project distribution channels

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ABSTRACT Distribution channels are behind every product and service that consumers and business buyers purchase every where. Usually, combination on institutions specializing in manufacturing, wholesaling, retailing and many other areas join force in Distribution channels. A Distribution channels are a set of inter dependent organization involved in the process of making a product or service available for use or consumption. Distribution channels decisions play a role of Strategic importance in the overall presence and success a company enjoys in the market palace. This project report entitled “A Study on Distribution Channel with Special Reference to Life time wire kitchen hardware in a’bad District”. To determine the dealer satisfaction of the product and future demands, needs, wants. The study starts with an introduction of the Distribution Channel, company profile, important of the Study, Review of Literature and objectives are set out for the study. Research methodology, data analysis and interpretation, findings and suggestions of the study follow.

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Page 1: Project Distribution Channels

ABSTRACT

Distribution channels are behind every product and service that consumers and

business buyers purchase every where. Usually, combination on institutions

specializing in manufacturing, wholesaling, retailing and many other areas join force in

Distribution channels.

A Distribution channels are a set of inter dependent organization involved in the

process of making a product or service available for use or consumption.

Distribution channels decisions play a role of Strategic importance in the overall

presence and success a company enjoys in the market palace.

This project report entitled “A Study on Distribution Channel with Special

Reference to Life time wire kitchen hardware in a’bad District”. To determine the

dealer satisfaction of the product and future demands, needs, wants.

The study starts with an introduction of the Distribution Channel, company

profile, important of the Study, Review of Literature and objectives are set out for the

study. Research methodology, data analysis and interpretation, findings and

suggestions of the study follow.

The response given by the dealers and analyzed and interpret using different

types of statistical tool such as percentage analysis, chi-square method.

Page 2: Project Distribution Channels

CHAPTER - I

INDRODUCTION

Place, Distribution, Channel, or Intermediary.

A channel of distribution comprises a set of institutions which perform all of the

activities utilized to move a product and its title from production to consumption.

Bucklin - Theory of Distribution Channel Structure (1966)

Another element of Neil H.Borden's Marketing Mix is Place. Place is also

known as channel, distribution, or intermediary. It is the mechanism through which

goods and/or services are moved from the manufacturer/ service provider to the user or

consumer.

There are six basic 'channel' decisions:

Do we use direct or indirect channels? (e.g. 'direct' to a consumer, 'indirect' via a

wholesaler)

Single or multiple channels

Cumulative length of the multiple channels

Types of intermediary (see later)

Number of intermediaries at each level (e.g. how many retailers in Southern

Spain).

Which companies as intermediaries to avoid 'intrachannel conflict' (i.e.

infighting between local distributors)

Page 3: Project Distribution Channels

Selection Consideration - how do we decide upon a distributor?

Market segment - the distributor must be familiar with your target consumer

and segment.

Changes during the product life cycle - different channels can be exploited

at different points in the PLC e.g. Foldaway scooters are now available

everywhere. Once they were sold via a few specific stores.

Producer - distributor fit - Is there a match between their polices, strategies,

image, and yours? Look for 'synergy'.

Qualification assessment - establish the experience and track record of your

intermediary.

How much training and support will your distributor require?

Types of Channel Intermediaries.

There are many types of intermediaries such as wholesalers, agents, retailers,

the Internet, overseas distributors, direct marketing (from manufacturer to user without

an intermediary), and many others. The main modes of distribution will be looked at in

more detail.

1. Channel Intermediaries - Wholesalers

They break down 'bulk' into smaller packages for resale by a retailer.

They buy from producers and resell to retailers. They take ownership or 'title' to

goods whereas agents do not (see below).

They provide storage facilities. For example, cheese manufacturers seldom wait

for their product to mature. They sell on to a wholesaler that will store it and

eventually resell to a retailer.

Wholesalers offer reduce the physical contact cost between the producer and

consumer e.g. customer service costs, or sales force costs.

A wholesaler will often take on the some of the marketing responsibilities.

Many produce their own brochures and use their own telesales operations.

2. Channel Intermediaries - Agents

Page 4: Project Distribution Channels

Agents are mainly used in international markets.

An agent will typically secure an order for a producer and will take a

commission. They do not tend to take title to the goods. This means that capital

is not tied up in goods. However, a 'stockiest agent' will hold consignment stock

(i.e. will store the stock, but the title will remain with the producer. This

approach is used where goods need to get into a market soon after the order is

placed e.g. foodstuffs).

Agents can be very expensive to train. They are difficult to keep control of due

to the physical distances involved. They are difficult to motivate.

3. Channel Intermediaries - Retailers

Retailers will have a much stronger personal relationship with the consumer.

The retailer will hold several other brands and products. A consumer will expect

to be exposed to many products.

Retailers will often offer credit to the customer e.g. electrical wholesalers, or

travel agents.

Products and services are promoted and merchandised by the retailer.

The retailer will give the final selling price to the product.

Retailers often have a strong 'brand' themselves.

4. Channel Intermediaries - Internet

The Internet has a geographically disperse market.

The main benefit of the Internet is that niche products reach a wider audience

e.g. Scottish Salmon direct from an Inverness fishery.

There are low barriers low barriers to entry as set up costs are low.

Use e-commerce technology (for payment, shopping software, etc)

There is a paradigm shift in commerce and consumption which benefits

distribution via the Internet

Page 5: Project Distribution Channels

1.1 IMPORTANTS OF THE STUDY

The study is very significant to understand the distribution channels.

The study is important to know the dealers satisfaction level for the dealership.

The study is important to know the dealers satisfaction level in the price of the

kitchen hardware.

The study is important to know the dealers preference for the quality.

The study is very important to know the sales volume.

The study is also analyses the effective media for improving the sales.

The study is important to know availability of the kitchen hardware.

The study is important to know margins in the kitchen hardware.

Page 6: Project Distribution Channels

1.2 COMPANY PROFILE 1.2 COMPANY PROFILE

BOARD OF DIRECTORS:

Mr. Kumara Mangalam Birla, Chairman

Mrs. Rajashree Birla

Mr. M.L.Apte

Mr. B.V.Bhargava

Mr. R.C.Bhargava

Mr. Y.P.Gupta

Mr. Cyril Shroff

Mr. S.G.Subhramanyan

Mr. Shailendra K.Jain (Whole-time Director)

Mr. D.D.Rathi (Whole-time Director)

Mr. S.B.Mathur

BUSINESS HEADS:

Mr. Shailendra K.Jain, Viscose staple fibre

Mr. Saurabh Misra, cement

Mr. Ravi Kastia, Sponge iron

Mr. S.K.Saboo, Textiles, Spinning

Mr. Vikram Rao, Textiles, Fabrics

Page 7: Project Distribution Channels

Mr. K.K.Maheshwari, Chemicals

WHOLE-TIME DIRECTOR AND CHIEF FINANCIAL OFFICER:

Mr. D.D.Rathi

COMPANY SECERETARY:

Mr.Ashok Malu

1.3 PRODUCT PROFILE:

Cement is the basic binding material, which is used for construction purpose

and it is a commodity which has become a part of our life and will find demand till

time stands still.

The Indian cement industry is on a roll. Riding on increased activity in real

estate, cement production has registered a growth of 7.24 per cent in April, 2005, at

11.41 million tones as against 10.49 million tones in the corresponding period a year

ago.

The growth trend has been on for some time now. In the April-January 2004-05

period, the sector registered a rise of 7.1 per cent, producing 108.06 million tones. If

these trends are anything to go by, it will not be long before the sector meets the

production target of 133 million tones set by the government in the fiscal 2004-05.

During the Tenth Plan, the industry, which is ranked second in the world in

terms of production, is expected to grow at 10 per cent per annum adding a capacity of

40-52 million tones, according to the annual report of the Department of Industrial

Policy and Promotion (DIPP). The report reveals that this growth trend is being driven

mainly by the expansion of existing plants and using more fly ash in the production of

cement.

A number of cement industry leaders have reported increase in dispatches

ranging from 5.44 per cent to around 10 per cent for the year ended March 31, 2005.

Page 8: Project Distribution Channels

Associated Cement Companies said its dispatches of 16.569 million tones are

the highest it has ever achieved. Yearly dispatches showed an increase of 7.9

per cent over the previous year (15.364 million tones) while production at

16.606 million tones (15.353 million tones), showed an increase of 8.5 per cent.

Dispatches from the Aditya Birla group (from Grasim and UltraTech) rose 5.44

per cent to touch 26.260 million tones. Clinker dispatches stood at 2.965 million

tones. Production rose 5.61 per cent. Grasim recorded cement dispatches at

13.379 million tones, and clinker dispatches at 296,000 tones. For UltraTech,

the figures were at 12.881 million tones and 2.669 million tones, respectively.

For the Ambuja Cement group, which observes a July-to-June fiscal, the

cumulative despatches for the first three quarters of the fiscal rose 10 per cent to

10.745 million tones from 9.733 million tonnes? Production for the same period

was recorded at 10.756 million tones, showing a rise of 11 per cent.

Both ACC and Ambuja Cement said their dispatches in March were the highest

ever for their groups. ACC reported dispatches at 1.572 million tones, up by 6 per cent

from the year-ago figure of 1.483 million tones; production rose 7.5 per cent, to 1.576

million tones from 1.466 million tones). Ambuja Cements reported dispatches of 1.356

million tones, up by 9 per cent year-on-year and production of 1.358 million tones, up

by 10 per cent.

The cement industry has also been witnessing a spurt in exports. India exported

about 8.13 million tones of cement and clinker between April-January 2004-05.The

export figures for cement were 3.31 million tones and 4.82 million tones for clinker in

the same period. The cement industry has also been witnessing a spurt in exports. India

exported about 8.13 million tones of cement and clinker between April-January 2004-

05.The export figures for cement were 3.31 million tones and 4.82 million tones for

clinker in the same period.

Page 9: Project Distribution Channels

Storage and usage information:

STORAGE

Store bagged cement on a raised floor in a damp-proof shed. If this is not

possible, then store the cement on a raised platform and cover with

waterproof sheeting. Use the cement in the order you receive it.

i.e. first in first out.

 

WATER

In general, the more water used for a given

quantity of cement, the weaker the concrete or

mortar will be. It is therefore important to use

the minimum amount of water required to make

the mix workable.

 

MIXING

Accurately measure all materials with a suitable container (wheelbarrow

or bucket). Mix thoroughly until a uniform colour is obtained. Add water

whilst mixing to avoid adding too much water.

 

CURING

Concrete or plaster should be kept moist for at least 7 days to prevent

cracking and to ensure that it's strength increases. Spray gently with

water and protect it with plastic sheets (or wet Hessian) to prevent it

from drying out.

Page 10: Project Distribution Channels

HEALTH AND SAFETY WARNING:

When working with cement wear safety glasses and gloves.

Wash you hands after working with wet cement.

In the event of cement contact with your eyes, rinse thoroughly with water and

get medical attention if necessary.

Keep Cement out of reach of children.

OTHER INFORMATION:

Transport in vehicles with adequate protection from weather.

Arrange cement bags on timber pallets/platform at least 15cm above the floor.

Place stacks away from external walls and they should not exceed 10 bags.

The cement should not be lumpy.

Cement should be from bags that are not torn or interfered with.

CEMENT PERFORMANCE

Cement performance of the Aditya Birla Group for April 2006:

Production at 26.76 lakh mt — up by 8.53 per cent

Despatches at 26.28 lakh mt — up by 6.08 per cent

The Aditya Birla Group's cement production for April 2006 grew by 8.53 percent

at 26.76 lakh mt as against 24.66 lakh mt during April 2005.

Despatches moved up by 6.08 per cent at 26.28 lakh mt in April 2006 as against

24.77 lakh mt in the corresponding period last year.

Cement performance of the Aditya Birla Group for May 2006:

Production at 26.09 lakh mt up 3.68 per cent

Despatches at 28.26 lakh mt up by 7.92 per cent

Page 11: Project Distribution Channels

The Aditya Birla Group's cement production for May 2006 grew by 3.68 percent at

26.09 lakh mt, while despatches rose by 7.92 per cent at 28.26 lakh mt, over May 2005.

The Aditya Birla Group's cement production for the period April-May 2006 at

52.86 lakh mt is up by 6.08 per cent vis-à-vis 49.83 lakh mt for April-May 2005, and

despatches at 56.33 lakh mt reflect a rise of 7.51 per cent as against 52.39 lakh mt.

Cement performance of the Aditya Birla Group for June 2006:

Production at 24.23 lakh mt up 6.10 per cent

Despatches at 24.74 lakh mt up by 9.37 per cent

The Aditya Birla Group's cement production for June grew by 6.10 per cent at

24.23 lakh mt, while despatches rose by 9.37 per cent at 24.74 lakh mt, over June 2005.

The Aditya Birla Group's cement production for the period April-June 2006 at

77.09 lakh mt is up by 6.09 per cent vis-a vis 72.66 lakh mt for April-June 2005 and

despatches at 76.89 lakh mt reflect a rise of 6.54 per cent as against 72.18 lakh mt.

Page 12: Project Distribution Channels

CHAPTER - II

REVIEW OF LITERATURE

Industry has been defined “as a process in which changes of a series of

strategically production are taking place and it involves those basic changes that

accompany the mechanization of an enterprise. The building of a new industry and the

opening of a new territory”

The achievements in the field of industrial development during the past three

decades in India have been significant and substantial in many respects

There is considerable literature on cement industry befitting, its long and

chequerred history and high economic importance. A good deal of analytical literature

exists at broad levels covering problems associated with productivity, financial

performance, size and technology, manpower and location.

Gupta.M.C.(1989)discussed the study revealed that profitability of the units has

been consistently good things largely to the partial decontrol of cement.

HarshDwivedi (1993)discussed to its wider ramification, analyzing among other

things, stages of control, marketing practices, trends and innovation, consumer

preference and importance of management. He found that existing capacity were

inadequate to meet the growing demand for cement and marketing practices lacked

depth and realism.

R.Ramanujam (1996) discussed its wider ramification, analyzing among

covering all aspects of cement unit, cost of production, productivity, marketing and

finance. He found that in the liberalized economy, the industry has a favorable market

factories affect capacity utilization viz., power cut, inadequate supply of coal and its

poor quality and shortage of forenighe wagone, with all these areas under government

control, the gult must take necessary steps to remove the hurdles

M.selvaraj(1996)discussed to the limited aspects of cement unit like finance,

administration, human resource and marketing aspect etc. he found that as cement

market has turned out to be a buyers market in recent years, effort should be made by

Page 13: Project Distribution Channels

the government and cement manufacturers association to popularize cement by

exhibiting various uses of cement and thus creating an increase in the demand of

cement.

K.shanmuga Vadivu (2002) discussed the research study has brought sufficient

market opportunity for the cement industry in different areas in Karur district, it has

been brought out in the report that. The various problems faced by the dealer, the trend

in cement industry. Almost all the companies understood customers insipid for quality.

The need of the hours is to have an effective distribution network so that supplies reach

and in time to customers. This will also help to ensure increased sales and promotion

activities.

1. M.C. Gupta, profitability analysis of cement industry with special reference to

Rajasthan 1988.

2. Harsh Dwivedi, cement industry in India Marketing perspectives, New Delhi:

Classier Publishing House, 1994.

3. R. Ramanujam, study on cement industry in Tamilnadu, 1996.

4. M.selvaraj, financial administration and human management in Indian cement

industriy,1996.

5. K. Shanmuga Vadivu, A study on marketing of cement in chettinad cement

corporation Ltd., puliyar at karur district in tamilnadu, 2002.

Page 14: Project Distribution Channels

CHAPTER - III

OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES:

To find out the distribution channels of life time wire kitchen hardware product in

A’bad district.

To compare the distribution system of life time wire product with other kitchen

hardware product.

SECONDARY OBJECTIVES:

To find out the advertisement efficiency of life time wire product.

To find out the marketing situations of life time wire product from others.

To find out the present problems faced by dealers.

To find out the any new scheme required by the dealers.

To give valuable suggestions to the company for increase the sales volume

Page 15: Project Distribution Channels

CHAPTER - IV

RESEARH METHODOLOGY

Pilot study tells about the completeness, accuracy convenience of the sampling

from which it is proposed to select the sample.

4.1 RESEARCH DESIGN:

On analysis the condition the researcher found that descriptive research design

is appropriate for the research for the study.

DESCRIPTIVE RESEARCH:

Descriptive research includes surveys and fact-finding enquiries of different

kinds. The major purpose of descriptive research is description of the state of affairs as

it exists at present. In social science and business research we quite often use the term

Ex post facto research for descriptive research studies. The main characteristic of this

method is that the researcher has no control over the variables; he can only report what

has happening.

Most ex post facto research projects are used for descriptive studies in which

the researcher seeks to measure such items as, for example, frequency of shopping,

preferences of people, or similar data. Ex post facto studies also include attempts by

researchers to discover causes even when they cannot control the variables. The

methods of research utilized in descriptive research are survey methods of all kinds,

including comparative and correlation methods. In analytical research, on the other

hand, the researcher has to use facts or information already available, and analyze these

to make a critical evaluation of the material.

Page 16: Project Distribution Channels

4.2 PRE-TEST:

The researcher tested the questionnaire with 62 respondents chosen from

different retailer at random and checked whether this questionnaire was understandable.

4.3 SAMPLING TECHNIQUES:

The researchers select the judgment sampling model for his researcher work.

4.4 SAMPLE SIZE:

The researcher selected the 62 respondents for the present study in A’bad

District.

4.5 AREA OF ANALYSIS:

The researcher has identified A’bad district as the area of analysis for this

project study.

Ahmedabad

Mehsana

Visnagar

Vijapur

4.6 DATA COLLECTION TECHNIQUES

The researcher used a Questionnaire, which was self developed after having

session of discussion with marketing manager. The statistical techniques such as on the

way of analysis of various chi-squares were applied to draw meaning full.

4.7 HYPOTHESIS TEST

CHI-SQUARE ANALYSIS:

This test was employed for testing hypothesis. It was used only when the

data satisfied the required conditions.

Page 17: Project Distribution Channels

Chi-square test is applied here to know whether there is a relationship between

Awareness of consumers.

PROCEDURE FOR CHI-SQUARE TEST:

The procedure for the test is given below:

1. DEFINITION OF THE PROBLEM:

First we have to define the problem in a clear-cut manner.

2. FORMULATION OF HYPOTHESIS:

Then we have to formulate Null hypothesis as well as alternative hypothesis on

the basis of our base assumption on research question.

3. FINDING OUT THE TABULATED VALUE:

Tabulated value is found out from table at a specified significant level.

4. ACCEPTANCE OR REJECTION OF HYPOTHESIS:

If the calculated value is higher than the table value, we have to accept the

alternative hypothesis or we have to reject the null hypothesis of we have to reject the

lesser hypothesis tabulated or we have to reject the lesser null hypothesis we have to

reject the alternative hypothesis.

Page 18: Project Distribution Channels

CHAPTER-V

Reliability data:To test the reliability of various constructs of the questionnaire, the Cronbach

coefficient alpha (equivalent to the average of all the split half correlation

coefficients) is used. In this study, it was found 0.659. That is the above of 0.6

that is set by the researcher. So we can say that the data is consistent in nature

and we can rely on it.

Case Processing Summary

N %

Cases Valid 62 100.0

Excludeda 0 .0

Total 62 100.0

a. Listwise deletion based on all variables in the procedure.

Reliability Statistics

Cronbach's Alpha N of Items

.659 12

DATA ANALYSIS AND INTERPRETATION

Page 19: Project Distribution Channels

Frequency test of gender

Gender

Frequency Percent Valid Percent

Cumulative

Percent

Valid male 57 91.9 91.9 91.9

female 5 8.1 8.1 100.0

Total 62 100.0 100.0

Interpretation: In this chart we shows that female respondent is less and male respondent is more just because of male is seating at the shop.

Frequency of age

Page 20: Project Distribution Channels

Age

Frequency Percent Valid Percent

Cumulative

Percent

Valid 21-30 22 35.5 35.5 35.5

31-40 14 22.6 22.6 58.1

41-50 19 30.6 30.6 88.7

Above 50 7 11.3 11.3 100.0

Total 62 100.0 100.0

Interpretation: In the chart in 21-30 age 22 respondent in 31-40 age 14 respondent in 41-50 age 19 respondent in above 50 age 7 respondent is there.

Frequency of the income

Page 21: Project Distribution Channels

Income

Frequency Percent Valid Percent

Cumulative

Percent

Valid 1,00,000 4 6.5 6.5 6.5

1,00,000 - 3,00,000 19 30.6 30.6 37.1

2,00,000 - 4,00,000 18 29.0 29.0 66.1

More than 4,00,000 21 33.9 33.9 100.0

Total 62 100.0 100.0

Interpretation: In this graph we shows that more than 4,00,000 income level respondent is more than the product selling is good.

Frequency test on reason for selling the life time wire product.

Page 22: Project Distribution Channels

Please provide the reason(s) for selling the life time wire product?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Good margine 16 25.8 25.8 25.8

Good promotional offer 8 12.9 12.9 38.7

High demand 13 21.0 21.0 59.7

Dealer relationship 8 12.9 12.9 72.6

Adequate credit policy 15 24.2 24.2 96.8

other reason please specify 2 3.2 3.2 100.0

Total 62 100.0 100.0

Interpretation: In this chart respondent is more on selling the product selling reason for the good margine because product price is consist.

Frequency test on basis of placed ordered for product.

Page 23: Project Distribution Channels

On which basis ,you placed ordered for Life time wire product?

Frequency Percent Valid Percent

Cumulative

Percent

Valid previous days demand 20 32.3 32.3 32.3

Average monthly sales 28 45.2 45.2 77.4

Whenever need 14 22.6 22.6 100.0

Total 62 100.0 100.0

Interpretation: In above chart we shows that in basis of placed ordered average monthly sales more than to previous days demand or whenever need.

Frequency test on how many times you placed ordered.

Page 24: Project Distribution Channels

How many times you placed order for Life time wire product?

Frequency Percent Valid Percent

Cumulative

Percent

Valid Daily 11 17.7 17.7 17.7

Weekly 21 33.9 33.9 51.6

Monthly 21 33.9 33.9 85.5

Semi annually 6 9.7 9.7 95.2

Annually 3 4.8 4.8 100.0

Total 62 100.0 100.0

Interpretation: Above chart the respondent of the placed ordered is same on the weekly or monthly.

Frequency test on how much time does it take for delivery.

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How much time does it take for delivery of life time wire Product after

ordering?

Frequency Percent Valid Percent

Cumulative

Percent

Valid 6 - 12 hours 16 25.8 25.8 25.8

1 - 2 days 9 14.5 14.5 40.3

2 - 7days 21 33.9 33.9 74.2

More than 7 days 16 25.8 25.8 100.0

Total 62 100.0 100.0

Interpretation: In this chart the delivery time of the product ratio is high on a 2 -7 days. Than it must be affect on the selling because it’s a very more days to delivery.

Page 26: Project Distribution Channels

T- Test

Gender t test

Group Statistics

Gender N Mean Std. Deviation Std. Error Mean

We are always getting all

products as per our demand.

male 57 4.05 .895 .119

female 5 2.80 1.304 .583

Quantity of demanded

Product are always same as

ordered quantity

male 57 3.98 .991 .131

female5 4.00 .000 .000

Delivery time is same for all

days.

male 57 3.49 1.136 .150

female 5 4.40 .894 .400

Behavior of delivery boy is

good enough & cooperative.

male 57 3.75 1.214 .161

female 5 2.60 .894 .400

Time accuracy of delivery

systems are not at

satisfactory level.

male 57 3.49 1.136 .150

female5 3.00 1.000 .447

Because of late delivery, we

lose our customer

sometimes.

male 57 3.56 1.195 .158

female5 4.40 .894 .400

There is no need to change

current delivery.

male 57 4.09 1.169 .155

female 5 3.00 .707 .316

Credit policy of the company

is appropriate to the market.

male 57 3.88 .965 .128

female 5 3.80 1.643 .735

There is no need to change

Pricing Policy of the

company.

male 57 3.89 1.064 .141

female5 3.40 1.342 .600

Quality of the product always

remains consistent.

male 57 3.89 1.012 .134

female 5 3.40 .548 .245

With respect to Price,

company provides proper

value to customer.

male 57 4.11 .920 .122

female5 3.60 1.140 .510

Overall, I am satisfied as a

distributor of the company.

male 57 4.25 .950 .126

female 5 4.20 .837 .374

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chi-square test

1.

Ho : There is no significant relationship between reason for selling and time placed

order of product.

H1 : There is significant relationship between awareness and variety of product.

Please provide the reason(s) for selling the life time wire product? * How many times you placed

order for Life time wire product? Crosstabulation

Count

How many times you placed order for Life time wire

product?

TotalDaily Weekly Monthly

Semi

annually Annually

Please provide the

reason(s) for selling

the life time wire

product?

Good margine 4 9 3 0 0 16

Good promotional

offer4 2 0 2 0 8

High demand 2 1 8 2 0 13

Dealer relationship 1 0 5 1 1 8

Adequate credit

policy0 9 5 0 1 15

other reason please

specify0 0 0 1 1 2

Total 11 21 21 6 3 62

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 49.382a 20 .000

Likelihood Ratio 53.633 20 .000

Linear-by-Linear Association 9.166 1 .002

N of Valid Cases 62

Page 28: Project Distribution Channels

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 49.382a 20 .000

Likelihood Ratio 53.633 20 .000

Linear-by-Linear Association 9.166 1 .002

a. 26 cells (86.7%) have expected count less than 5. The minimum

expected count is .10.

2.

Please provide the reason(s) for selling the life time wire product? * How much time does it take for

delivery of life time wire Product after ordering? Crosstabulation

Count

How much time does it take for delivery of life time

wire Product after ordering?

Total6 - 12 hours 1 - 2 days 2 - 7days

More than 7

days

Please provide the

reason(s) for selling

the life time wire

product?

Good margine 5 0 7 4 16

Good promotional

offer4 2 1 1 8

High demand 1 1 6 5 13

Dealer relationship 0 1 4 3 8

Adequate credit

policy6 4 3 2 15

other reason please

specify0 1 0 1 2

Total 16 9 21 16 62

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Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 21.435a 15 .123

Likelihood Ratio 26.455 15 .034

Linear-by-Linear Association .056 1 .813

N of Valid Cases 62

a. 22 cells (91.7%) have expected count less than 5. The minimum

expected count is .29.

3.

On which basis ,you placed ordered for Life time wire product? * How many times you placed order for Life time wire product? Crosstabulation

Count

How many times you placed order for Life time wire product?

TotalDaily WeeklyMonthl

ySemi

annuallyAnnuall

y

On which basis ,you placed ordered for Life time wire product?

previous days demand

4 9 7 0 0 20

Average monthly sales

5 8 10 5 0 28

Whenever need 2 4 4 1 3 14

Total 11 21 21 6 3 62

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Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 15.633a 8 .048

Likelihood Ratio 15.792 8 .045

Linear-by-Linear Association 4.570 1 .033

N of Valid Cases 62

a. 11 cells (73.3%) have expected count less than 5. The minimum

expected count is .68.

4.

On which basis ,you placed ordered for Life time wire product? * How much time does it take for

delivery of life time wire Product after ordering? Crosstabulation

Count

How much time does it take for delivery of life time wire

Product after ordering?

Total6 - 12 hours 1 - 2 days 2 - 7days

More than 7

days

On which basis ,you

placed ordered for Life

time wire product?

previous days

demand9 4 5 2 20

Average monthly

sales5 4 12 7 28

Whenever need 2 1 4 7 14

Total 16 9 21 16 62

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Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 11.567a 6 .072

Likelihood Ratio 11.251 6 .081

Linear-by-Linear Association 8.868 1 .003

N of Valid Cases 62

a. 6 cells (50.0%) have expected count less than 5. The minimum

expected count is 2.03.

ANOVA TABLE

1.Age

ANOVA

Sum of

Squares df Mean Square F Sig.

We are always getting all

products as per our

demand.

Between Groups 1.307 3 .436 .439 .726

Within Groups 57.548 58 .992

Total 58.855 61

Quantity of demanded

Product are always same

as ordered quantity

Between Groups 3.443 3 1.148 1.291 .286

Within Groups 51.541 58 .889

Total 54.984 61

Delivery time is same for

all days.

Between Groups 9.097 3 3.032 2.507 .068

Within Groups 70.145 58 1.209

Total 79.242 61

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Behavior of delivery boy is

good enough &

cooperative.

Between Groups 14.481 3 4.827 3.617 .018

Within Groups 77.406 58 1.335

Total 91.887 61

Time accuracy of delivery

systems are not at

satisfactory level.

Between Groups 2.732 3 .911 .708 .551

Within Groups 74.622 58 1.287

Total 77.355 61

Because of late delivery,

we lose our customer

sometimes.

Between Groups 4.797 3 1.599 1.135 .342

Within Groups 81.671 58 1.408

Total 86.468 61

There is no need to

change current delivery.

Between Groups 6.219 3 2.073 1.546 .212

Within Groups 77.781 58 1.341

Total 84.000 61

Credit policy of the

company is appropriate to

the market.

Between Groups 1.901 3 .634 .602 .616

Within Groups 61.066 58 1.053

Total 62.968 61

There is no need to

change Pricing Policy of

the company.

Between Groups 5.490 3 1.830 1.603 .198

Within Groups 66.204 58 1.141

Total 71.694 61

Quality of the product

always remains

consistent.

Between Groups 4.379 3 1.460 1.531 .216

Within Groups 55.314 58 .954

Total 59.694 61

With respect to Price,

company provides proper

value to customer.

Between Groups 1.576 3 .525 .584 .628

Within Groups 52.166 58 .899

Total 53.742 61

Overall, I am satisfied as

a distributor of the

company.

Between Groups 3.406 3 1.135 1.318 .277

Within Groups 49.965 58 .861

Total 53.371 61

2. Income

ANOVA

Sum of

Squares df Mean Square F Sig.

Between Groups 12.867 3 4.289 5.409 .002

Within Groups 45.988 58 .793

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We are always getting all

products as per our

demand.

Total

58.855 61

Quantity of demanded

Product are always same

as ordered quantity

Between Groups 2.774 3 .925 1.027 .387

Within Groups 52.210 58 .900

Total 54.984 61

Delivery time is same for

all days.

Between Groups 2.083 3 .694 .522 .669

Within Groups 77.159 58 1.330

Total 79.242 61

Behavior of delivery boy is

good enough &

cooperative.

Between Groups 10.212 3 3.404 2.417 .075

Within Groups 81.675 58 1.408

Total 91.887 61

Time accuracy of delivery

systems are not at

satisfactory level.

Between Groups 6.823 3 2.274 1.870 .145

Within Groups 70.532 58 1.216

Total 77.355 61

Because of late delivery,

we lose our customer

sometimes.

Between Groups 5.680 3 1.893 1.359 .264

Within Groups 80.788 58 1.393

Total 86.468 61

There is no need to

change current delivery.

Between Groups 16.138 3 5.379 4.598 .006

Within Groups 67.862 58 1.170

Total 84.000 61

Credit policy of the

company is appropriate to

the market.

Between Groups .132 3 .044 .041 .989

Within Groups 62.836 58 1.083

Total 62.968 61

There is no need to

change Pricing Policy of

the company.

Between Groups 3.841 3 1.280 1.094 .359

Within Groups 67.853 58 1.170

Total 71.694 61

Quality of the product

always remains

consistent.

Between Groups 8.090 3 2.697 3.031 .036

Within Groups 51.604 58 .890

Total 59.694 61

With respect to Price,

company provides proper

value to customer.

Between Groups 7.754 3 2.585 3.260 .028

Within Groups 45.988 58 .793

Total 53.742 61

Between Groups 3.982 3 1.327 1.559 .209

Within Groups 49.389 58 .852

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Overall, I am satisfied as

a distributor of the

company.

Total

53.371 61

CHAPTER - VI

FINDINGS OF THE STUDY

(26%) of the respondents are having Chettinadu cement dealership. And 16% of

respondents are having Birla cement dealership.

(26%) of the respondents feel that Chettinadu cement is having high sales

volume. At the same time Birla cement is having less sales volume.

(26%) Chettinadu cement most valuable suppliers from dealer’s point of view.

And Birla cement (16%) of respondents are considering most valuable

suppliers.

(92%) of the respondents feel that quality of the product is excellent. And (8%)

of the respondents feel that quality is poor.

(14%) of the respondents satisfied with price of the products. And (86%) of the

respondents not satisfied with price of the products.

(26%) Chettinadu cement and (26%) Dalmia cement they are moving fast in

cement industry. And (12%) Birla cement is moving slowly.

(6%) of the respondents feel that order and replacement is highly satisfied. And

(62%) of the respondents feel that average.

(28%) of the respondents highly satisfied with availability of the product. And

(10%) of the respondents not satisfied.

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(12%) of the respondents satisfied with margins offered by the product. And

(68%) of the respondents feel that margins of the product is average.

(62%) of the respondents satisfied with Birla cement dealership. And (38%) of

the respondents not satisfied.

(42%) of the respondents feel that advertisement offered by Birla cement is too

high. And (14%) of the respondents feel that advertisement is low.

(10%) of the respondents feel that sales promotional efforts of the Birla cement

is excellent. (38%) of the respondents feel that poor.

(30%) Dalmia cement, (28%) Birla cement they are having more life time. And

(12%) Ramco cement has less life time from others.

(52%) of the respondents satisfied with reliability of the Birla cement. And

(12%) of the respondents not satisfied.

(12%) of the respondents satisfied with the financial schemes of the Birla

cement. And (88%) of the respondents not satisfied.

(70%) of the respondents satisfied with delivery period of the product with in 5

days. And (30%) of the respondents not satisfied.

From the chi-square test we find out that there is no significant association

between more life time and reliability of the Birla cement.

From the chi-square test we find out that there is no significant association

between financial schemes and satisfaction with Birla cement dealership.

From the chi-square test we find out that there is no significant association Sales

promotional effects and reliability of Birla cement

Page 36: Project Distribution Channels
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CHAPTER - VIICHAPTER - VII

SUGGESTIONSUGGESTION

Life time wire kitchen hardware product should concentrate in credit facility of

the dealers.

Fixed the standard price of the product

Life time wire kitchen hardware product should concentrate on sales man visit

for wide marketing.

Life time wire kitchen hardware product should concentrate to attract the

dealers.

Life time wire kitchen hardware product should improve their sales promotional

efforts.

Life time wire kitchen hardware product does a market research and gets feed

back.

Life time wire kitchen hardware product should concentrate to give incentives

to the sub-dealers also.

Life time wire kitchen hardware product should concentrate to fulfill the service

for dealers required.

Page 38: Project Distribution Channels

CHAPTER - VIIICHAPTER - VIII

CONCLUSIONCONCLUSION

After analysis the data we have concluded that Chettinadu cement, Sankar

cement, and Dalmia cement they are captured first three place and Birla cement is in

fourth place. Because the sales volume of the Birla cement is very low compare than

others and the aware of the Birla cement is very less in Thiruvarur dist. Moreover Birla

cement has limited dealership with dealers.

So automatically there is lack of availability creates. Therefore Birla cement has

to improve its sales promotional efforts as well as follow some strategies through

effective market research and get feedback from their consumers and

customers(dealers).And give more advertisement so that move powerful than others

and fixed the standard price.

At the same time quality (life time of the cement) delivery time of the Birla

cement is good.

“IN SIMPLE WORDS BIRLA CEMENT IS UNDER DEVELOPING STAGE IN

THIRUVARUR DIST”

Page 39: Project Distribution Channels

CHAPTER - IX

LIMITATION OF THE STUDY

One of the important of the study was lack of time. Though the respondent to

the study was vast due to the time constraints the sample size was limited.

The researcher has difficulty with most of the respondents who was not willing

to cooperate with the study, as they were very busy with their work.

The research had also difficulty in getting some information, which the

respondents were not interested to give.

The researcher had difficulty with the respondents because they did not fill up

the questionnaire in proper time.

Another limitation of the study was confined with not only retailers but also

consumers for survey of this study.

Page 40: Project Distribution Channels

CHAPTER - X

SCOPE OF THE FURTHER STUDY

* The scope of the study is confirmed to distribution channel with special reference

to the “LIFE TIME WIRE PRODUCT” in Ahmedabad district.

* The study can help to the management to know the factors why their sales

volumes are low.

* The study will help to improve the sales volumes of the “LIFE TIME WIRE

PRODUCT”

* The recommendation and suggestion of the study can also be applied to the

similar project or similar situation.

Page 41: Project Distribution Channels

CHAPTER - XI

Questionnaire

Dear Respondent,

We are the students of V. M. Patel Institute of Management , Ganpat University,

Kherva, and studying in MBA. We are conducting a survey on “ Distribution channel

of life time wire product” Hence, data provided by you will be kept as confidential

and exclusively used for academic purpose only.

Please Tick (√) on one option you feel the most appropriate.

1. GenderA. Male ( )B. Female ( )

2. Age :A. 21-30 ( )B. 31-40 ( )C. 41-50 ( )D. Above 50 ( )

3. Income group (per year)

Below 100,000 ( ) 100,000 - 300,000 ( )

2 00,001 – 400,000 ( ) More than 400,000 ( )

4. Are you selling life time wire product? A. Yes ( ) B. No ( )

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5. On which basis ,you placed ordered for Life time wire product?

A. Previous days demand B. Average Monthly sales C. Whenever need

6. How many times you placed order for Life time wire product?

[ ] Daily [ ] Weekly , -_______Times Per week [ ] Monthly - _______Times Per month [ ] Semi annually - _____Times per six month [ ] Annually -________Times per year

7. How much time does it take for delivery of life time wire Product after ordering?

A. 6 – 12 hoursB. 1 to 2 daysC. 2 to 7 daysD. More than 7 day

Page 43: Project Distribution Channels

8. Please Tick (√) on one option you feel the most appropriate for following statements.

1.STRONGLY DISAGREE 2. DISAGREE 3. NEUTRAL 4. AGREE 5. STRONGLY AGREE

No. 1 2 3 4 5

1. We are always getting all products as per our demand.

2. Quantity of demanded Product are always same as ordered quantity

3 Delivery time is same for all days

4 Behavior of delivery boy is good enough & cooperative

5 Time accuracy of delivery systems are not at satisfactory level

6 Because of late delivery, we lose our customer sometimes.

7 There is no need to change current delivery system

8 Credit policy of the company is appropriate to the market

9 There is no need to change Pricing Policy of the company

10. Quality of the product always remains consistent.

11. With respect to Price, company provides proper value to customer

12. Overall, I am satisfied as a distributor of the company.

10. Give your valuable suggestion to the company for improvement.

_______________________________________________________________________________________________________________________________________________

Page 44: Project Distribution Channels

BIBLIOGRAPHY

BOOKS

1.Marketing Management “Philip Kotler” [PRENTICE HALL OF INDIA PVT,LTD

NEW DELHI-110001,2003.] 11th EDITION

2. Research Methodology “ C.R.Kothari”[NEW AGE

INTERNATIONAL(P)LIMITED,HYDERABAD]

2ND EDITION.

3. Marketing “Dr N. Rajan and sanjith.R.Nair”[SULTAN CHAND&SONS

Daryaganj New Delhi-110002,1987]6th EDITION.

4. Marketing Management S.A.Sherleker[PRENTICE HALL OF INDIA PVT,LTD

NEW DELHI-110001,2003.] 1stEDITION

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