Channel of Distribution

INTRODUCTION
Marketing occupies an important position in the organization of a business unit. It is one of the important line activities of business operations. The changes that are taking place in the economy reflect every other field. The job of business has become more complex. Moreover, with the increase in the competition, increase in the need and desires of consumers and widening of markets. The businessman is placed in more difficult position in producing and selling his goods. The performance of other activities felt necessary for the successes and survival of the business organizations. It is in this context the activities of marketing mix came into existence. !rom times immoral history of ceramic industry, days back excavations of "arappa and Mohenjo#$aro proved that there has been India civilization linked with %eramic technology. &oth consumer goods and industrial goods were produced by this industry the sophisticated technology of glazed tiles commences of recent origin. 'ome of the new entrepreneurs entered the ceramic field like 'partech and floated large#scale production with technological advancement. Its products range from bathroom flooring to living room. 'ince the realization of the industry in ()*+, number of entrants has entered with foreign collaborations and with technological evaluations of singles fire, which would lower the fuel cost by ,-.. The length of the firing process and also short time from +/ hours to ( hour where by reducing fuel cost. %eramic tiles are stronger than the Mosaic floors and cheaper than mosaic tiles. %eramic tiles compete with conventional flooring materials such as 0ota and 'hahabad stones and gray cement tiles for the lower end of the market, cement mosaic
Ideal %ollege of 1rts 2 'ciences
1ndhra 3niversity
tiles at the middle market segment and with marble and granite and the upper market segments these are scratch and strain resistant and easy to lay. &ecause they are lighter than conventional flooring. 4n account of their easy maintenance they are expected to the usage in the public places and for elevation purpose as a substitute for paint. Market for ceramic tiles after the de#licensing came a long way with the major players 'partek, which was incorporated with an install capacity of +))-- tones. 1fter the success of 'partek, many companies came into existence into our country. 5egency %eramics limited was set up in 1.6 with technical collaboration of 78904 %4M61:; 9IMIT8$, IT19;. TRENDS '5I T5I6351:8:I 05I'":1 651'1$, managing 'partek ceramic India limited in a move took century wave on the industry by surprise, 'partek ac<uired a controlling interest in the %"8::1I based :aively ceramic and refractions limited , by buying ,-. of he e<uity 'partek bought about =lakhs shares for 5s./- where :aively ceramics and refractions limited sales value is around 5s.(- with an investment of (.+-crores of rupees 'partek was taken over by an organization bigger than it self with facilities for stationary were and tile protection which at current prices product >-crores. &y this ".5.?ohnson has become the largest ceramic times manufacturer in the country. :ow the combined capacity stands at =+,--- tones per annum, which makes ".5.?ohnson larger than spartek on 'omali, 6linking stone. "aving considered the progress of the ceramic industry, this is very vast. It is better to lay down emphasis on one unit for the purpose on the study. 4ne such unselected was 5egency %eramic 9imited @5%9A, which represents one unit of the whole industry. Ideal %ollege of 1rts 2 'ciences / 1ndhra 3niversity
INDUSTRY PROFILE
THE SCENARIO OF CERAMIC INDUSTRY %eramic industry is one of the oldest legacies in the words. It dates back to human civilization. The legacy of ceramic industry can be claimed to have culture still practice as tradition in India sub continent but before Indians could claim as their own, the developed countries gave a new dimension to this industry by mechanizing and computerizing the production with a wide application. 8ven since India began economic planning after independence the trust for infrastructure has always been felt. 4ne of the basic needs for the people that is shelter have always deprived in India. 'ince liberalization in the *-Bs the raising levels in income and the government encouragement in investing in investing in infrastructure and the reduction in interest rates gave a boom to the housing standards. The increasing in real estate business and increase in life styles have increased the business of ceramic tiles. In India the industry was born in ()+* when "25 ?4":'4: with the collaboration of ?ohnson international @3.0A set the first plant for manufacturing wall tiles at Thane, then followed by '69. %eramic industry is market. 'partek revolutionized in industry by introducing floor tiles for the first time in India with many advantages like wider range of colors then the traditional Mosaic tiles demand for floor tiles boomed. This encouraged the entry of many other players like 5egency %eramics, 0hajaria, Murudeshwar %eramics, and &ell %eramics 8tc. in to the floor tile segment. The continuous lowering of excise duties by the government on ceramic tiles from as high as +,. in ()),#)+ budgets to /+. in ())C#)= in the past.
>
1ndhra 3niversity
CHARACTERSTICS OF INDUSTRY
1. WORKING CAPITAL INTENSIVE The raw materials have to be stored in advance. %lay has to be stocked for at least four to six months as mining is not possible during season and also could be heavier for transportation at that time due to absorption. The %ostly glazes, which are imported also, have to be stocked for about four months. %redit periods are so long institutional caterers about )- to (-- $ays as opposed to the >- to >+ days for those serving in the retail segment. The industry being subject to varying tastes, tiles in variety of size and colors have to be stocked the minimum being /- to /+ designs. These entire mean that the working capital cycle of about = and half months of salsasB 2. CAPITAL INTENSIVE 1 minimum investment of rupees (.C- crore is needed to setup new plant. The %apital Intensive nature can also be gauged from the fact, the asset turnover ratio is low -.=- the capacity utilization should also be as high as =+. break#even. 3.POWER AND FUEL INTENSIVE These account for about /-. of the manufacturing cost. 7all tiles consume more fuel, as they are double fired. Denerally natural gas, 96D and naphtha are used as fuel for firing the tiles. %urrently players in north and west like 0hajaria and &ell are at advantage as they access to natural gas of the "6D pipe line. 5egency &asin in addition to have an access to Thatipaka gas pipe line. The gas supply if from 'eptember ()),.
1ndhra 3niversity
4.LOCATION NEAR MARKETS 1s transportation over long distances is costly and profit comes from volumes, nearness to the markets play an important role in profitability 0"1?15I1 and '69 dominate the north, while "25 ?4": '4:, &899 rule the west, M353$8'"715, 58D8:%; and '615T80.
5.BRAND IMAGE/DISTRIBUTION NETWORK 'trong brand image is definitely an entry barrier. 1 large dealer network not only helps in popularizing the brand, but also protects the margins, as realizations are faster in the retail segment.
PRODUCTION TECHNIQUES There are basically two techni<ues used, the new single firing and older double fast firing. 1 third double fast firing is also used less fre<uently. Denerally double firing is batch processing and each batch takes about ,+ hours. 1dvantages are that the size and color variations are minimum, strength is higher and the gloss but the fuel consumption is more leading to higher production cost. There are further three methods in double firing. They are 549985E549985 T3::89ET3::89 T3::89E549985 The 5oller technology is for continuous production. 7hile the Tunnel technology is for batch production. 1s it is generally a continuous process, the processing is reduced to just ,+ minutes and fuel consumption is also lower.
1ndhra 3niversity
!loor tiles are usually manufactured by the single 5oller techni<ues. In India the single 5oller techni<ues was introduced for the first time for floor tiles manufacturing. 7all tiles can double firing technology. 5oller technology is used for bigger size tiles while the Tunnel technology is for smaller size tiles.
SOCIO ECONOMIC ENVIRONMENT AND INDUSTRIAL SCENARIO The ceramic industry during the past few years was registering a fare growth, despite the challenges it face from the unorganized sector and cheap imports. The advanced technology has seen a sustained growth in installed capacity in this sector. %eramic happens to be an energy intensive industry and fuel is an important component that calls for urgent attention. The unit has to operate high#energy efficient furnaces with clean fuels having less pollution emission to attain high <uality and productivity. India has abundant <ualitative raw materials re<uired for making advanced ceramic tiles and also cheap efficient manpower. &ut the major deterrents are the high energy and distribution costs along with the import of glazes and colorants and appropriate advanced technologies. :ow the Dovernment has opened up the imports, there a threat off other 1sian countries dumping their products in India.
MARKET STRUCTURE The international ceramic tile market worth about 5s *-,--- crore and the exports market amounts to 5s /(,--- crores approximately. The exports are growing at the rate of *. to (-.. In India with an estimated market size of 5s ((.>( crores present an even more dismal picture with a share of -.,. of the global market. The exports present an even more dismal picture with a share of -,.. Italy and 'pain dominate the exports with (). and (>. of the global installed capacity.
1ndhra 3niversity
The organized sector in India accounts for *+. and rest by the un organized sector. The unorganized sector is restricted do wall tiles segment and escapes excise duties. The continuous lowering of excise by the government on the ceramic tiles and the optimum. 1s a result many in the industry went on a capacity addition spree. APPLICATION OF CERAMIC TILES %eramic tiles were previously used in the bathrooms as luxury items. 7hen excise duties were high, the ceramic tiles have come a long way under now being used for floor and wall coverings in drawing rooms kitchen and offices and even as decorative hangings, they are hygienic, easy to clean, scratch proof, fire proof, resistant to wear and durable. SEGMENTS OF INDUSTRY The industry can be broadly divided between Mosaic, %eramic and DraniteEMarble materials with )-., +.and +. market share respectively. MOSAIC TILES INDUSTRY Mosaic tiles are cement basic tiles. Marble chips make mosaic. Mosaic is low cost ranging from 5s +to (, per s< feet. Mosaic tiles are short run standing. Mosaic tiles are man marking.
CERAMIC TILES INDUSTRY %eramic tiles are made clay basic tiles. %eramic tiles are made by &all clay, !eadsphar, $olorite and %hips %eramic tiles cost average ranging from 5s (+ to 5s /+ per s<. ft. %eramic tiles are middle run standing.
1ndhra 3niversity
%eramic tiles are man making.
MARBLE / GRANITE TILERS INDUSTRY Marble is natural stone. Marble 2 Mosaic tiles are not acidE alcoholic proof. Marble tiles are costly ranging to 5s /- per /-- s<. ft. Marble is not man marking. Marble tiles are long run standing.
INDUSTRY STRUCTURE 7ith 5s.=/+ crores %eramic Tile industry is made up of /+ players in the organized sector, with six players ruling in the market. These leading companies are "25 ?"4:'4:, '69, '615T80, 0"1?15I1, &899 %851MI%', and M353$8'"715 %851MI%'. The industry is partially concentrated and partially fragmented with the unorganized sector accounting for over (+. of the market. The unorganized sector does not affected by /+. excise duty, which gives them an advantage of pricing the lower, through with an inferior <uality.
EARLIER TRENDS 'ir, T5I6351:8:I 05I'":1 651'1$ @M.$A of '615T80 %851MI% 9T$, the surprise where he ac<uire a controlling interest in the M1$51' based :1$F899; %851MI% 2 58!51%T45I8' 9T$., by buying ,-. of e<uity 2 bought = lakh shares at 5s./- per share. 8ach share value at that time is 5s (-. 7ith an investment of (.+ crores '615T80 became the biggest industry itself. Thus '615T80 became the largest ceramic tiles manufacture in the country and stands
1ndhra 3niversity
at a combined capacity of =+,--- MTs per annum, which makes '615T80 larger than "25 ?"4:'4:. OTHER CERAMIC INDUSTRIES
COMPANY "25 ?4":'4: '6920"1?15I1 '615T80 &899 '61 M1:!58:$I M353$8'"715 45I8:T
COLLABORATION ?4":'4: I:T85:1TI4:19 @3.0A T4$158' '1 @'6I:A %851MI%' TI98' %4M61:;@3'1A %851MI% MI51D8 'ITI: @IT19;A '19MI IM491 @IT19;A '19MI IM91:TI '61 @IT19;A
H!R "OHNSON It is the oldest and has the largest market share in wall tiles segment. 7ith the largest dealer network of C-- and designs could ensure that it continues in its leadership status.
SPA 7ith a long presence in the industry and with second largest dealership network of ,-- commands, second largest share in wall tiles segment, plants both north, west the largest consuming regions as translated in to saving on transportation.
KHA"ARIA CERAMICS
1ndhra 3niversity
It is the only segment player with good market share in both floor and wall tiles 'egment. Its plant being located in the higher dormant regions of north and west, the transportation costs reduced, these advantages will help the company to price its product. IndiaBs first tiles company with I'4G )--/ %ertification.
SPARTEK CERAMICS 4nce a pioneer in its field is now in sad state, with ac<uisition of :eyar India. In $elhi based international ceramics landed the company in a financial mess. 7ith the good brand images and with a dealership network of >-- it has a long road to go.
REGENCY CERAMICS It is a well#established plant with strong brand image and with wide distribution network not only in India but also in many foreign countries. 7ith capacity expansion the 5.%.9 will be a strong competitor in the near future. 5.%.9., which has been set up in ;1:1M union territory, is a technical collaboration with 789%4 %ompany limited, IT19;.
TOTAL MARKET SHARE OF CERAMIC COMPANIES
(-
1ndhra 3niversity
The total market share occupied by all the ceramic companies in India are given belowG C#$%&'( "25 ?"4:'4: 58D8:%; %851MI%' 9IMIT8$ '1M1:; 6I90I:DT4: '615T80 0"1?15I1 &899 M353$8'715 %851MI%' $8%45' 1:1T51? %91; 4T"85' T#)&* M&+,-) S.&+/(.+. (>.,. (+. (-.=. (-.C. *./. =.+. ,.>. /.C. (C.(.
Total market Share

H&R JHONSON
16.1 2.6 4.3 7.5 8.2 10.6 10.7
21.5
REGENCY CERAMICS SAMANY PILKINGTON SPARTEK
13.4
KHAJARIA BELL MURU ES!AR CERAMICS ECORS ANATRAJ CLAY OTHERS
15
%eramic tile is a construction material specifically intends to cover floor 2 wall. %eramic tiles are valued for its durability and beauty .The superior performance of ceramic tiles compared to other building characteristics. AESTHETICS materials is attributed to three main
((
1ndhra 3niversity
%eramic tiles are uniform in size and appearance 9imitless variety of layouts can be achieved .3sing different shapes,sizes ,colours and wide variety of special decorative pieces. SAFETY %eramic tiles are non#flammable. It does not conduct electricity. It does not attract or absorb dust,dirt and dort and grease. It is very hygienic since it is germ#resistant and easily cleaned with soap and water. COMPORT %eramic tiles add to the comfort and convenience of any private area or public space. It has thermal installing and sound proofing <ualities. %eramic tiles are naturally odour#free and do not absorb odours from their surroundings.
TYPES OF CERMICS TILES &ased on the method of manufacture, water absorption and surface finish they are classified as under. D91H8$ 23:D91H8$ TI98'
(/
1ndhra 3niversity
Tiles surface has a different composition than the body since the surface of the tiles are <uoted glaze before firing.
3nglazed tiles are not <uoted with any glaze.
FIT5I!I8$ It features a dense and impervious body. The colour of the tile and body depending on the tiles that are added to the surface finish can be met or natural and they are polished in order to generate a glossy surface.
CERAMAIC TILES STANDARDS AND PERAMETERS THERMAL SHOCK %eramic tiles withstands temperature chances well but if floor or wall tile will be exposed to hot or cold surface Iaround hearths or chimneys, for instanceJ these temperature chances need to be considered. CRA/ING RESISTANCE %razing produces cracks in the surface glaze caused by the expansion of the tile body when exposed to moisture. $ue to <uality controls during the manufacturing process, the problem is virtually non#existent in ceramic tile from 'pain.
FROST RESISTANCE 1n import re<uirement if the tile is to be installed in areas that will be exposed to very low temperatures in these applications tile with a low water absorption factor should be specified.
(>
1ndhra 3niversity
APPLICATIONS OF CERAMIC TILES
INTERIOR APPLICATIONS 1reas of common useG 1ll areas of neighborhood and family life. "ome entrance ways , foyers, hallways and stirs usually re<uire flooring materials that can handle heavy traffic. PRIVATE AREAS %eramic flooring is being used in various application in the home. The wide variety of available sizes,shapes,colours and decorative styles give the most intimate domains their own personal flair. BATHROOMS The ideas of health and hygiene as symbols of progress and social status, the bathrooms has become integrated in the home traditionally using ceramic tile floor and wall coverings.
KITCHENS %eramic tile goes beyond the utilitarian and offers a variety of design options. Taking in to consideration typical knocks and scratches ,spilled food and aggressive cleaning agents ,kitchen installations re<uire tiles that meet the appropriate
specification. E0TERIOR INSTALLATIONS :o other material can e<ual to ceramic in its richness of colour, variety of finishes and resistance to light and external agents.
(,
1ndhra 3niversity
ROOFS The variety of shapes and sizes make tile appropriate for splendid building facades.
RESIDENTIAL BUILDING CONSTRUCTION In single#family housing, ceramic tile is used for skirtingBs, as well as in garden and exterior flooring applications.
INDUSTRIAL AND COMMERCIAL INSTALLATION These include an extensive variety of urban and architectural projects such sports facilities, departmental stores, airports, train and bus stations, places of worship, and institutional buildings.
URBAN DESIGN &eauty and innovative landscaping take priority in street, promenade and public garden design. Most common is the fre<uent use of traditional ceramic materials in skirtingBs, benches, ornamental spaces, fountains, park lakes and monuments where ceramic tile is found in a wide variety of shapes, sizes colors and decorative styles.
COMPETITION FROM SUBSTITUTE In India, for flooring materials like mosaic, marble, granite and ceramic tiles are used. 7hen compared to marble and granite ceramic tiles are much cheaper. Then the cheapest alternative is mosaic flooring, which is having )-. of the total market share.
(+
1ndhra 3niversity
Mosaic tiles are available at price range as of 5s.(/#(+ per '< feet. The mosaic tiles are not subject to any excise duty where as (C. excise duty is levied on ceramic tiles. "owever the policy of the government is to reduce excise duty on ceramic tiles to (-. as per 5aja %elia committee report. 1lready the excise duty on ceramic sanitary ware is reduce to (+.. 7ith the reduction of excise duty to the level of (-. and increase in the capacities of various procedures, the ceramic tiles supply will increase and the prices will come down making attractive to the consumer to go in for ceramic tiles instead of Mosaic compared to mosaic tiles, laying of ceramic floor tiles is much simply and less costly.
I'123)+( S4-'&+5# &'1 F2)2+- P+#3%-4)3 T.- 6+#7). 5' ).- 5'123)+( 53 $&5'*( #' &44#2') #8 ).- 8#**#75'69 a. 5eduction in excise duty from ++. to (C. b. The increased awareness among the Indian middle class of the need for hygiene at the home and public places.
T.- 5'123)+( 53 -:%-4)-1 )# 6+#7 &) 25; 12- )# ).- 8#**#75'6 8&4)#+39 The expected further reduction in excise duty rates on ceramic tiles.
(C
1ndhra 3niversity
Increased trend of shift towards ceramic tiles from traditional mosaic flooring. 'ubstantial reduction in interest rates on housing finance. 6roposed amendment in the urban land @%eiling and regulationA act,()=C which would add to the housing stock of the country. 'hortage of ).+ million houses in the urban segment and />.+ million in the rural segment. Increase in replacement market in the middle class segment, where they are going in for ceramic tiles for flooring and tiles in kitchen and bathrooms not only up to +EC feet, but also up t the rooftop, with latest designs and colors. The middle class segment is replacing flooring and in case of new construction going with ceramic tiles, in view of 9ow gestation 8asy to lay the tiles Fast range of designs and colors &etter properties in terms of hygiene, abrasion resistance, acid resistance and scratch proof.
(=
1ndhra 3niversity
NEED FOR THE STUDY
Marketing occupies a vital position in business operations. 7ith the change in economy the importance of marketing is drastically increasing. %ustomer is the core of all marketing activities with the advent of globalization. Increasing information and competition and customerBs expectation and need from the product are also increasing. The organizations whose activities are most competitive are surviving achieving success in to dayBs world. The companies must look for ways and means to reduce. Their cost to gain the profit with out loosing the customer to the competitors. 'tream living the channels of the distribution and levels of satisfactions is one are where the manufacturer decision have drastic impact on the costs incurred. The decision made on the distribution channels can make or break on organization. In this contest it essential study the concept of distribution channels and level of satisfaction in 5%9.
(*
1ndhra 3niversity
OB"ECTIVE OF THE STUDY
To study ceramic industry is general.
To study the distribution channels of The 5egency %eramics limited.
To study the performance and growth of The 5egency %eramics limited.
To know the consumer reactions towards the right distribution objectives of The 5egency %eramics limited.
To analyze distributors opinion with regard to channels of distribution of The 5egency %eramics limited.
To study the margins offered by the company and level of satisfaction of the dealers.
To suggest effective measures and necessary improvements in distribution.
()
1ndhra 3niversity
SCOPE OF THE STUDY

In my project , I approached different kinds of dealers and retailers in 81'T D4$1F15I $I'T5I%T. It covers all types of transporter including company owned transporter, outsider and dealers transportation is also location into consideration. The various factors influencing in the selection of distribution of channels of the company in particular area market.
/-
1ndhra 3niversity
METHODOLOGY
5esearch methodology is a way to systematically solve the research problem. It may be understood as a science of study how research is done scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is a necessary for researcher for to know not only the research methods or techni<ues but also the methodology. R-3-&+4. D-356'9 1 research design is a plan of action to be carried out in connection with a research project. It is however not an unbreakable rule, nor a hard#and#fast strategy. 4n the contrary, it is only guidance for he researcher to enable him to keep track of his actions and to know that he is moving in the right direction in order to achieve his goal. The design may be a specific presentation of the various steps in process of research. These steps include the selection of a research problem, the presentation of the problem the formulation and the hypothesis, conceptual clarify, methodology, data collection, survey 2 literature and documentation, the testing 2 hypothesis, interpretation, bibliography, presentation 2 report writing. The methodology adopted for the present study to obtain the primary data was through a structured 2 unstructured <uestionnaire. S)+24)2+-1 Q2-3)5#''&5+-9 In this structured <uestionnaire, the given <uestions are designed, for which the answers are obtained. It means that the answers to the <uestions are preconceived 2 classified into possible groups. In codified <uestionnaires, possible answers are pre structured and codified.
/(
1ndhra 3niversity
U'3)+24)2+-1 Q2-3)5#''&5+-9
3nstructured interviews do not put any control on the respondents. They may be in the form of the discussions. This method is usually employed in pilot studies. 7hen the information sought for is a detailed appreciation, interpretation, or an expression of emotion, unstructured interviews are appropriate. &efore this study was started, a detailed <uestionnaire was prepared and it was duly pilot tested. !or the purpose of this study, the sample size of +- dealers was taken. The list of +- dealers was prepared and all of them were given the <uestionnaires and feedback got then and there only, sometimes the feedback was got the following day.
P+5$&+( D&)&9 !or the purpose of collection of primary data, two types of samples was used on was selective sample and the other was random sample.
S-*-4)5<- S&$%*5'69 The method was used to selected places in 8ast Dodavari dealers. 1s most of the corporate offices were spread all over the areas were selected so as to cover whole of the city.
//
1ndhra 3niversity
The secondary data for the study was obtained from the following ways. (. 5ecords of the company. /. 5eports of the company >. ?ournals of the company ,. The trade journals +. :ewspapers C. %o#project trainees =. 7ebsites visited.
/>
1ndhra 3niversity
LIMITATIONS
The period of the project is limited to * weeks only.
1ll the information collected and analyzed according to norms and conduction of the organization.
'ome dealers are not responding because of their busy work.
'ome of the dealers are responded across the telephones.
$ue to the lack of time, I have obtained little information.
I had to solely depend up on the talks that I had with my senior executives in getting some information, thinking it to be true.
'ample size is restricted to distributors of 8ast Dodavari $istrict.
The accuracy depends up on the <uality of data obtained from the company sources.
/,
1ndhra 3niversity
COMPANY PROFILE
HISTORY OF THE COMPANY 8ver since the industry was de#license provided they setup their units in backward areas. There had been a spate of registrations with directorate, general of technical development following a boon in housing activity. The hellion period in late eighties has pushed many entrepreneurs to enter in to ceramic tile industry. Through ceramic tiles are viewed as luxury items till recently by the Dovernment there is substantial increase demand thanks to the improved standard of living. :ot with standing the difficulties faced by the industry there is scope for setting up units in 1ndhra 6radesh, Dujarat, 3ttar 6radesh and Tamilnadu. 1ndhra 6radesh particularly Dodavari $istrict, is ideal say a senior officials of 1.6.'tate Industrial $evelopment %orporation which has sanctioned term loans are participated in e<uity capital of many units. 5egency %eramics 9imited is one of such industry established in the year ()*+ at ;anam @Integral part of 3nion Territory of 6ondicherryA on the Dodavari 5iver belt of 8ast Dodawari $istrict of 1ndhra 6radesh. The company has established on ,- acres of land to manufacture glazed and unglazed ceramic floor and wall tiles. The 6lant is constructed with technical collaboration of K7elkoL industry of Italy, with a initial capacity of ,,--- '<.mtrs per day. The initial investment was 5s.(/ %rores.
/+
1ndhra 3niversity
The 6lant commercial production was started in the year ()*C with a capacity of ,--'<m per day. The company took up expansions in ()), in order to meet the growing demand for the product in the export and domestic market. ()),#,--- '<m, ()))#C+-'<m, /---#/+-- '<m and /--(#((--- '<m, /-->#(*---. The output for expansion was 5s./* crores. Thus, the total plant capacity is ,C,--- '<mE$ay. The market leader in the floor tile segment in the country, 5egency also has the uni<ue distinction of recognized 8M645T "43'8 status by the Dovernment of India. 5egency export /+. of its production to different countries. &eing highly <uality conscious, 5egency uses the best of raw material to produce tiles conforming to the International 'tandards. !or its constant 8ndeavour of
maintaining <uality, the company has bestowed with the certification of I'4 )--(, I'4 (,--(, 4"'1' (*--(, for Nuality 8nvironmental and 'afety Management respectively. The companyBs products are exported to about >- countries and thus have established its brand name K58D8:%;L in the world tiles market. The company earned a !oreigh 8xchange of 5s./).=- crores during the year /-->#-, and about 5s.>-.-- %rores during the year /--,#-+. The company is
contributing a sum of around 5s.+-.-- crores per annum to the exche<uer by way of taxes and duties. The increased demand and acceptability of 5egency %eramic Tiles as further prompted the company to extent further production facility to ( 9akh '<mE$ay in a phased manner with divorced products in wall and porcelain tiles. The plant started up as on (--. 8xport 4riented 3nit and later got the permission to service the Indian market as well. Thus substantial revenue is generated by way of sales tax, excise duty and infrastructure facilities at ;anam.
/C
1ndhra 3niversity
5egency Medical 'ervices a Mobile Medical "ospital with a dedicated medical team and e<uipped with all sophisticated medical facilities has been set up by 5egency to cater to the medical needs of the poor people of ;anam and its surrounding places. It is a mobile hospital on the wheels striving to attain its aim of providing modern medical facilities to the poor people in and around ;anam absolutely at free of cost. 5egency is spending a sum of 5s.(- 9akhs per month for running the mobile hospital. 5egency regularly organizes free polio, eye, ortho and 8:T camps as a part of its social obligation. It supplies drinking water to ;anam and surrounding villages. It also supplies water to the drought prone areas of 5ajampet and 5ayachoti in %uddapah $istrict of 1ndhra 6radesh. The culmination of $r.D.:.:aiduBs ideology to eradicate the age#old $475; ';'T8M at least in the precincts of 5egency group had him to invoke a rule in the standing orders of the company, prohibiting the obnoxious practice of $owry 'ystem in the entire 5egency Droup. $r.:aiduBs idea of providing employment to the person who weds a women employee working in 5egency without dowry is infact innovative and though provoking.
HONOURABLE DOCTORATE DEGREE TO G.N.NAIDU &urkes 3niversity of 3.0. has conferred on $r.D.:.:aidu, the chairman and Managing $irector of 5egency %eramics 9imited, "onorary 6h.$. in &usiness Management recognizing his remarkable achievements by confronting challenges with focus, courage and determination and commitment towards the social and charitable needs of the world. This certificate was issued to him in the year /-->.
/=
1ndhra 3niversity
SIGNIFICANCE OF REGENCY CERAMICS (. 78904 @%ollaboratorsA /. 16I$% @1ndhra 6radesh Industrial $evelopment %orporationA >. I$&I ,. I%I%I +. 8MIM &1:0
MAIN OB"ECTIVE To produce the market <uality tiles re<uired for floor, wall 2 Fitrified.
VISION To be among (- companies in India. 6roviding <uality tiles re<uired for floors and walls by developing products and production base keeping with Market needs and technology changes.
CORE VALUES 'ense of belonging pride for the company Integrity and fairness "onesty and Mutual trust 'afety, <uality and cost consciousness "ard 7ork and %ommitment 'ocial 5esponsibility
/*
1ndhra 3niversity
AWARDS AND CERTIFICATES BAGGED BY REGENCY (. ()*=#**, ()**#*), ()*)#)- 8xport recognition certificate by %168MI9 /. ?uly ())( pride of India Dold Medal presented to M.$., by Indian 1mbassador to 3.'.1. >. ()),#)+ 'urana udyog silver rolling trophy by !16%%I O 1.6
,. ())*#)) 8xport recognition certificate by %168MI9 +. ())*#)) samman award for best performance C. ()))#-- 8xport recognition certificate by %168MI9 =. /---#-( place in top (- firms for highest export containers at I%$ by %ntainer %orporation of India # "yderabad *. /--(#-/ out standing export performance award and status of special export house . PROMOTERS Deneral Manager Mr. D.:.:aidu, Mr. 'eshagiri 5ao the 8x %ongress 9eader with the technical collaboration of 789%4 @ItalyA, as promoted the company. Mr.D.:.:aidu is a &.8., @%ivilA with 1rchitecture. In ()+- he promoted K:.:.1''4%I'T8'L @%onstruction %onsultantsA at "yderabad, which is the present head office of all 5egency %oncerns. 5egency %eramics 5egency 1gro 6roducts 9td. 5egency 5are minerals 2 %hemicals 9td 5egency Dlazes 9td. The financial support was gives by K6I6$0L @6ondichery Industrial 6romotion and $istrict Industrial %orporation 9tdA, it has given subsidy of /+. in the period of (#,# *> to >-#(/#*), and K16I$%L @1ndhra 6radesh Industrial $evelopment %orporation 9td.,A.
/)
1ndhra 3niversity
LICENCE AND PRODUCT RANGE 1n industrial license no *+#dated (#((#*+. The company started its production from May ()*C. There are so many ranges of products with different 'eries and %olors. PLANT LOCATION The plant is located at ;1:1M, which is situated at left back of eastern branch of Dodavari 5iver in 1.6. the corporate office of 5.%.9., situated at "yderabad. ;anam is about /C 0ms from 0akinada, head <uarterBs of 8ast Dodvary $ist. 'ince the project is located in a centrally notified backward area. It has been sanctioned a part of its term loans and underwriting assistance on confessional terms by the financial institutions. The plant is constructed with technical collaboration of K789%4L industry of Italy. INVESTMENT 5.%.9. was setup in ()*+. %ompany started its production from May ()*C with an annual production turnover of (, *=.*+ 9akhs. %ompany ac<uires freehold land f >( 1cres ade<uate for locating the factory for a feature expansion. &uilding 1rea /--P(--'<. mts 5oads and %.6.D. &ullets and 'heds > 1cres. 7ater 'torage , 1cres.
INVESTMENT DETAILS 9and &uilding 6lant and Machinery 4ther 1ssets )C 9akhs ,(.)+ 9akhs ))-.=- 9akhs +.+= 9akhs
>-
1ndhra 3niversity
POWER The total re<uirement of power for the project is estimated at /--- "ors power.
WATER The company may arrangements for meeting the water re<uirements through ponds. Dodvari water is coming through irrigation cannels and stored in ponds and tanks of , 1cres of land.
GAS 5egency ceramics uses natural gas as the fuel for their plant since ()), which conserver not only energy but also controls pollution. The natural gas, which is available in the Dodavari &asin, is utilized for the production process.The natural gas is transported through pipeline from Thatipaka 5efinery of 4:D%.
TRANSPORTATION FACILITIES (A ;anam is well connected by road and water transported. /A ;anam being located just about >Ckms from 0akinada, which is well connected by rail, road and shipping transportation facilities. >A 5egency ceramics, which is engaged in 8xports, can be easily transported by ship from fast growing 0akinada port. 1nd %hennai to other countries. ,A The upcoming bridge over Dodvari tributary @;1:1M#8$35391:01A at ;anam. 7hich connects 0onaseema will certainly reduce the transportation cost involve, which is definitely an added advantage.
>(
1ndhra 3niversity
PLANT AND MACHINERY The plant has been established on (-- 1cres of land and all the machinery is imported from Italy.
PRO0IMITY TO RAW MATERIALS The raw materials used in the production process of ceramic tiles are &all clay, 7hite clay, $olerite, 6ond clay, 'odium 'ilicates, Hno, Dlazes, 5ed clay, !eldspar, 9umps power, various colorants etc. 1ll raw materials are available I the near by areas. 1nd these are transported through trucks to factory for production. &all clay is abundantly available at &himadole, 7est Dodvari $ist., and other places from Dudur, 5ajahmundry and $waraka tirumala @%hinatirupathiA !eldspar is mined near "yderabad and supplied to ceramic and and glass manufacturing units all over the country. The main ingredient ball clay, which is brought from &himadole to be obtained from 0olkata and Mumbai. The 5.%.9. factory enjoys a uni<ue advantage of being located near materials hereby the cost can be considerably reduced.
>/
1ndhra 3niversity
FUNCTIONAL MANAGEMENT OF REGENCY
LABOUR FACILITIES The production plant of 5egency %eramics 9td., at ;anam re<uires skilled and semi#skilled workers which it employees from near by areas. The <ualified persons who work in the organization are having the best knowledge in both Technical @4perationsA and Managerial skills. The labor facility in 5egency %eramics 9td., is very impressive.
WORKING HOURS It is implemented that the factory is working under four shifts viz., 1, &, % and Deneral shifts. The shifts are arranged in such a way have to carry on the production continuously and the clock. The following table exhibits the arrangements of shifts and timings.
'"I!T 1 & % Deneral 'hift
TIM8 Cam to /pm /am to (-pm (-pm to Cam *G>-am to+G>-pm
INTERVALS It is also observed that a half an hour break is given to the employees in 1, &, % shifts and an hour break is given as lunch to the general shift.
>>
1ndhra 3niversity
STAFF The following table shows the total manpower who are engaged with the marketing and other fields to make the organization to move in good steps too words the companies objective.
1$MI:I'T51TI4: 'I$8 654$3%TI4: 'I$8 "81$ 4!!I%8 @";$A T4T19 M1: 64785 1T 'IT8 4!!I%8 $81985' 199 4F85 I:$I1
((+ /*+ =+ /--C+-
5egency is having a workers union namely K58D8:%; 745085' 3:I4:L which is affiliated to 1IT3%.
SAFETY MEASURES 'ome of the safeties measures are provided to the workers are Das mask, dust mask, hand gloves, welding gloves, shoes high ankles and steel cap. The employees who are working at site office are given a uniform the uniform helps the employees to look attractive and identical. The personal manager Mr.'.'3$"885 03M15 looks after the problems and maters of employees working in the company. RESEARCH AND DEVELOPMENT The factory has the research and development. The company showing keeps interest towards 52$., with a view to enhance the significance of ceramic tiles by
>,
1ndhra 3niversity
introducing various types. 1nd become a leader in market of tiles by introducing various types of designs such as serene printing differentiation with the use of glazed colors. This helps the company to maintain high standards. 1nd become a leader in, market of tiles by meeting the competition and also to be familiar with the international standards.
1 part form testing regular characteristics of tiles, new designs have been identified and developed and developed as per the market re<uirement. 'amples are also being sent to all regions as soon as new shades are developed and produced. 6resently 52$ is concentrating on development of various shades and designs. That is screen#printing, Dranites etc. this type of activity is certainly going to be vital aspect in development of thee company. The 52$ is the most important key to the development of any industry.
PRODUCTION PROCESS9 RAW MATERIAL USED IN PRODUCTION The raw materials used to make tiles areG &all clay 5ed clay !eldspar 6owder !ine sand 'odium silicate Hinc oxide $ifferent colorants
>+
1ndhra 3niversity
96D gas 7hite clay $olomite Dlazes 7ater
It is observed that the raw materials re<uired for manufacturing process are brought from &all clay %olorants !eldspar # # # &himadole 0olkata 2 Mumbai "yderabad
Das, 0iln ball are imported from Italy 1s per the last annual reports of the company it is found that the company has achieved an average capacity utilization of (-=. power re<uired to the plant is /---hp. 7ater is available abundantly from Dodavari 96D Das is transported through pipe lines from Thatipaka@4:D%A
PROCESS DESCRIPTION 5aw materials arriving from the <ueries have stored in the raw materials bins at the factory. The hard raw materials like !eldspar and 'and are 6re#ground to powders. 1 mechanical shovel transfers all the raw material to the weighing system. The operator discharges the raw materials in the hoppers attached to the weighing system. The different <uantities of each raw material for the body composition are indicated on the balance dial to control the weighing and feeding of raw materials to the grinding department. 1fter weighing the raw materials then the operator conveys them to the ball mill, by means of belt conveyors. Ideal %ollege of 1rts 2 'ciences >C 1ndhra 3niversity
7hen the prescribed charge is reached the ball mills drain plug is closed and the grinding operation starts. The grinding cycle and ball mill revolution have been previously assigned, so that, the ball mills automatically stops. The grinding process takes , to = hours. 1t this stage, the slip @the raw material ground to a li<uid stageA is unloaded from the ball mills to the first storage tank. The slip sieved again and then transferred in to the second storage tank for spray drier feeding.
S%+&( 1+(5'6= 123) 4#**-4)5#' &'1 %+-33 8--15'6 1-%&+)$-') !rom the slip storage tank, the slip after filtering is conveyed the spray drier, by means of a high#pressure pump. The spray drier feeding is set up considering a preliminary slip with (.C+0gE it density. In any case, the spray drier is conceived to produce the re<uired powder <uantity taking into consideration the density variations. The spray drier is provided with wet dust collection system that allows a maximum chimney outlet of (--m.gEn.cub. &y means of conveyors belts and bucket elevator the spray Odrier powder is transferred to the storage silos. !rom storage silos, the powder is transferred in the press hoppers, provided a with controls sleve, by means of conveyor belts and bucket elevator. P+-335'6 &'1 8&3) 1+(5'6 3-4)5#' !or the pressing, we have automatic hydraulic presses that are electronically controlled. 8ach press is e<uipped with automatic control of the thickness and number of cycles per minute.
>=
1ndhra 3niversity
The tiles coming out of the press are conveyed to the fast drier by a continuous feeding machine, provided with brushing and file turning devices. The pressing department is provided with dust section and collecting system.
G*&>- %+-%&+&)5#' 1-%&+)$-') 5aw materials 7ashing clay, washed kaolin ,potassic ,feld spar, sodic feldspar, potassic acid <uartz calcinated alumina, calcium carbonate , dolomite , barium, carbonate ,zinc sodium silicate flour and micron zed wall a stonine ,borax acid lithium, carbonate , potassium nitrate, potassium carbonate ,zinc oxide. Dlaze preparation is carried out into wet mills with porcelain lining and pebbles where raw materials and frits are ground. !irst arrive to the factory in bags. 1fter weighing and batching, raw materials reloaded into the mills by means of an electric hoist. The transfer of the glaze to the storage tank is carried out with a pump provided with a control screen.
G*&>5'6 1-%&+)$-') 1n automatic feeding system transfers the tiles from the drier to the glazing line. The glazing line of the tiles is carried out by the first brushing the tiles. $e#dusting, glazing and silkscreen decoration units. 1t the end of the glazing line is a machine for automatic loading of the tiles in the container cars. The container cars are then placed in the green storage line. The glazes are carried out to the glazing department by means of containers.
>*
1ndhra 3niversity
F5+5'6 &'1 3)#+&6- #8 85:-1 )5*-3 The fast firing process is fully automatically driven by means of singly layer roller kiln. The control of firing is by control#devices e<uipped on the kiln. 1t the inlet of the kiln, is a machine that automatically unloads the container cars and feeds the kiln. 0iln cycle should be maintained from >> minimum to C+ maximum. !iring curve should be maintained ((+- degree %elsius to(()- degree %elsius in firing zone. %heck by pass line gas pressure from C-- to *-- mmhg. %heck rollers movement. %heck kiln inlet row to row gap. 1 machine at the kiln outlet unloads the finished tiles from the kiln and transfers them to the sorting line.
S#+)5'6 &'1 %&4,5'6 3-4)5#' 1fter the control flexural strength in the section line, the operator divides the tiles in re<uired <ualities and the tiles are automatically pile and then after inspection of the dimensions. Tiles are put into the %arton boxes are then sealed with &466 tape. 1nd placed on pallets and transferred to finished product warehouse.
FLOW CHARTS M&'28&4)2+5'6 %+#4-33 8*#7 4.&+) 8#+ 8*##+ )5*-3
>)
1ndhra 3niversity
5aw materials
6resser
5aw materials
7eighing hooper
$rier
7eighing scales
&ar mills
Dlaze line
Dlaze mills
'pry dryer
3niversal loading
'torage tanks
&ody slipn separator
'orage cars
'lip storage tank
3niversal unloading
'ervice tank
0iln
'pray drier
'torage line
6owser storage silos
'tock yard
M&'28&4)2+5'6 %+#4-33 8*#7 4.&+) 8#+ 5'123)+5&* )5*-3
,-
1ndhra 3niversity
5aw materials
7eighing hoppers
&all mills
&ody slip separator
'torage tank
'pray drier
'ilos
$rier
0iln
'torage line
!ast firing
'tock yard
ORGANI/ATIONAL SET UP IN RCL ADMINISTRATION OFFICE Ideal %ollege of 1rts 2 'ciences ,( 1ndhra 3niversity
1dministration office plays an important role smooth running of the organization. In this office all executives are accountable to the secretary. 1dministration building is situated at :ampally, "yderabad. Manager is the main administration officer. "e occupies top position in the organization. "e has authority upon all officers. The organization consists of different departments. PERSONAL DEPARTMENT 6ersonal officer is the chief of the personnel department. "e has authority upon all the workers. "e should look after the welfare of the workers and also recommend to management about their needs and wants. ( / 6ersonnel manager 1ssistant personnel manager 4ffice assistant
FINANCE DEPARTMENT Fice president of finance is the key member in finance department. Fice president is directly responsible for to the top management. !inance manager should see the profit and loss account, balance sheet of the company with the help of finance manager Fice president finance !inance manager 1ssistant accounts officer 'enior accounts officer 1ccounts assistants.
MARKETING DEPARTMENT
,/
1ndhra 3niversity
Fice president of marketing is the key member in the marketing department. "e is directly responsible to the management in attainment of the sales improvement. The marketing department plays pivotal role in 5.%.9. &asically 5.%.9. produces two are suitable for 1partments, shopping complexes, hospitals, industries, swimming pools etc. marketing departing department has central offices, regional offices, deports and dealers spread all over India.
E0PORT DEPARTMENT9 E0PORTS COUNTRIES LIST (. 685'I1: D39! /. '5I91:01 >. 8T"I46I1 ,. 13'T519I1 +. N1T15 C. :ID85I1 =. 0371IT *. ?8$$1" ). ;8M8: (-. M19$IF8' ((. &1"51I: (/. '43T"1!5I%1 (>. M135ITI3' (,. &1:D91$8'" (+. 3.1.8 (C. '13$I 151&I1 (=. 08:;1
,>
1ndhra 3niversity
(*. 53''I1 (). D8:8F1 Deneral Manager of international operations is a key member in the export department. "e is directly responsible to the management in the attainment of the sales improvement.
PRODUCTION DEPARTMENT 6roduction department is the most important part of 5.%.9. chief engineer is responsible for improvement of the production in the company. Deneral manager operations 1ssistant general manager operations 6roduction manager %hief engineer 'upervisors 4perators
ENVIRONMENTAL POLICY OF RCL 6ollution prevention and continual improvement in environmental management. Minimum pollution at source through environment friendly process techni<ues. %omply with applicable environmental, safety and health regulations . %onserve natural resources and energy. $evelop ade<uate green belt in and around the plant. 8ducate and develop an environmentally aware workforce at all levels.
,,
1ndhra 3niversity
H#'#+&+( D#4)#+&)- )# R-6-'4( C.&5+$&' &urkes 3niversity of 3.0. conferred "onorary $octorate of 6hilosophy @6h.$A $egree in the &usiness Management to 'ri D.:.:1I$3 the %hairman 2 Managing $irector of MEs.5egency %eramics 9imited. The 3niversity stated that this has been conferred on his outstanding and successful performance as &usinessman and in extending numerous voluntary 'ervice 6rogrammes to the public. 5egency Droup is running 8ducational Institutions from 90D to 8ngineering in ;anam. 1t present, the 5egency %eramics 9imited is manufacturing ceramic tiles with a production capacity of /*--'<.Mtrs per day.
,+
1ndhra 3niversity
BOARD OF DIRECTORS
(. $r.D.:.:aidu /. 'mt. &indu D. :aidu >. 'mt. D.5adhika ,. 'ri. T.F.%houdary +. 'ri.D.'reenivasulu :aidu C. 'ri. :eelakantan Fedagiri =. 'ri. 6.?.F. 'arma *. 'ri. '.F.?agannath ). $r.M.F.D.5ao (-. Mr.0.%.%handrashekar ((. Mr.8.&alakrishana 5ao
# # # # # # # #
%hairman and Managing $irector $irector @Marketing 2 'alesA 7hole time $irector $irector $irector $irector $irector $irector # 1dditional $irector
# #
6resident @4perationsA Fice 6resident @!inanceA
PRODUCTION %ompany produced C>.(> lakhs s<mts of ceramic tiles during the year /--+#/--C as against ,=.>) lakhs s<mts in the previous year recording and increase of >,.. The capacity utilization was ((-.. The company has added balancing e<uipment costing 5s (**.C,lakhs using its internal accrual, which resulted in the enhancement of the installed capacity from =C---Mts to )----Mts. OPERATIONS $uring the year ended March >(, /--C, the company recorded a turnover of 5s (+>,C lakhs and a net profit after tax of 5s (-C> lakhs against 5s ==,+ lakhs and 5s =*+ lakhs respectively in the continuous efforts made by the company in controlling costs and by increasing the productivity with the available resources.
,C
1ndhra 3niversity
E0PORTS %ompany has exported ((.(C lakhs s<.mts. 4f ceramic tiles to different countries of 6ersian Dulf, 1frica, 'rilanka and Maurtius. $uring the year company achieved an export turnover of 5s. (+C,> lakhs companyBs, efforts in exploring new avenues to export to other parts of the world yielded results and the company made its maiden shipment to 3'1.
ACHIEVEMENTS %ompany was the proud recipient of the K%ertificate of MeritL in recognition of 8xport achievement during ()))#-- from %168MI9, ministry of commerce, Dovt. of India. %ompany has been placed first in Top ten I%$ list for the maximum number of export#loaded containers handled by %ontainer %orporation of India 9td., "yd.
DIVIDEND $irectors are happy to recommend a dividend of (+. for the year /--C#-=. If approved by the shareholders, a payout of 5s. (C>.(( lakhs is to be made towards the dividend of (/. @i.e.5s (./- per e<uity share of 5s. (- eachA on the e<uity share capital of the company.
CAPITAL E0PENDITURE The company concentrates on building up is fixed assets with an intention to reap along term benefits that will increase the shareholders value in the coming years. The net addition made during the year under review amounted to 5s =+=.)/ lakhs, which takes, that total gross block to 5s***-.) lakhs as at >(#>#-= against 5s. *(/>.-C lakhs as on >(# >#-C.
,=
1ndhra 3niversity
CUSTOMS AND E0CISE MATTERS 7ith regard to the dispute for the payment of customs duty on capital e<uipment imported during ()*+#*C, company has preferred and appeal to %8D1T against the order passed by the commissioner @1ppealsA.
GROWTH PLANS The company has embarked up on a modernization come expansion project for its further growth. The implementation of the project is in progress and is expected to be commissioned during the current financial year. The directors are confidant that the expansion comes modernization will further enhance the business and profitability in the coming years.
ENVIROMENT AND SOCIAL CONSERN The audit for I'4 (,--( was successfully completed and company was accredited with K8nvironmental Management 'ystem @8M'AL certification. 1part from the certification under I'4 )--/ for its consistent <uality of products. %ontinuous efforts are being made to bring down the wastage and to conserve energy.$uring the year, under review, company has provided medial bus with doctors to extend medial facilities in and around ;anam. 7e are all aware of the devastating earth<uake that struck the state of Dujarat on ?an /C, /--(. 4ur company promptly extended is helping hand by contributing 5s.( lakh to the 6rime ministers :ational 5elief !und. 'upplemented by a voluntary contribution of one dayBs salary by the employees of the company. 1s apart of the relief measure, company also sent a special bus with a team of doctors, medicines, clothes, food packets etc. to the worst effected areas.
,*
1ndhra 3niversity
EMPLOYEE WELFARE MEASURES "ouse rent allowance "ealth care facilities %anteen facilities )offers at subsidiary rateA Two pairs of uniforms and one pair of shoes per year. $iscount on purchase of company products 1ll the employees cover in the 6.! schemes 1 good education facility for employeeBs children.
,)
1ndhra 3niversity
(.
+-
1ndhra 3niversity
IMPORTANCE OF MARKETING
Marketing is a broad topic that covers a range of aspects, including advertising , public relations, sales, and promotions. 6eople often confuse sales with marketing, when in fact the two are very different. The former involves getting a product or service into the market, promoting it, influencing behavior, and encouraging sales. 'ales are the actual transactions of getting a product or service into the hands of your customers. 'trategies in marketing have changed enormously since ?ay %ontract 9evinson introduced the guerilla concept over /-years ago. Tactics that were considered radical then are almost mainstream now. 7ith so many messages bombarding the consumer in the marketplace today, it is now more difficult than ever to get your product noticed, so marketers have learned to be creative. Marketing is essential for all or near full employment. It involves the delivery of goods and services to the whole community. In this way a large number of people are needed for performing various functions. 1ny increase in the efficiency of the marketing process which results in lower prices to consumers and this brings an increase in national income. 'cientific marketing has an establishing effect on the price liver. 6roducers produce what consumers what and consumers what and consumer have a wide choice of products so there no fre<uent ups and downs in prices. Marketing adds value of goods by changing there owner ship and by changing there owner ship and by changing their time and place and consumption. 1 sound marketing system can give protection against business stump by improving the products and discovering new markets.
+(
1ndhra 3niversity
It is a marketing which has converted K ;esterdayBs luxuries into to days necessariesL and marketing converts latest demand into effective demand. Marketing also plays an important role for the well being of the firm. Marketing helps in business planning, decision making and profits to the business from and communication between the firm and the society.
CONCEPT OF DISTRIBUTION CHANNEL

1 major focus of channels of distribution is delivering. It is only through distribution that public and private goods and services can be made available for use or consumption. 6roducers of such goods and services are individuals capable or generating only the form of structural utility for their products and they can organize their production capability in such a way that the products they have developed can in fact be analyzed and sold in the market. The emergence and arrangement of wide variety of distribution oriented institution and agencies. Typically called intermediaries because they stand between production on the are hand and consumption on the after, can be explained in the following terms. Intermediaries can improve the efficiency of the process They help in the proper arrangement of routes of transaction They help in the searching process They help in the sorting process
+/
1ndhra 3niversity
D-85'5)5#'39 K%hannels of distribution is a path traced in the direct or indirect transfer of the title to a product as it moves from a producer to utilizing consumers or industrial userL. # E.W.C2'1588 R.S.S)5** K%hannel of $istribution markets or marketing channels is a structure of intra company organizations, units and intra O company agents and dealers, wholesalers and retailers through with a commodity product or service are marketedL. A$-+54&'M&+,-)5'6 A33#45&)5#' O?@-4)5<-3 #8 C.&''-*3 #8 D53)+5?2)5#'9 To ensure available of products at the point of sale To build channel members loyalty To stimulate channel members to put greater selling efforts To develop managerial efficiency in channel organization To identify your organization at the buyer level To have an efficient and effective distribution system, to make your producers and service available. S2$$&+(9 &'1
+>
1ndhra 3niversity
%hannel distributions are mainly concerned with the physical distribution of goods and services they also enhance promotion and selling and import marketing control. It is the set of market institution or intermediaries who participate in distribution of goods and service from the point of products to the point of consumption. 1 flow is a set of functions performed in se<uence by channel members in the flow process producers, wholesalers, retailers and consumption are linked. The function that need to be necessarily performed in a channel system include transfer of owner ship through transportation order, processing inventory carrying, storage sorting negotiations and promotions. The some function in a given channel system may be performed at more than one level and in such a case the workload for the function would need to be charged between channel member. 1 channel symbolized the path for the movement of title, possession and payment for good and services.
P&))-+'3 #8 153)+5?2)5#'9 1fter a producer has selected a type of channel that makes the most sure for his products, the next step is to determine the level of distribution intensity, which specifies the number of marketing intermediaries that will carry the products. $epending on a firmBs product., objective and customer the level of intensity may different from case to case. 1lso distribution intensity is fre<uently modified as a product progresses through its life cycle. Marketing have three basic levels of intensity to choose from (AIntensive /A 'elective >A8xclusive.
1AI')-'35<- D53)+5?2)5#'9 1 channel strategy that seeks to make products available in as many appropriate places as possible.
+,
1ndhra 3niversity
2A S-*-4)5<- D53)+5?2)5#'9 1 channel strategy that limit available of products to a few care fully selected outlets in a given market area.
3A E:4*235<- D53)+5?2)5#'9 1n extreme case of selective distribution in which only one outlet in a market territory is allowed to carry a product or a product line. P+5$&+( P&+)545%&')39 6rimary channel participants are defined as Kparticipants that acknowledge this dependence upon are another in a channel arrangement and assume the risk during the value. 1ddition distribution processL the primary participants are manufactures wholesaler and retailers.
M&+,-)5'6 C.&''-* 1-4535#'9

Marketing channel decisions are among the most crucial decisions that a company has to take. &ut a large number of companies in India donBt have sufficient information regarding type location and number of cannel members. They company chosen channels intimately off cent various marketing decision. There are few specific reasons which show the need for channel members. 7hen a new product is launched 7hen an existing product is aimed to enter the new market 7here there is change in marketing environment
F&4)#+3 5' ).- S-*-4)5#' #8 D53)+5?2)5#' C.&''-*39 'election of the appropriate distribution channel is very important because several elements of the marketing mix like price and promotion are closely interrelated with and inter dependent on the distribution channels. 8ach channel Ideal %ollege of 1rts 2 'ciences ++ 1ndhra 3niversity
member involves some cost which enters into the price of the product that the ultimate consumer has to bear.
The choice of appropriate channels of distribution is not a simple task. $ougles M 9ambert has suggest some criteria for selecting intermediaries as given
C+5)-+5& 8#+ S-*-4)-1 I')-+$-15&+5-39 (. 'ize 6rospective channel member /. 'ales strengthQ >. 6roduct line ,. 5eception leadership will established +. Market coverage C. 'ales performance =. Management *. 1dvertising and sales promotions ). 'ales compensation (-. Transportation savings 1ccording P+#8 W5**5&$ " S)&')#' has suggested a large number of factors in the choice of distribution channels. 1A M&+,-) C#'351-+&)5#' %onsumer or industrial market
+C
1ndhra 3niversity
:umber of potential consumer 'ize of order &uying habit of customers Deographical concentration of market
2A P+#124) C#'351-+&)5#' 3nit value 6roduct line 'tandardized product Technical nature bulk and weight 6erish ability
3A C#$%&'( 4#'351-+&)5#' Folume of product !inancial resources 8xperiential and competent management 'ervice provide by channel
+=
1ndhra 3niversity
$esire for control of channels
4A M511*-$-' C#'351-+&)5#' 1vailability of desired middlemen !inancial ability 1ttitude of middlemen 'ales potential %ost %ompetition and legal cons taints.
E:&$%*-3 #8 $&+,-)5'6 4.&''-*39

(. V-+)54&* $&+,-)5'6 3(3)-$ BVMSA9 It is the result failure of marketing channels when each O manufacturer O wholesaler O retailer O in one independent separate identifies seeking to achieve its own objective. /. H#+5>#')&* $&+,-)5'6 3(3)-$9 "ere two more business which an otherwise unrelated, put together efforts to exploits an emerging markets opportunities 8xampleG Maruti 3dyog, "$!% &ank, D8 %apital and etc.
+*
1ndhra 3niversity
>. T.5+1 P&+)( D-*5<-+(9 in which specialized agency is providing logistics and distribution service. 8xample 1%8 which is provide door to door service for Dodreg and Mc $onalds ,. M2*)5 4.&''-* $&+,-)5'69 In which distribution is performed by companyBs showrooms as well as channel members 8xampleG &1T1, 6"I9I6', 51;M4:$' Most producers do not sell their goods directly to the final user between produces and final users stands a marketing channel, a host of marketing intermediaries performing a variety of functions and bearing a variety of names some intermediaries such as whole sellers and retailers buy, tale title to resell the merchandise they are called merchants, others such as brokers. Manufacturers representatives and sales agents search for customers and may negotiate on the procedures behalf but do not title to the goods, they are called agents. 'till others such as transportation companies independent ware houses, banks advertising agencies assist in the distribution process. &ut neither take title to goods not negotiate purchase or sales, they are called facilitators. Marketing channel decisions are among the most critical decision facing management. The companies chooses channel intimately effect all the other marketing decision. The company pricing depends on whether it uses mass merchandisers or high <uality bouti<ues. The firmBs sales force and motivation the dealers need. In addition the companyBs channel decisions involve relatively long term commitments to other firms. Therefore management must choose channels with and eye tomorrowBs likely selling environment as well as todayBs.
+)
1ndhra 3niversity
Marketing channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption by the consumers or business user. 8ach intermediary that performs work in bringing the product and its title closer to the final buyer constitute a channel level. 'ingle the 6roducer and the final customer both perform work, they are part of every channel we will use the number of intermediary levels to designate the length of a channel.
D588-+-') T(%-3 #8 C.&''-* P#*545-39 %hannel policies are the frame work for the frame work for the achieving channel objectives. 1 manufacturer should constantly review his channel policies and make sure that are not only ade<uate, but are also the best in the situation. 1s a matter of fact, marketing policy can never be permanent in changing, according to the product or products and the manufacturing area.E
The ultimate test of a policy must be its effectiveness and economy of servicing customers. The channel of distribution policies which are adopted or chosen are from among the following methods or alternatives. INTENSIVE DISTRIBUTION POLICY9 It is a policy where a producer seeks to use as many outlets on possible in as many as place possible. The company follows the policy of mass distribution of convenience goods such as sweets, toffees, cigarette etc., which can be purchased by consumers from different types of retail shops, such as food stores, variety sores, candy
C-
1ndhra 3niversity
shops, restaurants new sands etc., intensive distribution is essential when the price of the product is <uite low buying is fre<uent and brand switching is common. SELECTIVE DISTRIBUTION POLICY 9 3nder his distribution policy the producer selects limited number of wholesalers and retail distributors and works clearly with them o further the sale of his products. The selective distribution policy is suitable in case of branded or shopping goods which carry a high unit price, and are not purchased as fre<uently as convince goods such as T.F. sets, washing machines, automobiles, air conditioners etc., goods which re<uire after sales services are often sold through selective distribution outlets. E0CLUSIVE DISTRIBUTION POLICY 9 This refers to the practice of selecting and plotting a particular distributor and exclusive area of sales territory. 1 distributor is appointed as sales territory for the sales of product or products for a particular area. The producer has to agree that he will not sell any one else except the particular distributor in that territory, or deal in any other competitive product or products. 3ltimately the exclusive policy creates prestige or image of the product, such as Dodrej 5efrigerator, Maruti %ar, &ajaj 'cooter, etc.,
CONSIGNMENT SELLING9 3nder this distribution policy goods are placed in the hands of the distributor @Middle menA with the title and control remaining in the hands of the producer. The distributor @Middle menA is neither the wholesaler nor the retailer but simply occupies the position of an agent. "e usually gets commission on the sales affected together with the
C(
1ndhra 3niversity
changes @expensesA incurred by him. The producer who owns the goods specifies to the distributor @agentA the manner, time and price of sale. The distributor neither under takes any risks nor inverts any many. The distributor is not common now a day.
FRANCHISE SELLING POLICY9 !ranchise means a privilege or exceptional right granted to a particular person franchisee selling is a system under which a producer grants the right to a certain dealer or retailers to sell his product or service, in generally defined areas, in exchange of a promise to promote and sell the product in specific manner in specified area. The owner @producerA on the product issues a license to the dealer to sell the product or products in certain areas only. The owner retains with himself to techni<ue or style with which the goods or services are sold. 'uch as the sale of coca#cola soft drinks in India. In the same way weighing machines have been installed in India at railway platforms, cinema houses and hospitals etc.
D53)+5?2)5#'
$istribution activities are used to transfer ownership to consumers and to place products, services and idea at the right time and place. $istribution is make up of two componentsG (. 6";'I%19 $I'T5I&3TI4:
C/
1ndhra 3niversity
/. %"1::89' 4! $I'T5I&3TI4: (. PHYSICAL DISTRIBUTION9 The term logistics, distribution and physical distribution are synonymous used to denote the same function. 6hysical distribution consists of all the activities with moving the right among of the right product to the right place at the right time. The aspects of overall logistics concerned with procession and delivering of customer order is physically distribution management. 6hysical distribution is essential to marketing because timely and economical distribution product delivering is necessary accomplish profitable transaction. The overall process of marketing can be broadly divided into transaction %reations physical fulfillment activities. 6hysical distribution in primary concerned with the physical fulfillment activities. The development of the 6hysical system to support modern market in a dynamic aspect of management because a firm is constantly changing parts of its marketing mix in a effort to gain and hold a competitive advantage in the market place the distribution of marketing channel is the fundamental importance to the physical distribution the channel is the area within which marketing and logistics communicate into customer transaction. Therefore a proper understanding of physical distribution one should develop a sound insight into overall nature of distribution channel , after the channel of the distribution have been established. 1 firm can turn its attention to physical distribution of its product through their channels. $istribution channel can be viewed as sets of inter depend organization involved in the marketing of a product or service available for use for competition. The strength of every manufacture lies in their effective distribution network and infect the sale of ceramic tiles depends largely or their channel network. The real power of market stays in the minds of the channel. 9ies in their effective distribution
C>
1ndhra 3niversity
network and infect the sale of ceramic tiles depends largely or their channel network. The real power of market stays in the minds of the channel.
/. N--1 #8 C.&''-* #8 D53)+5?2)5#'9 %hannels of distribution play a very important role in the flow of goods and services from the producer to the ultimate consumer. They are the backbones of marketing. The success or failure of a business enterprise depends on the role of channels of distributor. . They had place utility and the time utility. %hannels serve the consumer to bring the goods to them in a convenient shape, size , weight, unit, style and package etc., and thus they serve conveyance utility also. The channel of
C,
1ndhra 3niversity
distribution helps the producer in the expanding the market of his product from the local level to international level. They provide a number of valuable 'emites both to the producer and the customer. The importance of the channel of distribution of goods may be summarized as underG %hannel of distribution helps the consumers to buy the goods at the time and place and they need them. They create time and place utilities to the buyer. %hannels of distribution helps the consumers to buy goods in convenient units, lots, packs and assorted varieties of the products. They help the producer in his production function by relieving from marketing production. Thus the producer can pay his full attention to organize the production function only smoothly to earn a high rate of return. The channel of distribution provides information to the producer regarding the testes and needs of consumers, competition in the market, current market trend and product condition for increases volume of sales because they have complete knowledge of market. The channel of distribution help in stabilizing prices of the product by stocking the goods and balancing demand and supply. DIFFERENT ROLES IN DISTRIBUTION NETWORK CERAMICS9
1. BROKER 1n intermediary whose job is to bring together buyers and sellers, and who does not carry inventory and who does not involve financing or assuming risk.
C+
1ndhra 3niversity
2. MANUFACTURERCS REPRESENTATIVE 1 company that represents and sells the goods of several manufactures.
3. MERCHANTS 1n intermediary who buys, takes title to, and resells merchandise.
4. FACILITATOR Intermediaries who neither assist in the distribution process but neither takes title to goods nor negotiate purchases are sales.
5. RETAILER 1 business enterprises that goods or services directly o the final consumer for his or her personnel, non#business use.
D. SALES AGENT 1n intermediary who suggest for customers and negotiate on producerBs behalf but not to take title to the goods.
E. SALES FORCE 1 group of people hired directly by the company to sell its products and service its account.
WHOLE SALER BDISTRIBUTORSA
CC
1ndhra 3niversity
1 business enterprise that sells goods and services to those who buy for resale for business use.
DIFFERENT FUNCTIONS IN DISTRIBUTIONS OF CHANNELS
Marketing perform the work of moving goods from producers to consumers. It overcomes the time, place and possession gaps that separate goods and services from those who need or want them. Marketing perform a number of key functions.
INFORMATION The collection and dissemination of marketing research information about potential and current customers, competitors, and other actor and forces in the marketing environments.
PROMOTION The development and dissemination of pervasive communications designed to attract customers to the offer.
NEGOTIATION The attempt to reach final agreement on price and other terms so that transfers to ownership or possession would be effected.
ORDERING
C=
1ndhra 3niversity
Marketing channel members communication of intensions to buy to the manufactures.
FINANCING The ac<uisition and allocation of funds re<uired to finance inventories at different levels of the marketing channel.
RISK TAKING The assumption of risks connected with carrying out the channel work.
PHYSICAL POSSESSION The successive storage and movement of physical products from raw materials to the final customers.
PAYMENTS &uyerBs payment of their bill to the sellers through banks and other financial institutions.
TITLE The actual transfer of owner ship from one organization of person to another. MISCELLANEOUS o They help in forecasting sales.
o They are the source of the information at the time of marketing research.
C*
1ndhra 3niversity
o They assist the consumers in the marketing right selection of the product or products as per their re<uirements.
o They carryout various marketing activities, such as grading, sampling, packing, labeling, etc.
o They safeguard the interest of both the producers and consumers.
o They help the producer to undertake large#scale productions and to adopt modern manufacturing techni<ues by looking huge orders in advance.
CHANNEL STRATEGY $evelopment of strategies includes making the best possible selection among the channel alternatives available and designing a distribution system which is capable of exploiting the competitive strengths of the company to help attain its corporate goals. The starting point in channel strategy formulation is the defining it channel objectives, which in turn should follow from the knowledge about and user behavior, the below figure lists factors to the considered in information of channel strategy.
'tep (G Identify end user needs for services out puts.
'tep /G $efine channel objective in terms of delivering.
'tep >G $esign channel strategy by deciding upon. Ideal %ollege of 1rts 2 'ciences C) 1ndhra 3niversity
1. TYPES OF COVERAGE REQUIRED
Types of supporter sought from the channel.
6atterns of ownership sought in the channel system.
%hoice of appropriate channel system from among those available.
CHANNEL TYPES
The flow of goods from the products to the ultimate consumer may take place through different types of channels of distribution. In this connection different experts have discussed different types of distribution as given below G
6roducer
3ltimate consumer.
6roducer
5etailer
3ltimate consumer.
6roducer
7holesaler
5etailer
3ltimate consumer.
A44#+15'6 )# P.5*5% K#)*-+= F#2+ $&5' )(%-3 #8 4.&''-* #8 153)+5?2)5#' &+- &3 8#**#739 6roducer 3ltimate consumer.
6roducer
5etailer
3ltimate consumer.
=-
1ndhra 3niversity
6roducer
7holesaler
5etailer
3ltimate consumer.
6roduce 3ltimate consumer.
7holesaler
?obber
5etail
W5**5&$ " S)&)5#' .&3 3266-3)-1 ).- 8#**#75'6 85<- )(%-3 #8 4.&''-*3 #8 D53)+5?2)5#'9 6roducer 3ltimate consumer.
6roducer
5etailer
.3ltimate consumer.
6roduce
7holesaler
5etailer
3ltimate consumer.
6roducer 3ltimate consumer. 6roducer
7holesaler
?obber
5etailer
1gent
.5etailer
3ltimate consumer.
6roducer 3ltimate consumer.
1gent
7holesaler
5etailer
!rom the above it is clear that openings differ as two types of channels of distribution. PHYSICAL DISTRIBUTION The term logistics, distribution and physical distributions are synonymous used to denote the same function. 6hysical distribution consists of all activities with moving the right product to the right place at the right time.
=(
1ndhra 3niversity
The aspects of overall logistics concerned with procession and delivering of customer order is physical distribution management. 6hysical of customer order is physical distribution management. 6hysical distribution is essential to marketing because timely and economical distribution product delivering is necessary accomplish profitable transaction. The overall process of marketing can be broadly divided into transactions creations physical fulfillment activities. 6hysical distribution is primary concerned with the physical fulfillment activities. The development of physical distribution system to support modern in a dynamic aspect of management because a firm is constantly changing parts of its marketing mix in a effort to gain and hold a competitive advantage in the market place the distribution the channel is the area within which marketing and logistics communicate into customer transaction. Therefore a proper understanding of a physical distribution one should develop a sound insight into overall nature of distribution channel, after the channel of distribution have been established. 1 firm can turn its attention to physical distribution of its product through their channels. $istribution channel can be viewed as sets of inter depend organization involved in the marketing of a product or service available for competition. The strength of every manufacturer lies in their effective distribution network and in fact the sale of ceramic tiles depends largely or their channel network
DISTRIBUTION CHANNELS OF RCL
=/
1ndhra 3niversity
1s awe mentioned in the previous chapter the importance of distributions channel and its relevance of importance to 5%9. 7hich is a wide distributions network through out IndiaR
The distribution network is devided into C regions they are central ,north,east, west and south. 1 part from these, new dealers,new deports are proposed to setup at Mumbai and :agpur.
8ast Hone 7est Hone :orth zone 'outh Hone
# # # #
7est &engal, &ihar. Dujarat, 5ajastan and maharastra $elhi, "aryana, 6unjab and 3.6. 6ondichery, Tamilanadu. 1.6, 4rissa, M.6 1ssam,Tripura,Meghalaya and 1runachal 6radesh. Doa, 0arnataka.
%entral Hone # :orthwest 'outhwest # #
1t each of the above places mentioned they have regional offices to review are implement the companyBs objectives to increase the market share. 1t present the regency having >C sales depots and * regional offices to deliever the goods to customers.
ANNEL SYSTEM OF RCL
=>
1ndhra 3niversity
5.%.9 distribution channel is <uite simple and is represented below. M1:3!1%T3585
7158 "43'8
$864T'
$81985
%3'T4M85
1s mentioned above the depots and dealers are engaged in sales process. $epots mainly concentrate on project sales in bulk orders.
The promotional activities to encourage dealership and motivate them
The dealers are encouraged to visit the factory to have a better understanding of the tiles.
"ow the stock is dispatched from factoryBs warehouse to dealers is explained.
The orders from the dealers are received through couriers, fax and telex.
5.%.9. has despots and dealers as middlemen they act as a channel between manufacturer and consumer by transportation through trucks.
THE FUNCTIONS OF MIDDLE MAN Ideal %ollege of 1rts 2 'ciences =, 1ndhra 3niversity
5egency %eramics 9td has depots and dealers as middleman. They as a channel between manufacture and customers.
FUNCTIONS OF RCL DEALERS $ealers place order according to customer demand. $ealers get stock from depot to receive the stock minimum .one week of time is needed. $ealers are uses are no media for advertising. 1dvertising is done through dealers salesman and some places dealers used print media advertising. $ealers should pay a nominal amount to the company to because an executive dealership for the company. 'alaries given to dealers are in the form of turn over discount.
FUNCTIONS OF REGENCY CERAMIC DEPOTS $epots acts as a middleman between dealers and manufactures 1ccording to the consultative of dealers for the products, depots supply the product to order. $epots get the product from company %ompany sends the products to depots by the transactions of tracks .
=+
1ndhra 3niversity
1dvertising is done through personal, media, i.e @print, visual, and audioAand also by using dealers. Invoice is prepare by the depots in charge. $epots get salary from head office or company through % and ! agent. $epots as middle man between consumer and manufacture.
DATA ANALYSIS AND SURVEY 1 study on $istribution channels memo complete without studying what the dealers feel about the 5egency ceramics limited. "ence a survey on whether the dealers are satisfied with the &rand Images, <uality, 6rice provided by 5egency ceramics limited or not is conducted to understand the opinion and suggestions to get enough feed back. The survey was conducted among +- dealers residing 5ajahmundry, 0akinada who belong to different professions and different segment holders. The following pages depict the information collected from the survey and are presented in an easy#to# understand tabular and graphs after through analysis and study using statistical techni<ues, 8ach of the tables carries necessary explanation conclusions for the same.
=C
1ndhra 3niversity
1A F+#$ .#7 $&'( (-&+3 (#2 .&<- ?--' & 1-&*-+ #8 R-6-'4( %+#124)3R
N#. O8 Y-&+3 S( year (#+years +#(- years (-#/- years T#)&*
N#. O8 +-3%#'1-')3 + ( (/ /5F
P-+4-')&6- B;A (// /, ,1FF
I')-+%+-)&)5#'9 It is clear that the dealers are having faith and confident on so they are regency. 'o they are able to continue for several years. The above table shows that ,-. of the dealers has dealer ship in regency more than (- years, /,. of the dealers has dealer ship in regency between + to (- years,//. of the dealers are +to (- years, and rest of them are below year.
C#'4*235#'9 1ccording to my study most of the dealers doing business since (-#/- years and some of the dealers only doing business less then one year.
GRAPH9
==
1ndhra 3niversity
YEARS OF DEALERS
2A W.( 1# (#2 %+-8-+ )# 3-** +-6-'4( 4-+&$54 )5*-3G
=*
1ndhra 3niversity
R-3%#'3Nuality of the 6roduct 6rice low Dreater margin &rand image T#)&*
N#. #8 +-3%#'1-')3 (+ (+ /5F
P-+4-')&6- B;A >/(,1FF
I')-+%+-)&)5#'9 5egency ceramic is having good brand image in the market, they are giving second preference to the <uality. The dealers are going for regency products because of lower prices than that of competitors, 5egency is >rd place in market share, and ,-. of dealers prefer to sell the regency tiles because it has a good image (-. of dealers prefer to sell the regency products.
C#'4*235#'9 1ccording to my study most of the dealers preferred to sell 5%9 tiles based on the brand image.
GRAPH9
=)
1ndhra 3niversity
PREFER TO SELL RCL
3A W.54. *-<-* #8 4.&''-* 53 -88-4)5<- &44#+15'6 )# (#2G
*-
1ndhra 3niversity
R-3%#'3Manufacturing Ocustomer Manufacturer Owholesaler# customer Manufacturer#wholesaler #retailer# customer T#)&* I')-+%+-)&)5#'9
N# .#8 R-3%#'1-')3 (+ >/ > 5F
P-+4-')&6- B;A >C, C 1FF
1ll the members are interested in first level of distribution channel. 'ome of the people retail the material directly from the company. The distribution channel plays a vital role in the regency tiles, manufacturer# wholesaler#customer has more respondents in channel of distribution and easy way of distortion in regency.
C#'4*235#'9 1ccording to my study IInd level is most effective to reach the product to customers.
GRAPH9
*(
1ndhra 3niversity
EFFECTIVE CHANNEL
4A W.&) 53 (#2+ #+1-+ +&535'6 34.-12*-G
*/
1ndhra 3niversity
O%5'5#' Monthly "alf yearly ;early 4n demand T#)&*
R-3%#'1-')3 > ((/ /+ 5F
P-+4-')&6- B;A C //, +1FF
I')-+%+-)&)5#'9 !rom the above table C. of the dealers respond the raising his schedule monthly, /-. respond raising his schedule half yearly, /,. respond raising his schedule yearly and +-. respond raising his schedule depend upon on demand 1ll the dealers want to raise the orders depending upon the demand half of the customers are in such a practice. 5emaining all the people are used to raise time based orders in little <uantity they are not depending upon the demand.
C#'4*235#'9 1ccording to my study most of the dealers prefer to order the product on the basis of demand from the customers.
GRAPH9
*>
1ndhra 3niversity
ORDER SCHEDULE
5A D# (#2 8--* %+-3-') P&4,5'6 53 4#'<-'5-')G
O%5'5#'
R-3%#'1-')3
P-+4-')&6- B;A
*,
1ndhra 3niversity
&ad 1verage Dood 'atisfactory T#)&*
C (C (* (5F
(/ >/ >C /1FF
I')-+%+-)&)5#'9 %onsiderable number of dealers feels that the packing of regency products are above satisfactory. !ew of dealers feel it is bad. The regency has very good packaging need to attractive and the respondents are good for the buying the products. 1nd it >C. of dealers are responding to packaging deeds.
C#'4*235#'9 1ccording to my study most of the dealers says packing of product is good.
GRAPH9
*+
1ndhra 3niversity
PACKING CONVENIENCE
DA W.54. 8&4)#+3 5'8*2-'4- ).- 4#'32$-+ )# ?2( ).- R.C.L. )5*-3G
*C
1ndhra 3niversity
F&4)#+3 1dvertisement Nuality 6rice 1nother T#)&*
N#. O8 R-3%#'1-')3 + /( // / 5F
P-+4-')&6- B;A (,/ ,, , 1FF
I')-+%+-)&)5#'9 5egency <uality and price all the customers are prefer to use 5%9 products. :o influence of advertisement on 5%9 product sales. The most attractive part of regency is the price. ,,. of the respondents said that their customers are influenced by the prices. The lower price, the regency ceramics having advantage compared to competitors in material cost and transportation costs so the company fixes the lower prices.
C#'4*235#'9 1ccording to my study price factor will influence the customers to buy the 5%9 Tiles
GRAPH9
INFLUENCE OF THE FACTORS Ideal %ollege of 1rts 2 'ciences *= 1ndhra 3niversity
EA A+- (#2 3&)5385-1 75). ).- 153)+5?2)5#' #8 RCLG
O%5'5#'
N#. R-3%#'1-')3
P-+4-')&6- B;A
**
1ndhra 3niversity
:o ;es T#)&*
/> /= 5F
,C +, 1FF
I')-+%+-)&)5#'9 !rom the above table it shows that +,. of the dealers are satisfies with the distribution channel produced by the 5%9 rest of them are not satisfies because in some of the areas distribution channels are not working properly and products are not reached in time. There is no clear opinion of the dealers regarding the distribution of 5%9 products.
C#'4*235#'9 1ccording to my study most of the dealers satisfied with the distribution of 5%9.
*)
1ndhra 3niversity
N". R#$%"&'#&($
* 27
23
N"
)#$
HA W.&) 53 (#2+ 8--*5'6 &?#2) I2&*5)( #8 R C LG
O%5'5#' :ot satisfied
N#. #8 R-3%#'1-')3 =
P-+4-')&6- B;A (,
)-
1ndhra 3niversity
satisfied !ully satisfied T#)&*
/= (C 5F
+, >/ 1FF
I')-+%+-)&)5#'9 The above table shows >/. dealers told <uality of regency tiles is fully satisfied, +,. are told satisfied and remaining are not satisfied with the <uality of tiles. &ecause of the dealers are highly satisfied with products producing by 5%9 .&ecause of their <uality .They are giving the <uality products with low price and the life time of that products is high as compared to other competitors.
C#'4*235#'9 1ccording to my study most of the dealers feeling about <uality of 5%9 is satisfied.
GRAPH9
QUALITY OF THE PRODUCTS
)(
1ndhra 3niversity
JA A+- (#2 3&)5385-1 75). ).- 3-+<54- %+#<51-1 ?( ).- $&'28&4)2+-+G
O%5'5#' Ideal %ollege of 1rts 2 'ciences
N#. #8 +-3%#'1-')3 )/
P-+4-')&6- B;A 1ndhra 3niversity
:ot satisfied satisfied !ully satisfied T#)&* I')-+%+-)&)5#'9
(C /* C 5F
>/ +C (/ 1FF
!rom the above interpretation I have observed that >/. of the dealers are not satisfied and +C. of the dealers are satisfied and rest of them (/. of the dealers are fully satisfied by the service provided by manufacturer. &ecause they are providing superior service to all the dealers who are regular buyers. %onsiderable number of dealers is satisfied with the service provided by the manufacturer. This service is depending upon the area, sales <uantity etc.
C#'4*235#'9 1ccording to my study most of the dealers provided by the manufacture. are satisfied with the service
GRAPH9
SATISFACTION OF THE SERVICE
)>
1ndhra 3niversity
1FA W.( 1# (#2 7&') )# ?2( RCL %+#124)3G
O%5'5#'
N#. #8 +-3%#'1-')3
P-+4-')&6- B;A
),
1ndhra 3niversity
Dood service Dood <uality 5easonable price $emand T#)&* I')-+%+-)&)5#' 9 .
((* (* , 5F
/>C >C * 1FF
!rom the above table it represents that the dealers are always eager to buy the
5%9 products because of the following reasons. It has good <uality and reasonable prices and some times demand also plays a major role to buy the 5%9 products.
C#'4*235#'9 1ccording to my study both the <uality and price will prefer to buy the 5%9
GRAPH9
NUMBER OF THE PRODUCTS
)+
1ndhra 3niversity
11A D# (#2 %+-8-+ &'( 4.&'6-3 5' 4#$%&'( 1-&*-+3.5%G
)C
1ndhra 3niversity
O%5'5#' ;es :o T#)&*
N#. #8 +-3%#'1-')3 (+ >+ 5F
P-+4-')&6- B;A >=1FF
I')-+%+-)&)5#'9 In the above table it symbolically represent that =-. of the dealers are not interest to change the dealership and >-. of dealers are slightly switch their loyalty to other dealership because 5%9 giving more priority to the dealers rather than wholesaler.
C#'4*235#'9 1ccording to my study most of the dealers prefer to change in company dealership.
)=
1ndhra 3niversity
12A W.&) &+- ).- 3&*-3 %+#$#)5#'3 &4)5<5)5-3 ?( ).- 4#$%&'( )# ).- 1-&*-+3G
)*
1ndhra 3niversity
O%5'5#' $iscount Tour package Difts 4thers TOTAL
N#. #8 R-3%#'1-')3 /C (( (> 5F
P-+4-')&6- B;A +/ // /C 1FF
I')-+%+-)&)5#'9 !rom the above table shows that company providing the several promotional activities for attracting the dealers like they are providing discounts, tour package, gifts etcT Most of the dealers are happy to enjoy the cash discounts.
C#'4*235#'9 1ccording to my study $iscount is the main sales promotion activity by the company to the dealers.
GRAPH9
))
1ndhra 3niversity
SALES PROMOTION
13A W.-).-+ (#2 &+- 3#*- 153)+5?2)5#'3 )# ).- %+#124)3 #8 R C LG
(--
1ndhra 3niversity
O%5'5#' ;es :o T#)&*
N#. #8 R-3%#'1-')3 >/ (* 5F
P-+4-')&6- B;A C, >C 1FF
I')-+%+-)&)5#'9
!rom the above table it shows that C,. of the dealers are purchasing bulk <uantity of the products and >C. of the people are purchasing small <uantity of the product, because the demand for the 5%9 products are increasing day by day.
C#'4*235#'9 1ccording to my study most of the dealers are sole distributions to the 5%9 tiles.
(-(
1ndhra 3niversity
14A W.54. )(%- #8 423)#$-+3 &+- &<&5*&?*- 8#+ ).- R C L %+#124)3G
(-/
1ndhra 3niversity
O%5'5#'
N#. #8 +-3%#'1-')3
P-+4-')&6- B;A
&uilders "ouse holders %ompanies T#)&*
(* // (5F
>C ,, /1FF
I')-+%+-)&)5#'9 !rom the above table shows that the target customers of the company is house holders as comparative to the builders and companies ,,. of the house holders are purchasing the 5%9 products because of the high <uality and affordable prices offered by the company.
C#'4*235#'9 1ccording to my study "ouse holders type of customers are available for the 5%9 products.
GRAPH9
(->
1ndhra 3niversity
TYPES OF CUSTOMERS AVAILABLE
15A W.# &+- ).- 15+-4) 4#$%-)5)#+3 8#+ R-6-'4( C-+&$543G
(-,
1ndhra 3niversity
O%5'5#' "25 ?ohnson 0hazaria 'partek &ell T#)&*
N#. #8 R-3%#'1-')3 // (C * , 5F
P-+4-')&6- B;A ,, >/ (C * 1FF
I')-+%+-)&)5#'9 !rom the above interpretation I have observed that the main competitor of the 5%9 products is the "25 ?ohnson because they are also using similar strategies what the 5%9 %ompany used and also 0hazaria also another competitor they are offering the less price tiles as comparative to 5%9.
C#'4*235#'9 1ccording to my study "25 ?ohnson is the direct competitors for 5egency %eramics.
GRAPH9
(-+
1ndhra 3niversity
COMPETITORS OF RCL
1DA D# (#2 .&<- &'( $&@#+ %+#?*-$ 75). 153)+5?2)5#' 4.&''-*3G
(-C
1ndhra 3niversity
O%5'5#'
N#. #8 +-3%#'1-')3
P-+4-')&6-B;A
;es :o T#)&*
>, (C 5F
C* >/ 1FF
I')-+%+-)&)5#'9 !rom the above table >/.of the dealers are faced a problem with distribution channel why because at the time of transforming the goods from one place to the another place its slightly disturbing the packages and not reached at in time.
C#'4*235#'9 1ccording to my study most of the dealers have major problems with the $istribution %hannels.
(-=
1ndhra 3niversity
1EA W.&) )(%- #8 5$%+#<-$-') 5' 153)+5?2)5#' 4.&''-*3 (#2 53 -:%-4)-1G
(-*
1ndhra 3niversity
O%5'5#' Material should reach in time Nuality improvement 6ackage improvement Transit damages to be over come T#)&*
R-3%#'1-')3 ) (( (> (= 5F
P-+4-')&6- B;A (* // /C >, 1FF
I')-+%+-)&)5#'9 &y the time of goods delivered from manufacture to dealers they are facing some problem like material is not reached in time @(*.A and some of them suggested as, <uality improvement is@ /-.A and package improvement @/C.A .
C#'4*235#'9 1ccording to my study most of the dealers expect type of improvement in distribution channels is transit damages to be overcome.
GRAPH9
(-)
1ndhra 3niversity
IMPROVEMENT OF THE PRODUCTS
((-
1ndhra 3niversity
1HA A** ).- 423)#$-+3 #8 RCL &+- &44-%)3 ).- <&+5#23 35>-3 #8 ).- )5*-3G
O%5'5#' "ighly agree 1gree 'atisfy %anBt say T#)&*
R-3%#'1-')3 () (+ (/ , 5F
P-+4-')&6- B;A >* >/, * 1FF
I')-+%+-)&)5#'9 !rom the above table I have observe that >*.of the dealers respond the highly agree sizes tiles, >-.of the dealers respond the agree sizes tiles, /,.of the dealers respond satisfy the sizes the tiles and *.of the dealers canBt say be cause more sizes of the 5%9 products available.
C#'4*235#'9 1ccording to my study all the dealers are highly agree to accept the various types of tiles.
GRAPH9
ACCEPTS OF THE SI/ES
(((
1ndhra 3niversity
1JA W.54. #8 ).- 8#**#75'6 %-#%*- &+- 5$%#+)&') 423)#$-+3 #8 )5*-3G
O%5'5#'
N#. #8 +-3%#'1-')3
P-+4-')&6- B;A
((/
1ndhra 3niversity
5ural markets 3rban market %ity markets T#)&* I')-+%+-)&)5#'9
(+ (+ /5F
>>,1FF
!rom the above table I have observed that as compare to rural, urban, and city marketers are hard core customers because they are having good awareness about the 5%9 products and know the <uality of the products. :o clearly is deciding which area people is hard core loyalty to 5%9 products.
C#'4*235#'9 1ccording to my study %ity market people are more important customers of tiles.
GRAPH9
HARDCORE CUSTOMERS
((>
1ndhra 3niversity
FINDINGS
It was observed that 5egency %eramic 9imited was not providing the credit !acilities to their dealers.
((,
1ndhra 3niversity
It was found that the company having the good market coverage.
It is also found that 5%9 is prompt in delivery of orders.
It was observed that there is dissatitisfaction among 5%9 dealers for margin6rovided by company.
It was found that most the dealers are happy with the supply of 5%9 tiles.
It was found that <uality and price are two vital factors, which influence%onsumer behavior in ceramic purchase.
It was found that most of the dealers are very experienced and loyal to 5egency %eramic Tiles for more than + years
Many ceramic $ealers want to display more than one brand indicating variety seeking consumer price sensitivity of the consumer and competitor in the Indisttry.
SUGGESTIONS
The company should provide the variety of tiles to attract the dealers. Ideal %ollege of 1rts 2 'ciences ((+ 1ndhra 3niversity
Most of the dealers are not happy with the margin provided by the company. 'o the company should increase the margin to dealers.
The company should increase promotional activities in summer when construction activities increase.
The company should implement of gift to the customers or the dealers.
Most of the dealers want credit facility, so the company has to provide credit, in order to improved dealer satisfaction.
The company marketing officers should visit the dealers and meet the customer to know their opinion and to wards the 5%9 Tiles.
CONCLUSION
4n going to the study KDISTRIBUTION CHANNELSL in 5egency %eramics 9imited, ;anam.. The performance of the company improving year by year. The
((C
1ndhra 3niversity
company sales were increased rapidly compared to the previous years in both domestic and as well as exports. The increase in sales due to the reputation of the company and the brand image on pricing strategies.
The company sales are increased extraordinarily by maintaining good <uality and the product is available at chapter rates even though they are not promoting the product in mass media.
The company products are available to all types of consumers why because they are maintaining proper price strategies and they are making the product available to the customers by nearly C+- dealerBs whole over India by a wide distribution channels.
In overall survey only some of respondents 0nows about the company through advertising ,around some of the respondents suggested some change in packing size , in the surer around most of the respondents suggest to introduce new offers and by observation . I found that some of the dealers outlets are form the distribution net work.
1fter completing the analysis I found the advertising campaigns of the company are very low when compared with competitors.
"ence more concentration on advertising is re<uiring new packing size should be introduced in order to get more market share. It is concluded that response is good with reference to 5%9 tiles.
((=
1ndhra 3niversity
If the company made the above suggestion change the company which set right its drawback and gets advantages only competitors , $ue to which the share and net profit will be increased.
BIBLOGRAPHY
Marketing Management
6hilip 0otler
((*
1ndhra 3niversity
5esearch Methodology
%.5. 0othari
6eriodicals
&usiness Today &usiness 7orld
6ublications
%ompany Invoices %ompany &roachers 1nnual 5eports
7ebsite
www.regencyceramics.com
QUESTIONNARIE
(. F+#$ .#7 $&'( (-&+3 (#2 .&<- ?--' & 1-&*-+ #8 R-6-'4(R aA (#> year bA >#C years
(()
1ndhra 3niversity
cA C#(- years
dA U(- years
2A W.( 1# (#2 %+-8-+ )# 3-** +-6-'4( 4-+&$54 )5*-3G aA Nuality of the 6roduct cA Dreater margin bA 6rice low dA &rand image
>A W.54. *-<-* #8 4.&''-* 53 -88-4)5<- &44#+15'6 )# (#2R aA Manufacturing Ocustomer bA Manufacturer Owholesaler#customer cA Manufacturer#wholesaler #retailer# customer
4A W.&) 53 (#2+ #+1-+ +&535'6 34.-12*-R aA Monthly cA ;early bA "alf yearly dA on demand
+A D# (#2 8--* %+-3-') P&4,5'6 53 4#'<-'5-')R aA &ad cA Dood bA 1verage dA 'atisfactory
DA W.54. 8&4)#+3 5'8*2-'4- ).- 4#'32$-+ )# ?2( ).- R.C.L. )5*-3R aA 1dvertisement cA 6rice bA Nuality dA 1nother
(/-
1ndhra 3niversity
=A A+- (#2 3&)5385-1 75). ).- 153)+5?2)5#' #8 RCLG aA :o bA yes
HA W.&) 53 (#2+ 8--*5'6 &?#2) I2&*5)( #8 R C LR aA :ot satisfied bA satisfied cA fully satisfied
JA S&)538&4)5#' #8 3-+<54- %+#<51-1 ?( ).- $&'28&4)2+-+R aA :ot satisfied bA satisfied cA fully satisfied
1FA W.( 1# (#2 7&') )# ?2( RCL %+#124)3R aA Dood service cA 5easonable price bA Dood <uality dA $emand
11A D# (#2 %+-8-+ &'( 4.&'6-3 5' 4#$%&'( 1-&*-+3.5%R aA :o bA ;es
12A W.&) &+- ).- 3&*-3 %+#$#)5#'3 &4)5<5)-3 ?( ).- 4#$%&'( )# ).- 1-&*-+3R aA $iscount cA Difts bA Tour package dA 4thers
13A W.-).-+ (#2 &+- 3#*- 153)+5?2)5#'3 )# ).- %+#124)3 #8 R C LR aA ;es bA :o
14A W.54. )(%- #8 423)#$-+3 &+- &<&5*&?*- 8#+ ).- R C L %+#124)3R aA &uilders bA "ouse holders cA companies
(/(
1ndhra 3niversity
(+A W.# &+- ).- 15+-4) 4#$%-)5)#+3 8#+ R-6-'4( C-+&$543 )# (#2R aA "25 ?ohnson cA 'partek bA 0hazaria dA &ell
1DA D# (#2 .&<- &'( $&@#+ %+#?*-$ 75). 153)+5?2)5#' 4.&''-*3R aA :o bA ;es
1EA W.&) )(%- #8 5$%+#<-$-') 5' 153)+5?2)5#' 4.&''-*3 (#2 53 -:%-4)-1G aA Material should reach in time cA 6ackage improvement bA Nuality improvement dA Transit damages to be over come
1HA A** ).- 423)#$-+3 #8 RCL &+- &44-%)3 ).- <&+5#23 35>-3 #8 ).- )5*-3G aA "ighly agree cA 'atisfy bA 1gree dA canBt say
1JA W.54. #8 ).- 8#**#75'6 %-#%*- &+- 5$%#+)&') 423)#$-+3 #8 ).-3- )5*-3G aA 5ural markets bA 3rban market cA %ity markets
(//
1ndhra 3niversity

Channel of Distribution

Uploaded by

Copyright:

Available Formats

Channel of Distribution

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Channel of Distribution

Uploaded by

Copyright:

Available Formats

INTRODUCTION

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

%eramic tiles are man making.

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

TOTAL MARKET SHARE OF CERAMIC COMPANIES

Ideal %ollege of 1rts 2 'ciences

Total market Share

16.1 2.6 4.3 7.5 8.2 10.6 10.7

REGENCY CERAMICS SAMANY PILKINGTON SPARTEK

KHAJARIA BELL MURU ES!AR CERAMICS ECORS ANATRAJ CLAY OTHERS

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

3nglazed tiles are not <uoted with any glaze.

Ideal %ollege of 1rts 2 'ciences

APPLICATIONS OF CERAMIC TILES

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

NEED FOR THE STUDY

Ideal %ollege of 1rts 2 'ciences

OB"ECTIVE OF THE STUDY

To study ceramic industry is general.

To study the distribution channels of The 5egency %eramics limited.

To study the performance and growth of The 5egency %eramics limited.

To suggest effective measures and necessary improvements in distribution.

Ideal %ollege of 1rts 2 'ciences

SCOPE OF THE STUDY

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

The period of the project is limited to * weeks only.

'ome dealers are not responding because of their busy work.

'ome of the dealers are responded across the telephones.

$ue to the lack of time, I have obtained little information.

'ample size is restricted to distributors of 8ast Dodavari $istrict.

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

FUNCTIONAL MANAGEMENT OF REGENCY

'"I!T 1 & % Deneral 'hift

TIM8 Cam to /pm /am to (-pm (-pm to Cam *G>-am to+G>-pm

Ideal %ollege of 1rts 2 'ciences

((+ /*+ =+ /--C+-

Ideal %ollege of 1rts 2 'ciences

Ideal %ollege of 1rts 2 'ciences

FLOW CHARTS M&'28&4)2+5'6 %+#4-33 8#7 4.&+) 8#+ 8##+ )5*-3

M&'28&4)2+5'6 %+#4-33 8#7 4.&+) 8#+ 5'123)+5& )5*-3

E:&$%-3 #8 $&+,-)5'6 4.&''-39