TRAINING REPORT

ON
"DISTRIBUTION NETWORK OF
FAST MOVING CONSUMER GOODS"
IN CONTEXT TO BUNGE INDIA PVT LTD, RAJPURA
IN THE PARTIAL FULLFILMENT FOR THE
DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF :Mr. AJAY GUPTA

SUBMITTED BY :RAMINDERJIT SINGH

PATEL INSTITUTE OF MANAGEMENT & TECHNOLOGY

DECLARATION

Raminderjit Singh hereby declares that the project report entitled "Employee
Motivation " at Bunge India Pvt Ltd , Rajpura ,submitted by me for the award of
"Master of Business Administration under Punjabi university , Patiala is the original
work conducted by me and the material has neither been copied nor reproduced from
any other sources . The data provided in the study is correct to the best of my
knowledge and benefit.

( RAMINDERJIT SINGH

ACKNOWLEGEMENT

The entire project from the very idea of it to reality would not have been possible
without the guidance and support of many people. I would therefore like to take the
golden opportunity of expressing my sincere and profound gratitude to all those people
who helped me throughout the project
I express my sincere gratitude to management of "BUNGE INDIA PVT LTD
,RAJPURA ". who accepted me as a summer trainee .
Finally, I would extend my profound gratitude to the employees of BUNGE INDIA
PVT LTD ,RAJPURA for their full co operation during the training period

INDEX

CHAPTER

TITLE

ABSTRACT

II

INTRODUCTION TO EDIBLE OIL INDUSTRY

III

BUNGE INDIA PVT LTD

CHANNEL OF DISTRIBUTIONS
IV

TYPES OF DISTRIBUTION CHANNELS

FACST MOVING CONSUMER GOODS
MECHANISM OF FMCG DISTRIBUTION CHANNEL

VI

OBJECTIVES OF THE STUDY

RESEARCH METHODOLOGY
ANALYSIS

VII

CONCLUSION & RECOMENDATIONS

VIII

BIBLOGRAPHY

IX

ANNEXURE

ABSTRACT
Distribution channels are behind every product and service that consumers and
business buyers purchase every where. Usually, combination on institutions
specializing in manufacturing , wholesaling, retailing and many other areas join force
in Distribution channels.
A Distribution channels is a set of inter dependent organization involved in the
process of making a product or service available for use or consumption.
Distribution channels decisions play a role of Strategic importance in the overall
presence and success a company enjoys in the market palace.
This project report entitled A Study on Distribution Channel with Special
Reference to Bunge India Pvt ltd, Rajpura . To determine the dealer satisfaction of the
product and future demands, needs, wants.
The study starts with an introduction of the Distribution Channel, company
profile, important of the Study, Review of Literature and objectives are set out for the
study. Research methodology, data analysis and interpretation, findings and suggestions
of the study follow.

The response given by the dealers and analyzed and interpret using different
types of statistical tool such as percentage analysis, chi-square method.

EDIBLE OIL MARKET IN INDIA

The Indian edible oils & fats industry has a market size of 15 million tons annually
(annual consumption) and is valued at INR 900 billion. Indias consumption is growing
annually at 5% p.a. Within the industry, 40% of oils & fats are sold in packaged form
and this segment is growing at 20-25% p.a. With this pace, the industry will get 7580% packaged by 2015.
India still depends heavily on imports and 50-60% of its demand is met from imported
oils (mainly Palmolein, Sunflower and Vegetable). The national per capita consumption
of edible oils & fats is 14 kg per annum which is substantially lower than the world
average of 20 kg per annum. If we compare it to the average of 35 kg per annum for
developed countries, Indias per capita consumption can only increase in future and that
too substantially.
For last eight years, the Central Government has been encouraging crude oil imports by
fixing lower customs duty rates. This is solely with the purpose to promote domestic
edible oil industry as is done by most of the countries internationally. Presently, the
customs duty on crude edible oils is Nil and on refined oils it is as low as 7.5%. Hence,
imports will increase continuously to meet the growing demand.
India's edible oil imports, including palm oil, may rise 5.4 percent to 11.7 million
tonnes in the year to October 2015 as a weak monsoon hurts domestic oilseeds
production, an industry expert said on Thursday.
Higher purchases by the world's leading cooking oil importer should in the long term
support benchmark Malaysian palm oil futures that have shed 7 percent so far this year.

"Considering current monsoon progress, I don't think next year there will be any
meaningful growth in local edible oil supplies, but demand will rise," Govindbhai Patel,
a trade expert from India's western city of Rajkot, said at a regional palm oil conference
in Mumbai.
India's annual rains have covered half of its landmass four days behind the usual
schedule, failing to recover from a late start that has slowed sowing of summer crops in
a country where half of the farmland still lacks irrigation.
Production of the main summer oilseed crop would depend on the quantity of rainfall in
the next two months, said Patel, who has been in the edible oil trade for more than four
decades.
India is expected to import on an average 1.05 million tonnes of edible oil, including
700,000 tonnes of palm oil, each month until the end of the current year in October,
said Patel, a managing partner at GG Patel & Nikhil Research Co.
In May, India shipped in 1.02 million tonnes of edible oil, including 654,255 tonnes of
palm oil.
Dorab Mistry, who heads the vegetable oil trading arm at India's Godrej Industries, also
expects the country's edible oil imports to rise in the next five months due to a delay in
soybean sowing.
India mainly buys palm oils from Indonesia and Malaysia, and small quantities of
soyoil from Latin America and sunflower oil from Black Sea nations.
Patel expects India's imports of sunflower oil to rise to a record high of 1.45 million
tonnes and soyoil to 1.75 million tonnes in 2013/14. He said the share of palm oil
imports in total edible oil shipments would drop as prices for low density oils such as
soy and sunflower have turned competitive.
In 2012/13, India's palm oil purchases of 8.3 million tonnes accounted for 80 percent of
the total edible oil imports, with soy and sunflower oils accounting for the remaining 20
percent.

CURRENT SCENERIO OF EDIBLE OIL IN INDIA

Despite the increase in oilseed output, Indias dependence on imported edible oil is set
to hit a record high this year. The increasing direct consumption of oilseeds, including
soybean, mustard seed and groundnut, has reduced their supplies available for crushing.
This oil year (October 2013-November 2014), the share of importsto overall edible oil
consumption is likely to hit 65.3 per cent, against 61.2 per cent in the previous year,
data compiled by the US Department of Agriculture show. Indias overall edible oil
import is likely to stand at 11.8 million tonnes (mt) this year, against 10.7 mt in the
previous year. The edible oil import bill may exceed the benchmark Rs 60,000-crore
mark; last year, it stood at Rs 57,500 crore.
Every year, fresh addition to Indias existing edible oil consumption stands at 0.8-0.9
mt because of an increase in the population and lifestyle changes. However, at seveneight mt, edible oil production from domestic sources has remained stagnant for the
past few years. As such, dependence on imports will continue until production from
domestic sources is stepped up, said B V Mehta, executive director, Solvent
Extractors Association.
According to an India Ratings report, total edible oil production from domestic sources
for 2013-14 is likely to stand at 7.6 mt, a marginal rise compared to last years 7.5 mt.
For the November 2013-March 2014 period, overall edible oil import fell six per cent
to 4.3 mt from 4.6 mt in the year-ago period. As the crushing of last years kharif
oilseeds was underway in full swing, imports were suppressed. With the lean seedcrushing season, import will move up, said Pradeep Chowdhry, managing director of
Gemini Edibles & Fats India, a Hyderabad-based subsidiary of Ruchi Soya Industries.
Sustained lower prices have increased per capita consumption of edible oils, especially
for rural consumers (who buy oil based on the money available, not according to

weight). Per capita consumption is increasing two-three per cent every year. According
to Dorab Mistry, director of Godrej International, Indias per capita edible oil
consumption would rise to 14.43 kg in 2013-14 from 13.92 kg the previous year.
The financials of edible oil companies are likely to improve in the coming quarters,
owing to higher revenue growth on account of increased high sea sales and refinery
sales. With an increase in the proportion of the higher-margin refinery sales to overall
sales, the profitability and margins of companies are likely to improve significantly in
2014-15 compared to the levels seen in 2013-14 and 2012-13, India Ratings forecasts.
The agency expects fully integrated refiners with wider product portfolios to benefit
more than those with limited product diversification. Companies whose portfolios
include branded products will see additional gains.

Market Trends:
India is the worlds fourth largest edible oil economy, after USA, China and
Brazil, with 15,000 oil mills, 711 solvent extraction units, and 264
vanaspati plants; and over 1,000 refineries employing more than one
million people.
The total market size is at Rs. 600 billion and import-export trade is worth
Rs.130 billion.
India being deficient in oils has to import 40% of its consumption
requirements.
The domestic turn over of the vegetable oil industry is Rs.70,000 crores
and import-export turnover of about Rs.16,000 crores per annum, consist
of Rs.10,000 crores for import of edible oils & Rs.6,000 crores for export of ilmeals,
oilseeds castor oil, groundnut oil & vegetable fats of tree borne
oilseeds.
India's edible oil industry is growing at an compounded annual growth rate
(CAGR) of 90 per cent. By rationalizing the import duty, the growth rate of
sector may rise up to 150 per cent by 2010.
The total size of the olive oil market in India is around 4 million euro in
terms of value and 2,000 tonnes in terms of volume, out of which Spanish
companies command a share of about 60%.
Currently, India accounts for 7.4% of world oilseeds output; 6.1% of world
oilmeal production; 3.9% of world oilmeal export; 5.8% of world vegoil
production; 11.2% of world vegoil import; and 9.3% of the world edible oil
consumption.
India consumes over 4.5 million tons Palm Oil and other Palm Oil
Products per annum, while domestic production of Crude Palm Oil in India is hardly
60,000 tons per annum and rising very slowly.

CHAPTER - II

BUNGE INDIA PVT. LTD.

Company being established as BUNGE FOUNDS BUNGE & CO. IN

AMSTERDAM in 1818, The Netherlands, as an import/export trading firm, Bunge
will maintain a prominent role in world grain markets.
My Project is the study of Employee Motivation.
The study was conducted at the office of Bunge India Pvt. Ltd.,
Patiala - Chandigarh Road, Rajpura
Punjab - 140 401.
The project was of 45 days duration. During the project I interviewed the
executives & staff to collect the data, & also made use of company records & annual
reports. The data collected were then compiled, tabulated and analyzed.

Bunge is a leading agribusiness and food company with integrated operations that
circle the globe, stretching from the farm field to the retail shelf

originating oilseeds and grains from the world's primary growing regions and
transporting them to customers worldwide;

crushing oilseeds to make meal for the livestock industry and oil for the food
processing, food service and biofuel industries;

producing bottled oils, mayonnaise, margarines and other food products for
consumers;

crushing sugarcane to make sugar, ethanol and electricity;

milling wheat and corn for food processors, bakeries, brewers and other
commercial customers; and

selling fertilizer to farmers.

HISTORY

BUNGE LIMITED HISTORY

Company being established as BUNGE FOUNDS BUNGE & CO. IN AMSTERDAM
in 1818, The Netherlands, as an import/export trading firm, Bunge will maintain a
prominent role in world grain markets.
In 1935 , Bunge builds it first major grain handling facility in Midway, MN, and
becomes an originator of grain in NORTH AMERICA.
In 1967 , Bunge expands at Destrehan by building its first US Soybean processing
plant.
In 2007, Bunge purchases its first sugarcane mill in brazil and forms a fertilizer joint
venture in Morocco.

IN 23 June 2003, US-based agribusiness and food company Bunge has announced that
it has signed a memorandum of understanding with Hindustan Lever to acquire the
Indian consumer goods firms edible oils and fats businesses based in Bangalore, India.
In 22 Sep. 2003, US agribusiness giant Bunge has announced that its Indian subsidiary,
Gee Pee Ceval Proteins and Investment, has acquired the India-based assets of Prestige
Foods.
In 15 Oct. 2004,US agribusiness Bunge is to invest between US$100m and $200m in
India over the next five years, its Indian subsidiary has said.
In 21 Dec. 2011, US agribusiness giant Bunge is set to buy the edible oils and fats
business of India's AmritBanaspati.

CORE VALUES

Bunge's five core values reflect who workers are and what they do.
They ensure the effectiveness of integrated and decentralized approach and help us
achieve purpose of improving the global agribusiness and food chain.

Integrity
Honesty and fairness guide every action.

Teamwork
value individual excellence and work as a team for the benefit of Bunge
and stakeholders.

Citizenship
contribute to the development of individuals and the social and economic
fabric of communities, and act as stewards of the environment.

Entrepreneurship
prize individual initiative to meet opportunities and deliver results.

Openness and Trust

open to other ideas and opinions, and trust its colleagues.

STRATEGY

Company strategy capitalizes on the fundamentals

that drive its industry. It is
strengthening its core businesses in key
origin and destination markets, expanding
into adjacent growth businesses where
it can leverage its strengths, and focusingon operational excellence.

VISION AND MISSION

The company aims at successfully meeting the varied needs of the Indian
consumers. The Company has continuously Endeavored to bring new products to the
Indian Consumer the Company stayed close to its roots nature and it has been a
platform for its success for several years.
Mission Statement
The mission statement of Bunge India Pvt Ltd. Rajpura is To produce and sell
goods and service to achieve the highest return on sales in the Industry to total
satisfaction of customers , employees and Share holders in that order.
Quality
Rajpura Branch of Bunge India Pvt. Ltd. has a good Quality control system
together with Research and Development which is comparable to its best in the
Industry. It is to the Credit of its good Quality Control system and efficient R and D
Department, that Bunge India Pvt. Ltd, Rajpura has been honored and awarded.
The American International Quality Certificate and Gold Medal.

PRICING STRATEGY OF BUNGE INDIA

Pricing decision effects the overall marketing skills and consumer acceptability. While
the external forces in which the commercial establishment to operates has to be taken
on the account but the internal forces its strength and weaknesses the company
objectives etc have viewed in the competitive field . Edible oil prices is affected not
only because of national and international market variation but because of the internal
factors such as government raw oil import policies prices of other oils used in mixture
and the total expected output of oil need crops . The interstate ban on supply of the ra
oils also affect the pricing of the product.
While marketing the price structure the marketer has to watch carefully the pricing
strategy adopted by the competitors. The pricing structure which represents the margin
to the distributors, retailers etc has an impact on the sales of the product , the pricing
structure of Bunge India Rajpura is as below :-

3-1/2 % dealers margin

5-1/2 % retailers margin

Bunge India also covers the distributors on the retrospective basis if there is any price
fluctuations thus a safe play for the distributors and the retailers too .

DISRTIBUTIIONS OF PRODUCT

Distribution of the product is the main objectives of the marketing process. It is the
process of the transferring the product from the producers to the distributions and
ultimately to the consumers through retailers . The decisions regarding the channels of
the distribution is very important decisions s from the company's point of view because
the selection of channel affects considerable the other marketing decisions .

Bunge India has adopted three tier distribution :-

PLANT , DISTRIBUTORS , RETAILERS , CONSUMERS

All the products produced at Bunge India ,Rajpura are sold in the area of Punjab
Haryana, Rajasthan , J &K , Himachal Pradesh ,Chandigarh through 130 depots and
575 stations . Number of Dealers engaged in distributions of Bunge India products are
around 670 .

CHAPTER - III

INDRODUCTION
Place, Distribution, Channel, or Intermediary.
A channel of distribution comprises a set of institutions which perform all of the
activities utilized to move a product and its title from production to consumption.
Bucklin - Theory of Distribution Channel Structure (1966)
Another element of Neil H.Borden's Marketing Mix is Place. Place is also
known as channel, distribution, or intermediary. It is the mechanism through which
goods and/or services are moved from the manufacturer/ service provider to the user or
consumer.
An interrelated arrangement of people, storage facilities and transportation systems that
moves goods and services from producers to consumers. A distribution network is the
system a company uses to get products from the manufacturer to the retailer. A fast and
reliable distribution network is essential to a successful business because customers
must be able to get products and services when they want them.

There are six basic 'channel' decisions:

Do we use direct or indirect channels? (e.g. 'direct' to a consumer, 'indirect' via a

wholesaler)

Single or multiple channels

Cumulative length of the multiple channels

Types of intermediary (see later)

Number of intermediaries at each level (e.g. how many retailers in Southern

Spain).

Which companies as intermediaries to avoid 'intrachannel conflict' (i.e.

infighting between local distributors)

Selection Consideration - how do we decide upon a distributor?

Market segment - the distributor must be familiar with your target consumer
and segment.
Changes during the product life cycle - different channels can be exploited
at different points in the PLC e.g. Foldaway scooters are now available
everywhere. Once they were sold via a few specific stores.
Producer - distributor fit - Is there a match between their polices, strategies,
image, and yours? Look for 'synergy'.
Qualification assessment - establish the experience and track record of your
intermediary.
How much training and support will your distributor require?

Types of Channel Intermediaries.

There are many types of intermediaries such as wholesalers, agents, retailers,
the Internet, overseas distributors, direct marketing (from manufacturer to user without
an intermediary), and many others. The main modes of distribution will be looked at in
more detail.

1. Channel Intermediaries - Wholesalers

They break down 'bulk' into smaller packages for resale by a retailer.

They buy from producers and resell to retailers. They take ownership or 'title' to
goods whereas agents do not (see below).

They provide storage facilities. For example, cheese manufacturers seldom wait
for their product to mature. They sell on to a wholesaler that will store it and
eventually resell to a retailer.

Wholesalers offer reduce the physical contact cost between the producer and
consumer e.g. customer service costs, or sales force costs.

A wholesaler will often take on the some of the marketing responsibilities.

Many produce their own brochures and use their own telesales operations.

2. Channel Intermediaries - Agents

Agents are mainly used in international markets.

An agent will typically secure an order for a producer and will take a
commission. They do not tend to take title to the goods. This means that capital
is not tied up in goods. However, a 'stockist agent' will hold consignment stock
(i.e. will store the stock, but the title will remain with the producer. This
approach is used where goods need to get into a market soon after the order is
placed e.g. foodstuffs).

Agents can be very expensive to train. They are difficult to keep control of due
to the physical distances involved. They are difficult to motivate.

3. Channel Intermediaries - Retailers

Retailers will have a much stronger personal relationship with the consumer.

The retailer will hold several other brands and products. A consumer will expect
to be exposed to many products.

Retailers will often offer credit to the customer e.g. electrical wholesalers, or
travel agents.

Products and services are promoted and merchandised by the retailer.

The retailer will give the final selling price to the product.

Retailers often have a strong 'brand' themselves e.g. Ross and Wall-Mart in the
USA, and Alisuper, Modelo, and Jumbo in Portugal.

4. Channel Intermediaries - Internet

The Internet has a geographically disperse market.

The main benefit of the Internet is that niche products reach a wider audience
e.g. Scottish Salmon direct from an Inverness fishery.

There are low barriers low barriers to entry as set up costs are low.

Use e-commerce technology (for payment, shopping software, etc)

There is a paradigm shift in commerce and consumption which benefits

distribution via the Internet

Types of Channels

Normally goods and services pass through several hands before they come to the hands
of the
consumer for use. But in some cases producers sell goods and services directly to the
consumers
without involving any middlemen in between them, which can be called as direct
channel. So
there are two types of channels, one direct channel and the other, indirect channel.
From the above diagram it can be found that there is just one direct channel i.e. from
producer to
the consumer. There are many indirect channels like:
(i) Producer -Agent Wholesaler- Retailer -Consumer,
(ii) Producer- Wholesaler -Retailer -Consumer
(iii) Producer -Agent -Consumer
(iv) Producer -Wholesaler -Consumer and
(v) Producer -Retailer -Consumer
Let us discuss about some of the common channels.

(i) Direct Channel

In this channel, producers sell their goods and services directly to the consumers. There
is no
middleman present between the producers and consumers. The producers may sell
directly to
consumers through door-to-door salesmen and through their own retail stores. For
example,
Bata India Ltd, HPCL, Liberty Shoes Limited has their own retail shops to sell their
products to
consumers. For certain service organizations consumers avail the service directly.
Banks,
consultancy firms, telephone companies, passenger and freight transport services, etc.
are examples
of direct channel of distribution of service.

(ii) Indirect Channel

If the producer is producing goods on a large scale, it may not be possible for him to
sell goods
directly to consumers. As such, he sells goods through middlemen. These middlemen
may be
wholesalers or retailers. A wholesaler is a person who buys goods in large quantities
from
producers; where as a retailer is one who buys goods from wholesalers and producers
and sells
to ultimate consumers as per their requirement. the involvement of various middlemen
in the
process of distribution constitute the indirect channel of distribution. Let us look into
some of the
important indirect channels of distribution.

This is the common channel for the distribution of goods to ultimate consumers. Selling
goods
through wholesaler may be suitable in case of food grains, spices, utensils, etc. and
mostly of
items, which are smaller in size.
Under this channel, the producers sell to one or more retailers who in turn sell to the
ultimate
consumers. This channel is used under the following conditions
(i) When the goods cater to a local market, for example, breads, biscuits, patties, etc.
(ii) When the retailers are big and buy in bulk but sell in smaller units, directly to the
consumers.
Departmental stores and super bazars are examples of this channel.

Types of Marketing Channels[

There are four main types of marketing channels:
Producer --> Customer
The producer sells the goods or provides the service directly to the consumer with no
involvement with a middle man such as an intermediary, a wholesaler, a retailer, an
agent, or a reseller. The consumer goes directly to the producer to buy the product
without going through any other channel. This type of marketing is most beneficial to
farmers who can set the prices of their products.

Producer --> Retailer --> Consumer

Retailers, like Walmart and Target, buy the product from the manufacturer and sell
them directly to the consumer. This channel works best for manufacturers that produce
shopping goods like, clothes, shoes,furniture, tableware, and toys.[5] Since consumers
need more time with these items before they decide to purchase them, it is in the best
interest of the manufacturer to sell them to another user before it gets into the hand of
the consumers. It is also a good strategy to use another dealer to get the product to the
end-user if the producer needs to get to the market more quickly[6] by using an
established network that already has brand loyalty.
Producer --> Wholesaler/Distributor --> Customer
Wholesalers, like Costco, buy the products from the manufacture and sell them to the
consumer. In this channel, consumers can buy products directly from the wholesaler
in bulk. By buying the items in bulk from the wholesaler the prices of the product are
reduced. This is because the wholesaler takes away extra costs, such as service costs or
sales force costs, that customers usually pay when buying from retail; making the price
much cheaper for the consumer.[5] However, the wholesaler does not always sell
directly to the consumer. Sometimes the wholesaler will go through a retailer before the
product gets into the hands of the consumer. Each dealer (the manufacture, the

wholesaler, and the retailer) will be looking to make a decent profit margin from the
product. So each time the buyer purchases the merchandise from another source, the
price of the product has to increase, in order to maximize the profit each person will
receive. This raises the price of the product for the end-user.
Producer --> Agent/Broker --> Wholesaler or Retailer --> Customer
This distribution channel involves more than one intermediary before the product gets
into the hands of the consumer. This middleman, known as the agent, assists with the
negotiation between the manufacturer and the seller. Agents come into play when the
producers need to get their product into the market as quickly as possible. This happens
mostly when the item is perishable and has to get to the market fresh before it starts to
rot.[5] At times the agent will directly go to the retailer with the goods, or take an
alternate route through the wholesaler who will go to a retailer and then finally to the
consumer.

What are fast moving consumer goods

Also known as the Consumer Packaged Goods or CPG Industry, this multi-million
dollar sector is made up of a huge range of famous brand names the kind that we use
every single day. These fast moving consumer goods are the essential items we
purchase when we go shopping and use in our everyday lives. They're the household
items you pick up when you're buying groceries or visit your local chemist or
pharmacy. FMCG goods are referred to as 'fast moving', quite simply, because they're
the quickest items to leave the supermarket shelves. They also tend to be the high
volume, low cost items.
Cleaning and laundry products, over the counter medicines, personal care items and
food stuffs make up a large bulk of the goods in the FMCG arena, but it doesn't end
there. Paper products, pharmaceuticals, consumer electronics, plastic goods, printing
and stationery, alcoholic drinks, tobacco and cigarettes can all be considered fast
moving consumer goods too.
The top FMCG companies are characterised by their ability to produce the items that
are in highest demand by consumers and, at the same time, develop loyalty and trust
towards their brands.
The top FMCG companies are characterised by their ability to produce the items that
are in highest demand by consumers and, at the same time, develop loyalty and trust
towards their brands.
Some of the leading FMCG companies in the world include:

Colgate-Palmolive
Famous brands: Colgate toothpaste; Palmolive soap and cleaning products; AJAX
cleaning products.
Coca-Cola
Famous brands: Coca-Cola; Diet Coke; Fanta; Sprite
General Mills
Famous brands: Pillsbury; Green Giant; Yoplait dairy products
H. J. Heinz
Famous brands: Heinz Tomato Ketchup; Lea & Perrins; HP Sauce
Henkel
Famous brands: Pritt; Sellotape; Schwarzkopf hair products
Johnson & Johnson
Famous brands: Johnson's Baby; Neutrogena; Acuvue; Listerine oral care
Kimberly-Clark
Famous brands: Kleenex paper products; Kotex feminine care; Huggies baby
products

Kraft
Famous brands: Kraft, Milka; Philadelphia; Toblerone
L'Oral
Famous brands: L'Oreal Paris, Garnier; Maybelline New York; Biotherm; Kiehl's
Nestl
Famous brands: Nestel Pure Life, Nescafe; Nesquik; Kit Kat; Purina
Procter & Gamble
Famous brands: Ariel, Gillette; Pampers; Olay; Duracell; Pantene
RB (Reckitt Benckiser)
Famous brands: Dettol/Lysol, Air Wick, Veet; Vanish; Finish; French's Mustard;
Durex

Characteristics
The following are the main characteristics of FMCGs:[1]
From the consumers' perspective:

Frequent purchase

Low involvement (little or no effort to choose the item)

Low price

Short shelf life

Must use for daily consumption

From the marketers' angle:

High volumes

Low contribution margins

Extensive distribution networks

High stock turnover

Mechanics of Distribution Channels of Sector

The supply chain of products in the FMCG market in India is one of the longest supply
chains an industry could really have. There are as many as 5 levels of intermediaries
involved in the entire supply chain through which a product passes before reaching the
end consumer .What has been observed is that even though these FMCG companies are
big multinationals and Indian but face a major challenge of making their products
available in the market in the right quantities and in the right time. This is simply
because these companies dont really have a wide network of sales agents and
other force which is required and is ideal for catering their products to he markets. This
aspect is taken over by distributors, wholesalers and retailer whose margins on these
products actually double the price of these products when a final consumer buys it. The
margins kept by these intermediaries range from 2% to 5%. The products in this
industry are transported from manufacturing units via c & f agencies or warehouse to
distributors who further sell the same to wholesalers or stockiest who finally sell it to
the retailers in the market. These products are transported either via roadways
or railways within the domestic markets and normally dont take more than a week to
reach the retailers. FMCG products are normally a high volume ball game and
products have to essentially be available in the market at all given points of time and at
all given points of purchase and therefore the distribution activities are highly volatile
and dynamic. The supply of products takes place virtually on a daily basis in fixed
quotas or otherwise, to retailers as per their requisitions and the anticipation of demand
and the performance of products in the recent past. All such criteria are taken into
consideration before the quantum
of products being dispatched to the next level of intermediary. Since its a volume gam
e,manufacturers make all possible efforts to boost sales and promote their distributors
to earn more and more orders from the retailers and wholesalers. A close check
is maintained on the flow of the products on a daily, weekly, fortnightly and monthly
basis to determine the trend in the business and flow of products and consumption. This
activity also helps to find out drawbacks of the distribution system, if any, and rectify
them within time

ANALYSIS & EVALUATION OF DISTRIBUTIONCHANNELS IN

FMCG SECTOR:
The supply chain of products in the FMCG market in India is one of the longest supply
chains an industry could really have. There are as many as 5 levels of intermediaries
involved in the entire supply chain through which a product passes before reaching the
end consumer. What has been observed is that even though these FMCG companies are
big multinationals and Indian but face a major challenge of making their products
available in the market in the right quantities and in the right time. This is simply
because these companies dont really have a wide network of sales agents and other
force which is required and is ideal for catering their products to the markets. This
aspect is taken over by distributors, wholesalers and retailer whose margins on these
products actually double the price of these products when a final consumer buys it. The
products in this industry are transported from manufacturing units via c&f agencies or
warehouse to distributors who further sell the same to wholesalers or stockiest
who finally sell it to the retailers in the market. These products are transported either
via roadways or railways within the domestic markets and normally dont take more
than a week to reach the retailers. FMCG products are normally a high volume and
products have to essentially be available in the market at all given points of time and at
all given points of purchase and therefore the distribution activities are highly volatile
and dynamic. The supply of products takes place virtually on a daily basis in fixed
quotas or otherwise, to retailers as per their requisitions and the expectation of demand
and the performance of products in the recent past. All such criteria are taken into
consideration before the quantum of products being dispatched to the next level of
intermediary. Since its a volume game, manufacturers make all possible efforts
to boost sales and promote their distributors to earn more and more orders from the
retailers and wholesalers. This activity also helps in finding out drawbacks of the
distribution system. Rediscovering of distribution means re-designing of distribution
process in a better way. As the market grows need for efficiency and viability increases.
Given an existing distribution process of a product, the need to rediscover it in e-tailing
way would lead to man Need of e-tailing What would happen to current distribution
process .Benefit among existing distribution or e-tailing The need for e-tailing is
to provide better entre to customer along with the instant order placement and
convenience for the same. Traditional distribution process can even exist after
rediscovering. as an alternative both the distribution model would exist in the product
market adding to higher sale by company

CHAPTER - IV

OBJECTIVES OF THE STUDY

To find out the distribution channels of distribution network of Bunge India
Pvt Ltd ..
Find out the efficiency level of distribution network
To find out the marketing situations of Bunge India Pvt Ltd .
To find out the present problems faced by dealers.
To find out the any new scheme required by the dealers.
To give valuable suggestions to the company for increase the sales volume

CHAPTER- V

RESEARH METHODOLOGY
Pilot study tells about the completeness, accuracy convenience of the
sampling from which it is proposed to select the sample.

RESEARCH DESIGN:
On analysis the condition the researcher found that descriptive research
design is appropriate for the research for the study.

DESCRIPTIVE RESEARCH:
Descriptive research includes surveys and fact-finding enquiries of
different kinds. The major purpose of descriptive research is description of the
state of affairs as it exists at present. In social science and business research we
quite often use the term Ex post facto research for descriptive research studies.
The main characteristic of this method is that the researcher has no control over
the variables; he can only report what has happening.
Most ex post facto research projects are used for descriptive studies in
which the researcher seeks to measure such items as, for example, frequency of
shopping, preferences of people, or similar data. Ex post facto studies also
include attempts by researchers to discover causes even when they cannot
control the variables. The methods of research utilized in descriptive research are
survey methods of all kinds, including comparative and correlation methods. In
analytical research, on the other hand, the researcher has to use facts or
information already available, and analyze these to make a critical evaluation of
the material.

SAMPLING TECHNIQUES:
The researchers select the judgment sampling model for his researcher
work.

SAMPLE SIZE:
The researcher selected the 100 respondents for the present study in
RAJPURA

CHAPTER - VI

ANALYSIS OF RETAILER RESPONSES

1. Which soybean oil has maximum sale in different quantity packs ?
1 LTR

5 LTR

15 LTR

As Shown In The Diagram 1 Ltr Packaging Is The Most Saleable And It Holds
41 % Share Of The Total

2. Rank the following attributes in soybean oil between 1-5 according to

customer importance
GRADING
1
2
3
4
5
TASTE
QUALITY
PACKAGING
BRAND IMAGE

3
3
6
7

16
18
16
21

23
20
18
8

3
5
5
8

5
4
5
6

PRICE

40

3. What influences customers to buy brand

1
Advertisement
Attractive packaging
Retailer
Shop display
Price

Discount
Health conscious

4. What are customer's feedback regarding soybean oil ?

5. Are you satisfied with incentives from the oil company ?

YES

NO

6. Are you satisfied with the services of the brand you are selling?
YES NO

7.

If no then what are the suggestions you will give to the company ?

CHAPTER -VII

CHAPTER - VI
CONCLUSIONS & SUGGESTION

Bunge India Pvt Ltd should concentrate in credit facility of the dealers.
Fixed the standard price of the product .
Bunge India should concentrate on sales man visit for wide marketing.
Bunge India should concentrate to attract the dealers.
Bunge India should improve their sales promotional efforts.
Bunge India does a market research and gets feed back.
Bunge India should concentrate to give incentives to the sub-dealers also.
Bunge India should concentrate to fulfill the service for dealers required.

LIMITATION OF THE STUDY

One of the important of the study was lack of time. Though the
respondent to the study was vast due to the time constraints the sample size was
limited.
The researcher has difficulty with most of the respondents who was not
willing to cooperate with the study, as they were very busy with their work.
The research had also difficulty in getting some information, which the
respondents were not interested to give.
The researcher had difficulty with the respondents because they did not
fill up the questionnaire in proper time.
Another limitation of the study was confined with not only retailers but
also consumers for survey of this study.

CHAPTER- VIII

BIBLIOGRAPHY
BOOKS
KOTLER PHILLIP, Marketing Management
GREEN AND TULI , MARKETING RESEARCH

WWW.BUNGEINDIA.COM

CHAPTER - IX

ANNEXURE
A STUDY ON DISTRIBUTION CHANNELS SURVEY WITH
SPECIAL REFERENCE TO BUNGE INDIA PVT LTD IN
RAJPURA

QUESTIONNAIRE

1. NAME

2. AGE

3. EDUCATION QUALIFICATION :
4. ADDRESS

6. WHICH COMPANY GETS HIGH SALES VOLUME IN EDIBLE OIL ?

A.
B.
C.
D.

BUNGE
HINDUSTAN UNILEVER
GINNI
GOKUL

(
(
(
(

)
)
)
)

7. IN YOUR POINT OF VIEW WHO IS THE MOST VALUABLE SUPPLIERS?

A. BUNGE
B. HINDUSTAN UNILEVER
C. GINNI
D. GOKUL

(
(
(

)
)
)

8. WHAT IS YOUR OPINION ABOUT THE QUALITY OF BUNGE INDIA

A. EXCELLENT
B. VERY GOOD
C. GOOD

( )
( )
( )

D. AVERAGE
E. POOR

( )
( )

9. KINDLY GIVE YOUR SUGGESTION RELATED TO THE PRICE OF BUNGE

INDIA
A.
B.
C.
D.
E.

HIGHLY SATISFIED
SATISFIED
AVERAGE
DISSATISFIED
HIGHLY DISSATISFIED

( )
( )
( )
( )
( )

10. WHICH IS THE FAST MOVING BRAND IN YOUR TOWN?

A. BUNGE
B. HINDUSTAN UNILEVER
C. GINNI
D. GOKUL

)
(
(

)
)

( )

11. PLEASE RATE THE ORDER AND REPLACEMENT OF BUNGE INDIA

A.
B.
C.
D.
E.

HIGHLY SATISFIED
SATISFIED
AVERAGE
DISSATISFIED
HIGHLY DISSATISFIED

( )
( )
( )
( )
( )

12. PLEASE RATE THE AVAILABILITY OF BUNGE INDIA

A.
B.
C.
D.
E.

HIGHLY SATISFIED
SATISFIED
AVERAGE
DISSATISFIED
HIGHLY DISSATISFIED

( )
( )
( )
( )
( )

13. ARE YOU SATISFIED WITH THE MARGINS OFFERED BY BUNGE INDIA
A.
B.
C.
D.
E.

HIGHLY SATISFIED
SATISFIED
AVERAGE
DISSATISFIED
HIGHLY DISSATISFIED

( )
( )
( )
( )
( )

14. DO YOU SATISFIED TO TAKE THE BUNGE INDIA DEALERSHIP?

A. YES
B. NO

( )
( )

15. PLEASE MENTION ADVERTISEMENT OFFERED BY BUNGE INDIA

A.
B.
C.
D.
E.

TOO HIGH
HIGH
MODERATE
LOW
TOO LOW

( )
( )
( )
( )
( )

16. PLEASE MENTION SALES PROMOTIONAL EFFORTS OF THE BUNGE

INDIA
A.
B.
C.
D.
E.

EXCELLENT
VERY GOOD
GOOD
AVERAGE
POOR

( )
( )
( )
( )
( )

19. BUNGE INDIA OFFERED ANY FINANCIAL SCHEMES?

A. YES
B. NO

( )
( )

20. WHICH COMPANY GIVES MORE IMPORTANCE TO MARKETING

RESEARCH?
A. BUNGE
B. HINDUSTAN UNILEVER
C. GINNI
D. GOKUL

(
(
(

)
)
)

21. PLEASE MENTION DELEVERY PERIOD OF THE BUNGE INDIA

A.
B.
C.
D.
E.

1-3 DAYS
3-5 DAYS
5-10 DAYS
10-13 DAYS
13-15 DAYS

(
(
(
(
(

)
)
)
)
)

22. GIVE YOUR VALUABLE SUGGESTION TO THE OVERALL CEMENT

INDUSTRY?

Questionnaire for Consumers

1. Do you use soybean oil?
YES

NO

2. Rank the following attributes in soybean oil between 1-5 acording to customer
importance
GRADING
1
2
3
4
5
TASTE
QUALITY
PACKAGING
BRAND IMAGE
PRICE
3.

What influences you to buy brand

1
Advertisement
Attractive packaging
Retailer
Shop display
Price
Discount
Health conscious

4. If particular brand is not available with retailer then you will ..

do not buy
go to another retailer
try another brand

5. What according to you a suitable price for 1 LTR of good quality oil
below 30
between 30 -40
between 40-50
more than 50
6. if your brand id few Rs expensive than it ,,will you go for it ?
YES
NO
7. A sale promotion scheme like Rs 10 off ,250 gm extra or a free product ,would
it affect your purchase decision
YES
NO
8. What size of packaging ,do you normally buy ?
1 LTR
5 LTR

15 LTR

9. Are you happy with the kind of soybean oil brand available in India ?
YES
NO
If no then why not ?