vrl chapter 4

7/29/2019 VRL Chapter 4

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A study on Measurement of Brand Awareness & Perception of VRL Brand

MP Birla Institute of Management MBA Page 1

Chapter4.1

Industry profile

Logistics is the management of the flow of goods, information and other resources, including

energy and people, between the point of origin and the point of consumption in order to meet the

requirements of consumers. Logistics involves the integration of information, transportation,

inventory, warehousing, material-handling, and packaging, and occasionally security. The term

logistics originates from the ancient Greek (logos-ratio, word, calculation, reason,

speech, and oration).

Logistics is considered to have originated in the militarys need to supply themselves with arms,

ammunition and rations as they moved from their base to a forward position. In ancient Greek,

Roman and Byzantine empires, there were military officers with the title Logistikas who were

responsible for financial and supply distribution matters. Logistics management is that part of

the supply chain which plans, implements and controls the efficient, effective forward and

reverse flow and storage of goods, services and related information between the point of origin

and the point of consumption in order to meet customer requirements.

Logistics as a business concept evolved only in the 1950s. This was mainly due to the increasing

complexity of supplying ones business with materials and shipping out products in an

increasingly globalized supply chain. This can be defined as having the right item in the right

quantity at the right time at the right place for the right price in the right condition to the right

customer. The goal of logistics work is to manage the fruition of project life cycles, supply

chains and resultant efficiencies.

In business, logistics may have either internal focus (inbound logistics), or external focus

(outbound logistics) covering the flow and storage of materials from point of origin to point of

consumption. The main function of a qualified logistician includes inventory management,

purchasing, transportation, warehousing, consultation and the organizing and planning of these

activities. Logisticians combine a professional knowledge of each of these functions so that

there is a coordination of resources in an organization.


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There are two fundamentally different forms of logistics. One optimizes a steady flow of

material through a network of transport links and storage nodes. The other coordinates a

sequence of resources to carry out some project. Transport or transportation is the movement of

people and goods from one location to another. Transport is performed by various modes, such

as air, rail, road, water, cable, pipeline and space. The field can be divided into infrastructure,

vehicles, and operations.

Infrastructure consists of the fixed installations necessary for transport, and may be roads,

railways, airways, waterways, canals and pipelines, and terminals such as airports, railway

stations, bus stations, warehouses, trucking terminals, refueling depots (including fueling docks

and fuel stations), and seaports. Vehicles traveling on these networks include vehicles ofappropriate types such as automobiles, bicycles, buses, trains, trucks, people, helicopters, and

aircraft. Operations deal with the way the vehicles are operated. In the transport industry,

operations and ownership of infrastructure can be either public or private, depending on the

country and mode.

Modes of transportation

A brier introduction to the various mode of transportation is as follows;

Rail: Used for delivery of a wide range of goods including coal, iron ore, cement, food grains,

fertilizers, steel, petroleum products and other heavy goods.

Road: Used by suppliers to deliver goods in a cost effective manner. Many transport

companies have expertise for fast delivery, packaging etc. for making scheduled delivery.

Air: Used mostly for delivery of high value and low volume goods from distant suppliers,

usually not connected by any other mode of transportation. It is also suitable for emergent item

to be imported for some specific requirement.

Water: Used by firms for delivery of goods from distant suppliers, mostly conducted in

containers of varied size. This mode is ideal for transportation of heavy and bulky goods and

suitable for products with long lead times.

Pipe line: Used by oil sector companies for mass movement of Petroleum products including

gases. Due to quite low operating cost it is one of the preferred modes of transportation.


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Industry classification

Market segmentation

Transportation modes

Haulage

Operators

Operations

Transaction

Healthy economic growth, rise in the production of key commodities, infrastructure investments

and growth in import-export have led to growth in freight movement in the past 5 years, with

roadways dominating freight movement on account of higher flexibility, reach and customer

preference. Domestic freight transportation service (DFTS) refers to transportation of goods

within India; Here the mode of transportation also mainly refers to roadways and railways, as

they carry nearly 90 % of the cargo in volume terms. Historically, railways has remained a

dominant mode of transport in India, over the past few decades, roadways has gained a

significant share in the overall traffic movement, while railways has lost its market share.

The reason that have helped roadways gain market share are as follows:

Greater coverage as compared to any other mode of transport. Higher flexibility in terms of door-to-door delivery, giving it an edge despite higher effective

cost.

Transportation

Service Industry

Passenger Freight

Railways Roadways Airways Coastal Pipeline

Last mile=50-=350-=800 kms

Small fleet

operators

(1-5 trucks)

Medium fleet

operators (

5-20 trucks)

Large fleet

operators

(>20 trucks)

Full load Part/parcel load

Spot Contract


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Lower risk of handling loss, due to lesser loading and unloading of goods.

Over the past few decades, the share of road transport in the total freight movement has also

been increasing, supported by strong economic growth, inherent advantages of roadways and

initiatives in infrastructure development. The structure of the road freight transport industry in

India has always been and continues to be highly fragmented. It comprises many players who

provide transportation services, intermediaries transport contractors/booking agents who can

provide haulage services, brokers who fetch equipment and drivers for a commission, and the

consignors/users who constitute the ultimate demand for the services.

Passenger transport may be public, where operators provide scheduled services, or private.Freight transport has become focused on containerization, although bulk transport is used for

large volumes of durable items. Transport operator is the one who provides transportation in the

entire transportation services value chain. These operators can be broadly classified into single

truck of small fleet operators (those who own up to 1-5 trucks) and fleet operators (those who

own more than 5 trucks). Fleet operators can be further segmented into medium fleet operators

who have a fleet of 6-20 trucks and large fleet operators who own more than 20 trucks.

Cargo service

Cargo (or freight) refers to goods or produce transported, generally for commercial gain, by

ship, aircraft, train, van or truck. In modern times, containers are used in most intermodal long-

haul cargo transport. There are many firms which transport all types of cargo, ranging from

letters to houses to cargo containers. These firms like Parcel force or FedEx which deliver fast

and sometimes same day delivery services. A good example of road cargo is supermarket stock,

as these require deliveries every day to keep the shelves stacked with goods for sale. Retailers of

all kinds rely upon delivery trucks, be they full size semi trucks or smaller delivery vans.

Freight is a term used to classify the transportation of cargo and is typically a commercial

process. Items are usually organized into various shipment categories before they are

transported. This is dependent on several factors:

The type of item being carried, i.e. a kettle could fit into the category household goods. How large the shipment is, both in terms of item size and quantity How long the item for delivery will be in transit.


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Shipments are typically categorized as household goods, express, parcel and freight shipments.

Furniture, art, or similar items are usually classified as household goods (HHG). Very small

business or personal items like envelopes are considered overnight express or express letter

shipments. These shipments are rarely over a few kilos/pounds, and almost always travel in the

carriers ownpackaging. Service levels are variable, depending on the shippers choice. Express

shipments almost always travel some distance by air.

Larger items like small boxes are considered parcel or ground shipments. These shipments

are rarely over 50 kg (110 Ib), with no single piece of the shipment weighing more than about 70

kg (154 Ib). Parcel shipments are always boxed sometimes in the shippers packaging and

sometimes in carrier-provided packaging. Service levels are again variable; but most ground

shipments will move about 800 to 1,100 kilometers (497 to 684) per day, going coast to coast in

about four days depending on origin. Parcel shipments rarely travel by air, and typically move

via road and rail. Parcels represent the majority of business-to-consumer (B2C) shipments.

Courier service

A courier is a person or company employed to deliver message, packages and mail. Couriers are

distinguished from ordinary mail services by features such as speed, security, tracking,signature, specialization and individualization of services, and committed delivery times, which

are optional for most everyday mail services. As a premium service, couriers are usually more

expensive than usual mail services. Different courier services operate on all scales, from within

specific towns of cities, to regional, national and global services. In cities, there are often bicycle

couriers or motorcycle couriers but for consignments requiring delivery over greater distance

networks, this may often include trucks, railways and aircraft.

Many companies who operate under a Just-In-Time of JIT inventory method often utilize on-

board couriers. On-board couriers are individuals who can travel at a moments notice anywhere

in the world, usually via commercial airlines. Over time, demand for a new type of

representative courier has emerged. With the increase in fuel prices and productivity goals

monitored closely by companies, this new type of all-in-one courier has developed to take care

of business. Workers in companies have more work and less time to be out of the office.

Operating largely using independent contractors that have gone through a screening process and

background checks have found a niche in the courier industry. Same day couriers deliver in less


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than 24 hours and are an integral part of any modern economy. The business model for the

courier industry is particularly dependent on independent contractors. It is estimated that 50-

65% of Indian courier companies use independent contractors to make deliveries in addition to

their own dedicated employee resources.

Courier firms specializing in same-day delivery provide an invaluable service because the big

five (Aramex, DHL, FedEx, TNT N.V., and UPS) in the delivery business simply do not

provide same-day delivery services uniquely designed to meet specific individual customer

needs. Expedited delivery firms also prevent the big five from having a complete monopoly on

deliveries that must be completed in a short period of time. This competition, both among

couriers and with the big five, has greatly increased the quality and professionalism of theindustry, while also ensuring reasonable rates for customers.

Passenger transport

Passenger transport, or travel, is divided into public and private transport. Public is a scheduled

service on fixed routes; while private are vehicles that provide ad hoc services at the riders

desire. Travel may be part of daily commuting, for business, leisure or migration. Short-haul

transport is dominated by the automobile and mass transit. The latter consists of buses in rural

and small cities, supplemented with commuter rail, trams and rapid transit in larger cities. Long-

haul transport involves the use of the automobiles, trains, coaches and aircraft, the last of which

have become predominantly used for the longest, including intercontinental, travel.

Intermodal passenger transport is where a journey is performed through the use of several

modes of transport since all human transport normally starts and ends with walking. Public

transport may also involve the intermediate change of vehicle, within or across modes, at a

transport hub, such as a bus or railway station. Taxis and Buses can be found on both ends of

Public Transport spectrum, whereas Buses remain the cheaper mode of transport but are not

necessarily flexible, and Taxis being very flexible but more expensive. International travel may

be restricted for some individuals due to legislation and visa requirements.

Passenger transport services are provided both by the State Road Transport Undertakings

(SRTUs) and private operators. Following liberalization, with the entry of private operators to

meet the incremental passenger traffic demand the share of SRTUs has declined. Taking intoaccount the traffic carried by other commercial vehicles, the share of the private sector in total


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passenger traffic is estimated at about 85 %. At present there is 53 State Road Transport

Undertakings (SRTUs) having a total number of 1.13 Lakh buses of varying fleet size. The

reporting SRTUs carry more than 6 Crore passengers per day and cover about 449 billion

passenger kms. As at the end of fiscal year 2006-07, the country had more than 73 million

registered automobiles of which two wheelers and cars constituted over 81 per cent of the

vehicles in the country. The share of buses in total registered vehicles has declined even though

they accounted for about 50% of all journeys performed by road.

Air charting

In the context of mass tourism, charter flights have acquired the more specific meaning of a

flight whose sole function is to transport holiday makers to tourist destinations. Such charter

flights are contrasted with scheduled flights, but they do in fact operate to regular, published

schedules. However, tickets are not sold directly by the charter airline to the passengers, but by

holiday companies who have chartered the flight (sometimes in a consortium with other

companies). Many charter flights are sold as part of a package holiday in which the price paid

includes flights, accommodation and other services. At one time this was a legal requirement (or

one enforced by the airlines cartel), but this is no longer the case, and so-called flight-only

packages can be bought by those who merely want to travel to the destination. Such packages

are frequently cheaper than regular schedule airline fares.

Many airlines operating regular scheduled services (i.e. for which tickets are sold directly to

passengers) have set up charter divisions, though these have not always proved competitive with

the specialist charter companies. In addition, some cargo airlines occasionally carry a few

charter passengers on their jets. Conversely, some charter airlines have branched out into

scheduled services when their charter operations have uncovered a need or a market niche. The

Civil Aviation sector has undergone dramatic expansion during the Tenth Five Year Plan period.

The rapid growth of the economy especially during the last six years has been accompanied by a

sharp increase in the volume of air traffic. The number of domestic and international air

passengers (combined) has almost doubled between 2005 and 2008.

As of now, there are 14 scheduled airline operators having 334 aircraft. During 2008, the

scheduled operators have been given permission for import of 72 aircraft. The Ministry of Civil

Aviation has given in-principle approval for import of 496 aircraft and, in the next five years,


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more than 250 aircraft are likely to be acquired by the scheduled operators. There are also 65

non-scheduled airlines operators who have 201 aircraft in their inventory. The explosive growth

in air traffic has made it imperative to rapidly expand the air infrastructure to ensure safe and

efficient handling of air traffic.

Wind power generation

Wind power is the conversion of wind energy into a useful form of energy, such as electricity,

using wind turbines. At the end of 2008, worldwide nameplate capacity of wind-powered

generators was 121.2 Gig watts (GW). In 2008, wind power produced about 1.5% of worldwide

electricity usage and is growing rapidly. As of May 2009, eighty countries around the world are

using wind power on a commercial basis. Large-scale wind farms are connected to the electric

power transmission network; smaller facilities are used to provide electricity to isolated

locations. Utility companies increasingly buy back surplus electricity produced by small

domestic turbines. Wind energy as a power source is attractive as an alternative to fossil fuels,

because it is plentiful, renewable, widely distributed, cleans, and produces no greenhouse gas

emissions. In a wind farm, individual turbines are interconnected with a medium voltage

(usually 34.5kV) power collection system and communications network.

Small-scale wind power is the name given to wind generation systems with the capacity to

produce up to 50 kW electrical powers. Isolated communities, that may otherwise rely on diesel

generators may use wind turbines to displace diesel fuel consumption. Wind turbines have been

used for household electricity generation in conjunction with battery storage over many decades

in remote areas. Grid-connected wind turbines may use grid energy storage, displacing

purchased energy with local production when available. Off-grid system users can either adapt

to intermittent power or use batteries, photovoltaic or diesel systems to supplement the wind

turbine.

There are now many thousands of wind turbines operating, with a total nameplate capacity of

121,188 MWp. World wind generation capacity more than quadrupled between 2000 and 2006,

doubling about every three years. The share of the top five countries in terms of new

installations fell from 71% in 2004 to 62% in 2006, but climbed to 73% by 2008 as those

countries-the United States, Germany, Spain, China, and India-have seen substantial capacity

growth in the past two years.


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By 2010, the World Wind Energy Association expects 160GW of capacity to be installed

worldwide, up from 73.9GW at the end of 2006, implying an anticipated net growth rate of more

than 21% per year. Denmark generates nearly one-fifth of its electricity with wind turbines-the

highest percentage of any country-and is ninth in the world in total wind power generation. India

ranks 5th in the world with a total wind power capacity of 9,587 MW in 2008, or 3% of all

electricity produced in India. Muppandal village in Tamil Nadu state, India, has several wind

turbine farms in its vicinity, and is one of the major wind energy harnessing centres in India led

by majors like Suzlon, Vestas, and Micon among others.

Energy requirement projections

The Expert Committee on Integrated Energy Policy constituted by the Planning Commission has

in its report (IEPR) estimated the requirement of primary energy supply to increase 4-5 times the

2007-08 level for an economy growing at around 8-9 percent annum over the next 25 years.


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Chapter-4.2

Company profile

VRL has achieved excellent growth during the last 32 years of service and they are really proud

of their achievements. The Company really commends the sincere efforts made by their staffs

and agents to grow to such an extent. The Companys immediate aim is to double their present

business through next three years to achieve this they have to work hard. At a time when their

margin of profit is being eroded on account of steep hike in the diesel price, increase in the

establishment cost and in fact survival in the industry has become crucial, even then the

management is doing its best to create atmosphere conducive for the growth by extending

excellent facilities. Honest and dedicated service coupled with hard work alone will help VRL to

reach their goal of doubling the business within a span of three years. With this VRL extends

better quality service to their customers who are the backbone of their industry.

VRL Logistics Ltd

A leading ISO 9001:2000 Certified Transport Company in the country with diversified activities

into Logistics, Courier, Express Cargo, Travels, Mineral Plant, Educational Institute and Wind

Energy with an extensive Network of Branches and a fleet of over 3000 vehicles. VRL was

founded in 1976 by Mr. Vijay Sankeshwar in Hubli, a small town in North Karnataka with a

single lorry and a vision that was way ahead of its time. Starting with local transportation

between Hubli and Gadag, VRL soon expanded its service to Bangalore, Hubli, Belgaum and

Gadag. From this humble beginning VRL has grown into a nationally renowned logistics and

transport company which is currently the largest fleet owner in India with a fleet of over 2800

trucks, light commercial vehicles and over 250 buses. Over the years VRL has devoted itself to

providing a safe and reliable delivery network in the field of parcel services. It has now

expanded its operations into Courier Services and Express Cargo to meet the growing demand

for quicker and speedier deliveries of parcels. Today VRL handles over 6000 MT of parcels

every day adding up to a staggering 219,000,000 MT of cargo per annum.

Values of the company

Punctuality Integrity


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Honesty Loyalty Credibility Quick and Safe Service Creativity Fairness in all Matters Pride in the Company Strict Adherence to Commitments Respect for Dignity Team-Work Quick Response

Key events and milestones

In 1976 Commencement of Transport Service (goods and passengers) through a proprietaryconcern.

In 1978 Formation of the partnership firm by the name of Vijayanand Road lines. In 1983 Partnership firm was converted into a private limited company by the name of

Vijayanand Road lines Private Limited.

In 1992 Commencement of Courier Service within the State of Karnataka. In 1996 Company acquired passenger busses and it began operating busses between

destination in Karnataka, Maharashtra and Tamil Nadu.

In 1997 the status of our Company was subsequently changed from a deemed Public LimitedCompany to a Public Limited Company.

In 2003 and in 2004 entered into LIMCA BOOK OF RECORDS as Largest single owner ofcommercial vehicles in Private Sector in India.

In 2004 Acquisition of Vijayanand Travels and Maruti Parcel Carriers, a Proprietorshipconcern and Commencement of passenger transportation.

In 2005 ISO 9001:2000 Certification for providing passengers travels service at Hubli,Bangalore, Mumbai and Belgaum.

In 2006 entered into LIMCA BOOK OF RECORDS as Largest single owner ofCommercial vehicles in Private Sector in India.

In 2006 ISO 9001:2000 Certification for providing logistics services for movement of cargo,express cargo and courier at Hubli and Bangalore.


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In 2007 the Company has installed 34 wind turbine generators with a capacity of 1250 kW(1.25MW) all the turbines are operational as of today.

In 2007 our Company entered into the Air Charter Business and purchased premier IAaircraft from Hawker Beech Craft Incorporation, USA.

The Company has awarded UDYOG RATNA by the Government of India for employingmore than 15,000 employees.

In 2009, Voice of Customers award for Excellence in Logistics in India for the best logisticsprovider in the Retail Segment, FMCG Segment.

In 2010, Efforts of the company recognized by way of several awards and recognition. In 2011, Foray into new logistics verticalsCar Carrying and Chemical Transportation.

Corporate environmental policy

To strive to be an environmental friendly company in its activities, products and services

through:

Enhancement of environmental awareness amongst companies employees, customers andsuppliers.

Continual improvement in Environmental Management System to protect companys naturalenvironment and control pollution.

Compliance with applicable environmental legislation and regulations.

Highlights of VRL logistics

Some of the important developments of our information technology division include:

Vehicle Maintenance Tracker Vehicle Traffic Application

Consignment Delivery Application Hub application Online bus ticket booking system Remote access to networked computers RFID based driver attendance module RFID based tyre tracking system Online system for inventory management


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Operations of the organization

Centralized operations

At the core of the groups transport business is its 52 acre transport cum warehouse complex in

Varur, Hibli. This unique facility has all the essential back up services under one roof. The total

built up area of complex is 25,00,000 sq.ft. with an additional 1,00,000 sq.ft. of land utilized forsheds and vehicle parking. This complex contains the head office building, trans-shipment

warehouse, work shop, canteen, drivers rest room, own petrol bunk allotted by Indian Oil

Corporation, effluent treatment plant with capacity of 1,75,000 liters, and a rainwater harvesting

plant.

Qualities in everything

Over the last three decades, VRLs activities have evolved from cargo and transport to courierservice and wind-power. This evolution would not have been possible without vision, a

VRL Logistics

Wind Power Generation Transport and Logistics Air Charter Operations

Passenger Travels

Vijayanand Travels

Good Transportation

Full Truck Load Less than Full Truck

Load (Parcel)

Courier

Express Cargo Maruti Parcel Carriers General Parcel Shiva Road Lines

Road Rail Air


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willingness to embrace change, a strong capacity for innovation and acute awareness for

customers growing requirements. In the Company flagship business VRL ranks top of the

industry. They continue to grow, in responsible ways and within the contest of the companys

core values; respect for people, valuable partnership and good corporate citizenship. The

efficiency of the VRL fleet of vehicles hinges on them all inclusive state-of-the-art workshops

cum service complex at Hubli (Karnataka). Every vehicle of the VRL fleet passes through this

master service facility so that they are at peak levels of performance, leading to better cost

efficiencies and time management.

Quality policy

ISO 9001:2000

The Company committed to provide safe and cost effective services meeting applicable statutory

and regulatory requirements. The Company must strive for the protection of environment,

service excellent and enhancement of customer satisfaction through the use of an effective

Quality Management System and Continual improvement of all their processes.

Quality objectives

Improve the standards of service Reduction in operational expenditure Reduction in accidents Prevention of Pollution Quick and Safe Service

Systematic maintenance of vehicles

The efficiency of VRL fleet of trucks hinges on their systematic preventive maintenance

measures at their all inclusive state-of-the-art garage cum service complex at Varur. Every truck

in their fleet passes through this master service facility in Hubli at least once every 2 weeks. The

vehicles are peak levels of performance, down time is kept to a minimum, leading to better cost

efficiencies and time management.


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Chapter-4.3

Product profile

The Company has number of services in the present such as:

Travels

Courier and Express Cargo

Charter Flights

Wind Power Energy which is situated in Gadag District

The Company has also idea of starting some new industries such as:

Cement Industries

Entertainment Industries

The Company had two industries in the past which were:

Hubli apparels

Paper Industry

VRL travelsThe group has also established itself as a front runner in the Travel Industry. Vijayanand

Travels, the tour operation division of VRL, is the market leader among tourist bus operators in

Karnataka and Maharashtra. It operates a huge fleet of buses on more than 200 routes connecting

50 odd destinations with over 250 luxury Buses/Coaches. The group is the Market Leader in

Private Tourist Operator Segment of Karnataka. It has pioneered the introduction of Hi-Tech

buses on routes leading to remote parts of Karnataka, separate seating arrangements for women

on board, a choice of buses from ordinary buses to super luxury A/C buses, check point tomonitor vehicle movement, two drivers in every buses to prevent driver fatigue on long routes

and enhance passenger safety and an E-Ticketing facility too.

Salient feature

230 Buses (2+1, 2+2, 2+3, Sleeper cum Seated, Sleeper, Stag and Volvo) 200 plus routes covering more than 20 destinations every day Market leader in Karnataka in private tourist operator segment


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Main area of operation: Karnataka and Maharashtra with 60 branches and wide spreadnetwork of 1,000 plus agents.

Vijayanand Travels is the first private operator which provide Hi-Tech and Volvo coaches toremote destination such as Guledgudd, Bagalkot, Bijapur and Gulbarga.

Onward and return journey E-ticket booking facility Punctuality in timing and separate seating for women Well maintained coaches with latest seating provision.Customized transport services

VRL offers its customers a range of transport services optimized to their specific requirements.

With the largest network in India, the VRL travel in indispensable. This network spans 12 states

in India and is supported by around 1000 branches, 40 hubs cum transport yards and about 5000

customers. With its own trans-shipment yard commencing operation at Gurgaon-Delhi in the

near future, VRL is now expanding its services to cover location in other north Indian States.

At the forefront of passenger transport

Vijayanand Travels, the tour operation division of VRL, is the market leader among tourist bus

operations in Karnataka and Maharashtra. It operates a fleet of 250 buses on more than 200

routes across the two western states and is supported by a network of 60 branches and 1000agents. It has pioneered the introduction of hi-tech air conditioned buses including the Volvo

B7R on routes leading to remote parts of Karnataka. Through the e-ticketing facility of company

the customers are saving their precious time as well as money. Vijayanand Travels is committed

to quality and safety. In recognition of its efforts to conform its services to the highest standards

regarding time-management, passenger conveniences, facilities safety precautions, it was

awarded the ISO 9001-2000 Certification for its Quality Management System in June 2005.

Express Cargo anywhere, anytime

Delivery on time, Zero excuses. This mantra is the driving force behind the success of VRL

Express Cargo. VRL Express Cargo provides its customers with an entire bouquet of value-

added services that comprises of road transportation, Express Cargo, Warehousing, re-

distribution & Courier Services. The Companies services now connect customers in the states of

Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Goa, Pondicherry, Western Maharashtra and

Gujarat. This network will soon stretch to the other parts of India.


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Highlights

Surface, Train & Air Cargo mode services Dedicated company owned vehicles Door pick-up and door delivery On-time delivery Online track and trace facility 24X365 days operations Dedicated & well-groomed customer care windows Extensive nation-wide network.

VRL Courier on time every time

Capitalizing on the synergy of VRL transport network that connects most of Southern and

Western India, they have now forayed into Courier Services focusing of delivering documents

and small parcels in a time bound manner.

Highlights

Strong & dedicated operations team with dedicated route vehicle On line track and trace facility Twelve regional offices, 40 plus hub points Time bound delivery with an emphasis On Time Every Time Delivery schedules ranging from 24/24/72/96 hours

Customized courier services

VRL offers its customers a range of courier services optimized to their specific requirements.

With the largest network is India, the VRL parcel service is indispensable for large number of

corporate. This network spans 12 states in India and is supported by around 1000 branches, 40

Hubs cum transport yards and more than 5000 customers. With its own trans-shipment yard

commencing operation at Gurgaon-Delhi in the near future, VRL is now expanding its services

to cover location in other North Indian state.


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VRL Aviation

In 2007, VRL Logistics Ltd paved its way into the Indian Aviation Industry. It is a gradual

progression for the company, from surface transport to air transport. The Indian aviation

industry has experienced a tremendous growth in the last two years, more so in the private

aviation sector. Keeping in mind the market demand VRL decided to enter the Air-charter

Industry and serve the VVIP, VIP & Corporate India. The aircraft will base inside Hubli Airport

in Karnataka State, which will be offered on charter services, bulk-charters, wet-lease, or on any

customized requirements.

In the first phase, VRL has acquired a brand new, premier jet 1A aircraft, manufactured by

Hawker Beech craft Corporation, USA. The Company has future expansion plans to add more

aircraft and helicopters, based on the market feedback and demand. Their first aim is to offer the

Jet aircraft on charter basis to the corporate sector, Leisure and Tourism Sector, Medical

Evacuation, Special Mission Charter, Event Management, Advertisement Agencies and VIP

Flights. To offer, high quality Air-charter service, to each and every customer, during every

single flight operations, is it pre-flight, in-flight or post-flight.

Wind power generation

Wind power is the conversion of wind energy into a useful form of energy, such as electricity,

using wind turbines. VRL logistics are into Wind Power generation and is doing well. But the

performance of the wind power assets was relatively disappointing as against the corresponding

previous years. Net generation of electricity was 690.44 lac KWH units as against a

corresponding previous year generation of 775.60 lac KWH units.


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Marketing Department

Marketing is an integrated communication-based through which individuals and communities

discover that existing and newly-identified needs and wants may be satisfied by the products and

services of others.

Marketing is defined by the American Marketing Association as the activity, set of institutions,

and processes for creating, communicating, delivering and exchanging offerings that have value

for customers, clients, partners and society at large. The term developed from the original

meaning which referred literally to going to market, as in shopping or going to a market to buy

or sell goods or services.

The Chartered Institute of Marketing, which is the worlds largest marketing body, defines

marketing as The management process responsible for identifying anticipating and satisfying

customer requirementsprofitably.

Marketing practice tended to be seen as a creative industry in the past, which included

advertising, distribution and selling. Marketing makes extensive use of social sciences,

psychology, sociology, mathematics, economics, anthropology and neuroscience. The overallprocess starts with marketing research and goes through market segmentation, business planning

and execution, ending with pre and post-sales promotional activities. It is also related to many of

the creative arts.

Marketing is typically seen as the task of creating, promoting, and delivering goods & services

to customers & business. Over the years, marketing has grown from a simple sales department

into a complex group of activities. Today management thinkers & practitioners all over the

world view marketing as one of the most important management functions in a business.

Marketing management is a business discipline which is focused on the practical application of

marketing techniques and the management of a firms marketing resources and activities.

Marketing managers are often responsible for influencing the level, timing and composition of

customer demand accepted definition of the term. In part, this is because the role of a marketing

manager can vary significantly based on a business size, corporate culture, and industry context.


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Marketing expert Regis McKenna expressed a similar viewpoint in his influential 1991 Harvard

Business Review article Marketing is Everything. McKenna argued that because marketing

management encompasses all factors that influence a companys ability to deliver value to

customer; it must be all-pervasive, part of everyones job description, from the receptionists to

the Board of Directors.

This view is also consistent with the perspective of management guru peter Drucker, who wrote:

Because the purpose of business is to create a customer, the business enterprise has two-and

only these two-basic functions: marketing and innovation. Marketing and innovation produce

results; all the rest are costs. Marketing is the distinguishing, unique function of the business.

Marketing Process Model

The marketing process model based on the publications of Philip Kotler. It consists of 5 steps,

beginning with the market & environment research. After fixing the targets and setting the

strategies, they will be realized by the marketing mix in step 4. The last step in the process is the

marketing controlling.

(2)

Fixingmarketing

target

(3)

Settingmarketingstrategy

(4)

Marketingmix

(5)

Marketingcontrolling

(1)

Market &environment

analysis


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Hierarchy of the Marketing Department

Basic Marketing functions carried out by VRL

Preparation of marketing strategy Implementation planning as per the strategy fixed Managing the vendors accordingly Doing advertisement and promotional activities Measurement of achievement, taking the feedbacks and controlling the system.

CHAIRMAN

MANAGING

DIRECTOR

SENIOR GM

(SALES)

SENIOR VICE

PRESIDENT

Chief Sales

Manager (North)

Chief sales

Manager (East)

Chief salesManager (West)

Chief sales

Manager (South)


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Functions of Marketing Department

Marketing management encompasses a wide variety of functions and activities, although the

marketing department itself may be responsible for only a subset of these. Regardless of the

organizational unit of the firm responsible for managing them, marketing management functions

and activities include the following:

Marketing research and analysisIn order to make fact-based decisions regarding marketing strategy and design effective, cost-

efficient implementation programs, and firms must possess a detailed, objective understanding

of their own business and the market in which they operate. In analyzing these issues, the

discipline of marketing management often overlaps with the related discipline of strategic

planning.

Traditionally, marketing analysis was structured into these areas: Customers analysis, Company

analysis, and Competitor analysis (so called 3Cs analysis). More recently, it has become

fashionable in some marketing circles to divide these further into certain five Cs. Customer

analysis, Company analysis, Collaborator analysis, Competitor analysis, and analysis of the

industry context.

Marketing management often finds it necessary to invest in research to collect the data required

to perform accurate marketing analysis. As such, they often conduct market research (alternately

marketing research ) to obtain this information. Marketers employ a variety of techniques to

conduct market research, but some of the more common include:

Qualitative marketing research, such as focus groups Quantitative marketing research, such as statistical surveys Experimental techniques such as test markets Observational techniques such as ethnographic on-site observation

Marketing managers may also design and oversee various environmental scanning and

competitive intelligence processes to help identify trends and inform the companys marketing

analysis.

Marketing strategyOnce the company has obtained an adequate understanding of the customer base and its own

competitive position in the industry, marketing managers are able to make key strategicdecisions and develop a marketing strategy designed to maximize the revenues and profit of the


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firm. The selected strategy may aim for any of a variety of specific objectives, including

optimizing short-term unit margins, revenue growth, market share, long-term profitability, or

other goals. To achieve the desired objectives, marketers typically identify one or more target

customer segments which they intend to peruse. Customer segments are often selected as targets

because they score highly on two dimensions.

1) The segment is attractive to serve because it is large, growing, makes frequent purchases,is not price sensitive (i.e. is willing to pay high prices), or other factors.

2) The company has the resources and capabilities to compete for the segments business,can meet their needs better than the competition, and can do so profitably. In fact, a

commonly cited definition of marketing is simply meeting needs profitably

Implementation planning

Likelihood of outcome

Business outcome

Efficiency

Counting

The marketing metrics continuum provides a frame work for the two categorize metrics from the

tactical to strategic. After the firms strategic objectives have been identified, the target market

selected, and the desired positioning for the company, product or brand has been determined,

marketing managers focus on how to best implement the chosen strategy. Traditionally, this has

involved implementation planning across the 4psof marketing: product management, pricing,

place (i.e. sales and distribution channels), and promotion.

Taken together, the companys implementation choices across the 4ps are often described as the

marketing mix, meaning the mix of elements the business will employ to go to market and

Predictive

Leading Indicators

Outcome based

Operational

Activity based


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execute the marketing strategy. The overall goal for the marketing mix is to consistently deliver

a compelling value proposition that reinforce the firms chosen positioning, builds customer

loyalty and brand equity among target customers, and achieves the firms marketing and

financial objectives.

Project, Process, and Vendor ManagementOnce the key implementation initiatives have been identified, marketing managers work to

oversee the execution of the marketing plan. Marketing executives may therefore manage any

number of specific projects, such as sales force management initiatives, product development

efforts, channel marketing programs and the execution of public relations and advertising

campaigns. Marketers use a variety of project management techniques to ensure projects achieve

their objectives while keeping to established schedules and budgets.

More broadly, marketing managers work to design and improve the effectiveness of core

marketing processes, such as new product development, brand management, marketing

communication, and pricing. Marketers may employ the tools of business process reengineering

to ensure these processes are properly designed, and use a variety of process management

techniques to keep them operating smoothly.

Effective execution may require management of both internal resources and a variety of externalvendors and service providers, such as the firms advertising agency. Marketers may therefore

coordinate with the companys purchasing department on the procurement of these services.

Reporting, Measurement, Feedback and Control SystemsMarketing management employs a variety of metrics to measure progress against objectives. It

is the responsibility of marketing managers in the marketing department or elsewhere to

ensure that the execution of marketing programs achieves the desired objectives and does so in acost-efficient manner.

Marketing management therefore often makes use of various organizational control systems,

such as sales forecasts, sales force and reseller incentive programs, sales force management

systems, and customer relationship management tools (CRM). Recently, some software vendors

have begun using the term marketing operations management or marketing resource

management to describe systems that facilitate an integrated approach for controlling marketing

resources. In some cases, these efforts may be linked to various supply chain management


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systems, such as enterprise resource planning (ERP), material requirements planning (MRP),

efficient consumer response (ECR), and inventory management systems.

Mission Statement of Marketing Department

VRL aim is to know and understand the customer so well that the product/service fitshim & sells itself.

VRL goal is to deliver the desired satisfaction more effectively & efficiently than theircompetitors.

VRL aim to build customer loyalty & life time value.

VRL Marketing Objectives

Maximum long-run profit and short-run profit Increase sales volume (quantity) Increase monetary sales and market share Obtain a target rate of return on investment (ROI) Obtain a target rate of return on sales Maintain market leadership and company growth Enhance the image of the firms services Create interest and excitement about service To will meet the customers demands

Characteristics

They identify their competitors & analyze them They study customer needs & wants in well defined market segments They measure company image & customer satisfaction on Continuous Basis They collect timely information about competitors


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The Channel of Distribution

The Channel of Distribution in Remote Places

VRL

DEALER

MARKET

VRL

MARKET


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Promotion

Promotion is that marketing communication activity that attempts to inform and remind

individuals and persuade them to accept, resell, recommend or use a product or service or idea.

Promotion involves disseminating information about a product, product line, brand, or company.

It is one of the four key aspects of the marketing mix. Promotion is generally sub-divided into

two parts:

Above the line promotion: Promotion in the media (e.g. TV, Radio, Newspapers, Internetand Mobile Phones) in which the advertiser plays an advertising agency to place the ads.

Below the line promotion: All other promotion. Much of this is intended to be subtleenough for the consumer to be unaware that promotion is taking place. E.g. sponsorship,

product placement, endorsements, sales promotion, merchandising, direct mail, personal

selling, public relations, trade shows.

The specification of these four variables creates a promotional mix or promotional plan. A

promotional mix specifies how much attention to pay to each of the four subcategories, and how

much money to budget for each. A promotional plan can have a wide range of objectives,

including: sales increases, new product acceptance, creation of brand equity, positioning,

competitive relations, or creation of a corporate image.

Promotional Strategies of VRL

Promotional schemes to dealers, which include price deals and buying allowances. Through internet by login on companys website for e-bus ticketing.

Marketing Challenges of VRL

Diversified activities make problems to achieve marketing goals. Entry of global market players in courier and cargo industry High completion from public transport companies like KSRTC Delay in to adopting new market changes to improve the quality service Traditional way of advertisement is not much effective now a day Central Control makes delay in decision making Lack of an effective marketing team

vrl chapter 4

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