Sales and Distribution Management

(GROUP PROJECT)

Project ASSIGNMENT- retail

management

SUBMITTED BY:-

MBA-II, SECTION-C

GROUP-5

AMRITA NANDI-18202148

ANKIT KUMAR NEPAK-18202151

Aradhana sahoo-18202153

Raksha-18202180

Sneha KHANDELWAL-18202195
 ACKNOWLEDGEMENT

“It is not possible to prepare a project assignment report without the assistance
and encouragement of other people. This one is certainly no exception.”

On the very outset of this report, we would like to extend our sincere and heartfelt
obligation towards all the personages who have helped us in this endeavour.
Without their active guidance, help, cooperation and encouragement, we would
not have made headway in the project.
We are extremely thankful and pay our gratitude to our faculty PROF.
JOYDEEP BISWAS for his valuable guidance, support and providing
encouragement. No words can describe his dedication and effort. His continuous
effort and supervision was the major driving force for us.
We extend our gratitude to KIIT School of Management (KSOM), KIIT
UNIVERSITY, BHUBANESWAR for giving us this opportunity.
At last but not least gratitude goes to all the retailers who spend their valuable
time and shown their interest to give us information about channel management
with respect to retailer operations and transaction.
 OBJECTIVE
1. To gain knowledge and understanding of channel management with
respect to retailer operations.
2. To know different distribution policies related to brands/SKUs of specific
category.
3. Understanding retailer’s operation and transaction related to distributor and
wholesaler operation.
4. Different problems and challenges faced by the retailers related to
distribution.
INTRODUCTION
Retail:-
Retail consist of sale of goods or merchandise from a fixed location, such as a
department store, boutique or by mail, in small or individual lots for direct
consumption by the purchaser. In commerce, a “retailer” buys goods or
products in large quantities from manufacturers or importers, either directly
or through a wholesaler, and then sells smaller quantities to the end user. Retail
establishments are often called shops and stores .Retailers are at the end of the
supply chain. Manufacturing marketers see the process of retailing as a
necessary part of their overall distribution strategy.
Shops may be on residential streets, shopping streets with few or no houses or
in a shopping mall.
Retail involves the sale of goods from a single point (malls, markets,
department stores etc.). In simpler term, retailing is nothing but transaction of
goods between the sellers and the end user as a single unit (piece) or in small
quantities to satisfy the need of the individual and for his direct consumption.
Distribution Channel:-
A distribution channel is a chain of business or intermediaries through which
a good or service passes until it reaches the final buyer or the end consumer.
Distribution channel can include wholesaler, retailers, distributors etc.
It is a Set of interdependent organizations involved in the process of making
a product or service available for use or consumption. These
interdependent organizations display a degree of homogeneity in terms of
trade behavior and the type of consumers they serve.
 Channel Management-(Information/data flow)

COMPANY

SELL-IN/PRIMARY (INTERNAL)

DISTRIBUTOR/WH
OLESALER

(PROJECT IS GIVING INFORMATION ABOUT THIS DATA) SELL-THROUGH/SECONDARY (INTERNAL)

RETAILER

SELL-OUT/TERTIARY (EXTERNAL)

END CONSUMER
 DISTRIBUTION CHANNEL

MOTHER
FACTORY C & F AGENT
GODOWN

INSTITUTIONAL SALES
MODERN TRADE

DISTRIBUTOR

ONLINE
STOCKIEST
RETAILER
TOWN RURAL
WHOLESALES WHOLESALES

URBAN RETAILS CONVENIENCE RURAL RETAILERS

END CONSUMER
 PROCESS

Here in this project we have to know the channel management with respect to
understanding retailer’s operation and transactions related to distributor and
wholesaler interactions for different brands/SKUs of specific category.
CATEGORY: - CHOCOLATES AND CONFECTIONARY
We had visited different retail stores to gain experience about the top 3 selling
brands of chocolate and confectionary, what are the key reason people buying
these 3 brands and what are their distribution policies with respect to various
aspects related to distributor and wholesaler interaction with retailer.
Here are the different information about retailer operation and transaction
related to distributor and wholesaler interaction.
SHOP-1:-(Variety store)
 Three selling brands- Cadbury, Nestle, Amul
 Reasons for buying- Good quality products, well-known brand, least
damaged products etc.
 Distributor Margin-9-10%
 Delivery Van-7 days
 Service Frequency- 7 days
 Credit facility-7 days after the products are delivered
 Return of damaged Foods-15 days/2 weeks
 Display of key products-Preference given to Cadbury products, Nestle
products.
 Pricing- Cadbury products (varies from RS 5 to RS 180), Nestle products
(varies from RS 5 to RS 100) and Amul (varies from RS 100 and RS 125).
SHOP-2:- (Pan Outlet)
 Three selling brands-Perfetti Van Melle (Mentos, Happydent, Centre
fresh), Pulse (Pass Pass), Nestle.
 Reasons for buying- small outlet, especially children like candies and
toffees, less price, No need of refrigerator to keep and basically brings
nostalgia feelings.
 Distributor Margin-7-8%
 Service Frequency-Dealer delivers the product to this outlet daily and
retailer pays its payment according to its product at that time only.
 Credit facility- No credit facility as the order is not bulk in quantity. So
when there is a need only the retailer buy that product by paying money at
that time.
 Return of damaged Foods-as they don’t order too much and don’t keep the
product for the future, so there is a fewer chances of damage if in case they
have got any damaged product then the dealer has no issue to take those
products back and the retailer gets the moneyback or can get new fresh
products.
 Display of key products-Preference given to toffees and candies and less
to the Cadbury and Nestle products due to comparatively less selling of
those premium products.
 Pricing-Mentos, Centerfresh, Happydent, pulse (available in jars), Cadbury
products (Varies from RS 10 to RS 40) and Nestle products (Varies
from RS 10 to RS 50).
SHOP-3: -(Grocery outlet)
 Three selling brands-Cadbury, Nestle (KitKat, Milkybar), and Perfetti van
melle (Centre fresh).
 Reasons for buying-Impulse purchase, appreciate the convenience, trust.
 Retailer Margin- 8-10%
 Delivery Van-2 weeks
 Service Frequency-2 weeks
 Credit Duration-2 weeks
 Return of damaged Foods-15 days(complain given through phone about
damage product)
 Display of key products-Preference given to Cadbury products, Milkybar
and KitKat.
 Pricing- Cadbury (varies from RS 5 to RS 100), Nestle KitKat (varies from
RS 5 to RS 150), Nestle Milky bar (Varies from RS 5 to RS 45), and Centre
Fresh (available in jars).

SHOP-4:- (Grocery store)

 Three selling brands-Cadbury, Nestle, Pulse (Ds group, marketed by Pass
Pass.
 Reasons for buying- well-known brand, affordable price, good quality, Gift
purpose.
 Retailer Margin-7-8%
 Inventory level-50 units of each brand( Maintaining separate store room
for keeping stock)
 Delivery Van-1 week
 Service Frequency-Give the product in the store itself and whenever
required they provide immediately.
 Credit facility-2 weeks
 Return of damaged goods- 15 days(complaint given through the phone),
for expiry products-(For 12 months of self-life(Ex-Cadbury),In 10 months
they take the products before expiry)
 Display of key products-Display products in cooling freeze, container, and
racks.
Preference given to Cadbury Products and Nestle (Milkybar).
 Pricing- Cadbury (Varies from RS5 to RS200), Nestle (varies from 10 to
150) and pulse (available in jars).

SHOP-5:- (Grocery Store)

 Three selling brands-Cadbury, Nestle, Dabur(Hajmola), Pulse (Pass Pass)
 Reasons for buying- Trust, well-known brand, good quality.
 Retailer Margin- 12%
 Inventory level-25000 units (40% Cadbury, 40% nestle, 5% pulse, 5%
hajmola, 5% other brand) (Own godown/separate store room for keeping
stock) (They have 4 stores of their own).
 Service Frequency-15 days
 Credit facility-15 days
 Return of damaged Foods-15 days(complaint given through the phone), for
expiry products-(For 12 months of self-life(Ex-Cadbury),In 10 months
they take the products before expiry and give some extra product/some free
products.)
 Display of key products-Cooling freeze, containers are used for Display of
Key Products.
Preference given to Cadbury Products and Nestle (Milkybar, KitKat).
 Pricing- Cadbury (Varies from RS5 to RS200), Nestle KitKat (varies from
10 to 150), Milkybar (varies from RS 5 to RS 45) and hajmola and pulse
(available in jars).
SHOP-6:- (Variety Store)
 Three selling brands- Cadbury, Nestle(KitKat), Snickers
 Reasons for buying- Least damaged products, good quality, Impulse
products, purpose of gifting someone.
 Retailer Margin-9-10%
 Delivery Van-7-10 days
 Service frequency-7 days.
 Credit facility-4 days after the products are delivered.
 Return of damaged Foods- within a week/2 weeks.
 Display of key products-Preference given to Cadbury products, milkybar,
perk, five star.
 Pricing- Cadbury (varies from RS 5 to RS 150), Nestle KitKat (varies from
RS 5 to RS 150), Snickers (varies from RS 20 to RS 35).
SHOP-7:- (Grocery store)
 Three selling brands-Cadbury, Nestle, Parle.
 Reasons for buying-Affordable price, high consumer preference, Trust,
good quality.
 Retailer Margin-10%
 Delivery Van-7 days
 Service Frequency-7 days
 Credit facility-7 days.
 Return of damaged Foods-2 weeks
 Display of key products- Display products by using cooling freeze and
containers.
Preference given to Cadbury products, Nestle products and Ferrero Rocher
 Pricing- Cadbury (varies from RS 5 to RS 200), Nestle (varies from RS 5
to RS 150), and parle (varies from RS 10 to RS 50).

SHOP-8 :-( Kirana Outlet)

 Three selling brands-Nestle (KitKat, Milkybar), Cadbury (Dairymilk, perk,
fuse), Mars (snickers).
 Reasons for buying- well-known brand, trust, affordable price etc.
 Retailer Margin-7-8%.
 Delivery Van-15 days
 Service Frequency-15 days
 Credit facility-They have to pay all the order payment before the order.
They preferred to pay the payment by cheque as they order the products in
a bulk amount because the wholesaler delivers the product 15 days of one
delivery
 Return of damaged Foods-If the product will get expired in that case only,
they can exchange or return the product not any other case.
 Display of key products- Preference is given to Cadbury products and
Nestle products.
 Pricing- Cadbury (varies from RS 5 to RS 200), Nestle (varies from RS 5
to RS 150) and snickers (RS 40).

SHOP-9:- (Variety Store)

 Three selling brands-There are different chocolate brands available but
Cadbury products, Nestle products and perfetti van Melle (Mentos,
Happydent, Centrefresh) are more demanding.
 Reasons for buying-well-known brand, least damaged products, trust etc.
 Distributor Margin-8-9%
 Delivery Van-15 days
 Service Frequency-15 days
 Credit facility-They have to pay in advance for their products.
 Return of damaged Foods- If the product will get expired in that case only,
they can exchange or return the product not any other case.
 Display of key products-preference given to Cadbury and nestle products,
other products like toffees and candies are stored in jars.
 Pricing- Cadbury (Varies from RS5 to RS200), Nestle (varies from 10 to
45) and pulse, Mentos, happydent, centrefresh, etc. (available in jars).

SHOP-10:- (Grocery store)

 Three selling brands-Cadbury (Dairymilk, perk, fuse), Nestle (Milkybar,
KitKat), snickers (Mars).
 Reasons for buying- High demanding due to trust, affordable price, well-
known brand.
 Retail Margin-7-8%
 Delivery Van-1 week
 Credit facility-1 week
 Return of damaged goods-15 days(complain given through phone)
 Service Frequency-1 week
 Display of key products-preference is given to Dairy milk and nestle
products.
 Pricing- Cadbury (varies from RS 5 to RS 150), Nestle (varies from RS 5
to RS 100) and snickers (RS 40).
CONCLUSION:-
By doing this project we gain an understanding about this chocolate and
confectionary segment/category’s retail operations and transaction related to the
wholesaler or distributor. We also gain information about many challenges which
a retailer face from wholesaler/distributor while doing this project. By interacting
with different retailers we also knew about the whole channel management
system and how each member of this channel can affect the whole system. We
got to know also about the buying behaviour of different customer and how their
decisions and purchases effect the demand of the specific product especially in
our chocolate & confectionary category.