rajesh mba
TRANSCRIPT
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CENTRE CODE NO. 01696
A STUDY ON
CONSUMER AWARENESS & SUPPLY CHAIN
MANEGEMENT OF SUDHA DAIRY
SUBMITED TO SIKKIM MANIPAL UNIVERSITY
IN PARTIAL FULFILMENT OF THE
REQUIREMENT FOR THE AWARD OF THE
DEGREE OF MASTER OF BUISNESS
ADMINISTRATION MBA(2008-2010)
SUBMITTED BY:
RAJESH KUMAR SINHAROLL NO. - 510812241
MBA (MARKETING MANAGEMENT)
SESSION (2008-2010)
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DECLARATION
I hereby declare that the project entitled
CONSUMER AWARENESS & SUPPLY
CHAIN MANEGEMENT OF SUDHA DAIRY
Submitted in partial fulfillment of the requirements for
the degree ofMaster of Business Administration to
Sikkim-Manipal University, India, is my original work
and not submitted for the award of any other degree,
diploma, fellowship or any other similar title of prizes.
Place : Patna (RAJESH KUMAR SINHA)
Date : Reg. No.: 510812241
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EXAMINERS CERTIFICATION
The Project Report of
RAJESH KUMAR SINHACONSUMER AWARENESS & SUPPLY CHAIN
MANEGEMENT OF SUDHA DAIRY
is approved and is acceptable in quality and form
Internal Examiner External Examiners
(Name and designation) (Name and designation)
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CYBOTECH CAMPUSTM
(A Unit of Anwesha Pvt Ltd)2nd Floor, Verma Centre, Boring Road, Patna
_____________________________________
CERTIFICATE
This is to certify that the project report entitled
CONSUMER AWARENESS & SUPPLY CHAINMANEGEMENT OF SUDHA DAIRY
Submitted in partial fulfillment of the requirements for the degree
ofMaster of Business Administration of
Sikkim Manipal University of Health, Medical and technological
sciences
(RAJESH KUMAR SINHA)
has worked under my supervision and guidance and that
no part of his report has been submitted for the award of
any other degree, Diploma, Fellowship or other similar
titles or prizes and that the work has not been publishedin any journal or Magazine.
Prof.R.B.Singh
MBA(P.M.I.R)
(Guides Name and Qualification)
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PREFACE
The study of Consumer awareness and Supply Chain managent occupies a
significant place in the study of marketing effectiveness of any firm,
because sale is life blood of the business. With the expansion of business,
the life of the market to be covered to sale large quantity of goods
becomes too large to control by the owner of the business under taking
personality. Hence, this arises the need of sales organization to perform
the various functions. These functions include market research, product
planning, sales for casting, determination of selling policy, selection of
channel of distribution, selection, training,
supervision and remuneration of the sales man etc.
Indeed, Supply chain is any sequence of institutions from the producers to
the consumer including one or a number of middle men. I have undergoneSudha Dairy Project, in Patna during my project training. I conducted the
market survey and determined the channel of distribution of product of
Sudha Dairy in Patna.
To emphasize the very practical aspect of management education
Cybotech Campus, Patna, Patna makes necessary arrangement for Project
training for MBA course.
In order to collect the primary data I visited the outlets of different area as
Well as conducted the many shops and whole sellers survey.
I hope that our finding and suggestion will be handy and useful in
improving their market share.
I am extremely obliged to the Mr. Vijoy Kumar & my guide Mr. Abhijit
Kumar who helped me during training period and report writing.
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ACKNOWLEDGEMENT. There are a few things that come in the life of a person may be for a
short span of time, but leaves an ever shining impetration into the mind.
My training is one of the events, which will be ever shining in my life.
While submitted this project report I feel my moral duty to pay thanks and
mention the names of the names of the person whose co-operation
guidance and constant encouragement helped me in each and every step
during the preparation of this project work.
First of all, I express my gratefulness to our Centre Head Manoj Kumar
for the excellent academic environment and commendable facilities. I
enjoyed as a
student of the institute.
I am indebted to my guide Mr. Abhijit Kumar, Business Head, Cybotech
Campus, Patna for his valuable guidance during the course of my study, Iexpress my sincere thanks to him. 1 express my eternal gratitude to Mr.
Vijoy Kumar Marketing Manager S D P, Patna for permitting me to carry
out this project work in his organization. I am also thankful to Mr.
Niranjan Prasad for their substantial help and insightful suggestion during
the course of the study.
Once again, I express my hurtful gratitude to the institute family and staff
of the organization for their co-operation for this project report.
(RAJESH KUMAR SINHA)
.
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OBJECTIVE
Understanding customers perception on Patna Dairy as abrand.
Understanding awareness regarding the hygienic factor of using
. Packaged milk
Understanding different reasons (good or bad) for them to use or
not to use, the factors affecting its success & the modus operand
involved
Competitors Analysis on product attributes.
Market analysis with respect to Distributors or Retailers
involvement in the companys success.
TABLE OF CONTENT
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CHAPTER - 1 INTRODUCTION1.1 Introduction
1.2 Objectives
1.3 Profile of Organization
1.4 Organizational Structure
1.5 Government Policy
CHAPTER - 2 ACTIVITIES & PRACTICES OF P.D.P.2.1 Procurement of Raw Materials
2.2 Marketing Strategy
(a) Products
(b) Pricing Policy
(c) Promotional Devices
CHAPTER - 3 INTRODUCTION & THEORETICAL BACKGROUND
3.1 Introduction to marketing
3.2 Definition of Management
3.3 Consumer Behavior & its Concept
3.4 Concept of Consumer Behavior
3.5 Consumer Responses
3.6 Supply chain Management
CHAPTER -4 MARKETING RESEARCH & METHODOLOGY
4.1 Marketing Research4.2 Sources of Data Collection
4.3 Research Approach
4.4 Research on Methodology
4.5 Data Collection & Analysis of Information
CHAPTER - 5 ASSUMPTION OF MARKET5.1 Analysis & Statement of Consumer Responses
5.2 Consumer Reaction
5.3 Representative of Sudha Dairy
5.4 Analysis of Strength, Weakness, Opportunities &Threats
5.5 Limitation
Appendix
Questionnaire
Bibliography
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CHAPTER 1. INTRODUCTION
1.1 Introduction
1.2 Objectives
1.3 Profile of Organization1.4 Organizational Structure
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INTRODUCTIONBefore dealing-with the topic profile, I would like to state here a
background of co-operative societies: a principal on which SUDHA
works.
India primarily is a country of farmers. She is largely
dependent on the agriculture products and animal husbandry under the
cover of Agriculture.
Due to massive Dairy Development milk production
suddenly showed an upward trend. Govt. provides heavy subsidies to
Maintain & operate the Govt. liquid milk plant as public utility activity.
Most of the big Dairy processing milk and manufacturing milk products in
the country are in the co-operative sectors. Under the five year plan, milk
marketing flourished a lot.In Bihar, SUDHA has a brand of COMFED came up on the
lines of co-operative societies. Sudha came into existence on 1983 by the
law passed in parliament. SUDHA is just a brand name of Bihar.
State co-operative Milk Federation LTD (COMFED). The
law passed in the parliament gave rise to COMFED. COMFED came up
on the pattern of Anand Milk Co-operative Federation (GUJARAT) the
first of its kind in the world . The Bihar State Dairy Co-operative were
passed on to COMFED. The founder of SUDHA was Mr. S.VIJAY
RAGHVAN. There are 5 milk union under Sudha . Each have anAutonomous right but are under direct control of COMFED. They are:-
1. Vaishal Patliputra Dugdh Utpadak
Sahknri Sangh Ltd. Patna.
2. Deshratna Dr. Rajendra pd. Dugdh I
. Utpadak Sahkari Sangh Ltd. Barauni
3. Tirhut Dugdh Utpadak Sahkari Sangh Ltd.
Muzaffarpur.
4. Mithila Dugdh Utpadak Sahkari Sangh Ltd.Samastipur
5. Shahbad Dugdh Utpadak Sahkari Sangh Ltd.
Arrah
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BACKGROUND
Patna was one of the milk shed identified under Operation Flood-1 (OF-1) for
implementation of the programme. A hundred thousand litres per day capacityFeeder Balancing Dairy (FDB) &100 MT per day capacity feed plant (CFP) were
set up under this programme.
In order to implement the programme properly & also for organizing the
milk procurement activities & for the management of above two plants, the Bihar
State Dairy Corporation (BSDC) was formed in the year 1972. The Dairy
Corporation was to develop the dairy co-operatives both at the village level co-
operatives would take over the entire infrastructure created in due course.
The Corporation after recruitment & training of necessary staff positioned
the procurement & Input wing (P&I) from 1975. A spearhead team (SHT) was
deputed from National Dairy Development Board (NDDB) from the same year
for helping the corporation in organizing & developing the co-operatives. Though
the progress in the initial years was encouraging the programme for obvious
reasons couldnt achieve the goals for which it was established.
Subsequently the State Govt. felt it necessary to request the DAIRY
BOARD (NDDB) for taking over the infrastructure created on management basis.
The National Dairy Development Board (NDDB) took over the management of
infrastructure with effort from 1SI October 1983 under the banner of Patna Dairy
Project (PDP).
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PROGRESS OF PATNA DAIRYThe National Dairy Development Board (NDDB) immediately after taking over
the project positioned an integrated Spear Head to restructure the milk
procurement activities & for streamlining the working of the FDD & CFP. Underthe management of NDDB the project had not only made excellent progress but
had been able to establish the fact that the co-operatives could function equally
well in Bihar too & what is essential is the atmosphere & guidance.
Along with the organization of milk procurement activities &
management of both the plants on commercial lines, the NDDB took special care
to develop the Vaishal Patliputra Dugdh Utpadak Sahkari Sangh ltd. (VPDUSS)
the milk shed level co-operatives for taking over the project once the DAIRYBOARD withdraws its management. NDDB handed over the Patna Dairy Project
(PDP) to Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd. (VPDUSS) with
effect from 1st July 1988.
PROGRESS UNDER VAISHAL PATLIPUTRA
DUGDH UTPADAK SAHKARI SANGH LTD
(VPSDSS)
The major tasks before the Vaishal Patliputra Dugdh Utpadak Sahkari Sangh Ltd.
(VPDUSS) was to see that the excellent infrastructure developed by the National
Dairy Development Board (NDDB) is not only maintained but also see that the
pace of development is not hampered. The vpduss has been able to accomplish
these task to a greater extent. Comparatively progress of the project over the
years is enclosed as annexure-l (a) & (b).
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PRESENT STATUS
MILK PROCUREMENT:
There are at present 1285 nos. of functional Dairy Societies in the area of
PDP covering the districts of Patna, Vaishali, and Nalanda & Fringe areas of
Saran with a total membership of 77035. The daily average procurement has
reached up to 167808 liters during year 2008-2009. It is hoped that the project
will collect above one & a half lakhs liters of milk per day in commencing year.
There are 198 nos, of women co-operatives exclusively managed &
run by rural women folk. While the union has fairy good no. of functional
societies by increasing the members participation. The graphs showing the nos. of
functional societies, no. of members increasing yearly, & daily average lean
months procurement are enclosed as Annexure no. II, III, & V. The co-operative
Development (CD) programme was also initiated from March, 1991 with the
assistance of NDDB. The graph showing the average producers price over the
year is enclosed in Annexure VI.
THRUST AREAS :
1. To make Sudha brand a market leader by making Sudha Milk &
Milk Products a consumer delight & ensuring that the esteemed
customers get value for money.
2. Consolidation of the DCSs already organized leading to increase
milk.procurement.
3. Further improvement in the involvement/participation of
members in their co-operatives.
4. Bridging the flush-lean gap further.
5. Popularizing all the input programme.
6. Increasing the throughout & sale of both milk & milk
products as well as cattle feed, by pass protein feed & UMB.
7. Reducing further the handling losses & increases the utilization of
plant capacity
8. Optimizing the utilization of all consumables.
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CHAPTER 2. ACTIVITIES &
PRACTICES OF P.D.P.
2.1 Procurement of raw material
2.2 Marketing strategy
(a) Products
(b) Pricing Policy
(c) Promotional Devices
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Marketing strategy
At the very outset of its marketing campaign P.D.P.restored to a smaller
extent in the advertising of its products. Instead, it stresses on other cheapways viz. hoarding, counter display, towards its wall painting & posters
for drawing the market attention to its product on large. But the changing
market phenomenon, like fierce competition & range of products coerce
the authorities to get customer aware to those products. So it gave a new
shape to the advertising aspects media for its varieties of products. Really,
these endeavors has come up with positive remark from the sale of
customers & sale has gone tremendously up of products like Ice-cream,
Ghee & Lassi.
However, the level of advertising with range of products is
very less.The least response of authorities may have toward outcome in
near future. Because the advertisement retains old customers & make a
new. If the competition would have inception in the same strata of market,
It may lead to short to present level of customer of P.D.P. & above all the
mis conception prevailing about the P.O.P.can only be expunged through
the intense advertisement of products & its qualities.
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A. Pricing policy :
Often price is the major basis of competition in the market. It
is one of the major aspects which the competitors watch very closely. Theprice of the product will have a noticeable effect on its sale , on the firms
total revenues & on its final profits.
A part from the firm, price is important for the buyers & the
society. The demand of the product is greatly affected by its price. Price
may often act as an indicator of quality. According to the law of demand,
a decrease in price would lead to the increase in demand. However, in
certain cases, increase in price may be perceived favourably by the buyerswho might interpret it as a consequence as a increase of quality.
In setting the price P.P.P. follows various ways:
Producers attitude : The organization is setting the price of its
product after seeing the cost of miik supplied by producers.
The organization also considers the consumers attitude in
determining the price of its products.
The organization also considers the competitive price as a
basic approach for positioning its own price.
The organization does not consider the demand of its product
in determining the price, because it does not want to exploit.
the market So, organization tends to limit the profitable price
of its products.In this way, it has adopted marginal policy
keeping in view the interest of societies milk producers &
consumer.
B. Promotional Devices
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These are four major tools of promotional mix.
a. Advertising
b. Personal selling
c. Publicity
d. Sales Promotion
2. Nature & Definition Of Product :
It is perishable in nature.
3. Branding :
It is name, term, sign, symbol or design which is intended to
identify the goods of manufacturer/seller or a group of sellers & to
differentiate from those of competitors.
Milk :- The different types of milk containing different % of fats &
S.N.F. have branded differently to give consumer easy selection of theirproducts. Now the various brands & their % contains of fat & S.N.F. are
as mentioned below.
Types of Milk Name of
Brand
% Fat % S.N.F.
Full Cream milk Sudha Gold 6.0%
9.0%
9.0%
Standardized
Milk
Sudha Shakti 4.5% 8.5%
Toned Milk Sudha Healthy 3.0% 8.5%
Double Toned
Milk
Sudha Smart1.5% 9.0%
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4. Packaging :
Physical properties require packaging decisions to create
such benefits as protection economy, convenience & promotion. Markets
have to develop a packaging concept & test to as certain the achievements
of desired objectives in a comfortable fashion.
Milk :- All the four types of milk are packed in different types of
packets. The filling in packets are done through automatic fill-pack
machine. The tone pack are transparent & attractive & draw the attention
of the consumers. Sudha Gold has red pack,Sudha Shakti has green pack,
Sudha Healthy has blue pack where as Sudha Smart has yellow pack.
5. Quality :
There is quality control selection in P.D.P. which checks &
maintain the quality of its product. They very careful about this quality.
Though there a few no. of complain regarding smell, freshness, quick-
spoilage etc. which are immediately attended.
MARKETING STRATEGY :
A. Product Policy:
It contains following aspects
1. Kind of product manufactured.
2. Nature & definition of product.
3. Branding.
4. Packaging.5. Quality.
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1Kinds of product manufactured:
(a) Toned Milk : It is the milk having 3 to 3.1% (at & 8.5%
S.N.P.
A very popular milk among consumer.
(b) Doubled Toned Milk : It is the milk having 1.5% of fat & 9%
of S.N.F. This type of milk is desirable for persons having
cardiac & other diseases as it has very low fat, but high S.N.F.
content. It serves as fat free nutrient to the parents. In Patna,
actually most people have not a favourable attitude towards
toned & double toned milk,
They think that these milk packets arecream less milk & are not suitable for health. This is the main factor
which affects the marketing of toned & double toned milk.
(c) Full Cream Milk : It is the milk 6% fat & 9% S.N.F. as regard
to FCM it was found during market survey that due to its fat content
people have felling that it is of nutrious falue. But due to its high price
many people do not prefer this pack. It has great demand among students
living in Hostel & Lodges.Families of businessmen prefer this due to its
rich Cream contents.
(d) Standardized Milk : The fat contents of milk is 4.5% with
8.5% S.N.F. This packed milk having highest deemed in the
market. Due to its reasonable price & good quality with
sufficient fat content every class of people prefers this pack.
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CHAPTER 3. CONSUMERS AWARENESS AND SUPPLY CHAIN
MANAGEMENT
3.1 Introduction
3.2 Significance & Objectives of the Study
3.3 Scope of the Study
3.4 About Distribution Channel
3.5 Objective of Distribution Channel
3.6 Evaluating the Major Channel Alternative
3.7 Factors Influencing a Producers Choice Of
Distribution Channel
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INTRODUCTION TO MARKETING
In earlier periods of human history, the problems of human beings
resolved around the question of survival and needs varied from region to
region and changed with the variation in environment and
circumstances. With the passing of time, human needs became more
sophisticated and segmented and therefore to satisfy these needs, more
products and services were needed. In our modern world, human behavior
and needs are no longer static, they are constantly changing. Thus the
demand for products and services are also constantly changing. The
marketing of products and services essentially deals with this situation.
In ancient times, the transactions between two persons or two
organizations were merely exchange of goods that is commonly. Known
as
barter system. However, this barter system could not be used as an
efficient a systeD:l of transaction as the value of goods defer from place to
place and changed time to time. Moreover, with the passage of time, thehuman knowledge about available products and its values also became
easier
Thus, the system of exchange of goods could not be effectively used.
Besides, the barter system had serious limitations not only to volume
exchange process but also to acceptable quality available in the market,
which is acceptable to the customer. Therefore, with the passing of time,
more acceptable system of buying for goods or services in kind or cash or
whatever acceptable currency, became more and more relevant. Thus
process of exchange of money for goods and services to satisfy both
sellers Offer to sale and buyers need to purchase - gave birth marketing
process or activity.
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ROLE OF MARKETING IN BUSINESS
Marketing management derives its strength from customer
satisfaction and hence continuous and sustained marketing efforts are
needed to maintain this satisfaction level. The marketing companies selltheir products and services to satisfy consumers needs and as long as this
equation is satisfied, the relation between the marketing company and
target consumers will be healthy and satisfactory. However, with
changing consumer buying behavior and competition, the products need
to be upgraded or modified to keep pace with the changing situation in the
market and this process should be continuous, otherwise the product will
become either obsolete or undesirable.
Marketing efforts result in new products, new packaging ideas, new
and better products.
Marketing helps to know the situation in the market identify
the competitors, identify the consumers and take suitable and appropriateactions. That is it helps the company to develop and advertise the
brand through various promotional and advertising technique.
Developing and advertising a brand comes under brand management
which forms an integral part of the marketing system Brand management
helps the company to set aside his product from that of his competitors in
order to help the consumer identify his product. We shall discuss about
brand and its concept in the subsequent chapter.
MANAGEMENT
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Management is a universal activity in the modern world. It is an essential
part of any group its influence can be observed in all the type
of organization, decision-making procurement of the resource co-
ordination of activities and direction of the peoples are the important
activities in all organizations have certain elements of management in
common.
MANAGEMENT DEFINITIONS
G.R TERRY
Management is a distinct process consisting of activities of Planning,
Organzing and Controlling perform to determine and accomplish stated
objective with the use of human being and their resources.
HENRY FAYOL
To manage is to forecast and to plan, to organize, to co-ordinate and
control.
CONSUMER BEHAVIOR
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INTRODUCTION TO CONSUMER BEHAVIOR
The main objective of the marketing management is to create
the demand and increase it regularly. For fulfilling this objective,
marketing managers prepare wide marketing programs and these are
called profitable marketing mix. According to marketing point of view
these are input or ingredients of marketing programs to a large extend.
The demand for the product depends upon the attitude perception, motives
and behavior of the consumers. Also marketing managers have to make
adjustment to the situation.
The product may be excellent, the firm may be reputed, sales
policies and promises may be mire attractive that competitors. But if t
incur loss under such situations market can find only one solution that is
arranged their mix according to need to customer . Customers buying
behavior is a process, through which inputs like buying power,
interpersonal influence, and environmental factors. And their use through
process ( perfection of wants, search, purchase decision, product use an
evaluation) and actions lead to satisfaction and wants.
Purchasing behavior may be viewed as an orderly where by
the individual interacts with his environment for the purpose of making
market decision on goods and services of dozen categories if humanbreathing, buying and so forth one of the primary importance to market is
buying.
Buying behavior involves a complicated series of stimulus and
response reaction to many factors of motives. These motives may be
expressed or unexpressed and are based upon deep- seated needs of more
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openly felt wants. When someone buys something, he is psychologically
satisfied both a need and wont provides him with certain mental and
physical satisfaction, A modern buyer wants to know not only for what a
product can do but also for what thus mean.
According to Webster consumer behavior is all psychological
social and physical behavior or potential customer as they become aware
of evaluates purpose consume and tell other at out-products and services
Buyer behavior emphasis that this behavior is both individual
( psychological ) process and group (social) process it follows the buyers
from awareness through to post purchase evaluation It includes
communication purchasing and Consumption behavior it is broad
enough for both consumers (individual and house hod) and industrial
(organizational) buying behavior.
Buyer behavior is comparatively a new filed of study it is the
attempts to understand human actions in the buying role. It has assumed
growing importance under market oriented and customer oriented
marketing planning and management. Market for many product and
the growth consumerism and consumer legislation. Since 1960 have
created interest in buyers, behavior and the formulation of marketing
mixes to respond favorable buyer behavior in the market place.
Consumer buying behavior to wards their needs-
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1. Psychological need- these are the needs that are related to survival
and maintains of human life this needs include for satisfying hunger,
thirst, shelter sleep, air and water these are the basic needs and till they
are satisfied the other needs are of little importance.
2. Safety and security needs after satisfying the psychological needs,
people want the assurance of maintaining a given economic level. They
want job security personal body security, security of income provision
for old-age, insurance against risks
3. Social needs - Man is a social being. He is there fore interested in the
conversion sociability exchange of feeling and grievances. Companion
ship, religion belongings etc..
4. Esteem and status needs -This needs embrace such things as self-
confidence. Independence, Achievement, knowledge and successful
stock they are also known as egoistic needs. They are concern with (he
prestige and status of the individual.
5. Self-fulfillment needs - final step fulfillment it is the desire to achieve
the maximum of once capabilities. Its fulfillment depends upon the
prior fulfillment of the more of the basic needs.
Factors influencing consumer behavior
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Psychological factors-lifestyle informs is how and why consumers
behave as they do. Changes in how in our lifestyle are mainly shaped by
economic factor. As our economic and social patters change marketers
have to find out corresponding changes in lifestyle factors
This include family life cycle increasing women employee (by 1990
women as may be about 30 % of all workers in India). Change in
educational and occupational patterns. Life style patterns involves
preference to purchase in a certain way. It includes taste and attitude
psychological and sociological factors; collectively the study of socio
psychological influences has created a whole new field of marketersbuyer behavior. The next chapter deals exclusively with buyer behavior
in the market.
Social factors- this theory explains buyer behavior in term of social
forces such as social classes, reference groups, culture, lifestyle the
family, it states that the great deal of consumer behavior
is .....................not so much buy real needs for prestige different factorssuch as culture, sub-culture and each of the provides more specific
identification and socialization for its members over and available sets of
products at given prices. The purchasing decision is based on economic
calculation and reason.
Economic model of consumer behavior is urn-dimensional
according this model. We have the following prediction about the buyerbehavior .
1. The lower the price of a product, the bigger the quantity that will be
brought.
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2. The higher the purchasing power, the higher the quantity that will be
bought.
3. The lower the price of a substitute product, the lower the quantity that
will be bought of original product.
4. The higher the incomes the higher the sales of ones products.
5. The higher the promotional expenditure the higher sales, but they
availed it of this hypothesis does not rest on whether all individual
. act as economical calculating machines. Thus, this model explains
economic implications of several factors connected with economic aspect
related to a consumer.
Who Is The Consumer Market ?
The Consumer market consists of all the individuals and
households who buy or acquire goods and service for persona!
consumption consumer vary in ages, income, education, mobility pattern
and taste, markets have found it worth while to distinguish between
grounds and develop products and services tailored to their particular
needs it the market, segments is large enough some companies at setup
special marketing programs served this market.
What Do Consumers Buy :-
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Consumer Interest is in finding some basis of classifying vast
number of consumer product.
1 Durable Goods :- Tangible goods are for example:-
Refrigerator, pressure cooker, clothing . these products are likely to need
more personal selling and services command a higher margin and required
more seller guarantees.
2. On-durable Goods :- Tangible goods which normally are consumed in
or a few uses for example:- meat, soap. Since these goods are consumed
fast* and purchased frequently they are likely to be made available in
many locations and small margin and develop strong brand loyalty.
3.Services:- Activities benefits per satisfaction, which are offered for s
example:- hair cut, repairs consumers services have characteristics of
being intangible, perishable, variable variable and personal as a result they
are likely to require more quality control supplier creditability and
continuous availability.
4. Convenient goods :- Customer usually purchases - this consumer
goods frequently immediately and with minimum effort in comparison
example
Tobacco products, news papers and blade.
5. Shopping goods :- These are consumer goods with the consumers in
the process of selection purchase characteristically compares on such
basis suitability, quality process and stiles for example:- furniture, dress,
good used in automobiles and major appliances.
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6 Specialty goods:- These consumer goods with unique characteristics
and brand identification for which a significant group of buyer and
habitually willing to make a special purchasing effort.
When Do Consumers Buy :-
The occasion for consumer buying can be analyzed
purchased along serve dimensions whether consumers purchased a
product for example:- households with young children consume milk at a
much faster rate than childless household. Marketing strategy for such
items often based on segmented the market in to buyer with different
consumption Heavy, medium light users.
Mostly consumers buy goods at off-seasons only to avail
discounting facility, purchases timing is also varying during the day or
week. Economic conditions also affect consume purchase timing
particularly for durable goods or shopping and specially goods when
economic out look is poor consumer post-pone major purchase.
The basic motive of consumer buying: -
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There is a few basic motives that causes people to buy: -
1. comfort of conveniences : for which reason they purchase labor saving
devises and in numbering conveniences at home, at work and insertion
such as gas cylinders, stove and pressure cookers, electronic iron soft bed,
good nursing and tasty food, types of food, types of convenience like fans,
air conditions, washing machines and luxurious articles.
2. Safety and protection :- people generally fear loss of life, health,friends, job reputations and comfort as that cherish for becomes
greater on this counts are purchased house, investments, insurance policy,
drug tonic and health giving drinks and many other such items.
3. Safety of provide and variety :-people like to feel important in the
society among friends club to get administration acquire state symbol
which leads to verity. For all this ladies purchase costly customers,
jewelrys, joining expensive club to theaters and purchase product of arts
have important and expensive home decoration objects, purchase,
television, refrigerators, costly furniture and variety of costly furniture and
variety of costly goods.
4. Love and affection: - it consists of a sense of duty love of family
society and desire to see just done to oneself and others.
Readymade, baby suits, childrens toys and even life insurance policy
to their children. Labor saving devices, beautiful present,
costly jewels, fashion perfumes, romantic and sexy novels for
their wife are generally purchased to satisfy the buyer affection motive.
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5. Gain and economic motive :- Some people like to make purchase to,
make purchased enable them to personal benefits or gain
monitoring acquire better things at lower costs. A
businessman wants to purchase things which they can go aroundshops buy her needs of grocery and desire to save money and utilize
this future.
6. Adventure and excitements :- People are curious to this. They like
new things, new places to visit in order to satisfy their desire. They
purchase latest clothing, new books and many such things.
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INTRODUCTION
The study of Supply chain occupies a significant place in the study of
marketing effectiveness of any firm, because sale is life blood of thebusiness. With the expansion of the business, the life of the market to be
covered to sale large quantity of goods becomes too large to control by the
owner of the- business under taking personality. Hence, this arises the
need of sales organization to perform the various functions. These
functions include market research, product planning, sales for casting,
determination of selling policy, selection of channel of distribution,
selection, training, supervision and remuneration of the sales man etc.
Indeed, Supply chain any sequence of institutions from the
producers to the consumers including one or a number of middle man.
As maximization of wealth is the main objective of every business
and this aim could be achieved if the profitability of the firm is increasingand if it is decreasing, then it would be hard enough to operate the
business for long. So channel of distribution should be taken very
consciously/
It can therefore be said that the firm should adopt and maintain an
effective channel of distribution.
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After production, the next problem faced by a producer is that of selling
and distributing because production is made to satisfy the need of the
consumer, so it must reach to the consumer for whom it is made.
There are different channel of distribution i.e. goods may be passed
on to the consumer through distributor and retailers or only through sub-
distributor or directly by the producers to the consumers. The producers
may choose any one of channels considering various factors, which force
the producers to decide about one channel or the others. Where a choice
is available with the producers to pass the goods on the consumers then he
must choose channel which may cost least so that unnecessary burden of
distribution is not put on the consumer resources.
There are two critical aspects of channel, the first is, channel choose
for the companies products intimately affect every other marketing
decisions i.e. pricing decisions, advertising decisions, sales force
decisions involved the firm in relatively long-term commitments to other
firms..
It is my passion to know the running distribution channel can be
applicable for long run any change required. If it is require then at which
level at where that can good for such.
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SIGNIFICANCE AND OBJECTIVE OF THE STUDY
In the era of cut throat competition and globalization/ of business every
company face, a series of hurdles in selling the product in the market.
Therefore it becomes necessary to keep eyes every aspect of management.
Needless to say that distribution channel becomes the most
important aspect. It helps not only the management to increase its sales
and its micro interior operation but also helps to know retailers needs and
wants.
OBJECTIVES :
The main objectives can be classified as follows :-
1. To analyses the trends of distribution channel.
2. To provide information about the factors which can assist the
company in increasing sales.
3. To examine the various pit falls that been occurred during the
distribution of companys product.
4. To examine the problems thoroughly.
5. To suggest a course of action to kick these problems away from bettermarket share through an effective channel of distribution.
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SCOPE OF THE STUDY
The study entitled Consumer Awareness & Supply chain of Sudha in
Patna However, I survey only 140 people in Patna region.
The survey of the customer reflects light on the effectiveness and
efficiency of running system.
The findings are based on the response given by the Customers
exploratory cum descriptive research was used in the research design. The
observational research could have been a very input to the research but
due to various compulsions it could not happen at a desired level.
Therefore, we like to say that findings should not be considered
universally applicable.
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Supply Chain Management (SCM)
SCM is larger in scope than both physical distribution andmarketing logistics. It encompasses materials management task as well.
Supply chain actually refers to the whole business chain, encompassing
procurement of inputs, in-bound logistics, conversion of inputs into
products, physical distribution/marketing logistics and channel functions,
which finally take the end product to the ultimate consumers Essentially,
SCM can be viewed as the combination of materials management and end
product distribution, which constitute the two vital component? of the
business process and form the key tasks at the front and back ends of the
process, respectively.
It can be seen that the supply chain is in effect the firms value
chain. Value is actually spread through the firms supply chain. A Firm
can optimise its total customer value by managing activities in the supply
chain in an integrated manner, treating them as one continuous chain. The
supply chain constitutes a value delivery network. That is why it is often
said that firms compete in the marketplace using their supply chains as the
weapon, not their products and brands. Superiority in supply chain is thus
a major competitive advantage. A firm with the better supply chain wins
in the market. We have discussed the value chain concept in detail in the
two chapters on Industry Analysis, and Competitive Advantage.
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The SCM approach, no doubt, has some merits. It facilitates the
integrated handling of the functions of the business, especially the
procurement function and the logistics functions at the front and the back
ends of the business. As a result, it comes handy in value creation/ value
addition.
In this text, we shall in any case avoid the SCM approach. After all,
in a marketing text, there is no scope for discussing materials
management. We shall confine ourselves to distribution of end products.
We shall, however, make a slight deviation from the traditional way of
handling the subject. Instead of treating it merely as a physical
distribution task, we shall treat it as marketing logistics.
IMPORTANCE OF PHYSICAL DISTRIBUTION MARKETING
LOGISTICS
Physical distribution/marketing logistics forms a pivotal part of the
marketing task.
Confers Place and Time Utility on Products
It is physical distribution that confers place-utility and time-utility
to a product by making it available to the user at the right place and at the
right time. Thereby, it maximises the chance to sell the product and
strengthen the companys competitive position. If any product made in
any place could be consumed in its entirety at the very place of production
and at the very time of production, there would be no need for physical
distribution of that product. But such products are very rare. In practice,
almost every product gets consumed at places and times that are different
from those of their manufacture. They have to be carried to places of
consumption; they have to be stored; and they have to be distributed.
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Where Production Locations and Markets are Distanced,
Physical Distribution Becomes more Crucial
In some cases, production locations are totally dictated by
considerations, like proximity to sources of raw material. As a result, the
points of production might be far away from the markets for the product.
In some cases, huge production capacities get established at a given
location on considerations of technology and economies of scale. In all
such cases, the product has to be marketed over an extended territory; it
has to be transported over long distances, stored for a considerable length
of time and sold. Then, there are products, which are impacted by the
seasonality factoreither production is continuous but demand is
seasonal, or demand is continuous but production is seasonal. Here too,
physical distribution becomes particularly crucial. It has to perform the
balancing act between production and consumption.
COMPONENT FUNCTIONS OF PHYSICAL DISTRIBUTION/
MARKETING LOGISTICS
The component functions of physical distribution/marketing
logistics are shown in Chart 27.2. .The three major functions are:
Transportation
Warehousing
Inventory Management
We shall discuss each of them in detail. But before that, let us
understand how a physical distribution system has to be designed.
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DESIGNING A PHYSICAL DISTRIBUTION SYSTEM
The steps involved in designing a physical distribution system are
shown in Chart 27.3.
Articulating Distribution Objectives and Specifying Minimum
Service Level Desired in Product Delivery
As first step, the distribution objectives of the firm must be properly
articulated and the minimum service level to be guaranteed in delivery
must be clearly specified. In fact, the guaranteed minimum service level in
delivery is the key to a physical distribution system. It is also the
touchstone for measuring the efficiency of the system.
Component Functions of Physical Distribution/Marketing Logistics
Planning the overall physical distribution system
Secondary transportation, secondary handling and sub-
In plant-warehousing distribution
Transportation
Inventory management at each level In the chain
Field warehousing
Order processing/ execution Receiving
Accounting/record keeping
Handling
Communication
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Steps Involved in Designing a Physical Distribution System
Articulating distribution objectives and specifying the minimum service
level desired in product delivery.
Finding out what the customers want in product delivery. Finding out what competitors do.
Keeping the costs of the system as low as possible, without sacrificing
the guaranteed minimum service level.
Keeping the system sufficiently flexible.
TRANSPORTATION
The importance of transportation in physical distribution emanates
from a variety of factors. At the beginning of this chapter, we explained in
detail the factors that contribute to the importance of the physical
distribution job as a whole. This applies to transportation. Transportation
confers time utility and place utility to the product; it determines the
companys
Main Tasks in Transportation Management
Assessment of the transportation requirement
Choosing the mix of transport modes
Deciding the routing
Development of operational plans Implementation/review
Control of transportation costs
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customer service; it also has a crucial bearing on the other elements of
physical distribution and marketing, like warehousing, inventory control
and channel management. Finally, transportation is also a very important
cost element in most businesses.
Basically, transportation management involves decisions on :
How much to move?
When to move?
Where to move?
By what mode, or combination of modes to move? :
;
The considerations in making these decisions are:
(a) the lead time for stock replenishment
(b) sales expected in the territory in the intervening time
(c) the normal cycles of inventory build up at the warehouse/dealer points.
If a firm can estimate these factors fairly accurately, it can make the
basic decisions on transportation. In a fundamental sense, transportation
has to be based on the sales forecast. Decisions on when to move, how
much to move and where to move will essentially depend on the sales
forecast.
WAREHOUSING
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Warehousing is the second major component of physical
distribution. Warehousing management has two distinct and equally
important parts: (i) the physical job of creating and running the network of
storage points, and (ii) the managerial task of controlling inventory levelswithout sacrificing service levels. Though interrelated, they require
separate and detailed discussion. We shall, therefore, devote two
independent sections to the subject. In the first, we shall deal with the
warehousing aspects and in the second, with the inventory management
aspects.
Role and Importance of Warehousing
Role and Importance of Warehousing
Like transportation, warehousing too vests the product
Storage reduces the need for instant transportation,
with time utility and place utility.which is often difficult and costly.
In the case of some commodities, warehousing vests
Storage is also a competitive advantage, as with better
the product with form utility as well, storage, better servicing of the
channel and consumer
It is common knowledge that a certain level of storage is
possible.inescapable in marketing of most products.
Storage also helps in balancing demand and supply,
For products with high seasonably, storage is needed and in stabilising
prices.on a larger scale.
In some cases, sub-distribution realities necessitate
In the case of some products, storage by itself acts as
extra storage a stimulant of demand.
Designing a Warehousing System
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In most cases, products flow from the factory to the consumer
through a long winding chain, consisting of multiple tiers of warehouses
and multiple tiers of marketing intermediaries. In designing a
warehousing system, the following basic questions relating to this flow
become significant.
How many warehouses should we have?
Where should we locate them?
What should be the size or capacity of each of them?
Determining the Number, Location and Size of Warehouses
Determining the locations and capacities of the warehouses is the
crux of the task. On this depends the firms customer service level, its
competitive advantage in distribution and its inventory cost structure.
While one might point out that it is the inventory turnaround that
primarily determines inventory costs, the fact remains that the costs are
also influenced by the locations and spread of the inventories at how
many places and in what size are stocks kept. Moreover, inventory
turnaround itself is partly the outcome of the manner in which the
inventory is spread.
Determining the number : The optimum number will depend upon the
nature of the product, the size and geographical spread of the market
serviced by each warehouse, the current and potential sales in the
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territory, the extent of seasonality of demand if applicable, the level of
peak demand, the trade patterns, the number of distributors/retail outlets
to be serviced by each warehouse, the acceptable order-execution time,
the possible speed of replenishment of stocks and the cost involved in
operating warehouses. Future requirements and pattern of competition are
also relevant factors in deciding the number and sizes of the warehouses.
Choosing the size : The decision on the size of the warehouses must be
taken in alignment with the decision on their total number. After a firm
assesses the sales potential in each warehouse territory, the question to be
decided is: What is the optimum inventory holding needed for realising
the sales projected for the territory?
Warehouse size and costs arc inversely interrelated. So, as a
general rule, small-sized warehouses are uneconomic compared to larger
ones. At the same time, if the sales projected are small, warehouse size
has to be small. Customer convenience and channel service will call for a
large number of small-sized warehouses spread extensively all over themarketing territory. There will also be the additional consideration of
future requirement. As a general rule, it can be said that by reckoning the
volume of sales and the desired market share in the area
covered by the warehouse, and by applying the factors of transit time and
peak season demand, the optimum warehouse capacity at a given location
can be worked out.
Choosing the exact locations : Choosing the exact locations of the
warehouses is as important as choosing their number and capacity. The
locations must be suitable in terms of market factors and availability of
transport facility. Rent rates, commercial suitability of the location,
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implications of local levies, etc., have also to be looked into. Above all,
availability of suitable godown space has to be considered.
Elements of Inventory Costs
Interest on capital tied up in the inventory
Postage and communication charges
Warehouse rent
Administrative overheads
Staff salaries
Costs of handling, unloading and stacking Insurance
Loss due to damage and deterioration while on storage
Rates and taxes
Cost of order processing/record keeping/accounting
Stationery
In many cases, warehousing as a whole becomes inefficient on
account of unreliable sales forecasts. When actual sales show greatdivergence from the forecast, any warehousing plan naturally goes
haywire and its effectiveness suffers a setback,
INVENTORY MANAGEMENT
Inventory management is the third major component of physical
distribution task. It will be obvious that without effective management of
finished product inventory, it is impossible to run any business efficiently
and profitably.
Inventory is Inescapable
Carrying inventories is inescapable in most businesses. This is
because the producing and consuming activities take place at different
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times, in different locations and at different rates. Inventories are made up
of several elements: operational stocks kept at the point of sale/ retail
outlets for meeting ready demand is the first element; stocks in transit at
any given point of time the second; then there will be stocks awaiting
shipment; and finally, there will be buffer stocks for meeting emerging
sales requirement.
Elements of Inventory Costs
Interest on capital tied up in the inventory is a significant
element of the total inventory carrying costs. This is particularly true in
businesses in which the turnaround of inventories is rather slow.
In recent years, increased competition has resulted in accumulation
of stocks in a number of businesses. And the slowdown in the economy
wherever it has occurred, has added to the burden in this regard.
Warehouse rents have also been going up. Naturally, inventory-carrying
costs have been going up. Besides warehousing rents and inventory costs,
handling costs, which include costs of clearance, loading, unloading and
stacking, too have been going up.
Issues in Managing Inventory and Inventory Cost
The following are the main issues involved in the management of
finished product inventory.
Identifying the purposes served by the inventory.
Establishing correct relationship between inventory purpose and
inventory level, and deciding the optimum inventory level.
Ensuring that the inventory is maintained at the optimum level.
The crux is: How to decide the-optimum inventory? In simple
terms, optimum inventory is the level that is sufficient to realise the
projected sales, but not too high to erode projected profits. The controller
of physical distribution has to determine at what inventory level, he can
by and large avoid lost sale due to stock out. Lost sales is a key
concept in inventory management.
Inventory Control, a Balancing Act
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It is quite easy for a physical distribution controller to completely
avoid stock-out situations and consequent lost sales, if only he is
allowed to maintain a very high level of inventory.But, no firm will allow
excessive inventory levels; it is not sound business; it involves a heavy
cost. Sound business will call for optimisation of inventory
level/inventory costs, ensuring at the same time that the forecasted sales
are realised. Obviously, one must assess the probability of run-out,
quantify the resultant loss of sales/profit and offset it against the cost of
holding additional stocks and realising the sale. Inventory management,
thus, is essentially a balancing act.
Optimum Inventory, a Compromise Between Cost and Service
Inventory is primarily a function of customer service level fixed by
the firm. Here, customer service level primarily means the ability to meet
demand at the retail level as and when it arises from available stocks,
without having to generate a back-order. ,It is in view of this close
interrelation between inventory level and customer service level that
inventory control essentially becomes a compromise between cost andservice.
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ABOUT SUPPLY CHAIN MANAGEMENT
In the era of societal marketing all leading companies arc emphasizing on
maximum consumer satisfaction with minimum cost. Companies are not
only interested to sale their products but they are also willing to know
changing taste are preference of the consumer. They arc investing more
and money to know even uncontrollable variable like human Psychology.
Distribution system of a company helps to procure its largest sales
as well as it helps to know the attitude and taste of consumers in changing
environment downward communication. Which is helpful for a companyto reach its objectives.
Every Company has its own way to its product in marker. Few
leading companies believe in their own outlet operation and they have on
intermediaries. But several companies like Sudha operates with
intermediaries. They usually take advantage of brand image as well as
developed networking system of their intermediaries.
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OBJECTIVE OF SUPPLY CHAIN MANAGEMENT
In any developing economy there is an increasing emphasis on
specialization and the division of labor. Thus, there is a gap between
producer and user.
The purpose of a Supply chain is to bridge this by resolving spatial and
temporal discrepancies in supply and demand.
It involves following activities :-
(1) Transfer of title to the goods involved.
(2) Physical movement from the point of production to the point of
consumption.
(3) Storage.
(4) Communication of the information concerning the availability
characteristics and price of the goods in transit, inventory and on
purchase.
The importance of these function depends upon the nature of goods
themselves, Activities of Supply chain involve price fixation, reutilization
of decision, managing finances promotional activities, arising
communication, minimizing total.
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EVALUATING THE MAJOR CHANNEL ALTERNATIVE
There are various channel alternatives available to a producer. Now the
main problem before the producer into decide which of the alternatives
would best satisfy long term objectives of the firm taking in view the
factors which would affect the channel decisions. For this purpose, each
alternative must be rated against economic, control, and adoptive criteria.
1. ECPMP, OC-CRITERIA
For evaluating the effectiveness of channel of distribution, the economic
criteria are the most importance since the firm pursues the profits.
(i) What would be the sale volume under each of the channel
alternatives.
(ii) The second consideration is to estimate the selling and distribution
costs of each alternative.
(iii) Then the sale and the costs of different alternative should becompared having a comparative view of cost effect on the net profit of the
firm Companies own sale force should also be taken in view and should
decided whether have own its sales force of use the sales agency.
2. CONTROL CRITERIA
In evaluation the channels the second main consideration is that of the
control i.e., how would the marketer be in a position to have a control
over a particular channel. The more would by the control the better wouldbe the channel of distribution. For this purpose, he is to consider the
channel relationship between various channels of distribution., their
internets and attitude about companys product and conflict among them
legal aspects in appointing a particular channel should also be considered.
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3. The next consideration in channel decisions is to see whether the
channel would be suitable to adopt the changing condition in future.
Each channel alternative involving a long commitment must in
grounds in order to be considered but it is not valid on the ground of
adaptability.
FACTORS INFLUENCING A PRODUCERS CHOICE
OF A DISTRIBUTION CHANNEL
The best channel decisions in on that works best in the marketing strategy
selected by the company. The channel chosen should achieve idea; market
exposure and should meet target customers needs and preferences.
The channel choices is influenced by several factors:-
(A) PRODUCT CHARACTERISTICS
The product characteristics play on important rate influencing the
channel selection.
(i) Purchase Frequency-
The more frequently purchases are made; the more feasible it is
for a manufacturer too use direct distribution. This requires
extensive distribution which involves a financial consideration.
(ii) Perish ability-
Perishable and fashionable products such as dairy bakery
products, fruits and vegetables or sea foods must be placed in the hands of
the final users as soon possible after its production. These usually
require more direct marketing because of the dangers associated with
repeated handling and delays.
(iii) Weight and Technicality of the Product-
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Products that are bulky, large in size and technically Complicated
are usually sold directly by the company to the consumer because of
the difficult to find middlemen for the lines.
(B) MARKET FACTORS OR CONSUMER FACTORS
(i) Consumer or Industrial Market-
The producer of consumer product may
choose a long.channel involving wholesalers and retailers depending upon
the nature of product.
(ii) Number of Purchaser-If the no. of consumer is large, the
channel may be indirect and services of wholesalers and retailers become
necessary.If customers are few, direct sale can be entertained through
representatives.
(iii) Size of Orders-
If customers purchase small quantities
frequently and regularly, lengthier marketing channels are indicated. If theorder from the consumer is large, the channel may be shorter.
(C) COMPANY OR ENTERPRISE FACTORS
(iv) Financial Resources-
The financial strength of the company
determines which marketing tasks it can handle efficiently and which ones
are to be delegated to the middlemen.
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(v) Size of the Company-
A large company already handling a wide line
of products is in a good position to take an additional product of the same
line and handle it the same way, usually directly. A smaller firm or one
with narrower lines, would find middlemen more practical.
(vi) Product Mix-
A fresh expansion of plant capacity may require
more aggressive channel. If the product mix of a company is wider, it can
deal with its customers directly.
(D) MIDDLEMEN CONSIDERATIONS
(i) Services Provided-
If middlemen can provide the services to the
customer which the company requires to provide, the middlemen can be
appointed otherwise company will sell the product direct to the consumer.
(ii) Attitude-
If some middlemen desire to fix their
own price for the product and if the company agrees to allow them to do
so, they can very happily agree to sell the products of the company. On
the other hand, if the company likes to follow the Resale Price
Maintenance policy, the choice is limited.
(iii) Availability-
If the company is late entrant in the field and
his competitors have already tied up, the middlemen is a necessary part of
a selective or exclusive distribution policy.
(iv) Cost of Channel Usage-
Those channels should be chosen which ensure
efficient distribution at least expenses and which secure the desired
volume of sale. However, from the consumers point of view, the
justification for the intermediaries is that they make is easy for him to
buy.
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(E) ENVIRONMENTAL FACTORS
(i) Economic Condition-
When economic conditions are
depressed the producers choose shorter channels to cut costs. If there is
multi point tax on sales, the line should be shorter to avoid the tax burden
of consumers and they prefer to sell directly to the retailers or consumers.
(ii) Legal Restrictions-
If there is any legal restriction on
any selling activity, the producer will be restricted to do so. For example
under MRTP, Act, any practice which may have the effect of
unreasonably preventing or lessening competition in the supply of goodsor services is not permissible. So, also is resale price maintenance. In case
controlled items the channels should be strictly according to the
government policy.
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CHAPTER 4. MARKETING RESEARCH &
METHODOLOGY
4.1 MARKETING RESEARCH
4.2 DATA SOURCE
4.3 RESEARCH APPROACH
4.4 RESEARCH INSTRUMENT
4.5 COLLECTION & ANALYSIS OF INFORMATION
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RESEARCH METHODOLOGY
SOURCE OF DATA : - Having decided about the objectives and scope
of the enquiry, the next problem is to decide about the sources from which
the information (data) can be obtained or collected.
1 used both primary & secondary source to collect information.
Primary data : - The data that are originally collected by an investigator
or agency for the first time for any statistical investigation and used by
them in the statistical analysis are termed as primary data.
Secondary data : - The data (published or unpublished) which have
already been collected and processed by some agency or person and taken
over from there and used by any other agency for their statistical work are
termed as secondary data.
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Methods of collecting primary data
I used both Questionnaire and schedules technique to collect primary data.
Questionnaire : - It is set of questions which are answered by the
respondent himself in his own handwriting.
Schedule: - It is the device of obtaining answered to the questions in a
from which is filled by the interviewers or enumerators in a face-to-face
situation with the respondents.
Secondary data was collected from broachers & company internal records.
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MARKETING RESEARCH
The American marketing association defines marketing as the process of
Planning and executing the conception/pricing promotion and distributionOf ideas, goods and services to create exchanges that satisfies individuals
& organizational objectives.
It is formalized means of obtain information to be used in making
marketing decisions. Marketing Research is the systematic & objective
identification, collection, analysis, dissemination & use of information for
the purpose of assisting Management in decision making related to the
identification & Solution of problems (& opportunities) in marketing.
TYPES OF MARKETING RESEARCH
Exploratory Research
Descriptive Research
Experimental Research
Exploratory Research : - Exploratory Research is concerned with
discovering the General nature of the problem & variables that relate to it.
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The purposes of Exploratory Research are:-
To understand the problem being faced by the mgt.
To identify the underlying variables which might have
produced the problem?
To develop hypothesis and hence tentative solutions.
To gain insight and new ideas.
The methods of exploratory research:-
Analysis of secondary data.
Survey of experts in the industry.
Case studies.
The structure of exploratory Research is:-
It is relatively unstructured,
It has to be flexible to a great extent.
Sample is relatively small.
Generally no questionnaire.
Descriptive Research : - It is focused on the accurate description of
variables in the Problem model.
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The purposes of descriptive research are:-
To descriptive marketing variables.
To estimate the percentage of units in a given population
showing a particular behavior.
To make predictions.
To study perception of object.
The methods of descriptive research are:-
Cross sectional study.
Cohort analysis.
Longitudinal study.
Experimental research:-
An experimental involves manipulation of one or more variables and
measuring the effect of manipulation on some other variables.Variables which are manipulated are independent variables and the
variables on which effects of manipulation are measured are dependent
variables.
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RESEARCH
INFORMATION CONSUMERS
ANALYSIS
REPORT
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QUALITY OF THE PRODUCT
Responses1 2 3 4 5
Quality (%) 1.4 2.14 3.57 14.2 78.57
Quality Marks Obtained Index Total Response
13130 9378 140
QUALITY OF THE PRODUCT
1% 2% 4%14%
79% 12
3
4
5
PoorSatisfectory
Good
Very Good
Excellent
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QUALITY CONSISTENCY
Responses1 2 3 4 5
Quality Consistency (%) 2.14 1.42 7.14 17.85 71.42
QUALITY CONSISTENCY
2%1% 7%
18%
72%
1
2
3
4
5
Satisfectory
Good
Very Good
Excelent
Poor
Consistency Marks Obtained Index Total Response
1280 91.57 140
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SHELF LIFE & RELIABILITY
Responses1 2 3 4 5
Self Life (%) 1.42 5.71 3.57 7.14 82.14
Shelf Life & Reliability
1% 6% 4%7%
82%
1
2
3
45
Poor
Satisfector
Goo
Very
Excellent
Self Life Marks Obtained Index Total Response
13080 93.42 140
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FLEXIBILITY & RESPONSIVENESS OF
THE ORGANISATION
Responses1 2 3 4 5
Flexibility (%) 5.71 8.57 14.28 7.14 64.28
FLEXIBILITY & RESPONSIVENESS OF THE
ORGANISATION
6% 9%
14%
7%64%
Poor
Satisfectory
Good
Very Good
Excellent
Flexibility Marks Obtained Index Total Response
11920 85.14 140
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TRAINING & AWARENESS
ACTIVITIES
Responses1 2 3 4 5
Training & Awareness (%) 1.42 2.14 57.14 17.85 21.42
TRAINING & AWARENESS ACTIVITIES
1%2%
58%18%
21%
PoorSatisfectory
Good
Very Good
Excellent
Training &
Awareness
Marks Obtained Index Total Response
10030 71.64 140
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COMMUNICATION FACILITIES & METHODOLOGY
Responses1 2 3 4 5
Communication Facilities (%) 0.71 1.42 10.71 21.42 65.71
COMMUNICATION FACILITIES & METHODOLOGY
1%
1%
11%
21%
66%
Poor
Satisfectory
Good
Very Good
Excellent
Communication
Facilities
Marks Obtained Index Total Response
12640 90.28 140
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PROMOTIONAL ACTIVITIES OF THE
ORGANIZATION
Responses1 2 3 4 5
Promotional Activities (%) 0.71 0.71 7.14 28.57 62.85
PROMOTIONAL ACTIVITIES OF THE ORGANIZATION
1%
1%
7%
29%
62%
Poor
Satisfectory
Good
Very Good
Excellent
PromotionActivities
Marks Obtained Index Total Response12690 90.64 140
SALES SUPPORT FACILITIES PROVIDED BY THE
ORGANIZATION
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Responses1 2 3 4 5
Sales Support (%) 2.14 1.42 3.57 14.28 78.57
SALES SUPPORT FACILITIES PROVIDED BY THE
ORGANIZATION2%
1%
4%14%
79%
Poor
Satisfectory
Good
Very Good
Excellent
Sales Support Marks Obtained Index Total Response
13140 93.71 140
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TECHNICAL SUPPORT FACILITIES PROVIDED BY
THE ORGANIZATION
Responses1 2 3 4 5
Technical Support (%) 1.42 2.85 2.85 7.14 85.71
TECHNICAL SUPPORT FACILITIES PROVIDED BY
THE ORGANIZATION
1% 3% 3% 7%
86%
Poor
Satisfectory
Good
Very Good
Excellent
Technical
Support
Marks Obtained Index Total Response
13320 95.14 140
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VALUE FOR MONEY WHEN CONSUMER BUY &
CONSUME THE PRODUCTS
Responses1 2 3 4 5
Value For Money (%) 2.14 2.14 2.85 28.57 64.28
VALUE FOR MONEY WHEN CONSUMER BUY &
CONSUME THE PRODUCTS
2%2% 3%
29%
64%
Poor
Satisfectory
Good
Very Good
Excellent
Value For
Money
Marks Obtained Index Total Response
12710 90.78 140
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ENVIRONMENTAL CONCERN OF THE
ORGANAIZATION
Responses1 2 3 4 5
Environmental Concern (%) 0.71 2.14 4.28 67.85 25
ENVIRONMENTAL CONCERN OF THE
ORGANAIZATION1%
2%
4%
68%
25%
PoorSatisfectory
Good
Very Good
Excellent
Environmental
Concern
Marks Obtained Index Total Response
11590 82.78 140
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SOCIAL CONCERN OF THE
ORGANIZATION
Responses1 2 3 4 5
Social Concern (%) 1.42 2.14 3.57 35.71 57.14
SOCIAL CONCERN OF THE ORGANIZATION
1%2% 4%
36%57%
Poor
Satisfectory
Good
Very Good
Excellent
Social Concern Marks Obtained Index Total Response
12530 89.5 140
INDEX TABLE
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PARAMETER INDEX
Quality 93.78
Quality Consistency 91.57
Shelf Life & Reliability 93.42
Flexibility & Responsiveness 85.14
Training & Awareness 71.64Communication Facilities 90.28
Promotional Activities 90.64
Sales Support Facilities 93.71
Technical Support Facilities 95.14
Value For Money 90.78
Environmental Concern 82.78
Social Concern 89.5
INDEX TABLE
93.78
91.57
93.42
85.14
71.64
90.28
90.64
93.71
95.14
90.78
82.78
89.5
0 20 40 60 80 100QU
ALITY
QUALITYCONS
ISTENC
Y
SELF
LIFE&REL
IABILITY
FLEXIBILITY&RE
SPON
SIVENE
SS
TRAINING
&AWAREN
ESS
COMMUN
ICATIONFA
CILITIE
PROM
OTIONA
LACTIVITIES
SALE
SSUPP
ORTFA
CILITIE
S
TECHNICALSUPP
ORTFA
CILITIE
VALU
EFO
RMONEY
ENVIR
ONMEN
TALCONC
ERN
SOCIAL
CON
CERN
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100%
30%
60%
20%
15%
MILK
PEDA
LASSI
DAHI
OTHERS
81
Analysis & Interpretation of the study
[Retailers]
Product lines dealt by retailers-
PRODUCT PERCENTAGE
MILK 100%
PEDA 30%
LASSI 60%
DAHI 20%
OTHERS 15%
[Sample Size = 140]
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60%20%
2%
3%
10% 5%MILK
LASSI
ICE CREAM
PANEER
DAHI
OTHERS
90%
10%
YES
NO
82
Average sell of different milk/milk products-
[Sample Size = 140]
Does the organization fail to fulfill the demand of product-
YES 90%
NO 10%
[Sample Size = 140]
PRODUCTS PERCENTAGEMILK 60%
LASSI 20%
ICE CREAM 2%
PANEER 3%
DAHI 10%
OTHERS 5%
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75%
10%
15%
YES
NO
NOT AWAR
70%
30%
YES
NO
83
Do you recommend setting up a call centre/customer help line for improving the
customer services
[Sample Size = 140]
Retailers influence on purchasing behavior of consumer -
YES 70%
NO 30%
[Sample Size = 140]
YES 75%
NO 10%NOT AWARE 15%
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70%
30%
YESNO
75%
20%
5%
1 DAY
2 DAY
3 DAY
84
Do you recommend to try new products of SUDHA to consumers-
[Sample Size = 140]
Average time taken to deliver the product-
TLME PERCENTAGE
1 DAY 75%
2 DAY 20%
3 DAY 5%
[Sample Size = 140]
YES 70%
NO 30%
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15%
85%
SATISFIED
DISSATISFIED
70%
18%
12%
1 DAY
2 DAY
3 TO 4 DAY
85
Satisfaction level regarding compensation policy against damaged product-
SATISFIED 15%
DISSATISFIED 85%
[Sample Size = 140]
Organization
inventory storage
time for product before
selling to the
consumer-
1 DAY 70%
2 DAY 18%
3 DAY 12%
]
[Sample Size = 140
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25%
60%
15%
VERY GOOD
GOOD
FAIR
65%
35%
0%
10%
20%
30%
40%
50%
60%
70%
YES NO
Series1
86
Satisfaction level regarding the transportation medium used by organization to
deliver the product-
[Sample Size = 140]
Quality standard is maintained by the company regularly
[Sample Size = 140]
VERY GOOD 25%GOOD 60%
FAIR 15%
YES 65%
NO 35%
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CHAPTER 5. ASSUMPTION OF MARKET
5.1 ANALYSIS & STATEMENT OF CONSUMER RESPONSES
5.2 CONSUMER REACTION
5.3 REPRESENTATIVE OF SUDHA DAIRY
5.4 ANALYSIS OF BRAND MILK
5.5 ANALYSIS STRENGTH WEAKNESSES
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ANALYSIS & ASSUMPTION OF THE MARKET
SURVEY
Information pertaining to milk marketing and sales of dairy products were
collected the study covered two categories of respondents.
a) Customer
b) Representatives of Sudha dairy
For the first to categories of respondents two types of questionnaires were
used as research instruments. The questionnaires included both open and
closed ended questions and addressed issues related to-
a) Availability of products
b) Consumer preferences vis-a-vis attributes of products
c) Label of brand loyalty
d) Strength, weakness, opportunities and threats of products consumers
consume and retailers endorse.
The representative of Sudha Dairy were administered with in-depthdiscussion guidelines.
The study covers 100 customers. The sample allocated for retailers were
proportionally distributed allocated for retailers were proportionally
distributed amongst the retailers for Sudha and Raj with the premise that
Raj is the major competitor for Sudha in the packaged milk market.
The customer questionnaires were administered to selected respondentsrepresenting different stratum of in various areas of Patna among different
class of people.
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The customer base of the city were divided into seven categories based on
usages pattern vis-a-vis socio-economic classification of house holds, The
categories defined for the study were
1. Officers /Professionals (10000-25000)
2. Clerical Grade employees (8000-15000)
3. Businessmen (30000-50000)
4. Housewives
5. Students / undergraduates
Each of the customer category identified above exhibit different
characteristics. The following text summarizes the profile of the customercategory identified.
Officers / Professionals : They represent educated class,
aware about the properties of pasteurized milk vis-a-vis other milk. The
study indicates that respondent belonging to this category are aware and
conscious about processing and treatment of milk i.e. supplied to them.
These respondents were also aware about the variants(tone, double toned
etc) of milk available in the market. Most of them were aware of tonedand double toned milk packaged. They also form one of the major
customer group consuming packaged milk.
Clerical Grade Employees : They represent educated
class can are very sensitive to price implications. They also form one of
the major customer group consuming packaged milk.
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Businessmen are the basic purchaser of milk and other
dairy product because usually they reside in combined family. They
purchase a huge quantity of milk but along with pasteurized milk. They
also purchase loose milk from local Gwalaas due to faith among them.
They consider Sudha Gold as the best quality of milk due to its high price
and greater fat contents.
Housewives : Majority of them arc comparatively less
educated and notice the very faults while purchasing the product. They
put very much stress on the fat contents of the milk and are very much
concerned with price of the product.
Students / Undergraduates : Most of them living in
hostel of lodge are either single or in pair are the customer of Sudha Gold
i.e. F.C.M. as they purchase in very less quantity and are more concerned
of the quality of the product rather high price. They do not prefer
purchasing loose milk due to
Inconvenience.
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PACKAGING
The study also tried to analyze the perception of peopleon the packaging of Sudha milk. It is indicated that
approximately 5.40% of the respondents agree that thepackaging is good while 25.55% trustworthy. 17% need tochange & 2.05% people dissatiafied because of the usualappeal of the pack but because some stray cases when thepacks were sound to be damaged.
PACKAGING
P A C K A G I
55%26%
17%2%
G O O D
TRUSTW O RT
N E E D TO
C H A N G E
DISSATISF IE
HERE,
Shows the Packaging of GOOD
Shows the Packaging of TRUSTWORTHY
Shows the Packaging of NEED TO PACKAGE
Shows the Packaging of DISSATISFIED
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The following chart tries to explain the level of penetration of di