ACKNOWLEDGEMENTS

This project is an outcome of not just my efforts but many people have been
involved in this work directly or indirectly through their guidance, help and
encouragement that I wish to thank.

I owe my deep sense of gratitude to Ponnani A.S.Plaza LTD and it`s owner
Ashik for providing me an opportunity to carry out the project study.

I own my deep sense of gratitude to Divya .T.V, Head of the Department

of Commerce and Management Studies, for her sincere supervising and guidance.

I own my deep sense of gratitude to Mini .C.V, Principal Mother Arts and
Science College, Peruvallur for her entire support.

I express my sincere thanks to Distributors and Retailers who helped me in

data collection. My sincere appreciation goes to all my friends. I owe my sincere
thanks to all those individuals who has helped me directly or indirectly to make
it possible and my gratitude remains unforgettable.

Place: Peruvallur

Date:
 DECLARATION

I SHAHALUDHEEN .P.M, hereby declare that the project work entitled “A

STUDY ON THE EFFECTIVENESS OF DISTRIBUTION CHANNEL OF K.P
NAMBOODIRIS TOOTHPASTE” submitted in the partial fulfillment of the
requirement of the award of Degree for Bachelor of Commerce of Calicut
university has been carried out by me under the guidance and supervision of
DIVYA .T.V of Department of Commerce and Management Studies, Mother Arts
and Science College, Peruvallur.

Place: Peruvallur.

Date:

SHAHALUDHEEN .P.M
 CONTENTS

CHAPTER PAGE
NO. NO.
TITLE
1 GENERAL INTRODUCTION 1-17
INTRODUCTION

MARKETTING CHANNELS

SCOPE,OBJECTIVES AND LIMITATION

OF THE STUDY
METHODOLOGY

2 REVIEW OF LITERATURE 18-19

3&4 DATA ANALYSIS AND INERPRITATION 20-30

5 FINDINGS,CONCLUTION 31-33
AND SUGGESTIONS
APPENDIX 34-38

BIBLIOGRAPHY 39-40
CHAPTER:1
GENERAL
INTRODUCTION
INTRODUCTION
 INTRODUCTION

A distribution channel is a chain of business or intermediaries through

which a good or service passes until it reaches the end consumer. It can include
wholesalers, retailers, distributers, and even the internet.

Channels are broken into direct and indirect forms: A direct channel
allows the consumer to buy the good from the manufacturer, and an indirect
channel allows the consumer to buy the good from a wholesaler or retailer.

A distribution channel is a path by which all goods and services must

travel to arrive at intended consumer. Conversely, it also describes the pathway
payments make from the end consumer to the original vendor. Distribution
channel can be short or long and depend on the amount of intermediaries
required to deliver a product or service.
 MARKETTIG CHANNELS

In the modern world, production and distribution have become very

complex. Goods are produced in a far away places, whereas consumers are
scattered throughout country and abroad. Under the circumstances, the producer
will not be able to sell goods directly to the ultimate consumers. The reasons are
may: the producer lacks the financial resources, he has to maintain a large scale
force, the products may not justify the establishment of separate sales outlets,
problem of management and control arise, instead of spending a lot of time and
energy on distribution, one can concentrate on production.

The task of distribution involves transfer of ownership and physical

possession of products and services from the manufacturer to the consumers.
Transfer of ownership is an exchange process and it comprises the channel of
distribution. Transfer of possession involves problems of warehousing and
transportation, called physical distribution.
THE CONCEPT OF MARKETING CHANNEL

A channel of distribution may be defined as “an organized network of

agencies and institutions, which, in combination performs all of the activities
required to link producers with users and users with producers in order to
accomplish the marketing tasks”. The channel enables the seller to find out the
users of its merchandise and help the buyer to obtain the products he wants.

Generally a channel includes three parties – the manufacturer, the

middleman (wholesaler/retailer/agent) and the consumer. A channel of
distribution represents the path for the movement of title, possession and
payment for goods and services.

DISTRIBUTION CHANNELS

The distribution of goods is the most important activity in the process of

marketing. We can define the distribution channel as the set of marketing
institutions participating in the marketing activities in the movement or the flow
of goods or services from the primary producer to the ultimate consumer.

Distribution channels are grouped into two major groups: direct and
indirect. In a direct channel or route, there is more than one middle man in
distribution, linking producer and consumer. They perform the marketing
functions.
CHANNELS OF DISTRIBUTION IN MARKETTING OF
K.P.NAMBOOTHIRI

The most common routes for bringing the products to the market i.e. from
the producer to the consumer are shown in the figures show below:

DIRECT CHANNEL

PRODUCER CONSUMER

INDIRECT CHANNEL

PRODUCER WHOLESALER CONSUMER

PRODUCER WHOLESALER RETAILER CONSUMER

PRODUCER AGENT WHOLESALER RETAILER CONSUMER

PRODUCER RETAILER CONSUMER

DIAGRAM OF DISTRIBUTION CHANNEL

FUNCTIONS OF MARKETTING CHANNELS:

The channels of distribution perform the following:

• Channels provide the route to the link the producers and users. Goods
produced in far away places are made available to the users.
• Goods are stored by the middlemen in the channel and released to the
market depending on demand. They facilitate storage of goods.
• Introduction to new products / merchandising is made easier. They
bring to the notice of their customers new products and help the
manufacturer in demand creation. They also act as good salesmen in
promoting new products.
• Channel members “break the bulk” i.e. products are offered in small
quantities to the buyer.
• Channels providing the financial function. They advance money to the
manufacturers and render credit facilities to the retailers.
• Physical possession and transfer of little to goods are made easier
• They provide market information to the buyers.
• They bring products nearer to the consumer.

CHANNEL CHOISE

The problem of selecting the most suitable channel of distribution for a

product is a complex one. A number of factors have to considered such as the
nature of a product, market trends, competition outlook, pricing policies, typical
consumer goods and the needs of the manufacture himself.
PRODUCT CONSIDERATION

 If a commodity is perishable or fragile, a producer prefers a few

controlled levels of distribution. For perishable goods, a speedy
movement needs a shorter route of distribution.
 For durables and standardized goods, a longer and diversified channel
may be necessary.
 For a custom made product, direct distribution to a consumer or an
industrial user may be desirable.
 For a technical product requiring specialized selling and serving talent,
we have the shortest channel.
 Products of a high unit value are sold directly by travelling salesmen and
not by middlemen.

MARKET CONSIDERATIONS

 For the consumer goods market, retailers and essential, but from the
industrial market we may eliminate the retailer.
 If the market size is larger, we have many channels; in a small market,
direct selling may be profitable.
 For highly concentrated markets, direct selling is adequate enough; but
for widely scattered and diffused markets we must have many channels.
 The size and average frequency of consumer’s orders influence the
decision about the use of a particular channel of distribution.

For the sale of food products, we need both the wholesaler and retailer. A
market implies people who have money and who are willing to purchase want
satisfying goods. The age, income group, sex, vocation, and religion of the
customers will have to be studied to secure adequate information about market
segment or target markets. The buying habits of customers and dealers will also
influence our choice of a channel.

MIDDLEMEN CONCIDERATION

o Service provided by middlemen.

o Availability of desired middlemen.
o Attitude of middlemen towards producer’s policies.

COMPANY CONCIDERATION

 Desire for channel control.

 Ability of management.
 Service provided by sellers.
 Financial resources.

CHANNEL DECISION

A unit must choose whether to attempt extensive, selective or exclusive

distribution or a combination of all the three. The decision is take after a careful
analysis of the product, consumer preference, dealers, company objectives and
polices, competition and other relevant factors. The company must solve the
conflict within the channels and bring its product profitability to the market.
 Once a unit has determined its basic channel design and levels of
distribution, it has to select middlemen, appoint them, motivate their efforts, and
evaluate their utility periodically.

MARKET COVERAGE

Once a unit decides on the general channels to be used, it has to determine

the number of middlemen it needs in each channel, i.e., the intensity of
distribution. There are three alternatives:

1. INTENSIVE DISTRIBUTION:

The strategy of intensive distribution, seeks to obtain maximum exposure

of product at retailer level or wholesaler level. Ultimate consumers will not go
out of their way to purchase a product or will readily accept substitutes, when
brand is not available. The appropriate strategy is to saturate every suitable
retail outlet with the brand.

2. SELECTIVE DISTRIBUTION:

At the retail level, a strategy of selective distribution restricts the sale of

the product to a limited number of outlets. Each store selected must meet the
company’s performance standard while appealing to select target market. As
distribution becomes more selective, the manufacturer may expect a grater
effort on the part of retailer. Retailers are expected to be more willing to accept
the manufacturer’s suggestions and control on marketing strategy. If the product
has a long and useful life and if consumer brand preference can be established,
selective distribution will be very profitable.

3. EXCLUSIVE DISTRIBUTION:

When a product requires aggressive personal selling, a complete

inventory of the product line, repair service, or other special effort on
intermediary may be granted to an exclusive distribution. The manufacturer can
have greater control over prices and markets and he can get the maximum co-
operation from middlemen.
COMPANY PROFILE
HISTORY:

Mr. Ashik started A.S Plaza Agencies in 2012, Ponnani, first he started
with Philips LED bulbs and in 2014 he take the K.P. Namboodiris distribution.
At the starting period company get 300000 profit. Recently he get the
distribution of agro foods, amrithanjal, AVT, sibi detergent. Currently the
company gets 5000000 profit. He has the distribution in Ponnani, Kuttippuram,
Edappal, Changaramkulam and veliyamkod.

He is thinking to introduce an own manufacturing LED bulb.

Also looking name for the new product. Now the company is going in a
profitable way.
SCOPE,OBJECTIVES
& LIMITATION OF
STUDY
SCOPE OF THE STUDY

The study is going to bring out the way and means to improve the
effectiveness of distribution channel in marketing of k.p namboodiris tooth
paste, as it one of the important components in improving the market. The study
also probes the preference of the consumers and their awareness.

OBJECTIVES OF THE STUDY

 To find out effectiveness of the distribution channel.

 To study the retailers reason for promoting K.P Namboodiris tooth
paste level of satisfaction.
 To find out the factor influencing the effective distribution of K.P
Namboodiris tooth paste.
 To suggest suitable plan of action to improve its competitive position.

LIMITATION OF THE STUDY

 Study was restricted only to 150 retailer outlets of Edappal and

Changaramkulam.
 Study was restricted to understand the channel effectiveness of only those
intermediaries that represent the sample collected.
METHODOLOGY
METHODOLOGY
The present study wants to unearth the information about effectiveness of
the distribution channel and potential market for K.P Namboodiris toothpaste,
the retailer reasons for promoting K.P Namboodiris toothpaste’s level of
satisfaction and factors effecting the effective distribution of K.P Namboodiris
toothpaste.

Therefore, research design adopted for the present study is

exploratory in nature. The data collection includes both primary and secondary.

DESIGN OF THE COMPANY

Edappal and Changaramkulam were selected for the study. Both
distributors and retailers were contacted to get information.

SOURCE OF DATA
The study made use of both primary and secondary sources. The
primary sources consist of questionnaires administered to the distributers and
retailers. The secondary sources of information about the tooth paste market and
the company information is collected from the office records and internet.
CHAPTRE:2
REVIEW OF
LITERATURE
INTRODUCTION

This chapter provides previous studies and the theoretical framework

that was used in the study. The objective of the chapter is to concentrate on the
linkage of the relevant findings, mainly on the impact of distribution channel on
firm performance and the impact of innovation on firm performance, so as to
realize the gap in the literature.

LITERATURE REVIEW
It has been evidence for years that distribution channel is important
for its ability to reduce the expenditure of economic transaction (Williamson,
1981). Its capacity of effectively supporting the competitiveness of firms,
namely manufactures, distributers, retailers, and customers, due to the distance
that separate them a part, making distribution channel a significant function to
enhance export performance.

Other studies that found similar result of its essential role of

distribution channel to be a determinant factor for export improvement can be
found in Shouming (1998) and Carlos et al., (2008), besides product, price, and
promotion strategy.
CHAPTR: 3&4
DATA ANALYSIS &
INTERPRETATION
 DATA COLLECION – SURVEY METHOD
Survey method was adopted with structured questionnaire. Two separate
structured questionnaires were designed to elicit responses from retailers
(annexure – 1) and distributors (annexure – 2). The two questionnaires were pre
tested and necessary changes were brought up accordingly.

SAMPLING
For this study the main sample units were the distributors and retailers
who deal directly in K.P Namboodiris products. The sample size is 60 retail
outlets.

DATA PROCESSING AND ANALYSIS

The data collected through questionnaire were analyzed using the latest
statistical tools like SPSS (Statistical Package for Social Science).
TABLE 1: Reason behind selection of K.P Namboodiris toothpaste for
distribution

Sr. No Reason for selecting K.P Percentage

Namboodiris as distribution
1 Famous Brand name 50

2 Cheaper cost 3

3 Low deposit 10

4 High demand in market 7

5 Effective selling 30

total 100

CHART 1: Reason behind selection of K.P Namboodiris toothpaste for

distribution

30%

50%

7%

10%
3%

Famous brand name Cheaper cost Low deposit High demand in market Effective selling

INTERPRETATION

The above table and graph clears that, the reason of selection of K.P
Namboodiris for distribution. The distributer gives more value to the factor
famous brand name & effective selling.
TABLE 2: Satisfactory level of distributer about commission rate

Sr. No Satisfactory level No. of respondent Percentage

1 Satisfied 3 75
2 Unsatisfied 1 25
Total 100

CHART 2: Satisfactory level of distributer about commission rate

25%

75%

Satisfied Unsatisfied

INTERPRETATION

The above table and graph show that 75% distributer are satisfied about
commission rate which is given by the organization & 25% distributers are
unsatisfied about commission rate.
TABLE 3: Information about the delivery of K.P Namboodiris toothpaste in
required quantity

Sr. No Respondent No. of respondent Percentage

opinion
1 Yes 3 75
2 No 1 25
Total 100

CHART 3: Information about the delivery of K.P Namboodiris toothpaste to

distributor in required quantity

25%

75%

Yes No

INTERPRITATION

The table & graph show that 75% distribute get tooth paste in required
quantity while 25% distributer says that they don’t get tooth paste because of
shortage.
TABLE 4: Information about the delivery of K.P Namboodiris toothpaste to
distributor in required time

Sr. No Respondent No of repayment Percentage

opinion
1 Yes 3 45
2 No 1 55
Total 100

CHART 4: Information about the delivery of K.P Namboodiris toothpaste to

distributor in required time

Percentage of respondence
80 75

70

60

50

40

30 25

20

10

0
yes no

The table & graph show that 75% distributor get tooth paste in required time
while 25% of them says they don’t get tooth paste because of transportation
problem or shortage.
TABLE 5: Retailers opinion about getting K.P Namboodiris toothpaste in
required quantity and at required time from wholesalers.

Sr. No Retailer’s opinion No of Percentage

respondents
1 Yes 28 80
2 No 7 20
Total 100

CHART 5: Retailers opinion about getting K.P Namboodiris toothpaste in

required quantity and at required time from wholesalers.

percentage of respondent
90
80
80
70
60
50
40
30
20
20
10
0
yes no

INTERPRETATION

The above table & graph clearly shows 80% retailers says that they got
tooth paste in required quantity & at the time while 20% retailers says that they
are not got tooth paste in required quantity & at proper time because of shortage
& by problem of transportation.
TABLE 6: Information about the getting K.P Namboodiris toothpaste in service
period.

Sr. No Period No of respondent Percentage

1 After 7 days 20 57.15
2 After 15 days 10 28.57
3 Within a month 5 14.28
Total 100

CHART 6: Information about the getting K.P Namboodiris toothpaste in service

period.

Percentage of responce
70

60 57.15

50

40
28.57
30

20 14.28

10

0
After 7 days After 15 days Within a month

INERPRETATION

Above graph shows 57.15% retailers say that they visited wholesalers shop
after 7 days, 28.57% retailers says that they visited after 15 days & 14.28%
retailers says that they visited once in a month.
TABLE 7: Percentage of retailer who force to consumer to purchase K.P
Namboodiris toothpaste

Sr No. Retailers opinion No.of Respondent percentage

1 Yes 10 28.57
2 No 25 71.43
Total 100

CHART 7: Percentage of retailers who force to consumers to purchase K.P

Namboodiris toothpaste.

Percentage of responce

71.43

80
70
60
50 28.57
40
30
20
10
0
Yes No

INTERPRETATION

Above graph shows that 71.43% retailers don’t force customers o by the
K.P Namboodiris toothpaste while 28.57% forces to buy.
TABLE 8: Satisfaction of retailer’s on sale of K.P Namboodiris toothpaste

Sr no Retailer’s opinion No.of respondent Percentage

1 Yes 30 85.71
2 No 5 14.29
Total 100

CHART 8: Satisfaction of retailer’s on sale of K.P Namboodiris toothpaste.

Percentage of responce
85.71

90
80
70
60
50
40 14.29
30
20
10
0
Yes No

INTERPRETATION

Above graph shows that 85.71% of retailers are satisfied with sale of K.P
Namboodiris toothpaste while 14.29% are not satisfied.
TABLE 9: Response to Toothpaste compared to other toothpaste from
Consumer according to retailer’s

Sr no Level of response No.of respondent Percentage

1 High 25 71.42
2 Medium 8 22.87
3 Low 2 5.71
Total 100

CHART 9: Response to toothpaste compared to other toothpaste from consumer

according to retailer’s

Percentage of respondent
80
71.42
70

60

50

40

30 22.87
20

10 5.71

0
High Medium Low

INTERPRETATION

Above graph show that 71.42% of retailers says the sale of K.P
Namboodiris toothpaste is high as compared with other. 22.07% says sale of
K.P Namboodiris toothpaste say sale is low.
CHAPTER 5:
FINDINGS,
CONCLUSION &
SUGGESTIONS
FINDINGS:
After going through the findings from all the Questionnaires designed for the
respondents ( Distributers and Retailers ). K.P Namboodiris toothpaste
positioned as leading in manufacturing of quality toothpaste all over India.

While analyzing the data and keeping in mind the discussion with the
various respondents from ponnani market, there are many competitors for K.P
Namboodiris toothpaste. K.P Namboodiris toothpaste are good quality and test.
Quality and test are the basic element.

A.S Plaza agency distributing the toothpaste through proper channel

and in effective way. The agency using road transport to distribute product.

CONCLUSSION
The whole objectives of the study was to conduct through a survey of
Ponnani, Changaramkulam, Edappal, veliyamkod market to find out the
Effectiveness of the Distribution channel of K.P Namboodiris toothpaste. The
study was crucial because of the facts, which were collected from the market
could provide the crucial data to the organization regarding distribution channel
of K.P Namboodiris toothpaste. Ith was also important because the study even
concentrated on the total cost of the product. This study help the organization to
develop new methods of istribusion and also help to find further fine-turning to
overcome from the loopholes in the distribution channel.

To satsfy the Distributors and wholesalers of K.P Namboodiris

toothpaste available in Ponnani, Changaramkulam, Edappal, Veliyamkod has to
keep proper relation with them and must have to take necessary steps to
overcome from the small problem mentioned in analysis.
SUGGESTIONS

Distribution channel of K.P Namboodiris toothpaste is more

successful in the Ponnani, Changaramkulam, Edappal, Veliyamkod
markets.

Following are some suggestions, which shall help the company to

overcome from the existing problems and strengthen the distribution
network to 100% effectiveness.

 Rates of the toothpaste should be reduced up to certain extent.

 Decrease the lead-time of distribution to wholesalers and
retailers.
 Company should take precautions about maintaining regular
good quality of the toothpaste.
 Company should maintain proper communication with
wholesalers and retailers. Improving the communication system
will require less cost and also fetch higher satisfaction of
wholesalers and retailers.
 Manage proper availability of all type of toothpaste.
 Give effective service in all season.
 Provide satisfactory advertisement aid to wholesalers and
retailers on the shop’s.
 Giving gifts on the occation to the wholesalers and retailers.
APPENDIX
ANNXURE – 1

Questionnaire to the distributors:

Name:……………

Age:……………..

Address:………….

1) Why did you select K.P Nmboodiris toothpaste for distribution?

a) Brand Name c) cheaper Cost

b) High Demand d) others

2) Is the company able to supply able to supply toothpaste to you daily in

time?

a) Yes

b) No

3) Is the company able to supply K.P Namboodiris toothpaste to you in

required quantity?

a) Yes

b) No
4) Does the company provide required support to you for increasing the
sale?

a) Yes

b) No

5) Are you satisfied with commission rate, which is given by the company?

a) Yes

b) No

6) Are you satisfy with the delivery process?

a) Yes

b) No

7) Do you have face any problem in company transportation system?

a) Yes

b) No

If yes please describe-

QUESTIONNAIRES FOR RETAILER:

Name:……….

Age:…………….

Address:………….

1) Whole sale provide K.P Namboodiris toothpaste in require quality and in

required time?

a) Yes

b) No

2) At what frequency you get K.P Namboodiris from wholesaler?

a) After 7 days
b) After 15 days
c) Within a month

3) Do you get all type of K.P Namboodiris tppthpaste from wholesaler?

a) Yes

b) No

4) Do you force consumer for purchasing K.P Namboodiris toothpaste?

a) Yes
 b) No

5) Are you satisfied with the sale of K.P Namboodiris toothpaste?

a) Yes

b) No

6) Do you satisfied in respect of-

a) Rate of communication.
b) Back up service.
c) Any other, please specify.

7) How the consumer give response to K.P Namboodiris toothpaste as

compare with the other toothpaste?

a) High
b) Medium
c) Low

8) Does wholesaler provide the credit facilities are discount to you, if you
purchase K.P Namboodiris toothpaste in large quantity?

a) Yes

b) No
BIBLIOGRAPHY
 BIBLIOGRAPHY

BOOKS:

 “Marketing Management”—A. VINOD

 “Marketing Management”—RAMASAMY .V.S , S. NAMA
KUMARI

WEBSITES:

 www.google.com
 www.wikipedia.com
 www.kpnamboodiris.com