Sunil Project

Distribution Network of PARLE PRODUCT 201
A PROJECT
REPORT
On
Channels of Distribution of
For the partial fulfillment of the degree

course,
Masters of marketing management,
University of Pune.
By
IBMR institute of Management, Pune Page 1

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SUNIL KUMAR
I.b.m.r institute of management
ACKNOWLEDGEMENT
Sitting on the seashore we thought that it was an easy task to dive but it was only
when we dived into the ocean of the project, we realized how much
helpful were so many people to us. Without these people this
exploration could never have been completed. It is a great pleasure for
us to acknowledge the contribution & support of a large number of
individuals of this effort. I would hereby take the opportunity to
express my indebtedness to people who have helped me to accomplish
this task.
Our primary obligation is to respect Placement Coordinator MR.DADA

PATILwho gave us chance to complete our project. I also acknowledge my
gratitude to my faculty member MR.NITIN GUPTA who has been kind enough to
suggest improvement of this work and make it broad based.
I would like to convey my sincere thanks to my centre head MR. BINOD

SHARMA, Regional sales Manager of Bihar, Jharkhand and UP, MR. AJAI
KUMAR DIWEDI, Area sales Manager of Bihar and MR. CHANDAN SINGH,
Sales officer whose guidance and suggestions were of immense value. His kind
support throughout encourages me to complete my project successfully. His
directions and valuable inputs kept me motivated and inspired to keep working
toward the objectives of the study.
We wish to thank all those who are connected with the project for providing us
invaluable suggestions, wonderful experience and learning opportunity.

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TABLE OF CONTENTS
Sr. CONTENTS Page

No. No.
1 EXECUTIVE SUMMARY
2 INDUSTRY FROFIL
2.1 Indian Biscuits Industries
3 The PARLE Profile
4 The Objective of Project
5 Research Methology
5.1 Research Design- Type of Research.

5.2 Sampling Design- Universe under study, sample frame,
sample unit, technique of sampling, sample Size.
5.3Data Collection- both Primary and / or Secondary with
techniques/ tools.
5.4Limitations

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6 DISTRIBUTION NETWORK OF PARLE
7 FINDINGS OF PROJECT
8 SUGGESTIONS
9 CONCLUSION
10 BIBLIOGRAPHY
11 ANNEXURES

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EXECUTIVE SUMMARY
The main objective of the project is to analysis the distribution channel of the PARLE
PRODUCT in Patne (Bihar), and what are they doing to get the customer loyalty to maintain
their supply chain Management .
This is also ascertain that the same channel is used to serve the Hotels, Hospitals, Colleges and
Schools. It is also been analyzed that these channels are best suited to serve them or any
alternative channel is required. It gives the market knowledge and product information,
information about the presence of the rivals of PARLE PRODUCT and all the other options they
have in the market. What is the different channels company should use to gain market share for
different organization.?
In this project my focus is on the current distribution channel used and to know whether it works
efficiently. It is also ascertained that is the market share of certain products gets affected due to
the distribution channel used and then also come to know about the changing requirements, its

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level of acceptability, needs & preferences of customers towards gifting packs and the mode of
service which they offered in hotels, restaurants, hospitals, colleges, schools etc.
PARLE PRODUCT are also looking to tap the market in rural sector, so they also taking into
Consideration the needs and wants of the people there. They are also studying the consumption
habits of the rural people. Like most of them are daily wage earners or small peasants, so they
are studying the buying patterns of them also.
INDUSTRY PROFILE
Fast Moving Consumer Goods popularly known FMCG is as the name suggests is the most
demanded products in the market. It includes everything from food items like flour, Biscuits,

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confectionary, ice creams, etc to body products soaps, face creams to beverages, etc. Consumers
need these things in their everyday life so they invests a good portion of their income in these
things. There are so many companies which are dealing in FMCG products like HUL, Procter &
Gamble, ITC, priya Gold, Britannia, AMUL dealing in dairy products, etc. By the vary nature of
the product the companies are seeing this as a great source of income. As large number of
companies is looking this sector as a profitable venture, so for sustaining their position and gain
new market they have to bring something unique in their products or services to gain position in
the market or to sustain there.
INDIAN BUSCUIT INDUSTRY

 India Biscuits Industry is the largest among all the food industries and has a turn over of
around Rs.3000 crores. India is known to be the second largest manufacturer of biscuits,
the first being USA. It is classified under two sectors: organized and unorganized. It has
80 percent of the total bakery products in India.
 India Biscuits Industry came into limelight in 20th century. Now, it has become one of
the most loved fast food product for every age group. Biscuits are easy to carry, tasty to
eat, cholesterol free and reasonable at cost.
The larger intake of biscuits production states are
 Maharashtra and West Bengal(55% of total Biscuits production)
 West Bengal,
 Andhra Pradesh,
 Karnataka, and Uttar Pradesh.

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 The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to
18.95 lakh tonnes in 1990. Biscuits contributes to over 33 percent of the total production
of bakery and above 79 percent of the biscuits are manufactured by the small scale sector
of bakery industry comprising both factory and non-factory units.
 The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a
motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of
the entire bakery production.
 The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future
of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum
in the next 10 years will be achieved by the biscuit industry of India. Besides, the export
of biscuits will also surpass the target and hit the global market successfully.
PARLE PRODUCT profile
In the year 1929 - A small factory was set up in suburbs of MUMBAI. To manufacture sweets
and toffes The company by the Name of PARLE product emerged in British dominated india. A
decades letters it was up granded to manfacture Biscuits as well as.
Launched in 1939, the more than 50-year-old brand of Parle-G is India's first glucose biscuit to
be introduced from the House of Parle. With a dominant volume share in the glucose biscuit
market, Parle-G is pegged as the largest-selling biscuit brand in the world, making up almost 80
per cent of Parle Products' turnover of Rs 1,300 crore.
In the year 1971-. PARLE had 40% Market share of the total biscuit and a 15% share of the
total confectionary market in India , Parle has grown to become a multi-million dollar

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company. While to consumers it's a beacon of faith and trust, competitors look upon Parle as an
example of marketing brilliance.
Launched in 1998, Hide & Seek was Parle's foray into the premium biscuit market with
offerings in chocolate, orange, coffee and mint.
Parle-G- Parle G is the largest selling biscuit in the world. It has a 70% market share in India in
the glucose biscuit category followed by Britannia, Tiger (17-18%) and ITC's Sunfeast (8-9%).
The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and contributes more
than 50 per cent of the company's turnover (Parle Products is an unlisted company and its
executives are not comfortable disclosing exact numbers). Last fiscal, Parle had sales of Rs 3,500
crore (Rs 35 billion). It also is popular across the world and is starting to sell in Western Europe
and USA
PARLE's brands -
Biscuit goodies: Confectionary:
.
Parle-G GolGappa
Krackjack Classic Mint
Monaco Lite Mint
Monaco Funion Kismi
Kreams Orange Candy
Hide and Seek Mango Bite
Hide and Seek Milano Melody
Poppins
Eclairs- 50 p
Bourbon Melody Softe- 1Rs.
Kismi Bar
Parle Marie Chox
Kacha Mango
Milk Shakti Mazelo
Imli Bite

Kismi Gold
Parle 20-20 Cookies Munch on snacks:

Nimkin Musst Bites
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Products offered by PARLE

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OBJECTIVE OF THE PROJECT

 To study the Distribution channel of the PARLE PRODUCT.
 What should be other alternative channels of distributions to increase share of

consumption in few categories.
 What are the steps PARLE product Ltd is adapting to be market leader and to
differentiate itself from its competitors.
 To analyzing the sensational needs of the customers.
 To study the service and feedback from Retailer and customer in the
terms of distribution channel.

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METHODOLOGY OF THE PROJECT
Research Type:
EXPLORATORY RESEARCH
EXPLANTION: The study was conducted by Parle Products Pvt. Ltd in 6-7 areas of
PATNA mentioned below (source list) for the first time regarding market review and
Distribution analysis between unorganized and organized retail stores.. Thus it is an
exploratory type of research.
Sample Design
A sample design is a definite plan for obtaining a sample for a given population. It refers
to a techniques or procedure adopted in selecting items for the sample.
Sampling:
EXPLANATION: During the course of the study we visited a no. of stores that were
scattered all over Patna (source list mentioned below). Apart from this we had no written
record of the number and names of the stores in the city. It was very difficult to tabulate a
record of all the retailers and wholesalers present in the city and then carry out our study,
in the short span of time that was allotted. As a result we had to select the retailers
according to our convenience. We went to the areas and surveyed all shops that could
possibly be approached.
The following is the sample design that has been adopted for the study.

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 Population:- Finite(patna)
 Sampling Unit:- Areas of patna
 Source list:-
 Unorganized retail stores (Areas):

a. Boaring Road
b. Nageshwar Colony
c. Chitkohra
d. Phulwari Sharif& Birla colony
e. Mitha pur
f. Patna city
g. Mandiry
h. Anisha Bad
i. Kankar Bag
 Organized retail stores:
a. 9 to 9
b. A to Z (Supper Market)
c. Vishal Mega Mart
 Sample size:- A total of 215unorganized retail stores with 7 organized retail
stores and 100 consumers.
Tools and techniques for Data Collection

Tools and techniques for:
Primary Data has been collected through personal contact.
For this purpose both questionnaire and one-on-one interview was

considered with the consumers, shop owners and distributors & suppliers of
the company.
Secondary data has collected from

 Magazines

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 newspaper,
 company literature and
 Websites.
LIMITATIONS OF THE PROJECT

 The survey was conducted in Patna (Bihar) so the results tend to be
region specific and Small city related.
 Though all precautions have been taken to eliminate any personal bias
of respondents and surveyors yet the limited sample size may not fully
represent the population and the varied demographics.

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Distribution Network of PARLE
Evolution over Time
The PARLE’s distribution network has evolved with time. The first phase of the PARLE
distribution network had wholesalers placing bulk orders directly with the company.
Large retailers also placed direct orders, which comprised almost 30 per cent of the
total orders collected. The company salesman grouped all these orders and placed an
indent with the Head Office. Goods were sent to these markets, with the company
salesman as the consignee. The salesman then collected and distributed the products to
the respective wholesalers, against cash payment, and the money was remitted to the
company.
The focus of the second phase, which spanned the decades of the 40s, was to provide
desired products and quality service to the company's customers. In order to achieve
this, one wholesaler in each market was appointed as a "Registered Wholesaler," a stock
point for the company's products in that market. The company salesman still covered the

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market, canvassing for orders from the rest of the trade. He then distributed stocks from
the Registered Wholesaler through distribution units maintained by the company. The
Registered Wholesaler system, therefore, increased the distribution reach of the company
to a larger number of customers.
The highlight of the third phase was the concept of "Redistribution Stockist" (RS) who
replaced the RWs. The RS was required to provide the distribution units to the
company salesman. The second characteristic of this period was the establishment of the
"Company Depots" system. This system helped in transshipment, bulk breaking, and
asa stockpoint to minimize stock‐outs at the RS level. In the recent past, a significant
change has been the replacement of the Company Depot by a system of third party
Carrying and Forwarding Agents (C&FAs). The C&FAs act as buffer stock‐points to
ensure that stock‐outs did not take place. The C&FA system has also resulted in cost
savings in terms of direct transportation and reduced time lag in delivery. The most
important benefit has been improved customer service to the RS.
The role performed by the Redistribution Stockists includes: Financing stocks, providing
warehousing facilities, providing manpower, providing service to retailers, implementing
promotional activities, extending indirect coverage, reporting sales and stock data,
demand simulation and screening for transit damages
Detail Overview
The distribution network of PARLE is one of the key strengths that help it to supply
most products to almost any place in the country from Srinagar to Kanyakumari. This
includes, maintaining favorable trade relations, providing innovative incentives to retailers
and organizing demand generation activities among a host of other things. Each business
of PARLE portfolio has customized the network to meet its objectives. The most
obvious function of providing the logistics support is to get the company’s product to
the end customer.
Distribution System of PARLE
PARLE's products, are distributed through a network of 4,000 redistribution stockists,

covering 6.3 million retail outlets reaching the entire urban population, and about 250
million rural consumers. There are 35 C&FAs in the country who feed these
redistribution stockists regularly. The general trade comprises grocery stores, chemists,
wholesale, kiosks.PAN Shop and general stores. PARLE provides tailor made services to
each of its channel partners. It has developed customer management and supply chain
capabilities for partnering emerging self‐service stores and supermarkets. Around 2,000
suppliers and associates serve PARLE’s 40 manufacturing plants which are decentralized
across 2 million square mile of territory.

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The Distribution Network

PARLE
Carrying & Forwarding Agent
Distributors
Wholesalers
Rural Retailer Urban Retailer

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Consumer

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Distribution at the Villages:
The company has brought all markets with populations of below 50,000 under one rural
sales organisation.The team comprises an exclusive sales force and exclusive
redistribution stockists.The team focuses on building superior availability of products. In
rural India, the network directly covers about 50,000 villages, reaching 250 million
consumers, through 6000 sub‐stockists.
HUL approached the rural market with two criteria ‐ the accessibility and viability. To
service this segment, HUL appointed a Redistribution stockist who was responsible for
all outlets and all business within his particular town. In the 25% of the accessible
markets with low business potential, HUL assigned a sub stockist who was responsible
to access all the villages at least once in a fortnight and send stocks to the markets.
This sub‐stockist distributes the company's products to outlets in adjacent smaller
villages using transportation suitable to interconneting roads, like cycles, scooters or the
age‐old bullock cart. Thus, Hindustan Unilever is trying to circumvent the barrier of
motorable roads. The company simultaneously uses the wholesale channel, suitably
incentivizing them to distribute company products. The most common form of trading
remains the grassroots buy‐and‐sell mode. This enables HUL to influence the retailers
stocks and quantities sold through credit extension and trade discounts. HUL launched

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this Indirect Coverage (IDC) in 1960s.Under the Indirect Coverage (IDC) method,
company vans were replaced by vans belonging to Redistribution Stockists, which
serviced a select group of neighbouring markets.

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Distribution at the Urban centres:
Distribution of goods from the manufacturing site to C & F agents take place through
either the trucks or rail roads depending on the time factor for delivery and cost of
transportation. Generally the manufacturing site is located such that it covers a bigger
geographical segment of India. From the C & F agents, the goods are transported to
RS’s by means of trucks and the products finally make the ‘last mile’ based on the
local popular and cheap mode of transport.
New distribution channels

Project Shakti
This model creates a symbiotic partnership between HUL and its consumers. Started in
the late 2000, Project Shakti had enabled Hindustan Lever to access 80,000 of India's
638,000 villages .HUL's partnership with Self Help Groups(SHGs) of rural women, is
becoming an extended arm of the company's operation in rural hinterlands. Project
Shakti has already been extended to about 12 states ‐ Andhra Pradesh, Karnataka,
Gujarat, Madhya Pradesh, Tamil Nadu, Chhattisgarh, Uttar Pradesh, Orissa, Punjab,
Rajasthan, Maharashtra and West Bengal. The respective state governments and several
NGOs are actively involved in the initiative. The SHGs have chosen to partner with
HUL as a business venture, armed with training from HUL and support from
government agencies concerned and NGOs. Armed with micro‐credit, women from SHGs
become direct‐to‐home distributors in rural markets.
The model consists of groups of (15‐20) villagers below the poverty line (Rs.750 per
month) taking micro‐credit from banks, and using that to buy our products, which they
will then directly sell to consumers. In general, a member from a SHG selected as a
Shakti entrepreneur, commonly referred as 'Shakti Amma' receives stocks from the HUL
rural distributor. After being trained by the company, the Shakti entrepreneur then sells
those goods directly to consumers and retailers in the village. Each Shakti entrepreneur
usually service 6‐10 villages in the population strata of 1,000‐2,000. The Shakti
entrepreneurs are given HUL products on a `cash and carry basis.'
The following two diagrams show the Project Shakti model as initiated by HUL.

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Project Streamline
To cater to the needs of the inaccessible market with high business potential HUL
initiated a Streamline initiative in 1997. Project Streamline is an innovative and effective
distribution network for rural areas that focuses on extending distribution o villages with
less than 2000 people with the help of rural sub‐stockists/Star Sellers who are based in
these very villages. As a result, the distribution network directly covers as of now about
40 per cent of the rural population.
Under Project Streamline, the goods are distributed from C & F Agents to Rural
Distributors (RD), who has 15‐20 rural sub‐stockiest attached to him. Each of these sub‐
stockists / star sellers is located in a rural market. The sub‐stockists then perform the
role of driving distribution in neighboring villages using unconventional means of
transport such astractor and bullock carts. Project Streamline being a cross functional
initiative, the Star Seller sells everything from detergents to personal products.

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Higher quality servicing, in terms of frequency, credit and full‐line availability, is to be
provided to rural trade as part of the new distribution strategy.
The diagram in the next page shows the model of Project Streamline.
Hindustan Unilever Network (HUN)

It is the company's arm in the Direct Selling channel, one of the fastest growing in
India today. It already has about several lakh consultants ‐ all independent entrepreneurs,
trained and guided by HLN's expert managers. HLN has already spread to over 1500
towns and cities, covering 80% of the urban population, backed by 42 offices and 240
service centres across the country. It presents a range of customized offerings in Home
& Personal Care and Foods.
The New Compensation plan for HLN partners provides new exciting ways of earning
substantial income in addition to offering rewards like revenue sharing through the
innovative concept of “pools” Mother Depot and Just in Time System
In order to rationalize the logistics and planning task, an innovative step has been the
formation of the Mother Depot and Just in Time System (MD‐JIT). Certain C&FAs
were selected across the country to act as mother depots. Each of them has a minimum
number of JIT depots attached for stock requirements. All brands and packs required for
the set of markets which the MD and JITs service in a given area are sent to the

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mother depo by all manufacturing units. The JITs draw their requirements from the MD
on a weekly or bi‐weekly basis.
Leveraging Information technology

HUL customers are serviced on continuous replenishment. This is possible because of IT
connectivity across the extended supply chain of about 2,000 suppliers, 80 factories and
7,000 stockists. This sophisticated network with its voice and data communication
facilities has linked more than 200 locations all over the country, including the head
office, branch offices, factories, depots and the key redistribution stockists. They have
also combined backend processes into a common Shared Service infrastructure, which
supports the units across the country. All these initiatives together have
enhanced operational efficiencies, improved the service to the customers and have
brought us closer to the marketplace.
RS Net Initiative:
The RS Net initiative, launched in 2001, aims at connecting Redistribution Stockists
(RSs) through an internet based system. It now covers stockists of the Home &
Personal Care business and Foods & Beverages in close to 1200 towns and cities.
Together they account for about 80% of the company’s turnover. RS Net is one of the
largest B2B e‐commerce initiatives ever undertaken in India. It provides linkages with
the RSs’ own transaction systems, enables monitoring of stocks and secondary sales and
optimizes RS’s orders and inventories on a daily basis through online interaction on
orders, dispatches, information sharing and monitoring. The IT‐powered system has been
implemented to supply stocks to redistribution stockists on a continuous replenishment
basis. Today, the sales system gets to know every day what HUL stockists have sold to
almost a million outlets across the country. Information on secondary sales is now
available on RS Net every day.
RS Net is part of Project Leap. Project Leap begins with the supplier runs through the
factories and depots and reaches up to the RSs. This ensures HUL’s growth by ensuring
that the right product is available at the right place in the right quantities and at the
right time in the most cost‐effective manner. Leap also aims at reducing inventories and
improving efficiencies right through the extended supply chain.
RS Net has come as a force multiplier for HUL Way, the company's action‐plan to not
only maximize the number of outlets reached but also to achieve leadership in every
outlet. RS Net has enabled stockists to place orders on a Continuous Replenishment
System. This in turn has unshackled the field force to solely focus on secondary sales
from the stockists to retailers and market activation. It has also enabled RSs to provide
improved service to retail outlets. Simultaneously, HUL is servicing the rural market,
key urban outlets, and the modern trade as a single concern.

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Adexa iCollaboration suite

In 2000, HUL identified improved supply chain management as a critical business
priority and launched a comprehensive initiative, “Project Leap,” tasked with increasing
supplier/distributor responsiveness, reducing inventory buffers, and optimizing planning
and scheduling. HUL chose the Adexa iCollaboration suite for facilitating centralized
monitoring of the SCM, live customer /supplier collaboration, and integrating demand and
distribution planning with production scheduling. With the aggregated view of data
provided by the iCollaboration suite, HUL was able to combine ,sales and
distribution efforts on the diverse product lines, which resulted in significant savings on
the cost side for inventories and distribution. HUL updates inventory positions, shipments
and customer orders on a daily basis with these software packages and can get a pulse
on the market real time.

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Channel Design
Hindustan Lever Limited (HUL) has two types of channel selling ‐
1 i. Regular (traditional) retail channel,
2 ii.Direct Selling Channel in the name of Hindustan Lever Network
3 (HLN).
HUL has a well entrenched high distribution model which comprises of

C&FAs, Redistribution Stockists, wholesalers and retailers (as shown
earlier). Hindustan Unilever's distribution network is recognized as one of
its key strengths. Its focuses on Product availability, Brand communication,
and higher levels of brand experience.

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Channel Structure (Special Focus is on
Jamshedpur)
Typically, the goods produced in each of the HUL's 40 factories are sent to a depot
with the help of a carrying and forwarding agent (C&FA). The company has its depot
in every state of the country. The C&FA is a third party and gets servicing fee for
stock and delivery of the products. In each town, there is at least a redistribution
stockist (RS) who takes the goods from the C&FA and sells them to retail outlets. In
Jharkhand the C&FA is in Ranchi and Jamshedpur is serviced by 3 Redistribution
Stockists at Sakchi (M/s Om Prakash Agarwal), Bistupur and Parsudih.
The HUL management realized certain problems with the existing sales model. First, the
model was not viable for small towns with small population and small business. HUL
found it expensive to appoint one stockist exclusively for each town. Secondly, the retail
revolution in the country has changed the pattern the customers shop. Large retail self
service shops are becoming commonplace.
In response of these problems, HUL redesigned its sales and distribution channel and the
new system is known as 'diamond model' in the company. At the top end of the
diamond, there are the self service retail stores which constitute 10% of the total FMCG
market. The middle, fatter part of the diamond represents the profit‐center based sales
team. In the bottom of the pyramid is the rural marketing and distribution which
accounts for 20% of the business. As a result of the new distribution plan the company
has planned to reduce the number of RS in small towns.
Redistribution Stockists:
Total number of RS in Jamshedpur = 3 (at Sakchi, Bistupur, Parsudih). This is going to

be reduced to only one with effect from next month of this year.
1 � Sales
 Margin: 4.76% which includes cash discount, unloading expenses from
depot, distribution expenses to retailers, incentive schemes & other incidental
expenses.
2 �Modes
 of transport used: Rickshaw, tempo.
3 �Incentive
 schemes: Before 2000 holiday packages and tours but after 2000 no
non‐monetary incentive for RS.
4 �Software systems and Information System: UNIFY 8.3 (Developed by IBM &
CMC). This software needs to be synchronized daily and the system updates any
information/ incentive schemes / sales figures etc to and from the common shared
platform.
5 �Areas  of Operations: Marked for each of the RS.
6 �Selling  Operations: RSs sells the goods to ‐
0 o Wholesaler (gets 1.5 % max. discount from RS)
1 o Retailers (gets 1.0% max. discount from RS)
7
Wholesaler:
Gets cash discounts and other schemes promoted by HUL (gets points Under Vijeta Scheme).
Retailers:
1 �Total retailer base in Jamshedpur: Approximately 1070.
2 � Margin for both Wholesaler and Retailers : Depends on the product
0 o Soap, detergents ‐ 8% on MRP
1 o Cosmetics ‐ 10% on MRP
2 o Food items ‐ 9% - 11% on MRP
3
Incentive schemes:
Company programs (Scheme Discounts + Cash Discounts)

TPR schemes, as per different MOC, based on Sales (1 % to 10 %)
Vijeta scheme is not for retailers.
Field Sales Force:
To meet the ever‐changing needs of the consumer, HUL has set up a distribution
network that ensures availability of all their products, in all outlets, at all times. This
includes, maintaining favourable trade relations, providing innovative incentives to
retailers and organizing demand generation activities among a host of other things.
The important activities that HUL field sales force does are (i) target chasing and (ii)
reporting on a daily basis. Account information is maintained on palmtops given by HUL.
During our research and informal survey of HUL field sales force, we came to know
that for the last two years, training is not being given at all to the sales force.
HUL has limited the network channel selling to categories of Home & Personal Care
(HPC) and Food products with exclusive brands for this channel. That is, these
particular brands (products) are all exclusive to HLN, specifically developed for the
Direct Selling channel, and not available in the retail channel. The general trade
comprises grocery stores, chemists, wholesaler, kiosks and general stores. Hindustan
Unilever services each with a tailor‐made mix of services.
Initiatives taken to Improve the Distribution Network
HUL has taken the following initiatives to improve its distribution network:
1 �Setting up of a full‐scale sales organization comprising key account management

and activation to impact, fully engage and service modern retailers as they
emerge.
2
3 �Servicing Channel partners and customers with continuous daily replenishment.
4
5 �Leveraging scale and building expertise to service Modern Trade and Rural
Markets.
6
7 �Delivering of sales force to improve response times and service levels.
8
9 �Revamping of its sales organization in the rural markets to fully meet the
emerging needs and increased purchasing power of the rural population. HUL’s
distribution network in rural India already directly covers about 50,000 villages,
reaching about 250 million consumers through about 6,000 sub stockists.
1 �Implementation of supply chain system that connects stockists across the

country, and also includes a back‐end system connecting suppliers, all company
sites and stretching right up to stockists. IT tools have been deployed for
connectivity across the extended supply chains. Backend processes have been
combined into a common Shared Service infrastructure.
2
3 �Launching of Project Shakti through which the company is able to extend its
operations in villages. HUL has also included several NGOs and state
governments as the initiative helps rural women to improve their financial
position.
4
5 �Launching of HUL Network to leverage the channel of direct selling by
presenting customized offerings in 11 home and personal care and food
categories. Started in 2003, it already has a base of 300,000 consultants across
the country.
6
7 �Starting of franchised Lakme Beauty Salons and Ayush Therapy centres to offer
standardized services, in line with the strategy to leverage the equity of its
brands through relevant services.
8
9 �Finding out Innovative ways to reach out to its consumers, particularly in rural
areas by leveraging non‐conventional media like wall paintings, cinema vans,
weekly markets (haats), fairs and festivals.
10
11 �Initiating the concept of Super Value Stores (SVS) in urban areas to partner
traditional stores to provide a range of services ranging from managing their
inventory to setting u POS (point of sale) banners.
12 In addition to this, to boost up traditional retail in the face increasing in‐roads

made by large, modern retailing chains like Spencer’s, Reliance Fresh etc (where
HUL is squeezed harder for discounts), HUL started restructuring some of the
selected SVSs into the form of self‐service retail shops a la modern retails. This
is to protect & maintain the competitive advantage that HUL has over its biggest
competitors in the other markets (e.g., P&G), with its very deep distribution
reach through traditional retail.
13
14 �Launching the Unicare scheme with up market pharmacies and retailers to sale
its premium brands.
15
16 �Undertaking several initiatives for traditional channels in order to improve its
capabilities at the front‐end by developing skills for stockists' sales force. Under
'Project Dronacharya', the FMCG major continuously imparted training to over
10,000 stockist salesmen.
17
18 �Launching of several promotional schemes for existing wholesalers and
distributors. For instance, it has started the ‘Vijeta ‐ Rishta Jeet Ka’ scheme last
year to provide a platform for the wholesaler and HUL to grow the business by
earning points and redeeming them.
Analytical Framework
We tried to analyze HUL’s distribution network in the light of 20 most significant
variables that affect the distribution part f channel management for any organization in
the business of marketing & selling of goods. The variables, their explanations and their
impact on the HUL’s distribution network are given below –
1 1. Number of Consumers
In retail business dominated by traditional stores like Kirana Stores etc (Indian retail
business falls in this category), higher the no. Of consumers, higher will be the no. of
channel intermediaries. The implication of this is that there will be many layers in the
channel in such a
1
situation and managing such a complex distribution network by keeping tabs on every
player will be a huge task. Moreover, Transport & Logistics (“T&L”) support
provided by the organization needs to be well organized.
Implication for HUL
HUL’s key strength lies in managing its distribution network in India. HUL is India’s
largest FMCG company with unmatched distribution network, which is built over a
century focusing on traditional retail. HUL's distribution network comprises about
4,000 redistribution stockists, covering about 6.3 million retail outlets reaching the
entire urban population, and about 250 million rural consumers in India. It’s said
that HUL is able to touch the lives of about 2 out of every 3 Indian consumers.
This achievement is due to the sheer strength of its distribution network (products
should be good as always, otherwise they will find no buyers in the long run). For
a comparison, P&G, world’s largest FMCG major, does not find its name in the list
of top 5 FMCG majors in India as its strength lies in managing modern retail
(biggest example, Wal‐Mart), but not traditional retail.
2. Geographic Dispersion of Consumers

Again, this is closely related with the previous variable, more so in a large,
geographically diverse country like in India. With the increase in this dispersion
level, more intermediaries and more layers are required in the distribution network so
as to effectively reach the length & breadth of the country. Obviously the T&L
management for such an organization would be critical to accomplish this.
Implication for HUL
For a country as geographically diverse as India, pan‐Indian presence & market
leadership can only be possible when products reach even the remotest parts of the
country. HUL is very successful in achieving and maintaining this reach due to its
distribution network.
3. Frequency of Purchase
If the frequency of purchase is high, then transport intensity in “the last mile” (i.e.,
from distributor to retailers) increases manifold. For FMCG products, as a thumb
rule we can take that the mean time between two purchases is ~ 90 days. With the
introduction of smaller form factor packaging for FMCG goods (Re.1 /‐ shampoo
sachets being a very good example), the transport intensity increased further.
Implication for HUL

HUL has about 4000 redistribution stockists, who supply to approx. 6.3 million
Outlets across India. Since manufacturing is done at 40 plants around the country,
rationalizing the logistics and planning is a huge task. An innovative step in that regard
has been the formation of the Mother Depot and Just in Time System (MD‐JIT).
Certain C&FAs were selected across the country to act as mother depots. Each of
them has a minimum number of JIT depots attached for stock requirements. All
brands and packs required for the set of markets which the MD and JITs service in
a given area are sent to the mother depo by all manufacturing units. The JITs draw
their requirements from the MD on a weekly or bi‐weekly basis and supply to
stockists in that area, who, in turn, supply to retailers.
4. Tendency to Postpone Purchase

If the tendency to postpone purchase is lesser, then the product will be easier to
distribute. For example, products/services like Fire Extinguishers, Life Insurance etc. are
such that though these are needed, the overall tendency for the consumers is to
postpone the purchases – these products/services can be termed as “necessary evil”.
For this kind of products, regular reinforcement in the minds of consumers becomes
necessary, sales field force becomes critical and use of “expert” field force is
commonplace.
Implication for HUL
Since FMCG products are used regularly and these products are not “necessary
evils”, distribution network of HUL does not require any expert field force to sell
its products. Only the recent diversification of HUL into Home Water Purification
business (“Pure It” brand) needs dedicated field sales force.
5. Level of Familiarity/Knowledge (of consumer) about the Product
If the level of familiarity of consumer with the product is higher, lower will be the
importance of field sales force and higher will be the importance of channel.
Implication for HUL
Since FMCG goods are very much familiar to consumers, channel and its different
members are very much important to HUL and field sales force’s function is mostly
limited to channel management and ensuring availability of products.
1 6. Degree of Brand Loyalty

If the consumers are more brand loyal, then less “push” will be required from the
channel members to sell the products as there will be sufficient “pull” or demand
from the consumers. This implies that for products with loyal customer base, efforts
from the channel members can be much lesser for final off‐take to happen which in
turn leads to lesser margins to the channel members for those products. For faster
moving products (mostly due to brand pull), retailers may not be averse to slightly
lesser margins as rotation of the products is high and thus his/her ROI is protected.
Retailer’s ROI = Investment × Rotation in Marg
For a FMCG player with a non‐established brand, margins to channel members and
point of sale (POS) advertising are both important.
Implication for HUL
As HUL enjoys leadership position in many FMCG segments like Soaps, Detergents,
Personal Care products etc with strong brands with continuous “pull”, HUL has less
to worry about margins to channel members or POS advertising. But this situation
can change considerably in the face of rise of a significant competitor having almost
the same reach as HUL has (e.g., ITC as it’s eating into HUL’s market share
continuously since it entered FMCG segment).
7. Purchased on Impulse
The impulse purchase products like chocolates, toffees, colas, ice creams etc. follow
Say’s Law which states that “Supply Creates Demand”, implying availability of these
products are the most critical aspect for these to be sold and consumed. This
stresses on the fact that T&L for these products becomes very important.
Implication for HUL
HUL has only one product in this impulse purchase category ‐ Kwality Walls (ice
cream). HUL is #2 after Amul in this FMCG segment. To increase this brand’s sale &
market share, availability, visibility and consumer mind share has to be increased and
improved as well.
8. Level of Involvement (LOI)
Level of involvement (i.e., time & effort spent by the consumer) generally depends
on the product cost. If LOI is higher, lower is the importance of availability and
more critical is the
1
supply of information as consumer decision process depends more on elaborate
information search.
Implication for HUL
As FMCG products are generally Low Involvement Products, HUL has to bother
more on ensuring availability of the products, rather than supply of information.
9. Purchased as a Basket of Goods
The products which are generally bought together by consumers as a basket of goods
(e.g., Rice, Flour powder, Cooking oil etc at the beginning of the month) are to be
made available together for final off‐take.
Implication for HUL

This aspect partly applies to HUL’s products as some products like shampoos, soaps,
detergents may fall in a basket. Efficient distribution network of HUL ensures
availability of all such products at each selling point (individual retailer).
10. Speed & Complexity of Decision Making Process
If the speed is low, then the complexity of the decision making process is higher
and greater is the importance of field sales force and the salespersons’ skill,
knowledge and quality.
Implication for HUL
For FMCG products, complexity of decision making process is not there and so,
speed of decision making is high. This means that for HUL, field sales force is of
limited functional usage.
11. Present of Expert Influencer in the Decision Making Process
Roles of sales field force vary depending upon whether expert influencer (e.g.,
doctors) is present in the process or not. If present, then consumer buying behavior
may become subcontracted and the expert influencer becomes another customer of
the network, apart from the end‐user. In that situation two groups of sales force are
needed to cater to both the segments.
Implication for HUL
For FMCG goods, role of expert influencer is limited. But companies try to associate
brands with regulatory bodies/authorities and show advertising with experts
commenting upon superior virtues of a product in an attempt to make the buying
behavior shift from picking/variety‐
1
seeking to subcontracted and make consumers more loyal to the brand. These
are true for HUL also (e.g., Pond’s Institute).
12. Element of Crisis Purchase Exists
If element of crisis purchase exists in the buying decision of a product (for example,
bulbs & tubes), then its availability becomes critical.
Implication for HUL
None of the products of HUL fall under this category. Nevertheless, availability of
products of HUL is necessary for other reasons.
13. Element of Risk Aversion Exists
If the level of involvement of the consumer in buying decision process is higher, risk
taking tendency of the consumer will be lower or consumer will be more risk
averse. In such a situation, channel members can “unsell” a brand by giving explicit
or implicit suggestions. This implies that in such a case, selling depends on many
cases how the company is taking care of channel members (“keeping them happy”)
such that they are not lured by other competitors or directed by grievances so as to
unsell the brand. This situation is prevalent mostly in Consumer Durables (like TV,
Refrigerators etc.). In FMCG goods, the situation does not exist.
Implication for HUL
HUL is not affected for its FMCG products by this variable. For water purifier “Pure
It”, this can have considerable impact if its sale starts to happen through channel
members rather than by field sales force as is appening now.
14. Perishability of the Product
If the product is perishable (having small shelf life; examples – newspaper, milk,
fruits etc), then the dimension of “speed” in reaching the end consumers becomes
critical & T&L assumes great significance for the company.
Implication for HUL

The FMCG products that HUL sells are not perishable by nature, but have limited
life. So this aspect is not critical for HUL.
15. Time Band Associated with the Purchase of the Product
If there is seasonality/cyclicity for the demand or purchase of the product (examples
– newspaper, milk are most on demand in the 1st three hours of the day; cooking
oil, rice etc
1
grocery items are most on demand in the 1st week of the month), then high T&L
and infrastructural requirements are needed for the “last mile” for the time band
when demand is maximum. It is possible to have idle capacity in the areas
mentioned above outside the peak required time band.
Implication for HUL
For some of the products of HUL, the above stated variable is significant. For
example, in Food segment, Branded Atta – ‘Annapurna’; in segments like Laundry
Detergents, Shampoo & Hair Oil etc. this element of demand time band exist to a
certain extent. This underscores the importance of T&L for HUL as the transport
intensity between distributors and retailers increases in the 1st & 4th week of a month
for the products mentioned above. This is over and above the regular replenishment
of stocks at retailers done by distributors. Festivals like Holi etc. may also increase
the demand for personal care items like soaps, shampoos etc for a short period and
distribution network should be geared up not to miss any such opportunity.
16. Fungibility
Fungibility is the property of a good or a commodity whose individual units are
capable of mutual substitution. Examples of highly fungible commodities are crude
oil, wheat, orange juice, precious metals, and currencies. Fungibility has nothing to
do with the ability to exchange one commodity for another different commodity. It
refers only to the ease of substitution of one unit of a commodity with another unit
of the same commodity for all intents and purposes.
Fungibility is different from liquidity. A good is liquid and tradable if it can be easily
exchanged for money or for another different good. A good is fungible if one unit
of the good is substantially equivalent to another unit of the same good of the same
quality at the same time and place. It is said that commodities are fungible, goods
tangible, services intangible, experiences memorable & transformations are
effectual1.
As an example, one Rs. 100/‐bank note is interchangeable with another. Cash is fungible. A
barrel of West Texas Intermediate crude oil is fungible (direct exchange) with
another barrel of the same crude oil. Oil (of the same type) is fungible.
Fungibility does not imply liquidity, and liquidity does not imply Fungibility. Jewels
can be readily bought and sold (the trade is liquid), but individual diamonds, being
unique, are not interchangeable (diamonds are not fungible). Indian rupee bank notes
are interchangeable in London (they are fungible there), but they are not easily
traded there (they are not liquid in London). In contrast to diamonds, gold coins
are fungible. They are also liquid, especially under a Gold standard. The combination of
Fungibility and liquidity is one of the reasons why gold has successfully served as
money for thousands of ears.
Further, a fungible thing can become non‐fungible under some circumstances. For
example, an old coin or a currency note may assume a value which is way above
its ‘face value’ due to historical reasons or due to some defects in it which makes
it unique from others from a viewpoint which see it differently than its intended
purpose.
The outcome of product Fungibility is that the more fungible a product becomes,
higher is the chance that parts of the distribution channel it can be replaced by IT.
A good example of this is dematerialization (Demat) route for share trading now
where there is no physical existence of shares.
Implication for HUL
As branded FMCG goods are not fungible per se (branding is done to
“decommoditize” & differentiate the product), the importance of channel members
will continue.
17. Degree of Customization Possible
Degree of customization directly affects economies of scale; higher the customization,
lesser the economies of scale. Also, criticality of sales field force increases with
customization levels of the offering.
Implication for HUL
For FMCG products of HUL, which are mass produced, such customizations are not
possible and thus with higher economies of scale, lower criticality of field forces
from the standpoint of customization of product offerings, costs are lower in these
respects with HUL.
18. Negative or Positive Reinforcing Product
Negative reinforcing products are those which are bought to avoid/reduce the problem
(ex. – insurance, washing machine, car battery etc). Positive reinforcing products are
those which gratify the senses (ex. – Perfumes, chocolates, Vacation etc). Shopping
experience becomes a critical aspect for positive reinforcing products to reaffirm the
positive feelings.
Implication for HUL
“Axe” & “Rexona” deodorants are distinctly positive reinforcing products from HUL,
including others like Lux, Lakme etc. So these are seen in most shopping malls etc.
with high visibility displays to reaffirm the feelings. Consumers are willing to
pay higher for these brands.
Distribution Network of PARLE PRODUCT
19. Value/Volume Ratio (Value Density) of the Product

This ratio is very important for both the company and the retailer for its two critical
aspects – T&L cost and retailer ROI/sq. cm (retailers are actually in real estate
business in true sense). Higher the ratio, better it is for both company and the
retailer as higher ratio signifies lesser T&L cost per unit volume transported for the
company and greater ROI per unit of shelf space for the retailer.
Implication for HUL
In general for FMCG goods and for HUL as well, value density is relatively lower.
In addition to this fact, increasing trend towards using smaller pack sizes increases
the packaging density (increased packaging density increase cost to some extent, but
favours mechanized handling greatly, reducing handling costs). Since value density is
less, transportation costs will be higher and thus it is of economic sense to have
manufacturing plants located closure to major marets. This is the reason HUL has
various manufacturing plants (40 in totality) located across India. This is a pointer to
the fact most of the major FMCG players (including HUL) use contracted
manufacturing dispersed across the geographic spread so as to lower transportation
cost component.
IBMR INSTITUTE OF MANAGEMENT, PUNE Page 41

FINDINGS DURING THE PROJECT :-

Findings are basically classified into two parts:-
• Findings about PARLE products
• Findings about distribution channels of PARLE PRODUCT
1)On the basis of PARLE PRODUCT products :-
• While doing all the research, it has been analyzed that competitor
dominates over the market share of PARLE .Some of the products like
Orange cream is being substituted by Britannia & ITC, even PARLE G is
not widely Consumed and doesn’t give worthy contribution for the
progress of PARLE PRODUCT.
• In case of Cookies (Hide & Seek, Hide & Seek Milano, 20-20 Butter rich)
it is found that the user doesn’t want to compromise on the basis of
prices. In place of these Cookies, they were used Britannia
,Sunfeas(ITC) and Priya Gold etc. it gives the higher margin to Retailer.
• In case of Knorr soups, it has been analyzed that in most of the hotels,
restaurants, colleges etc., they serve their own manufacturing tomato
soup and are only used during winters.
• As far as Red Value pack is concerned, it is found that Red label tea
has been substituted by Double diamond &Tata gold tea.
• In case of Tea small SKUs (Dip tea), it has been analyzed that it is
mostly used in hotels and restaurants only.

• It has also been analyzed that the colleges where only mess is
available, PARLE-G and 20-20 Cookies more preferred to eat with the
Tea to make the Breakfast.
• Hospitals canteen where only tea is served, they accepts Red Value
Pack to gain specialization in tea making process.
1) On the basis of distribution channels of PARLE

PRODUCT :-
While considering the findings through distribution channels, it has
two tales like the coin. Firstly, it is from the company point of
view and secondly, from the targeted marketers point of view.
The following findings in targeted marketers

(School&colleges) are:-
• Colleges are located at the remotest areas where it’s not

possible to supply the Biscuits, confectionary and snacks
through retail channel. It increases the cost of distribution and
thus profit margin reduces. On the other hand, targeted
customers are in hype that PARLE products are available in
prime segment.
• Colleges are not buying products in bulk, this is what PARLE

thinks. So, PARLE tries to penetrate itself on the retail market in
the nearby areas rather than colleges. On the other hand,
Targeted marketers think not to give huge amount in exchange
of certain products. They also want to keep some amount in
their hands.

SUGGESTIONS :-
There are certain suggestions which I want to give so as to increase the
coverage of PARLE products.
From schools & College point of view:-

• It is suggested that the main problem is coverage problem. PARLE
should go ahead to supply its products to school & college
canteens. Gradually, the product sales increases and it gives
benefits to PARLE in return.
• Salesman should inform the owner of school canteen that PARLE

products are available in all segments as per their approach.
From Railways & hospitals point of view:-
• Company should sell its products without considering distribution

cost. Company should think that if the Other company covers
Railways and Hospital canteen then why shouldn’t PARLE.
• Company has to establish wide network and should remove

Other companies in order to touch the life of different people
residing in different areas.
• Salesman, while booking an order, has to maintain cordial

relations with the hotel & restaurant manager. For this, company
has to hire such kind of salesman who has good interpersonal
skills along with high convincing power.
• Salesman should have high profile like have good linguistic ability
and attractive personality. He can speak English, Hindi and Local
Language as in some of the hotels; managers are only being

acquainted with English. So, he has the capability to convince the

manager in the known language.
CONCLUSION:-
In the recent years, Indian market is declined due to downtrading. But, FMCG
sector is the only sector which is least affected. In such a critical situation,
PARLE PRODUCT remained market leader in FMCG sector. PARLE believes in
innovativeness as it is the only way to sustain the position in the market and
that’s why HUL remains market leader in all the times. The presence of large
number of companies trying to seize this opportunity, this force the old
PARLE for the change and thus, their transformation has resulted in a new
PARLE, which has successfully faced this challenge and reversed this trend. It
has done so by substantially strengthening their brands and building
capabilities.
The PARLE PRODUCT sees an exciting opportunity for growth. They have 35
powerful brands covering all segments, with leading market positions in
most. Today, these are stronger and more relevant to the consumer than
ever. PARLE focuses more on its distribution network as it has the dream to
touch the life of every people. Presently, two-third of the target has been
achieved. Now, it is trying to turn itself towards the gifting market to cater
the sensational needs of the customer, to give customer something new and
to fulfill the purpose of the customer. They are delivering good services and
the changes they brought in the products are well taken by the customers,
by this they are generating sustainable profitable growth.
BIBLIOGRAPHY

WEBSITES
• www.parleproduct.com
• www.fmcg.com
• www.economictimes.com
• www.marketwatch.com
QUESTIONNAIRE
From Targeteted marketers (Hotel, Schools, Colleges, and
Railways canteen) point of view:-
1. Have you served PARLE product in your Canteen.?
Yes No
2. If No, Why have you not been used
Good Substitutes Higher prices Lower quality

others

3. Which distribution channel is being used to buy these

products
Retail Wholesale Direct from RS

others
4. Any problem regarding its channel of distribution
Yes No
5.Do you want to change the distribution channel
Yes No
6. Any damage occurred due to the distribution channel used
Yes No
7. Will you recommend any of the distribution channels due to

the damages occurred.?
Yes No
8. Which distribution channel will be the best.?
Retail Wholesale Direct from RS

others
9. Rate the following attributes on the basis of your

agreement.
(1-Strongly agree, 2-Agree, 3-Neutral, 4-Disagree, 5-Strongly

disagree)
1 2 3 4 5
1. Parle G are used more
frequently
2. Parle- G are giving good

response
3. Does these 20-20 cookies are
more preferable to use.?
4. 20-20 cookies are giving good
response
5 Hide & Seek attracts more
customers
6. Hide & Seek cater to the needs
of small people
7. Hide & Seek are more
convenient to use
8. Any problem regarding Price of
the product.?
9. PARLE Products are more
convenient to sell.?
10. Response of customers
towards Biscuits during
summers.?
11. Are customers like to have
Biscuits during summers.?
12. Biscuits have any good
impact on the customers during
winter
13. Are customers like to have
Biscuits during winters.?
14 Biscuits are more preferable

in food during winters.?
15. confectionary are used more
frequently
16. Any problem regarding
handling of confectionary.?
17. Snacks are more preferably
used.?
17.Snacks attract more
customers.?

DEMOGRAPHIC PROFILE :
1. Name of the Firm :
2. Name of the Respondent :
3. Age
Below 30 yrs 30-45 yrs 45-60 yrs

above 60 yrs
4. Sex
Male Female
5. Place :
6. Contact No. :
QUESTIONNAIRE
I am the student of Ibmr Institute of Management, Pune, doing my

summer training from PARLE Product Limited. I have to analyze the
market of confectionary items in which various items are placed that
fulfills certain purpose. It would also be analyzed that will this
confectionary be more preferable near Patna.
All the items contained are listed below along with its purpose. Kindly
Cooperate and give me some of your valuable time to help me to do
so.
From Shoppers point of view:-

1CONFECTIONARY :
This contain Kaccha mango bitte, Kismi Toffee,Kismi Bar,Mango

bite,Mazelo,Melody chocolaty,Poppins and Lovemints . its will
basically serve to kids for their purpose of eating and can also be
used for bithday Party.
1. Have you used PARLE chocolate.
Yes No
2. If No, Why have you not been used
Good substitutes Higher prices Lower quality

Unawareness
3. Rate the following attributes on the basis of your agreement
(1-Strongly agree, 2-Agree, 3-Neutral, 4-Disagree, 5-Strongly

disagree)
1 2 3 4 5
1. is this chocolate be preferred
2.is this chocolate fulfills the
purpose
3. Would it be enough for children
4. Would it be more preferable in
birthday party

DEMOGRAPHIC PROFILE:
1. Name of the Respondent :
2. Age
Below 20 Yrs 20-30 Yrs 30-45 Yrs

above 45 Yrs
3. Sex
Male Female
4. Place :
5. Contact No. :

THANK YOU

Sunil Project

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Distribution Network of PARLE PRODUCT 201

For the partial fulfillment of the degree

IBMR institute of Management, Pune Page 1

Our primary obligation is to respect Placement Coordinator MR.DADA

I would like to convey my sincere thanks to my centre head MR. BINOD

IBMR institute of Management, Pune Page 2

Sr. CONTENTS Page

2.1 Indian Biscuits Industries

3 The PARLE Profile

4 The Objective of Project

5.1 Research Design- Type of Research.

IBMR institute of Management, Pune Page 3

IBMR institute of Management, Pune Page 4

IBMR institute of Management, Pune Page 5

IBMR institute of Management, Pune Page 6

INDIAN BUSCUIT INDUSTRY

The larger intake of biscuits production states are

 Maharashtra and West Bengal(55% of total Biscuits production)

 Karnataka, and Uttar Pradesh.

IBMR institute of Management, Pune Page 7

PARLE PRODUCT profile

IBMR institute of Management, Pune Page 8

Krackjack Classic Mint

Monaco Lite Mint

Monaco Funion Kismi

Kreams Orange Candy

Hide and Seek Mango Bite

Hide and Seek Milano Melody

Bourbon Melody Softe- 1Rs.

Parle Marie Chox

Milk Shakti Mazelo

IBMR institute of Management, Pune Page 9

Parle 20-20 Cookies Munch on snacks:

Products offered by PARLE

IBMR institute of Management, Pune Page 11

OBJECTIVE OF THE PROJECT

 What should be other alternative channels of distributions to increase share of

 To analyzing the sensational needs of the customers.

IBMR institute of Management, Pune Page 12

METHODOLOGY OF THE PROJECT

IBMR institute of Management, Pune Page 13

 Sampling Unit:- Areas of patna

 Unorganized retail stores (Areas):

 Organized retail stores:

stores and 100 consumers.

Tools and techniques for Data Collection

Primary Data has been collected through personal contact.

For this purpose both questionnaire and one-on-one interview was

Secondary data has collected from

IBMR institute of Management, Pune Page 14

 company literature and

LIMITATIONS OF THE PROJECT

IBMR institute of Management, Pune Page 15

IBMR institute of Management, Pune Page 16

Distribution Network of PARLE

Evolution over Time

IBMR institute of Management, Pune Page 17

Distribution System of PARLE

PARLE's products, are distributed through a network of 4,000 redistribution stockists,

IBMR institute of Management, Pune Page 18

The Distribution Network

Rural Retailer Urban Retailer

IBMR institute of Management, Pune Page 20