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TABLE OF CONTENT
S.NO TOPIC PAGE NO.
1. PREFACE 7
2. INTRODUCTION OF THE COMPANY 9
3. ORGANAZITIONAL STRUCTURE 28
4. PRODUCTS OF THE COMPANY 36
5. PERFORMANCE OF THE COMPANY 56
6. CHALLENGES FACED BY ITC 61
7. RESEARCH PROBLEM 65
8. SCOPE AND OBJECTIVE 68
9. REVIEW OF LITERATURE 70
10. HYPOTHESIS 73
11. RESEARCH DESIGN 75
12. COLLECTION OF DATA 79
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13. ANALYSIS OF DATA 81
14. INTERPRETATION OF DATA 84
15.FINDI NG 96
16. CONCLUSION 98
17. SUGGESTION 100
18. LIMITATION 102
19. ANNEXURE 104
20. BIBLIOGRAPHY 108
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PREFACE
To start a business the success depends upon the research done about the particular & consumer
attitude the product. Marketing research plays a vital role in a business to make it successful. I
tried to put my best effort to complete the task on the basis of skills. I am having this study done
about the flour sales & distribution in the city of different companies. In order to know about the
opportunities in the mareket.Inthe study, an attempt is made to cover every expect of these
objectives to find out solutions for the company.
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COMPANY OVERVIEW
ITC is one of the India`s foremost private sector companies with a market capitazation of nearly
US $ 15 billion & a turnover of US
$ 6 billion. Rated among the World`s Leading Companies by Forbes manazine, ITC ranks third
in pre-tax profit among India`s private
Sector corpoiration.ITC has a diversified presence in Cigarettes, Hotels, Paperboard & Specialty
Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery, Greeting
Cards & other FMCG products. While ITC is an outstanding market leader in its traditional
businesses of Cigarettes, Hotels, Paperboards, Packaging & Agri-Export, it is rapidly gaining
market share even in its nascent businesses of Branded Apparel, Greeting Cards & Packaged
Foods & Confectionery.
As one of India`s most valuable & respected corporations, ITC is widely perceived to be
dedicatedly nation- oriented. Chairman Y C Deveshwar calls this source of inspiration (a
commitment beyond the market).In his own words ;( ITC believesthat its aspiration to
create enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practices this philosophy by not only driving each of its businesses
towards international competitiveness but by also consciously contributing to enhancing
the competitiveness of the larger value chain of which it is a part).
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ITC`s diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution reach,
superior brand-building capabilities, effective supply chain management & acknowledged
services skills in hoteliering. Over time, the strategic forays into new businesses are expected to
grammar a significant share of these emerging high-growth markets in India.
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ITC VISION
Sustain ITCs position as one of the Indias most Valuable corporations through world
Class performance, creating growing value For the Indian & the companys
Stake holders.
ITC MISSION
To enhance the wealth generating capability of Enterprise in a globalizing environment,
delivering Superior & sustainable stake holder value.Over the years, ITC has evolved from a
single Product Company to a multiple business corporation.Its business separated over a wide
spectrum, Ranging from cigarettes & tobacco to hotels Packaging, paper & paperboards &
international.
Commodities trading.
ITC defined Corporate Governance as a systemic Process by which companies are
directed & controlled to
Enhance their wealth generating capacity.
Since large corporation employ wast quantum of a societal Resources, we believe that
the governance process should Ensure that these companies are managed in a manner that
Meets stake holders aspirations & societal expectations.
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CORE PRINCIPLES
ITC`s Corporate Governance initiative is based on two core principles. These are
Management must have the executive freedom to drive the enterprise forward withoutundue restraints; and
This freedom of management should be exercised with in a framework of effectiveaccountability
CONTROL
ITC believes that control is a necessary concomitant of its second core principle of governance
that the freedom of management should be exercised within a framework of appropriate checks
and balances. Control should prevent misuse of power, facilitate timely management response to
change, and ensure that business risks are preemptively and effectively managed.
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Listen to our customers & supply the ideal product at
reasonable price
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HISTORY AND BACKGROUND
ITC was incorporated on August 24,1910 under the name ofImperial Tobacco Company of
India Limited. Its beginnings were humble. A leased office on RADHA BAZAR Lane,
Kolkata, was the centre of company`s existence. The Company celebrated its 16 birthday on
August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee,(now renamed
J.L. Nehru Road) Kolkata, for the sum of Rs 310,000.This decision of the Company was
historic in more ways
Than one. It was to mark the beginning of a long and eventful journey in to India` future. The
Company`s headquarter building,Virgina House, which came up on that plot of land two years
later,would go on to become one of Kolkata`s most venerated landmarks. The Company`s
ownership progressively indianised, and the name of the Company was changed to I.T.C Limited
in 1974. In recognition of the Company`s multi-businesses portfolio encompassing a wide range
of businesses-Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &
Specailty Papers, Agri-Exports,Food, Lifestyle Retailing and Greeting Gifting & Stationery-the
full stops in the Company`s name were removed effective September 18, 2001. The Company
now stands rechristened ITC Limited.
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In 1925 as a strategic backward integration for ITC`s Cigarettes business. It is today India`s
most sophisticated packaging house. In 1975 the Company launched its Hotels business with the
acquisition of a hotel in Chennai which was rechristened ITC-Welcome group hotel
Chola`.The objectives of ITC`S Entry into hotels business was rooted in the concept of creating
value for the nation.ITC chose the hotels business for its potential to earn high levels of foreign
exchange, create tourism infrastructure and generate large scale direct and indirect employment.
Since then ITC`s Hotel`s business has grown to occupy a position of leadership, with 66 owned
and managed properties spread across India.
In 1979, entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in India. Bhadrachalam
Paperboards amalgamated with the Company effective March 13,2002 and became a Division of
the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged
with the Company`s Tribeni Tissuses Division to from the Paperboards & specialty Papers
Division. ITC`S paperboards` technology, productivity, quality and manufacturing processes are
comparable to the best in the world.
In 2004 ,ITC acquired the paperboard manufacturing facility ofBILT Industrial
PACKAGING Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. This KOVAI Unit allows ITC
to improve customer service with reduced lead time and a wider product range.
On 1985, ITC SET up Surya Tobacco Co. in Nepal as a joint venture with the reputed Soaltee
group. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Private Limited (Surya Nepal).
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In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a
major supplier of tissue paper to the cigarettes industry. The merged entity was named the
Tribeni Tissues Division (TTD). To harness strategic and operational synergies TTD was
merged with the Bhadrachalam Paperboards Division to form Paperboards & Specialty Papers
Division in November 2002.
Also in 1990, leveraging its agri-sourcing competency, ITC set up the International Business
Division (IBD) for export of agri- commodities. The division is today one of Indias largest
exporters. ITCs unique & now widely acknowledged e- Choupal initiative began in 2000 with
Soya farmers in Madhya Pradesh. Now it extends to 6 states covering over 3.1 million farmers.
In 2000,ITCs Packaging business high quality greeting cards under the brand name
Expressions. Launched a line of In 2002 , the product range was enlarged with the introduction
of the Gift wrappers, Autograph books & Slam books. In the same year, ITC also launched
Expressions Matrubhasha, a vernacular range of greeting cards in eight. Language &
Expressions Paper raft, a range of premium stationery products. In 2003, the company rolled
out Classmates, arrange of notebooks in the school stationery segment.
ITC also entered the Lifestyle retailing business with the Wills Sport range of international
quality relaxed. Wear for men & women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) & Wills Clublife evening
wear (2003).ITC also initiated a foray into the popular segment with its mens wear brand ,
John players, in 2002.
In 2000 . ITC pun off its information technology business into a wholly owned subsidiary , ITC
InfoTech India Limited. To more aggressively pursue emerging opportunities in this area.
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ITC made its entry into the braded &packaged Foods business in August 2001 with the launch of
the Kitchens of Indiabrand. A mare broad- based entry has been made since June 2002 with
brand launches in the Confectionery, Staples & Snacks Foods segments. In 2002, the mint-o
trademark was acquired & relaunched in orange &mint flavors. In the same yearCandy man
was added to the confectionery range & AashirvaadAtta was rolled out. The Aashirvaad
brand now extends to ready-to-eat foods, ready-to-cook pastes & salt. In 2003 the Candy man
range was expanded to include deposited candies & clairs. In 2003 Sun feastbiscuits were
launched & mint-o lemon mint flavor was introduced. In 2004 the Kitchens of India brands
was extended to cooking pastes.
In 2002,ITCs philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in Safety Matches initiative. ITC now markets popular safety
matches brands like iKno, Mangle Deep , Vaxlit, Delite & Aim.
ITCs foray into the marketing ofAgarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITCs popular agarbattis brands include
Spriha & Mangle Deep across a range of fragrances like Rose, Jasmine, Sandalwood,
Madhur, Sambrani & Nagchampa.
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ITC Registered Office
ITC Limited
Virgina House
37 J.L Nehru Road
Kolkata
Pin Code700071
INDIA
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An overview of ITC Saharanpur Factory
ITC Saharanpur Factory was established in the year 1926 and is the second oldest among all the
cigarette factories after Merger. It manufactures processed cut tobacco and packed cigarettes. It
has a built up area of 26334 s-m. The facilities include the production block consisting of
primary manufacturing department (PMD) & secondary manufacturing department (SMD) ,leaf
go down ,WMS go down , FG (shipping department) , utilities , service block , administrative
block & gate house .
Tobacco leaves are purchased from farmers through auction by ILTD (leaf tobacco division)
& are sending to different ITD factories depending on their requirement. Tobacco leave is
divided in 2 parts, the lamina (leaf part) & the stem (the midrib separated from lamina by
threshing). Tobaccos leaves are received in leaf go down & stored till the time they are issued to
PMD for processing.
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The PMD process in 2 separated lines the (the lamina & the stem line respectively) which result
in processed cut tobacco which gets stored in Cut Tobacco Store (CTS). From CTS it is issued
to SMD for production of packed cigarettes. The SMD is divided in 2 sectionsthe maker & the
packer sections. Wrapping materials stores (WMS) materials are supplied from WMS go down
at this state both the maker & the packer for production. WMS materials are all other things
cigarettes packet other than the tobacco the maker is responsible for producing cigarettes sticks
& the packer section produces packed cigarettes These are then sent to the finished goods go
down for temporary storage & eventual shipment from there.
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CAREERS WITH ITC
ENTRY LEVEL RECRUITMENT
ITC visits premier Engineering and Management campuses every year to induct quality talent for
its various Businesses.
Manufacturing
ITC inducts talent for the Technical function from the 5 IITs (Chennai, Delhi, Kanpur,
Kharagpur, Powai) and some of the NITs. Engineers from disciplines such as Mechanical,
Electrical and Electronics, Production Engineering, Chemical and Civil are considered for
placement.
The process starts in August each year with a campus visit and a pre-placement presentation.
This provides an opportunity for young aspirants to learn more about the Company, its history
and achievements, its corporate strategy, details of its various businesses and the kind of careers
they can look forward to.
The selection process is objective and robust. A range of selection
tools are used. These include assessment centres, group tasks and in-
depth personal interviews.
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Candidates found suitable for employment are immediately given offers to join ITC in July of
the following year. After a comprehensive induction programme, they are assigned to various
businesses of the Company.
Marketing and Human Resources
ITC sources talent from the premier Management Institutes of the
country for the Marketing and HR functions. These campuses
include the IIMs, ISB, XLRI, FMS, IIFT, TISS, JBIMS and
Symbiosis.
The pre-placement presentation at campuses, normally in September/October each year, provides
an opportunity for young aspirants to know more about the Company, its history and
achievements, its corporate strategy, details of the various businesses and the kind of careers they
can look forward to.
During these visits, ITC also selects first-year students for Summer Internships during April to
July of the following year.
A team of ITC managers visits campuses once again between December and March for final
placement. The process consists of group discussions and personal interviews preceded by
psychometric tests and assessment centres. Employment offers are made to selected candidates
immediately. On joining ITC in July, candidates undergo an induction programme before being
assigned to one of the Company's businesses.
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Trading, Sourcing and Logistics
ITC visits premier institutes such as IIMA, IIFT, IRMA and
MANAGE to induct talent for its Agri Business Division.
Pre-placement presentations at campuses normally take place in
September/October each year. These presentations provide an
opportunity for young aspirants to know more about the Company, its history and achievements,
its corporate strategy, details of its various businesses and the kind of careers they can look
forward to.
During these visits, first-year students are selected for Summer Internships
with ITC in April to July of the following year.A team of ITC managers
visits these campuses once again between December and March for campus
interviews. The process consists of group discussions and personal interviews preceded by
psychometric tests and assessment centers.
Employment offers are made to selected candidates immediately. On joining ITC in July,
candidates participate in an induction programme. Thereafter they are assigned to responsibilities
in Trading, Sourcing and Logistics in the Agri Business Division.
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Finance
ITC recruits entry-level talent for the Finance function from amongst
qualified Chartered Accountants and MBAs specializing in Finance.
Candidates are short-listed for selection from a pool of applicants that
apply to ITC on-line through the Company's portal at www.itcportal.com. Recruitment of entry
level talent in the Finance Function takes place twice a year.
Preliminary interviews are held at selected locations. The
short-listed candidates are called to Kolkata for the final
selection process which extends over two days. The selection
process comprises psychometric tests, assessment centers,
group tasks and personal interviews. The interviewing panel
looks for a strong conceptual base in finance and accounting. Effective inter-personal skills,
integrity, intellectual rigour, a "will do" attitude, creativity, leadership and high energy are other
essential attributes.
Candidates who receive offers of employment undergo a comprehensive induction programme
before being assigned to the Internal Audit function. The tenure in the Internal Audit function
normally extends over a period of 3 years. Following this, they are assigned operational
responsibilities in one of the Company's businesses.
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Manfred Boden (West-Germany) obtains 1980-81 unsolicited computer print-outs from
"spirit" comunicators. Before that he received telephone calls. Until 1983 he has also
unsolicited contacts with communicators of non-human evolution.
Hans Otto Koenig developed new spirit communication technologies from 1982 to 1988,
employing extremely low frequency oscillators, as well as lights in the ultraviolet and
infrared range. In 1983 he appeared on a popular radio program on Europes largest radio
station, Radio Luxembourg. The host, Rainer Holbe, had Koenig set up his equipment
under close supervision of the station engineers. One of the engineers asked if a voice
could come through in direct reply to a question, and a voice quickly replied, We hear
your voice. Otto Koenig makes wireless contact with the dead. Stunned, Rainer Holbe
addressed the millions of listeners across Europe, I tell you, dear Listeners of Radio
Luxembourg, and I swear by the life of my children, that nothing has been manipulated.
There are no tricks. It is a voice, and we do not know from where it comes.
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Formals 3Tierd governance structure :
Board of director:
Comprising executive (4) &non executive directors (11) strategic supervision
Corporate management committee:
Comprising executive directors & senior managers strategic management
Divisional Chief executive & divisional management committee:
Executive management
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SHARE HOLDERS
BOD
CORPORATE MANAGEMENT COMMITTEE
(CMC)
DMV DMC DMC DMC DMC
(HOTEL) (PAPER) (TOBACCO) (IT) (AGGI)
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Board of Directors
Chairman
Yogesh Chander Deveshwar
Corporate Management
Committee
Directors
Y C Deveshwar Chairman
A Singh Member
K Vaidyanath Member
K N Grant Member
Executives
N Anand Member
A Nayak Member
T V Ramaswamy Member
S Sivakumar Member
K S Suresh Member
R Tandon Member
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B B Chatterjee Member & Secretary
Executive Vice President & Company Secretary
Biswa Behari Chatterjee
General Counsel
Kannadiputhur Sundararaman Suresh
Investor Service Centre
37 Jawaharlal Nehru Road, Kolkata 700 071, India
Phone: 033-2288 6426/2288 0034
Fax: 033-2288 2358
E-mail: [email protected]
Auditors
Deloitte Haskins & Sells
Chartered Accountants, Kolkata
Board Committees
Investor Services Committee
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A V Girija Kumar Chairman
P B Ramanujam Member
B Sen Member
K Vaidyanath Member
B Vijayaraghavan Member
B B Chatterjee Secretary
Compensation Committee
S H Khan Chairman
A Baijal Member
S B Mathur Member
H G Powell Member
B Sen Member
Nominations Committee
Y C Deveshwar Chairman
A Baijal Member
S Banerjee Member
A V Girija Kumar Member
S H Khan Member
S B Mathur Member
D K Mehrotra Member
P B Ramanujam Member
Sustainability Committee
Y C Deveshwar Chairman
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S Banerjee Member
H G Powell Member
A Ruys Member
B Sen Member
B Vijayaraghavan Member
B B Chatterjee Secretary
Anup Singh
Krishnamoorthy Vaidyanath
Kurush Noshir Grant
Executive Directors
Anil Baijal
Angara Venkata Girija Kumar
Serajul Haq Khan
Sunil Behari Mathur
Dinesh Kumar Mehrotra
Hugo Geoffrey Powell
Pillappakkam Bahukutumbi Ramanujam
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AWARDS
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ITC`s Cigarettes business has won numerous awards for its quality, environmental management
systems and product excellence.
The Kolkata factory has won the prestigious Genentech Safety Gold Award for the year 2003-
2004 in the manufacturing sector.
ITC`s cigarette factories in Kolkata, Bangalore and munger have been awarded the OHSAS
18001 Certificate by Det Norske VERITAS (DNV) for their Occupational Health and Safety
Management systems(OHSMS).
ITC has been awarded the Best Manufacturer of Cigarettes and 3 Best Exporter of Tobacco
Products for 2003, by the Tobacco Board of India.
The Saharanpur factory has won the GOLD Award, 2003 on Occupational Safety from The
Royal Society for the Prevention of Accidents (ROSPA).
The Kolkata factory was the first cigrate factory in the world to receive the ISO 14001
accreditation for their environmental management systems.
The Saharanpur and Bangalore factories have also received the ISO 14001 certification.
All cigarette factories have ISO 9002 Quality Certification.
The Kolkata factory has won the Rajiv Gandhi National Quality Award (Best in Eastern
Region) for 1998.
The ITC has also received the prestigious Sword of Honors Award from the British Safety
Council for highest standards of safety.
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Mission Sunehra Kal, ITCs rural capacity building programme, now active in 11 States,
empowers rural people communities to sustainable changes that make them
economically competitive and socially secure.
In the rural communities where the mission has put down roots there is a new spirit of optimism
and confidence. People have augmented and diversified their livelihoods. Education for children,
employment for women, sanitation and family health have taken on a new urgency. Every family
and every farm has resources to build a better future. Stagnation and deterioration have given
way to change and improvement.
To accomplish this change, ITC targets four problems, which it believes are the fundamental
obstacles to productivity and growth in the farm sector :
1. Loss of productivity through soil erosion caused by intensification of land use anddecline of water tables and forest resources.
2. Dependence on out-moded farm practices and inferior inputs.3. Loss and disruption of farm incomes and non-availability of alternative livelihoods.
Inadequate access to primary education and healthcare
4. Inadequate access to primary education and healthcare
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ITC enables farmers to implement solutions that are sustainable because they are
1. mutually reinforcing,2. based on knowledge transfer and co-operative application of technology,3. dependent on mobilisation and optimisation of local resources.
The delivery model mobilises a four-way partnership between village communities, specialist
NGOs, the Government and ITC, bringing to every initiative the best relevant management and
technical expertise.
ITC has also worked with State Governments in pioneering public-private partnerships. In
Andhra Pradesh, 3,596 hectares of wasteland have been developed so far through a collaboration
with the State Governments rural poverty reduction project, Indira Kranthi Padham, and its
Comprehensive Land Development programme. ITC has also signed a landmark agreement with
the Government of Rajasthan to bring 5,000 hectares under soil and moisture conservation in the
drought-prone Bhilwara district.
By augmenting water resources and forest cover and fostering organic soil management, ITC
has enhanced farm productivity. It has simultaneously opened up new avenues of non-farm
income and employment to reduce pressure on land.
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RESEARCH PROBLEM
TO ANALYSIS THE SALES & DISTRIBUTION OF AASHIRWAD FLOUR IN DIFFERENT-
DIFFERENT PLACES OF SAHARANPUR CITY AND FIND OUT THE REASON FOR
DECREASE IN IT SALES.AND ALSO FINDS OUT THE DIFFERSENCES BETWEEN ITS
COMPETITORS PRODUCT.
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OBJECTIVE OF RESEARCH
TO ANALYSE THE SALES OF AASHIRVAAD IN THE CITYOF SAHARANPUR.
TO ANALYSE THE DISTRIBUTION OF AASHIRVAAD INTHE CITY OF SAHARANPUR.
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REVIEW OF LITERATURE
DEFINITION OF SALES:
It is a process by which
-one identifies the people, who have a need. [ PROSPECTING]
-one determines the needs of the people.[ NEEDS ]
-one determines a way of finding a solution to the prospect's problem.[ PROPOSE]
-one determines the way of communicating your product as a solution. [RECOMMENDING]
-one determines the value for the product for the prospect.[ ADVOCATING YOUR
PRODUCT].
-one determines / sells benefits of the product to the prospect. [ SELLING BENEFITS]
and then creating a transaction for exchanging the product for
a value. [ CLOSING THE SALE ]
and thus creating a satisfaction to the buyer's needs/wants.
[ CREATING CUSTOMER SATISFACTION]
================================================
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Frequently there may be a chain of intermediaries, each passing the product down the chain to
the next organization, before it finally reaches the consumer or end-user. This process is known
as the 'distribution chain' or, rather more exotically, as the 'channel'. Each of the elements in
these chains will have their own specific needs; which the producer must take into account, along
with those of the all-important end-user
.
DEFINITION OF DISTRIBUTION
THE ACT OF DISTRIBUTION MEANS ; apportionment. Something distributed; over
-The geographic occurrence
-The customers occurrence
-The usage occurence
-Others
The process of distribution of goods/services could include
-logistics
-warehousing
-transportation
-order processing/ servicing
etc etc
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Traditionally, distribution has been seen as dealing with LOGISTICS: how to get the product or
service to the customer. It must answer questions such as:
The two-step channel of distribution is for the producers to give the retail small quantities.
Should the product be sold through a retailer?
Should the product be distributed through wholesale?
Should multi-level channels be used?
How long should the channel be (how many members)?
etc etc
The distribution channel
Channels
A number of alternative `channels' of distribution may be available:
Selling direct
Mail order (including Internet and telephone sales)
Retailer
Wholesaler
Agent (who acts on behalf of the producer)
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HYPOTHESIS
(a) NULL HYPOTHESIS-Sales &distribution is essential for any business. Retailers areSatisfied regarding the sales & distribution of the company. They are satisfied with the
quality of company product & also satisfied with packaging of the company.
(b)ALTERNATIVE HYPOTHESIS: Some retailers are unsatisfied with the sale ofaashirvaad because they told us the rate of aashirvaad is more than other flour product.
So they are unsatisfied.