Marico Indiustries Ltd

EXECUTIVE SUMMARY SYNOPSIS India’s consumer market is riding the crest of the country’s economic boom. India’s fast moving consumer goods (FMCG) sector is the fourth largest sector in the economy of India with a total market size in excess of US$ 13.1 billion. If we go by statistics, roughly around 73% of the Indian population lives in the rural areas- that’s a very large market. Many giant players, both foreign as well as domestic, are competing in the market with a view to capture it. The growing consumerism in India shows the rapid increase in Indian consumer purchasing power, it shows strengths and opportunity that lies in rural Indian markets especially for FMCG products. As a result of it I have opted to undergo the training in Marico Company a leading Indian FMCG Company having excellent distribution channel and deep rural reach in India. As the major part of the market is yet to be taped one need to evolve a set of strategies and there by plans to tape the potential Indian consumer market. To capture such a great opportunity, only good product and brand awareness will not be sufficient but proper distribution channel must be there With the world moving toward's globalization and the phenomena of LPG is touching each and every country and industry its effects are also there on Indian FMCG sector. Thus Companies need to constantly revive their 4P's strategy to be successful in the growing competitive Market's. Considering purely the fundamentals laid down by Philip Kotler is suggest that you need to have Right Product Mix (Product),Proper Pricing

Strategies(Pricing),Right

Promotion

Offers(Promotion)

and

Efficient

Distribution Channel (Place) to be a Successful Company. So in order to have a clear picture of all 4P's of Marico and especially for having efficient distribution channel, Satisfaction Level of Retailers on Various Products as well as other micro Parameter's plays a vital role in identifying the flaws and merits of Marico. As a result I have conducted the Market Research of 150 retailer's associated with marico who are giving annually business of more than Rs60,000 to the company and are having more than 3 products of the company. Along with retailer's I also meet 30 wholesellers to assess their satisfaction level which will definitely help Marico Ltd to improve its efficiency and thrive upon its strong Points.

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The project was conducted with the help of Marico Ltd. Presently company has two dif distribution channel, one for urban areas and another for rural areas. My primary objective for this project is to “Identify

the satisfaction level of retailer's& Wholeseller's in Rural Area” I have also identified the satisfactions level of retailers for different Brand/Products as well as also studied the Parameters for each brand, which clearly suggest what are the strength's of the company and where the company is lacking and what improvement it need to do in order to achieve high satisfaction level among the Retailer's who are Key in the Distribution channel of the Company. Approaching different intermediaries, I have collected important data using predesigned questionnaire. By applying different statistical tools I have found some useful information, which will definitely help the company to improve the effectiveness of the distribution channel. Tools used are Weighted Average, Chi Square and ANOVA Analysis While doing the project, I have to also work as sales management trainee, which gave me a great real time experience of marketing and selling in the rural market. The meeting with retailers showed me the complexities of Rural FMCG market and I learn a lot of skills from ground level sales people and also working with ASM of the Company. The Real time Experience that I got will definitely will help me immensely in future in the field of marketing...

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1.1 SECTOR IDENTIFICATION  If we go by statistics, roughly around 73% of the Indian population lives in the rural areas. That’s almost 12% of the world population.  There are 600,000 villages in India. 23% of all villages account for 63% of the total rural population. So you can contact 63% of 680 million or 700 million population by simply contacting 130000 villages - that’s a very large market  Since this theoretically constitutes a huge market potential, marketers will tend to throw in their hooks to catch the fish. Now with the urban demand hitting the plateau, rural markets are gaining more importance and we cannot ignore it.  Hindustan Lever’s sales turnover in rural market alone is over five thousand Crores - that’s a whopping fifty percent of the total sales turnover. So we can imagine how much potential the rural market has?  To get the maximum out of this opportunity, all organization needs to plan strategically.  What has happened from 1990 onwards is that advertisers spent a lot of on and by default they covered some rural markets as well. As a bonus, these advertisers started getting certain returns from the rural market - bonus of investment, which they had actually made for the urban market  What marketers and advertisers are today worried about is how to develop a scalable model of influencing the rural consumers’ mind over a large period of time and keep it going, given limited or reasonable budgets to make this happen.  Many companies are entering to the rural market and the potential of the market encourage me to do project work in the rural market.

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ABOUT FMCG SECTOR INDIA Markets all over the world have been on a roll in 2003 and the Indian bourses are no exception having gained almost 60% in 2003. During this period, while there are sectors that have outperformed this benchmark index, there are also sectors that have under performed. FMCG registered gains of just 33% on the BSE FMCG Index last year. At the macro level, Indian economy is poised to remained buoyant and grow at more than 10%. The economic growth would impact large proportions of the population thus leading to more money in the hands of the consumer. Changes in demographic composition of the population and thus the market would also continue to impact the FMCG industry. According to a survey by 2013, Indians under 20 are estimated to make up 33% of the population - and wield proportionately higher spending power. Means, companies that are able to influence and excite such consumers would be those that win in the market place The Indian FMCG market has been divided for a long time between the organized sector and the unorganized sector. While the latter has been crowded by a large number of local players, competing on margins, the former has varied between a two-player-scenario to a multi-player one. Unlike the U.S. market for fast moving consumer goods (FMCG), which is dominated by a handful of global players, India's Rs.460 billion FMCG market remains highly fragmented with roughly half the market going to unbranded, unpackaged home made products. This presents a tremendous opportunity for makers of branded products who can convert consumers to branded products. However, successfully launching and growing market share around a branded product in India presents tremendous challenges. Take distribution as an example. India is home to six million retail outlets and super markets virtually do not exist. This makes logistics particularly for new players extremely difficult. Other challenges of similar magnitude exist across the FMCG supply chain. The fact is that FMCG is a structurally unattractive industry in which to participate. Even so, the opportunity keeps FMCG makers trying.

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1 STRUCTURAL ANALYSIS OF FMCG INDUSTRY 1. The products often cater to 3 very distinct but usually wanted for aspects necessity, comfort, luxury. They meet the demands of the entire cross section of population. Price and income elasticity of demand varies across products and consumers. 2. Individual items are of small value (small SKU's) although all FMCG products put together account for a significant part of the consumer's budget. 3. The consumer spends little time on the purchase decision. He seldom ever looks at the technical specifications. Brand loyalties or recommendations of reliable retailer/ dealer drive purchase decisions. 4. Limited inventory of these products (many of which are perishable) are kept by consumer and prefers to purchase them frequently, as and when required. 5. Brand switching is often induced by heavy advertisement, recommendation of the retailer or word of mouth. 2. Marketing and Distribution 1. High Initial Launch Cost - New products require a large front-ended investment in product development, market research, test marketing and launch. Creating awareness and develop franchise for a new brand requires enormous initial expenditure on launch advertisements, free samples and product promotions. Launch costs are as high as 30-100% of revenue in the first year. For established brands, advertisement expenditure varies from 3 12% depending on the categories. 2. Limited Mass Media Options - The challenge associated with the launch and/or brand-building initiatives is that few no mass media options. TV reaches 67% of urban consumers and 33% of rural consumers. Alternatives like wall paintings, theatres, video vehicles, special packaging and consumer promotions become an expensive but required activity associated with a successful FMCG. 3. Huge Distribution Network - India is home to six million retail outlets, including 2 million in 3,160 towns and four million in 627,000 villages. Super markets virtually do not exist in India. This makes logistics particularly for new players extremely difficult. It also makes new product launches difficult 5

since retailers are reluctant to allocate resources and time to slow moving products. Critical factors for success are the ability to build, develop, and maintain a robust distribution network. 3 Competitions 1. Significant Presence of Unorganized Sector - Factors that enable small, unorganized players with local presence to flourish include the following: 2. Basic technology for most products is fairly simple and easily available. 3. The small-scale sector in India enjoys exemption/ lower rates of excise duty, sales tax etc. This makes them more price competitive vis-à-vis the organized sector. 4. A highly scattered market and poor transport infrastructure limits the ability of MNCs and national players to reach out to remote rural areas and small towns. 5. Low brand awareness enables local players to market their spurious look-alike brands. 6. Lower overheads due to limited geography, family management, focused product lines and minimal expenditure on marketing. 4 Problem present in Sector

PROBLEMS PREVAILING IN THE PARICULAR SECTOR  Low education level.  Less developed infrastructure.  In rural markets, brands are non-existent. They identify FMCG by three things -primarily by color, visuals of animals and

birds and by numbers. So a 333, 777, pila hathi, lal saboon -

these are the kind of terms with which they identify brands. They buy those three things: colors, numbers and visuals. There are number of cases which suggest that to sell brands in the rural market, it is necessary to simultaneously educate the consumers. For example, villagers were found using shampoo for brushing teeth, toothpaste for washing hair, and these are real life examples, not stories being created. They don’t know what these shampoo sachets stand for. So if you have to create brand communication, marketing efforts must be supported by education. 6

 Longer credit period requirement.  We need a set of people who understand the ethos of the rural market - people who understand the social fabric, who understand how the rural consumer interacts with the various categories because we believe that we do need a different level of understanding for tackling this market.  Rural retailers are far less specialized than their urban counterparts and carry a wider range of products. Since frequent delivery is not possible in their part of the world, they tend to carry only a single brand in each product category. And, usually, the brands that are first on the rural shelves become synonymous with product category and are difficult to dislodge.

ABOUT INDIAN HAIR OIL & HAIR CARE MARKET SIZE IN RUPEES

ABOUT MARICO MARKET SHARE

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INTRODUCTION OF COMPANY Marico is a leading Indian Group in Consumer Products and Services in the Global Beauty and Wellness space. Marico’s Products and Services in Hair care, Skin Care and Healthy Foods generated a Turnover of about Rs.13.6 billion (about USD 380 Million) during 2006-07. Marico markets well-known brands such as Parachute, Saffola, Sweekar, Hair & Care, Nihar, Shanti, Mediker, Revive, Manjal, Kaya, Sundari, Aromatic, Camelia, Fiancee and HairCode. Marico’s brands and their extensions occupy leadership positions with significant market shares in most categories- Coconut Oil, Hair Oils, Post Wash Hair Care, Anti-lice Treatment, Premium Refined Edible Oils, niche Fabric Care etc. Marico is present in the Skin Care Solutions segment through Kaya Skin Clinics (31 in India and the Middle East), the Sundari range of Spa skin care products (in the USA & other countries) and its soap franchise (in India and Bangladesh). Marico's branded products are also present in Bangladesh, other SAARC countries, the Middle East and Egypt. The Overseas Sales franchise of Marico’s Consumer Products (whether as exports from India or as local operations in a foreign country) is one of the largest amongst Indian Companies and is entirely in branded products and services. Marico was selected as one of the eight Indian companies in S & P's list of Challenger Companies from various nations, compiled globally by Standard & Poor's in June 2007. Marico has also won various other Awards such as the following:  3 top Awards instituted by CNBC-TV18, U21 Global and Watson Wyatt Worldwide, in following categories: India’s Employer of Choice for 2007 , Award for HR Excellence & Award for Best Employer in the Consumer Products and Healthcare Sector.  Gold Effie (2007) for its Corporate campaign and a Bronze Effie (2007) for Saffola.  Kaya - Best Retailer in the Beauty and Fitness category, India retail Forum (September 2007)

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 NDTV Profit - Business Leadership Award, FMCG Personal Hygiene Category (July 2007).  One of India's 10 best marketers (Business Today September 2006).  Brand Leadership Award at the India Brand Summit 2006 (September 2006).  Kaya - Retailer of The Year Award (for the 2nd consecutive Year) at India Retail Summit 2006.  The Gulf Marketing Review Award in the Middle East 2006.  Every month, over 70 Million consumer packs from Marico reach approximately 130 Million consumers in about 23 Million households, through a widespread distribution network of more than 2.3 Million outlets in India and overseas.  Marico’s focus on sustainable profitable growth is manifest through its consistent financial performance – a CAGR of 19% in Turnover and 19% in Profits over the past 3 years- while setting a record of several consecutive quarters of year on year growth- 32 for Profits and 28 for Sales.

VALUES OF MARICO INDUSTRY  Opportunity seeking  Bias for Action  Consumer Centric  Excellence  Innovation  openness & transparency  Global outlook  Boundary lessness Marico has a set of articulated values that were created at the inception of the organization, revisited and modified once in the year 1997 and lately in 2003, through the collective wisdom of Mariconians. The values since then have been an integral part of the workingofallMariconians. Our values are preferred practices that are employed in pursuit of our Business

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Direction. They sum up the philosophy that will build the culture to drive business growth.

How Marico structured A Flat Structure: At Marico, we are an organisation, which is flat with only five levels of reporting between the Managing Director and an operator on the shop floor. We believe that a flat structure helps us in being more responsive to the environment while providing enriched roles for our members. Our structure defines clear roles and supporting relationships but is by no means rigid. Keeping in mind the fast and ever changing business environs, Marico's structure is dynamic and constantly evolving.

Profit Centers: In order to provide focus to its business operations, Marico has organised its businesses into the following business segments or profit centers: Consumer Products, comprising the operations of Marico Limited and Marico Bangladesh Limited. This division manufactures & markets Marico's 10 leading consumer product brands like Parachute, Saffola, etc.Aesthetics Services, comprising operations of Kaya Skin Clinics under the banner of Kaya Skin Care Ltd. Kaya Skin Clinics offer US FDA approved scientific dermatological procedures that are customized to suit the Indian skin. Global Ayurvedics, comprising the operation of Sundari LLC in the US. Sundari markets the Sundari range of Ayurvedic skin care products in the US & other parts of the world. All the above profit centers have their dedicated marketing teams, distribution channels, sales force and backroom facilities.

Finance: The company is strongly supported by the Finance Division, which handles the legal, treasury, tax, control systems and management information support. Additionally, every profit center has its own dedicated finance cell.

HR: Equal support comes from our HRD team, which expends its energies, formulating and building strategies to build a stable and high - talent organisation.The innovations 11

and the quest for excellence at Marico continue unabated. Even as the success stories continue, the focus from the consumer never shifts.

MARICO'S BUSINESS DIRECTION – 2010 We commit ourselves to improving the quality of people's lives in several parts of the world, through branded fast moving consumer products and services in Personal and Health Care sectors. We shall offer brands that enhance the appeal and nourishment of hair and skin through distinctive products and services based on the goodness of coconut, other natural substances and the underlying science of hair care and skin care. We shall make available brands that contribute to healthy living, through, both products drawn from agriculture offered in natural or processed forms, and services. We shall develop, in parts of the world beyond the Indian Subcontinent, a franchise for our branded products and services. We shall aim to be a leader in each of our businesses through heightened sensitivity to consumer needs, setting up of new standards in the delivery and quality of products and services and processes of continuous learning and improvement. We shall share our prosperity amongst members, shareholders and associates, who contribute in improving our equity and market value. We shall acquire the stature of a friendly corporate citizen, contributing to the betterment of neighborhood communities, where we are significantly present.

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MARICO BRAND'S PROFILE MARICO BRAND PORTFOLIO

Hair Care Category

Hair Oil Category

Parachute

Hair & Care

Edible Oil Category

Other Products

Shanti Amla

After Shower

Silk & Shine

Mediker

Saffola Oil

Revive Instant Starch

Sil Jam

Sweekar Oil

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Ther apies

About marico brand MARICO PRODUCT PORTFOLIO

Parachute

Hair & Care

Parachute Regular/Standard

Silk & Shine

Saffola

Sweekar

Medik er

N ihar

Revi ve

Saffola Gold Shanti Amla Hair Oil

Parachute Advanced Saffola Tasty Blend Parachute Jasmine Saffola Kardi Parachute after Shower Saffola Salt Parachute Therapie

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Product PROFILE (1) PARACHUTE Parachute is premium edible grade oil, a market leader in its category. Synonymous with pure coconut oil in the market, arachute is positioned on the platform of purity. In fact over time it has become the gold standard for purity. From a loosely available commodity to a path-breaking brand, Parachute pioneered the switch from coconut oil sold in tins to plastic. ⇒ Flip Top Cap for Parachute bottles to enhance the safety and protect the purity of Parachute ⇒ Easy Jar of Parachute to facilitate usage especially during winters ⇒ Parachute Mini - a bottle shaped small pack being sold at an MRP of Re. 1 ⇒ 20 ml Parachute - a Rs 3 SKU that enables loose oil users to upgrade to Parachute.

1.2 PARACHUTE ADVANCED Parachute Advansed refined hair oil (with fruity perfume) is the latest introduction from Marico. Parachute has always strived to remain relevant to every new generation. It is a brand that is backed by years of trust and heritage and it aims at using the same equity to appeal to the young Indian consumer. Launched in 2004, the Parachute Advansed refined hair oil comes packed in a sleek looking, light blue translucent bottle

1.3 PARACHUTE JASMINE Parachute Jasmine is a light, fragrant oil that can be used everyday to nourish and sytle your hair. It has the goodness of pure coconut oil and the essence of fragrant jasmine to give you healthy, non-sticky, free flowing and fragrant hair. Parachute

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Jasmine is the most successful new brand launch from Marico's stable in the recent past. The strong product proposition backed by insightful communication, strong distribution and activation support has seen dynamic growth with 63% CAGR in the past 4 years. It is now a strong No. 2 player in the growing VACNO (Value Added Coconut Oil) Sensorial sub-category with a 30%* market share. (*A.C Nielsen Nov 03).

1.4 Parachute After shower Hair Cream Parachute After shower Hair Cream for men, is a hair styling cream that can be used daily to style your hair. It has Aqua Moisturizers & since it is made in an oil-in-water emulsion, it is completely non-sticky. Parachute After shower Hair Cream contains coconut milk proteins, which keeps hair nourished. The need for males to look good has never been more important. More and more males in India are realizing the importance of “great looking hair” & want a product that can be used to “style hair daily.” Parachute Aftershower Hair Cream was launched in Mumbai in March 2003, as a prototype (test-market). Within 2 months of its launch in Mumbai, it grabbed an impressive 28% market share, which it has increased (October'03 %MS is 36%). It was launched pan India in August 2003. Within 3 months of its launch (October 2003), it has touched a 23% market share of the All India hair cream market

1.3PARACHUTE THERAPIE Parachute Therapie Hair Fall Solution is a unique scientific formulation from Marico, developed after 6 years of intensive research, product development and consumer trial. It is completely safe to use and helps control hair fall naturally. All that is to be done is to apply it thrice a week, and leave it on overnight. 77% of users have reported reduction in hairfall in 43# days with the use of 1 bottle. 27% users also reported softer hair.

(2) HAIR & CARE Marico’s Hair & Care, a pleasantly perfumed non-sticky hair oil is a strong brand in its category. It is positioned on the platform of being the lightest perfumed hair oil offering both “Style & Nourishment”. Hair & Care is upto 30% non sticky than any other hair oil & is enriched with “Herbal Proteins”, which nourishes hair with their natural goodness. Herbal Proteins are extracted from Neem & Tulsi, a process

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patented by Marico

(3) SHANTI BADAM AMLA Launched in April 2003, Shanti Amla marks Marico's successful entry in the Amla+ Hair Oil market. It is launched on the platform of "Goodness of Badam with Amla".

(4) Oil of Malabar Oil of Malabar is premium quality edible grade coconut oil. This brand is one of Marico's recent acquisitions, having been bought in November 1999. Oil of Malabar, as the name suggests, is positioned on purity - as the oil from the land of coconuts.

(3) Mediker Mediker, a three-decade-old brand was acquired by Marico from Procter & Gamble, in July 1999, in the shampoo format. Mediker is a brand for treating lice and a market leader in its category. Mediker today has three products in its portfolio: Mediker Anti Lice treatment, Mediker Anti Lice Oil and Mediker Plus Anti Lice Oil

(6) REVIVE INSTANT STARCH Revive is an Instant Cold Water Starch, the ONLY product of its kind. Formulated with the latest International technology to give clothes uniform, strong starching, it is uniquely positioned on the platform of making your 'Clothes Look Like New".

(7) Sweekar (Refined Sunflower Oil) Sweekar is a national brand comprising of Refined Sunflower Oil. Sweekar has become synonymous with good quality light edible oil. It is positioned as a light and healthy cooking medium.

(8) SAFFOLA  Saffola Kardi Saffola is made from the finest quality natural kardi seeds. Kardi oil has the highest amount of Polyunsaturated Fatty Acid amongst all vegetable oils. Saffola when taken 17

as a part of a low saturated fat diet may help reduce cholesterol levels. Lowering of cholesterol is known to reduce the risk of heart disease (C.H.D).  Saffola Gold - Dil Ko Rakhiye Jawan Saffola Gold has the internationally proven formula of 70% Rice Bran Oil (RBO) and 30% of Safflower Oil (Kardi oil). This has also been proven effective in Indian research.

(9 ) Sil Jam Sil is a processed food brand. It has a wide range of exciting products such as Jams, Sauces, Baked Beans, Chinese Vinegar, Sweet Corn Soup and Mayonnaise. Sil stands for products that offer "Lip-Smakin' Goodness".

BRAND OF COMPANY AND CUSTOMER FOCUS BRANDS PARACHUTE PARACHUTE ADVANCED HAIR & CARE

TARGETED CUSTOMER'S • •

Primary Target Women Of All Age's Young Girls (College & School Going)

•

Appealing To Both Men & Women of All Age's

• SHANTI AMLA • SILK & SHINE • AFTER SHOWER • MEDIKER • SWEEKAR SAFFOLA REVIVE

Primary User the Young Age Group Customer Looking for Value for Money (H.OIL+Badam) Primary Target Female Of age 18 – 34 (SEC, AB) Primary Target Young Males 18 – 34 (SEC.AB)

•

Young Children Age Group 3-13 (Due to Lice Problem) Primary Target Housewives (Due to Economic+Healthy

•

Life for Family) All Health Conscious Consumers (Specially for Heart

•

Patient's) Housewives of Urban Area (Higher & Middle Class).

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3.1 VISUALIZATION OF HOW WORK IS CARRIED OUT

Problem Statement

Formulating Research Objective Research Design

Data Collection Design Sampling Plan

Data Collection by Field survey Processing & Analyzing Interpretation

Conclusion & Suggestions

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1) PROBLEM STATEMENT I was given an opportunity to work with Marico as a Sales Management trainee during my winter project that lead me to learn a lot and identify the Problem, especially in their rural distribution line. To have effective distribution, especially for FMCG Company like Marico it should take utmost care of the Intermediaries involve in the process of moving the product from the Production House to Ultimately the End User. For this a company need's to have satisfied Intermediaries (i.e. Stockiest,Wholeseller's & Retailer's). Thus in order to assess their satisfactions level on different parameter's I have undertaken a Market research with Objective of Assessing the "Satisfaction Level of Retailer's & Wholeseller's" for the area of Sanjan,Vapi,Udwada & Killa Pardi along with some small town's in rural area's. The Following factors lead me to do so: •

Sales of Rural Area was Slowly Decreasing, Per Retailer Business (Per Annum) was also Declining Marginally.

• During my training period I Personally felt that retailers were not completely satisfied by marico on various parameter's • Company wants to Identify it Flaws in Delivery, Product Defects,& many other factors specified in Questionnaire. • Company wants to know the most preferred Trade Promotion offer by the retailers.

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2) RESEARCH OBJECTIVE: For any fmcg company to have efficient distribution channel needs to have satisfied intermediaries, so that they hold with company products and provide them to end user. Thus I selected my research objective as:

"Identifying Satisfaction Level's of Retailers & Wholeseller's" Sub Objectives are as under: •

To Identify the area of service in which company needs to Improve.

•

To identify the Strengths/Weakness of Company delivery system in rural area.

•

To know whether Wholeseller is able to satisfy the retailers need in their specific area or not.

•

To help the Company in designing proper strategies for rural area.

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3 research design 3.1 Purpose of study: - Descriptive The objective of the study is that "Identifying Satisfaction Level's of

Retailers & Wholeseller's"The study focuses on the satisfaction level for different products. As well as on other parameter's such as Commission, Delivery mechanism, Sales Force, Credit Period.etc.which are very crucial in assessing the satisfaction level and for identification of strength's of marico and flaws where the company need's to be improve. However, study may not focus why this factors effects the individual’s satisfaction level regarding different parameters and exactly up to what degree.

3.2 Degree of research question crystallization: - Exploratory study As per my objective of the research, the research questions would try to find out the current situation in the market regarding the satisfaction level of retailers and Wholeseller's. Moreover, the hypothesis is not pre-defined here, but it would be define during the study. Here research problem is also general.

3.3 Research control of variables: - Ex post facto design I am reporting what has actually happened in the market and what is still happening in the market specifically in my sampling area. I personally do not have any control on responses and variation in the sense of being able to manipulate them. I have also not influence any variables, to do so to introduce bias on my side.

3.4 Time dimension: - Cross-sectional Here the study will be carried out once and it would represent a snapshot of one point in time. Time duration, in which study must be competed, is the limitation and that is why the cross-sectional is the best alternative.

3.5 Method of data collection: - Interrogation & Personal Interview Based on my initial observation, I have prepared a questionnaire to collect the response from retailers and whole sellers as primary data. Versatility of the questionnaire will help to cover almost all related factors impacting the satisfaction of 22

the target sample. Interrogation takes less time than observation and gives information that is more purposeful .

3.6 Topical scope:- Statistical study This study attempts to capture a population’s characteristics by making interference from a sample’s characteristics. Hypothesis will be tested quantitatively. Generalization about findings will be presented based on representative ness of sample.

3.7 Research environment: Field study. Survey is the main part of the study and primary data collection. So that the study will be carried out in field, I have gone to the market and interviewing retailer's and Wholeseller's in the area of Sanjan,Bhilad,Sarigam,Udwada,Vapi,Killa Pardi and other interior villages associated to this towns.

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4 DATA COLLECTION & DESIGN 4.1 Data source: Primary source To satisfy the objective of the research it is necessary to get the response from the respondents, which act as primary source of data. I have collected Primary data by personally surveying Retailer's & Wholeseller's in the sampling area specified. 4.2 Approach: Interview (Personal Contact) 4.3 Instrument: Questionnaire •

Questionnaires Designing:

It is the most crucial part of any market research. I have taken a due care in designing the Questionnaire for my research. I have meet more than 200 retailers during my training period in order to learn the Order taking Mechanism, POP Displays, Competitive Products, Retailers Attitude towards sales force etc. Even from Area Sales Manager I identified various Parameters to be listed in my questionnaire's have taken utmost care in deciding right question, correct sequence, what should be wording of each & layout of questionnaire as a whole. •

Type of Questionnaire: Structured Non Disguised

I have arranged the questions in a specific order to get the facts and the interviewer be asked to response strictly in accordance with a pre-arranged order. The objective of the survey was disclosed every time before getting the response from the respondent . •

Type of Question: Close Ended

•

Number of questions: 11 (For Retailer's) 4 (For Wholeseller's)

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5 SAMPLING PLAN Sampling Area

:Sanjan to Killa Pardi (Rural Line)

Sample Population

: Retailer's and wholesalers of the south Gujarat rural Distribution Line.

Sampling Area

: Sanjan to Killa Pardi (Rural Line)

Sample Size

: 150 Retailers + 30 Wholeseller

Method Of Data Collection

: Personal Interview

Sampling technique

: Convenience Sampling

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QUESTIONNAIRE ANALYSIS (of retailers) Q1). From how long you are associated with the company? < 5 years

5 -10 years

10-15 years

>15 years

CHART 1 Association Of Retailers with Company ASSOCIATION WITH COMPANY 80 70 60 50 Responses 40 30 20 10 0

71

13 <5

39

27 5--10

10--15

> 15

No Of Years

Fin din gs: From the above analysis it has been fond that majority of the respondents (i.e. Retailers) 47% of them are associated with the company from long term i.e. 10 – 15 Years, 26% of them are associated from more than 15 yrs,18% of them since 5-10 yrs and 9% of them say less than 5 years.

Int er pre ta ti on •

Company is having retailer's Base that is associated with company since decades that shows company is having a good relationship with the intermediaries.

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. Q2) Are you satisfied with the performance of Companies Product's/Brands in the market? Indicate (1: Highly Satisfied & 5: Highly Dissatisfied) Product's/Brand's 1 2 3 4 5 Weighted Ranking Score Parachute Hair Oil 54 89 0 7 0 640 1 Hair & Care Oil 33 97 6 14 0 599 4 Shanti Amla Oil 0 23 4 115 8 342 7 After Shower 7 20 94 19 10 445 6 Cream/Gel Silk & Shine. 23 118 5 4 0 610 3 Saffola Edible Oil 28 117 3 2 0 621 2 Sweekar Edible Oil. 11 93 3 37 6 516 5 CHART- 2 Satisfaction of Retailers for Various Brands's of Company 750

640

610

Weighted Score

604

625

516 450

Parachute

Hair & Care

S.Amla

445 A.Shower

342

Silk & Shine

Saffola

Sweekar

150

Brands

Fin din gs: From the above analysis it was analyzed that majority of the marico products are perceived to be satisfactory by the retailers. Parachute has got weight of 640, Hair & Care has got total points as 599,Saffola 621 which are above the average score. Where as Shanti Amla has got 342, after shower has got 445 and Sweekar oil has got 516 that is above the average score.

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Int er pre ta ti on : •

Retailers are satisfied with Parachute,Hair& Care & Saffola & Sweekar

•

Retailers are mostly neutral for the New Product Parachute after shower as it is still new in the market

•

Retailers are dissatisfied with S.Amla oil. But the score of Shanti Amla is lowest it means that majority of retailers are dissatisfied with the Product.

•

The ranking assigns shows the satisfaction level of Retailers where Parachute is ranked 1st based on weighted score & Shanti Amla 372 at 7th ranked INDIVIDUAL BRAND PERFORMANCE EVALUATION ON DIFFERENT PARAMETER'S (Weighted Average)

Rank

Points 1 2 3 4 5

5 4 3 2 1

Max.Score 750

H.Satisfied H.D 750

Satisfied 600

Average Score

Min. Score

450

150

Neutral 450

Dissatisfied 300

150

(Evaluation: If the Score of more than 3 Parameter's is less than average score than it is Dissatisfactory Brand and vice Versa) 29

1. PARACHUTE (Score 640) Rating (1:V.Good & 5: Very Bad). Parachute Hair Oil Products Attributes 1 2 3 Packaging 123 14 Product Varieties 29 114 Commission 20 126 Trade Promotion Offer's 23 118 Pricing 23 116

4 4 0 0 0 0

5 9 7 4 9 11

0 0 0 0 0

CHART – 3 Satisfactions of Retailers for Parachute Brand Satisfaction Level 750

701

Total points

615

612

605

601

450

150 Total points

Packaging P.Varities Commisio T.P Offers 701

615

612

605

Pricing 601

Attributes

Fin din gs: From the above analysis it has been found that Parachute was rated as satisfied brand by the retailers. The score of different Parameters is above the average score.

Int er pre ta ti on : •

Retailers are satisfied with brand Parachute.

30

•

Overall Score of Parachute in Q1 was also above average and it score on all parameters is also above average. Thus it can be said that it is a successful brand.

2. HAIR & CARE. (Score 599) Rating (1:V.Good & 5: Very Bad). Parachute Hair Oil Products Attributes 1 2 3 Packaging 27 112 6 Product Varieties 0 0 12 Commission 33 108 6 Trade Promotion Offer's 22 116 7 Pricing 27 109 6

4

5 5 128 3 5 8

0 10 0 0 0

CHART – 4 Satisfactions of Retailers for Hair & Care Brand Satisfaction Level 750 621

Total points

611

605

605

450 302 150 Total points

Packaging

P.Varities

Commision

T.P Offers

Pricing

611

302

621

605

605

Attributes

Fin din gs: From the above chart it could be analyzed that retailers are satisfied by Hair & Care brand on almost all attributes as their score is above average score, but retailers are not satisfied with product varities in hair & care as it score is less than average score.

Int er pre ta ti on :

31

• •

Hair & Care is a brand by which majority of retailers are satisfied. Retailers are not satisfied with product varities.Hair & Care has only 2 variants thus retailers want more variant in the Product.

3. SHANTI AMLA (Score 342) Rating (1:V.Good & 5: Very Bad). Parachute Hair Oil Products Attributes 1 2 3 Packaging 0 19 7 Product Varieties 0 10 10 Commission 23 112 6 Trade Promotion Offer's 112 33 0 Pricing 15 17 13

4

5 120 117 9 5 101

4 13 0 0 4

CHART – 5 Satisfactions of Retailers for Shanti Amla Brand Performance Evaluation of ShantiAmla

Total points

750

450

150 Packaging P.Varities Commison T.P.Offers Total points

341

317

599

702

Pricing 388

Attributes

Fin din gs: From the analysis of Q2 it was identified that S.Amla had the least score and retailers were dissatisfied with the Brand. The analysis here clearly shows that retailers are dissatisfied with Packaging & Product Varities & Pricing as their score is less than average score, where as they are satisfied with commission, trade promotion offers.

32

Int er pre ta ti on : •

Shanti Amla is poor at Packaging and in terms of Product Variants

•

Commissions & Trade Promotion Offers are in accordance with retailers expectation.

4. AFTER SHOWER (Score 445) Rating

(1:V.Good & 5: Very Bad). Parachute Hair Oil Products Attributes 1 2 3 Packaging 0 19 7 Product Varieties 0 10 10 Commission 23 112 6 Trade Promotion Offer's 112 33 0 Pricing 40 78 13

4

5 120 117 9 5 15

4 13 0 0 4

CHART – 6 Satisfactions of Retailers for Parachute After Shower

Performance Evaluation of AfterShower

Total points

750

450

150 Total points

Packaging P.Varities Commisio T.P Offers 618

423

350

508

Pricing 430

Attributes

Fin din gs: From the analysis it was found that retailers are satisfied with packaging & trade promotion offer for this brand, But they are dissatisfied with commission & product varities in the brand. Where as for Pricing still they are Neutral

In te rpr et at io n:

33

•

Packaging & Trade Promotion Offers are satisfactory for retailers for the Brand

•

Product Varities & Pricing are the attributes on which major of the are still neutral as this product is in introductory stage, retailers cannot judge it on parameters.

•

Retailers are Dissatisfied with the Commissions provided to them there seems some problem with commission system of company on this Brand

5. SILK & SHINE (Score 610) Rating

(1:V.Good & 5: Very Bad). Parachute Hair Oil Products Attributes 1 2 3 Packaging 27 118 Product Varieties 0 0 Commission 30 112 Trade Promotion Offer's 113 30 Pricing 10 124

4 5 0 6 3 6

5 0 0 2 4 5

0 0 0 0 5

CHART – 7 Satisfactions of Retailers for Silk & Shine Performance Evaluation of Silk&Shine

Total points

750

450

150 Total points

Packaging P.Varities Commisio T.P Offers 622

0

620

702

Pricing 579

Attributes

Fin din gs: From the analysis of Q2, it was analyzed that retailers were satisfied with the brand/product silk& shine as it got score more than average.Furthur the analysis of Brand on different attributes also shows high satisfaction level of retailers as weighted score of all attributes is more than average score. Silk & Shine is not having any product variant thus the responses are nil on this attribute.

34

Int er pre ta ti on : •

Silk & Shine is rated as satisfactory Brand by majority of Retailers.

•

Trade Promotion Offers given on this brand is Highly Satisfactory for retailers.

•

Packaging & Commissions given is also good that contributes to success of brand and retailers satisfaction. 6. SAFFOLA (Score 621)

Rating

(1:V.Good & 5: Very Bad). Parachute Hair Oil Products Attributes 1 2 3 Packaging 30 113 4 Product Varieties 28 116 4 Commission 7 22 6 Trade Promotion Offer's 0 10 18 Pricing 10 121 4

4

5 3 2 107 94 9

0 0 8 28 6

CHART – 8 Satisfactions of Retailers for Saffola Performance Evaluation of Saffolae

Total points

750

450

150 Total points

Packagin P.Varities Commisi 620

620

363

T.P

Pricing

310

570

Attributes

Fin din gs: From the analysis of weighted score for each attribute it has been identified that retailers are satisfied with Packaging, Product Varities & Pricing of the Brand as their score are above the average score. But they are dissatisfied with Product Varities in the brand as well as not satisfied with the commission given to them on this brand.

Int er pre ta ti on : •

Saffola is a Premium Brand of Marico and retailers are satisfied with the Brand. 35

•

Being the Market leader in the segment Commissions & Trade Promotion Offers are less as a result it had contributed to dissatisfied retailers but not a Major Problem.

7. SWEEKAR (Score 516

)

Rating

(1:V.Good & 5: Very Bad). Parachute Hair Oil Products Attributes 1 2 3 Packaging 23 108 11 Product Varieties 12 120 7 Commission 4 23 9 Trade Promotion Offer's 0 0 17 Pricing 0 12 4

4

5 8 11 103 106 103

0 0 11 27 31

CHART – 9 Satisfactions of Retailers for Sweekar. Performance Evaluation of Sweekar

Total points

750

450

150 Packaging P.Varities Commison T.P.Offers Total points

596

583

356

290

Pricing 297

Attributes

Fin din gs: By analyzing the W.Score for each parameters it could be analyzed that the score for Packaging, Product Varities &, Where as score for T.Poffers and Pricing is below the Average score and for commissions it can be said that they are not fully satisfied.

Int er pre ta ti on : •

Retailers are satisfied by Packaging,& Product variants in the Brand.

36

•

For commission it could be analysed that they are not satisfied nor disstaisifd but the score suggest that commission given is less.

•

T.P offers are perceived to be poor according to retailers

•

Pricing of the product in segment is also not good according to retailers

Q3). Are you satisfied with the services provided by the company? Highly Satisfied

Satisfied

Dissatisfied H.Satisfied Satisfied Neutral Dissatisfied H.Dissatisfied

Neutral

Highly Dissatisfied

0 32 44 72 2

CHART – 10 Satisfactions of Retailers for Services provided by Marico.

H.Dissatisfied 2 72

Critieria

Dissatisfied 44

Neutral 32

Satisfied H.Satisfied 0 0

20

40

60

80

Responses

Fin din gs: From the analysis it has been identified that majority of retailers (i.e.) 49% are not satisfied with the services provided by the company. Only 21% are satisfied, Where as 29% of them are neutral and not able to judge the services.

Int er pre ta ti on : •

Satisfaction Level is Poor for the Services provided by the Company.

37

•

Neutral responses are unable to judge services exactly, but if proper care if not take to upgrade service in almost all areas than they can easily be converted into dissatisfied retailers.

Hypothesis Test: The null hypothesis is that, “Company Has Claimed That 75% of retailers are either satisfied or neutral with the services provided by the company.” H0: p >= 75% H1: p< 75%. It is one-sided, left tail test so the table value of Z is -1.64. Here I have taken P=75% or 0.75, So my Q is 25% or 0.25

Standard Error =

√pq / n

√

= 0.75 * 0.25 / 150

S.E. = 0.035 Z = (p – Ph0)/SE = (0.51 – 0.75)/0.035 = -6.857  t cal = -6.875  t tab = -1.64

38

Calculated value of Z is less than table value, so the null hypothesis is rejected. So, alternate hypothesis holds true, hence we can say that percentage of satisfied retailers with the services provided by the company is less than 75 %.

39

Q4) What is your opinion regarding the Sales Force Of the Company? Highly Satisfied Dissatisfied H.Satisfied Satisfied Neutral Dissatisfied H.Dissatisfied

Satisfied

Neutral

Highly Dissatisfied

8 109 8 23 2

CHART – 11 Satisfactions of Retailers for Sales Person of Company 120 100 80 60

109

40 20 0

8 H.Satisfied

8 Satisfied

Neutral

23 2 Dissatisfied H.Dissatisfied

Fin din gs: From the above analysis it has been identified that almost 75% of retailers are satisfied with the sales person/force of the company. And marginal proportions of them 16% are dissatisfied by sales person/force of the company.

Int er pre ta ti on : •

Company is having good sales people in its rural line to deal with the retailers. Sales force of the company is good.

40

Q5) What is your opinion regarding the sales person visit in a month? Criteria for Visit in Month Inadequate Adequate. Regular. Total

Low 22 20 0 42

Level Of Satisfaction High Total 0 25 12 107 12 18 24 150

Medium 3 75 6 84

CHART – 12 Satisfactions of Retailers in reference of Sales Person Visit 80

75

70

Responses

60 50

Inadequate

40

Adequate Regular

30 22 20

20 12

10 0

0 Low

6 3 Level Of Satisfaction Medium

0 High

Fin din gs: From the above responses it could be analyzed that 71% retailers say that sales person visit is adequate for them, where as 17% of them say its inadequate and 12% of them say that sales person visit is Inadequate for them.

Int er pre ta ti on : •

Majority of Retailers are satisfied by the visit of sales person in a month.

Question: Is there any relation between Monthly Visit and Level of satisfaction of Retailers. (ANNOVA TEST) NULL HYPOTHYSIS: H 0 = There is no relation between Monthly Visit and satisfaction level of Retailers H1 =There is direct relation between Mothly Visit and satisfaction level of Retilers

41

Q6). Evaluate the delivery system of Company on following Parameter's TIMELINESS OF ORDER Very Timely

Very Delay ACCURACY OF ORDER

Highly Accurate

Least Accurate COMPLETENESS OF ORDER

Fully Completed

Partially Completed

Parameter for 5

Delivery Timeliness 2 Accuracy 0 Completeness 0 Parameters Timeliness Accuracy Completeness

4 129 108 106 Max.Weight 750 750 750

Weight Attached to Each 3 2 15 31 25

1

2 9 16

Min.Weight 150 150 150

0 0 1 Actual Weight 595 (Satisfied) 574 (Satisfied) 372 (Dissatisfied)

CHART – 13 Evaluation of Delivery System & Retailer Satisfaction Level

750

Region of Satisfaction

595

574

450 TIMELINESS

ACCURACY

COMPLETEDNESS

372

Region of dissatisfactio n 150

Fin din gs:

42

Total Weight Achieved by the Delivery on Timeliness & Accuracy Parameter is above the average score. Where as weighted score of Completeness as a Parameter is less than the average score of 450.

Int er pre ta ti on : •

Retailers are satisfied with the delivery system of the company on Timeliness & Accuracy of Delivery

•

The score of Completeness Parameter shows that retailers are not satisfied with the Completeness of the Order and Delivery given to them. Most of them revealed that many of times either of the Brand/Products is not delivered according to ordered or they are delivered in fewer Quantities and in some cases may be even more than the ordered quantity. It shows some problem in delivery mechanism of the company and poor Coordination among the Intermediaries involve in the Process.

Q7) Are you satisfied with the current commission system of the company? 43

Highly Satisfied

Satisfied

Dissatisfied

Highly Dissatisfied

H.Satisfied Satisfied Neutral Dissatisfied H.Dissatisfied

Neutral

0 8 2 103 37

. CHART – 14 Commission System & Retailers Satisfaction

25%

0% 5% 1% H.Satisfied Satisfied Neutral Dissatisfied 69%

H.Dissatisfied

Fin din gs: From the above analysis it has been found that almost 69% of retailers are dissatisfied and 25% are Highly dissatisfied with the commission system of Company in general. Satisfied retailers are very less in reference to commission system.

Int er pre ta ti on : •

There is a serious and major problem with the commission system of the company.

•

Large chunk of them are dissatisfied & even alarming is the % of highly dissatisfied retailers. If proper thought and care might not be taken for this issue by the company, the retailers may stop selling the companies brand/products, if a case than would be a huge loss to company in the future.

•

Through Interrogation it was identified that Marico Commission is less as compared to some local & Unbranded Players that is main reason for dissatisfaction among the retailers.

44

Q8). How Often Do You find that Products are supplied to you are of older date's? Mostly Sometimes Rarely Mostly Sometimes Rarely Never

Never 0 9 84 57

CHART – 15 Frequency of Supply of Older Date Products.

84

Rarely

Sometimes

0

Mostly

9

No Of Times

57

Never

0

20

40

60

80

100

Responses

Fin din gs: Almost 56% of responses says that products supplied to them from the company are of older date but this happens rarely according to majority of them.38% say it happens never.

Int er pre ta ti on : •

Retailers are satisfied by the product delivered to them in terms of manufacturing date.

•

Though not a major one 84 responses in rarely category shows some problem in dispatching the right goods

45

Q9). As per you what is the proportion of defective products in total quantity supplied? 0 - 2% 2 - 4% 4 – 6% proportions 0 - 2% 2 - 4% 4 - 6% > 6% Total Responses

>6%

no. of respondents 99 40 11 0 148

CHART – 16 Frequency of Supply Of Older Date Products proportion of defective products 4%

6%

0%

90%

0 - 2%

2 - 4%

4 - 6%

> 6%

Fin din gs: Majority of retailers 65% of them tells that proportion of defective products supplied to them in a year is less than 2%,where as 30% of retailers say the proportion is aggregate about 2-4% of total business with the company, Only 5% of them say that its between 4to6% defective.

Int er pre ta ti on : •

Actually, seeing to the proportion of defective products in total quantity supplied is not so high.

•

It shows the Effectiveness of Product Handling & Delivery Mechanism and Quality Standard as well as Packaging standard that marico thrive upon.

46

Hypothesis Testing Ho= Proportion of Defective Products is less than 3% of material supplied in a year H1= Proportion of Defective Products is more than/equal to 3% of material supplied in a year µHo < 3 % (Null hypo) µH1 >= 3 % (Alt Hypo) Significance level: 5 % It is one- tail test.

Proportions

X

f

d

fd

fd2

0- 2 %

1

9 7

2

-194

388

2- 4 %

3

4 4

1

-44

44

4- 6 %

5

7

0

0

0

>6 %

6

0

1

0

0

Σfd =238

Σfd2 =432

X = A + Σ fd/N = 5 - 1.58 = 3.39 σ = sqrt [Σfd2/n – (Σfd/n)2] = 0.577 S.E. = 0.047 Ζ = (x -µ)/ S.E = (6.58-3)/0.047 = 8.263  z cal = 8.263  z tab = 1.645 Calculated value of Z is more than table value, so the null hypothesis is rejected. So, alternate hypothesis holds true, hence we can say that proportion of defective product is more than or equal to3 percent of total material supplied.

47

Q10). Which are the trade promotion schemes that you like the most? Rank Them 1 to 5. Gift articles

Coupons/contest

Cash discounts Bonus Packs Criteria 1 2 Gift articles 12 Coupons/contest 8 Cash discounts 91 Tours 19 Bonus Packs 20 Total 150

Tours 3

4

6

70

87

22 24 9 25 150

27 15 15 150

5

Total

50 21 8 8

63 150

12 12 0

150 150 150 150 150

99 27 150

750

CHART – 17 Ranking of Different Trade Promotion Schemes Offered to Retailers Ranking for Different Trade Promotion Offers

20

91 19

15 25

15

87

27

8 70

1 2

50

Bonus packs

8 21

Tours

0

3 Rank

Cash discounts

12 4

27

8

22

6

99

9 24

12

63

Coupons/Contests

12 5

Gift articles

S. P activities

1

2

3

4

5

12

6

70

50

12

Coupons/Contests

8

87

22

21

12

Cash discounts

91

27

24

8

0

Tours

19

15

9

8

99

Bonus packs

20

15

25

63

27

Gift articles

Fin din gs:

48

From the above responses and ranks assigns it can be identified that gift articles rank 3rd, Coupons & Contest as 2nd, Cash discount as 1st, Tours as 5th and Bonus Packs as 4th by majority of responses as compare to total responses for each option

Int er pre ta ti on : •

Most Preferred Trade Promotions by retailers is Cash Discount given by the company.

•

Coupons/Contest is also preferred but astonishingly retailers least preferred Tours as measure of trade promotion.

49

Q11). Evaluate marico on following Parameters's/Activities? (1: V Good & 5: Very bad) Activities 1 POP Attractiveness

Order Taking Billing/documentation Credit Period Alloted. Market Performance P.Margin Clains Settlement Rank 1 2 3 4 5

Ranking 3 4

2 18 36 0 0 10 0 0

107 87 53 0 93 22 0

14 16 20 10 24 10 0

5 9 11 27 117 17 49 127

2 0 23 23 6 20 23

Total Responses 150 150 123 150 150 101 150

Points 5 4 3 2 1

Activities

Max.Score 750 Order Taking 750 Billing/documentation 615 Credit Period Alloted. 750 Market Performance 750 P.Margin 505 Claim Settlement 750 POP Attractiveness

Min Score 150 150 123 150 150 101 150

Average Score 450 450 369 450 450 303 450

Actual Score 580 598 349 287 534 236 277

Hundreds

7.5

4.5

1.5 W.Score

PoP Attrac. Order Taking 580

598

Bill/Doc

C.Period Alloted

349

287

M.Performan Claim Profit Margin ce Settlement 534

236

277

50

Fin din gs: •

From the above responses it could be analyzed that POP attractiveness' has got score of 580 that is above the average score.

•

Order taking mechanism of Marico Company has also got score of 598 above the average score.

•

For Billing/Documentation only 123 retailers have given responses. Therefore the average score comes to 369 and the actual score is 349 which is less than the average score.

•

For Credit Period allotted the score is 287 which is lowest among all and very less than the average score.

•

In terms of Profit Margin that retailers earn on the Product of Marico the responses were provided by only 101 retailers. It's actual score is 236 which is also less than the required average score for that attributes/activities

•

Claim Settlement is the parameter where the score is lowest among all the parameters

Int er pre ta ti on : •

POP attractiveness is Good according to retailers

•

Order taking mechanism is also satisfactory and according to retailer's requirements.

•

Most of the retailers says that they do not take bill because of VAT problem, and analyzing the score it shows that retailers are dissatisfied with Billing/Documentation system of the company.

•

Credit period allotted is also rated poor by retailers it shows some problem in credit allotment to retailers either by intermediaries or the company itself.

•

Most of the retailers refrain from answering the question, but from the responses given and analyzing the score retailers perceive the Profit margin of the company to be less.

•

Company claim settlement system is extremely poor. Retailers are highly dissatisfied with the system

51

QUESTIONNAIRE ANALYSIS (of Wholeseller's) Q1) Do you buy the products of Marico from other Supplier than the stockiest of your area? Yes Yes No

No 26 4

CHART – 19 Wholeseller's Responses for Purchase Other than Area Stockiest.

Wholesellers Responses

30 25 20 15 10 5 0 Yes

No

Fin din gs: From analyzing the responses of Wholeseller it could be analysed that 87% of responses say that they purchase marico products from other purchase destination. and only 14% of the responses say that they do not purchase from other area than stockiest of their own area

Int er pre ta ti on : •

Most of the Wholeseller's purchase product from the other area.

•

Purchasing is done mainly form outside in order to meet retailers order and due to unavailability of specific product with stockiest.

52

Q2) Are you satisfied by the services given to you by the stockiest of your area? Indicate (1: Excellent & 5: V.Bad) Services Provided 1 2 3 4 5 Total Score Van Delivery 124 4 26 0 0 0 Order Taking 115 5 21 0 3 0 Claim Settlement's 55 0 0 0 25 5 Product Availability 96 0 17 2 11 0 Credit Period Alloted 76 0 8 0 22 0 Discount/Margin 95 0 18 0 11 1 Rank 1.Score5 & Rank 5 Score 1 Min Score: 30 & Max Score 150.Average 90 CHART – 20 Evaluations of Services Provided by Stockiest to Wholeseller 150 124

115 96

95 76

55 30

Series1

Van Delivery

Order taking

124

115

claim Pr.Availa settleme bility 55

96

Credit Alloted

Discount/ Margin

76

95

Fin din gs: •

From the above analysis of W.Score for different services provided by the stockiest to Wholeseller's it is analysed that services like V.Deliver,Order Taking, have score more than 100 which is above average score

•

Other Services like C.Settlement,Credit Period allotted and discount margin have scored less than 90 which is below the average score

•

Product availability is also 96 points.

53

Int er pre ta ti on : •

Wh.sellers has rated V.good to van delivery by majority of them it shows they are satisfied by the service.

•

Order taking is also rated V.good it also shows Wh.sellers are satisfied

•

Claim Settlement has got least point rated Bad by majority of respondents. There is some problem in the claim settlement system and Wh.sellers are not satisfied

•

Credit Period allotted by stockiest to them is perceived less thus it is rated bad by majority of respondent showing they are dissatisfied by credit period allotted

•

Discount/P.Margin & Product availability given to Wholeseller's is perceived to be average as score shows that it is just up the average score.

54

Q3) How often you buy the marico products from other Supplier and not of your area? Mostly

Sometimes

Rarely

Never

Mostly Sometimes Rarely Never

0 8 22 0

Stockiest of U.Area Wh.sellers of U.Area Stockiest of other R.Area Wh.sellers of other R.Area

7 2 21 0

CHART – 20 Wholesellers Purchasing Frequency & Destination other than Area Stockiest Stockiest of U.Area 23%

Sometimes 27%

Wh.sellers of U.Area 7% Stockiest of other R.Area 70%

Rarely 73%

Fin din gs : Form the above analysis it could be identifies that Wholeseller's purchase product from the other area which happens rarely and according to 8 respond ants it happens sometimes. Most preferred destination for purchasing is Stockiest of other rural area for most of the wholesalers.

Int er pre ta ti on : • • •

Product Availability with the sockets is a area of Concern for the Company. Most of the times local Wholeseller has to purchase products from other rural stockiest in order to meet the retailers order. There seems a problem between C& F agents& Stockiest in order Taking and delivery which need to be readdressed by the company.

55

Q4) Which are the Product's that you buy from the other suppliers majority of times other than the stockiest of your own area? (More than 1 response) Hair Oil Category Hair Care Category Edible Oil Category Other Products

3 36 18 8

CHART – 21 Category of Products that are unavailable from local Stockiest

8

3 Hair Oil Category Hair Care Category Edible Oil Category

18 36

Other Products

Fin din gs : As from the above analysis it has been found out that majority of retailers buy the hair care product's from other stockiest as it has 36 responses, edible oil is bought from other location according to 18 responses.

Int er pre ta ti on : •

It can be said that the Hair Care category that includes silk & shine, Mediker, & After shower are the products which are not efficiently distributed by the company

•

The problem might be at C & F agent, or stockiest that the company needs to identify and work upon it so that distribution of such products cab be turn in lieu of demand from the Wholeseller's and local retailers.

56

Q5) Approximately how much of your order from retailers are impacted/affected due to cutting problem or defective products supplied to you? 0 - 5% 10 – 15%

10-15

20 8 2

15-20

0

0-5 5-10

5 - 10% 15 – 20%

CHART 22 – Percent of Order Loss to Wholesellers due to Defective/Cutting Problem 25

Responses

20 15 10 20 5

8 2

0 0-5

5-- 10

10-- 15

0 15-20

Percentage Of Order Loss (PA)

Fin din gs : From the responses it could be anlysied that wholesleers average business or order are affected by 0-5% according to 20 responses, 5-10% according to 8 repsonses

Int er pre ta ti on : •

The cutting problem is definitely impacting the wholesalers business

•

Wholeseller's order are not met in time in return it impacts retailers order and ultimately product availability to end user

•

Company shoulds try and bring down the percentage defect in product that may cause due to transportation, improper handling or packaging etc

57

HYPOTHESIS TESTING Null hypo: Less than 10% of sale is affected due to defective products or cutting problem µHo < 10 % (Null hypo) µH1 >= 10 % (Alt Hypo) Significance level: 5 % It is one-tail test.

Proportions

X

0- 5 %

2.5

20

-2

7.5

8

-1

12.5

2

0

17.5

0

1

5- 10 % 10- 15 % 15-20%

f

N= 30

d

fd2

fd -40

80

-8

8

0

0

0

Σfd = --48

0

Σfd2 =88

X = 12.5 + Σ fd/N = 12.5 + (-1.60) = 10.9

σ = sqrt [Σfd2/n – (Σfd/n) 2] = √ (88/30)- (-48/30)2 = 0.61 S.E. = 0.112 Ζ = (x -µ)/ S.E = (10.9-10)/0.112 = 8.03

 z cal = 8.03  z tab = 1.645 Calculated value of Z is more than table value, so the null hypothesis is rejected.

58

c

less than 10 percentage of sales is affected by cutting problem

0-5 5-10

mead point 2.5 7.5

frequncy 20 8

d -2 -1

fd -40 -8

fd*d 80 8

10-15

12.5

2

0

0

0

15-20

17.5

0

1

0

0

-48

88

30

MEAN SD

10.9 0.611

SE Z table value

0.112 8.068 1.645

59

CONCLUSION OF THE STUDY. (Based on Retailer's Responses) ► Company Marico has strong and long term association with the retailer's in rural area's ► Parachute is the most satisfied Brand/product, followed by Saffola, Silk & Shine Hair & Care, and Sweekar Edible Oil & after Shower Gel, but the Brand Shanti Amla is area of concern as it is regarded to be dissatisfied brand. ► The Individual Product/Brand Satisfactory Chart is as under:

PARACHUTE •

It is a Satisfied Brand of the company and satisfaction is high on all parameters (i.e.) Packaging, Product Varities, Commssion. T.P Offers and even pricing is effective.

HAIR & CARE •

It is satisfactory brand of the Company. Satisfaction level is high on other parameters as mentioned above but the product variants in this brand are just two which according to retailers are less and thus they are dissatisfied with the brand on this parameter.

SHANTI AMLA •

It is Dissatisfied Brand of the Company,Packaging & Product Varities are the parameters on which company is lacking resulting into dissatisfaction among the retailer's

AFTER SHOWER •

It is a new Product therefore it is neutrally rated on Product Varities and Pricing but retailers are dissatisfied by the commission given given on this brand. and they are satisfied by Packaging and Trade promotion offers given on this brand

SILK & SHINE

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•

It is Satisfactory brand almost on all Parameter's. There are no Product Varities in this Brand.

SAFFOLA •

It is a satisfied Brand. Retailers are satisfied by Packaging, Product Varities and Pricing of this Brand but that are dissatisfied by the Commission given and T.P offer's given to them as they perceive it to be less than as compared to other competitor's in the same product category.

SWEEKAR •

It is a dissatisfactory Brand. Retailers are dissatisfied by commission, T.P Offer's and pricing they perceive it to be high as compared to competition.

► Company is having efficient Sales Force and their Visit to retailers for order taking is also adequate and satisfactory. ► Company is providing Timely & Accurate deliveries of goods to it's rural line retailer's but the Completeness of Order is not maintained. According to retailers they say that sometimes company sends more of the same Brand or less of the same or sometimes the entire order is not according to prescribe order quantity. It shows that deliver system is efficient and effective but the Dispatching is the area where company needs to improve. ► There is some definite problem with the commission system and commission paid to retailers by the company. Majority of retailers are dissatisfied by commission system. Another Market research is required specifically on Brand v/s Competitions v/s Commission paid to retailers. ► Proportion of Defective product is less which shows effectiveness of product handling, efficiency of delivery mechanism and the quality and packaging standard's that the company follow's ► Most preferred trade promotion is Cash Discount, followed by Coupons at 2nd, Gift Articles at 3rd, Bonus Pack's at 4th & Tours at 5th ranking. ► Credit Period & Profit Margin allotted to retailers by the company is perceived to be less and thus they are dissatisfied on this parameter ► Claim Settlement System of the company is Extremely Poor. Company need's to make it efficient and faster.

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(Based on Wholeseller's Responses) ► Large chunk of Wholeseller's purchased goods from the stockiest other than of their own area which shows product availability with wholesalers is not enough to match the order of retailers.Wholeseller's mainly purchase from the stockiest of other rural area in such situation ► Wholeseller's are satisfied with Van Delivery of goods to them by their area stockiest. They rate it good along with order taking mechanism. ► Claim Settlement and Credit period given to Wh.sellers by the company is rated poor which shows that retailers are dissatisfied by company on this parameter's ► Wholeseller mainly Purchase Hair Care Products and s from other Stockiest which shows that this product are not supplied according to retailers and whole sellers order by the company stockiest to whole sellers.

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RECOMMENDATION

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