Professional Documents
Culture Documents
Introduction: ........................................................................................................................................... 2
Research Methodology:........................................................................................................................... 4
Distribution Channel:............................................................................................................................... 5
Conclusions: .......................................................................................................................................... 11
Recommendations: ............................................................................................................................... 11
Bibliography: ......................................................................................................................................... 11
DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM
Executive Summary:
The research report throws light on the distribution channel of Kohinoor condoms which is a
brand name of TTK-LIG Limited. Kohinoor and Durex fall under the brand name of Kohinoor.
This report clearly studies about different levels of distribution channels with respect to
Kohinoor condoms in Trans-Gomti Area of Lucknow, Uttar Pradesh, India. The report also
discusses the various problems faced by the distributor from all ends. Different condom flavors
with their margins are also discussed in this report. The key term ROI(Return on Investment) is
the crux of the report which every distributor wants to earn as higher as he can. The major
findings and recommendations will illustrate more about the distribution channel of Kohinoor
Condoms.
Introduction:
About the group and the company:
The TTK Group is an Indian business conglomerate with a presence across several segments of
the industry including consumer durables, pharmaceuticals and supplements, bio-medical
devices, maps and atlases, consular visa services, virtual assistant services and health care
services. The TTK Group was started in 1928 by T. T. Krishnamachari, and is largely owned by
the family. The group has revenues of over Rs. 10 billion with a presence across India and
several international markets. The group has joint ventures with global corporations such as SSL
International, who are the makers of Durex condoms and Dr. Scholl's foot care products. The
group is also associated with several charitable and social organizations, such as the TTK
Voluntary Blood Bank, the T.T. Ranganathan Clinical Research Foundation (a hospital for
alcohol and drug addiction) and TTK Schools for the underprivileged.
TTK-LIG is a leader in more ways than one. They were the first to introduce variant condoms
like ribbed, dotted, contoured and spermicidal condoms in India. Having pioneered condom
advertising in India, their flagship brand Kohinoor continues to be the market leader with over
40% market share, and Durex, the international bestseller, is the first super premium condom
brand to be marketed in India. TTK-LIG is also a leading supplier of condoms to the
Government of India's Family welfare programme, with over 5 billion condoms supplied so far.
Trans-Gomti area is an important sub-city in the Lucknow metropolitan area with its population
next only to the main city. It is relatively more developed than the mainland due to the
contemporary planning. It is divided roughly into the following areas: Mahanagar, Nirala Nagar,
Aliganj, Janakipuram, Indira Nagar, and the largest of all, Gomti Nagar.
With the population of slightly more than one million it is the most literate area in the entire
Uttar Pradesh state. It mostly has middle class professionals and is more cosmopolitan than the
main city.
t constitutes the central business district of Eastern Uttar Pradesh with many BPOs, R&D
centres, IT, and ITES centres. It also has Indira Gandhi Pratishthan which is the largest science
and technology centre in Uttar Pradesh. Most of the economic activity is confined to Indira
Nagar-Gomti Nagar and Sitapur Road while others are primarily residential
establishments.[citation needed]
The institutional area in Vibhuti Khand, a locality in Gomti Nagar, is fast developing as the
second Central Business District of Lucknow.
Research Methodology:
Primary Data:
Personal Interview
1. Personal Interview of 2 distributors was taken.
A distributor at Chinhat Road – Dwarika Agencies
A distributor in Gole Market , Nishatganj – Maa Durga Trading Company
Sample Unit:
Sampling Instrument:
Personal Interview
Sample Area:
Secondary Data:
Internet
Incorrect information might have been given during the personal interview.
Distribution Channel:
1) Type One
Company
Super Stockist
Stockist
Distributor
Retailer
2) Type 2
Company
Distributor
Retailer
Consumer
PRAVAH SHUKLA @ IISE 6|P a ge
DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM
Kohinoor MRP
Plain 12
Extra Dot 15
Extra Time 20
Triple X 20
Durex MRP
Jeans 20
Apple 50
Flavours 35
Pleasuremax 35
Sensation 35
Performa 35
Super thin 35
Retails get 35% or 25% less than MRP and sell at MRP to customers/consumers
Claim Settlement
o If any good gets damaged then retailer claims for it. Even if expiry date has
arrived due to non-sale of condom then also retailer asks for claim.
o Generally, many retailers give payment but deduct some amount whenever they
make payment.
Market Payment
o Retailers, often, pay very late to the distributor. When distributor demands
repeatedly then only retailer pays the distributor. Some pay after 15 days, some
pay even a month later. 80% of the retailers pay very late.
Payment and Replacement
o If replacement has to be done then payment issue comes in between the
distributor and retailer. Distribution wants payment first, retailer wants
replacement first.
Expiry of the product
o No payment is received from retailer if product gets expired in retail shop due to
non-sale
Strange terms and conditions
o There are many absurd terms and conditions which are demanded by retailer. For
example, if no sale then please take the product back or money will be given only
after 6 months then only retailers will buy condoms in bulk and sell them
One sided trust and loyalty
o Distributors complain that they supply the material in time and trust the retailer
but retailer never makes payment in time and is not loyal towards the distributor.
Huge Credit
o Retailer deals on huge credit with the distributor
Comparing prices
o Generally, retailers compare or tend to compare price of condoms offered by
distributor with the price of Aminabad, Lucknow (known for less expensive
commodities and products)
Claim settlement
o If a scheme is being launched by the company the old products do not cover the
scheme so extra free gifts or additional unit has to become under scheme. Later,
the distributor has to claim for the reimbursement from the company which is
very irritating and time taking.
Terms and Conditions
o There are lot of terms and conditions which are to be fulfilled by distributor in
order to survive in this business. Targets and policies generate problems for the
distributor.
Glucose
Complan
PRAVAH SHUKLA @ IISE 9|P a ge
DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM
Nycil
Isabgol
Major Findings:
Different distributors follow different methods and channels but generally are similar
Huge margins are present in condom industry
Condom industry is growing in Lucknow as now Lucknow is also becoming a
metropolitan city and is copying the culture of big cities and western countries
Condom must be related to health and safety and not with porn or vulgarity
Some distributors complain the distribution channel is very weak and so it is very
difficult to distribute condoms to retailers and get money out of it.
Conclusions:
The distributors as well as retailers earn huge margin in the distribution of condom. People love
to talk about sex but when only in private. When it comes to public some people, often, hesitate
which should not be the case. Using condoms is purely a matter of health and safe sex. The
report presents the distribution channel of known brand Kohinoor Condoms.
Recommendations:
The problems and issues between the retailer and distributor must be minimized in order
to sustain the proper distribution channel of Kohinoor condoms.
TTK LIG should try to capture the rural market also where Nirodh (Government Body)
has taken the charge of distributing condom. Flavoured and branded condoms are much
better than Nirodh Condoms and more reliable too.
The company should provide the full support to distributor to make its business have a
greater magnitude and area coverage.
Bibliography:
The manager's guide to distribution channels By Linda Gorchels, Chuck West, Edward J. Marien
http://www.google.com