You are on page 1of 86

MARKETING MIX A VIEW

INTRODUCTION:
The combination of marketing methods and devices to reach a particular market segment is known as marketing mix. Marketing mix is the set of marketing tools that used by a firm to pursue it marketing objectives in the target markets There are literally dozens of marketing mix tools, Mr. Mc Carthy popularized a four factor classification of these tools called the 4Ps.

4Ps OF MARKETING MIX: Product Price Place


Promotion

These 4Ps are closely interrelated and interdependent on each other.

THE MARKETING MIX VARIABLES PRODUCT VARIABLES:1. Product line and range. 2. Design, Quality, Features, Models, Style, Size, Appearance and Warranty of products. 3. Packaging type, materials and label. 4. Branding and trade mark. 5. Merchandising.

6. Service, pre-sale and after-sale. 7. New products. 8. New markets.

PRICE VARIABLES:1. Pricing policies, levels of prices, levels of margins, discounts and rebates.

2. Pricing methods according to quality of products. 3. Terms of deliver payment credit terms and installment facilities.
4. Resale price maintenance.

PLACE VARIABLES:1. Channels of distribution, types of intermediaries, channel policy and design. 2. Location of outlets channel remuneration and dealer principle relation. 3. Physical distribution transportation, warehousing, inventory levels, order processing.

PROMOTION VARIABLES:1. Personal selling, objectives, level of effort quality of sales force, cost level, level of promotion. 2. Advertising, media, budgets, allocations, and programmers. 3. Sales promotional efforts display, contests, trade promotions. 4. Publicity and public relations.

PRODUCT MIX:
The most basic marketing mix tool is product, which stands for the firms tangible offer to the market, including the product quality, design, features, branding and packaging. Product is an article or service process utility and want satisfying power.

Product is an important component of marketing mix. It play a vital role in the activities of organization. It is through which organizations can achieve in goods customer satisfaction.

PRICE MIX:

The decisions relating to basic price, discounts allowances terms of credit, pricing strategie and policies of the product are taken by the marketer under price mix. The mount of money charged for a product (or) service (or) the sum of the values that consumers exchange for the benefit or using the product or service. The price mix finally concerns itself if the price offered, trade terms and discounts credit are given to the customers. Its price should be commensurate with the perceived value of the offer or buyers will turn to competitors in choosing their products.

PLACE MIX:
Place, another key marketing mix tool, stands for the various activities the company undertakes to make the product accessible and available to target customers. The company must identity, recruit, and link various intermediaries and marketing facilitators. So that its products and services are efficiently supplied to the target market. It must understand the various types of retailers wholesalers and physical-distribution firms and how they make their decisions. Distribution involves delivery of the product to the consumers at their door steps. It includes channels of distribution, transportation, warehousing and inventory control. Channels of distribution consist of the set of people and forms involved in the transfer title to a product move from a producer to ultimate consumer or business user.

PROMOTION MIX:
Promotion is an activity that communicates the merits of the product and persuade customer target to buy it. Promotion is one of the major important variable in marketing mix and its communicating the change attitudes and behavior of consumer. It covers advertising, personnel selling, publicity, sales promotion and non-price competitive tactics. Note that the 4Ps represents the sellers view of the marketing tools available for influencing buyers.

From a buyer point of view, each marketing tool is designed to deliver a customer benefit. Robert Lauterborn suggested that the 4Ps correspond to the customers 4Cs.

4Ps Product Price Place Promotion

4Cs Customer needs and wants Cost of the customer Convenience Communication

OBJECTIVES OF THE STUDY


The project work has been taken up with the following objectives:

To study the product mix of the company.

To study the pricing policies and methods of DPM Ltd., To study the distribution channels of the company. To know the promotional tools of DPM ltd.
To identify the problem, if any, in the marketing aspects of the

company and to provide suggestions for improvement.

NEED FOR THE STUDY

Industrialization results in increase on number of mills producing capacities and thus a competitive situation are prevailing in the industry in such a order to sustain and to market their products at a profit the company should have marketing system Any firm should periodically study the needs and wants of its customers and should then make necessary modifications fonts products basing on the prices of competitors ; income levels of target groups etc.,Promotion tolls involves complex issues in strategy and tactics and needs sophisticated knowledge and techniques in handling them effectively.A firm without proper physical distribution cannot supply the products to their customers in time. Hence an attempt is made to study the marketing management of paper industry with special reference to M/S DELTA PAPER MILLS LIMITED , BHIMAVARAM.

SCOPE OF THE STUDY

The scope limited to the operations of DPM.

The given marketing data and last five years sales & purchases data.

The study has been conducted to understand the position of industry

and various functional areas of the company & their marketing operations . The study mainly focus on their marketing mix of the company. In marketing mix we can know various products which are existed in the market of the company. By increasing more geographical area the company can increase sales. By expanding the rate of marketing mix we can make profits.

METHODOLOGY OF THE STUDY


Methodology is a very systematic procedure of collecting information in order to analyse a phenomenon. The collection of information has been done by:

1. Primary data

2. Secondary

Primary Data:

Primary data is gathered for the first time(first hand information ) by the researcher. The primary data are collected through personal observation, discussion with the management and senior sales manager of the company. It is original data .As for the study, primary data is gathered through a series of detailed discussions with various managers & staff of the company and continuous interaction with the customers during the survey helped to arrive at certain conclusions about the product and its prospects. The primary data was collected in a planned manner, with the help of a questionnaire from the customers.

Secondary:
The secondary data is the data collected by others, for purposes other than the solution at hand. As for the study the secondary data was collected from company reports,reference books,magazines,newspapes,trade and government publications and various books and records from and marketing department As for the study completely based on secondary data .The data which was extracted from company annual reports such as balance sheets, pil a/c,inventory reports etc.

SAMPLING PLAN: a. Population: Who - The paper dealers.

Where - In the state of A.P When - March 2010


9

b)

b. S Sampling Design:
i) Type of Sample ii) Sample Size iii)

Non-probabilistic sampling. A total sample of 100 were taken. The field of study was fixed to Bhimavaram.

Field of Study

RESEARCH INSTRUMENT - QUESTIONNAIRE:


A questionnaire is a formal list of questions to be answered in the survey. Questionnaire may be administered by mail, telephone or personal interview. A Structured and undistinguished type of questionnaire was prepared which consisted of both open ended and closed- ended questions.

RESEARCH APPROACH - SURVEY:


Survey is the most widely used and well-known method of primary data collection. It is an extremely flexible and facilitates understanding or enables prediction of some aspects ofr behavior of population being surveyed. Survey research is the systematic gathering of data from respondents through questionnaire.
FIELD WORK:

The questionnaire was used as an interview schedule to be filled through personal interviews of the respondents. During the data collection process, problems like respondents bias etc., were encountered i.e., the respondents preference / loyalty to a particular brand had an influence upon his response. However, such errors were rectified by

10

asking mutually complimentary questions and eliminating contradictory answers.

LIMITATIONS OF THE STUDY

As the time span of the study is only eight weeks gathering the total

information is not possible . Much information regarding product positioning, brand image and details, exports of the paper to international market has not been given by the company.
There is less scope of gathering the confidential data as we are project

students.
11

Studies based on the information given by the departmental heads and of the

company. The collection and compilation of the data require good human skills in the mean time of the process error may occur. The dealers has not observed consumer behavior because of direct marketing by dealers.

CHAPTERIZED LIST
CHAPTER 1: Contains the information about INTRODUCTION,OBJECTIVES OF THE STUDY, SCOPE OF THE STUDY, METHODOLOGY,LIMITATIONS CHAPTER 2: Deals with the information about INDUSTRY PROFILE

12

CHAPTER 3: Contains the information about ORGANISATION PROFILE CHAPTER 4: Deals with the information about THEORITICAL FRAME WORK CHAPTER 5: Contains the information about DATA ANALYSIS & INTERPRETATION CHAPTER 6: Deals with the information about, FINDINGS & SUGGESTIONS, CONCLUSION, QUESTIONNAIRE and BIBLIOGRAPHY

PROFILE OF THE PAPER INDUSTRY


A Countrys civilization mostly depends upon its paper consumption. First we have to know, in brief about the introduction and establishment of paper in the world and its introduction in India. Again it is essential to know about the development and progress of paper industry in our country as well as in our state. The word paper is adopted from the WATER PLANT called PAPYRUS. Which is used to grow around Nile River, Egypt? The Egyptians used PAPYRUS Plant after cutting and drying it. Since 3000 B.C. It was said that T.JAMLUM CHAINE had prepared paper at the bank of the MULBERRY TREE in 105 A.D.
13

In 751 A.D. the ARBAS imported the knowledge of paper making with the help of CHINESE. Later the art of paper making was spreaded to Europe and Central Countries of the world. It was highly popularized by the BOWDDARK especially by the DOSKO MONK throughout the world. The PAPYRUS is a quote plant which grow in abundance in a plant were woven and pressed into a sheet be used as writing material by the ancient Egyptians the evidence of PAPYRUS having been used as writing material can be found. Even now in same of the European libraries are preserving old manuscripts. In ancient days for writing purpose BOJA PATRA (Bark of Trees), TALA PATRA (Leaves of Palm), TAMARA PATRA (Copper Plates)

and LOHA PATRA etc., were used time paned as and the need for writing surface increased this was eventually given rise to through of having an alternative source for writing surface which is convenient of a easily available. The first paper mill in the world was started in 1336 A.D. in Germany. Later paper mills were started in 1586 in Switzerland and Holland. Later it spread all over the world. Firstly in 1789 chlorine was used for bleaching of the pulp, in 1799 Robert Nicholas the French scientist, who designed the first paper machine to the world. In 1809 John Dickinson patented a cylinder Machine which resulted in better with speed of learning and research work. Later on papermaking has becomes a seed industry at every inch and fairish of the world.
14

INDIAN PAPER INDUSTRY:


Unlike Iron and Steel, Textile and Sugar Industries the paper making industry did not exist in ancient India. For writing purposes Bojapatra (bank of trees) and Talpatra (leaves of Palm) were used some of our oldest manuscripts preserved up to the present time were written on these materials. The modern art papermaking came to India quite late and perhaps the foundations of the modern paper Industry were laid about 1870. But the first successful factory. The Titaghar Paper Mills was established in 881 in Bengal and since the Industry has been growing and spreading in different parts of the Country. Industries which use coarse, heavy and weight-losing materials like wood and timber where in a considerable loss of weight takes place in the first stage may usually seek different locations in different stages. The first stages of these industries are generally located near the sources of supply of heavy materials were these material are changed into half finished goods almost into ubiquitous materials. The subsequent stages are located near the consumer markets where half finished goods are given final shape by additional application of labour. In the care of paper industry it is possible to prepare the wood pulp near the forests and then turn into paper in industrial and popular centers. Canada and the Baltick countries of Europe wish their extensive soft wood forests of the Northern Hemisphere and cheap hydro electric power are the homes of the most important wood pulp and paper industries of the world. Wood pulp is manufactured just on the out skirts of the forests and is supplied to the paper making centers inside their own country and is exported to distant lands like Japan and India. Soft words of temperate like spruce and pine used in Canada and the Baltic Countries for paper making are the most suitable raw material for the paper Industry. But such soft timbers are found in India wish up in the Himalayas and are situated in inaccessible regions with the appearance of the Chinese menace on our Northern Borders. Our policy with regard to the development of the

15

Himalayan Regions is under going a radial change. Efforts are being made to develop these regions and to carry modern transport up the border of Tibet. The developments are likely to make the soft timbers of the Himalayas available to the paper industry of the country.

Perhaps in the beginning the Titaghar mills used cotton rage a first class material for making the best varieties of paper. But subsequently the Indian paper mills relied mainly on sabai grass available in Uttar Pradesh and Nepal. For interiors yellow varieties of paper even the Munj grass was used. Imported wood pulp, rages, and waste paper were some the other material used besides coat for power and chemicals for bleaching and other processes. Between 1925 and 1937, the processes of preparing the paper pulp from bamboo were developed fully and the paper industry began to rely mostly on Bamboo as the main and basic fibrous material for papermaking. Nearly 2.38 tones of Bamboo in a v\average is required for making a ton of paper and it accounts for nearly 60% of the Indian raw materials used in the paper Industry. The consumption of Bamboo, sabai grass and softwood was estimated in 1954 at 300000, 65000 and 250000 tones respectively. In Eastern India (including East Pakistan) goods supplies of bamboo were available in the Chittagung tracts of Bengal and in Catcher and sylhet divisions of Assam. Most of the set forests are now parts of Eastern Pakistan and Bangladesh, Sambalpur, Barpahar, Angul, Puri and Ganajam divisions of Orissa and Bihar are the main sources of obtaining now materials for the paper mills of Northern and Eastern India. The advantage of bamboo as a raw material in comparison with soft wood is that its cutting rotation on an average of four years as against sixty years for most species of wood. F the Bamboo forests are managed on scientific lines adequate supplies should be available for meeting a substantial part of the raw material requirements of the Industry. In parts of South India like Kerala and Mysore a Bamboo is found in adequate quantities in the forests. Good varieties of needs

16

suitable for the manufactures of paper are found in Travancore and in the Tinnevellery district of Madras. The possibilities of using begasses obtainable from sugar mills and quite bright. The paperboard Industry uses straw, grass and Bagasses as its raw materials for the news print Industry the supplies of suitable timber may have to be augmented by the use of other materials. The availability of sufficient supplies of bagasse and the economics of its substitution by other fuels in sugar factories, thee extent to which confers in the Himalaya region or eucalyptus and wattle trees in Nilagiri areas could be utilized for the manufacture of news print are some of the factors likely to influence the development of the news print industry in the near future the Nepal mills are using the With regards to fuel and power the demand for coal is generally placed at about 3.5 tones per ton of finished paper but according to the manufactures on an average nearly 4.1 tones of coal per ton of paper is being consumed. Coal consumption is some of the mills using Hydel power are comparatively lower. But the power requirements of the Industry on the whole fare mostly met from power plants attached to the mills themselves. It is, however envisaged that a substantial amount of electric power will be drawn from the public undertaking in the coming years. Besides celluloses materials like bamboo and grass, the Industry is an important consumer of chemicals also, the principal chemical required are time, caustic soda, soda ash, chlorine, sulphate, rosin and clay. Most of the paper mills obtain their requirements of chemicals from the manufacturers. But there are some factories which produce their own requirements of a few chemicals especially caustic soda and are also obtained from out side countries on the whole the position with regard to the suppliers of fibrous materials, power and chemicals it satisfactory although the strain on the sup0pliers of fibrous materials like Bamboo appears to be increasing requiring careful and planned expansion of these resources.

17

A brief discussion of the natural resources shows that the beginning when sabi and other greases were the principal raw materials and coal the main source of power. Neither Bengal not Uttar Pradesh enjoyed and distinct advantage, if the mills Bengal could enjoy the advantage of cheaper of cheaper supplies of local coal, the Industry in Uttar Pradesh possessed the advantage of grass. But as only a little over 2 tones of raw material and nearly 4 tones coal were required for every ton of finished paper, the Industry in Bengal was better placed even after paying freight on the supplies of grass obtained form long distance. Besides this the advantage of the paper market at Calcutta was there. But with the introduction of Bamboos a superiors raw material the Industry in Bengal was placed as constantly advantageous position. Thus supplies of bamboo and coal near at hand and a big market for paper. Bengal continued to enjoy a position of great advantage for the development of paper industry, Bihar, Orissa, U.P., and the Punjab came next. After the development of hydroelectric power the position of other bamboo producing regions in Kerala, Mysore and Hyderabad was also considerably improved. The paper industry using Bamboo as raw material was given the benefit of protective duties in 1925 and since then the progress of industry has been fairly satisfactory. The development of hydroelectric power in many regions of the country has considerably help the inter-regional dispersion of the industry. The influence of the advantage of raw material, power and markets are very clearly visible in the regional distribution of the industry between 1925 and 1948. In the Bombay region the industry used rage or imported wood pulp and was thus handicapped. In the Madras region also the resource position was not helpful for the development of the industry.

PRODUCTION: (Forecast of Raw Material Requirements) Year Demand Forest Bagasse 1991 31.61 12.35 3.60
18

Straw Paper Total Waste 2.25 2.77 20.96

Gap between demand and Production 10.65

2000 2005 2010 2015

41.12 50.45 52.97 79.81

12.35 12.35 12.35 12.35

6.00 7.20 8.40 8.40

2.00 2.50 2.50 2.50

4.75 5.57 8.29 10.00

25.60 27.62 31.53 33.25

15.52 22.83 31.44 46.56

(Source: The Hindu Survey of Indian Industries)

PAPER INDUSTRY IN INDIA: S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 State Andhra Pradesh Assam Bihar Gujarat Hariyana Karnataka Jammu & Kashmir Hymachal Pradesh Kerala Madya Pradesh Maharastra Nagaland Orissa Punjab Rajasthan Tamila Nadu Uttar Pradesh West Bengal No. of Units 18 4 8 45 17 15 1 13 3 16 52 1 7 17 9 21 58 21
19

Installed Capacity 4.106 2.208 0.915 2.743 1.496 1.933 0.033 0.094 0.393 1.813 4.677 0.03 2.136 1.378 0.433 2.051 3.12 2.386

Production in Metric Tones 2.173 1.084 0.024 1.67 1.11 1.77 0.009 0.213 0.093 0.0991 3.555 0.218 1.207 0.82 0.064 1616 2.092 0.858

19 20

Chandighar Pondichery

1 1

0.03 0.096

0.016 0.032

(Source: Indian Economy)

CAPACITY:
There are 325 mills with an installed capacity aggregating 3.30 million TPA. The Government had encouraged the setting up small mills based on nonconventional raw materials. Agro residue and waste paper based mills account for even half of the industrys installed capacity. Besides some 400 old handmade paper units are producing paper using cotton rag, jute wastes and cottons inters. These units are under the overall control of khadi and village industries commission. Their estimated output is put at 4000 p.a. valued at Rs.7.50 crore in 1989-90. But owing to closure of a number of mills in all the three major categories the industrys effective capacity had dropped to 25.19 lakhs TPA. Indian production of paper and board was about 2.4 million tones in 19394 as against a capacity of 3.5 million tones. The industry thus operated at a capacity of 69% production is expected to rise by another 5% in 1994-95 and growth should continue at about that level for the rest of the 1990s.

CONSUMPTION OF PAPER IN INDIA:


The capacity of consumption of papers in India as it an abysmally low level of about 3 Kgs at present. This is one of the lowest in India where the

20

advantage is 18 Kgs per head. One the assumption of paper mills move up to 5 Kg 2000 A.D

ECONOMICS OF PAPER IN INDIA: Country G.N.P. Literacy Enrollment in Secondary School to relevant graph 1440 99 55 1130 99 97 9890 99 90 7900 90 84 4550 100 104 2050 76 32 580 44 48 480 62 22 290 66 79 240 36 27 Per Capita Paper Consumption

Switzerland U.S.A. Japan U.K. Russia Brazil Egypt Indonesia China Indonesia

168 289 153 151 32 26 10 3 6 3

(Source: Journal on Indian Pulp and Paper) EMPLOYMENT:


Paper Industry employees directly 23-30 persons per 1000 tones of annual capacity and indirectly a vast labour force in forest and other related areas. The employment potential residues are 50-75 per 1000 tones of annual capacity.

21

PAPER CONTROL ORDER:


The paper control 1974 adversely affected the efforts of developing new varieties of papers and board and distributed the production of certain established varieties. Under this order mills were required to manufacture 30% at their total output in the form of write printing paper and sell the same to allots at concession rate of Rs.2,750/- per tones which is non-remunerative. However due to poor off take by the respective consumers, the industry had to carry hugestock of this variety of paper accounting 57% of total output. Following the representation made by the industry, the Government permitted open market swales and this concession was available up to the end of 1976. but in November 1976 the government has asked to set up immediately the open market sales as it felt that the market conditions improved the industry circles estimates that an excess production of 40,000 tones will be available even in the case of other varieties of the paper take off was poor and price dipped by Rs.500/- to Rs.600/- tones an average.

Under the paper control order 1979 promulgated with printing paper put also brought its distribution under control. Hindustan Paper Corporation (HPC) which would arrange for the supply of paper to bulk consumers would handle the distribution papers, publishers and printers. The latest control on the paper industry followed sharp increase in the price of common varieties of writing and printing paper. There were reports of trade changing premier over and above the listed price of mot common varieties of paper even the write found to be bold in the open markets at states much higher than suffocated. In fact in 1979 there were report that the write printing paper was being sold in the open markets as around Rs.6,000 per tone. Another development arising out of the control was that because of the large price gap between the controlled varieties and the uncontrolled varieties. The paper manufactures had the temptation of
22

circumventing the stipulated 30% production of while printing paper, Doubts had after been expressed whether paper mills were really manufacturing write papers t the extent of 30% of their capacity.

PAPER INDUSTRY IN THE GLOBAL PERSPECTIVE:


Indias per capital consumption per annum of paper is a meager 3 Kg as against 334 Kg of the US, 224 Kg Japan and 134 Kg of Taiwan. China has an impressive 12 Kg., the Philippines 8.5 Kg, Thailand 17 Kg, Malaysia 31 Kg, Korea 80 Kg., and Australia 150 Kg is the other countries in the Asia pacific region which are significantly a decade ahead in consumption. Now else in the world, much potential and need exist for the rapid growth of the pulp and paper industry during the next ten years as in Asia. The demand and output can easily double in the next decade buttressed by burning economics and abundant raw materials. A closer look into the international trade figures reveals that international trade in this sector is heavily dominated by the North-Atlantic nations and the South is of little or no importance here. In concrete terms, more than 60% of the trade of the pulp wood more than 50% of the trade of paper and paper board more than 80 percent of the trade of newsprint and more than 60 percent of the trade of printing and wiring papers controlled by 4 to 5 nations on either side of the transaction low per capital consumption of the South is the underlying reason rather than their self-sufficiency. Europe and North America virtually dominate the globe as for as production of paper and allied commodities are concerned.

23

INDIA PICKING UP:


Indias economy continued its good performance in 1995 growing by 4.7% in the 1995 fiscal year (April 1995 March 1996), according to the Economist Egypt country, still enjoy the growth generated by the former Governments liberalization policies that began in the early 1990. Those reform policies introduced far-reaching changes in the external trade and payments region, industrial policy, foreign investment policy, the task system and the policy frame work for the financial sector and for capital markets. The regulation of industrial activity ahs been largely eliminated and state subsides for public enterprise is being progressively removed. The changes have become a given in Indian politics and the change of Government resulting from the March 1996 election is not expected to after that reality. The effect has been to encourage investment in Industry from both domestic and foreign companies. The paper industry in particular has been encouraged to invest in new equipment and technology in order to supply the expected growth in demand and to meet foreign competition head on. Indias paper and board production grew by 10% to an estimated 3.2 million tones during 1995. Some of the growth was generated by renewed investment in the countrys most modern mills. However, the majority of it is due to incremental increases in production at the countrys numerous small mills. Paper and board demand grew at an average 6.3% to 3.5% million tones from 1990-95 largely as a result of the governments economic conditions remain favorable. It was increased later the following years. Fiscal Year 2001-02 considerable investment in new capacities, in India across all grades. That investment trend continued into fiscal 2002-2003 and

24

should help the industry meet much of the expected rise in demand. India has also begun the process of liberalizing its tariff regime and this will eventually open up the market to much greater foreign competition. Much of the new capacity built in 2001-2002 and 2002-2003 have been installed with the threat of increasing foreign competition in mind. Estimating production by grade in India is a process hampered by the size and scope of its producers. There are at least 400 active paper mills in India the vast majority of which have capacity of less than 20,000 TPA. Many of these smaller mills do not supply set grades of paper and produce anything from newsprint to tissue according from newsprint to tissue according to local demand. To further complicate matters, many of them produce under or over their stated capacities. `Most of this small mills a use agricultural waste and recycled paper, as they are a main fiber. Many of them operate seasonally and produce paper from whatever materials are locally available. Having said that, there are sufficient numbers of mills that produce reliable statistics to make a fair estimate of production. Production totaled about 3.1 million tones is 2003 (Table). The sharp rise in packaging paper and board production can be discounted. It is probably due to under-reporting of production in 2002 and to increase capacity utilization at many smaller mills. The showing the second largest percentage and growth of production in 2003 war news print. Production at the recognized newsprint mills wars over 6, 00,000 tones in 2003. This figures does not include production of newsprint as swing capacity, some industry figures have estimated this swing production at a further 2,00,000 tones .

25

FORECAST BASED RAW MATERIALS NEED FOR THE PAPER INDUSTRY

(Million Tones)

PRODUCTION PROJECTION Paper and Paper Board Newsprint Projection forest raw material requirement Availability of Forest Raw Materials Short fall in Forest Raw Materials

1994 1.57 0.43 5.27 3.20 2.06

2003 2.38 0.72 8.15 3.21 4.94

INDIA: P&B PRODUCTION, TRADE & CONSUMPTION

Production News Print Printings and Writings packaging P & B Other P & B Total 2005 302 1175 1075 100 2652 2006 402 1205 1330 120 3057

Year 2007 315 1290 1385 125 3115

2008 422 1314 1412 136 3284

2009 320 1360 1452 139 3271

26

Imports News Print Printings and Writings packaging P & B Other P & B Total 2005 241 9 16 3 269 2006 292 10 16 4 322

Year 2007 2008 2009 283 302 318 12 15 15 17 19 17 4 5 5 316 341 355

Exports News Print Printings and Writings packaging P & B Other P & B Total Consumption News Print Printings and Writings packaging P & B Other P & B 2005 603 1181 1090 103 2006 693 1237 1334 123 2005 0 3 1 0 4 2006 1 37 11 1 50

Year 2007 2008 2009 3 6 10 48 42 53 18 15 19 4 3 6 73 66 88 2008 748 1321 1485 148 2009 825 1468 1592 151

Year 2007 702 1285 1420 133

(Source: Journal on Indian Pulp & paper Industries)

Production of other paper in India is largely made up of tissue and cigarette paper. Local production accounted for about half of the countrys estimated demand of 1, 55,000 tones in 2009. Indias Imports of wastepaper are growing at a much faster rate than its pulp imports. Wastepaper imports stood at 3,50,000 tones in 2009 and look set to rise substantially in the future, partly because of government and industry encouragement.

27

LIST OF PAPER MILLS IN ANDHRA PRADESH (Tones per Annum) S.No. 1 2 3 4 5 6 7 8 9 Name The Andhra Pradesh Paper Mills Ltd. ITC Bhadrachalam Paper Board The Siripur Paper Mills Ltd. The Rayalaseema Paper Mills Ltd. Costal Paper Mills Ltd. The Costal Chemical Ltd. Sri Lakshmi Saraswathi Paper Ltd. A.P.Bagase Production Private Ltd. Circar Paper Mills Ltd.
28

Capacity 153,500 83,923 71,100 42,000 18,000 16,500 15,500 10,000 10,000

10 11 12 13 14 15 16 17 18 19 20 21

Guardian Paper Mills Ltd. Nagarjuna Paper Mills Ltd. Telangana Paper Mills Ltd. Delta paper Mills Ltd. Adivasi Paper Ltd. Suryachandra Paper Mills Ltd. Vamsadara Paper Mills Ltd. Penna Paper Mills Ltd. Sandeep Paper Mills Ltd. Shree Paper Mills Charminar Paper Mills Jyothi Cellose Ltd.

10,000 10,000 10,000 9,000 7,500 6,000 7,500 4,950 4,200 4,000 3,000 2,700

(Source: Journal on Indian Pulp & Paper)

CHAPTER -3 PROFILE OF DELTA PAPER MILLS LIMITED BRIEF HISTORY OF THE ORGANISATION
PROFILE:

Name of the Firm Year of Incorporation


DAY

: The Delta Paper Mills Ltd.,

: 1975 TOTAL PRODUCTION PER : 80 To 100 tons per day Raw Material Supply Investment and Sources TOTAL WORKERS Organization Chart BANKS : : : : Paddy and Begass Public and Private Deposits 800 Chairman, Board of Directors, Managing Director,Executive Director. : I.C.I.C.I along with I.D.B.I.,J.F.C.I.,L.L.C, and U.T.L

29

PLANT AREA

: 58 acres

MARKETING ORGANATION

: MD.,DIRECTOR FINANCE.,SM.,MARKETING OF MANAGER.,DEPUTY MANAGER.,ASSISTANT MANAGER

of

DPM LTD INITIAL CAPITAL OF : Rs.3,30,70,000. DPM Mission

Raw Material Chemicals

Chemicals Value

: Mission of the Delta Paper Mills Ltd., is to be powerful force in the world economy in Paper Technology through productivity and Excellence A shared vision which shared responsibility lies with all shareholders. : Caustic soda & chlorine paint. : Lime, Sodium Sulphate, Rosin, Chlorine, Sulfuric Acid, and Talcum : Employees empowerment for Commitment to Total Quality Team efforts and increased productivity, ethical Management practices for extreme, Credibility life and public image. 2) To want to reach the mission of the company. 3) Every employee of the organization should take own mission to give excellent assistance to the firm. : 3 Machines are used for producing paper.

Capacity

30

Delta Paper Mills Limited is located at Vendra village near Bhimavaram of West Godavari District in Andhra Pradesh . In the year 1947 an idea was generated in the mind of late Sri. Bhupati Raju to set up a paper mill in order to bring reputation to his native place Vendra Village and also create employment to the unemployed youth . With this objective former member of parliament late Sri. Bhupati Raju Vijay Kumar Raju prometed Delta Paper Mills Limited . Delta Paper Mills Limited was introduced in May 1975 , was promoted in joint venture by Development Corporation Limited to set up a 30 tons per day paddy straw based small mill at Vendra near Bhimavaram , West Godavari District.

This mill was further expanded in the year 1986 with a capacity of 45 tons per day with two machines and also expanded the area of 22 acres to 58 acres . Now the total capacity of plants is 80 to 100 tons per day . the mill produces cultural paper such as writing and printing and other few varieties of paper.
31

32

33

34

35

Delta Paper Mills are being managed by a 7 member Board of directors at the top level chief executive is the managing director , who is assisted by the executive directors. Dr.G.ganga Raju, Chairman Sri .G.V.K.ranga Raju, MD Sri.G.Rama Raju, ED Sri.G.V.Narasimha Raju, Director Smt.Bh.K.K.Kasturi, Director Sri. A. Narasimha Rao, Director The structure is divided mainly to two parts, first is engineering (Production, Paper Mills, etc) and the second is the Financial and Administrative

PRODUCT PROFILE:
The company is an approved supplier to coating plants, corrugated box manufactures textile tubes and comes manufactures battery jacket tubes manufactures foil laminators label printers, computer stationary manufactures multi color printing houses copier units as well as other users in the paper converting and printing industries.

36

MANUFACTURING:
There are 3 paper machines having manufacturing capacity ranging from 80 to 100 tons per day. The company has adequate infrastructure viz. Water treatment plant boiler, house and turbine house to provide uninterruptedly the required utilities like water, steam and power. The soda recovery sections recover the cooking chemicals in the spent liquor from the pulp mill.

. To face anticipated difficult days, steps were taken to achieve raw materials sufficiency and sustained availability in future through:

Altering technological parameters to utilize more hardwood. Conservation of natural resources and healthier environment. Massive plantations on marginal and degraded form lands. Create former and eco friendly environment. .

HUMAN RESOURCES DEVELOPMENT:


The company has two dedicated training halls in the premises and conducts regular training programs on occupational health and safety in addition to employee development and need-based training for all levels of employees

MARKETING:
Marketing of paper is done through a nation wide dealer network of 30 dealers located in 22 cities or towns. Sales operations are carried out through branch offices

37

situated at Bangalore, Chennai, Delhi, Kolkata and Mumbai to cater to the South, North, East and West zone requirements. 60% of sale is to trade channel Distributors, retailers, jobbers etc., and 40% of sale is through dealers to direct consumers. Overseas sales operations are carried out through International agents or representatives located in India. Merchant exports only to countries not represented by such agents.

38

ORGANISATION CHART OF DPM CHAIR MAN BOARD of DIRECTORS EXECUTIVE DIRECTORS

GM (Production)

VICE PRESIDENT

VICE PRESIDENT (FINANCE)

VICE PRESIDENT (COMMERCIAL)

VICE PRESIDENT
(Personnel& Administration)

VICE PRESIDENT
(works)

GENERAL MANAGER (WORKS)

MISSION STATEMENT OF THE DELTA PAPER MILL LIMITED


Dr. GENRAL MANAGER (Production) Dr. GENRAL MANAGER
(Product development & Consumer Services)

Dr.GENERAL MANAGER

39

MISSION STATEMENT

High level of productivity and excellence; Continual improvement in the quality of Human resources,

Products, services and technology.


Customer satisfaction; Concern for occupational health and safety. And Commitment to environment management.

VISION STATEMENT OF THE DELTA PAPER MILLS LIMITED


40

VISSION STATEMENT:
DPM by providing competitive value must emerge as the preferred choices for repeat purchased by an increasing number of satisfied customers, we should continue to be environmentally friendly and practice good corporate citizenship. We will follow a result-oriented style of Management, encourage Meritology and continuously improve on all parameters of operators there by producing a profit that improves the ratio of profit before tax (PBT) to turn over year on year.

PAPER MAKING PROCESS IN BRIEF:


In Delta Paper Mills Ltd. the Sulphate process of pulping is adopted the chief raw material of Bamboo and hard Wood are chipped to one-inch size and fed to large digested with a solution of Sodium Hydroxide for a period of 3 hours. The noncellulose materials are dissolved by the solution forming black liquor. At present the pulp from digested is fed to vibrating knitter and then washed above large washing

41

drums in a cooker current operation. The washed pulp is diluted and screen to remove small-uncooked fiber bundles and sand at. In high-density towers. It is proposed to replace the above old and obsolete two existing parallel system with a single new state of art technology and efficient system comprising of primary knitters and hot stock screening and chemical washed. The washed liquor containing dissolved organic and inorganic is concentrated in multiple effect evaporator this is further concentrated on direct contact evaporator with the heat available in flue gas before finding in the recovery boiler. The stream generated and then for the process equipment. The inorganic coming in the form of molten smelt is dissolved in the weak hit liquor from the cauterizing sector for nuking cooking solution. The lime generated in the process is burnt in the rotary lime link to produce the burnt lime for reuse. The pulp so obtained is bleached in a number of stages. Bleaching removes the coloring matter imparts brightness to the pulp. Unbleached pulp as such as utilized in the manufacturing various packing & wrapping paper. Bleached pulp is utilized for the manufacture of various writing-printing and is paper. During the first stage of the bleaching process. The pulp is directly with chlorine and chlorine Dioxide residence of washed and again bleached in the subsequent stages with chlorine dioxide with inter reeducate washing between the RAW WHITE LIQUOR stages. The washed pulp is again thicket and stored in stock chests. Chemical such as Rosin and Alum are added to the pulp to develop the property of resistance to the penetration of writing and printing inks, other chemicals are added to develop strength in the paper. The pulp at a very low consistence is formed into a sheet on end less screen mesh made of phosphor bronze/plastic wire the sheet is calendared to import
SCREEING CHIPPER smooth finish in the surface of both sides. A calendarWASHING a number of chilled DIGESTER AND consists of HOUSE

MATERIAL

HOUSE iron rolls with good surface through which the sheet is passed between the nips formed

by the rolls. The paper is realer or cut into sheets depending on the requirement for the U customer. Stream is required in boilers. N B FLOW DIAGRAM OF PAPER MAKING PEOCESS L BLEACHING D EVAPORATIONS P U L P STEAM STOCK TO PREPERATI ON 42

HYPO

RECOVERY BOILERS POWER BLOCK

PAPER M/C

CAUSTICIZING

LIME KILN
CONVERTIN AND FINISHING
LIME

DPM
AUSTRALIA BENIN BANLADESH EGYPT

PAPER

IS

EXPORTED

TO

43

GHANA IRAN KENYA MALYSIA MALDIVES MYANMAR MALTA NEWZEALAND NIGERIA OMAN SRI LANKA SEYCHELLES SINGAPORE SUDAN TANZANIA UAE UK YEMAN GERMANY

4.A. MARKETING MIX OF DELTA PAPER MILLS LTD. DEFINITIONS:


44

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others. The American Marketing Association defined Marketing as The process of planning and executing conception, pricing promotion and distribution of idea, goods and services to create exchanges that satisfy individual and organizational objectives. Marketing is concerned with the decision that relate to business customers, competitors and promotion agencies. Marketing focuses on how customers make choices and how companies should design products, services and programs to satisfy the customer needs. Marketing is the human activity directed at satisfying needs and wants through exchange process. Philip Kotler Marketing is the business process by which products are matched with markets and through which transfers of ownership are affected. Cundiff & Still Marketing is identifying and satisfying the needs and wants of consumers by providing a market offering to fulfill those needs and wants through exchange process, profitable. As per Institute of Marketing U.K, Marketing is the management function which organizes and directs all those activities involved in assessing and converting customer purchasing power into effective demand for a specific product or service in moving the product of service to the final consumer or user so as to achieve the profit target or other objectives set by a company.

45

The definition of marketing rests on the following core concepts needs, wants and demands, products, services and ideas, values and satisfaction, exchange and transaction relationships and networks, Markets and prospects. These concepts are illustrated as follows:

Needs / Wants Markets and Prospects

Products value

Cost Markets

Exchange and demands Relationship

Marketing mix is the term used to describe all the marketing elements and resources that will help the company to achieve profits and sales as desired.

Marketing mix has the following elements:


Product Price Place Promotion

PRODUCT:According to sohwat A Product is something a firm makes thst will satisfy a personal want, fill a commercial or a business need and includes all the peripherals factors that contribute to consumers satisfaction. These factors my include reputation of the manufacturers, the warranty.

46

It includes the requirements regarding composition, quality, height and the number of different types of paper and paper products that have to be offered. It also includes the customers service and technical support needed.

VARIETIES OF PAPERS:Paper can be classified broadly into four groups: Cultural paper Industrial paper Board paper
Specialty paper

The other category are news print is a special type of paper which is used for printing the newspapers and magazine. It is height but strong and requires different types of production process are used to manufacture paper. There are number of paper varieties, which scatter to the wide range of user needs and preferences. There are different paper varieties also available like range, weight and sizes.

Cultural Paper:The total paper demand for cultural paper is around 46%. Industrial Paper:The total paper demand for industrial paper is around 48%. Speciality Paper:The total paper demand for speciality paper is around 6% PAPER PRODUCTS MANUFACTURED BY DPM LTD:The paper mills of DPM Ltd consists of
47

Writing paper and printing paper Packing, wrapping paper Speciality paper Export paper Some of the product ranges of DPM Ltd is kraft, manilaposters, maplitho, cover paper, ramwave hornito, covers and color board etcdifferent kraft, maplitho, printing for Indian tools loaded posters for level brotera, yellow paper for ammonia printing and others. Paper Classification and Uses: According to the use of paper it may be broadly classified into two categories. 1. The products, which are used for writing and printing, wrapping, packaging. 2. The products, which are comparatively thicker and stiffer for the purpose of packing, decorating etc. this paper called as board. WRITING PAPER: Writing paper is a general trade term used to indicate all papers intended to be written upon. The quality requirements for such kind of papers are hard size, smooth finish and low transparency. Example: - Cream wove, Cream laid, Azure laid etc. Use:- For such tools as exercise books, account books, Loose-leaf binders, Registers, Letterheads and Office forms PRINTING PAPER: It is a comprehensive tem used by printers for the innumerable varieties of paper suitability for many process of production. In general a printing paper should be a good shade, migrate size and opaque. Examples: - Maplitho, Offset, Parchment, Photocopier etc. Features End Users
48

Packaging

Good glaze on one side for attractive printing of labels and Note books and magazine cover jackets and printing publicity/ Paper Name MG POSTER MG DELUXE RIBBED KRAFT MG YELLOW POSTER MG BLUE POSTER MG WHITE POSTER MG PINK POSTER (MANILLA) MG POSTER PAPER(PP) MG POSTER PAPER (WHITE) MG POSTER PAPER (NS) MG POSTER PAPER (PINK) MG POSTER PAPER (BLUE) MG POSTER PAPER (YELLOW) MG POSTER PAPER (GREEN) SS MAPLITHO (VQ)

Labels Printing; Note books, Text books and magazines Cover Jackets; Posters and Hand Bills Reel & Sheet

GSM Range 50-90 48-90 60 50 5-90 58-90 105-140 100-175 100-175 100-175 100-175 100-175 100-175 60-175

Deckle 200 200 200 200 200 200 320 320 320 320 320 320 320 312

MF MG MG MG MG MG MG MG MG MG MG MG MG MG MG

PAPER PRODUCTS OF DPMILLS LTD.: WRAPPING PAPER: The basic requirement of wrapping paper as that it should be able to fulfill its task of wrapping, to contain and protect. Therefore essential requirement of this paper is its strength. Example:- Poster, Tea yellow, Manila etc.
49

PACKAGING PAPER: This category of paper includes Kraft Paper, Linear, media etc. The basic purpose of this paper is to pack various commodities.

Features End Users Good glaze on one side for attractive Labels Printing; Note printing of labels and Note books and books, Text books and magazine cover jackets and printing magazines Cover publicity/ material(Posters) advertisement Jackets; Posters and Hand Bills

Packaging

Reel & Sheet

Paper Name MG POSTER MG DELUXE RIBBED KRAFT (NS) MG KRAFT (COFFEE BROWN) MG DELUXE RIBBED KRAFT

GSM Range 50-90 48-90

Deckle 200 200

MF MG MG

48-90

200

MG

50

MG YELLOW POSTER MG BLUE POSTER MG WHITE POSTER MG PINK POSTER (MANILLA) MG RIBBED POSTER (WHITE) MG W.RIBBED POSTER (SW) MG POSTER PAPER (WHITE) MG POSTER PAPER (PINK) MG POSTER PAPER (BLUE) MG POSTER PAPER (YELLOW) MG BOARD (NS) MG PINK PULP BOARD MG BLUE PULP BOARD MG YELLOW PULP BOARD MG GREEN PULP BOARD

60 50 5-90 58-90 55 55 100-175 100-175 100-175 100-175 190-230 190-230 190-230 190-230 190-230

200 200 200 200 200 200 320 320 320 320 320 320 320 320 320

MG MG MG MG MG MG MG MG MG MG MG MG MG MG MG

PAPER USAGE DESCRIPTION:

Usage Description Label Printing Notebooks & Textbooks

51

Envelopes Pigment Coating Printing & Packaging Beedi Labels & Packing Blade Wrapper Greeting & wedding Cards Photo Copying Ink Jet Printing Computer Stationery Diazo Coating Picture Posters Paper Cups Textile Tubes and Cones Corrugated Box Liner Battery Jackets Soap Stiffener Account / Ledger Books Annual Reports / Journals / Novels Foil Lamination.

Packing:Paper is packed in order to protect it from damages. The product is first covered by a wrapper, later it is covered with hazing cloth and stitched. The exporting paper is additionally covered with polythin cover and they are kept in wooden boxes. The company will go for intermediary packing later the dealers again pack it.

52

PRICE:The amount of money charged for a product or service the sum of the values that consumers exchange for the benefit or using the product or service. Pricing Policy:The company fixes the price through the market demand Pricing policy generally followed by DPM is cost plus pricing policy. That is certain percentage is added to the cost of goods sold, in order to get the final price. In India the pulp based paper mills are mainly divided into south and north paper mills. In North the mills are mostly Government undertakes so the Government regulates the prices. Prices of paper industry are fluctuating because of increase in cost of raw material and the government control over the raw material. Some paper mills are using waste paper as the raw material. DPM generally gives three types discounts to customers: Trade discount Cash discount Quality discount

Trade Discount: Trade discounts are enjoyed by the dealers and bulk purchasers. These discounts are already incurred in selling price of the paper. Cash Discounts: Those who pay the bills in time are given cash discounts.
53

Following table shows the cash discounts of DPM : Payment Period 10 days 15 days 30 days Discount % 3 % 2 % Free of interest

After 30 days they charge the interest at the rate of :


Payment of 31 to 45 days, the interest at 22% per annum is charged

from the date of invoice


Payment of 46 days and above, the interest at 26% per annum is

charged from the date of invoice.

Quality Discount: Quality discounts are given to buyers who buy large quantities. The following are the quality discounts provided by DPM LTD.

Quality Upto 20 MT 21MT to 50 MT 51MT to 100MT 101MT to above

Discount --Rs 500/Rs 1000/Rs 1500/-

54

PHYSICAL DISTRIBUTION: Channels of distribution consists of the set of people and forms involved in the transfer of title when a product moves from producer to ultimate consumer or business user Distribution includes company activities that make the product available to customer targets. Channels of distribution includes the first producer and the final customer for the product in its present form as well as any middle men such as wholesaler and retailers.

Physical Distribution in DPM ltd: There is a lot of importance for physical distribution at DPM because it provides place and time utility to the paper. In other words company makes paper available to the dealer t the right time i.e., to maximize the mills chance to sell the product. The company aims at making the paper available at the right time and at the right place. It includes inventory and inventory control, transportation to be used, and the method of distribution employed. Place includes company activities that make the product available to the customer. The factor that influences the buyers its sped delivery after the receipt of the order. Thereby customer relations are cordial. Even the wholesaler and other middlemen relations re satisfactory. DPM has dealings with dealers. Here in this mills dealer is the main intermediary to reach the consumers. As such, it has two levels of channels of distribution. It is shown as follows:
Manufacturers

Dealer

Retailer

Consumer

Order will be placed through dealers in case of ordinary

55

customers. Industrial customers will place orders directly. Manufacturers Selection of dealers: While selecting dealers Delta Paper mills considers the following aspects Financial strength of dealer Business turnover of dealer Reputation of dealer Co-operativeness with management Business experience Social status Monitoring and Controlling: The following tools and techniques are adopted for monitoring and control in the dealers in marketing development of DPM. Sales quota Correspondence
Report and returns

Dealer

Consumer .

Sales quotas are mostly related to sales forecasting for sales budgets. It is a quantitative objective assigned by dealer. The marketing department fixes an amount for each dealer to make depending on the sales forecast. Regarding dealership of the mill the dealer must deposit 10 lakhs. It is security deposit for protection incase of bad debts.

Credit facility: It extends credit to twice the security deposit paid by the dealer.

56

PROMOTION: Promotion is an activity that communicate the merits of the product and persuade customer target to buy it. Promotion is one of the major variables in the marketing mix. Communicating information between seller and buyer to change attitudes and behavior of consumer. All buyers are more sophisticated and the competition has became more intense to selling is so complex. The various promotion mix elements are designed for the purpose of achieving this end. It is also referred to as Communication mix. The major tools of Marketing Communication Mix. Advertising Direct Marketing Sales Promotion Public Relations and Publicity Personal Selling The promotional tool should co-ordinate with other elements in the marketing Mix to reach the target market and achieve its marketing objectives. The main objectives of the promotion is to make demand inelastic when the price increase and elastic when price goes up Advertising: any paid form of non-personal presentation and promotion of ideas, goods and services by an identified sponsor.

57

Advertising can be used to built up a long-term image for a product on one hand and to quick sales on the other hand. Advertising is an efficient way to reach number of geographical territories. Direct Marketing: DPM sells its products directly to the dealers. It is having about 130 dealers, through out India and exporting to foreign up to 28 countries. Sales promotion: Sales Promotion is done through incentives, discounts, for the purchases of paper and making prompt payment. It will make to pay the credit discounts. All these helpful to increases sales.

Sales Promotion is paid by the sponsor and frequently involves temporary incentives to encourage the company sales force. Sales Promotion is wide spectrum of activities, such as interest, trade shown, is store display, rebates samples, premium, discounts and coupons. Public Relations and Publicity: Public Relation encompasses a wide variety of communication efforts to contribute to generally favourable attitudes and options an organization and its product. Unlike advertising and Personal selling, it does not include specific sales manager. The targets may be customers, stock holders, the Government agencies or special interest group.

Personal Selling: It is the direct presentation of a product to the prospective customers by a representative of the organization. personal selling takes place face to face or over the telephone and it may be direct to an intermediary of a final consumer.

58

Across all business more money is spent as personal selling than any other form of promotion.

MARKETING STRATEGIES OF D.P. MILLS LTD.


According to the prevailing demand competition in the market, the Delta Paper Mills Limited follows different types of strategies. Many verities of paper were made with hundreds of colors. Some varieties have great demand in the market.

59

PRODUCT DIFFERENTATION: Delta Paper Mills Ltd design their product with meaningful different to distinguish the companys offer from that of the competitors. The company through product quality, service, personnel and image makes this differentiation. The D.P.M. Ltd installed coating plant, new bleaching plant, recovery boiler to achieve energy saving and better product mix. In Delta Paper Mills Ltd a team of over 40 qualified people will monitor the quality of inputs, on going process and finished paper on a continuous basis. Testing the on going products for defect or deviation and information product department for corrective action. Rejection of interior and substandard quality. Modification of output and maintaining history of parent rolls/sheet lots for further analysis of products, complaints, comparison etc., Inspection of joints Inspection of finishers performance and keeping records for the same. The D.P.M. Ltd produces only superior quality products. That is why they are charging high price. If the dealers parameters are not equalized with that of the product, the company reproduces these products. They earned more of their premium quality and enable them to charge a premium price, the company is benefiting from repeating purchasing, consumer loyalty and positive than for business units producing low quality. The company chooses a quality level appropriate to target market and the positions of the competitors. The company has modernized technology that is for continuously testing of product standards, the company recognizes the important of these processes and constantly interacts with international technology forums, to be acquainted with the latest developments.

60

The technology at the D.P. Mills Ltd., is environmentally clean. Its ecological concern has manifested itself in adoption technology, which cleans the affluences before they are let out. SERVICE DIFFERENTIATION: The D.P. Mills Ltd is giving a lot of importance to physical distribution because it provides place and time utility to the paper. In other words company makes paper available to the dealer at the right time that is time that is to maximize the companys chance to sell the product. Dispatches will be help up if payments are not made with in the due date. The D.P. Mills Ltd. is taking active steps to meet the dealers specification. If the specifications are not met, the dealer has to complaint within 60 days of the dispatch. The company has good packaging section. There are three types of packing in the company viz., 1. Special Packing 2. Seasonal Packing 3. Ordinary Packing The packaging done in the company is intermediate packaging to prevent moisture and fungus. Again the dealer will pack the product in a style. The company will not offer any product warranty of maintenance contract. There are virtually unlimited numbers of specific service and benefits that the company offers to differentiate themselves from their competitors.

POSITIONING STRATEGY: Delta Paper Mills Ltd is following mainly two types of positioning strategies.
61

1. Product category positioning and 2. Quality / Price positioning The company is producing superior quality products with a premium price. The positioning strategies design the companys offer and image, so that the target market understand and appreciates what the company stands for in relation to its competitors. EXPORT PERFORMANCE OF THE COMPANY: The Company D.P.M. Ltd. export its products to number of countries are give below: DPM PAPER IS EXPORTED TO: AUSTRALIA BENIN BANLADESH EGYPT GHANA IRAN KENYA MALYSIA MALDIVES MYANMAR MALTA NEWZEALAND NIGERIA OMAN SRI LANKA

62

SEYCHELLES

1. Purchasing of the products of Delta Paper Mill. S.NO 1. 2. 3. 4. Purchasing of the products from no. of years Below 5 Years 5-10 Years 10-15 Years Above 15 Years
63

No. of respondents 15 35 30 20

% of respondents 15% 35% 30% 20%

Graphical Representation:
Purchasing of products of Delta Paper Mill
Above 15 Years 20% Below 5 Years 15%

Below 5 Years 5-10 Years 10-15 Years Above 15 Years

5-10 Years 35% 10-15 Years 30%

INTERPRETATION: From the above information we can say that most of the customers are purchasing the products of Delta Paper Mill from 5-10 years and second is from 10-15 years and the third is above 15 years. From this we can say that the Delta Paper Mill is carrying out the old customers very carefully. 2. Opinion on present Marketing Mix of Delta Paper Mill. S.NO 1. 2. 3. Opinion of dealers Good Average Below Average No. of respondents 65 25 10 % of respondents 65% 25% 10%

Graphical Representation:

64

Present Marketing Mix of Delta Paper Mill


70

65

60

50

40

30

25

20

10
10

Good

Average

Below Average

INTERPRETATION: From the above information we can say that most of the dealers said that present product line of Delta Paper Mill is good for 65 and 25 of dealers said that it is average and 10% of dealers said that it is below average. From this we can observe that present product line of Delta Paper Mill is very good. 3. Delta Paper Mill following the Marketing Mix consistency. S.NO 1. 2. 3. Opinion of dealers Following Consistence Changing No. of respondents 40 33 27 % of respondents 40% 33% 27%

Graphical Representation:

65

Delta Paper Mill following the Marketing Mix consistency


45 40

40 33 27

35

30

25

20

15

10 5

Following

Consistence

Changing

INTERPRETATION: From the above information we can say that most of the dealers i.e. 40% said that Delta Paper Mill is following the Marketing mix consistency and 33% of dealers said that the product mix is consistence and 27% of dealers said that it is changing. From this we can say that Delta Paper Mill is following consistency. 4. Factors influencing on Delta Paper Mill marketing mix S.NO 1. 2. 3. Opinion of dealers Market demand Quality of production Cost of production No. of respondents 46 26 28 % of respondents 46 26 28

Graphical Representation:

66

Factors influencing on Delta Paper Mill marketing mix


50 45 40 35 30 25 20 15 10 5 0

46

No. of respondents

26

28

Market demand

Quality of production

Cost of production

INTERPRETATION: From the above information we can say that market demand influences the Delta Paper Mill mostly i.e. 46% and then next is 28% on cost of production and 26% is on quality of production. From this we can say that market demand is influencing on Delta Paper Mill marketing mix. 5. The product width has change with the competitors S.NO 1. 2. Opinion of dealers Yes No No. of respondents 20 80 % of respondents 20% 80%

Graphical Representation:

67

The product width has change with the competitors


90

80

80

70

60

50

40

30

20

20

10 0

Yes

Opinion of dealers

No

INTERPRETATION: From the above information we can say that 20% of dealers said that product width has change with the competitors and 80% of dealers said that product width of Delta Paper Mill does not change with the competitors. From this we can say that 80% of dealers said that product width of Delta Paper Mill does not change with the competitors

6. Expecting any improvement in Delta Paper Mill Marketing Mix width. S.NO 1. 2. Opinion of dealers Yes No No. of respondents 65 35 % of Respondents 65% 35%

Graphical Representation:

68

70

Expecting any improvement in Delta Paper Mill Marketimg Mix width


65

60

50

40

35

30

20

10

Yes

Opinion of dealers

No

INTERPRETATION: From the above information we can say that 65% of dealers said that they are expecting the improvement in marketing mix width of Delta Paper Mill and 35% of dealers said that they are not expecting the improvement in marketing mix width of Delta Paper Mill. From this we can observe that dealers are expecting the improvement the marketing mix width of Delta Paper Mill. 7. The Marketing Mix of Delta Paper Mill is changing yearly S.NO 1. 2. 3. 4. Opinion of dealers Market conditions Quality assurance Competitors Orders received No. of respondents 24 23 35 18 % of respondents 24% 23% 35% 18%

Graphical Representation:

69

The marketing mix of Delta Paper Mill is changing yearly


40

35
35 30

25

24

23 18

20

15

10 5

Market conditions

Quality assurance

Opinion of dealers

Competitors

Orders received

INTERPRETATION: From the above information it is clear that marketing mix of Delta Paper Mill is changing monthly/yearly because the top most priority is given to competitors is about is 35% follows market conditions about 24% , quality assurance is for 23% and the least is for orders received is 18%. From this we can observe that marketing mix of Delta Paper Mill is changing yearly due to competitors.

8. The basis for new product development done by the Delta Paper Mill. S.NO 1. 2. 3. 4. Opinion of dealers Market demand Improved Technology Competitors Others No. of respondents 45 30 13 12 % of respondents 45% 30% 13% 12%

Graphical Representation:

70

The basis for new product development done by the DPM


50

45

45

40

35

30

30

25

20

15

13

12

10

Competitors

Improved Technology Market demand

Others

INTERPRETATION: From the above table it reveals that the Delta Paper Mill develops new product according to market demand. Because it is given top priority to market demand of about 45% and follows the improved technology to about 30% and then goes for competitors of about 13% and others activities for 12%. From this we can observe that DPM is developing new product according to market demand.

71

9. The type of consumers available for Delta Paper Mill. S.NO 1. 2. 3. 4. Opinion of dealers Notebook Manufacturer Magazine publishers Xerox centers Printers No. of respondents 34 10 36 20 % of respondents 34% 10% 36% 20%

Graphical Representation: The type of consumers available for Delta Paper Mill.
40

34
35 30

36

25

20
20

15

10
10 5

Notebook Manufacturer Magazine publishers Xerox centers

Printers

INTERPRETATION: From the above table we observe that the Delta Paper Mill is consisting of Xerox centers consumers and Note book manufacturers are more available and then printers and magazine publishers consumers are very less. From this we say that Delta Paper Mill is consisting of Xerox centers consumers and Note book manufacturers are more available. 10. The opinion on Delta Paper Mill price value.

72

S.NO 1. 2. 3.

Opinion of Customers Satisfactory Better Unsatisfied

No. of respondents 65 25 10

% of respondents 65% 25% 10%

Graphical Representation: The opinion on Delta Paper Mill Price Value


70

65

60

50

40

30

25

20

10
10 0

Satisfactory

Better

Unsatisfied

INTERPRETATION: From the above table we observe that most No. of customers is satisfied with the price value of Delta Paper Mill. 25% of dealers are saying that the products are better and 10% of dealers are not satisfied with the prie value of Delta Paper Mill. From this we can observe that the No. of customers is satisfying with the products of Delta Paper Mill. 11. The pricing policies you recommend for the Delta Paper Mill. S.NO Opinion of dealers No. of respondents % of respondents

73

1. 2. 3. 4.

Credit Facilities Installment purchase Discounts Rebates

56 22 12 10

56% 22% 12% 10%

Graphical Representation: The pricing policies you recommend for the DPM
60

56

50

40

30

22
20

12
10

10

Credit Facilities

Installment purchase

Discounts

Rebates

INTERPRETATION: From the above table we observe that the most No. dealers are recommending for credit facilities is about 56% and then for installment purchases is for 222% and then for discounts is recommending for 12% and rebates is for 10%. From this we can observe that most of the dealers are recommending for credit facilities in Delta Paper Mill.

12. Influencing factors while selecting the companies. Table:1 Factors No.of Dealers,Whole salers,Printers (No.of responents) Percentage %

74

Financial Strength Quality Business Experience Growth & Profitability Reputation Total

20 40 10 10 20 100

20% 40% 10% 10% 20% 100%

INFLUENCING FACTORS

INTERPRETATION:
From the above table we observe that for nearly 40% of dealers, wholesalers, printers are influencing quality. Reputation is the next most influence for financial strength and reputation.And next preference to growh & profitability Delta paper mill ltd is known for its quality of paper and has gained customer satisfaction. Quality is the factor , which made the produts of the company different from others.

75

13. Product mix of DPM is changing yearly Influencing factors Market condition Quality assurance Competitors Order received Priority 30 20 10 40 Percentage% 30% 20% 10% 40%

76

INTERPRETATION: From the above table it is clear that product mix of DPM is changing monthly /yearly because the top most priority is given to receive 40% , follows market conditions 30% quality assurance 20% and the least priority is given to competitors which is 10%

14. Services received by the dealers.

CREDIT PERIOD Rate Minimum Average Maximum No.of whole salers 35 50 15 Percentage % 35% 50% 15%

77

D L E YO P O U T E IV R F R D C S

R te a M im m in u Ae g v ra e M xim m a u

INTERPRETATION: At present major portion of the dealers are satisfied with the ceidit period given by the company. Only 35% of the dealers are epecting to increase the credit period the company in order to promote the credit faciliies to their respetive customers. 15. Services received by the Whole salers . DELIVERY PERIOD: RATE LOW AVERAGE PROMPT NO of WHOLESALERS 70 10 30 PERCENTAGE % 70% 10% 30%

78

RATE LOW AVERAGE PROMPT

INTERPRETATION: 35% of the dealers are started that delivery of the products by the ompany is low . The others 50% of wholesalers are have given that delivery by the ompany is average . For remaining 15% the delivery of products is prompt. The reason for the slow delivery may be due to lack of co-ordinate between the mills and the market section at Secunderabad FINDINGS

In Delta Paper Mills the customers who are mostly purchasing the products are age between 5-10 years and 10-15 years. In Delta Paper Mills the marketing mix rate is 65%. In Delta Paper Mills the marketing mix consistency is 40% . The factors influencing marketing mix in Delta Paper Mills is market demand.

79

In Delta Paper Mills the product with among competitors is 20%. Expecting Delta Paper Mills marketing mix width is 65%. The type of customers available in Delta Paper Mills is 36% (Xerox centers).

SUGGESTIONS:

increase profits of the company , it should concentrate the customers who are under 10-15 years . The company should concentrate more rate of marketing mix which is more than 75%. The frequent marketing mix should be more than 60% then we can easily attract the customers . The marketing demand factors should be more than 60%then we can easily increase the profits .

80

The product width of Delta Paper Mills should increase according to the competitors . The company should increase the marketing mix width. The company should increase the different types of customers like magazine publishers , printers etc .

CONCLUSION

This modern paper unit produces wide varieties of paper and paper boards .many of these have great demand in the market. This mill does not compromise with the quality standards. The paper and paper board produced in DPM Ltd is of atmost good quality and gained customer satisfaction.

One of the core strengths of DPM Ld is the hard working and dedicated administration staff ad workers. Due to their contribution the mill is leading towards excellence in quality.

81

DPM Ltd has an In-house Research and Development department continuously working on the new product development and product quality improvement and innovation.

Years after Year Delta Paper Mills Ltd is attaining new heights and emerging as the leader in the Indian Paper Industry.

QUESTIONNAIRE 1. How long you are purchasing the products of Delta Paper Mill? A. Below 5Years C. 10-15 Years B. 5-10Years D. Above 15Years

2. What is the opinion on present Marketing mix of Delta Paper Mill? A. Good B. Average C. Below average

3. Is the Delta Paper Mill following the marketing mix consistency? A. Following B. Consistence C. Changing

4. What are the factors influencing on Delta Paper Mill marketing Mix? A. Market demand B. Quality of production C. Cost of production

82

5. Do you agree that the product width have change with the competitors? A. Yes B. No

6. Are you expecting any improvement in Andhra Pradesh Paper Mill Product width? A. Yes B. No

7. Why the marketing mix of Delta Paper Mill is changing yearly? A. Market conditions C. Competitors B. Quality assurance D. Orders received

8. On what basis the new product development done by the Delta Paper Mill? A. Market demand C. Competitors B. Improved Technology D. Others

9. Which type of consumers available for Andhra Pradesh Paper Mill? A. Note book manufacturers C. Xerox centers B. Magazine publishers D. Printers

10. What is the opinion on Delta Paper Mill price value? A. Satisfactory B. Better C. Unsatisfied

11. Determine the pricing policies you recommend for the Delta Paper Mill? A. Credit Facilities C. Discounts B. Installment purchase Facilities D. Rebates

12.Influencing factors while selecting the companies . A. Financial Strength C. Business Experience B. Quality D. Growth & Profitability

83

D. Reputation 13. Product Mix of DPM is changing yearly? A .Marketing Condition C. Competitors 14. Services Received by Dealers? A .Minimum C. Maximum 15.Services received by whole salers? A .Low C.Prompt B.Average B .Average B .Qualty Assurance D .Order Received

BIBLIOGRAPHY

Philip

Kotler

&

Kevin

Lane

Keller,

Marketing

Management, Prentice Hall of India Pvt Ltd.

V.S.Rama

Swamy

&

S.Nama

kumari

Marketing

Management, Macmillan India Limited.

84

Czinkota

Kotabe

Marketing

Management,

Vikas

Publishing House . Rajan Saxena , Marketing Management, Tata Mcgraw Hill Publishing Company Ltd
Pulp and Paper Paper Maker

Journal Magazine

AGM of Indian Paper Makers Association.


Annual Reports of DELTA PAPER Mills Ltd. Indian Press Service News Bulletin.

Indian Paper Industry Macro Statistical Data

85

86

You might also like