CHAPTER-1 INTRODUCTION At the dawn of the new millennium Kitex entered in to the baggage and luggage industry under the br and and name „SCOOBEE DAY‟ and „TRAVELL DAY‟ respectively. Kitex have a wide variety of travel bags, trolley bags, business bags, laptop bags and back bags under the name of travel day. The factory is engaged in continuous production of bags and a quality of 14 lakhs of bags came out the last year the fabrics for the bags are mainly imported from china Taiwan etc. sample for the design may be brought from outside the country to produce the best quality design that can be matched with other international brands new designs for the bags are sketched using computers by various experts in the department the production is carried out on a continuous basis. After the final stitching of bag each unit is taken separately for strict quality check. Besides that random checking is also made by quality control section imported and domestic machineries are used in the factory which can function continuously without any break computer programmed machines are also used in the plant which can perform multiple task the factory runs on one shift from 8.30am-6 pm at the time of season the work start from 8 a m and is continues up to 9 pm in such cases overtime allowance is given to the workers DISTRIBUTION CHANNEL A distribution channels set of interdependent organizations that help make a product available for use or consumption by b y the th e consumer or business user .channel intermediaries are firm or individuals such as wholesalers,agents,brokers or retailers who help move a product from the producer to the consumer or business user. A company‟s channel decision directly affects every other marketing decision distribution can some time give a product a distant position in the market. The choice of retailers and other intermediaries is strongly tied to the product itself. Manufacturers select mass merchandisers to sell mid-price range products while they distribute top of the line products through high-end department and specialty stores
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1.1 INDUSTRY PROFILE 1.1.1 INDIAN TEXTILE INDUSTRY
The Indian textile industry, which has a tradition of over 5000 years, is on the verge of creating history. If the industrialization by its colonial masters reduced the status of Indian textiles as glorified converters, the rule based trading symbolized by the World Trade Organization is expected to propel Indian textiles as global clothier, secondly in China. The journey from being a colonial master‟s converter to becoming a nerve center for outsourcing essentially captures the survival instincts of Indian textiles. Not a day passes without Indian textiles being featured in International forums and global magazines. Entrepreneurs Entrepreneurs and and
corporate houses that have made
necessary adjustments to meet global challenge could reap windfall gains, while the others could marginalized. Nevertheless, it should be admitted that adoption of worldclass technologies, economies of scale and global manufacturing practices are very vital. India‟s textile industry is crucial to the national economy. Besides, it plays an important role in the country‟s macroeconomic level. It contributes about 3 percent to the gross domestic product of our nation, accounts for 14 percent of industrial production, generates 8 percent of the central excise revenue and contributes around 24 percent of total exports. The industry is second largest employment provider after the agriculture sector employing over 38 million people directly and another 50 million indirectly. The structure of Indian Textile industry is a bit complex. On one hand it is marked by the presence of large scale organized players while on the other hand are the numerous small scale independent units. The growth of the small scale industries was backed by the middleman in the textile fabric trade. Traditionally the, textiles have had a long chain of intermediaries like wholesalers, distributors, agents etc. these intermediaries were making arms of the mill and played an important role in maintaining contact with the final customer that is the retailer. The intermediaries in order to sustain their business resorted to buying from independent units also. The textile industry is characterized by the combinations of cotton farm and ginning sector, synthetic and manmade fiber industry, spinning sector, weaving sector and
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1.1 INDUSTRY PROFILE 1.1.1 INDIAN TEXTILE INDUSTRY
The Indian textile industry, which has a tradition of over 5000 years, is on the verge of creating history. If the industrialization by its colonial masters reduced the status of Indian textiles as glorified converters, the rule based trading symbolized by the World Trade Organization is expected to propel Indian textiles as global clothier, secondly in China. The journey from being a colonial master‟s converter to becoming a nerve center for outsourcing essentially captures the survival instincts of Indian textiles. Not a day passes without Indian textiles being featured in International forums and global magazines. Entrepreneurs Entrepreneurs and and
corporate houses that have made
necessary adjustments to meet global challenge could reap windfall gains, while the others could marginalized. Nevertheless, it should be admitted that adoption of worldclass technologies, economies of scale and global manufacturing practices are very vital. India‟s textile industry is crucial to the national economy. Besides, it plays an important role in the country‟s macroeconomic level. It contributes about 3 percent to the gross domestic product of our nation, accounts for 14 percent of industrial production, generates 8 percent of the central excise revenue and contributes around 24 percent of total exports. The industry is second largest employment provider after the agriculture sector employing over 38 million people directly and another 50 million indirectly. The structure of Indian Textile industry is a bit complex. On one hand it is marked by the presence of large scale organized players while on the other hand are the numerous small scale independent units. The growth of the small scale industries was backed by the middleman in the textile fabric trade. Traditionally the, textiles have had a long chain of intermediaries like wholesalers, distributors, agents etc. these intermediaries were making arms of the mill and played an important role in maintaining contact with the final customer that is the retailer. The intermediaries in order to sustain their business resorted to buying from independent units also. The textile industry is characterized by the combinations of cotton farm and ginning sector, synthetic and manmade fiber industry, spinning sector, weaving sector and
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composite mills. The presence of a large number of players in each sector, none of whom is large enough to stimulate demand, has led to a situation where in the industry as a whole cannot compete effectively or counter any attack of the competing rivals of the industry. In the earlier period we can see that the US and European economies restricted imports of textile products from the different countries through Multi-Fiber Agreement. India under MFA received a quota of 2 percent and 3 percent in the US and European markets. However in 1995, a new agreement, Agreement on Textile and Clothing (ATC) was signed and this was aimed at phasing out the MFA, this in effect ended the quota regime. This is of benefit to developing nations like India, which has a big textile industry setup. The Indian textile industry has a peculiarity i.e. not only the industry grows its own raw materials like silk, cotton, jute, wool but also processes the same into high value products like fabrics and garments. Our main competitors in the textile sector include China, Bangladesh, Sri Lanka, Indonesia and Pakistan. Like India, these countries too are cost-effective producers due to advantage of lower labor costs. But we have advantage over them, say if we compare labor cost of china they may have an upper hand but still we can see that biggest advantage we have is the capital cost. One big advantage we have over the whole of Asia would be from outsourcing. The Indian textile industry has a long way to go to achieve a sustaining competitive advantage. The industry is very much fragmented and poor access to finance and technology has been affecting the growth prospects of smaller manufacturers. We face problems due to new market dynamics, high power cost, and lack of basic infrastructure facilities. We can see that even though the Indian textile goods are known internationally through generic names like Mysore Silk, Kancheepuram Silk, Bengal Cotton and Kashmiri Shawl, the irony is that none of these has been promoted aggressively in the international market. We also suffer from overcapacity, outdated technology, labor problems and debt levels that strained profits. There are heated debates on Chinas competitive edge over the Indian industry took over the center-stage and, with China often being pronounced as the biggest gainer after the removal of restrictions or quotas on textile clothing. While India has
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an advantage of a low-cost raw material base and abundant cheap labor, it is less competitive than China. Over the past years, companies have to setup captive power plants to ensure regular supply and control costs. Replacing high cost fuel with cheaper alternatives, such as LNG for Naphtha, was another to cut costs. The removal of reservation of for small scale units in the garment sector has also stimulated the investment in the sector. Fabric makers have setup garment manufacturing units to cater the needs of export market. The fragmented nature of the industry has made its supply chain unreliable. It takes India between 40 and 60 days to ship goods to US, while it takes China around 15 days, because of the letters superior infrastructure. The year 2004 saw the Indian textile industry waking up from its prolonged hibernation. The industry witnessed intense preparation for the post quota regime on the part of players who believed that India would be the next best alternative source of apparel. A number of companies took to upgrading their out dated technologies. The Indian textile industry is racing against time and there is a feeling that if critical gaps are addressed in a time-bound manner, the industries can double its presence in the global market by 2010.
1.2 COMPANY PROFILE 1.2.1 KITEX LIMITED
Anna Group‟s Textile unit KITEX LIMITED was established in 1975 at Kizhakkambalam Always in Ernakulum District. This prestigious company one of the vibrant divisions of Anna – Kitex Kitex group of companies is a celebrity among industrial giant in our country. Their products have high demand and they were trying to create and maintain their customers in this competitive world with their high quality. The shares of the company are held by the proprietor are themselves. Kitex has strength of well experienced managers who guide the organization towards excellence. Kitex has ISO 9001-2008 certification. Kitex Limited has seven departments and they follow military type of organization structure. Through the years, the company has carved a niche for itself in this highly competitive industry with its tradition of world class quality of its products. The Kitex
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range of garments manufactured in the multi core factory is popular brand that is recognized not just within India, but abroad too. Catering to the fashion conscious markets across the world made from 100% combed cotton. Kitex bed sheets are suitable for all climates and come in a variety of shades and designs. Kitex Limited is a union free company. The plant has the capacity to produce cotton fabrics, polyester blends, grey cloth, bed sheets, lunges, dhotis, fabric school and college bags, travel bags, inner wears, shirting and suiting, kid‟s wearetc. The plant functions around the clock in three shifts and it has a capacity to produce 35000 square meters per day. The products are market through the network of over 2000 dealers. The company was established to set up an efficient estate that provide technical industrial ,financial and marketing facilities to power loom owners and to create job opportunities. To create unemployed considerable infrastructure facilities have been built by way of building, electrical distribution systems, supporting machineries for wrapping sizing etc. to help power loom owners. About 400 power loom were established in premises under the banner of Kizhakkambalam Textile Limited (which has been renamed as Kitex Limited) The group has got highest reward for the welfare of the employees and public several charitable programs are organized for the lower strata of the society. The group is also providing a very good accommodation and canteen facility to employee who hails from all over India. In a market survey done in 2007 consumerable products named TOP 20 PRODUCTS in Kerala, Kitex got 11 th rank with score of 201.8736.The rank decided on basis of consumers acceptance or popularity. 1.2.2 VITAL STATISTICS
Name
: KITEX LIMITED
Address
: Kizhakkambalam , Alwaye, Ernakulam
Registered Office
: Kizhakkambalam
Year of Commencement
: 1975
Nature of incorporation
: Public Limited Company 5
Nature of Business
: Manufacturing cotton textiles, bags, cotton fabrics, grey
Chairman
: Mr.M.C.Jacob
Managing Director
: Mr. Bobby .Jacob
Type of Product
: industrial product and consumer products
Name of Product
: Scoo Bee Day Bags and Travell Day Bags
Brand name of product
: KITEX
1.2.3 VISION
A world class manufacturing company focusing on all around business excellence through a Total Quality Management (TQM) system with committed leadership „effective team work delighted customers and satisfied employers in an environmental friendly organization. 1.2.4 MISSION
To manufacture fabrics and processed fabrics as per the specification efficiently in a professional and environment friendly manner, on time and at the right cost at with higher customer specification to become a world class organization through continuous improvement. 1.2.5 QUALITY OBJECTIVES 2010-2011
a)FABRIC DIVISION
To maintain the sales quantity OF 2009-2010 during the ear and 2010-2011 in the context of global recession.
To reduce the sales below 0.25% of the total sales volume.
b)BAG DIVISION
To increase the sales quantity of school bags by 10% with respect to sales quantity for the previous year.
To reduce the customer complaint by 10% with respect with previous year.
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c) GARMENT DIVISION
To increase the capacity utilization by 25% from the existing level.
To increase the number of dealers by 25%.
d) QUALITY POLICY We are committed to manufacture and deliver quality fabrics ,bags and readymade garments as per the costume specification and requirements ,efficiently in a professional and environment friendly manner on time and at the most customer satisfaction while during to become a world class organization through continual improvement .
1.3 STRATEGIC BUSINESS UNIT OF ANNA GROUP 1.3.1ANNA GROUP OF COMPANIES
More than three decades ago, in 1968 when Mr.M.Jacob founded the Anna Aluminum Company, he made a break with the past. Belonging to an affluent family of plantation owners, he ventured into the risky world of manufacturing industry and hoped for the best, while working very hard to make his maiden venture a great success. . 1.3.2ANNA ALUMINIUM
Anna aluminum is the flagship company of Anna group. Engaged in the manufacturing and the marketing of vessel and utensils as per ISI standard s for the past three decades, it is presently the only company having ISI certification for the vessels in Kerala. The company manufactures vessels only using 99.55 pure aluminum ingots.
1.3.3SARAS SPICES
Sara‟s spices were found in 1978 to process and market, domestically and internationally. Spices and hill product like pepper and cardoon, turmeric, masala & curry powder. High standard of quality and hygiene have won arcades at home and abroad as well as AGMARK etc. 7
1.3.4KITEX LIMITED
Anna group weaving unit, KITEX limited was established in 1975. The company is engaged in the production of fabric made of cotton and other blends grey cloth bed sheets and lungies. Through the years, the company has carved a niche for itself in this highly competitive industry with its tradition of world class quality of its products. The Kitex range of garments manufactured in multi crore factories are a popular brand that is recognized not just within India but abroad too ,creating to the conscious market across the world. Made from 100% combed cotton ,Kitex bed sheets are suitable for all climates and come in variety of shades and designs. At the down of new millennium Kitex entered into the school bag and college bag industry under the brand name Scoo Bee Day and then also entered into the production of travel day bags under the brand name Trawell Day. Some of the important products available under Kitex are:
Dogobert Shirting and suiting
Agna and Adonis inner wear.
Scoo Bee Day Bags
Travel day bags
1.3.5KITEX GARMENTS LIMITED
Kitex Garments Limited is developed solely to manufacture and export readymade garments like hosiers, shirts woven, polar fleece,t-shirts,night wears, and cotton under garments like inner wear, outer wear and knitted cotton wears. The highly equipped and flexible manufacturing system makes Kitex garments extremely capable of adapting vigorously to the changing needs of the world fashion market. The company has stopped the production and export of adult garments and will focus exclusively on children‟s garments for which a new company is floated Kitex Children‟s wear Limited . 1.3.6KITEX COMMUNITY COLLEGE
Kitex community college is started for the purpose of training for unemployed people to provide employment opportunities. Presently the courses are available in
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the community college are Life Copying ,Communication General English ,Apprenticeship and training ,tailoring ,bag making and utensil manufacturing.
1.3.7SEALAND MARINE LIMITED
It‟s a new company incorporated with a view to the new trust area namely Marian Exports. The company has acquired over 100 acres in Pondicherry for setting up an integrated aqua culture division ,comprising hatchery and grower ponds. Increased field of shrimps through effective scientific management has enabled to bring in much ridded foreign exchange to the company . 1.3.8KITEX EXPORTS LIMITED
The Kitex Export Limited is the merchant export house of the Kitex group exporting a range of all products all over the world.
1.4 MARKETING DEPARTMENT OF KITEX Kitex Limited has got a very good marketing department ,controlled by efficient and dynamic marketing managers. Marketing managers reports to General Manager and Managing Director. Marketing department is divided into three sections such as Marketing ( Grieve Fabric ) Marketing ( Finished fabric /bags) and Marketing ( Advertising and sales promotion ). Under each section Assistant Managers ,Marketing Executives ,salesman is there to assist him. The company markets its processed products mainly through dealers. Almost all Kitex products are available at the dealer shops. The products are transported to the dealers by delivery vans. Sales executives take orders of different items from the dealers once in a month. The company is selling its greige fabrics as such as to various garment exporters to Mumbai ,Delhi ,Calcutta ,and Ahmedabad etc. . 75% of the sales are done through authorized agents on commission basis and balance is through direct marketing. The garments manufactured by the group under the brand name Kitex are expected all over the world. Marketing manager is the one who decides the marketing strategies that is to be adopted and every major decision ,which affects marketing. But while making some strategies and important decisions approval of the Managing Director is required .
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After collecting the orders from the dealers through sales executives the Marketing Manger have to forward the orders to production Manager sits together and decide the production plan. 1.4.1 CO-ORDINATING OF MARKETING ACTIVITIES The marketing executive in Kitex follows certain procedures. All sales executives have to report to the assistant managers in sales every day. The assistant manager and marketing manager are in constant touch with the sales executives who are in the field. The sales executives have submitted daily sales report in all Mondays. There is meeting of all personnel in marketing department is presided by the General Manager. In this meeting all the activities and achievements are discussed. New plans and strategies to increase the sales formulated and the other issues are discussed. 1.4.2 MARKETING POLICY
Kitex has a dealer network of more than 25000 dealers spread all over Kerala ,Karnataka and Tamil Nadu. There are direct outlet in Kerala and Tamil Nadu . dealership are allotted only after assessing credit worthiness ,efficiency etc, the company‟s sales representatives deliver the goods to the dealers at their places as per the over placed by them. The company motivates the sales executives by providing them classes of expert trainers in sales. The dealers got 10% interest on their trade deposits annually. The company also does various activities for motivating the dealers. If a dealer achieves the target placed by the company then he will get various gifts such as free domestic tours ,price coupons etc., the company also conduct dealer meets where all dealers along with their families come together and celebrates . Salesman is also motivated by the company by giving prize coupons which will be deposited in the boxes of order. 1.4.3 MARKETING STRATEGY Marketing department of Kitex is very vigilant of the external and internal environment and well aware of the market potential ,major competitors ,strength and weakness of the company etc. as a result of stiff competition ,the top management has appointed a general manager (marketing) who looks overall activities very efficiently. The company uses various promotional tools such as advertisement in print media and television. Earlier the company used to advertise one FM Radio. But now after doing research, the company officials found that the effect of those Radio 10
advertisements is not up to the market. The company has got various advertisement agencies like Chavera Agencies, X Dous and TVC Factory etc. In all promotional activities emphasis is on the quality of the product. The company also gives one year guarantee for all its products. 1.4.4 MARKET SEGMENTATION Market segmentation is made on the basis of age group ,task and preference etc. and the marketing segmentation procedure of Kitex mainly focus on survey. Marketing manager heads the survey process and the staff of research and development department does this process which include internal interview with a focus group of customers. These surveys will help to know the changing behavior of customers taste and preference etc. using research and development which is administered to a sample of customers to collect data on the following brand awareness and rating ,product usage and patter ,demographic psychographic ,psychographic or geographical details of respondents. 1.4.5 MARKETING MIX It consists of everything a firm can do to influence demand for its products. Kitex also follows the idea of marketing mix they are, 1.4.6 PLACE MIX
Location of the plant is one of the first decisions an entrepreneur has to make earning maximum profit. Location determines the survival as well as the property of business in free market economy. The unit is located in Kizhakkambalam, Aluva. The total extend of land is about 1650000 square feet. It is well connected with the road. The availability of the skilled and unskilled labour is also a factor in selecting the location. 1.4.7 PRODUCT MIX
The greige fabrics produced are of finest quality and mostly used for export purpose. They provide greige fabric lungies ,bedsheets etc. in various products is reputes for its quality and free weaving defects up to greater extents. The special feature is that raw materials are passed through strict inspection. 1.4.8 PRICEMIX The company maintains a stable price for a longer period of time. Price of products depends upon the price of the yarn. It maintains a constant price and concentrates on the quality of the product. So it requires the less investment in
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advertisement and sales promotion and also a very well formulated pricing policy is provided. 1.4.9 PROMOTION MIX To promote its products advertisement are used by Kitex. The basic function of an advertisement is to influence and motivate people to buy products. In Kitex various advertisement agencies are called upon duty and brief idea is given about what to advertise and these agencies prepare a pre demonstration.
Television
- Doordarshan, Asianet, Surya etc.
Video
- CEE Videos , SAN Communication
Closed circuit
- KSRTC , Railway station etc.
Print Media
All Malayalam dailies, Magazines like Vanitha, Grihalakshmi etc.
Demonstration
- Club and exhibitions, Banner, Metal Boards, Wall
paper Advertisement agency
- TVC Factory, Ernakulam
Paper advertisement
- Chavera Agency, X Dous
1.5 CHANNEL OF DISTRIBUTION KITEX Distribution is the act of carrying goods or services from the producer to the consumer. Distribution of consumer goods, Producer
Consumer
Producer
Retailer
Producer
Wholesaler
Consumer Retailer
Consumer
Distribution of industrial goods, Producer
Industrial consumer
Producer
Agent
Industrial consumer
Customers of Kitex are average and above average people. There is approach as favorable condition for Kitex in the markets and the company channels of distribution.
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1.6 INCENTIVE SCHEMES TO DEALERS
In Kitex limited cash discount is the main incentive given to dealers.. If a dealer purchase more quantity and at the same time make payment in cash immediately, cash discount is allowed. Apart from these dealers is given quantity discount also when they purchase more goods at a time. Sometime the dealer gets each quantity discount simultaneously. Main incentives are,
Cash discount
Quantity discount
15 days credit
Alternative ways supply
Prompt service
Dot service
Advertisement support.
This year the company excepts 20 -30% increase in sa les. 1.7 SCOO BEE DAY At the dawn of the new millennium the new generation was presented with an innovative school bag from Kitex, the main off shoot of Anna group. Scoo Bee Day bags are compactly designed with unique features that make it durable, colorful ,comfortable and easy to carry. The bag features anti strain shoulder paddings and acupressure buds specially designed to minimize the strain on the back and shoulders. Scoo Bee day , from the house of Kitex has a wide range of school bags which became an instant hit, and scoo bee day came a close companion to all school going kids. With shoulder strap cushions and rear padding for added comfort, Scoo bee day bags comes in various colour combinations. Using Ribstop fabric and Leak proof material scoo bee day bags are attractively priced. The unique features include special features include special pouch for waterbottles,Tiffin boxes and even a secret pocket. 1.7.1 FEATURES OF SCOO BEE DAY BAGS
Made from imported Dineer Nylon for durability
Shoulder strap cushion to prevent shoulder pain
Soft padding and acupressure buds on the rear side to cushion your back
Unique stitching using strong nylon threads 13
Quality zip with zip guard to prevent water leaking into the bank
Secret pocket to hold chocolate and money
15 different colour combinations
Special leak proof Tiffin box pouch at attractive prices
Bags for college and travel purposes also available
1.7.2 PRODUCTS IN SCOO BEE DAY
Romeo
Gypsy large and medium
Pride
Challenge – large and medium
Promise- large ,medium and small
Liberty – large medium and small
Stylo – large medium and small
Twinkle
Delight – large medium and small
Hip – top – large, medium and small
Hero plus – large ,medium and small
Nova plus Spark – large, medium and small
TRAWELL DAY BAGS
The renowned Anna – Kitex Group ,manufactures of quality consumer products forayed into the travel bag segment with its travel day bags, wide range of luggage and baggage products. Coming up with latest designs and models ,these travel & every day travel luggage needs are designed to meet the modern trends and requirements of the customers. Made from the imported materials ,the bags are available in attractive styles and different colour combinations. TRAWELL DAY BAG offers,
Travel bags
Trolley bags
Business bags 14
Laptop bags
Back – Pack bags
Beauty case bags
1.8 Future vision of Kitex Limited
To reach excellent quality standard in the coming years.
To keep in pace with modern technologies and concepts
To organize supply of material at minimum cost without any compromise in quality.
.A world class manufacturing company focusing on all around business excellence through Total Quality Management (TQM) system with committed leadership ,effective team work
The target primary audiences for campaign are children and the secondary audiances are their parents. Television is the most preferred media currently used by the manufacturers. The point of purchase promotion strategy is also followed by the manufacturers through the retail outlets. The major school bag manufacturers in India are : 1. Bharath packers , New Delhi 2. Uniplas , Chennai 3. Imprez , Mumbai 4. Balaji Bag ,Banglore 5. Brands ,New Delhi 6. Noor , Tamil Nadu 7. Anna Group , Kerala 8. Lunar Bags , Mysore
1.9 School bag industry in Kerala
School bag industry is dominated by unorganized sector, except for a few national brands like Duck Buck and Bata. Most of the players have seasonal nature. The demand for the products arises during the school opening. Even though school bags are mainly dominated by the local manufacturers ,branded school school bags are also available. One of the well-known names among the branded school bags is 15
the brand Scoo Bee Day. School bag industry focuses a great threat from China. Chinese bags are less costly than our local bags. However the branded companies come up with providing advertisements in Television. The school bag industry mainly focuses on the kind and preprimary segments. These groups are more addicted to comic characters. ORGANIZATION STRUCTURE
Managing Director
General Manager
Marketing Manager Financial Manager
Accountants assistant
Production Manager
Purchase Manager
Administration & personnel
Clerical staff
Taxation Supervisor
Assistant Marketing manager
Assistant advertising & sales Manger
Supervisor
Marketing representative
Sales representativ
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1.10 PRODUCT PROFILE Kitex is engaged in the production of all verities of grey fabric made of 100% cotton, cotton linen, cotton lycra, polyester lycra etc. in various weaves like cambric, sheeting, poplin, mulls, easements, drills, twillslions, stain, bed fords, stripes dobbys etc. lunges, dhotis, bed spreads etc. for replacement and international trade. The products manufactured by the company are industrial goods and consumer durable good. 85% of the goods (Grieg cloth) are sold as other companies per production units in the textile and garments. 15% of the greige cloth manufactured by company is converted to lunges, dhotis, mulls, and bed spreads. Various units in Tamilnadu do this conversion. The conversion process includes resizing, mercerized, bleaching, printing, dyeing etc. the products sent for processing will take one and a half month for completing the cloth and are then repacked to make it ready for dispatch. 1.10.1 Kitex bag division
At the dawn of the new millennium, Kitex entered in to baggage and luggage industry under the brand name SCOOBEE Day and TRAWELL DAY respectively. Kitex have a wide variety of travels bags, trolley bags, business bags, laptop bags and back bags under the name of travel day. The factory is engaged in continuous production of bags and a quality of 14 lakhs of bags came out the last year. The fabrics for the bags are mainly imported from china, Taiwan etc. sample for the design may be brought from outside the country to produce the best quality design that can be matched with other international brands. New designs for the bags are sketched using computers by various experts in the department. The production is carried out on a continuous basis.
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OBJECTIVES OF THE STUDY
To study about the distribution channel of Kitex scoobeeday bag
To study about the market potential of scoobeeday bag
To find out brand position of scoobeeday bags
To examine the existing mechanism of supply of scoobee day bags.
To assist the dealer‟s satisfaction level of scoobee day bags.
To find out the factors influencing the dealers to deal in scoobee day bags.
To find out the present problems faced by dealers and to identify the mechanism for enhancing effectiveness of distribution channel.
LIMITATION 1. The study does not evaluate the distribution channel in connection with
different market segment. 2. The accuracy of data is depends on the corrected answers given by the
respondent. 3. The survey is conducted in Ernakulam district only.
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CHAPTER-2 REVIEW of LITERATURE In ancient days, education consisted of oral training followed by some manual labour. It was the practices of the traditional „Gurukulam‟ education system. The students then known as the disciplines sit at the feet of guru and learn from face to face. There was nothing to carry at that time. As days go by, education has become more text oriented and the student is bounded to carry books in their hands. In olden days, carrying books was not a tire some job, since the number of books was very limited. As the number of books increased along with the advent of the modern education system, it is impossible for students to carry their book and allied utensils in their hands. Nor is it possible for them to carry in paper fold etc. it is in this context bag were introduced for the use of children t o keep their paraphernalia. The bag is generally a container made of flexible material such as paper, cloth leather etc. with an opening at the top used for carrying things from place to place. In the present setup, bag is an important part of the student community. Now bag are designed to suit the various requirements of students. It is useful, comfortable, fashionable and convenient. There are Varity of bag with different features available in the market. The young students are haunted by the convent well designed bags and the parent also goes for durable and comfortable bags to be use d by their children. Distribution channels
A distribution channels is a set of interdependent organization that help make a product available for use or consumption by the consumer or business user. Channel intermediaries are firm or individual such as wholesaler, agents, brokers or retailers who help move a product from the producer to the consumer or business user. A company‟s channel decision directly affects every other marketing decision. Distribution decision can some time give a product a distant position in the market. The choice of retailers and other intermediaries to sell mid-price range products while they distribute top of the line products through high-end department and specialty
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stores. The firm sales force and communication decisions depend on how much persuasion, training, motivation and support to channel partners need whether a company develops or acquires certain new depend on how well those product fit the capabilities of its channel members. Number of channel level
Company can design their distribution channels to make products and services available to customers in different ways. Each layer of marketing intermediaries that perform some work in bringing the product and its ownership closer to the final buyer is a channel level. Because the producer and the final consumer both perform some work, they are part of every channel. Figure 1-a customer marketing channel Producer
Producer
Producer
Wholesaler Retailer Retailer
Consumer
Consumer
Channel 1
Consumer
channel 2
channel 3 Figure 1- B business marketing channel Producer Producer
Producer Manufacturer’s
Business distributers
representative or sales branch
Business distributors Business
Business
Consumer
Consumer
Business Consumer
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Channel 1
channel 2
channel 3
The number of intermediary level indicates the length of a channel. Above fig 1 A show a consumer distribution channels of different lengths. Channel 1, called a direct marketing channel, has no intermediary levels, the company sells directly to consumers. The remaining channels in figure are indirect marketing channels, containing one or more intermediaries. Figure 1-B shows some common business distribution channels. The business marketer can use its own sale force to sell directly to business customers. Or it can sell to various types of intermediaries, who in turn sell to these consumers. Consumer and business marketing channels with even more levels can sometimes be found, but less often. From producer point of view, a greater number of levels mean less control and greater channel complexity. Moreover, all of the institutions in the channel are connected by several types of flows. These include the physical flow of products, the flow of
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CHAPTER-3 RESEARCH METHODOLOGY According to American marketing association “marketing research is the function which links the consumer, customer and public to the marketer through information used to identify and define marketing opportunities and problem, generate refine and evaluate marketing action , monitor marketing performance and our understanding or marketing as a process
Research design
As the study starts with drawing insights into research problem at the unit level. For this study the research design was confirmed to descriptive research design in order to understand the cause and effect of different variables which are connected with the study.
Research method
The source of data: - Both primary and secondary has been collected for this study. 3.1 PRIMARY DATA: primary data are those which are collected a fresh and for
the first time and thus happen to be original in character. For this study it has Been collected through interview method from 100 respondents with the help of a structured interview method questionnaire. 3.2 SECONDARY DATA: - as the exploratory stage of the study a detailed survey
of literature has been undertaken in order to familiarize with various aspects of distribution channels in marketing. For this purpose, company balance sheet, internal record, department & marketing documents were surveyed. A detailed survey of literature could help the researcher to collect and discover the important variable relevant to the problem. A pilot study has been conducted with help of a draft schedule for evaluating the status quo of ScooBee day bags marketing during 201
Research instrument
- Questionnaire
Sample size
- 100
Sample technique
- Simple random sampling 22
Tools
- percentage analysis and graphical solution
3.3 Analysis tools
After the collection of data ,from the respondent each sample question are coded and tabulated and then subjected to analysis. The data updated was analyzed using the following tool . 3.4 Percentage
The percentage of the respondent coming under the same category was founded as it helps to know the response of the dealers more clearly 3.5 Diagrammatic representation
Diagrams are used to represent the tabulated data diagrammatically. This will give the vivid picture about the information collected. 3.6 Pie diagram
In the pie diagram , different segments in a circle represent percentage contribution of various compounds to the total. This chart is very useful because it clearly bring out the relative importance of the various components. Angle is to represent 100% and the corresponding angles for each component can be founded by multiplying 360 degree with percentage of components.
.
23
DATA ANALYSIS AND INTERPRETATION TABLE NO: 1 FIELD OF DISTRIBUTION
OPININON
NUMBER OF RESPONDENTS
PERCENTAGE
WHOLESALER
50
50%
RETAILER
50
50%
TOTAL
100
100%
CHART NO:1-FIELD OF DISTRIBUTION
NUMBER OF RESPONDENTS
WHOLESALERS RETAILERS
Inference It is inferred that 50% of the respondents are wholesalers and 50% of
respondents are retailers.
24
TABLE NO:2 EXPERIENCE IN DEALING WITH THE KITEX SCOOBEE DAY BAGS
CATEGORY BELOW
NUMBER OF RESPONDENTS 2
YEARS
PERCENTAGE 125
12 19%
2-4 YEARS
19 47%
4-6 YEARS
47
MORE THAN 6 YEARS
22% 22 100%
TOTAL
CHARTNO:2
100
EXPERIENCES
WITH
KITEX
SCOOBEE
DAY
BAGS
EXPERIENCE WITH KITEX SCOOBEE DAY BAGS BELOW 2 YEARS 2-4 YEARS 4-6 YEARS MORE THAN 6 YEARS
Inference
Majority of the respondents, about 47% have 4-6 years‟ experience with Kitex ScooBee Day Bags and 22% have more than 6 years of experience, 19% have 2-6 years and 12% have below 2 years of experience
25
TABLE NO:3
Present popular brand name in school bag business Brand name
Number of respondents
Percentage
Scoobee day
55
55
Reebok
10
10
Diesel
15
15
Other
20
20
Total
100
100
Pesent popular brand name in school bag business
Scobee day Reebok Diesel Other
Inference Majority of the respondents have the opinion that the Scoo Bee Day is the most popular brand name in the school bag business. Other important brands are Diesel ,Reebok etc.
26
TABLE NO:4
Factor that influence you to deal with scoobee day bags Factors
Number
of Percentage
respondents Price
20
20
Quality
43
43
Availability
15
15
Brand image
17
17
Other
5
5
Total
100
100
Factor that influence you to deal with scobee day bags
Price Quality Availability Brand image Other
Inference It is found that the factors that influence the dealers to stock Scoo Bee Day Bags are quality of product and brand image.
27
Table No: 5 Satisfaction with the product line/ variety that Kitex provides
Category
Number of respondents
Percentage
Highly satisfied
23
23%
Satisfied
68
68%
Dissatisfied
7
7%
Highly Dissatisfied
2
2%
Total
100
100%
Chart No: 5
SATISFACTION WITH THE PRODUCT LINE / VARIETY THAT KITEX PROVIDES 2% 7% 23%
68%
Inference It is known that majority of the respondents about 68% are satisfied with
product line/ variety and 23 % were highly satisfied, 7% were dissatisfied and 2% were highly dissatisfied
28
Table No:6 Table showing opinion regarding the credit facility of Kitex
Category
Number of respondents
Percentage
Very good
16
16%
Good
23
23%
Average
46
46%
Poor
15
15%
Total
100
100%
Chart No 6
OPINION REGARDING THE CREDIT FACILITY OF KITEX
15%
16%
Category Very good 23%
Good Average
46%
Inference:
Majority of the dealers about 46% have average opinion regarding the credit facility of Kitex and 23% have good opinion and 16% have very good opinion and 15% have poor opinion regarding the credit facility of Kitex.
29
Table No: 7 Flexibility of credit facility
Opinion
Number of respondents
Percentage
Yes
62
62%
No
38
38%
Total
100
100%
FLEXIBILITY OF CREDIT FACILITY
Alternatively Weekly
Inference:
It reveals that majority of respondents about 62% said that credit facility is flexible and 38% said that credit facility is not flexible.
30
Table No:8 Order executed on time from the company
Opinion
Number of respondents
Percentage
Yes
86
86%
No
14
14%
Total
100
100%
Chart No:8
ORDER EXECUTED ON TIME FROM KITEX
Alternatively Weekly
Inference:
It is inferred that 86% of the respondents are satisfied with the timely execution of order by Kitex and 14% of respondents are not satisfied.
31
Table No:9 Frequency of visit of Kitex executives
Category
Number of respondents
Percentage
Alternatively
22
22%
Weekly
12
12%
Fortnightly
10
10%
Monthly
56
56%
Total
100
100%
Chart No:9
FREQUENCY OF VISIT OF KITEX EXECUTIVES
22% Alternatively Weekly 12%
56% 10%
Fortnightly Monthly
Inference:
It exhibits that most of the respondents about % said that visits of executives is monthly, 22% were alternatively, 12% were weekly and 10% said it is on for nightly.
32
Table No:10 Opinion regarding communication between Kitex and dealers
Category
Number of respondents
Percentage
Very good
26
26%
Good
62
62%
Average
12
12%
Poor
-
-
Total
100
100%
VERYGOOD GOOD AVERAGE POOR
Inference:
It exhibits that most of the respondents about 62% have good opinion regarding communication between Kitex and 26% have very good communication and 12% have average communication
33
Table no: 11
Factors influence you to stock a particular brand Factors
Frequency
Percentage
Quality
40
26.0
Product demand
26
26.0
Dealers margin
18
18.0
Price
12
12.0
Others
4
4
Total
100
100
Factors influence you to stock a particular brand
Quality Product demand Dealers Margin Price Others
34
Table no: 12 Frequency of purchase by dealers
Category
Number of respondents
Percentage
Alternately
32
32%
Weekly
14
14%
Fortnightly
6
6%
Monthly
48
48%
Total
100
100%
Chart No: 12
PERCENTAGE
ALTERNATELY WEEKLY FORTNIGHTLY MONTHLY
Inference:
It exhibits that most of the respondents about 48% were ordered alternatively. 32% were weekly, 14% were fortnightly and 6% were monthly
35
Table No:13 Kitex ltd has any sales promotional activity
Opinion
Number of respondents
Percentage
Yes
57
57%
No
43
43%
Total
100
100%
Chart no:13
sales promotional activity
NO 43%
YES 57%
Inference:
It reveals that majority of respondents about 57% said that Kitex ltd has sales promotional activity
36
Table no:14 Opinion about pricing of scoobee day bags
Category
Number of respondents
Percentage
Comparatively high
32
32%
Reasonable
64
64%
Comparatively low
4
4%
Total
100
100%
OPINION ABOUT PRICING ABOUT SCOO BEE DAY BAGS
COMPARITIVELY HIGH REASONABLE COMPARITIVELY LOW
Inference:
It show that 64% of the respondents opinions about pricing of scoobee day bags is reasonable and 32% of the respondents opinion is comparatively high and 4% of the respondents opinion about pricing of scoobee day bags is comparatively low.
37
Table No: 15 Complaints occurring in Kitex scoobee day bags
Category
Number of respondents
Percentage
No complaints
62
62%
Zip complaints
20
20%
Material complaints
7
7%
Stitching complaints
11
11%
Total
100
100%
Chart no: 15
COMPLAINTS OCCURING IN KITEX BAGS
NO COMPLAINTS ZIP COMPLAINTS MATERIAL COMPLAINTS STITCHING COMPLAINTS
Inference :
It is inferred that 62% of the respondents have no complaint about the product scoobee day bags, 20% have Zip complaints, 7% have material complaints, and 11% have stitching complaints
38
Table No:16 Any dissatisfaction regarding supply of scoobee day bags
Opinion
Number of respondents
Percentage
Yes
37
37%
No
63
63%
Total
100
100%
Chart No:16
DISSATISFACTION REGARDING PRODUCT
YES NO
Inference:
It exhibits that 63% of the respondents were satisfied with the supply of scoobee day bag and 37% of the respondents were dissatisfied with the supply of scoobee day bags.
39
Chi-square test To test whether there is any significant relations between years of experience and field of distribution of Kitex scoobeeday bags H0=There is no significant relationship between years of experience and field of distribution. Of Kitex scoobeeday bags H1=There is a significant relationship between years of experience and the field of distribution of Kitex scoobeeday bags What is your distribution
How long do you have Below 2 year experience with the Kitex scoobee day bag 2-4 year 4-6 year
Pearson Chi-Square
of Total
Wholesaler
Retailer
12
0
12
19
0
19
18
29
47
22
22
51
100
more than 6 year 0 Total
field
49
Value
Df
Asymp. Sig. (2sided)
55.557a
3
.000
Inference
To test whether there is any significant relations between years of experience and field of distribution a chi-square test was done. The cross table & Chi square value shows that p= .000 and which is less than.05.Therefore there is dependency. So there is significance difference between years of experience and field of distribution 40
To test whether there is any significant relationship between years of experience and factors influence to deal scoobee H0=There is no significant relationship between years of experience and factors influence to deal scoobee H1=There is a significant relationship years of experience and factors influence to deal scoobee How long do experience with scoobee day bag Below year
you the
have Kitex
2
The factor that Price 12 influence you to 0 deal with scoobee Quality day bags Availabil 0 ity
2-4 year
4-6 year
more than TOTAL 6 year
7
0
0
19
12
32
0
44
0
15
0
15
Brand image
0
0
0
17
17
Other
0
0
0
5
5
12
19
47
22
100
Total Chi-Square Tests
Pearson Chi-Square
Value
df
Asymp. Sig. (2-sided)
175.388a
12
.000
Inference There is a significant relationship years of experience and factors influence to deal scoobeeday chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is
41
significance difference between years of experience and factors influence to deal Experience with the Kitex scoobee day bag * Are you satisfied with the product line/ variety that Kitex provides
To test whether there is any significant relationship between years of experience and satisfied with variety of Kitex products H0=There is no significant relationship between years of experience and satisfied with variety of Kitex products H1=There is a significant relationship between years of experience and satisfied with variety of Kitex products Are you satisfied with the product line/ variety that Kitex provides
Satisfied
Highly Dissatisfie dissatisfie TOTAL d d
2 12
0
0
12
12
11
8
0
19
19
0
47
0
47
47
more than 6 0 year
13
2
22
22
68
7
2
100
Value
df
Asymp. Sig. (2sided)
106.140a
9
.000
Highly satisfied How long do you Below have experience year with the Kitex 2-4 year scoobee day bag 4-6 year
Total
Pearson Chi-Square
23
INFERENCE There is a significant relationship years of experience. And satisfied with variety of Kitex products, a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is
42
dependency. So there is significance difference between years of experience and satisfied with variety of Kitex products Experience with the Kitex scoobee day bag * what is your opinion regarding the credit facility of Kitex
To test whether there is any significant relations between years of experience and credit facility offered by Kitex H0=There is no significant relationship between years of experience and credit facility offered by Kitex H1=There is a significant relationship between years of experience and credit facility offered by Kitex What is your opinion regarding the credit facility of Kitex Very good
TOTAL
How long do Below 2 12 you have year experience with 4 the Kitex 2-4 year scoobee day bag 4-6 year 0 more than 0 6 year Total
Pearson Chi-Square
16
Good
Average
Poor
0
0
0
12
15
0
0
19
8
0
0
47
0
15
15
22
23
46
15
100
Value
df
Asymp. Sig. (2-sided)
181.046a
9
.000
INFERENCE There is a significant relationship years of experience and credit facility offered by Kitex. A chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So
43
there is significance difference between years of experience and credit facility offered by Kitex
Experience with the Kitex scoobee day bag * whether the credit facility is flexible
To test whether there is any significant relations between years of experience and credit facility of Kitex bags is flexible H0=There is no significant relationship between years of experience and credit facility of Kitex bags is flexible H1=There is a significant relationship between years of experience and credit facility of Kitex bags is flexible Whether the credit facility is flexible
How long do you have Below 2 year experience with the Kitex scoobee day bag 2-4 year 4-6 year more year
than
Total
Pearson Chi-Square
Yes
No
Total
12
0
12
19
0
19
31
16
47
22
22
38
100
6 0
62
Value
df
Asymp. Sig. (2-sided)
55.207a
3
.000
INFERENCE There is a significant relationship years of experience and credit facility offered by Kitex.A chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So
44
there is significance difference between years of experience and and credit facility is flexible
Experience with the Kitex scoobee day bag * Are the order executed on the time from Kitex
To test whether there is any significant relations between years of experience and their order executed on the time from Kitex H0=There is no significant relationship between years of experience and their order executed on the time from Kitex H1=There is a significant relationship between years of experience of and their order executed on the time from Kitex Are the order executed on the time from Kitex
How long do you have Below 2 year experience with the Kitex scoobee day bag 2-4 year 4-6 year more year
than
Total
Pearson Chi-Square
Yes
No
Total
12
0
12
19
0
19
47
0
47
14
22
14
100
6 8
86
Value
Df
Asymp. Sig. (2sided)
57.717a
3
.000
INFERENCE There is a significant relationship years of experience. And their order executed on the time from Kitex and satisfied with variety of Kitex products, a chi45
square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and and their order executed on the time from Kitex
To test whether there is any significant relations between years of experience and frequency of the visit of Kitex executives H0=There is no significant relationship between years of experience and frequency of the visit of Kitex executives H1=There is a significant relationship between years of experience frequency of the visit of Kitex executives
and
What is the frequency of the visit of Kitex executives Alternati ve Weekly How long do Below 2 12 you have year experience with 10 the Kitex 2-4 year scoobee day bag 4-6 year 0 more than 0 6 year Total
22
Value Pearson Chi-Square
Df
120.074a 9
Fortnight ly Monthly
TOTAL
0
0
0
12
9
0
0
19
3
34
34
47
0
22
22
22
12
10
56
100
Asymp. Sig. (2-sided) .000
INFERENCE There is a significant relationship years of experience. And frequency of the visit of Kitex executives and, a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is 46
dependency. So there is significance difference between years of experience and frequency of the visit of Kitex executives
To test whether there is any significant relations between years of experience and communication between distributors and Kitex H0=There is no significant relationship between years of experience and communication between distributors and Kitex H1=There is a significant relationship between years of experience communication between distributors and Kitex
and
What is your opinion regarding communication between you and Kitex
How long do you Below 2 year have experience with the Kitex scoobee 2-4 year day bag 4-6 year
Very good
Good
Average
TOTAL
12
0
0
12
14
0
0
19
0
0
0
47
12
12
22
62
12
100
more than 6 0 year Total
26
Chi-Square Tests
Pearson Chi-Square
Value
Df
Asymp. Sig. (2sided)
125.635a
6
.000
INFERENCE
There is a significant relationship years of experience. Communication between distributors and Kitex ,a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and communication between distributors and Kitex 47
Experience with the Kitex scoobee day bag * Rank the factors influence you to stock a particular brand
To test whether there is any significant relations between years of experience .and rank of the particular brand H0=There is no significant relationship between years of experience .and rank of the particular brand H1=There is a significant relationship between years of experience .and rank of the particular brand Rank the factors influence you to stock a particular brand Very good How long do Below 2 12 you have year experience with 19 the Kitex 2-4 year scoobee day bag 4-6 year 9 more than 0 6 year Total
Pearson Chi-Square
40
TOTAL
Good
Averag Poo Very e r poor
0
0
0
0
12
0
0
0
0
19
26
12
0
0
47
0
6
12
4
22
26
18
12
4
100
Value
Df
Asymp. Sig. (2-sided)
135.967a
12
.000
INFERENCE
48
There is a significant relationship years of experience and rank of the particular brand, a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and rank of the particular brand Experience with the Kitex scoobee day bag * what is the frequency of your purchase
To test whether there is any significant relations between years of experience and the frequency of their purchase H0=There is no significant relationship between years of experience and the frequency of their purchase H1=There is a significant relationship between years of experience and the frequency of their purchase What is the frequency of your purchase
Alternative
TOT Weekly Fortnightly Monthly AL
12
0
0
0
12
19
0
0
0
19
4-6 year
1
14
26
26
47
more than 6 year
0
0
22
22
22
32
14
6
48
100
How long do you Below have experience year with the Kitex 2-4 year scoobee day bag
2
Total
Pearson Chi-Square
Value
Df
Asymp. Sig. (2-sided)
115.293a
9
.000
49
INFERENCE There is a significant relationship years of experience. And frequency of their purchase, a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and frequency of their purchase To test whether there is any significant relations between years of experience and Kitex ltd have any sales promotional activity. H0=There is no significant relationship between years of experience and Kitex ltd have any sales promotional activity. H1=There is a significant relationship between years of experience .and Kitex ltd have any sales promotional activity. Does Kitex provide any promotional activities to you, if yes what are they
How long do you have Below 2 year experience with the Kitex scoobee day bag 2-4 year 4-6 year more year
than
Total
Pearson Chi-Square
Yes
No
Total
12
0
12
19
0
19
26
21
47
22
22
43
100
6 0
57
Value
Df
Asymp. Sig. (2-sided)
52.603a
3
.000
INFERENCE 50
There is a significant relationship years of experience. And ,a chi-square test was done. The cross table & Chi square value shows that there is p= .00and and Kitex ltd have any sales promotional activity. Which is less than .05.Therefor there is dependency? So there is significance difference between years of experience and
Kitex ltd has any sales promotional activity. Experience with the Kitex scoobeeday bags
scoobee day bag * Opinion about pricing of
To test whether there is any significant relations between years of experience and. Opinion about pricing of scoobee day bags H0=There is no significant relationship between years of experience and. Opinion about pricing of scoobee day bags H1=There is a significant relationship between years of experience and. Opinion about pricing of scoobee day bags Opinion about pricing of scoobee day bags Comparative Comparati ly high Reasonable vely low
Total
12
0
0
12
19
0
0
19
1
46
0
47
6 0
18
4
22
64
4
100
How long do you have Below 2 year experience with the Kitex scoobee day bag 2-4 year 4-6 year more year
than
Total
Pearson Chi-Square
32
Value
Df
Asymp. Sig. (2-sided)
108.480a
6
.000
INFERENCE
There is a significant relationship years of experience Opinion about pricing of scoobee day bags. And ,a chi-square test was done. The cross table & Chi square 51
value shows that there is p= .00and and Kitex ltd have any sales promotional activity. Which is less than .05.Therefor there is dependency? So there is significance difference between years of experience and Opinion about pricing of scoobee day bags
Experience with the Kitex scoobee day bag * Complaints occurring in Kitex scoobee day bags
To test whether there is any significant relations between years of experience of distributors and Complaints occurring in Kitex scoobee day bags H0=There is no significant relationship between years of experience of distributors and Complaints occurring in Kitex scoobee day bags H1=There is a significant relationship between years of experience of distributors and Complaints occurring in Kitex scoobee day bags Complaints occurring in Kitex scoobee day bags No Zip Material Stitching TOTAL complain complain complain complain ts ts ts ts How long do Below 2 12 you have year experience with 19 the Kitex 2-4 year scoobee day bag 4-6 year 31 more than 0 6 year Total
62
0
0
0
12
0
0
0
19
16
0
0
47
4
7
11
22
20
7
11
100
Chi-Square Tests
Pearson Chi-Square
Value
df
Asymp. Sig. (2-sided)
95.667a
9
.000
INFERENCE 52
There is a significant relationship years of experience. And Opinion about pricing of scoobee day bags, a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and Opinion about pricing of scoobee day bag Experience with the Kitex supply of scoobee day bags
scoobee day bag * any dissatisfaction regarding
To test whether there is any significant relations between years of experience and dissatisfaction regarding supply of scoobee day bags H0=There is no significant relationship between years of experience and dissatisfaction regarding supply of scoobee day bags H1=There is a significant relationship between years of experience of .and dissatisfaction regarding supply of scoobee day bags Any dissatisfaction regarding supply of scoobee day bags
How long do you have Below 2 year experience with the Kitex scoobee day bag 2-4 year 4-6 year more year
than
Total
Pearson Chi-Square
Yes
No
Total
12
0
12
19
0
19
6
41
47
6 0
22
22
63
100
37
Value
df
Asymp. Sig. (2-sided)
77.546a
3
.000
INFERENCE There is a significant relationship years of experience and dissatisfaction regarding supply of scoobee day bags ,a chi-square test was done. The cross table & Chi square 53
value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and dissatisfaction regarding supply of scoobee day bags
FINDINGS
1.The existing distribution of Kitex Scoo Bee Day Bags is from organization to
wholesalers ,then wholesalers to retailers and finally to customers.. They also have direct selling through company outlets. 2.From the survey conducted among
dealers, it was found that majority of the
dealers have 4 -6 years of experience with Kitex Scoo Bee Bags. 3.Majority of the respondents have the opinion that the Scoo Bee Day is the most
popular brand name in the school bag business. Other important brands are Diesel ,Reebok etc. 4.It is found that the factors that influence the dealers to stock Scoo Bee Day Bags
are quality of Product and brand image. 5.It is found that 68% of dealers are satisfied with the product line/variety that Scoo
Bee Day provides. 6.From the study it is found that 465 of the dealers have average opinion regarding
credit facility of Scoo Bee Day Bags.. 7.62% of the dealers feel that the credit facility is flexible. 8.865 of dealers are satisfied with the order executed on time from the company. 9.It is found that the 56% dealers explain that the frequency of the visit of Kitex
executives is monthly. 10.
Analysis shows out of 100% of respondents ,62% of them have good opinion
regarding communication between the dealer and Kitex. 11.
It is found that the important factors that influence the dealers to stock a
particular brand are product demand and quality. 12.
Majority of the dealers about 48% purchase products monthly.
54
13. It is found that majority of respondents about 57% said that Kitex ltd has sales promotional activity 14.Analysis shows ,64% of respondent‟s opinion about pricing of Scoo Bee Day Bags is reasonable. 15.Majority of the respondents about 62% have no complaints about the product Scoo Bee Day. 16.From the survey it is found that 63% of dealers are satisfied with the current distribution of Scoo Bee Day Bags. And also we found that some dealers are not satisfied because of the direct selling through company outlets with 10% discounts.
RECOMMENDATIONS
If flexible more profit margins through liberal schemes and incentives could be
adopted to make the dealers push the Kitex items more.
If the organization starts a new direct outlet it should make sure that
the
company‟s outlet should not affect the sale of dealers of that location.
Much stronger relation could be built with dealers by taking them into confidence
through consistent promotion of the product.
The company should frequently advertise the different types of bags launched in
every season and should also the exclusive dealers in each location.
Sales promotion scheme should be improved by introducing gift like crayons
,water bottles ,name slip etc. with bags.
The company must make sure that bags are delivered when there is an order placed
by dealer.
In order to cater seasonal demand ,the product should be launched two months
prior to school and college re-openings.
Kitex limited should introduce more Scoo Bee Day Bags of different colour ,size,
styles etc. and they should try to come up with much more variety of bags especially for the college students.
They should try to make some efficiency in the price fixati on of the products.
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Currently Scoo Bee Day Bags have markets in Kerala and Tamil Nadu, so they
should expand the market to other states also.
CONCLUSION A detailed study of Scoo Bee Day Bags has been conducted through a survey among the dealers randomly in Ernakulum district. The project titled is “A study on effectiveness of distribution channels of Scoo Bee Day Bags: a case study with reference to Kitex limited ,in Kerala State”.it was an attempt to study the various opinion of dealers of school bags in general and Scoo Bee Day bags in particular. The study helps to make some recommendations to improve the sale of Scoo Bee Day Bags and to improve the relationship between the dealers and the company. In respect of the study, I conclude that there is a considerable amount of market share for Scoo Bee Day ,dealers are impressed with the distribution of bags and they have good opinion about the quality of the bag. I hope that this study will help the company to know their dealer‟s preference of Scoo Bee bags and there by helps to adopt suitable strategies to satisfy both the dealers and the customers.
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