AN

1
INDUSTRIAL TRAINING REPORT

ON

BALAJI WAFERS PVT LTD

RAJKOT

WITH SPECIALISATION

IN

CHANNELS OF DISTRIBUTION

An
Industrial Training Report
On
Balaji Wafers Pvt Ltd Rajkot

2
 With Specialization In
Channels of Distribution
Submitted To
Saurashtra University Rajkot
In Practical Fulfillment of the Requirement for the Degree of
B.B.A
Prepared By
Sneha D Jobanputra
T.Y.B.BA.

Roll No
Exam No
Academic Year

Guided By
Prof R V Keshwala

Shri K H M Arts & Commerce College

Porbandar 360577

PERSONAL INFORMATION

NAME SNEHA D JOBANPUTRA

FACULTY T.Y.B.B.A.

SUBJECT AN INDUSTRIAL TRAINING REPORT WITH

SPECIALISATION ON CHANNEL OF
DISTRIBUTION

FIRM VISITED BALAJI WAFERS PVT LTD

3
INSTITUTION SHRI K H M ARTS AND COMMERCE
COLLEGE

CENTRE PORBANDAR

UNIVERSITY SAURASHTRA UNIVERSITY

ACADEMIC YEAR 2004-05

ROLL NO 6

EXAM NO

DURATION OF TRAINING 15 DAYS \ TWO WEEKS

GUIDED BY PROF R V KESHWALA

COMPANY CERTIFICATE

4
 SHRI K.H.M. ARTS AND COMMERCE COLLEGE PORBANDAR

This is to certify that Miss Sneha D Jobanputra a student of T.Y.B.B.A.Carried out the
industrial practical training at BALAJI WAFERS PVT LTD Rajkot with specialization in channel of
distribution. As per Saurashtra University syllabus she has prepared the report under my
guidance and direction.

Academic year 2004-05

Place
Date

5
 Guided By
Prof R. V. Keshwala

PREFACE
As growing child does not need only food but nutritious and healthy food in the same
way a B.B.A. student does not need only industrial training about an industrial training
particularly with specialization in the various fields of marketing financial personnel as well
as production aspects of an industry.

The B.B.A. program is designed in such a way that the students are able to get
theoretical as well as practical knowledge of the subject which provides more confidence and
better understanding to the student for the same.

As per the rules and regulations laid down by the Saurashtra University and program
arranged by our college a student of T.Y.B.B.A. has to get a practical training for two weeks or
15 days in any industry to obtain the practical knowledge and experience of management.

In the management course the practical training is of great importance only the
theoretical discussion and case study in classroom is not enough for knowing various aspects
of management and business this training highly enables the students to observe the
theoretical principles and values and to put them into practice.

I took training in BALAJI WAFERS PVT LTD

Rajkot in the academic year 2004-05 on my side I have dons my level best to cover all
the points and give detailed information about the specialized topic of channel of distribution
of the same company and have concentrated on the precise and meaningful report
construction.

Thanks
Sneha D Jobanputra

6
 ACKNOWLEDGEMENT
I am very thankful to our college principal Dr. J.S. Ramdatti and our guide Mr. R V
Keshwala for their valuable guidance and help and also Mr. A B Savjani for their cooperation
in making my training feasible.

I take this opportunity to express my gratitude to the executive persons of BALAJI

WAFERS PVT LTD namely the marketing manager Mr. Nayan Tank, the sales representative
Mr. Jay Sachdev and other executives of the company who gave me all the information abut
the company and spent their valuable time for giving me the details about my selected
topic of channel of distribution.

Lastly I would like to thank my family, friends and well wishers to encourage me and
make me reach at this level.

Sneha D Jobanputra

INDEX

7
Sr. No Particular Page No

1 General Information 10

2 Marketing Department 30

3 Channel Of Distribution 42

A ) Channel Of Distribution 43

B) Physical Distribution 65

4 Future Plans 74

5 Conclusions 75

6 SWOT Analysis 76

7 Findings And Recommendation 78

8 Bibliography 80

9 Limitations Of The Report 81

GENERAL INFORMATION

Contents

Sr. No Particulars Page No

1 Introduction 11

2 Company Profile 12

3 Mission 13

8
 4 History And Development 14

5 Corporate Goals And Objectives 16

6 Key Persons Of The Company 17

7 Size And Form Of Organization 18

8 Organization Chart 19

9 Time Keeping System 20

10 Factors Of Location 21

11 Facilities Given To The Employees 23

12 Turnover Of The Company 24

13 Products Of The Company 24

14 Chart Of Production Process 25

15 Research Methodology 26

16 Questionnaire 29

INTRODUCTION

For preparation of an industrial training report it is very important to understand the

general matters of the company without the information of such matters the report it is very
important to understand the general matters of the company.

Without the information of such matters the report is incomplete as it does not provide
a perfect knowledge of company these type of general matters are considered in the section
of general information.

BALAJI WAFERS PVT LTD produces ready to eat food items now a days people are fond
of eating ready to eat food and BALAJI name is very popular in Gujarat and saurashtra.

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 It has the one and only fully automatic plant in Gujarat the main objective of the
company is to provided best quality product at the cheapest rate we can also say their
mission is quality first coast second the market of the product is large and comprehensive.

COMPANY PROFILE

Name Of The Company BALAJI WAFERS PVT LTD

Head Office BALAJI WAFERS PVT LTD

Vajdi(Vad), Kalavad Road
Taluka Lodhika
Rajkot 360003
Trade Mark BALAJI

Year Of Establishment 1982

Nature Of Product Food Item(Snacks)

Production Capacity 1200 Kgs Per Hour

Size And Form Of Company Size Medium Scale Unit

Form Private Limited

Slogan Any Time Crunchy

All Time Fresh

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Bankers Corporation Bank

Phone No 0281-2387132\2385744

Fax No 0281-2389300

E-Mail Address Contact@Balajiwafers.Com

Website Www.Balajiwafers.Com

MISSION
1. To provide ultimate value satisfaction to its customers in terms of quality
commensurate with price through

a. Better quality
b. Excellence in technology
c. Speedy service
d. Management expertise

2. Too much preferred organization for both its future and present

a. Employees
b. customers\suppliers
c. Related agencies and society at large
d. Share holders

3. Continue its march towards program and retain its front line
BALAJI a symbol of quality

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12
 HISTORY AND DEVELOPMENT
History is the mirror of the past it shows the glorious efforts done by the
promoters of the company in the past the history speaks of the past performance
about the financial performance, development of the company and the present
situation.
Balaji wafers has also an interesting history behind the establishment Mr.
Bhikubhai the chairman and Mr. Chandubhai the managing director of the company
worked very hard to reach at the current position.
The history of Balaji Wafers begins with the era when Chandubhai and Bhikubhai
were working on contract basis for supplying the wafers to the canteen of astron
theatre at Rajkot city.
Shri Meghji Virani, Bhikubhai Virani, Chandubhai Virani and Kanubhai Virani are
the sons of Shri Popatbhai Virani of Dhundhoraji village of Jamnagar district.
But at that time they got the raw materials from the 3rd party and than they
manufactured and supplied the same to the canteen of Astron Theater but there were
a problem of short as well as delay in supply of products on time. As these kinds of
problem can lead a business to peril and can ruin it something had to be done in these
regards as an ultimate solution to all the problems they decided to manufacture wafers
on their own and supply the same to canteen and thus the foundation of Balaji Wafers
was first setup but without any brand name in 1982.
Since the taste and quality was excellent, demand for their wafers was
increasing day by day to pace with this increasing demand of wafers in market they
started producing wafers in bulk without any compromise in quality and taste of the
products they acquired a small place with very limited investment with indigenous
frying method thereafter a semiautomatic plant was established with a production
capacity of 200kgs per hour they started selling their product initially in ordinary
packing but after upgrading the technology they used decent packing to attract cream
market and thus got more market share in the food market. This development had lead
BALAJI from normal wafers producer to BALAJI WAFERS PVT LTD in 1990.

DEVELOPMENT
Development means what the company had done it the past and how much
overall efficiency has increased till today Balaji Wafers has come long way since
establishment and has firmly established itself as a leader in high quality product and
has made remarkable improvement both in services and quality of products.

The initial investment of the company was only Rs. 25000 in recent stage it has
assets of Rs. 5 crores and will be increase in future the company conforming with many
hardest and make a progress and development which may be described by following
ways.

1. It started a production in simple packing and without brand name and satisfied
the demand at canteen since, the quality is best the demand of the product was
increased.

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 2. This development had lead BALAJI from normal wafer producers to BALAJI
WAFERS PVT LTD in 1990 up to now BALAJI was producing the products manually.

3. After then to meet the demand they started manufacturing the product in
semiautomatic plant the production capacity of this machinery was 200 kgs per
hour.

4. After then they adopt a highly techniqued fully automatic plant which is only one
in whole of Asia the production capacity at this plant is 1200 kgs per hour.

Recently they set up a huge fully automatic plant for production as well as
nitrogen packing for long term preservation of the products.

CORPORATE GOALS AND OBJECTIVES

Company has its own culture and identity in business world it is effort of the
company to maintain identity and to be no 1 in global market company has fixed its
goals and laid down some certain mission to achieve them.

CORPORATE GOALS

1. To ensure quality at all stages.

2. To increase productivity and market share of the firm.
3. To increase the profitability of the firm.
4. Provide speedy services and satisfies the need and wants of the society.
5. To keep a slim and trim but fully satisfied management team to operate faster
and to achieve higher levels of business and growth effectively.
6. To effort foreign customer and export the product in near future.

OBJECTIVES
Obviously primary objective of any company is to profit maximization but in
present competitive marketing approach profit maximization should not be one and
only goal but it is a short term goal every company wants to increase prestige market
share etc so wealth maximization becomes important goal of company which is also
long term goal of the company.

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 KEY PERSONS OF THE COMPANY

Mr. Bhikubhai Virani Chairman

Mr. Chandubhai Virani Managing Director

Mr. Kanubhai Virani Technical Director

Mr. Keyur Virani Research And Development

Managed

Mr. Hitesh Virani General Manager

Mr. Nayan Tank Marketing Manager

Mr. Jay Sachdev Sales Representative

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 SIZE AND FORM OF THE ORGANIZATION

SIZE
Industries can be categorized on the basis of capital invested in it there are three
categories.

1. Small scale industry.

2. Medium scale industry.
3. Large scale industry.

So far as BALAJI WAFERS PVT LTD is concerned it can categorized as medium scale
industry because as per new industrial law the investment limit prescribed by government
for small scale industries is 5 crores.

Investment about more than 5 crores is called medium scale industries BALAJI WAFERS
PVT LTD has invested more than 5 crores.

FORM OF ORGANIZATION

According to John Piffiner Organization is an essentially a matter of man to man job to

job and department to department.
There are different types of organization like

1. Line organization
2. Staff organization
3. Line and staff organization
4. Committee organization
5. Project organization
6. Matrix organization

Out of all these Balaji Wafers follows line and staff type of organization structure line
and staff organization means to prepare plans to take vital decisions and to implement them
effectively all these function cannot be performed simultaneously by a single person hence
there emerged a system where in line officers received advice from the staff experts the
organization structure is as follows.

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 ORGANIZATION CHART

Chairman

Managing director Technical director

Technical staff

Production Marketing
manager manager

Area wise
salesmen
Technical Packing
workers supervisor

Working staff

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 TIME KEEPING SYSTEM
Time is very important for any business unit any business unit as from the title
time keeping system we can say that under this system the arrival and exit time of the
employees is noted

Balaji wafers is having mainly a general shift and in between they have a lunch
break of one hour which is mentioned as follows.

General shift 8am to 5 pm

Lunch break 12 pm to 1 pm

LOCATION FACTORS

Location plays an important role in establishment of a new unit every business

entrepreneur of a business unit must give full consideration to the suitable location for
enterprise because success or failure is highly depended on the location for enterprise

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 because success or failure is highly depended on the location of the unit optimum location
point is expected to give the lowest unit cost of production as well as of distribution and
hence it can be most profitable for the business an entrepreneur must be choosing an ideal
location at the time of launching the enterprise in other words all the pertinent factors
influencing location will have to be taken into account and weighed very carefully.
So far as BALAJI WAFERS PVT LTD is concerned it requires potatoes, edible oil , iodized
salt, bananas , mungdal, chanaldal, vatana etc in the production of various type of product
such raw materials available at Rajkot very easily main reason for such location of the unit
are as follows:

AVAILABILITY OF RAW MATERIALS

The most important factor, which is directly affected to the product, is the availability
of raw material for producing the product.
These respective product and its raw materials of Balaji Wafers are:-

products raw materials

Potato Wafers
Farali Chevdo Potatoes

Mungdal MungDal

ChanaDal ChanaDal

Vatana Peas

Peanuts Roasted Peanuts

Masala Sing

Sing Bhujiya Besan Groundnut

Ratlami Sev Besan , Mathdal

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 Banana Wafers Banana

In addition to these iodized salt edible oil, chilly powder, black pepper etc all the raw
material is required so whichever material is easily available at nearest place. Potatoes are
purchased from Disa, Ahmedabad and Surat through dealers as per requirement.

ELECTRICITY:-
The availability of electric power is very essential for any unit where production is done
24 hours continuously. BALAJI WAFERS PVT LTD gets electricity from G.E.B. and in absence of
G.E.B. light it can be operated by their own generators.

LABOR:-
For running industry main essentially is the labor because without man any work is not
start so, man is focus of any industry essential supply of labor is in required quantity is also
taken into consideration while establishing an industry if the company can find skilled and
experienced labor at minimum wage rate it can reach to its organizational goals in time in
Rajkot city both skilled and semiskilled labors are available the level of education is also high
in Rajkot.

20
 TRANSPORTATION:-
For every industry transportation facilities have much important to run their work
regularly and smoothly as to get raw material quickly as well as to supply their finished
goods to the market.
Rajkot has an all weather part so there is no problem of transportation for BALAJI
WAFERS PVT LTD moreover Rajkot has all the facility of transportation except seaway like
railway airway and road way etc it is well known that railway of Rajkot has the direct
connection with the national railway line.

FACILITIES GIVEN TO THE EMPLOYEES

It is the duty of any unit to provide beneficiary services to the employees of the
unit.Balaji Wafers also provides many basic welfare facilities to the employees. This company
provides the following beneficial facilities to the employees undertaken to the provision of
the law.

Facilities given to the employees are as follows:-

1. Bonus is paid every year.

2. It also provides transportation facility.
3. It also provides refreshment facility.
4. At the time of any accident during the course of employment the company provides
first aid and hospital expenses.
5. Company also provides it s product at a concession rate to employees.
6. At the time of any family function of the employees company provide several facilities
like gift articles etc.
7. Music and song at production place.
8. Lunch is also given to the employees at a rate of Rs. 5 per dish.

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 TURNOVER

Turnover refers to total annual sales turnover so far as BALAJI WAFERS PVT LTD is
concerned its annual turnover is around 60 crores for all products.

Now let us classify the turnover according to wafers and namkeen.

Wafers 85%
Namkeens 15%

PRODUCTS OF THE COMPANY

The product is the most important element by which any firm can prove its efficiency
and improvement of quality product is a symbol of the business firm.

BALAJI WAFERS PVT LTD is engaged in the production of food item they produce 12
different types of snacks items which are as under:-

1 Potato Wafers.
2 Masala Wafers.
3 Banana Wafers.
4 Masala Banana Wafers.
5 Farali Chevdo.
6 Peanuts.
7 Ratlami Sev.
8 Sing Bhujiya.
9 Mung Dal.
10 Chana Dal.
11 Vatana.
12 Masala Sing.

CHART OF PRODUCTION PROCESS

The company has a fully automatic plant especially for the production of wafer the
capacity of this plant is nearly 1200 kgs per hour the production process of wafers is as
under in short.

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 Raw material

Washing

Boiling

Frying

Ingredients

Packing

In case of namkeens there is a special boiling machine the process of different

namkeens are as follows:-

Boiling

Frying

Ingredients

Packing

RESEARCH METHODOLOGY
RESEARCH

Research is the application of human intelligence in systematic manner to a problem. It

may minimize the total uncertainty by intelligence use of the most reliable data available in
the organization.

According to P.V. Young we may define research methodology as scientific undertaking

which by means of logical and systematized method, aims to discover new facts.

STEPS IN RESEARCH METHODOLOGY:-

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 1. Selection or choice of research problem.
2. Understanding the research problem.
3. Collection and review of knowledge of written material.
4. Selection of the most promising method of solution.
5. Listing and selection of different tools of data collection.
6. Execution of research plan.
7. Coding and processing of research data.
8. Preparation of the brief report.
9. Preparation of the final report.

SOURCES OF DATA

There are different sources of collecting data before deciding the sources to collect the
data one has to make a proper planning of investigation and purpose of inquiry following are
the sources of collection of data.

S P
o r
u i
m r
ca
e r
sy
o s
o f
d u
a r
ct
a e
s

24
 INTERNAL SOURCES

Such type of information is always available in books of organization e.g. sales,

production, salary and wages etc.

EXTERNAL SOURCES

This type of information is collected from outside agencies hence it is called data
collected from external sources primary data are original and first hand information while
secondary data are second hand information already prepare or collected in the previous
research.

Methods of collecting primary data

1. Direct personal interview
2. Indirect personal interview
3. Information from correspondence
4. Mailed questionnaires
5. Questionnaires to be filled by the enumerators

METHOD FOR COLLECTING SECONDARY DATA

1. Government publication
2. Publication of international organization (World Bank, U.N.O, I.M.F etc)
3. Semi official publication
4. Reports of committee and commission
5. Private publication
6. Magazines and journals and newspapers
7. Research institutions
8. Annual report of joint stock companies

My attempt to research was quite simple and straight forward first of all the list of
questions was prepared by me under guidance of our professors an then I asked many
questions regarding advertising to marketing manager the main advantages of this method
are that accurate information can be collected and personal conduct becomes possible.

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 QUESTIONNAIRE

1. What is the history of the unit?

2. How much it has developed till now?

3. What was the year of establishment?

4. Where is its head office?

5. Who are the bankers of the unit?

6. What is the nature of the product?

7. What is its production capacity?

8. What is the size and form of the unit?

9. What are the goals \ objectives and mission of the unit?

10. What is the time keeping system?

11. What are the reasons for the location of the unit?

12. What are the facilities given to your employees?

13. What are the products of the company and what is its total turnover?

14. What is the production process of the products?

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 MARKETING DEPARTMENT

Sr No Particulars Page No

31
1 Introduction

32
2 Organization of marketing Department

33
3 Product Planning

34
4 Pricing Policy

36
5 Target Audience And Competitors

37
6 Advertisement

38
7 Channel Of Distribution

39
8 Marketing Research

40
9 Branding, Packing ,And Slogan

41
10 Questionnaire

27
 INTRODUCTION

The functioning activity of marketing department starts when the product reaches the
market form the production unit Phillip Kotler defines market as a market is an area for
potential economics.

The shortest definition of marketing is meeting the customers needs profitably the
company should have a very efficient and excellent marketing department which tries to
provide maximum satisfaction to the customers while having reasonable profit on the other
hand.

In BALAJI WAFERS PVT LTD marketing has also vital importance its marketing
department is very systematic the marketing manager Mr. Nayan tank is very hard working
and experienced person. He operates marketing department and all the marketing activities
of BALAJI WAFERS PVT LTD.

ORGANIZATION STRUCTURE

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 Marketing is essential for all the organizations marketing is the tool by which an
industry can earn profit by selling product. It is true, nothing happens I our economy until
somebody sell the product as seeing the importance of marketing its organization structure
must be well prepared the flow of authority is from upward to downward and the flow of
responsibility is from down ward to upward be necessary.

Chairman

Managing directors

Director

Marketing manager

Area wise sales man

PRODUCT PLANNING
Product planning means the planning for the product that is to decide what type of
production is to be produced or what needs or requirement the product has to satisfy and for
whom the product is meant. Product planning is an important concept for any industry. Every
industry must plan its products as which result profitable for the company and satisfy the
consumer wants

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 So far as Balaji Wafers is concerned it mainly produces

1. Potato Wafers
2. Masala Potato Wafers
3. Banana Wafers
4. Banana Masala Wafers
5. Farali Chevdo
6. Ratlami Sev
7. Sing Bhujiya
8. Chana Dal
9. Peanuts
10. Mung dal
11. Vatana
12. Masala Sing

It plans its product in order to maintain existing customers in fact BALAJI WAFERS PVT
LTD does not require much of product planning it has a very good marketing network and
also a very good market for its product.

PRICING POLICY
Out of 6 Ps of marketing mix pricing is one of them price of the product is main
element in any organization. Therefore, decision regarding price is the most vital decision for
a marketing manager. Right price can promote sales of the company. While wrong price
affects the sales of the company largely, so mixing of price is more important than all other
tasks.

Pricing is an important element of the marketing department. a company has to setup

the pricing policy considering so many factors such as demand, competition, government
interference etc even company has its own pricing policy.

BALAJI WAFERS PVT LTD is in concerned the company tries to keep least prices than
competitors price lower prices are there because of their minimum advertisement cost. The
company has adopted retail pricing policy under the policy the company binds the retailers
to sale the branded goods at the fixed rate decided.

30
 The company gives fixed commission to dealers the catalogue of price is given as
follows:-

31
 PRICE LIST

TARGET AUDIENCE AND COMPETITORS.

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 TARGET AUDIENCE

The target customers means the target is fixed based on level of customers age, sex,
needs, wants, demand, competition, and changing fashion of the society.

As far as Balaji Wafers is concerned the market of the company is evolved and large
the product of BALAJI" is a food product so the main audience of the company is children
and young people.

COMPETITORS

The following are the competitors of BALAJI WAFERS PVT LTD

1. Ruffles Lays
2. Uncle Chips
3. Samrat
4. Laher
5. Kurkure

ADVERTISEMENT

Advertisement is an important aspect in marketing. It is concerned with the

preparation of visual and oral messages for making people aware of and favorably inclined
towards product, brand, service, quality and institution and so on. The ultimate aim of
advertising is to contribute towards increase sales and to increase profit. It is a specialized
technique of popularizing the product and is indispensable in the marketing of goods.

33
 Advertising is a powerful promotion tool to establish and retain brand loyalty, whether
a company is introducing new produces or expanding the existing one. Advertising is
inevitable in this modern competition market. It can be done through various ways.

So far as BALAJI is concerned it also spent a good amount on advertising. It makes

advertising by following ways:-

1. Lighting board
2. Banners
3. Kitchen
4. Calendar
5. Wall painting
6. Wall clock

CHANNEL OF DISTRIBUTION
Channel of distribution is the route or ways through which goods or services move from
the place of production to place of consumption. In modern marketing so many channel of
distribution exist.
Channel of distribution have a vital role especially in the distribution of consumer
goods. The most innovative product offered as an attractive price world is of no use unless
there is as efficient distribution system.
So far as Balaji Wafers is concerned its product is a consumer product so it mainly sale
the product directly to its dealers and distributor not to consumer. However it has also a big
distribution network at various places in Gujarat
In case BALAJI WAFERS PVT LTD transportation and dispatch activities are performed
by carry and forward agencies. The names of carry and forward agencies and their areas are
given below

Kataria enterprise:-

34
 Suarashtra north Gujarat and south Gujarat
Swami Lilasha enterprise:-
Kutch
Atmiya agencies:-
Rajkot & nearest area
There are total 175dealers of BALAJI WAFERS PVT ltd in all over Gujarat we can show the
channel of distribution of the company is as follows
Company

Carry and forward department

Distributor

Dealers

Retailers

Consumers

MARKETING RESEARCH
Marketing research is the systematic collection analysis and separation of idea and
reading and relevant marketing situation facing the company it is highly necessary in this
modern competitive age.

A company can conduct marketing research in different ways company can hire a
marketing research firm also however, most of the large companies have their own
marketing research department because in this competitive age no firm can remain careless
about a single change in market.

BALAJI WAFERS PVT LTD has its own research and development department which is
handled by Mr. Keyur Virani marketing research manager prepares actual reports about the
market and submit the marketing research manager and to understand the problems
regarding marketing.

Research is conducted indifferent marketing factors like product and service, sales,
advertising, pricing, distribution packing etc.

35
36
 BRANDING, PACKING AND SLOGAN

BRANDING
The word brand is a comprehensive term. The brand is to name or mark is a proof of
ownership it means a signor symbol of quality. it is the best means of advertising and
positioning in the market branding is the best means of capturing and retaining the
consumer demand in a competitive market the marketer can create brand equity, brand
loyalty and brand image for his products only through branding
BALAJI WAFERS PVT LTD has the brand name as BALAJI.

PACKAGING
packaging may be defined as the general group of activities in the planning of a
product these activities concentrate on formulating a design of the package and producing
an appropriate and attractive container or wrapper for a product the container itself can act
a forceful though silent and colorful salesman at the point of purchase or an effective
medium of advertisement encouraging impulse buying many a time , package design itself
can act as a register brand, packaging is necessary to present flowing out of such liquid. It is
essential to maintain freshness and quality; it can prevent the danger of adulteration
In BALAJI the packing is done by fully automatic packing machine. They are able to
prepare 180 to 100 packs in 1 minute.

SLOGANS
The entire well known companies have selected an effective and meaningful slogan to
communicate with their customer about the product in very few words it is the explanation of
the product in one line in emotional way the slogans with right meaning attract the
consumer to purchase the particular product forever.
Balaji has the following slogans:-
IN ENGLISH

Any time crunchy

All time fresh
IN GUJARATI
Jyare pan khav karkari ane taji

QUESTIONNAIRE

1. What is the structure of marketing department?

2. In which way product planning is done?

3. What is your pricing policy?

37
 4. Who are the target audience and competitors?

5. What is the advertising policy of the company?

6. Which type of channel of distribution do you follow?

7. Is marketing research done in your company?

8. If yes, how do you do the marketing research?

9. What is the brand of product?

10. What are the slogans for the product selling?

11. What type of packing is done for various products?

CHANNEL OF DISTRIBUTION

CONTENTS

Sr No Particulars Page No

42
1 Channel Of Distribution

44

38
 2 Reason For Selecting The Topic

65
3 Physical Distribution

TABLE OF CONTENTS
FOR
CHANNEL OF DISTRIBUTION

Sr No Particulars Page No

1 Concept Of Channel Of Distribution 45

2 Role Of Channel Of Distribution 46

3 Level Of Channel Of Distribution 47

4 Channel Decision 50

39
 5 Marketing Middleman 52

6 Dealer , Distributor And Carry And 54

Forward Agents

7 Terms And Conditions /Rules And 56

Regulations

8 Compensation To Channel Member 57

9 Motivation To Channel Member 58

10 Evaluation And Performance 59

11 Channel Conflict And Solution 60

12 Advertising Through Channel 62

13 Questionnaire 64

REASON FOR SELECTING THE TOPIC

Marketing management is one of the most complexes and challenging field of

endeavor contains in itself various functions like:-

Product mix
Price
Advertising
Personal selling
Consumer behavior
Marketing research
Channel of distribution etc

From all the functions mentioned above all are equally important for capturing
sufficient market. As far as channel of distribution is concerned it is internally related by
channel of distribution and physical distribution both. The goods and services available must
be matched against the wants desires and need of users. Channel of distribution serves to
achieve this meeting of goods between producer and users\ customers i.e., why I have
chosen the distribution channel as a topic of training report because without this no
marketing function can be done if the goods are not able to reach its ultimate consumer.

40
 CONCEPT OF CHANNEL OF DISTRIBUTION
Channel of distribution is a way or path through which goods transfer from the pace of
production to the place of consumption. In other words channel of distribution is a pipeline
by which customer or user can obtain. The product which can satisfy their needs.
The producers cannot be in the market at all the time and in every places for selling
their each units produced. Because they have no such time and again it costs them too
much to go in the market and sell their product for this difficulty they take the help of
middleman which include wholesalers, retailers, dealers, agents, distributors etc. all of these
middlemen united create a channel through which goods are distributed smoothly. The
middlemen are well acquitted with the position of market and hence they can distribute the
companys product easily.

According to Philip Kotler, marketing channel is set of interdependent organization

which is involved in the process of making a product or service available for use of
consumption.

Distribution system is divided into two parts or division they are:-

1 channel of distribution.
2 physical distributions.
A distribution channel moves goods from producer to consumers. It overcomes the
major time, place and possession gaps that separate goods and services from those who
would use them. Members of the marketing perform many key factors, which are outlined as
follows:-

Help in production work.

Financing the producers.
Aid in contribution.
Promotional activities.
Matching demand and supply.

41
 Balaji Wafers is doing all these activities in well coordinated style. All the persons
related with distribution channel are well experienced.

ROLE \ OBJECTIVES OF CHANNEL OF DISTRIBUTION

In an ever widening market, particularly in consumer goods market, distribution
channel have distinctive role in the successful implementation of marketing plans and
strategies. These channels perform the following marketing functions in the machinery of
distribution.

1. The searching out of buyers and sellers (contracting).

2. Matching goods to the requirement of the market (merchandising).

3. Offering product in the form of assortment of packages of item usable and acceptable
by the consumers.

4. Persuading and influencing the prospective buyer to favor a certain product and its
maker (personal selling \ sales promotion).

5. Implementation of pricing strategies in such a way that would be accepted to the

buyers and ensures effective distribution.

6. Looking after all the physical distribution functions.

7. Participating activity on the creating and establishment of market for a new product

8. Offering pre and after sale services to customers

9. Transferring of new technology to the user along with the supply of product and
playing the role of change agent.

10. Provide feedback, information and marketing intelligence and sales forecasting
services for their regions to their suppliers.

42
 LEVEL OF CHANNEL OF DISTRIBUTION
The number of channel level can characterize the marketing channel. Each
intermediary that performs work in bringing the products to the final buyer constitutes a
channel level. Since the producer and the final customer both perform work, they are part of
every channel. There are following type of channel of distribution.

Zero level
A zero level channel is also called the direct marketing channel it consists of a
manufacturer, selling directly to the final consumer. The major zero level channels are door
to door sales, home parties, mail order etc. it depends on the type and nature of product and
the requirement of the customer its diagram is as follows
Manufacturer

Customer

One level
A one level channel contains one selling intermediary such as a retailer as most of the
manufacturer uses only the retailing system. In this distribution system, the manufacturer
supplies goods to the retailer only with sufficient guidance relating to the use of product and
so on. Its diagram is as follows:-
Manufacturer

Retailer

Customer

Two levels
A two level channel consist of two intermediaries. In consumer markets, they are
typically a dealer wholesaler and retailer, when the manufacturer wants to cover a
comparatively wider area of markets they use this channel of distribution. Its diagram is as
follows:-

43
 Manufacturer

Dealer

Retailer

Customer

Three levels
A three levels channel contains three intermediaries. In a company which wants to ,
distribute ,its product in a nationalized way \ or in a national level market they have to apply
this channel of distribution under such circumstance s dealers are appointed in various
regions, subsequently the product is moved to the customers through retailers. Its diagram
is as follows:-
Manufacturer

Dealer

Sub dealer

Retailer

Customer

Multi level
Multinational companies which are having their distribution system in several
countries, have to follow a multi channel. It may include four or more intermediaries make
the product and reach to the customers. This method is convenient when; the customers are
evolved in a huge region its diagram is as follows:-
Manufacturer
Wholesaler

Dealer
Sub dealer

Retailer
Customer

So far as Balaji Wafers is concerned the product of this company is food product. They
adopt a multilevel distribution system, which is as follows:-

Company

Carry and forward department

Distributors

44
 Dealers

Retailers

Consumers

The company is having four distributors and 225 dealers.

CHANNEL DECISION
Channel decision means the appointment of or selection regarding channel member in
an appropriate manner. The first question arising in making a channel design is whether you
want direct sales to customer or indirect sales? If the firm chooses the indirect rate, it must
be considered that problems such as the number of intermediaries and methods to be
employed in motivating and controlling the intermediaries. The selection of these
intermediaries begins with the knowledge of ultimate customers their needs and desires for
distribution services.
The number of intermediaries employed will be determined by customer conveniences
and economies of exclusive distribution. The company must choose whether to attempt
extensive, selective or exclusive distribution or combination of all the three types of

45
distribution. The decision is made after careful analysis of product, consumer, dealers,
company objectives and policies and the conflict with in the channels and any other relevant
factors.
As relating to BALAJI WAFERS PVT LTD it considers the indirect extensive distribution
channel. When the necessity of appointment of dealers and other channel member arises
due to large area of market and more demand the company selects a channel member by
following ways.

1. They give first preference to the parties who made application in past.
2. If there is no application, the company gives advertisement by appropriate advertising
sources.
3. After giving advertisement the application is received in prescribed form by fax, post of
nay other communication media, then it is sorted out and eligible application is filed.

46
4. In the next stage the application is referred in detail, which is filed in above stage and
the channel is selected after making the following inquiry.
I. Inquiring through letter
II. Inquiring directly.
III. Checking the reference form other persons
IV. Inquiring the financial position of the applicant
V. Knowing the market reputation of person as well as firm

VI. Checking the history and background of the firm and inquiring whether it has the
vehicle facility or not?
VII. Whether they are having the godown facility because its must requirement.

5. In the last stage, after appointing dealers deposit is taken and they are introduced about the
rules and regulation which channel members have to follow.

47
 MARKETING MIDDLEMEN
In essence, a channel of distribution include the original producer the final buyer and
many middleman either wholesaler or those institution or those institution or individual in
the channel, which either take a little to the goods or negotiate of sell in the capacity of an
agent or broker. Thus, from the marketing point of view the middlemen and intermediaries
are the same. In all commodity markets, whether primary or central, we have lots of
middlemen acting as essential functionaries.
On the basis of taking titles to goods these middlemen are divided into parts:-

1) AGENT MIDDLEMEN
They are middlemen who do not take a little to goods, but help in the transfer of the title the
agent are classified into
Broker
Commission agent
Sole selling agent
Manufacturer agent

2) MERCHANDISING MIDDLEMAN
These intermediaries take both possession and title to goods in their own name. They are
classified as into as follows:-

DEALER
Dealers are person who buy or resale product at either retailer or wholesaler
basis.

DISTRIBUTOR\WHOLESALER
It is a general term used to mean wholesalers.

STOCKIEST
This is a wholesaler but takes less active role compared to distributor.

RETAILERS

A merchant or occasionally an agent whose business is selling directly to the ultimate

consumer.

So far as BALAJI WAFERS PVT LTD is concerned it utilizes the merchant middlemen as a
channel member. It includes the following intermediaries whose chart representation is as
follows:-

Company

Carry and forward department

48
 Distributors

Dealers

Retailers

Consumers

DEALERS & DISTRIBUTORS &CARRY & FORWARD AGENTS

1) DEALERS AND DISTRIBUTORS

By appropriate procedure the company appoints a dealer. This company has appointed
many dealers and distributors all over the Gujarat. The company has 225 dealers and 4
distributors the company gives fixed commission on purchase the rate of commission is 7 to
7.5% there are no fixed quotas or no force to sell the minimum number of products. They
provide service to dealers as per the demand and the delivery of the goods is done any
where in Gujarat just within 2 days that is within 48 hours the name of distributors and some
dealers of the company are :-

49
 LIST OF DISTRIBUTORS

1. Mr. Vallabhbhai Kataria

Kataria Enterprise 3. Mr. Anil Chandani
Sole Distributor Swami Lilasa Enterprise
Saurashtra Sole Distributor
Gujarat Kutch

2. Mr. Paras Kataria 4. Mr. Rimal Kataria

Kataria Enterprise Kataria marketing consultancy
Sole Distributor Sole Distributor
Saurashtra Gujarat
Gujarat

DEALERS

1. Mr. Hareshbhai Shanghvi 6. Mr. Ashvin

Vimal Agency Ashvin Agency
Junagadh Amreli

2. Mr. Mahebub Sorvani 7. Mr. Mukesh

Akash Agency Shrinathji Agency
Porbandar Rajkot

3. Mr. Pashidbhai
Ramis Sales Agency
Surendranagar 8. Mr. Deepak
D. K. Sales Agency
4. Mr. Maheshbhai Mirani Rajkot
Jamini Enterprise
Ahmedabad 9. Mr. Sasin Shah
Parthil Traders
Ahmedabad

5. Mr. Sanjay &Rakesh 10. Mr. Prakash

Atmiya Sales Agency Balaji Sales Agency
Rajkot Veraval

50
 CARRY AND FORWARD AGENTS

In addition to dealers, company has appointed some carry and forward agents
carry and forward agent play a vital role in passing goods from company to dealers.
Dealers inform carry and forward agents and carry and forward agents inform the
company about the material requisitions, and it is the responsibility of carry and
forward agents to provide goods to the dealers.

Kataria enterprise is the main carry and forward agent and it is also the
marketing consultancy firm for the BALAJI WAFERS PVT LTD which is situated in Rajkot.

TERMS AND CONDITIONS

The producer must determine the conditions and responsibilities of the
participating channel members. The main element in the trade relation mix is pricing,
policies, condition of sales territorial rights and specific services to be performed by
each party.

The BALAJI WAFERS PVT LTD has the following type of rules and regulations to
channel members.
1. The delivery of goods must be delivered to every retailer for two times within a
week.
2. The order must be placed or registered before 24 hours of route day.
3. The dealers have not been consulted with manufacture as sales the wafers and
namkeen of any other company.
4. The dealer must insist to sales all the product of company.
5. They should be appropriately utilizing the allotted advertising materials.
6. When the goods are reach according to order as requirement the payment must
be made by bank draft of by cash.
7. Order should be registered regularly.
 8. The price of the product should be taken as per the price offered or fixed by the
company at some destination.
9. Every dealer must be submitting a retailers list of his allotted area regularly to
company, so that the company takes a decision regarding the advertising and
area.
10. The marketing must be made only within the boundary of area allotted or
fixed by the company.
If channel member breach any of the above rules and regulation of the company
can take back a dealership. Generally this kind of deal may not be arising. In case this
kind of problem arise then company first give chance to rectify the error and take
appropriate decision regarding dealership.

COMPENSATION TO CHANNEL MEMBERS

The channel members should be given certain compensation for the service they
provide to the company of course, it works as a source of motivation to channel
members. If proper and fair compensation is provided to channel members then the
intermediaries will work to its utmost efficiency and good morale.

Compensation is made of several elements a fixed amount a variable amount,

expenses and price benefit and salary that give to middlemen some fixed stable
income. The variable amount, which might be commission or bonus, is based on sales
performance.

So far as BALAJI WAFERS PVT LTD is concerned this company gives the fixed
salary to its representatives. At the end of the year company also provide bonus and
other facility like gift and articles, wafers and other food product at concession rate,
first aid facility etc.

In case of dealers, there is no requirement of any kind of compensation because

the company not imposed any kind of force to sale fixed quota or achieves a particular
target. The reason is that the company also gives the fixed commission on the
purchase quantity whether the quantity is large or small. The company provides the
goods to its dealer directly within 48 hours after arriving or received the order. The
company also provides the best quality and fresh goods in very best packing to dealer
at right time and right place as per the requirement.
 MOTIVATION TO CHANNEL MEMBERS
Intermediaries must be continuously motivated to their best job. The terms that
lead them to join the channel provide some motivation stimulation channel member to
top performance must start with understanding of the intermediarys needs and wants.
Channel member are very important part of the company without channel of
distribution, perhaps it is impossible to reach the produced goods final consumer
properly. Therefore the company can sell its product in the market by their channel
member with effectiveness and efficiently. That is why every company must be
motivated their channel members by different way like:-

1. Higher margin
2. Special allowance
3. Sales contests etc.
Related to BALAJI WAFERS PVT LTD it provides positive motivation to their channel
member y following way:-
1. The company also motivate to their channel member by seasonal scheme
2. Motivated by providing calendars high lighting BALAJIs product
3. They also arrange the dealers diaro or dealers meeting in a year at some
destination.
4. Company also motivated to their dealers by accepting or receiving the advice
forms them for decision making work.
5. The company also motivates its dealers by solving their problem and fulfills their
requirement.
6. Company also does advertisement by wall painting and by other sources on the
other hand, company gives stickers, light board, banners, kitchen, metal board
etc so dealers display it and increase the sales very easily. And also customer
aware about the dealers shop.
7. The company also provides the guarantee of 100% replacement from customers;
company solves the conflict and replaces the fresh and qualitative goods. In this
way dealer have confidence to solve their customers problem.
EVALUATION OF PERFORMANCE OF CHANNEL MEMBERS

The producer must periodically evaluate middlemen performance against each

standard as sales quota attainment, average inventory level, customer delivery time,
treatment of damaged and lost goods, co-operation in promotion and training
programs and middleman services owned to the customer. The producers will discover
an occasion that too much is being paid to particular middleman for what they are
actually doing.

In BALAJI WAFERS PVT LTD it evaluates the performance of channel by market

survey, direct contracting with channel member to know the demand fluctuation and
also by retailers and consumer opinion. The company evaluates the performance of
channel member with following objectives:-
 1. Whether services is regularly provided 2 times with a week to retailer or not.

2. To know the behavioral aspect of dealers with company as well as with the
retailers.

3. To know the name and fame of the company in the public mind.

4. To know the market condition of the companys product.

5. To know whether the dealer follows the rules and regulation contracted with
company at the time of taking a dealership.

6. To know the information regarding dealers about how they sale other products of
company.

7. To know whether the dealers utilize the advertising sources provided to them or
not.

Thus all the objectives are considered at the time of evaluating the performance of the
channel member by above prescribed way.

CHANNEL CONFLICT AND SOLUTION

No matter how well channel are designed and managed, there will be some
conflict, if for no other reason then the interest of independent business enterprise do
not always coincide. It is important to distinguish the different courses that might
provide channel conflict. Some courses are easy to resolve other more conflict.
A major course is goal in compatibility e.g. the manufacturer may want to
achieve rapid market growth through low price policy. The dealers, on the other hand
may perform to work with high morale and loyalty. This is difficult to solve.
The conflict might arise because of the great dependence of the middlemen on
the producer. Some times conflict arises on price decision point and some times
conflict arises on supply of goods and services provided by dealers after selling the
products.
During my visit in BALAJI WAFERS PVT LTD I never see any kind of conflict or
problem in channel of distribution. It is possible only because the company provide
speedy and supply of goods according to needs of the channel member. There is not
any kind of pushing system for instance, if dealer purchase particular product then
other product must be purchased in some quantity.
In case if any problem arises among channel as regarding services, supply of
goods etc and any complain arrived from customer then the company solves this
conflict and complaint by following manner.
1. First of all finding what kind of problem is arising.
2. In second stage the problem is analyzed as:-
i. Why this problem arises?
 ii. By whom this problem arises?
iii. When and where this problem arises?
3. In the next stage, after analyzing the problem company contacted to responsible
person and aware them about this problem and give advice to solve that kind of error
and also give chance that this kind of conflict will not arise.

4. In next stage after given the chance to rectify the error if channel member not make
any kind of solution or arrangement according to the situation company takes back
dealership form those people.

5. If the dealers have any problem about the company and other miscellaneous problem
then it is solved in dealer meeting, which arrange in a year at some destination.

6. If the channel members have any other problem then company itself makes contact
direct to those channel members and tries to solve their problem in best possible
manner.
 ADVERTISING THROUGH CHANNEL
The main purpose of every commercial organization is to promote sales because
it is only way to commercialize the product. That is why advertising is a main and
important tool to promote the product.
Advertising is one of the major tools of companies use to direct persuasive
communication to target buyers and public. We define advertising as:-
Any paid form of non personal presentation and promotion of ideas, goods or
services by an identified sponsor.
Advertising is a form of mass communication. A sponsor who wants to
communicate about his product or service to his customers pays it. They are different
media for advertising the product, they are:-

1. Print media which involves :-

i. Newspapers
ii. Magazines
iii. Business books

2. Outdoor publicity which involves

i. Posters
ii. Wall paintings
iii. Electric sign board
iv. Sky writing
v. Sandwich man
vi. Vehicle advertisement

3. Direct mailing postal advertising which involves

i. Leaflets
ii. Sales letter or post cards
iii. Folders
iv. Booklets
v. Catalogue
vi. Brochures

4. Audio-visuals advertising which involves:-

i. Radio advertising
ii. Television advertising

5. Film advertising which involves:-

i. Documentary advertising
ii. Advertising film
iii. Sponsored advertising.

Different media are selected depending upon the following factors:-

1. The financial allocation for advertising.
2. The nature of product and demand for it.
3. The type of products, their location and other characteristics.
 4. The nature of competition
5. Cost of media, cooperation and promotional aids offered by media circular.
Many companies allow to dealers to advertise the product on behalf of the company.
As far as BALAJI WAFERS PVT LTD is concerned it advertises its product by different media
as:-
1. Stickers
2. Light board
3. Banners
4. Kitchen
5. Metal board
6. Wall painting etc.

BENEFITS TO DEALERS BY ADVERTISING

1. Easy sale of product is possible since consumer is aware of the product and its quality.
2. It supplements the selling activities
3. The dealers a like because they need not spent anything for advertising of already a
well advertised product share the reputation created.
4. It ensures more economical selling because selling overhead is reduced.
5. It enables them to have product information.

QUESTIONNAIRE

1. What is the level of channel of distribution?

2. How the channel decision taken?

3. Who are the marketing middlemen of the company?

4. Who are the dealers of the company?

5. Who are the distributors of the company?

6. Who are the carry and forward agents of the company?

7. What are the rules and regulations for channel of distribution?

8. What is the compensation to channel member?

9. How do you evaluate the performance of channel member?

10. How do you deal with the channel conflict?

11. In which way do you advertise through channel?

 PHYSICAL DISTRIBUTION SYSTEM

Sr. No Particulars Page No

1 Concept Of Physical Distribution System 66

2 Objective Of Physical Distribution System 67

3 Cost Of Distribution 68

4 Order Processing System 69

5 Inventory Control 70

6 Ware Housing Facility 71

7 Transportation 72

8 Questionnaire 73
 CONCEPT OF PHYSICAL DISTRIBUTION SYSTEM
The marketing process is not entirely simply by creating superb product and by
creating a customer by aggressive salesmanship delivering the product to the customer at
the right time and place is an equally important function in marketing. In the process of
marketing this vital function is called physical distribution.

A critical element in the distribution strength involves the actual movement of the
goods produced after their production and before their consumption on before they reach in
the hands of the final consumers. This function includes various activities which are as
under:-

1. Inventory control

2. Material handling

3. Packing

4. Warehousing

5. Transportation

6. Insurance

7. Banking services etc.

The producers and dealers perform these activities. Efficiency in the physical distribution
significantly influences a companys channel for the marketing success.
 OBJECTIVE EFFECT
OF
PHYSICAL DISTRIBUTION SYSTEM
Physical distribution system also effects the decision on channel of distribution. If the
product requires storage, it should be sold out through dealers who own their own godown or
storage facilities. If the company decides to manage their own warehouses. What type of
transport facility should be arranged to carry the goods to the warehouses of its own or of
middlemen. These factors should be considered while taking decision on channel of
distribution.

In BALAJI WAFERS PVT LTD the raw materials are to be supplied by the trucks from the
various sources. After making various products according the demand or orders, goods are
supplied to carry and forward and distributors goods supply to dealers and the customers by
rickshaws or by truck.

New method and technique have been developed that make the physical distribution
challenging task. The activity of physical distribution is necessary in the modern marketing
due to,

1. To minimize the cost of transportation

2. To minimize the cost of handling
3. To control over inventory
4. To minimize customer services
5. To make goods available to customer at the right time and place.
6. To follow the good order of processing system.

Thus the development of physical distribution facility has made the production feasible
through out the year at lower cost of production and distribution.
 COST OF DISTRIBUTION

For facilitating the flow of distribution of goods from producers to consumers

appropriate channel of distribution is very important for smoothly running of channel of
distribution, proper maintenance, implementation and control, efficient handling should be
needed so effective and efficient handling of channel of distribution some should be incurred.
Thus every company requires allocating some portion of total cost for channel of distribution
to efficient handling at minimum cost.

Sot far as BALAJI WAFERS PVT LTD is concerned; it has an efficient channel of
distribution. It is provided better service and best quality to its ultimate customers, which is
most indispensable for capturing the more market with full demand. Therefore, to handling
the channel of distribution effectively and efficiently, this company allocated 13.5% of the
total cost of production. Moreover it is well known that this company provide the services to
its dealer with in 48 hours from receiving the order and dealer provides services to its
retailers 2 times within a week
 ORDER PROCESSING SYSTEM
Order processing is considered as the key to customer service and satisfaction. Order
processing includes receiving, recording, filing and assembling of product for dispatch. The
amount of time required from the date of receipt to an order up to the date of dispatch of
goods must be reasonable and as short as possible generally order cycle time must not
exceed eight day.

Markets are now using a computer system to speed up order handling. A firm must
have standard processing of order, this procedure should also include grand of credit
invoicing and collecting of amount.

Order processing procedure affects customer service level in two ways:-

1. It affects order time (interval between two orders)

2. It affects the consistency of uniformity of delivery time.

Generally customer is interested much more in the consistency of delivery time that is
assured delivery within a fixed period always.

As regard to BALAJI WAFERS PVT LTD it has very efficient ordering processing
procedure. It has receiving order from channel member and directly from retailer and
customer also through post, fax, telephone, e-mail and other communication media. After
receiving order it is recorded and filed than goods are dispatched to its dealers according to
his order with orders of other customer of its dealers according to his order with orders of
other customer of its market area who directly send the order to the company.

This company delivered the goods to its dealers only within 48 hours thus according to
my point of view, this company primarily interested in prompt, punctual, safe and reliable
delivery services.
 INVENTORY CONTROL

Inventory is the physical stock of items which organization keeps hand for efficient and
continuous running of a production it reduces investment in inventory but then also
production should not suffer by that decision. It consist of management of raw materials
components parts finished goods, semi-finished goods etc.

The proper procedure of system for controlling over inventory is known as inventory
control generally there are following type of standard in inventory control.

1. The maximum
2. The minimum
3. The ordering point
4. The standard order

So far as BALAJI WAFERS PVT LTD is concerned it has a very good inventory control
system. It has followed an ordering point as standard of inventory control. It purchases a raw
material form various places according to need. If there is excess in raw material then it is
stored in store room, which is situated in location area of the company. However generally
there is no more excess raw material or finished goods than the requirement. Because the
raw material are purchased according the demand of the market.
 WAREHOUSING FACILITY

Storage warehouses are fixed facilities where we store our inventory usually for a
longer period. Warehouse creates time utility and can stabilize price over a certain period. It
can regularly market supplies according to changing market demand time wise. We have
private warehouses owned by user. There are also public firm who sell storage space and
professional firm who sell storage space and perform many warehousing function on
reasonable commission of fee.

In BALAJI WAFERS PVT LTD the main raw material is potato and in the market seeing
the more demand of potatoes the company purchases it in advance in required quantity
because all the raw materials are food items in nature there are chances of being affected by
the natural factors like heat, moisture, humidity which is harmful to these raw materials.
Therefore they are stored in such a way in required quantity that they dont get damaged
from the effects of climatic and other atmospheric changes.

The company is not having its own warehouse they utilize the public warehouse for
getting the required raw materials in time for instance it has a small godown within the
company promises which has the sufficient stock stored for continuous production process.
 TRANSPORTATION
Marketers need to concern with their companys transportation decision transportation
choice will affect the product pricing, on time delivery, performance and the condition of the
goods when they arrive, all of which affect the consumer satisfaction so transportation policy
of the company should be such which ministers the companies transportation cost which is
included in the total product cost of the unit produced. So it should be such which minimizes
the total product cost and at the same time able to maximize the customer satisfaction by
providing right time delivery.

There are many modes of transportation

1. Roadways
2. Seaways
3. Airways
4. Railways

BALAJI WAFERS PVT LTD uses only roadway transportation for the movement of raw
materials before and after production process for transporting goods to company and to
customer or its channel member and its ultimate customer through dealers.
 QUESTIONNAIRE

1. What is the cost of distribution?

2. How does the order processing system works?

3. How does the inventory control managed in the unit?

4. Do you have a warehouse of your own?

5. What kind of transport facility the company is using?

 FUTURE PLAN

Future plan means the company forecasts about its future goals and tries to achieve
them at minimum cost and in the better way. Without any future target any company cannot
run for long period. Though future is always uncertain but we can make it possible as our
desire by making various creative efforts.

BALAJI WAFERS PVT LTD has achieved great success in establishing good brand image,
prestige and reputation over the consumer market.

BALAJI WAFERS PVT LTD located recently a new plant with high technology and
ultramodern computerized in Rajkot at Kalawad road. The company is planning to sell its
product at other states like Maharashtra, Rajasthan, and Goa etc.
 CONCLUSION

BALAJI WAFERS PVT LTD is the adventure of Gujarati Family. It is located at GIDC Rajkot
and almost all the cities of Gujarat they have their dealers.

In this company the internal relation between the workers and management are very
well. All the workers and management behave with each other as family members. It is the
plus point of the company. The management of the company is well planned and very
effective.

On the point of completing this visit report I am concluding that BALAJI WAFERS PVT
LTD is very well developed, well organized and progressive company.

My heartily best wishes are always with them for their great sparkling and bright
future.
 SWOT ANALYSIS:-
The following are the strength, weakness, opportunity, and threats of BALAJI WAFERS
PVT LTD:-

STRENGTH
1. Balaji is an established brand in region of Gujarat hence it enjoy very good brand
name.

2. Balaji has a strong distribution network in Gujarat.

3. Balaji is the first company to launch the wafers in Gujarat market.
4. Company gives healthy profit margin to retailers so they are also very satisfied
with companys product.

5. To maintain quality at any cost is the first and strong object of the company.
6. Balaji having the one and only fully automatic plant for production in Gujarat.
7. Balaji has a long experience in relating region of Gujarat. Hence it can use them
as an advantage to establish its leaders in the market.

WEAKNESS
1. Balaji does not aggressively advertise on T.V. or in other media.
2. In this company there is no facility of own warehouse.
 OPPORTUNITY
1. Balaji is a well known established brand in wafer market in Gujarat.
Hence it can use its brand name further established itself in the national market.
2. As the real income of the people increases day by day, there are lots of
avenues that can be explored by the company to attract potential market in the
urban, semi urban and rural areas. The company is now launching the products
in Maharashtra state.

THREATS:-

Balaji switching amongst consumer has increased due to new entrances offering
various products in the market so it may be possible that the regular customer of BALAJI
start trying to buy other brands of wafer. Hence the company must keep upgrading its
product list to suit and match the faster and ever changing demand of customer and to give
them maximum satisfaction.
 FINDINGS AND RECOMMENDATIONS:-

FINDINGS

1) AVAILABILITY OF PRODUCT
In relation to this question all the retailers replied positively, which shows 100%
availability of all the products of BALAJI on time without any delay.

2) POPULARITY OF THE PRODUCT

When I asked about customers preference or about the product highly demanded by
the customers, the retailers said that

a. Highest demand is for potato chips

b. Second is for Farali Chevdo
c. Third is for namkeens like ratlami sev etc.
d. Fourth is for sing.

3) OPTION FOR UNSOLD GOODS

For unsold goods dealers should provide option like money back or changing of the
stock etc. BALAJI dealers also give the option of replacement it is one of the good
techniques of promoting the product.

All the retailers got replacement facility however in reality most of the retailers said
that there hasnt been the case of unsold stock.
 RECOMMENDATION

BALAJI WAFERS PVT LTD is profit making company. It works smoothly since it is
established there the company follows all the principles of physical distribution and also
follows standard ordering processing system and it has also control the inventory by
appropriate department. The distribution channel of the company works efficiently and
effectively towards achieving the goals with full of confidence and cooperation.

Therefore there is no need for recommendation to the company but I feel that if the
company starts advertising on large scale on television media it can expand the business
from Gujarat to whole of nation and after that even at international level because the quality
is high of the product so I see a bright future of this company in India.

All my best wishes are with them for sparkling future.

 BIBLIOGRAPHY

1) BOOKS

Marketing Management
Philip Kotler

Marketing Management
Verma and Agarwal

Marketing Management
S.A. Sherlakar.

2) REPORTS

Some old reports for reference.

 LIMITATIONS OF THE REPORT
1. The following are the limitations of my project report

2. The report is prepared for education purpose

3. Much information has been taken from secondary sources; therefore it is quite possible
that it may have some misleading information.

4. The report is affected by personal influence.

5. It is not possible to include each and every information of the company in the report.

6. There may be printing mistakes in the report due to oversight.