projectdistributionchannels okkk

7/23/2019 Projectdistributionchannels Okkk

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TRAINING REPORT

ON

"DISTRIBUTION NETWORK OF

FAST MOVING CONSUMER GOODS"

IN CONTEXT TO BUNGE INDIA PVT LTD, RAJPURA

IN THE PARTIAL FULLFILMENT FOR THE

DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF :- SUBMITTED BY :-

Mr. AJAY GUPTA RAMINDERJIT SINGH

PATEL INSTITUTE OF MANAGEMENT TECHNOLOGY


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DECLARATION

Raminderjit Singh hereby declares that the project report entitled "EmployeeMotivation " at Bunge India Pvt Ltd , Rajpura ,submitted by me or the a!ard o"Master o Business dministration under Punjabi university , Patiala is the original!or# conducted by me and the material has neither been copied nor reproduced romany other sources $ %he data provided in the study is correct to the best o my

#no!ledge and beneit$

! RAMINDERJIT SINGH


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ACKNOWLEGEMENT

%he entire project rom the very idea o it to reality !ould not have been possible!ithout the guidance and support o many people$ I !ould thereore li#e to ta#e thegolden opportunity o e&pressing my sincere and proound gratitude to all those people!ho helped me throughout the projectI e&press my sincere gratitude to management o "B'()E I(*I P+% L%*,RP'R "$ !ho accepted me as a summer trainee $-inally, I !ould e&tend my proound gratitude to the employees o B'()E I(*IP+% L%* ,RP'R or their ull co .operation during the training period


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INDEX

CHAPTER TITLE

I BS%R/%

II I(%R0*'/%I0( %0 E*IBLE 0IL I(*'S%R1

III B'()E I(*I P+% L%*

I+

/2((EL 0- *IS%RIB'%I0(S

%1PES 0- *IS%RIB'%I0( /2((ELS

-/S% M0+I() /0(S'MER )00*S

ME/2(ISM 0- -M/) *IS%RIB'%I0( /2((EL

+0BE/%I+ES 0- %2E S%'*1

RESER/2 ME%20*0L0)1

+I (L1SIS


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+II /0(/L'SI0( 3 RE/0ME(*%I0(S

+III BIBL0)RP21

I4 ((E4'RE

ABSTRACT

*istribution channels are behind every product and service that consumers and

business buyers purchase every !here$ 'sually, combination on institutions

speciali5ing in manuacturing , !holesaling, retailing and many other areas join orce

in *istribution channels$

*istribution channels is a set o inter dependent organi5ation involved in the

process o ma#ing a product or service available or use or consumption$

*istribution channels decisions play a role o Strategic importance in the overall

presence and success a company enjoys in the mar#et palace$

%his project report entitled 6 Study on *istribution /hannel !ith Special

Reerence to Bunge India Pvt ltd, Rajpura 7$ %o determine the dealer satisaction o the

product and uture demands, needs, !ants$

%he study starts !ith an introduction o the *istribution /hannel, company

proile, important o the Study, Revie! o Literature and objectives are set out or the

study$ Research methodology, data analysis and interpretation, indings and suggestions

o the study ollo!$


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%he response given by the dealers and analy5ed and interpret using dierent

types o statistical tool such as percentage analysis, chi8s9uare method$

EDIBLE OIL MARKET IN INDIA

%he Indian edible oils 3 ats industry has a mar#et si5e o :; million tons annually?? billion$ India@s consumption is gro!ingannually at ;A p$a$ ithin the industry, C?A o oils 3 ats are sold in pac#aged ormand this segment is gro!ing at D?8D;A p$a$ ith this pace, the industry !ill get ;8F?A pac#aged by D?:;$

India still depends heavily on imports and ;?8G?A o its demand is met rom importedoils


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"/onsidering current monsoon progress, I dont thin# ne&t year there !ill be any

meaningul gro!th in local edible oil supplies, but demand !ill rise," )ovindbhai Patel,

a trade e&pert rom Indias !estern city o Raj#ot, said at a regional palm oil conerence

in Mumbai$

Indias annual rains have covered hal o its landmass our days behind the usual

schedule, ailing to recover rom a late start that has slo!ed so!ing o summer crops in

a country !here hal o the armland still lac#s irrigation$

Production o the main summer oilseed crop !ould depend on the 9uantity o rainall in

the ne&t t!o months, said Patel, !ho has been in the edible oil trade or more than our

decades$

India is e&pected to import on an average :$?; million tonnes o edible oil, including

??,??? tonnes o palm oil, each month until the end o the current year in 0ctober,

said Patel, a managing partner at )) Patel 3 (i#hil Research /o$

In May, India shipped in :$?D million tonnes o edible oil, including G;C,D;; tonnes o

palm oil$

*orab Mistry, !ho heads the vegetable oil trading arm at Indias )odrej Industries, also

e&pects the countrys edible oil imports to rise in the ne&t ive months due to a delay in

soybean so!ing$

India mainly buys palm oils rom Indonesia and Malaysia, and small 9uantities o

soyoil rom Latin merica and sunlo!er oil rom Blac# Sea nations$

Patel e&pects Indias imports o sunlo!er oil to rise to a record high o :$C; million

tonnes and soyoil to :$; million tonnes in D?:HJ:C$ 2e said the share o palm oilimports in total edible oil shipments !ould drop as prices or lo! density oils such as

soy and sunlo!er have turned competitive$

In D?:DJ:H, Indias palm oil purchases o F$H million tonnes accounted or F? percent o

the total edible oil imports, !ith soy and sunlo!er oils accounting or the remaining D?

percent$


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CURRENT SCENERIO OF EDIBLE OIL IN INDIA

*espite the increase in oilseed output, India@s dependence on imported edible oil is setto hit a record high this year$ %he increasing direct consumption o oilseeds, includingsoybean, mustard seed and groundnut, has reduced their supplies available or crushing$

%his oil year


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!eight=$ Per capita consumption is increasing t!o8three per cent every year$ ccordingto *orab Mistry, director o )odrej International, India@s per capita edible oilconsumption !ould rise to :C$CH #g in D?:H8:C rom :H$>D #g the previous year$

%he inancials o edible oil companies are li#ely to improve in the coming 9uarters,

o!ing to higher revenue gro!th on account o increased high sea sales and reinerysales$ ith an increase in the proportion o the higher8margin reinery sales to overallsales, the proitability and margins o companies are li#ely to improve signiicantly inD?:C8:; compared to the levels seen in D?:H8:C and D?:D8:H, India Ratings orecasts$%he agency e&pects ully integrated reiners !ith !ider product portolios to beneitmore than those !ith limited product diversiication$ /ompanies !hose portoliosinclude branded products !ill see additional gains$


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Mr#$% Tr$&'(:

India is the !orld@s ourth largest edible oil economy, ater 'S, /hina andBra5il, !ith :;,??? oil mills, :: solvent e&traction units, and DGCvanaspati plantsK and over :,??? reineries employing more than onemillion people$

%he total mar#et si5e is at Rs$ G?? billion and import8e&port trade is !orthRs$:H? billion$

India being deicient in oils has to import C?A o its consumption

re9uirements$

%he domestic turn over o the vegetable oil industry is Rs$?,??? croresand import8e&port turnover o about Rs$:G,??? crores per annum, consisto Rs$:?,??? crores or import o edible oils 3 Rs$G,??? crores or e&port o ilmeals,oilseeds castor oil, groundnut oil 3 vegetable ats o tree borneoilseeds$

Indias edible oil industry is gro!ing at an compounded annual gro!th rate? per cent$ By rationali5ing the import duty, the gro!th rate osector may rise up to :;? per cent by D?:?$

%he total si5e o the olive oil mar#et in India is around C million euro interms o value and D,??? tonnes in terms o volume, out o !hich Spanishcompanies command a share o about G?A$

/urrently, India accounts or $CA o !orld oilseeds outputK G$:A o !orldoilmeal productionK H$>A o !orld oilmeal e&portK ;$FA o !orld vegoil

productionK ::$DA o !orld vegoil importK and >$HA o the !orld edible oilconsumption$

India consumes over C$; million tons Palm 0il and other Palm 0ilProducts per annum, !hile domestic production o /rude Palm 0il in India is hardlyG?,??? tons per annum and rising very slo!ly$


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CHAPTER - II


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BUNGE INDIA PVT. LTD.

/ompany being established as BUNGE FOUNDS BUNGE CO. INAMSTERDAMin :F:F, %he (etherlands, as an importJe&port trading irm, Bunge

!ill maintain a prominent role in !orld grain mar#ets$

My Project is the study o Employee Motivation$

%he study !as conducted at the oice o Bunge India Pvt$ Ltd$,

Patiala 8 /handigarh Road, Rajpura

Punjab 8 :C? C?:$

%he project !as o C; days duration$ *uring the project I intervie!ed the

e&ecutives 3 sta to collect the data, 3 also made use o company records 3 annual

reports$ %he data collected !ere then compiled, tabulated and analy5ed$


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Bunge is a leading agribusiness and ood company !ith integrated operations thatcircle the globe, stretching rom the arm ield to the retail shel


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originating oilseeds and grains rom the !orlds primary gro!ing regions and

transporting them to customers !orld!ideK

crushing oilseeds to ma#e meal or the livestoc# industry and oil or the ood

processing, ood service and biouel industriesK

producing bottled oils, mayonnaise, margarines and other ood products or

consumersK

crushing sugarcane to ma#e sugar, ethanol and electricityK

milling !heat and corn or ood processors, ba#eries, bre!ers and other

commercial customersK and

selling ertili5er to armers$


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HISTORY


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BUNGE LIMITED HISTORY

/ompany being established as B'()E -0'(*S B'()E 3 /0$ I( MS%ER*M

in :F:F, %he (etherlands, as an importJe&port trading irm, Bunge !ill maintain aprominent role in !orld grain mar#ets$

In :>H; , Bunge builds it irst major grain handling acility in Mid!ay, M(, and

becomes an originator o grain in (0R%2 MERI/$

In :>G , Bunge e&pands at *estrehan by building its irst 'S Soybean processing

plant$

In D??, Bunge purchases its irst sugarcane mill in bra5il and orms a ertili5er joint

venture in Morocco$

I( DH une D??H, 'S8based agribusiness and ood company Bungehas announced that

it has signed a memorandum o understanding !ith 2industan Lever to ac9uire the

Indian consumer goods irm@s edible oils and ats businesses based in Bangalore, India$

In DD Sep$ D??H, 'S agribusiness giant Bunge has announced that its Indian subsidiary,

)ee Pee /eval Proteins and Investment, has ac9uired the India8based assets o Prestige

-oods$

In :; 0ct$ D??C,'S agribusiness Bunge is to invest bet!een 'S:??m and D??m in

India over the ne&t ive years, its Indian subsidiary has said$

In D: *ec$ D?::, 'S agribusiness giant Bunge is set to buy the edible oils and ats

business o Indias mritBanaspati$
http://www.just-food.com/companies/bunge_id18http://www.just-food.com/companies/bunge_id18


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CORE VALUES

Bunges ive core values relect !ho !or#ers are and !hat they do$

%hey ensure the eectiveness o integrated and decentrali5ed approach and help us

achieve purpose o improving the global agribusiness and ood chain$

I&%$)r*%+

Honesty and fairness guide every action.


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T$r#

value individual excellence and work as a team for the benefit of Bunge

and stakeholders.

C*%*/$&(0*1

contribute to the development of individuals and the social and economic

fabric of communities, and act as stewards of the environment.


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E&%r$1r$&$2r(0*1

prize individual initiative to meet opportunities and deliver results.

O1$&&$(( &' Tr2(%

open to other ideas and opinions, and trust its colleagues.


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STRATEGY

/ompany strategy capitali5es on the undamentals

that drive its industry$ It is

strengthening its core businesses in #ey

origin and destination mar#ets, e&panding

into adjacent gro!th businesses !here

it can leverage its strengths, and ocusingon operational e&cellence$


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VISION AND MISSION

%he company aims at successully meeting the varied needs o the Indian

consumers$ %he /ompany has continuously Endeavored to bring ne! products to the

Indian /onsumer the /ompany stayed close to its roots nature and it has been a

platorm or its success or several years$

M*((*& S%%$$&%

%he mission statement o Bunge India Pvt Ltd$ Rajpura is N@%o produce and sell

goods and service to achieve the highest return on sales in the Industry to total

satisaction o customers , employees and Share holders in that order$

324*%+

Rajpura Branch o Bunge India Pvt$ Ltd$ has a good Ouality control system

together !ith Research and *evelopment !hich is comparable to its best in the

Industry$ It is to the /redit o its good Ouality /ontrol system and eicient R and *

*epartment, that Bunge India Pvt$ Ltd, Rajpura has been honored and a!arded$

6%he merican International Ouality /ertiicate and )old Medal$@@


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PRICING STRATEGY OF BUNGE INDIA

Pricing decision eects the overall mar#eting s#ills and consumer acceptability$ hilethe e&ternal orces in !hich the commercial establishment to operates has to be ta#enon the account but the internal orces its strength and !ea#nesses the companyobjectives etc have vie!ed in the competitive ield $ Edible oil prices is aected notonly because o national and international mar#et variation but because o the internalactors such as government ra! oil import policies prices o other oils used in mi&tureand the total e&pected output o oil need crops $ %he interstate ban on supply o the raoils also aect the pricing o the product$

hile mar#eting the price structure the mar#eter has to !atch careully the pricingstrategy adopted by the competitors$ %he pricing structure !hich represents the marginto the distributors, retailers etc has an impact on the sales o the product , the pricingstructure o Bunge India Rajpura is as belo! 8

H8:JD A dealers margin

;8:JD A retailers margin

Bunge India also covers the distributors on the retrospective basis i there is any priceluctuations thus a sae play or the distributors and the retailers too $


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DISRTIBUTIIONS OF PRODUCT

*istribution o the product is the main objectives o the mar#eting process$ It is theprocess o the transerring the product rom the producers to the distributions andultimately to the consumers through retailers $ %he decisions regarding the channels othe distribution is very important decisions s rom the companys point o vie! becausethe selection o channel aects considerable the other mar#eting decisions $

B2&)$ I&'* 0( '1%$' %0r$$ %*$r '*(%r*52%*& :-

PLANT , DISTRIBUTORS , RETAILERS , CONSUMERS

ll the products produced at Bunge India ,Rajpura are sold in the area o Punjab2aryana, Rajasthan , 3Q , 2imachal Pradesh ,/handigarh through :H? depots and

;; stations $ (umber o *ealers engaged in distributions o Bunge India products are

around G? $


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CHAPTER - III


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INDRODUCTION

P46$, D*(%r*52%*&, C0&&$4, r I&%$r$'*r+.

channel o distribution comprises a set o institutions !hich perorm all o the

activities utili5ed to move a product and its title rom production to consumption$

Buc#lin 8 %heoryo *istribution /hannel Structure GG=

nother element o (eil 2$Bordens Mar#eting Mi& is P46$$ Place is also

#no!n as channel, distribution, or intermediary$ It is the mechanism through !hich

goods andJor services are moved rom the manuacturerJ service provider to the user or

consumer$

n interrelated arrangement o people, storage acilities and transportation systems thatmoves goods and services rom producers to consumers$ distribution net!or# is thesystem a company uses to get products rom the manuacturer to the retailer$ ast andreliable distribution net!or# is essential to a successul business because customersmust be able to get products and services !hen they !ant them$

T0$r$ r$ (*7 5(*6 860&&$48 '$6*(*&(:

*o !e use direct or indirect channels


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(umber o intermediaries at each level


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%hey brea# do!n bul# into smaller pac#ages or resale by a retailer$

%hey buy rom producers and resell to retailers$ %hey ta#e o!nership or title to

goods !hereas agents do not


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%he retailer !ill hold several other brands and products$ consumer !ill e&pect

to be e&posed to many products$

Retailers !ill oten oer credit to the customer e$g$ electrical !holesalers, or

travel agents$

Products and services are promoted and merchandised by the retailer$

%he retailer !ill give the inal selling price to the product$

Retailers oten have a strong brand themselves e$g$ Ross and all8Mart in the

'S, and lisuper, Modelo, and umbo in Portugal$

>. C0&&$4 I&%$r$'*r*$( - I&%$r&$%

%he Internet has a geographically disperse mar#et$

%he main beneit o the Internet is that niche products reach a !ider audience

e$g$ Scottish Salmon direct rom an Inverness ishery$

%here are lo! barriers lo! barriers to entry as set up costs are lo!$

'se e8commerce technology


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(ormally goods and services pass through several hands beore they come to the handso theconsumer or use$ But in some cases producers sell goods and services directly to theconsumers

!ithout involving any middlemen in bet!een them, !hich can be called as directchannel$ Sothere are t!o types o channels, one direct channel and the other, indirect channel$-rom the above diagram it can be ound that there is just one direct channel i$e$ rom

producer tothe consumer$ %here are many indirect channels li#e


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%his is the common channel or the distribution o goods to ultimate consumers$ Sellinggoodsthrough !holesaler may be suitable in case o ood grains, spices, utensils, etc$ andmostly oitems, !hich are smaller in si5e$

'nder this channel, the producers sell to one or more retailers !ho in turn sell to theultimateconsumers$ %his channel is used under the ollo!ing conditions .


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Types of Marketing Channels[

%here are our main types o mar#eting channels

Pr'26$r --@ C2(%$r

%he producer sells the goods or provides the service directly to the consumer !ith no

involvement !ith a middle man such as an intermediary, a!holesaler, a retailer, an

agent, or a reseller$ %he consumer goes directly to the producer to buy the product

!ithout going through any other channel$ %his type o mar#eting is most beneicial to

armers !ho can set the prices o their products$

Pr'26$r --@ R$%*4$r --@ C&(2$r

Retailers, li#ealmartand %arget, buy the product rom the manuacturer and sell

them directly to the consumer$ %his channel !or#s best or manuacturers that produce

shopping goods li#e,clothes,shoes,urniture, table!are, and toys$;TSince consumers

need more time !ith these items beore they decide to purchase them, it is in the best

interest o the manuacturer to sell them to another user beore it gets into the hand o

the consumers$ It is also a good strategy to use another dealer to get the product to the

end8user i the producer needs to get to the mar#et more 9uic#ly GTby using an

established net!or# that already hasbrand loyalty$

Pr'26$r --@ W04$(4$rD*(%r*52%r --@ C2(%$r

holesalers, li#e /ostco, buy the products rom the manuacture and sell them to theconsumer$ In this channel, consumers can buy products directly rom the !holesaler

inbul#$ Bybuying the items in bul#rom the !holesaler the prices o the product are

reduced$ %his is because the !holesaler ta#es a!ay e&tra costs, such as service costs or

sales orce costs, that customers usually pay !hen buying rom retailK ma#ing the price

much cheaper or the consumer$;T2o!ever, the !holesaler does not al!ays sell

directly to the consumer$ Sometimes the !holesaler !ill go through a retailer beore the

product gets into the hands o the consumer$ Each dealer


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!holesaler, and the retailer= !ill be loo#ing to ma#e a decentproit margin rom the

product$ So each time the buyer purchases the merchandise rom another source, the

price o the product has to increase, in order to ma&imi5e the proiteach person !ill

receive$ %his raises the price o the product or the end8user$

Pr'26$r --@ A)$&%Br#$r --@ W04$(4$r r R$%*4$r --@ C2(%$r

%his distribution channel involves more than one intermediary beore the product gets

into the hands o the consumer$ %his middleman, #no!n as the agent, assists !ith the

negotiation bet!een the manuacturer and the seller$ gents come into play !hen the

producers need to get their product into the mar#et as 9uic#ly as possible$ %his happens

mostly !hen the item isperishableand has to get to the mar#et resh beore it starts to

rot$;Tt times the agent !ill directly go to the retailer !ith the goods, or ta#e an

alternate route through the !holesaler !ho !ill go to a retailer and then inally to the

consumer$
https://en.wikipedia.org/wiki/Profit_marginhttps://en.wikipedia.org/wiki/Profit_maximizationhttps://en.wikipedia.org/wiki/Perishablehttps://en.wikipedia.org/wiki/Marketing_channel#cite_note-Chron-5https://en.wikipedia.org/wiki/Marketing_channel#cite_note-Chron-5https://en.wikipedia.org/wiki/Profit_marginhttps://en.wikipedia.org/wiki/Profit_maximizationhttps://en.wikipedia.org/wiki/Perishablehttps://en.wikipedia.org/wiki/Marketing_channel#cite_note-Chron-5


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W0% r$ (% *&) 6&(2$r )'(

lso #no!n as the /onsumer Pac#aged )oods or /P) Industry, this multi8milliondollar sector is made up o a huge range o amous brand names . the #ind that !e use

every single day$ %hese ast moving consumer goods are the essential items !epurchase !hen !e go shopping and use in our everyday lives$ %heyre the householditems you pic# up !hen youre buying groceries or visit your local chemist or

pharmacy$ -M/) goods are reerred to as ast moving, 9uite simply, because theyrethe 9uic#est items to leave the supermar#et shelves$ %hey also tend to be the highvolume, lo! cost items$

/leaning and laundry products, over the counter medicines, personal care items andood stus ma#e up a large bul# o the goods in the -M/) arena, but it doesnt endthere$ Paper products, pharmaceuticals, consumer electronics, plastic goods, printingand stationery, alcoholic drin#s, tobacco and cigarettes can all be considered ast

moving consumer goods too$

%he top -M/) companies are characterised by their ability to produce the items thatare in highest demand by consumers and, at the same time, develop loyalty and trustto!ards their brands$

%he top -M/) companies are characterised by their ability to produce the items thatare in highest demand by consumers and, at the same time, develop loyalty and trustto!ards their brands$

Some o the leading -M/) companies in the !orld include

/olgate8Palmolive

-amous brands /olgate toothpasteK Palmolive soap and cleaning productsK 4

cleaning products$

/oca8/ola

-amous brands /oca8/olaK *iet /o#eK -antaK Sprite

)eneral Mills

-amous brands PillsburyK )reen )iantK 1oplait dairy products

2$ $ 2ein5

-amous brands 2ein5 %omato QetchupK Lea 3 PerrinsK 2P Sauce

2en#el

-amous brands PrittK SellotapeK Sch!ar5#op hair products

ohnson 3 ohnson

-amous brands ohnsons BabyK (eutrogenaK cuvueK Listerine oral care

Qimberly8/lar#

-amous brands Qleene& paper productsK Qote& eminine careK 2uggies baby

products
http://www.colgate.com/app/Colgate/US/HomePage.cvsphttp://www.coca-cola.com/index.jsphttp://www.generalmills.com/default.aspxhttp://www.heinz.com/http://www.henkel.com/index.htmhttp://www.jnj.com/connect/http://www.kimberly-clark.com/http://www.colgate.com/app/Colgate/US/HomePage.cvsphttp://www.coca-cola.com/index.jsphttp://www.generalmills.com/default.aspxhttp://www.heinz.com/http://www.henkel.com/index.htmhttp://www.jnj.com/connect/http://www.kimberly-clark.com/


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Qrat

-amous brands Qrat, Mil#aK PhiladelphiaK %oblerone

L0rUal

-amous brands L0real Paris, )arnierK Maybelline (e! 1or#K BiothermK Qiehls

(estlU-amous brands (estel Pure Lie, (escaeK (es9ui#K Qit QatK Purina

Procter 3 )amble

-amous brands riel, )illetteK PampersK 0layK *uracellK Pantene

RB


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M$60&*6( D*(%r*52%*& C0&&$4( S$6%r

%he supply chain o products in the -M/) mar#et in India is one o the longest supplychains an industry could really have$ %here are as many as ; levels o intermediariesinvolved in the entire supply chain through !hich a product passes beore reaching theend consumer $hat has been observed is that even though these -M/) companies are

big multinationals and Indian but ace a major challenge o ma#ing their productsavailable in the mar#et in the right 9uantities and in the right time$ %his is simply

because these companies don@t really have a !ide net!or# o sales agents andother orce !hich is re9uired and is ideal or catering their products to he mar#ets$ %hisaspect is ta#en over by distributors, !holesalers and retailer !hose margins on these

products actually double the price o these products !hen a inal consumer buys it$ %hemargins #ept by these intermediaries range rom DA to ;A$ %he products in thisindustry are transported rom manuacturing units via c 3 agencies or !arehouse todistributors !ho urther sell the same to !holesalers or stoc#iest !ho inally sell it tothe retailers in the mar#et$ %hese products are transported either via road!aysor rail!ays !ithin the domestic mar#ets and normally don@t ta#e more than a !ee# toreach the retailers$ -M/) products are normally a high volume ball game and

products have to essentially be available in the mar#et at all given points o time and atall given points o purchase and thereore the distribution activities are highly volatileand dynamic$ %he supply o products ta#es place virtually on a daily basis in i&ed9uotas or other!ise, to retailers as per their re9uisitions and the anticipation o demandand the perormance o products in the recent past$ ll such criteria are ta#en into

consideration beore the 9uantumo products being dispatched to the ne&t level o intermediary$ Since it@s a volume game,manuacturers ma#e all possible eorts to boost sales and promote their distributorsto earn more and more orders rom the retailers and !holesalers$ close chec#is maintained on the lo! o the products on a daily, !ee#ly, ortnightly and monthly

basis to determine the trend in the business and lo! o products and consumption$ %hisactivity also helps to ind out dra!bac#s o the distribution system, i any, and rectiythem !ithin time


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ANALYSIS EVALUATION OF DISTRIBUTIONCHANNELS IN

FMCG SECTOR:

%he supply chain o products in the -M/) mar#et in India is one o the longest supplychains an industry could really have$ %here are as many as ; levels o intermediariesinvolved in the entire supply chain through !hich a product passes beore reaching theend consumer$ hat has been observed is that even though these -M/) companies are

big multinationals and Indian but ace a major challenge o ma#ing their productsavailable in the mar#et in the right 9uantities and in the right time$ %his is simply

because these companies don@t really have a !ide net!or# o sales agents and otherorce !hich is re9uired and is ideal or catering their products to the mar#ets$ %hisaspect is ta#en over by distributors, !holesalers and retailer !hose margins on these

products actually double the price o these products !hen a inal consumer buys it$ %heproducts in this industry are transported rom manuacturing units via c3 agencies or!arehouse to distributors !ho urther sell the same to !holesalers or stoc#iest!ho inally sell it to the retailers in the mar#et$ %hese products are transported eithervia road!ays or rail!ays !ithin the domestic mar#ets and normally don@t ta#e morethan a !ee# to reach the retailers$ -M/) products are normally a high volume and

products have to essentially be available in the mar#et at all given points o time and atall given points o purchase and thereore the distribution activities are highly volatileand dynamic$ %he supply o products ta#es place virtually on a daily basis in i&ed9uotas or other!ise, to retailers as per their re9uisitions and the e&pectation o demandand the perormance o products in the recent past$ ll such criteria are ta#en into

consideration beore the 9uantum o products being dispatched to the ne&t level ointermediary$ Since it@s a volume game, manuacturers ma#e all possible eortsto boost sales and promote their distributors to earn more and more orders rom theretailers and !holesalers$ %his activity also helps in inding out dra!bac#s o thedistribution system$ Rediscovering o distribution means re8designing o distribution

process in a better !ay$ s the mar#et gro!s need or eiciency and viability increases$)iven an e&isting distribution process o a product, the need to rediscover it in e8tailing!ay !ould lead to man (eed o e8tailing hat !ould happen to current distribution

process $Beneit among e&isting distribution or e8tailing %he need or e8tailing isto provide better entrUe to customer along !ith the instant order placement andconvenience or the same$ %raditional distribution process can even e&ist aterrediscovering$ as an alternative both the distribution model !ould e&ist in the productmar#et adding to higher sale by company


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CHAPTER - IVCHAPTER - IV


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OBJECTIVES OF THE STUDY

%o ind out the distribution channels o distribution net!or# o Bunge India

Pvt Ltd $$

-ind out the eiciency level o distribution net!or#

%o ind out the mar#eting situations o Bunge India Pvt Ltd $

%o ind out the present problems aced by dealers$

%o ind out the any ne! scheme re9uired by the dealers$

%o give valuable suggestions to the company or increase the sales volume


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CHAPTER- V


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RESEARH METHODOLOGY

Pilot study tells about the completeness, accuracy convenience o the

sampling rom !hich it is proposed to select the sample$

RESEARCH DESIGN:

0n analysis the condition the researcher ound that descriptive research

design is appropriate or the research or the study$

DESCRIPTIVE RESEARCH:

*escriptive research includes surveys and act8inding en9uiries o

dierent #inds$ %he major purpose o descriptive research is description o the

state o aairs as it e&ists at present$ In social science and business research !e

9uite oten use the term E& post acto research or descriptive research studies$

%he main characteristic o this method is that the researcher has no control over

the variablesK he can only report !hat has happening$

Most e& post acto research projects are used or descriptive studies in

!hich the researcher see#s to measure such items as, or e&ample, re9uency o

shopping, preerences o people, or similar data$ E& post acto studies also

include attempts by researchers to discover causes even !hen they cannot

control the variables$ %he methods o research utili5ed in descriptive research are

survey methods o all #inds, including comparative and correlation methods$ In

analytical research, on the other hand, the researcher has to use acts orinormation already available, and analy5e these to ma#e a critical evaluation o

the material$

$


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SAMPLING TECHNI3UES:

%he researchers select the judgment sampling model or his researcher

!or#$

SAMPLE SIE:

%he researcher selected the :?? respondents or the present study in

RP'R


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CHAPTER - VI


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ANALYSIS OF RETAILER RESPONSES

:$ hich soybean oil has ma&imum sale in dierent 9uantity pac#s

: L%R ; L%R :; L%R

s Sho!n In %he *iagram : Ltr Pac#aging Is %he Most Saleable nd It 2olds

C: A Share 0 %he %otal

D$ Ran# the ollo!ing attributes in soybean oil bet!een :8; according to

customer importanceGRADING ; < = >

%S%E H :G DH H ;O'LI%1 H :F D? ; C

P/Q)I() G :G :F ; ;BR(* IM)E D: F F G


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PRI/E : D : G C?

H$ hat inluences customers to buy brand

; < = >

dvertisementttractive pac#agingRetailer

Shop displayPrice


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*iscount2ealth conscious


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C$ hat are customers eedbac# regarding soybean oil


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;$ re you satisied !ith incentives rom the oil company

1ES (0


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G$ re you satisied !ith the services o the brand you are selling 1ES (0


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7. I no then !hat are the suggestions you !ill give to the company


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CHAPTER -VII


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CHAPTER - VICHAPTER - VI

CONCLUSIONS SUGGESTIONCONCLUSIONS SUGGESTION

Bunge India Pvt Ltd should concentrate in credit acility o the dealers$

-i&ed the standard price o the product $

Bunge India should concentrate on sales man visit or !ide mar#eting$

Bunge India should concentrate to attract the dealers$

Bunge India should improve their sales promotional eorts$

Bunge India does a mar#et research and gets eed bac#$

Bunge India should concentrate to give incentives to the sub8dealers also$

Bunge India should concentrate to ulill the service or dealers re9uired$


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LIMITATION OF THE STUDY

0ne o the important o the study !as lac# o time$ %hough the

respondent to the study !as vast due to the time constraints the sample si5e !as

limited$

%he researcher has diiculty !ith most o the respondents !ho !as not

!illing to cooperate !ith the study, as they !ere very busy !ith their !or#$

%he research had also diiculty in getting some inormation, !hich the

respondents !ere not interested to give$

%he researcher had diiculty !ith the respondents because they did not

ill up the 9uestionnaire in proper time$

nother limitation o the study !as conined !ith not only retailers but

also consumers or survey o this study$


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CHAPTER- VIII


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BIBLIOGRAPHY

BOOKS

KOTLER PHILLIP, Mar#eting ManagementGREEN AND TULI , MRQE%I() RESER/2

WWW.BUNGEINDIA.COM
http://www.bungeindia.com/http://www.bungeindia.com/


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CHAPTER - IX


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ANNEXURE

A STUDY ON DISTRIBUTION CHANNELS SURVEY WITH

SPECIAL REFERENCE TO BUNGE INDIA PVT LTD IN

RAJPURA

3UESTIONNAIRE

:$ (ME

D$ )E

H$ E*'/%I0( O'LI-I/%I0(

C$ **RESS

G$ 2I/2 /0MP(1 )E%S 2I)2 SLES +0L'ME I( E*IBLE 0IL

$ B'()E < =B$ 2I(*'S%( '(ILE+ER < =/$ )I((I < =*$ )0Q'L < =

$ I( 10'R P0I(% 0- +IE 20 IS %2E M0S% +L'BLE S'PPLIERS

$ B'()E < =B$ 2I(*'S%( '(ILE+ER < =/$ )I((I < =*$ )0Q'L

F$ 2% IS 10'R 0PI(I0( B0'% %2E O'LI%1 0- B'()E I(*I

$ E4/ELLE(% < =

B$ +ER1 )00* < =/$ )00* < =


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*$ +ER)E < =E$ P00R < =

>$ QI(*L1 )I+E 10'R S'))ES%I0( REL%E* %0 %2E PRI/E 0- B'()E

I(*I

$ 2I)2L1 S%IS-IE* < =B$ S%IS-IE* < =/$ +ER)E < =*$ *ISS%IS-IE* < =E$ 2I)2L1 *ISS%IS-IE* < =

:?$ 2I/2 IS %2E -S% M0+I() BR(* I( 10'R %0(

$ B'()E < =B$ 2I(*'S%( '(ILE+ER < =/$ )I((I < =*$ )0Q'L < =

::$ PLESE R%E %2E 0R*ER (* REPL/EME(% 0- B'()E I(*I


:D$ PLESE R%E %2E +ILBILI%1 0- B'()E I(*I


:H$ RE 10' S%IS-IE* I%2 %2E MR)I(S 0--ERE* B1 B'()E I(*I


:C$ *0 10' S%IS-IE* %0 %QE %2E B'()E I(*I *ELERS2IP


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$ 1ES < =B$ (0 < =

:;$ PLESE ME(%I0( *+ER%ISEME(% 0--ERE* B1 B'()E I(*I

$ %00 2I)2 < =B$ 2I)2 < =/$ M0*ER%E < =*$ L0 < =E$ %00 L0 < =

:G$ PLESE ME(%I0( SLES PR0M0%I0(L E--0R%S 0- %2E B'()EI(*I

$ E4/ELLE(% < =

B$ +ER1 )00* < =/$ )00* < =*$ +ER)E < =E$ P00R < =

:>$ B'()E I(*I 0--ERE* (1 -I((/IL S/2EMES

$ 1ES < =B$ (0 < =

D?$ 2I/2 /0MP(1 )I+ES M0RE IMP0R%(/E %0 MRQE%I()RESER/2

$ B'()E < =B$ 2I(*'S%( '(ILE+ER < =/$ )I((I < =

*$ )0Q'L

D:$ PLESE ME(%I0( *ELE+ER1 PERI0* 0- %2E B'()E I(*I

$ :8H *1S < =B$ H8; *1S < =/$ ;8:? *1S < =*$ :?8:H *1S < =E$ :H8:; *1S < =

DD$ )I+E 10'R +L'BLE S'))ES%I0( %0 %2E 0+ERLL /EME(%I(*'S%R1


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32$(%*&&*r$ r C&(2$r(

:$ *o you use soybean oil 1ES (0

D$ Ran# the ollo!ing attributes in soybean oil bet!een :8; acording to customerimportanceGRADING ; < = >

%S%EO'LI%1P/Q)I()BR(* IM)EPRI/E

H$ hat inluences you to buy brand; < = >

dvertisementttractive pac#agingRetailerShop displayPrice*iscount2ealth conscious

C$ I particular brand is not available !ith retailer then you !ill $$

do not buygo to another retailer

try another brand

;$ hat according to you a suitable price or : L%R o good 9uality oilbelo! H?bet!een H? 8C?

bet!een C?8;?more than ;?

G$ i your brand id e! Rs e&pensive than it ,,!ill you go or it 1ES (0

$ sale promotion scheme li#e Rs :? o ,D;? gm e&tra or a ree product ,!ould

it aect your purchase decision1ES (0

F$ hat si5e o pac#aging ,do you normally buy

: L%R ; L%R :; L%R


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>$ re you happy !ith the #ind o soybean oil brand available in India 1ES (0

I no then !hy not

projectdistributionchannels okkk

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