Mahua Sugar Factory
Mahua Sugar Factory
Mahua Sugar Factory
⇒ CERTIFICATE
⇒ DECLARATION
⇒ ACKNOWLEDGEMENT
⇒ SYNOPSIS
⇒ OBJECTIVES OF STUDY
⇒ LIMITATION OF STUDY
⇒ METHODOLOGY
⇒ HISTORY
⇒ LOCATION
⇒ OWNER
⇒ AREA
⇒ TURNOVER
⇒ AWARD
CH. 2. PRODUCT PROFILE 13
⇒ PRODUCT
⇒ SALES VOLUME
⇒ MAJOR CUSTOMER
CH.3. ORGANISATION CHART
15
⇒ ORGANISATION CHART
CH.4. MARKETING MIX
17
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CH.5. INDUSTRIAL SCENARIO
20
CH.6. PRODUCT 28
⇒ Product Classification
⇒ Product Mix
⇒ Product Line Decision
⇒ Brand
⇒ Packaging & Labeling
CH.7. PRICE
39
⇒ Concept of Pricing
⇒ Setting the Price
CH.8. PLACE 51
⇒ Concept of Place
⇒ Channel Levels
⇒ Functions of Channel
⇒ Channel - Design Decision
⇒ Channel – Management Decision
• BIBLIOGRAPHY 63
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Certificate
The project or any part of it has not been previously submitted for
any degree.
Subodhra medom
Associate Professor
Department of Economics
Veer Narmad South Gujarat University
Surat
Date:17/06/2010
Place:-SURAT
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DECLARATION
I the undersigned, Mr. Ashish S. Gandhi herby declare that project work
entitled, “Marketing Mix of Sree Mahuva Pradesh Sahkari Khand Udyog Ltd,
Bamania ’’ is my own work and is not submitted to any other university or institution
for any other purpose.
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ACKNOLEDGEMENT
I felt a great pleasure to prepare this report at this stage which is outcome of
all efforts of our self and many other who helps us through out the preparation.
.
I owe deep gratitude to Mr. RAJESH NAIK - Sales manager and Sree Mahuva
Pradesh Sahkari Khand Udyog Ltd. Who provides me good information’s and
marketing related data.
Ashish S. Gandhi
(M.B.E.)
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Synopsis of project work,
M.B.E. (sem 2)
ACADEMIC YEAR: - 2006 – ‘07
Project: - Marketing Mix of Sree Mahuva Pradesh Sahkari Khand Udyog Ltd,
Bamania ’
Location of the Unit where Project work is to be done:-
P.O. Sugar factory, BAMANIA.
Tal. Mahuva, Dist. Surat, Gujarat – 396246.
Project Work:-
A) Company Profile:
History of company and details of its owner’s area of operation & turn
over .
B) Product Profile:
Type of products, sales volume and major customers of the company.
C) study of the Organization:
Company’s organization structure and study of marketing department
and its function.
D) Study of Marketing Mix:-
Product
Price
Place
E) Sources of Information:
Company’s annual report, marketing mix related book and internet
surfing.
F) Methodology to be used:
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Collection of data through primary and secondary sources, analyzing
data, reporting the results.
OBJECTIVE OF STUDY
The main objective was to study the marketing mix of Mahuva pradesh
Sahkari Khand Udyog Mandal Ltd Mahuva and its product.
⇒ To find out the Marketing Mix i.e. Product, Price, Place in Mahuva sugar
factory.
LIMITATIONS OF STUDY
There is no activity that can be completed without any limitation. The main
limitation facing during the preparation of this report on “Marketing mix” of Shree
Mahuva Pradesh Sahkari Khand Udyog Ltd.
1. For the preparation of this project report, time limit is the biggest problem.
Because the project report is to be completed within stipulated time.
2. Since the duration of the project is short these may be the chances of some
information may be left out.
3. At the time of training, people concerned with the organization are very
busy in routine work. So we get only brief idea of functioning of
organization.
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METHODOLOGY
⇒ PRIMARY DATA:-
The primary data that data which are generated or gathered by any person for
his own study or for his own purpose. This type of data are generated for the first
time. This type of data are not generated by any body in the past so this type of data
are called “PRIMARY DATA.”
For the completion of this project I collected primary data so my project report
is partly based on the primary data. For the collection of those primary data met some
officers in the Mahuva sugar factory. Whenever I was confused in any information I
had talk with them personally.
⇒ SECONDARY DATA :-
The data which are already generated or gathered by some one else in the past
for his own purpose or study and if such data are collected or used by us for our study
or our purpose then those data are called “SECONDARY DATA.”
I have collected some of the secondary data. For collecting those data I had
used internet and other books related to marketing mix.
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CHAPTER -1
COMPANY
PROFILE
HISTORY
LOCATION
OWNER
AUDITORS
TURNOVER
AWARD
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⇒ HISTORY :-
⇒ LOCATION :-
⇒ OWNER :-
The owners of the society are 6914 No. of members. In which 15 members
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are individuals & 6929 are co-operative societies.
Another word we say that the society, which in Gujarat is, registered as a co-
operative society under the provision of the Gujarat state co-operative societies Act.
1961.
⇒ Turnover :-
⇒ AWARDS :-
The societies have been awarded The Gujarat Co-Op. Award for achieving
best result in the season 2001-02.
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CHAPTER -2
PRODUCT
PROFILE
PRODUCT
SALES VOLUME
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⇒ Product:-
1) Crackers
2) Books
3) Daily item
⇒ SALES VOLUME :-
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CHAPTER -3
ORGANISATION
STRUCTURE
ORGANISATION CHART
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ORGANISATION CHART
LOANS
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General Body
Board of Directors
Chairman
Managing Director
Finance
Department
General
Manager
Accountant
Asst. Accountant
(Cashier)
Clerk
CHAPTER - 4
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MARKETING
MIX
Introduction
(Marketing mix)
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Manager
Assistance
manager
Clerk Clerk
MARKETING MIX
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PRODUCT :- product variety, Quality ,Design,
Feature, Brand name, Packaging,
Size, Services, Warranties.
Marketing mix is created for setting up the activity of trade channels and
satisfying the consumers by providing them satisfactory product in different segment
of market.
The firm can change its price, sales promotion and advertising expenditures in
the short-term. It can develop a new product and modify its distribution channel only
in the long run. Thus the firm can make some period-to-period marketing mix changes
in the short run then the number of marketing mix decision variable might suggest.
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CHAPTER - 5
PRODUCT
Product
Product Level
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⇒ PRODUCT :
A physical item that is offered for sale should not automatically be considered
a product if it has no market. Like 95% of patents they are at best interesting
diversions and at worst a waste of time.
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PRODUCT LEVEL :-
2. Generic Product:-
The second level is called the generic or basic level. In this level there are core
benefits which are converted in to the basic product. There are three classes in society
the upper class, middle class and the lower class..
3. Expected Product:-
The third level is the expected product level which is provided. The marketer
prepares an expected product. Namely the set of attributes and conditions that buyers
normally expect and agree to when they purchase this product.
4. Augmented Product:-
The fourth level of the product is the augmented product, namely one that
includes additional services and benefits that distinguish the company’s offer from
competitors offer.
5. Potential Product:-
The level which is called the potential level of the product is the very
important and the last and final level of the product. In this level the products category
is high. The innovation in the product is necessary.
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CHAPTER – 6
PRICE
Concept of Pricing
Setting the Price
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⇒ PRICE :-
In economics and business, the price is the assigned numerical monetary value
of a good, service or asset.
Price is also central to marketing where it is one of the four variables in the
marketing mix that business people use to develop a marketing plan.
Price is the amount of money charged for a product or services, or the sum of
the values that consumers exchange for the benefits of having or using the product or
service.
Value is the worth the consumer attaches to the product for which he is willing to pay
a certain amount of money.
Market price is the price determined by the free play of the demand and
supply. The market price of the product affects the price paid to the factors of
production – rent for land, wages for labour, interest for capital and profit for
enterprise.
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In this way price becomes a prime or basic regulator of the entire economic
system.
The company must take the price decision for the first time when it introduces
its regular product into a new distribution channel, and when it enters bids on new
contract work. The firm must decide where to position its product on quality and
price.
The company first decides where it wants to position its market offering. The
clearer firms objectives, the easier it is to set price. A company can pursue any of five
major objectives through pricing: survival, maximum current profit, maximum market
share, maximum market skimming, or product quality leadership. These are the
objectives which are firstly selected by the company.
Shree Navsari Madhyasth Grahak Sahakari Bhandar Ltd. has made some
objectives for price setting for survival of the company profit. It is major objective
for any company. But Shree Navsari Madhyasth Grahak Sahakari Bhandar Ltd. is a
co-operative society therefore their main objective is no profit no loss. It is non-
profit organization The company is not in total loss but it also think for the profit but
they earn profit to operating expenses .
B) Determining Demand:-
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Each price is lead to a different level of demand and therefore has a different
impact on the company’s marketing objectives. The relation between alternative
prices and the resulting current demand is captured in a demand curve. In the normal
case, demand and price are inversely related: the higher the price, the lower the
demand. In the case of prestige goods, the demand curve sometimes slopes upward.
If the price is high, the level of demand may fall.
C) Estimating costs:-
Demand sets ceiling on the price the company can charge for its product.
Costs set the floor. The company wants to charge the price that covers its costs of
producing, distributing, and selling the product, including the fair return for its effort
and risk. Yet, when companies price products to cover full costs, the net result is not
always profitability. There are two types of costs which are there in the company.
1) Fixed Cost:-
Fixed costs (also known as overhead) are costs that do not vary with
production or sales revenue. A company must pay bills for rent, heat, interest, salaries,
and so on, regardless of output. In Mahuva sugar factory fixed costs are interest,
salaries, wages, electricity bills etc are paid as a fixed cost.
2) Variable Cost:-
Variable costs vary with the level of the production. These costs tend to be
constant per unit produced. They are called variable because their total varies with the
number of units produced. In the sugar factory there is transportation which is
necessary to carry the sugar canes from the cultivation (gardening) area to the
production area. The factory hires the trucks. The rent paid by the factory to the truck
owners is called the variable cost. This type of cost is called the variable cost.
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1) Target Return - Pricing:-
In the target-return pricing the firm, determines the price that would yield its
target rate of return on investment.
This method is used by the mahuva sugar factory. They produce the sugar
cane and the cost of the production is there and they think of better return on their
investment in the production because the return on this investment is distributed to the
share holders because they invest their money in the shares of the factory. And the
other hand the farmers who are the raw material provider they are also given the
return of their raw material. The mahuva sugar paid to the farmers on the installments.
The mahuva sugar factory is a co-operative firm therefore the firm not sale the
product in below the cost. This organization is a non-profit organization.
The mahuva sugar factory’s price is decided by the government therefore the
customers are not getting the sugar at their perceived price. They decrease their price
when the price of the sugar is decreased in the market by the government.
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2) Market Position:-
The market position of the different firms is different. The price of the product
is different because of the market position of the firm. They charged different price by
showing their image in the market. If the product of the mahuva sugar is of best
quality and the image of the firm in customers mind is good then they charged high
price on the basis of their quality product. The price is normally fixed by the
government if the company image is well then they charged that price. The Mahuva
sugar factory has a good reputation in the market therefore they charged high price
than other factories.
3) Economic Environment:-
In the recession period, the price is reducing to maintain the level of turnover.
On the other hand the prices are increase in boom period to cover the increasing cost
of production. In mahuva sugar factory this kind of position is happened when the is
published by the food ministry prices of the sugar are raised or lower by the
government if there is a boom period than the prices are increases and if the market is
going under the recession period than the prices of the sugar are reduced.
4) Government Policy:-
Price decision is also affected by the price control of the government. If the
producer fixes the price high, the govt. may nationalize this concern. Sometimes
government starts selling this product. So price can not be fixed higher due to the fear
of the government action. Sales quota is given by the government to the sugar factory.
The quota includes the fixed price of the product by the government. The quota is
given for specific time period therefore the factory must go through this time period.
If the firm not go through this quota in a given period than they have to sale that quota
at the lower price. But they are not permitted to sale their product at a below the cost
of the production.
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Company usually do not set a signal price but rather a pricing structure that
reflects variation in geographical demand and cost, market segment requirements,
purchase timing , order level, delivery frequency, services contracts, and other factors.
The following are the price adapting strategy in the Mahuva sugar factory.
a) Discriminating Pricing:-
Companies will often modify their basic price to accommodate differences in
customers, products locations and so on. Discriminatory pricing occurs when a
company sells a product or service at two or more prices that do not reflect the
proportional difference in costs. Discriminating pricing takes several forms:-
2) Product-form Pricing:-
Here different versions of the product charged different prices but not
proportionately to their respective cost. Here in factory there are three types of sugar
produced like M-30, S-30 and L-30. Each of these types charged different price.
3) Location Pricing:-
Here locations are priced differently even though cost of offering each
location is the same. There are two things which are there in location pricing the levy
sugar market and the open market. In the levy sugar market the Mahuva sugar factory
levy sugar’s customers are those customers who are nominees which are selected by
the government i.e. Gujarat, Maharashtra, Punjab etc. They charged different prices.
And in the open market which is in local area they charge different prices too. If the
customers are far from the company therefore they paid tax to the govt. therefore the
prices are charged differently to theses customers.
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CHAPTER - 8
PLACE
Concept of Place
Channel Levels
Functions of Channel
Channel - Design Decision
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⇒ PLACE :-
Place is a term that has a variety of meanings in a dictionary sense, but which
is principally used in a geographic sense as a noun to denote location, though in a
sense of a location identified with that which is located there.
For instance, much has been written about the "sense of place", a well-known
phenomenon in human society in which people strongly identify with a particular
geographical area or location. Another instance of its use is as an identifier of a
location that is noted for a particular characteristic.
In Marketing, place refers to one of the so-called 4 P's, defined as "the
market place". It can mean a geographic location, an industry, a group of people (a
segment) to whom a company wants to sell its products or services.
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CHANNEL LEVEL :-
The producer and the final customer are part of every channel. We will use the
number of intermediary levels to designate the length of a channel. When the product
is reached from the manufacturer to its customer there are intermediary which are
there in between the manufacturer and the customers. Which are as follows:-
2) Provide Information:-
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Provide information to the principals (producers). They provide marketing
intelligence feed-back to their producers. The channels are in position to do
authentically since they are in direct contact with custom and competitors and feel the
pulse of market all time.
The mahuva sugar factory is based on the distribution channels. In which the
agents are working for the selling of the product and they are providing the
information regarding the current market conditions to the factory. The agents are
directly contacted with the customs and the competitors therefore the current issue of
the market is provided by the agent.
5) Pricing:-
Channels help in implementing price mechanism. Distribution channel also
help implement the price mechanism in the market, they assist in arriving of price
level that is acceptable to the marketer as well as the user. They provide the
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suggestions about the customers who are capable to pay that amount which offer in
the market. The mahuva sugar factory depends on the agent for deciding the price.
The agent collect the information from the market regarding the price and give to the
factory. The agent also collects the price details made by the government.
6) Matching Demand and Supply:-
This is the very important for the Mahuva sugar factory to match the demand
and supply because they have to sale according to the realizing of the government
quota they have to finish the quota which is given by the government in the given
time period. If they do not match the demand and supply than they may loose the
sales. So for that company always have to make a contact with the agent.
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intermediaries are also there in the channel of distribution like wholesaler, big
retailers etc.
CHANNEL MANAGEMENT DECISION :-
There are many intermediaries which are exist in the distribution channel after
selecting the channel alternatives the selection, training, motivation and evaluation is
necessary.
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4) Evaluating the Channel members:-
Producers must periodically evaluate intermediaries performance ageist such
standards as sales quota attainment average inventory level customers delivery time
etc. In the mahuva sugar factory they evaluate their channel members in which they
see that the channel members are working in the proper way or not if they find any
difficulty or fault by them than they does not give him a more involvement for the
sale.
5) Modifying Channel arrangements:-
Producers must periodically review its channel arrangements.
Modification is necessary when the distribution channel is not working properly. The
mahuva sugar the also doing modification in their channel if they find any agent not
follow their rules and conditions than they warn that agent for their misbehave. The
sugar factory want to start export of the sugar in future for this they are going to
modify their distribution channel.
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BIBLIOGRAPHY
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