Ashrith Maiyas Project PDF

INTERNSHIP REPORT ON
“A STUDY ON EFFECTIVENESS OF DISTRIBUTION CHANNELS

AT MAIYAS BEVERAGES AND FOODS PVT LTD, BANGALORE”
BY
ASHRITH K P
1KG15MBA05
Submitted to
VISVESVARAYA TECHNOLOGICAL UNIVERSITY

“JnanaSangama”, Belgaum – 590018
In partial fulfilment of the requirements for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
Under the Guidance of
INTERNAL GUIDE EXTERNAL GUIDE

MR. PRADEEP, MR. KIRAN
ASST PROFESSOR, CHANNEL DEVELOPMENT MANAGER
DEPT, OF MBA, MAIYAS BEVERAGES AND FOODS
KSSEM, BANGALORE. PVT. LTD., BENGALURU
Department of MBA
K.S. School of Engineering and Management
No. 15, Mallasandra, off Kanakapura Road, Bangalore-560109
(2017)
DECLARATION
I, ASHRITH K P hereby declare that the Internship report entitled “A Study on Effectiveness
Of Distribution Channels” with reference to “Maiyas Beverages and Foods Pvt. Ltd.,
Bengaluru” prepared by me under the guidance of Prof. Pradeep, faculty of M.B.A Department,
K.S. School of Engineering and management and external assistance by Mr. Kiran, Channels
Development Manager at Maiyas Beverages and Foods Pvt. Ltd., Bengaluru.
I also declare that this Internship work is towards the partial fulfilment of the university regulations
for the award of degree of Master of Business Administration by Visvesvaraya Technological
University, Belgaum.
I have undergone a summer project for a period of Ten weeks. I further declare that this project is
based on the original study undertaken by me and has not been submitted for the award of any
degree/diploma from any other University / Institution.
Place: ASHRITH K P
Date: Signature of the student

ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the success of any task would be incomplete
without the mention of the people who made it possible, whose constant guidance and
encouragement crowned my effort with success.
I take immense pleasure in thanking Dr. S N Sridhara, Principal, K. S. School of

Engineering and Management, Bangalore, for creating the right kind of milieu.
I am very thankful to Prof. Manjunatha S, Head of Department, Department of MBA,

K.S. School of Engineering and Management, Bangalore, for him constant motivation
and encouragement.
I would like to thank my guide Prof. Pradeep, Assistant Professor, Department of

Master of Business Administration, K. S. School of Engineering and Management,
Bangalore, for identifying my area of work, reviewing it at every stage and for him patient
valuable hours serving as my project guide.
I extend my thanks to the entire faculty of the Department of Management Studies, K. S.

School of Engineering and Management, Bangalore, who have encouraged me throughout
this project.
I take the opportunity to express my gratitude and thanks to our computer lab staff and
library staff for providing me opportunity to utilize their resources for the completion of
the project.
I would like to record my sincere thanks especially to all staff of Maiyas Beverages and
Foods Pvt. Ltd., Bengaluru, for their great help.
Last but not the least, I thank my family and friends for their invaluable help and support
during the project work.
ASHRITH K P
1KG15MBA05
TABLE OF CONTENTS
CHAPTER NO. PARTICULARS PAGE NO.
1 INTRODUCTION 1-4
2 INDUSTRY AND COMPANY PROFILE 5 - 15
3 THEORETICAL BACKGROUND OF THE STUDY 16 - 22
4 DATA ANALYSIS AND INTERPRETATION 23 - 62
5 FINDINGS, SUGGESTIONS AND CONCLUSION 63 - 66
* BIBLIOGRAPHY *
* ANNEXURE *
LIST OF TABLES
TABLE PARTICULARS PAGE NO.

NO.
4.1 The distributor’s relationship with The Maiyas Brand. 23
4.2 The rate of brand Pull of the Maiyas towards distributor’s business. 25
4.3 The distributor’s recommendation of Maiyas company product to 27

customers.
4.4 The freshness of the food products which is supplied to distributors 29
in terms of expiry date.
4.5 The category of product has highest margin. 31
4.6 The main factor for Selling Maiyas products. 33
4.7 The distributor’s satisfaction level about the profit margins & 35
promotional schemes offered.
4.8 Offers Company gives discount on bulk orders. 37
4.9 The factor that influences the distribution of the company. 39
4.10 The frequently of the sales executives of the company visit to 41

wholesaler and retailer outlet.
4.11 The company executives convey schemes on time. 43
4.12 Effectiveness of Product and Promotion knowledge of Maiyas 45

salesman when he visit retailer and wholesaler store.
4.13 Time taken to delivering the product after make order. 47
4.14 Satisfaction level with the prompt delivery of the Maiyas Product. 49
4.15 Credit facilities provided for the distributors. 51
4.16 Rating to the damage policy. 53
4.17 Rating of distributors’ level of satisfaction with the after sales 55

services provided by company.
4.18 The main reason of conflict among outlet and company sales 57
people.
4.19 Rating of the service level of distributors. 59
4.20 The overall perception about the distribution activities of Maiyas 61

Company.
LIST OF CHARTS
CHART NO. PARTICULARS PAGE NO.

4.1 The distributor’s relationship with The Maiyas Brand. 24
4.2 The rate of brand Pull of the Maiyas towards distributor’s business. 26
4.3 The distributor’s recommendation of Maiyas company product to 28

customers.
4.4 The freshness of the food products which is supplied to distributors 30
in terms of expiry date.
4.5 The category of product has highest margin. 32
4.6 The main factor for Selling Maiyas products. 34
4.7 The distributor’s satisfaction level about the profit margins & 36
promotional schemes offered.
4.8 Offers Company gives discount on bulk orders. 38
4.9 The factor that influences the distribution of the company. 40
4.10 The frequently of the sales executives of the company visit to 42

wholesaler and retailer outlet.
4.11 The company executives convey schemes on time. 44
4.12 Effectiveness of Product and Promotion knowledge of Maiyas 46

salesman when he visit retailer and wholesaler store.
4.13 Time taken to delivering the product after make order. 48
4.14 Satisfaction level with the prompt delivery of the Maiyas Product. 50
4.15 Credit facilities provided for the distributors. 52
4.16 Rating to the damage policy. 54
4.17 Rating of distributors’ level of satisfaction with the after sales 56

services provided by company.
4.18 The main reason of conflict among outlet and company sales 58
people.
4.19 Rating of the service level of distributors. 60
4.20 The overall perception about the distribution activities of Maiyas 62

Company.
EXECUTIVE SUMMARY
The research paper brief about the effectiveness of distribution channels about Maiyas Beverages
and Foods Pvt. Ltd., Bengaluru, which involves the study of network of distribution channels,
impact factors of wholesalers and retailers and to analyses the level of satisfaction in the
intermediaries.
The data is collected through personal interviews and circulating 100 questionnaires to the
wholesalers and retailers and tabulated, analysed and interpreted by using statistical tools.
The following are the data find out during the study.
 Most of the dealers are favour to sell the Maiyas products.
 Dealers feel that products supplied by Maiyas are quality and hygienic.
 Majority of the dealers recommend Maiyas product to their customers.
 The damage policy given by the company to the dealers are good.
 Fewer less of dealers urge the company to deliver the order in time.
 Few dealers feel that timing is necessary to company sales force.
 Dealers expect more margins of few Maiyas products.
It also suggests better relationship between the company and intermediaries for mutual benefits in
all the aspects. The report is prepared designed for the need of academic purpose and considered
few parameters of the distribution channels.
CHAPTER – 1
INTRODUCTION
A Study On Effectiveness Of Distribution Channels At Maiyas Beverages And Foods
Pvt. Ltd., Bengaluru
1.1 TOPIC CHOSEN FOR STUDY

“A STUDY ON EFFECTIVENESS OF DISTRIBUTION CHANNELS AT MAIYAS
BEVERAGES AND FOODS PVT. LTD., BENGALURU”
1.2 THEORITICAL BACKGROUND OF THE RESEARCH

As in current scenario the importance of the channels intermediaries has influenced on
the firms performance and its distribution strategy, also they improved the level of
product knowledge, technical competence. Major of the companies do not involved in
sell their product or physical goods directly to the end users but also the increase the
overall performance & demand of the manufacturer’s product in the market. Also the
channels of intermediaries break the bulk, holds the inventory or stock in shelves, also
displays the product in display for advertising the product, they make customers to
make shopping easy and create shopping environment, to make demand for the
producer products.
The distribution channels will act as a bridge between the manufacturer and the
consumer and also help in moving the goods to the purchasers with a convenient means
of obtaining the product that he or she wishes to buy.
As we know that most of the companies adopt a long chain of channels members which
consists of both online and offline distribution channels. As now day’s changes in
technology has major impact on the functions of distribution channels. As due to
globalisation presently many companies are willing to attract more number of
customers by creating huge demand by good distribution strategies to get more profit
and sustain in the market for a longer period of time. Hence company offers many loyal
offers to the distributors who are purchasing in bulk and selling the goods as per the
demands in the market. The overall distribution efforts are going to influence the
performance of the company and achieve a competitive advantage relatively to the
competitors with their strategies.
1.3 STATEMENT OF PROBLEM

The study was conducted to know the various obstacles faced by the channels members
and their perception towards the company. It helps in understanding the impact of
distribution channels and also what type of functions the distribution channels is going
to perform which helps the company to increase the sales in the market. Also the study
DEPT. OF MBA, KSSEM, BANGALORE Page 1

helps in understanding the various channels strategies adopted by the firms that bridge
the gap or space between the manufacturer and customers.
1.4 NEED FOR STUDY

This study helps to gain the insights about the importance of the distribution channels
&the participation in physical movement of the company’s goods from origin to the
distributor’s destination. It also guides to understand the expectation from various
channels of distribution also the company must deliver outstanding satisfaction of their
channels members. Hence if the company channels member must try to maximize the
sales of the product as per the company & consumer preferences.
1.5 OBJECTIVES OF THE STUDY

 To study about existing distribution channels of the organization.
 To understand the various factors impact on distribution channels.
 To know the satisfaction level of intermediaries of distribution channels.
1.6 SCOPE OF THE STUDY

The main scope of this study is to conclude the impact of channels of distribution and
to identify the various methods to increase the sales volume & market share. This
study is useful in various areas, where distribution channels plays a key role for success
of the company. It guide to the company for further growth and enhancement of
distribution channels. The study will persuade the marketing officials and the dealers
to take sufficient measures to overcome the restraint of the distribution company for
further growth and enhancement of distribution channels. The study will persuade the
marketing officials and the dealers to take sufficient measures to overcome the restraint
of the distribution.
1.7 RESEARCH METHODOLOGY
1.7.1. Type of Research:

Exploratory research and Descriptive research was used in the project.
 Exploratory research means finding or exploring the insight in the subject.
 Descriptive research means explaining the features of the content.

1.7.2. Type of Sampling:

Convenience sampling method is followed. Convenience sampling technique which
selects those sampling units most conveniently available at a certain point in, or over
a period, of time.
 Major advantages of convenience sampling is that is quick, convenient and
economical; a major disadvantage is that the sample may not be representative
 Convenience sampling is best used for the purpose of exploratory research and
supplemented subsequently with probability sampling.
1.7.3. Sample size:

100 respondents are considered in this project. In 100 respondents, it include both
wholesalers and retailers.
1.7.4. Sources of data:

 Primary data: (questionnaire, observation, discussion).
 Secondary data: (website, brochure, company reports).
Primary data mean the data collected for the first time, whereas secondary data
mean the data that have already been collected and used earlier by somebody or
some agency.
1.7.5. Statistical tools:

Simple average method are used for data analysis and interpretation represented by
various tables, charts, diagrams and graph.
155 questioners are distributed to the wholesalers and retailers. Out of which 100 are
shortlisted for the analysis purpose. Remaining 55 are rejected due to errors in the
questionnaire, incompleteness of questionnaires and few not returned by the
respondents.
1.8 LITERATURE REVIEW

Researcher Tipuric (1993) has found that the intermediaries will not involve or they
are not into participating of their products from manufacturers to the consumers. He
indicates all must participate in the distribution channels to improve the consumption
value.

In the words of Rosli et al.,(2012); Mukhamad & Kiminami(2011); Pla-Barber

& Alegre, (2007) studies suggested that Innovation in distribution channels will
enhance firm performance & sales. The researcher is very much keen to establish a
strong relationship in the distribution channels between firm performance and channels
innovation.
As per Domschke and Schield (1994) research studies has founded that “Distribution
is a group of elements used to prodyuce products and reach to the customers. It includes
coordination of all those activities based on type, space, time and so on.
Burt (2000); Dawson (2000); Elg, (2003) in his paper stated that brand and value
added functions have relationship for the success of distribution channelss.
As per Sousa et al., 2008; Duenas-Caparas, 2006, studies concluded that the company
is controlled by various external factors & internal factors & also identify the factors
that affecting on the performance on companies distribution & exports
According to Mentzer, Flint, and Kent (1999) research found out that importance of
distribution channelss in the organizations success. Also he stated cycle of distribution
channels concepts.
1.9 LIMITATIONS OF THE STUDY

 The research is restricted to Bangalore retailers and wholesalers.
 Timeframe is the main obstacle for the study.
 Few of retail/distributor channels are not cooperative in revealing their privacy
data.
 Also sample size is too small to predict the overall study.
 Many times people (sample) do not have given the valuable information. Hence,
the overall finding & conclusions may not be fully correct.

CHAPTER – 2
INDUSTRY AND
COMPANY PROFILE
2.1 INDUSTRY PROFILE

Overview of food industries in India:
India acquired second place in food production across the globe. It includes FMCG
products confectionary such as dairy milk products, processed grains and meat
products. It has predicted that Indian food industry may reach 75 billion dollar in 2016
in export business.
It is one of the leading competitors next to china. And in few years it may occupy first
place in processed food industry.
India is in fifth rank in production, consumption and export of processed foods. The
food sector witnessed a makeable change in the consumption pattern due to modern
culture. Increasing in the standard of living and busy life of the consumers dependent
on processed foods for their daily consumption.
For example the relationship of expenditure staples such as Cereals, pulses from 45%
to 44%. In rural India where 32% of expenditure on food in urban India. The CII as
calculated the food processing sector may attract 33 billion dollar on next 10 years and
generate 90 lacks employment opportunities.
The government of India has announced various plans and schemes to encourage food
industry by providing financial assistant through financial institution at subsidiary rates.
Food processing helps in development of many agro0 based industries which have large
impact on agriculture horticulture and so on.
The Indian ministry of food processing has introduced various segments to easy the
food industries.
 Processing of grains,
 Harvesting of fishing
 Dairy
 Poultry
Reasons for growth of the food processing industry:

As India becoming more urbanization and both male and female are working for their
family’s for livelihoods results in less time to prepare traditional consumable foods at
home. Hence they started depending on baked foods and instant foods which boost the
processing industry to grow enormously in India. The food industries have given wide
options to select the food items according to taste and preference.

Barriers of the food industry:

 Poor quality of products
 Adulterant of raw materials
 Packaging cost
 Insufficient of skilled labourers
 Too many intermediaries, increases cost of the products
 Poor value chain management
 Lot of pits in distribution channels.
Major companies in the food industry:

 Maiyas Beverages & Foods Pvt Ltd.
 MTR Foods Ltd.
 Parle Ltd
 Haldiram’s
 Hindustan Lever Ltd.
 ITC-Agro
 Britannia
2.2 COMPANY PROFILE

Company Name : Maiyas Beverages and Foods Pvt. Ltd.
Proprietors : Sadananda Maiya & Sudharshan Maiya
Year of commencing business : April, 2012
Initial capital : Rs 80 crore
Registered office : Jayanagar 4th Block, Bangalore.
Manufacturing and Storage units : Harohalli, Kanakpura district, Karnataka
Telephone number : +91 80 43414400/98
Fax : +91 80 4341 4463
E-mail : contactus@maiyas.in
Website : www.maiyas.in

Mr. Yajna Narayana Maiya, a passionate entrepreneur started a MTR restaurant in

Bangalore by taking the inputs from other restaurants in Europe. His main mission was
to serve hygienic traditional foods to the customers.
In the year 2007, his son Sadanand Maiya sold his father MTR business to Norway-
based Orkla Corporation for total sum of 364 crore. And company made an agreement
with a Maiya that not to enter into ready to eat business for five years.
In the mean while Sadananda Maiya son Sudharshan Maiya entered into restaurant
business across Bangalore.
The agreement between Maiya and Orkla Corporation came to an end in 2012,
Sadanand Maiya entered into Instant mixes and Ready to eat products along with chain
of restaurants.
With the specialised skills of Dr.Sadananda Maiya took the company to the greater
height. He introduced new processes and technologies for the better productivity of the
company such as productions of Kodubale within fraction of minutes, scientific storage
of products with healthy standards.
In addition to sound infrastructure facilities, the company has wide network to the
market place and also it has setup various outlets in the name of “Maiyas Express”
across Bangalore city.
Maiyas restaurant specifically focused on hygiene and food safety policies to satisfy his
customers. The policies enlightens about company healthy practices, food habits and
hygienic procedures.
To extension of the business along with restaurant and ready to eat segment, Maiyas
introduced frozen foods to his customers.
2.2.1 MILESTONE OF THE COMPANY

 2008: Maiyas restaurant launches the Maiyas Brand
 2009: The Maiyas restaurant in the heart of Jayanagar, Bengaluru launched
 2011: Small manufacturing facilities set up for snacks and sweets
 2011: The Maiyas brand designed
 Feb 2012: Construction of manufacturing facility started
 May 2012: Mixes and Masalas launched
 Jun 2012: Pickles launched
 Sep 2012: Ready to eat launched

 Jan 2013: Frozen Foods launched

 Mar 2013: Beverages launched
 Mar 2013: Factory construction completed
2.2.2 OBJECTIVES OF THE COMPANY

 To provide a sole mix of interesting flavours& tastes that will make you hunger
for more.
 To become a premier branded company for the food products that satisfy the
customer regular needs.
 To provide the tasty foods to its customers.
2.2.3 VISION, MISSION AND VALUES OF THE COMPANY

Vision:
 To become a leading Food processing FMCG company in India.
Mission:
 To make ‘Maiyas’ a premier branded Food Company for a variety of authentic
and delicious Indian food products.
 Lead in Quality, Authenticity Product and Process, Convenience and Innovation
using Nano technology in the best possible way.
Value:
 Authenticity,
 Consistency,
 Passion,
 Innovation,
 Joy,
 Quality,
 Growth,
 Hard work,
 Enthusiasm.
 Integrity,
 Helping one another.

2.2.4 AREA OF OPERATION
Karnataka, Kerala, Andhra Pradesh and Tamil Nadu are Maiyas highest performing
states. They have launched their snacks in the north, north-east and the west. Maiyas
are geographically based in the south and these products, which are authentic south
Indian food, are the largest sellers in India. The North-East is a very large market for
Maiyas, especially for their beverages, sweets and snacks. The only problem is there is
no proper distribution channels in the region, so they follow the CNF model for
redistributing their products. In the other regions Maiyas have their own sales force and
offices in Tamil Nadu, Kerala, Kolkata, Andhra Pradesh, Guwahati, Delhi and Mumbai.
2.2.5 PRODUCTS/SERVICE PROFILE

INSTANT MIXES: SAVOURIES:
 Gulab Jamoon  Rice kodubale
 Badam Drink Mix  Khara boondhi
 Rava Idli  Masala boondhi
 Masala Idli  Chow chow
 Rava Dosa  Masala groundnut
 Dosa  Masala sticks
 Vada  Dhal bhujiya
 Upma  Aloo bhujiya
 Kharabath  Bhel bar
 Vermicelli payasam  Rice murukku
 Methi sticks
READY TO EAT:  Palak sticks
 Dal fry  Chakli
 Dal makhani  Butter chakli
 Channa masala  Masala cornflakes
 Rajma masala  Nylon sev
 Mixed vegetable curry  Kabuli channa
 Palak paneer  Chilli cashew
 Paneer butter masala  Masala cashew
 Vegetable pulao  Pepper cashew
 Bisibelebath  Salted cashew
 Pongal  Dry samosa
 Sambar rice  Kachori
 Rasam rice  Bhakarwadi
 Mudde saaru  Rava kodubale
 Kharabath  Butter murukku
 Tomoto upma  Tangy groundnut
 Kesaribath

SWEETS: MASALAS:
 Gulab jamun  Sambar
 Rasgulla  Xpress Rasam
 Mysore pak  Rasam
 Chocolate soan papdi  Puliyogare
 Coconut soan papdi  Bisibelebath
 Orange soan papdi  Vangibath
 Soan papdi  Potato sagu
 Garam masala
BEVERAGES: READY TO EAT BOWL:

 Badam drink  Curd rice
 Banana milk shake  Curd vada
 Cold filter coffee  Vada sambar
SPICES: THINGY:
 Chilli powder  Bombay mixture
 Coriander powder  Thingy chat pata
 Turmeric powder  Thingy masti masala
 Thingy tomoto
2.2.6 INFRASTRUCTURE FACILITY

 Green field project housing ultra-modern manufacturing facility on 4 acres (out of
the planned 20 acres).
 Can meet demand from both National and International markets.
 Highly automated 7 Manufacturing facilities with 65 tones production capacity with
investment of $35 million.
 Provided employment opportunity to over 475 people.
 In house laboratory to ensure high product quality – continuous monitoring of raw
materials, process and packaging.
 ISO 22000:2005 Food Safety System Certified facility from DNV on April 23 rd
2014
2.2.7 COMPETATORS
 MTR
 PARLE
 HALDIRAMS

2.2.8 MICKINSEY’S FRAME WORK
Strategy
Shared
Structure
valve
System Style
Skills Staff
System:
It shows the procedures, process of the company’s activities & how each and every
decision has been made in the organisation. Maiyas has to control the activities of each
and every employee & also a proper decision has been made. Maiyas has a sound
system like information system, operation system, finance system, HR system,
manufacturing system so on. If all the system of Maiyas performs the activities properly
then it leads the success of the organisation in the competitive world.
Strategy:
It is the plan developed by each department of the Maiyas Companies to gain the
competitive advantage to compete with competitors successfully in the market place.
This element of Mc Kinsey 7’s is very important which will influence on the other
elements. Maiyas has good strategies for different activities like marketing strategies,
promotional strategy, distribution strategy, production strategy & competitive strategy
to minimise the impact of competitors.

Structure:
It represents how the employees of different departments are arranged according to their
hierarchy level. It shows the clear picture regarding the business division arrangement
& whom they have to report or accountable. In Maiyas they have functional
organisational structure in which each department has own functional managers, who
is accountable for the work completion & later report to the higher authority.
Style:
In Maiyas they have autocratic leadership style where the top manager will take the
decision & control the behaviour & attitudes of their employees. Also few times
company follows democratic leadership style while taking the major decision regarding
the market, product expansion, diversification of product line & other marketing
activities.

Staff:
Staffs indicate the right person for the right job in the firm. Each departmental staff in
Maiyas is expert in performing the assigned work with proper training & development.
Staff in different departments has been motivated with different packages based upon
their performance & they are appraised according to the challenges they faced in the
marketplace.
Skills:
Maiyas Company always looks for the competitive skills in the employees to compete
in the market. During the time of recruitment & selection they will follow different
tests, which is essential for the company vacated post. They look for good conceptual
skills, technical skills & intrapersonal skills in the employees for right job.
Shared values:
This indicates the core values the company carries towards the employees & its
shareholders. It also evidenced regarding the organisational culture, attitude & work
ethics followed while running the organisation. It also includes how the employees
behave and value each other’s to lead the success of the company.
2.2.9 SWOT ANALYSIS
Internal External
Strength Opportunities
Weakness Threats

Strength of the Maiyas Company:

 Good technology adopted by the company,
 The channels of distribution which company following,
 Skilled employees working in the company,
 Image of the company.
Weakness of the company:

 Poor of promotional activities,
 Fewer number of outlets,
 Underproduction during peak production.
Opportunities for the company:

 Expansion to the other part of India,
 Enter into other category of the product,
 Increasing number of outlets.
Threats of the company:

 Main competition from Haldiram’s and MTR,
 New entrants to the market.
2.2.10 LEARNING EXPERIENCE

 From the research work it helped in equipping the corporate knowledge and
insights.
 This research work helped in exposing towards the industries knowledge and
concepts. These are the following points which I learned from the study.
 I gained the knowledge about the organization and its structure which helped in
understanding the roles and responsibilities of each hierarchy level.
 Even I understood about the working environment, working culture and services
cape.
 As per my title of the study, this helped in understanding the concept of
distribution and its strategies implemented by the Maiyas Company towards the
distribution of the product.

 This study also helps to understand the distribution structure based upon the
demand and size of the product.
 Also this study helped in understanding the need, importance and effect of
distribution channels on the sale of products.
 I equipped with the knowledge about the various channels variables or factors
which influences the company’s distribution channels.

CHAPTER – 3
THEORETICAL
BACKGROUND
OF THE STUDY
3.1 INTRODUCTION
Distribution channel is a process or route through which products travel from
manufacturer to the end user. The distribution channels is the mobile of goods between
place of manufacturer and the point of consumption through organization that performs
a variety of activities. The main participants in the distribution channels are producer,
intermediaries and consumers. A distribution channels is a direct transaction from
vendor to the consumer. Also Value is added by bringing products to ultimate
consumers and provides maximum satisfaction. Also they contributing towards the
growth of the country & producers economy, though many people fail to understand
noteworthy role of this sector, also the contribution made by middlemen by rending the
service to society cannot be disregarded. Many of the Organization have to build long
term relation not only with both the clients but key suppliers & middlemen during
production and distribution of goods/services. As distribution sectors changing it
function based on the changing environment to face the competition from other sectors,
span and productivity also affecting on the distribution channels. All this changes
creating advantage to customers by the availability of products and services more
conveniently and giving the number of advantages to pull towards the large number of
consumers.
3.2 TYPES OF MARKETING/DISTRIBUTION

1. Direct marketing:
It’s a shortest marketing in which goods are directly flow from producer to consumers.
It is also referred as Zero level channels because manufacturer sells directly to the
consumers.
There are many types of direct marketing:
 Retail outlet
 Door to door sales
 Sales by mail orders
 Telephonic selling,
 Selling through internet
 Others

2. Indirect marketing:
In this type indirect marketing goods are indirectly reach the consumers. In this goods
are moved with help of middlemen or intermediaries.
Different channels used in indirect marketing are:
 Producer Retailer Consumers
 Producer Wholesaler Retailer Consumers
 Producer Agent Wholesaler Retailer Consumers
 Producer Wholesaler Consumers
3.3 PURPOSE OF MARKETING CHANNELSS

 It will help in making the availability of the products in right time and in right
place.
 It identifies the path for both company and customers for goods and services
 It minimises the obstacles and increases smooth movement of the products from
manufacturer to customers.
 It increases the economic distribution of the products.
 Inventories can control easily through market channels.
 The cost can be reduced by direct marketing by effective utilisation of market
resources.
 It disseminates the information to the company and customers.
3.4 FUNCTIONS OF DISTRIBUTION CHANNELSS

 It increases distributional efficiency:
It will ease the sales process and narrow down the gap between consumers &
producers. If company uses distribution channels than they can easily reach the
customers & also company can reduce the efforts involved. As distribution
channels helps to target the customers to sell their products to increase the
efficiency of the firm.
 Distribution channels helps to assist in stock holding:

The intermediaries execute various functions like storing the products,
financing, bearing of risks and providing warehouse space facility.

 Information Provider:
Distributor is a vital person in assisting the producer and manufacturers with the
credible information about market and the customers. Also company can save
the research cost due to the additional information provided from the market
place by the middle men.
 Channels offer products in required assortments:

The channels members are expert in moving the required assortment of the
product to their targeted customers. Also their presence makes the consumer to
buy the required quantity of product at right time & right quantity. Also the
intermediaries break the bulk quantity product demand of the customer.
 Assist in product merchandising:

Actually the merchandising by channels members, which moves the product
from the manufacturer to the customer basket. Whenever a customer goes to a
retail/provisional store, he may be attracted by the display of new product,
which may dig up curious about that new product in point of display, and also
the customer may switch over to that new product.
 They assist in executing the price mechanism between the producer and the
customers:
The intermediaries help in accomplishment a price level which is satisfactory
for both to the producers as well to consumers.
 Matching Demand and Supply:

The main role is to gather the information of demand of product in market and
also supply the good on the required time to the customers. Also improper
matching of demand and supply will effect on the market & purchases with ease.
 Time and place utility

They helps consumers to access the good at proper time and also at proper
place when they need it.

 Customer Relationships
As customer trust more to distributors than the manufacturers. As due to their
interactivity with channels members will build their trust & confidence on the
purchase of the product. Also the distributors help in providing the product
information & sales support assistance.
 Assist in financing:
Distribution channels provides day to day expenditures in the form of the pre
payments for their products. As they give advance payment before the sale of
the product to the end users.
3.5 FACTORS EFFECTING IN SELECTION OF DISTRIBUTION

CHANNELS
 Size of Market:
The distribution channels will select the products with huge demand in the
market and also the number of the customer available. Hence the channels
members see the convenience and ease of the goods movement in market
based upon the size of market.
 Number of Buyers:
The middlemen will see the number of buyer is market then it increases to
take the services of middlemen for the distribution of the goods. On other
hand, if the buyers are less than the distribution is done by the manufacturer
directly.
 Experience and Expertise:

The success of the company depends on the considerable level of experience
the distributor is having with the product& managing the selling activities of
it. If the company sales executive or distributors has less expertise &
experience in selling or knowledge of the product than it impacts on the
company’s sales.

 Competitive Factors:
As there are many competitors existed in the market for consumer fast
moving goods. Hence the distribution channels selects the reputed company
with go and reputation in the market to distribute the good.
 Perishable and Non- Perishable Products:

Distributors will seek to buy the product based upon the life span durability
of the product. As their will be fluctuation in demands of the customers in
market.
 Geographical Concentration:
As distributors selects the product based upon the specific need of that place
and their needs in that small place. They analyse the geographical
concentration of customers and distribute the goods as per their demands.
 Product’s unit value:

As distributor select the product whose cost is best for their distribution. If
the unit value of product is high then they buy in small quantity &analyse the
sale of it before purchase of next assortment.
 Cost of Channels of Distribution.

Before selecting the channels of distribution, the cost involved of distribution
and the services provided by them too must be kept into consideration.
Therefore companies generally select the most economical channels.
 Location of Buyers:
The buyer’s location is also significant factor for selecting the type of
middlemen. When the buyers are scattered in large areas then there is major
use of wholesalers and retailers.

3.6 ADVANTAGES OF DISTRIBUTION CHANNELS

 Increase profit:
If company select direct distribution channels and minimise the length of
the channels the profit will increases.
 Easy promotion:
Distribution channels help to promote the products.
 Increases sales:
Sales of the company will increases if the company select best channels of
distribution.
 Covers maximum area:

It is difficult to company for cover entail market. Distribution channels
helps them to reach maximum area.
 Attract new customers:

If the company use different type of channels of distribution it help to
attract the new customers to the company.
 Generate high ROI:

If the company effectively use channels of distribution it help to get back
the return on investment.
 Easy to promote innovative products:

It is difficult to the company for promote new products. Distribution
channels help them to promote new products.
 It balances the demand and supply:

The demand and supply of the product will match by the distribution
channels.

 It balances the competition:

Now a day’s competition is very high. To reduce the competition
distribution channels helps them.
3.7 DISADVANTAGES OF DISTRIBUTION CHANNELS

 Time consuming:
Distribution channels not deliver product directly from manufacturing place to
consumers. It may take place to deliver from distribution channels.
 High expensive:
It is expensive because it passes from mediators.
 More number of distribution channels:

There is more number of distribution channels in the market. It is difficult to the
company to select the best.
 Lack of honesty:
The company cannot trust on the distribution channels members because they
are the third persons and losses of the company will not affect them.
 Possibility of breakage:
There is high possibility of breaking the products during the transportation.
 Communication gap:
There is a gap between the company and the customers if the company use
lengthy distribution channels.
 The company cannot understand customer taste:

The company will fail to understand the customers taste if they indirect
distribution or distribution through intermediaries.

CHAPTER – 4
DATA ANALYSIS
AND
INTERPRETATION
TABLE 4.1 SHOWS: The distributor’s relationship with The Maiyas Brand
PARTICULARS NO. OF RESPONDENTS PERCENTAGE (%)
Past 6 months 9 9%
6 - 12 months 13 13%
1 - 2 years 18 18%
2 - 3 years 23 23%
More than 3 year 37 37%
TOTAL 100 100
ANALYSIS:
Maximum number of 100 respondents, 9% of them are selling Maiyas products from
past 6 months, 13% of the are selling from 6 to 12 months, 18% of them are selling
from 1 to 2 years, 23% of them from 2 to 3 years and 37% of them selling Maiyas
product from more than 3 years.

CHART 4.1 SHOWS: The distributor’s relationship with The Maiyas Brand
The distributers assosiation with Maiyas Brand
37%
40%
23%
30% 18%
13%
20% 9%
10%
0%
Past 6 6 to 12 1 to 2 years 2 to 3 years More than
months months 3 year
INTERPRETATION:
From the above chart it can conclude that, most of the distributors selling Maiyas
products from more than 3 years. Hence the company must give attractive offers and
promotional schemes to the dealers to sell the Maiyas products and to maintain long
relationship.

TABLE 4.2 SHOWS: The rate of brand Pull of the Maiyas towards distributor’s
business
Excellent 11 11%
Very good 25 25%
Good 36 36%
Average 21 21%
Poor 7 7%
TOTAL 100 100
ANALYSIS:
In 100 respondents, 11%of them tells that the Brand pull of Maiyas towards their
business is excellent, 25% of them tells that very good, 36% of them tells that good,
21% of them tells that average and remaining 7% of them tells that brand pull of Maiyas
towards their business is poor.

CHART 4.2 SHOWS: The rate of Brand Pull of the Maiyas towards Distributor’s
business.
Brand pull Maiyas towards Distributor's business

40%
36%
35%
30%
25%
25%
21%
20%
15%
11%
10% 7%
5%
0%
Excellent Very good Good Average Poor
INTERPRETATION:
From the above chart it can be conclude that, most of the distributors tell that brand pull
of Maiyas towards their business is good. But companies have to reach excellent. So it
should try to make increase the brand pull by giving advertisements and offers to the
customers.

TABLE 4.3 SHOWS: The distributor’s recommendation of Maiyas company

product to customers.
Always 15 15%
Often 31 31%
Sometimes 27 27%
Rarely 19 19%
Never 8 8%
TOTAL 100 100
ANALYSIS:
From the above table it can understand that out of 100 respondents, 15% of distributors
are always recommend the Maiyas product to customers, 31% of them Often
recommend, 27% of them Sometimes recommend, 19% of them Rarely recommend
and 8% of them Never recommend the Maiyas product to the customers.

CHART 4.3 SHOWS: The distributor’s recommendation of Maiyas company

product to customers.
The distributor's recommendation of Maiyas Product to

customers
40% 31%
27%
30% 19%
15%
20%
8%
10%
0%
Always Often Sometimes Rarely Never
INTERPRETATION:
From the above chart I can interpret that, most of distributors often recommend the
Maiyas product to customers. It should be increase. So that company gives attractive
schemes and margins to distributors. Then only they recommend Maiyas product to
customers.

TABLE 4.4 SHOWS: The freshness of the food products which is supplied to
distributors in turn of expiry date.
Excellent 19 19%
Very good 34 34%
Good 31 31%
Average 13 13%
Poor 3 3%
TOTAL 100 100
ANALYSIS:
From the above table we can understand that out of 100 respondents, 19% of them tells
that the freshness of food products which supplied by the Maiyas company is excellent,
34% tells that very good, 31% tells that good, 13% of them tells that average and 3%
of them tells that the freshness of food product is poor.

CHART 4.4SHOWS: The freshness of the food products which is supplied to

distributors in the terms of expiry date.
The freshness of the food products which is supplied to

distributor’s in the terms of expiry date
34%
31%
35%
30%
19%
25%
20% 13%
15%
10% 3%
5%
0%
INTERPRETATION:
From the above chart I can conclude that most of the distributors tell that the freshness
of food products which is supplied by the Maiyas Company is very good. So that
company should try to analyse the demand & sales of the product in the market based
on this they must manufacture the fresh product.

TABLE 4.5 SHOWS: The category of product has highest margin.
Instant mix 23 23%
Sweets 17 17%
Snacks 21 21%
Masalas and Spices 37 37%
Ready to eat and Beverages 2 2%
TOTAL 100 100
ANALYSIS:
From the above table we can understand that out of 100 respondents, 23% of them tells
that Instant mixes has highest margin, 17% of them tells Sweets has more margin, 21%
of them tells that Snacks has high margin, 37% tells Masala and Spices and finally 2%
of them tells that Ready to Eat and Beverages has highest margin.

CHART 4.5 SHOWS: The category of product which has highest margin.
The category of product which has highest margin
37%
40%
23% 21%
30% 17%
20%
2%
10%
0%
Instant mix Sweets Snacks Masalas and Ready to eat
Spices and
Beverages
INTERPRETATION:
From the above chart I can interpret that most of the distributors said that Masalas and
Spices product has highest margin. So that company gives margins to the category of
product which have slow moving.

TABLE 4.6 SHOWS: The main factor for Selling Maiyas product.
Margin 24 24%
Promotional Schemes & 11 11%

offers
Consumer Demand 38 38%
Dealer relationship 21 21%
Credit Policy 6 6%
TOTAL 100 100
ANALYSIS:
From the above table we can understand that out of 100 respondents, 24% of
distributors sell Maiyas product because of Margin, 11% of them because of
Promotional schemes and offers given by Maiyas company, 38% of them because of
Consumers demand, 21% of them because of good Dealers relationship and 6% of
distributors only for the reason of Credit policy.

CHART 4.6 SHOWS: The main factor for Selling Maiyas product.
The main factor for Selling Maiyas product
38%
40%
24%
30% 21%
20% 11%
6%
10%
0%
Margin Promotional Consumer Dealer Credit
Schemes & Demand relationship Policy
offers
INTERPRETATION:
From the above chart I can conclude that, more number of distributors that is 38% of
them sells Maiyas product because of Consumers demand. So that Maiyas Company
should give good margins, maintain good dealer relationship, provide attractive
promotional schemes and offers and build good credit policy to increase the distributors
to sell the Maiyas product.

TABLE 4.7 SHOWS: The distributor’s satisfaction level about the profit margins
& promotional schemes offered.
Highly satisfied 15 15%
Satisfied 37 37%
Moderate 33 33%
Dissatisfied 12 12%
Highly dissatisfied 3 3%
TOTAL 100 100
ANALYSIS:
distributors are highly satisfied with the Profit margins and Promotional schemes
offered by the Maiyas Company, 37% of them are satisfied, 33% are moderately
satisfied, 12% of them are dissatisfied and 3% of them are highly dissatisfied.

CHART 4.7 SHOWS: The distributor’s satisfaction level about the profit
margins & promotional schemes offered.
The distributor’s satisfaction level about the profit margins &

promotional schemes offered
37%
33%
40%
30%
15%
12%
20%
3%
10%
0%
Highly Satisfied Moderate Dissatisfied Highly
satisfied dissatisfied
INTERPRETATION:
From the above chart I can interpret that, most of distributors that is most of them are
satisfied with the profit margin and promotional schemes offered by the Maiyas
Company. So that company must try to give more attractive promotional schemes and
offers to make distributors high satisfaction.

TABLE 4.8 SHOWS: Offers Company gives discount on bulk orders.
Yes 38 38%
No 21 21%
Sometimes 14 14%
Probably Yes 22 22%
Probably No 5 5%
TOTAL 100 100
ANALYSIS:
distributors said company give discount on bulk orders, 21% of them said company not
giving discount on bulk orders, 14% of them said sometimes company give, 22% of
them said probably yes and 5% of them said probably no.

CHART 4.8 SHOWS: Offers Company gives discount on bulk orders.
Offers Company gives discount on bulk orders
38%
40%
30% 21% 22%

14%
20%
5%
10%
0%
Yes No Sometimes Probably Probably
Yes No
INTERPRETATION:
From the above chart I can interpret that majority of distributors said that company give
discount on bulk orders. Company should maintain this and try to increase the
percentage by giving more discounts for increase the sales level.

TABLE 4.9 SHOWS: The factor that influences the distribution of the company.
PARTICULARS NO. OF PERCENTAGE (%)

RESPONDENTS
Attitude of salesperson 4 4%
After sales service issues 21 21%
Product availability & 34 34%

promotional policies
Unscheduled delivery 26 26%
Payment & credit policies 15 15%
TOTAL 100 100
ANALYSIS:
From the above table out of 100 respondents , 4% of them influenced by factor called
attitude of salesperson, 21% influenced by after sales services, 34% by product
availability & promotional policies, 26% of them by unscheduled delivery & 15% of
them by payment & credit policies.

CHART 4.9 SHOWS: The factor that influences the distribution of the company.
The factor that influences the distribution of the company
34%
40% 26%
21%
30% 15%
20% 4%
10%
0%
Attitude of After sales Product Unscheduled Payment &
salesperson service availability delivery credit
issues & policies
promotional
policies
INTERPRETATION:
From the chart it’s clear that product availability & promotional policies is the major
factor has influenced the distribution of product. Hence the company must focus on
other factors by rendering good post sales services, also make the product available
with good promotional policies for the distributors. Company must provide the credit
policies for the distributors, which influences their loyalty for their next purchases.

TABLE 4.10 SHOWS: The frequently of the sales executives of the company visit
to wholesaler and retailer outlet.
Twice a week 9 9%
Once a week 44 44%
Twice a month 18 18%
One’s a month 17 17%
More than a month 12 12%
TOTAL 100 100
ANALYSIS:
From the above table we can understand that out of 100 respondents, 9% of the
distributors says that sales executives of the Maiyas company visit the store twice a
week, 44% of them said once a week, 18% of them said twice a month, 17% of them
said one’s a month and 12% of them said they visit more than a month.

CHART 4.10 SHOWS: The frequently of the sales executives of the company
visit to wholesaler and retailer outlet.
The frequently of the sales executives of the company visit to

wholesaler and retailer outlet
44%
45%
40%
35%
30%
25% 18% 17%
20% 9% 12%
15%
10%
5%
0%
Twice a Once a Twice a Once a More than
week week month month a month
INTERPRETATION:
From the above table I can interpret that most of distributors said sales executives of
the Maiyas Company visit their store ones a week. To make better relation and
understand about the sales, executives of the company always try to visit frequently.

TABLE 4.11 SHOWS: The company executives convey schemes on time.
Always 29 29%
Often 20 20%
Sometimes 33 33%
Rarely 11 11%
Never 7 7%
TOTAL 100 100
ANALYSIS:
From the above table we can understand that out of 100 respondents, as per 29% of the
distributors executives of the company always convey the scheme on time, 20% said
often they convey schemes, 33% of them said sometimes, 11% said rarely and
remaining 7% said they never convey schemes on time.

CHART 4.11 SHOWS: The company executives convey schemes on time.
THE COMPANY EXECUTIVES CONVEY SCHEMES ON

TIME
33%
40% 29%
20%
30%
11%
20% 7%
10%
0%
Always Often Sometimes Rarely Never
INTERPRETATION:
From the above chart I can conclude that most of the distributors said company
executives sometimes convey the schemes on time. But executives always convey the
schemes on time then only company reach its sales target.

TABLE 4.12 SHOWS: Effectiveness of Product and Promotion knowledge of

Maiyas salesman when he visit retailer and wholesaler store.
Excellent 18 18%
Very good 20 20%
Good 44 44%
Average 17 17%
Poor 1 1%
TOTAL 100 100
ANALYSIS:
distributors said the product and promotional knowledge of salesman is excellent, 20%
of them said very good, as per 44% good, 17 of them said average and 1% of them said
poor.

CHART 4.12 SHOWS: Effectiveness of Product and Promotion knowledge of

Maiyas salesman when he visit retailer and wholesaler store.
Effectiveness of Product and Promotion knowledge of Maiyas

salesman when he visit retailer and wholesaler store
50% 44%
40%
30% 20%
18% 17%
20%
10% 1%
0%
INTERPRETATION:
From the above chart I can conclude that, most of the distributors said that product and
promotional knowledge of the distributors is good. But it should be excellent. So that
company should give proper and effective training and development program to the
salesmen who visit to the distributor’s outlet.

TABLE 4.13 SHOWS: Time taken to delivering the product after make order
Next day 49 49%
2-3 days 27 27%
Within a week 13 13%
More than a week 7 7%
Within a month 4 4%
TOTAL 100 100
ANALYSIS:
distributors said Maiyas delivery the product next day of ordering, 27% of them said 2
to 3 days of ordering, 13% them said within a week, 7% of them said company took
more than a week and remaining said company delivery within a week.

CHART 4.13 SHOWS: Time taken to delivering the product after make order.
TIME TAKEN TO DELIVERING THE PRODUCT AFTER

MAKE ORDER
49%
50%
40% 27%
30%
13%
20% 7%
4%
10%
0%
Next day 2-3 days Within a More than a Within a
week week month
INTERPRETATION:
From the above chart I can interpret that, most of distributors said Maiyas delivery the
product next day of ordering. Company should try to distribute the product as soon as
they get the order from the distributors to make them brand loyal & avoid brand
switching.

TABLE 4.14 SHOWS: Satisfaction level with the prompt delivery of the Maiyas
Product.
Satisfied 46 46%
Average 23 23%
Dissatisfied 9 9%
TOTAL 100 100
ANALYSIS:
distributors are highly satisfied with the prompt delivery of Maiyas product, 46% are
satisfied, 23 of them are satisfied averagely, 9% of them are Dissatisfied and remaining
4% of them are highly dissatisfied.

CHART 4.14 SHOWS: Satisfaction level with the prompt delivery of the Maiyas
Product.
Satisfaction level with the prompt delivery of the Maiyas Product
46%
50%
40%
23%
30% 18%
20% 9%
4%
10%
0%
Highly Satisfied Average Dissatisfied Highly
INTERPRETATION:
From the above table I can conclude that most of the distributors are satisfied with the
prompt delivery of the Maiyas. To highly satisfy the distributors, company should
delivery the product immediately after ordering.

TABLE 4.15 SHOWS: Credit facilities provided for the distributors.
1-7days 9 9%
10 days 14 14%
15days 27 27%
21days 18 18%
More than 30days 32 32%
TOTAL 100 100
ANALYSIS:
distributors are getting 1 to 7 days of credit facilities from the Maiyas company, 14%
of the distributors are getting 10 days of credit facility, 27% of them are getting 21 days
credit facility and 32% of them getting more than 30 days of credit facility.

CHART 4.15 SHOWS: Credit facilities provided for the distributors.
Credit facilities provided for the distributors
32%
35% 27%
30%
25% 18%
20% 14%
15% 9%
10%
5%
0%
1-7days 10 days 15days 21days More than
30days
INTERPRETATION:
From the above chart I can interpret that, most of the distributors are getting more than
30 days of credit facility. Company should give more days of credit facility then only
distributors will ready to sale the Maiyas products.

TABLE 4.16 SHOWS: Rating to the damage policy.
Completely satisfied 14 14%
Very satisfied 34 34%
Moderately satisfied 28 28%
Slightly satisfied 19 19%
Not at all satisfied 5 5%
TOTAL 100 100
ANALYSIS:
distributors are completely satisfied with the damage policy, 34% of them are very
satisfied, 28% are moderately satisfied, 19% them are slightly satisfied and remaining
5% are not at all satisfied.

CHART 4.16 SHOWS: Rating to the damage policy.
Rating to the damage policy
40% 34%
28%
30% 19%
14%
20%
5%
10%
0%
Completely Very Moderately Slightly Not at all
satisfied satisfied satisfied satisfied satisfied
INTERPRETATION:
From the above table I can conclude that, most of the distributors are very satisfied with
the damage policy of the Maiyas Company. Company should maintain liberal damage
policy to hold the existing distributors.

TABLE 4.17 SHOWS: Rating of distributors’ level of satisfaction with the after
sales services provided by company.
Satisfied 34 34%
Moderate 43 43%
Dissatisfied 12 12%
TOTAL 100 100
ANALYSIS:
From the table we can understand that out of 100 respondents, 9% of them are highly
sissified with the after sales services provided by the company, 34% of them are
satisfied, 43% of them are moderately satisfied, 12% of them are dissatisfied and 2%
of them are highly dissatisfied.

CHART 4.17 SHOWS: Rating of distributors’ level of satisfaction with the after
sales services provided by company
Rating of distributors’ level of satisfaction with the after sales

services provided by company
43%
50% 34%
40%
30%
9% 12%
20% 2%
10%
0%
Highly Satisfied Moderate Dissatisfied Highly
INTERPRETATION:
From the above chart I can conclude that, most of the distributors are moderately
satisfied with the after sales services provided by the company. So company must
highly satisfy the distributors with after sales services by providing various after sales
services.

TABLE 4.18 SHOWS: The main reason of conflict among outlet and company
sales people.
Lack of subject knowledge 8 8%
Delayed payments 17 17%
Settlement of trade scheme 39 39%
Handling of service issues 23 23%
Lack of communication 13 13%
TOTAL 100 100
ANALYSIS:
From the above table we can conclude that out of 100 respondents, 8% of them are said
lack of subject knowledge is a reason for conflict, 17% of them said Delayed payment,
39% of them said settlement and trade scheme, 23% of them said Handling of services
issues and 13% of them said lack of communication is the main reason for conflict
among outlet and company sales people.

CHART 4.18 SHOWS: The main reason of conflict among outlet and company
sales people.
The main reason of conflict among outlet and company sales people
39%
40% 17% 23%

30% 13%
8%
20%
10%
0%
INTERPRETATION:
From the above chart I can conclude that, most of the distributors said Settlement of
trade scheme is the main reason for conflict among the outlet and the company sales
people. So that company must try to settle the trade scheme immediately after the
trading.

TABLE 4.19 SHOWS: Rating of the service level of distributors.
Completely satisfied 5 5%
Very satisfied 29 29%
Moderately satisfied 46 46%
Slightly satisfied 17 17%
Not at all satisfied 3 3%
TOTAL 100 100
ANALYSIS:
From the above table we can understand that out of 100 respondents, 5% of distributors
are completely satisfied with the service provided by the company, 29% of them are
very satisfied, 46% of them are moderately satisfied, 17% of them are slightly satisfied
and 3% of them are not at all satisfied with the service level of the company.

CHART 4.19 SHOWS: Rating of the service level of distributors.
Rating of the service level of distributors
46%
60%
29%
40% 17%
5% 3%
20%
0%
Completely Very Moderately Slightly Not at all
satisfied satisfied satisfied satisfied satisfied
INTERPRETATION:
From the above chart I can interpret that, most of the distributors are moderately
satisfied with services of the Maiyas Company. So that company always tries to
completely satisfy the distributors with their services. They should provide the services
which are expected by the distributors.

TABLE 4.20 SHOWS: The overall perception about the distribution activities of
Maiyas Company.
Very good 16 16%
Good 43 43%
Average 27 27%
Bad 8 8%
Very bad 6 6%
TOTAL 100 100
ANALYSIS:
distributors perception towards the distribution activities of Maiyas company is very
good, as per 43% its good, from the view of 27% it is average, from the point of view
of 8% it is bad and remaining 6% of distributors its very bad.

CHART 4.20 SHOWS: The overall perception about the distribution activities of
Maiyas Company.
The overall perception about the distribution activities of Maiyas

Company
43%
60%
27%
40% 16%
8% 6%
20%
0%
Very good Good Average Bad Very bad
INTERPRETATION:
From the above chart I can conclude that, most of distributor’s perception towards the
distribution activities of Maiyas Company is good. Company should try to have good
images about the product in the market, which enhances the perception with the
distributors.

CHAPTER – 5
FINDINGS
SUGGESTIONS
AND
CONCLUSION
5.1 FINDINGS
 Most of the distributors as 37% have good relationship with Maiyas from more
than 3 years.
 Majority as 36% of the distributor’s rate that brand pull of the Maiyas towards
business is good.
 Majority as 31% of the distributor’s likes to recommend about Maiyas product
to customers.
 Most of the distributors as (19%+34%+31%) 84% feels that the company
deliveries the fresh food products in time, to sell it to the customers.
 37% of the distributers said Masalas and Spices has highest margin.
 Almost 38% of distributors said that demand is the factor for selling Maiyas
company product.
 Most of distributors as 37% are satisfied with the profit margins and
promotional schemes offered by the Maiyas company.
 Most of the distributors as 38% said company gives discount on the bulk orders.
 34% of the distributers are influenced by the product availability and
promotional policies to sell the Maiyas products.
 Most of the distributors as 44% said that the sales executives of the company
visit to wholesaler and retailer outlet once in a week.
 Most of distributors as 33% said that company executives always convey about
schemes on time.
 44% of the distributers said Maiyas salesman have good product and
promotional knowledge.
 Almost 49% of the distributors said that products are delivered on the next day
of the order made.
 Majority of the distributors as 46% are Satisfied with the prompt delivery of the
Maiyas Product.
 27% of the distributers are getting 15 days of the credit facilities.
 Majority as 34% of the distributors are well satisfied with the damage policy.
 Most of distributor’s as 43% satisfied with the after sales services provided by
company.

 Majority of them as 39% said that trade scheme & handling of service issues is
main reason of conflict among outlet and company sales people.
 46% of the distributers are moderately satisfied with the Maiyas services.
 43% of the distributers have good perception towards the distribution activities
of the Maiyas Company.

5.2 SUGGESTIONS
 Company must give attractive offers and promotional schemes to the dealers to
sell the Maiyas products and to maintain long relationship.
 Company should try to increase the brand pull by giving advertisements and
offers to the distributors in turn helps the distributers to increase the sales.
 Company must provide attractive schemes and margins to distributors, which
influences on the product demand and sale of the product to the customers.
 Although the company giving the discounts for bulk purchases for both fast
moving and slow moving products. If the products are slowly moving in the
market, either the bulk purchase discounts should be raised or increase the
distributors margin to promote their products.
 Company should maintain good dealer relationship & provide good credit
policy to the loyal distributors to sell the Maiyas product.
 Company should give slight discounts on bulk purchases from the distributors
to boost the sales.
 Company executives must always convey the schemes on time then only
company reach its sales target.
 Company should give effective training and development program to the
salesmen who visit to the distributor’s outlet.
 Company should try to distribute the product as soon as they get the order from
the distributors to make them brand loyal & avoid brand switching.
 Company should maintain liberal damage policy to hold the existing
distributors.
 Company must highly satisfy the distributors with after sales services by
providing various after sales services.
 Company should try to have good images about the product in the market, which
enhances the perception with the distributors.

5.3 CONCLUSION
From this study I can conclude that the Maiyas has high consumer demand for their
products. As there are many competitors in market, which has high impact on the sale
or demand of the product. Also there is high brand switching due to various flavours,
taste & availability in the market. Company must try to promote the product by various
types of advertisement & various promotional schemes to the distributors who are loyal
purchases. Also company must use various distribution channels with proper channels
strategy with its application. Finally the company must consider various variables,
which has high impact on the company reputation and distributors relationship.

BIBLIOGRAPHY
WEBSITES:
 www.maiyas.in
 www.wikipedia.org
 www.scholar.google.com
 www.slideshare.net
 www.businessdictionary.com
BOOKS:
 Marketing Management by Philip Kotler
 Marketing Management by S. P. Bansal
 Sales and Distribution Management by S. L. Gupta
ANNEXURE
Dear Sir/ Madam,
I ASHRITH K P studying MBA in K S School of engineering and management. As a

part of my course “a study on effectiveness of distribution channels at Maiyas
Beverages and Foods Pvt Ltd., Bengaluru” is being conducted. Hence you are
requested to spare few minutes in completing the questionnaire. This information
collected is kept confidential and is used for study purpose only.
Maiyas Beverages and Foods Private Limited

Bengaluru
Name of the Dealer:
Name of the Store:
Address of Store:
Contact detail:
Store type: Wholesaler
Super market
Bakery & Sweets
Departmental stores
Provision stores
General stores
Liquor & Spirits

1. How long have you been associated with Maiyas Brand?
1. Past 6 months
2. 6 to 12 months
3. 1 to 2 years
4. 2 to 3 years
5. More than 3 years
2. How do you rate the Brand Pull of the Maiyas towards your
business?
1. Excellent
2. Very good
3. Good
4. Average
5. Poor
3. Do you recommend Maiyas company product to customers?

1. Always
2. Often
3. Sometimes
4. Rarely
5. Never
4. How do you rate the freshness of the food products in the terms of
expiry date?
1. Excellent
2. Very good
3. Good
4. Average
5. Poor
5. Which category of product has highest margin?

1. Instant mix
2. Sweets
3. Snacks
4. Masalas and Spices
5. Ready to eat and Beverages
6. Which is the main factor for Selling Maiyas product?

1. Margin
2. Promotional Schemes & offers
3. Consumer Demand
4. Dealer relationship
5. Credit Policy.
7. Are you satisfied with the profit margins & promotional schemes
offered?
1. Highly satisfied
2. Satisfied
3. Moderate
4. Dissatisfied
5. Highly dissatisfied
8. Does the company offer discounts on bulk orders?

1. Yes
2. No
3. Sometimes
4. Probably Yes
5. Probably No
9. What is the factor that influences the distribution of the company?

1. Attitude of salesperson
2. After sales service issues
3. Product availability & promotional policies
4. Unscheduled delivery
5. Payment & credit policies
10. How frequently do the sales executives of the company visit to

your outlet?
1. Twice a week
2. Once a week
3. Twice a month
4. Once a month
5. More than a month
11. Do the company executives convey schemes on time?

1. Always
2. Often
3. Sometimes
4. Rarely
5. Never
12. How do you rate the effectiveness of Product and Promotion
knowledge of our salesman when he visit your store?
1. Excellent
2. Very good
3. Good
4. Average
5. Poor
13. How much time does it take for delivery Maiyas Product after
ordering?
1. Next day
2. 2-3 days
3. Within a week
4. More than a week
5. Within a month
14. Are you satisfied with the prompt delivery of the Maiyas
Product?
1. Highly satisfied
2. Satisfied
3. Average
4. Dissatisfied
15. How many days of credit facilities provided for the distributors?
1. 1-7days
2. 10 days
3. 15days
4. 21days
5. More than 30days
16. How do you rate the damage policy?

1. Completely satisfied
2. Very satisfied
3. Moderately satisfied
4. Slightly satisfied
5. Not at all satisfied
17. Rate your level of satisfaction with the after sales services
provided by company?
1. Highly satisfied
2. Satisfied
3. Moderate
4. Dissatisfied
18. Which is the main reason of conflict among outlet and company
sales people?
1. Lack of subject knowledge
2. Delayed payments
3. Settlement of trade scheme
4. Handling of service issues
5. Lack of communication
19. How do you rate the service level of distributors?

1. Completely satisfied
2. Very satisfied
3. Moderately satisfied
4. Slightly satisfied
5. Not at all satisfied
20. How do you rate the overall perception about the distribution
activities of Maiyas Company?
1. Very good
2. Good
3. Average
4. Bad
5. Very bad

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INTERNSHIP REPORT ON

“A STUDY ON EFFECTIVENESS OF DISTRIBUTION CHANNELS

VISVESVARAYA TECHNOLOGICAL UNIVERSITY

In partial fulfilment of the requirements for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

Under the Guidance of

INTERNAL GUIDE EXTERNAL GUIDE

Date: Signature of the student

I take immense pleasure in thanking Dr. S N Sridhara, Principal, K. S. School of

I am very thankful to Prof. Manjunatha S, Head of Department, Department of MBA,

I would like to thank my guide Prof. Pradeep, Assistant Professor, Department of

I extend my thanks to the entire faculty of the Department of Management Studies, K. S.

CHAPTER NO. PARTICULARS PAGE NO.

2 INDUSTRY AND COMPANY PROFILE 5 - 15

3 THEORETICAL BACKGROUND OF THE STUDY 16 - 22

4 DATA ANALYSIS AND INTERPRETATION 23 - 62

5 FINDINGS, SUGGESTIONS AND CONCLUSION 63 - 66

TABLE PARTICULARS PAGE NO.

4.3 The distributor’s recommendation of Maiyas company product to 27

4.6 The main factor for Selling Maiyas products. 33

4.9 The factor that influences the distribution of the company. 39

4.10 The frequently of the sales executives of the company visit to 41

4.12 Effectiveness of Product and Promotion knowledge of Maiyas 45

4.15 Credit facilities provided for the distributors. 51

4.16 Rating to the damage policy. 53

4.17 Rating of distributors’ level of satisfaction with the after sales 55

4.20 The overall perception about the distribution activities of Maiyas 61

CHART NO. PARTICULARS PAGE NO.

4.3 The distributor’s recommendation of Maiyas company product to 28

4.6 The main factor for Selling Maiyas products. 34

4.9 The factor that influences the distribution of the company. 40

4.10 The frequently of the sales executives of the company visit to 42

4.12 Effectiveness of Product and Promotion knowledge of Maiyas 46

4.15 Credit facilities provided for the distributors. 52

4.16 Rating to the damage policy. 54

4.17 Rating of distributors’ level of satisfaction with the after sales 56

4.20 The overall perception about the distribution activities of Maiyas 62

1.1 TOPIC CHOSEN FOR STUDY

1.2 THEORITICAL BACKGROUND OF THE RESEARCH

1.3 STATEMENT OF PROBLEM

DEPT. OF MBA, KSSEM, BANGALORE Page 1

1.4 NEED FOR STUDY

1.5 OBJECTIVES OF THE STUDY

1.6 SCOPE OF THE STUDY

1.7 RESEARCH METHODOLOGY

1.7.1. Type of Research:

DEPT. OF MBA, KSSEM, BANGALORE Page 2

1.7.2. Type of Sampling:

1.7.3. Sample size:

1.7.4. Sources of data:

1.7.5. Statistical tools:

1.8 LITERATURE REVIEW

DEPT. OF MBA, KSSEM, BANGALORE Page 3

In the words of Rosli et al.,(2012); Mukhamad & Kiminami(2011); Pla-Barber

1.9 LIMITATIONS OF THE STUDY

DEPT. OF MBA, KSSEM, BANGALORE Page 4

2.1 INDUSTRY PROFILE

Reasons for growth of the food processing industry:

DEPT. OF MBA, KSSEM, BANGALORE Page 5

Barriers of the food industry:

Major companies in the food industry:

2.2 COMPANY PROFILE

Proprietors : Sadananda Maiya & Sudharshan Maiya