? Intermediaries are often best placed to provide servicing rather than the original producer - for example in the case of motor cars. The willingness of channel intermediaries to market product is also a factor. Retailers in particular invest heavily in properties, shop fitting etc. They may decide notto support a particular product if it requires too much investment (e.g. training, display equipment, warehousing). Another important factor is intermediary cost. Intermediaries typically charge a "mark-up" or "commission" for participatin

g in the channel. This might be deemed unacceptably high for the ultimate producer business.


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o Producer factors A key question is whether the producer have the resources toperform the functions of the channel? For example a producer may not have the resources to recruit, train and equip a sales team. If so, the only option may beto use agents and/or other distributors. Producers may also feel that they do not possess the customer-based skills to distribute their products. Many channel intermediaries focus heavily on the customer interface as a way of creating competitive advantage and cementing the relationship with their supplying producers.

Another factor is the extent to which producers want to maintain control over how, to whom and at what price a product is sold. If a manufacturer sells via a retailer, they effective lose control over the final consumer price, since the retailer sets the price and any relevant discounts or promotional offers. Similarly, there is no guarantee for a producer that their product/(s) are actually beenstocked by the retailer. Direct distribution gives a producer much more controlover these issues. o Product factors Large complex products are often supplied direct to customers (e.g. complex medical equipment sold to hospitals). By contrast perishable products (such as frozen food, meat, bread) require relatively short distribution channels - ideally suited to using intermediaries such as retailers.

1.12. Management of Channel SystemsAlthough middlemen can offer greater distribution economy to producers, gainingcooperation from these middlemen can be problematic. Middlemen must continuouslybe motivated and stimulated to perform at the highest level. In order to gain such a high level of performance, manufacturers need some sort of leverage.


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Researchers have distinguished five bases of power: coercive (threats if the middlemen do not comply), reward (extra benefits for compliance), legitimate (powerby positionrank or contract), expert (special knowledge), and referent

(manufacturer is highly respected by the middlemen). As new institutions emergeor products enter different life-cycle phases, distribution channels change andevolve. With these types of changes, no matter how well the channel is designed

and managed, conflict is inevitable. Often this conflict develops because the interests of the independent businesses do not coincide. For example, franchisers,because they receive a percentage of sales, typically want their franchisees tomaximize sales, while the franchisees want to maximize their profits, not sales. The conflict that arises may be vertical, horizontal, or multichannel in nature. When General Motors Corporation comes into conflict with its dealers, this isa vertical channel conflict. Horizontal channel conflict arises when a franchisee in a neighboring town feels a fellow franchisee has infringed on its territory. Finally, multichannel conflict occurs when a manufacturer has established twoor 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 massmerchandisers, much to the dismay of its independent tire dealers. In the moder

n market, to manage the conflicts among intermediaries, marketers have developeda new type of distribution channel which is called the vertical marketing system. Vertical Marketing System It is structure in which intermediaries act as a unified system. One channel member will possess a huge power upon others. Therefore lead to an improvement in cooperation.

Types of Vertical Marketing SystemThere are three types of vertical marketing system. The most basic type is corporate VMS which combines successive stages of production and


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distribution under single ownership (Kotler.P, 2001). The next one is called contractual VMS which consists of independent businesses at different levels of production and distribution. They are tied together through contracts to obtain advantages and amelioration in sales. Conflicts are managed through contractual agreement among channel members. Finally, administer VMS coordinates successive stages of production and distribution through the size and power of one of the parties. Leadership is assumed by one or a few dominant channel members. Horizontal

Marketing Systems Apart from vertical marketing systems, another channel development is the horizontal marketing system. The system developed when two or more companies cooperate, or form a new company by combining assets, which will provide greater benefits than by acting alone. Usually a horizontal marketing system is established so that the individual members can combine resources to make the most out of the marketing situation. This system is also effective in global distribution channel.

Hybrid Marketing Systems A hybrid marketing channels is another name for multichannel distribution system in which one firm establishes two or more separate marketing channels to serve its customers. This system is greatly improving in recent years. Companies are creating new hybrid marketing systems that promise to be

come the dominant marketing design. These systems offer greater coverage and reduced costs, but they are also hard to manage. Companies will find many conveniences and advantages when facing large and complex markets. However, hybrid channel systems would generate conflict as more channels are competing for sales and profit.


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1.13. Distribution System of Ice-cream Companies

DistributionOne of the competitive advantages of the ice-cream companies is its availability, which is ensured by extensive distribution. The distribution of ice cream is different from other products. To keep it in a good form it must be chilled at appropriate 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. For this purpose the ice-cream companies gives a maximum margin of 18% to its retailers\distributors, which is distributed over entire channel. Pakistan is divided in three major sections. These are as follows: 1. North (Islamabad, Peshawarand Northern areas). 2. Central (Lahore and Central Punjab). 3. South (Sindh andBaluchistan).

Distribution ChannelDistribution channel consists of all the people and organizations, which are involved, in the physical distribution of goods. Selection of proper distribution channel is very important aspect because if the channel is managed efficiently, companies can save high costs and thus generate profits. The cooperation of chann

el members is also of vital importance. Distribution is making the product available but this availability should ensure that product must be:

At right place At right time In right condition If there is any deficiency in any of these basic elements of distribution, the future of product would be uncertain. Distribution is such an activity, which could decide the fate of the product.


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Mostly the ice-cream companies such as WALLS have a Hybrid Distribution System. It reaches different customers through different systems. WALLS is using two typesof distribution channels, both are indirect channels. HICO has no proper distribution system, they distribute directly from their factory. OMORE is a new brandin the market from last one year and they are developing their distribution system. Currently they have 2 cold stores, one is situated in Lahore and other is inIslamabad. 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 - ConsumerThis is commonly used, in which the ice-cream companies send the products to thelocal distributors who supply the products to the retailer in the required quantity. The retailer then sells it to the customer. The specialty and effectiveness of this system is excellent. The reason for such an excellent distribution system is the distribution policy. If a retailer wants to sell an ice cream, the investment 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 whichneeds to be discussed about the distribution is that during this distribution channel, the standard temperature of the cold chain is maintained.


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2. Producer - Stock Pointer - Dealer - Retailer - (Cycles) - Consumer

The second type of system was more a short term distribution system which has just for the introduction stage to actually made the product reach everywhere andthe system was more of creating awareness than actual retailing purpose. But thecycle distribution system yielded excellent results in terms of sales and creating 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 distribution channel of the ice-cream companies. One of the major reasons of earlysuccess and clean sweep given by WALLS is its availability, which is ensured through extensive distribution. There is not even a single city in the country where one cannot find a walls freezer or hear the sweet music of the trike (tricycles), which acts as a direct marketing for it. Thus, WALLS has always tried its best to ensure the availability of the product as close to the customers as possible and WALLS has been very successful in that.

Distribution StrategiesThere are two main distribution strategies, which ice-cream companies have veryeffectively used.

In first strategy include incentives like free deep freezers, discounts on bulkpurchases.

Advertising campaign that reminds and persuades customers to buy ice cream supports 2nd strategy, which is facilitated by price offs, which are frequently offered by the company.


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1.14. Statement of the problemThe problem which we will have to resolve in our research work is that, we haveto analyze effective distribution systems of different ice-cream companies. Theneeds and wants of the distribution channel members and the problems faced by them. How many retailers, wholesalers and distributors are currently providing ice-cream products to the customers. What so ever the requirement might be, so herewe are concerned to check out these problems or some other problems which will

be incurred during the research work.

1.15. Significance of the studyBy studying all these problems through different fact finding techniques and accomplishing the objectives of the research, we will reach to certain results which help us to make certain conclusions that whether the distribution system adopted by different ice-cream companies is effective or not and if any of the company has no effective distribution system then what criteria and ways they should adopt to have an effective distribution system in their company and how they canincrease their market share with the help of proper and effective distribution system.

1.16. Objectives of the Research ProjectTo understand the distribution system of different ice-cream companies. To findthe market share of each company. To determine the key areas of strength and weakness for each companys distribution system. To find the lacunas in the current distribution system. To compare the sales and distribution effectiveness of eachcompany. To find the comfort level of the dealers with the current distributionsystem. To identify the issues faced by the retailers, wholesalers and distributors. To get the feedback from retailers, wholesalers and distributor.


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To know whether wholesaler is able to satisfy the retailers needs in their specific area or not. To identify the area of service in which company needs to improve. To help the company in designing proper strategies for effective distribution system.


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Chapter

2Literature Review & Theoretical Framework


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2. Literature Review

We review the literature starting from the basic description about the distribution channels, and then zooming in to distribution channel conflict, discount structure dynamics for the distributors, distribution logistics and warehouse distribution, and finally the effectiveness of distribution channels that how distribution channels can work more effectively and efficiently in success of any organ

ization. 1. According to Bizzhelp24, (A UK business and finance resource providing Business Help, for individuals and Traders) wrote an article about Distribution Channels that is published in (2005). This article describes the term of

distribution and the importance of different distribution channels that how theycan be used efficiently and effectively in the businesses. According to this article distribution is all about getting the products / services to the right people at the right time with special consideration for profit and effectiveness. The successful marketing does not end when a business has developed a product / service and has found its appropriate target audience with a view to selling it at the right price. The main issue that needs to be faced is that how they are going 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 directly from the business, or it may have been through a number of intermediaries(wholesaler, retailer, etc): these are known as distribution channels. These distribution channels are influenced largely by the type and size of the business.The most important and vital part of administrating and selling the products isdeciding how they will be distributed; this affects the costs, price and profitof the products; as well as affecting how accessible they are for customers. Inthis article they have described three common methods of distribution which areas follows: Keeping stock in your premises or a warehouse, and distributing directly to customers.


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Distributing to a number of local warehouses, which then distribute to the customers. Distributing to regional warehouses, which distribute to local centers, and then deliver to customers. They said that if the customers are local, it wouldmake sense to distribute from a single place. The success of each system will depend on the amount of orders, as well as the locations of customers. If all thecustomers are local, it would make sense to distribute from a single place; where as if customers are scattered, a regional system may be more effective. 2. K.

Mackillop, (2009) in the article Defining the Distribution Channels for Businessdescribes that it is important to define the best distribution channels for theproduct, and for the customers. According to this article the distribution channel is the way the product gets to the customer. He argues that traditionally, businesses relied on a single distribution channel but now the most successful businesses are those who use multiple routes to reach a broader customer base. He also gave some examples of a single and a multiple distribution channels to reachto customers. According to him, for specialized, service-only ventures, the employees will personally deliver to the client, either on-site or at their place of business. Examples of these types of businesses are cleaning services, auto detailing, personal coaching, consulting, personal training, and training. Restaurants and other food service ventures also fall into this category. Selling retai

l products, on the other hand, allows multiple options for distribution online sales, brick-and-mortar storefront, direct sales through sales reps, festivals orshows, etc. The author also put emphasis on the distribution channels that areadopted by the competitors. He says that the organization should consider the distribution routes used by their closest competitors to analyze that whether theyare using the most effective channels or not. He further said that the target and potential customers of an organization also plays an important role in the distribution channels selected by the organization. If organizations are selling directly to the end user, they probably have more options than if they 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


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easier for the customers to buy from you rather than your competitors, they willcome. The organizations should consider all three factors product, customers, and organization itself before deciding the best routes for the business. If possible, consider developing multiple distribution channels because the more ways the product can get to the customers, the bigger is the potential market. 3. Richard Earls, (2009) in his article Understanding Distribution Channels describes distribution 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 thatis a distribution channel, as are the trade shows to sell the services; face toface meeting with a client is another distribution channel. Each distribution channel might employ a variety of tactics, specially crafted for that particularchannel. He says that it is important to recognize distribution channels and therole they play in generating business. The next step is to focus on the tacticsone use to drive business through each of these channels. Develop a set of finely honed tactics for each marketing collateral, promotions, allies and events. Calendar your efforts to keep them organized and sharp. Look at each distributionchannel you have and fine tune all of the tactics that surround them. The organization should focus on each as a separate opportunity. 4. Scott White, (2006) in his article All About Fulfillment Marketing Firms talked about the big shift fro

m traditional marketing systems to the increasing use of Internet marketing which makes business very difficult for small to mediumsized manufacturers who wantto cut costs and handle their own distribution and promotion. It

s understandable for large manufacturers that have opened their own stores along with major retailers favoring their own brands, are pushing small players aside. Major playershave the distribution systems and sales information systems to make their marketing campaigns work smoothly and effectively. That efficacy simply drowns out smaller players trying to get retailer

s attention. They know what

s working and what isn

t right away and can respond quickly. According to the author, marketingfulfillment is the process of delivering marketing materials through marketingdistribution channels, along with providing sales training, and communicating with channel members to ensure the complete marketing campaign is carried out on time. Without this integration of marketing


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and promotional materials, and the coordinated timing of their delivery to retail and wholesale locations, the retail advertising campaign won

t achieve the results desired. He further said marketing channels today are shorter than they used to be, but they

re more complex. Even with online and electronic payment systems, marketing materials have to be created and distributed through larger distances and overcome stronger distribution barriers. He says that effective marketers can shift resources at just the right time to make the promotions ineffective.

If the organization coming from a weak distribution position, competitors can easily take advantage of it. So the organization should have a strong distribution network in order to compete with the competitors more effectively. 5. John Henderson, (2007) in his article Discount Structure Dynamics talked about discount pricing structures for distributors. He says that distributors discount pricing structures is one of the most misunderstood and underutilized elements in distributor marketing programs. The direct affect on the company

s and their distributor

s profitability makes discount structures the most important element in the business relationships. According to him, the truth behind this fact is that most of the existing discount structures were not designed to support today

s marketing strategies and need to be re-evaluated. Many companies change the structure using a "team" approach, but few have an individual that owns the responsibility.

If companies 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 sales) or a "a price decrease" (which will reduce profitability). Theauthor further says that a well-designed distributor discount pricing structurehelps in achieving marketing objectives, which are as follows: Increase market share. Establish presence in a distribution channel. Emphasize particular productlines. Discipline and control your marketing expenditures. Reduce costs. Differentiate between distributors. Communicate values and strategies.


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Acknowledge and reward channel excellence. Acknowledge and reward loyalty. Well-structured discount programs are designed to compensate the distributor for performing marketing functions (and the costs associated with performing these functions) that the manufacturer would otherwise be responsible for: Carrying inventory 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 thebasis for their compensation change as manufacturers work to take costs out of their channel systems and improve customer service. Many firms are attracted to activity-based discounting because it is fair and generally supportive of their overall marketing strategies. In essence, an activity-based discount structure "pays" the channel for "what it does," or "you get what you pay for." 6. Phil Morettini, (2006) in his article Distribution Channel Conflict talked about the conflict between distribution channels and what strategies can be used to resolve thatconflict between the distribution channels. He also quoted an example of the conflict between two different distribution channels in his article. The author gave some recommendations to resolve the distribution channel conflict, he said sell through every channel that makes sense. There are many potential channels for

the products: direct, OEM, retailers, independent sales reps, strategic partnerreferrals, and more. In extreme cases, all of these potential channels may be appropriate ways to deliver the companys products to the market. If the organization is honest and fair with people, potential channel conflict shouldn

t unnecessarily stop an organization from maximizing revenue by using multiple methods ofdelivering the product to the market. There is a range of customer profiles in the market. Some want to buy everything through their trusted integrator, who helps give them a third party evaluation of the product

s virtues. Others want to deal directly only with the manufacturer or developer of


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the specific product they are purchasing. A third category of buyers likes to buy as much as possible through their favorite large manufacturer this is a greatreason 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, should and usually will get the deal. The last category of buyer, however, is different. This is the bargain basement buyer, the one who couldn

t care less who he buys 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 across many potential sources for the product, creating great price competition amongyour channel partners. This is where conflict is often born. 7. Gordon Petten,(2006) in his article Distribution Logistics and Warehouse Distribution said thatdistribution logistics plays a valuable and important role in any warehouse distribution system. As every warehouse is unique, and thus has its own unique distribution logistics. It can be something as simple as the number of floors or something as complex as the computer system used. But whatever causes them to be unique, distribution logistics must be taken into account when designing any service which utilizes warehouse distribution. According to the author, a retail business 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 managers make the mistake of creating a "one size fits all" approach to warehousedistribution. They believe that all warehouses should operate in essentially thesame manner, and the way to achieve this uniformity is through uniform distribution logistics. Distribution logistics in any warehouse distribution system should be viewed in much the same way individual workers are viewed. It is exactly the same way with the distribution logistics in any warehouse distribution system. What works in one warehouse, may not work in another. What optimizes the distribution systems in one warehouse may cause problems in another. However, this isnot an excuse to allow retrograde practices to continue. If a certain warehouseis truly underperforming, something needs to be done; and uniformity could be the answer. The author said that it is merely to say that distribution logisticsis not a "one size fits all" affair, and should not uniformly be treated as such

. Each warehouse should be studied, its practices examined,


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and then decisions can be made. Obviously, distribution logistics in a warehousedistribution system require some of the most care and attention of anything inthe distribution chain. So think twice before making any decision. 8. S.Shiny Niar, (2009) in her article Innovation in Logistics Industry describes the design ofa multi-tiered distribution network. She says that the key to a successful distribution strategy will be proximity. The tail that wags the distribution dog istransportation reliability. Transportation reliability or unreliability will pla

y a key role in determining the number of nodes required for distribution and the inventory to support it. Even firms with fast-moving goods will be required toset up decentralized, multi-tiered distribution networks that are: Rely more heavily on Inventory. Reside close to the Market. Use Technology to provide visibility and Collaboration. Select a Key Partner. 9. Stephen Kavita, (2009) in her article Effective Distribution Channels that affect Product Affordability says thatbusinesses operating in a product oriented market often vary in their distribution channels to suit their customers

needs. This is due to frequent changes inthe market trends and the economic implications. Stephen also put more emphasison different types of distribution channels that are more effective for the businesses. According to her, businesses will go for the least expensive distribution 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 direct selling and avoid middlemen because an organization can get immediate feedback from its customers and this will also ensure healthy customer relation. Shefurther talked about longer distribution channel that may be used for durable goods as they take a longer period before they expire. If the market for a productis unpredictable, the producer may opt to sell through middlemen who will sharethe risks involved as opposed to a producer shouldering all the risks. If a distribution channel has many middlemen, then the final price paid by the consumerfor the commodity will be high. The government should also put checks on the useof certain distribution channels, especially where middlemen seem to exploit consumers. As much as


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middlemen increase the price of a commodity, they do offer the advantage of storing and delivering goods to consumers thus freeing the distributor from some ofthe tasks. 10. Pedro Gondim, (2007) in his article Marketing in Counseling wrote about improving marketing through delivery. He describes the concept of service over delivery that provides a level of service beyond what youve promised your client in your marketing message. According to him, the intention of service overdelivery 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 clientcontracts, increased referral and stronger product endorsement. Generally, theperceived gain from over-delivering the service would be greater than the cost to provide the additional benefit to the client. He further said that every investment requires a systematic approach in order to be successful and over-delivering is not different. An organization will need to establish goals in order to measure the outcomes of their efforts, and also to avoid having financial problemsdue to an ill planned promotion. One can include the following points in theirover-delivery strategy: Establish primary objectives. Find a target market. Choose your gift. Create protocols. 11. Bob Segal, (2007) in his article How to Motivate Sales Channel Partners with a Formal Planning Process said that in an ideal world, the key distributors would develop annual business plans for their product

line and work closely with their distributor account managers to get the plansimplemented. In reality, many manufacturers skip this planning effort altogether. The success of many manufacturers hinges on the actions of tens or even hundreds of independent, mostly small, distributors. However, each distributor has different customer targets, different product mixes, and different sales and technical skills. Many lack strategic planning skills and marketing departments. A manufacturer can hope for the best or use distributor plans to gain greater controlover its


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distribution destiny. According to him, most manufacturers don

t have the capacity to handle hundreds of individual plans. Most of the manufacturers experiencethe 80:20 rules, where 80 percent of their revenue comes from 20 percent of their channel partners. At a minimum, suppliers should require plans from key partners. These plans should have highly customized content. However, the typical items a manufacturer should expect, or even require, in a distributor plan might include:

Business background. Product/services summary. Customer mix. Marketing plan. Training/personnel plan. Sales plan. Logistics plan. Financial plan.

The annual meeting should take place between the account manager and the owner or 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 hours. In preparation, the account manager should review, in detail, the distributor

s sales history, local market trends/conditions, the manufacturers

fulfillment of past commitments, new product plans, etc. 12. Thomas Cutler, (2006) in hisarticle The Role of CRM for Distributors talked about the impact of globalizationon distribution channels. He stated that globalization has made competition wit

hin manufacturing fierce in recent years. Not only is cost effective, timely production key to success, but streamlined procurement processes are also essential. Manufactured goods typically require collaboration with several partners, so only manufacturers that have highly efficient business processes will thrive andgrow. According to Larry Caret sky, (CEO of Commerce CRM for Manufacturing and Distribution), What is needed is an intelligent, integrated, customizable application to connect the business


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processes that increase visibility for effective decision making, and extend processes to customers and supply chain channel partners. According to Caret sky, Most software companies entered the CRM market with a handful of basic products. However, end-user companies found these products didnt always meet their unique needs, resulting in a low success rate, which discouraged company leaders. So, software vendors came out with variations of CRM software designed to meet a broaderrange of needs, with varying degrees of success. CRM software is only successfu

l when it helps a company manage relationships with its customers. 13. Gopinathan Thachappilly, (2009) in his article How Business Distribute Products to consumers says that selecting a distribution channel is a major business decision. He says that the distribution method an organization select can significantly impacton customer satisfaction, as well as marketing costs of the organization. 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.On the other hand, if prospective customers cannot find widely publicized product at a convenient outlet, organization stand to lose large volumes of sales. Distribution of the product is thus a strategic issue, as well as a practical oneintended to get the product to the final consumer. He further talked about the distribution logistics where physical goods have to be moved from a point of orig

in to points of consumption, issues of storage, handling and transportation comeinto the picture. This can prove a complex exercise where the variety and quantity involved are large. It will involve:

Moving the right assortment of merchandise in right quantities. Using the rightkinds of transport vehicles considering the nature of goods and speed of delivery. Routing and scheduling the movement to minimize overall transport costs. Ensuring that the merchandise is received at the destinations when needed. Computerbased logistics management solutions can be used to handle the complexities involved.


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14. Biggso, in his article The Network Marketing Strategy put emphasis on distribution through local distributors. According to him, network marketing aims at helping the manufacturers market their products to the end consumers via independent local distributors. By engaging local distributors to market the products of the company, the company is able to generate more income and save on distributionand advertising cost. As most companies would spend thousands of dollars to promote their products through TV commercials and advertising, billboards and other

forms of media. Promoting products and brands could cost the company a lot of money that a good portion of the cost that you pay for a certain product is actually added in to defray the advertising and promotion expenses. Since the networkmarketing strategy will do away the promotion and advertising cost by engaginglocal distributors to personally promote the products to the their friends, relatives and colleagues, the company will now be able to give the distributors bigcommissions. In most instances, the network marketing company will give the local distributors direct commissions of up to 30% of the sales generated by a localdistributor.

15. According to Wharton School of the University of Pennsylvania, who publishedan 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 meant a seismic shift in the relationships between consumers, retailers, distributors, manufacturers and service providers. It presents many companies with the option of reducing or eliminating the role of intermediaries and lets those providers transact directly with their customers. According to Eric K. Clemons, Whartonprofessor of operations and information management, says that direct distribution offers a company significant opportunities, but it also can present "numerousstrategic uncertainties. He suggests that before launching an e-commerce effortand bypassing its traditional distribution channels, a business should analyze which products are appropriate for electronic distribution, which consumer activities will be supported by which channel participants, and which segments or groups of consumers are likely to adopt electronic distribution.


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2.1 Theoretical Framework

A theoretical framework is conceptual model of how the theory makes sense of relationship among several factors that have been identified important for the problem. This conceptual framework helps to study various variables and relationships among them whether they are positive or negative. The variables which we are going to study in our research work are dependent, independent and moderating var

iables. Before going into the practical demonstration of variables through flowchart, first we have to list and define the purpose of the each variable that will be used in the research.

List of Factors Effective Distribution Distribution Channels (Wholesalers, Retailers) Availability and Accessibility Price Time Competitors Customers of the organization Distribution Logistics Training, Communication & Discount Pricing Structure

List of Variables Dependent Variable Independent Variable Independent Variable Independent Variable Independent Variable Independent Variable Independent Variable Independent Variable Moderating Variables

The dependent variable Effective Distribution is the variable of primary interestand to which the independent variables and moderating variables may cause to influence. The basic purpose because of which the above variables are taken is to analyze their influence either positive or negative, on the dependent variable.

If we talk about the distribution channels, it can have a both positive and negative impact on the effective distribution of the products because distribution channels are influenced largely by the type and size of the business. If the distribution channels are according to the nature of the product and needs of the customers than it has a


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positive relationship with the dependent variable and if it the distribution network is not according to the nature of the product than distribution effectiveness decreases and it has a negative relationship with the dependent variable.

Talking about availability and accessibility of the products, if products are physically not available or cannot easily accessible then how they are going to bepurchased. The most important and vital part of administrating and selling the

products is deciding how they will be distributed; this affects the costs, priceand profit of the products; as well as affecting how accessible they are for customers.

The price is also an important factor that has an impact on the effective distribution because if the prices of the products are high, there is no demand in themarket for the particular product so it has a negative relationship with the dependent variable so the prices of the products should be affordable for customers so that it will create a positive relationship with the effective distributionand it is only possible when there is a demand in the market and prices are affordable for the customers.

If we talk about time, it is also a very important independent variable that hasa major impact on the effective distribution because distribution is all aboutgetting the products / services to the right people at the right time with special consideration for profit and effectiveness. If products are available in theright assortment and quantities at the right place and time to the customer, theorganization gains a distinct competitive advantage.

Competitors have a great influence on the effective distribution system of the organization and the organization should consider the distribution routes used bytheir closest competitors to analyze that whether they are using the most effective channels or not. If an organization will keep her eye on the competitors then they can have more effective distribution system otherwise both the variableshave a negative relationship with each other.

The target and potential customers of an organization also plays an important role in the distribution channels selected by the organization. If organizations are selling directly to the end user, they probably have more options than if they are targeting


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distributors to market their product. If product is new to the market, considerwhere 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. Distribution logistics plays an important role in effective distribution because distribution logistics are the current that makes that channel flow and distribution logistics in any warehouse distribution system should be viewed in much thesame 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 relationship with the effective distribution.

Now at the end we talk about the moderating variables that have a strong contingent effect on the moderating independent variable-dependent variable relationship. These are Training, Communication and Discount Pricing variables

Structures. The presence of the third variable (Moderating Variable) modifies theoriginal relationship between the independent and dependent variables. Sales training and communicating with channel members ensures that the complete marketing campaign is carried out on time. Without this integration of marketing and promotional materials, and the coordinated timing of their delivery to retail and w

holesale locations, the retail advertising campaign won't achieve the results desired. This training also helps the key distributors in developing annual business plans for their product line and work closely with their distributor accountmanagers to get the plans implemented. As each distributor have different customer targets, different product mixes, and different sales and technical skills, so they have to do their best to gain greater control over its distribution destiny. So the training and communication with the channel partners can also enhancethe relationship between independent and dependent variables. Discount PricingStructure is an also an important moderating variable that can entirely change the relationships between dependent and independent variables because if companies are avoiding making changes to their discount structures, fearing that the endresult will be perceived as either "a price increase" (which will reduce unit sales) 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 variables there should be a well-designed distributor discount pricing structure which helps in achieving marketing objectives set by the organizations and that also compensates the distributor for performing marketing functions (and the costs associated with performing these functions).


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The research framework of an effective distribution is therefore depicted as follows:

Research Framework

Distribution Channels(Retailers and Distributors)

Availability and Accessibility

Price

Time Effective Distribution CompetitorsDependent Variable

Customers of the Organization

Training, Communication and Discount Pricing Structure

Distribution LogisticsIndependent Variables Moderating Variables


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Chapter

3Research Methodology


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3. Research Methodology

Research DesignIn our research project we will use various tools of exploratory research. Thisresearch will be done to gain background information of the problem. An initialresearch will be conducted to clarify and define the nature of the problem. Descriptive 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 cream 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 toconduct the research. Walls. Hico. Omore. Yummy. Gourmet.

o Specify measurement and scaling procedures Graphs, tables, diagrams and otherdata presentation techniques to be used to measure the results to conclude.


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o Construct and pretest questionnaire The questionnaire should be prepared whilereviewing the objectives to be achieved, discussions with the instructors, making of the questionnaire according to the research problems and finally approvedby the instructor.

SampleThe sample size on which we will conducted our research is approximately consist

s of 70 respondents which includes retailers and distributors of the above mentioned ice cream companies. The sample includes managers, workers and other employees of those distribution channels.

o Sampling Technique We will use the technique of random sampling in our research. o Sampling procedure Sample size should be categorized and represents the whole population.

Data collectionData will be collected through primary and secondary resources. The source for primary data will be distributors and retailers. The source for secondary data will be the articles published by different magazines, journals newspapers, text b

ooks etc. Direct personal structured and unstructured interviews with samples respondents will be conducted so the data collected will be first hand and original in character. o Tool/instrument of data collection Comprehensive questionnaires will be used to collect the desired information. We will design different questionnaires for retailers and


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distributors so that we can get first handed and accurate information from themabout the effective distribution system of the company. Pretesting of questionnaire will be carried out to determine how it will serve the purpose of obtainingneeded data.

Questionnaire Design The questionnaire consists of predominantly closed ended and option based question in order to provide some ease to the respondents. In order to make the questionnaire more effective following points are covered:

Uniformity in questions. Reduce subjectivity. Easier to receive response. Less time consuming. The questions tried to cover all aspects required to analyze theeffective distribution system of each company.

Data Analysis ProcedureData collected through the questionnaires will be analyzed and interpreted. Thestatistics analysis will be carried out with the help of computer software Microsoft 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.


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Chapter

4Data Analysis & Presentation


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Data Analysis of Retailers


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

Question 160% 50% 40% 30% 20% 10% 0% Series 1 Wall

s 55% Yummy 13% Hico 3% Omore

22% Gourmet 5% Others 2%

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 Gourmet and others include only 2%.


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Q 2):- From how long you are associated with the company?

Question 2120% 100% 80% 60% 40% 20% 0% 0-5 years 5-10 years 10-15 years Above 15 years Wall

s 61% 39% 0% 0% Yummy 12% 25% 63% 0% Hico 50% 50% 0% 0% Omore

100% 0% 0% 0% Gourmet 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 retailers of Walls are associated with the company from last 0-5 years and 39% retailers are associated from last 5-10 years. Similarly, the maximum retailers of the Yummy i.e. 63% are associated from last 10-15 years which shows the company has agood relation with its intermediaries.12% are associated from last 0-5 years and 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 5-10 years. In Omore, all the retailers are associated from last 1 year because this company is new in the market. 33% of the Gourmet retailers are associated fromlast 5 years and 67% are from last 10 years with the company. Others include the company who manufacture ice-cream locally so thats why they are associated from

last 5 years.


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Q 3):- Are you satisfied with quality of the products offered by the company?

Question 3120% 100% 80% 60% 40% 20% 0% Yes No Wall

s 100% 0% Yummy 87% 13% Hico 50% 50% Omore

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 the results we concluded that all the retailers of Walls are satisfied with the quality of the products. 87% of the retailers of Yummy are satisfied while 13% arenot. 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, Gourmet and others are 100% satisfied with the quality of the products.


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Q 4):- Are you satisfied with the delivery / distribution services provided by the

company?

Question 4120% 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 delivery and distribution system of the companies they are associated with. The above 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 distribution system. Similarly Hico, Gourmet and others are also highly satisfiedwith the current delivery system. 75% retailers of Yummy and 92% retailers of Omore are satisfied with current delivery system of the companies.


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Q 5):- Are you satisfied with the performance of the sales person of the company?

Question 5120% 100% 80% 60% 40% 20% 0% Highly Sarisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Wall


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 about the performance of the sales persons of the company whether the sales persons perform their duties honestly or not and whether they are cooperative with theretailers or not. So in the results the retailers who are associated with different companies shows their satisfaction level for the sales persons of their respective companies.


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Q 6):- What is your opinion regarding the sales persons frequency of visits in a

month?

Question 6120% 100% 80% 60% 40% 20% 0% Regular Adequate Inadequate Wall

s 94% 3% 3% Yummy88% 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 with different companies about sales persons frequency of visits in a month to the retailer. From the results we concluded that the sales persons of every company visit the retailer regularly. We also found that the 13% retailers of Yummy respond that the visits of the sales persons from Yummy are inadequate.


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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 time or every time they have to face some problems regarding the delivery of the products. From the results we have concluded that almost all the companies deliver the products in time to the retailers end. But we have also seen that sometimesthere is a delay from the companies in delivering the products in time but thisthing happens very rarely.


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Question 7 "Completeness of Order"120% 100% 80% 60% 40% 20% 0% Fully Completed Partially Completed Not Completed Wall

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 completely 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 theproducts completely to the retailers. But we have also seen that sometimes theorder is partially completed due some unexpected reasons but it happens rarely.


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Q 8):- Are you satisfied with the current commission system given by the company?

Question 8120% 100% 80% 60% 40% 20% 0% Highly Sarisfied Satisfied Neutral Dissatisfied Highly Dissatisfied Wall


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 about the commission system given by the company. From our results we concluded that the retailers have mix opinions about the commissions given by the company. Some retailers are highly satisfied while we have also found some highly dissatisfied retailers who are not happy with the current commission system.


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Q 9):- How often do you find that expired products are supplied to you?

Question 9120% 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 receive expired or defective products from their respective companies. From the results we observed that mostly the companies deliver new stock to the retailersbut sometimes the retailers also receive some defective and expired products from those companies.


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Q 10):- What is the proportion of defective / expired products in total quantitysupplied

to you?

Question 10120% 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% Others 100% 0% 0% 0%

Interpretation: This graph shows if the retailers receive expired, out-dated anddefective products then in what quantity they receive such products. We found that the percentage of such type of products is not more than 2-4 % of the totalproducts delivered to the retailers.


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Q 11):- Which are the trade promotion schemes that you like the most?

Question 1180% 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 thatwhat kind of trade promotional schemes they like the most. From the results we concluded 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.


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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 Very Poor 25% 50% 25% 0% 0%

Billing/ Documenta tion 63% 25% 12% 0% 0%

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