A

Project
Report
On
“A Study on Distribution of P&G products by Pride Distributors Pvt. Ltd. at
Yavatmal District of Maharashtra’

Submitted to
Savitribai Phule Pune University
In Partial Fulfillment of the Requirement for Award of the

Degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
By
Tushar Arunrao Ingole

Under the Guidance of

Dr. Samita Mahapatra

SINHGAD INSTITUTE OF
MANAGEMENT, PUNE 2019-2021

1
 DECLARATION

I, the undersigned, hereby declare that the project report entitled “A study on Distribution of P&G
products by Pride distributors Pvt. Ltd at Yavatmal District of Maharashtra’ ’written and submitted by
me to the Savitribai Phule Pune University, Pune in partial fulfillment of the requirement for the award
of degree of MBA under the guidance of Dr. Samita Mahapatra , is my original work except the topics
on organizational profile and the conclusion drawn there in are based on the material collected by
myself.

Place: Pune TUSHAR INGOLE

Date:

2
 Sinhgad Technical Educational Society’s
SINHGAD INSTITUTE OF MANAGEMENT
(Affiliated to Savitribai Phule Pune University, Approved by AICTE
& Accredited by National Board of Accreditation, Bangalore)
S.No. 44/1, Vadgaon (Bk.), Off Sinhgad Road, Pune 411 041
Telefax : (020) 24356592 E-mail : director_siom@sinhgad.edu Website : www.sinhgad.edu

CERTIFICATE

This is to certify that the project report titled “A study on Distribution of P&G
products by Pride distributors Pvt. Ltd at Yavatmal District of Maharashtra” which
is being submitted herewith for the award of the degree of Master of Business
Administration (MBA) course of Savitribai Phule Pune University, is the result of
the Summer Internship Programme completed by Mr.Tushar Arunrao Ingole
under our supervision and guidance. To the best of our knowledge and belief, the
work embodied in this project report has not formed earlier the basis for the award
of any degree or similar title of this for any other University or examination body.

Dr. Samita Mahapatra Dr. Daniel Penkar

Project Guide Director

Place: Pune

Date: 30/4/2021

3
Company Certificate

4
ACKNOWLEDGEMENT

I take this opportunity and privilege to express my deep sense of gratitude

to Professor M.N.Navale, Honorable Founder President, Dr. (Mrs.)
Sunanda M. Navale, Founder Secretary, the Sinhgad Technical Education
Society, Pune and Dr. Daniel Penkar, Director SIOM. They have been a
source of inspiration to me and I am indebted to them for initiating me in
the field of research.

I am deeply indebted to Faculty Member, SIOM, Dr. Samita Mahapatra

madam my research Guide at Sinhgad Institute of Management, Pune,
without whose help completion of the project was highly impossible.

I wish to express a special thanks to all teaching and non-teaching staff

members of Sinhgad Institute of Management, Pune for their continuous
support. I would like to acknowledge all my family members, relatives and
friends for their help and encouragement.

Place: Sinhgad Institute of Management

Date:
Tushar Arunrao Ingole

5
 Table of Contents

Executive summary...............................................................................................................

Chapter1: Introduction to Study..........................................................................................

Chapter2: Organization Profile.................................

Chapter3: Review of Literature............................................................................................

Chapter4: Research Methodology.......................................................................................

Chapter5: Data Analysis & Interpretations.........................................................................

Chapter6: Observations, Findings and Conclusion.....................................

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EXECUTIVE SUMMARY

FMCG is acronym for a Fast Moving Consumer Goods, which refer to things that they buy from local
supermarkets on daily basis, the things that have high turnover and are relatively cheaper. Products
which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods
(FMCG).some well-known companies of FMCG are Nestlé, Reckitt Benckiser, Procter and gamble,
coca cola, Carlsberg, Pepsi, mars etc.
A Distribution Channel is a set of interdependent organizations (intermediaries) involved in the
process of making a product or service available for use or consumption by the consumer or business
user. In Pride Distributor PVT LTD there are five types of distribution channel, large distribution
channel, medium distribution channel, small distribution channel, wholesalers, and Mini market.
Fast Moving Consumer Goods popularly known FMCG is as the name suggests is the most demanded
products in the market. It includes everything from food items like flour, biscuits, ice creams, etc. to
body products soaps, face creams to cigarettes to beverages, etc. consumers need these things in their
everyday life so they invests.
The Fast Moving Consumer Goods (FMCG) Industry in India include segments like cosmetics,
toiletries, glassware, batteries, bulbs, pharmaceuticals, packaged food products, white goods, house
care products, plastic goods, consumer non-durables, etc. The FMCG Sector in India is the fourth
largest sector in the Indian economy. FMCG Market in Maharashtra is well developed. Maharashtra
is one of the most industrially developed states in India. Most of the major FMCG companies of India
operate in Maharashtra.

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Pride Distributor PVT LTD is Distributor of Nagpur region of Maharashtra for P&G-Gillette India
since December 2005. They have 17 branches all over Nagpur region and more than 600+ employees
working with them. Pride Distributor PVT LTD distributes all P&G-Gillette products in Nagpur region
of Maharashtra. PDPL major brands are Head & Shoulders, Pantene, Pampers, Whisper, Tide, Ariel,
Tube Shave Gel, Ambipure, Olay, Vicks, Vaporub, Action 500, Mach-3, Turbo Mach-8 3, Fusion etc.
there are total five departments which are, finance department, IT department, HR department, sales
department, operation department.
Problem statement of study is to study on Distribution of P&G products by Pride distributors Pvt. Ltd
at Yavatmal district of Maharashtra. Productivity is critical to the success of any business firm that
wants to gain and maintain market share. The organization is in need of an appropriate measure of
customer satisfaction that will lead to productivity from its customers. With the help of distribution
channel the marketer reach the intended final user of their product.

In research methodology the objective of study is to understand the P&G’s Distribution channel by
Pride Distributor of Yavatmal district of Maharashtra and to find out factors influencing P&G’s
product purchase decision by consumers of Yavatmal district of Maharashtra. This research conducted
is a descriptive research. This is descriptive in nature because the study is focused on fact finding
investigation in a structured form and is based on primary data. Primary data has been used in the form
of a questionnaire in order to collect data.

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 CHAPTER 1: INTRODUCTION

• What is FMCG?
FMCG is acronym for a Fast Moving Consumer Goods, which refer to things that we buy from
local supermarkets on daily basis, the things that have high turnover and are relatively cheaper.
Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer
Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG
generally include a wide range of frequently purchased consumer products such as toiletries, soap,
cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables
such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include
pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and
chocolate bars.

A subset of FMCGs is Fast Moving Consumer Electronics which include innovative electronic
products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These
are replaced more frequently than other electronic products. White goods in FMCG refer to
household electronic items such as Refrigerators, T.Vs, Music Systems, etc.

These types of goods are required frequently by consumers and so a large part of the monthly
salary or income will be spent on buying all the goods listed on the consumer's shopping list. New
players keep joining the FMCG circles but find the going tough unless they have a well- planned
strategy along with large cash reserves for their product promotion. A particular FMCG company
might be a strong urban market leader, but will still find it tough to enter the rural markets or a
new Indian state or area. Although FMCG companies generate a large volume of sales and money,
they are always under pressure as they keep facing a lot of competition from their fellow
competitors. Due to this, the FMCG companies try to do their level best in maintaining a fine
balance in their profits and the product price. Thus they keep facing new challenges on their
margins month after month.

One of the key factors for an FMCG company to do well is a proper distribution network. If a
distribution network of a particular FMCG company is well oiled, then that particular FMCG

9
Company will definitely find the going much easier in the market. But companies have to allot a
large chunk of their finances in developing and fine tuning their distribution networks.

The promotion of a product of an FMCG company too is considered very crucial for its success.
The market has many players. Every FMCG company has to fight for its space and audience in the
Indian market. Thus, when a multinational company enters the Indian market, it creates an even
bigger challenge to the existing players on the FMCG scene. If the promotion is done well, then
the manufacturing of the product can even be outsourced. This can save valuable finance for a
company. This in turn will help the company to utilize their energies on other aspects of their
product. Some of the top players on the FMCG scene in India are Hindustan Unilever Ltd., ITC
(Indian Tobacco Company), Nestle India and Dabur India.

So, we can say that FMCG are the products which are:

• Sold quickly at relatively low cost

• Sold in large quantities

• Have low absolute profit but high cumulative profit

FMCG industry provides a wide range of consumables and accordingly the amount of money
circulated against FMCG products is also very high. The competition among FMCG manufacturers
is also growing and as a result of this, investment in FMCG industry is also increasing, specifically
in India, where FMCG industry is regarded as the fourth largest sector with total market size of
US$13.1 billion. FMCG industry is regarded as the largest sector in New Zealand which accounts
for 5% of Gross Domestic Product (GDP).
Some of the merits of FMCG industry, which made this industry as a potential One, are low
operational cost, strong distribution networks, presence of renowned FMCG companies. Population
growth is another factor which is responsible behind the success of this industry.

• Some of the well-known FMCG companies are:

• Nestlé

• Reckitt Benckiser

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 • Unilever

• Procter & Gamble

• Coca-Cola

• Carlsberg

• Pepsi

• Mars

FMCG industry creates a wide range of job opportunities. This industry is a stable, diverse,
challenging and high profile industry providing a wide range of job categories like sales, supply
chain, finance, marketing, operations, purchasing, human resources, product development, and
general management.

• FMCG SECTOR

• Global Level:

Fast-moving consumer goods are the high volume, low priced items that are quickest to leave the
supermarket shelves. They include durable and non-durable goods such as cosmetics, toiletries,
detergents, batteries, plastics goods, paper product, etc. Packaging is vital to the FMCG market
as it is an essential element for proper positioning of the product. Packaging allows effective
communication between consumer and brand owners through graphics, colors, images, product
information and logos. This serves as an important medium for communication and a tool for
companies to distinguish product appearance from that of their rivals. In the fast-moving
consumer goods (FMCG) sector, packaging plays a key role in affecting consumer choice and
thus an important factor in point of purchase decisions. Nowadays, the marketing environment
has become competitive and complex. This is due to inclusion of modern marketing tools such as
packaging, branding and other aspects at a large scale as compared to basic marketing
techniques.

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 In order to enhance product visibility in the market, packaging has emerged as a unique tool to
create a direct impact on consumer perception about the corresponding product. Factor such as
increasing middle-class population in developing countries, changing consumer lifestyles and
technologies advancements to develop eco-friendly packaged products are expected to drive the
demand for FMCG packaging in the near future. Furthermore, changing consumer lifestyles
support the demand for varied consumer product which is expected to enhance the growth of this
market. This has led to differentiated packaging which indirectly affects manufacturers.
However, compliance of stringent environmental regulations related to packaging is a key factor
restraining the market growth. Creation of new materials with the help of sustainable packaging
to offer efficient designs is a key trend driving the FMCG packaging market.

The FMCG packaging market is segmented on the basis of packaging type and end-user
industries. The various type of packaging materials based on the type of product include
protective packaging, flexible packaging, paper based packaging, rigid plastic packaging, custom
packaging and other. These packaging materials face challenges due to sourcing based on
parameter like health consciousness, mobility and consumerism in pharmaceutical and health
products. Shift in global buying patterns of consumers coupled with a surge for value-added
products has led to an increase in consumer willingness for premium products. Thus, to target the
consumer spending for packaging, companies are focusing on developing attractive packaging
products. FMCG packaging serves end-user industries, such as food, beverages, healthcare,
cosmetics and others. Among all the end-user industries, the food & beverages sector serves as
the largest market for packaging companies to invest in the long run. The demand for packaging
in recent years is being recognized across the emerging markets with developed markets
retaining their markets share with a modest growth. However, demand for emerging market is
expected to record a double-digit growth in the next five to six years.

Packaging in the FMCG sectors accounts for a large share in the material cost involved in
developing a finished product. Thus companies at a global level are developing innovative
packaging solutions to minimize the operational cost. The FMCG packaging market is highly
fragmented when analyzed from the supply side perspective with less number of companies
having a substantial share in the total market. This leads to less entry barriers for new entrants in
this market. However, skilled labor, equipment and machinery are identified as barriers for a
sustainable growth in the near future. Nestle S.A., Procter & Gamble Company and PepsiCo Inc.
are among the leading FMCG companies across the globe. Other prominent players of the
FMCG packaging market include Kimberly-Clark, Altria Group, Kraft Foods, Mendel
International Inc., Unilever Group, Amcor Limited and Tetra Pak International.

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• National level :

Fast moving Consumer Goods (FMCG) Industry in India is one of the fastest developing sectors
in the Indian economy. These product have very fast turnaround rate, i.e. the time from
production to the revenue from the sales of the product is very less. In the present economic
scenario, time is regarded as money, so the FMCG companies have to be very fast in
manufacturing and supplying these goods.

The fast moving Consumer Goods (FMCG) Industry in India include segments like cosmetics,
toiletries, glassware, batteries, bulbs, pharmaceuticals, packaged food product, white goods,
house care product, plastic goods, consumer non-durables, etc.

The FMCG market is highly concentrated in the urban areas as the rise in the income of the
middle income group is one of the major factors for the growth of the Indian FMCG market.

The penetration in the rural areas in India is not high as yet and the opportunity of growth in
these areas is huge by means of enhanced penetration in to the rural marketing and conducting
awareness programs in these areas. The scopes for the growth of the FMCG industry are high as
the per capita consumption of the FMCG products in India is low in comparison to the other
developed countries. The manufacturing of the FMCG goods is concentrated in the western and
southern belt of the country. There are other pockets of FMCG manufacturing hubs FMCG
Brands in India are some of the leading revenue earners. The FMCG Industry in India ranks
fourth in the country’s economy. The FMCG brands requires well-established distribution
networks as the competition between the different brands are tremendous. Different FMCG
Brands in India targets different echelons of the society, the elite class, the middle class, as well
as the rural populace in India. The FMCG sector in India has huge growth potential.

Some of the FMCG products such as jams, toothpaste, skincare, shampoos, etc. Have potential
growth opportunities but still these products have high growth opportunities in terms of per
capita consumption. Hindustan Lever is one of the leaders in the FMCG industry in India.
Personal care, cigarettes, and soft drinks are among biggest categories in the Indian FMCG
Industry

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 FMCG Sector in India

The FMCG Sector in India is the fourth largest sector in the Indian economy. As
per the reports of the 2015-16 financial years, the market size of the sector was
registered as USD 18.1 billion. The FMCG Sector in India involves a strict
competition between the organized and unorganized sector of consumer
durables.

India offers an abundance of raw materials, low-priced labor costs, and also has
a presence across the entire value chain. The market size of the Indian some
product categories such as jams, toothpaste, skin care products, hair care
products, etc. have experienced a low per capital consumption as per a report
presented in 2015.

As per the recent developments in FMCG it is assumed that the consumption of

the FMCG products will have a satisfactorily growth with the rising income level
of Indian populace in both the rural and urban areas. Around 200 million people
are expected to become the consumers of processed and packaged foods by the
year 2018.

The major activities of the food-processing sector are permitted 100% foreign
equity or 100% NRI and Overseas Corporate Bodies (OCB) investment to meet
the rising demand of the consumers.

Overview of FMCG Retailing in India

Fast Moving Consumer Goods (FMCG) can be defined as packed goods that are consumed
or sold at regular and small intervals. The prices of the FMCG are relatively less and profits

14
earned through such sales are more volume based. The organized FMCG Retailing in India
is a new concept and is fast catching up in urban and semi-urban India.

❖ The organized retail markets in India cater FMCG products :

➢ Toiletries
➢ Soaps and detergents
➢ Cleaning and disinfecting agents
➢ Cosmetics
➢ Non-durables
➢ Pharmaceuticals

Further, the packaged food products and drinks is also sold under the FMCG,
since these items are consumed or bought at regular intervals. Furthermore,
recently the electronic items like mobile phones, MP3 players, external hard
drives, etc., which has less life owing to its technological development, has also
been brought under the gamut of FMCG sector.

• Top 5 FMCG Companies in India

1. Hindustan Unilever Limited (HUL)

Market cap: Rs 521,882 Cr / PE: 71.20

Fig 1.1

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HUL is one of India’s oldest FMCG companies. It is a subsidiary of Unilever, a British-Dutch
company. The company was established in 1933 and has headquarters in Mumbai. HUL has served
over 2 billion customers for over 87 years.

HUL has over 35 brands across 20 categories such as soaps, detergent, skincare, cosmetics, tea,
and toothpaste. The brand includes famous names like Surf, Excel, Dove, Lux, Lifebuoy, Clinic
Plus, Wheel, Sunsilk, Knorr, Axe, etc.

2. ITC Limited

Market Cap: Rs 240,076 Cr/ PE: 15.84

Fig 1.2

ITC Ltd. has flourished in the Indian markets for over 110 years giving them a deep understanding of
the Indian Consumer. The ITC is known to guarantee a certain standard in production and packaging.
They have broad distribution channels in India. This has allowed them to penetrate into even the most
rural areas through several retail shops.

Their products include Bingo, Sunfeast, Aashirvaad, Fiama Di Wills, Vivel, Savlon soaps and hand
wash, Papercraft, and Classmate. ITC sells 81% of the tobacco products in Asia including brands like
Wills Navy Cut, Gold Flake Kings, Silk Cut, India Kings, Bristol, Gold Flake Super Star, Gold Flake
Premium Lights, Classic Menthol, etc.

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 3. Nestlé India

Market Cap: Rs 159,330 Cr / PE: 80.90

Fig 1.3

Nestle is a transnational food and beverage company headquartered in Switzerland. Globally the
company has been around for more than 150 years. In India, Nestle dates back to 1912 when it began
operating as Nestle Anglo-Swiss Condensed Milk Company. They cater to the nutritional and wellness
requirements of Indian consumers. In 2016, they were rated 33 in Forbes list of largest public
companies.

Nestle sells a plethora of products including beverages, bottled water, milkshakes, breakfast cereals,
instant foods, performance, and health care nutrition, etc. A few of the 2000 brands they currently own
are Nescafe, Maggi, Milky Bar, Kit Kat, Bar One, Milkmaid, Nestea, etc.

4. Britannia Industries

Market cap: Rs 93,866 Cr / PE: 63.18

Fig 1.4

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Britannia Industries is one of the oldest food-producing companies in the country. It was established
in 1892 in Kolkata with an initial investment of merely Rs. 295. Their products are available in more
than 5 million retail outlets. More than 50% of Indian households are proud users of their range of
food items. The FMCG is known as the first Zero Trans Fat Business in the country. They have an
extensive distribution network in India and 60 other countries.

5. Marico

Market cap: Rs 46911 Cr / PE: 41.40

Fig 1.5

Marico was established in 1990 in Mumbai. It began as a brand for coconut and refined edible oil and
later expanded into various kinds of consumer goods. It is currently operating in 25 countries in the
emerging markets of Asia and Africa. They maintain their innovation in manufacturing and packaging
to preserve the tagline “Make a difference”.

• DISTRIBUTION CHANNEL OF PDPL

A Distribution Channel is a set of interdependent organizations (intermediaries) involved in the

process of making a product or service available for use or consumption by the consumer or
business user. Channel decisions are among the most important decisions that management faces
and will directly affect every other marketing decision. In Pride Distribution PVT LTD who is the
distributor of P&G brand, there are total five types of distribution channel which are allocated by
P&G.

1. Large distribution channel

2. Medium distribution channel

3. Small distribution channel

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4. Wholesalers

5. Mini market

1. Large distribution channel

In large distribution channel is a channel in which large outlets, such as the shopping centers,
belonging to a few companies, which move large volumes of goods from number of large product.
In this channel that stores are included which are buying more than 10000 Rs products.

2. Medium distribution channel

Which are buying less than 4000 Rs outlet or product is come in medium distribution channel. This
channel is buying medium quantity of outlet.

3. Small distribution channel

Small distribution channel define as the small stores and kirana shop which are buying less than
1000 Rs goods from the sales person. In every visit this shops are buying average 1000Rs goods.
In this small channel there is also three types of categories like,

• Small traditional A and small traditional B (ST A-B)

• Small pharmacy A and small pharmacy B(SP A-B)

• Small beauty A and small beauty B(SB A-B)

In ST-A that stores are included which buying average 400 rs goods in every visit and in ST-B it
includes 300 rs goods in every visit. In small channel every 12 days visiting are made. There is no
credit system in small distribution channel.

4. Wholesalers:
Wholesalers are which shopkeepers which are buying is large quantity of units. Wholesalers are
buying in large quantity and they are selling to small stores and retailers.

5. Mini market:
Mini market is also like stores. Mini markets are covered weekly.

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 • Functions of Distribution Channel
• All Use Up Scarce Resources

• All May Often Be Performed Better Through Specialization

• All Can Often Be Shifted Among Channel Members

❖ A channel of distribution of FMCG is given below:

1. Manufacturer Customer:
This is also known as direct selling because no middlemen are involved. A producer
may sell directly through his own retail stores, for example, Bata. This is the
simplest and the shortest channel. It is fast and economical. Small producers and
producers of perishable commodities also sell directly to the local consumers. Big
firms adopt direct selling in order to cut distribution cost and because they have
sufficient facilities to sell directly to the consumers.

The producer or the entrepreneur himself performs all the marketing activities.
2. Manufacturer Retailer Customer:
This is one stage distribution channel having one middleman, i.e., retailer. In this
channel, the producer sells to big retailers like departmental stores and chain stores
who in turn sell to customer. This channel is very popular in the distribution of
consumer durables such as refrigerators, T V sets, washing machines, typewriters,
etc. This channel of distribution is very popular these days because of emergence of
departmental stores, super markets and other big retail stores. The retailers purchase
in large quantities from the producer and perform certain marketing activities in
order to sell the product to the ultimate consumers.

3. Manufacturer Wholesaler Retailer Customer:

This is the traditional channel of distribution. There are two middlemen in this channel of
distribution, namely, wholesaler and retailer. This channel is most suitable for the products
with widely scattered market. It is used in the distribution of consumer products like

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groceries, drugs, cosmetics, etc. It is quite suitable for small scale producers whose product
line is narrow and who require the expert services and promotional support of wholesalers.

❖ Selection Criteria of a Distribution Channel

While selecting a distribution channel, the entrepreneur should compare the costs, sales
volume and profits expected from alternative channels of distribution.

• YAVATMAL DISTRICT
The district is divided into 16 Tehsils and 16 Panchayat Samities. According to the 2011 Census,
there was 1208 Gram Panchayat for the purpose of Rural Development. Yavatmal district stretches
over an area of 13584 Sq. Km. In the terms of area; Yavatmal district constitutes 4.4% of the total
area of the Maharashtra State. Total population of the district according to 2001 census was 27.7
lakhs. Of the total population, 81.40% is residing in rural area and 18.60% is residing in urban
area. The density of the population according to the 2011 census was 200 persons/Sq. Km

• FMCG DISTRIBUTORS IN YAVATMAL DISTRICT

1. Pritesh Borele Hindustan Unilever Limited

2. Pride Distributors P&G

3. Deshmukh Bandhu ITC

4. Patil Nestle

5. Rai Parle

Table 1.1

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Objectives

1) To understand the P&G’s Distribution channel by Pride Distributor of Yavatmal District of

Maharashtra.

2) To find out the factors influencing P&G’s products purchase decision by consumers of
Yavatmal district Maharashtra.

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 CHAPTER 2: ORGANISATION PROFILE

Procter & Gamble

The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation
headquartered in Cincinnati, Ohio, founded in 1837 by William Procter and James Gamble. It
specializes in a wide range of personal health/consumer health, and personal care and hygiene
products; these products are organized into several segments including Beauty; Grooming; Health
Care; Fabric & Home Care; and Baby, Feminine, & Family Care. Before the sale of Pringles to
Kellogg's, its product portfolio also included foods, snacks, and beverages. P&G is incorporated
in Ohio.

In 2014, P&G recorded $83.1 billion in sales. On August 1, 2014, P&G announced it was
streamlining the company, dropping and selling off around 100 brands from its product portfolio
in order to focus on the remaining 65 brands, which produced 95% of the company's profits.

About Pride Distributors

Pride Distributors Pvt. Ltd., established in June 2010.They are registered distributor for Nagpur &
Indore Zone by Procter & Gamble. They ensure the presence of home products like shampoos,
washing powder, sanitary napkins, razors & blades etc. They cater all the products in the company
portfolio to retailers, wholesalers and modern trade stores.

Vision:

Our vision is to be the premier distributor partners in the country for the companies by achieving
growth in the market segments we serve. We will achieve this goal through an ongoing
commitment by providing quality service to our customers. A balance of leadership and team work
will serve as our foundation.

23
 Mission:

Our mission is to effectively serve all the specific and diverse needs of the market, while
conducting ourselves with honesty and integrity.

BOARD OF DIRECTORS
• Mr. Viren J. Thakkar
• Mr. Saurabh N. Thakkar

• Market Coverage
•
• Pride Distributors is mainly concentrated on Distribution business across two zones – Nagpur and
Indore.
Area under distribution for P&G: 12 Districts in Nagpur & 11 Districts in Indore.
Serviced Retail Counters: 25000 in Nagpur and 13000 in Indore.
Currently they are present in the following locations with Warehouse, IT, Logistics and Sales
Infrastructure.

24
• Nagpur Zone
•

Fig 2.1

25
 • Indore Zone
•

•
Fig 2.2
Brands

26
 ORGANOGRAM

Fig 2.3

27
  YAVATMAL BRANCH ORGANOGRAM

BE(Business executive)

STL BI (branch
(sales team leader) Incharge)

SO(system DLO(district
DSE(Distribution operator) logistic officer)
sales exiqutive)

VC(visibility DB(delivery boy)

captain)

WH
(warehouse
helper)

Fig 2.4

28
 • DEPARTMENTS

• Finance department.

• Finance department will be responsible for all the day to day transactional accounting for the
business. This will include the tracking of all transactions and the management of any government
reporting. In very small owner-managed businesses this role is often filled by a family member
with accounting experience. An outside accounting firm is usually used for annual financial
statements and returns.

• The finance department is also responsible for management of the organization’s cash flow and
ensuring there are enough funds available to meet the day to day payments.

• Where there are cash needs beyond the day to day working capital, the finance department is
responsible for advising and sourcing longer term financing.

• The finance department will work with managers to prepare the organization’s budgets and
forecasts, and to report back on the progress against these throughout the year. This information
can be used to plan staffing levels, asset purchases and expansions and cash needs, before they
become necessary.

• Finally, the finance department should be called upon to provide information to assist managers
in making key strategic decisions, such as which markets or projects to pursue or the payback
periods for large capital purchases.

• IT department

• A company's information technology department plans, operates and supports an organization’s

IT infrastructure, enabling business users to carry out their roles efficiently, productively and
securely. The department must meet multiple business and technical requirements, provide a
secure IT infrastructure and minimize costs.

29
• Network
• The IT team develops and operates a network to support effective communication and
collaboration. Increasingly, they are deploying the latest Internet Protocol networks with the
capability to carry all voice, data, video and Internet traffic on a single network.

• Data

• IT teams develop tools to collect, store, manage, secure and distribute data to employees who need
access to the latest information to make decisions about strategic, financial and operational issues.
They store company information from sources such as customer records, sales data, market
research, financial records, manufacturing and inventory data in a single data center. The team
also sets up links to collect data from retailers, distributors and the supply chain so that managers
can make sales, marketing and production decisions based on the latest information.

• Support

• To enable employees to make the most effective use of IT resources, the IT team provides various
forms of user support. After installing new software or network facilities, the team provides
training so that employees can quickly make productive use of the new resources. The team also
provides ongoing support to users through a helpdesk or self-service facilities on the company
intranet.

• HR department

• The overall HR process is developed and managed by this department. The HR process comprises
coordinating, administering and retention of the organization’s workforce.

• Recruitment

• They advertise job postings, source candidates, screen applicants, conduct preliminary interviews
and coordinate hiring efforts with managers responsible for making the final selection of
candidates.

30
 • Compliance

• Compliance with labor and employment laws is a critical HR function. Noncompliance can result
in workplace complaints based on unfair employment practices, unsafe working conditions and
general dissatisfaction with working conditions that can affect productivity and ultimately,
profitability. HR staff must be aware of federal and state employment laws such as Title VII of
the Civil Rights Act, the Fair Labor Standards Act, the National Labor Relations Act and many
other rules and regulations.

• Sales department

• A sales manager works towards the goals and objectives of the organization. He is the one who
sets the targets for the sales executives and other sales representatives. A sales manager must
ensure the targets are realistic and achievable.

• Purchasing - optimization of costs while also maintaining the standard of the work generated is
the responsibility of the purchasing department.

• Supply Chain - ensures that all products of the FMCG industry are manufactured and delivered in
the scheduled time.

• It is the sales manager’s duty to map potential customers and generate leads for the organization.
He should look forward to generating new opportunities for the organization.

• A sales manager is also responsible for brand promotion. He must make the product popular
amongst the consumers. A banner at a wrong place is of no use. Canopies must be placed at
strategic locations; hoardings should be installed at important places for the best results.

• Motivating team members is one of the most important duties of a sales manager. He needs to
make his team work as a single unit working towards a common objective.

• It is the sales manager’s duty to ensure his team is delivering desired results.

• A sales manager is responsible for not only selling but also maintaining and improving
relationships with the client. Client relationship management is also his KRA.

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• Operations department

• Reporting to the Managing Director you will have responsibility for driving the operational
aspects of the business to include sales, logistics / supply chain and warehousing.

• Key functions are:

• Develop a trade marketing plan tailored to each account and new business opportunity

• Negotiation of terms of sale, credit terms, returns, margins & volume Be responsible as a point of
contact for the retail customer regarding any product / merchandise related issues

• The logistics and manufacturing departments are organized and managed by the operations
department.

 SWOT analysis:

Strengths:
 PDPL have 17 branches all over Nagpur zone.
 Over 600+ employees are working globally.
 Pride Distributors PVT LTD have turnover of 235+Crs per anum.
 They are serving approximately 26,500 Outlets including MR (Modern Retail) stores like D-
Mart, and Star Bazaar etc. across south Gujarat.
 Deep roots in local culture and great understanding of consumer needs.
 Low operational costs and presence of established distribution network in both urban and rural
areas.

Weaknesses:
 Fake products sold under the name of their brands

32
 Its products have stiff competition from big domestic players and international brands
 Higher turnover ratio adversely affects relationship with the customers

Opportunities:
 Rising income levels, i.e. increase in purchasing power of consumers
 Large domestic market- a population of over one billion.

Threats:
 Intense and increasing competition amongst other FMCG companies.
 Competition from unbranded and local products
 Slowdown in rural demand

❖ Market position
The Procter & Gamble Company is the largest manufacturer and seller of household
products in the world. Olay, Pantene, Head & Shoulders, Gillette, and Pampers are
some of its major brands. Given that the consumer staples sector is highly competitive,
P&G faces local as well global competition from various players worldwide.

o Porter’s five forces

In examining Porter’s five competitive forces at work at P&G,
We find that three are horizontal in nature:
1. competitive intensity among rivals
2. new entrants to P&G’s product categories
3. Ease of product substitution

And two are vertical:

1. Customer bargaining power
2. Supplier bargaining power

 Horizontal forces
P&G offers a wide range of products, and so it’s hard for a new company to compete
with a similar product portfolio. Peers Unilever (UL) and Estee Lauder (EL) invest
large amounts of capital on comprehensive research for their beauty brands. Using
this research, the companies develop complete marketing strategies to promote
particular products as special and distinct. In this way, UL and EL are able to
compete with P&G in specific areas of the company’s giant portfolio.

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P&G’s focus has always been on quality and innovation. Many local and
international brands, including Colgate-Palmolive (CL), offer substitutes, such as
Colgate, for Oral-B.

 Vertical forces
Due to the massive scope of P&G’s business, it relies on relationships with third
parties to perform certain functions—suppliers, distributors, contractors, joint venture
partners, or external business partners, among others.

P&G maintains standard pricing with its suppliers. As a large customer, it enjoys
significant bargaining power with its suppliers. Still, it should be noted that even P&G
isn’t immune from broader market movements related to commodity prices.

34
 CHAPTER 3: REVIEW OF LITERATURE

Dr. Kundu Surinder Singh (SEPT 2013) Customers’ Perception towards the
Fast Moving Consumer Goods in Rural Market: An Analysis
He found that rural buyers perceived that TV commercials followed by print advertisements and
word of mouth plays a significant role for taking the decision to purchase these FMCGs. Further,
they consider their own experience, display at shops; incentive schemes for the purchase of these
FMCGs, whereas they do not fully agree that advice of beautician influences their decision towards
the purchase of these FMCGs. On the other hand, rural buyers perceived that social factors are no
so strong that those may influence their decision to purchase these FMCGs. Therefore, it may be
recommended that the producers or marketers should frame ethical advertising strategies keeping
in mind that rural people are fond of electronic and print media advertisements.

Muhammad Intisar Alam, Afreen Choudhury (Apr 2011) Factors

Affecting Retailers Attitude towards Manufacturers: A Study on Unilever

The study addresses broadly the performance related issues as to what extent is the impact of
various factors responsible in terms of retailers for doing business with manufacturers in FMCG
(Fast Moving Consumer Goods) sector at Dhaka in

Bangladesh. They found that with multiple competitors, Unilever is a leader in the FMCG sector
in Bangladesh. It has been maintaining its standard with the channel members especially with the
retailers in terms of serving them efficiently and effectively for a long time. The retailers’ overall
attitude has been examined towards Unilever in Dhaka. Even though this company is serving them
well, some recommendations have been made based on the research findings about what Unilever
Bangladesh Ltd should do to more satisfy the retailers.

35
Dr. Sharma R.C. (April 2019) Buying Behavior of Rural Consumers towards Personal Care
Products

The study has thrown light on the fact that the companies need to rethink their marketing strategies
and give demographics importance. There are various platforms available to a company today for
marketing a product to the rural consumer. The company needs to go niche on the bifurcation of
the audience to their marketing. The company has focus on each segment accordingly and multiple
marketing strategies need to be formulated to attract the rural consumer. Female consumers are
putting greater emphasis on their lifestyles, self-image, health and economic considerations while
purchasing personal care products. Hence, it is highly recommended that cosmetic dealers develop
a deeper understanding of the factors influencing the purchase decisions of females. The
marketer’s needs to favorably shape the marketing to ensure the fact that it’s attractive enough to
start a social publicity of the product. The biggest factor that came out in the study is social that
impacts the buying decision.

Ligo Koshy· (August 2014) Determinants of retail customer satisfaction: A study of organized
Retail Outlets IN ERNAKULUM,
KERALA

As the majority of the respondents belong to the younger generation, so care needs to be taken in
account while deciding the marketing strategy. Younger respondents demand branded product at
reasonable and fixed price and have a tendency to avoid bargaining. They are also attracted towards
entertainment means, so organized retail stores suggested to make sure that there is availability of
branded product at reasonable price. Retail outlets can further appeal to the female customers by
offering more products, especially for women. They can provide a shopping experience that
women are particularly attracted. In this way, retail chains can expand their customer base as the
retail outlets have a large base of potential customers. Location, variety of products and reasonable
price are the major motivating factors that influence the customer to visit retail outlets, so retail
chains should give proper emphasis on these factors. Organized retailers are suggested to offer
convenient location, sufficient parking space and such an atmosphere ambience so that customer

36
can have a pleasurable shopping experience. It is proved by different studies that – more customers
spends time in a store, the more likely he is to make purchases. So with the purpose to increase
revenue, organized retailers should pay attention towards physical aspects, variety of branded and
non-branded products at reasonable prices. Special promotional activities should be there on
weekdays so as to gather rush on weekdays and avoid the chaos and confusion on the weekends.
Proper parking facilities should be there and parking should be made free for the regular
customers/heavy purchasers. Such people may be issued a parking card, with free earmarked
parking

Aleksandra Anđelkovi, Nada Barac, Marija Radosavljević (2017)

ANALYSIS OF DISTRIBUTION CHANNELS’
SUCCESSFULNESS –THE CASE OF THE RETAIL CHAINS IN THE REPUBLIC OF SERBIA

One of the distribution channel’s characteristics is taking or handing different activities among the
partners within the channel. In that sense, retailers increasingly take over the role of wholesalers
or even producers, in terms of packaging or performing final phase of the production process. The
analyzed retail chains are registered under the business activity code that indicates their primary
activity, but this does not mean that they do not achieve income on other grounds (Radosavljević,
Borisavljević, 2014). Retail chains could be able to realize some activities instead producers or
wholesalers and achieve income on that basis. This could be great limitation in research of authors.
Considering that the results show that there is no statistically significant correlation between the
number of objects and profitability, no matter it is analyzed based on revenue of ROE. On the other
hand, the second factor that is usually mentioned in the research of the authors from the developed
countries, capital is identified as a factor whose influence on ROE is statistically significant.
Unfortunately, according to the data from the financial reports of the 10 largest retailers in the
Republic of Serbia, it could be concluded that average ROS and ROE from analyzed period were
below the average for retail sector. This indicates poor results and unenviable position of the retail
sector in the Republic of Serbia. In addition, these results point to the need for investing in

37
technological innovation in order to improve the distribution process, bearing in mind that the
success of these intermediates in distribution channels has a great influence on performance.

Dr. Singh A.K , Imran Mehraj Dar (2014)

A Study on the Problems faced by the FMCG Distribution Channels in Rural Area of

Bhopal & Hoshangabad Districts of M.P.

Channel distribution always faces the discrimination as distributors didn’t get credit from
companies but they had to give some credit period to wholesalers and retailers. There is a
prevalence of spurious goods with the same brand name and packing colors and many rural
consumers were becoming victims of such menace. Less educated people did not buy branded
products and became victims of duplicate products. During the survey it was found that the
majority of the families had fewer members in family and also majority of the rural consumers had
no investment at all. It was also seen that major brands of FMCG were not available in rural area.
Although the good behavior and courtesy of the retailers had great influence on rural customers
and if required branded product was not available at the time of buying, the rural consumers
postponed their buying

Ingavale Deepa (2011) TAPPING INDIAN RURAL MARKET - RURAL DISTRIBUTION

STRATEGY

Rural distribution has posted a challenge to marketers because the market is spread over more than
0.6 million villages. But the saturation of urban market & the growing potential of rural markets
have forced marketers to come up with innovative solutions. The marketers can reach the rural
consumers by effectively utilizing the rural retail system. The marketers may use a combination of
attractive margins, credit & discount scheme to motive large outlets in rural areas. Marketers need
to supplement their sales through retail channel through haats & meals. Traditional mobile traders
are a channel that the national brands can use to reach the interior villages. Marketers can
effectively access rural market by any method that combines the various function of marketing.
The function of creating awareness, educating the consumer & persuading them can be achieved
with the help of SHGs & Micro Finance Institutions. Marketers make consistent attempt to
innovate tools & strategies to overcome the challenges they face in rural markets. Marketers need
to design creative solutions to overcome challenges typical of the rural environment such as
physical distribution, channel management & promotion. Newer approaches include syndicated
distribution, relationship marketing through service centers and direct-to home selling. The
Information & Communication Technology based value chain & the organized retail format have
been found to be the best innovation for rural India. The combination of the ICT & organized retail
offers solutions to the problem of poor connectivity, economics of scale, transparency,
communication & a direct medium of communication to interact with customers.

38
39
 CHAPTER 4 : RESEARCH METHEDOLOGY

a. Problem Statement

Productivity is critical to the success of any business firm that wants to gain and maintain
market share. The organization is in need of an appropriate measure of customer satisfaction
that will lead to productivity from its customers. With the help of distribution channel the
marketer reach the intended final user of their product. The present study tried to analyze the
distribution of P&G products in Yavatmal district. It will consider the level of customer
satisfaction which determine the effectiveness of FMCG distributor channel in Yavatmal.

a. Research objective
• To understand the P&G distribution channel by Pride distributors of Yavatmal district of
Maharashtra.
• To find out factors influencing P&G products purchase decision by consumers of
Yavatmal district of Maharashtra

b. Research Design
“The research design is the method and process for the conducting particular study, broadly
speaking; it can be grouped in the three main categories – Exploratory, Descriptive and Causal.

1. Type of design
“The research design is the method and process for the conducting particular study, broadly
speaking; it can be grouped in the three main categories – Exploratory, Descriptive and
Causal.

Descriptive

Descriptive study is used when researcher interested in knowing the features of

certain group like age, sex, educational level, operation etc.”

This research conducted is a descriptive research. This is descriptive in nature because the
study is focused on fact finding investigation in a 68 structured form and is based on
primary data. Primary data has been used in the form of a questionnaire in order to collect
data.

2. Sampling:
Sample size of this survey was 110 respondents.

3. Data collection:

• Sources of Data: This research study is based on primary data structured questionnaire
has been used.

40
• Sampling method
The non-probability convenience sampling method was use to collect the responses.
• Survey Tools
Structured questionnaire was used as tool of data collection.

4. Limitation of Study
• The possibility of respondent’s responses being biased cannot be ruled out.
• Due to small sample size the study may not be generalized

41
 CHAPTER 5: Data analysis

SECONDARY DATA ANALYSIS.

Demographic values
Variable Frequency
Gender Male 78 (70.9%)
Female 31 (28.2%)
Prefer not to say 1 (0.9%)
Age group 18-28 86 (78.2%)
29-38 14 (12.7%)
39-48 3 (2.7%)
49-58 7 (6.4%)

Above 58 0%

Occupation Student 65 (59.1%)

Self Employed / Business 13 (11.8%)

Dependent 1 (0.9%)

Teacher 1 (0.9%)

Working professional 29 (26.4%)

Income 0-20000 65 (59.1%)
20000-40000 16 (14.5%)

40000-60000 10 (9.1%)

60000-80000 10 (9.1%)

Above 80000 9 (8.0%)

Table 5.1

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Which of the following P&G products do you purchase?

Fig 5.1

According to the survey it is found that 31.8 of respondent’s uses Olay face cream & 55.5 % of
respondents uses Oral B Tooth paste and tooth Brush.

59.1% of respondent uses Vicks, 15.5% of respondent’s user’s Old Spice, 24.5% of respondents
uses Ambi Pur.

55.5% of respondents uses head shoulder, 34.5% of respondent uses Pantene as a shampoo.

44.5% of respondent uses Tide for washing and 35.5% of respondents uses Areal.

Which factor influences you to buy FMCG products of P&G brand?

Fig 5.2

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 Fig 5.3

According to the survey 33 respondent agreed that lower price than competitor influences then to
buy FMCG products of P&G brand. Were as 32 respondents strongly agreed, 31 respondent are
neutral, 11 were disagreed and 3 respondents are strongly disagreed that lower price than
competitor influences than to buy FMCG products.

According to the survey 54 respondent are strongly agreed that advertising influences them to buy
FMCG products of P&G brand. Were as 23 respondents are neutral about it. 20 respondents
strongly agreed that advertising influences them. 9 respondents are disagreed and 3 respondents
strongly disagreed.

According to survey 54 respondents agreed that quality of product influences then to buy FMCG
products of P&G brand. Were as 35 respondent are strongly agreed about it. 16 respondents are
neutral about it. 4 respondents disagreed that quality influences them to buy FMCG product and 1
respondent is strongly disagreed.

According to survey 44 respondents agreed that promotional offers influence them to buy FMCG
products of P&G brand were as 18 respondents are strongly agreed. 36 respondents are neutral
about it.11 respondents are disagreed that promotional offers influences them and 1 respondent is
strongly disagreed.

According to survey 50% respondents are agreed that easy availability influences them to buy
FMCG products of P&G brand were as 35 respondent are strongly agreed. 16 respondents are
neutral about influencing them by easy availability.
5 respondents are disagreed that easy availability influences then to buy FMCG products. And 4
respondents are strongly disagreed

According to survey 51 respondents are agreed that brand image influence them to buy FMCG
product of P&G brand. Were as 33 respondents are strongly agreed
21 respondent are neutral, 4 respondents disagreed that brand image influence them to buy FMCG
product of P&G brand and 1 is strongly disagreed

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 • Required FMCG product of P&G brand is available at retail store .

strongly agree agree neutral disagree strongly disagree

Fig 5.4

According to survey 50% of respondent strongly agreed that required FMCG product of P&G
brand is available were as 30% of respondents are agreed
10% of respondents are neutral about availability 15% of respondents disagreed that required product
is available and 5% of respondent are strongly disagreed

45
 • Required quantity of FMCG product of P&G brand is available at retail store?

strongly agree agree neutral disagree strongly disgree

Fig 5.5

According to the survey 60% respondent strongly agreed that required quantity of FMCG products of
P&G brand is available were as 18% of respondents are agreed
13% of respondent are neutral about availability 7% of respondent that required quantity of product is
available and 2 of respondent are strongly disagreed

46
 • What is your overall satisfaction level towards FMCG products of P&G brand?

highly satisfied satisfied neutral highly dissatisfied

Fig 5.6

According to the survey 70% of respondents are highly satisfied with FMCG product of P&G brand
20% respondents are satisfied, 7% are respondents are neutral and 3% of respondents are dissatisfied
with P&G brand

47
• How likely do you wish to continue purchasing FMCG product of P&G brand?

likely somewhat likely somewhat unlikely no opinion

Fig 5.7

According to survey it is found that 62% of respondent are very likely, 26% of respondent
are somewhat likely, 5% respondents are somewhat unlikely and 6% of respondents are
no opinion wish to continue purchasing product of P&G brand.

48
 CHAPTER 6: OBSERVATIONS AND FINDINGS:-

From the survey it is found that most of consumers are of students and working professional of 18
to 38 age group and most having income 0 to 40000

From the data analysis it can be found that users of Head&Shoulder, Oral B and Vicks are higher
in use then other products of P&G brand and old spice has the least user.

It can be concluded from the survey that more consumers are influence by advertising, Quality,
easy availability and brand image then lower price than competitors and promotional offers.

It is seen that required product is mostly available with proper quantity at retail store.

From the survey it is found that most of the consumers are satisfied towards FMCG product of
P&G brand and least of the users are dissatisfied.

Most of the consumers are wishing to continue purchasing FMCG products of P&G brand.

49
 Conclusion
FMCG industry mainly depends upon their margin and flexible policy. The services provided by the
PDPL main drivers for the success. This suggests that management may wish to seek attributes that
are responsible for returning of the Customers.

To examine customer satisfaction PDPL most of its customers is satisfied with the attributes provided
by SDPL like Required products are always available at retail store with required quantity. Required
product is available with PDP Ltd provides require quantity of the product.

From the study it can be concluded that consumers are influenced by many attributes combinely at a
time and the distribution channel of Pride Distributor Pvt. Ltd provides require quantity of the product,
and required products are always available with Pride Distributor Pvt. Ltd this two factor is highly
agreed by the consumers.

Finally it is concluded that customers are having a good experience with FMCG products of P&G
brand and distribution channel of Pride Distributor Pvt. Ltd. deserve their loyalty.

50
References

Dr. Surinder Singh Kundu (SEPT 2013) Customers ‘Perception towards the
Fast Moving Consumer Goods in Rural Market’: An Analysis. International Journal of Techno-
Management Research, Vol. 01, Issue 02, September 2013 ISSN: 2321-3744

Muhammad Intisar Alam, Afreen Choudhury (Apr 2011) ‘Factors

Affecting Retailers Attitude towards Manufacturers: A Study on Unilever’. Journal of Economics and
Behavioral Studies Vol. 2, No. 4, pp. 138-150, Apr 2011

Dr. R.C. Sharma (April 2019) ‘Buying Behavior of Rural Consumers towards Personal Care Products’
International Journal of 360 Management Review, Vol. 07, Issue 01, April 2019, ISSN: 2320-7132

Ligo Koshy· (August 2014) ‘Determinants of retail customer satisfaction: A study of organized Retail
Outlets IN ERNAKULUM’,
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Aleksandra Anđelkovi, Nada Barac, Marija Radosavljević (2017)

‘ANALYSIS OF DISTRIBUTION CHANNELS’
SUCCESSFULNESS –THE CASE OF THE RETAIL CHAINS IN THE REPUBLIC OF SERBIA’
ECONOMIC THEMES (2017) 55(4): 501-519 http://www.economic-themes.com

Dr. A.K Singh, Imran Mehraj Dar (2014) ‘A Study on the Problems faced by the FMCG Distribution
Channels in Rural Area of Bhopal & Hoshangabad Districts of M.P’. International Journal of business
quantitative economics and applied management research SSN: 2349-5677 Volume 1, Issue 2, July 2014

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