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A PROJECT REPORT ON EFFECTIVENESS OF DISTRIBUTION CHANNEL AT ARIHANT PUMPS PVT. LTD Submitted to
ACKNOWLEDGEMENT
The Degree of MBA contains some part of practical studies in it. This part is very much useful for the student because it gives them chance to know practical side of management. I would like to pay my special thanks to the people who guided me in the company. I want to express my gratitude straight from my heart to them. Secondly we extend our heartily thanks to Mr. Hitesh Thakar who assisted me to do project in H.R. department. Our thanks must also reach to all respondent and lastly I thanks to our Dr.K.K.PATEL who directly or indirectly supported and assisted whenever we needed.
TABLE OF CONTENTS
PAGE NO.
SR NO. PARTICULAR 1 EXECUTIVE SUMMARY 2 GENERAL INFORMATION Company profile Company History Main Product 3 INTRODUCTION OF MARKETING What Is Marketing? Importance Of Marketing Marketing Organization Structure INTRODUCTION OF DISTRIBUTION CHANNEL Distribution Network Distribution Channel Of Aroma RESEARCH METHODOLOGY Research Objective Data Source Research Approach Research Instrument Sampling Plan ANALYSIS AND INTERPRETATION RECOMMENDATIONS CONCLUSION BIBLIOGRAPHY LIMITATION OF RESEARCH
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EXECUTIVE SUMMARY
Companies are required to developed good marketing strategies for their survival and growth. Today the markets are no less than battleground and one has to strive very hard for their survival and growth. But today retailers have occupied very important position in the supply channel of any company. As a result today retailers action and reaction impact have become a matter of study for companies. Arihant is one of the leading companies in the organized sector of manufacturing Centrifugal pumps in India. Arihant has one of the largest supply chain networks in Centrifugal pump industry in India. It has developed good network of Dealers. Dealers of Arihant have played an important role to make Arihant one of the successful companies in the country. It is very important for any company to measure impact of sales promotion tool and effectiveness of channel at the retailers end. This survey has been done to find out effectiveness of distribution channel up to retailers. A closed ended questionnaire was framed to measure the impact of distribution network. The sample size was 20 retailers survey. I have tried to find out impact of distribution network on sales. I have analyzed the entire question and interpreted them to give a conclusive touch to my report. I have included graphs for easy understanding.
GENERAL INFORMATION
REGISTERD OFFFICE
Deesa highway, Palanpur 385001 Dist B.K (guj) Phone (02742) 250520, 21, 22 Fax 91-2742-250523
Board of director
1. K.n.Shah
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COMPNAY AT A GALNCE
NAME: ARIHANT PUMP PVT LTD
EASTABLISH YEAR:1982
OWNER
K N SHAH
REGISTED OFFICE:NEAR LADBI ANALA DEESHA HIGH WAY PALNPUR 385001 DIST B K (GUJ) BANKER :SATATE BANK OF INDIA DENA BANK UTI BANK AUDIETR MANUBHAI & COMPANY AHMEDABAD. PRODUCTION UNIT LOCATION
Marketing Department
Technical staff
Marketing Executive
Marketing Executive
Accounts
Personnel staff
Administration Staff
Office Account
Purchase officer
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Super visor
Work staff
PALANPUR
UNJHA
AHMEDABAD HIGHWAY
A R O M A
D E E S H A R O A D
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WINDING SELECTION
PUMP SELECTION
INSPECTION SELECTION D O M E S T I O
PRODICTION DEP.
P U M P S E C
R&D
WS OH RO K P
SALES DEP.
FINANCE DEPART MENT
STORAGE
HR DEPART MENT
MD CHAMBER
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INTRODUCTION OF MARKETING
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WHAT IS MARKETING?
Marketing is about identifying and meeting human and social needs. One of the shortest good definitions of marketing is Meeting needs profitably. The American marketing association offers definition: Marketing is an organizational function and asset of processes for creating, communicating and delivering value to customers and for managing customers relationship in away that benefit the organization and its stakeholders. The American marketing association offers definition: Marketing is an organizational function and asset of processes for creating, communicating and delivering value to customers and for managing customers relationship in away that benefit the organization and its stakeholders Marketing Management is the leading marketing text because its content and organization consistently reflect changes in marketing theory and practice. The very first edition of Marketing Management, published in 1967, introduced the concept that companies must be customer and market driven. Marketing Management continues to reflect the changes in the marketing discipline over the past forty year. Marketing is every where. Formally or informally, people and organizations engaged in a vast number of activities that we could call marketing. Good marketing has become an increasingly vital ingredient for business success. And marketing profoundly affects our day-to-day lives. It is embedded in everything we do from the clothes we wear.
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MANAGING DIRECTOR
VICE PRESIDENT (MKTG) GENERAL MANAGER MARKETING EXECUTIVE SALES EXECUTIVE SALES SUPERVISOR SALES REPRESENTATIVE
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DISTRIBUTION NETWORK
For every company growth and development distribution channel played a very significance role for them. While selecting appropriate channel of distribution analyzing and understanding the target market is the first step in selecting distribution channel.
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Channel of distribution
Channel of distribution are mainly concerned with the physical distribution of goods and services. They also help enhance promotion and selling and impart marketing controls. It is a distribution network through producers puts his product, in the hand of actual users.
Company
Dealer
Retailer
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Customer
Arihant has adopted different distribution channel for its industrial product. Here the companies directly sell its industrial equipment to any industry or through the help of agent. Agent bring company product and purchase industry closer for bargaining A distribution system is a key external resource. It ranks in importance with key internal resources such as manufacturing, research, engineering and field sales personnel and facilities.
RESEARCH METHODOLOGY
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RESEARCH OBJECTIVE
Our objective behind this survey is to study the effectiveness of the distribution channel of the company and relations with the retailers and how company can improve sales by establishing effective and efficient distribution channel.
1) Primary sources:
Primary (data) sources is the source that organized or collected the data, it may be obtain from: Questionnaire Personal interview Telephone interviews.
2) Secondary sources:
A Secondary (data) sources of secondary data is a source that in turn secured the data from original sources, it may be obtain from: Internet Annual report E- catalogue Browser. I have used primary sources for collecting the data.
RESEARCH APPROACH
Primary data can be collected in five ways: Observation Focus group Survey Behavioral data Experiment
RESEARCH INSTRUMENT
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SAMPLING PLAN
SAMPLE UNIT:
Sampling unit means to which region we taken for survey. I have taken individual survey conducting at palanpur, chappi, & kanodar in Banaskanta district.
SAMPLE SIZE:
The survey was conducted on 20 respondents.
SAMPLING PROCEDURE:
Sample procedure technique is conceptually the easiest to understand but quite difficult to implement in a realistic marketing research project. I have selected simple random sampling method for my survey as per the demand of the company
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INTERPRETATION:
I have visited the retailers of Aroma Pumps Pvt Ltd, so it was essential to know with Aroma company product which other companys product they keep in their show-room. In the list of other company, KSB & Kirloskar are leading with 24% & 19% respectively and only 5% of product they keep for other company.
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2) Have you done business with any other company in the past? Particular YES NO TOTAL No of respondents 13 7 20 (%) 99 1 100
INTERPRETATION:
As you can see in the above chart, when I asked about the past business with other company, then out out of 20 retailers 7 say no it means that either they are new in the field or they are doing business continuously with Aroma Company, while 13 retailers have done business with other companies in the past.
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Particular
(%) 25 15 30 5 25 100
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INTERPRETATION:
We can observe from the above graph that retailers choose the company for the business because of brand, Quality and customer demand. While some have also selected the company for high profit margin but unbelievable things is that few of the retailer have selected the company because of advertisements. 4) According to you out of following which company Centrifugal pumps demand is more?
Particular
No of (%) respondents KSB 2 10% AROMA 10 50% KIRLOSKAR 7 35% OTHER 1 5% TOTAL 20 100
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INTERPRETATION:
We clearly see that the demand of Aroma & Kirloskar is more, that is 50% & 35%. While other pumps share the remaining portion it means 10% says that KSB demand is more.
Particular
(%) 25 60 10 5 100
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INTERPRETATION:
As in the fourth question we got the result that the demand of Aroma and Aroma is more, according to the findings it can say that quality and price are the major factor which affects the demand of the particular product. We also observe that price also play the role in the demand of the product.
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INTERPRETATION:
Monthly sales of retailers show that almost half of the retailers sales units are between 50-100 and unfortunately 10 units of the retailers have sales
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Particular
(%) 40 20 10 30 100
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INTERPRETATION:
From the above chart we can see that 40% of retailers keep stock between 1-100 units, While 30% of retailers keep more than 300units and 10% of them keep stock between 200-300 units.
(%) 35 15 10 40 100
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INTERPRETATION:
From the above diagram it can say that more then 40% retailers do not get any facilities from the company. While 35% get free sample facility and other 10% and 15% get free delivery and transport facilities.
9) Are you satisfied with these facilities of company? Particular YES NO TOTAL No of respondents 8 4 12 (%) 67 33 100
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INTERPRETATION:
When asked retailers about that are they satisfied with the facilities they got from the company, the result are very unimpressive 67% retailers are happy while remaining 33% are unhappy with giving facilities, it means that thy want more facilities from the company.
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INTERPRETATION:
When things come on such a interesting subject like advertisement respondents seem very enthusiastic to give answer. Firstly we see that 15% of the retailers believes that company gives advertisement by the newspaper and 5% of retailers says that by Television they can knew it and
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11) Do you think that are there any more advertisements are required? Particular YES NO TOTAL No of respondents 9 11 20 (%) 45 55 100
INTERPRETATION:
From the above graph we conclude that out of the 20 retailers 9 say that they required more advertisement while 11 say that they do not need, why they demand more this is the only way that company can make customer aware about their product.
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12) Do you give advertisement to improve sales of the product? Particular YES NO TOTAL No of respondents 6 14 20 (%) 30 70 100
INTERPRETATION:
As we have seen that when they have asked about to improve the sales, about 30% of the retailers gives positive response while 70% says No to give any advertisement.
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13) What is the level of quality of the product? Particular No of respondents HIGH 16 AVERAGE 4 LOW 0 TOTAL 20 (%) 80 20 0 100
INTERPRETATION:
As per my research that is about the level of quality of the product 80% replied that quality is very high and that of 20% replied that quality is average and no one has replied that quality is low and they also add that customer dont know much about the quality this is their personal view.
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No of respondents 18 2 20
(%) 90 10 100
INTERPRETATION:
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Particular 1-5 days 5-10 days 10-20 days Morethan-20 days TOTAL
No of respondents 2 3 5 10 20
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INTERPRETATION:
As the chart describes company gives more than 20 days credit period to its 50% of retailers while 25% are getting credit period of 10 to 20 days and remaining 25% get the time of less than 10 days.
Particular
(%) 40 35 25 0 100
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INTERPRETATION:
Communication between retailers and company is one of the most important aspects of the business so when we asked them about the media company use to communicate with them the out of 20, 40% respondent replied that company communicate through telephone, while 25% replied that company personally communicate with them as per our view it is good for any company that they keep their personal attention in the business and company does well in that area statistic proves that.
17) Do you think that customer is satisfied with quality of the product?
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NO 0%
YES NO
YES 100%
INTERPRETATION:
According to the retailers 100% of their customers are satisfy with the quality of the product. This figure shows the how high-class quality Product Company produces.
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INTERPRETATION:
Well as per our view this question is very important because customers are the final authority and findings, this question clears the view of customers so according to the retailers out of 20 respondents 4 replied that they consider price as main feature when they buy the product 7 consider the brand and also quality, attractiveness and personal relation with retailers.
INTERPRETATION:
For all the company profit is the main aim , when I asked them by which way company can improve their sales, most of the retailer replied that they give more advertisements about their product. So that customer will be aware of the product and they prefer for buying their product. While some replied that improve the quality of the product but as we have seen in the graph most of the retailers prefer the brand because of the quality of the product. So we can say that there is no fault in the quality of the product.
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RECOMMENDATIONS
As per the demand of most retailers and Customers Company should start television advertisements. Common people do not know much about the different features of the Centrifugal pump so company should do something to make the common people aware about the different features of the products. Arihant Pumps Pvt Ltd should try to involve in public ceremony, social and cultural events to increase sales and by this way they can advertise and sell their products to consumer.
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CONCLUSION
Many practical things I have learned from the company. I have seen and Conclude that the overall performance of the company is really good .By Surveying retailers I have also conclude that one of the performances of The company is its one of the best Distribution network. They have really good top management with the back up of middle management and the personnel of the company. They are really dominating other companies in the particular field with qualitative production and advanced technology.
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BIBLIOGRAPHY
FROM WEBSITE:
www.arihant Pvt ltd .com
LIMITATION OF RESEARCH
Though the study was conducted in a blinded fashion, i.e. the respondent were not told about the company doing the study, however it is representing the view of retailers about all companies The sample size is only 20 retailers, which is not very large.
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Questionnaire
NAME : ADDRESS : CONTACT NO:
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[ ] KSB [ ] Aroma
[ ] Kirloskar [ ] Other
2]. Have you done business with any other company in the past? [ ] Yes [ ] No
If Yes Please specify ________________________. 3]. Why you have selected this company for business? [ ] Brand [ ] Advertisements [ ] High profit margin [ ] Customers demand [ ] Quality [ ] other
4] According to you who company centrifugal pumps demand is more? [ ] KSB [ ] Kirloskar [ ] Aroma [ ] Others
5]. Why the demand of this particular product is more? [ ] Price [ ] Attractiveness [ ] Quality [ ] Other
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If no then what more you want from company? ________________________________ 11]. which media company prefers for advertisements? [ ] Television [ ] Flags [ ] Banners [ ] Wall painting [ ] Hoardings [ ] Others [ ] News paper [ ] Pamphlets
12]. Do you think that are there any more advertisements is required? [ ] Yes [ ] No
If yes then which type _____________ 13]. Do you give any advertisements to improve sales of the product? [ ] Yes [ ] No
14]. what is the level of quality of the product? [ ] High [ ] Average [ ] Low
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18]. Do you think that customers are satisfied with the quality of the Products? [ ] Yes [ ] No
19]. According to you, which features customers consider when he/she Purchases your product? [ ] Price [ ] Advertisement [ ] Attractiveness [ ] Brand [ ] Other ____________________ [ ] Quality [ ] Personal relation
THANK YOU
Signature:
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