Study of effectiveness of distribution channel

1

A PROJECT REPORT

ON

A Stu dy of Effect iven es s of Dis t r ibu t ion Ch a n n el of Lijja t Pa pa d

FOR

(SHRI MAHILA GRIHA UDTOG LIJJAT PAPAD, PUNE)

Submitted to the University of Pune in partial fulfillment of the degree

Mas te r In Bus in e s s Adm in is t rat ion

SUBMITTED BY: -

MANISH LALCHAND PATIL (2005-2007)

VISHWAKARMA INSTITUTE OF MANAGEMENT

PUNE - 411048

2

Sr. No. Particulars Page No.

Company History

1

1 Research Design

1.1 Introduction of Study 7

1.2 Objective of Study 9

1.3 Scope of Study 10

1.4 Importance of Study 11

1.5 Data Details 12

1.6 Simple Size 13

1.7 Limitation of Study 14

2 Analysis & Interpretation of data

2.1 Introduction 15

2.2 Analysis & Interpretation for Distributors 16

2.3 Analysis & Interpretation for Wholesalers 20

2.4 Analysis & Interpretation for Retailers 25

2.5 Analysis & Interpretation for Customers 30

3 Findings, Conclusions & Suggestion

3.1 Introduction 35

3.2 Findings 36

3.3 Conclusions 38

3.4 Suggestion 40

4 Questionnaires 42

5 Bibliography 55

3

INDEX

4

5

Company Profile:

Lijjat organization is a women's organization. It is an organization- of the women, by the

women and for the women. It was started in 1959 with 7 lady members with a borrowed sum of Rs.

80/- in Mumbai.

The turning point of the Institution was in 1966 when it was registered under the Bombay

Public Trust Act 1950 and also registered under Societies Registration Act, 1860 and got recognition

from Khadi & Village Industries Commission as a village industry.

The objective of the Institution is to provide employment to the ladies to enable them to earn

decent and dignified livelihood.

Any women who can render physical work in this Institution without distinction of caste,

creed and colour and agrees to abide by the objective of the Institution can become a member of the

Institution from the date on which she starts working. Papad production work starts at early hours in

the morning i.e. 4.30 a.m. Institution has a mini bus, which picks up the members from the closest

point of residence to the branch and back home.

Every branch is headed by a Sanchalika to see the production of the branch. They have a

Central Managing Committee, which consist of 21 members out of, which we have 6 (Six) elected

Office Bearers i.e. President, Vice - President, 2 (Two) Secretaries and 2 (Two) Treasurers.

All the branches are autonomous units for the purpose of profitability and the profit or loss as

the case may be of such unit is borne by the owner sister members of that branch by increasing or

decreasing their rolling charges accordingly. The credit for rapid progress goes to the constant

vigilance on the part of sister members maintaining the quality of Lijjat Papad with their hard work.

Besides Lijjat Papad the Institution has other products like Khakhra, Masala, Wadi,

Detergent Powder & Cakes, Bakery Products & Chapaties. At present it has 63 Branches & 40

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Divisions and gives self-employment to about 40,000 sister members all over India with Sales

turnover of Rs. 300 Crores which includes Rs. 12 Crores of Exports.

The exports are made through Merchant Exporters to countries like UK, USA, Middle East

Countries, Thailand, Singapore, Hongkong, Holland, Australia and other Countries.

The Institution has received an award from Khadi & Village Industries Commission as a

"Best Village Industry" for the period 1998-1999 to 2000-2001.

On 6th September 2003 the Institution has received the Economic Times Award of

"Businesswomen of the Year 2001-02 for Corporate Excellence".

In January 2003 they received the award for 'Best Village Industries' at the hands of Hon'ble

Prime Minister Shri Atal Behari Vajpayee at New Delhi.

Lijjat was featured in various T.V. Channels, which include BBC World in the programme

"Business Bizarre".

The Institution, over the years, has paved the way for women to become self-reliant and self-

confident. Lijjat has provided them the right platform to improve their status in society.

The success of Shri Mahila Griha Udyog Lijjat Papad (now onwards Lijjat) lies, among other

things, in its ability to offer self-employment opportunities to women at all its 61 branches. Any

woman looking for work can approach any of Lijjat s branches and join the 40,000 plus strong team

of Lijjat s sister-members without any fuss, and earn Rs 2,000 to Rs 3,000 every month for her

roughly six hours of work everyday from home. That such a system did not collapse under the

weight of its growing number of workers but, on the contrary, gathered strength from them and

became a shining example of a business based on the sound but apparently impractical Gandhian

concept of Sarvodaya and trusteeship is the biggest surprise element in Lijjat s success story. The

company has grown into a corporate with an annual turnover of Rs 300 crore for many years.

7

Mumbai has 12,000 members, the rest of Maharashtra has 22,000, and Gujarat has between

5,000 and 7,000 members. All sister members of the institution are the owners. All profit or loss is

shared. The Central Managing Committee has only the authority to decide the manner in which

profit or loss should be apportioned among sister members.

As a business enterprise, the declining sales figure for three consecutive years Rs 298 crore

(1999-2000), Rs 288 crore (2000-2001), Rs 281 crore (2001-2002) & in 2004-2005 it s Rs-300 crore

is a matter of concern for Lijjat management. A growing competitive local market has captured

some of its home turf in Maharashtra and Gujarat. But Lijjat has also expanded to the North Delhi,

Punjab, Himachal Pradesh and, with the latest branch in Jammu, to the Kashmir market as well.

Though each branch is responsible for the marketing of its products in the areas allotted to it,

the new centralized marketing offices now procure surplus production from different branches and

market it at an all-India level. This coupled with a healthy upward trend in the export of Lijjat Papad

positions Lijjat as the strongest brand in the Papad industry. The other big brands in the Papad

market are Bikaner, and Saktibhog, but none seem to be able to make any dent in Lijjat s share of

the industry as their core business is not Papad.

Lijjat markets its products through a wide network of dealers and distributors all across the

country, and has never chosen to sell or push its products directly through the vast network of its

offices and sister-members even during the initial years. Rather, over the years, Lijjat has developed

cordial and mutually beneficial relationships with its dealers. Sisters claim they believe in doing the

business wisely and on sound business ethics.

There are 24 dealers for Ranchi branch in cities like Ranchi, Jamshedpur, Dhanbad, Bokaro,

Patna, Gaya. During the month of November 2002, around 40,000 packs of 250 gram pack of papad

were sold and the total income crossed Rs 0.65 million. According to the accountant at Lijjat s

Ranchi branch, which wishes to remain unnamed (as that would shift the attention from sister-

members to employees and thus violate Lijjat s principles and traditions), from 2003 Lijjat is aiming

at a sales target of a million rupees every month.

8

Thanks to sound advertising, Lijjat has already become a household name as a symbol of

women s strength and resurgence, and its recipe combining udad, moong, pepper and hing has

conquered the papad-eater s palate.

The exports alone account for Rs 10 crore. They are not directly involved in exporting, but

recognized professional merchant exporters (who also export other food products) place an export

order.

Only on receiving the full advance through a cheque do they begin production. Because all

exports are done from Mumbai, the supply also comes from here. Export production is of the same

quality as daily production. In fact, they send some of the daily production for export.

Again with exporters, the responsibility ends with delivery. They are, both, expected and

encouraged to check the goods on collection. After that, where and how they export is their call. At

present, 30 per cent to 35 per cent of the production of Lijjat Papad is being exported, mainly to

countries like the United States, the United Kingdom, the Middle East, Singapore, Hong Kong and

Holland.

9

THE MANEGEMENT : -

1) Smt. Jyoti J. Naik

President (April 15, 2005)

2) Smt. Kamal D. Dhandore - Vice-President

3) Smt. Sunanda R. Belnekar - Secretary

4) Smt. Gangavati H. Naik - Secretary

5) Smt. Priyanka G. Redkar - Treasurer

6) Smt. Kshama M. Sutar

Treasurer

10

The Distribution Chart: -

11

1. RESEARCH DESIGN

1.1 INTRODUCTION OF STUDY:

The Project is based on the distribution channels activities of the Papad Industry.

The title of the project is "A Study of Effectiveness of Distribution channel of Lijjat

Papad In Pune Market .

The Project Design is prepared to achieve the defined objectives. Any survey should be of a

proper research method. It is basic framework, which provides the guideline for rest of the Research

Process. It mainly specifies the objectives of project, method of collecting the data, research

approach, sampling plan, and time period etc.

The reason for selecting this topic is study and experience an important role of Distribution

channel in the success of the organization. Papad is the perishable product and regularly used in

families, in hotel, in restaurant etc. and it have requited the strong distribution channel. Distribution

channels are an operating system with an identifiable and distinctive pattern of behavior.

Distribution channels is playa very important role in achieving the marketing objective of a concern

handling and preserving the distribution channels which is valuable and challenging task, Hence

selection of such type of distribution network for study is an interesting task.

The project gives the overview of Papad industry. The main objective of the project is to find

out effectiveness of Distribution channels of Lijjat Papad in Pune market and also find out the

satisfactory level of the marketing intermediaries like Distributors, Wholesalers, and Retailers etc.

In Manufacturing, Service providing, Marketing, Automobile industry, Pharmaceutical or

any other industry, Distribution channel plays a very important role to serve the product to the end

customers, for whom the organization is taking efforts.

Every organization must require strong Distribution Network. Only through Physical

Distribution organization is able to provide the products up to the customers. In the F. M. C. G. (Fast

Moving Consumer Goods) industry strong distribution network is most important, because of

unavailability strong distribution network, many famous products go out of the market.

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Papad industry is an important industry and scope is increasing day by day. Therefore

looking at the potential opportunity and scope of growth, the researcher decided to peruse Summer

Project in a Papad manufacturing company. It helps to researcher to get a deep insight in the working

culture of the industry. This experience increases knowledge about the equivalent industries like Ice-

cream industry and will be great help in future career prospects of researcher.

The Recommendations, Suggestions and conclusions given in the supplementary project

report are based on detailed analysis of the information and data gathered from the distributors,

wholesalers, retailers and customers using graphs, percentage and various statistical methods etc.

If the organization considers the suggestions and follows them in the practical work it will

definitely helpful to the organization. The project has certain limitations and the views expressed are

solely of the author and it is not necessary that the views are the company s views and company is

not responsible for any miss confession.

Whole study has been taken for the practical knowledge of working activities and methods

used in the organization and to check out the real utility of theoretical knowledge of the management

books.

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1.2 OBJECTIVES OF STUDY:

A.) PRIMARY OBJECTIVES:

a) To study the effectiveness of the distribution channels.

b) To find out the satisfaction of intermediaries of distribution channels.

B.) SECONDARY OBJECTIVES:

a) To find out the strength and weakness of distribution channels.

b) To study the various problems faced by the intermediaries.

c) To Study the methods of channels distribution.

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1.3 SCOPE OF STUDY:

The survey has been conducted in the city areas of Pune and visited the nearby small sub-

urban areas such as Pimpri, Chinchwad, Katraj, Marketyard, Shivajinagar, Deccan, Kothrud,

Natawadi, Kasabapeth, and Narayanpeth etc.

During the survey, researcher met to distributors, wholesalers, retailers, and customers for

collecting the information.

This project has the objective to study the effectiveness of the distribution channel network, it

cover the study of distribution network, strength and weakness of distribution channels, method for

distribution channels and focuses on the problem areas arising in the distribution channels of the

Papad.

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1.4 IMPORTANCE OF STUDY:

Project is important for the organization, because it reflects the picture of effectiveness of

Distribution channel and concentrates on the satisfaction of Distribution intermediaries and strengths

and weaknesses of channel. Distribution channel play very vital role in the Papad industry. To

provide fresh and good quality Papad up to the last customer in required quantity with in required

time is a challengeable task for the organization.

Project work and findings are important for the organization because of following:

It reflects the picture of effectiveness of distribution channel network;

It emphasizes on the cost of channel distribution from point of manufacturing up to the

point of real consumption;

It explain the satisfaction level of the intermediaries;

It concentrates on the problems of distributors, wholesalers, retailers and customers;

It also explains the strength and weakness of the distribution channels;

It helps the organization to manage the distribution channel members and for designing

motivational schemes to increase the moral of the sells workforce.

If the organization considers the findings and practical activities carried out accordingly then it

will definitely help the organization to strengthen the distribution channel activity and to increase the

effectiveness of the distribution channels.

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1.5 DATA DETAILS:

This information should be collected in such manner that becomes easy to organize data and

preparing the result, so that result or analysis could be arrived as an act. The process of research is

the most important part as this lays the foundation for the step to be taken for improvement or

mentioned purpose as this end reflects the results. In this part of the research surveyor makes plan to

gather the information & the research instrument through which information will be collected. i.e.

Questionnaire.

SOURCES OF DATA:

1. Primary Data.

2. Secondary Data.

1.) PRIMARY DATA:

Every research is depending upon the primary data. In this project, the data has been

collected through Questionnaire from the Distributors, Wholesalers, Retailers and Customers of the

Lijjat Papad and visits to the people has been done on the basis of Random Sampling.

2.) SECONDARY DATA:

Researcher started his investigation by examining secondary data to see whether his problem

could partly or wholly be solved without collecting costly primary data. Secondary Data provides

starting points for research and offers the advantage of low cost & ready availability, on the other

hand the data needed by the researcher might not exist or existing data might be incomplete or

unreliable. Secondary Data was collected from the following sources:

a. Internal Sources

b. Sales Statements

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c. Brochure of company

d. Internet

e. Magazines etc.

1.7 SAMPLE SIZE:

Sample size means total number of Distributors, Wholesaler, Retailers, Customer, and Hotel

owner visited by researcher and filled up the questionnaire. This project has the total sample size of

129 from the Pune Market. The sample size consists of the following format.

No Sample name Sample size

1. Distributors 4

2. Wholesaler s 30

3. Retailers 35

4. Customers:

a) Common customers 50

b) Hotel owners 10

Total 129

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1.8 LIMITATIONS OF STUDY:

1) As the methodology of data collection was mainly Questionnaire and interview of

samples which were selected by researcher. Some people (sample) may not have revealed

the true information and some times because of the bias, the finding may not be fully

correct.

2) The number of Distributor, Wholesaler, Retailers and Customer interacted were limited

so the actual potential might differ from the reported findings in the project.

3) The information has been presented after collecting data form Pune market only. Hence

findings and suggestions are not match or applied in geographically different market.

4) Co-operation by the Company's officials was limited because of company norms, hence

total required information had not made available properly.

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2. ANALYSIS AND INTERPRETATION OF DATA: -

2.1. INTRODUCTION: -

Data analysis and interpretation plays an important role in turning quantity of paper into

defensible, actionable sets of conclusions and reports. It is actually a set of method and technique

that can be used to obtain information and insights from data.

It can lead the researcher to get information and insights that would not be available. It

can help to avoid erroneous judgments and conclusion. It can provide a background to help

interpret and understand analysis conducted by others. Knowledge of power of data analysis

techniques can constructively influence research objectives and research design.

Data analysis can be a powerful aid to gain useful knowledge from the data collected.

Data analysis has the potential to ruin a well-designed study. Inappropriate or misused data

analysis can suggest judgments and conclusions that are unclear and incomplete.

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2.2. ANALYSIS AND INTERPRETATION OF DATA (FOR DISTRIBUTOR):-

I) REASON BEHIND SELECTION OF LIJJAT PAPAD FOR DISTRIBUTION FROM

DISTRIBUTOR IN PUNE MARKET.

Sr. no. Reason for selecting Lijjat Papad as

distribution.

Percentage

1 Famous Brand Name 50

2 Cheaper cost 3

3 Low Deposit 10

4 High Demand In Market 7

5 Effective selling. 30

Total 100

Reason behind selection of Lijjat papad for distribution.

Low Deposit 10%

Cheaper cost 3%

50%

Effective selling.30%

High Demand In Market 7%

Famous Brand Name

The above Table and Graph

clears that, the reason of selection of Lijjat Papad for distribution in Pune market from distributor.

The distributor gives more value to the factors famous brand name & effective selling.

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II) SATISFACTORY LEVEL OF DISTRIBUTOR ABOUT COMMISSION RATE.

Sr. No. Satisfactory level No. of respondent Percentage

1 Satisfied 3 75

2 Unsatisfied 1 25

Total 100

The above table and graph show that 75% Distributor are satisfied about commission rate which

is given by the organization & 25% Distributor are unsatisfied about commission rate.

Percentage of satisfaction of distributor about commission rate.

75%

25%

Satisfied

Unsatisfied

22

III) INFORMATION ABOUT THE DELIVERY OF PAPAD TO DISTRIBUTOR IN

REQUIRED QUANTITY.

Sr. No. Respondent

opinion

No. of respondent Percentage

1 Yes 3 75

2 No 1 25

Total 100

The table & graph show that 75% distributor get Papad in required quantity while 25% of

them says they don t get Papad because of shortage.

Percentage of getting Papad in required quantity.

75%

25%

Yes

No

23

IV) INFORMATION ABOUT THE DELIVERY OF PAPAD TO DISTRIBUTOR IN

REQUIRED TIME.

Sr. No. Respondent

opinion


1 Yes 3 75

2 No 1 25

Total 100

The table & graph show that 75% distributor get Papad in required time while 25% of

them says they don t get Papad because of transportation problem or shortage.

Percentage of getting Papad in required time.

75%

25%

Yes

No

24

2.3. ANALYSIS AND INTERPRETATION OF DATA (FOR WHOLESALER):-

I) WHOLESALER S OPINION ABOUT GETTING PAPAD IN REQUIRED QUANTITY

AND AT REQUIRED TIME FROM DISTRIBUTOR OR FROM COMPANY.

Sr. No. Wholesaler s

opinion


1 Yes 19 63.33

2 No 11 36.67

Total 30 100

The above table and graph clearly shows 63.33% wholesalers says that they got Papad in

required quantity and at time while 36.67% wholesaler says that they are not getting Papad in

required quantity & at proper time because of shortage & by problem of transportation.

Percentage of getting Papad from company and

distributor.

63.33

36.67

Yes

No

25

II) INFORMATION ABOUT THE CO-OPERATION GETTING FROM DISRIBUTOR.


opinion


1 Yes 24 80

2 No 06 20

Total 30 100

The above table & graph clearly shows 80% wholesalers say that they got co-operation

from distributor while 20% of them says that they don t get co-operation from distributor.

Percentage of getting co-operation from

distributor.

80%

20%

Yes

No

26

III) THE INFORMATION ABOUT THE PRODUCT REPLACEMENT FROM

DISTRIBUTOR TO WHOLESALER.


opinion


1 Yes 16 53.33

2 No 14 46.67

Total 30 100

Percentage of replacement of product from distributor.

53.3346.67 Yes

No

Graph & table clearly shows 53.33% wholesalers say that distributor replace the Papad if

it is inconsumable while 46.67% of says that they don t get replacement on receiving

inconsumable Papad.

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IV) SATISFACTORY LEVEL OF WHOLESALERS ABOUT COMMISSION RATE.

Sr. No. Satisfactory level No. of respondent Percentage

1 Satisfied 12 40

2 Unsatisfied 18 60

Total 100

Percentage of wholesaler satisfaction abou commission rate.

40

60

Satisfied

Unsatisfied

The above table & graph show that 60% wholesalers are not satisfied about commission

rate while 40% says they are satisfied.

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V) EXPECTATION ABOUT INCREASE IN COMMISSION RATE.

Sr. No.

No. of wholesalers Expected increase

in commission

rate.

Percentage

1 7 0 to 1 38.88

2 5 1 to 2 27.77

3 4 2 to 3 22.22

4 2 3 to 4 11.11

Total 100

Expectation about commission rate

38.88

27.77

22.22

11.11

0

5

10

15

20

25

30

35

40

45

0 to 1 1 to 2 2 to 3 3 to 4

Percentage

Above graph show that 38.88% of wholesalers expect 0 to 1% increase in commission

rate. While 11.11% of wholesalers expect to increase commission rate up to 3 to 4%.

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2.4. ANALYSIS AND INTERPRETATION OF DATA (FOR RETAILER):-

I) RETEILER S OPINION ABOUT GETTING PAPAD IN REQUIRED QUANTITY AND

AT REQUIRED TIME FROM WHOLESALER S.

Sr. No. Retailer s opinion No. of respondent Percentage

1 Yes 28 80

2 No 7 20

Total 100

Percentage of getting papad in required quantity & in time.

80%

20%

Yes

No

The above table & graph clearly shows 80% retailers says that they got Papad in required

quantity & at time while 20% retailers says that they are not got Papad in required quantity & at

proper time because of shortage & by problem of transportation.

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II) INFORMATION ABOUT THE GETTING PAPAD IN SERVICE PERIOD.

Sr. No. Period No. of respondent Percentage

1 After 7 days 20 57.15

2 After 15 days 10 28.57

3 Within a month 5 14.28

Total 100

Getting Papad in service period

57.15

28.57

14.28

0

10

20

30

40

50

60

70

After 7 days After 15 days Within a month

Percentage

Above graph show, 57.15% retailers say that they visited wholesalers shop after 7 days,

28.57% says that they visited after 15 days & 14.28% says they visited once in a month.

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III) PERCENTAGE OF RETAILER WHO FORCE TO CONSUMER TO PURCHASE

LIJJAT PAPAD.


1 Yes 10 28.57

2 No 25 71.43

Total 100

Percentage of retailer who force to consumer.

29%

71%

Yes

No

Above graph show that 71.43% of Retailers don t force customer to buy the Lijjat

Papad while 28.53% forces to buy.

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IV) SATISFACTION OF RETAILER S ON SALE OF LIJJAT PAPAD.


1 Yes 30 85.71

2 No 5 14.29

Total 100

Satisfaction of retailer about sale of Lijjat Papad.

86%

14%

Yes

No

Above graph shows that 85.71% of retailers are satisfied with sale of Lijjat Papad while

14.29% are not satisfied.

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V) RESPONSE TO LIJJAT PAPAD COMPARED TO OTHER PAPAD S FROM

CUSTOMER ACCORDING TO RETAILERS.

Sr. No. Level of response No. of respondent Percentage

1 High 25 71.42

2 Medium 8 22.87

3 Low 2 5.71

Total 100

Comparison of Lijjat Papad with other Papads.

71.42

22.87

5.71

0

10

20

30

40

50

60

70

80

High Medium Low

Percentage

Above graph show that 71.42% of retailers says the sale of Lijjat Papad is high as

compared with other. 22.07% says sale of Lijjat Papad is medium & only 5.71% retailers say sale

is low.

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2.5) ANALYSIS AND INTERPRETATION OF DATA (FOR CUSTOMER):-

I) CUSTOMER S OPINION ABOUT GETTING PAPAD IN REQUIRED QUANTITY

AND AT REQUIRED TIME FROM RETAILER S.

Sr. No. Customer s

opinion


1 Yes 53 88.33

2 No 7 11.67

Total 100

Percentage of customer who are getting Papad in required quantity & time.

88%

12%

Yes

No

The graph show that 88.33% of customer says that they got Papad in required quantity & at

proper time from wholesalers & retailers while only 11.67% say that they don t get Papad.

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II) INFORMATION ABOUT FORCE OF RETAILER TO CUSTOMER FOR

PURCHASING OTHER PAPAD RATHER THAN LIJJAT.

Sr. No. Customer s

opinion


1 Yes 15 25

2 No 45 75

Total 100

Percentage of customer being forced by retailer to buy another Papad.

75%

25%

No

Yes

The graph shows that 75% customers are forced by retailer to buy another Papad while 25% are not

forced to buy.

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III) BECAUSE OF FOLLOWING FACTOR CUSTOMER PURCHASE LIJJAT PAPAD

Sr. No. Customer s opinion No. of respondent Percentage

1 Test 22 36.66

2 Quality 18 30

3 Brand 12 20

4 Price 8 13.33

Total 100

Customers purchase Lijjat Papad beceuse-

36.66

30

20

13.33

0

5

10

15

20

25

30

35

40

test quality brand price

percentage

36.66% of customer says they purchase Lijjat Papad because Papad s test is best. 30% of

customer says they purchase Lijjat Papad because Papad s quality is best. 20% of customer says they

purchase Lijjat Papad because of brand of Lijjat. Only13.33% of customer says that they purchase

because price of Lijjat is affordable for them.

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IV) INFORMATION ABOUT EFFECT OF M.G.L.P S ON CUSTOMER PURCHASING.


1 Yes 50 83.34

2 No 10 16.16

Total 100

Percentage of customers affected by MGLP's Product.

84%

16%

Yes

No

Above graph shows that 83.84% customer says that MGLP s products affect while 16.16% are not

agree with that.

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V) INFORMATION OF SATISFACTION OF CUSTOMERS ABOUT PRICE OF PAPAD.


1 Yes 35 58.34

2 No 25 41.66

Total 100

Percentage of satisfaction to customers about price.

58%

42%Yes

No

Above graph shows that 58.34% of customers are satisfied with the price of Papad while 41.66% are

not satisfied with price.

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3.FINDINGS, CONCUSIONS & SUGGESTIONS

3.1 INTRODUCTION:

After collecting the data from the market, researcher has converted it into the meaningful

information by applying analyzing techniques and tools on the collected data. The information

prepared and dragged from the collected data. Findings are the current market situations, which he

collected from the outside market of the organization.

Suggestions are the ideas of the researcher, which he would like to present overcome from the

problems, come in front with the help of the research. Here the researcher has an independence to

give his suggestions after the detail study on the prescribed topic. Because of the detail study the

basic problem has been discussed by the researcher and on the basis of the study and findings he

gives the suggestions to the company.

The suggestions may include alternative strategic options, new ideas, action plans, difference

perceptions, customer base differentiation, change in target market etc.

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3.2 FINDINGS:

After going through the findings from all the Questionnaires designed for the respondents

(Distributor, Wholesaler, Retailer, and Customer). Lijjat Papad positioned as leading in

manufacturing of Quality Papad all over India. In last 35 years of span no one Papad manufacturing

company beat the Lijjat in case of Quality and Test of the Papad.

While analyzing the data and keeping in mind the discussion with the various respondents

from Pune market, one can say that competitors in the market are like Bikaner, Pravin, Haldiram,

Rambandhu, Shalimar Desai, and few local brands such as Hanuman, Arati, Shidhi, Viki, Osval,

Sansar, Anand, Prashant, Luxmi, Sona, Jai, Shubham etc. These companies are the competitors of

Lijjat Papad and they try to follow the path of Lijjat Papad but they can t maintain the quality and

test of their Papad as like Lijjat. Quality and test are the basic element because of them Lijjat name is

always present on the customer tongue.

Though they are not providing qualitative and testy Papad, but due to them the customers

have alternative/ substitute for the Lijjat Papad. As concern to Pune market more 13 Papad Brand are

available in the market.

The Local competitors like Hanuman, Viki, Osval, Shalimar etc launching the Papad at lower

cost and providing the seasonable schemes to the Retailer, Wholesaler, and Customers. The

distributor of Lijjat Papad can t give attention on the lower income area and not provide delivery

activity to retailer, which are situated in the lower income area, but they have purchasing power.

Wholesaler s, Retailers of Lijjat Papad is satisfied by the distribution network and availability

of Papad. It is good news for Lijjat Papad from response to the questionnaires by respondents some

problem areas come in front like;

The local competitors like hanuman, Viki, Shalimar, Osval etc launching the Papad at

lower cost and also providing the seasonable schemes to the Wholesaler, retailer and

customer.

41

Local brand also give the credit to the Wholesaler and retailer.

According to the wholesaler and retailer the commission rate for competitors product is

high and so that they forced to customer for purchasing this brand.

But actually they cant understand one thing which is, they sale half quantity of

competitors Papad as compare to Lijjat Papad and because of large sale, they are getting

more commission from Lijjat Papad than competitors.

It is necessary, aware to intermediaries about how the Lijjat Papad selling is given

more benefit than other.

The Lijjat Papad is one of the products of the "SHRI MAHILA GRIHA UDYOG" and

KHADI AND GRAM UDYOG COMMISION OF GOVERNMENT OF INDIA this

thought positively affect the buyers behaviors recognizes it

The distributor select the Lijjat Papad for distribution because of famous brand name and

product have high demand in the market.

75 % Distributors are satisfied about the commission rate.

No one Distributor uses the own sales promotion activity.

63.33 % Wholesalers are satisfied about the delivery process.

80% Wholesalers are satisfied about the co-operation, which is getting from the company

and distributor.

No one Wholesalers use the own sales promotional activity.

46.67 % Wholesalers unsatisfied about replacement of product.

85.71% Retailers are satisfied about the sale of Lijjat Papad in the market.

Response to Lijjat Papad as compared to other Papad is high and it is 71.42%

Some retailers are not getting all type of Papad in required quantity.

Customer purchase Lijjat Papad because of the Test and Quality

Also some respondents say that, advertisements of Lijjat Papad are very less on the media

television & radio.

42

3.3 CONCLUSIONS:

The whole objective of the study was to conduct a through survey of the Pune Market, to find

out the Effectiveness of the Distribution Channel of Lijjat Papad. The study was crucial because of

the facts, which were collected from the market could provide the crucial data to the organization

regarding distribution channel of Lijjat Papad. It was also important because the study even

concentrated on the cost of distribution that had been taken to reduce the cost of distribution, which

is the major part of the total cost of the product. This study shall help the organization to develop

new methods of distribution and also help to find further fine-tuning to overcome from the loopholes

in the distribution channels.

To satisfy the Distributors, Wholesaler s, Retailers of Lijjat Papad available in Pune has to

keep proper relation with them and must have to take necessary steps to overcome from the small

problems mentioned in analysis.

Papad market of Pune is growing at the rate of more than 30% annually, and the customers of

Pune eat Papad throughout the year in all four seasons. Because of the good test and quality the

families who make Papad in home also divert towards the Lijjat Papad. Thus it provides a lot of

opportunity for the future growth. It was observed during the entire study, that the Lijjat Papad

enjoys an excellent reputation for its quality and test of the Papad. All the flavors launched by the

company are admired and appreciated by the maximum population of Pune.

This Organization is established for development of women and the owner of that

organizations are women. Because of this factor, Lijjat Papad have achieved space in the mind of

customer. KHADI AND GRAM UYDOG COMMISION OF GOVERNMENT OF INDIA

recognizes Lijjat Papad, this fact is also showing the good status of Lijjat Papad in corporate world.

Lijjat Papad is the one of the product of" "SHRI MAHILA GRIHA UDYOG LIJJAT PAPAD " this

thought positively influenced and impressed buyer s behavior.

The company already has a huge marketing setup on efficient distribution network in Pune

market. The larger reach of the company can take care of the regular production of Papad. This

results in impressive product availability at all retailers shops. 88.33% Customers are satisfied on

43

availability of Lijjat Papad.

In Pune the Papad market already has multiple players that have been making a lot of noise

thereby increasing the market scope, this has resulted in the market the market growing at a very

healthy rate.

According to the study, distribution to lower retailers shop and inner side retailer s shop of

the city has the problem of late delivery. Many retailers and wholesaler have the problem of

insufficient display and advertisement aid provided by the company.

Throughout the study surveyor sincerely tried to deal and concentrated on above aspects.

Strategies to overcome from above aspects will definitely help the organization to strengthen the

distribution network of Papad in Pune market.

44

3.4 SUGGESTIONS:

Distribution channel of Lijjat at Papad is more successful in the Pune Market.

Following are some suggestions, which shall help the company to overcome from the existing

problems and strengthen the distribution network to 100% effectiveness.

Rates of Papad should be reduced up to certain extent,

Decrease the lead-time of distribution to Wholesaler and Retailer,

Company should take precautions about maintaining regular good quality and taste of

the Papad,

Company should maintain proper communication with distributors, Wholesaler, and

retailers. Improving the communication system will require less cost and also fetch

higher satisfaction of Distributor, Wholesaler and Retailers,

Company has to develop advertisement on media, which not only help to increase

awareness but also helps to increase the sales of Lijjat Papad and also provide

Banner, Posters etc to the intermediaries,

Manage proper availability of all type of Papad,

Give effective service in rainy season.

Provide satisfactory advertisement aid to Wholesaler and retailers on their shop's,

Launch Distributor, Wholesaler, Retailers oriented schemes, which promote them to

sale the company's brand.

At the time of festival and important occasion company should give gift or discount

on the Papad pack.

Company should make the frequently survey in the market for preparing effective

distribution channel.

Develop good relations and communication with Distributor, Wholesaler, and

Retailers by such ways.

Giving Gifts on occasions,

Periodical visits of officers to the Wholesaler and retailer shops.

45

In addition to above suggestions following points of "Value Addition" are also important to

concentrate:

i. Establish network with distributors.

ii. Understand distributor's needs.

iii. Monitor inflow and outflow of stocks.

iv. Relinquish stock so as to lower their inventories.

v. Ensure distributors profitability.

vi. Get distributions to service retailers.

vii. Monitor distributor's performances.

viii. Service selected retailers directly if requires.

ix. Ensure increase in customer's value.

46

Questionnaires for Distributors: -

Name:

Age:

Address:

1) Why did you select Lijjat Papad brand for distribution?

a) Brand Name b) Cheaper Cost

c) High Demand d) Others

2) Is the company able to supply Lijjat Papad to you daily in time?

Yes No

3) Is the company able to supply Lijjat Papad to you daily in required quantity?

Yes No

4) Does the company provide required support to you for increasing the sales?

Yes No

47

If yes then in which form the company gives support

a) Advertisement b) Higher discount

c) Credit facility d) Any Other support

5) Are you satisfied with commission rate, which is given by company?

Yes No

6) Are you satisfy with the delivery process?

Yes No

7) Which channel mode you prefer for getting the papad delivery from Lijjat?

1) You pick up the stock from the company

2) You get the stock at your warehouse

3) You get the stock at warehouse s shops

4) You get the stock at the retailers counter

8) Are you using your own warehouse for storing purpose?

Yes No

48

9) What type of distribution set up you have?

1) Through Wholesalers

2) Through retailers

3) Partly through wholesalers

4) Direct to consumer

10) Do you have face any problem in company transportation system?

Yes No

If yes please describe

11) Did you ask for specific area of distribution or you have been working company?

Yes No

Company suggest

12) Have you ever face any conflict among you and other distributors?

Yes No

49

If yes please explain reason

13) Which problem are you facing today? Please explain.

Suggestions: -

50

Questionnaire for Wholesalers: -

Name:

Age:

Address:

1) Are you able to supply the Papad to retailers in required quantity & in time?

Yes No

If no please explains reasons

2) Do you get good co-operation from distributor?

Yes No

3) What types / brand of Lijjat Papad are sold by you?

1) Udad with Pepper

2) Udad with Garlic-Chillies

3) Udad with Red Chillies

4) Moong (50% Udad & 50% Moong)

5) Udad special

6) Panjabi Masala special

51

4) Are you satisfied with delivery process?

Yes No

5) Are you satisfied with commission rate, which is given by distributor?

Yes No

If no please describe your hope-

6) Do you sell Lijjat Papad to retailers at company price or you set your own price?

Yes No

7) Your opinion regarding promotional efforts by Lijjat Papad?

Yes No

If yes -

1. How many salesmen are there?

2. Do you use Advertisement, Banner and Posters for increasing the sale?

Yes No

52

8) Do you get the replacement of Lijjat Papad?

Yes No

9) Does company person visit your place?

Yes No

10) Suggestions -

53

Questionnaires for Retailers: -

Name:

Age:

Address:

1) Whole sales provide Lijjat Papad in required quantity and in required time?

Yes No

2) At what frequency you get Lijjat Papad from wholesaler?

1. After 7 days.

2. After 15 days.

3. With in a month.

3) Do you get all types of Lijjat Papad from wholesaler?

Yes No

If no, please specify

4) Do you force consumer for purchasing the Lijjat Papad?

Yes No

54

5) Are you satisfied with the sale of the Lijjat Papad?

Yes No

6) Do you satisfied in respect of

1) Rate of commission.

2) Back up services.

3) Any other, please specify.

7) Are you selling any other similar product?

Yes No

If yes, which out of below -

1) Bikaner

2) Samadhan

3) Saral

4) Haldiaram

5) Other

If yes, is due to

1) Price

2) Package

55

3) Delivery schedule

4) Other

8) How the consumers give response to Lijjat Papad as compare with the other Papad?

1) High

2) Medium

3) Low

9) Does wholesaler provide the credit facilities are discount to you, if you purchase Lijjat Papad

in large quantity?

Yes No

10) Suggestion-

56

Questionnaires for Consumers: -

Name:

Age:

Address:

1) Are you regular customer of Lijjat Papad?

Yes No

2) Which type of Lijjat Papad do you buy?

1) Udad with Pepper

2) Udad with Garlic-Chillies

3) Udad with Red Chillies

4) Moong (50% Udad & 50% Moong)

5) Udad special

6) Panjabi Masala special

3) Why do you purchase the Lijjat Papad?

1. Test

2. Brand

57

3. Quality

4. Price

4) Is the Lijjat Papad available in your neighborhood shop?

Yes No

5) Does the retailer force you to purchase other Papad?

Yes No

6) Do you get Lijjat Papad in M.R.P.?

Yes No

7) Are you satisfied about the price?

Yes No

8) Are you aware with Lijjat Papad is one of the product of the Shri. M.G.L.P. s. Does this

aspect affect your purchasing decision of Papad?

Yes No

58

9) Do you get replacement of Lijjat Papad due to any reason?

Yes No

Please specify reason-

10) Suggestion-

59

5 BIBLIOGRAPHY

1. Philip Kotler, Marketing Management, 12th Edition.

2. Rajan Saxsena Marketing Management, 2nd Edition.

3. C.R.Kothari, Research Methodology, 2nd Edition.

4. www.LijjatPapad.com.

http://www.LijjatPapad.com

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