Description
Distribution network operators (DNOs) are companies licensed to distribute electricity in Great Britain by the Office of Gas and Electricity Markets.
Research Report on Distribution Net Work of Nimble Pharmaceuticals (Pvt) Ltd
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr.GRANDHE RAJESH, a student of Master of Business Administration of Dr M.G.R. Educational and Research Institute, has successfully completed the project – “A PROJECT REPORT ON DISTRIBUTION NETWORKS OF NIMBLE PHARMACEUTICALS”, HYDERABAD from January 2005 to April 2005.
During this tenure with us, his character and conduct are found good.
MANAGING DIRECTOR
INTRODUCTION
In ancient period there were no medicines for any disease. They used to take Ayurvedic medicines only. There are some people known well about Ayurvedic medicines only of cause these medicines can’t care completely. In those days human beings are not having proper medical facilities. They do not even know what the disease is only few people identify and give medicines for chine. Similarly for animals also. If the disease into the human being slowly increases to dangerous stage and after words animal dies. No one was to take precautions. Later on for some years a few people took active interest and made resonate and identify medicines for human beings. That is in 1901. The foundation of the Indian Pharmaceutical industry was laid as a small factory known as Bengal Chemical and pharmaceuticals words established in Calcutta. The progress made under the British rule in significant. The country depends largely on U.K. France and Germany for its requirement of drugs and medicines. Later on pharmaceutical industries in the country developed on large scale invades to reduce the imports and to increase the exports of drugs and chemicals which one necessary for the medicines. Taking this as a basis, Nimble Pharmaceutical products entered into the market. For producing human pharmaceutical. Nimble pharmaceutical producing different variety of products not only to increase the sales and to gain profits but also for the people welfare. Thus is this way medicines are introduced by the chemist for different diseases, which make man to suffer a lot. Taking this Nimble Pharmaceuticals entered into field and starts its business and ranks good place in market. It is having a good distribution channel to all over the country in order to meet the customers and making them free from the diseases that they are suffering from. In this the company holds one of the good position among pharmaceutical industries in country.
NEED OF STUDY
Today we are in a position to prevent major life-threatening illness with the help of well-advanced medical services. At present the Pharmaceutical industry of India is one of the largest and most advanced among the developing countries besides manufacturing of product, developing product to the target group is a vital part in pharmaceutical company. Hence the study on distribution network is helpful in knowing how the consumers are able to receive the end products.
SCOPE OF THE STUDY
The scope of study is to restricted to retailers only under this study a questionnaire survey was conducted in order to evaluate views and opinions of the re-tailers towards Nimble Pharmaceutical private Ltd. The retailers are surveyed Survey was done from the retailers.
OBJECTIVES OF THE STUDY
The main objectives behind the present project work to study the distribution network towards the company products of Nimble Pharmaceutical (Pvt) Ltd., Other objectives include: 1. To study the awareness of the retailers towards the company’s products. 2. To study the potential market for the products in comparison with other company Products. 3. To evaluate the attitude of the retailers by analyzing their opinions about price, quality and packing of products. 4. To find out and analyze problems faced by the retailers.
LIMITATIONS OF THE STUDY
The following are the limitations of the study. ? The survey is confined to a limited area about the marketing of drugs and chemicals is very vast. ? The scope for the gathering information was very less as I am vocational trainee. ? Time also stood as a major limitation.
METHODOLOGY
The concept of methodology relates to the Methods adopted for the research work or project work it also includes process of collection of data different sources Methodology is the basis for the systematic performances unless the work is pre planned or organized property, the result cannot be obtained satisfactorily. Methodology is a science of systems and methods of conduction the research work. It includes proper thinking of devices prior to commencement of work performance.
Sources of collection of Data: 1. Primary source
? Personal interviews and discussions with executives. ? Observations ? Surveys
2. Secondary sources
? Official files and records
Primary sources:
? Personal interviews and discussions with executives This method of unstructured interview was adopted to collect data from the officials of the company through personal interviews and discussions on various matters such as their products, pricing strategies distribution channels, promotional activities., ? Observations: Through Observations in the organizations; I came to know about what type of services and products that different department of the organization. ? Surveys; Through questionnaire survey regarding the Nimble Pharmaceutical products, I came to know about the retailers views, options and reactions and time the customer satisfaction towards their services.
Secondary sources:
? Official records and files: The data is collected from the records and files of the organization such as purchase order sales order previous projects reports etc.,
INDUSTRY PROFILE
The foundation of the Indian Pharmaceutical industry was laid in the beginning of the current century when, in ‘1901, a small factory known as the Bengal chemicals and pharmaceutical works as established in Calcutta. The two would was gave fillip to the development of the industry. The progress made under the British rule was insignificant the country depend largely on the U.K, France and Germany for its requirement of day and medicines. The development of Indian drugs and pharmaceutical industry was not commensurate with the size of the country and growing needs of her population, when Indian embarked on her planned economic expansion about 45 years ago. Since when the progress of the industry has been substation and many – sided with the result that it has become of the countries leading industries. India is now producing a large Quality of varied pharmaceutical products. In 1948 the sale of pharmaceutical products amounted to just Rs.100 millions by 1954 the scale of pharmaceutical products amounted Rs.540 millions in 1958. The figures stood as between Rs.850 millions and 90 millions in 1961 and in 1968 as much as Rs.1750 millions worth of pharmaceutical were produced. The total turn over of formulations and basic drugs has increased from Rs.15000 millions in 1980-1981 and it is about 1,00,000 million 1994-1995 and it has raise to 1,85,000 in 1998-1999. DRUG PRICING: The are about 500 bulk drugs which are consumed in the country, out of which about 350 are produced in India are being imported from the other countries. The prices of bulk drugs and formulations are regulated as per the provisos of the DPCO (Drug Price Control Order), 1955. At present 75 bulk drugs and their formulations are under DPCO. 1955 to make it more selective and effective.
To increase indigenous research and development the field of drugs. One of the schemes of the Government is to exempt bulk drugs and formulations based there upon from price control in favor particular manufacturing it from the basic stage. Some bulk drugs formulations have been grunted exempted from price control of a period of 5 years from the date of commencement of their commercial production on the grounds of the indigenous development. PRODUCTION OF PHARMACEUTICAL: Production of drugs and pharmaceuticals increased at a faster rate in recent years than in 1984-85 despite various difficulties faced by the industry particular by way sustained increase of raw materials, packing etc., and inadequate availability of power and water. The country has reached stage of self-sufficiency in the essential drugs. It is estimated that during 1994-95 the production bulk drugs was of the order of Rs.15180 millions and formulations of Rs.79350 millions. RESEARCH AND DEVELOPMENT: The pharmaceutical industry is one of the highly intensive industry on account of ? Rapid obsdencence of products and need to replace them continuously ? Inter disciplinary charter of the research need for the new drugs invention and ? Continuous social pressure to reduce the cost of the drugs. The great advances in the development countries have been due to large inputs that industry has provided for its research and development work. In India research and development in the area of drugs and pharmaceuticals in carried out in about 143 in house research and development units in industry recognized in by the department of scientific and industrial research, 6 laboratories of the Council for
Scientific and Industrial Research (CISIR), several laboratories of Indian Council of Medical Research (ICMR) and nearly 50 universities. The expenditure incurred by the in-house Research and development units over years had been the follow; 1991-92 Rs.800 Millions 1992-93 Rs.950 Millions 1993-94 Rs.1025 Millions 1994-95 Rs.1250 Millions 1995-96 Rs.1400 Millions 1996-97 Rs.1750 Millions 1997-98 Rs.2000 Millions 1998-99 Rs.2350 Millions 1999-00 Rs.2750 Millions These in-house Research and development units are well equipped with necessary laboratory and instrumental facilities, pilot plant facility and are manned by qualified, and competent research and development personnel; they are engaged in the process development personnel, product development. Improvement in the process / product development, cost reduction and overall quality improvement leading manufacturing practices (GMP). EXPORT:
30 years ago an export promotion council for chemical and pharmaceutical and other allied products was setup to promote product. Delegations sponsored by the council have joined many countries to find market to Indian pharmaceutics. As a result bulk drugs worth about 100 million. Have been exported to foreign land in 1993-94. Drugs of vegetable origin account for an appreciable share in the exports of
pharmaceuticals from the country.
An export active in the field of finished
pharmaceutical is a comparatively recent origin. The industry which begin as an importer of finished preparation and which before independence, wan mainly engaged in processing imported bulk material into formulation switched over rapid into basic manufacturing considerable has been made in this direction with the result that the industry is today net foreign exchange earner. Bulk drugs are possessed to become the new star on the export. During the four years between 1988-89 to 1991-92 export have secured from 24000 Millions to Rs.7226 Millions. A decade ago, we were finding out feel in the international bulk drug market. Today we are walking tall. Certainly there have been sweeping changes in the bulk drugs export. India is new perhaps the largest manufacturing, in the world in many drugs. Indeed India bulk drugs one eagerly sought often in Hamburg, London and New York. Principal centers of the globe pharmaceutical trade. competing country products. Since they are marginally cheaper then the other
COMPANY PROFILE Name of the Company Address of the Firm : : Nimble Pharmaceuticals 1-1-385/23, Gandhi Nagar, HYDERABAD. Line of Activity : Pharmaceutical Formulations 1. Tablets both Betalactam and Non-betalactam drugs 2. Capsules both Betalactam and Non-betalactam drugs 3. Liquid orals both Betalactam and Non-betalactam drugs 4. Syringes and Antibiotics.
Constitutions of the Company Size of the Industry Year of Establishment Manufacturing commenced from Outline of the Project
: : : : :
Private Limited Medium Scale March, 1997 June, 1997 Land & Buildings - 2 crores Machinery & Equipment - 1crore
Land and Building
:
This unit is spaciously built in an Open area of 2 acres land
MANAGING DIRECTOR GENERAL MANAGER SALES MANAGER M.R. M.R. M.R. M.R. M.R. M.R. M.R. M.R. M.R. M.R. M.R. M.R.
THEORETICAL FRAMEWORK OF THE CHANNELS OF DISTRIBUTION
The Word ‘Channel’ has its origin from the French Word for ‘canal’ Thus channel is a route through which goods passes from one to another. In other words the route through which goods move from place of production to the place of consumption is called channel of distribution are the means employed by manufacturer and seller to get the product to reach the market and thereby into the hands of consumers. In this way channels of distribution refers to various agencies through which the goods flow from the producer to the ultimate consumer.
DEFINITION:
A channel of distribution for a product is the route taken by the title to the goods as they move from the producer to the ultimate consumers or the end users. WILLIAM.J.STANTON Channels of distribution is the structure of Intra company, Organization units and extra company agents and dealers. Wholesalers and retail, through which a commodity, product services is market. AMERICAN MARKETING ASSOCIATION Distribution channel as “ the combination and sequence of the agencies through which one or more of marketing flows move”.
VAILE, GEATHER AND COX From above study we conclude that channels of distribution is a route or pathway composed of intermediaries also called middlemen who perform such function as needed to ensure smooth flow of goods and services from the manufacturing ends to the consuming ends in order to achieve marketing objectives of company. A distribution system is a key external resource. Normally it takes years to build and it is not easily changed. It ranks in importance with key external resources such as manufacturing research engineering and field sales personnel and facilities. It represent a significant corporate to a large number of independent companies whose business is distribution and particular market they secure. It represents, as well as commitment to a set of policies and practices that constitute basic fabric on which is woven an extensive set of long term relationships.
FEATURES: From the above definition the main features or elements of channel of distribution may summarized as under.
ROUTE OR PATHWAY: Channel of distribution is route or pathway through which goods and services pass from the manufacture to consumers. The flow of good and services is smooth and sequential and usually unidirectional.
COMPOSITION: It is composed of intermediaries such as wholesalers, retailers, agents, etc., is also called middlemen who participate in the flow voluntarily. FUNCTIONS: The Intermediaries perform such functions, which facilitate transfer of ownership, title and possession of goods and services from manufacturer to consumers. ROLE AND IMPORTANCE OF DISTRIBUTION: Channel of distribution play a very important role in the flow of goods and services from the producers to the ultimate consumers. They are the backbone of the marketing. They add place and time utility. The importance of the channels of distribution of goods may be summarized as under. Channel of distribution help the consumer to buy. The goods at the time and place they need. They create time and place utilities to the buyer. They help the producer in his production function by relieving from marketing problems. Thus the producer can pay his full attention to organize the production function information to the producer regarding the taste and needs of consumers, competition in the market. The channel of distribution helping in stabilizing prices of the product by stocks the goods and balancing demand and supply. Channels of distribution routine the sale of the product. Channel of distribution finance the producer as well as the consumer. (1) TYPES OF CHANNEL POLICIES: At this point in designing a channel, a firm decides what role is to be assigned to distribution within the marketing mix, weather direct or indirect distribution is better; and which type of middlemen will be used. Next the company will decide on the intensity of
distribution – that is, how many middlemen will be used at the wholesale and retail levels in a particular territory. (a) INTENSIVE DISTRIBUTION: Under intensive distribution, a producer sells his product through every available outlet in the market where a consumer might reasonably look for it. Ultimate consumers demand immediate satisfaction from convenience goods and will not defer in purchases to find a particular brand. Thus manufacturers of this category of product often use intensive distribution
(b) SELECTIVE DISTRIBUTION:
In selective distribution, a producer sells his product through multiple, but not all, wholesalers and retailers in market where a consumer might reasonably look for it. Selective distribution is appropriate for consumer shopping goods, such as various types of clothing and appliances, and for business accessory equipment, such as office equipment and handhold tools.
(c) EXCLUSIVE DISTRIBUTION:
Under exclusive distribution. The manufacturer agrees to sell his product only on a single wholesaling middleman or retailer in a given market. At the wholesale, such an arrangement is normally termed an exclusive distribution; at the retail level, an exclusive dealership. A manufacturer may prohibit a middleman who holds an exclusive distributorship or dealership from handling directly a competing product line.
(2) IDENTITY MAJOR ALTERNATIVES: When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of typed of intermediaries, number of intermediaries, and the responsibilities of each channel member.
(a) TYPES OF MIEELEMEN: A firm should identify the types of channel members available to carry out its channel work. For, example, suppose a manufacturer of test equipment has developed an audio device that detects poor mechanical connections in any machine with moving parts. Company executives think that this product would have a market in all industries where electric, combustion, or steam engines are made or used. This market includes industries such as aviation. Automobile, railroad, food canning, construction, and oil. The company’s current sales force is small, and the problem is how best to reach these different industries. The following channel alternatives might merge from management discussion.
(b) COMPANY SALES FORCE: Expand the company’s direct sales force Assign sales people to territories and make them contact all prospects the area or develop separate company sales force for different industries. (c)MANUFACTURER’S AGENCY: Hire agents or independent firms whose sales forces handle related products from many companies-in different regions or industries to sell the new test equipment.
(d) INDUSTRIAL DISTRIBUTORS: Find distributors in the different regions or industries who will buy and carry the new line. Give them exclusive distribution. Good margins, product training and promotional support. (3) CHANNEL MANAGEMENT DECISIONS: Once the company has reviewed its channel alternatives and decided on the best channel designing, it must implement and manage the chosen strategy. Management can call for selecting and motivating individual channel members and evaluating their performance over time. (1) SELECTING CHANNEL MEMBERS: Producers vary in their ability to attract qualified marketing intermediaries. Some producers have no trouble attracting new dealers for its Lexus line. In fact, it had to turn down many would-be resellers. In some cases, the promise of exclusive distribution for a desirable product will draw plenty of applicants. (2) MOTIVATING CHANNEL MEMBERS: Once selected, channel members must be continuously motivated to do their best. The company must sell not only through the intermediaries, but also to them. The most producers see the problem as finding ways to gain intermediary cooperation. They use the carrot and stick approach. At times they offer positive motivators such as higher margins, special deals. Premium, cooperative advertising allowances, and sales contests. At other times they use negative motivators, such as threatening to reduce margins to slow down delivery or to put and end to the relationship altogether. A producer using this approach usually is said to be having not done a good job of studying the needs, problems, strengths, and weakness of his distributors.
(3) EVALUATING CHANNEL MEMBERS: The producer must regularly check channel member’s performance against standards such as sales quotas, average inventory levels, customer delivery time, treatment of damaged and lost goods, cooperation in company promotion and training programs, and services to the customer. The company should recognize and reward intermediaries who are performing well. Those who are performing poorly should be helped or, as a last resort, replaced. (4) RETAILING: Retailing includes all the activities involved in selling goods or service directly to final consumers for their personal, non-business use. Many institutions – Manufacturers, Wholesalers, and Retailers – do retailing. But most retailing is done by retailers business whose sales come primarily from retailing and although most retailing is done in retail stores, as a recent trend. We hear non-store retailing – selling by mail, telephone, door-to-door contact vending machines, and numerous electronic means. As store retailing accounts for most of the retail business, it is discussed it first. Then non-store retailing is discussed. (5) SPECIALTY STORES: A specialty store carries a narrow product line with a deep assortment within that line. Examples include store selling sporting goods, furniture, books, electronics, flowers, or toys. Specialty stores can be classified further by the narrowness of their product lines. For example, a clothing store is a single – line store, a men’s clothing store is a limited – line store, and men’s custom shirt store is a super – specialty store. Today specialty stores are flourishing for several reasons. The increasing use of market segmentation, market targeting, and product specialization has resulted in a greater need for stores that focus on specific product and segments.
(6) DEPARTMENT STORE: In a retail organization that carries a wide variety of product lines – typically clothing, home furnishings and household goods, each line is operated as a separate department managed by specialist buyers or merchandisers. In recent years, many large department – store chains have been joining rather than fighting the competition by diversifying into discount and specialty stores. DaytonHudson for example, operated Target, Melvyn’s, ‘B.Dalton and many other chains in addition to its Dayton’s Hudson’s. and other department stores. These discount and specialty operations how account for more than 880% of the chain’s total corporate sales. (7) SUPERMARKET: Supermarkets are large, low margin, high-volume; self-service stores than carry a wide variety of food, laundry, and household product. Most U.S. supermarket stores are owned by supermarket chains such as Safeway, Kroger, A&P, Winn-Dixie, Punblix, Food Lion, Vons and Jewel, Chains account for almost 70% of all supermarket sales. The supermarkets introduced the concept of self-service. Customer turnstiles, and checkout counters. Supermarket growth took off in the 1930’s and grew rapidly for several decades. However, most supermarkets today are facing slow sales growth because of slower population growth and an increase in competition from convenience stores, discount food stores, and superstores. They also have been hit hard by the rapid growth of out-of-home eating. Thus, supermarkets are looking for new ways to build their sales. Supermarkets also are improving their facilities and services to attract more customers. Typically improvements are better locations, improved décor, longer store hours, check cashing, delivery, and even child-care centers. Although consumers have always expected supermarkets to offer good prices. Convenient locations, and speedy checkout, today’s more sophisticated food buyer wants even more. Many supermarkets, any therefore, are “moving upscale” with the market, providing “from scratch” bakeries, gourmet discounters and fresh seafood department. Others are cutting costs establishing
more efficient operations, and lower prices in order to compete more effectively with food discounters. Finally, to attract more customers, many large supermarket chains are starting to customize their stores for individual neighborhoods. They are tailoring store size, product assortments, prices and promotions to the economic and needs of local markets. (8) CONVENIENCE STORES: Convenience stores are small that carry a limited line of high-turnover convenience goods. Examples include 7-eleven, Circle K, and Stop-N-Go stores. These stores locate near residential areas and remain open for long hours, seven days a week. Convenience stores must charge high prices to make up for higher operating costs and lower sales volume, but they satisfy an important customers need. willing to pay for the convenience. During the 1980’s however, the convenience store industry suffered from overcapacity as its primary market of young, blue-collar men shrunk. As a result, many convenience store operators redesigned and their stores with female customers in mind. (9) SUPERSTORE, COMBINATION STORE AND HYPERMARKET: Superstores, combination stores, and hypermarkets are all larger than the conventional supermarket. Superstores are almost twice the size of regular supermarkets and carry a large assortment of routinely purchased food and nonfood items. They offer such services as dry cleaning, post offices, photo finishing, check cashing, bill paying, launch counters, car care, and per care. Because of their wider assortment, superstore prices are 5 to 6 percent higher than are those of conventional supermarkets. Many leading chains are moving towards superstores. They include Safe way’s Pak ‘N Pay and Path mark Super Centers’. Combination stores are combined food and drug stores. They average about one and a half football field in size i.e., about twice the size of superstores examples are Consumers use convenience store for “fill-in” purchase at off hours or when time is short, and they are
A&P’s family Mart, Wal Mart’s Super centers, and Kmart’s Super centers. Combinations stores take less than 5% of the business done by food stores, but account for 21% of new grocery store openings. Hyper markets are even bigger than combination stores, perhaps as large as six football fields. They combine supermarket, discount, and warehouse retailing. A typical hypermarket may have 50 checks out counters. They carry more than just routinely purchased goods also selling furniture, appliances, clothing, and many other things, the hyper market operates like a warehouse. Products in wire “baskets” are stacked high on metal racks; forklifts move through aisles during selling hours to restock shelves. The store gives discounts to customers who carry their own heavy appliances and furniture out of the store. Hyper markets have been very successful in world markets. For example, Carr four, the rage French retailer, successfully operates hundreds of these giant stores in Europe, South America and Asia. (10) SERVICE BUSINESS: For some business, the “Product line” is actually a service. Service retailers include hotels and motels, banks, airlines, colleges, hospitals, movie theaters, tennis clubs, bowing alleys, restaurants, repair services, hair care shops, and dry cleaners. Service retailers in the United States are growing faster than product retailers, and each service industry has its own retailing drama. Banks look for new ways to distribute their services, including automatic tellers, direct deposit, and telephone banking. Health organizations are changing the ways consumers get and pay for health services. They amusement industry has spawned Disney World and other theme park and H&R Block has built a franchise network to help consumers pay as little as possible. (11) WHOLESALING: Wholesaling includes all activities involved in selling goods and services to those buying for resale or business use. A retail bakery is engaging in wholesaling when it sell
pastry to the local hotel. We say wholesalers are those firms engaged primarily in wholesaling activity. Wholesalers but mostly from producers and sell mostly to retailer’s industrial consumers, and other wholesalers. Wholesalers but mostly from producers and sell mostly to retailer’s industrial consumer, and other wholesalers. Wholesalers are often better at performing one or more of the following channel functions. REMUNERATION: The Intermediaries are paid in the form of commission for the services rendered by them. The same is compensated by the manufacturers in the form of commission allowed by the manufacturer or added in the price of the goods sold. The primary objective of channels of distribution is to bridge the gap by resolving spatial and temporal discrepancies as to supply and demand. The achieve this vital objective the channels of distribution perform a number of function. These function may vary from a product from company to company. channels of distribution are as follows. ? Transfer of title of goods from channel to the next channel or to the ultimate consumer or user. ? Physical movement of goods from the point of production to the points of consumption. ? Shortage of goods at each level in the chain. ? Communication of information concerning the availability characteristics and price of goods, inventory and purchase. ? Creation of various utilities to the products such as time utility, place utility, convenience utility, possession utility etc., (a) SELLING AND PROMOTING Wholesaler sales force helps manufacturers reach any customers at a low cost. The wholesaler has more contacts and is often made trusted by the buyer than the distant manufacturer. However the major functions of
(b) BUYING AND ASSORTMENT BUILDING: Wholesalers can select items and build assortments needed by their customers, thereby saying the consumers much work. (c) WHEREHOUSING: Wholesalers hold inventories, thereby reducing the inventory costs and risks of suppliers and customers. (d) TRANSPORTATION: Wholesalers can provide quicker delivery to buyers because they are closer than the producers. (e) FINANCING: Wholesalers finance their customers by giving credit, and they finance their suppliers by ordering early and paying bills on time. (f) RISK BEARING: In Risk bearing there are the three major groups: ? Merchant Wholesalers ? Brokers and agents ? Manufacturer’s sales branches and offices. (g)MARKET INFORMATION: Wholesalers give information to suppliers and customers about competitors, new product and price developments.
(h) MANAGEMENT SERVICES AND ADVICE: Wholesalers often help retailers train their sales clerks, improve store layouts and displays, and sets up accounting and inventory control systems. (12) TYPES OF WHOLESALERS: 1) MERCHANT WHOLESALERS: Merchant wholesalers are independently owned business that take title to the merchandise they handle. They are the largest single group of wholesalers, accounting for roughly 50% of all wholesaling. Merchant wholesalers include two broad types: fullservice wholesalers and limited – wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence Wholesalers fall into service wholesalers. (a) FULL SERVICE WHOLESALERS: Full-service wholesalers provide a full set of services, such as carrying stock, using a sales force, offering credit, making deliveries, and providing management assistance. They are either wholesale merchants or industrial distributors. (b) LIMITED-SERVICE WHOLESALERS: Limited-service wholesalers offer fewer services to their suppliers and customers. There are several types of limited-service wholesalers. (c) CASH-AND-CARRY WHOLESALERS: Cash-and-carry wholesalers have a limited line of fast moving goods, sell to small retailers for cash, and normally do not deliver. Drops shippers operate in bulk industries such as coal, lumber, and heavy equipment. They do not carry inventory or handle the product. Once an order is received, they find a producer who ships the goods directly to the customer. Rack jobbers serve grocery and drug retailers, mostly in the area of non-food items. These retailers do not want to order and maintain displays of hundreds of non-food items. Rack jobbers send delivery trucks to stores, and the deliver person sets up racks of toys, paperbacks, hardware items health and beauty aids, or other items.
Producer’s cooperatives owned by farmer members, assemble farm produce to sell in local markets. There are divided among members at the end of the year. Mail-order wholesalers send catalogs to retail, industrial and institutional customers offering jewelry, cosmetics, special foods, and other small items. Their main customers are business in small outlying areas. They have no sales force to call on customers. (2) BROKERS AND AGENTS: Brokers and agents differ from merchant wholesalers in two ways: They do not take title to goods, and they perform only a few functions. Their main function is to aid in buying and selling, and for these services they earn a commission on the selling price. A broker brings buyers and sellers together and assists in negotiation. Brokers are paid by the parties hiring them. They do not carry inventory, get involved in financing, or assume risk. The most familiar examples are food, real estate brokers, insurance brokers and security brokers. (3) MANUFACTURER’S SALES BRANCHES AND OFFICES: The third major type of wholesaling is that done in manufacturer’s sales branches and offices by seller of buyers themselves rather through independent wholesalers. Manufacturers often set up their own sales branches and offices to improve inventory control. Selling and promotion. Sales branches carry inventory and are found in the dry goods and notion industries. Many retailers setup purchasing offices in major market centers such as HYDERABAD, MUMBAI, ANGLORE and DELHI. These purchasing offices a role similar to that of brokers or agents but are part of the buyer’s organization.
(13) PHYSICAL DISTRIBUTION: Physical distribution refers to the actual physical flow of products. In contrast, physical distribution management is the development and operation of process resulting in the effective and efficient physical flow of products. (14) TASKS OF PHYSICAL DISTRIBUTION: • Distribution centers: An effective inventory-location strategy may involve the establishment of one or more distribution centers. Such facilities are planned around markets rather than transportation requirements. The idea is to develop an efficient, fully integrated system for the flow or product-taking orders, filling them, and preparing for delivery to customers and one roof. Distribution centers can cut distribution costs by reducing the number of warehouse, pruning excessive inventories, and eliminating out-of-stock conditions. (15) TYPES OF WAREHOUSES: Any product producer, wholesaler, or retailer has the option of operating own private warehouse or using the services of a public warehouse. A private warehouse is more likely to be an advantage if (1) a company moves a large volume of products through in this flow. A public warehouse offers storage and handling facilities to individuals or companies, public warehousing costs are variable expenses. Customers pay only for the space they use, and only when they use it. Public warehouses can also provide office and product display space, and accept and fill order of sellers.
(16) TRANSPORTATION: A major function of the physical distribution system in many companies is transportation-shipping products to customers. Management must decide on both the mode of transportation and the particular carries. In this discussion we will focus on intercity shipments. Railroads, trucks, pipelines, water vessels, airplanes are the leading modes of transportation. STRATEGIES FOLLOWED BY THE NIMBLE PHARMACEUTICALS For each and every product produced I the industry or company to reach that product to the customers there is a process. Thus this types of process is called channel of distribution that means which act as “through in the distribution process of a particular product”. Here is the company name “Nimble Pharmaceuticals” where it is producing drugs and chemicals, which is situated in Hyderabad. Nimble pharmaceuticals distributed those products through indirect channel.
Company CA Distributors W.S. W.S Distributors W.S. W.S Distributors W.S. W.S
COMPANY First of all company produces some products by getting raw materials and other extra resources form outside and starts its production. Here Nimble pharmaceutical produces several products, which can cure various diseases. The company products are various types of tablets and syrups and other antibiotics, which are used to cure various diseases, which affects the human body. After producing these to reach consumers or (users) Customers Company sends their products to wholesalers through various channels. DISTRIBUTORS They play’s a vital role in the distribution process of the company products. After the production is completed products are sent to companies go down and from there to the company distributors. Company distributes products to the users who are situated at different place through various channels. Representatives mainly highlight their companies product and distribute goods from distributors. Distributors will get product at lower price because products in bulk quantities. In the case of purchasing huge quantities, company may provide free transport facilities. Therefore changing their profits plus transport changes, distribution send the product to other channels they will change less profit because they want make good quality available at low price to customers. WHOLESALERS After the company distributors wholesalers play a vital role in this distribution channel. Wholesalers purchase product from the company distributes in bulk quantity and sell those products to retailers in various areas in the market. These wholesalers purchase product from the company distributors at low price. Company distributors offer products to the wholesalers at low price because they purchase products in bulk quantities.
Distributors are situated at state capital cities. These distributors distribute goods to wholesalers and from them to retailers and from them to consumers. Distributors will have direct connection and close contact with company people. These distributors are having good communication and distribution capacity. Company will give offers, gifts, compliments, free samples., to the doctors and information about the company products and to convince the doctor towards our company to generate sales of company products through presentation. Distributors distribute products to all areas through various channels and also take necessary precautions and steps to increase sales. Company appoints representatives and through them also they distribute goods these representatives plays vital role. These representatives keep order from retailers to wholesalers or to distributors. RETAILERS Retailers are those individuals or organization persons who act as middle man between whole sellers and consumers Nimble Pharmaceuticals appoints some representatives and ask them to promote sales through Doctors. These retailers not only sell Nimble Pharmaceutical products but also other products, which are available in the market of the competitors. So to stand in the market against their competitors, representatives try to do some activities to increase their sales. They will give gifts, compliments and offers to retailers & doctors through whole sellers from the company side in order to concentrate mainly on their company product rather the competitor’s products. These retailers deal with various products, these retailers need not purchase products in bulk quantity. They will purchase by ordering products, which are needed or wanted at some time. Company mainly promotes sales through retailers by prescription from doctors. Whole sellers are situated mainly in cities and also district wise and area wise. Whole sellers need not of investment because they have to purchase product in bulk quantities some companies may also produce or sell goods to wholesalers by taking partly payment in advance before installing wholesale shop, some people may deposit amount to
companies distributors and carryout transactions. Companies appoint representatives go to each and every retailers and explain their product differentiating with their competitors products thus whole sellers must be ready to supply which are needed and in what capacity or which is ordered by them. The whole sellers mainly deal with company products. These wholesalers are also known as company dealers that are after company distributors some people who are able to invest more and having capacity to run business and also can deal more than one company.
FINDINGS According to the result of the survey I found the information from Retailers regarding products of Nimble Pharmaceutical Products. ? According to the survey among (100%) 67% of retailers keep the stock of Nimble Pharmaceutical Products and 33% of retailers not keeping the stock of Nimble Pharmaceutical Products so there is a scope to increase the distribution networks of Nimble Pharmaceutical Products by satisfying the remaining retailers (33%). ? According to the survey among 38% of retailers those who are not having the Nimble Pharmaceutical products. 62% were interested to keep the stock of Nimble Pharmaceutical Products. So distribute the stock of them through good sales people with good demonstration. ? According to the survey some of the retailers not keeping the stock because of less margins and not proper packing. ? According to the survey some of the retailers facing problems from the customer regarding to Nimble Pharmaceutical Products of less margin and not proper packing. ? According to the survey some of the retailers, want supportive activities from the company like fast transport, high margin, more quality, more credit time.
SUGGESTIONS The following suggestions have been made based on the findings of the study for improvement of distribution network of the Nimble Pharmaceutical Private Limited. In order to boost up the image and sales of the company advertising may be done in a better way through various medias. Direct interaction with customers may be improved through marketing executives. Company may be more prompt in responding to the retailer’s complaints. There is a scope for the company to gain market share through tapping rural markets. According to respondents Suggestions Company may be more liberal in distributing free samples, discount offers, gifts etc.
DECLERATION
I declare that the project report entitled “A PROJECT REPORT ON DISTRIBUTION NET WORK OF NIMBLE PHARMACEUTICALS (PVT) LTD.,” submitted by me for the degree of Master of Business Administration is record of work carried out by during period in NIMBLE PHARMACEUTICAL (PVT) LTD., from January to April 2005 under the guidance of Mr.S.RAMALINGAM SIR and has not formed the basis for the award of any degree, diploma, associate ship, fellow ship, titles in this or any other university or other similar institution of higher learning.
Signature of Student Counter Signature of Guide
CONTENTS
Chapter 1:Introduction Need for the study Scope of the study
Chapter 2:Chapter 3:Chapter 4:-
Objectives Limitations Methodology Industry profile Company profile Product profile Theoretical frame work Company Strategies Questionnaire Analysis Statistical Analization Findings Suggestions
Chapter 5:Chapter 6:Chapter 7:Chapter 8:-
BIBLIOGRAPHY
Gandhi J.C. A MANAGERIAL INTRODUCTION Seventh Reprint, Tata Mc Graw – Hill publishing Company Limited, New Delhi.
Kotler H.Philip, Armstrong Gray PRINCIPLES OF MARKETING Sixth Edition, Preentice Hall India Private Ltd. Rustom S Pavar, MODERN MARKETING MANAGEMENT Seventh Edition, Universal Book Stall, New Delhi. William I.Stanton, Michel I. Etzel, Bruck I.Walker. FUNDAMENTALS OF MARKETING, Mc.Graw-Hill International.
PROJECT WORK QUESTIONNAIRE
1. Name of the Shop: 2. Area situated (a) City (b) Town (c) Village
3. Number of customers visiting your shop (per day) (a) <=25 (b) <=50 (c) <=75 (d) above100
4. Do you keep the stock of “Nimble Pharmaceuticals” Yes / No If No 5. Do you want to keep the stock of “Nimble Pharmaceuticals” Yes / No If No 6. Reason for not keeping the stock of “Nimble Pharmaceuticals” products 7. Your opinion about “Nimble Pharmaceuticals” (a) Very good (b) Good (c) Satisfactory (d) Bad
8. If there any complaints from customers regarding “Nimble Pharmaceuticals” Yes / No If yes 9. Relating to (a) Quality (b) Price (c) Package (d) Non-availability (e) Any other
10. Do you want any supportive activities from the company? If yes
11. What kind of activities you want ? (a) Fast transportation (b) High margin (c) More credit time
(d) More quality (e) Any other 12. If you are keeping the stock of the company other than the “Nimble Pharmaceuticals” company what are their features influence you (a) More margin (d) Product quality 13. Is salesman visiting you? Yes / No If yes 14. Frequency of sales man visiting you (a) Week (b) 15 days (c) 1 Month (d) More than 1 Month (b) Fast transportation (e) Any other (c) Brand name
15. How frequently do you need salesman? (a) Week (b) 15 days (c) 1 Month (d) More than 1 Month
16. Do you face any problems regarding distribution? Yes / No
If Yes 17. Can you specify them? (a) Attitude of salesman (b) Slow distribution (c) Company don’t maintain full range (d) Any other 18. Does the company respond to you complaints? Yes / No 19. If you are asked to suggest medicine as a remedy which company products do you suggest? 20. Your valuable idea and suggestions about the “Nimble Pharmaceuticals”
QUESTION NO.1
The Number of Retailers keeping the stock of “Nimble Pharmaceutical Products”
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 67 33
PERCENTAGE (100) 67 33
During the survey the questions were directly asked to the retailers. Among (100) 67% are keeping the stock of “Nimble Pharmaceutical Products” and remaining 33% are not keeping the stock of “Nimble Pharmaceutical Products”.
QUESTION NO.2 The number of retailers those who are interested (or) not interested to keep the stock of Nimble Products.
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 62 38
PERCENTAGE (100) 62 38
The above question asked to retailer those who are not having the Nimble Pharmaceutical Product stock. And among them 62% of the retailers said that they want
to keep the stock of “Nimble Pharmaceutical Products” and 38% of retailers they don’t want to keep the stock of “Nimble Pharmaceutical Products”.
QUESTION NO.3 Reasons for not keeping the stock of “Nimble Pharmaceutical Products”. TABLE OF REPRESENTATION PERTICULARS Margin Quality Price Packing Distribution RETAILERS 28 6 19 10 37 PERCENTAGE (100) 28 6 19 10 37
The Retailers response, when the above question is asked, they were not satisfied, because of the above reason 28% of them said that less margin and 6% of them said less quality and 19% of them said high price and 10% of them said that bad packing and 37% of them said that slow distribution.
QUESTION NO.4 Retailer’s option about “Nimble Pharmaceutical Products” TABLE OF REPRESENTATION PERTICULARS Very good RETAILERS 48 PERCENTAGE (100) 48
Good Average (or) Satisfy Bad
29 17 6
29 17 6
The above table shows the different opinions of retailers about Nimble Pharmaceutical products. According survey 48% of them said that the products & sales are very good and 29% said good and 17% said satisfactory and 6% said bad.
QUESTION NO.5
Number of Retailers receiving complaints from customer regarding the “Nimble Pharmaceutical Products”
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 32 68
PERCENTAGE (100) 32 68
The above table shows that among 100 members 32% and receiving the complaints from customers about Nimble Pharmaceutical Products and 68% of them were not receiving any complaints (or) problems.
QUESTION NO.6
Retailers receiving complaints from customers regarding to “Nimble
Pharmaceutical Products”
TABLE OF REPRESENTATION
PERTICULARS Quality Price
RETAILERS 9 48
PERCENTAGE (100) 9 48
Packing Any other
38 5
38 5
Those who having the “Nimble Pharmaceutical Products” stock they are facing complaints from customers 9% of said retailing to quality. 48% said relating to price, 38% said relating to packing and 5% said they are facing other than above said problem.
QUESTION NO.7
The Number of retailers expecting supportive activities from the company?
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 83 17
PERCENTAGE (100) 83 17
Among the 100% of retailers 83% of them expecting the supportive activities from the company and only 17% of them are not expecting any supportive activities.
QUESTION NO.8
Different kind of supportive activities offered by Retailers.
TABLE OF REPRESENTATION
PERTICULARS Fast transport High Margin More Credit time More quality
RETAILERS 19 32 41 8
PERCENTAGE (100) 19 32 41 8
According to survey, 19% of them wanted fast transport, 32% of them wanted more margin 41% of them wanted more credit time and 8% of them wanted more quality.
QUESTION NO.9
The factors of other company which influence the retailer to keep the stock other than the “Nimble Pharmaceutical Products”.
TABLE OF REPRESENTATION
PERTICULARS More Margin Fast Transport Brand Name Product Quality Any other
RETAILERS 13 23 36 21 7
PERCENTAGE (100) 13 23 36 21 7
According to survey among 100% respondents 13% are influenced by more margin, 23% of them are influenced by fast transport. 36% are influence by brand name, 21% are influenced by product quality and 7% are influenced by other than above facts.
QUESTION NO.10
Salesman frequently visits by the Retailers.
TABLE OF REPRESENTATION
PERTICULARS Weekly 15 Days 1 Month Maintained 1 Month
RETAILERS 73 22 5 0
PERCENTAGE (100) 73 22 5 --
According to survey 73% of retailers visit sales-man in one week and 22% of retailers visit sales-man in 15 days and 5% of retailers visit sales-man in 1 month.
QUESTION NO.11
The number of Retailers faced problems regarding distribution network of “Nimble Pharmaceutical Products”.
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 43 57
PERCENTAGE (100) 43 57
The above table shows that among 100%, 43% of retailers faced problems regarding distribution and 57% are not facing any problems regarding distribution.
QUESTION NO.12
Specification of problems faced by Retailers.
TABLE OF REPRESENTATION
PERTICULARS Attitude of Salesman Slow Distribution Didn’t Maintain full Range Any other
RETAILERS 55 10 18 17
PERCENTAGE (100) 55 10 18 17
According to the survey 55%, said that they facing problem with the attitude of salesman 10% and that they were facing the problems as slow distribution, 18% said that company do not maintain full range and 17% have other problems.
QUESTION NO.13
Does the company respond to your complaint?
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 83 17
PERCENTAGE (100) 83 17
According to survey the question is asked to retailers, those who are having the stock as Nimble Pharmaceutical Products, 83% respond to their complaints and 17% said the company does not respond to the complaints.
doc_315897495.doc
Distribution network operators (DNOs) are companies licensed to distribute electricity in Great Britain by the Office of Gas and Electricity Markets.
Research Report on Distribution Net Work of Nimble Pharmaceuticals (Pvt) Ltd
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr.GRANDHE RAJESH, a student of Master of Business Administration of Dr M.G.R. Educational and Research Institute, has successfully completed the project – “A PROJECT REPORT ON DISTRIBUTION NETWORKS OF NIMBLE PHARMACEUTICALS”, HYDERABAD from January 2005 to April 2005.
During this tenure with us, his character and conduct are found good.
MANAGING DIRECTOR
INTRODUCTION
In ancient period there were no medicines for any disease. They used to take Ayurvedic medicines only. There are some people known well about Ayurvedic medicines only of cause these medicines can’t care completely. In those days human beings are not having proper medical facilities. They do not even know what the disease is only few people identify and give medicines for chine. Similarly for animals also. If the disease into the human being slowly increases to dangerous stage and after words animal dies. No one was to take precautions. Later on for some years a few people took active interest and made resonate and identify medicines for human beings. That is in 1901. The foundation of the Indian Pharmaceutical industry was laid as a small factory known as Bengal Chemical and pharmaceuticals words established in Calcutta. The progress made under the British rule in significant. The country depends largely on U.K. France and Germany for its requirement of drugs and medicines. Later on pharmaceutical industries in the country developed on large scale invades to reduce the imports and to increase the exports of drugs and chemicals which one necessary for the medicines. Taking this as a basis, Nimble Pharmaceutical products entered into the market. For producing human pharmaceutical. Nimble pharmaceutical producing different variety of products not only to increase the sales and to gain profits but also for the people welfare. Thus is this way medicines are introduced by the chemist for different diseases, which make man to suffer a lot. Taking this Nimble Pharmaceuticals entered into field and starts its business and ranks good place in market. It is having a good distribution channel to all over the country in order to meet the customers and making them free from the diseases that they are suffering from. In this the company holds one of the good position among pharmaceutical industries in country.
NEED OF STUDY
Today we are in a position to prevent major life-threatening illness with the help of well-advanced medical services. At present the Pharmaceutical industry of India is one of the largest and most advanced among the developing countries besides manufacturing of product, developing product to the target group is a vital part in pharmaceutical company. Hence the study on distribution network is helpful in knowing how the consumers are able to receive the end products.
SCOPE OF THE STUDY
The scope of study is to restricted to retailers only under this study a questionnaire survey was conducted in order to evaluate views and opinions of the re-tailers towards Nimble Pharmaceutical private Ltd. The retailers are surveyed Survey was done from the retailers.
OBJECTIVES OF THE STUDY
The main objectives behind the present project work to study the distribution network towards the company products of Nimble Pharmaceutical (Pvt) Ltd., Other objectives include: 1. To study the awareness of the retailers towards the company’s products. 2. To study the potential market for the products in comparison with other company Products. 3. To evaluate the attitude of the retailers by analyzing their opinions about price, quality and packing of products. 4. To find out and analyze problems faced by the retailers.
LIMITATIONS OF THE STUDY
The following are the limitations of the study. ? The survey is confined to a limited area about the marketing of drugs and chemicals is very vast. ? The scope for the gathering information was very less as I am vocational trainee. ? Time also stood as a major limitation.
METHODOLOGY
The concept of methodology relates to the Methods adopted for the research work or project work it also includes process of collection of data different sources Methodology is the basis for the systematic performances unless the work is pre planned or organized property, the result cannot be obtained satisfactorily. Methodology is a science of systems and methods of conduction the research work. It includes proper thinking of devices prior to commencement of work performance.
Sources of collection of Data: 1. Primary source
? Personal interviews and discussions with executives. ? Observations ? Surveys
2. Secondary sources
? Official files and records
Primary sources:
? Personal interviews and discussions with executives This method of unstructured interview was adopted to collect data from the officials of the company through personal interviews and discussions on various matters such as their products, pricing strategies distribution channels, promotional activities., ? Observations: Through Observations in the organizations; I came to know about what type of services and products that different department of the organization. ? Surveys; Through questionnaire survey regarding the Nimble Pharmaceutical products, I came to know about the retailers views, options and reactions and time the customer satisfaction towards their services.
Secondary sources:
? Official records and files: The data is collected from the records and files of the organization such as purchase order sales order previous projects reports etc.,
INDUSTRY PROFILE
The foundation of the Indian Pharmaceutical industry was laid in the beginning of the current century when, in ‘1901, a small factory known as the Bengal chemicals and pharmaceutical works as established in Calcutta. The two would was gave fillip to the development of the industry. The progress made under the British rule was insignificant the country depend largely on the U.K, France and Germany for its requirement of day and medicines. The development of Indian drugs and pharmaceutical industry was not commensurate with the size of the country and growing needs of her population, when Indian embarked on her planned economic expansion about 45 years ago. Since when the progress of the industry has been substation and many – sided with the result that it has become of the countries leading industries. India is now producing a large Quality of varied pharmaceutical products. In 1948 the sale of pharmaceutical products amounted to just Rs.100 millions by 1954 the scale of pharmaceutical products amounted Rs.540 millions in 1958. The figures stood as between Rs.850 millions and 90 millions in 1961 and in 1968 as much as Rs.1750 millions worth of pharmaceutical were produced. The total turn over of formulations and basic drugs has increased from Rs.15000 millions in 1980-1981 and it is about 1,00,000 million 1994-1995 and it has raise to 1,85,000 in 1998-1999. DRUG PRICING: The are about 500 bulk drugs which are consumed in the country, out of which about 350 are produced in India are being imported from the other countries. The prices of bulk drugs and formulations are regulated as per the provisos of the DPCO (Drug Price Control Order), 1955. At present 75 bulk drugs and their formulations are under DPCO. 1955 to make it more selective and effective.
To increase indigenous research and development the field of drugs. One of the schemes of the Government is to exempt bulk drugs and formulations based there upon from price control in favor particular manufacturing it from the basic stage. Some bulk drugs formulations have been grunted exempted from price control of a period of 5 years from the date of commencement of their commercial production on the grounds of the indigenous development. PRODUCTION OF PHARMACEUTICAL: Production of drugs and pharmaceuticals increased at a faster rate in recent years than in 1984-85 despite various difficulties faced by the industry particular by way sustained increase of raw materials, packing etc., and inadequate availability of power and water. The country has reached stage of self-sufficiency in the essential drugs. It is estimated that during 1994-95 the production bulk drugs was of the order of Rs.15180 millions and formulations of Rs.79350 millions. RESEARCH AND DEVELOPMENT: The pharmaceutical industry is one of the highly intensive industry on account of ? Rapid obsdencence of products and need to replace them continuously ? Inter disciplinary charter of the research need for the new drugs invention and ? Continuous social pressure to reduce the cost of the drugs. The great advances in the development countries have been due to large inputs that industry has provided for its research and development work. In India research and development in the area of drugs and pharmaceuticals in carried out in about 143 in house research and development units in industry recognized in by the department of scientific and industrial research, 6 laboratories of the Council for
Scientific and Industrial Research (CISIR), several laboratories of Indian Council of Medical Research (ICMR) and nearly 50 universities. The expenditure incurred by the in-house Research and development units over years had been the follow; 1991-92 Rs.800 Millions 1992-93 Rs.950 Millions 1993-94 Rs.1025 Millions 1994-95 Rs.1250 Millions 1995-96 Rs.1400 Millions 1996-97 Rs.1750 Millions 1997-98 Rs.2000 Millions 1998-99 Rs.2350 Millions 1999-00 Rs.2750 Millions These in-house Research and development units are well equipped with necessary laboratory and instrumental facilities, pilot plant facility and are manned by qualified, and competent research and development personnel; they are engaged in the process development personnel, product development. Improvement in the process / product development, cost reduction and overall quality improvement leading manufacturing practices (GMP). EXPORT:
30 years ago an export promotion council for chemical and pharmaceutical and other allied products was setup to promote product. Delegations sponsored by the council have joined many countries to find market to Indian pharmaceutics. As a result bulk drugs worth about 100 million. Have been exported to foreign land in 1993-94. Drugs of vegetable origin account for an appreciable share in the exports of
pharmaceuticals from the country.
An export active in the field of finished
pharmaceutical is a comparatively recent origin. The industry which begin as an importer of finished preparation and which before independence, wan mainly engaged in processing imported bulk material into formulation switched over rapid into basic manufacturing considerable has been made in this direction with the result that the industry is today net foreign exchange earner. Bulk drugs are possessed to become the new star on the export. During the four years between 1988-89 to 1991-92 export have secured from 24000 Millions to Rs.7226 Millions. A decade ago, we were finding out feel in the international bulk drug market. Today we are walking tall. Certainly there have been sweeping changes in the bulk drugs export. India is new perhaps the largest manufacturing, in the world in many drugs. Indeed India bulk drugs one eagerly sought often in Hamburg, London and New York. Principal centers of the globe pharmaceutical trade. competing country products. Since they are marginally cheaper then the other
COMPANY PROFILE Name of the Company Address of the Firm : : Nimble Pharmaceuticals 1-1-385/23, Gandhi Nagar, HYDERABAD. Line of Activity : Pharmaceutical Formulations 1. Tablets both Betalactam and Non-betalactam drugs 2. Capsules both Betalactam and Non-betalactam drugs 3. Liquid orals both Betalactam and Non-betalactam drugs 4. Syringes and Antibiotics.
Constitutions of the Company Size of the Industry Year of Establishment Manufacturing commenced from Outline of the Project
: : : : :
Private Limited Medium Scale March, 1997 June, 1997 Land & Buildings - 2 crores Machinery & Equipment - 1crore
Land and Building
:
This unit is spaciously built in an Open area of 2 acres land
MANAGING DIRECTOR GENERAL MANAGER SALES MANAGER M.R. M.R. M.R. M.R. M.R. M.R. M.R. M.R. M.R. M.R. M.R. M.R.
THEORETICAL FRAMEWORK OF THE CHANNELS OF DISTRIBUTION
The Word ‘Channel’ has its origin from the French Word for ‘canal’ Thus channel is a route through which goods passes from one to another. In other words the route through which goods move from place of production to the place of consumption is called channel of distribution are the means employed by manufacturer and seller to get the product to reach the market and thereby into the hands of consumers. In this way channels of distribution refers to various agencies through which the goods flow from the producer to the ultimate consumer.
DEFINITION:
A channel of distribution for a product is the route taken by the title to the goods as they move from the producer to the ultimate consumers or the end users. WILLIAM.J.STANTON Channels of distribution is the structure of Intra company, Organization units and extra company agents and dealers. Wholesalers and retail, through which a commodity, product services is market. AMERICAN MARKETING ASSOCIATION Distribution channel as “ the combination and sequence of the agencies through which one or more of marketing flows move”.
VAILE, GEATHER AND COX From above study we conclude that channels of distribution is a route or pathway composed of intermediaries also called middlemen who perform such function as needed to ensure smooth flow of goods and services from the manufacturing ends to the consuming ends in order to achieve marketing objectives of company. A distribution system is a key external resource. Normally it takes years to build and it is not easily changed. It ranks in importance with key external resources such as manufacturing research engineering and field sales personnel and facilities. It represent a significant corporate to a large number of independent companies whose business is distribution and particular market they secure. It represents, as well as commitment to a set of policies and practices that constitute basic fabric on which is woven an extensive set of long term relationships.
FEATURES: From the above definition the main features or elements of channel of distribution may summarized as under.
ROUTE OR PATHWAY: Channel of distribution is route or pathway through which goods and services pass from the manufacture to consumers. The flow of good and services is smooth and sequential and usually unidirectional.
COMPOSITION: It is composed of intermediaries such as wholesalers, retailers, agents, etc., is also called middlemen who participate in the flow voluntarily. FUNCTIONS: The Intermediaries perform such functions, which facilitate transfer of ownership, title and possession of goods and services from manufacturer to consumers. ROLE AND IMPORTANCE OF DISTRIBUTION: Channel of distribution play a very important role in the flow of goods and services from the producers to the ultimate consumers. They are the backbone of the marketing. They add place and time utility. The importance of the channels of distribution of goods may be summarized as under. Channel of distribution help the consumer to buy. The goods at the time and place they need. They create time and place utilities to the buyer. They help the producer in his production function by relieving from marketing problems. Thus the producer can pay his full attention to organize the production function information to the producer regarding the taste and needs of consumers, competition in the market. The channel of distribution helping in stabilizing prices of the product by stocks the goods and balancing demand and supply. Channels of distribution routine the sale of the product. Channel of distribution finance the producer as well as the consumer. (1) TYPES OF CHANNEL POLICIES: At this point in designing a channel, a firm decides what role is to be assigned to distribution within the marketing mix, weather direct or indirect distribution is better; and which type of middlemen will be used. Next the company will decide on the intensity of
distribution – that is, how many middlemen will be used at the wholesale and retail levels in a particular territory. (a) INTENSIVE DISTRIBUTION: Under intensive distribution, a producer sells his product through every available outlet in the market where a consumer might reasonably look for it. Ultimate consumers demand immediate satisfaction from convenience goods and will not defer in purchases to find a particular brand. Thus manufacturers of this category of product often use intensive distribution
(b) SELECTIVE DISTRIBUTION:
In selective distribution, a producer sells his product through multiple, but not all, wholesalers and retailers in market where a consumer might reasonably look for it. Selective distribution is appropriate for consumer shopping goods, such as various types of clothing and appliances, and for business accessory equipment, such as office equipment and handhold tools.
(c) EXCLUSIVE DISTRIBUTION:
Under exclusive distribution. The manufacturer agrees to sell his product only on a single wholesaling middleman or retailer in a given market. At the wholesale, such an arrangement is normally termed an exclusive distribution; at the retail level, an exclusive dealership. A manufacturer may prohibit a middleman who holds an exclusive distributorship or dealership from handling directly a competing product line.
(2) IDENTITY MAJOR ALTERNATIVES: When the company has defined its channel objectives, it should next identify its major channel alternatives in terms of typed of intermediaries, number of intermediaries, and the responsibilities of each channel member.
(a) TYPES OF MIEELEMEN: A firm should identify the types of channel members available to carry out its channel work. For, example, suppose a manufacturer of test equipment has developed an audio device that detects poor mechanical connections in any machine with moving parts. Company executives think that this product would have a market in all industries where electric, combustion, or steam engines are made or used. This market includes industries such as aviation. Automobile, railroad, food canning, construction, and oil. The company’s current sales force is small, and the problem is how best to reach these different industries. The following channel alternatives might merge from management discussion.
(b) COMPANY SALES FORCE: Expand the company’s direct sales force Assign sales people to territories and make them contact all prospects the area or develop separate company sales force for different industries. (c)MANUFACTURER’S AGENCY: Hire agents or independent firms whose sales forces handle related products from many companies-in different regions or industries to sell the new test equipment.
(d) INDUSTRIAL DISTRIBUTORS: Find distributors in the different regions or industries who will buy and carry the new line. Give them exclusive distribution. Good margins, product training and promotional support. (3) CHANNEL MANAGEMENT DECISIONS: Once the company has reviewed its channel alternatives and decided on the best channel designing, it must implement and manage the chosen strategy. Management can call for selecting and motivating individual channel members and evaluating their performance over time. (1) SELECTING CHANNEL MEMBERS: Producers vary in their ability to attract qualified marketing intermediaries. Some producers have no trouble attracting new dealers for its Lexus line. In fact, it had to turn down many would-be resellers. In some cases, the promise of exclusive distribution for a desirable product will draw plenty of applicants. (2) MOTIVATING CHANNEL MEMBERS: Once selected, channel members must be continuously motivated to do their best. The company must sell not only through the intermediaries, but also to them. The most producers see the problem as finding ways to gain intermediary cooperation. They use the carrot and stick approach. At times they offer positive motivators such as higher margins, special deals. Premium, cooperative advertising allowances, and sales contests. At other times they use negative motivators, such as threatening to reduce margins to slow down delivery or to put and end to the relationship altogether. A producer using this approach usually is said to be having not done a good job of studying the needs, problems, strengths, and weakness of his distributors.
(3) EVALUATING CHANNEL MEMBERS: The producer must regularly check channel member’s performance against standards such as sales quotas, average inventory levels, customer delivery time, treatment of damaged and lost goods, cooperation in company promotion and training programs, and services to the customer. The company should recognize and reward intermediaries who are performing well. Those who are performing poorly should be helped or, as a last resort, replaced. (4) RETAILING: Retailing includes all the activities involved in selling goods or service directly to final consumers for their personal, non-business use. Many institutions – Manufacturers, Wholesalers, and Retailers – do retailing. But most retailing is done by retailers business whose sales come primarily from retailing and although most retailing is done in retail stores, as a recent trend. We hear non-store retailing – selling by mail, telephone, door-to-door contact vending machines, and numerous electronic means. As store retailing accounts for most of the retail business, it is discussed it first. Then non-store retailing is discussed. (5) SPECIALTY STORES: A specialty store carries a narrow product line with a deep assortment within that line. Examples include store selling sporting goods, furniture, books, electronics, flowers, or toys. Specialty stores can be classified further by the narrowness of their product lines. For example, a clothing store is a single – line store, a men’s clothing store is a limited – line store, and men’s custom shirt store is a super – specialty store. Today specialty stores are flourishing for several reasons. The increasing use of market segmentation, market targeting, and product specialization has resulted in a greater need for stores that focus on specific product and segments.
(6) DEPARTMENT STORE: In a retail organization that carries a wide variety of product lines – typically clothing, home furnishings and household goods, each line is operated as a separate department managed by specialist buyers or merchandisers. In recent years, many large department – store chains have been joining rather than fighting the competition by diversifying into discount and specialty stores. DaytonHudson for example, operated Target, Melvyn’s, ‘B.Dalton and many other chains in addition to its Dayton’s Hudson’s. and other department stores. These discount and specialty operations how account for more than 880% of the chain’s total corporate sales. (7) SUPERMARKET: Supermarkets are large, low margin, high-volume; self-service stores than carry a wide variety of food, laundry, and household product. Most U.S. supermarket stores are owned by supermarket chains such as Safeway, Kroger, A&P, Winn-Dixie, Punblix, Food Lion, Vons and Jewel, Chains account for almost 70% of all supermarket sales. The supermarkets introduced the concept of self-service. Customer turnstiles, and checkout counters. Supermarket growth took off in the 1930’s and grew rapidly for several decades. However, most supermarkets today are facing slow sales growth because of slower population growth and an increase in competition from convenience stores, discount food stores, and superstores. They also have been hit hard by the rapid growth of out-of-home eating. Thus, supermarkets are looking for new ways to build their sales. Supermarkets also are improving their facilities and services to attract more customers. Typically improvements are better locations, improved décor, longer store hours, check cashing, delivery, and even child-care centers. Although consumers have always expected supermarkets to offer good prices. Convenient locations, and speedy checkout, today’s more sophisticated food buyer wants even more. Many supermarkets, any therefore, are “moving upscale” with the market, providing “from scratch” bakeries, gourmet discounters and fresh seafood department. Others are cutting costs establishing
more efficient operations, and lower prices in order to compete more effectively with food discounters. Finally, to attract more customers, many large supermarket chains are starting to customize their stores for individual neighborhoods. They are tailoring store size, product assortments, prices and promotions to the economic and needs of local markets. (8) CONVENIENCE STORES: Convenience stores are small that carry a limited line of high-turnover convenience goods. Examples include 7-eleven, Circle K, and Stop-N-Go stores. These stores locate near residential areas and remain open for long hours, seven days a week. Convenience stores must charge high prices to make up for higher operating costs and lower sales volume, but they satisfy an important customers need. willing to pay for the convenience. During the 1980’s however, the convenience store industry suffered from overcapacity as its primary market of young, blue-collar men shrunk. As a result, many convenience store operators redesigned and their stores with female customers in mind. (9) SUPERSTORE, COMBINATION STORE AND HYPERMARKET: Superstores, combination stores, and hypermarkets are all larger than the conventional supermarket. Superstores are almost twice the size of regular supermarkets and carry a large assortment of routinely purchased food and nonfood items. They offer such services as dry cleaning, post offices, photo finishing, check cashing, bill paying, launch counters, car care, and per care. Because of their wider assortment, superstore prices are 5 to 6 percent higher than are those of conventional supermarkets. Many leading chains are moving towards superstores. They include Safe way’s Pak ‘N Pay and Path mark Super Centers’. Combination stores are combined food and drug stores. They average about one and a half football field in size i.e., about twice the size of superstores examples are Consumers use convenience store for “fill-in” purchase at off hours or when time is short, and they are
A&P’s family Mart, Wal Mart’s Super centers, and Kmart’s Super centers. Combinations stores take less than 5% of the business done by food stores, but account for 21% of new grocery store openings. Hyper markets are even bigger than combination stores, perhaps as large as six football fields. They combine supermarket, discount, and warehouse retailing. A typical hypermarket may have 50 checks out counters. They carry more than just routinely purchased goods also selling furniture, appliances, clothing, and many other things, the hyper market operates like a warehouse. Products in wire “baskets” are stacked high on metal racks; forklifts move through aisles during selling hours to restock shelves. The store gives discounts to customers who carry their own heavy appliances and furniture out of the store. Hyper markets have been very successful in world markets. For example, Carr four, the rage French retailer, successfully operates hundreds of these giant stores in Europe, South America and Asia. (10) SERVICE BUSINESS: For some business, the “Product line” is actually a service. Service retailers include hotels and motels, banks, airlines, colleges, hospitals, movie theaters, tennis clubs, bowing alleys, restaurants, repair services, hair care shops, and dry cleaners. Service retailers in the United States are growing faster than product retailers, and each service industry has its own retailing drama. Banks look for new ways to distribute their services, including automatic tellers, direct deposit, and telephone banking. Health organizations are changing the ways consumers get and pay for health services. They amusement industry has spawned Disney World and other theme park and H&R Block has built a franchise network to help consumers pay as little as possible. (11) WHOLESALING: Wholesaling includes all activities involved in selling goods and services to those buying for resale or business use. A retail bakery is engaging in wholesaling when it sell
pastry to the local hotel. We say wholesalers are those firms engaged primarily in wholesaling activity. Wholesalers but mostly from producers and sell mostly to retailer’s industrial consumers, and other wholesalers. Wholesalers but mostly from producers and sell mostly to retailer’s industrial consumer, and other wholesalers. Wholesalers are often better at performing one or more of the following channel functions. REMUNERATION: The Intermediaries are paid in the form of commission for the services rendered by them. The same is compensated by the manufacturers in the form of commission allowed by the manufacturer or added in the price of the goods sold. The primary objective of channels of distribution is to bridge the gap by resolving spatial and temporal discrepancies as to supply and demand. The achieve this vital objective the channels of distribution perform a number of function. These function may vary from a product from company to company. channels of distribution are as follows. ? Transfer of title of goods from channel to the next channel or to the ultimate consumer or user. ? Physical movement of goods from the point of production to the points of consumption. ? Shortage of goods at each level in the chain. ? Communication of information concerning the availability characteristics and price of goods, inventory and purchase. ? Creation of various utilities to the products such as time utility, place utility, convenience utility, possession utility etc., (a) SELLING AND PROMOTING Wholesaler sales force helps manufacturers reach any customers at a low cost. The wholesaler has more contacts and is often made trusted by the buyer than the distant manufacturer. However the major functions of
(b) BUYING AND ASSORTMENT BUILDING: Wholesalers can select items and build assortments needed by their customers, thereby saying the consumers much work. (c) WHEREHOUSING: Wholesalers hold inventories, thereby reducing the inventory costs and risks of suppliers and customers. (d) TRANSPORTATION: Wholesalers can provide quicker delivery to buyers because they are closer than the producers. (e) FINANCING: Wholesalers finance their customers by giving credit, and they finance their suppliers by ordering early and paying bills on time. (f) RISK BEARING: In Risk bearing there are the three major groups: ? Merchant Wholesalers ? Brokers and agents ? Manufacturer’s sales branches and offices. (g)MARKET INFORMATION: Wholesalers give information to suppliers and customers about competitors, new product and price developments.
(h) MANAGEMENT SERVICES AND ADVICE: Wholesalers often help retailers train their sales clerks, improve store layouts and displays, and sets up accounting and inventory control systems. (12) TYPES OF WHOLESALERS: 1) MERCHANT WHOLESALERS: Merchant wholesalers are independently owned business that take title to the merchandise they handle. They are the largest single group of wholesalers, accounting for roughly 50% of all wholesaling. Merchant wholesalers include two broad types: fullservice wholesalers and limited – wholesalers absorb risk by taking title and bearing the cost of theft, damage, spoilage, and obsolescence Wholesalers fall into service wholesalers. (a) FULL SERVICE WHOLESALERS: Full-service wholesalers provide a full set of services, such as carrying stock, using a sales force, offering credit, making deliveries, and providing management assistance. They are either wholesale merchants or industrial distributors. (b) LIMITED-SERVICE WHOLESALERS: Limited-service wholesalers offer fewer services to their suppliers and customers. There are several types of limited-service wholesalers. (c) CASH-AND-CARRY WHOLESALERS: Cash-and-carry wholesalers have a limited line of fast moving goods, sell to small retailers for cash, and normally do not deliver. Drops shippers operate in bulk industries such as coal, lumber, and heavy equipment. They do not carry inventory or handle the product. Once an order is received, they find a producer who ships the goods directly to the customer. Rack jobbers serve grocery and drug retailers, mostly in the area of non-food items. These retailers do not want to order and maintain displays of hundreds of non-food items. Rack jobbers send delivery trucks to stores, and the deliver person sets up racks of toys, paperbacks, hardware items health and beauty aids, or other items.
Producer’s cooperatives owned by farmer members, assemble farm produce to sell in local markets. There are divided among members at the end of the year. Mail-order wholesalers send catalogs to retail, industrial and institutional customers offering jewelry, cosmetics, special foods, and other small items. Their main customers are business in small outlying areas. They have no sales force to call on customers. (2) BROKERS AND AGENTS: Brokers and agents differ from merchant wholesalers in two ways: They do not take title to goods, and they perform only a few functions. Their main function is to aid in buying and selling, and for these services they earn a commission on the selling price. A broker brings buyers and sellers together and assists in negotiation. Brokers are paid by the parties hiring them. They do not carry inventory, get involved in financing, or assume risk. The most familiar examples are food, real estate brokers, insurance brokers and security brokers. (3) MANUFACTURER’S SALES BRANCHES AND OFFICES: The third major type of wholesaling is that done in manufacturer’s sales branches and offices by seller of buyers themselves rather through independent wholesalers. Manufacturers often set up their own sales branches and offices to improve inventory control. Selling and promotion. Sales branches carry inventory and are found in the dry goods and notion industries. Many retailers setup purchasing offices in major market centers such as HYDERABAD, MUMBAI, ANGLORE and DELHI. These purchasing offices a role similar to that of brokers or agents but are part of the buyer’s organization.
(13) PHYSICAL DISTRIBUTION: Physical distribution refers to the actual physical flow of products. In contrast, physical distribution management is the development and operation of process resulting in the effective and efficient physical flow of products. (14) TASKS OF PHYSICAL DISTRIBUTION: • Distribution centers: An effective inventory-location strategy may involve the establishment of one or more distribution centers. Such facilities are planned around markets rather than transportation requirements. The idea is to develop an efficient, fully integrated system for the flow or product-taking orders, filling them, and preparing for delivery to customers and one roof. Distribution centers can cut distribution costs by reducing the number of warehouse, pruning excessive inventories, and eliminating out-of-stock conditions. (15) TYPES OF WAREHOUSES: Any product producer, wholesaler, or retailer has the option of operating own private warehouse or using the services of a public warehouse. A private warehouse is more likely to be an advantage if (1) a company moves a large volume of products through in this flow. A public warehouse offers storage and handling facilities to individuals or companies, public warehousing costs are variable expenses. Customers pay only for the space they use, and only when they use it. Public warehouses can also provide office and product display space, and accept and fill order of sellers.
(16) TRANSPORTATION: A major function of the physical distribution system in many companies is transportation-shipping products to customers. Management must decide on both the mode of transportation and the particular carries. In this discussion we will focus on intercity shipments. Railroads, trucks, pipelines, water vessels, airplanes are the leading modes of transportation. STRATEGIES FOLLOWED BY THE NIMBLE PHARMACEUTICALS For each and every product produced I the industry or company to reach that product to the customers there is a process. Thus this types of process is called channel of distribution that means which act as “through in the distribution process of a particular product”. Here is the company name “Nimble Pharmaceuticals” where it is producing drugs and chemicals, which is situated in Hyderabad. Nimble pharmaceuticals distributed those products through indirect channel.
Company CA Distributors W.S. W.S Distributors W.S. W.S Distributors W.S. W.S
COMPANY First of all company produces some products by getting raw materials and other extra resources form outside and starts its production. Here Nimble pharmaceutical produces several products, which can cure various diseases. The company products are various types of tablets and syrups and other antibiotics, which are used to cure various diseases, which affects the human body. After producing these to reach consumers or (users) Customers Company sends their products to wholesalers through various channels. DISTRIBUTORS They play’s a vital role in the distribution process of the company products. After the production is completed products are sent to companies go down and from there to the company distributors. Company distributes products to the users who are situated at different place through various channels. Representatives mainly highlight their companies product and distribute goods from distributors. Distributors will get product at lower price because products in bulk quantities. In the case of purchasing huge quantities, company may provide free transport facilities. Therefore changing their profits plus transport changes, distribution send the product to other channels they will change less profit because they want make good quality available at low price to customers. WHOLESALERS After the company distributors wholesalers play a vital role in this distribution channel. Wholesalers purchase product from the company distributes in bulk quantity and sell those products to retailers in various areas in the market. These wholesalers purchase product from the company distributors at low price. Company distributors offer products to the wholesalers at low price because they purchase products in bulk quantities.
Distributors are situated at state capital cities. These distributors distribute goods to wholesalers and from them to retailers and from them to consumers. Distributors will have direct connection and close contact with company people. These distributors are having good communication and distribution capacity. Company will give offers, gifts, compliments, free samples., to the doctors and information about the company products and to convince the doctor towards our company to generate sales of company products through presentation. Distributors distribute products to all areas through various channels and also take necessary precautions and steps to increase sales. Company appoints representatives and through them also they distribute goods these representatives plays vital role. These representatives keep order from retailers to wholesalers or to distributors. RETAILERS Retailers are those individuals or organization persons who act as middle man between whole sellers and consumers Nimble Pharmaceuticals appoints some representatives and ask them to promote sales through Doctors. These retailers not only sell Nimble Pharmaceutical products but also other products, which are available in the market of the competitors. So to stand in the market against their competitors, representatives try to do some activities to increase their sales. They will give gifts, compliments and offers to retailers & doctors through whole sellers from the company side in order to concentrate mainly on their company product rather the competitor’s products. These retailers deal with various products, these retailers need not purchase products in bulk quantity. They will purchase by ordering products, which are needed or wanted at some time. Company mainly promotes sales through retailers by prescription from doctors. Whole sellers are situated mainly in cities and also district wise and area wise. Whole sellers need not of investment because they have to purchase product in bulk quantities some companies may also produce or sell goods to wholesalers by taking partly payment in advance before installing wholesale shop, some people may deposit amount to
companies distributors and carryout transactions. Companies appoint representatives go to each and every retailers and explain their product differentiating with their competitors products thus whole sellers must be ready to supply which are needed and in what capacity or which is ordered by them. The whole sellers mainly deal with company products. These wholesalers are also known as company dealers that are after company distributors some people who are able to invest more and having capacity to run business and also can deal more than one company.
FINDINGS According to the result of the survey I found the information from Retailers regarding products of Nimble Pharmaceutical Products. ? According to the survey among (100%) 67% of retailers keep the stock of Nimble Pharmaceutical Products and 33% of retailers not keeping the stock of Nimble Pharmaceutical Products so there is a scope to increase the distribution networks of Nimble Pharmaceutical Products by satisfying the remaining retailers (33%). ? According to the survey among 38% of retailers those who are not having the Nimble Pharmaceutical products. 62% were interested to keep the stock of Nimble Pharmaceutical Products. So distribute the stock of them through good sales people with good demonstration. ? According to the survey some of the retailers not keeping the stock because of less margins and not proper packing. ? According to the survey some of the retailers facing problems from the customer regarding to Nimble Pharmaceutical Products of less margin and not proper packing. ? According to the survey some of the retailers, want supportive activities from the company like fast transport, high margin, more quality, more credit time.
SUGGESTIONS The following suggestions have been made based on the findings of the study for improvement of distribution network of the Nimble Pharmaceutical Private Limited. In order to boost up the image and sales of the company advertising may be done in a better way through various medias. Direct interaction with customers may be improved through marketing executives. Company may be more prompt in responding to the retailer’s complaints. There is a scope for the company to gain market share through tapping rural markets. According to respondents Suggestions Company may be more liberal in distributing free samples, discount offers, gifts etc.
DECLERATION
I declare that the project report entitled “A PROJECT REPORT ON DISTRIBUTION NET WORK OF NIMBLE PHARMACEUTICALS (PVT) LTD.,” submitted by me for the degree of Master of Business Administration is record of work carried out by during period in NIMBLE PHARMACEUTICAL (PVT) LTD., from January to April 2005 under the guidance of Mr.S.RAMALINGAM SIR and has not formed the basis for the award of any degree, diploma, associate ship, fellow ship, titles in this or any other university or other similar institution of higher learning.
Signature of Student Counter Signature of Guide
CONTENTS
Chapter 1:Introduction Need for the study Scope of the study
Chapter 2:Chapter 3:Chapter 4:-
Objectives Limitations Methodology Industry profile Company profile Product profile Theoretical frame work Company Strategies Questionnaire Analysis Statistical Analization Findings Suggestions
Chapter 5:Chapter 6:Chapter 7:Chapter 8:-
BIBLIOGRAPHY
Gandhi J.C. A MANAGERIAL INTRODUCTION Seventh Reprint, Tata Mc Graw – Hill publishing Company Limited, New Delhi.
Kotler H.Philip, Armstrong Gray PRINCIPLES OF MARKETING Sixth Edition, Preentice Hall India Private Ltd. Rustom S Pavar, MODERN MARKETING MANAGEMENT Seventh Edition, Universal Book Stall, New Delhi. William I.Stanton, Michel I. Etzel, Bruck I.Walker. FUNDAMENTALS OF MARKETING, Mc.Graw-Hill International.
PROJECT WORK QUESTIONNAIRE
1. Name of the Shop: 2. Area situated (a) City (b) Town (c) Village
3. Number of customers visiting your shop (per day) (a) <=25 (b) <=50 (c) <=75 (d) above100
4. Do you keep the stock of “Nimble Pharmaceuticals” Yes / No If No 5. Do you want to keep the stock of “Nimble Pharmaceuticals” Yes / No If No 6. Reason for not keeping the stock of “Nimble Pharmaceuticals” products 7. Your opinion about “Nimble Pharmaceuticals” (a) Very good (b) Good (c) Satisfactory (d) Bad
8. If there any complaints from customers regarding “Nimble Pharmaceuticals” Yes / No If yes 9. Relating to (a) Quality (b) Price (c) Package (d) Non-availability (e) Any other
10. Do you want any supportive activities from the company? If yes
11. What kind of activities you want ? (a) Fast transportation (b) High margin (c) More credit time
(d) More quality (e) Any other 12. If you are keeping the stock of the company other than the “Nimble Pharmaceuticals” company what are their features influence you (a) More margin (d) Product quality 13. Is salesman visiting you? Yes / No If yes 14. Frequency of sales man visiting you (a) Week (b) 15 days (c) 1 Month (d) More than 1 Month (b) Fast transportation (e) Any other (c) Brand name
15. How frequently do you need salesman? (a) Week (b) 15 days (c) 1 Month (d) More than 1 Month
16. Do you face any problems regarding distribution? Yes / No
If Yes 17. Can you specify them? (a) Attitude of salesman (b) Slow distribution (c) Company don’t maintain full range (d) Any other 18. Does the company respond to you complaints? Yes / No 19. If you are asked to suggest medicine as a remedy which company products do you suggest? 20. Your valuable idea and suggestions about the “Nimble Pharmaceuticals”
QUESTION NO.1
The Number of Retailers keeping the stock of “Nimble Pharmaceutical Products”
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 67 33
PERCENTAGE (100) 67 33
During the survey the questions were directly asked to the retailers. Among (100) 67% are keeping the stock of “Nimble Pharmaceutical Products” and remaining 33% are not keeping the stock of “Nimble Pharmaceutical Products”.
QUESTION NO.2 The number of retailers those who are interested (or) not interested to keep the stock of Nimble Products.
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 62 38
PERCENTAGE (100) 62 38
The above question asked to retailer those who are not having the Nimble Pharmaceutical Product stock. And among them 62% of the retailers said that they want
to keep the stock of “Nimble Pharmaceutical Products” and 38% of retailers they don’t want to keep the stock of “Nimble Pharmaceutical Products”.
QUESTION NO.3 Reasons for not keeping the stock of “Nimble Pharmaceutical Products”. TABLE OF REPRESENTATION PERTICULARS Margin Quality Price Packing Distribution RETAILERS 28 6 19 10 37 PERCENTAGE (100) 28 6 19 10 37
The Retailers response, when the above question is asked, they were not satisfied, because of the above reason 28% of them said that less margin and 6% of them said less quality and 19% of them said high price and 10% of them said that bad packing and 37% of them said that slow distribution.
QUESTION NO.4 Retailer’s option about “Nimble Pharmaceutical Products” TABLE OF REPRESENTATION PERTICULARS Very good RETAILERS 48 PERCENTAGE (100) 48
Good Average (or) Satisfy Bad
29 17 6
29 17 6
The above table shows the different opinions of retailers about Nimble Pharmaceutical products. According survey 48% of them said that the products & sales are very good and 29% said good and 17% said satisfactory and 6% said bad.
QUESTION NO.5
Number of Retailers receiving complaints from customer regarding the “Nimble Pharmaceutical Products”
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 32 68
PERCENTAGE (100) 32 68
The above table shows that among 100 members 32% and receiving the complaints from customers about Nimble Pharmaceutical Products and 68% of them were not receiving any complaints (or) problems.
QUESTION NO.6
Retailers receiving complaints from customers regarding to “Nimble
Pharmaceutical Products”
TABLE OF REPRESENTATION
PERTICULARS Quality Price
RETAILERS 9 48
PERCENTAGE (100) 9 48
Packing Any other
38 5
38 5
Those who having the “Nimble Pharmaceutical Products” stock they are facing complaints from customers 9% of said retailing to quality. 48% said relating to price, 38% said relating to packing and 5% said they are facing other than above said problem.
QUESTION NO.7
The Number of retailers expecting supportive activities from the company?
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 83 17
PERCENTAGE (100) 83 17
Among the 100% of retailers 83% of them expecting the supportive activities from the company and only 17% of them are not expecting any supportive activities.
QUESTION NO.8
Different kind of supportive activities offered by Retailers.
TABLE OF REPRESENTATION
PERTICULARS Fast transport High Margin More Credit time More quality
RETAILERS 19 32 41 8
PERCENTAGE (100) 19 32 41 8
According to survey, 19% of them wanted fast transport, 32% of them wanted more margin 41% of them wanted more credit time and 8% of them wanted more quality.
QUESTION NO.9
The factors of other company which influence the retailer to keep the stock other than the “Nimble Pharmaceutical Products”.
TABLE OF REPRESENTATION
PERTICULARS More Margin Fast Transport Brand Name Product Quality Any other
RETAILERS 13 23 36 21 7
PERCENTAGE (100) 13 23 36 21 7
According to survey among 100% respondents 13% are influenced by more margin, 23% of them are influenced by fast transport. 36% are influence by brand name, 21% are influenced by product quality and 7% are influenced by other than above facts.
QUESTION NO.10
Salesman frequently visits by the Retailers.
TABLE OF REPRESENTATION
PERTICULARS Weekly 15 Days 1 Month Maintained 1 Month
RETAILERS 73 22 5 0
PERCENTAGE (100) 73 22 5 --
According to survey 73% of retailers visit sales-man in one week and 22% of retailers visit sales-man in 15 days and 5% of retailers visit sales-man in 1 month.
QUESTION NO.11
The number of Retailers faced problems regarding distribution network of “Nimble Pharmaceutical Products”.
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 43 57
PERCENTAGE (100) 43 57
The above table shows that among 100%, 43% of retailers faced problems regarding distribution and 57% are not facing any problems regarding distribution.
QUESTION NO.12
Specification of problems faced by Retailers.
TABLE OF REPRESENTATION
PERTICULARS Attitude of Salesman Slow Distribution Didn’t Maintain full Range Any other
RETAILERS 55 10 18 17
PERCENTAGE (100) 55 10 18 17
According to the survey 55%, said that they facing problem with the attitude of salesman 10% and that they were facing the problems as slow distribution, 18% said that company do not maintain full range and 17% have other problems.
QUESTION NO.13
Does the company respond to your complaint?
TABLE OF REPRESENTATION
PERTICULARS YES NO
RETAILERS 83 17
PERCENTAGE (100) 83 17
According to survey the question is asked to retailers, those who are having the stock as Nimble Pharmaceutical Products, 83% respond to their complaints and 17% said the company does not respond to the complaints.
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