INTRODUCTION The distribution channel

Distribution is also a very important component of Logistics & Supply chain management. Distribution in supply chain management means the distribution of good from one business to other it can be factory to supplier, supplier to retailer or retailer to the end customer. It is defined as a chain of intermediaries; each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user.

Channels
A number of alternate 'channels' of distribution may be available:

Distributor, who sells to retailers, Retailer (also called dealer or reseller), who sells to end customers Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alice from producer to consumer in certain sectors, since both direct and indirect channels may be used. Hotels, for example, may sell their services (typically rooms) directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation systems, etc. process of transfer the products or services from Producer to Customer or end user. There have also been some innovations in the distribution of services. For example, there has been an increase in franchising and in rental services - the latter offering anything from televisions through tools. There has also been some evidence of service integration, with services linking together, particularly in the travel and tourism sectors. For example, links now exist between airlines, hotels and car rental services. In addition, there has been a significant increase

in retail outlets for the service sector. Outlets such as estate agencies and building society offices are crowding out traditional grocers from major shopping areas.

Channel decisions
Channel Sales is nothing but a chain for to market a product through different sources.

Channel strategy Gravity & Gravity Push and Pull strategy Product (or service) Cost Consumer location

Managerial concerns
The channel decision is very important. In theory at least, there is a form of trade-off: the cost of using intermediaries to achieve wider distribution is supposedly lower. Indeed, most consumer goods manufacturers could never justify the cost of selling direct to their consumers, except by mail order. Many suppliers seem to assume that once their product has been sold into the channel, into the beginning of the distribution chain, their job is finished. Yet that distribution chain is merely assuming a part of the supplier's responsibility; and, if they have any aspirations to be market-oriented, their job should really be extended to managing all the processes involved in that chain, until the product or service arrives with the end-user. This may involve a number of decisions on the part of the supplier:

Channel membership Channel motivation Monitoring and managing channels

Type of marketing channel

1. Intensive distribution - Where the majority of resellers stock the 'product' (with convenience products, for example, and particularly the brand leaders in consumer goods markets) price competition may be evident. 2. Selective distribution - This is the normal pattern (in both consumer and industrial markets) where 'suitable' resellers stock the product. 3. Exclusive distribution - Only specially selected resellers or authorized dealers (typically only one per geographical area) are allowed to sell the 'product'.

Channel motivation
It is difficult enough to motivate direct employees to provide the necessary sales and service support. Motivating the owners and employees of the independent organizations in a distribution chain requires even greater effort. There are many devices for achieving such motivation. Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in the channel to push the product rather than its competitors; or a compensation is offered to the distributors' sales personnel, so that they are tempted to push the product. Julian Dent defines this incentive as a Channel Value Proposition or business case, with which the supplier sells the channel member on the commercial merits of doing business together. He describes this as selling business models not products.

NEED FOR THE STUDY Consumer satisfaction is the most important objective for any manufacturing concern to successfully market its products. HAYWARDS 5000 MINERAL WATERhas from gradually and would want to take a stock of the satisfaction level of consumers and define areas where possible improvement may be made. The research work has been therefore selected in this area. The company which produces products doesnt give life to sustain in competition without sales of products. So sales are important function of the manufacturing company to get profits. Through sales only wealth maximization if possible. Distributions are also one of the important functions in marketing. Through distribution only one company can sell its products. Here the distribution channels contain the dealers. Who are very near to the customers and act as middlemen between the organizations. So there is a need to study sales and distribute on strategies. Distribution system includes distribution channels. Which are sets of independent organizations involves in the process of making a product (or) a service available for the consumption. Distribution network is necessary for smooth flow of goods. OBJECTIVES OF THE STUDY To assess the role of dealers in HAYWARDS 5000 MINERAL WATERIndustries Limited. 1. To assess the channel effectiveness in HAYWARDS 5000 MINERAL WATER. 2. To find dealers opinion on various issues of the present market situation and furthering (strengthening) channel effectiveness. 3. To offer suggestion in building effective channel strategy to HAYWARDS 5000 MINERAL WATER.
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SCOPE OF THE STUDY The study aims to measure satisfaction level of the dealers regarding PCIL. The area within which the study was conducted regarding the information the primary data is collected in the form of questionnaire collected from the dealers in Hyderabad district. To sum up the project had within the scope of the study in the area of DISTRIBUTION CHANNEL of HAYWARDS 5000 MINERAL WATERdealers in Hyderabad district for a particular time (2011) METHODOLOGY OF STUDY: In view of the objectives of the study, an exploratory design has been adopted. Further the researcher also touched the descriptive researcher design and causal analysis to relate between different variables. Exploratory research is one which largely interprets the available information on the study and it lays emphasis on the analysis and interpretation of the exiting and available information. This research is generally useful when we use the information collected from three sources, viz., study of secondary sources, discussion with individuals and analyzing the some specific case. Sources of Data: To perform the Research study by Researcher, the sources of data obtained are: Primary Data: This data is obtained by interacting and interviewing the dealers in Hyderabad district. Secondary Data: This data is obtained directly from the company in the form of broachers, charts, diagrams, document and other forms.

Data Collection Tool: Questionnaire: This is one of the data collection tools. It is quite popular particularly in case big enquires. It is being adopted by private individuals, research worker, private and public organization and even government. In this method, a questionnaire is issued to the persons concerned with a request to answer the questions and return the questionnaire. A questionnaire consists of number of questions printed or typed in a definite order or a form or set of forms The researcher used the structured questionnaire in which the questions were: Open-ended questions Close-ended questions Dichotomous questions Multiple choice questions Sampling Design The researcher has done his research study on the dealers of HAYWARDS 5000 MINERAL WATERto know their present satisfaction and expectation from this brand. The researcher selected the dealers of HAYWARDS 5000 MINERAL WATERat Hyderabad district for his research study. Sampling Plan Sample size: Sample size consists of 50 dealers.

Sampling unit: The Sampling unit includes all the dealers of HAYWARDS 5000 MINERAL WATERproducts present in Hyderabad District. Sampling method: For collecting information from dealers, non-probabilistic simple random sampling method is used. Tools of analysis: The data collected trough survey has been carefully and meaningfully analyzed by using well established statistical tool and techniques. Important statistical technique is percentage method. Limitations of the study: The selected sample members are conspicuous and inconspicuous in nature. So, there is chance to arise some errors in the courts of survey. The errors may be as follows: Respondents may not disclose the right information, because the researcher is very stranger to them. Respondents may give pleasing answers to the researchers even though it is not correct from the prospective. The perceptional values like status, not-disclosure of the correct information and difficulty in expressing their personal feeling to an unknown researcher can bring wrong opinion poll ton filling the questionnaire. Since, the sample size is small; a perfect mix of the respondents may not be available for the researcher to conduct the opinion survey.

CHAPTER-II INDUSTRY PROFILE & COMPANY PROFILE

INDUSTRY PROFILE

MINERAL WATER Industry in India

We introduce ourselves as one of the leading manufacturers of Water, Waste Water Treatment and Desalination Technologies since 1972, with 4 decades of experience in the field of Water Treatment.We are also one of the largest manufacturers of Mineral Water Processing Machine, Bottling Machines and PET Stretch Blow Moulding Machines in the world. We also specialize in Effluent Treatment Plants and Sewage Treatment Plant. We have successfully supplied more than 5000 Projects of various sizes in India, Sri Lanka, Bangladesh, Middle East, Africa, South East Africa, Australia, Eastern Europe and USA . The above projects have covered various industries like Textile, Tanneries, Bottle Water, Beverages, Sugar Mills, Refineries, Automobiles, Pharmaceuticals, Hotels and Resorts etc., globally. Our successful history for the past 40 years speaks about our Technical Strength. Our specialization and expertise includes Bottle Water Projects with more than 2000 installation worldwide. We are one-stop manufacturers of complete Processing, Packing Machineries and PET Blowing Machine for Bottle Water. We have secured a 5 Million USD contract against global competition for the supply of Containerized Desalination Units to the US Defence through M/s. Hurronsbury Ltd. U.K. The company also won a 3 Million USD order for Bottle Water Project from Federal Electrical and Water Department U.A.E. We are approved suppliers to all major International Brands like Pepsi Beverages, Pepsi Bottled Water (Brand Aquafina), Shaw Wallace and Co. Ltd., Royal Challenge, Director's Special, John Exshaw, Haywards, United Breweries Limited, King Fisher and Mc Dowell's No.1. We are also one of the very few companies in the world, approved to supply machines to Pepsico Holdings Private Limited. 9

HAYWARDS 5000 Mineral Water has received a Pioneer Certificate from the Chairman & Managing Director of Pepsi Co Holdings Pvt. Ltd., for world debut of Aquafina bulk water. The first ABWA Approved Plant in India SABOLS was supplied, installed and commissioned by us. HAYWARDS 5000 Mineral Water has been associated with International Bottled Water Association (IBWA) for a decade. HAYWARDS 5000 Mineral Water is one of the approved suppliers of IBWA and our chairman and Managing Director was the Indian Representative of IBWA. HAYWARDS 5000 Mineral Water is an ISO 9001 TUV Certified Company for design, manufacturing and marketing divisions. We are the approved supplier to leading Pharmaceutical Companies for USP 26 27 Standard Plants (e.g. Johnson & Johnson Limited). HAYWARDS 5000 Mineral Water has global operations with Channel Partners and own establishments over 42 Countries Worldwide. HAYWARDS 5000 Mineral Water is a reputed name among the Industrial Water users for the past four decades. A pioneer in this field, our company is one of the very few in the world with a complete range of water, wastewater, bottled water products and services. Our position of strength has been attained by our focus on technological advancement through continuous Research and Development. The company has a full-fledged R&D center where our engineer's work on new product design, development, as well as upgradation of existing ones and indigenization of foreign technologies obtained through collaborations. Our international business division contributes a major share of the companys sales turn over. The company has established offices in Dubai, UAE as well as in the USA and China to take care of regional support. The company has executed the largest Mineral water project in India with the capacity of 1.2 Million liters per day. Haywards 5000 Mineral Wateris the only company, which provides a complete solution for Water Treatment, Mineral Water, Bottled Water, Soft Drinks and Sparkling Water Projects on Turnkey Basis. We cover a wide area of applications and technologies.

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Government Initiatives The MINERAL WATER industry is pushing for increased use of MINERAL WATER in highway and road construction. The Ministry of Road Transport and Highways has planned to invest US$ 354 billion in road infrastructure by 2012. Housing, infrastructure projects and the nascent trend of concrete roads would continue to accelerate the consumption of MINERAL WATER. Increased infrastructure spending has been a key focus area. In the Union Budget 2010-11, US$ 37.4 billion has been provided for infrastructure development. The government has also increased budgetary allocation for roads by 13 per cent to US$ 4.3 billion. Gujarat plans to treble its MINERAL WATER production capacity in 3-5 years. Proposals have been invited from MINERAL WATER companies such as ACC, ABG, Ambuja MINERAL WATER, Emami, Indiabulls, Adani group, Ultratech and L&T and the state hopes to raise its capacity from 20 million tonnes per annum to 70 million tonne. The state will host the biennial Vibrant Gujarat Global Summit in January 2011 and expects to witness investment proposals worth US$ 13.2 billion in the MINERAL WATER sector. Exchange rate used: 1 USD = 45.42 INR (as of December 2010) The MINERAL WATER industry is one of the vital industries for economic development in a country. The total utilization of MINERAL WATER in a year is used as an indicator of economic growth.

MINERAL WATER is a necessary constituent of infrastructure development and a key raw material for the construction industry, especially in the governments infrastructure development plans in the context of the nations socioeconomic development.

Prior To Independence The first endeavor to manufacture MINERAL WATER dates back to 1889 when a Calcutta based company endeavored to manufacture MINERAL WATER from Argillaceous (kankar).

But the first endeavor to manufacture MINERAL WATER in an organized way commenced in Madras. South India Industries Limited began manufacture of Portland MINERAL WATER in 1904.But the effort 11

did not succeed and the company had to halt production.

Finally it was in 1914 that the first licensed MINERAL WATER manufacturing unit was set up by India MINERAL WATER Company Ltd at Porbandar, Gujarat with an available capacity of 10,000 tons and production of 1000 installed. The First World War gave the impetus to the MINERAL WATER industry still in its initial stages. The following decade saw tremendous progress in terms of manufacturing units, installed capacity and production. This phase is also referred to as the Nascent Stage of Indian MINERAL WATER Industry.

During the earlier years, production of MINERAL WATER exceeded the demand. Society had a biased opinion against the MINERAL WATER manufactured in India, which further led to reduction in demand. The government intervened by giving protection to the Industry and by encouraging cooperation among the manufacturers.

In 1927, the Concrete Association of India was formed with the twin goals of creating a positive awareness among the public of the utility of MINERAL WATER and to propagate MINERAL WATER consumption.

After Independence The growth rate of MINERAL WATER was slow around the period after independence due to various factors like low prices, slow growth in additional capacity and rising cost. The government intervened several times to boost the industry, by increasing prices and providing financial incentives. But it had little impact on the industry.

In 1956, the price and distribution control system was set up to ensure fair prices for both the manufacturers and consumers across the country and to reduce regional imbalances and reach self sufficiency.

Period Of Restriction (1969-1982) The MINERAL WATER industry in India was severely restrained by the government during this period. Government hold over the industry was through both direct and indirect means. Government intervened directly by exercising authority over production, capacity and distribution of MINERAL 12

WATER and it intervened indirectly through price control.

In 1977 the government authorized higher prices for MINERAL WATER manufactured by new units or through capacity increase in existing units. But still the growth rate was below par.

In 1979 the government introduced a three tier price system. Prices were different for MINERAL WATER produced in low, medium and high cost plants.

However the price control did not have the desired effect. Rise in input cost, reduced profit margins meant the manufacturers could not allocate funds for increase in capacity.

Partial Control (1982-1989) To give impetus to the MINERAL WATER industry, the Government of India introduced a quota system in 1982.A quota of 66.60% was imposed for sales to Government and small real estate developers. For new units and sick units a lower quota at 50% was effected. The remaining 33.40% was allowed to be sold in the open market.

These changes had a desired effect on the industry. Profitability of the manufacturers increased substantially, but the rising input cost was a cause for concern.

After Liberalization In 1989 the MINERAL WATER industry was given complete freedom, to gear it up to meet the challenges of free market competition due to the impending policy of liberalization. In 1991 the industry was de licensed.

This resulted in an accelerated growth for the industry and availability of state of the art technology for modernization. Most of the major players invested heavily for capacity expansion.

To maximize the opportunity available in the form of global markets, the industry laid greater focus on exports. The role of the government has been extremely crucial in the growth of the industry.

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Future Trends

The MINERAL WATER industry is expected to grow steadily in 2009-2010 and increase capacity by another 50 million tons in spite of the recession and decrease in demand from the housing sector.

The industry experts project the sector to grow by 9 to 10% for the current financial year provided India's GDP grows at 7%.

India ranks second in MINERAL WATER production after China. The major Indian MINERAL WATER companies are Associated MINERAL WATER Company Ltd (ACC), Grasim Industries Ltd, Ambuja MINERAL WATERs Ltd, J.K MINERAL WATER Ltd and Madras MINERAL WATER Ltd.

The major players have all made investments to increase the production capacity in the past few months, heralding a positive outlook for the industry.

The housing sector accounts for 50% of the demand for MINERAL WATER and this trend is expected to continue in the near future.

An increased outflow in infrastructure sector, by the government as well as private builders, has raised a significant demand of MINERAL WATER in India. It is the key raw material in construction industry. Also, it has highly influenced those bigger companies to participate in the growing sector. At least 125 plants set up by the big companies in India with about 300 other small scale MINERAL WATER manufacturers, to fulfill the growing demand of MINERAL WATER. Being one of the vital industries, the MINERAL WATER industry contributes to the nation's socioeconomic development. The sum total utilization of MINERAL WATER in a year indicates the country's economic growth. MINERAL WATER plant was first set up in Calcutta, in 1889. At that time, the MINERAL WATER used to manufacture from Argillaceous. In 1904, the first organized set up to manufacture MINERAL WATER was commenced in Madras, which was named South India Industries Limited. Again in 1914, another MINERAL WATER manufacturing unit was set up in Porbandar, Gujarat, but this time it was licensed. In the early years of that era, the demand for the MINERAL WATER tremendously exceeded but only after few years, the industry faced a severe downfall. To overcome from this the worsening situation, the Concrete Association of

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India was founded in 1927. The organization has two prime goals, one was to create awareness about utility of utilization. Even after the independence, the growth of the MINERAL WATER industry was too gradual. In the year 1956, a Distribution Control System was established with an objective to provide Indian manufacturers and consumers self sufficiency. Indian government then introduced a quota system to provide an impetus to this industry, in which 66% of the sales was imposed to government or small real estate developers. After the implementation of quota, the MINERAL WATER industry tasted a sudden growth and profitability in India. In 1991, the government delicensed the MINERAL WATER industry. The growth of the industry accelerated forthwith and majority of the industrialists invested heavily in the industry with the awarded freedom. The industry started focusing on export also to double the opportunity available for it in global markets. Today, the MINERAL WATER manufacturers in India have transformed into leading Indian exporters of MINERAL WATER across the world. The demand of MINERAL WATER in year 2009-2010 is expected to increase by 50 million tons despite of the recession and decline in demand of housing sector. Against India's GDP growth of 7%, the experts have estimated the MINERAL WATER sector to grow by 9 to 10 % in the current financial year. Major Indian MINERAL WATER manufacturers and exporters have all made huge investments in the last few months to increase their production capability. This heralds an optimistic outlook for MINERAL WATER industry. The housing sector in India accounts for 50 % of the MINERAL WATER's demand. And the demand is expected to continue. With the constant effort made by MINERAL WATER manufacturers and exporters, India has become the second largest MINERAL WATER Ltd., Associated MINERAL WATER producer in the world. Madras MINERAL WATER Company Ltd (ACC), Ambuja MINERAL WATER and another was to encourage MINERAL WATER

MINERAL WATERs Ltd, Grasim Industries Ltd, and J.K MINERAL WATER Ltd. are among few renowned names of the major Indian MINERAL WATER companies.

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In the most general sense of the word, a MINERAL WATER is a binder, a substance which sets and hardens independently, and can bind other materials together. The word " MINERAL WATER" traces to the Romans, who used the term "opus caementicium" to describe masonry which resembled concrete and was made from crushed rock with burnt lime as binder. The volcanic ash and pulverized brick additives which were added to the burnt lime to obtain a hydraulic binder were later referred to as MINERAL WATERum, cimentum, cment and MINERAL WATER. MINERAL WATERs used in construction are characterized as hydraulic or non-hydraulic. The most important use of MINERAL WATER is the production of mortar and concretethe bonding of natural or artificial aggregates to form a strong building material which is durable in the face of normal environmental effects. Concrete should not be confused with MINERAL WATER because the term MINERAL WATER refers only to the dry powder substance used to bind the aggregate materials of concrete. Upon the addition of water and/or additives the MINERAL WATER mixture is referred to as concrete, especially if aggregates have been added. It is uncertain where it was first discovered that a combination of hydrated non-hydraulic lime and a pozzolan produces a hydraulic mixture (see also: Pozzolanic reaction), but concrete made from such mixtures was first used on a large scale by Roman engineers.They used both natural pozzolans (trass or pumice) and artificial pozzolans (ground brick or pottery) in these concretes. Many excellent examples of structures made from these concretes are still standing, notably the huge monolithic dome of the Pantheon in Rome and the massive Baths of Caracalla. The vast system of Roman aqueducts also made extensive use of hydraulic MINERAL WATER. The use of structural concrete disappeared in medieval Europe, although weak pozzolanic concretes continued to be used as a core fill in stone walls and columns. Modern MINERAL WATER Modern hydraulic MINERAL WATERs began to be developed from the start of the Industrial Revolution (around 1800), driven by three main needs: Hydraulic renders for finishing brick buildings in wet climates Hydraulic mortars for masonry construction of harbor works etc, in contact with sea water.

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Development of strong concretes. In Britain particularly, good quality building stone became ever more expensive during a period of rapid growth, and it became a common practice to construct prestige buildings from the new industrial bricks, and to finish them with a stucco to imitate stone. Hydraulic limes were favored for this, but the need for a fast set time encouraged the development of new MINERAL WATERs. Most famous was Parker's "Roman MINERAL WATER." This was developed by James Parker in the 1780s, and finally patented in 1796. It was, in fact, nothing like any material used by the Romans, but was a "Natural MINERAL WATER" made by burning septaria - nodules that are found in certain clay deposits, and that contain both clay minerals and calcium carbonate. The burnt nodules were ground to a fine powder. This product, made into a mortar with sand, set in 515 minutes. The success of "Roman MINERAL WATER" led other manufacturers to develop rival products by burning artificial mixtures of clay and chalk. John Smeaton made an important contribution to the development of MINERAL WATERs when he was planning the construction of the third Eddystone Lighthouse (1755-9) in the English Channel. He needed a hydraulic mortar that would set and develop some strength in the twelve hour period between successive high tides. He performed an exhaustive market research on the available hydraulic limes, visiting their production sites, and noted that the "hydraulicity" of the lime was directly related to the clay content of the limestone from which it was made. Smeaton was a civil engineer by profession, and took the idea no further. Apparently unaware of Smeaton's work, the same principle was identified by Louis Vicat in the first decade of the nineteenth century. Vicat went on to devise a method of combining chalk and clay into an intimate mixture, and, burning this, produced an "artificial MINERAL WATER" in 1817. James Frost,orking in Britain, produced what he called "British MINERAL WATER" in a similar manner around the same time, but did not obtain a patent until 1822. In 1824, Joseph Aspdin patented a similar material, which he called Portland MINERAL WATER, because the render made from it was in color similar to the prestigious Portland stone. All the above products could not compete with lime/pozzolan concretes because of fast-setting (giving insufficient time for pla MINERAL WATER) and low early strengths (requiring a delay of many weeks before formwork could be removed). Hydraulic limes, "natural" MINERAL WATERs and "artificial" MINERAL WATERs all rely upon their belite content for strength development. Belite develops strength slowly. Because they were burned at temperatures below 1250 C, they contained no alite, which is responsible for early strength in modern MINERAL WATERs. The first MINERAL WATER to consistently contain alite was made by Joseph Aspdin's son William in the early 1840s. This was what we call today 17

"modern" Portland MINERAL WATER. Because of the air of mystery with which William Aspdin surrounded his product, others (e.g. Vicat and I C Johnson) have claimed precedence in this invention, but recent analysis of both his concrete and raw MINERAL WATER have shown that William Aspdin's product made at Northfleet, Kent was a true alite-based MINERAL WATER. However, Aspdin's methods were "rule-of-thumb": Vicat is responsible for establishing the chemical basis of these MINERAL WATERs, and Johnson established the importance of sintering the mix in the kiln. William Aspdin's innovation was counter-intuitive for manufacturers of "artificial MINERAL WATERs", because they required more lime in the mix (a problem for his father), because they required a much higher kiln temperature (and therefore more fuel) and because the resulting clinker was very hard and rapidly wore down the millstones which were the only available grinding technology of the time. Manufacturing costs were therefore considerably higher, but the product set reasonably slowly and developed strength quickly, thus opening up a market for use in concrete. The use of concrete in construction grew rapidly from 1850 onwards, and was soon the dominant use for MINERAL WATERs. Thus Portland MINERAL WATER began its predominant role. it is made from water and sand Types of modern MINERAL WATER Portland MINERAL WATER MINERAL WATER is made by heating limestone (calcium carbonate), with small quantities of other materials (such as clay) to 1450C in a kiln, in a process known as calcination, whereby a molecule of carbon dioxide is liberated from the calcium carbonate to form calcium oxide, or lime, which is then blended with the other materials that have been included in the mix . The resulting hard substance, called 'clinker', is then ground with a small amount of gypsum into a powder to make 'Ordinary Portland MINERAL WATER', the most commonly used type of MINERAL WATER (often referred to as OPC). Portland MINERAL WATER is a basic ingredient of concrete, mortar and most non-speciality grout. The most common use for Portland MINERAL WATER is in the production of concrete. Concrete is a composite material consisting of aggregate (gravel and sand), MINERAL WATER, and water. As a construction material, concrete can be cast in almost any shape desired, and once hardened, can become a structural (load bearing) element. Portland MINERAL WATER may be gray or white. Portland MINERAL WATER blends

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These are often available as inter-ground mixtures from MINERAL WATER manufacturers, but similar formulations are often also mixed from the ground components at the concrete mixing plant. Portland blastfurnace MINERAL WATER contains up to 70% ground granulated blast furnace slag, with the rest Portland clinker and a little gypsum. All compositions produce high ultimate strength, but as slag content is increased, early strength is reduced, while sulfate resistance increases and heat evolution diminishes. Used as an economic alternative to Portland sulfate-resisting and low-heat MINERAL WATERs. Portland flyash MINERAL WATER contains up to 30% fly ash. The fly ash is pozzolanic, so that ultimate strength is maintained. Because fly ash addition allows a lower concrete water content, early strength can also be maintained. Where good quality cheap fly ash is available, this can be an economic alternative to ordinary Portland MINERAL WATER. Portland pozzolan MINERAL WATER includes fly ash MINERAL WATER, since fly ash is a pozzolan, but also includes MINERAL WATERs made from other natural or artificial pozzolans. In countries where volcanic ashes are available (e.g. Italy, Chile, Mexico, the Philippines) these MINERAL WATERs are often the most common form in use. Portland silica fume MINERAL WATER. Addition of silica fume can yield exceptionally high strengths, and MINERAL WATERs containing 5-20% silica fume are occasionally produced. However, silica fume is more usually added to Portland MINERAL WATER at the concrete mixer. Masonry MINERAL WATERs are used for preparing bricklaying mortars and stuccos, and must not be used in concrete. They are usually complex proprietary formulations containing Portland clinker and a number of other ingredients that may include limestone, hydrated lime, air entrainers, retarders, waterproofers and coloring agents. They are formulated to yield workable mortars that allow rapid and consistent masonry work. Subtle variations of Masonry MINERAL WATER in the US are Plastic MINERAL WATERs and Stucco MINERAL WATERs. These are designed to produce controlled bond with masonry blocks. Expansive MINERAL WATERs contain, in addition to Portland clinker, expansive clinkers (usually sulfoaluminate clinkers), and are designed to offset the effects of drying shrinkage that is normally encountered with hydraulic MINERAL WATERs. This allows large floor slabs (up to 60 m square) to be prepared without contraction joints. 19

White blended MINERAL WATERs may be made using white clinker and white supplementary materials such as high-purity metakaolin. Colored MINERAL WATERs are used for decorative purposes. In some standards, the addition of pigments to produce "colored Portland MINERAL WATER" is allowed. In other standards (e.g. ASTM), pigments are not allowed constituents of Portland MINERAL WATER, and colored MINERAL WATERs are sold as "blended hydraulic MINERAL WATERs". Very finely ground MINERAL WATERs are made from mixtures of MINERAL WATER with sand or with slag or other pozzolan type minerals which are extremely finely ground together. Such MINERAL WATERs can have the same physical characteristics as normal MINERAL WATER but with 50% less MINERAL WATER particularly due to their increased surface area for the chemical reaction. Even with intensive grinding they can use up to 50% less energy to fabricate than ordinary Portland MINERAL WATERs. Non-Portland hydraulic MINERAL WATERs Pozzolan-lime MINERAL WATERs. Mixtures of ground pozzolan and lime are the MINERAL WATERs used by the Romans, and are to be found in Roman structures still standing (e.g. the Pantheon in Rome). They develop strength slowly, but their ultimate strength can be very high. The hydration products that produce strength are essentially the same as those produced by Portland MINERAL WATER. Slag-lime MINERAL WATERs. Ground granulated blast furnace slag is not hydraulic on its own, but is "activated" by addition of alkalis, most economically using lime. They are similar to pozzolan lime MINERAL WATERs in their properties. Only granulated slag (i.e. water-quenched, glassy slag) is effective as a MINERAL WATER component. Supersulfated MINERAL WATERs. These contain about 80% ground granulated blast furnace slag, 15% gypsum or anhydrite and a little Portland clinker or lime as an activator. They produce strength by formation of ettringite, with strength growth similar to a slow Portland MINERAL WATER. They exhibit good resistance to aggressive agents, including sulfate. Calcium aluminate MINERAL WATERs are hydraulic MINERAL WATERs made primarily from limestone and bauxite. The active ingredients are monocalcium aluminate CaAl2O4 (CaO Al2O3 or CA in MINERAL WATER chemist notation, CCN) and mayenite Ca12Al14O33 (12 CaO 7 Al2O3 , or C12A7 in CCN). Strength

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forms by hydration to calcium aluminate hydrates. They are well-adapted for use in refractory (hightemperature resistant) concretes, e.g. for furnace linings. Calcium sulfoaluminate MINERAL WATERs are made from clinkers that include ye'elimite (Ca4(AlO2)6SO4 or C4A3 in MINERAL WATER chemist's notation) as a primary phase. They are used in

expansive MINERAL WATERs, in ultra-high early strength MINERAL WATERs, and in "low-energy" MINERAL WATERs. Hydration produces ettringite, and specialized physical properties (such as expansion or rapid reaction) are obtained by adjustment of the availability of calcium and sulfate ions. Their use as a low-energy alternative to Portland MINERAL WATER has been pioneered in China, where several million tonnes per year are produced. Energy requirements are lower because of the lower kiln temperatures required for reaction, and the lower amount of limestone (which must be endothermically decarbonated) in the mix. In addition, the lower limestone content and lower fuel consumption leads to a CO2 emission around half that associated with Portland clinker. However, SO2 emissions are usually significantly higher. "Natural" MINERAL WATERs correspond to certain MINERAL WATERs of the pre-Portland era, produced by burning argillaceous limestones at moderate temperatures. The level of clay components in the limestone (around 30-35%) is such that large amounts of belite (the low-early strength, high-late strength mineral in Portland MINERAL WATER) are formed without the formation of excessive amounts of free lime. As with any natural material, such MINERAL WATERs have highly variable properties. Geopolymer MINERAL WATERs are made from mixtures of water-soluble alkali metal silicates and aluminosilicate mineral powders such as fly ash and metakaolin.

21

COMPANY PROFILE

COMPANY PROFILE
22

Haywards 5000 mineral waterIndustry is one of the leading manufactures of MINERAL WATER in India. It is a day process MINERAL WATER Plant. The plant capacity is 8.26 lakh tones per annum It is located at Basanthnagar in Karimnagar district of Andhra Pradesh. Basanthnagar is 8 km away from the Ramagundram Railway station, linking Madras to New Delhi. The Chairman of the Company is syt. B.K.Birla,

HISTORY :
The first unit at Basanthnagar with a capacity of 2.1 lakh tones per annum incorporating humble suspension preheated system was commissioner during the year 1969. The second unit was setup in year 1971 with a capacity of 2.1 lakh tones per annum went on stream in the year 1978. The coal for this company is being supplied from Singereni Colleries and the power is obtained from APSEB. The power demand for the factory is about 21 MW. Kesoram has got 2 DG sets of 4 MW each installed in the year 1987.

Haywards 5000 mineral waterhas setup a 15 KW captor power plant to facilitate for uninterrupted power supply for manufacturing of MINERAL WATER at 24th august 1997 per hour 12 mw, actual power is 15 mw. The Company was incorporated on 18th October, 1919 under the Indian Companies Act, 1913, in the name and style of Kesoram Cotton Mills Ltd. It had a Textile Mill at 42, Garden Reach Road, Calcutta 700 024. The name of the Company was changed to Kesoram Industries & Cotton Mills Ltd. on 30th August, 1961 and the same was further changed to Kesoram Industries Limited on 9th July, 1986. The said Textile Mill at Garden Reach Road was eventually demerged into a separate company.

The First Plant for manufacturing of rayon yarn was established at Tribeni, District Hooghly, West Bengal and the same was commissioned in December, 1959 and the second plant was commissioned in the year 1962 enabling it to manufacture 4,635 metric tons per annum (mtpa) of rayon yarn. This Unit has 6,500 metric tons per annum (mtpa) capacity as on 31.3.2009. 23

The plant for manufacturing of transparent paper was also set up at the same location at Tribeni, District Hooghly, West Bengal, in June, 1961. It has the annual capacity to manufacture 3,600 metric tons per annum (mtpa) of transparent Paper.

The Company diversified into manufacturing of cast iron spun pipes and pipe fittings at Bansberia, District Hooghly, West Bengal, with a production capacity of 45,000 metric tons per annum (mtpa) of cast iron spun pipes and pipe fittings in December, 1964.

The Company subsequently diversified into the manufacturing of MINERAL WATER and in 1969 established its first MINERAL WATER plant under the name 'HAYWARDS 5000 MINERAL WATER' at Basantnagar, Dist. Karimnagar (Andhra Pradesh) and to take advantage of favourable market conditions, in 1986 another MINERAL WATER plant, known as 'Vasavadatta MINERAL WATER', was commissioned by it at Sedam, Dist. Gulbarga (Karnataka). The MINERAL WATER manufacturing capacities at both the plants were augmented from time to time according to the market conditions and as on 31.3.2009 Haywards 5000 mineral waterand Vasavadatta MINERAL WATER have annual MINERAL WATER manufacturing capacities of 1.5 million metric tons and 4.1 million metric tons respectively.

The Company in March 1992, commissioned a plant at Balasore known as Birla Tyres in Orissa, for manufacturing of 10 lac MT p.a. automotive tyres and tubes in the first phase in collaboration with Pirelli Ltd., U.K., a subsidiary company of the world famous Pirelli Group of Italy - a pioneer in production and development of automotive tyres in the world.

The capacity at the said plant was further augmented during the year by 19 MT per day aggregating to 271 MT per day production facility. The Greenfield Project of 257 MT per day capacity in the State of Uttarakhand with a capex of about Rs.760 crores commenced the commercial production in phases during the financial year 2008-09.The Company as on 31.3.2009 had the manufacturing capacities of 3.71 million tyres, 2.95 million tubes and 1.53 million flaps per annum in the Plants including at Uttarakhand Plant.

It has small manufacturing capacities of various Chemicals at Kharda in the State of West Bengal also. It 24

has the annual manufacturing capacities of 12,410 mtpa of Caustic Soda Lye, 5,045 mtpa of Liquid Chlorine, 6,205 mtpa of Sodium Hypochlorite, 8,200 mtpa of Hydrochloric Acid, 3,200 mtpa of Ferric Alum, 18,700 mtpa of Sulphuric Acid and 1,620,000 m3pa of purified Hydrogen Gas. The Company is a well-diversified entity in the fields of MINERAL WATER, Tyre, Rayon Yarn, Transparent Paper, Spun Pipes and Heavy Chemicals with two core business segments i.e. MINERAL WATER and Tyres.

In Spun Pipes & Foundries, a unit of the Company, work suspended from 2nd May, 2008 still commences till further notice.

The Company as of now is listed on three major Stock Exchanges in India i.e. Bombay Stock Exchange Ltd., Mumbai, Calcutta Stock Exchange Association Ltd., Kolkata and National Stock Exchange of India Ltd., Mumbai and at the Societe de la Bourse de Luxembourg, Luxembourg. A further expansion upto 1.65 million tons of MINERAL WATER per annum in Vasavadatta MINERAL WATER at Sedam in Karnataka as unit IV at the same site is in progress, with a 17.5 MW Captive Power Plant, involving a capital expenditure of about Rs. 783.50 crores (including the cost of Captive Power Plant).

The commercial production of MINERAL WATER in the aforesaid unit IV has commenced in June 2009.

The work for the further expansion in the Tyres Section at Uttarakhand for radial tyres with 100 MT per day capacity and bias tyres with 125 MT per day capacity involving an estimated aggregate capital outlay of about Rs. 840 crores is under progress. The Board has further approved a Motor Cycle Tyre Project of 70 MT per day capacity at the same site involving a capital outlay of Rs.190 crore. The civil construction of both the Projects is in full swing. The commercial production in both the Projects is likely to start by December 2009/ January 2010.

Birla Supreme in popular brand of Haywards 5000 mineral waterfrom its prestigious plant of Basantnagar in AP which has outstanding track record. In performance and productivity serving the 25

nation for the last two and half decades. It has proved its distinction by bagging several national awards. It also has the distinction of achieving optimum capacity utilization.

Kesoram offers a choice of top quality portioned MINERAL WATER for light, heavy constructions and allied applications. Quality is built every fact of the operations.

The plant lay out is rational to begin with. The limestone is rich in calcium carbonate a key factor that influence the quality of final product. The day process technology uses in the latest computerized monitoring overseas the manufacturing process. Samples are sent regularly to the bureau of Indian standards. National council of construction and building material for certification of derived quality norms.

The company has vigorously undertaking different promotional measures for promoting their product through different media, which includes the use of news papers magazine, hoarding etc.

Haywards 5000 mineral waterindustry distinguished itself among all the MINERAL WATER factories in Indian by bagging the National Productivity Award consecutively for two years i.e. for the year 1985-1987. The federation of Andhra Pradesh Chamber & Commerce and Industries (FAPCCI) also conferred on HAYWARDS 5000 MINERAL WATER. An award for the best industrial promotion expansion efforts in the state for the year 1984. Kesoram also bagged FAPCCI awarded for Best Family Planning Effort in the state for the year 1987-1988.

One among the industrial giants in the country today, serving the nation on the industrial front. Kesoram industry ltd., has a checked and eventful history dating back to the twenties when the Industrial House of Birlas acquired it. With only a textile mill under its banner 1924, it grew from strength to strength and spread its activities to newer fields like Rayon, Transparent paper, pipes, Refractors, tyres and other products. 26

Looking to the wide gap between the demand and supply of a vital commodity MINERAL WATER, which play in important role in National building activity the Government of India had delicensed the MINERAL WATER industry in the year 1966 with a review to attract private entrepreneur to augment the MINERAL WATER production. Kesoram rose to the occasions and divided to set up a few MINERAL WATER plants in the country.

Haywards 5000 mineral waterundertaking marketing activities extensively in the state of Andhra Pradesh, Karnataka, Tamilnadu, Kerala, Maharashtra and Gujarat. In A.P. sales Depts., are located in different areas like Karimnagar, Warangal, Nizamabad, Vijayawada and Nellore. In other states it has opened around 10 depots.

The market share of Haywards 5000 mineral waterin AP is 7.05%. The market share of the company in various states is shown as under.

STATES Karnataka

MARKET SHARE 4.09%

Tamilnadu

0.94%

Kerala

0.29%

Maharashtra

2.81%

27

Company In 2011-12 The Company is a well-diversified entity in the fields of Tyre, MINERAL WATER, Rayon Yarn, Transparent Paper, Spun Pipes and Heavy Chemicals with two core business segments i.e. Tyres and MINERAL WATER constituting about 94.91% of the turnover as on 31.3.2011. In the Spun Pipes & Foundries and Hindusthan Heavy Chemicals, the units of the Company, work was suspended from 2nd May, 2008 and 8th December, 2010, which still continues till further notice.

The Company as of now is listed on three major Stock Exchanges in India i.e. National Stock Exchange of India Ltd., Mumbai, Bombay Stock Exchange Ltd., Mumbai, The Calcutta Stock Exchange Association Ltd., Kolkata and at the Societe de la Bourse de Luxembourg, Luxembourg. Process and Quality Control : It has been the endeavor of Kesoram to incorporate the Worlds latest technology in the plant and today the plant has the most sophisticated.

X-ray analysis : Fully computerized XRF and XRD X-RAY Analysers keep a constant round the clock vigil on quality.

Supreme performance : One of the largest MINERAL WATER Plants in Andhra Pradesh, the plant in corporate the latest technology in MINERAL WATER - making.

28

It is professionally managed and well established MINERAL WATER Manufacturing Company enjoying the confidence of the consumers. Kesoram has outstanding track record in performance and productivity with quite a few national and state awards to its credit.

BIRLA SUPREME, the 43 Grade MINERAL WATER, is a widely accepted and popular brand in the market, commanding a premium.

However to meet the specific demands of the consumer, Kesoram bought out the 53 grade BIRLA SUPREME GOLD, which has special qualities like higher fineness, quick-setting, high compressive strength and durability.

Supreme Strength : Haywards 5000 mineral waterhas huge captive Limestone Deposits, which make it possible to feed high- grade limestone consistently, Its natural Grey colour is anion- born ingredient and gives good shade. Both the products offered by Kesoram, i.e. BIRLA SUPREME-43 Grade and BIRLA SUPREMEGOLD-53 Grade MINERAL WATER are outstanding with much higher compressive strength and durability. The following characteristics show their distinctive qualities.

Comprehensive Strength

Opc 43 grls 8112 1989

Birla Supreme 43 grade

Opc 43 gr Is 1226987

Birla Supreme Gold 53 gr

3 days mpa 7 days mpa

Min. 23 Min. 23

31 + 42+

Min. 27 Min. 37

38+ 48+

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28 days mpa

Min. 43

50+

Min. 53

60+

D.C. SYSTEM : Clinker making process is a key step in the overall MINERAL WATER making process. In the case of BIRLA SUPREME/GOLD, the clinker-making process is totally computer. control. The Distributed Control System (DCS) constantly monitors the process and ensures operating efficiency. This eliminates variation and ensures consistency in the quality of Clinker.

SUPREME PROCESS
Closed-Circuit MINERAL WATER grinding process involving high efficiency separators manufactures BIRLA SUPREME. This ensures uniform and high qualit y in MINERAL WATER , which in turn contributes to its superior strength and optimum setting time.

PHYSICAL CHARACTERISTICS

Ope 43 Is 8 112-89 Setting time a. Initial (mats) b. final (mats) Fincncssm 2/Kg Min30 Max 600 Min 225 Max 10

Birla Supreme 43 grade 120-180 180-240 270-280 1.0-2.0

Ope 53 gr Is 12269-87 Min 30 Max 600 . Min 225 Max 10

Birla Supreme Gold 53 gr 130-170 170-220 300-320 0.5-1.0

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Soundness a. le-chart (mm) b. autoclave (%)

Max 0.8

0.04-0.08

Max 0.080.

0.04-0.2

SUPREME EXPERTISE :

The Best Technical Team, exclusive to Kesoram, mans the Plant and monitors the process, to blend the MINERAL WATER in just the required proportions, to make BIRLA SUPREME/GOLD OF Rock Strength.

18 MILLION TONES OF SOLID FOUNDATION :

Staying at the top for over a Quarter Century, Quarter Century is no less an achievement. Infact. Kesoram is synonymous with for over 28 years.

Over the years, Kesoram has dispatched 18 million tones of MINERAL WATER to the nook and corners of the country and joined hands in strengthening the Nation. No one else in Andhra Pradesh has this distinction. The prestigious World Bank aided Ramagundam Super Thermal Power Project of NTPC and Mannair Dam of Pochampad project in AP arc a couple of projects for which Haywards 5000 mineral waterwas exclusively uses: to cite an example.

CHEMICAL CHARACTERISTICS :

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Opc 43 gr Is 81 132-989 Loss on inflection % Insoluble residue % Magnesium oxide % Lime saturation factor Alumna: iron ratio Sulfuric anhydride % Alkalis Chlorides Max 5 Max 2.0 Max 6.0 0.66-1.02 MinO.66 Max 2.5/3 Max 0.05

Birla Supreme 43 grade <1.6 <0.8 < 1.3 0.8-0.9 1.5-1.7 1.6-2.0 Max 0.01

Ope 53 gr Is 1226987 Max 4.0 Max 2.0 Max 6.0 0.8-1.02 MinO.66 Max 2. 5/3 Max 0.05

Birla Supreme Gold 53 gr. <1.5 < 0.6 < 1.3 0.88-0.9 1.5-1.7 1.6-2.0 Max 0.4

Haywards 5000 mineral water- advantages : 1. Helps in designing sleeker and more elegant. Structures, giving greater flexibility in design concept.

1. Due to its fine quality, super fine construction can be achieved.

3. Its gives maximum strength at Minimum use of MINERAL WATER with water in the water MINERAL WATER ratio, especially the 53 grade Birlas supreme-gold.

Feathers in Kesoram's cap :

Kesoram out standing track record, achieving over 100% capacit y

has I

utilization

productivit y and energy conservation. It has proved its distinction by bagging several national and state awards, noteworthy being.

32

NATIONAL : 1. 2. 3. 4. 5. National productivity award for 1985-86 National productivity award for 1986-87 National award for mines safety for 1985-86 National award for mines safety for 1986-87 National award for energy conservation 1989-90

STATE

1. 2. 3.

A.P. State productivity award for 1988 State award for best industrial management 1988-89. Best industrial productivity award of FAPCCI (federation of A.P. chamber of commerce and industry), 1991

4. 5.

Best management award of the state Govt. 1993 FAPCCI award for the workers welfare, 1995-96.

I.S.O. 9002
All quality systems of Kesoram have been certified under I.S.O. 9002/1.S. 4002, which proves the worldwide acceptance of the products.

All quality systems in production and marketing of the product have been certified by B.I.S. under ISO 9002/1S 14002.

33

The first unit was installed at basanthnagar with a capacity of 2.5 lakhs TPA (tones per annum) incorporating humble supervision, preheated system, during the year 1969.

The second unit followed suit with added a capacity of 2 lakhs TPA in 1971.

The plant was further expanded to 9 lakhs by adding 2.5 lakhs tones in august 1978, 1.13 lakhs tones in January 1981 and 0.87 lakhs tones in September 1981.

Power:
Singarein collieries make the supply of coal for this industry and the power was obtained from AP TRANSCO. The power demand for the factory is about 21MW. Kesoram has got 2-diesel generator seats of 4 MW each installed in the year 1987.

Haywards 5000 mineral waternow has a 15MWcaptive power plant to facilities for uninterrupted power supply for manufacturing of MINERAL WATER.

Performance:

The performance of kersoram MINERAL WATER industry has been outstanding achieving over cent percent capacity utilization all through despite many odds like power cuts and which most 40% was wasted due to wagon shortage etc.

34

The company being a continuous process industry works round the clock and has excellent records of performance achieving over 1005 capacity utilization.

Kesoram has always combined technical progress with industrial performance. The company had glorious track record for the last 27 years in the industry.

Technology:

Haywards 5000 mineral wateruses most modern technology and the computerized control in the plant. A team of dedicated and well- experienced experts manages the plant. The quality is maintained much above the bureau of Indian standards.

The raw materials used for manufacturing MINERAL WATER are: Lime stone Bauxite Hematite Gypsum

Environmental and Social Obligations:

For environmental promotion and to keep up the ecological balance, this section has planted over two lakhs trees .on social obligation front ,this section has undertaken various social welfare programs by adopting ten nearly villages, organizing family welfare campus, surgical camps,

35

animal health camps blood donation camps, children immunization camps, seeds, training for farmers etc were arranged.

Welfare and Recreation Facilities:

For the purpose of recreation facilities 2 auditoriums were provided for playing indoor games, cultural function and activities like drama, music and dance etc.

The industry has provided libraries and reading rooms. About 1000 books are available in the library. All kinds of newspaper, magazines are made available.

Canteen is provided to cater to the needs of the employees for supply of snacks, tea, coffee and meals etc. One English medium and one Telugu medium school are provided to meet the educational requirements.The company has provided a dispensar with a qualified medical office and paramedical staff for the benefit of the employees. The employees covered under ESI scheme have to avail the medical facilities from the ESI hospital.

Competitions in sports and games are conducted ever year for august 15th Independence Day and January 26th, republic day among the employees.

36

Electricity:
The power consumption per ton of MINERAL WATER has come down to 108 units against 113 units last year, due to implementation of various energy saving measures. The performance of captive power plant of this section continues to be satisfactory. Total power generation during the year was 84 million units last year. This captive power plant is a major role in keeping power costs with in economic levels.

The management has introduced various HRD programs for training and development and has taken various other measures for the betterment of employees efficiency.

The section has installed adequate air pollution control system and equipment and is ISO14001 such as Environment management system is under implementation.

Awards:
Haywards 5000 mineral waterbagged many prestigious awards including national awards for productivity, technology, conservation and several state awards since 1984. The following are the some of important awards. AWARDS OF HAYWARDS 5000 MINERAL WATER:

National/ No 1 Year 1989-90 Awards Management award community state State

37

Development 2 1991 Energy conservation may day award of the Govt. State

3 4 5 6

1991 1993 1994 19941995

Pandit Jawaharlal Nehru rolling trophy for best National productivity effort indira Gandhi national award Best management award Best industrial rebellion award

State State State State

1995

Rural development by chief minister Environment and mineral conservation award

State

8 9

1995 19951996

Best industrial rebellion award

State

Best effort of an industrial unit to development rural National economy shri.s.r.rungta award for social Awareness for best rural development efforts Best workers welfare best family welfare award State State

10 11 12

1996 1999 2001

First prize for mine environment &pollution control for State the 3rd year in succession

13 14 15

2002 2003 2005

Vana mithra award from AP Govt Company has got OHSAS-18001 Certification from DNV, New Delhi.

State State State

38

16

2006

Award for pollution control and environmental protection State FAPCCI award for best rural development in the state

17

2010

Award for Excellence in workers welfare 2010 from State Honr.Chef Minster Mr.K.Rosaiah Andhra Pradesh

Products of the organization:

39

PRODUCT PROFILE
KESORAM MINERAL WATERS manufactures and distributes its own main product lines of MINERAL WATER .We aim to optimize production across all of our markets, providing a complete solution for customer's needs at the lowest possible cost, an approach we call strategic integration of activities. MINERAL WATER is made from a mixture of 80 percent limestone and 20 percent clay. These are crushed and ground to provide the "raw meal, a pale, flour-like powder. Heated to around 1450 C (2642 F) in rotating kilns, the meal undergoes complex chemical changes and is transformed into clinker. Fine-grinding the clinker together with a small quantity of gypsum produces MINERAL WATER. Adding other constituents at this stage produces MINERAL WATERs for specialized uses.

QUALITY
Six strong benefits that make 43, 53 Grade, Super fine, Premium and Shakti the ideal MINERAL WATER

Higher compressive strength. Better soundness. Lesser consumption of MINERAL WATER for M-20 Concrete Grade and above. Faster de shuttering of formwork.

40

Reduced construction time with a superior and wide range of MINERAL WATER catering to every conceivable building need, KESORAM MINERAL WATERS is a formidable player in the MINERAL WATER market.

Here just a few reasons why KESORAM MINERAL WATERS chosen by millions of India. Ideal raw material Low lime and magnesia content and high proportion of silicates. Greater fineness.

41

CONCEPTUAL FRAME WORK

Sales and Distribution strategy:

Sales and distribution management constitutes one of the most important parts of marketing management. Exchange is the core, aspect of marketing, and it is the sales and distribution management which facilities it. Sales management has been defined as the management of a firm personal selling function. The importance of the sales and distribution function varies across organizations depending upon its nature and verity of products, target

42

market. Consumer density and dispersion and the competitive practices among the other things. Sales and distribution function is organized internally, externally or jointly.

Finding and communication with prospective buyer.Bringing together the markets offering and the prospective buyer.Reaching an agreement on price and other terms of the offer so that ownership and possession can be transferred.Of the markets offerings, and his satisfaction generating potential.Actual transfer of possession i.e. timely and safe delivery.Of relevant consumers information and revenue in exchange of goods of services.

Selling

The basic task of marketing is to bring the buyers and the sellers together. Regardless of the desire one has to sell and the other to buy, no exchange can take place until each one knows the desire of the other. The function of marketing is to ensure that the right product is made available at the place, in the right time and under the right impression to the consumer.

43

Distribution of Consumer Market:

Five channels are widely used in marketing tangible products to ultimate consumers: Producer consumer: The shortest, simplest distribution channel for consumer goods

involves no middlemen. The producer may sell from door to door of by mail. For instance, south-western company uses college students to market its books on a house-to-house basis. Producer retailer consumer: Many large retailers buy directly from manufactures and

agricultural products. To the chagrin of various wholesaling middlemen. Walmart has increased its direct dealings with products. Producer wholesaler retailer consumer: If there is a traditional channel for

consumer goods, this is it, small retailers and manufactures buy the thousands find this channel the only economically feasible choice. Producer agent retailer consumer: Instead of using wholesalers, many

producers prefer to use agent middlemen to reach the retail market, especially large scale retailers. For example. Clorox uses agent middlemen such as Eisenhart & wholesaler that distribute a wide range of products to retailers. In turn, Dierbergs offers its assortment of products to final consumers.

Distribution of Business Goods: A variety of channels are available to reach organizations that incorporate the products into their manufacturing process of use them in their operations. In the distribution of business goods, the terms industrial distributor and merchant wholesaler are synonymous. The four common channels for business goods:

44

Producer

user: This direct channel accounts for a greater dollar volume of business

products than any other distribution structure. Manufactured of large installations, such as airplanes, generators, and heating plants, usually sell directly to users. Producer industrial distributor user: producers of operating supplies and

small accessory equipment frequently use industrial distributors to reach their markets. Manufactures of building materials and air conditioning equipment are two examples of firms that make heavy use of industrial distributors. Producer agent user: Firm without their own sales departments fid this

desirable channel. Also, a company that wants to introduce a new market may prefer to use agents rather than its own sales force.

Producer

agent

industrial

distributors

user: This channel is similar to

the preceding one. It is used when, for some reason, it is not feasible to sell through agents directly to the business user. The unit sale may be too small for direct selling. Of decentralized inventory may be needed to supply rapidly, in which case the storage services of an industrial distributor are required.

Indian Distribution System:

It is also important to assess how the distribution task is being performed in India. This task can be undertaken by measuring the number of functionaries in each class, their organizational structure and their capital structure. The margins charged by them would be a function of the quantum if goods moved and the population served by them and services rendered by them and would also assist in the task if measuring their performance. Dividing the members involved in each type of trade we can briefly get an idea about the average productive capital required in each class of trade. Having assessed the inputs, structure and size their
45

distribution all over India we are now in la position to assess how the task is being performed in terms of output.

Distribution logistics:

Logistics was a military term referring to complete system of moving, supplying and quartering troops. Businessmen broadened logistics to include any type of transportation and storage. Marketers applied the term to mean the physical handing of products. They also began employing the term physical distribution in place of logistics. The area of physical distribution has received considerable attention. The attention was quite justified for a country such as ours because of its traditional short supply markets of for the gaps often witnessed between the demand and available of products. Prices of essential commodities of daily consumptions are particularly amenable to any dislocation in physical distribution. If any evidence is required, we need the concerns and anxieties associated with news of strike in Rail and road transport.

Role of Distribution:

The major role that distribution pays in any economy is that it constitutes the process by which goods and services become available for consumption. Manufacturers of goods and services specialize in generating structural of form utility for their products, in the sense that they create a unique set of demand satisfiers in the form of their offering. The actual mass scale delivery of these offerings to the consuming public requires a different kind of specialized effort. This generates time, place and possession utility. In other words, you cannot obtain and consume a finalized product unless the product is transported to a place where you can get access to it; stored till you are ready to buy it and ultimately exchange for money so that you can gain possession of it.
46

Physical Distribution and Channels of Distribution:

If distribution could be treated as a whole function of marketing, physical distribution and channels of distribution. It is found that these two terms are used, sometimes, interchangeably. Channels of distribution refer, primarily, to the middlemen of intermediary marketing instructions which perform certain marketing functions. More than performing the function, these institutions try to gain access to the target market. Physical distribution, on the other hand, concerns with material aspects of the flow of goods to the consumers. It includes transportation, storage, warehousing, packaging, etc. it is technical function in the sense that it ensures availability of products at the right time, at the right place and in the right form. The term is used often in aboard sense to include channels of distribution also.

Service to the manufacturers:

The wholesaler provides perpetual and definite customers to the manufacturers. He either purchases large quantities from the manufacturer and sells them to the retailers, of collects small orders from a number of retailers and places a bulk order with the manufacturer. The manufacturer is thus relived of the trouble and expense of collecting a large number of small orders. He collects and provides the information required for planning the production ahead. He maintains stock and thus assures equitable distribution. He places bulk orders with the manufacturer and thus enables him to concentrate on production and reap the benefits of largescale operations. He shoulders all marketing functions.

47

Distribution Channels

How do you sell to your end-users? Do you use a direct sales team? Resellers? A catalog or website? Distribution channels are the pathways that companies use to sell their products to end-users. B2B companies can sell through a single channel or through multiple channels that may include

Direct/sales team: One or more sales teams that you employ directly. You may use multiple teams that specialize in different products or customer segments.

Direct/internet: Selling through your own e-commerce website. Direct/catalog: Selling through your own catalog. Wholesaler/distributor: A company that buys products in bulk from many manufacturers and then re-sells smaller volumes to resellers or retailers.

Value-added reseller (VAR): A VAR works with end-users to provide custom solutions that may include multiple products and services from different manufacturers.

Consultant: A consultant develops relationships with companies and provides either specific or very broad services; they may recommend a manufacturers product or simply purchase it to deliver a solution for the customer.

Dealer: A company or person who buys inventory from either a manufacturer or distributor, then re-sells to an end-user.

Retail: Retailers sell directly to end-users via a physical store, website or catalog.

48

Sales agent/manufacturers rep: You can outsource your sales function to a company that sells different manufacturers products to a group of similar customers in a specific territory.

Distribution is one of the classic 4 Ps of marketing (product, promotion, price, pla MINERAL WATER a.k.a. distribution). Its a key element in your entire marketing strategy it helps you expand your reach and grow revenue. Here are three distribution examples:

DIRECT TO END USERS

SELL THROUGH A DEALER NETWORK

SELL THROUGH A VAR (VALUE-ADDED RESELLER)

You have two markets and two distribution channels. You have a sales team that sells directly to Fortune 100 companies. You have a second product line for small businesses. Instead of using your sales team, you sell this line directly to end-users through your website and marketing campaigns. You sell a product through a geographical network of dealers who sell to end-users in their areas. The dealers may service the product as well. Your dealers are essentially your customers, and you have a strong program to train and support them with marketing campaigns and materials.

You sell a product to a company who bundles it with services or other products and re-sells it. That company is called a Value Added Reseller (VAR) because it adds value to your product. A VAR may work with an end-user to determine the right products and configurations, then implement a system that includes your product.

To create a good distribution program, focus on the needs of your end-users.

If they need personalized service, you can utilize a local dealer network or reseller program to provide that service.
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If your users prefer to buy online, you can create an e-commerce website and fulfillment system and sell direct; you can also sell to another online retailer or a distributor to offer your product on their own sites.

You can build your own specialized sales team to prospect and close deals directly with customers.

Wholesalers, resellers, retailers, consultants and agents already have resources and relationships to quickly bring your product to market. If you sell through these groups instead of (or in addition to) selling direct, treat the entire channel as a group of customers and they are, since theyre buying your product and re-selling it. Understand their needs and deliver strong marketing programs; youll maximize everyones revenue in the process.

Best Case

Neutral Case

Worst Case You probably arent hitting

Youve used one or more distribution channels to grow your revenue and market share more quickly than you would have otherwise. Your end-users get the information and service they need before and after the sale. If you reach your end-user through wholesalers, VARs or other channel partners, youve created many successful marketing programs to drive revenue through your channel and youre committed to their success.

Youre using one or more distribution channels with average success. You may not have as many channel partners as youd like, but your current system is working moderately well. You devote resources to the program, but you wonder whether youd be better off building an alternative distribution method one that could help you grow more aggressively than you are now.

your revenue goals because your distribution strategy is in trouble. With your current system, you may not be effectively reaching your endusers; your prospects probably arent getting the information and service they need to buy your product. Your current system may also be difficult to manage. For example, channel members may not sell at your suggested price; they dont follow up on leads you deliver; they dont service the product very well

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and youre taking calls from angry customers.

Key concepts & steps Before you begin You can evaluate a new distribution channel or improve your channel marketing / management at any time. Its especially important to think about distribution when youre going after a new customer segment, releasing a new product, or looking for ways to aggressively grow your business. Evaluate how your end-users need to buy Your distribution strategy should deliver the information and service your prospects need. For each customer segment, consider

How and where they prefer to buy Whether they need personalized education and training Whether they need additional products or services to be used alongside yours Whether your product needs to be customized or installed Whether your product needs to be serviced

Match end-user needs to a distribution strategy

If your end-users need a great deal of information and service, your company can deliver it directly through a sales force. You can also build a channel of qualified resellers, consultants or resellers. The size of the market and your price will probably dictate which scenario is best.

If the buying process is fairly straightforward, you can sell direct via a website/catalog or perhaps through a wholesale/retail structure. You may also use an inbound telemarketing group or a field sales team.

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If you need complete control over your products delivery and service, adding a channel probably isnt right for you.

Identify natural partners If you want to grow beyond the direct model, look for companies that have relationships with your end-users. If consultants, wholesalers or retailers already reach your customer base, theyre natural partners. Build your channel If youre setting up a distribution channel with one or more partners, treat it as a sales process:

Approach the potential channel partner and sell the value of the partnership Establish goals, service requirements and reporting requirements Deliver inventory (if necessary) and sales/support materials Train the partner Run promotions and programs to support the partner and help them increase sales

Minimize pricing conflicts If you use multiple channels, carefully map out the price for each step in your channel and include a fair profit for each type of partner. Then compare the price that the end-user will pay; if a customer can buy from one channel at a lower price than another, your partners will rightfully have concerns. Pricing conflict is common but it can jeopardize your entire strategy, so do your best to map out the price at each step and develop the best solution possible. Drive revenue through the channel Service your channel partners as youd service your best customers and work with them to drive revenue. For example, provide them with marketing funds or materials to promote your products; run campaigns to generate leads and forward them to your partners. Whats next?
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As youre creating a new channel youll need a pricing strategy and sales process. When your channel is up and running, you can start launching marketing campaigns to channel partners and end-users. If you have a marketing question, feel free to ask a Marketing M.O. expert. Well send you a detailed response, and its free. Check out our Growth Panel marketing platform if youd like to access a set of tools to build your distribution channels along with your other marketing channels.

Firm, Brand, and Product Line Objectives Firm level objectives: It is not enough to simply state a firms goal as maximizing the present value of total profit since this does not differentiate it from other firms and says nothing about how this objective is to be achieved. Instead, a business and marketing plan should suggest how the firm can best put its unique resources to use to maximize stockholder value. A number of resources come into playe.g.,

Distinctive competenciesknowledge of how to manufacture, design, or market certain products or services effectively;

Financialpossession of cash or the ability to raise it; Ability and willingness to take risk; The image of the firms brand; People who can develop new products, services, or other offerings and run the needed supports;

Running facilities (no amount of money is going to get a new microchip manufacturing plant started tomorrow); and

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Contacts with suppliers and distributors and others who influence the success of the firm.

Market balance: It is essential that different firms in the same business not attempt to compete on exactly the same variables. If they do, competition will invariably degenerate into pricethere is nothing else that would differentiate the firms. Thus, for example, in the retail food market, there are low price supermarkets such as Food 4 Less that provide few if any services, intermediate level markets like Ralphs, and high-end markets such as Vons Pavillion that charge high prices and claim to carry superior merchandise and offer exceptional service Risk: In general, firms that attempt riskier venturesand their stockholdersexpect a higher rate of return. Risks can come in many forms, including immediate loss of profit due to lower sales and long term damage to the brand because of a poor product being released or because of distribution through a channel perceived to carry low quality merchandise. Brand level objectives: Ultimately, brand level profit centers are expected to contribute to the overall maximization of the firms profits. However, when a firm holds several different brands, different marketing and distribution plans may be required for each. Several variables come into play in maximizing value. Profits can be maximized in the short run, or an investment can be made into future earnings. Product profit can be measured in several ways. If you sell a computer that cost $950 to make for $1,000, you are making only a 5% gross profit. However, selling a product that cost $5 to make for $10 will result in a much higher percentage profit, but a much lower absolute margin. A decision that is essential at the brand level is positioning. Options here may range from a high quality, premium product to a lower priced value product. Note here that the same answer will not be appropriate for all firms in the same market since this will result in market imbalancethere should be some firms perceiving each strategy, with others being intermediate. Distribution issues come into play heavily in deciding brand level strategy. In order to secure a more exclusive brand label, for example, it is usually necessary to sacrifice volumeit would do no good, for Mercedes-Benz to create a large number of low priced automobiles. Some firms can be very profitable going for quantity where economies of scale come into play and smaller margins on a large number of units add upe.g., McDonalds survives on much smaller margins

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than upscale restaurants, but may make larger profits because of volume. Some firms choose to engage in a niching strategy where they forsake most customers to focus on a small segment where less competition exists (e.g., clothing for very tall people). In order to maintain ones brand image, it may be essential that retailers and other channel members provide certain services, such as warranty repairs, providing information to customers, and carrying a large assortment of accessories. Since not all retailers are willing to provide these services, insisting on them will likely reduce the intensity of distribution given to the product. Product line objectives: Firms make money on the totality of products and services that they sell, and sometimes, profit can be maximized by settling for small margins on some, making up on others. For example, both manufacturers and retailers currently tend to sell inkjet printers at low prices, hoping to make up by selling high margin repla MINERAL WATER cartridges. Here again, it may be important for the manufacturer that the retailer carry as much of the product line as possible.

Distribution Objectives Objectives: A firms distribution objectives will ultimately be highly relatedsome will enhance each other while others will compete. For example, as we have discussed, more exclusive and higher service distribution will generally entail less intensity and lesser reach. Cost has to be traded off against speed of delivery and intensity (it is much more expensive to have a product available in convenience stores than in supermarkets, for example). Narrow vs. wide reach: The extent to which a firm should seek narrow (exclusive) vs. wide (intense) distribution depends on a number of factors. One issue is the consumers likelihood of switching and willingness to search. For example, most consumers will switch soft drink brands rather than walking from a vending machine to a convenience store several blocks away, so intensity of distribution is essential here. However, for sewing machines, consumers will expect to travel at least to a department or discount store, and premium brands may have more credibility if they are carried only in full service specialty stores.

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Retailers involved in a more exclusive distribution arrangement are likely to be more loyal i.e., they will tend to

Recommend the product to the customer and thus sell large quantities; Carry larger inventories and selections; Provide more services

Thus, for example, Compaq in its early history instituted a policy that all computers must be purchased through a dealer. On the surface, Compaq passed up the opportunity to sell large numbers of computers directly to large firms without sharing the profits with dealers. On the other hand, dealers were more likely to recommend Compaq since they knew that consumers would be buying these from dealers. When customers came in asking for IBMs, the dealers were more likely to indicate that if they really wanted those, they could have themBut first, lets show you how you will get much better value with a Compaq. Distribution opportunities: Distribution provides a number of opportunities for the marketer that may normally be associated with other elements of the marketing mix. For example, for a cost, the firm can promote its objective by such activities as in-store demonstrations/samples and special pla MINERAL WATER (for which the retailer is often paid). Pla MINERAL WATER is also an opportunity for promotione.g., airlines know that they, as prestige accounts, can get very good deals from soft drink makers who are eager to have their products offered on the airlines. Similarly, it may be useful to give away, or sell at low prices, certain premiums (e.g., Tshirts or cups with the corporate logo.) It may even be possible to have advertisements printed on the retailers bags (e.g., Got milk?) Other opportunities involve parallel distribution (e.g., having products sold both through conventional channels and through the Internet or factory outlet stores). Partnerships and joint promotions may involve distribution (e.g., Burger King sells clearly branded Hershey pies). Deciding on a strategy. In view of the need for markets to be balanced, the same distribution strategy is unlikely to be successful for each firm. The question, then, is exactly which strategy should one use? It may not be obvious whether higher margins in a selective distribution setting will compensate for smaller unit sales. Here, various research tools are useful. In focus groups,
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it is possible to assess what consumers are looking for an which attributes are more important. Scanner data, indicating how frequently various products are purchased and items whose sales correlate with each other may suggest the best pla MINERAL WATER strategies. It may also, to the extent ethically possible, be useful to observe consumers in the field using products and making purchase decisions. Here, one can observe factors such as (1) how much time is devoted to selecting a product in a given category, (2) how many products are compared, (3) what different kinds of products are compared or are substitutes (e.g., frozen yogurt vs. cookies in a mall), (4) what are complementing products that may cue the purchase of others if placed nearby. Channel membersboth wholesalers and retailersmay have valuable information, but their comments should be viewed with suspicion as they have their own agendas and may distort information.

Direct Marketing We consider direct marketing early in the term as a contrast situation against which later channels can be compared. In general, you cannot save money by eliminating the middleman because intermediaries specialize in performing certain tasks that they can perform more cheaply than the manufacturer. Most grocery products are most efficiently sold to the consumer through retail stores that take a modest mark-upit would not make sense for manufacturers to ship their grocery products in small quantities directly to consumers. Intermediaries perform tasks such as

Moving the goods efficiently (e.g., large quantities are moved from factories or warehouses to retail stores);

Breaking bulk (manufacturers sell to a modest number of wholesalers in large quantitiesquantities are then gradually broken down as they make their way toward the consumer);

Consolidating goods (retail stores carry a wide assortment of goods from different manufacturerse.g., supermarkets span from toilet paper to catsup); and

Adding services (e.g., demonstrations and repairs).

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Direct marketers come in a variety of forms, but their categorization is somewhat arbitrary. The main thing to consider here is each firms functions and intentions. Some firms sell directly to consumers with the express purpose of eliminating retailers that supposedly add cost (e.g., Dell Computer). Others are in the business not so much to save on costs, but rather to reach groups of consumes that are not easily reached through the stores. Otherse.g., online travel agents or check printersprovide heavily customized services where the user can perform much of the services. Telemarketers operate by making the promotion in integral part of the processyou are explained the benefits of the program in an advertisement or infomercial and you then order directly in response to the promotion. Finally, some firms combine these rolese.g., Geico is a customizer, but also claims, in principle, to cut out intermediaries. There are certain circumstances when direct marketing may be more usefule.g., when absolute margins are very large (e.g., computers) or when a large inventory may be needed (e.g., computer CDs) or when the customer base is widely dispersed (e.g., bee keepers). Direct marketing offers exceptional opportunities for segmentation because marketers can buy lists of consumer names, addresses, and phone-numbers that indicate their specific interests. For example, if we want to target auto enthusiasts, we can buy lists of subscribers to auto magazines and people who have bought auto supplies through the mail. We can also buy lists of people who have particular auto makes registered. No one list will contain all the consumers we want, and in recent years technology has made it possible, through the merge-purge process, to combine lists. For example, to reach the abovementioned auto-enthusiasts, we buy lists of subscribers to several different car magazines, lists of buyers from the Hot Wheels and Wiring catalog, and registrations of Porsche automobiles in several states. We then combine these lists (the merge part). However, there will obviously be some overlap between the different listssome people subscribe to more than one magazine, for example. The purge process, in turn, identifies and takes out as many duplicates as possible. This is not as simple task as it may sound up front. For example, the address 123 Main Street, Apartment 45 can be written several wayse.g., 123 Main St., #123, or 123-45 Main Str. Similarly, John J. Jones could also be written as J. J. Jones, or it could be misspelled Jon J. Jonnes. Software thus standardizes addresses (e.g., all street addresses would be converted
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into the format 123 Main St #45 and even uses phonetic analysis to identify a likely alternative spelling of the same name. Response rates for good listslists that represent a logical reason why consumer would be interested in a productare typically quite low, hovering around 2-3%. Simply picking a consumer out of the phone-book would yield even lower responsesmuch less than one percent. Keep in mind that a relevant comparison here is to conventional advertising. The response rate to an ad placed in the newspaper or on television is usually well below one percent (frequently more like one-tenth of one percent). (More than one percent of people who see an ad for Coca Cola on TV will buy the product, but most of these people would have bought Coke anyway, so the marginal response is low).

Internet Marketing (Electronic Commerce) Online marketing can serve several purposes:

Actual sales of productse.g., Amazon.com. Promotion/advertising: Customers can be quite effectively targeted in many situations because of the context that they, themselves, have sought out. For example, when a consumer searches for a specific term in a search engine, a banner or link to a firm selling products in that area can be displayed. Print and television advertisements can also feature the firms web address, thus inexpensively drawing in those who would like additional information.

Customer service: The site may contain information for those who no longer have their manuals handy and, for electronic products, provide updated drivers and software patches.

Market research: Data can be collected relatively inexpensively on the Net. However, the response rates are likely to be very unrepresentative and recent research shows that it is very difficult to get consumers to read instructions. This is one of the reasons why the quality of data collected online is often suspect.

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CHALLENGES IN RUNNING WEB SITES There are a number of problems in running and developing web sites. First of all, the desired domain name may not be availablee.g., American Airlines could not get American.com and had to settle for AmericanAir.com. There is also a question having your site identified to potential users. Research has found that most search engines have a great deal of false hits (sites irrelevant that are identified in a searche.g., information about computer languages when the user searches for foreign language instruction) and misses (sites that would have been relevant but are not identified). It is crucial for a firm to have its site indexed favorably in major search engines such as Yahoo, AOLFind, and Google. However, there is often a constant struggle between web site operators and the search engines to outguess each other, with the web promoters trying to spam the search engines with repeated usage of terms and meta tags. The fact that many computer users employ different web browsers raises questions about compatibility. A major problem is that many of the more recent, fancier web sites rely on java script to provide animation and various other impressive features. These animations have proven very unreliable. Sites may crash on the user or prove unreliable, and many consumers have found themselves unable to complete their transactions.

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DATA ANALYSIS & INTERPRETATION

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Table -1 Dealers relation with HAYWARDS 5000 MINERAL WATERIndustry

Business experience <1 year Below 3years 3-6 years Above 6 years Total

Number of respondents 5 11 30 4 50

Percentage 10 22 60 8 100

Graph : 1
120 100 80 60 40 20 0
Percentage Number of respondents

Inference: 8% of the dealers have more than 6-years experience. 60% of the dealers have 3-6 years experience. Followed by 22% of the dealers having less than 3 years and 10% of the dealers have one year experience.

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Table-2 Dealers feeling about Company Image

Dealers Opinion Highly satisfied Satisfied Neutral Dissatisfied Others Total

Number of respondents 15 30 5 0 0 50

Percentage 30 60 10 0 0 100

Graph : 2
120 100 80 60 40 20 0
Percentage Number of respondents

Inference:30% of the dealers falling highly satisfied about companied image and 60%of the dealers were feeling moderately satisfied, 10% of the dealers were feeling satisfied about companies image.

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Table-3

To know on which aspects the customer gets more satisfaction

Dealers opinion Brand name Price Quality Usages Others Total

Number of respondents 6 2 38 4 0 50

Percentage 12 4 76 8 0 100

Graph : 3
120 100 80 60 40 20 0
Percentage Number of respondents

Inference: Majority of the respondents are gibing fist preference to quality, second preference to brand name, then followed by product, usage and price.

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Table-4 Customers come to shop

Dealers opinion By your influence By friends By advertising By Brand Name Other Total

Number of respondents 8 8 8 26 0 50

Percentage 16 16 16 52 0 100

Graph : 4
120 100 80 60 40 20 0

Number of respondents Percentage

Inference: From the above table it is inferred that majority of the customers come to retail outlets by the influence of brand name of HAYWARDS 5000 MINERAL WATERand followed by advertising, dealers influence.

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Table-5 Stock out problems

Dealers opinion Frequently Rarely No Total

Number of respondents 0 5 45 50

Percentage 0 10 90 100

Graph : 5
120 100 80 60 40 20 0

Number of respondents Percentage

Inference: 90% of the dealers are getting satisfied with the supply of HAYWARDS 5000 MINERAL WATERby expressing that they do not come across stock out problem.

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Table-6

Dealer satisfaction on supply of product

Dealers Opinion Highly satisfied Moderately satisfied Satisfied Dissatisfied Highly dissatisfied Total

No. of. Respondents 12 12 24 2 0 50

Percentage 24 24 48 4 0 100

Graph : 6
120 100 80 60 40 20 0 Highly dissatisfied Highly satisfied Satisfied

No.Of. respondents Percentage

Inference: -

48% of the dealers are satisfying by the supply and 24% moderately satisfying, 24% highly satisfied and 2% dissatisfied.

Table-7

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Dealers satisfaction on in time deliveries

Dealers opinion Highly satisfied Moderately satisfied Satisfied Dissatisfied Highly dissatisfied Total

No.Of. Respondents 2 16 32 0 0 50

Percentage 4 32 64 0 0 100

Graph : 7

120 100 80 60 40 20 0 Dissatisfied Dealers opinion Moderately satisfied Total

Series1 Series2 Series3

Inference:-

The majority of the dealers are satisfied with the mode of dispatch by the company

Table-8 Customers Awareness

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Dealers opinion Advertisement Campaign Dealer Others Total

No.Of. Respondents 19 4 27 0 50

Percentage 38 8 54 0 100

Graph : 8

150 100 50 0

No.Of. Responde

Inference:The above table shows that 54% respondents are saying that dealers play majors in customers awareness about the product. And 38% of respondents are stating that advertisement is second highest promotional activity to create awareness in the minds of customer.

Table-9 Sales satisfaction

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Dealers opinion Highly satisfied Moderately satisfied Satisfied Dissatisfied Highly dissatisfied Total

No. of. Respondents 9 11 30 0 0 50

Percentage 8 22 60 0 0 100

Graph : 9

120 100 80 60 40 20 0 Dissatisfied Highly dissatisfied Highly satisfied Dealers opinion Moderately satisfied Satisfied Total

Inference:60% of the dealers are satisfying the sale of HAYWARDS 5000 MINERAL WATERs product following 22% if the dealers moderately satisfied, 18% of the dealers were highly satisfied.

Table-10

Demand estimation on various products

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Dealers opinion Past sales Seasonal Orders Others Total

No. of. Respondents 9 13 28 0 50

Percentage 18 26 56 0 100

Graph : 10

120 100 80 60 40 20 0

No.Of. respondents Percentage

Inference:-

The high percent of dealers are estimating the demand for the product through orders and 26%of are estimating on seasonal base.

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Table-11

Industry to stock point fright expenses percentage

Dealers opinion 2% 3% 4% 5% Total

No. Of. Respondents 30 10 8 2 50

Percentage 60 20 16 4 100

Graph : 11

150

100
50 0 2% 3% 4% 5% total
Inference: -

No.Of. Respon

The dealers are incurs very less fright charges representing 2%, to receive goods from company to your stock point.

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FINDINGS

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FINDINGS

1. Majority of the dealers having 3 to 6 years experience, and less number of dealers having above 6 years experience. 2. Majority of dealers just satisfied about the companys image, remaining are neutral, Highly satisfied. 3. Majority of the customers satisfying about the quality of the product next preference given brand name followed by usages, price. 4. Most of the dealers expresses customers visit to shop by brand name only. And followed dealers influence, by friends, by advertising. 5. The entire dealers were saying they do not face any difficulties to deal with the customers to selling the product. 6. Majority of the dealers saying they do not come across stock out problems. 7. Majority of the dealers satisfying with the supply from the company and very few members satisfied, dissatisfied. 8. All the dealers were saying the entire floor space were providing only for goods storing purpose. 9. Majority of the dealers satisfied with the mode of dispatch by the company. And few members were moderately satisfied, highly satisfied. 10. Majority of the dealers they estimate the demand for various products by the orders and followed by seasonal base and past sales. 11. All the dealers were saying they do not face any difficult in dealing with the company. 12. Majority of the dealers were saying about the fright it incurs 2% to receive goods from company to your stock point.

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SUGGESTIONS

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SUGGESTIONS

1. Provide opportunity for new entrants in the business.

2. To create awareness about the company, using of various ways of promotional activities such as advertisement, to maintain the better relation with dealers. 3. If possible increase the quality of the product and reduce the price. 4. Company and dealers should try to maintain customer good relationship as much as the possible. 5. Try to maintain better supply chain in order to improve the services. Supply the products with in time to the dealers. 6. Try to provide discounts to dealers and credit facilities. 7. Customers, who purchase the huge amount of products, provide free home delivery to customers place.

Questionnaire
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Name of the shop

Date Ph No Signature:

: :

Name of the proprietor: District :

1) How long have you been dealing with HAYWARDS 5000 MINERAL WATER? a)<1year b)below 3 years c) 3 to 6 years d) above 6 years

2) How do you feel the companies image? a) Highly satisfied b) Satisfied c) Neutral d) Dissatisfied e) Others

3) According to you what makes customer more satisfaction in this field? a) Brand name b) Price c) Quality d) Usages e) Others

4) How customers came to your shop? a) By your influence d) By brand name b) By friends c) By advertising e) Others

5) Do you face any difficulty in dealing with the customers? a) Yes b) No

if yes please specify----------

6) Do you face stock out problems for HAYWARDS 5000 MINERAL WATER? a) Frequently b) Rarely c) No

7) Are you satisfied with the supply from the company?

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a) Highly satisfied Highly dissatisfied

b) moderately satisfied

c) Satisfied d) Dissatisfied

e)

8) How much floor space you have provide for ----------? a) Goods storing purpose------b) office purpose------

9) In time delivery is very important for better serving the market. In this connection are you satisfied with the mode o dispatch by the company? a) Highly satisfied Highly dissatisfied b) moderately satisfied c) Satisfied d) Dissatisfied e)

10) According to you most of the customers are aware of HAYWARDS 5000 MINERAL WATERthrough a) Advertisement b) Campaign c) Dealer d) Others

11) Do you satisfy with the sales of HAYWARDS 5000 MINERAL WATER? a) Highly satisfied Highly dissatisfied b) moderately satisfied c) Satisfied d) Dissatisfied e)

12) How do estimate the demand for various products? a) Past sales b) Seasonal c) Orders d) Others

13) Do you face any difficult in dealing with the company? a) Yes b)No

If yes please specify____________________________________

14) What percentage of fright if incurs you to received goods from company to your store point?
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a) 2%

b) 3%

c) 4%

d) 5%

15) Do you feel like to suggest any thing which improves distribution effectiveness? a)yes b)no

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BIBLIOGRAPHY

1. Phillipkotler,2003Marketing Mgmt, T.M.H, New Delhi (9TH EDITION) 2. Schiffman&Kanuk,1997, Consumer behavior, PHI (6TH EDITION) 3. Levin & Kirpatric, Quantitative Techniques For M.B.A, Tata McGraw Hill-1985

Websites: 1. www.marketing.org 2. www.estrategicmarketing.com 3. www.marketingprofs.com 4. www.ultratech.com 5. www.marketingstudies.net

Journals: 1. Economic Times 2. Business Standard

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