A PROJECT REPORT

ON
“A Study of Effectiveness of Distribution Channel of AMUL Product”
For
“GCMMF (AMUL)
By

“Mayank Singh”
Under the guidance of
“PROF. Shraddha kulkarni”

Submitted to

“INTERNATIONAL INSTITUTE OF MANAGEMENT STUDIES”

In partial fulfilment of the requirement for the Award of Post

Graduate Diploma in Management
(PGDM)
2019-21

DECLARATION

I Mayank Singh, hereby declare that the presented report of internship is uniquely prepared by
me after the completion of 45 days work at “AMUL” PUNE.
I also confirm that, the report is only prepared for my academic requirement and not for any
other purpose. It might not be used with the interest of opposite party for the corporation

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ACKNOWLEDGEMENT

It gives me immense pleasure to express my sincere gratitude to all the helping hands who have
guided me in the completion of this project. It was a great learning experience for me to work
on my project. As student of International Institute Of Management . I vaibhav sharma got
an opportunity of doing work on project. I took up the project with strong determination and
tried to put in the best of my efforts.

2
The project done by me is about “A Study of effectiveness Of Distribution Channel Of
AMUL Product” And this project could not have been completed without the help of my
faculty guide Prof. Anil Verma and my industry guide Mr. Abhishek Sir working as a Area
Sales Manager for AMUL and Mr. Siddheshwar Sir Working as an ASM of AMUL.

Mayank Singh.

EXECUTIVE SUMMARY

A distribution channel means the chain of business or intermediaries through which a good or

service passes until reaches the end consumer” Success of each company lies on various
aspects, among these the distribution channel is the most important one.

This project report is on the “The Study Of Effectiveness Of Distribution Channel Of AMUL
products at GCMMF(AMUL)”

3
Ultimate objective of the every organization is to satisfy the needs and wants of their customer
in which distribution channel plays a vital role.
The study will be done by taking 150 sample size. The Questionnaire and personal interview
on the based questions will be taken from the Wholesalers, Retailers, Salesman and customers.

The study helps the organisation in the following ways-

To know performance of existing distribution channel.

To know their retailers and wholesalers satisfaction.
To fill the gap if any,

INDEX
S.No Contents Page No

1 Introduction 06

4
 2 Objectives of the Study 08

3 Company Profile 10

4 Review Literature 22

5 Research Methodology 23

6 Data Analysis 26

7 Findings 30

8 Suggestions 30

9 Conclusions 31

10 Limitations 32

11 Bibliography 33

CHAPTER-1.INTRODUCTION
“ A Distribution channel means the chain of business or intermediaries through which a good or
service passes until reaches the end consumer.”
Success of each company lies on various aspects, among these the distribution channel
is the most important one. Distribution channel is a chain of intermediaries; each passing the
product down the chain to the next organisation, before it finally reaches the consumer or the
end – user. This process is known as the ‘distribution chain’ or the channel.
Each of the elements in these chains will have their own specific needs, which the producer
should considers, along with those of the all - important end – user or consumer. Each company

5
had their own distribution channel for their product marketing, it differ from other companies.
Every companies wants to know effectiveness of distribution channel of its product. If the
distribution channel is not effective, the company cannot perform very well in the market. For
better sales of its product in the market, the company must formulate different strategies for the
distribution channel. A company can coordinate and formulate different activities in the
distribution channel.

AMUL is an Indian cooperative dairy company, based at Anand in the state of Gujarat. Formed
in 1956, it is a cooperative brand managed by a cooperative body, the Gujarat Co-operative
Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million milk
producers in Gujarat.
Amul spurred India's White Revolution, which made the country the world's largest producer of
milk and milk products.
Amul was spearheaded by Tribhuvandas Patel under the guidance of Sardar Patel. As a result,
Kaira District Milk Union Limited was born in 1946. Tribhuvandas became the founding
chairman of the organization and led it until his death. He hired Dr. Verghese Kurien in 1949.
He convinced Dr. Kurien to stay and help with the mission.

Distribution channels are all the sub-marketers or intermediate marketers of the company. For
example: selling agents, wholesalers, retailers, authorized representatives, and showrooms etc;
are basically distribution channels.

The distribution channel for a particular product :

1. Manufacturer - Wholesaler - Retailer – User

2. Manufacturer - Distributor - Wholesaler - Retailer -User

The locations which I had covered are – Aundh and Kothrud area.

6
A distribution channel is a chain of businesses or intermediaries through which a good or
service passes until it reaches the final buyer or the end consumer. Distribution channels can
include wholesalers, retailers, distributors, and even the Internet.

A distribution channel, also known as placement, is part of a company's marketing strategy,

which includes product, promotion, and price.

A distribution channel is the path by which all goods and services must travel to arrive at the
intended consumer. Conversely, it also describes the pathway payments make from the end
consumer to the original vendor. Distribution channels can be short or long, and depend on the
amount of intermediaries required to deliver a product or service.

CHAPTER-2 OBJECTIVES OF THE STUDY

 The main objective of this project is to find out the effectiveness of distribution channel
in the organisation.
 To find out Product availability in store on time or not.
 To find out about the supply chain of AMUL products from the retailers.
 To check the distribution service of AMUL products.
 To check the services for the AMUL perishable products.
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 IMPORTANCE OF THE STUDY-

Project is important for the organization, because it reflects the picture of effectiveness of
Distribution Channel and concentrates on the satisfaction of Distribution intermediaries and
strengths and weakness of channel. Distribution channel play very vital role in the AMUL
industry. To provide fresh and good quality product up to the customer in their required needs
and delivery on time is the challengeable task for the organization.

Project work and findings are important for the organization because of following-
 It reflects the picture of effectiveness of distribution channel net work.
 It concentrates on the problems of distributors, wholesalers, retailers and customers.
 It also explains the strength and weakness of the distribution channel.
 It helps the organization to manage the distribution channel members and for designing
motivational schemes to increase the morale of the sells workforce.

NEED FOR THE STUDY_

India is having a huge number of customers and to fulfilment their needs on the same time is
also a difficult task for every organization. Every organization maintain some strategies to
solve all customer problems as well as problems arises in very organization. All the chains are
linked up with the distribution channel because it’s only source to deliver all the products to the
end – users. The need to study the distribution channel is to know whether the delivery,
availability, quality, quantity of any product are delivered safely to the customers or not and to

check the satisfaction of every intermediaries of the channel, to find the problem if any, and to
inform to the organization about the details of the distribution channel.

SIGNIFICANCE OF THE PROJECT WORK-

They create exchange efficiency by reducing the number of contacts needed. The distribution
channels can perform many functions like transportation, storage, selling, scale of operation
and advertising better than the manufacturers. By this study we can get to know all the
problems with the distributions channels or with the intermediaries and by knowing the

8
problem we can discuss it with the organization so that we can solve the problem by finding
any alternate solution .

CHAPTER-3 COMPANY PROFILE

Milk, The inspiration behind a revolution

History-

Over seven decades ago the life of a farmer in Kaira was very much like that of farmers anywhere
else in India. His income was derived almost entirely from seasonal crops. Many poor farmers
faced starvation during off-seasons. Their income from milch buffaloes was undependable. The

9
milk marketing system was controlled by contractors and middlemen. As milk is perishable,
farmers were compelled to sell their milk for whatever they were offered. Often they had to sell
cream and ghee at a throwaway price.
They were in general illiterate. But they could see that the system under which contractors could
buy their produce at a low price and arrange to sell it at huge profits was just not fair. This became
more noticeable when the Government of Bombay started the Bombay Milk Scheme in 1945. Milk
had to be transported 427 kilometers, from Anand to Bombay. This could be done only if milk was
pasteurized in Anand..

After preliminary trials, the Government of Bombay entered into an

agreement with Polsons Limited to supply milk from Anand to Bombay on a regular basis. The
arrangement was highly satisfactory to all concerned – except the farmers. The Government found
it profitable; Polsons kept a good margin. Milk contractors took the biggest cut. No one had taken
the trouble to fix the price of milk to be paid to the producers. Thus under the Bombay Milk
Scheme the farmers of Kaira District were no better off ever before. They were still at the mercy of
milk contractors. They had to sell their milk at a price the contractors fixed. The discontent of the
farmers grew. Sardar Patel reiterated his advice that they should market their milk through a co-
operative society of their own. This co-operative should have its own pasteurization plant. His
advice was that the farmers should demand permission to set up such a co-operative. If their
demand was rejected, they should refuse to sell their milk to middlemen. Sardar Patel pointed out
that in undertaking such a strike there should be some losses to the farmers as they would not be
able to sell their milk for some time. If they were prepared to put up with the loss, he was prepared
to lead them. The farmers’ deputation readily accepted his proposal.
Sardar then sent his trusted deputy, Mr. Morarjibhai Desai, to Kaira District to organize milk co-
operative – and a milk strike if necessary. Mr. Desai held a meeting in Samarkha village on January
4, 1946. It was resolved that milk producers’ co-operative societies should be organized in each
village of Kaira District to collect milk from their member-farmers. All the milk societies would
federate into a Union which would own milk processing facilities. The Government should
undertake to buy milk from the Union. If this wasn’t done, the farmers would refuse to sell milk to
any milk contractor in Kaira District.

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 An assured market proved a great incentive to the milk producers in
the district. By the end of 1948, 432 farmers had joined village societies, and the quantity of
milk handled by the Union had increased to 5000 liters a day. In the early stages, rapid growth
brought in its wake serious problems. Their solution provided the stimulus for further growth.
For example, as the co-operative movement spread in the district, it was found that the Bombay
Milk Scheme could not absorb the extra milk collected by the Union in winter, when buffaloes
yielded an average of 2.5 times their summer yield. Thus by 1953, the farmer-members had no
regular market for the extra milk produced in winter. They were again forced to sell a large
surplus at low rate to middlemen.

Amul cooperative registered on 14 December 1946 as a response to the exploitation of

marginal milk producers by traders or agents of the only existing dairy, the Polson dairy, in the
small city distances to deliver milk, often went sour in summer, to Polson. The prices of milk
were arbitrarily determined. The government had given monopoly rights to Polson to collect
milk from Kaira and supply it to Mumbai city.

Amul celebrated its 25th Anniversary with Morarji Desai, Maniben Patel and Verghese Kurien.

The cooperative was further developed and managed by Dr. Verghese Kurien with H.M.
Dalaya. Dalaya's innovation of making skim milk powder from buffalo milk (for the first time
in the world) and a little later, with Kurien's help, making it on a commercial scale, led to the
first modern dairy of the cooperative at Anand, which would compete against established
players in the market. Kurien's brother-in-law K.M. Philip sensitized Kurien to the needs of
attending to the finer points of marketing, including the creation and popularization of a brand.
The trio's (T. K. Patel, Kurien and Dalaya's) success at the cooperative's dairy soon spread to
Anand's neighbourhood in Gujarat. Within a short span, five unions in other districts –
Mehsana, Banaskantha, Baroda, Sabarkantha and Surat – were set up, following the approach
sometimes described as the Anand pattern.
In 1970, initiated White Revolution of India, as it help create, Gujarat Co-operative Milk
Marketing Federation Ltd., which now overlooks Amul, in 1973, and today, it is the second
best dairy in India. To combine forces and expand the market while saving on advertising and
avoid competing against each other, the GCMMF, an apex marketing body of these district

11
cooperatives, was set up in 1973. The Kaira Union, which had the brand name Amul with it
since 1955, transferred it to GCMMF.
In 1999, it was awarded the "Best of all" Rajiv Gandhi National Quality Award.
Technological developments at Amul have subsequently spread to other parts of India.

The GCMMF is the largest food products marketing organisation of India. It is the apex
organisation of the dairy cooperatives of Gujarat. It is the exclusive marketing organisation for
products under the brand name of Amul and Sagar. Over the last five and a half decades, dairy
cooperatives in Gujarat have created an economic network that links more than 3.1 million
village milk products with millions of consumers in India.
On September 30, 2018, Prime Minister Narendra Modi inaugurated Amul's chocolate plant in
Mogar, Anand near their headquarters.

Dr. Verghese kurien.

Chairman Of AMUL-
Congress leaders Ramsinh Parmar and Jetha Bharwad got unanimously elected as chairman
and vice chairman  of Gujarat Cooperative Milk Marketing Federation Limited (GCMMF), the
marketing body of the 'Amul' brand of milk and other dairy products. , during a specially
called board meeting in Anand..

12
 Mr. Ramsinh Parmar(chairman)

VISION

Our Vision is not just to be rated among the top 5 brands of

India in interior Field but, more importantly to strike to attain the leadership position in making
our people aware to protect & save the nature by using plywood and related products for their
wood work.

MISSION-

13
 Our mission is to manufacture world class products of
outstanding qualities providing related services and solutions to our client while utilizing latest
technologies, highest business standard, work ethics Corporate Governance so we can make
every customer smile.

QUALITY POLICY
We strive to achieve this by, Improving raw milk quality, Applying innovative technology for
manufacturing food products, Employing quality and food safety management practices to,
manufacture food products in a eco-friendly environment. From the strength of Total Quality
Management initiative Amul went on to implement Quality Management System of
International Standard. Amul has been the first dairy in India to get accredited with certification
of ISO 2200:2005 & ISO 9001 for its operations and plants. Further Amul has set an example
that village Dairy Co-operative Societies could also achieve this milestone as these societies are
accredited with ISO 9001:2000 – a remarkable achievement in the history of India.

AMUL FRESH Products –

14
AMUL FROZEN PRODUCTS:

15
 

AMUL DAIRY PRODUCTS:

16
.Competitive analysis

1- MOTHER DAIRY
2- CHITALE.
3- KATRAJ
4- BRITANNIA
5- GOKUL
6- GOWARDHAN
17
 7- MILKY MIST
8- SPURTI
9- NESTLE

STATISTICAL DATA-

TURNOVER--The Amul group's turnover exceeded Rs 45,000 crore, which is also 13%
higher than last year. Amul launched value-added products such as flavoured milk, chocolates,
fruit-based Amul Tru, camel milk and an entire new kulfi range in the previous financial year.
It is the exclusive marketing organisation for products under the brand name of Amul and
Sagar. Over the last five and a half decades, dairy cooperatives in Gujarat have created an
economic network that links more than 3.1 million village milk products with millions of
consumers in India.

SALES--Gujarat Co-operative Milk Marketing Federation Ltd., which markets the popular
Amul brand of milk and dairy products has registered a provisional turnover of Rs. 33,150
Crores for the financial year 2018-19 which ended on 31st March 2019. The sales turnover
achieved by Amul Federation is 13% higher than the previous financial year. Amul Federation
has been achieving a Compound Annual Growth Rate (CAGR) of more than 17.5% since last 9

18
years because of higher milk procurement, continuous expansion in terms of adding new
markets, launching of new products and adding new milk processing capacities across India.
The provisional unduplicated group turnover of Amul Federation and its 18 member unions has
crossed Rs. 45,000 Crores which is also 13% higher than last year. The 18 member Unions of
Amul Federation with farmer member strength of more than 36 lakhs across 18,700 villages of
Gujarat are procuring on an average 230 Lakhs litres of milk per day which is 10% higher than
last year.

MARKET SHARE--Amul to grow at 20% in 2019-20, says RS Sodhi. New Delhi: The
Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), which markets milk and dairy
products under the Amul brand, said that it will grow at 20% in 2019-20 on the back of milk-
based products and ethnic flavours.

Amul to grow at 20% in 2019-20,

 Amul reported a total turnover of ₹33,150 crore in 2018-19, growing at 13% over the
previous financial year
 The company, which launched the Tru range of fruit beverages with a base of milk solids in
four flavours, plans to make a big splash in the category.

The Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), which markets milk and
dairy products under the Amul brand, said that it will grow at 20% in 2019-20 on the back of
milk-based products and ethnic flavours.
“In April, we have grown by more than 22% and we are expecting growth of 20% in 2019-20.
Last year, we registered 13% growth purely on volume basis, as there was no increase in
product prices. This growth will be driven by increase in purchasing power, better power
infrastructure, which will lead to sale of chilled products in rural areas, and no increase in
prices," said R.S Sodhi, managing director, GCMMF, on the sidelines of a sponsorship event.
Amul announced that it will be the sponsor for the Afghanistan cricket team for the ICC World
Cup.
The company reported a total turnover of ₹33,150 crore, growing at 13% in 2018-19.

Apart from its dairy business, which is growing at 14%, Sodhi said milk-based products such as
lassi and shakes are growing at 15-20%. The recently launched fruit beverage brand ‘Tru’ is
registering 12-15% growth.
19
“We have witnessed a change in the consumption pattern of Indian consumers as they are
demanding localized products and ethnic flavours. They feel such products are fresh, meet their
taste requirement and are affordable. Our ambition is to become a ‘city brand’ in the consumer
mind space. In the food segment, people want local brands. We are offering lassi, sweet
yoghurt and buttermilk, which is growing because of high demand," added Sodhi.
Amul has been selling more than 25 variants of shakes, lassi, and flavoured milk. The
company, which launched Tru range of fruit beverages with a base of milk solids in four
flavours, plans to make a big splash in the category, with increasing number of consumers
moving away from carbonated drinks.

20
ORGANIZATION CHART-

AWARDS-

The annual award is conferred on distinguished professionals and organisations for making
outstanding contribution to their organisations and to recognise excellence in management,
entrepreneurship and leadership, according to an Amul release here. AIMA and RK Swamy
BBDO had instituted the Award in 2009.

 GCMMF received Bronze Trophy at the Indian Marketing Awards – 2014

 GCMMF – Finalist in World Beverage Innovation Awards - 2014

21
CHAPTER 4 – REVIEW LITERATURE

1. Customer trust on brand of product and name of company while purchasing the product.

2. The company has been able to deliver a good quality and taste products are reasonable and

affordable prices.

3. Most of the complaints that are heared from the retailers is that they are not satisfied with the

company’s margin as the margin is very low compared with the competitor’s product.

4. The company enjoys market leadership in products like milk, dahi, but also lacks products

awareness in product like fresh panner etc.

5. The improper distribution network creates a hindrance in reaching the product to the market and

customers.

6. At some outlets, employees are not satisfied even dealers also. According to them, Amul only takes

action for customer satisfaction, but for the outlet’s employee satisfaction, Amul tries to avoid it.

7. Retailers do not agree to stock Amul Fresh panner as the company doesn’t provide the retailer with

replacement policy.

8. The local competitors are the main challenge for Amul in product categories like Milk, Dahi etc.

9. The retailers are not happy with the damage product treatment given by the company.

10. The company faces huge competition from other companies in the market for milk dahi, panner.

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CHAPTER 5- RESEARCH METHODOLOGY

A research methodology is a way to systematically solve the research problem. In research

Methodology we study the various steps that are generally adopted by researcher in studying
his research problem along with the logic behind them. The purpose of methodology section is
to describe the research procedure by which the relevant information is gathered.

This section comprises the research design, the data collection method, the sampling procedure
and analysis procedure.

Research Methodology includes:

 .Research Design
 Sample Design
 Data Collection
 Data Analysis

RESEARCH DESIGN-
Research design is defined as a framework of methods and techniques chosen by a researcher to
combine various components of research in a reasonably logical manner so that the research
problem is efficiently handled. It provides insights about “how” to conduct research using a
particular methodology.
The design of a research topic is used to explain the type of research (experimental, survey,
correlational, semi-experimental, review) and also its sub-type (experimental design, research
problem, descriptive case-study). There are three main sections of research design: Data
collection, measurement, and analysis.

Depending upon the objective of the study there are four research design available-
Exploratory Design
Descriptive Research
Diagnostic Research
Experimental Research

Exploratory Design-
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Exploratory research is a research conducted for a problem that has not been studied more
clearly, intended to establish priorities, develop operational definitions and improve the final
research design. Exploratory research helps determine the best research design, data-collection
method and selection of subjects.

Descriptive Research-
Descriptive research is defined as a research method that describes the characteristics of the
population or phenomenon that is being studied. This methodology focuses more on the “what”
of the research subject rather than the “why” of the research subject.

Diagnostic Research-
A diagnosis in practice is a sequential process starting with a patient with a particular set of
signs and symptoms. To serve practice, diagnostic research should aim to quantify the added
value of a test to clinical information that is commonly available before the test will be applied.

Experimental Research-
Experimental research is a study that strictly adheres to a scientific research design. It includes
a hypothesis, a variable that can be manipulated by the researcher, and variables that can be
measured, calculated and compared. Most importantly, experimental research is completed in a
controlled environment.

SAMPLE DESIGN-

Sampling design is a mathematical function that gives you the probability of any given sample
being drawn. Since sampling is the foundation of nearly every research project, the study of
sampling design is a crucial part of statistics, and is often a one or two semester course.

DATA COLLECTION-

24
Market Research requires two types of data i.e. Secondary data and Primary data. Primary data
has been used abundantly for the study. Questionnaire is prepared & the survey was
undertaken. Feedback and suggestion for the store has been taken by asking questions and
observation has also done to gather primary information.

Primary Data— Every research is depending upon the primary data. In this project, the data has
been collected through Questionnaire from the Distributors, Wholesalers, retailers and
Customers of the AMUL .
Secondary Data— Researcher started his investigation by examining secondary data to see
whether his problem could partly or wholly be solved without collecting costly primary data.
Secondary data provides starting points for research and offers the advantage of low cost and
ready availability on the other hand the data needed by the researcher might not exist or
existing data might be incomplete or unreliable. Secondary data was collected from internal
sources, sales statements, internet, brochure of company and magazines.

Sample Size-
Sample size measures the number of individual samples measured or observations used in a
survey or experiment. The sample size of a statistical survey is also directly related to the
survey's margin of error. Margin of error is a percentage that expresses the probability that
the data received is accurate.

S.No Sample Name Sample size

1 Distributors 03
2 Wholesalers 60
3 Retailers 45
4 Customers 37
Total 150

The locations which I was covered are – Aundh, Kothrud.

CHAPTER 6 – DATA ANALYSIS

1. Table showing how many wholesalers or retailers are selling AMUL products?
25
 Percentage
Yes 78%
No 22%

%showing how many reatilers sale AMUL products

90

80

70

60

50

40

30

20

10

0
yes no

Series 1 Series 2 Series 3

Interpretation-
 It is good to see that 78% marketers sales AMUL PRODUCT.

 The 22% who does not keep AMUL product in their stores are the one who owns small
marts.

2. Table showing why wholesalers or retailers sales AMUL PRODUCT?

No of respondents Percentage
Margin 20 11%
Promotional Schemes 17 11%
Demand 65 46%
Dealer relationship 33 25%
Credit policy 10 05%
Other reason 05 02%
Total 150 100%

26
 reason why retailer sale AMUL
160

140

120

100

80

60

40

20

0
margin promotional demand relationship credit other total

Series 1 Series 2 Series 3

Interpretation
 The highest % is touched by demand which means because of AMUL PRODUCTS
demands the wholesalers and retailers sales AMUL products.
 The second highest % is of dealer relationship as retailers and wholesalers has a good
relationship with the dealers.

3. Table showing how wholesalers and retailers rate the quality of the AMUL PRODUCTS?

Percentage
Good 65%
Average 23%
Poor 05%
Doesn’t Matter 07%

27
 quality of AMUL
70

60

50

40

30

20

10

0
good average poor doesn't mat

Series 1 Series 2 Series 3

Interpretation
 According to the wholesalers and retailers AMUL PRODUCT quality is good.
 That point is added in the goodwill of AMUL.

4. Table showing what wholesalers and retailers think about representative behaviour with the
salesman of distribution channel?

No. of Respondents Percentage

Highly satisfactory 55 38%
Satisfactory 62 50%
Dissatisfactory 25 10%
Highly dissatisfactory 08 02%
Total 150 100%

28
 behaviour with the salesman
160

140

120

100

80

60

40

20

0
Highly satis satisfactory Dissatisfacty highly diss Total

Series 1 Series 2 Series 3

Interpretation
 According to the retailers and wholesalers their behaviour with the AMUL salesman are
satisfactory.
 To increase the satisfaction of other retailers salesman should maintain a good
relationship with the retailers.
 All the distribution channel intermediaries should work together to build a good
relationship with each other.

CHAPTER 7 – FINDINGS & SUGGESTION

This study “Effectiveness of distribution channel with the reference to GCMMF(AMUL) “
helps to find out the efficiency of the distribution channel followed at the organization.

 From the findings we know that sales of AMUL PRODUCTS was high.
 It was found that more of the retailers agreed that promotional activities increase the
sale of AMUL.
 It was founded that 35 of the % retailers are not knowing the scheme information on
time.
 All the retailer shares a good relationship with the AMUL distribution channel.
 Most of the retailers says that demand is the reason why they sale AMUL product at
their store, especially daily basic products(milk, dahi).

29
  There are 70% stores where AMUL PRODUCT are being sold.
 After been ordered retailers face difficulty getting the order not in time, they get orders
after a week sometimes.
 It is the complain of the retailers that salesman do not take replace the old stock more
than a week which leads retailers to face losses.
 The delivery of the AMUL PRODUCTS are mostly on time.
 Retailers earn profit by keeping AMUL PRODUCTS in their stores.
 Promotional activities sometime fail to reach to some of the retailers on time.

CHAPTER 8- CONCLUSION
The distribution channel means “The chain of businesses or intermediaries through which a
good or service passes until it reaches the end consumer.” A distribution channel can include
wholesalers, retailers, distributors and even the internet. Channels are broken into direct and
indirect forms, within a “direct” channel allowing consumers to buy the manufacturer and an
“indirect” channel allowing the consumer to buy the good from a wholesaler. From the project
we can conclude that a distribution channel is important factor for sales their product in a good
way.
So, every company should maintain a good distribution channel. A company
distribution channels decision directly affects every other marketing decision. The company
sales force communication decision depends on how much training, motivation and support its
channel partners needs. A company develops or acquires certain new product and may depend
on how well those products fit the capabilities of its channel members.

30
CHAPTER 09 – LIMITATIONS

 The time frame was a major constraint.

 Unavailability of information.
 As the methodology of data collection was mainly Questionnaire and interview of
samples which were selected by researcher. Some people (sample) may not have
revealed the true information and some times because of the bias, the findings may not
be fully correct.
 The number of Distributors, wholesalers, Retailers, and Customers interacted were
limited so the actual potential might differ from the reported findings in the projectThe
information has been presented after collecting data from some given areas of Pune
market only.

31
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