Description
Balaji Wafers Pvt Ltd
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AN INDUSTRIAL TRAINING REPORT ON BALAJI WAFERS PVT LTD RAJKOT WITH SPECIALISATION IN
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CHANNELS OF DISTRIBUTION
INDEX
Sr. No
1 2 3
Particular
General Information Marketing Department Channel Of Distribution A ) Channel Of Distribution B) Physical Distribution
Page No
10 30 42 43 65 74 75 76
4 5 6
Future Plans Conclusions SWOT Analysis
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7 8 9
Findings And Recommendation Bibliography Limitations Of The Report
78 80 81
GENERAL INFORMATION
Contents Sr. No
1 2 3 4 5 6 7 8 Introduction Company Profile Mission History And Development Corporate Goals And Objectives Key Persons Of The Company Size And Form Of Organization Organization Chart
Particulars
Page No
11 12 13 14 16 17 18 19
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9 10 11 12 13 14 15 16
Time Keeping System Factors Of Location Facilities Given To The Employees Turnover Of The Company Products Of The Company Chart Of Production Process Research Methodology Questionnaire
20 21 23 24 24 25 26 29
INTRODUCTION
For preparation of an industrial training report it is very important to understand the general matters of the company without the information of such matters the report it is very important to understand the general matters of the company. Without the information of such matters the report is incomplete as it does not provide a perfect knowledge of company these type of general matters are considered in the section of general information. BALAJI WAFERS PVT LTD produces ready to eat food items now a day?s people are fond of eating ready to eat food and BALAJI name is very popular in Gujarat and saurashtra. It has the one and only fully automatic plant in Gujarat the main objective of the company is to provided best quality product
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at the cheapest rate we can also say their mission is quality first coast second the market of the product is large and comprehensive.
COMPANY PROFILE
Name Of The Company Head Office BALAJI WAFERS PVT LTD BALAJI WAFERS PVT LTD Vajdi(Vad), Kalavad Road Taluka Lodhika Rajkot 360003 BALAJI 1982 Food Item(Snacks) 1200 Kgs Per Hour Size Form 6 Medium Scale Unit Private Limited
Trade Mark Year Of Establishment Nature Of Product Production Capacity Size And Form Of Company
Slogan
Any Time Crunchy All Time Fresh Corporation Bank 0281-2387132\2385744 0281-2389300 [email protected] Www.Balajiwafers.Com
Bankers Phone No Fax No E-Mail Address Website
MISSION
1. To provide ultimate value satisfaction to its customers in terms of quality commensurate with price through a. b. c. d. Better quality Excellence in technology Speedy service Management expertise
2. Too much preferred organization for both its future and present a. b. c. d. Employees customers\suppliers Related agencies and society at large Share holders
3. Continue its march towards program and retain its front line BALAJI a symbol of quality
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HISTORY AND DEVELOPMENT
History is the mirror of the past it shows the glorious efforts done by the promoters of the company in the past the history speaks of the past performance about the financial performance, development of the company and the present situation. Balaji wafers has also an interesting history behind the establishment Mr. Bhikubhai the chairman and Mr. Chandubhai the managing director of the company worked very hard to reach at the current position. The history of Balaji Wafers begins with the era when Chandubhai and Bhikubhai were working on contract basis for supplying the wafers to the canteen of astron theatre at Rajkot city. Shri Meghji Virani, Bhikubhai Virani, Chandubhai Virani and Kanubhai Virani are the sons of Shri Popatbhai Virani of Dhundhoraji village of Jamnagar district. But at that time they got the raw materials from the 3rd party and than they manufactured and supplied the same to the canteen of Astron Theater but there were a problem of short as well as delay in supply of products on time. As these kinds of problem can lead a business to peril and can ruin it something had to be done in these regards as an ultimate solution to all the problems they decided to manufacture wafers on their own and supply the same to canteen and thus the foundation of Balaji Wafers was first setup but without any brand name in 1982. Since the taste and quality was excellent, demand for their wafers was increasing day by day to pace with this increasing demand of wafers in market they started producing wafers in bulk without any compromise in quality and taste of the products they acquired a small place with very limited investment with indigenous frying method thereafter a semiautomatic plant was established with a production capacity of 200kgs per hour they started selling their product initially in ordinary packing but after upgrading the technology they used decent packing to attract cream market and thus got more market share in the food market. This development had lead BALAJI from normal wafers producer to BALAJI WAFERS PVT LTD in 1990.
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DEVELOPMENT
Development means what the company had done it the past and how much overall efficiency has increased till today Balaji Wafers has come long way since establishment and has firmly established itself as a leader in high quality product and has made remarkable improvement both in services and quality of products. The initial investment of the company was only Rs. 25000 in recent stage it has assets of Rs. 5 crores and will be increase in future the company conforming with many hardest and make a progress and development which may be described by following ways. 1. It started a production in simple packing and without brand name and satisfied the demand at canteen since, the quality is best the demand of the product was increased. 2. This development had lead BALAJI from normal wafer producers to BALAJI WAFERS PVT LTD in 1990 up to now BALAJI was producing the products manually. 3. After then to meet the demand they started manufacturing the product in semiautomatic plant the production capacity of this machinery was 200 kgs per hour. 4. After then they adopt a highly techniqued fully automatic plant which is only one in whole of Asia the production capacity at this plant is 1200 kgs per hour. Recently they set up a huge fully automatic plant for production as well as nitrogen packing for long term preservation of the products.
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CORPORATE GOALS AND OBJECTIVES
Company has its own culture and identity in business world it is effort of the company to maintain identity and to be no 1 in global market company has fixed its goals and laid down some certain mission to achieve them.
CORPORATE GOALS
1. 2. 3. 4. To ensure quality at all stages. To increase productivity and market share of the firm. To increase the profitability of the firm. Provide speedy services and satisfies the need and wants of the society. 5. To keep a slim and trim but fully satisfied management team to operate faster and to achieve higher levels of business and growth effectively. 6. To effort foreign customer and export the product in near future.
OBJECTIVES
Obviously primary objective of any company is to profit maximization but in present competitive marketing approach profit maximization should not be one and only goal but it is a short term goal every company wants to increase prestige market share etc so wealth maximization becomes important goal of company which is also long term goal of the company.
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KEY PERSONS OF THE COMPANY
Mr. Bhikubhai Virani Mr. Chandubhai Virani Mr. Kanubhai Virani Mr. Keyur Virani
Chairman Managing Director Technical Director Research And Development Managed General Manager Marketing Manager Sales Representative
Mr. Hitesh Virani Mr. Nayan Tank Mr. Jay Sachdev
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SIZE AND FORM OF THE ORGANIZATION
SIZE
Industries can be categorized on the basis of capital invested in it there are three categories. 1. Small scale industry. 2. Medium scale industry. 3. Large scale industry. So far as BALAJI WAFERS PVT LTD is concerned it can categorized as medium scale industry because as per new industrial law the investment limit prescribed by government for small scale industries is 5 crores. Investment about more than 5 crores is called medium scale industries BALAJI WAFERS PVT LTD has invested more than 5 crores.
FORM OF ORGANIZATION
According to John Piffiner “Organization is an essentially a matter of man to man job to job and department to department.” There are different types of organization like 1. 2. 3. 4. 5. 6. Line organization Staff organization Line and staff organization Committee organization Project organization Matrix organization
Out of all these Balaji Wafers follows line and staff type of organization structure line and staff organization means to prepare plans to take vital decisions and to implement them effectively all these function cannot be performed simultaneously by a single person hence there emerged a system where in line officers received advice from the staff experts the organization structure is as follows.
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ORGANIZATION CHART
Chairman
Managing director
Technical director
Technical staff Production manager Marketing manager
Area wise salesmen Technical workers Packing supervisor
Working staff
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TIME KEEPING SYSTEM
Time is very important for any business unit any business unit as from the title time keeping system we can say that under this system the arrival and exit time of the employees is noted Balaji wafers is having mainly a general shift and in between they have a lunch break of one hour which is mentioned as follows.
General shift
8am to 5 pm
Lunch break
12 pm to 1 pm
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LOCATION FACTORS
Location plays an important role in establishment of a new unit every business entrepreneur of a business unit must give full consideration to the suitable location for enterprise because success or failure is highly depended on the location for enterprise because success or failure is highly depended on the location of the unit optimum location point is expected to give the lowest unit cost of production as well as of distribution and hence it can be most profitable for the business an entrepreneur must be choosing an ideal location at the time of launching the enterprise in other words all the pertinent factors influencing location will have to be taken into account and weighed very carefully. So far as BALAJI WAFERS PVT LTD is concerned it requires potatoes, edible oil , iodized salt, bananas , mungdal, chanaldal, vatana etc in the production of various type of product such raw materials available at Rajkot very easily main reason for such location of the unit are as follows:
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AVAILABILITY OF RAW MATERIALS
The most important factor, which is directly affected to the product, is the availability of raw material for producing the product. These respective product and its raw materials of Balaji Wafers are:-
products
Potato Wafers Farali Chevdo Mungdal
raw materials
Potatoes MungDal
ChanaDal
ChanaDal
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Vatana
Peas
Peanuts Masala Sing Sing Bhujiya
Roasted Peanuts
Besan Groundnut
Ratlami Sev Banana Wafers
Besan , Mathdal Banana
In addition to these iodized salt edible oil, chilly powder, black pepper etc all the raw material is required so whichever material is easily available at nearest place. Potatoes are purchased from Disa, Ahmedabad and Surat through dealers as per requirement.
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ELECTRICITY:-
The availability of electric power is very essential for any unit where production is done 24 hours continuously. BALAJI WAFERS PVT LTD gets electricity from G.E.B. and in absence of G.E.B. light it can be operated by their own generators.
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LABOR:-
For running industry main essentially is the labor because without man any work is not start so, man is focus of any industry essential supply of labor is in required quantity is also taken into consideration while establishing an industry if the company can find skilled and experienced labor at minimum wage rate it can reach to its organizational goals in time in Rajkot city both skilled and semiskilled labors are available the level of education is also high in Rajkot.
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TRANSPORTATION:-
For every industry transportation facilities have much important to run their work regularly and smoothly as to get raw material quickly as well as to supply their finished goods to the market. Rajkot has an all weather part so there is no problem of transportation for BALAJI WAFERS PVT LTD moreover Rajkot has all the facility of transportation except seaway like railway airway and road way etc it is well known that railway of Rajkot has the direct connection with the national railway line.
FACILITIES GIVEN TO THE EMPLOYEES
It is the duty of any unit to provide beneficiary services to the employees of the unit.Balaji Wafers also provides many basic welfare facilities to the employees. This company provides the following beneficial facilities to the employees undertaken to the provision of the law. Facilities given to the employees are as follows:1. 2. 3. 4. 5. 6. 7. 8. Bonus is paid every year. It also provides transportation facility. It also provides refreshment facility. At the time of any accident during the course of employment the company provides first aid and hospital expenses. Company also provides it s product at a concession rate to employees. At the time of any family function of the employees company provide several facilities like gift articles etc. Music and song at production place. Lunch is also given to the employees at a rate of Rs. 5 per dish.
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TURNOVER
Turnover refers to total annual sales turnover so far as BALAJI WAFERS PVT LTD is concerned its annual turnover is around 60 crores for all products. Now let us classify the turnover according to wafers and namkeen. Wafers 85% Namkeens 15%
PRODUCTS OF THE COMPANY
The product is the most important element by which any firm can prove its efficiency and improvement of quality product is a symbol of the business firm. BALAJI WAFERS PVT LTD is engaged in the production of food item they produce 12 different types of snacks items which are as under:1 Potato Wafers. 2 Masala Wafers. 3 Banana Wafers. 4 Masala Banana Wafers. 5 Farali Chevdo. 6 Peanuts. 7 Ratlami Sev. 8 Sing Bhujiya. 9 Mung Dal. 10 Chana Dal. 11 Vatana. 12 Masala Sing.
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CHART OF PRODUCTION PROCESS
The company has a fully automatic plant especially for the production of wafer the capacity of this plant is nearly 1200 kgs per hour the production process of wafers is as under in short. Raw material Washing Boiling Frying Ingredients Packing In case of namkeens there is a special boiling machine the process of different namkeens are as follows:Boiling Frying Ingredients Packing
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RESEARCH METHODOLOGY ?
RESEARCH
Research is the application of human intelligence in systematic manner to a problem. It may minimize the total uncertainty by intelligence use of the most reliable data available in the organization. According to P.V. Young we may define research methodology as scientific undertaking which by means of logical and systematized method, aims to discover new facts.
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1. 2. 3. 4. 5. 6. 7. 8. 9.
STEPS IN RESEARCH METHODOLOGY:Selection or choice of research problem. Understanding the research problem. Collection and review of knowledge of written material. Selection of the most promising method of solution. Listing and selection of different tools of data collection. Execution of research plan. Coding and processing of research data. Preparation of the brief report. Preparation of the final report.
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SOURCES OF DATA
There are different sources of collecting data before deciding the sources to collect the data one has to make a proper planning of investigation and purpose of inquiry following are the sources of collection of data.
Sources of data
Primary sources
Secondary sources
Internal sources
External sources
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INTERNAL SOURCES
Such type of information is always available in books of organization e.g. sales, production, salary and wages etc.
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EXTERNAL SOURCES
This type of information is collected from outside agencies hence it is called data collected from external sources primary data are original and first hand information while secondary data are second hand information already prepare or collected in the previous research.
Methods of collecting primary data
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1. 2. 3. 4. 5.
Direct personal interview Indirect personal interview Information from correspondence Mailed questionnaires Questionnaires to be filled by the enumerators
METHOD FOR COLLECTING SECONDARY DATA
1. Government publication 2. Publication of international organization (World Bank, U.N.O, I.M.F etc) 3. Semi official publication 4. Reports of committee and commission 5. Private publication 6. Magazines and journals and newspapers 7. Research institutions 8. Annual report of joint stock companies My attempt to research was quite simple and straight forward first of all the list of questions was prepared by me under guidance of our professors an then I asked many questions regarding advertising to marketing manager the main advantages of this method are that accurate information can be collected and personal conduct becomes possible.
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QUESTIONNAIRE
1. What is the history of the unit? 2. How much it has developed till now? 3. What was the year of establishment? 4. Where is its head office? 5. Who are the bankers of the unit? 6. What is the nature of the product? 7. What is its production capacity? 8. What is the size and form of the unit? 9. What are the goals \ objectives and mission of the unit? 10. What is the time keeping system? 11. What are the reasons for the location of the unit? 12. What are the facilities given to your employees? 13. What are the products of the company and what is its total turnover? 14. What is the production process of the products?
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MARKETING DEPARTMENT
Sr No
Particulars
Page No
31
1
Introduction 32
2
Organization of marketing Department 33
3
Product Planning 34
4
Pricing Policy 36
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Target Audience And Competitors 37
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Advertisement 38
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Channel Of Distribution 39
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Marketing Research 40
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Branding, Packing ,And Slogan 41
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Questionnaire
INTRODUCTION
The functioning activity of marketing department starts when the product reaches the market form the production unit Phillip Kotler defines market as a market is an area for potential economics. The shortest definition of marketing is meeting the customer„s needs profitably the company should have a very efficient and excellent marketing department which tries to provide maximum satisfaction to the customers while having reasonable profit on the other hand. In BALAJI WAFERS PVT LTD marketing has also vital importance its marketing department is very systematic the marketing manager Mr. Nayan tank is very hard working and experienced person. He operates marketing department and all the marketing activities of BALAJI WAFERS PVT LTD.
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ORGANIZATION STRUCTURE
Marketing is essential for all the organizations marketing is the tool by which an industry can earn profit by selling product. It is true, nothing happens I our economy until somebody sell the product “as seeing the importance of marketing its organization structure must be well prepared the flow of authority is from upward to downward and the flow of responsibility is from down ward to upward be necessary. Chairman Managing directors Director Marketing manager Area wise sales man
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PRODUCT PLANNING
Product planning means the planning for the product that is to decide what type of production is to be produced or what needs or requirement the product has to satisfy and for whom the product is meant. Product planning is an important concept for any industry. Every industry must plan its products as which result profitable for the company and satisfy the consumer wants So far as Balaji Wafers is concerned it mainly produces 1. Potato Wafers 2. Masala Potato Wafers 3. Banana Wafers 4. Banana Masala Wafers 5. Farali Chevdo 6. Ratlami Sev 7. Sing Bhujiya 8. Chana Dal 9. Peanuts 10. Mung dal 11. Vatana 12. Masala Sing It plans its product in order to maintain existing customers in fact BALAJI WAFERS PVT LTD does not require much of product planning it has a very good marketing network and also a very good market for its product.
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PRICING POLICY
Out of 6 Ps of marketing mix pricing is one of them price of the product is main element in any organization. Therefore, decision regarding price is the most vital decision for a marketing manager. Right price can promote sales of the company. While wrong price affects the sales of the company largely, so mixing of price is more important than all other tasks. Pricing is an important element of the marketing department. a company has to setup the pricing policy considering so many factors such as demand, competition, government interference etc even company has its own pricing policy. BALAJI WAFERS PVT LTD is in concerned the company tries to keep least prices than competitors price lower prices are there because of their minimum advertisement cost. The company has adopted retail pricing policy under the policy the company binds the retailers to sale the branded goods at the fixed rate decided. The company gives fixed commission to dealers the catalogue of price is given as follows:-
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PRICE LIST
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TARGET AUDIENCE AND COMPETITORS. ?
TARGET AUDIENCE
The target customers means the target is fixed based on level of customer?s age, sex, needs, wants, demand, competition, and changing fashion of the society. As far as Balaji Wafers is concerned the market of the company is evolved and large the product of “BALAJI" is a food product so the main audience of the company is children and young people.
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COMPETITORS
The following are the competitors of BALAJI WAFERS PVT LTD 1. 2. 3. 4. 5. Ruffles Lays Uncle Chips Samrat Laher Kurkure
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ADVERTISEMENT
Advertisement is an important aspect in marketing. It is concerned with the preparation of visual and oral messages for making people aware of and favorably inclined towards product, brand, service, quality and institution and so on. The ultimate aim of advertising is to contribute towards increase sales and to increase profit. It is a specialized technique of popularizing the product and is indispensable in the marketing of goods. Advertising is a powerful promotion tool to establish and retain brand loyalty, whether a company is introducing new produces or expanding the existing one. Advertising is inevitable in this modern competition market. It can be done through various ways. So far as “BALAJI” is concerned it also spent a good amount on advertising. It makes advertising by following ways:1. 2. 3. 4. 5. 6. Lighting board Banners Kitchen Calendar Wall painting Wall clock
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CHANNEL OF DISTRIBUTION
Channel of distribution is the route or ways through which goods or services move from the place of production to place of consumption. In modern marketing so many channel of distribution exist. Channel of distribution have a vital role especially in the distribution of consumer goods. The most innovative product offered as an attractive price world is of no use unless there is as efficient distribution system. So far as Balaji Wafers is concerned its product is a consumer product so it mainly sale the product directly to its dealer?s and distributor not to consumer. However it has also a big distribution network at various places in Gujarat In case BALAJI WAFERS PVT LTD transportation and dispatch activities are performed by carry and forward agencies. The names of carry and forward agencies and their areas are given below
? Kataria enterprise:? Suarashtra north Gujarat and south Gujarat
? Swami Lilasha enterprise:? Kutch
? Atmiya agencies:? Rajkot & nearest area There are total 175dealers of BALAJI WAFERS PVT ltd in all over Gujarat we can show the channel of distribution of the company is as follows Company Carry and forward department Distributor Dealers Retailers
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Consumers
MARKETING RESEARCH
Marketing research is the systematic collection analysis and separation of idea and reading and relevant marketing situation facing the company it is highly necessary in this modern competitive age. A company can conduct marketing research in different ways company can hire a marketing research firm also however, most of the large companies have their own marketing research department because in this competitive age no firm can remain careless about a single change in market. BALAJI WAFERS PVT LTD has its own research and development department which is handled by Mr. Keyur Virani marketing research manager prepares actual reports about the market and submit the marketing research manager and to understand the problems regarding marketing. Research is conducted indifferent marketing factors like product and service, sales, advertising, pricing, distribution packing etc.
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BRANDING, PACKING AND SLOGAN
? BRANDING
The word brand is a comprehensive term. The brand is to name or mark is a proof of ownership it means a signor symbol of quality. it is the best means of advertising and positioning in the market branding is the best means of capturing and retaining the consumer demand in a competitive market the marketer can create brand equity, brand loyalty and brand image for his products only through branding BALAJI WAFERS PVT LTD has the brand name as “BALAJI”.
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PACKAGING
packaging may be defined as the general group of activities in the planning of a product these activities concentrate on formulating a design of the package and producing an appropriate and attractive container or wrapper for a product the container itself can act a forceful though silent and colorful salesman at the point of purchase or an effective medium of advertisement encouraging impulse buying many a time , package design itself can act as a register brand, packaging is necessary to present flowing out of such liquid. It is essential to maintain freshness and quality; it can prevent the danger of adulteration In BALAJI the packing is done by fully automatic packing machine. They are able to prepare 180 to 100 packs in 1 minute.
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SLOGANS
The entire well known companies have selected an effective and meaningful slogan to communicate with their customer about the product in very few words it is the explanation of the product in one line in emotional way the slogans with right meaning attract the consumer to purchase the particular product forever. Balaji has the following slogans:-
IN ENGLISH
“Any time crunchy All time fresh”
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IN GUJARATI
“Jyare pan khav karkari ane taji”
QUESTIONNAIRE
1. What is the structure of marketing department? 2. In which way product planning is done? 3. What is your pricing policy? 4. Who are the target audience and competitors? 5. What is the advertising policy of the company? 6. Which type of channel of distribution do you follow? 7. Is marketing research done in your company? 8. If yes, how do you do the marketing research? 9. What is the brand of product? 10. What are the slogans for the product selling? 11. What type of packing is done for various products?
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CHANNEL OF DISTRIBUTION
CONTENTS
Sr No
Particulars
Page No
42
1
Channel Of Distribution 44
2
Reason For Selecting The Topic 65
3
Physical Distribution
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TABLE OF CONTENTS FOR CHANNEL OF DISTRIBUTION
Sr No
1 2 3 4 5 6
Particulars
Concept Of Channel Of Distribution Role Of Channel Of Distribution Level Of Channel Of Distribution Channel Decision Marketing Middleman Dealer , Distributor And Carry And Forward Agents Terms And Conditions /Rules And Regulations Compensation To Channel Member Motivation To Channel Member Evaluation And Performance Channel Conflict And Solution Advertising Through Channel
Page No
45 46 47 50 52 54
7
56
8 9 10 11 12
57 58 59 60 62
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Questionnaire
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REASON FOR SELECTING THE TOPIC
Marketing management is one of the most complexes and challenging field of endeavor contains in itself various functions like:? ? ? ? ? ? ? Product mix Price Advertising Personal selling Consumer behavior Marketing research Channel of distribution etc
From all the functions mentioned above all are equally important for capturing sufficient market. As far as channel of distribution is concerned it is internally related by channel of distribution and physical distribution both. The goods and services available must be matched against the wants desires and need of users. Channel of distribution serves to achieve this meeting of goods between producer and users\ customers i.e., why I have chosen the distribution channel as a topic of training report because without this no marketing function can be done if the goods are not able to reach its ultimate consumer.
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CONCEPT OF CHANNEL OF DISTRIBUTION
Channel of distribution is a way or path through which goods transfer from the pace of production to the place of consumption. In other words channel of distribution is a pipeline by which customer or user can obtain. The product which can satisfy their needs. The producers cannot be in the market at all the time and in every places for selling their each units produced. Because they have no such time and again it costs them too much to go in the market and sell their product for this difficulty they take the help of middleman which include wholesalers, retailers, dealers, agents, distributors etc. all of these middlemen united create a channel through which goods are distributed smoothly. The middlemen are well acquitted with the position of market and hence they can distribute the company?s product easily. According to Philip Kotler, “marketing channel is set of interdependent organization which is involved in the process of making a product or service available for use of consumption.” Distribution system is divided into two parts or division they are:1 channel of distribution. 2 physical distributions. A distribution channel moves goods from producer to consumers. It overcomes the major time, place and possession gaps that separate goods and services from those who would use them. Members of the marketing perform many key factors, which are outlined as follows:? ? ? ? ? Help in production work. Financing the producers. Aid in contribution. Promotional activities. Matching demand and supply. 41
Balaji Wafers is doing all these activities in well coordinated style. All the persons related with distribution channel are well experienced.
ROLE \ OBJECTIVES OF CHANNEL OF DISTRIBUTION
In an ever widening market, particularly in consumer goods market, distribution channel have distinctive role in the successful implementation of marketing plans and strategies. These channels perform the following marketing functions in the machinery of distribution. 1. The searching out of buyers and sellers (contracting). 2. Matching goods (merchandising). to the requirement of the market
3. Offering product in the form of assortment of packages of item usable and acceptable by the consumers. 4. Persuading and influencing the prospective buyer to favor a certain product and its maker (personal selling \ sales promotion). 5. Implementation of pricing strategies in such a way that would be accepted to the buyer?s and ensures effective distribution. 6. Looking after all the physical distribution functions. 7. Participating activity on the creating and establishment of market for a new product 8. Offering pre and after sale services to customers 9. Transferring of new technology to the user along with the supply of product and playing the role of change agent. 10. Provide feedback, information and marketing intelligence and sales forecasting services for their regions to their suppliers. 42
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LEVEL OF CHANNEL OF DISTRIBUTION
The number of channel level can characterize the marketing channel. Each intermediary that performs work in bringing the products to the final buyer constitutes a channel level. Since the producer and the final customer both perform work, they are part of every channel. There are following type of channel of distribution.
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Zero level
A zero level channel is also called the direct marketing channel it consists of a manufacturer, selling directly to the final consumer. The major zero level channels are door to door sales, home parties, mail order etc. it depends on the type and nature of product and the requirement of the customer its diagram is as follows Manufacturer Customer
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One level
A one level channel contains one selling intermediary such as a retailer as most of the manufacturer uses only the retailing system. In this distribution system, the manufacturer supplies goods to the retailer only with sufficient guidance relating to the use of product and so on. Its diagram is as follows:Manufacturer Retailer Customer
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Two levels
A two level channel consist of two intermediaries. In consumer markets, they are typically a dealer wholesaler and retailer, when the manufacturer wants to cover a comparatively wider area of markets they use this channel of distribution. Its diagram is as follows:-
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Manufacturer Dealer Retailer Customer
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Three levels
A three levels channel contains three intermediaries. In a company which wants to , distribute ,its product in a nationalized way \ or in a national level market they have to apply this channel of distribution under such circumstance s dealers are appointed in various regions, subsequently the product is moved to the customers through retailers. Its diagram is as follows:Manufacturer Dealer Sub dealer Retailer Customer
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Multi level
Multinational companies which are having their distribution system in several countries, have to follow a multi channel. It may include four or more intermediaries make the product and reach to the customers. This method is convenient when; the customers are evolved in a huge region its diagram is as follows:Manufacturer Wholesaler Dealer Sub dealer Retailer Customer
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So far as Balaji Wafers is concerned the product of this company is food product. They adopt a multilevel distribution system, which is as follows:Company Carry and forward department Distributors Dealers Retailers Consumers The company is having four distributors and 225 dealers.
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CHANNEL DECISION
Channel decision means the appointment of or selection regarding channel member in an appropriate manner. The first question arising in making a channel design is whether you want direct sales to customer or indirect sales? If the firm chooses the indirect rate, it must be considered that problems such as the number of intermediaries and methods to be employed in motivating and controlling the intermediaries. The selection of these intermediaries begins with the knowledge of ultimate customers their needs and desires for distribution services. The number of intermediaries employed will be determined by customer conveniences and economies of exclusive distribution. The company must choose whether to attempt extensive, selective or exclusive distribution or combination of all the three types of distribution. The decision is made after careful analysis of product, consumer, dealers, company objectives and policies and the conflict with in the channels and any other relevant factors. As relating to BALAJI WAFERS PVT LTD it considers the indirect extensive distribution channel. When the necessity of appointment of dealers and other channel member arises due to large area of market and more demand the company selects a channel member by following ways. 1. They give first preference to the parties who made application in past. 2. If there is no application, the company gives advertisement by appropriate advertising sources. 3. After giving advertisement the application is received in prescribed form by fax, post of nay other communication media, then it is sorted out and eligible application is filed.
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4. In the next stage the application is referred in detail, which is filed in above stage and the channel is selected after making the following inquiry. I. Inquiring through letter II. Inquiring directly. III. Checking the reference form other persons IV. Inquiring the financial position of the applicant V. Knowing the market reputation of person as well as firm VI. Checking the history and background of the firm and inquiring whether it has the vehicle facility or not? VII. Whether they are having the godown facility because it?s must requirement.
5. In the last stage, after appointing dealers deposit is taken and they are introduced about the rules and regulation which channel members have to follow.
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MARKETING MIDDLEMEN
In essence, a channel of distribution include the original producer the final buyer and many middleman either wholesaler or those institution or those institution or individual in the channel, which either take a little to the goods or negotiate of sell in the capacity of an agent or broker. Thus, from the marketing point of view the middlemen and intermediaries are the same. In all commodity markets, whether primary or central, we have lots of middlemen acting as essential functionaries. On the basis of taking titles to goods these middlemen are divided into parts:-
1) AGENT MIDDLEMEN
They are middlemen who do not take a little to goods, but help in the transfer of the title the agent are classified into ? Broker ? Commission agent ? Sole selling agent ? Manufacturer agent
2) MERCHANDISING MIDDLEMAN
These intermediaries take both possession and title to goods in their own name. They are classified as into as follows:-
?
DEALER
Dealers are person who buy or resale product at either retailer or wholesaler basis.
?
DISTRIBUTOR\WHOLESALER
It is a general term used to mean wholesalers.
?
STOCKIEST
This is a wholesaler but takes less active role compared to distributor.
?
RETAILERS
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A merchant or occasionally an agent whose business is selling directly to the ultimate consumer. So far as BALAJI WAFERS PVT LTD is concerned it utilizes the merchant middlemen as a channel member. It includes the following intermediaries whose chart representation is as follows:Company Carry and forward department Distributors Dealers Retailers Consumers
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DEALERS & DISTRIBUTORS &CARRY & FORWARD AGENTS
1) DEALERS AND DISTRIBUTORS
By appropriate procedure the company appoints a dealer. This company has appointed many dealers and distributors all over the Gujarat. The company has 225 dealers and 4 distributors the company gives fixed commission on purchase the rate of commission is 7 to 7.5% there are no fixed quotas or no force to sell the minimum number of products. They provide service to dealers as per the demand and the delivery of the goods is done any where in Gujarat just within 2 days that is within 48 hours the name of distributors and some dealers of the company are :-
?
LIST OF DISTRIBUTORS
3. Mr. Anil Chandani Swami Lilasa Enterprise Sole Distributor Kutch 4. Mr. Rimal Kataria Kataria marketing consultancy Sole Distributor Gujarat
1. Mr. Vallabhbhai Kataria Kataria Enterprise Sole Distributor Saurashtra Gujarat 2. Mr. Paras Kataria Kataria Enterprise Sole Distributor Saurashtra Gujarat
?
DEALERS
1. Mr. Hareshbhai Shanghvi Vimal Agency Junagadh
2. Mr. Mahebub Sorvani Akash Agency Porbandar
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3.
Mr. Pashidbhai Ramis Sales Agency Surendranagar
7. Mr. Mukesh Shrinathji Agency Rajkot
4. Mr. Maheshbhai Mirani Jamini Enterprise Ahmedabad
8.
Mr. Deepak D. K. Sales Agency Rajkot Mr. Sasin Shah Parthil Traders Ahmedabad Mr. Prakash Balaji Sales Agency Veraval
5. Mr. Sanjay &Rakesh Atmiya Sales Agency Rajkot 6. Mr. Ashvin Ashvin Agency Amreli
9.
10.
CARRY AND FORWARD AGENTS
In addition to dealers, company has appointed some carry and forward agents carry and forward agent play a vital role in passing goods from company to dealers. Dealers inform carry and forward agents and carry and forward agents inform the company about the material requisitions, and it is the responsibility of carry and forward agents to provide goods to the dealers. Kataria enterprise is the main carry and forward agent and it is also the marketing consultancy firm for the BALAJI WAFERS PVT LTD which is situated in Rajkot.
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TERMS AND CONDITIONS
The producer must determine the conditions and responsibilities of the participating channel members. The main element in the trade relation mix is pricing, policies, condition of sales territorial rights and specific services to be performed by each party. The BALAJI WAFERS PVT LTD has the following type of rules and regulations to channel members. 1. The delivery of goods must be delivered to every retailer for two times within a week. 2. The order must be placed or registered before 24 hours of route day. 3. The dealers have not been consulted with manufacture as sales the wafers and namkeen of any other company. 4. The dealer must insist to sales all the product of company. 5. They should be appropriately utilizing the allotted advertising materials. 6. When the goods are reach according to order as requirement the payment must be made by bank draft of by cash. 7. Order should be registered regularly. 8. The price of the product should be taken as per the price offered or fixed by the company at some destination. 9. Every dealer must be submitting a retailers list of his allotted area regularly to company, so that the company takes a decision regarding the advertising and area. 10. The marketing must be made only within the boundary of area allotted or fixed by the company. If channel member breach any of the above rules and regulation of the company can take back a dealership. Generally
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this kind of deal may not be arising. In case this kind of problem arise then company first give chance to rectify the error and take appropriate decision regarding dealership.
COMPENSATION TO CHANNEL MEMBERS
The channel members should be given certain compensation for the service they provide to the company of course, it works as a source of motivation to channel members. If proper and fair compensation is provided to channel members then the intermediaries will work to its utmost efficiency and good morale. Compensation is made of several elements a fixed amount a variable amount, expenses and price benefit and salary that give to middlemen some fixed stable income. The variable amount, which might be commission or bonus, is based on sales performance. So far as BALAJI WAFERS PVT LTD is concerned this company gives the fixed salary to its representatives. At the end of the year company also provide bonus and other facility like gift and articles, wafers and other food product at concession rate, first aid facility etc. In case of dealers, there is no requirement of any kind of compensation because the company not imposed any kind of force to sale fixed quota or achieves a particular target. The reason is that the company also gives the fixed commission on the purchase quantity whether the quantity is large or small. The company provides the goods to its dealer directly within 48 hours after arriving or received the order. The company also provides the best quality and fresh goods in very best packing to dealer at right time and right place as per the requirement.
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MOTIVATION TO CHANNEL MEMBERS
Intermediaries must be continuously motivated to their best job. The terms that lead them to join the channel provide some motivation stimulation channel member to top performance must start with understanding of the intermediary?s needs and wants. Channel member are very important part of the company without channel of distribution, perhaps it is impossible to reach the produced goods final consumer properly. Therefore the company can sell its product in the market by their channel member with effectiveness and efficiently. That is why every company must be motivated their channel members by different way like:1. Higher margin 2. Special allowance 3. Sales contests etc. Related to BALAJI WAFERS PVT LTD it provides positive motivation to their channel member y following way:1. The company also motivate to their channel member by seasonal scheme 2. Motivated by providing calendars high lighting BALAJI?s product 3. They also arrange the dealer?s diaro or dealers meeting in a year at some destination. 4. Company also motivated to their dealers by accepting or receiving the advice forms them for decision making work. 5. The company also motivates its dealers by solving their problem and fulfills their requirement. 6. Company also does advertisement by wall painting and by other sources on the other hand, company gives stickers, light board, banners, kitchen, metal board etc so dealers display it and increase the sales very easily. And also customer aware about the dealers shop. 7. The company also provides the guarantee of 100% replacement from customers; company solves the conflict 55
and replaces the fresh and qualitative goods. In this way dealer have confidence to solve their customers problem.
EVALUATION OF PERFORMANCE OF CHANNEL MEMBERS
The producer must periodically evaluate middlemen performance against each standard as sales quota attainment, average inventory level, customer delivery time, treatment of damaged and lost goods, co-operation in promotion and training programs and middleman services owned to the customer. The producers will discover an occasion that too much is being paid to particular middleman for what they are actually doing. In BALAJI WAFERS PVT LTD it evaluates the performance of channel by market survey, direct contracting with channel member to know the demand fluctuation and also by retailers and consumer opinion. The company evaluates the performance of channel member with following objectives:1. Whether services is regularly provided 2 times with a week to retailer or not. 2. To know the behavioral aspect of dealers with company as well as with the retailers. 3. To know the name and fame of the company in the public mind. 4. To know the market condition of the company?s product. 5. To know whether the dealer follows the rules and regulation contracted with company at the time of taking a dealership. 6. To know the information regarding dealers about how they sale other products of company. 7. To know whether the dealers utilize the advertising sources provided to them or not. Thus all the objectives are considered at the time of evaluating the performance of the channel member by above prescribed way.
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CHANNEL CONFLICT AND SOLUTION
No matter how well channel are designed and managed, there will be some conflict, if for no other reason then the interest of independent business enterprise do not always coincide. It is important to distinguish the different courses that might provide channel conflict. Some courses are easy to resolve other more conflict. A major course is goal in compatibility e.g. the manufacturer may want to achieve rapid market growth through low price policy. The dealers, on the other hand may perform to work with high morale and loyalty. This is difficult to solve. The conflict might arise because of the great dependence of the middlemen on the producer. Some times conflict arises on price decision point and some times conflict arises on supply of goods and services provided by dealers after selling the products. During my visit in BALAJI WAFERS PVT LTD I never see any kind of conflict or problem in channel of distribution. It is possible only because the company provide speedy and supply of goods according to needs of the channel member. There is not any kind of pushing system for instance, if dealer purchase particular product then other product must be purchased in some quantity. In case if any problem arises among channel as regarding services, supply of goods etc and any complain arrived from customer then the company solves this conflict and complaint by following manner. 1. First of all finding what kind of problem is arising. 2. In second stage the problem is analyzed as:i. Why this problem arises? ii. By whom this problem arises? iii. When and where this problem arises?
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3. In the next stage, after analyzing the problem company contacted to responsible person and aware them about this problem and give advice to solve that kind of error and also give chance that this kind of conflict will not arise. 4. In next stage after given the chance to rectify the error if channel member not make any kind of solution or arrangement according to the situation company takes back dealership form those people. 5. If the dealers have any problem about the company and other miscellaneous problem then it is solved in dealer meeting, which arrange in a year at some destination. 6. If the channel members have any other problem then company itself makes contact direct to those channel members and tries to solve their problem in best possible manner.
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ADVERTISING THROUGH CHANNEL
The main purpose of every commercial organization is to promote sales because it is only way to commercialize the product. That is why advertising is a main and important tool to promote the product. Advertising is one of the major tools of companies use to direct persuasive communication to target buyers and public. We define advertising as:“Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor.” Advertising is a form of mass communication. A sponsor who wants to communicate about his product or service to his customers pays it. They are different media for advertising the product, they are:-
1. Print media which involves :i. Newspapers ii. Magazines iii. Business books
2. Outdoor publicity which involves
i. ii. iii. iv. v. vi. Posters Wall paintings Electric sign board Sky writing Sandwich man Vehicle advertisement
3. Direct mailing postal advertising which involves
i. ii. iii. iv. v. vi. Leaflets Sales letter or post cards Folders Booklets Catalogue Brochures
4. Audio-visuals advertising which involves:i. Radio advertising ii. Television advertising 59
5. Film advertising which involves:i. Documentary advertising ii. Advertising film iii. Sponsored advertising.
Different media are selected depending upon the following factors:1. The financial allocation for advertising. 2. The nature of product and demand for it. 3. The type of products, their location and other characteristics. 4. The nature of competition 5. Cost of media, cooperation and promotional aids offered by media circular. Many companies allow to dealers to advertise the product on behalf of the company. As far as BALAJI WAFERS PVT LTD is concerned it advertises its product by different media as:1. 2. 3. 4. 5. 6. Stickers Light board Banners Kitchen Metal board Wall painting etc.
BENEFITS TO DEALERS BY ADVERTISING
1. Easy sale of product is possible since consumer is aware of the product and its quality. 2. It supplements the selling activities 3. The dealers a like because they need not spent anything for advertising of already a well advertised product share the reputation created. 4. It ensures more economical selling because selling overhead is reduced. 60
5. It enables them to have product information.
QUESTIONNAIRE
1. What is the level of channel of distribution? 2. How the channel decision taken? 3. Who are the marketing middlemen of the company? 4. Who are the dealers of the company? 5. Who are the distributors of the company? 6. Who are the carry and forward agents of the company? 7. What are the rules and regulations for channel of distribution? 8. What is the compensation to channel member? 9. How do you evaluate the performance of channel member? 10. How do you deal with the channel conflict? 11. In which way do you advertise through channel?
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PHYSICAL DISTRIBUTION SYSTEM
Sr. No
Particulars
Page No
1
Concept Of Physical Distribution System
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2
Objective Of Physical Distribution System
67
3
Cost Of Distribution
68
4
Order Processing System
69
5
Inventory Control
70
6
Ware Housing Facility
71
7
Transportation
72
8
Questionnaire
73
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CONCEPT OF PHYSICAL DISTRIBUTION SYSTEM
The marketing process is not entirely simply by creating superb product and by creating a customer by aggressive salesmanship delivering the product to the customer at the right time and place is an equally important function in marketing. In the process of marketing this vital function is called physical distribution. A critical element in the distribution strength involves the actual movement of the goods produced after their production and before their consumption on before they reach in the hands of the final consumers. This function includes various activities which are as under:1. Inventory control 2. Material handling 3. Packing 4. Warehousing 5. Transportation 6. Insurance 7. Banking services etc. The producers and dealers perform these activities. Efficiency in the physical distribution significantly influences a company?s channel for the marketing success.
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OBJECTIVE EFFECT OF PHYSICAL DISTRIBUTION SYSTEM
Physical distribution system also effects the decision on channel of distribution. If the product requires storage, it should be sold out through dealers who own their own godown or storage facilities. If the company decides to manage their own warehouses. What type of transport facility should be arranged to carry the goods to the warehouses of its own or of middlemen. These factors should be considered while taking decision on channel of distribution. In BALAJI WAFERS PVT LTD the raw materials are to be supplied by the trucks from the various sources. After making various products according the demand or orders, goods are supplied to carry and forward and distributors goods supply to dealers and the customers by rickshaws or by truck. New method and technique have been developed that make the physical distribution challenging task. The activity of physical distribution is necessary in the modern marketing due to, 1. 2. 3. 4. 5. 6. To minimize the cost of transportation To minimize the cost of handling To control over inventory To minimize customer services To make goods available to customer at the right time and place. To follow the good order of processing system.
Thus the development of physical distribution facility has made the production feasible through out the year at lower cost of production and distribution.
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COST OF DISTRIBUTION
For facilitating the flow of distribution of goods from producers to consumers appropriate channel of distribution is very important for smoothly running of channel of distribution, proper maintenance, implementation and control, efficient handling should be needed so effective and efficient handling of channel of distribution some should be incurred. Thus every company requires allocating some portion of total cost for channel of distribution to efficient handling at minimum cost. Sot far as BALAJI WAFERS PVT LTD is concerned; it has an efficient channel of distribution. It is provided better service and best quality to its ultimate customers, which is most indispensable for capturing the more market with full demand. Therefore, to handling the channel of distribution effectively and efficiently, this company allocated 13.5% of the total cost of production. Moreover it is well known that this company provide the services to its dealer with in 48 hours from receiving the order and dealer provides services to its retailers 2 times within a week
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ORDER PROCESSING SYSTEM
Order processing is considered as the key to customer service and satisfaction. Order processing includes receiving, recording, filing and assembling of product for dispatch. The amount of time required from the date of receipt to an order up to the date of dispatch of goods must be reasonable and as short as possible generally order cycle time must not exceed eight day. Markets are now using a computer system to speed up order handling. A firm must have standard processing of order, this procedure should also include grand of credit invoicing and collecting of amount. Order processing procedure affects customer service level in two ways:1. It affects order time (interval between two orders) 2. It affects the consistency of uniformity of delivery time. Generally customer is interested much more in the consistency of delivery time that is assured delivery within a fixed period always. As regard to “BALAJI WAFERS PVT LTD” it has very efficient ordering processing procedure. It has receiving order from channel member and directly from retailer and customer also through post, fax, telephone, email and other communication media. After receiving order it is recorded and filed than goods are dispatched to its dealers according to his order with orders of other customer of its dealers according to his order with orders of other customer of its market area who directly send the order to the company. This company delivered the goods to its dealers only within 48 hours thus according to my point of view, this company primarily interested in prompt, punctual, safe and reliable delivery services.
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INVENTORY CONTROL
Inventory is the physical stock of items which organization keeps hand for efficient and continuous running of a production it reduces investment in inventory but then also production should not suffer by that decision. It consist of management of raw materials components parts finished goods, semi-finished goods etc. The proper procedure of system for controlling over inventory is known as inventory control generally there are following type of standard in inventory control. 1. 2. 3. 4. The maximum The minimum The ordering point The standard order
So far as BALAJI WAFERS PVT LTD is concerned it has a very good inventory control system. It has followed an ordering point as standard of inventory control. It purchases a raw material form various places according to need. If there is excess in raw material then it is stored in store room, which is situated in location area of the company. However generally there is no more excess raw material or finished goods than the requirement. Because the raw material are purchased according the demand of the market.
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WAREHOUSING FACILITY
Storage warehouses are fixed facilities where we store our inventory usually for a longer period. Warehouse creates time utility and can stabilize price over a certain period. It can regularly market supplies according to changing market demand time wise. We have private warehouses owned by user. There are also public firm who sell storage space and professional firm who sell storage space and perform many warehousing function on reasonable commission of fee. In BALAJI WAFERS PVT LTD the main raw material is potato and in the market seeing the more demand of potatoes the company purchases it in advance in required quantity because all the raw materials are food items in nature there are chances of being affected by the natural factors like heat, moisture, humidity which is harmful to these raw materials. Therefore they are stored in such a way in required quantity that they don?t get damaged from the effects of climatic and other atmospheric changes. The company is not having its own warehouse they utilize the public warehouse for getting the required raw materials in time for instance it has a small godown within the company promises which has the sufficient stock stored for continuous production process.
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TRANSPORTATION
Marketers need to concern with their company?s transportation decision transportation choice will affect the product pricing, on time delivery, performance and the condition of the goods when they arrive, all of which affect the consumer satisfaction so transportation policy of the company should be such which ministers the companies transportation cost which is included in the total product cost of the unit produced. So it should be such which minimizes the total product cost and at the same time able to maximize the customer satisfaction by providing right time delivery. There are many modes of transportation 1. 2. 3. 4. Roadways Seaways Airways Railways
BALAJI WAFERS PVT LTD uses only roadway transportation for the movement of raw materials before and after production process for transporting goods to company and to customer or its channel member and its ultimate customer through dealers.
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QUESTIONNAIRE
1. What is the cost of distribution? 2. How does the order processing system works? 3. How does the inventory control managed in the unit? 4. Do you have a warehouse of your own? 5. What kind of transport facility the company is using?
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FUTURE PLAN
Future plan means the company forecasts about its future goals and tries to achieve them at minimum cost and in the better way. Without any future target any company cannot run for long period. Though future is always uncertain but we can make it possible as our desire by making various creative efforts. BALAJI WAFERS PVT LTD has achieved great success in establishing good brand image, prestige and reputation over the consumer market. BALAJI WAFERS PVT LTD located recently a new plant with high technology and ultramodern computerized in Rajkot at Kalawad road. The company is planning to sell its product at other states like Maharashtra, Rajasthan, and Goa etc.
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CONCLUSION
BALAJI WAFERS PVT LTD is the adventure of Gujarati Family. It is located at GIDC Rajkot and almost all the cities of Gujarat they have their dealers. In this company the internal relation between the workers and management are very well. All the workers and management behave with each other as family members. It is the plus point of the company. The management of the company is well planned and very effective. On the point of completing this visit report I am concluding that BALAJI WAFERS PVT LTD is very well developed, well organized and progressive company. My heartily best wishes are always with them for their great sparkling and bright future.
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SWOT ANALYSIS:The following are the strength, weakness, opportunity, and threats of BALAJI WAFERS PVT LTD:-
?
STRENGTH 1. Balaji is an established brand in region of Gujarat hence it
enjoy very good brand name.
2. Balaji has a strong distribution network in Gujarat. 3. Balaji is the first company to launch the wafers in Gujarat
market.
4. Company gives healthy profit margin to retailers so they are
also very satisfied with company?s product. the company.
5. To maintain quality at any cost is the first and strong object of 6. Balaji having the one and only fully automatic plant for
production in Gujarat.
7. Balaji has a long experience in relating region of Gujarat.
Hence it can use them as an advantage to establish its leaders in the market.
?
WEAKNESS
1. Balaji does not aggressively advertise on T.V. or in other media. 2. In this company there is no facility of own warehouse.
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?
OPPORTUNITY
1. Balaji is a well known established brand in wafer market in Gujarat. Hence it can use its brand name further established itself in the national market. As the real income of the people increases day by day, there are lots of avenues that can be explored by the company to attract potential market in the urban, semi urban and rural areas. The company is now launching the products in Maharashtra state.
2.
?
THREATS:-
Balaji switching amongst consumer has increased due to new entrances offering various products in the market so it may be possible that the regular customer of BALAJI start trying to buy other brands of wafer. Hence the company must keep upgrading its product list to suit and match the faster and ever changing demand of customer and to give them maximum satisfaction.
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FINDINGS AND RECOMMENDATIONS:? FINDINGS
1) AVAILABILITY OF PRODUCT
In relation to this question all the retailers replied positively, which shows 100% availability of all the products of BALAJI on time without any delay.
2) POPULARITY OF THE PRODUCT
When I asked about customer?s preference or about the product highly demanded by the customers, the retailers said that a. b. c. d. Highest demand is for potato chips Second is for Farali Chevdo Third is for namkeens like ratlami sev etc. Fourth is for sing.
3) OPTION FOR UNSOLD GOODS
For unsold goods dealers should provide option like money back or changing of the stock etc. BALAJI dealers also give the option of replacement it is one of the good techniques of promoting the product. All the retailers got replacement facility however in reality most of the retailers said that there hasn?t been the case of unsold stock.
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?
RECOMMENDATION
BALAJI WAFERS PVT LTD is profit making company. It works smoothly since it is established there the company follows all the principles of physical distribution and also follows standard ordering processing system and it has also control the inventory by appropriate department. The distribution channel of the company works efficiently and effectively towards achieving the goals with full of confidence and cooperation. Therefore there is no need for recommendation to the company but I feel that if the company starts advertising on large scale on television media it can expand the business from Gujarat to whole of nation and after that even at international level because the quality is high of the product so I see a bright future of this company in India. All my best wishes are with them for sparkling future.
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BIBLIOGRAPHY
1) BOOKS
? Marketing Management ? Philip Kotler ? Marketing Management ? Marketing Management
?S.A. Sherlakar. ?Verma and Agarwal
2) REPORTS
Some old reports for reference.
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LIMITATIONS OF THE REPORT
1. The following are the limitations of my project report 2. The report is prepared for education purpose 3. Much information has been taken from secondary sources; therefore it is quite possible that it may have some misleading information. 4. The report is affected by personal influence. 5. It is not possible to include each and every information of the company in the report. 6. There may be printing mistakes in the report due to oversight.
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doc_631836896.docx
Balaji Wafers Pvt Ltd
1
AN INDUSTRIAL TRAINING REPORT ON BALAJI WAFERS PVT LTD RAJKOT WITH SPECIALISATION IN
2
CHANNELS OF DISTRIBUTION
INDEX
Sr. No
1 2 3
Particular
General Information Marketing Department Channel Of Distribution A ) Channel Of Distribution B) Physical Distribution
Page No
10 30 42 43 65 74 75 76
4 5 6
Future Plans Conclusions SWOT Analysis
3
7 8 9
Findings And Recommendation Bibliography Limitations Of The Report
78 80 81
GENERAL INFORMATION
Contents Sr. No
1 2 3 4 5 6 7 8 Introduction Company Profile Mission History And Development Corporate Goals And Objectives Key Persons Of The Company Size And Form Of Organization Organization Chart
Particulars
Page No
11 12 13 14 16 17 18 19
4
9 10 11 12 13 14 15 16
Time Keeping System Factors Of Location Facilities Given To The Employees Turnover Of The Company Products Of The Company Chart Of Production Process Research Methodology Questionnaire
20 21 23 24 24 25 26 29
INTRODUCTION
For preparation of an industrial training report it is very important to understand the general matters of the company without the information of such matters the report it is very important to understand the general matters of the company. Without the information of such matters the report is incomplete as it does not provide a perfect knowledge of company these type of general matters are considered in the section of general information. BALAJI WAFERS PVT LTD produces ready to eat food items now a day?s people are fond of eating ready to eat food and BALAJI name is very popular in Gujarat and saurashtra. It has the one and only fully automatic plant in Gujarat the main objective of the company is to provided best quality product
5
at the cheapest rate we can also say their mission is quality first coast second the market of the product is large and comprehensive.
COMPANY PROFILE
Name Of The Company Head Office BALAJI WAFERS PVT LTD BALAJI WAFERS PVT LTD Vajdi(Vad), Kalavad Road Taluka Lodhika Rajkot 360003 BALAJI 1982 Food Item(Snacks) 1200 Kgs Per Hour Size Form 6 Medium Scale Unit Private Limited
Trade Mark Year Of Establishment Nature Of Product Production Capacity Size And Form Of Company
Slogan
Any Time Crunchy All Time Fresh Corporation Bank 0281-2387132\2385744 0281-2389300 [email protected] Www.Balajiwafers.Com
Bankers Phone No Fax No E-Mail Address Website
MISSION
1. To provide ultimate value satisfaction to its customers in terms of quality commensurate with price through a. b. c. d. Better quality Excellence in technology Speedy service Management expertise
2. Too much preferred organization for both its future and present a. b. c. d. Employees customers\suppliers Related agencies and society at large Share holders
3. Continue its march towards program and retain its front line BALAJI a symbol of quality
7
8
HISTORY AND DEVELOPMENT
History is the mirror of the past it shows the glorious efforts done by the promoters of the company in the past the history speaks of the past performance about the financial performance, development of the company and the present situation. Balaji wafers has also an interesting history behind the establishment Mr. Bhikubhai the chairman and Mr. Chandubhai the managing director of the company worked very hard to reach at the current position. The history of Balaji Wafers begins with the era when Chandubhai and Bhikubhai were working on contract basis for supplying the wafers to the canteen of astron theatre at Rajkot city. Shri Meghji Virani, Bhikubhai Virani, Chandubhai Virani and Kanubhai Virani are the sons of Shri Popatbhai Virani of Dhundhoraji village of Jamnagar district. But at that time they got the raw materials from the 3rd party and than they manufactured and supplied the same to the canteen of Astron Theater but there were a problem of short as well as delay in supply of products on time. As these kinds of problem can lead a business to peril and can ruin it something had to be done in these regards as an ultimate solution to all the problems they decided to manufacture wafers on their own and supply the same to canteen and thus the foundation of Balaji Wafers was first setup but without any brand name in 1982. Since the taste and quality was excellent, demand for their wafers was increasing day by day to pace with this increasing demand of wafers in market they started producing wafers in bulk without any compromise in quality and taste of the products they acquired a small place with very limited investment with indigenous frying method thereafter a semiautomatic plant was established with a production capacity of 200kgs per hour they started selling their product initially in ordinary packing but after upgrading the technology they used decent packing to attract cream market and thus got more market share in the food market. This development had lead BALAJI from normal wafers producer to BALAJI WAFERS PVT LTD in 1990.
9
DEVELOPMENT
Development means what the company had done it the past and how much overall efficiency has increased till today Balaji Wafers has come long way since establishment and has firmly established itself as a leader in high quality product and has made remarkable improvement both in services and quality of products. The initial investment of the company was only Rs. 25000 in recent stage it has assets of Rs. 5 crores and will be increase in future the company conforming with many hardest and make a progress and development which may be described by following ways. 1. It started a production in simple packing and without brand name and satisfied the demand at canteen since, the quality is best the demand of the product was increased. 2. This development had lead BALAJI from normal wafer producers to BALAJI WAFERS PVT LTD in 1990 up to now BALAJI was producing the products manually. 3. After then to meet the demand they started manufacturing the product in semiautomatic plant the production capacity of this machinery was 200 kgs per hour. 4. After then they adopt a highly techniqued fully automatic plant which is only one in whole of Asia the production capacity at this plant is 1200 kgs per hour. Recently they set up a huge fully automatic plant for production as well as nitrogen packing for long term preservation of the products.
10
CORPORATE GOALS AND OBJECTIVES
Company has its own culture and identity in business world it is effort of the company to maintain identity and to be no 1 in global market company has fixed its goals and laid down some certain mission to achieve them.
CORPORATE GOALS
1. 2. 3. 4. To ensure quality at all stages. To increase productivity and market share of the firm. To increase the profitability of the firm. Provide speedy services and satisfies the need and wants of the society. 5. To keep a slim and trim but fully satisfied management team to operate faster and to achieve higher levels of business and growth effectively. 6. To effort foreign customer and export the product in near future.
OBJECTIVES
Obviously primary objective of any company is to profit maximization but in present competitive marketing approach profit maximization should not be one and only goal but it is a short term goal every company wants to increase prestige market share etc so wealth maximization becomes important goal of company which is also long term goal of the company.
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KEY PERSONS OF THE COMPANY
Mr. Bhikubhai Virani Mr. Chandubhai Virani Mr. Kanubhai Virani Mr. Keyur Virani
Chairman Managing Director Technical Director Research And Development Managed General Manager Marketing Manager Sales Representative
Mr. Hitesh Virani Mr. Nayan Tank Mr. Jay Sachdev
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SIZE AND FORM OF THE ORGANIZATION
SIZE
Industries can be categorized on the basis of capital invested in it there are three categories. 1. Small scale industry. 2. Medium scale industry. 3. Large scale industry. So far as BALAJI WAFERS PVT LTD is concerned it can categorized as medium scale industry because as per new industrial law the investment limit prescribed by government for small scale industries is 5 crores. Investment about more than 5 crores is called medium scale industries BALAJI WAFERS PVT LTD has invested more than 5 crores.
FORM OF ORGANIZATION
According to John Piffiner “Organization is an essentially a matter of man to man job to job and department to department.” There are different types of organization like 1. 2. 3. 4. 5. 6. Line organization Staff organization Line and staff organization Committee organization Project organization Matrix organization
Out of all these Balaji Wafers follows line and staff type of organization structure line and staff organization means to prepare plans to take vital decisions and to implement them effectively all these function cannot be performed simultaneously by a single person hence there emerged a system where in line officers received advice from the staff experts the organization structure is as follows.
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ORGANIZATION CHART
Chairman
Managing director
Technical director
Technical staff Production manager Marketing manager
Area wise salesmen Technical workers Packing supervisor
Working staff
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TIME KEEPING SYSTEM
Time is very important for any business unit any business unit as from the title time keeping system we can say that under this system the arrival and exit time of the employees is noted Balaji wafers is having mainly a general shift and in between they have a lunch break of one hour which is mentioned as follows.
General shift
8am to 5 pm
Lunch break
12 pm to 1 pm
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LOCATION FACTORS
Location plays an important role in establishment of a new unit every business entrepreneur of a business unit must give full consideration to the suitable location for enterprise because success or failure is highly depended on the location for enterprise because success or failure is highly depended on the location of the unit optimum location point is expected to give the lowest unit cost of production as well as of distribution and hence it can be most profitable for the business an entrepreneur must be choosing an ideal location at the time of launching the enterprise in other words all the pertinent factors influencing location will have to be taken into account and weighed very carefully. So far as BALAJI WAFERS PVT LTD is concerned it requires potatoes, edible oil , iodized salt, bananas , mungdal, chanaldal, vatana etc in the production of various type of product such raw materials available at Rajkot very easily main reason for such location of the unit are as follows:
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AVAILABILITY OF RAW MATERIALS
The most important factor, which is directly affected to the product, is the availability of raw material for producing the product. These respective product and its raw materials of Balaji Wafers are:-
products
Potato Wafers Farali Chevdo Mungdal
raw materials
Potatoes MungDal
ChanaDal
ChanaDal
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Vatana
Peas
Peanuts Masala Sing Sing Bhujiya
Roasted Peanuts
Besan Groundnut
Ratlami Sev Banana Wafers
Besan , Mathdal Banana
In addition to these iodized salt edible oil, chilly powder, black pepper etc all the raw material is required so whichever material is easily available at nearest place. Potatoes are purchased from Disa, Ahmedabad and Surat through dealers as per requirement.
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ELECTRICITY:-
The availability of electric power is very essential for any unit where production is done 24 hours continuously. BALAJI WAFERS PVT LTD gets electricity from G.E.B. and in absence of G.E.B. light it can be operated by their own generators.
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LABOR:-
For running industry main essentially is the labor because without man any work is not start so, man is focus of any industry essential supply of labor is in required quantity is also taken into consideration while establishing an industry if the company can find skilled and experienced labor at minimum wage rate it can reach to its organizational goals in time in Rajkot city both skilled and semiskilled labors are available the level of education is also high in Rajkot.
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TRANSPORTATION:-
For every industry transportation facilities have much important to run their work regularly and smoothly as to get raw material quickly as well as to supply their finished goods to the market. Rajkot has an all weather part so there is no problem of transportation for BALAJI WAFERS PVT LTD moreover Rajkot has all the facility of transportation except seaway like railway airway and road way etc it is well known that railway of Rajkot has the direct connection with the national railway line.
FACILITIES GIVEN TO THE EMPLOYEES
It is the duty of any unit to provide beneficiary services to the employees of the unit.Balaji Wafers also provides many basic welfare facilities to the employees. This company provides the following beneficial facilities to the employees undertaken to the provision of the law. Facilities given to the employees are as follows:1. 2. 3. 4. 5. 6. 7. 8. Bonus is paid every year. It also provides transportation facility. It also provides refreshment facility. At the time of any accident during the course of employment the company provides first aid and hospital expenses. Company also provides it s product at a concession rate to employees. At the time of any family function of the employees company provide several facilities like gift articles etc. Music and song at production place. Lunch is also given to the employees at a rate of Rs. 5 per dish.
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TURNOVER
Turnover refers to total annual sales turnover so far as BALAJI WAFERS PVT LTD is concerned its annual turnover is around 60 crores for all products. Now let us classify the turnover according to wafers and namkeen. Wafers 85% Namkeens 15%
PRODUCTS OF THE COMPANY
The product is the most important element by which any firm can prove its efficiency and improvement of quality product is a symbol of the business firm. BALAJI WAFERS PVT LTD is engaged in the production of food item they produce 12 different types of snacks items which are as under:1 Potato Wafers. 2 Masala Wafers. 3 Banana Wafers. 4 Masala Banana Wafers. 5 Farali Chevdo. 6 Peanuts. 7 Ratlami Sev. 8 Sing Bhujiya. 9 Mung Dal. 10 Chana Dal. 11 Vatana. 12 Masala Sing.
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CHART OF PRODUCTION PROCESS
The company has a fully automatic plant especially for the production of wafer the capacity of this plant is nearly 1200 kgs per hour the production process of wafers is as under in short. Raw material Washing Boiling Frying Ingredients Packing In case of namkeens there is a special boiling machine the process of different namkeens are as follows:Boiling Frying Ingredients Packing
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RESEARCH METHODOLOGY ?
RESEARCH
Research is the application of human intelligence in systematic manner to a problem. It may minimize the total uncertainty by intelligence use of the most reliable data available in the organization. According to P.V. Young we may define research methodology as scientific undertaking which by means of logical and systematized method, aims to discover new facts.
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1. 2. 3. 4. 5. 6. 7. 8. 9.
STEPS IN RESEARCH METHODOLOGY:Selection or choice of research problem. Understanding the research problem. Collection and review of knowledge of written material. Selection of the most promising method of solution. Listing and selection of different tools of data collection. Execution of research plan. Coding and processing of research data. Preparation of the brief report. Preparation of the final report.
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SOURCES OF DATA
There are different sources of collecting data before deciding the sources to collect the data one has to make a proper planning of investigation and purpose of inquiry following are the sources of collection of data.
Sources of data
Primary sources
Secondary sources
Internal sources
External sources
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INTERNAL SOURCES
Such type of information is always available in books of organization e.g. sales, production, salary and wages etc.
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EXTERNAL SOURCES
This type of information is collected from outside agencies hence it is called data collected from external sources primary data are original and first hand information while secondary data are second hand information already prepare or collected in the previous research.
Methods of collecting primary data
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1. 2. 3. 4. 5.
Direct personal interview Indirect personal interview Information from correspondence Mailed questionnaires Questionnaires to be filled by the enumerators
METHOD FOR COLLECTING SECONDARY DATA
1. Government publication 2. Publication of international organization (World Bank, U.N.O, I.M.F etc) 3. Semi official publication 4. Reports of committee and commission 5. Private publication 6. Magazines and journals and newspapers 7. Research institutions 8. Annual report of joint stock companies My attempt to research was quite simple and straight forward first of all the list of questions was prepared by me under guidance of our professors an then I asked many questions regarding advertising to marketing manager the main advantages of this method are that accurate information can be collected and personal conduct becomes possible.
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QUESTIONNAIRE
1. What is the history of the unit? 2. How much it has developed till now? 3. What was the year of establishment? 4. Where is its head office? 5. Who are the bankers of the unit? 6. What is the nature of the product? 7. What is its production capacity? 8. What is the size and form of the unit? 9. What are the goals \ objectives and mission of the unit? 10. What is the time keeping system? 11. What are the reasons for the location of the unit? 12. What are the facilities given to your employees? 13. What are the products of the company and what is its total turnover? 14. What is the production process of the products?
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MARKETING DEPARTMENT
Sr No
Particulars
Page No
31
1
Introduction 32
2
Organization of marketing Department 33
3
Product Planning 34
4
Pricing Policy 36
5
Target Audience And Competitors 37
6
Advertisement 38
7
Channel Of Distribution 39
8
Marketing Research 40
25
9
Branding, Packing ,And Slogan 41
10
Questionnaire
INTRODUCTION
The functioning activity of marketing department starts when the product reaches the market form the production unit Phillip Kotler defines market as a market is an area for potential economics. The shortest definition of marketing is meeting the customer„s needs profitably the company should have a very efficient and excellent marketing department which tries to provide maximum satisfaction to the customers while having reasonable profit on the other hand. In BALAJI WAFERS PVT LTD marketing has also vital importance its marketing department is very systematic the marketing manager Mr. Nayan tank is very hard working and experienced person. He operates marketing department and all the marketing activities of BALAJI WAFERS PVT LTD.
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ORGANIZATION STRUCTURE
Marketing is essential for all the organizations marketing is the tool by which an industry can earn profit by selling product. It is true, nothing happens I our economy until somebody sell the product “as seeing the importance of marketing its organization structure must be well prepared the flow of authority is from upward to downward and the flow of responsibility is from down ward to upward be necessary. Chairman Managing directors Director Marketing manager Area wise sales man
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PRODUCT PLANNING
Product planning means the planning for the product that is to decide what type of production is to be produced or what needs or requirement the product has to satisfy and for whom the product is meant. Product planning is an important concept for any industry. Every industry must plan its products as which result profitable for the company and satisfy the consumer wants So far as Balaji Wafers is concerned it mainly produces 1. Potato Wafers 2. Masala Potato Wafers 3. Banana Wafers 4. Banana Masala Wafers 5. Farali Chevdo 6. Ratlami Sev 7. Sing Bhujiya 8. Chana Dal 9. Peanuts 10. Mung dal 11. Vatana 12. Masala Sing It plans its product in order to maintain existing customers in fact BALAJI WAFERS PVT LTD does not require much of product planning it has a very good marketing network and also a very good market for its product.
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PRICING POLICY
Out of 6 Ps of marketing mix pricing is one of them price of the product is main element in any organization. Therefore, decision regarding price is the most vital decision for a marketing manager. Right price can promote sales of the company. While wrong price affects the sales of the company largely, so mixing of price is more important than all other tasks. Pricing is an important element of the marketing department. a company has to setup the pricing policy considering so many factors such as demand, competition, government interference etc even company has its own pricing policy. BALAJI WAFERS PVT LTD is in concerned the company tries to keep least prices than competitors price lower prices are there because of their minimum advertisement cost. The company has adopted retail pricing policy under the policy the company binds the retailers to sale the branded goods at the fixed rate decided. The company gives fixed commission to dealers the catalogue of price is given as follows:-
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PRICE LIST
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TARGET AUDIENCE AND COMPETITORS. ?
TARGET AUDIENCE
The target customers means the target is fixed based on level of customer?s age, sex, needs, wants, demand, competition, and changing fashion of the society. As far as Balaji Wafers is concerned the market of the company is evolved and large the product of “BALAJI" is a food product so the main audience of the company is children and young people.
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COMPETITORS
The following are the competitors of BALAJI WAFERS PVT LTD 1. 2. 3. 4. 5. Ruffles Lays Uncle Chips Samrat Laher Kurkure
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ADVERTISEMENT
Advertisement is an important aspect in marketing. It is concerned with the preparation of visual and oral messages for making people aware of and favorably inclined towards product, brand, service, quality and institution and so on. The ultimate aim of advertising is to contribute towards increase sales and to increase profit. It is a specialized technique of popularizing the product and is indispensable in the marketing of goods. Advertising is a powerful promotion tool to establish and retain brand loyalty, whether a company is introducing new produces or expanding the existing one. Advertising is inevitable in this modern competition market. It can be done through various ways. So far as “BALAJI” is concerned it also spent a good amount on advertising. It makes advertising by following ways:1. 2. 3. 4. 5. 6. Lighting board Banners Kitchen Calendar Wall painting Wall clock
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CHANNEL OF DISTRIBUTION
Channel of distribution is the route or ways through which goods or services move from the place of production to place of consumption. In modern marketing so many channel of distribution exist. Channel of distribution have a vital role especially in the distribution of consumer goods. The most innovative product offered as an attractive price world is of no use unless there is as efficient distribution system. So far as Balaji Wafers is concerned its product is a consumer product so it mainly sale the product directly to its dealer?s and distributor not to consumer. However it has also a big distribution network at various places in Gujarat In case BALAJI WAFERS PVT LTD transportation and dispatch activities are performed by carry and forward agencies. The names of carry and forward agencies and their areas are given below
? Kataria enterprise:? Suarashtra north Gujarat and south Gujarat
? Swami Lilasha enterprise:? Kutch
? Atmiya agencies:? Rajkot & nearest area There are total 175dealers of BALAJI WAFERS PVT ltd in all over Gujarat we can show the channel of distribution of the company is as follows Company Carry and forward department Distributor Dealers Retailers
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Consumers
MARKETING RESEARCH
Marketing research is the systematic collection analysis and separation of idea and reading and relevant marketing situation facing the company it is highly necessary in this modern competitive age. A company can conduct marketing research in different ways company can hire a marketing research firm also however, most of the large companies have their own marketing research department because in this competitive age no firm can remain careless about a single change in market. BALAJI WAFERS PVT LTD has its own research and development department which is handled by Mr. Keyur Virani marketing research manager prepares actual reports about the market and submit the marketing research manager and to understand the problems regarding marketing. Research is conducted indifferent marketing factors like product and service, sales, advertising, pricing, distribution packing etc.
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BRANDING, PACKING AND SLOGAN
? BRANDING
The word brand is a comprehensive term. The brand is to name or mark is a proof of ownership it means a signor symbol of quality. it is the best means of advertising and positioning in the market branding is the best means of capturing and retaining the consumer demand in a competitive market the marketer can create brand equity, brand loyalty and brand image for his products only through branding BALAJI WAFERS PVT LTD has the brand name as “BALAJI”.
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PACKAGING
packaging may be defined as the general group of activities in the planning of a product these activities concentrate on formulating a design of the package and producing an appropriate and attractive container or wrapper for a product the container itself can act a forceful though silent and colorful salesman at the point of purchase or an effective medium of advertisement encouraging impulse buying many a time , package design itself can act as a register brand, packaging is necessary to present flowing out of such liquid. It is essential to maintain freshness and quality; it can prevent the danger of adulteration In BALAJI the packing is done by fully automatic packing machine. They are able to prepare 180 to 100 packs in 1 minute.
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SLOGANS
The entire well known companies have selected an effective and meaningful slogan to communicate with their customer about the product in very few words it is the explanation of the product in one line in emotional way the slogans with right meaning attract the consumer to purchase the particular product forever. Balaji has the following slogans:-
IN ENGLISH
“Any time crunchy All time fresh”
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IN GUJARATI
“Jyare pan khav karkari ane taji”
QUESTIONNAIRE
1. What is the structure of marketing department? 2. In which way product planning is done? 3. What is your pricing policy? 4. Who are the target audience and competitors? 5. What is the advertising policy of the company? 6. Which type of channel of distribution do you follow? 7. Is marketing research done in your company? 8. If yes, how do you do the marketing research? 9. What is the brand of product? 10. What are the slogans for the product selling? 11. What type of packing is done for various products?
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CHANNEL OF DISTRIBUTION
CONTENTS
Sr No
Particulars
Page No
42
1
Channel Of Distribution 44
2
Reason For Selecting The Topic 65
3
Physical Distribution
38
TABLE OF CONTENTS FOR CHANNEL OF DISTRIBUTION
Sr No
1 2 3 4 5 6
Particulars
Concept Of Channel Of Distribution Role Of Channel Of Distribution Level Of Channel Of Distribution Channel Decision Marketing Middleman Dealer , Distributor And Carry And Forward Agents Terms And Conditions /Rules And Regulations Compensation To Channel Member Motivation To Channel Member Evaluation And Performance Channel Conflict And Solution Advertising Through Channel
Page No
45 46 47 50 52 54
7
56
8 9 10 11 12
57 58 59 60 62
39
13
Questionnaire
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REASON FOR SELECTING THE TOPIC
Marketing management is one of the most complexes and challenging field of endeavor contains in itself various functions like:? ? ? ? ? ? ? Product mix Price Advertising Personal selling Consumer behavior Marketing research Channel of distribution etc
From all the functions mentioned above all are equally important for capturing sufficient market. As far as channel of distribution is concerned it is internally related by channel of distribution and physical distribution both. The goods and services available must be matched against the wants desires and need of users. Channel of distribution serves to achieve this meeting of goods between producer and users\ customers i.e., why I have chosen the distribution channel as a topic of training report because without this no marketing function can be done if the goods are not able to reach its ultimate consumer.
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CONCEPT OF CHANNEL OF DISTRIBUTION
Channel of distribution is a way or path through which goods transfer from the pace of production to the place of consumption. In other words channel of distribution is a pipeline by which customer or user can obtain. The product which can satisfy their needs. The producers cannot be in the market at all the time and in every places for selling their each units produced. Because they have no such time and again it costs them too much to go in the market and sell their product for this difficulty they take the help of middleman which include wholesalers, retailers, dealers, agents, distributors etc. all of these middlemen united create a channel through which goods are distributed smoothly. The middlemen are well acquitted with the position of market and hence they can distribute the company?s product easily. According to Philip Kotler, “marketing channel is set of interdependent organization which is involved in the process of making a product or service available for use of consumption.” Distribution system is divided into two parts or division they are:1 channel of distribution. 2 physical distributions. A distribution channel moves goods from producer to consumers. It overcomes the major time, place and possession gaps that separate goods and services from those who would use them. Members of the marketing perform many key factors, which are outlined as follows:? ? ? ? ? Help in production work. Financing the producers. Aid in contribution. Promotional activities. Matching demand and supply. 41
Balaji Wafers is doing all these activities in well coordinated style. All the persons related with distribution channel are well experienced.
ROLE \ OBJECTIVES OF CHANNEL OF DISTRIBUTION
In an ever widening market, particularly in consumer goods market, distribution channel have distinctive role in the successful implementation of marketing plans and strategies. These channels perform the following marketing functions in the machinery of distribution. 1. The searching out of buyers and sellers (contracting). 2. Matching goods (merchandising). to the requirement of the market
3. Offering product in the form of assortment of packages of item usable and acceptable by the consumers. 4. Persuading and influencing the prospective buyer to favor a certain product and its maker (personal selling \ sales promotion). 5. Implementation of pricing strategies in such a way that would be accepted to the buyer?s and ensures effective distribution. 6. Looking after all the physical distribution functions. 7. Participating activity on the creating and establishment of market for a new product 8. Offering pre and after sale services to customers 9. Transferring of new technology to the user along with the supply of product and playing the role of change agent. 10. Provide feedback, information and marketing intelligence and sales forecasting services for their regions to their suppliers. 42
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LEVEL OF CHANNEL OF DISTRIBUTION
The number of channel level can characterize the marketing channel. Each intermediary that performs work in bringing the products to the final buyer constitutes a channel level. Since the producer and the final customer both perform work, they are part of every channel. There are following type of channel of distribution.
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Zero level
A zero level channel is also called the direct marketing channel it consists of a manufacturer, selling directly to the final consumer. The major zero level channels are door to door sales, home parties, mail order etc. it depends on the type and nature of product and the requirement of the customer its diagram is as follows Manufacturer Customer
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One level
A one level channel contains one selling intermediary such as a retailer as most of the manufacturer uses only the retailing system. In this distribution system, the manufacturer supplies goods to the retailer only with sufficient guidance relating to the use of product and so on. Its diagram is as follows:Manufacturer Retailer Customer
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Two levels
A two level channel consist of two intermediaries. In consumer markets, they are typically a dealer wholesaler and retailer, when the manufacturer wants to cover a comparatively wider area of markets they use this channel of distribution. Its diagram is as follows:-
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Manufacturer Dealer Retailer Customer
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Three levels
A three levels channel contains three intermediaries. In a company which wants to , distribute ,its product in a nationalized way \ or in a national level market they have to apply this channel of distribution under such circumstance s dealers are appointed in various regions, subsequently the product is moved to the customers through retailers. Its diagram is as follows:Manufacturer Dealer Sub dealer Retailer Customer
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Multi level
Multinational companies which are having their distribution system in several countries, have to follow a multi channel. It may include four or more intermediaries make the product and reach to the customers. This method is convenient when; the customers are evolved in a huge region its diagram is as follows:Manufacturer Wholesaler Dealer Sub dealer Retailer Customer
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So far as Balaji Wafers is concerned the product of this company is food product. They adopt a multilevel distribution system, which is as follows:Company Carry and forward department Distributors Dealers Retailers Consumers The company is having four distributors and 225 dealers.
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CHANNEL DECISION
Channel decision means the appointment of or selection regarding channel member in an appropriate manner. The first question arising in making a channel design is whether you want direct sales to customer or indirect sales? If the firm chooses the indirect rate, it must be considered that problems such as the number of intermediaries and methods to be employed in motivating and controlling the intermediaries. The selection of these intermediaries begins with the knowledge of ultimate customers their needs and desires for distribution services. The number of intermediaries employed will be determined by customer conveniences and economies of exclusive distribution. The company must choose whether to attempt extensive, selective or exclusive distribution or combination of all the three types of distribution. The decision is made after careful analysis of product, consumer, dealers, company objectives and policies and the conflict with in the channels and any other relevant factors. As relating to BALAJI WAFERS PVT LTD it considers the indirect extensive distribution channel. When the necessity of appointment of dealers and other channel member arises due to large area of market and more demand the company selects a channel member by following ways. 1. They give first preference to the parties who made application in past. 2. If there is no application, the company gives advertisement by appropriate advertising sources. 3. After giving advertisement the application is received in prescribed form by fax, post of nay other communication media, then it is sorted out and eligible application is filed.
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4. In the next stage the application is referred in detail, which is filed in above stage and the channel is selected after making the following inquiry. I. Inquiring through letter II. Inquiring directly. III. Checking the reference form other persons IV. Inquiring the financial position of the applicant V. Knowing the market reputation of person as well as firm VI. Checking the history and background of the firm and inquiring whether it has the vehicle facility or not? VII. Whether they are having the godown facility because it?s must requirement.
5. In the last stage, after appointing dealers deposit is taken and they are introduced about the rules and regulation which channel members have to follow.
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MARKETING MIDDLEMEN
In essence, a channel of distribution include the original producer the final buyer and many middleman either wholesaler or those institution or those institution or individual in the channel, which either take a little to the goods or negotiate of sell in the capacity of an agent or broker. Thus, from the marketing point of view the middlemen and intermediaries are the same. In all commodity markets, whether primary or central, we have lots of middlemen acting as essential functionaries. On the basis of taking titles to goods these middlemen are divided into parts:-
1) AGENT MIDDLEMEN
They are middlemen who do not take a little to goods, but help in the transfer of the title the agent are classified into ? Broker ? Commission agent ? Sole selling agent ? Manufacturer agent
2) MERCHANDISING MIDDLEMAN
These intermediaries take both possession and title to goods in their own name. They are classified as into as follows:-
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DEALER
Dealers are person who buy or resale product at either retailer or wholesaler basis.
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DISTRIBUTOR\WHOLESALER
It is a general term used to mean wholesalers.
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STOCKIEST
This is a wholesaler but takes less active role compared to distributor.
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RETAILERS
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A merchant or occasionally an agent whose business is selling directly to the ultimate consumer. So far as BALAJI WAFERS PVT LTD is concerned it utilizes the merchant middlemen as a channel member. It includes the following intermediaries whose chart representation is as follows:Company Carry and forward department Distributors Dealers Retailers Consumers
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DEALERS & DISTRIBUTORS &CARRY & FORWARD AGENTS
1) DEALERS AND DISTRIBUTORS
By appropriate procedure the company appoints a dealer. This company has appointed many dealers and distributors all over the Gujarat. The company has 225 dealers and 4 distributors the company gives fixed commission on purchase the rate of commission is 7 to 7.5% there are no fixed quotas or no force to sell the minimum number of products. They provide service to dealers as per the demand and the delivery of the goods is done any where in Gujarat just within 2 days that is within 48 hours the name of distributors and some dealers of the company are :-
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LIST OF DISTRIBUTORS
3. Mr. Anil Chandani Swami Lilasa Enterprise Sole Distributor Kutch 4. Mr. Rimal Kataria Kataria marketing consultancy Sole Distributor Gujarat
1. Mr. Vallabhbhai Kataria Kataria Enterprise Sole Distributor Saurashtra Gujarat 2. Mr. Paras Kataria Kataria Enterprise Sole Distributor Saurashtra Gujarat
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DEALERS
1. Mr. Hareshbhai Shanghvi Vimal Agency Junagadh
2. Mr. Mahebub Sorvani Akash Agency Porbandar
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3.
Mr. Pashidbhai Ramis Sales Agency Surendranagar
7. Mr. Mukesh Shrinathji Agency Rajkot
4. Mr. Maheshbhai Mirani Jamini Enterprise Ahmedabad
8.
Mr. Deepak D. K. Sales Agency Rajkot Mr. Sasin Shah Parthil Traders Ahmedabad Mr. Prakash Balaji Sales Agency Veraval
5. Mr. Sanjay &Rakesh Atmiya Sales Agency Rajkot 6. Mr. Ashvin Ashvin Agency Amreli
9.
10.
CARRY AND FORWARD AGENTS
In addition to dealers, company has appointed some carry and forward agents carry and forward agent play a vital role in passing goods from company to dealers. Dealers inform carry and forward agents and carry and forward agents inform the company about the material requisitions, and it is the responsibility of carry and forward agents to provide goods to the dealers. Kataria enterprise is the main carry and forward agent and it is also the marketing consultancy firm for the BALAJI WAFERS PVT LTD which is situated in Rajkot.
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TERMS AND CONDITIONS
The producer must determine the conditions and responsibilities of the participating channel members. The main element in the trade relation mix is pricing, policies, condition of sales territorial rights and specific services to be performed by each party. The BALAJI WAFERS PVT LTD has the following type of rules and regulations to channel members. 1. The delivery of goods must be delivered to every retailer for two times within a week. 2. The order must be placed or registered before 24 hours of route day. 3. The dealers have not been consulted with manufacture as sales the wafers and namkeen of any other company. 4. The dealer must insist to sales all the product of company. 5. They should be appropriately utilizing the allotted advertising materials. 6. When the goods are reach according to order as requirement the payment must be made by bank draft of by cash. 7. Order should be registered regularly. 8. The price of the product should be taken as per the price offered or fixed by the company at some destination. 9. Every dealer must be submitting a retailers list of his allotted area regularly to company, so that the company takes a decision regarding the advertising and area. 10. The marketing must be made only within the boundary of area allotted or fixed by the company. If channel member breach any of the above rules and regulation of the company can take back a dealership. Generally
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this kind of deal may not be arising. In case this kind of problem arise then company first give chance to rectify the error and take appropriate decision regarding dealership.
COMPENSATION TO CHANNEL MEMBERS
The channel members should be given certain compensation for the service they provide to the company of course, it works as a source of motivation to channel members. If proper and fair compensation is provided to channel members then the intermediaries will work to its utmost efficiency and good morale. Compensation is made of several elements a fixed amount a variable amount, expenses and price benefit and salary that give to middlemen some fixed stable income. The variable amount, which might be commission or bonus, is based on sales performance. So far as BALAJI WAFERS PVT LTD is concerned this company gives the fixed salary to its representatives. At the end of the year company also provide bonus and other facility like gift and articles, wafers and other food product at concession rate, first aid facility etc. In case of dealers, there is no requirement of any kind of compensation because the company not imposed any kind of force to sale fixed quota or achieves a particular target. The reason is that the company also gives the fixed commission on the purchase quantity whether the quantity is large or small. The company provides the goods to its dealer directly within 48 hours after arriving or received the order. The company also provides the best quality and fresh goods in very best packing to dealer at right time and right place as per the requirement.
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MOTIVATION TO CHANNEL MEMBERS
Intermediaries must be continuously motivated to their best job. The terms that lead them to join the channel provide some motivation stimulation channel member to top performance must start with understanding of the intermediary?s needs and wants. Channel member are very important part of the company without channel of distribution, perhaps it is impossible to reach the produced goods final consumer properly. Therefore the company can sell its product in the market by their channel member with effectiveness and efficiently. That is why every company must be motivated their channel members by different way like:1. Higher margin 2. Special allowance 3. Sales contests etc. Related to BALAJI WAFERS PVT LTD it provides positive motivation to their channel member y following way:1. The company also motivate to their channel member by seasonal scheme 2. Motivated by providing calendars high lighting BALAJI?s product 3. They also arrange the dealer?s diaro or dealers meeting in a year at some destination. 4. Company also motivated to their dealers by accepting or receiving the advice forms them for decision making work. 5. The company also motivates its dealers by solving their problem and fulfills their requirement. 6. Company also does advertisement by wall painting and by other sources on the other hand, company gives stickers, light board, banners, kitchen, metal board etc so dealers display it and increase the sales very easily. And also customer aware about the dealers shop. 7. The company also provides the guarantee of 100% replacement from customers; company solves the conflict 55
and replaces the fresh and qualitative goods. In this way dealer have confidence to solve their customers problem.
EVALUATION OF PERFORMANCE OF CHANNEL MEMBERS
The producer must periodically evaluate middlemen performance against each standard as sales quota attainment, average inventory level, customer delivery time, treatment of damaged and lost goods, co-operation in promotion and training programs and middleman services owned to the customer. The producers will discover an occasion that too much is being paid to particular middleman for what they are actually doing. In BALAJI WAFERS PVT LTD it evaluates the performance of channel by market survey, direct contracting with channel member to know the demand fluctuation and also by retailers and consumer opinion. The company evaluates the performance of channel member with following objectives:1. Whether services is regularly provided 2 times with a week to retailer or not. 2. To know the behavioral aspect of dealers with company as well as with the retailers. 3. To know the name and fame of the company in the public mind. 4. To know the market condition of the company?s product. 5. To know whether the dealer follows the rules and regulation contracted with company at the time of taking a dealership. 6. To know the information regarding dealers about how they sale other products of company. 7. To know whether the dealers utilize the advertising sources provided to them or not. Thus all the objectives are considered at the time of evaluating the performance of the channel member by above prescribed way.
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CHANNEL CONFLICT AND SOLUTION
No matter how well channel are designed and managed, there will be some conflict, if for no other reason then the interest of independent business enterprise do not always coincide. It is important to distinguish the different courses that might provide channel conflict. Some courses are easy to resolve other more conflict. A major course is goal in compatibility e.g. the manufacturer may want to achieve rapid market growth through low price policy. The dealers, on the other hand may perform to work with high morale and loyalty. This is difficult to solve. The conflict might arise because of the great dependence of the middlemen on the producer. Some times conflict arises on price decision point and some times conflict arises on supply of goods and services provided by dealers after selling the products. During my visit in BALAJI WAFERS PVT LTD I never see any kind of conflict or problem in channel of distribution. It is possible only because the company provide speedy and supply of goods according to needs of the channel member. There is not any kind of pushing system for instance, if dealer purchase particular product then other product must be purchased in some quantity. In case if any problem arises among channel as regarding services, supply of goods etc and any complain arrived from customer then the company solves this conflict and complaint by following manner. 1. First of all finding what kind of problem is arising. 2. In second stage the problem is analyzed as:i. Why this problem arises? ii. By whom this problem arises? iii. When and where this problem arises?
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3. In the next stage, after analyzing the problem company contacted to responsible person and aware them about this problem and give advice to solve that kind of error and also give chance that this kind of conflict will not arise. 4. In next stage after given the chance to rectify the error if channel member not make any kind of solution or arrangement according to the situation company takes back dealership form those people. 5. If the dealers have any problem about the company and other miscellaneous problem then it is solved in dealer meeting, which arrange in a year at some destination. 6. If the channel members have any other problem then company itself makes contact direct to those channel members and tries to solve their problem in best possible manner.
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ADVERTISING THROUGH CHANNEL
The main purpose of every commercial organization is to promote sales because it is only way to commercialize the product. That is why advertising is a main and important tool to promote the product. Advertising is one of the major tools of companies use to direct persuasive communication to target buyers and public. We define advertising as:“Any paid form of non personal presentation and promotion of ideas, goods or services by an identified sponsor.” Advertising is a form of mass communication. A sponsor who wants to communicate about his product or service to his customers pays it. They are different media for advertising the product, they are:-
1. Print media which involves :i. Newspapers ii. Magazines iii. Business books
2. Outdoor publicity which involves
i. ii. iii. iv. v. vi. Posters Wall paintings Electric sign board Sky writing Sandwich man Vehicle advertisement
3. Direct mailing postal advertising which involves
i. ii. iii. iv. v. vi. Leaflets Sales letter or post cards Folders Booklets Catalogue Brochures
4. Audio-visuals advertising which involves:i. Radio advertising ii. Television advertising 59
5. Film advertising which involves:i. Documentary advertising ii. Advertising film iii. Sponsored advertising.
Different media are selected depending upon the following factors:1. The financial allocation for advertising. 2. The nature of product and demand for it. 3. The type of products, their location and other characteristics. 4. The nature of competition 5. Cost of media, cooperation and promotional aids offered by media circular. Many companies allow to dealers to advertise the product on behalf of the company. As far as BALAJI WAFERS PVT LTD is concerned it advertises its product by different media as:1. 2. 3. 4. 5. 6. Stickers Light board Banners Kitchen Metal board Wall painting etc.
BENEFITS TO DEALERS BY ADVERTISING
1. Easy sale of product is possible since consumer is aware of the product and its quality. 2. It supplements the selling activities 3. The dealers a like because they need not spent anything for advertising of already a well advertised product share the reputation created. 4. It ensures more economical selling because selling overhead is reduced. 60
5. It enables them to have product information.
QUESTIONNAIRE
1. What is the level of channel of distribution? 2. How the channel decision taken? 3. Who are the marketing middlemen of the company? 4. Who are the dealers of the company? 5. Who are the distributors of the company? 6. Who are the carry and forward agents of the company? 7. What are the rules and regulations for channel of distribution? 8. What is the compensation to channel member? 9. How do you evaluate the performance of channel member? 10. How do you deal with the channel conflict? 11. In which way do you advertise through channel?
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PHYSICAL DISTRIBUTION SYSTEM
Sr. No
Particulars
Page No
1
Concept Of Physical Distribution System
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2
Objective Of Physical Distribution System
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3
Cost Of Distribution
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4
Order Processing System
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5
Inventory Control
70
6
Ware Housing Facility
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7
Transportation
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8
Questionnaire
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CONCEPT OF PHYSICAL DISTRIBUTION SYSTEM
The marketing process is not entirely simply by creating superb product and by creating a customer by aggressive salesmanship delivering the product to the customer at the right time and place is an equally important function in marketing. In the process of marketing this vital function is called physical distribution. A critical element in the distribution strength involves the actual movement of the goods produced after their production and before their consumption on before they reach in the hands of the final consumers. This function includes various activities which are as under:1. Inventory control 2. Material handling 3. Packing 4. Warehousing 5. Transportation 6. Insurance 7. Banking services etc. The producers and dealers perform these activities. Efficiency in the physical distribution significantly influences a company?s channel for the marketing success.
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OBJECTIVE EFFECT OF PHYSICAL DISTRIBUTION SYSTEM
Physical distribution system also effects the decision on channel of distribution. If the product requires storage, it should be sold out through dealers who own their own godown or storage facilities. If the company decides to manage their own warehouses. What type of transport facility should be arranged to carry the goods to the warehouses of its own or of middlemen. These factors should be considered while taking decision on channel of distribution. In BALAJI WAFERS PVT LTD the raw materials are to be supplied by the trucks from the various sources. After making various products according the demand or orders, goods are supplied to carry and forward and distributors goods supply to dealers and the customers by rickshaws or by truck. New method and technique have been developed that make the physical distribution challenging task. The activity of physical distribution is necessary in the modern marketing due to, 1. 2. 3. 4. 5. 6. To minimize the cost of transportation To minimize the cost of handling To control over inventory To minimize customer services To make goods available to customer at the right time and place. To follow the good order of processing system.
Thus the development of physical distribution facility has made the production feasible through out the year at lower cost of production and distribution.
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COST OF DISTRIBUTION
For facilitating the flow of distribution of goods from producers to consumers appropriate channel of distribution is very important for smoothly running of channel of distribution, proper maintenance, implementation and control, efficient handling should be needed so effective and efficient handling of channel of distribution some should be incurred. Thus every company requires allocating some portion of total cost for channel of distribution to efficient handling at minimum cost. Sot far as BALAJI WAFERS PVT LTD is concerned; it has an efficient channel of distribution. It is provided better service and best quality to its ultimate customers, which is most indispensable for capturing the more market with full demand. Therefore, to handling the channel of distribution effectively and efficiently, this company allocated 13.5% of the total cost of production. Moreover it is well known that this company provide the services to its dealer with in 48 hours from receiving the order and dealer provides services to its retailers 2 times within a week
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ORDER PROCESSING SYSTEM
Order processing is considered as the key to customer service and satisfaction. Order processing includes receiving, recording, filing and assembling of product for dispatch. The amount of time required from the date of receipt to an order up to the date of dispatch of goods must be reasonable and as short as possible generally order cycle time must not exceed eight day. Markets are now using a computer system to speed up order handling. A firm must have standard processing of order, this procedure should also include grand of credit invoicing and collecting of amount. Order processing procedure affects customer service level in two ways:1. It affects order time (interval between two orders) 2. It affects the consistency of uniformity of delivery time. Generally customer is interested much more in the consistency of delivery time that is assured delivery within a fixed period always. As regard to “BALAJI WAFERS PVT LTD” it has very efficient ordering processing procedure. It has receiving order from channel member and directly from retailer and customer also through post, fax, telephone, email and other communication media. After receiving order it is recorded and filed than goods are dispatched to its dealers according to his order with orders of other customer of its dealers according to his order with orders of other customer of its market area who directly send the order to the company. This company delivered the goods to its dealers only within 48 hours thus according to my point of view, this company primarily interested in prompt, punctual, safe and reliable delivery services.
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INVENTORY CONTROL
Inventory is the physical stock of items which organization keeps hand for efficient and continuous running of a production it reduces investment in inventory but then also production should not suffer by that decision. It consist of management of raw materials components parts finished goods, semi-finished goods etc. The proper procedure of system for controlling over inventory is known as inventory control generally there are following type of standard in inventory control. 1. 2. 3. 4. The maximum The minimum The ordering point The standard order
So far as BALAJI WAFERS PVT LTD is concerned it has a very good inventory control system. It has followed an ordering point as standard of inventory control. It purchases a raw material form various places according to need. If there is excess in raw material then it is stored in store room, which is situated in location area of the company. However generally there is no more excess raw material or finished goods than the requirement. Because the raw material are purchased according the demand of the market.
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WAREHOUSING FACILITY
Storage warehouses are fixed facilities where we store our inventory usually for a longer period. Warehouse creates time utility and can stabilize price over a certain period. It can regularly market supplies according to changing market demand time wise. We have private warehouses owned by user. There are also public firm who sell storage space and professional firm who sell storage space and perform many warehousing function on reasonable commission of fee. In BALAJI WAFERS PVT LTD the main raw material is potato and in the market seeing the more demand of potatoes the company purchases it in advance in required quantity because all the raw materials are food items in nature there are chances of being affected by the natural factors like heat, moisture, humidity which is harmful to these raw materials. Therefore they are stored in such a way in required quantity that they don?t get damaged from the effects of climatic and other atmospheric changes. The company is not having its own warehouse they utilize the public warehouse for getting the required raw materials in time for instance it has a small godown within the company promises which has the sufficient stock stored for continuous production process.
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TRANSPORTATION
Marketers need to concern with their company?s transportation decision transportation choice will affect the product pricing, on time delivery, performance and the condition of the goods when they arrive, all of which affect the consumer satisfaction so transportation policy of the company should be such which ministers the companies transportation cost which is included in the total product cost of the unit produced. So it should be such which minimizes the total product cost and at the same time able to maximize the customer satisfaction by providing right time delivery. There are many modes of transportation 1. 2. 3. 4. Roadways Seaways Airways Railways
BALAJI WAFERS PVT LTD uses only roadway transportation for the movement of raw materials before and after production process for transporting goods to company and to customer or its channel member and its ultimate customer through dealers.
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QUESTIONNAIRE
1. What is the cost of distribution? 2. How does the order processing system works? 3. How does the inventory control managed in the unit? 4. Do you have a warehouse of your own? 5. What kind of transport facility the company is using?
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FUTURE PLAN
Future plan means the company forecasts about its future goals and tries to achieve them at minimum cost and in the better way. Without any future target any company cannot run for long period. Though future is always uncertain but we can make it possible as our desire by making various creative efforts. BALAJI WAFERS PVT LTD has achieved great success in establishing good brand image, prestige and reputation over the consumer market. BALAJI WAFERS PVT LTD located recently a new plant with high technology and ultramodern computerized in Rajkot at Kalawad road. The company is planning to sell its product at other states like Maharashtra, Rajasthan, and Goa etc.
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CONCLUSION
BALAJI WAFERS PVT LTD is the adventure of Gujarati Family. It is located at GIDC Rajkot and almost all the cities of Gujarat they have their dealers. In this company the internal relation between the workers and management are very well. All the workers and management behave with each other as family members. It is the plus point of the company. The management of the company is well planned and very effective. On the point of completing this visit report I am concluding that BALAJI WAFERS PVT LTD is very well developed, well organized and progressive company. My heartily best wishes are always with them for their great sparkling and bright future.
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SWOT ANALYSIS:The following are the strength, weakness, opportunity, and threats of BALAJI WAFERS PVT LTD:-
?
STRENGTH 1. Balaji is an established brand in region of Gujarat hence it
enjoy very good brand name.
2. Balaji has a strong distribution network in Gujarat. 3. Balaji is the first company to launch the wafers in Gujarat
market.
4. Company gives healthy profit margin to retailers so they are
also very satisfied with company?s product. the company.
5. To maintain quality at any cost is the first and strong object of 6. Balaji having the one and only fully automatic plant for
production in Gujarat.
7. Balaji has a long experience in relating region of Gujarat.
Hence it can use them as an advantage to establish its leaders in the market.
?
WEAKNESS
1. Balaji does not aggressively advertise on T.V. or in other media. 2. In this company there is no facility of own warehouse.
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?
OPPORTUNITY
1. Balaji is a well known established brand in wafer market in Gujarat. Hence it can use its brand name further established itself in the national market. As the real income of the people increases day by day, there are lots of avenues that can be explored by the company to attract potential market in the urban, semi urban and rural areas. The company is now launching the products in Maharashtra state.
2.
?
THREATS:-
Balaji switching amongst consumer has increased due to new entrances offering various products in the market so it may be possible that the regular customer of BALAJI start trying to buy other brands of wafer. Hence the company must keep upgrading its product list to suit and match the faster and ever changing demand of customer and to give them maximum satisfaction.
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FINDINGS AND RECOMMENDATIONS:? FINDINGS
1) AVAILABILITY OF PRODUCT
In relation to this question all the retailers replied positively, which shows 100% availability of all the products of BALAJI on time without any delay.
2) POPULARITY OF THE PRODUCT
When I asked about customer?s preference or about the product highly demanded by the customers, the retailers said that a. b. c. d. Highest demand is for potato chips Second is for Farali Chevdo Third is for namkeens like ratlami sev etc. Fourth is for sing.
3) OPTION FOR UNSOLD GOODS
For unsold goods dealers should provide option like money back or changing of the stock etc. BALAJI dealers also give the option of replacement it is one of the good techniques of promoting the product. All the retailers got replacement facility however in reality most of the retailers said that there hasn?t been the case of unsold stock.
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?
RECOMMENDATION
BALAJI WAFERS PVT LTD is profit making company. It works smoothly since it is established there the company follows all the principles of physical distribution and also follows standard ordering processing system and it has also control the inventory by appropriate department. The distribution channel of the company works efficiently and effectively towards achieving the goals with full of confidence and cooperation. Therefore there is no need for recommendation to the company but I feel that if the company starts advertising on large scale on television media it can expand the business from Gujarat to whole of nation and after that even at international level because the quality is high of the product so I see a bright future of this company in India. All my best wishes are with them for sparkling future.
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BIBLIOGRAPHY
1) BOOKS
? Marketing Management ? Philip Kotler ? Marketing Management ? Marketing Management
?S.A. Sherlakar. ?Verma and Agarwal
2) REPORTS
Some old reports for reference.
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LIMITATIONS OF THE REPORT
1. The following are the limitations of my project report 2. The report is prepared for education purpose 3. Much information has been taken from secondary sources; therefore it is quite possible that it may have some misleading information. 4. The report is affected by personal influence. 5. It is not possible to include each and every information of the company in the report. 6. There may be printing mistakes in the report due to oversight.
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