Companies are now focusing on increasing the volume of their sales.

Volume is considered as key determinant of growth, and hence the whole of the industry is forced to push volume growth. Because of high growth in organized retails, company could reduce their supply chain cost by reducing its dependence of intermediaries. Organized retail have their own systems for inventory management and quick servicing thereby offering this opportunity to reduce their distribution cost by supplying directly to the warehouses of organized retailers in urban areas. Whereas they will have to continue their traditional distribution channel in rural areas where retail is mostly unorganized. They should try to improve the dual distribution which includes independent channels for unorganized retail and self owned channel for unorganized retail. Higher investment in automating operations of urban stockists. There was considerable peaking of sales towards the end of the month. Sometimes 60% of sales to distributors occurred during the last week of month with more than 20 percent occurring on the very last day of month. This could be distributed throughout the month so that pressure on the stockists could be reduced. Company should increase the margin of the stockist. The reason is that because of the increased competition by the competitors like HLL the stockists has to compete aggressively for their products to ensure visibility which is a must for FMCG products. This inversely affected the margin of the retailer.