Distribution Channel of an Organization:

A study on ‘Danish Foods Limited’

 Report
on
Distribution Channel of Danish Food Limited

Submitted to:
Mrs. Rubina Malaque
Professor
Department of Management
Faculty of Business Studies
University of Dhaka

Submitted by:
No Name Id
.
1 MD. Abu Zahid Arif 31
2 Halima Afrin 32
3 Masud Rana 33
4 Kaniz Fatema 34
5 Tanjil Hossain 35
6 Md. Kamruzzaman 36
7 Durjoy Barua 38
8 Arafat Abdullah 39
9 Akash Hossain 40 Department of Management
Faculty of Business Studies
University of Dhaka

Date of Submission: June 6, 2016

June 4, 2016

Mrs. Rubina Malaque

Professor in Principles of Marketing
Department of Management
Faculty of Business Studies
University of Dhaka

Subject: Submission of the Report on Distribution Channel of Danish Food Limited

Dear Madam,

We have the pleasure to submit our report on Distribution Channel of Danish Food Limited is
prepared for the purpose of knowing of the Distribution Channel of Danish Food Limited.

This report helped us to know about the Distribution Channel of Danish Foods Limited. We the
members of Group 4 have tried our level best to collect the information for the report. We
hope that the information given in this report will clearly represent status of Distribution
Channel of Danish Food Limited. We wish that you would be very pleased to accept our report
and will consider our shortcomings while you evaluate our report and oblige thereby.

Sincerely yours,

___________

Tanjil Hossain

(On behalf of the group members)

 Acknowledgment

We wish to express our special thanks of gratitude to our teacher Mrs. Rubina Malaque who
has given us the nice opportunity to do this wonderful report on the topic of Distribution
Channel of Danish Food Limited which has also helped us in knowing a lot of information and
we have come to know about Distribution Channel of Danish Food Limited.

Secondly we would also like to thank our friends and group members who have helped us a lot
in finishing this report within the limited time.

We are making this report not only for marks but also for expanding our knowledge.
Thanks again to all who have helped us.
 Table of Contents
Figure No. Title Page No.
Executive Summary Vi
1 Introduction of the Study 7-8
1.1 Origin of the Report 7
1.2 Historical Background 7
1.3 Problem Statement 7
1.4 Significance of the Study 7
1.5 Objectives of the Study 8
1.5.1 General Objective 8
1.5.2 Specific Objectives 8
1.6 Methodology 8
1.6.1 Sources of data collection 8
1.6.1.1 Primary data collection 8
1.6.1.2 Secondary data collection 8
1.7 Scope of the study 8
1.8 Limitations of the study 8
2 Profile of the organization 9-12
2.1 Introduction 9
2.2 Mission 9
2.3 Vision 9
2.4 Board of Directors 9
2.5 Products 10-12
3 Analysis and Findings 13-17
3.1 Analysis 13-16
3.2 Findings 17
4 Recommendations 18
Reference 19
 Executive Summary
Danish foods ltd. is one of the leading food and beverages producing company in Bangladesh
and a part of partext star group. It provides several types of foods and beverages and market
under the brand name of Danish food ltd. Partext group started in 1959 in tobacco trading with
the prudent founder Mr. M A Hashem. Partex group have a stake in tobacco, foods, water, soft
drinks, steel container, cotton and so on. It has achieved quality management certificate ISO
9001-2000 for producing quality products. Danish food ltd is one of the largest distribution
organizations in Bangladesh.

The general objective to analyze the distribution channels of Danish foods ltd and the specific
objectives are to find out about how to distribute products from producer to target consumers,
to find out distribute channels and to find out broad marketing channel. For doing this there
have been made some process in terms of collecting information. There has been used only
secondary data collection method for information and this information has been collected from
company website, prospectus etc.

It is one of the largest distribution networks in Bangladesh. Hundreds of eager energetic and
effective sales representative are working here supported by the dedicated sales and marketing
division. We have some findings as positive and negative. Is has strong supply chain, efficient
team of management, simplified channel of distribution but on the contrary is faces inadequate
capital, inadequate information system and others.

After all there have been given some recommendations to build an effective consumer
relationship management to collect adequate information about customer needs, collect and
analysis about competitors distribution channels to eradicate the threat of distribution
channels of Danish foods limited, develop channels partnership to eradicate the problem of
inadequate capital, access consumer needs and company objective and cultural to design the
channel of distribution and to evaluate channel members qualification and motivate them to
improve to distribution process.
 01: Introduction of the Study
1.1: Origin of the report: We were authorized to prepare a report on Distribution Channel
of Danish Foods Limited for the fulfillment of our course requirement . Our honorable course
teacher has assigned us to report on the corporate social responsibility. We collected the
information about the Distribution channel of Danish Food Limited. Our study will be presented
on the date fixed by the faculty.

1.2: Historical background: Danish Foods Ltd. is one of the leading food and beverage
producing and marketing company Bangladesh and a part of Partex Star Group. It produces
several types of foods and beverages and market under the brand name of Danish Foods Ltd.
Partex Group is among the large Bangladesh private sector manufacturing and service based
enterprise, owning and operating over twenty units giving value for money to all customers.
Partex group started modestly in 1959 in tobacco trading and with prudent entrepreneurship of
our Founder Chairman Mr. M.A. Hashem today we have a stake in tobacco, food, water, soft
drinks, steel container, edible oil, wooden board, furniture, cotton yarn and the IT sector.
Manufacturing sector, this has matured to the multi-million dollar diverse investment of the
Partex Group today. Partex group is another enterprise Danish Food Products Ltd. It has
achieved the quality management certificate ISO 9001-2000. For producing quality product
Danish Condensed Milk has achieved the HACCP certificate at first in Bangladesh. Danish food
products ltd. is the one of the largest distribution network in Bangladesh. Hundreds of eager
energetic and effective sales representatives are working supported by our dedicated sales and
marketing division. In addition Danish food products have vast sales and distribution network of
dealers, Danish have 6 sales depots located at strategic points. It has mobilized adequate
distributors to serve all parts of the regions. Danish food products ltd is one of the largest
distribution organizations in Bangladesh. This network makes possible the flow of goods from
the producer through intermediaries to the buyer.

1.3: Problem statement:  To evaluate the Distribution Channel of Danish Food Limited.
 
1.4: Significance of the study:  Danish Food Limited is one of the biggest manufacturer
companies in Bangladesh. There are very few manufacture companies to compete with it. The
distribution system of this company is very suitable to the customer. This study is of the
distribution channel activities of this company. This study enriches our knowledge about what
distribution channel is, how to work it, distribution channel activities.
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1.5: Objectives of the Study:

1.5.1. General objective:

The general objective is to analyze the Distribution channel of Danish Food Limited.

1.5.2. Specific objectives

 To find out how to distribute they are products to consumer.
 To find out distribution channel of Danish food.
 To find out marketing channel function and flow of Danish food.

1.6: Methodology:

1.6.1: Sources of data collection: In order to make the report more meaningful and
presentable, two sources of data and information have been used widely.

1.6.1.1. Primary data collection: We did not use any primary source.

1.6.1.2. Secondary data collection:

 We have searched through Google and other websites
 Visited company website
 Collected some important files through internet
 Prospectus of the company

1.7: Scope: In this report there have been focused on only the Danish Condensed Milk,
Danish Fruit Juice and Danish Milk Powder and distribution channel of Danish food limited
under Partex group.

1.8. Limitation of the study: The limitations of the report are given below:-

 Company financial information gives us some prohibited because partex group is a

private company
 Company privacy
 Time limitation of one month
 There is not enough information of company website

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 02: Profile of the Organization
2.1: Introduction: Danish Foods Ltd. is one of the leading food and beverage producing and
marketing company Bangladesh and a part of Partex Star Group. It was established in 1959. It
produces several types of foods and beverages and market under the brand name of Danish
Foods Ltd. Danish Foods Ltd. is committed to conduct the business in such a way that
demonstrates the highest ethical standards. The company believes that integrity is the
imperative utility to succeed. Danish Foods Ltd. is serving the best for the consumers to
uphold the superiority in the market. It also believes that success depends on customers. This
is the primary criteria to fulfillment of customer’s needs.

2.2: Mission: To be the country’s most preferred manufacturer of packaged foods and
beverages providing tastier, healthier and lifestyle products for all stages and ages.

2.3: Vision: The vision Danish Foods Limited is given below:-

 Introducing new and innovative products and technologies.
 Assuring quality products from advanced manufacturing facilities.
 Exceeding customer satisfaction and granting trust through quality services.
 Continuous development of people competency.
 Recognizing individual contribution.

2.4: Board of Directors: The organization structure of Danish foods limited in Bangladesh is
given below:

Chairperson
Mrs. Sultana Hashem

Vice Chairman
Mr. Aziz Al-Kaiser

Managing Director
Mr. Aziz Al Mahmood

Director Directo
Tabassum Kaiser Savera H. Mahmood

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2.5: Products: There are many types of Danish food products but mostly famous some
products such as Danish Condensed Milk, Danish Fruit Juice and Danish Milk Powder. It has
achieved the quality management certificate ISO 9001-2000. For producing quality product
Danish Condensed Milk has achieved the HACCP certificate at first in Bangladesh.

Danish condensed milk: Danish Condensed Milk Bd. Ltd. is the most rewarding unit of Partex
Group; the unit produces Danish Condensed Milk in 397 Gm. cans, Danish Milk Powder in 1000
Gm. & 500 Gm. sachet packs and Mango & Orange Juice in 250 ml aseptic packs.
Danish Condense Milk is the first in the Condensed Milk Industry started operation during the
year 1991 in the country and possessing the leading position in the local market. Presently
Danish Condensed Milk is being exported in Nepal, Bhutan and some parts of India in bulk
quantity. It has been well appreciated in those markets as a result it is expanding day by day in
foreign markets.

For quality management Danish Condensed Milk bd. ltd. has achieved the ISO certificate. It also
has achieved HACCP certificate for maintaining stringent quality in all phases of production. The
factory of Danish Condensed Milk Bangladesh Ltd. is located at Shimrail, Kanchpur, and
Narayanganj. It covers two major production ranges “Danish” Sweetened Condensed Milk and
“Silver Cross” Full Cream Sweetened Condensed Milk, both in tin containers of 397 grams.
Being the market leader, latest developed recombination, pasteurization and flash cooling DTD
(Danish Turnkey Dao roes) technology are used to make both these products which are fit for
international standard.

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Brand name: Danish condensed Milk
Pack/ Quantity: Net 397 Gms
Quantity /Carton: 48 PCS.
Carton specification: 5 ply corrugated carton
Can: Metal can

Danish milk powder: This unit of the Group was launched with the aim of marketing high
quality full cream milk powder throughout the nation. The factory of Danish Milk Bangladesh
Ltd. is located at Kanchpur, Narayanganj. The company markets ‘Danish’ brand spray dried full
cream milk powder both in 500 grams and 1000 grams sachet packs, enriched with vitamin A
and D. The products are packed in sachets by highly sophisticated Automatic FFS (Form, Fill and
Seal) machine.

The products are marketed through its vast nationwide distribution network by the company’s
distributors covering the whole of Bangladesh. At a later stage, the company has a plan to
market powder milk in tins & other pack sizes.

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Danish fruit juice: Recently commissioned, this unit produces highest quality fruit drinks
under the brand name Danish Fruit Juices. Bangladeshi customers have welcomed the mango
fruit and orange flavored drink, hygienically packed in 250ml aseptic packs. Every age group can
enjoy this drink, especially when served chilled in our hot summers.

Brand name: Danish Mango Juice

Pack/ quantity: 250 and 200ml
Quantity /Carton: 36pcs and 48pcs
Carton: 3 ply corrugated

Other Products:

Danish foods ltd. produces not only these three products but also more other products. But
these three products are famous. These products are chanachur, tea, biscuits, oil, sacks, semal,
candy etc.

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 03: Analysis and Findings
3.1: Analysis: Danish Condensed Milk Bd. ltd. is the one of the largest distribution network in
Bangladesh. Hundreds of eager energetic and effective sales representatives are working
supported by our dedicated sales and marketing division. We are marketing many products
mainly Danish Condensed Milk, Danish Milk Powder, Danish Fruit Juice. In addition to its vast
sales and distribution network of dealers, it has 6 sales depots located at strategic points.
Danish has mobilized adequate distributors to serve all parts of the regions; it is one of the
largest distribution organizations in Bangladesh. This network makes possible the flow of goods
from the producer through intermediaries to the buyer.

Network and operations:

No. of towns under regular coverage -------------------------------------------------------------177

No. of distributors --------------------------------------------------------------------------------------194

No. of outlets under regular frequency -------------------------------------------------------97,665

No. of sections [each consist of 50 outlets] -----------------------------------------------------1782

No. of Sales Are --------------------------------------------------------------------------------------------14

No. of Sales Territory -------------------------------------------------------------------------------------80

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Distribution Channel Function and Flows: Danish food company ltd. Practices following
distribution function. We are collection this information from marketing executive Mr.Kazi
Hahsan and distributor Md .Lutfor Rahaman.

Physical flow:

Transporters
Suppliers  Transporters Warehouses  Manufacturer  Transpo
Transporters
Transporte
Distributor

Distributor

Transporter
Retailor

Retailor

Transporter Customer

Customer
 14
Title Flow:

Suppliers  Manufacturer  Distributor  Wholesalers & Retailer  Customer

Payment Flow:

Suppliers  Bank  Manufacturer  Bank  Distributor  Bank

Wholesalers

Cash

Retailer

Cash

Customer

Note: Wholesaler pay amount to distributor by bank and sometime cash but Retailer pay by
cash both wholesaler and distributor.
 15
Promotion Flow:

Suppliers  Advertising Agency  Manufacturer  Advertising  Distributor

Wholesalers and Retailers

Customer

The consumer channel of Danish foods: Danish foods limited practices following two-way
consumer channel:

Two level Channel: Three level Channel:

Manufacturer Manufacturer

Distributor Distributor

Retailer Wholesaler

Consumer Retailer

Consumer
 16
3.2: Findings: Danish Foods Limited is playing a vital role in consumer market. It provides
various good quality products to the customers. After collecting and studying the information
some positive and negative aspects are found:
Positive Aspects:
 Danish food has strong supply chain
 Efficient teem of management
 Simplified channel of distribution
 Low cost of transmission and information
 Adopt all new technology and communication system
 Country wild distribution network and who are reliable
 Danish food offer completive price due to having effective distribution channel
Negative Aspects:
 Inadequate of capital
 Inadequate information system and infrastructure
 New channel of distributions may be adopted, as a result if will involve huge capital
investment
 Threat arises from other competitors distribution channel

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 04. Recommendation

After considering the findings and analysis, we offer the followings recommendations in an
effort to improve the operations of distribution channel of Danish food limited.

 Build an effective customer relationship management (CRM) to collect adequate

information about customer needs.
 Collect and analysis information about competitor distribution channel to eradicate the
threat of distribution channel of competitors.
 Develop channel partnership to eradicate the problem of inadequacy of capital.
 Assess customer channel service needs and company objectives and constraints to
design an effective distribution channel.
 Select qualified intermediaries and motivate them to improve efficiency of distribution
channel management.
 Evaluate channel members qualifications according to company's objectives.
 Ensure efficient warehousing, inventory management, transportation and proper
information management to retain country wide distribution.
 Add web store to take order from the customers
 Improve integrated supply chain management to manage different physical distribution
activities.

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 Reference
 http://www.assignment.com/business/marketing-business/.html
 http://partexstargroup.com/
 https://en.wikipedia.org/wiki/Partex_Group

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