marico indiustries ltd

EXECUTIVE SUMMARYSYNOPSIS

India’s consumer market is riding the crest of the country’s economic boom. India’s

fast moving consumer goods (FMCG) sector is the fourth largest sector in the

economy of India with a total market size in excess of US$ 13.1 billion. If we go by

statistics, roughly around 73% of the Indian population lives in the rural areas- that’s a

very large market. Many giant players, both foreign as well as domestic, are

competing in the market with a view to capture it. The growing consumerism in India

shows the rapid increase in Indian consumer purchasing power, it shows strengths and

opportunity that lies in rural Indian markets especially for FMCG products. As a

result of it I have opted to undergo the training in Marico Company a leading Indian

FMCG Company having excellent distribution channel and deep rural reach in India.

As the major part of the market is yet to be taped one need to evolve a set of strategies

and there by plans to tape the potential Indian consumer market. To capture such a

great opportunity, only good product and brand awareness will not be sufficient but

proper distribution channel must be there

With the world moving toward's globalization and the phenomena of LPG is touching

each and every country and industry its effects are also there on Indian FMCG sector.

Thus Companies need to constantly revive their 4P's strategy to be successful in the

growing competitive Market's. Considering purely the fundamentals laid down by

Philip Kotler is suggest that you need to have Right Product Mix (Product),Proper

Pricing Strategies(Pricing),Right Promotion Offers(Promotion) and Efficient

Distribution Channel (Place) to be a Successful Company.

So in order to have a clear picture of all 4P's of Marico and especially for having

efficient distribution channel, Satisfaction Level of Retailers on Various Products as

well as other micro Parameter's plays a vital role in identifying the flaws and merits of

Marico. As a result I have conducted the Market Research of 150 retailer's associated

with marico who are giving annually business of more than Rs60,000 to the company

and are having more than 3 products of the company. Along with retailer's I also meet

30 wholesellers to assess their satisfaction level which will definitely help Marico Ltd

to improve its efficiency and thrive upon its strong Points.

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The project was conducted with the help of Marico Ltd. Presently company has two

dif distribution channel, one for urban areas and another for rural areas.

My primary objective for this project is to “Identify the satisfaction level of retailer's& Wholeseller's in Rural Area”

I have also identified the satisfactions level of retailers for different Brand/Products as

well as also studied the Parameters for each brand, 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.

Approaching different intermediaries, I have collected important data using pre-

designed questionnaire. By applying different statistical tools I have found some

useful information, which will definitely help the company to improve the

effectiveness of the distribution channel. Tools used are Weighted Average, Chi

Square and ANOVA Analysis

While doing the project, I have to also work as sales management trainee, which

gave me a great real time experience of marketing and selling in the rural market. The

meeting with retailers showed me the complexities of Rural FMCG market and I learn

a lot of skills from ground level sales people and also working with ASM of the

Company. The Real time Experience that I got will definitely will help me immensely

in future in the field of marketing...

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1.1 SECTOR IDENTIFICATION

If we go by statistics, roughly around 73% of the Indian population lives in the

rural areas. That’s almost 12% of the world population.

There are 600,000 villages in India. 23% of all villages account for 63% of the

total rural population. So you can contact 63% of 680 million or 700 million

population by simply contacting 130000 villages - that’s a very large market

Since this theoretically constitutes a huge market potential, marketers will tend

to throw in their hooks to catch the fish. Now with the urban demand hitting

the plateau, rural markets are gaining more importance and we cannot ignore

it.

Hindustan Lever’s sales turnover in rural market alone is over five thousand

Crores - that’s a whopping fifty percent of the total sales turnover. So we can

imagine how much potential the rural market has?

To get the maximum out of this opportunity, all organization needs to plan

strategically.

What has happened from 1990 onwards is that advertisers spent a lot of on and

by default they covered some rural markets as well. As a bonus, these

advertisers started getting certain returns from the rural market - bonus of

investment, which they had actually made for the urban market

What marketers and advertisers are today worried about is how to develop a

scalable model of influencing the rural consumers’ mind over a large period of

time and keep it going, given limited or reasonable budgets to make this

happen.

Many companies are entering to the rural market and the potential of the

market encourage me to do project work in the rural market.

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ABOUT FMCG SECTOR INDIA

Markets all over the world have been on a roll in 2003 and the Indian bourses are no

exception having gained almost 60% in 2003. During this period, while there are

sectors that have outperformed this benchmark index, there are also sectors that have

under performed. FMCG registered gains of just 33% on the BSE FMCG Index last

year. At the macro level, Indian economy is poised to remained buoyant and grow at

more than 10%. The economic growth would impact large proportions of the

population thus leading to more money in the hands of the consumer. Changes in

demographic composition of the population and thus the market would also continue

to impact the FMCG industry. According to a survey by 2013, Indians under 20 are

estimated to make up 33% of the population - and wield proportionately higher

spending power. Means, companies that are able to influence and excite such

consumers would be those that win in the market place The Indian FMCG market has

been divided for a long time between the organized sector and the unorganized sector.

While the latter has been crowded by a large number of local players, competing on

margins, the former has varied between a two-player-scenario to a multi-player one.

Unlike the U.S. market for fast moving consumer goods (FMCG), which is dominated

by a handful of global players, India's Rs.460 billion FMCG market remains highly

fragmented with roughly half the market going to unbranded, unpackaged home made

products. This presents a tremendous opportunity for makers of branded products who

can convert consumers to branded products. However, successfully launching and

growing market share around a branded product in India presents tremendous

challenges. Take distribution as an example. India is home to six million retail outlets

and super markets virtually do not exist. This makes logistics particularly for new

players extremely difficult. Other challenges of similar magnitude exist across the

FMCG supply chain. The fact is that FMCG is a structurally unattractive industry in

which to participate. Even so, the opportunity keeps FMCG makers trying.

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1 STRUCTURAL ANALYSIS OF FMCG INDUSTRY

1. The products often cater to 3 very distinct but usually wanted for aspects -

necessity, comfort, luxury. They meet the demands of the entire cross section

of population. Price and income elasticity of demand varies across products

and consumers.

2. Individual items are of small value (small SKU's) although all FMCG products

put together account for a significant part of the consumer's budget.

3. The consumer spends little time on the purchase decision. He seldom ever

looks at the technical specifications. Brand loyalties or recommendations of

reliable retailer/ dealer drive purchase decisions.

4. Limited inventory of these products (many of which are perishable) are kept

by consumer and prefers to purchase them frequently, as and when required.

5. Brand switching is often induced by heavy advertisement, recommendation of the retailer or word of mouth.

2. Marketing and Distribution

1. High Initial Launch Cost - New products require a large front-ended

investment in product development, market research, test marketing and

launch. Creating awareness and develop franchise for a new brand requires

enormous initial expenditure on launch advertisements, free samples and

product promotions. Launch costs are as high as 30-100% of revenue in the

first year. For established brands, advertisement expenditure varies from 3 -

12% depending on the categories.

2. Limited Mass Media Options - The challenge associated with the launch

and/or brand-building initiatives is that few no mass media options. TV

reaches 67% of urban consumers and 33% of rural consumers. Alternatives

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like wall paintings, theatres, video vehicles, special packaging and consumer

promotions become an expensive but required activity associated with a

successful FMCG.

3. Huge Distribution Network - India is home to six million retail outlets, including 2 million in 3,160 towns and four million in 627,000 villages. Super markets virtually do not exist in India. This makes logistics particularly for new players extremely difficult. It also makes new product launches difficult since retailers are reluctant to allocate resources and time to slow moving products. Critical factors for success are the ability to build, develop, and maintain a robust distribution network.

3 Competitions

1. Significant Presence of Unorganized Sector - Factors that enable small,

unorganized players with local presence to flourish include the following:

2. Basic technology for most products is fairly simple and easily available.

3. The small-scale sector in India enjoys exemption/ lower rates of excise duty,

sales tax etc. This makes them more price competitive vis-à-vis the organized

sector.

4. A highly scattered market and poor transport infrastructure limits the ability of

MNCs and national players to reach out to remote rural areas and small towns.

5. Low brand awareness enables local players to market their spurious look-alike

brands.

6. Lower overheads due to limited geography, family management, focused

product lines and minimal expenditure on marketing.

4 Problem present in Sector

PROBLEMS PREVAILING IN THE PARICULAR SECTOR

Low education level.

Less developed infrastructure.

In rural markets, brands are non-existent.

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They identify FMCG by three things -primarily by color, visuals of

animals and birds and by numbers. So a 333, 777, pila hathi, lal saboon -

these are the kind of terms with which they identify brands. They buy those

three things: colors, numbers and visuals.

There are number of cases which suggest that to sell brands in the rural

market, it is necessary to simultaneously educate the consumers. For example,

villagers were found using shampoo for brushing teeth, toothpaste for washing

hair, and these are real life examples, not stories being created. They don’t

know what these shampoo sachets stand for. So if you have to create brand

communication, marketing efforts must be supported by education.

Longer credit period requirement.

We need a set of people who understand the ethos of the rural market - people

who understand the social fabric, who understand how the rural consumer

interacts with the various categories because we believe that we do need a

different level of understanding for tackling this market.

Rural retailers are far less specialized than their urban counterparts and carry a

wider range of products. Since frequent delivery is not possible in their part of

the world, they tend to carry only a single brand in each product category.

And, usually, the brands that are first on the rural shelves become synonymous

with product category and are difficult to dislodge.

ABOUT INDIAN HAIR OIL & HAIR CARE MARKET SIZE IN RUPEES

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ABOUT MARICO MARKET SHARE

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INTRODUCTION OF COMPANY

Marico is a leading Indian Group in Consumer Products and Services in the

Global Beauty and Wellness space. Marico’s Products and Services in Hair care,

Skin Care and Healthy Foods generated a Turnover of about Rs.13.6 billion (about

USD 380 Million) during 2006-07. Marico markets well-known brands such as

Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive,

Manjal, Kaya, Sundari, Aromatic, Camelia, Fiancee and HairCode. Marico’s

brands and their extensions occupy leadership positions with significant market

shares in most categories- Coconut Oil, Hair Oils, Post Wash Hair Care, Anti-lice

Treatment, Premium Refined Edible Oils, niche Fabric Care etc. Marico is present

in the Skin Care Solutions segment through Kaya Skin Clinics (31 in India and the

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Middle East), the Sundari range of Spa skin care products (in the USA & other

countries) and its soap franchise (in India and Bangladesh).

Marico's branded products are also present in Bangladesh, other SAARC

countries, the Middle East and Egypt. The Overseas Sales franchise of Marico’s

Consumer Products (whether as exports from India or as local operations in a

foreign country) is one of the largest amongst Indian Companies and is entirely in

branded products and services. Marico was selected as one of the eight Indian

companies in S & P's list of Challenger Companies from various nations,

compiled globally by Standard & Poor's in June 2007.

Marico has also won various other Awards such as the following:

3 top Awards instituted by CNBC-TV18, U21 Global and Watson Wyatt

Worldwide, in following categories: India’s Employer of Choice for 2007 ,

Award for HR Excellence & Award for Best Employer in the Consumer

Products and Healthcare Sector.

Gold Effie (2007) for its Corporate campaign and a Bronze Effie (2007) for

Saffola.

Kaya - Best Retailer in the Beauty and Fitness category, India retail Forum

(September 2007)

NDTV Profit - Business Leadership Award, FMCG Personal Hygiene

Category (July 2007).

One of India's 10 best marketers (Business Today September 2006).

Brand Leadership Award at the India Brand Summit 2006 (September 2006).

Kaya - Retailer of The Year Award (for the 2nd consecutive Year) at India

Retail Summit 2006.

The Gulf Marketing Review Award in the Middle East 2006.

Every month, over 70 Million consumer packs from Marico reach

approximately 130 Million consumers in about 23 Million households,

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through a widespread distribution network of more than 2.3 Million outlets in

India and overseas.

Marico’s focus on sustainable profitable growth is manifest through its

consistent financial performance – a CAGR of 19% in Turnover and 19% in

Profits over the past 3 years- while setting a record of several consecutive

quarters of year on year growth- 32 for Profits and 28 for Sales.

VALUES OF MARICO INDUSTRY

Opportunity seeking

Bias for Action

Consumer Centric

Excellence

Innovation

openness & transparency

Global outlook

Boundary lessness

Marico has a set of articulated values that were created at the inception of the

organization, revisited and modified once in the year 1997 and lately in 2003, through

the collective wisdom of Mariconians. The values since then have been an integral

part of the workingofallMariconians.

Our values are preferred practices that are employed in pursuit of our Business

Direction. They sum up the philosophy that will build the culture to drive business

growth.

How Marico structured

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A Flat Structure:

At Marico, we are an organisation, which is flat with only five levels of reporting

between the Managing Director and an operator on the shop floor.

We believe that a flat structure helps us in being more responsive to the environment

while providing enriched roles for our members. Our structure defines clear roles and

supporting relationships but is by no means rigid. Keeping in mind the fast and ever

changing business environs, Marico's structure is dynamic and constantly evolving.

Profit Centers:

In order to provide focus to its business operations, Marico has organised its

businesses into the following business segments or profit centers:

Consumer Products, comprising the operations of Marico Limited and Marico

Bangladesh Limited. This division manufactures & markets Marico's 10 leading

consumer product brands like Parachute, Saffola, etc.Aesthetics Services, comprising

operations of Kaya Skin Clinics under the banner of Kaya Skin Care Ltd. Kaya Skin

Clinics offer US FDA approved scientific dermatological procedures that are

customized to suit the Indian skin. Global Ayurvedics, comprising the operation of

Sundari LLC in the US. Sundari markets the Sundari range of Ayurvedic skin care

products in the US & other parts of the world. All the above profit centers have their

dedicated marketing teams, distribution channels, sales force and backroom facilities.

Finance:The company is strongly supported by the Finance Division, which handles the legal,

treasury, tax, control systems and management information support. Additionally,

every profit center has its own dedicated finance cell.

HR:Equal support comes from our HRD team, which expends its energies, formulating

and building strategies to build a stable and high - talent organisation.The innovations

and the quest for excellence at Marico continue unabated. Even as the success stories

continue, the focus from the consumer never shifts.

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MARICO'S BUSINESS DIRECTION –

2010

We commit ourselves to improving the quality of people's lives in several parts of the

world, through branded fast moving consumer products and services in Personal and

Health Care sectors.

We shall offer brands that enhance the appeal and nourishment of hair and skin

through distinctive products and services based on the goodness of coconut, other

natural substances and the underlying science of hair care and skin care.

We shall make available brands that contribute to healthy living, through, both

products drawn from agriculture offered in natural or processed forms, and services.

We shall develop, in parts of the world beyond the Indian Subcontinent, a franchise

for our branded products and services.

We shall aim to be a leader in each of our businesses through heightened sensitivity to

consumer needs, setting up of new standards in the delivery and quality of products

and services and processes of continuous learning and improvement.

We shall share our prosperity amongst members, shareholders and associates, who

contribute in improving our equity and market value. We shall acquire the stature of a

friendly corporate citizen, contributing to the betterment of neighborhood

communities, where we are significantly present.

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MARICO BRAND'S PROFILE

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MARICO BRAND PORTFOLIO

Hair CareCategory

Hair Oil Category

Edible Oil Category

Other Products

Parachute Hair & Care

Shanti Amla

After Shower

Silk & Shine

Mediker

Saffola Oil

SweekarOil

Revive Instant Starch

Sil Jam

Therapies

About marico brand

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MARICO PRODUCT PORTFOLIO

Parachute Hair & Care

Silk & Shine

Saffola Sweekar Mediker

Nihar

Revive

Parachute Regular/Standard

Parachute Advanced

Parachute Jasmine

Parachute after Shower

Parachute Therapie

Saffola Gold

Saffola Tasty Blend

Saffola Kardi

Saffola Salt

Shanti Amla Hair Oil

Product PROFILE

(1) PARACHUTE

Parachute is premium edible grade oil, a market leader in its category. Synonymous

with pure coconut oil in the market, arachute is positioned on the platform of purity.

In fact over time it has become the gold standard for purity. From a loosely available

commodity to a path-breaking brand, Parachute pioneered the switch from coconut oil

sold in tins to plastic.

Flip Top Cap for Parachute bottles to enhance

the safety and protect the purity of Parachute

Easy Jar of Parachute to facilitate usage

especially during winters

Parachute Mini - a bottle shaped small pack

being sold at an MRP of Re. 1

20 ml Parachute - a Rs 3 SKU that enables

loose oil users to upgrade to Parachute.

1.2 PARACHUTE ADVANCED

Parachute Advansed refined hair oil (with fruity perfume) is the latest introduction

from Marico. Parachute has always strived to remain relevant to every new

generation. It is a brand that is backed by years of trust and heritage and it aims at

using the same equity to appeal to the young Indian consumer. Launched in 2004, the

Parachute Advansed refined hair oil comes packed in a sleek looking, light blue

translucent bottle

1.3 PARACHUTE JASMINEParachute Jasmine is a light, fragrant oil that can be used everyday to nourish and

sytle your hair. It has the goodness of pure coconut oil and the essence of fragrant

jasmine to give you healthy, non-sticky, free flowing and fragrant hair. Parachute

Jasmine is the most successful new brand launch from Marico's stable in the recent

past. The strong product proposition backed by insightful communication, strong

distribution and activation support has seen dynamic growth with 63% CAGR in the

past 4 years. It is now a strong No. 2 player in the growing VACNO (Value Added

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Coconut Oil) Sensorial sub-category with a 30%* market share. (*A.C Nielsen Nov

03).

1.4 Parachute After shower Hair CreamParachute After shower Hair Cream for men, is a hair styling cream that can be used

daily to style your hair. It has Aqua Moisturizers & since it is made in an oil-in-water

emulsion, it is completely non-sticky. Parachute After shower Hair Cream contains

coconut milk proteins, which keeps hair nourished. The need for males to look good

has never been more important. More and more males in India are realizing the

importance of “great looking hair” & want a product that can be used to “style hair

daily.” Parachute Aftershower Hair Cream was launched in Mumbai in March 2003,

as a prototype (test-market). Within 2 months of its launch in Mumbai, it grabbed an

impressive 28% market share, which it has increased (October'03 %MS is 36%). It

was launched pan India in August 2003. Within 3 months of its launch (October

2003), it has touched a 23% market share of the All India hair cream market

1.3PARACHUTE THERAPIEParachute Therapie Hair Fall Solution is a unique scientific formulation from Marico,

developed after 6 years of intensive research, product development and consumer

trial. It is completely safe to use and helps control hair fall naturally. All that is to be

done is to apply it thrice a week, and leave it on overnight. 77% of users have reported

reduction in hairfall in 43# days with the use of 1 bottle. 27% users also reported

softer hair.

(2) HAIR & CARE

Marico’s Hair & Care, a pleasantly perfumed non-sticky hair oil is a strong brand in

its category. It is positioned on the platform of being the lightest perfumed hair oil

offering both “Style & Nourishment”. Hair & Care is upto 30% non sticky than any

other hair oil & is enriched with “Herbal Proteins”, which nourishes hair with their

natural goodness. Herbal Proteins are extracted from Neem & Tulsi, a process

patented by Marico

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(3) SHANTI BADAM AMLA

Launched in April 2003, Shanti Amla marks Marico's successful entry in the Amla+

Hair Oil market. It is launched on the platform of "Goodness of Badam with Amla".

(4) Oil of Malabar

Oil of Malabar is premium quality edible grade coconut oil. This brand is one of

Marico's recent acquisitions, having been bought in November 1999. Oil of Malabar,

as the name suggests, is positioned on purity - as the oil from the land of coconuts.

(3) Mediker

Mediker, a three-decade-old brand was acquired by Marico from Procter & Gamble,

in July 1999, in the shampoo format. Mediker is a brand for treating lice and a market

leader in its category. Mediker today has three products in its portfolio: Mediker Anti

Lice treatment, Mediker Anti Lice Oil and Mediker Plus Anti Lice Oil

(6) REVIVE INSTANT STARCH

Revive is an Instant Cold Water Starch, the ONLY product of its kind. Formulated

with the latest International technology to give clothes uniform, strong starching, it is

uniquely positioned on the platform of making your 'Clothes Look Like New".

(7) Sweekar (Refined Sunflower Oil)

Sweekar is a national brand comprising of Refined Sunflower Oil. Sweekar has

become synonymous with good quality light edible oil. It is positioned as a light and

healthy cooking medium.

(8) SAFFOLA

Saffola Kardi

Saffola is made from the finest quality natural kardi seeds. Kardi oil has the highest

amount of Polyunsaturated Fatty Acid amongst all vegetable oils. Saffola when taken

as a part of a low saturated fat diet may help reduce cholesterol levels. Lowering of

cholesterol is known to reduce the risk of heart disease (C.H.D).

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Saffola Gold - Dil Ko Rakhiye Jawan

Saffola Gold has the internationally proven formula of 70% Rice Bran Oil (RBO)

and 30% of Safflower Oil (Kardi oil). This has also been proven effective in

Indian research.

(9 ) Sil Jam

Sil is a processed food brand. It has a wide range of exciting products such as

Jams, Sauces, Baked Beans, Chinese Vinegar, Sweet Corn Soup and Mayonnaise.

Sil stands for products that offer "Lip-Smakin' Goodness".

BRAND OF COMPANY AND CUSTOMER

FOCUS

BRANDS TARGETED CUSTOMER'S

PARACHUTE Primary Target Women Of All Age's

PARACHUTE ADVANCED

Young Girls (College & School Going)

HAIR & CARE Appealing To Both Men & Women of All Age's

Primary User the Young Age Group

SHANTI AMLA Customer Looking for Value for Money (H.OIL+Badam)

SILK & SHINE Primary Target Female Of age 18 – 34 (SEC, AB)

AFTER SHOWER Primary Target Young Males 18 – 34 (SEC.AB)

MEDIKER Young Children Age Group 3-13 (Due to Lice Problem)

SWEEKAR Primary Target Housewives (Due to Economic+Healthy

Life for Family)

SAFFOLA All Health Conscious Consumers (Specially for Heart

Patient's)

REVIVE Housewives of Urban Area (Higher & Middle Class).

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3.1 VISUALIZATION OF HOW WORK IS CARRIED OUT

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Research Design

Formulating Research Objective

Conclusion & Suggestions

Interpretation

Data Collection by Field survey

Sampling Plan

Data Collection Design

Processing & Analyzing

Problem Statement

1) PROBLEM STATEMENT

I was given an opportunity to work with Marico as a Sales Management trainee

during my winter project that lead me to learn a lot and identify the Problem,

especially in their rural distribution line. To have effective distribution, especially for

FMCG Company like Marico it should take utmost care of the Intermediaries involve

in the process of moving the product from the Production House to Ultimately the

End User. For this a company need's to have satisfied Intermediaries (i.e.

Stockiest,Wholeseller's & Retailer's). Thus in order to assess their satisfactions level

on different parameter's I have undertaken a Market research with Objective of

Assessing the "Satisfaction Level of Retailer's & Wholeseller's" for the area of

Sanjan,Vapi,Udwada & Killa Pardi along with some small town's in rural area's.

The Following factors lead me to do so:

Sales of Rural Area was Slowly Decreasing, Per Retailer

Business (Per Annum) was also Declining Marginally.

During my training period I Personally felt that retailers

were not completely satisfied by marico on various

parameter's

Company wants to Identify it Flaws in Delivery, Product

Defects,& many other factors specified in

Questionnaire.

Company wants to know the most preferred Trade

Promotion offer by the retailers.

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2) RESEARCH OBJECTIVE: For any fmcg company to have efficient distribution channel needs to have satisfied

intermediaries, so that they hold with company products and provide them to end user.

Thus I selected my research objective as:

"Identifying Satisfaction Level's of Retailers & Wholeseller's"

Sub Objectives are as under:

To Identify the area of service in which company needs to Improve.

To identify the Strengths/Weakness of Company delivery system in rural

area.

To know whether Wholeseller is able to satisfy the retailers need in their

specific area or not.

To help the Company in designing proper strategies for rural area.

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3 research design

3.1 Purpose of study: - Descriptive

The objective of the study is that "Identifying Satisfaction Level's of

Retailers & Wholeseller's"The study focuses on the satisfaction level for

different products. As well as on other parameter's such as Commission, Delivery

mechanism, Sales Force, Credit Period.etc.which are very crucial in assessing the

satisfaction level and for identification of strength's of marico and flaws where the

company need's to be improve. However, study may not focus why this factors effects

the individual’s satisfaction level regarding different parameters and exactly up to

what degree.

3.2 Degree of research question crystallization: - Exploratory study

As per my objective of the research, the research questions would try to find out the

current situation in the market regarding the satisfaction level of retailers and

Wholeseller's. Moreover, the hypothesis is not pre-defined here, but it would be

define during the study. Here research problem is also general.

3.3 Research control of variables: - Ex post facto design

I am reporting what has actually happened in the market and what is still happening in

the market specifically in my sampling area. I personally do not have any control on

responses and variation in the sense of being able to manipulate them. I have also not

influence any variables, to do so to introduce bias on my side.

3.4 Time dimension: - Cross-sectional

Here the study will be carried out once and it would represent a snapshot of one point

in time. Time duration, in which study must be competed, is the limitation and that is

why the cross-sectional is the best alternative.

3.5 Method of data collection: - Interrogation & Personal Interview

Based on my initial observation, I have prepared a questionnaire to collect the

response from retailers and whole sellers as primary data. Versatility of the

questionnaire will help to cover almost all related factors impacting the satisfaction of

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the target sample. Interrogation takes less time than observation and gives information

that is more purposeful

.

3.6 Topical scope:- Statistical study

This study attempts to capture a population’s characteristics by making interference

from a sample’s characteristics. Hypothesis will be tested quantitatively.

Generalization about findings will be presented based on representative ness of

sample.

3.7 Research environment: Field study.

Survey is the main part of the study and primary data collection. So that the study will

be carried out in field, I have gone to the market and interviewing retailer's and

Wholeseller's in the area of Sanjan,Bhilad,Sarigam,Udwada,Vapi,Killa Pardi and

other interior villages associated to this towns.

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4 DATA COLLECTION & DESIGN

4.1 Data source: Primary source

To satisfy the objective of the research it is necessary to get the response from the

respondents, which act as primary source of data. I have collected Primary data by

personally surveying Retailer's & Wholeseller's in the sampling area specified.

4.2 Approach: Interview (Personal Contact)

4.3 Instrument: Questionnaire

Questionnaires Designing:

It is the most crucial part of any market research. I have taken a due care in

designing the Questionnaire for my research. I have meet more than 200 retailers

during my training period in order to learn the Order taking Mechanism, POP

Displays, Competitive Products, Retailers Attitude towards sales force etc.

Even from Area Sales Manager I identified various Parameters to be listed in my

questionnaire's have taken utmost care in deciding right question, correct

sequence, what should be wording of each & layout of questionnaire as a whole.

Type of Questionnaire: Structured Non Disguised

I have arranged the questions in a specific order to get the facts and the

interviewer be asked to response strictly in accordance with a pre-arranged order.

The objective of the survey was disclosed every time before getting the response

from the respondent .

Type of Question: Close Ended

Number of questions: 11 (For Retailer's) 4 (For Wholeseller's)

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5 SAMPLING PLAN

Sampling Area :Sanjan to Killa Pardi (Rural Line)

Sample Population : Retailer's and wholesalers of the south Gujarat rural

Distribution Line.

Sampling Area : Sanjan to Killa Pardi (Rural Line)

Sample Size : 150 Retailers + 30 Wholeseller

Method Of Data Collection : Personal Interview

Sampling technique : Convenience Sampling

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QUESTIONNAIRE ANALYSIS(of retailers)

Q1). From how long you are associated with the company? < 5 years 5 -10 years 10-15 years >15 years

CHART 1 Association Of Retailers with Company

1327

71

39

01020304050607080

Responses

<5 5--10 10--15 > 15

No Of Years

ASSOCIATION WITH COMPANY

Findings: From the above analysis it has been fond that majority of the respondents (i.e.

Retailers) 47% of them are associated with the company from long term i.e. 10 – 15

Years, 26% of them are associated from more than 15 yrs,18% of them since 5-10 yrs

and 9% of them say less than 5 years.

Interpretation Company is having retailer's Base that is associated with company since decades

that shows company is having a good relationship with the intermediaries.

28

. Q2) Are you satisfied with the performance of Companies Product's/Brands in the market?Indicate (1: Highly Satisfied & 5: Highly Dissatisfied)Product's/Brand's 1 2 3 4 5 Weighted

ScoreRanking

Parachute Hair Oil 54 89 0 7 0 640 1Hair & Care Oil 33 97 6 14 0 599 4Shanti Amla Oil 0 23 4 115 8 342 7After Shower Cream/Gel

7 20 94 19 10 445 6

Silk & Shine. 23 118 5 4 0 610 3Saffola Edible Oil 28 117 3 2 0 621 2Sweekar Edible Oil. 11 93 3 37 6 516 5

CHART- 2 Satisfaction of Retailers for Various Brands's of Company

640604

342

445

610 625

516

150

450

750

Parachute Hair &Care

S.Amla A.Shower Silk &Shine

Saffola Sweekar

Brands

We

igh

ted

Sc

ore

Findings: From the above analysis it was analyzed that majority of the marico products are

perceived to be satisfactory by the retailers. Parachute has got weight of 640, Hair &

Care has got total points as 599,Saffola 621 which are above the average score. Where

as Shanti Amla has got 342, after shower has got 445 and Sweekar oil has got 516 that

is above the average score.

29

Interpretation: Retailers are satisfied with Parachute,Hair& Care & Saffola & Sweekar

Retailers are mostly neutral for the New Product Parachute after shower as it is

still new in the market

Retailers are dissatisfied with S.Amla oil. But the score of Shanti Amla is lowest it

means that majority of retailers are dissatisfied with the Product.

The ranking assigns shows the satisfaction level of Retailers where Parachute is

ranked 1st based on weighted score & Shanti Amla 372 at 7th ranked

INDIVIDUAL BRAND PERFORMANCE EVALUATION ON DIFFERENT PARAMETER'S (Weighted Average)

Rank Points1 52 43 34 25 1

Max.Score Average Score Min. Score

H.Satisfied Satisfied Neutral Dissatisfied H.D

(Evaluation: If the Score of more than 3 Parameter's is less than average score than it is Dissatisfactory Brand and vice Versa)

30

750 450 150

750 450600 300 150

1. PARACHUTE (Score 640)Rating (1:V.Good & 5: Very Bad).

Parachute Hair Oil ProductsAttributes 1 2 3 4 5

Packaging 123 14 4 9 0Product Varieties 29 114 0 7 0Commission 20 126 0 4 0Trade Promotion Offer's 23 118 0 9 0Pricing 23 116 0 11 0

CHART – 3 Satisfactions of Retailers for Parachute Brand

Satisfaction Level

701

615 612 605 601

150

450

750

Attributes

To

tal

po

ints

Total points 701 615 612 605 601

Packaging P.Varities Commisio T.P Offers Pricing

Findings: From the above analysis it has been found that Parachute was rated as satisfied brand by the retailers. The score of different Parameters is above the average score.

Interpretation: Retailers are satisfied with brand Parachute. Overall Score of Parachute in Q1 was also above average and it score on all

parameters is also above average. Thus it can be said that it is a successful brand.

31

2. HAIR & CARE. (Score 599) Rating (1:V.Good & 5: Very Bad).



CHART – 4 Satisfactions of Retailers for Hair & Care Brand

Satisfaction Level

611

302

621 605 605

150

450

750

Attributes

To

tal

po

ints

Total points 611 302 621 605 605

Packaging P.Varities Commision T.P Offers Pricing

Findings: From the above chart it could be analyzed that retailers are satisfied by Hair & Care

brand on almost all attributes as their score is above average score, but retailers are

not satisfied with product varities in hair & care as it score is less than average score.

Interpretation: Hair & Care is a brand by which majority of retailers are satisfied. Retailers are not satisfied with product varities.Hair & Care has only 2 variants

thus retailers want more variant in the Product.

32

3. SHANTI AMLA (Score 342)Rating (1:V.Good & 5: Very Bad).



CHART – 5 Satisfactions of Retailers for Shanti Amla Brand

Performance Evaluation of ShantiAmla

150

450

750

Attributes

To

tal

po

ints

Total points 341 317 599 702 388

Packaging P.Varities Commison T.P.Offers Pricing

Findings: From the analysis of Q2 it was identified that S.Amla had the least score and

retailers were dissatisfied with the Brand. The analysis here clearly shows that

retailers are dissatisfied with Packaging & Product Varities & Pricing as their score

is less than average score, where as they are satisfied with commission, trade

promotion offers.

Interpretation: Shanti Amla is poor at Packaging and in terms of Product Variants

Commissions & Trade Promotion Offers are in accordance with retailers

expectation.

33

4. AFTER SHOWER (Score 445)

Rating (1:V.Good & 5: Very Bad).Parachute Hair Oil Products

Attributes 1 2 3 4 5Packaging 0 19 7 120 4Product Varieties 0 10 10 117 13Commission 23 112 6 9 0Trade Promotion Offer's 112 33 0 5 0Pricing 40 78 13 15 4

CHART – 6 Satisfactions of Retailers for Parachute After Shower

Performance Evaluation of AfterShower

150

450

750

Attributes

To

tal

po

ints

Total points 618 423 350 508 430


Findings: From the analysis it was found that retailers are satisfied with packaging & trade

promotion offer for this brand, But they are dissatisfied with commission & product

varities in the brand. Where as for Pricing still they are Neutral

Interpretation:

Packaging & Trade Promotion Offers are satisfactory for retailers for the Brand

Product Varities & Pricing are the attributes on which major of the are still

neutral as this product is in introductory stage, retailers cannot judge it on

parameters.

34

Retailers are Dissatisfied with the Commissions provided to them there seems

some problem with commission system of company on this Brand

5. SILK & SHINE (Score 610)



CHART – 7 Satisfactions of Retailers for Silk & Shine

Performance Evaluation of Silk&Shine

150

450

750

Attributes

To

tal

po

ints

Total points 622 0 620 702 579


Findings: From the analysis of Q2, it was analyzed that retailers were satisfied with the

brand/product silk& shine as it got score more than average.Furthur the analysis of

Brand on different attributes also shows high satisfaction level of retailers as weighted

score of all attributes is more than average score. Silk & Shine is not having any

product variant thus the responses are nil on this attribute.

Interpretation:

Silk & Shine is rated as satisfactory Brand by majority of Retailers.

Trade Promotion Offers given on this brand is Highly Satisfactory for retailers.

Packaging & Commissions given is also good that contributes to success of brand

and retailers satisfaction.

35

6. SAFFOLA (Score 621)



CHART – 8 Satisfactions of Retailers for Saffola

Performance Evaluation of Saffolae

150

450

750

Attributes

To

tal

po

ints

Total points 620 620 363 310 570

Packagin P.Varities Commisi T.P Pricing

Findings: From the analysis of weighted score for each attribute it has been identified that

retailers are satisfied with Packaging, Product Varities & Pricing of the Brand as their

score are above the average score. But they are dissatisfied with Product Varities in

the brand as well as not satisfied with the commission given to them on this brand.

Interpretation:

Saffola is a Premium Brand of Marico and retailers are satisfied with the Brand.

Being the Market leader in the segment Commissions & Trade Promotion Offers

are less as a result it had contributed to dissatisfied retailers but not a Major

Problem.

36

7. SWEEKAR (Score 516 )



CHART – 9 Satisfactions of Retailers for Sweekar.

Performance Evaluation of Sweekar

150

450

750

Attributes

To

tal

po

ints

Total points 596 583 356 290 297

Packaging P.Varities Commison T.P.Offers Pricing

Findings: By analyzing the W.Score for each parameters it could be analyzed that the score for

Packaging, Product Varities &, Where as score for T.Poffers and Pricing is below the

Average score and for commissions it can be said that they are not fully satisfied.

Interpretation:

Retailers are satisfied by Packaging,& Product variants in the Brand.

For commission it could be analysed that they are not satisfied nor disstaisifd but

the score suggest that commission given is less.

T.P offers are perceived to be poor according to retailers

Pricing of the product in segment is also not good according to retailers

37

Q3). Are you satisfied with the services provided by the company?

Highly Satisfied Satisfied Neutral

Dissatisfied Highly Dissatisfied

H.Satisfied 0Satisfied 32Neutral 44Dissatisfied 72H.Dissatisfied 2CHART – 10 Satisfactions of Retailers for Services provided by Marico.

0

32

44

72

2

0 20 40 60 80

Responses

H.Satisfied

Satisfied

Neutral

Dissatisfied

H.Dissatisfied

Cri

tie

ria

Findings: From the analysis it has been identified that majority of retailers (i.e.) 49% are not

satisfied with the services provided by the company. Only 21% are satisfied, Where

as 29% of them are neutral and not able to judge the services.

Interpretation:

Satisfaction Level is Poor for the Services provided by the Company.

Neutral responses are unable to judge services exactly, but if proper care if not

take to upgrade service in almost all areas than they can easily be converted

into dissatisfied retailers.

38

Hypothesis Test:

The null hypothesis is that, “Company Has Claimed That 75% of retailers are

either satisfied or neutral with the services provided by the company.”

H0: p >= 75%

H1: p< 75%.

It is one-sided, left tail test so the table value of Z is -1.64.

Here I have taken P=75% or 0.75,

So my Q is 25% or 0.25

Standard Error = √pq / n

=√0.75 * 0.25 / 150

S.E. = 0.035

Z = (p – Ph0)/SE

= (0.51 – 0.75)/0.035

= -6.857

t cal = -6.875

t tab = -1.64

Calculated value of Z is less than table value, so the null hypothesis is rejected.

So, alternate hypothesis holds true, hence we can say that percentage of satisfied

retailers with the services provided by the company is less than 75 %.

39

Q4) What is your opinion regarding the Sales Force Of the Company?



H.Satisfied 8Satisfied 109Neutral 8Dissatisfied 23H.Dissatisfied 2

CHART – 11 Satisfactions of Retailers for Sales Person of Company

8

109

823

20

20

40

60

80

100

120

H.Satisfied Satisfied Neutral Dissatisfied H.Dissatisfied

Findings: From the above analysis it has been identified that almost 75% of retailers are

satisfied with the sales person/force of the company. And marginal proportions of

them 16% are dissatisfied by sales person/force of the company.

Interpretation:

Company is having good sales people in its rural line to deal with the retailers.

Sales force of the company is good.

40

Q5) What is your opinion regarding the sales person visit in a month?

Level Of SatisfactionCriteria for Visit in Month TotalHighMediumLow

250322Inadequate107127520Adequate.181260Regular.150248442Total

CHART – 12 Satisfactions of Retailers in reference of Sales Person Visit

03

22

12

75

20

126

00

10

20

30

40

50

60

70

80

Low Medium HighLevel Of Satisfaction

Re

spo

nse

s

Inadequate

Adequate

Regular

Findings: From the above responses it could be analyzed that 71% retailers say that sales

person visit is adequate for them, where as 17% of them say its inadequate and 12%

of them say that sales person visit is Inadequate for them.

Interpretation: Majority of Retailers are satisfied by the visit of sales person in a month.

Question: Is there any relation between Monthly Visit and Level of

satisfaction of Retailers. (ANNOVA TEST)

NULL HYPOTHYSIS:

= There is no relation between Monthly Visit and satisfaction level of

Retailers

=There is direct relation between Mothly Visit and satisfaction level of Retilers

41

Q6). Evaluate the delivery system of Company on following Parameter's

TIMELINESS OF ORDERVery Timely

VeryDelay

ACCURACY OF ORDERHighly

AccurateLeast

AccurateCOMPLETENESS OF ORDER

Fully Completed

Partially Completed

Parameter for

Delivery

Weight Attached to Each

5 4 3 2 1

Timeliness2 129 15 2 0

Accuracy0 108 31 9 0

Completeness0 106 25 16 1

Parameters Max.Weight Min.Weight Actual Weight

Timeliness 750 150 595 (Satisfied)

Accuracy 750 150 574 (Satisfied)

Completeness 750 150 372 (Dissatisfied)

CHART – 13 Evaluation of Delivery System & Retailer Satisfaction Level

595 574

372

150

450

750

TIMELINESS ACCURACY COMPLETEDNESS

42

Region of dissatisfaction

Region of Satisfaction

Findings: Total Weight Achieved by the Delivery on Timeliness & Accuracy Parameter is

above the average score. Where as weighted score of Completeness as a Parameter is

less than the average score of 450.

Interpretation: Retailers are satisfied with the delivery system of the company on Timeliness &

Accuracy of Delivery

The score of Completeness Parameter shows that retailers are not satisfied with

the Completeness of the Order and Delivery given to them. Most of them revealed

that many of times either of the Brand/Products is not delivered according to

ordered or they are delivered in fewer Quantities and in some cases may be even

more than the ordered quantity. It shows some problem in delivery mechanism of

the company and poor Coordination among the Intermediaries involve in the

Process.

43

Q7) Are you satisfied with the current commission system of the company?



H.Satisfied 0Satisfied 8Neutral 2Dissatisfied 103H.Dissatisfied 37

.CHART – 14 Commission System & Retailers Satisfaction

0% 5% 1%

69%

25%H.Satisfied

Satisfied

Neutral

Dissatisfied

H.Dissatisfied

Findings: From the above analysis it has been found that almost 69% of retailers are dissatisfied

and 25% are Highly dissatisfied with the commission system of Company in general.

Satisfied retailers are very less in reference to commission system.

Interpretation: There is a serious and major problem with the commission system of the

company.

Large chunk of them are dissatisfied & even alarming is the % of highly

dissatisfied retailers. If proper thought and care might not be taken for this

issue by the company, the retailers may stop selling the companies

brand/products, if a case than would be a huge loss to company in the future.

Through Interrogation it was identified that Marico Commission is less as

compared to some local & Unbranded Players that is main reason for

dissatisfaction among the retailers.

44

Q8). How Often Do You find that Products are supplied to you are of older date's?

Mostly Sometimes

Rarely Never

Mostly 0Sometimes 9Rarely 84Never 57

CHART – 15 Frequency of Supply of Older Date Products.

09

84

57

0 20 40 60 80 100

Mostly

Sometimes

Rarely

Never

No

Of

Tim

es

Responses

Findings:

Almost 56% of responses says that products supplied to them from the company

are of older date but this happens rarely according to majority of them.38% say it

happens never.

Interpretation:

Retailers are satisfied by the product delivered to them in terms of manufacturing

date.

Though not a major one 84 responses in rarely category shows some problem in

dispatching the right goods

45

Q9). As per you what is the proportion of defective products in total quantity supplied?

0 - 2% 2 - 4%

4 – 6% > 6 %

proportions no. of respondents0 - 2% 992 - 4% 404 - 6% 11> 6% 0 Total Responses 148

CHART – 16 Frequency of Supply Of Older Date Products

proportion of defective products

90%

4% 6% 0%

0 - 2% 2 - 4%

4 - 6% > 6%

Findings:

Majority of retailers 65% of them tells that proportion of defective products supplied

to them in a year is less than 2%,where as 30% of retailers say the proportion is

aggregate about 2-4% of total business with the company, Only 5% of them say that

its between 4to6% defective.

Interpretation:

Actually, seeing to the proportion of defective products in total quantity supplied

is not so high.

It shows the Effectiveness of Product Handling & Delivery Mechanism and

Quality Standard as well as Packaging standard that marico thrive upon.

46

Hypothesis Testing

Ho= Proportion of Defective Products is less than 3% of material supplied in a year

H1= Proportion of Defective Products is more than/equal to 3% of material supplied in a year

µHo < 3 % (Null hypo)

µH1 = 3 % (Alt Hypo)Significance level: 5 %

It is one- tail test.

Proportions X f d fd fd2

0- 2 % 1 97 -2 -194 388

2- 4 % 3 44 -1 -44 44

4- 6 % 5 7 0 0 0

>6 % 6 0 1 0 0

fd =-238 fd2 =432

X = A + fd/N

= 5 - 1.58

= 3.39

= sqrt [fd2/n – (fd/n)2]

= 0.577

S.E. = 0.047

= (x -)/ S.E

= (6.58-3)/0.047

= 8.263

z cal = 8.263 z tab = 1.645

Calculated value of Z is more than table value, so the null hypothesis is rejected.

So, alternate hypothesis holds true, hence we can say that proportion of defective

product is more than or equal to3 percent of total material supplied.

47

Q10). Which are the trade promotion schemes that you like the most? Rank Them 1 to 5. Gift articles Coupons/contest Cash discounts Tours

Bonus PacksCriteria 1 2 3 4 5 TotalGift articles 12 6 70 50 12 150Coupons/contest 8 87 22 21 12 150Cash discounts 91 27 24 8 0 150Tours 19 15 9 8 99 150Bonus Packs 20 15 25 63 27 150Total 150 150 150 150 150 750

CHART – 17 Ranking of Different Trade Promotion Schemes Offered to Retailers

1

2

3

4

5 Gift articles

Coupons/Contests

Cash discounts

Tours

Bonus packs

20

15

25 63

27

19

15

9

8

99

91

27

24

8

0

8

87

22

21

12

12

670

50

12Rank

S. P activities

Ranking for Different Trade Promotion Offers

Gift articles 12 6 70 50 12

Coupons/Contests 8 87 22 21 12

Cash discounts 91 27 24 8 0

Tours 19 15 9 8 99

Bonus packs 20 15 25 63 27

1 2 3 4 5

Findings:

48

From the above responses and ranks assigns it can be identified that gift articles rank

3rd, Coupons & Contest as 2nd, Cash discount as 1st, Tours as 5th and Bonus Packs as

4th by majority of responses as compare to total responses for each option

Interpretation: Most Preferred Trade Promotions by retailers is Cash Discount given by the

company.

Coupons/Contest is also preferred but astonishingly retailers least preferred Tours

as measure of trade promotion.

49

Q11). Evaluate marico on following Parameters's/Activities?(1: V Good & 5: Very bad)

Activities Ranking Total Responses1 2 3 4 5

POP Attractiveness 18 107 14 9 2 150Order Taking 36 87 16 11 0 150Billing/documentation 0 53 20 27 23 123Credit Period Alloted. 0 0 10 117 23 150Market Performance 10 93 24 17 6 150P.Margin 0 22 10 49 20 101Clains Settlement 0 0 0 127 23 150

Rank Points1 52 43 34 25 1

Activities Max.Score Min Score Average Score Actual Score

POP Attractiveness 750 150 450 580

Order Taking 750 150 450 598

Billing/documentation 615 123 369 349

Credit Period Alloted. 750 150 450 287

Market Performance 750 150 450 534

P.Margin 505 101 303 236

Claim Settlement 750 150 450 277

50

Findings:

From the above responses it could be analyzed that POP attractiveness' has got

score of 580 that is above the average score.

Order taking mechanism of Marico Company has also got score of 598 above the

average score.

For Billing/Documentation only 123 retailers have given responses. Therefore the

average score comes to 369 and the actual score is 349 which is less than the

average score.

For Credit Period allotted the score is 287 which is lowest among all and very less

than the average score.

In terms of Profit Margin that retailers earn on the Product of Marico the

responses were provided by only 101 retailers. It's actual score is 236 which is

also less than the required average score for that attributes/activities

Claim Settlement is the parameter where the score is lowest among all the

parameters

Interpretation: POP attractiveness is Good according to retailers

Order taking mechanism is also satisfactory and according to retailer's

requirements.

1.5

4.5

7.5

Hu

nd

red

s

W.Score 580 598 349 287 534 236 277

PoP Attrac. Order Taking Bill/DocC.Period

AllotedM.Performan

ceProfit Margin

Claim Settlement

51

Most of the retailers says that they do not take bill because of VAT problem, and

analyzing the score it shows that retailers are dissatisfied with

Billing/Documentation system of the company.

Credit period allotted is also rated poor by retailers it shows some problem in

credit allotment to retailers either by intermediaries or the company itself.

Most of the retailers refrain from answering the question, but from the responses

given and analyzing the score retailers perceive the Profit margin of the company

to be less.

Company claim settlement system is extremely poor. Retailers are highly

dissatisfied with the system

QUESTIONNAIRE ANALYSIS(of Wholeseller's)

Q1) Do you buy the products of Marico from other Supplier than the stockiest of

your area?

Yes NoYes 26No 4

CHART – 19 Wholeseller's Responses for Purchase Other than Area Stockiest.

0

5

10

15

20

25

30

Yes No

Wh

ole

sell

ers

Resp

on

ses

52

Findings:

From analyzing the responses of Wholeseller it could be analysed that 87% of

responses say that they purchase marico products from other purchase destination. and

only 14% of the responses say that they do not purchase from other area than stockiest

of their own area

Interpretation: Most of the Wholeseller's purchase product from the other area.

Purchasing is done mainly form outside in order to meet retailers order and due to

unavailability of specific product with stockiest.

Q2) Are you satisfied by the services given to you by the stockiest of your area?Indicate (1: Excellent & 5: V.Bad)Services Provided 1 2 3 4 5 Total

ScoreVan Delivery 4 26 0 0 0 124Order Taking 5 21 0 3 0 115Claim Settlement's 0 0 0 25 5 55Product Availability 0 17 2 11 0 96Credit Period Alloted 0 8 0 22 0 76Discount/Margin 0 18 0 11 1 95

Rank 1.Score5 & Rank 5 Score 1

Min Score: 30 & Max Score 150.Average 90

CHART – 20 Evaluations of Services Provided by Stockiest to Wholeseller

53

124115

55

96

76

95

30

150

Series1 124 115 55 96 76 95

Van Delivery

Order taking

claim settleme

Pr.Availability

Credit Alloted

Discount/Margin

Findings:

From the above analysis of W.Score for different services provided by the

stockiest to Wholeseller's it is analysed that services like V.Deliver,Order Taking,

have score more than 100 which is above average score

Other Services like C.Settlement,Credit Period allotted and discount margin have

scored less than 90 which is below the average score

Product availability is also 96 points.

Interpretation:

Wh.sellers has rated V.good to van delivery by majority of them it shows they are

satisfied by the service.

Order taking is also rated V.good it also shows Wh.sellers are satisfied

Claim Settlement has got least point rated Bad by majority of respondents. There

is some problem in the claim settlement system and Wh.sellers are not satisfied

Credit Period allotted by stockiest to them is perceived less thus it is rated bad by

majority of respondent showing they are dissatisfied by credit period allotted

54

Discount/P.Margin & Product availability given to Wholeseller's is perceived to

be average as score shows that it is just up the average score.

Q3) How often you buy the marico products from other Supplier and not of your

area?

Mostly Sometimes

Rarely Never

Mostly 0Sometimes 8Rarely 22Never 0

Stockiest of U.Area 7Wh.sellers of U.Area 2

55

Stockiest of other R.Area 21Wh.sellers of other R.Area 0

CHART – 20 Wholesellers Purchasing Frequency & Destination other than Area Stockiest

Stockiest of U.Area23%

Wh.sellers of U.Area

7%

Stockiest of other R.Area

70%

Sometimes27%

Rarely73%

Findings:

Form the above analysis it could be identifies that Wholeseller's purchase product

from the other area which happens rarely and according to 8 respond ants it happens

sometimes. Most preferred destination for purchasing is Stockiest of other rural area

for most of the wholesalers.

Interpretation:

Product Availability with the sockets is a area of Concern for the Company. Most of the times local Wholeseller has to purchase products from other rural

stockiest in order to meet the retailers order. There seems a problem between C& F agents& Stockiest in order Taking and

delivery which need to be readdressed by the company.

Q4) Which are the Product's that you buy from the other suppliers majority of times other than the stockiest of your own area? (More than 1 response)

Hair Oil Category 3Hair Care Category 36Edible Oil Category 18Other Products 8

CHART – 21 Category of Products that are unavailable from local Stockiest

56

3

3618

8

Hair Oil Category

Hair Care Category

Edible Oil Category

Other Products

Findings:

As from the above analysis it has been found out that majority of retailers buy the hair

care product's from other stockiest as it has 36 responses, edible oil is bought from

other location according to 18 responses.

Interpretation:

It can be said that the Hair Care category that includes silk & shine, Mediker, &

After shower are the products which are not efficiently distributed by the company

The problem might be at C & F agent, or stockiest that the company needs to

identify and work upon it so that distribution of such products cab be turn in lieu

of demand from the Wholeseller's and local retailers.

Q5) Approximately how much of your order from retailers are impacted/affected due to cutting problem or defective products supplied to you?

0 - 5% 5 - 10%

10 – 15% 15 – 20%

0-5 205-10 8

10-15 2

15-20 0

57

CHART 22 – Percent of Order Loss to Wholesellers due to Defective/Cutting Problem

20

8

2 00

5

10

15

20

25

0-5 5-- 10 10-- 15 15-20

Percentage Of Order Loss (PA)

Res

po

nse

s

Findings:

From the responses it could be anlysied that wholesleers average business or order are affected by 0-5% according to 20 responses, 5-10% according to 8 repsonses

Interpretation: The cutting problem is definitely impacting the wholesalers business

Wholeseller's order are not met in time in return it impacts retailers order and

ultimately product availability to end user

Company shoulds try and bring down the percentage defect in product that

may cause due to transportation, improper handling or packaging etc

HYPOTHESIS TESTING

Null hypo: Less than 10% of sale is affected due to defective products or cutting problem

µHo < 10 % (Null hypo)µH1 = 10 % (Alt Hypo)Significance level: 5 %

It is one-tail test.

58

Proportions X f d fd fd2

0- 5 % 2.5 20 -2-40 80

5- 10 % 7.5 8 -1-8 8

10- 15 % 12.5 2 00 0

15-20% 17.5 0 10 0

N= 30

fd =

--48

fd2 =88

X = 12.5 + fd/N

= 12.5 + (-1.60)

= 10.9

= sqrt [fd2/n – (fd/n) 2]

= √ (88/30)- (-48/30)2

= 0.61

S.E. = 0.112

= (x -)/ S.E

= (10.9-10)/0.112

= 8.03

z cal = 8.03

z tab = 1.645

Calculated value of Z is more than table value, so the null hypothesis is rejected.

c less than 10 percentage of sales is affected by cutting problem

mead point frequncy d fd fd*d0-5 2.5 20 -2 -40 805-10 7.5 8 -1 -8 8

10-15 12.5 2 0 0 0

15-20 17.5 0 1 0 0

30 -48 88

MEAN 10.9SD 0.611

59

SE 0.112Z 8.068table value 1.645

CONCLUSION OF THE STUDY.

(Based on Retailer's Responses)► Company Marico has strong and long term association with the retailer's in rural

area's

► Parachute is the most satisfied Brand/product, followed by Saffola, Silk & Shine

Hair & Care, and Sweekar Edible Oil & after Shower Gel, but the Brand Shanti

Amla is area of concern as it is regarded to be dissatisfied brand.

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► The Individual Product/Brand Satisfactory Chart is as under:

PARACHUTE

It is a Satisfied Brand of the company and satisfaction is high on all

parameters (i.e.) Packaging, Product Varities, Commssion. T.P Offers and

even pricing is effective.

HAIR & CARE

It is satisfactory brand of the Company. Satisfaction level is high on other

parameters as mentioned above but the product variants in this brand are

just two which according to retailers are less and thus they are dissatisfied

with the brand on this parameter.

SHANTI AMLA

It is Dissatisfied Brand of the Company,Packaging & Product Varities are

the parameters on which company is lacking resulting into dissatisfaction

among the retailer's

AFTER SHOWER

It is a new Product therefore it is neutrally rated on Product Varities and

Pricing but retailers are dissatisfied by the commission given given on this

brand. and they are satisfied by Packaging and Trade promotion offers

given on this brand

SILK & SHINE

It is Satisfactory brand almost on all Parameter's. There are no Product

Varities in this Brand.

SAFFOLA

It is a satisfied Brand. Retailers are satisfied by Packaging, Product

Varities and Pricing of this Brand but that are dissatisfied by the

Commission given and T.P offer's given to them as they perceive it to be

less than as compared to other competitor's in the same product category.

SWEEKAR

It is a dissatisfactory Brand. Retailers are dissatisfied by commission, T.P

Offer's and pricing they perceive it to be high as compared to competition.

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► Company is having efficient Sales Force and their Visit to retailers for order

taking is also adequate and satisfactory.

► Company is providing Timely & Accurate deliveries of goods to it's rural line

retailer's but the Completeness of Order is not maintained. According to retailers

they say that sometimes company sends more of the same Brand or less of the

same or sometimes the entire order is not according to prescribe order quantity. It

shows that deliver system is efficient and effective but the Dispatching is the area

where company needs to improve.

► There is some definite problem with the commission system and commission paid

to retailers by the company. Majority of retailers are dissatisfied by commission

system. Another Market research is required specifically on Brand v/s

Competitions v/s Commission paid to retailers.

► Proportion of Defective product is less which shows effectiveness of product

handling, efficiency of delivery mechanism and the quality and packaging

standard's that the company follow's

► Most preferred trade promotion is Cash Discount, followed by Coupons at 2nd,

Gift Articles at 3rd, Bonus Pack's at 4th & Tours at 5th ranking.

► Credit Period & Profit Margin allotted to retailers by the company is perceived

to be less and thus they are dissatisfied on this parameter

► Claim Settlement System of the company is Extremely Poor. Company need's to

make it efficient and faster.

(Based on Wholeseller's

Responses)► Large chunk of Wholeseller's purchased goods from the stockiest other than of

their own area which shows product availability with wholesalers is not enough

to match the order of retailers.Wholeseller's mainly purchase from the stockiest of

other rural area in such situation

► Wholeseller's are satisfied with Van Delivery of goods to them by their area

stockiest. They rate it good along with order taking mechanism.

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► Claim Settlement and Credit period given to Wh.sellers by the company is rated

poor which shows that retailers are dissatisfied by company on this parameter's

► Wholeseller mainly Purchase Hair Care Products and s from other Stockiest

which shows that this product are not supplied according to retailers and whole

sellers order by the company stockiest to whole sellers.

RECOMMENDATION

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marico indiustries ltd

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