IMSA-8 B, Block A, Sector 62,

Noida 201303,(U.P)

“Sales Distribution Strategy of Mother Dairy Safal.”

Project Dissertation in v Trimester.

PGDM 2012-14

Submitted by:

Name: Awanish Tripathi (PGD12023)

Mother dairy Fruit And Vegetable Pvt Ltd. (Safal),Delhi.

Project Mentor- Ms Surabhi Singh.Submitted by-Awanish Tripathi .

(PGD12023).

1

Declaration

I, “To understand the sales Distribution Strategy of Mother Dairy Safal . Awanish Tripathi, hereby declare that the project work entitled is an authenticated work carried out by me at MOTHER DAIRY under the guidance of Ms.Surabhi Singh. for the partial fulfillment of the award of the degree of POST GRADUATE DIPLOMA IN MANAGEMENT and this work has not been submitted for similar purpose anywhere else except to INSTITUTE OF MANAGEMENT STUDIES, NOIDA.

Awanish tripathi.

Pgd 12023

2

ACKNOWLEDGEMENT

It gives immense gratification to place on records my profound gratitude andsincere appreciation to each and everyone who has helped me in this endeavor.

I am thankful to my faculty guide of my institute ,for continued guidance and valuable encouragement.

On a personal note I would like to thank all my batch mates for their support. Any omission in this brief acknowledgement does not mean lack of gratitude.

Submitted By

. Awanish Tripathi.

Pgd 12023

3

Table Of Content

Sr.no. Particulars Pg.no

1. Executive Summary 5

2. History 6-19

3. Mission 20

4. Vission 21

5. Sbus and management team 22-36

6. SWOT 37-39

7. Findings 40-44

8. Anyalsis 45-49

9. Suggestion&Conclusion 50-51

10. Recommendation 52

4

EXECUTIVE SUMMARY

India is a market of diversity-diverse with regard to income, price points, culture and

preferences. The Indian lifestyle has a traditional predilection for fresh fruits and vegetables

or those processed at home. With the changing lifestyle and improved spending habits the

processed food consumption in India is gaining momentum. Country’s GDP has accelerated

well past the 7 to 8 percent per annum growth rate.

Mother dairy fruit and vegetable unit was set up in the year 1988 by the National Dairy Development

board as a corporate body whose aim was to provide a direct link between farmers and consumers. It

later on forayed into processed food segment through the much known Safal peas. Safal products are

sold through its 375 retail outlets in the Delhi-NCR region. With an objective to increase the market

share and boost up sales Safal decided to enter the General trade. To enter into the General trade a

well established distribution network is of paramount importance, so the project involved creation of

a market channel for Safal products. The effectiveness of distribution coverage is very important.

Understanding of the distribution coverage is important for the manufacturer to plan and implement

effective distribution strategy .The methodology used in the project is primary research which

involved surveying the catchment area to find the list of probable distributors and thereby meeting

and convincing them about our model. Study of channel partners was also undertaken. The

methodology used is questionnaire method with open ended questions. An overall analysis of the

competitors was also taken up. The project gave a huge area to explore the working of a channel

involving the channel partners & findings of the project are basically divided into the findings of the

retailers, distributors and the competitor’s schemes and margins. The findings are discussed in detail

in the project. The conclusion which can be drawn from the project depicts the difficulties which a

company faces while developing a distribution network and the type of distributor to search for in

case of processed food distribution. The recommendations given involve various changes in the

policies of the company. After putting lots of efforts the results seems to bein favor but still three

months is not enough to practically understand everything and get the improvements done with the

results. The results will blossom in the future.

5

Introduction

1.1. Mother Dairy Fruit and Vegetable Limited

Mother Dairy Fruit and Vegetable Limited (MDFVL), Delhi was set up in 1974 under the Operation Flood Programme. It is a wholly owned company of

National Dairy Development Board (NDDB). Mother Dairy markets and sells dairy products under the Mother Dairy brand (like Liquid Milk, Dahi, Ice

creams, Cheese and Butter), Dhara range of edible oils and the Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices at a national level

through its sales and distribution networks for marketing food items. The company markets an array of fresh and frozen fruit and vegetable products

under the brand name Safal through a chain of 350+ own Fruit and Vegetable shops. Fresh produce from the producers is handled at the Company’s modern

distribution facility in Delhi with an annual capacity of 200,000 metric tonne (MT). An Individual Quick Freezing (IQF) facility with capacity of around 75

MT per day is also operational in Delhi. A state-of-the-art fruit processing plant of fruit handling capacity of 120 MT per day, a 100 percent export oriented unit, setup in 1996 at Mumbai supplies quality products in the international market. With increasing demand another state-of-the-art fruit processing plant has been

set up at Bangalore with fruit handling capacity of around 250 MT per day. 

1.2. F&V Unit

Fruit and vegetable (F&V) unit was set up in the year 1988 by NDDB, with an objective to

provide a direct link between fruit and vegetable growers and consumers. The unit has drawn

6

on NDDB's three decades of dairy sector strengths in designing its state of the art large and

ultramodern central distribution facility (CDF) to handle fresh and frozen fruit and vegetable.

Mother Dairy (Milk) was also working as a unit of NDDB. To compete in a better way, these

two units were merged to form an independent company, MDFVL. So, F&V unit is a

strategic business unit of MDFVL.

1.3. Amul Pattern with Deviations

The unit was set up on Amul pattern but with certain deviations. The organization did not

facilitate the forming of village level cooperatives of producers. Instead, farmer associations

were formed. This was done to avoid the investments and huge fixed cost because of these

establishments. This decision was taken to be able to deal with the highly fluctuating market

of fruits and vegetables and its retail.

1.4. Physical Infrastructure and Certifications

F&V unit complex is situated on 22 acres of land. It comprises a prefabricated building

consisting of cold store chambers with different sets of temperature and humidity conditions

suitable for storage of various fruit and vegetables. It has controlled atmosphere chambers

and ripening rooms, deep freeze rooms, preparation hall, processing hall, dispatch hall,

reception, dispatch facilities etc. Material handling is done in specially designed plastic crates

with the help of forklifts. The unit also initiates and supports production enhancement

activities at farm, improved pre and post harvest practices, efficient logistics from farm to the

retail outlets, scientific quality assurance and education of grower, support staff and

consumer. Production of quality product begins at the farm level where the grower, in co-

operation with unit officials, work to cultivate and supply quality produce to the unit

(http://www.safalindia.com/companyprofile.htm).

With the utmost care and dedication, the growers and unit officials try to apply their

professional knowledge and skills to give consumers the best return for their money.

Standards are defined for each fruit and vegetable so as to link price to quality. Procurement

specialists and trained field staff help the farmers in crop management and protection. Efforts

7

are made to introduce new seed varieties and scientific methods of agriculture to increase the

yield and improve the quality of produce. 

Specially designed modern retail outlets have been set up in and around Delhi to market fresh

and frozen fruit and vegetables, directly to the consumers. Each shop caters to large number

of customers, with a capacity to sell 1,600 kilos of fruit and vegetables a day. The shops are

equipped with electronic machines that automatically weigh the produce and print item wise

bills.

F& V unit is International Organisation for Standardization (ISO) 9002: 2008 & Hazard

Analysis and Critical Control Points (HACCP) certified organization.

2. OBJECTIVES

The objectives of the study were:

To understand the structural and contextual dimensions of the organization.

To understand the implications of organizational power, politics and culture on the

organization .

To analyze the Human Resource (HR) practices and processes.

3. SCOPE AND LIMITATIONS

The study was conducted at the Central Distribution Facility of the fruit and vegetable (F&V)

unit of the organization. Major limitation of the study was inaccessibility of data and information

regarding financial statements and HR policies over a period of time. Availability of time was

another constraint.

4. METHODOLOGY

Structured and unstructured interviews were used to understand the functioning of the

organisation and its HR practices and processes. Informal discussions and unobtrusive

observations were done to understand organisational power, politics, culture and conflict.

Literature review and frameworks, PEST analysis and Mc Kinsey’s 7S framework were used to

8

analyse the environment of the organisation. Porter’s and Miles and Snow’s frameworks were

used to analyse the strategies followed by the organisation. Mintzberg model was also used to

understand the structure of the organization. Sample surveys of employees and casual workers

were conducted to understand their perception about various aspects of the organization.

4.1. Sampling Plan

The casual workers are employed in the operations department only for sorting, grading,

loading and unloading. Since all of them were in one department, random sampling was done

in the operations department only. The sampling plan used for the survey of employees was

on the basis of strength of employees in each level of all 9 departments in the organization.

Sample was drawn from all the three levels in the organization. The population to sample

ratio was 10:1. One employee was surveyed in case of the strength of number of employees in

a particular level of a department being less than 10. The table below details the strength of

the employees and the sample drawn from each level of a department.

Table 1Sampling Plan: Employees

Department Managers Middle Level

Helpers Total Sample

Operations 5 72 141 218

1 8 15 24

Procurement 18 30 12 60

2 3 1 6

Marketing 15 39 - 54

2 4 - 6

HR and Administration

3 5 - 8

9

1 1 - 2

Estate 1 6 11 18

1 1 2 4

Quality 1 3 6 10

1 1 1 3

Materials & Purchase 7 6 2 15

1 1 1 3

Finance and Accounts

3 8 - 11

1 1 - 2

Marketing Information Systems

2 6 - 8

1 1 - 2

Total 402 52

5. FUNCTIONING OF THE F&V UNIT: PROCESS FLOW

5.1. Procurement

Farmers associations are established in vegetables growing areas and wherever they are not,

the farmers are briefed about the unit and the assistance is provided to the farmers in crop

production, post harvest management, packing material, transportation and marketing of their

produce. Once the farmers start supplying their produce to the unit and show their willingness

to organize themselves, the farmers are guided by the unit’s field staff to form an association.

Supply arrangements are made available to the farmers associations which have been

established with or without unit’s guidance.

10

Procurement of fresh vegetables is done on the basis of marketing demand, processing

requirement and quality requirements of the unit. Procurement of fresh vegetables is done

from different places in the country such as Delhi, Himachal Pradesh, Maharashtra,

Rajasthan, Uttar Pradesh, Punjab, Madhya Pradesh, Karnataka, Gujarat and Uttranchal.

Sourcing of fresh vegetables is also done from individual farmers, societies, local traders,

government organizations and whole sale ‘Mandies’ of Delhi or other places.

5.2. Supply Chain

Figure 1

Supply Chain of Mother Dairy F&V Unit

11

Farmers’ Associations

Safal Booths

Consumers

Processing Plant

Collection Centers CDF

Fresh F&V

Products

The produce procured is transported to the CDF or processing unit from the collection

centers. The fresh fruits and vegetables are sent directly to the Central Distribution Facility

from the collection centers. In case of F&V required for products, they are transported to

processing units. The products are transported from the processing units to CDF. The

products, frozen F&V and fresh F&V are sent to Safal outlets from CDF. These outlets then

sell the fresh fruits and vegetables as well as the products to consumers.

5.3. Process Flow at the Unit

On arrival at CDF, the produce is weighed and checked for the quality by operations or

quality assurance departments. Non conforming produce is resorted or is sent to wholesale

mandi or back to areas if resorting is not feasible. Receipt is given by Operations department

12

Arrival dock

Dispatch hall

Quality checkResorted/returned

Item wise availability status reportBooth wise & route wise distribution reportSales order consolidation report

Batches preparedLoading in designated vehicles

Weighing

Dispatch dock

for the produce received by the Unit. All the processes of sorting and grading, weighing,

quality checking, preparation of batches and loading according the routes are all recorded in

the system. Item wise availability status report, booth wise and route wise distribution report

sales order consolidation etc., are generated.

Figure 2

Process Flow at the CDF

6. ENVIRONMENT ANALYSIS

Environment consists of all the forces that surround the organisation. These forces have the

potential to affect the way in which the organisation operates and its access to scarce resources.

The environment of any organisation consists of task environment or specific environment and

general environment. The specific environment directly affects the working of the organisation

and its control over scarce resources. On the other hand, the general environment affects the

organisation indirectly and it shapes the specific environment. The specific environment consists

of the consumers, competitors, suppliers and the government etc. The general environment

consists of macroeconomic forces, technological forces, political forces and socio-cultural forces.

6.1. Specific Environment of Mother Dairy F&V Unit

13

The specific environment of the organisation can be analysed as under-:

6.1.1. Consumers

The consumers are the most important constituents of specific environment of any

organisation. In case of Mother Dairy F&V Unit, there have been several changes in this

regard. The three aspects that have undergone change are-:

a) Number of Customers

The number of customers who purchase from the organised retail stores has increased

significantly in the recent years. Earlier people used to purchase vegetables from the street

vendor. Now they want to purchase them from stores like Safal, Reliance Fresh,

Spencer’s, Food Bazaar etc. So the number of consumers who purchase from the

organised retail stores has gone up. But at the same time the competition to attract these

customers has also gone up due to increased number of players in organised retail.

b) Type of Customers

The customers who purchase from Safal booths have also changed over a period of time.

When Safal was started, it was the only store where fruits and vegetables were sold. It

was unique of its kind. At that time, it was considered status symbol to purchase

vegetables from the Safal booths. Later on, other stores like Reliance Fresh, Spencer’s,

Food Bazaar etc. also came up. Safal somehow failed to maintain its image of premium

store and others successfully established their brands as premium ones. Naturally the

upper class and higher middle class consumers has shifted to other stores. Now the

consumers of Safal mainly include the middle class consumers. So the type of consumers

has also changed for Safal in the years that have passed.

c) Consumer Tastes and Preferences

Consumer tastes and preferences have also changed over the years. Earlier consumers

wanted only seasonal varieties of fruits and vegetables. Now there is a growing demand

for hybrid varieties that are available throughout the year. Similarly there is a growing

demand for exotic varieties of fruits also. The consumers also want an attractive store

14

where they can find a good ambience to shop. So the consumer tastes and preferences

have also changed.

6.1.2. Farmers

Mother Dairy has established farmers’ associations in 17 states from whom it procures

fruits and vegetables. When the organisation was established the farmers supplied their

produce happily to Mother Dairy F&V Unit as it offered better prices to them when

compared to what they used to get in the mandis. Now the situation has changed a bit.

Now there are other players also who are ready to take the produce from them. They are

even offering prices to them that are higher than those offered by Mother Dairy F&V

Unit. This has affected the loyalty of the farmers to a certain extent. Now the organisation

has to compete vigorously with other players to ensure constant and uninterrupted supply.

There are other factors also which has affected the loyalty of the farmers towards Mother

Dairy F&V Unit. The payment terms of organisation are also a cause of worry. In Mother

Dairy F&V Unit, payment is generally made 15 days after the procurement is made. In

case of other players the payment is made immediately when the procurement is done.

These factors have led to shifting allegiance of the farmers to a certain extent.

6.1.3. Concessionaires

Concessionaires are also important constituents of the specific environment of Mother

Dairy F&V Unit. They are ex-defence personnel. They have to submit an initial deposit of

Rs. 150000. All the other expenses are borne by Mother Dairy F&V Unit. They get a

commission of 10% on all the sales. The concessionaires are generally facing two

problems. First, the organisation forces them at times to put certain products on their

shelves as a part of their push strategy. Secondly, the expired products are not taken back

by the company. So the concessionaires have to bear the burden of expired products. A

recent issue that came up with regards to concessionaires was that the management asked

the concessionaires to give discounts on certain products. They were told that they will be

reimbursed the amount that they discount later on. The concessionaires followed the

directions and they gave discounts. But when they asked for reimbursement, there were

several issues raised by Mother Dairy F&V Unit. As a result, the concessionaires had to

15

wait for almost a month to get the reimbursement. Such kind of practices has led to

dissatisfaction among the concessionaires. In the year 2008-09, 12 concessionaires have

left the organisation. So a need is being felt in the organisation to manage its relations

with the concessionaires effectively.

6.1.4. Competitors

The competitors of Mother Dairy F&V Unit have increased in number over the years.

The major competitors are Reliance Fresh, Subhiksha, Food Bazaar, Spencer’s and Big

Apple. Out of these Reliance Fresh has emerged as the major competitor of Mother Dairy

F&V Unit both in back-end and front-end operations. It has been procuring fruits and

vegetables from the same farmers from whom Mother Dairy F&V Unit procures. It has

got maximum number of retail outlets in the country as of now. Its attractive payment

term has helped it to attract the farmers towards it. Others are also competing vigorously

to carve a niche for themselves in fruits and vegetables retailing.

6.2. General Environment

In order to analyse the general environment the PEST analysis framework can be used. PEST

stands for political, economic, social and technological influences. These influences are inter-

related.

6.2.1. Political Environment

The government has allowed 51% foreign direct investment for foreign players in retail

business. It has made the entry of various foreign companies into retail business possible.

Mother Dairy F&V Unit has entered into a contract with Wal-Mart for its back-end

operations.

The political environment also includes various legislations like Consumer Protection

Act, 1986 which provide protection to the consumers. This has led to the shift from

“Caveat Emptor” (Let the buyer beware) to “Caveat Venditor” (Let the seller beware).

16

This has led to increased caution on the part of the companies. Mother Dairy F&V Unit is

no exception to it. There are more stringent norms of quality being followed here to

ensure good quality products to the consumers.

So far as the procurement operations of Mother Dairy F&V Unit are concerned, they are

governed by APMC Acts. There are certain regulations which are related to

environmental safety, employee health protection and competition protection. The main

legislation governing competition in India is the Competition Act, 2002 which repealed

the Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 and provided for a

modern framework of competition protection. Then there are labour laws which protect

the interests of the workers in Mother Dairy F&V Unit.

6.2.2. Economic Environment

Economic environment in terms of income distribution and levels of savings and credit

availability plays an important role in determining the demand of consumer goods. India

at present is a trillion-dollar market out of which a fifth of demand is for rice, potatoes

and such other agricultural goods. The findings from latest study by McKinsey Global

Institute (MGI) reveal that India with its current growth rate will undergo a major

transformation. Its income levels will almost triple and its average real household income

will grow from 113,744 Indian rupees in 2008-09 to 318,896 Indian rupees by 2025. It

says that by 2025 there will be 400 millions Indian city dwellers that belong to the middle

class with annual income in the range 2-10 lakhs per annum. This is of critical importance

knowing that this will increase the demand for fruits, vegetables and other agricultural

goods.

6.2.3. Social Environment

Earlier the Indian households preferred to buy fruits and vegetables from the street

vendor. But now there is a sea change in the mindset. People visit retail outlets of

organised sector to purchase fruits and vegetables. This has positively affected the sales of

the organisation. So the social environment is also changing favourably for Mother Dairy

F&V Unit.

17

6.2.4. Technological Environment

The farmers are still using primitive techniques of production due to lack of capital and

consolidated land. This results in low productivity.

When Mother Dairy F&V Unit was established, there was high level of mechanisation at

the central distribution facility. There were imported machines for sorting, grading and

other tasks. However these have gradually become out of use. The employees say that

these machines were not suitable for Indian crops and there was a lot of wastage due to

them. The processing plant of Mother Dairy F&V Unit is equipped with state of the art

technology. The freezing and ripening chambers are also equipped with modern

technology. The quality control techniques used at Mother Dairy F&V Unit use latest

technology. So, modern technology is very much in use at Mother Dairy F&V Unit.

6.3. Environmental Uncertainty

Environmental uncertainty for an organisation is dependent on two parameters:

a) Simple-Complex Dimension

b) Stable-Unstable Dimension

The simple-complex dimension refers to the heterogeneity, or the number and dissimilarity of

external elements relevant to an organisation. The stable-unstable dimension refers to whether

the elements in the external environment are dynamic or not.

Robert Duncan has given the following framework for determining uncertainty for an

organisation:

Stable

Environment

Simple + Stable= Low

Uncertainty

Complex + Stable= Moderate

Uncertainty

Small number of similar

elements.

Elements change very slowly.

Large number of dissimilar

elements.

Elements change very slowly.

Unstable Simple + Unstable= High- Complex + Unstable= High

18

Environment

Moderate Uncertainty Uncertainty

Small number of similar

elements.

Frequently changing elements.

Large number of dissimilar

elements.

Frequently changing elements.

Simple Environment Complex Environment

With respect to Mother Dairy F&V Unit, the environment can be said to be complex and

unstable. So it has got high uncertainty. The environment of Mother Dairy F&V Unit is

complex because there are many external elements. There are many competitors. Then there

are concessionaires and consumers. There are various government agencies also which are

concerned with retailing and food business.

The environment is stable because there are no frequent changes in the elements of external

environment. Demand for fruits and vegetables changes seasonally and there are rapid price

fluctuations. The produce depends on a number of factors including rainfall which remains

highly unpredictable. There are new players coming into this business constantly.

So the environment of Mother Dairy F&V Unit is both complex and unstable and thus, it has

high uncertainty.

6.4. Boundary Spanning

Boundary spanning roles link an organisation with key elements in the external environment.

It is primarily concerned with the exchange of information with the external environment.

Business intelligence is a part of boundary spanning which involves gathering and analysing

internal and external data. In Mother Dairy F&V Unit, the boundary spanning roles are

performed by Sales Department and MIS (Marketing Information Systems) department. Sales

department acts as a link between the organisation and, the concessionaires and the

consumers. The MIS department collects information about demand and prices, and analyzes

them. This helps in keeping the prices and supply of the organisation in tune with the market

conditions.

7. MCKINSEY’S 7S FRAMEWORK

19

The 7S framework describes the seven interdependent elements that constitute the organisation

and are vital for its success. These seven elements have been categorised into hard and soft

elements. Hard elements are those that are easier to define and identify. The three hard elements

are –strategy, structure and systems. Soft elements are those that are less tangible in nature. The

four soft elements are- shared values, skills, style and staff.

7.1. Shared Values

The shared values of the organisation are best described in the mission and vision statement

of the organisation-:

7.1.1. Mission Statement

To provide guidance to farmers and producers on new crops and varieties, post

harvest practices and technological advancements, to improve the yield and quality of

their produce. Also, shall provide them remunerative prices for their produce, which

shall improve their lifestyle/standard of living.

To create a congenial work environment for the employees by imparting training,

recognizing innovation and creativity, encouraging involvement and sense of

belonging and providing better opportunities for their advancement in life and service

career.

To effectively harness all available resources to maintain green, eco friendly

environment.

7.1.2. Vision Statement

To provide quality produce, products and services to the entire satisfaction of

customers

To improve quality of life of farmers and producers by providing guidance for:

Improving yield and quality of produce

Identifying superior varieties

Adopting better agricultural practices

Expanding market

Ensuring remunerative price for their produce.

20

7.2. Structure

The organisation structure refers to the grouping of the individuals into departments and

teams and the grouping of these departments and teams to form the organisation. The various

aspects pertaining to the structure of Mother Dairy F&V Unit are as under-:

7.2.1. Functional Structure

The structure of Mother Dairy F&V Unit is a functional one. The activities and the

departments are grouped together by common function from the bottom to the top of the

organisation. There is a Board of Directors of Mother Dairy Fruit and Vegetable Private

Limited which remains on the top. Then there is the Managing Director of MDFVL in the

hierarchy. He is followed by the two General Managers.

Figure 3

Organisational Structure of Mother Dairy F&V Unit

21

There are nine departments which have been organised on functional basis. All the human

resource related functions are done by the HR and Administration department. Similarly,

maintenance and estate department takes care of housekeeping and maintenance.

However, there is an anomaly in the structure of Mother Dairy F&V Unit. The Marketing

Information Systems department has been put under the GM, Supply Chain and

Manufacturing Verticals (SCMV) while in a functional structure ideally it should have

been under GM (Marketing).

7.2.2. Mintzberg Model:

When the organization is analyzed using the Mintzberg model, the basic parts that

constitute the organization are operating core, strategic apex, middle line and

technostructure. The operating core includes the sales executive, procurement executive,

helpers and assistants in Operations department. The core functions of the organization

being procurement, processing and sales and distribution of F&V, these employees

perform the core functions of the organization. The strategic apex comprises the General

Manager (Marketing), General Manager (SCMV) and the Chief Executive Officer of the

organization. The middle line comprises those managers who sit in a direct line of formal

authority between the people of strategic apex and of the operating core. The coordinators

22

Board of Directors

M.D.

CEO

GM SCMV

Dept. Head Procurement

Dept. Head Information &

Technology

Dept. Head MIS & Planning

Dept. Head Maintenance &

Estate

Dept. Head HR &Administration

Dept. Head Finanace & Accounts

Dept. Head Operations

GM Marketing

DGM Marketing

constitute the middle line in the organization. The technostructure consists of those

analysts, out of the formal line structure, who apply analytical techniques to the design

and maintenance of the structure and to the adaptation of the organization to its

environment. In this organization, work schedulers in HR department, long range planners

in Marketing and MIS department and the executives of Quality Assurance department

constitute the technostructure. The support staff includes those groups that provide

indirect support to the rest of the organization. In this organization, the house keeping

staff, the security staff and administrative staff are included in the support staff.

Routine operating tasks are performed in the organization. All the processes are expected

to be carried out in accordance with the procedure laid down. The tasks are carried out by

workers who are highly specialized having carried out the work for over a long period of

time. All activities are updated in the enterprise resource planning (ERP) system and

hence they are standardized. Details of the activities starting from the arrival of produce at

arrival dock till they are sent out from the dispatch dock after being processed in the

processing hall are updated in the ERP system. The administrative structure is very

elaborate with three levels in unionized cadre along with three more sub levels within

each level. There is a sharp distinction between line and staff as the organization depends

above all on standardization of work processes for coordination. Even the administrative

and processing buildings are situated separately. The technostructure, which houses many

analysts who do the standardizing, emerged as the key part of the structure. Consequently,

these analysts have developed some informal power, with the result that the organization

can be described as having limited horizontal decentralization. The analysts gained their

power largely at the expense of the operators, whose work they formalize to a high

degree, and of the first line managers, who would otherwise supervise the operators

directly. But the emphasis on standardization extends well above the operating core, and

with it follows the analysts influence. Rules and regulations permeate the entire structure.

Formal communication is favoured at all levels. Decision making tends to follow the

formal chain of authority. Only at the strategic apex are the different functional

responsibilities brought together and hence all the major decisions are made at the

strategic apex level. The information accessed through ERP system is restricted on the

23

basis of the functional division. No department is able to access the information of other

department. The technical systems which help the information flow across all departments

are restricted. Hence, the centralization of the authority and control is prevalent in the

organization. These features and characteristics of the organization make it a machine

bureaucracy. The machine bureaucracy is typically associated with the environment that

is both simple and stable. Safal was the only player in the retailing of F&V. With new

players coming up in the F&V retail industry, the environment is changing to be more

complex and dynamic. The organization is responding to the changes in the environment

with bringing in modern technical systems. But the typical machine bureaucracy

identified with regulating the technical systems. The access of ERP system in the

organization being regulated on the basis of the functional basis is a clear example.

24

C & F Agent

Carrying and Forwarding agent act on behalf of the company. Hiring a C & Fagent is like setting up a company depot which is handled by the agent. Goods aretransported to agent’s warehouse and from there they are dispatched to all thedistributors. All the billing is done by the agent but on behalf of the company.

C&F agent has the responsibility of all the logistics from the manufacturer till it these agents do not contact the distributors. This is done by the company. All thepayments are collected by distributors and claimed settled by the C&F agent.

C&F agents are given all expenses incurred by them. For example, staff salary, transportation claims etc. C&F agents charge service charges from the company in lieu of providing all these services. It is either on percentage margin of the business done or as fixed service charges. Mostly these service charges are fixed in nature, for example, Rs25000/month.

The claims of expenses can be settled in two ways by the agent. Firstly, these claimed can be deposited directly to the company without getting the agent in between and secondly, by claiming it through the agent. The claims are thus deposited with the agent and they send the same to the company for clearance.

25

Super Stockiest

Super stockiest are the middlemen who buy in large amount from the manufacturer and then sell them to distributors. These distributors are hired by the company only and not by the super stockiest, generally. Super stockiest is responsible to market the product to these distributors and all the expenses related to the job are paid by the stockiest only. Super stockiest cover all its expenses and profit in the margin of the product. That’s why they generally have high margins then distributors and retailers.

Billing and other paper work is done on the name of super stockiest and not on company’s name.

The biggest benefit of super stockiest is to those companies do not have to deal with the distributor.

Super stockiest can lead to undercutting in the market very easily by maintaining their expanses to the minimum which can be harmful for the company.

26

Role of Distributor

The role of distributors is not only to make the Safal products available to the customers but they

will perform several other roles and functions as well for Safal unit. Some of those roles are

identified us and are summarized below:

Promotion

Promotion/marketing of the products in their territory is one of the most important functions of

the distributor. Many distributors use sales incentive programs to increase the customer traffic.

Mostly these sales incentive programs are provided by the company itself.

Financing

Distributor finance manufacturers operations by providing the necessary workingcapital in the

form of advance payments for goods. These payments are done evenbefore the products are

bought, consumed and paid for by the ultimate consumer.

Title

Distributor takes the title of the goods and trades them. This helps in diffusing therisks between

the manufacturer and distributor. This also enables distributor to bein physical possession of the

goods, which in turn enable them to meetcustomerdemand at the very moment it arises.

27

Price Stability

Price stability can be maintained by distributor in order to absorb an increase in the price of the

products and continue to charge the customer the same old price. This is because of the inter-

middlemen competition. This can be done by the distributor by keeping their overheads low.

Information

Distributors play a major role in providing information about the market for our products.

Developments like changes in customer demography, media habits, entry of new competitors or

a new brand and changes in customer preferences are some of the information that we need from

our distributors. Since distributors are present in the market-place and they are closer to the

customer, they can provide these information’s at no additional cost.

The definition of a channel partner thus can be viewed from five different perspectives or

marketing flows presented as below:

‘

Fig. VI - Physical Flow of goods

28

Manufacturer (Safal) Transporters and company

Manufacturer (Safal)

Customers Retailers Transporters

Fig. VII – Title Flow of Goods.

Fig. VII – Title Flow of Goods.

Fig. VII –Title Flow of Goods.

29

Manufacture (Safal)

Distributors Retailers Customers

Manufacture (Safal)

Distributors Retailers Customers

Manufacture (Safal)

Distributors

RetailersCustomers

WORKING OF A DISTRIBUTOR

The distribution of products is important for a company. Correct channel strategies are widely used by the company. The working of distributors is essential to understand. These are as follows:-

Transportation of product

The products are manufactured at the Safal plant and are transported to the Distributors by Safal.

The goods are unloaded at distributor’s warehouse and after that it is the sole responsibility of the distributor to take care of the product.

Selling of the product to the retailers

Distributor hires salesman who will market the good in the area. The number of salesman will depend on the area that needed to be covered and the nature of good. Generally, the company will specify the number of salesman that they think will be needed in the market but a distributor can appoint on their own judgment and experience.

Each salesman is given a part of the total area allocated to the distributor and their duty is to cater only to that particular area.Their job involves them to find all the prospective retailers that can keep our product and to convince them to buy from us. Their main job is to increase the sales of the good in the market.

Each salesman will take orders from their areas and then deliver those goods as soon as possible or when required by the retailer. They need to maintain the continuity of the service in the market and to see that all retailers maintain our stock.

It is important to maintain healthy relationship with the retailer by salesman, so that they will not shift easily to their competitors.

The movement of goods from the distributor to retailer is responsibility of the distributor.

Distributor has the job of collecting any information that they can related to the goods and the company, from retailers and customers.

Any customer complain, expiry of goods, damaged goods etc. hasto be taken care by the distributor and collect the same from retailer. They can make a claim of the same with the company.

It is also the duty of distributor to pass all the primary or secondaryschemes to the retailer.

Working of distributor as studied by us is as explained above but as a distributor is an independent member of the market and the working may vary according to distributors.

30

Terms and Responsibilities of Distributors

Commercial policy of manufacturer often lays down the terms and conditions and responsibility

for the distributors. Generally these include price policy, mode or terms of payments, returns

policy, territorial rights etc. These are explained as below:

Price Policy

This sets out the price at which the distributor will get the product from Safal and the discount

schedule. It also mentions the price at which distributor may sell the product. Generally, the

company is required by law to stipulate the maximum retail price (MRP). The exact price at

which the product is available to the consumer may change but it cannot exceed the maximum

retail price stipulated by Safal. The actual price may vary from MRP due to trade discounts,

scheme offered by Safal/Distributor/Retailer etc.

Payment Terms

These include the stipulations related to mode and terms of payment. For example, Safal accept

payment only in form of Cheque or Demand Draft, No cash is accepted. It also related to the

credit policy of the company.

31

Return policy

This indicates the warranty that Safal extends to the Distributor. Some firms offer spot

replacement and other takes time to settle them. Return policy should be laid down to avoid

conflicts between the two parties.

Territorial rights

Territorial jurisdiction of each of the distributors should be spelled out to avoid any territory

jumping. This will also be helpful in distributor’s evaluation. Safal has the policy of indicating

the area which each distributor will market and if any distributor jumps in other distributor’s area

then Safal can take actions against that distributor which may result in termination of contract.

Mutual Services and Responsibilities

These services and responsibilities can be promotional inputs, training, quality control, and other

administrative support. These services may strengthen the bond between distributor and the

manufacturer.

All these terms and conditions will be later discussed under the head “Terms and Conditions for

Safal Agency”.

32

UNDERCUTTING

Undercutting is the process which occurs in the market place to push the product into the market place.

Process

The distributor gives the product to the wholesaler at a discounted rate known as cash discount. Wholesaler’s buy in bulk from the distributors and this discount is further transferred to the retailers. For example, let’s say that the distributor will get the product with a margin of 5% and retailer will get a margin of 15%. But retailer’s buys in small lots and distributor may keep stock worth in lakhs at a point of time. Wholesaler approach distributors and offer to buy in bulk for extra margins. A distributor may pass 17% margin and keep only 3% for themselves. It is done to clear stock faster. Wholesaler then passes the same goods at 16% margin to the retailers which are 1% more than they can get from a distributor.

This is done to increase the sales of product and push it into the market as the product is purchased in bulk and sold in the market.

Disadvantages

It may be disadvantageous for the distributor as he has to give some of themargins. But still he earns on the bulk trade and saves the transportation cost to deliver same goods to retailers and the go down cost.

It may also be disadvantageous for the company as retailers in some areas may sell the products at low prices than other areas and that would hamper the brand image of the company,

Sometimes companies deliberately take this step and create undercutting in market to push their product in the market. As retailer will earn more on the same MRP, they are interested to sell as much as they can. This can be done by giving the distributors high targets, so that in order to achieve that target they will sell on lower margins to wholesalers or any other way. Company like Fair and Lovely have earned a huge market share by this process at a point of time.

33

PRODUCT PORTFOLIO OF SAFAL

Theproductportfoliosof Safal include severity of products. Abrief understanding about these

products is essential to market the products.

JUICES-Under the fruit drinks the first segmentation is between real fruitdrinks and

synthetic drinks.

The real fruit drinks are based on natural fruit pulp or juice.

The synthetic drinks are synthetic products with fruit or other flavors.

Broad taste preferences could be another way to define the market. The marketis at

present also segmented on the basis of fruit pulp content. For the purposeof

segmentation, on the basis of fruit pulp content. For the purpose ofsegmentation, on

the basis of fruit pulp content, market can be segmented as:

1 Fruit juice with pulp content more than 80%, Brands falling in this category are Onjus,

Real, Tropicana (100% juice) etc.

Our juices boast of a quality manufacturing procedure and packaging. Variants of juices are

listed in the table. The juices are made from fresh fruits. Our juices are made by reconstituting

the juice concentrate which amounts for 85% pulp, Sugar, Natural identical colors and flavors are

added. Our juices do not contain preservatives. The preservative action is because of ascorbic

acid. It is also ideal for the foodservice establishments as it requires minimal storage space, them

to cater for large functions.

34

2. Fruit Nectar- with pulp content from 40% to 80%. Life and X’s come in this category. Our

nectars are made by reconstitutuion.They contain nature identical colors and flavoring

substances.

3. RTS - These are ready to serve beverages which have a pulp content which is lower than that

of juices and nectars. Its consumption is aimed at consuming at a particular point of time. It

contains about 10% pulp. This Ready-To-Drink variant offers an option to retail operations

catering to customers looking for healthy, thirst quenching single serve options. The well-

designed packaging ensures that it stands out whether it be displayed in normal shelves or walk-

in chillers. Our RTS has about 13% pulp of the fruit it is made of in addition with the sugar,

acidity regulators and preservatives.

4.KETCHUP - Condiment consisting of a thick, smooth-textured, spicy sauce usually made from

tomatoes. The ketchups can be divided on the basis of thick and thin sauces. A recent launch of

tomato ketchup has taken place with improved packaging and sensory characteristics.

5.JAMS - Fruit jams are fruits, or vegetables, that have been prepared and canned for long term

storage. The preparation of fruit preserves traditionally involves the use of pectin as a gelling

agent, although sugar or honey may be

6.SQUASH - These belong to the synthetic beverage category. These are available in different

flavors and contain a high amount of sugar.

7. PUREES-These are majorly aimed for in home consumption and contain tomatoes.

8.PICKLES- They are available in wide flavors. Our pickles are made from fresh quality fruits and vegetables with condiments, oil and salt.

35

Catalogue of Safal products:-

S.No. Material no. Product Category Material descriptionMRP(inRs)

1 72000314 Nectars MANGO NECTAR 200ML 152 72000313 MANGO NECTAR 1LTR 703 72000312 GUAVA NECTAR 1LTR 70

4 72000801 GUAVA NECTAR 200ML 15

5 72000811 RTS SAFAL MANGO DRINK 200ML

12

6 72000812 SAFAL LITCHI DRINK 200ML

12

7 72000813 SAFAL PINEAPPLE DRINK 200ML

12

8 72000814 SAFAL GUAVA DRINK 200ML

12

9 72000815 SAFAL PLUM DRINK 200ML

12

10 72000816 SAFAL PEACH DRINK 200ML

12

11 72000315 Juices SAFAL GRAPE JUICE 1LTR

70

12 72000319 SAFAL ORANGE JUICE 1LTR

77

13 72000320 SAFAL ORANGE JUICE 200ML

15

14 72000316 SAFAL MIX FRUIT JUICE 1LTR

77

15 72000317 SAFAL MIX FRUIT JUICE 200ML

15

16 72000330 Squash SAFAL LEMON SQUASH 700ML

70

17 72000332 SAFAL ORANGE SQUASH 700ML

70

18 72000331 SAFAL LITCHI SQUASH 700ML

75

19 72000321 Tomato Ketchup

SAFAL TOMATO KETCHUP IKG

89

20 72000322 SAFAL TOMATO KETCHUP 500GM

50

36

21 72000335 Tomato Puree SAFAL TOMATO PUREE 200.GM

14

22 72000306 Jams SAFAL APPLE JAM 500GM 6023 72000311 SAFAL PINEAPPLE JAM

500GM60

24 72000307 SAFAL MIX FRUIT JAM 200GM

30

25 72000309 SAFAL MIX FRUIT JAM 500GM

65

26 72000310 SAFAL MIX FRUIT JAM IKG

100

27 72000328 Pickles SAFAL RED CHILLI PICKLE 400GM

55

28 72000327 SAFAL MIX PICKLE 400GM

45

29 72000325 SAFAL LIME PICKLE 400GM

45

30 72000326 SAFAL MANGO PICKLE 400GM

45

37

SWOT ANALYSIS of SAFAL

Strengths:

High quality product made by latest technologies and aseptically packaged. Products are available in wide varieties of flavors and are HACCP and ISO certified. Committed, capable and ambitious management, Flexibility in our operations so we can focus our efforts on the tasks.

Weakness:

Our distribution set up initially will be weak when compared to the others in the market. We will not be able to price our product lower than the others in the market as we are

producing a quality product.

Opportunity:

The market is in a growing stage and there are huge chances of growth in the sector. More and more people in the urban areas are getting health conscious and are making fruit

juice a part of their daily diet. Hence the market is growing. The government policies are expected and are showing trends to encourage the food

processing industry.

Threat:

Our competitors are wide such as Dabur& Real and they could harm us by getting aggressive in their promotional activities.

The competitors have strong brand images in the market because of their other businesses and their presence in the market from an early stage.

Indian market has characteristic of serving a wide variety people which is a challenge for all the marketers.

38

Terms and condition for Safal Agency

Margin on Safal products for the distributor will be 5% on markup

The actual margin on Safal products is 5.25% but as VAT is deducted from this margin the absolute margin for the distributor comes out to be 5%

Margin on Safal products for the retailer will be 15%on markup

Rs. 10,000 will be reimbursed to the distributor as the salary of 2 sales persons per month

Rs. 20,000 will be given to the distributor to purchase shelf space from the retailers

Shelf space means that the retailer has to place our products at the shelf on eye level, so that customer can easily view our products as soon as they come to the shop. In short, our products should be easily visible to the customer.

Rs. 25,000 has to be deposited as security, if thedistributor is ready to take the agency of Safal

This security is refundable but it does not carry any interest. The security will be refunded when the distributor leaves our agency or when we leave the agent.

Minimum Rs. 1,00,000 has to be invested as working capital by the distributor

Against this amount stock will be delivered to the distributor, after that distributor can order any amount of stock as per the requirement of the distributor.

Safal gives replacement under the following circumstances:-

1. Expired stock with the distributor.

2. Damaged goods.

3. All consumer complains (attached with the copy of consumer complain)

Safal will not replace good if Rat cuts are found.

All these terms and conditions are discussed with the distributor in preliminary meetings

39

FINDINGS

The survey of retail outlets in the zone 5 that is Anand Vihar yields data about 51 potential distributors. These distributors are working for various FMCG companies. These 37 companies have been broadly classified as follows:

1. Dairy Products

2. Snacks

3. Beverages

4. Ready to Eat

5. Confectionary & Cereal Products

6. Ketchups, Jams & Pickles

7. Other

In a particular category following companies have been included. These are as follows

1. Dairy Products

Distributor working for companies like Amul and Paras Ghee were interested inour proposal. Mother Dairy distributors did not show any interest.

2. Snacks

Distributors catering to snacks companies were interested in our proposal likeHaldirams Frito lays,Bikano and AC II. Piknik and Nissin did not show any interest.

3. Beverages

In the beverage category there are strong competitors of Safal so they were not interested in our proposal. Only Bisleri and Tata tea had a word with us.

40

4. Ready to Eat

Distributors catering to ready to eat products were not interested.

5. Confectionary & cereal products

This category includes a wide range of products ranging from biscuits to bread,rice to breakfast cereal. This category showed a wide interest in our products, Ahaa,Jagat Rice, Dawat Rice, Britannia, Perfetti, Bonn and Rajdhani were interested in our proposal.

6. Ketchup, jams & Pickles

This category caters to companies who are our competitors, hence no company wasinterested.

7. Others

Companies interested under this category are Sundrop Oil and Everest Masala.

Inference- The inference which can be drawn is that the distributors working for the FMCG sector are not equally interested in the distribution of processed foods.A variation lies between distributors working for different companies, distributors catering to Confectionary and cereal products are the most interested as they get to cater to a different product line completely with no competitors,moreover the companies working in this category are not big companies so they are interested as this would give them an opportunity to expand their business.

Distributors catering to the snacks category are the next interested.This maybe because of no competition in the category.

The percentage catering to others and Milk Products are equally interestedthat is 13% each.

Distributors of Beverages and Tomatoketchups,jams and pickles are leastinterested because of the competitors they are working for. It includescompetitors such as Kissan,Dabur.

Other findings from the survey of distributors are as follows:

41

1. The finding reveals that distributors are mostly working with two or more companies. Only 20% distributors worked with single companies such as Babajinamkeen.

Moreover some companies like HUL have only 6 distributors catering to whole of Delhi.Some companies like Haldiram have different set of distributors for different types of products.

2. Only 5% distributors sign a formal agreement with the company prior to taking thedistribution ship of the company. There is no formal deal between the distributors and the company.

42

Competitors Schemes and Margins

Category Brand Margins Customer Retailers

Schemes Schemes

Real 15% 3% extra

margin on

target sales

Tropicana 15% Free Glass with 3% extra

Juices every pack margin on

target sales

Saint 15% Buy 2, Get 1 Free

Onjus 20%

Tops 20%

Pickles Mother’s Recipe 37.5%

Nillons 15%

Maggie 10% Trade discount

of 6%

Ketchup Heinz 10%

Tops 12-13%

Del Monte 12-13%

Kissan 10%

Tomato Puree Dawar 10%

Kissan 10%

Squash Mapro 12%

Haldiram 10%

43

Findings from the study of margins and customer schemes:

Tropicana provides a higher margin to the retailer than the normalmargins of other companies. On surveying it was found that they are notselling 100% juice at that price. They are selling ready to serve beveragewhich has much lower pulp content than that of juices.

The squash market is shrinking with only few players such as Kissan left in competition. Some other players are Mapro.

Consumer scheme are only available with Onjus and Tropicana juice in the market. As we have launched our products with consumer schemes like free bottle with a juice pack and ketchup dispenser with each ketchup bottle, it will be able to attract more customers.

Recent launches in the ketchup category are that of Del Monte sauces .These are easy flowing and have pieces of fruit and vegetables in it.

44

DATA ANALYSIS AND INTERPRETATION

1. Are you aware about the schemes running on Safal Products :-

a) Yes b) No0

20406080

100120140160180

82.5 percent customers aware about the scheme on Safal Product.

2. If yes, through which medium did you come to know about the schemes?

a) Th

rough

Safal

Outle

t Owner

b) Disp

lay PoP at

Booths (Ban

ner, Poste

r, etc.

)

c) New

spap

er lea

flets

d) SMS

e) W

ord of m

outh

f) Others

…0

20

40

60

80

42.5 per cent customers know about the schemes by SMS.

45

3. Did you avail the scheme on Safal Juices/ Nectar 1 litre ?

a) Yes b) No0

20

40

60

80

100

120

140

66.5 per cent cost customers was not avail about the safal Juices/ Nectar.

4. If No, then what is the reason?

a) Price b) Quality c) Better Schemes of Competitors

(Specify)

d) Any Other (Specify)

0

20

40

60

80

100

120

Price is main factor about the not avail theSafal Juices/Netar. Because 52.5 per cent customers said price is very high .

46

5. Did you avail the scheme on Safal Frozen Peas 500g/1kg?

a) Yes (please specify size) b) No0

20

40

60

80

100

120

140

160

180

80 per cent customers said not about the Scheme on Safal frozen peas 500/1kg

6. If no, then what is the reason?

0

20

40

60

80

100

120

Reason behind ,55 percentcustomers saysbetter scheme not avilable and 25 percent says price is high.

47

7. Did you try theNew& Improved Safal Tomato Ketchup 500g/ 1kg launched recently?

a) Yes (please specify size) b) No0

20

40

60

80

100

120

140

160

180

85 per cent customers said no and only 15 percent customerssaid yes.

8. If no, then what is the reason?

a) Pric

e

b) Quali

ty

c) Bett

er Sch

emes

of Competi

tors (Sp

ecify)

d) Any O

ther (Sp

ecify)

020406080

100120140

62.5 percent customers says price is main reason.

48

9. If yes, please give your feedback on following parameters vis-à-vis Old Safal Tomato Ketchup:-

a)Quality & Taste b)Packaging c)Price d)Scheme0

20

40

60

80

100

120

140

160

Poor

No Change

Better

In safal Tomato Ketchup given parameters customers wants to change 75 percent price , 62.5 percent customers wants schemes and 50 percent customers wants to change in quality & taste.

49

CONCLUSION

Distribution is an important part of the marketing mix. Channel creation needs to be done for the proper availability of goods with the retailers and hence the consumers. The effectiveness of distribution coverage is very important. Understanding of the distribution coverage is important for the manufacturer to plan and implement effective distribution strategy. Channel Strategy includes recommendations for both identifying and managing channel partners. Many companies are not getting the sales growth, market penetration and customer share they should because of ineffective channel design and deployment. For proper marketing of the products we need distributors who have a proper knowledge of the market and can aid in the proper distribution and downward communication to the retailers and this information can be used by the company to improve the products.

But it is seen that it is a herculean task to appoint good distributors for thecompany. The reasons can be following:

The availability of capital with the distributor is another important consideration. As the investment involved can vary from 5lakh/month to 201akh/month, distributor needs to see if they can arrange such kind of capital for the new proposal.

Negotiations from distributor’s side can produce some hindrance as well. It may not be in companies hand to fulfill all the requirement of the distributor and hence, not reach to an acceptance.

A distributor is not interested by the proposal we have presented in front ofthem. Distributor needs to check if whether the new proposal can be handledby them and if it will prove beneficial for them or not.

We should not go in for distributors working with the companies of our competing brands as it would only lead to time wastage as they would not be interested to distribute our product.

50

The following can also be concluded:

In a FMCG industry dealing with processed foods and beverages if we need to develop a distribution network we need not consult all the distributors in the processed food segment, rather we should go for distributors dealing in confectionary & cereal products as they are most interested in the distribution as they are not distributing for any of the competitors and hence would put in full efforts for the distribution to take place efficiently. They also get a different product line to cater and can gain from the market experience achieved by marketing a new product.

It can be concluded that the manufacturer force acceptance of the goods with advertising, high markup offers, free merchandise, combination schemes. These allow initial acceptance of the product by the Distributors.

The middleman is interested in selling any product which his customers desire to buy from him. The attractiveness is not to be judged by markup, offering advertising and the product but rather it is that whether it would fit the line or not.

Thus, we can say that the distributor has gained an important position in the market.

51

RECOMMENDATIONS

The following are the recommendations which Safal should adopt

Salary reimbursement that our company provides is same for each zone; it should be re-distributed according to different zones so that they can be justifiable for different areas.

Safal should also consider distributors who are currently working with Safal and Mother Dairy. They are working for different units but they can be easily contacted and as they are already associated with our company, they might be interested in expanding their business. Currently such distributors are the distributors of Safal Peas and Mother Diary Ice-cream and Curd.

Safal can provide services like van subsidies, godown charges to the distributor so that they are lured to work with the company.

Safal can provide the products to the distributor on credit basis as most distributors are willing to work on credit basis only.

There can be changes in the price policy

Safal can provide a running product with the products we are offering like Safal peas to boost up the sales. Product assortment can be done.

Safal can go in for aggressive promotions and advertising to make a presence in the market.

Instead of going for a single distributor in the given Zone, Safal can appoint more than one distributor so as to cater to whole of the area.

52

Questoinnare.To know consumer satisfaction towards the safal juice in delhi Ncr.

Date :- Q.NO.:-12

Centre:- Delhi city

Dear Sir/Madam

I am doing a brief survey to find out about consumer satisfaction toward Safal juice brand in delhi city as per a part of my project.So,I am requesting you to kindly cooperate with me in filling the questionnaire.I am assuring you that information provided by you will be academic purpose only.

Name:- Contact no.:-

Address:- Qualification:-

1) Gender of respondents A)Male B) Female

2) Your age group A)Below 18 B)18-25 C)Above 25

3) Which type of fruit juice brand you are aware mostly?A) Tropicano B) Real C) Safal D) Other

4) Through which medium you come to know about your preferrd fruit drink?A) Hording and banners B) News paper and magazinesC) TV/Radio D) Any other

5) For Whom do you buy fruit drink?

A) My self B) Family

C) Children C) Social occasion

6)What quantity do you usually prefer to buy?

A) 200-500 ml B) 300

53

C) 500 ml D)1 ltr.

7) Which is your preferred channel for purchasing fruit drink?

A) Retail store/grocery store B) super market/hyper market

C) Restaurent D) other

8) Does advertising and promotion influence your purchasing decision?

A) yes B) no

9) Which flavor you like most?

A) mango B) apple C) litchi D) mixed

E) lemon F) grapes G) orange H) pineapple

10) upto how much price can you pay for a litre of juice?

A) upto to rs.-60 B) 61-65 C) 66-70 D) 71-75

E) more than 75

11) Does trade offer influence your purchasing decision?

A) yes B) no

12) Would you like to give any suggestion regarding the Safal fruit juice brand?

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………..Thank you

54

Bibliography

ARUN KUMAR AND N MEENAKSHI, 2006. Marketing management.

PHILIP KOTLER, KEVIN LANE KELLER, ABRAHAM KOSHY AND MITMLESHWAR JHA, 2009. Marketing Management

LAMB AND DANIEL ANDHAIR. Marketing Management

www.fnbnews.com

www.google.com

www.Financialexpress.com

55