INTRODUCTION

Marketing is the planning and execution of the production, pricing, promotion, and
distribution of goods and services to create exchanges that achieve individual and business
objectives. Marketing, in economics is that part of the process of production and exchange
that is concerned with the flow of goods and service from producer to consumer. In popular
usage; it is defined as the distribution and sale of goods. When says about retailers, they are
the important part of this marketing activity or the distribution channel of a firm. Retail is the
process of selling consumer goods or services to customers through multiple channels of
distribution to earn profit.

“A distribution channel means the chain of business or intermediaries through which a goods
or services passes until reaches the end consumer”

Success of each company lies on various aspect, among these the distribution channel is the
most important one .Distribution channel is a channel of intermediaries; each passing the
product down the chains to the next organization, before it finally reaches the consumer or end
user. This process is known as the distribution chain or the channel. Each of the elements in
the chain will have their own specific needs. Which the producer should consider, along with
those of the all important end user or consumer. Each company has their own distribution
channel for the product marketing. It differs from one to another. Each company wants to
know satisfaction of distribution channel of its product. If the distribution channel is not
effective, the company cannot perform very well in the market. The company must formula
different strategies for the distribution channel. A company can coordinate and formulate
different activities in the distribution channel.

The study is aimed at analyzing effectivenessof Distribution Channel with Special Reference
to Raidco's Family Curry Powder, Kannur.

Curry Powder is a mixture of spices of widely varying composition developed by the British
during the colonial rule of India as a means of approximately the taste of Indian cuisine at
home. In Indian food items, the spices or curry powder play a prominent role and India has a
lot of spices which are used for the process of curry powder production. So the spices or curry
powder marketing in India has long experience in this field. Customers, mainly in rural areas,

1
depends their nearest retail shops for their daily purchases. So the retailers brand preference
has a vital impact on the firm's existence as well as the consumer's attitude towards the
products. Successful retailing provides the promise of an improved quality of life, better
services to people. Nowadays there are number of alternative products, so the success of any
product depends upon their marketing distribution channels they used and the competitive
advantage the company has in terms of quality, quantity, packing design, etc.

In short, modern marketing begins with the consumer and ends with the consumer satisfaction
and social wellbeing. Under the market driven economy “Consumer is the king.”

1.1 STATEMENT OF PROBLEM.

Raidco Ltd is a Co –operative organization producing curry powders, presently facing

problem in its distribution channel. In this research, an attempt is made to study on

Effectiveness of distribution channel towards Raidco Family Curry powder, and the firm’s

stability in the mind of dealers.

1.2 OBJECTIVES OF THE STUDY

 To understand the distribution channel satisfaction of RaidcoCurry Powder

 To study the level of satisfaction of major channel members of Raidco Family Curry

Powder.

 To identify the major problem associated with the distribution of Raidco Family Curry

Powders.

2
1.3NEED FOR THE STUDY.

With an increase in the competition in domestic market in food processing sector, Raidco

faces threat of losing market share. This study aimed at getting a clear picture of the current

state of affairs in its distribution channel. The intent of this study was to identify factors that

influence supply chain efficiency and effectiveness. Since many of these factors are under

control of the seller, identifying them may help seller to improve the outcome of their sales.

1.4SCOPE OF THE STUDY

This study helps to know about different perception of distribution channel towards the firm.

And also it will help the company to know about their current status and improve satisfaction.

The main scope of the study is to understand the satisfaction of distribution channel of Raidco

Family curry Powder among the dealers.

1.5RESEARCH METHODOLOGY

The study is mainly based on both primary & secondary data:

Primary data

Primary data are data collected only in the field survey by meeting respondent personally &

getting information through a questionnaire, observation and by interviewing.

Secondary data

Secondary data were collected from the company reports, statements, and websites.

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1.6SAMPLING TECHNIQUE

The data was collected from 50 retailers of different localities in Kannur district. Random

Sampling method was adopted in selecting the retailers. The list of retailers was collected

from RaidcoCompany. Based on the information provided by Raidco,simple random method

was followed.

1.7DATA ANALYSIS TOOLS AND TECHNIQUES

Various tools were used for collecting data which are as follows

Questionnaire

Questionnaires wereused to collect relevant information from the respondents in field. Some

questions were open ended. Questions were largely qualitative in nature.

Interviews

Interviews were conducted with retailers to collect their suggestions and their perception on

the quality of curry powder, margin obtained on the product, from the promotional aspects of

the curry powder and challenges in promoting the curry powder in the religion.

Statistical Analysis

“Statistical Analysis” is a process of inspecting, cleaning, transforming and modeling data

with the goal of highlighting useful information, suggestions, conclusions and supporting

decision.

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Tools Used For Analysis

The researches adopted following tools for analysis

Percentage Analysis

Percentage is used in making comparison between two or more series of data. Percentage can

also be used to compare the relative terms, the distribution of two a more service of data.

𝑁𝑢𝑚𝑏𝑒𝑟𝑜𝑓𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛
Percentage= x100
𝑡𝑜𝑡𝑎𝑙𝑛𝑢𝑚𝑏𝑒𝑟𝑜𝑓𝑜𝑏𝑠𝑒𝑟𝑣𝑎𝑡𝑖𝑜𝑛

1.8DURATION OF THE STUDY.

The project is ‘a study on Effectiveness of distribution channel ‘ which was

successfully completed with the time period of 21 days.

1.9 LIMITATION OF STUDY

1. The study is restricted to Kannur district only

2. As the sample size was very small the findings may not be generalized to other regions

3. Some of the respondents were not ready to express their opinion.

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INDUSTRY PROFILE

India is the world second largest producer of food next to china, and has the potential of being
the biggest with the food and agricultural sector. With India's food production to double in the
next decade, there is an opportunity for large investment in food and food technologies, skills
and equipments, especially in areas of canning. Dairy and food processing, specially
processing, packing, frozen food/refrigeration and thermo processing.Fruit and vegetables,
fisheries, milk and milk products, meat and poultry, packaged/convenience foods, alcoholic
beverages and soft drinks sectors of the food processing industry. Health food and health food
supplements are other rapidly rising segments of their industry which gaining vast popularity
amongst the health conscious.

The transition from an area of food scarcity to surplus serves as a witness to tremendous
progress made in this industry .Being one of the largest and most dynamic markets in India,
food has seen rapid growth in most of its segments Increased per capita income and high
corporate interest in the organized retail market creates a platform for the Indian food industry
to leap forward .All participants in this sector, especially looking at market entry and
investment in India, will benefit from this briefing. A highlight of the briefing includes a
political, industry profile, growth drivers and growth opportunities.

With the overwhelming success of the green and white revolution, India is now fervently
poised for the food revolution that will ensure agricultural diversification and large
investments in food processing. The entries of multinationals, aggressive rise of commodity
branding and low cost of technology are changing the economics of the Indian food industry.
The rise aggressive regional players making forays into categories where entry barriers are
low and a boom in India FMCG market and the rising need for these products are the key
reasons for their growth in food business.

Indian agriculture is in the throes of a paradigm shift, thanks to the structural changes in the
Indian economy. With the country achieving self-sufficiency in grains production, emphasis
has changed from subsistence farming to commercialization, opening up vast opportunities for
value-addition, packaging and exports, with strikingly high level of technological
involvement.

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The holistic concept of food security, however, has two dimensions availability of food and
access to food. While the farmer has been achieved, the same is not the case with latter.
Despite bumper a crop, distribution of food grains continues to be faulty almost 30% of the
food produced in the country is wasted. In such a scenario, it is important for us to reorient our
historical agricultural framework-from managing shortage to promoting efficiencies and value
addition. Moreover, there is a need to increase the range of food available to improve overall
nutrition. The benefits in term of health, vitality and productivity are obvious and cannot be
under estimated.

The Indian food market is approximately Rs250000 crore ($69.4 billion),of which value added
food products comprise Rs.80000crore ($22.2 billion).Despite food production in the country
is expected to double by the 2020, not much attention has been given to the growth of their
vital industry, with no standards publication highlighting the importance of this sector.

With food production expected to double by 2020. Large investments are already going into
food and food processing technologies, skill and equipment.

India is one of the world's major food producers but accounts for less than 1.5 %of
international food trade .This indicates vast scope for both investors and exporters .Food
exports in 1998 stood at US $4.8 billion where as the world total was US $438 billion .The
Indian food industry's sales turnover is Rs.140, 000 crore (1 crore=10 million) annually as at
the start of the year 2000.

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MAJOR CHALLENGES FOR THE INDIAN FOOD INDUSTRY

 Low price elasticity for processed food products. Need for distribution network and
cold chain. Backward-forward integration from farm to consumers.
 Development of marketing channels.
 Develop the linkage between industries, government institutions.
 Taxation in line with other nations.
 Streaming of food laws.
 Changes in consumer pattern or increase in income are always accompanied by
available change in food market.

For instance, the proportionate expenditure on staples (grams, cereals, pulses) declined from
45% to 44% in rural India while the figures settled of 32% of the total expenditure on food in
urban India. India is one of the world's major food producers but accounts less than 1.5% of
abundant supply of food, the food processing industry is still nascent, only 2% of fruits spices
and Vegetables and 15% milk produced and processed.

The Confederation of Indian Industry (CII) has estimated that the food processing sector needs
crores of investment in ten years and generates employment of 9 million. The question of
providing financial assistance under the plan scheme for bringing about modernization in the
grain rice/pulses/flour milling sector has been reviewed. The government has formulated and
implemented several plan schemes to provide financial assistance for setting up and
modernization of food processing unit, creation of infrastructure, support for research
development and human resource development. It was felt that priority should be given to
processing and enhancing shelf life of perishable item so as to reduce wastage and encourage
value addition in that sector. Considering that rice/pulses/flour are consumed in the processed
form only and primarily processing in these sectors adds little to shelf life, wastage control
and value addition, it has been decided to discontinue assistance to this sector from financial
year 2004-2004. Priority will be given to fruit and vegetables, diary, meat, poultry, fish,
bakery, confectionary and consumer goods. In order to boost the food processing industry, the
centre has permitted under the income tax Act available deduction of 100% of profit for five
years and 50% of profit in the next five years in case new agro processing industries set up to

8
package and preserve fruits and vegetables. Ministry of Indian food processing industries, set
up in July 1988, is the main and central agency of the government responsible for developing
available strong and vibrant food processing sector with available view to create increased job
opportunities in rural areas, enable the farmer to reap benefit from modern technology, create
surplus for exports and stimulating demand for processed food. Ministry of food processing
industries is also providing financial assistance to all food processing industries.

In order to boost the food sector, the government is working on agri-zones and the concept of
mega food parks. Such mega food park will come across the country in various cities to attract
FIN in the food processing sector. The government approved 105 proposals from foreign
industries to set up and food processing industries in India. The ministry has released available
total assistance of Rs.104.22crores to implement food park scheme. It has so far approved 50
food parks for assistance across the country. The centre also plans Rs.100crores subsidies for
mega food processing parks. India is the land of spices producing all varieties worth over
Rs.3500crores amounting to 25%-30% of world production, which is processed for value
addition and exports. No Indian meal is considered complete without tangy and datable
flavors of Indian spices, locally known as "masalas". Indian spices are famous the world over
for their gastronomic value, are also known to possess high medicinal values.

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COMPANY PROFILE

Name of the company : RAIDCO CURRY POWDER FACTORY.

Established in : 2000 January.

Address : Raidco curry powder factory,

P.O Moonuperia, Mavilayi.

Business Type : Manufacturer, Exporter.

Primary competitive advantage

Preserve its natural lavor, Price, : it ensures clean and hygienic spices
Quality and quantity.

No.of production line : four production lines.

Export markets : UAE, Saudi Arabia,Qatar,etc.

Membership : spices board.

Awards : ISO 9001-2000.

Product range

Mineral water, Curry Powder, : Quality products, spices, spices mix,

Pickles, jam, squash, etc.

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RAIDCO KERALA LIMITED

The regional Agro-industrial Development Cooperative Kerala limited (Raidco Kerala

Limited) a well organized group in Kerala of Co-operative sector under government of Kerala.
Raidco as originally registered as a direct level co-operative society in the name of Cannore
District Agricultural Development.

Co-operative society Limited, No. C561 in the year 1972 RAIDCO renders service to the
farmers and general public and the works with an intention to give quality product in the field
of consumer product and commercial group at minimum cost. The poor farmers who were the
beneficiaries of small farmers development Agency were always being exploited by the
Private Traders by supplying poor quality agricultural machinery at abnormal rate and without
providing after sales service. The subsidy and other financial benefit provided by the
government and the financial banks were not really reached in the hands of the poor farmers
but were enjoyed by the Private Traders by adopting all sorts of malpractices with a view to
make profit illegally.

In this occasion the Government officials, financing banks, social workers, and other veteran
co-operators were forced to find out an alternative by putting an end to these evils. Sri P.M
KuniramNambiar Ex. MLA a veteran freedom fighter and well known social worker was the
chief promoter of this Co-operative. The present chairman of this co-operative is Sri
ValsanPanoli and Managing Director Mr. Manoj Kumar C P.

RAIDCO KERALA LIMITED has 4 production units, 3 service centers and 38 sales outlets
throughout the state which caters the needs of farmers in every nook and corner of Kerala.

REGISTERED OFFICE AND HEAD QUARTERS

The registered office and head quarters of this Co-operative are situated at Kanpur District in
the state of Kerala.

Area of Operation

RAIDCO have branches all over Kerala from the Kasaragod district
toThiruvananthapuram District. However, for conduct of sales and marketing of the product

11
manufactured or dealt in by the co-operative and to develop the infrastructure their if such as
establishing, opening, and running of branches, go downs, showrooms. Service centers,
workshops, etc. and appointment of distributors, stockiest, and carry forwarding agents their
shall be to restriction with regard to the area of operation.

Company Motto:

Motto of RAIDCO KERALA LIMITED is "An intimate friend to a farmer".

Manufacturing units:

RAIDCO KERALA LIMITEDhas four manufacturing units. They are;

1. RAIDCO PUMPSET Manufacturing Unit.

2. RAIDCO RUBBER ROLLER MACHINE Manufacturing unit.

3. RAIDCO FRUIT CANNING.

4. RAIDCO CURRY POWDER Manufacturing unit.

Employees:

At present about 230 employees are working in the head office, branches and the
production units.

RAIDCO SERVICES

• Financial assistance to farmers for selecting the farm machineries.

• Providing mobile workshops.

• Providing original spare parts.

• Providing timely delivery after sales services.

• Provides the product at reasonable rate.

• Ensures supply of high quality products at considerably low rate.

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• 2% purchase bonus and transaction cost is allowed to farmers who purchase pump sets From
RAIDCO.

• Acting as agents of the government departments in properly implementation of various

projects related to drinking water supply schemes, minor irrigation projects.

• Provides expert technical consultation services for site verification and suitable pump sets.

Branches and units:

In order to sell its own products and market the products of other leading brands, RAIDCO
has opened branches and spare parts showrooms throughout the state. The following are the
branches of the RAIDCO.

Manufacturing units:

1. Raidco curry powder factory, Mavilayi, Kannur :

Raidco curry powder factory established in January 2000.Chillypowder,turmeric powder,

coriander powder, chicken meat masalas, putt powder, payasam mix are the main products of
this factory. The products are marked under the brand name "Family" which became an
instant hit in the domestic market In July 2001. It is the first curry powder manufacturing unit
in Kerala getting the ISO 9002 certificate.

2. Raidco pump set manufacturing unit, Kanjikode, palakkad:

Various type of pump sets for domestic and agricultural purpose, copra driers, rubber rollers,
paddy winnowers, power plough, are the main products manufactured in this factory. This
factory got ISO 9002 certificate in December 2000.

3. Raidco rubber roller manufacturing unit, Kannothumachal,

Kannur:

Rubber rollers for the use of rubber cultivators for converting raw latex into rubber sheets are
manufactured at this unit .In addition to this steel furniture, power plough, foundation bolts,
GI barrel nipple are also manufactured at this factory.

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4. Raidco Fruit Processing Unit, Mattanur, Kannur:

This is the first processing unit started by Raidco in the year 1978. Pineapple slices Tidbits,
Juice syrups, lime, garlic, Alma pickles are the main products of this unit. These products are
well accepted by north Indians.

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ORGANIZATION CHART OF RAIDCO CURRY POWDER FACTORY

CHART NO.2.1

Board of Directors

Chairman

Managing Directors

Factory Manager

Finance Administrati Purchase Production Quality Marketing

Department on Department Department Control Department
Department

Account Managers Purchase

Marketing
Executive Officer
Manager

Junior Clerk Quality

Accountant Clerks
Control Area
Production Assistant Manager
Driver In charge

Sales
Officer
Electrician Filter Plant
Supervisors

Workers Unskilled
Workers

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RAIDCO CURRY POWDER FACTORY

On 5 January 2000, Raidco have started a unit for curry powder factory at Mavilayi in Kannur
district, which was inaugurated by the chief minister of Kerala, Late E.K Nayanar. Riadco
have started this unit as a part of diversification of their activity. Earlier Raidco have produced
and marketed industrial products under the brand name "Raidco". Through this unit Raidco
turned to produce fast moving consumer items like curry powder under the brand name
"Raidco Family". A part from curry powder products the company also produce Appampodi,
Putti podi, etc. the curry powder industry has minimum gestation period. The investment in
this type of industry will be comparatively less and the technology utilization is also less.

Raidco curry powder has been developed in assistance with national co-operative
development corporation and the state government. It has presently an investment of 3 crores
as initial investment and I crore as working capital. This industry was set up by Raidco in
consultation with central food technology research institute, Mysore government of India
institution. The company has acquired a capacity to produce good quality food products. For
the same reason it has been recently awarded with ISO 9001-2000 certification from bureau of
Indian standards (BIS).

The building structure of this company include wide processing and production area, separate
go down for raw materials and finished goods, wide laboratory, separate rest room for ladies
and gents and well-built canteen facilities. The company has a very good staff structure and
also have different managers assisted for each department.

The chief executive of this factory is the managing director of Raidco Kerala limited. The
factory manager is responsible for day to day activities of this factory. The company is
administrated by board of directors of Raidco Kerala limited, which belongs from various co-
operative societies. The right to decide the policy would be rest in the hands of board of
directors.

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Brand name:

Brand name of Raidco curry powder is Raidco family'.

Brand Ambassador:

Brand ambassador of Raidco family curry powder is P.T.Usha.

Company Motto:

Motto of Raidco Family Curry Powder is "A humble attempt to touch the nature".

Vision and Mission:

The main aim of Raidco curry powder factory is to play a vital role in controlling the price of
essential commodities especially in the field of food products and also with the effectively
utilizing the abundant agricultural products of state.

RAIDCO aims to achieve its vision of turning into multiphase globally competitive
organization excelling in every spare of activity.

RAIDCO ensures world class quality in all its products ranging from agricultural machineries
to packaged drinking water from pump sets to spice powder and also wheat flour to fruit
products.

Let by professional marginal team and ably supported committed work force. RAIDCO is
now poised to enter a high growth phase, with several new instructors that will take the group
on path of expansion and diversification.

Quality Policy:

To deliver products that met our customers taste.

To get things the first time.

To deliver the best value for money to our customers.

• To continuously invest in our people and technologies to deliver quality product.

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Quality Objective:

 Assuring the products as per specification.

 Marinating and improving the quality through good manufacturing process.
 To stimulate an aggressive quality consciousness among company together.

MANAGEMENT RESPONSIBILITY

Overall in charge of activities

Responsible for implementing quality policy
He will be renewing quality policy
A Managing director He has the authority from board of directors to
implement the quality system in the factory
He is responsible to provide adequate
resources.
He is responsible for training

He is responsible for the day to day activities

of the unit
B Factory manager He is authorized to manage day to day affairs
of the factory
Responsible for providing data for production
C Marketing officer planning
Responsible for marketing of products
Responsible for vendor department and
D Purchase officer purchase of material
Responsible for the activities of stores
E Store in charge department

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 Responsible for the activities of quality
G Quality control officer control department.

Head of department of accounts and

H Accountant administration.

Responsible for establishing,

I Management implementing and sustaining the quality
system as per document procedure.

TABLE NO.2.1

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BOARD OF DIRECTORS

BOARD OF DIRECTORS
1 Sri. Valsan. Panoli Chairman
2 Sri.P K Balan Master Vice Chairman
3 Sri. P Purushotaman Director
4 Sri. N Balan Director
5 Sri. K V Subash Director
6 Advt.P R Jayakumar Director
7 Sri. K KSivadas Director
8 Smt. E K Ayisha Director
9 Smt. KomalaLakshman Director
10 Smt. SubhadraSethunath Director
11 Sri. P V Sunil Director
12 Sri.Rajagopalan Director
13 Sri N Sreedharan Director
14 Sri. A k Balakrishnan Ex office Director
President, Kannur District
Co-operative Bank Ltd, Kannur
15 Sri. C P Manoj Kumar Managing Director

Table No 2.2

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PRODUCT PROFILE

Curry powder is a mixture of a spices widely varying composition developed by the British
during their colonial rule of India.

The word "karhee" or "kadhi" from which "curry' is derived comes from southern India and
refers to a sauce of any kind. "Curry powder" was developed by the British, who wished to
take the taste of the Indian food home, without having to utilize fresh spices. As a result
“curry powder” in the Western world has a fairly standardized taste, but there are literally
millions of curry flavors in India.

Curry powder was largely popularized after World War II, when immigrants from Southeast
Asia moved to the UK. Still, curry powder did not become standardized, as immigrant
household often had their own blends of curry powder.

Curry' is synonymous with Indian food and 'curry powder's thought of as its key ingredient.
This is a misconception though, as all Indian food does not contain `curry powder'. This all-
important powder is actually a mix of spices collectively known as garam masala. It is added
to some dishes along with other spices to enhance their flavor and aroma. While the basic
ingredients used are the same, each household has its own proportions so that the end result
will often differ from home to home. The better the quality of the ingredient, the tastier the
garam masala and the resulting dish in which it is used.

Most Indians still prefer to prepare their own garam masala just prior to cooking. Making your
own can seem intimidating if you're just starting out with Indian cooking, but the recipe and a
good coffee grinder is all it takes!. There's nothing to beat the flavor of fresh garam masala.
The late 60s and early 70s saw a large increase of Indian food consumption by the UK
populace. This also led to an increase of Indian restaurants. The tradition of keeping special
blends of curry powder simply became uneconomical, and curry powder became increasingly
standardized.

Indian cooks often have readier access to a variety of fresh spices than their native UK
counterparts, and are more likely to make their own mixtures. Indeed, most Indian cooks will

21
have their own specific mixture for different recipes. These are often passed down from parent
to child.

Most recipes and produces of curry powder usually include coriander, turmeric, cumin, and
fenugreek in their blends. Depending on the recipe, additional ingredients such as ginger,
garlic, fennel seed, cinnamon, clove, mustard seed, green cardamom, mace, nutmeg, red
pepper, long pepper and black pepper may also be added.

RAIDCO PRODUCTS

1. CHILLY POWDER

2. TURMERIC POWDER

3. MEAT MASALA

4. CORIANDER POWDER

5. SAMBAR POWDER

6. RASAM POWDER

7. PICKLE POWDER

8. CHICKEN MASALA

9. FISH MASALA

10. WHOLE WHEAT ATTA

11. REGULAR ATTA

12. PUTTU PODI

13. APPAM PODI

14. PAPPER POWDER

15. COCONUT OIL

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16. DAHASHAMANI

17. TEA POWDER

18. PALADA

19. SAMIYA

20. PINAPPLE JAM

21. MIXED FRUIT JAM

22. PINAPPLE SQUASH

23. SYRUP

24. TENDER MANGO PICKLE

25. CUT MANGO PICKLE

26. LIME PICKLE

27. MINERAL WATER

23
DEPARTMENTALDETAILS

FINANCE DEPARTMENT

This department maintains a systematic record and control income and expenditure of
the factory. Account officer is the head of this department followed by the financial
accountant department and he is assisted by an assistant account. All financial decision are
taken by the finance department.

ORGANIZATION CHART OF FINANCE DEPARTMENT

BOARD OF DIRECTORS

MANAGING DIRECTORS

FACTORY MANAGER

FINANCE

ACCOUNT EXECUTIVE

ACCOUNTANT

CLERK TYPIST ATTENDER DRIVER

SECURITY

CHART NO.2.2

24
SOURCES OF FINANCE

Company's main sources of finance are,

1. Share capital

2. Deposit from dealers

3. Deposit from staffs

4. NCDC Loan

5. Cash credit

ACCOUNTING POLICIES

I. Fixed assets are valued at cost of acquisition, less depreciation.

2. Depreciation and fixed assets are calculated and provided on straight line method.

3. Investments are valued at cost.

4. Valuation of inventories of finished goods is at cost

25
PRODUCTION DEPARTMENT

ORGANISATIONAL STRUCTURE OF PRODUCTION DEPARTMENT

BOARD OF DIRECTORS

FACTORY MANAGER

PRODUCTION MANAGER

PRODUCTION AND PLANT TECHNICIANS

SUPERVISORS

SKILLED WORKERS UNSKILLED WORKERS

CHART NO 2.3

26
PRODUCTION MANAGEMENT

Production management refers to the application of management principles to the

application of planning, organizing, directing and controlling to the production process.

The application of management to the field of production has been the result of at least
three developments. First is the development of factory system of production. Until the
emergency of the concept of manufacturing, there was no such thing as management as we
know it. It is true that people operated business of one type or another, but for the most part,
these people were owners of business and did not regard themselves as managers as well. The
second essentially stems from the first, namely the development of the large third reason
stems from the work of many of the pioneers of scientific management who were able to
demonstrate the value from a performance and profit point of view, of some of the technique
they were developing.

RAIDCO FAMILY CURRY POWDER

India as the origin of curry, a name widely recognized all over the world. Because of
an individual spice does not produced the preferred forms.india's curry powder is the answer
to it known as "curry powder" to the consumers. The product is the, carefully branded of
selected spices to pep flavors and aroma to a wide range of exotic duties. Some of the
important ingredients in a curry powder are coriander, Turmeric, chilies, pepper, ginger,
cinnamon, cassia, clone, etc. Another Indian specialty is a full complement of spice mixes.
These mixes import a distinct flavor to a variety of food preparation such as chicken, fish
meat, vegetables and noodles. India is the major supplies of high quality curry powders and
spice mixes to the world.

RADICO products include spices powders and masala.theyare prepared under

hygienic conditions in fully automated factory of RAIDCO at Kannur.

Production is a series of process dealing with the concept and technique mental and
physical skill of craft man and consists of changing the shape, size and proprieties of materials
and ultimately converting them into more useful articles. Production management tells how to
manage direct human efforts in a productive environment.The production may be defined as

27
an organized activity of transforming raw materials into finished goods. Production is the
center one in the organizational as it directly with finance, marketing and personnel.
Production of goods and services is a broader one. In general production is equated with
manufacturing which is a myopic interpretation. Fundamentally they look alike. Mainly four
types of production method are widely using.

They are product layout, processing layout, group layout and stationery layout. In a functional
level objective of production department are following:

• Assuring the product is as per specification

• Assuring the stock of finished goods as per stock level.
• Minimizing the wastage of packing material during production.
• Minimizing the breakdown time.
• Minimizing production loss
• Keeping the plant and premises clean

PRODUCTION CAPACITY

200 tone /month are the production capacity. The utilization of the capacity is 100 tone/month.

VOLUME OF PRODUCTION

2007-2008:639 ton.

2006-2007:658 ton.

MAINTENANCE

Preventive maintenance schedule as been prepared and implemented suitable check list
are maintained for maintains on the basis of information received from the production
department. Expedition action is taken for break down maintains. So that it should not affect
the production. Break down checks shows the detail of maintains.

28
PRODUCTION METHODOLOGY

The production methodology followed is this company is batch production is manufactures

depends upon the requirements and is produced batch wise. Each batch will be assigned a
batch number and they are stored in the go down. The materials are moved from the store
according to their respective batch numbers .the basis of products that have the high priority
will be moved out of the store first.

QUALITY CONTROL

QUALITY PLAN

It is the policy of RAIDCO to deliver quality products.

1. RAIDCO will ensure homely delivery of material as per the agreement with
dealers/agents and continual improvement of products based on customer feedback.
2. To continuously invest in our people and technologies to deliver quality products.

QUALITY OBJECTIVES

The management, staff and workers pledge to work as a team to achieve the quality
policy. All the employees will be motivated to stimulate an aggressive quality consciousness.
Emphasis will be on maintaining and improving the quality through good manufacturing
practices and hygienic conditions. We endeavor to the continuous up gradation of quality
through implementation of quality management system standards effectively.

QUALITY MANAGEMENT SYSTEM

The planning of the Quality Management System is carried out to ensure conformance
to the requirement of the system and also to the stated policy and objectives whenever any
change to the Quality Management System is planned and implemented the impact on the
total Quality Management System is analyzed to ensure the integrity of the system as a whole.

29
 REGIONAL AGRO INDUSTRIAL DEVELOPMENT CO-OPERATIVE OF KERALA
LIMITED

RAIDCO CURRY POWDER FACTORY MAVILAYI, PO KANNUR-670662

KERALA

QUALITY PLAN

(CHILLY, CORIANDER AND TURMERIC)

FEED BACK FROM
MARKETING RETURN

MINIMUM STOCK REJECTED

SEND TO LAB
RAW MATERIALS SAMPLING
FOR TESTING
PLAN RAW
QUALITY
MATERIALS
STORES INSPECTION
(AS

AS PER PRODUCTION
PROCEDURE

REJECTED FINISHED GOOD

INSPECTION IN PROCESS
REWORK ACCEPT INSPECTION
ED SPECIFICATION
PACKING (AS PER IIS-01-07)
REJECTED
STORES

DISPOSE
DESPATCH
PHYICAL INPECTION
(AS PER FS-01)

CHART NO.2.4

30
INSPECTION

It is the art of determining conference or non conference of the expected performance or set
standards. By inspection we seek to determine the acceptability or non acceptability of the
parts, products or services. Inspection is carried out in each stage of production.

RAW MATERIAL

Inspection of sample of raw materials is carried out physically. The following parameters are
checked. If it is within the limit the raw materials are accept otherwise reject.

• Extraneous / foreign matter (% of weight)

• Damaged / blackened /insect bored seed (%by weight)
• Light barriers(1% by weight)
• Other seeds (1% by weight)
• Strived and immature seeds(1% by weight)

FINISHED GOODS INSPECTION

• Moisture (% by weight)
• Total ash (% by weight)
• Acid insolvable (%by weight)
• Non-volatile- extracts (% by weight)
• Crude fiber-in case of masalas

The sample is inspected by different authorized labor authorized like

• Spice board
• CFTRI (Central food technological research institute)
• Regional laboratory of AGMARK

31
These authorities checks the quality of samples, according to these norms they give feed back
to the organization.

The following are the flow chart of different powder manufactured in the Raidco and the
various stages at which inspection is done.

PROCEDURE FOR CALIBRATION OF INSPECTION, MEASURING &

TESTING

OBJECTIVE:

To lay down the procedure for inspection, measuring and testing equipment.

SCOPE:

To ensure all inspection, measuring and test equipment arc calibrated periodically.

RESPONSIBILTY & AUTHORITY

Quality control officer is responsible for the above activity.

PROCEDURE:

• Test sieves are calibrated periodically to ensure the accuracy of the measurement.
• The module indicator & digital temperature indicator are calibrated once in a year.
• All other inspection, measuring and equipments are calibrated by external agency
Periodically to ensure the accuracy and precision of the instrument.
• When equipment is found to be out of calibration, records of previous results are also
analyzed for any further action required.
• Medical examinations of all workers are carried out yearly.

32
PERSONNEL DEPARTMENT

One of the important duties of the modem manager is to get things done through people. He
must be interested in the people, the work and the achievement of assigned objectives. To be
effective, he must balance his concern for people and work. In other words, he must know
how to utilize human as well as non human resources while translating goals in to action. It is
in managing human assets that the manager's capabilities are tested fully

DEFINITION

" Personnel management is the planning, organizing, directing and controlling the
procurement, development, compensation, integration, maintenance and reproduction of
human resources to the end that individual organizational and societal objectives are to be
accomplished" —Edwin .B.Flippo

RAIDCO FAMILY CURRY POWDER

Administration department / human resources department at RAIDCO handles all the matters
that related to the employees. Administrative officer is the head of this department who is
directly reporting to the factory manager. This department handles human resource function.

DUTIES OF ADMINISTRATION DEPARTMENT

The responsibility of administration department is mainly to keep the records of attendance of

the staffs and workers. It also includes records of various leaves taken by the employment and
management staffs, calculation of salaries, provident fund, bonus of employees, records of
their other services rules related matter.

EMPLOYEES

Total employees are 60. At present 13 gents staff and 32 ladies staff are working in the
production unit of the factory. Among these 13 gents' staff, 3 are permanent staff and rest of
them temporary workers. All ladies working are casual workers. RAIDCO's technical staff
especially those who working in the area of production are qualified and skilled.

33
RECRUITMENT POLICY

The head office situated in Kannur undertakes the placement. Recruitment is done through
advertisement, written test, interview and selection. Probation period is up I year. Recruitment
is also done from the educational institutions like industrial training is given for employees.
Individual training rewards are kept and maintained properly. Evaluation is on the basis of
ranking

RECRUITMENT & PLACEMENT

The placement of an employee is done by head office. For Recruitment Company

advertisement is in news paper. After that applicant will hence a written test. According to the
marks obtaining in written test, the applicant will have to get a call for interview. Though this
interview applicants are the selected for job. This new employee will have a probation period
up to 1 year. The recruitment is also made from educational institution like industrial training
institute.

TRAINING

The company is undertaking a continuous training schedule .the company is providing job for
training employees .all management staff put under training in particular subject has to submit
the report to the factory manager about to the training .based on the evaluation of ranking
those who are poor they will be given further training .individuals records for training are kept
and maintained properly .the training may be given in central food technological research
institute (CFTRI) spices board.

WAGE AND SALARY ADMINISTRATION

The administration department is responsible for the wage and salary calculation .the salary is
given to the employees according to the Kerala state rule. In LD clerk grade, employees are
given pay scale of Rs.3295 in probation period. After that they will get Rs.80 additional and
38% clearance allowance. Apprentice trainee given a stipend of Rs.1090.

34
The wage is given to the casual workers according to factory wage act. Men are given Rs.225
per day and women workers are draws Rs.225 per day. The driver will give an amount of
Rs.125 per day. He also gets an additional amount of wage for a week.

RETIREMENT

The age of retirement is 58 years. At the time of retirement is the employee will be given
provident fund and pension fund deducted from his salary.

TRANSFER

The various types of transfer are as follows:

• PUNISHMENT TRANSFER
It is practiced as a disciplinary action.
• REQUETED TRANSFER

It is performed at the request of the employees.

• GENERAL TRANSFER It is normally performed during April/may. This will issue

relieving order details of the employee transferred.

WELFARE SCHEME

Various welfare schemes in RAIDCO are as follows:

Workers are provided with provident fund and ESI (employee service insurance) in mainly
deducted from the salary at the rate of 12%. Another deduction from the salary is at the rate of
12% pension benefit. From this 8.33% will be for pension fund. The various facilities
provided for employees are.

• Canteen facility.
• First aid facility.
• Rest room.
• Drinking water facility.
• Latrine facility.
• Urinal facility. (Separately for ladies and gents.)

35
ALLOWANCES

The production workers get Rs.300 as uniform allowance and Rs.20 as working allowance.

BONUS

The company gives bonus at the rate of 8.33%.the rate of bonus will be given up to 20% in the
profitable year.

SAFETY MEASURES

All skilled and unskilled workers engaged in spice area wear uniforms, caps, aprons and hand
gloves. Casual workers wear aprons, caps and hand gloves. Casual lady workers are engaged
in packing wear coats, gloves and caps.

GRIEVANCES

Regular meeting conducted in the factory carries out grievances procedure .suggestions are
accepted from top level as well as lower level of the functions.

TRADE UNION

Trade union is a voluntary organization of workers formed to protect and promote their
interest through collective action. The following are the main trade union existing in RAIDCO
curry powder unit.

• KCEU-Kerala co-operative employee trade union (CITU).

• KCEF-Kerala co-operative employee front (INTUC).

LEAVE SYSTEM

In RAIDCO leaves allotted to the workers are in three types .these leaves include 15 casual
leave, earned leave of 20 day. In the ratio 18:1 of 10 days.The administration department
allots the leave with the sanction of the factory manager. The administration department will
keep a leave register for the employees and yearly leave statement.

36
DISCIPLINARY ACTION

Company will take some disciplinary action in case of any fault from employees. The
disciplinary actions include loose on pay and suspension .factory manager is responsible for
the day to day activities of the organization. if any employee made fault like behavioral factor
,mal practice ,etc. factory manager can take necessary action mentioned above.

SHIFT OF WORKING HOURS

General shift-9:00 am 5 to pm.

First shift-6:00 am to 2:00pm.

Second shift-2:00 am to 10.00 pm.

Third shift (if necessary)-10.00 pm to 5.00 am.

Ladies are allowed on general shift only. Lunch break is from 1.00 pm to 1.30 pm. There are
two breaks in the morning and evening for general shift at 11.00 am and 3.30 pm respectively.
There are also office brakes at 8.30 pm and 4.00 pm for first and second shift respectively.
The shift may be changed from week to week.

37
 PROCESS FLOW CHART

CHILI CORIANDER WHILE PUTTUPODI/ MASALA

POWDER /TURMERIC/ WHEAT APPAMPODI
PEPPER

POLISHING
ROASTINO

GRINGING
GRINDING

SIFTING BLENDING

PACKING

DISPATCH

CHART NO.2.5

38
MARKETING DEPARTMENT

Marketing is concerned with all activities which are involved in the process of IL transferring
goods from point of production to the point of consumption.

"Marketing is social and managerial process by which individuals or groups obtain what they
need and want through creating and exchanging products and value with others".

RAIDCO FAMILY CURRY POWDER UNIT has a very good marketing: LT: and sales
department. They are doing their marketing all over Kerala in a systematic way and also
marketing their products in gulf countries also. Marketing departmentworking in good
systematic way that gives them good result .RAIDCO has the marketing area all over the
Kerala .through dealer network company has district wise are representatives under this they
have taluk wise area distribution.

MARKETING FUNCTION

The process of marketing involves several interdependent activities. These ill-•-• activities are
collectively known as "MARKETING FUNCTION".

Marketing function will help to move goods from place of production to the place of
consumption.

Marketing function is defined as "An act of operation or service of which original producer
and the final consumers are linked.

Marketing function include

• Functions of research.

• Functions of exchange IL,

• Function of physical supply.

• Facilitating function

39
ORGANIZATIONAL STRUCTURE OF MARKETING DEPARTMENT

BOARD OF DIRECTORS

CHAIRMAN

MANAGING DIRECTOR

FACTORY MANAGER

MARKETING
DEPARTMENT

MARKETING MANAGER

AREA MANAGER

SALES OFFICER

SALES EXECUTIVE

40
OBJECTIVES OF PROMOTION BY RAIDCO

 TO COMMUNICATE: communication is the basis of all marketing efforts. So the

main Objective of promotion is to communicate i.e.to inform the customers or
prospective consumers about the availability, features and uses of the firms products.
 TO COVINCE: it is enough merely to communicate information to the consumers
about the products.
 TO MOTIVATE: another important objective of promotion is to motivate the
consumers to purchase the seller products.
 TO DIFFERENTIATE: one of the important objective of promotion is to differentiate
the product of competitors by highlighting the unique features of the product and
creating brand loyalty.
 TO STABILIZE SALES: another important objective of promotion is to stabilize the
sales of firm by reducing the fluctuation or variations in sales caused by seasonal or
irregular factors.

PURCHASE DEPARTMENT

The purchase of required raw material of right quality is the responsibility of the purchase
department. This department is under the control of purchase manager, works in close
association with the quality control department accounts department and stores.

The head of the purchase department of RAIDCO curry powder is purchase officer. Purchase
department is responsible for all the purchase related to the factory which includes raw
materials, machine parts, and new machines. The purchase system starts from the intend in the
prescribed format given by the respective department according to their requirement. As per
ISO norms the supplier of the raw material should be an authorized supplier. Purchase
department should be responsible for the timely supply of all item required in the factory. It
should also find new supplies, raw materials, peak seasons for each item, comparative study of
quality price and quality is according to\ the present market scenario.

41
STORE DEPARTMENT

Store department releases required item for representative department whenever it department
reports to the purchase department whenever the stock level reaction minimum level. The
purchase department transfers the purchased item to the stores. The production and
maintenance department repost more requirements in "Goods Requisition Notes" to the store
department. after getting this notes ,the store department issue the item with" Goods Issue
Notes" it also releases finished gods to the dispatch department. Whenever supply order
comes from the dealer. The important function of the store department is checking and
cleaning the raw materials coming into the go down on purchase order. After receiving the
materials the store department prepares goods received note.

ITEM INCLUDED IN STORES

1. Raw materials-chilly, turmeric, spices, coriander, etc.

2. Packing materials.

3. Finished goods.

4. Consumer spares.

42
DISTRIBUTION CHANNELS ORGANIZATION AND STRUCTURES

Marketing channel decisions are among the most important decisions that management faces
today. Indeed, if one looks at the major strategy of the marketing mix (product, price,
promotion and distribution), the greatest potential for achieving a competitive advantage now
lies in distribution (Obaji, 2011).

Distribution, as one of four elements of marketing complex, is an inseparable part of

marketing decisions which involves all the decisions about distribution of products to the end
user. The issues of distribution were analyzed by a number of marketing specialists (Berman,
1999; Kim, 1996; Delton, 1997; Frazier, 1999; Kotler, 2003; Rosenbloom, 1999; Stern, 2006;
etc.), paying a big attention to the elaboration of the procedures of marketing channel
design (Gudonaviciene&Alijosiene, 2008).

Distribution still offers a new frontier for competing successfully, especially if the emphasis is
placed on the design and management of superior marketing channel systems to provide
excellent customer services. Yet designing optimal marketing channel systems to boost sales,
formulating innovative distribution strategies and managing channels system effectively is no
simple task. (Obaji, 2011)

The very earliest formal conceptions of marketing channels focused on the functions
performed by a distribution system and the associated utility of these functions and the overall
system. Reflecting their presence in industrial and transitional

economies, marketing channels gradually came to be viewed as the set of interdependent

organizations involved in the process of making a product or service available for use or
consumption (Coughlin, Anderson, Stern, & El-Ansary, 2001). This institutional oriented
perspective draws attention to those members (e.g. wholesalers, distributors, retailers, etc.)
comprising the distribution system and engaged in the delivery of goods and services from the
point of conception to the point of consumption (Anderson & Coughlan, 2002). The
management of such institutions through marketing channel management involves the
planning, organizing, coordinating, directing and controlling efforts of channel
members (Gundlach et al, 2006).

43
In general, the concept of distribution refers to where and how product and services are to be
offered for sale, all essential mechanism and logistical supports for the transfer of goods and
services as well as ownership of goods and services to the customers (Stern et al, 2006). A
successful marketing channel ensures that a desired product is distributed in a desired amount
to a desired channel to satisfy the desired consumer (Kotler& Keller, 2009).

One of the initial problems encountered when the area of integrated distribution is discussed is
the problem of definition. No single "model" distribution system can be tailored for all
business firms. The distribution function, like other functions of the firm, must be developed
within the framework of management philosophy and available resources of the individual
firm. During the 1960s, three characteristic or identifiable approaches to integrated
distribution management have emerged. They are: physical distribution management,
materials management and business logistics. (La Londe, Grabner, & Robeson, 1993).

Research devoted to channel management has played an important role in the marketing
discipline for over 40 years. Two main areas of channels research in marketing have evolved.
First, how channels are organized or structured has been a focal point, centering on the level
of channel integration, reliance on multiple channels, distribution intensity and organizational
policies relating to centralization, formalization, standardization, and surveillance (cf.
Dwyer & Oh, 1988; John & Weitz, 1988; Fein & Anderson, 1997; Shervani, Frazier &
Challagalla, 2007). Second, how ongoing channel relationships are coordinated in a
behavioral sense has been even more prominent, dealing with methods of channel governance,
including the impact of contracts, the development and application of interfirm power,
communication approaches, levels of control and conflict, and the attainment of trust and
commitment (cf. Frazier, 1983; Anderson & Weitz, 1992; Boyle, Dweyer, Robicheau and
Simpson, 1992; Morgan and Hunt, 1994; Kumar, Sheer and Steenkamp, 1995; Lusch and
Brown, 1996).

Development of Channel Structure

A channel of distribution can be defined as the collection of organization units, either internal
or external to the manufacturer, which performs the functions involved in product marketing.

44
These functions are persuasive and include buying, selling, transporting, storing, grading,
financing, market risk bearing and providing marketing information. A channel member is an
individual organization unit institution or agency that performs one or more of the marketing
functions and by doing so has an active role in the channel of distribution (Lambert, 1978).

The marketing channels literature has given considerable attention to the study of channel
structure. Early researchers discussed channel structure in terms of the functions performed by
channel members (Mallen, 1973). The basic idea was that these functions could be allocated
in different mixes among the various channel members depending on the characteristics of the
channel. As structure research evolved, several common elements emerged, which were seen
as varying across different channels, including: the number of channel levels (i.e., number of
intermediaries involved), the intensity at the various levels (the number of intermediaries at
each level of distribution), and the types of intermediaries at each level (i.e., retailers,
wholesalers, distributors) (Rosenbloom B. , 1987). Thus, channel structure was essentially
treated at a micro level, rather than examining the more macro issues such as: how firms
decide who will perform what activities, the costs and trade-offs involved in using various
channel strategies, and various extraneous factors affecting channel relations.

Starting from the 70’s, tremendous strides have been made in the understanding of how firms
should organize and manage their channels of distribution. Still, the researchers have barely
touched the surface of all the managerial issues that have been addressed. Furthermore, many
issues of managerial importance relating to the organization and management of channels of
distribution have received no attention in empirical research (Frazier, 1999).

More recent research in channel structure examines both macro and micro issues. The
majority of the current research on channel structure focuses on one of two broad
operationalizations of structure: transactional form or bureaucratic form. Though it could be
argued that the degree of relationalism also reflects the structure of the relationship,
transactional form and bureaucratic form are the most widely accepted (Brent, 2007).

45
Physical distribution

Physical distribution has been acknowledged as being an important component of channel

management (cf. Frazier, Spekman & O’Neal, 1988; Coughlan Anderson, Stern & El-ansary,
2006). However, relatively little attention has been paid to physical distribution function in
channels research within the marketing literature. The general topic has received more
emphasis in other literatures, such as in operations management, logistics, transportation,
purchasing and information technology, with a general focus on how product orders can be
efficiently and effectively processed, and then delivered to channel members and end-
customers. Among the main areas of interest have been inventory management, the number
placement, and design of warehouses or distribution centers, the use of technology to aide in
processing orders, delivery options to customers, and customer payment methods(cf. Innis and
laLonde, 1994; Emerson and Grimm, 1996; Giannakis and Groom, 2004; Giunipero, Hooker,
Joseph-Matthews, Yoo and Brudvig, 2008).

The lack of attention to physical distribution in channels research in marketing is unfortunate.

Physical distribution functions will impact both channel organization and the manner in which
channel relationships are coordinated over time. More clarity is necessary on the role of
physical distribution functions within the general domain of channel management (Frazier,
2009).

The role of power in distribution channels

Channels of distribution can be viewed as social systems comprising a set of interdependent

organizations, which perform all the activities (functions), utilized to move a product and its
title from production to consumption (Stern & Neskett, 1969; Stern, 1971). Because of this
interdependency there arises a need for some form of co-operation between channel members
and co-ordination of activities. This co-operation and co-ordination is necessary in order to
ensure predictability and dependability between members which will allow individual
organizations to plan effectively. Also, conflict arises in channels, because members
sometimes have incompatible goals, differing ideas as to the functions each should perform,

46
and differing perceptions of reality. This conflict needs to be controlled so that it does not
disrupt channel functioning (Wilkinson, 1996).

Power or, rather, the use of power by individual channel members to affect the decision
making and/or behavior of one another (whether deliberate or not), is the mechanism by which
the channel is organized and orderly behavior preserved. This is not meant to imply that
organizations necessarily set out deliberately to organize the channel, but that this
organization of the channel arises out of individual organizations adjusting their behavior to
one another in relation to the power they each have and use. However, in some channels,
firm(s) may assume a leadership role and make deliberate attempts to organize the channel,
making use of their power. Power is the means by which cooperation between individual
channel members' activities are coordinated and the means by which any conflict between
firms is controlled (Stern & Neskett, 1969; Stern, 1971; Wilkinson, 1973).

Strategic choice in distribution channels

Though the field of marketing, in general, has adopted a strategic perspective, one particular
area, distribution channels, has been relatively slow to embrace this perspective. Besides
research on the manipulation of power and influence attempts, little attention has been given
to the study of channel strategies. The importance of marketing channel strategy decisions is
highlighted by 1) their inherent long-term consequences and 2) the constraints and
opportunities that they represent (Dwyer & Welsh, 1985). The development of relationships in
a marketing channel often takes a great deal of time and effort. Therefore, any decisions made
concerning these relations take on added strategic importance. Given this, the incorporation of
strategic management theory is very relevant to the study of distribution channels (Brent,
2007).

Multiple channels

The use of multiple channels of distribution is now becoming the rule rather than the
exception, given the fragmentation of markets, advancements in technology, and heightened
interbrand competition, among other things. While multiple channels potentially increase the
firm’s penetration level and raise entry barriers, interbrand competition and intrachannel

47
conflict may become major problems, leading to lowered levels of support in the firm’s direct
and indirect channels. Such possibilities remain largely unexplored. While John and Weitz
(1988) and Klein et al. (1990) examined the use of multiple channels to a degree, only Dutta et
al. (1995) have focused an empirical study on the construct. Their major finding is that
augmenting an indirect channel with a direct channel improves the manufacturer’s ability to
manage the indirect channel (Frazier, 1999).

48
 THEORETICAL FRAMEWORK

A distribution channel in marketing refers to the path or route through which goods and
services travel to get from the place of production or manufacture to the final users. It has at
its center transportation and logistical considerations. Channels of Distribution means the
intermediaries or the process through which the products are transferred from the producers to
ultimate users. They are distributors, retailers, agents, bankers etc. A channel of distribution or
marketing channel is the structure of intra-company organization units and extra company
agents and dealers, wholesaler and retailer through which a commodity, product or service is
marketed. The distribution channel is the movement of goods and services between the point
of production and point of consumption through organization,that perform a variety of
marketing activities. Thus, distribution is the application of motion to materials as they move
from the times, places, forms and conditions where they have no value, to the times, places,
forms and conditions where they have value. Most businesses use third parties or
intermediaries to bring their products to market. They try to forget a "distribution channel"
which can be defined as "All the organizations through which a product must pass between its
point of production and consumption"

Channel objectives are a part of and result from the company's marketing objectives that need
to be stated in terms of targeted service output levels. Profit considerations and asset
utilization must be reflected in channel objectives and the resultant design. It should be the
Endeavour of the channel members to minimize the total channel costs and still provide with
the desired level of service outputs.

Marketing channels are key because they are the means of making goods and services

Available to ultimate users. Four functions of marketing channels:

 Channels facilitate the exchange process by reducing the number of marketplace

contacts necessary to make a sale.
 Distributors adjust for discrepancies in the market's assortment of goods and services
via sorting, channeling products to meet the buyer's and producer's needs.

49
  Channel members tend to standardize payment terms, delivery schedules, prices,
purchase lots, and other conditions.
 Channels facilitate searches by both buyers and sellers and bring them together to
complete the exchange process.

TYPES OF MARKETING CHANNELS

Most channel options involve at least one marketing intermediary, an organization that
operates between producers and consumers or business users.

• A retailer owned and operated by someone other than the manufacturer of the Products
it sells.
• A wholesaler who takes title to the goods it handles and then

Distributes these goods to retailers, other distributors, or sometimes end consumers. • Service
firms market primarily through short channels because they sell intangible products and need
to maintain personal relationships within their channels.

50
 DATA ANALYSIS AND INTERPRETATION

Analysis refers to the computation of certain measures along with searching for patterns of
relationship that exist among data groups, while interpretation refers to the task of drawing
influences from the collected facts after an analytical study.

The data collected by way to primary survey from among 50 distributors has been computed using
simple percentage analysis. The analyzed data has been presented in tabular from for easy viewing.
The tables are supported using bar diagrams and pie charts. The detailed analysis is presented in this
chapter.

51
5. DATA ANALYSIS AND INTER PRETATION
TABLE NO: 5.1 Years of Experience with Raidco

Particulars Number of Percentage of

Respondents Respondent
1-3 Years 21 42
3-5 Years 12 24
5-8 Years 4 8
8-10 Years 10 20
10 and Above 3 6
Total No of respondents 50 100
Source: Primary data
Figure no: 5.1 Years of Experience with RAIDCO

45

40

35

30

25

20 42

15
24
10 20
5 8 6
0
1-3 Years 3-5 Years 5-8 Years 8-10 Years 10 and
above

Source: Table 5.1

INTERPRETATION

The above table shows that 42% dealers having 1-3 years of experience with the Raidco. Only
6% dealers have 10 and above experience Raidco. Hence it can be inferred, that most of the
dealers are satisfied with the Raidco Family Curry Powder.

52
TABLE NO 5.2 DEALING WITH OTHER COMPANIES.

Particulars No. of Respondents Percentage of

Respondents
No 48 96
Yes 2 4
Total No of Respondents 50 100
Source: Primary Data

FIGURE NO: 5.2 Dealing with other companies.

100
90
80
70
60
50
40
30
20
96%
10
4%
0
No Yes

INTERPRETATION

The above table shows that 96% of the respondents are not dealing with other company. Only
4% are dealing with other curry powder company. They are satisfied with RAIDCO. Hence it
can be inferred that majority of the dealers are dealing with RAIDCO curry powder company.

53
TABLE NO: 5.3 OPINIONS ABOUT QUALITY OF PRODUCT

Particulars No.of Respondents Percentage of

Respondents
Very Good 4 8
Good 42 84
Satisfactory 4 8
Total No Respondents 50 100

Source: Primary Data

FIGURE NO: 5.3 Opinion about Quality of Product

90

80

70

60

50

40 84%

30

20

10
8% 8%
0
Very Good Good Satisfactory

Source: Table 5:3

INTERPRETATION

The above table shows that out of 50 respondents 84% are said that the quality product in
Raidco is good. Hence it can be inferred that the majority of the dealer are saying good about
quality of the products provided by RAIDCO and no respondent have any negative opinion
about Raidco products.

54
TABLE NO 5.4 REASON FOR DEALER IN RAIDCO

Particulars No. of Respondents Percentage of

Respondents
Company Policy 2 4
Promotion Schemes 21 42
Brand Name 25 50
Margin 2 4
Total no of Respondents 50 100
Source: Table 5:3

FIGURE NO: 5.4 Reason for Dealer in RAIDCO

Reason for Dealer in RAIDCO

0

4% 4%

Company Policy
Promotion Schemes
42% Brand Name
50% Margin

INTERPRETATION

The above table shows that 50% dealer are said that they are become dealer only because of
brand name. 42% dealers preferred promotion of the Raidco. Remaining are preferred
company policies and others. Hence it can be referred that most of the dealers in Raidco prefer
the brand name and promotion of the organization.

55
TABLE 5.5 OPINIONS ABOUT PRICE OF RAIDCO PRODUCTS

Particulars No of Respondents Percentage of

Respondents
Average 12 24
Low 36 72
Very Low 2 4
Total no. of 50 100
Respondents
Source : Primary Data

80

70

60

50

40
24%
30

20

10 24

0 72%
average low very low

FIGURE NO: 5.5 Opinion about Price of Raidco Products

INTERPRETATION

The above table shows that 72% dealers opinion is price of the Raidco product is low. They
are satisfied with that. But 24% dealers said that the price of the product is average. So we can
say that dealers didn’t face any problems in the case of price of product.

56
TABLE NO:5.6 PROMOTIONAL ACTIVITIES PREFER WITH RAIDCO.

Particulars No. of respondents Percentage of

respondents
Discount 38 76
Gift prize 7 14
Offers 4 8
Others 1 2
Total no of Respondents 50 100
Source: Primary Data

FIGURE NO: 5.6 Promotional activities prefer with RAIDCO

80

70

60

50

40 76%

30

20

10 14%
8% 2%
0
Discount Gift prize Offers others

INTERPRETATION

The above table shows that, 76% dealers have one opinion which is the promotional activity
prefer with RAIDCO is discount. Remaining respondents are prefer gift prize , offers etc. So it
says that most of the dealers are become happy when company allow discount as the
promotional activity.

57
TABLE NO 5.7 OPINIONS ABOUT TIMELINESS

Particulars No of Respondents Percentage

of Respondents
Yes 39 78
No 11 22
Total 50 100
no of respondents
Source: primary data

FIGURE 5.7 opinions about Timeliness of Product Supply in Raidco

90

80

70

60

50

40 78%

30

20

10 22%

0
Yes No

Source Table 5.7

INTERPRETATION

The above table shows that 78% dealers are satisfied with the time of supply. In their opinion
RAIDCO is supplying quantity of products in time.

58
TABLE NO.5.8 FACTORS WHICH EXPECT FROM RAIDCO

Particulars No of Respondents Percentage of respondents

Promotional Sales 26 52
Follow up scheme Service 8 16
Credit facility 6 12
Delivery on time 10 20
Total no of respondents 50 100
Source Primary data

FIGURE NO: 5.8 Factors which Expect from RAIDCO

60

50

40

30
52%
20

10 20%
16%
12%
0
Promotional Sales Follow up scheme Credit facility Delivery on time
Service

Source: Table 4.11

INTERPRETATION

The above table shows that 52% dealers expect promotional sales from the company. Another
20% dealers expect delivery on time and 12% respondents prefer credit facility. So, we can
say that most of the dealers expect promotional sales from the company.

59
TABLE NO. 5.9 DEALERS COMPLAINTS ABOUT RAIDCO

Particulars No of respondents Percentage of

Respondents
Yes 8 16
No 42 84
Total no of 50 100
Respondents
Source : Primary Data

FIGURE NO: 4.12 Dealers Complaints about RAIDCO

16%

Yes
No
84%

INTERPRETATION

The above table shows that 84% dealers have no complaints about RAIDCO. Only 16%
dealers have complaints. So we can say that most of the dealers are satisfied with RAIDCO
family curry powder.

60
TABLE NO. 5.10 RECOMMENDATIONS TO CUSTOMERS ABOUT PRODUCT

Particulars No of Respondents Percentage

of Respondents
Yes 40 80

No 10 20

Total no of 30 100
Respondents
Source : Primary data

FIGURE NO: 5.10 Recommendations to customers about Raidco Product.

90

80

70

60

50

40 80%

30

20

10 20%

0
Yes No

INTERPRETATION

The above table shows that, 80% respondents are recommended to customers about RAIDCO.
It will helps the organization in increasing the sales and productivity. But remaining 20%
dealers are not recommended.

61
TABLE NO:5.11 OPINION ABOUT AFTER SALE SERVICES GIVENBY RAIDCO

Particulars No. of Percentage of

Respondents Respondents
Fully satisfied 4 8
Partially Satisfied 19 38
Neutral 27 54
Total no.of 50 100
Respondents
Source: Primary data

FIGURE NO: 5.11 Opinions about after sale services given by RAIDCO

60%

50%

40%

30%
54%
20%
38%

10%
8%
0%
Fully Partically Neutral
satisfied Satisfied

Source: TABLE 5.11

INTERPRETATION

The above table shows that, out of 50 respondents, 8% are fully satisfied with the after
sale service and 54% dealers have neutral satisfaction towards after sale services are
satisfied with the after sale services provided by RAIDCO.

62
TABLE NO: 5.12 MONTHLY ORDER SIZE OF RAIDCO CURRY POWDER

Particulars No. of Respondents Percentage

of Respondents
Rs 500-1000 10 20
Rs 1000-3000 23 46
Rs 4000-5000 11 22
Rs 5000-6000 6 12
Total no of 50 100
Respondents
Source : Primary data

FIGURE NO.5.12 Monthly order size of Raidco Curry Powder.

MONTHLY ORDER

12% 20%

22% Rs 500-1000
Rs 1000-3000
Rs 4000-5000
46%
Rs 5000-6000

INTERPRETATION
The above table shows that the order size of 46% respondents fall in the range
of Rs 1000-Rs 3000, 22% in the range of Rs 4000-Rs 5000, 20% in the range of Rs
500-Rs 1000, 12% in the range of Rs5000-Rs 10000. Hence it can be inferred that the
order size of majority of dealers falls in the range of Rs 1000-Rs 3000.

63
TABLE NO:5.13 FREQUENCY OF DISTRIBUTORS VISIT TO OUTLETS

Particulars No. of Respondents Percentage of

Respondents
Weekly 38 76
Fortnightly 8 16
Monthly 4 8
Total no of 50 100
Respondents
Source: Primary data

FIGURE NO. 5.13 Frequency of distributors visit to outlets

80

70

60

50

40
76%

30

20

10
16%
8%
0
Weekly Fortnightly Monthly

INTERPRETATION

The above table shows that 76% of the distributors visit the outlet once in a
week; 16% of the distributors visit once in a fortnightly, and 8% of the distributors
visit once in a month. Hence it can be inferred that majority of the distributors visit the
outlet on a weekly basic.

64
TABLE NO.5.14 PERCEPTION ON THE SERVICES PROVIDED BY THE
DISTRIBUTORS.

Particulars No. of Respondents Percentage

of Respondents
Fully satisfied 18 36
Partially satisfied 12 24
Neutral 20 40
Total no of respondents 50 100
Source : Primary data

FIGURE NO. 5.14 Perception on the services provided by the distributors.

36%
40%
Fully satisfied
Partially satisfied
Neutral

24%

INTERPRETATION

The above table shows that out of 50 respondents 36% are fully satisfied with the
services provided by the distributors. And 40% dealers have neutral satisfaction
towards the services provided by the distributors. Hence it can be concluded that
dealers are satisfied with the services provided by the distributors.

65
TABLE NO.5.15 OPINION REGARDING THE EARNINGS FROM THE RAIDCO

Particulars No. of Respondents Percentage of

Respondents
Fully satisfied 28 56
Partially satisfied 12 24
Neutral 9 18
partially dissatisfied 1 2
Total no of respondent 50 100

Source: primary data

FIGURE NO.5.15 Opinion regarding the earning from the Raidco

60

50

40

30
56%

20

24%
10 18%

0 2%
Fully satisfied Partially satisfied Neutral partially
dissatisfied

INTERPRETATION

The above table shows that, out of 50 respondents, 56% are fully satisfied with
the earnings from Raidco and 18% have neutral satisfaction with the earnings from
Raidco products. Hence it can be concluded that, dealers are satisfied with the earnings
from the Raidco family curry powder.

66
FINDINGS

1. It is found that majority of retailers have held dealership for a period between one to three
years.
2. It is found that majority of retailers are dealing with RAIDCO Curry powder.
3. It is found that majority of the retailers are of the opinion that RAIDCO producers offers
the best quality.
4. Majority of the retailers RAIDCO prefer the brand name and promotion schemes of the
organization.
5. It is seen that majority of the retailers feel that price of the RAIDCO product is low.
6. Majority of the dealers are become happy when company allow discount as the
promotional activity.
7. It is found that 78% of retailers are satisfied with the time of supply. So we can say that
majority of dealers are satisfied with the timeliness of RAIDCO.
8. It is found that majority of the dealers expect promotional sales from the company.
9. It is found that majority of the dealers have no complaint about RAIDCO family curry
powders
10. Majority of dealers are recommended to customers about RAIDCO. It will helps the
organization in increasing the sales and productivity.
11. It is found that majority of the dealers have neutral satisfaction with the after sale service
provided by RAIDCO.
12. It is found that order size of majority of the dealers falls in the range of Rs 1000 – 3000
distribution visit the outlets on a weekly on a weekly basis.
13. It is found that majority of the distributors visit the oulets on a weekly basic.
14. It is found that majority of dealers are satisfied with the service provided by the
distributors.
15. It is found that majority of dealers are satisfied with the earnings from the Raidco family
curry powder.

67
SUGGESTIONS

1. Raidco has to take effective measurers to compete with other leading brands and to exit in
the market
2. Since there is no issues in quality of products, company has to adopt strategies promoting
the sales
3. Raidco should provide advertisement and more other promotional offers (mainly TV
advertisements) for the publicity and easy identification by the consumers
4. For attracting upper class customers from can make better packaging
5. Firms can offer discount schemes for attracting retailers.
6. Firm needs to improve its delivery system by using efficient means of distribution and
timely order taking from retailers.
7. Firms can appoint executives for collecting customer feedback which will help for
understanding the product status and brand image
8. It was observed that the RAIDCO products are not available in all area and all dealers
whenever they required the products. It may lead to customer dissatisfaction .So the
company must ensure that all the products are delivered and reached them to the dealers.
The company should manage all areas equally and effectively.
9. Try to improve market share by attracting more customers by providing various kinds of
offers.
10. Company should improve their brand image in outside Kerala.
11. The company may conduct exhibition at regular interval to make aware of Raidco food
product

68
 CONCLUSION

The study on effectiveness of distributions Channel at Raidco carry power helped me a lot to
understand much information about their distribution channel. I understand many factors
which are influencing the operation of Raidco such as distribution channel, promotional
activities etc. From the study it is clean that, Raidco has to improve its marketing techniques
to make it a number one brand in the market. As a co-operative organization Raidco undertake
necessary activities which are helpful to the society such as they provide wide variety of
product with medium cost, maintain quality products, good distribution channel etc. Raidco
also achieve a high rate of customer satisfaction and maintain a good customer relationship.
The effective distribution channel will act as a tool for future growth and expansion of Raidco.

69
BIBLIOGRAPHY

BOOKS

1. KOTHARI C R , Research Methodology, New age International Ltd., New Delhi

2. RAMASWAMY. T , Principal of Management, Himalaya Publishing House, Mumbai.
3. BHATTCHAYA D K, (2006) 2nd edition, Research Methodology
4. PHILIP KOTLER & GARY ARMSTRONG, Principals of Marketing

WEBSITES

1. www.raidcokerala.com
2. www.foodindustry.com
3. www.wikipedia.com

OTHERS

1. Official Documents
2. Direct personal Interview with distributors and retailers

70
 QUESTIONNAIRE

Name :

Gender :

Male

Female

Age Group :

Below 20 Years

20-30 Years

30-40 years

40-50 years

Above 50 years

1. How long you are dealing with Raidco curry powder?

1-3 years 3-5years
5-8 years 8 and above
2. Are you dealing with other companies?
Yes No
3. How do you feel about quality of RAIDCO products?
Very good Good
Satisfactory Poor
4. Which factor enables you to be the dealer of RAIDCO Products?
Promotion schemes Company Policy
Margin Brand name
5. How do you rate price of RAIDCO products compared with the competitors
Very High High
Average Low

71
6. Which type of promotional activity do you prefer with RAIDCO?
Discount Gift prize
Offer Others
7. Whether the expected quality of RAIDCO products is supplied to you in time?
Yes No
8. What are the factors that you expect from RAIDCO?
Promotional Sales Follow up scheme Services
Credit Factory Delivery on time
9. Do you have any complaints about RAIDCO products?
Yes No
10. Do you recommend about RAIDCO products?
Yes No
11. What do you feel about after sales service given by RAIDCO?
Fully satisfied partially satisfied neutral
Dissatisfied Fully Dissatisfied
12. What is your monthly order size of Raidco Curry Powder?
500-1000 1000-3000
3000-5000 5000-10000
13. How many times does your distributor visit outlet?
Weekly Fortnightly Monthly
14. How would you rate the services of your distributor?
Fully satisfied Partially Satisfied Neutral
Partially Dissatisfied Fully Dissatisfied
15. What is your opinion regarding the earnings from Raidco compared to other brands?
Fully Satisfied Partially Satisfied Neutral
Partially Dissatisfied Fully Dissatisfied

72
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