Study of Parameters Involved in Distribution Channel and Promotions Regarding New Product LaunchIn partial fulfillment of the requirements for the award of the Post Graduation Diploma in Management in Marketing and Finance Summer Internship Project Report Submitted by Under the guidance of Academic Year 2011-13 INTERNATIONAL SCHOOL OF BUSINESS AND MEDIA Nande Campus, Pune. International School of Business & Media, Pune 1 INTERNATIONAL SCHOOL OF BUSINESS AND MEDIA Nande Campus, Pune. CERTIFICATE This is to certify that this project entitled “ STUDY OF PARAMETERS INVOLVED IN DISTRIBUTION” was done by “” who carried out the project work as a summer internship under my supervision for partial fulfillment of the requirements for the award of the degree of Post Graduation Diploma in Management in Marketing & Finance at International School of Business & Media, Nande Campus, Pune. Date: SIGNATURE Reporting Officer International School of Business & Media, Pune 2 INTERNATIONAL SCHOOL OF BUSINESS AND MEDIA Nande Campus, Pune. ACKNOWLEDGEMENT It is my great pleasure in taking this opportunity to express my sincere thanks and deep sense of gratitude towards my honorable and respected guide Mr. who has given us valuable guidance constructive criticism, kind advice and constant encouragement for making this project a success. I take this opportunity to thank, for being the wonderful guidance light and a source of inspiration throughout the project. I would also like to thank Mr., Owner, Sai Agency for taking necessary steps required for completion of this project. ISB&M, Pune (Nande) International School of Business & Media, Pune 3 INTERNATIONAL SCHOOL OF BUSINESS AND MEDIA Nande Campus, Pune. DECLEARATION I, “” hereby declare that the project report entitled “ STUDY OF PARAMETERS INVOLVED IN DISTRIBUTION” is an original and practical work. The content of project report has not been published before and reflects the work done by me during my summer internship in Pune from 2nd April 2012 to 1st June 2012, under the Post Graduation Diploma in Management in Marketing & Finance at International School of Business & Media, Nande Campus, Pune. ISB&M, Pune (Nande) International School of Business & Media, Pune 4 Executive Summary The Gujarat Cooperative milk Marketing Federation Ltd, Anand (GCMMF) is the largest food products marketing organization of India. It is the apex organization of the Dairy Cooperatives of Gujarat. Over the last five and a half decades, Dairy Cooperatives in Gujarat have created an economic network that links more than 3.1 million village milk producers with millions of consumers in India. These cooperatives collect on an average 9.4 million liters of milk per day from their producer members, more than 70% of whom are small, marginal farmers and landless laborers and include a sizeable population of tribal folk and people belonging to the scheduled castes. This report analyzes the parameters involved in distribution channel. The report is divided into four parts. The first part gives information about company and then theoretical background on this project topic. The second part mentions the objective, scope and limitations of the project. The third part contains the research methodology and data analysis. In this we will see the characteristics of the population, their size, and how the data is collected. Then in data analysis part will give some inferences from analysis of the data collected, collated; where charts, tables, bar diagram, pie charts will come to make the data more meaningful. In last part of the report covers observations from the data analysis as well as the information collected. Then conclusions are reached on the basis of inferences from data analysis & observations. Finally the recommendations are noted down for further actions as required. International School of Business & Media, Pune 5 ......40 10..................................................................... Pune 6 ........................... Launch of Amul PRO ........................ Introduction...............................................................................................14 5............................ Observation and conclusion ......................................................................... Scope of the project ...............................................................Table of Contents 1.......................... Objective of the study .............................................................................................................................................................................................................................................. Information about the company ........................................................................................................... Research Methodology ..........................7 2............................23 9..17 8.............................................. Recommendation ......................................................... Data Analysis ........................................... Theoretical background of the topic ..................43 11..... Limitation..................9 3..........15 6.......47 International School of Business & Media.......................................................................................................................................................................16 7........................ Bibliography .........................................................................12 4........................................46 12....... and to avoid delays in passing product to customers. GCMMF will plane to implement a SAP module in their organization. to manage mismatches between supply and demand. so this type of process is followed by the company to delivered the product.e. In order to thrive in the era of modern trade. marketing channel decision play a role of strategic importance in the overall presence and success a company enjoys in the marketplace. distribution or supply from manufacturing point to the customer. Hence role of a distributor’s salesman is crucial. The process from manufacturing the goods then deliver goods to carry and forward point then to various distributors and then to retailers and finally to the customer. right time and at the right place is already one of the biggest challenges every company face. company need to deliver a service level that is higher than what the industry is used to and operate a supply chain which is superior to our competitors. The distribution of goods across the country in the right quantity. controlling stock levels within the physical distribution function to balance the need for product availability against the need for minimizing stock holding and handling costs.INTRODUCTION Distribution channels are sets of interdependent organization involved in the process of making a product or service available for use or consumption. So that Gujarat Cooperative Milk Marketing Federation Ltd. who is responsible for secondary International School of Business & Media.e. Whether selling product or services. i. Order booking is very important process of secondary sales which directly affects the primary sale. Inventory management is required at different locations within a facility or within multiple locations of a supply network to protect the regular and planned course of production against the random disturbance of running out of materials or goods. Now parameter involved in distribution channel i. After implementing SAP module they will know about the each and every situation involved in distribution parameters like how much stock a particular distributor have in daily basis or how much order a particular salesman take from market on daily basis. Inventory management is primarily about specifying the size and placement of stocked goods. Holding sufficient level of inventory is very important. Management of the inventories has the primary objective of determining. So that company will know about each and every distributor current status. Pune 7 . to act as a buffer between two operations. sales. Many times distributor doesn’t know about the zero inventory stock and accordingly he forget to place the order for that product or SKU. Pune 8 . GCMMF is also planning to adapt to the technology for order booking and implementation of retail register is their first towards it. So all of these parameters and practices are important for distribution of consumer products in highly competitive market. International School of Business & Media. It is also important maintain a ledger for stock. The Order booking software in palmtops helps to take the order easily without carrying any paper or pen. From which salesman can easily read out the complete product line SKU and also helps him to decide how much order he can take by checking the stock-level at storage point. To improve the outcome of order booking process Companies are adopting to technology. Palmtops are becoming a common practice for salesman. China and Australia. chocolates. cheese. International School of Business & Media. 17 member unions covering 24 districts. and 3. Its product range comprises milk. Its success has not only been emulated in India but serves as a model for rest of the World. For the year 2009-10. GCMMF has received numerous awards and accolades over the years. ghee. It operates through 47 Sales Offices and has a dealer network of 5000 dealers and 10 lakh retailers. Gujarat Cooperative Milk Marketing Federation Ltd. popularly known as 'AMUL'. Gulf Countries. milk powder. GCMMF has been awarded "Golden Trophy' for its outstanding export performance and contribution in dairy sector in India by APEDA. GCMMF is the first and only Indian organisation to win topmost International Dairy Federation Marketing Award for probiotic ice cream launch in 2007. For its consistent adherence to quality. butter. In 2003. and traditional Indian sweets. Pune 9 . (GCMMF). It has been accorded a "Trading House" status. It is exclusive marketing organisation of 'Amul' and 'Sagar' branded products. Japan.18 million milk producer members.Gujarat Cooperative Milk Marketing Federation Ltd.2003 for adopting noteworthy quality management practices for logistics and procurement. Many of our products are available in USA. is India's largest food product marketing organisation with annual turnover (2011-12) US$ 2. customer focus and dependability. which aims to provide remunerative returns to the farmers and also serve the interest of consumers by providing quality products which are good value for money.5 billion. one of the largest such networks in India. In 2002 GCMMF bagged India's Most Respected Company Award instituted by Business World. it was awarded the The IMC Ramkrishna Bajaj National Quality Award . health beverages. Singapore. The Philippines. It is the Apex organisation of the Dairy Cooperatives of Gujarat. Ice-cream. Pizza cheese. etc GCMMF is India's largest exporter of Dairy Products.117 village milk cooperative societies. It received the Rajiv Gandhi National Quality Award in1999 in Best of All Category. GCMMF has received the APEDA Award from Government of India for Excellence in Dairy Product Exports for the last 13 years. Its daily milk procurement is approx 13 million lit (peak period) per day from 16. Paneer. per day Rs. of Producer Members No. Pune 10 . To live.5 Billion) International School of Business & Media. of Village Societies 1973 17 District Cooperative Milk Producers' Unions (15 Members & 2 Nominal Members) 3. It has given farmers the courage to dream. GCMMF Overview Year of Establishment Members No.The Amul brand is not only a product.2011-12) 3. It is in one way. per day 3690 Mts.117 Total Milk handling capacity per 13. the representation of the economic freedom of farmers.18 Million 16. To hope.67 Million litres per day day Milk Collection (Total .88 billion litres Milk collection (Daily Average 2011-12) Milk Drying Capacity Cattle feed manufacturing Capacity Sales Turnover -(2011-12) 10. but also a movement.6 million litres (peak 13 million) 647 Mts. 11668 Crore (US $2. Pune 11 .The ‘Amul’ Model International School of Business & Media. THEORETICAL BACKGROUND Distribution Channel: The chain of businesses or intermediaries through which a good or service passes until it reaches the end consumer. Sometimes. A distribution channel can include wholesalers. FMCG distributor generally has exclusive rights of distributing all products or a set of products in a defined geographical territory. Role of Distributor: An entity that buys noncompeting products or product lines. But now many organizations have started seeing distributors playing much bigger role. and resells them to retailers or direct to the end users or customers. In the given territory. retailers. retail penetration and market coverage. GCMMF Mfg Unit Warehou se Distribut or Retaile r Consum er Inventory Management: Inventory management is the process of efficiently overseeing the constant flow of units into and out of an existing inventory. Traditionally a distributor is treated like a trader in the distribution channel. Pune 12 . distributor is also appointed to serve a particular clientele base like hotels. he will be responsible for the redistribution of the products. Distribution Management: The management of resources and processes used to deliver a product from a production location to the point-of-sale. distributors. canteens. warehouses them. including storage at warehousing locations or delivery to retail distribution points. International School of Business & Media. Distribution management also includes determination of optimal quantities of a product for delivery to particular warehouses or points-of-sale in order to achieve the most efficient delivery to customers. restaurants etc. Distributor provides required financing for allowing credit to the retail market. Distributor maintains stock of the products to absorb the supply fluctuation from manufacturer. Every SKU is assigned a unique identification number.Following are some of the functions a distributor plays in modern FMCG channel. • • Basic role of distributor is to purchase/stock products in bulk from the manufacture and sell/distribute them to retailers in smaller quantity. Distributor expands the retail universe (by opening new outlets) as well as the retail penetration of various products. color. Distributor takes up field level marketing activities like H2H promotions. model) and must be stored and accounted for separate from other items. Distributor takes orders from the retailers and institutions and ensures timely and quality delivery of products. Distributor helps in minimizing consumer complaints and resolving them. inshop promotions. Pune 13 . Stock-out: Stock-out is the situation of having Zero Inventory for a particular product. Receipts: The stock received by the distributor from the Company after placing the order. • • • • • • Stock Keeping Unit (SKU): Warehousing item that is unique because of some characteristic (such as brand. size. International School of Business & Media. Distributor is the person who will provide ground level data on demand estimation for the products. To implement the retail register introduced by the company and to check the result & effect after the implementation.OBEJECTIVES OF THE PROJECT • • • • To find out the performance of the Distributor by observing various things. Pune 14 . International School of Business & Media. To find out the average inventory held by the distributor per day and the average investment by the distributor. To provide useful recommendations for improvement in distributor’s performance. Shrikhand 4. Solapur Road-1 For Inventory Analysis.e.SCOPE OF THE PROJECT Scope determines the boundaries of the project and provides the framework for working. For implementation of retail register. Beverages International School of Business & Media. Scope of the project was as follows : • • • • Hadapsar and surrounding area The Project covered only the Dairy products of Amul.4 Categories of Amul dairy products. Butter 2. 1. Pune 15 . i. I was assigned to Sai Agency from Hadapsar area of Pune city.e. which is responsible for the distribution of Amul products in Hadapsar and surrounding area.only 1 beat. i. Cheese 3. e. Pune 16 . So salesmen felt it quite inconvenient to carry along and this required convincing the salesmen to use the register and bring it in practice. International School of Business & Media. i. • Data for March’ 2012 of secondary sales. to find out the result and effect of implementation of retail register. route wise and retail store wise sales data was not available for comparing with sales data of the months of April & May.LIMITATIONS OF THE PROJECT • • Salesman’s knowledge and understanding of the retail register was a limitation for Implementation of the retails register. Retail register was not completely user friendly as it was a big size register and weighed around 1.5 Kg. Infrastructure at the Distributor : • Storage Capacity: Type Temperature Area -18⁰C Cold 300 sq. • Products Stored : a) In Cold Storage at 18⁰C − Ice-Creams − Paneer b) In Cold Storage at 4⁰C − Butter − Cheese − Shrikhand c) In Dry Storage − Flavored milk − Ghee − Lasse − Buttermilk − Amulya. 4⁰C Cold 200 sq. Pune 17 . Sai Agency distributes Amul’s Dairy as well as Ice-cream products in Hadapsar and the surrounding area.ft.RESEARCH METHODOLOGY Name of the Distributor : Sai Agency. Normal or Dry Ambient 250 sq.ft. Hadapsar. I was assigned to the study at Sai Agency located in Hadapsar area of Pune city. Amulspray − Fresh Cream − DTM Milk International School of Business & Media.ft. 1 Solapur Roda. Big Bazaar. of Salesman: 2 − No.• Other : − No. of retail outlets covered by the Sai Agency = 270 Outlets (Approx. Pune 18 . D’Mart. of Delivery Boys: 2 − No. Hypercity) Weekly Beat Plan for Sai Agency (Small Retails) : Day Monday Tuesday Wednesday Thursday Friday Saturday Beat Solapur Road.) International School of Business & Media.2 Kondhawa-2 Sayyednagar Kondhawa-1 Fatimanagar-Wanwadi Sasanenagar Malwadi Kondhawa-2 Handewadi Kondhawa-1 Fatimanagar-Wanwadi Weekly Frequency Once Once Twice Once Twice Twice Once Once Twice Once Twice Twice Total No. of Vans for Delivery of Products: 2 (TATA Ace) • Distribution to : − Small Retail Outlets − Modern Retail Formats (Reliance Fresh. International School of Business & Media. Pune 19 . Retail register the proper format for order booking for small retail outlets by the salesman. It covers all the list of SKUs under different product categories against which orders can be noted down on respective days for each retail outlet regularly visited by the Salesman.Retail Register This is the Retail Register which GCMMF has introduced for implementation. It also contains images of the SKUs listed in the register. closing stock. receipts.Stock Ledger This is the Stock Ledger introduced by GCMMF for inventory management practice. and sales can be noted down on respective days for available at the distributor’s place. It covers all the list of SKUs under different product categories against which opening stock. International School of Business & Media. Pune 20 . Observing the stock-out situations and also lost orders.e. records of 1 month were taken. The analysis was done for 39 SKUs available at the distributor under the mentioned 4 product categories of dairy products. Cheese. Opening stock of a day was considered as the stock level for that day. For SKUs where stock movement was very low and was majorly in packets. etc. Observing cases where there were delays in landing of stocks at distributor and also in delivery of products from distributor to retailers. if any. Unloading. stock level and sales were recorded in no. as required by the Company. Butter. Handling & Storage. Loading. Sales and Closing Stock on daily basis for all the SKUs available at the distributor. receipts & sales were basically recorded in “No. • Stock level. Pune 21 . Receipts. 1 ½ month by observing Opening Stock. Observing distributor-salesman as well as salesman-retailer relationships to find out the effectiveness of distribution. • • • • Calculation and analysis was done for 4 product categories of Dairy products. of Cases” or boxes as instructed in the stock ledger. For Calculation. Methodologies for collecting Data or information : (A) For finding out the performance of distributor • • • • • Observing all the working processes like Order booking. Knowing about the retailers’ responses to the distribution. at the distributor’s workplace.. Then Average Inventory per day was calculated by summing up stock levels over the 30 days period. (B) For finding out the Average Inventory held and the Average Investment • The Stock Ledger was maintained for a period of approx. i. Delivery. Shrikhand and Beverages. Billing. of packets also. International School of Business & Media. (C) For Implementation of the Retail Register • • • Explaining the need and importance of the Retail Register to the distributor and salesmen involved. Pune 22 . the rate at which distributor receives the stock from the Company. i. was noted down for all the SKUs under study. From the average inventory in volume. The SKUs which got added in order booking in the implementation period were noted down and it was checked if the results can be attributed to the use of Retail Register. calculation was done for finding out the value of average inventory held. • Due to initial high resistance to implementing the Retail Register and time constraint on salesman. the average investment by the distributor in stock.• • • • • Also calculated were total receipts & total sales in the period as well as average receipts & average sales per day. Make the salesman understand the process of order booking in the register in order to overcome the initial resistance and convincing him to accept the changes in the process. for analyzing the cases of stock-outs observed. Explaining to salesman in detail how to use the Retail Register. i. Stock-outs for any SKU observed over the period were recorded in the stock ledger. Then stock levels over the period were plotted on the line charts and were compared with bar diagram of the receipts over the same period. Finally. International School of Business & Media. These effects were shared with the distributor and salesmen for further implementation of Retail Register for rest of the beats. Distributor landing rate. I.e.e. i. “Change Management”. comparison was done between orders for all SKUs in the implementation period and orders in previous few weeks.e. • • • • Recording orders from retailers in the register and helping salesman to bring the register in practice.e. Solapur Road-1. the activity of order booking in the register was carried out on only one beat. Receipts of Stock and Sales for each day of the period. • • Following tables show the records of stock for 30 days from 20th April. Wherever International School of Business & Media. The figures in the table are basically in number of cases (boxes). Pune 23 . 2012 to 19th May.DATA ANALYSIS Data collected from the Stock Ledger was for 39 SKUs from the 4 product categories under study as mentioned below. This includes Opening Stock (OS). unless mentioned. 2012. Sales (pkt). i. in number of packets and not in cases. figures are in number of packets and hence mentioned in the 3rd column. Pune 24 . BLANK PAGE International School of Business & Media.Stock in bracket as.e.the Sales volume for any SKU is low. BLANK PAGE International School of Business & Media. Pune 25 . BLANK PAGE International School of Business & Media. Pune 26 . Pune 27 .BLANK PAGE International School of Business & Media. Pune 28 .Calculation of Average Inventory held in number of cases and Total Value of Average Inventory for all SKUs: International School of Business & Media. inventory for all SKUs together = Rs.307 4) Therefore.93 Cases 3) Total Value of Inventory held over the month = No. 68. after doing the calculations for total 39 SKUs from 4 product categories. We get. Pune 29 . Total volume of per day Average inventory for all SKUs together = 457. 29. • • • • • • • • Volume of Total Inventory held over the month Volume of Average Inventory held per day Value of Total Inventory held over the month Value of Average Inventory held per day Total receipts of stock over the month Average receipts of stock per day Total Sales of stock over the month Average Sales of stock per day For example.13 Cases Likewise. 1. 474 ≈ Rs. 50.70 Cases 7) Total Sales of stock over the month = 184 Cases 8) Average Sales of stock per day = (184 / 30) = 6.30 Cases ≈ 457 Cases Total value of per day AvG.06 = Rs. 6. of Cases X Rate = 1138 X 3980. 45.977 5) Total receipts of stock over the month = 201 Cases 6) Average receipts of stock per day = (201 / 30) = 6.68 Lakhs International School of Business & Media. Average Inventory held per day = (1138 / 30) = 37. for each SKU.The previous table shows. Average Value of Inventory held per day = (4529307 / 30) = Rs. 6. SKU: Butter 100gm 1) Total Inventory held over the month = 1138 Cases 2) Therefore. 68 Lakhs. Per day on an average. Pune 30 . the Distributor holds a total of 457 Cases as Inventory and its total value is Rs. 6.e.i. International School of Business & Media. Last column in above table shows. for a SKU. Receipts should be more than Sales. To maintain a sufficient level of inventory and constant flow of stocks. Pune 31 . for all 39 SKUs under study. R > S.Comparison of Receipts against Sales Following table shows the comparison of total receipts of stock against the total stock-sales in the period. the condition R > S was satisfied or not. International School of Business & Media. Although there were exceptions like Buttermilk. 26 SKUs had the situation R>S and for 13 SKUs the situation was R≤S. Category Period A B C upto 4 days around a week More than a week Possible reason/s Insufficient order quantity / gap between successive orders Unavailability of products / SKU getting skipped in the order Unavailability of products / SKU getting ignored for a long time 32 International School of Business & Media. where there might be sufficient inventory already in place and hence the distributor might have placed comparatively lower orders in the mentioned period. there were stock-outs observed for 21 SKUs. These stock-out situations can be classified and inferred in following manner. Pune . Out of 39 SKUs under the study. Summary of stock-out situations Following table shows the summary of stock-outs observed during the period of study. Out of 39 SKUs. International School of Business & Media.Observation: There are 10 SKUs which are common to Table-2 & Table-3. Pune 33 . generally the distributor tries to maintain a good level of inventory to satisfy the demand and avoid any stock-out. of Cases.Graphical Analysis Avg. It shows how the stock level varies over the period. stock level = Chart: Sample graph showing stock level over the month Above graph shows the stock level over the month for Butter 100gm. Since this product has a great demand in the market. Pune 34 . International School of Business & Media. Here Average Stock Level for the SKU is around 38 no. For Stock-out Type-A SKU: Cheese Block 1 Kg The reason for the stock out situation shown above might be due to long gap between two successive orders as shown below in bar diagram for Receipts. Pune 35 . International School of Business & Media. SKU: Shrikhand Elaichi 200gm The stock out situation shown above might be due to insufficient order quantity as shown below in bar diagram for Receipts. Pune 36 . International School of Business & Media. International School of Business & Media. Pune 37 .For Stock-out Type-B SKU: Cheese Block 200gm The stock out situation shown above might be due to unavailability of the product for a long time as shown below in bar diagram for Receipts. Pune 38 .SKU : Kool Rose Flavored Milk The stock out situation shown above might be because the SKU got skipped while placing the order as shown below in bar diagram for Receipts. International School of Business & Media. Pune 39 . International School of Business & Media.For Stock-out Type-C SKU: Cheese Slice 100gm The stock out situation shown above might be because there was the no or less availability of cheese products for a long time as shown below in bar diagram for Receipts. Pune 40 .SKU: Amrakhand 500gm The stock out situation shown above might be because unavailability of the product or it might got ignored while placing the order time as shown below in bar diagram for Receipts. International School of Business & Media. Implementation of Retail Register • • • Beat for implementation : Solapur Rd-1 Period of implementation : 23/04/12 to 14/05/12 SKU added after implementation : – Mozzarella Pizza Cheese. 200 gm – Amrakhand/Shrikhand. All flavours. 500 gm International School of Business & Media. 200 ml TP – Amulspray Tin. Pune 41 . 200 gm & 500 gm – Kool Chocolate Milk. especially kids. SKUs: • 500g Glass Cube Jar: The glass cube jar is a unique pack in the category. Vitamins. • 500g Refill: Amul PRO is also available in an attractive 5 panel 500g Refill Ingredients: Malt Extract. Permitted emulsifiers (E322. which not only enhances milk’s nutritive value but also makes milk a very tasty drink for people of all ages. E476). • Key product attributes of Amul PRO are as follows: International School of Business & Media. giving Amul PRO a distinct advantage of standing out of the clutter on retail shelves. It comes from the House of Amul. DHA and salt. Milk solids. Cocoa solids. Pune 42 . Caramel. who need milk and nutrition for healthy growth. Minerla. Sugar.LAUNCH OF “AMUL PRO” Amul PRO is a malt based milk additive. Raiding agent (E500(ii)). the brand which is known all over for providing quality products at value for money price. 140 per unit. Why Protein is often referred to as “Fast Protein”. vitamins and minerals) that help in boosting immune system enhance metabolism and nervous system functions and helps children be mentally sharp and physically agile. eyes and central nervous system of a child. • Prices & Margins: 500g Glass Cube Jar Price: Rs. 150 per unit. Promotional margin to retailer: 15% Promotional margin to retailer: 15% • Trade Sales Promotion: International School of Business & Media. It is easy to digest and helps muscle building and nurturing growth. helping your child strengthening the immunity and stay healthy. 500g Refill Price: Rs. 27 Essential Nutrients: Complete Wellness Amul PRO contains 27 essential nutrients (proteins. Pune 43 .Whey Protein: Muscle building & Immunity Whey Protein is the purest and most essential form of protein. DHA: Brain Development Docosahexaenoic Acid (DHA) is an essential fatty acid required for optimal development and function of the brain. It plays an important role in enhancing your child’s immunity by protecting it from allergies like Asthma. provides quick nourishment to muscles. • By inducing retailer or wholesaler to promote the brand by featuring. Made retailers aware about the advertising support by the Company through mega advertising campaign which included television. display and promotional price reductions. • Explained the retailers about the product pricing and respective margins to them.Trade sales promotion is promotion through the channel members or trade partners by• • Persuading the retailer or wholesaler to carry the brand or new product. Pune 44 . Distributed the display boards to retail outlets for more product awareness. • • • Retailers’ co-workers were also encouraged to push the product to customers. Persuading the retailer or wholesaler to carry more units than the normal amount or quantity. Connecting with retailers: • Conveyed all the necessary information related with the product and its unique selling propositions to the retailers and also encouraged them to create awareness about the same among their customers. print media and outdoor promotions. International School of Business & Media. • By encouraging and stimulating retailers and their co-workers to push the product to customers. • Persuaded the retailers to subscribe to schemes and acquire shelf space for the product preferably at critical and important display positions & customer touch points. Also some comparisons with respect to competitors were elaborated to gain a competitive edge in minds of retailer in order to persuade them. which have good & constant demand in the market. • • • • There were rarely any delays observed in delivering stocks to retail outlets. Inventory Management practices need to be adopted to avoid stock-outs. All the data of receipts of stocks is also loaded in the computer system through the software. • Salesman visits beats in the area as per weekly beat plan and books orders from retailers. unloading. sufficient level of inventory was observed over the whole period.OBSERVATIONS (A) Working of the distributor : • Sai Agency uses software called “WinOmkar” for computerized billing process. • • All other processes like loading. International School of Business & Media. Pune 45 . D’Mart. Billing for these orders is done on the same day evening. • Delivery for booked orders is done on the next day morning to retailers of the respective beats. The salesmen seem to have a good rapport & communication with most of the retailers. handling & storage are done in proper manner. Sai Agency distributes both Dairy products as well as Ice-Scream products to small retail outlets and also to the Modern Retail formats like Reliance Fresh. Retailer complained about the replacement issue which was on top of their list. Big Bazaar and Hypercity. (B) Inventory Management : • For SKUs. as the change for them was from a page to a complete register. over the month. the Distributor holds a total of 457 Cases as Inventory and its total value is Rs. (Refer Table-3) • For some of the SKUs.• For some of the SKUS. it was seen that 10 SKUs were common to both the tables. Pune 46 . Out of 39 SKUs. • So there was a high resistance from salesmen for implementing the retail register.5 Kg. from Company for some SKUs over some part of the period. stock-outs were observed for 21 SKUs. • For some of the SKUs. (Refer Table-2) • After comparing both Table-2 & Table-3. • Salesmen’s knowledge & understanding about using the register was a limitation. which weighs around 1. 6. total receipts were not more than total sales. receipts were not more than sales for 13 SKUs.68 Lakhs. demand was varying & unknown and hence sufficient level of inventory could not be maintained. the condition of receipts not being more than sales can lead to stockout situation. Out of 39 SKUs. (Refer Table-1) (C) Implementation of Retail Register : • Salesmen are habitual to current process of order booking (on a page) and favor the same as they feel it more convenient & familiar. This shows that. stock-out was observed on few occasions. International School of Business & Media. per day on an average. • As per calculations. • Some of the SKUs got ignored because of low demand in the market and order of those SKUs was not placed for a long time. • Also observed was unavailability of stock. • Also. Some SKUs were not included in the register. On the other side.• • • Convenience in order booking process was important to salesmen than any incentives offered. (D) Launch of Amul PRO : • • Most of the retailers asked for free samples to taste the product Some of the customers appreciated the design of Jar and felt it is attractive enough to go for the first purchase. Pune 47 . as it was lengthy. on few occasions the pictures of SKU on retail register helped retailer to place order for a SKU he could identify with the image than its name. Buttermilk. Order booking using the register took more time than normal. All the operations are done smoothly and it can support well the SAP integration GCMMF is planning for integration throughout the distribution channel.g SKUs in Cheese. • • • SKU listed under some of the categories were not in proper order. The retail register could be implemented on one beat only as trial. as salesman spoke names of more SKU than normally he does.g. CONCLUSIONS • Sai Agency exhibits good practices for overall distribution. e. the use of retail register helped to get orders for few additional SKUs on some of the occasions. e. International School of Business & Media. Salesmen needed to refer to 6 pages for each retail outlet. • To avoid stock-outs at distributor. International School of Business & Media. and SKUs do not get skipped. total receipts should be more than total Sales over a period. • Stock ledger can help distributor to know trends of stock consumption and thus will enable them to place orders logically. Order placing is logical. Pune 48 . they need to be encouraged for strengthening Company’s relationship with retailers. hence salesmen continue to resist the change and favor the current process of order booking. • To maintain a sufficient level of inventory and constant flow of stocks. • The retail register is not quite user friendly.• As good rapport & communication of salesman with retailer helps to bring more orders and achieve more sales. • A training session on implementation of retail register can prove helpful to salesmen to bring it in practice. it needs to be ensured that there is constant supply of products from the Company. Pune 49 . • • Replacement issues need to be addressed. Put more display for special/less known products at retail outlets to increase awareness. Conduct a training session for salesmen on practicing retail register.RECOMMENDATIONS • Logical Order placing to maintain sufficient level of inventory Proper and consistent order frequency. Bring in more user friendly and compact format for retail register. Take Steps to motivate Salesman for strengthening the relationship with retailers to boost up the sales. International School of Business & Media. • • • • Equal focus on all available SKUs. BIBLIOGRAPHY AND REFERENCES • • • • www. Koshy and M.investopedia.amul. A.com Article on GCMMF (Amul) in Business India magazine on 13th May 2012. Pune 50 . Jha www. Kevin Keller.com • • International School of Business & Media.businessdictionary. Sales & Distribution Management by : Krishna Havaldar and Vasant Cavale Marketing Management by : Philip Kotler.com www.