pavizham rice organizational study.pdf
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Organizational study at Pavizham RiceTRANSCRIPT
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EXECUTIVE SUMMARY
This project entitled “A study on dealer satisfaction of Pavizham Healther Diet Pvt Ltd. The
sample size is 100 dealers in and around Ernakulam and Idukki. In today’s economy all
manufacturers need to pay attention on how to build strong long-term relationships with their
dealers’ chain. In fact, it has been demonstrated that short term policies aimed to provide dealers
immediate benefits (e.g., price discount) may prevent the development of long term and fruitful
relationships. Also supporting dealers in promoting manufacturers’ products has been proved as
a sustainable strategy in the long run.
These issues have been debated in then field of Distribution channel management. In particular,
researchers emphasized that manufactures cannot ignore in designing long term growth-oriented
policies, strategies aimed dealers satisfaction. Furthermore, in order to successfully plan business
growth, it has been remarked literature the central role played by communication. In fact,
researchers underlined the failure in channel communication is likely to affect the relationship
between organizations and its own dealer structure. Such remarks suggest that in order to
effectively build a long term relationship with an own dealers chain, a manufacturer has to adopt
a systematic approach aimed to foster market consensus on aside, and mutual benefits on the
other side. In particular, in the innovative and revolutionary high-tech industry, manufacturers in
order to achieve the desired sales revenues cannot ignore the need to continuously promote
activities aimed to both update dealers skills and motivation.
This paper is the result of a research project conducted by the researcher with a manufacturer
operating in the FMCG Industry. It is based on the hypothesis that in order to successfully
support dealers, manufacturer has to design long term oriented policies aimed both build up a
growing potential customers awareness of company product a side, and increase dealers skills
and motivation on the other side.
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1.1 INDUSTRY PROFILE
FAST MOVING CONSUMER GOODS
Products which have a quick turnover, and relatively low cost are known as Fast Moving
Consumer Goods (FMCG). Fast Moving Consumer Goods (FMCG) goods are popularly named
as consumer packaged goods. Items in this category include all consumables (other than
groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps,
detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and
household accessories and extends to certain electronic goods. These items are meant for daily of
frequent consumption and have a high return. A major portion of the monthly budget of each
household is reserved for FMCG products. The volume of money circulated in the economy
against FMCG products is very high, as the number of products the consumer use is very high.
Competition in the FMCG sector is very high resulting in high pressure on margins. FMCG
companies maintain intense distribution network. Companies spend a large portion of their
budget on maintaining distribution networks. New entrants who wish to bring their products in
the national level need to invest huge sums of money on promoting brands. Manufacturing can
be outsourced. A recent phenomenon in the sector was entry of multinationals and cheaper
imports. Also the market is more pressurized with presence of local players in rural areas and
state brands.
Examples of FMCG generally include a wide range of frequently purchased consumer products
such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as
well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods.
FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft
drinks, tissue paper, and chocolate bars. A subset of FMCGs is Fast Moving Consumer
Electronics which include innovative electronic products such as mobile phones, MP3 players,
digital cameras, GPS Systems and Laptops. These are replaced more frequently than other
electronic products. White goods in FMCG refer to household electronic items such as
Refrigerators, T.Vs, Music Systems, etc.
FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily
deals with the production, distribution and marketing of consumer packaged goods. The Fast
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Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the
consumers at a regular interval. Some of the prime activities of FMCG industry are selling,
marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain ,
production and general management. FMCG industry provides a wide range of consumables and
accordingly the amount of money circulated against FMCG products is also very high. The
competition among FMCG manufacturers is also growing and as a result of this, investment in
FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the
fourth largest sector. Some of the merits of FMCG industry, which made this industry as a
potential one are low operational cost, strong distribution networks, presence of renowned
FMCG companies. Population growth is another factor which is responsible behind the success
of the industry.
FMCG IN INDIA
The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth largest
sector in the economy and is responsible for 5% of the total factory employment in India. The
industry also creates employment for 3 m people in downstream activities, much of which is
disbursed in small towns and rural India. This industry has witnessed strong growth in the past
decade. This has been due to liberalization, urbanization, increase in the disposable incomes and
altered lifestyle. Furthermore, the boom has also been fuelled by the reduction in excise duties,
de-reservation from the small-scale sector and the concerted efforts of personal care companies
to attract the burgeoning affluent segment in the middle-class through product and packaging
innovations. Unlike the perception that the FMCG sector is a producer of luxury items targeted at
the elite, in reality, the sector meets the everyday needs of the masses. The lower-middle income
group accounts for over 60% of the sector's sales. Rural markets account for 56% of the total
domestic FMCG demand. Many of the global FMCG majors have been present in the country for
many decades. But in the last ten years, many of the smaller rung Indian FMCG companies have
gained in scale. As a result, the unorganized and regional players have witnessed erosion in
market share.
In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant force in
the FMCG sector well supported by relatively less competition and high entry barriers(import
duty was high). These companies were, therefore, able to charge a premium for their products. In
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this context, the margins were also on the higher side. With the gradual opening up of the
economy over the last decade, FMCG companies have been forced to fight for a market share. In
the process, margins have been compromised, more so in the last six years (FMCG sector
witnessed decline in demand).
OVER VIEW OF INDIAN FMCG MARKET
India offers a large and growing market of 1 billion people of which 300 million are middle class
consumers. India offers a vibrant market of youth and vigor with54% of population below the
age of 25 years. These young people work harder, earn more, spend more and demand more
from the market, making India a dynamic and inspirational society. Domestic demand is
expected to double over the ten-year period from 1998 to 2007. The number of households with
"high income" is expected to increase by 60% in the next four years to 44 million households.
India is rated as the fifth most attractive emerging retail market. It has been ranked second in a
Global Retail Development Index of 30 developing countries drawn up by A T Kearney. A.T.
Kearney has estimated India's total retail market at $202.6 billion, is expected to grow at a
compounded 30 per cent over the next five years. The share of modern retail is likely to grow
from its current 2 per cent to 15-20 percent over the next decade, analyst’s feel. The Indian
FMCG sector is the fourth largest sector in the economy with a total market size in excess of
US$ 13.1 billion. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4
billion in 2015. Penetration level as well as per capita consumption in most product categories
like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market
potential. Burgeoning Indian population, particularly the middle class and the rural segments,
presents an opportunity to makers of branded products to convert consumers to branded
products. India is one of the world’s largest producers for a number of FMCG products but its
FMCG exports are languishing at around Rs 1,000 crore only. There is significant potential for
increasing exports but there are certain factors inhibiting this. Small-scale sector reservations
limit ability to invest in technology and quality up gradation to achieve economies of scale.
Moreover, lower volume of higher value added products reduce scope for export to developing
countries. The FMCG sector has traditionally grown at a very fast rate and has generally
outperformed the rest of the industry. Over the last one year, however the rate of growth has
slowed down and the sector has recorded sales growth of just five per cent in the last four
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quarters. The outlook in the short term does not appear to be very positive for the sector. Rural
demand is on the decline and the Centre for Monitoring Indian Economy (CMIE) has already
downs called its projection for agriculture growth in the current fiscal. Poor monsoon in some
states, too, is unlikely to help matters. Moreover, the general slowdown in the economy is also
likely to have an adverse impact on disposable income and purchasing power as awhole.
The year holds a lot of promise, if growth is good and inflation is lower. “Volume growth and no
price reduction is good for FMCG,” said Mr. Vyas. He, however, said fresh investments were
critical for sustained growth in the economy. Another serious challenge which the industry is
faced with, said Mr. Banga, is consumer promotions where freebies are threatening to lead to the
commoditization of the industry. “I believe that the industry must take a serious note of it. It is
threatening the very premise on which the FMCG industry stands today (i.e. branding),”
Mr.Banga added. As to how HLL, which is a leading FMCG company, would boost its volumes
and maintain its margins, Mr. Banga said the only way out was branding. He denied that HLL
was cutting down upon its advertising spends, which he said, was only on a quarter-on-quarter
basis. The total advertising expenditure for HLL declined to Rs 182.74 crore during the third
quarter ended September 30, 2003, from Rs 217.80 crore. One of the reasons is the fact that the
Conditional Cash Transfer scheme (CCT) is gathering support as a replacement for myriad
welfare schemes. Along with the rural employment guarantee scheme, loan waivers and increase
in prices at which agricultural products are bought, the CCT could solve the FMCG’s problem of
unpredictability of agricultural income and the associated fall in market demand. The mainstay
of the rural thrust of FMCG companies is based on the hope that there are ‘disposable incomes’
lying untapped in the hinterland: if the rural population spends some of this, it will certainly
boost demand in the current recession. With urban consumption in decline or stagnating because
of the economic slowdown, FMCG companies have been hit hard. The idea is to give a ‘choice’
to the rural customer to shift to branded products, from traditional, unbranded merchandise from
the non organised sector. “The growth is in rural”,says India’s top marketing head, Rama
Bijapurkar. Rural India constitutes over 60 percent of the country’s total consumer base. It’s
estimated that rural markets hold55 percent of total LIC policies, 50 percent of the market for
televisions, fans, bicycles and wristwatches — and a massive 70 percent of the market for toilet
soap consumption. The Rs 65,000 crore debt waivers announced last year helped 3.6million
farmers and made them eligible to fund the next crop. The Centre continued to provide short-
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term crop loans at 7 percent interest up to Rs 3 lakh. Anupturn in agriculture was seen in the
UPA’s interim budget of 2009-10, where the annual growth rate of agriculture was posted at 3.7
percent. Added to this was the election-inspired increase in minimum support prices (MSP) in
2008-09.Announced in the season ahead of the general election, the MSP for paddy (Rs 550 per
quintal in 2003-04) rose to Rs 900; for wheat, the MSP, which was Rs 630 per quintal, rose to Rs
1,080. It also led to massive procurement of food grains this year.Factors like this, according to
analysts, have created ‘disposable incomes’ which the rural consumers should be, ideally, keen
on spending on consumer goods. The economic survey 2012-2013 says rural India spends, on
average, 55 percent on food and 45 percent on non-food items like clothing, consumer durables,
education and health. And its spend on urban costs of living such as electricity, commuting, fuel
and rent is negligible. That level of spending on regular consumables is good news for FMCG
manufacturers. Add to that the fact that, unlike their urban counterparts, rural citizens’ incomes
are relatively better preserved from market fluctuations and real estate shocks. For corporate, the
rural hinterland had earlier meant high investment because of poor infrastructure, absence of
storage services, no electricity, water or finance facilities. In times of recession, the problems
appear surmountable. It’s expected that catching the villages’ fancy should be far easier than that
of the info-fatigued urban buyer. The rural market already accounts for 50 percent of FMCG
products like pressure cookers, tea, branded salt and tooth powder. Companies expect to increase
market share and to add products to the rural portfolio. According to ASSOCHAM, which
announced early this year that the FMCG sector is pegged to grow at 40 percent in the rural
market, “rising rural incomes, healthy agricultural growth, boost in demand, rising consumerism
and better penetration of FMCG products,’’ are the reasons for this projection. Agrees Deepak
Jolly, a director with Coca-Cola India: “The rural thrust in India today is huge. In many ways, I
would say it is the main driver for the markets.” Among the few things that the FMCG
companies are seeking from this budget is that the taxes and duties that have been reduced by the
government to promote the sector should not be revoked. If only they could have the same
impact on the monsoon: any weakening or failure there will considerably affect the purchasing
power of villagers and volumes of FMCG products. It’s in this context that the gathering support
for the conditional cash transfers (CCT) scheme should be seen — it proposes that the
government deposit an amount in the account of beneficiaries identified according to poverty
criteria. The amount is deposited in the name of the woman member of the household and
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accessed only if children go to school or attend the health centre. Farmers are spending more
than ever to cultivate; villagers are spending more than ever to buy food. The government hopes
to bring the National Food Security Bill that provides monthly 25kg to BPL families at Rs 3 per
kg. It would be interesting to watch if the ‘disposable income’ left after such subsidies will be
used for consumption.
PRESENT SCOPE OF THE FMCG SECTOR
The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the
economy. A well-established distribution network, intense competition between the organized
and unorganized segments characterize the sector. FMCG Sector is expected to grow by over
60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been
estimated that FMCG sector will rise from around Rs 56,500 crores in2005 to Rs 92,100 crores
in 2012. Hair care, household care, male grooming, female hygiene, and the chocolates and
confectionery categories are estimated to be the fastest growing segments, says an HSBC report.
Though the sector witnessed a slower growth in2002-2004, it has been able to make a fine
recovery since then.
For the period, only the processed foods companies — Britannia, Cadbury and Nestle —
managedto buck the trend and showed growth in sales. Tata Tea, Nirma, HLL, SmithKline and
Reckitt reported more than eight per cent YoY decline in sales for the period. As compared to the
previous quarter, Nestle, Godrej and Tata Tea showed improving trend in sales. The categories to
witness the brunt of slowdown in consumer spending have been toilet soaps, packaged tea,
toothpaste, nutritional beverages, milk foods and digestives, which have registered double-digit
decline in volumes. With the organized biscuit companies gaining at the cost of the unorganized
sector, biscuit volumes grew by 10 per cent YoY. Consumer demand continued to be weak
causing overall FMCG sales to slide by 4.4% in May 2002in value terms, compared to the same
period a year ago. Market leader Hindustan Lever Limited's (HLLs) sales were down 10% in
May, in line with the earlier two months, as rural demand failed to prop up sales. The segments
to witness sales growth during the period have been shampoo, vanaspati, and mosquito
repellants, chocolates, vermicelli andhair oils. The growth potential for FMCG companies looks
promising over the longterm horizon, as the per-capita consumption of almost all products in the
country is amongst the lowest in the world. As per the Consumer Survey by KSATechnopak, of
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the total consumption expenditure, almost 40% and 8% was accounted by groceries and personal
care products respectively. Rapid urbanization, increased literacy and rising per capita income
are the key growth drivers for the sector.
Around 45% of the population in India is below 20 years of age and the proportion of the young
population is expected to increase in the next five years. Aspiration levels in this age group have
been fuelled by greater media exposure, unleashing a latent demand with more money and a new
mindset. In this backdrop, industry estimates suggest that the industry could triple in value by
2015 (by some estimates, the industry could double in size by 2010). Testing times for the
FMCG sector are over and driving rural penetration will be the key going forward. Due to
infrastructure constraints (this influences the cost-effectiveness of the supply chain), companies
were unable to grow faster. Although companies like HLL and ITC have dedicated initiatives
targeted at the rural market, these are still at a relatively nascent stage.
The bottlenecks of the conventional distribution system are likely to be removed once organized
retailing gains in scale. Currently, organized retailing accounts for just 3% of total retail sales
and is likely to touch 10% over the next 3-5 years. In our view, organized retailing results in
discounted prices, forced-buying by offering many choices and also opens up new avenues for
growth for the FMCG sector. Given the aggressive expansion plans of players like Pantaloon,
Trent, Shopper's Stop and Shoprite, FMCG sector has a bright future.
India offers a large and growing market of 1 billion people of which 300 million are middle class
consumers. India offers a vibrant market of youth and vigor with 54% of population below the
age of 25 years. These young people work harder, earn more, spend more and demand more
from the market, making India a dynamic and aspirational society. Domestic demand is expected
to double over the ten-year period from 1998 to 2007-. The number of households with "high
income" is expected to increase by 60% in the next four years to 44 million households.
India is rated as the fifth most attractive emerging retail market. It has been ranked second in a
Global Retail Development Index of 30 developing countries drawn up by A T Kearney. A.T.
Kearney has estimated India's total retail market at $202.6 billion, is expected to grow at a
compounded 30 per cent over the next five years. The share of modem retail is likely to grow
from its current 2 per cent to 15-20 percent over the next decade, analysts feel.
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The Indian FMCG sector is the fourth largest sector in the economy with a total market size in
excess of US$ 13.1 billion. The FMCG market is set to treble from US$ 11.6 billion in 2003 to
US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product
categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped ;
market potential. Burgeoning Indian population, particularly the middle class and the rural
segments, presents an opportunity to makers of branded products to convert consumers to
branded products.
India is one of the world's largest producers for a number of FMCG products but its FMCG
exports are languishing at around Rs 1,000 crore only. There is significant potential for
increasing exports but there are certain factors inhibiting this. Small-scale sector reservations
limit ability to invest in technology and quality up gradation to achieve economies of scale.
Moreover, lower volume of higher value added products reduce scope for export to developing
countries. The FMCG sector has traditionally grown at a very fast rate and has generally
outperformed the rest of the industry. Over the last one year, however the rate of growth has
slowed down and the sector has recorded sales growth of just five per cent in the last four
quarters.
The outlook in the short term does not appear to be very positive for the sector. Rural demand is
on the decline and the Centre for Monitoring Indian Economy (CMIE) has already downscaled
its projection for agriculture growth in the current fiscal. Poor monsoon in some states, too, is
unlikely to help matters.
Moreover, the general slowdown in the economy is also likely to have an adverse impact on II
disposable income and purchasing power as a whole. The growth of imports constitutes another
problem area and while so far imports in this sector have been confined to the premium segment,
FMCG companies estimate they have already cornered a four to six per cent market share. The
high burden of local taxes is another reason attributed for the slowdown in the industry. At the
same time, the long term outlook for revenue growth is positive. Give the large market and the
requirement for continuous repurchase of these products, FMCG companies should continue to
do well in the long run. Moreover, most of the companies are concentrating on cost reduction I
and supply chain management. This should yield positive results for them.
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CURRENT SITUATION OF THE FMCG SECTOR
The growth potential for FMCG companies looks promising over the long-term horizon, as the
per-capita consumption of almost all products in the country is amongst the lowest in the world.
As per the Consumer Survey by KSA-Technopak, of the total consumption expenditure, almost
40% and 8% was accounted by groceries and personal care products respectively. Rapid
urbanization, increased literacy and rising per capita income are the key growth drivers for the
sector. Around 45% of the population in India is below 20 years of age and the proportion of the
young population is expected to increase in the next five years. Aspiration levels in this age
group have been fuelled by greater media exposure, unleashing a latent demand with more
money and a new mindset. In this backdrop, industry estimates suggest that the industry could
triple in value by 2015 (by some estimates, the industry could double in size by 2010).In our
view, testing times for the FMCG sector are over and driving rural penetration will be the key
going forward. Due to infrastructure constraints (this influences the cost-effectiveness of the
supply chain), companies were unable to grow faster. Although companies like HLL and ITC
have dedicated initiatives targeted at the rural market, these are still at a relatively nascent stage.
The bottlenecks of the conventional distribution system are likely to be removed once organized
retailing gains in scale. Currently, organized retailing accounts for just3% of total retail sales and
is likely to touch 10% over the next 3-5 years. In our view, organized retailing results in
discounted prices, forced-buying by offering many choices and also opens up new avenues for
growth for the FMCG sector.
RECENT DEVELOPMENTS IN FMCG SECTOR
FMCG sector is no doubt registering an uptrend in growth. According to CNBC, FMCG sector
growth story will continue because of the positive budget. Nevertheless, there are some barriers
to the growth of the sector. Indirect taxes constitute no less than 35% of the total cost of
consumer products - the highest in Asia. Finance Minister proposed to introduce an integrated
Goods and Service Tax. This is an exceptionally good move because the growth of consumption,
production, and employment is directly proportionate to reduction in indirect taxes.
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THE FUTURE OF FMCG SECTOR
As modern life accelerates and technology continues to advance, people expect everyday
products to keep up too. That's why FMCG companies are always on the lookout for the next
great innovation.
New product launches, new schemes, new brands, new brand extensions, and new marketing
activity are springing up across the sector. But that doesn't automatically mean that they'll all
survive. It's innovative thinking and smart working that will ensure individual companies in
FMCG succeed.
Companies are also beginning to use the emerging technologies to capture essential data and new
analytical models are being developed to measure ROI. It's a move that is transforming brand
relationships and customer experiences advertising across the sector. Digital marketing platforms
are being used to make sure produce capture people's imaginations. As Chris Lowe, Chief
Marketing Officer for Coca-Cola says, be effective in today's world, "you have to focus on the
basic relationship with the consumer“. This kind of thinking means that blogs, social media and
other digital technologies are being used to market products in a whole new way. The FMCG
companies have to react fast to survive, as there's no room for complacency. Increasing brand
awareness through social media is a key strategy for any savvy FMCG firm.
These changes all make for a very exciting time in the FMCG/CPG industry and the ideal time to
get involved. With strong cash flows, higher return on capital employed and steady growth
already clear to see, the prospects for the future look good.
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1.2 COMPANY PROFILE
Pavizham, the brand name in which Nambiyattukudy group markets rice, is today the No:l
selling brand in Kerala and has become a household name. Namibiyattukudy group is one among
the several industrial groups came up in the decade of the 20th century and is now considered to
be the premier manufactures of rice and rice products in the state of Kerala with six independent
units for the manufacture of the rice. There are no other industrial groups in the state with the
production capacity as that there are five more units under the same group of manufacturing
various other products.
Pavizham Healthier Diet (P) Ltd is an ISO 9001- 2000 Company which was incorporated in
2003. Pavizham is the generic name of rice and rice products produced by 14 individual
industries located in about 50 acres of land at Aimury in Koovappady Village ,Perumbavoor
Ernakulam DT. The marketing arm of these concerns is Pavizham Healthier Diet (P) Ltd. Apart
from rice and rice products , the company also markets Tamarind, salt, coconut oil, rice bran oil
etc. These units are owned by various members of the Nambiyattukudy family and the current
patriarch Mr. N P George is referred as the Chairman and his brother Mr. N P Antony is the
Managing Director. Their father Late Mr. Pappachan entered into conventional rice milling in
early eighties, and before he could witness the modern rice mill which he had established
operational ,he departed to heaven. The brothers thereafter jointly along with their mother and
other members of the family built up the rice milling empire as the people see now. Innovative
ideas, uncompromising stand on quality, a humanistic approach based on Christian values has
over the years seen the various units flourishing and prospering. Modern milling machineries
imported from China, a cogei power plant, a waste water treatment plant based on CSIR
technology make the mills unique Company is a pioneer in various value addition options for
rice and its by-products.
Pavizham Healthier Diet (P) Ltd are being treated as the provider of the rice of the traditional
taste of Kerala due to its superior quality and affordable price. High nutrition value of sortex rice
and rice products are being manufactured using high end technology meet the customer needs.
The rice and rice products of the company reach at the malayalees not only in their home state,
but wherever they are, be it in US, Europe or Africa. The marketing network the company is
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elaborate as it services over 3,000 retailers spread all over the State throi its own vehicle fleet
and a dealer network for metros like Bombay and Delhi.
For over two decades they have been providing the malayalees world over their most favored
rice, the Double Boiled Matta Rice, the Kuthari as it is widely known. Pavizham rice mills are
not yet another business activity for them. It is a mission for them to provide quality rice at an
affordable price to the millions of brethrens. The Company is involved in the whole process and
it spans from sowing to harvesting and to milling i.e., from the farm to factory. The company
ensures the quality not by lab tests where white dressed staff with white gloves conduct
numerous tests on the products before proclaiming its quality. The Chairman, the Managing
Director and the executives take the same rice for their families from the central store, so also
hundred of our employees. This simple step ensures the quality of the rice. The quality is ensured
not by any designated department but by hundreds of people who are behind our entire
production process. A fistful of rice you hold is the result of dedicated toil of those hundreds
whom you may have never seen. Hold it closer to your hearts you can hear their heart beats, feel
their care and love for you. For you they are face less but they see your face in each of the grain
that passes through.
Mr. N P George, the Chairman and his brother Mr. N P Antony are not privileged to learn the
business scruples from the B Schools. They learnt it from Beloved Father who taught them that,
it is the quality of the product that ensures the market and not the tents you churn out. He taught
them that the best way to take care of the business is to take care of the men who are toiling hard
behind it. They went on by clinging to these seemingly simple principles, though hard it was.
The legacy that they have been following, gave them brilliant dividend in the form higher
productivity, good labour turnout, contended labour force etc. It is one of the companies with
trade unions
The company have a dedicated team of highly qualified team of professionals having wide
industry experience and knowledge of their concerned domain. They help in achieving
organizations' core objectives. They work by adopting client centric approach and established
rational and long term relationships with the clients. The staffs at all levels are well-
comprehended to meet the requirements of the clients and offer them products accordingly. The
Company, regularly organize training sessions to refresh their skills and for enhancing their
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expertise. It enjoys a unique place in the industry primarily due to the subtle quality of the
products. The quality of the products is unquestioned since it has complete state-of-the-art
infrastructure. All the procedures are completed in a brisk manner and the orders of the clients
are always met within the promised time frame. Packaging is given due consideration to ensure
that the products reach their destination in the desired condition. The warehouse of the Company
is well-furnished with the latest tools and machines, which helps to maintain the nutritional
values and freshness of the products. The Company have fast and convenient transport facility to
ensure the proper and quick delivery of our products. It has established spacious and modern
warehousing unit to ensure the safe and effective delivery of our products. In tandem with other
players in the market especially those in the international market, the processing of the products
is done using the latest scientific techniques.
The Company have a hi-tech factory with modem machines for the processing of the Rice and
Flour Items, Rice Flakes, Coconut Oil, Iodized Crystal Salt and Payasam Mix. Processing is
done in a clean and hygienic environment to ensure that the products are healthy, delectable and
free from impurities. Quality of the product is not allowed to be compromised at any level.
Superb quality of the products is the sole factor responsible for the success and the patronage for
the products in the domestic as well as overseas market. Rigorous steps are taken at all stages of
the production to ensure that the quality of the products remain intact and proper care of
hygiene is taken at the units and all the equipments are cleaned at regular intervals. All the
machines are operated by a crew of professionals, who are well-versed with the relevant
technical details. The infrastructure facilities of the Company are not second to none .The
Company have most modern, well equipped and spacious warehouse facilities
The Company strives for excellence in the quality of the products, competitive pricing and the
best services at all times. Rice and other products are processed under most hygienic conditions
using premium quality ingredients, procured from reliable vendors. The product are hygienic,
nutritious and delicious and is extensively demanded for superb taste, refresh aroma, luscious
flavors and immense health benefits. The Company is able to offer the products in bulk
requirements within stipulated time frame. It ensures that the quality is maintained at every stage,
right from the procurement of raw materials to the final dispatch of the consignments.
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One thing that Mr. Pappachan (late) was very particular about was that his workers must be
looked after well. He also believed that charity and prosperity are complementary. If you practice
the first, the later will follow. Both Mr, N P George and Mr. N P Antony liberally donated Cash
and the kind to orphanages, old homes, for medical assistance to the poor, for education purpose
of the deserving, providing matrimonial assistance and houses for the homeless. They patronized
every philanthropic activity that their Church conducted. Prompted by their mother, the brothers
thought of an Institution that shall commemorate the memory of their late Father. It culminated
in the formation of a Public Charitable Trust, viz., Nambiyattukudy Pappachan Memorial Public
Charitable Trust which was registered in October 2003, with a corpus fund provided by Mrs.
Aliya Pappachan, their mother. Ever since the formation of the Trust, most of the charitable and
Philanthropical services of the family are routed through the Trust.
HISTORY OF THE ORGANISATION
Nambiyattukudy Group is one among the several industrial groups came up in the last decade of
the twentieth century and is now considered to be the premier manufacturers of rice and rice
products in the State of Kerala with six independent units for the manufacture of rice. There are
no other industrial groups in the State with the production capacity as that of Nambiyattukudy
Group. In Addition to that there are five more units under the same group manufacturing various
other products. The following are the industrial units under the same management.
NAME OF THE COMPANIES PRODUCTION YEAR OF
ESTABLISHEMENT
LOCATION
Nambiyattukudy Modern Rice Mill Rice 1992 Koovappady
Nambiyattukudy Agro Mill Rice 1998 Koovappady
Nambiyattukudy Agro Industriesl Rice 1998 Koovappady
Natnbiyaukudy Food & Spices Rice 2001 Koovappady
Star Food Industries Beaten Rice 2001 Koovappady
Godwin Food Products Rice Powder 2002 Koovappady
Pavizham Healthier Diet ( P) Ltd Marketing 2004 Koovappady
16
X
AWARDS AND RECOGNITION
“In the arena of human life the honors & rewards fall to those who show their good
qualities in action “— Aristotle
The following awards and recognitions were bestowed with Pavizham Healther Rice
AWARDS
• Best Productivity Performance Award (small industries) by FACT M.K.K Nayar
Memorial Productivity Award 2006-2007
• Special Jury Award by Global Malayalee Council; Business Award 2004
• Best Unit Award by Khadi Utsav 03
• Best Entrepreneur Award-District Award 2003-2004
• Second Best Productivity Performance Award (small industries) by FACT M.K.K. Nayar
Memorial Productivity Award 2003-2004
• Second Best Productivity Performance Award (small industries) by FACT M.K.K.
Nayar Memorial Productivity Award 2004-2005 Kerala Utsavam 2008
• Best Entrepreneur Award -District Award 2001-2002
• 2nd International Rice Technology and Cultural Exhibition 2006
• Drisya Business Excellence Award 2008
RECOGNITION
• Govt, of Kerala Recognition for participating in Kerala Pavilion in IITF- 2006
• Khadi Utsav 2004 Exhibitor Certificate
• Kerala State Productivity Council Certificate 2006-07
• Khadi Utsav 2003 -Certificate for Best Working Unit
• Kerala State Productivity Council Certificate 2003-04
• Khadi Utsav 2003 -Exhibitor Certificate
• Department of Industries and Commerce District Award -Best Entrepreneur
• Department of Industries and Commerce Certificate 2003-04
• Certificate of Quality System Assessment
17
PRESENT
Since Kalady is the main center for the marketing of both paddy and rice the paddy produced in
the different states will reach the market at Kalady center. The various rice milling units located
in Kalady area and its subunits. The paddy procured is kept in the go down according to their
quality and the consumption is made according to the requirement of the consumer.
FUTURE SCOPE OF THE COMPANY
The company have a plan of direct marketing of products to each and every corner in Kerala. For
this they have bought small trucks for distribution. It is also a method to give job to the jobless
youth. They can hire the trucks from the company and can distribute the goods according to the
order. The company will provide them a ratio of the profit that they are getting from it.
PRODUCT PROFILE
RICE ITEMS
• Pavizham Jaya White Rice
Available in 2, 5, 10, 20, 25, 75 Kgs
• Pavizham Matta Broken Rice
Available in 1 Kg, 500gms
• Pavizham Sorted Long Grain Double Boiled Matta Rice
Available in 2, 5, 10, 20, 25, 75 Kgs
• Pavizham Sorted Single Boiled Matta Rice
Available in 2, 5, 10, 20, 25, 75 Kgs
• Orma Unda Rice
Available in 2, 5, 10, 20, 25, 75 Kgs
• Vadi Unda Rice
Available in 2, 5, 10, 20, 25, 75 Kgs
• Pavizham Kuruvai White Rice
Available in 2, 5, 10, 20, 25, 75 Kgs
18
FLOUR ITEMS
• Pavizham Idli Podi
Available In 1Kg, 500gms
• Orma Appam Podi
Available In 1Kg, 500gms
• Pavizham Puttu Podi
Available In 1Kg, 500gms
• Pavizham Pallapappam Podi
Available in 1Kg, 500Gms
• Pavizham Appam, Pathiri, Idiyappam Podi
Available in 1Kg, 500gms
• Pavizham Chemba Puttu Podi
Available in 1Kg, 500gms
• Orma Puttu Podi
Available in 1 Kg, 500gms
RICE FLAKES
• Pavizham Malta Roasted Rice Flakes
• Roasted Matta Rice Flakes
• Matta Rice Flakes
• White Rice Flakes
• White Nylon Rice Flakes
SALTS ITEMS
• Pavizham Iodized Free Flow Salt Available in IKg, 500gms
• Pavizham Iodized Cryatal Salt
Available in IKg, 500gms
19
PAVIZHAM TEA
Available in 1Kg, 500gms
PAVIZHAM TAMARIND
Available in 500, 250, 100gms
PAYASAM MIX
• Pavizham Palada Payasam Mix
Available in 200gms
• Pavizham Palada
Available in 200gms
20
1.3 NEED FOR THE STUDY
The study of dealer satisfaction is a known fact that the dealer is the main person who is in close
contact with the customers. Since, the customers are buying the products from the dealers not
from the manufacturer company; the customers usually report their problems regarding the
quality or services of the product to the respective dealers. So, the dealers are well aware of the
customer problems. Dealers also have a great influence over the customer’s purchase of a certain
brand. Because many of the customers used to have trust on the word of mouth of the dealers and
the customers also worth the dealer’s experience of the quality of a product of a particular brand.
So we can say that if the customers are satisfied then the dealer is also satisfied with the product
and also, if the dealer is satisfied with the customer’s feedback about any particular brand then
he would recommend that brand to more customers and, thus the sales will increase.
Moreover, researchers claim that if a dealer doesn't like the product or service, he will
recommend competitor- brands to his customers. So, to maintain or to increase the share of the
market pie and revenues, to enhance the brand value in this competitive market scenario, dealers
satisfaction study has become very important. Conducting dealer satisfaction research through a
third party has the advantage that the responses obtained are more reliable, as the respondents are
more frank with a third person. This is because in the case of third party research, the customer -
vendor relationship does not get affected.
1.4 SCOPE OF THE STUDY
In this study an attempt is made to know the level of dealer satisfaction in selling the product,
thereby understanding the performance and movement of the product ,welcoming suggestions
from the dealers on how to improve the movement of the product, incorporate new strategies in
the field of promotion also understand whether the dealers are satisfied with the schemes and the
overall service offered to them by the company as dealer can create wonders in selling the
product and can help the company in understanding the exact position of the product in the
market.
21
1.5 STATEMENT OF THE PROBLEM
The study is to find the dealer satisfaction this is done so as to have more number of satisfied
dealers. In this current competition prevailing in FMCG market it is essential to have more
number of dealer and that to satisfied dealers. It is also essential to know marketing strategy of
other companies in the market so that Pavizham Healthier Diet can incorporate new strategies in
the field of promotion, service and those enhance dealer satisfaction. The study also helps to
know more about the dealers and it result in good relation between the company and the dealers.
1.6 OBJECTIVE FOR THE STUDY
• To find out how the dealers rate the promotional activities carried down by Pavizham
Healthier Diet
• To know the satisfaction level of dealers
• To assess the product quality of the firm
• To know the business operation of the firm
• To find out whether there is any co relation between the experience and the type of
promotion they needed
• To know the factor that dealers take in to account before purchasing
1.7 LIMITATIONS OF THE STUDY
• The time span under which the project will be conducted can be regarded as the
constraint
• The study was based on the assumption that the respondents will always be truthful and
correct. But this assumption might not be true always
• The study depends upon responses of the respondents, who are believed to be giving the
right information. Thus the accuracy of the survey and its findings depends a lot on the
respondents and their responses
• This sample size cannot represent the features and characteristics of the universe to its
entirety
22
Marketing is “The management process which identifies anticipates and supplies customer
requirements efficiently and profitably”. “Marketing is a total system of interesting business
activities defined to Plan, piece, promote and distribution want satisfying products & services to
present and potential consumers” “Marketing is the performance of business activities that direct
the follow of goods and services from the producer to the consumer or user” A social and
managerial process, by which individuals and groups obtain what they need and want, through
creating and exchanging product and value with others. Customer satisfaction begins with a
difficult faith; it starts with a commitment to deliver the result for each customer which is also a
concern of the dealers. Hence for a manufacturing company, in order to satisfy its customers, it is
highly important to satisfy its dealers, as they are the direct customers to them. Establishing
satisfaction as the ultimate goal is like the other ultimate goals of business pursuit of higher
profits or shareholders wealth. Perfect dealer service or satisfaction is one that meets the
combined need satisfaction is a systemized service that involves the entire organization. But
many organizations have yet to develop this kind of awareness of dealer satisfaction strategy.
The dealer needs and value should influence every aspect of the organization strategy, employee
safety and performance, product and organization strategy, employee safety and performance,
product and service development, sales and marketing programs, operational procedures and
information and measurement system. Understanding the dealer is critical to the success of any
customer focus initiative, the first step in understanding the dealers is to listen to them. A
company needs to hear what its dealers are saying about its people, product service and vision.
Their information helps to develop meaningful product and service. Organizations need to listen
to their dealer satisfied, dissatisfied neutral and prospective. As one company executive said,
“talking to a satisfied customer is talking to me”. In the past, dealer satisfaction and service was
the responsibility of a separate organization that supported the dealer primarily after the sale.
Today, service is also likely to be interested with the every product accompany offers. High
dealer satisfaction comes from providing effective services. But giving that service is a
continuous activity. It means being efficient, reliable, courteous, curing and professional every
time. Marketing is a communication process that has the purpose of individuals or groups - that
are directly or indirectly able to purchase - aware of products and services that may satisfy their
existing or newly-identified needs and wants.
23
The Chartered Institute of Marketing, which is the world’s largest marketing body, defines
marketing as "The management process responsible for identifying, anticipating and satisfying
customer requirements profitably."Dealer Any person who carries on business in purchasing,
selling, supplying or distributing goods and also includes works contractor, company, Co-
operative Society, Broker, Commission Agent, Auctioneer or any other mercantile Agent for the
consideration of cash, commission and deferred payment. There are two types of dealer such as:
1) Registered dealer
2) Casual dealer
DEALER
Dealer is a person or firm engaged in commercial purchase and sale. Dealer may signify
firms that buy or resell products at retail or wholesale basis. A producer cannot sell all his
products directly to consumer, he has to depend upon intermediaries to push, off, his
products. A dealer is an intermediary who helps to market a product. A dealer is one who
purchase and sells products. A dealer may be a wholesaler or a retailer or a distributor or
any agents.
A dealer is a principal and not an agent. The dealer came in to existence when communications
were difficult with consumers and it is found necessary to have a point of distribution. The
dealers help the manufactures by formulating the policy of manufacturers according to the
demand and assist them in securing the markets for their goods. The dealers are also relieving the
manufactures from the necessity of having sales organizations. The manufactures are not put to
the task of collecting and securing orders and the numbers of accounts they have to open are
smaller compared to dealing directly with the consumer. Dealer generally enters in to forward
contracts for supply of goods with the manufactures do not accumulate heavy stocks. The dealers
are being close touch with consumers so they are in position to advice the manufacturer by
giving proper feedback about the customer’s requirements. The dealer occupies a very important
specialized position. He not only assist to the manufacture that also acts as the link in the chain
of distribution between the manufacturer and consumers for which purpose the dealer maintain
efficient and comprehensive organization. The dealer can assess the public demand and see that
24
marketable goods or manufacturer thus protecting the manufacture from wasteful and
indiscriminate production as well as the consumer against goods which are neither satisfaction
nor dissatisfaction of good value.
The volume of sales depends on the efficiency of a dealer who assesses the psychology of
consumers and takes appropriate steps to sell a product. It is the dealer who suggests to the
manufacturers the suitable media of advertisement and other promotional tools. Dealers are
searching for new marketing strategies to attract and hold customers. Dealers include all
activities involved in selling goods and services to those buying for resale or business use.
Dealers buy mostly producers and sell mostly to retailers or industrial consumers.
Dealer wants high marginal gain from manufacturers. The main objective of dealership is
earning profits. Dealership business is different from other business. The peculiar feature
of a dealer is dealing with one or more similar products. Dealers earn commission for
goods sold from the manufacturers. The commission depends upon the value of sales both
cash and credit. Now a days the demand for cement increases every year.
The manufacturers are not able to cover all the consumers directly. With the help of
dealers only they can reach the consumers. Dealer accepts income from business because
there is some guarantee of getting more commission from this business. Dealers demand
more commission from the manufactures, they cover the entire market within their locality.
They also sell cement in credit to regular customer.
DEALER SATISFACTION
Satisfaction in level of persons felt state resulting from company’s products perceives
performance in relational to the person’s expectations. Satisfaction is a function of the difference
between the perceived performance and expectations. Company seeks to win in today’s market.
The must track their declares expectations, perceive company performance and dealers
satisfaction. While assessing the satisfaction level a company must not conclude that it can get
full picture of dealer satisfaction and dissatisfaction by simply running complaints and
suggestions. As some times dealers may feel that their complaints are minor or that they will be
made to feel stupid , or that normally will be offered the results is that the company has need
25
Lesley lost dealers. Therefore companies instead of using complaints level as measure of dealer’s
satisfaction, obtaining a direct measure of dealer satisfaction of conducting periodic survey
would provide more appropriate measures. The questionnaire can be made to a random sample
of their recent customers. To find out how they fell about various aspects of the company’s
performance. They can also solicit dealers view on the competitor’s performance. The
respondents can be asked to list out problems they have, had with the offer and to list out
improvements they could suggest companies would also ask the respondents to rate various
elements of the offer in terms of the importance of each element and how well the company has
performed exclusive dealers needed to bring dealers satisfaction. Many dealers like to develop
exclusive channels for their products. The strategy in which the producer allows only certain
concepts to carry its products is called exclusive design when the producer requires that these
dealers should not handle expeditor products its strategy is called exclusive dealing, both parties
benefits from exclusive arrangements.
Dealer satisfaction for FMCG sector and its consequent impact on channel relationships has been
an important concern of both practitioners as well as researchers during the last three decades.
This is in reaction to a worldwide trend towards building closer, and more integrated
relationships between manufacturers and channel intermediaries. It is being realized that one of
the major prerequisites for achieving effective integration of channel operations is the existence
of high levels of commitment to the relationships. The focus of managerial decisions with regard
to channel management has thus shifted to a large extent on creating and maintaining
relationship commitment. As Morgan and Hunt (1994) in their seminal work on channel
commitment has put it “relationship commitment is central to all the relational exchanges
between the firm and its various partners”. Drawing from studies from diverse domains such as
marriage, social exchange, organizational behavior etc. they feel that, “Commitment and trust are
very important because they encourage marketers to
• Work at preserving relationship investments by cooperating with existing partners
• Resist attractive short-term alternatives in favor of the expected long-term benefits of
staying with existing partners and
• View potentially high-risk actions as being prudent because of the belief that their
partners will not act opportunistically”.
26
Dealer satisfaction is undoubtedly a major factor that could lead to greater levels of channel
commitment. Dealer satisfaction is defined as an overall positive affective state resulting from
the appraisal of all aspects of a firm’s working relationship with another firm (e.g. Frazier, Gill
and Kale 1989, Gaski and Nevin 1985). However, there exists considerable variation among
channel theorists on the exact definition of channel satisfaction (Andaleeb, 1995). In order to
reduce this apparent variation in conceptualization, Geyskins and Steenkamp (2000) proposed a
two way classification of channel satisfaction wherein satisfaction is defined in terms of its
economic antecedents and social antecedents. Economic satisfaction is described as “a channel
member’s evaluation of the economic outcome that flows from the relationship with its partners
such as sales volume, margins and discounts”. Social satisfaction on the other hand is defined as
a channel member’s “evaluation of the psychological aspects of its relationship in that
interactions with the exchange partner are fulfilling, gratifying and facile”.
Decision regarding the traders is the most critical decision facing the management. These
decisions intimately affect all other marketing decision. Dealers are the pivots in the marketing
effort. A dealer is a force to reckon with. A dealer significantly influences the decision making
process of local customers. A dealer is also well aware of the customer needs and wants. Thus
the marketing success or failure in many businesses is made at the dealer level. The dealer can
build a great deal of goodwill for the firm, carry its message to all pockets and win over new
customers. He can also be a source of strength to the firm in all its efforts at sales promotion and
publicity. A progressive firm would assign to the trader a pivot role in market penetration,
development and sales promotion if it always remembers that its marketing strength depends on
the strength of the dealers.
DEALER’S RELATION
Large manufacturers depends on dealer to sell their products, therefore good relations are most
important to them , every manufactures thus wants to motivate his distribution channel to sell
more of his own products. Here the manufacturer must realize that dealers are themselves
business men and must be viewed as customers and human beings rather than mechanical entities
for flow of his products The dealer interested in maximizing their profits thus good dealer
relations can be promoted if the manner is fair to his dealers in his behavior for example-
27
salesmen of some manufactures dump products on dealers through aggressive selling. Thereafter,
the dealer finds stocks are laying at heavy on his hands and he cannot sell those products by
adequately. Advertising products in the area concern the manufacturer should provide his dealers
with promotional literature; he should correspondent them as frequently as necessary to show
that the manufacturer is there to help the dealers to sell all and thus makes profit for them. He
may offer adequate trade discount, provided display facilitate and even arrange contests among
the dealers to motivate them towards better results. The manufacture should realize that the
company dealers are more important assets. If they are assisted with promotional help they will
appreciate effort and would be more in demand to support the company campaigns in
advertising.
28
3. METHODOLOGY
Methodology states how the research study was undertaken. This includes the specification of
research design, sources of data, method of data collection, the sampling and tools used.
3.1 RESEARCH DESIGN
The research design is the conceptual structure within which research is conducted; it constitutes
the blueprint for the collection, measurement and analysis of data.
3.2 UNIVERSE
The dealers of Pavizham Healther Diet in the entire Idukki and Ernakulam district concertedly
contributed to the universe.
3.3 SAMPLING
Simple random sampling was the method adopted for the selection of sample from the above-
mentioned population.
3.3.1 SAMPLE SIZE
The sample size selected for the study is limited to 100.
3.4 METHOD OF DATA COLLECTION
3.4.1 PRIMARY DATA
The primary data was generated through the questionnaire and interview soliciting the response
of the dealers of Pavizham Healther Diet.
Questionnaire
The questionnaire is well structured and non disguised form so that it is easily understandable
and answerable.
29
Interview
The interview method of collecting data involves presentation of oral-verbal stimuli and replay
in the terms of oral-verbal responses. Then the responses are filed up in the questionnaire, for
further analysis.
3.4.2 SECONDARY DATA
The secondary data was gathered from books, magazines and company websites.
3.5 TOOLS USED FOR ANALYSIS OF DATA
Statistical tables, Charts and Diagrams are used for the presentation of the data. The statistical
tools used for the study they are
Percentage Analysis
Percentage refers to special kind of ratio percentage used in marketing comparison between two
more series of data. Percentage are used to describe relationship. Since the percentage reduce
everything to a common base and these by allow meaningful comparison to be made.
30
Table 4.1 Respondents experience in dealership
Chart 4.1 Respondents experience in dealership
Interpretation
The above table shows that out of 100 dealers 30% are of having more than 10 years of
experience and 25% are of having 7-10 years of experience and 20% are of having 4-7 years of
experience and 15% are of having 1-4 years of experience and 10% are of having less than 1 year
of experience.
10%
15%
20%
25%
30% Less than 1 year
1-4 years
4-7 years
7-10 years
More than 10 years
Particular No of Respondents Percentage
Less than 1 year 10 10
1-4 years 15 15
4-7 years 20 20
7-10 years 25 25
More than 10 years 30 30
Total 100 100
31
Table 4.2 Respondents opinion regarding factors influenced to take the dealership
Chart 4.2 Respondents opinion regarding factors influenced to take the dealership
Interpretation
The above diagram shows that 30% of the dealers influenced the product quality to take
dealership. 25% are influenced the product demand.20% are influenced the brand image.15% are
influenced the attractive profit margin and 10% are influenced other factors to take the
dealership.
15%
20%
30%
25%
10%
Attractive profit margin
Brand image
Product quality
Product demand
Others
Opinion No of Respondents Percentage
Attractive profit margin 15 15
Brand image 20 20
Product quality 30 30
Product demand 25 25
Others 10 10
Total 100 100
32
Table 4.3 Respondents opinion regarding the quality of Pavizham products
Chart 4.3 Respondents opinion regarding the quality of Pavizham products
Interpretation
The above diagram shows that 40% of the dealers opinion that quality is excellent. 25% of the
dealers opinion that quality is average. 20% of the dealers opinion that quality is good. 10% of
the dealers opinion that quality is very poor. 5% of the dealers opinion that quality is poor.
40%
20%
25%
10%
5%
Excellent
Good
Average
Poor
Very Poor
Particular No of Respondents Percentage
Excellent 40 40
Good 20 20
Average 25 25
Poor 10 10
Very Poor 5 5
Total 100 100
33
Table 4.4 Respondents opinion regarding the product line/variety that Pavizham
Healthier Diet provides
Chart 4.4 Respondents opinion regarding the product line/variety that Pavizham
Healthier Diet provides
Interpretation
The above diagram shows that 40% of the dealers are of the opinion that the product line/ variety
is highly satisfied. 30% of the dealers are of the opinion that the product line/ variety is satisfied.
15% of the dealers are of the opinion that the product line/ variety is neutral. 10% of the dealers
are of the opinion that the product line/ variety is dissatisfied. 5% of the dealers are of the
opinion that the product line/ variety is highly dissatisfied.
40%
30%
15%
10%
5%
Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Particular No of Respondents Percentage
Highly satisfied 40 40
Satisfied 30 30
Neutral 15 15
Dissatisfied 10 10
Highly Dissatisfied 5 5
Total 100 100
34
Table 4.5 Respondents opinion regarding the pricing of Pavizham products
Chart 4.5 Respondents opinion regarding the pricing of Pavizham products
Interpretation
The above diagram shows that 40% of the dealers is highly satisfied with pricing. 22% of the
dealers is satisfied with pricing. 18% of the dealers is neutral with pricing. 14% of the dealers is
dissatisfied with pricing and 6% of the dealers is highly dissatisfied with pricing.
40%
22%
18%
14%
6%
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Particular No of Respondents Percentage
Highly Satisfied 40 40
Satisfied 22 22
Neutral 18 18
Dissatisfied 14 14
Highly Dissatisfied 6 6
Total 100 100
35
Table 4.6 Respondents opinion regarding the mode of payment
Chart 4.6 Respondents opinion regarding the mode of payment
Interpretation
The above diagram shows that 45% of the dealers mode of payment is by cash. 25% of the
dealers mode of payment is by cheque. 15% of the dealers mode of payment is by credit. 10% of
the dealers mode of payment is by instalment and 5% of the dealers mode of payment is by
demand draft.
45%
25%
15%
5%
10%
Cash
Cheque
Credit
Demand draft
Installment
Particular No of Respondents Percentage
Cash 45 45
Cheque 25 25
Credit 15 15
Demand draft 5 5
Installment 10 10
Total 100 100
36
Table 4.7 Respondents opinion regarding the expectation on promotional activity
Chart 4.7 Respondents opinion regarding the expectation on promotional activity
Interpretation
The above diagram shows that 30% of the dealers expecting discount coupon. 25% of the dealers
expecting gift prize. 20% of the dealers expecting price reduction. 15% of the dealers expecting
offers and 10% of the dealers expecting credit sales.
30%
25%15%
20%
10%
Discount Coupon
Gift Prize
Offers
Price Reduction
Credit Sales
Particular No of Respondents Percentage
Discount Coupon 30 30
Gift Prize 25 25
Offers 15 15
Price Reduction 20 20
Credit Sales 10 10
Total 100 100
37
Table 4.8 Respondents opinion regarding the satisfaction of promotional activities
Chart 4.8 Respondents opinion regarding the satisfaction of promotional activities
Interpretation
The above diagram shows that 40% of the dealers is highly satisfied with promotional activities.
25% of the dealers is satisfied with promotional activities. 15% of the dealers is neutral with
promotional activities. 12% of the dealers is dissatisfied with promotional activities and 8% of
the dealers is highly dissatisfied with promotional activities.
40%
25%
15%
12%
8%
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Particular No of Respondents Percentage
Highly Satisfied 40 40
Satisfied 25 25
Neutral 15 15
Dissatisfied 12 12
Highly Dissatisfied 8 8
Total 100 100
38
Table 4.9 Respondents opinion regarding the problem that face in the delivery and
purchase of Pavizham Healthier Diet product
Chart 4.9 Respondents opinion regarding the problem that face in the delivery and
purchase of Pavizham Healthier Diet product
Interpretation
The above diagram shows that 30% of the dealers opinion regarding the problem that face in the
delivery and purchase of Pavizham Healthier Diet product is lack of timing. 25% of the dealers
opinion regarding the problem that face in the delivery and purchase of Pavizham Healthier Diet
15%
30%
25%
20%
10%
Bad Packaging
Lack of timing
Insufficient delivery
No Problem
Others
Particular No of Respondents Percentage
Bad Packaging 15 15
Lack of timing 30 30
Insufficient delivery 25 25
No Problem 20 20
Others 10 10
Total 100 100
39
product is insufficient delivery. 15% of the dealers opinion regarding the problem that face in the
delivery and purchase of Pavizham Healthier Diet product is bad packaging. 20% of the dealers
have no problem regarding the problem that face in the delivery and purchase of Pavizham
Healthier Diet product and 8% of the dealers opinion regarding the problem that face in the
delivery and purchase of Pavizham Healthier Diet product is other factors.
40
Table 4.10 Respondents opinion regarding the factors that expect from Pavizham
Healther Diet
Chart 4.10 Respondents opinion regarding the factors that expect from Pavizham
Healther Diet
Interpretation
The above diagram shows that 45% of the dealers expect promotional scheme. 25% of the
dealers is service. 15% of the dealers expect follow-up scheme. 10% of the dealers expect credit
facility and 5% of the dealers is expect other factors.
45%
15%
25%
10%
5%
Promotional Scheme
Follow-Up Scheme
Service
Credit Facility
Others
Particular No of Respondents Percentage
Promotional Scheme 45 45
Follow-Up Scheme 15 15
Service 25 25
Credit Facility 10 10
Others 5 5
Total 100 100
41
Table 4.11 Respondents opinion regarding the satisfaction of life period of Paviham
products
Chart 4.11 Respondents opinion regarding the satisfaction with the life period of Paviham
products
Interpretation
The above diagram shows that 50% of the dealers is highly satisfied with life period. 20% of the
dealers is satisfied with life period. 15% of the dealers is neutral with life period. 10% of the
dealers is dissatisfied with life period and 5% of the dealers is highly dissatisfied with life period.
50%
20%
15%
10%
5%
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Particular No of Respondents Percentage
Highly Satisfied 50 50
Satisfied 20 20
Neutral 15 15
Dissatisfied 10 10
Highly Dissatisfied 5 5
Total 100 100
42
Table 4.12 Respondent opinion regarding the scheme of taking back the unsold products
Chart 4.12 Respondents opinion regarding the scheme of taking back the unsold products
Interpretation
The above diagram shows that 40% of the dealers opinion regarding the scheme of taking back
the unsold products is excellent. 30% of the dealers opinion regarding the scheme of taking back
the unsold products is good. 15% of the dealers opinion regarding the scheme of taking back the
unsold products is average. 10% of the dealers opinion regarding the scheme of taking back the
unsold products is poor. 10% of the dealers opinion regarding the scheme of taking back the
unsold products is very poor.
40%
30%
15%
10%
5%
Excellent
Good
Average
Poor
Very Poor
Particular No of Respondents Percentage
Excellent 40 40
Good 30 30
Average 15 15
Poor 10 10
Very Poor 5 5
Total 100 100
43
Table 4.13 Respondents opinion regarding the visits of company executives are very helpful
Chart 4.13 Respondents opinion regarding the visits of company executives are very
helpful
Interpretation
The above diagram shows that 60% of the dealers is highly satisfied with visits of company
executives. 23% of the dealers is satisfied with visits of company executives. 8% of the dealers is
neutral with visits of company executives. 5% of the dealers is dissatisfied with visits of
company executives and 4% of the dealers is disatisfied with visits of company executives.
60%23%
8%
5%4%
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Particular No of Respondents Percentage
Highly Satisfied 60 60
Satisfied 23 23
Neutral 8 8
Dissatisfied 5 5
Highly Dissatisfied 4 4
Total 100 100
44
Table No 4.14 Respondents opinion regarding the satisfaction of damage policy of the
company
Chart 4.14 Respondents opinion regarding the satisfaction of damage policy of the
company
Interpretation
The above diagram shows that 50% of the dealers is highly satisfied with damage policy of the
company. 30% of the dealers is satisfied with damage policy of the company. 10% of the dealers
is neutral with damage policy of the company. 5% of the dealers is dissatisfied with damage
policy of the company and 5% of the dealers is highly dissatisfied with damage policy of the
company.
50%
30%
10%
5%5%
Highly Satisfied
Satisfied
Neutral
Dissatisfied
Highly Dissatisfied
Particular No of Respondents Percentage
Highly Satisfied 50 50
Satisfied 30 30
Neutral 10 10
Dissatisfied 5 5
Highly Dissatisfied 5 5
Total 100 100
45
Table 4.15 Respondents opinion regarding the sale of Pavizham Healthier Diet
Chart 4.15 Respondents opinion regarding the sale of Pavizham Healthier Diet
Interpretation
The above diagram shows that 40% of the dealers opinion that sale is excellent. 35% of the
dealers opinion that sale is good. 15% of the dealers opinion that sale is average. 5% of the
dealers opinion that sale is poor. 5% of the dealers opinion that sale is poor.
40%
35%
15%
5%5%
Excellent
Good
Average
Poor
Very Poor
Particular No of Respondents Percentage
Excellent 40 40
Good 35 35
Average 15 15
Poor 5 5
Very Poor 5 5
Total 100 100
46
Table 4.16 Respondents opinion regarding the complaints about Pavizham Healthier Diet
products
Chart 4.16 Respondents opinion regarding the complaints about Pavizham Healthier Diet
products
Interpretation
The above diagram shows that 70% of the dealers do not have any complaints about the
Pavizham Healthier Diet products. 30% of the dealers have complaints about the Pavizham
Healthier Diet products.
20%
80%
Yes
No
Particular No of Respondents Percentage
Yes 20 20
No 80 80
Total 100 100
47
Table 4.17 Respondents opinion regarding the reason for complaints about Pavizham
Healthier Diet products
Chart 4.17 Respondents opinion regarding the reason for complaints about Pavizham
Healthier Diet products
Interpretation
The above diagram shows that 40% of the dealers have complaints about the Pavizham Healthier
Diet products due to delivery of goods. 25% of the dealers have complaints about the Pavizham
40%
10%15%
25%
10%
Delivery of Goods
Quality of Products
Pricing
Service
Others
Particular No of Respondents Percentage
Delivery of Goods 8 40
Quality of Products 2 10
Pricing 3 15
Service 5 25
Others 2 10
Total 20 100
48
Healthier Diet products due to service. 15% of the dealers have complaints about the Pavizham
Healthier Diet products due to pricing. 10% of the dealers have complaints about the Pavizham
Healthier Diet products due to quality and 10% of the dealers have complaints about the
Pavizham Healthier Diet products due to other factors.
49
5.1 FINDINGS
• Majority of the dealers had more than 4 years experience with Pavizham Healthier Diet
and they are active sellers of the products of the company
• Pavizham Healthier Diet have got an array of well established dealers. The dealers have a
good track record of their business.
• The dealers are satisfied with the quality of the products which are offered by Pavizham
Healthier Diet.
• The main factors which drive them to deal with Pavizham Healthier Diet, it came out that
most of the dealers prefer on product quality to be the first factor other than the product
demand.
• Most of the dealer’s payment only with cash.
• Most of the dealers are satisfied with the promotional activities given by the company.
• The retailers have very less complaints regarding the Pavizham Healthier Diet
• The sales of the product have increased and the dealers are very much satisfied to deal
with Pavizham Healthier Diet.
50
5.2 SUGGESTIONS
• The company should try to reach their products to the interior parts of kerala.
• The dissatisfied dealers can be changed to satisfied dealers by conducting meeting
between the dealers and sales personnel and sort cut the reasons for dissatisfaction and
take apt steps according to it.
• The company should increase the number of dealers and it should appoint dealers with
good potential to sell so as to increase the market share.
• The company is to create awareness among the people and to motivate the dealers and
create a effective network.
• The company should offer more promotional materials and advertising such as name
boards, papers, wall paintings that are creative as well as effective and it should have a
proper advertising strategy to satisfy the dealers.
• The dealers are need to regular visit of the sales personnel’s it may be one in two or
three weeks. This is also help to monitor the local market.
• Increasing the percentage of discounts and gifts offer will satisfy the dealers to a great
extent.
• The company has to create a brand name which easily gets the existence in the
customers mind. For that the company has to give big media ads, also can appoint any
celebrity as a brand ambassador.
51
5.3 CONCLUSION
Competing is the global brand and it is difficult one. From the survival point of view Pavizham
Healthier Diet, should enter into all aspects of marketing activities to improve the product life in
the future market. The company has mostly achieved in satisfying its dealers and as well as its
customers. It is evident from this study and Pavizham Healthier Diet is advised to maintain its
quality on its products so as to retain this stage forever. The study has been successful in
knowing the dealers’ satisfaction with reference to Pavizham Healthier Diet
In order to successfully design long term policies aimed to foster manufacturers-dealers
relationships, it has been demonstrated that manufacturers must give up decisions exclusively
oriented to generate immediate benefits. In fact such policies may disclose future company
failure.
The study is not entirely devoid of limitations. The sampling methodology deviates substantially
from a simple random sampling based methodology and therefore reduces the generalisability of
the study. Future studies could look at different contexts as well as inclusion of other moderators.
52
BOOKS
• Dileep kumar M.C, Vineeth K.M, “Marketing Research”, New Delhi, Kalyani
Publishers, 2006.
• Kothari C.R, “Research methodology and Techniques”, New International private
limited, 1985.
• Potti L.R “Qualitative Technique”, Thiruvanathapuram, Yamuna Publications, 2002.
• Guptha S.P, “Business Statistics”, Thiruvanathapuram, Yamuna Publications, 2005.
• Sharma D.D “Marketing Research”, New Delhi, Chand Publication,1994.
WEDSITE
• www.pavizhamrice.com
• www.scribd .com
• www.slideshare.com
• www.wikipedia.com
• www.about-fmcg.com
53
QUESTIONNAIRE
Dear Respondent,
I am a final year MBA student of Viswajyothi School of Management Studies, Vazhakulam”. In
partial fulfilment of my MBA at Mahathma Gandhi University I am conducting “A study on
Dealer Satisfaction with reference to Pavizham Healther Diet”. I am looking forward to your
valuable and true response for the study. All information that you provide through your
participation in this study will be kept confidential.
Thank you in advance for your co-operation.
Name of the dealer:
Phone No:
Address:
Please mark tick mark against your choice
1. How long you are dealing with Pavizham Healthier Diet?
Less than 1 year 1-4 years 4-7 years 7-10 years Above 10 years
2. Which factors influenced you to take the dealership of Pavizham Healthier Diet?
Attractive profit margin Brand image Product Quality Product demand
Others
3. How do you feel about quality of Pavizham Healthier Diet?
Excellent Good Average Poor Very Poor
4. Are you satisfied with the product line/variety that Pavizham Healthier Diet provides?
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
54
5. What is your opinion about pricing of Pavizham products?
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
6. What is the mode of payment?
Cash Cheque Credit Demand Draft Installment 7
7. What type of promotional activity do you prefer with?
Discount coupon Gift prize Offers Price reduction Credit sales
8. Are you satisfied with the promotional activities given by Pavizham Healthier Diet?
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
9. What type of problem do you face in the delivery and purchase of Pavizham Healthier Diet
product?
Bad Packing Lack of timing Insufficient delivery No problem Others
10. What are the factors that you expect from Pavizham Healther Diet?
Promotional Sales Follow-up Scheme Service Credit Facility Others
11. Are you satisfied with the life period of Paviham products?
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
12. What is your opinion about the scheme of taking back the unsold products?
Excellent Good Average Poor Very Poor
13. Whether the visits of company executives are very helpful?
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
14. Are you satisfied with the damage policy of the company?
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied
55
15. What is your opinion about the sale of Pavizham Healthier Diet?
Excellent Good Average Poor Very poor
16. Do you have any complaints about Pavizham Healthier Diet?
Yes No
If Yes, specify the reason,
Delivery of goods Quality of products Pricing Service Others