CHAPTER I

INTRODUCTION
1.1 Background of the Study A sale is an act of transferring goods from the owner to the buyer on the cost of money or goods. With the development of human civilization act of selling is being practiced. Before it was limited with exchanging goods with goods, but after the introduction of money it has get a new dimension. Therefore, selling means to buy the goods giving money by the buyer to the seller. In other words, sale refers to the transfer of ownership from sellers to the buyers. As we now this is the age of business so in business the primary tas is to con view the customer and sale the product. !or ma ing the selling process effective various concept were developed to tac le with customer"s behavior. At the era of #$%&s it was believed that customers will favor those products that are widely available and are of low price. After that it was believed that consumer"s respond to good 'uality products that are reasonably pried. At #$$&s, it was believed that consumer will buy those products when they are persuaded to buy at the modern era( it is believed that selling only the product is not the ey tas , satisfaction of consumers is the main focus. )ale analysis is the analysis of the total sales from different view. It is the analysis of regional sales, compositional analysis of sales and profit related sales. *ence, we can say that sale is a process of transferring goods or owner ships from sellers to the buyers and vise+ versa. )elling is one side of e'uation of exchange. )ales are eyesight of business for each company. )o sales consists the ma,or ob,ective in the form of profit. Therefore, every company should eep in mind that the sales play an important role to increase the profit of organization for the powerful grip in the mar et, the organization should accept the appropriate selling method and this is done only after its analysis of sales trend. -veryone is affected with sales activities directly or indirectly because we all are the customers and in some extent we are producer also. )o everyone should be sensitive about sales and its relative factors. )ales analysis is based on the analysis of actual sales results. )ales in one concept is a factor that affects the whole business or the trading system of the firm in the since that the origination of the trading business depends directly in the sales feasibility. )elling is one of the most important business activities. A company can not earn money unless people buy its products. An effective sales force benefits other people in the company. The more the company sells, the more it needs to produce. )elling is ,ust one part of a process called mar eting, which includes mar et research,

product development, pricing, adverting and other activities. Advertising and selling are similar because both operations are aimed at trying to persuade people to buy products. .y report considers /)ales analysis of )hrestha Traders/ which ma es an attempt to analyze the sales. It also analyzes all the aspects of sales with profit and other areas too. 1. !"terature Re#"e$ While writing this report I have concerned different boo s written by different authors for the guideline where they define 0)ales Analysis1 depending upon their own views and ideas. 2ue to these views and ideas, those definitions of 0)ales Analysis1 were also differ from one another. Thus, definitions of 0)ales Analysis1 defined by different authors are given below3+ According to 2r. 4.2. 4oirala 56&7% B)8, 0)ales Analysis1 as 0)ales analysis refers to activities of non+recurrent nature that are used to reinforce personal selling and advertising for stimulating consumers purchasing and dealer effectiveness According to 9.:. )anta i 56&&#8, 0Any activities other than personal selling, advertising and publicity can be called as sales analysis1. According to ;hilip 4otler, 0)ales Analysis consists of a diverse collection of incentive tools, mostly short term designed to stimulate 'uic er or greater purchase of particular products or services by consumers or the trade1. )elling is one of the most important business activities. A company can not earn money unless people buy its products. An effective sales force benefits other people in the company. The more the company sells, the more it needs to produce. )elling is ,ust one part of a process called mar eting, which includes mar et research, product development, pricing, adverting and other activities. Advertising and selling are similar because both operations are aimed at trying to persuade people to buy products. 1.% State&ent of the Pro'(e&) :eed and ob,ectives are derived to solve the problem. A sale is an act of transferring goods from the owner to the buyer on the cost of money or goods., which is the main threat to operate it. )o to save the existence of company in competitive mar et the company must produce and sales at the Analysis. The researchers researched about the )ales Analysis to find the solution of such problems, which are presented as 'uestion towards the company are as follow3 *ow analyze the sales trend of different fiscal years< *ow analysis the composition of sales of )hrestha Trad#ers, Butwal< *ow analyze the profit of different fiscal years< 6

 *ow analyze the regional sales and total sales of )hrestha Traders, Butwal< *ow evaluate the relationship between sale and profit of )hrestha Traders, Butwal< 1.* S"gn"f"cance of the Study This field wor report is about sales analysis of )hrestha Traders. )ale is an act of transferring ownership from seller to the buyers or transferring goods from owner to the buyer on the cost of money or goods. I have tried to find out the sales analysis and profit. )ales and profit are inter related which means when sales increases, profit also increases automatically. )ales and profit are direct proportion. !or sales it means from where goods are imported and where goods are sold. *ow much a sale is done in limited years as well as how much profit is earned by )hrestha Traders. 1.+ O',ect"#e) of the Study The specific ob,ectives of the study are as follows3 #8 To analyze the sales of different fiscal years. 68 To analysis the composition of sales =8 To analyze the profit of different fiscal years. >8 To analyze the regional sales and total sales 78 To study the relationship between sale sand profit. 1.- .ethodo(ogy of the Study #.?.# .ethod of data collection In order to collect data to study on sales analysis of )hrestha Traders various methods can be used. )uch as3 I8 ;rimary data3 The data which are collected for the first time is called primary data. It contains i8 2irect interview3 )taffs of )hrestha Traders were interview directly and related data are collected about the report. II8 )econdary data3 The data which is not originally collected but rather obtained from other resources is called secondary data.

#.?.6 Tools are used for presentation and analysis a. Table b. Bar diagrams c. ;ie charts !or analyzing the result of the report mathematical analysis has been done by using correlation coefficient. 1./ !"&"tat"on) of the Study0 )ome limitations of the study are3 #8 The study is based on 7 years 68 The study is mostly bases on secondary data =8 @nly bar diagram and charts are used in the study.

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CHAPTER II

DATA PRESENTATION AND ANA!1SIS

Data Pre)entat"on and Ana(y)") 2ata ;resentation is the second part of the report writing. It helps to analyze the sales of )hrestha Traders. In this chapter, presentation of various data of )hrestha Traders of last 7 years has been done by using tables, charts. 2ata presentation and analysis is the important part of report where we can find wea points and performance of limited years of )hrestha Traders. It helps to show the financial position of sales analysis of )hrestha Traders. .1 Sa(e) of D"fferent 2")ca( 1ear)0 This firm has been successful in maintaining its good sales over the years. In this part, the actual sales in different fiscal years have been illustrated. Together with this bar chart has been included. Ta'(e No. .1 Sa(e) of D"fferent 1ear) Aears 6&7CD&7$ 6&7$D&?& 6&?&D&?# 6&?#D&?6 6&?6D&?= )ales 5Bs8 %>,C7,&&& %C,6=,&&& %&,6C,&&& C7,=>,&&& %7,&6,&&&

Sales Fig. No. 2.1Yearly Sales 9000000 8000000 7000000 6000000 5000000 4000000 3000000 2000000 1000000 0 2058/059 2059/060 2060/061 2061/062 2062/063 Sales (Rs)

!rom above table, we can analyze that the firm is selling its product nicely yearly. The average sales is above Bs %&&&&&&D+. In the year 6&7CD&7$ the sales was Bs %>C7&&&D+ and in the year 6&7$D&?& the sales increased to s %C6=&&&D+. But in the year 6&?&D&?# the sales decreased to Bs %&6C&&&D+. This was due to stri es and

loc outs in :epal. This wasn"t all, the sales increased to Bs C76>&&&D+. But in year 6&?6D&?= the sales again decline i.e. Bs. %7&6&&&. . Sa(e) Co&3o)"t"on of Shre)tha Trader)0 )hrestha Trading is doing business of different stationery items. The sales composition is as follows3 ;aper items3 files, copies, diaries, writing pads etc. Writing items3 pens, ball pens, mar ers etc. )ports items3 balls, badminton, s ipping rope, football etc ;ins3 thumb pins, wall pins, stapler pin etc. @ther( cello tapes, sharpeners, erasers etc.

Eoo ing at the sales boo of the firm, following is the composition of )hrestha Trading for the fiscal year 6&7CD&7$ to 6&?6D&?=. Table 6.6 )ales 9omposition of )hrestha Trading Items ;aper items Writing items )port items ;ins @thers Total )ales 6&,7&,&&& 6&,#7,&&& #C,&%,&&& 7,&&,&&& ##,=&,&&& C&,&6,&&&

Eoo ing at the above table, the firm is selling 7 groups of products. In all part of :epal, the firm is selling paper items, writing items, sports items, pins and others. @ne composition view point, the most favorite group of product is the paper items. The firm has sold paper items only of Bs. 6&7&,&&&D+ and the second favorite is the writing items. Writing items are sold about Bs6&#7,&&&D+ during the fiscal year 6&?6D&?=. The least sold item was pins. )ome other items are also sold about Bs ##,=&,&&&D+.

!ig :o. 6.6 )ales 9ompositions

Paper Items Writing items Sports items Pins Others

In above pie chart, sale of 7 items of ? district of :epal is presented. The total amount of the sales of 7 items is Bs. %7&6&&& for last 7 years is converted in degrees. The above diagram, we found that a paper items has higher degree i.e. $C &. Ei ewise writing items has $%&, )port items C%& and others 7>&. But the least item is ;ins i.e. 6>&. A paper was effective items in sales analysis. Though paper items and writing items have higher degree than other item, all items play e'ual role in sale analysis. .% Prof"t) of D"fferent 2")ca( 1ear)0 Table :o 6.= ;rofits of 2ifferent Aears Aears 6&7CD&7$ 6&7$D&?& 6&?&D&?# 6&?#D&?6 6&?6D&?= Total )ales 5Bs8 ?C&,&&& ?$=,6&& ?,=6,76& %,&6,&&& ?,$C,&&& =>&7%6&
Fig No. 2.3 Profits of Different Years

720,000 700,000 680,000 660,000 640,000 620,000 600,000 580,000 2058/059 2059/060 2060/061 2061/062 2062/063

Eoo ing at the above table, we can find that the firm is earning good deal of profit. There"s consistency the profit but in the fiscal year 6&?&D&?# it was a rare case. %

In the fiscal year 6&7CD&7$ the profit was ?C&&&&D+ and in the year 6&?&D&?# the profit was Bs ?$=6&&D+. But due to stri es and loc outs the profit fell in the next year. But profit days were bac again in the year 6&?#D&?6. The profit Eoo ing was %&6&&&D+ in the year 6&?#D&?6 similarly the profit was ?$C&&&D+ in the year 6&?6D&?=. .* Reg"ona( Sa(e) of the 2"r&0 Though the firm has its main store in Butwal, it has been selling its goods all over :epal. It has different agents in those areas to sell the goods. The retailers also come to the main store to purchase the goods. It has main sales in following areas3 ;alpa :epaligun, ;o hara :arayanghat Bupandehi Fulmi

!ollowing are the list of sales in regional areas for the fiscal year 6&7CD&7$ to 6&?6D&?=3 Ta'(e .* Sa(e) "n D"fferent Reg"on) 2istricts ;alpa :epalgun, ;o hara :arayanghat Bupandehi Fulmi Total )ales 5Bs8 %,&%,&&& 6&,=>,&&& 66,6C,&&& C,&C,&&& 6&,6&,&&& 6,&7,&&& C&,&6,&&&

!rom above table, we can analyze sales in different areas. It depicts that the firm has selected ? areas for selling its goods. Those ? areas are ;alpa, :epalgun,, ;o hara, :arayanghat, Bupandehi and Fulmi. Among those ? areas the most favorite area was ;o hara in the fiscal year 6&?6D&?=. It has sold Bs 666C&&&D+ in that fiscal year. )imilarly the next favorite area to ;o hara was :epalgun,. The :epalgun, sales was Bs 6&=>&&&. Ei ewise sales in Bupandehi i.e Bs 6&6&&&&D+, :arayanghat Bs. C&C&&& and ;alpa Bs. %&%&&&. But the least sales area was Fulmi i.e. 6&7&&&D+.

!ig :o3 6.> )ales in 2ifferent Areas

Palpa Nepalgunj Po hara Narayanghat !upan"ehi #ulmi

In above pie chart, sales of ? districts is presented. The total amoun of sales i.e. Bs. C&&6&&& for last 7 years are converted into degree. !rom above diagram, we came to now that ;o hara is the best and effective area for the sales because it has higher degree i.e. #&&&. )imilarly :epalgun, and Bupandehi has $6& and $#&, ;alpa =6& and :arayanghat =?& respectively. But the least and poor are is Fulmi because it has lowest degree. .+ Re(at"on)h"3 'et$een Sa(e) and Prof"t0 In this part of the report, the relationship between sales and profit has been analyzed. !or this purpose, co+relation between sales and profit has been calculated. 9o+relation analysis enables in determining the degree and direction of relationship between two variables. As sales have a relation with profit with co+ relation of sales and profit, we analyze the magnitude and type of relation between them. The ca(cu(at"on of co4re(at"on 'et$een )a(e) and 3rof"t0 )ales 5G8 %7 %C %& C7 C& ;rofit 5A8 % % ? % % dxH G+A 7 C & #7 #& 5dx86 67 ?> & 667 #&& dyH A+B # # & # # 5dy86 # # & # # dxdy 7 C & #7 #&

dxH 5dx8IH dy 5dy8 dxdy

=C >#> H> IH> H=C

Eet A H%& and B H ? 9alculation of 9o+relation 5r83 r= n dxdy dx dy n dx 6 5 dx 86.x n dy 6 5 dy 8 6

7 =C =C > 7 >#> =C =C. 7 > > > #$& #76 6&%& #>>>. 6& #?
=C 67.&6 6 =C 7&.&>

H H H

H &.%? Inter3retat"on0 Therefore, the co+relation between sales and profit is 5r8 H &.%?, which shows positive relation between sales and profit. If sales increases, this will result increase the profit automatically. The co+relation is highly co+related, which shows high effect of sales on profit. Te)t"ng for Pro'a'(y Error0 ;robable error is an old measure of ascertaining the reliability of the value of ;ersonian 9oefficient of correlation. If r is the calculated correlation in a simple of n pairs of observations then its standard error, usually denoted by ).-. 5r8 is given by3
# r 6 n

).-. 5r8

# 5&.%?8 6 7 # &.7%%? 6.6> &.>66> 6.6>

H &.#$ ;.-. H &.?%>7x).-. 5r8 H &.?%>7x&.#$ H &.#=

#&

Inter3retat"on0 If rJ x ;@r, rJ &.%?>7, then r is definitely significant. . .a,or 2"nd"ng) of the Study #8 The maximum sales of )hrestha Traders were Bs C7,=>&&&D+ in the year 6&?#D?6 where the minimum sales was Bs %&,6C,&&&D+ that was in the year 6&?&D&?#. 68 The firm earned maximum profit was Bs %&,6C,&&&D+ . That was in the year 6&?#D&?6 and minimum profit was Bs ?=6,76=D+ in the year 6&?&D&?#. =8 The firm is selling its goods in ? different districts. >8 The most favorite areas of sales in ;o hara. 78 The firm is en,oying maximum sales in ;o hara. In the fiscal year 6&?6D&?=, it achieved sales of Bs 6&=>,&&&D+ in :epalgun, only. ?8 There is positive correlation between sales and profit of )hrestha Traders. As sales increases, profit also increase and vice+ versa.

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CHAPTER4III

SU..AR15 CONC!USION AND RECO..ENDATIONS

%.1 Su&&ary The fieldwor report has been prepared to ma e a study and evaluate the sales analysis of )hrestha Traders. @n preparing this report, it is carry to now the sales analysis of different places li e ;alpa, Bupandehi, :arayanghat, Fulmi, :epalgun, and ;o hara. Kpon the above analysis is made on the basis of various data collected. It can be concluded that ;o hara is the most favorite area for sales comparison to other areas. The firm sells stationary goods from India and other Asian countries. It sells stationary goods li e writing items, filing items, sports, pins etc. In the year 6&?#D&?6, the sales of )hrestha Traders was more i.e, Bs C7,=>,&&& where as the sale was less in the year 6&?&D&?# i.e. Bs %&,6C,&&&. !rom above data presentation, the year 6&?#D&?6 was the best sales for the )hrestha Traders. Thus, the main ob,ectives of these report is to analyze the sales and profit of )hrestha Traders. %. Conc(u)"on After analyzing the data of last 7 years of )hrestha Traders, we come to now that ;o hara is the best area as well as perfect area for sales. Ei e wise, Fulmi can say to be the poor area for the sales. In year 6&?#D&?6, sales of )hrestha Trader are more than in the year 6&?&D&?#. The reason for low sales is due to political in establishment, high commission and wea transportation. !rom above analysis of data, we find that profit of sales is high in year 6&?#D&?6 and low in year 6&?&D&?#. )imilarly, the correlation between sales and profit of the firm is &.%? which means there is positive correlation between them. ;rofit will automatically increase and they are high correlated. %.% Reco&&endat"on )ome of the recommendations are as follows3 #8 )hrestha Traders should ma e new strategies and new as well as best concept to increase more sales. )uch as advertisement and so on. 68 The firm should not focus in limited areas or places. =8 The firms seem to be conservative regarding promotion. )o, recommendation is given to focus on promotion and publicity too. >8 The firm should use modern method for increased of sales.

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