Product Issues in Channel Management

COMPANY –MARICO
WEBSITE LINK- https://marico.com/

Session-17

Submitted by: Team 3

Surbhi Sabharwal (PGFA1957)
Utkarsh Padiyar(PGFA1959)
Abhishek Deva Sarma(PGFB1902)
Aditya Singh(PGFB1905)
Akansha Topani(PGFB1906)
Margins-
• Traditional retailer (Kundan Shop, Bholanath)- 10%
• Modern Retailer (Abhinandan, Daily Bazar)- 10%
• Wholesaler (Amit, Ram)- 2-3% (depending on the current
scheme)
Inventory-
• Traditional retailer- 1 month to sell the products
refills after the half of the amount is sold.
• Modern Retailer- once a month refills after ¾ is
covered.
• Wholesaler- twice a month.
New product awareness-
• Traditional retailer- Works according to the
demand.
• Modern Retailer- Stocks the new product next to
the old ones to catch the attention.
• Wholesaler- Sales officer comes to introduce and
then demonstrate.
Product life cycle-
• Traditional Retailer- Stocks only 2-3 of them in the
1st phase (Introductory and then stays constant).
• Modern Retailer- Stocks a dozen of them in the 1st
phase and then increases over the course of time.
• Wholesaler- Stocks in volume (14-15kg) and then
increases with increase in pressure form the
officer or by the retailers.
Problems-
• Traditional Retailer- Fluctuating demand and returning a
product takes a bit longer.
– Near to expiry products are given to the most busy
retailer and are asked to sell it rigorously.
• Modern Retailer- Shelf arrangement due to competition
and request. Difficult to maintain the relation. Returning is
easy but they hardly return parachute items.
• Wholesaler- Maintaining the relation two way is difficult
while returning the allocated item from different retailer is
sometimes hectic.
Special Problems related to the new product-
• Traditional Retailer- Have to tell people to try when
the demand decreases and the new product fails to
capture the attention of the customers.
– Pushing a new product to get the sale, sometimes
diverts the attention and creates tension.
• Modern Retailer- Sometimes deteriorates the shelf life
as they place the product where the customer can see
which could have been used for other imp and valuable
products which could have increased their sales.
• Wholesaler- Less retailers to trust (As if they can
sales the product or not). Have to push the product or
to bundle them with the older product.
 Distributor – Retailer Issues, Marico
• Preferring the online channel partners: Retailers in Jaipur prefer to by products
ordering it online because they save almost 50% of their margin.
– On time delivery(suppose they made a order in
morning they will get it by evening)
– 1% margin loss to online channel members in case
of exchange, return, damages.

• Shelf Space required for new product – Not Proper redressal / Monterey benefit
not provided. The company does not pay for the shelf space they have asked for in
case of traditional retailers because there is no written agreement. they have
asked to keep its products at the retailers end.
Distributor – Retailer Issues, Marico Cont.

The manufacturer (distributor) are trying to keep the product on shelf to prolog
its introduction and growth phases but the retailer is noticing that the product
is not moving and creates a bad impression that inhibits, they don’t consider
taking the product back after giving the product.

Damage & Expiry: In such cases the company deducts 30% amount and gives
the rest of the amount to retailer. The retailer needs to pay from his pocket.

Product at Mature stage – Coconut Oil Parachute: Inc. in margin but the
product at times does not move and moves in winters (shock) where they face
shortage issues.
 Information Sharing and Training Issue

Noida Uttarakhand Guwahati Varanasi Jaipur

Distributors are The distributors The information The retailers are not The retailers are not
provided with focus on providing differs on the basis provided with any provided with any
product description complete product of the type of the information and information and
from the company. information and store. For example, training. training.
However, the training if required kirana stores are
distributors do not on the basis of the not given any
provide any such size and sales information as such
description to the volume from a given while medical stores
retailers and do not store. are provided with
visit the retailers. the same.
 Contact Information
• Retailer -Sunil Enterprises Varanasi - Sunil 9415451123
• Zap Supermarket - Sonu – 8081684132
• Wholesaler - Krishna Agency – 09307914172
• Distributor- Mr. Promod Verma 91 97608 15125
• Agarwal Retailer- 9717144069
• Kondli Bazaar- 9910241700