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 eye sight 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 customer 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. This report considers Sa!e" ana!y"#" of S#$rad# Trad#ng P%t. &td.' But(a! Branch which ma es an attempt to analyze the sales. It also analyzes all the aspects of sales with profit and other areas too. This firm (T-. provides vehicles related to TATA /ompany and services with necessary counseling to the customers. 0ue to its 'uality service it is famous among the customers all over the country 1epal. That"s the real business feature of the (T-., Butwal Branch It is located in different cities of 1epal but this research has been related only with the branch of Butwal. 1.) Re%#e( of &#terature While writing this report I have concerned different boo s written by different authors for the guideline where they define 2(ales Analysis3 depending upon their own views and ideas. 0ue to these views and ideas, those definitions of 2(ales Analysis3 were also differ from one another. Thus, definitions of 2(ales Analysis3 defined by different authors are given below4* According to 0r. 5.0. 5oirala 67&8% B(9, 2(ales Analysis3 as 2(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
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According to /.1. (anta

i 67&&#9, 2Any activities other than

personal selling, advertising and publicity can be called as sales analysis3. According to -hilip 5otler, 2(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 trade3. (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.* S#gn#f#cance of the Study This fieldwor report is about sales analysis of (ipradi Trading -vt. .td., Butwal Branch. (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. :esearcher has been tried to analyze sales and profit. (ales and profit are interrelated to each other. It 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 sales have been done in previous years. As well as how much profit is earned by (ipradi Trading -vt. .td., Butwal Branch.

1.+ O,-ect#%e" of the Study The specific ob+ectives of this study are as follows4* To analyze the sales trend of different fiscal years. To analysis the composition of sales of (T-., Butwal Branch. To analyze the profit of different fiscal years. To analyze the regional sales and total sales of (T-., Butwal Branch. To evaluate the relationship between sale and profit of (T-., Butwal Branch. 1.. Re"earch /ethodo!ogy 1...1 /ethod of data co!!ect#on In order to collect data to study on sales analysis of (ipradi Trading -vt. .td., Butwal Branch, various methods has been used. A. Pr#0ary data The data, which are collected for the first time is called primary data. To collect the primary data, direct interview has been ta en to the staffs of (T-., Butwal Branch. B. Secondary data The data which is not originally collected but rather obtained from other resources is called secondary data. Annual reports, official records, bulletins and previous reports are the sources of secondary data. 1...) Pre"entat#on and ana!y"#" too!" To present and analyze the collected data for the study, following tools has been used. Table Bar diagrams -ie charts -ercentage

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 /orrelation coefficient 1.1 &#0#tat#on" of the Study (ome limitations of this study are as follows4* The study is concern only on the sales aspect of (T-., Butwal Branch. This study covers only the Butwal Branch of (T-., Butwal Branch not as a whole. The study is mostly based on secondary data. It assumes that all published and unpublished data are accurate and reliable. =nly statistical tools have been used to analyze the data.

CHAPTER II DATA PRESENTATION AND ANA&2SIS 0ata -resentation is the second part of the report writing. It helps to analyze the sales of (T-., Butwal Branch. In this chapter, presentation of various data of (T-., Butwal Branch of last ; years has been done by using tables, charts. 0ata presentation and analysis is the important part of report where we can find wea points and performance of limited years of (T-., Butwal Branch It helps to show the financial position of sales analysis of (T-., Butwal Branch. ).1 Sa!e" Trend of STP&' But(a! Branch 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. 13 Sa!e" trend of STP&' But(a! Branch 2ear" 7&>7?&>; 7&>;?&>< 7&><?&>8 Total No of 4eh#c!e" 7<> ;#< ;%< $;< Sa!e" 5R". #n 666 7 88,;8,&& >%,8#,&& %$,<%,8& 7,&7,;;,8&

>

8#gure No. 13 Sa!e" trend of STP&' But(a! Branch

No of 800 Ve 600 hic les 400 200 0 2062/063 2063/064 2064/065 Total No of Vehicles Years

1000

!rom above table, we can analyze that the firm is selling its product nicely yearly. The average sale is above :s. 88,;8,&&,&&&. In the year 7&>7?&>; the sales was increased to :s. >%,8#,&&,&&&?*. In the year 7&>;?&>< the sales was increased to :s. %$,<%,8&,&&&. ).) Sa!e" Co0$o"#t#on of STP&' But(a! Branch (T-., Butwal Branch is doing business of different vehicles and parts items production by the TATA /ompany. The sales composition is as follows4* )eavy Truc s and Buses @ini Truc s and @ini Buses Trac s, /ars and Aeeps =ther (pare -arts (ervice :elated to TATA Behicles etc.

.oo ing at the sales boo of the firm, following is the composition of (T-., Butwal Branch for the fiscal year 7&>7?&>; to 7&><?&>8.

Ta,!e No. )3 Sa!e" Co0$o"#t#on of STP&' But(a! Branch Ite0" )eavy Truc and Buses @ini Truc s and @ini Buses Trac s, /ars and Aeeps =ther (pare -arts (ervice :elated to TATA Behicles etc. Total Sa!e" 5R". #n 666 7 C%88&& 78C&&& <8&&&& 78&&&& #C$C8& 7&7;;8&

.oo ing at the above table, the firm is selling 8 groups of products. In all part of 1epal, the firm is selling )eavy Truc and Buses, @ini Truc s and @ini Buses, Trac s, cars and Aeeps, =ther (pare -arts and (ervice :elated to TATA Behicles etc. =ne composition view point, the most favorite group of product is the )eavy Truc and @ini Buses. The firm has sold )eavy Truc and Buses items only of :s. C%,88,&&,&&& and the second favorite is the Trac s, /ars and Aeeps. Truc s, /ars and Aeeps are sold about :s. <,8&,&&&,&&& during the fiscal year 7&><?&>8. 8#gure No. )3 Sa!e" Co0$o"#t#on of STP&' But(a! Branch

Heavy Truck and uses Tracks" #ars and $ee%s 'ervice )elated to T*T* Vehicles etc+

!ini Trucks and !ini &ther '%are (arts

uses

In above pie chart, sale of 8 items of > district of 1epal is presented. The total amount of the sales of 8 items is :s. 7&7;;8&&&& for last ; years is converted in degrees. The above diagram, we found that a heavy truc and buses items has higher degree i.e. #88&. @ini Truc s and @ini Buses item

has <>&, Trac s, /ars, Aeeps C&& and (ervice <<&. But the least item is -ins i.e. ;8&. A service was effective items in sales analysis. Though heavy truc and buses items have higher degree than other item, all items play e'ual role in sale analysis. ).* Prof#t" of STP&' But(a! Branch Ta,!e No. *3 Prof#t" of STP&' But(a! Branch 2ear" 7&>7?&>; 7&>;?&>< 7&><?&>8 Total Sa!e" 5In R".7 >&,;7,87& %#,&7,&&& <8&C,&&& #%><787&

.oo ing at the above table, we can find that the firm is earning good deal of profit. There"s consistency the profit in the fiscal year 7&>7?&>; it was the profit was :s. 7&;787&. In the fiscal year 7&>;?&>< the profit was :s. <8&C&&& and in the year 7&><?&>8 the profit was :s. <8&C&&&. 8#g No. *3 Prof#t" of STP&' But(a! Branch
8000000 ,000000 A 6000000 m 5000000 ou nt 4000000 in 3000000 Rs 2000000 . 1000000 0 2062/063 2063/064
Year

2064/065 'ales - .n )s+/

9999999999999999999999999999999999999999999999999999999999999999999999999999999 ).+ Reg#ona! Sa!e" of the STP&' But(a! Branch

#&

Though the firm has its main store in 5athmandu, it has been selling its goods all over 1epal. It has different agents in those areas to sell the goods. The retailers also come to the main store to purchase the goods. !ollowing are the list of sales in regional areas for the fiscal year 7&>7?&>; to 7&><?&>8 Ta,!e No. +3 Sa!e" #n D#fferent Reg#on" of STP&' But(a! Branch D#"tr#ct" -alpa 1epalgun+ -o hara 1arayanghat :upandehi Dulmi Total Sa!e" 5R" #n 666 7 7%88&& 78C&&& 88&&&& 78&&&& <C$C8& 7&&&&& 7&7;;8&

!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, 1epalgun+, -o hara, 1arayanghat, :upandehi and Dulmi. Among those > areas the most favorite area was -o hara in the fiscal year 7&>;?&><. It has sold :s 88&&&&&&& in that fiscal year. (imilarly the next favorite area to was :upandehi i.e. :s. <C$C8&&&&. In 1arayanghat, sales was :s 78&&&&&&&. .i ewise sales in -alpa i.e :s 7%88&&&&&, 1epalgun+ :s. 78C&&&&&& and the least sales area was Dulmi i.e. :s. 7&&&&&&&&.

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8#gure No. +3 Sa!e" #n D#fferent Reg#on" of STP&' But(a! Branch

(al%a

Ne%al0un1

(okhara

Narayan0hat

)u%andehi

In above pie chart, sales of > districts are presented. The total amount of sales i.e. :s. 7,&7,;;,8&,&&& for last ; 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. $C&. (imilarly :upandehi has C%&, -alpa was <$&, 1epalgun+ <>&, 1arayanghat <8& and Dulmi was ;>& respectively. But the least and poor are is Dulmi because it has lowest degree. ).. Re!at#on"h#$ Bet(een Sa!e" and Prof#t of STP&' But(a! Branch In this part of the report, the relationship between sales and profit has been analyzed. !or this purpose, correlation between sales and profit has been calculated. /orrelation 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.

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Ta,!e No. .3 Corre!at#on ,et(een "a!e" and $rof#t of STP&' But(a! Branch Sa!e" 5:7 %8 %C %& C8 C& Prof#t 527 % % > % % d; < :9 A 8 C & #8 #& 5d;7= 78 >< & 778 #&& dy < 29 B # # & # # 5dy7= # # & # # d;dy 8 C & #8 #&

dx
E ;C

6dx9F
E <#<

dy 6dy9 dxdy
E< F E< E ;C

.et A E %& and B E > /alculate the /orrelation 6r9

r= n dxdy dx dy n dx 7 6 dx 97.x n dy 7 6 dy 9 7

8 ;C ;C < 8 <#< ;C ;C. 8 < < <

E

#$& #87 7&%& #<<<. 7& #>

;C 78.&7 7

;C 8&.&<

E &.%>

Therefore, the correlation between sales and profit is 6r9 E &.%>, which shows positive relation between sales and profit. If sales increases, this will result increase the profit automatically. The correlation is highly correlated, which shows high effect of sales on profit. Te"t#ng for $ro,a,!y error -robable error is an old measure of ascertaining the reliability of the value of -earson correlation coefficient. If r is the calculated correlation in a simple of n pairs of observations then its standard error, usually denoted by (.,. 6r9 is given by4 (, 6r9 E
# r 7 n

# 6&.%>9 7 8

# &.8%%> 7.7<

&.<77< 7.7<

E &.#$

#;

-, E &.>%<8 (, 6r9 E &.>%<8 &.#$ E &.#; > -, E > &.#; E &.%C (ince > -, G r, so the value of r is insignificant. In above calculation it seems that the value of r is lower than the value of > -,. !rom this fact, we can say that the (T-., Butwal Branch is not able to earn profit as per as sales. ).1 /a-or 8#nd#ng" of the Study The maximum sales of (ipradi Trading -vt. .td. Butwal Branch were :s. %$,<%,8&,&&& in the year 7&><?&>8 where the minimum sales was :s. 88,;8,&&,&&& that was in the year 7&>7?&>;. (ales trend of (T-. is in increasing during the study period. The sale composition of (T-., Butwal Branch is consists on )eavy Truc s and Buses, @ini Truc s and @ini Buses, Trac s, /ars and Aeeps, =ther (pare -arts and (ervice :elated to TATA Behicles etc. A sale of (T-., Butwal Branch is highest in )eavy Truc s and Buses and lowest in (ervice :elated to TATA Behicles etc. The firm earned maximum profit of :s. %#,&7,&&&. That was in the year 7&>7?&>; and minimum profit was :s. <8&C&&& in the year 7&>;?&><. The firm is selling its goods in > different districts. =ut of them the highest sales areas of (T-., Butwal Branch in -o hara and the lowest sales area is Dulmi. There is positive correlation between sales and profit of (T-., Butwal Branch. As sales increases profit also increase and vice versa. But the profit is not increase according to the sales.

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CHAPTER III SU//AR2' CONC&USION AND RECO//ENDATION *.1 Su00ary The fieldwor report has been prepared to ma e a study and evaluate the sales analysis of (ipradi Trading -vt. .td., Butwal Branch. =n preparing this report, it is carry to now the sales analysis of different places li e -alpa, :upandehi, 1arayanghat, Dulmi, 1epalgun+ and -o hara. Hpon the above analysis is made on the basis of various data collected. To conduct the study ****************************************************************************** *.) Conc!u"#on After analyzing the data of last ; years of (ipradi Trading -vt. .td., Butwal Branch we come to now that -o hara is the best area as well as perfect area for sales. .i e wise Dulmi can say to be the poor area for the sales. (ales of (T-., Butwal Branch are in increasing trend during the study period. -rofit is not increasing according to the increase in sales. The reason for low sales are 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 7&><?&>8 and low in year 7&>7?&>;. (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. The firm sells vehicles goods from India and other Asian countries. It sells vehicles goods li e vehicle items )eavy Truc and )eavy Bused, @ini Truc , @ini Buses, Trac s and Aeep etc. In the year 7&><?&>8, the sales of (ipradi Trading -vt. .td., Butwal Branch was more i.e, :s %$,<%,8&,&&& where as the sale was less in the year 7&>7?&>; i.e. :s 88,;8,&&,&&&. !rom above data presentation, the year 7&><?&>8 was the best
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sales for the (ipradi Trading -vt. .td., Butwal Branch. Thus, the main ob+ectives of these report is to analyze the sales and profit of (ipradi Trading -vt. .td., Butwal Branch. *.* Reco00endat#on" (ome of the recommendations to the (T-., Butwal Branch are as follows4* (ipradi Trading -vt. .td., Butwal Branch should ma e new strategies as well as best concept to increase more sales. (uch as advertisement and so on. The firm should be used to modern method of selling to increase the sales. The firm should not focus its mar et in limited areas or places. It should be increase its mar et in the others feasible areas. The firms seem to be conservative regarding promotion. (o, recommendation is given to focus on promotion and publicity also. The firm can not earn profit according to its sales, so it should be recommend that firm should be control to its operating cost

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