A

Project Report
On
“The study on sales and distribution channel of
Pidilite Industries Pvt Ltd in Pune Region.”
Submitted in partial fulfilment of the requirements for
the Degree Certificate of
Master of Business Administration (M.B.A.)
(Through SPPU, Pune)
By
Vikrant Ashok Munde
(Roll No. 161810041)
A Study Conducted for the Company:
Pidilite Industries Pvt Ltd
At

International Institute of Management

Science
Chinchwad, Pune-411033
DECLARATION

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

Signature of the student

(Vikrant Ashok Munde)

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 ACKNOWLEDGEMENT

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

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

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

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

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

Mr.Sachin Madiwale for this work.

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

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 Executive Summery

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

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

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Chapter Particulars Page No.

Introduction
Objectives of the Project
1. Company Profile :
a. Vision
b. Mission
c. Logo
d. History of Organization
e. Organization Chart
f. Plant Location/Service Points
g. Product Profile
2. Statement of Problem:
a. Research Question/s
3 Theoretical Background of the Topic/Literature Review
4 Research Methodology :
a. Methods Used
b. Sources of Data
c. Data collection tools
d. Sampling
e. Tools used for Analysis
5 Data Analysis & Interpretation
6 Findings / Observations
7 Learning from the project:
a. Contribution to the organization
b. Learning of the student through the project
8 Scope & Limitations
9 Annexure :
- References
- Bibliography
- Questionnaire (if any) Index

INTRODUCTION:-

5
Generally in the market it is known that Pidilite is facing tough competition from camel
product in a market. The retailers are facing major problems in margin, service and supply
and demand.

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

SELECTION OF SUBJECT:-

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

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

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

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

OBJECTIVES

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

HISTORY OF PIDILITE COMPANY

7
1969
- The Company was incorported as a private limited company on 28th July under the name of
Parekh Dychem Industries Pvt. Ltd., to acquire and take over on a going concern the business
carried on by a partnership firm M/s. Parekh Dychem Industries established in 1961 and
having a factory in Mumbai. The Company was promoted by Balvantray Kalyanji Parekh
along with his brothers. The brand names, are being Fevicol, Fevibond, Fevigum, Pidifix,
Pidivyl, Pidicryl, Acrolise, etc.
- The Company undertook to set up synthetic resin project with a capacity resin project with a
capacity of 3000 TPA at Mahad Industrial area in Raigad district, Maharashtra. Also
undertook to set up a constructions chemicals project at Taloja industrial area, Taloja,
Maharashtra.
1984
- Three other companies in the same group viz., Kodivita Pvt. Ltd., erstwhile Pidilite
Industries Ltd., and Triveni Chemicals Ltd. were amalgamated with the Company effective
1st July, 1st April 1989 and 1st April 1992 respectively.
- Effective 1st July, Kondivita Pvt. Ltd. amalgamated with the Company after necessary
approvals. The shareholders of erstwhile Kondivita Pvt. Ltd., were allotted 41,000-15%
preference share of Rs 10 each and 19,500 shares of Rs 10 each.
- 54,000 I and II Pref. - 4% shares allotted to promoters. 26,000 No. of equity shares allotted
to promoters originally: 26,000 Rights shares issued in prop. 1:1 in 1980, 52,000 bonus
shares issued in prop. 1:1 in 1981.
1985
- I & II Pref. 4% shares redeemed. 12% redeemable shares upgraded to 15%. 19,500 No. of
equity shares and 41,000-15% Pref. shares allottee to Kondivita Pvt. Ltd. on amalgamation.
54,000-15% Pref. shares allotted to promoters & in lieu of 1st and 2nd 4% Pref. shares.
1986
- The Name of the Company was changed to PDI chemicals private limited on 1st July, and
then to PDI chemicals limited, on 28th October, 1988. Name was once again changed to
Pidilite Industries Ltd., on 21st February, 1990.
1989
- Effective 1st April, Pidilite Industries Ltd. was amalgamated with the Company. As per the
scheme of amalgamation, 1,93,500 No. of equity shares of Rs 10 each and 72,000-15%

8
preference shares of Rs 10 each were allotted to the shareholders of erstwhile Pidilite
Industrial Ltd.
1992
- As per the Scheme of Amalgamation approved by High Court of Mumbai, Triveni
Chemicals Ltd., (TCL) was merged with the Company effected 1st April. Accordingly 90588
No. of equity shares of Rs 10 each and 40,000-15% preference shares of Rs 10 each were
allotted to the erstwhile shareholders of TCL. 38,49,034 shares allotted in prop. 72:10 to
promoters on 29.1.93.
1993
- 15,36,378 shares issued at a premium of Rs 100 per share in October. Of which 1,50,000
shares issued on preferential allotment basis to Viny Chemicals India Ltd. (only 1,35,000
shares taken up). Balance 13,86,378 shares along with 1,50,000 shares not taken up were
issued to the public (all were taken up).
1994
- The projects for SBR Latices, AZO Pigments and Carbazole Dioxiene Violet Pigments were
commissioned.
- Apuraj Chemicals Ltd., was amalgamated with the Company. As per the scheme of
amalgamation, 66,000 No. of equity shares of Rs 10 each were allotted to the shareholders of
erstwhile Apuraj Chemicals Ltd.
- Vapkon Finance & Industries Ltd., Fevicil Adhesives & Chemicals Ltd. and Pidifin Finance
and Investment Ltd., are subsidiaries of the Company.
- 60,000 No. of Equity shares of Rs. 10 each to be issued and allotted to equity shareholders
of the erstwhile Apuraj Chemicals Ltd. pursuant to the scheme of amagalamtion.
1995
- Expansion project at Taloja was commissioned with an overall plant capacity of 2400 TPA
of construction chemical.
- The Company's technical collaboration agreement with Schomburg & Co., KG. Germany
for transfer of technical process know-how and specifications of the plant etc., was extended
till 8th September.
1996
- The first phase of grass root plant for manufacture of synthetic resins of various types was
commissioned in March at Mahad with a capacity of 7800 TPA. In the second phase, a loop

9
process plant for continuous emulsion polymerisation was to be commissioned.
- Introduction of several new products in technical collaboration with M/s. Crown Berger
Ltd., U.K.
- The Company allotted 61,17,200 No. of equity shares of Rs 10 each as bonus shares in the
ratio of 1:1. 3,800 shares were kept in abyeance due to dispute relating to the title of the
same.
1997
- 600 bonus shares allotted from Bonus Share Issue Suspence Account.
- The company has set up three wind mills of 230 kv each at Village Pransla near Dhank In
Gujarat.
- The Pedilite Industries Limited, manufacturer of the popular Fevicol brand of adhesives, is
actively scouting around for buyers for its chemical and specially resins business. The
company has been in talks with several international players in a bid to either sell off the
business or enter into a joint venture.
1998
- Triveni Chemicals, another group company was also merged with PIL in 1992. PIL's
consumer products division was set up in 1984.
- The Board of Directors gave their approvals for the amalgamation of PGP Engineering
works Ltd and Pidilite Finance Ltd. with the company itself effective 1-4-99. Also, Nebula
Chemicals Ltd. manufacturers of certain grades of adhesives, was to be amalgamated with the
company subject to necessary approvals.
- 2,800 bonus shares kept in abeyance allotted.
1999
- Pidilite Industries is re-engineering itself into a pure brand-oriented marketing company and
is hiving of its manufacturing facilities into a joint venture with a strategic partner.
2000
- The Company has acquired from Mahindra Engineering & Chemical Products Ltd (MECP),
subsidiary of Mahindra & Mahindra Ltd, their adhesives and sealants business consisting of
the brand M-Seal and Mr. Fixit along with goodwill of MECP's adhesives and sealants
business.
2001
-Pidilite Industries Ltd has posted 5.76% lower net profit at Rs.12.76cr for the second quarter

10
as compared to Rs.13.54cr in the same period last year.
2002
-Income Tax Department has issued a notice to Pidilite Industries Ltd, for an additional
income tax liability of Rs.16cr.
-Pidilite Industries has taken over an insulation tape brand called Steel Grip, for Rs.8cr from
Bhor Industries.
-Pidilite Industries is expanding its presence in Fabric care, car care and stationery segments
as part of its strategy to broadbase its produt portfolio.
2003
-Pidilite Industries has tied up with Chota Jadugar, the 3D movie distributed by Srinagar
films to help its new launch AcronRangeela Colours
-Pidilite unveils new liquid pipe sealant
-Pidilite unveils Fevicol Marine
2005
-Pidilite enters into snack market with 'Chikkers'
-Pidilite Industries has acquired Dubai-based company UCC, manufacturer of construction
chemical brand "Probuild" for an undisclosed amount.
-Company has splits its Face value of Shares from Rs 10 to Re 1
2006
- Pidilite Industries Ltd has informed that the Board of Directors of the Company at its
meeting held on October 17, 2006 has noted the resignation of Shri Amit Roy, Director and
Whole time director with effect from December 31, 2006.
-Pidilite Industries Ltd has informed that the Board of Directors of the Company at its
meeting held on December 02, 2006, Shri. V S Vasan has been appointed as an Additional
Director and also as Whole Time Director of the Company with effect from December 02,
2006.
2007
-Pidilite Industries Ltd has appointed Mr.Mandar M.Tambe as the Company Secretary,
Compliance Officer under Clause 47(a) of the Listing Agreement and Compliance Officer
under SEBI (Prohibition of Insider Trading) Regulations, 1992 in place of Mr.P.C.Patel, who
was holding the said position till 30/11/2007.
2008

11
- Pidilite Industries Ltd has appointed Shri. Bharat Puri as an Additional Director of the
Company with effect from May 28, 2008.
2009
- Pidilite Industries Ltd has informed that Shri. Debu Bhattacharya has been appointed as an
Additional Director of the Company with effect from February 26, 2009.
2010
-Pidilite Industries has given the Bonus in the Ratio of 1:1
-Ms. Savithri Parekh has been appointed as the Company Secretary and Compliance Officer.
2011
-PidiliteInds - Appointment of Foreign Currency Convertible Bonds (Share Allotment).
-Shri Sanjeev Aga has been appointed as an Additional Director of the Company.
2012
-Pidilite Industries Ltd has entered into a Joint Venture Agreement with Hybrid Coatings for
manufacture of construction chemicals and to establish a Joint Venture Company in India for
this purpose.
-Pidilite Industries Ltd has the name of the Registrar & Share Transfer Agent (RTA) of the
Company has been changed from "TSR Darashaw Limited" to "TSR Darashaw Private
Limited".
2013 -Pidilite Industries incorporated a subsidiary Company in the name of "Percept
Waterproofing Services Ltd" for the purpose of carrying on business of services relating to
waterproofing including consultancy and project based services etc.
2014 -Pidilite Industries Acquisition of Adhesive Business of Blue Coat Private Ltd. - Pidilite
Industries alongwith its Wholly owned subsidiary Pidilite International Pte Ltd. has
incorporated a pvt ltd subsidiary Company in Ethiopia in the name of "PIDILITE
CHEMICAL PLC" for manufacture of adhesives, mastics, paints, varnishes or similar
coatings, printing, writing and painting inks etc.
2015 -Pidilite Industries Limited along with its Wholly owned subsidiary Fevicol Company
Limited has incorporated a Company in the name of "WOOD COAT PRIVATE LIMITED"

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BOARD OF DIRECTORS:-

S.No Name Designation

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

COMPANY PROFILE:-

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

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

Pidilite has become the largest manufacturer of adhesive.

13
 Pidilite’s mainstay of earnings is consumer and industrial adhesives and sealants.

Fevicol is the company’s largest brand.

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

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

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

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

PRODUCTS:-

Year Month Product name Sales Sales unit of Sales value Product
s quantit measurement (Rs. Crores) Mix(%)
y
1703 12 Consumer Family 0 4366.9 82.41

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 Products
1703 12 Industrial Products 0 882.72 16.65
1703 12 Others 0 49.03 0.92

PRODUCT NAME OF PIDILITE INDUSTRIES LTD.

1. Fevicol

Fevicol is India’s Most Trusted Brand of Adhesives

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

2. Fevicol MR

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For The Love of Art And Craft

Explore your creative side

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

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

3. Fevistick

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

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

4. Fevigum

Fevigum – Synthetic Gum

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

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

5. Gluedrops

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 6. Rangeela:-

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

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

i) Rangeela tempracolor

ii) Rengeela paper gliter

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 iii) Rangeela Modelic dough clay

7) Hobby idea

Fulfilling Every Creative Need

A unique and complete experience for art & craft enthusiasts

There was a time when art & craft lovers across India had to make do with substandard
products to fulfill their creativity. Good quality products were either rarely available or

19
overpriced as these were mostly imported. To fulfill this gap, Pidilite launched Hobby Ideas
in February 2002 as India’s first chain of art, craft and hobby stores offering over 2500
products, expert advice and exciting workshops.

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

i. Fabric glue

ii. 3D Outliner

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 iii. Shilpkar

Clay Crafting Takes Innovative, New Shapes

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

iv. Glass color

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 v. Fevicryl color

Ideal For Painting On Fabric

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

b. Colouring books for adults

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23
 VISION AND MISSION

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

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

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COMPETITORS:-

Regional brands

Small players in unorganized sector

Large companies like jubilant organises

PIL Export Internationally To

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

STRENGTHS:-

25
 Pidilite’s min strength is their strong marketing advertising skills.

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

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

OPPORTUNITIES:-

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

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

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DISTRIBUTION STRUCTURE OF PIDILITE INDUSTRIES

Manufacturing Units

Mother Go dawns

C&F Agents Company Depots

WSS
(Whole sale Stockiest)

Wholesaler Retailer

27
TRANSPORTATION SYSTEM:-

Factory
(Maharashtra)

Trucks

Trucks Mother Godown Trucks

Kanpur Company Ghaziabad C&F

(Depot)
Trucks Agent Trucks

Wholesaler

WSS (42) WSS (46)

Retailer Retailer Retailer Retailer

DISTRIBUTORS ALL OVER IN PUNE

Criteria for selecting the distributors:

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

 He should have a godown

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  Vehicles

 Manpower

 Deposit for cases/crates at the rate of 200 each

 Liquid value

NAMS OF THE DISTRIBUTORS IN ALL OVER PUNE

1. Maxa

2. RJ

3. Shree Traider

4. Ratnamurthi

5. Chakradhar

6. Shree Ram agency

Working of distributors

The distributor first has to maintain the following

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

DISTRIBUTORS ROUTE PLANNING:

29
Distributors identify two routes they are,

 Potential route

 Non Potential route

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

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

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

The role of distributor in market:

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

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

2. He has to suggest the retailer about the stock needed

3. Convince him for purchase

4. Follow up and handle complaints

Support from the company to the distributor

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

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

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

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

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

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

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

32
DISTRIBUTION SYSTEMS:-

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

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

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

1) One level 2) Two level

Manufacturer Manufacturer

Retailer Distributor

Consumer Retailer

Consumer

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FUNCTIONS OF DISTRIBUTION CHANNELS:-

 Buying
 Servicing
 Carrying
 Inventory
 Selling
 Transporting
 Financing
 Promoting
 Negotiating
 Marketing Intelligence
 Information and Customer Education

OBJECTIVE OF DISTRIBUTION CHANNEL:-

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

REARCH METHODOLOGY:-

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

34
 The present study of markets in Pune is based on survey methods. In survey methods,
there are two types of survey. One is Census Method and another is Sampling Method. In this
sample survey methods I have taken only a small part of the whole and data collected from
the small part are made applicable to the whole i.e. I have taken Pune and some adjacent area
of Pune like Karve Nagar Pune City etc.

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

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

Research Method,

Survey Implementation

In the month of May, June, July survey was conducted and in the remaining period
implementation was carried out.

1) SURVEY:-

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

1. Karve nagar

35
 2. Sadashiv peth
3. ABC
4. F.C. Road
5. Aundh
6. Baner Balewadi
7. Pashan Bavdhan
8. Poud Road

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

2) IMPLEMENTATION:-

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

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

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

DATA SOURCES:-

Primary data collection involved distributors, retailers and consumers

36
Research Approaches : Survey

Research Instrument : Questionnaire

Sampling Plan

Sampling Unit Sales : Retail Outlet/shop

Yes 30%
Sampling size No 70% : 100

Sampling procedure : Convenient Sampling

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

1) Do you know about Pidilite as a company?

37
 Classes\Produc Fevicol Fevistick Fevigum Acryli Rangeel
ts color a
A class outlet 100 70 10 60 20
B class outlet 60 40 5 15 10
C class outlet 80 20 5 5 5

Sales

30.00% Yes
No

70.00%

Interpretation

The above information received from the survey

We observed that only 30% of people knew about Pidilite.

2) Which Pidilite product do you sell in your store?

38
 100%
90%
80%
70%
60% rangeela
Acryli color
50%
Fevigum
40% Fevistick
30% Fevicol
20%
10%
0%
A class outlet B class outlet C class outlet

Interpretation

The above chart shows the A class outlet sell fevicol 100%, fevistick 70%,
fevigum10%, A. colour 60%, rangeela 20% and B class outlet sell fevicol
60%, fevistick 40%, fevigum 5%, A. colour 15%, rangeela 10% and C
class outlet sell fevicol 80%, fevistick 20%, fevigum 5%, A. colour 5%,
rangeela 5%

3) How is the relationship with the distributor?

Opinion Frequency
Good 99
Bad 1
Total 100

39
 Frequency

Good
Bad

Interpretation

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

4) How many times the distributor visits outlets per week.

Frequency
Once 7
Alternativ 47
e
Daily 46
Total 100

40
 Frequency

Once
Altenative
Daily
Other time

Interpretation

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

5) How many times he is expected to visit.

Frequency
Once 3
Alternative 36
Daily 61
Total 100

41
 Frequency

Once
Alternative
Daily

Interpretation

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

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

6) Are distributors satisfied with the profit margins they are getting?

Distributor
Highly Satisfied 40
Moderately 35
Satisfied
Less Satisfied 25

42
 Distributor

Highly Satisfied
Moderately Satisfied
Less Satisfied

Interpretation

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

7) Which type of delivery channel you would prefer?

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

43
 No. of responses
60
50
40 No. of responses
30
20
10
0
0 level 1 level 2 level 3 level

Interpretation

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

8) When a customer comes to your shop which brand does he/she demands?
(Rank them)
Stationar Gen. Super
y shop store Market
Fevicol 40 50 60
Fevistick 20 15 30
Acrylic 20 10
Colour

44
 Rangeela 10 10
Other 10 15 10

100%
90%
80%
70%
60%
50%
40% Super Market
30% Gen. store
20% Stationary shop
10%
0%
l ck ur r
co la he
vi sti lo ee Ot
Fe vi o g
Fe i cC Ra
n
r yl
Ac

Interpretation

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

9) Which company’s Acrylic color’s demanded most?

Deman
d
Pidilte 55
Camel 40
Other 5

45
 Sales
5

Pidilte
Camel
40 Other
55

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

10) On what basis the distributors get the target for the sales from the Pidilite?

Distributor
Daily 10
Weekly 10
Brand Wise 50
Sales Wise 30

46
 Distributor
30 10 10

Daily
Weekly
Brand Wise
Sales Wise

50

Interpretation:

The above survey was done from various authorised distributors of the Pidilite. Out of
which maximum distributors get the target on ‘Brand’ basis which is 50% and second most
get the 30% on ‘sales’ basis. Vary rare distributors were there who get the targets on ‘Daily’
i.e. 10% and ‘Weekly’ basis i.e. 10%.

11) How the dealers / distributors affect the price of products?

No of responses
High Costs 45
Low Costs 35
Remains Equal 20
Interpretation:

From the survey it had cleared that cost of the product greatly affect the distributors. About
the 45% distributors affect negatively towards the sale of that product. Where the 35% felt that cost
not affect the sale. In which 20% felt it remains equal.

47
12) How effectively your distributors help in promoting the product by way of
Particulars Highly effective Moderately effective Less effective

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

No. of Responses
100%
80%
60%
40%
20%
0% No. of Responses

From the above table shows the

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

48
 A class B class C class
Fevicol 100 80 80
Fevistick 70 60 50
Fevigum 10 30 5
Acrylic 100 50 0
Colour
Rangeela 50 40 0

13) Which Pidilite product do you sell in your store

100
90
80
70
60
50
40 A class
30 B class
20 C class
10
0
l ck r la
co um ou ee
Fe
vi iv sti v ig
Co
l
ng
Fe Fe ic Ra
r yl
Ac

49
Interpretation

From the above table most of the store sells Fevicol is one of the Pidilite brand
and Most of the Pidilite Product sell in a A class store then B class

No of
Responses
Daily 25
Alternative 5
Weekly 50
14) Do you Self 20
receive the delivery of Pidilite products
in following terms?

Respondents
50
45
40
35
30 Respondents
25
20
15
10
5
0
Daily Alternative Weekly Self

Interpretation

50
 25% Respondents receive the delivery of Pidilite Product is daily

5% Respondents receive the delivery of Pidilite Product is Alternative

50% Respondents receive the delivery of Pidilite Product is Weekly

20% Respondents are Self

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

No of
response
s
Yes 70
No 30

No of responses

Yes
No

Interpretation

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

51
16) How much are you satisfied with the Pidilite products?

Total
Reaspons
Fully satisfied 85
Partially satisfied 5
None of the above 10

Total Reaspons
90
80
70
60
50
40 Total Reaspons
30
20
10
0
ve
d

ed
fie

bo
sfi
tis

ea
ati
sa

ys

th
ly

of
l
tia
l
Fu

ne
r
Pa

No

52
The above data shows the reviews of the clients regarding the Pidilite products. The good
thing about the products is 85% clients are satisfied.

17) Any suggestion for improving stock for high sales?

No of
responses
To introduce scheme chart 40
visit to regular 20
Modification in any 10
products
Develop designable 30
product

No of responses
40
35
30
25
20
15
10
5 No of responses
0
rt l ar ts ct
ha gu uc du
ec re ro
d
pr
o
he
m
i tt
o yP bl
e
sc vi
s an a
ce in gn
on si
du de
tro
cati op
in i fi vl
To od De
M

53
 The above Chart it clearly shows that the 40% To Introduce Scheme chart
20% Visit to regular 10 % Modification In any Products and 30 % Develop designable
product

-: SCOPE & LIMITATIONS

OF PROJECT:-

54
ORGANIZATIONAL POINT OF VIEW:-

 Helps the company to know the current market position.

 Helps the company to improve its service as per market requirement.
 Helps in the analysis of demand in the market.
 Helps to know that consumers are satisfied with the product or not.
 Helps in the analysis of competition in the market.
 Helps in the planning of marketing strategies for the product.
 Helps in marketing sales forecasting.

55
RESEARCHER POINT OF VIEW:-

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

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

56
LIMITATION:-

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

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

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

57
FINDINGS:-

1. Most of the outlets are shared.

2. The basic problem is that the supply from the plant to the depot and then to the
distributors takes a long time due to which the distributors are not in the position the
supply the required quantity to the retailers.

3. On an average the sales per week of the retailers is between 0-20 cases.

4. The sales people and the distributor have maintained good relationship with the
retailers.

5. On an average the expected visits are daily.

58
SUGGESTIONS:-

1. The company must have a super stockiest in Pune city so that this can not only the
need of the Pune market but also the surroundings places.

2. The transportation department should concentrate on its faster delivery of products.

3. The company has to convert Fevicol outlets into Fevicol MR outlets by giving them
promotions like schemes, gifts, proper supply.

4. The company has to start its plant in Hospet as soon as possible so that there will be
no problem to the distributors as well as the retailers with respect to the stock.

5. The company has to put on their best efforts to convert the76% shared outlets into
Hobby idea outlets by giving promotional activities and also by on time delivery of
stocks which plays a very important role.

6. 36% of the retailers expect alternative days visits instead of daily visits, the outlets
which are non potential outlets expect the distributor to visit once a week therefore the
company has to supply accordingly.

7. To make the satisfaction level of the retailers to 100% the company has to supply
properly to the remaining 34% outlets surveyed.

59
LEARNING OF THE PROJECT:-

By the help of project we come to know about the channel of pidilite industries ltd.
How the retailer of pidilite products and completions of channel.

60
CONCLUSION:-

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

The distribution channel of Pidilite Industries is effective

61
BIBLIOGRAPHY:-

www.google.com

www.Pidilite.com

www.wikipwdia.com

BOOKS:-

a. White book in marketing

b. Marketing Management
c. Marketing Research

62
QUESTIONNAIRE:-
1) Do you know about Pidilite as a company?
a) Yes
b) No
2) Which Pidilite product do you sell in your store?
a) Fevicol
b) Fevistick
c) Fevigum
d) Acrylic Colour
e) Rangeela
3) How is the relationship with the distributor?
a) Good
b) Bad
4) How many times the distributor visits outlets per
week.
a) Once
b) Alternative
c) Daily
5) How many times he is expected to visit.
a) Once
b) Alternative
c) Daily
6) Are distributors satisfied with the profit margins
they are getting?
a. Highly Satisfied
b. Moderately Satisfied
c. Less Satisfied

7) Which type of delivery channel you would prefer?

a) 0 level
b) 1 level
c) 2 level
d) 3 level
8) When a customer comes to in your shop which
brand does he/she demand.
a) Fevicol
b) Fevistick
c) Acrylic colour
d) Rangeela
e) Other
9) Which company’s acrylic colour demand most?
a) Pidilite

63
 b) Camel
c) Other
10) The company gives target to the distributor and
these distributor with help of sales executives break
the target into.
a) Daily
b) Weekly
c) Brand Wise
d) Sales Wise
11) How the dealers / distributors affect the price of
products? (Check one)
a) Costs High
b) Costs Low
c) Remains Equal

12) How effectively your distributors help in promoting

the product by way of Particulars Highly effective
Moderately effective Less effective
a) Visibility of product
b) Conducting dealers meets
c) Road shows & exhibitions
13) Which Pidilite product do you sell in your store?
a) Fevicol
b) Fevistick
c) Fevigum
d) Acrylic Colour
e) Rangeela
14) Do you receive the delivery of Pidilite products in
following terms?
a) Daily
b) Alternate
c) Weekly
d) Self
15) Do you receive the delivery of Pidilite products in
time?
a) Yes
b) No
16) How much are you satisfied with the Pidilite
products?
a) Filly satisfied
b) Partially satisfied
c) a or b

64
 d) None of the above

17) Any suggestion for improving stock for high sales?

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

65