Retailers satisfication towards kanwal spices

A PROJECT REPORT ON

“RETAILER’S SATISFACTION TOWARDS

KANWAL FOOD AND SPICES PVT.LTD. ”

Offered by:

KANWAL FOOD AND SPICES

In partial fulfillment for the award

Of

THE BACHOLERS OF BUSINESS ADMINSTRATION

A STUDY ON RETAILERS SATISFACTION TOWARDS KANWAL FOOD AND SPICES

2

J&K


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Certificate

This is to certify that bearing is a student of management department of

BGSB University Rajouri.

He has successfully completed summer training at Kanwal Foods and

Spices (Anantnag). The project work entitled “Retailers Satisfaction

Towards Kanwal Food & Spices” is recorded of his original work

carried out as project training during period from 1 June to 15 July 2013.

This work has not been submitted to any other university\ institute.

Place: ……………. Mr VINAY KUMAR

Date: ……………. ASST. PROF. SCHOOL OF MANAGEMENT

BGSBU, RAJOURI.


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Acknowledgement

First of all I would like to express my gratitude to Almighty Allah

who bestowed his blessings on me and gave me the courage and

right type of environment for completion of my project. I owe a

deep sense of indebtedness to my parents who have always been a

perennial source of inspiration for me. I am very thankful to Mr

Mirza Rashid Ahmad Beigh (my ideal teacher) who acted as a

back bone to me in every auspect since the begning on top of that

I am very thankful to Mr Vinay Kumar who has sincerely

supported me with the valuable insights into the completion of

this project.

I am highly indebted to Mr.Farooq Amin, Director,

Marketing & Sales (KFS) for providing me an opportunity to

work with his organisation.

If words are considered to be the signs of gratitude then

let these words convey the very same my sincere

gratitude to KANWAL foods & spices Pvt. Ltd. for

providing me with such a great opportunity & giving

necessary directions on doing this project to the best of

my abilities. I am highly indebted to Mr Tawseef

Ahmad who has provided me with the necessary

information and also support extended out to me in the

completion of this project.

Besides these I would like to thank the pioneers in the

field of Marketing Management and allied fields, which shaped

my understanding through their rich and valuable contribution

in these fields. Last but not the least I would like to thank all the

retailers of KFS for their active participation and cooperation

without which it couldn’t have been possible to complete the

study.


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TO WHOM IT MAY CONCERN

This is to certify that project report entitled “Retailers satisfaction

towards KANWAL spices.” Was successfully undertaken and thereof

completed under my supervision within the stipulated time, by Peer Asif

Ahmad (26-BBA-2011) School of Management Studies Baba Ghulam Shah

Badshah University Rajouri j&k

: Further it is certified that the above mentioned project is the bonafide

work of the above mentioned student

.

General Manager

Kanwal Foods & Spices (I) Pvt. Ltd.


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Table of Contents

S.No. Page No.

Chapter One

1 Introduction 5

Chapter Two

Profiles & Review Of Literature

2 Industry Profile 12

3 Company Profile 20

4 Theoretical Background Of The Study 23

Chapter Three

Objectives & Research Methodology 26

5 Scope Of The Study 27

6 Research Methodology 28

Summary of Findings 31

7 Conclusion 35

Chapter four

8 Recommendations And Suggestions 37

9 Appendix 40

Questionnaire- I,II

10 11

Bibliography Webliography

43


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Introduction

The Distribution variable of the marketing mix is described as the “place”

component of the Four Ps. It is the most complex and challenging part of

marketing functions. In terms of strategic impact, though, distribution

activities go well beyond the mere effects of the location where products

and services are available. It is best conceptualized as a channel because

it represents a flow of goods, services, information, and funds between

manufacturers, market intermediaries, and the end user of the product.

Channel of distribution is defined as:

“Sets of interdependent organizations involved in the process of making a

product or service available for use or consumption.”

The distribution variable in the marketing mix holds tremendous potential

for companies to achieve competitive advantage while at the same time

providing increased satisfaction to customers. Many analysts believe that

the distribution factor is underappreciated for its potential to contribute

to the efficiency and effectiveness of a company’s overall marketing

operation. As companies attempt to cultivate global markets, channel

design and strategy are critical to success in taking advantage of global

market opportunities.

The channel of distribution is an excellent vehicle for value-added

activities. Participants in the distribution channel engage in very basic

activities that provide time, place, and possession utilities to customers.

Utility is an economic term for the value, or want-satisfying ability that is

added to goods or services by organizations because the products are


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made more useful or accessible to consumers. These utilities are

economic values that translate directly into customer satisfaction. They

are essential to the overall economic role of marketing.

The Utilities created by Intermediaries are:-

A. FORM UTILITY

1. Form Utility consists of taking raw materials and

changing their form so that they become useful

products.

2. It is performed by producers; the other forms of utility

(time, place, possession, and information) are

performed by marketers.

B. TIME UTILITY—Intermediaries, such as retailers, add Time

Utility to products by making them available when they are

needed.

C. PLACE UTILITY—Intermediaries add Place Utility to products

by having them where people want them.

D. POSSESSION UTILITY—Intermediaries add Possession Utility

by doing whatever is necessary to transfer ownership from

one party to another, including providing credit.

1. Activities include delivery, installation, guarantees, and

follow-up service.

2. For those who don’t want to own goods, possession

utility makes it possible for them to use goods through

renting.


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E. INFORMATION UTILITY—Intermediaries add Information

Utility by opening two-way flows of information between

participants.

F. SERVICE UTILITY.

1. Intermediaries add Service Utility by providing fast,

friendly service during and after the sale and teaching

customers how to best use products.

2. Service utility is fast becoming the most important

utility for retailers.

In addition to the above the channel members perform the following

functions:

Functions of exchange

Buying Bulk breaking Negotiation Promotion

Functions of physical supply

Storage Materials handling Transportation

Facilitating functions

Financing Risk taking Standardizing and grading Market information

These are explained in detail as:

Cost Savings in Specialization – Members of the distribution

channel are specialists in what they do and can often perform tasks


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better and at lower cost than companies who do not have

distribution experience. Marketers attempting to handle too many

aspects of distribution may end up exhausting company resources

as they learn how to distribute, resulting in the company being “a

jack of all trades but master of none.”

Reduce Exchange Time – Not only are channel members able to

reduce distribution costs by being experienced at what they do,

they often perform their job more rapidly resulting in faster

product delivery.

Customers Want to Conveniently Shop for Variety –Resellers within

the channel of distribution serve two very important needs: 1) they

give customers the products they want by purchasing from many

suppliers (termed accumulating and assortment services), and 2)

they make it convenient to purchase by making products available

in single location.

Resellers Sell Smaller Quantities – Not only do resellers allow

customers to purchase products from a variety of suppliers, they

also allow customers to purchase in quantities that work for

them. Suppliers though like to ship products they produce in large

quantities since this is more cost effective than shipping smaller

amounts.

Create Sales – Resellers are at the front line when it comes to

creating demand for the marketer’s product. In some cases

resellers perform an active selling role using persuasive techniques

to encourage customers to purchase a marketer’s product. In other


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cases they encourage sales of the product through their own

advertising efforts and using other promotional means such as

special product displays.

Offer Financial Support – Resellers often provide programs that

enable customers to more easily purchase products by offering

financial programs that ease payment requirements. These

programs include allowing customers to: purchase on credit;

purchase using a payment plan; delay the start of payments; and

allowing trade-in or exchange options.

Provide Information – Companies utilizing resellers for selling their

products depend on distributors to provide information that can

help improve the product. High-level intermediaries may offer

their suppliers real-time access to sales data including information

showing how products are selling by such characteristics as

geographic location, type of customer, and product location (e.g.,

where located within a store, where found on a website). If high-

level information is not available, marketers can often count on

resellers to provide feedback as to how customers are responding

to products. This feedback can occur either through surveys or

interviews with reseller’s employees or by requesting the reseller

allow the marketer to survey customers.

Keeping in view the importance of distribution channels, planning them

requires a creative, well executed strategy. A well planned marketing


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channel can become a competitive advantage and can enhance its ability

to compete in domestic as well as in international markets. Channel

strategy is concerned with the overall process of planning, setting up and

managing the operations of selected firms that are responsible for

achieving the distribution objectives of the product or service.

In developing a channel strategy, channel decision makers should

concentrate on relationships with their channel partners as well as

requirements of the target markets. Channel strategy that focuses on

building long term relationship with the channel partners is likely to lead

to a firm competitive advantage for the company. Such an advantage has

long term viability since building the relationship is a long process and is

not a strategy that can be copied easily by the competitors. Strong

channel relationships can lead to better channel planning, as channel

partners are more likely to collaborate on strategic issues and

implementation of strategies.

The focus of this study is Distribution in FMCG Sector which is considered

as one of the fastest growing industries. FMCG is the fourth largest sector

in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG

sector generates 5% of total factory employment in the country and is

creating employment for three million people, especially in small towns

and rural India.

FMCG companies maintain intense distribution network. Companies

spend a large portion of their budget on maintaining distribution

networks.


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Mechanics of Distribution Channels of FMCG Sector

The supply chain of products in the FMCG market in India is one of the

longest supply chains an industry could really have. There are as many as

5 levels of intermediaries involved in the entire supply chain through

which a product passes before reaching the end consumer. What has

been observed is that even though some of these FMCG companies are

big multinationals and domestic face a major challenge of making their

products available in the market in the right quantities and in the right

time. This is simply because these companies don’t really have a wide

network of sales agents and other force which is required and is ideal for

catering their products to the markets. This aspect is taken over by

distributors, wholesalers and retailer whose margins on these products

actually double the price of these products when a final consumer buys it.

The margins kept by these intermediaries range from 2% to 5%.The

products in this industry are transported from manufacturing units via

C & F agencies or warehouse to distributors who further sell the same to

wholesalers or stockiest who finally sell it to the retailers in the market.

These products are transported either via roadways or railways within the

domestic markets and normally don’t take more than a week to reach the

retailers. FMCG products are normally a high volume ball game and

products have to essentially be available in the market at all given points

of time and at all given points of purchase and therefore the distribution

activities are highly volatile and dynamic. The supply of products takes

place virtually on a daily basis in fixed quotas or otherwise, to retailers as

per their requisitions and the anticipation of demand and the

performance of products in the recent past. All such criteria are taken into


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consideration before the quantum of products being dispatched to the

next level of intermediary. Since it’s a volume game, manufacturers make

all possible efforts to boost sales and promote their distributors to earn

more and more orders from the retailers and wholesalers. A close check is

maintained on the flow of the products on a daily, weekly, fortnightly and

monthly basis to determine the trend in the business and flow of products

and consumption. This activity also helps to find out drawbacks of the

distribution system, if any, and rectify them within time.


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Industry Profile

FMCG Overview & Outlook

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged

Goods (CPG), is products that have a quick turnover and relatively low

cost. Though the absolute profit made on FMCG products is relatively

small, they generally sell in large numbers and so the cumulative profit on

such products can be large. Items in this category include all consumables

people buy at regular intervals. Examples of FMCG generally include a

wide range of frequently purchased consumer products such as toiletries,

soap, cosmetics, teeth cleaning products, shaving products and

detergents, as well as other non-durables such as glassware, batteries,

paper products and plastic goods. FMCG may also include

pharmaceuticals, consumer electronics, packaged food products and

drinks, although these are often categorized separately. These items are

meant for daily of frequent consumption and have a high return.

A major portion of the monthly budget of each household is reserved for

FMCG products. The volume of money circulated in the economy against

FMCG products is very high, as the number of products the consumer use

is very high. Competition in the FMCG sector is very high resulting in high

pressure on margins.

FMCG companies maintain intense distribution network. Companies

spend a large portion of their budget on maintaining distribution

networks. New entrants who wish to bring their products in the national

level need to invest huge sums of money on promoting brands.


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Manufacturing can be outsourced. A recent phenomenon in the sector

was entry of multinationals and cheaper imports. Also the market is more

pressurized with presence of local players in rural areas and state brands.

FMCG is the fourth largest sector in the Indian Economy with a total

market size of Rs. 60,000 crores. FMCG sector generates 5% of total

factory employment in the country and is creating employment for three

million people, especially in small towns and rural India.

Characteristics of FMCG in India

Branding: Creating strong brands is important for FMCG companies

and they devote considerable money and effort in developing

bands. With differentiation on functional attributes being difficult

to achieve in this competitive market, branding results in consumer

loyalty and sales growth.

Distribution Network: Given the fragmented nature of the Indian

retailing industry and the problems of infrastructure, FMCG

companies need to develop extensive distribution networks to

achieve a high level of penetration in both the urban and rural

markets. Once they are able to create a strong distribution

network, it gives them significant advantages over their

competitors.

Contract Manufacturing: As FMCG companies concentrate on

brand building, product development and creating distribution

networks, they are at the same time outsourcing their production

requirements to third party manufacturers. Moreover, with several

items reserved for the small scale industry and with these SSI units


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enjoying tax incentives, the contract manufacturing route has

grown in importance and popularity.

Large Unorganized Sector: The unorganized sector has a presence in

most product categories of the FMCG sector. Small companies from this

sector have used their locational advantages and regional presence to

reach out to remote areas where large consumer products have only

Analysis of FMCG Sector

Strengths:

1. Low operational costs

2. Presence of established distribution networks in both urban and rural

areas.

3. Presence of well-known brands in FMCG sector.

Weaknesses:

1. Lower scope of investing in technology and achieving economies of

scale, especially in small sectors

2. Low exports levels

3. “Me-too” products, which illegally mimic the labels of the established

brands. These products narrow the scope of FMCG products in rural and

semi-urban market.

Opportunities:

1. Untapped rural market

2. Rising income


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Threats:

1. Removal of import restrictions resulting in replacing of domestic brands

2. Slowdown in rural demand

3. Tax and regulatory structure

Long Term Outlook

The Indian FMCG sector with a market size of US$13.1 billion is the fourth

largest sector in the economy. A well-established distribution network,

intense competition between the organized and unorganized segments

characterizes the sector. FMCG Sector is expected to grow by over 60% by

2010. That will translate into an annual growth of 10% over a 5-year

period. It has been estimated that FMCG sector will rise from around Rs

56,500 crores in 2005 to Rs 92,100 crores in 2010.

With the presence of 12.2% of the world population in the villages of

India, the Indian rural FMCG market is something no one can overlook.

Increased focus on farm sector will boost rural incomes, hence providing

better growth prospects to the FMCG companies. Better infrastructure

facilities will improve their supply chain. FMCG sector is also likely to

benefit from growing demand in the market. Because of the low per

capita consumption for almost all the products in the country, FMCG

companies have immense possibilities for growth. And if the companies

are able to change the mindset of the consumers, i.e. if they are able to

take the consumers to branded products and offer new generation

products, they would be able to generate higher growth in the near

future. It is expected that the rural income will rise in 2007, boosting

purchasing power in the countryside.


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However, the demand in urban areas would be the key growth

driver over the long term. Also, increase in the urban population, along

with increase in income levels and the availability of new categories,

would help the urban areas maintain their position in terms of

consumption. At present, urban India accounts for 66% of total FMCG

consumption, with rural India accounting for the remaining 34%.

However, rural India accounts for more than 40% consumption in major

FMCG categories such as personal care, fabric care, and hot beverages. In

urban areas, home and personal care category, including skin care,

household care and feminine hygiene, will keep growing at relatively

attractive rates. Within the foods segment, it is estimated that processed

foods, bakery, and dairy are long-term growth categories in both rural and

urban areas.

The following factors make India a competitive player in FMCG sector:

Availability of raw materials: Because of the diverse agro-climatic

conditions in India, there is a large raw material base suitable for

food processing industries. India is the largest producer of livestock,

milk, sugarcane, coconut, spices and cashew and is the second

largest producer of rice, wheat and fruits &vegetables. India also

produces caustic soda and soda ash, which are required for the

production of soaps and detergents. The availability of these raw

materials gives India the location advantage.

Low cost labour gives India a competitive advantage. India’s labour

cost is amongst the lowest in the world, after China & Indonesia.


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Low labour costs give the advantage of low cost of production.

Many MNC’s have established their plants in India to outsource for

domestic and export markets.

Presence across value chain: Indian companies have their presence

across the value chain of FMCG sector, right from the supply of raw

materials to packaged goods in the food-processing sector. This

brings India a more cost competitive advantage.

A major sector of FMCG consists of the food processing industry which is

one of the key drivers of the economy and is the focus of this project.

Introducing India’s Food Industry

The food industry is the complex, global collective of diverse businesses

that together supply much of the food energy consumed by the world

population.

The food processing industry is one of the largest industries in India. It is

ranked fifth in terms of production, consumption, export and expected

growth. Food Processing Industry is widely recognized as a 'sunrise

industry' in India having huge potential for uplifting agricultural economy,

creation of large scale processed food manufacturing and food chain

facilities, and the resultant generation of employment and export

earnings. India has enormous growth potential from its current status of

being the world's second largest food producer to be the world's number

on producer. Food Processing Industry is of enormous significance for

India's development because of the vital linkages and synergies that it

promotes between the two pillars of the economy, namely Industry and

Agriculture. Food processing covers a spectrum of products from sub-


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sector comprising agriculture, horticulture, Plantation, animal husbandry

and fisheries. Essentially, the food industry involves the commercial

movement of food from field to fork. While India has an abundant supply

of food, the food processing industry is still nascent: only two per cent of

fruit and vegetables; and 15 per cent of milk produced are processed.

Despite, of this the processed food industry ranks fifth in size in the

country, representing 6.3 per cent of GDP. It accounts for 13 per cent of

the country’s exports and 6 per cent of total industrial investment. The

industry size is estimated at US$ 70 billion, including US$ 22 billion of

value added products. This sector has been attracting FDI across different

categories.

With the overwhelming success of the Green and White Revolution, India

is now fervently poised for the Food Revolution that will ensure

agricultural diversification and large investments in food processing.

The entries of multinationals, aggressive rise of commodity branding and

low cost of technology are changing the economics of the Indian food

industry. The rise of aggressive regional players making forays into

categories where entry barriers are low and a boom in Indian Fast Moving

Consumer Goods (FMCG) markets and the rising need for these products

are the key reasons for this growth in food business.

Within food processing industry comes another sub sector i.e., Spices.

Indian Spice Market

India is famous for its spices that are widely used in industries like

pharmaceutical, neutraceuticals, perfumery, toiletry and cosmetics. India

is one of the major suppliers of pepper to a large number of countries.


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Growth in Spice Trade

The Indian spice market has shown remarkable growth in spice and

culinary herbs exports. Indian spices manufacturers are making

substantial efforts to improve the quality of spices backed up by

technological advancement in order to tap the international market.

Advanced technologies such as carbon dioxide extraction, cryogrinding,

encapsulation of spice oil is being undertaken to ensure high quality of

spices and their derivatives.

The country is providing value added products and thus achieved repute

in the international community. With a focus on strong R&D, the Indian

Manufacturers are developing new products, implementing organic

method of production for providing organic spices and herbs, which

command a 10-30% premium.

Spice Industry Overview

Spice industry has been witnessing phenomenal growth rates both in the

international and domestic sector. The growth in this sector can be

attributed to the change in the lifestyle patterns of the consumers all over

the world. The shift in the consumption trend toward natural products

has also contributed to the increased global demand of spices and

culinary herbs. Spice and derivatives market is booming because these

products find applications in a number of industries including

pharmaceutical, medicine, beverages, food processing, personal hygiene

products to name a few.

Indian Industry Overview

India has traditionally been known for its spice and culinary herb

production. It is one of the largest spice producing and consuming


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country. Its strategic location, climatic conditions, advanced production

processes and availability of cheap labour makes it advantageous for the

producers to ensure large scale production of quality spices and herbs.

India's Share in the Global Spice Market

The Indian spice market is booming with a substantial increase in exports

over the past few years. India accounts for nearly 45% and 30% in terms

of volume and value in the world spice trade. The booming global spice

market also poses good opportunities for the Indian spice industry to

provide quality spices at competitive prices. India faces stiff competition

from China, Malaysia and Pakistan in terms of pricing of the products.

Manufacturers should therefore ensure consistency in supply, product

quality, pricing and marketing strategy to increase the share in exports.


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Company Profile

Kanwal Foods and Spices (I) Pvt. Ltd.

Kanwal Foods and Spices (I) Pvt. Ltd. is ISO 9001:2000,UKAS and DAS

certified also authorized for grinding and processing of spices under

Agmark, with a group turnover of Rs.50 Crores (2009-10). With a

range of over 77 products and having won many awards at the

national level including the National Award for Quality Excellence,

Gem of India Award, Rashtriya Gaurav Award, Udoyog Patria award

besides others, it is one of the leaders in the FMCG sector in the

subcontinent, committed to provide quality products to its consumers.

Kanwal Foods and Spices (I) Pvt. Ltd. processes and packages its hygienic

and quality controlled products through its state-of-the-art industrial

units, located in various parts of the country, including the national capital

of India, Delhi. The registered office of the company is located at

Anantnag and corporate office is located in Delhi.

The company provides spices for the domestic markets under the

brand name “Kanwal” and “Alamin” in the international market.

The company is registered with the Spices Board, GOI and Indian

Spices Exporters Forum and exports its quality products to Saudi Arabia,

Baharain, Kuwait, Oman, Dubai etc. The supply chain network consisting

customer, retailer, distributor, manufacturer and supplier is closely linked

through an efficient flows of information and finance to ensure smooth

functionality.

Kanwal Foods and Spices (I) Pvt. Ltd. has a research and development

wing which would provide services vis-à-vis aiding research and

development, market analysis, analysis of trends and currents in various


25

sectors of the local market, research and analysis into the horticulture,

floriculture as also the broader contours of the agricultural sector. The

research and analysis wing of Kanwal Foods and Spices is aiming to avail

services of some of the most prestigious and credible inspection, testing

and certification institutes. The team of professionals engaged with the

R&D Division of Kanwal Foods and Spices equipped with fully-automatic

state-of-the-art paraphernalia has a team of professionals working with it.

The Company provides direct The company aims to expand its

product base and has setup a state-of-the-art packaged drinking water

processing and packaging plant, which is at par with the best in South

Asia. The packaged drinking water is sold under the brand name “Treish”

(Drinking Water). Treish is an outcome of dedicated and concerted 5-year-

long R&D with involvement of leading names in the “water world” across

the globe, turned out to be an instant success, captivating the markets in

Kashmir and drawing great attention from the national and international

markets. Treish is BIS (Bureau of Indian Standards) certified and its

quality and composition are almost at par with the world-leading brands

Evion and Volvic. The plant is epoxy-coated and has fully automatic

machines for processing and packaging. The R&D team of the plant is

working on the production of some soft drinks which will hit production

soon.

employment to around 700 people and indirect employment to more

than 5000 people. This human resource base is also an efficient chain for

dissemination and collection of information and customer inputs. The

distributor chain of the company is an efficient medium for introduction


26

of new products. The sales and marketing wing of the company is well-

networked with separate sales and marketing divisions which work in

tandem over calibrated information webs. The marketing and sales staff

personnel are equipped with mobile paraphernalia to stay in touch while

they are out in the field. The sales and marketing personnel collect

information from the markets regarding the sales of own and other

company products, which is pooled into a database that helps the

company stay up-to-date on market trends and customer satisfaction. The

quality control cell is fully accessible to the marketing field personnel and

any problems faced by them in the market vis-à-vis the products are

processed by the cell within the shortest possible time. The accounts

section along with a fully-equipped inventory section keep track of cash

and product inflows and outflows, enabling the greatest utilization of

resources and proper tracking of assets.

The company consists of the following Divisions / SBU’s:

National Masala Mills -J&K

National Masala Export Division (I) - J&K

National Masala Mills –Delhi

National Masala Export Division (II)-Bangalore

Kanwal Agro Food Division- J&K

Safa Waters Pvt. Ltd. - J&K (Treish)

Kanwal Spices Pvt. Ltd. - J&K

Asia Tea Company- J&K

Al-Sehah Enterprises- J&K


27

The company has been catering to the local market for the past 32 years

and has earned the sole trust of the consumers. Today the brand name

itself, “Kanwal”, is synonymous with quality, purity and aroma.


28

NATIONAL MASALA MILLS-J&K

National Masala Mills started as a water mill on the banks of river jehlum

catering to the local market with the motto to provide ‘honest spice’ to

people cherished local aroma to add colors and taste to the fabled

kashmiri cuisine.

National Masala Mills had grown into a into an Industry with more than

35 crores (about 7 million US dollars) annual turnover with more than

80% market share in Jammu and Kashmir, providing direct employment to

200 employees and indirect employment to more than 1500 families.

National Masala Mills has also export divisions in the state of Jammu and

Kashmir, Delhi, as well as in Bangalore.

Kanwal agro food division-J&k

Kanwal Foods and Spices Pvt. Ltd. Plays a significant supportive role in

diversification and commercialization of agriculture through fruit and

vegetable processing, improving value addition in the agricultural

production of Jammu and Kashmir, helps in generating employment

including rural employment, income and production of agro food

products for export.


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Safa waters Pvt. Ltd.-j&K (TREISH)

TREISH is a Kashmiri word meaning “Drinking Water”. On Monday, 17

July, 2006; SAFA WATERS PVT. LTD…… the branch or division of KANWAL

FOODS AND SPICES PVT. LTD. Inaugurated “TREISH” at Anantnag

(ISLAMABAD) Kashmir.

TREISH mineral water is processed from Kashmir valley to provide purest

bottled drinking water. It can become a universal call to quench one’s

thrist.

TREISH is glaciated water from river “LIDDER” used to bottle TREISH is

believed to be among the best waters available in Kashmir.

The company aims to expand its product base and has setup a

state-of-the-art packaged drinking water processing and packaging plant,

which is at par with the best in South Asia. The packaged drinking water is

sold under the brand name “Treish” (Drinking Water). Treish is an

outcome of dedicated and concerted 5-year-long R&D with involvement

of leading names in the “water world” across the globe, turned out to be

an instant success, captivating the markets in Kashmir and drawing great

attention from the national and international markets. Treish is BIS

(Bureau of Indian Standards) certified and its quality and composition are

almost at par with the world-leading brands Evion and Volvic. The plant is

epoxy-coated and has fully automatic machines for processing and

packaging. The R&D team of the plant is working on the production of

some soft drinks which will hit production soon.


30

Kanwal Spices Pvt. Ltd.-J&K

Kanwal Foods and Spices (I) Pvt. Ltd. processes and packages its hygienic

and quality controlled products through its state-of-the-art industrial

units, located in various parts of the country, including the national capital

of India, Delhi. The registered office of the company is located at

Anantnag and corporate office is located in Delhi.

The company provides spices for the domestic markets under the

brand name “Kanwal” and “Alamin” in the international market.

The company is registered with the Spices Board, GOI and Indian

Spices Exporters Forum and exports its quality products to Saudi Arabia,

Bahrain, Kuwait, Oman, Dubai etc. The supply chain network consisting

customer, retailer, distributor, manufacturer and supplier is closely linked

through an efficient flows of information and finance to ensure smooth

functionality.

Asia Tea Company Pvt. Ltd.-J&K

The culture of kashmir is a diverse blend and highly influenced by

Northern South Asian as well as Central Asian culture. Along with with

scenic beauty Kashmir is famous and used to its ‘NOON CHAI’ (salted tea).

Kanwal Foods and Spices are saturating the market with the top most

quality of tea on top of that Kanwal is known for its ‘Kehwah Masala’.


31

Kanwal Products

Indian Spice Powder & Blended Spice Powder.

Ready Mixes.

Indian Whole Spices.

Kashmiri Honey.

Kashmir Saffron.

Kashmiri Traditional Spice Mix.

Jams & Murabbas.

Vegetable Pickles.

Packaged Drinking Water (Treish)

Kehwa Masala.

Bombay Biryani.

Shahi Kheer.

Adrak (ginger) Powder.

Black Cardamom Powder.

Jeera (Cumin) Powder.

Kali Mirchi (Black Pepper).

Kasoori Methi (Fenugreek Leaf).

Kesar (Saffron).

Luhsun (garlic) Powder.

Cloves Powder.

Shahi Korma.

Daniya Powder.

Chilies Powder.


32

Turmeric Powder.

Meat Masala.

Garam Masala. Etc

Online Stores

Kanwal Foods and Spices are about to launch online stores which

would help in:

Incredible convenience

Price Comparison

Infinite Choice

Easy Access to Consumer reviews

Low Pressure Sales

Home Delivery

Easy and Obvious Buying Process

Constant Feedback and Status Updates.

24*7 Shopping Accessibility

Time Saving

Consistent prices


33

Theoretical Background of the Study

The topic Retailers satisfaction towards kanwal Foods and Spices was

given to me, to analyze how much the retailers were satisfied towards

kanwal spices for doing such survey I was given a questionnaire related to

this topic. I distributed this questionnaire among the retailers of South

Kashmir especially for the district Anantnag. Then I collected data, I

analyzed how much retailers were satisfied towards this brand.

After collecting the data I analyzed that kanwal was in a much better

position than others, because of following reasons:

BECAUSE OF:-

1. PROMPT DELIVERY.

2. BEST MATERIAL USED IN PRODUCTS.

3. POWER & IMAGE OF BRAND.

4. BETTER ADVERTISING.

5. BETTER DISTRIBUTION NETWORK.

6. QUALITY PRODUCTS.

7. COVERAGE OF MAXIMUM MARKET SHARE.

8. INVOLVEMENT OF MARKETING PERSONALS.

9. BETTER STRATEGIES AND PLANNING BY TOP MANAGEMENT.

10. CONSTANT REVIEW OF MARKET.

11.SATISICTION GOODWILL.


34

The above were some of the reasons why Kanwal is at the top & other brands are at the bottom.

There are some brands which are giving tough competition to this brand like:

Catch

BMC

Bharat

Shalimar

And other local brands like:

Rehmat

Mehak

Kongpoosh

Welcome

These above brands are giving tough competition to Kanwal because of following reasons:

BECAUSE OF:-

1. LOW PRICE.

2. DELIVERY AT DOOR STEPS.

3. COMPANY’S OFFERING INCENTIVES.

4. MUCH HIGHER MARGIN THAN KANWAL.

5. NO SHORTAGE IN PRODUCTS.

6. SAME PRICES EVERYWERE AMONG DISTRIBUTORS.

7. LIMITED DISTRIBUTION.

8. ENTERTAINMENT OR TAKING BACK OF EXPIRED PRODUCTS.


35

Now let’s move towards the other side of this topic i.e;

weakness of Kanwal Foods and Spices. This brand is not having too many

weaknesses as compared to its competitors that is the reason why kanwal

is at the top & the remaining are at the bottom. The following are the

weaknesses of kanwal spices.


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WEAKNESSES OF KANWAL SPICES

Kanwal is not focusing on its competitors.

Kanwal has largest number of distributors resulting in

different rates to retailers.

Less focus on rural people resulting in loss of major population.

Lack of target schemes results in showing way to competitors.

Lack of doing any innovation in present business cycle.

Lack of regular incentives to retailers.

Lack of marginal safety in many products to retailers.

Shortage in supply chain of many products to hub-retailers.

Lack of advertisement schemes and products like Boards, Banners,

Calendars, Wall-clocks, Bags and other gifts to retailers.


37

OPPORTUNITIES

Giving more & more target schemes will be helpful for the company

to increase sales.

Online stores can boast the business and capture major portion of

market.

Giving advertisement material like clocks, Banners, wallpapers etc

will be helpful to company in gaining retailers satisfaction.

Arrangement of a vehicle which will go to retailers to analyze their

problems.

Elimination of rate differences created by distributors.

Doing regular innovations in the present business cycle.

Quality should be maintained and summed up for the rest of the

business cycle.

General meetings with whole-sellers and retailers should be

organized occasionally by the company in order to know the market

needs and demand to capture the major portion of market.


38

Objectives of the Study

The first objective of this study is to check & analyze how far the

South Kashmir retailers are satisfied with Kanwal Foods and Spices.

The second objective of this study is to point out queries of South

Kashmir retailers.

The third objective of this study is to gain the skills of marketing

management.

To help improve channel member-company relations by measuring

their attitudes and perception toward the company's’ products,

policies and procedures.

To provide broad guidelines and suggestions to the company for

the improvement of channel member-company relationship and

their satisfaction.


39

Scope /Benefits of the study

The information contained in the report can be used to target areas for

improvement as well as highlight areas of strength. By responding to

retailers issues and building channel member loyalty, the company will

ultimately help its own sales initiatives.


40

Research Methodology

The present study is an endeavor to study the satisfaction level of the

channel members of KANWAL FOODS & SPICES. To commensurate it, the

study is mostly based on primary data.

The research approach is Explanatory in nature and focuses on the

objectives stated.

Further the study is confined to the Kashmir province of J&K state only

and in order to carry out the study in a systematic and convenient way

the area under study was taken the district of Anantnag.

Sample Features

The units of study for this project are the retailers of Kanwal Foods &

Spices. The technique of sampling used is convenient sampling.

Data Collection

Primary data: The project report mainly comprises of data collected from

primary sources through questionnaires and interviews.

Secondary Data: In addition to the primary sources data was also

collected from the following sources:

Company Annual reports

Brochures

Leaflets

Internet


41

Questionnaire Design and Development

The research and information collecting instruments were non-disguised

structured questionnaires comprising of 15 questions of the following

types:

I) Closed –End Questions

Dichotomous

Multiple Choice

Scaled-Response Questions (Liker Scale)

II) Open –Ended Questions

The questions were developed in a common phrasing, keeping the

following considerations in mind:

Convenient and least bother-some to the respondents.

The questionnaires used are shown in Appendix-I

Data Collection

Respondent were given a questionnaire and the interviewer noted down

the responses after giving the information about the purpose of the study

and instruction about the questions.


42

Methodological Assumptions and Limitations

Assumptions

. Data was collected from the channel members by using both the

questionnaire method and the observation method.

. It’s hoped that the sample size portrays the true picture.

LIMITATIONS

. Due to time and resource constraints the sample size is limited and

probably not enough.

. The study is limited to the Kashmir province of J&K state only.

. The data gathered may be biased in favor of the respondents.


43

Summary of Findings

To get the general overview of the retailer satisfaction, Scheduled Questionnaire was

formulated with close ended questions. The field work was started from 1st of June 2012 till

15th of July in four district of Anantnag. The Questionnaire comprise of 15 questions targeting

the issues on retailer satisfaction from delivery of the products to the special policy initiative

of the Kanwal product promotion. The sample size of the study was 100 retailers, all the

districts were given due share according to the approximate population proportionately.

Analysis of the data so collected with brief description is given below:

1. Delivery of the Product

75 percent of the retailer says getting products at the doorstep as against 25 percent getting themselves. It appears there is not a uniform distribution channel mechanism prevailing in distribution.

75%

25%


44

2. Incentives from the Company

Only 20 percent of the respondents say we are offered incentives from the company whereas

80 percent don’t receive any incentives.

3. Profit Margin offered by the company

55 percent are satisfied with the margin policy of the company, 23 percent say neutral and 22

percent are dissatisfied.

20%

80%

satisfied 55 55%

nuetral 23 23%

not satisfied 22 22%

satisfied

nuetral

not satisfied


45

4. Satisfaction of supply order to the company or the distributor

62 percent feel satisfied as against 27 feel somewhat satisfied while as 11 are not satisfied.

5. Company follow up on marketing of products

77 percent are satisfied with the company follow up while as 23 percent are dissatisfied.

62%

11%

27%

23%

77%


46

6. Shortage in supply distribution

61 are fully satisfied with the supply distribution, 32 percent feel shortage few times, 3 percent many times, 2 percent feel most of the times and 2 percent always.

7. Most selling brands in the market by the retailer

67 percent kanwal, 33 percent others.

61%

32%

3% 2% 2%

kanwal

67%

Others33%

kanwal

Others


47

8. Quality comparison of kanwal and Others

Kanwal is brand equity in the market. 68 percent say kanwal is better than others, 12 percent say others are better than kanwal and 20 percent say there is no difference.

9. Satisfaction on Work execution of the company(New concepts like right

execution daily)

59 percent satisfied, 24 percent not satisfied and 17 percent no comments.

68%

12%

20%

Kanwal is better than others

others are better than kanwal

no diffrence

59%24%

17%


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10. Is RED helpful in enhancement of sale

74 percent say yes as against 14 percent say no and 12 percent give no comments

11. Company executive visits to retailer

35 percent regularly, 42 percent occasionally and the rest 23 percent never.

74%

14%

12%

35%

42%

23%


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12. Satisfied with the company sales executive

29 percent completely satisfied, 33 percent somewhat satisfied 38 percent say dissatisfied.

13. Satisfied with the distributor

53 percent completely satisfied, 37 percent somewhat satisfied and 10 percent are dissatisfied

Conclusion: It appears that kanwal spices are showing some positive response from the

retailer’s satisfaction leaving the exceptions of few. It’s continuously moving towards the

brand equity, however in-depth report to be submitted will incorporate suggestions as well as

others aspects related to the project under study.

53%37%

10%

satisfied

29%

not satisfi

ed38%

Somewhat satisfi

ed33%

satisfied

not satisfied

Somewhat satisfied


50

Conclusion

I have observed that majority of the retailers are dissatisfied due to

the aggressive pricing used by distributors. Some of the distributors

have been found in indulging in this malpractice.

Most of the distributors and the retailers are being visited on a

weekly basis. Some of the distributors and retailers are not being

visited by the sales executives at all and some are being visited on

monthly or fortnightly basis.

Most of the company sales and marketing executives lack the

necessary training, professionalism and responsiveness as

demanded by the nature of their jobs.

Almost all the retailers are satisfied with the payment schedule.

The packaging of Kanwal products is excellent and is par with other

leading national and global brands.

The products of the company has high price as compared to other

competing brands.

Majority of the retailers claim that they do not receive incentive.

The retailers want incentives and other benefits from the company.

There is a minimal company-retailer communication.

Retailers are not getting enough advertisement material like

billboards, signage etc.

There is no company policy for taking the expired products back,

mostly blended spices. Due to this reason retailers are not ordering


51

blended spices in larger quantity. There is also not much effort in

marketing the blended spices from the company.

The distribution zones for most of the distributors are not well

defined. This results in conflict between distributors over the areas

to be served.

The packaging of certain products is not durable enough, hence

results in frequent complaints.

The outer packaging of certain products leads to confusion as the

gram mage of the inner contents is not mentioned. This often ends

up in supplying the wrong consignment.

The high costs of carrying inventories are pushing up the costs of

the products of the company.

The retailers are the only persons which are in direct contact with end consumers so the company & company representatives need to make them happy. They can make them happy by giving target schemes, advertisement material and also by eliminating the rate differences. Due to lacking of such facilities & also due to the reasons mentioned above the retailers are a bit dissatisfied with the company. Company need to take immediate steps so that KANWAL can get maximum market share.


52

Recommendations and Suggestions

Majority of the Marketing and Sales Executives of the company

have not been trained to perform their professional duties well. As,

human resource is an invaluable asset of an organization, therefore,

training programs should be conducted for them to inculcate in

them the attitude and skills of marketing & sales.

The Company Sales executives should visit the retailers on weekly

basis. This will help the company in strengthening the co-retailer

relationship.

With the entry of new competitors, company is sure to be

challenged and as the market is dynamic, the company should give

more stress on Loyalty schemes etc, to attract and retain retailers,

which otherwise will be lured away by the competitors. Incentive

schemes like Cash discount on advance and on time payments

should be introduced and properly communicated to all the

Retailers.

The Company should concentrate on providing consistent supply to

the distributors and focus on strengthening the relationship with

them.

The company should add more suppliers to its supply chain to

prevent shortage of raw materials.


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The number of distributors should not be increased in the existing

areas.

As a larger section of the market is untapped & unexplored,

therefore, production should be increased to cater to the existing

markets and the potential markets. A mechanism should be

developed to make the sales team accountable for their Jobs.

A separate section for Order placement, Order processing & Order

delivery should be established.

A fulltime Grievance Redressal Cell should be formed to redress the

problems of the channel members. This cell should be headed by

the Marketing Manager.

To ensure success of new products launched, a fulltime Marketing

Research Cell should be formed that should be headed by the

Marketing Manager and assisted by Manager R&D.

To curb the malpractice of aggressive pricing by certain distributors,

it is recommended that a Task Force Team should be formed, and it

should be headed by a Director.

A distributor’s meet (get together) should be organized at least

once a year. Manager PR should be authorized to conduct the

function.

A major part of the advertisement budget for the every fiscal year

should be allocated to Billboards and Hoardings for the retailers.


54

A policy should be framed for taking expired products back from

the market to retain the business of retailers and maintain good

relations with them.

It is also recommended that a policy should be framed to divide

markets into specific areas/ zones of operations for the distributors

so that distributors don’t infiltrate into each other’s territory. This

will help in reducing the horizontal channel conflict.

For smooth inflow of raw materials, a purchase division should be

formed. The division should be headed by a fulltime Director

Purchases.

More warehouses should be maintained so as to avoid the delay of

consignments to the distributors. It is recommended that a

warehouse be maintained in the south Zone as soon as possible.

It is recommended that continuous feedback should be taken from

the channel members so as to ensure that they are being served in

the best way.

General meetings (get together) with whole-sellers and retailers

should be organized occasionally by the company in order to know

the market needs and demand to capture the major portion of

market


55

Annexure-1

A study of retailers satisfaction towards KANWAL spices

Questionnaire for Retailers Name : __________________________________ Adress : ____________________________ Location : __________________________________ Area _________________________________________ Contact No. :__________________________________

1. HOW THE PRODUCTS ARE DELIVERED TO YOU.

A. AT YOUR DOORSTEP. B. YOU GET BY YOURSELF

2. ARE YOU OFFERED INCENTIVES FROM THE COMPANY.

A. YES. B. NO

3. ARE YOU SATISFIED WITH THE MARGIN OFFERED BY THE COMPANY.

A. SATISFIED B. NEUTRAL C. DISSATISFIED

4. ARE YOU SATISFIED WITH THE FULLFILMENT OF YOUR ORDER BY THE

COMPANY/DISTRIBUTOR.

A. COMPLETELY SATISFIED B. SOME WHAT SATISFIED C. DISSATISFIED

5. ARE YOU SATISFIED WIT H THE COMPANY’S FOLLOWUP ON MARKETING

OF ITS PRODUCTS.

A. YES B. NO

6. DO YOU FACE ANY SHORTAGE IN SUPLLY OF THE PRODUCTS BY THE

COMPANY.

A. NOT AT ALL B. FEW TIMES C. MANY TIMES D. MOST OF THE TIME.

E. ALWAYS

7. WHICH ARE THE MOST SELLING 3 BRANDS OF SPICES IN YOUR OUTLET.


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1.---------------------------------2.----------------------------------3.-------------------------------------------

8. QUALITY COMPARISON OF KANWAL/ OTHERS

KANWAL IS BETTER THAN OTHERS B. OTHERS ARE BETTER THAN KANWAL. C. NO

DIFFERENCE

9. DO YOU ENCOURAGE AND ARE YOU SATISFIED WITH THE WORK

EXECUTION OF COMPANY PEOPLE REGARDING NEW CONCEPTS LIKE

RIGHT EXECUTION DAILY (RED)

A. YES B. NO C. NO COMENTS

10. IS RED HELPING YOU REGARDING THE ENHANSMENT OF SALES.

A. YES B. NO C. NO COMENTS

11. WHAT TYPE OF CLAIM DO YOU FEEL REMAINS ILL ATTENDED BY THE

COMPANY

12. HOW OFTEN COMPANY EXECUTIVE VISITS YOU.

A. REGULARLY B. OCCASIONALY C. NEVER

13. ARE YOU SATISFIED WITH THE WORKING OF COMPANY’S SALES

EXECUTIVE.


14. ARE YOU SATISFIED WITH THE DEALING OF THE DISTRIBUTOR.


15. DO YOU HAVE ANY SUGGESTION TO MAKE SOME IMPROVEMENTS IN

THE PRESENT DISTRIBUTION NETWORK OF THE COMPANY.


57

Bibliography

1. Principles of Marketing by Philip Kotler & Kelvin

Lane Keller, 12th Edition

2. Marketing, Planning & Strategy by Subhash C.

Jain, 6th Edition

3. Marketing Research by Naresh K. Malhotra, 4th

Edition

4. Marketing Research by Debashis Pati

5. Marketing Research by Donald S. Tull and Del I.

Hawkins 4th ed.,

Webliography

6. Internet websites:

a. Google.com

b. www.indianspices.com (Spice board of

India)

c. www.spice-trade.com

d. www.vuatkerala.org

e. www.naukrihub.com

f. www.mynaukri.

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Retailers satisfication towards kanwal spices

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