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A STUDY OF DISTRIBUTION CHANNEL OF BATTERIES FOR EXIDE
INDUSTRIES LIMITED
BY
S. CHANDRAN
(REG NO: 41502631021)
Of
S.R.M. ENGINEERING COLLEGE
S.R.M. INSTITUTE OF MANAGEMENT STUDIES
S.R.M. Nagar, Kattankulathur, Kancheepuram Dist., 603203
A PROJECT REPORT
Submitted to theFACULTY OF MECHANICAL ENGINEERING
In partial fulfillment of the requirements
For the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION
MAY 2004
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Certified that this project report titled A STUDY OF DISTRIBUTION
CHANNEL OF BATTERIES FOR EXIDE INDUSTRIES LIMITED is the
bonafide work of Mr. S. CHANDRAN who carried out the research under my
supervision. Certified further, that to the best of my knowledge the work reported herein
does not form part of any other project report or dissertation on the basis of which a
degree or award was conferred on an earlier occasion on this or any other candidate.
Guide HOD
ABSTRACT
Distribution Channel can be defined as The marketing channel performs the
work of moving goods from producers to consumers. It overcomes the time, place and
possession gaps that separate goods and services from those who need of want them. A
distribution system is a key external resource. Normally it takes years to build, and it is
not easily changed. A distribution channel consists of the set of people and firms
involved in the flow of title to a product as it moves from producer to ultimate consumer
or business user.
This research title A study of Distribution Channel of Batteries for Exide
Industries Limited deals with how the distribution process is going on between the
Manufacturer, Distributors and Dealers. It also deals with the analysis of various
parameters like,
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Sales Turnover per month
Consumers Response on batteries
Brand preference
Reasons for the brand preference
Companies dealt by dealers
Buyers preference towards purchase of batteries
Attributes preferred by the consumers
Credit period from the supplier
Type of batteries having more sales
Retailer preference of sales promotional activity and
Media prefer for the advertisement.
A sample size of 100 was chosen from a total of 400 retailers in Chennai City.
Primary data is collected from the dealers or distributors using the Questionnaire. A pilot
study was done with a sample size of 10 Questionnaire. The sampling method that is
used for the research was Systematic Random Sampling. The Statistics tool, which is
used for the research, are Percentage Method, Weighted Average Method and Chi-Square
Test. Using this Methodology and Statistical tools the following findings are obtained.
The findings are as follows:
Most of the dealers in the survey fall under the turnover of 50,000
1,00,000 with 44%.
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The consumer response for batteries is good for the 23% of the
respondents and satisfies for the 77% of the respondents, based on dealers
opinion
The Customer preference for the Exide Battery is 56% based on dealers
opinion.
68% of the dealers are dealing Exide batteries.
The reason for recommending Exide is Brand name for 42% of the
respondents and Product quality for the 31% of the respondents.
Most of the dealers are dealing other company battery because the cost of
Exide is very high when comparing to other companies.
According to the Retailers opinion Exide has got Rank 1, followed by
Amco, Amararaja, Panasonic and Prestolite based on Weighted Average
points which is based on some attributes.
ACKNOWLEDGEMENT
I have immense pleasure in thanking Miss. Vanitha, Lecturer, SRM Engineering
College for his guidance in carrying out this project.
I offer my deep felt gratitude to Mr. R. Venkataramani, Principal, SRM
Engineering College for his support in carrying out this project.
I offer my deep felt gratitude to Dr. Jayashree Suresh, Dean, SRM Institute of
Management Studies, for his valuable guidance and support.
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It is with deep sense of gratitude that I express my thanks to Mr. Thyagarajan,
HR Manager, Exide Industries, Chennai for his generosity in allowing me to do my
project, for his interest and for the encouragement rendered.
I would like to thank Mr. Shajan Mathew, Area Manager and Mr. ArnabDas
Paul, Assistant Sales Manager, Exide Industries, Chennai for this incisive and objective
guidance for entire project. I wish to thank all executives and staff of the company for
their support to the project.
I wish to thank all the faculty and staff of Department of Management Studies for
their support in completion of the Project Work.
S. CHANDRAN
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TABLE OF CONTENTS
S.NO TITLEPAGE
NO
CHAPTER 1
1.1 INTRODUCTION 1
1.2 INDUSTRY PROFILE 2
1.3 COMPANY PROFILE 3
1.4 PRODUCT PROFILE 4
1.4.1 TYPE OF EXIDE INDUSTRIAL BATTERIES 4
1.4.2 ADVANTAGES OF DIFFERENT KINDS OF PRODUCT 4
1.4.3 TYPE OF AUTOMOTIVE BATTERIES 6
CHAPTER 2
2.1 PROJECT PERSPECTIVE 7
2.1.1 CHANNEL OF DISTRIBUTION 7
2.1.2 FUNCTIONS OF DISTRIBUTION CHANNEL 8
2.1.3 FUNCTIONS OF MIDDLE MEN 8
2.2 OBJECTIVE OF THE STUDY 102.2.1 OBJECTIVE 10
2.2.2 SCOPE OF THE STUDY 10
2.2.3 LIMITATIONS OF THE STUDY 11
2.3 METHODOLOGY 12
2.3.1 RESEARCH DESIGN 12
2.3.2 QUESTIONNAIRE DESIGN 13
2.3.3 DATA COLLECTION PROCEDURE 14
2.3.4 PERIOD OF STUDY 15
2.3.5 TECHNIQUES OF ANALYSIS 15
2.3.6 INSTRUMENTS OF DATA COLLECTION 18
2.3.7 SAMPLING PROCEDURE 18
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2.3.8 TOOLS USED 18
2.3.9 PILOT STUDY 19
2.4 DATA ANALYSIS AND INTERPRETATION 20
CHAPTER - 3
3.1 RESULTS 49
3.2 SUGGESTIONS AND RECOMMENDATIONS 52
3.3 CONCLUSION 54
APPENDICES 55
REFERENCES 57
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LIST OF TABLES
S.NO TITLE PAGENO
1 RESPONSE FROM CONSUMERS 20
2 SALES TURNOVER PER MONTH 22
3 BRAND PREFERENCE 24
4 COMPANIES DEALT BY DEALERS 26
5 BUYERS PREFERENCE TOWARDS PURCHASE OF
BATTERIES
28
6 DURATION OF ORDERING THE PRODUCT 30
7 ATTRIBUTES PREFERRED BY THE CONSUMERS ON EXIDE 32
8 CREDIT PERIOD FROM THE MANUFACTURER OR
DISTRIBUTOR
34
9 TYPES OF BATTERIES HAVING MORE SALES 36
10 RETAILER PREFERENCE OF SALES PROMOTIONAL
ACTIVITY
38
11 MEDIA PREFER FOR THE ADVERTISEMENT 40
12 LEVEL OF SATISFACTION OF DELIVERY PROCESS 42
13 LEVEL OF SATISFACTION OF SALES TURNOVER PER
MONTH (CHI SQUARE TABLE)
44
14 LEVEL OF SATISFACTION OF DELIVERY PROCESS (CHI-
SQUARE TABLE)
46
15 RESPONSE FROM CONSUMERS (CHI SQUARE TABLE) 47
16 RANKING THE BRAND WITH CERTAIN ATTRIBUTES
ACCORDING TO DEALERS OPINION (WEIGHTED AVERAGE
METHOD)
48
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LIST OF FIGURES
S.NO TITLE PAGENO
1 BAR DIAGRAM SHOWING THE RESPONSE FROM
CONSUMERS
21
2 BAR DIAGRAM SHOWING THE SALES TURNOVER PER
MONTH
23
3 PIE DIAGRAM SHOWING THE BRAND PREFERENCE 25
4 BAR DIAGRAM SHOWING THE COMPANIES DEALT BY
DEALERS
27
5 BAR DIAGRAM SHOWING THE BUYERS PREFERENCE
TOWARDS PURCHASE OF BATTERIES
29
6 BAR DIAGRAM SHOWING THE DURATION OF ORDERING
THE PRODUCT
31
7 BAR DIAGRAM SHOWING THE ATTRIBUTES PREFERRED BY
THE CONSUMERS ON EXIDE
33
8 BAR DIAGRAM SHOWING THE CREDIT PERIOD FROM THE
MANUFACTURER OR DISTRIBUTOR
35
9 BAR DIAGRAM SHOWING THE TYPES OF BATTERIES
HAVING MORE SALES
37
10 BAR DIAGRAM SHOWING THE RETAILER PREFERENCE OF
SALES PROMOTIONAL ACTIVITY
39
11 BAR DIAGRAM SHOWING THE MEDIA PREFER FOR THE
ADVERTISEMENT
41
12 BAR DIAGRAM SHOWING THE LEVEL OF SATISFACTION OF
DELIVERY PROCESS
43
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1.1 INTRODUCTION
Battery is the most commonly used item in the field of Automobiles, Industrial
Sectors, Power Stations, Railways, Submarines, etc. Battery plays a vital role in
supplying power where electricity could not be used. Industrial batteries are used for
UPS, Inverters, systems, power plants, Telecommunications, Motive power drives and
different Railways applications. Automotive batteries are used for vehicles for the
purpose of Horn, light, listening Music, watching picture, etc. Man could not be depend
on electricity in case of moving machines like vehicles, so in that case Battery serves to
be good alternative.
Battery plays an important role when the electricity fails. Nowadays when
electricity fails, suddenly people are switched over to the Generator to make the power
available at any time. When the person is working with the computer the power is
essential for the computer continuously, at that time they are using UPS for the regular
supply of power to the computer even electricity fails. So like this Industrial battery
plays an important role in many ways.
Though those batteries are efficiently made, there is no use if those manufactured
batteries are not properly distributed through correct channels. So let us study about the
Distribution Channel of Batteries in this Research.
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1.2 INDUSTRY PROFILE
Todays era where power is the major drive for development, Battery plays a pivotal
role towards the development. Industrial Batteries are the backbone of any system that
generates power, conditions power or processes power. Industrial batteries are used for
UPS, Inverters, systems, power plants, Telecommunications, Motive power drives and
different Railways applications. Automotive batteries are used for vehicles for the
purpose of Horn, light, listening Music, watching picture, etc. With the global thrust on
Power generations, Infrastructure development and Information technology related
developments; Lead acid battery has immense potential for growth. Presently Indian
battery industry is worth 2500 crores in Indian Rupees. The Domestic market is growing
at the rate of 20% per annum.
The Market share of Automotive Battery is 85% and the market share of
Industrial Battery is 50%. Further technological development in Lead Acid Battery
technology will cater the need of more efficient and compact battery systems, ultimately
satisfied the consumers.
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1.3 COMPANY PROFILE
Exide Industries Limited was started in the year 1947 by the name Associated
Battery Makers (Eastern) Ltd (ABMEL) at Shamnagar, West Bengal. ABMEL become a
public limited company in the year 1960. After that the second factory setup in
Chinchwad, pune. ABMEL was renamed as Chloride India Ltd in the year 1972. In 1976
R&D centre was established at Kolkata. In 1981 third factory was setup at Haldia, West
Bengal. After that Chloride India Ltd was again renamed as Chloride Industries Ltd. In
1995 Chloride Industries was renamed as Exide Industries Limited. In 1997 fourth was
setup at Hosur and Tamilnadu.
For over 74 years, Exide Industries Ltd has pioneered battery technology in India.
Formerly known as Chloride Industries Limited, the company was a part of the chloride
Group PLC UK. The leader in the packaged power technology. Exide is today Indias
largest storage battery company with global affiliations and internationally reputed
brands having nine factories strategically located all over India.
VISION:
To win our customer, stakeholders and employees by transferring Quality into a
performance oriented business, which will secure market Leadership and profitable
growth through effective fulfillment of customer Needs.
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1.4 PRODUCT PROFILE
1.4.1 TYPES OF EXIDE INDUSTRIAL BATTERIES:
EXIDE PLANTE
EXIDE TUBULAR
EXIDE VRLA
EXIDE POWERSAFE
EXIDE EL TUBULAR
EXIDE LITE
EXIDE INVAKING 1500
EXIDE HSP CLASSIC
1.4.2 ADVANTAGES OF DIFFERENT KINDS OF PRODUCT:
The TUBULAR Battery has a very robust construction and can
provide 1200 to 1500 cycles of charge and discharge before its capacity
Degrades to 80% of its rated capacity and is fit for replacement.
The TUBULAR Battery provides a life of around 10 to 12 in Power
Stations if maintained properly.
In VRLA Battery there is no topping up with water required during
lifetime.
In VRLA Battery there is no acid fume while charging the battery.
The VRLA Batteries are stackable and hence smaller floor area and
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smaller floor area and smaller battery room.
The VRLA Batteries has very good high discharge performance and
hence smaller capacity VRLA Battery can do the same job as a larger
capacity tubular battery.
The PLANTE Batteries require water topping up only once in three
Years if the battery room is not too hot. Even in higher ambience, once in
two years topping up is quite adequate.
The PLANTE cells do not lose any capacity till the end of their life.
Hence, unlike TUBULAR and VRLA Battery, 20% margin need not be added to the
required PLANTE Battery capacity. This further reduces the cost differential between
PLANTE and other batteries.
The EXIDE INVAKING 1500 has extra heavy duty plates as per
exclusive EXIDE design ensuring durability, resistance to corrosion and inbuilt margins
for high ambient temperature and vibrations.
In EXIDE POWERSAFE Battery, no topping up is required and it is
maintenance free.
In EXIDE POWERSAFE battery it enhanced performance that is it is
Computer aided grid design for high power density, excellent deep discharge recovery,
and better thermal management in the module and it is resistance to thermal runaway.
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1.4.3 TYPES OF AUTOMOTIVE BATTERIES:
EXIDE ATB
EXIDE MAX
EXIDE FREEDOM
DAGENITE
INDEX
LUCAS
DYNEX
CONREX
STANDARD FURUKAWA (SF) SONIC
These are the different types of EXIDE Automotive batteries.
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2.1 PROJECT PERSPECTIVES
2.1.1 Channel of Distribution:
A Distribution Channel consists of the set of people and firms involved in the
flow of title to a product as it moves from producer to ultimate consumer or business
user. A Marketing Channels are sets of interdependent organizations involved in the
process of making a product or service available for use or consumption. A Channel of
distribution always includes both the producer and the final customer for the product in
its present form as well as any middlemen such as retailers and wholesalers.
Definition:
Distribution Channel can be defined as the marketing channel performs the work
of moving goods from producers to consumers. It overcomes the time, place and
possession gaps that separate goods and services from those who need or want them. 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 internal resources such as
manufacturing, research, engineering and field sales personnel and facilities.
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2.1.2 Functions of Distribution Channel:
1. Distribution Channel gather information about potential and current
Customers, competitors and other actors and forces in the marketing environment.
2. They develop and disseminate persuasive communications to
Stimulate purchasing.
3. They reach agreement on price and other terms so that transfer of
Ownership or possession can be affected.
4. They acquire the funds to finance inventories at different levels in the
Marketing channel.
5. They provide for the successive storage and movement of physical
Products.
2.1.3 Functions of Middle men (Wholesalers and Retailers):
1. Many producers do not have the resources to engage themselves in
direct marketing.
2. Distributors and Dealers reduce transactions to our optimum number.
3. Distributors and Dealers are capable of eliminating discrepancies in
Quantity that is distributed. This is done by breaking the bulk that is dividing a huge
lot into small fractions.
4. The producer can concentrate on the production function leaving the marketing
problem to middlemen who specialize in the line.
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5. Selling intermediaries is to assemble the goods from many producers in such a
manner that a customer could effect purchase with ease.
6. Middlemen collect huge orders and purchase products in bulk from
the producers. This enables a manufacturer to undertake large-scale production.
7. The main function of middlemen is to provide the connection link
Between the producers and their respective markets.
2.2 OBJECTIVE AND SCOPE OF THE STUDY
2.2.1 OBJECTIVE:
v To understand the effectiveness of the present distribution.
v To find out the market share of the Exide batteries using the sales made by the
various dealers.
v To find out the Level of satisfaction of Distribution process of Exide.
v To find out the satisfied level of the customers through the preference of the
dealers.
v To find out reasons behind dealers willingness to deal with different kinds of
Batteries based on some attributes.
v To take opinions and suggestions of dealers towards the batteries.
v To provide suggestions to company regarding channel effectiveness and
expectations of dealers for the Exide batteries to improve.
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2.2.2 Scope of the Study:
The study on distribution system helps in finding at number of marketing
intermediates for taking the products to the user. The study also helps to improve the
effectiveness of present network system. The study also helps to improve the sales of the
Exide by supplying the Exide batteries to the competitors dealer also. So that Exide
Industries Limited can its position in the market.
2.2.3 Limitations of the Study:
v Findings of the study are based on the assumption for some attributes since the
respondents have not divulged correct information.
v Personal bias is the other limitations of this study.
v Market share was found through the average sales per month was disclosed
approximately by the dealers. (Since its not consistent for every month).
2.3 METHODOLOGY
The Study was conclusive and empirical in nature. The data was collected
basically by the Primary and Secondary data. The Primary data was collected by Survey
that is conducted by the use of Questionnaire. Secondary data was collected by the
Secondary Sources like the Company records, magazine and Newspapers.
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2.3.1 Research Design
Marketing research design specifies the procedure for concluding and controlling
the research project. The choice of particular research design follows for the problem.
The following are the main elements of research design.
1. Types of Data
Type of the data is exploratory which gives major emphasis is on the discovery of
ideas. From this we can find out the factors of attributed used in a purchase decision the
way consumer influenced by communication and also establishes priorities for future
research.
2. Source of Data
The primary data for the research design has been collected by meeting the
potential customers in the various retail outlets in various parts of the Chennai city.
3. Form of Data
Questionnaire, which has qualitative and quantitative data, has been used as a tool
to collect primary data.
4. Nature of Data Selection
The research study was conducted randomly at different areas of Chennai in a
stipulated period of three months.
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2.3.2 Questionnaire Design
A Questionnaire was developed to analysis the distribution network of Exide
Industries Limited. The questionnaire was constructed based on an in-depth interview
with the different battery dealers. The questionnaire made after gaining enough exposure
on the company, product and market, which was made possible after discussion with
knowledgeable persons of the company. The questions are structured and direct so as to
make the respondent understand it easily.
All together about 25 questions were framed which took about 5 to 7 minutes to
answer. A model of this questionnaire is enclosed in the annexure. The questionnaire
elicited the following informations.
v Customer preference based on dealers opinion
v Customer Response for various batteries
v Customers opinion about price
v Attributes towards customer preference
v Type of Batteries having more sales
v Reason for the preference of batteries by the customer opinion through
dealers
v Order quantity per time by the dealer (month wise)
v Sales of various type of batteries by the dealers
v Sales turnover per month by the dealers
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v Dealers opinion about Exide
v Retailer reference of Sales promotional activity
v Media prefer for the advertisement
v Level of satisfaction of delivery process
2.3.3 Data Collection Procedure
The modified questionnaire was used it collecting the primary data from the
dealers. The dealers were asked each question and the information is noted by the
researcher in the answer sheets.
Initially before asking the questionnaires good co-operations were obtained from
the dealers while asking the questions to collect the data. The questions were asked in a
structured order. Any doubts that the dealer had were clarified so as to collect the right
answer from the dealers.
2.3.4 Period of Study
The fieldwork was carried out from January 2004 to March 2004; the secondary
data was taken through the company records, newspapers, and business magazines.
Secondary data consists of information that already exists, which was also taken for this
study purpose.
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2.3.5 Techniques of Analysis
A data collected from the respondents were analyzed using various statistical
techniques.
1. Percentage Method
2. Chi-Square Test
3. Weighted Average Method
Chi-Square Test
Chi-Square test describes the magnitude of discrepancy between expected and
observed frequencies. It is a non-parametric test. The test is used for nominal data that
are independent. Chi-square test is also called test of independence because the null
hypothesis in this test is not based on a probability model but on the rules of probability
of independent events.
Chi-square Statistic is calculated using the formula,
X2 = E(o-e)2/e
Where o is the observed frequency, e is the expected frequency and
e = (Row total for the row of that cell) X (column total for the column of that cell) /
(Grand total).
While comparing the calculated value of X2 with the table value we have to
determine the degree of freedom. Degree of freedom means the number of class to which
the value can be assigned arbitrarily or will without violating the restrictions or
limitations placed.
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Tabulated value should be selected at certain specific level of significance. This
studies mostly 0.05 level of significance. If this calculated value is greater than tabulated
value null hypothesis (Ho) is rejected, thus with X2 test it can be analysis that whether
there is a real or significant difference exists among the group of data.
Weighted Average Method:
Weighted Average Method is used in this Research Study to ranking the different
brands according to certain attributes like Brand name, product quality, price and Service.
The formula, which is used for the Weighted Average Method, is,
X = ( Wi.Xi) / Wi
Wi is the Weighted Average for each brand
Wi is the weightage given to ith brand
W1 for rank I =4
W2for rank II =3
W3 for rank III=2
W4 for rank IV=1
2.3.6 Instruments of Data Collections
Schedule of interviews, Simple statistical tools such as Percentage Method,
Weighted Average Method and Chi-square test are used to make the analysis and
interpretation of the data collected.
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2.3.7 Sampling Procedure
Survey was made with random sampling. From that 100 sample was taken by the
probability method.
2.3.8 Tools Used
A questionnaire was developed to analysis the effective distribution network of
Exide Batteries. The questionnaire was constructed based on an in-depth interview with
Battery dealers. The questionnaire made after gaining enough exposure on the company,
product and market, which was made possible after discussion with knowledgeable
persons of the company.
The questions or structured and direct so as to make the respondent understand it
easily. Rating scale was adapted to measuring the respondents. All together about the
question were formed which took about 5 to 7 minutes to answers. A model
questionnaire is enclosed in the Annexure the questionnaire elicited the following
information.
v Customer preference based on dealers opinion
v Customer Response for various batteries
v Customers opinion about price
v Attributes towards customer preference
v Type of Batteries having more sales
v Reason for the preference of batteries by the customer opinion through
dealers
v Order quantity per time by the dealer (month wise)
v Sales of various type of batteries by the dealers
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v Sales turnover per month by the dealers
v Dealers opinion about Exide
v Retailer reference of Sales promotional activity
v Media prefer for the advertisement
v Level of satisfaction of delivery process
2.3.9 Pilot Study
A Pilot study was conducted to find out the feasibility of the questionnaire. The
sample of 10 dealers from Chennai city was randomly selected and administered the
questionnaire. Any modification that the researcher felt essential was carried out so as to
make questionnaire easily understandable.
2.4 DATA ANALYSIS AND INTERPRETATION
TABLE 2.4.1 RESPONSE FROM CONSUMERS
CUSTOMERS RESPONSE NO. OF RESPONDENTS PERCENTAGE(%)
GOOD 54 54
POOR 46 46
TOTAL 100 100.00
Table 1 shows the customer response level for Batteries based on sellers opinion.
54 Respondents opinion is satisfied and 46 respondents is not satisfied. The company has
to utilize this attitude to achieve the companys goal.
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FIGURE 2.4.1 BAR DIAGRAM SHOWING RESPONSE FROM CONSUMERS
RESPONSE FROM CONSUMERS
42
44
46
48
50
52
54
56
1 2
LEVEL OF SATISFACTION
PERC
ENTAGE
1 - Good
2 - Poor
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TABLE 2.4.2 SALES TURNOVER PER MONTH
TURNOVER PER MONTH NO. OF RESPONDENTSPERCENTAGE
(%)
BELOW 50,000 12 12
50,000 1,00,000 44 44
1,00,000 5,00,000 39 39
ABOVE 5,00,000 5 5
TOTAL 100 100.00
Table 2 shows the distributors, dealers turnover per month, 12% of the
Respondents turnover per month is below 50,000, 44% of the respondents turnover per
month is 50,000 1,00,000. 39% of the Respondents turnover per month is 1,00,000
5,00,000 and 5% of the Respondents turnover per month is above 5,00,000.
From this finding the company can decide the credit limit, discount rate and fixing
the schemes.
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FIGURE 2.4.2 BAR DIAGRAM SHOWING SALES TURNOVER PER MONTH
SALES TURNOVER PER MONTH
0
5
10
15
20
25
30
35
40
45
50
1 2 3 4
RUPEES
PERC
ENTAGE
1. BELOW 50,000
2. 50,000 1,00,000
3. 1,00,000 5,00,000
4. ABOVE 5,00,000
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TABLE 2.4.3 BRAND PREFERENCE
BRAND NAME NO. OF RESPONDENTS
PERCENTAGE(%
)
EXIDE 56 56
AMARARAJA 17 17
AMCO 10 10
OTHERS 7 7
DEPENDS UPON THE
VEHICLE10 10
TOTAL 100 100.00
Table 3 shows the Brand prefer by customer based on sellers experience. The
Exide battery was preferred by 56% of the customer. To make the remaining 46% of the
customer to purchase Exide, the company need to reduce the cost and they need to give
discounts.
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FIGURE 2.4.3 PIE DIAGRAM SHOWING BRAND PREFERENCE
BRAND PREFERENCE
10%7%
10%
56%
17%
EXIDE 56%
AMARARAJA 17%
AMCO 10%
OTHERS 7%
DEPENDS UPON
THE VEHICLE - 10%
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TABLE 2.4.4 COMPANIES DEALT BY DEALERS
COMPANY NAME NO. OF RESPONDENTS PERCENTAGE(%)
EXIDE 68 68
AMARARAJA 34 34
AMCO 22 22
OTHERS 15 15
Table 4 shows the companies dealt by dealers, 68% of the dealers are dealing
Exide. To make the remaining dealers are to sell Exide, the company need to give more
margin for the dealers and to give more credit period for the dealers.
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FIGURE 2.4.4 BAR DIAGRAM SHOWING COMPANIES DEALT BY DEALERS
COMPANIES DEALT BY DEALERS
0
10
20
30
40
50
60
70
80
1 2 3 4
COMPANY NAME
PERCENTAGE
1. EXIDE
2. AMARARAJA
3. AMCO
4. OTHERS
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TABLE 2.4.5 BUYERS PREFERENCE TOWARDS PURCHASE OF
BATTERIES
BUYERS PREFERENCE NO. OF RESPONDENTS PERCENTAGE(%
)
MANUFACTURER 57 57
DISTRIBUTOR 43 43
TOTAL 100 100.00
Table 5 shows the Buyers preference towards purchase of Batteries, 57% of the
dealers are purchase the product from the manufacturer and remaining 43% of the dealers
are purchase the product from the distributor.
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FIGURE 2.4.5 BAR DIAGRAM SHOWING BUYERS PREFERENCE
TOWARDS PURCHASE OF BATTERIES
BUYER'S PREFERENCE TOWARDS PURCHASE OF
BATTERIES
0
10
20
30
40
50
60
1 2
PREFERENCE
P
ERCENTAGE
1. MANUFACTURER
2. DISTRIBUTOR
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TABLE 2.4.6 DURATION OF ORDERING THE PRODUCT
DURATION NO. OF RESPONDENTS PERCENTAGE(%)
MONTHLY 17 17
WEEKLY 10 10
DEMANDWISE 73 73
TOTAL 100 100.00
Table 6 shows the duration of ordering the product by the dealers and distributors.
17% of the Respondents are ordering the product monthly, 10% of the respondents are
ordering the product weekly and remaining 73% of the respondents are ordering the
product according to the demand. To make the dealer for stock the product the company
needs to give more credit period for the dealers as well as for the distributors.
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FIGURE 2.4.6 BAR DIAGRAM SHOWING DURATION OF ORDERING THE
PRODUCT
DURATION OF ORDERING THE PRODUCT
0
10
20
30
40
50
60
70
80
1 2 3
DURATION
PERCENTAGE
1. MONTHLY
2. WEEKLY
3. DEMANDWISE
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TABLE 2.4.7 ATTRIBUTES PREFERRED BY THE CONSUMERS ON EXIDE
(Based on dealers opinion)
ATTRIBUTES NO. OF RESPONDENTS PERCENTAGE(%
)
BRAND NAME 42 42
PRODUCT QUALITY 31 31
PRICE 20 20
MAINTENANCE 7 7
TOTAL 100 100.00
Table 7 shows the attributes preferred by the consumers on Exide based on
dealers opinion. 42% of the respondents prefer Brand name, 31% of the respondents
prefer Quality is needed. 20% of the respondents prefer the product according to the cost
of the product, so the company needs to reduce the cost as much as possible and give
more discount for the customers.
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FIGURE 2.4.7 BAR DIAGRAM SHOWING ATTRIBUTES PREFER BY THE
CONSUMERS ON EXIDE
ATTRIBUTES PREFER BY THE CONSUMERS ON
EXIDE
0
5
10
15
20
25
30
35
40
45
1 2 3 4
ATTRIBUTES
PERCENTAG
E
1. BRAND NAME
2. PRODUCT QUALITY
3. PRICE
4. MAINTENANCE
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TABLE 2.4.8 CREDIT PERIOD FROM THE MANUFACTURER OR
DISTRIBUTOR
DURATION NO. OF RESPONDENTS PERCENTAGE(%
)
< ONE MONTH 34 34
> ONE MONTH 40 40
CASH ON DELIVERY 26 26
TOTAL 100 100.00
Table 8 shows the credit period given by the manufacturer or distributor to the
dealer. 34% of the respondents are getting less than one-month credit period from the
manufacturer or distributor. 40% of the respondents are getting more than one month
credit period from the manufacturer or dealer and remaining 26% of the respondents are
purchase the product by ready cash.
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FIGURE 2.4.8 BAR DIAGRAM SHOWING CREDIT PERIOD FROM THE
MANUFACTURER OR DISTRIBUTOR
CREDIT PERIOD FROM THE MANUFACTURER
OR DISTRIBUTOR
0
5
10
15
20
25
30
35
40
45
1 2 3
DURATION
PERCE
NTAGE
1. LESS THAN ONE MONTH
2. GREATER THAN ONE MONTH
3. CASH ON DELIVERY
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TABLE 2.4.9 TYPE OF BATTERIES HAVING MORE SALES
BATTERY TYPE NO. OF RESPONDENTS PERCENTAGE(%)
AUTOMOTIVE 90 90
INDUSTRIAL 10 10
SUBMARINE 0 0
TOTAL 100 100.00
Table 9 shows type of batteries having more sales. 90% of the respondents are
dealing automotive batteries and remaining 10% of the respondents are dealing industrial
batteries. To improve the sales of industrial batteries the company needs to give more
credit period for the industrial batteries and make the dealers to stock the product.
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FIGURE 2.4.9 BAR DIAGRAM SHOWING TYPE OF BATTERIES HAVING
MORE SALES
TYPE OF BATTERIES HAVING MORE SALES
0
10
20
30
40
50
60
70
80
90
100
1 2 3
TYPE OF BATTERY
PERCENTAGE
1. AUTOMOTIVE
2. INDUSTRIAL
3. SUBMARINE
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TABLE 2.4.10 RETAILER PREFERENCE OF SALES PROMOTIONAL
ACTIVITY
SALES PROMOTIONAL
ACTIVITY
NO. OF RESPONDENTS PERCENTAGE (%)
DISCOUNT 53 53
COUPON 12 12
ADVERTISEMENT 22 22
GIFTS 13 13
TOTAL 100 100.00
Table 10 shows the retailer preference of sales promotional activity. 53% of the
respondents choose the discount as a sales promotional activity, 12% of the respondents
are responding coupon and 22% of the respondents are responding Advertisement and
13% for gifts as a sales promotional activity to improve the sales of the product.
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FIGURE 2.4.10 BAR DIAGRAM SHOWING RETAILER PREFERENCE OF
SALES PROMOTIONAL ACTIVITY
RETAILER PREFERENCE OF SALES PROMOTIONAL
ACTIVITY
0
10
20
30
40
50
60
1 2 3 4
SALES PROMOTIONAL ACTIVITY
PERCENTAGE
1. DISOUNT
2. COUPON
3. ADVERTISEMENT
4. GIFTS
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TABLE 2.4.11 MEDIA PREFER FOR THE ADVERTISEMENT
MEDIA NO. OF RESPONDENTS PERCENTAGE(%)
TELEVISION 45 45
NEWSPAPER 28 28
MAGAZINE 10 10
RADIO 5 5
POSTER 12 12
TOTAL 100 100.00
Table 11 shows the Media prefer for the advertisement by the dealers and
distributors. 45% of the respondents prefer to advertise in Television and 28% of the
respondents prefer to make advertisement in Newspaper.
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FIGURE 2.4.11 BAR DIAGRAM SHOWING MEDIA PREFER FOR THE
ADVERTISEMENT
MEDIA PREFER FOR THE ADVERTISEMENT
0
510
15
20
25
30
35
40
45
50
1 2 3 4 5
MEDIA
PERCENTAGE
1. TELEVISION
2. NEWSPAPER
3. MAGAZINE
4. RADIO
5. POSTER
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TABLE 2.4.12 LEVEL OF SATISFACTION OF DELIVERY PROCESS
LEVEL OF SATISFACTION NO. OF RESPONDENTS PERCENTAGE(%
)
SATISFIED 58 58
NOT SATISFIED 42 42
TOTAL 100 100.00
Table 12 shows the level of satisfaction of the delivery process. 58% of the
respondents are satisfied with the delivery process. 42% of the respondents are not
satisfied with the delivery process, so the company needs to make the delivery as much as
quick.
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FIGURE 2.4.12 BAR DIAGRAM SHOWING LEVEL OF SATISFACTION OF
DELIVERY PROCESS
LEVEL OF SATISFACTION OF DELIVERY
PROCESS
0
10
20
30
40
50
60
70
1 2
SATISFACTION LEVEL
PERCE
NTAGE
1. SATISFIED
2. NOT SATISFIED
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CHI SQUARE TEST
TABLE 2.4.13 LEVEL OF SATISFACTION OF SALES TURNOVER PER
MONTH
(SALES TURNOVER PER MONTH)
LEVEL OF
SATISFACTION
5 LAKHS
TOTA
L
SATISFIED 8 30 15 4 57
NOT SATISFIED 4 14 24 1 43
TOTAL 12 44 39 5 100
Ho = Retailers are Not Satisfied with the Sales Turnover
Hi = Retailers are Satisfied with the Sales Turnover
O E O-E (O-E)2 (O-E)2/E
8 6.84 1.16 1.35 0.20
4 5.16 -1.16 1.35 0.26
30 25 5 25 1
14 18.92 -4.92 24.21 1.28
15 22.23 -7.23 52.27 2.35
24 16.77 7.23 52.27 3.12
4 2.85 1.15 1.32 0.46
1 2.15 -1.15 1.32 0.61
X2 = 9.28
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Degree of Freedom = (c-1)(r-1) = (4-1)(2-1) = 3
N = 100
Tabulated Value at 0.05 level = 7.81
Calculated Value is Greater than Tabulated Value (9.28>7.81)
So the null hypothesis (Ho) is Rejected, alternate hypothesis (Hi) is Accepted.
Hence the Retailers are satisfied with the sales turnover per month.
CHISQUARE TEST
TABLE 2.4.14 LEVEL OF SATISFACTION OF DELIVERY PROCESS
LEVEL OF
SATISFACTION
NO. OF RESPONDENTS
SATISFIED 58
NOT SATISFIED 42
Ho: Respondents are satisfied with the Delivery process.
Hi: Respondents are not satisfied with the Delivery process.
X ( X X) ( X X)
2
58 8 64
42 -8 64
TOTAL 128
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( X X)2/N = 128/100
= 1.28
Degrees of Freedom = n 1 = 2 1 = 1
Calculated value = 1.28
Tabulated value = 3.84
Since calculated value is less than the tabulated value, so Ho is accepted.
So the respondents are satisfied with the Delivery Process of Exide.
CHISQUARE TEST
TABLE 2.4.15 RESPONSE FROM CONSUMERS
RESPONSE FROM CONSUMERS NO. OF RESPONDENTS
GOOD 56
POOR 44
Ho: Response from consumers are satisfied by the Dealer.
Hi: Response from consumers are not satisfied by the Dealer.
X ( X X) ( X X)2
56 6 36
44 -6 36
TOTAL 72
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( X X)2/N = 72/100
= 0.72
Degrees of Freedom = n 1 = 2 1 = 1
Calculated value = 0.72
Tabulated value = 3.84
Since calculated value is less than the tabulated value, so Ho is accepted.
So the Dealers satisfy the responses from consumers.
WEIGHTED AVERAGE METHOD
2.4.16 RANKING THE BRAND WITH CERTAIN ATTRIBUTES ACCORDING
TO DEALERS OPINION
COMPANYBRAND
NAME
PRODUCT
QUALITY
PRICESERVIC
E
WEIGHTE
D
AVERAGE
RANK
EXIDE 42 31 7 20 29.5 1
AMARARAJA 17 26 44 13 24.7 3
AMCO 21 24 45 10 25.4 2
PRESTOLITE 11 14 45 30 20.6 5
PANASONIC 15 16 40 29 21.7 4
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From the table it is clear that Exide has scored highest weighted average points.
So it Rank Number one followed by Amco, Amararaja, Panasonic and Prestolite.
3.1 RESULTS
On analysis of the primary data the following points were identified. The survey
sample size is 100.
1) Most of the dealers in the survey fall under the turnover of 50,000 1,00,000
(44%).
2) The customer response for Batteries is good for 56% and 44% are poor based
on dealers opinion.
3) 57% of dealer purchase the product from the manufacturer and remaining
43% of dealer purchase the product from the distributors.
4) 68% of the dealers are dealing Exide Batteries.
5) Customer preference for Exide Battery is 56% based on dealers experience.
6) The reason for recommending Exide is because of Good Brand name with
42% respondents.
7) 31% of the respondents prefer Exide based on the Product Quality.
8) Only 7% of the respondents are satisfied with the price of Exide.
9) 20% of the dealers are satisfied with the Service provided by Exide.
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10)Most of the dealers are dealing other brands because; the cost of Exide is very
high when compared to other brands.
11)According to the weighted average points, Exide is in the first place followed
by Amco, Amararaja, Panasonic and Prestolite based on certain attributes like
brand name, product quality, price and credit facilities.
12)17% of the dealers are ordering the product monthly and 10% of the dealers
are ordering the product weekly.
13)73% of the dealers are ordering the product according to the demand.
14)Apart from Exide, 32% of the dealers are dealing other Company batteries
like Amararaja, Amco, Prestolite and Panasonic.
15)34% of the respondents are getting less than one-month credit period from the
supplier and 40% of the respondents are getting more than one-month credit
period from the supplier.
16)26% of the respondents are receiving cash discount from the supplier while
they purchase the product with cash on delivery (COD).
17)The sales percentage of Automotive battery is 90% and the Industrial battery
is 10%.
18)For the requirement of sales promotional activity 53% of the respondents are
responding for Discounts followed by Advertisement 22%, Gifts 13% and for
Coupons 12%.
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19)Advertising media preferred by the dealers to attract more customer is
Television with 45%, Newspaper with 28% followed by Poster 12%,
Magazine 10% and 5% of the respondents prefer to advertise in Radio.
20)58% of the respondents are satisfied with the suppliers delivery period and
42% of the respondents are not satisfied with the delivery period.
3.2 SUGGESTIONS AND RECOMMENDATIONS
The company has to take necessary steps to regulate the Channels of distribution.
The steps are as follows.
1. If the credit period is extended to two months, the dealers can stock out products
than the other brands since most of the dealers are ordering the product according
to the demand.
2. The company has to take necessary steps to reduce the cost of the product.
3. The company need to take necessary steps by giving 2 months credit period and
by giving 6% discount for the dealers who are dealing other brands rather than
Exide.
4. The company has to take necessary steps to motivate small dealers also, through
promotional activities and introduce new schemes.
5. Company representatives have to contact the distributors and dealers atleast twice
a month.
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6. The percentage of the commission has to increased to motivate the dealer around
2% to 5%.
7. As the brand image is one of the creative features to influence the customers
while they are purchasing the battery, it can be done by effective advertisements
through the Television media more than print media.
8. The company need to take necessary steps for quick delivery to avoid stock
shortage. They need to deliver the product as quick as possible, since most of the
dealers are ordering the product according to the demand wise.
9. The company still needs to take steps for the after sales service and the service
need to be quick as much as possible.
The company need to take necessary steps by giving more discount and credit
period to sell Exide. If this is made then definitely, the market share of Exide is
still improved.
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3.3 CONCLUSION
An analytical study on distribution channel in Exide industries Limited has helped
in arriving at valuable conclusion through the analysis of primary data collected. The
study revealed that the company can improve the effectiveness of present network system
by motivate and encourage the dealers in terms of quick delivery in all areas, percentage
of commission, good advertisement support, quick after sales service and try to reduce
the cost of the product. With this strategy when they go for marketing plans, this Exide
Battery can still hold the position of leader in the market.
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APPENDICES
QUESTIONAIRE
Name of the Retailer:
Address :
1. What are the Companies you are dealing?
Exide Amco Amararaja Panasonic Prestolite
All
2. How is the response from Consumers fro the Batteries?
Good Poor
3. What is the Consumers opinion about price? Low Moderate High
4. Which Brand do Customer Prefer more? Exide Amararaja Amco Panasonic Prestolite
Others Depends upon the vehicle
5. What are the attributes, which Customer prefer (based on your experience)? Brand name Product Quality Price Maintenance
6. If a Customer does not mention any brand, which brand do you suggest normally?
Exide Amco Amararaja Panasonic Prestolite others Depends upon the customer vehicle
7. What it is the reason for the preference?
Brand Name Quality Price Margin Maintenance
Service
8. How do the Manufacturer help in selling the product?
Sending sales representative Giving Training
9. Where do you buy the Batteries?
Manufacturer Distributor
10. How the Manufacturer/Distributor gets the order from you?
Sales Representative Phone
11.What is the Duration of Ordering the Product?
Monthly Weekly Demandwise
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12.What is the Credit Period given by the Manufacturer/Distributor?
< one-month > one-month Cash on Delivery
13.Are you Satisfied with the Manufacturer during Delivery Process? Satisfy Not Satisfy
14.Which type of battery which you normally Sell?
Automotive Industrial
15.Rank the brands according to Brand Name, Product Quality, Price and
Service?
COMPANYBRAND
NAME
PRODUCT
QUALITY
PRIC
E
SERVIC
E
EXIDE
AMARARAJA
AMCO
PRESTOLITE
PANASONIC
16.Which Sales Promotional Activity do you suggest? Discount Coupon Advertisement Gifts
17.Which Media do you Prefer for the Advertisement? Television Newspaper Magazine Radio
Poster
18.What is the Turnover Per month? < 50,000 50,000 1,00,000 1 5 lakhs
> 5 lakhs
19.Are you Satisfied with the Turnover? Satisfy Not Satisfy
20.Give me you Suggestions and Recommendations to Exide Industries Ltd?
THANK YOU
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REFERENCES
Marketing Management - Philip kotler
Statistical Methods - S P Gupta
Research Methodology - Uma sekaran
Research Methodology - C R Kothari