IMS

A-8 B, Block A, Sector 62,

Noida 201303,(U.P)
Sales Distribution Strategy of Mother Dairy Safal.

Project Dissertation in v Trimester.

PGDM 2012-14

Submitted by:

Name: Awanish Tripathi (PGD12023)

Mother dairy Fruit And Vegetable Pvt Ltd.

(Safal),Delhi.
Project Mentor- Ms Surabhi Singh.
Submitted by-Awanish Tripathi .
(PGD12023).

Declaration
I, To understand the sales Distribution
Strategy of Mother Dairy Safal . Awanish
Tripathi, hereby declare that the project work
entitled is an authenticated work carried out by me
at MOTHER DAIRY under the guidance of
Ms.Surabhi Singh. for the partial fulfillment of the
award of the degree of POST GRADUATE DIPLOMA
IN MANAGEMENT and this work has not been
submitted for similar purpose anywhere else except
to INSTITUTE OF MANAGEMENT STUDIES,
NOIDA.

Awanish tripathi.
Pgd 12023

ACKNOWLEDGEMENT
It gives immense gratification to place on records my profound
gratitude andsincere appreciation to each and everyone who has helped me
in this endeavor.
I am thankful to my faculty guide of my institute ,for continued
guidance and valuable encouragement.
On a personal note I would like to thank all my batch mates for their
support. Any omission in this brief acknowledgement does not mean
lack of gratitude.
Submitted By
.

Awanish Tripathi.
Pgd 12023

Table Of Content

Sr.no.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

Particulars

Pg.no

Executive Summary
History
Mission
Vission
Sbus and management team
SWOT
Findings
Anyalsis
Suggestion&Conclusion
Recommendation

5
6-19
20
21
22-36
37-39
40-44
45-49
50-51
52

EXECUTIVE SUMMARY
India is a market of diversity-diverse with regard to income, price points, culture and
preferences. The Indian lifestyle has a traditional predilection for fresh fruits and vegetables
or those processed at home. With the changing lifestyle and improved spending habits the
processed food consumption in India is gaining momentum. Countrys GDP has accelerated
well past the 7 to 8 percent per annum growth rate.
Mother dairy fruit and vegetable unit was set up in the year 1988 by the National Dairy Development
board as a corporate body whose aim was to provide a direct link between farmers and consumers. It
later on forayed into processed food segment through the much known Safal peas. Safal products are
sold through its 375 retail outlets in the Delhi-NCR region. With an objective to increase the market
share and boost up sales Safal decided to enter the General trade. To enter into the General trade a
well established distribution network is of paramount importance, so the project involved creation of
a market channel for Safal products. The effectiveness of distribution coverage is very important.
Understanding of the distribution coverage is important for the manufacturer to plan and implement
effective distribution strategy .The methodology used in the project is primary research which
involved surveying the catchment area to find the list of probable distributors and thereby meeting
and convincing them about our model. Study of channel partners was also undertaken. The
methodology used is questionnaire method with open ended questions. An overall analysis of the
competitors was also taken up. The project gave a huge area to explore the working of a channel
involving the channel partners & findings of the project are basically divided into the findings of the
retailers, distributors and the competitors schemes and margins. The findings are discussed in detail
in the project. The conclusion which can be drawn from the project depicts the difficulties which a
company faces while developing a distribution network and the type of distributor to search for in
case of processed food distribution. The recommendations given involve various changes in the
policies of the company. After putting lots of efforts the results seems to bein favor but still three
months is not enough to practically understand everything and get the improvements done with the
results. The results will blossom in the future.

Introduction

1.1.

Mother Dairy Fruit and Vegetable Limited

Mother Dairy Fruit and Vegetable Limited (MDFVL), Delhi was set up in 1974
under the Operation Flood Programme. It is a wholly owned company of
National Dairy Development Board (NDDB). Mother Dairy markets and sells
dairy products under the Mother Dairy brand (like Liquid Milk, Dahi, Ice
creams, Cheese and Butter), Dhara range of edible oils and the Safal range of
fresh fruits & vegetables, frozen vegetables and fruit juices at a national level
through its sales and distribution networks for marketing food items. The
company markets an array of fresh and frozen fruit and vegetable products
under the brand name Safal through a chain of 350+ own Fruit and Vegetable
shops. Fresh produce from the producers is handled at the Companys modern
distribution facility in Delhi with an annual capacity of 200,000 metric tonne
(MT). An Individual Quick Freezing (IQF) facility with capacity of around 75 MT
per day is also operational in Delhi. A state-of-the-art fruit processing plant of
fruit handling capacity of 120 MT per day, a 100 percent export oriented unit,
setup in 1996 at Mumbai supplies quality products in the international market.
With increasing demand another state-of-the-art fruit processing plant has been
set up at Bangalore with fruit handling capacity of around 250 MT per day.
1.2.
F&V Unit
Fruit and vegetable (F&V) unit was set up in the year 1988 by NDDB, with an objective to
provide a direct link between fruit and vegetable growers and consumers. The unit has drawn
on NDDB's three decades of dairy sector strengths in designing its state of the art large and
6

ultramodern central distribution facility (CDF) to handle fresh and frozen fruit and vegetable.
Mother Dairy (Milk) was also working as a unit of NDDB. To compete in a better way, these
two units were merged to form an independent company, MDFVL. So, F&V unit is a strategic
business unit of MDFVL.
1.3.
Amul Pattern with Deviations
The unit was set up on Amul pattern but with certain deviations. The organization did not
facilitate the forming of village level cooperatives of producers. Instead, farmer associations
were formed. This was done to avoid the investments and huge fixed cost because of these
establishments. This decision was taken to be able to deal with the highly fluctuating market
of fruits and vegetables and its retail.
1.4.
Physical Infrastructure and Certifications
F&V unit complex is situated on 22 acres of land. It comprises a prefabricated building
consisting of cold store chambers with different sets of temperature and humidity conditions
suitable for storage of various fruit and vegetables. It has controlled atmosphere chambers
and ripening rooms, deep freeze rooms, preparation hall, processing hall, dispatch hall,
reception, dispatch facilities etc. Material handling is done in specially designed plastic crates
with the help of forklifts. The unit also initiates and supports production enhancement
activities at farm, improved pre and post harvest practices, efficient logistics from farm to the
retail outlets, scientific quality assurance and education of grower, support staff and
consumer. Production of quality product begins at the farm level where the grower, in cooperation with unit officials, work to cultivate and supply quality produce to the unit
(http://www.safalindia.com/companyprofile.htm).
With the utmost care and dedication, the growers and unit officials try to apply their
professional knowledge and skills to give consumers the best return for their money.
Standards are defined for each fruit and vegetable so as to link price to quality. Procurement
specialists and trained field staff help the farmers in crop management and protection. Efforts
are made to introduce new seed varieties and scientific methods of agriculture to increase the
yield and improve the quality of produce.
Specially designed modern retail outlets have been set up in and around Delhi to market fresh
and frozen fruit and vegetables, directly to the consumers. Each shop caters to large number

of customers, with a capacity to sell 1,600 kilos of fruit and vegetables a day. The shops are
equipped with electronic machines that automatically weigh the produce and print item wise
bills.
F& V unit is International Organisation for Standardization (ISO) 9002: 2008 & Hazard
Analysis and Critical Control Points (HACCP) certified organization.
2. OBJECTIVES
The objectives of the study were:
To understand the structural and contextual dimensions of the organization.
To understand the implications of organizational power, politics and culture on the
organization .
To analyze the Human Resource (HR) practices and processes.
3. SCOPE AND LIMITATIONS
The study was conducted at the Central Distribution Facility of the fruit and vegetable (F&V)
unit of the organization. Major limitation of the study was inaccessibility of data and information
regarding financial statements and HR policies over a period of time. Availability of time was
another constraint.
4. METHODOLOGY
Structured and unstructured interviews were used to understand the functioning of the
organisation and its HR practices and processes. Informal discussions and unobtrusive
observations were done to understand organisational power, politics, culture and conflict.
Literature review and frameworks, PEST analysis and Mc Kinseys 7S framework were used to
analyse the environment of the organisation. Porters and Miles and Snows frameworks were
used to analyse the strategies followed by the organisation. Mintzberg model was also used to
understand the structure of the organization. Sample surveys of employees and casual workers
were conducted to understand their perception about various aspects of the organization.
4.1.
Sampling Plan
The casual workers are employed in the operations department only for sorting, grading,
loading and unloading. Since all of them were in one department, random sampling was done

in the operations department only. The sampling plan used for the survey of employees was
on the basis of strength of employees in each level of all 9 departments in the organization.
Sample was drawn from all the three levels in the organization. The population to sample
ratio was 10:1. One employee was surveyed in case of the strength of number of employees in
a particular level of a department being less than 10. The table below details the strength of
the employees and the sample drawn from each level of a department.

Table 1
Sampling Plan: Employees
Department

Managers

Middle
Level

Helpers

Total

Operations

72

141

218

15

18

30

12

15

39

11

Procurement

Marketing

HR and
Administration

Estate

Quality

Sample

24
60
6
54
6
8
2
18
4
10
3

Materials & Purchase

Finance and
Accounts

Marketing
Information Systems

Total

15
3
11
2
8
2
402

52

5. FUNCTIONING OF THE F&V UNIT: PROCESS FLOW

5.1.
Procurement
Farmers associations are established in vegetables growing areas and wherever they are not,
the farmers are briefed about the unit and the assistance is provided to the farmers in crop
production, post harvest management, packing material, transportation and marketing of their
produce. Once the farmers start supplying their produce to the unit and show their willingness
to organize themselves, the farmers are guided by the units field staff to form an association.
Supply arrangements are made available to the farmers associations which have been
established with or without units guidance.
Procurement of fresh vegetables is done on the basis of marketing demand, processing
requirement and quality requirements of the unit. Procurement of fresh vegetables is done
from different places in the country such as Delhi, Himachal Pradesh, Maharashtra,
Rajasthan, Uttar Pradesh, Punjab, Madhya Pradesh, Karnataka, Gujarat and Uttranchal.
Sourcing of fresh vegetables is also done from individual farmers, societies, local traders,
government organizations and whole sale Mandies of Delhi or other places.

5.2.

Supply Chain

10

Figure 1
Supply Chain of Mother Dairy F&V Unit

11

Produc
FreshtsF&V

Farmers Associations

Collec

12

Proc

The produce procured is transported to the CDF or processing unit from the collection
centers. The fresh fruits and vegetables are sent directly to the Central Distribution Facility
from the collection centers. In case of F&V required for products, they are transported to
processing units. The products are transported from the processing units to CDF. The
products, frozen F&V and fresh F&V are sent to Safal outlets from CDF. These outlets then
sell the fresh fruits and vegetables as well as the products to consumers.

5.3.
Process Flow at the Unit
On arrival at CDF, the produce is weighed and checked for the quality by operations or
quality assurance departments. Non conforming produce is resorted or is sent to wholesale
mandi or back to areas if resorting is not feasible. Receipt is given by Operations department
for the produce received by the Unit. All the processes of sorting and grading, weighing,
quality checking, preparation of batches and loading according the routes are all recorded in
the system. Item wise availability status report, booth wise and route wise distribution report
sales order consolidation etc., are generated.
Figure 2
Process Flow at the CDF

13

Arrival dock

Resorted/r
eturned

Weigh
ing

Quality chec

Sales order
Booth
consolidation
wise & route
Item
report
wise
wise
distribution
availability
report
status repo

Batches
Dispatch
Loading
dock in designated vehicles
Dispatch ha
prepared
6. ENVIRONMENT ANALYSIS
Environment consists of all the forces that surround the organisation. These forces have the
potential to affect the way in which the organisation operates and its access to scarce resources.
The environment of any organisation consists of task environment or specific environment and
general environment. The specific environment directly affects the working of the organisation
and its control over scarce resources. On the other hand, the general environment affects the
organisation indirectly and it shapes the specific environment. The specific environment consists
of the consumers, competitors, suppliers and the government etc. The general environment
consists of macroeconomic forces, technological forces, political forces and socio-cultural forces.
6.1.
Specific Environment of Mother Dairy F&V Unit
The specific environment of the organisation can be analysed as under-:
6.1.1. Consumers
The consumers are the most important constituents of specific environment of any
organisation. In case of Mother Dairy F&V Unit, there have been several changes in this
regard. The three aspects that have undergone change are-:

14

a) Number of Customers
The number of customers who purchase from the organised retail stores has increased
significantly in the recent years. Earlier people used to purchase vegetables from the street
vendor. Now they want to purchase them from stores like Safal, Reliance Fresh,
Spencers, Food Bazaar etc. So the number of consumers who purchase from the
organised retail stores has gone up. But at the same time the competition to attract these
customers has also gone up due to increased number of players in organised retail.
b) Type of Customers
The customers who purchase from Safal booths have also changed over a period of time.
When Safal was started, it was the only store where fruits and vegetables were sold. It
was unique of its kind. At that time, it was considered status symbol to purchase
vegetables from the Safal booths. Later on, other stores like Reliance Fresh, Spencers,
Food Bazaar etc. also came up. Safal somehow failed to maintain its image of premium
store and others successfully established their brands as premium ones. Naturally the
upper class and higher middle class consumers has shifted to other stores. Now the
consumers of Safal mainly include the middle class consumers. So the type of consumers
has also changed for Safal in the years that have passed.
c) Consumer Tastes and Preferences
Consumer tastes and preferences have also changed over the years. Earlier consumers
wanted only seasonal varieties of fruits and vegetables. Now there is a growing demand
for hybrid varieties that are available throughout the year. Similarly there is a growing
demand for exotic varieties of fruits also. The consumers also want an attractive store
where they can find a good ambience to shop. So the consumer tastes and preferences
have also changed.
6.1.2. Farmers
Mother Dairy has established farmers associations in 17 states from whom it procures
fruits and vegetables. When the organisation was established the farmers supplied their
produce happily to Mother Dairy F&V Unit as it offered better prices to them when
compared to what they used to get in the mandis. Now the situation has changed a bit.
Now there are other players also who are ready to take the produce from them. They are
even offering prices to them that are higher than those offered by Mother Dairy F&V
Unit. This has affected the loyalty of the farmers to a certain extent. Now the organisation
15

has to compete vigorously with other players to ensure constant and uninterrupted supply.
There are other factors also which has affected the loyalty of the farmers towards Mother
Dairy F&V Unit. The payment terms of organisation are also a cause of worry. In Mother
Dairy F&V Unit, payment is generally made 15 days after the procurement is made. In
case of other players the payment is made immediately when the procurement is done.
These factors have led to shifting allegiance of the farmers to a certain extent.
6.1.3. Concessionaires
Concessionaires are also important constituents of the specific environment of Mother
Dairy F&V Unit. They are ex-defence personnel. They have to submit an initial deposit of
Rs. 150000. All the other expenses are borne by Mother Dairy F&V Unit. They get a
commission of 10% on all the sales. The concessionaires are generally facing two
problems. First, the organisation forces them at times to put certain products on their
shelves as a part of their push strategy. Secondly, the expired products are not taken back
by the company. So the concessionaires have to bear the burden of expired products. A
recent issue that came up with regards to concessionaires was that the management asked
the concessionaires to give discounts on certain products. They were told that they will be
reimbursed the amount that they discount later on. The concessionaires followed the
directions and they gave discounts. But when they asked for reimbursement, there were
several issues raised by Mother Dairy F&V Unit. As a result, the concessionaires had to
wait for almost a month to get the reimbursement. Such kind of practices has led to
dissatisfaction among the concessionaires. In the year 2008-09, 12 concessionaires have
left the organisation. So a need is being felt in the organisation to manage its relations
with the concessionaires effectively.
6.1.4. Competitors
The competitors of Mother Dairy F&V Unit have increased in number over the years.
The major competitors are Reliance Fresh, Subhiksha, Food Bazaar, Spencers and Big
Apple. Out of these Reliance Fresh has emerged as the major competitor of Mother Dairy
F&V Unit both in back-end and front-end operations. It has been procuring fruits and
vegetables from the same farmers from whom Mother Dairy F&V Unit procures. It has
got maximum number of retail outlets in the country as of now. Its attractive payment

16

term has helped it to attract the farmers towards it. Others are also competing vigorously
to carve a niche for themselves in fruits and vegetables retailing.
6.2.
General Environment
In order to analyse the general environment the PEST analysis framework can be used. PEST
stands for political, economic, social and technological influences. These influences are interrelated.

6.2.1. Political Environment

The government has allowed 51% foreign direct investment for foreign players in retail
business. It has made the entry of various foreign companies into retail business possible.
Mother Dairy F&V Unit has entered into a contract with Wal-Mart for its back-end
operations.
The political environment also includes various legislations like Consumer Protection Act,
1986 which provide protection to the consumers. This has led to the shift from Caveat
Emptor (Let the buyer beware) to Caveat Venditor (Let the seller beware). This has led
to increased caution on the part of the companies. Mother Dairy F&V Unit is no exception
to it. There are more stringent norms of quality being followed here to ensure good quality
products to the consumers.
So far as the procurement operations of Mother Dairy F&V Unit are concerned, they are
governed by APMC Acts. There are certain regulations which are related to environmental
safety, employee health protection and competition protection. The main legislation
governing competition in India is the Competition Act, 2002 which repealed the
Monopolies and Restrictive Trade Practices (MRTP) Act, 1969 and provided for a modern
framework of competition protection. Then there are labour laws which protect the
interests of the workers in Mother Dairy F&V Unit.
6.2.2. Economic Environment
Economic environment in terms of income distribution and levels of savings and credit
availability plays an important role in determining the demand of consumer goods. India
at present is a trillion-dollar market out of which a fifth of demand is for rice, potatoes
and such other agricultural goods. The findings from latest study by McKinsey Global

17

Institute (MGI) reveal that India with its current growth rate will undergo a major
transformation. Its income levels will almost triple and its average real household income
will grow from 113,744 Indian rupees in 2008-09 to 318,896 Indian rupees by 2025. It
says that by 2025 there will be 400 millions Indian city dwellers that belong to the middle
class with annual income in the range 2-10 lakhs per annum. This is of critical importance
knowing that this will increase the demand for fruits, vegetables and other agricultural
goods.
6.2.3. Social Environment
Earlier the Indian households preferred to buy fruits and vegetables from the street
vendor. But now there is a sea change in the mindset. People visit retail outlets of
organised sector to purchase fruits and vegetables. This has positively affected the sales of
the organisation. So the social environment is also changing favourably for Mother Dairy
F&V Unit.
6.2.4. Technological Environment
The farmers are still using primitive techniques of production due to lack of capital and
consolidated land. This results in low productivity.
When Mother Dairy F&V Unit was established, there was high level of mechanisation at
the central distribution facility. There were imported machines for sorting, grading and
other tasks. However these have gradually become out of use. The employees say that
these machines were not suitable for Indian crops and there was a lot of wastage due to
them. The processing plant of Mother Dairy F&V Unit is equipped with state of the art
technology. The freezing and ripening chambers are also equipped with modern
technology. The quality control techniques used at Mother Dairy F&V Unit use latest
technology. So, modern technology is very much in use at Mother Dairy F&V Unit.
6.3.
Environmental Uncertainty
Environmental uncertainty for an organisation is dependent on two parameters:
a) Simple-Complex Dimension
b) Stable-Unstable Dimension
The simple-complex dimension refers to the heterogeneity, or the number and dissimilarity of
external elements relevant to an organisation. The stable-unstable dimension refers to whether
the elements in the external environment are dynamic or not.

18

Robert Duncan has given the following framework for determining uncertainty for an
organisation:

Stable
Environment

Unstable
Environment

Simple + Stable= Low

Complex + Stable= Moderate

Uncertainty
Small number of similar

Uncertainty
Large number of dissimilar

elements.

elements.

Elements change very slowly.

Simple + Unstable= High-

Elements change very slowly.

Complex + Unstable= High

Moderate Uncertainty
Small number of similar

Uncertainty
Large number of dissimilar

elements.

elements.

Frequently changing elements.

Simple Environment

Frequently changing elements.

Complex Environment

With respect to Mother Dairy F&V Unit, the environment can be said to be complex and
unstable. So it has got high uncertainty. The environment of Mother Dairy F&V Unit is
complex because there are many external elements. There are many competitors. Then there
are concessionaires and consumers. There are various government agencies also which are
concerned with retailing and food business.
The environment is stable because there are no frequent changes in the elements of external
environment. Demand for fruits and vegetables changes seasonally and there are rapid price
fluctuations. The produce depends on a number of factors including rainfall which remains
highly unpredictable. There are new players coming into this business constantly.
So the environment of Mother Dairy F&V Unit is both complex and unstable and thus, it has
high uncertainty.
6.4.
Boundary Spanning
Boundary spanning roles link an organisation with key elements in the external environment.
It is primarily concerned with the exchange of information with the external environment.
Business intelligence is a part of boundary spanning which involves gathering and analysing
internal and external data. In Mother Dairy F&V Unit, the boundary spanning roles are
performed by Sales Department and MIS (Marketing Information Systems) department. Sales
department acts as a link between the organisation and, the concessionaires and the

19

consumers. The MIS department collects information about demand and prices, and analyzes
them. This helps in keeping the prices and supply of the organisation in tune with the market
conditions.
7. MCKINSEYS 7S FRAMEWORK
The 7S framework describes the seven interdependent elements that constitute the organisation
and are vital for its success. These seven elements have been categorised into hard and soft
elements. Hard elements are those that are easier to define and identify. The three hard elements
are strategy, structure and systems. Soft elements are those that are less tangible in nature. The
four soft elements are- shared values, skills, style and staff.
7.1.
Shared Values
The shared values of the organisation are best described in the mission and vision statement
of the organisation-:
7.1.1. Mission Statement
To provide guidance to farmers and producers on new crops and varieties, post harvest
practices and technological advancements, to improve the yield and quality of their
produce. Also, shall provide them remunerative prices for their produce, which shall
improve their lifestyle/standard of living.
To create a congenial work environment for the employees by imparting training,
recognizing innovation and creativity, encouraging involvement and sense of
belonging and providing better opportunities for their advancement in life and service
career.
To effectively harness all available resources to maintain green, eco friendly
environment.

7.1.2. Vision Statement

To provide quality produce, products and services to the entire satisfaction of
customers
To improve quality of life of farmers and producers by providing guidance for:
Improving yield and quality of produce
Identifying superior varieties
Adopting better agricultural practices
Expanding market

20

 Ensuring remunerative price for their produce.

7.2.
Structure
The organisation structure refers to the grouping of the individuals into departments and
teams and the grouping of these departments and teams to form the organisation. The various
aspects pertaining to the structure of Mother Dairy F&V Unit are as under-:
7.2.1. Functional Structure
The structure of Mother Dairy F&V Unit is a functional one. The activities and the
departments are grouped together by common function from the bottom to the top of the
organisation. There is a Board of Directors of Mother Dairy Fruit and Vegetable Private
Limited which remains on the top. Then there is the Managing Director of MDFVL in the
hierarchy. He is followed by the two General Managers.

Figure 3
Organisational Structure of Mother Dairy F&V Unit

21

Board of
Directors

M.D.

CEO

GM SCMV

Dept. Head
Procurement

Dept. Head
Information &
Technology

Dept. Head
MIS & Planning

GM Marketing

Dept. Head
Maintenance &
Estate

Dept. Head HR
&Administratio
n

Dept. Head
Finanace &
Accounts

Dept. Head
Operations

DGM Marketing

There are nine departments which have been organised on functional basis. All the human
resource related functions are done by the HR and Administration department. Similarly,
maintenance and estate department takes care of housekeeping and maintenance.
However, there is an anomaly in the structure of Mother Dairy F&V Unit. The Marketing
Information Systems department has been put under the GM, Supply Chain and
Manufacturing Verticals (SCMV) while in a functional structure ideally it should have
been under GM (Marketing).
7.2.2. Mintzberg Model:
When the organization is analyzed using the Mintzberg model, the basic parts that
constitute the organization are operating core, strategic apex, middle line and
technostructure. The operating core includes the sales executive, procurement executive,
helpers and assistants in Operations department. The core functions of the organization
being procurement, processing and sales and distribution of F&V, these employees
perform the core functions of the organization. The strategic apex comprises the General
Manager (Marketing), General Manager (SCMV) and the Chief Executive Officer of the
organization. The middle line comprises those managers who sit in a direct line of formal
authority between the people of strategic apex and of the operating core. The coordinators
constitute the middle line in the organization. The technostructure consists of those

22

analysts, out of the formal line structure, who apply analytical techniques to the design
and maintenance of the structure and to the adaptation of the organization to its
environment. In this organization, work schedulers in HR department, long range planners
in Marketing and MIS department and the executives of Quality Assurance department
constitute the technostructure. The support staff includes those groups that provide
indirect support to the rest of the organization. In this organization, the house keeping
staff, the security staff and administrative staff are included in the support staff.
Routine operating tasks are performed in the organization. All the processes are expected
to be carried out in accordance with the procedure laid down. The tasks are carried out by
workers who are highly specialized having carried out the work for over a long period of
time. All activities are updated in the enterprise resource planning (ERP) system and
hence they are standardized. Details of the activities starting from the arrival of produce at
arrival dock till they are sent out from the dispatch dock after being processed in the
processing hall are updated in the ERP system. The administrative structure is very
elaborate with three levels in unionized cadre along with three more sub levels within
each level. There is a sharp distinction between line and staff as the organization depends
above all on standardization of work processes for coordination. Even the administrative
and processing buildings are situated separately. The technostructure, which houses many
analysts who do the standardizing, emerged as the key part of the structure. Consequently,
these analysts have developed some informal power, with the result that the organization
can be described as having limited horizontal decentralization. The analysts gained their
power largely at the expense of the operators, whose work they formalize to a high
degree, and of the first line managers, who would otherwise supervise the operators
directly. But the emphasis on standardization extends well above the operating core, and
with it follows the analysts influence. Rules and regulations permeate the entire structure.
Formal communication is favoured at all levels. Decision making tends to follow the
formal chain of authority. Only at the strategic apex are the different functional
responsibilities brought together and hence all the major decisions are made at the
strategic apex level. The information accessed through ERP system is restricted on the
basis of the functional division. No department is able to access the information of other
department. The technical systems which help the information flow across all departments
23

are restricted. Hence, the centralization of the authority and control is prevalent in the
organization. These features and characteristics of the organization make it a machine
bureaucracy. The machine bureaucracy is typically associated with the environment that is
both simple and stable. Safal was the only player in the retailing of F&V. With new
players coming up in the F&V retail industry, the environment is changing to be more
complex and dynamic. The organization is responding to the changes in the environment
with bringing in modern technical systems. But the typical machine bureaucracy
identified with regulating the technical systems. The access of ERP system in the
organization being regulated on the basis of the functional basis is a clear example.

24

C & F Agent
Carrying and Forwarding agent act on behalf of the company. Hiring a C & Fagent is like setting
up a company depot which is handled by the agent. Goods aretransported to agents warehouse
and from there they are dispatched to all thedistributors. All the billing is done by the agent but
on behalf of the company.
C&F agent has the responsibility of all the logistics from the manufacturer till it these agents do
not contact the distributors. This is done by the company. All thepayments are collected by
distributors and claimed settled by the C&F agent.
C&F agents are given all expenses incurred by them. For example, staff salary, transportation
claims etc. C&F agents charge service charges from the company in lieu of providing all these
services. It is either on percentage margin of the business done or as fixed service charges.
Mostly these service charges are fixed in nature, for example, Rs25000/month.
The claims of expenses can be settled in two ways by the agent. Firstly, these claimed can be
deposited directly to the company without getting the agent in between and secondly, by claiming
it through the agent. The claims are thus deposited with the agent and they send the same to the
company for clearance.

25

Super Stockiest

Super stockiest are the middlemen who buy in large amount from the manufacturer and then sell
them to distributors. These distributors are hired by the company only and not by the super
stockiest, generally. Super stockiest is responsible to market the product to these distributors and
all the expenses related to the job are paid by the stockiest only. Super stockiest cover all its
expenses and profit in the margin of the product. Thats why they generally have high margins
then distributors and retailers.
Billing and other paper work is done on the name of super stockiest and not on companys name.
The biggest benefit of super stockiest is to those companies do not have to deal with the
distributor.
Super stockiest can lead to undercutting in the market very easily by maintaining their expanses
to the minimum which can be harmful for the company.

26

Role of Distributor

The role of distributors is not only to make the Safal products available to the customers but they
will perform several other roles and functions as well for Safal unit. Some of those roles are
identified us and are summarized below:

Promotion
Promotion/marketing of the products in their territory is one of the most important functions of
the distributor. Many distributors use sales incentive programs to increase the customer traffic.
Mostly these sales incentive programs are provided by the company itself.

Financing
Distributor finance manufacturers operations by providing the necessary workingcapital in the
form of advance payments for goods. These payments are done evenbefore the products are
bought, consumed and paid for by the ultimate consumer.

Title
Distributor takes the title of the goods and trades them. This helps in diffusing therisks between
the manufacturer and distributor. This also enables distributor to bein physical possession of the
goods, which in turn enable them to meetcustomerdemand at the very moment it arises.

27

Price Stability
Price stability can be maintained by distributor in order to absorb an increase in the price of the
products and continue to charge the customer the same old price. This is because of the intermiddlemen competition. This can be done by the distributor by keeping their overheads low.

Information
Distributors play a major role in providing information about the market for our products.
Developments like changes in customer demography, media habits, entry of new competitors or a
new brand and changes in customer preferences are some of the information that we need from
our distributors. Since distributors are present in the market-place and they are closer to the
customer, they can provide these informations at no additional cost.
The definition of a channel partner thus can be viewed from five different perspectives or
marketing flows presented as below:

Manufacturer (Safal)

Customers

Transporters and
company

Retailers

Fig. VI - Physical Flow of goods

28

Manufacturer (Safal)

Transporters

Manufacture
(Safal)

Distributors

Retailers

Customers

Fig. VII Title Flow of Goods.

Manufacture
(Safal)

Distributors

Retailers

Fig. VII Title Flow of Goods.

Manufacture
(Safal)

Customers

Distributors

Retailers

Fig. VII Title Flow of Goods.

29

Customers

WORKING OF A DISTRIBUTOR
The distribution of products is important for a company. Correct channel strategies are widely
used by the company. The working of distributors is essential to understand. These are as
follows:-

Transportation of product
The products are manufactured at the Safal plant and are transported to the Distributors by
Safal.
The goods are unloaded at distributors warehouse and after that it is the sole
responsibility of the distributor to take care of the product.

Selling of the product to the retailers

Distributor hires salesman who will market the good in the area. The number of salesman
will depend on the area that needed to be covered and the nature of good. Generally, the
company will specify the number of salesman that they think will be needed in the market
but a distributor can appoint on their own judgment and experience.
Each salesman is given a part of the total area allocated to the distributor and their duty is
to cater only to that particular area.Their job involves them to find all the prospective
retailers that can keep our product and to convince them to buy from us. Their main job is
to increase the sales of the good in the market.
Each salesman will take orders from their areas and then deliver those goods as soon as
possible or when required by the retailer. They need to maintain the continuity of the
service in the market and to see that all retailers maintain our stock.
It is important to maintain healthy relationship with the retailer by salesman, so that they
will not shift easily to their competitors.
The movement of goods from the distributor to retailer is responsibility of the distributor.
Distributor has the job of collecting any information that they can related to the goods and
the company, from retailers and customers.
Any customer complain, expiry of goods, damaged goods etc. hasto be taken care by the
distributor and collect the same from retailer. They can make a claim of the same with the
company.
It is also the duty of distributor to pass all the primary or secondaryschemes to the retailer.
Working of distributor as studied by us is as explained above but as a distributor is an
independent member of the market and the working may vary according to distributors.
30

Terms and Responsibilities of Distributors

Commercial policy of manufacturer often lays down the terms and conditions and responsibility
for the distributors. Generally these include price policy, mode or terms of payments, returns
policy, territorial rights etc. These are explained as below:

Price Policy
This sets out the price at which the distributor will get the product from Safal and the discount
schedule. It also mentions the price at which distributor may sell the product. Generally, the
company is required by law to stipulate the maximum retail price (MRP). The exact price at
which the product is available to the consumer may change but it cannot exceed the maximum
retail price stipulated by Safal. The actual price may vary from MRP due to trade discounts,
scheme offered by Safal/Distributor/Retailer etc.

Payment Terms
These include the stipulations related to mode and terms of payment. For example, Safal accept
payment only in form of Cheque or Demand Draft, No cash is accepted. It also related to the
credit policy of the company.

31

Return policy
This indicates the warranty that Safal extends to the Distributor. Some firms offer spot
replacement and other takes time to settle them. Return policy should be laid down to avoid
conflicts between the two parties.

Territorial rights
Territorial jurisdiction of each of the distributors should be spelled out to avoid any territory
jumping. This will also be helpful in distributors evaluation. Safal has the policy of indicating
the area which each distributor will market and if any distributor jumps in other distributors area
then Safal can take actions against that distributor which may result in termination of contract.

Mutual Services and Responsibilities

These services and responsibilities can be promotional inputs, training, quality control, and other
administrative support. These services may strengthen the bond between distributor and the
manufacturer.

All these terms and conditions will be later discussed under the head Terms and Conditions for
Safal Agency.

32

UNDERCUTTING
Undercutting is the process which occurs in the market place to push the product into the market
place.

Process
The distributor gives the product to the wholesaler at a discounted rate known as cash discount.
Wholesalers buy in bulk from the distributors and this discount is further transferred to the
retailers. For example, lets say that the distributor will get the product with a margin of 5% and
retailer will get a margin of 15%. But retailers buys in small lots and distributor may keep stock
worth in lakhs at a point of time. Wholesaler approach distributors and offer to buy in bulk for
extra margins. A distributor may pass 17% margin and keep only 3% for themselves. It is done to
clear stock faster. Wholesaler then passes the same goods at 16% margin to the retailers which
are 1% more than they can get from a distributor.
This is done to increase the sales of product and push it into the market as the product is
purchased in bulk and sold in the market.

Disadvantages
It may be disadvantageous for the distributor as he has to give some of themargins. But still he
earns on the bulk trade and saves the transportation cost to deliver same goods to retailers and the
go down cost.
It may also be disadvantageous for the company as retailers in some areas may sell the products
at low prices than other areas and that would hamper the brand image of the company,
Sometimes companies deliberately take this step and create undercutting in market to push their
product in the market. As retailer will earn more on the same MRP, they are interested to sell as
much as they can. This can be done by giving the distributors high targets, so that in order to
achieve that target they will sell on lower margins to wholesalers or any other way. Company like
Fair and Lovely have earned a huge market share by this process at a point of time.

33

PRODUCT PORTFOLIO OF SAFAL

Theproductportfoliosof Safal include severity of products. Abrief understanding about these
products is essential to market the products.

JUICES-Under the fruit drinks the first segmentation is between real fruitdrinks and
synthetic drinks.
The real fruit drinks are based on natural fruit pulp or juice.
The synthetic drinks are synthetic products with fruit or other flavors.
Broad taste preferences could be another way to define the market. The marketis at
present also segmented on the basis of fruit pulp content. For the purposeof
segmentation, on the basis of fruit pulp content. For the purpose ofsegmentation, on
the basis of fruit pulp content, market can be segmented as:

1 Fruit juice with pulp content more than 80%, Brands falling in this category are Onjus,
Real, Tropicana (100% juice) etc.
Our juices boast of a quality manufacturing procedure and packaging. Variants of juices are listed
in the table. The juices are made from fresh fruits. Our juices are made by reconstituting the juice
concentrate which amounts for 85% pulp, Sugar, Natural identical colors and flavors are added.
Our juices do not contain preservatives. The preservative action is because of ascorbic acid. It is
also ideal for the foodservice establishments as it requires minimal storage space, them to cater
for large functions.

34

2. Fruit Nectar- with pulp content from 40% to 80%. Life and Xs come in this category. Our
nectars are made by reconstitutuion.They contain nature identical colors and flavoring
substances.
3. RTS - These are ready to serve beverages which have a pulp content which is lower than that
of juices and nectars. Its consumption is aimed at consuming at a particular point of time. It
contains about 10% pulp. This Ready-To-Drink variant offers an option to retail operations
catering to customers looking for healthy, thirst quenching single serve options. The welldesigned packaging ensures that it stands out whether it be displayed in normal shelves or walkin chillers. Our RTS has about 13% pulp of the fruit it is made of in addition with the sugar,
acidity regulators and preservatives.
4.KETCHUP - Condiment consisting of a thick, smooth-textured, spicy sauce usually made from
tomatoes. The ketchups can be divided on the basis of thick and thin sauces. A recent launch of
tomato ketchup has taken place with improved packaging and sensory characteristics.
5.JAMS - Fruit jams are fruits, or vegetables, that have been prepared and canned for long term
storage. The preparation of fruit preserves traditionally involves the use of pectin as a gelling
agent, although sugar or honey may be
6.SQUASH - These belong to the synthetic beverage category. These are available in different
flavors and contain a high amount of sugar.
7. PUREES-These are majorly aimed for in home consumption and contain tomatoes.

8.PICKLES- They are available in wide flavors. Our pickles are made from fresh quality fruits
and vegetables with condiments, oil and salt.

35

Catalogue of Safal products:S.No.

Material no.

1
2
3

72000314
72000313
72000312

72000801

72000811

72000812

72000813

72000814

72000815

10

72000816

11
12

72000315
72000319

13

72000320

14

72000316

15

72000317

16

72000330

17

72000332

18

72000331

19

72000321

20

72000322

21

72000335

Product Category

Material descriptionMRP

Nectars

RTS

Juices

Squash

Tomato
Ketchup
Tomato Puree

36

MANGO NECTAR 200ML

MANGO NECTAR 1LTR
GUAVA NECTAR 1LTR

(inRs)
15
70
70

GUAVA NECTAR 200ML

15

SAFAL MANGO DRINK

200ML
SAFAL LITCHI DRINK
200ML
SAFAL PINEAPPLE DRINK
200ML
SAFAL GUAVA DRINK
200ML
SAFAL PLUM DRINK
200ML
SAFAL PEACH DRINK
200ML
SAFAL GRAPE JUICE 1LTR
SAFAL ORANGE JUICE
1LTR
SAFAL ORANGE JUICE
200ML
SAFAL MIX FRUIT JUICE
1LTR
SAFAL MIX FRUIT JUICE
200ML
SAFAL LEMON SQUASH
700ML
SAFAL ORANGE SQUASH
700ML
SAFAL LITCHI SQUASH
700ML
SAFAL TOMATO KETCHUP
IKG
SAFAL TOMATO KETCHUP
500GM
SAFAL TOMATO PUREE

12
12
12
12
12
12
70
77
15
77
15
70
70
75
89
50
14

22
23

72000306
72000311

24

72000307

25

72000309

26

72000310

27

72000328

28

72000327

29

72000325

30

72000326

200.GM
SAFAL APPLE JAM 500GM
SAFAL PINEAPPLE JAM
500GM
SAFAL MIX FRUIT JAM
200GM
SAFAL MIX FRUIT JAM
500GM
SAFAL MIX FRUIT JAM
IKG
SAFAL RED CHILLI
PICKLE 400GM
SAFAL MIX PICKLE
400GM
SAFAL LIME PICKLE
400GM
SAFAL MANGO PICKLE
400GM

Jams

Pickles

SWOT ANALYSIS of SAFAL

37

60
60
30
65
100
55
45
45
45

Strengths:

High quality product made by latest technologies and aseptically packaged.

Products are available in wide varieties of flavors and are HACCP and ISO certified.
Committed, capable and ambitious management,
Flexibility in our operations so we can focus our efforts on the tasks.

Weakness:
Our distribution set up initially will be weak when compared to the others in the market.
We will not be able to price our product lower than the others in the market as we are
producing a quality product.

Opportunity:
The market is in a growing stage and there are huge chances of growth in the sector.
More and more people in the urban areas are getting health conscious and are making fruit
juice a part of their daily diet. Hence the market is growing.
The government policies are expected and are showing trends to encourage the food
processing industry.

Threat:
Our competitors are wide such as Dabur& Real and they could harm us by getting
aggressive in their promotional activities.
The competitors have strong brand images in the market because of their other businesses
and their presence in the market from an early stage.
Indian market has characteristic of serving a wide variety people which is a challenge for
all the marketers.

38

Terms and condition for Safal Agency

Margin on Safal products for the distributor will be 5% on markup
The actual margin on Safal products is 5.25% but as VAT is deducted from this margin the
absolute margin for the distributor comes out to be 5%
Margin on Safal products for the retailer will be 15%on markup
Rs. 10,000 will be reimbursed to the distributor as the
salary of 2 sales persons per month
Rs. 20,000 will be given to the distributor to purchase shelf space from the retailers
Shelf space means that the retailer has to place our products at the shelf on eye level, so
that customer can easily view our products as soon as they come to the shop. In short, our
products should be easily visible to the customer.
Rs. 25,000 has to be deposited as security, if thedistributor is ready to take the agency of
Safal
This security is refundable but it does not carry any interest. The security will be refunded
when the distributor leaves our agency or when we leave the agent.
Minimum Rs. 1,00,000 has to be invested as working capital by the distributor
Against this amount stock will be delivered to the distributor, after that distributor can
order any amount of stock as per the requirement of the distributor.

Safal gives replacement under the following circumstances:1.

Expired stock with the distributor.

2.

Damaged goods.

3.

All consumer complains (attached with the copy of consumer complain)

Safal will not replace good if Rat cuts are found.

All these terms and conditions are discussed with the distributor
in preliminary meetings

39

FINDINGS

The survey of retail outlets in the zone 5 that is Anand Vihar yields data about 51
potential distributors. These distributors are working for various FMCG
companies. These 37 companies have been broadly classified as follows:
1.

Dairy Products

2.

Snacks

3.

Beverages

4.

Ready to Eat

5.

Confectionary & Cereal Products

6.

Ketchups, Jams & Pickles

7.

Other

In a particular category following companies have been included. These are as follows

1. Dairy Products
Distributor working for companies like Amul and Paras Ghee were interested inour
proposal. Mother Dairy distributors did not show any interest.

2. Snacks
Distributors catering to snacks companies were interested in our proposal likeHaldirams
Frito lays,Bikano and AC II. Piknik and Nissin did not show any interest.

3. Beverages
In the beverage category there are strong competitors of Safal so they were not interested
in our proposal. Only Bisleri and Tata tea had a word with us.
40

4. Ready to Eat
Distributors catering to ready to eat products were not interested.

5. Confectionary & cereal products

This category includes a wide range of products ranging from biscuits to bread,rice to
breakfast cereal. This category showed a wide interest in our products, Ahaa,Jagat Rice,
Dawat Rice, Britannia, Perfetti, Bonn and Rajdhani were interested in our proposal.

6. Ketchup, jams & Pickles

This category caters to companies who are our competitors, hence no company
wasinterested.

7. Others
Companies interested under this category are Sundrop Oil and Everest Masala.
Inference- The inference which can be drawn is that the distributors working for the FMCG
sector are not equally interested in the distribution of processed foods.A variation lies between
distributors working for different companies, distributors catering to Confectionary and cereal
products are the most interested as they get to cater to a different product line completely with no
competitors,moreover the companies working in this category are not big companies so they are
interested as this would give them an opportunity to expand their business.
Distributors catering to the snacks category are the next interested.This maybe because of
no competition in the category.
The percentage catering to others and Milk Products are equally interestedthat is 13%
each.
Distributors of Beverages and Tomatoketchups,jams and pickles are leastinterested
because of the competitors they are working for. It includescompetitors such as
Kissan,Dabur.

Other findings from the survey of distributors are as follows:

41

1. The finding reveals that distributors are mostly working with two or more companies.
Only 20% distributors worked with single companies such as Babajinamkeen.
Moreover some companies like HUL have only 6 distributors catering to whole of
Delhi.Some companies like Haldiram have different set of distributors for different types
of products.
2. Only 5% distributors sign a formal agreement with the company prior to taking
thedistribution ship of the company. There is no formal deal between the distributors and
the company.

42

Competitors Schemes and Margins

Category

Brand
Real

Margins

Customer

Retailers

Schemes

Schemes

15%

3% extra
margin on
target sales

Tropicana

15%

Juices

Free Glass with

3% extra

every pack

margin on
target sales

Pickles

Saint

15%

Onjus

20%

Tops

20%

Mothers Recipe

37.5%

Nillons

15%

Maggie

10%

Buy 2, Get 1 Free

Trade discount
of 6%

Ketchup

Tomato Puree
Squash

Heinz

10%

Tops

12-13%

Del Monte

12-13%

Kissan

10%

Dawar

10%

Kissan

10%

Mapro

12%

Haldiram

10%

43

Findings from the study of margins and customer schemes:

Tropicana provides a higher margin to the retailer than the normalmargins of other
companies. On surveying it was found that they are notselling 100% juice at that price.
They are selling ready to serve beveragewhich has much lower pulp content than that of
juices.

The squash market is shrinking with only few players such as Kissan left in competition.
Some other players are Mapro.

Consumer scheme are only available with Onjus and Tropicana juice in the market. As we
have launched our products with consumer schemes like free bottle with a juice pack and
ketchup dispenser with each ketchup bottle, it will be able to attract more customers.

Recent launches in the ketchup category are that of Del Monte sauces .These are easy
flowing and have pieces of fruit and vegetables in it.

44

DATA ANALYSIS AND INTERPRETATION

1. Are you aware about the schemes running on Safal Products :180
160
140
120
100
80
60
40
20
0
a) Yes

b) No

82.5 percent customers aware about the scheme on Safal

Product.

2. If yes, through which medium did you come to know about the
schemes?

45

90
80
70
60
50
40
30
20
10
0

42.5 per cent customers know about the schemes by SMS.

3. Did you avail the scheme on Safal Juices/ Nectar 1 litre ?

140
120
100
80
60
40
20
0
a) Yes

b) No

66.5 per cent cost customers was not avail about the safal Juices/ Nectar.

4. If No, then what is the reason?

46

120
100
80
60
40
20
0

Price is main factor about the not avail theSafal Juices/Netar. Because
52.5 per cent customers said price is very high .

5. Did you avail the scheme on Safal Frozen Peas 500g/1kg?

180
160
140
120
100
80
60
40
20
0
a) Yes (please specify size)

b) No

80 per cent customers said not about the Scheme on Safal frozen peas
500/1kg

47

6. If no, then what is the reason?

120
100
80
60
40
20
0

Reason behind ,55 percentcustomers saysbetter scheme not avilable and 25

percent says price is high.

7. Did you try theNew& Improved Safal Tomato Ketchup 500g/ 1kg
launched recently?
180
160
140
120
100
80
60
40
20
0
a) Yes (please specify size)

b) No

85 per cent customers said no and only 15 percent customerssaid yes.

48

8. If no, then what is the reason?

140
120
100
80
60
40
20
0

62.5 percent customers says price is main reason.

9. If yes, please give your feedback on following parameters vis-vis Old Safal Tomato Ketchup:-

49

160
140
120
100
80

Poor

No Change

Better

60
40
20
0
a)Quality & Taste

b)Packaging

c)Price

d)Scheme

In safal Tomato Ketchup given parameters customers wants to change

75 percent price , 62.5 percent customers wants schemes and 50
percent customers wants to change in quality & taste.

CONCLUSION

50

Distribution is an important part of the marketing mix. Channel creation needs to be done for the
proper availability of goods with the retailers and hence the consumers. The effectiveness of
distribution coverage is very important. Understanding of the distribution coverage is important
for the manufacturer to plan and implement effective distribution strategy. Channel Strategy
includes recommendations for both identifying and managing channel partners. Many companies
are not getting the sales growth, market penetration and customer share they should because of
ineffective channel design and deployment. For proper marketing of the products we need
distributors who have a proper knowledge of the market and can aid in the proper distribution
and downward communication to the retailers and this information can be used by the company
to improve the products.
But it is seen that it is a herculean task to appoint good distributors for thecompany. The reasons
can be following:

The availability of capital with the distributor is another important consideration. As the
investment involved can vary from 5lakh/month to 201akh/month, distributor needs to see
if they can arrange such kind of capital for the new proposal.

Negotiations from distributors side can produce some hindrance as well. It may not be in
companies hand to fulfill all the requirement of the distributor and hence, not reach to an
acceptance.

A distributor is not interested by the proposal we have presented in front ofthem.

Distributor needs to check if whether the new proposal can be handledby them and if it
will prove beneficial for them or not.

We should not go in for distributors working with the companies of our competing brands
as it would only lead to time wastage as they would not be interested to distribute our
product.

The following can also be concluded:

51

 In a FMCG industry dealing with processed foods and beverages if we need to develop a
distribution network we need not consult all the distributors in the processed food
segment, rather we should go for distributors dealing in confectionary & cereal products
as they are most interested in the distribution as they are not distributing for any of the
competitors and hence would put in full efforts for the distribution to take place
efficiently. They also get a different product line to cater and can gain from the market
experience achieved by marketing a new product.
It can be concluded that the manufacturer force acceptance of the goods with advertising,
high markup offers, free merchandise, combination schemes. These allow initial
acceptance of the product by the Distributors.
The middleman is interested in selling any product which his customers desire to buy
from him. The attractiveness is not to be judged by markup, offering advertising and the
product but rather it is that whether it would fit the line or not.
Thus, we can say that the distributor has gained an important position in the market.

52

RECOMMENDATIONS

The following are the recommendations which Safal should adopt

Salary reimbursement that our company provides is same for each zone; it should be redistributed according to different zones so that they can be justifiable for different areas.

Safal should also consider distributors who are currently working with Safal and Mother
Dairy. They are working for different units but they can be easily contacted and as they
are already associated with our company, they might be interested in expanding their
business. Currently such distributors are the distributors of Safal Peas and Mother Diary
Ice-cream and Curd.

Safal can provide services like van subsidies, godown charges to the distributor so that
they are lured to work with the company.

Safal can provide the products to the distributor on credit basis as most distributors are
willing to work on credit basis only.

There can be changes in the price policy

Safal can provide a running product with the products we are offering like Safal peas to
boost up the sales. Product assortment can be done.

Safal can go in for aggressive promotions and advertising to make a presence in the
market.
Instead of going for a single distributor in the given Zone, Safal can appoint more than
one distributor so as to cater to whole of the area.
53

Questoinnare.
To know consumer satisfaction towards the safal juice in delhi Ncr.
Date :-

Q.NO.:-12

Centre:- Delhi city

Dear Sir/Madam
I am doing a brief survey to find out about consumer satisfaction
toward Safal juice brand in delhi city as per a part of my project.So,I
am requesting you to kindly cooperate with me in filling the
questionnaire.I am assuring you that information provided by you will
be academic purpose only.
Name:-

Contact no.:-

Address:-

Qualification:-

1) Gender of respondents
A)Male

B) Female

2) Your age group

A)Below 18
C)Above 25

B)18-25

3) Which type of fruit juice brand you are aware mostly?

A) Tropicano
B) Real
C) Safal
D) Other
4) Through which medium you come to know about your preferrd
fruit drink?
A) Hording and banners
B) News paper and magazines
C) TV/Radio

D) Any other

5) For Whom do you buy fruit drink?

A) My self

B) Family

C) Children

C) Social occasion

54

6)What quantity do you usually prefer to buy?

A) 200-500 ml

B) 300

C) 500 ml

D)1 ltr.

7) Which is your preferred channel for purchasing fruit drink?

A) Retail store/grocery store

B) super market/hyper

market
C) Restaurent

D) other

8) Does advertising and promotion influence your purchasing decision?

A) yes

B) no

9) Which flavor you like most?

A) mango

B) apple

C) litchi

D) mixed

E) lemon

F) grapes

G) orange

H) pineapple

10) upto how much price can you pay for a litre of juice?
A) upto to rs.-60

B) 61-65

C) 66-70

D) 71-75

E) more than 75
11) Does trade offer influence your purchasing decision?
A) yes

B) no

12) Would you like to give any suggestion regarding the Safal fruit
juice brand?

..Thank
you

55

Bibliography

ARUN KUMAR AND N MEENAKSHI, 2006. Marketing management.

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