Surya Nepal Report

CHAPTER 1
INTRODUCTION
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CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION ABOUT THE INTERNSHIP
An internship is a platform which provides an opportunity to observe, learn, practice and

implement the theoretical knowledge one has gain through continuous classroom lectures in real
business situation and it also prepare, shape students for its future career. The internship is done
as a partial fulfillment of requirements of the Master in Business Administration (MBA) under
VTU University. The internship is as a part of the course requirement.
Internship is considered as the practical implementation of the theoretical education that
provides an opportunity to implement the skills learned in college in a real business set up. It
provides opportunities to gain work experience that cannot be achieved just with the theoretical
knowledge which aids in shaping the professional career for beginners like university students.
During internship, the works done and tasks performed are supervised by the faculty members as
well as by the company representatives.
Internship mechanism is being considered as connecting platform between college/university to
labor market. Internship experiences are considered in the hiring process, and often interns are
looked as the best potential candidates for employment in organizations.
1.2 TOPIC CHOSEN FOR STUDY
The study has been entitled as A study on Trade Support Material at Trade level in Kathmandu
Valley wherein an extensive study has been conducted on influence of TSM in product
positioning. TSM is not only about promoting the product to consumer end, but it is equally
important for retailers to ponder their interest also. On the foundation of this research, ambience
is the most important variable considered from all the analysis. Ambience highly stimulates
retails to practice TSM for their retail shop. TSM should be design in a way that could escalate
the store image. Since the perceived usefulness is also one of the most important variables,
manufacturer should design TSM in such a way that it could derive their benefits.
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1.3 NEED FOR THE STUDY
This project work is an internship task of MBA program. MBA being a professional program
embraces all the current happening around the world in the field of management. This project
work is a practical work based on branding of product through TSM. Since the internship is
directed towards the development of professional excellence among the students of MBA
through practical knowledge, this project is a practical study of TSM in branding that is used in
Departmental store, Mart and Local shops using the point of sale material. In this we look after
how the products are being displayed and what kind of material are used as point of sale
material. It also helps to Identify where we are in terms of positioning and branding which helps
to make further plan and policies in the field of marketing for the company. Similarly, we are
looking after Effectiveness of point of sale material in buying behavior of consumer.
1.4 OBJECTIVES OF STUDY
The main objective of A study on Trade Support Material at Trade level in Kathmandu Valley
and trace out where Surya Nepal stands in off trade branding and also tries to find out the areas
of improvement.
Primary objective
To find out how Surya Nepals products are using the trade support materials to create
product positioning and branding the product.
Secondary Objectives
To identify the perception of traders and retailers towards TSMs by identifying variables.
To study what new support material are using for trade support of cigarette.
To measure the effectiveness of TSM used by SNPL Cigarette.
To recommend TSM for it implement to improve the product promotion & brand of
cigarette.
To identify the significant relationship between the different variables i.e. reward, free
space area, ambience, perceived usefulness, product availability and TSMs.
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1.5 Scope of the Study
The scope of the research focuses on the following content:

Demographics of retailers and traders of Kathmandu Valley.
TSM usage in the retail shop and store.
Adaption of TSM among the traders and retailers.
Variables for retailers to TSM practice at their retails shop.
1.6 Methodology
A systematic study needs to follow a proper methodology to achieve pre-determined objectives.
1.6.1 Research Type

The study was based on Descriptive Research. In this research it is tried to find out the specific
information for Surya Nepal Private Limited. The focus was on behavior of traders towards
TSM in Kathmandu Valley. Through this research, it was solely focused to solve the issues of
Surya Nepal which can be useful for the company itself.
1.6.2 Universe
All the retailers and traders of Surya Nepal across the Nepal as universe for this research study.
1.6.3 Study Location

This study was conducted in Kathmandu valley especially in Kathmandu district and Lalitpur
district. The reason to select location as Kathmandu was because the most important market for
Surya Nepal for their upcoming products and most of the consumptions of the product happens
here. The samples were selected from some specific location in this area.
1.6.4 Sampling Technique

The population for the study was the retailers and traders. The location was selected based on
non-probability convenience sampling. Furthermore in next step convenience sampling have
taken 100 samples from the population. .The convenience sampling method was followed for
collecting the data for the study because sample would consist of different shop category, daily
sales, frequency of shop open, and their selling behavior.
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1.6.5 Data Collection Method
The nature of data is quantitative and the mode of collection is data questionnaire. The primary
data is obtained from the respondents via questionnaire which contains 35 different questions.
For successful completion of the data collection process, the questionnaire was administered
personally by visiting each location with retail shops, cold stores and kiosk stores. Personally
administered questionnaire process helped to eradicate the confusion, queries and doubt of
respondent on the spot while being within the time frame. Furthermore response can be accurate
and reliable because in personally administered questionnaire they were in the strict surveillance
of the person who is administering questionnaire. Yes/No, multiple choices rank, five point
scale, variety of questions was contained in the questionnaire to collect the view of respondents
on the topic under study.
1.6.6 Data Entry, Tabulation and Analysis

The responses obtained from the respondents is entered in SPSS and Excel and organized so that
necessary analysis could be made. Since the questionnaire obtained lots of questions which
included multiple responses, the responses was dealt by as per proper mechanism to get the
findings right.
All tabulations and charts were derived using the SPSS tool. For preliminary statistical analysis,
frequency distributions, descriptive statistics for multiple responses were used. The method of
data analysis for different data is presented below:
Descriptive statistics (frequency, percentage, mean): To describe general characteristics
of demography of the retailers and traders of Kathmandu Valley.
Linear regression was employed to test hypotheses regarding the relationship
between independent and dependent variables.
The criteria to measure the variables were defined by using five point Likerts scale.
The result of the data analysis regarding the variable of five point Likerts scale is defined using
following classification:
Strongly Agree = 5
Agree = 4
Neutral = 3
Disagree = 2
Strongly Disagree = 1
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1.7 LITERATURE REVIEW
Trade Support Material (TSM) is a terminology used by manufacturers. In marketing term, it is

called promotional material like Point of Purchase. There are different variables and attributes
which influence retailers and traders to practice TSM. We got few variables from different
literature review and few from our small pilot testing where we interviewed 12 retailers to know
their perception toward TSM.
Etzel, Walker, & Stanton, 2006: Demographics characteristics are immensely considered by
marketers as they are found to be profoundly significant is defining purchase decision. The
important demographic characters such as race, age, religion, gender, occupation, educational
level, marital status are of major interest for marketers. The consumer needs, usage rates, and
brand preference are often found to be associated with the demographic personality of the
consumers. But in the research, the demographic segmentation is very limited since the
demographic segmentations are the retailer and traders. Age, gender, education or religion has
not such effect in the research. But sales and income is indeed an important variable in this
research.
According to retail shop ability in one of its research The impact of store atmosphere and store
layout on consumer buying patterns which is printed on page no. 68-72, in this modern world
retailer are very much aware of the fact that store atmosphere and store layout to a good extent
impact the purchasing decision of consumers so they are conscious toward use of color mix,
appropriate music, uniqueness of retailer, presentation of product at retail outlets.
Yarahmadi, 2011: in one of his study found out that visual display, designing of outlets/store
and ambience all the three attributes have equal weightage in terms of its impact on customers
purchasing behavior and purchasing decision. One of the terms to create the good ambience is
the atmospheric engagement effect (enjoyment and attractiveness) conveyed by the POP
materials.
Holly Bastow-Shoop, 1991: said that the purpose of ambience of the store is for development of
desire among the traders, showing the consumer what is available at store, attracting and
encouraging the purchasing from customers through planned buying and impulse. According to
him the three major objectives of such outlets/stores should be to motivate the
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consumers/customers to spend more money by purchasing goods at such store, to showcase the
image of the stores to general people to attract them and make a good mindset about store and
last one is to minimize the expenses of store.
Surya Nepal believes that reward and extra perk to use TSM motivate them to practice and use
TSM. Whenever there is any new product is been launched in market, few manufacturers follow
these variables. From one of the interviewer (retailer), it was found that CG Group is offering
extra reward to promote their Nepal Ice. They are heavily promoting this product in Kathmandu
market and they offer good price to put their big poster and banners at the retail shop. This is the
variable which was uncovered from pilot testing from retailers and traders.
Mousumi Majumdar, 2012: found out from her study that Space area is one of the important
aspects while considering TSM at the retails and store. The higher the space area at the retails
and store, higher the acceptability level by the traders and retailers. Dummy packs, display
packs, display stands, banners, posters etc. are part of the POP display at any store and they
acquire some space area in the retails. From retailers perspective, it is very important to have
that space area at their retail shop to access POP materials. She also pointed out the fact that in
many cases especially in case of small retail, the POP displays material are provided by
manufacturer itself to retailer but maintenance and use of those POP displays are up to the
retailers.
Buchanan, 2013: according to Scott Buchanan, in most of the cases retailers allow vendors or
manufacturers in its store by analyzing the specification of store and if only the vendor meets
those specification and fit into that. So according to him POP displays are very much useful to
those stores which has limited floor space as these POP displays tend to utilize the wasted space
of store mainly around the counters of the store. Usually all the stores always limit the amount of
space that they make available to vendors for POP displays purpose.
Ensuring good availability of a product is an industry-wide is the most important aspect for both
retailers and manufacturers. TSM acts as a surrogate salesperson. It has been found that a high
level of brand awareness is one of the main factors to translate into sales. TSM is the strong
medium to aware the customer about the product availability from the retails and stores. Every
now then, new product is launched in the market. Especially in Nepal, where with the product
launch, a strong distribution is very important to reach out the product in every corner in the
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market. With the use of TSM, the visibility of the product is high in the retails and stores which
ultimately increase the brand awareness.
Perceived usefulness is another variable what we discovered from small pilot testing. While
contemplating different TSMs, retailers also consider their own benefits. For instance, TSM
display could also be used to place the product as per their desire. They also feel that using
different TSM increase the reputation of their retail stores.
1.7.1 CONCEPTUAL FRAMEWORK:

Based on the literature review and objectives of the study, I did small pilot testing from 10
retailers and traders and I came into conclusion for following conceptual framework. Profit
(reward), free space area, ambience, level of relationship with the manufacturers, perceived
usefulness and product availability are the independent variables for traders and retailers to use
TSM. The conceptual sketch is presented in figure:
Profit (Reward)
Free Space Area
Ambience TSM Supports Sales
Perceived
Usefulness
Product
Availability
Fig 1 Conceptual Framework
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1.8 HYPOTHESIS
Hypothesis 1: There is significant relationship between rewards provided to retailers and

TSM.
Hypothesis 2: There is a significant relationship between free space area of the retails and
TSM.
Hypothesis 3: There is a significant relationship between ambience of the retails and TSM.
Hypothesis 4: There is a significant relationship between perceived usefulness of their retailers

and TSM.
Hypothesis 5: There is a significant relationship between product availability of their product in

the retail and TSM.
Hypothesis 6: There is a significant relationship between the use of TSM and sales support.
1.9 LIMITATIONS OF THE STUDY
The major limitations of the research project are mentioned below:
No previous research or study at trade level.

This report has been prepared by using the limited information due to the limited time at
Surya Nepal.
The research study is limited in Kathmandu Valley and the data collection did not spread
to the different corner of Kathmandu Valley due to limited sample size thus there can be
a sense of biasness in the result.
Its based on the personal understanding of the internee regarding the companys
marketing tools and techniques during the internship period.
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CHAPTER 2
COMPANY PROFILE AND
INDUSTRY PROFILE
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CHAPTER II
INDUSTRY PROFILE
2.1 Introduction
In terms of purchasing power and increasing consumer spending, India, with a population of
over one billion, is one of the largest economies in the world next to China. The Indian FMCG
industry accounts for the fourth largest sector in India with an approximation market size of 2
trillion. The FMCG sector in India has shown growth rate of an average of 11 percent a year in
last decade and amalgamate annual growth rate of 17.3 percent in last five years. In every
country the FMCG sector comprises strong presence of global business players, organized and
unorganized players where the competition is always extreme. India has competitive advantage
over other country as the FMCG sector here has well established distribution network, cheaper
labor /human resource cost and low operation cost of key raw materials which is present across
the entire value chain. In Nepal, the fast-moving consumer goods (FMCG) industry represents
around 2.5 percent of the countrys total GDP. The FMCG sector, being fourth largest sector of
Nepal Economy, is an important contributor to Nepals GDP. The products listed under FMCG
category are supposed to be for frequent usage/consumption and generally it provides high
return. The highly fragmented and volume driven Nepali FMCG sector is characterized by low
margins. As similar to India, in FMCG sector there is strong presence of MNC, it has a well-
established distribution network and highly competitive organized and unorganized players.
Brand name has a greater impact in FMCG sector so there is always high advertising cost,
packaging cost, distribution and marketing cost for FMCG player. Costs of raw material used are
one of the dependent factors for the pricing of final product. Although being a developing
country and with small population of around 30 million, in Nepal there is huge market for
FMCG products and this sector has showed a remarkable growth. In comparison with the growth
rate of overall economy of Nepal which is 3-4 percent, the growth rate of FMCG sector in the
country is above 20 percent.
As there are fewer manufacturers in Nepal, the FMCG sector in Nepal is totally based on the
import and Nepal has become a hub for international FMCG players. Due to its growth and
potential this sector has become one of the most important business sectors for international
players in Nepal. It becomes very much essentials for the manufacture and retailer to find out the
trends in market and accordingly make their strategy to capitalize on the product which has
highest potential.
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Due to smaller market size of Nepal, it was estimated that only 1-2 percent of total Indian
FMCG companies turnover comes from Nepal. Dabur, Patanjali, Hindustan Unilivers, Parle are
some large international players in FMCG sectors of Nepal. Although these companies generate
huge revenue from Nepali market only few have manufacturing plant in Nepal. Chaudhary
Group is the biggest domestic player in FMCG sector of Nepal and has wide varieties of FMCG
products which also exports goods to many other countries and has plants in other countries.
Market size: According to a popular magazine research the market size of FMCG sector of
Nepal could reach $40 billion by 2025. In 2015 growth rate of this sector was 20-25 percent of
the countrys GDP. The trend of growth for FMCG market will remain positive over few
decades and market environment would be more favorable for FMCG sector in upcoming days.
The market size of total organized FMCG market (including essential goods and beverage) in
Nepal is of around Rs. 1,500 crore.
2.2 History
The Tobacco Industry in Nepal
In 1948 a small semi- mechanized factory was established at Birgunj, a town which is known as
the most revenue generating city near the Indian border, which manufacturing capacity is limited
to 300 million sticks per year. Due to its limited capacity and lack of expertise it had faced a
fierce competition from the tobacco manufacturer from across the border. In April 1959, the
government of the Soviet Union and the government of Nepal signed a protocol to establish a
modern factory for tobacco manufacturing in Janakpur. In January 1965 the king of Nepal
formally inaugurated the manufacturing plant which total capacity according to Devkota 1968
report was 2,000 million of stick a year. The capacity of this factory was supposed to meet the
total annual import requirement of cigarettes which in 1960/1961 recorded was 1,038 million
sticks according to customs statistics. The capacity of factory was more than the customs
statistics because a large amount of sticks was supposed to be imported illegally from India due
to open border over 600 miles.
Due to its increase in demand 38 more tobacco product producing companies were established
by 1996/1997 which mainly produced cigarettes and bidi. But most of these companies are
smaller in size and production capacity and almost unorganized. At that time total five were
recorded as well organized cigarette-producing factories. Janakpur Cigarette Factory was the one
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and only public sector Tobacco Company at that time. Seti Cigarette Factory, Surya Tobacco
Company Pvt. Ltd., Nepal Tobacco Pvt. Ltd. and Perfect Blended Pvt. Ltd. are the other four
private organized players. Seti Cigarette despite being registered as factory it only functions as
dealer and importer of foreign cigarettes and it never produces cigarettes on its own in Nepal.
All these private factories were established after 1980.
On February 5, 2007 Nepal joined WHO framework due to which smoking was prohibited in
most of the workplaces and public places as well on public transport. Several regulatory
frameworks were made according to WHO framework in Nepal and the law at airport, prisons
and hotels are somehow liberalized. This framework also prohibited the advertising and
sponsorship of tobacco product to a large extent. The law of compulsory health warning through
the text and pictures on the packaging of tobacco products are made and also the misleading
packaging, labeling including terms such as less tar and light and other signs, are completely
prohibited.
In 2010 the Tobacco product (control and Regulation) Act modified the provision, rule and
regulation for tobacco free area, its advertisement, sponsoring, packaging, labeling under which
three directives and one regulation have been issued. The Government of Nepal has made
provision for several anti-tobacco measures such as compulsory printing of health warnings on
cigarette packages. The government of Nepal also banned the advertisement of tobacco product
on electronic media like television, radio etc.
2.3 Overview
Organized manufacturing in the Indian FMCG sector started early in the 20th century. Most of
the FMCG companies are multinationals which started mainly as trading companies. The growth
of Indian market as an inevitable result of globalization encouraged the MNCs to setup
manufacturing facilities in India and this sector began to flourish in India. It is no longer a
seller's market but a buyer's market where the consumer has a wide range of choice, which
encourages FMCG companies to strike it out for their market share. The Nepali FMCG market
has huge impact from Indian market and it is believed that the organized manufacturing in Nepal
FMCG industry started parallel with the Indian FMCG industry. Due to cultural similarities and
open border between Nepal and India, the any change in FMCG sector in India spread across the
border of Nepal and finally to whole Nepal. The Nepali FMCG sector is dependent on imports
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from Indian fast moving consumer goods manufacturing company. The Indian companies and
even foreign company merely set up manufacturing plant in Nepal rather they go for strategic
alliance, Joint venture and dealership to promote their business in Nepal. The Coca-Cola,
PepsiCo, Nestle, Parle group, Patanjali are some major examples of foreign players in Nepali
FMCG sector. The Choudhary group, Khetan group are major domestic players and huge market
share is captured by them. Choudhary group may be regarded as market leader in FMCG sector
of Nepal.
2.4 COMPANY PROFILE
In 1986, an Indo-Nepal-UK joint venture, Surya Nepal Private Limited (SNPL) had started its
operations in Nepal. Nowadays Surya Nepal Private Limited which is a subsidiary of ITC
limited is the largest private organization in Nepal. Their day to day operations include
manufacturing and marketing of readymade garments and tobacco products like cigarettes in
Nepal and also exports of ready-made garments. Its turnover is around $175 million. Surya
Nepal spread its business operations into garment sector with the purpose of diversification. In
October 2004, they started manufacturing of garments under the brand name of John Players
label, for ITC Limited, India. They launched the brand in Nepal to fulfill the need of todays
youth who seek quality and style in apparels within a reasonable price. The vision of Surya
Nepal Private Ltd. was establishment "Growth through Quality and Excellent".
Previous Name : Surya Tobacco Company
Promoters : British American Tobacco (2 percent holding)
: ITC limited (59 percent holding)
: Nepali Entrepreneur (39 percent holding)
Manufacturing Plant : Simra, Nepal
Head office : Kathmandu, Nepal
Introductory phase brands : Bijuli, Naulo
Current brand : Surya, Shikhar, Bijuli, Khukuri, Chautari, Pilot
Retailers : around 75000
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Secondary wholesalers : 6000
Whole distributors : 60
Market Share (in terms of value)
Cigarettes industry : 70 percent 75 percent
Premium Segment : 95 percent
High Segment : 82 percent 85 percent
Lower segment : 60 percent
It is most sellable brand in Nepal in tobacco product categories.
Board of Directors:
Chairman Prabhakar SJB Rana

Vice Chairman Anil Seth
Managing Director Sanjiv Puri
Joint Managing Director Nemlal Amatya
Director Anup Singh
Director D.B. Mathema
Director Partha Mitra
Director B. B. Chatterjee
Director Siddahartha S.J.B. Rana
Director A.N Haksar
Vision
To be an internationally benchmarked multi business corporation in Nepal, delighting global and
domestic customers with a proud Made in Nepal label and accounting for 2percent of the
countrys GDP.
To be a partner in Nation-building and create enduring value for all stakeholders.
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Mission
To create sustainable competitive advantage for the buyers by providing a superior
sourcing solution.
To provide a superior smoking experience to all smokers of our brands as well as
consumers of other tobacco products.
Surya Nepal Holds the Following Values

Orientation towards Nation
The top most value at Surya Nepal is to contribute in whole economy of the nation by
generating some economic value through its business activities. They are always
concerned about the culture across the Nepal and they feel responsible for well-being of
nation through different corporate social responsibility activities.
Trusteeship
The managers at Surya Nepal are concerned towards its all the stakeholders and they are
working to create value for stakeholders with sustainable long term strategy.
Excellence
Whatever work they undertake they seek for superiority in that project and they always do
right work and always work to achieve excellence.
Customer centric
Surya Nepal is very much focused towards its customer interests and value creation for
customer, better quality product and satisfaction of customer.
Respect for people

Surya Nepal is very much aware that each individual has some capacity so they always
respect the skills of employee and work towards making a strong team. They always
value the people, respect them and take care of human dignity.
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Innovation
They are focused towards production of better product, better process, and better
services to customers so always seek improvement in existing product and also work
for production on new product which has demand in market.
2.5 Quality Policy

Each and every manufacturing process at Surya Nepal is assured with hallmark quality.
Before launching any product they do lots of research work in terms of market research,
product quality improvement to serve clients need in better way.
At Surya Nepal quality check-up and control is done at every stage starting from the
procurement of rematerialized from supplier to finish product and its storage and retailer
shipping.
Efficient and effective internal process and total customer satisfaction are the two
interacting factors upon which the whole quality policy of Surya Nepal is based on.
Many teams of the experts at R & D are working continuously towards the innovation
of new and better product.
While redesigning the product and process they always keep in mind that improved
product outperform the market and increase their market share in overall.
For improvement in quality of product and service and for better profitability Surya
Nepal is continuously working on redesigning of manufacturing process, operation
process and for that they are focused on research and development.
To guarantee long-term success of company, the companys management feels
obligated to have a quality management system that meets the requirements of high
standards.
To implement the companys policy, the management has defined definite and
measurable quality goals. These goals and the quality policy are constantly being
evaluated and adapted in accordance with market developments.
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Organization Structure of SNPL
Managing
Director
Head of VP Tech. / VP VP Corp. Legal

Fin & IT Projects Marketing Affairs HR Head Managers
Department Department Department Department Department

al Managers al Managers al Managers al Managers al Managers
Fig 2: Organization Chart of SNPL
2.6 Products and Service Profile

Portfolio of business
SNPL's business includes manufacturing of Agarbatti, safety match box and cigarettes which in
total has a turnover of more than $ 175 million in Nepal. SNPL has more than 90 percent of
Nepals cigarette market and its contribution to the national Fund is 3.5 percent of countrys
revenue, it is largest single contributor and top manufacturing company in tax paying. Total
number of permanent employees working in Tobacco division of Simara factory of SNPL
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consists of 47 managerial and 353 non-managerial staffs. It also employees many workers on
contract basis.
2.6.1Cigarette
Its been more than 25 years for Surya Nepal Pvt. Ltd. (SNPL) in cigarettes manufacturing
business. The different products manufactured/produced by them are listed below:
Surya Legend
24 Caret F/F
24 Caret Lights
Surya Luxury King
Surya Lights
Surya Polar Ice
Shikher
Shikher Select
Khukhuri
Pilot
Pilot Menthol
Bijuli
Chautari
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2.6.2 Product Description
Surya Legend Surya Luxury
Surya Legend
According to one of the local wholesaler in Kathmandu valley, price bracket of one packet of
Surya cigarette ranges from 155-160 for wholesaler.
One bundle of Surya cigarette consists of 10 packets. Each packet which previously used to be
available at cost of Rs. 141to retailer, nowadays it cost Rs. 151 per packet.
During the year price of Surya legend cigarettes has gone up by Rs. 100 per bundle.
Nowadays each bundle of Surya legend cigarette costs Rs.1510 which previously cost around
Rs.1410 to retailers. During the year the price of Surya legend has increased due to increase in
its cost of production.
Surya Luxury Kings

Among all other products Surya luxury kings is mostly consumed by the youngsters and people of
premium segment in urban areas. Surya luxury is found in pack of 10 and 20 sticks with price tag of
Rs.200. Nitrosamine, Benzopirin, Tar, Carbon Mono Oxide are the main constituents in it with
Nicotine 1.3mg / 1mg and 75-85 mm filter size.
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Surya Lights Khukhuri
Surya Lights
The later start of Surya Classic, the lead mark of the Company, in a special first of its benevolent
shoulder box group has taken the business sector by storm. Valued at Rs 178 for a bundle of 20
sticks, the mark is positioned as a super-premium elite offer - a smoke that typifies flawlessness,
motivates ardor and summons pride in the finest made in Nepal creation yet - Crafted In Nepal,
Inspiration For The World.
Khukuri
Khukuri is the biggest offering smoke market in Nepal. Positioned as the Sahashi ko ekmatra
Chahana, this mark compasses the length and width of the nation and the devotion of its smoker
base are incredible. This is categorized on the legendary smokers.
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.
Gudang Garam Pilot
Gudang Garam
Mainly targeted to youth for their dynamism, enthusiasm Surya 16 another name of Gudang Garam
is among one of the most sellable and successful brand in premium segment in filter cigarettes
category. It had made an image of premium quality, prestige among the high class people and art of
smoking among art lovers. Gudang Garam each carton consists 10 packets and there is 16 cigarettes
in each packet of Gudang Garam so it is also known as Surya 16.
Consumer Segmentation
Surya Nepal Private Limited has 4-5 umbrella brands under which there is many brands and each of
these brands are for specific group of the people segmented either by geography, demography,
psychographic or behavioral segmentation. SNPL has nicely used and adopted the customer
segmentation to reach maximum number of people and finally to increase profitability by serving
more customers. They seem to have done a nice research about taste, needs and capacity of people in
different area, different gender, different age group and different generations .SNPL categorized in
cigarettes product on following ways:
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1. Segmentation according to Geography
Developed sectors:- Classic Surya, Surya Lights, & Shikhar
Undeveloped sectors:- Khukuri, Bijuli & Pilot
2. Segmentation based on Demography

They have specific brand for each group i.e. mature, teenagers and old people.
They have product for each gender i.e. male and female.
For old age people:- Pilot, Bijuli and Chautari
For teenagers of age above 20 to 25 : Shikhar
For high class people( premium segment) : Surya Classic and Surya luxury king
For general people : Khukuri
3. Segmentation on basis of psychograph

They have segmented on the basis of the reasons of uses i.e. during frustration or
during anxiety.
For heavy( Legendary) smokers : Khukuri
For light smokers : Shikhar
2.6.3 Garment
The Various Garments Products of SNPL are:
John Players
Keeping in mind the youth and fashion lover Surya Nepal has entered into mens clothing segment
in 2004. The brand mainly targeted to premium class people, John Players is always known for its
contemporary trends. Although having a manufacturing plant at Nepal the most of the revenue of
John Player comes from foreign market and it has become one of the reputed brands in mens
apparel across the globe. This is usually available at its own exclusive branded outlets or in high end
multi brand outlets. It is famous for its quality and comfort among high class people. It has wide
range of products and includes formal wear, casual wear, denim shirts, t-shirts, denim jeans. This
brand is famous for its style and charisma.
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Spring Wood
The successful entry in clothing market with John Players motivates the organization for another
brand so they come up with new brand Spring Wood which is mainly targeted to meet the needs of
price conscious costumers. The made in Nepal brand comes up with 100 percent quality guarantee
which has lower cost in comparison with most of its competitors. Its previous promotion was done
with tagline of Made in Nepal product across Nepal. This brand becomes choice for those who are
fashion conscious but have limited budget.
2.6.4 Safety Matches

Similar to other products the safety matches by SNPL is known for its quality which has served
Nepali people. Although sourced from vendors SNPL has marketed this product in such a way that it
is produced by SNPL itself and it shows the capability of SNPL mainly in brand creation and
distribution. Tir is one of the brands of safety matches from Surya Nepal.
2.6.5 Agarbatti
According to the data published by UNDP Nepal exports 17 billion of incense sticks to over 15
European countries. But the net import of incense sticks is higher compared to export. The official
statistics shows that Rs. 322 million sticks of incense are imported from India. According to some
incense manufacturers, imported incense sticks from India constitute more than 50 percent of the
total incense sold in the country. Therefore Nepalese market has a huge unmet local production
opportunity.
So Surya Nepal entered into the business of Agarbatti with an objective of creating employment to
24
lower class people. Agarbatti are basically same as Dhoop in Nepal. It created Mangaldeep brand
which is known for its fragrance among Nepalese people. Mangaldeep comes with different
fragrance based on flower, woods and herbs. Mangaldeep is highly competitive in terms of price.
Managaldeep with fragrance of temple is most premium offer to the customer which is based on
masala.
2.6.6 Competitors
Competition on Cigarette Brand:
The main competitors are listed below
Gorkha Lahari Pvt. Ltd. :-Bigul, Brown Filter
Janakpur Cigarette Factory:-Lahure, Deurali, Kasturi, and Yak.
CG Exim Nepal Pvt. Ltd. :- Camel,Winston
Jagadamba Group :- Marlboro
Competition on Garment:
Subha Sagun Wool Handicraft Industries
Harati Valley Carpet Traders
Ishan Import and Export
Pashupathi Textile Pvt Ltd.
Sangrilla Textile Industries Pvt Ltd.
Sunoom Pashmin Crafts
Competition on Safety Matches:-

J.K. Soap and Chemical Industries Pvt Ltd.
Subarna Match Pvt.Ltd.
Asia Match Company Pvt Ltd.
25
Competition on Agarbatti:-
Sabitri Agarbatti
Shree Bishnu Devi Agarbatti
Stupha Agarbatti
Birat Dhoop Agarbatti
Tilomata Agarbatti Udyog
Hangman Agarbatti Udyog
2.7 SWOT Analysis
Strengths:
It is market leader in most of the field.
It is among few oldest companies in Nepal so it has strong idea about customers
preferences, choices.
They have a large base of satisfied and brand loyal customer.
They are very good at marketing and brand creation.
They have more technical expertise and experience than its competitors.
It has a large research and development department which merely one of its competitors
in Nepal own.
They are very good at innovation and redesigning of products.
They have their presence in almost all the segments with different brand name.
They have large capital adequacy.
Weaknesses:
They have poor control over its distribution channel.
The organization name has not good reputation among those who do not smoke.
Opportunities:
Opportunity to expand in different sectors like electronic, other FMCG product as Nepal
is highly import based country.
26
They have opportunity to launch new brand and opportunity to enter into womens
apparel.
They have an opportunity to export goods to neighbour country like India as there is
some tax benefit available for Nepali product in India.
Threats:
It always has threat of increasing tax burden in cigarette sector which ultimately decrease
its revenue.
It has threat from WHO framework as this framework keep on changing and Nepal being
in agreement, this framework change has direct impact on its cigarettes business.
Threats of small regional players as these small scale manufacturers are promoted by
Government and due to remittance no. of such players are increasing.
Decrease in customer day by day as the temporary migration for employment in Nepal is
increasing and the main users i.e. farmers are the major temporary migrator to foreign
nations.
2.8 Future Growth and Prospects

Over the last decade, SNPL revenue has grown from about Rs.1050 crore in 2004-05 to over
7000 crore in 2015-16. Despite of consolidation in its export department, SNPL in last year
recorded gross turnover of Rs. 2209 which is the highest ever recorded turnover for the
company. It was completely new record for company, not only this but company has made new
record in almost all the financial parameters in last year.
Its net profit is increased by 25 percent which in monetary terms accounts for Rs. 521 crore. The
dividend payout ratio last year was 40 percent which is all time high in SNPL history as
discussed earlier SNPL has huge undiscovered sector for expansion and diversification.
It has capacity to attain exponential growth by expanding its business to different sector in
upcoming years. Even if it remains in its current business it has a good future growth
opportunity.
27
2.9 Financial Statement
Basis of Accounting
Several judgments are done in discussion with independent actuaries about the retirement cost,
carrying value of assets and liabilities and changes for the year.
Fixed Assets
Straight line method is used by company for depreciation of tangible fixed asset.
Inventories
For inventories it is entered in accounting on the basis of lower value among actual cost and net
realization cost.
28
th
Table 2.1 Balance sheet as on 16 july, 2016
Figure in NRs Figure in Figure in NRs Figure in
Balance sheet of SNPL Pvt. as on 16thjuly INRs as on as on 16thjuly INRs as on
Ltd. 2016 16thjuly 2016 2015 16thjuly 2015
Capital & liabilities
Share Capital and Reserves
(a) Share Capital 2,01,600,00,00 1,26,00,00,000 2,01,60,00,000 1,26,00,00,000
(b) Reserve and Surplus 69,29,87,549 43,31,17,214 39,68,03,659 24,80,02,287
Total 2,70,89,87,549 1,69,31,17,214 2,41,28,03,5659 1,50,80,02,287
Assets:
1.Fixed Assets
a) Gross Block 3,84,86,37,474 2,40,53,98,421 2,99,08,67,216 1,86,92,92,010
b) Less: Accumulated 1,62,70,82,817 1,01,69,26,761 1,38,36,10,520 86,47,56,575
Depreciation
c) Net Block 2,22,15,54,657 1,38,84,71,660 1,60,72,56,696 1,00,45,35,435
d) Capital work in 14,41,22,586 9,00,76,616 36,06,01,827 22,53,76,142
progress 10,98,82,338 6,86,76,461 10,98,82,338 6,86,76,461
2.Investment 1,09,15,022 68,21,889 2,89,86,715 1,81,16,697
3.Deferred Tax Assets
4.Current Assets 2,16,88,04,144 1,35,55,02,590 1,36,57,74,940 85,36,09,337
a) Inventory 9,22,76,414 5,76,72,759 10,15,85,334 6,34,90,834
b) Sundry debtors 1,43,24,218 89,52,636 91,66,48,884 57,29,05,553
c) Cash and Bank 1,89,82,87,023 1,18,64,29,388 60,98,42,066 38,11,51,291
balances
d) Loan and Advance
Total Current Assets 4,17,36,91,799 2,60,85,57,373 2,99,38,51,224 1,87,11,57,015
Less: Current liabilities &
Prov. 73,32,47,775 45,82,79,859 - -
a) Short term Borrowing 85,19,70,328 53,24,81,457 78,13,71,014
b) Liabilities 2,36,59,60,750 1,47,87,25,469 1,90,64,04,127 48,83,56,884
c) Provisions 1,19,15,02,579
Total Current Liabilities 3,95,11,78,853 2,46,94,86,785 2,68,77,75,141 1,67,98,59,463
29
Net Current Assets(C.A-C.L) 22,25,12,946 13,90,70,588 30,60,76,083 19,12,97,552
Miscellaneous Expenses 0 0 0 0
Total 2,70,89,87,549 1,69,31,17,214 2,41,28,03,659 1,50,80,02,287
Table 2.1 Financial Statement of Surya Nepal Pvt.Ltd.
From the above financial report it is clear that the company has increased its assets as compared
to the previous year. The company has purchased more fixed assets and even the current assets
have increased by nearly 40percent and the company has current ratio of 1.06. The liquidity ratio
though seems to be weaker; the company is still able to meet its liabilities.
There is decrease in sundry debtors which implies that the company has provided fewer goods in
credit as compared to previous year.
The share capital has increased this year, which means that the company has issued shares to
raise money. The companys reserve has increased implying that the companys profit has
increased.
.
30
CHAPTER 3
BACKGROUND OF THE STUDY
31
CHAPTER 3
TRADE SUPPORT MATERIALS
3.1 INTRODUCTION
In the current scenario, SNPL is one of the major market leaders in Nepal. One of the major
factors for the success of SNPL is its strong distribution mechanism. It has more than 100000
retailers and 60 wholesale distributors around the country. So the retailers and the wholesalers
are the most important part in their success. SNPL has always given a priority to their
wholesalers and retailers.
With the distribution of the products, it is also important that the traders sell the product in
effectual manner. But selling the products does not just require products. This product also
requires exposure and revelation. And Trade support material is the one playing major role in
doing this activity. In marketing terms, TSM is known as Point of Purchase (POP) material. The
practice of TSM is found from huge departmental store to small Kiosk stores which are
provided by the respective manufacturers.
Every POP materials in the stores have a specific purpose to improve the sales of the
merchandise displayed and to support staff suggestions for add-ons and up-selling.
Planning and organization of TSM is very important, and even more if the store is small
and every square inch of space is used. There are various purposes for the use of TSM from
manufacturers perspectives and traders perspectives as well. From manufacturers
perspective, the persistence of TSM is to promote and advertise the product through
retailers by providing them different tools of TSM such as display stands, posters and
banners. From retailers perspective, the main purpose of using TSM is to support sales and
provide the good site and view of the products and drive them for impulse purchasing.
Beside this, retailers have their own discernment towards TSM.
This research study, basically, is undertaken to get the insight and perception of traders and
retailers towards Trade Supply Materials. The study focuses on different aspects of traders and
retailers to practice TSM provided by manufacturer at the retail shop to design appropriate
implementation plan for further improvement of TSM for the further success of the promotion
and advertisements. This study is done only on small retail shops and store not departmental
stores. Since, in Nepal, there is still a strong trend to shop from small retail shop rather than
32
departmental stores. This is why this study is more focused on small retails shop and store
which we call Kirana store, Cold store and Kiosk store.
3.2 Importance of Trade Support Materials in Business
Trade support material is a marketing material or advertisement tool which is generally placed
next to the merchandise. .TSM is also known as point of purchase or promotional material.
Nowadays it is one of the most important/staple strategies for manufacturers.
Some importance of point of trade support materials (TSMs) are as follows:
1. Support Sales
Trade support material generally provides detail information regarding the
products/services. It also provides detail information about company/brand or it might
contain information of promotional material. TSMs help salesperson to acquire new
customers and finally to increase their business. TSMs help to know about the product
image. It helps to play significant role in retail store. It helps to attract customer by
displaying the product in appropriate order.
2. Escalate the product image

TSMs help to increase the product image; normally TSMs are located at the checkout
area or which is directly seen by the customer. It helps in building reputation of the
company brands. It helps to know about the product category. TSMs help to know
about the product category being sold in stores. Many retailers prefer using TSMs.
3. Better Store Ambiance

Store Ambiance should educate the consumer on what they are looking at and to direct
them at what they would want to locate inside a store. TSMs help to create an image in
order to attract customers. It makes pleasant atmosphere through the various materials
like on shop board, counter top product stacking unit (CTPSU) and shelving. These
materials help to conscious the customer about the product. Customers feel motivated
after the use of TSMs of the product.
33
Fig 3: Counter Top Product Stacking Unit (CTPSU)
4. Influence Consumer
Placement and positioning of TSMs at retail is important to notice easily. It helps to
keep the product in appropriate way, this material is useful to aware customer about the
product in store, TSMs influence consumer for quick purchase of the branded product,
and it makes easy for customer to purchase the branded product. Consumers feel more
motivated after the use of TSMs of the products. This can be achieved by converting
consumers into loyal customers by identifying their needs and wants and providing an
offering that will satisfy the consumers and win their loyalty.
Fig 4: Shelving
34
5. Building Reputation of the Company
TSMs help in building reputation of the Company/Brands; it is useful to aware
customers about the availability of the product in the store. TSMs have the significant
influence on motivation of the retailers. Reputation is usually built from one thing:
happy customers. Depending on the business, it may be the quality of the product, low
prices, or friendly service. But the bottom line is that the reputation is constructed from
exceptional customer experiences. Therefore TSM is playing a significant role in
gaining reputation of the company as well as brands.
6. Product Availability
Product availability is about providing a product, in a saleable condition when and
where the shopper wants it. Ensuring good availability of a product is an industry-wide
is the most important aspect for both retailers and manufacturers. TSM acts as a
surrogate salesperson. It has been found that a high level of brand awareness is one of
the main factors to translate into sales. TSM is the strong medium to aware the
customer about the product availability from the retails and stores. Every now then,
new product is launched in the market. Especially in Nepal, where with the product
launch, a strong distribution is very important to reach out the product in every corner
in the market. With the use of TSM, the visibility of the product is high in the retails
and stores which ultimately increase the brand awareness.
35
Fig 5: In shop Display
Some other importance of TSMs is as follows:

TSMs utilize free space area well.
Retailer experiences the good ambiance while using TSMs at retail shop/store.
Placement and positioning of TSMs at retail is helps in noticing the product
easily.
TSMs are designed in different sizes so even pan pasal and small kirana store
are able to keep high margin of sales.
It helps in effective sales of SNPL Cigarettes.
TSMs help to make the customer conscious about the product.
36
Fig 6: Front Display
37
CHAPTER 4
ANALYSIS AND
INTERPRETATION
38
CHAPTER -4
ANALYSIS AND INTERPRETATION
INTRODUCTION
In this chapter, data collected from the retailers and traders of Kathmandu valley are processed
and presented. The data collected based on the questionnaire are categorized in following ways.
The sample size for this research was 100 respondents of retails outlets of Kathmandu.
Analysis of Surveyed Data
The major findings of the survey are analyzed as follows:
4.1 Shop Category
Outlet Type Frequency Percent (%)
Cold store 25 25
Grocery kirana 25 25
Bakery 14 14
Nanglo 5 5
Pan shop 20 20
Ghu/tky 3 3
Poc/bht 8 8
Total 100 100
Table 4.1 Outlet Type
39
Outlet Types
25
20
15
Outlet Types
10
0
Cold Grocery bakery Nanglo Pan Shop Ghu/tky Poc?bht
Store kirana
Fig 4.1 Outlet Type
Interpretation
The table 4.1 reflects classification of retail outlet which is cold store (25 percent), grocery
kirana (25 percent), bakery (14 percent), Nanglo (5 percent), pan shop (20 percent), ghumti (3
percent) and Bhatti (8 percent).
4.2 Table Showing Brands of Cigarettes that are mostly sold:
Brands of Cigarettes that are mostly sold

Brand Frequency Percent
24 caret lights 5 5
surya luxury king 86 86
surya lights 9 9
Total 100 100
Table 4.2 Brands of cigarettes that are mostly sold
40
Brand of Cigarette that is sold
mostly/Availability/20
90
80
70
60
50 Brand of Cigarette that is sold
mostly/Availability/20
40
30
20
10
0
24 caret lights Surya luxury king Surya Lights
Fig: 4.2 Brand of cigarette that is sold mostly
Interpretation: The survey shows that most of the retailers sell Surya Luxury King. Other
varieties of Surya like 24 carat lights and Surya lights are sold in less number as compared to
Surya Luxury King. People seemed to be more habitual towards the Luxury king compared to
other varieties which are the main reason for such high difference in the sell ratio.
4.3 Daily Sales Turnover
Daily Sales Turnover
Daily Sales Frequency Percent

Less than 3000 74 74
3000-5000 20 20
5000-10000 5 5
Above 10000 1 1
Total 100 100
Table 4.3 Daily Sales Turnovers
41
Daily Sales Turnover
80
70
60
50
40 Daily Sales Turnover
30
20
10
0
Less than3000 3000-5000 5000-10000 above 10000
Fig: 4.3 Daily Sales Turnovers
Interpretation
The daily sales of respondents of various demographic background is represented in the above
table 4.3 and it shows that the major composition of the sales belongs to the shop whose daily
sales are less than Rs.3000, 3000-5000, 5000-10000 and above 10000 out of 100 respondents. 74
percent of the shops daily sales are less than 3000. 20 percent of the shops sales is between
3000 to 5000 and daily sales of Rs. 5000-10000 is about 5 percent and above Rs 10000 daily
sales covers only 1 percent.
4.4 Days that Retail Shops are opened
Days that retail shops are opened

Frequency Percent
Everyday 64 64
Six days a week 34 34
Five days a week 2 2
Total 100 100
Table 4.4 Days that retail shops are opened
42
Days that retail shop open
Everyday
Six Days a week
Five Days a week
Fig: 4.4 Days that retail shop open
Interpretation
The table 4.4 reflects classification of shops according to the number of days they are opened in
a week. Most retailers have their business days classified as following: every day, six days a
week and five days a week. The tabulation of the data clearly shows that the majority of the
shops are opened daily with 64 percent followed by the shop which opens 6 days a week with 34
percent and only 2 percent of the retailers close the shop twice a week.
4.5 Cigarettes Sold in Packet or pieces:
Cigarettes sold in packet or pieces

Packets/Sticks Frequency Percent
Packets 12 12
Sticks 31 31
Both 57 57
Total 100 100
Table 4.5 Cigarettes sold in a packet or pieces
43
Cigarette sold in a packet or a piece
60
50
40
Cigarette sold in a packet or
30 a piece
20
10
0
Packet Stick Both
Fig: 4.5 Cigarette sold in packet or a piece
Interpretation
The table 4.5 is about the variation in frequency for cigaratte selling in packets and pieces. The
table depcits that most of the consmers like to buy in pieces than going for the packets.
4.6 Cigarettes sales per day:

The following table represents the number of cigarettes sold per day:
Cigarettes sold per day

Packets Frequency Percent
less than 5 packets 23 23
5-10 Packets 53 53
more than 20 24 24
Total 100 100
Table 4.6 Cigarettes sold per day
44
Cigarettes sold per day
60
50
40
30 Cigarette sold per day
20
10
0
Less than 5pckts 5-10pckts more than
20pckts
Fig: 4.6 Cigarettes sold per day
Interpretation
The above table classifies the shops according to the amount of cigarettes sold per day. From the
table we can interpret that out of 100, 24 percent of retailers sell more than 20 packets a day, 23
percent sell less than 5 packets whereas most of the sellers are found to be selling 5-10 packets
per day with 53 percent which is about two times than above two.
4.7 Types of TSMs:
TSM materials are provided to the store

Types of TSMs Frequency Percent
CTPSU 55 55
Shelving 24 24
Nanglo Box 5 5
On shop display 5 5
None the above 11 11
Total 100 100
Table 4.7 TSM materials are provided to the store
45
TSM provided to store
60
50
40
30
TSM provided to store
20
10
0
CTPSU Shelving Naglo Box On shop None of
display the above
Fig 4.7: TSM Materials provided to the store
Interpretation
The above table represents different kinds of TSMs provided by manufacturers which are
categorized on CTPSU 55 percent, Shelving 24 percent, Nanglo Box 5 percent, On Shop Display
5 percent, none of the above 11 percent. According to survey they preferred CTPSU materials
mostly because it is placed near the cash counter which is directly seen by the customer and it
helps in selling Cigarettes easily.
46
4.8 TSMs Users:
The following table represents the number of TSMs used by the retailers that are provided by the
manufacturer:
Response of Retailers on use of TSM

provided
TSM Users Frequency Percent
Yes 89 89
No 11 11
Total 100 100
Table 4.8 TSMs users
Response of Retailers on use of

TSM provided
YES
NO
Fig: 4.8 Retailers response on use of TSM
Interpretation
The above table shows that the majority of retailers use TSMs at the retail shop accounting 89
percent and remaining 11 percent do not use TSMs at their retail shop.
47
4.9 What Kind of TSM is useful?
What Kind of TSM is useful

Frequency Percent
That increases the product 58 58
image/display
That increase the store image 12 12
That increases the branding 6 6
One with multiple functions 24 24
Total 100 100
Table 4.9 Retailers priority of TSM on basis of usefulness
What kind of TSM is useful?
60
50
40
30
What kind of TSM is useful?
20
10
0
that increases that increase that increase one with
the product the store the branding multiple
image/display image functions
Fig 4.9: Retailers priority of TSM on basis of usefulness
Interpretation
48
Out of 100 respondents, majority of the retailers (58 percent) expect manufacturer to increase the
product image and display. 12 percent prefer to increase the store image, 6 percent prefer to
increase branding and 24 percent prefer TSM with multiple functions.
4.10 Benefit derived from the TSMs being used:
Respondents were asked about the benefit derived from the TSMs used which is described
through the table given below:
Benefits derived from the use of TSM

Frequency Percent
Fees paid by Company 31 31
Better store ambience 4 4
Higher Sales 27 27
Support sales/Placement of 38 38
Goods
Total 100 100
Table 4.10 Benefits derived from the TSM being used
49
Benefits from TSM
40
35
30
25
20 Benefits from TSM
15
10
0
Fees paid by Better store Higher Sales Support Sales
Company Ambience
Fig: 4.10 Benefits derived from the TSM being used
Interpretation
This table reflects the benefit derived from the TSMs being used. The benefit derived from TSM
is (38 percent) in supporting sales, (31 percent) in fees paid by company, (27 percent) in higher
sales and (4 percent) in better store ambiance. We can conclude from the above data that TSMs
help to support sales effectively. Importance of TSMs has increased as per the increase in daily
sales.
50
4.11 Descriptive Mean Analysis:
The table shows rank on the basis of packaging/shape and design of the product, credit facilities,
Merchandising/TSMs/Advertising support given by the company, friendly behavior of the
company personnel, High Margin/Easy selling products, Reward/Offer given by the company
where 1 is highly preferred rank and 6 is the least preferred rank which is more clear through the
following table:
Descriptive Statistics
N Mean Std. Deviation Rank
Rank SNPL on the basis of 100 4.86 1.064 1
Packaging
credit Facilities
TSM
friendly
High Margin
Reward
Average Mean 3.49
Table 4.11 Descriptive Mean Analysis
Interpretation
This table represents the most important factor of trade between two companies where 1 is
highly preferred and6 is less preferred. On the above table 2.08 is near to 1 so, 2.08 is related
with TSMs which indicate the support sales it helps to increase sales and 2.63 which is near to 1
so this is also most preferred . 3.19, 3.94, 4.28 and 4.86, 4.86 is least preferred which is
concerned about the packaging /shape and design of the product which is less preferred
according to respondents.
51
If we see the standard deviation, we can see that Reward /Offer given by the company has a
higher standard deviation as well i.e. 1.78 while the lowest standard deviation is of the
statement, Packaging /Shape and design of the product.
However, all of the statements above support measure the effectiveness of TSMs used by
SNPLs Cigarette Business.
4.12 Statistical Test Performed:

The table below shows the perception of the retailers regarding the applicability of the TSM in
their store:
Descriptive Statistics
N Mean Std.
Deviation
I believe TSMs help in building reputation of the Company 100 3.96 0.828
/brands
TSMs plays significant role in my store operation 100 3.79 1.113
I believe TSMs help in increasing sales 100 3.97 0.915
I expect reward from the company for using TSMs 100 4.15 0.804
I am satisfied with the reward and profit offered by the 100 3.54 0.892
company
I believe TSMs increases store ambience 100 3.44 0.967
TSMs influences consumer for quick purchase 100 3.33 1.083
TSMs help to know about the product category being sold in 100 3.59 1.129
my stores
I prefer using TSMs 100 4.21 1.113
Table 4.12 Descriptive analysis of all TSMs available in retail outlet
Interpretation:
The aforementioned table shows that how they perceive the applicability of TSMs. The table
shows that most of the retailers outlets prefer using TSMs. 4.21 mean shows extremely high
agreeability towards the product. Many retailers want to reward the expectation offered by
52
company indicated by 4.15 which has high agreeability with the mean of 3.97 which is high in
comparison to others.
The agreeableness is also in terms of those retailers who felt that TSMs helps to build reputation
of their store with the mean 3.96. Further, it can be demonstrated that the agreeableness is high
with the mean of 3.59 followed by fact that TSMs helps to know about the product category
being sold in stores.
Similarly, it can be analyzed that respondent feeling on the basis of standard deviation with the
standard deviation of 1.113 towards the use which can be preferred using TSMs.
4.13 Cross Tabulation Analysis:

Cross tabulation between outlet type and TSMs useful in retail outlet which are as follows
What Kind of TSM is useful

that increases the That increase that increases One with Total
product the store image the branding multiple
image/display functions
cold store 19 1 0 5 25
grocery 16 0 0 9 25
Outlet kirana
Type Bakery 7 3 2 2 14
Nanglo 3 2 0 0 5
pan shop 9 5 1 5 20
ghu/tky 1 0 2 0 3
poc/bht 3 1 1 3 8
Total 58 12 6 24 100
Table 4.13 Cross Tabulation Analysis
53
Interpretation
The above mentioned table shows that 58 retail outlets believe in TSMs which help to increase
the product image, 12 respondents believe in TSMs that help to increase the store image, 6
respondents believe in TSMs that increase branding and 24 respondents believe those type Of
TSMs which is one with multiple function.
4.14 Cross tabulation between the outlet type and benefit derive from the
TSMs being used
Benefits derive from the TSM being used

Fees paid By Better store Higher Support sales/Placement Total
Company ambience Sales of Goods
cold 10 3 8 4 25
store
grocery 11 0 3 11 25
Outlet Kirana
Type Bakery 1 0 7 6 14
Naglo 1 0 1 3 5
pan shop 7 0 2 11 20
ghu/tky 0 0 3 0 3
poc/bht 1 1 3 3 8
Total 31 4 27 38 100
Table 4.14 Cross Tabulation
Interpretation
The aforementioned table shows that the benefit derived from the TSMs being used which might
be the fees paid by company, better store ambiance, higher sales, support sales/placement of
goods on the basis of survey most of the respondent Benefit from the TSMs which help to
support sales which is 38 out of 100. Some retailers used TSMs for company provided fee which
is 31, for the higher sell 27 outlet respond in term of higher sales and for respondent use TSMs
for better store Ambiance.
54
4.14 Cross Tabulation between the retail outlet and TSMs are provided to the store
TSM material are provided to the store

CTPSU Shelving Nanglo On shop None of the Total
Box display above
cold store 8 7 0 0 10 25
grocery 12 8 0 3 2 25
Outlet kirana
Type Bakery 5 1 0 0 8 14
Nanglo 0 0 4 0 1 5
pan shop 1 1 0 2 16 20
ghu/tky 0 0 1 0 2 3
poc/bht 0 0 0 0 8 8
Total 26 17 5 5 47 100
4.14 Cross Tabulation between the retail outlet and TSMs are provided to the store
Interpretation
The aforementioned table shows different kind of TSMs material used in different store on the
basis of above figure CTPSU is provided 26 out of 100 retail, shelving 17 out of 100,Nanglobox
5 out of 100, on shop display 5 out of 100 and 47 retailers who dont have material but they sell
the cigarette.
Correlation
4.15 Correlation Analysis
In this section, we will discuss the correlation factors and analysis between the various
dependent and independent variables. Table demonstrates the correlation between the various
independent variables and the dependent variable. All the independent variables are positively
correlated to their dependent variables.
55
TSM Reward
TSM Pearson .298*
Correlation 1
Sig. (2- tailed) 0.034

100
100
N
Reward Pearson .298* 1

Correlation
Sig. (2-tailed) .034
N 100 100
TSM Pearson TSM Space_ Area

Correlation 1 .502**
Sig. (2-tailed)
.000
N
100 100
Space Area Pearson .502** 1

Correlation
Sig. (2-tailed) 0
100
N 100
TSM Ambience
TSM Pearson 1 .779**
Correlation
.000
Sig. (2-tailed)
100
100
N
56
Ambience Pearson .779** 1
Correlation
Sig. (2-tailed) . 000
N 100 100
TSM Perceived Usefulness

Correlation
Sig. (2-tailed) .000
N 100
100
Perceived Usefulness .634** 1

Pearson
Correlation
.000
Sig. (2-tailed)
100
100
N
TSM Product Availability

Correlation
Sig. (2-tailed) 0.001
N 100 100
Product Availability .452** 1

Pearson
Correlation
N 100 100
TSM Motivation
57
TSM Pearson 1 .616*
Correlation
N 100 100
Table 4.15: Correlation Analysis
The first independent variable reward has the correlation 0.298 which is positive but not
much correlated with the importance of TSM. It can be said that reward is not much
correlated with the importance of TSM for the retailers
In terms of variable free space, it has the correlation 0.502 which is positive and has a
good correlation with the dependent variable.
Talking about ambience, it has the correlation 0.779 which is positive and highly
correlated with the dependent variable.
In terms of Perceived usefulness, it has thee correlation 0.634 which is also
positive and is well correlated with TSM.
Product availability has the correlation of 0.452 which is positive but not highly
correlated.
HYPOTHESIS TESTING
4.16 Variable Testing

In this section, we test all the hypothesis and investigate the significant relationship
Between all the dependent and independent variables
4.16.1 Testing of independent Variable of TSMs

Hypothesis 1: there is a significant relationship between rewards provided to retailers and TSM.
H0: there is not a significant relationship between rewards provided to retailers and TSM.
H1: there is a significant relationship between rewards provided to retailers and TSM.
Hypothesis 2: there is a significant relationship between free space area of the retails and TSM.
58
H0: there is not a significant relationship between free space area of the retails and TSM.
H1: there is a significant relationship between free space area of the retails and TSM.
Hypothesis 3: there is a significant relationship between ambience of the retails and TSM.
H0: there is not a significant relationship between ambience of the retails and TSM.
H1: there is a significant relationship between ambience of the retails and TSM.
Hypothesis 4: there is a significant relationship between perceived usefulness of the
retailers and TSM.
H0: there is not a significant relationship between perceived usefulness of the retailers and
TSM.
H1: there is a significant relationship between perceived usefulness of the retailers and
TSM.
Hypothesis 5: there is a significant relationship between product availability of the product
in the retail and TSM.
4.16.2 Module Summary

Model Summary
Model R R Adjusted R Std. Error of the Estimate
Square Square
1 .657a 0.431 0.334 12.3764
Table 4.16: Module Summary
a. Predictors: (Constant), Product Availability, Reward, Space Area, Ambience,

Perceived Usefulness
The model summary reflects that the independent variables were responsible for 43.1
percent of the variance caused on dependent variable TSM. So, the remaining 56.9 percent
of the variable causing the variance on dependent variable have been missed out in the
model.
59
Table 4.16.3: The relationship between different constructs of independent variables:
Uses of TSM
Coefficients(a)
Unstandardized Standardized Coefficients
Coefficients
B Std. Error Beta T Sig.
(Constant) 1.15 0.548 2.097 .000
TSMs plays significant role in 0.232 0.085 0.309 2.733 0.008
my store operation
I expect reward from the 0.206 0.101 0.2 2.034 0.007
company for using TSMs
I am satisfied with the reward 0.117 0.099 0.126 1.181 0.241
and profit offered by the
company
I feel TSM utilizes my free 0.126 0.108 0.147 1.165 .000
space area well.
TSMs influences consumer -0.082 0.102 -0.108 -0.801 0.001
for quick purchase
TSMs help to know about the 0.201 0.113 0.267 1.768 0.023
product category being sold in
my stores
I prefer using TSMs -0.085 0.109 -0.109 -0.783 .000
SNPLs TSMs influences 0.091 0.117 0.099 0.781 0.02
consumer for quick purchase
SNPL,s TSMs help to know 0.138 0.112 0.18 1.227 0.023
about the product category
being sold in my stores
I prefer using SNPL,s TSMs -0.165 0.1 -0.208 -1.652 .000
I am satisfied with the reward 0.099 0.088 0.116 1.123 0.3
company
I expect reward from the 0.054 0.099 0.062 0.544 0.588
60
company for using TSMs
SNPL TSMs plays significant -0.287 0.131 -0.294 -2.184 .000
role in my store operation
I believe SNPL TSMs help in 0.122 0.12 0.12 1.023 0.02
increasing sales
Table 4.17: Regression Analysis
Table: 4.17 shows regression analysis run on SPSS between dependent variable (TSM) and
various constructs of independent variables. The table demonstrates the relationship between
the various constructs of independent variables and the motivation to use TSM by retailers by
traders. From the table, following findings are summarized:
1. The relationship between use of TSM and the store ambiance on TSM has Sig. at 0.000,
which is lower than 0.05. Thus the relationship is significant and store ambiance on
TSM has influence on the use of TSM.
2. The relationship between the reward expectation on reward on new launched product of
TSM and the use of TSM has Sig. at 0.008 which is lower than 0.05. Thus there is
significant relationship between them and hence reward expectation on the use of new
launched product of TSM has influence on the use of TSM.
3. The relationship between the reward expectation on reward on brand product of TSM
and the use of TSM has Sig. at 0.241 which is higher than 0.05. Thus there is no
significant relationship between them and hence reward expectation on the use of
branded product of TSM has no influence on the use of TSM.
4. The relationship between the free space area consideration and the use of TSM has Sig.
at 0.00 which is less than 0.05. Hence there is a significant relationship between them
and hence free space area of the retail shop has significant influence on the use of TSM
5. The relationship between the motivation and the use of TSM has Sig. at 0.02 which is
less than 0.05. Hence there is a significant relationship between them and thus
motivation of the retail shop has significant influence on the use of TSM.
6. The relationship between the influence of SNPL TSM and the use of TSM has Sig. at
0.02 which is lesser than 0.05. Hence there is significant relationship between them and
thus Influence of the retail shop has significant.
61
7. The relationship between the preference of TSM and the use of TSM has Sig. at 0.00
which is less than 0.05. Hence there is a significant relationship between them and thus
the design of the TSM has significant influence on the use of TSM.
8. The relationship between the preference of the retails and the use of SNPL TSM has
Sig. at 0.00 which is less than 0.05. Hence there is a significant relationship between
them and preference of the retail shop has significant influence on the use of TSM.
9.The relationship between use of SNPL TSM and the reward and extra profit offer on TSM
has Sig. at 0.3, which is higher than 0.05. Thus the relationship is insignificant and
reward and profit offers on SNPL TSM have no influence on the use of TSM.
10. The relationship between the reward expectation on reward on new launched product of
SNPL TSM and the use of TSM has Sig. at 0.588 which is higher than 0.05. Thus there
is no significant relationship between them and hence reward expectation on the use of
new launched product of TSM has no influence on the use of TSM.
11. The relationship between use of SNPL TSM even having less free space area and the
use of TSM has Sig. at 0.00 which is less than 0.05. Hence there is a significant
Relationship between them and hence utilization of the free space area of the retail shop
has significant influence on the use of TSM.
12. The relationship between the retailers Sales and the use of SNPL TSM has Sig. at
0.02 Which is lower than 0.05. Hence there is significant relationship between them and
thus the retailers sale has significant influence on the use of TSM.
62
4.16.3. The Relationship between different independent variables of use of TSM
Model Unstandardized Standardized T Sig.
Coefficients Coefficients
B Std. Error Beta
(Constant) .651 .186 3.492 .001
Reward -.043 .020 -.102 -2.112 .355
Space Area .102 .030 .158 3.388 .001
Ambience .143 .034 .209 4.227 .000
Perceived Usefulness .041 .033 .061 1.238 .020
Product Availability .044 .027 .077 1.621 .037
a. Dependent variable TSM

Table 4.18: The relationship between different independent variables of use of TSM
Now Regression analysis run on SPSS between dependent variable (TSM) and independent
variables, generated the result presented in table 4.18 The table validates the relationship
between the various independent variables and the motivation to use TSM by retailers by
traders. From the table following findings are summarized:
1. The relationship between the reward and the use of TSM has Sig. at 0.35 which is
higher than 0.05. Hence there is no significant relationship between them and thus
the reward has no significant influence on the use of TSM.
2. The relationship between the space area and the use of TSM has Sig. at 0.01 which
is less than 0.05. Hence there is a significant relationship between them and hence
the space area has a significant influence on the use of TSM.
3. The relationship between the ambience and the use of TSM has Sig. at 0.00 which is less
than 0.05. Hence there is a significant relationship between them and hence the ambience
has a significant influence on the use of TSM.
4. The relationship between the perceived usefulness and the use of TSM has Sig. at 0.20
which is higher than 0.05. Hence there is insignificant relationship between them and
hence the perceived usefulness has no significant influence on the use of TSM.
63
5. The relationship between the product availability and the use of TSM has Sig. at 0.037
which is less than 0.05. Hence there is a significant relationship between them thus
product availability has significant influence on the use of TSM.
4.16.4 Model Summary

Std. Error of the
Model R R Square Adjusted R Square Estimate
a
1 .116 .134 .011 .926
Table 4.19: Model Summary
a. Predictors: (Constant), Motivation them and hence the product availability has a significant
influence on the use of TSM
4.16.5 Testing of variable between TSM and Motivation
Hypothesis 8: there is a significant relationship between the use of TSM and the motivation.
H0: there is no significant relationship between the TSM and motivation.
H1: there is a significant relationship between the TSM and motivation.
The model summary reflects that the TSM were responsible for 13.4 percent of the variance
caused on motivation. So, the remaining 86.6 percent of the variable causing the variance on
sales have been missed out in the model.
64
The Relationship between TSM and Motivation
Unstandardized Standardized
Coefficients Coefficients
Std.
Model B Error Beta T Sig.
1 (Constant) 3.461 .212 16.323 .000
Motivation .142 .056 .116 2.541 .011

a. Dependent Variable: TSM Important
Table 4.20: The Relationship between TSM and Motivation
Regression analysis is calculated on SPSS between dependent variable motivation and

independent variables (TSM). The table validates the relationship between TSM and
motivation. From the table, it can be summarized that the relationship between the TSM and
motivation has Sig. at 0.011 which is less than 0.05. Hence there is a significant relationship
between them and hence the TSM has a significant influence on motivation of the retailers.
65
CHAPTER 5
FINDINGS,
RECOMMENDATION,
CONCLUSION
66
CHAPTER IV
FINDINGS, RECOMMENDATIONS, CONCLUSIONS
5.1 FINDINGS:
Based on the data presented and analysis performed on the responses of the
respondents, numerous findings were noted which are listed below
Sample size was 100 which included all types of retail shops.
Majority of the respondents were Cold store and Grocery Kirana with 25 percent
composition followed by Pan Shop with 20 percent.
3. The majority of the retailers brand of cigarette that is sold mostly is surya luxury king
with 86 percent 24 caret lights and surya lights with 5 percent and 2 percent.
The majority of the retailers have the daily sales of Rs 0.-3000 with 74 percent
composition followed by those retailers whose daily sale is Rs.3000-5000 with 20 percent
composition.
5. Majority of the retails open every day with 64 percent composition followed by 34
percent opens 6 days a week.
6. Majority of retailers sold cigarettes both (packet, stick) with 57 percent composition
followed by 31 percent.
7. Majority of retailers cigarettes sales per day is 5-10 packets with 53 percent more than
20 packets sold by 24 percent and remaining 23 percent sold less than 5 packets.
8. Majority of retailers shop prefer using Counter Stacking Product Unit (CTPSU) with
55 percent, Shelving 24 percent and 11 percent who are not using any kind of Trade
support materials.
The majority of the retailers use TSM with 89 percent composition and remaining
11percent do not use TSM. 89 percent of the retailers have an impression that TSM is
important part of the store and remaining 11 percent of the retailers feel that TSM is
not important.
58 percent of the retailers feel that TSM should escalate the Product image/
Display followed by 12 percent of the retailers who feel that TSM should increase
the store image and 6percent they feel that it should be increasing branding and
remaining 24 percent prefer one with multiple functions.
67
In terms of benefit derive from the TSM being used 38 percent of the retailers
respondent it helps to support sales,31 percent retailers are used TSM for fees paid
by company,27 percent retailers using TSM because it helps to Higher sales and
remaining 4 percent people are using ,it create better store ambiance.
In Terms of Descriptive Mean Analysis
Respondent were classified based on highly preferred and less preferred
where 1 is highly preferred and 6 is less preferred 2.08 is near to 1 so most of
retailers chose between two company for product for trade they were select
important factor was Merchandising /TSM/ Advertising support given by the
company. And with the mean of 4.86 which is near to 6 it suggest they ranked
the packaging was least preferred for trade.
Respondent were 58 retail outlet believe in TSM which help to increase the
product image, 12 respondent believe in TSM that help to increase the store
image,6 respondent believe in TSM that increase branding, 24 respondent
believe those type of TSM which is one with multiple function.
Most of retailers used TSM due to support sales or it helps to placement of
goods 38 percent retailers benefited TSM which enhances support sales.3
1percent
Retailers they take advantage from the company it help to motivated to use
TSM.
In terms of correlation analysis
All the independent variables of TSM were found to be positively correlated but
among all, ambience was highly correlated with the Pearsons correlation .779
followed by perceived usefulness with thePersons correlation .634.
Reward was the variable which was found to be least correlated with the Pearsons
correlation .298 compared to other variables.
68
14. In hypothesis testing ,it was found that
Not all the independent variables had a significant relationship with the TSM
.Space area, ambiance, perceived usefulness; product availability had a significant
relation with TSM.
TSM has a significant relationship with the motivation of the retailers.
15. Currently apart from SNPL most of retailers are using TSM of Chaudhary Group
comprising 29 percent and then followed by bottlers Nepal and Pepsi with 23 percent,
22 percent beside that small percentage is also hold by Cadbury and Dabur Nepal.
69
5.2 RECOMMENDATION
The findings of the study are imperative and serve a strong foundation to generate
implications for managers at Surya Nepal. The findings of this study would explicitly
suggest that TSM should be provided to retailers considering their concerns also. TSM
is not only about promoting the product to consumer end, but it is equally important for
retailers to ponder their interest also. As a Trade marketing Manager, it is implied to
work on every dimension of those variables to increase the effectiveness of TSM at
trade level. Based on these findings, innumerable
Suggestions can be offered to Surya Nepal which will help to better use and effect of
TSM at trade level. The suggestions are listed in the following details
Despite of lower sales, TSM should be provided to Nanglo and Pan Pasal
Despite of less space, Pan pasal and Nanglo retailers prefer to use TSM
Small NangloPasal discarded by dealers in terms of providing TSM
Even there is low correlation between reward and motivation to use TSM, some
kind of reward should be provided on New launched product to motivate
retailers to sell the product.
Since impulse purchasing is also low for new launched products, retailers have
to push consumer to purchase the product, Extra perk on it will also motivate
them.
TSM should be designed more prioritizing retail shop rather than just focusing
on visibility of the product.
Product differentiation can also be done by differentiating on TSM of the
product.
Since perceived usefulness is highly correlated with the retailers, design of TSM
should be done considering the usefulness of them too. E.g.: Shelves Desk,
Display Stand.
70
Recycling and maintenance is something which should always be taken into
consideration for the manufacturers. Renovation of TSM at some interval of
time is very important.
To push consumer for impulse purchasing for new launched product,
effective promotion with well-designed TSM can be effective.
Leasing of space area or sheleves of the retails can be useful for both retailers
and manufacturers.
TSM should be designed in two different sizes since there has been space area
issue with the retailers. Those retail shops that have whatever space area can use
TSM as per their requirement.
Companies can also vigor towards TSM with technology. For instance, if
SNPL is coming up with TSM of cigarettes, any alternative of lighter with the
help of technology can be handy.
To increase the effectiveness of TSM, the company should regularly conduct a
feedback study so that progressive improvement in TSM can be done to cater to
the changing needs of the retailers and consumers as well.
71
5.1 CONCLUSION
The study, with its focus on understanding the different variable which traders and retailers
consider while persuading TSM, has been successful in doing so. The study revealed the
demographic profile of the retailers in term of shop category, daily sales, frequency of shop
open, and selling behavior. Further, the different variables and effects of TSM at the trade level
were clearly identified.
The finding of this study is somehow interesting. Few demographics of the retails have a huge
an impact towards the perception of TSM. Talking about the daily sales, it can be analysed
that, importance of TSM increases with the increase in the daily sales of the retails shop.
Majority of the Nanglo shops and Pan Shops have less daily sales and they have less belief
towards TSM. In terms of expectation towards TSM, majority of the retail shop who believes
TSM is important for their shop feels that TSM should escalate the shop image and the
majority of the retails who believes that TSM is not important for their retails feel that TSM
should just focus on their respective product image. We can demonstrate from this finding that
majority of the retails who do not have belief towards TSM are relied on product and brand
image rather their store image and those retailers who believe to have a good store image
prefer to have TSM.
The result of relative mean is appealing in some way. Even though reward is considered as
least relatively mean but when we analysed the constructs of the reward, it was found that
reward expectation on new launched product is extremely high at agreeability level whereas
the reward expectation on branded product on the use of TSM is very low at agreeability level.
We can analyse that since consumers do not easily trust new launched product because the
brand awareness is low, consumer hesitates to purchase the product. So TSM is just not enough
to pull them to purchase the product, retailers have to push the consumer and make an extra
effort to sell the new launched product. So there is the high reward expectation. For TSM of
branded product, reward expectation is low because consumers are already aware of the
product because of the brand loyalty and brand awareness, and that is the benefit retailers get
and the selling is high for them without making any effort and that is also the strong reason for
impulse purchasing being high in mean for the branded product and low for newly launched
product. Product availability and ambience is high in terms of mean calculation which means
majority of the retailer expect to have a good ambience with the help of TSM and retailers also
72
believes in making aware to the consumer of the availability of the product through TSM of the
different product.
Space area is also one of the important variables while retailers consider TSM. Since Nanglo
shops and Pan Shops have less space area and that is also one of the reasons that they dont
feel positive about TSM.
The result of correlation is somehow similar on what we get on relative mean analysis. Every
variable are positively correlated with TSM which mean all the variables are connected with the
use of TSM by retailers. Again reward was least correlated compared to other variables and
ambience was highly correlated. Impulse purchasing also has a high correlation with sales
boost. The correlation is also high between the use of TSM and motivation.
The result of hypothesis testing to examine the influence of marketing mix factors on purchase
decision produce the result as expected. Expect for reward, every variables have a significant
relationship with TSM. TSM and impulse purchasing also has a significant relationship and so
is the impulse purchasing and sales. In term of testing variables, result has likely come as per
our conceptual framework which was developed from pilot testing and literature review.
73
BIBLIOGRAPHY
References
o Buchanan, S. (2013). Designing a point of purchase display (POP).Designing a point of
purchase display (POP).
o Etzel, M.J., Walker, W.J., &Stanton, W. J. (2006). Marketing, Boston: McGraw Hill.
o Holly Bastow Shoop, D.Z. (1991). Visual Merchandising A guide for small retailers
o Philip Kotler, Kevin Lane Marketing Management, A South Asian Perspective,
Twelfth Edition
o Mousumi Majumdar,K. K.(2012). Innovation in In Store Promotions: Effects on
Consumer Purchase Decision. European Journal of Business and Management.
Websites
www.google.com
www.snpl.com.np
www.itcportal.com
ANNEXURE
QUESTIONAIRE
Survey on A study on Trade Support Material (TSMs) being deployed at Kathmandu

valley for Cigarette Business- Trade Perspective
I am Bishnu Prasad Bhushal, student of BMS College of Engineering Management and research
center, Bangalore, India. This survey is done for the partial fulfillment of MBA course of
Business Research and Methodology from trade point of view. All the responses will be kept
confidential.
1. Outlet Type:
Cold Grocery Bakery Nanglo Pan Ghu/tky Poc/Bht
store store shop
2. Name of the retailer shop:

3. Location
4. Which brand of cigarettes do you sell mostly?
SNPL Availability
20s 10s
Surya legend
24 caret f/f
24 caret lights
Surya Luxury King
Surya lights
Surya polar ice
Shikhar
Shikhar
Shikhar select
Khukuri
Pilot
Pilot menthol
4. What is your daily sales turnover?
a. Less than 3000 b. 3000-5000 c. 5000-10000 d. Above 10000
6. How many days your retail shop is opened?
a. Every day b. six days a week c. Five days a week
7. Do you sell cigarette in packet or pieces?

a. Packet b. Sticks c. Both
8. How many cigarettes do you sell per day?

a. Less than 5 packets b. 5-10 packets c. 10-15 packets
d. More than 20 packets
9. What kind of TSM materials are provided to your store by SNPL?

a. Counter top product stacking unit (CTPSU) b. Shelving
c. Nanglo Box d. On shop display
10. Do you use the trade support materials provided?

a. YES b. NO
11. If not why?
12. What kind of trade support materials you think is useful?

a. that increases the product image/display b. that increases the store image
c. that increases the branding d. one with multiple functions
13. What is the benefit you derive from the TSM being used?
a. Fees paid by company b. Better store ambiance
c. Higher Sales d. Support sales/placement of goods
14. If you would have to choose between two company products for trade, what would be
the most important factor? Please rank the following factor (1 for the most important
6 for the less important)
a. Packaging/shape and design of the product
b. Credit facilities
c. Merchandizing/TSM/advertising support given by the company
d. Friendly behavior of the company personnel
e. High margin/easy selling products
f. Reward/Offer given by the company
. 15. 1 to 5 Likert Scale (1 for strongly disagree to 5 for strongly agree) - Applicable for all TSMs
Strongly Strongly
S.N Statement Disagree(2) Neutral(3) Agree(4)
Disagree (1) Agree(5)
I believe TSMs help in

building reputation of the
1
company/brands
I believe TSMs help in

2
increasing sales
TSM plays significant role in

3
my store operation.
I expect reward from the
4
company for using TSMs.
I am satisfied with the reward
5
company.
I believe TSM increases store

6
ambience
TSMs influence consumer for

7
quick purchase
TSM helps to know about the
product category being sold
8
in my stores
9
I prefer using TSM.
17. Which Companies TSMs are you using currently apart from SNPL?
18. Rank Based on your experience how would you rate the overall usefulness of TSM material
provided by SNPL in a scale of 1 to 5
S.N Strongly Disagree Agree Strongl

Statement Neutral
O Disagree y
(1) (2) (4) Agree
(3)
(5)
1 I believe SNPL TSMs help
in building reputation of the
company/brands
2 I believe SNPLs TSMs help

in increasing sales
3 SNPLs TSMs plays

significant role in my store
operation.
4 I expect reward from the

company for using TSMs.
5 I am satisfied with the

reward and profit offered by
the company.
6 I believe SNPLs TSM

increases store ambience
7 SNPLs TSMs influences

consumer for quick purchase
8 SNPLs TSM helps to know

about the product category
being sold in my stores
9 I prefer using SNPLs
TSMs.
10 I feel motivated after the use

of TSM of the products.
11 I feel confident after the use
of TSM of the products.

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CHAPTER 1

1.1 INTRODUCTION ABOUT THE INTERNSHIP

An internship is a platform which provides an opportunity to observe, learn, practice and

1.2 TOPIC CHOSEN FOR STUDY

1.4 OBJECTIVES OF STUDY

The scope of the research focuses on the following content:

1.6.1 Research Type

1.6.3 Study Location

1.6.4 Sampling Technique

1.6.6 Data Entry, Tabulation and Analysis

Trade Support Material (TSM) is a terminology used by manufacturers. In marketing term, it is

1.7.1 CONCEPTUAL FRAMEWORK:

Free Space Area

Ambience TSM Supports Sales

Fig 1 Conceptual Framework

Hypothesis 1: There is significant relationship between rewards provided to retailers and

Hypothesis 4: There is a significant relationship between perceived usefulness of their retailers

Hypothesis 5: There is a significant relationship between product availability of their product in

1.9 LIMITATIONS OF THE STUDY

The major limitations of the research project are mentioned below:

No previous research or study at trade level.

2.4 COMPANY PROFILE

Previous Name : Surya Tobacco Company

Promoters : British American Tobacco (2 percent holding)

: ITC limited (59 percent holding)

: Nepali Entrepreneur (39 percent holding)

Manufacturing Plant : Simra, Nepal

Head office : Kathmandu, Nepal

Introductory phase brands : Bijuli, Naulo

Current brand : Surya, Shikhar, Bijuli, Khukuri, Chautari, Pilot

Retailers : around 75000

Market Share (in terms of value)

Cigarettes industry : 70 percent 75 percent

Premium Segment : 95 percent

High Segment : 82 percent 85 percent

Lower segment : 60 percent

It is most sellable brand in Nepal in tobacco product categories.

Chairman Prabhakar SJB Rana

Surya Nepal Holds the Following Values

Respect for people

2.5 Quality Policy

Head of VP Tech. / VP VP Corp. Legal

Department Department Department Department Department

Fig 2: Organization Chart of SNPL

2.6 Products and Service Profile

Surya Legend Surya Luxury

Surya Luxury Kings

2. Segmentation based on Demography

3. Segmentation on basis of psychograph

2.6.4 Safety Matches

Competition on Safety Matches:-

2.7 SWOT Analysis

2.8 Future Growth and Prospects

Total Current Liabilities 3,95,11,78,853 2,46,94,86,785 2,68,77,75,141 1,67,98,59,463

Table 2.1 Financial Statement of Surya Nepal Pvt.Ltd.

3.2 Importance of Trade Support Materials in Business

Some importance of point of trade support materials (TSMs) are as follows:

2. Escalate the product image

3. Better Store Ambiance

Some other importance of TSMs is as follows:

Outlet Type Frequency Percent (%)

Table 4.1 Outlet Type

Fig 4.1 Outlet Type

4.2 Table Showing Brands of Cigarettes that are mostly sold: