RESEARCH

THESIS

Comparative Analysis of Distribution System

of
Different Ice-cream Companies

Session October 2008 - January 2010

Undertaken By

Umer Ijaz L1F08MBAM1169

Ahmed Raza L1F08MBAM1166
Mustansar Hafeez L1F08MBAM1174
Muhammed Ali Khan L1F08MBAM1187

Supervised By
Prof. Nasir Riaz

Faculty of Management Sciences

Punjab College of Business Administration
31- Main Gulberg Lahore
 DEDICATION

All praises belong to almighty Allah who is the supreme authority knows the ultimate
relations underlying all sorts of phenomenon going on in this universe and whose
blessings and exaltation flourished our thoughts and ambitions to have the cherished
fruit of our modest efforts in the form of doing this thesis. We also offer our humblest
thanks to HOLY PROPHET HAZRAT MUHAMMED (PBUH) who is the forever torch
of guidance and knowledge for humanity as a whole.

We dedicate our report to our respected and most valuable teacher Prof. Nasir Riaz
who taught us with great affection and dedication and gave us the opportunity to
understand how to do a research project. We feel proud to present this report to the
scholar of the new modern era. He gave us prestigious knowledge about the
different aspects of research, due to which we are able to write this report.

In the last, we would also like to thank our near and dear ones and many other
bosom friends of ours, who suffered uncomplainingly and plucked our courage
during our long working hours. Thus with great love and appreciation, we dedicate
this report to all the above-mentioned people and to all the readers of this report.
 ABSTRACT

This research thesis is covering different issues and research problems with regard
to current distribution system of different ice-cream companies. The main objective
of this study lies in understanding the organization, understanding the marketing
channels of the company and to correct its distribution activities as well. We have
also identified the satisfactions level of retailers for the current delivery system of
different ice-cream companies as well as also studied different activities for each ice-
cream company, 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.

During the entire course of the project, different retailers and distributors were
surveyed for analysis regarding distribution effectiveness. In the first part of the
project, a survey of selected outlets was conducted by taking interview of outlet
owners or managers. We have collected important data using pre-designed
questionnaire. By applying different statistical tools we have found some useful
information, which will definitely help the company to improve the effectiveness of
the distribution channel.

It was an excellent experience while working on the project. We have learnt about
the environment and culture of the organization, its distribution structure; which will
help us in our future endeavors in life.

This report consists of five chapters. The first chapter deals with ―Introduction of
project, Essentials of Project study‖. The second chapter deals with Literature
Review on the topic of distribution. The third chapter deals with Research
Methodology, which includes data collection and analysis techniques, and sample
size for the research project. The fourth chapter deals with Findings, Analysis and
Interpretation of data collected from various outlets. The fifth chapter deals with
Conclusion of project & with Recommendations and Annexure having Questionnaire,
and Bibliography etc.
 TABLE OF CONTENTS

Page No.
Chapter One “Introduction”
Distribution 3
Distribution Channel 3
Discrepancies in distribution channel 5
Complicated success factors for distribution 6
Distribution channel functions and flows 6
Functions of a distribution channel 7
Number of distribution channel levels 8
Types of intermediaries 10
Direct and indirect marketing in distribution 11
Distribution intensity 13
Distribution channel strategy 14
Management of channel systems 15
Distribution system of-ice cream companies 18
Statement of the problem 21
Significance of the study 21
Objectives of the research project 21

Chapter Two “Literature Review”

Literature review 24
Theoretical framework 35

Chapter Three
“Research Methods & Data Collection Techniques‖
Research Methodology 40

Chapter Four “Data Analysis and Presentation” 43

Chapter Five “Conclusions & Recommendations”

Conclusions 75
Recommendations 76

“Annexure” 78
Questionnaire

“Bibliography and References”

Chapter

1
Introduction
1. Introduction

1.1. Distribution

The Meaning of the Word "Distribution" having studied under the head of
consumption the human wants that lead to economic activity, and the satisfactions
that result from consumption; having studied in the second place the production of
goods and services for the satisfaction of human wants; and having in the third place
studied the subject of transfers of goods and services, and especially of their
exchange among producers or between producers and consumers.

1.2. Distribution Channel

Many producers do not sell products or services directly to consumers and instead
use marketing intermediaries to execute an assortment of necessary functions to get
the product to the final user. These intermediaries, such as middlemen (wholesalers,
retailers, agents, and brokers), distributors, or financial intermediaries, typically enter
into longer-term commitments with the producer and make up what is known as the
marketing channel, or the channel of distribution.

Manufacturers use raw materials to produce finished products, which in turn may be
sent directly to the retailer, or, less often, to the consumer. However, as a general
rule, finished goods flow from the manufacturer to one or more wholesalers before
they reach the retailer and, finally, the consumer. Each party in the distribution
channel usually acquires legal possession of goods during their physical transfer, but
this is not always the case. For instance, in consignment selling, the producer retains
full legal ownership even though the goods may be in the hands of the wholesaler or
retailer that is, until the merchandise reaches the final user or consumer.

Channels of distribution tend to be more direct that is, shorter and simpler in the less
industrialized nations. There are notable exceptions, however. For instance, the
Ghana Cocoa Marketing Board collects cacao beans in Ghana and licenses trading
firms to process the commodity. Similar marketing processes are used in other West
African nations. Because of the vast number of small-scale producers, these agents
operate through middlemen who, in turn, enlist sub-buyers to find runners to
transport the products from remote areas. Japan’s marketing organization was, until
the late 20th century, characterized by long and complex channels of distribution and
a variety of wholesalers. It was possible for a product to pass through a minimum of
five separate wholesalers before it reached a retailer.

Companies have a wide range of distribution channels available to them, and

structuring the right channel may be one of the company’s most critical marketing
decisions. Businesses may sell products directly to the final customer, as Land’s
End, Inc. does with its mail-order goods and as is the case with most industrial
capital goods. Or they may use one or more intermediaries to move their goods to
the final user. The design and structure of consumer marketing channels and
industrial marketing channels can be quite similar or vary widely.

The channel design is based on the level of service desired by the target consumer.
There are five primary service components that facilitate the marketer’s
understanding of what, where, why, when, and how target customers buy certain
products. The service variables are quantity or lot size (the number of units a
customer purchases on any given purchase occasion), waiting time (the amount of
time customers are willing to wait for receipt of goods), proximity or spatial
convenience (accessibility of the product), product variety (the breadth of assortment
of the product offering), and service backup (add-on services such as delivery or
installation provided by the channel). It is essential for the designer of the marketing
channel typically the manufacturer to recognize the level of each service point that
the target customer desires. A single manufacturer may service several target
customer groups through separate channels, and therefore each set of service
outputs for these groups could vary. One group of target customers may want
elevated levels of service (that is, fast delivery, high product availability, large
product assortment, and installation). Their demand for such increased service
translates into higher costs for the channel and higher prices for customers.
However, the prosperity of discount and warehouse stores demonstrates that
customers are willing to accept lower service outputs if this leads to lower prices.
1.3. Discrepancies in Distribution Channel

Distribution channels should take care of the following 'discrepancies.

Spatial
Temporal Discrepancy
Breaking bulk
Assortment

Spatial

This channel system helps reduce the distance between the producer and the
consumer of his products. Consumers are spotted and have to be reached
cost effectively.

Example: Companies produce products in one location even for global

needs. MICO makes fuel injection equipment, spark plugs etc in different
plants but its dealer will sell the entire products.

Temporal Discrepancy

The channel system helps in speeding up in meeting the requirement of the

consumers. Time when the product is made and when it is consumed it is
different.

Example: Maruti plant in Gorgon - cars and spares are available when the
consumer wants.

Breaking Bulk

The channel system reduces large quantities into consumer acceptable lot
sizes. Production has to be in large quantities to benefit from economies of
scale. Consumption is necessarily in small lot sizes.
 Example: India is ultimate example in breaking bulk you can buy one
cigarette, one Annacian.

Need for Assortment

The channel system helps aggregate a range of products for the benefit of the
consumer that could be made by one company or several of them. For the
same product, it could be a variety of brands and package sizes.

1.4. Complicated Success Factors for Distribution

The distribution strategy also needs the support and encouragement of top
management to succeed. Some of the CSFs could be: Clear, transparent and
unambiguous policy and procedure should require of serious commitment of the
channel partners.

Fairness in dealings.
Clearly defined customer service policy.
High level of integrity.
Equitable distribution at times of shortage.
Timely compensation channel partners.

1.5. Distribution Channel functions and flows

In order to deliver the optimal level of service outputs to their target consumers,
manufacturers are willing to allocate some of their tasks, or marketing flows, to
intermediaries. As any marketing channel moves goods from producers to
consumers, the marketing intermediaries perform, or participate in, a number of
marketing flows, or activities. The typical marketing flows, listed in the usual
sequence in which they arise, are collection and distribution of marketing research
information (information), development and dissemination of persuasive
communications (promotion), agreement on terms for transfer of ownership or
possession (negotiation), intentions to buy (ordering), acquisition and allocation of
funds (financing), assumption of risks (risk taking), storage and movement of product
(physical possession), buyers paying sellers (payment), and transfer of ownership
(title).

Each of these flows must be performed by a marketing intermediary for any channel
to deliver the goods to the final consumer. Thus, each producer must decide who will
perform which of these functions in order to deliver the service output levels that the
target consumers desire. Producers delegate these flows for a variety of reasons.
First, they may lack the financial resources to carry out the intermediary activities
themselves. Second, many producers can earn a superior return on their capital by
investing profits back into their core business rather than into the distribution of their
products. Finally, intermediaries, or middlemen, offer superior efficiency in making
goods and services widely available and accessible to final users. For instance, in
overseas markets it may be difficult for an exporter to establish contact with end
users, and various kinds of agents must therefore be employed. Because an
intermediary typically focuses on only a small handful of specialized tasks within the
marketing channel, each intermediary, through specialization, experience, or scale of
operation, can offer a producer greater distribution benefits.

1.6. Functions of a Distribution Channel

The main function of a distribution channel is to provide a link between production

and consumption. Organizations that form any particular distribution channel perform
many key functions:

Information Gathering and distributing market research and

intelligence, important for marketing planning.

Promotion Developing and spreading communications about

offers.

Contact Finding and communicating with prospective buyers.

 Matching Adjusting the offer to fit a buyer's needs, including
grading, assembling and packaging.

Negotiation Reaching agreement on price and other terms of the

offer.

Physical Distribution Transporting and storing goods.

Financing Acquiring and using funds to cover the costs of the

distribution channel.

Risk taking Assuming some commercial risks by operating the

channel (e.g. holding stock).
All of the above functions need to be undertaken in any market. The question is who
performs them and how many levels there need to be in the distribution channel in
order to make it cost effective.

1.7. Numbers of Distribution Channel Levels

Each layer of marketing intermediaries that performs some work in bringing the
product to its final buyer is a "channel level". The figure below shows some
examples of channel levels for consumer marketing channels:
In the figure above, Channel 1 is called a "direct-marketing" channel, since it
has no intermediary levels. In this case the manufacturer sells directly to
customers. An example of a direct marketing channel would be a factory outlet
store that sells directly through her own retail stores, for example, Bata. This is
the simplest and the shortest channel. It is fast and economical. Small producers
and producers of perishable commodities also sell directly to the local
consumers. Big firms adopt direct selling in order to cut distribution cost and
because they have sufficient facilities to sell directly to the consumers. The
producer or the entrepreneur himself performs all the marketing activities.

The remaining channels are "indirect-marketing channels".

Channel 2 contains one intermediary. In consumer markets, this is typically a

retailer. In this channel, the producer sells to big retailers like departmental
stores and chain stores who in turn sell to customer. This channel is very popular
in the distribution of consumer durables such as refrigerators, TV sets, washing
machines, typewriters, etc. This channel of distribution is very popular these days
because of emergence of departmental stores, super markets and other big retail
stores. The retailers purchase in large quantities from the producer and perform
certain marketing activities in order to sell the product to the ultimate consumers.
The consumer electrical goods market in the UK is typical of this arrangement
whereby producers such as Sony, Panasonic, Canon etc. sell their goods directly
to large retailers such as Comet, Dixons and Currys which then sell the goods to
the final consumers.

Channel 3 contains two intermediary levels - a wholesaler and a retailer. A

wholesaler typically buys and stores large quantities of several producers’ goods
and then breaks into the bulk deliveries to supply retailers with smaller quantities.
For small retailers with limited order quantities, the use of wholesalers makes
economic sense. This arrangement tends to work best where the retail channel is
fragmented - i.e. not dominated by a small number of large, powerful retailers
who have an incentive to cut out the wholesaler. A good example of this channel
is most suitable for the products with widely scattered market. It is used in the
distribution of consumer products like groceries, drugs, cosmetics, etc.
1.8. Types of Intermediaries

There is a variety of intermediaries that may get involved before a product gets from
the original producer to the final user. These are described briefly below:

Retailers

Retailers operate outlets that trade directly with household customers.

Retailers can be classified in several ways:

o Type of goods being sold ( e.g. clothes, grocery, furniture).

o Type of service (e.g. self-service, counter-service).
o Size (e.g. corner shop; superstore).
o Ownership (e.g. privately-owned independent; public-quoted retail group).
o Location (e.g. rural, city-centre, out-of-town).
o Brand (e.g. nationwide retail brands; local one-shop name).

Wholesalers

Wholesalers stock a range of products from several producers. The role of the
wholesaler is to sell onto retailers. Wholesalers usually specialize in particular
products.

Distributors and dealers

Distributors or dealers have a similar role to wholesalers – that of taking

products from producers and selling them on. However, they often sell onto
the end customer rather than a retailer. They also usually have a much
narrower product range. Distributors and dealers are often involved in
providing after-sales service.

Franchises

Franchises are independent businesses that operate a branded product

(usually a service) in exchange for a license fee and a share of sales.
 Agents

Agents sell the products and services of producers in return for a commission
(a percentage of the sales revenues).

1.9. Direct and Indirect Marketing in Distribution

Direct Marketing
A key decision a business has to make about distribution is whether to sell
―direct‖.

This method of distribution is usually called “direct marketing”.

Direct marketing means selling products by dealing directly with consumers

rather than through intermediaries.

Traditional methods include mail order, direct-mail selling, cold calling, telephone
selling, and door-to-door calling. More recently telemarketing, direct radio selling,
magazine and TV advertising, and on-line computer shopping have been
developed.

The main advantages of selling direct are that there is no need to share profit
margins and the producer has complete control over the sales process. Products
are not sold alongside those of competitors either.

There may also be specific market factors that encourage direct selling:

o There may be a need for an expert sales force, to demonstrate products,

provide detailed pre-sale information and after-sales service.
o Retailers, distributors, dealers and other intermediaries may be unwilling to
sell the product.
o Existing distribution channels may be owned by, or linked to, competing
producers (making it hard to obtain distribution by any other means than
direct).
However, there are significant costs associated with selling direct which may be
higher than the costs associated with using an intermediary to generate the same
level of sales.

There are several potential advantages of using an intermediary:

o More efficient distribution logistics.

o Overall costs (even taking into account the intermediaries’ margin or

commission) may be lower.

o Consumers may expect choice (i.e. the products and brands of many
producers) at the point of sale.

o Producers may not have sufficient resources or expertise to sell direct.

Indirect Marketing

It is the system the marketer reaches the intended final user with the help of
others. These resellers generally take ownership of the product, though in some
cases they may sell products on a consignment basis (i.e., only pay the supplying
company if the product is sold). Under this system intermediaries may be
expected to assume many responsibilities to help sell the product.

Indirect methods include:

o Single-Party Selling System

Under this system the marketer engages another party who then sells and
distributes directly to the final customer. This is most likely to occur when
the product is sold through large store-based retail chains or through
online retailers, in which case it is often referred to as a trade selling
system.
 o Multiple-Party Selling System

This indirect distribution system has the product passing through two or
more distributors before reaching the final customer. The most likely
scenario is when a wholesaler purchases from the manufacturer and sells
the product to retailer.

o Stream Line Distribution

To improve the efficiency of process, business organization by simplifying

or eliminating unnecessary steps, using modernizing techniques, or taking
other approaches.

1.10. Distribution Intensity

There are three broad options - intensive, selective and exclusive distribution:

o Intensive distribution
It aims to provide saturation coverage of the market by using all available
outlets. For many products, total sales are directly linked to the number of
outlets used (e.g. cigarettes, beer). Intensive distribution is usually
required where customers have a range of acceptable brands to chose
from. In other words, if one brand is not available, a customer will simply
choose another.

o Selective distribution
It involves a producer using a limited number of outlets in a geographical
area to sell products. An advantage of this approach is that the producer
can choose the most appropriate or best-performing outlets and focus
effort (e.g. training) on them. Selective distribution works best when
consumers are prepared to "shop around" - in other words - they have a
preference for a particular brand or price and will search out the outlets
that supply.
 o Exclusive distribution
It is an extreme form of selective distribution in which only one wholesaler,
retailer or distributor is used in a specific geographical area.

1.11. Distribution Channel Strategy

Following are the factors that influence the choice of distribution channel by a
business:

o Market factors

An important market factor is "buyer behavior"; how do buyers want to

purchase the product? Do they prefer to buy from retailers, locally, via mail
order or perhaps over the Internet? Another important factor is buyer
needs for product information, installation and servicing. Which channels
are best served to provide the customer with the information they need
before buying? Does the product need specific technical assistance either
to install or service a product? Intermediaries are often best placed to
provide servicing rather than the original producer - for example in the
case of motor cars.

The willingness of channel intermediaries to market product is also a

factor. Retailers in particular invest heavily in properties, shop fitting etc.
They may decide not to support a particular product if it requires too much
investment (e.g. training, display equipment, warehousing).

Another important factor is intermediary cost. Intermediaries typically

charge a "mark-up" or "commission" for participating in the channel.
This might be deemed unacceptably high for the ultimate producer
business.
 o Producer factors

A key question is whether the producer have the resources to perform the
functions of the channel? For example a producer may not have the
resources to recruit, train and equip a sales team. If so, the only option
may be to use agents and/or other distributors.

Producers may also feel that they do not possess the customer-based
skills to distribute their products. Many channel intermediaries focus
heavily on the customer interface as a way of creating competitive
advantage and cementing the relationship with their supplying producers.

Another factor is the extent to which producers want to maintain control

over how, to whom and at what price a product is sold. If a manufacturer
sells via a retailer, they effective lose control over the final consumer price,
since the retailer sets the price and any relevant discounts or promotional
offers. Similarly, there is no guarantee for a producer that their product/(s)
are actually been stocked by the retailer. Direct distribution gives a
producer much more control over these issues.

o Product factors

Large complex products are often supplied direct to customers (e.g.

complex medical equipment sold to hospitals). By contrast perishable
products (such as frozen food, meat, bread) require relatively short
distribution channels - ideally suited to using intermediaries such as
retailers.

1.12. Management of Channel Systems

Although middlemen can offer greater distribution economy to producers, gaining

cooperation from these middlemen can be problematic. Middlemen must
continuously be motivated and stimulated to perform at the highest level. In order to
gain such a high level of performance, manufacturers need some sort of leverage.
Researchers have distinguished five bases of power: coercive (threats if the
middlemen do not comply), reward (extra benefits for compliance), legitimate (power
by position—rank or contract), expert (special knowledge), and referent
(manufacturer is highly respected by the middlemen).

As new institutions emerge or products enter different life-cycle phases, distribution

channels change and evolve. With these types of changes, no matter how well the
channel is designed and managed, conflict is inevitable. Often this conflict develops
because the interests of the independent businesses do not coincide. For example,
franchisers, because they receive a percentage of sales, typically want their
franchisees to maximize sales, while the franchisees want to maximize their profits,
not sales.

The conflict that arises may be vertical, horizontal, or multichannel in nature.

When General Motors Corporation comes into conflict with its dealers, this is a
vertical channel conflict. Horizontal channel conflict arises when a franchisee in
a neighboring town feels a fellow franchisee has infringed on its territory. Finally,
multichannel conflict occurs when a manufacturer has established two or more
channels that compete against each other in selling to the same market. For
example, a major tire manufacturer may begin selling its tires through mass
merchandisers, much to the dismay of its independent tire dealers.

In the modern market, to manage the conflicts among intermediaries, marketers

have developed a new type of distribution channel which is called the vertical
marketing system.

Vertical Marketing System

It is structure in which intermediaries act as a unified system. One channel

member will possess a huge power upon others. Therefore lead to an
improvement in cooperation.

Types of Vertical Marketing System

There are three types of vertical marketing system. The most basic type is
corporate VMS which combines successive stages of production and
distribution under single ownership (Kotler.P, 2001). The next one is called
contractual VMS which consists of independent businesses at different levels
of production and distribution. They are tied together through contracts to
obtain advantages and amelioration in sales. Conflicts are managed through
contractual agreement among channel members. Finally, administer VMS
coordinates successive stages of production and distribution through the size
and power of one of the parties. Leadership is assumed by one or a few
dominant channel members.

Horizontal Marketing Systems

Apart from vertical marketing systems, another channel development is the

horizontal marketing system. The system developed when two or more
companies cooperate, or form a new company by combining assets, which
will provide greater benefits than by acting alone. Usually a horizontal
marketing system is established so that the individual members can combine
resources to make the most out of the marketing situation. This system is also
effective in global distribution channel.

Hybrid Marketing Systems

A hybrid marketing channels is another name for multichannel distribution

system in which one firm establishes two or more separate marketing
channels to serve its customers. This system is greatly improving in recent
years. Companies are creating new hybrid marketing systems that promise to
become the dominant marketing design. These systems offer greater
coverage and reduced costs, but they are also hard to manage.
Companies will find many conveniences and advantages when facing large
and complex markets. However, hybrid channel systems would generate
conflict as more channels are competing for sales and profit.
1.13. Distribution System of Ice-cream Companies

Distribution
One of the competitive advantages of the ice-cream companies is its availability,
which is ensured by extensive distribution. The distribution of ice cream is different
from other products. To keep it in a good form it must be chilled at appropriate
temperature. For this purpose deep freezers are used, which are provided by the
company. However, the running costs are to be paid by the retailers. For this
purpose the ice-cream companies gives a maximum margin of 18% to its
retailers\distributors, which is distributed over entire channel.
Pakistan is divided in three major sections. These are as follows:
1. North (Islamabad, Peshawar and Northern areas).
2. Central (Lahore and Central Punjab).
3. South (Sindh and Baluchistan).

Distribution Channel
Distribution channel consists of all the people and organizations, which are involved,
in the physical distribution of goods. Selection of proper distribution channel is very
important aspect because if the channel is managed efficiently, companies can save
high costs and thus generate profits. The cooperation of channel members is also of
vital importance. Distribution is making the product available but this availability
should ensure that product must be:

At right place
At right time
In right condition

If there is any deficiency in any of these basic elements of distribution, the future of
product would be uncertain. Distribution is such an activity, which could decide the
fate of the product.
Mostly the ice-cream companies such as WALL’S have a Hybrid Distribution System.
It reaches different customers through different systems. WALL’S is using two types
of distribution channels, both are indirect channels. HICO has no proper distribution
system, they distribute directly from their factory. OMORE’ is a new brand in the
market from last one year and they are developing their distribution system.
Currently they have 2 cold stores, one is situated in Lahore and other is in
Islamabad. Yummy has one warehouse / cold store in Multan and one in Islamabad
and they distribute their products in Lahore region directly from their factory.

1. Producer - Distributor - Retailer - Consumer

This is commonly used, in which the ice-cream companies send the products
to the local distributors who supply the products to the retailer in the required
quantity. The retailer then sells it to the customer. The specialty and
effectiveness of this system is excellent. The reason for such an excellent
distribution system is the distribution policy. If a retailer wants to sell an ice
cream, the investment he needs to do is as:

Security for Investment on

Board for
Retailer Total investment required
advertisement
the freezers Ice cream products

Others 15000 12-15,000 3000 30,000

WALL’S Nil 12-15,000 Nil 15,000

That’s why most retailers are attracted to the WALL’S. Another important thing
which needs to be discussed about the distribution is that during this
distribution channel, the standard temperature of the cold chain is maintained.
 2. Producer - Stock Pointer - Dealer - Retailer - (Cycles) - Consumer

The second type of system was more a short term distribution system which
has just for the introduction stage to actually made the product reach
everywhere and the system was more of creating awareness than actual
retailing purpose. But the cycle distribution system yielded excellent results in
terms of sales and creating awareness about the products. Now the cycle
contributes a big percentage of shares in the overall sale of the company. So
this has now become a permanent distribution channel of the ice-cream
companies. One of the major reasons of early success and clean sweep given
by WALL’S is its availability, which is ensured through extensive distribution.
There is not even a single city in the country where one cannot find a walls
freezer or hear the sweet music of the trike (tricycles), which acts as a direct
marketing for it. Thus, WALL’S has always tried its best to ensure the
availability of the product as close to the customers as possible and WALL’S
has been very successful in that.

Distribution Strategies

There are two main distribution strategies, which ice-cream companies have very
effectively used.

In first strategy include incentives like free deep freezers, discounts on bulk
purchases.

Advertising campaign that reminds and persuades customers to buy ice

cream supports 2nd strategy, which is facilitated by price offs, which are
frequently offered by the company.
1.14. Statement of the problem

The problem which we will have to resolve in our research work is that, we have to
analyze effective distribution systems of different ice-cream companies. The needs
and wants of the distribution channel members and the problems faced by them.
How many retailers, wholesalers and distributors are currently providing ice-cream
products to the customers. What so ever the requirement might be, so here we are
concerned to check out these problems or some other problems which will be
incurred during the research work.

1.15. Significance of the study

By studying all these problems through different fact finding techniques and
accomplishing the objectives of the research, we will reach to certain results which
help us to make certain conclusions that whether the distribution system adopted by
different ice-cream companies is effective or not and if any of the company has no
effective distribution system then what criteria and ways they should adopt to have
an effective distribution system in their company and how they can increase their
market share with the help of proper and effective distribution system.

1.16. Objectives of the Research Project

To understand the distribution system of different ice-cream companies.

To find the market share of each company.
To determine the key areas of strength and weakness for each company’s
distribution system.
To find the lacunas in the current distribution system.
To compare the sales and distribution effectiveness of each company.
To find the comfort level of the dealers with the current distribution system.
To identify the issues faced by the retailers, wholesalers and distributors.
To get the feedback from retailers, wholesalers and distributor.
To know whether wholesaler is able to satisfy the retailers needs in their
specific area or not.
To identify the area of service in which company needs to improve.
To help the company in designing proper strategies for effective distribution
system.
Chapter

2
Literature Review
&
Theoretical Framework
2. Literature Review

We review the literature starting from the basic description about the distribution
channels, and then zooming in to distribution channel conflict, discount structure
dynamics for the distributors, distribution logistics and warehouse distribution, and
finally the effectiveness of distribution channels that how distribution channels can
work more effectively and efficiently in success of any organization.

1. According to Bizzhelp24, (A UK business and finance resource providing

Business Help, for individuals and Traders) wrote an article about “Distribution
Channels” that is published in (2005). This article describes the term of
distribution and the importance of different distribution channels that how they
can be used efficiently and effectively in the businesses. According to this article
distribution is all about getting the products / services to the right people at the
right time with special consideration for profit and effectiveness. The successful
marketing does not end when a business has developed a product / service and
has found its appropriate target audience with a view to selling it at the right price.
The main issue that needs to be faced is that how they are going to distribute and
sell those products / services to its ultimate consumers. When a product / service
are purchased by a consumer, it may have been bought directly from the
business, or it may have been through a number of intermediaries (wholesaler,
retailer, etc): these are known as distribution channels. These distribution
channels are influenced largely by the type and size of the business. The most
important and vital part of administrating and selling the products is deciding how
they will be distributed; this affects the costs, price and profit of the products; as
well as affecting how accessible they are for customers.

In this article they have described three common methods of distribution which
are as follows:

Keeping stock in your premises or a warehouse, and distributing directly to

customers.
 Distributing to a number of local warehouses, which then distribute to the
customers.
Distributing to regional warehouses, which distribute to local centers, and
then deliver to customers.

They said that if the customers are local, it would make sense to distribute from a
single place. The success of each system will depend on the amount of orders,
as well as the locations of customers. If all the customers are local, it would make
sense to distribute from a single place; where as if customers are scattered, a
regional system may be more effective.

2. K. Mackillop, (2009) in the article “Defining the Distribution Channels for

Business” describes that it is important to define the best distribution channels
for the product, and for the customers. According to this article the distribution
channel is the way the product gets to the customer. He argues that traditionally,
businesses relied on a single distribution channel but now the most successful
businesses are those who use multiple routes to reach a broader customer base.
He also gave some examples of a single and a multiple distribution channels to
reach to customers. According to him, for specialized, service-only ventures, the
employees will personally deliver to the client, either on-site or at their place of
business. Examples of these types of businesses are cleaning services, auto
detailing, personal coaching, consulting, personal training, and training.
Restaurants and other food service ventures also fall into this category. Selling
retail products, on the other hand, allows multiple options for distribution online
sales, brick-and-mortar storefront, direct sales through sales reps, festivals or
shows, etc. The author also put emphasis on the distribution channels that are
adopted by the competitors. He says that the organization should consider the
distribution routes used by their closest competitors to analyze that whether they
are using the most effective channels or not. He further said that the target and
potential customers of an organization also plays an important role in the
distribution channels selected by the organization. If organizations are selling
directly to the end user, they probably have more options than if they are
targeting distributors to market their product. If product is new to the market,
consider where the target market currently purchases similar products. If it is
 easier for the customers to buy from you rather than your competitors, they will
come. The organizations should consider all three factors product, customers,
and organization itself before deciding the best routes for the business. If
possible, consider developing multiple distribution channels because the more
ways the product can get to the customers, the bigger is the potential market.

3. Richard Earls, (2009) in his article “Understanding Distribution Channels”

describes distribution channel as a chain of tactics and people through which the
organization gain access to clients. According to him if an organization has a
website that is a distribution channel, as are the trade shows to sell the services;
face to face meeting with a client is another distribution channel. Each distribution
channel might employ a variety of tactics, specially crafted for that particular
channel. He says that it is important to recognize distribution channels and the
role they play in generating business. The next step is to focus on the tactics one
use to drive business through each of these channels. Develop a set of finely
honed tactics for each marketing collateral, promotions, allies and events.
Calendar your efforts to keep them organized and sharp. Look at each
distribution channel you have and fine tune all of the tactics that surround them.
The organization should focus on each as a separate opportunity.

4. Scott White, (2006) in his article “All About Fulfillment Marketing Firms”
talked about the big shift from traditional marketing systems to the increasing use
of Internet marketing which makes business very difficult for small to medium-
sized manufacturers who want to cut costs and handle their own distribution and
promotion. It's understandable for large manufacturers that have opened their
own stores along with major retailers favoring their own brands, are pushing
small players aside. Major players have the distribution systems and sales
information systems to make their marketing campaigns work smoothly and
effectively. That efficacy simply drowns out smaller players trying to get retailer's
attention. They know what's working and what isn't right away and can respond
quickly. According to the author, marketing fulfillment is the process of delivering
marketing materials through marketing distribution channels, along with providing
sales training, and communicating with channel members to ensure the complete
marketing campaign is carried out on time. Without this integration of marketing
 and promotional materials, and the coordinated timing of their delivery to retail
and wholesale locations, the retail advertising campaign won't achieve the results
desired. He further said marketing channels today are shorter than they used to
be, but they're more complex. Even with online and electronic payment systems,
marketing materials have to be created and distributed through larger distances
and overcome stronger distribution barriers. He says that effective marketers can
shift resources at just the right time to make the promotions ineffective. If the
organization coming from a weak distribution position, competitors can easily
take advantage of it. So the organization should have a strong distribution
network in order to compete with the competitors more effectively.

5. John Henderson, (2007) in his article “Discount Structure Dynamics” talked

about discount pricing structures for distributors. He says that distributors
discount pricing structures is one of the most misunderstood and underutilized
elements in distributor marketing programs. The direct affect on the company's
and their distributor's profitability makes discount structures the most important
element in the business relationships. According to him, the truth behind this fact
is that most of the existing discount structures were not designed to support
today's marketing strategies and need to be re-evaluated. Many companies
change the structure using a "team" approach, but few have an individual that
owns the responsibility. If companies are avoiding making changes to their
discount structures, fearing that the end result will be perceived as either "a price
increase" (which will reduce unit sales) or a "a price decrease" (which will reduce
profitability). The author further says that a well-designed distributor discount
pricing structure helps in achieving marketing objectives, which are as follows:

Increase market share.

Establish presence in a distribution channel.

Emphasize particular product lines.

Discipline and control your marketing expenditures.

Reduce costs.

Differentiate between distributors.

Communicate values and strategies.

 Acknowledge and reward channel excellence.

Acknowledge and reward loyalty.

Well-structured discount programs are designed to compensate the distributor for

performing marketing functions (and the costs associated with performing these
functions) that the manufacturer would otherwise be responsible for:

Carrying inventory

Sales and technical support

Order handling

Extending credit

The author believes that activity-based discounting will be the future basis for all
channel compensation. The roles and responsibility of distributors and the basis
for their compensation change as manufacturers work to take costs out of their
channel systems and improve customer service. Many firms are attracted to
activity-based discounting because it is fair and generally supportive of their
overall marketing strategies. In essence, an activity-based discount structure
"pays" the channel for "what it does," or "you get what you pay for."

6. Phil Morettini, (2006) in his article “Distribution Channel Conflict” talked

about the conflict between distribution channels and what strategies can be used
to resolve that conflict between the distribution channels. He also quoted an
example of the conflict between two different distribution channels in his article.
The author gave some recommendations to resolve the distribution channel
conflict, he said sell through every channel that makes sense. There are many
potential channels for the products: direct, OEM, retailers, independent sales
reps, strategic partner referrals, and more. In extreme cases, all of these potential
channels may be appropriate ways to deliver the company’s products to the
market. If the organization is honest and fair with people, potential channel
conflict shouldn't unnecessarily stop an organization from maximizing revenue by
using multiple methods of delivering the product to the market. There is a range
of customer profiles in the market. Some want to buy everything through their
trusted integrator, who helps give them a third party evaluation of the product's
virtues. Others want to deal directly only with the manufacturer or developer of
 the specific product they are purchasing. A third category of buyers likes to buy
as much as possible through their favorite large manufacturer this is a great
reason to OEM your product to the IBMs of the world. In each of these situations,
the channel that is best positioned, via relationship or type of support, should and
usually will get the deal. The last category of buyer, however, is different. This is
the bargain basement buyer, the one who couldn't care less who he buys from,
as long as he gets the lowest price. Bargain basement buyer is a price conscious
buyer that will often bring cross-channel conflict to the forefront. Since they are
seeking the lowest price, they end up shopping the purchase across many
potential sources for the product, creating great price competition among your
channel partners. This is where conflict is often born.

7. Gordon Petten, (2006) in his article “Distribution Logistics and Warehouse

Distribution” said that distribution logistics plays a valuable and important role in
any warehouse distribution system. As every warehouse is unique, and thus has
its own unique distribution logistics. It can be something as simple as the number
of floors or something as complex as the computer system used. But whatever
causes them to be unique, distribution logistics must be taken into account when
designing any service which utilizes warehouse distribution. According to the
author, a retail business is only as good as its channel of distribution. It could be
equally stated that distribution logistics are the current that makes that channel
flow. Many managers make the mistake of creating a "one size fits all" approach
to warehouse distribution. They believe that all warehouses should operate in
essentially the same manner, and the way to achieve this uniformity is through
uniform distribution logistics. Distribution logistics in any warehouse distribution
system should be viewed in much the same way individual workers are viewed. It
is exactly the same way with the distribution logistics in any warehouse
distribution system. What works in one warehouse, may not work in another.
What optimizes the distribution systems in one warehouse may cause problems
in another. However, this is not an excuse to allow retrograde practices to
continue. If a certain warehouse is truly underperforming, something needs to be
done; and uniformity could be the answer. The author said that it is merely to say
that distribution logistics is not a "one size fits all" affair, and should not uniformly
be treated as such. Each warehouse should be studied, its practices examined,
 and then decisions can be made. Obviously, distribution logistics in a warehouse
distribution system require some of the most care and attention of anything in the
distribution chain. So think twice before making any decision.

8. S.Shiny Niar, (2009) in her article “Innovation in Logistics Industry”

describes the design of a multi-tiered distribution network. She says that the key
to a successful distribution strategy will be proximity. The tail that wags the
distribution dog is transportation reliability. Transportation reliability or unreliability
will play a key role in determining the number of nodes required for distribution
and the inventory to support it. Even firms with fast-moving goods will be
required to set up decentralized, multi-tiered distribution networks that are:

Rely more heavily on Inventory.

Reside close to the Market.
Use Technology to provide visibility and Collaboration.
Select a Key Partner.

9. Stephen Kavita, (2009) in her article “Effective Distribution Channels that

affect Product Affordability” says that businesses operating in a product
oriented market often vary in their distribution channels to suit their customers'
needs. This is due to frequent changes in the market trends and the economic
implications. Stephen also put more emphasis on different types of distribution
channels that are more effective for the businesses. According to her, businesses
will go for the least expensive distribution channels since the goods going
through these kind of structures will also be affordable, increasing the demand for
such goods. She gives more importance to direct selling and avoid middlemen
because an organization can get immediate feedback from its customers and this
will also ensure healthy customer relation. She further talked about longer
distribution channel that may be used for durable goods as they take a longer
period before they expire. If the market for a product is unpredictable, the
producer may opt to sell through middlemen who will share the risks involved as
opposed to a producer shouldering all the risks. If a distribution channel has
many middlemen, then the final price paid by the consumer for the commodity will
be high. The government should also put checks on the use of certain distribution
channels, especially where middlemen seem to exploit consumers. As much as
 middlemen increase the price of a commodity, they do offer the advantage of
storing and delivering goods to consumers thus freeing the distributor from some
of the tasks.

10. Pedro Gondim, (2007) in his article “Marketing in Counseling” wrote about
improving marketing through delivery. He describes the concept of service over
delivery that provides a level of service beyond what you’ve promised your client
in your marketing message. According to him, the intention of service over-
delivery is to build goodwill with your clients. It’s intended that this goodwill will
translate into business benefits for you. Those benefits may be longer client
contracts, increased referral and stronger product endorsement. Generally, the
perceived gain from over-delivering the service would be greater than the cost to
provide the additional benefit to the client. He further said that every investment
requires a systematic approach in order to be successful and over-delivering is
not different. An organization will need to establish goals in order to measure the
outcomes of their efforts, and also to avoid having financial problems due to an ill
planned promotion. One can include the following points in their over-delivery
strategy:

Establish primary objectives.

Find a target market.
Choose your gift.
Create protocols.

11. Bob Segal, (2007) in his article “How to Motivate Sales Channel Partners with
a Formal Planning Process” said that in an ideal world, the key distributors
would develop annual business plans for their product line and work closely with
their distributor account managers to get the plans implemented. In reality, many
manufacturers skip this planning effort altogether. The success of many
manufacturers hinges on the actions of tens or even hundreds of independent,
mostly small, distributors. However, each distributor has different customer
targets, different product mixes, and different sales and technical skills. Many
lack strategic planning skills and marketing departments. A manufacturer can
hope for the best or use distributor plans to gain greater control over its
 distribution destiny. According to him, most manufacturers don't have the
capacity to handle hundreds of individual plans. Most of the manufacturers
experience the 80:20 rules, where 80 percent of their revenue comes from 20
percent of their channel partners. At a minimum, suppliers should require plans
from key partners. These plans should have highly customized content. However,
the typical items a manufacturer should expect, or even require, in a distributor
plan might include:

Business background.
Product/services summary.
Customer mix.
Marketing plan.
Training/personnel plan.
Sales plan.
Logistics plan.
Financial plan.

The annual meeting should take place between the account manager and the
owner or senior executive from the distributor. The actual meeting, to review last
year's results and revise the plan for next year, will likely require two to four
hours. In preparation, the account manager should review, in detail, the
distributor's sales history, local market trends/conditions, the manufacturers'
fulfillment of past commitments, new product plans, etc.

12. Thomas Cutler, (2006) in his article “The Role of CRM for Distributors” talked
about the impact of globalization on distribution channels. He stated that
globalization has made competition within manufacturing fierce in recent years.
Not only is cost effective, timely production key to success, but streamlined
procurement processes are also essential. Manufactured goods typically require
collaboration with several partners, so only manufacturers that have highly
efficient business processes will thrive and grow. According to Larry Caret sky,
(CEO of Commerce CRM for Manufacturing and Distribution), ―What is needed is
an intelligent, integrated, customizable application to connect the business
 processes that increase visibility for effective decision making, and extend
processes to customers and supply chain channel partners.‖ According to Caret
sky, ―Most software companies entered the CRM market with a handful of basic
products. However, end-user companies found these products didn’t always meet
their unique needs, resulting in a low success rate, which discouraged company
leaders. So, software vendors came out with variations of CRM software
designed to meet a broader range of needs, with varying degrees of success.
CRM software is only successful when it helps a company manage relationships
with its customers.

13. Gopinathan Thachappilly, (2009) in his article “How Business Distribute

Products to consumers” says that selecting a distribution channel is a major
business decision. He says that the distribution method an organization select
can significantly impact on customer satisfaction, as well as marketing costs of
the organization. If products are available in the right assortment and quantities at
the right place and time to the customer, the organization gains a distinct
competitive advantage. On the other hand, if prospective customers cannot find
widely publicized product at a convenient outlet, organization stand to lose large
volumes of sales. Distribution of the product is thus a strategic issue, as well as a
practical one intended to get the product to the final consumer. He further talked
about the distribution logistics where physical goods have to be moved from a
point of origin to points of consumption, issues of storage, handling and
transportation come into the picture. This can prove a complex exercise where
the variety and quantity involved are large. It will involve:

Moving the right assortment of merchandise in right quantities.

Using the right kinds of transport vehicles considering the nature of goods
and speed of delivery.
Routing and scheduling the movement to minimize overall transport costs.
Ensuring that the merchandise is received at the destinations when
needed.

Computer based logistics management solutions can be used to handle the

complexities involved.
14. Biggso, in his article “The Network Marketing Strategy” put emphasis on
distribution through local distributors. According to him, network marketing aims
at helping the manufacturers market their products to the end consumers via
independent local distributors. By engaging local distributors to market the
products of the company, the company is able to generate more income and
save on distribution and advertising cost. As most companies would spend
thousands of dollars to promote their products through TV commercials and
advertising, billboards and other forms of media. Promoting products and brands
could cost the company a lot of money that a good portion of the cost that you
pay for a certain product is actually added in to defray the advertising and
promotion expenses. Since the network marketing strategy will do away the
promotion and advertising cost by engaging local distributors to personally
promote the products to the their friends, relatives and colleagues, the company
will now be able to give the distributors big commissions. In most instances, the
network marketing company will give the local distributors direct commissions of
up to 30% of the sales generated by a local distributor.

15. According to Wharton School of the University of Pennsylvania, who

published an article in (2001), about “Changing Channel Distribution Models
in the internet age”. The author in this article said that the adoption of channel
power has meant a seismic shift in the relationships between consumers,
retailers, distributors, manufacturers and service providers. It presents many
companies with the option of reducing or eliminating the role of intermediaries
and lets those providers transact directly with their customers. According to Eric
K. Clemons, Wharton professor of operations and information management,
says that direct distribution offers a company significant opportunities, but it also
can present "numerous strategic uncertainties. He suggests that before launching
an e-commerce effort and bypassing its traditional distribution channels, a
business should analyze which products are appropriate for electronic
distribution, which consumer activities will be supported by which channel
participants, and which segments or groups of consumers are likely to adopt
electronic distribution.
2.1 Theoretical Framework

A theoretical framework is conceptual model of how the theory makes sense of

relationship among several factors that have been identified important for the
problem. This conceptual framework helps to study various variables and
relationships among them whether they are positive or negative. The variables which
we are going to study in our research work are dependent, independent and
moderating variables. Before going into the practical demonstration of variables
through flow chart, first we have to list and define the purpose of the each variable
that will be used in the research.

List of Factors List of Variables

Effective Distribution Dependent Variable
Distribution Channels (Wholesalers, Retailers) Independent Variable
Availability and Accessibility Independent Variable
Price Independent Variable
Time Independent Variable
Competitors Independent Variable
Customers of the organization Independent Variable
Distribution Logistics Independent Variable
Training, Communication & Discount Pricing Structure Moderating Variables

The dependent variable ―Effective Distribution‖ is the variable of primary interest and
to which the independent variables and moderating variables may cause to
influence. The basic purpose because of which the above variables are taken is to
analyze their influence either positive or negative, on the dependent variable.

If we talk about the distribution channels, it can have a both positive and negative
impact on the effective distribution of the products because distribution channels are
influenced largely by the type and size of the business. If the distribution channels
are according to the nature of the product and needs of the customers than it has a
positive relationship with the dependent variable and if it the distribution network is
not according to the nature of the product than distribution effectiveness decreases
and it has a negative relationship with the dependent variable.

Talking about availability and accessibility of the products, if products are physically
not available or cannot easily accessible then how they are going to be purchased.
The most important and vital part of administrating and selling the products is
deciding how they will be distributed; this affects the costs, price and profit of the
products; as well as affecting how accessible they are for customers.

The price is also an important factor that has an impact on the effective distribution
because if the prices of the products are high, there is no demand in the market for
the particular product so it has a negative relationship with the dependent variable so
the prices of the products should be affordable for customers so that it will create a
positive relationship with the effective distribution and it is only possible when there
is a demand in the market and prices are affordable for the customers.

If we talk about time, it is also a very important independent variable that has a major
impact on the effective distribution because distribution is all about getting the
products / services to the right people at the right time with special consideration for
profit and effectiveness. If products are available in the right assortment and
quantities at the right place and time to the customer, the organization gains a
distinct competitive advantage.

Competitors have a great influence on the effective distribution system of the

organization and the organization should consider the distribution routes used by
their closest competitors to analyze that whether they are using the most effective
channels or not. If an organization will keep her eye on the competitors then they
can have more effective distribution system otherwise both the variables have a
negative relationship with each other.

The target and potential customers of an organization also plays an important role in
the distribution channels selected by the organization. If organizations are selling
directly to the end user, they probably have more options than if they are targeting
distributors to market their product. If product is new to the market, consider where
the target market currently purchases similar products. If it is easier for the
customers to buy from you rather than your competitors, they will come. Distribution
logistics plays an important role in effective distribution because distribution logistics
are the current that makes that channel flow and distribution logistics in any
warehouse distribution system should be viewed in much the same way individual
workers are viewed. It requires more care and attention of anything in the distribution
chain. So in this manner it has a positive relationship with the effective distribution.

Now at the end we talk about the moderating variables that have a strong contingent
effect on the independent variable-dependent variable relationship. These
moderating variables are ―Training, Communication and Discount Pricing
Structures‖. The presence of the third variable (Moderating Variable) modifies the
original relationship between the independent and dependent variables. Sales
training and communicating with channel members ensures that the complete
marketing campaign is carried out on time. Without this integration of marketing and
promotional materials, and the coordinated timing of their delivery to retail and
wholesale locations, the retail advertising campaign won't achieve the results
desired. This training also helps the key distributors in developing annual business
plans for their product line and work closely with their distributor account managers
to get the plans implemented. As each distributor have different customer targets,
different product mixes, and different sales and technical skills, so they have to do
their best to gain greater control over its distribution destiny. So the training and
communication with the channel partners can also enhance the relationship between
independent and dependent variables. Discount Pricing Structure is an also an
important moderating variable that can entirely change the relationships between
dependent and independent variables because if companies are avoiding making
changes to their discount structures, fearing that the end result will be perceived as
either "a price increase" (which will reduce unit sales) or a "a price decrease" (which
will reduce profitability), so it has a negative impact on the effective distribution. For a
positive relationship among variables there should be a well-designed distributor
discount pricing structure which helps in achieving marketing objectives set by the
organizations and that also compensates the distributor for performing marketing
functions (and the costs associated with performing these functions).
The research framework of an effective distribution is therefore depicted as follows:

Research Framework

Distribution
Channels
(Retailers and Distributors)

Availability and
Accessibility

Price

Time

Effective
Distribution

Competitors Dependent Variable

Training,
Customers of the
Communication
Organization and Discount
Pricing
Structure

Distribution
Logistics

Independent Variables Moderating Variables

Chapter

3
Research Methodology
3. Research Methodology

Research Design

In our research project we will use various tools of exploratory research. This
research will be done to gain background information of the problem. An initial
research will be conducted to clarify and define the nature of the problem.
Descriptive research will be done where questionnaires will be given to the
respondents to analyze the distribution effectiveness.

o Define needed information

 The needed information is to analyze the distribution system of

different ice cream companies.

 The research will be conducted in the sample distribution channels

and warehouses of different ice cream companies.

 Following ice cream companies have been taken as a sample from

Punjab region to conduct the research.

Wall’s.
Hico.
Omore’.
Yummy.
Gourmet.

o Specify measurement and scaling procedures

Graphs, tables, diagrams and other data presentation techniques to be

used to measure the results to conclude.
 o Construct and pretest questionnaire

The questionnaire should be prepared while reviewing the objectives to be

achieved, discussions with the instructors, making of the questionnaire
according to the research problems and finally approved by the instructor.

Sample

The sample size on which we will conducted our research is approximately

consists of 70 respondents which includes retailers and distributors of the above
mentioned ice cream companies. The sample includes managers, workers and
other employees of those distribution channels.

o Sampling Technique

We will use the technique of random sampling in our research.

o Sampling procedure

Sample size should be categorized and represents the whole population.

Data collection

Data will be collected through primary and secondary resources. The source for
primary data will be distributors and retailers. The source for secondary data will
be the articles published by different magazines, journals newspapers, text books
etc. Direct personal structured and unstructured interviews with samples
respondents will be conducted so the data collected will be first hand and original
in character.

o Tool/instrument of data collection

Comprehensive questionnaires will be used to collect the desired

information. We will design different questionnaires for retailers and
 distributors so that we can get first handed and accurate information from
them about the effective distribution system of the company. Pretesting of
questionnaire will be carried out to determine how it will serve the purpose
of obtaining needed data.

 Questionnaire Design

The questionnaire consists of predominantly closed ended and

option based question in order to provide some ease to the
respondents. In order to make the questionnaire more effective
following points are covered:

Uniformity in questions.

Reduce subjectivity.

Easier to receive response.

Less time consuming.

The questions tried to cover all aspects required to analyze the

effective distribution system of each company.

Data Analysis Procedure

Data collected through the questionnaires will be analyzed and interpreted. The
statistics analysis will be carried out with the help of computer software Microsoft
Excel 2007 and descriptive statistics .The relevant data which we will get from
various other sources will also add more value in our result interpretation.
Chapter

4
Data Analysis
&
Presentation
Data Analysis of
Retailers
Q 1):- Which of the following companies you are associated with?

Question 1
60%

50%

40%

30%

20%

10%

0%
Wall's Yummy Hico Omore' Gourmet Others
Series 1 55% 13% 3% 22% 5% 2%

Interpretation:
From our survey, we have observed that 55% of the retailers are associated with
Wall’s, 13% with Yummy,3% with Hico, 22% with Omore’, 5% with Gourmet and
others include only 2%.
Q 2):- From how long you are associated with the company?

Question 2
120%
100%
80%
60%
40%
20%
0%
Wall's Yummy Hico Omore' Gourmet Others
0-5 years 61% 12% 50% 100% 33% 100%
5-10 years 39% 25% 50% 0% 67% 0%
10-15 years 0% 63% 0% 0% 0% 0%
Above 15 years 0% 0% 0% 0% 0% 0%

Interpretation:
This graph shows the association of retailers with different ice-cream companies.
From our conducted survey we have found that 61% of the retailers of Wall’s are
associated with the company from last 0-5 years and 39% retailers are associated
from last 5-10 years. Similarly, the maximum retailers of the Yummy i.e. 63% are
associated from last 10-15 years which shows the company has a good relation with
its intermediaries.12% are associated from last 0-5 years and 25% retailers are
associated with Yummy from 5-10 years. If we talk about Hico, 50% of the retailers
are associated from last 5 years and 50% are from last 5-10 years. In Omore’, all the
retailers are associated from last 1 year because this company is new in the market.
33% of the Gourmet retailers are associated from last 5 years and 67% are from last
10 years with the company. Others include the company who manufacture ice-cream
locally so that’s why they are associated from last 5 years.
Q 3):- Are you satisfied with quality of the products offered by the company?

Question 3
120%

100%

80%

60%

40%

20%

0%
Wall's Yummy Hico Omore' Gourmet Others
Yes 100% 87% 50% 100% 100% 100%
No 0% 13% 50% 0% 0% 0%

Interpretation:
In this question we wanted to analyze the satisfaction level of the retailers about the
quality of the products offered by the companies. From the results we concluded that
all the retailers of Wall’s are satisfied with the quality of the products. 87% of the
retailers of Yummy are satisfied while 13% are not. From Hico retialers we got mix
responses because 50% are satisfied and 50% are not satified with the quality of the
products. The retailers of Omore’, Gourmet and others are 100% satisfied with the
quality of the products.
Q 4):- Are you satisfied with the delivery / distribution services provided by the
company?

Question 4
120%
100%
80%
60%
40%
20%
0%
Wall's Yummy Hico Omore' Gourmet Others
Highly Satisfied 73% 13% 100% 8% 100% 100%
Satisfied 24% 75% 0% 92% 0% 0%
Neutral 0% 12% 0% 0% 0% 0%
Dissatisfied 0% 0% 0% 0% 0% 0%
Highly Dissatisfied 3% 0% 0% 0% 0% 0%

Interpretation:
This question is asked from the retailers about the current delivery and distribution
system of the companies they are associated with. The above graph shows the
satisfaction level of the retailers about different companies. The results show that
73% of retailers of Wall’s are highly satisfied with the distribution system. Similarly
Hico, Gourmet and others are also highly satisfied with the current delivery system.
75% retailers of Yummy and 92% retailers of Omore’ are satisfied with current
delivery system of the companies.
Q 5):- Are you satisfied with the performance of the sales person of the company?

Question 5
120%
100%
80%
60%
40%
20%
0%
Wall's Yummy Hico Omore' Gourmet Others
Highly Sarisfied 21% 0% 50% 8% 100% 100%
Satisfied 76% 87% 50% 92% 0% 0%
Neutral 0% 13% 0% 0% 0% 0%
Dissatisfied 0% 0% 0% 0% 0% 0%
Highly Dissatisfied 3% 0% 0% 0% 0% 0%

Interpretation:
The above graph shows the satisfaction level of the retailers about the performance
of the sales persons of the company whether the sales persons perform their duties
honestly or not and whether they are cooperative with the retailers or not. So in the
results the retailers who are associated with different companies’ shows their
satisfaction level for the sales persons of their respective companies.
Q 6):- What is your opinion regarding the sales person’s frequency of visits in a
month?

Question 6
120%

100%

80%

60%

40%

20%

0%
Wall's Yummy Hico Omore' Gourmet Others
Regular 94% 88% 0% 8% 100% 100%
Adequate 3% 12% 100% 92% 0% 0%
Inadequate 3% 13% 0% 0% 0% 0%

Interpretation:
This question is asked from the retailers who are associated with different
companies about sales person’s frequency of visits in a month to the retailer. From
the results we concluded that the sales persons of every company visit the retailer
regularly. We also found that the 13% retailers of Yummy respond that the visits of
the sales persons from Yummy are inadequate.
Q 7):- Evaluate the delivery system of company on following parameters.

Question 7 "Timeliness of Order"

120%

100%

80%

60%

40%

20%

0%
Wall's Yummy Hico Omore' Gourmet Others
In time delivery 85% 75% 50% 84% 100% 100%
Delay 9% 25% 50% 16% 0% 0%
Very Delay 6% 0% 0% 0% 0% 0%

Interpretation:
The graphs show whether the retailers receive the delivery in time or every time they
have to face some problems regarding the delivery of the products. From the results
we have concluded that almost all the companies deliver the products in time to the
retailer’s end. But we have also seen that sometimes there is a delay from the
companies in delivering the products in time but this thing happens very rarely.
 Question 7 "Completeness of Order"
120%

100%

80%

60%

40%

20%

0%
Wall's Yummy Hico Omore' Gourmet Others
Fully Completed 85% 50% 50% 69% 100% 100%
Partially Completed 12% 50% 50% 31% 0% 0%
Not Completed 3% 0% 0% 0% 0% 0%

Interpretation:
The graph shows whether the retailers receive the orders completely or not which
they have placed to the distributors or directly to the companies. From the results we
have concluded that almost all the companies deliver the products completely to the
retailers. But we have also seen that sometimes the order is partially completed due
some unexpected reasons but it happens rarely.
Q 8):- Are you satisfied with the current commission system given by the company?

Question 8
120%
100%
80%
60%
40%
20%
0%
Wall's Yummy Hico Omore' Gourmet Others
Highly Sarisfied 15% 63% 0% 0% 100% 100%
Satisfied 70% 37% 100% 77% 0% 0%
Neutral 3% 0% 0% 15% 0% 0%
Dissatisfied 6% 0% 0% 8% 0% 0%
Highly Dissatisfied 6% 0% 0% 0% 0% 0%

Interpretation:
The above graph shows the satisfaction level of the retailers about the commission
system given by the company. From our results we concluded that the retailers have
mix opinions about the commissions given by the company. Some retailers are
highly satisfied while we have also found some highly dissatisfied retailers who are
not happy with the current commission system.
Q 9):- How often do you find that expired products are supplied to you?

Question 9
120%
100%
80%
60%
40%
20%
0%
Wall's Yummy Hico Omore' Gourmet Others
Mostly 0% 0% 0% 0% 0% 0%
Rarely 0% 0% 0% 0% 0% 0%
Sometimes 15% 0% 50% 16% 33% 0%
Never 85% 100% 50% 84% 67% 100%

Interpretation:
This question is asked from the retailers to know whether they receive expired or
defective products from their respective companies. From the results we observed
that mostly the companies deliver new stock to the retailers but sometimes the
retailers also receive some defective and expired products from those companies.
Q 10):- What is the proportion of defective / expired products in total quantity supplied
to you?

Question 10
120%
100%

80%
60%
40%

20%
0%
Wall's Yummy Hico Omore' Gourmet Others
0-2% 100% 87% 50% 85% 100% 100%
2-4% 0% 13% 50% 15% 0% 0%
4-6% 0% 0% 0% 0% 0% 0%
Above 6% 0% 0% 0% 0% 0% 0%

Interpretation:
This graph shows if the retailers receive expired, out-dated and defective products
then in what quantity they receive such products. We found that the percentage of
such type of products is not more than 2-4 % of the total products delivered to the
retailers.
Q 11):- Which are the trade promotion schemes that you like the most?

Question 11
80%
70%
60%
50%
40%
30%
20%
10%
0%
Cash Coupons/
Gift Articles Bonus Packs Tours Others
Discounts Contests
Series 1 7% 75% 5% 3% 8% 2%

Interpretation:
This question is asked from the retailers in order to know that what kind of trade
promotional schemes they like the most. From the results we concluded that 75% of
the retailers like cash discounts, 7% like gift articles, 5% bonus packs, 3% coupons
and 8% like tours offered by the companies.
Q 12):- Evaluate the company on following parameters / activities?

Question 12 "Wall's"
70%
60%
50%
40%
30%
20%
10%
0%
Billing/
Order Credit Market Profit Claim
Documenta
Taking Period Support Margin Adjustment
tion
Very Good 25% 63% 0% 0% 63% 25%
Good 50% 25% 0% 50% 12% 36%
Satisfactory 25% 12% 25% 38% 25% 39%
Poor 0% 0% 12% 12% 0% 0%
Very Poor 0% 0% 63% 0% 0% 0%

Interpretation:
The above graph shows the evaluation of different activities of Wall’s company. The
activities includes: Order taking, Billing/Documentation, Credit period, Market
Support, Profit margin and claim adjustment. The retailers of Wall’s company
evaluated all the activities according to their satisfaction level with each of the
activity.
 Question 12 "Yummy"
70%
60%
50%
40%
30%
20%
10%
0%
Billing/
Order Credit Market Profit Claim
Documenta
Taking Period Support Margin Adjustment
tion
Very Good 25% 63% 0% 0% 63% 25%
Good 50% 25% 0% 50% 12% 36%
Satisfactory 25% 12% 25% 38% 25% 39%
Poor 0% 0% 12% 12% 0% 0%
Very Poor 0% 0% 63% 0% 0% 0%

Interpretation:
The above graph shows the evaluation of different activities of Yummy. The activities
includes: Order taking, Billing/Documentation, Credit period, Market Support, Profit
margin and claim adjustment. The retailers of Yummy evaluated all the activities
according to their satisfaction level with each of the activity.
 Question 12 "Hico"
120%
100%
80%
60%
40%
20%
0%
Billing/
Order Credit Market Profit Claim
Documenta
Taking Period Support Margin Adjustment
tion
Very Good 50% 0% 0% 0% 50% 50%
Good 0% 100% 0% 50% 0% 0%
Satisfactory 50% 0% 100% 0% 50% 50%
Poor 0% 0% 0% 50% 0% 0%
Very Poor 0% 0% 0% 0% 0% 0%

Interpretation:
The above graph shows the evaluation of different activities of Hico. The activities
includes: Order taking, Billing/Documentation, Credit period, Market Support, Profit
margin and claim adjustment. The retailers of Hico evaluated all the activities
according to their satisfaction level with each of the activity.
 Question 12 "Omore"
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Billing/
Order Credit Market Profit Claim
Documenta
Taking Period Support Margin Adjustment
tion
Very Good 23% 54% 0% 0% 8% 15%
Good 77% 46% 0% 46% 77% 62%
Satisfactory 0% 0% 0% 46% 15% 15%
Poor 0% 0% 31% 8% 0% 8%
Very Poor 0% 0% 69% 0% 0% 0%

Interpretation:
The above graph shows the evaluation of different activities of Omore’. The activities
includes: Order taking, Billing/Documentation, Credit period, Market Support, Profit
margin and claim adjustment. The retailers of Omore’ company evaluated all the
activities according to their satisfaction level with each of the activity.
 Question 12 "Gourmet"
120%
100%
80%
60%
40%
20%
0%
Billing/
Order Credit Market Profit Claim
Documenta
Taking Period Support Margin Adjustment
tion
Very Good 33% 0% 0% 100% 67% 100%
Good 67% 100% 100% 0% 33% 0%
Satisfactory 0% 0% 0% 0% 0% 0%
Poor 0% 0% 0% 0% 0% 0%
Very Poor 0% 0% 0% 0% 0% 0%

Interpretation:
The above graph shows the evaluation of different activities of Goumet. The
activities includes: Order taking, Billing/Documentation, Credit period, Market
Support, Profit margin and claim adjustment. The retailers of Gourmet evaluated all
the activities according to their satisfaction level with each of the activity.
 Question 12 "Others"
120%
100%
80%
60%
40%
20%
0%
Billing/
Order Credit Market Profit Claim
Documenta
Taking Period Support Margin Adjustment
tion
Very Good 100% 100% 100% 100% 100% 100%
Good 0% 0% 0% 0% 0% 0%
Satisfactory 0% 0% 0% 0% 0% 0%
Poor 0% 0% 0% 0% 0% 0%
Very Poor 0% 0% 0% 0% 0% 0%

Interpretation:
The above graph shows the evaluation of different activities of those companies who
produce their own ice-cream locally. The activities includes: Order taking,
Billing/Documentation, Credit period, Market Support, Profit margin and claim
adjustment. The retailers of these types of companies evaluated all the activities
according to their satisfaction level with each of the activity.
Data Analysis of
Distributors
Q 1):- Which of the following companies you are associated with?

Question 1
6

0
Wall's Yummy Hico Omore' Gourmet Others
Series 1 4 2 1 2 1 0

Interpretation:
From our survey of distributors, we have got responses from different distributors.
Our survey covered 4 distributors of Wall’s, 2 from Yummy, 1 from Hico, 2 from
Omore’ and 1 from Gourmet.
Q 2):- From how long you are associated with the company?

Question 2
6
5

4
3

2
1
0
Wall's Yummy Hico Omore' Gourmet Others
0-5 years 1 0 0 2 0 0
5-10 years 3 0 1 0 1 0
10-15 years 0 2 0 0 0 0
Above 15 years 0 0 0 0 0 0

Interpretation:
From the results of this question, we concluded that 1 distributor of Wall’s has an
association with the company from last 5 years and 3 distributors has an association
from last 10-15 years. Similarly, both distributors of Yummy has an association from
last 10-15 years. Hico distributor has an association from last 10 years. As Omore’ is
new company so the distributors have an association from last 1 year. The distributor
of Gourmet has an association from last 5-10 years.
Q 3):- Are you satisfied with quality of the products offered by the company?

Question 3
6

0
Wall's Yummy Hico Omore' Gourmet Others
Yes 4 2 1 2 1 0
No 0 0 0 0 0 0

Interpretation:
In this question we wanted to analyze the satisfaction level of the distributors about
the quality of the products offered by the companies. From the results we concluded
that all the distributors of Wall’s, Yummy, Hico, Omore’, Goumet are satisfied with
the quality of the products offered by their respective companies.
Q 4):- How many retailers purchase products from your distribution or warehouse?

Question 4
6
5
4
3
2
1
0
Wall's Yummy Hico Omore' Gourmet Others
0-1000 0 0 0 0 1 0
1000-1500 1 0 0 2 0 0
1500-2000 1 2 1 0 0 0
2000-3000 2 0 0 0 0 0
Above 3000 0 0 0 0 0 0

Interpretation:
This question is asked from the distributors in order to get the accurate information
about the retailers to whom they are supplying and delivering the products. The
result in the graph shows the number of retailers each distributor is currently having
with them.
Q 5):- What are the methods and ways opted for the distribution of the products to
your customers?

Ans:- In the questionnaire we asked this question as an open ended question from
the distributors. The distributors of all the companies provide their own
methods and ways distribution which they are currently using to distribute the
products to the retailers. From the results we concluded that the companies
use their efficient field forces or sales persons in order to get orders from the
retailers, and all of them use their own logistics support to distribute the
products to the retailers.

Q 6):- What are the different distribution flaws faced during the process of
distribution?

Ans:- When we asked this question from the distributors in order to know that what
type of flaws that they are facing in the process of distribution. From the
responses we concluded that the flaws which are faced by them include
shortage of human resources which sometimes delay the orders of the
customers, and this also reduces the recovery from the creditors. The other
major flaw they are facing is the replacing of the damaged products. Both of
these flaws are actually faced by distributors of Hico, and Yummy because
they have very less number of human resources available and they have a
less logistics support. On the other hand, Wall’s, Omore’ and Gourmet are
doing very well because they have a well organized and well balanced
distribution system.

Q 7):- How the orders of the products are processed by your distribution or
warehouse at the channel level?

Ans:- The distributors of Walls, Yummy and Omore’ receives an order from the
retailers and they forward their requests to the company and when they
receive the requested order from the company, they deliver it to the retailers.
While in case of Hico and Gourmet, they supply the products directly from the
company or factory so the retailers have to submit their requests and order
 directly to the company or factory and then the required products are
delivered to them.

Q 8):- What is the average order-cycle time given to the retailer?

Question 8
6

0
Wall's Yummy Hico Omore' Gourmet Others
Less than 5 Days 4 0 0 2 1 0
5-10 Days 0 2 0 0 0 0
More than 10 Days 0 0 1 0 0 0

Interpretation:

This graph shows the average order cycle time given to the retailers by the
distributors. From the results we concluded that the distributors of Wall’s, Omore’
and Gourmet complete the orders within 5 days, the distributors of Yummy take
maximum of 10 days to complete the orders and Hico take more than 10 days to
complete the orders of the retailers.
Q 9):- Do you have your own logistics for the distribution of the products?

Question 9
6

0
Wall's Yummy Hico Omore' Gourmet Others
Yes 4 2 1 2 1 0
No 0 0 0 0 0 0

Interpretation:

From the results we concluded that all of the ice-cream companies have their own
personal logistics support to deliver and supply products to the retailers.
Q 10:- Do you replace the expired and out-dated products?

Question 10
6

0
Wall's Yummy Hico Omore' Gourmet Others
Yes 4 2 1 2 1 0
No 0 0 0 0 0 0

Interpretation:

The result of this question shows that all the distributors of different companies
replace the out-dated, expired and damaged products.
Q 11:- Approximately how much of your order from your customers are impacted /
affected due to defective / expired products?

Question 11
6
5

4
3

2
1
0
Wall's Yummy Hico Omore' Gourmet Others
0-5% 4 2 1 2 1 0
5-10% 0 0 0 0 0 0
10-15% 0 0 0 0 0 0
15-20% 0 0 0 0 0 0

Interpretation:

According to the responses of the distributors, the orders of the retailers are only
affected 0-5 % due to the damaged, out-dated and expired products.
Q 12:- Do you face any type of complaints from retailers regarding your distribution
system?

Question 12
6

0
Wall's Yummy Hico Omore' Gourmet Others
Yes 4 2 1 2 1 0
No 0 0 0 0 0 0

Interpretation:

Yes, all the distributors agreed that they always receive complaints from their
retailers. When we asked about the type of complaints, almost all of the distributors
responded that the complaints are about the ―Time consume for the delivery of the
products, unavailability or shortage against the demand in order, product softness
and completeness of orders‖ because sometimes, Hico and Yummy are unable to
complete the orders in the given time period due to less logistics support and less
human resources.
Chapter

5
Conclusions
&
Recommendations
5.1. Conclusions

The conclusions drawn from the project study are as follows:

s of each ice-cream
company surveyed in order to make a comparative analysis of the distribution
system.
41% of the retailers and 70% of the distributors have a strong and long term
association i.e. (10-15 Years) with their respective companies. 59% of the
retailers and 30% of the distributors are associated with their companies for
last 5 years.
Approx 89% of the retailers and almost all the distributors are satisfied with
the quality of the products offered by their companies. Only 11% of the
retailers are not satisfied with the quality of the products offered by their
respective companies.

distributors are highly satisfied. Also, approx. 32% of the retailers are just
satisfied by the distribution services. 2% retailers are neutral because they are
neither satisfied nor dissatisfied with the distribution services. Only 1% of the
retailers are highly dissatisfied with the current distribution services provided
to them.
Almost all the distributors have efficient sales force and their visits to retailers
for order taking is also regular and adequate.
Companies are providing timely and accurate deliveries of products to the
retailer's but the sometimes the completeness of orders are not maintained
properly. 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 are some definite problems with the commission system and
commission paid to retailers by the company. Majority of retailers are satisfied
 by commission system but there are also some retailers who are highly
dissatisfied with the current commission systems of the company.
Proportion of defective, out-dated and expired product is less which shows
effectiveness of product handling, efficiency of delivery mechanism and the
quality and packaging standard's that the companies follow.
Most retailers preferred trade promotion is Cash Discount, followed by Tours
at 2nd, Gift Articles at 3rd, Bonus Pack's at 4th & Coupons 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 companies is average because sometimes
companies even Wall’s take more than two months to settle a claim from the
retailers.

5.2. Recommendations

We can sum the recommendations in brief as follows:

Communications should be improved by fulfilling the demand of product by

company. In the field, sales persons work independently and away from the
office. Good communication requires interaction between those preparing and
those receiving reports.
Company should make plans and impart training to the salesperson to
enhance their performance.
Aggressive marketing by market developer for increasing the sales volume.
Regular visit to distributors and retailers for better co-ordination.
Improve the market share by:
o Providing efficient & effective distribution.
o Catering to busy retailers at least 3 times a week.
Company should adhere to and implement the customers’ suggestions and
complaints about products, service policies, price changes, advertising, etc.
Increase in the number of sales vehicles.
Provide better schemes & services in order to gain market share.
Another Market research is required specifically on Brand v/s Competitions
v/s Commission paid to retailers.
Companies need to make an efficient and faster claim settlement system.
Annexure
 QUESTIONNAIRE

(For Retailers)

Name: _______________ Gender: Male Female

Age: __________Years Contact #:________________

Q 1):- Which of the following companies you are associated with?

Walls’ Yummy
Hico Omore’
Gourmet Others ____________

Q 2):- From how long you are associated with the company?

0–5 5 – 10 10 – 15 Above 15
Years Years Years Years
Walls’
Yummy
Hico
Omore’
Gourmet
Others

Q 3):- Are you satisfied with quality of the products offered by the company?
Yes No
Walls’
Yummy
Hico
Omore’
Gourmet
Others
Q 4):- Are you satisfied with the delivery / distribution services provided by the
company?

Highly Satisfied Neutral Dissatisfied Highly

Satisfied Dissatisfied
Walls’
Yummy
Hico
Omore’
Gourmet
Others

Q 5):- Are you satisfied with the performance of the sales person of the company?

Highly Satisfied Neutral Dissatisfied Highly

Satisfied Dissatisfied
Walls’
Yummy
Hico
Omore’
Gourmet
Others

Q 6):- What is your opinion regarding the sales person’s frequency of visits in a
month?

Criteria for visits in a month

Inadequate Adequate Regular
Walls’
Yummy
Hico
Omore’
Gourmet
Others
Q 7):- Evaluate the delivery system of company on following parameters.

Timeliness of Order Completeness of Order

1= In time, 2= Delay & 3= Very Delay 1= Completed, 2= Partially Completed 3= Not
Completed
Walls’
Yummy
Hico
Omore’
Gourmet
Others

Q 8):- Are you satisfied with the current commission system given by the company?

Highly Satisfied Neutral Dissatisfied Highly

Satisfied Dissatisfied
Walls’
Yummy
Hico
Omore’
Gourmet
Others

Q 9):- How often do you find that expired products are supplied to you?

Mostly Rarely Sometimes Never

Walls’
Yummy
Hico
Omore’
Gourmet
Others
Q 10):- What is the proportion of defective / expired products in total quantity
supplied to you?

Mostly Rarely Sometimes Never

Walls’
Yummy
Hico
Omore’
Gourmet
Others

Q 11):- Which are the trade promotion schemes that you like the most?

Gift articles Coupons/contest

Cash discounts Tours
Bonus Packs Others __________

Q 12):- Evaluate the company on following parameters / activities?

(1= Very Good, 2= Good, 3= Satisfactory, 4= Poor and 5= Very Poor)

Walls’ Yummy Hico Omore’ Gourmet Others

Order Taking
Billing / documentation
Credit Period
Market Support
Profit Margin
Claims Adjustment
 QUESTIONNAIRE
(For Distributors & Warehouses)

Name: _______________ Gender: Male Female

Age: __________Years Contact #:________________

Q 1):- Which of the following companies you are associated with?

Walls’ Yummy
Hico Omore’
Gourmet Others ____________

Q 2):- From how long you are associated with the company?

0 - 5 years 5 -10 years

10-15 years Above 15 years

Q 3):- Are you satisfied with the quality of the products offered by the company?

Yes No

Q 4):- How many retailers purchase products from your distribution or warehouse?

a. Retailers in numbers
Q 5):- What are the methods and ways opted for the distribution of the products to
your customers?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________

Q 6):- What are the different distribution flaws faced during the process of
distribution?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________

Q 7):- How the orders of the products are processed by your distribution or
warehouse at the channel level?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________

Q 8):- What is the average order-cycle time given to the retailer?

Less than 5 Days 5 to 10 Days More than 10 Days

Q 9):- Do you have your own logistics for the distribution of the products?

Yes No
Q 10):- Do you replace the expired and out-dated products?

Yes No

Q 11):- Approximately how much of your order from your customers are impacted /
affected due to defective / expired products?

0 - 5% 5 - 10%

10 – 15% 15 – 20%

Q 12):- Do you face any type of complaints from retailers regarding your distribution
system?

Yes No

If yes, what are the kinds of complaints and how do you manage them in a
given span of time?
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
______________________________________________________________
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http://www.articlesbase.com/marketing-articles/the-many-types-of-marketing-communication-
328925.html

"Elementary Principles of Economics" book, by Richard T. Ely and George Ray Wicker.

http://www.britannica.com/EBchecked/topic/365730/marketing

http://www.tutor2u.net/business/presentations/marketing/channelstrategy/default.html

http://tutor2u.net/business/marketing/distribution_direct.asp

http://tutor2u.net/business/marketing/distribution_intermediaries.asp

http://tutor2u.net/business/marketing/distribution_introduction.asp

http://www.tutor2u.net/business/presentations/marketing/directmarketing/default.html

www.unileverpakistan.com.pk