A

Project Report
On

“To Study on Sales and Distribution

Channel”
Submitted in partial fulfilment of the requirements for the
Degree Certificate of

Master of Business Administration(M.B.A.)

By
Vikrant Ashok Munde

A Study Conducted for the Company:

Pidilite Industries Pvt Ltd.
At

International Institute of Management

Science
Chinchwad, Pune-411033
DECLARATION

I, Mr.Vikrant Ashok Munde hereby declare that this project is a record of authentic work
carried out by me during the academic year 2016-2017 and has not been submitted to any
other University or Institute for the award of any Degree or Diploma.

Signature of the student

(Vikrant Ashok Munde)

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 ACKNOWLEDGEMENT

I am deeply indebted to many people for the successful completion of this project. I
would like to take this opportunity and go on record to thank them for their help and support.

I am thankful to the International Institute of Management Science for all the support
provided for this project.

I express my deep sense of gratitude and sincere feelings of obligation to my Project

Guide Dr. Sagar Bhadange who helped me in overcoming many difficulties and who
imparted me the necessary conceptual knowledge.

I also wish to acknowledge the excellent support of my Company Guide

Mr.Sachin Madiwale for this work.

I wish to thank all my teachers and friends too, for their helpful inputs, insightful
comments, steadfast love and support.

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 Executive Summery

The objective behind this project is to gain an understanding how the selling and
distribution are carried out in Pidilite Sales office in Pune. The report requires thorough study
of the various section at all the levels and to conduct the detail study, a print questionnaire
was prepared for the retailer, customer and the distributor of Pidilite company of my area also
some questionnaire were prepare for Pidilite products but only to the retailers, that we come
to know the that what is the actual market of Piidilte and camel this helps us to know the
market share of Pidilite company the questionnaire helps me to know what the reaction of the
retailers about Pidilite product. I suggested some good method to the retailer which helps
them to increase the sales and keep a demand before the completion of the stock which helps
them at the time of urgency. Also I suggested some good techniques to pressurize the sales
executive to give attention on retailer. Many more things were that help him to know how to
keep a good relation between all the sales executive, sales man, and the distributor so that
every help each other in every activity to increase sales.

A conclusion was that there is a very big communication gap between the retailer and
all the sales men who give the retailer the Pidilite products. Based on questionnaire dada
collected from the survey made some recommendation were put across to the company for
improving in Pune.

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 INDEX

INTRODUCTION:- ................................................................................................................. 6

OBJECTIVES .......................................................................................................................... 7

CHAPTER 1:-COMPANY PROFILE ................................................................................... 8

CHAPTER NO. 2:-LITERATURE REVIEW .................................................................... 33

CHAPTER NO. 3:-RESEARCH METHODOLOGY ........................................................ 43

CHAPTER NO.4:-DATA ANALYSIS ................................................................................. 46

CHAPTER 5:- SCOPE & LIMITATIONS OF PROJECT ............................................... 60

CHAPTER NO.6:-LEARNING OF THE PROJECT ........................................................ 63

CHAPTER NO.7:-FINDING AND SUGGESTION ........................................................... 65

CHAPTER NO. 8:-ANNEXURE .......................................................................................... 69

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 INTRODUCTION:-

Generally in the market it is known that Pidilite is facing tough competition from camel
product in a market. The retailers are facing major problems in margin, service and supply
and demand.

Generally, demand pattern of fevicol and acrylic colour regular but it special occasions, like
in Ganapati season.

SELECTION OF SUBJECT:-

The subject which I preferred for my research is sales and distribution channel of
Pidilite Company in Pune region. When I sales stationery product in Shop they keep in mind
all time the services provided by that particular company like delivery of goods on time and if
the delivery of goods will not be done on time then the retailer is going on lose the sales of
that product.

A channel of distribution is a structure of inter-company organisation, units and inter-

company agents and dealers, Wholesalers and retailers through which a commodity, products
or service is marketed. There are so many types so many distribution channels are being used
by Pidilite company in at Pune region.

In recent this year the Pidilite company was developed two more product and more
competitive due to various schemes and offers provided by the company. These two product
names are 1) 3D colouring book kit, 2) A+ fevicol.

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 OBJECTIVES

 To study the effectiveness of channels of distribution.

 To understand the Distribution channel of Pidilite Industries Ltd in pune market.
 To study the problems faced by the dealers with respect to Pidilite.
 To study the satisfaction level of dealers regarding Pidilite.

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CHAPTER 1:-COMPANY PROFILE

8
HISTORY OF PIDILITE COMPANY

1969
- The Company was incorported as a private limited company on 28th July under the name of
Parekh Dychem Industries Pvt. Ltd., to acquire and take over on a going concern the business
carried on by a partnership firm M/s. Parekh Dychem Industries established in 1961 and
having a factory in Mumbai. The Company was promoted by Balvantray Kalyanji Parekh
along with his brothers. The brand names, are being Fevicol, Fevibond, Fevigum, Pidifix,
Pidivyl, Pidicryl, Acrolise, etc.
- The Company undertook to set up synthetic resin project with a capacity resin project with a
capacity of 3000 TPA at Mahad Industrial area in Raigad district, Maharashtra. Also
undertook to set up a constructions chemicals project at Taloja industrial area, Taloja,
Maharashtra.
1984
- Three other companies in the same group viz., Kodivita Pvt. Ltd., erstwhile Pidilite
Industries Ltd., and Triveni Chemicals Ltd. were amalgamated with the Company effective
1st July, 1st April 1989 and 1st April 1992 respectively.
- Effective 1st July, Kondivita Pvt. Ltd. amalgamated with the Company after necessary
approvals. The shareholders of erstwhile Kondivita Pvt. Ltd., were allotted 41,000-15%
preference share of Rs 10 each and 19,500 shares of Rs 10 each.
- 54,000 I and II Pref. - 4% shares allotted to promoters. 26,000 No. of equity shares allotted
to promoters originally: 26,000 Rights shares issued in prop. 1:1 in 1980, 52,000 bonus
shares issued in prop. 1:1 in 1981
- I & II Pref. 4% shares redeemed. 12% redeemable shares upgraded to 15%. 19,500 No. of
equity shares and 41,000-15% Pref. shares allottee to Kondivita Pvt. Ltd. on amalgamation.
54,000-15% Pref. shares allotted to promoters & in lieu of 1st and 2nd 4% Pref. shares.
1986
- The Name of the Company was changed to PDI chemicals private limited on 1st July, and
then to PDI chemicals limited, on 28th October, 1988. Name was once again changed to
Pidilite Industries Ltd., on 21st February, 1990.
1989

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- Effective 1st April, Pidilite Industries Ltd. was amalgamated with the Company. As per the
scheme of amalgamation, 1,93,500 No. of equity shares of Rs 10 each and 72,000-15%
preference shares of Rs 10 each were allotted to the shareholders of erstwhile Pidilite
Industrial Ltd.
1992
- As per the Scheme of Amalgamation approved by High Court of Mumbai, Triveni
Chemicals Ltd., (TCL) was merged with the Company effected 1st April. Accordingly 90588
No. of equity shares of Rs 10 each and 40,000-15% preference shares of Rs 10 each were
allotted to the erstwhile shareholders of TCL. 38,49,034 shares allotted in prop. 72:10 to
promoters on 29.1.93.
1993
- 15,36,378 shares issued at a premium of Rs 100 per share in October. Of which 1,50,000
shares issued on preferential allotment basis to Viny Chemicals India Ltd. (only 1,35,000
shares taken up). Balance 13,86,378 shares along with 1,50,000 shares not taken up were
issued to the public (all were taken up).
1994
- The projects for SBR Latices, AZO Pigments and Carbazole Dioxiene Violet Pigments were
commissioned.
- Apuraj Chemicals Ltd., was amalgamated with the Company. As per the scheme of
amalgamation, 66,000 No. of equity shares of Rs 10 each were allotted to the shareholders of
erstwhile Apuraj Chemicals Ltd.
- Vapkon Finance & Industries Ltd., Fevicil Adhesives & Chemicals Ltd. and Pidifin Finance
and Investment Ltd., are subsidiaries of the Company.
- 60,000 No. of Equity shares of Rs. 10 each to be issued and allotted to equity shareholders
of the erstwhile Apuraj Chemicals Ltd. pursuant to the scheme of amagalamtion.
1995
- Expansion project at Taloja was commissioned with an overall plant capacity of 2400 TPA
of construction chemical.
- The Company's technical collaboration agreement with Schomburg & Co., KG. Germany
for transfer of technical process know-how and specifications of the plant etc., was extended
till 8th September.
1996

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- The first phase of grass root plant for manufacture of synthetic resins of various types was
commissioned in March at Mahad with a capacity of 7800 TPA. In the second phase, a loop
process plant for continuous emulsion polymerisation was to be commissioned.
- Introduction of several new products in technical collaboration with M/s. Crown Berger
Ltd., U.K.
- The Company allotted 61,17,200 No. of equity shares of Rs 10 each as bonus shares in the
ratio of 1:1. 3,800 shares were kept in abyeance due to dispute relating to the title of the
same.
1997
- 600 bonus shares allotted from Bonus Share Issue Suspence Account.
- The company has set up three wind mills of 230 kv each at Village Pransla near Dhank In
Gujarat.
- The Pedilite Industries Limited, manufacturer of the popular Fevicol brand of adhesives, is
actively scouting around for buyers for its chemical and specially resins business. The
company has been in talks with several international players in a bid to either sell off the
business or enter into a joint venture.
1998
- Triveni Chemicals, another group company was also merged with PIL in 1992. PIL's
consumer products division was set up in 1984.
- The Board of Directors gave their approvals for the amalgamation of PGP Engineering
works Ltd and Pidilite Finance Ltd. with the company itself effective 1-4-99. Also, Nebula
Chemicals Ltd. manufacturers of certain grades of adhesives, was to be amalgamated with the
company subject to necessary approvals.
- 2,800 bonus shares kept in abeyance allotted.
1999
- Pidilite Industries is re-engineering itself into a pure brand-oriented marketing company and
is hiving of its manufacturing facilities into a joint venture with a strategic partner.
2000
- The Company has acquired from Mahindra Engineering & Chemical Products Ltd (MECP),
subsidiary of Mahindra & Mahindra Ltd, their adhesives and sealants business consisting of
the brand M-Seal and Mr. Fixit along with goodwill of MECP's adhesives and sealants
business.

11
2001
-Pidilite Industries Ltd has posted 5.76% lower net profit at Rs.12.76cr for the second quarter
as compared to Rs.13.54cr in the same period last year.
2002
-Income Tax Department has issued a notice to Pidilite Industries Ltd, for an additional
income tax liability of Rs.16cr.
-Pidilite Industries has taken over an insulation tape brand called Steel Grip, for Rs.8cr from
Bhor Industries.
-Pidilite Industries is expanding its presence in Fabric care, car care and stationery segments
as part of its strategy to broadbase its produt portfolio.
2003
-Pidilite Industries has tied up with Chota Jadugar, the 3D movie distributed by Srinagar
films to help its new launch AcronRangeela Colours
-Pidilite unveils new liquid pipe sealant
-Pidilite unveils Fevicol Marine 2005
-Pidilite enters into snack market with 'Chikkers'
-Pidilite Industries has acquired Dubai-based company UCC, manufacturer of construction
chemical brand "Probuild" for an undisclosed amount.
-Company has splits its Face value of Shares from Rs 10 to Re 1
2006
- Pidilite Industries Ltd has informed that the Board of Directors of the Company at its
meeting held on October 17, 2006 has noted the resignation of Shri Amit Roy, Director and
Whole time director with effect from December 31, 2006.
-Pidilite Industries Ltd has informed that the Board of Directors of the Company at its
meeting held on December 02, 2006, Shri. V S Vasan has been appointed as an Additional
Director and also as Whole Time Director of the Company with effect from December 02,
2006.
2007
-Pidilite Industries Ltd has appointed Mr.Mandar M.Tambe as the Company Secretary,
Compliance Officer under Clause 47(a) of the Listing Agreement and Compliance Officer
under SEBI (Prohibition of Insider Trading) Regulations, 1992 in place of Mr.P.C.Patel, who
was holding the said position till 30/11/2007.

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2008
- Pidilite Industries Ltd has appointed Shri. Bharat Puri as an Additional Director of the
Company with effect from May 28, 2008.
2009
- Pidilite Industries Ltd has informed that Shri. Debu Bhattacharya has been appointed as an
Additional Director of the Company with effect from February 26, 2009.
2010
-Pidilite Industries has given the Bonus in the Ratio of 1:1
-Ms. Savithri Parekh has been appointed as the Company Secretary and Compliance Officer.
2011
-PidiliteInds - Appointment of Foreign Currency Convertible Bonds (Share Allotment).
-Shri Sanjeev Aga has been appointed as an Additional Director of the Company.
2012
-Pidilite Industries Ltd has entered into a Joint Venture Agreement with Hybrid Coatings for
manufacture of construction chemicals and to establish a Joint Venture Company in India for
this purpose.
-Pidilite Industries Ltd has the name of the Registrar & Share Transfer Agent (RTA) of the
Company has been changed from "TSR Darashaw Limited" to "TSR Darashaw Private
Limited".
2013 -Pidilite Industries incorporated a subsidiary Company in the name of "Percept
Waterproofing Services Ltd" for the purpose of carrying on business of services relating to
waterproofing including consultancy and project based services etc.
2014 -Pidilite Industries Acquisition of Adhesive Business of Blue Coat Private Ltd. - Pidilite
Industries alongwith its Wholly owned subsidiary Pidilite International Pte Ltd. has
incorporated a pvt ltd subsidiary Company in Ethiopia in the name of "PIDILITE
CHEMICAL PLC" for manufacture of adhesives, mastics, paints, varnishes or similar
coatings, printing, writing and painting inks etc.
2015 -Pidilite Industries Limited along with its Wholly owned subsidiary Fevicol Company
Limited has incorporated a Company in the name of "WOOD COAT PRIVATE LIMITED"

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BOARD OF DIRECTORS:-

S.No Name Designation

1 Mr.M B Parekh Executive Chairman
2 Mr.N K Parekh Vice Chairman
3 Mr.Bharat Puri Managing Director
4 Mr.A B Parekh Whole Time Director
5 Mr.A N Parekh Whole Time Director
6 Mr.Sabyaschi Patnaik Whole Time Director
7 Mr.B S Mehta Director
8 Mr.Ranjan Kapur Director
9 Mr.Sanjeev Aga Director
10 Mr.Uday Khanna Director
11 Mrs.Meera Shankar Director
12 Mr.Vinod Dasari Director

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COMPANY PROFILE IN BRIF:-

Pidilite was established as a partnership firm with parekh Dyechem Industries in 1961

Name changed to PDI industries after manager with kondivita industries in 1989.

Pidilite has become the largest manufacturer of adhesive.

Pidilite‟s mainstay of earnings is consumer and industrial adhesives and sealants.

Fevicol is the company‟s largest brand.

Expansion of product portfolio has lead it to be recognized as a leading FMCG player.

Company has in total 40 brands spanning 400 industrial and consumer products.

Some leading brands fevicol, fevistick, fevigum, acrylic color, ramgeela, etc.

It has launched several new products in last few years like fevistrick, feviseal.

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PRODUCTS:-

Year Months Product name Sales Sales unit of Sales value Product
quantity measurement (Rs. Crores) Mix(%)
1703 12 Consumer Family 0 4366.9 82.41
Products
1703 12 Industrial Products 0 882.72 16.65
1703 12 Others 0 49.03 0.92

PRODUCT NAME OF PIDILITE INDUSTRIES LTD.

1) Fevicol

Fevicol is India’s Most Trusted Brand of Adhesives

Pidilite‟s biggest bond is through the Fevicol family of products. Fevicol has become a
household name that is today synonymous with adhesives. The brand has introduced many
innovative products which have transformed the way carpentry trade operates in India.

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 2) Fevicol MR

For The Love of Art And Craft

Explore your creative side

Fevicol MR‟s biggest strength is its high bonding strength. It is used to bond a variety of
substrates like cardboard, paper, polystrene, wood and other material. Loved for its superior
quality, ease of application and distinguished advertising, this synthetic white adhesive has
made its way to the hearts and minds of millions. The iconic brand is trusted by consumers of
all age groups, and suits the needs of children, offices and households.

Fevicol is available in over 5 lakh outlets in India, and on an average, 4 units of Fevicol MR
are sold per second!

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 3) Fevistick

Born To Make India Mess-Free

Fevistik pulls consumers out of sticky situations.

There was a time when adhesives were only available in liquid form and paper-to-paper
sticking meant sticky fingers and an overall messy experience. Pidilite, being the pioneers in
adhesive segment, addressed this issue 20 years back through the launch of Fevistik.

Fevistik made sticking clean and convenient through its innovative rotary gluestick form.
Today, Fevistik is India‟s highest selling gluestick and is synonymous with the category. It is
available in four convenient pack sizes of 5g, 8g, 15g and 22g

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 4) Fevigum

Fevigum – Synthetic Gum

Fevigum is a non-toxic, hygienic synthetic gum. It comes in different coloured “squeezy”

bottles with lovely fragrance options. Its attractive packaging and non-toxic nature makes it
perfect for kids. It has excellent paper-to-paper bonding.

5) Gluedrops

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 6) Rangeela:-

Rangeela comprises of a range of colours primarily aimed at satisfying the art & craft needs
of students. Major products include Rangeela Tempera colours and Rangeela – Safe
Moulding Dough and Paper Glitter.

Rangeela Tempera colours are ideal for easy art and craft ideas and can enhance personalised
handmade gifts. They can be used to decorate greeting cards, pots, paintings, thermocol
products, and more. They are extremely easy to use and are safe for children. These colours
are economical, washable, available in bright shades, safe and non-toxic.

i) Rangeela tempracolor

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ii) Rengeela paper gliter

iii) Rangeela Modelic dough clay

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 7) Hobby idea

Fulfilling Every Creative Need

A unique and complete experience for art & craft enthusiasts

There was a time when art & craft lovers across India had to make do with substandard
products to fulfill their creativity. Good quality products were either rarely available or
overpriced as these were mostly imported. To fulfill this gap, Pidilite launched Hobby Ideas
in February 2002 as India‟s first chain of art, craft and hobby stores offering over 2500
products, expert advice and exciting workshops.

It currently has 5 stores across Mumbai and Pune. HobbyIdeas enjoys a strong online
presence too via its website www.hobbyideas.in and Youtube, Instagram and Facebook
handles. Consumers from all across the world reach out to share their DIY ideas, experiences
and ask our experts queries who are available round the clock to help them.

i. Fabric glue

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 ii. 3D Outliner

iii. Shilpkar

Clay Crafting Takes Innovative, New Shapes

Fevicryl Shilpkar is a simple and easy to use epoxy compound specifically formulated to
meet the clay crafting needs of hobbyists. Its easy pliability helps hobbyists create any shapes
or forms in minutes. Paint the creation with Fevicryl acrylic colours and watch it transform
into a masterpiece!

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 iv. Glass color

v. Fevicryl color

Ideal For Painting On Fabric

Fevicryl Acrylic Colours is the category leader as it can be used on an endless variety of
surfaces. A range of variants – Pearl, Pearl Metallic and Sparkling Pearl – suit every creative
expression and are available in different pack sizes to serve the varying needs of the hobby
consumer.

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8) Colouring books for adults

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VISION AND MISSION

Vision
To Be The Most Innovative Research and Technical Competence Center for
Sustaining “Innovation-Driven” Growths for Pidilite Group of Companies globally.

Mission
 Invite, invest, and embrace talented people and scientists for great challenges ahead
 Support, serve, and satisfy all valuable customers with our innovative products and
excellent technical competency
 Innovate with our customers to provide total product satisfactions and business
growths

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COMPETITORS:-

Regional brands

Small players in unorganized sector

Large companies like jubilant organises

PIL Export Internationally To

 Europe
 UAS
 Middle east
 Africa
 Asia
 Australia
 Japan

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STRENGTHS:-

Pidilite‟s min strength is their strong marketing advertising skills.

Fevicol is an immensely strong brand. It is so strong that anything that has a prefix
„Fevi‟ to is sells without any effort by the shopkeeper.

Pidilite earns 50% plus revenues from adhesives segment whose brand have excellent
recall value.

OPPORTUNITIES:-

One can see signs of „3m of India‟ in Pidilite. And 3M is a $60 billion company.
Pidilite can become a big company if things go well.

Growth in the retail sector in India is a positive for Pidilite, especially the future
growth of home specific store like home town and home shop.

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DISTRIBUTION STRUCTURE OF PIDILITE INDUSTRIES

Manufacturing Units

Mother Go dawns

C&F Agents Company Depots

WSS
(Whole sale Stockiest)

Wholesaler Retailer

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TRANSPORTATION SYSTEM:-

Factory
(Maharashtra)

Trucks

Mother Godown
Trucks Trucks

Kanpur Company Ghaziabad C&F

(Depot) Agent

Trucks Trucks

WSS (42) WSS (46)

Wholesaler

Retailer Retailer Retailer Retailer

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DISTRIBUTORS ALL OVER IN PUNE

Criteria for selecting the distributors:

The company looks at the prospects before permitting/Authorizing for distributor. Therefore
the criteria‟s are as follows,

 He should have a godown

 Vehicles
 Manpower
 Deposit for cases/crates at the rate of 200 each
 Liquid value

NAMS OF THE DISTRIBUTORS IN ALL OVER PUNE

1.Maxa
2.RJ
3.Shree Traider
4.Ratnamurthi
5.Chakradhar
6.Shree Ram agency

Working of distributors

The distributor first has to maintain the following

 The Brand pack separately after unloading the vehicle i.e. the brand order in the
following sequence
-Fevicol
-Fevistick
-AcrylicColur
-Hobby Idea
- Other Products of Pidilite

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DISTRIBUTORS ROUTE PLANNING:

Distributors identify two routes they are,

 Potential route
 Non Potential route

Note: For Potential the vehicle goes daily and for non potentials it goes once in a week

The potential routes are those routes in which the distributor gets maximum business as
the number of outlets will be more and therefore the vehicle goes daily to meet the market
demand.

Ex: If a distributor has 300 outlets in his area he has to plan accordingly as per his route
where in he has to visit 40 outlets per route.

The role of distributor in market:

The distributors‟ salesman is trained properly with respect to his behaviour with the retailers.
As soon as the vehicle goes to the outlet it is the duty of the sales person to

1. Greet the retailer and have a look at the display of brand.

2. He has to suggest the retailer about the stock needed
3. Convince him for purchase
4. Follow up and handle complaints

Support from the company to the distributor

The company supports the distributors in terms of incentives during the off season

32
CHAPTER NO. 2:-LITERATURE REVIEW

33
LITERATURE REVIEW:-

Most producers do not sell their goods directly to the final user, betweenthem a s
tand a set of intermediaries performing variety of functions. Theintermediaries
are a chain each passing the product down to the chain to the next organization, before it
finally reach the consumer or end user. This process is known as the
“distribution chain” or the “distribution channel”.

Eachof the element in this chain will have their own specific needs which theprod
ucer must take into account along with those of all the important end-user. A distribution
channel includes several inter-connected intermediaries suchas -
farmer service center, cooperative societies, distributors, whole seller etc.Each
intermediary receives the goods at one pricing point and moves it to thenext higher pricing
point until it reaches the final buyer.

A channel of distribution is a bridge to cover the gap between

manufacturer and consumer. So, it is very important for the company to have
aneffective channel of distribution. Distribution channel often require the assistanceof
others in orders to enable the market to reach its target market. Accompany
can he handle its own distribution functions in a better position to exercise the control
over product sale and potentially earn higher profit. At present, internet has made
it much easier to distribute products thus lessening the need for others to be involved in
selling a company‟s product

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 CHANNEL OF DISTRIBUTION:-
Definition:

“ A channel of distribution or marketing channel is the structure of intra company

organisation units and extra company agents & dealers, wholesale and retail through which a
commodity, product or service is marketed”

----American Marketing Association

“Distribution Channel is a set of interdependent organisation involved in the process of

making a product or service available for use or comsumtion by consumer or business use”.

----Phillip Kotler

Producers produce fewer products in large quantities and customers want more product in
smaller quantities and broader assortments wanted by the customers and break them into
smaller and broader assortments wanted by the customers

Means used to transfer merchandise from the manufacturer to the end user.Intermediaries in
the channel are called middlemen. Those who actually take title toothed merchandise and
resell the goods are merchant middlemen. Those who act as Broker but do not take title are
agent middlemen. Merchant middlemen include wholesalers and retailers. Agent middlemen
include Manufacturer's Representatives, brokers, and sales agents. Whether these exchange
processes occur between manufacturers and their suppliers,
retailers and consumers, or in some other buyer-seller relationship, marketingchannels offer
an important way to build competitive advantages in today's global marketplace. This is so
for two major reasons:
• Distribution strategy lies at the core of all successful market entry and expansion strategies
. The globalization of manufacturing and marketing requires the development of exchange
relationships to govern the movement of goods and services.
Marketing is the key factor of business. It is a very exciting field. The modern concept
of marketin is different from the traditional concept. The old conceot was based on the
physical movement of goods. In the modern concept, marketing is human activities directed
to satisfying needs and wants through exchange process. So Philip Kotler has defined “

35
Marketing is a social and managerial process by which individual and group obtain what they
need and want through creating and exchanging product and value with other.”

In the following study, an attempt has been made to study the promotional strategies
and market position of Stationary product (fevicol, hobby idea)carried by Pidilite Pvt. Ltd.
This eight week training in the organisation was of great help. Through in eight weeks it was
not possible to understand it deeply but an overall idea was developed regarding the market
envoirement.

DISTRIBUTION SYSTEMS:-

A channel of distribution or marketing channel is a structure of inter-company

organization, units and inter-company agents and dealers, wholesalers and retailers through
which a commodity, product or service is marketed defined by(AMA).

Various types of distribution channel methods are being used by Pidilite Company in
Pune

1) One level 2) Two level

Manufacturer Manufacturer

Retailer Distributor

Consumer Retailer

Consumer

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Nature and Importance of Channels

Most businesses use third parties or intermediaries to bring their products to market.

They try to forge a "distribution channel" which can be defined as “All the organizations
through which a product must pass between its point of production and consumption“

Why does a business give the job of selling its products to intermediaries?

The answer lies in efficiency of distribution costs. Intermediaries are specialists in selling.
They have the contacts, experience and scale of operation which means that greater sales can
be achieved than if the producing business tried to run a sales operation itself.

Channel Design Decision

Understand the consumer

requirement

Farming Channel Objective

Identifying Alternatives

Evaluating of Alternatives

Understand the consumer requirement

Consumer is interested in different services from the company and the channel must deliver
value to the consumer. We need to identify his needs and satisfy it. Consumer convenience,
the mode of delivery, credit, service, installation, place of purchase, type of product
assorment. All these factors required here.

Farming Channel Objective

Nature of the company, product characteristics, type of channel memebers, competitors and
the prevailing business envornment should be considered by the company. Legal conditions
and macro ecnomic situation of the country should also be considered. It is based on PLC

37
Identifying Alternatives

After setting the channel objectives the company should identify channel alternatives in terms
of types of intermediaries, number of intermediaries, and the responsibilites of each member.

Types of Intermediaries:

1. Company Sales Force

2. Manufacturing Agency

3. Industrial Distributor (region wise ex. Supermarket, mail orders, exclusive show rooms)
Number of Marketing Intermediaries:

1. Intensive Distribution (Tooth paste in Many outlets)

2. Exclusion Distribution

3. Selective Distribution

Evaluating of Alternatives

The company should select the best channel which will suit its long term objectives.

It should consider the factors like probability, share of control and adaptive nature of each of
the channel

Cost of transaction is low for direct marketing channels like internet and telemarketing but
value addtion also very low.

With direct sales channel like company sales force the cost per transtion is high and the value
addition is high

Indirect channels like retailers, distributors the cost per transaction is moderate and the value
addition is also moderate.

38
Functions of distribution channels:-

1. The primary function of a distribution channel is to bridge the gap between

production and consumption.
2. A close study of the market is extremely essential. A sound marketing plan depends
upon thorough market study.
3. The distribution channel is also responsible for promoting the product. Awareness
regarding products and other offers should be created among the consumers.
4. Creating contacts or prospective buyers and maintaining liaison with existing ones.
5. Understanding the customer's needs and adjusting the offer accordingly.
6. Negotiate price and other offers related to the product as per the customer demand.
7. Storage and distribution of goods
8. Catering to the financial requirements for the smooth working of the distribution
chain.
9. Risk taking for example by stock holding

Objective of distribution channel:-

1. Provide convenience to customers in getting the product at the right time and
at the right place.
2. Achieve optimum distribution coast.
3. Give choice of selection of goods to customers.
4. Effective display and storage of goods.
5. Resolve the channel conflict successfully.
6. Motivate channel member for effective promotion and selling of products.
7. Maintain competitive advantage for the manufacturer.
8. Ensure best possible coverage of the target market.

39
Advantages and Disadvantages of Distribution Channel

Advantages

When a customer is considering buying a product he tries to access its value by

looking at various factors which surround it. Factors like its delivery, availability etc which
are directly influenced by channel members. Similarly, a marketer too while choosing his
distribution members must access what value is this member adding to the product. He must
compare the benefits received to the amount paid for using the services of this intermediary.
These benefits can be the following:

Cost Saving

The members of distribution channel are specialized in what they do and perform at much
lower costs than companies trying to run the entire distribution channel all by itself.

Time Saving

Along with costs, time of delivery is also reduced due to efficiency and experience of the
channel members. For example if a grocery store were to receive direct delivery of goods
from every manufacturer the result would have been a chaos. Everyday hundreds of trucks
would line up outside the store to deliver products. The store may not have enough space for
storing all their products and this would add to the chaos. If a grocery wholesaler is included
in the distribution chain then the problem is almost solved. This wholesaler will have a
warehouse where he can store bulk shipments. The grocery store now receives deliveries
from the wholesaler in amounts required and at a suitable time and often in a single truck. In
this way cost as well as time is saved.

Customer Convenience

Including members in the distribution chain provides customer with a lot of convenience in
their shopping. If every manufacturer owned its own grocery store then customers would
have to visit multiple grocery stores to complete their shopping list. This would be extremely
time-consuming as well as taxing for the customer. Thus channel distribution provides
accumulating and assorting services, which means they purchase from many suppliers the
various goods that a customer may demand. Secondly, channel distribution is time saving as
the customers can find all that they need in one retail store and the retailer

40
Customers can buy in small quantities

Retailers buy in bulk quantities from the manufacturer or wholesaler. This is more cost
effective than buying in small quantities. However they resell in smaller quantities to their
customers. This phenomenon of breaking bulk quantities and selling them in smaller
quantities is known as bulk breaking. The customers therefore have the benefit of buying in
smaller quantities and they also get a share of the profit the retailer makes when he buys in
bulk from the supplier.

Resellers help in boosting sales

Resellers often use persuasive techniques to persuade customers into buying a product
thereby increasing sales for that product. They often make use of various promotional offers
and special product displays to entice customers into buying certain products.

Customers receive financial support

Resellers offer financial programs to their customers which makes payment easier for the
customer. Customers can buy on credit, buy using a payment plan etc.

Resellers provide valuable information

Manufacturers who include resellers for selling their products rely on them to provide
information which will help in improving the product or in increasing its sale. High-level
channel members often provide sales data. On all other occasions the manufacturer can
always rely on the reseller to provide him with customer feedback.

Disadvantages

Revenue loss

The manufacturer sells his product to the intermediaries at costs lower than the price at which
these middlemen sell to the final customers. Therefore the manufacturer goes for a loss in
revenue. The intermediaries would never offer their services to the manufacturer unless they
made a profit out of selling his products. They are either made a direct payment by the
manufacturer, for instance shipping costs or as in the case of retailers by selling the product at

41
costs higher than the price at which the product was bought from the manufacturer (also
known as markup). The manufacturer could have sold at this final price and made a greater
profit if he had been managing the distribution all by himself.

Loss of Communication Control

Along with loss over the revenue the manufacturer also loses control over what message is
being conveyed to the final customers. The reseller may engage in personal selling in order to
increase the product sale and communicate about the product to his customers. He might
exaggerate about the benefits of the product this may lead to miscommunication problems
with end users. The marketer may provide training to the salespersons of retail outlets but on
the whole he has no control on the final message conveyed.

Loss of Product Importance

The importance given to a manufacturers product by the members of the distribution channel
is not under the manufacturers control. In various cases like transportation delays the product
loses its importance in the channel and the sales suffer. Similarly a competitor‟s product may
enjoy greater importance as the channel members might be getting a higher promotional
incentive.

42
CHAPTER NO. 3:-RESEARCH METHODOLOGY

43
REARCH METHODOLOGY:-

“Marketing Research is the systematic designing, collection, analysis, and reporting of data
and finding relevant to a specific marketing situation facing the company.”

The present study of markets in Pune is based on survey methods. In survey methods,
there are two types of survey. One is Census Method and another is Sampling Method. In this
sample survey methods I have taken only a small part of the whole and data collected from
the small part are made applicable to the whole i.e. I have taken Pune and some adjacent area
of Pune like Karve Nagar Pune City etc.

Within the time limit, I tried my best to select the sample representative of the whole
group. During my training, I maintained different chart for different routes during my dealer
survey. I have collected data from the distributor in Pune.

RESEARCH DESIGN:-
Method of Research Design: Exploratory Research Design.

1) SURVEY:-

For the survey purpose the entire Pune city was divided into some parts,

1. Karve nagar
2. Sadashiv peth
3. ABC
4. F.C. Road
5. Aundh
6. Baner Balewadi
7. Pashan Bavdhan
8. Poud Road

As per the route planner provided by the company the survey.

44
 2) IMPLEMENTATION:-

After the survey was conducted the Implementation work was carried out for the surveyed
outlets, during the remaining period. In this procedure the visits were made to the outlets
along with the vehicle and seen that the different problems encountered with the outlets
during the survey were sorted out and seen to it the promotional activities were actually
implemented.

The problems of display, Credit etc was known during survey. So these problems were solved
during the implementation part.

It was also seen that every outlet survey had a proper display of the company‟s product.

DATA SOURCES AND SAMPLING:-

Primary data collection involved distributors, retailers and consumers

Research Approaches : Survey

Research Instrument : Questionnaire

Sampling Plan

Sampling Unit : Retail Outlet/shop

Sampling size : 100

Sampling procedure : Convenient Sampling

45
CHAPTER NO.4:-DATA ANALYSIS

46
DATA ANALYSIS:-
The process of evaluating data using analytical and logical reasoning to examine each
component of the data provided. This form of analysis is just one of the many steps that must
be completed when conducting a research experiment. Data from various sources is gathered,
reviewed, and then analyzed to form some sort of finding or conclusion. There are a variety
of specific data analysis method, some of which include data mining, text analytics, business
intelligence, and data visualizations.

47
 1) Do you know about Pidilite as a company?

Particular Respondents Percentage

Yes 60 60
No 40 40
Total 100 100

Sales

40
Yes
No
60

Interpretation

The above information received from the survey

We observed that only 60% of people know about Pidilite.

48
 2) How is the relationship with the distributor?

Opinion Frequency Percentage

Good 99 99%
Bad 1 1%
Total 100 100%

Frequency

Good
Bad
99

Interpretation

The above chart shows that 99% of the retailers had good opinion towards
the distributors.
Only 1% of the retailers had bad opinion therefore the distributors have to
control this aspect because the word of mouth plays a very important role
and they should try to make their relationship 100%.

49
 3) How many times the distributor visits outlets per week.

Particular Frequency Percentag

e
Once 7 7%
Alternativ 47 47%
e
Daily 46 46%
Total 100 100%

Frequency

8 7
Once
Altenative
40 Daily
45
Other time

Interpretation

The above chart reveals the frequency of visit made by the distributor in
the market. This chart shows that to 47% of the outlets surveyed the visit
was on alternative days, 46% of the outlets surveyed the visit was on daily
basis and 7% of the outlets surveyed the visits are made once a week. This
shows that the company is mostly following the Alternative and daily
routes.

50
 4) How many times they are is expected to visit by you.

Particular Frequency Percentage

Once 3 3%
Alternative 36 36%
Daily 61 61%
Total 100 100%

Frequency

36
Once
61 Alternative
Daily

Interpretation

The above chart shows that there is a huge demand for Pidilite Products in Pune city and
therefore 61% of the retailers are expecting daily visits from the distributors in order to meet
the demand from the consumers, therefore the company has to look to this aspect seriously.

36% expect an alternative days visits instead of daily visits, the outlets which are non
potential outlets expect the distributor to visit once a week.

51
 5) Are you satisfied with the profit margins you are getting?

Particular Distributor Percentage

Highly Satisfied 40 40%
Moderately 35 35%
Satisfied
Less Satisfied 25 25%

Total 100 100%

Distributor

25
Highly Satisfied
40
Moderately Satisfied
Less Satisfied
35

Interpretation

The above chart shows that the Distributors in Pune 40% is the Highly Satisfied
Distributor, 35% Moderately Satisfied Distributors and 25% Distributors are less satisfied.

52
 6) Which type of delivery channel you would prefer?

Particular No. of Percentage

responses
0 level 5 5%
1 level 60 60%
2 level 20 20%
3 level 15 15%
Total 100 100%

No. of responses
60

40
60 No. of responses
20
20 15
5
0
0 level 1 level 2 level 3 level

Interpretation

From the above information received from the respondents we can say
that the preference for Channels of Distribution that Retailers look for Pidilite
product is “Level One”. As we can see 60% of respondents agree with “Level
One”. Hence, preference for Channels of Distribution that Retailers look for
Pidilite product is “Level One”.

53
 7) When a customer comes to your shop which brand does he/she demands?

Particular Stationary Percentage

shop
Fevicol 60 60%
Fevistick 40 40%
Total 100 100%

Respondents

60
50
40
Respondents
30
20
10
0
Fevicol Fevistick

Interpretation

Most of the respondents say that the customer demand is fevicol and fevistick in a
shop.

54
 8) Which company‟s Acrylic color‟s demanded most?

Particular Demand Percentage

Pidilite 55 55%
Camel 40 40%
Other 5 5%
Total 100 100%

Sales

Pidilte
40 Camel
55
Other

Interpretation
The above chart shows most of the demand as compare these two company 55%
pidilite company and 40 camel company and other 5% demand in a pune market

55
9) How effectively your distributors help in promoting the Pidilite product. ?

Particular No. of Percentage

Responses
Helps in Visibility of 40 40%
Product
Conducting dealer 50 50%
meets
Road show & 10 10%
exhibitions
Total 100 100%

No. of Responses

50
40
30
20
10 No. of Responses
0
No. of Responses
Visibility of
Conducting
Product Road show
dealer
meets &
exhibitions

From the above table shows the

40% Responses of Visibility of Product
50% Responses of conducting dealer meet
10% Responses of Road show and exhibition

56
 10) Do you receive the delivery of Pidilite products in time?

Particular No of Percentage
response
s
Yes 70 70%
No 30 30%
Total 100 100%

No of responses

30

Yes
70 No

Interpretation

From the above table 70% respondents receive the delivery at time and 30%
respondents are self of delivery is delay

57
 11) How much are you satisfied with the Pidilite products?

Total Percentage
Response
Fully satisfied 85 85%
Partially satisfied 5 5%
Not Satisfied 10 10%
Total 100 100%

Total Reaspons
100
80
60
40 Total Reaspons
20
0
Fully Partialy None of
satisfied satisfied the
above

Interpretation

The above data shows the reviews of the clients regarding the Pidilite products. The good
thing about the products is 85% clients are satisfied.

58
 12) Any suggestion for improving stock for high sales?

No of
responses
To introduce scheme chart 40
Regular Visit 20
Modification in any 10
products
Develop designable 30
product

No of responses
40
35
30
25
20
15
10
5 No of responses
0

Interpretation

The above Chart it clearly shows that the 40% To Introduce Scheme chart
20% Visit to regular 10 % Modification In any Products and 30 % Develop
designable product

59
CHAPTER 5:- SCOPE & LIMITATIONS OF PROJECT

60
RESEARCHER POINT OF VIEW SCOPE:-

 To learn more on the practical aspects of implementation of a

research project.
 To learn more on the practicality of the marketing concepts.
 To get more confidence by interacting with field personnel.
 To improve analytical thinking and ability of decision making.
 To gain knowledge of negotiation skill.

61
LIMITATION:-

As I was asked to carry on my vocational training I found the following limitations during my
training period. So I could not collect all information regarding my topic.

i) Shortage of time factor was one of the biggest constraints.

ii) Most stress was given on the primary data as it was difficult to collect
secondary data from the organization and distribution since it is difficult to
ascertain the authenticity of their statements.
iii) All the observation and recommendation will be made on the feedback
obtained from survey.

62
CHAPTER NO.6:- LEARNING OF THE PROJECT

63
LEARNING OF THE PROJECT:-

By the help of project I come to know about the channel of pidilite industries ltd.

Different type of channel, retailer perception towards Pidilite distributors i have studied.
Overall experience with company and work allotted was really good.

64
CHAPTER NO.7:-FINDING AND SUGGESTION

65
FINDINGS:-

1. I observed that only 60% of people know about Pidilite.

2. 99% of the retailers had good opinion towards the distributors.
3. Only 1% of the retailers had bad opinion therefore the distributors have to control
this aspect because the word of mouth plays a very important role and they should try
to make their relationship 100%.
4. The frequency of visit made by the distributor in the market. This chart shows that to
47% of the outlets surveyed the visit was on alternative days, 46% of the outlets
surveyed the visit was on daily basis and 7% of the outlets surveyed the visits are
made once a week. This shows that the company is mostly following the Alternative
and daily routes.
5. A huge demand for Pidilite Products in Pune city and therefore 61% of the retailers
are expecting daily visits from the distributors in order to meet the demand from the
consumers, therefore the company has to look to this aspect seriously.
6. 36% expect an alternative days visits instead of daily visits, the outlets which are non
potential outlets expect the distributor to visit once a week.
7. The Distributors in Pune 40% is the Highly Satisfied Distributor, 35% Moderately
Satisfied Distributors and 25% Distributors are less satisfied.
8. Preference for Channels of Distribution that Retailers look for Pidilite product is
“Level One”. As we can see 60% of respondents agree with “Level One”. Hence,
preference for Channels of Distribution that Retailers look for Pidilite product is
“Level One”.
9. Most of the respondents say that the customer demand is fevicol and fevistick in a
shop.
10. The acrylic colour demand as compare of two company 55% Pidilite company and 40
camel company and other 5% demand in a Pune market
11. 70% respondents said they receive delivery on time and 30% respondents are self of
delivery is delay
12. The reviews of the clients regarding the Pidilite products. The good thing about the
products is 85% clients are satisfied.
13. 40% Respondents suggested to Introduce Scheme chart 20% Visit to regular 10 %
Modification In any Products and 30 % Develop designable product

66
SUGGESTIONS:-

1. The company must have a super stockiest in Pune city so that this can not only the
need of the Pune market but also the surroundings places.
2. The transportation department should concentrate on its faster delivery of products.
3. Company has to promote Pidilite as company while promotion as of Pidilite is Low
4. Most of the customer are demanding daily visit so distributor should focus on daily
delivery.
5. Distributor should have focus on profit margin as per customer demand.

67
CONCLUSION:-

Distribution Channel plays a very important role especially with respect to the Pidilite
industry because if the product is not available on time the consumers will switch on to other
brands and the company will lose its market share and hence an effective distribution channel
is the need of this industry.

The distribution channel of Pidilite Industries is effective

68
CHAPTER NO. 8:-ANNEXURE

69
BIBLIOGRAPHY:-

www.google.com

www.Pidilite.com

www.wikipwdia.com

BOOKS:-

1) Naresh K. Malhotra, Marketing Research, (2016), 7th edition ,Pearson India

2) Philip Kotler and Kevin Keller, Marketing Management, (2014), 15th Edition,
by Pearson

70
QUESTIONNAIRE:-

1) Do you know about Pidilite as a company?

a) Yes
b) No
2) Which Pidilite product do you sell in your store?
a) Fevicol
b) Fevistick
c) Fevigum
d) Acrylic Colour
e) Rangeela
3) How is the relationship with the distributor?
a) Good
b) Bad
4) How many times the distributor visits outlets per week.
a) Once
b) Alternative
c) Daily
5) How many times he is expected to visit.
a) Once
b) Alternative
c) Daily
6) Are you satisfied with the profit margins they are getting?
a. Highly Satisfied
b. Moderately Satisfied
c. Less Satisfied
7) Which type of delivery channel you would prefer?
a) 0 level
b) 1 level
c) 2 level
d) 3 level

71
8) When a customer comes to in your shop which brand does he/she demand.
a) Fevicol
b) Fevistick
c) Acrylic colour
d) Rangeela
e) Other
9) Which company‟s acrylic colour demand most?
a) Pidilite
b) Camel
c) Other

10) Do you receive the delivery of Pidilite products in time?

a) Yes
b) No
11) How much are you satisfied with the Pidilite products?
a) Filly satisfied
b) Partially satisfied
c) a or b
d) None of the above

12) Any suggestion for improving stock for high sales?

a) To introduce scheme chart
b) Visit to regular
c) Modification in any Product
d) Develop designable product

72