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Table of Contents

Executive Summary: ................................................................................................................................ 2

Introduction: ........................................................................................................................................... 2

Objective of the study: ............................................................................................................................ 3

Scope of the Study: ................................................................................................................................. 3

Research Methodology:........................................................................................................................... 4

Limitations of the study: .......................................................................................................................... 4

Distribution Channel:............................................................................................................................... 5

Margins for the distributors: .................................................................................................................... 7

Margins for the retailers: ......................................................................................................................... 7

Major Problems for the distributor: ......................................................................................................... 8

Other products distributed by Distributor: ............................................................................................... 9

Comparative study of Kohinoor brand and Nirodh ................................................................................. 10

Comparative study of Kohinoor brand and other branded condoms: ..................................................... 10

Major Findings: ..................................................................................................................................... 10

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.

About Trans – Gomti Area:


PRAVAH SHUKLA @ IISE 2|P a ge
DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM

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.

Objective of the study:


Following are the objectives of the study:

 To find out the different levels in distribution channel of condoms


 To know about the margins and ROI(Return on Investment) of the distributor
 To find out the major problems for the distributor from retailer end and company end
 To find out the other problems prevailing in the condom industry in general and specially
in Kohinoor Condoms

Scope of the Study:


The study covers the condom industry and mainly Kohinoor condoms which are manufactured
by TTK-LIG Limited and about the distribution channel in Trans-Gomti Area of Lucknow. The
study is done to find about the distribution channel and other points related to it.

PRAVAH SHUKLA @ IISE 3|P a ge


DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM

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:

 2 distributors belonging to Trans-Gomti Area


1. Dwarika Agenices – Kanchanpur Matriyari Road, Opposite Adarsh Nagar Colony
, Chinhat Lucknow.
2. Maa Durga Trading Company, Near Gole Market, Infront of Shakun Medicals,
Nishatganj, Lucknow

Sampling Instrument:

 Personal Interview

Sample Area:

Trans-Gomti Area of Lucknow, Uttar Pradesh, India

Secondary Data:

 Internet

Limitations of the study:


 Distributor, retailer and other people in distribution channel may hide some relevant data
to maintain confidentiality
 Incorrect interpretation of the question asked
 The report suffers from financial and time constraints. Only 2 distributors were covered.
Less sample size
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DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM

 Incorrect information might have been given during the personal interview.

Distribution Channel:
1) Type One

Company

Super Stockist

Stockist

Distributor

Retailer

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Consumer
DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM

2) Type 2

Company

Carry and Forward Agents

Distributor

Retailer

Consumer
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DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM

Margins for the distributors:


 Distributor gets 18% trade margins on different types of condoms.
 Stockist gets 8% margin
 It depends on distributor to distributor how much margin he is getting
 In case of bulk sometimes 2% to 3% margin is reduced

Margins for the retailers:


35% Less in MRP is the margin in Kohinoor Condoms

Kohinoor MRP

Plain 12

Extra Dot 15

Extra Time 20

Triple X 20

25% less in MRP is the margin in Durex Condoms

Durex MRP

Jeans 20

Apple 50

Flavours 35

Pleasuremax 35

Sensation 35

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DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM

Performa 35

Super thin 35

Retails get 35% or 25% less than MRP and sell at MRP to customers/consumers

Major Problems for the distributor:


At the retailer’s end:

 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

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DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM

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)

At the company’s end:

 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.

Other products distributed by Distributor:


The distributor cannot depend only upon condoms to get much money out of it so it distributes
the following products too:

 Glucose
 Complan
PRAVAH SHUKLA @ IISE 9|P a ge
DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM

 Nycil
 Isabgol

Comparative study of Kohinoor brand and Nirodh


 Kohinoor brand condoms are marketed by private company TTK-LIG Limited whereas
Nirodh condoms are promoted by Government of India
 Therefore, there is no or very less competition between them.
 Branded condoms come in flavor and different types like of Kohinoor but Nirodh are
simple and affordable by common man
 People who use branded condoms think and have experienced that branded condoms are
better than Nirodh which is promoted by Government of India.

Comparative study of Kohinoor brand and other branded condoms:


 Durex is the main head of Kohinoor and is an internationally famous condoms brand
which is not only offering condoms but also vibes, lubes and other products related to
health, safe sex and more pleasure during sex.
 In Kohinoor no flavor condoms are present in market but different types like Extra-time
condoms come but now in competition other brands have started flavored condoms.
However, Durex condoms of TTK-LIG offer flavored condoms also and product basked
is wide as compared to other companies.

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.

PRAVAH SHUKLA @ IISE 10 | P a g e


DISTRIBUTION CHANNEL – KOHINOOR CONDOMS (TTK – LIG LTD.) SSCM

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

 Distribution Channels: Understanding and Managing Channels to Market By Julian Dent

 http://www.google.com

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