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Comparative Study of Financial Viability of Fresh Products Distribution for Home Delivery Segment

Essay by   •  August 10, 2016  •  Coursework  •  475 Words (2 Pages)  •  1,254 Views

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Executive Summary

Title

Comparative Study of Financial Viability Of Fresh Products Distribution For Home Delivery Segment  

Organization

Gujarat Co-operative Milk Marketing Federation

Reporting Officer

Mr. Sanjeev Kapoor

Faculty Guide

Prof. Vivek Pandey

Participant’s Name

Smeet Chaklasia (P36068)

Objective of the study: To provide comparative study of financial viability of ADA (Area Delivery Agent) appointed exclusively for Home Delivery only in all three cities. Identify a location in Pune for successful implementation of the same and based on the analysis; suggest a model to achieve sales growth through home delivery.

Scope of the study: The scope of the study is limited to Hyderabad, Mumbai and Pune. Understanding market situation, distribution channels and different models was to be done in all three cities but the implementation of the suggested model was to be done in Pune only.

Research methodology: The research design for the study was exploratory. Identification of appropriate location for implementation was done based on judgmental sampling. Structured interviews with the ADAs and agents and unstructured interviews with the retailers and home delivery boys were done and their selection was done using judgmental sampling. Survey of consumers was done where they were selected through convenience sampling.

Observations and findings: In Mumbai, Amul is the market leader and it seems no problem there. In Hyderabad, Amul began its operations just 1.5 years ago still it has captured 1.45 lakh litres sale per day and stands third in the market. In Pune, Amul has been launched long ago and stands third after Gokul and Chitle. Both cities attract large population from all over the country thus creating demand for Amul which is the most popular brand in India. But the local people still prefer their local brands like Vijaya and Heritage in Hyderabad and Gokul, Chitle, Katraj in Pune. All the areas in both the cities are covered through home delivery, be it from distributors or retailers or home delivery agents, thus home delivery becomes a good medium to increase sale in these cities. Receiving milk on time is the main concern for consumers while receiving payment on time is main concern for the delivery agency.

Recommendations: The local population who has not been exposed to Amul yet should be targeted. Home delivery through the ADAs is the best option but if not possible then the home delivery agents can be convinced to sell Amul. Compensation for the salary of home delivery boys until the sale reaches sufficient volume can be provided. Opening new APOs (Amul Preferred Outlets) near big societies or in townships is another alternative to this. Perception that Amul milk comes from Gujarat and thus is not fresh should be cleared through advertisements. Although multi-branded sellers try to sell brands with more margin but even they are forced to sell Amul if the customers demand and so pull strategy seems the best strategy. Proper marketing and promotional strategies in the area can increase this pull.

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