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Chapter-I: 1.1 Background of The Study
Chapter-I: 1.1 Background of The Study
INTRODUCTION
This five decade old company established in 1963 initially for the purpose of
regularizing the distribution of salt within the country, has now diversified to
sourcing and distributing numerous essential items mostly on the behest of the
Government of Nepal.
The main objectives of the study is know about the distribution channel of Salt
Trading Corporation. The specific objectives of this study is to :
This study will be helpful to know about the distribution channel of Salt Trading
Corporation and to the people who are interested to know how petroleum reaches
to the people. the significance of this study are:
This studies also helps junior as a guide they can collect relevant
information. The main purpose of study is to indicate the right picture of
“Salt Trading Corporation”.
Market of salt trading industry has increase, customers can choose about
the product. This study intends to analyze competition affecting.
The study is made within limited timeframe, limited data, and with lack
of experiments.
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This study will be helpful to the society/ nation to know about distribution
channel used by Salt Trading Corporation,Biratnagar Branch.
R.Ramanujam (1996) discussed its wider ramification, analyzing among covering all
aspects of food unit, cost of production, productivity, marketing and finance. He
found that in the liberalized economy, the industry has a favorable market factories
affect capacity utilization viz., power cut, inadequate supply of coal and its poor
quality and shortage of forenighe wagone, with all these areas under government
control, the gult must take necessary steps to remove the hurdles For more Project
visit techshristi.com techshristi.com
Conceptual Review
The realization process of a marketing strategy of a company lies not only in
achieving specific production goals and a proper communication with recipients
during realization of the promotion phase. Its constant and very important factor is to
provide finished product to customers. A basic condition for achieving goals set out in
the trade is that the finished product meets the needs of the consumer in particular it
has a suitable from and it is delivered at the right time and place. To be compliant
with his requirement means to take action and implement the elements the
distribution of goals –one of the process all the decisions and action related to the
manufactures communication with end customers. Intermediaries create marketing
distribution system. Distribution system can be also defined as marketing system or
market system. A distribution system is a group of depended on each other
organization units, which are taking part in process of flow of products or services
from producers to buyers.
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● Distribution Channel
Distribution system can be also defined as marketing system. Distribution research
refers to the collection and analysis of information relation to the sales of a product or
brand and its distribution through various retail channels so as to enable the
management make better decision .
Distribution is very important as if the products are not distributed and are not made
available to the customers at the right place, time and quality they would not buy the
products. A channel of distribution is the route or path along which products flow
from one point of production to the points of ultimate consumption or use. It starts
from produces and ends with the consumer.
Direct Channel
Indirect channel
Mixed Channel
If the producers use both direct and indirect channels to supply their
goods to customers this is called mixed channel.
In this way the producers can use direct indirect and mixed channel to supply
their goods or services to the consumers. For distribution of consumer goods
the main participants. of the distribution channel are producer, agents,
wholesalers and retailers. But for the industrial goods the main participants of
the channel are producers, industrial users, industrial distributors and agents.
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Firstly, it affects sales - if it's not available it can't be sold. Most customers won't wait.
Decisions about physical distribution are key strategic decisions. They are not short
term. Increasingly it involves strategic alliances and partnerships which are founded
on trust and mutual benefits. We are seeing the birth of strategic distribution alliances.
You can see Southwestern Bell in the Hall Of Fame explain how marketing marriages
provide new ways of getting products and services in front of customers.
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Previous Study
Distribution system study has been a major part of study of many of the researchers .
Driven by the concept and development of supply chain company management, there
is an ongoing relationship with their suppliers and customers in order to assume their
own competitiveness.
'Many firms realize that partnership with customers and suppliers are important means
of establishing competitive advantages.'
Marketing channel decisions are among the most important .decision 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 decision about distribution of products
to the end user. The issue of distribution was analyzed by a number of marketing
specialists (Berman, 1998, kim ,1996, Delton 1997, Frazier 1999, Kotler 2003,
Rosenbloom 1999, Stem 2006, etc) playing a big attention to the elaboration of the
procedures of marketing channel design (Gudonavicience and Alijosiene, 2008)
Research devoted to channel management has played an important role in the
marketing discipline role for over 40 years. Two main areas of channel research in
marketing have evolved. First, how channel 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 (CFDwyer& on , 1988; John &
weitz, 1988;fein & Anderson, 1997; shervani, frazier & challagalla, 2007) second
,how ongoing channel relationships are been even more prominent , dealing with
methods of channel governance , including the impact of communication approaches,
levels of control and conflicts, and the attainment of trust and commitement
(c.f.frazier, 1983;Anderson & weitz, 1992 Boyle , Dweyer, Robicheau and simpson,)
Types of Research
Research is an objectives and systematic search for relevant information on a
particular subject or topic .It aims at finding answers to questions by implementing
scientific procedures .Qualitative and Quantitative research design are used to & end
out research objectives.
o Qualitative Research
Qualitative research is an investigation of the subjective meaning or the social
production of issues, events or perceives by collecting non-standardized data of
analyzing tent and images rather than number and statistics.
o Quantitative research
Quantitative research is a structured way of collecting and analyzing data obtained
from different sources. It involves the use of computational/statistical mathematical
tools to desire resells.
While preparing this report data are based on both primary and secondary sources.
Sources of data
There are two sources for data collection they are primary and secondary sources
● Primary data
● Secondary data
Research is the systematic analysis on specific topic. The research requires a lot of
information for in depth study but is not possible to gather information of many years
and not possible to take entire population for the study purpose. There for there are
many limitations within which the study has to be conducted. The research on
consumer buying decision on Salt Trading Cooperation Biratnagar is based on
following limitations.
o The study is made within limited time frame and limited data.
o This study is carried out on a small sample size i.e 30 respondents.
The research as far as possible tried to present the data on the tabulation system as
well as pie chart, bargraph and line graph. Analysis have been made upon the
presented data to extract the conclusion
Table No : 1
Different products and its price of Salt Trading Corporation Ltd.
Table No : 2
Chemical Fertilizer
Table No : 3
Non-Chemical Fertilizer
Table No:
SN Particular Numbers
1 Main Distributor 1
2 Distributor 7
3 Wholesaler 15
4 Retailer 685
From above table it is concluded that the distribution channel of Salt is strong and is
covering the maximum percentage of market. It distribution network is strong enough
that the stock never become shortage its quality is good enough to make the customers
loyal towards the product.
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Table No:
Figure No : 1
40000
35489 36548
35000
30000
24565 25645
25000
20085
20000
15455
15000 11680 12020
10000 9085
5000
0
2072/73 2073/74 2074/75
From above table and figure it is concluded that the consumption and and use of
the product of Salt trading corporation is increasing on the basis of consumption
rate and on the basis of fertilizer and non chemical fertilizer it is also increasing
from fiscal year 2072/73 to 2074/75.
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Table No.5
Encourages factors to be the customer
Figure No.5
13%
20%
Quality
Price
Advertisment
17%
Brand Name
50%
Figure No. 6
13%
17% Satisfied
Highly Satisfied
50%
Average
Dis-satisfied
20%
The above table and figure shows 50% of respondents are satisfied when the
distribution channel of the company, 20% are highly satisfied, 17% are not satisfied
with this channel and remaining 13% are Dis-satisfied. The analysis made above
relating to customer satisfaction level on distribution channel provided by the
company shows that majority of customers are imbalance to say that they are satisfied
or unsatisfied .However few customers are unsatisfied and dis-satisfied with
organizational service.
Table No.7
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Figure No.7
Figure showing the satisfaction level on time consumed for distribution of product
12
10 10
10
6 5 5
4
0
Satisfied Highly Satisfied Unsatisfied Highly unsatisfied
The above table and figure shows that maximum 17% of respondents response are in
position to say that they are neither satisfied nor dissatisfied .However , 33% of
customers are satisfied and highly satisfied on time consumed for distribution of
provided. The analysis made above relating to the satisfaction level on time
consumed for distribution of product ,it shows that maximum no. of respondents are
in average , satisfied and highly satisfied remaining few customers are dis-satisfied
with it.
Table No.8
Total 30 100
Note: Field Survey 2076.
Figure No.8
16 15
14
12
10
10
8
6
4 3
2
2
0
Zero level One Level Two Level Three Level
The above table and figure shows the types of channel used by the company for the
distribution purposed 33% of respondents say that the company is using zero level
channel.likewise,10% customers view that the company used one level channel & 7%
says that the company use two level channel channel & 50% of respondents view that
the company use three level .It means majority of distribution of company make
through three level of channel. The analysis made above relating to the types of
distribution channel used by the company for the distribution shows that maximum
no.of respondents say that company is using three level channel and few no.of
respondents say that other level channel .It means majority of distribution the
company make through three level of channel.
10. Table showing delivery period of Surya Nepal Products trading products.
Table No: 9
Figure No: 9
Showing delivery period of Surya Nepal Products trading products.
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12
10
10
8
5
4 4
4
3 3
3
2 2
2
1 1
0
1-3 Days 3-5 Days 5-10 Days 10-13 Days
From the above table, it is inferred that 40% of the respondents answered that with
in1-3 days they are getting their product, 33% of the respondents answered that with
in 3-5 days, 17% of the respondents answered that with in 5- 10 days, 10% of the
respondents answered that within 10-13 days they getting their product.
consumption rate and on the basis of fertilizer and non chemical fertilizer it
is also increasing from fiscal year 2072/73 to 2074/75.
According to the table .5 and figure 5, out of 30 consumers or no of
respondents 50% are encouraged by the price of product to consume it and
17% are encouraged by looking the advertisement, 73% are looks for
quality. The analysis made relating to the encourages factors to be the
customers shows that maximum number of respondents are encouraged by
the price of product to consume it and few no. of respondents are
encouraged by looking the advertisement ,quality and Brand name.
The above table and figure shows 50% of respondents are satisfied when the
distribution channel of the company, 20% are highly satisfied, 17% are not
satisfied with this channel and remaining 13% are Dis-satisfied. The analysis
made above relating to customer satisfaction level on distribution channel
provided by the company shows that majority of customers are imbalance to
say that they are satisfied or unsatisfied .However few customers are
unsatisfied and dis-satisfied with organizational service.
The above table and figure shows that maximum 17% of respondents
response are imposition to say that they are neither satisfied nor
dissatisfied .However , 33% of customers are satisfied and highly satisfied
on time consumed for distribution of provided. The analysis made above
relating to the satisfaction level on time consumed for distribution of
product ,it shows that maximum no of respondents are in average , satisfied
and highly satisfied remaining few customers are dis-satisfied with it.
The above table and figure shows the types of channel used by the company
for the distribution purposed 33% of respondents say that the company is
using zero level channel.likewise, 10% customers view that the company used
one level channel & 7% says that the company use two level channel channel
& 50% of respondents view that the company use three level .It means
majority of distribution of company make through three level of channel. The
analysis made above relating to the types of distribution channel used by the
company for the distribution shows that maximum no of respondents say that
company is using three level channel and few no of respondents say that other
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level channel .It means majority of distribution the company make through
three level of channel.
The Above table and figure shows that the no. of respondents are 30 among
them 5% of respondents are covered by inside city, 5% outside city, allover
Nepal are of 10% remaining others are 10 %. The analysis made above relating
to the area covered by distribution channel of Salt Trading Corporation
products from the response of respondents, it is clear that the distribution of
products not only is limited within or outside the city but its products has
highly covered all the areas inside Nepal
The above table and figure shows that 83% of people think that sale has been
increased through the distribution system remaining 17% are unknown about
this system. Therefore maximum No. is known about this system. The analysis
made above relating to the sales increased by the distribution system shows
that maximum No. of Respondents think that sale has been increased through
the distribution system and few no. of respondents respond no because they
don't believe in sale & increased by distribution system.
CHAPTER III
The collected data & information has been grouped according to the nature of the
questionnaire. The researcher for analysis purpose presented the collected data and
information into various table and then further analysis has been made through pie
chart and bar graph. The researcher in the analysis found that Impact of distribution
system on sales of Salt Trading Corporation products industries pvt.ltd, Biratnagar is a
private limited company. The biscuits industries sector in Nepal is developing.
Biscuits are one of the emerging products here in nepal.It is successful to sale Salt
Trading Corporation products throughout the country due to its. Effective distribution
system. The organization is using zero level to three level channel for distribution of
its products. The distribution system of the company is so effective that it has satisfied
all its customers resulting to the increase in sale of its product. .
3.2 Conclusion
The Project has been taken – up to find out the what are the problems faced by the
Dealers and what is the present company position in Bhubaneswar and what are the
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other suggestions to the company to increase the sales. I did the survey with the
sample of 1 Dealer points in the given city.
In a survey I can conclude that the transportation (Dispatching) of the vehicles of Salt trading
is very good.
Dealer is showing good response.
The Dealers opinion is that the company advertisement is not good in Cities. They are telling
that the management is not showing interest to increase the advertisement.
The dealer is satisfied with the services of the company.
BIBLOGRAPHY
Kotler, P., "Marketing Management: Analysis Planning and Control". 7th edition,
Englewood Cliffs: Prentice-Hall, 1991
It is highly requested that this questionnaire has been prepared with the objectives of
completion of my BBS level. Your kind support in answering this question will also
be helpful to find the distribution system of company .I hope you will be helpful to
me in this regard.
1. Which Salt you eat?
a.ayo. b. Bhanu
c. Sakti c. Tej
2. Have you ever heard about Salt Trading Corporation products?
a. Yes b. No
3. Is the products of Salt Trading Corporation products available in your area?
a. Yes b. No
4. What factors encourages you to be the customer of Salt Trading Corporation
products?
a. Quality b. Price
c. Advertisement d. Brand name
5. Are you satisfied with the channel system of Salt Trading?
a. Satisfied b. Highly satisfied
c. Average d. Dis satisfied
6. Are you satisfied on amount of time consumed for distribution of products?
a. Satisfied b. Highly satisfied
c. Dis satisfied d. Average
7. What level of distribution channel do you think the comping is using?
a. Zero level b. One level
c. Two level d. Three level
8. Do you think sale has been increased through the distribution system?
a. Yes b. No