AN

INDUSTRIAL
TRAINING
REPORT

1
 AN

INDUSTRIAL TRAINING
REPORT

ON

BALAJI WAFERS PVT LTD

RAJKOT

WITH SPECIALISATION

IN

CHANNELS OF DISTRIBUTION

2
 An
Industrial Training Report
On
Balaji Wafers Pvt Ltd Rajkot
With Specialization In
Channels of Distribution
Submitted To
Saurashtra University Rajkot
In Practical Fulfillment of the Requirement for the
Degree of B.B.A
Prepared By
Sneha D Jobanputra
T.Y.B.BA.

Roll No
Exam No
Academic Year

Guided By
Prof R V Keshwala

Shri K H M Arts & Commerce College

Porbandar 360577

3
 PERSONAL INFORMATION

NAME SNEHA D JOBANPUTRA

FACULTY T.Y.B.B.A.

SUBJECT AN INDUSTRIAL TRAINING REPORT WITH

SPECIALISATION ON CHANNEL OF
DISTRIBUTION

FIRM VISITED BALAJI WAFERS PVT LTD

INSTITUTION SHRI K H M ARTS AND COMMERCE

COLLEGE

CENTRE PORBANDAR

UNIVERSITY SAURASHTRA UNIVERSITY

ACADEMIC YEAR 2004-05

ROLL NO 6

EXAM NO

DURATION OF 15 DAYS \ TWO WEEKS

TRAINING

GUIDED BY PROF R V KESHWALA

4
COMPANY CERTIFICATE

5
 SHRI K.H.M. ARTS AND COMMERCE
COLLEGE PORBANDAR

CERTIFICATE

This is to certify that Miss Sneha D Jobanputra a student of

T.Y.B.B.A.Carried out the industrial practical training at BALAJI WAFERS PVT
LTD Rajkot with specialization in channel of distribution. As per Saurashtra
University syllabus she has prepared the report under my guidance and direction.

Academic year 2004-05

Place
Date

Guided By
Prof R. V. Keshwala

PREFACE
As growing child does not need only food but nutritious and healthy food in
the same way a B.B.A. student does not need only industrial training about an

6
industrial training particularly with specialization in the various fields of marketing
financial personnel as well as production aspects of an industry.

The B.B.A. program is designed in such a way that the students are able to
get theoretical as well as practical knowledge of the subject which provides more
confidence and better understanding to the student for the same.

As per the rules and regulations laid down by the Saurashtra University and
program arranged by our college a student of T.Y.B.B.A. has to get a practical
training for two weeks or 15 days in any industry to obtain the practical knowledge
and experience of management.

In the management course the practical training is of great importance only

the theoretical discussion and case study in classroom is not enough for knowing
various aspects of management and business this training highly enables the
students to observe the theoretical principles and values and to put them into
practice.

I took training in BALAJI WAFERS PVT LTD

Rajkot in the academic year 2004-05 on my side I have dons my level best
to cover all the points and give detailed information about the specialized topic of
channel of distribution of the same company and have concentrated on the precise
and meaningful report construction.

Thanks
Sneha D Jobanputra

ACKNOWLEDGEMENT
I am very thankful to our college principal Dr. J.S. Ramdatti and our guide
Mr. R V Keshwala for their valuable guidance and help and also Mr. A B Savjani
for their cooperation in making my training feasible.

I take this opportunity to express my gratitude to the executive persons of

BALAJI WAFERS PVT LTD namely the marketing manager Mr. Nayan Tank, the
sales representative Mr. Jay Sachdev and other executives of the company who
gave me all the information abut the company and spent their valuable time for
giving me the details about my selected topic of channel of distribution.

7
 Lastly I would like to thank my family, friends and well wishers to
encourage me and make me reach at this level.

Sneha D Jobanputra

INDEX

Sr. No Particular Page No

1 General Information 10

2 Marketing Department 30

3 Channel Of Distribution 42

A ) Channel Of Distribution 43

B) Physical Distribution 65

8
 4 Future Plans 74

5 Conclusions 75

6 SWOT Analysis 76

7 Findings And Recommendation 78

8 Bibliography 80

9 Limitations Of The Report 81

GENERAL INFORMATION

Contents

Sr. No Particulars Page No

1 Introduction 11

2 Company Profile 12

3 Mission 13

4 History And Development 14

5 Corporate Goals And Objectives 16

6 Key Persons Of The Company 17

9
 7 Size And Form Of Organization 18

8 Organization Chart 19

9 Time Keeping System 20

10 Factors Of Location 21

11 Facilities Given To The Employees 23

12 Turnover Of The Company 24

13 Products Of The Company 24

14 Chart Of Production Process 25

15 Research Methodology 26

16 Questionnaire 29

INTRODUCTION

For preparation of an industrial training report it is very important to

understand the general matters of the company without the information of such
matters the report it is very important to understand the general matters of the
company.

Without the information of such matters the report is incomplete as it does

not provide a perfect knowledge of company these type of general matters are
considered in the section of general information.

BALAJI WAFERS PVT LTD produces ready to eat food items now a day’s
people are fond of eating ready to eat food and BALAJI name is very popular in
Gujarat and saurashtra.

It has the one and only fully automatic plant in Gujarat the main objective
of the company is to provided best quality product at the cheapest rate we can also

10
say their mission is quality first coast second the market of the product is large and
comprehensive.

COMPANY PROFILE

Name Of The Company BALAJI WAFERS PVT LTD

Head Office BALAJI WAFERS PVT LTD

Vajdi(Vad), Kalavad Road
Taluka Lodhika
Rajkot 360003
Trade Mark BALAJI

Year Of Establishment 1982

Nature Of Product Food Item(Snacks)

Production Capacity 1200 Kgs Per Hour

Size And Form Of Company Size Medium Scale Unit

Form Private Limited

11
Slogan Any Time Crunchy
All Time Fresh

Bankers Corporation Bank

Phone No 0281-2387132\2385744

Fax No 0281-2389300

E-Mail Address Contact@Balajiwafers.Com

Website Www.Balajiwafers.Com

MISSION
1. To provide ultimate value satisfaction to its customers in terms of quality
commensurate with price through

a. Better quality
b. Excellence in technology
c. Speedy service
d. Management expertise

2. Too much preferred organization for both its future and present

a. Employees
b. customers\suppliers
c. Related agencies and society at large
d. Share holders

3. Continue its march towards program and retain its front line
BALAJI a symbol of quality

12
13
 HISTORY AND DEVELOPMENT
History is the mirror of the past it shows the glorious efforts done by
the promoters of the company in the past the history speaks of the past
performance about the financial performance, development of the company
and the present situation.
Balaji wafers has also an interesting history behind the
establishment Mr. Bhikubhai the chairman and Mr. Chandubhai the
managing director of the company worked very hard to reach at the current
position.
The history of Balaji Wafers begins with the era when Chandubhai
and Bhikubhai were working on contract basis for supplying the wafers to
the canteen of astron theatre at Rajkot city.
Shri Meghji Virani, Bhikubhai Virani, Chandubhai Virani and
Kanubhai Virani are the sons of Shri Popatbhai Virani of Dhundhoraji
village of Jamnagar district.
But at that time they got the raw materials from the 3rd party and
than they manufactured and supplied the same to the canteen of Astron
Theater but there were a problem of short as well as delay in supply of
products on time. As these kinds of problem can lead a business to peril and
can ruin it something had to be done in these regards as an ultimate solution
to all the problems they decided to manufacture wafers on their own and
supply the same to canteen and thus the foundation of Balaji Wafers was
first setup but without any brand name in 1982.
Since the taste and quality was excellent, demand for their wafers
was increasing day by day to pace with this increasing demand of wafers in
market they started producing wafers in bulk without any compromise in
quality and taste of the products they acquired a small place with very
limited investment with indigenous frying method thereafter a
semiautomatic plant was established with a production capacity of 200kgs
per hour they started selling their product initially in ordinary packing but
after upgrading the technology they used decent packing to attract cream
market and thus got more market share in the food market. This
development had lead BALAJI from normal wafers producer to BALAJI
WAFERS PVT LTD in 1990.

DEVELOPMENT
Development means what the company had done it the past and how
much overall efficiency has increased till today Balaji Wafers has come
long way since establishment and has firmly established itself as a leader in
high quality product and has made remarkable improvement both in
services and quality of products.

14
 The initial investment of the company was only Rs. 25000 in recent
stage it has assets of Rs. 5 crores and will be increase in future the company
conforming with many hardest and make a progress and development which
may be described by following ways.

1. It started a production in simple packing and without brand name

and satisfied the demand at canteen since, the quality is best the
demand of the product was increased.

2. This development had lead BALAJI from normal wafer producers to

BALAJI WAFERS PVT LTD in 1990 up to now BALAJI was
producing the products manually.

3. After then to meet the demand they started manufacturing the

product in semiautomatic plant the production capacity of this
machinery was 200 kgs per hour.

4. After then they adopt a highly techniqued fully automatic plant

which is only one in whole of Asia the production capacity at this
plant is 1200 kgs per hour.

Recently they set up a huge fully automatic plant for production as

well as nitrogen packing for long term preservation of the products.

CORPORATE GOALS AND OBJECTIVES

Company has its own culture and identity in business world it is
effort of the company to maintain identity and to be no 1 in global market
company has fixed its goals and laid down some certain mission to achieve
them.

CORPORATE GOALS

1. To ensure quality at all stages.

2. To increase productivity and market share of the firm.
3. To increase the profitability of the firm.
4. Provide speedy services and satisfies the need and wants of the
society.

15
 5. To keep a slim and trim but fully satisfied management team to
operate faster and to achieve higher levels of business and growth
effectively.
6. To effort foreign customer and export the product in near future.

OBJECTIVES
Obviously primary objective of any company is to profit
maximization but in present competitive marketing approach profit
maximization should not be one and only goal but it is a short term goal
every company wants to increase prestige market share etc so wealth
maximization becomes important goal of company which is also long term
goal of the company.

KEY PERSONS OF THE COMPANY

Mr. Bhikubhai Virani Chairman

Mr. Chandubhai Virani Managing Director

Mr. Kanubhai Virani Technical Director

Mr. Keyur Virani Research And Development Managed

Mr. Hitesh Virani General Manager

Mr. Nayan Tank Marketing Manager

16
Mr. Jay Sachdev Sales Representative

17
 SIZE AND FORM OF THE ORGANIZATION

SIZE
Industries can be categorized on the basis of capital invested in it there are
three categories.

1. Small scale industry.

2. Medium scale industry.
3. Large scale industry.

So far as BALAJI WAFERS PVT LTD is concerned it can categorized as

medium scale industry because as per new industrial law the investment limit
prescribed by government for small scale industries is 5 crores.

Investment about more than 5 crores is called medium scale industries

BALAJI WAFERS PVT LTD has invested more than 5 crores.

FORM OF ORGANIZATION

According to John Piffiner “Organization is an essentially a matter of man

to man job to job and department to department.”
There are different types of organization like

1. Line organization
2. Staff organization
3. Line and staff organization
4. Committee organization
5. Project organization
6. Matrix organization

Out of all these Balaji Wafers follows line and staff type of organization
structure line and staff organization means to prepare plans to take vital decisions
and to implement them effectively all these function cannot be performed
simultaneously by a single person hence there emerged a system where in line
officers received advice from the staff experts the organization structure is as
follows.

18
 ORGANIZATION CHART

Chairman

Managing director Technical director

Technical staff

Production Marketing
manager manager

Area wise
salesmen
Technical Packing
workers supervisor

Working
staff

19
 TIME KEEPING SYSTEM
Time is very important for any business unit any business unit as
from the title time keeping system we can say that under this system the
arrival and exit time of the employees is noted

Balaji wafers is having mainly a general shift and in between they

have a lunch break of one hour which is mentioned as follows.

General shift 8am to 5 pm

Lunch break 12 pm to 1 pm

LOCATION FACTORS

20
 Location plays an important role in establishment of a new unit every
business entrepreneur of a business unit must give full consideration to the suitable
location for enterprise because success or failure is highly depended on the location
for enterprise because success or failure is highly depended on the location of the
unit optimum location point is expected to give the lowest unit cost of production
as well as of distribution and hence it can be most profitable for the business an
entrepreneur must be choosing an ideal location at the time of launching the
enterprise in other words all the pertinent factors influencing location will have to
be taken into account and weighed very carefully.
So far as BALAJI WAFERS PVT LTD is concerned it requires potatoes,
edible oil , iodized salt, bananas , mungdal, chanaldal, vatana etc in the production
of various type of product such raw materials available at Rajkot very easily main
reason for such location of the unit are as follows:

 AVAILABILITY OF RAW MATERIALS

The most important factor, which is directly affected to the product, is the
availability of raw material for producing the product.
These respective product and its raw materials of Balaji Wafers are:-

products raw materials

Potato Wafers
Farali Chevdo Potatoes

Mungdal MungDal

ChanaDal ChanaDal

Vatana Peas

Peanuts Roasted Peanuts

Masala Sing

21
 Sing Bhujiya Besan Groundnut

Ratlami Sev Besan , Mathdal

Banana Wafers Banana

In addition to these iodized salt edible oil, chilly powder, black pepper etc
all the raw material is required so whichever material is easily available at nearest
place. Potatoes are purchased from Disa, Ahmedabad and Surat through dealers as
per requirement.

 ELECTRICITY:-
The availability of electric power is very essential for any unit where
production is done 24 hours continuously. BALAJI WAFERS PVT LTD gets
electricity from G.E.B. and in absence of G.E.B. light it can be operated by their
own generators.

 LABOR:-
For running industry main essentially is the labor because without man any
work is not start so, man is focus of any industry essential supply of labor is in
required quantity is also taken into consideration while establishing an industry if
the company can find skilled and experienced labor at minimum wage rate it can
reach to its organizational goals in time in Rajkot city both skilled and semiskilled
labors are available the level of education is also high in Rajkot.

22
 TRANSPORTATION:-
For every industry transportation facilities have much important to run their
work regularly and smoothly as to get raw material quickly as well as to supply
their finished goods to the market.
Rajkot has an all weather part so there is no problem of transportation for
BALAJI WAFERS PVT LTD moreover Rajkot has all the facility of transportation
except seaway like railway airway and road way etc it is well known that railway of
Rajkot has the direct connection with the national railway line.

FACILITIES GIVEN TO THE EMPLOYEES

It is the duty of any unit to provide beneficiary services to the employees of

the unit.Balaji Wafers also provides many basic welfare facilities to the employees.
This company provides the following beneficial facilities to the employees
undertaken to the provision of the law.

Facilities given to the employees are as follows:-

1. Bonus is paid every year.

2. It also provides transportation facility.
3. It also provides refreshment facility.
4. At the time of any accident during the course of employment the company
provides first aid and hospital expenses.
5. Company also provides it s product at a concession rate to employees.
6. At the time of any family function of the employees company provide
several facilities like gift articles etc.
7. Music and song at production place.
8. Lunch is also given to the employees at a rate of Rs. 5 per dish.

23
 TURNOVER

Turnover refers to total annual sales turnover so far as BALAJI WAFERS

PVT LTD is concerned its annual turnover is around 60 crores for all products.

Now let us classify the turnover according to wafers and namkeen.

Wafers 85%
Namkeens 15%

PRODUCTS OF THE COMPANY

The product is the most important element by which any firm can prove its
efficiency and improvement of quality product is a symbol of the business firm.

BALAJI WAFERS PVT LTD is engaged in the production of food item

they produce 12 different types of snacks items which are as under:-

1 Potato Wafers.
2 Masala Wafers.
3 Banana Wafers.
4 Masala Banana Wafers.
5 Farali Chevdo.
6 Peanuts.
7 Ratlami Sev.
8 Sing Bhujiya.
9 Mung Dal.
10 Chana Dal.
11 Vatana.
12 Masala Sing.

CHART OF PRODUCTION PROCESS

24
 The company has a fully automatic plant especially for the production of
wafer the capacity of this plant is nearly 1200 kgs per hour the production process
of wafers is as under in short.

Raw material

Washing

Boiling

Frying

Ingredients

Packing

In case of namkeens there is a special boiling machine the process of

different namkeens are as follows:-

Boiling

Frying

Ingredients

Packing

RESEARCH METHODOLOGY

 RESEARCH

25
 Research is the application of human intelligence in systematic manner to a
problem. It may minimize the total uncertainty by intelligence use of the most
reliable data available in the organization.

According to P.V. Young we may define research methodology as scientific

undertaking which by means of logical and systematized method, aims to discover
new facts.

 STEPS IN RESEARCH METHODOLOGY:-

1. Selection or choice of research problem.

2. Understanding the research problem.
3. Collection and review of knowledge of written material.
4. Selection of the most promising method of solution.
5. Listing and selection of different tools of data collection.
6. Execution of research plan.
7. Coding and processing of research data.
8. Preparation of the brief report.
9. Preparation of the final report.

 SOURCES OF DATA

There are different sources of collecting data before deciding the sources to
collect the data one has to make a proper planning of investigation and purpose of
inquiry following are the sources of collection of data.

26
 S o u r c es o f d a ta

P r im a r y so u r c e s S econ d ary source s

I n te r n a l s o u r c e s E x ter n a l so u r c e s

 INTERNAL SOURCES

Such type of information is always available in books of organization e.g.

sales, production, salary and wages etc.

 EXTERNAL SOURCES

This type of information is collected from outside agencies hence it is

called data collected from external sources primary data are original and first hand
information while secondary data are second hand information already prepare or
collected in the previous research.

Methods of collecting primary data

1. Direct personal interview
2. Indirect personal interview
3. Information from correspondence
4. Mailed questionnaires
5. Questionnaires to be filled by the enumerators

METHOD FOR COLLECTING SECONDARY DATA

1. Government publication

27
 2. Publication of international organization (World Bank, U.N.O, I.M.F etc)
3. Semi official publication
4. Reports of committee and commission
5. Private publication
6. Magazines and journals and newspapers
7. Research institutions
8. Annual report of joint stock companies

My attempt to research was quite simple and straight forward first of all the
list of questions was prepared by me under guidance of our professors an then I
asked many questions regarding advertising to marketing manager the main
advantages of this method are that accurate information can be collected and
personal conduct becomes possible.

QUESTIONNAIRE

1. What is the history of the unit?

2. How much it has developed till now?

28
3. What was the year of establishment?

4. Where is its head office?

5. Who are the bankers of the unit?

6. What is the nature of the product?

7. What is its production capacity?

8. What is the size and form of the unit?

9. What are the goals \ objectives and mission of the unit?

10. What is the time keeping system?

11. What are the reasons for the location of the unit?

12. What are the facilities given to your employees?

13. What are the products of the company and what is its total turnover?

14. What is the production process of the products?

MARKETING DEPARTMENT

Sr No Particulars Page No

31
1 Introduction

29
 32
2 Organization of marketing Department

33
3 Product Planning

34
4 Pricing Policy

36
5 Target Audience And Competitors

37
6 Advertisement

38
7 Channel Of Distribution

39
8 Marketing Research

40
9 Branding, Packing ,And Slogan

41
10 Questionnaire

INTRODUCTION

The functioning activity of marketing department starts when the product

reaches the market form the production unit Phillip Kotler defines market as a
market is an area for potential economics.

The shortest definition of marketing is meeting the customer‘s needs

profitably the company should have a very efficient and excellent marketing

30
department which tries to provide maximum satisfaction to the customers while
having reasonable profit on the other hand.

In BALAJI WAFERS PVT LTD marketing has also vital importance its
marketing department is very systematic the marketing manager Mr. Nayan tank is
very hard working and experienced person. He operates marketing department and
all the marketing activities of BALAJI WAFERS PVT LTD.

ORGANIZATION STRUCTURE
Marketing is essential for all the organizations marketing is the tool by
which an industry can earn profit by selling product. It is true, nothing happens I
our economy until somebody sell the product “as seeing the importance of
marketing its organization structure must be well prepared the flow of authority is
from upward to downward and the flow of responsibility is from down ward to
upward be necessary.

Chairman

31
 Managing directors

Director

Marketing manager

Area wise sales man

PRODUCT PLANNING
Product planning means the planning for the product that is to decide what
type of production is to be produced or what needs or requirement the product has
to satisfy and for whom the product is meant. Product planning is an important
concept for any industry. Every industry must plan its products as which result
profitable for the company and satisfy the consumer wants

So far as Balaji Wafers is concerned it mainly produces

1. Potato Wafers
2. Masala Potato Wafers
3. Banana Wafers
4. Banana Masala Wafers

32
 5. Farali Chevdo
6. Ratlami Sev
7. Sing Bhujiya
8. Chana Dal
9. Peanuts
10. Mung dal
11. Vatana
12. Masala Sing

It plans its product in order to maintain existing customers in fact BALAJI

WAFERS PVT LTD does not require much of product planning it has a very good
marketing network and also a very good market for its product.

PRICING POLICY
Out of 6 Ps of marketing mix pricing is one of them price of the product is
main element in any organization. Therefore, decision regarding price is the most
vital decision for a marketing manager. Right price can promote sales of the
company. While wrong price affects the sales of the company largely, so mixing of
price is more important than all other tasks.

Pricing is an important element of the marketing department. a company

has to setup the pricing policy considering so many factors such as demand,
competition, government interference etc even company has its own pricing policy.

BALAJI WAFERS PVT LTD is in concerned the company tries to keep

least prices than competitors price lower prices are there because of their minimum
advertisement cost. The company has adopted retail pricing policy under the policy
the company binds the retailers to sale the branded goods at the fixed rate decided.

33
 The company gives fixed commission to dealers the catalogue of price is
given as follows:-

34
PRICE LIST

35
 TARGET AUDIENCE AND COMPETITORS.

 TARGET AUDIENCE

The target customers means the target is fixed based on level of customer’s
age, sex, needs, wants, demand, competition, and changing fashion of the society.

As far as Balaji Wafers is concerned the market of the company is evolved

and large the product of “BALAJI" is a food product so the main audience of the
company is children and young people.

 COMPETITORS

The following are the competitors of BALAJI WAFERS PVT LTD

1. Ruffles Lays
2. Uncle Chips
3. Samrat
4. Laher
5. Kurkure

36
 ADVERTISEMENT

Advertisement is an important aspect in marketing. It is concerned with the

preparation of visual and oral messages for making people aware of and favorably
inclined towards product, brand, service, quality and institution and so on. The
ultimate aim of advertising is to contribute towards increase sales and to increase
profit. It is a specialized technique of popularizing the product and is indispensable
in the marketing of goods.

Advertising is a powerful promotion tool to establish and retain brand

loyalty, whether a company is introducing new produces or expanding the existing
one. Advertising is inevitable in this modern competition market. It can be done
through various ways.

So far as “BALAJI” is concerned it also spent a good amount on

advertising. It makes advertising by following ways:-

1. Lighting board
2. Banners
3. Kitchen
4. Calendar
5. Wall painting
6. Wall clock

CHANNEL OF DISTRIBUTION

37
 Channel of distribution is the route or ways through which goods or
services move from the place of production to place of consumption. In modern
marketing so many channel of distribution exist.
Channel of distribution have a vital role especially in the distribution of
consumer goods. The most innovative product offered as an attractive price world
is of no use unless there is as efficient distribution system.
So far as Balaji Wafers is concerned its product is a consumer product so it
mainly sale the product directly to its dealer’s and distributor not to consumer.
However it has also a big distribution network at various places in Gujarat
In case BALAJI WAFERS PVT LTD transportation and dispatch activities
are performed by carry and forward agencies. The names of carry and forward
agencies and their areas are given below

 Kataria enterprise:-
 Suarashtra north Gujarat and south Gujarat
 Swami Lilasha enterprise:-
 Kutch
 Atmiya agencies:-
 Rajkot & nearest area
There are total 175dealers of BALAJI WAFERS PVT ltd in all over Gujarat we can
show the channel of distribution of the company is as follows
Company

Carry and forward department

Distributor

Dealers

Retailers

Consumers

MARKETING RESEARCH
Marketing research is the systematic collection analysis and separation of
idea and reading and relevant marketing situation facing the company it is highly
necessary in this modern competitive age.

38
 A company can conduct marketing research in different ways company can
hire a marketing research firm also however, most of the large companies have
their own marketing research department because in this competitive age no firm
can remain careless about a single change in market.

BALAJI WAFERS PVT LTD has its own research and development
department which is handled by Mr. Keyur Virani marketing research manager
prepares actual reports about the market and submit the marketing research
manager and to understand the problems regarding marketing.

Research is conducted indifferent marketing factors like product and

service, sales, advertising, pricing, distribution packing etc.

39
 BRANDING, PACKING AND SLOGAN

 BRANDING
The word brand is a comprehensive term. The brand is to name or mark is a
proof of ownership it means a signor symbol of quality. it is the best means of
advertising and positioning in the market branding is the best means of capturing
and retaining the consumer demand in a competitive market the marketer can create
brand equity, brand loyalty and brand image for his products only through branding
BALAJI WAFERS PVT LTD has the brand name as “BALAJI”.

 PACKAGING
packaging may be defined as the general group of activities in the planning
of a product these activities concentrate on formulating a design of the package and
producing an appropriate and attractive container or wrapper for a product the
container itself can act a forceful though silent and colorful salesman at the point of
purchase or an effective medium of advertisement encouraging impulse buying
many a time , package design itself can act as a register brand, packaging is
necessary to present flowing out of such liquid. It is essential to maintain freshness
and quality; it can prevent the danger of adulteration
In BALAJI the packing is done by fully automatic packing machine. They
are able to prepare 180 to 100 packs in 1 minute.

 SLOGANS
The entire well known companies have selected an effective and meaningful
slogan to communicate with their customer about the product in very few words it
is the explanation of the product in one line in emotional way the slogans with right
meaning attract the consumer to purchase the particular product forever.
Balaji has the following slogans:-
IN ENGLISH

“Any time crunchy

All time fresh”
IN GUJARATI
“Jyare pan khav karkari ane taji”

QUESTIONNAIRE

40
1. What is the structure of marketing department?

2. In which way product planning is done?

3. What is your pricing policy?

4. Who are the target audience and competitors?

5. What is the advertising policy of the company?

6. Which type of channel of distribution do you follow?

7. Is marketing research done in your company?

8. If yes, how do you do the marketing research?

9. What is the brand of product?

10. What are the slogans for the product selling?

11. What type of packing is done for various products?

CHANNEL OF DISTRIBUTION

CONTENTS

41
Sr No Particulars Page No

42
1 Channel Of Distribution

44
2 Reason For Selecting The Topic

65
3 Physical Distribution

TABLE OF CONTENTS
FOR
CHANNEL OF DISTRIBUTION

42
 Sr No Particulars Page No

1 Concept Of Channel Of Distribution 45

2 Role Of Channel Of Distribution 46

3 Level Of Channel Of Distribution 47

4 Channel Decision 50

5 Marketing Middleman 52

6 Dealer , Distributor And Carry And Forward 54

Agents

7 Terms And Conditions /Rules And Regulations 56

8 Compensation To Channel Member 57

9 Motivation To Channel Member 58

10 Evaluation And Performance 59

11 Channel Conflict And Solution 60

12 Advertising Through Channel 62

13 Questionnaire 64

REASON FOR SELECTING THE TOPIC

Marketing management is one of the most complexes and challenging field

of endeavor contains in itself various functions like:-

 Product mix
 Price

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 Advertising
 Personal selling
 Consumer behavior
 Marketing research
 Channel of distribution etc

From all the functions mentioned above all are equally important for
capturing sufficient market. As far as channel of distribution is concerned it is
internally related by channel of distribution and physical distribution both. The
goods and services available must be matched against the wants desires and need of
users. Channel of distribution serves to achieve this meeting of goods between
producer and users\ customers i.e., why I have chosen the distribution channel as a
topic of training report because without this no marketing function can be done if
the goods are not able to reach its ultimate consumer.

CONCEPT OF CHANNEL OF DISTRIBUTION

Channel of distribution is a way or path through which goods transfer from
the pace of production to the place of consumption. In other words channel of
distribution is a pipeline by which customer or user can obtain. The product which
can satisfy their needs.
The producers cannot be in the market at all the time and in every places for
selling their each units produced. Because they have no such time and again it costs
them too much to go in the market and sell their product for this difficulty they take
the help of middleman which include wholesalers, retailers, dealers, agents,
distributors etc. all of these middlemen united create a channel through which

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goods are distributed smoothly. The middlemen are well acquitted with the position
of market and hence they can distribute the company’s product easily.

According to Philip Kotler, “marketing channel is set of interdependent

organization which is involved in the process of making a product or service
available for use of consumption.”

Distribution system is divided into two parts or division they are:-

1 channel of distribution.
2 physical distributions.
A distribution channel moves goods from producer to consumers. It
overcomes the major time, place and possession gaps that separate goods and
services from those who would use them. Members of the marketing perform many
key factors, which are outlined as follows:-

 Help in production work.

 Financing the producers.
 Aid in contribution.
 Promotional activities.
 Matching demand and supply.

Balaji Wafers is doing all these activities in well coordinated style. All the
persons related with distribution channel are well experienced.

ROLE \ OBJECTIVES OF CHANNEL OF

DISTRIBUTION
In an ever widening market, particularly in consumer goods market,
distribution channel have distinctive role in the successful implementation of
marketing plans and strategies. These channels perform the following marketing
functions in the machinery of distribution.

1. The searching out of buyers and sellers (contracting).

2. Matching goods to the requirement of the market (merchandising).

3. Offering product in the form of assortment of packages of item usable and

acceptable by the consumers.

4. Persuading and influencing the prospective buyer to favor a certain product

and its maker (personal selling \ sales promotion).

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5. Implementation of pricing strategies in such a way that would be accepted
to the buyer’s and ensures effective distribution.

6. Looking after all the physical distribution functions.

7. Participating activity on the creating and establishment of market for a new

product

8. Offering pre and after sale services to customers

9. Transferring of new technology to the user along with the supply of product
and playing the role of change agent.

10. Provide feedback, information and marketing intelligence and sales

forecasting services for their regions to their suppliers.

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 LEVEL OF CHANNEL OF DISTRIBUTION
The number of channel level can characterize the marketing channel. Each
intermediary that performs work in bringing the products to the final buyer
constitutes a channel level. Since the producer and the final customer both perform
work, they are part of every channel. There are following type of channel of
distribution.

 Zero level
A zero level channel is also called the direct marketing channel it consists
of a manufacturer, selling directly to the final consumer. The major zero level
channels are door to door sales, home parties, mail order etc. it depends on the type
and nature of product and the requirement of the customer its diagram is as follows
Manufacturer

Customer

 One level
A one level channel contains one selling intermediary such as a retailer as
most of the manufacturer uses only the retailing system. In this distribution system,
the manufacturer supplies goods to the retailer only with sufficient guidance
relating to the use of product and so on. Its diagram is as follows:-
Manufacturer

Retailer

Customer

 Two levels
A two level channel consist of two intermediaries. In consumer markets,
they are typically a dealer wholesaler and retailer, when the manufacturer wants to
cover a comparatively wider area of markets they use this channel of distribution.
Its diagram is as follows:-

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 Manufacturer

Dealer

Retailer

Customer

 Three levels
A three levels channel contains three intermediaries. In a company which
wants to , distribute ,its product in a nationalized way \ or in a national level market
they have to apply this channel of distribution under such circumstance s dealers
are appointed in various regions, subsequently the product is moved to the
customers through retailers. Its diagram is as follows:-
Manufacturer

Dealer

Sub dealer

Retailer

Customer

 Multi level
Multinational companies which are having their distribution system in
several countries, have to follow a multi channel. It may include four or more
intermediaries make the product and reach to the customers. This method is
convenient when; the customers are evolved in a huge region its diagram is as
follows:-
Manufacturer
Wholesaler

Dealer
Sub dealer

Retailer
Customer

So far as Balaji Wafers is concerned the product of this company is food

product. They adopt a multilevel distribution system, which is as follows:-

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 Company

Carry and forward department

Distributors

Dealers

Retailers

Consumers

The company is having four distributors and 225 dealers.

CHANNEL DECISION

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 Channel decision means the appointment of or selection regarding channel
member in an appropriate manner. The first question arising in making a channel
design is whether you want direct sales to customer or indirect sales? If the firm
chooses the indirect rate, it must be considered that problems such as the number of
intermediaries and methods to be employed in motivating and controlling the
intermediaries. The selection of these intermediaries begins with the knowledge of
ultimate customers their needs and desires for distribution services.
The number of intermediaries employed will be determined by customer
conveniences and economies of exclusive distribution. The company must choose
whether to attempt extensive, selective or exclusive distribution or combination of
all the three types of distribution. The decision is made after careful analysis of
product, consumer, dealers, company objectives and policies and the conflict with
in the channels and any other relevant factors.
As relating to BALAJI WAFERS PVT LTD it considers the indirect
extensive distribution channel. When the necessity of appointment of dealers and
other channel member arises due to large area of market and more demand the
company selects a channel member by following ways.

1. They give first preference to the parties who made application in past.
2. If there is no application, the company gives advertisement by appropriate
advertising sources.
3. After giving advertisement the application is received in prescribed form by
fax, post of nay other communication media, then it is sorted out and
eligible application is filed.

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4. In the next stage the application is referred in detail, which is filed in above
stage and the channel is selected after making the following inquiry.
I. Inquiring through letter
II. Inquiring directly.
III. Checking the reference form other persons
IV. Inquiring the financial position of the applicant
V. Knowing the market reputation of person as well as firm

VI. Checking the history and background of the firm and inquiring
whether it has the vehicle facility or not?
VII. Whether they are having the godown facility because it’s must
requirement.

5. In the last stage, after appointing dealers deposit is taken and they are introduced
about the rules and regulation which channel members have to follow.

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 MARKETING MIDDLEMEN
In essence, a channel of distribution include the original producer the final
buyer and many middleman either wholesaler or those institution or those
institution or individual in the channel, which either take a little to the goods or
negotiate of sell in the capacity of an agent or broker. Thus, from the marketing
point of view the middlemen and intermediaries are the same. In all commodity
markets, whether primary or central, we have lots of middlemen acting as essential
functionaries.
On the basis of taking titles to goods these middlemen are divided into
parts:-

1) AGENT MIDDLEMEN
They are middlemen who do not take a little to goods, but help in the transfer of the
title the agent are classified into
 Broker
 Commission agent
 Sole selling agent
 Manufacturer agent
2) MERCHANDISING MIDDLEMAN
These intermediaries take both possession and title to goods in their own name.
They are classified as into as follows:-

 DEALER
Dealers are person who buy or resale product at either retailer or
wholesaler basis.

 DISTRIBUTOR\WHOLESALER
It is a general term used to mean wholesalers.

 STOCKIEST
This is a wholesaler but takes less active role compared to distributor.

 RETAILERS

A merchant or occasionally an agent whose business is selling directly to

the ultimate consumer.

So far as BALAJI WAFERS PVT LTD is concerned it utilizes the merchant

middlemen as a channel member. It includes the following intermediaries whose
chart representation is as follows:-

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 Company

Carry and forward department

Distributors

Dealers

Retailers

Consumers

DEALERS & DISTRIBUTORS &CARRY &

FORWARD AGENTS

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 1) DEALERS AND DISTRIBUTORS

By appropriate procedure the company appoints a dealer. This company has

appointed many dealers and distributors all over the Gujarat. The company has 225
dealers and 4 distributors the company gives fixed commission on purchase the rate
of commission is 7 to 7.5% there are no fixed quotas or no force to sell the
minimum number of products. They provide service to dealers as per the demand
and the delivery of the goods is done any where in Gujarat just within 2 days that is
within 48 hours the name of distributors and some dealers of the company are :-

 LIST OF DISTRIBUTORS

1. Mr. Vallabhbhai Kataria

Kataria Enterprise 3. Mr. Anil Chandani
Sole Distributor Swami Lilasa Enterprise
Saurashtra Sole Distributor
Gujarat Kutch

2. Mr. Paras Kataria 4. Mr. Rimal Kataria

Kataria Enterprise Kataria marketing consultancy
Sole Distributor Sole Distributor
Saurashtra Gujarat
Gujarat

 DEALERS

1. Mr. Hareshbhai Shanghvi

Vimal Agency 5. Mr. Sanjay &Rakesh
Junagadh Atmiya Sales Agency
Rajkot
2. Mr. Mahebub Sorvani
Akash Agency 6. Mr. Ashvin
Porbandar Ashvin Agency
Amreli
3. Mr. Pashidbhai
Ramis Sales Agency 7. Mr. Mukesh
Surendranagar Shrinathji Agency
Rajkot
4. Mr. Maheshbhai Mirani
Jamini Enterprise
Ahmedabad
8. Mr. Deepak
D. K. Sales Agency

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 Rajkot
10. Mr. Prakash
9. Mr. Sasin Shah Balaji Sales Agency
Parthil Traders Veraval
Ahmedabad

CARRY AND FORWARD AGENTS

In addition to dealers, company has appointed some carry and

forward agents carry and forward agent play a vital role in passing goods
from company to dealers. Dealers inform carry and forward agents and
carry and forward agents inform the company about the material
requisitions, and it is the responsibility of carry and forward agents to
provide goods to the dealers.

Kataria enterprise is the main carry and forward agent and it is also
the marketing consultancy firm for the BALAJI WAFERS PVT LTD which
is situated in Rajkot.

TERMS AND CONDITIONS

The producer must determine the conditions and responsibilities of
the participating channel members. The main element in the trade relation
mix is pricing, policies, condition of sales territorial rights and specific
services to be performed by each party.

The BALAJI WAFERS PVT LTD has the following type of rules
and regulations to channel members.

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 1. The delivery of goods must be delivered to every retailer for two
times within a week.
2. The order must be placed or registered before 24 hours of route day.
3. The dealers have not been consulted with manufacture as sales the
wafers and namkeen of any other company.
4. The dealer must insist to sales all the product of company.
5. They should be appropriately utilizing the allotted advertising
materials.
6. When the goods are reach according to order as requirement the
payment must be made by bank draft of by cash.
7. Order should be registered regularly.
8. The price of the product should be taken as per the price offered or
fixed by the company at some destination.
9. Every dealer must be submitting a retailers list of his allotted area
regularly to company, so that the company takes a decision
regarding the advertising and area.
10. The marketing must be made only within the boundary of area
allotted or fixed by the company.
If channel member breach any of the above rules and regulation of
the company can take back a dealership. Generally this kind of deal may not
be arising. In case this kind of problem arise then company first give chance
to rectify the error and take appropriate decision regarding dealership.

COMPENSATION TO CHANNEL MEMBERS

The channel members should be given certain compensation for the
service they provide to the company of course, it works as a source of
motivation to channel members. If proper and fair compensation is provided
to channel members then the intermediaries will work to its utmost
efficiency and good morale.

Compensation is made of several elements a fixed amount a variable

amount, expenses and price benefit and salary that give to middlemen some
fixed stable income. The variable amount, which might be commission or
bonus, is based on sales performance.

So far as BALAJI WAFERS PVT LTD is concerned this company

gives the fixed salary to its representatives. At the end of the year company

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also provide bonus and other facility like gift and articles, wafers and other
food product at concession rate, first aid facility etc.

In case of dealers, there is no requirement of any kind of

compensation because the company not imposed any kind of force to sale
fixed quota or achieves a particular target. The reason is that the company
also gives the fixed commission on the purchase quantity whether the
quantity is large or small. The company provides the goods to its dealer
directly within 48 hours after arriving or received the order. The company
also provides the best quality and fresh goods in very best packing to dealer
at right time and right place as per the requirement.

MOTIVATION TO CHANNEL MEMBERS

Intermediaries must be continuously motivated to their best job. The
terms that lead them to join the channel provide some motivation
stimulation channel member to top performance must start with
understanding of the intermediary’s needs and wants.
Channel member are very important part of the company without
channel of distribution, perhaps it is impossible to reach the produced goods
final consumer properly. Therefore the company can sell its product in the
market by their channel member with effectiveness and efficiently. That is
why every company must be motivated their channel members by different
way like:-

1. Higher margin
2. Special allowance
3. Sales contests etc.
Related to BALAJI WAFERS PVT LTD it provides positive motivation to
their channel member y following way:-
1. The company also motivate to their channel member by seasonal
scheme

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 2. Motivated by providing calendars high lighting BALAJI’s product
3. They also arrange the dealer’s diaro or dealers meeting in a year at
some destination.
4. Company also motivated to their dealers by accepting or receiving
the advice forms them for decision making work.
5. The company also motivates its dealers by solving their problem and
fulfills their requirement.
6. Company also does advertisement by wall painting and by other
sources on the other hand, company gives stickers, light board,
banners, kitchen, metal board etc so dealers display it and increase
the sales very easily. And also customer aware about the dealers
shop.
7. The company also provides the guarantee of 100% replacement
from customers; company solves the conflict and replaces the fresh
and qualitative goods. In this way dealer have confidence to solve
their customers problem.
EVALUATION OF PERFORMANCE OF
CHANNEL MEMBERS

The producer must periodically evaluate middlemen performance

against each standard as sales quota attainment, average inventory level,
customer delivery time, treatment of damaged and lost goods, co-operation
in promotion and training programs and middleman services owned to the
customer. The producers will discover an occasion that too much is being
paid to particular middleman for what they are actually doing.

In BALAJI WAFERS PVT LTD it evaluates the performance of

channel by market survey, direct contracting with channel member to know
the demand fluctuation and also by retailers and consumer opinion. The
company evaluates the performance of channel member with following
objectives:-

1. Whether services is regularly provided 2 times with a week to

retailer or not.

2. To know the behavioral aspect of dealers with company as well as

with the retailers.

3. To know the name and fame of the company in the public mind.

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 4. To know the market condition of the company’s product.

5. To know whether the dealer follows the rules and regulation

contracted with company at the time of taking a dealership.

6. To know the information regarding dealers about how they sale

other products of company.

7. To know whether the dealers utilize the advertising sources provided

to them or not.

Thus all the objectives are considered at the time of evaluating the
performance of the channel member by above prescribed way.

CHANNEL CONFLICT AND SOLUTION

No matter how well channel are designed and managed, there will
be some conflict, if for no other reason then the interest of independent
business enterprise do not always coincide. It is important to distinguish the
different courses that might provide channel conflict. Some courses are easy
to resolve other more conflict.
A major course is goal in compatibility e.g. the manufacturer may
want to achieve rapid market growth through low price policy. The dealers,
on the other hand may perform to work with high morale and loyalty. This
is difficult to solve.
The conflict might arise because of the great dependence of the
middlemen on the producer. Some times conflict arises on price decision
point and some times conflict arises on supply of goods and services
provided by dealers after selling the products.
During my visit in BALAJI WAFERS PVT LTD I never see any
kind of conflict or problem in channel of distribution. It is possible only
because the company provide speedy and supply of goods according to
needs of the channel member. There is not any kind of pushing system for
instance, if dealer purchase particular product then other product must be
purchased in some quantity.
In case if any problem arises among channel as regarding services,
supply of goods etc and any complain arrived from customer then the
company solves this conflict and complaint by following manner.
1. First of all finding what kind of problem is arising.
2. In second stage the problem is analyzed as:-

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 i. Why this problem arises?
ii. By whom this problem arises?
iii. When and where this problem arises?

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3. In the next stage, after analyzing the problem company contacted to
responsible person and aware them about this problem and give advice to
solve that kind of error and also give chance that this kind of conflict will
not arise.

4. In next stage after given the chance to rectify the error if channel member
not make any kind of solution or arrangement according to the situation
company takes back dealership form those people.

5. If the dealers have any problem about the company and other miscellaneous
problem then it is solved in dealer meeting, which arrange in a year at some
destination.

6. If the channel members have any other problem then company itself makes
contact direct to those channel members and tries to solve their problem in
best possible manner.

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 ADVERTISING THROUGH CHANNEL
The main purpose of every commercial organization is to promote
sales because it is only way to commercialize the product. That is why
advertising is a main and important tool to promote the product.
Advertising is one of the major tools of companies use to direct
persuasive communication to target buyers and public. We define
advertising as:-
“Any paid form of non personal presentation and promotion of
ideas, goods or services by an identified sponsor.”
Advertising is a form of mass communication. A sponsor who wants
to communicate about his product or service to his customers pays it. They
are different media for advertising the product, they are:-

1. Print media which involves :-

i. Newspapers
ii. Magazines
iii. Business books

2. Outdoor publicity which involves

i. Posters
ii. Wall paintings
iii. Electric sign board
iv. Sky writing
v. Sandwich man
vi. Vehicle advertisement

3. Direct mailing postal advertising which involves

i. Leaflets
ii. Sales letter or post cards
iii. Folders
iv. Booklets
v. Catalogue
vi. Brochures

4. Audio-visuals advertising which involves:-

i. Radio advertising
ii. Television advertising

5. Film advertising which involves:-

i. Documentary advertising
ii. Advertising film
iii. Sponsored advertising.

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Different media are selected depending upon the following factors:-
1. The financial allocation for advertising.
2. The nature of product and demand for it.
3. The type of products, their location and other characteristics.
4. The nature of competition
5. Cost of media, cooperation and promotional aids offered by media circular.
Many companies allow to dealers to advertise the product on behalf of the
company.
As far as BALAJI WAFERS PVT LTD is concerned it advertises its product by
different media as:-
1. Stickers
2. Light board
3. Banners
4. Kitchen
5. Metal board
6. Wall painting etc.

BENEFITS TO DEALERS BY ADVERTISING

1. Easy sale of product is possible since consumer is aware of the product and
its quality.
2. It supplements the selling activities
3. The dealers a like because they need not spent anything for advertising of
already a well advertised product share the reputation created.
4. It ensures more economical selling because selling overhead is reduced.
5. It enables them to have product information.

QUESTIONNAIRE

1. What is the level of channel of distribution?

2. How the channel decision taken?

3. Who are the marketing middlemen of the company?

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4. Who are the dealers of the company?

5. Who are the distributors of the company?

6. Who are the carry and forward agents of the company?

7. What are the rules and regulations for channel of distribution?

8. What is the compensation to channel member?

9. How do you evaluate the performance of channel member?

10. How do you deal with the channel conflict?

11. In which way do you advertise through channel?

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 PHYSICAL DISTRIBUTION SYSTEM

Sr. No Particulars Page No

1 Concept Of Physical Distribution System 66

2 Objective Of Physical Distribution System 67

3 Cost Of Distribution 68

4 Order Processing System 69

5 Inventory Control 70

6 Ware Housing Facility 71

7 Transportation 72

8 Questionnaire 73

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 CONCEPT OF PHYSICAL DISTRIBUTION
SYSTEM
The marketing process is not entirely simply by creating superb product and
by creating a customer by aggressive salesmanship delivering the product to the
customer at the right time and place is an equally important function in marketing.
In the process of marketing this vital function is called physical distribution.

A critical element in the distribution strength involves the actual movement

of the goods produced after their production and before their consumption on
before they reach in the hands of the final consumers. This function includes
various activities which are as under:-

1. Inventory control

2. Material handling

3. Packing

4. Warehousing

5. Transportation

6. Insurance

7. Banking services etc.

The producers and dealers perform these activities. Efficiency in the physical
distribution significantly influences a company’s channel for the marketing success.

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 OBJECTIVE EFFECT
OF
PHYSICAL DISTRIBUTION SYSTEM
Physical distribution system also effects the decision on channel of
distribution. If the product requires storage, it should be sold out through dealers
who own their own godown or storage facilities. If the company decides to manage
their own warehouses. What type of transport facility should be arranged to carry
the goods to the warehouses of its own or of middlemen. These factors should be
considered while taking decision on channel of distribution.

In BALAJI WAFERS PVT LTD the raw materials are to be supplied by the
trucks from the various sources. After making various products according the
demand or orders, goods are supplied to carry and forward and distributors goods
supply to dealers and the customers by rickshaws or by truck.

New method and technique have been developed that make the physical
distribution challenging task. The activity of physical distribution is necessary in
the modern marketing due to,

1. To minimize the cost of transportation

2. To minimize the cost of handling
3. To control over inventory
4. To minimize customer services
5. To make goods available to customer at the right time and place.
6. To follow the good order of processing system.

Thus the development of physical distribution facility has made the

production feasible through out the year at lower cost of production and
distribution.

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 COST OF DISTRIBUTION

For facilitating the flow of distribution of goods from producers to

consumers appropriate channel of distribution is very important for smoothly
running of channel of distribution, proper maintenance, implementation and
control, efficient handling should be needed so effective and efficient handling of
channel of distribution some should be incurred. Thus every company requires
allocating some portion of total cost for channel of distribution to efficient handling
at minimum cost.

Sot far as BALAJI WAFERS PVT LTD is concerned; it has an efficient

channel of distribution. It is provided better service and best quality to its ultimate
customers, which is most indispensable for capturing the more market with full
demand. Therefore, to handling the channel of distribution effectively and
efficiently, this company allocated 13.5% of the total cost of production. Moreover
it is well known that this company provide the services to its dealer with in 48
hours from receiving the order and dealer provides services to its retailers 2 times
within a week

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 ORDER PROCESSING SYSTEM
Order processing is considered as the key to customer service and
satisfaction. Order processing includes receiving, recording, filing and assembling
of product for dispatch. The amount of time required from the date of receipt to an
order up to the date of dispatch of goods must be reasonable and as short as
possible generally order cycle time must not exceed eight day.

Markets are now using a computer system to speed up order handling. A

firm must have standard processing of order, this procedure should also include
grand of credit invoicing and collecting of amount.

Order processing procedure affects customer service level in two ways:-

1. It affects order time (interval between two orders)

2. It affects the consistency of uniformity of delivery time.

Generally customer is interested much more in the consistency of delivery

time that is assured delivery within a fixed period always.

As regard to “BALAJI WAFERS PVT LTD” it has very efficient ordering

processing procedure. It has receiving order from channel member and directly
from retailer and customer also through post, fax, telephone, e-mail and other
communication media. After receiving order it is recorded and filed than goods are
dispatched to its dealers according to his order with orders of other customer of its
dealers according to his order with orders of other customer of its market area who
directly send the order to the company.

This company delivered the goods to its dealers only within 48 hours thus
according to my point of view, this company primarily interested in prompt,
punctual, safe and reliable delivery services.

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 INVENTORY CONTROL

Inventory is the physical stock of items which organization keeps hand for
efficient and continuous running of a production it reduces investment in inventory
but then also production should not suffer by that decision. It consist of
management of raw materials components parts finished goods, semi-finished
goods etc.

The proper procedure of system for controlling over inventory is known as

inventory control generally there are following type of standard in inventory
control.

1. The maximum
2. The minimum
3. The ordering point
4. The standard order

So far as BALAJI WAFERS PVT LTD is concerned it has a very good

inventory control system. It has followed an ordering point as standard of inventory
control. It purchases a raw material form various places according to need. If there
is excess in raw material then it is stored in store room, which is situated in location
area of the company. However generally there is no more excess raw material or
finished goods than the requirement. Because the raw material are purchased
according the demand of the market.

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 WAREHOUSING FACILITY

Storage warehouses are fixed facilities where we store our inventory usually
for a longer period. Warehouse creates time utility and can stabilize price over a
certain period. It can regularly market supplies according to changing market
demand time wise. We have private warehouses owned by user. There are also
public firm who sell storage space and professional firm who sell storage space and
perform many warehousing function on reasonable commission of fee.

In BALAJI WAFERS PVT LTD the main raw material is potato and in the
market seeing the more demand of potatoes the company purchases it in advance in
required quantity because all the raw materials are food items in nature there are
chances of being affected by the natural factors like heat, moisture, humidity which
is harmful to these raw materials. Therefore they are stored in such a way in
required quantity that they don’t get damaged from the effects of climatic and other
atmospheric changes.

The company is not having its own warehouse they utilize the public
warehouse for getting the required raw materials in time for instance it has a small
godown within the company promises which has the sufficient stock stored for
continuous production process.

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 TRANSPORTATION
Marketers need to concern with their company’s transportation decision
transportation choice will affect the product pricing, on time delivery, performance
and the condition of the goods when they arrive, all of which affect the consumer
satisfaction so transportation policy of the company should be such which ministers
the companies transportation cost which is included in the total product cost of the
unit produced. So it should be such which minimizes the total product cost and at
the same time able to maximize the customer satisfaction by providing right time
delivery.

There are many modes of transportation

1. Roadways
2. Seaways
3. Airways
4. Railways

BALAJI WAFERS PVT LTD uses only roadway transportation for the
movement of raw materials before and after production process for transporting
goods to company and to customer or its channel member and its ultimate customer
through dealers.

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 QUESTIONNAIRE

1. What is the cost of distribution?

2. How does the order processing system works?

3. How does the inventory control managed in the unit?

4. Do you have a warehouse of your own?

5. What kind of transport facility the company is using?

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 FUTURE PLAN

Future plan means the company forecasts about its future goals and tries to
achieve them at minimum cost and in the better way. Without any future target any
company cannot run for long period. Though future is always uncertain but we can
make it possible as our desire by making various creative efforts.

BALAJI WAFERS PVT LTD has achieved great success in establishing

good brand image, prestige and reputation over the consumer market.

BALAJI WAFERS PVT LTD located recently a new plant with high
technology and ultramodern computerized in Rajkot at Kalawad road. The
company is planning to sell its product at other states like Maharashtra, Rajasthan,
and Goa etc.

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 CONCLUSION

BALAJI WAFERS PVT LTD is the adventure of Gujarati Family. It is

located at GIDC Rajkot and almost all the cities of Gujarat they have their dealers.

In this company the internal relation between the workers and management
are very well. All the workers and management behave with each other as family
members. It is the plus point of the company. The management of the company is
well planned and very effective.

On the point of completing this visit report I am concluding that BALAJI

WAFERS PVT LTD is very well developed, well organized and progressive
company.

My heartily best wishes are always with them for their great sparkling and
bright future.

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 SWOT ANALYSIS:-
The following are the strength, weakness, opportunity, and threats of
BALAJI WAFERS PVT LTD:-

 STRENGTH
1. Balaji is an established brand in region of Gujarat hence it enjoy
very good brand name.

2. Balaji has a strong distribution network in Gujarat.

3. Balaji is the first company to launch the wafers in Gujarat market.
4. Company gives healthy profit margin to retailers so they are also
very satisfied with company’s product.

5. To maintain quality at any cost is the first and strong object of the
company.

6. Balaji having the one and only fully automatic plant for production
in Gujarat.

7. Balaji has a long experience in relating region of Gujarat. Hence it

can use them as an advantage to establish its leaders in the market.

 WEAKNESS
1. Balaji does not aggressively advertise on T.V. or in other media.
2. In this company there is no facility of own warehouse.

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 OPPORTUNITY
1. Balaji is a well known established brand in wafer market in Gujarat.
Hence it can use its brand name further established itself in the
national market.
2. As the real income of the people increases day by day, there are lots
of avenues that can be explored by the company to attract potential
market in the urban, semi urban and rural areas. The company is
now launching the products in Maharashtra state.

 THREATS:-

Balaji switching amongst consumer has increased due to new entrances

offering various products in the market so it may be possible that the regular
customer of BALAJI start trying to buy other brands of wafer. Hence the company
must keep upgrading its product list to suit and match the faster and ever changing
demand of customer and to give them maximum satisfaction.

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 FINDINGS AND RECOMMENDATIONS:-

 FINDINGS

1) AVAILABILITY OF PRODUCT
In relation to this question all the retailers replied positively, which shows
100% availability of all the products of BALAJI on time without any delay.

2) POPULARITY OF THE PRODUCT

When I asked about customer’s preference or about the product highly
demanded by the customers, the retailers said that

a. Highest demand is for potato chips

b. Second is for Farali Chevdo
c. Third is for namkeens like ratlami sev etc.
d. Fourth is for sing.

3) OPTION FOR UNSOLD GOODS

For unsold goods dealers should provide option like money back or
changing of the stock etc. BALAJI dealers also give the option of
replacement it is one of the good techniques of promoting the product.

All the retailers got replacement facility however in reality most of the
retailers said that there hasn’t been the case of unsold stock.

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 RECOMMENDATION

BALAJI WAFERS PVT LTD is profit making company. It works smoothly

since it is established there the company follows all the principles of physical
distribution and also follows standard ordering processing system and it has also
control the inventory by appropriate department. The distribution channel of the
company works efficiently and effectively towards achieving the goals with full of
confidence and cooperation.

Therefore there is no need for recommendation to the company but I feel

that if the company starts advertising on large scale on television media it can
expand the business from Gujarat to whole of nation and after that even at
international level because the quality is high of the product so I see a bright future
of this company in India.

All my best wishes are with them for sparkling future.

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 BIBLIOGRAPHY

1) BOOKS

 Marketing Management
 Philip Kotler

 Marketing Management
Verma and Agarwal

 Marketing Management
S.A. Sherlakar.

2) REPORTS

Some old reports for reference.

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 LIMITATIONS OF THE REPORT
1. The following are the limitations of my project report

2. The report is prepared for education purpose

3. Much information has been taken from secondary sources; therefore it is

quite possible that it may have some misleading information.

4. The report is affected by personal influence.

5. It is not possible to include each and every information of the company in

the report.

6. There may be printing mistakes in the report due to oversight.

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