A

COMPREHENSIVE PROJECT REPORT

ON
“To Study Effectiveness of Distribution for P & G Brand in
Small Channel of Sandesh Distributor Pvt. Ltd., South
Gujarat”
Submitted to
S.R. LUTHRA INSTITUTE OF MANAGEMENT
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
In
Gujarat Technological University
UNDER THE GUIDANCE OF

Faculty Guide: Company Guide

Ms. Rupal Khambhati Mr. Rajesh Bhutwala
(Asst. Professor) HR manager
(Sandesh Distributor Pvt. Ltd.)

Submitted by
Mr. RISHI .M. PATEL [Batch No. 2015-17, Enrollment No. 158050592089]
Ms. RICHA .M. BRAHMBHATT
[Batch No. 2015-17, Enrollment No.158050592015]

MBA SEMESTER III&IV

S.R. LUTHRA INSTITUTE OF MANAGEMENT – 805
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmadabad
MAY, 2017

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 Student’s Declaration

We, Ms. RICHA BRAHMBHATT & Mr. RISHI PATEL, hereby declare that the
report for comprehensive Project entitled “To Study Effectiveness of
Distribution for P & G Brand in Small Channel of Sandesh Distributor Pvt. Ltd.,
South Gujarat” is a result of our own work and our indebtedness to other work
publications, references, if any, have been duly acknowledged.

Place: Surat

Date: _____________

__________________
(Richa Brahmbhatt)

__________________
(Rishi Patel)

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 Institute’s Certificate

Certified that this Comprehensive Project Report Titled “To Study

Effectiveness of Distribution for P & G Brand in Small Channel of Sandesh
Distributor Pvt. Ltd., South Gujarat” is the bonafide work of Ms. Richa
Brahmbhatt (Enrollment No.158050592015) and Mr. Rishi Patel (Enrollment
No.158050592089), who has carried out the research under my supervision. I
also certify further, that to the best of my knowledge the work reported herein
does not form part of any other project report or dissertation on the basis of
which a degree or award was conferred on an earlier occasion on this or any
other candidate.

Place: Surat
Date: ________________

___________________
(Rupal Khambhati)
Assistant Professor

___________________
(J. M. Kapadia)
Director

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 PREFACE

As a part of the partial fulfillment of the MBA program at S.R. Luthra Institute
of Management, comprehensive project will be undertaken with Sandesh PVT
LTD on report of “To Study Effectiveness of Distribution for P & G Brand in
Small Channel of Sandesh Distributor Pvt. Ltd., South Gujarat” during the
suggested duration for the period of one year, to avail the necessary
information.

The basic purpose behind doing this project is to get knowledge and to get the
practical experience of working in market and it is a link between theory and
actual management of marketing at Sandesh PVT LTD.

The project report starts with the basic concepts of FMCG market, meaning of
FMCG market and covers the general information of FMCG market and P&G
brand and also about Sandesh PVT LTD and in this report the signs of
improvement are visible in some indicators.

The information presented in this project report is obtained from sources like
Sandesh LTD personnel, websites, other websites, questionnaire, past report
and other literature.

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 ACKNOWLEDGEMENT

We would like to extend our sincere thanks to Gujarat Technological

University, Ahmadabad for providing us an opportunity to do comprehensive
project.

We are highly thankful to Dr. J.M. Kapadia, Director, S.R. Luthra Institute of
Management for providing such a platform to work as an intern in an
organization to have better exposure to the industry.

We are thankful to Mr. Harshesh Patel, Asst. Prof., SRLIM and Mrs. Rupal
Khambhati, Asst. Prof., SRLIM for the guidance and constant supervision as
well as for providing necessary information regarding the project and also for
their support in completing the project.

We would like to express our gratitude towards our parents & members of
Sandesh Distributor Pvt. Ltd. and our respected guide Mr. Rajesh Bhutwala,
HR Manager, for kind co-operation and encouragement.

We would like to express our special gratitude and thanks to industry persons
for giving us such attention and time.

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 EXECUTIVE SUMMARY

FMCG is acronym for a Fast Moving Consumer Goods, which refer to things
that they buy from local supermarkets on daily basis, the things that have high
turnover and are relatively cheaper. Products which have a quick turnover,
and relatively low cost are known as Fast Moving Consumer Goods
(FMCG).some well-known companies of FMCG are Nestlé, Reckitt Benckiser,
Procter and gamble, coca cola, Carlsberg, Pepsi, mars etc. A Distribution
Channel is a set of interdependent organizations (intermediaries) involved in
the process of making a product or service available for use or consumption
by the consumer or business user. In Sandesh distributor PVT LTD there are
five types of distribution channel, large distribution channel, medium
distribution channel, small distribution channel, wholesalers, and Mini market.

Fast Moving Consumer Goods popularly known FMCG is as the name

suggests is the most demanded products in the market. It includes everything
from food items like flour, biscuits, ice creams, etc. to body products soaps,
face creams to cigarettes to beverages, etc. consumers need these things in
their everyday life so they invests. The Fast Moving Consumer Goods
(FMCG) Industry in India include segments like cosmetics, toiletries,
glassware, batteries, bulbs, pharmaceuticals, packaged food products, white
goods, house care products, plastic goods, consumer non-durables, etc. The
FMCG Sector in India is the fourth largest sector in the Indian economy.
FMCG Market in Gujarat is well developed. Gujarat is one of the most
industrially developed states in India. Most of the major FMCG companies of
India operate in Gujarat.

Sandesh Distributor PVT LTD is Distributor of South Gujarat for P&G-Gillette

India since December 2005. They have 17 branches all over South Gujarat
and more than 600+ employees working with them. Sandesh Distributor PVT
LTD distributes all P&G-Gillette products in South Gujarat. SDPL major
brands are Head & Shoulders, Pantene, Pampers, Whisper, Tide, Ariel, Tube
Shave Gel, Ambipure, Olay, Viks, Vaporub, Action 500, Mach-3, Turbo Mach-

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3, Fusion etc. there are total five departments which are, finance department,
IT department, HR department, sales department, operation department.

Problem statement of study is to study the effectiveness of small distribution

channel of P &G brand in Sandesh distributor PVT LTD. Productivity is critical
to the success of any business firm that wants to gain and maintain market
share. The organization is in need of an appropriate measure of customer
satisfaction that will lead to productivity from its customers. With the help of
distribution channel the marketer reach the intended final user of their
product.

In research methodology the objective of study is to identify the factors

affecting the purchase decision towards P & G brand from Sandesh Pvt. Ltd.,
to study effectiveness of small distribution channel, to study satisfaction level
of customer towards small distribution channel. This research conducted is a
descriptive research. This is descriptive in nature because the study is
focused on fact finding investigation in a structured form and is based on
primary data. Primary data has been used in the form of a questionnaire in
order to collect data.

From the analysis it can be found that 124 respondent are neutral with the
Regular visit of same sales person, 113 respondent are neutral with the
Visiting timings of the sales person, 164 respondent are satisfied with Product
is delivered on convenient time.

It can be concluded that 151 respondent are dissatisfied with flexible damage
& credit policy provided by SDPL, 126 respondent are neither satisfied nor
dissatisfied with easy communicate with salesperson of SDPL., 126
respondent are neutral about Sandesh Distributor Pvt. Ltd offers special
discount for P&G products, 186 respondent are neither satisfied nor
dissatisfied about Dealing experience with Sandesh Distributor Pvt. Ltd. is
good.

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The KMO and Bartlett’s test table displays the results for interpreting the
adequacy of data for factor analysis. (KMO) is a measure of sampling
adequacy for our sample to be adequate for understanding factor analysis. In
this test the value of KMO test is 0.789 and the p-value of Bartlett’s test is
637.803 factor analysis can be undertaking with this data.

The cumulative variance for both the unroatated and rotated components is
63.340 %.for unroatated component the first component explain the maximum
variance, followed by declining variance of the second and third component
,where as in rotated components, the variance is uniformly distributed.

In factor analysis there are 4 components. They are the variable constituting
policy, communication, availability and product delivery.

In the policies Constituting Regular visit of same sales person is important,

visiting timings of the sales person are convenient, Sandesh Distributor Pvt.
Ltd provides flexible damage & credit policy, and Sandesh Distributor Pvt. Ltd
offers special discount for P&G products.

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 TABLE OF CONTENTS
o Company’s Certificate
o Students’ Declaration
o Institute’s Certificate
o Preface
o Acknowledgement
o Executive Summary
Sr. Particulars Page
No. No.
1. Introduction 1
2. Industry Profile – Name of the Industry 9
a. Global 10
b. National 12
c. State 17
d. PESTEL 19
e. Current trends/ 21
f. Major Players& offerings 23
3. Company Profile – Name of the Company 24
a. Company Profile 24
b. Organogram 26
c. Divisions/ Departments 27
d. SWOT 30
e. Market Position 31
4. Review of Literature 33
5. Research Methodology 49
a. Problem Statement 49
b. Research Objective 49
c. Research Design 49
i. Type of Design 49
ii. Sampling 50
iii. Data Collection 50
iv. Tools for Analysis 50

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 v. Limitations of the Study 50
6. Data Analysis & Interpretation 51
7 Findings 69

8 Conclusion 71

Bibliography 72

Annexure 75

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 LIST OF TABLES
Sr. Table Page
Particulars
No. No. No.
1 Major players and offering 2.1 18
2 Company Details 3.1 25
3 Review of literature 4.1 45

4 annual businesses 6.1 51

5 Area 6.2 52

6 statements of the study 6.3 53

7 number of visits of distributor 6.4 56

8 expectation of visit of outlet 6.5 57

9 monthly sales of p&g 6.6 58

10 overall satisfactions 6.7 59

how likely continue purchasing product from
11 SDPL 6.8 60

12 KMO and Bartlett's Test 6.9 61

13 Component Matrix 6.10 62
14 Communalities 6.11 63

15 Total Variance Explained 6.12 64

16 Component Transformation Matrix 6.13 64

17 Rotated Component Matrix 6.14 65

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 LIST OF FIGURES
Figure Page
Sr. No. Particulars
No. No.
1 FMCG companies in India 2.1 10
2 Rank of FMCG industry. 2.2 19
3 Annual Growth Report 2.3 22
4 Shares in Indian retail sectors 2.4 22
5 ORGANOGRAM 3.1 26
6 annual business 6.1 51

7 area 6.2 52

8 statements 6.3 53

9 number of visits of distributor to retailer 6.4 56

10 expectation of visit of outlet 6.5 57

11 monthly sales of p & g 6.6 58

12 overall satisfactions 6.7 59

13 how likely continue purchasing product from SDPL 6.8 60

14 screen plot 6.9 61

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 CHAPTER: 1
INTRODUCTION

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  What is FMCG?
FMCG is acronym for a Fast Moving Consumer Goods, which refer to things
that we buy from local supermarkets on daily basis, the things that have high
turnover and are relatively cheaper. Products which have a quick turnover,
and relatively low cost are known as Fast Moving Consumer Goods (FMCG).
FMCG products are those that get replaced within a year. Examples of FMCG
generally include a wide range of frequently purchased consumer products
such as toiletries, soap, cosmetics, tooth cleaning products, shaving products
and detergents, as well as other non-durables such as glassware, bulbs,
batteries, paper products, and plastic goods. FMCG may also include
pharmaceuticals, consumer electronics, packaged food products, soft drinks,
tissue paper, and chocolate bars.
A subset of FMCGs is Fast Moving Consumer Electronics which include
innovative electronic products such as mobile phones, MP3 players, digital
cameras, GPS Systems and Laptops. These are replaced more frequently
than other electronic products. White goods in FMCG refer to household
electronic items such as Refrigerators, T.Vs, Music Systems, etc.
These types of goods are required frequently by consumers and so a large
part of the monthly salary or income will be spent on buying all the goods
listed on the consumer's shopping list. New players keep joining the FMCG
circles but find the going tough unless they have a well planned strategy along
with large cash reserves for their product promotion. A particular FMCG
company might be a strong urban market leader, but will still find it tough to
enter the rural markets or a new Indian state or area.
Although FMCG companies generate a large volume of sales and money,
they are always under pressure as they keep facing a lot of competition from
their fellow competitors. Due to this, the FMCG companies try to do their level
best in maintaining a fine balance in their profits and the product price. Thus
they keep facing new challenges on their margins month after month.
One of the key factors for an FMCG company to do well is a proper
distribution network. If a distribution network of a particular FMCG company is
well oiled, then that particular FMCG Company will definitely find the going
much easier in the market. But companies have to allot a large chunk of their
finances in developing and fine tuning their distribution networks.
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The promotion of a product of an FMCG company too is considered very
crucial for its success. The market has many players. Every FMCG company
has to fight for its space and audience in the Indian market. Thus, when a
multinational company enters the Indian market, it creates an even bigger
challenge to the existing players on the FMCG scene. If the promotion is done
well, then the manufacturing of the product can even be outsourced. This can
save valuable finance for a company. This in turn will help the company to
utilize their energies on other aspects of their product. Some of the top
players on the FMCG scene in India are Hindustan Unilever Ltd., ITC (Indian
Tobacco Company), Nestle India and Dabur India.
So, we can say that FMCG are the products which are:
 Sold quickly at relatively low cost
 Sold in large quantities
 Have low absolute profit but high cumulative profit
FMCG industry provides a wide range of consumables and accordingly the
amount of money circulated against FMCG products is also very high. The
competition among FMCG manufacturers is also growing and as a result of
this, investment in FMCG industry is also increasing, specifically in India,
where FMCG industry is regarded as the fourth largest sector with total
market size of US$13.1 billion. FMCG industry is regarded as the largest
sector in New Zealand which accounts for 5% of Gross Domestic Product
(GDP).
Some of the merits of FMCG industry, which made this industry as a potential
One, are low operational cost, strong distribution networks, presence of
renowned FMCG companies. Population growth is another factor which is
responsible behind the success of this industry.

 Some of the well known FMCG companies are:

 Nestlé
 Reckitt Benckiser
 Unilever
 Procter & Gamble
 Coca-Cola
 Carlsberg
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  Pepsi
 Mars
FMCG industry creates a wide range of job opportunities. This industry is a
stable, diverse, challenging and high profile industry providing a wide range of
job categories like sales, supply chain, finance, marketing, operations,
purchasing, human resources, product development, and general
management.

 DISTRIBUTION CHANNEL OF SDPL

A Distribution Channel is a set of interdependent organizations
(intermediaries) involved in the process of making a product or service
available for use or consumption by the consumer or business user. Channel
decisions are among the most important decisions that management faces
and will directly affect every other marketing decision.
In Sandesh PVT LTD who is the distributor of p&g brand, there are total five
types of distribution channel which are allocated by p&g.
1. Large distribution channel
2. Medium distribution channel
3. Small distribution channel
4. Wholesalers
5. Mini market
1. Large distribution channel
In large distribution channel is a channel in which large outlets, such as the
shopping centers, belonging to a few companies, which move large volumes
of goods from number of large product. In this channel that stores are
included which are buying more than 10000 Rs products.
2. Medium distribution channel
Which are buying less than 4000 Rs outlet or product is come in medium
distribution channel. This channel is buying medium quantity of outlet.
3. Small distribution channel
Small distribution channel define as the small stores and kariyana shop which
are buying less than 1000 Rs goods from the sales person. In every visit this
shops are buying average 1000Rs goods. In this small channel there is also
three types of categories like,
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  Small traditional A and small traditional B (ST A-B)
 Small pharmacy A and small pharmacy B(SP A-B)
 Small beauty A and small beauty B(SB A-B)
In ST-A that stores are included which buying average 400 rs goods in every
visit and in ST-B it includes 300 rs goods in every visit. In small channel every
12 days visiting are made. There is no credit system in small distribution
channel.
4. Wholesalers:
Wholesalers are which shopkeepers which are buying is large quantity of
units. Wholesalers are buying in large quantity and they are selling to small
stores and retailers.
5. Mini market:
Mini market is also like stores. Mini markets are covered weekly.

 Functions of Distribution Channel

 All Use Up Scarce Resources
 All May Often Be Performed Better Through Specialization
 All Can Often Be Shifted Among Channel Members

 A different channel of distribution is given below:

1. Manufacturer Customer:
This is also known as direct selling because no middlemen are involved. A
producer may sell directly through his own retail stores, for example, Bata.
This is the simplest and the shortest channel. It is fast and economical. Small
producers and producers of perishable commodities also sell directly to the
local consumers. Big firms adopt direct selling in order to cut distribution cost
and because they have sufficient facilities to sell directly to the consumers.
The producer or the entrepreneur himself performs all the marketing activities.
2. Manufacturer Retailer Customer:
This is one stage distribution channel having one middleman, i.e., retailer. In
this channel, the producer sells to big retailers like departmental stores and
chain stores who in turn sell to customer. This channel is very popular in the
distribution of consumer durables such as refrigerators, T V sets, washing
machines, typewriters, etc. This channel of distribution is very popular these
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days because of emergence of departmental stores, super markets and other
big retail stores. The retailers purchase in large quantities from the producer
and perform certain marketing activities in order to sell the product to the
ultimate consumers.
3. Manufacturer Wholesaler Retailer Customer:
This is the traditional channel of distribution. There are two middlemen in this
channel of distribution, namely, wholesaler and retailer. This channel is most
suitable for the products with widely scattered market. It is used in the
distribution of consumer products like groceries, drugs, cosmetics, etc. It is
quite suitable for small scale producers whose product line is narrow and who
require the expert services and promotional support of wholesalers.

 Selection Criteria of a Distribution Channel

While selecting a distribution channel, the entrepreneur should compare the
costs, sales volume and profits expected from alternative channels of
distribution. In order to select the right channel for distributing his product,

 A small-scale manufacturer should keep in mind the following

considerations:
 Market Considerations:
The nature of the market is a key factor influencing the choice of channels of
distribution. The following features of the market should be considered to
determine the channels.
 Consumer or Industrial Market:
If the product is meant for industrial users, the channel of distribution will be a
short one. This is because industrial users buy in a large quantity and the
producer can easily establish a direct contact with them. But in case for goods
meant for consumers, retailers may have to be included in the channels of
distribution.
 Number and location of buyers:
When the number of potential customers is small or the market is
geographically located in a limited area, direct selling is easy and economical.

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In case of large number of customers, use of wholesalers and retailers
becomes necessary.
 Size of order:
Direct selling is convenient and economical where customers place order in
big lots as in case of industrial goods. But where the product is sold in small
quantities, middlemen are used to distribute such products. A manufacturer
may use different channels for different types of buyers. He may sell directly
to big retail stores and may use wholesalers to sell to small retailers.
 Customers buying habits:
The customer buying habits like the time he is willing to spend, the desire for
credit, the preference of personal attention and one stop shopping
significantly affect the choice of distribution channels.

 Product Considerations:
The type and nature of the product influence the number and type of
middlemen to be chosen for distributing the product.

 The important factors with respect to the product are as follows:

 Unit value:
Products of low unit value and common use are generally sold through
middlemen, as they cannot bear the cost of direct selling. On the other hand,
expensive consumer goods and industrial products are sold directly by the
producers.
 Perishability:
Perishable products like vegetables, fruits and bakery items have relatively
short channels, as they cannot withstand repeated handling. Goods, which
are subject to frequent changes in fashion and style, are generally distributed
through short channels, as the producer has to maintain close and continuous
touch with the market.
 Bulk and weight:
Heavy and bulky products are distributed directly to minimize handling costs.
Coal, bricks, stones, etc., are some examples.

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  Standardization:
Custom-made and non-standardized products usually pass through short
channels due to the need for direct contact between the producer and the
consumers. Standardized and mass-made goods can be distributed through
middlemen.
 Technical nature:
Industrial products requiring demonstration, installation and after sale service
are often sold directly. The consumer products of technical nature are
generally sold through retailers.
 Product line:
An entrepreneur producing a wide range of products may find it economical
to set up its own retail outlets. On the other hand, firms with one or two
products find it profitable to distribute through wholesalers and retailers.
 Age of the product:
A new product needs greater promotional effort and few middlemen may like
to handle it. As the product gains acceptance in the market, more middlemen
may be employed for its distribution.
 Middlemen Considerations:
The cost and efficiency of distribution depend largely upon the nature and
type of middlemen as given in the following factors:
 Availability:
When middlemen as desired are not available, an entrepreneur may have to
establish his own distribution network. Non-availability of middlemen may
arise when they are handling competitive products, as they do not like to
handle more brands.
 Attitudes:
Middlemen who do not like a firm's marketing policies may refuse to handle
its products. For instance, some wholesalers and retailers demand sole
selling rights or a guarantee against fall in prices.
 Services:
Use of those middlemen is profitable who provide financing, storage,
promotion and after sale services.

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  Sale Potential:
An entrepreneur generally prefers a dealer who offers the greatest potential
volume of sales.
 Costs:
Choice of a channel should be made after comparing the costs of distribution
through alternative channels.
 Company Considerations:
The nature, size and objectives of the business firm also play an important
role in the selection of distribution channel. It includes financial resources,
market

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 CHAPTER: 2
FMCG INDUSTRY

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Fast Moving Consumer Goods popularly known FMCG is as the name
suggests is the most demanded products in the market. It includes everything
from food items like flour, biscuits, ice creams, etc to body products soaps,
face creams to cigarettes to beverages, etc. consumers need these things in
their everyday life so they invests
a good portion of their income in these things. There are so many companies
which are dealing in FMCG products like HUL, Dabur, Cavin Care, AMUL
dealing in dairy products, etc. By the very nature of the product the companies
are seeing this as a great source of income. As large number of companies is
looking this sector as a profitable venture, so for sustaining their position and
gain new market they have to bring something unique in their products or
services to gain position in the market or to sustain there.
In modern business distribution network has a great impact on the success of
any business. In the FMCG segment the role of an excellent distribution
channel becomes even more crucial because the delivery of FMCG Product is
confined to day to day basic. Hence in order to survive and thrive in a highly
competitive market you have to have a distribution channel which has no
problem at any point of the distribution channel.
The factor which is of crucial importance to survive in any business is the
understanding of the mind of the individual consumers. What are main
characteristics which consumer consider while making a purchasing decision
regarding FMCG Product.
In order to make right decision regarding all these aspects the company
requires a complete knowledge of the problems faced in distribution channel
and what should be done in order to overcome all these problems.
Better infrastructure facilities will improve their supply chain. FMCG sector is
also likely to benefit from growing demand in the market. Because of the low
per capita consumption for almost all the products in the country, FMCG
companies have immense possibilities for growth. And if the companies are
able to change the mindset of the consumers, i.e. if they are able to take the
consumers to branded products and offer new generation products, they
would be able to generate higher growth in the near future.

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 Figure no: 2.1 FMCG companies in India

A. Global level:
Fast-moving consumer goods are the high volume, low priced items that
are quickest to leave the supermarket shelves. They include durable and
non-durable goods such as cosmetics, toiletries, detergents, batteries,
plastic goods, paper products, etc. Packaging is vital to the FMCG market
as it is an essential element for proper positioning of the product.
Packaging allows effective communication between consumers and brand
owners through graphics, colors, images, product information and logos.
This serves as an important medium for communication and a tool for
companies to distinguish product appearance from that of their rivals. In
the fast-moving consumer goods (FMCG) sector, packaging plays a key
role in affecting consumer choice and thus an important factor in point-of-
purchase decisions. Nowadays, the marketing environment has become
competitive and complex. This is due to inclusion of modern marketing
tools such as packaging, branding and other aspects at a large scale as
compared to basic marketing techniques.

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In order to enhance product visibility in the market, packaging has emerged
as a unique tool to create a direct impact on consumer perception about the
corresponding product. Factors such as increasing middle-class population in
developing countries, changing consumer lifestyles and technological
advancements to develop eco-friendly packaged products are expected to
drive the demand for FMCG packaging in the near future. Furthermore,
changing consumer lifestyles support the demand for varied consumer
products which is expected to enhance the growth of this market. This has led
to differentiated packaging which indirectly affects manufacturers. However,
compliance of stringent environmental regulations related to packaging is a
key factor restraining the market growth. Creation of new materials with the
help of sustainable packaging to offer efficient designs is a key trend driving
the FMCG packaging market.
The FMCG packaging market is segmented on the basis of packaging type
and end-user industries. The various types of packaging materials based on
the type of product include protective packaging, flexible packaging, paper-
based packaging, rigid plastic packaging, custom packaging and others.
These packaging materials face challenges due to sourcing based on
parameters like health consciousness, mobility and consumerism in
pharmaceutical and health products. Shift in global buying patterns of
consumers coupled with a surge for value-added products has led to an
increase in consumer willingness for premium products. Thus, to target the
consumer spending for packaging, companies are focusing on developing
attractive packaging products. FMCG packaging serves end-user industries,
such as food, beverages, healthcare, cosmetics and others. Among all the
end-user industries, the food & beverages sector serves as the largest market
for packaging companies to invest in the long run. The demand for packaging
in recent years is being recognized across the emerging markets with
developed markets retaining their market share with a modest growth.
However, demand from emerging markets is expected to record a double-digit
growth in the next five to six years.
Packaging in the FMCG sector accounts for a large share in the material cost
involved in developing a finished product. Thus companies at a global level
are developing innovative packaging solutions to minimize the operational
26
cost. The FMCG packaging market is highly fragmented when analyzed from
the supply side perspective with less number of companies having a
substantial share in the total market. This leads to less entry barriers for new
entrants in this market. However, skilled labor, equipment and machinery are
identified as barriers for a sustainable growth in the near future. Nestlé S.A.,
Procter & Gamble Company and PepsiCo Inc. are among the leading FMCG
companies across the globe. Other prominent players of the FMCG packaging
market include Kimberly-Clark, Altria Group, Kraft Foods, Mendel International
Inc., Philip Morris International Inc., Unilever Group, Amcor Limited and Tetra
Pak International.

B. National level:
Fast Moving Consumer Goods (FMCG) Industry in India is one of the fastest
developing sectors in the Indian economy. These products have very fast
turnaround rate, i.e. the time from production to the revenue from the sales of
the product is very less. In the present economic scenario, time is regarded as
money, so the FMCG companies have to be very fast in manufacturing and
supplying these goods.
The Fast Moving Consumer Goods (FMCG) Industry in India include
segments like cosmetics, toiletries, glassware, batteries, bulbs,
pharmaceuticals, packaged food products, white goods, house care products,
plastic goods, consumer non-durables, etc. The FMCG market is highly
concentrated in the urban areas as the rise in the income of the middle-
income group is one of the major factors for the growth of the Indian FMCG
market.
The penetration in the rural areas in India is not high as yet and the
opportunity of growth in these areas is huge by means of enhanced
penetration in to the rural market and conducting awareness programs in
these areas. The scopes for the growth of the FMCG industry are high as the
per capita consumption of the FMCG products in India is low in comparison to
the other developed countries. The manufacturing of the FMCG goods is
concentrated in the western and southern belt of the country. There are other
pockets of FMCG manufacturing hubs FMCG Brands in India are some of the
leading revenue earners. The FMCG Industry in India ranks fourth in the
27
country's economy. The FMCG brands require well-established distribution
networks as the competition between the different brands are tremendous.
Different FMCG Brands in India targets different echelons of the society, the
elite class, the middle class, and the lower class, as well as the rural populace
in India. The FMCG sector in India has huge growth potential.
Some of the FMCG products such as jams, toothpaste, skin care, shampoos,
etc, have potential growth opportunities but still these products have high
growth opportunities in terms of per capita consumption. Hindustan Lever is
one of the leaders in the FNCG Industry in India. Personal care, cigarettes,
and soft drinks are among biggest categories in the Indian FMCG Industry.

 FMCG Sector in India

The FMCG Sector in India is the fourth largest sector in the Indian economy.
As per the reports of the 2005-06 financial years, the market size of the sector
was registered as USD 13.1 billion. The FMCG Sector in India involves a strict
competition between the organized and unorganized sector of consumer
durables.
India offers an abundance of raw materials, low-priced labor costs, and also
has a presence across the entire value chain. The market size of the Indian
some product categories such as jams, toothpaste, skin care products, hair
care products, etc have experienced a low per capital consumption as per a
report presented in 2006.
As per the recent developments in FMCG it is assumed that the consumption
of the FMCG products will have a satisfactorily growth with the rising income
level of Indian populace in both the rural and urban areas. Around 200 million
people are expected to become the consumers of processed and packaged
foods by the year 2010.
The major activities of the food-processing sector are permitted 100% foreign
equity or 100% NRI and Overseas Corporate Bodies (OCB) investment to
meet the rising demand of the consumers.

28
  Recent Developments in FMCG Sector in India:

Finance Minister, Mr. P. Chidambaram declared several tax sops for the
FMCG sector in India along with putting due emphasis on the infrastructure
developments in the same
The usual growth drivers such as penetration, per capita consumption,
population, and household income were quite strong in 2007 and also the
consumption of the FMCG products has been increased outstandingly in 2007
customs duty on food processing machineries were reduced from 7.5% to 5%,
excise duties on food mixes were reduced from 16% to 8%, and taxes were
reduced on edible oils. ITC, Dabur, HUL and Marico were directly benefited
from these.
The consumption of health and personal care products in FMCG sector has
increased in the recent past with rise in disposable income especially among
the youth group in India

 Overview of FMCG Retailing in India

Fast Moving Consumer Goods (FMCG) can be defined as packed goods that
are consumed or sold at regular and small intervals. The prices of the FMCG
are relatively less and profits earned through such sales are more volume
based. The organized FMCG Retailing in India is a new concept and is fast
catching up in urban and semi-urban India.

 The organized retail markets in India cater FMCG products :

 Toiletries
 Soaps and detergents
 Cleaning and disinfecting agents
 Cosmetics
 Non-durables
 Pharmaceuticals

29
Further, the packaged food products and drinks is also sold under the FMCG,
since these items are consumed or bought at regular intervals. Furthermore,
recently the electronic items like mobile phones, MP3 players, external hard
drives, etc, which has less life owing to its technological development, has
also been brought under the gamut of FMCG sector.

 Some of Fast Moving Consumer Goods companies operating in

India
 ITC
 Procter & Gamble
 Nestle
 Unilever
 Tata Tea
 Amul
 Dabur
 Kissan
 Parle
 Marico
 Britannia
 Coca-Cola
 Reckitt Benckiser
 PepsiCo
 Wilkinson
 Lakme
 L’Oreal
 GlaxoSmithKline
 Cadbury
 Everest

30
  Consumer Class in FMCG Sector in India

Consumers play a crucial role in the Indian FMCG sector as the price band of
each FMCG product is fixed depending largely on the consumer class which
the particular company is targeting. A number of variants are offered by each
brand in the FMCG sector. For example, the personal care, home care,
bakery products, dairy products, processed foods are more consumed by the
urban classes whereas the personal care items and fabric care are consumed
more by the rural population.
Some of the FMCG companies like Nestle India, Cadbury, Procter & Gamble
(P&G) and SmithKline Beecham offer high-priced branded products as these
companies target the elite and upper middle class consumers. These high-
priced branded products do not have high sales in the rural regions as much
as it does in the urban section of India.
Processed food manufacturers gain more profit in the urban areas as the
urban population has a higher preference for ready-to-eat meals. The
consumption of personal care items is high in the rural regions.
High literacy rates and an increase in the per capita income of the inhabitants
led to a rise in the consumption of the FMCG products in the country.

 Some Facts About the FMCG Market in India

The FMCG sector has attracted a large number of consumers in both the
urban and rural sectors in India the past few decades through better
penetration and low-priced products. Various manufacturers of FMCG
products are concentrating on increasing the sales volume due to the rising
demand of the consumers. Creativity and innovation are the major attributes
required for success in the sector. Large-scale FMCG companies have won
the hearts of consumers by delivering high-end and innovative products at
affordable range.

31
 C. State level:
FMCG Market in Gujarat is well developed. Gujarat is one of the most
industrially developed states in India. Most of the major FMCG companies of
India operate in Gujarat.
FMCG Market in Gujarat is important for the state. Gujarat is one of the most
industrially developed states in India. The state of Gujarat is famous for its
traditional and organized business class. The state has a rich history of
successful business men in India and it has one of the highest per capita
incomes in India. Due to the process of industrialization, there is a general
rise income and consumers are spending more on FMCG based goods.
Cities like Gandhinagar, Ahmadabad, Vadodra, etc are some of the most
important cities in the state of Gujarat. These urbanized cities have facilitated
the rise of FMCG consumerism in Gujarat. FMCG products in Gujarat are
offered through organized retailing and through small time retail shops.
The fast moving consumer goods (FMCG) segment is the fourth largest sector
in the Indian economy. The market size of FMCG in India is estimated to grow
from US$ 30 billion in 2011 to US$ 74 billion in 2018.
A food product is the leading segment, accounting for 43 per cent of the
overall market. Personal care (22 per cent) and fabric care (12 per cent) come
next in terms of market share (Indian retail report).
Growing awareness, easier access, and changing lifestyles have been the
key growth drivers for the sector.

 Market size

This revenue was generated as a result of Procter & Gamble's numerous

billion U.S. dollar brands within the consumer goods industry. In 2015, four of
the company's brands were ranked within the top fifteen personal care brands
in the world; the leading one being Gillette, which had a brand value of about
19.74 billion U.S. dollars.
Procter & Gamble is also one of the biggest spenders in the world when it
comes to its advertising campaign. Selling, general and administrative
expense (SG&A) is primarily comprised of marketing expenses, selling
expenses, research and development costs, administrative and other indirect
32
overhead costs, depreciation and amortization expense on non-manufacturing
assets and other miscellaneous operating items. Research and development
costs are charged to expense as incurred and were $2.0 billion in 2014, 2013
and 2012. Advertising costs, charged to expense as incurred, include
worldwide television, print, radio, and internet and in store advertising
expenses and were $9.2billion in 2014, $9.6billion in 2013 and $9.2billion in
2012. Non-advertising related component so the Company's total marketing
spending include costs associated with consumer promotions, product
sampling and sales aids, which are included in SG&A ,as well as coupons and
customer trade funds, which are recorded as reductions to net sales. Procter
& Gamble, one of the top two FMCG firms in the world, has topped Nestle and
ITC to become India's third-largest consumer products maker after nearly
doubling its sales in the country in the last three years. P&G's three entities in
the country, selling a wide variety of products ranging from detergents and
shampoo to razors to sanitary napkins, posted combined revenues of Rs
9,274 crore for the year ended March 2014, slightly ahead of Nestle India's Rs
9,197 crore and the FMCG business of ITC that had sales of Rs 8,099 crore
(ETIG database& P&G annual report 2014).

"In fiscal 2014, we generated robust sales growth across all entities through a
strong innovation programmer across product categories and pricing for
added consumer benefits," a P&G spokesperson said. Market leader
Hindustan Unilever (HUL) is, however, three times P&G's size in India and
competes with it in most household and personal care categories. Number
two, Amul, is twice as big with over Rs 18,000 crore in sales but doesn't
compete with the US consumer giant in any segment.
P&G has three subsidiaries in the country — Procter & Gamble Health &
Hygiene, which markets feminine hygiene brand Whisper and Vicks anti-cold
balm; Gillette India, maker of razors and other shaving products; and Procter
& Gamble Home Products, best known as the maker of Ariel and Tide
detergents. P&G has been clocking compound annual growth rate, or CAGR,
of about 25% in the country since the last decade.
In the past two years, it has invested over Rs 2,000 crore in the country. Big
investments have taken a toll on its local profitability though. The unlisted
33
P&G Home Products posted a loss of Rs 100 core for FY14, down from a loss
of Rs 481.5 crore in FY13. The company is unperturbed.
"We continued to drive profitability in a competitive market environment with
strong sales growth and productivity driven cost savings," the P&G
spokesperson said. "In addition, our focus on end to end efficiencies resulted
in positive cash flows from operations." P&G completed setting up a new
multi-product plant in Hyderabad last month, as part of a strategy to ramp up
local production and distribution to match up HUL in terms of product prices
and reach.

FIGER NO: 2.2 Rank of FMCG industry.

D. PESTEL ANALYSIS:

 Political:
Tax Structure: Complicated tax structure, high in direct tax and changing tax
policies are challenges for this sector.
Infrastructure Issues: Performance of FMCG sector is very much dependent
on government spending on Agricultural, Power, and Transportation
Infrastructure.
Regulatory Constraints: Multiplicity permits and licenses for various states,
prevailing outdated labor laws, and cumbersome and lengthy export
procedures are major constraints. Policy framework: FDI into Retail
sector (single-brand & multi-brand retail), License rules in setting up of

34
Industry, Changes in Statutory Minimum Price of commodities are barriers for
growth of this sector.

 Economical:
GDP Growth: Growth of FMCG industry is consistent with the Indian
economy. It has grown by 15 % over past 5 years. It shows good scope for
this sector in near future.
Inflation: Inflationary pressures alter the purchasing power of consumer which
Indian economy is facing in recent years. But it has not affected much to
Indian FMCG sector.
Consumer Income: Over the past few years, India has seen increased
economic growth. The GDP per capita income of India increased from 797.26
US dollars in 2006 to 1262.4 US dollars in 2014. It resulted in increase of
consumer expenditure .
Private Consumption: The Indian economy, unlike other economies, has a
very high rate of private consumption (61%).

 Social:
Change in consumer Profile: Rapid urbanization, increased literacy, increase
in nuclear families and rising per capita income, have all caused rapid growth
and change in demand patterns, leading to an explosion of new opportunities.
Around 45 per cent of the population in India is below 20 years of age and the
young population is set to rise further.
Change in Lifestyle: In past decade changes are taking place in consumption
pattern of Indian consumer with more spending on discretionary (52%) than
necessities (eg food, clothing). In last decade the apparel, footwear and
healthcare segments have registered highest growth whereas essentials such
as cereals, edible oil, fruits and vegetables shown decline.
Rural focus: As market is getting saturated, companies are focusing on rural
area for penetration by providing consumers with small sized or single-use
packs such as sachets.

35
  Technology:
Effective use of technology is seen only in leading companies like HUL, ITC
etc. E- Commerce will boost FMCG sales in future. More than 150 million
consumers would be influenced by digital by 2020 and they will spend more
than $45 billion on FMCG categories.

 Environmental:
This FMCG manufacture products from row material that are groom in the
fields and are result of agriculture activities in the region, there for they are
care full in protecting and preserving the environment some of the effort
include setting up of greenhouse use of herbal waste supporting rag pickers
establishing green building and procedures that are green minimize
consumption of clean and fresh water. The constraint on energy is reducing
by the using source of alternative energy like herbal waste.

 Legal:
Government replaced various indirect taxes impose on FMCG with more
direct approach ex: GST. these will helping lower in prices as all the taxies
impose increase the cost of production and producer passes it on to
consumer they cannot under pay agricultural sector for profit maximization
also they cannot fool customers in any way buy claiming something for their
product which it is in capable of doing in actual the law also for bids FMCG
industry to artificially increase prices by making a products scarce the law for
marketing product states that one company cannot mock product of another
company by explicitly taking its name or showing its picture.

E. Current trend:
 Consumer durables revenues have been growing at a healthy pace
 The consumer durables sector revenues reached US$ 9.7 billion in
FY15 and are expected to reach US$ 12.5 billion in FY16 (IBEF).
 Consumer durable market expected to grow at CAGR of 13 percent
from FY05 to FY20
 Around two third of the total revenue is generated from urban
population and rest is generated from rural population
36
 Samsung has emerged as the market leader in the
consumer durable segment followed by the Indian giant Videocon

FIGER NO: 3 Annual Growth Report

FIGER NO: 4 Shares in Indian retail sectors

37
 F. Major players and offering:
No Companies
1 Hindustan Unilever Ltd
ITC (Indian Tobacco
2 Classic, Gold Flake, Navy Cut, Scissors,
Company)-
3 Nestlé India
4 GCMMF (AMUL)
5 Dabur India
6 Asian Paints (India)
7 Cadbury India
8 Britannia Industries
9 Procter & Gamble
Hygiene and Health Care
10 Marico Industries
Table no: 2.1 Major players and offering
Companies product
Lux, Lifeboy, Brookebond, Kawality Walls,
Surf Excel, Pepsodent, Close Up, Vaseline,
and many more
W. D. & H. O. Wills, Insignia, India Kings,
Capstan, Berkeley, Bristol and Flake
Kitkat, Milkmaid, Milky Bar, Maggie,
Nescafe, Nestle Slim Milk, Barone.
Amul Kool, Masti Butter Milk, Kool Cafe,
Amul’s sugar-free Pro-Biotic Ice-cream, etc.
Hajmola, Real, Vatika, Nature Care,
LalDantmanjan, Chyawanprash, Pudin Hara,
Amla, Etc.
Interior walls paint and other paints.
Gems, 5 Star, Perk, Celebrations, Eclairs,
And Dairy Milk
Tiger, good day, 50-50, treat, milk bar, and
nutra choice
- Vicks Action 500+, Vicks VapoRub, Vicks
Cough Drops, Vicks Formula 44 Cough
Syrup and Vicks Inhaler
Parachute, Saffola, Mediker, Silk-n-Shine,
Revive, Hair & Care, Stheyekar, Manjal, etc
38
 CHAPTER: 3
Sandesh Distributor Pvt. Ltd.

39
Sandesh Distributor PVT LTD is Distributor of South Gujarat for P&G-Gillette
India since December 2005. They have 17 branches all over South Gujarat
and more than 600+ employees working with them.

Sandesh Distributor PVT LTD distributes all P&G-Gillette products in South

Gujarat. SDPL major brands are Head & Shoulders, Pantene, Pampers,
Whisper, Tide, Ariel, Tube Shave Gel, Ambipure, Olay, Vicks, Vaporub, Action
500, Mach-3, Turbo Mach-3, Fusion etc.

Sandesh Distributor PVT LTD have turnover of 235+Crs per anum. They are
serving approximately 26,500 Outlets including MR (Modern Retail) stores like
Food Bazaar, D-Mart, and Star Bazaar etc. across South Gujarat.

Sandesh Distributor Private Limited is a Private incorporated on 28 November

2005. It is classified as Non-government Company and is registered at
Registrar of Companies, Jaipur. Its authorized share capital is Rs. 1,000,000
and its paid up capital is Rs. 270,000.It is involved in Wholesale of household
goods

Sandesh Distributor Private Limited's Annual General Meeting (AGM) was last
held on 30 September 2015 and as per records from Ministry of Corporate
Affairs (MCA), its balance sheet was last filed on 31 March 2015.

Directors of Sandesh Distributor Private Limited are Vikas Dang, Sanjay

Lahoti, Rakesh Kumar Nagpal, Dilip Nagpal, Shashi Kant Bihani and Pawan
Lahoti.

Sandesh Distributor Private Limited's Corporate Identification Number is (CIN)

U51391RJ2005PTC021672 and its registration number is 21672.

40
Company Details:

SANDESH DISTRIBUTOR PRIVATE

Company Name
LIMITED
Company Status Active
Registration Number 21672
Company Category Company limited by Shares
Company Sub Category Non-govt company
Class of Company Private
Date of Incorporation 28 November 2005
Age of Company 10 years, 10 month, 8 days

Activity Wholesale of household goods

Email address dfe_surat@yahoo.co.in

Table no: 3.1 Company Details

41
 ORGANOGRAM

Distributor Leadership Team

OPRATIONAL HR FINANCE SYSTEM LOGISTIC

MANAGER MANAGER MANAGER ADMIN MANAGER

Hub Hub Hub

SELLES
Hub DHRE Finance System Logistic
MANAGER
Executive Executive Executive

Business Asst. Asst.

Exucutive & BE Finace System DLOS
capacity Executive executive

Branch D.Boy
STLS AMS IDSS
Incharge /HELPER

A/C
DSES VTL/MTL
cashier

CVC

FIGER NO: 3.1 ORGANOGRAM

42
  DEPARTMENTS
 Finance department.
Finance department will be responsible for all the day to day transactional
accounting for the business. This will include the tracking of all transactions
and the management of any government reporting. In very small owner-
managed businesses this role is often filled by a family member with
accounting experience. An outside accounting firm is usually used for annual
financial statements and returns.
The finance department is also responsible for management of the
organization’s cash flow and ensuring there are enough funds available to
meet the day to day payments.
Where there are cash needs beyond the day to day working capital, the
finance department is responsible for advising and sourcing longer term
financing.
The finance department will work with managers to prepare the organization’s
budgets and forecasts, and to report back on the progress against these
throughout the year. This information can be used to plan staffing levels,
asset purchases and expansions and cash needs, before they become
necessary.
Finally, the finance department should be called upon to provide information
to assist managers in making key strategic decisions, such as which markets
or projects to pursue or the payback periods for large capital purchases.

 IT department
A company's information technology department plans, operates and supports
an organization’s IT infrastructure, enabling business users to carry out their
roles efficiently, productively and securely. The department must meet
multiple business and technical requirements, provide a secure IT
infrastructure and minimize costs.
 Network
The IT team develops and operates a network to support effective
communication and collaboration. Increasingly, they are deploying the latest
Internet Protocol networks with the capability to carry all voice, data, video
and Internet traffic on a single network.
43
  Data
IT teams develop tools to collect, store, manage, secure and distribute data to
employees who need access to the latest information to make decisions about
strategic, financial and operational issues. They store company information
from sources such as customer records, sales data, market research,
financial records, manufacturing and inventory data in a single data center.
The team also sets up links to collect data from retailers, distributors and the
supply chain so that managers can make sales, marketing and production
decisions based on the latest information.
 Support
To enable employees to make the most effective use of IT resources, the IT
team provides various forms of user support. After installing new software or
network facilities, the team provides training so that employees can quickly
make productive use of the new resources. The team also provides ongoing
support to users through a helpdesk or self-service facilities on the company
intranet.

 HR department
The overall HR process is developed and managed by this department. The
HR process comprises coordinating, administering and retention of the
organization’s workforce.
 Recruitment
They advertise job postings, source candidates, screen applicants, conduct
preliminary interviews and coordinate hiring efforts with managers responsible
for making the final selection of candidates.
 Compliance
Compliance with labor and employment laws is a critical HR function.
Noncompliance can result in workplace complaints based on unfair
employment practices, unsafe working conditions and general dissatisfaction
with working conditions that can affect productivity and ultimately, profitability.
HR staff must be aware of federal and state employment laws such as Title
VII of the Civil Rights Act, the Fair Labor Standards Act, the National Labor
Relations Act and many other rules and regulations.

44
  Sales department
A sales manager works towards the goals and objectives of the organization.
He is the one who sets the targets for the sales executives and other sales
representatives. A sales manager must ensure the targets are realistic and
achievable.
 Purchasing - optimization of costs while also maintaining the standard of
the work generated is the responsibility of the purchasing department.
 Supply Chain - ensures that all products of the FMCG industry are
manufactured and delivered in the scheduled time.

It is the sales manager’s duty to map potential customers and generate leads
for the organization. He should look forward to generating new opportunities
for the organization.
A sales manager is also responsible for brand promotion. He must make the
product popular amongst the consumers. A banner at a wrong place is of no
use. Canopies must be placed at strategic locations; hoardings should be
installed at important places for the best results.
Motivating team members is one of the most important duties of a sales
manager. He needs to make his team work as a single unit working towards a
common objective.
It is the sales manager’s duty to ensure his team is delivering desired results.
A sales manager is responsible for not only selling but also maintaining and
improving relationships with the client. Client relationship management is also
his KRA.
 Operations department
Reporting to the Managing Director you will have responsibility for driving the
operational aspects of the business to include sales, logistics / supply chain
and warehousing.
Key functions are:
 Develop a trade marketing plan tailored to each account and new
business opportunity

45
  Negotiation of terms of sale, credit terms, returns, margins & volume
Be responsible as a point of contact for the retail customer regarding
any product / merchandise related issues
 The logistics and manufacturing departments are organized and
managed by the operations department.

 SWOT analysis:
Strengths:
 SDPL have 17 branches all over South Gujarat.
 Over 600+ employees are working globally.
 Sandesh PVT LTD have turnover of 235+Crs per anum.
 They are serving approximately 26,500 Outlets including MR (Modern
Retail) stores like D-Mart, and Star Bazaar etc. across south Gujarat.
 Deep roots in local culture and great understanding of consumer
needs.
 Low operational costs and presence of established distribution network
in both urban and rural areas.
Weaknesses:
 Fake products sold under the name of their brands
 Its products have stiff competition from big domestic players and
international brands
 Higher turnover ratio adversely affects relationship with the customers
Opportunities:
 Rising income levels, i.e. increase in purchasing power of consumers
 Large domestic market- a population of over one billion.
Threats:
 Intense and increasing competition amongst other FMCG companies.
 Competition from unbranded and local products
 Slowdown in rural demand

46
  Market position
The Procter & Gamble Company is the largest manufacturer and seller of
household products in the world. Olay, Pantene, Head & Shoulders, Gillette,
and Pampers are some of its major brands. Given that the consumer staples
sector is highly competitive, P&G faces local as well global competition from
various players worldwide.

 Porter’s five forces

In examining Porter’s five competitive forces at work at P&G,
We find that three are horizontal in nature:
1. competitive intensity among rivals
2. new entrants to P&G’s product categories
3. ease of product substitution
And two are vertical:
1. customer bargaining power
2. supplier bargaining power

 Horizontal forces
P&G offers a wide range of products, and so it’s hard for a new company to
compete with a similar product portfolio. Peers Unilever (UL) and Estee
Lauder (EL) invest large amounts of capital on comprehensive research for
their beauty brands. Using this research, the companies develop complete
marketing strategies to promote particular products as special and distinct. In
this way, UL and EL are able to compete with P&G in specific areas of the
company’s giant portfolio.

P&G’s focus has always been on quality and innovation. Many local
and international brands, including Colgate-Palmolive (CL), offer substitutes,
such as Colgate, for Oral-B.

 Vertical forces
Due to the massive scope of P&G’s business, it relies on relationships with
third parties to perform certain functions—suppliers, distributors, contractors,
joint venture partners, or external business partners, among others.
47
P&G maintains standard pricing with its suppliers. As a large customer, it
enjoys significant bargaining power with its suppliers. Still, it should be noted
that even P&G isn’t immune from broader market movements related to
commodity prices.

 Bargaining power
Consumer staple products typically have low demand elasticity. But the fast-
moving consumer goods, or FMCG, industry is also subject to stiff
competition, which tends to mitigate this fact.
Consumers can be price-sensitive, and it’s easy to switch between products,
which tends to reduce P&G’s bargaining power. That said, prices are
relatively more inelastic for products such as Gillette, Pampers, and Olay,
where P&G is the market leader.

 Connect and develop

In 2001, P&G adopted a collaborative innovation strategy called “Connect and
Develop.” The idea was and is to allow P&G to identify and create worldwide
partnerships with universities and institutes, sole inventors, emerging
companies, small and medium enterprises, multinational corporations, and
competitors. Through these partnerships, P&G develops a better
understanding of consumer demands and their product responses.
For example, the P&G and Circle Up partnership was created to mutually
benefit both P&G and startup firms. P&G gains exposure to new technology
that might match its innovation needs. At the same time, startups gain
valuable funding to pursue new technological developments.
According to a Reuters report published June 24, Wall mart (WMT), P&G’s
biggest customer, wants to charge a fee to all vendors for stocking and
warehousing, which would put pressure on suppliers.

48
 CHAPTER: 4
REVIEW OF LITERATURE

49
Smith et al, (2002) based on all empirical studies and literature review they
have generated an understanding that there are several factors and variables
that guide the retailers’ attitude toward manufacturer and it can be more
positively changed by understanding their further expectations. So it will help
us to advance our understanding on this phenomenon if they move toward
further studies on the retailers’ attitude to identify the gaps of manufacturer-
retailer relationships which will help us to establish a long term profitable
belief system in the channel.

Schiff man &Kanuk (2004) claimed that it is the aim of relationship marketing
to create strong, lasting relationship with a core group of customers. He
emphasized on developing long-term bonds with customers by making them
feel good about how the company interacts with them and by giving them
some kind of personal connection to the business. In this research study they
are trying to explore the efficiency level of Unilever in serving their channel
partners, mostly the retailers, to improve the relationship with them by
overcoming their deficiencies.

Bhattacharya (2005) also studied that the FMCG companies change the track
of distribution to attract customers .Several FMCG companies have taken to
unconventional modes of distribution. CavinKare Pvt. Ltd. has created two
separate brands - Chinni for smaller pack sizes and Priya for larger packs -
And instead of using the conventional distribution route, they have created a
`sachet' sales force that sells only sachet packs to small retailers, including
cigarette and pan shops. Emami Ltd. tied up with the Post and Telegraph
Department to place its products across 5,000 post offices. Wipro Consumer
Care and Lighting (WCCL) have been using the Andhra Pradesh
Government's e-seva project, which aims at enhancing the common man's
interface with the Government. Coupled with traditional distribution methods,
this approach allows WCCL to reach consumers who otherwise may not come
to a retail point. Alternative distributions channels do not offer better margins
and are, at best, tools to gain accessibility in certain areas. Also, distribution
margins across these channels are identical to those in conventional routes,

50
so there is little cost saving. So, while alternative distribution options are
gaining acceptability, it may be some time before these become a rage.

Eisenhardt, (2007) Fast-moving consumer goods (FMCG) or consumer

packaged goods (CPG) are products that are sold quickly and at relatively low
cost. Examples include non-durable goods such as soft drinks, toiletries, and
grocery items. Though the absolute profit made on FMCG products is
relatively small, they are generally sold in large quantities, and so the
cumulative profit on such products can be substantial,

Muthuy (2008) conducted a study to investigate the distribution strategies

adopted by various firms in their market and distribution of their products.
Particular attention was paid to cosmetic companies. The objectives of this
study was to find out the various distribution strategies adopted in marketing
of wares and the factors influencing adoption of such strategies. The findings
of the study revealed that, most of the firms are yet to embrace strategic
marketing and distribution ways in order to sell their products and
subsequently leap marginal profits. The choice of good distribution channel is
paramount in ensuring high returns and easy distribution of the products to
the consumers. Besides, firms should adopt modern technology in improving
their distribution of the products. This technology may involve use of phones,
internet, online catalogues, and use of couriers to deliver products to
consumers, if embraced will see vast returns.

Gautam and Gangal (2011) analyzed the factors responsible of the boom in
rural marketing, consumers‟ preference for FMCG products based on 4 „A‟s
(i.e. Awareness, Affordability, Adoptability and Availability) by employing
convenient sampling method for administering the questionnaires using Liker
Scale to total 200 respondents of HUL & ITC in rural areas of Agra district
from January 2011 to June 2011. The study found that skincare and fragrance
have been found as the prime reasons for using bathing soaps (personal
wash) and consumers buy detergent due to its primary function for cleanliness
and few purchase it for its fragrance. The cleanliness follow by freshness has
51
been the primary motives to purchase toothpaste (oral care) and some
consumers also purchase it for protection of gums and whiteness value. The
consumers purchase hair oil for hair care and good looks. The study also
found that the factors influencing the purchase decision of the respondents,
consumers buying are influence the most by the product factor due to design,
quality, durability, made from safe environment and product range but few
respondents are not satisfied with the packaging, image and size of the
product. Both the companies are almost on the same platform regarding the
factors of competitive price, shape, design, and message/languages/
presentation of advertisement. The consumers are showing their
dissatisfaction for malls and super markets, greater mobility, shop is
conveniently situated, and product display is attractive, value for price paid,
cash discount and pricing policy. Lastly, the study concluded that in
parameters like, image, shape and size, packaging, durability, small size
products, low priced sample packets, price scheme, celebrity endorsement
and use of transport like autos, camel carts, HUL has an edge over ITC.

Vernekar and Wadhwa (2011) examined the consumer attitudes and

perceptions towards eco-friendly products in FMCG sector and their
willingness to pay on green products. The study revealed that the green
products have substantial awareness among urban Indian customers and
they are willing to pay something more on green products. The majority of
customers considered that package is most important element of such
products.

Muhammad, Choudhury (2011) The study addresses the performance related

issues as to what extent is the impact of various factors responsible in terms
of retailers for doing business with manufacturers in FMCG (Fast Moving
Consumer Goods) sector at Dhaka in Bangladesh The result of the Multiple
Regression analysis that there is a significant relationship of retailers’ attitude
(dependent variable) and the factors determined in the factor analysis
(independent variables). Together the independent variables explained 67.9%
of the variance of the dependable variables whereas the remaining 32.1%
was due to unidentified variables. Therefore the results of the study definitely
52
play a vital role and leave an ever lasting impact to be used in decision
making by retailers and the entire company as a whole. Moreover this study
can be used as a reference for the future studies to understand the
perceptions and opinions of the other channel members in addition to retailers
as they all.

Mohamed Mudawi (2011) in this review paper the researcher aimed to

discuss and investigate information systems and how productive and effective
it is and how to measure those variables. In this paper, the author discusses
many of the important IS success research contributions of the last decade,
focusing especially on research efforts that apply, validate, challenge, and
propose enhancements to IS productivity and effectiveness. This paper also
discussed systems, information, and service quality with the factors
influencing the efficiency and effectiveness of information systems. Finally,
the author suggested a series of recommendations and findings regarding
current and future measurement of IS success

Chandrasekhar (2012) analyzed the consumer buying behavior and brand

loyalty in rural markets regarding fast moving consumer goods and found that
brand loyalty is more in Badangpet and Nadergul region and less in Chintulla
in soaps category. In hair oil category, branded products usage is more in
Badangpet and Nadergul villages and consumer prefer to purchase local
brands in Chintulla village. It is also found that Vatika and Navratan hair oils
dominate in Badangpet, Parachute hair oil in Nadergul and Gograda local
brand and Dabur in Chintulla. In case of Biscuits category, consumers mostly
buy in loose, which are available in nearby shops like Salt biscuits, Osmania
biscuits etc. Parle-G and Tiger are mostly used brands in Badangpet. Tea is
purchased in loose, which is available in local shops. The popular brands Red
Label, Three Roses and Gemini are used in Badangpet village. Further, the
study found that coffee consumption is very less or no consumption in
Nadergul and Chintulla villages. In case of washing powder, Nirma dominate
all the three selected sample rural markets regions. In remote area like
Chintulla, Nirma sell Rs. 1 sachets. In washing soap category, Rin, 501,
Nirma, and Extra Local Brand dominates all the three selected rural markets.
It is also concluded that Ponds, Chintol and Santoor face powder dominated
53
the market and Pond’s has dominated the market in consumption in
Badangpet. In sum, the study also found that male members of the family are
alone going to buy consumer products and women are not interested in
shopping and do not come out from their houses frequently.

Jain and Sharma (2012) analyzed the brand awareness and customer
preferences for FMCG products in rural market of Garhwal region. The study
found that average awareness of the respondents in the rural market is
approximately 75 per cent, 70 per cent, 72 per cent, 64 per cent and 73 per
cent in case of shampoo, washing powder, soap, tea, toothpaste respectively,
which infers that people in the rural market have on an average awareness
about most of the products. In the shampoo category, the study found that the
respondents give 1st rank to Pantene and last rank to Chick; in case of
washing powder, 1st rank to Surf Excel and last rank to Nirma; to soap
category, 1st rank to Dettol and last rank to Rexona; in case of Tea, 1st rank
to Tata tea and last rank to Maharani tea and in category of toothpaste, 1st
rank to Colgate and last rank to Cibaca which infers that advertising and
marketing activities have major influences in choices of people in rural market.
The study further found that among various factors like quality, price, easy
availability, family liking, advertisement, variety, credit attributes of brand
preference; the quality is the first preference in case of brand choices and
rural people give least preference to variety and credit attributes. It is also
concluded that there is a positive impact of media on brand preference of
FMCG products among consumers.

Prajapati and Thakor (2012) examined the competitive and innovative

promotional tools used by toothpaste companies in rural market and its impact
on consumer buying behavior in Gujarat. The study found that rural
consumers are more concerned about the quality, brand name of the oral care
products purchased by them. Further, it was also found that once the rural
consumers found that certain brands are suitable to them, they do not change
it easily due to influence of friends or social groups and lack of availability of
their usual brands. In toothpaste category, Colgate and Close-up are the most
favorite brands. Price, promotional schemes, color and availability of the
54
product are more influencing factor when they buy the toothpaste. Rural
consumers are generally following the instructions of the retailers for buying
the toothpaste and also consider the promotional scheme when buy the
toothpaste and the prices off schemes are the most influencing scheme to
them. When there are special discount and dentist suggest them to purchase
the toothpaste they definitely purchase it.

Ranu and Rishu (2012) analyzed the scope of Ingredient branding in creating
sustainable differentiation advantage for FMCG companies. The results of the
study revealed that careful planning must be done before entering into a
relationship in order to maximize the benefits of any ingredient branding
strategy. Along with the costs involved in forming and maintaining the alliance,
and the opportunity cost involved for the partnering firm, the consumer’s
quality sensitivity and their ability to evaluate quality must also be considered.
Firms considering an ingredient branding strategy must also evaluate the
customer’s perception toward each brand prior to the alliance. The perceived
fit of the products as they all as the brands must be understood, and the level
of customer familiarity with each brand must be gauged. This will help
marketers in developing a successful Ingredient branding strategy, which
builds on the strengths of the partnering brands and generates additional
value for the consumer.

Mishra, et al. (2012) examined the major dimensions of consumers’

perception about the benefits they derive from different types of sales
promotion schemes in durable goods and to build a framework showing the
valid relationships among all types of multiple consumer benefits of sales
promotion in consumer durables. This exploratory study is mainly based on
field survey carried out in India. The findings indicate that consumers perceive
factors like savings, higher product quality, shopping convenience categorized
as utilitarian benefits and value expression, entertainment, exploration
categorized as hedonic benefits as primary reasons for taking advantage of
various sales promotion schemes.

55
Vaishnani (2012) examined and measured brand equity perception with
reference to sales promotion schemes for selected FMCG products and it is
concluded that there is no significant difference of brand equity perception
among gender as one of the demographic variables. Apart from it, it is
concluded that there is significant difference of brand equity perceptions
among various employment status. Adding to it, it is clear that self employed
consumers compare to not employed consumers perceive sales promotion
schemes less favorably. Furthermore, it is concluded that there is no
significant difference of brand equity perception and educational qualification.

KOSHY C.J (2014) the study is analyzes the effectiveness of FMCG

distributors in Kerala. Through this study it can be understand the level of
retailer satisfaction which determines the effectiveness of FMCG distributors
in Wayanad district, Kerala. The results drawn in the study is purely based on
the survey conducted among the retailers. With a direct distribution system
the marketer reaches the intended final user of their product by distributing
the product directly to the distribution channels are defined and classified.
Their development is explained and new possibilities of their development in
contemporary conditions are indicated. In this sense, a variety of distribution
channels exists, as the contemporary understanding of managing supply
chains and value creation networks. The results from the study indicates that
majority of the respondents are satisfied with the services offered by the
distributors.

Joe Nyaga (2014) the general objective was to investigate factors affecting
distribution of fast moving consumer goods (FMCG) in Kenya, with particular
emphasis on Eveready East Africa Limited. The study specifically aimed to;
determine the effect of competition; establish the effect of price; analyze the
effect of promotion and investigate the effectiveness of demand forecasting
on distribution of Eveready East Africa Ltd products. The study findings
indicated that the major factors affecting distribution of the company fast
moving consumer goods are; high competition from cheap imports, high
prices of the company FMCG in comparison to the competitors FMCGs,

56
application of ineffective promotion campaigns and lack of effective demand
forecasting systems. The study recommendations they are introduction of less
expensive and high quality FMCGs in the market that is dominated by cheap
and poor quality imports application of effective pricing strategies like
competitor based pricing; offering of effective promotion methods such as
sales promotion and continuous advertising and application of effective
demand and forecasting systems such as distribution requirement system and
material requirement system.

57
 TABLE NO: 4.1 Review of literature

Sr. Author and

Objective Variables Conclusion
no year
To identify the
factors The study found that rural
Salespeople
affecting the buyers perceived that TV
Dr. surinder ,Own
purchase commercials, print
Singh Kundu experience
1 decisions of advertisements and word of
(September ,Reference
customers mouth plays a significant role
2013) group
towards the for taking the decision to
purchase of purchase these FMCG.
FMCGs.
The study found that the factors
To identify the influencing the purchase
factors decision of the respondents,
affecting the consumers buying are
Gautam, N., purchase Quality, size influence the most by the
2. and Gangal, decisions of of the product factor due to quality,
V. K. (2011) customers product. durability, made from safe
towards the environment and product range
purchase of but few respondents are not
FMCG. satisfied with the packaging,
image and size of the product.
To identify the gaps of
To manufacturer-retailer
understanding relationships this would help to
several factors establish a long term profitable
communicati
Smith et and variables belief system in the channel.
3. on with
al,(2002) that guide the
salesperson
retailers’
attitude toward
manufacturer

58
 The study is
Delivery The results from the study
analyzes the
time indicates that majority of the
KOSHY C.J effectiveness
4. Flexibility respondents are satisfied with
(2014) of FMCG
Availability the services offered by the
distributors in
of product distributors.
Kerala.
The results of the study
definitely play a vital role
and leave an everlasting
Factors impact to be used in
Muhammad Affecting decision making by retailers
Intisar Alam Retailers and the entire company as
and Afreen Attitude Scheme & a whole. Moreover this
5.
Choudhury. Towards discount study can be used as a
(Apr2011) Manufacturers: reference for the future
A Study on studies to understand the
Unilever.” perceptions and opinions of
the other channel members
in addition to retailers as
they all.
The aim of
relationship
In this research study trying to
marketing
explore the efficiency level of
to create Relationship
Schiff man Unilever in serving their
strong, and
6. &Kanuk channel partners, mostly the
lasting communicati
(2004) retailers, to improve the
relationship on
relationship with them by
with a core
overcoming their deficiencies.
group of
customers.
The FMCG Alternative distributions
Bhattacharya
7. companies Size, margin channels do not offer better
(2005)
change the margins and are, at best, tools

59
 track of to gain accessibility in certain
distribution areas. Also, distribution
to attract margins across these channels
customers. are identical to those in
conventional routes, so there is
little cost saving. So, while
alternative distribution options
are gaining acceptability, it may
be some time before these
become a rage.
A distribution The selection of an appropriate
strategy is distribution strategy is a major
intended to determinant of an organizations
establish a success and distribution
Cateora and dominant decisions represent much
8 Graham position in Geographic longer-term commitments than
(2007) the do other marketing decisions
geographic because of the time, costs and
markets intermediate relationships that
served by are involved in gaining access
firms. to an established channel.
Fast-moving consumer goods
(FMCG) products that are sold
quickly and at relatively low
The FMCG
cost. Though the absolute profit
products in
made on FMCG products is
small size Margin and
Eisenhardt, relatively small, they are
9 should be size of
(2007) generally sold in large
efficient in packet
quantities, and so the
small
cumulative profit on such
retailer.
products can be substantial

60
 To investigate
the
distribution
strategies Most of the firms are yet to
adopted by embrace strategic marketing
Muthuy various and distribution ways in order
10 Margin
(2008) firms in to sell their products and
their market subsequently leap marginal
and profits.
distribution
of their
products.
The study revealed that the
the consumer green products have
attitudes substantial awareness among
and urban Indian customers and
Vernekar perceptions they are willing to pay
Package ,
11 and Wadhwa towards something more on green
Quality
(2011) eco-friendly products. The majority of
products in customers considered that
FMCG package is most important
sector element of such products.

To what extent
is the
This study can be used as a
impact of
reference for the future studies
various
Muhammad, to understand the perceptions
factors
12 Choudhury Geographic, and opinions of the other
responsible
(2011) channel members in addition to
in terms of
retailers as they all.
retailers for
doing
business

61
 with
manufactur
ers in
FMCG
discuss and
investigate
information
systems the author suggested a series
and how of recommendations and
Mohamed
productive findings regarding current and
13 Mudawi satisfaction
and future measurement of IS
(2011)
effective it success
is and how
to measure
those
variables
analyzed the
consumer
buying
The study also found that male
behavior
members of the family are
and brand
Quality, alone going to buy consumer
Chandrasek loyalty in
14 Size of products and women are not
har (2012) rural
package interested in shopping and do
markets
not come out from their houses
regarding
frequently.
fast moving
consumer
goods
To analyzed Quality, The study further found that
Jain and the brand price, easy among various factors like
15 Sharma awareness availability, quality, price, easy availability,
(2012) and family liking, family liking, advertisement,
customer advertiseme variety, credit attributes of

62
 preferences nt, variety, brand preference.
for FMCG credit
products in attributes of
rural brand
market of preference.
Garhwal
region.
To examined
the
competitive
and
innovative
promotional
tools used
The study found that rural
by
Prajapati and consumers are more
toothpaste
16 Thakor Quality concerned about the quality,
companies
(2012) brand name of the oral care
in rural
products purchased by them.
market and
its impact
on
consumer
buying
behavior in
Gujarat.
To analyzed The perceived fit of the
the scope products as they all as the
of brands must be understood,
Ranu and Ingredient Availability and the level of customer
17
Rishu (2012) branding in of product familiarity with each brand must
creating be gauged. This will help
sustainable marketers in developing a
differentiati successful Ingredient branding

63
 on strategy, which builds on the
advantage strengths of the partnering
for FMCG brands and generates
companies. additional value for the
consumer.
To examined
the major
The findings indicate that
dimensions
consumers perceive factors like
of
savings, higher product quality,
consumers’
savings, shopping convenience
perception
higher categorized as utilitarian
about the
Mishra, et al. product benefits and value expression,
18 benefits
(2012) quality, entertainment, exploration
they derive
shopping categorized as hedonic benefits
from
convenience as primary reasons for taking
different
advantage of various sales
types of
promotion schemes.
sales
promotion
schemes
examined and
measured
brand
equity
perception
it is concluded that there is no
with
Vaishnani significant difference of brand
19 reference
(2012) equity perception and
to sales
educational qualification.
promotion
schemes
for selected
FMCG
products

64
 To investigate They are introduction of less
factors expensive and high quality
affecting FMCGs in the market that is
distribution dominated by cheap and poor
Price of
Joe Nyaga of fast quality imports application of
20 product and
(2014) moving effective pricing strategies like
quality
consumer competitor based pricing
goods offering of effective promotion
(FMCG) in methods such as sales
Kenya, promotion.

65
 CHAPTER: 5
RESEARCH METHEDOLOGY

66
a. Problem Statement

Productivity is critical to the success of any business firm that wants to gain
and maintain market share. The organization is in need of an appropriate
measure of customer satisfaction that will lead to productivity from its
customers. With the help of distribution channel the marketer reach the
intended final user of their product.
The present study tried to analyze the effectiveness of distribution channel in
Surat it will consider the level of retailer satisfaction which determine the
effectiveness of FMCG distributor channel in Surat.

b. Research objective
 To identify the factors affecting the purchase decision towards P & G
brand from Sandesh Pvt. Ltd.
 To study effectiveness of small distribution channel
 To study satisfaction level of customer towards small distribution
channel.

c. Research Design

“The research design is the method and process for the conducting particular
study, broadly speaking; it can be grouped in the three main categories –
Exploratory, Descriptive and Causal.
1. Type of design

“The research design is the method and process for the conducting particular
study, broadly speaking; it can be grouped in the three main categories –
Exploratory, Descriptive and Causal.
Descriptive

 Descriptive study is used when researcher interested in knowing the

features of certain group like age, sex, educational level, operation etc.”

 This research conducted is a descriptive research. This is descriptive in

nature because the study is focused on fact finding investigation in a

67
 structured form and is based on primary data. Primary data has been used
in the form of a questionnaire in order to collect data.

2. Sampling:

Sample size of this survey was 300 respondents.

3. Data collection:

 Sources of Data:

This research study is based on primary data structured questionnaire has

been used.
 Sampling method

The non probability convenience sampling method was use to collect the
responses.

 Survey Tools
A Structured questionnaire was used as tool of data collection.

4. Tools of analysis:

The data tabulated in Ms-excel and SPSS for making analysis easier. In this
research SPSS software package version 21.0 was used for analyzing the
data collected for the study.

5. Limitation of Study
 The possibility of respondent’s responses being biased cannot be ruled
out.
 Due to small sample size the study may not be generalized.

68
 CHAPTER: 6
DATA ANALYSIS &
INTERPRETATION

69
 To study the demographic information of respondent.

Annual business (in Rs.):

Table no 6.1 annual businesses

Annual business (in Rs.) Frequency Percentage

<200000 36 12.0

200000-400000 176 58.7

400000-600000 81 27.0

>600000 7 2.3

Total 300 100.0

Annual business (in Rs.)

>600000
2%

<200000
400000-600000 12%
27%

200000-400000
59%

Figure no: 6.1 annual business

INTERPRETATION:

From the above table 6.1 it is found that 2 % of respondent’s Annual Business
is Above Rs.6 lakh, 27 % of respondents having a Annual Business between
Rs.4 lakh to 6 lakh, 59 % of respondent having a Annual Business between
Rs.2 lakh to 4 lakh, 12 % of respondent having a Annual Business below Rs.
2 lakh.

70
Area:

Table no 6.2 area

Area Frequency Percent

Udhna 75 25.0

Bamroli 24 8.0

Katargam 116 38.7

Pandeshara 45 15.0

Varacha 40 13.3

Total 300 100.0

Area

Varacha Udhna
13% 25%
Pandeshara
15%

Bamroli
Katargam 8%
39%

Figure no: 6.2 Area

INTERPRETATION:

From the above figure 6.2 it can be concluded that 39 % of respondent are
from Katargam, 25 % of respondent are from Udhna, 15 % of respondent are
from Pandeshara, 13 % of respondent are from Varacha and only 8 % of
respondent’s from Bamroli.

71
  To study following factors satisfied or not by the
respondent.

Table no 6.3 statements of the study

Statements SD D N A SA Total

Required products are always available with

0 5 119 176 0 300
Sandesh Distributor Pvt. Ltd.

There are no defective products at a time of

0 0 137 163 0 300
delivery

The margin on the require product is

0 11 150 134 5 300
attractive by SPDL.

Required packet size of the product is

0 0 120 175 5 300
available with SDPL.

Sandesh Distributor Pvt. Ltd provides require

0 0 120 158 22 300
quantity of the product.

Regular visit of same sales person is

0 102 124 74 0 300
important

Visiting timings of the sales person are

0 93 133 74 0 300
convenient

Product is delivered on convenient time 0 0 116 164 20 300

Sandesh Distributor Pvt. Ltd provides flexible

16 151 133 0 0 300
damage & credit policy

It is easy to communicate with salesperson of

0 65 126 109 0 300
Sandesh Distributor Pvt. Ltd.

Sandesh Distributor Pvt. Ltd offers special

0 69 126 105 0 300
discount for P&G products.

Dealing experience with Sandesh Distributor

0 12 186 102 0 300
Pvt. Ltd. is good.

72
 Statements

Dealing experience with Sandesh Distributor Pvt.

Ltd. is good.

Sandesh Distributor Pvt. Ltd offers special

discount for P&G products.

It is easy to communicate with salesperson of

Sandesh Distributor Pvt. Ltd.

Sandesh Distributor Pvt. Ltd provides flexible

damage & credit policy

Product is delivered on convenient time

Visiting timings of the sales person are convenient

Regular visit of same sales person is important

Sandesh Distributor Pvt. Ltd provides require

quantity of the product.

Required packet size of the product is available

with SDPL.

The margin on the require product is attractive by

SPDL.

There are no defective products at a time of

delivery

Required products are always available with

Sandesh Distributor Pvt. Ltd.

0 20 40 60 80 100 120 140 160 180 200

Strongly agree Agree Neutral Disagree Strongly disagree

Figure no: 6.3 statements

73
INTERPRETATION:

According to survey it is found that 117 respondent are satisfied with the
required products are always available with SDPL,163 respondent are
satisfied with the there are no defective products at a time of delivery, 150
respondent are satisfied with the margin on the require product is attractive by
SPDL, 175 respondent are satisfied with the Required packet size of the
product is available with SDPL, 158 respondent are satisfied with the SDPL
provides require quantity of the product., 124 respondent are neutral with the
Regular visit of same sales person is important, 113 respondent are neutral
with the Visiting timings of the sales person are convenient, 164 respondent
are satisfied with Product is delivered on convenient time,151 respondent are
dissatisfied with the Sandesh Distributor Pvt. Ltd provides flexible damage &
credit policy,126 respondent are neutral about It is easy to communicate with
salesperson of SDPL., 126 respondent are neutral about Sandesh Distributor
Pvt. Ltd offers special discount for P&G products., 104 peoples is satisfied
with readability of menu items that available at Sugar N Spice Restaurant, 99
peoples is satisfied with accuracy in customer order cooked,186 respondent
are neutral about Dealing experience with Sandesh Distributor Pvt. Ltd. is
good.

74
 2. How many times a distributor visits your outlet per month?

Table no 6.4 number of visits of distributor

Particulars Frequency Percentage

Once 82 27.3

alternative week 218 72.7

Total 300 100

once alternative week

218

82
72.7

27.3

Frequency Percent

Figure 6.4: number of visits of distributor to retailer

INTERPRETATION:

According to survey it is found that 27 % of respondent who are cover once in

monthly, 72.7 % of respondent who are cover regular twice in monthly from
SDPL.

75
 3. How many times do you expect distributor to visit your outlet?

Table no 6.5 expectation of visit of outlet

Particulars Frequency Percentage

alternative week 114 38.0

more than 2 times 186 62.0

Total 300 100

alternative week more than 2 times

186

114

62.0
38.0

Frequency Percent

Figure no: 6.5 expectation of visit of outlet

INTERPRETATION:

According to survey it is found that 38 % of respondent who expect distributor

to visit your outlet are cover alternative week, 62 % of respondent who expect
distributor to visit your outlet are cover more than two times in monthly from
SDPL.

76
 4. Amount of your monthly sales (in Rs) of P&G products?

Table no 6.6 monthly sales of p&g

Monthly sales (in Rs.) Frequency Percentage

0-1000 58 19.3

1000-2000 123 41.0

2000-3000 88 29.3

>3000 31 10.3

Total 300 100.0

Frequency Percent

123

88

58
41.0
29.3 31
19.3
10.3

0-1000 1000-2000 2000-3000 >3000

Figure no: 6.6 monthly sales of p & g

INTERPRETATION:

According to survey it is found that 19.3 % of respondent’s monthly sales

below 1000rs, 41 % of respondent’s monthly sales between 1000-2000rs,
29.3% of respondent’s monthly sales between 2000-3000rs, 10.3% of
respondent’s monthly sales above 3000rs.

77
 5. What is your overall satisfaction level towards your distributor?

Table no 6.7 overall satisfactions

Particulars Frequency Percentage

highly satisfied 4 1.3

Satisfied 182 60.7

Neutral 109 36.3

Dissatisfied 5 1.7
Total 300 100.0

Frequency Percent

182

109

60.7
36.3

4 1.3 5 1.7

highly satisfied satisfied neutral dissatisfied

Figure 6.7 overall satisfactions

INTERPRETATION:

According to survey it is found that 13 % of respondent are highly satisfied

with SDPL, 60.7 % of respondent are satisfied with SDPL, 36.3 % of
respondent are neutral with SDPL and 17 % of respondent are dissatisfied
with SDPL.

78
 6. How likely do you wish to continue purchasing product from
SDPL?
Table no 6.8 how likely continue purchasing product from SDPL

Annual business (in Rs.) Frequency Percentage

very likely 17 5.7

somewhat likely 230 76.7

somewhat unlikely 30 10.0

no opinion 23 7.7

Total 300 100.0

Frequency Percent

230

76.7

30 23
17 10.0
5.7 7.7

very likely somewhat likely somewhat unlikely no opinion

Figure no: 6.8 how likely continue purchasing product from SDPL

INTERPRETATION:

According to survey it is found that 5.7 % of respondent are very likely, 76.7 %
of respondent are somewhat likely, 10 % of respondent are somewhat unlikely
and 7.7 % of respondent are no opinion wish to continue purchasing product
from SDPL

79
Factor Analysis:

Table no:6.9 KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .789

Approx. Chi-Square 637.803
Bartlett's Test of Sphericity Df 66
Sig. .000

INTERPRETATION:
The KMO and Bartlett’s test table displays the results for interpreting the
adequacy of data for factor analysis. (KMO) is a measure of sampling
adequacy for our sample to be adequate for understanding factor analysis. In
this test the value of KMO test is 0.789 and the p-value of Bartlett’s test is
637.803 factor analysis can be undertaking with this data.

80
 Table no:6.12 Total Variance Explained

Component Initial Eigenvalues Extraction Sums of Squared Rotation Sums of Squared

Loadings Loadings
Total % of Cumulativ Total % of Cumulative Total % of Cumulative
Variance e % Variance % Variance %
3.822 31.853 31.853 3.822 31.853 31.853 1.991 16.591 16.591
1

1.715 14.290 46.143 1.715 14.290 46.143 1.935 16.123 32.714

2

1.057 8.811 54.954 1.057 8.811 54.954 1.885 15.709 48.423

3

1.006 8.386 63.340 1.006 8.386 63.340 1.790 14.916 63.340

4

5 .863 7.193 70.533

6 .769 6.408 76.941
7 .643 5.362 82.303
8 .555 4.625 86.928
9 .488 4.065 90.993
10 .393 3.277 94.270
11 .354 2.951 97.220
12 .334 2.780 100.000

Table no: 6.13 Component Transformation Matrix

. Component Transformation Matrix

Component 1 2 3 4
1 .510 .557 .418 .505
2 -.594 -.223 .736 .237
3 -.197 .628 .259 -.707
4 .590 -.496 .466 -.434

81
INTERPRETATION:

The total variance explained table displays the total variance, percentage
variance and cumulative percentage variance for both –unrotated and rotated
components. The first half of the table shows details of unrotated components
and the second half shows the details of rotated components. The cumulative
variance for both the unroatated and rotated components is 63.340 %.for
unroatated component the first component explain the maximum variance,
followed by declining variance of the second and third component ,where as
in rotated components, the variance is uniformly distributed.

The component matrix table shows the 4 components that are extracted.
This is unrotated component matrix. The unrotated component matrix displays
the correlation between variables and the extracted components. These
correlations are known as factor loadings. The first factor is more highly
correlated with the variables than the second factor.

82
 Table no:6.10 Component Matrix
Component
1 2 3 4
Required products are .564 .581
always available with
Sandesh Distributor Pvt.
Ltd.
There are no defective .597 -.517
products at a time of
delivery
The margin on the require .529 .504
product is attractive by
SPDL.
Required packet size of the .631
product is available with
SDPL.
Sandesh Distributor Pvt. Ltd .601
provides require quantity of
the product.
Regular visit of same sales .639
person is important
Visiting timings of the sales .632
person are convenient
Product is delivered on -.622
convenient time
Sandesh Distributor Pvt. Ltd -.510
provides flexible policy
It is easy to communicate .740
with salesperson of
Sandesh Distributor Pvt.
Ltd.
Sandesh Distributor Pvt. Ltd .678
offers special discount for
P&G products.
Dealing experience with .624
Sandesh Distributor Pvt.
Ltd. is good.

83
 Table no:6.14 Rotated Component Matrix
Component
1 2 3 4
Required products are .785
always available with
Sandesh Distributor Pvt.
Ltd.
There are no defective .850
products at a time of
delivery
The margin on the require .705
product is attractive by
SPDL.
Required packet size of the .734
product is available with
SDPL.
Sandesh Distributor Pvt. .736
Ltd provides require
quantity of the product.
Regular visit of same sales .739
person is important
Visiting timings of the sales .670
person are convenient
Product is delivered on .751
convenient time
Sandesh Distributor Pvt. .640
Ltd provides flexible policy
It is easy to communicate .657
with salesperson of
Sandesh Distributor Pvt.
Ltd.
Sandesh Distributor Pvt. .510 .521
Ltd offers special discount
for P&G products.
Dealing experience with .694
Sandesh Distributor Pvt.
Ltd. is good.

84
INTERPRETATION:

In the rotated component matrix, each represents the partial correlation

coefficients between variable and the rotated component. These coefficients
help in identifying the component.

In this study the variable constituting policies are:

 Regular visit of same sales person is important
 Visiting timings of the sales person are convenient
 Sandesh Distributor Pvt. Ltd provides flexible damage & credit policy
 Sandesh Distributor Pvt. Ltd offers special discount for P&G products.

The variables constituting communication are

 Product is delivered on convenient time
 It is easy to communicate with salesperson of Sandesh Distributor Pvt.
Ltd.
 Dealing experience with Sandesh Distributor Pvt. Ltd. is good.

The variables constituting availability are

 Required products are always available with Sandesh Distributor Pvt.
Ltd.
 The margin on the require product is attractive by SPDL.
 Sandesh Distributor Pvt. Ltd provides require quantity of the product.

The variables constituting product delivery are

 There are no defective products at a time of delivery
 Required packet size of the product is available with SDPL.

85
CHAPTER: 7
FINDINGS

86
FINDINGS:

From the data analysis it can be found that 2 % of respondent’s Annual

Business are Above Rs.6 lakh, 27 % of respondents having a Annual
Business between Rs.4 lakh to 6 lakh, 59 % of respondent having a Annual
Business between Rs.2 lakh to 4 lakh, and 12 % of respondent having a
Annual Business below Rs. 2 lakh.

It can be concluded from the survey that 39 % of respondents are from

Katargam area, 25 % of respondent’s from Udhna area, 15 % of respondents
are from Pandeshara, 13 % of respondents are from Varacha and only 8 % of
respondents are from Bamroli.

According to survey it is found that 117 respondent out of 300 are satisfied
with the required products are always available with SDPL,163 respondent
are satisfied with the there are no defective products at a time of delivery, 150
respondent are satisfied with the margin on the require product is attractive by
SPDL, 175 respondent are satisfied with the Required packet size of the
product is available with SDPL, 158 respondent are satisfied with the SDPL
provides require quantity of the product..

From the analysis it can be found that 124 respondent are neutral with the
Regular visit of same sales person, 113 respondent are neutral with the
Visiting timings of the sales person, 164 respondent are satisfied with Product
is delivered on convenient time.

It can be concluded that 151 respondent are dissatisfied with flexible damage
& credit policy provided by SDPL, 126 respondent are neither satisfied nor
dissatisfied with easy communicate with salesperson of SDPL., 126
respondent are neutral about Sandesh Distributor Pvt. Ltd offers special
discount for P&G products, 186 respondent are neither satisfied nor
dissatisfied about Dealing experience with Sandesh Distributor Pvt. Ltd. is
good.

87
The KMO and Bartlett’s test table displays the results for interpreting the
adequacy of data for factor analysis. (KMO) is a measure of sampling
adequacy for our sample to be adequate for understanding factor analysis. In
this test the value of KMO test is 0.789 and the p-value of Bartlett’s test is
637.803, factor analysis can be undertaking with this data The cumulative
variance for both the unroatated and rotated components is 63.340 %.for
unroatated component the first component explain the maximum variance,
followed by declining variance of the second and third component, where as
in rotated components, the variance is uniformly distributed.

In factor analysis there are 4 components. They are the variable constituting
policy, communication, availability and product delivery.

In the policies Constituting Regular visit of same sales person is important,

visiting timings of the sales person are convenient, Sandesh Distributor Pvt.
Ltd provides flexible damage & credit policy, and Sandesh Distributor Pvt. Ltd
offers special discount for P&G products.

From the analysis it can be concluded that overall satisfaction of retailers with
Sandesh Distributor PVT. LTD is good.

88
CHAPTER: 8
CONCLUSION

89
Conclusion:

FMCG industry mainly depends upon their margin and flexible policy. The
services provided by the SDPL main drivers for the success. This suggests
that management may wish to seek attributes that are responsible for
returning of the Customers.

To examine customer satisfaction SDPL most of its customers is satisfied

with the attributes provided by SDPL like Required products are always
available with Sandesh Distributor Pvt. Ltd, There are no defective products at
a time of delivery, The margin on the require product is attractive by SPDL.,
Required packet size of the product is available with SDPL, Sandesh
Distributor Pvt. Ltd provides require quantity of the product.

From the study it can be concluded that Sandesh Distributor Pvt. Ltd provides
require quantity of the product, and required products are always available
with Sandesh Distributor Pvt. Ltd this two factor is highly agreed by the retailer
and Sandesh Distributor Pvt. Ltd provides flexible damage & credit policy, and
SDPL provides Regular visit of same sales person this two factor are highly
disagreed by the respondents.

Finally it is concluded that 60.7 % of customers having a good experience

with SDPL and deserve their loyalty.

90
 CHAPTER: 9
BIBLIOGRAPHY

91
ARTICALES:
Joe Nyaga. “FACTORS AFFECTING DISTRIBUTION OF FAST MOVING
CONSUMER GOODS IN KENYA: A CASE OF EVEREADY EAST
AFRICA.” International Journal of Social Sciences and Entrepreneurship
Vol.1, Issue 12, 2014.

Muhammad Intisar Alam, and AfreenChoudhury. “Factors Affecting Retailers

Attitude Towards Manufacturers: A Study on Unilever.” Journal of
Economics and Behavioral Studies Vol. 2, No. 4, Pp. 138-150, Apr 2011.

Musaab Mohamed Mudawi. Journal of Economics and Behavioral Studies

Vol. 2, No. 4, Pp. 138-150, Apr 2011.

TamashRanjanMajumdar, and Ajit Kumar Ray. ANALYSIS OF

PRODUCTIVITY AND EFFICIENCY–A THEORETICAL EXPOSITION OF
THE PRODUCTION FRONTIER APPROACH.

Surinder, Singh, and Kundu.Customers’ Perception Towards the Fast Moving

Consumer Goods in Rural Market: An Analysis. 21 Sept. 2013,
https://www.researchgate.net/publication/256839769_Customers%27_Per
ception_towards_the_Fast_Moving_Consumer_Goods_in_Rural_Market_
An_Analysis?enrichId=rgreq-1ba1590a-658a-4de0-a9c6-
159a5c110f4f&enrichSource=Y292ZXJQYWdlOzI1NjgzOTc2OTtBUzoxM
DIwMzMxNjgyNzM0MTVAMTQwMTMzODAxMTg3Mw%3D%3D&el=1_x_
2. Accessed 24 Nov. 2016.

Gautam, N., and Gangal, V. K. (2011), “Consumers‟ preference for FMCG

products in rural India: a comparative study of HUL & ITC”, APOTHEOSIS:
Tirpude‟s National Journal of Business Research, Vol. 2, Issue 1, pp. 115-
123.

92
Yanto Chandra, Chris Styles, and Ian F. Wilkinson,” An Opportunity-Based
View of Rapid Internationalization.’’Journal of International Marketing 2012,
American Marketing Association Vol. 20, No. 1, 2012, pp. 74–102 ISSN 1069-
0031.

Dr. Surinder Singh Kundu,’’ Customers’ Perception towards the Fast Moving
Consumer Goods in Rural Market.’’ International Journal of Techno-
Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

Nyaga, J. (2014), ‘’Factors affecting distribution of fast moving consumer

goods in Kenya’’ A case of Eveready East Africa, International Journal of
Social Sciences and Entrepreneurship, 1 (12), 290-302.

Muhammad Intisar Alam, AfreenChoudhury, ‘’Factors Affecting Retailers

Attitude towards Manufacturer.’’ Journal of Economics and Behavioral Studies
Vol. 2, No. 4, pp. 138-150, Apr 2011

93
Reference site:

https://www.ukessays.com/essays/marketing/effectiveness-and-efficiency-of-
distribution-channel-in-fmcg-marketing-essay.php?cref=1
http://business.mapsofindia.com/fmcg/
http://info.shine.com/industry/fmcg/6.html
http://www.ibef.org/
https://www.pg.com/en_IN/company/pg-india.shtml

https://www.statista.com/statistics/273236/brand-value-of-the-leading-personal-care-
brands-worldwide/

http://marketrealist.com/2015/05/analyzing-worlds-popular-fmcg-brands/

http://marketrealist.com/quote-page/cl/

https://www.researchgate.net/publication/256839769_Customers%27_Percep
tion_towards_the_Fast_Moving_Consumer_Goods_in_Rural_Market_An_Ana
lysis?enrichId=rgreq-1ba1590a-658a-4de0-a9c6-

94
ANNEXURE

95
 QUESTIONNAIRE

We are Rishi Patel and Richa Brahmbhatt pursuing MBA from S. R. Luthra
Institute of Management, Surat As a part of the curriculum doing research on “To
Study Effectiveness of Distribution for P & G Brand in Small Channel of Sandesh
Distributor Pvt. Ltd., South Gujarat” Kindly help us in the same by filling the
Questionnaire. Your response would be kept strictly confidential and would be used
only for academic research.

Personal Details:

Name: ___________________________________________________________

Annual Business: [ ] Below Rs.2, 00,000 [ ] Rs. 2 lakh – Rs.4 lakh

[ ] Rs.4 lakh – Rs.6 lakh [ ] Above Rs. 6 lakh

Area: _________________________________________________________

1. Provide your opinion about the followings for Sandesh Pvt. Ltd. Make
tick marks () to the appropriate answer.

[1=strongly disagree, 2=disagree, 3=neutral, 4=agree, 5=strongly agree]

Sr. no Statements 1 2 3 4 5

1 Required products are always available with Sandesh

Distributor Pvt. Ltd.

आवश्यक उत्पादों हमेशा संदेश ववतरक प्राइवेट विवमटेड के साथ उपिब्ध हैं।
2 There are no defective products at a time of delivery

डिलीवरी के समय में कोई दोषपूर्ण उत्पादों नहीीं रहे हैं

3 The margin on the require product is attractive by SPDL.

SPDL द्वारा उत्पाद की आवश्यकता पर मार्जणन आकषणक है।

4 Required packet size of the product is available with SDPL.

SDPL में उत्पाद के विए आवश्यक पैकेट आकार उपिब्ध है।

5 Sandesh Distributor Pvt. Ltd provides require quantity of the
product.

SDPL आपको उत्पाद की आवश्यक मात्रा प्रदान करता है।

6 Regular visit of same sales person is important

ववक्रेता को ग्राहक की मु लाकात ले ना आवस्यक(उपयोगी) हे

7 Visiting timings of the sales person are convenient

ववक्रेता का दौरा समय सुववधाजनक हैं

96
8 Product is delivered on convenient time ( प्रोिक्ट हरबार सही
समय पे डमलजाती हे ) उत्पाद सुववधाजनक समय पर ददया है

9 Sandesh Distributor Pvt. Ltd provides flexible damage &

credit policy

SDPL में िै मेज और क्रेडिट पॉडलसी दे ते हे

10 It is easy to communicate with salesperson of Sandesh

Distributor Pvt. Ltd.

SDPL के ववक्रेता के साथ बातचीत करना आसान हे

11 Sandesh Distributor Pvt. Ltd offers special discount for P&G
products.

SDPL P&G प्रोिक्ट पे ववशेष छू ट दे ते हे

12 Dealing experience with Sandesh Distributor Pvt. Ltd. is
good.

आपका SDPL के साथ अनु भव अच्छा हे

2. How many times a distributor visits your outlet per month? (१ महीने में डकतनी बार
ववक्रेता आपकी मु लाकात ले ते हे ?)

[ ] Once [ ] alternative week [ ] more than 2 times

3. How many times do you expect distributor to visit your outlet? (आप महीने में डकतनी
बार चाहते हे की ववक्रेता आपकी मु लाकात ले )

[ ] Once [ ] alternative week [ ] more than 2 times

4. Amount of your monthly sales (in Rs) of P&G products? (महीने का P&G प्रोिक्ट का
सेल्स? )

[ ] 0-1000 [ ] 1000-2000 [ ] 2000-3000 [ ] above 3000

5. What is your overall satisfaction level towards your distributor? (आपका डिस्ट्रीब्यूटर
के साथ अनु भव केसा हे )

[ ] Highly satisfied [ ] Satisfied [ ] Neutral [ ] Dissatisfied [ ] highly dissatisfied

6. How likely do you wish to continue purchasing product from SDPL? (आप SDPL के
साथ खरीदी जारी रखना चाहते हैं?)

[ ] very likely [ ] somewhat likely [ ] somewhat unlikely [ ] very unlikely [ ] no

opinion

97