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INTRODUCTION

In the present day of competitive era there is no organisation which is an exception to marketing. One can call it as propaganda or an appeal it is an attempt to create an image in the minds of the ultimate consumer. It is infact a bunch of all such activities that converts the will of a consumer to effective demand. Marketing deals with identifying and meeting human and social needs. Marketing is typically seen as that task of creating, promoting and delivering goods and services to consumers and business. So marketing is one of that most important pillar of an organization. Marketing boasts a rich array of concepts and tools. Marketing channels are one of that important concept. Marketing channels to reach a target market, that marketer uses three kinds of marketing channels. channels, service channels. hey are communication channels, distribution

hat marketer use distribution channels to display sell or

deliver that physical product or services to that buyer or user. he organization uses direct and indirect distribution marketing. hey include

distributors, whole sellers, retailers and agents. !roduction is made to satisfy the needs of that customer. So it must reach to that ultimate customer. he way through which goods move from producer to that customers is known a "#$%&&'(S O) *IS +I,- IO&".

NEED FOR THE STUDY


M%*$-#O& S-/%+S %&* !O0'+ I&*-S +I'S ( * is one of the upcoming Sugar processing -nit in India and pioneer in %ndhra !radesh. #ontribution made by it to the economy and employment is phenomenal. Market penetration in terms of both sugar as well as other allied by products is impressive. here for study of #hannels of *istribution in such a successful organisation that too with allied by products through lights on efficient ways and means for *istribution of /oods. here is continuous product additions in the organisation. &ewly it started units to produce #austic Soda and %spirin. $ence this pro1ect "#$%&&'(S O) *IS +I,- IO&" serves as ,ed rock to know that various channels of marketing and distribution to any student whose study Master ,usiness Management.

OBJECTIVES OF THE SURVEY


% Survey in channels of distribution is undertaken for the following specific ob1ectives3 4 %5 o Survey the various channels of distribution Sugar and allied by products. ,5 #5 *5 '5 o assess various means incorporated for smooth distribution. o elicit the complications in the distribution channels o study the channel relationship of the organization o study the motivational techni6ues of he organization towards the sales department. )5 o examine the channel benefits provided by the organization.

METHODOLOGY
ABOUT RESEARCH METHODOLOGY;
he section deals with the research design used, sources of data collection, sampling method used and sampling size.

RESEARCH DESIGN :
% research design purely and simply the frame work 8or5 plan for a study that guides the collection and analysis of the data research design is nothing more than the frame works for the study so that. a5 b5 he study is related to the problem he study will employ economical procedure

+esearch design is typically classified. %ccording to the nature of the research ob1ective 8or5 type of research. It is important to remember that research design can serve many research ob1ectives and type of research. In this pro1ect the research design used4is descriptive research

Identify the problem *eveloping more precise formulation of a vaguely identified problem. 'stablishing, prioritizing regarding the potential significance of various
problems.

SOURCES OF DATA :
he researcher collected the primary information re6uired for this study a structured printed 6uestionnaire. extbooks and 1ournals are main part of the secondary sources.

a) Primary Data
he primary data is collected from the dealers.

) S!"#$%ary Data
he secondary data is being collected from the company sources etc.

SAMPLING PLAN:
Sam&'! T!"($i)*!:
he sample techni6ue is being carried out with the help of research tool, which is known and as 6uestionnaire. by the he respondents he are being of

interviewed

directly

personally

interviewer.

type

sampling is the convenience sampling techni6ue.

Sam&'! Pr#"!%*r!;
he pilot study is being conducted and necessary ad1ustments are being made in the 6uestionnaire. he procedure that is adopted like, fixing appointment the five with

the indenters and meeting them as shore and note their views, ideas, perception, attitudes etc.

Sam&'i$+ M!t(#%:
he researcher uses #onvenience sampling method.

Sam&'! Si,!:
he sample size is ;< respondents.

LIMITATIONS OF THE STUDY


.5 he Scope of study selected was vast and so I had to limit my analysis to certain main concepts. 25 he unit selected is a very large organisation involved in multiple products whose distribution models widely differs due the nature of by products. $ence lack of uni6ueness brings about the difficulty in comparison. 75 he time was also constraint, we are given a period of only 2 months for undergoing pro1ect raining and this short time is rather insufficient for perceiving the pros and cons of marketing channel.

INDUSTRY PROFILE
-ORLD -IDE SUGAR PRODUCING AREAS
Sugarcane is cultivated in all tropical and many sub4tropical countries. he ma1or

producers of sugarcane are India, ,razil, #uba, !uerto +ico and !hilippines. $awaii, ,angladesh> Indonesia, Mauritius, *ominican +epublic, ,ritish /uiana and %ustralia are other producers .

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INTERNATIONAL TRADE

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I$%ia4 with about 72 million hectares of land under sugarcane, is the largest producer and produces about 2<42:C of the total world output. In .@=@ India produced .:;.9 million metric tons of sugarcane. She produced ;.9 million metric tons of raw sugar in .@=@. here are two main areas producing sugarcane D the northern region and the southern region. &orthern region, producing more than =<C of the total output of the country, comprises the States of -.!., &orth ,ihar.

ORIGIN AND ITS GRO-TH IN INDIA3


he sugar Industry is the most advanced processing Industry in the %gricultural sector in India. In fact it is the second largest %gro based Industry in the country. )rom a modest beginning in .@7. when tariff protection was granted to the industry the Industry has made rapid strides since then. %gainst mere 2@ sugar mills in .@7<47. the number has been gone up to 9.; in 2<<<4<. with 2<< in co4operated sector, =: in public sector and rest in the private sector. he Industry has surpassed the target set for each in the various plan periods and out put of 2<< lakhs tons per annum have been targeted for the year 2<<:. Sugar Industry was initially concentrated in the subtropical states of -ttar !radesh and ,ihar, but since the second plan it has dispersed into the *eccan area and the southern states. %bout 7: million farmers 8including their female5 constitute above =C of the rural population are engaged in growing sugarcane. he industry absorbs a sizable portion of the cane crop and provides the farmer with resources to meet his commitment. 'ach Sugar factory

..

deals with thousands of cane farmers ranging from =<<< to ?<<< in the southern states and from 9<<<< to 9:<<< in &orthern states of India. Sugar cane being a highly perishables crop cannot be transported over long distances. $ence the factories have to be necessarily be set up with in economic distances. $aving a regard to these basic characteristics of the Industry, the concept of a minimum spatial distance between one factory to another factory has come to be accepted. he existence of traditional units, making /ur and Bandasari units en1oy freedom and fiscal advantage while the mills are controlled at sugar is sub1ect to various levies. %nother notable feature of the industry working is that it does not depend on external energy resources such as coal and firewood. It not only generates its own power but also pro1ects surplus power for supply to the grid in the near by rural areas minimizing transmission losses. If the entire potential is harnessed, the industry can easily provide an additional 2<<<M0 at a fairly reasonable cost. he capacity cost per Mega watt produced by sugar

mills, at ?<C efficiency would hardly be 9<Cof that a thermal stations. he ,y4products of the Industry, especially molasses and baggage, have opened up fresh areas of utilities. Molasses is used for production of alcohol and downstream chemicals. ,aggage, another import by4product, besides meeting the fuel re6uirement of Industry, offers also the potential to attain self4sufficiency in the production of paper and newsprint.

.2

SUGAR CANE PRODUCTION:


Sugarcane is the main raw material for sugar industry, accounting for almost ;<C of the cost production of sugar. Sugar Industry is an important agro4based Industry. Its fortunes largely depend up on the ade6uate availability of sugar cane. ,y the year 2<<2 the country may re6uires 7:< million tons sugar cane. Ar!a *$%!r 1*+ar "a$! (a1 !!$ i$"r!a1i$+ a1 i$%i"at!% !'#5. .@?<4?9 4 2;..< lakhs hectares .@?:4?@ 4 7...< lakhs hectares .@@<4@9 4 72.?< lakhs hectares .@@:4@@ 4 7;.?< lakhs hectares 2<<<4<9 4 7@.2< lakhs hectares 2<<94<? 4 9..;< lakhs hectares

THE YIELD FOR SUGAR CANE PER HECTARE HAS SHO-N THE FOLLO-ING TREND.
.@?74?9 4 :;.<< tons .@?=4?? 4 ;<.<< tons

.7

.@?@4@< 4 ;:.;< tons .@@<4@. 4 ;9.7< tons .@@@4<< 4 =<.9< tons 2<<<4<? E =7.:; tons *uring the last 9 decades, the yield for hectare increased at an annual rate of ..7<C . he average cane productivity in the sub E tropical region is low at :< tons !er hectare, while it is high at ?9 tons per hector in tropical regions. he strategy for increasing sugar cane production includes.

!roduction and distribution of 6uality seed cane. ,etter water management. Audi case and timely used of fertilizer application. raining of sugar cane production personal.

/rater participation of sugar cane factories in cane development.

STATE6-ISE SPREAD3 4
Sugar cane is grown widely in India in fifteen out of twenty seven states and in two out of the nine union territories. -ttar !radesh tops the list with @7 factories and .= lakhs hectors

.9

under sugar cane. Maharastra ranks next wit =@ factories and with 7. lakhs hectors under sugar cane. %ndhra !radesh ranks third in respect of number of factories but :th respect of area under sugar cane. % note worthy feature of the regional spread is, &orthern and 'astern states namely, %ssam, ,ihar, $aryana, !un1ab, +a1asthan, -ttar!adesh and 0est ,engal together accounted for ;?C of the area under sugar cane in the country, their share in the number of factories was 97C. he central and southern states, which accounted for 72C of the area, had :=C of the factories.

SUGAR E7PORTS3
India has emerged as the leading sugar producer and also one of the ma1or suppliers of the commodities in the world markets. hough the country fails to reap the ade6uate benefits. his is largely due to continued adhocism in the release of the export 6uotas in the internal markets. %s a result the country is treated as unreliable supplier, in the world market and over seas buyers are offering comparatively the lower prices. he government policy is to encourage exports from agro4based industries and time has come to fix a minimum export 6uota from sugar for every year so that permanent buyer 4 seller relations would be established and also better prices realized. Industry sources fell that at least a minimum 6uota of one million tons for the export of sugar could be released in the

.:

beginning of the season every year so that export commitment could be entered in to an appropriate time. Sugar exports face yet another year of loss by a large margin. (ast year on an export of :.:< lakhs tons inclusive of .<<<< tons to each the -S and '# under 6uota system, the loss of over +s .<< crores was incurred. ,ased on the price trend in (ondon sugar market, the unit price realization this year will suffer further erosion. Only recently the Indian sugar export corporation, which handles the export on behalf of the industry is stated to have been made at low as 29< dollars per ton. here are little prospects for any price increase in the world

market, thanks to excessive supply. %ll the same, the ma1or producers are keen to sell more in view of a foreign exchange constraint.

COMPETITION: 6
Manufacture of sugar consumes 77C of the sugar cane prosecution, while about the ;:C is consumed by the kandasari, and /ur producers and .2C go for chewing and seeding proposes. here are about ?<<< kandasari producers in the country. he competition of the kandasari producers is a real cause of worry to the sugar manufacturer because they procure more cane by paying higher prices and making prompt payment. -nder the plea that recovery of khandasari is lower than that of sugar, a section of the sugar Industry demands some restrictions on khandasari producers. ,ut it cannot be ignored a vast ma1ority of our rural masses consume khandasari. Moreover the kandasari producers ensure utilization of sugar cane where setting up a sugar factory is not feasible. he sugar Industry will have to live with competition of khandasari product.

.;

NE- SUGAR POLICY: 6


he policy envisages an additional 7< lakhs tones capacity in areas specified as Industrially back ward. (icensing of new sugar factories in the co4operative and public sectors would be allowed with an initial capacity of .=:< tone cane crush per day. ,ut this would be sub1ect to the condition that it would be expanded to 2,:<<4tone cane crush capacity per day with in : years of going in to production. he policy relaxed the distance criterion 2: km which could be .: km is special bases where can availability 1ustified it. %ccording to the .@@. policy all new licenses would be issued with the stipulation that the cane price would be payable on the basis of sucrose content of sugar cane. 0hile granting licenses for new units and expansion pro1ects, the additional capacity to be created up to the end of the eighth plan would be kept in view. (icenses for downstream industries would also be readily given. 0ith a view to improving profitability of operations, it has been decided that the 6uota for free sale sugar would be raised to a ;<C from ::C and that for levy sugar reduced to 9<C from 9:C. he issued price for sugar has also been increased by +s .9< a kg. 0ith a view to facilitating the fixation of higher retention prices for levy sugar that offset an increase in the cost of cane and conversion charges. Incentives have been provided in the shape of a higher free sales 6uota of ?<C in respect of output in Aanuary4%pril in excess of the 6uantum for the same period in the .@@.4@2season for encouraging late crushing operations free sale 6uota for may4Auly has been raised to =2C.

.=

he worst handicapped crippling the Industry is low level of productivity.

his is

attributed to inade6uate irrigation facilities, untimely supply of 6uality seeds etc., the erratic trend in the production of sugar is attributed to the fact that it is an agro4based Industry and its output fluctuates with the vagaries of the monsoons. Secondly, the output of the cane is influenced by a great extent by the price of sugar cane, industryFs main raw material that in4 term depends upon the competitive food crops on the hand and the cane prices fixed by the /ovt., on the other hand. ,esides the /overnment policy the output of the sugar is greatly influenced by the relationship between the cane prices and Sugar prices. )orm the production side, the sugar cane can be used for sugar, from the competition side, the substitution of sugar in the place of arises when the prices of sugar fail in relation to the price. -ttar !radesh and ,ihar together account for about ;<Cof the sugar production. %nalytical studies of the production have revealed the irrational nature of the regional pattern of the production. Since the sucrose content of sugar cane begins to deteriorate some after stalks have been cut, it is essential that a unit be located in close proximity to the sources of the raw material. #onse6uently, attempts were made to locate the new units in cane producing states. One factor, which is of crucial importance to the growth of the sugar Industry, is the yield of sugar cane per acre. !ercentage recover of sucrose is the second factor, which determines the production. In India, both the yield of sugar cane per acre and percentage recovery of sucrose is low. here is a possibility of doubling or even trebling the yield of sugar cane.

.?

In India, from hundred tones of cane ten tones of sugar is produced, but in case of the khandasari only = tones of sugar is derived. hus, there is a net loss to the country by the use of cane for khandasari and gur. he recovery content of Sugar is :C. ,ut sugar factor is

deprived the community by 2:C to 9<C of sucrose when they divert the cane re6uired by sugar mills. 0hile the /overnment fixes the price of sugar cane supplied to the factories, there is no price fixation for sugar cane used for sugar. %s a result of the policy of price fixation alone, sugar and khandasari is not done on a fair basis. It is therefore necessary that the price competition among sugar, and khandasari de avoided. he sugar policy of the /overnment has been seriously lacking a long4term perspective. #ontrols, decontrols, partial controls etc., have been used in the past in and adhoc manner. /overnment policies on prices, control of prices of sugar, dual pricing etc., have been designed and used for the benefit of the customers. he low yields sugar cane, short crushing season, and unsatisfactory location of the Industry in -.! and ,ihar and inade6uate supply create problems of production of sugar in India. ,esides, Indian sugar factories have low milling efficiency and recovery of sugar in sugar cane is very low. One reasons for this is the uneconomic character of the many of the sugar mills. )or that Indian sugar mills do not have sugar plantations of their own and hence, do not have control over the 6uantity and 6uality of the sugar cane supplied by the innumerable cane growers.

.@

SUGAR INDUSTRY IN INDIAN ECONOMY


he sugar Industry is the second largest agro based processing industry in India, having certain uni6ue features perishable raw material, namely sugar cane. he by4products of the Industry have opened up fresh areas of enterprise in diverse directions. Molasses is an important by4product, which is utilized for production of alcohol and downstream chemicals. ,agassee, another important by4product, a part from meeting the fuel re6uirements of the Industry, offers the potential to generate additional power for supply to grid. )urther, if offers tremendous potential to make the country self4 sufficient in its re6uirements of paper and new print. here are now 9.; sugar factories, 2<< in the co4operative sector, .9. in the private sector and =: in the public sector. he annual production capacity of these units is around @: lakhs tones. he six decades old history of the Industry has, however, been characterized by cyclical fluctuations in production due to lack of coherence between the pricing policies for cane and sugar. Sugar Industry holds the pride of place as an instrument of rural reconstruction and development. he extension of sugar cultivation and setting up new sugar factories since

independence have greatly contributed to the socio economic development of some rural tracts in the country with an investment of about +s .:<< crores, the sugar Industry provides employment to nearly 7.;. lakhs workers about 7: million farmers are engaged in cane cultivation in India.

2<

DEVELOPMENT: 6
In the beginning there was no progress in the sugar industry. !rotection was granted to this industry since .@72.since then, the industry is making worthwhile progress. 'fforts to establish a modern sugar industry however, dates back only to the beginning of the present centaury. (ittle head way would be made in the early years, as the varieties of cane grown did not posses good milling 6ualities and the yield per acre was low on account of which the cost of production of sugar was high. Sugar cane is grown in all parts of India. Sugar cane growing areas in the country may be broadly divided into two typical belts, the subtropical and tropical. he subtropical belt

mainly comprises the states of !un1ab, -ttar !radesh, ,ihar, Madhaya !radesh and 0est bengal etc., the tropical belt covers Maharastra, /u1arat, %.!, Berala. amilnaidu, Barnataka and

he 2 belts are characterized by marked differences in climate and agricultural

conditions. he subtropical area is a flat, plain soil with an elevation between 7<< G @<< feet. %bove the sea level, cane here is grown under on extreme climate. Irrigation facilities are not ade6uate, but the cane survives in the dry season because of the sub soil moisture. In the tropical areas sugar cane is grown in the delta areas of the east coast and the irrigated plains of *ecca plateau etc., the climate and soil differences between the tropical and sub4tropical areas have their effect not only on the average out put but also on 6uality of the cane. he protection gave the desired fill up with in about two years after the grant of

protection, the number of factories had risen from 2@ to ... and production from ..2. lakhs ton to 9.;. lakhs ton.

2.

%t the end of world4war4II there were .7; sugar factories and they produced @.:= lakhs tons of sugar. here after no further noticeable development took place till the beginning of the following era. In .@:<4:. through the number of factories remained at .7@, production of the sugar went up to ...79 lakh tons. More than half of these factories were located in the sub topical belt of -ttar !radesh and ,ihar. he progress of the Industry during the five4year plan has been phenomenal. he

number of factories went up from .7@ in .@:<4:. to 7;? in .@?=4??.the installed capacity of the industry increased from .;.;? lakhs tons in .@:<4:. to ..< lakhs tons in .@?=4??. )or .@??4?@, the output estimated to be even higher at .<2 lakhs tons, representing an increase of more than .< lakhs tons last year.

SUGAR INDUSTRY IN ANDHRAPRADESH


In %.! there are 79 sugar factories of which .? are under to #o4operative sector, ? are under public sector and ? under private sector. Sugar industry continues to play a dominant role in the economy of the state as sugar cane in one of the important commercial crops. he installed capacity of the sugar factories in the state is :9<<< tones of cane crushing per day 8 .#.*5. his includes he capacity of 27,<<< .#.* in .? co4operative mills .<,=<< .#.* in public sector units and 2<,2:< .#.* in = private units. *uring .@@74@9 season the sugar factories in the state crushed :; lakhs tons of sugar cane, at an average recovery of @.79C about :.2? lakhs tons of sugar was produced by this factories. he co4operative sugar mills alone crushed 2:.@=

22

lakhs tons of sugar cane and produced 2.2 lakh tons. %ndhra !radesh occupies 9th place in respect of sugar cane growing. his state is one of largest sugarcane growing state in the

country. Sugar cane is cultivated in the districts of Srikakulam, Hisakhapatnam, './, 0./, Brishna, &izamabad, Medak, Badapa, #hittor, /untur. he biggest in %sia 7 more units were set up under the same management. hese 7 units used to pay more remunerative price to can growers after compare to other. ,ecause of those remuneration price, farmers had registered too much land under cultivation and this was 2,9<,<<< acres. %gainst this previous year acre of 7,=@,<<<. in our country total land under sugar cane on :th belong to %.! and this occupies @th place in the country. %verage cane yield per acre in India is 2< tons and %.! 7< tons. he crushing capacity of all the %.! is 7< tons. he crushing capacity of all the sugar mills in the state is := lakhs tons. !rivate mills could utilize =<C of crushing capacity where as the other mills could 1ust manage.

SUGAR FACTORIES IN ANDHRA PRADESH34


he sugar Industries in %.! has sugar units under 7 different sectors. hey are3 !ublic sector !rivate sector #o4operative sector

27

)rom the above sectors it is clear the Sugar Industry in %.! has good base.

he

function of factories in public sector has achieved a capacity. -tilization ;?.7= and only. hese factories on the private sector could utilize the productivity up to the extend of :7.;<C.

SUGAR PRODUCTION IN EAST GODAVARI


,efore going to know the history and date of S+I S-+H%+%I% S-/%+ (IMI '* it is essential to know the Industrial development in './ *ist., %.! and the helpful for the development. he district is suited in the fur tail deltas of the river /odavari that is supposed to the biggest in South India. he main occupation people is in the %griculture as there are number of fur tail lands. %s an effect of this district is economically forward and the population too is economically richer when compared with the people of other district in %.! state. he people of area are very much interested in this area. he land has go favorable

conditions for its development. %s this is the situation the minds of the people were dragged to Industrial field, which has filled with difficulties during ,ritish regime. Since the dawn of Indian Independence Industrialization was started has a large scale thought out the country. he minds of some pretty land lords and 1amindars were drawn towards Industries as the district of './ is surrounded by fur tail land of the deltas of river /odavari, which rise to commercial crops like sugar cane.

29

INDUSTRY STRUCTURE AND DEVELOPMENT


*uring the sugar season 2<<942<<: the total production of sugar in India was .?:.<< lakh M. s. the glut in the sugar market had an adverse effect on sugar prices and the free sale sugar price has fallen to a rather low level. his was due to off4loading of sugar stock by some of the sugar mills based on the court orders without obtaining release orders from the /overnment. $owever, the government has taken certain corrective measures by making necessary amendment in the 'ssential commodities %ct. his has had its intended effect and the price of free4sale sugar is gradually increasing. he central /overnment has decided to create a buffer stock of 2< lakh tones of sugar for a period of one year. he #entral /overnment has also notified to reimburse the internal transportation cost and freight charges on export shipment of sugar up to an extent of +s.7:<J4 per ton to encourage export of sugar.

OPPORTUNITIES AND THREATS


0hile the policy of the government with respect to mixing of ethanol with petrol and creation of sugar buffer stock up to 2< lakh tons will be encouraging factors to the industry, over production of sugar and resultant glut in the market pose a threat to the industry. he action of the /overnment with respect to implementation of release mechanism of sugar stock may help in firming up of sugar prices. )or the 2<<742<<9 crushing seasonal the availability of cane is expected to be about :.:< lakh tons. 0ith the commissioning of the new ,ottling

2:

!lant at Besavaram and implementation of 'thanol !lant Shortly, the company expects to generate additional revenue.

SEGMENT -ISE AND PRODUCT -ISE PERFORMANCE


Segment wise results with respect to sugar and rectified spirit is given for the last seven years. I'%+ S-/%+#%&' #+-S$I&/ 8(akhs tones5 2<<.42<<2 2<<242<<7 2<<742<<9 2<<942<<: 2<<:42<<; 2<<;42<<= 2<<=42<<? 9.9? :.2. :.<= :.?9 ;.<7 ;..2 :.=. ...2? ...;= ...2? ...<. ...9: +'#OH'+I S-/%+ !+O*-# IO& 8(akhs 6uintals5 :.<. :.:2 :.=2 ;.?2 ;.?< ;.=9 ;.:9 +'# I)I'* S!I+I 8lakhs blFs5 2..;9 ::..9 :7.<. ;:.:@ =9.79 ;2.?; ;7.<;

MANUFACTURING PROCESS OF SUGAR CANE MILLING OR JUICE EXTRACTION3

2;

his is the first step of liberating the imprisoned sugar 1uices in the cells of the plant by the process of laceration. he cane, after being sliced by the cane shredders, enter the first he milling section

mill by an automatic feeder, each factory consist of a train of : mills.

constitutes the largest and heaviest mechanical installation in the whole plant, water is added to the cane during the crushing process, in order to extract more 1uice. his water is called ambition water, which is kept a minimum in order to minimize the subse6uent incorporation process. %s the efficiency of the milling process determines the 6uantity of 1uice extracted, on sixth of total rolls have been respelled in cry crushing period. ?:C. he whole mill is known as a K %&*'ML. control 8technical5 of the chief Mechanical engineer. he operation of this process is under he baggage is sent to a big measuring he mill extracts now stands at

tank where is weighed and is taken note of. )rom this stage chemical department starts functioning as follows.

CLARIFICATION:
his is a process of separating impurities from the 1uice. his purification is re6uired

in order to reduce the content of non4sucrose impurities which otherwise interfere with the subse6uent crystallization. Sulfur dioxide gas SO2 is passed 8lime sulfur5 into the 1uice #larification occurs while the 1uice is hot. ,y giving =< degrees # heat first and rehearing .<7 degrees # the combined action of heat and chemicals list to coagulate and precipitate a part of the impurities of the 1uice. 1uice in large clarifying tanks and settlers. hese muds or scums are separated from clear

he mud contains considerable 1uice which pass

2=

expressed in filter press for which door divers and door clarifies, the highly scientific machines are used.

CONCENTRATION AND GRANULATION3


his consists the removal of water from the clarified 1uice by evaporation and reduction of it to thick syrup containing granulated sucrose. his syrup also called as mother

li6uor. It may be regarded as a ma1or operation and is conducted by the application of heat to the 1uice in multiple Eeffect evaporators. he thick syrup is then sent to vacuum pans where

the sugar is boiled out in the form of crystals. !ans are the regulators that help in processing the desired size and colour of sugar crystals.

CRYSTALLIZATION
his is the process of separation of sugar crystals from the admired molassesFs, by the treatment in centrifugal machines. he condensed syrup, discharged from the vacuum pans, o separate the molasses from the sugar

consists of magma of crystals with some molasses.

crystals to a maximum amount high Espeed centrifugal machines were introduced. If the sugar content in the molasses is more, the molasses is again sent to vacuum pans for further crystallization, lastly as the sugar discharged by the centrifugal, contains a high percentage of moisture, the dampness is removed by passing 1oy air through a drum, in a direction counter to the travel of sugar. In order to preserve the whiteness of the sugar and render it immune against deterioration. %fter being sieved the sugar is bagged by manual labor and stored in big wheel maintained at godown 0hile close chemical control is re6uired throughout all the

2?

manufacturing process, laboratory chemists analyze cane 1uice taken from different processes to perceive clearly the chemical changes that the 1uice undergoes alter each process in the factory.

GRADES OF SUGAR:
he sugar, generally, is manufactured in the grades of '2@, *2@, S7<, M7<,l #2? or #2@. he letter donates the size of the crystals and the number denotes the colour of crystal. he factory now stands at an average

he production is S.S.S. is market at present.

production 7:,?2. tones of sugar with an average recovery of .<.@.C on the year .@@:4@;. In the year 2<<.4<2 record production and a recover of ...;=C. he only raw material, sugarcane is available during particular season. Special staff is employed for accounting sugar cane purchases and payment. purchased at rate. he raw material sugar cane is

he cane is the yard by lorries, tractors and trailers of carts in unloaded on he cane trucks recalibrate and weighted on electronic

to the cane trucks move on rails. weight bridge.

he particulars of weight along with other particulars like name of the suppliers, variety of cane etc., as re6uired for statutory purpose and also for accounting and information purpose is recorded by *ata !rocessing machines. )rom this basic data the '.*.! department processes the cane supplierFs ledger and other related accounts. &o separate stock registers are maintained for the raw material and the cane is not stored.

2@

he sugar cane is taken at the entrance gate and it weighed by the electronic weighting machines. %fter this process the sugar cane cut into pieces i.e. it went for crushing. crushed capacity of S.S.S.( is 7,:<< tones per day. he

he crushed material in the year .@@74@9

was 7,;.,2:< tones and the output i.e., sugar produced by the factory was 9,<<,=7< 6uintals with an recovery of ...<;. In the year .@@94@: the sugar cane taken 7,?;,92: tones and the output was 9,7.,2;: 6uintals of sugar with an effective recovery of ...7 which is the highlight and got state second in recovery. In the year 2<<.4<2 the factory produced a output of ;.?2 lakh 6uintals of sugar with an input of :.?9 lakh tones of sugar cane and ...;= was the recovery in that particular year.

BYE6PRODUCTS Bagasse
his is also termed as K,agasseL. his is a waste resulted in the cane milling and is sent out through bagasse carrier. It composes of cane fiber, cellulose and moisture about 2= to 7<.:< tones of bagasse id produced per every .<< tones of cane crushed. !ercentage of fiber content of the amount of bagasse produced. %ll the bagasse has been utilized as fuel to steam boilers and also it is used in the paper industry for papermaking and it is also used for cattle fields. he fuel of bagasse is 2.: tones to a tone of coal. ..2: tones to a tone of firewood and : tones to a tone of furnace oil.

FILTER PRESS CAKE

7<

his is waster residue sent out in the process of clarification, in the ration of 2.: tons per every .<< tons of cane crushed. %bout @:<<4.<:<< tons of this sulphitation, filter press mud is utilized in the farms in the ratio of two tons per acre. he is the best source of organic matter, which increases the 'M -+' of the soils that can sustain good growth of crops.

M#'a11!1
his is syrup, from which is not possible of uneconomic to crystallize out any more sucrose, is sent out in the process of centrifuging, in the ratio of .9<9.=< tons per every .<< tons of cane crushed, sucrose content of cane, the strength of evaporation and crystallization are the three chief determinants of the total molasses sent out. Molasses is a complicated solution of salts, organic matter, sucrose and invert in water. hrough it is used in multiple way eg., as a fertilizer, as a fuel to power generators etc., it is used only in the manufacture of power alcohol. he S.S.S. it engaged with industrial alcohol plant attached to the factory at #helluru is taking this molasses.

COMPANY PROFILE

7.

PROFILE OF MADHUCON SUGAR AND PO-ER INDUSTRY LIMITED


*uring the year 2<<.4<2 Madhucon Sugars (imited was incorporated to purchase and take over the sick sugar mill namely $' !(%I+ #O4O!'+% IH' S-/%+S (IMI '*

'stablished in .@?2. %t the time of taking over, the company is suffering with losses. %fter taken over by Madhucon Sugars (imited the company has earned net profit year of operation itself. (ater the companyNs name was changed as "M%*$-#O& S-/%+ %&* !O0'+ I&*-S +I'S (IMI '*". hese company is one of the company in group companies of

Madhucon !ro1ects (imited which is having diversified activities of construction of infrastructure pro1ect like +oads, ,ridges, #anals, ,uildings, )lyovers, /ranites, Sugar and allied products. M%*$-#O& /+O-! is working on pro1ect in various core sectors of nation importance like highways. Irrigation producing the construction materials, power houses, all of which, no need to say are so essential now for the round infrastructure development of the nation.

MADHUCON GROUP CONSISTS FOLLO-ING COMPANIES

72

.. M%*$-#O& !+OA'# S ( * 2. M%*$-#O& /+%&I 'S ( * 7. M%*$-#O& '&/I&''+S ( * 9. M%*$-#O& ,I&%!-+I AH :. M,& %&#$O+'* '%+ $ ( * ;. H%+%(%BS$MI /+%&I 'S !H ( * =. M%*$-#O& S-/%+ %&* !O0'+ I&*-S +I'S ( *

ABOUT

MADHUCON

SUGAR

AND

PO-ER

AND

PO-ER

INDUSTRIES LIMITED
Madhucon Sugar and power Industries (imited was +egistered on : th &ov.2<<2 which was purchased under privatization scheme with a capacity of .2:< tonnes per day. he factory was located at +a1eswarapuram village in Bhammam *istrict. he factory consist of 89: ;i''a+!1 situated in radius of 7: kms. %nd the company has <<:: "a$! 3arm!r1/ Madhucon Sugar and power Industries is one of the group companies of Madhucon !ro1ects (imited which is having diversified activities of construction of infrastructure pro1ects like +oads, ,ridges, #anals, ,uilding, )lyovers, /ranites, Sugar and allied !roducts. he

group turnover is around ;<< crores and earning reasonable profits. he present market price of Madhucon !ro1ects (imited share of +s.2.<< each is 6uoting around +s, 7<<.<<.

77

&%M'
Sri &.Secthaiah Sri . & . Brishnaiah Sri .Henugopal Sri.B.Srinivasa +ao

*'SI/&% IO&
#hairman 'xecutive *irector *irector *irector

*I&
<<<22?7@ <<<22==? <<<=<;?? <<<22::?

BOARD OF DIRECTORS OF THE COMPANY PERFORMANCE OF THE MADHUCON SUGAR PVT LTD

*escription Sales &et !rofit +eserves surplus /ross ,lock &et ,lock Share capital

2<<94<: @..@? <.;; and <.;; @@;.@2 @9=.:@ 2=...2

2<<:4<; .7@..<9 79.9< 7=.22 .<:9.:@ ?@:.92 2=...2

2<<;4<= .:27.=: ==.9@ ....;. .727.2< .<:<.<2 2=...2

2<<=4<? 72:9.@? 29<.== 79;.7< .;<;.=. ..=?.99 2=...2

79

he company has appointed renowned consultants MJs. Madhucon #onstancy services (imited, !une )or expansion and Installation of sugar and *istillery and MJs. %vant4 /rade 'ngineers and consultants !vt. (td., #hennai for #o4gen, plant. he company has already

finalized the *!+s and is in the process of finalization of detailed drawings for the e6uipment and placement of orders. he company has already placed orders for ,oiler and steam urbines #o4gen, plant. o part finance the above pro1ects the company is proposing to apply for term loans from the banks and the financial institutions. he loans are proposed to repay with in ? years with a moratorium period for 2.: years from the data of .st disbursement of the lone. he company is in existence for the last 9 years and earned

reasonable profits the data of its inception of taking over from #o4operative Sugars (td. ..

he palair

7:

PRODUCTION SCENARIO
!roduct 3 Sugar

,i4products3 ,aggesse 3 Molasses 3 )ilter cake O ,aggese is used as fire wood to run ,oilers O Molasses is used in the manufacturing of *istillers like alcohol and spirits, 'thanol etc., O )ilter cake is used as manure for the agriculture.

SUGAR PRODUCTION DETAILS OF MADHUCON SUGARS AND PO-ER PROJECTS INDUSTRIES LTD: !'+ I#-(%+S
#%&' 8M. 5 S-/%+ S-/%+ 8P (S5 8P (S5 S O#B O) S-/%+ .,2;,@<2 =2,;<. .,7.,92<.79 .,<.,9:9

2<<94<:

2<<:4<;
;:,97;.;@; ;<,77< .,.9,;7.

2<<;4<=
.:.,?:;.:; .,99,92: ??,=9@

2<<=4<?
.=@,@:;.@9 . ,:;,=7= .,?7,.=.

#+-S$'* .,9<,9.. !+O*-#'* .,7.,297 SO(* 9,79.

8P (S5 OBJECTIVES OF THE COMPANY

7;

Manufacturing of white crystal sugar o promote the agriculturists in that particular area o utilize the harvest of sugar cane in that area improving,the cultivation methods through giving better support to the formers

Issuing loans to members for productive and other similes purposes o encourage self help, thrift and co4operations among members

-ELFARE MEASURES TO THE EMPLOYEES:


he following welfare measures are be provided by Madhucon Sugars for the employees, Q!roviding 6uarters8as per their category5 o Shoes for the purpose of safety measures o One pair of uniform for every year for every employ If any employees met with the accident the management immediately give the first aid and take the patient to khammam /ovt. $ead Puarters hospitals G provide two persons to assist them for during the hospitalization. %s per the order of the labor department i.e. assists commissioner of labor G deputy commissioner we have to pay the compensation to the person who met the accident

7=

he factory management has been sanctioned towers the future expenses an amount of :<<J4 to the person who died artificially or accidentally o heir cases have been recommended to the labor department for the compensation as per the factory act o he management every year has sanction productivity linked incentive 8bonus5 to employee for every year depending upon the percentage of the recovery.

he

labor

department

has

been introduced the filarial fund to the employee and

worker of the factory.

PRODUCTION PROCESS
In the beginning of production 4process sugar canes are loaded into a container, cane carrier them into cane kicker. It helps to maintain a uniform level of sugar canes, cane cutters cut the whole cane in to small pieces and even cut the layer of the cut cane hose small pieces are send into crusher by crushing that small pieces of sugar cane more 1uice. 0ill be extract the mill extract the more 1uice which goes to process of manufacturing of sugar. here will be 9 mills in each mill there are three values. he prepared cane to . st mill and there it will be crushed. he product comes form discharge rollers of . st mill is called primary 1uice, like wise the primary baggage passes through remaining 7 mills either hot water or cold water both are used as maceration water which is used at the 9 th mill for extraction of more 1uice. Haccum pans

7?

#ondensation plant 0ater cooling system #ooling curing and drying Sugar dryers /ardens Molasses weighment Stream power plant8,oilers5 #himney Miscellaneous items Sugar elevators *iesel generation )inal molasses Storage tank ,aggage elevator

CONTENTS =OR) RA- MATERIALS OF SUGAR


S*+ar "a$! a$% C(!mi"a'

7@

LIST OF CHEMICALS -HICH INVOLVES IN THE PRODUCTION PROCESS


,urnt lime Sulfur 8so25 Sodium exhamata phosphate Hiscosity reducer %nti sealant *esealant $ydrogen !eroxide

LIST OF MACHINERY -HICH INVOLVES IN THE PRODUCTION PROCESS


#ane carrier #ane kicker #ane levelers #rusher Mills Auice wiggling scale Auice heaters Auice sulphitation tanks Sulfur burner )ilter presser #arbonation plant 'vaporation plant Syrup treatment plant

9<

9.

MADHUCON SUGARS AND PO-ER INDUSTRIES LIMITED SUGAR ORGANISATION CHART


E0!"*ti;! Dir!"t#r G!$!ra' Ma$a+!r Dy/G!$!ra' Ma$a+!r>A11t/G!$!ra' Ma$a+!r

*y./en Manager )G%

Sr.Manager !G%

%/M 8#ane5

Sr.Manager 'ng

Sr.Manager !rocess

%sst..Manager Marketing

Manager !urchase

%sst..Manager Stores

'*!

Manager 8 #ane5

Mgr !rocess

%sst Marketing

%sst !urchase

Stores %sst

#omputer Operator

%sst mgr (iaison

!.OJ% O *y. Manager 8#ane5

Manager %ccounts /eneral Manager %ccounts Sugar

*y. Mgr 'ng

*y. Mgr 'lect

9.

THEORETICAL FRAME -OR. OF CHANNELS OF DISTRIBUTION


INTRODUCTION
Marketing has been defined in various ways. 0e like the following definition of marketing. his definition of marketing rests on the following core concepts, needs, wants and demands, products value, cost and satisfaction, exchange transaction and relationships, Markets, and marketing and marketers. Marketing thinking starts with the fact of human needs and wants, people need food, air, water, clothing and shelter desire for recreation, education and other services. hey have strong preference for particular versions and brands of basic goods and services.

MAR.ETS
T(! "#$"!&t #3 !0"(a$+! '!a%1 t# t(! "#$"!&t #3 a mar?!t/ % market consists of all the potential customers sharing a particular need or wants who might be willing and able to engage in exchange to satisfy that need or want. hus the size of the market depends upon the number of persons who exhibit the have resources that interest others, and are willing to offer these resources in exchange for what they want.

92

CHANNELS OF DISTRIBUTION
Organisation, 6uite simply defined, is the process of assigning responsibilities and activities to the various members of the work group in accordance with the plans designed to achieve the ob1ectives established. Its aim is to produce the mos efficient and effective effort on the part of both the individual group members and the group as a whole toward the common goals. In the planning process, ob1ectives have been established, resources have been allocated, and an action program for achieving these ob1ectives with the resources available has been developed. he organisation process begins when we start to translate action programmes into specific responsibilities assigned to individuals. Since, in the planning process, ob1ectives have been established, the action to be taken broadly defined, and price tags and timetables attached to those actions, organization in its simplest from consists in assigning the ob1ectives, actions, price tags, and timetables to the appropriate individuals and securing their understanding and acceptance )O+ M%+B' I&/ its products to relevant segments of consumers, an organization has to communicate with these consumers. he channel of communication

may be impersonal 8e.g., advertisements5 or personal 8e.g. Salesmen5. o handle personal communications with consumers, most organization employ a sales force. he primary

responsibility of the sales force is to promote the organizationNs products, but it may also be used to distribute the product, service the product and gather market intelligence. Sales management is concerned with the planning, direction and control of sales forceNs activities. Sales management is an important activity in the Indian marketing system where commercial firms as well as non4commercial organizations employ substantial field forces

97

to promote and distribute products 8or services5R to service and assist prospects, clients, and middlemenR to report on consumer preferences and competitive activity, etc. 0ith the increasing economic and social pressure to enter rural markets, he importance of sales management is increasingR it is not possible for manufacturers to rely entirely on the trade for developing the rural markets.

DUTIES OF SALES MANAGER


he sales manager holds a uni6ue position in the sales organisation. $e plans, organises, directs, staffs and coordinates the whole of the sales organisation. here are several connotations of the sales manager like sales executive, sales director, marketing manager, marketing executive, etc. $e is the person who steers the wheels of sales organisation. $is status and power depends on the size of the organisation in his charge. In small firms the general manager or managing director performs the duties of the sales manager. ,ut in big manufacturing firms there usually a sales manger. $ere the sales manager. $ere the sales manager is appointed by the top management and he is responsible to them. In giant sized companies for some territories andJor products sales managers are appointed. 0hatever the position of the sales manager, he is the guiding and driving force of the sales organization

FUNDAMENTALS OF SUCCESSFUL SELLING


In every game or competitive sport there are certain principles which have to be learnt and practiced. )or example, a professional boxer has to spend a number of hours each day on exercises, like skipping, running, punchbag4practice, etc. to maintain his health and improve his skill. 'ven after a professional boxer attains the championship

99

standard, he still has to go through his training programme regularly as before and is assisted by his coach during and after every practice about so that errors not be repeated. here is an analogy between competitive sports and salesmanship. %s in competitive sports so in salesmanship there are certain principles which have to be mastered. Some fundamentals in selling must be learnt and mastered for best results. he new and

inexperienced salesman, like the boxer, must first study and learn what the fundamentals are and try to put them in practice. %n intelligent salesman combines the study and actual practice of these fundamentals by intelligent analysis and improvement of defects. In course of time, the use of the important fundamentals becomes a habit for the salesman

SALES FORECASTING
In the field of production and manufacture and manufacturing organisations the most burning problem of today is not the problem of the production but that of sale. It attaches much importance for an enterprise to forecast the sales so that the production is neither more nor less to that of demand made by customers. Sales forecasting has assumed dynamic importance mainly in the industries where the problem of large scale production, and mass distribution have to be encountered. o know what a business will do, we must know its future sales, which means that we must have forecast, without them, both short and long range planning rests on foundation much less substantial than sand

SELECTION OF SALES PERSONS


Selection involves three basic aspects, namely, consideration of4 8.5 the number of salesman re6uired 825 the 6ualities re6uired in the salesman 875 the selection procedure to be adopted

9:

TRAINING
he old belief, that still persists in certain 6uarters, is that the ability to get along with people and physical personality are all important, and that the selling ability is something intangible which a person may or may not have. )ortunately, progresive sales executives realise that, provided basic characteristics are present, salesmen are not born but made. his has resulted in the application of scientific management techni6ues in

developing salesmen, the emphasis being placed on 8.5 ade6uate selection procedures, 825 appropriate training and 875 sufficient supervision. Selection is important even from the training aspect as it would be a waste of good money to train bad material. he training aspect is thus connected with recruiting and selecting salesmen.

SELLING PROCESS
he 1!''i$+ &r#"!11 is a set of activities undertaken to successfully obtain an order and begin building long4term customer relations. hus it is a separate, but related, stages forming the activity of personal sellingR these include preapproach, approach, need identification, presentation, handling ob1ections, closing the sale and post4sale follow4up.

St!&1 i$ 1!''i$+ &r#"!11


.. !rospecting 2. #all planning 7. he visit E preliminaries 9. !resentation :. rial close ;. (istening to the ob1ections

9;

=. Ob1ection handling ?. rial close @. #lose .<. )ollow4up and service

SELLING TYPES
ypes of selling Installment sale !art charge sale #harge4take4sale #ash on delivery sale #ash take sale #harge on delivery sale

SELLING STRATEGIES
In todayNs economy, big and small businesses are seeking every opportunity to win sales through competitive advantages. Smart owners of small business know a sales strategy can create a competitive advantage. Selling consists of two main functions3 tactics and strategy. Sales strategy is the planning of sales activities3 methods of reaching clients, competitive differences and resources available. selling3 prospecting, sales process, and follow4up actics involves the day4to4day

COMPETITIVE ADVANTAGES OF STRATEGIC SALES PLANNING

Increased closing ratio by knowing clients hot buttons

9=

Improved client loyalty by understanding needs Shorten the sales cycle with outside recommendations Outsell competitors by offering the best solution

% sales distribution channel consist of the set of people and firms involved in the flow of title to product as it moves from producer to ultimate consumer or Industrial uses. % channel of distribution always includes both the producer and the final customer for the product is itFs present from as well as any middlemen. Selling channels are sets of interdependent organizations involved in the process of marketing a product or services available for use or consumption. Most producers donFt sell their goods directly to the final users. ,etween them stands a set of intermediaries performing a variety of functions. hese intermediaries constitute a marketing channel. Some intermediaries 4 such as wholesalers and retailers, buyers take title to, and resell the merchandise they are called merchants, others E brokers, manufacturerFs representatives. Sales agent search for customers and many negotiate on the producerFs behalf but do not take title to the goods, they are called agents, still others transportation companies, independent warehouses, banks, advertising agencies E assist in the distribution process but neither take title to goods not negotiate purchases or sales, they are called facilitators. ,esides producer, middlemen and final customer, other institutions and the distributing process.

9?

*istribution #hannel is a flow of the final product from producer to ultimate consumer or Industrial uses. It showFs how the product reaches the customerJconsumer from the manufacturing unit. Most producers donFt sell their goods directly to the final users. ,etween them stands a set of intermediaries performing a variety of functions. hese intermediaries constitute a marketing channel. here are mainly two types of *istribution #hannel.

Sa'!1 @ Di1tri *ti#$ C(a$$!'

Dir!"t C(a$$!'

I$%ir!"t C(a$$!'

DESIGNING OF SALES @ DISTRIBUTION CHANNELS A/ D!'i$!ati$+ t(! r#'! #3 %i1tri *ti#$:


% channel strategy should be designed with in the context of an entire marketing mix. )irst the firms, marketing ob1ectives are reviewed. &ext the roles assigned to

product, price, and promotion owe delineated each eliminate may have a district role, or two elements may share an assignment.

9@

8/ S!'!"ti$+ t(! ty&! #3 "(a$$!':


Once distributionFs role in the overall marketing program has been agreed on the most suitable type of channel for the companyFs se6uence, a firm needs to decide whether middlemen will be used in itFs channel and it so, which types of middlemen.

B/ D!t!rmi$i$+ I$t!$1ity #3 %i1tri *ti#$:


he next decision relate to intensity to distribution, or the number of middlemen. -sed at the wholesale and retail in a particular territory. he target markets buying

behavior and the products nature have a direct bearing on the decision.

C/ C(##1i$+ 1&!"i3i" "(a$$!' m!m !r1:


he last decision is the selection of specific firmFs or SbrandsF middlemen to distribute the product for each type of institution there are usually numerous specific companies from which to choose.

:<

MAJOR CHANNELS OF DISTRIBUTION


DISTRIBUTION OF CONSUMER GOODS:
*istribution #hannel may broadly classified into different categories as follows3

PRODUCER

CONSUMER

he shortest, simplest distribution channels for consumer goods involve middlemen. he producer may sell from door to door or by mail. )or instance, South 0estern #ompany uses college students to market its books know as to house basis.

PRODUCER

RETAILER

CONSUMER

Many large retailers buy directly from manufacturers and %gricultural producers. PRODUCER

-HOLESALER

RETAILER

CONSUMER
If there is a 9 traditional channel for consumer goods, this is, small retailers and manufactures by the thousand final this channel the any economically feasible choice.

PRODUCER

AGENT

-HOLESALER

RETAILER

:.

Instead of using wholesalers many producers prefer to use agent middlemen to reach the retail market especially large4scale retailers. PRODUCER AGENT -HOLESALER

RETAILER

CONSUMER

o reach small retailers, the producers often use agent middlemen who in turn call on wholesalers that sell to small stores.

OBJECTIVES OF CHANNELS OF DISTRIBUTION 3


I. he nature and importance of middlemen.

II. 0hat is a distribution channel is III. Multiple channels of distribution IH. )actors effecting the selection of a channel H. he choice of individual middlemen.

:2

CONSUMER MAR.ETING CHANNELS


9 L!;!' A L!;!' 8 L!;!' B L!;!'

Ma$*3a"t*r!1

Ma$*3a"t*r!1

Ma$*3a"t*r!1

Ma$*3a"t*r!1

0holesaler

0holesaler

J#

!r1

R!tai'!r1

R!tai'!r1 R!tai'!r1

C#$1*m!r

C#$1*m!r

C#$1*m!r

C#$1*m!r

CHANNELS OF DISTRIBUTION CONFLICT

:7

It is important to identify the different courses of channel conflict some are easy to resolve, others more difficult. % ma1or courses is goal in compatibility, for example, the manufacturer may want to achieve rapid market penetration through a low price policy. he dealers, in

contrast, may prefer to work with high margins and purse short4run profitability. Some times conflict arises from unclear roles and rights by adding new channels, a company faces the possibility of channel conflict. he following three channels conflicts. .5 #onflict between the nature account managers and field sales forces. 25 #onflict between the field sales forces and the telemakers. 75 #onflict between the field sales forces and the dealers.

CHANNEL MANAGEMENT
'ffective channel management calls for selecting intermediaries and training and motivating them. he goal is to build along term partnership that will be profitable for all channel members, individual members must be periodically evaluated against pre4 established standards, channel arrangements may need to be modified when market conditions change.

VARIOUS TYPES OF CHANNEL MEMBERS

:9

%/'& S ,+OB'+S *'%('+S *IS +I,- O+S AO,,'+S +'SI*'& ,-I'+ 0$O('S%('+S #OMMISSIO& $O-S'S +' %I('+S #O&S-M'+S I&*-S +I%( S O+'

PHYSICAL DISTRIBUTION
+%&S!O+ S O+%/' 0%+'$O-SI&/

CHANNEL IMPORTANCE IN SUGAR INDUSTRY


In diversified country like India where industrial development is not decentralized, there is need for e6uitable distribution of the sugar among various parts of the country. $ence the importance of distribution channels is phenomenal in this industry. he wide spread disparity in sugar prices across the country is indicative of the fact that still to day there is some sort of imperfection in the market atleast on distribution.

::

PROBLEMS -ITH LEVY SYSTEM


he government and sugar mills have not yet sorted out the differences over the issue of raising the levy 6uota as the industry insists no restriction on open market sale. -nder the levy 6uota system, all sugar mills are mandated to contribute .<C of their production to the #entre at a rate fixed by the government. Mills complain that the levy sugar price is less than the cost of output. Industry wants that there should be no restriction in selling the remaining 6uantity in the open market, sources said, adding whatever formula be worked out should be valid for a year only. he government has proposed three alternatives by hiking the levy 6uota to 2<C or 27C or 2:C. #urrently, the main restriction on open market sale of sugar is the release order mechanism, by which the government allocates the 6uantity for each mill every month..

PRICE CONTROL PRACTICES BY GOVERNMENT


hese include an additional release of four lakh tonnes of free sale sugar 6uota for the Aanuary4March 6uarter, automatic conversion of unsold free4sale 6uota sugar into levy sugar at the end of every month and an extension in the time allowed for the re4export of the imported raw sugar from the present 29 months to 7; months. If these measures also fail to bring down the prices, /overnment will not hesitate to allow the import of white sugar 8finished sugar5 or to waive off the re4export obligation for raw sugar imported under the advance licence scheme.

:;

his, coupled with the anticipation of a government crackdown on speculators, had already resulted in a perceptible drop in sugar prices today, the minister claimed. he price fall 8per 6uintal5 was +s 7< in -ttar !radesh, +s 7: in

Maharashtra, +s 9:4:< in /u1arat and +s 9<49: in !un1ab. %dditional release of 9<<,<<< tonnes of free sale sugar 6uota for Aanuary4March 6uarter. %utomatic conversion of unsold free4sale 6uota sugar into levy sugar at the end of every month

'xtension in the time allowed for the re4export of the imported raw sugar from the present 29 months to 7; months.

PROBLEMS -ITH DISTRIBUTION OF RA- MATERIAL


/overnment rules and restrictions are not only at sugars sale and distribution but also at the purchase of raw material i.e sugar cane. he sugar cane act .@79, empowers the government both central and state to make rules regarding minimum price fixation for the sugar cultivated in the notified areas. %s a result the factories are forced to procure the sugar can at a price more than that available in the open market. 0hile this is necessary from cultivators point of view, the concerns of the sugar factories canFt be ignored. /overnment should understand the difficulty to be faced by the industry if regulated from both ends.

:=

PROBLEMS -ITH PRODUCTION


here has been a significant increase in the price of sugar during the past few months, which has generated a series of extreme reactions and a host of suggestions. !olicy makers, however, need to be more cautious and understand the reasons for the current state of affairs before taking any knee41erk decisions. It is true that there has been a 22C decline in the output of sugarcane in 2<<?4<@, resulting a fall in sugar output from 2;.7 million tonnes in 2<<=4<? to .9.7 million tonnes in 2<<?4<@. his steep decline in the output of sugar, however, is not a problem that has been created by single yearNs shortfall in cane output. ItNs the result of a continuous decline in sugarcane production during the last two years after scaling a peak of 7::.: million tonnes in 2<<;4<=. his phenomenon of downward trend in the output of sugarcane and sugar for some years followed by an upturn in output for a few years is not new. It has been going on for several years. he main reason for these cycles is mainly the policy regime for

sugarcane and sugar, which has become very complex over the years. -nlike rice and wheat, prices that farmers get for sugarcane are not the ones suggested by the #ommission for %gricultural #osts and !rices 8#%#!5. State governments announce their own state4advised prices 8S%!5, which are much higher than those recommended by the #%#!, and vary greatly among states. he actual prices paid by sugar factories are, in general, close to and sometimes higher than, S%! because they have to compete with the alternative sweetener industry.

:?

Our analysis shows that the mean excess of actual prices paid by sugar factories over state level support prices exhibit substantially higher incentives during the recent years. %t times, the high price of sugarcane not only increases the cost of producing sugar, but also create a peculiar situation for sugar producers. 0hen the realisations from the sale of sugar are low, there is an accumulation of stocks, which leads to an increase in cane arrears that have to be paid to sugarcane growers. his affects sugarcane producers adversely as non4repayment of arrears means losses to farmers. his in turn leads to lower allocation of area for cane cultivation leading to a reduction in sugarcane. %nd, when prices of sugar recover due to fall in sugarcane output, the accumulated stocks are li6uidated and farmers are paid their arrears. he cycle is repeated after a few years, and usually lasts somewhere between :4= years depending on the market situation. his is a serious problem with sugar production in the country and has been discussed several times including by various high powered committees, which have studied the sugar sector in detail. he current situation is essentially a reflection of this phenomenon.

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DATA ANALYSIS AND INTERPRETATION TABLE6 A DATA ANALYSIS AND INTERPRETATION


O""*&ati#$ !rofessional $ome Maker ,usiness 'mployee Student Others N#/ #3 R!1&#$%!$t1 ; 2 .: 22 < : =2) P!r"!$ta+! .. : 7< 97 < ..

50 45 40 35 30 25 20 15 10 5 0
al r ye e M ak e Bu si ne Em pl o St ud en ss io n th er s ss t

Professional Home Maker Business Employee Student Others

Pr of e

INTERPRETATION: )rom the chart we derive that 9C consists of !rofessional, 2C consists of $ome maker, ..C consists of ,usiness, .;C of 'mployees, 9C others and no students so we can say that there are more number of employees.

om e

;<

TABLE6 8 INCOME PER ANNUM OF THE CUSTOMERS


I$"#m! P!r A$$*m (ess than . (akh . (akh E 2 (akh 2 (akh E 7 (akh More than 7 (akh N*m !r #3 t(! C*1t#m!r1 < < 2< 7< =2) P!r"!$ta+! < < 9< ;<

ess than 1 akh 1 akh ! 2 akh 2 akh ! 3 akh More than 3 akh

INTERPRETATION: )rom the above chart we can know that the income per annum of 2 (akh 4 7 (akh is 9< percent and more than 7 (akh are ;< percent.

TABLE6 B

;.

FEMILY SIDE OF THE CUSTOMERS


Fami'y Si,! wo hree )our More han )our N*m !r #3 t(! C*1t#m!r1 . .: 22 .2 =2) P!r"!$ta+! 7 7< 97 29

45 40 35 30 25 20 15 10 5 0 "#o "hree $our More "han $our "#o "hree $our More "han $our

INTERPRETATION: )rom the above chart we can derive that the 7C consists of family size, 7<C consists of three family members, 97C consists of four family members and 29C consists of more than four family members

TABLE6C

;2

ETYPE OF BRANCHES IN OVERALL SURVEYE


,rand &ame #$'((-+#$%/%((M%$%+%S +% M%*$-#O& /'MI&I 8 &5 otal
35 30 25 20 15 10 5 0 8 34 28 23 7 %

&o. Of +espondents 2< .= : .9 9 ;<

!ercentage 79 2? ? 27 = .<<

INTERPRETATION ; )rom the above table we conclude that, 79C of the respondents prefer #helluru Sugar, 2?C of the respondents are preferring #hagallu sugar, and ?C of the respondents are interested in Maharastra ,rand, 27C of the respondents are using Madhucon ,=C of the respondents are /emini imported from amil &adu.

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TABLE6 <

AREAS IN OPERATION
%reas -rban Semi -rban +ural otal &o. Of +espondents 2< .< 7< ;< !ercentage 77 .= :< .<<

33
Urban Semi Urban Rural

50 17

INTERPRETATION :
)rom the above table we conclude that, many of the respondents belong to the rural areas. here fore the analysis is not e6ually balance and heavy

weight is given to rural consumers by the researcher. )ast moving consumer goods in general are highly concentrated market in urban areas.

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TABLE6 F TYPES OF INFRASTRUCTURE


I$3ra1tr*"t*r! O33i"! -ar!(#*1!1 Va$1 T#ta' N#/ O3 R!1&#$%!$t1 B9 9< 8< F9 P!r"!$ta+! <9 G C8 A99

42% 50%

Office Ware house vans

8%

INTERPRETATION ; )rom the above table we conclude that all of them respondents are own infrastructure. $ow ever the ware house infrascture is not available to all the respondents. It is one of the important dimensions of the distribution net work. &early market. 92C percent own the transportation facility to reach the

;:

%,('4=

AREAS IN OPERATION
%reas -rban Semi -rban +ural otal &o. Of +espondents 2< .< 7< ;< !ercentage 77 .= :< .<<

Urban Semi Urban Rural

INTERPRETATION:
)rom the above table we conclude that, many of the respondents belong to the rural areas. here fore the analysis is not e6ually balance and heavy

weight is given to rural consumers by the researcher. )ast moving consumer goods in general are highly concentrated market in urban areas.

;;

TABLE6 G TYPES OF INFRASTRUCTURE


I$3ra1tr*"t*r! O33i"! -ar!(#*1!1 Va$1 T#ta' N#/ O3 R!1&#$%!$t1 B9 9< 8< F9 P!r"!$ta+! <9 G C8 A99

Office Ware house vans

INTERPRETATION ; )rom the above table we conclude that all of them respondents are own infrastructure. $ow ever the ware house infrascture is not available to all the respondents. It is one of the important dimensions of the distribution net

;=

work. &early market.

92C percent own the transportation facility to reach the

;?

TABLE6H
%i

M#%! O3 Paym!$t
R!3!r!$"! Ca1( Cr!%it T#ta' N#/ O3 R!1&#$%!$t1 CA AH F9 P!r"!$ta+! =2) FG B8 A99/99

50% 40% 30% 20% 10% 0% 41% 19% cash re!i"

INTERPRETATION: )rom the above table we conclude that, ;?C of the respondents are payment cash, 72C of the respondents are payment credit. It is clear that

ma1ority of the respondents 8;?C5 payment on cash.

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TABLE6A9

PAC.AGED PRODUCTS AVAILABLE FOR THE CONSUMER


Puantity : kgs .< kgs 2: kgs otal &o. Of +espondents 9< : .: ;< !ercentage ;;.;= ?.77 2: .<<

70% #0% 50% 40% 30% 20% 10% 0% 8% 25% #7%

INTERPRETATION )rom the above table we conclude that, ;;.;=C of the respondents are preferring : kg packing for sugar,?.77C of the respondents are interested in .< kg packing and 2: kgs packing is preffered by 2:C of the respon

=<

TABLE6AA REASONS FOR THE DEMAND OF THE PRODUCT


ISS-'S Puantity Puality (ow !rice %vailability otal &o. Of +espondents ? 9 2? 2< ;< !ercentage .7 = 9= 77 .<<

50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

47% 33% 13%

7%

INTERPRETATION : )rom the above table we conclude that ma1ority of respondents are 9=C of the low price for the product.

=.

TABLE6A8

OPINION ABOUT THE PRODUCTS


Pualities /ood Satisfactory otal &o. Of +espondents 77 2= ;< !ercentage :: 9: .<<

45% 55%
$oo! Sa"is

INTERPRETATION ; )rom the above we concluded that ma1ority of the respondents are ::C good the product.

=2

TABLE6AB

AVILABILTY AND IUALITY OF THE PRODUCTS


=2) Rati$+ /ood Hery /ood 'xcellent 'xtra Ordinary
%&"ra Or!inar' 0%

N*m !r #3 C*1t#m!r1 < .= ?7 <

P!r"!$ta+! < .= ?7 <

$oo! 0% (er' $oo! 17%

%&cellen" 83%

INTERPRETATION: )rom the above chart we can say that the rating that given by the respondents are 'xcellent ?7C, Hery /ood.=C, 'xtra Ordinary and /ood are of Tero percent. TABLE6AC

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PURCHASE E7PERIENCE

)urchase e&*erience in

N#/ #3 P!r"!$ta+! R!1&#$%!$t1 77 .2 : ;:C 2:C .<C

Ma%(*"#$ 1*+ar1 /ood Moderate !oor

10% 35%

#5%

I$t!r&r!tati#$:
)rom the above analysis it was observed that ;:C good, 2:C wants to purchase moderate and .<C poor in purchase.

=9

Tra$1&#rt

#0 50 40 30 20 10 0 +a"a!ors ,em*o Ric-sha. %

INTERPRETATION; )rom the above table we conclude that, :7C of the respondents are matadors, 2<C of the respondents are tempo, and 2=C of the respondents are rickshaw.

=:

FINDINGS
Ma1ority of the respondents are not having better transportation facilities to deal with channels of distribution *elay in delivery of the product, because of bulk sales. *elay in billing. (ack of awareness of product. %dvertisement promotions are not good.

=;

SUGGESTIONS
In order to maintain total 6uality management and to maintain the good will forever in the market, the company should produce the oils and other products at highly 6ualitative and also the company should ac6uire the International 6uality certification ISO @<<<, by which the 6uality itself speaks. Sugar Manufactures does not have any control over the retail price and the brand of their product. If they introduce :kgs or .< kgs packing under their brand name and M+! printed on the pack, there will be several benefits both to the manufacturer and the consumer. ,etter transportation arrangements should be made available for timely supply of sugar to the dealers by minimizing the waste of time in reallocating the time schedules of the drivers. he company must take proper care on attending the complaints like improper, setting etc. he company should adopt uniform credit facilities to all brokers and any kind of discrimination must be shown between any two brokers. In future company may face the problems of competitors keeping this

==

mind

the

management

should

take

sufficient

measures

in

advertisement less profit to the cast of production and sell the products by this the company will prevent entering of new competitors in the markets. It would be better if dealers were appointed a district wise they satisfy consumer needs in time. #hanging to : kgs packing may a innovative techni6ue if tried by the company, because in course of the study respondents preferred such a move from the company. #onventional style of packing .<< kgs bags should be changed to 2: kgs bags. It will ease the local transportation. he company must make marketing by opening branch office to increase sales figure and add more profits to the company. !rompt information regarding price reduction has to be sent to dealers in right time.

=?

CONCLUSION
.5 0ith he pace of modernization, there is an urgent need to go ahead with the development of appropriate technology for stabilization of sugar and alied by products in sugar industry. 25 he end of this century, sugar cane production and the potential sugar production increase drastically and hence to exploit this huge potential the right perspective and a commitment towards the inherent agriculture layer products is needed. 75 -sing this study, I can include that the sales of the company based on past sales records, are healthy and increasing coming few years. 95 It is fact that the prices of sugar will be changed over the year

hence forecast should be made in 6ualitative terms rather than monetary to give move accurate data. :5 he officers and staff of the marketing department provided a blend of professionalization and experience. In %ndhra sugars ltd the managerial functions are performed by the managers regard less of their position in the managerial hierarch at the organization.

=@

IUESTIONNAIRE
F*'' Nam!4444444444444444444444444444444444444444444444444444444444444444444444444444444444444444 A%%r!11: 66666666666666666666666666666666666666666666666666666666666666666666666666666666666666666
444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444 444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444 1/ Occu*a"ion a& Professional d& Employee 2/ 0ncome *er 1nnum a& ) 1 akh (& 2 akh ! 3 akh 3/ 2amil' Si3e a& 2 '& 3 (& 4 d& +4 '& 1 akh * 2 akh d& + 3 akh '& Home maker e& Student (& Business f& Others

C) -(!r! ar! t(! ra$"(!1 '#"at!%J a5#helluru d5/emini 8 &5 b5#hagallu e5Madhucon c5Maharastra

?<

<) Ar! y#* #&!rati$+ i$J a5 -rban d5 %ny Other F) -(at ty&! #3 i$3ra1tr*"t*r! %# y#* &r#"!11J a5 Office b5 0arehouse c5 Hans d5 %ny Other b5 +ural c5 Semi -rban

:) Ty&!1 #3 Va$1 *1!% 3#r 1a'!1J a5 Matadors c5 empos

b5 +ick4Shaw d5 %ny Other G) -(at ar! t(! "a&a"ity #3 t(! ;a$1J a5 ,elow 2 tonnes c5 2 4 9 tonnes c5 9 4 ; tonnes d5 ; 4? tonnes

H) M#%! #3 &aym!$tJ a5 #ash b5 #redit

?.

A9) -(i"( #3 t(!1! &a"?a+!% &r#%*"t1 %# y#* ma?! a;ai'a '! 3#r t(! "#$1*m!rJ a5 : kgs b5 2: kgs c5 .< kgs d5 More than 2: kgs

AA) R!a1#$1 3#r %!ma$% #3 t(! a #;! &r#%*"tJ a5 Puantity b5 !rice c5 Puality d5 %vailability

A8) O&i$i#$ r!+ar%i$+ t(! &r#%*"t1J a5 /ood b5 satisfactory

AB) Ar! y#* 1ati13i!% 5it( t(! a;ai'a i'ity a$% )*a'ity #3 t(! Pr#%*"t1 #3 Ma%(*"#$ 1*+ar1 a5 /oo b5 Hery /ood c5 'xcellent d5 'xtra Ordinary

14/ Wha" is 'our *urchase e&*erience in Ma%(*"#$ 1*+ar14 ,a& -ood ,'& Moderate ,(& Poor

15/ 5o. "o sales *romo"ional cam*ai6n4

a5 +eduction of price

b5 %dvertisement

?2

BIBLIOGRAPHY
TE7T BOO.S S7no 1u"hor 1 Phillip kotler S H H /a0mi 1 2 Satish / Batra 3 7898/othari 8oo- name Marketin. Man.ement 2d3ertisin. 4 Sales promotion 9easear(h Methodolo.y %!i"ion )ublica"ion 11th 2nd * * Pearson Edu(ation limited 2nura. 5ain for E6(el 'ook pu'lishers * *

4 :8:8Sharma Marketin. 9esear(h COMPANY SOURCES !rofile %nnual +eports Aournals

K JOURNALS Q ,usiness India Q ,usiness 0orld Q ,usiness oday %dvertising and Marketing Q 'conomic imes. K JOURNALS Q www.madhuconsugar.com Q www.wikepeid.com Q www.sugarindustry.com

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