A STUDY ON CHANNELS OF DISTRIBUTION

With reference to

AMMIREDDY OILS LIMITED

ANAPARTHI

Project report submitted to Andhra University, Visakhapatnam in partial Fulfillment for the Award of the Degree in

MASTER OF BUSINESS ADMINISTRATION

By
CH.VENKATA AMMIREDDY Regd.No. 208 !"0000

Under the esteemed guidance of S#$. %.SUBHA

MBA

F&'()$* +, #&,&ge#e,$ -$(d+e-

DEPARTMENT OF MANA%EMENT STUDIES ADITYA INSTITUTE OF P.% STUDIES

(Affiliated to Andhra University)

SURAMPALEM
2008.20"0

ADITYA INSTITUTE OF P.G.STUDIES (Approved by AICTE, Affiliated to A.U SU!A"PA#E" $ %&&'&( E.G.DIST (AP

)ONAFIDE CE!TIFICATE
This is to certify that the project entitled *a +t,dy o- C.a--el+ of Di+trib,tio-/ I- *A""I!EDDY OI#S #I"ITED, ANAPA!T0I/ is the bonafide record of work done by "r. C0.1e-2ata A33ireddy !e4.No.567%'86666% during the period 566795686 in partial fulfillment of the requirement for the award of the Degree of "ASTE! OF )USINESS AD"INIST!ATION in Aditya I-+tit,te of P.G. Colle4e affiliated to AND0!A UNI1E!SITY.

Project Guide: S"T. G.SU)0A !"#"$"

&aculty in $ditya P"G"'ollege"

Head f the Department: S!I.:.NAGEND!A ;U"A! !"#"$""%

Head of the Department"

DEC#A!ATION

( hereby declare that the project work entitled )C0ANNE#S OF DIST!I)UTION/ with reference to A""I!EDDY OI#S #td* ANAPA!T0I is originally prepared and submitted by me to AND0!A UNI1E!SITY% +(,$-H$P$T.$! in partial fulfillment of the requirements for the award of the degree of "ASTE! OF )USINESS AD"INIST!ATION" The empirical findings in the report are based on the data collected by me while preparing this project" (t has not been submitted to any other uni/ersity or publication at any time before"

(C0.1EN;ATA A""I!EDDY Regd.No. 208 !"0000

P#ACE< DATE<

AC;NO=#EDGE"ENT
( wish to thank Sri :.Na4e-dra ;,3ar% H D% $D(T0$ (.,T(T1T2 & P"G",T1D(2, for his /aluable support in doing this project" ( thank my project guide% S3t. G.SU)0A 3ecturer in !anagement ,tudies for pro/iding me her /aluable guidance and e4pertise in successful completion of this project" ( thank my project internal guide "r. 1. S!INI1AS GUPT0A, (!anager 5 $ccounts fficer6 who shows infinite patience and perse/erance in teaching% suggesting remedies for the problems encountered in my project and in answering all my questions"

( also e4tend my heartfelt thanks to my friends for their cooperation during my entire project period"

C0.1EN;ATA A""I!EDDY Regd.No. 208 !"0000

CONTENTS

C0APTE! 8 C0APTE! 5 C0APTE! & C0APTE! ' P7 &(32 & TH2 $!!(72DD0 (3, 3TD P7 &(32 & TH2 (3 (.D1,T70" (.T7 D1'T( . ,' P2 & TH2 ,T1D0 #82'T(+2, & TH2 ,T1D0 .22D & TH2 ,T1D0 72,2$7'H $.D !2TH D 3 G0 3(!(T$T( ., & TH2 ,T1D0

TH2 72T('$3 ' .'2PT,

C0APTE! %

$.$30,(, $.D (.T27P72T$T( .

C0APTE! >

&(.D(.G, ,1GG2,T( ., ,1!!$70 ' .'31,( . )I)#IOG!AP0Y

C0APTE! 8

INT!ODUCTION

INT!ODUCTION

(n the present of competiti/e era there is no organi9ation which is an e4ception to marketing" ne can call it as propaganda or an appeal it is an attempt to create an image in the minds of ultimate customers" (t is in fact a bunch of all such acti/ities that con/erts the will of a customer to effecti/e demand" !arketing deals with identifying and meeting human and social needs" !arketing is typically seen as that task of creating% promoting and deli/ering goods and ser/ices to consumers and business" ,o marketing is one of those most important pillars of an organi9ation" !arketing boasts a rich array of concepts and tools" !arketing channels are one of those important concepts" !arketing channels to reach a target market% that marketer uses three kinds of marketing channels" They are communication channels% distribution channels% ser/ice channels" The marketer use distribution channels to display sell or deli/er that physical products or ser/ices to that buyer or user" The organi9ation uses direct and indirect distribution marketing" They include distributors% whole sellers% retailers and agents" Production is made to satisfy the needs of that customer" ,o it must reach to that ultimate customer" The way through which goods mo/e from producer to that customers is a )C0ANNE#S OF DIST!I)UTION/.

SCOPE OF T0E STUDY

This kind of research helps to put into practice the theoretical aspects"

The study of this type of nature aims to gi/e information about competitors demand for oil"

.ature of research methods used% findings of the in/estigation% conclusion and recommendations"

/erall scope of the study is to understand dealers: perceptions towards the $ 3"

O):ECTI1ES OF T0E STUDY

$ study in channels of distribution is undertaken for the following specific objecti/es:; To study the effecti/eness of channels in $mmireddy oils"

To understand the practical importance of the concept"

To know the relationship of the company with the channel members"

To know the effect of marketing acti/ities on customer awareness and dealers opinion towards margin pro/ides by the company"

To know the factors affecting $ 3 from the dealers"

To know marketing acti/ates pro/ided by $ 3"

To assess /arious means incorporated for smooth distribution"

To make suggestion% if any% for the impro/ement"

To know the dealers perception on the channel members benefits schemes pro/ided by the company"

To study the consumers con/ince< comfort towards a/ailability of the product

NEED OF T0E STUDY

2dible oil is one of the essential commodities to all categories of people in the society" The oil is a part of nutritional diet to the human beings" 'onsumption of poor quality edible oil leads to human ailments" ,o it is /ery important to a common man to choose good quality oils for the preparation of edible items" !arketing of oils is so much important now days for bringing awareness among the target audience" therwise they go for inferior brands by lea/ing the superior ones" (n the (ndian market the demand for the edible oils is /ery high when compared with its supply" ,o it is easy to the producer to earn profits by producing these products" (f the producer scans the market en/ironment he will find sample opportunities he can earn more profits if he carefully ser/es the customers" ,treaming lining the channels of distribution and le/els of satisfaction is one area where the manufacturer decisions ha/e drastic impact on the costs incurred" The decision made on the distribution channels can make or break an organi9ation" (n this contest it essential to study the concept of distribution channels and le/el of satisfaction in $ 3" =&rom these two points say that the study of marketing of oil would be helpful not only to the producer but also to the dealers"

!ESEA!C0 AND "ET0ODO#OGY

!ESEA!C0 DESIGN<
The formidable problem that follows the task of defining the research problem is the preparation of the design of the research project% popularly known as the )research design>% Decisions regarding what% where% when% who how much by what means concerning an enquiry or research study constitute a research design %> $ research design is the arrangement of the conditions for collecting and analysis of the data in a manner that it aims to combine rele/ance to the research purpose with economy in procedure" (n fact% the research design is the conceptual structure within which research is conducted" (t constitutes the blue print for the collection% measurement and analysis of data as such the design includes an outline of what the researcher will do from writing the hypothesis and its operations and implications to the final analysis of the data" The research methodology is a way to systematically sol/e the research% problems" (t may be understood as the science of studying how research is done scientifically" We study /arious steps that are generally adopted by a researcher in studying his research problems along with the logic behind them it is necessary for the researcher to know not only about the research method but also about the methodology"

DESC!IPTION OF !ESEA!C0 DESIGN<

(t is the basic frame work which pro/ides the guidelines for the research" The research design specifies the methods for data collection and data analysis"

Type of re+ear?.< This study is descripti/e research"

De+?riptive re+ear?.<
The design% which simply describes something such as demographic characteristics or respondents" The descripti/e study is typically concerned with determining frequency with which something occurs or how two /ariables /ary together"

So,r?e+ of data<
The researcher can call for gathering secondary data% primary data or both" ,econdary data consists of information that already e4ists somewhere% ha/ing been collected from another purposes and primary data consists of original information gathered for the specific purpose" Data collection is /ery essential to study the information fact and figure that are directly related to the problem that ha/e been formulated" The kinds of data that has been collected for this study are: (" ((" Primary Data" ,econdary Data"

I Pri3ary data<
Primary Data was collected by the sur/ey method" The technique used in this study is a well structured and designed questionnaire" The questionnaire contained open and closed end questions"

II Se?o-dary Data<
,econdary Data is collected from the company:s office and by personal discussions with the e4ecuti/e and other employee of the company"

Sa3pli-4 pro?ed,re<
(n general non;probabilistic and in specific con/enience sampling method" ,ample si9e : limited Dealers in east and west Goda/ari DT"

,ample method

: ?uotas sampling"

The sampling procedure used here is quota sampling where the researcher inter/iewed a . of dealers" 7esearch instrument: ,tructured questionnaire was used" Which was a mi4ture of open ended% closed ended questions@ 7ating scales were also used for collecting certain information" Pre;Testing: Pre;testing was done among limited dealers and subsequently suitably modifications with respect to wording% sequence and format was made in the questionnaire" !ode of contact: Personnel inter/iew is used for contacting the dealers" $!!(72DD0 (3, AP6 3imited% journals of organi9ation:s past documents of

Performance% which are a/ailable from library of the department"

#I"ITATIONS OF T0E STUDY

During the project period as some e4ecuti/es were busy either with their work% so they could not afford to gi/e full information"

The analysis and interpretation of collected data is restricted to necessary information" Due to the high work in the organi9ation ( couldn:t get proper information" The study is confined up to fi/e years only i"e"% from BCCD;BCCE to BCCF;BCCG" The analysis should not be applied to all the firms in the same industry" The study is limited of the company $!!(72DD0 (3, P7(+$T2D 3td"% only"

'H$PT27 B (.D1,T70 $.$30,(,

INDUST!IA# P!OFI#E

0ISTO!Y AND DE1E#OP"ENT P!OCESS OF OI# INDUST!Y<

(3 (.D1,T70 is one of the important industries in the world" ils ha/e become to play a /ital role in the economy of our country" These oils are not human diet but also are essential raw material for industrial products like soaps% paints% /arnishes and lubricants" These are many reasons fore/er growing demand for oils" The main reason is due to /arious factors such as increasing population rapid initiali9ation of the country and impro/ed standard of li/ing " it is with the recent liberali9ation of licensing and trade control policies of go/ernment% it is going to be further increase in the demand in the oils for human consumption and industrial purpose" il seeds are the most important crop after the food grains in (ndia" (ndia is one of the leading oil seeds and oil producing countries in the world" (n terms of production (ndia stands fourth" The first three being 1,$% 'hina and #ra9il" (ndia accounts for H"IJ of the world oil seeds production% F"IJ of the world:s production of the major protein meal and about KCJ of the world:s /egetable oil output" (t is the world:s largest producer of rapeseed" $n il seeds are the major source of edible oils in (ndia and assume importance% as oils of animal origin are not used in the country" (ndia is bestowed with such a /ariable $gro climatic conditions which pro/ides opportunity to grow oil seeds crop throughout the different ecological settings" (ndia produces nine major oil seeds /i9"% K6 Ground nut B6 ,esame D6 7apeseed E6 !ustard L6 ,unflower I6 ,oybean F6 .iger G6 3inseed H6 castor

(n addition to these% (ndia also produces coconut% cotton seeds% oil bearing material rice;bran and tree origin seeds which are considered to be the secondary Anon con/entional6 sources of oil" (n our search for self;sufficiency" We ha/e introduced culti/ation of oil palm" Ground nut in our country" (n the changing scenario of oil seeds production" (n the country soya bean and sunflower ha/e now occupied third and fourth places after ground nut and mustard"

.ow a day:s (ndia has been facing the problems of shortage and rises in the price of oils" (t is during problems from the BCyears" The situation is due to the problem in the production of major oil seeds groundnut% mustard% sesame% sunflower% soybean% linseed and caster seed" The presently a/ailable sources of oils in (ndia can be di/ided as follows: K" Perennial oil seed plant like coconut and palm" B" $nnual oil seeds like ground nut% rapeseed% mustard% sesame% .iger% sunflower% soybean% caster and linseed out of this castor and linseed are non;edible types" D" !inor oil seeds like sale% neem% karanja% kusum% mahu/a etc" E" il obtained through technological process such as e4traction from rice bran% cotton seeds We are at present tapping about BLJ to DCJ of a/ailable potential for production in all the abo/e sources" $ll these oils seeds ha/e different yields of oil per unit area% depending in their oil content and yields of oil seeds per unit area"

The following table gi/es the a/erage yields of oils per unit area for /arious oil seeds:

A1E!AGE YIE#D OF OI# PE! UNIT A!EA<

OI# SEED Palm 'oconut .iger 'astor ,esame !ustard 3inseed Ground nut

A1E!AGE OI# YIE#D(IN #A;0S DBCC;DLCC KHCC;BCCC KFL;BCC BCC;BBL DCC;DBL DLC;DFL ECC;ELC ICC;IBL

(n (ndia most of production comes from rainfall areas% and hence there are wild flu4ion in production in owing to monsoons% progress in the e/olution and introduction of high % yielding hybrid% /arieties are poor" When compared to wheat% rice and cotton etc" wing to these factors% yield per hector is /ery low"

(n these circumstances oil seeds production has to be stepped up and self sufficiency should be achie/ed as early as possible% hence our goal is to achie/e self;sufficiency in the production of the oils with in shortest possible span of time"

G!O=T0 OF INDIAN OI# SEEDS P!ODUCTIONS<

The demands for /egetables oils and oil meals ha/e been increasing o/er period of time" (ndia:s oil seeds production gone up from Lmillion tones to our BK"L million tons between KHLC andKHHL" There is an increase in the growth of ground nut% castor seed resume rapeseed and mustard" There offer soya bean% sunflower and bigger" During the period between KHLC to KHGC when we compare with population% there is growth rate in food grains B"LL growth rate of food grains as well as BJ growth rate of population" Howe/er quantum jump registered in oil seeds production between KHGF;GG to KHHF;HG was from KB"IL million tones to o/er BKmillion tones" The estimated production for the year KHHG;HH was BK million tones" The actual production for the year KHHG;HH was BB million tones" Population wise (ndia stands is second position in the world" The consumption of edible oils in (ndia is /ery low (ndian consumption rate of edible oils in (ndia is /ery low" (ndian consumption rate of edible oils is Ikgs per head" Whereas consumption in our country is lower than consumption in some of the de/eloping countries" 2/en at this consumption le/el there is shortage of edible oils in the country" The per capital consumption of edible oils is increasing with the increase in purchasing power and standard of li/ing of the people and along with the increase in demand and the demand and the supply gap is further increased"

Through our country is one of the leading producers of oils needs the demand and supply gap is increasing persistently which is forcing huge imports of edible oils the import bill of edible oil e4ceeds 7s"KCCC crores a year" (ndia is probably the largest producer of edible oils in the global market"

The quantum of imports of /egetable oils o/er a period of year is gi/en in the table"

I"PO!TS OF 1EGETA)#E OI#S

YEA!

I"PO!TS (!+. I- la?2+

5668965 566596& 566&96' 566'96% 566%96> 566>96(

8'.@( 87.8@ &.(& @.66 88.66 8&.>5

(t is clear from the table that the imports of edible oils gradually increase from the year BCCC;CK to BCCB;CD and then slowly fell" (t is obser/ed that supplying of our production"

1EGETA)#E OI# P!ODUCTION IN INDIA DU!ING T0E PE!IOD F!O" 8@@'9@% TO 566>96(<

+2G2T$#32 (3 P7 D1'T( . 02$7 KHHE;HL KHHL;HI KHHI;HF KHHF;HG KHHG;HH KHHH;BCCC BCCC;CK BCCK;CB BCCB;CD BCCD;CE BCCE;CL BCCL;CI BCCI;CF A7s" (n lacks6 DF"LB DK"DC DF"BC DL"CC DI"FL DH"DL DH"EC LE"CC LI"CC LL"CC LG"CC IC"CC ID"CC

$bo/e table shows information relating to production of /egetables oil in our country" (t is e/ident from the table that the production of /egetable oil has been gradually increasing"

The growth was made possible by the efforts of technology% mission on oil seed" 7eali9ing the importance of the oil seeds crops and the role of edible oil in the food and nutrition surety and to check the foreign e4change balances from falling oil seeds was

brought under the technology mission in KHGI by go/ernment of (ndia" The annual growth rate of production was KCJ between KHGF;GG and KHHB;HD% the o/erall growth of oil seed production M soya bean% sunflower% rapeseed and castor grew at a faster rate between KHGF; GG to KHHL;HI"production of sunflower seed increased byKKLJ i"e" from D"L million tones to I"K million tones and production of castor increased by KCCJ i"e" from C"B million tones to C"GC million tones" Whereas groundnut seed registered on o/erall growth of KLL only during the same period" (t is interesting to note that all these there oil seeds increased to FBJ in oil seeds production from KHIC to KHHC" 'onsequently the share of ground nut in the basket of oil seeds fell down from ELJ to DL"LJ during the same period" $gain it is noted that out of these three oil seeds% two of them i"e" soybean and sunflower were relati/ely unknown and non;e4istent crops respecti/ely in our country"

I"PO!TANCE OF T0E P!ODUCT<

.on;trading oil can play an important part in the achie/ement of oil self;sufficiency in our country" 'otton seeds ha/e already established itself as an important oil source" 7ice bran is fast catching up with cotton seeds" 7ice bran has great potential in the future" The minor oil seeds of free origin are slowly gaining importance% mainly because of their low cost" (n the policy makers can encourage or e/en force the industries to e4ploit /ast qualities of minor seeds% the edible oil as well as non;edible demand can be met satisfactory"

OI# F!O" )Y9P!ODUCTS OF T0E INDUST!IES<

There are se/eral by;products of /arious agro based industries which can be utili9ed to obtain oil either industries or edible purpose" 'ottonseeds% groundnut cake% rice bran are presently the important sources"

!ICE )!AN:

The spectra of scarcity of oils has been haunting our national economy in different degrees e/er since the beginning of se/enties lately since KHFF huge imports of oils ha/e become a necessity to arrest the rise in prices and kept the demand of oil and met the demand and supply gap by spending huge foreign e4change ne4t to crude oil" The crisis has become more serious on account of stagnancy in the production of traditional oil seeds mainly ground nut and mustard on one land% an ineffecti/e utili9ation of the /ast resources of oils% which can be a/ailable to us" #y tapping rice bran and minor oil seeds of free origin and not adopting a concrete national policy on the other" (n fact the rice bran oil can augment substantial quantity of oil in the country like many $sian countries including 8apan% #urma and Thailand where rice bran oil has come to stay as a cooking medium and also for industrial purpose"

'onference organi9ed by the sol/ent e4tractors association of (ndia in KHHF on rice bran oil is of the significant trials taken up by our industrial organi9ation in the field of oils" ,ince a slightest like in import price of crude oils brings our marked change in (ndian markets especially of oils" (n inflation rate of general goods in general is abo/e BCJ" (t is surprised to learn that in case of oils inflation is abo/e DCJ" There is still a danger in sight as Go/ernment has no other grow e4cept to resort to fi4 the inflationary prices to be standard prices in order to fill reser/oirs of resources and to meet the defect budget"

!any learned and eminent industries% and technologists and manufacturers speak about moderni9ation of rice bran processing to produce quality with low F.F.A content by installing stabili9ers of three of four /arieties and to e4tract oil with KCJ toKLJ suitable for industrial purpose by refining scope of e4ploitation of complete bran a/ailable in (ndia for production"

,T$T2W(,2 P7 '2,,(.G '$P$'(T0 & 7('2#7$. (. (.D($ :

STATE

DAI#Y P!ODUCTION

ANNUA# P!ODUCTION

$.DH7$ P7$D2,H $,,$! D23H( G18$7$T H$70$.$ -$7.$T$-27$3$ !"P !$H$7$,T7$ 7(,,$ P1.8$# 7$8,TH$. T$!(3 .$D1 1TT$7 P7$D2,H W2,T #2.G$3 P .D('H270 BHDB FBC KLC

FEBL KKC CDC KFEC KIGL BCLC EFC BIHC KFKL KEC BLGC BIGC KDDC GFHICC BKICCC ELCCC

BBBFLCC DDCC HCCC LBBCCC LCLCCC IKLCCC KEKCCC GCFCCC LKELCC EBCCC FFECCC BCECCC DHHCCC

!ICE )!AN OI# (!)O IS SET TO !EP#ACE )ATC0ING OI#

The (ndian jute mills association A(8!$6 under an aided project and the (ndian jute industrial research association A8(7$6 has recently de/eloped our free agro based 7# AGrade;((6 as a substitute of petro based oil and .eem oil for de/eloping a suitable lubricant for jute industry" &inally% 7# has been found to be the most suitable and has been put to trail with

the tempo of some jute mills" (8(7$ has organi9ed a seminar on application of 7# as a jute softener at $nglo (ndia jute mills% jagatdal% jute technologists and representati/es of the jute mills ha/e participated in the seminar among other delegates" The de/elopment of an agro based lubricant for processing jute fibers will ha/e a far reaching impact on the jute industry as many de/eloped packaging material of jute containing traces of hydro;carbon for packing food grains and other food products" (ncidentally% being a mineral oil rich in hydrocarbon traction" 8# ha9ard by them" $ large scale of stagnation in /egetable oil production in the face of raising demand and e/ery critical position of foreign e4change balance" 3ead the go/ernment to launch a massi/e plan to attain self;sufficiency in the country" 7adical impro/ements were made in hori9ontal and as well as in /ertical growth" #oth made a depth in producti/ity and there by supply position was encouraging and imports registered a steep fall since KHGG;GH% the imports came down substantially between KHGG;GH and KHHB;HD" !ore or less self;sufficiency in edible oil was achie/ed" #etween KHGF;GG to KHHB;HD the annual production growth rate was KCJ" (t is a higher achie/ement" is considered as a health

PE! CAPITA CONSU"PTION

ur per capita consumption of oils has gone up from I"Ekgs in KHGH;HC to G"Lkgs in KHHL;HI" 0et it is much below the global a/erage of KL"Gkgs as against EI"Bkgs"% in 1","$ and EK"Lkgs% in other de/eloped countries" This indicates that there is a considerable scope for demand for the consumption of oils"

EAPO!TS

(t is noteworthy feature that (ndian oil seed sector turned into net foreign e4change earner since early KHHC:s" (t is also estimate that this will remain so e/en if the oil imports touch a high of B"Cmillions tones in the year of shortage in future" This indicates that this sector is self;reliant" There is a great opportunity for e4porting the (ndian oil meals to the $sian region% where feed consumption is growing NFJ p"a"% /is;a;sis KJ in 1,$ and Western 2urope% particularly% gi/en our pro4imity to these markets" The products e4ported are 'astrol oil% oil meals% HP, groundnut and sesame seed" emerging integrated players" The edible bran is also being purchase by poultry units in our country e/en based on optimistic growth meal requirements of the feed industry and a conser/ati/e estimate of oil seed production" e4port" ur projection indicates that (ndia will ha/e surplus meals a/ailable for ur e4ports ha/e touched a phenomenal figure of 1, OIDD million of oil seed sector" There is a growth in the feed business and the trend of

G#O)A# CO"PETITI1ENESS

There is impro/ing competiti/eness of the (ndian oil sector as seen from the following two parameters and also gi/es enabling measures taken to be taken by the go/ernment to achie/e the same" 'urrent (ndian prices of oil seeds and oils respecti/ely are higher KCJ and LCJ when compared to the prices pre/ailing in other origins /s"BLJ and GLJ" $nother key parameter is the comparison of shares of meal and oil /alues in the combined product re/enues" Traditionally% (ndia has a relati/e higher share of oils /alues +s international norms and this trend is now mo/ing slowly in line with global /alues" This is happening as the tariff and no tariff barriers are getting reduced or remo/ed for imports" 2conomically% the nation is going to be a net gainer through these trade changes% but self sufficiency in edible oils would be under threat unless the focus shifts from o/er playing with the price instrument to its producti/ity augmentation>" The demand for edible oil is likely to rise much faster than the demand for cereals due to rising income" The question% which arises at the point% is how (ndia is going to bridges the edible oil demand supply gap@ (s it through the import route@ Well% there are also other options a/ailable to country such as (ncrease the yield of oilseed per hectare Greater e4ploitation of the potential of non;con/entional oil +igorous implementation of oil palm culti/ation (mport of oil seeds"

'H$PT27 D
(.D1,T70 P7 &(32

CO"PANY P!OFI#E

$mmi 7eddy oil limited A$ 36 was formerly known as ,asidhar 2dible Grade

ils

(ndustries Pri/ate 3imited" it was incorporated in the year KHGD with an installed capacity of KLC TPD" ,ri -" ,ubbi 7eddy% ,ri" -" .arayana 7eddy and their associates are the major promoters of the company" (n the year KHGE ,ri" Padala $mmi 7eddy the then !"3"$"% of the $naparthi 'onstituency was appointed as the !anaging director who died in KHGI" $s a mark of respect to him the company was renamed after him% as !<s" $mmi 7eddy ils limited in KHGH" The factory is located at $naparthy" The land of $naparthy is /ery much fertile for the culti/ation of paddy" $naparthy is connected by rail% road and canal" The companyPs installed capacity was increased from KLCTPD in the year KHGH by adding additional machinery" $gain in KHHE;HL the installed capacity was increased from BCCTPD to BLCTPD and then from BLCTPD to BHCTPD" The affairs of the company were pre/iously managed by ,ri" k" subbi 7eddy% !anaging Director% ,ri" -" satyanarayana 7eddy% Director and other Directors of the company along with other functional heads under the chairmanship of ,ri" -" Gangi 7eddy up to $ugust KHHI" The company restructured its board of directors in the month of $ugust KK% KHHI with a /iew to strengthen its management"

INF!AST!UCTU!E FACI#ITIES

$ll the infrastructure and productions facilities are a/ailable to the unit and the a/ailability of the raw material rice bran is assured on account of large number of large rice mills operating in the 2ast Goda/ari district"

!A= "ATE!IA#

The directors and their associates are ha/ing their own rice mills and there is no problem to anticipate in producing raw material rice bran% as the crop is good in rabbi and kharif seasons"

0EAANE

He4ane% which is one of the critical raw material used in sol/ent e4traction process A,2P6 units% is at present a/ailable freely from (ndian il 'orporation A( '6 and no difficulties are foreseen in producing the same in required quantities"

PO=E!
ELC-+$ transformer has been installed for the plant and this will be sufficient for the requirements of $ 3" The company also has a BLC-+$ generator set as an alternati/e to meet power cuts and power shortages"

T!ANSPO!T
The company owns three /ehicles to transport oil and also engages the ser/ices of local transport contractors" They are located near $naparthi 7ailway ,tation and -akinada ports% through which De il bran AD #6 is e4ported"

#A)OU!
There is no problem of shortage of labour in the district* the company engages contract labour without any difficulty"

=ATE!

The company has a bore;well and also a permit from PWD to get water from the nearby canal"

"ANUFACTU!ING P!OCESS

The manufacturing process comprises of con/erting raw bran into pellets by feeding rice bran through palleti9es" The sol/ent plant consists of two separate e4tractors% one for edible grade and other for non;edible grade into which then rice bran pellets are charged" (n each of the e4tractors the e4traction process takes place continuously% counter;current flow of normal He4ane and for finally the miscellaneous A7# (3QH2R$.2:, !(RT1726 is withdrawn by means of pumps into two separate micelle;holding tanks"

The two e4tractors then discharge the e4tracted menAde oiled rice bran6 into a common con/eyor% which takes the material to stream heated dryers where the he4ane is re circulated into the e4tractors by means of pumps" The dried de oiled meal from the dryers drops into streaming pans where the final traces of he4ane is stripped off by direct injecting streams and such de oiled meal is taken by means of a con/eyor to conditioning selection where it is bagged"

!anufacturing cycle starts with purchase and use of raw material and completes with production of finished goods" 3onger the manufacturing cycle% large will be the firm:s working capital requirements" $n e4tended manufacturing time span means a larger tie;up of funds in in/entories" Thus% if there are alternati/e ways o manufacturing a product% the process with the shortest manufacturing cycle should be chosen" nce a manufacturing process has been selected it should be ensured that manufacturing cycle is completed within the specified period" This needs proper planning and coordination at all le/els of acti/ity" $ny delay in manufacturing process will result in accumulation of work in process in waste of time" (n order to specifically to firms manufacturing industrial products% ha/e a policy of asking for ad/ance payments from their customers" .on;manufacturing firms% ser/ices and financial enterprises do not ha/e any manufacturing cycle"

"ANUFACTU!ING ACTI1ITES
$ 3 has been producing oil from rice bran" The consumption of edible oils of $ 3 impro/es the standard of li/ing" The edible oil is directly sent to the dealers without any product features like packing% branding etc" the company process both the raw and boiled qualities of rice bran continuously ICJ of raw bran and ECJ of boiled bran" #eing an agro based industry" $ 3 mainly depends upon rice bran% which can be procured from the local rice millers% mainly from 2ast and West Goda/ari and -rishna Districts" He4ane is an intermediate raw material% which can easily be produced through HP'3% ( ' etc" $ 3:s main product is crude edible oil* it has demand% which outstrips its supply" There are no Go/ernment controls on any of the products to be marketed by $ 3" $ 3 has been maintaining its own pricing strategy" $ 3 has been paying DJ ta4 as $PG,T on de oil rice bran to state go/ernment" $ll the products of $ 3 are channeli9ed through ,T' and distributed to the +anaspathi units and to public through public distribution system" $ 3 has been maintaining three authori9ed brokers" K" .a/ajee/an #rokers at Hyderabad" B" 3akshmi $gencies at !umbai and D" #rome4 at 'hennai" $ 3 has been paying K"LJ commission on sales to the brokers"

E"P#OYE"ENT<
K" ,uper/isor le/el persons B" ,killed persons D" ,emi and unskilled ;; KF ;; BL ;; DI

FINANCIA# AND CO""E!CIA# POSITION

The company has been e4clusi/ely hypothecated with ,tate bank of (ndia right from inception i"e" KHGD and is presently enjoying a cash credit AH0P6 limit of 7s"BCC lakhs with a sub limit of 7s" KCC lakhs as 2"P"' besides D"D<#ills<cheques discounting limit of 7s" BCC lakhs and a guarantee limit of 7s" KClakhs in ,#( branch% $naparthi" (n this connection it is to be stated that with the continued financial support and needed guidance being pro/ided all along able to grow from strength to strength and ha/e become eligible to draw a higher le/el of working capital finance of 7s" BCC lakhs in the year KHHK from a mere limit of 7s" ED lakhs in the year KHGIin the back drop of increased /olume of production operations" The company has strengthened all concerns of its administration and internal

controls" ,ri" ," ,atyanarayana 7eddy ("'"W"$"% one of the directors of the company is looking after the internal controls and the cost system of the company" ,ri" T" ,udhakar 7eddy% !"#"$"% is a shareholder of the $ 3 and is looking after personnel and administrati/e matters of the company" The company is ha/ing sufficient e4perienced staff in the accounts and other Departments for the running and working of the company" The company proposes to achie/e ma4imum production by utili9ing the ser/ices of the abo/e personnel with a main object to utili9e FCJ capacity of the plan and to initially and to achie/e total capacity utili9ation in the coming years" (n this connection the student trainee wants to stay that it is a seasonal industrial unit which needs more working capital to enable it to store ma4imum stocks during the unseasoned period which occurs two times in a year" 1nder these circumstances the company needs financial assistance with the enhancement of its working capital limits from 7s"BCC lakhs to 7s" DCC lakhs initially and other limits such as D"D<#ills<'heques discounting and bank guarantee at the same le/els"

"AN PO=E! PA!TICU#A!S

The total man power in $ 3 is BLC% out of them BL are skilled workers% DI are semi; skilled worker and the rest of workers are contract lab our" (n addition to this manpower there are KF super/isors working under the different functional mangers" The company has been maintaining a good harmonious relation among workers" The management of $ 3 has been pro/iding pro/ident fund% Gratuity and 2,( facilities to its work force" The industrial relations in $ 3 are harmonious and peaceful" (t is ob/ious that the management of $ 3 pro/ided recreation facilities to its workers" The company has been maintaining canteen facilities with subsidy rate to the employees"

DE"AND AND "A!;ET

The main products of the 'ompany% namely the on edible crude oil which are used in soap manufacturing are being purchased by H1.D1,T$. 32+27 3(!(T2D% G D728% !T !' % W(P7 etc" The edible grade crude oil is so far being sold to refineries located in 2ast Goda/ari and West Goda/ari District" Poultry units in the 2ast Goda/ari District are purchasing the deoiled bran" The company is also e4porting D # to Hamburg% Hong -ong% ,wit9erland% 1"-" and 7ussia" The finished product i"e"% crude oils and e4traction are sold in bulk through brokers which is in dynasty practice" The brokers are paid commission N 7s" C"LJ and they are also responsible for reali9ation of sale proceeds" The arrangements are considered adequate to market the company:s product" $ 3 is techno;economically /iable" ( was aligned with national properties has high employment potential on a relati/ely small capital base further the project is relati/ely pollution free" Hence $ 3 has bright prospects"

"B+. A""I !EDDYOI#S #I"ITED 9 ANAPA!T0Y

.$!2 & TH2 1.(T 3 '$T( . : !<," $!!(72DD0 (3, 3(!(T2D : KD;KGH% $.$P$7TH0 2$,T G D$+$7( D(,T7('T% $.DH7$P7$D2,H 02$7 & (.' 7P 7$T( . : KHGD (.,T$332D '$P$'(T0 : KHGDS""KLC TPD KHGHS""BCCTPD KHHES""BDCTPD BCCKS""BHCTPD $'T(+(T0 7$W !$T27($3 : 7('2 #7$. (3 #0 , 3+2.T 2RT7$'T( . P7 '2,, : 7('2 #7$.

UTI#ITES
P W27 W$T27 D(2,23 ,T2$! #$.-27, .$T172 & &(.$.'2 : $P,2# $.D '$PT(+2 G2.27$T( . : # 72 W233% P2. W233 $.D '$.$3 : 3 '$3 !$7-2T : W. # (327 : ,T$T2 #$.- & (.D($% $.$P$7TH0 : '$,H '72D(T H0P TH2'$T( . W 7-(.G '$P(T$3 3 $. & BCC3$-H, 2RP 7T P$'-(.G '72D(T 7s"KLC3$-H," $1TH 7(,2D '$P(T$3 P$(D;1P '$P(T$3 : D% LC%CCC 2?1(T0 ,H$72, of 7s" KCC<;each : D% BL%CCC 2?1(T0 ,H$72, of 7s"KCC<;each"

)OA!D OF DI!ECTO!S IN AO#

K" ,ri ,"$!!(72DD0

; 'H$(7!$. 5 !$.$G(.G D(72'T 7

B" ,ri ," -7(,H.$72DD0 D" ,ri -" ,$T0$.$7$0$.$72DD0 E" ,ri !" $D(.$7$0$.$ 72DD0 L" ,ri ." ,$T0$.$7$0$.$ 72DD0 I" ,ri #"+"+"7$!$ 72DD0 F" ,ri -" ,7(.(+$,$ 72DD0 G" ,ri -" ,$T0$.$7$0$.$ 72DD0 H" ,ri ,","+" 8$.$7DH$.$ 72DD0

; D(72'T 7 ; D(72'T 7 ; D(72'T 7 ; D(72'T 7 ; D(72'T 7 ; D(72'T 7 ; D(72'T 7 ; 8 (.T !$.$G(.G D(72'T 7

O!GANISATION ST!UCTU!E OF AO#

S0A!E 0O#DE!S )OA!D OF DI!ECTO!S

PE!SONA# ASSISTANCE

"ANAGING DI!ECTO!S

STENOBTYPIST

P!ODUCTION

FINANCE "A!;ETING

PE!SONA#

SECU!ITY

C0IEFC0E"IST

ACCOUNTANT

SA#ES "ANAGE! PE!SONA# OFFICE! SECU!ITY OFFICE!

ABC ASSISTANTS ('

DIST!ICT FIE#D OFFICE!

ASSISTANTS (5 CAS0IE!S (5 TYPIST

SE!1ICE ENGINEE!S (8 #A)O!ATO!IES A!TS (' "EC0ANICS (5 FO!E "AN (5 )OI#E! OPE!ATO!S E#ET!ICIANS (5

ASSISTANT SECU!ITY OFFICE! SECU!ITY GUA!DS (8% #OADING "AN T!UC; D!I1E!S (7 GOD=AN ;EEPE!S (5

C0APTE! ' T0E!IOTICA# CONCEPT OF C0ANNE#S OF DIST!I)UTION

=0AT IS A C0ANNE# OF DIST!I)UTION

$ distribution channel consists of the set of people and firms in/ol/ed the flow of title to product as it more from producer to ultimate consumer or industrial uses" $ channel

of distribution always includes both the producers and the final customer for the product is its present from as well as any middlemen" !arketing channels are sets of interdependent organi9ation in/ol/ed in the process of marketing a product or ser/ice a/ailable for use or consumption" !ost producers do not sell their goods directly to the final users" #etween them stands a set of intermediaries performing a /ariety of functions" These intermediaries constitute a marketing channel" ,ome intermediaries such as whole sellers and retailers% buyers take title to% and resell the merchandise they are called merchants% other Mbrokers% manufacturer:s representati/es" ,ales agent search for customers and many negotiate on the producer:s behalf but do not take title of goods% they are called agents% still others transportation companies% independent warehouses% banks% ad/ertising agencies; assist in the distribution process but neither take title to goods nor negotiate purchases or sales% they are called facilitators" #esides producers% middlemen and final customer% other institutions and the distribution process"

C0ANNE#S OF DIST!I)UTION
$ distribution channel is a set of interdependent organi9ation in/ol/ed in the process of making a product or ser/ice a/ailable for use or consumption to the consumers or to the industrial user"

Defi-itio-:
$ channel of distribution Asometimes called a trade channel6 for a product is the route taken by the title of the goods as they mo/e from the producer to the ultimate customer of industrial users" AWilliam j"stantion6

Distribution is all about getting your product<ser/ice to the right people at the right time with special consideration for profit and effecti/eness" ,uccessful marketing does not end when a business has de/eloped a product<ser/ice and has found its appropriate target audience with a /iew to selling it at the Tright priceT"

The ne4t issue that needs to be faced is how they are going to distribute and sell this product<ser/ice to these people; the consumers" When a product<ser/ice is purchased by a consumer% it may ha/e been bought directly from the business% or it may ha/e been through a number of intermediaries Awholesaler% retailer% etc6: these are known as distribution channels" ,mall businesses need to acknowledge the different types of distribution channels to utili9e sales potential" $fter reading the article% you may learn that you could increase sales or profit by using a different distribution channel to the one that you currently use" Distribution channels are influenced largely by the type and si9e of the business and so some of the channels e4plained may not be feasible for your particular business" 'onsequently% you may take note that these channels could be adopted in the future to accommodate for any changes and to help your business grow"

Fir3 level obCe?tive+: (t is not enough to simply state a firm:s goal as ma4imi9ing the
present /alue of total profit since this does not differentiate it from other firms and says nothing about how this objecti/e is to be achie/ed" (nstead% a business and marketing plan should suggest how the firm can best put its unique resources to use to ma4imi9e stockholder /alue" $ number of resources come into playUe"g""

Distincti/e competenciesUknowledge of how to manufacture% design% or market certain products or ser/ices effecti/ely* &inancialUpossession of cash or the ability to raise it* $bility and willingness to take risk; The image of the firm:s brand; People who can de/elop new products% ser/ices% or other offerings and run the needed supports* 7unning facilities Ano amount of money is going to get a new microchip manufacturing plant started tomorrow6* and 'ontacts with suppliers and distributors and others who influence the success of the firm"

"ar2et bala-?e:
(t is essential that different firms in the same business not attempt to compete on e4actly the same /ariables" (f they do% competition will in/ariably degenerate into priceU there is nothing else that would differentiate the firms" Thus% for e4ample% in the retail food

market% there are low price supermarkets such as &ood E 3ess that pro/ide few if any ser/ices% intermediate le/el markets like 7alph:s% and high;end markets such as +ons: Pa/ilion that charge high prices and claim to carry superior merchandise and offer e4ceptional ser/ice

!i+2:
(n general% firms that attempt riskier /enturesUand their stockholdersUe4pect a higher rate of return" 7isks can come in many forms% including immediate loss of profit due to lower sales and long term damage to the brand because of a poor product being released or because of distribution through a channel percei/ed to carry low quality merchandise"

)ra-d level obCe?tive+:

1ltimately% brand le/el profit centers are e4pected to contribute to the o/erall ma4imi9ation of the firm:s profits" Howe/er% when a firm holds se/eral different brands% different marketing and distribution plans may be required for each" ,e/eral /ariables come into play in ma4imi9ing /alue" Profits can be ma4imi9ed in the short run% or an in/estment can be made into future earnings" Product profit can be measured in se/eral ways" (f you sell a computer that cost OHLC to make for OK%CCC% you are making only a LJ gross profit" Howe/er% selling a product that cost OL to make for OKC will result in a much higher percentage profit% but a much lower absolute margin" $ decision that is essential at the brand le/el is positioning" ptions here may range from a high quality% premium product to a lower priced /alue product" .ote here that the same answer will not be appropriate for all firms in the same market since this will result in market imbalanceUthere should be some firms percei/ing each strategy% with others being intermediate" Distribution issues come into play hea/ily in deciding brand level strategy" (n order to secure a more e4clusi/e brand label% for e4ample% it is usually necessary to sacrifice /olumeUit would do no good% for !ercedes;#en9 to create a large number of low priced automobiles" ,ome firms can be /ery profitable going for quantity where economies of scale come into play and smaller margins on a large number of units add upUe"g"% !cDonald:s sur/i/es on much smaller margins than upscale restaurants% but may make larger profits because of /olume" ,ome firms choose to engage in a inching strategy where they forsake most customers to focus on a small segment where less competition e4ists Ae"g"% clothing for /ery tall people6" (n order to maintain one:s brand image% it may be essential that retailers and other channel members pro/ide certain ser/ices% such as warranty repairs% pro/iding information to customers% and carrying a large assortment of accessories" ,ince not all retailers are willing to pro/ide these ser/ices% insisting on them will likely reduce the intensity of distribution gi/en to the product"

Prod,?t li-e obCe?tive+:

&irms make money on the totality of products and ser/ices that they sell% and sometimes% profit can be ma4imi9ed by settling for small margins on some% making up on

others" &or e4ample% both manufacturers and retailers currently tend to sell inkjet printers at low prices% hoping to make up by selling high margin replacement cartridges" Here again% it may be important for the manufacturer that the retailer carry as much of the product line as possible"

Distribution Objectives Objectives:

$ firm:s distribution objecti/es will ultimately be highly relatedUsome will enhance each other while others will compete" &or e4ample% as we ha/e discussed% more e4clusi/e and higher ser/ice distribution will generally entail less intensity and lesser reach" 'ost has to be traded off against speed of deli/ery and intensity Ait is much more e4pensi/e to ha/e a product a/ailable in con/enience stores than in supermarkets% for e4ample6"

Narrow vs. wide reach:

The e4tent to which a firm should seek narrow Ae4clusi/e6 /s" wide Aintense6 distribution depends on a number of factors" ne issue is the consumer:s likelihood of switching and willingness to search" &or e4ample% most consumers will switch soft drink brands rather than walking from a /ending machine to a con/enience store se/eral blocks away% so intensity of distribution is essential here" Howe/er% for sewing machines% consumers will e4pect to tra/el at least to a department or discount store% and premium brands may ha/e more credibility if they are carried only in full ser/ice specialty stores" 7etailers in/ol/ed in a more e4clusi/e distribution arrangement are likely to be more )loyal>Ui"e"% they will tend to

7ecommend the product to the customer and thus sell large quantities* 'arry larger in/entories and selections* Pro/ide more ser/ices

Thus% for e4ample% 'ompaq in its early history instituted a policy that all computers must be purchased through a dealer" n the surface% 'ompaq passed up the opportunity to sell large numbers of computers directly to large firms without sharing the profits with dealers" n the other hand% dealers were more likely to recommend 'ompaq since they knew that consumers would be buying these from dealers" When customers came in asking for (#!s% the dealers were more likely to indicate that if they really wanted those% they could ha/e themU)#ut first% let:s show you how you will get much better /alue with a 'ompaq">

Di+trib,tio- opport,-itie+:

Distribution pro/ides a number of opportunities for the marketer that may normally be associated with other elements of the marketing mi4" &or e4ample% for a cost% the firm can promote its objecti/e by such acti/ities as in;store demonstrations<samples and special placement Afor which the retailer is often paid6" Placement is also an opportunity for promotionUe"g"% airlines know that they% as )prestige accounts%> can get /ery good deals from soft drink makers who are eager to ha/e their products offered on the airlines" ,imilarly% it may be useful to gi/e away% or sell at low prices% certain premiums Ae"g"% T; shirts or cups with the corporate logo"6 (t may e/en be possible to ha/e ad/ertisements printed on the retailer:s bags" ther opportunities in/ol/e )parallel> distribution Ae"g"% ha/ing products sold both through con/entional channels and through the (nternet or factory outlet stores6" Partnerships and joint promotions may in/ol/e distribution" Ae"g"% #urger -ing ,ell:s clearly branded Hershey pies6"

De?idi-4 o- a +trate4y
(n /iew of the need for markets to be balanced% the same distribution strategy is unlikely to be successful for each firm" The question% then% is e4actly which strategy should one use@ (t may not be ob/ious whether higher margins in a selecti/e distribution setting will compensate for smaller unit sales" Here% /arious research tools are useful" (n focus groups% it is possible to assess what consumers are looking for an which attributes are more important" ,canner data% indicating how frequently /arious products are purchased and items whose sales correlate with each other may suggest the best placement strategies" (t may also% to the e4tent ethically possible% be useful to obser/e consumers in the field using products and making purchase decisions" Here% one can obser/e factors such as AK6 How much time is de/oted to selecting a product in a gi/en category@ AB6 How many products are compared@ AD6 What different kinds of products are compared or are substitutes Ae"g"% fro9en yogurt /s" cookies in a mall6% AE6 What are )complementing> products that may cue the purchase of others if placed nearby@ 'hannel membersUboth wholesalers and retailersUmay ha/e /aluable information% but their comments should be /iewed with suspicion as they ha/e their own agendas and may distort information"

C.a--el Str,?t,re a-d "e3ber+.ip I++,e+ Paths to the customer.

&or most products and situations% it is generally more efficient for a manufacturer to go through a distributor rather than selling directly to the customer" This is especially the case when consumers need to ha/e / ariety and assortment Ae"g"% consumer would like to buy not just toothpaste but also other personal hygiene products% and e/en other grocery products at the same place6% when products are bought in small volumes or at low /alue Ae"g"% a candy bar sells for less than OK"CC6% or e/en intermediaries ha/e skills or resources that the manufacturer does not Aa sales force% warehousing% and financing6" .e/ertheless% there are situations when these conditions are not metUmost typically in industrial settings" $s an e4treme case% most airlines are perfectly happy only being able to buy aircraft and accessories from #oeing and would prefer not to go through a retailerUparticularly since the planes are often highly customi9ed" !ore in the VgrayV area% it may or may not be appropriate to sell microcomputers directly to consumers rather than going through a distributorUthe costs of pro/iding those costs may be roughly comparable to the margin that a distributor would take"

Potential channel structures.

'hannel structures can assume a /ariety of forms" (n the e4treme case of #oeing aircraft or commercial satellites% the product is made by the manufacturer and sent directly to the customer:s preferred deli/ery site" The manufacturer% may% howe/er% in/ol/e a broker or agent who handles negotiations but does not take physical possession of the property" When deals take on a smaller magnitude% howe/er% it may be appropriate to in/ol/e retailer;; but no other intermediary" &or e4ample% automobiles% small planes% and yachts are frequently sold by the manufacturer to a dealer who then sends directly to the customer" (t does not make sense to deli/er these bulky products to a wholesaler only to mo/e them again" n the other hand% it would not make sense for a 'alifornia customer to fly to Detroit% buy a car there% and then dri/e it home" $s the need for /ariety increases% a wholesaler may then be introduced" &or e4ample% an office supply store needs to sell more merchandise than any one manufacturer can produce" Therefore% a wholesaler will buy a /ery large quantity of binders% file folders% staplers% and reams of paper% glue sticks% and similar products and sell this in smaller quantitiesUsay BCC staplers at a timeUto the office supply store% which% in turn% may go to another wholesaler who has acquired telephones% typewriters% and photocopiers" .ote that more than one wholesaler le/el may be in/ol/edUa local wholesaler ser/ing the (nland 2mpire may buy from each of the two wholesalers listed abo/e and then sell all% or most% of the products needed by local office supply stores" &inally% e/en in longer channels% agents or brokers may be in/ol/ed" This% in particular% will happen when the owner of a small% entrepreneurial company has more e4perience with technology than with businesses negotiations" Here% the manufacturer can be freed% in return for paying the agent% from such tasks% allowing him or her to focus on what he or she does well"

Criteria i- +ele?ti-4 ?.a--el 3e3ber+.

Typically% the most important consideration whether to include a potential channel member is the cost at which he or she can perform the required functions at the needed le/el of ser/ice" &or e4ample% it will be much less e4pensi/e for a specialty foods manufacturer to ha/e a wholesaler get its products to the retailer" n the other hand% it would not be cost effecti/e for Procter 5 Gamble and Wal;!art to in/ol/e a third party to mo/e their merchandiseUWal;!art has been able to de/elop% based on its information systems and huge demand /olumes% a more efficient distribution system" .ote the important ca/eat that cost alone is not the only considerationUpremium furniture must arri/e in the store on time in perfect condition% so paying more for a more dependable distributor would be indicated" &urther% channels for perishable products are often inefficiently short% but the additional cost is needed in order to ensure that the merchandise mo/es quickly" .ote also that image is importantUWal;!art could /ery efficiently carry 7ole4 watches% but this would destroy /alue from the brand"

DPi44y9ba?2i-4D
$ special opportunity to gain distribution that a manufacturer would otherwise lack in/ol/es Vpiggy;backing"V Here% a manufacturer enlists another manufacturer that already has a channel to a desired customer base% to pick up products into an e4isting channel" &or e4ample% a manufacturer of rhino serous and hippopotamus shampoo might be able to reach 9oos by approaching a manufacturer of crocodile teeth cleaning supplies that already reaches this target" (n the case of reciprocal piggy;backing% the shampoo manufacturer might then% in turn% bring the teeth cleaning supplies through its e4isting channel to e4otic animal /eterinarians"

Parallel Di+trib,tio-"
!ost manufacturers find it useful to go through at least one wholesaler in order to reach the retailer% and it is simply not efficient for 'olgate to sell directly to pathetic little Vmom and popV neighborhood stores" Howe/er% large retail chains such as -;!art and 7alph:s buy toothpaste and other 'olgate products in such large /olumes that it may be efficient to sell directly to those chains" Thus% we ha/e a VparallelV distribution network whereby some retailers buy through a distributor and others do not" .ote that we may also be tempted to add a direct channelUe"g"% many clothing manufacturers ha/e factory outlet stores" Howe/er% note that the full ser/ice retailers will likely object to being VundercutV in this manner and may decide to drop or gi/e less emphasis to the brand" (t may be possible to minimi9e this contract by precautions such as AK6 ha/ing outlet stores located in /acation areas not within easy access of most people% AB6 presenting the merchandise as being slightly irregular% and<or AD6 emphasi9ing discontinued brands and merchandise not sold in regular stores"

Eval,ati-4 C.a--el Perfor3a-?e"

The performance of channel members should be periodically monitoredUa channel member may ha/e looked attracti/e earlier but may not% in practice be able to li/e up to promises" AThis can be either because of complacency or because the channel member simply did not reali9e the skills and resources needed to perform to standards6" Thus% performance le/el Aser/ice outputs6 and costs should be e/aluated" &urther% changes in technology or in the market place may make it worthwhile to shift certain functions to another channel member Ae"g"% a distributor has e4panded its co/erage into another region or may ha/e gained or lost access to certain retail chains6" &inally% the e4tent to which compensation is awarded in proportion to performance should be reassessedUe"g"% a distributor that ends up holding in/entory longer or taking on more returns may need additional compensation"

DIFFE!ENT TYPES OF C0ANNE# PO#ICIES<

'hannels policies are the frame work for the achie/ing channel objecti/es manufacture should constantly re/iew his channels policies and make sure that they are not only adequate" #ut are also the best in the situation" $s a matter of fact marketing policy can ne/er be permanent in changing% according to the products and the manufacturing area" The ultimate test of a policy must be its effecti/eness and economy of ser/icing customers" The channel of distribution policies which area adopted or chosen are from among the following methods or alternati/e"

INTENSI1E DIST!I)UTION PO#ICY<

(t is a policy where a producer seeks to use as many outlets as possible as many places as possible" The company follows the policy of mass distribution of con/enience goods such as ,weets% Toffees% and 'igarettes etc which can be purchased by consumers from different types of retail shops" (ntensi/e distribution is essential when the price of product is quite low buying is frequent and brand switching is common"

SE#ECTI1E DIST!I)UTION PO#ICY<

1nder this distribution policy the producer selects limited of wholesale and retail distributors and works clearly with them to further the sales of his products" The selecti/e distribution policy is suitable in case of branded or shopping goods which carry a high unit price and are not purchased as frequently as con/enience goods such as T"+ sets% washing machines% automobiles% and air conditioners etc% goods which require after ser/ices are often sold through selecti/e distribution outlets"

EAC#USI1E DIST!I)UTION PO#ICY<

This refers to the practice of selecting and plotting a particular distributor an e4clusi/e area of sales territory" $ distributor is appointed as in charge of sales territory for the sales of product for particular areas" The producer has to agree that he will not sell any one else e4cept the particular distributors in that territory" The distributor% in turns often agrees that he will ne/er deal or handle in any other competiti/e product or products" 1ltimately the e4clusi/e policy creates prestige or image of the product" ,uch as Godrej% refrigerator% !aruthi cars% #ajaj scooter etc"

CONSIGN"ENT SE##ING<
1nder this distribution policy goods are placed in the hands of the distributor Amiddle men6 with the title and control remaining in the hands of the producer" The distributor Amiddle men6 is neither the wholesaler nor the retailer but simply occupies the position of an agent" He usually gets commission on the sales affected together will the changes Ae4penses6 incurred by him" The producer who owns the goods specifies to the distributor Aagent6 the manner time and price of sale" The distributors neither under take any risks nor lose it" .ow a day this kind of distribution is not commonly seen"

F!ANC0ISEE SE##ING PO#ICY<

&ranchise means a pri/ileged or e4ceptional right granted to a particular person" &ranchisee selling is a system under which a producer grants the right to certain dealer or retailers to sell his product or ser/ice in generally defined are in e4change of a promise to promote and sell the product in specific manner in specific area" The owner Aproducer6 on the product issues a license to the dealer to sell the product or products in certain area only" The owner retains with himself the technique or style with which the good and ser/ices are sold" ,uch as the sale of coca cola soft drinks in (ndia" (n the same way weighting machines ha/e been installed in (ndia at railway platforms% cinema houses and hospitals etc"

Di+trib,tio-<
Distribution acti/ities are used to transfer ownership to consumers and to place products% ser/ices and idea at the right time and place" Distribution is making up of two components: 'H$..23, & D(,T7(#1T( . PH0,('$3 D(,T7(#1T( .

FUNCTIONS OF DIST!I)UTION C0ANNE#

$ distribution channel mo/es goods from producers to consumers" (t o/er comes the major time% place and possession gaps that separate goods and ser/ices from those who would use them" !embers of the marketing channel perform many key functions"

Information:
Gathering and distributing marketing en/ironment needed for planning and aiding change"

Promotion:
De/eloping and spreading persuasi/e for communication about an offer"

Contact:
&inding and communicating with prospecti/e buyers"

Matching:
,haping and fitting the offer to the buyers needs% including such acti/ities as manufacturing% grading% assembling and packaging"

Negotiation:
7eaching an agreement on price and other terms of the offers so that ownership or possession can be transferred"

Physical distribution:
Transporting and storing of goods"

Financing:
$cquiring and using funds to co/er the costs of the channel work"

is! ta!ing:
The first fi/e functions helps to complete transaction: the last three help fulfill the completed transaction"

I"PO!TANCE OF C0ANNE#S OF DIST!I)UTION

'hannels of distribution play a /ery important role in the flow of goods and ser/ices from the producer to the ultimate consumer" They are the back bones of marketing" The success or failure of a business enterprise depends on the role of channels of distributor" They had place utility and the tie utility" 'hannels ser/e the consumer to bring the goods to them in a con/enient shape% si9e% weight% unit% style and packing etc"% and thus ser/e con/eyance utility also" The channel of distribution helps the producer in the e4panding the market of his product from the local le/el to international le/el" They pro/ide a number of /aluable ,emites both to the producer and the customer" The importance of the channels of distribution of goals may be summari9ed as under: 'hannel of distribution helps the consumers to buy the goods at the time and place where of their con/enience" They create and place utilities to the buyer" 'hannels of distribution help the consumers to buy goods in con/enient unit:s lots packs and assorted /arieties of the products"

They help the producer in his production function by reli/ing him from marketing problems" Thus the producer can play his full attention to organi9ation the production function to earn a high rate of return" The channel of distribution pro/ides information to the producer regarding the tastes and needs of consumers% competition in the market% current market trend and product condition for increased /olume of sales because they ha/e complete knowledge of market" The channel of distribution help in stabili9ing prices of the products by stocking the goods and balancing demand and supply" 'hannel of distribution perform promotional acti/ities like ad/ertising personal selling and sales promotion etc"% so as assist the producer in achie/ing greater market share in sales and market co/erage of the product"

"A:O! C0ANNE#S OF DIST!I)UTION

There are fi/e channels are widely used in the marketing of consumer products"

K" P7 D1'27

' .,1!27,

The shortest% simplest distribution channel for consumer goods in/ol/es no middlemen" The producer may sell from door to door or by mail" &or instance% south western company uses college students to market its books as a known to house basis" B" P7 D1'27

72T$(327

' .,1!27

!any large retailers buy directly from manufacturers and agricultural producers"

'

D" P7 D1'27 ' .,1!27

WH 32,$327

72T$(327

(f there is a E traditional channels for consumer goods% this is% small retailers and manufacturers by the thousands final this channel the any economically feasible choice"

E" P7 D1'27

$G2.T

72T$(327

' .,1!27,

(nstead of using wholesalers many producers prefer to use agent middlemen to reach the retail market especially large;scale perform"

L" P7 D1'27

$G2.T 72T$(327

WH 32,$327 ' .,1!27,

To reach small retailers% the producers often use agent middlemen% who in turn call on wholesalers that sell to small stores"

FACTO!S AFFECTING C0OICE OF C0ANNE#S

(f a firm is customer oriented% consumer;buying palters should determine its channels"

A "A!;ET CONSEDE!ATIONS< $ logical staring point is to consider the needs and buying beha/ior of target markets" ". N#M$% OF PO&%N&I'( C#)&OM% ):
$ manufacturer with relati/ely few potential customers may use its own sales forces to sell directly to customers or business users" &or a large number of customers% the manufacturer would likely use middlemen"

*. +%O+ 'P,IC CONC%N& '&ION OF &,% M' -%&:

Direct sale to the te4tile or the garment manufacture ring industry is feasible because most of the buyers are concentrated in a few geographic areas" 2/en in the case of a national market% some segments ha/e a higher density rate than others" ,ellers may establish sales branches in density;populated markets and use middlemen in less concentrated markets"

.. O /% )I0%:
$ food products manufacturer would sell directly to large grocery chains because the large order si9e and total /olume of business make this channel economically desirable" The same manufacturer% howe/er% would use wholesalers to reach small grocery whose orders are usually too small to justify direct sales"

) P!ODUCT CONSIDE!ATIONS<
While there are numerous product related factors to consider% we will highlight three:

". #NI& 1'(#%<

The unit /alue of a product affects the amount of funds a/ailable for distribution" &or e4ample% a company can afford to use its own employee to sell nuclear reactor part that costs% say more than O KC%CCC"

*. P% ),'$I(I&2:
,ome goods including many agricultural products% physically deteriorate fairly quickly% other goods such as clothing% perish in a &aison sense perishable products require direct or /ery short channel"

.. &%C,NIC'( N'&# % OF ' P O/#C&:

$ business product that is highly technical after distributed directly to business users" The producer:s sale force must pro/ide considerable presale and post sale" ,er/ices wholesalers normally cannot do these consumer products of technical nature pro/ide a real distribution challenge for manufactures cannot he goods directly to retailers% but e/en then product ser/icing often poses problems"

C "IDD#E "EN CONSIDE!ATION<

Here we begin to see that a company may not be able to arrange e4actly the channels desires:; 83 )% 1IC% P O1I/%/ $2 MI//(% M%N: 2ach producer should select middlemen that will pro/ide% those marketing ser/ices that the producer either is unable to pro/ide or can:t economically perform

*3 '1'I('$I(I&2 OF /%)I %/ MI//(%M%N:

The middlemen preferred% by producer may not be a/ailable they may be carrying competiti/e product and may want to add another line"

.3'&&I&#/% PO(ICI%):

OF

MI//(%M%N

&O4' /)

P O/#C% )

,ometimes manufacturer:s choice of channels one not acceptable to certain% type of middle men some retailers or wholesalers"

D CO"PANY CONSIDE!ATION<
#efore choosing a distribution channel for a product% a company should consider rele/ant factors own situation"

". /%)I % FO C,'NN%( CON& O(:

,ome producers establish short channels simply because they want control the distribution of their products% e/en through the cast of the more direct channel may be higher than that of an indirect channel" #y controlling the channel% producers can achie/e more aggressi/e promotion and can better control both the freshness of merchandise stacks and the retail prices of their products"

*. )% 1IC% P O1I/%/ $2 )%((% :

,ome producers base channel decisions in part on their ability to carry out the distribution functions demanded by middle men" &or instance% often a retail chain will not stock a gi/en product unless it is resold through hea/y producer ad/ertising"

.. '$I(I&2 OF M'N'+%M%N&:
'hannel decisions are affected by the marketing e4perience and ability of the firm:s management many companies lacking marketing know how prefers to turn the distribution job o/er a middle men"

5. FIN'NCI'( %)O# )%):

$ business with adequate finance can establish it:s own sales force% grant credit% or warehouse it:s own products" &inancially weak firms would ha/e to use middle men who could pro/ide these ser/ices"

CONF#ICTS OF C0ANNE#S OF DIST!I)UTION

(t is important to identify the difficulties the different courses of channel conflicts some are to resol/e% others are more difficult" $ major course is goal in compatibility% for e4ample% the manufacturer may want to achie/e rapid market penetration through a low price policy" The dealers% in contact% may prefer to work with high margins and purse short Mrun profitability" ,ometimes conflicts arises from unclear roles and rights by adding new channels% a company faces the possibility of channel conflict" The following three channel conflicts" K6 'onflict between the nacture account managers and field sales forces" B6 'onflicts between the field sales forces and the dealmakers" D6 'onflicts between the field sales force and the dealers"

C0ANNE# "ANGE"ENT
2ffecti/e channels management calls for selecting intermediaries and training and moti/ating them" The goal is to build along term partnership that will be profitable for all channel members% indi/idual members must be periodically e/aluated against pre; established standards% and channel agreements may need to be modified when market conditions change"

1A!IOUS TYPES OF C0ANNE#S OF DIST!I)UTION<

$G2.T, #7 -27,

D2$327, D(,T7(#1T 7,

8 ##27, 72,(D2.T #1027

WH 32,$327, ' !!(,,( . H 1,2,

72T$(327, ' .,1!27,

(.D1,T7($3 ,T 72"

P0YSICA# DIST!I)UTION
T7$.,P 7T ,T 7$G2 W$72H 1,(.G

T!ANSPO!T
The term transport plays an important role in the de/elopment of trade and industry" (mpro/ed means of transportation ha/e increased the trade by leaps and bands" Transportation is necessary function of marketing because it transports goods from the place of manufacture to the place of consumption" Transport is the only physical mean by goods is mo/ed from their place of their consumption" Transport plays an important role distribution of goods 5 channels of distribution"

FUNCTIONS OF T!ANSPO!TATION<
Transportation helps the growth of industries% whose products require quick marketing" (t increase demand for goods" (t creates place utility" 'reating time utility also" Transportation e4pert:s considerable influence upon the stabili9ation of prices" (t ensures continues flow of commodities" (t enables the consumers to enjoy the benefits of menu goods not produced locally" Transport increases the mobility to labour and capital"

STORAGE
1nder modern conditions storage is a major marketing function" (t in/ol/es the utili9ation of substantial manpower and capital recourses and is concern to all segments of our economic system" 3ike transportation storage is also major area for marketing decisions" Proper strange contributes a real asset to the product" ,torage is a function which helps in preser/ing goods one until they are needed some other place" Transportation and storages are functions% which are complementary and esteemed" The two functions are difficult to separate without storing% transportations is impossible and strong in made possible only by transportation" That:s way these two physical distributions of goods is not possible without the aid of these two functions"

(f transport and ad/ertising are designed to wider the market then storage must be taken for Deeping the market"

=A!E 0OUSING

The function of storage is performed through housing or string the product properly" The place where the goods are stored is known as a warehouse" Warehouse is a building or room for storing goods" Thus storage is one of the physical distribution functions of marketing and a warehouse is the tool with which their functions are performed" Warehousing embraces storage and helps other marketing"

&unctions such as assembling% grading and transportation" (n common parlance warehouse means the GODO=N.

;INDS OF =A!E0OUSING<
K6 (n plant warehousing B6 &ield warehousing D6 n the basis of ownership i6 Pri/ate warehouses ii6 Public warehouses iii6 'ooperati/e warehouses E6 ,pecially warehouses"

C0APTE!91
ANA#YSIS AND INTE!P!ETATION

K" $wareness about $mmireddy oils"

Table8 ,".o" 7esponse 7espondents in .umbers

K" B"

0es .o Total

KCC C KCC

Table5

I-terpretatio-<
$s $mmireddy oils are famous in the local market all the dealers well known about the company"

B" Dealers of $mmireddy oils ltdS

s"no K" B" D" E" Table 8 Table 5

7esponse K;D years D;L years L;KC years $bo/e KC years Total

7espondents in .umbers DE IB C E KCC

I-terpretatio-<
&rom the sur/ey results obtained we can obser/e that DE dealers dealing with ammireddy oils from K;D years and IB dealers dealing with ammireddy oils from D;L years and E dealers dealing with ammireddy oils dealing with more than KC years out of the KCC sample we had taken"

D" 3e/el of satisfaction with the quality of $mmireddy oils compare with the other competiti/e brands"

,".o" K" B" Table 8 Table 5

7esponse 0es .o Total

7espondents .umbers KCC C KCC

in

I-terpretatio-<
(n this question KCCJ dealers are satisfied with the quality of the ammireddy oils compare with the other competiti/e brands"

E" 3e/el of satisfaction with all ranges Ain si9e 5 quality6 of $mmireddy oils"

Table 8
,".o" K" B" 7esponse 0es .o Total 7espondents in .umbers KCC C KCC

Table 5

I-terpretatio-<
(n this question KCCJ dealers are satisfied with all ranges Ain si9e 5 quality6 of ammireddy oils"

L" 3e/el of satisfaction with the transportation of $mmireddy oils"

Table 8
,".o" K" B" 7esponse 0es .o Total
Table 5

7espondents in .umbers KCC C KCC

I-terpretatio-<
(n this question KCCJ dealers are satisfied with Transportation of ammireddy oils" #ut sometimes the transportation is being late to agency areas"

I" The company responds immediately if any problem arises

Table 8 ,".o" K" B" 7esponse 0es .o Total 7espondents in .umbers KCC C KCC

Table 5

I-terpretatio-<
(n this question KCCJ dealer agrees that ammireddy oils will respond immediately if any problem arises"

F" Preference of $mmireddy oils"

Table 8 ,".o" K" B" D" E" 7esponse ?uality Price ,er/ice #rand image Total 7espondents in .umbers DG IB C C KCC

Table 5

I-terpretatio-<
!a4imum number of dealers prefers ammireddy oils due to price and the ne4t place goes to the quality gi/en by the ammireddy oils

G6 7ank the major sale of oil throughSSSS

Table 8
,".o" K" B" D" Table 5 7esponse Dealers Different companies 'ustomers Total 7espondents in .umbers KCC soap C C KCC

I-terpretatio-<
$s per the sur/ey made ( obser/ed that the company made all its sales through dealers only"

H" ,uitable to influence the customer in the means of impro/ing the customers in the means of impro/ing sales areS"

Table 8

,".o" K" B" D"

7esponse 2;media P;media Hording media Total

7espondents in .umbers KL L GC KCC

Table B

I-terpretatio-<
GCJ of the dealers suggest hording media% LJ of the dealers suggest P;media and KLJ of the dealers suggest 2;media to impro/e the influence on customer 5 to impro/e sales"

KC" The company is conduct any meets for impro/ing the sales

Table 8

,".o" K" B" Total

7esponse 'ustomer meets Dealer meets

7espondents in .umbers C KCC KCC

Table 5

I-terpretatio-<
To impro/e the sales KCCJ of the company is conducting dealer:s meets" The company may be conducting the e/ents for their dealers"

KK" Discounts gi/en by the company on your purchaseSS

Table 8 ,".o" K" B" Total 7esponse 0es .o 7espondents in .umbers GG KB KCC

Table 5

I-terpretatio-<
GGJ agreed that there is a discount is gi/e by the company on their purchases and KBJ dealer:s doesn:t agree"

KB" The /arious payments modes offered by the companySS

Table 8

,".o" K" B" D" Total Table 5

7esponse .et cash 'redit 'heque<DD

7espondents in .umbers H KE FF KCC

I-terpretatio-<
The 'ompany offer HJ cash payment% K EJ credit payment and FF J cheques <DD modes" The company may be pro/iding the modes of payment"

KD" 7ate the following parameters

Table 8

particulars ?uality ?uantity Transportation Prices ,ales consistency Total Table B

+ery bad

#ad

Good EB IG GC IG KCC KCC

+ery good LG DB KI KE

e4cellent

E KG

I-terpretatio-<
The dealer:s rate ammireddy oils as good basing on the parameters quality% quantity% transportation% prices and sales consistency" KE" o/er all opinion about $mmireddy oilsS""

Table 8

," .o" K" B" D" E" L" Total

7esponse 24cellent +ery good Good $/erage #ad

7espondents in .umbers C KG IG KE C KCC

Table 5

I-terpretatio-<
The o/erall opinion of the dealers about ammireddy oils ltd is KGJ /ery good% IGJ good% KEJ a/erage"

C0APTE!91I FINDINGS, SUGGESTIONS, SU""A!Y AND CONC#USION

FINDINGS

$ 3 is supplying the quality oil to the dealers with reasonable prices" FCJ of the dealers are benefitted with the transportation and a/ailability of the product within the time and DCJ of the dealers are not benefitted $ 3 dealers are mainly targeting the household purpose which is good for health" $ 3 is more reputation in the local areas" The company:s outlet pro/ides fresh oil directly to the customers"

SUGGESTIONS
Due to highly competiti/e market any company has to be efficient and effecti/e to sustain its market share" The following suggestions were made from the analysis of the data

to impro/e performance" #etter transportation arrangements should be made a/ailable for timely supply of oils to the dealers by minimi9ing the waste of time in reallocating the times schedules of the dri/ers to the rural areas" (n future company may face the problems of competitors keeping this mind the management should take sufficient measures in ad/ertisement less profit to the cost of production and sell the products by this company will pre/ent entering of new competitors in the market" !onthly feedback must be taken from dealers to ha/e better relation with the company" 'hanging to Lliter packing may a inno/ati/e technique if tried by the company% because in course of the study respondents preferred such a mo/e from the company" 'on/entional style of packing bulk should be changed to BLliters packs" it will more easy to the local transportation" The company must make marketing by opening branch office to increase sales figure and add more profits to the company" !ost of the dealers are not happy with the margins pro/ide so the company should increase the margins and relating them to the /olume of business in order to increase dealers efficiency"

SUMMARY
&irst module deals with the introduction of the subject of the study" (t gi/es need for the study% objecti/es of the study% methodology used in the study and limitations of the study" (t also e4plains the channels of distribution"

,econd module deals with the scenario of oil industries in (ndia" (t also tells about the growth of oil industry in (ndia" Third module deals with the company profile" (t tells about the history of the organisation" (t also tells about the /arious departments in the organisation" &ourth module deals with the theoretical frame work" (t tells about the significance of the topic% scope of the topic" (t deals with the channels of distribution &ifth module deals with the practical study Adata analysis and interpretation6" (t includes a e4planation of the topic with the reference to the organisation and applying relationship with the concepts and practical study" (t includes /arious graphs and charts representing /arious area of discussion which are studied practically" ,i4th module includes findings and /arious suggestions to the company" This includes summary and conclusion"

CONCLUSION
With the pace of modernisation% there is an urgent need to go ahead with the de/elopment of appropriate technology for stabili9ation of oil industry" The end of this century% rice bran oil production and the potential oil production increase drastically and hence to e4ploit the huge potential the right perspecti/e and a commitment towards the inherent agriculture layer products is needed"

1sing this study% ( can conclude that the sales of the company based on past records% are healthy and increasing coming few years"

 (t is fact that the prices of oil will be changed o/er the year hence forecast should be made in qualitati/e terms rather than monetary to gi/e more accurate data" The officer and staff of the marketing department pro/ided a blend of professionali9ation and e4perience" (n $ 3 the managerial functions are performed by the managers regardless of their position in the managerial hierarch at the organisation"

)I)#IOG!AP0Y
!$7-2T(.G !$.$G2!2.T $uthor: Philip kotler &1.D$!2.T$3, & !$7-2T(.G $uthor: William j" ,tanton

$..1$3 72P 7T, & $ 3"

8 17.$3, o #usiness (ndia o 2conomics times" W2#,(T2: www" Distribution channels" in

?12,T( ..$(72 .ame of the dealer: $ddress:

Ph" .o*

K" Do you ha/e any awareness about $mmireddy oils@ a6 0es b6 .o B" &rom how many years ha/e you been dealing with $mmireddy oils ltd@ $6 K;D b6 D;L c6 L;KC d6 abo/e KC years D" $re you satisfied with the quality of $mmireddy oils compare with the other competiti/e brands@ a6 0es b6 .o (f .o: E" $re you satisfied with all ranges Ain si9e 5 quality6 of $mmireddy oils@ a6 0es b6 .o L" $re you satisfy with the transportation of $mmireddy oils@ a6 0es b6 .o I" (f any problem will arise does the company respond immediately@ a6 0es b6 .o F" Why you are preference $mmireddy oils@ a6 ?uality b6 price c6 ser/ice d6 brand image G" 7ank the major sale of oil throughSSSS a6 Dealers b6 different soap companies

H" Which one is suitable to influence the customer in the means of impro/ing the customers in the means of impro/ing sales@ $6 2;media b6 P;media c6 hording me KC" $re you conduct any meets for impro/ing the sales@ a6 'ustomer meets b6 dealer meets KK" (s there any discounts gi/en by the company on your purchase@ a6 0es b6 .o

KB" What are the /arious payments modes offered by the company@ a6 .et cash b6 credit c6 cheque KD" Tick the following

particulars ?uality ?uantity Transportation Prices ,ales consistency

+ery bad

#ad

Good

+ery good

e4cellent

KE" o/er all opinion about $mmireddy oils@ a6 24cellent b6 /ery good c6 good d6 a/erage

e6 bad