Distribution Channel of Scoobeeday

Effectiveness of distribution channels of Scoobee day bags
CHAPTER-I INTRODUCTION
INTRODUCTION
In ancient days, education consisted of oral training followed by some manual labor. It was the practices of the traditional Gurukula educational system. The students then known as the disciplines sit at the feet of guru and learn from face to face. There was nothing to carry at that time. As days go by, education has become more textoriented and the students are bounded to carry books in their hands. In olden days, carrying books was not a tire some job, since the number of books was very limited. As the number of books increased along with the advent of the modern education system, it is impossible for students to carry their books and allied utensils in their hands. Nor is it possible for them to carry in paper wrap, paper fold etc. it is in this context bag were introduced for the use of children to keep their paraphernalia. The bag is generally a container made of flexible material such as paper, cloth, leather etc. with an opening at the top used for carrying things from place to place. In the present setup, bag is an important part of the student community. Now bag are designed to suit the various requirements of students. It is useful, comfortable, fashionable and convenient. There are Varity of bags with different features available in the market. The young students are haunted by the convent well designed bags and the parents also go for durable and comfortable bags to be used by their children. DISTRIBUTION CHANNEL A distribution channel is a set of interdependent organizations that help make a product available for use or consumption by the consumer or business user. Channel intermediaries are firm or individuals such as wholesalers, agents, brokers or retailers who help move a product from the producer to the consumer or business user.
A companys channel decision directly affects every other marketing decision. Distribution decision can some time give a product a distant position in the market. The choice of retailers and other intermediaries is strongly tied to the product itself. Manufacturers select mass merchandisers to sell mid price range products while they distribute top of the line products through high-end department and specialty stores. The firm sales force and communication decisions depend on how much persuasion, training, motivation, and support to channel partners need whether a company develops or acquires certain new products may depend on how well those products fit the capabilities of its channel members. Number of channel level Company can design their distribution channels to make products and services available to customers in different ways. Each layer of marketing intermediaries that performs some work in bringing the product and its ownership closer to the final buyer is a channel level. Because the producer and the final consumer both perform some work, they are part of every channel.
Figure 1-A Customer marketing channel

Produce r Produce r Produce r Wholesaler Retailer Retailer
Consumer
Consumer
Consumer
Channel 1
Channel 2
Channel 3
Figure 1-B Business marketing channel 3
Produce r
Producer
Produce r Manufacturer s representative or sales branch Business Distributor Business Consumer Channel3
Business Distributor
Business Consumer Channel 1
Business Consumer Channel 2
The number of intermediary levels indicates the length of a channel. Above figure 1-A shows several consumer distribution channels of different lengths. Channel 1, called a direct marketing channel, has no intermediary levels, the company sells directly to consumers. The remaining channels in figure are indirect marketing channels, containing one or more intermediaries. Figure 1-B shows some common business distribution channels. The business marketer can use its own sales force to sell directly to business customers. Or it can sell to various types of intermediaries, who in turn sell to these customers. Consumer and business marketing channels with even more levels can sometimes be found, but less often. From producer point of view, a greater number of levels mean less control and greater channel complexity. Moreover, all of the institutions in the channel are connected by several types of flows. These include the physical flow of products, the flow of
ownership, the payment flow, the information flow, and the promotional flow. These flows can make even channels with only one or a few levels very complex. Functions of distribution channels Distribution channels perform a number of functions that make possible the flow of goods from the producer to the customer. These functions must be handled by someone in the channel. Through the type of organization that performs the different functions can vary from channel to channel, the functions themselves be eliminated. Distribution channels provide a number of logistic or physical distribution functions that increase the efficiency of the flow of goods from producer to consumer. Distribution channels create efficiencies by reducing the number of transactions necessary for goods to flow from many different manufacturers to large number of customers. This occurs in two ways, the first is called breaking bulk. Wholesalers and retailers purchase large quantities of goods from manufacturers but sell only one or a few at a time to many different customers. Second, channel intermediaries reduce the number of transactions by creating assortments providing a variety of products in one location. So that customers can conveniently buy many different items from one seller at one time. The transportation and storage of goods is another type of physical distribution function Retailers and other channel members move the goods from the production site to other location, where they are held until they are wanted by customers.
CHAPTER-II INDUSTRIAL PROFILE & COMPANY PROFILE
INDUSTRIAL PROFILE
Bag industry takes a very important place in this century. Manufacturing sector is the largest sector after agriculture and its importance in Indian economy is recognized 6
for its contribution to industrial production. Bag makers are the leading manufactures in the economy. In India different types of bag manufactures exist. The bag industry includes all types of bags which are used by both men and women. The industry includes Hand bags, Brief cases, Wallets, Purses, Travel cases, School bags, Luggage bags, etc. The fabrics used are nylon, plastic, denim, leather, polyester etc. There is lot of school and college bag manufactures in the market. They offer wide range of bags and in exclusive designs and follow latest trend and fashion. They follow a professional approach to design quality products. The domestic market act as the back bone of this manufacturing sector. These industries require both labour and capital for production. In India where large numbers of people are unemployed, these industries are best suited because they give large employment opportunities. The advantage of these industries is they have much greater flexibility in their operations. They can be easily adapted to individual tastes and changing fashion of the century. Leather Bag Industry It covers all type of leather bags used by men and women alike. It includes different kinds of bags. These bags are available in different designs and styles to suit the purpose they serve. The leather used to manufacture leather bags includes sheep stain, pig stain, crocodile stain, synthetic leather etc.
School Bag industry Every young child develops their takes in everything from the books they read, shoes they wear and the food they eat. For them school bags are one of the most important accessories that are used on a regular basis. Designs of school bags are 7
designed and created using all possible material known to man, using various processes to get wide range of styling. School bags are shaped by the way they are cut and sown, but usually they have some stiffness or practical frames which hold their shape. School Bag Industry in India Since independence the Indian Government has tried a lot towards increasing literacy in India. School bags being a seasonal product are mainly sold in the beginning of each academic year with increasing competition in the industry. The manufacturers are trying to find their position in the market. The areas of differentiation between the vendors are, Raw material Style Quality Durability Economic design Innovative features
Most of the vendors sell the bags through retail outlets like foot wear store, general store, textile store etc. Most of the manufacturers advertise and market their
products on the web. The target primary audiences for campaign are children and the secondary audiences are their parents. Television is the most preferred media currently used by the manufacturers. The point of purchase promotion strategy is also followed by the manufacturers through the retail outlets. The major school bag manufacturers in India are, Bharath packers, New Delhi 8
Uniplas, Chennai Imprez, Mumbai Balaji Bag, Banglore Brandz, New Delhi Noor, Tamilnadu ANNA GROUP, KERALA Lunar Bags, Mysore
School Bag Industry in Kerala School bag industry is dominated by the unorganized sector, except for a few national brands like Duck Buck and Bata. Most of the players have seasonal nature. The demand for the product arises during the school opening. Even though school bags are mainly dominated by the local manufacturers, branded school bags are also available. One of the well known names among the branded school bags is the brand Scoobee Day. School bag industry focuses a great threat from China. Chinese bags are less costly than our local bags. However the branded companies come up with providing advertisements in television. The school bag industry mainly focuses on the kind and pre-primary segments. These groups are more addicted to comic characters. The branded companies
marketing section is so vigilant to know the pulse of the market. They advertise through the catchy stories of these comic characters and attract the attention of the kids. So each branded companies compete to capture the attention of kids and the youngsters.
COMPANY PROFILE
KITEX LIMITED Anna groups Textile unit KITEX LIMITED was established in 1975 at Kizhakkambalam Always in Eranakulam district. This prestigious company one of the vibrant divisions of Anna Kitex group of companies is a celebrity among industrial giant in our country. Their products have high demand and they were trying to create and maintain their customers in this competitive world with their high quality. The shares of 10
the company are held by the proprietors themselves. Kitex has strength of well experienced managers who guide the organization towards excellence. Kitex has ISO 9001-2008 certification. Kitex Limited has seven departments and they follow military type of organization structure. Through the years, the company has carved a niche for itself in this highly competitive industry with its tradition of world class quality of its products. The Kitex range of garments manufactured in the multi core factory is popular brand that is recognized not just within India, but abroad too. Catering to the fashion conscious markets across the world made from 100% combed cotton. Kitex bed sheets are suitable for all climates and come in a variety of shades and designs. Kitex Limited is a union free company. The plant has the capacity to produce cotton fabrics, polyester blends, grey cloth, bed sheets, lunges, dhoties, fabrics school and college bags, travel bags, inner wears, shirting and suiting, kids wear etc. The plant functions around the clock in three shifts and it has a capacity to produce 35,000 square meters per day. The products are marketed through the network of over 2000 dealers.
The company
was established to set up an efficient estate that provide
technical, industrial, financial and marketing facilities to power loom owners and to create job opportunities. To create unemployed considerable infrastructure facilities have been built up by way of building, electrical distribution systems, supporting machineries for warping, sizing etc, to help power loom owners. About 400 power loom were established in the premises under the banner of Kizhakkambalam Textile Limited (which has been renamed as Kitex Limited) The group got highest regard for the welfare of the employees and public several charitable programs are organized for the lower strata of the society. The group is 11
also providing a very good accommodation and canteen facility to employee who hails from all over India In a market survey done in 2007 consumerable product named TOP 20 PRODUCTS in Kerala, Kitex got 11th rank with a score of 201.8736. The rank decided on basis of consumers acceptance or popularity.
VITAL STATISTICS
Name Address Registered office Year of commencement Nature of incorporation Nature of business Chairman
: KITEX LIMITED : Kizhakkambalam, Alwaye, Ernakulam : Kizhakkambalam : 1975 : public limited company : manufacturing cotton textiles, bags cotton fabrics, grey. : Mr. M.C. Jacob.
Managing Director Types of product Name of product Brand name of product
: Mr. Bobby M Jacob : Industrial product and consumer products : Scoobee day bags and Trawell day bags. : KITEX.
VISION A world class manufacturing company focusing on all round business excellence through a Total Quality Management (TQM) system with committed leadership, effective team work, delighted customers and satisfied employees in an environment friendly organization. 12
Future vision of Kitex Limited To reach excellent quality standard in the coming years. To keep in pace with modern technologies and concepts. To organize supply of material at minimum cost without any compromise in quality. A world class manufacturing company focusing on all round business excellence through Total Quality Management (TQM) system with committed leadership, effective team work, delighted customers and satisfied employees in an organization.
MISSION
To manufacture fabrics and processed fabrics as per the specification efficiently in a professional and environment friendly manner, on time and at the right cost with high customer specification to become a world class organization through continuous improvement.
QUALITY OBJECTIVES 2010-2011 Fabric Division
To maintain the sales quantity of 2009- 2010 during the years & 2010-2011 in the context of global recession. To reduce the sales below 0.25% of the total sales volume. Bag Division To increase the sales quantity of school bags by 10% with respect to the sales quantity for the previous year. To reduce the customer complaint by 10% with respect the previous year. Garment Division 13
To increase the capacity utilization by 25% from the existing level. To increase the numbers of dealers by 25%. Quality policy We are committed to manufacture and deliver quality fabrics, Bags and Readymade garments as per the costumes specification and requirements, efficiently in a professional and environment friendly manner on time and at most customer satisfaction while during to become a world class organization through continual improvement.
SRATEGIC BUSINESS UNIT OF ANNA GROUP ANNA GROUP OF COMPANIES More than three decades ago, in 1968, when Mr. M.C.Jacob founded the Anna Aluminium Company, he made a break with the past. Belonging to an affluent family of plantation owners, he ventured into the risky world of manufacturing industry and hoped for the best, while working very hard to make his maiden venture a success.
ANNA ALUMINIUM Anna Aluminium is the flagship company of Anna Group. Engaged in the manufacturing and marketing of Vessels and Utensils as per ISI standards for the past
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three decades, it is presently the only company having ISI Certification for Vessels in Kerala. The company manufactures vessels only using 99.5% pure Aluminium ingots. SARAS SPICES Saras spices were founded in 1978 to process and market, domestically and internationally. Spices and hill product like pepper and candomom, turmeric, masala & curry powder. High standard of quality and hygiene have won accdades at home and abroad as well as AGMARK etc.
KITEX LIMITED Anna groups weaving unit, Kitex limited was established in 1975. The company is engaged in the production of fabric made of cotton and other blends grey cloth, bed sheets and lungies. Through the years, the company has carved a niche for itself in this highly competitive industry with its tradition of world class quality of its products. The
Kitex range of garments manufactured in multi-crore factories are a popular brand that is recognized not just with in India but abroad too, creating to the conscious markets across the world. Made from 100% combed cotton, Kitex bed sheets are suitable for all climates and come in variety of shades and designs. At the down of new millennium Kitex entered into the school bag and college bag industry under the brand name Scoobee day and they also entered in to the production of Travel day bags under the brand name Trawell day. Some of the important products available under Kitex are:

Dogobert shirting and suiting. Agna and Adonis innerwear. Scoobee day bags. Trawell day bags. 15
KITEX GARMENTS LIMITED Kitex Garments Limited is developed solely to manufacture and export readymade garments like hosiers, shirts woven, polar fleece, t-shirts, night wears and cotton under garments like inner wear, outer wear, and knitted cotton wears. The highly equipped and flexible manufacturing system makes Kitex Garments extremely capable of adapting vigorously to the changing needs of the world fashion market. The company has stopped the production and export of adult garments and will focus exclusively on childrens garments for which a new company is floated Kitex Childrens Wear Limited.
KITEX COMMUNITY COLLEGE Kitex community college is started for the purpose of training for unemployed people to provide employment opportunities. Presently the courses are available in the
community college are Life copying, Communication General English, Apprenticeship and training, tailoring, bag making and utensil manufacturing.
SEA LAND MARINE LIMITED. Its a new company incorporated with a view to the new trust area namely Marian exports. The company has acquired over 100 acres in Pondicherry for setting up an integrated aqua culture division, comprising hatchery and grower ponds. Increased field of shrimps through effective scientific management has enabled to bring in much ridded foreign exchange to the company.
KITEX EXPORTS LIMITED. The Kitex Export Limited is the merchant export house of the Kitex group exporting a range of all products all over the world.
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MARKETING DEPARTMENT OF KITEX Kitex Limited has got a very good marketing department, controlled by efficient and dynamic marketing managers. Marketing Manager reports to General Manager and Managing Director. Marketing Department is divided in to three sections such as Marketing (Greige Fabric) Marketing (Finished Fabric/bags) and Marketing (Advertising and sales promotion). Under each section Assistant Managers, Marketing Executives, salesmen are there to assist him. The company markets its processed products mainly through dealers. Almost all Kitex products are available at the dealer shops. The products are transported to the
dealers by delivery vans. Sales executives take orders of different items from the dealers once in a month. The company is selling its greige fabric as such to various garment exporters to Mumbai, Delhi, Calcutta, Ahmadabad, etc. 75% of the sales is done through authorized agents on commission basis and balance is through direct marketing. The garments manufactured by the group under the brand name Kitex are accepted all over the world. Marketing Manager is the one who decides the marketing strategies that is to be adopted and every major decision, which affects marketing. But while making some strategies and important decisions approval of the Managing Director is required. After collecting the orders from the dealers through sales executives the Marketing Manager have to forward the orders to production department. Marketing Manager and Production Manager sits together and decide the production plan. 17
COORDINATIN OF MARKETING ACTIVITIES The marketing executive in Kitex follows certain procedures. All sales executives have to report to the assistant managers in sales every day. The assistant manager and marketing manager are in constant touch with the sales executives who are in the field. The sales executives have submitted daily sales report in all Mondays. There is meeting of all personnel in marketing department is presided by the general manager. In this meeting all the activities and achievements are discussed. New plans and strategies to increase the sales formulated and other issues are discussed.
MARKETING POLICY Kitex has a dealer network of more than 2500 dealers spread all over Kerala, Karnataka and Tamilnadu. There are direct outlet in Kerala and Tamilnadu. Dealership are allotted only after assessing credit worthiness, efficiency, efficiency etc the companys sales representatives deliver the goods to the dealers at their places as per the order placed by them. The company motivates the sales executives by providing them classes of expert trainers in sales. The dealers get 10% interest on their trade deposits annually. The company also does various activities for motivating the dealers. If a dealer achieves the target placed by the company then he will get various gifts such as free domestic tours, foreign tours, price coupons etc the company also conduct dealer meets where all dealers along with their families come together and celebrates. Salesmen are also motivated by the company by giving prize coupons which will be deposited in the boxes of order. MARKETING STRATEGY 18
Marketing department of Kitex is very vigilant of the external and internal environment and well aware of the market potential, major competitors, strength and weaknesses of the company etc. As a result of stiff competition, the top management has appointed a general manager (marketing) who looks overall activities very efficiently. The company uses various promotional tools such as advertisement in print media and television. Earlier the company used to advertise I FM Radio. But now after doing research, the company officials found that the effect of those Radio advertisements is not up to the market. The company has got various advertisement agencies like Chavera
Agencies, X Dous and TVC Factory etc. In all promotional activities emphasis is on the quality of the product. The company also gives one year guarantee for all its products. MARKET SEGMENTATION Market segmentation is made on the basis of age group; task and preference etc. and the marketing segmentation procedure of Kitex mainly focus on survey. Marketing manager heads the survey process and the staff of research and development department does this process which include internal interview with a focus group of customers. These surveys will help to know the changing behavior of customers taste and preference etc. Using research and developments which is administrated to a sample of customer to collect data on the following, brand awareness and rating, product usage and patter, demographic, psychographic or graphical details of respondents. MARKRTING MIX It consists of everything a firm can do to influence demand for its products. Kitex also follows the idea of marketing mix, they are,
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Place mix Location of the plant is one of the first decisions an entrepreneur has to make earning maximum profit. Location determines the survival as well as the property of business in free market economy. The unit is located in Kizhakambalam, Aluva. The total extend of land is about1650000 square feet. It is well connected with the road. The availability of skilled and unskilled labor is also a factor in selecting the location.
Product mix The greige fabrics produced are of finest quality and mostly used for export purpose. They provide greige fabric lungies, bed sheets, mull etc. In various product is reputes for its quality and free weaving defects up to greater extents. The special feature is that raw materials are passed through strict inspection. Price mix The company maintains a stable price for a long period of time. Price of products depends upon the price of the yarn. It maintains a constant price and concentrates on the quality of the product. So it requires less investment in advertisement and sales promotion and also a very well formulated pricing policy is provided. Promotion mix To promote its products advertisements are used by Kitex. The basic function of an advertisement is to influence and motivate people to buy products. In Kitex various advertisement agencies are called upon and brief idea is given about what to advertise and these agencies prepare a pre-demonstration. 20
Television Video Closed circuit Print media Grahalakhmi
- Dooradarshan, Asianet, Surya etc - CEE Videos, SAN Communication - KSRTC, Railway station etc - All Malayalam Dailies, Magazines like Vanitha, etc.
Demonstration Advertisement agency Paper advertisement
- Clubs and Exhibitions, Banner, Metal boards, Wall paper etc. - TVC Factory Ernakulam - Chavera Agency, X Dous
KITEX CHANNEL OF DISTRIBUTION Distribution is the act of carrying goods or services from the producer to the consumer. Distribution of consumer goods, Producer Producer Producer Consumer Retailer Wholesaler Consumer Retailer Consumer
Distribution of industrial goods, Producer Producer Industrial Consumer Agent Industrial Consume
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Customers of Kitex are average and above average people. There is approach as favorable condition for Kitex in the markets and the company channels of distribution. INCENTIVE SCHEMES TO DEALERS In Kitex limited cash discount is the main incentive given to dealers. If a dealer purchase more quantity and at the same time make payment in cash immediately, cash discount is allowed. Apart from these dealers is given quantity discounts also when they
purchase more goods at a time. Some time the dealers get each and quantity discount simultaneously. Main incentives are, Cash discount Quantity discount 15 days credit Alternative ways supply Prompt service Dot delivery Advertisement support This year the company expects 20-30 % increase in sales.
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ORGANIZATION STRUCTURE
Managing director
General Manager
Marketing Manager
Financial Manager
Production manager
Purchase Manager
Administr ation & Personnel Manager
Accounts assistant
Taxation
Clerical Staff
Supervisor Assistant Marketing Manager Assistant Advertising & Sales Manager
Supervisor
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Marketing Representative
Sales Representative
PRODUCT PROFILE
Kitex is engaged in the production of all verities of grey fabric made of 100% cotton, cotton nylon, cotton flax, cotton linen 100% linen, cotton lycra, polyester lycra etc. in various weaves like cambric, sheeting, poplin, mulls, easements, drills, twills, lions, stain, bed fords, stripes dobbys etc. lunges, dhotis, bed spreads etc. for replacement and international trade. The products manufactured by the company are industrial goods and consumer durable goods. 85% of the goods (Grieg cloth) are sold as such to other companies per production units in the textiles and garments. 15% of the greige cloth manufactured by the company is converted to lunges, dhotis, mulls and bed spreads. Various units in Tamilnadu do this conversion. The conversion process includes resizing, mercerized , bleaching, printing, dyeing etc. the products sent for processing will take one and a half month for completing the cloth and are then repacked to make it ready for dispatch. KITEX BAG DIVISION At the dawn of the new millennium, Kitex entered in to the baggage and luggage industry under the brand name SCOOBEE DAY and TRAWELL DAY respectively. Kitex have a wide variety of travel bags, trolley bags, business bags, laptop bags and
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back bags under the name of Trawell day. The factory is engaged in continuous production of bags and a quality of 14 lakhs of bags came out the last year. The fabrics for the bags are mainly imported from China, Taiwan etc. Sample for the design may be brought from outside the country to produce the best quality design that can be matched with other international brands. New designs for the bags are sketched using computers by various experts in the department. The production is carried out on a continuous basis.
After the final stitching of bag each unit is taken separately for strict quality check. Besides that random checking is also made by quality control section. Imported and domestic machineries are used in the factory which can function continuously without any break. Computer programmed machines are also used in the plant which can perform multiple task. The factory runs on one shift from 8.30 a m 6 p m. at the time of season the work start from 8 a m and is continues up to 9 p m. in such cases overtime allowance is given to the workers. There is no stiff competition for Scoobee day bags in the field of school bags. The bags are supplied in Kerala and Tamilnadu and a small share is expected to Middle East. The company is expecting a sale of 15 lakh units of bags in the current financial year and they are also very keen to introduce newer models of their brand to the ultimate customers. SCOOBEE DAY At the dawn of new millennium the new generation was presented with an innovative school bag from Kitex, the main offshoot of Anna Group. Scoobee day bags are compactly designed with unique features that make it durable, colorful, comfortable
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and easy to carry. The bag features anti strain shoulder paddings and acupressure buds specially designed to minimize the strain on the back and shoulders. Scoobee day, from the house of Kitex has a wide range of School Bags which became an instant hit, and scoobee became a close companion to all school going kids. With shoulder strap cushions and Rear padding for added comfort, Scoobee Day bags comes in various colour combinations. Using Ribstop fabric and Leak proof material
Scoobee day bags are attractively priced. The unique features include special pouch for water bottles, Tiffin boxes and even a secret pocket. Features of Scoobee day bags Made from imported Dineer Nylon for durability Shoulder strap cushion to prevent shoulder pain Soft padding and acupressure buds on the rear side to cushion your back Unique stitching using strong nylon threads Quality zip with zip guard to prevent water leaking into the bag Secret pocket to hold chocolate and money 15 different color combinations Special leak proof Tiffin box pouch at attractive price Bags for college and travel purposes also available PRODUCTS IN SCOOBEE DAY

Romeo Gypsy- large and medium Pride Challenge- large and medium 26
Promise- large, medium and small Liberty- large, medium and small Stylo- large, medium and small Twinkle Delight- large, medium and small Hip top- large, medium and small
Hero plus- large, medium and small Nova plus Spark- large, medium and small
TRAWELL DAY BAGS The Renowned Anna- Kitex Group, manufactures of quality consumer products forayed into the travel bag segment with its TrawellDay Bags- wide range of luggage and baggage products. Coming up with latest designs and models, these travel & everyday travel luggage needs are designed to meet the modern trends and requirements of the customers. Made from the imported materials, the bags are available in attractive styles and different colour combinations.
TraWell Day offers, Travel Bags Trolley Bags Business Bags Lap-Top Bags Back- Pack Bags Beauty Case Bags
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CHAPTER-III PROBLEM STATEMENT & RESEARCH OBJECTIVES
PROBLEM STATEMENT
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1. What are the existing mechanisms of supply of SCOOBEE DAY bags? 2. To what extent are dealers satisfied with SCOOBEE DAY bags? 3. What are the factors influencing the dealers to deal in distribution of SCOOBEE DAY bags? 4. Are there any problems faced by dealers and what are the mechanisms for enhancing effectiveness of distribution channel?
RESEARCH OBJECTIVES
1. To examine the existing mechanisms of supply of SCOOBEE DAY bags. 2. To assess the dealers satisfaction level of SCOOBEE DAY bags. 3. To find out the factors influencing the dealers to deal in SCOOBEE DAY bags. 4. To find out the present problems faced by dealers and to identify the mechanism for enhancing effectiveness of distribution channel.
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CHAPTER-IV RESEARCH METHODOLOGY
RESEARCH METHODOLOGY
According to American Marketing Association Marketing Research is the function which links the consumer, customer and public to the marketer through information information used to identify and define marketing opportunities and problems, generate refine and evaluate marketing action, monitor marketing performance and our understanding or marketing as a process.
a) Research Design
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As the study starts with drawing insights in to research problem at the unit level. For this study the research design was confirmed to descriptive research design in order to understand the cause and effect of different variables which are connected with this study.
b) Research method
The source of data -: Both primary and secondary has been collected for this study. Primary data: Primary data are those which are collected afresh and for the first time, and thus happen to be original in character. For this study it has been collected through interview method from 100 respondents with the help of a structured interview method questionnaire. Secondary data: As the explorative stage of the study a detailed survey of literature has been undertaken in order to familiarize with various aspects of distribution channels in marketing. For this purpose company balance sheet, internal record,
department document, marketing document were surveyed. A detailed survey of literature could help the researcher to collect and discover the important variable relevant to the problem .A pilot study has been conducted with help of a draft schedule for evaluating the status quo of Scoobee day bags marketing during 2011. Time frame The time frame for the research is these methods as shown below, Preparation 15days
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Primary data collection Data analysis and editing Drafting the report Preparation for the final version and submission report
30days 15days 15days 15days
Research Instrument Sample size Sample technique Tools
- Questionnaire - 100 - Simple random sampling. - Percentage analysis and graphical solutions.
Analysis tools After the collection of data, from the respondents each sample question are coded and tabulated and then subjected to analysis. The data updated was analysed using the following tools. Percentage (%) The percentage of respondents coming under the same category was found as it helped to know the response of the dealers more clearly. Diagrammatic representation 32
Diagrams are used to represent the tabulated data diagrammatically. This will give a vivid picture about the information collected. Bar diagram The basic form of diagrammatic representation is bar diagram. Bar diagram consist of service of bars of equal width. The bar stands on common base time with equal gap between one bar and other. The bars are constructed in such a way that their length is proportion to the magnitude that they present. Pie diagram In the pie diagram, different segments in a circle represent percentage contribution of various compounds to the total. This chart is very useful because if clearly bring out the relative importance of the various components. Angle is to represent 100 % and the corresponding angles for each component can be found by multiplying 360 degree with percentage of the component.
LIMITATIONS 1. This study does not evaluate the distribution channels in connection with different market segments. 2. The accuracy of data is dependent on the correctness of answers given by the respondents.
3. The survey will be conducted only in Ernakulam district.
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CHAPTER-V
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DATA ANALYSIS AND INTERPRETATION
DATA ANALYSIS AND INTERPRETATION

TABLE NO: 1 FIELD OF DISTRIBUTION
OPINION
NUMBER OF RESPONDENTS
PERCENTAGE
WHOLESALER
50
50%
RETAILER
50
50%
TOTAL
100
100%
CHART NO: 1 35
Inference: It is inferred that 50% of the respondents are wholesalers and 50% of the respondents are retailers.
TABLE NO: 2 EXPERIENCE IN DEALING WITH THE KITEX SCOOBEE DAY BAGS
CATEGORY
PERCENTAGE
BELOW 2 YEARS 2-4 YEARS 4-6 YEARS MORE THAN 6 YEARS TOTAL
12 19 47 22 100
12% 19% 47% 22% 100%
CHART NO: 2
Inference: Majority of the respondents, about 47% have 4-6 years experience with Kitex Scoobee day bags and 22% have more than 6 years of experience, 19% have 2-6 years and 12% have below 2 years of experience.
TABLE NO: 3 PRESENT POPULAR BRAND NAME IN SCHOOL BAGS
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CATEGORY
PERCENTAGE
SCOOBEE DAY
52
52%
DIESEL
26
26%
REEBOK
14
14%
OTHERS
8%
TOTAL
100
100%
CHART NO: 3
Inference: It is inferred that 52% of the respondents have opinion that Scoobee day is the most popular brand; the other two popular brands are Diesel and Reebok with 26% and 14% respectively.
TABLE NO: 4 RANKING OF FACTORS INFLUENCING DEALERS TO DEAL WITH SCOOBEE DAY BAGS
RANK
PRICE
QUALITY AVAILABILITY
BRAND
OTHERS
TOTAL
37
IMAGE
20
43
15
17
100
II
18
28
14
34
100
111
25
14
26
25
10
100
1V
15
30
14
33
100
22
15
10
46
100
TOTAL
100
100
100
100
100
500
TABLE NO: 4-1 WEIGHTS ASSIGNED
RANK
II
III
IV
WEIGHT
25
20
15
10
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TABLE NO: 4-2 WEIGHTED SCORE BRAN ATTRIBUT ES WEIGHTED SCORE 1495 1960 1420 1670 955 7500 PRIC E QUALIT Y AVAILABILIT Y D IMAG E OTHER S TOTA L
CHART NO: 4
Inference: It is inferred that 1960 weight score based on Quality, 1670 weight score based on Brand image, 1495 weight score based on Price, 1420 weight score based on Availability, 470 weight score based on others factors.
TABLE NO: 5 SATISFACTION WITH THE PRODUCT LINE/ VARIETY THAT KITEX PROVIDES
CATEGORY
PERCENTAGE
HIGHLY SATISFIED
23
23%
SATISFIED
68
68%
39
DISATISFIED
7%
HIGHLY DISSATISFIED
2%
TOTAL
100
100%
CHART NO: 5
Inference: It is known that majority of the respondents about 68% are satisfied with product line/variety and 23% were highly satisfied, 7% were dissatisfied and 2% were highly dissatisfied.
TABLE NO: 6 TABLE SHOWING OPINION REGARDING THE CREDIT FACILITY OF KITEX
CATEGORY
PERCENTAGE
VERY GOOD
16
16%
GOOD
23
23%
AVERAGE
46
46%
POOR
15
15%
TOTAL
100 40
100%
CHART NO: 6
Inference: Majority of the dealers about 46% have average opinion regarding the credit facility of Kitex and 23% have good opinion and 16% have very good opinion and 15% have poor opinion regarding the credit facility of Kitex.
TABLE NO: 7 FLEXIBILITY OF CREDIT FACILITY
OPINION
PERCENTAGE
YES NO TOTAL
62 38 100
62% 38% 100%
CHART NO: 7
Inference: It reveals that majority of respondents about 62% said that credit facility is flexible and 38% said that credit facility is not flexible.
TABLE NO: 8 41
ORDER EXECUTED ON TIME FROM THE COMPANY
OPINION
PERCENTAGE
YES
86
86%
NO
14
14%
TOTAL
100
100%
CHART NO: 8
Inference: It is inferred that 86% of the respondents are satisfied with the timely execution of order by Kitex and 14% of respondents are not satisfied.
TABLE NO: 9 FREQUENCY OF VISIT OF KITEX EXECUTIVES
CATEGORY
PERCENTAGE
ALTERNATELY
22
22%
WEEKLY
12
12%
42
FORTNIGHTLY
10
10%
MONTHLY
56
56%
TOTAL
100
100%
CHART NO: 9
Inference: It exhibits that most of the respondents about 56% said that visit of executives is monthly, 22% were alternatively, 12% were weekly and 10% said it is on fortnightly.
TABLE NO: 10 OPINION REGARDING COMMUNICATION BETWEEN KITEX AND DEALERS
CATEGORY
PERCENTAGE
VERY GOOD
26
26%
GOOD
62
62%
AVERAGE
12
12%
POOR
43
TOTAL
100
100%
CHART NO: 10
Inference: It exhibits that most of the respondents about 62% have good opinion regarding communication between Kitex and 26% have very good communication and 12% have average communication.
TABLE NO: 11 RANKING OF FACTORS THAT INFLUENCING DEALERS TO STOCK A PARTICULAR BRAND
RANK
QUALITY
PRODUCT DEMAND
DEALER MARGIN
PRICE
OTHERS
TOTAL
26
37
21
12
100
II
32
26
20
14
100
111
20
21
28
18
13
100
1V
14
11
17
24
34
100
44
14
32
41
100
TOTAL
100
100
100
100
100
500
TABLE NO: 11-1 WEIGHTS ASSIGNED
RANK
II
III
IV
WEIGHT
25
20
15
10
TABLE NO: 11-2 WEIGHTED SCORE ATTRIBUTE S QUALIT Y PRODUC T DEMAN D WEIGHTED SCORE 1770 1895 1585 1250 1000 7500 DEALE R MARGI N PRIC E OTHER S TOTA L
CHART NO: 11
Inference:
45
It is inferred that 1895 weight score based on Product demand, 1770 weight score based on Quality, 1585 weight score based on dealer margin, 1250 weight score based on price, 1000 weight score based on other factors.
TABLE NO: 12 FREQUENCY OF PURCHASE BY DEALERS
CATEGORY
PERCENTAGE
ALTERNATELY
32
32%
WEEKLY
14
14%
FORTNIGHTLY
6%
MONTHLY
48
48%
TOTAL
100
100%
CHART NO: 12
Inference: It exhibits that most of the respondents about 48% were ordered alternatively, 32% were weekly, 14% were fortnightly and 6% were monthly.
TABLE NO: 13 SATISFACTION ABOUT DEALER INCENTIVES 46
OPINION
PERCENTAGE
YES NO TOTAL
57 43 100
57% 43% 100%
CHART NO: 13
Inference: It exhibits that 57% of the respondents are satisfied with the incentives provided by Kitex and 43% of the respondents are not satisfied with the incentives provided by Kitex.
TABLE NO: 14 OPINION ABOUT PRICING OF SCOOBEE DAY BAGS
CATEGORY
PERCENTAGE
COMPARATIVELY HIGH
32
32%
REASONABLE
64
64%
COMPARATIVELY LOW
4%
47
TOTAL
100
100%
CHART NO: 14
Inference: It shown that 64% of the respondents opinion about pricing of Scoobee day bags is reasonable and 32% of the respondents opinion is comparatively high and 4% of the respondents opinion about pricing of Scoobee day bags is comparatively low.
TABLE NO: 15 COMPLAINTS OCCURING IN KITEX SCOOBEE DAY BAGS
CATEGORY
PERCENTAGE
NO COMPLAINTS
62
62%
ZIP COMPLAINTS
20
20%
MATERIAL COMPLAINTS
7%
STITCHING COMPLAINTS
11
11%
TOTAL
100
100%
CHART NO: 15
48
Inference: It is inferred that 62% of the respondents have no complaint about the product Scoobee day bags, 20% have zip complaints, 11% have stitching complains and 7% have material complaints.
TABLE NO: 16 ANY DISSATISFACTION REGARDING SUPPLY OF SCOOBEE DAY BAGS
OPINION
PERCENTAGE
YES
37
37%
NO
63
63%
TOTAL
100
100%
CHART NO: 16
Inference: It exhibits that 63% of the respondents were satisfied with the supply of Scoobee day bags and 37% of the respondents were dissatisfied with the supply of Scoobee day bags.
49
CHAPTER-VI FINDINGS, RECOMMENDATION AND CONCLUSION
FINDINGS
50
Effectiveness of distribution channels of Scoobee day bags 1. The existing distribution of Kitex Scoobee day bags is from organization to
wholesalers, then wholesalers to retailers and finally to customers. They also have direct selling through company outlets.
2. From the survey conducted among dealers, it was found that, majority of the
dealers have 4-6 years of experience with the Kitex Scoobee day bags.
3. Majority of the respondents have the opinion that Scoobee day is the most
popular brand name in the school bag business. Other important brands are Diesel, Reebok etc.
4. It is found that the factors that influence the dealers to stock Scoobee day bag are
quality of product and brand image.

5. It is found that 68% of dealers are satisfied with the product line/variety that
Scoobee day provides.

6. From the study it was found that 46% of the dealers have average opinion
regarding credit facility of Scoobee day bags.

7. 62% of the dealers feel that the credit facility is flexible. 8. 86% of dealers are satisfied with the order executed on time from the company. 9. It is found that 56% dealers explain that the frequency of visit of Kitex
executives is monthly.
10. Analysis shows out of 100% of respondents, 62% of them have good opinion
regarding communication between the dealer and Kitex.

11. It is found that the important factors that influence the dealers to stock a
particular brand are product demand and quality.
12. Majority of the dealers about 48% purchase products monthly.
51
Effectiveness of distribution channels of Scoobee day bags 13. Most of the dealers (57%) are satisfied with the incentives provided by Kitex
limited. The main incentives are cash discount, quantity discount, credit facility, advertisement support etc.
14. Analysis shows, 64% of respondents opinion about pricing of Scoobee day bags
is reasonable.
15. Majority of the respondents about 62% have no complaints about the product
Scoobee day.
16. From the survey it is found that 63% of dealers are satisfied with the current
distribution of Scoobee day bags. And also we found that some dealers are not satisfied because of the direct selling through company outlets with 10% discount.
RECOMMENDATIONS
52
Effectiveness of distribution channels of Scoobee day bags 1. If feasible more profit margins through liberal schemes and incentives could be
adopted to make the dealers push the Kitex items more.

2. If the organization starts a new direct outlet it should make sure that the
companies outlet should not affect the sale of dealers of that location.
3. Much stronger relation could be built with dealers by taking them into confidence
through consistent promotion of the product. 4. The company should frequently advertise the different types of bags launched in every season and should also the exclusive dealers in each location.
5. Sales promotion scheme should be improved by introducing gifts like crayons,
water bottles, name slips etc with bags.

6. The company must make sure that bags are delivered when there is an order
placed by dealer.
7. In order to cater seasonal demand, the product should be launched two months
prior to school and college re-openings.

8. Kitex limited should introduce more Scoobee day bags of different color, size,
styles etc and they should try to come up with much more variety of bags especially for the college students. 9. They should try to make some efficiency in the price fixation of the products.
10. Currently Scoobee day have markets in Kerala and Tamilnadu, so they should
expand the markets to other states also.
CONCLUSION
53
A detailed study of Scoobee day bags has been conducted through a survey among the dealers randomly in Ernakulam District. The project titled is a study on effectiveness of distribution channels of Scoobee day bag: a case study with reference to Kitex limited, in Ernakulam District, in Kerala State. It was an attempt to study the various opinion of dealers of school bags in general and Scoobee day bags in particular. The study helps to make some recommendations to improve the sale of Scoobee day bags and to improve the relationship between the dealers and the company. In respect of the study, I conclude that there is a considerable amount of market share for Scoobee day bags, dealers are impressed with the distribution of bags and they have good opinion about the quality of the bags. I hope that this study will help the company to know their dealers preference of Scoobee day bags and there by helps to adopt suitable strategies to satisfy both the dealers and customers.
REFERENCE
54
Effectiveness of distribution channels of Scoobee day bags 1. Philip Kotler, Gary Armstrong, Prafulla Y Agnihotri, Ehsan Ul Haque (2010)
Principles of Marketing
2. C.R.Kothari, (2009) Research Methodology Methods and Techniques 3. Juliant Dent "Distribution Channels,(2008) Understanding and Managing
Channels to Market" 4. Jonson, R.A. (1971) Marketing Segmentation- a Strategic Management Tool, Marketing Management.
5. Kotler, Philip (2002), Marketing Management; Analysis, Planning and control.
Englewood Cliffs: Prentice Hall of India Private Limited.

6. M.C.Dileep Kumar & K.M.Vineeth,(2006) Marketing Research. 7. McKenna, R(1991), Marketing Is Everything, Harvard Business Review.
8. Richard E. Wilson,(2008) 'A Blueprint for Designing Marketing Channels'

9. Taylor Sims, J.Robert Foster, Arch G.Woodside, Marketing Channels: systems
and strategies.
10. William L Wilkie and Elizabeth S, Moore,(2003) Scholarly Research in
Marketing: Exploring the 4 Eras of Tought Development, Journal of publicy & Marketing.
ANNEXURE
QUSETIONNAIRE
EFFCETIVENESS OF DISTRIBUTION CHANNELS
Please make tick () marks against your choice 55
To the Dealers
Name :-
Address:1. What is your field of distribution? a) Wholesaler c) Agent b) Retailer d) Other
2. How long do you have experience with the Kitex Scoobee day bags?
a) Below 2 years c) 4-6 years
b) 2-4 years d) More than 6 years
3. Which is the present popular brand name in school bag business? a) Scoobee day c) Diesel b) Reebok d) Others
4. Rank the factors that influence you to deal with Scoobee day bags? (1-Very Good, 2-Good, 3-Average, 4-Poor, 5-Very Poor)
a) Price c) Availability e) Others
b) Quality d) Brand image
5. Are you satisfied with the product line/variety that Kitex provides?
a) Highly satisfied c) Dissatisfied
b) Satisfied d) Highly dissatisfied
1. What is your opinion regarding the credit facility of Kitex?
56
a) Very good c) Average 2. Whether the credit facility is flexible? a) Yes
b) Good d) Poor
b) No
3. Are the order executed on the time from Kitex?
a) Yes
b)
No
4. What is the frequency of the visit of Kitex executives?
a) Alternately c) Fortnightly
b) Weekly d) Monthly
5. What is your opinion regarding communication between you and Kitex?
a) Very good c) Average
b) Good d) Poor
6. Rank the factors influence you to stock a particular brand?

(1-Very Good, 2-Good, 3-Average, 4-Poor, 5-Very Poor)
a) Quality c) Dealer margin e) Others 7. What is the frequency of your purchase? a) Alternately c) Fortnightly
b) Product demand d) Price
b) Weekly d) Monthly
8. Does Kitex provide any promotional activities to you, if yes what are they?
57
a) Yes 1) 2) ...
b) No
1. Does the company provide any incentives to you, when you achieve the target? a) Yes b) No
2. Give your opinion about pricing of Scoobee day bags?
a) Comparatively high c) Comparatively low
b) Reasonable
3. What are the main complaints occurring in the product Kitex Scoobee day bags?
a) No complaints c) Material complaints
b) Zip complaints d) Stitching complaints
4. Did you have any type of dissatisfaction regarding the supply of Scoobee day, if
yes then what? a) Yes b) No
1).
2).
5. Please give any suggestion for improvement regarding distribution, brand, etc?
1)..
2).. 58
59

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Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Figure 1-A Customer marketing channel

Figure 1-B Business marketing channel 3

Effectiveness of distribution channels of Scoobee day bags

Business Consumer Channel 1

Business Consumer Channel 2

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

CHAPTER-II INDUSTRIAL PROFILE & COMPANY PROFILE

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

was established to set up an efficient estate that provide

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Managing Director Types of product Name of product Brand name of product

Effectiveness of distribution channels of Scoobee day bags

QUALITY OBJECTIVES 2010-2011 Fabric Division

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Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Television Video Closed circuit Print media Grahalakhmi

Demonstration Advertisement agency Paper advertisement

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Administr ation & Personnel Manager

Supervisor Assistant Marketing Manager Assistant Advertising & Sales Manager

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

CHAPTER-III PROBLEM STATEMENT & RESEARCH OBJECTIVES

Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

CHAPTER-IV RESEARCH METHODOLOGY

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Effectiveness of distribution channels of Scoobee day bags

30days 15days 15days 15days

Research Instrument Sample size Sample technique Tools

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Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

Effectiveness of distribution channels of Scoobee day bags

12% 19% 47% 22% 100%

TABLE NO: 3 PRESENT POPULAR BRAND NAME IN SCHOOL BAGS

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Effectiveness of distribution channels of Scoobee day bags

TABLE NO: 4-1 WEIGHTS ASSIGNED

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Effectiveness of distribution channels of Scoobee day bags

Effectiveness of distribution channels of Scoobee day bags

TABLE NO: 7 FLEXIBILITY OF CREDIT FACILITY