Post on 12-Sep-2014
EXECTIVE SUMMARY
TITLE OF THE PROJECT:”STUDY ON DISTRIBUTION STRATEGY OF
DIAMOND PLASTER PVT.AND IMPACT ON DISTRIBUTION CHANNEL AT
NAGPUR DISTRICT”
PROJECT GUIDE:-Mr.GAJENDRA M. DEKATE (RM)
FACULTY GUIDE:-Mrs. PRAGATI LAMBA
For the partial fulfillment MBA (MM) “GHRIET” I undertook this project with Diamond
plaster pvt. Ltd. Jaipur. My project topic is “study on distribution strategy of diamond
plaster pvt. Ltd. and impact on distribution channel at Nagpur district” For the successful
completion of my project I had visited distributors and dealers to collect data and
information related with the distribution strategy and channel.
On the basis of data collected I observed that Diamond wall putty has good market share
i.e30%.My job was to increase the sales through direct marketing.
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INTRODUCTION
DISTRIBUTION STRATEGY
Distribution is a word, which is used in different ways, in different contexts. When it is
used to refer to the whole process of selling and moving goods to customers, it can be taken to
refer to storage (warehousing) and movement of goods from the point of value addition to that of
delivery to the ultimate consumer. Marketing involves a complex series of relationships and
interactions among the different divisions of an organization. Distribution shows us how this
entire process can be managed so as to increase the efficiency of the organization. It is a
manufacturer's relationship with his suppliers that determine the field in which he has a
competitive edge, over his rivals, and the benefits customer can reap from his company.
Distribution covers a range of operations and activities depending on this relationship. It not only
involves the co-ordination of supply to the final consumers, but also movement of a product
within and outside the organization.
DEFINITION
1) The structure of intra company organization units and extra company
agents and dealers, wholesalers and retailers, through which a commodity, product or service is
marketed.
American Marketing Association
2) channel is a set of independent organizations involved in the process of
making a product or service available for use of consumption.
According to Philip kotler
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DISTRIBUTION CHANNEL OF DIAMOND PLASTER :-
DISTRIBUTORS
DEALERS
WHOLESALERS
RETAILERS
CUSTOMERS
MANUFACTURE
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Diamond plaster use simple distribution channel for distribute the products and with the help of
that process possible to achieved good satisfaction level of distribution. Because this distribution
channel provide more profit and helps to do good way of distribution work. there are no of links
are involves in there distribution channel and Avery link are achieved good profit. Comparing to
others company distribution channels and strategy diamond plaster provide better services.
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OBJECTIVE OF MY STUDY
Following are the main objective to study about the distribution strategy and channel.
1) Identifying how many distributors sells the wall putty product in market.
2) How to reduce secondary distribution channel.
3) How many types of brand wall putty available in market and according to that which
Distributor distribute which brand.
4) Which schemes are helpfully to distributors for making better market condition?
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LIMITATION.
1) Time was limited for market research.
2) Also given limited area for market research.
3) Dealers do not have sufficient time for discussing about the wall putty product.
4) Distributors are limited in Nagpur district.
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RESEARCH METHODOLOGY
1. MEANING OF RESEARCH:-
Research in common sense .refer to search for knowledge .research is a scientific and systematic
search for particle or information on his a specific topic in fact . Research is an act of scientific
infestation.
2. DEFINITION OF RESEARCH:-
1) According to Advance Learners Dictionary “Research is a careful investigation or inquiry
especially through search for new facts in any branch of knowledge.”
2) According to Redman “Research is a systematized efforts to gain new knowledge”
MARKETING RESEARCH
Marketing research is the systematic gathering, recording and analysis of data for
different products and services.
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MARKETING RESEARCH PROCESS
1) Define the problem
2) How to collect the data and analysis it.
3) Decide the time frame.
4) Check for errors.
5) Write the final report.
MARKETING RESEARCH TECHNIQUES
Advertising research
Buyer decision research
Feedback from distributors
Test marketing etc.
All these forms of marketing research can be classified as either problem identification
research or as problem solving research.
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MARKET SHARE
Market share of company totally depend upon the sales of wall putty product.
According to total wall putty sales of market possible to calculate market share of
product.
FOR EXAMPLE—
Market share is the portion of a particular product in a given region that are controlled
by a company. For example:--
There are 1000 wall putty products sold in a country and company “A” sales 500 of
them, then Company “A” has a got 50% market share.
In Diamond Plasters Private Limited I found the market share on the basis of units sold
in Nagpur region of “diamond ” Wall putty, with two competitors namely “ JK ” and “
BIRLA ”.
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RESEARCH METHODOLOGY
DATA COLLECTION
Different methods of collecting data
There are two types of collecting data
1. PRIMARY DATA:-
2. SECONDARY DATA:-
1. PRIMARY DATA:-
The primary data are those which are collected as fresh and the first time
and it is original in character. With the help of the questionnaire method and interview method , i
raised questions to dealers and customers I got more information about market.
I also got feedback from dealers, distributors, and customers.
1) Sample size 40
2) Population of interests for my research were all the customer in the district Nagpur
2. SECONDARY DATA:-
The secondary data on the other hand are those which have
already been collected by some one-else and which have already in passed through the
statistical method. And with the help of using magazine, news pepper and internet also
collected the data.
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INTRODUCTION
DIAMOND PLASTER PVT.LTD. is a leading manufacturer & exporters of Building
Products & Processed Minerals. Its Established in the year 1997. Its an ISO9001 Company. The
Company has been well known in Domestic market for its quality products especially Wall
Putty, Plaster of Paris and Construction Chemicals. The Company is also specialized in
Processed Minerals.
DIAMOND PLASTER PVT. LTD. is one of the frontrunners in delivering
processed minerals. We have been known as one of the leading manufacturers and suppliers in
the domestic market for the best quality of mineral powders. We are backed by a team with
exceptional skill sets and in-depth knowledge about the requirements of the industry. Their
expertise in the concerned area has enabled us to customize the products as per the client
requirements. One of our prime concern areas is to derive client satisfaction through all our
endeavors. We ensure our clients to get the best from our products. We also offer them technical
support on how to use our products in their respective industry for best results.
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OUR PRODUCTS
I. Building Products
II. Processed Minerals
III. Plaster of Paris (POP)
IV. Cement Water Proofing Compound Wall Putty
V. “Deco Touch “ Exterior Cement Paint
We offer processed minerals that have wide use in assortment of industries. Their
physical and chemical properties help them to find useful in myriad of products and
services. Our product range includes:
Talcum Powder
Calcite Powder
Red Iron Oxides
Mica Powder
China Clay
Silica Powder
Hydrated powder
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SELLING CATEGORIES ]
- Pigment >> Chemicals
- Other Non-Metallic Minerals & Products >> Minerals & Metallurgy
- Other Construction & Real Estate >> Construction & Real Estate
[ KEYWORD ]
WALL PUTTY , CEMENT PAINTS , MINERALS , PLASTER OF PARIS
Registration Date 2008/08/17 (Year/Month/Date)
Buyer / Seller in EC21 Seller
Business Type Manufacturer
Year established 1997
Employees total 11 – 50
Annual revenue USD 100,000 - 500,000
CONTACT INFORMATION
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Company Diamond Waterproof Compound Pvt. Ltd.
Address3399, Mahendra Park Chowk, Rani Bagh, Pitampura, New
Delhi New Delhi 110034 India
Phone 91 - 11 – 64592934
Homepage www.diamondwaterproof.org
Contact Rajesh Mishra / General Manager
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PLANT LOCATION
We are located on G1-557, MIA Industrial Area,
Alwar (Rajasthan). We have a state-of-the-art
infrastructure that spreads across an area of 4000
square yards. All the required equipment and
machinery essential in the processing of stones to
grind to different particle size are working in the
premise. Some of the machinery those we have
installed in our works are :
Diamond plaster Ltd. is one of the frontrunners in delivering processed minerals. We have been
known as one of the leading manufacturers and suppliers in the domestic market for the best
quality of mineral powders. We are backed by a team with exceptional skill sets and in-depth
knowledge about the requirements of the industry. Their expertise in the concerned area has
enabled us to customize the products as per the client requirements. One of our prime concern
areas is to derive client satisfaction through all our endeavors. We ensure our clients to get the
best from our products. We also offer them technical support on how to use our products in their
respective industry for best results.
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Diamond Plaster is offers you our wide range of material of Plaster of Paris
(P.O.P) and Wall Putty. They are purified scientifically by an advanced process. All is done so
as to achieve consistent quality. Our company is considered as a well reckoned manufacturer,
exporter, distributor who offer highly reliable material of Plaster of Paris (P.O.P) and Wall
Putty, Paint. Hence, we wholesale our exclusive range as per the stated requirements of the
customers.
We have a state of the art infrastructure, which is well backed up by
technologically advanced tools and machinery. Our manufacturing unit is ideal for producing
qualitative products that to on bulk and without compromising on the quality of our products.
Hi tech machinery employed by us ensures the superior quality of our products.
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QUALITY ASSURANCE
Industries We Cater To :
Our multitude of products finds their
application in myriad of industries some of
which include :
Paper industry
Ceramic industry
Paint industry
PVC/Plastic industry
Rubber industry
Leather industry
Pharmaceutical industry
Master batches industry
Cosmetic/soap & detergent industry
We have fully equipped lab with trained, highly professional staff for testing raw material before
its use as well as finish products before dispatch. As a client centric organization we build
rapport with our clients through our unwavering commitment towards quality. It is imperative to
incorporate quality in the final products by different means. To provide quality products to
clients we keep stringent checks right from the procurement of raw materials to finish products.
Our customized services ensure clients to get products as per their specifications. Some of the
parameters used during the manufacture process are:
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• Brightness
• Particle Size
• Chemical Composition
Furthermore, we offer grading of our multitude of products. It is essential to classify products
according to their specific applications in various industries. This also describes the purity levels,
physical and chemical value of products.
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TECHNICAL SUPPORT
We provide technical support also to achieve the best of our product and how can improve the
final product with use of our product.
We have team of trained and experienced people who take care of testing of raw materials along
with Finished products & keep proper records of each lots.
WAREHOUSING & PACKAGING:
We have a capacious warehouse for the effective storage of all our products. The spacious
warehouse is essential in storing products to fulfill the growing and urgent needs of clients. It is
instrumental in storing all the processed products and raw materials for incidental demand of the
market.
Packaging:
Loose Paper /Plastic Bags (5kgs/20kgs/25kgs/50kgs)
Jumbo Plastic bags (600kgs to 1300kgs. Packaging
varies from product to product
Palletized Plastic or Paper Bags (20kgs/25gs/50kgs)
Quantity per 20’ FCL : 15 MT to 26MT depending on the density of products
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PRODUCT PROFILE
DIAMOND GOLD WALL PUTTY
PRODUCT INFORMATION:
Diamond Gold White Wall Putty is white cement based. It provides a protective base for
paints. Its superior water resisting properties prevent the paint from flaking even if the wall
surface is damp or wet. It’s used to fill fine pores of wall and ceiling in order to get smooth
finish.
Diamond Gold White Cement Putty has better water resistance, adhesive strength &
Durability. Being Cement based it has better compatibility with the base plaster it forms a
durable base for paints. It can be used for exterior as well as interior walls. It enhances the
life of Paints.
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DIAMOND GOLD WATER PROOF POWDER
It’s used for waterproofing of concrete & sand cement mortar
As an effective pore filler, it helps to fill capillaries & pores to prevent water seepage
Makes the concrete mix cohesive & denser
Reduces shrinkage cracks in mortars & concrete
Economical in use
Does not affect the setting time & strength
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OTHER PRODUCTS
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DATA INTERPRITATION
1) DO YOU SALE WALL PUTTY?
Category 1 Category 2012345678
7
3yesno
OPTION NO. OF RESPONDENTS PERCENTAGES
YES 7 70%
NO 3 30%
TOTAL 10 100%
Interpretation
70 % of distributor’s sales the wall putty product and 30% distributors not
distribute the wall putty product in market.
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2) WHICH BRAND YOU PREFER MORE?
4
3
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PREFER
BIRLA WALL PUTTYJK WALL PUTTYDIAMOND GOLDOTHERS
OPTION NO. OF RESPONDENTS PERCENTAGESBIRLA 4 40%
JK 3 30%
DIAMONDGOLD 2 20%
OTHERS 1 10%
TOTAL 10 100%
InterpretationAccording to distributors feedback distributor parches maximum Birla wall putty
40%. JK wall putty also choice of distributors 30%.diamond plaster demand in
market 20%. Other company product parches distributor 10%.
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3) WHERE IS YOUR WAREHOSE?
Category 1 Category 20
1
2
3
4
5
6
4
6 OUTSIDE OF CITYINSIDE OF CITY
OPTION NO. OF RESPONDENTS PERCENTAGESINSIDEOF CITY 4 40%
OUT SIDE OF CITY 6 60%
TOTAL 10 100%
Inside of city and outside of city this two places of storing goods and according to
distributors feedback 60% distributors store product outside of city and 40%
4) WHICH BRAND GIVE MORE PROFIT MARGIN?
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Category 1 Category 2 Category 3 category40
0.5
1
1.5
2
2.5
3
3.5
4
4.5
1.5 1.5
4
3
BIRLA WALL PUTTYJK WALL PUTTYDIAMOND GOLDOTHERS
OPTION NO. OF RESPONDENTS PERCENTAGESBIRLA 1.5 15%
JK 1.5 15%
DIAMOND GOLD 4 40%
OTHERS 3 30%
TOTAL 10 100%
5) ARE YOU SATISFIED WITH DISTRIBUTIONS STRATEGY OFFERED BY
DIAMOND WALL PUTTY?
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Category 1Category 2
Category 3
00.5
11.5
22.5
33.5
4
YES
NO
OTHERS
4 4
2
YESNOOTHERS
OPTION NO. OF RESPONDENTS PERCENTAGESYES 4 40%
NO 4 40%
OTHERS 2 20%
TOTAL 10 100%
6) DO YOU SATISFIED DIRECT DEPO SEAVICES?
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4
6
SATISFACTION
YESNO
OPTION NO. OF RESPONDENTS PERCENTAGESYES 4 40%
NO 6 60%
TOTAL 10 100%
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7) WHICH SCHEME IS PROFITABLE FOR DEALERS?
Category 1 Category 2 Category 30
1
2
3
4
5
6
3
6
1
TOKENDISCOUNTOTHERS
OPTION NO. OF RESPONDENTS PERCENTAGESTOKEN 3 30%
DISCOUNT 6 60%
OTHERS 1 10%
TOTAL 10 100%
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8) ARE YOU SATISFIED WITH DISTRIBUTION SECONDARY CHANNEL
OFFERED BY DIAMOND WALL PUTTY?
Category 1 Category 20
1
2
3
4
5
6
7
6
4
YESNO
OPTION NO. OF RESPONDENTS PERCENTAGESYES 6 60%
NO 4 40%
TOTAL 10 100%
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9 )WHICH COMPANY DISTRIBUTION CHANNEL YOU LIKE MORE?
Category 1 Category 2 Category 3 Category 40
0.5
1
1.5
2
2.5
3
3.5
4
4.5
3
2
4
1
BIRLAJKDIAMONDOTHERS
OPTION NO. OF RESPONDENTS PERCENTAGESBIRLA 3 30%
JK 3 20%
DIAMONDGOLD 4 40%
OTHERS 1 10%
TOTAL 10 100%
10) ARE YOU SATISFIED WITH DIAMOND WALL PUTTY SERVICES?
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Category 1 Category 20
1
2
3
4
5
6
7
7
3 YESNO
OPTION NO. OF RESPONDENTS PERCENTAGESYES 7 70%
NO 3 30%
TOTAL 10 100%
FINDINGS
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1. I find out in market there are ten types of wall putty product available and
maximum distributor distribute the wall putty in market.
2. Comparing others competitor distribution strategy was different.
3. Diamond gold Transportation cost was more than other wall putty product.
4. I also find out Primary distribution cost is less than secondary distribution cost.
5. There are No. Of links involving in distribution channel and that is important
reasoned to diamond gold wall putty price is more.
6. Company take more time to primary delivery for product and according to that
distributors are not satisfied with primary distribution channel.
SUGGESTIONS
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1. Diamond plasters have to provide good distribution strategy and channel
comparing to others.
2. Companies have to reduce link between distribution channel process.
3. And other wall putty company already have a depot in one district according to
that company also do for storing the product and with the help of that process also
possible to reduce wall putty product price.
4. Company have to change their distribution strategy because this distribution
strategy required more cost.
5. If company give fast services to customer possible to make better relationship
with them.
CONCLUSION
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Follwing are the conclusion that the researcher found after the survey.
Company has good distribution channel and strategy also.
Diamond plaster provide totally different distribution strategy for distribute product in
market.
In Nagpur diamond got good position because distribution services are very good in
Nagpur.
BIBLIOGRAPHYBooks:
Marketing Management – Philip Kotler, Kevin Lane Keller.
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Websites:
www.diamondplaster.com
www.sales@diamondplaster.com
www.diamondwaterproof.org
WWW.google.com
ANNEXURE
1) Do you sell wall putty?
Yes No
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2) Which brand you prefer more?
Birla JK Diamond Gold Other
3) Where is your warehouse?
Inside of city Outside of city
4) Which brand give more profit margin?
Birla JK Diamond Gold Other
5) Are you satisfied with distributions strategy offered by diamond wall
putty?
Yes No
6) Do you like direct depot services?
Yes No
7) Which scheme is profitable for dealers?
Token Discount Other
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8) Are you satisfied with secondary distribution channel offered by
diamond wall putty?
Yes No
9) Which company distribution channel you like more?
Birla JK Diamond Gold Other
10) Do you like diamond wall putty services?
Yes N No
______________________________________________________________________________
_____________________________________________
Name: ________________
Age: ___ years
Sex: male/female
Contact no.: ___________
Signature: __________
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