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INTRODUCTION

Today marketing must be understood not in the old sense of


making a sale telling and selling but in the new sense of satisfying
customer needs. If the marketer does a good job of understanding consumer
needs; develops products that provide superior value; and prices, distributes,
and promotes them effectively, these products will sell very easily. Thus,
selling and advertising are only part of a larger marketing mix a set of
marketing tools that work together to satisfy customer needs and build
customer relationships. Broadly defined, marketing is a social and
managerial process by which individuals and group obtain what they need
and want through creating and exchanging value with others. In a narrower
business context, marketing involves building profitable, value laden
exchange relationships with customers. Hence, we define marketing as the
process by which companies create value for customers and build strong
relationships in order to capture value from customers in return.

Marketing is the business function that identifies customer needs


and wants. Creating customer value and satisfaction are the heart of modern
marketing thinking and practice. Marketing is the delivery of customer
satisfaction at a profit. Many people think of marketing only as selling &
advertising are only the tip of the purpose of creating value and satisfying
needs & wants.

Media plays a vital role in these days. One such kind of media
is done through paper. Paper has been playing key role since good olden
days.

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Despite of the numerous communications tools such as electronic
media, information technology, there is a tremendous change is
communication system. Paper has lost its significance.

Paper is an eco-friendly product. It is produced using natural


raw materials. And the end product paper is biodegradable. The paper had no
real competing product rated as a substitute. For paper has lost the race as
non-biodegradable. Electronic media was considered as a threat to the
growth of paper usage by the print media.

Print a uniquely preserves information and propagates through


and promotes literacy. There is hardly any other product, which can
command such social, cultural, and economic value as paper.

Marketing:

Peter F. Drucker quotes that Marketing is so basic that it


cannot be considered a separate function. It is the whole business seen
from the point of view of its final result that is from the customers point
of view. Business success is not determined by producer but by the
customer

Philip Kotler has defined marketing as It is social and managerial


process by which individuals and groups obtain what do they need and want
through creating offering and exchanging products of value with others

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NEED FOR THE STUDY

Paper, an eco friendly product plays a vital role in the human life;
paper is a unique useful product.

Paper contributes more to social, cultural and economic development.


Hence, there is much need to study the paper industry.

Paper meets the basic needs of the modem society by contributing to


the communication, education, packaging and hygienic purposes.

The demand for paper is growing from time to time. Paper industry
has been defined as the core industry by the government of India.

With the increase in the literacy rate and growth of economy, the
increase in the perception consumption of paper is expected.

In view of the paper industries strategic role for the overall industrial
growth and also for the society it is necessary that the paper industry
should perform well.

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OBJECTIVES OF THE STUDY

The project reports entitled marketing mix of Delta Paper Mills


have been carried out with the following objectives:

To understand the paper industry in India

To study overall marketing activities of Delta Paper Mills Limited

To know the varieties of paper produced by Delta Paper Mills


Limited.

To study the pricing methods and discount policies of the company

To know the promotional strategies of Delta Paper Mills Limited

To study the distribution management of paper of Delta Paper Mills


Limited.

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METHODOLOGY OF THE STUDY

Methodology is a systematic procedure of collecting


information in order to analyze and verity a phenomenon. The collection of
information has been done by

1. Primary Data

2. Secondary Data

1. Primary Data

The primary data are those which are collected and for the first
time and thus happen to be original in character.

2. Secondary Data

It is the information collected from already published sources.


The sources that have been used for this data collection are

1. Magazines
2. Text books on marketing and paper
industry.

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LIMITATIONS OF THE STUDY

The present study entitledA study on marketing mix of Delta


Paper Mills Limited is mainly consists to the evaluation of marketing
aspects of the Delta Paper Mills Limited.

The coverage of the study is limited to the problems and


prospects of Delta Paper Mills Limited. The stud suffers from the following
limitations.

The period of study is limited.


The Delta Paper Mills Ltd. Is a privates organization wants to
maintain secrecy. So is become difficult to collect all the necessary
information related to the marketing activities.
Despite of the employees are good and cordial they are unable to
spend their valuable time because they are busy with their work.
Here the study is only a marketing aspect of the company. So, it is
impossible to assets the companys performance busing on these data.

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INDUSTRY PROFILE

The world is becoming increasingly dependent upon


communication and information. Paper has presently consequential roll to play.
The increase in literacy growing trend of higher ratios of professional and technical
jobs in working force and growing economic activity are bound to raise the
consumption of paper.

Indeed it involves itself in a wide range of activities from the WHITE


HOUSE office releases to kindergarten copy writing.

EVOLUTION OF PAPER MAKING


Paper owes its origin etymologically to PAPYRUS an adequate plant
grows abundance in the delta of NILE in EGYPT. The back sand leaves of
plant were woven and passed into a sheet to be used as writing material by
ancient Egyptians in 500 B.C.

The art of paper making first developed by China in 200B.C. and made
from bark leaves of Mulberry tree. In751AD the Arabs and Europeans acquired
from the Chinese prisoners. In 1799 Robert Nicholas of France invented paper
machine.

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In751AD the Arabs and Europeans acquired from the Chinese prisoners. In1799
Robert Nicholas of France invented paper machine.

BRIEF HISTORY OF PAPER INDUSTRY:-

Up to year 105 A.D. the product paper was not well know and till then
things were written on tree leaves.

In 751 A.D. the Arabs imported the knowledge of paper working with the
help of Chinese. Later the arty of paper making was spread to European and
central countries of world started in 1336 A.D in Germany, and later it was
spread to other countries of the world.

Chlorine gas waste was first used in 1729 A.D. for the bleaching of
the pulp. Robert Nicholas was the scientist who designed the first paper machine
of the world in 1799 A.D. Present paper machine was designed by Brumen
Donkilu after a series of efforts.

In 1862 A.D. the road pulping process was introduced in England. The
consumption of Rosin to Aluminum was started in 1900 A.D. After a number of
technical methods, the present paper industry reached its present position.

HISTORY OF PAPER INDUSTRY IN INDIA:-

Nothing can be said about the first paper Mill in India. But it was said
that William Varner, in 1812 started the first paper Mill at Berhampur with the
help of Kagazius in 1932

Four dive machines were installed and introduced in India. Royal


back paper mill was started at Hubli in 1870 and was merged in telethon paper

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mills. Telethon paper mills started the preparation of pulp from bamboo in 1912
and later the remaining paper mills were established.

ABOUT PAPER:

ORIGIN OF PAPER:

The word paper derives from the Egyptian word PAPYRUS. The
ancient Egyptians used papyrus sheets made from the stem tissue of the
plant Cyprus papyrus about five thousand years back. The Aryans used dried and
processed palm leaves and thick bark sheets of the blot paper for writing.
However the credit of paper inventing goes to the Chinese scholar Tsai Lone.
He invented the paper in 105 A.D. he pressed rotten bark lamp in to pulp and
pressed out the liquid. The pulp then remained was made dry in the sun light
and the resulting uneven rough sheet was found better for writing. That was the
first sheet of paper produced.

The first paper machine was the result of experiment done by


partnership consisting of John Gramble, Hall and really found rises and over
engineer Brayanb Donkin of Donking and hall in 1803.

MANUFACTURING PROCESS:-

The basic raw materials used are straw, pulp, bagasse, waste paper,
gunny, and wood pulp sheets.

1) Paddy straw ----------> East & West Godavari, Krishna district.

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2) Bagasse ----------> Hanuman junction, Chagallu, Chelluru,
Nellore.

3) Waste paper ----------> Vijayawada, Rajahmundry.

4) Gunny ----------> Akiveedu, Ravulapalem, Guntur.

5) Wood pulp sheets ----------> J.K. paper mills.

RAW MATERIALS:-

The raw materials bagasses are cut into pieces by cutters, and passes
through depicter where the pith is remove from the bagasse. The gets
cleaned, dewatered and then taken to MCD digester through conveyor belts. In
MCD digester chemicals like caustic soda (11%) is added and steam is passed
and cooks the material for 2 hours. The capacity of the MCD digester is 4.0 to
4.5 metric tons. Here the color of the pulp is black. The cooked pulp is taken to
RPS tower, then SDR refiner, and the waste in pulp is detected and separated.

The raw material straw is also processed in similar manner. The


straw is cut in to pieces by cutters, passes through shuttle conveyor to Rotary
digester. Chemicals like caustic soda (5.5%), sodium sulphite (1.5%) is added
and cooked for 2 hours. The Rotary digester rotates and mixes the material. The
capacity of the Rotary digester is 3.5 metric tons. The steam is given at 7 kgs
pressure to the pulp, and then the pulp is taken to blow tank. Thus the sub
outputs are obtained.

The sub out puts of bagasse, straw, waste paper, and gunny are mixed
for stock preparation. The sub outputs are mixed in the following ratios.

Straw & bagasse ----------> 70 % (straw 20%, bagasse 50%)

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Waste paper ----------> 20 %

Gunny ----------> 10 %

In the S.R box various chemicals are added, they are

Alum ---------> 5 to 6 %

Fortified rosin dyes ----------> 1%

Whitening agent ----------> 4 kgs

The pulp is passed to the head box, here the pulp has only 3% of paper
and rest is water so, water is separated from the pulp by various methods like
press part dryer part, calendars, pope reel, re-winders. Thus the paper rolls are
obtained. Now the sheet cutter cuts the paper rolls in different required sizes.
The paper sheets are taken finishing house and packing take place. The each
packet contains 500 sheets. The packets dispatched.

CLASSIFICATION OF PAPER:-

In this modern era, paper is used for a variety of purposes, paper, and
a uniquely useful product, preserves information and thoughts. It plays a vital
role in the protection of the environment as paper is eco friendly product.

And it can be classified as follows.

1. Cultural paper:
It includes paper used for books and printing and writing etc.

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2. Industrial paper:

It includes paper used for bag making, warping paper, and craft paper
folding Bag, paper newsprint etc.

3. Structural paper:
It includes wallpaper tissue paper, towel paper and the like.

HISTORICAL DEVELOPMENT OF PAPER

YEAR DEVELOPMENT
200 B.C
Birth of paper concept in china by T sai Luna.
100 A.D Traces of authentic paper making process.

1798A.D Patent issued to Nicholas- Louis Robert for first continuous paper
machine.

1803-1807 A.D Patents issued 4chinese brothers for improving continuous paper
machine.

1829A.D Patents issued to john Dickinson for cylinder paper machine.(England)

1840A.D Ground wood pulping method developed.

1854A.D First manufacturing of pulp wood use soda process.

1867A.D Patent issued to Benjiman Tilghmon for sulphite pulping process.

1884A.D Invention of craft pulping process by Carl Paul.

1976A.D Bi-Sulphate pulping and Oxygen dezincification of agro-based


industries.

Orange-salvo pulping of bagasse with recovery.


1984 A.D

HISTORY OF PAPER MACHINE IN INDIA


The art of papermaking reached India through Arabs but kept secret
by few families in Punjab& Kashmir. Handmade paper was prevalent in
Akbars regime. In India paper was initially made from the BIRCH tree

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back. In 1812 William Karley started paper machine in Singapore in West
Bengal
PAPER INDUSTRY IN GLOBAL PERSPECTIVE
PER CAPITA CONSUMPTION (KG)
COUNTRY
USA 289

CANADA 251

GERMANY 205

SWITZERLAND 168

JAPAN 153

ENGLAND 135

GREECE 79

SINGAPORE 60

USSR 32

BRAZIL 26

EGYPT 10

CHINA 5

INDIA 3.5

INDONESIA 3

India per capital consumption per annum of paper is merely 3.5 kg as


against 334 kg of US, 224 kg of Japan, 134kg Taiwan, 12kg of China, 805kg
of Philippines, 17kg of Thailand,31kg of Malaysia, 150kg of
Newzeland,140kgof Hong Kong and 150kg of Australia and other countries.

In Concrete terms, more than 60%of the trade of pulp wood more than
50% of the trade of the paper and paper board more than 80%of the trade of

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news print and more than 60%of printing and writing paper are controlled by
4 to 5 nations on either side of the transactions. Low per capital consumption
of the south is the underlying on either side of the transaction.

PAPER INDUSTRY IN INDIAN SCENARIO

During the First World War (1914-1918) the industry made a progress
on account of heavy demand but inconsequent years. Paper industry in India
is little over 100 years old. Initially it was started as cottage industry and
later developed in private and joint sector.

Now the government has inclined to develop the industry in public


sector. The growth may be studied in terms of installed capacity, production
capital, employment and literacy.

DEVELOPMENT OF PAPER INDUSTRY IN INDIA

According to historic records the first paper mill was set up in


1812AD. It was only after 1870s manufacturing of papers gain momentum
with the establishment of ROYAL BASE PAPER MILL at Holly which
was later merged with Tita ghar paper mill from than words the production
of paper has been constantly demand of paper 1 the country.
At present about 288 mills are in function with over all installed
capacity of 2450lakh tones. Out of this huge amount of production capacity
40%of the production is from small-scale mills and only 2mills are given
under taking.

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Only 47 mills have an annual installed capacity of 10000 tones.
According to recent survey India was in back seat its comparison of
America, Canada, Sweden and Japan India is in back seat because of large
population and high literacy.

PER CAPITA CONSUMPTION OF PAPER IN INDIA

According to Arun gosh paper per capital consumption may be


regarded as an index of countrys cultural, educational and economical
level. Per capital consumption depends upon developments, per capital
depend upon development in the industrial production national income,
literacy and growth of population.

Presently Indias per capital consumption of paper is around 5kg in


comparison to 18kg USA 32kg and world average of 47.7kg.

PER CAPITA CONSUMPTION OF PAPER IN INDIA

YEAR CONSUMPTION (KG)


1951 0.46
1961 0.87
1970 1.40
1980 1.39
1985 1.76

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1990 1.29
1995 2.20
1999 3.40
2000 5.00
2005 6.50

PRESENT INDUSTRY POSITION

Paper industry is fragmented with a capacity of mills ranging from


less than 10T to 600 TPD. There are 380 paper mills, which lakh are
producing paper in our country. The rate of growth of paper is around 5%
per annum.

The overall installed capacity of is around 44 lakh tones while the


production is around 32.5 iakh tones. Out of which 29-lakh tones are paper
and paperboard and 3.5 lakh tones comprises of newsprint.

Raw Materials being used by the paper mill around 37% of the
production are dependent on wood, 31% depended on agro and remaining
32% is depended on upon waster paper.

According to the information provided by the Hindu Survey of Indian


Industry 1997 it was mentioned that around 3.0 kgs likely to go up to 4.0 kg
by the year 2000. The demands for paper and various paper products are
likely to increase to 67.5 Lakh tones by the year 2005.

Indian Paper Industry

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Paper and Paper Board News Print

Stand Board Glazed

Cultural Industrial Board

Specialty

Writing Printing wrapping packaging

Indian Industry produces all the above types of papers. The


number of mills producing various products is clearly explained in given
table.

Product No. Of units TOTAL


OPEN CLOSE
Board 43 7 50

Cultural 136 41 177

Industrial 165 21 186

Special 12 3 15

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It is quite clear from the above table that out of all different types
products available in the Indian paper industry, industrial paper is most after
product after product, and is being produced by large number of paper mills.

PAPER INDUSTRY IN ANDHRA PRADESH

AP is the 5th largest and 4th population state in India. AP ranks as the
10th literacy. AP obtained the cheapest subsidy i.e. 14.05 crores in 1986-87
under the scheme of decentralization. Paper mills are well dispensed with
every alternative district has at least one unit.

AP is the most developed states I terms of paper production .It is often


provided excellent platform for the development of paper mills. The state
now contains 21 paper mills scattered all over the state. It place 5 th position
of paper mills. InAP15 mills out of 21 mills, which are remaining has
been expectation of work excellence, as they remained close these days.

AP stands second in terms of installed capacity. The installed


capacity of AP is 4.43Lakh tones per annum.
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The different mils situated in AP and then installed capacities are clearly
mentioned below.

LIST OF PAPER MILLS IN AP


Sl. NAME LOCATION CAPACITY
NO (TPA)

1 M/S CHARMINAR PAPER MILL LTD MEDAK 3000

2 M/S CIRCAR PAPER MILL LTD NELLORE 10000

3 M/S COASTAL PAPER MILL LTD KADIAM 10000

4 M/S DELTA PAPER MILL LTD VENDRA 18000

5 M/S GUARDIAN PAPER MILL LTD BAMMURU 10000

6 M/S ITC-BHADRACHALAM PAPER BOARD MILL LTD BHADRACHALAM 83923

7 M/S JYOTHI CELLULOSE LTD MEDAK 2700

8 M/S KOLLERU PAPER MILL LTD ELURU -

9 M/S PENNAR PAPER MILL LTD 10000


CUDDAPH
10 M/S RAYALASEEMAPAPER MILL LTD KURNOOL -

11 M/S ROLEX PAPER MILL (P) LTD PALAKOL 6500

12 M/S NAGARJUNA PAPER MILL LTD PATHANCHERUVU 10000

13 M/S SANDEEP PAPER MILL LTD PATHANCHERUVU 4950

14 M/S SHREE PAPER MILL LTD RANGAMPETA 4000

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15 M/S SRI LSP LTD BODEN 15500

16 M/S SURYACHANDRA PAPER MILL LTD MANDAPETA 6000

17 M/S APPM RAJAMUNDRY 101447

18 M/SSRI SIRIPUR PAPER MILL LTD SIRIPUR 71000

19 M/S TELANGANA PAPER MILL LTD KHAMMAM 10000

20 M/S VAMSADHARA PAPER MILL LTD SRIKAKULAM 7500

YEAR PRODUCTION (IN LAKHS)


2002-03 79.00
2003-02 113.50
2004-05 284.50
2005-06 434.12
2006-07 623.40

So it is clear that the leading paper machines in terms of production


are the APPML and ITC-BPBL will no doubt make up AP the leader in
production of paper in India.

PAPER INDUSTRY IN W.G.DT

In the early 1970s when country was faced with a paper famine, the
government adopted a policy of encouraging small paper mills because of
short generation period, the use of cheap and second hand machinery readily
available in foreign countries.

W.G.Dt. is considered as Rice Bowl of AP70% of population in the


district depends upon primarily on Agriculture for livelihood.

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Since the small paper mills are agro based ones, like straw,
begasse, jute stalks for making paper; there was a lot of potentiality for
paper industry in the district. Today there are 3units existing in the district.

M/S DELTA PAPER MILL LTD

M/S ROLEX PAPER MILL LTD

M/S GOWRIPATNAM PAPER MILL LTD

All these units are agro based industries. More over these units are
incorporated as small paper mills with an installed capacity of about 10 to 20
TPD.

NEWS PRINT CONSUMPTION


The country first news print factory at NEPA Nagar with a capacity of
3000 tons per annum began production in 1956.

Mysore paper mill in Karnataka and Hindustan paper mill in Kerala


with installed capacity of 75000&80000 tones per annum.

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PAPER INDUSTRY IN INDIA AT A GLANCE

SL.NO. NAME OF THE STATE UNITS INSTALLED PRODUCTION


CAPACITY

1 ANDHRA PRADESH 21 4.106 2.173

2 ASSAM 04 2.208 1.084

3 BIHAR 08 0.915 0.024

4 GUJARAT 45 2.743 1.673

5 HARYANA 17 1.496 1.110

6 KARNATAKA 15 1.933 1.770

7 JAMMU&KASHMIR 01 0.033 0.009

8 HIMACHAL PRADESH 13 0.094 0.215

9 KERALA 03 0.393 -

10 MADHYA PRADESH 15 1.813 0.991

11 MAHARASTRA 52 4.677 3.555

12 NAGALAND 01 0.030 0.218

13 ORISSA 07 2.136 -

14 PUNJAB 17 1.378 0.820

15 RAJASTAHAN 09 1.433 0.064

16 TAMILNADU 21 2.051 1.616

17 UTTAR PRADESH 58 3.120 2.092

18 WEST BENGAL 21 2.051 1.616

19 CHANDIGARH 01 0.030 0.016

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FUTURE PROSPECTS OF INDUSTRIES IN INDIA

Paper demand in the country is bound to grow at a fast pace as the


economy is growing at about 4 or 5%annually and the middle-income group
is expanding day to day. India has one of the lowest per capital
consumption of paper at meager 2.1kg compared to 20kg in Japan.
Therefore the most studies on the paper industry have concluded that paper
demand would grow at fast pace. Hence to meet this need or demand the
changes must be brought into the paper industries. It is said that government
must take good policies

To increase to production quantity and quality of the product more


and more good technology must be imported new capacity have to be
created and old capacity must be modernized.

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COMPANY PROFILE

Delta Paper Mills Limited was established in 1975 and is situated


at Vendra Village, West Godavari Dist., and Andhra Pradesh. The Company
manufactures Writing and Printing Papers of different cultural varieties such
as Cream wove, White Printing, Azure wove, Azure laid, Duplicating etc.

The Company uses unconventional Raw Materials like Paddy Straw and
Bagasse. It went into commercial production in 1978 with an initial installed
capacity of 9000 MTs per Annum. Subsequently in 1982, the Company
envisaged expansion of the capacity to 18000 MT, successfully completed
the same and started the commercial production during 1988.

The main objective of this Establishment was to use Agro residues


and cater to the needs of the farmers. It is the first Company to utilize
Natural Gas supplied by Oil & Natural Gas Corporation in entire South
India.

To keep the environmental balances, the Company has taken up


plantation of trees in and around the Mill Premises. It has got full-fledged
Effluent Treatment Plant. The Company is providing employment for about
2000 persons directly and indirectly mostly to rural youth.

The Company has developed superior quality of paper called Super


Deluxe Cream wove and penetrated into the market with good results. It
has a strong marketing network. The majority of Sales comprises to the
Government Department viz., Government Text Book Corporation of
Andhra Pradesh, Maharashtra, Madhya Pradesh, Tamilnadu, Kerala, and
other Central/State Government Agencies through DGS&D Rate Contract.

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The Company enjoys patronage of private market distributors and also
having a brand name and image. Its Delta Hasti Duplicating Paper and
Note Books are very popular.

In the year 1988, Sri Gokaraju Ganga Raju, Promoter. Head of Laila
Group, Managing partner of M/s. Chemiloids, Herbal Pharma Extract Unit
and an Eminent Industrialist in Andhra Pradesh has taken over the
Management of the Company and turned the corner and achieved its
capacity utilization to an extent pf 144% . The Management has installed
one more Paper Machine and commissioned the same during December
2004. With this, the Companys production level is increased to 42,000 MT
per Annum of Writing & Printing papers.

For Further development of the quality of paper, full utilization of


capacity and for pollution abatement, the Company has embarked Mill
Development Programme under which the Pulp Mill is upgraded for pulping
Bagassee by installing Continuous Digester System. This has to be done
since for abating pollution. Straw pulp cannot be used as the waste liquor
form paddy straw pulping cannot recover the chemical, as well as the fuel
value and hence the Company has switched over to Bagasse pulping.

This has increased the requirement of Bagasse substantially with a


simultaneous drastic reduction in paddy straw usage. Though all effort that
are required for procuring Bagasse from other Sugar Mills are made its
availability has become difficult in view of fact that most of the Sugar Mills
are using their Bagasse for their Captive Power Generation. The
Management had the foresight and vision and anticipation such a situation,

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have procured Sugar Mills, when the AP Govt. started disinvesting in Co-
Operative Sugar Mills. Delta Sugars Ltd is one such Mill.

The Management has also installed coal fired boiler in Delta


Sugars Limited. Hanuman Junction so that Bagasse can be released for use
as raw material for the Paper Mills. Thus, the Company is procuring almost
40-50% of its bagasse requirement from its sister concern, M/s Delta Sugars
Limited, Hanuman Junction, besides the procurement of Bagasse from other
Sugar Mills in and around West Godavari District.

The Company has also installed a 9.9MW Power Plant. In Entire


South India out of Agro-Based Paper Mills, the Company is the only Mill
installed Chemical Recovery Plant for abating the pollution.

With all these developments, the Company is now producing at the rate of
51,100MT per annum of Quality Writing and Printing Papers.

Board of Directors:

Dr. G.Ganga Raju Chairman


Sri G.V.K.Ranga Raju, Managing Director
Sri G.Rama Raju Executive Director
Sri G.V.Narsimha Raju Director
Smt. Bh.K.K.Kasturi Director
Sri M.Subba Raju Director
Sri A.Narasimha Rao Director

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QUALITY POLICY

Delta Paper Mills has been successfully in unifying the quality with
eco friendliness. The Company strictly follows the standards of quality. This
is reflected in the wide acceptance of its products around the country.

Delta Paper Mills manufacturing 100% Virgin Pulp by using Sugar


Cane Bagasse as Raw Material procured from their own Industry and from
other surrounding Sugar Factories situated in around 100 K.Ms.

MISSION

Delta Paper Mills Ltd is committed to actively promote the safety,


health and well being of all its personnel. Delta Paper Mills Ltd will ensure
that these aspects are inbuilt and become integral part of its operations and
strategic planning.

Delta Paper Mills Ltd also is committed to make available


necessary funds, resources and any such means required to implement the
occupational health, safety and welfare (OHS & W) policy and commits to
ensure:

A safe work culture that minimizes the risk of injury or illness to


its personnel.

Adequate facilities at work places.

Regular training, instructions and information to all its personnel on


OHS & W.

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To meet these provisions Delta Paper Mills Ltd is committed to:

Meet its responsibility of care and well being of all persons in Delta
Paper Mills Ltds work places including visitors, contract workmen,
casual workmen and trainees.

Comply with relevant OHS & W legislation, code of practices and


standard.

Implement an effective Hazard Management Policy.

The right of employees to demand for safe working environment and


shall strive to provide the same.

Have effective two-way communication with all its employees for a


better and safe work culture.

Due to manufacturer of Virgin Pulp, DPML qualifies various Rate Contracts


from State / Central Government Departments for supply of different grades
of papers. Delta Paper Mills has full-fledged Laboratory and equipments to
meet the specifications of B.I.S and DGS&D supplies quality.

VISION

DELTA PAPER MILLS LIMITED, Vendra is committed to satisfy our


customers, for the products we develop and supply with an emphasis on

Customer requirements at competitive prices.

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Use of Eco friendly systems to the extent possible.

Continuous process of improvement for betterment in quality.

Continuous interaction between the Mills, Suppliers, Dealers


and Customers.
STRENGTHS

Manufacture of cultural varieties of paper by using virgin pulps of


Agricultural residues.

- Modern and proven technological use of Natural Gas, Agro based residues
viz., pith from bagasse, rice husk etc. for efficient use as fuels.

- Fulfilled pollution abatement plans both for Water as well as Air meeting
the stringent standards of APPCB.

- Unblemished record of supply of huge quantities of paper to the various


Govt. Depts. including DGS & D and to its customers all over the country
without failure and well within the committed period.

- Consistency in the quality of the product irrespective of the market


conditions etc.

- Being an organization promoted by the local people and run mostly by the
local available talents, the industrial relations of the Mills are excellent and
cordial.

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- This is only the Mills in the country which has been in operation without
any stoppage whatsoever except for Natural Calamity of Floods during
1986.

- It may be of interest to know that there has been no Mill of this type in the
country, which has not changed its name.

MILESTONES

1. Delta Paper Mills was established in 1975 in Vendra village,


Palakoderu Mandal, West Godavari District in the Rice Bowl of
Andhra Pradesh, Palakoderu Nowduru Road at a Distance of 10 KM
from Bhimavaram to manufacture 9000 MT/Annum Writing &
Printing Paper with agricultural residues i.e., Paddy Straw to cater to
the needs of farmers.

2. Went to Commercial production in July 1978.

3. Its capacity has increased to 18000 MT/Annum by installing 2nd


Paper Machine and the relevant Plant & Machinery. The Mill has
started utilizing Bagasse also as Raw Material for improving Paper
Quality.

4. Delta Paper Mills is the first Company to utilize Natural Gas supplied
by oil and Natural Gas Commission in the entire South India.

5. The Company has provided employment to Rural Youth by providing


the required training.

30
6. In the year 1998, Dr. Gokaraju Gaga Raju, Promoter, Head of Laila
Group, Managing Partners of M/s. Chemiloids, Herbal Pharma
Extract unit and an eminent Industrialist in Andhra Pradesh, has taken
over the Management of the Company and turned the corner and
achieved its capacity utilization to an extent of 144%.

7. The Company has installed 3rd Paper Machine and required Plant &
Machinery and increased the capacity the capacity to 42000
MT/Annum and commissioned the same during December 2004.

8. For Development of Quality of Paper and Pollution abatement the


company has gone for Mill Development Programme by installing
Continuous Digester, Chemical Recovery Plant, and Power Plant etc.

9. The Mill Development has been successfully completed and the


Company is now capable of producing 51100MT/Annum of quality
Writing and Printing Papers.

PRODUCTS

Manufacturer of following Quality Writing and Printing Papers with


VIRGIN PULP - GSM ranges from 46 to 150 - Paper is being supplied both
in the form of Reels and Sheets.

1. MAPLITHO S.S.

2. MAPLITHO N.S.S.

31
3. OFFSET PRINTING.

4. CREAMWOVE

5. COLOURWOVE

6. CARTRIDGE

7. DUPLICATING

8. AZUREWOVE & LAID

9. NEWSPRINT

The unique feature of M/s Delta Paper Mills Limited is its diverse
and wide product ranges.

PRODUCT RANGE S:

With this wide product range, we meet the needs of nationalized Text
Books distributed by various State Governments like Andhra Pradesh,
Maharashtra, Gujarat, Kerala and Madhya Pradesh etc., and leading
publication houses apart from many others. The Company enjoys the
patronage of private market distributions and also having a brand name and

32
WRITING & PRINTING
GRADES :
MAPLITHO S.S
MAPLITHO N.S.S
image.
OFFSET PRINTING
PAPER USAGE DESCRIPTION :
CREAMWOVE PAPER
WHITE PRINTING 1. LABEL PRINTING
PAPER 2. NOTEBOOKS & TEXTBOOKS

AZURELAID PAPER 3. ENVELOPS


AZUREWOVE PAPER 4. PRINTING & PACKAGING

WHITE CARTRIDGE 5. COMPUTER STATIONERY


PAPER 6. ACCOUNT / LEDGER BOOKS

WHITE COVER PAPER 7. ANNUAL REPORTS / JOURNALS


DUPLICATING PAPER / NOVELS

NEWSPRINT GRADE

WELFARE

Delta Paper Mills Note Books Distribution free of cost to School Children.

Clean & Green Programme Implemented by Delta Paper Mills Ltd., Vendra.

Contact

Grams: DELTPAP

Phone
08816-248881 to 248884 & 248335 to 248337
Nos:

Fax(91): 08816-248885, 248208

33
elr_deltpap@sancharnet.in elr_deltmill@sancharnet.in

Board Members

S.No Name Designation


1. Sri G.Panduranga Raju Chief Executive
Vice President
2. Sri P.S.Chandrasekhara Varma
(Admn .& Comml.)
Chief Manage r(Mktg.
3. Sri R.R.K.Paramahamsa
& Purchase)
4. Sri T.D.V.Siva Prasad Manager (Admn.)
5. Sri P.Gopala Raju Manage r(Mktg.)
6. Sri K.V.S.Sitarama Rajukk D.Manager (Purchase)

34
THEORETICAL FRAME WORK

Marketing mix is the set of controllable marketing variables that


the firm blends to produce the response it wants in the target market.
Marketing mix consists of everything the firm can do to influence the
demand for its product. The many possibilities can be grouped into four
elements or variables known as four Ps, Product, Price, Place, and
Promotion

PRODUCT:--

A product is anything that can be offered to a market for


attention, acquisition, use or consumption and that might satisfy a want or
need; it includes physical objects, services, persons, places, organizations
and ideas.

Product planners need to think about the product on three levels.


The most basic level is the core product, which addresses the question; what
is the customer really buying? The core product stands at the center of the
total product. It consists of the problem solving services or core benefits that
consumers seek when they buy a product. Women buying lipstick buys more
than lip color. Charles Revlon said:- In the factory, we make cosmetics; in
the store, we sell hope.

35
Thus, when designing products, marketers must first define the
core benefits that the product will provide to consumers, i.e., the durable
goods, non-durable goods, and services.

Product can be classified into three groups according to their


durability or tangibility. Non-durable goods are consumer goods that are
normally consumer in one or a few uses, such as beer, soap, and salt.
Durable goods are consumer goods that are used over an extended period of
time and that normally survive many uses. Examples include refrigerators,
automobiles, and furniture. Service are activities, benefits or satisfactions
that are offered for sale that are essentially intangible and do not result in the
ownership of anything.

New Product Development Strategy:--

Given the rapid changes in tastes, technology and competition a


company cannot rely solely on its existing products. A customer wants the
new and improved products that come about because of competition. Every
company needs a new product development program. According to one
estimate half of the profits of all U.S. companies come from products that
did not exist ten years ago.

A company can obtain new products in two ways. One is through


acquisition by buying a company, patent, or a license to product someone
elses product. The other is through new product development in the
companys own research and development department. As the costs of

36
developing and introducing major new products have climbed, many large
companies have decided to acquire existing brands rather than to create new
ones. Other firms have saved money by copying competitors brands or buy
reviving old brands.

PRICE:--

Simply defined, price is the amount of money charged for a


product or service. More broadly, price is the sum of the values that
consumers exchange for the benefits of having or using the product or
service.

A companys pricing designs are affected by both external and


internal environmental factors. Internal factors include the companys
marketing objectives, marketing mix strategies, costs, and organizations.
External factors include the nature of the market and demand, competition
and other environmental elements.

Price is the only tool of marketing mix that the company uses to
get returns. Price decisions must be co-ordinate with product design,
distribution and promotion decisions to form a consistent and effective
marketing program. Decisions made regarding or other marketing mix
variables may affect pricing decisions. For example, producers using many
resellers who are expected to support and promote their products may have
to build larger reseller margins into their prices. The decision to position the
product on high quality will mean that the reseller must charge a higher price
to cover higher costs.

The price the company charges will be somewhere between one


that is too low to produce a profit and one that is too high to produce any
37
demand. Product costs set a floor to the price; consumer perceptions of the
products value set the selling. The company must consider competitors
prices and other external and internal factors to find the best prices between
these two extremes.

Companies set prices by selecting a general piecing approach that


includes one or more of these three sets of factors. The following approaches
may be examined. The cost based approach (cost-plus piecing break even
analysis target profit pricing); the buyer-based approach (perceived-value
piecing); and the competition-based approach (going-rate and sealed-bid
pricing).

Pricing strategies are changed as the product passes through


different stages in its life cycle. The introductory stage is especially
challenging. We can distinguish between pricing an innovative product that
is patent protected and pricing a product that imitates existing products.

Companies bringing out an innovative patent-protected product


can choose between two strategies; market-skimming pricing and market-
penetration pricing.

Many companies that invent new products initially set high


prices to skim revenues layer by layer from the market. Polaroid is a prime
user of this strategy, called marketing skimming pricing. On its original
instant camera, for example, Polaroid charged that highest price so that it
could give the benefits of its new product over competing products. The
company price that made is just worthwhile for some segments of the market
to adopt the new camera. After an initial sale slow down, it then lowered the
38
price to draw in the next price sensitive layer of customers. Polaroid also
used the same approach with its spectra camera. The spectrum was
introduced at about twice price of Polaroids previous entry in the field.
After about a year, Polaroid began bringing out even simpler, lower priced
versions to draw in new segments. In this way, Polaroid skimmed a
maximum amount of revenue from various segments of the market.

PLACE:--

Most products use middlemen to bring their products to


market. They try to forge a distribution channel a set of interdependent
organizations involved in the process of making a product of service
available for use of consumption by the consumer or industrial user.

Distribution channels can be described by a number of channel


levels involved. Each layer of middle men that performs same work in
bringing the product and its ownership close to the final buyer is a channel
level. Because the producer and the final consumer both perform some work,
they are part of every channel. We use a number of intermediary levels to
indicate the length of channel.

Channels 1, called a direct-marketing channel, have no


intermediary levels. It consists of a manufacturer selling directly to
consumers. For example, both Avon and world book encyclopedia sell their

39
products door to door; L.L.Bean sells clothing direct through mail order and
by telephone; and signer sells its sewing machines through its own stores.

Channels 2 contain one middle man level. In consumer markets,


this level means typically a retailer. For example, large retailer such as wall-
mart and sears sell televisions, cameras, tires, furniture, major appliances
and many other products they buy directly from manufacturers.

Channel 3, contains two middle man levels. In consumer


markets, these levels are typically a wholesaler and retailer. This channel is
often is used by small manufacturers of food, drugs, hardware and other
products.

Channel 4, contains three middle men levels. In the meat packing


industry, for example, jobbers usually come between wholesalers and
retailers. The jobber buys from wholesalers and sells to retailers who
generally are not served by larger wholesalers.

Distribution channels with even more levels are found sometimes


but less often from the producers point of view, a great number channel
complexity.

40
The concept of distribution channels is not limited to the
distribution of physical goods. Producers of services and ideas also face the
problem of making their output available to target population. They develop
health delivery systems. They must figure out agencies and locations for
reaching a widely spread population.

PROMOTION:--

Modern marketing calls for more than just developing and good
product, pricing it attractively, and making it available to target customers.
Companies also must communicate with their customers, and what they
communicate should not be left to chance.

To communicate well, companies often hire advertising agencies


to develop effective ads, sales-promotion specialist to design sales incentive
programs, direct-marketing specialists to develop databases and interact with
customers and prospects by mail and telephone and public relations firms to
develop corporate images. They train their sales people how to be friendly,
helpful and persuasive. For money companies, the question is not whether to
communicate, but how much to spend and in what ways.

A modern company manages a complex marketing


communication system. The company communicates with its middle men,
consumers and various publics. Its middle men communicate with their
consumers and publics. Consumers have word-of mouth communication
with each other and with other publics. Meanwhile, each group provides
feed back to every other group.

A companys total marketing communications program calles as


promotion mix consists of the specific blend of advertising, personal selling,
41
sales promotion and public relations tools that the company uses to pursue
its advertising and marketing objectives. Definition of the four major
promotions tools follows.

Advertising:

Any paid from of non-personal presentation and promotion of


ideas, goods or services by an identified sponsor.

Personal selling:

Oral presentation in conservation with one more prospective


purchases of the purpose of making sales.

Sales promotion:

Short-term incentives encourage the purchases or sale of a


product or service.

Public relations:

Building good relations with the companys various publics by


obtaining favorable publicity, building up a good corporate image, and
handling or heading off unfavorable humorous, stories and events.

Once the target audience has been defined, the marketing


communicator must decide what response is sought. Of course, in most case,
the final response is purchase. But purchase is the result of a long process of
consumer decision making. The marketing communicator needs to know
where the target audience now stands and to what state it needs to be moved.

42
The target audience may be in any of six buyer-readiness states,
the states consumers normally pass through. Go on their way to making a
purchase. These states include awareness, knowledge, liking preference,
conviction or purchase.

The messages impact on the audience also is affected by how


the audience views the sender messages delivered by highly credible sources
are more persuasive. For example, pharmaceutical companies want doctors
to tell about their products benefits because doctor ware very credible
figures. Many food companies now are promoting to doctors, dentists and
other health-care providers to motivate these professionals to recommend
their products to patients.

43
MARKETING MIX WITH REFERENCE TO

DELTA PAPER MILLS LIMITED

The marketing program consists of numerous decisions on the aspect


of marketing tools to use. The marketing aspect is the set of marketing tools
the firm uses to pursue its marketing objectives in the target market.
McCarthy classified these tools into four broad groups that he called the four
Ps of marketing aspect decision must be made for influencing the trade
channels as well as the final consumers.

Marketing aspects refers to the amount and kinds of marketing


variables, the firm is using at the particular time. Under marketing aspects,
we include mainly the strategies connected with product aspects, pricing,
promotion and market identification and distribution aspects. The idea of
aspects of marketing functions was involved by Prof. NEILOH
BORDON of the Harvard business school according to him, The
marketing aspects refers to the apportionment of the efforts, which on the
basis of the market force will best achieve the objectives of an enterprise at a
given time. Thus marketing aspects is a plan designed to analyze the
marketing problems.

44
The (four) 4 Ps of Marketing Aspects

Marketing Mix

Product Price Place Promotion


Product Variety List Price Channels Sales
Quality Discounts Coverage Promotion
Design Location Advertising
Allowances
Features Inventory Sales force
Payment Period
Brand name Transport Public relations
Packaging Credit Items Direct Marketing
Sizes
Services
Warranties
Return

45
PRODUCT

A product is anything that can be offered to a market for attention,


acquisition, use of consumption that might satisfy a want or need. A product
is anything that can be offered to a market to satisfy a want or need.
Products that are marketed include physical goods, services, experiences,
events, persons, places, promotions, organizations, information and ideas.

The marketer needs to think through five levels of the product.


The most fundamental level is the core benefits the fundamental service or
benefit that the customer is really buying. At the second level, the marketer
prepares an expected product, a set of attributes and conditions buyers
normally expect when they purchase this product. At the fourth level, the
marketer prepares an augmented product that exceeds customers
expectations. Todays competitions essentially hakes place at the product
augmentation level. At the fifth level stands the potential product, which
encompasses all the possible augmentations and transformations the product
or offering might undergo in the future

Product Classification:--

46
Marketers have traditionally classified product on the
basis of characteristics, durability, tangibility and use (consumer or
industrial). Each product type has an appropriate marketing aspects strategy.

1. Non-durable goods are tangible goods normally consumed in one or a


few uses, like beer and soap. l because there goods are consumed
quickly and purchased frequently, the appropriate strategy is to make
the available in many locations, charge only a small mark up, and
advertise heavily to include trail and build preference.
2. Durable goods are tangible goods that normally survive many uses:
machine. Durable product normally require more personal seling and
service, command a higher margin, and require more seller
guarantees.
3. Services are intangible, inseparable, variable and perishable products:
As a result, they normally require more quality control, supplier
credibility, and adaptability.

Consumer Goods Classification:

The vast array of goods consumers buy can be classified on the


basis of shopping habits. We can distinguish among convenience, specialty,
and unsought goods.

a. Convenience goods are those the customer usually purchases


frequently, immediately, and with a minimum of effort.
b. Shopping goods are goods that the customer, in the process of
selection and purchase, characteristically compares on such bases as
suitability, quality, price and style. Homogeneous shopping goods are

47
similar in quality but different enough in price to justify shopping
comparisons.
c. Specialty goods have unique characteristics or brand identification for
which a sufficient number of buyers is willing to make a special
purchasing effort.
d. Unsought goods are those the consumer does not know about or does
not normally think of buying, like smoke detectors.

Industrial Goods Classification:--

Individual goods can be classified in terms of how they enter the


production process and their relative cost lines. We can distinguish three
groups of industrial goods: Materials and parts, Capital items, and supplies
and business services.

1. Materials and parts are goods that enter the manufacturers product
completely. They fall into two classes:
a. Farm products are supplied by many producers, who turn them
over to marketing. Intermediaries, who provide assembly,
grading, storage, transportation, and selling service.
b. Natural products are limited in supply. They usually have great
bulk and low unit v alue and must be moved from producer to
user.
2. Capital items are long-lasting goods that facilitate developing or
managing the finished product. They include two groups:

48
a. Installations and equipment. Installations are major purchases.
They are usually bought directly from the producer. The
producers sales force includes technical personnel.
b. Equipment comprises portable factory equipment and tools and
office equipment. These types of equipment do not become part
of a finished product.
3. Suppliers and businesses services are short lasting goods and services
that facilitate developing or managing the finishing product.
It is said that nothing happens in our economy unless there is a
sale of purchase of a product. Product is the soul of all our marketing
activities. Without a product, marketing cannot be imagined product is a tool
in the hands of the management. Through which it give life to al marketing
programs. So the main responsibility of the management should be to know
its product.

Well someone has said, If the first commandment in the marketing


knows their customer, the second knows their product.

A product aspect also called Product assortment is the set of


all products and items that a particular seller offers for sale. A companys
product aspect has a certain width, length, depth, and consistency.

The width of product aspects refers to how many different product


lines the company carries.
The length of product aspects refers to the total number of items in
the aspects. This is obtained by dividing the total length or an
average product length.

49
The width of a product aspect refers to how many. Variants are
offered of each product in the line. The average depth of P & Gs
product aspects can be calculated by averaging the number of
variants within the brand groups.
The consistency of the product aspect refers to0 how closely related
the various product lines are in end use, production requirements,
distribution channels, or some other way.

These four product-aspects dimensions permit the company to


expand its business in four ways. It can add new product lines, thus
widening its product aspects. It can lengthen each product line. The can add
more product variants to each product and deepen its product aspect. Finally,
a company can purchase more product-line consistency.

Product in delta paper mills limited:

The product mix of Delta Paper Mills Limited consists of seven


varieties of papers.

1. Cream wove
2. Azure wove
3. Azure laid
4. Duplicating
5. Color wove
6. Sack Kraft
7. Delta Hasti

50
Cream wove:

It is used for printing Text books and Note books.

Azure wove:

It is used for Accounting books, Ledger books and Dairy.

Azure Laid:

This type of paper is used for making charts and cards etc.

Duplicating:

It is used for Fax roles and Telephone bills.

Color wove:

It is used for Decoration works, Color papers, Vouchers etc.

Sack Kraft:

It is used for packing bundles, packaging and covers manufacturing.

Delta hasti:

This is the brand name into of note books.

To classify each product type into product items, there are two
important criterions. They are GSM or Gram mage dimensions and GSM
attribute grams per square meter.

Therefore, a product item is said to have the following orders:

1. White Printing - 60 GSM


2. Duplicating - 72 GSM

51
3. Azure wove - 46 GSM
4. Cream wove - 60 GSM
5. Azure wove - 54 GSM
6. Cream wove - 60 GSM

GSM must be in between 47 to 130 because if GSM gets lower it


becomes difficult to produce quality paper without specks and holes. And
also heavy wastage would occur in case of lower GSM paper.

Therefore, Delta Paper Mills usually offers to sell Cream wove paper
above 50 GSM. Duplicating paper was above 60 GSM. Azure wove paper
above 50 GSM and cartridge above 60 GSM.

Depending upon the order, the above varieties of paper are


manufactured and supply in different sizes to the dealers.

The annual installed capacity of Delta Paper Mills was 9000 tons and now
the product capacity was increased to 24000 tons per annum.

The chemicals, which are used in the plant, are,

1. Caustic Soda
2. Sodium silicate
3. De- inking
4. Calcium hypo chloride
5. Alum (Aluminum sulphate)
6. Rosine.

52
The plant required 700MQ of water for 11 months in a year. Water
canal is closed for one month in a year for maintenance. APSEB has agreed
to supply continuous power from grid to the demand would be in the order
of 2500KVA after the second phase.

PRICE

Price is the second element of the marketing aspects. That produces


revenue. Price remains one of important elements determining market share
and profitability.

Companies do their pricing in a variety of ways. In small


companies, prices are often set by the boss. In larger companies, Pricing is
handled by division and product line managers. Even, top management
sets general pricing objectives and policies and often approves the prices
proposed by lower levels of management.

A firm must set a price for the first time when it develops a new
product, when it introduces its regular product into a new distribution
channel or geographical area, and when it enters bids on new contract work.
The firm must decide where to position its product on quality and price. The
company must set its price in relation to the value delivered and perceived
by the customer. If the price is higher than the value received, the company
will miss potential profits, if the price is lower than the value received, the
company will fail to harvest potential profits.

The firm has to consider many factors in setting its pricing policy.
We will describe a six-step procedure.

1. Selecting the pricing objective.

53
2. Determining demand.
3. Estimating costs.
4. Analyzing competitors costs, prices, and offers.
5. Selecting a pricing method
6. Selecting the final price

Setting pricing policy

54
1. Selecting the pricing objectives.

2. Determining demand.

3. Estimating cost.

4. Analyzing competitors costs, prices, and offers.

5. Selecting a pricing method.

6. Selecting the final price.

1. Selecting the pricing objectives:

55
The company first decides where it wants to position its market
offering. The clearer a firms objectives, the easier it is to set price. A
company can pursue any of five major objectives through pricing.

a. Survival
b. Max. current profit
c. Max market share
d. Max. market skimming
e. Product quality leadership

Companies pursue survival, as their major objective if they are


plagued with over capacity, intense competition, or changing consumer
wants. Many companies try to set a price that will maximize current profits.
The firm has knowledge of its demand and cost functions, in reality, there
are difficult to estimate.

2. Determining demand:

Each price will lead to different level of demand and therefore have a
different impact on a companys marketing objectives. The relation between
alternative prices and the resulting current demand is captured in a demand
curve. The product is assumed to have more quality, prestige, or
exclusiveness.

3. Estimating costs:
Demand sets a ceiling on the price the company can charge off its
product. The company wants to charge a price that covers its cost of
56
producing, distributing, and selling the product, including a fair return for its
effort and risk. A companys costs take two forms, fixed and variable. Target
costing costs change with production scale and experience. They consider
ways to reengineer components, eliminate functions, and bring down
supplier costs. The objective is to bring the final cost projections into the
target cost range.

4. Analyzing competitors costs, prices, and offers:


The range of possible prices determined by market demand and
company costs, the firm must take the competitors costs, prices, and possible
price reactions into account. The firm should first consider the nearest
competitors price. The customer should be evaluated and added to the
competitors price. That competitor can change their prices in the reaction to
the price set by the firm.

5. Selecting a pricing method:

The customers demand schedule, the cost function, and


competitors prices the company is how already to select a price.
Competitors prices and the price of substitutes provide an orienting point.
Price setting methods make up pricing, target return pricing, perceived
value pricing, value pricing, going rate pricing, auction type pricing
and group pricing.

The most elementary pricing method is to add a standard mark upto


the products cost.

57
In target return pricing the firm determines the price that would
yield its target rate of return on investment.
An increasing number of companies base their price on the customers
perceived value.
In going rate pricing, the firm bases its piece its price its price
largely on competitors prices.
Group pricing the internet is facilitating method where by consumers
and business can join groups to buy at a lower price.

6. Selecting the final price:

Pricing methods narrow the range from which the company must
select its final price. In selecting that price, the company must consider
additional factors, including psychological pricing, gain and risk sharing
pricing, the influence of other marketing aspects elements on price, company
pricing policies, and the impact of price on other parties

Pricing in delta paper mills limited:

The company uses cost plus pricing method for its different
varieties of paper. Every year the company releases the price list which
contains the price quotations of different varieties of paper; the price is
generally fixed for sheets and reels.

In Delta Paper Mills Ltd., the pricing method under cost plus method
is as follows:

58
Price = Manufacturing cost + Administration Cost + Marketing
expenses + Profit margin.

The party will pay the percentage of sale tax and excise duty.

PRICE STRUCTURE:

Basic Price : _____________________

(Manufacturing + Administrative + Marketing Costs)

Add: Profit Margin : _____________________

Less: Trade Discount : _____________________

Add: C.S.T. & Excise Duty : _____________________

Add: Freight : _____________________

Total : _____________________

Terms and conditions:

The prices mentioned above are exclusive of the following:

1. (a) Excise Duty, Chess and Educational Chess are as applicable at the
time of dispatch of the materials.
(b) AP VAT: In the state of AP, VAT TAX @ 4% will be charged and
other rules will apply from the time to time as applicable

2. Insurance Rs. 600/- per MT will be charged extra.


3. Trade Discount @ Rs. 500/- per MT will be allowed to the dealers.

59
Cash Discount @ Rs. 500/- per Mt will be allowed to the dealers. If
the payments is made before dispatch of the materials.

4. Prices are subject to revision without any prior notice and invoices are
prepared as per the ruling prices on the date of dispatch.
5. Order given should be matched to Deckle Sizes -
Machine I 260 TO 265 cms

Machine II 300 TO 205 cms

Machine III 285 TO 290 cms

6. Any change in the government levies, taxes and duties, the same will
be collected at actual.
7. For Reels 40 cms and less than 40 cms size, extra charge will be made
at Rs. 300/- per MT Over and above the sheet prices.
8. All Disputes Are Subject To Jurisdiction Of Courts At Bhimavaram,
W.G. Dist., and A.P. State Only.
9. This price list supersedes all our earlier price lists.

PLACE

Distribution channels in delta paper mills:

When product is finally ready for the market, it has to be determined


what method and routes should be used for bringing the product into the
market i.e., to ultimate users. This process involves establishing distribution
strategies, including channels of distribution and providing for physical
hadling and distribution. Distribution is concerned with various activities,
such as the movement and storage of goods, the legal, promotional and

60
financial activities involved in the transfer of ownership from the producer
to the consumer or use. A channel of distribution for a product is the route
taken by the title to gods as they move from the producers to ultimate
consumer or industrial user.

According to the American Marketing Association on A channel of


distribution, or marketing channel is the structure of intra company
organization units and extra. Company agents and dealers, wholesale and
retailers, through which a commodity, product or service is marketed.

As discussed earlier the distribution is very essential for the smooth


flow of goods from the producer to the ultimate. Users, DPM also has a very
good distribution network. The characteristics of a god channel are based the
following three factors.

1. Number of Intermediates
2. Communication
3. Stock Dispatch
1. Number of Intermediates:
The number of intermediates should be as less as possible. The more
number of intermediates should be the more than the competitions.

2. Communication:
The communication should be effective; the message from the
customers should be conveyed immediately by the intermediaries so that
production can be planned.

3. Stock Dispatch:

61
The company should see that stocks are dispatched within the
minimum possible time so that the customers get the product in time to meet
the demand.

Channels of delta paper mills limited:

The channel selection procedure depends upon the type of consumer,


price of commodity, availability of middlemen etc.

Delta Paper Mills Ltd was find three types of channels of distribution
for their product. The market of Delta Paper Mills is spread in the states of
Karnataka, Kerala, Tamilnadu, Andhra Pradesh, Orissa, and also some
northern states like Madhya Pradesh, Maharashtra and Gujarat. There are
also agents for Delta Paper Mills Ltd in some parts of the country. There are
3 types of channels.

1. Direct Channel:
In this type of channel, the paper mill to the consumer directly
supplies the paper. This type of channel is known as Zero level channel.

2. Second type of channel:


In the second type of distribution channel, there are number of
middlemen for the product before it reached to ultimate consumers. In this
type of channel, first they are dealers, after the dealers, and then come the
ultimate consumer.
3. Third type of Channel:
In the third type, this channel is short compare to the above
channels. This channel consists of agents, retailers and consumers. Hence
there are two intermediaries took place in the course of reaching final
product to the ultimate customer from the producer.
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Factors affecting the channels of distribution:

As described above, there are three channels of distribution in Delta


Paper Mills Limited from these three channels. The marketing executive
must screen those that may be appropriate for distribution. The factors
affecting the choice of channels are discussed under five hands.

Market consideration
Product consideration
Company consideration
Middlemen consideration
Consumer consideration.
Sales Practices of Delta Paper Mills Limited

Delta Paper Mills Limited is making sales of paper in reels and sheets.
It is making sales to:

Direct sales
Dealers
Consignment
Regional office

Direct Sales:

Under the direct sales, the marketing department sells the paper
directly to the end customer at the company premises Vendra.

Dealers:

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The company making sales other than government sales only to those
persons who agreed upon as dealers by Delta Paper Mills Limited has strong
network of 28 dealers throughout the country. The dealer has to deposit
some amount with the company for which the company is paying 9%
interest. A dealer is entitled for quota fixed by the company for a particular
period. Dealers conference are held by the company periodically to
consolidate their problems and to take necessary steps to improve sales.

Consignment:

The company is also making sales on consignment basis. Here the


ownership if not transferred to the consignee. The consignee gets orders in
his area, sends to the company, and is the fulfillment of those orders. For
these services, the consignee receives commission.

Regional Officers:

The company is has its regional officers at Bangalore, Madras,


Hyderabad and Cochin. These officers get orders from various parties and
they send them to the company. They fulfill the orders, recover the dues
from the customers, and improve sales.

PROMOTION

The co ordinate self initiated efforts establish channels of


information and persuasion to facilitate or faster the sale of goods or
services, or the acceptances of ideas of points of view.

All the other variables of marketing mix namely product, price,


place (distribution) are marketing activities that are mainly performed within
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the company or between the company and its marketing partners, promotion
unlike the other marketing mix variables, has much to do with customers,
specially of telling the customer about the product to the potential to buy the
product.

Personal selling and sales promotion, public relations, and


publicity which makes up the promotion mix are related to product, price
and distribution which in terms are pooled into make the marketing mix.
Advertising and personal selling are related to product, sales promotion to
price and public relations and publicity to distribution. Promotion could be
summered up as the design and management of marketing of marketing
subsystem for the purpose of informing and persuading present and potential
consumers.

Promotional Mix:

Promotional mix consists of advertising, personal selling and sales


promotion. Four factors should be taken into account while declining the
promotional mix. They are,

Amount of funds availability


The nature of the market
The nature of the product
Stage of the product life cycle
In the Delta Paper Mills Limited, practically there is no
advertising at all. The advertising is gives in souvenirs occasionally.

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Advertisements were given in the news paper during the chief minister visit
to the factory in 1986.

In Delta Paper Mills Limited, there is more of personal selling. The


people from the marketing department go to the paper dealers, government
offices etc. and persuade them to purchase their requirements of paper from
Delta Paper Mills Limited. The Delta Paper Mills Limited also answers
when tenders are called by various Government officers for paper. An officer
from the Delta Paper Mills Limited is generally

DATA ANALYSIS & INTERPRETATION

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1. While selecting the companies, which factors influence you most?

No., of Dealers,
INFLUENCING FACTORS Wholesalers, Percentage%
Printers

Financial strength 5 13

Quality 15 37

Business Experience 3 8

Growth& Profitability 7 18

Reputation 10 24

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INFLUENCING FACTORS

Reputation; 24%Financial strength; 13%

Growth& Profitability; 18% Quality; 37%

Business Experience; 8%

INTERPRETATION:

From the above table, it is clear that for nearly 37% of the Dealers.
Wholesalers, Printers are influencing quality. Reputation is the next most
influencing for 24 %.

Delta Paper mills Ltd is known for its quality of paper and has gained
customer satisfaction Quality is the factor, which made the products of the
company different from others

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2. Why the product mix of DPM is changing monthly / yearly?

PRODUCT MIX Priority Percentage %

Market Conditions 3 30

Quality Assurance 2 20

Competitors 1 10

Orders Received 4 40

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PRODUCT MIX

Market Conditions; 30%


Orders Received; 40%

Quality Assurance; 20%


Competitors; 10%

INTERPRETATION:

From the above table it is clear that Product Mix of DPM is changing
monthly / yearly because the top most priority is given to orders received
40% follows Market conditions 30%^ Quality Assurance 20% and the least
priority is given Competitors which is 10%.

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3. What kind of support would you demand from the company?

Demand Priority Percentage %

Transport 3 30

Special Allowance 1 10

Financial Support 2 20

Promotional Support 4 40

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Demand

Transport; 30%
Promotional Support; 40%

Special Allowance; 10%


Financial Support; 20%

INTERPRETATION:

From the above table it is clear that Demand from the Company of
DPM is changing monthly yearly because the top most priority is given to
transport 30% follows Financial Support 20% Financial Support and the
least priority is given Special Allowance 10%

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4. On what basis the new product development done by the DPM'

NEW PRODUCT Priority Percentage %


DEVELOPMENT

Market Demand 30 30

Improved Technology 20 20

Competitors 30 30

Others 20 20

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NEW PRODUCT DEVELOPMENT

Others; 20%
Market Demand; 30%

Competitors; 30%
Improved Technology; 20%

INTERPRETATION:

From the above table it reveals that DPM develops new products and
the top most priority is given to the market demand and competitors a 30%,
follows the next priority is given to the improved technology as 20%, others
20%.

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5. Which type of customers available for the DPM products?

TYPES OF No. of Dealers, Percentage%


CUSTOMER Wholesalers, Printing

Note Book 11 22
Manufacturer

Magazine 4 8

Xerox centers 17 34

Printers 10 20

Others 8 16

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TYPES OF CUSTOMER

Printers; 16% Note Book; 22%

Xerox centers; 20% Manufacturer; 8%

Magazine; 34%

INTERPRETATION:

The table reveals that 34% of the customers are Xerox


communications, 22% are Note Book Manufactures, 20% are Printers and
16%o are other customers.

As the company is producing different types of paper, suitable for


various purposes, the customers also vary according to their need. The
company is not dealing with customers.

Almost all the Dealers, Wholesalers are selling to the Note Book
Manufactures, Xerox centers and printers.

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6. On what basis incentives were given to your customers / dealers?

Incentives Customers/Dealers Percentage%

Financial Strength 15 30

Year of Service 7 14

Growth & Profitability 20 40

Others 8 16

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INCENTIVES

Others; 16%
Financial Strength; 30%

Growth & Profitability; 40% Year of Service; 14%

INTERPRETATION:

From the above table it reveals that the company providing

incentives to their dealers/customers through Financial Strength 30%, Year

of service by 14%, Growth & Profitability 40% and others 16%

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7. What are the following services that you are currently receiving
you're your supplier / company?

a) CREDIT PERIOD

Rate No. of Dealers, Percentage%


Wholesalers, Printing

Minimum 7 35

Average 13 65

Maximum 0 0

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CREDIT PERIOD

Minimum; 35%

Average; 65%

INTERPRETATION:

At Present, Major portion of the dealers are satisfied with the credit
period given by the company. Only 35% of dealers are expecting to increase
the credit period from the company in order to promote the credit facilities to
their respective customers.

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b) MARGIN

Rate No. of Dealers, Percentage%


Wholesalers, Printing

Low 5 25

Average 12 60

High 3 15

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MARGIN

High; 15%
Low; 25%

Average; 60%

INTERPRETATION:

From the above table we can observed that the margin was maintained by
the DPM Ltd was unsatisfied by the 25%, satisfied by the 60% and highly
satisfied by the 15%

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C) DELIVERY PERIOD

Rate No. of Dealers, Percentage%


Wholesalers,
Printing

Low 7 35

Average 10 50

Prompt 3 15

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DELIVERY PERIOD

Prompt; 15%
Low; 35%

Average; 50%

INTERPRETATION:

35% of the dealers, wholesalers are stated that delivery of the


products by the company is low. The other 50% of dealers, wholesalers are
having given that delivery by the company is average. For remaining 15%
the delivery of products is prompt. The reasons for the slow delivery may be
due to lack of co-ordination between the mills and the marketing section at
Secunderabad

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8. What is the opinion on DPM Paper Products?

Opinion No. of Dealers, Percentage%


Wholesalers,
Printing

Satisfaction 15 75

Better 4 20

Unsatisfied 1 5

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Opinion

Unsatisfied; 5%
Better; 20%

Satisfaction; 75%

INTERPRETATION:

The Delta Paper Mills Ltd is a well noted in the market. So that most
of the dealers, wholesalers and printers are generally satisfied with their
products.75% of the dealers, wholesalers and printers are satisfied 20% of
the dealers, wholesalers and printers are stated that the products could be
better. Only 5% of the dealers are unsatisfied with products.

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FINDINGS

1. It is found that Delta Paper Mills have a lower brand awareness image.
Their product merchandise is only through their appointed employees.

2. It is observed that Delta Paper Mills are producing only cultural variety of
paper.

3. It is found that Delta Paper Mills using only pricing method.

4. It is observed that the present promotional techniques adopted by the


company are not sufficient, they are not giving more incentives to the
dealers.

5. It is found that Delta Paper Mills Ltd was depended only on the appointed
dealer network.

6. It is observed that there is no Research & Development activity.

7. It is found that there is no direct customer for Delta Paper Mills Ltd.

8. It is observed that there is only one channel distribution.

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SUGGESTIONS

1. Promotional activities one necessary to stimulate the demand for the


production personal discussions are to be mode with the dealers &
retailers for the improvement of sales.

2. I advise the company that to produce consumer goods note books, ledger
book etc. along with the industrial good to gain more profits.

3. I support the company that to adopt other pricing strategies like demand
based pricing, going-rate pricing along with the cost plus pricing strategy.

4. Special incentives should be given to the dealers who achieved maximum


extent of sales by way of a words or rewards. The awards & reward will
boost the morale of the dealers & they shine for higher extent of sales.

5. I suggest the company; special marketing package is required to capture


the present competitive market.

6. It is advised to the company that to adopt the R & D activities to get more
advantage like best utilization of raw materials & labor etc.

7. The company should undertake advertising campaign for their note book
which results in higher sales.

8. I suggest the company to maintain co-ordination between different


channels of distribution to increase the sales revenue.

88
QUESTIONNAIRE

I am carrying out a survey on "Marketing Mix of Delta Paper Mills


Ltd" as a part of my Dissertation work. Kindly assist me in filing this
questionnaire, giving your sincere opinions regarding the following
questions.

Question -1

While selecting the companies, which factors influence you most?

1. Financial Strength 2. Quality

3. Business Experience 4. Growth and profitability

5. Reputation

Question -2

Why the product mix of DPM is changing monthly / yearly?

1. Market Conditions 2. Quality Assurance

3. Competitors 4. Orders Received

Question -3

What kind of support would you demand from the company?

1. Transport 2. Special Allowance

3. Financial Support 4. Promotional Support

Question -4

On what basis the new product development done by the DPM'

1. Market Demand 2. Improved Technology

3. Competitors 4. Others

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Question -5

Which type of consumers available for the DPM products?

1. Note Book Manufactures 2. Magazine Publishers

3. Xerox Centers 4. Printers

5. Others

Question- 6

On what basis incentives were given to your customers / dealers?

1. Financial Strength 2. Years of Service

3. Growth & Profitability 4. Others

Question- 7

That the following services that you are currently receiving you're your
supplier / company?

a) CREDITTERIOD

1. Minimum 2. Average 3. Maximum

b) MARGIN

1. Low 2. Average 3. High

C) DELIVERY

1. Slow 2. Average 3. Prompt

Question- 8

What is the opinion on DPM Paper Products?

1. Satisfaction 2. Better 3. Unsatisfied

90
BIBLIOGRAPHY

BOOKS

1. Marketing Management - Philip Kotler.

2. Marketing Management - Keely and Lazor.

3. Fundamentals of Marketing - W.J. Stanon

COMPANY REPORT

Annual Reports of Delta Paper Mills Limited


Management information Report of Delta Paper Mills Limited.

Website:

www. Google.com

www.deltapapermills.com

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