A PROJECT REPORT ON

EFFECTIVENESS OF DISTRIBUTION CHANNEL OF APCHEM HERBAL

SUBMITTED IN PARTIAL FULFILMENT FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (BBA)

SUBMITTED BY MR. MILAN BABUBHAI GHADIYA ROLL NO.:-18

PROJECT GUIDE MR. HORMAZ D. PATEL

THE SURAT PEOPLES CO.OP.BANK COLLEGE OF BUSINESS ADMINISTRATION, UDHNA,

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SURAT 2010-11

DECLARATION

I, Ghadiya Milan B., the undersigned, here by, declare that this dissertation titled Effectiveness of Distribution channel of APCHEM HERBAL is an original and bonafide work carried out under the guidance of Mr. Hormaz D. Patel, Lecturer, The Surat Peoples Co-Op. Bank College of Business Administration, Udhna, Surat. The empirical findings in this report are based on the data collected and have not been taken from any other report. This dissertation does not form any basis for other degree or diploma programme.

__________________________ Mr. Milan B.Ghadiya Roll No.:- 18 Date : _________________ Place : _________________

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Fax No. : (0261) 2277739 2277739, 2273542

E-Mail : spbcba@gmail.com

0261-2270825,

The Surat Peoples Co.op.Bank College of Business Administration

(SELF FINANCED)

(Managed by Udhna Academy Education Trust)

214, Ranchhod Nagar, Opp. Swaminarayan Temple, Surat-Navsari Road, Udhna ,Surat-394 210.

CERTIFICATE

This is to certify that Mr. Milan Babubhai Ghadiya has prepared the Project Report entitled Effectiveness of distribution channel of APCHEM HERBAL under my guidance & supervision. This project embodies the result of his work & is of the standard expected of a candidate for the successful completion of Bachelor of Business Administration Degree.

Date : _________________ Place: _________________

_____________________ Faculty Guide Mr.Hormaz D. Patel

_______________________ Vice Principal Mrs. Daisy Sheby Thekkanal

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ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without the mention of the leaders, whose constant guidance and encouragement crown all the efforts with success. I am highly obliged to the Veer Narmad South Gujarat University for arranging the programme of practical training in Bachelor of Business Administration in such a manner.

I would like to extend my gratitude to all the staff and especially to Mr.Prakash Shah of APCHEM HERBAL, who provided me useful information and data regarding the subject with their cent percent participation and supported in making this project report a successful task. It was a memorable experience to work with them and complete my winter training. It is my privilege to express my deep sense of gratitude to Mr. HORMAZ
D. PATEL for his efforts, guidance, valuable comments and suggestions

for making this project report. He helped me to complete my report on the practical study and gave contribution to improve and expand my practical knowledge. Finally, I express my intense gratitude to my parents whose blessings has helped me to translate my efforts into fruitful achievement.

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INDEX SR NO. I II III IV V VI 1 2 3 4 5 6 7 8 DECLARATION ACKNOWLEDGEMENT CERTIFICATE-I CERTIFICATE-II EXECUTIVE SUMMARY INDEX Industry Profile Company profile Conceptual fremwork Theoretical Concept Research Methodology Analysis and Interpretation of the Data Findings & Conclusions Recommendation Bibliography Annexure TOPIC PAGE NO. i ii iii iv v vii

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Introduction Of Industry

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Ayurveda emphasizes prevention of disease, rejuvenation of our body systems, and extension of life span. The profound premise and promise of Ayurveda is that through certain practices, not only can we prevent heart disease and make our headaches go away, but we can also better understand ourselves and the world around us, live a long healthy life in balance and harmony, achieve our fullest potential, and express our true inner nature on a daily basis. Ayurveda provides an integrated approach to preventing and treating illness through lifestyle interventions and natural therapies. It is based on the view that the elements, forces, and principles that comprise all of nature - and that holds it together and make it function - are also seen in human beings. In Ayurveda, the mind (or consciousness) and the body (or physical mass) not only influence each other - they are each other. Together they form the mind-body. The universal consciousness is an intelligent, aware ocean of energy that gives rise to the physical world we perceive through our five senses. Ayurvedic philosophy and practices link us to every aspect of ourselves and remind us that we are in union with every aspect of nature, each other, and the entire universe. There can be no mental health without physical health, and vice versa. In Ayurveda, symptoms and diseases that could be categorized as mental thoughts or feelings are just as important as symptoms and diseases of the physical body. Both are due to imbalances within a person, and both are treated by restoring the natural balance mentally and physically. In Ayurveda your whole life and lifestyle must be in harmony before you can enjoy true well being. Lifestyle interventions are a major Ayurvedic preventive and therapeutic approach. In India, Ayurvedic practitioners receive state-recognized, institutionalized training in parallel to their physician counterparts. The research base is growing

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concerning the physiological effects of meditative techniques and yoga postures in Indian medical literature and Western psychological literature. Published studies have documented reductions in cardiovascular disease risk factors, including blood pressure, cholesterol, and reaction to stress, in individuals who practice Ayurvedic methods.

Laboratory and clinical studies on Ayurvedic herbal preparations and other therapies have shown them to have a range of potentially beneficial effects for preventing and treating certain cancers, treating infectious disease, treating diabetes, promoting health, and treating aging. Mechanisms underlying these effects may include free.

1.2 THE AYURVEDIC MEDICINE INDUSTRY IN INDIA

By Subhuti Dharmananda, Ph.D., Director, Institute for Traditional Medicine, Portland, Oregon. Ayurvedic medicines are produced by several thousand companies in India, but most of them are quite small, including numerous neighbourhood pharmacies that compound ingredients to make their own remedies. It is estimated that the total value of products from the entire Ayurvedic production in India is on the order of one billion dollars (U.S.). The industry has been dominated by less than a dozen major companies for decades, joined recently by a few others that have followed their lead, so that there are today 30 companies doing a million dollars or more per year in business to meet the growing demand for Ayurvedic
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medicine. The products of these companies are included within the broad category of "fast moving consumer goods" (FMCG; which mainly involves foods, beverages, toiletries, cigarettes, etc.). Most of the larger Ayurvedic medicine suppliers provide materials other than Ayurvedic internal medicines, particularly in the areas of foods and toiletries (soap, toothpaste, shampoo, etc.), where there may be some overlap with Ayurveda, such as having traditional herbal ingredients in the composition of toiletries.

The key suppliers in Ayurveda are Dabur, Baidyanath, and Zandu, which together have about 85% of India's domestic market. These and a handful of other companies are mentioned repeatedly by various writers about the Ayurvedic business in India; a brief description is provided for them, arranged here from oldest to newest:

Ayurvedic Medicines Ayurveda is one of the age-old systems of medicine in the whole universe that derives its origin from Indian subcontinent. Slowly and gradually, this form of alternative medication is moving towards other developed countries of the world as well. Globally, ayurvedic medicines have been acclaimed as the safe form of naturopathy treatment because of their complete preventive characteristics and low side effects.
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Ayurveda is a science-based system of curing disorders and physical conditions with the help of natural therapies and believes on the basic tenet of biologic individuality. Also, many Ayurvedic formulations may be used to prepare products such as antidandruff shampoo, skin care creams, herbal soaps, anti dandruff oil etc. Presently, the worldwide market for herbal and Ayurvedic medicines is around US$120 billion. The European Union, Japan and USA together accounts for a total share of 70 percent while Asian countries contribute around 30%. The Ayurveda and its products are gaining worldwide popularity. Ayurvedic medicines available in the global market these days are made from herbal ingredients are clinically proven that can cure several acute and chronic disorders such as pimples, acne, allergies, arthritis, asthma, depression, constipation, heart ailments, ulcers, insomnia, obesity, blood pressure, liver related diseases etc. The key suppliers in Ayurveda are Dabur Baidyanath, and Zandu, which together have about 85% of India's domestic market. These and a handful of other companies are mentioned repeatedly by various writers about the Ayurvedic business in India; a brief description is provided for them, arranged here from oldest to newest:

Dabur India Ltd. is India's largest Ayurvedic medicine supplier and the fourth largest producer of FMCG. It was established in 1884, and had grown to a business level in 2003 of about 650 million dollars per year, though only a fraction of that is involved with Ayurvedic medicine. Last year, about 15% of sales volume was pharmaceuticals, the remaining 85% were mostly non-medicine items such as foods and cosmetics. Dabur's Ayurvedic Specialities Division has over 260 medicines for treating a range of ailments and body conditions-from common cold to chronic paralysis. These materials constitute only 7% of Dabur's total revenue (thus,

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less than 50 million dollars). Dabur Chyawanprash (herbal honey) has a market share of 70% and chewable Hajmola Digestive Tablets has an 88% share. Other major products are Amla Hair Oil, Vatika (Shampoo), and Lal Dant Manjan (Tooth Powder).

Sri Baidyanath Ayurvedic Bhawan Ltd. (Baidyanath for short) was founded in 1917 in Calcutta, and specializes in Ayurvedic medicines, though it has recently expanded into the FMCG sector with cosmetic and hair care products; one of its international products is Shikakai (soap pod) Shampoo. Baidyanath has a sales volume of about 350 million dollars, 700 Ayurvedic products, made at 10 manufacturing centers, with 1,600 employees. Included items are herbal teas, patent medicines, massage oils, and chyawanprash.

Zandu Pharmaceutical Works was incorporated in Bombay in 1919, named after an 18th-century Ayurvedic. The company focuses primarily on Ayurvedic products (in 1930, pharmaceuticals were added, but the pharmaceutical division was separated off about 30 years later). However, today Zandu has a chemicals division and cosmetics division. Its total sales volume is about 45 million dollars. One of its current projects is to develop a dopamine drug from a plant extract, applying for new drug status in the U.S.

The Himalaya Drug Company was established in 1934 in Bangalore. It currently has a business level of about 500 million dollars and has a U.S. distribution division (Himalaya USA). It is known in

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the U.S. for the product Liv-52, marketed as a liver protector and therapy for liver diseases like viral hepatitis; the product was first marketed in India in 1955.

Vicco Laboratories was established in 1958. It mainly produces topical therapies based on Ayurveda and is best known internationally for its toothpaste product, Vajradanti, which has been marketed in the U.S. for more than 25 years.

The Emami Group, founded in 1974, provides a diverse range of products, doing 110 million dollars of business annually, though only a portion is involved with Ayurvedic products, through its Himani line; the company is mainly involved with toiletries and cosmetics, but also provides Chyawanprash and other health products.

Viswakeerthy Ayurvedic Pharmacy was founded by Dr. K. Mohammadkutty a great friend of Nature and Ayurveda. Started in 1977, as a fledgling pharmacy, Viswakeerthy today is one of the largest manufacturers of Ayurvedic Medicines with a formidable presence all over Kerala. The dynamic leadership of Dr. K. M. Kutty, complemented by the energetic drive of his team of young enthusiastic professionals has taken Viswakeerthy Ayurvedic Pharmacy to new heights. The philosophy behind
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the inception was to "Serve Humanity through Ayurveda-The Authentic Way" by propagating and practicing genuine Ayurveda and producing quality Ayurvedic medicines. Today, this philosophy has taken Viswakeerthy to new heights of Ayurvedic excellence. Realizing the importance of standardization of medicines and the modernization of production, Viswakeerthy took the significant step of updating the technology of the existing pharmacy and establishing a sophisticated private limited company, Viswakeerthy Herbals Pvt. Ltd. at Kalpakanchery, Malappuram District of Kerala.

Company Profile
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2.1 INTRODUCTION

OF COMPANY:

Ayurved is the science of life based on vat, pitta & kufa Health is the god gift it is natural to be Healthy because we are part of Nature. Ayurved still holds predominant Position in Medical and Health care Programmed in the World. Apchem herbals Has Taken up the Challenge to fill the gap in the current health care needs by tapping into the rich ancient knowledge based of Ayurveda. Vision of the company is to develop effective affordable drugs for Uncurable diseases.company starting Hospitals in future for Uncurable diseases. Apchem herbals Passion Drive has Resulted in Remarkable success in inventing Drugs for psoriasis , Eczema , Arthritis ,Leucorrhoea & Apart from common cold & Asthma. Continuous dedications to Reasearch Apchem Herbals is Constantly innovating effective drugs for skin care ,child care& other Specialist Segments.

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2.2 HISTORY: Glorious history of innovations

YEAR 2005

INNOVATIONS Founded by the visionary, Mr.Anilbhai Vasane in 2001, Apchem Herbals set off on its glorious journey by establishing a small unit at Hyderabad.

2006

Apchem Herbals spread its wings into the mainstream of the Ayurvedic market by launching divisions to cater to the needs of People.

2007

Apchem Herbals ventured into the North India and established new market at States like Jammu &Kashmir, Delhi, Punjab, and Uttar Pradesh.

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2008

Apchem Herbals spread its wings into the mainstream of the Ayurvedic market & Establish market in Gujarat.

2009

Apchem Herbals Establish market in Madhya Pradesh.

2.3 Apchem Herbal bags Pharmaceutical Award for holding 19 Herbal patents.

Apchem Herbal Extracts & Formulations Company bags Pharmexcil Award in Patents Category for holding many patents in natural, herbal and biotech products. The Awards were presented by Shri K. Rosaiah, Honorable Chief Minister of Government of Andhra Pradesh today during Parma CEOs Conclave being held at Hyderabad International Convention Centre, Novotel & HICC Complex. Mr. R. Rajendran Promoter of the company received the award.

Apchem Herbal has 19 patents filed on various herbal products and 9 of them were already granted. Pharmexcil has awarded Apchem Herbal a National Award in September 2009 for holding many Herbal patents. This award was given by Shri Anand Sharma, Honble Minister for Commerce & Industry, Govt. of India. Green Chem has been selected by AYUSH dept of Government of India for developing Specifications (monographs) for Herbal extracts. Apchem Herbal is certified for ISO 22000:2005 for high level Food Safety.

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Commenting on receiving the award Mr. R. Rajendran the founder of the Apchem Herbal said I am happy to see the growing intensity of awareness of Patents in India. Like we all take care of our property, taking care of intellectual property is also essential. Innovating a new roduct or a new process or a new use takes lot of energy, time, and money. After investing on this, the end result has to be safe guarded. This is what Indian Government is identifying now and giving us the security. This gives me lot of confidence in commercializing my products to customers. The customers who are formulating to finished products are confident when we give them the exclusive Patent rights for their selling to consumers. Patent protection and recognition encourages the brains to innovate new products, new concepts. This will induce the growth in every aspect. Indian brain is challengingly strong and the Indian innovations will dominate the globe with a strong impact.

Apchem Herbal deals in natural/herbal and biotech products. Its activities include Organic Cultivation, Extraction, Elaborate testing, Quality assurance, Patenting. It is a certified 100% Export Oriented Unit. It has a capacity of extracting about 1500tons of herbs per year. The manufacturing is done as per Validated Standard Operating Procedures as per USFDA and TGA guidelines.

Apchem Herbal exports its products to USA, Australia, Singapore, Mexico, Brazil, Austria, Germany, France and Hong Kong .The products are clinically certified in abroad by the experts in the medical field like Dr.Ron Lawrence of Western Geriatric Research Institute, Los Angeles, California, USA and Harry G. Preuss, M.D., M.A.C.N., C.N.S., Professor of Physiology, Medicine and Pathology, Georgetown University Medical Center, Washington, D.C. 20057. Animal studies are done in India by KLEs college of Pharmacy, Bombay College of Pharmacy, St Johns Medical College and 20 other institutes.

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The Toxicity studies are done by Bombay College of Pharmacy, INTOX Pune and few other Institutes. Apchem Herbal R&D concentrates and constantly works on the development of new products as well as improving the existing products. Green Chem manufactures herbal ingredients for : Anti Obesity, Anti Diabetic, Anti Cholesterol, Anti Arthritic, Female Libido enhancer, Male Libido Enhancer, Cosmetics, Post menopausal syndrome, Memory power enhancer, Nutraceutical supplements of Organic vitamins, minerals etc.

Conceptual Background

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2.4 Theoretical Background:

A) Distribution channel Distribution (or place) is one of the four elements of marketing mix. An organization or set of organizations (go-betweens) involved in the process of making a product or service available for use or consumption by a consumer or business user. The other three parts of the marketing mix are product, pricing, and promotion. B) The distribution channel Frequently there may be a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user. C) Channels A number of alternate 'channels' of distribution may be available:

Selling direct, such as with an outbound sales force or via mail order, Internet and telephone sales

Agent, who typically sells direct on behalf of the producer

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Distributor (also called wholesaler), who sells to retailers Retailer (also called dealer or reseller), who sells to end customers

16

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Distribution channels may not be restricted to physical products alone. They may be just as important for moving a service from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services - the latter offering anything from televisions through tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas. D) Channel members Distribution channels can thus have a number of levels. Kotler defined the simplest level that of a direct contact with no intermediaries involved, as the 'zero-level' channel. The next level, the 'one-level' channel, features just one intermediary; in consumer goods a retailer, for industrial goods a distributor. In small markets (such as small countries) it is practical to reach the whole market using just one- and zero-level channels. In large markets (such as larger countries) a second level; a wholesaler for example, is now mainly used to extend distribution to the large number of small, neighborhood retailers or dealers. In Japan the chain of distribution is often complex and further levels are used, even for the simplest of consumer goods.

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In Bangladesh Telecom Operators are using different Chains of Distribution, especially 'second level'. In IT and Telecom industry levels are named "tiers". A one tier channel means that vendors IT product manufacturers (or software publishers) work directly with the dealers. A one tier / two tier channel means that vendors work directly with dealers and with distributors who sell to dealers. But the most important is the distributor or wholesaler. E) The internal market Many of the marketing principles and techniques which are applied to the external customers of an organization can be just as effectively applied to each subsidiary's, or each departments, 'internal' customers. In some parts of certain organizations this may in fact be formalized, as goods are transferred between separate parts of the organization at a `transfer price'. To all intents and purposes, with the possible exception of the pricing mechanism itself, this process can and should be viewed as a normal buyer-seller relationship. The fact that this is a captive market, resulting in a `monopoly price', should not discourage the participants from employing marketing techniques. Less obvious, but just as practical, is the use of `marketing' by service and administrative departments; to optimize their contribution to their `customers' (the rest of the organization in general, and those parts of it which deal directly with them in particular). In all of this, the lessons of the non-profit organizations, in dealing with their clients, offer a very useful parallel.

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F) Channel motivation It is difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or a competition is offered to the distributors' sales personnel, so that they are tempted to push the product. Dent defines this incentive as a Channel Value Proposition or business case, with which the supplier sells the channel member on the commercial merits of doing business together. He describes this as selling business models not products.

G) Monitoring and managing channels In much the same way that the organization's own sales and distribution activities need to be monitored and managed, so will those of the distribution chain. In practice, many organizations use a mix of different channels; in particular, they may complement a direct sales force, calling on the larger accounts, with agents, covering the smaller customers and prospects.

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Research Methodology

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4.1 Problem Identification

A) Concept of problem:
The first step in research is formulating a research problem. It is most important stage in applied research as poorly defined problems will not yield useful results. It is rightly said that a problem is the half-solved. It is difficult to lay down any concise prescription for recognizing problem. A person with an inquisive nature and the necessary background would recognize a problem or an opportunity in less time than another who lacks these qualities. Once the researcher has identified two or more than two problems or opportunity, the next question he should be concerned with iswhich of the problem is to be selected? A research problem, in general, refers to some difficulty which a researcher experiences in the context of either a theoretical or practical situation and wants to obtain a solution for the same. We can, state the components of the research problem as under: We can, state the components of the research problem as under: Some retailer apchem herble product of are not satisfied. Some retailer believe that price of companys product is very high. Some retailer believe that delivery period of product is very long.

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B) Scope of study:
For the study we are going to approach marketing, sales department & retail medical stores etc. I have selected the subject entitle Effectiveness of distribution channel (wholesaler to retailer to customer) of Apchem Herbals Pharmaceuticals Pvt. Ltd. And my scope is limited only to the Surat city and has not considered the entire Surat city due to the time limitation of two months. For the study we are going to approach marketing, sales department & retail medical stores etc.

C) Objective of study I have selected the particular topic Effectiveness of distribution channel of Apchem Herbals Company in order to study the satisfaction of retail medical stores towards efficiency of distribution channel. On the basis of this study the Apchem Herbals company comes to know about the fulfillment of retail medical stores towards distribution channel and can also know which type of facilities expect from them and what retail stores feel about Apchem Herbals company.

Objectives: To know the timely availability of the products of company. To know the unnecessary transportation cost. To know the satisfaction by the channel of distribution.

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D) Significance of study: To control on unnecessary cost in transportation. To improve transport facilities. To provide products on timely.

4.2 Research Methodology

A) Meaning of Research:Research in common parlance refers to a search for knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. The advanced learners dictionary of Current English lays down thy meaning of the research as: A careful investigation or inquiry especially through search for new facts in any branch of knowledge Redman and Mory define the research as A systematized effort to gain new knowledge Research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing, evaluating date; making deductions and researching conclusions.

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B) Marketing Research:Marketing Research is the function which links the consumer, customer and the public to the marketer through informationinformation used to identify and define the marketing opportunities and problems; generate, refine and evaluate marketing actions; monitor marketing performance; and improve understanding of market as a process. Marketing research specifies the information required to address these issues; designs the method for collecting information; manages and implements the data collection process; analyses the results; and communicates the findings and their implications. My marketing Research is on Brand awareness. However, there are also some limitations of marketing research like it is not exact science and is too faulty and superficial in industry.

C) The Research Process

The Marketing research process involves a number of interrelated activities which dont rigidly follow a particular sequence. Followings are the various steps in the research methodology process:

[1] Formulating the research problem. [2] Choice of research design. [3] Determining sources of data. [4] Designing data collection forms. [5] Determining sampling design and sampling size.

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[6] Organizing and conducting the field survey. [7] Processing and analyzing the collected data. [8] Preparing the research report.

D) Research Design:Research design is the plan, structure and strategy of investigation conceived so as to obtain answers to research questions and to control variance. The definition consists of three important termsplan, structure and strategy. The plan is an outline of the research but structure of the research is a more specific outline and the strategy shows how the research will be carried out.

E) Types of Research Design:[1] Exploratory Research:In the case of exploratory research, the focus is on the discovery of ideas. In a business where sales have been declining for the past few months, the management may conduct exploratory research to find the most likely cause. An exploratory study is generally based on the secondary data that are readily available since the objective of the research is to generate new ideas, respondents should be given sufficient freedom to express themselves.

[2] Descriptive studies:Descriptive studies are undertaken in many circumstances. When the researcher is interested in knowing the characteristics of certain groups such as age, sex, occupation then a descriptive study may be necessary in other use, when researcher is interested
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in knowing the proportion of the people in a given population who have behaved in a particular manner. The descriptive studies are factual and very simple. It is also well structured. Descriptive studies can be divided into two categoriescross sectional and longitudinal. Cross sectional study is concerned with a sample of elements i.e. field studies and surveys while longitudinal studies are based on panel data and panel methods which is a sample of respondents who are reinterviewed from time to time.

[3] Causal Designs:A causal design investigates the cause and effect relationship between two or more variables. The design of causal research is based on reasoning along well tested lines. The method of agreement and the method of differences are use in causal research formulated by john mill.

F) Types of Data Collection:There are mainly two types of data collection method:

[1] Primary data:Data which are collected at first hand is primary data for collecting primary data, There are four methods i.e. observation method, laboratory experiment method, field experiment method and survey method. From that I select survey method. For survey, Questionnaire is necessary which consists the various questions relating with the research. The questionnaire should be designed well so the study become easy. Questionnaire survey can be done through personal interview, telephonic interview and mail questionnaire method.

[2] Secondary data:5 6

Any data which have been gathered earlier for some other purpose are secondary data in the hands of the data in the hands of the marketing researcher. Thus, primary data collected by one person may become the secondary data for another. Secondary data saves the time, cost and resources of the researcher. But secondary data should not be outdated. The sources of the secondary data are accounting records, sales force reports, internal experts, other responds of company and government publications, nonegovernment and organizations publications etc.

G) Sampling Plan & Method:1) Sampling unit:The target population is every one in the population has equal chance of sampling. The survey was conducted Surat city in varachha, katargam and punagam.

2) Sampling Method:It indicates how the sample units are selected. Here I have selected retail medical stores to know effectiveness of distribution channel and I have to do survey on the retail medical stores By Using simple random sampling method . I have select the Retail stores randomly. 3) Sampling size:250 samples.

H) Types of Sampling:Non-Probability Sampling

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Data Analysis

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1)

Do you sale Apchem Herbals product?

Table No.: 1

Answers Respondent

Yes 226

No 24

Total 250

No. of Retailer selling Product

Above chart indicates that majority of respondents are selling Apchem Herbals products i.e 226 and 24 respondents out 250 are not selling Apchem Herbals products.

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2) Please rate the following features of Apchem herbal product?

(Rating from 1 to 5, where 1 is Strongly Dissatisfied and 5 is Strongly satisfied) No. Parameter 1 08 12 06 2 12 APCHEM HERBAL PRODUCT 2 3 4 14 30 62 19 37 60 12 30 71 06 16 19 26 53 49 5 112 98 107 146 123

1 2 3 4 5

Price Quality Availability of H.P Credit facility Delivery time

WEIGHT AVERAGE METHOD

Price:-

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1 2 3 4 5 Total

Fi 08 14 30 62 112 Fi=226

FiXi 08 28 90 248 560 FiXi=934

WAM = = (1*08) + (2*14) + (3*30) + (4*62) + (5*112) 226

934 226
WAM = 4.13

INTERPRITATION:The above table & diagram shows that 50% respondents opinion about price of Apchem product are very good,27% opinion are good,13% opinion are Average,06% opinion are poor, and 04%respondants opinion are very poor. Fi 12 19 37 60 98 Fi=226 FiXi 12 38 111 240 490 FiXi=891 Quality:

1 2 3 4 5 Total

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WAM = = (1*12) + (2*19) + (3*37) + (4*60) + (5*98) 226

891 226
WAM = 3.94

INTERPRITATION:The above table & diagram shows that 43% respondents opinion about Quality of Apchem product are very good,27% opinion are good,16% opinion are Average,09% opinion are poor, and 05%respondants opinion are very poor. Availability of H.P: Fi 06 12 30 71 107 Fi=226 FiXi 06 24 60 284 535 FiXi=909

1 2 3 4 5 Total

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WAM = = (1*06) + (2*12) + (3*30) + (4*71) + (5*107) 226

909 226
WAM = 4.02

INTERPRITATION:The above table & diagram shows that 47% respondents opinion about Availability of Apchem product are very good,32% opinion are good,13% opinion are Average,05% opinion are poor, and 03%respondants opinion are very poor. Fi 1 02 2 06 3 19 4 53 5 146 Total Fi=226 FiXi 02 12 57 212 730 FiXi=1013

Credit facility:

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WAM = = (1*02) + (2*06) + (3*19) + (4*53) + (5*146) 226

1013 226
WAM = 4.48

INTERPRITATION:The above table & diagram shows that 65% respondents opinion about credit Facility of Apchem product are very good,23% opinion are good,08% opinion are Average,03% opinion are poor, and 01%respondants opinion are very poor.

Fi 1 12 2 16 3 26 4 49 5 123 Total Fi=226

FiXi 12 32 78 196 615 FiXi=933

Delivery time:

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WAM = = (1*12) + (2*16) + (3*26) + (4*49) + (5*123) 226

933 226
WAM = 4.13

INTERPRITATION:The above table & diagram shows that 54% respondents opinion about Delivery time of Apchem product are very good,22% opinion are good,12% opinion are Average,07% opinion are poor, and 05%respondants opinion are very poor.

3] Through which source do you order Apchem Herbals product?

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Table no.2 Answers Respondent Through salesmen 210 Direct from wholesaler 16 Total 226

Source of Order Product

INTERPRITATION:Above chart shows that 210 respondents out of 226 order the product through sales men.

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4] When retailers order for Apchem Herbals products? Table no.3

Reasons for demand Demand is more Limited stock In promotion facilities Shortage will market Total Respondent 6 142 42 36 226

Reason for Ordering Product

INTERPRITATION:Above chart indicates that majority of retailer order Apchem Herbals products i.e.62.83 % when its stock is limited in retail shop and least of retailers order Apchem Herbals products i.e. 2.65%when its demand is more.
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5) Rate the following product will be affect in compare to another.

(Rating

from 4 to 1, where 4 is Excellent and 1 is Poor) PRODUCT 4 IMPACT 3 2 79 76 84 69 73 32 40 26 31 22

No. 1 2 3 4 5

1 20 19 14 17 13

Hemal Syr Cold-plus Syr Victopol Syr Sudin-plus Syr Monkol-D

95 91 10 2 10 9 11 8

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Hemal Syr: Fi 1 20 2 32 3 79 4 95 Total Fi=226 FiXi 20 64 237 380 FiXi=701

WAM = = (1*20) + (2*32) + (3*79) + (4*95) 226

701 226

INTERPRITATION:The above table & diagram shows that 42% respondents opinion about Hemal Syr of Apchem product are Exellent,35% opinion are good,14% opinion are Average,09% opinion are poor.

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Cold-plus Syr : Fi 1 19 2 40 3 76 4 91 Total Fi=226 FiXi 19 80 228 364 FiXi=691

WAM = = (1*19) + (2*40) + (3*76) + (4*91) 226

691 226
WAM = 3.10

INTERPRITATION:The above table & diagram shows that 40% respondents opinion about Cold-plus Syr of Apchem product are Exellent,34% opinion are good,18% opinion are Average, 08% opinion are poor

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Victopol Syr : Fi 1 14 2 26 3 84 4 102 Total Fi=226 FiXi 14 52 252 408 FiXi=726

WAM = = (1*14) + (2*26) + (3*84) + (4*102) 226

726 226
WAM = 3.21

INTERPRITATION:-

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The above table & diagram shows that 45% respondents opinion about Victopol Syr of Apchem product are Exellent,37% opinion are good,12% opinion are Average, 06% opinion are poor.

Sudin-plus Syr : Fi 1 17 2 31 3 69 4 109 Total Fi=226 FiXi 17 62 207 436 FiXi=722

WAM = = (1*17) + (2*31) + (3*69) + (4*109) 226

722 226
WAM = 3.19

INTERPRITATION:5 6

The above table & diagram shows that 48% respondents opinion about Sudin-plus Syr of Apchem product are Exellent,31% opinion are good,14% opinion are Average, 07% opinion are poor.

Monkol-D Syr : Fi 1 13 2 22 3 73 4 118 Total Fi=226 FiXi 13 44 219 472 FiXi=748

WAM = = (1*13) + (2*22) + (3*73) + (4*118) 226

748 226
WAM = 3.30

INTERPRITATION:-

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The above table & diagram shows that 52% respondents opinion about Monkol-D Syr of Apchem product are Exellent,32% opinion are good,10% opinion are Average, 06% opinion are poor

6] How many times retailers order for Apchem Herbals products in a Month?

Product order in a month

Answer 2 times 4 times 5 times Daily Total

Respondent 92 116 18 0 226

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INTERPRITATION:Above chart shows that 208 respondents out of 226 think that Apchem Herbals Company delivered the goods timely& cheapest for them.

7] Which way of getting order delivery is cheapest for you ?

Table No.7

Answers Respondent

Delivered by Apchem Herbals 208

Self service 18

Total 226

Cheapest way of Getting Order

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INTERPRITATION:Above chart shows that 208 respondents out of 226 think that Apchem Herbals Company delivered the goods timely& cheapest for them.

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8] Retailers get the delivery of goods timely or not?

Table No.7 Retailers Respondent Yes 198 No 28 Total 226

Timely Delivery of product

INTERPRITATION:Above chart shows that Apchem Herbals Company provides products timely. 198 respondents out of 226 think that Apchem Herbals Company delivered the goods timely.

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9] When retailers get Apchem Herbals products?

Table No.9 Answer On ordered day After 1 day After 2 days Total Respondents 59 136 31 226

After how many day product is received

INTERPRITATION:Above chart indicates that 136 respondents out of 226 get Apchem Herbals products after 1 day, 59 respondents get on ordered day and 31 respondents get Apchem Herbals products after 2 days.

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10] Retailers can provide the Apchem Herbals products consumer or not?
Table No.10 Answers Respondent Yes 189 No 37

timely to

Total 226

Product received timely or not

INTERPRITATION:The 189 respondents out of 226 can provide Apchem Herbals products timely to their consumers.

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11] Retailers are satisfied with this distribution channel of Apchem Herbals Company or not?
Table No.11 Answers Respondent Yes 218 No 8 Total 226

Satisfaction of retailer

INTERPRITATION:This chart shows that 218 respondents out of 226 are satisfied with this distribution channel of Apchem Herbals Company.

12) Why are you not sales in Apchem herbal product?

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(Rating from 1 to 5, where 1 is Strongly Dissatisfied and 5 is Strongly satisfied)

No.

Parameter 1 17 15 19 18 16

APCHEM HERBAL PRODUCT 2 3 4 4 3 5 4 3 2 4 5 2 3 5 -

1 2 3 4 5

Price Quality Availability of H.P Credit facility Delivery time

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FINDINGS

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Findings
Majority of respondents are selling Apchem Herbals products i.e 226 and 24 respondents out 250 are not selling Apchem Herbals products. 210 respondents out of 226 order the product through sales men. Retailer order Apchem Herbals products i.e.62.83 % when its stock is limited in retail shop and least of retailers order Apchem Herbals products i.e. 2.65%when its demand is more. majority of respondent i.e 116 order Apchem Herbals products 4 times in a months and no one order Apchem Herbals products daily. Product delivered by Apchem Herbals by its own transportation facilities are not costlier for 208 respondent out of 226. 208 respondents out of 226 think that Apchem Herbals Company delivered the goods timely& cheapest for them. Apchem Herbals Company provides products timely. 198 respondents out of 226 think that Apchem Herbals Company delivered the goods timely. 136 respondents out of 226 get Apchem Herbals products after 1 day, 59 respondents get on ordered day and 31 respondents get Apchem Herbals products after 2 days. The 189 respondents out of 226 can provide Apchem Herbals products timely to their consumers. 218 respondents out of 226 are satisfied with this distribution channel of Apchem Herbals Company. 222 respondents out of 226 are satisfied with credit facilities and 4 respondents are not satisfied.
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Suggestion

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Suggestions
I think Company should take following actions to make more effective distribution channel.

Achem Herbals Company should increase the middleman or agent, so retailer can be continue in contact with company. If the consignment has been damaged then Achem Herbals Company should change it as soon as possible. Achem Herbals Company should provide promotional facilities to retailers. Company should create strong Product & Brand Awareness through advertisement. Try to remove the shortages in some product at some time. The price of some product should be economical.

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Reference Material

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Bibliography

Books 1. Marketing Management by Philip Kotler 2. Advance Marketing By L.M.Prasad

Web Sites -

1. www.google.com

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Appendices
QUESTIONNAIRE

NAME: AREA:

_____________________________________________ ________________

Education: __________________ AGE: Gender: _________________ ___________________

PHONE NO.:___________________________ NAME OF MEDICAL:______________________________________

1) Do you sale Apchem Herbals product?

[ ] Yes

[ ] No

2) Through which source do you order Apchem Herbals product ? [ ] Through salesmen [ ] Direct from wholesaler. 3) When do you order for Apchem Herbals products ? [ ] If demand of product is more . [ ] If stock of product is Limited in the store. [ ] When company provide promotion facility. [ ] When shortage of product occur in Market. 4) How many times do you order for Apchem Herbals product in a month? [ ] 2 Times [ ] 3 Times [ ] 4 Times [ ] Daily

5) Do you think that product delivered by Apchem Herbals by its own transportation facilities are costlier for you ? [ ] Yes [ ] No

6) Which way of getting order delivery is cheapest for you ? [ ] Delivered by Apchem Herbals [ ] Self service 7) If product delivered by Apchem Herbals,do you get delivery of product timely ?
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[ ] Yes

[ ] No

8) When do you get product ? [ ] On Ordered Day. [ ] After 1 day Of Order. [ ] After 2day Of Order. 9) Can you provide the product of Apchem Herbals timely to customer ? [ ] Yes [ ] No 10)Are you satisfied with this distribution channel of Apchem Herbals ? [ ] Yes [ ] No If yes, then through which facility you are satisfied ? ____________________________________________________ If no, then through which facility you are not satisfied ? ____________________________________________________ 11)Are you getting credit facility from Apchem Herbals ? [ ] Yes [ ] No 12)If yes,are you satisfied with the credit facility given by Apchem Herbals ? [ ] Yes [ ] No 13)According to you what should be improved by Apchem Herbals in their distribution channel ? ____________________________________________________ 14)Any suggestion for Apchem Herbals __________________________________________________ ___________________________________________________ Thank You

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