A STUDY OF DISTRIBUTION CHANNEL OF BATTERIES FOR EXIDE INDUSTRIES LIMITED

BY

S. CHANDRAN (REG NO: 41502631021)

Of

S.R.M. ENGINEERING COLLEGE S.R.M. INSTITUTE OF MANAGEMENT STUDIES S.R.M. Nagar, Kattankulathur, Kancheepuram Dist., 603203

A PROJECT REPORT Submitted to the FACULTY OF MECHANICAL ENGINEERING

In partial fulfillment of the requirements For the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

MAY 2004

Certified that this project report titled A STUDY OF DISTRIBUTION CHANNEL OF BATTERIES FOR EXIDE INDUSTRIES LIMITED is the bonafide work of Mr. S. CHANDRAN who carried out the research under my supervision. Certified further, that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other candidate.

Guide

HOD

ABSTRACT Distribution Channel can be defined as The marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place and possession gaps that separate goods and services from those who need of want them. A distribution system is a key external resource. Normally it takes years to build, and it is not easily changed. A distribution channel consists of the set of people and firms

involved in the flow of title to a product as it moves from producer to ultimate consumer or business user.

This research title A study of Distribution Channel of Batteries for Exide Industries Limited deals with how the distribution process is going on between the Manufacturer, Distributors and Dealers. parameters like, It also deals with the analysis of various

 Sales Turnover per month Consumers Response on batteries Brand preference Reasons for the brand preference Companies dealt by dealers Buyers preference towards purchase of batteries Attributes preferred by the consumers Credit period from the supplier Type of batteries having more sales Retailer preference of sales promotional activity and Media prefer for the advertisement.

A sample size of 100 was chosen from a total of 400 retailers in Chennai City. Primary data is collected from the dealers or distributors using the Questionnaire. A pilot study was done with a sample size of 10 Questionnaire. The sampling method that is used for the research was Systematic Random Sampling. The Statistics tool, which is used for the research, are Percentage Method, Weighted Average Method and Chi-Square Test. Using this Methodology and Statistical tools the following findings are obtained.

The findings are as follows: Most of the dealers in the survey fall under the turnover of 50,000 1,00,000 with 44%.

 The consumer response for batteries is good for the 23% of the respondents and satisfies for the 77% of the respondents, based on dealers opinion The Customer preference for the Exide Battery is 56% based on dealers opinion. 68% of the dealers are dealing Exide batteries. The reason for recommending Exide is Brand name for 42% of the respondents and Product quality for the 31% of the respondents. Most of the dealers are dealing other company battery because the cost of Exide is very high when comparing to other companies. According to the Retailers opinion Exide has got Rank 1, followed by Amco, Amararaja, Panasonic and Prestolite based on Weighted Average points which is based on some attributes.

ACKNOWLEDGEMENT

I have immense pleasure in thanking Miss. Vanitha , Lecturer, SRM Engineering College for his guidance in carrying out this project. I offer my deep felt gratitude to Mr. R. Venkataramani, Principal, SRM Engineering College for his support in carrying out this project. I offer my deep felt gratitude to Dr. Jayashree Suresh, Dean, SRM Institute of Management Studies, for his valuable guidance and support.

It is with deep sense of gratitude that I express my thanks to Mr. Thyagarajan, HR Manager, Exide Industries, Chennai for his generosity in allowing me to do my project, for his interest and for the encouragement rendered. I would like to thank Mr. Shajan Mathew, Area Manager and Mr. Arnab Das Paul, Assistant Sales Manager, Exide Industries, Chennai for this incisive and objective guidance for entire project. I wish to thank all executives and staff of the company for their support to the project. I wish to thank all the faculty and staff of Department of Management Studies for their support in completion of the Project Work.

S. CHANDRAN

TABLE OF CONTENTS

S.NO

TITLE CHAPTER 1

PAGE NO

1.1 1.2 1.3 1.4 1.4.1 1.4.2 1.4.3

INTRODUCTION INDUSTRY PROFILE COMPANY PROFILE PRODUCT PROFILE TYPE OF EXIDE INDUSTRIAL BATTERIES ADVANTAGES OF DIFFERENT KINDS OF PRODUCT TYPE OF AUTOMOTIVE BATTERIES CHAPTER 2

1 2 3 4 4 4 6

2.1 2.1.1 2.1.2 2.1.3 2.2 2.2.1 2.2.2 2.2.3 2.3 2.3.1 2.3.2 2.3.3 2.3.4 2.3.5 2.3.6 2.3.7

PROJECT PERSPECTIVE CHANNEL OF DISTRIBUTION FUNCTIONS OF DISTRIBUTION CHANNEL FUNCTIONS OF MIDDLE MEN OBJECTIVE OF THE STUDY OBJECTIVE SCOPE OF THE STUDY LIMITATIONS OF THE STUDY METHODOLOGY RESEARCH DESIGN QUESTIONNAIRE DESIGN DATA COLLECTION PROCEDURE PERIOD OF STUDY TECHNIQUES OF ANALYSIS INSTRUMENTS OF DATA COLLECTION SAMPLING PROCEDURE

7 7 8 8 10 10 10 11 12 12 13 14 15 15 18 18

2.3.8 2.3.9 2.4

TOOLS USED PILOT STUDY DATA ANALYSIS AND INTERPRETATION CHAPTER - 3

18 19 20

3.1 3.2 3.3

RESULTS SUGGESTIONS AND RECOMMENDATIONS CONCLUSION APPENDICES REFERENCES

49 52 54 55 57

LIST OF TABLES

S.NO 1 2 3 4 5

TITLE RESPONSE FROM CONSUMERS SALES TURNOVER PER MONTH BRAND PREFERENCE COMPANIES DEALT BY DEALERS BUYERS PREFERENCE TOWARDS PURCHASE OF BATTERIES

PAGE NO 20 22 24 26 28

6 7 8

DURATION OF ORDERING THE PRODUCT ATTRIBUTES PREFERRED BY THE CONSUMERS ON EXIDE CREDIT PERIOD FROM THE MANUFACTURER OR DISTRIBUTOR

30 32 34

9 10

TYPES OF BATTERIES HAVING MORE SALES RETAILER PREFERENCE OF SALES PROMOTIONAL ACTIVITY

36 38

11 12 13

MEDIA PREFER FOR THE ADVERTISEMENT LEVEL OF SATISFACTION OF DELIVERY PROCESS LEVEL OF SATISFACTION OF SALES TURNOVER PER MONTH (CHI SQUARE TABLE)

40 42 44

14

LEVEL OF SATISFACTION OF DELIVERY PROCESS (CHISQUARE TABLE)

46

15 16

RESPONSE FROM CONSUMERS (CHI SQUARE TABLE) RANKING THE BRAND WITH CERTAIN ATTRIBUTES ACCORDING TO DEALERS OPINION (WEIGHTED AVERAGE METHOD)

47 48

LIST OF FIGURES

S.NO 1

TITLE BAR DIAGRAM SHOWING THE RESPONSE FROM CONSUMERS

PAGE NO 21

BAR DIAGRAM SHOWING THE SALES TURNOVER PER MONTH

23

3 4

PIE DIAGRAM SHOWING THE BRAND PREFERENCE BAR DIAGRAM SHOWING THE COMPANIES DEALT BY DEALERS

25 27

BAR DIAGRAM SHOWING THE BUYERS PREFERENCE TOWARDS PURCHASE OF BATTERIES

29

BAR DIAGRAM SHOWING THE DURATION OF ORDERING THE PRODUCT

31

BAR DIAGRAM SHOWING THE ATTRIBUTES PREFERRED BY THE CONSUMERS ON EXIDE

33

BAR DIAGRAM SHOWING THE CREDIT PERIOD FROM THE MANUFACTURER OR DISTRIBUTOR

35

BAR DIAGRAM SHOWING THE TYPES OF BATTERIES HAVING MORE SALES

37

10

BAR DIAGRAM SHOWING THE RETAILER PREFERENCE OF SALES PROMOTIONAL ACTIVITY

39

11

BAR DIAGRAM SHOWING THE MEDIA PREFER FOR THE ADVERTISEMENT

41

12

BAR DIAGRAM SHOWING THE LEVEL OF SATISFACTION OF DELIVERY PROCESS

43

1.1 INTRODUCTION

Battery is the most commonly used item in the field of Automobiles, Industrial Sectors, Power Stations, Railways, Submarines, etc. Battery plays a vital role in

supplying power where electricity could not be used. Industrial batteries are used for UPS, Inverters, systems, power plants, Telecommunications, Motive power drives and different Railways applications. Automotive batteries are used for vehicles for the purpose of Horn, light, listening Music, watching picture, etc. Man could not be depend on electricity in case of moving machines like vehicles, so in that case Battery serves to be good alternative. Battery plays an important role when the electricity fails. Nowadays when

electricity fails, suddenly people are switched over to the Generator to make the power available at any time. When the person is working with the computer the power is essential for the computer continuously, at that time they are using UPS for the regular supply of power to the computer even electricity fails. So like this Industrial battery plays an important role in many ways. Though those batteries are efficiently made, there is no use if those manufactured batteries are not properly distributed through correct channels. So let us study about the Distribution Channel of Batteries in this Research.

1.2 INDUSTRY PROFILE

Todays era where power is the major drive for development, Battery plays a pivotal role towards the development. Industrial Batteries are the backbone of any system that generates power, conditions power or processes power. Industrial batteries are used for UPS, Inverters, systems, power plants, Telecommunications, Motive power drives and different Railways applications. Automotive batteries are used for vehicles for the

purpose of Horn, light, listening Music, watching picture, etc. With the global thrust on Power generations, Infrastructure development and Information technology related developments; Lead acid battery has immense potential for growth. Presently Indian battery industry is worth 2500 crores in Indian Rupees. The Domestic market is growing at the rate of 20% per annum. The Market share of Automotive Battery is 85% and the market share of Industrial Battery is 50%. Further technological development in Lead Acid Battery

technology will cater the need of more efficient and compact battery systems, ultimately satisfied the consumers.

1.3 COMPANY PROFILE Exide Industries Limited was started in the year 1947 by the name Associated Battery Makers (Eastern) Ltd (ABMEL) at Shamnagar, West Bengal. ABMEL become a public limited company in the year 1960. After that the second factory setup in Chinchwad, pune. ABMEL was renamed as Chloride India Ltd in the year 1972. In 1976 R&D centre was established at Kolkata. In 1981 third factory was setup at Haldia, West Bengal. After that Chloride India Ltd was again renamed as Chloride Industries Ltd. In 1995 Chloride Industries was renamed as Exide Industries Limited. In 1997 fourth was setup at Hosur and Tamilnadu. For over 74 years, Exide Industries Ltd has pioneered battery technology in India. Formerly known as Chloride Industries Limited, the company was a part of the chloride Group PLC UK. The leader in the packaged power technology. Exide is today Indias largest storage battery company with global affiliations and internationally reputed brands having nine factories strategically located all over India. VISION: To win our customer, stakeholders and employees by transferring Quality into a performance oriented business, which will secure market Leadership and profitable growth through effective fulfillment of customer Needs.

1.4 PRODUCT PROFILE

1.4.1 TYPES OF EXIDE INDUSTRIAL BATTERIES: EXIDE PLANTE EXIDE TUBULAR EXIDE VRLA EXIDE POWERSAFE EXIDE EL TUBULAR EXIDE LITE EXIDE INVAKING 1500 EXIDE HSP CLASSIC

1.4.2 ADVANTAGES OF DIFFERENT KINDS OF PRODUCT: The TUBULAR Battery has a very robust construction and can

provide 1200 to 1500 cycles of charge and discharge before its capacity Degrades to 80% of its rated capacity and is fit for replacement. The TUBULAR Battery provides a life of around 10 to 12 in Power

Stations if maintained properly. In VRLA Battery there is no topping up with water required during

lifetime. In VRLA Battery there is no acid fume while charging the battery.

The VRLA Batteries are stackable and hence smaller floor area and

smaller floor area and smaller battery room. The VRLA Batteries has very good high discharge performance and

hence smaller capacity VRLA Battery can do the same job as a larger capacity tubular battery. The PLANTE Batteries require water topping up only once in three

Years if the battery room is not too hot. Even in higher ambience, once in two years topping up is quite adequate. The PLANTE cells do not lose any capacity till the end of their life.

Hence, unlike TUBULAR and VRLA Battery, 20% margin need not be added to the required PLANTE Battery capacity. This further reduces the cost differential between PLANTE and other batteries. The EXIDE INVAKING 1500 has extra heavy duty plates as per

exclusive EXIDE design ensuring durability, resistance to corrosion and inbuilt margins for high ambient temperature and vibrations. In EXIDE POWERSAFE Battery, no topping up is required and it is

maintenance free. In EXIDE POWERSAFE battery it enhanced performance that is it is

Computer aided grid design for high power density, excellent deep discharge recovery, and better thermal management in the module and it is resistance to thermal runaway.

1.4.3 TYPES OF AUTOMOTIVE BATTERIES:

EXIDE ATB EXIDE MAX EXIDE FREEDOM DAGENITE INDEX LUCAS DYNEX CONREX STANDARD FURUKAWA (SF) SONIC

These are the different types of EXIDE Automotive batteries.

2.1 PROJECT PERSPECTIVES

2.1.1 Channel of Distribution: A Distribution Channel consists of the set of people and firms involved in the flow of title to a product as it moves from producer to ultimate consumer or business user. A Marketing Channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption. A Channel of distribution always includes both the producer and the final customer for the product in its present form as well as any middlemen such as retailers and wholesalers. Definition: Distribution Channel can be defined as the marketing channel performs the work of moving goods from producers to consumers. It overcomes the time, place and

possession gaps that separate goods and services from those who need or want them. A distribution system is a key external resource. Normally it takes years to build, and it is not easily changed. It ranks in importance with key internal resources such as

manufacturing, research, engineering and field sales personnel and facilities.

2.1.2 Functions of Distribution Channel:

1. Distribution Channel gather information about potential and current Customers, competitors and other actors and forces in the marketing environment. 2. They develop and disseminate persuasive communications to Stimulate purchasing. 3. They reach agreement on price and other terms so that transfer of Ownership or possession can be affected. 4. They acquire the funds to finance inventories at different levels in the Marketing channel. 5. They provide for the successive storage and movement of physical Products.

2.1.3 Functions of Middle men (Wholesalers and Retailers): 1. Many producers do not have the resources to engage themselves in direct marketing. 2. Distributors and Dealers reduce transactions to our optimum number. 3. Distributors and Dealers are capable of eliminating discrepancies in Quantity that is distributed. This is done by breaking the bulk that is dividing a huge lot into small fractions. 4. The producer can concentrate on the production function leaving the marketing problem to middlemen who specialize in the line.

5. Selling intermediaries is to assemble the goods from many producers in such a manner that a customer could effect purchase with ease. 6. Middlemen collect huge orders and purchase products in bulk from the producers. This enables a manufacturer to undertake large-scale production. 7. The main function of middlemen is to provide the connection link Between the producers and their respective markets.

2.2 OBJECTIVE AND SCOPE OF THE STUDY

2.2.1 OBJECTIVE: v To understand the effectiveness of the present distribution. v To find out the market share of the Exide batteries using the sales made by the various dealers. v To find out the Level of satisfaction of Distribution process of Exide. v To find out the satisfied level of the customers through the preference of the dealers. v To find out reasons behind dealers willingness to deal with different kinds of Batteries based on some attributes. v To take opinions and suggestions of dealers towards the batteries. v To provide suggestions to company regarding channel effectiveness and expectations of dealers for the Exide batteries to improve.

2.2.2 Scope of the Study: The study on distribution system helps in finding at number of marketing intermediates for taking the products to the user. The study also helps to improve the effectiveness of present network system. The study also helps to improve the sales of the Exide by supplying the Exide batteries to the competitors dealer also. So that Exide Industries Limited can its position in the market. 2.2.3 Limitations of the Study:

v Findings of the study are based on the assumption for some attributes since the respondents have not divulged correct information. v Personal bias is the other limitations of this study. v Market share was found through the average sales per month was disclosed approximately by the dealers. (Since its not consistent for every month).

2.3 METHODOLOGY

The Study was conclusive and empirical in nature.

The data was collected

basically by the Primary and Secondary data. The Primary data was collected by Survey that is conducted by the use of Questionnaire. Secondary data was collected by the Secondary Sources like the Company records, magazine and Newspapers.

2.3.1 Research Design Marketing research design specifies the procedure for concluding and controlling the research project. The choice of particular research design follows for the problem. The following are the main elements of research design.

1. Types of Data Type of the data is exploratory which gives major emphasis is on the discovery of ideas. From this we can find out the factors of attributed used in a purchase decision the way consumer influenced by communication and also establishes priorities for future research. 2. Source of Data The primary data for the research design has been collected by meeting the potential customers in the various retail outlets in various parts of the Chennai city. 3. Form of Data Questionnaire, which has qualitative and quantitative data, has been used as a tool to collect primary data. 4. Nature of Data Selection The research study was conducted randomly at different areas of Chennai in a stipulated period of three months.

2.3.2 Questionnaire Design A Questionnaire was developed to analysis the distribution network of Exide Industries Limited. The questionnaire was constructed based on an in-depth interview with the different battery dealers. The questionnaire made after gaining enough exposure on the company, product and market, which was made possible after discussion with knowledgeable persons of the company. The questions are structured and direct so as to make the respondent understand it easily.

All together about 25 questions were framed which took about 5 to 7 minutes to answer. A model of this questionnaire is enclosed in the annexure. The questionnaire elicited the following informations.

v Customer preference based on dealers opinion v Customer Response for various batteries v Customers opinion about price v Attributes towards customer preference v Type of Batteries having more sales v Reason for the preference of batteries by the customer opinion through dealers v Order quantity per time by the dealer (month wise) v Sales of various type of batteries by the dealers v Sales turnover per month by the dealers

v Dealers opinion about Exide v Retailer reference of Sales promotional activity v Media prefer for the advertisement v Level of satisfaction of delivery process

2.3.3 Data Collection Procedure The modified questionnaire was used it collecting the primary data from the dealers. The dealers were asked each question and the information is noted by the researcher in the answer sheets.

Initially before asking the questionnaires good co-operations were obtained from the dealers while asking the questions to collect the data. The questions were asked in a structured order. Any doubts that the dealer had were clarified so as to collect the right answer from the dealers.

2.3.4 Period of Study The fieldwork was carried out from January 2004 to March 2004; the secondary data was taken through the company records, newspapers, and business magazines. Secondary data consists of information that already exists, which was also taken for this study purpose.

2.3.5 Techniques of Analysis A data collected from the respondents were analyzed using various statistical techniques. 1. Percentage Method 2. Chi-Square Test 3. Weighted Average Method

Chi-Square Test

Chi-Square test describes the magnitude of discrepancy between expected and observed frequencies. It is a non-parametric test. The test is used for nominal data that are independent. Chi-square test is also called test of independence because the null hypothesis in this test is not based on a probability model but on the rules of probability of independent events. Chi-square Statistic is calculated using the formula, X2 = E(o-e)2 /e Where o is the observed frequency, e is the expected frequency and e = (Row total for the row of that cell) X (column total for the column of that cell) / (Grand total). While comparing the calculated value of X2 with the table value we have to determine the degree of freedom. Degree of freedom means the number of class to which the value can be assigned arbitrarily or will without violating the restrictions or limitations placed.

Tabulated value should be selected at certain specific level of significance. This studies mostly 0.05 level of significance. If this calculated value is greater than tabulated value null hypothesis (Ho) is rejected, thus with X2 test it can be analysis that whether there is a real or significant difference exists among the group of data.

Weighted Average Method: Weighted Average Method is used in this Research Study to ranking the different brands according to certain attributes like Brand name, product quality, price and Service. The formula, which is used for the Weighted Average Method, is,

X = ( Wi.Xi) / Wi Wi is the Weighted Average for each brand Wi is the weightage given to ith brand W1 for rank I =4 W2for rank II =3 W3 for rank III=2 W4 for rank IV=1 2.3.6 Instruments of Data Collections Schedule of interviews, Simple statistical tools suc h as Percentage Method, Weighted Average Method and Chi-square test are used to make the analysis and interpretation of the data collected.

2.3.7 Sampling Procedure Survey was made with random sampling. From that 100 sample was taken by the probability method. 2.3.8 Tools Used A questionnaire was developed to analysis the effective distribution network of Exide Batteries. The questionnaire was constructed based on an in-depth interview with Battery dealers. The questionnaire made after gaining enough exposure on the company, product and market, which was made possible after discussion with knowledgeable persons of the company. The questions or structured and direct so as to make the respondent understand it easily. Rating scale was adapted to measuring the respondents. All together about the question were formed which took about 5 to 7 minutes to answers. A model

questionnaire is enclosed in the Annexure the questionnaire elicited the following information. v Customer preference based on dealers opinion v Customer Response for various batteries v Customers opinion about price v Attributes towards customer preference v Type of Batteries having more sales v Reason for the preference of batteries by the customer opinion through dealers v Order quantity per time by the dealer (month wise) v Sales of various type of batteries by the dealers

v Sales turnover per month by the dealers v Dealers opinion about Exide v Retailer reference of Sales promotional activity v Media prefer for the advertisement v Level of satisfaction of delivery process

2.3.9 Pilot Study A Pilot study was conducted to find out the feasibility of the questionnaire. The sample of 10 dealers from Chennai city was randomly selected and administered the questionnaire. Any modification that the researcher felt essential was carried out so as to make questionnaire easily understandable.

2.4 DATA ANALYSIS AND INTERPRETATION TABLE 2.4.1 RESPONSE FROM CONSUMERS

CUSTOMERS RESPONSE GOOD POOR TOTAL

NO. OF RESPONDENTS 54 46 100

PERCENTAGE(%) 54 46 100.00

Table 1 shows the customer response level for Batteries based on sellers opinion. 54 Respondents opinion is satisfied and 46 respondents is not satisfied. The company has to utilize this attitude to achieve the companys goal.

FIGURE 2.4.1 BAR DIAGRAM SHOWING RESPONSE FROM CONSUMERS

RESPONSE FROM CONSUMERS

56 54 PERCENTAGE 52 50 48 46 44 42 1 LEVEL OF SATISFACTION 2

1 - Good 2 - Poor

TABLE 2.4.2 SALES TURNOVER PER MONTH

PERCENTAGE TURNOVER PER MONTH NO. OF RESPONDENTS (%) BELOW 50,000 50,000 1,00,000 1,00,000 5,00,000 ABOVE 5,00,000 TOTAL 12 44 39 5 100 12 44 39 5 100.00

Table 2 shows the distributors, dealers turnover per month, 12% of the Respondents turnover per month is below 50,000, 44% of the respondents turnover per month is 50,000 1,00,000. 39% of the Respondents turnover per month is 1,00,000 5,00,000 and 5% of the Respondents turnover per month is above 5,00,000. From this finding the company can decide the credit limit, discount rate and fixing the schemes.

FIGURE 2.4.2 BAR DIAGRAM SHOWING SALES TURNOVER PER MONTH

SALES TURNOVER PER MONTH

50 45 40 35 30 25 20 15 10 5 0 1 2 RUPEES 3 4

PERCENTAGE

1. BELOW 50,000 2. 50,000 1,00,000 3. 1,00,000 5,00,000 4. ABOVE 5,00,000

TABLE 2.4.3 BRAND PREFERENCE

PERCENTAGE(% BRAND NAME NO. OF RESPONDENTS ) EXIDE AMARARAJA AMCO OTHERS DEPENDS UPON THE 10 VEHICLE TOTAL 100 100.00 10 56 17 10 7 56 17 10 7

Table 3 shows the Brand prefer by customer based on sellers experience. The Exide battery was preferred by 56% of the customer. To make the remaining 46% of the customer to purchase Exide, the company need to reduce the cost and they need to give discounts.

FIGURE 2.4.3 PIE DIAGRAM SHOWING BRAND PREFERENCE

BRAND PREFERENCE

10% 17%

7%

10%

56%

EXIDE 56% AMARARAJA 17% AMCO 10% OTHERS 7% DEPENDS UPON THE VEHICLE - 10%

TABLE 2.4.4 COMPANIES DEALT BY DEALERS

COMPANY NAME EXIDE AMARARAJA AMCO OTHERS

NO. OF RESPONDENTS 68 34 22 15

PERCENTAGE(%) 68 34 22 15

Table 4 shows the companies dealt by dealers, 68% of the dealers are dealing Exide. To make the remaining dealers are to sell Exide, the company need to give more margin for the dealers and to give more credit period for the dealers.

FIGURE 2.4.4 BAR DIAGRAM SHOWING COMPANIES DEALT BY DEALERS

COMPANIES DEALT BY DEALERS

80 70 PERCENTAGE 60 50 40 30 20 10 0 1 2 3 4 COMPANY NAME

1. EXIDE 2. AMARARAJA 3. AMCO 4. OTHERS

TABLE 2.4.5 BUYERS PREFERENCE TOWARDS PURCHASE OF BATTERIES

BUYERS PREFERENCE

NO. OF RESPONDENTS

PERCENTAGE(% )

MANUFACTURER DISTRIBUTOR TOTAL

57 43 100

57 43 100.00

Table 5 shows the Buyers preference towards purchase of Batteries, 57% of the dealers are purchase the product from the manufacturer and remaining 43% of the dealers are purchase the product from the distributor.

FIGURE 2.4.5 BAR DIAGRAM SHOWING BUYERS PREFERENCE TOWARDS PURCHASE OF BATTERIES

BUYER'S PREFERENCE TOWARDS PURCHASE OF BATTERIES

60 PERCENTAGE 50 40 30 20 10 0 1 PREFERENCE 2

1. MANUFACTURER 2. DISTRIBUTOR

TABLE 2.4.6 DURATION OF ORDERING THE PRODUCT

DURATION MONTHLY WEEKLY DEMANDWISE TOTAL

NO. OF RESPONDENTS 17 10 73 100

PERCENTAGE(%) 17 10 73 100.00

Table 6 shows the duration of ordering the product by the dealers and distributors. 17% of the Respondents are ordering the product monthly, 10% of the respondents are ordering the product weekly and remaining 73% of the respondents are ordering the product according to the demand. To make the dealer for stock the product the company needs to give more credit period for the dealers as well as for the distributors.

FIGURE 2.4.6 BAR DIAGRAM SHOWING DURATION OF ORDERING THE PRODUCT

DURATION OF ORDERING THE PRODUCT

80 70 PERCENTAGE 60 50 40 30 20 10 0 1 2 DURATION 3

1. MONTHLY 2. WEEKLY 3. DEMANDWISE

TABLE 2.4.7 ATTRIBUTES PREFERRED BY THE CONSUMERS ON EXIDE (Based on dealers opinion)

ATTRIBUTES

NO. OF RESPONDENTS

PERCENTAGE(% )

BRAND NAME PRODUCT QUALITY PRICE MAINTENANCE TOTAL

42 31 20 7 100

42 31 20 7 100.00

Table 7 shows the attributes preferred by the consumers on Exide based on dealers opinion. 42% of the respondents prefer Brand name, 31% of the respondents prefer Quality is needed. 20% of the respondents prefer the product according to the cost of the product, so the company needs to reduce the cost as much as possible and give more discount for the customers.

FIGURE 2.4.7 BAR DIAGRAM SHOWING ATTRIBUTES PREFER BY THE CONSUMERS ON EXIDE

ATTRIBUTES PREFER BY THE CONSUMERS ON EXIDE

45 40 35 30 25 20 15 10 5 0 1 2 ATTRIBUTES 3 4

PERCENTAGE

1. BRAND NAME 2. PRODUCT QUALITY 3. PRICE 4. MAINTENANCE

TABLE 2.4.8 CREDIT PERIOD FROM THE MANUFACTURER OR DISTRIBUTOR

DURATION

NO. OF RESPONDENTS

PERCENTAGE(% )

< ONE MONTH > ONE MONTH CASH ON DELIVERY TOTAL

34 40 26 100

34 40 26 100.00

Table 8 shows the credit period given by the manufacturer or distributor to the dealer. 34% of the respondents are getting less than one-month credit period from the manufacturer or distributor. 40% of the respondents are getting more than one month credit period from the manufacturer or dealer and remaining 26% of the respondents are purchase the product by ready cash.

FIGURE 2.4.8 BAR DIAGRAM SHOWING CREDIT PERIOD FROM THE MANUFACTURER OR DISTRIBUTOR

CREDIT PERIOD FROM THE MANUFACTURER OR DISTRIBUTOR

45 40 35 30 25 20 15 10 5 0 1 2 DURATION 3

PERCENTAGE

1. LESS THAN ONE MONTH 2. GREATER THAN ONE MONTH 3. CASH ON DELIVERY

TABLE 2.4.9 TYPE OF BATTERIES HAVING MORE SALES

BATTERY TYPE AUTOMOTIVE INDUSTRIAL SUBMARINE TOTAL

NO. OF RESPONDENTS 90 10 0 100

PERCENTAGE(%) 90 10 0 100.00

Table 9 shows type of batteries having more sales. 90% of the respondents are dealing automotive batteries and remaining 10% of the respondents are dealing industrial batteries. To improve the sales of industrial batteries the company needs to give more credit period for the industrial batteries and make the dealers to stock the product.

FIGURE 2.4.9 BAR DIAGRAM SHOWING TYPE OF BATTERIES HAVING MORE SALES

TYPE OF BATTERIES HAVING MORE SALES

100 90 80 PERCENTAGE 70 60 50 40 30 20 10 0 1 2 TYPE OF BATTERY 3

1. AUTOMOTIVE 2. INDUSTRIAL 3. SUBMARINE

TABLE 2.4.10 RETAILER PREFERENCE OF SALES PROMOTIONAL ACTIVITY

SALES PROMOTIONAL NO. OF RESPONDENTS ACTIVITY DISCOUNT COUPON ADVERTISEMENT GIFTS TOTAL 53 12 22 13 100 53 12 22 13 100.00 PERCENTAGE (%)

Table 10 shows the retailer preference of sales promotional activity. 53% of the respondents choose the discount as a sales promotional activity, 12% of the respondents are responding coupon and 22% of the respondents are responding Advertisement and 13% for gifts as a sales promotional activity to improve the sales of the product.

FIGURE 2.4.10 BAR DIAGRAM SHOWING RETAILER PREFERENCE OF SALES PROMOTIONAL ACTIVITY

RETAILER PREFERENCE OF SALES PROMOTIONAL ACTIVITY

60 PERCENTAGE 50 40 30 20 10 0 1 2 3 4 SALES PROMOTIONAL ACTIVITY

1. DISOUNT 2. COUPON 3. ADVERTISEMENT 4. GIFTS

TABLE 2.4.11 MEDIA PREFER FOR THE ADVERTISEMENT

MEDIA TELEVISION NEWSPAPER MAGAZINE RADIO POSTER TOTAL

NO. OF RESPONDENTS 45 28 10 5 12 100

PERCENTAGE(%) 45 28 10 5 12 100.00

Table 11 shows the Media prefer for the advertisement by the dealers and distributors. 45% of the respondents prefer to advertise in Television and 28% of the respondents prefer to make advertisement in Newspaper.

FIGURE 2.4.11 BAR DIAGRAM SHOWING MEDIA PREFER FOR THE ADVERTISEMENT

MEDIA PREFER FOR THE ADVERTISEMENT

50 45 40 35 30 25 20 15 10 5 0 1 2 3 MEDIA 4 5

PERCENTAGE

1. TELEVISION 2. NEWSPAPER 3. MAGAZINE 4. RADIO 5. POSTER

TABLE 2.4.12 LEVEL OF SATISFACTION OF DELIVERY PROCESS

LEVEL OF SATISFACTION

NO. OF RESPONDENTS

PERCENTAGE(% )

SATISFIED NOT SATISFIED TOTAL

58 42 100

58 42 100.00

Table 12 shows the level of satisfaction of the delivery process. 58% of the respondents are satisfied with the delivery process. 42% of the respondents are not satisfied with the delivery process, so the company needs to make the delivery as much as quick.

FIGURE 2.4.12 BAR DIAGRAM SHOWING LEVEL OF SATISFACTION OF DELIVERY PROCESS

LEVEL OF SATISFACTION OF DELIVERY PROCESS

70 PERCENTAGE 60 50 40 30 20 10 0 1 SATISFACTION LEVEL 2

1. SATISFIED 2. NOT SATISFIED

CHI SQUARE TEST TABLE 2.4.13 LEVEL OF SATISFACTION OF SALES TURNOVER PER MONTH (SALES TURNOVER PER MONTH) LEVEL OF <50,000 SATISFACTION SATISFIED NOT SATISFIED TOTAL 8 4 12 1,00,000 30 14 44 15 24 39 4 1 5 50,000 1 5 LAKHS >5 LAKHS L 57 43 100 TOTA

Ho = Retailers are Not Satisfied with the Sales Turnover H i = Retailers are Satisfied with the Sales Turnover O 8 4 30 14 15 24 4 1 E 6.84 5.16 25 18.92 22.23 16.77 2.85 2.15 O-E 1.16 -1.16 5 -4.92 -7.23 7.23 1.15 -1.15 (O-E)2 1.35 1.35 25 24.21 52.27 52.27 1.32 1.32 X2 = 9.28 (O-E)2 /E 0.20 0.26 1 1.28 2.35 3.12 0.46 0.61

Degree of Freedom = (c-1)(r-1) = (4-1)(2-1) = 3 N = 100 Tabulated Value at 0.05 level = 7.81 Calculated Value is Greater than Tabulated Value (9.28>7.81) So the null hypothesis (Ho) is Rejected, alternate hypothesis (Hi) is Accepted. Hence the Retailers are satisfied with the sales turnover per month.

CHISQUARE TEST TABLE 2.4.14 LEVEL OF SATISFACTION OF DELIVERY PROCESS

LEVEL OF SATISFACTION SATISFIED NOT SATISFIED

NO. OF RESPONDENTS

58 42

Ho: Respondents are satisfied with the Delivery process. Hi: Respondents are not satisfied with the Delivery process.

X 58 42

( X X) 8 -8 TOTAL

( X X)2 64 64 128

( X X)2 /N = 128/100 = 1.28 Degrees of Freedom = n 1 = 2 1 = 1

Calculated value = 1.28 Tabulated value = 3.84

Since calculated value is less than the tabulated value, so Ho is accepted. So the respondents are satisfied with the Delivery Process of Exide.

CHISQUARE TEST TABLE 2.4.15 RESPONSE FROM CONSUMERS

RESPONSE FROM CONSUMERS GOOD POOR

NO. OF RESPONDENTS 56 44

Ho: Response from consumers are satisfied by the Dealer. Hi: Response from consumers are not satisfied by the Dealer.

X 56 44

( X X) 6 -6 TOTAL

( X X)2 36 36 72

( X X)2 /N = 72/100 = 0.72 Degrees of Freedom = n 1 = 2 1 = 1

Calculated value = 0.72 Tabulated value = 3.84

Since calculated value is less than the tabulated value, so Ho is accepted. So the Dealers satisfy the responses from consumers.

WEIGHTED AVERAGE METHOD

2.4.16 RANKING THE BRAND WITH CERTAIN ATTRIBUTES ACCORDING TO DEALERS OPINION

WEIGHTE BRAND COMPANY NAME QUALITY PRODUCT PRICE E AVERAGE EXIDE AMARARAJA AMCO PRESTOLITE PANASONIC 42 17 21 11 15 31 26 24 14 16 7 44 45 45 40 20 13 10 30 29 29.5 24.7 25.4 20.6 21.7 1 3 2 5 4 SERVIC D RANK

From the table it is clear that Exide has scored highest weighted average points. So it Rank Number one followed by Amco, Amararaja, Panasonic and Prestolite.

3.1 RESULTS

On analysis of the primary data the following points were identified. The survey sample size is 100.

1) Most of the dealers in the survey fall under the turnover of 50,000 1,00,000 (44%).

2) The customer response for Batteries is good for 56% and 44% are poor based on dealers opinion.

3) 57% of dealer purchase the product from the manufacturer and remaining 43% of dealer purchase the product from the distributors.

4) 68% of the dealers are dealing Exide Batteries.

5) Customer preference for Exide Battery is 56% based on dealers experience.

6) The reason for recommending Exide is because of Good Brand name with 42% respondents.

7) 31% of the respondents prefer Exide based on the Product Quality.

8) Only 7% of the respondents are satisfied with the price of Exide.

9) 20% of the dealers are satisfied with the Service provided by Exide.

10) Most of the dealers are dealing other brands because; the cost of Exide is very high when compared to other brands.

11) According to the weighted average points, Exide is in the first place followed by Amco, Amararaja, Panasonic and Prestolite based on certain attributes like brand name, product quality, price and credit facilities.

12) 17% of the dealers are ordering the product monthly and 10% of the dealers are ordering the product weekly.

13) 73% of the dealers are ordering the product according to the demand.

14) Apart from Exide, 32% of the dealers are dealing other Company batteries like Amararaja, Amco, Prestolite and Panasonic.

15) 34% of the respondents are getting less than one-month credit period from the supplier and 40% of the respondents are getting more than one-month credit period from the supplier.

16) 26% of the respondents are receiving cash discount from the supplier while they purchase the product with cash on delivery (COD).

17) The sales percentage of Automotive battery is 90% and the Industrial battery is 10%.

18) For the requirement of sales promotional activity 53% of the respondents are responding for Discounts followed by Advertisement 22%, Gifts 13% and for Coupons 12%.

19) Advertising media preferred by the dealers to attract more customer is Television with 45%, Newspaper with 28% followed by Poster 12%, Magazine 10% and 5% of the respondents prefer to advertise in Radio.

20) 58% of the respondents are satisfied with the suppliers delivery period and 42% of the respondents are not satisfied with the delivery period.

3.2 SUGGESTIONS AND RECOMMENDATIONS

The company has to take necessary steps to regulate the Channels of distribution. The steps are as follows.

1. If the credit period is extended to two months, the dealers can stock out products than the other brands since most of the dealers are ordering the product according to the demand.

2. The company has to take necessary steps to reduce the cost of the product.

3. The company need to take necessary steps by giving 2 months credit period and by giving 6% discount for the dealers who are dealing other brands rather than Exide.

4. The company has to take necessary steps to motivate small dealers also, through promotional activities and introduce new schemes.

5. Company representatives have to contact the distributors and dealers atleast twice a month.

6. The percentage of the commission has to increased to motivate the dealer around 2% to 5%.

7. As the brand image is one of the creative features to influence the customers while they are purchasing the battery, it can be done by effective advertisements through the Television media more than print media.

8. The company need to take necessary steps for quick delivery to avoid stock shortage. They need to deliver the product as quick as possible, since most of the dealers are ordering the product according to the demand wise.

9. The company still needs to take steps for the after sales service and the service need to be quick as much as possible.

The company need to take necessary steps by giving more discount and credit period to sell Exide. If this is made then definitely, the market share of Exide is still improved.

3.3 CONCLUSION

An analytical study on distribution channel in Exide industries Limited has helped in arriving at valuable conclusion through the analysis of primary data collected. The study revealed that the company can improve the effectiveness of present network system by motivate and encourage the dealers in terms of quick delivery in all areas, percentage of commission, good advertisement support, quick after sales service and try to reduce the cost of the product. With this strategy when they go for marketing plans, this Exide Battery can still hold the position of leader in the market.

APPENDICES QUESTIONAIRE Name of the Retailer: Address

1. What are the Companies you are dealing? Exide Amco Amararaja Panasonic All

Prestolite

2. How is the response from Consumers fro the Batteries? Good Poor 3. What is the Consumers opinion about price? Low Moderate High 4. Which Brand do Customer Prefer more? Exide Amararaja Amco Panasonic Others Depends upon the vehicle

Prestolite

5. What are the attributes, which Customer prefer (based on your experience)? Brand name Product Quality Price Maintenance 6. If a Customer does not mention any brand, which brand do you suggest normally? Exide Amco Amararaja Panasonic Prestolite others Depends upon the customer vehicle 7. What it is the reason for the preference? Brand Name Quality Price Margin Service

Maintenance

8. How do the Manufacturer help in selling the product? Sending sales representative Giving Training 9. Where do you buy the Batteries? Manufacturer Distributor 10. How the Manufacturer/Distributor gets the order from you? Sales Representative Phone 11.What is the Duration of Ordering the Product? Monthly Weekly Demandwise

12.What is the Credit Period given by the Manufacturer/Distributor? < one-month > one-month Cash on Delivery 13.Are you Satisfied with the Manufacturer during Delivery Process? Satisfy Not Satisfy 14.Which type of battery which you normally Sell? Automotive Industrial 15.Rank the brands according to Brand Name, Product Quality, Price and Service?

BRAND PRODUCT PRIC COMPANY NAME EXIDE AMARARAJA AMCO PRESTOLITE PANASONIC QUALITY E

SERVIC E

16.Which Sales Promotional Activity do you suggest? Discount Coupon Advertisement Gifts 17.Which Media do you Prefer for the Advertisement? Television Newspaper Magazine Radio Poster 18.What is the Turnover Per month? < 50,000 50,000 1,00,000 > 5 lakhs

1 5 lakhs

19. Are you Satisfied with the Turnover? Satisfy Not Satisfy 20. Give me you Suggestions and Recommendations to Exide Industries Ltd?

THANK YOU

REFERENCES

Marketing Management

Philip kotler

Statistical Methods

S P Gupta

Research Methodology

Uma sekaran

Research Methodology

C R Kothari