A STUDY ON

EFFECTIVENESS OF DISTRIBUTION CHANNEL OF ITC PRODUCTS

A PROJECT REPORT Submitted to the

SCHOOL OF MANAGEMENT

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

Of MASTER OF BUSINESS ADMINISTRATION By RUBAN.A

REG.NO.35080499

Under the guidance of

Ms.L.KANIMOZHI
(Assistant professor)

SRM SCHOOL OF MANAGEMENT SRM UNIVERSITY KATTANKULATHUR 603203 MAY 2010

BONAFIDE CERTIFICATE SRM UNIVERSITY

Certified that this project report titled EFFCETIVENESS OF DISTRIBUTION CHANNEL OF ITC PRODUCTS is the bonafide work of Mr. RUBAN.A who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not from part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Signature of the supervisor

Signature of the HOD

ACKNOWLEDGEMENT
It is difficult to acknowledge a precious debt as that of learning as it is the only debt that is difficult to repay except through gratitude. First and foremost I wish to express my profound gratitude to the almighty, the merciful & compassionate with whose grace & blessings I have been able to complete this work. It is my profound privilege to express my sincere thanks to the Dean Dr.JAYSHREE SURESH (School of Management), for giving me an opportunity to work on the project and giving me full support in completing this project. I am very thankful to my guide Ms. L. Kanimozhi (Assistant Professor in SRM University, Kattankulathur) for her full support and guidance in completing this project work. I am obliged to thank the entire management of ITC Pvt. Ltd, Coimbatore for granting me permission and assisting me throughout the project. Last but not least, I would like to thank my loving parents, my brother & my friends for their full cooperation & continuous support during the course of this assignment.

RUBAN.A REG.NO. 35080499, MBA (MARKETING & FINANCE), SCHOOL OF MANAGEMENT, SRM UNIVERSITY.

DECLARATION

I hereby declare that the dissertation titled EFFCETIVENESS OF DISTRIBUTION

CHANNEL OF ITC PRODUCTS submitted by me in fulfillment of the requirement of

M.B.A at School of Management under the guidance of Ms.L.KANIMOZHI, Faculty of School of Management, SRM University, Chennai during the period of 2008-2010. This is my original work and no part of it has been submitted earlier to SRM University or any other institutions.

Yours sincerely (RUBAN.A)

TABLE OF CONTENT

CHAPTER 1 2 3 4 5

PARTICIULARS INTRODUCTION STATEMENT OF THE PROBLEM OBJECTIVES AND SCOPE OF THE STUDY REVIEW OF LITERATURE METHODOLOGY AND LIMITATIONS OF THE STUDY COMPANY PROFILE DATA ANALYSIS AND INTERPRETATION FINDINGS SUGGESTIONS CONCLUSION ANNEXURE & BIBLIOGRAPHY

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LIST OF TABLES:

Table No.
1

Title of chart
SATISFACTION LEVEL OF RETAILERS TAWARDS THE SERVICE FREQUENCY OF THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE BILLS ALLOWED BY THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE CREDIT PERIOD ALLOWED BY THE COMPANIES SATISFACTION LEVEL OFRETAILERS TOWARDS THE DELIVERY TIME LINE OF THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS DELIVERY EFFICENCY OF THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS D&D REPLACEMENT OF THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE PROFIT MARGIN PROVIDED BY THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE CONSUMER PROMO OFFERED BY THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE SCHEME COMMUNICATION BY THE SALES PERSONS OF THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE SALESMENS APPROACH SATISFACTION LEVEL OF RETAILERS TOWARDS THE SALESMENABSENTEEISM SATISFACTION LEVEL OF RETAILERS TOWARDS RESPONSE FOR EMERGENCY ORDERS BY THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE FREQUENCY OF COMPANY PERSONS VISIT 23

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LIST OF CHARTS

Table No.
1

Title of chart
SATISFACTION LEVEL OF RETAILERS TAWARDS THE SERVICE FREQUENCY OF THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE BILLS ALLOWED BY THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE CREDIT PERIOD ALLOWED BY THE COMPANIES SATISFACTION LEVEL OFRETAILERS TOWARDS THE DELIVERY TIME LINE OF THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS DELIVERY EFFICENCY OF THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS D&D REPLACEMENT OF THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE PROFIT MARGIN PROVIDED BY THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE CONSUMER PROMO OFFERED BY THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE SCHEME COMMUNICATION BY THE SALES PERSONS OF THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE SALESMENS APPROACH SATISFACTION LEVEL OF RETAILERS TOWARDS THE SALESMENABSENTEEISM SATISFACTION LEVEL OF RETAILERS TOWARDS RESPONSE FOR EMERGENCY ORDERS BY THE COMPANIES SATISFACTION LEVEL OF RETAILERS TOWARDS THE FREQUENCY OF COMPANY PERSONS VISIT 24

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CHAPTER-I INTRODUCTION

CHAPTER-1

1.1 INTRODUCTION
A distribution channel is a chain of intermediaries; each passing a product down the chain, before it finally reaches the consumer. It bridges the gap between the producer and the consumer. Effective channels serve targeted market segments, maximize sales, minimize cost, and help producer companies gain a sustainable competitive advantage in delivering superior value to their customers. The channel partners (such as dealers, distributors, resellers) play a crucial role in the effective functioning of the channel. Their needs and goals may not always be aligned to those of the producers or the consumers. Channel managers--managers of the producer organization, responsible for distribution performance--need to design effective distribution channels and work in collaboration with the channel partners, taking any corrective actions based on periodic assessment and monitoring.

CHAPTER-II STATEMENT OF THE PROBLEM

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CHAPTER-2

STATEMENT OF THE PROBLEM

A Study on EFFECTIVENESS OF DISTRIBUTION CHANNEL OF ITC PRODUCTS with special reference to Coimbatore city.

11

CHAPTER-III OBJECTIVES OF THE STUDY

12

CHAPTER-3

OBJECTIVES OF THE STUDY

To review the existing Distribution channel. To identify the status, functions & contribution of intermediaries towards the companys success. To test statistically the relationship between the attributes expected & their actual performance. To identify the major distribution problems associated with ITC. To find out the ways of improving the effectiveness of distribution channel. To suggest the best possible Distribution channel.

SCOPE OF THE STUDY

The study made by the researcher helps to provide information relating to distribution channel effectiveness of ITC products. The conclusions and suggestions given by the researcher at the end of the study will be helpful for the organization in making the distribution channel more effective.

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CHAPTER-IV REVIEW OF LITERATURE

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CHAPTER-4

REVIEW OF LITERATURE

Distribution Channels The Nature of Distribution Channels Most producers use intermediaries to bring their products to market. They try to forge a distribution channel-a set of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumer or business user. Distribution Channel Functions A distribution channel moves goods form producers to consumers. It overcomes the major time, place, and possession gaps that separate goods and services from those who would use them. Members of the marketing channel perform many key functions. Some help to complete transactions: Information. Promotion. Contact: finding and communicating with prospective buyers. Matching: fitting the offer to the buyers needs, including such activities as manufacturing and packaging. Negotiation: reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred. Others help to fulfill the completed transactions: Transporting and storing goods. Financing. 15

 Risk taking: assuming the risks of carrying out the channel work. The question is not whether these functions need to be performed, but rather who is to perform them. All the functions have three things in common: They use up scarce resource, they often can be performed better through specialization, and they can be shifted among channel members. To the extent that the manufacturer performs these functions, its costs go up and its prices have to be higher. At the same time, when some of these functions are shifted to intermediaries, the producers costs and prices may be lower, but the intermediaries must charge more to cover the costs of their work. In dividing the work of channel, the various functions should be assigned to the channel members who can perform them most efficiently and effectively to provide satisfactory assortments of goods to target consumers.

Channel Management Decisions

Once the company has decided on the best channel design, it must implement and manage the chosen channel. Channel management calls for selecting and motivating individual channel members and evaluating their performance over time.

Selecting Channel Members

Producers vary in their ability to attract qualified marketing intermediaries. Some producers have no trouble signing up channel members. For example, Toyota had no trouble attracting new dealers for its Lexus line. In fact, it had to turn down many sellers. In some cases, the promise of exclusive or selective distribution for a desirable product will draw plenty of applicants. At the other extreme are producers who have to work hard to line up enough qualified intermediaries. When Polaroid started, for example, it could not get photography stores to carry its new cameras, and it had to go to mass-merchandising outlets. Similarly, small food producers often have difficulty getting supermarket chains to carry their products. When selecting intermediaries, the company should determine what characteristics distinguish the better ones. It will want to evaluate the channel members years in business, other lines carried, growth and profit record, cooperativeness, and reputation. If the intermediaries are sales agents, the company will want to evaluate the number and character of other lines carried, and the size and quality of the sales force. If the intermediary is a retail store that wants exclusive or selective distribution, the company will want to evaluate the stores customers, location, and future growth potential. 16

Motivating Channel Members

Once selected channel members must be continuously motivated to do their best. The company must sell not only through the intermediaries, but to them. Most producers see the problem as finding ways to gain intermediary cooperation. They use the carrot-and-stick approach. At times they offer positive motivators such as higher margins, special deals, premiums, cooperative advertising allowances, display allowances and sales contests. At other times they use negative motivators, such as threatening to reduce margins, to slow down delivery, or to end the relationship altogether. A producer using this approach usually has not done a good job of studying the needs, problems, strengths, and weaknesses of its distributors. More advanced companies try to forge long-term partnership with their distributors. This involves building a planned, professionally managed vertical marketing system that meets the needs of both the manufacturer and the distributors. Thus, Procter & Gamble and Wal-Mart jointly plan merchandising goals and strategies, inventory levels, and advertising and promotion plans. In managing its channels, a company must convince distributors that they can make their money by being part of an advanced vertical marketing system.

Evaluating Channels Members

The producer must regularly check each channel members performance against standards such as sales quotas, average inventory levels, customer delivery time, and treatment of damaged and lost goods, cooperation in company promotion and training programs, and services to the customer. The company should recognize and reward intermediaries, who are performing well. Those who are performing poorly should be helped or replaced. A company may periodically requalify its intermediaries and prune the weaker ones. For example, when IBM first introduced its PS/2 personal computers, it reevaluates its dealers and allowed only the best ones to carry the new models. Each IBM dealer had to submit a business plan, send a sales and service employee to IBM training classes, and meet new sales quotas. Only about two-thirds of IBM 2 200 dealers qualified to carry the PS/2 models. Finally, manufacturers need to be sensitive to their dealers. Those who treat their dealers lightly risk not only losing their support but also causing some legal problems.

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Understanding the Distribution Channels

Understanding the nature of distribution channels is important, as choosing among distribution channels is one of the most challenging decisions facing the firm. Marketing intermediaries are used because they provide greater efficiency in making goods available to target markets. The key distribution channel function is moving goods from producers to consumers by helping to complete transactions and fulfilling the completed transaction. Distribution channels can be described by the number of channel levels, which can include no intermediaries in a direct channel, or one to several intermediaries in indirect channels. Distribution channels can also be used in less tangible situations such as the service sector and even in person market. Each channel system creates a different level of sales and costs. Once a distribution channel has been chosen, the firm must usually stick with it for a long time. The chosen channel strongly affects, and is affected by, the other elements in the marketing mix. There are different types of channel behavior and organization. Each firm needs to identify alternative ways to reach its market. Available means vary from direct selling to using one, two, three, or more intermediary channel levels. Marketing channels face continuous and sometimes dramatic change. Three of the most important trends channel cooperation, conflict, and competition. Channel design decisions begin with assessing customer service needs and setting the channel objectives. The company then identifies major channel alternatives in terms of types of middlemen, the number of intermediaries, and the responsibilities of channel members. Next managers must evaluate the major alternatives. Channel management decisions include selecting qualified intermediaries and motivating channel members. Individual channel members must be evaluated regularly.

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CHAPTER V METHODOLOGY AND LIMITATIONS OF THE STUDY

19

CHAPTER-5 RESEARCH METHODOLOGY

RESEARCH DESIGN
A research design is purely and simply the frame work or plan for a study that guides in the collection and analysis of the data. There are three types of research designs, they are Exploratory research design Descriptive research design Casual or Experimental research design Since it is a retailers survey the researcher has done descriptive research design. Descriptive research design Descriptive research is one that concerned with describing the characteristics of a particular individual, or of a group. The descriptive study is typically concerned with determining frequency with which something occurs or how two variables vary together. Here the problems are defined and the solutions are provided.

Sample Size of the study The sample unit selected for this study is retail outlets. The sample size for the study is 200.

Sampling Technique For the present study the researcher used the convenience sampling technique. Sampling units are chosen primarily in accordance with the investigators convenience.

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SOURCES OF DATA
There are two types of data namely primary data and secondary data. Primary Data Primary data refers to those data that are collected newly and they are not used earlier. The researcher has to gather the primary data freshly for the specific study undertaken by him. The primary data are explicitly gathered for a specific research project. The primary data can be collected by three methods namely observation method, experimentation method and survey method. Survey method is one of the most common and widely used primary data collection methods. Survey research is the systematic gathering of data from respondents through questionnaires. Secondary Data The secondary data refers to those data which were gathered for some other purpose and are already available in the firms internal records and commercial, trade or government publications.

TOOLS OF THE STUDY

The researcher has used various tools for analyzing the data collected. 1. Simple percentage analysis. 2. Cross tabulation. 3. Chi-square test. The chi-square test is one of the simplest and most widely used non parametric test in statistical work. The chi-square was first used by KARL PEARSON the year 1900. The symbol chi- square ( 2) is a Greek letter. The quantify chi-square describes magnitude of the discrepancy between theory and observation.

= (O-E)2 /E

O= refers to observed frequency, E= refers to expected frequency.

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DATA COLLECTION METHOD

The primary data required for this study is collected through schedules. The schedule method is also like the collection of data through questionnaire, with little difference which lies in the fact that questions are being filled in by the enumerators according to the replies of the respondents for the questions. Scaling Technique: The scaling technique used by the researcher in this study is Likert-type scales. Likert-type scales are developed by utilizing the item analysis approach wherein a particular item is evaluated on the basis of how well it discriminates between those persons whose total score is high and whose score is low.

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LIMITATIONS OF THE STUDY

The study is conducted in the Coimbatore region only. Hence the results may not be applicable to other geographical areas. The study is conducted only with local retailers and is not applicable to organized retail shops. The time period is very short. The size of the sample is low when compared to the total population. The study was limited to extend of abilities and willingness of the respondents to answer appropriately to the questions.

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CHAPTER VI COMPANY PROFILE

24

CHAPTER-6

COMPANY PROFILE

EVOLUTION:
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited. The Company's headquarter building, 'Virginia House. The Company's ownership progressively indianised, and the name of the Company was changed to I.T.C. Limited. In 1974 the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened ITC Limited.

CIGARETTE BUSINESS:
Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company.

PACKING&PRINTING BUSINESS:
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house.

HOTEL BUSINESS:
In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcome group Hotel Chola'. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India. 25

PAPERBOARDS BUSINES:
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division.ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range.

PAPER BOARDS&SPECIALITY DIVISION:

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002.

AGRI BUSINESS:
Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with Soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

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GREETING CARDS BUSINESS:

In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'. In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books and Slam books.

STATIONERY BUSINESS:
In the same year, ITC also launched 'Expressions. Matrubhasha', a vernacular range of greeting cards in eight languages and 'Expressions Paper Kraft', a range of premium stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the school stationery segment.

LIFESTYLE RETAILING BUSINESS:

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Club life evening wear (2003).ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002.In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular segment for the young woman.

ITC-INFOTECH INDIA LIMITED:

In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC InfoTech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC InfoTech is one of Indias fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment.

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FOODS BUSINESS:
ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002,

ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candy man confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sun feast as the Company entered the biscuits segment.ITC entered the fast growing branded snacks category with Bingo! In 2007.In just seven years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing.

MATCHES & AGARBATTIS BUSINESS:

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector.ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

BATH & BODY CARE PRODUCTS:

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005.Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme).Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007.The Company also launched the Vivel De Wills &Vivel range of soaps in February and Vivel range of shampoos in June 2008. 28

CHAPTER-VII DATA ANALYSIS AND INTERPRETATION

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CHAPTER 7 DATA ANALYSIS AND INTERPRETATION ANALYSIS OF DATA

TABLE 1 SATIFICATION LEVEL OF THE RETAILERS TOWARDS THE SERVICE FREQUENCY OF THE COMPANIES

Companies ITC HUL NESTLE P&G BRITTANIA

Service Frequency Highly Satisfied Count 200 100% Count 157 100% Count 162 100% Count 108 100% Count 163 100%

Total 200 100% 157 100% 162 100% 108 100% 163 100%

INFERENCE All the retailers are 100% satisfied about the service frequency of all the five companies.

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FI IGURE 1 SATIF FICATION LEVEL OF F RETAILE ERS TOWA ARDS THE SERVICE FREQUENCY OF THE E COMPAN NIES

200 0 180 0 160 0 140 0 120 0 100 0 80 0 60 0 40 0 20 0 0 ITC HUL NESTLE P&G BRIT TTANIA servicefreq quencyhighly satisfied Percentage e

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TABLE 2 SATISFICATION LEVEL OF RETAILERS TOWARDS THE BILLS ALLOWED BY THE COMPANIES

COMPANIES

HIGHLY DIS SATIAFIED COUNT % COUNT % 0 0% 7 4.5% 4 2.5% 11 10.2% 6 3.7%

BILLS ALLOWED DIS NEUTRAL SATISFIED HIGHLY TOTAL SATISFIED SATISFIED

ITC

0 0% 24 15.3% 14 8.6% 20 18.5% 41 25.2%

7 3.5% 94 59.9% 66 40.7% 48 44.4% 74 45.4%

118 59.0% 27 17.2% 62 38.3% 24 22.2% 36 22.1%

75 37.5% 5 3.2% 16 9.9% 5 4.6% 6 3.7%

200 100% 157 100% 162 100% 108 100% 163 100%

HUL

NESTLE

COUNT %

P&G

COUNT %

BRITTANIA

COUNT %

INFERENCE 37.5% of the retailers are highly satisfied, 59.0 are satisfied and3.5 are neutral about the bills allowed by ITC.3.2% of the retailers are highly satisfied, 17.2% are satisfied, 59.9% are neutral, 15.3% are dissatisfied and 4.5% are highly dissatisfied about the bills allowed by HUL. 9.9% of the retailers are highly satisfied,38.3% are satisfied, 40.7% are neutral, 8.6% are dissatisfied and 2.5% are highly dissatisfied about the bills allowed by NESTLE.4.6% of the retailers are highly satisfied, 22.2% are satisfied, 44.4% are neutral, 18.5% are dissatisfied and 10.2% are highly dissatisfied about the bills allowed by P&G.3.7% of the retailers are highly satisfied, 22.1% are satisfied, 45.4% are neutral, 25.2% are dissatisfied and 3.7% are highly dissatisfied about the bills allowed by . 32

FI IGURE 2 SATIS SFACTION N LEVEL OF RETAIL LERS TOWA ARDS THE E BILLS AL LLOWED BY THE COMPANIE C ES

120 0 100 0 80 0 60 0 40 0 20 0 0 ITC HUL NESTLE P&G BRITTANIA

HIGHLYDIS D SATIAFIED DISSATIS SFIED NEUTRAL L SATISFIED D HIGHLYSATISFIED S

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TABLE 3 SATISFICATION LEVEL OF RETAILERS TOWARDS THE CREDIT PERIOD GIVEN BY THE COMPANIES

CREDIT PERIOD COMPANIES ITC COUNT % COUNT % COUNT % COUNT % COUNT % HIGHLY DIS HIGHLY DIS NEUTRAL SATISFIED TOTAL SATISFIED SATISFIED SATISFIED 0 0% 0 0% 0 0% 4 3.7% 0 0% 0 0% 11 7.0% 7 4.3% 11 10.2% 10 6.1% 4 2.0% 26 16.6% 23 14.2% 0 0% 29 17.8% 110 55.0% 90 57.3% 98 60.5% 74 68.5% 93 57.1% 86 43.0% 30 19.1% 34 21.0% 19 17.6% 31 19.0% 200 100% 157 100% 162 100% 108 100% 163 100%

HUL

NESTLE

P&G

BRITTANIA

INFERENCE 43% of the retailers are highly satisfied, 55% are satisfied and 2% are neutral about the credit period allowed by ITC.19.1% of the retailers are highly satisfied, 57.3% are satisfied, 16.6% are neutral and 7% are dissatisfied about the credit period allowed by HUL.21% of the retailers are highly satisfied, 60.5% are satisfied, 14.2% are neutral and 4.3% are dissatisfied about the credit period allowed by NESTLE.17.6% of the retailers are highly satisfied, 68.5% are satisfied, 10.2% are dissatisfied and 3.2% are highly dissatisfied about the credit period allowed by P&G.19.0% of the retailers are highly satisfied, 57.1% are satisfied, 17.8% are neutral and 6.1% are dissatisfied about the credit period allowed by BRITTANIA. 34

FI IGURE 3 SAT TISFICATION LEVEL L OF RETA AILERS TO OWARDS THE T CREDI IT PERIOD D ALL LOWED BY Y THE COM MPANIES
120

100

80 Hig ghlyDissatisfie ed Dissatisfied 60 Ne eutral Satisfied 40 ghlySatisfied Hig

20

0 ITC HUL NESTLE P&G BRITTANIA A

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TABLE 4 SATISFICATION LEVEL OF RETAILERS TOWARDS THE DELIVERY TIME LINE OF THE COMPANIES DELIVERY TIME LINE HIGHLY DIS HIGHLY DIS NEUTRAL SATISFIED TOTAL SATISFIED SATISFIED SATISFIED COUNT % COUNT % COUNT % COUNT % COUNT % 0 0% 2 1.3% 0 0% 0 0% 0 0% 0 0% 4 2.5% 0 0% 0 0% 3 1.8% 16 8.0% 5 3.2% 0 0% 10 9.3% 9 5.5% 22 11.0% 11 7.0% 13 8.0% 14 13.0% 13 8.0% 162 81.0% 135 149 92.0% 84 77.7% 138 84.7% 200 100% 157 100% 162 100% 108 100% 163 100%

COMPANIES ITC HUL NESTLE P&G BRITTANIA

INFERENCE 81% of the retailers are highly satisfied, 11% are satisfied and 8% are neutral about the delivery time line of ITC.86% of the retailers are highly satisfied, 7% are satisfied, 3.2% are neutral, 2.5% are dissatisfied and 1.3% are highly dissatisfied about the delivery time line of HUL.92% of the retailers are highly satisfied and 8% are satisfied about the delivery time line of NESTLE.77.8% of the retailers are highly satisfied, 13% are satisfied and 9.2% are neutral about the delivery time line of P&G.84.7% 0f the retailers are highly satisfied, 8% are satisfied 5.5% are neutral and 1.8% are dissatisfied about the delivery time line of BRITTANIA.

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FI IGURE 4 SATISF FICATION N LEVEL OF F RETAILE ERS TOWA ARDS THE E DELIVER RY TIME LI INE OF THE E COMPAN NIES

18 80 16 60 14 40 12 20 10 00 8 80 6 60 4 40 2 20 0 ITC HUL NESTLE P&G BRITTANIA High hlyDissatisfied Dissa atisfied Neut tral Satis sfied High hlySatisfied

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TABLE 5 SATISFACTION LEVEL OF RETAILERS TOWARDS DELIVERY EFFICIENCY OF THE COMPANIES DELIVERY EFFICIENCY HIGHLY DIS NEUTRAL SATISFIED HIGHLY TOTAL DIS SATISFIED SATISFIED SATISFIED COUNT % COUNT % COUNT % COUNT % COUNT % 0 0% 1 0.6% 0 0% 0 0% 1 0.6% 4 2.0% 13 8.3% 0 0% 0 0% 7 4.3% 6 3.0% 32 20.4% 0 0% 12 11.1% 16 9.8% 77 38.5% 50 31.8% 60 37.0% 45 41.7% 63 38.7% 113 56.5% 61 38.9% 102 63.0% 51 47.2% 76 46.6% 200 100% 157 100% 162 100% 108 100% 163 100%

COMPANIES ITC HUL NESTLE P&G BRITTANIA

INFERENCE: 56.55 of the retailers are highly satisfied, 38.5% are satisfied, 3% are neutral and 2% are dissatisfied about the delivery efficiency of ITC.38.9% of the retailers are highly satisfied, 31.8% are satisfied, 20.4% are neutral, 8.3% are dissatisfied and 0.6% are highly dissatisfied about the delivery efficiency of HUL.63% of the retailers are highly satisfied and 37% are satisfied about the delivery efficiency of NESTLE.47.2% of the retailers are highly satisfied, 41.7% are satisfied and 11.1% are neutral about the delivery efficiency of P&G.46.6% of the retailers are highly satisfied, 38.7% are satisfied, 9.8% are satisfied and 4.3% are dissatisfied about the delivery efficiency of BRITTANIA.

38

FIGU URE 5 SATISF FACTION LEVEL L OF F RETAILE ERS TOWA ARDS DELIVERY EFF FICIENCY OF THE COMPA ANIES

120

100

80

HighlyDissatisfied Dissa atisfied

60

Neut tral Satisfied

40

HighlySatisfied

20

0 IT TC HUL NESTLE P&G BRITTANIA

39

TABLE 6

SATISFACTION LEVEL OF RETAILERS TOWARDS THE D&D REPLACEMENT OF THE COMPANIES

COMPANIES

HIGHLY DIS SATISFIED COUNT % COUNT % COUNT % COUNT % COUNT % 2 1.0% 15 9.6% 2 1.2% 4 3.7% 2 1.2%

D&D REPLACEMENT DIS NEUTRAL SATISFIED HIGHLY TOTAL SATISFIED SATISFIED 10 5.0% 60 38.2% 0 0% 2 1.9% 13 8.0% 18 9.0% 60 38.2% 10 6.2% 11 10.2% 22 13.5% 65 32.5% 12 7.6% 46 28.4% 52 48.1% 63 38.7% 105 52.5% 10 6.4% 104 64.2% 39 36.1% 63 38.7% 200 100% 157 100% 162 100% 108 100% 163 100%

ITC HUL NESTLE P&G BRITTANIA INFERENCE

52.5% of the retailers are highly satisfied, 32.5% are satisfied, 9% are neutral, 5% are dissatisfied and 1% are highly dissatisfied about the D&D Replacement of ITC.6.4% of the retailers are highly satisfied, 7.6% are satisfied, 38.2% are neutral, 38.2% are dissatisfied and 9.6% are highly dissatisfied about the D&D Replacement of HUL.64.2% of the retailers are highly satisfied, 28.4% are satisfied,6.2% are neutral and 1.2% are highly dissatisfied about the D&D Replacement of NESTLE.36.1% of the retailers are highly satisfied, 48.1% are satisfied, 10.2% are neutral, 1.9% are dissatisfied and 3,7% are highly dissatisfied about the D&D Replacement of P&G.38.7% of the retailers are highly satisfied, 38.7% are satisfied, 13.5% are neutral, 8% are dissatisfied and 1.2% are highly dissatisfied about the D&D Replacement of BRITTANIA.

40

FI IGURE 6 SATIS SFACTION LEVEL OF F EMPLOY YEES TOW WARDS THE E D&D REP PLACEME ENT OF THE E COMPAN NIES

12 20 10 00 8 80 6 60 4 40 2 20 0 ITC HUL NESTLE P&G BRITTANIA

High hlyDissatisfied Dissa atisfied Neut tral Satis sfied High hlySatisfied

41

TABLE 7 SATISFACTION LEVEL OF RETAILERS TOWARDS THE PROFIT MARGIN PROVIDED BY THE COMPANIES D&D REPLACEMENT DIS NEUTRAL SATISFIED HIGHLY TOTAL SATISFIED SATISFIED

COMPANIES

HIGHLY DIS SATISFIED COUNT % COUNT % COUNT % COUNT % COUNT % 2 1.0% 7 4.5% 4 2.5% 0 0% 3 1.8%

ITC

28 14.3% 34 21.7% 35 21.6% 26 24.1% 32 19.6%

83 41.5% 63 40.1% 60 37.0% 36 33.3% 60 36.8%

74 37.0% 53 33.8% 62 38.3% 46 42.6% 66 40.5%

13 6.5% 0 0% 1 0.6% 0 0% 2 1.2%

200 100% 157 100% 162 100% 108 100% 163 100%

HUL

NESTLE

P&G

BRITTANIA

INFERENCE: 6.5% of the retailers are highly satisfied, 37% are satisfied, 41.5% are neutral, 14% are dissatisfied and 1% are highly dissatisfied about the profit margin given by ITC.33.8% of the retailers are satisfied, 40.1% are neutral, 21.7% are dissatisfied and 2.5% are highly dissatisfied about the profit margin given by HUL.0.6% of the retailers are highly satisfied, 38.3% are satisfied, 37% are neutral,21.6% are dissatisfied and 2.5% are highly dissatisfied about the profit margin given by NESTLE.42.6% of the retailers are satisfied, 33.3% are neutral and 24.1% are dissatisfied about the profit margin given by P&G.1.2% of the retailers are highly satisfied, 40.5% are satisfied, 36.8% are neutral, 19.6% are dissatisfied and 1.8% are highly dissatisfied about the profit margin given by BRITTANIA.

42

FI IGURE 7 TISFACTIO ON LEVEL OF RETAI ILERS TOW WARDS TH HE PROFIT T MARGIN N SAT PRO OVIDED BY B THE CO OMPANIES

90 0 80 0 70 0 60 0 50 0 40 0 30 0 20 0 10 0 0 ITC HUL NESTLE P&G BRITTANIA High hlyDissatisfied Dissa atisfied Neut tral Satis sfied High hlySatisfied

43

TABLE 8

SATISFACTION LEVEL OF RETAILERS TOWARDS THE CONSUMER PROMO OFFERED BY THE COMPANIES

COMPANIES

HIGHLY DIS SATISFIED

CONSUMER PROMO DIS NEUTRAL SATISFIED HIGHLY TOTAL SATISFIED SATISFIED

ITC

COUNT %

2 1.0%

7 3.5%

59 29.5%

116 58.0%

16 8.0%

200 100%

HUL

COUNT %

2 1.3%

26 16.6%

63 40.1%

61 38.9%

5 3.2%

157 100%

NESTLE

COUNT %

14 8.6%

48 29.6%

41 25.3%

53 32.7%

6 3.7%

162 100%

P&G

COUNT %

4 3.7%

29 26.9%

22 20.4%

52 48.1%

1 0.9%

108 100%

BRITTANIA

COUNT %

9 5.5%

64 39.3%

33 20.2%

54 33.1%

3 1.8%

163 100%

INFERENCE: 8% of the retailers are highly satisfied, 58% are satisfied, 29.55 are neutral, 3.5% are dissatisfied and 1% are highly dissatisfied about the customer promo given by ITC.3.2% of the retailers are highly satisfied, 38.9% are satisfied, 40.1% are neutral, 16.6% are dissatisfied and 1.3% are highly dissatisfied about the customer promo given by HUL.3.7% of the retailers are highly satisfied , 32.7% are satisfied, 25.3% are neutral, 29.6% are dissatisfied and 8.6% are highly dissatisfied about the customer promo given by NESTLE.0.9% of the retailers are highly 44

satisfied, , 48.1% are satisfied, an nd 20.4% are e neutral. 26.9% are diss satisfied and d 3.7% are highly h dissatisfi ied about the e customer promo p given n by P&G.1.8% of the retailers are e highly satis sfied, 33.1% ar re satisfied, 20.2% are neutral, n 39.3 3% are dissa atisfied and 5.5% are hi ighly dissati isfied about the e customer promo p given by BRITTA ANIA.

CHART 8 SAT TISFACTIO ON LEVEL L OF THE RETAILER R RS TOWARD DS THE CU USTOMER R PROMO O OFFERE ED BY THE E COMPAN NIES

120

100

80 High hlyDissatisfied Dissa atisfied 60 Neut tral Satis sfied 40 High hlySatisfied

20

0 ITC HUL NE ESTLE P& &G BRITTAN NIA

45

TABLE 9 SATISFACTION LEVEL OF RETAILERS TOWARDS THE SCHEME COMMUNICATION BY THE SALES PERSONS OF THE COMPANIES

COMPANIES

SCHEME COMMUNICATION HIGHLY DIS NEUTRAL SATISFIED HIGHLY TOTAL DIS SATISFIED SATISFIED SATISFIED COUNT % COUNT % COUNT % COUNT % COUNT % 0 0% 3 1.9% 3 1.8% 3 2.7% 0 0% 2 1.0% 2 1.3% 2 1.2% 0 0% 3 1.8% 7 3.5% 10 6.4% 13 8.0% 4 3.7% 7 4.3% 59 29.5% 61 38.9% 47 29.0% 33 30.6% 57 35.0% 132 66.0% 81 51.6% 97 59.9% 68 63.0% 96 58.9% 200 100% 157 100% 162 100% 108 100% 163 100%

ITC HUL NESTLE P&G BRITTANIA

INFERENCE: 66% of the retailers are highly satisfied, 29.5% are satisfied, 3.5% are neutral and 1% are dissatisfied about the scheme communication of ITC salesmen51.6% of the retailers are highly satisfied, 38.95 are satisfied, 6.4% are neutral, 1.3% are dissatisfied and 1.95 are highly dissatisfied about the scheme communication of HUL salesmen.59.9% of the retailers are highly satisfied, 29.5% are satisfied, 3.5% are neutral and 1% are dissatisfied about the scheme communication of NESTLE salesmen.63% of the retailers are highly satisfied, 30.6% are satisfied, 3.7% are neutral and 2.8% are highly dissatisfied about the scheme communication of P&G salesmen.58.9% of the retailers are highly satisfied, 35% are satisfied, 4.3% are neutral and 1.8% are dissatisfied about the scheme communication of BRITTANIA salesmen.

46

FI IGURE 9 SATISFACT TION LEVE EL OF THE E RETAILE ERS TOWA ARDS THE SHEME COMMUN NICATION BY THE SA ALESPERS SONS OF THE T COMP PANIES

140 120 100 HighlyD Dissatisfied 80 60 40 20 0 ITC HUL NESTLE P&G BRITTANIA Dissatis sfied Neutral l Satisfied d HighlyS Satisfied

47

TABLE 10

SATISFACTION LEVEL OF RETAILERS TOWARDS THE SALESMENS APPROACH SALESMENS APPROACH HIGHLY DIS NEUTRAL SATISFIED HIGHLY TOTAL DIS SATISFIED SATISFIED SATISFIED COUNT % COUNT % COUNT % COUNT % COUNT % 0 0% 3 1.9% 1 0.6% 3 2.8% 0 0% 1 0.5% 3 1.9% 5 4.6% 5 4.6% 8 4.9% 2 1.0% 17 10.8% 3 1.9% 1 0.9% 17 10.4% 41 20.5% 36 22.9% 38 23.5% 18 16.7% 34 20.9% 156 78.0% 98 62.4% 115 71.0% 81 75.0% 104 63.8% 200 100% 157 100% 162 100% 108 100% 163 100%

COMPANIES

ITC HUL NESTLE P&G BRITTANIA

INFERENCE: 78% of the retailers are highly satisfied, 20.5% are satisfied, 1% are neutral and 0.5% are dissatisfied about the ITC salesmans approach.62.4% of the retailers are highly satisfied, 22.9% are satisfied, 10.8% are neutral, 1.9% are dissatisfied and 1.9% are highly dissatisfied about the HUL salesmans approach.71% of the retailers are highly satisfied, 23.5% are satisfied, 1.9% are neutral, 3.1% are dissatisfied and 0.6% are highly dissatisfied about the NESTLE salesmans approach.75% of the retailers are highly satisfied, 16.7% are satisfied, 0.9% are neutral, 4.6% are dissatisfied and 2.8% are highly dissatisfied about the P&G salesmans approach.63.8% of the retailers are highly satisfied, 20.9% are satisfied, 10.4% are neutral, and 4.9% are dissatisfied about the BRITTANIA salesmans approach.

48

FI IGURE 10 SAT TISFACTIO ON LEVEL OF THE RETAILERS S TOWARD DS THE SA ALESMENS S PPROACH AP

160 140 120 100 80 60 40 20 0 ITC HUL NESTLE P&G BRITTANIA HighlyD Dissatisfied Dissatisf fied Neutral Satisfied d HighlySa atisfied

49

TABLE 11

SATISFACTION LEVEL OF RETAILERS TOWARDS THE SALESMENABSENTEEISM

COMPANIES

SALESMENS ABSENTEEISM HIGHLY DIS NEUTRAL SATISFIED HIGHLY TOTAL DIS SATISFIED SATISFIED SATISFIED COUNT % COUNT % COUNT % COUNT % COUNT % 1 0.5% 0 0% 1 0.6% 4 3.7% 1 .6% 9 4.5% 4 2.5% 0 0% 0 0% 3 1.8% 28 14.0% 18 11.5% 0 0% 1 0.9% 4 2.5% 127 63.5% 111 70.7% 46 28.4% 81 75.0% 116 71.2% 35 17.5% 24 15.3% 115 71.0% 22 20.4% 39 23.9% 200 100% 157 100% 162 100% 108 100% 163 100%

ITC HUL NESTLE P&G BRITTANIA

INFERENCE: 17.5% of the retailers are highly satisfied, 63.5% are satisfied, 14% are neutral, 4.5% are dissatisfied and 0.5% are highly dissatisfied about the ITC salesmens absenteeism.15.3% of the retailers are highly satisfied, 70.7% are satisfied, 11.5% are neutral and 2.5% are dissatisfied about the HUL salesmens absenteeism.71% of the retailers are highly satisfied, 28.4% are satisfied and 0.6% are highly dissatisfied about the NESTLE salesmens absenteeism20.4% of the retailers are highly satisfied, 75% are satisfied, 0,9% are neutral and 3.7% are highly dissatisfied about the P&G salesmens absenteeism.23.9% of the retailers are highly satisfied, 71.2% are satisfied, 2.5% are neutral, 1.8% are dissatisfied and 0.6% are highly dissatisfied about the BRITTANIA salesmens absenteeism.

50

FI IGURE 11 SA ATISFACT TION LEVE EL OF THE E RETAILE ERS TOWA ARDS SALE ESMENS ABSENTEEISM M

140 120 100 H HighlyDissatisf fied 80 60 40 20 0 IT TC HU UL NEST TLE P&G G BRITTAN NIA D Dissatisfied N Neutral S Satisfied H HighlySatisfied d

51

TABLE 12 SATISFACTION LEVEL OF RETAILERS TOWARDS RESPONSE FOR EMERGENCY ORDERS BY THE COMPANIES RESPONSE FOR EMERGENCY ORDERS HIGHLY DIS NEUTRAL SATISFIED HIGHLY TOTAL DIS SATISFIED SATISFIED SATISFIED COUNT % COUNT % COUNT % COUNT % COUNT % 143 71.5% 135 86.0% 101 62.3% 75 69.4% 129 79.1% 27 13.5% 7 4.5% 26 16% 22 20.4% 21 12.9% 20 10.0% 7 4.5% 17 10.5% 7 6.5% 9 5.5% 10 5.0% 8 5.1% 13 8% 4 3.7% 4 2.5% 0 0% 0 0% 5 3.1% 0 0% 0 0% 200 100% 157 100% 162 100% 108 100% 163 100%

COMPANIES

ITC HUL NESTLE P&G BRITTANIA

INFERENCE 5% of the retailers are satisfied, 10% are neutral, 13.5% are dissatisfied and 71.5% are highly dissatisfied about the response for emergency order in ITC.5.1% of the retailers are satisfied, 4.5% are neutral, 4.5% are dissatisfied and 86% are highly dissatisfied about the response for emergency order in HUL.3.1% of the retailers are highly satisfied,8% are satisfied, 10.5% are neutral, 16% are dissatisfied and 62.3% are highly dissatisfied about the response for emergency order in NESTLE.3.7% of the retailers are satisfied, 6.5% are neutral, 20.4% are dissatisfied and 69.4% are highly dissatisfied about the response for emergency order in P&G.2.5% of the retailers are satisfied, 5.5% are neutral, 12.9% are dissatisfied and 79.1% are highly dissatisfied about the response for emergency order in BRITTANIA.

52

FI IGURE 12 SA ATISFACTION LEVEL L OF THE RETAILER R RS TOWAR RDS RESPO ONSE FOR EMERGE ENCY ORD DERS BY TH HE COMPA ANIES

16 60 14 40 12 20 10 00 High hlyDissatisfied 8 80 6 60 4 40 2 20 0 Dissa atisfied Neut tral Satis sfied High hlySatisfied

53

TABLE 13 SATISFACTION LEVEL OF RETAILERS TOWARDS THE FREQUENCY OF COMPANY PERSONS VISIT FREQUENCY OF COMPANY PERSONS VISIT HIGHLY DIS NEUTRAL SATISFIED HIGHLY TOTAL DIS SATISFIED SATISFIED SATISFIED COUNT % COUNT % COUNT % COUNT % COUNT % 70 35.0% 80 51.0% 64 39.5% 74 68.5% 116 71.2% 90 45.0% 31 19.7% 35 21.6% 18 16.7% 31 19.0% 34 17.0% 16 10.2% 29 17.9% 13 12.0% 7 4.3% 6 3.0% 29 18.5% 29 17.9% 3 2.8% 9 5.5% 0 0% 1 0.6% 5 3.1% 0 0% 0 0% 200 100% 157 100% 162 100% 108 100% 163 100%

COMPANIES

ITC HUL NESTLE P&G BRITTANIA

INFERENCE 3% of the retailers are satisfied, 17% are neutral, 45% are dissatisfied and 35% are highly dissatisfied about the company persons visit of ITC.0.6% of the retailers are highly satisfied 18.5% are satisfied 10.2% are neutral, 19.7% are dissatisfied and 51% are highly dissatisfied about the company persons visit of HUL.3.1% of the retailers are highly satisfied, 17.9% are satisfied, 17.9%are neutral, 21.6% are dissatisfied and 39.5% are highly dissatisfied about the company persons visit of NESTLE.2.8% of the retailers are satisfied, 12% are neutral, 16.7% are dissatisfied and 68.5% are highly dissatisfied about the company persons visit of P&G.5.5% of the retailers are satisfied, 4.3% are neutral, 19% are dissatisfied and 71.2% are highly dissatisfied about the company persons visit of BRITTANIA.

54

FI IGURE 13 SAT TISFACTIO ON LEVEL L OF RETA AILERS TOWARDS TH HE FREQU UENCY OF C COMPANY Y PERSONS VISIT

120 0 100 0 80 0 60 0 40 0 20 0 0 ITC HUL NESTLE P&G BRITTANIA

HighlyDissatisfied Dissatisfied Neutral Satisf fied HighlySatisfied

55

OVERALL SATISFACTION RANK TABLE PARTICULARS Bills Allowed Credit Period Delivery Time Line Delivery Efficiency D&D Replacement Profit Margin Customer Promo Scheme Communication Salesmans Approach Salesman Absenteeism Response for Emergency Order ITC HUL NESTLE I I III II II I I I I V II III V II V V V III IV IV IV IV I I II III I I I IV IV V II P&G BRITTANIA IV II V III III II II III III II III V IV IV IV IV III V II V III V

Frequency of Company persons visit

III

II

IV

56

BUSSINESS EXPERIENCE VS CREDIT PERIOD-CHI-SQUARE TEST Null Hypothesis: There is no significant association between Business experience and credit period allowed by the company. Alternate Hypothesis: There is significant association between Business experience and credit period allowed by the company.

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 16.927a 17.656 9.158 200 df 6 6 1 Asymp. (2-sided) .010 .007 .002 Sig.

INFERENCE Using the Pearson chi-square test the calculated value (0.010) is less than the table value (0.05).so the null hypothesis is rejected. There is significant association between the Business experience and Credit period allowed by the company.

57

BUSINESS EXPERIENCE VS CUSTOMER PROMO OFFERED-CHI-SQUARE TEST Null Hypothesis: There is no significant association between the Business experience and customer promo offered Alternate Hypothesis: There is significant association between Business experience and customer promo offered. Chi-Square Tests Value df Asymp. sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases INFERENCE: Using the Pearson chi-square test at 95% confidence level the calculated value (0.009) is less than the table value (0.05).so the null hypothesis is rejected. There is significant association between Business experience and Customer promo offered. 26.620a 12 .009 29.271 12 .004 .426 200 1 .514 Sig. (2-

58

BUSINESS EXPERIENCE VS PROFIT MARGIN ALLOWED-CHI-SQUARE TEST

Null Hypothesis: There is no significant association between Business experience and profit margin given by the company. Alternate Hypothesis: There is significant association between Business experience and profit margin given by the company. Chi-Square Tests Value df Asymp. sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases INFERENCE Using the Pearson chi-square test at 95% confidence level the calculated value (0.005) is less than the table value (0.05).so the null hypothesis is rejected. There is significant association between the Business experience and profit margin given by the company. 28.332a 12 .005 29.347 12 .003 .562 200 1 .453 Sig. (2-

59

BUSINESS EXPERIENCE VS SALESMAN ABSENTEEISM-CHI-SQUARE TEST

Null Hypothesis: There is no significant association between Business experience and salesman absenteeism. Alternate Hypothesis: There is significant association between Business experience and salesman absenteeism. Chi-Square Tests Value df Asymp. Sig. (2sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases INFERENCE Using the Pearson chi-square test at 95% confidence level the calculated value (0.020) is less than the table value (0.05).so the null hypothesis is rejected. There is significant association between Business experience and salesman Absenteeism. 24.124a 12 .020 26.266 12 .010 .011 200 1 .918

60

MONTHLY TURN OVER VS BILLS ALLOWED-CHI- SQUARE TEST Null Hypothesis: There is no significant association between Monthly turn over and Bills allowed by the company. Alternate Hypothesis: There is significant association between Monthly turn over and Bills allowed by the company. Chi-Square Tests Value df Asymp. sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases INFERENCE Using the Pearson chi-square test at 95% confidence level the calculated value (0.014) is less than the table value (0.05).so the null hypothesis is rejected. There is significant association between monthly turn over and Bills Allowed. 15.965a 6 .014 18.986 6 .004 .208 200 1 .649 Sig. (2-

61

MONTHLY TURN OVER VS CREDIT PERIOD ALLOWEDCHI-SQUARE TEST

Null Hypothesis: There is no significant association between the Monthly turn over and credit period allowed by the company. Alternate Hypothesis: There is significant association between the Monthly turn over and credit period allowed by the company Chi-Square Tests Value df Asymp. sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 19.303a 6 .004 15.579 6 .016 1.085 200 1 .298 Sig. (2-

INFERENCE Using Pearson chi-square test at 95% confidence level the calculated value (0.004) is less than the table value (0.05).so the null hypothesis is rejected. There is significant association between Monthly Turn over and Credit period allowed by the company.

62

MONTHLY TURN OVER VS DELIVERY EFFICIENCY- CHI-SQUARE TEST

Null Hypothesis: There is no significant association between Monthly turn over and Delivery efficiency. Alternate Hypothesis: There is significant association between Monthly turn over and Delivery efficiency Chi-Square Tests Value df Asymp. sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 40.843a 9 .000 40.656 9 .000 7.549 200 1 .006 Sig. (2-

INFERENCE Using Pearson chi-square test at 95% confidence level the calculated value (0.00) is less than the table value (0.05). So the null hypothesis is rejected. There is significant association between the Monthly Turn over and Delivery efficiency.

63

MONTHLY TURN OVER VS COMPANY PERSONS VISIT-CHI- SQUARE TEST

Null Hypothesis: There is no significant association between Monthly turn over and frequency of company persons visit. Alternate Hypothesis: There is significant association between the Monthly turn over and frequency of company persons visit.

Chi-Square Tests Value df Asymp. sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases INFERENCE Using the Pearson chi-square test at 95% confidence level the calculated value (0.007) is less than the table value (0.05).so the null hypothesis is rejected. There is significant association between the Monthly Turn over and Frequency of company persons visit. 22.825a 9 .007 25.077 9 .003 1.837 200 1 .175 Sig. (2-

64

MONTHLY TURN OVER VS RESPONSE FOR EMERGENCY ORDER-CHI-SQUARE TEST Null Hypothesis: There is no significant association between Monthly turn over and Response for emergency order. Alternate Hypothesis: There is significant association between Monthly turn over and Response for emergency order.

Chi-Square Tests Value df Asymp. sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 40.962a 9 .000 37.901 9 .000 1.164 200 1 .281 Sig. (2-

INFERENCE Using the Pearson chi-square test at 95% confidence level the calculated value (0.00) is less than the table value (0.05).so the null hypothesis is rejected. There is significant association between the Monthly Turn over and Response for emergency order.

65

MONTHLY TURN OVER VS SALESMAN ABSENTEEISM- CHI-SQUARE TEST

Null Hypothesis: There is no significant association between Monthly turn over and salesman absenteeism. Alternate Hypothesis: There is significant association between the Monthly turn over and salesman absenteeism.

Chi-Square Tests Value df Asymp. sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 40.676a 12 .000 36.014 12 .000 .374 .541 Sig. (2-

200

INFERENCE Using the Pearson chi-square test at 95% confidence level the calculated value (0.00) is less than the table value (0.05).so the null hypothesis is rejected. There is significant association between the Monthly Turn over and sales man absenteeism.

66

MONTHLY TURN OVER VS SALESMANS APPROACH-CHI-SQUARE TEST

Null Hypothesis: There is no significant association between Monthly turn over and salesmans approach. Alternate Hypothesis: There is significant association between Monthly turn over and salesmans approach.

Chi-Square Tests Value df Asymp. sided) Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases INFERENCE Using the Pearson chi-square test at 95% confidence level the calculated value (0.00) is less than the table value (0.05).so the null hypothesis is rejected. There is significant association between the Monthly Turn over and salesmans approach. 46.797a 9 .000 49.105 9 .000 .293 200 1 .588 Sig. (2-

67

MONTHLY TURN OVER VS SCHEME COMMUNICATION-CHI-SQUARE TEST

Null Hypothesis: There is no significant association between Monthly turn over and scheme communication. Alternate Hypothesis: There is significant association between Monthly turn over and scheme communication.

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio N of Valid Cases

a

df Asymp. Sig. (2-sided)

20.294 9 .016 21.697 9 .010 1 .173 200

Linear-by-Linear Association 1.859

INFERENCE Using Pearson chi-square test at 95% confidence level the calculated value (0.016) is less than the table value (0.05).so the null hypothesis is rejected. There is significant association between the Monthly Turn over and scheme communication.

68

CHAPTER-VIII FINDINGS

69

CHAPTER-8

FINDINGS

All the retailers are 100% satisfied about the service frequency of all the five companies. 37.5% of the retailers are highly satisfied about the bills allowed by ITC. 3.2% of the retailers are highly satisfied about the bills allowed by HUL. 9.9% of the retailers are highly satisfied about the bills allowed by NESTLE 4.6% of the retailers are highly satisfied about the bills allowed by P&G 3.7% of the retailers are highly satisfied about the bills allowed by BRITTANIA 43% of the retailers are highly satisfied about the credit period allowed by ITC. 19.1% of the retailers are highly satisfied about the credit period allowed by HUL 21% of the retailers are highly satisfied, about the credit period allowed by NESTLE. 17.6% of the retailers are highly satisfied, about the credit period allowed by P&G. 19.0% of the retailers are highly satisfied about the credit period allowed by BRITTANIA. 81% of the retailers are highly satisfied about the delivery time line of ITC. 86% of the retailers are highly satisfied about the delivery time line of HUL. 92% of the retailers are highly satisfied and about the delivery time line of NESTLE. 77.8% of the retailers are highly satisfied about the delivery time line of P&G. 84.7% 0f the retailers are highly satisfied about the delivery time line of BRITTANIA. 56.55 of the retailers are highly satisfied about the delivery efficiency of ITC. 38.9% of the retailers are highly satisfied about the delivery efficiency of HUL. 63% of the retailers are highly satisfied about the delivery efficiency of NESTLE. 47.2% of the retailers are highly satisfied about the delivery efficiency of P&G. 46.6% of the retailers are highly satisfied about the delivery efficiency of BRITTANIA. 52.5% of the retailers are highly satisfied about the D&D Replacement of ITC. 6.4% of the retailers are highly satisfied about the D&D Replacement of HUL. 64.2% of the retailers are highly satisfied about the D&D Replacement of NESTLE 36.1% of the retailers are highly satisfied about the D&D Replacement of P&G. 38.7% of the retailers are highly satisfied about the D&D Replacement of BRITTANIA. 37% are satisfied about the profit margin given by ITC. 33.8% of the retailers are satisfied about the profit margin given by HUL. 38.3% are satisfied about the profit margin given by NESTLE. 42.6% of the retailers are satisfied about the profit margin given by P&G. 70



40.5% of the retailers are satisfied about the profit margin given by BRITTANIA 58% of the retailers are satisfied about the customer promo given by ITC. 38.9% of the retailers are satisfied about the customer promo given by HUL. 32.7% of the retailers are satisfied about the customer promo given by NESTLE. 48.1% of the retailers are satisfied about the customer promo given by P&G. 33.1% of the retailers are satisfied about the customer promo given by BRITTANIA. 66% of the retailers are highly satisfied about the scheme communication of ITC salesmen 51.6% of the retailers are highly satisfied about the scheme communication of HUL salesmen. 59.9% of the retailers are highly satisfied about the scheme communication of NESTLE salesmen. 63% of the retailers are highly satisfied about the scheme communication of P&G salesmen. 58.9% of the retailers are highly satisfied about the scheme communication of BRITTANIA salesmen. 78% of the retailers are highly satisfied about the ITC salesmans approach. 62.4% of the retailers are highly satisfied about the HUL salesmans approach. 71% of the retailers are highly satisfied about the NESTLE salesmans approach. 75% of the retailers are highly satisfied about the P&G salesmans approach 63.8% of the retailers are highly satisfied about the BRITTANIA salesmans approach. 63.5% of the retailers are satisfied about the ITC salesmens absenteeism. 70.7% of the retailers are satisfied about the HUL salesmens absenteeism. 28.4% of the retailers are satisfied about the NESTLE salesmens absenteeism 75% of the retailers are satisfied about the P&G salesmens absenteeism. 71.2% of the retailers are satisfied about the BRITTANIA salesmens absenteeism 71.5% of the retailers are highly dissatisfied about the response for emergency order in ITC. 86% of the retailers are highly dissatisfied about the response for emergency order in HUL. 62.3% of the retailers are highly dissatisfied about the response for emergency order in NESTLE. 69.4% of the retailers are highly dissatisfied about the response for emergency order in P&G. 79.1% of the retailers are highly dissatisfied about the response for emergency order in BRITTANIA. 35% of the retailers are highly dissatisfied about the company persons visit of ITC. 51% of the retailers are highly dissatisfied about the company persons visit of HUL. 39.5% of the retailers are highly dissatisfied about the company persons visit of NESTLE. 68.5% of the retailers are highly dissatisfied about the company persons visit of P&G.

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71.2% of the retailers are highly dissatisfied about the company persons visit of BRITTANIA. 97%of the retailers are highly dissatisfied about the distributor relationship of ITC. 98.1%of the retailers are highly dissatisfied about the distributor relationship of HUL. 94.4% of the retailers are highly dissatisfied about the distributor relationship of NESTLE. 96.3% of the retailers are highly dissatisfied about the distributor relationship of P&G. 96.3% of the retailers are highly dissatisfied about the distributor relationship of BRITTANIA. There is significant association between the Business Experience and Credit period allowed by the company. There is significant association between Business Experience and Customer promo offered. There is significant association between the Business Experience and profit margin given by the company. There is significant association between Business Experience and salesman Absenteeism. There is significant association between monthly turn over and Bills Allowed by the company. There is significant association between Monthly Turn over and Credit period allowed by the company. There is significant association between the Monthly Turn over and Delivery efficiency. There is significant association between the Monthly Turn over and Frequency of company persons visit. There is significant association between the Monthly Turn over and Response for emergency order. There is significant association between the Monthly Turn over and sales man absenteeism. There is significant association between the Monthly Turn over and salesmans approach. There is significant association between the Monthly Turn over and scheme communication.

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CHAPTER-IX SUGGESTIONS

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CHAPTER-9

SUGGESTIONS

ITC is lacking its efficiency in some aspects of its distribution channel when compared to its competitors. In those aspects ITC should set Nestle as bench mark and should take necessary actions to achieve it.

Delivery Time Line-Nestle Delivery Efficiency-Nestle D&D Replacement-Nestle. Salesman Absenteeism. Response for Emergency order Frequency of company persons visit Distributor Relationship.

D&D Replacement in the rural area is not efficient as in the urban area. So proper monitoring should be made to ensure the efficient D&D Replacement in rural areas. The relationship between food salesman and the pp salesman going for same line should be encouraged and both of them should be known about the shops covered by them. So that in the case of absence of one person the other can picks up the order from the shops in favor of him. So that the regular visit to the shops is ensured. The sales man should know the contact numbers of every retail shop covered by him and so in case of absence he may get the orders by contacting them the next day. Incase if a sales man leaves the company, these details will be helpful for the company and the new salesman for retaining those retailers. In the rural areas the distribution work can be done through Self Help Groups, because generally the rural women has the competency to conceive others .It will be more helpful for the company while launching a new brand. The DSs can be appointed as the companys direct employees as like what HUL has done a month before. So that the morale of the DSs will be improved which leads to both improvement in the distribution efficiency and enhancement in the sales.

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CHAPTER-X CONCLUSION

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CHAPTER-10

CONCLUSION

From the details collected from the retailers who are playing the intermediary role in the distribution of ITCs products, the effectiveness of the channel is in a satisfactory manner. Yet the company is lacking in some area where its competitors are doing well. So the company can concentrate more in the areas mentioned as where they are lacking, by the researcher and can take necessary actions to rectify them using the suggestions given by the researcher.

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ANNEXURE AND BIBLIOGRAPHY

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ANNEXURE

EVALUATING THE DISTRIBUTION CHANNEL EFFECTIVENESS QUESTIONNAIRE FOR RETAILERS

1. Retailer Name: 2. Outlet Name: 3. Outlet Type: 4. Location: Urban/Rural 5. Business Experience (in years): a. <5 b.5-10 c.10-15 6. Monthly Turnover (in rupees): a. <25000 b.25000-50,000 7. ITC Brands in the outlet: Sun feast Candy man Fiama di wills Vivel Home Lite Cheeta Fight

d.Above 15 c.50, 000-1, 00,000 d.>1, 00,000 Ashirwadh Superia Ship Wax Bingo Mint-o fresh Mangaldeep

8. Service Frequency of the Companies (per week): S.NO COMPANY Weekly Once Weekly Twice 15 days Once NAME 1. ITC 2. HUL 3. NESTLE INDIA 4. P&G 5. BRITANNIA 9. Credit period allowed by the companies (in days): S.No COMPANY 7 DAYS 1. 2. 3. 4. 5. ITC HUL NESTLE INDIA P&G BRITANNIA

Monthly Once

15 DAYS

30 DAYS

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10. What is the delivery time line taken by the companies from the day of Order? S.NO COMPANY 1 DAY 2 DAYS 3 DAYS 1. 2. 3. 4. 5. ITC HUL NESTLE INDIA P&G BRITANNIA

>3 DAYS

Ranking Order: Highly Satisfied-5 Dissatisfied-2 Neutral-3 Satisfied-4 Highly Dissatisfied-1 S.NO PARTICULARS Satisfaction level of Retailers towards the companies distribution channel ITC 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Target Outlet Service Frequency Credit Period Bills Allowed Delivery Time line Delivery Efficiency D&D Replacement Profit margin Customer Promo Scheme Communication Salesmans approach Salesman Absenteeism Response for Emergency Order Frequency of Company Persons visit Distributor Relationship TOTAL RANK 79 HUL NESTLE INDIA BRITANNIA P&G

BIBLIOGRAPHY
Ramasamy & Namakumari Marketing management published by Macmillan 4th edition 2009. Donald R Cooper & Pamela S Schindler -Business research methods published by Tata McGraw Hill 9th Edition. William G Zikmund -Business research methods published by Cengage learning 7th Edition. C B Gupta &Vijay Gupta Statistical methods published by Vikas publications 23rdrevised edition 2004. The major amount of data is collected from the ITC.

From the company website (www.itcportal.com).

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