physical distribution in marketing

8/10/2019 Physical distribution in Marketing

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Marketing Theory & Practice (561)

Assignment 2

(Physical Distribution)

Name:Asifa Nazir

Roll Number: 583956

Submitted to:Mr. Tariq Asmat

Allama Iqbal Open University Islamabad

(Department of Business Administration)


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Acknowledgment

First of all, I am thankful of Almighty Allah whose grace alone brings success andaccomplishment.

I am very thankful to Miss Asma, head of the department (HRM), Packages Ltd and Mr.

Ahsan Feroz, head of CPD. She has been very cooperative throughout my assignment.

I am thankful to my tutor Mr. Tariq Asmat and Brig. (R) M. Zubair who always

encouraged me and gave me confidence to go and work with responsibility.

Asifa Nazir

Roll No. 583956


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Introduction

As packages names indicates that it has packaging business. It is only organization inPakistan who has such large scale packaging business. Packages established in 1957

as a joint venture between Ali groups of Pakistan and Akerland & Rausing of Sweden

to convert paper and board into packing for consumer industry.

Over the year, the company continued to enhance its failure to meet the growing

demand of packing products, additional capital raised from sponsor international

finance corporation and from the public in 1965.

Packages commissioned its own paper mill in 1968 having production capacity of

24,000 tones of paper and paper board on waste paper and agriculture by products

i.e. wheat straw and river grass. With growing demand the capacity was increased

periodically and 1996 reached 6500 tones per year.

Since 1982 packages limited has venture with tetra pack international. Tetra Paklimited to manufacture paper of liquid food of packing and to market Tetra packing

equipment. Packages limited own 62% of this company. In 1999-2000 packages has

successfully completed the expansion of the flexile packaging by installation of new

rotofiavure printing machine. Printing and cutting machine are in production since

December 1999.

Packages has no big competitors in market.


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Review of Literature

Logistic Principles:

The major logistic principles include: information system, Material handling andpackaging, storage facilities and transportation.

Information System:

An information system is needed to assure that proper inventory levels are

maintained at all stages of the system. This includes a communications and order

processing system to facilitate integration of all components and provide facilities for

controlling the entire distribution system.

Material Handling and Packaging:

These components involve considerable capital and also directly affect all other

element of the system.

Storage Facilities:

Particular attention should be paid to the design of storage facilities (both internal

and external) in order to ensure proper handling and to reduce the cost of moving goods

into and out of the inventory holding points.

Transportation:

Principle consideration for judgments in relation to this component is speed,

reliability, performance and cost.


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Strategies of Physical Distribution:

There are two major strategies of Physical distribution i.e. Pull Strategyand Push

Strategywhich are illustrated as follows.

Push Strategy:

In Push Strategy the flow of demand is from producer towards

consumer.

Pull Strategy:

In Pull Strategy the flow of demand is backwards from push strategy.


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White Table Napkins

Colored Table Napkins

o

Pink

o

Blue

o

Yellowo Peach

Paper Towel

R.P Pocket Pack

o Pink

o White

Fresh Wipes 10S CTN-

o

Pink

o

Blue

o

Jar Packing

Multicolor facial tissue

2Ply UN PRTD Embossed T.N

o Pink

o Blue

2 Ply PRTD T.N WHITE STD

Party Pack 500 sheets

R.P Toilet Roll

o

Pinko

Blue

o

White

o

Peach

R.P Twin Toilet Roll

Double Hourse Toilet Rolls

Feminex

o Stickon Large

o

Stickon Small

o

Loops Large

o

Loops Small

Full Paper Plates

Medium Paper Plates

Snack Paper Plates


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Snack Bowls

Paper Cups

o

80 CC

o

125 CC

o

160 CCo 200 CC FLEXO

o 200 CC OFFSET

o 200 CC HOT

o 250 CC

o 300 CC

Un-Wrapped Toilet Rolls

Jumbo Towel Rolls

Jumbo Towel Dispenser

Institutional Pack

Rose Petal Coaster

Un-Printed Gum Tape

o 25 mm x 120 m

o 50 mm x 120 m

o 65 mm x 120 m

USCP (Utility Store)

Multifacial Tissues Luxury Size

o

Pink

o

Blue

o Yellow

o White

o Peach

Supreme Size

o Pink

o

Blue

o Yellow

o White

o Peach

Rose Petal Toilet Roll

o

Pink


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o Blue

o Yellow

o White

o Peach

White Table Napkin Perfume

o 111

o 222

o 333

Colored Table Napkin

o Pink

o Blue

o Yellow

o

White

o Peach

Utility Pack

Hotels to Serve:

1 PLY C.N for Lahore Gymkhana

1 PLY C.N for Macburger

125 CC STD CUPS OFFSET

160 CC STD FLEXO FOR SCOOP 160 CC STD FLEXO

2 PLY C.N for 1 PATATO 2 PATATO

2 PLY C.N for AVARI

2 PLY C.N for COPPER KETTLE LHR

2 PLY C.N for DAEWOO BREAD & BUTTER

2 PLY C.N for HOLIDAY INN LHR

2 PLY C.N for IGLOO ICECREAM

2 PLY C.N for KFC LHR/KHI

2 PLY C.N for P.C

2 PLY C.N for SALT & PEPPER

2 PLY C.N for SERENE HOTEL

2 PLY C.N for WHITE STD

2 PLY C.N for BELL PEPPER

2 PLY C.N for DUNKIN DONUTS LHR/KHI


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2 PLY C.N for AERO ASIA

2 PLY C.N for 4 SEASONS

2 PLY C.N for BASANT

2 PLY C.N for BUNDO KHAN

2 PLY C.N for CATERERS 2 PLY C.N for FREDDYS CAF

2 PLY C.N for MARRIOT

2 PLY C.N for McDONALDS

2 PLY C.N for PIZZA HUT

2 PLY C.N for VILLAGE

2 PLY C.N for SERENA HOTEL WITH PRTG S

2 PLY C.N for SUN FORT

2 PLY UN-PRTD COFFEE NAPKINS 2 PLY UN-PRTD EMB T.N WIHTE (SPL)

2 PLY UN-PRTD T.N PINK

2 PLY UN-PRTD T.N

200 CC STD CUPS HOT


200 CC COLD CUP OP FOR MCDONANLD LHR/KHI

200 CC COLD CUP OP PUNJAB ICECREAM

200 CC STD CUP LUX PINK/GREEN W/O LOGO


4 PLY CST FOR SERENA FAISALABAD

80CC P/CUP ALPINO

80 CC P/CUP SMILE

80 CC P/CUP DARK BLUE GROUND

CCL SPL PR WET TISSUE FOR LEVOCIL

DOCTOR TISSUE ROLL

INST. PACK MAROON COL FOR AKH

INSITUTIONAL PACK GREY MCDONALDS CHICK ROLL WRAPPERS

MCDONALDS PINEAPPLE PIE CARTONS

OFFSET -12 OZ 30CC KFC PEPSI CUPS

OFFSET -16 OZ 50CC KFC PEPSI CUPS W. 16 OZ.

PRTD PLATES FOR SAVOUR FOOD RED,GREEN


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PRTD. PLATES FOR SAVOUR FOOD YELLLOW

SPL PR WER FOR BAR-B-Q

STDWET TISSUE 10S CTN

STDWET TISSUE 10S CGN

STDWET TISSUE JAR PACKING UN-WRPD T.R FOR INST.

UN-WRPD FOR PC

PAPER TOWEL CAA

PIA TOILET ROLL WRAPPED WITH PIA LOGO

SUPREME FACIAL CAA

UN-WRAP FOR CAA

Tulip:

Tulip 100o Pink

o Blue

o White

o Peach

Tulip Multicolor

Tulip 100 viva perfumed

Tulip pocket pack pink

Tulip single toilet rolls

Tulip twin toilet rollo Pink

o Blue

o White

o Peach

Tulip Facial 100s

o Pink

o Blue

o White

o Peach


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Practical Study of the Organization

Packages Ltd. have a big distribution system. After study of the market activity,

where customers, potential customers are located what they buy and what

volumes they buy. The answer will differ because of local desires and facilities

and beliefs.

Packages have their own distribution network. They have 116 distributions all

over the Pakistan.

Packages Ltd. Distribution Strategy:

Packages have their distribution strategy. Distribution strategy is conventional one

i.e. Manufacture, distributor, wholesaler and retailer. Distributors supply directly to

the retailer. Company prefer distributor to the retailer. Percentage of sales through

wholesaler varies from town to town and ranger to 25% to 40%. The primary focusof this strategy is:

Maximize brand availability at all target retail and wholesale outlets.

Regular order booking and market visits by distributors and field supervisors.

Producer

Distributor

Retailer

Consumer


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Complete distribution coverage at Non-traditional sales channel- these

includes Hospital, Pharmacies, Mother care shops, cosmetic shops, ad

exclusive ladies stores and slimming parlors.

Separate distribution vans for different products.

Information System:

CPD proper maintained their inventory level. This includes a communication and

order processing system. The information system controls the distribution system.

The information system control operations such as production, shipping, stock

ordering and cost accounting information.

Handling & Packaging Material:

The handling and packaging of materials effect the physical distribution. CPD gives

the proper protection easily handling the boarding and transport with available

facilities.

Storage:

For proper integration into the physical distribution system CPD has storage

facilities and it perform functions efficiently in the processing activities of

warehousing.

Transportation:

The choice of transportation carries affects the pricing of products, delivery

performance and condition of the good when they arrive, all of which effect

customer satisfaction.

Packages transport their products by trucks. The tuck brought a good mobility to

goods.


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SWOT Analysis of Packages Ltd.

Strengths:

The CPD producing all types of paper and board packing.

They are having the best positive image and reputation for quality packing in

Pakistan.

Own research, development and control department.

They are having their own generation plant.

Distribution Channels are strong.

Transportation system for easy handling of products.

Strong Advertisement of products.

Proper protection and storage of products.

Have own warehouses.

Weakness:

They cannot take small orders. In small towns they dont have a proper distribution channel. Late decision making.

Excessive Weight per unit.

Opportunities:

Market of packaging industry is growing day by day.

Strong advertisements attract the customers.

Distribution Channels are strong.

Threats:

High costs of products.

Tough competition will be faced in near future.


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physical distribution in marketing

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