Food Processor’s Distribution Service to the Retailers - A Case Analysis

Abstract

A distribution system is a key external resource. Normally it takes years to build, and it is not easily changed. Retailers achieve superior efficiency in making goods widely available and accessible to target market. Stimulating the retailers to effect better selling of a company’s product starts with understanding their needs and wants. The company should get information regarding it to formulate appropriate distribution and sales promotion strategies. This study throws light on the case firm Sakthi Masala’s distribution service level to the retailers, retailer’s preference for various schemes offered by different masala companies and the problemsfaced by the retailers in handling the products of the Sakthi masala. Totally 100 retailers encompassing 50 B class retailers and 50 Cclass retailers were selected to study the distribution service of the company. The distribution service quality to the retailers were evaluated using the dimensions like tangibles, reliability, responsiveness, assurance and empathy. The retailers rested themselves between neutral to extremely dissatisfied for the tangible dimension of service quality. In case of reliability and responsiveness the retailers stood between  dissatisfied and neutral. In case of assurance dimension the retailers were
dissatisfied to satisfied. In case of empathy the retailers stood almost neutral. The retailers invariably preferred free masala packets to begiven  y the company as retailer’s scheme for sales promotion. There existed  ifference in trade schemes of the different company. Inadequateservice  as the major problem faced by the retailers in handling the Sakthi masala products.