Manish Sharma SIP
Manish Sharma SIP
Manish Sharma SIP
Summer Internship Project Report on A Study Of Distribution Channel Of Batteries For Exide Industries Limited
Undertaken at
Prepared By:
Manish Sharma
(Student Roll No. 12GM0) Company Guide (Name) (Designation) Faculty Guide Rustam Borah
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CERTIFICATE
This is to certify that the Project Report entitled A study of distribution channelof batteries for Exide Industries ltd is a record of project work done byMr. Manish Sharma at Exide Industries ltd,Jaipur under my guidance and supervision and that it has not previously formed the basis for the award of any degree, fellowship or association with the same.
Date
Faculty Guide
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DECLARATION
I hereby declare that this project report entitled A study of distribution channel of batteries for Exide Industries ltd is a bona fide record of work done by me during the course of Summer Internship Project atExide Industries ltd,Jaipur and it has not previously formed the basis for the award to me for any degree/diploma, association, fellowship or other similar title of any other institute or society.
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ACKNOWLEDGEMENT
This project has enabled me to acquire essential learnings, insights and experiences which has led to a new surge of development. This is the result of dedication of few people towards progress of the project to its conclusion. I would like to extend my sincere gratitude to my Corporate Guide for granting me the opportunity to work on this project which provided me an insight into the various tools and techniques of distribution channel of exide Industries. His valuable experience and constant guidance at every step has been instrumental in successful completion of this project. Also I would like to extend my appreciation to all the people at Exide Industries Ltd., Jaipur for their warm welcome and acceptance. I also would like to thank them for their continuous co-operation, support and sparing their precious time to provide me valuable information about the working of various departments. It is with deep sense of gratitude that I express my thanks to , HR Manager, Exide Industries, for his generosity in allowing me to do my project, for his interest and for the encouragement rendered. I would like to thank Mr..., Area Manager and Mr., Assistant Sales Manager, Exide Industries, for this incisive and objective guidance for entire project. I wish to thank all executives and staff of the company fortheir support to the project.
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S.NO 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
TITLE INTRODUCTION INDUSTRY PROFILE COMPANY PROFILE PRODUCT PROFILE TYPE OF EXIDE INDUSTRIAL BATTERIES ADVANTAGES OF DIFFERENT KINDS OF PRODUCT TYPE OF AUTOMOTIVE BATTERIES PROJECT PERSPECTIVE CHANNEL OF DISTRIBUTION FUNCTIONS OF DISTRIBUTION CHANNEL FUNCTIONS OF MIDDLE MEN OBJECTIVE OF THE STUDY OBJECTIVE SCOPE OF THE STUDY LIMITATIONS OF THE STUDY METHODOLOGY RESEARCH DESIGN QUESTIONNAIRE DESIGN DATA COLLECTION PROCEDURE PERIOD OF STUDY
PAGE NO 06 07 08 09 09 09 11 12 12 13 13 14 14 15 15 15 16 17 18 18
23 24 25 26 27 28 29
SAMPLING PROCEDURE TOOLS USED PILOT STUDY DATA ANALYSIS AND INTERPRETATION RESULTS SUGGESTIONS AND RECOMMENDATIONS CONCLUSION APPENDICES REFERENCES
18 19 20 21 31 33 34 35 37
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INTRODUCTION Battery is the most commonly used item in the field of Automobiles, IndustrialSectors, Power Stations, Railways, Submarines, etc. Battery plays a vital role insupplying power where electricity could not be used. Industrial batteries are used forUPS, Inverters, systems, power plants, Telecommunications, Motive power drives anddifferent Railways applications. Automotive batteries are used for vehicles for thepurpose of Horn, light, listening Music, watching picture, etc. Man could not be dependon electricity in case of moving machines like vehicles, so in that case Battery serves tobe good alternative.
Battery plays an important role when the electricity fails. Nowadays when electricity fails, suddenly people are switched over to the Generator to make the poweravailable at any time. When the person is working with the computer the power isessential for the computer continuously, at that time they are using UPS for the regularsupply of power to the computer even electricity fails. So like this Industrial batteryplays an important role in many ways.
Though those batteries are efficiently made, there is no use if those manufactured batteries are not properly distributed through correct channels.
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INDUSTRY PROFILE Todays era where power is the major drive for development, Battery plays a pivotalrole towards the development. Industrial Batteries are the backbone of any system thatgenerates power, conditions power or processes power. Industrial
batteries are used forUPS, Inverters, systems, power plants, Telecommunications, Motive power drives anddifferent Railways applications. Automotive batteries are used for vehicles for thepurpose of Horn, light, listening Music, watching picture, etc. With the global thrust onPower generations, Infrastructure development and Information technology relateddevelopments; Lead acid battery has immense potential for growth. Presently Indian battery industry is worth 2500 crores in Indian Rupees. The Domestic market is growingat the rate of 20% per annum.
The Market share of Automotive Battery is 85% and the market share of Industrial Battery is 50%. Further technological development in Lead Acid Battery technology will cater the need of more efficient and compact battery systems, ultimatelysatisfied the consumers.
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COMPANY PROFILE
Exide Industries Limited was started in the year 1947 by the name Associated Battery Makers (Eastern) Ltd (ABMEL) at Shamnagar, West Bengal. ABMEL become a public limited company in the year 1960. After that the second factory setup in Chinchwad, pune. ABMEL was renamed as Chloride India Ltd in the year 1972. In 1976 R&D centre was established at Kolkata. In 1981 third factory was setup at Haldia, West Bengal. After that Chloride India Ltd was again renamed as Chloride Industries Ltd. In 1995 Chloride Industries was renamed as Exide Industries Limited. In 1997 fourth was setup at Hosur and Tamilnadu.
For over 74 years, Exide Industries Ltd has pioneered battery technology in India.Formerly known as Chloride Industries Limited, the company was a part of the chlorideGroup PLC UK. The leader in the packaged power technology. Exide is today Indiaslargest storage battery company with global affiliations and internationally reputedbrands having nine factories strategically located all over India.
VISION:
To win our customer, stakeholders and employees by transferring Quality into a performance oriented business, which will secure market Leadership and profitable growth through effective fulfillment of customer Needs.
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PRODUCT PROFILE
TYPES OF EXIDE INDUSTRIAL BATTERIES: EXIDE PLANTE EXIDE TUBULAR EXIDE VRLA EXIDE POWERSAFE EXIDE EL TUBULAR EXIDE LITE EXIDE INVAKING 1500 EXIDE HSP CLASSIC
ADVANTAGES OF DIFFERENT KINDS OF PRODUCT: The TUBULAR Battery has a very robust construction and can provide 1200 to 1500 cycles of charge and discharge before its capacity Degrades to 80% of its rated capacity and is fit for replacement.
The TUBULAR Battery provides a life of around 10 to 12 in Power Stations if maintained properly.
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The VRLA Batteries are stackable and hence smaller floor area and smaller floor area and smaller battery room.
The VRLA Batteries has very good high discharge performance and hence smaller capacity VRLA Battery can do the same job as a larger capacity tubular battery.
The PLANTE Batteries require water topping up only once in three Years if the battery room is not too hot. Even in higher ambience, once in two years topping up is quite adequate.
The PLANTE cells do not lose any capacity till the end of their life. Hence, unlike TUBULAR and VRLA Battery, 20% margin need not be added to the required PLANTE Battery capacity. This further reduces the cost differential between PLANTE and other batteries.
TheEXIDE INVAKING 1500 has extra heavy duty plates as perexclusive EXIDE design ensuring durability, resistance to corrosion and inbuilt margins for high ambient temperature and vibrations.
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EXIDE ATB
EXIDE MAX
EXIDE FREEDOM
DAGENITE
INDEX
LUCAS
DYNEX
CONREX
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PROJECT PERSPECTIVES
Channel of Distribution
A Distribution Channel consists of the set of people and firms involved in the flow of title to a product as it moves from producer to ultimate consumer or business user. A Marketing Channels are sets of interdependent organizations involved in the process of making a product or service available for use or consumption. A Channel of distribution always includes both the producer and the final customer for the product in its present form as well as any middlemen such as retailers and wholesalers.
Definition:
Distribution Channel can be defined as The marketing channel performs the workof 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. A distribution system is a key external resource. Normally it takes years to build, and it is not easily changed. It ranks in importance with key internal resources such as manufacturing, research, engineering and field sales personnel and facilities.
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To find out the market share of the Exide batteries using the sales made by the
various dealers.
To find out the satisfied level of the customers through the preference of the
dealers.
To find out reasons behind dealers willingness to deal with different kinds of
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Market share was found through the average sales per month was disclosed approximately by the dealers. (Since its not consistent for every month).
METHODOLOGY
The Study was conclusive and empirical in nature. The data was collected basically by the Primary and Secondary data. The Primary data was collected by Survey that is conducted by the use of Questionnaire. Secondary data was collected by the Secondary Sources like the Company records, magazine and Newspapers.
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Research Design
Marketing research design specifies the procedure for concluding and controlling the research project. The choice of particular research design follows for the problem. The following are the main elements of research design.
1. Types of Data
Type of the data is exploratory which gives major emphasis is on the discovery of ideas. From this we can find out the factors of attributed used in a purchase decision the way consumer influenced by communication and also establishes priorities for future research.
2. Source of Data
The primary data for the research design has been collected by meeting the potential customers in the various retail outlets in various parts of the Jaipur city.
3. Form of Data
Questionnaire, which has qualitative and quantitative data, has been used as a tool to collect primary data.
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Questionnaire Design A Questionnaire was developed to analysis the distribution network of Exide Industries Limited. The questionnaire was constructed based on an in-depth interview with the different battery dealers. The questionnaire made after gaining enough exposure on the company, product and market, which was made possible after discussion with knowledgeable persons of the company. The questions are structured and direct so as to make the respondent understand it easily. All together about 10 questions were framed which took about 5 to 7 minutes to answer. A model of this questionnaire is enclosed in the annexure. The questionnaire elicited the following informations. Customer preference based on dealers opinion Customer Response for various batteries Customers opinion about price Attributes towards customer preference Type of Batteries having more sales
- Reason for the preference of batteries by the customer opinion through Dealers Order quantity per time by the dealer (month wise) Sales of various type of batteries by the dealers Sales turnover per month by the dealers Dealers opinion about Exide Retailer reference of Sales promotional activity Media prefer for the advertisement
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The modified questionnaire was used it collecting the primary data from the dealers. The dealers were asked each question and the information is noted by the researcher in the answer sheets.
Initially before asking the questionnaires good co-operations were obtained fromthe dealers while asking the questions to collect the data. The questions were asked in a
structured order. Any doubts that the dealer had were clarified so as to collect the right answer from the dealers.
Period of Study
The fieldwork was carried out from 1st June 2013 to 20th July 2013; the secondary data was taken through the company records, newspapers, and business magazines. Secondary data consists of information that already exists, which was also taken for this study purpose
Sampling Procedure Survey was made with random sampling. From that 100 sample was taken by the probability method.
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Tools Used
A questionnaire was developed to analysis the effective distribution network of Exide Batteries. The questionnaire was constructed based on an in-depth interview with Battery dealers. The questionnaire made after gaining enough exposure on the company product and market, which was made possible after discussion with knowledgeable persons of the company.
The questions or structured and direct so as to make the respondent understand it easily. Rating scale was adapted to measuring the respondents. All together about the question were formed which took about 5 to 7 minutes to answers. A model questionnaire is enclosed in the Annexure the questionnaire elicited the following information.
Customer preference based on dealers opinion Customer Response for various batteries Customers opinion about price Attributes towards customer preference Type of Batteries having more sales Reason for the preference of batteries by the customer opinion through dealers Order quantity per time by the dealer (month wise) Sales of various type of batteries by the dealers
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Pilot Study A Pilot study was conducted to find out the feasibility of the questionnaire. The sample of 10 dealers from Jaipur city was randomly selected and administered the questionnaire. Any modification that the researcher felt essential was carried out so as to make questionnaire easily understandable.
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54 52 50 48 46 44 42 GOOD BAD 1
INTERPRETATION:-
Shows the customer response level for Batteries based on sellers opinion. 54 Respondents opinion is satisfied and 46 respondents is not satisfied. The company has to utilize this attitude to achieve the companys goal
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TURNOVER PER MONTH BELOW 50,000 50,000 1,00,000 1,00,000 5,00,000 ABOVE 5,00,000 TOTAL
INTERPRETATION:Shows the distributors, dealers turnover per month, 12% of the Respondents turnover per month is below 50,000, 44% of the respondents turnover per month is 50,000 1,00,000. 39% of the Respondents turnover per month is 1,00,000 5,00,000 and 5% of the Respondents turnover per month is above 5,00,000. From this finding the company can decide the credit limit, discount rate and fixing the schemes.
BRAND PREFERENCE IILM-AHL 22 IILM Academy of Higher Learning
BRAND NAME Exide AMARARAJA AMCO OTHER DEPENDS UPON THE VEHICLE Total
BRAND NAME 56 17 10 7 10
PERCENTAGE(%) 56 17 10 7 10
100
100
60 50 40 30 20 10 0 1
INTERPRETATION:Shows the Brand prefer by customer based on sellers experience. The Exide battery was preferred by 56% of the customer. To make the remaining 46% of the customer to purchase Exide, the company need to reduce the cost and they need to give discounts
COMPANIES DEALT BY DEALERS IILM-AHL 23 IILM Academy of Higher Learning
68 34 22 15
68 34 22 15
INTERPRETATION: Shows the companies dealt by dealers, 68% of the dealers are dealing Exide. To make the remaining dealers are to sell Exide, the company need to give more margin for the dealers and to give more credit period for the dealers.
BUYERS PREFERENCE TOWARDS PURCHASE OFBATTERIES IILM-AHL 24 IILM Academy of Higher Learning
PERCENTAGE(%) 57 43 100
60 50 40 30 20 10 0 MANUFACTURER DISTRIBUTOR 1
INTERPRETATION Shows the Buyers preference towards purchase of Batteries, 57% of the dealers are purchase the product from the manufacturer and remaining 43% of the dealers are purchase the product from the distributor
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PERCENTAGE(%) 17 10 73 100
INTERPRETATION Shows the duration of ordering the product by the dealers and distributors.17% of the Respondents are ordering the product monthly, 10% of the respondents are ordering the product weekly and remaining 73% of the respondents are ordering the product according to the demand. To make the dealer for stock the product the company needs to give more credit period for the dealers as well as for the distributors.
ATTRIBUTES PREFERRED BY THE CONSUMERS ON EXIDE (Based on dealers opinion)
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PERCENTAGE(%) 42 31 20 7 100
45 40 35 30 25 20 15 10 5 0
INTERPRETATION Shows the attributes preferred by the consumers on Exide based on dealers opinion. 42% of the respondents prefer Brand name, 31% of the
respondentsprefer Quality is needed. 20% of the respondents prefer the product according to the costof the product, so the company needs to reduce the cost as much as possible and givemore discount for the customers
CREDIT PERIOD DISTRIBUTOR FROM THE MANUFACTURER OR
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DURATION < ONE MONTH > ONE MONTH CASH ON DELIVERY TOTAL
PERCENTAGE(%) 34 40 26 100
INTERPRETATION Shows the credit period given by the manufacturer or distributor to the dealer. 34% of the respondents are getting less than one-month credit period from themanufacturer or distributor. 40% of the respondents are getting more than one monthcredit period from the manufacturer or dealer and remaining 26% of the respondents arepurchase the product by ready cash
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PERCENTAGE(%) 90 10 0 100
INTERPRETATION Shows type of batteries having more sales. 90% of the respondents are dealing automotive batteries and remaining 10% of the respondents are dealing industrialbatteries. To improve the sales of industrial batteries the company needs to give morecredit period for the industrial batteries and make the dealers to stock the product
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60 50 40 30 20 10 0 1
INTERPRETATION Shows the retailer preference of sales promotional activity. 53% of the respondents choose the discount as a sales promotional activity, 12% of the respondentsare responding coupon and 22% of the respondents are responding Advertisement and13% for gifts as a sales promotional activity to improve the sales of the product
From the table it is clear that Exide has scored highest points. So it Rank Number one followed by Amco, Amararaja, Su-kam and Okaya.
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RESULTS
On analysis of the primary data the following points were identified. The survey sample size is 100. 1) Most of the dealers in the survey fall under the turnover of 50,000 1,00,000 (44%).
2) The customer response for Batteries is good for 56% and 44% are poor based on dealers opinion.
3) 57% of dealer purchase the product from the manufacturer and remaining 43% of dealer purchase the product from the distributors.
4) 68% of the dealers are dealing Exide Batteries. 5) Customer preference for Exide Battery is 56% based on dealers experience.
6) The reason for recommending Exide is because of Good Brand name with 42% respondents.
9) 20% of the dealers are satisfied with the Service provided by Exide.
10) Most of the dealers are dealing other brands because; the cost of Exide is very high when compared to other brands.
11) According to the weighted average points, Exide is in the first place followed by Amco, Amararaja, Su-kam and Okaya based on certain attributes like brand name, IILM-AHL 31 IILM Academy of Higher Learning
12) 17% of the dealers are ordering the product monthly and 10% of the dealers are ordering the product weekly.
13) 73% of the dealers are ordering the product according to the demand.
14) Apart from Exide, 32% of the dealers are dealing other Company batteries like Amararaja, Amco, Okaya and Su-kam.
15) 34% of the respondents are getting less than one-month credit period from the supplier and 40% of the respondents are getting more than one-month credit period from the supplier.
16) 26% of the respondents are receiving cash discount from the supplier while they purchase the product with cash on delivery (COD).
17) The sales percentage of Automotive battery is 90% and the Industrial battery is 10%.
18) For the requirement of sales promotional activity 53% of the respondents are responding for Discounts followed by Advertisement 22%, Gifts 13% and for Coupons 12%.
19) Advertising media preferred by the dealers to attract more customer is Television with 45%, Newspaper with 28% followed by Poster 12%, Magazine 10% and 5% of the respondents prefer to advertise in Radio. 20) 58% of the respondents are satisfied with the suppliers delivery period and 42% of the respondents are not satisfied with the delivery period.
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1. If the credit period is extended to two months, the dealers can stock out products than the other brands since most of the dealers are ordering the product according to the demand. 2. The company has to take necessary steps to reduce the cost of the product.
3. The company need to take necessary steps by giving 2 months credit period and by giving 6% discount for the dealers who are dealing other brands rather than Exide.
4. The company has to take necessary steps to motivate small dealers also, through promotional activities and introduce new schemes.
5. Company representatives have to contact the distributors and dealers atleast twice a month.
6. The percentage of the commission has to increased to motivate the dealer around 2% to 5%. 7. As the brand image is one of the creative features to influence the customers while they are purchasing the battery, it can be done by effective advertisements through the Television media more than print media.
8. The company need to take necessary steps for quick delivery to avoid stock shortage. They need to deliver the product as quick as possible, since most of the dealers are ordering the product according to the demand wise.
9. The company still needs to take steps for the after sales service and the service need to be quick as much as possible.
CONCLUSION
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An analytical study on distribution channel in Exide industries Limited has helped in arriving at valuable conclusion through the analysis of primary data collected. The study revealed that the company can improve the effectiveness of present network system by motivate and encourage the dealers in terms of quick delivery in all areas, percentage of commission, good advertisement support, quick after sales service and try to reduce the cost of the product. With this strategy when they go for marketing plans, this Exide Battery can still hold the position of leader in the market
APPENDICES
QUESTIONAIRE Name of the Retailer: IILM-AHL 34 IILM Academy of Higher Learning
Address :
1. What are the Companies you are dealing? Exide Amco Amararaja Su-kam Okaya All
2. How is the response from Consumers from the Batteries? Good Poor 3. What is the Consumers opinion about price? Low Moderate High 4. Which Brand do Customer Prefer more? Exide Amararaja Amco Su-kam Okaya Others Depends upon the vehicle
5. What are the attributes, which Customer prefer (based on your experience)? Brand name Product Quality Price Maintenance
6. If a Customer does not mention any brand, which brand do you suggest normally? IILM-AHL 35 Exide Amco Amararaja Su-kam IILM Academy of Higher Learning
Okaya others Depends upon the customer vehicle 7. What it is the reason for the preference? Brand Name Quality Price Margin Maintenance Service
8. How do the Manufacturer help in selling the product? Sending sales representative Giving Training 9. Where do you buy the Batteries? Manufacturer Distributor 10. How the Manufacturer/Distributor gets the order from you? Sales Representative Phone
Marketing Management
- Philip kotler
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Statistical Methods
- S P Gupta
Research Methodology
- Uma sekaran
Research Methodology
- C R Kothari
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