You are on page 1of 47

‘‘‘‘‘‘‘  ‘

‘ ‘  ‘‘ ‘

‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘

‘
‘
‘
‘
‘
‘
‘
‘
‘‘‘

‘  ‘‘‘


‘
‘
‘
‘
‘
‘
‘
‘
‘
‘‘
 ‘
   ‘
‘’ ‘
 ‘‘’ ’’‘
‘
‘

c
‘
Name: Aditya Kulshrestha

Roll no: P/MN/R/09/004

Course: PGPBM

Batch: 2009-11

Phone No: 9674215646

E-mail id: ricky.adi@rediffmail.com

Company Name: Rasna Pvt. Ltd.

Project Title: Appointing Super Stockists & commencing secondary sales

Project Guide: Sujata Shah‘

Project Supervisor:‘Mr.Alok Singhal(TSM Ghaziabad),

Mr.Saurabh Rajput(TSM Kanpur) &

Mr. Sumit Bhatnagar (RBH Delhi)‘

Start Date of Internship: 13-03 2010

End Date of Internship: 30-05-2010

]
?  
‘

I take pleasure in persuing and submitting the Final Project Report. This project has been a
platform in great leaning and with this it has also provided the platform to acquire knowledge in
this field. I am deeply indebted to my institution ISB&M, Kolkata to provide me an opportunity
to undergo such a project, which gave me such a great experience of market and this interns
would be a milestone in my career path.

The time spend with Rasna has been full of learning and sense of contribution towards the
organizations. I would like to thanks Rasna for giving me such an opportunity of learning and
contributing through this project. I would also like to thanks the people who helped me a lot in
this project a memorable.

My heartfelt thanks also goes to Mr. Guha CEO of Rasna pvt ltd. For giving me such
an opportunity. I am grateful to Mr. G.K.Menon(GM), Mr. Sumit Bhatnagar(RM), Mr. Alok
Singhal(TSM Ghaziabad), Mr. Saurabh Rajput(TSM Kanpur)‘ for their willful co-operation and
co-ordination in the work premises and to help me with relevant details concerning my project
and giving valuable inputs wherever necessary. . I thank the internship mentor, Mrs. Sujata Shah
for having guided and supported me through the course of the internship. I take this opportunity
to thank my parents and friends who have been with me and offered emotional strength and moral
support.

‘‘

Ñ

? ‘ ‘ 

‘

1.‘ Abstract
2.‘ Introduction
3.‘ Objectives
4.‘ Key learning
5.‘ FMCG Industry in India
‰‘ Growth
‰‘ Identification& Specification of market
6.‘ Rasna Marketing Environment
7.‘ Product Range
8.‘ Price
9.‘ Price list of Rasna
10.‘Rasna¶s infallible bedrock of
11.‘Mission, vision, value& promise
12.‘Promotion
13.‘Advertising
14.‘Branding Strategy of Rasna
15.‘What is Channel of Distribution
16.‘Function of a Distribution channel
17.‘Identification of a alternative Distribution Channel
18.‘Nature of work
19.‘Strategy of work
20.‘Selection of right channel
21.‘Super Stockists
22.‘Market Segmentation of Rasna
23.‘Findings & Analysis
24.‘Recommendations
25.‘SWOT Analysis
26.‘Conclusion
27.‘Webliography, Bibliography

‘

?
?
‘

My place of work divided in two regions Ghaziabad Region and Kanpur Region. I worked 1 month in
Ghaziabad then was transfer to Kanpur. In Ghaziabad I worked with Super Stokist Goel Agencies
and his areas like Ghanta ghar, Patel nagar,Hapur,kavi nagar, include areas of Hapur, Meerut,
Khora,Pilkwa. I was under TSM Mr.Alok Singhal there. Their Territory In charge was Mr. Mohit
Gupta.

‘

Ô
Then for 1.5 months I had worked in Kanpur with head quarter Lucknow. There I worked for
Dealers- Ravindra Agencies and Arnav Agencies, with Super Stockist- Deep Enterprises and Sub
Stockist Durga Agencies. I was under TSM Mr. Saurabh Rajput their.



‘
My work was to carry out secondary sale and appointing sub stockiest to enhance the sale of
RASNA. The work was to keep track of stock at depot and to generate purchase order from
wholesalers and substockist. I had to visit retail outlets for generating sale of RASNA and to
settle the damages and other problems in market in order to upgrade the sale. From learning
prospective it was the best experience because the weather was not supportive but still I have
tried a lot and managed all the things quite nicely. I had to maintain proper records in DSR of the
total call so that we could study about the market demand of Rasna as a product in market. I tried
to settle all the problems in the markets of my areas of work ensuring that there is a growth in
sale for the current season as well as coming season.

‘
‘

¦
Ê

Ê‘

Rasna Pvt. Ltd. is one of the largest manufacturer


and exporter of food and beverages from India. In a
country like India it has its strong brand recall for
its soft drink products. There are couples of product
varieties among which instant drink, fruit plus, soft
drink powder & liquid are there. It has a large
channel throughout India and abroad to distribute its products and all the sku¶s. The brand itself is
well-known for its taste, color and packaging to heart Indians. After achieving a grand success in
Indian market it has started operating in the markets of SAUDI ARABIA, U.A.E., Yeman, Qatar,
Bahrain, Nepal, and Kuwait.

I got an opportunity to work with this organization in 13th March. I worked in Ghaziabad & its
interiors then Kanpur as a part of sales force. The work was to handle the distribution channel and to
build a very strong network over that place. Retailing, wholeselling, stockist appointment was also
part of it.

‘
‘
‘
‘
‘

½
 
Ê  ‘

FMCG sector is such a sector where recession can¶t effect. As the population of a country increases
the demand for the FMCG product also increases. A country like India where most of the time of a
year is hot season in the maximum part of the country the demand of soft drink is sky high. Rasna is a
well known FMCG company which deals in soft drink. It¶s conducting its business since last 26 years
and having a strong marketing and sales setup, efficient employees and a good management. Rasna
has a large number of SKUs and variety of flavors so that it can fulfill the various demands of the
customers. Rasna is trying to reach the remote part of India depending on its strong sales setup. My
objective was to participate actively in the process of developing the sales set up and sale volume at
Ghaziabad, Kanpur.
‘

‘ 
Ê  ‘
Ê ‘
‘? ‘
‘
§‘ The main objective of this study lies in studying and understanding the consumers¶ perception
and opinion about the Rasna.
§‘ Apply knowledge and skills that they have been exposed to in the class guidelines.
§‘ Develop knowledge and skills that are difficult to introduce in a class setting, and perhaps
§‘ From the student perspective, the Guidelines will be an excellent source of background
information. The Guidelines will provide an explanation of the various types of programs, and
advice on how to transition from academia to the workplace and to improve the students'
performance on the job.
§‘ From the employer perspective, the Guidelines will also provide excellent background
information on the types of programs available and serve as a continual business reference
source.
§‘ To maintain the standard stacking norms in go-down of Rasna corrugated boxes.
§‘ To find out the problem, if stock is not available in go-down.
§‘ To trace the gap between the dealers perception and the customers perception.
§‘ To establish benchmark measures for the organization and its performance.
§‘ To maintain a record for DSR (daily sales report) and damage goods.
§‘ To tally secondary order against actual delivery by stockiest.
§‘ To see the outlet available in each route are listed or not.
§‘ To assess the organizations market perception as compared to the competitors.
§‘ To identify the principal characteristics that differentiates the organization.

 
‘?Ê‘

§‘ How to implement the theoretical knowledge in the practical opportunities.

§‘ How to complete all my work assignments with the same level of enthusiasm and
professionalism.

§‘ Take every opportunity to prove myself.

§‘ In the technical learning I came to know how to make new stockist, how to deal with the
stockist, whole seller and retailer.

§‘ How to convince the different channel partners.

§‘ How to make strategies in the practical field.

§‘ How to implement the strategies in the market.

§‘ How to manage your customers if there is no stock.

§‘ How to push a product into the distribution channel if there is no demand for the good.

§‘ And finally how to work in an organization.

‘
‘
‘
‘
‘
‘
‘
‘
©
‘Ê
‘Ê‘ÊÊ?‘

The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess
of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well established
distribution network, intense competition between the organized and unorganized segments and low
operational cost. Availability of key raw materials, cheaper labor costs and presence across the entire
value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6
billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in
most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the
untapped market potential. Burgeoning Indian population, particularly the middle class and the rural
segments, presents an opportunity to makers of branded products to convert consumers to branded
products. Growth is also likely to come from consumer 'upgrading' in the matured product categories.
With 200 million people expected to shift to processed and packaged food by 2010, India needs
around US$ 28 billion of investment in the food-processing industry. Around 70 per cent of the total
households in India (188 million) reside in the rural areas. The total number of rural households is
expected to rise from 135 million in 2001-02 to 153 million in 2009-10. This presents the largest
potential market in the world. The annual size of the rural FMCG market was estimated at around
US$ 10.5 billion in 2001-02. With growing incomes at both the rural and the urban level, the market
potential is expected to expand further. An average Indian spends around 40 per cent of his income
on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods
(FMCG) in total individual spending along with the large population base is another factor that makes
India one of the largest FMCG markets. Rapid urbanization, increased literacy and rising per capita
income, have all caused rapid growth and change in demand patterns, leading to an explosion of new
opportunities. Around 45 per cent of the population in India is below 20 years of age and the young
population is set to rise further. Aspiration levels in this age group have been fuelled by greater media
exposure, unleashing a latent demand with more money and a new mindset.
A distinct feature of the FMCG industry is the presence of most global players through their
subsidiaries (HLL, P&G, Nestle, Heinz, Colgate-Palmolive), which ensures new product launches in
the Indian market from the parent's portfolio. Availability of key raw materials and cheap labor costs
give India a competitive edge. Rural and semi-urban markets will drive the FMCG business in the
country to a compounded annual growth of 50% for the next six years. A good number of malls,
nearly 220 in the country, would come up in the next four to five years in semi-urban areas that
would lead to an increase in the demand for the products. Food & Beverages segment leads the
revenue pack followed by Personal Care and Home care. Food & Beverages segment is growing at
9% and dependent on the season. Personal care segment leads the pack with the growth rate of 10%
where Home care segment is growing at 9%.

c

‘
Ê
Ê ‘

§‘ Large untapped rural market


§‘ Export potential
§‘ Increasing disposable income levels will result in faster revenue growth.
§‘ Large market as a whole
§‘ ast variety to attract consumers
‘

‘
‘
‘
‘
Ê
Ê Ê ?
Ê‘?‘  Ê Ê ?
Ê‘ ‘
‘ ?
‘

‘
Rasna is dealing with in house powder and liquid base soft drink products. As Indian climate is
mostly hot the demand of soft drink is sky high. Rasna positions as brand of child drink as well as a
family drink. So the target customer of Rasna is mainly children as well as the adult people. Though
Rasna has a good market in other part of India, at Tripura the market of Rasna is not good. Only the
µ2 Rupees sachet of Fruit Plus¶ is being sold here. So the market of Rasna is confined to some extent.

‘
‘
‘
‘
‘
‘

cc
? ?‘ ?
Ê‘ Ê 
‘‘ 
?
Ê‘
? Ê

‰‘ Chairman & M.D. : Mr. Piruz Khambatta


‰‘ Establishment Year : 1984
‰‘ Nature of Business : Manufacturer & Exporters
‰‘ Level to Expand : International
‰‘ Rasna is a brand owned by Poima Industries which introduced and nurtured the concept of
soft drinks concentrate (SDC) in Indian market.
‰‘ It was the first brand in the country that provided consumers real fruit like flavor & taste.
‰‘ Rasna is proud to receive the Superior Taste Award 2008 instituted by The International
Taste & Quality Institute, Belgium.
‰‘ Rank no.1 in the beverage category as Most Trusted Brand of India by Economic Times.
‰‘ Cola Cola ± introduced as a non aerated cola at Re.0.50 per glass for the first time in the
world.
‰‘ Rasna claims 97.2% market share in non carbonated soft drink concentrate powder
(afaqs.com).
‰‘ o‘Ê‘ ‘‘? ?‘
‘ ??
‘‘
‘‘ Ê
‘ ?ʑ ?
‘

‘
c]

‘?‘

ÊÊ?‘ ?
‘

‘ ‘

MSP

Orange,mango,Nimbu Pani

32 Glass
Orange,Mango,Pine apple,Shahi Gulab,Nimbu Pani,Kala Khatta,Cola cola,Kesar elaichi,
Cool Khus

12Glass
Orange,Mango,Pine apple,Shahi Gulab,Nimbu Pani,Kala Khatta,Cola cola,Kesar elaichi,
Cool Khus

1ka2‘
Orange,Mango

5 Glass
Orange

‘
Ê
‘

5gm
Orange,Mango,Pine apple,Nimbu Pani


23gm
Orange,Mango,Pine apple,Nimbu Pani

200 gm
Orange,Mango,Pine apple,Nimbu Pani

500 gm(pouch & jar)


Orange,Mango,Pine apple,Nimbu Pani

750 gm
Orange,Mango,Pine apple,Nimbu Pani

‘
Ê
?
Ê?‘ ?
‘

 ? ‘‘  ‘

Rasna Instant Drink,Gofrut instant Drink,Litro Pack,Rasna Shake Up,Rasna Fruit Jams,
Body Fuel,Rasna Fruit Cordial,Rasna Flavors,Rasna Rose Syrup,Rasna Ice-Tea.


Ê ‘ ? 
‘

Rasna Curry in a Hurry,Rasna Pickles,Rasna Curry Pastes,Rasna Premium ,


ChutneysRasna Fruit Syrups

c
Ê ‘

The pricing of rasna products are very much different than any other FMCG .pricing is
determined on the basis of volume, channel and category of the outlet. Basically following
pricing method are experienced by company.

‰‘ Discount pricing
‰‘ ariable pricing
‰‘ Skimming pricing
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘


Ê ‘Ê
‘ ‘? ?‘
‘

Product Pack Price Flavors


Size (MRP)

Rs.

Rasna 32 35 Orange Mango Pineapple Nimbu Kesar Sahai Kool Kala Cola
Utsav Glass Pani Elaichi Gulab Khus Khatta Cola

20 20 Orange Mango Pineapple Nimbu Kesar Sahai Kool Kala Cola


Glass Pani Elaichi Gulab Khus Khatta Cola

12 10 Orange Mango Pineapple Nimbu Kesar Sahai Kool Kala Cola


Glass Pani Elaichi Gulab Khus Khatta Cola

5 Glass 5 Orange

Money 85 Orange Mango Nimbu


Saver Pani
Pack

1 ka 2 2 Glass 1 Orange Mango

Rasna 100 gm 60 Orange Mango Pineapple Nimbu


Fruit Pani
Plus
50gm 30 Orange Mango Pineapple Nimbu
Pani

25 gm 15 Orange Mango Pineapple Nimbu


Pani

5 gm 2 Orange Mango Pineapple Nimbu


Pani


? ? ‘Ê ?Ê ‘  ‘ ‘
‘

a‘ Relationship with Children : of all ages


a‘ Marketing and Brand Building
a‘ Strong Distribution
a‘ Expertise in Flavor Technology
a‘ Advanced Manufacturing Facility

Efficient Management of the Production and Market environments will be harnessed further to
bring to the Global consumers, technologically superior products in fruits, vegetables, beverages,
confectioneries... to be a world leader in the Processed Food Industry. A Present focus is towards
bringing to the Global Consumers Ethnic recipes and Food Products from India. Rasna is as
healthy as any fresh juice brand. In addition to the standard fruity flavors, Rasna was made
available in many local flavors such as 'Kala Khatta' (tangy), 'Khus' and 'Rose' that became very
popular. To ensure high quality standards, Rasna's products were manufactured in a totally
automated environment.


Ê Ê!‘ Ê Ê!‘ ?‘‘ Ê ‘

Rasna is a brand that every Indian in the world knows of as standing tall vis-à-vis quality flavor, and
enjoyment in the house market of soft drinks

Mission

Everything we do is inspired by our enduring mission:

§‘ To Refresh the World... in body, mind, and spirit.


§‘ To Inspire Moments of Optimism... through our brands and our actions.

To Create alue and Make a Difference... everywhere we engage

‘
Ê Ê‘
To achieve sustainable growth; we have established a ‘
vision with clear goals.
‘
§‘ " : Maximizing return to shareowners while
being mindful of our overall responsibilities. ‘

§‘ 
"#
 Being a great place to work where people ‘
are inspired to be the best they can be.
‘
§‘ " "#": Bringing to the world a portfolio of
beverage brands that anticipate and satisfy peoples¶ ‘
desires and needs.
‘
§‘ 
$: Nurturing a winning network of partners
and building mutual loyalty. ‘

§‘ #
: Being a responsible global citizen that
‘
makes a difference.
‘
‘


‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘

 
Ê‘

arious promotional activities are implemented by the top level of management. For advertising
purpose various celebrities are get hired by company at contractual basis.

The list of celebrities, who directly involved in success of rasna product .They place the
product in the mind of consumer in different ways«««.

‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘
‘
‘
‘
‘
‘
‘


‘

? 
Ê Ê‘

Advertising has played an important role in the success of the products! ´. The company uses
advertising to trigger desire as often and in as many ways as possible. Throughout the years,
slogan of RASNA have been memorable i.e., I LOE YOU RASNA.

? ‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘

  ‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘

?
Ê‘ ‘ ?‘ ?‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘

l‘ kids making rasna


l‘ Guest ras ki Rachna
l‘ Mango ripe launch
l‘ Homework
l‘ Cricket in drawing room
l‘ Anita talking to doll
l‘ Ankita Jhaveri ±Birthday
l‘ Coffee Tea Rasna
l‘ Pouch pack-Nanhe Munhe Bachhe (jingle)
l‘ Mango Ripe-Multiple Usage
l‘ Ustaad Stealing Drink

]
?  ‘

  ‘

Ê ‘
‘? ‘ ?‘ ? Ê ‘

l‘ Bad shah khan ±school drama


l‘ Theme-Genie with Ustaad & Girl
l‘ Pouch Pack Pandav
l‘ Disneyland Promotion with Genie
l‘ Genie defeats Dino
l‘ Pouch Pack ±Hanuman
l‘ Mango Tree-Genie
l‘ Pouch Pack ±Bakasur
l‘ Rasna Mahasearch
l‘ Nimbu Pani-Friend at home
l‘ Rasna Royale-Rajasthan desert
l‘ Cute kid - Animal
l‘ Yorker ±Kapil dev
l‘ Rasna Theme ±Super Market

‘

‘

 ‘ 
‘
‘ ‘

l‘ Rasna Prankies-Bus
l‘ Rasna Prankies-Uzard
l‘ Rasna Prankies-Chilly
l‘ Rasna Prankies-General Prankies
l‘ Rasna Prankies²Ring Panky (Johny)

‘
]c
?Ê‘
?
‘ ‘? ?‘

‘
Rasna¶s extremely popular advertisements with the tagline, µI love you Rasna,¶ had become an
integral part of the Indian advertising.
The company also had an efficient sales and distribution network across the country so that the
product is available for the target audience. It also employed extra sales force during summer season
to match the demand.
The company emphasizing to increase the number of segments to make Rasna products more
affordable to larger various sections of society and extended its strategy of Rasna being a mass drink
to its global markets.
The company focused on multi-media advertising and promotion, wherein an effective marketing
strategy was adopted to communicate the brand message, using the different media such as T, radio
and print. Mudra Communications, a leading advertising agency, undertook the advertising and
promotional activities.
Product lines were categorized into two brands Rasna Utsav, an improvement over Rasna SDC,
targeted the lower income group in rural markets and Rozana, a mix and serve powdered drink (no
need to add sugar) targeted the convenience seeking semi-urban and urban consumers.
A new µleaf¶ symbol was added to the Rasna brand name, to get the new distinct identity and to
increase brand awareness in the rural market.

Rasna is proud to receive the Superior Taste Award 2008 instituted by The International Taste &
Quality Institute, Belgium given to Mr. Areez Khambatta, Our Founder Chairman and Innovation
Officer at the hands of Hon. Shri Subodh Kant Sahai, Minister of State for Food Processing
Industries, Govt. of India with the blessing of Dasturji (Dr.) Firoze M. Kotwal (High Priest of
Mumbai) in the august presence of Mr. Christian De Bauw of ITQI.
‘

‘
]]

‘?? Ê ‘

‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘

‘‘
‘

ȑ Less in price compare with Cold Drinks


ȑ Good network
ȑ It has good distribution network.
ȑ ariety of Flavors
ȑ Enthusiastic distribution team
‘

‘‘‘‘

ȑ Unsolved DGR (damage goods return) issues.


ȑ Unavailability of stocks at depot.
ȑ Dissatisfaction among the distributors.
ȑ Unwillingness of sales man to go for new outlet
ȑ Unwillingness of retailers to keep the variety of range.

‘‘‘‘‘‘‘‘‘‘‘‘‘


‘

‘‘  ‘‘

ȑ Rasna has very few direct competitors in soft drinks concentrate.

ȑ It can go for the product offerings by introducing more brands like coffee,
choclate, snacks etc.

ȑ It can also give more focus on modern trade.

ȑ Consumers are changing their taste.

ȑ Participation in local festival's (especially during the start of season) & events
must be taken care of.
ȑ Urban market of soft drinks is getting saturated. And also the rural market is
growing at a pace so by effective strategy this can be a future market for the
products.

‘‘‘‘‘‘‘‘‘‘‘‘
‘

ȑ Indirect competition from soft drinks products like Pepsi, coco cola.

ȑ Changing consumer minds as a taste &brand.

ȑ Increase in duplicate products in the market, with low price example-in areas
of Kanpur the alternate available for 1 ka 2 was Trang,where Retailers were
getting more margin then Rasna.

‘
‘
‘
‘
]
‘$‘$"‘ 
#%‘

Distribution (or place) is one of the four elements of marketing mix. An organization or set of
organizations involved in the process of making a product or service available for use or consumption
by a consumer or business user. Frequently there may be a chain of intermediaries; each passing the
product down the chain to the next organization, before it finally reaches the consumer or end-user.
This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains
will have their own specific needs, which the producer must take into account, along with those of the
all-important end-user.

So distribution channel is all about getting your product/service to the right people at the right time
with special consideration for profit and effectiveness. Successful marketing does not end when a
business has developed a product/service and has found its appropriate target audience with a view to
selling it at the right price.

The next issue that needs to be faced is how they are going to distribute and sell this product/service
to these people- the consumers.

When a product/service is purchased by a consumer, it may have been bought directly from the
producer or it may have been through a number of intermediaries like Dealer, Wholesaler, and
Retailer. All of these intermediaries together are known as distribution channels. Small businesses
need to acknowledge the different types of distribution channels to utilize sales potential.

Distribution channels are influenced largely by the type and size of the business and so some of the
channels explained may not be feasible for your particular business.

‘


Ê ‘ ‘?‘Ê
Ê 
Ê‘ ?

The main function of a distribution channel is to provide a link between production and consumption.
Organizations that form any particular distribution channel perform many key functions:

Information : Gathering and distributing market research and intelligence -for


important marketing planning

Promotion : Developing and spreading communications about offers

Contact : Finding and communicating with prospective buyers

Matching : Adjusting the offer to fit a buyer's needs, including grading,

Assembling and packaging

Negotiation : Reaching agreement on price and other terms of the offer

Physical distribution : Transporting and storing goods

Financing : Acquiring and using funds to cover the costs of the distribution channel

Risk taking : Taking some commercial risks by operating the channel

All of the above functions need to be undertaken in any market. The question is - who performs them
and how many levels there need to be in the distribution channel in order to make it cost effective.

‘

Ê
Ê Ê ?
Ê‘ ‘?
?
Ê ‘Ê
Ê 
Ê‘ ?‘ 
 ‘

‘
A number of alternate 'channels' of distribution may be available:

§‘ Direct/sales team: One or more sales teams that you employ directly. You may use multiple
teams that specialize in different products or customer segments.

§‘ Direct/internet: Selling through your own e-commerce website.

§‘ Direct/catalog: Selling through your own catalog.

§‘ Wholesaler/distributor: A company that buys products in bulk from many manufacturers and
then re-sells smaller volumes to resellers or retailers.

§‘ alue-added reseller (AR): A AR works with end-users to provide custom solutions that
may include multiple products and services from different manufacturers.

§‘ Consultant: A consultant develops relationships with companies and provides either specific
or very broad services; they may recommend a manufacturer¶s product or simply purchase it
to deliver a solution for the customer.

§‘ Dealer: A company or person, who buys inventory from either a manufacturer or distributor,
then re-sells to an end-user.
§‘
Retail: Retailers sell directly to end-users via a physical store, website or catalog.

§‘ Sales agent/manufacturer¶s rep: You can outsource your sales function to a company that sells
different manufacturers¶ products to a group of similar customers in a specific territory.

Distribution channels may not be restricted to physical products alone. They may be just as important
for moving a service from producer to consumer in certain sectors, since both direct and indirect
channels may be used. Hotels, for example, may sell their services (typically rooms) directly or
through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc.

There have also been some innovations in the distribution of services. For example, there has been an
increase in franchising and in rental services - the latter offering anything from televisions through
tools. There has also been some evidence of service integration, with services linking together,
particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels


and car rental services. In addition, there has been a significant increase in retail outlets for the
service sector. Outlets such as estate agencies and building society offices are crowding out
traditional grocers from major shopping areas.

Each layer of marketing intermediaries that performs some work in bringing the product to its final
buyer is a "channel level". The figure below shows some examples of channel levels for consumer
marketing channels:


 




 


 



 


 

 


 

&'#
‘" ‘‘$"‘
#In the figure above, Channel 1 is called a "direct-marketing"
channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers.
An example of a direct marketing channel would be a factory outlet store. Many holiday companies
also market direct to consumers, bypassing a traditional retail intermediary - the travel agent.‘


The remaining channels are "indirect-marketing channels".

Channel 2 contains one intermediary. In consumer markets, this is typically a retailer. The
consumer electrical goods market typical of this arrangement whereby producers such as
Sony, Panasonic, and Canon etc. sell their goods directly to large retailers which then sell the
goods to the final consumers.

Channel 3 contains two intermediary levels - a wholesaler and a retailer. A wholesaler


typically buys and stores large quantities of several producers¶ goods and then breaks into the
bulk deliveries to supply retailers with smaller quantities. For small retailers with limited
order quantities, the use of wholesalers makes economic sense. This arrangement tends to
work best where the retail channel is fragmented - i.e. not dominated by a small number of
large, powerful retailers who have an incentive to cut out the wholesaler.

‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘
‘

‘

?
‘ ‘
‘‘‘

Work was to build up distribution network and spin the distribution cycle. Firstly we have to go to the
stockist place; there we have to take a physical stock of the product.

If there is enough stock then we has to go to the market to collect orders from the retailers and the
whole sellers. The whole sellers generally take products in bulck where as retailers takes products in
small quantity but it¶s essential to do retailing as they are large in numbers and your intention to
capture the whole market can only fulfilled if you are able to put your product in every retail shop of
the market.

If there is not enough stock left in the stockist place the or any particular varitiy has been finished
then you have make sure that your stockist gives you order for new stock. The intention should be
that, your stockist stock should fulfill market demand. Then we have to place this order to the
company CNF and from there it is delivered within a day to the stock point.

The other side of this work was consists of rate fixing and discounts. Every person who sells product
has a margin depending on how much amount of product they are taking for sell. Generally the
supper stockist gets maximum margin and then respectively substockist,whole seller, retailer.
Company often introduces schemes and offers to increase sales and to attract the consumers.

This job has also have innovative opportunities and being communicative is the way of this. You
should gather information about locality and where there is market, how far is that from your
stockpoint,how much business opportunity is there, who is the best stockist over that place, then visit
that place , have interaction with him and make him convince to sell your product.

The last but not the least is to making claim of damage products. The company has a policy that it
will make claim of damage products which have already crossed their expiry date. At the time of
taking order from retailers or wholesalers we use to take that refund.

Ñ

?
‘ ‘‘

This job was really challenging and to fulfill each and every operation successfully keeping track
record of every detail is necessary. Keeping a record of every major shop is necessary to make your
sale happen on time and to create new wholesaler and retailer is also important. To create the a new
shop you have to be very familiar with the market, have to go to that shop twice or more, make them
aware about the brand, then convince them and deliver them orders. This also important to give a
glance that at which position in a shop you product is situated, if it is not inside the customers sight
then ask to keep it in proper place and this will definitely increase the demand. One of the very good
strategies is to cover the majority of the shops in the market as put the product in as much shop as you
can. Giving the sellers proper scheme or discounts in proper time is also a good way to increase your
sales.

‘
‘

‘
Ñc

Ê‘ ‘
‘Ê
‘ ?

‘
Rasna is a FMCG product having a large number of SKUs. That¶s why it¶s required two or three
intermediaries in respect of the geographical location.

By considering all the aspects of distribution I select the following two types of distribution channel
at Northern Region to perform the selling activities smoothly.

Ñ]
‘
‘
‘
‘
‘
‘
‘
ÑÑ
‘
 Ê

Super Stockists is the major players in this distribution channel. He maintain stocks and has certain
areas to distribute them he appoints stockists and sub stockists in its area and supply them the stock at
the order placed by them. His major restriction is that he must maintain minimum stock level to
remain a super stockist. At a regular interval he has given certain targets even and could enjoy
incentives and certain percentage of profits over his sales. I was appointed with the super stockist in
Ghaziabad Goel Agencies and Kanpur Deep Enterprises. Goel Agencies was given interiors like
Hapur, Khora, Pilkhwa, and in city, places like Patel Nagar, Ghanta Ghar,ijay
Nagar,Pratapihar,Kavi Nagar,Lohia Nagar. And Deep Enterprises was given 10-12 areas under him
mainly interiors-Barra gaon, Naubasta, Hamirpur, Arra, Karrahi, Ratanlal nagar, Unnao,Saket nagar.
And sub stockist like Durga enterprises was also with him including areas like Kalyanpur, Bithoor,
Shivali, IIT Kanpur.

Super Stockist is the one who undertakes to maintain stocks of a specified product at or above a
certain minimum in return for favorable buying terms granted by the manufacturer of the product.

-The Supper Stockist use to stock all the sku¶s and then sends them to the nearby towns and interiors.

-Must maintain minimum level of stock as specified by company.

-He has power to enjoy profits over his sales.

-He also makes link with various towns and interiors.

Our job was to be very interactive with him, take a regular feedback from him, and always
make him aware to keep all the varieties in the stock, maintain a good delivery procedure, and use
properly ready stock and credit delivery system.

Ñ
?
‘  
?
Ê‘ ‘? ?‘
‘‘

Segmentation is the process of dividing or categorizing market into different groups based
on one or more variables. The segmentation of Rasna is done on following basis.

‘ ?‘ 
‘

‘‘‘‘‘‘‘‘

‘‘GROCERY-‘ outlet primarily engaged in retailing of food &various household items. It


includes Grocers (outlet dealing mainly in grains, provisions, spices, edible oils etc) and
General stores (outlet selling item of day to day requirement& stocking a variety of branded
product) ‘

 ) E&D-Eating and drinking‘ ‘ outlet selling items to eat which are being cooked within
outlet. the outlet having place to Sit are known as E&D type 1 outlet and the outlet are not
having place to sit are Known as E&D type 2 outlet. It includes BAKERY, SOFT DRINK
SHOP, TEA SHOP, and PAAN DUKAAN

 ‘ CONENIENCE- Outlet which are small stores or shops, generally accessible locally.
These are often located along side the busy roads. It includes, STD Booths, beedi shop

ÑÔ

?
Ê‘

‘‘

Targeting means selecting the market segments, which can be served efficiently and
profitably? It is deciding on market coverage strategies. For e.g. in INDIA the main target of
Rasna Company is CHILD, and to some extent concentrated strategy is being implemented
in India for its SHAKE -UP segment.

 Ê
ÊÊ‘

Positioning is a market attraction strategy, which involves placing the product or brand in
the minds of the customers in the target market. For example rasna has positioned it¶s
product in the mind of customer/user by various method
Ëidentifying the differences of the offer vis-à-vis competitors¶ offers.
ËSelecting the differences that have greater competitive advantage
Ëcommunicating such advantage effectively to the target audience. E.g. by using STAR
CELEBRETIES‘

Ѧ
ÊÊ‘‘?? Ê ‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘‘

Fieldwork

The fieldwork was carried out by the researcher mainly with the view to get a generalized market
view about the Northern Region.

The research was mainly carried in the potential markets of Ghaziabad & Kanpur

The Major areas in Ghaziabad Region are

1.‘ Hapur
2.‘ Meerut
3.‘ Modinagar
4.‘ Murad Nagar
5.‘ Pilkhua
6.‘ Khoda
Major Market places in Ghaziabad are-

§‘ Patel Nagar
§‘ Ghanta Ghar
§‘ ijay Nagar
§‘ Pratap ihar
§‘ Kavi Nagar
§‘ Lohia Nagar

The Major Market places in Kanpur are-

§‘ Govind Nagar
§‘ Kalyanpur
§‘ ijay Nagar
§‘ Shastri Nagar
§‘ Pandu Nagar
§‘ Gumti
§‘ Rawatpur
§‘ Daboli

ѽ
§‘ Ratanlal Nagar
§‘ Barra
§‘ Bithoor Gaun
§‘ Awas ikas
§‘ Kakadev
§‘ Saketnagar
§‘ Kidwainagar

ÊÊ ‘
An Insight into the Problems Prevailing In the Prominent Markets of Northern Region:



‘  ‘

1)‘ Sales person avoid going for the new open outlet. They only want to follow the route
book. , I found that TI avoids going for the new outlet, as they are selling rasna. I request
retailer to take rasna from the company, not from the market.

Ê Ê‘  ‘

‘‘" ‘"
‘Ê "'"‘"‘ 
'
$‘"‘
‘
#
$‘

The schemes run by Rasna in the Northern Region market was decide by the Marketing
management and was conveyed henceforth to the distributors who in turn use to run those
schemes in their respective regions through their salesman. The salesman use to misinform the
retailers about the schemes eating away larger portions of it and thus slowly destroying the
market.

Ñ 
] ‘ "
‘ 
'
$‘"‘ (‘
#
$‘Ê‘ "'$"‘


‘ '##
‘
$

The distributors were offering more and more schemes to bigger retailers in comparison to the
smaller ones. When this information reaches to the smaller retailers yet they are potential. This
creates dissatisfaction among them and thus such an anomaly in market is hampering a large
portion of rasna market

Ñ ‘(‘


‘ $
‘
‘
"‘Ê #"‘

The distributors use to infiltrate into each other¶s area and in order to capture more shops they use
to offer more schemes than the other distributor thus creating misbalance in the schemes in that
part. This creates dissatisfaction and ill-feeling among the retailers towards rasna products and
they are shifting more and more towards others products due to this cause.

‘
‘
‘
‘
‘
‘

Ñ©
‘
‘
‘
‘

c‘"‘
'‘ # ##'
‘" ‘
‘
#
$‘)‘
‘$"$‘

In order to clear their previous stocks the distributors use to send only those products during route
selling rather than the demanded flavors, and everyday one or two of the retailers use to cancel
their orders because of the unavailability of their demanded flavors in the supply Auto.

] ‘ #)‘'
‘#)‘
"‘
‘&$(‘
#
$‘‘

The route selling Auto were restricted only to their existing retailers and neither the distributor
nor the salespersons make any effort at all for capturing more retailers or selling to Pepsi
counters. This practice is causing stagnation in the market for rasna.

‘
‘
‘
‘
‘
‘
‘
‘

‘
‘
 
*****‘

‘ ÊÊ ‘

l‘ During the survey it was found that still there are 10% people ,Who have not tasted



l‘ When I interviewed people then many of the people can not


Recall‘ !" ‘advertisement. It shows  #$‘%&‘ '()*+!),)"*‘or ‘

‘‘‘‘‘‘‘‘'()*+!),)"*‘+!‘"%*‘!-%."‘%"‘& ,%/!‘#- "")0!‘

l‘ Tang is main competitor and strategically close performer to rasna

l‘ I find the main thing is that š1‘brand name has very good

Image in consumer¶s mind and they consider it as /)‘‘

‘‘‘‘‘‘ !*2‘%'/#*‘

-)‘) !%"!‘3+()"‘42‘#%"!/,)!‘&%‘- (+"3‘0+$)'‘*-)‘5%'/#*‘.))6


· It tastes like fresh orange juice.

· It is a good thirst quencher, especially in the summer season.

· It is not bitter like other readymade products that are available

In the market.

· It has got real orange in it and when one can feel the pulp and this

c
Makes the drink tastier.

· It is a non-carbonated drink.

· It is as sweet as natural oranges that one buys in the market.

· Due to the natural orange, the juice is healthier.

· It is a ready-to-drink.

The reasons given by consumers for having disliked the product were:

· It is too sweet.

· The consistency is not good.

· Tang is preferred because that is not as sweet as Rasna.

· It is too bitter.

· It is not as sweet as natural orange juice.

· Preferred water to drinking juice.

· It is not exactly a drink for adults; the taste is more to suit children

Rather than adults.

· It tastes more like Pulpy orange/Tang.

The above points under categories liked and disliked are contradictory to

Each other. Both categories have few same points like the bitterness and the

Sweetness of the juice. This contradiction arises due to the following

Reasons:

· Consumers belonged to different age groups ranging from as young

As 5 years all the way to 75 years of age.

· Consumers have different likes and dislikes.

· Consumers have different tastes.

]
· Level of health consciousness is different among different consumers.

At Modern Trade Outlets, where shoppers buy in bulk, could be given away free, if the customer
buys goods worth more than a certain price line. This strategy is already being carried out at the
Food World outlets. It could be introduced even at Fab Mall, Subhiksha, Spencer¶s Daily, and
Big Bazaar etc.

New flavors can be introduced into the market as early as possible because around 30% of the
consumers were eager to know if the drink would come in more flavors and another 10% of the
consumers did not like Orange drink so they were anticipating the probable launch of other
flavors.

· Smaller packs of Rasna ready to make drink can be introduced as, when a customer wants a
small amount of the drink just to quench his thirst for that moment, he would not want to buy a
bigger pack .Therefore, smaller packs of the product do come in handy.

‘
‘
‘
‘
‘
‘
‘
‘
‘
‘

‘

  ?
Ê ‘
ȑ Rasna should more emphasis on its Television advertisements.

ȑ A proper arrangement must be made for recovery of its expiry products. Since in Northern
region many Retailers are annoyed because they have unsetteled expiry .

ȑ The distribution Channel should be focused on General Stores because most of the people
purchase RASNA from general stores.

ȑ The offers, schemes and other promotional activities should be discussed with the TSM
and the salesman and should be motivated to tell it to the retailers so that schemes should
be properly utilized by the retailers and the consumers.

ȑ Company should provide pumflets to retailers and a kind of stand must be provided to
them for their convinence.

ȑ Salesman must be able to and should be asked to write the scheme given to the retailers on
the bill. The TSM should regularly check it.

ȑ Company must ensure the regular supply of all the flavors of all the packaging on time,
specially those product and flavors which has high demand in market


‘

   ‘

The Sampling activity was a good first step into the area of Marketing and Sales. It gave good
amount of exposure mainly because after being trained, trainees were given an opportunity to
carry out the process ourselves. It helped in developing a considerable amount of convincing
skills, because, it took a lot of it to convince the store managers to give us cooler space to cool the
product for 2 hours and even more to convince the customers into tasting the product and to get
reviews from them. A good understanding of the market was accomplished as around 700 people
were spoken to and that group consisted of a variety of customers. This even helped in the-

Polishing of communication skills, a must-have to survive and make it big in the present world. It
even gave a good understanding of behavior of customers when placed in different situations. It
was a good opportunity to work on the skill of patience, as a large number of customers were to
be dealt with. It helped in developing the kind of relations one needs to uphold in the corporate
world and it helped in building up the right attitude. As all the points in the above mentioned
paragraph, are the must-have skills for anyone in the field of Marketing and Sales, the training
period was a good experience and a good stepping stone into the real business world. As a future
line of research, the Marketing and Sales Department at RIP could offer projects like:

· Analysis Impact of advertisements on the Sales of a particular product

· Analysis of major trends in the Indian Non-Alcoholic Beverage market

· Analysis of changing trends in the market for Coca-Cola products


· Formulation of Market penetration strategies

 Ê?‘‘

 Ê
 ‘

§‘ www.rasnainternational.com

§‘ www.google.com

§‘ www. Wikipedia.com

§‘ www.rediff.com

Ê Ê?‘

 ‘

§‘ Philip & Kotler: Marketing management

 ‘? ‘

§‘ The Times Of India


§‘ The Economics Times

You might also like