kitex

CHAPTER-1

INTRODUCTION

At the dawn of the new millennium Kitex entered in to the baggage and

luggage industry under the brand name ‘SCOOBEE DAY’ and ‘TRAVELL DAY’

respectively. Kitex have a wide variety of travel bags, trolley bags, business bags,

laptop bags and back bags under the name of travel day. The factory is engaged in

continuous production of bags and a quality of 14 lakhs of bags came out the last year

the fabrics for the bags are mainly imported from china Taiwan etc. sample for the

design may be brought from outside the country to produce the best quality design

that can be matched with other international brands new designs for the bags are

sketched using computers by various experts in the department the production is

carried out on a continuous basis.

After the final stitching of bag each unit is taken separately for strict quality

check. Besides that random checking is also made by quality control section imported

and domestic machineries are used in the factory which can function continuously

without any break computer programmed machines are also used in the plant which

can perform multiple task the factory runs on one shift from 8.30am-6 pm at the time

of season the work start from 8 a m and is continues up to 9 pm in such cases

overtime allowance is given to the workers

DISTRIBUTION CHANNEL

A distribution channels set of interdependent organizations that help make a

product available for use or consumption by the consumer or business user .channel

intermediaries are firm or individuals such as wholesalers,agents,brokers or retailers

who help move a product from the producer to the consumer or business user.

A company’s channel decision directly affects every other marketing decision

distribution can some time give a product a distant position in the market. The choice

of retailers and other intermediaries is strongly tied to the product itself.

Manufacturers select mass merchandisers to sell mid-price range products while they

distribute top of the line products through high-end department and specialty stores

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1.1 INDUSTRY PROFILE

1.1.1 INDIAN TEXTILE INDUSTRY

The Indian textile industry, which has a tradition of over 5000 years, is on the

verge of creating history. If the industrialization by its colonial masters reduced the

status of Indian textiles as glorified converters, the rule based trading symbolized by

the World Trade Organization is expected to propel Indian textiles as global clothier,

secondly in China. The journey from being a colonial master’s converter to becoming

a nerve center for outsourcing essentially captures the survival instincts of Indian

textiles. Not a day passes without Indian textiles being featured in International

forums and global magazines. Entrepreneurs and corporate houses that have made

necessary adjustments to meet global challenge could reap windfall gains, while the

others could marginalized. Nevertheless, it should be admitted that adoption of world-

class technologies, economies of scale and global manufacturing practices are very

vital.

India’s textile industry is crucial to the national economy. Besides, it plays an

important role in the country’s macroeconomic level. It contributes about 3 percent to

the gross domestic product of our nation, accounts for 14 percent of industrial

production, generates 8 percent of the central excise revenue and contributes around

24 percent of total exports. The industry is second largest employment provider after

the agriculture sector employing over 38 million people directly and another 50

million indirectly.

The structure of Indian Textile industry is a bit complex. On one hand it is

marked by the presence of large scale organized players while on the other hand are

the numerous small scale independent units. The growth of the small scale industries

was backed by the middleman in the textile fabric trade. Traditionally the, textiles

have had a long chain of intermediaries like wholesalers, distributors, agents etc. these

intermediaries were making arms of the mill and played an important role in

maintaining contact with the final customer that is the retailer. The intermediaries in

order to sustain their business resorted to buying from independent units also. The

textile industry is characterized by the combinations of cotton farm and ginning

sector, synthetic and manmade fiber industry, spinning sector, weaving sector and

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composite mills. The presence of a large number of players in each sector, none of

whom is large enough to stimulate demand, has led to a situation where in the

industry as a whole cannot compete effectively or counter any attack of the competing

rivals of the industry.

In the earlier period we can see that the US and European economies restricted

imports of textile products from the different countries through Multi-Fiber

Agreement. India under MFA received a quota of 2 percent and 3 percent in the US

and European markets. However in 1995, a new agreement, Agreement on Textile

and Clothing (ATC) was signed and this was aimed at phasing out the MFA, this in

effect ended the quota regime. This is of benefit to developing nations like India,

which has a big textile industry setup. The Indian textile industry has a peculiarity i.e.

not only the industry grows its own raw materials like silk, cotton, jute, wool but also

processes the same into high value products like fabrics and garments.

Our main competitors in the textile sector include China, Bangladesh, Sri

Lanka, Indonesia and Pakistan. Like India, these countries too are cost-effective

producers due to advantage of lower labor costs. But we have advantage over them,

say if we compare labor cost of china they may have an upper hand but still we can

see that biggest advantage we have is the capital cost. One big advantage we have

over the whole of Asia would be from outsourcing.

The Indian textile industry has a long way to go to achieve a sustaining

competitive advantage. The industry is very much fragmented and poor access to

finance and technology has been affecting the growth prospects of smaller

manufacturers. We face problems due to new market dynamics, high power cost, and

lack of basic infrastructure facilities. We can see that even though the Indian textile

goods are known internationally through generic names like Mysore Silk,

Kancheepuram Silk, Bengal Cotton and Kashmiri Shawl, the irony is that none of

these has been promoted aggressively in the international market. We also suffer from

overcapacity, outdated technology, labor problems and debt levels that strained

profits. There are heated debates on Chinas competitive edge over the Indian industry

took over the center-stage and, with China often being pronounced as the biggest

gainer after the removal of restrictions or quotas on textile clothing. While India has

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an advantage of a low-cost raw material base and abundant cheap labor, it is less

competitive than China.

Over the past years, companies have to setup captive power plants to ensure

regular supply and control costs. Replacing high cost fuel with cheaper alternatives,

such as LNG for Naphtha, was another to cut costs. The removal of reservation of for

small scale units in the garment sector has also stimulated the investment in the

sector. Fabric makers have setup garment manufacturing units to cater the needs of

export market. The fragmented nature of the industry has made its supply chain

unreliable. It takes India between 40 and 60 days to ship goods to US, while it takes

China around 15 days, because of the letters superior infrastructure.

The year 2004 saw the Indian textile industry waking up from its prolonged

hibernation. The industry witnessed intense preparation for the post quota regime on

the part of players who believed that India would be the next best alternative source of

apparel. A number of companies took to upgrading their out dated technologies. The

Indian textile industry is racing against time and there is a feeling that if critical gaps

are addressed in a time-bound manner, the industries can double its presence in the

global market by 2010.

1.2 COMPANY PROFILE

1.2.1 KITEX LIMITED

Anna Group’s Textile unit KITEX LIMITED was established in 1975 at

Kizhakkambalam Always in Ernakulum District. This prestigious company one of the

vibrant divisions of Anna –Kitex group of companies is a celebrity among industrial

giant in our country. Their products have high demand and they were trying to create

and maintain their customers in this competitive world with their high quality. The

shares of the company are held by the proprietor are themselves. Kitex has strength of

well experienced managers who guide the organization towards excellence. Kitex has

ISO 9001-2008 certification. Kitex Limited has seven departments and they follow

military type of organization structure.

Through the years, the company has carved a niche for itself in this highly

competitive industry with its tradition of world class quality of its products. The Kitex

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range of garments manufactured in the multi core factory is popular brand that is

recognized not just within India, but abroad too. Catering to the fashion conscious

markets across the world made from 100% combed cotton. Kitex bed sheets are

suitable for all climates and come in a variety of shades and designs.

Kitex Limited is a union free company. The plant has the capacity to produce

cotton fabrics, polyester blends, grey cloth, bed sheets, lunges, dhotis, fabric school

and college bags, travel bags, inner wears, shirting and suiting, kid’s wearetc. The

plant functions around the clock in three shifts and it has a capacity to produce 35000

square meters per day. The products are market through the network of over 2000

dealers. The company was established to set up an efficient estate that provide

technical industrial ,financial and marketing facilities to power loom owners and to

create job opportunities. To create unemployed considerable infrastructure facilities

have been built by way of building, electrical distribution systems, supporting

machineries for wrapping sizing etc. to help power loom owners. About 400 power

loom were established in premises under the banner of Kizhakkambalam Textile

Limited (which has been renamed as Kitex Limited)

The group has got highest reward for the welfare of the employees and public

several charitable programs are organized for the lower strata of the society. The

group is also providing a very good accommodation and canteen facility to employee

who hails from all over India.

In a market survey done in 2007 consumerable products named TOP 20

PRODUCTS in Kerala, Kitex got 11th rank with score of 201.8736.The rank decided

on basis of consumers acceptance or popularity.

1.2.2 VITAL STATISTICS

Name : KITEX LIMITED

Address : Kizhakkambalam , Alwaye, Ernakulam

Registered Office : Kizhakkambalam

Year of Commencement : 1975

Nature of incorporation : Public Limited Company

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Nature of Business : Manufacturing cotton textiles, bags, cotton fabrics,

grey

Chairman : Mr.M.C.Jacob

Managing Director : Mr. Bobby .Jacob

Type of Product : industrial product and consumer products

Name of Product : Scoo Bee Day Bags and Travell Day Bags

Brand name of product : KITEX

1.2.3 VISION

A world class manufacturing company focusing on all around business

excellence through a Total Quality Management (TQM) system with committed

leadership ‘effective team work delighted customers and satisfied employers in an

environmental friendly organization.

1.2.4 MISSION

To manufacture fabrics and processed fabrics as per the specification efficiently in a

professional and environment friendly manner, on time and at the right cost at with

higher customer specification to become a world class organization through

continuous improvement.

1.2.5 QUALITY OBJECTIVES 2010-2011

a)FABRIC DIVISION

To maintain the sales quantity OF 2009-2010 during the ear and 2010-2011 in

the context of global recession.

To reduce the sales below 0.25% of the total sales volume.

b)BAG DIVISION

To increase the sales quantity of school bags by 10% with respect to sales

quantity for the previous year.

To reduce the customer complaint by 10% with respect with previous year.

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c) GARMENT DIVISION

To increase the capacity utilization by 25% from the existing level.

To increase the number of dealers by 25%.

d) QUALITY POLICY

We are committed to manufacture and deliver quality fabrics ,bags and ready-

made garments as per the costume specification and requirements ,efficiently in a

professional and environment friendly manner on time and at the most customer

satisfaction while during to become a world class organization through continual

improvement

.

1.3 STRATEGIC BUSINESS UNIT OF ANNA GROUP

1.3.1ANNA GROUP OF COMPANIES

More than three decades ago, in 1968 when Mr.M.Jacob founded the Anna

Aluminum Company, he made a break with the past. Belonging to an affluent family

of plantation owners, he ventured into the risky world of manufacturing industry and

hoped for the best, while working very hard to make his maiden venture a great

success.

.

1.3.2ANNA ALUMINIUM

Anna aluminum is the flagship company of Anna group. Engaged in the

manufacturing and the marketing of vessel and utensils as per ISI standard s for the

past three decades, it is presently the only company having ISI certification for the

vessels in Kerala. The company manufactures vessels only using 99.55 pure

aluminum ingots.

1.3.3SARAS SPICES

Sara’s spices were found in 1978 to process and market, domestically and

internationally. Spices and hill product like pepper and cardoon, turmeric, masala &

curry powder. High standard of quality and hygiene have won arcades at home and

abroad as well as AGMARK etc.

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1.3.4KITEX LIMITED

Anna group weaving unit, KITEX limited was established in 1975. The

company is engaged in the production of fabric made of cotton and other blends grey

cloth bed sheets and lungies. Through the years, the company has carved a niche for

itself in this highly competitive industry with its tradition of world class quality of its

products. The Kitex range of garments manufactured in multi crore factories are a

popular brand that is recognized not just within India but abroad too ,creating to the

conscious market across the world. Made from 100% combed cotton ,Kitex bed

sheets are suitable for all climates and come in variety of shades and designs.

At the down of new millennium Kitex entered into the school bag and college bag

industry under the brand name Scoo Bee Day and then also entered into the

production of travel day bags under the brand name Trawell Day. Some of the

important products available under Kitex are:

Dogobert Shirting and suiting

Agna and Adonis inner wear.

Scoo Bee Day Bags

Travel day bags

1.3.5KITEX GARMENTS LIMITED

Kitex Garments Limited is developed solely to manufacture and export

readymade garments like hosiers, shirts woven, polar fleece,t-shirts,night wears, and

cotton under garments like inner wear, outer wear and knitted cotton wears. The

highly equipped and flexible manufacturing system makes Kitex garments extremely

capable of adapting vigorously to the changing needs of the world fashion market.

The company has stopped the production and export of adult garments and will focus

exclusively on children’s garments for which a new company is floated Kitex

Children’s wear Limited

.

1.3.6KITEX COMMUNITY COLLEGE

Kitex community college is started for the purpose of training for unemployed

people to provide employment opportunities. Presently the courses are available in

the community college are Life Copying ,Communication General

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English ,Apprenticeship and training ,tailoring ,bag making and utensil

manufacturing.

1.3.7SEALAND MARINE LIMITED

It’s a new company incorporated with a view to the new trust area namely

Marian Exports. The company has acquired over 100 acres in Pondicherry for setting

up an integrated aqua culture division ,comprising hatchery and grower ponds.

Increased field of shrimps through effective scientific management has enabled to

bring in much ridded foreign exchange to the company

.

1.3.8KITEX EXPORTS LIMITED

The Kitex Export Limited is the merchant export house of the Kitex group

exporting a range of all products all over the world.

1.4 MARKETING DEPARTMENT OF KITEX

Kitex Limited has got a very good marketing department ,controlled by

efficient and dynamic marketing managers. Marketing managers reports to General

Manager and Managing Director. Marketing department is divided into three

sections such as Marketing ( Grieve Fabric ) Marketing ( Finished fabric /bags) and

Marketing ( Advertising and sales promotion ). Under each section Assistant

Managers ,Marketing Executives ,salesman is there to assist him. The company

markets its processed products mainly through dealers. Almost all Kitex products are

available at the dealer shops. The products are transported to the dealers by delivery

vans. Sales executives take orders of different items from the dealers once in a

month.

The company is selling its greige fabrics as such as to various garment

exporters to Mumbai ,Delhi ,Calcutta ,and Ahmedabad etc. . 75% of the sales are

done through authorized agents on commission basis and balance is through direct

marketing. The garments manufactured by the group under the brand name Kitex are

expected all over the world.

Marketing manager is the one who decides the marketing strategies that is to

be adopted and every major decision ,which affects marketing. But while making

some strategies and important decisions approval of the Managing Director is

required .

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After collecting the orders from the dealers through sales executives the

Marketing Manger have to forward the orders to production Manager sits together

and decide the production plan.

1.4.1 CO-ORDINATING OF MARKETING ACTIVITIES

The marketing executive in Kitex follows certain procedures. All sales

executives have to report to the assistant managers in sales every day. The assistant

manager and marketing manager are in constant touch with the sales executives who

are in the field. The sales executives have submitted daily sales report in all

Mondays. There is meeting of all personnel in marketing department is presided by

the General Manager. In this meeting all the activities and achievements are

discussed. New plans and strategies to increase the sales formulated and the other

issues are discussed.

1.4.2 MARKETING POLICY

Kitex has a dealer network of more than 25000 dealers spread all over

Kerala ,Karnataka and Tamil Nadu. There are direct outlet in Kerala and Tamil Nadu

. dealership are allotted only after assessing credit worthiness ,efficiency etc, the

company’s sales representatives deliver the goods to the dealers at their places as per

the over placed by them. The company motivates the sales executives by providing

them classes of expert trainers in sales. The dealers got 10% interest on their trade

deposits annually. The company also does various activities for motivating the

dealers. If a dealer achieves the target placed by the company then he will get various

gifts such as free domestic tours ,price coupons etc., the company also conduct dealer

meets where all dealers along with their families come together and celebrates .

Salesman is also motivated by the company by giving prize coupons which will be

deposited in the boxes of order.

1.4.3 MARKETING STRATEGY

Marketing department of Kitex is very vigilant of the external and internal

environment and well aware of the market potential ,major competitors ,strength and

weakness of the company etc. as a result of stiff competition ,the top management

has appointed a general manager (marketing) who looks overall activities very

efficiently.

The company uses various promotional tools such as advertisement in print

media and television. Earlier the company used to advertise one FM Radio. But now

after doing research, the company officials found that the effect of those Radio

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advertisements is not up to the market. The company has got various advertisement

agencies like Chavera Agencies, X Dous and TVC Factory etc. In all promotional

activities emphasis is on the quality of the product. The company also gives one year

guarantee for all its products.

1.4.4 MARKET SEGMENTATION

Market segmentation is made on the basis of age group ,task and preference

etc. and the marketing segmentation procedure of Kitex mainly focus on survey.

Marketing manager heads the survey process and the staff of research and

development department does this process which include internal interview with a

focus group of customers. These surveys will help to know the changing behavior of

customers taste and preference etc. using research and development which is

administered to a sample of customers to collect data on the following brand

awareness and rating ,product usage and patter ,demographic

psychographic ,psychographic or geographical details of respondents.

1.4.5 MARKETING MIX

It consists of everything a firm can do to influence demand for its products.

Kitex also follows the idea of marketing mix they are,

1.4.6 PLACE MIX

Location of the plant is one of the first decisions an entrepreneur has to make

earning maximum profit. Location determines the survival as well as the property of

business in free market economy. The unit is located in Kizhakkambalam, Aluva.

The total extend of land is about 1650000 square feet. It is well connected with the

road. The availability of the skilled and unskilled labour is also a factor in selecting

the location.

1.4.7 PRODUCT MIX

The greige fabrics produced are of finest quality and mostly used for export

purpose. They provide greige fabric lungies ,bedsheets etc. in various products is

reputes for its quality and free weaving defects up to greater extents. The special

feature is that raw materials are passed through strict inspection.

1.4.8 PRICEMIX

The company maintains a stable price for a longer period of time. Price of

products depends upon the price of the yarn. It maintains a constant price and

concentrates on the quality of the product. So it requires the less investment in

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advertisement and sales promotion and also a very well formulated pricing policy is

provided.

1.4.9 PROMOTION MIX

To promote its products advertisement are used by Kitex. The basic function

of an advertisement is to influence and motivate people to buy products. In Kitex

various advertisement agencies are called upon duty and brief idea is given about

what to advertise and these agencies prepare a pre demonstration.

Television - Doordarshan, Asianet, Surya etc.

Video - CEE Videos , SAN Communication

Closed circuit - KSRTC , Railway station etc.

Print Media All Malayalam dailies, Magazines like Vanitha,

Grihalakshmi etc.

Demonstration - Club and exhibitions, Banner, Metal Boards, Wall

paper

Advertisement agency - TVC Factory, Ernakulam

Paper advertisement - Chavera Agency, X Dous

1.5 CHANNEL OF DISTRIBUTION KITEX

Distribution is the act of carrying goods or services from the producer to the

consumer. Distribution of consumer goods,

Producer Consumer

Producer Retailer Consumer

Producer Wholesaler Retailer Consumer

Distribution of industrial goods,

Producer Industrial consumer

Producer Agent Industrial consumer

Customers of Kitex are average and above average people. There is approach as

favorable condition for Kitex in the markets and the company channels of

distribution.

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1.6 INCENTIVE SCHEMES TO DEALERS

In Kitex limited cash discount is the main incentive given to dealers.. If a

dealer purchase more quantity and at the same time make payment in cash

immediately, cash discount is allowed. Apart from these dealers is given quantity

discount also when they purchase more goods at a time. Sometime the dealer gets

each quantity discount simultaneously.

Main incentives are,

Cash discount

Quantity discount

15 days credit

Alternative ways supply

Prompt service

Dot service

Advertisement support.

This year the company excepts 20 -30% increase in sales.

1.7 SCOO BEE DAY

At the dawn of the new millennium the new generation was presented with an

innovative school bag from Kitex, the main off shoot of Anna group. Scoo Bee Day

bags are compactly designed with unique features that make it durable,

colorful ,comfortable and easy to carry. The bag features anti strain shoulder paddings

and acupressure buds specially designed to minimize the strain on the back and

shoulders.

Scoo Bee day , from the house of Kitex has a wide range of school bags which

became an instant hit, and scoo bee day came a close companion to all school going

kids. With shoulder strap cushions and rear padding for added comfort, Scoo bee day

bags comes in various colour combinations. Using Ribstop fabric and Leak proof

material scoo bee day bags are attractively priced. The unique features include special

features include special pouch for waterbottles,Tiffin boxes and even a secret pocket.

1.7.1 FEATURES OF SCOO BEE DAY BAGS

Made from imported Dineer Nylon for durability

Shoulder strap cushion to prevent shoulder pain

Soft padding and acupressure buds on the rear side to cushion your back

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Unique stitching using strong nylon threads

Quality zip with zip guard to prevent water leaking into the bank

Secret pocket to hold chocolate and money

15 different colour combinations

Special leak proof Tiffin box pouch at attractive prices

Bags for college and travel purposes also available

1.7.2 PRODUCTS IN SCOO BEE DAY

Romeo

Gypsy large and medium

Pride

Challenge –large and medium

Promise- large ,medium and small

Liberty – large medium and small

Stylo – large medium and small

Twinkle

Delight – large medium and small

Hip – top – large, medium and small

Hero plus – large ,medium and small

Nova plus

Spark – large, medium and small

TRAWELL DAY BAGS

The renowned Anna – Kitex Group ,manufactures of quality consumer

products forayed into the travel bag segment with its travel day bags, wide range of

luggage and baggage products. Coming up with latest designs and models ,these

travel & every day travel luggage needs are designed to meet the modern trends and

requirements of the customers. Made from the imported materials ,the bags are

available in attractive styles and different colour combinations.

TRAWELL DAY BAG offers,

Travel bags

Trolley bags

Business bags

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Laptop bags

Back –Pack bags

Beauty case bags

1.8 Future vision of Kitex Limited

To reach excellent quality standard in the coming years.

To keep in pace with modern technologies and concepts

To organize supply of material at minimum cost without any compromise in

quality.

.A world class manufacturing company focusing on all around business

excellence through Total Quality Management (TQM) system with

committed leadership ,effective team work

The target primary audiences for campaign are children and the secondary audiances

are their parents. Television is the most preferred media currently used by the

manufacturers. The point of purchase promotion strategy is also followed by the

manufacturers through the retail outlets.

The major school bag manufacturers in India are :

1. Bharath packers , New Delhi

2. Uniplas , Chennai

3. Imprez , Mumbai

4. Balaji Bag ,Banglore

5. Brands ,New Delhi

6. Noor , Tamil Nadu

7. Anna Group , Kerala

8. Lunar Bags , Mysore

1.9 School bag industry in Kerala

School bag industry is dominated by unorganized sector, except for a few

national brands like Duck Buck and Bata. Most of the players have seasonal nature.

The demand for the products arises during the school opening. Even though school

bags are mainly dominated by the local manufacturers ,branded school school bags

are also available. One of the well-known names among the branded school bags is

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the brand Scoo Bee Day. School bag industry focuses a great threat from China.

Chinese bags are less costly than our local bags. However the branded companies

come up with providing advertisements in Television. The school bag industry

mainly focuses on the kind and preprimary segments. These groups are more

addicted to comic characters.

ORGANIZATION STRUCTURE

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Managing Director

General Manager

Marketing Manager

Financial Manager

Production Manager

Purchase Manager

Administration & personnel

manager

Accountants assistant

Taxation

Assistant Marketing manager

Assistant advertising & sales Manger

Supervisor

Supervisor

Clerical staff

Marketing representative

Sales representative

1.10 PRODUCT PROFILE

Kitex is engaged in the production of all verities of grey fabric made of 100%

cotton, cotton linen, cotton lycra, polyester lycra etc. in various weaves like cambric,

sheeting, poplin, mulls, easements, drills, twillslions, stain, bed fords, stripes dobbys

etc. lunges, dhotis, bed spreads etc. for replacement and international trade.

The products manufactured by the company are industrial goods and consumer

durable good. 85% of the goods (Grieg cloth) are sold as other companies per

production units in the textile and garments. 15% of the greige cloth manufactured by

company is converted to lunges, dhotis, mulls, and bed spreads. Various units in

Tamilnadu do this conversion. The conversion process includes resizing, mercerized,

bleaching, printing, dyeing etc. the products sent for processing will take one and a

half month for completing the cloth and are then repacked to make it ready for

dispatch.

1.10.1 Kitex bag division

At the dawn of the new millennium, Kitex entered in to baggage and luggage

industry under the brand name SCOOBEE Day and TRAWELL DAY respectively.

Kitex have a wide variety of travels bags, trolley bags, business bags, laptop bags and

back bags under the name of travel day. The factory is engaged in continuous

production of bags and a quality of 14 lakhs of bags came out the last year. The

fabrics for the bags are mainly imported from china, Taiwan etc. sample for the

design may be brought from outside the country to produce the best quality design

that can be matched with other international brands. New designs for the bags are

sketched using computers by various experts in the department. The production is

carried out on a continuous basis.

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OBJECTIVES OF THE STUDY

To study about the distribution channel of Kitex scoobeeday bag

To study about the market potential of scoobeeday bag

To find out brand position of scoobeeday bags

To examine the existing mechanism of supply of scoobee day bags.

To assist the dealer’s satisfaction level of scoobee day bags.

To find out the factors influencing the dealers to deal in scoobee day

bags.

To find out the present problems faced by dealers and to identify the

mechanism for enhancing effectiveness of distribution channel.

LIMITATION

1. The study does not evaluate the distribution channel in connection with

different market segment.

2. The accuracy of data is depends on the corrected answers given by the

respondent.

3. The survey is conducted in Ernakulam district only.

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CHAPTER-2

REVIEW of LITERATURE

In ancient days, education consisted of oral training followed by some manual

labour. It was the practices of the traditional ‘Gurukulam’ education system. The

students then known as the disciplines sit at the feet of guru and learn from face to

face. There was nothing to carry at that time. As days go by, education has become

more text oriented and the student is bounded to carry books in their hands.

In olden days, carrying books was not a tire some job, since the number of

books was very limited. As the number of books increased along with the advent of

the modern education system, it is impossible for students to carry their book and

allied utensils in their hands. Nor is it possible for them to carry in paper fold etc. it is

in this context bag were introduced for the use of children to keep their paraphernalia.

The bag is generally a container made of flexible material such as paper, cloth

leather etc. with an opening at the top used for carrying things from place to place. In

the present setup, bag is an important part of the student community. Now bag are

designed to suit the various requirements of students. It is useful, comfortable,

fashionable and convenient. There are Varity of bag with different features available

in the market. The young students are haunted by the convent well designed bags and

the parent also goes for durable and comfortable bags to be used by their children.

Distribution channels

A distribution channels is a set of interdependent organization that help make

a product available for use or consumption by the consumer or business user. Channel

intermediaries are firm or individual such as wholesaler, agents, brokers or retailers

who help move a product from the producer to the consumer or business user.

A company’s channel decision directly affects every other marketing decision.

Distribution decision can some time give a product a distant position in the market.

The choice of retailers and other intermediaries to sell mid-price range products while

they distribute top of the line products through high-end department and specialty

19

stores. The firm sales force and communication decisions depend on how much

persuasion, training, motivation and support to channel partners need whether a

company develops or acquires certain new depend on how well those product fit the

capabilities of its channel members.

Number of channel level

Company can design their distribution channels to make products and services

available to customers in different ways. Each layer of marketing intermediaries that

perform some work in bringing the product and its ownership closer 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.

Figure 1-a customer marketing channel

Channel 1 channel 2

channel 3

Figure 1- B business marketing channel

20

Producer

Consumer

Producer Producer

Retailer

Consumer

Wholesaler

Retailer

Consumer

Business Consumer

Business distributers

Business Consumer

Manufacturer’s representative or sales branch

Business distributors

Business Consumer

Producer Producer Producer

Channel 1 channel 2 channel 3

The number of intermediary level indicates the length of a channel. Above fig

1 A show a consumer distribution channels of different lengths. Channel 1, called a

direct marketing channel, has no intermediary levels, the company sells directly to

consumers. The remaining channels in figure are indirect marketing channels,

containing one or more intermediaries.

Figure 1-B shows some common business distribution channels. The business

marketer can use its own sale force to sell directly to business customers. Or it can

sell to various types of intermediaries, who in turn sell to these consumers. Consumer

and business marketing channels with even more levels can sometimes be found, but

less often. From producer point of view, a greater number of levels mean less control

and greater channel complexity. Moreover, all of the institutions in the channel are

connected by several types of flows. These include the physical flow of products, the

flow of

21

CHAPTER-3

RESEARCH METHODOLOGY

According to American marketing association “marketing research is the

function which links the consumer, customer and public to the marketer through

information used to identify and define marketing opportunities and problem,

generate refine and evaluate marketing action , monitor marketing performance and

our understanding or marketing as a process

Research design

As the study starts with drawing insights into research problem at the unit

level. For this study the research design was confirmed to descriptive research design

in order to understand the cause and effect of different variables which are connected

with the study.

Research method

The source of data: - Both primary and secondary has been collected for this

study.

3.1 PRIMARY DATA: primary data are those which are collected a fresh and for

the first time and thus happen to be original in character. For this study it has

Been collected through interview method from 100 respondents with the help of a

structured interview method questionnaire.

3.2 SECONDARY DATA: - as the exploratory stage of the study a detailed survey

of literature has been undertaken in order to familiarize with various aspects of

distribution channels in marketing. For this purpose, company balance sheet, internal

record, department & marketing documents were surveyed. A detailed survey of

literature could help the researcher to collect and discover the important variable

relevant to the problem. A pilot study has been conducted with help of a draft

schedule for evaluating the status quo of ScooBee day bags marketing during 201

Research instrument - Questionnaire

Sample size - 100

Sample technique - Simple random sampling

22

Tools - percentage analysis and graphical solution

3.3 Analysis tools

After the collection of data ,from the respondent each sample question are

coded and tabulated and then subjected to analysis. The data updated was analyzed

using the following tool.

3.4 Percentage

The percentage of the respondent coming under the same category was

founded as it helps to know the response of the dealers more clearly

3.5 Diagrammatic representation

Diagrams are used to represent the tabulated data diagrammatically. This will

give the vivid picture about the information collected.

3.6 Pie diagram

In the pie diagram , different segments in a circle represent percentage

contribution of various compounds to the total. This chart is very useful because it

clearly bring out the relative importance of the various components. Angle is to

represent 100% and the corresponding angles for each component can be founded by

multiplying 360 degree with percentage of components.

.

23

DATA ANALYSIS AND INTERPRETATION

TABLE NO: 1

FIELD OF DISTRIBUTION

OPININON NUMBER OF RESPONDENTS PERCENTAGE

WHOLESALER 50 50%

RETAILER 50 50%

TOTAL 100 100%

CHART NO:1-FIELD OF DISTRIBUTION

NUMBER OF RESPONDENTS

WHOLESALERSRETAILERS

Inference It is inferred that 50% of the respondents are wholesalers and 50% of

respondents are retailers.

24

TABLE NO:2

EXPERIENCE IN DEALING WITH THE KITEX SCOOBEE DAY BAGS

CATEGORY NUMBER OF RESPONDENTS PERCENTAGE

BELOW 2

YEARS 12

125

2-4 YEARS 19

19%

4-6 YEARS 47

47%

MORE THAN

6 YEARS 22

22%

TOTAL 100

100%

CHARTNO:2 EXPERIENCES WITH KITEX SCOOBEE DAY BAGS

EXPERIENCE WITH KITEX SCOOBEE DAY BAGS

BELOW 2 YEARS2-4 YEARS4-6 YEARSMORE THAN 6 YEARS

Inference

Majority of the respondents, about 47% have 4-6 years’ experience with Kitex

ScooBee Day Bags and 22% have more than 6 years of experience, 19% have 2-6

years and 12% have below 2 years of experience

25

TABLE NO:3

Present popular brand name in school bag business

Brand name Number of respondents Percentage

Scoobee day 55 55

Reebok 10 10

Diesel 15 15

Other 20 20

Total 100 100

Pesent popular brand name in school bag business

Scobee dayReebokDieselOther

Inference

Majority of the respondents have the opinion that the Scoo Bee Day is the

most popular brand name in the school bag business. Other important

brands are Diesel ,Reebok etc.

26

TABLE NO:4

Factor that influence you to deal with scoobee day bags

Factors Number of

respondents

Percentage

Price 20 20

Quality 43 43

Availability 15 15

Brand image 17 17

Other 5 5

Total 100 100

Factor that influence you to deal with scobee day bags

PriceQualityAvailabilityBrand imageOther

Inference

It is found that the factors that influence the dealers to stock Scoo Bee Day

Bags are quality of product and brand image.

27

Table No: 5

Satisfaction with the product line/ variety that Kitex provides

Category Number of respondents Percentage

Highly satisfied 23 23%

Satisfied 68 68%

Dissatisfied 7 7%

Highly Dissatisfied 2 2%

Total 100 100%

Chart No: 5

23%

68%

7%

2%

SATISFACTION WITH THE PRODUCT LINE / VARIETY THAT KITEX PROVIDES

Inference It is known that majority of the respondents about 68% are satisfied with

product line/ variety and 23 % were highly satisfied, 7% were dissatisfied and 2%

were highly dissatisfied

Table No:6

28

Table showing opinion regarding the credit facility of Kitex


Very good 16 16%

Good 23 23%

Average 46 46%

Poor 15 15%

Total 100 100%

Chart No 6

16%

23%

46%

15%

OPINION REGARDING THE CREDIT FACILITY OF KITEX

Category Very goodGood Average Poor

Inference:

Majority of the dealers about 46% have average opinion regarding the credit facility

of Kitex and 23% have good opinion and 16% have very good opinion and 15% have

poor opinion regarding the credit facility of Kitex.

Table No: 7

29

Flexibility of credit facility

Opinion Number of respondents Percentage

Yes 62 62%

No 38 38%

Total 100 100%

FLEXIBILITY OF CREDIT FACILITY

Alternatively Weekly

Inference:

It reveals that majority of respondents about 62% said that credit facility is flexible

and 38% said that credit facility is not flexible.

Table No:8

30

Order executed on time from the company


Yes 86 86%

No 14 14%

Total 100 100%

Chart No:8

ORDER EXECUTED ON TIME FROM KITEX

Alternatively Weekly

Inference:

It is inferred that 86% of the respondents are satisfied with the timely execution of

order by Kitex and 14% of respondents are not satisfied.

Table No:9

31

Frequency of visit of Kitex executives


Alternatively 22 22%

Weekly 12 12%

Fortnightly 10 10%

Monthly 56 56%

Total 100 100%

Chart No:9

22%

12%

10%

56%

FREQUENCY OF VISIT OF KITEX EXEC-UTIVES

Alternatively Weekly Fortnightly Monthly

Inference:

It exhibits that most of the respondents about % said that visits of executives is

monthly, 22% were alternatively, 12% were weekly and 10% said it is on for nightly.

Table No:10

32

Opinion regarding communication between Kitex and dealers


Very good 26 26%

Good 62 62%

Average 12 12%

Poor - -

Total 100 100%

VERYGOODGOODAVERAGEPOOR

Inference:

It exhibits that most of the respondents about 62% have good opinion regarding

communication between Kitex and 26% have very good communication and 12%

have average communication

Table no: 11

Factors influence you to stock a particular brand

33

Factors Frequency Percentage

Quality 40 26.0

Product demand 26 26.0

Dealers margin 18 18.0

Price 12 12.0

Others 4 4

Total 100 100

Factors influence you to stock a par-ticular brand

QualityProduct demandDealers MarginPriceOthers

Table no: 12

Frequency of purchase by dealers


34

Alternately 32 32%

Weekly 14 14%

Fortnightly 6 6%

Monthly 48 48%

Total 100 100%

Chart No: 12

PERCENTAGE

ALTERNATELYWEEKLYFORTNIGHTLYMONTHLY

Inference:

It exhibits that most of the respondents about 48% were ordered alternatively. 32%

were weekly, 14% were fortnightly and 6% were monthly

Table No:13

Kitex ltd has any sales promotional activity

35


Yes 57 57%

No 43 43%

Total 100 100%

Chart no:13

YES57%

NO43%

sales promotional activity

Inference:

It reveals that majority of respondents about 57% said that Kitex ltd has sales

promotional activity

Table no:14

36

Opinion about pricing of scoobee day bags


Comparatively high 32 32%

Reasonable 64 64%

Comparatively low 4 4%

Total 100 100%

OPINION ABOUT PRICING ABOUT SCOO BEE DAY BAGS

COMPARITIVELY HIGHREASONABLECOMPARITIVELY LOW

Inference:

It show that 64% of the respondents opinions about pricing of scoobee day bags is

reasonable and 32% of the respondents opinion is comparatively high and 4% of the

respondents opinion about pricing of scoobee day bags is comparatively low.

Table No: 15

Complaints occurring in Kitex scoobee day bags

37


No complaints 62 62%

Zip complaints 20 20%

Material complaints 7 7%

Stitching complaints 11 11%

Total 100 100%

Chart no: 15

COMPLAINTS OCCURING IN KITEX BAGS

NO COMPLAINTSZIP COMPLAINTSMATERIAL COMPLAINTSSTITCHING COMPLAINTS

Inference :

It is inferred that 62% of the respondents have no complaint about the product

scoobee day bags, 20% have Zip complaints, 7% have material complaints, and 11%

have stitching complaints

Table No:16

Any dissatisfaction regarding supply of scoobee day bags

38


Yes 37 37%

No 63 63%

Total 100 100%

Chart No:16

DISSATISFACTION REGARDING PRODUCT

YESNO

Inference:

It exhibits that 63% of the respondents were satisfied with the supply of scoobee day

bag and 37% of the respondents were dissatisfied with the supply of scoobee day

bags.

Chi-square test

39

To test whether there is any significant relations between years of experience and

field of distribution of Kitex scoobeeday bags

H0=There is no significant relationship between years of experience and field of

distribution. Of Kitex scoobeeday bags

H1=There is a significant relationship between years of experience and the field of

distribution of Kitex scoobeeday bags

What is your field of distribution

Total

Wholesaler Retailer

How long do you have experience with the Kitex scoobee day bag

Below 2 year 12 0 12

2-4 year 19 0 19

4-6 year 18 29 47

more than 6 year 0 22 22

Total 49 51 100

Inference


field of distribution a chi-square test was done. The cross table & Chi square value

shows that p= .000 and which is less than.05.Therefore there is dependency. So there

is significance difference between years of experience and field of distribution

To test whether there is any significant relationship between years of experience and

factors influence to deal scoobee

40

Value Df Asymp. Sig. (2-sided)

Pearson Chi-Square 55.557a 3 .000

H0=There is no significant relationship between years of experience and factors

influence to deal scoobee

H1=There is a significant relationship years of experience and factors influence to

deal scoobee


Below 2 year 2-4 year 4-6 year

more than 6 year

TOTAL

The factor that influence you to deal with scoobee day bags

Price 12 7 0 0 19

Quality 0 12 32 0 44

Availability

0 0 15 0 15

Brand image

0 0 0 17 17

Other 0 0 0 5 5

Total 12 19 47 22 100

Chi-Square Tests

Value dfAsymp. Sig. (2-sided)


Inference

There is a significant relationship years of experience and factors influence to deal

scoobeeday chi-square test was done. The cross table & Chi square value shows that

there is p= .00and which is less than .05.Therefor there is dependency. So there is

significance difference between years of experience and factors influence to deal

Experience with the Kitex scoobee day bag * Are you satisfied with the product

line/ variety that Kitex provides

41

To test whether there is any significant relationship between years of experience and

satisfied with variety of Kitex products

H0=There is no significant relationship between years of experience and satisfied

with variety of Kitex products

H1=There is a significant relationship between years of experience and satisfied with

variety of Kitex products

Are you satisfied with the product line/ variety that Kitex provides

Highly satisfied Satisfied

Dissatisfied

Highly dissatisfied TOTAL


Below 2 year

12 0 0 12 12

2-4 year 11 8 0 19 19

4-6 year 0 47 0 47 47

more than 6 year

0 13 2 22 22

Total 23 68 7 2 100



INFERENCE

There is a significant relationship years of experience. And satisfied with variety of Kitex products, a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and satisfied with variety of Kitex products

Experience with the Kitex scoobee day bag * what is your opinion regarding the credit facility of Kitex

42


credit facility offered by Kitex

H0=There is no significant relationship between years of experience and credit

facility offered by Kitex

H1=There is a significant relationship between years of experience and credit facility

offered by Kitex

What is your opinion regarding the credit facility of Kitex

Very good Good Average Poor

TOTAL


Below 2 year

12 0 0 0 12

2-4 year 4 15 0 0 19

4-6 year 0 8 0 0 47

more than 6 year

0 0 15 15 22

Total 16 23 46 15 100

Value df Asymp. Sig. (2-sided)


INFERENCE

There is a significant relationship years of experience and credit facility offered by Kitex. A chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and credit facility offered by Kitex

Experience with the Kitex scoobee day bag * whether the credit facility is

flexible

43


credit facility of Kitex bags is flexible

H0=There is no significant relationship between years of experience and credit

facility of Kitex bags is flexible

H1=There is a significant relationship between years of experience and credit facility

of Kitex bags is flexible

Whether the credit facility is flexible

TotalYes No



2-4 year 19 0 19

4-6 year 31 16 47

more than 6 year

0 22 22

Total 62 38 100



INFERENCE

There is a significant relationship years of experience and credit facility offered by Kitex.A chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and and credit facility is flexible

Experience with the Kitex scoobee day bag * Are the order executed on the time

from Kitex

44


their order executed on the time from Kitex

H0=There is no significant relationship between years of experience and their order

executed on the time from Kitex

H1=There is a significant relationship between years of experience of and their order

executed on the time from Kitex

Are the order executed on the time from Kitex

TotalYes No



2-4 year 19 0 19

4-6 year 47 0 47

more than 6 year

8 14 22

Total 86 14 100

INFERENCE

There is a significant relationship years of experience. And their order executed on the time from Kitex and satisfied with variety of Kitex products, a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and and their order executed on the time from Kitex

To test whether there is any significant relations between years of experience and frequency of the visit of Kitex executives

45

Value DfAsymp. Sig. (2-sided)


H0=There is no significant relationship between years of experience and frequency of the visit of Kitex executives

H1=There is a significant relationship between years of experience and frequency of the visit of Kitex executives

What is the frequency of the visit of Kitex executives

Alternative Weekly

Fortnightly Monthly

TOTAL


Below 2 year

12 0 0 0 12

2-4 year 10 9 0 0 19

4-6 year 0 3 34 34 47

more than 6 year

0 0 22 22 22

Total 22 12 10 56 100

Value Df Asymp. Sig. (2-sided)


INFERENCE

There is a significant relationship years of experience. And frequency of the visit of Kitex executives and, a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and frequency of the visit of Kitex executives

To test whether there is any significant relations between years of experience and communication between distributors and Kitex

46

H0=There is no significant relationship between years of experience and communication between distributors and Kitex

H1=There is a significant relationship between years of experience and communication between distributors and Kitex

What is your opinion regarding communication between you and Kitex

Very good Good Average TOTAL


Below 2 year 12 0 0 12

2-4 year 14 0 0 19

4-6 year 0 0 0 47

more than 6 year

0 12 12 22

Total 26 62 12 100

Chi-Square Tests



INFERENCE

There is a significant relationship years of experience. Communication between distributors and Kitex ,a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and communication between distributors and Kitex

Experience with the Kitex scoobee day bag * Rank the factors influence you to stock a particular brand

47

To test whether there is any significant relations between years of experience .and rank of the particular brand

H0=There is no significant relationship between years of experience .and rank of the

particular brand

H1=There is a significant relationship between years of experience .and rank of the

particular brand

Rank the factors influence you to stock a particular brand

Very good Good

Average

Poor

Very poor

TOTAL


Below 2 year

12 0 0 0 0 12

2-4 year 19 0 0 0 0 19

4-6 year 9 26 12 0 0 47

more than 6 year

0 0 6 12 4 22

Total 40 26 18 12 4 100



INFERENCE

There is a significant relationship years of experience and rank of the

particular brand, a chi-square test was done. The cross table & Chi square value

shows that there is p= .00and which is less than .05.Therefor there is dependency. So

there is significance difference between years of experience and rank of the particular

brand

48

Experience with the Kitex scoobee day bag * what is the frequency of your

purchase

To test whether there is any significant relations between years of experience and the

frequency of their purchase

H0=There is no significant relationship between years of experience and the

frequency of their purchase

H1=There is a significant relationship between years of experience and the frequency

of their purchase

What is the frequency of your purchase

Alternativ

e WeeklyFortnightly Monthly

TOTAL


Below 2 year

12 0 0 0 12

2-4 year 19 0 0 0 19

4-6 year 1 14 26 26 47

more than 6 year

0 0 22 22 22

Total 32 14 6 48 100



INFERENCE

There is a significant relationship years of experience. And frequency of their purchase, a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and frequency of their purchase

49


Kitex ltd have any sales promotional activity.

H0=There is no significant relationship between years of experience and Kitex ltd

have any sales promotional activity.

H1=There is a significant relationship between years of experience .and Kitex ltd

have any sales promotional activity.

Does Kitex provide any promotional activities to you, if yes what are they

TotalYes No



2-4 year 19 0 19

4-6 year 26 21 47

more than 6 year

0 22 22

Total 57 43 100



INFERENCE

There is a significant relationship years of experience. And ,a chi-square test was done. The cross table & Chi square value shows that there is p= .00and and Kitex ltd have any sales promotional activity. Which is less than .05.Therefor there is

dependency? So there is significance difference between years of experience and Kitex ltd has any sales promotional activity.

50

Experience with the Kitex scoobee day bag * Opinion about pricing of scoobeeday bags

To test whether there is any significant relations between years of experience and. Opinion about pricing of scoobee day bags

H0=There is no significant relationship between years of experience and. Opinion about pricing of scoobee day bags

H1=There is a significant relationship between years of experience and. Opinion about pricing of scoobee day bags

Opinion about pricing of scoobee day bags

Total

Comparatively high Reasonable

Comparatively low


Below 2 year 12 0 0 12

2-4 year 19 0 0 19

4-6 year 1 46 0 47

more than 6 year

0 18 4 22

Total 32 64 4 100



INFERENCE

There is a significant relationship years of experience Opinion about pricing of scoobee day bags. And ,a chi-square test was done. The cross table & Chi square value shows that there is p= .00and and Kitex ltd have any sales promotional activity. Which is less than .05.Therefor there is dependency? So there is significance difference between years of experience and Opinion about pricing of scoobee day bags

51

Experience with the Kitex scoobee day bag * Complaints occurring in Kitex

scoobee day bags

To test whether there is any significant relations between years of experience of distributors and Complaints occurring in Kitex scoobee day bags

H0=There is no significant relationship between years of experience of distributors and Complaints occurring in Kitex scoobee day bags

H1=There is a significant relationship between years of experience of distributors and Complaints occurring in Kitex scoobee day bags

Complaints occurring in Kitex scoobee day bags

No complaints

Zip complaints

Material complaints

Stitching complaints

TOTAL


Below 2 year

12 0 0 0 12

2-4 year 19 0 0 0 19

4-6 year 31 16 0 0 47

more than 6 year

0 4 7 11 22

Total 62 20 7 11 100

INFERENCE

There is a significant relationship years of experience. And Opinion about pricing of scoobee day bags, a chi-square test was done. The cross table & Chi square value shows that there is p= .00and which is less than .05.Therefor there is dependency. So there is significance difference between years of experience and Opinion about pricing of scoobee day bag

52

Chi-Square Tests



Experience with the Kitex scoobee day bag * any dissatisfaction regarding supply of scoobee day bags


dissatisfaction regarding supply of scoobee day bags

H0=There is no significant relationship between years of experience and


H1=There is a significant relationship between years of experience of .and


Any dissatisfaction regarding supply of scoobee day bags

TotalYes No



2-4 year 19 0 19

4-6 year 6 41 47

more than 6 year

0 22 22

Total 37 63 100



INFERENCE

There is a significant relationship years of experience and dissatisfaction regarding

supply of scoobee day bags ,a chi-square test was done. The cross table & Chi square

value shows that there is p= .00and which is less than .05.Therefor there is

dependency. So there is significance difference between years of experience and


53

FINDINGS

1. The existing distribution of Kitex Scoo Bee Day Bags is from organization to

wholesalers ,then wholesalers to retailers and finally to customers.. They also have

direct selling through company outlets.

2. From the survey conducted among dealers, it was found that majority of the

dealers have 4 -6 years of experience with Kitex Scoo Bee Bags.

3. Majority of the respondents have the opinion that the Scoo Bee Day is the

most popular brand name in the school bag business. Other important brands are

Diesel ,Reebok etc.

4. It is found that the factors that influence the dealers to stock Scoo Bee Day

Bags are quality of Product and brand image.

5. It is found that 68% of dealers are satisfied with the product line/variety that

Scoo Bee Day provides.

6. From the study it is found that 465 of the dealers have average opinion

regarding credit facility of Scoo Bee Day Bags..

7. 62% of the dealers feel that the credit facility is flexible.

8. 865 of dealers are satisfied with the order executed on time from the company.

9. It is found that the 56% dealers explain that the frequency of the visit of Kitex

executives is monthly.

10. Analysis shows out of 100% of respondents ,62% of them have good opinion

regarding communication between the dealer and Kitex.

11. It is found that the important factors that influence the dealers to stock a

particular brand are product demand and quality.

12. Majority of the dealers about 48% purchase products monthly.

13. It is found that majority of respondents about 57% said that Kitex ltd has sales

promotional activity

14.Analysis shows ,64% of respondent’s opinion about pricing of Scoo Bee Day Bags

is reasonable.

54

15.Majority of the respondents about 62% have no complaints about the product

Scoo Bee Day.

16.From the survey it is found that 63% of dealers are satisfied with the current

distribution of Scoo Bee Day Bags. And also we found that some dealers are not

satisfied because of the direct selling through company outlets with 10% discounts.

RECOMMENDATIONS

If flexible more profit margins through liberal schemes and incentives could be

adopted to make the dealers push the Kitex items more.

If the organization starts a new direct outlet it should make sure that the

company’s outlet should not affect the sale of dealers of that location.

Much stronger relation could be built with dealers by taking them into confidence

through consistent promotion of the product.

The company should frequently advertise the different types of bags launched in

every season and should also the exclusive dealers in each location.

Sales promotion scheme should be improved by introducing gift like

crayons ,water bottles ,name slip etc. with bags.

The company must make sure that bags are delivered when there is an order placed

by dealer.

In order to cater seasonal demand ,the product should be launched two months

prior to school and college re-openings.

Kitex limited should introduce more Scoo Bee Day Bags of different colour ,size,

styles etc. and they should try to come up with much more variety of bags especially

for the college students.

They should try to make some efficiency in the price fixation of the products.

Currently Scoo Bee Day Bags have markets in Kerala and Tamil Nadu, so they

should expand the market to other states also.

55

CONCLUSION

A detailed study of Scoo Bee Day Bags has been conducted through a survey among

the dealers randomly in Ernakulum district. The project titled is “A study on

effectiveness of distribution channels of Scoo Bee Day Bags: a case study with

reference to Kitex limited ,in Kerala State”.it was an attempt to study the various

opinion of dealers of school bags in general and Scoo Bee Day bags in particular.

The study helps to make some recommendations to improve the sale of Scoo Bee

Day Bags and to improve the relationship between the dealers and the company.

In respect of the study, I conclude that there is a considerable amount of market

share for Scoo Bee Day ,dealers are impressed with the distribution of bags and they

have good opinion about the quality of the bag. I hope that this study will help the

company to know their dealer’s preference of Scoo Bee bags and there by helps to

adopt suitable strategies to satisfy both the dealers and the customers.

BIBLIOGRAPHY

56

Books:

• Kotler Philip, '''Marketing management”, Prentice-Hall of India Pvt Lid,

New Delhi, 8th e.d., 2006.

• Kothari C.R, “Research Methodology”, New Age International(P) Ltd,

Jfew Delhi,2nd e.d., 2007.

• Joshi R-L., Manoria C.B, Principles and practices of marketing in India,

Kitab Mahal 1985

• R.L Potti., Quantitative Techniques, Yamuna Publications, 2002.

Web-sites visited:-

www.annaaluminium.com

www.textileindustryindia.com

www.keralalatestileindustry.com

57

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