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CHAPTER 1

INTRODUCTION

INTRODUCTION OF THE STUDY

The vast milk market in Pune is attracting more and more new milk brands and this has
increased the competition in the market. Due to huge competition, the importance of the
distribution channel has increased tremendously. The company needs to formulate and
implement an effective distribution channel so that it can survive in the market.
In the study of 2 months various distribution channels of Govind milk and milk products in
Pune were analyzed.
The distributor and the retailers network that the marketing team of Govind dairy has set
up within a few span of time in Pune city was studied.

STUDY OF CHANNELS OF DISTRIBUTION

INTRODUCTION:Distribution channels pose a kaleidoscopic variety. The simplest pattern is the one where
the producer takes his products directly to the consumer without any marketing
intermediaries. The other pattern involves many different of tiers and various types of
intermediaries.
DEFINITIONS:Channel of distribution is a path traced in direct or indirect transfer of the title of a
product as it moves from the producer to ultimate consumers or industrial users
-EW Cundiff and RS Still

A distribution channel also known as a marketing channel is a set of interdependent


organization or intermediaries involve in the process of making a product available for
consumption. A channel directs a flow of products from producers to customers.
Intermediaries are organization operating in the middle or between the producer and the
final buyer. Traditionally, intermediaries have been referring to as middle men.
Marketing channel satisfies demand supplying goods and services at the right time, place,
quantity and price. They create value for consumer by generating possession, time and
place utilities. Channels of distribution create possession utility by providing goods at a
price which the consumers are willing to pay and under condition, which bring them
satisfaction and pride or ownership. Distribution channels also bring goods to the
consumer in a convenient shape, colour, unit, size, and package thereby creating
convenience utility.

It is necessary to analyze the reasons for the emergence of marketing channels, in order to
fully understand the role of distribution channels. Channels of distribution in any given
economic system emerge due to the following reasons:
1. Economy and Efficiency:Marketing centers on the satisfaction of need and wants through the exchange process. In
order to facilitate exchange, it is essential to successfully overcome the barriers to
exchange
2. Facilitates sorting process:Intermediaries adjust the discrepancy of assortment through the process of sorting. The
sorting process consists of four activities.
i) Sorting: There is sorting which involves the selection of an assortment of
homogeneous goods from a heterogeneous supply of a certain class of products
ii) Assembling: Homogeneous supplies are assembling from the number of
source. This is known as accumulation
iii)
Allocating: Consists in breaking down the homogeneous supply in
relation to a specifics demand.
iv)Assorting: Involves, building up a final assortment of products to match
consumer demand.
3. Facilitates search process:Marketing channels facilities the search process. Neither the seller nor the buyers are sure
about their search. Channel members are well organized and they eliminate this uncertainty
in the search process. For example, wholesalers are organized by specific lines of trades
such as textiles, hardware, food, clothing etc.
4. Reutilization of transaction becomes possible:Various members of a marketing channel provide for reutilization of transaction. The
intermediaries in distribution as a person can be eliminated but their functions cannot be
eliminated.

IMPORTANCE OF THE DISTRIBUTION CHANNEL

Most producers do not sell their goods directly to the final user between them stand a set of
intermediaries performing variety of the functions. These intermediaries constitute a
marketing channel
A marketing channel system is the particulars set of marketing channels employed by a
firm. Decisions about the marketing channels system are among the most critical facing
management. Marketing channels also represent a substantial opportunity cost. One of the
chief roles of marketing channels is to convert potential buyers in to profitable orders.
Marketing channels just not serve markets, they must also make markets.
The channels chosen affect other marketing decisions. The companys pricing depends on
whether it uses mass merchandise or high quality boutiques. The firm sales force and
advertising decision depend on how much training and motivation dealers need. In addition
channel decision involves relatively long term commitments to other firms as well as a set
of policies and procedures.
A push strategy involves the manufacture using its sales force and trade promotion money
to include intermediaries to carry promote, and sell the product to end user. A pull strategy
involves the manufacture using advertising and promotion to persuade consumers to ask
intermediaries for the product, thus inducing the intermediaries to order it. Pull strategy is
appropriate when there is high brand loyalty and high involvement in the category, when
people perceive difference between brands and when people chose the brand before they
go to the store top marketing companies such as Nike, Intel and Coca-cola skillfully
employ both push and pull strategies.

CHANNEL LEVELS AND FLOW

The producer and final customer are part of every channel. We will use the number of
intermediary levels to designate the length of channel. Following chart illustrates several
consumer-goods marketing channels of different lengths.
A zero-level channel (also called a direct-marketing channel) consists of a manufacturer
selling directly to the final customer. The major examples are door to door sales, home
parties, mail orders, Tele marketing, TV selling, Internet selling, and manufacturer owned
stores. Avon sales representatives sell cosmetics door-to-door; Franklin Mint sells
collectibles through mail order; ATandT uses the telephone to prospect for new customers
or to sell enhanced services to existing customers; Time-Life sells music and video
collections through TV commercials or longer infomercials; red Envelope sells gifts
online; and Gateway sells computers and other consumer electronics through its own
stores. Marketing Insight: M-Commerce opens up new opportunities for marketers
describes new development in that area.
From figure 1; it shows that a one-level channel contains one selling intermediary, such as
retailer. A two-level channel contains two intermediaries. In consumer markets, these are
typically a wholesaler and a retailer. A three-level channel contains three intermediaries. In
the meatpacking industry, wholesalers sell to jobbers, who sell to small retailers, In Japan,
food distribution may involve as many as six levels. From the producers point of view,
obtaining information about end users and exercising. Control becomes more difficult as
the number of channel levels increases.

It also shows channels commonly used in Industrial marketing. An industrial goods


manufacturer can use its sales force to sell directly to industrial customers; or it can sell to
industrial distributors, who sell to the industrial customers; or it can sell through
6

manufacturers representatives or its own sales branches directly to industrial customers, or


indirectly to industrial customers through distributors. Zero-, one-, and two-level
marketing channels are quite common.
Channels normally describe a forward movement of products from source to user. One can
also talk about reverse-flow channels.
They are important in the following cases;
(1) To reuse products or containers (such as refillable chemical-carrying drums):
(2) To refurbish products (such as circuit boards or computers) for resale;
(3) To recycle products (such as paper); and
(4) To dispose of products and packaging (waste products). Several intermediaries play a
role in reverse-flow channels, including manufacturers redemption centers, community
groups, and traditional intermediaries such as soft-drink intermediaries, trash-collection
specialists, recycling centers, trash-recycling brokers, and central-processing warehousing.

CONSUMER MARKETING CHANNEL

0-level

MANUFACTURER

1-level

2-level

MANUFACTURER

MANUFACTURER

3-level

MANUFACTURER

WHOLESALER

CONSUMER

WHOLESALER

RETAILER

RETAILER

RETAILER

DELIVERY BOY

CONSUMER

CONSUMER

CONSUMER

Fig.1: Channel Levels

DISTRIBUTION CHANNEL OF MILK AND MILK PRODUCTS

Manufacturing
Plant

Sales and
Distribution

Distributors

Outlets

Consumer

Supermarket/
Sweet mart

Consumer

Fig.2: Distribution channel levels of milk and milk products

OBJECTIVES OF THE STUDY

The project work is all about analyzing the distribution channels of Govind milk and the
objectives of the study are as follows-

To study the system of distribution channel of Govind milk in Pune region.


To know the views of dealers on the various aspects related to distribution system.
To analyze the problems faced by intermediaries of distribution channel.
To study the satisfaction level and psychology of distributors.

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HYPOTHESIS

PURPOSE: -

To study whether there is relationship between the delivery time of milk by the company to
the wholesalers and the delivery time taken by the wholesaler to deliver milk to the
retailers and the end users (consumers).

H0- There is no relationship between the delivery time of milk by the company to the
wholesalers and the delivery time taken by the wholesaler to deliver milk to the retailers
and the end users (consumers).

H1- there is a significant relationship between the delivery time of milk by the company to
the wholesalers and the delivery time taken by the wholesaler to deliver milk to the retailers
and the end users (consumers).

11

SCOPE OF STUDY

The scope of the study is quite broad. It includes an in-depth study of the distribution
channel of Govind Milk and also involves comparative study of Govind milk and milk
products distribution services with reference to other milk products provider in market.
This study also aims to analyze the efficiency in distribution channel of Govind milk,
which will be helpful to Govind milk to expand their distribution channel and will provide
more strength to the distribution channels.

12

LIMITATIONS OF THE STUDY

The study has got following limitations:


It was not possible to obtain some confidential data from the organization.
Limited time was available for interviewing the respondents. As a result of this it

was not possible to gather full/proper information sometimes.


The study also involves the limitations of Convenience Sampling.
Since the study is done in Pune, the results cannot be generalized for all regions.
Working area of Govind milk is in three different territory regions so it was
impossible to collect proper data of other regions; market situations of every place
is different.
33

13

CHAPTER-2

COMPANY PROFILE

14

COMPANY PROFILE

SLOGAN:GOOD MORNING TO GOOD HEALTH

ADDRESS:HEAD OFFICE:
GOVIND MILK AND MILK PRODUCTS PVT LTD.
GANESHSHERI PANDHARPUR ROAD,
KOLKI PHALTAN, DIST. SATARA,
PHALTAN- 415 523
MAHARASHTRA, INDIA.
TEL: (+91) 02166 221302/222538/221548
FAX: (+91) 02166 226025
EMAIL: CONTACT@GOVINDMILK.CO
BRANCH OFFICES:
PUNE
GOVIND MILK AND MILK PRODUCTS PVT LTD.
SHANTINAGAR CO-OP. HOUSING SOCIETY,
B-1, SHOP NO. 4, RAM TEKADI, NEAR
KIRLOSKAR BRIDGE, HADAPSAR, PUNE 411028
TEL: (020) 26821036
15

PRODUCT PROFILE

1. MILK

Features: Govinds milk is healthy and of good quality.


Hygienic packaging
It is gone through the process of Standardization and Pasteurization
2. BUTTER

16

Features:

Quality tested.

Butter is made from fresh cream separated from cow's milk.

3. GHEE

Features:Govind Ghee is made from cow's milk, maintaining its natural aroma and flavor.
It is easily digestible and rich in the natural vitamins and antioxidants available in milk fat.

It provides good health to you and your family.

Ingredient: Milk Fat

4. LASSI

17

Features:

Govind Lassi is sweet and healthy.

Known for low price and high quality

5. PANEER

Features:

Govind's paneer is prepared from standardized buffalo milk by heat and acid

coagulation of the casein component of milk.


Rich in taste and used for direct consumption and in preparation of various culinary

dishes.
Ingredient: Milk solids.

6. POWDER MILK

18

Features:

Easy to make milk,

Best technology is used for making powder milk.

7. FLAVOURED MILK

Features:Govind's flavored milk is available in the following flavors:

Mango

Pasta

Kosher

Strawberry
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Chocolate

Coffee

Butterscotch

Masala

8. DAHI

Features:

It is a semi-soft, slightly sour, acid fermentation product of milk.

It is made under strict hygienic conditions and always maintains consistency in taste.

9. SHREEKHAND

20

Features:

Govind's shrikhand comes in three flavours: badam and pista, kesar and plain.
It is made from fresh curd prepared from fresh buffalo milk.

10. AMRAKHAND

Features:

Amrakhand is mango-flavoured shrikhand.

It is a seasonal product

11. CHAAS
21

Features:

It is a fermented liquid milk product containing lactic acid bacteria.

It has a tangy taste.

HISTORY OF THE ORGANIZATION


Govind milk and milk products are established in the year September 1997 in room of
Agriculture High School at Phaltan to upliftment of the farmers of Phaltan Taluka. The
company is located in Phaltan Dist. Satara, in Maharashtra state, covering three acres of
land in clean surroundings free from pollution. The dairy plant is located 280 Kms. from
Mumbai and 110 Kms. from Pune city by the Pune Pandharpur road.
The dairy has since grown from a merger milk collection of 250 liters. And within short
period the milk collection reached up to 5000 lit per day.Within the due course of time the
company was shifted to its present location which covers an area of one acre. As on today
the daily milk collection is 250000 liter per day.
Products and Technology:The Company is involved in the business of milk processing. The raw milk is collected
from the villages covering the area of 50 Kms. The milk processing unit is well equipped
with pasteurizer and homogenizer. The pasteurized and homogenized milk pouch filled and
sent in the markets of Pune, Satara and Mumbai city. Also the part of the milk is sent in
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bulk quantity to Mumbai, Kolhapur, Goa and Karnataka directly and through various
trading agencies.
Govind dairy ensures the quality standards. The technology is absolutely with most of the
equipment sourced from the best in the dairy industry. The company has highly qualified
technical staff that maintains the quality and hygiene of milk and milk products. The
advanced machinery is purchased from Alfa Laval, APV Gavlin, Nichrome and Kirloskar,
which are well known international companies.
The products produced include butter, ghee, dairy whitener, SMP, shrikhand, amrakhand,
lassi, basundi, paneer etc.
There team of Veterinarians is working on clean milk production. In extension work they
will give the complete knowledge to farmers about health of the animal feeding, housing
and management, artificial insemination. Vaccination and FMD is carried out twice a year
(in September and May-June). Farmers visits to other dairy farms are also conducted to
get technical information.

CHAPTER-3

LITERATURE REVIEW
23

LITERATURE REVIEW

I. In a study conducted by Buhalis (2000), the industrial relationships in the distribution


channel of tourism as well as the conflict experienced in the distribution channel between
hoteliers and tour operators in the Mediterranean summer/seaside resort context were
concentrated upon. Research in Greece demonstrates that Mediterranean hoteliers
increasingly find the power of tour operators from Northern European countries very
challenging. Similarly with other intermediaries, in order for tour operators to remain
competitive in the marketplace they reduce the profit margins of their suppliers at
destinations and thus reduce the profitability levels of enterprises and the economic
impacts at destinations (Buhalis, 2000).
II. Mols, Bukh and Nielsen (1999) conducted a study on the adaptation process in the
distribution channel structure of the retail banking sector as a consequence of the
introduction of electronic channels, such as telephone banking, PC banking and Internet
banking. Based on responses from 42 retail banks in Denmark, their distribution channel
strategies are described and their relation to selected marketing mix elements is examined.
24

Most Danish retail banks attach importance to offering a customer-friendly PC bank


service, whereas fewer of them attach the same importance to telephone, Internet and
branch banking. A multiple channel strategy combining several channels is the most
popular (Mols, Bukh and Nielsen, 1999).
III. In a study conducted by Kumar (2011) it was found that as compared to Amul, Mother
Dairy had more own retail outlets where they could directly place their products thus
showing a smaller distribution channel (Kumar, 2011).
IV. James, Robert, and Laurie, (1991) conducted a study to determine the causal relationship
between conflict and satisfaction. Both a meta-analysis of previous research and this
longitudinal study of distribution channel behaviour in the aircraft industry in North
America of distribution channel behavior found that channel member satisfaction and
manifest conflict within the channel were both antecedents and consequences of each other
(James, Robert, and Laurie, 1991).

V. Kale and McIntyre (1991) studied Channels of Distribution in terms of culture. Channels
of distribution are primarily designed to facilitate division of labour. Since the global
environment is characterized by diverse and deep-rooted cultural norms and value systems,
the nature of this division of labour across cultures should exhibit systematic differences.
Channel relationships should therefore reflect the underlying cultural tenets of society
(Kale and McIntyre, 1991).
VI. Rosenberg and Stern (1971) in their study stated that conflict among firms in distribution
channels is inherent, omnipresent and is potentially disruptive (Rosenberg and Stern,
1971).
VII. In their study, Connolly, Olsen and Moore (1998) assessed the use of internet as a
distribution channel in the hotel industry. The internet has become an extension of hotel
chains' global distribution systems. It offers three particular strategic possibilities which are
to extend the company's reach to global markets thus increasing revenue, to reduce costs
by bypassing traditional distribution channels, avoiding commissions, and lowering
transaction fees, and to enhance customer service by providing more and better

25

information with multimedia. However, difficulties like the internet not being helpful in
real-time, online reservations (Connolly, Olsen and Moore, 1998).
VIII. Shaffer and Zettelmeyer (2004) conducted a study on the role of Advertisements as a
Distribution Channel. Findings showed that manufacturers can suffer from advertisements
that reduce the cross price elasticities between their products. Also, depending on its
bargaining power, a retailer can be better off when the manufacturers products are
perceived to be less substitutable (Shaffer and Zettelmeyer, 2004).
IX. Haugland, S. A., Rave, T (1994) in their study focused on inter-firm transactions in
international distribution channels. Special attention was paid to the governance of interfirm transactions. In the context of International distributors of Norwegian farmed salmon,
it was found that price, authority and trust represent different governance mechanisms,
which can be combined into a governance vector. Price reflects the use of market
mechanisms, while authority means the reliance on organizational mechanisms such as
rules and procedures. Trust, on the other hand, implies monitoring transactions by social
norms and the development of personal relationships (Houghland and Rave, 1994).

CHAPTER 4

26

RESEARCH METHODOLOGY

27

RESEARCH METHODOLOGY
Meaning:Marketing research is the systematic designed collection, analysis and reporting of the data
and finding relevant information to specific market situation faced by the company.
The research process is as follows
A. Define the problem and research objectives:The main objective of the study is to analyze distribution channel regarding to Govind milk
and milk products Ltd. Other associated secondary objectives were to analyze attributes
affect exhibitions.
B. Developing the research plan:The second stage of marketing research is for developing the most efficient plan for
gathering needed information. Designing research plan is called for taking decision on data
source, research approach and sampling plan.
Data sources
a) Primary data:Primary data for the study is collected directly from the distributors of Govind milk
through structured questionnaire.
b) Secondary data:This data has been collected from the literature available in the company library and
system like company literature, company websites, competitors websites etc. At the same
time, EBSCO and Google were also used to collect secondary data.
28

C. Research approaches:Out of the four research approaches i.e.


Observational research
Focus group
Survey research
Experimental research,

In this project the approach used was survey approach because the main objective is to
evaluate the distribution channels.
D. Research instruments:Research instrument can be of two types
Questionnaire
Mechanical instruments

In this survey the research instrument use is questionnaire.


E. Sampling plan: Sampling unit

- Distributors

Sample size

- 50

Field area

- Pune

29

F. Sampling procedure: Convenience Sampling


Purposive Sampling

In this survey the sampling procedure used is Convenience sampling and purposive
sampling
G. Contact method:The method of contact can be following types:
Mail questionnaire
Telephonic interview
Personal interview

The method adopted in my survey is personal interview and telephonic conversation.


H. Collection of information:The information was collected from end users by personally asking them questions and
filling the questionnaire.
I. Analysis of the information:Descriptive Analysis was used for the study. The information available was analyzed
through tables, graphs and pie- charts.

30

CHAPTER-5

DATA ANALYSIS AND INTERPRETATION

31

DATA ANALYSIS AND INTERPRETATION

Q. 1) Do you sell Govind milk?


Table.1: No. of respondents who sell Govind milk.
Response
YES
NO

Number of
Respondents
41
09

Percentage of
Respondents
82
18

Total

50

100

Fig.3: Percentage of respondents who sell Govind milk.


INTERPRETATION:Above graph indicates that 41 respondents said that they sell Govind milk, while 09
of respondents said they dont sell Govind milk.

Q2) What are the reasons for not keeping Govind milk?
32

Table.2: Reasons for not selling Govind milk.


Response
Service problem
Less margin
Quality
Total

Number of
Respondents
5
3
1
09

Percentage of
Respondents
56
33
11
100

Fig.4: Percentage of distribution of various reasons for not selling Govind milk.
INTERPRETATION:The above graph indicates that 5 respondents said that they are not selling Govind
milk due to service problem, 3 respondents admit the problem of fewer margins, and only 1
respondent accepts Quality as the reason for not keeping Govind Milk.

Q. 3) Reason behind selling Govind milk?


Table.3: Reasons behind selling Govind milk.
Response
Reputed Brand

Number of
Respondents
20
33

Percentage of
Respondents
49

High Commission
Customer Want
Quality
TOTAL

07
06
08
41

17
15
19
100

Fig.5: Percentage of distribution of various reasons for selling Govind milk.


INTERPRETATION:Above figure shows that out of 41 respondents,
20 respondents say that, they sell Govind milk due to its reputation,
07 respondents say that due to high commission they sell Govind milk,
06 respondents sell Govind milk because their customers want Govind milk and remaining
08 respondents sell Govind milk due to its quality.

Q. 4) How much is your turnover in liters of Govind Milk per day?


Table.4: Per day turnover of Govind milk.
Response
50-400 liters
400-750 liters
750-1100 liters
Above 1100 liters
Total

Number of
Respondents
08
09
14
10
41
34

Percentage of
Respondents
20
22
34
24
100

Fig.6: Percentage of distribution of respondents with respect to per day turnover of Govind
milk.
INTERPRETATION:From the above figure we can say that
08 of respondents said that they sell 50 - 400 liters,
09 respondents said that they sell above 400 -750 liters,
14 respondents said that they sell 750 - 1000 liters,
10 respondents said that they sell above 1100 liters of Govind milk per day.

Q. 5) At what time do you get the delivery of milk from company?


Table.5: Delivery time of milk by the company.
Response
3 am
4 am
5 am
6 am
TOTAL

Number of
Respondents
29
08
04
00
41

35

Percentage of
Respondents
70
20
10
00
100

Fig.7: Percentage of distribution of respondents with respect to delivery time of milk.


INTERPRETATION:From the above chart, we can say that 70% of respondents say that they get milk at 3 am.
20% say at 4 am and remaining respondents say that they get milk at 5 am every day.

Q. 6) Are you able to deliver milk on time after getting it from company?
Table.6: No. of respondents who are able to get delivery of milk on time.
Response
YES
NO
TOTAL

Number of
Respondents
37
04
41

36

Percentage of
Respondents
90
10
100

Fig.8: Percentage of distribution of respondents who can get delivery of milk on time.

INTERPRETATION:Above diagram indicates that


37 respondents say that they can deliver milk on time and only
5 say that they cant deliver milk on time.

Q. 7) Do you get any credit facility from company?


Table.7: No. of respondents who get credit facility.
Response
Yes
No
Total

Number of Respondents
00
41
41

37

Percentage of Respondents
00
100
100

Fig.9: Percentage of distribution of respondents who get credit facility.

INTERPRETATION:Above pie diagram is indicating that no respondent is getting any credit facility from
company.

Q. 8) How many home delivery boys do you have?


Table.8: No. of home delivery boys of the distributors.
Response
1
2
3
Above 3
Total

Number of
Respondents
22
09
06
04
41

38

Percentage of
Respondents
53
22
15
10
100

Fig.10: Percentage of respondents with respect to home delivery boys.


INTERPRETATION:Above chart indicates that
Most of the distributors have only 1 delivery boy i.e. 22 respondents.
Numbers of respondents which have 2 and 3 delivery boys are 9 and 6 respectively.
Only 4 respondents have more than 4 delivery boys.

Q.9) How many retailers do you cover daily?


Table.9: No. of retailers covered by the distributors.
Response
10-25
26-50
51-75
Above 75
Total

Number of
Respondents
11
17
09
04
41

39

Percentage of
Respondents
27
41
22
10
100

Fig.11: Percentage of distribution of respondents with respect to no. of retailers covered daily.
INTERPRETATION:Above chart is describing the no. of shops which Distributors cover daily.
11 respondents out of 41 said that they cover 10 to 25 retail shops daily.
The range between 26 to 50 retailers, is the highest i.e. 17 respondents.
Out of total respondents, 9 respondents cover 51 to 75.
The number of respondents who cover more than 75 shops is lowest i.e. 4.

Q. 10) Do you get Money back if milk was spoiled or package were leaked?
Table.10: No. of respondents who get money back facility.
Response
Yes
No
Total

Number of
Respondents
00
41
41

40

Percentage of
Respondents
00
100
100

Fig.12: Percentage of distribution of respondents who get money back facility.

INTERPRETATION:Above pie diagram is indicating that no respondent is getting money back if packages get
leaked or milk spoiled.

Q. 11) How do you rate distribution services of Govind milk?


Table.11: Ratings given by respondents to the distribution services of Govind milk.
Response
Excellent
Good
Average
Poor
Total

Respondent
07
14
17
03
41

41

Percentage
17
34
41
08
100

Fig.13: Percentage of distribution of various ratings given by the respondents to the


distribution service of Govind milk.
INTERPRETATION:The above diagram indicates
07 respondents rate the distribution service of Govind milk Excellent,
14 respondents rate it as good,
17 respondents rate it as Average,
03 respondents rate the distribution service of Govind milk as poor.

42

CHAPTER-6

HYPOTHESIS TESTING

HYPOTHESIS TESTING

PURPOSE: To study whether there is relationship between the delivery time of milk by the
company to the wholesalers and the delivery time taken by the wholesaler to deliver
milk to the retailers and the end users (consumers).

Solution:

43

H0- There is no relationship between the delivery time of milk taken by the
company to the wholesalers and the delivery time taken by the wholesaler to deliver
milk to the retailers and the end users (consumers).
H1- There is a significant relationship between the delivery time of milk taken by
the company to the wholesalers and the delivery time taken by the wholesaler to
deliver milk to the retailers and the end users (consumers).

Level of significance = 0.05


For statistical test we use chi-square test of contingency.

Decision rule = If p-value is less than level of significance i.e. (0.05) then we reject
the Null hypothesis (H0).

TABLES FOR HYPOTHESIS TESTING


Table.12:- Notes for hypothesis testing

Notes
Output Created

09-OCT-2012 16:27:06

Comments
Input

Active Dataset

DataSet1

Filter

<none>

Weight

<none>
44

Split File

<none>

N of Rows in Working
Data File

50

Definition of Missing

User-defined missing values are treated as


missing.

Cases Used

Statistics for each table are based on all the


cases with valid data in the specified range(s)
for all variables in each table.

Missing Value
Handling

CROSSTABS
/TABLES= delivery time by ability to deliver on
time
/FORMAT=AVALUE TABLES
/STATISTICS=CHISQ
/CELLS=COUNT EXPECTED ROW
COLUMN TOTAL
/COUNT ROUND CELL.

Syntax

Processor Time

00:00:00.02

Elapsed Time

00:00:00.05

Dimensions Requested

Cells Available

174762

Resources

Table.13:- Case Processing Summary

45

Case Processing Summary

Cases
Valid

At what time do you get


the delivery of milk from
the company? * Are you
able to deliver milk on
time after getting it from
the company?

Missing

Total

Percent

Percent

Percent

41

82.0%

18.0%

50

100.0%

At what time do you get the delivery of milk from the company? * Are you able to deliver milk on
time after getting it from the company?
Are you able to deliver milk on time
after getting it from the company?
1

Count
46

29

Expected Count

At what time do you get the


delivery of milk from the
company?

25.5

3.5

% within At what time


do you get the delivery
of milk from the
company?

100.0%

0.0%

% within Are you able


to deliver milk on time
after getting it from
the company?

80.6%

0.0%

% of Total

70.7%

0.0%

7.0

1.0

% within At what time


do you get the delivery
of milk from the
company?

87.5%

12.5%

% within Are you able


to deliver milk on time
after getting it from
the company?

19.4%

20.0%

% of Total

17.1%

2.4%

Count
Expected Count

Count
Table.14:- cross tabulation

Table.15:- Cross tabulation

At what time do you get the delivery of milk from the company? *Are you able to deliver
milk on time after getting it from the company?

47

Total
Count
Expected Count

At what time do you get the


delivery of milk from the
company?

100.0%

% within Are you able to


deliver milk on time after
getting it from the company?

70.7%

% of Total

70.7%

Expected Count

29.0

% within At what time do you


get the delivery of milk from
the company?

Count

29

8
8.0

% within At what time do you


get the delivery of milk from
the company?

100.0%

% within Are you able to


deliver milk on time after
getting it from the company?

19.5%

% of Total

19.5%

Count

Table.16:- Cross tabulation

At what time do you get the delivery of milk from the company? * Are you able to deliver
milk on time after getting it from the company?

48

Are you able to deliver milk on


time after getting it from the
company?
At what time do you
get the delivery of
milk from the
company?

3.5

.5

% within At what time


do you get the delivery
of milk from the
company?

0.0%

100.0%

% within Are you able


to deliver milk on time
after getting it from
the company?

0.0%

80.0%

% of Total

0.0%

9.8%

36

36.0

5.0

% within At what time


do you get the delivery
of milk from the
company?

87.8%

12.2%

% within Are you able


to deliver milk on time
after getting it from
the company?

100.0%

100.0%

% of Total

87.8%

12.2%

Expected Count

Count
Expected Count

Total

Table.17:- Cross tabulation

At what time do you get the delivery of milk from the company? * Are you able to deliver
milk on time after getting it from the company?

49

Total
At what time do you get the
delivery of milk from the
company?

Expected Count

4.0

% within At what time do you get


the delivery of milk from the
company?

100.0%

% within Are you able to deliver


milk on time after getting it from
the company?

9.8%

% of Total

9.8%

Count

41

Expected Count

Total

41.0

% within At what time do you get


the delivery of milk from the
company?

100.0%

% within Are you able to deliver


milk on time after getting it from
the company?

100.0%

% of Total

100.0%

Chi-Square Tests
Table.18:-

Chi-Square
Value

Df

Asymp. Sig. (2sided)

Pearson Chi-Square

32.828a

.000

Likelihood Ratio

24.377

.000

Linear-by-Linear
Association

25.495
50

.000

No. of Valid Cases

41

Test

Observation:

2(2) = 32.82
P value < 0.05

Conclusion:

Since the p-value (0.00) is less than the significance value (0.05) the null hypothesis is
rejected and we conclude there is significant relationship between the delivery time of
milk by the company to the wholesalers and the delivery time taken by the wholesaler to
deliver milk to the retailers and the end users (consumers).
Further based upon the cross tabulation we conclude that when milk is delivered at 3 am by
the company to the wholesaler 100% wholesalers were able to deliver milk on time,
When milk was delivered at 4 am 87% of wholesalers were able to deliver milk on time,
And when milk was delivered at 5 am no wholesaler was able to deliver milk on time.

51

CHAPTER-7

FINDINGS

FINDINGS
The findings of the study may be listed as below:
52

82% of distributors sell Govind milk including wholesalers and retailers.

Less margin and distribution service is the reason why other distributors dont sell Govind
milk and milk products.

Approx. 50% distributors sell Govind milk due to its reputed brand image in the market.

10% distributors complained that they get delivery of milk at 5 am in the morning which
according to them is late, as after getting the delivery they again have to distribute it to
different shops and houses.

No distributor of Govind milk gets credit facility from Govind Milk Pvt. Ltd.

Wholesaler and retailers of Govind milk have less staff for proper and timely delivery of
milk to different shops and houses.

Only 10% of wholesalers cover above 75 retailers, while 68% cover up to 50 retailers in
the nearer market area.

No wholesaler and retailer gets money back facility for any leakage in packaging and
spoiling of milk due to environment and miss carriage factor.

Amongst the distributors on whom the survey was conducted, approx. 40% distributers
rated Govind milk distribution service as average while 8% rated it as poor distribution
service.

From hypothesis testing table no. 16 it was found that when the milk was delivered at 3
am 100% wholesalers were able to deliver milk on time.

From hypothesis testing no wholesaler was able to deliver milk on time when the milk was
delivered at 5 am by the company

53

CHAPTER-8

CONCLUSION

CONCLUSION
54

As we know that Govind milk is not a very big organization as compared to Amul and
other national players in the dairy industry. It has moderate market share in milk, ghee,
shrikhand, amrakhand and paneer, which are its main/core products. With the help of the
study, company can be benefited to understand its weaknesses and can increase its market
share through rectifying those mistakes.
The survey resulted into following conclusions:
Quality is the dominating aspect which influences consumer to purchase Govind milk, but
prompt availability of other milk brands and strong distribution services by the competitors
attract the consumers towards them.
In comparison to Govind milk, the other players such as Chitale, Amul, Warna, Gokul and
Mahananda provide better availability and give competition to the hilt.
People are mostly satisfied with the overall quality of Govind milk, but for the existence in
the local market Govind milk must use aggressive selling techniques and sales promotion
schemes.
Govind milk is not a popular brand in the market.
According to the hypothesis testing it was concluded that there is a significant relationship
between the delivery time of milk by the company to the wholesalers and the time taken by
the wholesalers to deliver milk to the retailers.

55

CHAPTER-9

SUGGESTIONS

SUGGESTIONS
56

Following suggestions can be made on the basis of the study:

Company should concentrate on improving the services to its best which will
motivate the distributors to work more efficiently.
Govind milk should give some credit facility to distributors that they can push
sells by giving credit to retailers.
More advertisements through various media such as newspaper, radio and
television should be done which will increase the awareness of the brand.
Regular visits to distributors and improve distribution network.
Proper replacement of products.
Company should increase profit margin for distributors.
Company should advice distributors to appoint more delivery boys as most of the
distributors have less number of delivery boys.
Govind milk should try to improve their distribution services and deliver milk by
3 am.

57

CHAPTER-10

APPENDICES

QUESTIONNAIRE

Distributors Profile:
Name:
Address:
Age:
Mobile No.:

Q 1) Do you sell Govind milk?


A) Yes

B) No
58

Q 2) What are the reasons for not keeping Govind milk?


A) Service problem

B) Less margin

C) Quality

D) Any other

Q 3) Reasons behind selling Govind Milk?


A) Reputed Brand

B) High Commission

C) Customer Want

D) Quality

Q 4) How much is your turnover in liters of Govind Milk per day?


A) 50 - 400 Ltr.

B) 400 - 750 Ltr.

C) 750 - 1100 Ltr.

D) Above 1100 Ltr

Q 5) At what time do you get the delivery of milk from company?


A) 3 am

B) 4 am

C) 5 am

D) 6 am

Q 6) Are you able to deliver milk on time after getting it from company?
A) Yes

B) No

Q 7) Do you get any credit facility from company?


A) Yes

B) No
59

Q 8) How many home delivery boys do you have?


A) 1

B) 2

C) 3

D) Above 3

Q 9) How many retailers do you cover daily?


A) 10-25

B) 26-50

C) 51- 75

D) 76 above.

Q 10) Do you get Money back if milk was spoiled or packages were leaked?
A) Yes

B) No

Q 11) How do you rate distribution services of Govind milk?


A) Excellent

B) Good

C) Average

D) Poor

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