INSTITUTE OF MANAGEMENT TECHNOLOGY
CENTRE FOR DISTANCE LEARNING
GHAZIABAD
End-Term Examinations – December 2011
Subject Code : IMT-04
Subject Name: Distribution & Customer Satisfaction
Notes:
Time Allowed : 3 Hours
Max. Marks : 70
(a) Answer any FOUR questions from SECTION-A and CASE STUDY as given in SECTION-B.
Each Question (SECTION-A) carries 14 MARKS and (SECTION-B) Case Study carries 14 MARKS.
(b) For students enrolled before January 2008, the Question Paper would be treated for 50 marks instead of 70 marks.
(c) No doubts/clarifications shall be entertained. In case of doubts/clarifications, make reasonable assumptions and proceed.
SECTION-A
MARKS : 56
(1)
If retail majors like Walmart are allowed to operate in India- the existing distribution chain will be affected
and the livelihood of members may be at stake. Discuss
(2)
ITC buys sun-flower seeds directly from the farmers in Andhra Pradesh to produce sun-flower oil. How do
you think the farmers benefit in such an arrangement? Give at least 3 points.
(3)
For what categories of products, the distribution system is shorter than traditional distribution systems? State
3 categories with brief reasons
(4)
Franchising is a more long term arrangement than normal distribution system- explain this statement with at
least 3 points as to how it is long term
(5)
Customer retention and customer churn are key words these days in business- what do you understand by
these words?
(6)
What are the various means through which a company can help improve customer satisfaction? Give 5 bullet
points with brief explanations
(7)
What are the different means through which a Company can exercise power and thereby control on its
channel partners?
SECTION-B
(Case Study)
MARKS : 14
Mother Dairy was set up in 1974 under the Operation Flood Program. It is now a subsidiary company of National
Dairy Development Board (NDDB).
Mother Dairy distributes & sells
 Mother Dairy brand milk, curd, Ice creams, dairy whitener, cheese, butter
 Dhara range of edible oils
 Safal range of fresh fruits & vegetables, frozen vegetables and fruit juices
Mother Dairy sources
 liquid milk from dairy cooperatives ( Mother Dairy)
 fruits and vegetables from farmers / growers associations ( Safal)
 oilseeds from oilseeds grower cooperatives ( Dhara)
Mother Dairy ensures that milk producers and farmers get market prices by offering quality milk, milk products and
other food products to consumers at competitive prices.
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Mother Dairy sells 2.2 million litres of milk daily in Delhi , NCR, Western U.P ,Haryana, Mumbai and Hyderabad.
Mother Dairy Milk has a market share of 66% in the branded sector in Delhi where it sells 2 million litres of milk
daily and undertakes its marketing operations through more then 10,000 retail outlets including 780 exclusive
outlets.
Its mix of bulk vending booths, retail outlets and mobile units give it a significant competitive advantage in its
distribution. Mother Dairy ice creams launched in the year 1995 have been showing a continuous growth over the
years, and today has 62% market share in Delhi and NCR. Mother Dairy ice creams are now also available in UP,
Punjab, Rajasthan, Uttaranchal, Mumbai and Kolkata.
Mother Dairy also manufactures and markets a wide range of dairy products that include butter, dahi, ghee, cheese,
milk, dairy whitener, lassi & flavored milk.
The company markets an array of fresh and frozen fruit and vegetable products under the brand name SAFAL
through a chain of 300 owned Fruit and Vegetable shops and over 20,000 retail outlets across India. Fresh produce
from farmers is processed at their modern processing facility in Delhi with capacity of 1.2 lakhs MT per annum. A
state-of-the-art fruit processing EOU plant at Mumbai supplies quality products in the international market. Another
fruit processing plant has been set up at Bangalore.
Mother Dairy also sells the Dhara range of edible oils. Dhara is a leading brand of edible oils and is sold across
India in over 200 thousand outlets. Dhara has following variants:





Refined Vegetable Oil
Refined Soybean Oil
Refined Sunflower Oil
Kachi Ghani Mustard Oil
Filtered Groundnut Oil.
Questions
1.
Milk is primarily distributed in Delhi/ NCR and surrounding areas whereas milk products, farm products and
edible oils are sold across India? Why do you think Mother Dairy follows this 2 pronged distribution
strategy?
2.
What are the key distribution strategies which Mother Dairy has adopted to keep at bay emerging strong
competition from Amul Dairy in Delhi/NCR- make your own analysis.
3.
How can Mother Dairy repeat the success of its milk distribution in other metro markets like Bangalore and
Mumbai- give 3-5 crisp bullet point answers.
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