A Study on

MARKETING MIX STRATAGIES

With reference to VAMSADHARA PAPER MILLS LTD, MADAPAM

A Project Report Submitted to Andhra University in Partial Fulfillment Of The Requirement For The

Award Of the degree

BACHELOR OF BUSINESS MANAGEMENT

Submitted ByBAGADI CHANDRA MOHANA RAO

Regd. No: 20899015005

Under the guidance ofSri. V. MAHESH, MBA., (Ph.D.)

Assistant Professor

Gayatri College of Science and Management(Affiliated to Andhra University)

Accredited with B+ by NAAC and ISO 9001:2008 certifiedMunasabpeta, Srikakualm

2008 - 2011

CERTIFICATE

This is to certify that Mr. Bagadi Chandra Mohana Rao

Student of BBM, Gayatri College of Science And Management,

Munasabpeta, Srikakulam has undertaken his project on the topic “A

Study On Marketing Mix Strategies In Vamsadhara Paper Mills Ltd,

Madapam” is a bonafied work under my guidance.

(V.MAHESH)

Project Guide

DECLARATION

This project report titled “A Study on Marketing Mix

Stratagies In Vamsadhara Paper Mills Ltd, Madapam” submitted to

Andhra University in partial fulfillment of the requirements for the

award of the degree Bachelor of Business Management by me under

the guidance of Sri. V. Mahesh is my original work. The findings of

this report are based on the information collected by me during the

study, and it has not submitted to any other university for award of

any degree or diploma earlier.

Place Bagadi Chandra MohanaRaoDate:

ACKNOWLEDGEMENT

With the active support, assistance and timely guidance of my teachers,

company staff and well-wishers only, I would be able to do this project work. It

is my profound duty to acknowledge all those who render their valuable and

generous help in their own ways.

The project work has been carried out under the supervision and

guidance of Assistant Professor Sri. V. Mahesh, Head of the Department and

Faculty of Department of Management Studies, Gayatri College of Science and

Management, Munasabpeta, Srikakulam. I am highly indebted to him for his

unstinted cooperation in the preparation of this thesis. In spite of his pre-

occupations and engagements, he has spared his precious time, evinced keen

interest and meticulous care at every stage of my project work, I owe him much

more than I can render in words.

I wish to express my deep sense of gratitude and indebtedness to my

external guide Sri Nageswara Rao, Marketing Manager, Vamsadhra Paper Mills

Pvt. Limited, Madapam who took all the pains to make this report a meaningful

one. His able guidance, inspiration, encouragement and support helped me a lot

during the project work.

It is my duty to acknowledge my deep sense of gratitude to all the faculty

members of Department of Management Studies, Gayatri College for PG

Courses, Munasabpeta for encouragement and guidance through out my studies

in the college. And I also extend my sincere thanks to the Management of

Gurajada Educational Society to offer an opportunity to study BBM in their

esteemed institution.

I thank my friends and classmates who have generously extended their

help and support to enable me to carry out this project work.

Finally, I am extremely thankful to my father Sri Jogi Naidu, my mother

Smt. Vara Lakshmi, my Sister Smt. Roja Rani and Brother in Law Sri. Adi

Naryana for their co-operation, encouragement, and support enabled me to

devote my all energies to complete this work even at the cost of my domestic

responsibilities.

B.CHANDRAMOHANA RAO

CONTENTS

Pg.no

Chapter – I INTRODUCTION

1.1 Introduction of MARKING MIX STRATAGY

1.2 Need for the study

1.3 Objectives and Goals of the Study

1.4 Methodology

1.5 Limitations

Chapter - II

2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILE

Chapter – III

3.1 THEORITICAL FRAME WORK

Chapter – IV

4.1 DATA ANALYSIS percent INTERPRETATION

Chapter - V

5.1 Findings

5.2 Suggestions

5.3 Summary

5.4 Annexure

5.5 Bibliography

CHAPTERCHAPTER 11

INTRODUCTION

NEED FOR THE STUDTY

OBJECTIVES OF THE STUDY

SCOPE OF THE STUDY

METHODOLOGY

LIMITATIONS

INTRODUCTION

The beginning of modern paper industry in India is related to

Dr.William Carrey. The renewed Baptist missionary of semaphore.

He was the pioneer in erecting the first marketing mention. He

made the machine produced paper in 1832at sera pore. The place

where he started making hard made paper several years before

In 1867, the first commercial paper mill the royal paper mill

was established at Bally (near Calcutta). This took over Dr.carey’s

plant and machinery but in course of time it developed into a four-

machine mill with and machinery but in course of time it developed

into a four-machine mill with an output of about 5000 tons of paper

per annum this mill produced low-grade paper by using rags, jute

cutting and west paper as raw materials.

The first mills based on lengno cellulosic raw material. The

upper India coupler paper mill was established at luck now in 1879.

It commenced as production of paper in 1884. Both these mills used

mostly ‘MOONI’ AND “SABAI” grass as raw material to produce high-

grade white paper.

The Bengal paper mills Established in 1889, began working in

1691 and began working in 1891 at raniganj in Bengal. It began to

produce about 8,500 tons per annum.

On account of compulsory education in Europe and America

the demand for paper went up. The prices of paper shop up due to

this phenomena. Hence it become necessary to expand paper

manufacturing activates. This brought the opportunity to the door

steps of India to expand the paper industry. It receive a further

filling in 1881. When India Government announced as policy of

giving preference to hand mode goods for the purpose stores.

Further the introduction bamboo as suitable raw material for

pulp in proved a boon to the industry. Papermaking was further

developed based on this raw material. The is of bamboo’s a raw

material exceeded to 60 percent which came down to 40-53 percent

in 1983.In 1912 the titagarh paper mills adopted it equipment to the

bamboo technology on a limited scale they it became the pioneer

unit in this regard. However, the first paper mill to produce paper

wholly form bamboo was set up at naihati about 50 kms to the north

of Calcutta. Thus bamboo became the main storage of the paper

industry as raw material.

During the first world war (1914-18),the industry progressed

well on ac-count of heavy demand of paper in the country. The

subsequent years it suffered a server set back on two counts.

Keen foreign competition

General market recession

The India paper industry has to struggle for survival during this

period. In fact some from this ugly situation Government of India

levied as protective duty on imported paper through bamboo paper

industry act, 1952. This was particularly to provide shelter to the

indigenous bamboo based paper industry on the country. This step

proved to be necessary for the growth of the industry.

The project of this report in marketing mix and industrial

relation of vamashadhara paper mills ltd., madapam of srikakulam

district. The paper industry pays an important role in the progress of

nation. The creation of edit nature conduct of administration,

oxidation of tracks and industry, oil depend on paper, it also has an

important role to play in the planned development of any economy

and spread of education.

The Vamashadhra paper mills ltd., was established at

mandapam on the banks of river Vamsahdhara in srikakulam

district. A centrally declared backward area as am based industry in

the 1980 for manufacture of agro Kraft paper using paddy straw and

gunny as the main raw materials supported by wastes paper as

secondary raw material with a licensed capacity of 7500 tunes per

annum, with the assistance of state level financial institution and

equity participation from IDBI and ICIC.

The unit went into commercial production towards ends of the

January 1984-84 and went for an expansion cum balancing program

and completed the same and increased as capacity to 6600 tunes

per annum during the year 1985-86 and earned profits (Rs.2.09) the

unit started as production with flatling media and after expansion of

the plant.

They have been production floating media, swmivirgin (medium)

and high strength Kraft.

PADDY STRAW or rice straw is the main raw material

for the unit. The company has producing other materials like waste

gunny degases. West paper is importing from Singapore,

Netherlands, USA, Switzerland, Malaysia through the channel of

vizag. Chennai percent Mumbai etc, Vijayawada, Mumbai, Cuttack,

Calcutta etc., It is also purchasing packaging materials like Hessian

cloth. Reel cores, wooden flags and others.

Here the basic enterprise functions are personnel. Production,

finance. Commercial (purchase) and marketing coordination among

these different functions activities has been achieved successfully

as so far.

NEED FOR THE STUDY

Marketing mix is one of the key concepts In modern marketing

concept Accordant to NEILH.BORDON of the Harvard business

school. “The marketing mix refers to the appointment of efforts, the

combination, the designing and the integration of the elements of

marketing into a programme or mix which on the basis of an

appraisal of the market force will best achieve. The objectives of an

enterprise at a given time”

Marketing mix is a plant designed to analyses the marketing

problems as follows.

By utilizing the important forces in acting form the marketing

operations of enterprises.

By utilizing the important forces in acting form the marketing

operations of enterprises.

By adopting procedure and plies for an efficient marketing

program (distribution policies. Promotional papoose etc.),

marketing mix is a plan.

It is continuous process not ending here.

According actual meaning of marketing means “the place which is

having purchase percent selling of goods and services is called

marketing “It not limited to particular place, time etc.

The above importance of marketing mix plays vital role in

vamshadhra paper mills ltd. Also the demand and supply gap for

paper is high and the consumption pattern of paper in India is

growing continuously, paper mills need to improve their system to

cater the need of customers and industry, Hence I felt that there is a

need to study the existing marketing practices at “VAMSADHARA

PAPER MILLS LTD”

OBJECTIVESThe present study titled a study on marketing mix strategies

of Vamsadhara Paper Mills has undergone to realize following

objectives.

To study the overview of Paper Industry

To study the overview of Vamashadhara paper mills ltd.

To study the marketing mix activities i.e product, price,

place, and promotion practices at Vamashadhara paper

mills.

Suggest some measures to improve the performance of

the organization.

METHODOLOGY The study was exploratory in nature as the objectives was to

shed light regarding customer preferences as well as the level of

aware ness of the people on insurance company

Methodology is a systematic procedure of collecting

information in order to analyze and verify a phenomenon. The

collection of information is done from two principle sources. They

are as follows

1. Primary Data

2. Secondary Data

PRIMARY DATA:

The primary data are those, which is fresh and is generated

from the view and opinion of customers. The primary data may be

obtained by applying questionnaire method. The questionnaire

comprises of exploratory researches of 12 questions framed in the

contest. I felt questionnaire method is the best in collection of

primary information. In this survey I am collected information from

customers. It is the information collected directly without any

references. In this study it is gathered through interviews with

concerned officers and staff, either individually or collectively, sum

of the information has been verified or supplemented with personal

observation conducting personal interviews with the concerned

officers of marketing department of Vamsadhra Paper Mills .

SECONDARY DATA:

The secondary data was collected from already published

sources such as, pamphlets of annual reports internal sources

include shipments, sales results, and advertising, prior research

reports. The study is carried basing on the information and

documents provided by the organization and based on the

interaction with the various employees of the marketing department

records, reference from text books and journal relating to marketing

management. The data collection includes:

a) Collection of required data from annual premium records of

Vamsadhra Paper Mills .

b) Reference from text books and journals relating to marketing

management

Sampling and Sampling Technique

The conduct the study I have taken 50 dealers as Sample size.

I have selected the dealers from the dealers list of the company by

using simple random sampling Technique.

Data Analysis

I have analyzed the data which is gathered from structured

questionnaire by using simple statistical techniques like Tables and

Bar Diagrams. Later the data was interpreted with the opinions

gather from the Vamsadhara staff and dealers through formal

interviews.

Report Presentation

The present thesis has been prepared in 5 Chatpers. First

Chapter deals with Introduction to the topic, need for the study,

Objectives of the study, Methodology, and Limitations. Second

Chapter deals with the Industry profile and Company profile. Third

Chapter deals with the Theoritical frame work of the study, Fourth

deals with the data analysis and interpretation and Fifth Chapter

Deals with the finding, suggestions and summary.

LIMITATIONSThe present study titled a study on marketing mix strategies

of Vamsadhara Paper Mills having following limitations.

The scope in limited to Vamsadhara Paper Mills only it may

not applicable to other units.

One month time is not sufficient to take in depth study.

Hence, Time is main limiting factor to gather more information

for this study.

The company may not issue confidential information with

regard to key marketing and financial activities. Hence, it may

affect accuracy of the study.

As the paper distributors are very much time conscious and

very busy to spare a considerable time to study, they could

not provide sufficient information.

Being majority of company staff having low educational profile

to understand the research studies there may be a chance of

respondents’ bias.

CHAPTER -2 2.1 Industry profile

2.2 Company profile

INDUSTRIAL PROFILE

OVER VIEW OF THE PAPER INDUSTRY IN INDIA:

The paper and pulp industry has an important role to play in

the India economy. The overall paper consumption in India is about

5 million tons. The increasing demand for paper puts pressure on

supply of papermaking fibers, including efficient recovery of

recycled paper, use of non-wood raw materials and the need to

develop and expand sustainable use of wood. At the same time

competition in global pulp and paper markets is intensify in India

pulp and paper industry consist around 500 paper mills, mainly

small and medium sized companies with production capacities

ranging from less than 1,000 tpa to over 150,000 tpa, there is a

growing need for modernization and introduction of energy efficient

and clean technologies for enhancing competitiveness’ and

productivity. The paper manufacturing process has several stages

which is explained diagrammatically here under the entire paper

manufacturing process can be broadly classified into two district

operations-pulp making, is the heart of any integrated paper mill

and is the most energy and resource intensive operation, an

integrated paper unit’s product quality as well as yield is largely

dependent on the efficiency of its pulping operations.

GLOBAL PAPER INSUSTRY

Industry structure; the global industry is configured for volume

driven operations with district pulp manufactures and paper makers.

Europe and Canada dominate the pulping industry while north

America western Europe and parts of Asia dominate paper

manufacture in. The global paper consumption in FY 2008 was

approximately 825 mn tones. Writing percent Printing segment

accounted for 32 percent of the global paper consumption while

INDUSTRY were at 82 percent resulting production of 5.1 tpa in FY

2008, as per the Indian paper manufactures association, the Indian

paper industry is expected to report a 5-10 percent improvement in

production and sales during the coming years, this growing demand

is not expected to be met by a corresponding rise in capacity due to

high capital costs and environmental constraints.

As the domestic paper industry has low duty protection levels, the

domestic prices have been in line with international prices. This has

resulted in reduced import of paper, which is now mainly confined to

west paper pulp especially coated and specialty paper. Thus while

international pricing does impact domestic pricing thereby

impacting profitability. But the paper imports constitutes less than

10 percent of total paper percent paperboard supply.

RECENT SCENARIO percent OUTLOOK:

After a prolonged down cycle, the domestic paper industry to

firm up in the last year. At the same, at the some time in the past 6-

9 months has witnessed sharp rise in operating costs as inputs like

causes tic soda and chlorine have risen about 40 per cent over the

past year, while wood prices have risen about 40 per cent over the

past year, while wood prices have risen approximately 30 per cent

over the past 6-8 months.

STUDY AND GROWITH OF PAPER INDUSTRY

At the turn of current century, there were only for units in

operation whose combine annual out put was 20,000 tones,

attracted by high profits under the protective tariff umbrella, many

new paper mills were setup at the beginning of the first plan in 1950

the production crossed the one lakes ton mark. The output of paper

(excluding news print) recoded a study growth for the second plan

onwards and

reached 19.4 lakes tones in the 1990. Imports at 20,000 tones,

accounted for les than one percent of domestic consumption.

Year Paper percent board

Installed Production

company

News print production

1960-

61

4 3.4 0.4

1970-

71

9 7.5 0.4

1980-

81

11 11.0 0.3

1990-

91

30 20.7 2.7

There are now over 325 units with a total installed capacity of 33

lakes tones while production excluding newsprint is about 21 lakes

tones.

Capacity utilization however, came down from a high 99 percent in

19970 to 62 percent in 1990 or the installed capacity nearly 46

percent (15.17 lakes tones) is form 33 large integrated paper mills

(each with a capacity of 20,000 tones and more) while the balance

is accounted for by agro residue based and waste paper based small

mills.

SICKNESS IN SMAL PAPER UNITS

Form the very beginning the small units have suffered from

constraints. They did no have chemicals recovery plants. Did not

they provide for disposal of effluents. They had installed second

hand machinery imported form else where and they made use of

unconventional raw materials. As a result in small paper units found

it difficult to operate efficiency to maintain quality of paper or

produce at a low cost. At the same time the large paper units had

many technical advantages because of better equipment

accordingly, the small units have not been able to complete with

Large paper units and many of them fell sick. The sickness in the

small scale paper sector is due to

High cost of investment and low rate of realization

Highly competitive market

Continuous cost sectionals, but with stagnant price of paper

board.

Heavy interest burden towards financial instauration and

banks

Non-availability of materials, and increase in electricity and

water charges.

Non-availability of coal in the required quantity of quality.

Cluster of mills in particulars regions, resulting in problems of

procurement of limited raw materials in that region.

PRODUCT:

The most basic marketing mix tools “PRODUCT”, which stands

for the firms tangible offer to the market, including the product

quality, design, Features branding and packaging.

According to PHILIP KOTLER defines product as follows.

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

Acquisition use or consumption and that might satisfy a want or

need it includes physical objects, serious, persons, places,

organizations and ideas’

Products are destined for use by ultimate consumer or households

and in such form that they can be used without further commercial

processing. Industrial products are defined to be sold primarily for

use in producing other goods or rendering services.

CONSUMER GOODS CLASSIFICATION:

Consumers buy a vest number of goods we can classify these goods

on the basis of consumers shopping habits like.

Convenience goods:

Goods that are customer usually purchase frequently,

immediately and with the minimum on efforts in comparison and

buying examples include tobacco products, soaps, news paper and

drugs, etc.

Shopping goods:

Goods that are customer in the process of selection and

purchases characteristically compares on such bases as suitability,

quality, price and style, example include furniture, clothing and

major appliances, etc.,

Specialty Goods:

Goods with unique characteristics and for brand identifications

for which a significant group of buyers are habitually willing to make

a special purchasing effort.

Examples include specific brands and types of fancy, cars, stereos,

photographic equipments etc.

Unsought Goods:

Good that the consumer does not know about or knows about

but does not normally think of buying, new product, such as micro

ovens, food processors, are unsought goods until the consumer is

made aware of them through advertising digital digital player, LIC

percent encyclopedia.

INDUSTRIAL GOODS CLASSIFICATION:

Industrial goods can be classified in terms of how they enter

the production process and their relative coastlines like.

Material and parts:

Goods that enter the manufactures product completely. They fall

into two classes: raw materials and manufactured materials and

parts.

Raw materials:

Raw materials fall into two major classes; firm products (example

wheat, Lumber, crude, petroleum, iron ore etc.)firm product are

supplied by many producers, who turn them over to marketing

intermediaries. Who provide assembly grading, storage,

transpiration and selling services. Their commodity character results

in relatively little advertising and promotional activity with some

exceptions.

There are fewer and larger producers. Who often market them

directly to industrials users. Because the users depend on these

materials. Long-term supply contracts are common price and deliver

reliability ate the major factors influencing the selection of suppliers.

Manufacturing material and parts:

Manufactured material and parts ate exemplified by component

material (eg: iron, cement, wires and component part (eg: small

mothers, tires, casting.) component materials usually fabricated

further for example big iron is made into steel, and earn in woven

into cloth.

Component parts enter the finished product completely with no

further change in fore as when small motors. Are put into vacuum

cleaners and tires are put on automobiles. Most manufactured

materials and parts are sold directly to industrial user’s price and

services are the major marketing considerations and branding and

advertising tend to be less important.

Capital items:

Goods that ate enter the finished product partly, they include two

groups installation and accessory equipment.

Installations consist of building (eg: factories and offices) and fixed

equipment (eg: generators, dell presses computers, elevators)

installations ate major purchases they are usually brought directly

form.

The producer, with the typical sale preceded by long negotiation

period. The producers use a top notch sales force, which after

includes sales engineers.

Advertising is use but is much less important than personal selling.

Accessory equipment portable factor equipment and tools and office

equipment (eg: type writes, desks,). These types of equipments do

not become part of the finished product. They simply help in the

production process, al use middle men because the market is

geographically depressed. The buyers. Are numerous and the orders

are small quality, features price and service and major consideration

in vendor selection

The sales force tends to be more important than advertising

although the letter be use effectively.

Suppliers and services:

Items that do not enter the finished product at all suppliers are of

two kinds operating supplies (eg: lubricants, coal, typing, paper,

pencils etc.) and maintenance and repair items (eg: paint nails,

brooms etc.) suppliers are the equivalent of convenience goods in

the industrial field, as they are usually purchases with a minimum

effort on a straight rebury basis. They are normally marketed

through intermediaries because of the great number of customers,

their geographical and the low unit value of these goods. Business

services include maintenance and repair services (eg: window

cleaning, type rewriter repairs) and business advisory services.

PROFILE OF THE ORGANISATION:

VAMSHADHARA PAPER MILLS LIMITED

VAMSHADHARA PAPER MILLS LTD a well know and pioneers in

manufactures of paper (industry) in Andhra Pradesh, it is situated at

mandapam (village), Srikakulam (district).

The industry also producing KRAFT PAPER the mill was installed in

1983 at mandapam, srikakulam (dist), Andhra Pradesh with

production capacity 19600 metric tones.

Man power ------in present

Year 2009-10 1

Managing director 1

Executive (p percenta) 1

GM 6

DGM 5

M(ASST.M) 11

Senior drafts man 1

Offices 6

Fore men 7

Work men 65

Casuals 87

Total 197

ANNUAL TURNOVER:

The annula turnover of Vamshadhara paper mills during 2000 to 2009

Period Amount in crores

2000-2001 20,2396

2001-2002 20,7333

2002-2003 25,0524

2003-2004 25,2510

2004-2005 26,2671

2005-2006 56,6642

2006-2007 74,0039

2007-2008 29,9253

2008-2009 39,6523

ORGANISATION SPECIMEN:

It implies a formalized intentional structure of rates of positions.

Hence international structure means people working together must

fill certain. The peoples are asked to till should be internationally

designed to ensure that required activates are done and that

activates fit together so that people can work. Smoothly effectively

and efficiently in groups.

Organization set up in VAMSHADHARA paper mills is a fictional

departmentation headed by MD, who assisted by joining managing

director and executive director i.e grouping activities in accordance

with the functions. Here the basis enterprise functions are

personnel, production, finance, commercial (purchase) and

marketing co-ordination among these different fictional activities

has been achieved successfully so far.

MARKETTING DEPARMENTS

Sales is the major functional are in marketing in VAMSHADHARA

paper mills joint managing director is directly with sales. He takes

the assistance of sales officer on doing so.

HIS DUTIES INCLUDED:

He has to coordinate work of all departments

He has to study the market conditions to make necessary

changes sales officer in different geographical reigns assert in

this.

Controlling and supervising of various senctions in the

departments.

He has to increase the sales volume to the possible

AN OVER VIEW OF VAMSADHARA PAPER MILLS LIMITED

EVALUATION AND GROWTH:

The vamsadhara paper limited established at Mandapam on

the banks of river Vamasbhara in Srikakulam district a centrally

declared back ward area as a agro based industry in the year 1980

for manufacturing of kraft paper using ‘paddy straw on Gunny as

the main raw materials supported by waste paper as secondary raw

material with a licensed capacity of 7,500 tones per annual with

assistance of state level financial institutions bank and seed capital

assistance and equity participation form IDBL and ICICI.

OBJECTIVE OF VAMASADHARA PAPER MILLS LIMITED

1. To carry on the business of manufactures buyers, sellers,

importers, exporters and deals in all kinds and classes of

papers, cardboard and pulp.

2. To carry on the business of manufacturing purchasing selling

or otherwise dealing in cartoons, fabric boxes, corrugated

papers and other packing materials products and like.

BRIEF DETAILS OF THE UNIT:

LOCATION :Madapam (village) SRIKAKULAM (dist)

CONSTITUTION : public limited company

DATE OF INCORPORATION : 2nd April-1980

DATE OF COMMENCEMENT OF BUSINESS : 28th January 1983

ININTAL PROPOSED COST OF THE PROJECT : 2, 54, 37,000

PRESENT EXISTION COST OF THE PROJECT : 30, 89, 72,000

PROMOTERS.

APIDE with Sri S.R.Raavinder and his associates as Co-promoters

RAW MATERIALS:

Waste paper (indigenous)

West paper (imported)

Straw

Begasse

CHEMICALS:

Rosin

Alum sodium soleplate

Caustic soda lye

Spray starch

Actichen

Others

SOURCE OF WATER

Under grounds through bore wells.

FUEL: Coal, paddy flusk, jute waste, and wood chipping

POWER SOURCE EASTERN POWER DISTRIBUTERS

In 1990-1991 the company having earned more profits of Rs.

78,00,000 then the lower production rate in 1989-90 even though

productions increased in 1992-93 but the firm failed to get profits

HIS DUTIES INCLUDED:

He has to coordinate work of all departments

He has to study the market conditions to make necessary

changes. Sales officer in different geographical regions asserts

in this.

Controlling and supervising of various sections in the

department.

He has to increase the sales volume to the extent possible.

Managing Director is the chairman of the VAMSADHARA paper mills

ltd. Under the chairman junior managing director is acted as vise

chairman under junior managing director.

Executive director headed four departments namely

personnel; and admistration departments, technical department,

financial departments and commercial department.

Deputy general manager headed three departments, namely

general security and personnel departments. Deputy general

manager, manager technical activities also. Under this deputy

general manager, manager 4 types of activates namely pulp mill

paper mills and boiler maintenance.

Under financial departments financial controlling three types of

activities namely sales and purchase, stores, salaries percent

wages and dispatches.

Under commercial department commercial manager is the chief of

the following officers serener commercial officer commercial officer,

purchase officer.

Joint managing director is the chief of the marketing

department. Two different types of officers and three different type

officers are controlling. Under joint managing director. Namely sales

officers(finished products) sales officer (administrative officer) junior

sales officer (paper Godown) Hyderabad sales office (sales percent

collection) Chennai sales office (sales and collection) combater sales

officer (sales and collection).

PROFILE OF FINANCE DEPARTMENT:

Vamsadhara paper mills was set up by the technical promoter sn

S.R.Rabinder with the help of the co-promoters and with the

assistance of

M/S. APIDC

M/S.IDBI

M/S.ICIC

As equity participants the term loan have been extended by

M/S.APIDC

M/S APSFC

M/S SBI

M/S ANDHRA BANK

PARTICIPATING FINANCIAL INSTITUATIONS

APIDC - Andhra Pradesh state financial development

corporation limited, Hyderabad.

APSFC - Andhra Pradesh state financial corporation, Hyderabad.

IDBL - Industrial credit and investments corporation of India

ltd. Mumbai.

SBI percent AB - Srikakulam

SBI - State Bank of India

AB - Andhra Bank

Srikakulam district MPS Classified as category ‘b’ in

industrial back ward ness. The following are the incentives by the

Government to any distry located I this district.

Capital subsidy: 20 percent of the fixed capital seeds new assests.

Power subsidy: 25 percent of the computed consumption for a

period 5 years.

The unit went into commercial production towards the end of

January, 1983-84 and went for an expansion cum balancing

programmer and completed the same and increased its installed

capacity to 6600 tones per annum. During the year 1985-86 and

earned profits (2.09 lakhs)

Paper element like padday straw, waste paper, vast temy are

required in making paper these raw materials are available entire

Andhra Pradesh state and orissa.

Received through state road transport these materials are in the

rang of 40min to 120 min and slacked yards.

FAVORABLE CAUSES OF LOCATINO OF VAMSADHARA

PAPER MILLS LTD.

The main factory that is motivate to establish factory is madapam

etc.

Availability to labour at cheep rate

Availability of continuous water supply

The moving sources lo run the factory electricity

Availability of waste paper

The communication and transport facility

Availability of labour and transport facility of the

importance factory and it was true in the case of VAMSADHARA

PAPER MILLS LTD. Regarding supply of water there was a big banta

situated very nearer with the plant it is bring tank of 200 feet depth

the four to five areas of plant area. This unit was established along

the madras percent howrah railway track.

PROFILE OF OPERATIONS DEPARTMENT:

The vamshadhara paper mills ltd manufactures KRAFT

PAPER using paddy straw and waste gunny as the main raw

materials. This company produces finished KRAFT PAPER. The

company produce 60 tones’s per day.

During the yeat 1994-1995 company was able to acieve a

production level of 12,246 metric tones and a capacity utilization 80

percent during 1993-94. the increased production was achieved as a

result of expansion scheme by way of increase in installed capacity

to 13,000 tones per annum from 6,600 tones ‘per annum’s which

was undertake with the financial assistance from M/s IDBL to a tones

of Rs.115 lakhs during 1992093 the unit started its production with

floating media and after expansion of the plant; they have been

product notation meia semevirgin in (medium) and high strength

KRAFT.

YEAR UNITS LICENSED INSTALLED ACTUAL PR

1998-1999 MTS 16,500 12,000 9,541

1999-2000 MTS 16,500 12000 12246

2000-2001 MTS 33,600 12,00 13,690

2001-2002 MTS 33,600 21,750 16,966

2002-2003 MTS 33,600 21,750 17,783

2003-2004 MTS 33,000 21,750 17,315

2004-2005 MTS 33,000 21,750 17,996

2005-2006 MTS 33,000 21,750 18,867

2006-2007 MTS 33,000 21,750 17,750

2007-2008 MTS 33,000 21750 17897

2008-2009 MTS 33,600 21,750 18,970

RAW MATERIAL IN TONNES:

The raw materials are utilized during the year 2000 to 2010 the

utilization new material is increased so the production also in increases. These raw

materials imported from other countries.

PERIOD UNITS Raw materials in

tones

2000-2001 MTS 22974.971

2001-2002 MTS 23909.109

2002-2003 MTS 27478.545

2003-2004 MTS 27305.327

2004-2005 MTS 28305.327

2005-2006 MTS 29305.629

2006-2007 MTS 30897.137

2007-2008 MTS 31534.140

2008-2009 MTS 32782.270

2009-2010 MTS 33872.677

TOTAL MAN POWER

YEAR Workman Staff Casual

labor

Total

1998-1999 142 98 132 342

1999-2000 138 64 130 332

2000-2001 130 60 128 318

2001-2002 120 59 122 311

2002-2003 113 44 126 279

2003-2004 76 44 126 279

2004-2005 73 41 100 195

2005-2006 70 38 90 195

2006-2007 71 37 87 195

2007-2008 71 39 87 197

2008-2009 71 39 87 197

RAW MATERIALS:

Company uses unconventional raw materials chemicals and

packaging materials for manufacturing the paper, un-conventional

raw material include paddy straw, waste gunny, bagasse, waste

paper etc.

Paddy straw is the main raw material for the unit. It is

available plenty in near village of the plant site the company has

procuring other materials (like waste gunny, bagass waste paper) is

importing from (though waste of) vizag, madras, Mumbai, cuttack,

vijayawada etc. the company is also importing waste paper from

other countries.

The mill uses chemicals along with above motioned materials.

Chemicals like alum sodium sulphate, caustic soda, guragum, rosin

and other chemicals.

PACKING MATERIAL:

It is also purchasing packing materials like Hussein cloth, red

cores, wooden plugs, pp strip roles and others.

Power percent Fuel

Electricity

Own generation

Through diesel generation

Coal

Non-conventional fuel

ELECTRICITY:

It is main source of energy for the unit the units is having

331140 substation with an installed capacity of 20000kv. The

substation has a 33kv line passing through site. The maximum

record demand is the post around 12,200 kv.

The substation is sufficient to meet the requirement of the unit. But

initially the company has to face lot of problem become of heavy

power cut. To over come this problem tow die generator gets of

capacity 750kv each have been installed in the plant.

These are capable of taking core of 100 percent of power cut at the

existing installed capacity and around 5 lakhs was invested for some

auxiliaries, such as motors capacitors, cable etc.

The company uses coal in boilers at very low level. The company

also needs non-conventional fuels such as rise husk, groundnuts

shells and cashew nut shells, these non-conventional fuels are

locally available.

MACHINERY:

M/s several engineering works who are one of he reputed

paper mill machinery manufactures had made the technical

evaluation of the machine condition. As per their findings the areas

requiring immediate attention were the head base, press ports,

dryers section calendaring and pope sections of the machinery, in

these sections of the recording required are mainly grading of

surfaces. Changing of veering and religion of rubber roller etc. which

will improve performance and reduce in mechanical breakdown.

Also a through study of the units performance and

available facilities made by Andhra Pradesh industrial and technical

consultancy organization limited(APTICO)revealed creation

deficiencies in the plant, and certain area where modernization are

needed to reduce variable costs to improve the performance and

validity of the plant.

PROCESS:

The process for manufacturing KRAFT PAPER consists of following

steps.

Boiling

Clarifying

Mixing

Rolling

Drying

Rewinding

BOLLING-CLARIFYING-MIXING-REWINDING-DRYING-ROLLING

To analyzing the process it is in the following way

Boiling in this process the water is boiled and the stream is

reduced for ether purpose of running the mill

Clarifying in this gunny bags and straw and waste paper are

washed through the water and clarified in routine manner.

Drums to brings the thickness of paper to particular level.

Rolling after mixing the paste of the above mentioned

material are rollers for purpose of preparing smooth paper

PROFILE OF HUMAN RESOURCE DEPARTMENT:

Manpower may be though of as total knowledge, skills,

creative abilities talents and aptitudes of an organization work force,

as well as the values. Attitudes, acquired knowledge and skills

represented by the talents and attitudes of the employed persons.

It is valuable assets of an organization of a factory, organization and

money of physical equipment an organization performance and

resulting productivity are directly proportional toe the quality and

quality of its human resources the other officers of the company

have been recuited with persons having relent and experience and

qualifications.

REMEDIAN MEASURES:

Making use of the maximum quantity of raw materials locally

available.

The Srikakulam district is generating sufficient quantities of agro

residence and three will no be any dearth of raw material even if the

plant capacity is increased.

MAIN POWER:

Since the unit is located in a remote backward area, recruitment of

trained and experienced personal was a big problem to the firm

however the company able to strengthen organization structures by

the following methods.

TRAINEES:

With a view to help the local educated unemployed, youth the units

has embarked on a training programmed in which in which 145

trainees were recruited. These trains had in plant training and

majority of them confirmed.

SKILLED WORKERS:

The skilled worker has drawn form the other similar paper

mills by the way of paper advertisement and selection. Presently

there are 14 numbers of workers under this category.

Actually skilled workers 14

Semi skilled 51

STAFF:

39 staff were selected with persons having sufficient,

experience in the line including fresh graduates after a trained with

in the organization how ever experienced persons were taken where

necessary.

WEGE STRUCTURE:

The wage structure of the company favorable compares with

similar organization in the paper industry presently the total wage.

Bill come to employees thus the average salary of employees

comes. To Rs.5000 per month/

Total payments -1, 00, 37,094

Staff wages -32, 30,408

Workmen wages -36, 43,068

Last 2004 total wages - 1, 00, 37,094

Maintenance and repair services are usually supplied under

contract, small producers often Provide maintenance services and

repair services are often available form the manufactures of the

original equipment.

SRI VAMSHADHARA PAPER MILLS LTD.

As VAMSHADHARA PAPER MILLS products line (A product line

is a group of products that are closely related they perform a similar

function) are sold to the same channels or make up a particular

price range consists of purely industrial goods. Our discussion on

marketing tools will be confirmed to Industrial products only.

PRODUCT VARIABLES.

PRODUCT MIX IN VAMSADHARA PAPER MILLS LTD:

Product mix is list of all the product offered for the sale of the

company. It is defined as the composite of products offered for sale

by a form business unit.

Dimensions

Breadth of product mix

Length of product mix

Depth of product mix

PRODUCT

VPM LTD has been producing fine equality papers of different

G.S.M. according to the customer requirement. The organization

decides the G.S.M but the normal run is generally G.S.M the product

an industrial product

PRODUCT VARIENTY IN VPM

The units is producing machine finished Kraft paper of 80-

140gms. The normal run is generally 100 gms. This is used for inner

layers of corrugated paper boards. This product is a very common

product and is producing by most of the mini paper mills and hence

suffers from serious competition.

They are producing variety of product is generally 100

gms. This is used for inner layers of corrugated paperboards. This

product is a very common product and is producing by most of the

mini paper mills and hence suffers form serious competition.

They are producing variety of products they are

manufacturing different shades (brightness) though they have

adequate technological facilities to produce all the qualities but due

to other reasons they are not producing all the variety’s of paper.

The present varieties are

Consistency tools of product mix

Adding new product line

Widening its product line

Widening its product line

Developing product line

Developing product line

Developing relations

PRODUCT GENERALLY CONSISTS OF FOLLOWING

Varity

Quality

Design

Features

Brand name

Packaging

Size

Service

Returns

Name TYPE/QUALITY PRICE PER TON

1st Grade 14 BF 13,500

2nd Grade 16 BF 13,850

3rd Grade 13 BF 14,200

4th Grade 20 BF 15,000

5th Grade 22BF 16,000

QUALITY IN VPM:

According to customer requirements they are necessary the

quality control by the following methods.

Usually they observer the quality sampling method preliminary

elimination existing product lines consists of 3 types namely “

fruition media, semi virgin (medium) and high strength kraft

“difference among these are thickness and of course price quality is

based on the following factors.

Ph value

Ash, oisture content

Bursting strength

Sizing

Qater penetration

Water absorpation

Break length

Tensile strength and etc.

Quality may differ form the variety to another variety but quality

assurance is a must by the above factor.

Brands name:

VPM LTD is not having a particular brand. It is a commodity

but that are having intention to have a brand name but sales are

going on the name of VPM kraft paper.

Brands name is a symbol the term sign or is design are

combination of them intended to identified the goods ad services of

one seller a group of seller and to diffentiate thorn from those of

competitors.

VPM is not having a particular brand. It is a commodity but

that are having intention to have a brand name but sales. Are going

on the name. of VPM kraft paper.

Brand name is a symbol the term sign or is a design are

combination of them intended to identified the goods and services

of one seller a group of seller and to differentiate thorn form those

of competitors.

VPM is not printing the symbol of kraft paper but it refers to others

vamsadhara product or S.R.Rabinder product.

Packing:

VPM ltd produce kraft paper in way of feel and bundle wise. It

is packed with also Kraft paper but in packing system uses with

Hessian cloth. Reel cores. Wooden flugs, wrapper side wise, plastic

straps, seal reel cores, gum tape or bob tapes. Sheets are picked

with wrapper, plastic.straps.

Secondary package includes Hessian cloth and jute wine. Completed

the same and increased installed capacity to 6600 tones. Per annual

during the year 1985-86 and earned profits (Rs.2.09 lakhs).

The unit again slipped back during 1986-87 and has suffered

a book loss of Rs.8.23 Lakhs even though I s has an improved

capacity utilization for various. Reasons in the year 1987-88. the

situation further deteriorated and the unit incurred as cash loss 5.56

lakhs.

The major reasons attributed for this loss were server power

cuts and power tipping resulting in wasting and stoppage of

production and higher in put costs.

Services:

They are offering traded is counts to the regular customers.

Warranty:

If any damage in the prodict while transportation. The

company provides insurance policy if the damage certificate is

produced to the company (head office) then the required

quality/quantity are to be replace by the company.

Size:

The size of the paper depends upon customer order but in

general standard sixe supplied by VPM is follows.

14 BF ,16 BF,18 BF, 20 BF, 22 BF.

BF->BURST FACTOR

NEW PRODUCT:

VPM is producing. MG paper. Initially the company had a plan

to change over to printing and writing grades. However the number

of steps taken to improve further.

Product improvement, cost reduction, product development,

import substituation etc.

Energy conservation measures taken

Additional investments and proposals if any being

implemented for reduction of consumption of energy.

Impact of the ensures at land 2 above for the reduction of

energy consumption and consequent impact on the cost of

production of goods.

Price:

Price is the only element in the marketing mix that produce

revenue to the their element product costs.

According to Philip kotler defines ‘price is the amount of money

charged for a product or service or the sum of the values consumers

exchange for the benefits of having or using the product or services.

If any instances the price of industrial goods fall into patterns

thar are fairly uniform through out and industry nevertheless, a

market must decide whether or not to follow industry patterns, and

it how much to divert from them these deciding must be made

against a background of environment forces including competitor,

changing costs and shifting partners of demand.

CONDITIONS AFFECTING PRICE

Those conditions to which the success of pricing strategies a

particularly sensitive are competitions cost and demand.

Competition:

The nature of competition in industrial markets is influenced by the

size of firms the types of product marketed their life cycle, and price

leadership.

Firm size:

In the typical industrial market as few as there or four large firms

often account of most of the business. They are usually well finance

active in research and responsible for developing and introducing

most of the technical improvements in the industry since they are

often organization to market a broad line of products on a mass

basis man of their costs one joint costs, while the managers seek a

certain percentage of total sales volume they rare take pricing

action which results in sudden changes in market share, product

development, customer service represent and the chief arms of

competition.

Medium sized firms often intimate the actions of the larger

firms although their commitment to research generally are much

less and their product lines generally ate much less and their

product line generally more limited they often concentrate on

products too specialized in design.

Needed in quantities too small to be profitably supplied by larger

firms with their less flexible facilities, these business seldom-initiate

price changes, they may dye in part board relation but is more likely

the result of a satisfactory profit position.

PRODUCT TYPE:

In many industrial markets many materials and items of equipment

are standardized some product standards are established by

government as in the case of many material used in the processing

of foods and drugs. Traders associations such as NEMA (national

electrical manufactures association) which has established widely

use standard for electric motors set other standards. Some product

standards. Such as that where apply to steel and other metals are

highly complex.

Standards for steel for example consist of basis specifications for

each type of steel plus a series of ‘one and offs’ for the addition of

emission of creation ingredients. Variations in the amounts of

gradients used or the addition or emission of various treatment

process’s

Competitions offer for sale substantially the same product in each

classification or a product whose quality equals or exceeds a

common level. This substantially eliminates product quality as a

competitive element consequently added cmphasis place in service

and price as bases of competition. The results is that the marketer

of standardized industrial products is able to use price as a means

of gaining objectives much more effectively than can to be maker of

non-standard items.

For this particular industry of all the sales variavles price is the

major influencein factor demand of this industry of this industry is

highly elastic as for a price is concerned. So units in this industry

tries to eliminate price competitive amount them.

Separate associatins is there for small and medium mils. Usually

association proposes the basis price (called also as factory price of

landing price). And units individually decides their final price

competitors price in a particular area, demand for the product etc.

PRICE IN VPAM LTD.

Generally price includes the following

Discounts

Allowances

Payment period

Credit terms

Pricing methods uses

Competitors

Discounts:

Discount is a straight relation in police on purchases during a

stated period of time there are 3 types of methods.

Trade discounts:

When a manufacturer sells all or part of his goods to

distributor. The customarily quotas a discount to the distributor

which is designed to represent the outlets operating expenses and

profit. It a channel of distribution containing two or more middlemen

or levels of customers used the price a structure may consist of a

chain of discounts subtracted successively form each new.

These discounts needs not be same to all the distributors.

Quantity discounts:

Quantity discounts are price reductions which very according to the

amount purchased by instituting a quantity discount policy the

manufacture offers small order buyers a tangible incentive quantity

discounts may also be said as a means of classifying customers into

large quantity buyers, when the seller wishes to serve direct and

small quantity the seller wishes to serve direct and small quantity

the seller wished to serve direct and small quantity buyers who he

prefers to serve though distributors since quantity discounts can be

so designed that large users.

CASH DISCOUNTS:

Cash discounts are dedications the buyer makes form the face of an

invoice in return for payment before it is due. Their purpose is to

encourage immediate payment and thus enable the seller to avoid

the burden of existing credit.

These are also certain positive benefits which occur to the seller

when invoices are paid immediately. These include faster turnover

of working capital. The elimination of function between the company

and slow paying customers and even increased sale since customer

in good standing are more likely to than those in arrears.

In VPM gives to credit based discounts 5-10 percent because it is

also sold by credit and some time to dealer to purchase a lot of

quantity then that time provide the cash discounts.

ALLOWANCES:

Allowances will be given to different parties in different way in

accordance to their contact.

In VAMSADHARA PAPER MILLS LTD. Specifically allowance are a nill.

PAYMENT PERIOD:

The payment periods based upon the customer agreements.

Generally they offer a period up to 60 days means incase some

customers the product. That is 7 days, 21 days, 30 days, 45 days,

60 days. But each turn Rs.750 cost extension paid.

In below 45 days no interest only Rs.45 days interest free. If they

are unable to pay with in time the bark will lower interest.

In this company available to credit facility for those people who are

having confidence and known persons also.

LIST PRICE ACTUAL PRICE

In VPM LTD. Actually minimum price is 11,500 per turn. Maximum

cost is may higher quantity const is 14,000/- per tun. This price

fixation depend on grade wise like 1st to 5 grades.

COMPETITONS

The VPM produce high quality Kraft paper. The product and

very coming product and is produced by most of the paper molls

and hence suffers from serious competition.

The main competitors of VPM LTD.

Sri Laxmi Tulasi paper (aswarao peta (Khammam))

Coastal paper ltd (Rajamundry)

Sri Vinayaka paper ltd (Rajamundray)

Most preferred G.S.M and B.F

14, 16, 18, 20, 23, 13, FS

Due to sluggish demand in the paper market seasonal

demand is effected percent in mango seasons demand is more.

Stockiest, dealers retailers, good settlement of their complaint with

in limited time.

When the Govt. policy on forestation comes through we

hope to supplement his activity by captive plantations on waste

lands VPM manufactures of over 60 percent of the country value

added and specially papers and accounts for nearly one fifty to of

the country overall paper production.

PRICING MEDHODS USED:

Geographical packing is the general pricing policy following V.P.M

geographical each customers has to pay the transportation cost

form the factory to the specific destination.

All customer would day the same factory price plus

transpiration the disadvantage is that product will cost high to the

customers so competitions who are nearer to that particular

destination will out self. This unit in that area.

At that same time are which is nearer to the factory can be

well utilized by the company consideration these factors. There is no

hard rule indicating the final price even though the policy in factors.

There is no hard rule indicating the final price even though the

policy is cost plus freight. The main consideration is competitors

price.

PLACE (DISTRIBUTION)

Places concerned with getting the right product to markets

place.General industrial distribution system can be shown in like this

Manufacturer Industrial

Distributors

Manufacturers

Representatives

Manufatacturer

Sales Branch

Industrial

Customers

Industrial marketing channels usually. The product is sent

though dealer to the customers (single channel distribution) and to

some buyers it is direct distribution i.e form manufactures to the

customer.

DISTRIBUTION SYSTEM:

Purchase orders will be placed by dealer or directly by their

buyer but supply will be to those buyer only. In case dealer placed

the priced the purchase order material will he made though dialer

and dealer will be paid trade discount (Commission) for the trade be

performed.

In other case where purchase order received form the

buyer directly material will be supplied to the buyer as usual and

collection will be made directly by the company.

This can be illustrated as follows.

1. direct distribution

2. single channel distribution factory dealer V.P.M following the

following channel distribution.

Product-agent-user:

Small settle manufactures who not have their own marketing

department final convenient to have agent different selling points.

This arrangement is considered good fore introducing new products.

Producer industrial distributor-use

Theoretically place consist of the following

1. coverage

2. channels

3. locations

4. transport

particularly the above characteristics are explained on details is

given below whole seller distribution and executive paper.

Merchant

Retailer Converted ware house

Small customer

Industries

Private percent public institution

End user

Coverage:

Cover all over the country and all the major cities in the

country

Channels:

This firm maintain several dealer nearly 10 members.

In regular dealers are also

Sri Y.S.chakravarthi (Madras)

Sri Songhi Murugan (Trades, Madras)

Sri T.Trinadha raju (Vinayaka Traders in Vijayawada)

Sri K.S. Gotham (Laxmi Ganapathi paper mill limited, Hyderabad)

Sri sundaram velu percent Co (Coimbatore)

In this agents direct parties 10 members sri kiret mode from indipro,

Mumbai.

Locations:

Office at the following places bangalur, Madras, Coimbatre,

Hyderabad, Vijayawads, Visakhapatnam, pandicheri percent costal

Andhra, orissa culcutta etc.

Transport:

The company provides transport facilities including loading at

factory indents are per purchase order we and submitted in cell for

loading the documents sent by the transportes are.

Consumer goods companies rate advertising sales promotion,

personal selling and public realation selling sales promotion,

advertising and public realation it that orders shown. Below.

1. duplicate copy of the invoice(excise)

2. if door deliver consignee copy of the cargo.if through bank-

distination copy is issued .

3. waybill.

4. dispatch Chilean.

5. freight Chilean .

PROMOTION

Promotion is the final element in the marketing mix.After

the nature of the product is decided its proceed fixed and the

method of distributing decided. The manufacrure has fare effective

steps in meeting the consumers in the markets.

Basically promotional activities are:

1. personal selling

2. sale promotion

3. advertising

4. publicity

The crucial event in the marketing process is the sale with in the

context of the corporate mission, every component of the

marketing strategy is intended to bring it about. But it must be

brought about in way. Which assumes customer satisfaction.

This places a special burden on advertising,personal

selling ,and sales promotion and to a lesser extend public relations

which are the principals avenues through which contact with the

consumer is made. Each has a unique contribution to make both in

generating. Sales and sustaining customer patronage. This actively

that communicates the merits of the product and persuades the

target customer to buy it is termed as promotion.

Each promotional tool-advertising, personal selling, sales

promotion and public relation has its own unique characteristics and

cost. The rated importance of promotional goods various between

consumer and industrial marketers.

Consumer goods companies rate advertising and public

relations in that order as shown below.

CONSUMER GOODS INDUSTRIAL GOODS

Advertising personal selling

Sales promotion sales promotion

Personal selling advertisement

Public relation public relation

Relative importance:

In general personal selling is more heavily used with complex,

expensive and riskly goods and in markets woth fewer larger seller

(industrial markets)

Element of promotion advertising:

While advertising is less importance that sales class in industrial

markets it still plays significant role. The take of the industrial

advertiser is complicated by the multiple buying influence.

Industrial firms:

The derived nature of demand for industrial goods and the fact that

many material ports and components lose their identifying end

product. These condition influence the role of advertising in the

forms promotional strategy. Which intern is a bearing in the

purposes which advertising will be called upon to serve. While these

purpose vary with the firm and market situation server are fairly

common. They are to inform to identify new customers to which

recognition. To support salesman to motivate distributors and to

stimulate demand.

Persona selling:

Personal selling fives right product to right consumer, persuades

the buyer to buy right thins with right quantity. People have facility

in the salesman as a source of product information and advice.

Though it is most effective and most costly form of promotion it is

the advantage of personal contact.

According to American marketing association persona selling is the

presentation in conversation with one or more perspective

purchaser for the purpose of marketing sales. The people who do

the selling go y many names.

Personal selling is most tools at certain stage of the buying process.

Particularly in building up buyers preference. Convictions and

action. The reasons that personal selling when compared with

advertising has the three distinctive qualities in VPM personal selling

is 0.001 percent

Personal confrontation:

Personal selling involves alive, immediate and interactive

relationship between 2 or more persons. Each party is able to

observe each others needs and characteristics last close hand and

make immediate adjustments.

Cultivation:

Personal selling involves. Alive immediate and interactive

relationship to bring up, ranging from a matter of act. Selling

relationship to a deep personal friendship. Effective sales

representatives we;; normally deep their customers entrusts act

heart if they want long run relationship.

Response:

Persona; selling makes the buyer feel under some obligation for

having listened is the sale talk.

a) sales people

b) sales representatives

c) account executives

d) sales consultants

e) sales constants

f) field representatives

g) district mangers

h) agents

i) marketing representatives.

Sales promotions

A longth sales promotion tools coupons contests premiums.

And like are higly diverse . they have three distinctive

characteristics

According to mason and Ruth sales promotional consents of those

activities that are designed to bring a company ‘s good or services

to faceable attention of consumer’s

Thus the sales promotion includes’ personal selling” advertising

and supplementary selling activity in VPM discounts. Allowance

rare sales profits etc.

Communication:-

They gain attention and usually provide information that may lead

the consumers to the product

Incentive:-

They incorporate some concession. Inducement. Or

contribution that gives value to the consumer

Invitation:-

They include a distinct invitation to engages in the transaction. Now

companies use sales -promotion tools to create a stronger and

quicker response sales promotion effects are usually short run .

however and not effective in building long-run brand preference

Advertising :-

According to American marketing association “advisements” is any

paid form of non personal communication of ideas. Goods. Or

services by business in the advertising message intended to 20

In this unit present ads are provided through news paper only. But

initially mere is no ads. Actually advertising in between cartons

fibbers box meeting

Publicity:-

The old name for marketing public relation publicity this was

simple as activates to promote a company or products planning

news about in media no paid by sponsor.

Public relations:-

Marketers tend to under use relations are use it as an after

through but are often effectives as continuing remainders if the

marketers and produce

The essence of public relations is the paper conduct of a father

relations with the various sub- group’s which compose it general

public this through study of the way in which the company’s

operation effects each of these groups and compressive

programmer corresponding in a positive way to each of them

The main promotion mix tools are sales promotion and personal

selling advertising is very low. Expenditure on promotion is very less

and it includes company s” brochure.

Annual reports. Souvenirs and paper advertisement.

ORGANISATION STRUCTURE

MD (Managing Director)

JMD (Junior Managing Director)

Manager Engineering percent

Services

DM Paper

DM Civil

DM pulp

DM Stores

DM SALES Manager Finance

General Manager

Workers/Employers

CHAPTER -3

3.1 THEORETICAL FRAME WORK

THEORETICAL FRAMWORK

MARKETING:

In common parlance . marketing is the process of selling

something ate a shop or marketing place . to some is has mean the

study of individual’s commendations and their movement in the

market place. To some it has meant the study of institutions and

peons who mere with these products or the study of economic

contribution where as to other it has meant the study of the

behavior of products movements and the way of the person

involved in moving with them . marketing is human activity

directed at satisfying needs and wants of customers through

exchanges process

Definition of marketing :

‘marketing is the performance of business activates the direct flow

of goods and services form produce to consumer or user’

Association American marketing

“marketing is a social and managerial process by which individuals

and groups obtain what they need through creating. Offering and

enchaining products.Value with other”.

Philp kotler

“marketing is a total system of business activities designed to plan.

Price promote and distribute want satisfy9ing goods and services to

person and potential customers’

William j. Stanton

Then comes there purchasing power whether purchasing power

whether the price matches their pocket or no. wither they afford

are not.if they are affordable topurchase the product then comes

their buying behavior whether the product available or not.

The sense of marketing is a transaction or exchange. Marketing is

total system of business activates designed to plan. Price. Promote .

and distribute want sying products to targets to achieve

organization objectives and goals.

IMPORTANCE OF MARKETING

Marketing is the distinguishing the unique functions of the business

has been defined as the process in a society by which the demand

structure for economic goods and services is anticipated or

enlarged and satisfied through the conception promotion exchange

and physical distribution of such and services

Marketing is ofthen desicribed as every one’s business’

this is true becase marketing is capable of influcing the lives of

every one and every day its application is most vital for all

organizations. Whether they are profit making or non profit

making . marketing is the crucial deciding point at which ativities

of an organization meet the approval or dispproval of customer

form every walk of life. It is both philosophy ad technology. As a

philpsophy it guides and direct the business thinking gin certain

economic circumstances. As a it guides and direct the business

thinking gin certain economic circumstances. As a technology it is

concerned with deciding what should be produced . how and when

products could be most effectively distributed a mont the customer

. therofer . it is true to say that marketing is a social technology

A high level of marketing activity isa prerequisite for high

level on economic activity. It has been apply remarket. ‘nothing

happen until somebody sells something. “. Ate present the urgency

is for increased marketing and not merely for increased production

. this along shows the importance of marketing as a potential force

that command shigh significance of the society as wholeIn the past.

It was true that marketing was only concerned with getting

good and service into the handle of ultimate customer . but later

in was realized that goods. Must reach customer . at a number

of activates form conception of product idea to its profitable selling

and ultimate for consumption in recent years marketing has

assume greater impotence. This is mainly dying to the rapidly

increasing of production of a wide range of goods and service.

It is an undisputed fact sustained economic growth depends to

large extent on the performance of marketing that the demand for

goods. And services is stimulated this stimulation leads to the

multiplication of products and ultimately leads top higher production

.Marketing . therefore . is at the heart of all industrial activity . it is

of vital importance for al businessmen to understand the role of

marketing in the economic development of a country and in rising

of living of the people

Marketing provides wide employment opportunities. It is

estimated at in encounters like the USA. Of the total number of

persons employed . between 1/4th and 1/3rd of them are engaged in

the field of marketing . it is marketing which has converted

‘yesterday’s luxuries into today’s necessaries” it mobilizes latent

economic energy and thus is the creator of small business.

Marketing process brings new varieties of useful and quality goods

to customer. This raise the standard f living of the people . it is the

developer of standard for product an services as well as conduct.

Integrity reliability. Etc. besides. Economic integration is made

possible through proper distribution of products. In the words. Of

peter F .. DRUCKER’ without marketing there can no democratic

economic development

MARKETING MIX

The 4 p’S PRODUCT . PRICE PROMOTION PLACE thus make up

marketing strategy called ‘marketing mix. Then comes there

purchasing power whether the process matches their pocket or

not. Whether they afford are not. If they are affordable to

purchase the product then comes their buying behavior whether

the products is available or not .

Marketing is total system of business activates to plan. Price.

Promote and distribute want saying products to target markets to

achieves orgazational objectives ad goals.

People are organization with wants needs has to first accept the

product . then comes ther purchasing power whether the price

matches their pocket or not whether they afford are not

If they are affordable to purchases the products then comes their

buying behavior whether the products is available or not

All these 3 a ‘s can be satisfied only through awareness among

public which can be only be done through marketing . the sense of

marketing is transaction or exchange

Marketing is total system of business activates designed to plan

price promote and distribute want-saying product to largest markets

to achieve organizationally objecteives and goals.

IMPORTANCE OF MARKETING MIX

To day’, the market place isn’t what is used to be’ it is changing

radically as a result of major societal forces such as technological

advances globalization and deregulation these major forces have

created challenges for the marketers

The customer increasingly expects higher quality and

services and some customization. They perceive fewer real product

differences and show less brand loyalty . they can obtain extensive

product information form the internet and other sources . which

permits them to stop more intelligently. They are showing greater

prices sensitivity in their for value

Brand manufactures are facing intense competition from

domestic and foreign brands which is resulting in rising promotion

costs and shrinking profit margins there are being furgher buffeted

by powerful retailer who command limited shelf space and are

putting out their own store brand in competition in national brands.

Companies are doing a lot of soul –searching. And many highly

respected companies are changing in a number of ways

Marketers also are re-thinking their philosophies. Concepts.

And tools so that they can sail safety through the rough but

premising water heave. Therefore in search competitive area

successful companies will be those who can keep their marketing

changing with the changes in their market place and market space.

They need to design and appropriate marketing mix in order to

retain in the market place. So the marketing mix is very important

in competitive business environment.

PRODUCT

“ A product is the most important tool in the marketing mix without

a product there is no question of marketing program is one the

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

attention. Aquistition. Use or consumption might satisfy a need or

want. The product policy or strategy is the corner of a marketing

mix without a product there is nothing to promote. Nothing to

price

Definition

“A product is a bundle of physical service and symbolic particulars

expected to yield satisfaction or benefits the a buyer’s

Philp kotler

‘product should be considered as a bundle of utilities consisting of

various product features an accompanying services

Wore caldrons.

‘product is a complex of attributes including packing . color .

prose. Manufactures. Prestige and manufactures and retailer’s

services which the buyer may accept as offering satisfaction of

wants or need’s

willian J. stantion.

PRICE

Price is an important element in the marketing mix arrival as

aright selling price inessential in sounding marketing mix.

Economists defined price as the exchange of value of product or

services always expressed money . to the consumer the price an

afferent between seller and buyer concerning what each is to

receive price is the device for translation into quantitivate terms

R.S PASIES the received valued of the product to the consumer at a

point of time we can define the prices as the amount charged for

product or services

DEFINITIONS “

“ price is the only element in the marketing mix that crates sales

revenue to the other element of costs’

Philp kotler

“ prices is simply convenient way to express the value that to a

transaction pace upon the product that is being exchanged “

willaiam E.. schocell.

PLACE

Channel of distribution:

After production . the next problem faced by a producers of selling

and distribution because production is made I satisfy the needs of

the consumer so it must reach to the consumer for who it made.

Thus a way through which goods flow form the produce to the

consumer is called channel for distribution.

Definition :

“ every product seeks to link to gather the set of marketing

intermediary is called the marketing channel also trade channel of

distribution :

philpkotler

“any sequence of institutions form the producer to the consumer

including or may number of middle men is called of distributor.”

Me earthy.

“ a channel of distribution of a product is the root taken by the

titles to the ultimate customer or industrial users.”

william j. stantion.

PROMOTION

Promotion is the process of marketing communication to inform

persuade remain and influence consumers of users in favor of your

product or services promotion has three specific purpose it is not

enough to communicate idea promoting persuades and convenes

the buyer and influences his behaviors to taken a desired action

“essentially promotion in persuasive communication to inform

potential consumer of the existence of produce persuade and

convinces then the those products have satisfying capabilities”.

Meson percent rath

“promotion is an exercise information . persuasion and influence”

-wlliam j. stantor

“ these marketing acuities other than personal selling . addicting

and publicity that stimulate consumer purchasing and dialer

effectiveness such as display shows and exhibitions

demonstration and various non- recurrent selling efforts not in the

ordinary routine

Promotional tools were divided into mainly three types:

1. Advertisement:

it was defined as” any paid form of non- personal

presentations of ideas. Goods and services by one identified

sponsor

Objectives :-

to create awareness about the product brand company

etc. to introduce new benefits of features

2. personal selling:

personal selling takes several forms as calls a field

reprehensive assistance by a sales elerk and a gold invitation

from one company president to executive it . can be used for

creating product awareness. Arousing interest etc.

3. sales promotions:

it can be defined as communicating with an audience

through aa variety of non-personal non- media vehicles such as

gives capons. The sales promotions activates supplement co-

ordinate make more effective the efforts of the components of

promotion mix

4. publicity:

Non –personal simulation of demand for a product service

or business unit by planting commercially significant news about it

in published medium obtioaining favorable presentations of it

upon radi. Television of stage the its not paid by the sponsor.

CHAPTER – 4

4.1 DATA ANALYSIS PERCENT

INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

1. table showing dealers experience in paper industry

Table No. 4.1

No of years RESPONDENTS Percentag

e

2 years 6 12

3 years 5 10

4 years 9 18

.4 years 30 60

Total 50 100

Graph No. 4.1

INFERENCE:

From table no. 4.1 and graph no. 4.1 it is observed that 60 percent

dealers are in this type of paper industry for more than four years,

18 percent three to four years. 10 percent dealers are in paper

industry for two to three years. 12 percent dealers are in paper

industry for two years and below. Hence, it is interpreted that

majority of respondents having more than four years experience

with the company.

2. table showing dealers experience of VAMSHADHARA paper

industry

Table No. 4.2

Company No. of Respondents Percentage

Costal paper ltd 35 70

Sri Vinayaka paper ltd 12 24

Sri Lakshmi paper ltd 3 6

Total 50 100

Graph No. 4.2

INFERENCE:

From the Table No. 4.2 and Graph No. 4.2 it is observed that 70

percentage of respondents responded that coastal paper limited is

main competitor, 24 percent Sri Vinayaka Paper Limtied and six

percent Lakshmi paper limited. Hence, it is interpreted that coastal

paper is the main competitor of VAMASHADHARA PAPER MILL. LTD

3. factors influencing the dealers influencing the following

factors

Table No. 4.3

Factors No. of

respondents

Percentage

Quality 10 20

Profit 8 16

Credit 18 36

Demand 14 28

Total 50 100

Graph No. 4.3

INFERENCES:

INFERENCE:

From the Table No. 4.3 and Graph No. 4.3 it is observed that

20 percent dealers are opined that the quality influenced the dealer

to join with Vamsadhra, 16 percent dealers profit margin, 36 percent

dealers credit and 28 percent dealers are influenced by the

demand. Hence, it is interpreted that majority of the dealer

associated with Vamsadhra Paper Mills Pvt. Limited on credit

ground.

.

4. Comparison of VAMASHADHARA Price to other brands

Table No. 4.4

Brand No. of

respondents

Percentage

Costal paper ltd 6 12

Sri Vinayaka paper ltd 14 28

Sri Lakshmi paper ltd 16 32

Vamashdhra paper ltd 14 28

Total 50 100

Graph No. 4.4

INFERENCE:

From the Table No. 4.4 and Graph No. 4.4 it is observed that

majority of the respondents i.e. 32 percent are responded that there

is a price comparison between Sri Lakshmi Paper limited and

Vamsadhra, 28 between Sri Vinayaka and Vamsadhara and 12

percent between Coastal and Vamsadhra. Hence, it is interpreted

that there is a large comparision between Sri Lakshmi paper mills

and Vamsadhara in terms of market price.

5) promotion tools offered by company

Table No. 4.5

Promotional Tools No. of

respondents

Percentage

Advertising 5 10

Sales promotion 35 70

Discounts 4 8

Others 6 12

Total 50 100

Graph no. 4.5

INFERENCE:

From the Table No. 4.5 and Graph No. 4.5 it is observed that

majority of the respondents i.e. 70 percent respondents responded

that sales promotional tool are primitive, 12 percent technical

service, 10 percent discount and 8 percent advertising. Hence, it

is interpreted that the sales promotions like discounts and trade

allowances are primitive promotional tools Vamsadhara Paper Mills

Pvt. Limited.

6) Rank the brands based on the sales considering . the

effectiveness of promotional activities.

Table No. 4.6

BRAND No. of Percentage

respondents

Costal paper ltd 20 40

Sri Vinayaka paper ltd 15 30

Sri Lakshmi paper ltd 10 20

Vamshadhara paper ltd 5 10

Total 50 100

Graph No. 4.6

INFERENCE:

From the Table No. 4.6 and Graph No. 4.6 it is observed that

majority of the respondents i.e. 40 percent opined that the coastal

paper mills limited’s promotional activities shows major influence on

their sales followed by 15 percent Vinayaka Paper Mills, 10 percent

Lakshmi Paper Mills and finally with five percent Vamsadhra Paper

Mills. Hence, it is inferred that Vamsadhra Paper Mills promotional

acitivities are not primitive as compared to other major competitors

to boost the sales.

7). Is there any strategies of advertisements help the sales of

Vamshadhara paper Mills?

Table No. 4.7

ADVERTISEMENTS No. of Percentage

respondents

YES 32 64

NO 18 36

Total 50 100

Graph No. 4.7

INFERENCE:

From the Table No. 4.7 and Graph No. 4.7 it is observed that

majority of the respondents i.e. 64 percent opined that the

Advertisements will influence the sales of Vamsadhra Paper Mills

and followed by 36 percent opined that will not. Hence, it is

interpreted that the Advertising Strategies may influence positively

the sales of Vamsadhra Paper Mills.

8). Does any promotional trade scheme influence Vamshadhara

products

Table No. 4.8

Promotional Trade Scheme No. of

respondents

Percentage

YES 36 72

NO 14 28

Total 50 100

Graph No. 4.8

INFERENCE:

From the Table No. 4.8 and Graph No. 4.8 it is observed that

majority of the respondents i.e. 72 percent opined that the

promotional trade scheme may influence Vamsadhra Paper Mills

Products and 28 percent may not. Hence, it is interpreted that there

may be a significant influence of Promotional Trade schemes on

Paper sales.

9). Positive Opinion regarding distribution system of company

Table no. 4.9

Distribution Processes No. of

respondents

Percentage

Distribution 36 72

Order processing 14 28

Total 50 100

Graph No. 4.9

INFERENCE:

From the Table No. 4.9 and Graph No. 4.9 it is observed that

majority of the respondents i.e. 72 percent has positive opinion on

Distribution and 28 percent on order processing. Hence it is

interpreted that the distribution system of Vamsadhra Paper Mills

are much satisfactory as compared to their Order processing

mechanism.

10). Comparison of quality of Vamashadhara to other brands

Table No. 4.10

Quality No. of

respondents

Percentage

Exectllent 11 22

Very good 25 50

Good 10 20

Poor 4 08

Total 50 100

Graph No. 4.10

INFERENCE:

From the Table No. 4.10 and Graph No. 4.10 it is observed that

majority of the respondents i.e. 50 percent responded that the

quality of Vamsadhra Paper Mills product is Very good compared to

their main competitors followed by 22 percent excellent, 20 percent

good and eight percent poor. Hence, it is interpreted that majority of

the respondents opined that the quality of Vamsadhara’s product is

very good as compared to their nearest competitors.

SUMMARY

The vamashadhara paper mills limited is an agro based

industry was established at MADAPAM I the district SRIKAKULAM

with the aid of government institutions viz. IDBL percent ICIC . After

having faced so many problems initially this unit has been enjoying

profits form the last couple of yeas. This organization is

strengthened by well knowledge technical and administrative

personnel. Well supported by staff.

The present project work report titled A study on Markeing Mix

Strategies of Vamsadhara Paper Mill, is divided in to 5 chapter.

The first chapter deals with introduction about the chit fund

sector in India, need for study, objectives of study, methodology of

study and limitations of study.

In second chapter industry profile and company profile has

been discussed. In this chapter paper industry and its present

scenario the regulations of the government and in contrary paper

enterprises practices are discussed. Later in the part of company

profile genesis and growth of Vamsadhra Paper Mills , functional

aspects and its achievements have clearly been indicated.

FINDINGS

After Careful analysis of the study I found following facts with

regard to paper marketing of Vamsadhra paper mills pvt. Limited.

Majority of dealers are in this type of paper industry for more

than four years so that there may be a long association with

the paper mills with whome they are associating.

Majority of respondents responded that coastal paper limited

is main competitor of Vamsadhara Paper Mills Pvt. Limited.

Majority of dealers have been associating with Vamsadhara

Paper Mills Pvt. Limited because of their credit terms.

Majority of dealers have an opinion that there is price

variation between the competitors of Vamsadhara Paper Mills

Pvt. Limited.

Much respondents opine that sales promotional tool are

primitive in paper market.

Vamsadhra Paper Mills promotional acitivities are not so good

as compared to other major competitors to boost the sales.

Majority of dealer opined that the Advertisements will

influence the sales of Vamsadhra Paper Mills.

Majority number of dealers opined that the promotional trade

schemes may influence Vamsadhra Paper Mills

Vamsadhara Paper Mills Pvt. Limited’s distribution system is

good as compared to their order processing system.

SUGGESTIONS

In the due course of the study on Marketing mix strategies of

Vamsadhara Paper Mills Pvt. Limited after analyzing the facts I

would like to suggest as following to improve the performance of the

company with regard to marketing strategies.

The company has to immediately think on its CRM activities as

the customers of the company are much concentrated by its

competitors

Company has to go for competitors analysis as the

competitors are strengthened with greater speed.

Vamsadhara Paper Mills Pvt. Limited must look over its pricing

and revise them carefully as there are much variation in the

paper market between the competitors.

Vamsadhara Paper Mills Pvt. Limited has to revise its trade

and sales promotional tools.

Vamsadhara Paper Mills Pvt. Limited has to improve its order

processing system.

Finally the company has to improve its supply chain system

for their overall performance

The third chapter deals with conceptual frame work of the

study. In this chapter the clear description of the Marketing Mix

Strategies has discussed as the primary part. Later to understand

the concept of Marketing Mix Strategies towards paper industry and

market the referred literature has been presented.

Fourth chapter deals data analysis and interpretation. In this

chapter the analysis and interpretation has been given as per the

order of questions given in the questionnaire. We have used simple

statistical tools like tabulations and bar diagrams to analyse the

data and analysed data was interpreted with the facts gathered

from the interviews of Vamsadhara Paper Mill and dealers.

The fifth chapter deals with summary, findings, suggestions.

QUESTIONNAIRE

1. How long have you been dealing with the VAMSHADHARA

paper ltd as a dealer?

a) 1 to 2 years

b) 2 to 3 years

c) 3 to 4 years

d) More than 4 years

2. Who are the main competitors of the VAMSHADHARA paper

ltd?

a) Coastal

b) Sri Vinayaka

c) Sri Laxmi tulsi

d) Shiv Sagar

3. What influenced you to deal with VAMSHADHARA paper ltd?

a) Quality

b) Profit margin

c) Credit

d) Demand

4. How do you rate the quality of VAMSHADHARA paper ltd.

comparatively with other Brands?

a) Excellent

b) Very good

c) Good

d) Poor

5. Does VAMSHADHARA paper ltd gives promotional/trade

discounts to their products?

a) Yes

b) No

6. How do you rate the distribution system of VAMSHADHARA

paper ltd?

a) In time

b) Moderate time

c) Late time

7. How to make the order processing?

a) Regular customers

b) Requirement

c) Others

8. How do you distribute your products?

a) Distribution channels

b) Direct selling

c) Order processing

9. How would rate the Price of VAMSHADHARA paper ltd in

comparing other brands?

a) Very high

b) High

c) Moderate

d) Low

10. Considering all aspects given above which is the highest

preferred in the Market?

a) Vamshadhara

b) Coastal

c) Sri vinayaka

d) Sri laxmi tulasi

BIBLOGRAPHY

Marketing management -

PHILIP KOTLER

Research methodology -

C.R.KOTHARI…