Distribution management

MMM – III presented by – Yogesh Gavankar Upendra more Pravesh mishra Sameer Karekar Rajesh Naik Shailesh Nimbalkar Rahul Yelkar

Warana Dairy.

Plant & Head office at Kolhapur, Maharashtra. Branch offices at Navi Mumbai,Nasik,Solapur. Co-operative movement started and developed

since 1967. Company has more than 180 village network

for procurement. First company in Maharashtra started

production of Milk in polythene pouches. Now producing wide range of Dairy products

Paneer,shrikhand,Ghee,SMP,UHT,Butter,Curd, Buttermilk,Fruit Juice, Cheese.

Introduction

Currently handling 6 hundred thousand liters of Milk per day.

Whole milk, Cow milk, Standard milk, Toned milk, double toned milk

Due to regulation on procurement company incorporated sister company WARANA AGRO PVT LTD, which started procurement in Nasik, Karnataka, MP .

Continue-

Sugar factory. Dairy. Bank. College. Paper mill. Hospital Military school. Wagpcos

Warana group

Gokul – Liquid milk, SMP, Butter. Amul – Liquid milk, Curd, Ghee, Flavour milk,

Paneer, shrikhand, Cheese, Butter, smp, UHT Mother Dairy – Liquid milk, Curd, Butter, UHT Chitale – shrikhand , curd Nestle – Curd, smp, Yoghurt, UHT Britannia – Curd,cheese Pepsico & Dabour – Tetrapak Juices. Danone – Curd, Yoghurt Mahanand – Liquid milk , curd

Competitors

Branded Liquid milk sales appr. 30 lacs ltrs per day in Mumbai,Navi mumbai,Thane.

Unbranded milk sales appr.5 lacs ltrs per day

Most complaints from customers due to Adulteration

Market condition

Awareness about Clean milk production Positioning on Calcium source, Vitamins

A,D,E,K . Per capita consumption is only 200 gms

which is very low as compare to developed countries.

HACCP

Growth Drivers

Ex dock - To cover Retail outlets,agents.

Authorized dealer - To cover remote areas

Booths – counter sale. Navi Mumbai, Thane

Exclusive outlets – Vashi, Belapur, Panvel, Nerul, Kiosk at Vashi station.

Inclusive distribution system

Channel Structure for B to C

Exhibition Festival discounts Kolhapur Melava at Dadar Credit.

Support to channel

Daily sales report. Visits by company sales person to check

stock , availability of products in retail outlet

Storage conditions Fresh stock availability

Evaluation of channel

Maintain long term relationship by frequent visits

Ensuring supply at Right time Make sure products handle with care during

transport ,loading ,unloading. Demand forecasting Solve conflicts of channel members.

Role of Marketing Manager

Institutional sale by company sales person eg. Defence , Hospitality services.

Distributers covers canteens, catereres,events.

B to B.

Between channels -Apart from Territory restrictions channel members moves to others channel members Territory so retailer gets price negotiation advantage.

Between channels & company –Schemes given by competitor’s to their channels

Conflicts of Channels

Contract with two transportation associates.

Company vehicles. (AD)

Distributers vehicles. (ED)

Logistics. ( road transport)

Depending on volume of products per route TATA 407 , TATA 709 , TATA 1109 , TATA ace Mahindra pick up Eicher

Logistic system

Cold storage at Kolhapur, Nasik, Navi

Mumbai.

Warehouse

Letter of Appreciation. Discount on Products. Coupons. Gifts on festivals. Stock option. Awards.

Motivation

Distributor’s margin -4 to 5 %

Retailer’s margin- 8 to 12 %

Retailer/ Distributor Margins

Ex.Dock Distributer – 1000 ltrs/day within year

Authorised Dealer - 200 ltrs/day within month

Sales Target

Ex Dock – 3X security deposit against average daily sales PDC Credit facilities depends on past Banking record

Authorised dealers – Security deposit against sales, Cheque or cash against delivery

Terms and conditions

Products Not accepted at time of delivery penalized for processing charge.

No damaged accepted once products delivered. No replacement given when products damaged

due to negligence of retailer, overstocking. 100% replacement given only when products

USE BY DATE is expired. 50% replacement given when products

damaged in transportation it depends on report submitted by sales person.

Terms and conditions

Maharashtra district wise

Navi Mumbai sector wise

Mumbai – Geographic◦ Western

Vasai to Virar Miraroad to Bhayandar Borivali to Vile parle Santacruze to Dadar

◦ Central Sion to Colaba Kurla to Mankhurd

Dealer Territories (Geographic)

Influence by Top management

Approach from existing distributors of Competitors, FMCG etc.

Approach by company sales person

Selection of channel members

Survey by sale person.Criteria -

a. Financial backgroundb. Own shopc. Cold storage facilityd. Previous experiencee. Vehicles

Selection procedure of channel members

Report submission to Marketing manager.

Marketing manager’s visit.

Report to MD.

Board meeting.

Resolution

Cont…..

Now most of products of company are transported through insulated vehicle

a) Company insist distributors to invest in insulated vehicle

b) Twice a day (milk) and thrice a week delivery (products)

c) At least two 500 ltrs capacity freeze for storage

d) Company hire cold storages at festivals to store products.

Physical Distribution

Refrigerated vehicles.

Advantage -a) Temperature control .b) Act as storage during breakdown.c) Longer self life.

Disadvantages- cost of transport will increase .

Emerging Distribution Techniques

60 micron food grade polythene to avoid leakage.

Double color to avoid tampering

Information about Ingredients, preservatives, Fat, Protein, Batch no., Use by Date.

Role of Packaging

Mostly at time of delivery

On Telephone

Order form

Order Processing.

THANK YOU.