A Study on

MARKETING MIX STRATAGIES

With reference to VAMSADHARA PAPER MILLS LTD, MADAPAM A Project Report Submitted to Andhra University in Partial Fulfillment Of The Requirement For The Award Of the degree BACHELOR OF BUSINESS MANAGEMENT Submitted By BAGADI CHANDRA MOHANA RAO Regd. No: 20899015005 Under the guidance of Sri. V. MAHESH, MBA., (Ph.D.) Assistant Professor

Gayatri College of Science and Management

Accredited with B+ by NAAC and ISO 9001:2008 certified

(Affiliated to Andhra University) Munasabpeta, Srikakualm 2008 - 2011

CERTIFICATE

This is to certify that Mr. Bagadi Chandra Mohana Rao Student of BBM, Gayatri College of Science And Management, Munasabpeta, Srikakulam has undertaken his project on the topic A Study On Marketing Mix Strategies In Vamsadhara Paper Mills Ltd, Madapam is a bonafied work under my guidance.

(V .MAHESH) Project Guide

DECLARATION

This project report titled A Study on Marketing Mix Stratagies In Vamsadhara Paper Mills Ltd, Madapam submitted to Andhra University in partial fulfillment of the requirements for the award of the degree Bachelor of Business Management by me under the guidance of Sri. V. Mahesh is my original work. The findings of this report are based on the information collected by me during the study, and it has not submitted to any other university for award of any degree or diploma earlier.

Place Date:

Bagadi Chandra MohanaRao

ACKNOWLEDGEMENT

With the active support, assistance and timely guidance of my teachers, company staff and well-wishers only, I would be able to do this project work. It is my profound duty to acknowledge all those who render their valuable and generous help in their own ways. The project work has been carried out under the supervision and guidance of Assistant Professor Sri. V. Mahesh, Head of the Department and Faculty of Department of Management Studies, Gayatri College of Science and Management, Munasabpeta, Srikakulam. I am highly indebted to him for his unstinted cooperation in the preparation of this thesis. In spite of his preoccupations and engagements, he has spared his precious time, evinced keen interest and meticulous care at every stage of my project work, I owe him much more than I can render in words. I wish to express my deep sense of gratitude and indebtedness to my external guide Sri Nageswara Rao, Marketing Manager, Vamsadhra Paper Mills Pvt. Limited, Madapam who took all the pains to make this report a meaningful one. His able guidance, inspiration, encouragement and support helped me a lot during the project work. It is my duty to acknowledge my deep sense of gratitude to all the faculty members of Department of Management Studies, Gayatri College for PG Courses, Munasabpeta for encouragement and guidance through out my studies in the college. And I also extend my sincere thanks to the Management of Gurajada Educational Society to offer an opportunity to study BBM in their esteemed institution. I thank my friends and classmates who have generously extended their help and support to enable me to carry out this project work. Finally, I am extremely thankful to my father Sri Jogi Naidu, my mother Smt. Vara Lakshmi, my Sister Smt. Roja Rani and Brother in Law Sri. Adi Naryana for their co-operation, encouragement, and support enabled me to devote my all energies to complete this work even at the cost of my domestic responsibilities. B.CHANDRAMOHANA RAO

CONTENTS

Pg.no Chapter I INTRODUCTION

1.1 1.2 1.3 1.4 1.5 Introduction of MARKING MIX STRATAGY Need for the study Objectives and Goals of the Study Methodology Limitations

Chapter - II
2.1 INDUSTRY PROFILE COMPANY PROFILE

2.2

Chapter III 3.1 4.1

THEORITICAL FRAME WORK

Chapter IV
DATA ANALYSIS percent INTERPRETATION

Chapter - V
5.1 5.2 5.3 5.4 5.5 Findings Suggestions Summary Annexure Bibliography

CHAPTER 1
INTRODUCTION NEED FOR THE STUDTY OBJECTIVES OF THE STUDY SCOPE OF THE STUDY METHODOLOGY LIMITATIONS

INTRODUCTION
The beginning of modern paper industry in India is related to Dr.William Carrey. The renewed Baptist missionary of semaphore. He was the pioneer in erecting the first marketing mention. He made the machine produced paper in 1832at sera pore. The place where he started making hard made paper several years before In 1867, the first commercial paper mill the royal paper mill was established at Bally (near Calcutta). This took over Dr.careys plant and machinery but in course of time it developed into a fourmachine mill with and machinery but in course of time it developed into a four-machine mill with an output of about 5000 tons of paper per annum this mill produced low-grade paper by using rags, jute cutting and west paper as raw materials. The first mills based on lengno cellulosic raw material. The upper India coupler paper mill was established at luck now in 1879. It commenced as production of paper in 1884. Both these mills used mostly MOONI AND SABAI grass as raw material to produce high-grade white paper. The Bengal paper mills Established in 1889, began working in 1691 and began working in 1891 at raniganj in Bengal. It began to produce about 8,500 tons per annum. On account of compulsory education in Europe and America the demand for paper went up. The prices of paper shop up due to this phenomena. Hence it become necessary to expand paper manufacturing activates. This brought the opportunity to the door steps of India to expand the paper industry. It receive a further filling in 1881. When India Government announced as policy of giving preference to hand mode goods for the purpose stores.

Further the introduction bamboo as suitable raw material for pulp in proved a boon to the industry. Papermaking was further developed based on this raw material. The is of bamboos a raw material exceeded to 60 percent which came down to 40-53 percent in 1983.In 1912 the titagarh paper mills adopted it equipment to the bamboo technology on a limited scale they it became the pioneer unit in this regard. However, the first paper mill to produce paper wholly form bamboo was set up at naihati about 50 kms to the north of Calcutta. Thus bamboo became the main storage of the paper industry as raw material. During the first world war (1914-18),the industry progressed well on ac-count of heavy demand of paper in the country. The subsequent years it suffered a server set back on two counts. Keen foreign competition General market recession

The India paper industry has to struggle for survival during this period. In fact some from this ugly situation Government of India levied as protective duty on imported paper through bamboo paper industry act, 1952. This was particularly to provide shelter to the indigenous bamboo based paper industry on the country. This step proved to be necessary for the growth of the industry. The project of this report in marketing mix and industrial relation of vamashadhara paper mills ltd., madapam of srikakulam district. The paper industry pays an important role in the progress of nation. The creation of edit nature conduct of administration, oxidation of tracks and industry, oil depend on paper, it also has an important role to play in the planned development of any economy and spread of education. The Vamashadhra paper mills ltd., was established at

mandapam on the banks of river Vamsahdhara in srikakulam district. A centrally declared backward area as am based industry in

the 1980 for manufacture of agro Kraft paper using paddy straw and gunny as the main raw materials supported by wastes paper as secondary raw material with a licensed capacity of 7500 tunes per annum, with the assistance of state level financial institution and equity participation from IDBI and ICIC. The unit went into commercial production towards ends of the January 1984-84 and went for an expansion cum balancing program and completed the same and increased as capacity to 6600 tunes per annum during the year 1985-86 and earned profits (Rs.2.09) the unit started as production with flatling media and after expansion of the plant. They have been production floating media, swmivirgin (medium) and high strength Kraft. PADDY STRAW or rice straw is the main raw material for the unit. The company has producing other materials like waste gunny degases. West paper is importing from Singapore, Netherlands, USA, Switzerland, Malaysia through the channel of vizag. Chennai percent Mumbai etc, Vijayawada, Mumbai, Cuttack, Calcutta etc., It is also purchasing packaging materials like Hessian cloth. Reel cores, wooden flags and others. Here the basic enterprise functions are personnel. Production, finance. Commercial (purchase) and marketing coordination among these different functions activities has been achieved successfully as so far.

NEED FOR THE STUDY

Marketing mix is one of the key concepts In modern marketing concept Accordant to NEILH.BORDON of the Harvard business school. The marketing mix refers to the appointment of efforts, the combination, the designing and the integration of the elements of marketing into a programme or mix which on the basis of an appraisal of the market force will best achieve. The objectives of an enterprise at a given time Marketing mix is a plant designed to analyses the marketing problems as follows. By utilizing the important forces in acting form the marketing operations of enterprises. By utilizing the important forces in acting form the marketing operations of enterprises. By adopting procedure and plies for an efficient marketing program (distribution policies. Promotional papoose etc.), marketing mix is a plan. It is continuous process not ending here. According actual meaning of marketing means the place which is having purchase percent selling of goods and services is called marketing It not limited to particular place, time etc. The above importance of marketing mix plays vital role in vamshadhra paper mills ltd. Also the demand and supply gap for paper is high and the consumption pattern of paper in India is growing continuously, paper mills need to improve their system to cater the need of customers and industry, Hence I felt that there is

a need to study the existing marketing practices at VAMSADHARA PAPER MILLS LTD

OBJECTIVES
The present study titled a study on marketing mix strategies of Vamsadhara Paper Mills has undergone to realize following objectives. To study the overview of Paper Industry To study the overview of Vamashadhara paper mills ltd. To study the marketing mix activities i.e product, price, place, and promotion practices at Vamashadhara paper mills. Suggest some measures to improve the performance of the organization.

METHODOLOGY
The study was exploratory in nature as the objectives was to shed light regarding customer preferences as well as the level of aware ness of the people on insurance company Methodology is a systematic procedure of collecting information in order to analyze and verify a phenomenon. The collection of information is done from two principle sources. They are as follows 1. 2. Primary Data Secondary Data The primary data are those, which is fresh and is generated from the view and opinion of customers. The primary data may be obtained by applying questionnaire method. The questionnaire comprises of exploratory researches of 12 questions framed in the contest. I felt questionnaire method is the best in collection of primary information. In this survey I am collected information from customers. It is the information collected directly without any references. In this study it is gathered through interviews with concerned officers and staff, either individually or collectively, sum of the information has been verified or supplemented with personal observation conducting personal interviews with the concerned officers of marketing department of Vamsadhra Paper Mills . SECONDARY DATA: The secondary data was collected from already published sources such as, pamphlets of annual reports internal sources

PRIMARY DATA:

include shipments, sales results, and advertising, prior research reports. The study is carried basing on the information and documents provided by the organization and based on the interaction with the various employees of the marketing department records, reference from text books and journal relating to marketing management. The data collection includes: a) Collection of required data from annual premium records of Vamsadhra Paper Mills . b) Reference from text books and journals relating to marketing

management Sampling and Sampling Technique The conduct the study I have taken 50 dealers as Sample size. I have selected the dealers from the dealers list of the company by using simple random sampling Technique. Data Analysis I have analyzed the data which is gathered from structured questionnaire by using simple statistical techniques like Tables and Bar Diagrams. interviews. Report Presentation The present thesis has been prepared in 5 Chatpers. First Chapter deals with Introduction to the topic, need for the study, Objectives of the study, Methodology, and Limitations. Second Chapter deals with the Industry profile and Company profile. Third Chapter deals with the Theoritical frame work of the study, Fourth deals with the data analysis and interpretation and Fifth Chapter Deals with the finding, suggestions and summary. Later the data was interpreted with the opinions gather from the Vamsadhara staff and dealers through formal

LIMITATIONS
The present study titled a study on marketing mix strategies of Vamsadhara Paper Mills having following limitations. The scope in limited to Vamsadhara Paper Mills only it may not applicable to other units. One month time is not sufficient to take in depth study. Hence, Time is main limiting factor to gather more information for this study. The company may not issue confidential information with regard to key marketing and financial activities. Hence, it may affect accuracy of the study. As the paper distributors are very much time conscious and very busy to spare a considerable time to study, they could not provide sufficient information. Being majority of company staff having low educational profile to understand the research studies there may be a chance of respondents bias.

CHAPTER -2
2.1 Industry profile 2.2 Company profile

INDUSTRIAL PROFILE
OVER VIEW OF THE PAPER INDUSTRY IN INDIA:
The paper and pulp industry has an important role to play in the India economy. The overall paper consumption in India is about 5 million tons. The increasing demand for paper puts pressure on supply of papermaking fibers, including efficient recovery of recycled paper, use of non-wood raw materials and the need to develop and expand sustainable use of wood. At the same time competition in global pulp and paper markets is intensify in India pulp and paper industry consist around 500 paper mills, mainly small and medium sized companies with production capacities ranging from less than 1,000 tpa to over 150,000 tpa, there is a growing need for modernization and introduction of energy efficient and clean technologies for enhancing competitiveness and productivity. The paper manufacturing process has several stages which is explained diagrammatically here under the entire paper manufacturing process can be broadly classified into two district operations-pulp making, is the heart of any integrated paper mill and is the most energy and resource intensive operation, an integrated paper units product quality as well as yield is largely dependent on the efficiency of its pulping operations. GLOBAL PAPER INSUSTRY Industry structure; the global industry is configured for volume driven operations with district pulp manufactures and paper makers. Europe and Canada dominate the pulping industry while north America western Europe and parts of Asia dominate paper manufacture in. The global paper consumption in FY 2008 was

approximately 825 mn tones. Writing

percent Printing segment

accounted for 32 percent of the global paper consumption while INDUSTRY were at 82 percent resulting production of 5.1 tpa in FY 2008, as per the Indian paper manufactures association, the Indian paper industry is expected to report a 5-10 percent improvement in production and sales during the coming years, this growing demand is not expected to be met by a corresponding rise in capacity due to high capital costs and environmental constraints. As the domestic paper industry has low duty protection levels, the domestic prices have been in line with international prices. This has resulted in reduced import of paper, which is now mainly confined to west paper pulp especially coated and specialty paper. Thus while international pricing does impact domestic pricing thereby impacting profitability. But the paper imports constitutes less than 10 percent of total paper percent paperboard supply. RECENT SCENARIO percent OUTLOOK: After a prolonged down cycle, the domestic paper industry to firm up in the last year. At the same, at the some time in the past 6-9 months has witnessed sharp rise in operating costs as inputs like causes tic soda and chlorine have risen about 40 per cent over the past year, while wood prices have risen about 40 per cent over the past year, while wood prices have risen approximately 30 per cent over the past 6-8 months. STUDY AND GROWITH OF PAPER INDUSTRY At the turn of current century, there were only for units in operation whose combine annual out put was 20,000 tones, attracted by high profits under the protective tariff umbrella, many new paper mills were setup at the beginning of the first plan in 1950 the production crossed the one lakes ton mark. The output of paper (excluding news print) recoded a study growth for the second plan onwards and

reached 19.4 lakes tones in the 1990. Imports at 20,000 tones, accounted for les than one percent of domestic consumption. Year News print production

Paper percent board Installed Production 3.4 7.5 11.0 20.7

196061 197071 198081 199091

company 4 9 11 30

0.4 0.4 0.3 2.7

There are now over 325 units with a total installed capacity of 33 lakes tones while production excluding newsprint is about 21 lakes tones. Capacity utilization however, came down from a high 99 percent in 19970 to 62 percent in 1990 or the installed capacity nearly 46 percent (15.17 lakes tones) is form 33 large integrated paper mills (each with a capacity of 20,000 tones and more) while the balance is accounted for by agro residue based and waste paper based small mills. SICKNESS IN SMAL PAPER UNITS Form the very beginning the small units have suffered from constraints. They did no have chemicals recovery plants. Did not they provide for disposal of effluents. They had installed second hand machinery imported form else where and they made use of unconventional raw materials. As a result in small paper units found it difficult to operate efficiency to maintain quality of paper or produce at a low cost. At the same time the large paper units had

many

technical

advantages

because

of

better

equipment

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

Large paper units and many of them fell sick. The sickness in the small scale paper sector is due to High cost of investment and low rate of realization Highly competitive market Continuous cost sectionals, but with stagnant price of paper board. Heavy interest burden towards financial instauration and banks Non-availability of materials, and increase in electricity and water charges. Non-availability of coal in the required quantity of quality. Cluster of mills in particulars regions, resulting in problems of procurement of limited raw materials in that region.

PRODUCT:
The most basic marketing mix tools PRODUCT, which stands for the firms tangible offer to the market, including the product quality, design, Features branding and packaging. According to PHILIP KOTLER defines product as follows. A product is anything that can be offered to a market for attention. Acquisition use or consumption and that might satisfy a want or need it includes physical objects, serious, persons, places, organizations and ideas Products are destined for use by ultimate consumer or households and in such form that they can be used without further commercial processing. Industrial products are defined to be sold primarily for use in producing other goods or rendering services.

CONSUMER GOODS CLASSIFICATION: Consumers buy a vest number of goods we can classify these goods on the basis of consumers shopping habits like. Convenience goods: Goods that are customer usually purchase frequently, immediately and with the minimum on efforts in comparison and buying examples include tobacco products, soaps, news paper and drugs, etc. Shopping goods: Goods that are customer in the process of selection and purchases characteristically compares on such bases as suitability, quality, price and style, example include furniture, clothing and major appliances, etc., Specialty Goods: Goods with unique characteristics and for brand identifications for which a significant group of buyers are habitually willing to make a special purchasing effort. Examples include specific brands and types of fancy, cars, stereos, photographic equipments etc. Unsought Goods: Good that the consumer does not know about or knows about but does not normally think of buying, new product, such as micro ovens, food processors, are unsought goods until the consumer is made aware of them through advertising digital digital player, LIC percent encyclopedia. INDUSTRIAL GOODS CLASSIFICATION: Industrial goods can be classified in terms of how they enter the production process and their relative coastlines like.

Material and parts: Goods that enter the manufactures product completely. They fall into two classes: raw materials and manufactured materials and parts. Raw materials: Raw materials fall into two major classes; firm products (example wheat, Lumber, crude, petroleum, iron ore etc.)firm product are supplied by many producers, who turn them over to marketing intermediaries. Who provide assembly grading, storage, transpiration and selling services. Their commodity character results in relatively little advertising and promotional activity with some exceptions. There are fewer and larger producers. Who often market them directly to industrials users. Because the users depend on these materials. Long-term supply contracts are common price and deliver reliability suppliers. Manufacturing material and parts: Manufactured material and parts ate exemplified by component material (eg: iron, cement, wires and component part (eg: small mothers, tires, casting.) component materials usually fabricated further for example big iron is made into steel, and earn in woven into cloth. Component parts enter the finished product completely with no further change in fore as when small motors. Are put into vacuum cleaners and tires are put on automobiles. Most manufactured materials and parts are sold directly to industrial users price and services are the major marketing considerations and branding and advertising tend to be less important. ate the major factors influencing the selection of

Capital items: Goods that ate enter the finished product partly, they include two groups installation and accessory equipment. Installations consist of building (eg: factories and offices) and fixed equipment (eg: generators, dell presses computers, elevators) installations ate major purchases they are usually brought directly form. The producer, with the typical sale preceded by long negotiation period. The producers use a top notch sales force, which after includes sales engineers. Advertising is use but is much less important than personal selling. Accessory equipment portable factor equipment and tools and office equipment (eg: type writes, desks,). These types of equipments do not become part of the finished product. They simply help in the production process, al use middle men because the market is geographically depressed. The buyers. Are numerous and the orders are small quality, features price and service and major consideration in vendor selection The sales force tends to be more important than advertising although the letter be use effectively. Suppliers and services: Items that do not enter the finished product at all suppliers are of two kinds operating supplies (eg: lubricants, coal, typing, paper, pencils etc.) and maintenance and repair items (eg: paint nails, brooms etc.) suppliers are the equivalent of convenience goods in the industrial field, as they are usually purchases with a minimum effort on a straight rebury basis. They are normally marketed through intermediaries because of the great number of customers, their geographical and the low unit value of these goods. Business

services include maintenance and repair services (eg: window cleaning, type rewriter repairs) and business advisory services.

PROFILE OF THE ORGANISATION: VAMSHADHARA PAPER MILLS LIMITED

VAMSHADHARA PAPER MILLS LTD a well know and pioneers in manufactures of paper (industry) in Andhra Pradesh, it is situated at mandapam (village), Srikakulam (district). The industry also producing KRAFT PAPER the mill was installed in 1983 at mandapam, srikakulam (dist), Andhra Pradesh with production capacity 19600 metric tones. Man power Year 2009-10 Managing director Executive (p percenta) GM DGM M(ASST.M) Senior drafts man Offices Fore men Work men Casuals Total 7 65 87 197 6 5 11 1 6 1 1 ------in present 1

ANNUAL TURNOVER:
The annula turnover of Vamshadhara paper mills during 2000 to 2009 Period 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Amount in crores 20,2396 20,7333 25,0524 25,2510 26,2671 56,6642 74,0039 29,9253 39,6523

ORGANISATION SPECIMEN: It implies a formalized intentional structure of rates of positions. Hence international structure means people working together must fill certain. The peoples are asked to till should be internationally designed to ensure that required activates are done and that activates fit together so that people can work. Smoothly effectively and efficiently in groups. Organization set up in VAMSHADHARA paper mills is a fictional departmentation headed by MD, who assisted by joining managing director and executive director i.e grouping activities in accordance with the functions. Here the basis enterprise functions are and personnel, production, finance, commercial (purchase)

marketing co-ordination among these different fictional activities has been achieved successfully so far. MARKETTING DEPARMENTS Sales is the major functional are in marketing in VAMSHADHARA paper mills joint managing director is directly with sales. He takes the assistance of sales officer on doing so. HIS DUTIES INCLUDED: He has to coordinate work of all departments He has to study the market conditions to make necessary changes sales officer in different geographical reigns assert in this. Controlling and supervising of various senctions in the departments. He has to increase the sales volume to the possible

AN OVER VIEW OF VAMSADHARA PAPER MILLS LIMITED EVALUATION AND GROWTH: The vamsadhara paper limited established at Mandapam on the banks of river Vamasbhara in Srikakulam district a centrally declared back ward area as a agro based industry in the year 1980 for manufacturing of kraft paper using paddy straw on Gunny as the main raw materials supported by waste paper as secondary raw material with a licensed capacity of 7,500 tones per annual with assistance of state level financial institutions bank and seed capital assistance and equity participation form IDBL and ICICI. OBJECTIVE OF VAMASADHARA PAPER MILLS LIMITED 1. To carry on the business of manufactures buyers, sellers, importers, exporters and deals in all kinds and classes of papers, cardboard and pulp. 2. To carry on the business of manufacturing purchasing selling or otherwise dealing in cartoons, fabric boxes, corrugated papers and other packing materials products and like.

BRIEF DETAILS OF THE UNIT: LOCATION CONSTITUTION :Madapam (village) SRIKAKULAM (dist) : public limited company : 2nd April-1980 : 2, 54, 37,000 : 30, 89, 72,000

DATE OF INCORPORATION ININTAL PROPOSED COST OF THE PROJECT PRESENT EXISTION COST OF THE PROJECT PROMOTERS.

DATE OF COMMENCEMENT OF BUSINESS : 28th January 1983

APIDE with Sri S.R.Raavinder and his associates as Co-promoters RAW MATERIALS: Waste paper (indigenous) West paper (imported) Straw Begasse CHEMICALS: Rosin Alum sodium soleplate Caustic soda lye Spray starch Actichen Others

SOURCE OF WATER Under grounds through bore wells. FUEL: Coal, paddy flusk, jute waste, and wood chipping POWER SOURCE EASTERN POWER DISTRIBUTERS In 1990-1991 the company having earned more profits of Rs. 78,00,000 then the lower production rate in 1989-90 even though productions increased in 1992-93 but the firm failed to get profits HIS DUTIES INCLUDED: He has to coordinate work of all departments He has to study the market conditions to make necessary changes. Sales officer in different geographical regions asserts in this. Controlling department. He has to increase the sales volume to the extent possible. and supervising of various sections in the

Managing Director is the chairman of the VAMSADHARA paper mills ltd. Under the chairman junior managing director is acted as vise chairman under junior managing director. Executive director headed four departments namely personnel; and admistration departments, technical department, financial departments and commercial department. Deputy general general security manager and headed three departments, Deputy namely general personnel departments.

manager, manager technical activities also. Under this deputy general manager, manager 4 types of activates namely pulp mill paper mills and boiler maintenance.

Under financial departments financial controlling three types of activities namely sales and purchase, stores, salaries wages and dispatches. Under commercial department commercial manager is the chief of the following officers serener commercial officer commercial officer, purchase officer. Joint managing director is the chief of the marketing department. Two different types of officers and three different type officers are controlling. Under joint managing director. Namely sales officers(finished products) sales officer (administrative officer) junior sales officer (paper Godown) Hyderabad sales office (sales percent collection) Chennai sales office (sales and collection) combater sales officer (sales and collection). PROFILE OF FINANCE DEPARTMENT: Vamsadhara paper mills was set up by the technical promoter sn S.R.Rabinder with the help of the co-promoters and with the assistance of M/S. APIDC M/S.IDBI M/S.ICIC As equity participants the term loan have been extended by M/S.APIDC M/S APSFC M/S SBI M/S ANDHRA BANK percent

PARTICIPATING FINANCIAL INSTITUATIONS APIDC APSFC Hyderabad. IDBL - Industrial credit and investments corporation of India ltd. Mumbai. SBI percent AB - Srikakulam SBI AB - State Bank of India - Andhra Bank Srikakulam district MPS Classified as category b in industrial back ward ness. The following are the incentives by the Government to any distry located I this district. Capital subsidy: 20 percent of the fixed capital seeds new assests. Power subsidy: period 5 years. The unit went into commercial production towards the end of January, 1983-84 and went for an expansion cum balancing programmer and completed the same and increased its installed capacity to 6600 tones per annum. During the year 1985-86 and earned profits (2.09 lakhs) Paper element like padday straw, waste paper, vast temy are required in making paper these raw materials are available entire Andhra Pradesh state and orissa. Received through state road transport these materials are in the rang of 40min to 120 min and slacked yards. 25 percent of the computed consumption for a Andhra Andhra Pradesh Pradesh state state financial financial development corporation, corporation limited, Hyderabad.

FAVORABLE CAUSES OF LOCATINO OF VAMSADHARA PAPER MILLS LTD. The main factory that is motivate to establish factory is madapam etc. Availability to labour at cheep rate Availability of continuous water supply The moving sources lo run the factory electricity Availability of waste paper The communication and transport facility Availability of labour and transport facility of the importance factory and it was true in the case of VAMSADHARA PAPER MILLS LTD. Regarding supply of water there was a big banta situated very nearer with the plant it is bring tank of 200 feet depth the four to five areas of plant area. This unit was established along the madras percent howrah railway track.

PROFILE OF OPERATIONS DEPARTMENT: The vamshadhara paper mills ltd manufactures KRAFT PAPER using paddy straw and waste gunny as the main raw materials. This company produces finished KRAFT PAPER. The company produce 60 toness per day. During the yeat 1994-1995 company was able to acieve a production level of 12,246 metric tones and a capacity utilization 80 percent during 1993-94. the increased production was achieved as a result of expansion scheme by way of increase in installed capacity to 13,000 tones per annum from 6,600 tones per annums which was undertake with the financial assistance from M/s IDBL to a tones of Rs.115 lakhs during 1992093 the unit started its production with floating media and after expansion of the plant; they have been product notation meia semevirgin in (medium) and high strength KRAFT. YEAR 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 UNITS MTS MTS MTS MTS MTS MTS MTS MTS MTS MTS MTS LICENSED 16,500 16,500 33,600 33,600 33,600 33,000 33,000 33,000 33,000 33,000 33,600 INSTALLED 12,000 12000 12,00 21,750 21,750 21,750 21,750 21,750 21,750 21750 21,750 ACTUAL PR 9,541 12246 13,690 16,966 17,783 17,315 17,996 18,867 17,750 17897 18,970

RAW MATERIAL IN TONNES: The raw materials are utilized during the year 2000 to 2010 the utilization new material is increased so the production also in increases. These raw materials imported from other countries. PERIOD UNITS Raw materials in

2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 TOTAL MAN POWER YEAR 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009

MTS MTS MTS MTS MTS MTS MTS MTS MTS MTS

tones 22974.971 23909.109 27478.545 27305.327 28305.327 29305.629 30897.137 31534.140 32782.270 33872.677

Workman 142 138 130 120 113 76 73 70 71 71 71

Staff 98 64 60 59 44 44 41 38 37 39 39

Casual labor 132 130 128 122 126 126 100 90 87 87 87

Total 342 332 318 311 279 279 195 195 195 197 197

RAW MATERIALS: Company uses unconventional raw materials chemicals and packaging materials for manufacturing the paper, un-conventional raw material include paddy straw, waste gunny, bagasse, waste paper etc. Paddy straw is the main raw material for the unit. It is available plenty in near village of the plant site the company has procuring other materials (like waste gunny, bagass waste paper) is importing from (though waste of) vizag, madras, Mumbai, cuttack, vijayawada etc. the company is also importing waste paper from other countries.

The mill uses chemicals along with above motioned materials. Chemicals like alum sodium sulphate, caustic soda, guragum, rosin and other chemicals. PACKING MATERIAL: It is also purchasing packing materials like Hussein cloth, red cores, wooden plugs, pp strip roles and others. Power percent Fuel Electricity Own generation Through diesel generation Coal Non-conventional fuel

ELECTRICITY: It is main source of energy for the unit the units is having 331140 substation with an installed capacity of 20000kv. The substation has a 33kv line passing through site. The maximum record demand is the post around 12,200 kv. The substation is sufficient to meet the requirement of the unit. But initially the company has to face lot of problem become of heavy power cut. To over come this problem tow die generator gets of capacity 750kv each have been installed in the plant.

These are capable of taking core of 100 percent of power cut at the existing installed capacity and around 5 lakhs was invested for some auxiliaries, such as motors capacitors, cable etc. The company uses coal in boilers at very low level. The company also needs non-conventional fuels such as rise husk, groundnuts shells and cashew nut shells, these non-conventional fuels are locally available. MACHINERY: M/s several engineering works who are one of he reputed paper mill machinery manufactures had made the technical evaluation of the machine condition. As per their findings the areas requiring immediate attention were the head base, press ports, dryers section calendaring and pope sections of the machinery, in these sections of the recording required are mainly grading of surfaces. Changing of veering and religion of rubber roller etc. which will improve performance and reduce in mechanical breakdown.

Also a through study of the units performance and available facilities made by Andhra Pradesh industrial and technical consultancy organization limited(APTICO)revealed creation deficiencies in the plant, and certain area where modernization are needed to reduce variable costs to improve the performance and validity of the plant. PROCESS:

The process for manufacturing KRAFT PAPER consists of following steps. Boiling Clarifying Mixing Rolling Drying Rewinding BOLLING-CLARIFYING-MIXING-REWINDING-DRYINGROLLING To analyzing the process it is in the following way Boiling in this process the water is boiled and the stream is reduced for ether purpose of running the mill Clarifying in this gunny bags and straw and waste paper are washed through the water and clarified in routine manner. Drums to brings the thickness of paper to particular level. Rolling after mixing the paste of the above mentioned material are rollers for purpose of preparing smooth paper

PROFILE OF HUMAN RESOURCE DEPARTMENT: Manpower may be though of as total knowledge, skills, creative abilities talents and aptitudes of an organization work force, as well as the values. Attitudes, acquired knowledge and skills represented by the talents and attitudes of the employed persons.

It is valuable assets of an organization of a factory, organization and money of physical equipment an organization performance and resulting productivity are directly proportional toe the quality and quality of its human resources the other officers of the company have been recuited with persons having relent and experience and qualifications. REMEDIAN MEASURES: Making use of the maximum quantity of raw materials locally available. The Srikakulam district is generating sufficient quantities of agro residence and three will no be any dearth of raw material even if the plant capacity is increased. MAIN POWER: Since the unit is located in a remote backward area, recruitment of trained and experienced personal was a big problem to the firm however the company able to strengthen organization structures by the following methods. TRAINEES: With a view to help the local educated unemployed, youth the units has embarked on a training programmed in which in which 145 trainees were recruited. These trains had in plant training and majority of them confirmed.

SKILLED WORKERS: The skilled worker has drawn form the other similar paper mills by the way of paper advertisement and selection. Presently there are 14 numbers of workers under this category. Actually skilled workers 14

Semi skilled STAFF: 39 staff were

51

selected

with

persons

having

sufficient,

experience in the line including fresh graduates after a trained with in the organization how ever experienced persons were taken where necessary. WEGE STRUCTURE: The wage structure of the company favorable compares with similar organization in the paper industry presently the total wage. Bill come to employees thus the average salary of employees comes. To Rs.5000 per month/ Total payments Staff wages Workmen wages Last 2004 total wages Maintenance and -1, 00, 37,094 -32, 30,408 -36, 43,068 - 1, 00, 37,094 services are usually supplied under

repair

contract, small producers often Provide maintenance services and repair services are often available form the manufactures of the original equipment.

SRI VAMSHADHARA PAPER MILLS LTD. As VAMSHADHARA PAPER MILLS products line (A product line is a group of products that are closely related they perform a similar function) are sold to the same channels or make up a particular price range consists of purely industrial goods. Our discussion on marketing tools will be confirmed to Industrial products only.

PRODUCT VARIABLES. PRODUCT MIX IN VAMSADHARA PAPER MILLS LTD: Product mix is list of all the product offered for the sale of the company. It is defined as the composite of products offered for sale by a form business unit. Dimensions Breadth of product mix Length of product mix Depth of product mix PRODUCT VPM LTD has been producing fine equality papers of different G.S.M. according to the customer requirement. The organization decides the G.S.M but the normal run is generally G.S.M the product an industrial product PRODUCT VARIENTY IN VPM The units is producing machine finished Kraft paper of 80140gms. The normal run is generally 100 gms. This is used for inner layers of corrugated paper boards. This product is a very common product and is producing by most of the mini paper mills and hence suffers from serious competition.

They are producing variety of product is generally 100 gms. This is used for inner layers of corrugated paperboards. This product is a very common product and is producing by most of the mini paper mills and hence suffers form serious competition. They are producing variety of products they are manufacturing different shades (brightness) though they have adequate technological facilities to produce all the qualities but due

to other reasons they are not producing all the varietys of paper. The present varieties are Consistency tools of product mix Adding new product line Widening its product line Widening its product line Developing product line Developing product line Developing relations PRODUCT GENERALLY CONSISTS OF FOLLOWING Varity Quality Design Features Brand name Packaging Size Service Returns

Name 1st Grade 2nd Grade 3rd Grade 4th Grade 5th Grade QUALITY IN VPM:

TYPE/QUALITY 14 BF 16 BF 13 BF 20 BF 22BF

PRICE PER TON 13,500 13,850 14,200 15,000 16,000

According to customer requirements they are necessary the quality control by the following methods. Usually they observer the quality sampling method preliminary elimination existing product lines consists of 3 types namely fruition media, semi virgin (medium) and high strength kraft difference among these are thickness and of course price quality is based on the following factors. Ph value Ash, oisture content Bursting strength Sizing Qater penetration Water absorpation Break length Tensile strength and etc. Quality may differ form the variety to another variety but quality assurance is a must by the above factor.

Brands name: VPM LTD is not having a particular brand. It is a commodity but that are having intention to have a brand name but sales are going on the name of VPM kraft paper. Brands name is a symbol the term sign or is design are combination of them intended to identified the goods ad services of

one seller a group of seller and to diffentiate thorn from those of competitors. VPM is not having a particular brand. It is a commodity but that are having intention to have a brand name but sales. Are going on the name. of VPM kraft paper. Brand name is a symbol the term sign or is a design are combination of them intended to identified the goods and services of one seller a group of seller and to differentiate thorn form those of competitors. VPM is not printing the symbol of kraft paper but it refers to others vamsadhara product or S.R.Rabinder product. Packing: VPM ltd produce kraft paper in way of feel and bundle wise. It is packed with also Kraft paper but in packing system uses with Hessian cloth. Reel cores. Wooden flugs, wrapper side wise, plastic straps, seal reel cores, gum tape or bob tapes. Sheets are picked with wrapper, plastic.straps. Secondary package includes Hessian cloth and jute wine. Completed the same and increased installed capacity to 6600 tones. Per annual during the year 1985-86 and earned profits (Rs.2.09 lakhs).

The unit again slipped back during 1986-87 and has suffered a book loss of Rs.8.23 Lakhs even though I s has an improved capacity utilization for various. Reasons in the year 198788. the situation further deteriorated and the unit incurred as cash loss 5.56 lakhs.

The major reasons attributed for this loss were server power cuts and power tipping resulting in wasting and stoppage of production and higher in put costs. Services: They are offering traded is counts to the regular customers. Warranty: If any damage in the prodict while transportation. The company provides insurance policy if the damage certificate is produced to the company (head office) then the required quality/quantity are to be replace by the company. Size: The size of the paper depends upon customer order but in general standard sixe supplied by VPM is follows. 14 BF ,16 BF,18 BF, 20 BF, 22 BF. BF->BURST FACTOR

NEW PRODUCT: VPM is producing. MG paper. Initially the company had a plan to change over to printing and writing grades. However the number of steps taken to improve further.

 Product improvement, cost reduction, product development, import substituation etc. Energy conservation measures taken Additional investments and proposals if any being implemented for reduction of consumption of energy. Impact of the ensures at land 2 above for the reduction of energy consumption and consequent impact on the cost of production of goods. Price: Price is the only element in the marketing mix that produce revenue to the their element product costs. According to Philip kotler defines price is the amount of money charged for a product or service or the sum of the values consumers exchange for the benefits of having or using the product or services. If any instances the price of industrial goods fall into patterns thar are fairly uniform through out and industry nevertheless, a market must decide whether or not to follow industry patterns, and it how much to divert from them these deciding must be made against a background of environment forces including competitor, changing costs and shifting partners of demand.

CONDITIONS AFFECTING PRICE Those conditions to which the success of pricing strategies a particularly sensitive are competitions cost and demand. Competition:

The nature of competition in industrial markets is influenced by the size of firms the types of product marketed their life cycle, and price leadership. Firm size: In the typical industrial market as few as there or four large firms often account of most of the business. They are usually well finance active in research and responsible for developing and introducing most of the technical improvements in the industry since they are often organization to market a broad line of products on a mass basis man of their costs one joint costs, while the managers seek a certain percentage of total sales volume they rare take pricing action which results in sudden changes in market share, product development, customer service represent and the chief arms of competition. Medium sized firms often intimate the actions of the larger firms although their commitment to research generally are much less and their product lines generally ate much less and their product line generally more limited they often concentrate on products too specialized in design. Needed in quantities too small to be profitably supplied by larger firms with their less flexible facilities, these business seldom-initiate price changes, they may dye in part board relation but is more likely the result of a satisfactory profit position.

PRODUCT TYPE: In many industrial markets many materials and items of equipment are standardized some product standards are established by government as in the case of many material used in the processing

of foods and drugs. Traders associations such as NEMA (national electrical manufactures association) which has established widely use standard for electric motors set other standards. Some product standards. Such as that where apply to steel and other metals are highly complex. Standards for steel for example consist of basis specifications for each type of steel plus a series of one and offs for the addition of emission of creation ingredients. Variations in the amounts of gradients used or the addition or emission of various treatment processs Competitions offer for sale substantially the same product in each classification or a product whose quality equals or exceeds a common level. This substantially eliminates product quality as a competitive element consequently added cmphasis place in service and price as bases of competition. The results is that the marketer of standardized industrial products is able to use price as a means of gaining objectives much more effectively than can to be maker of non-standard items. For this particular industry of all the sales variavles price is the major influencein factor demand of this industry of this industry is highly elastic as for a price is concerned. So units in this industry tries to eliminate price competitive amount them. Separate associatins is there for small and medium mils. Usually association proposes the basis price (called also as factory price of landing price). And units individually decides their final price competitors price in a particular area, demand for the product etc.

PRICE IN VPAM LTD. Generally price includes the following Discounts Allowances

 Payment period Credit terms Pricing methods uses Competitors Discounts: Discount is a straight relation in police on purchases during a stated period of time there are 3 types of methods. Trade discounts: When a manufacturer sells all or part of his goods to distributor. The customarily quotas a discount to the distributor which is designed to represent the outlets operating expenses and profit. It a channel of distribution containing two or more middlemen or levels of customers used the price a structure may consist of a chain of discounts subtracted successively form each new. These discounts needs not be same to all the distributors. Quantity discounts: Quantity discounts are price reductions which very according to the amount purchased by instituting a quantity discount policy the manufacture offers small order buyers a tangible incentive quantity discounts may also be said as a means of classifying customers into large quantity buyers, when the seller wishes to serve direct and small quantity the seller wishes to serve direct and small quantity the seller wished to serve direct and small quantity buyers who he prefers to serve though distributors since quantity discounts can be so designed that large users. CASH DISCOUNTS: Cash discounts are dedications the buyer makes form the face of an invoice in return for payment before it is due. Their purpose is to

encourage immediate payment and thus enable the seller to avoid the burden of existing credit. These are also certain positive benefits which occur to the seller when invoices are paid immediately. These include faster turnover of working capital. The elimination of function between the company and slow paying customers and even increased sale since customer in good standing are more likely to than those in arrears. In VPM gives to credit based discounts 5-10 percent because it is also sold by credit and some time to dealer to purchase a lot of quantity then that time provide the cash discounts. ALLOWANCES: Allowances will be given to different parties in different way in accordance to their contact.
In VAMSADHARA PAPER MILLS LTD.

Specifically allowance are a nill.

PAYMENT PERIOD: The payment periods based upon the customer agreements. Generally they offer a period up to 60 days means incase some customers the product. That is 7 days, 21 days, 30 days, 45 days, 60 days. But each turn Rs.750 cost extension paid. In below 45 days no interest only Rs.45 days interest free. If they are unable to pay with in time the bark will lower interest. In this company available to credit facility for those people who are having confidence and known persons also.

LIST PRICE ACTUAL PRICE

In VPM LTD. Actually minimum price is 11,500 per turn. Maximum cost is may higher quantity const is 14,000/- per tun. This price fixation depend on grade wise like 1st to 5 grades. COMPETITONS The VPM produce high quality Kraft paper. The product and very coming product and is produced by most of the paper molls and hence suffers from serious competition. The main competitors of VPM LTD. Sri Laxmi Tulasi paper (aswarao peta (Khammam)) Coastal paper ltd (Rajamundry) Sri Vinayaka paper ltd (Rajamundray) Most preferred G.S.M and B.F 14, 16, 18, 20, 23, 13, FS Due to sluggish demand in the paper market seasonal demand is effected in limited time. When the Govt. policy on forestation comes through we hope to supplement his activity by captive plantations on waste lands VPM manufactures of over 60 percent of the country value added and specially papers and accounts for nearly one fifty to of the country overall paper production. percent in mango seasons demand is more. Stockiest, dealers retailers, good settlement of their complaint with

PRICING MEDHODS USED: Geographical packing is the general pricing policy following V.P.M geographical each customers has to pay the transportation cost form the factory to the specific destination. All customer would day the same factory price plus

transpiration the disadvantage is that product will cost high to the customers so competitions who are nearer to that particular destination will out self. This unit in that area. At that same time are which is nearer to the factory can be well utilized by the company consideration these factors. There is no hard rule indicating the final price even though the policy in factors. There is no hard rule indicating the final price even though the policy is cost plus freight. The main consideration is competitors price.

PLACE (DISTRIBUTION)

Places concerned with getting the right product to markets place.General industrial distribution system can be shown in like this Manufacturer Industrial Distributors Manufacturers Representatives Manufatacturer Sales Branch Industrial marketing channels usually. The product is sent though dealer to the customers (single channel distribution) and to some buyers it is direct distribution i.e form manufactures to the customer. DISTRIBUTION SYSTEM: Purchase orders will be placed by dealer or directly by their buyer but supply will be to those buyer only. In case dealer placed the priced the purchase order material will he made though dialer and dealer will be paid trade discount (Commission) for the trade be performed. In other case where purchase order received form the buyer directly material will be supplied to the buyer as usual and collection will be made directly by the company. This can be illustrated as follows. 1. direct distribution 2. single channel distribution factory dealer V.P.M following the following channel distribution. Industrial Customers

Product-agent-user:

Small settle manufactures who not have their own marketing department final convenient to have agent different selling points. This arrangement is considered good fore introducing new products. Producer industrial distributor-use Theoretically place consist of the following 1. coverage 2. channels 3. locations 4. transport particularly the above characteristics are explained on details is given below whole seller distribution and executive paper. Merchant Retailer Industries Private percent public institution Converted ware house Small customer

End user Coverage: Cover all over the country and all the major cities in the country

Channels:

This firm maintain several dealer nearly 10 members. In regular dealers are also Sri Y.S.chakravarthi (Madras) Sri Songhi Murugan (Trades, Madras) Sri T.Trinadha raju (Vinayaka Traders in Vijayawada) Sri K.S. Gotham (Laxmi Ganapathi paper mill limited, Hyderabad) Sri sundaram velu percent Co (Coimbatore) In this agents direct parties 10 members sri kiret mode from indipro, Mumbai. Locations: Office at the following places bangalur, Madras, Coimbatre, Hyderabad, Vijayawads, Visakhapatnam, pandicheri percent costal Andhra, orissa culcutta etc. Transport: The company provides transport facilities including loading at factory indents are per purchase order we and submitted in cell for loading the documents sent by the transportes are. Consumer goods companies rate advertising sales promotion, personal selling and public realation selling sales promotion, advertising and public realation it that orders shown. Below. 1. duplicate copy of the invoice(excise) 2. if door deliver consignee copy of the cargo.if through bankdistination 3. waybill. 4. dispatch Chilean. 5. freight Chilean . copy is issued .

PROMOTION

Promotion is the final element in the marketing mix.After the nature of the product is decided its proceed fixed and the method of distributing decided. The manufacrure has fare effective steps in meeting the consumers in the markets. Basically promotional activities are: 1. personal selling 2. sale promotion 3. advertising 4. publicity The crucial event in the marketing process is the sale with in the context of the corporate mission, every component of the marketing strategy is intended to bring it about. But it must be brought about in way. Which assumes customer satisfaction. This places a special burden on advertising,personal selling ,and sales promotion and to a lesser extend public relations which are the principals avenues through which contact with the consumer is made. Each has a unique contribution to make both in generating. Sales and sustaining customer patronage. This actively that communicates the merits of the product and persuades the target customer to buy it is termed as promotion. Each promotional tool-advertising, personal selling, sales promotion and public relation has its own unique characteristics and cost. The rated importance of promotional goods various between consumer and industrial marketers. Consumer goods companies rate advertising and public relations in that order as shown below.

CONSUMER GOODS

INDUSTRIAL GOODS

Advertising Sales promotion Personal selling Public relation Relative importance:

personal selling sales promotion advertisement public relation

In general personal selling is more heavily used with complex, expensive and riskly goods and in markets woth fewer larger seller (industrial markets) Element of promotion advertising: While advertising is less importance that sales class in industrial markets it still plays significant role. The take of the industrial advertiser is complicated by the multiple buying influence. Industrial firms: The derived nature of demand for industrial goods and the fact that many material ports and components lose their identifying end product. These condition influence the role of advertising in the forms promotional strategy. Which intern is a bearing in the purposes which advertising will be called upon to serve. While these purpose vary with the firm and market situation server are fairly common. They are to inform to identify new customers to which recognition. To support salesman to motivate distributors and to stimulate demand.

Persona selling:

Personal selling fives right product to right consumer, persuades the buyer to buy right thins with right quantity. People have facility in the salesman as a source of product information and advice. Though it is most effective and most costly form of promotion it is the advantage of personal contact. According to American marketing association persona selling is the presentation in conversation with one or more perspective purchaser for the purpose of marketing sales. The people who do the selling go y many names. Personal selling is most tools at certain stage of the buying process. Particularly in building up buyers preference. Convictions and action. The reasons that personal selling when compared with advertising has the three distinctive qualities in VPM personal selling is 0.001 percent Personal confrontation: Personal selling involves alive, immediate and interactive relationship between 2 or more persons. Each party is able to observe each others needs and characteristics last close hand and make immediate adjustments. Cultivation: Personal relationship selling to a involves. deep Alive immediate friendship. and interactive sales relationship to bring up, ranging from a matter of act. Selling personal Effective representatives we;; normally deep their customers entrusts act heart if they want long run relationship.

Response:

Persona; selling makes the buyer feel under some obligation for having listened is the sale talk. a) sales people b) sales representatives c) account executives d) sales consultants e) sales constants f) field representatives g) district mangers h) agents i) marketing representatives. Sales promotions A longth sales characteristics According to mason and Ruth sales promotional consents of those activities that are designed to bring a company s good or services to faceable attention of consumers promotion tools coupons contests premiums. And like are higly diverse . they have three distinctive

Thus the sales promotion includes personal selling advertising and supplementary selling activity in VPM discounts. Allowance rare sales profits etc.

Communication:-

They gain attention and usually provide information that may lead the consumers to the product Incentive:They incorporate some concession. Inducement. Or contribution that gives value to the consumer Invitation:They include a distinct invitation to engages in the transaction. Now companies use sales -promotion tools to create a stronger and quicker response sales promotion effects are usually short run . however and not effective in building long-run brand preference Advertising :According to American marketing association advisements is any paid form of non personal communication of ideas. Goods. Or services by business in the advertising message intended to 20 In this unit present ads are provided through news paper only. But initially mere is no ads. Actually advertising in between cartons fibbers box meeting Publicity:The old name for marketing public relation publicity this was planning simple as activates to promote a company or products news about in media no paid by sponsor.

Public relations:Marketers tend to under use relations are use it as an after through but are often effectives as continuing remainders if the marketers and produce The essence of public relations is the paper conduct of a father relations with the various sub- groups which compose it general public this through study of the way in which the companys operation effects each of these groups and compressive programmer corresponding in a positive way to each of them The main promotion mix tools are sales promotion and personal selling advertising is very low. Expenditure on promotion is very less and it includes company s brochure. Annual reports. Souvenirs and paper advertisement.

ORGANISATION STRUCTURE

MD (Managing Director) JMD (Junior Managing Director) DM SALES Manager Finance

General Manager

Manager Engineering percent Services

DM Paper

DM Civil

DM pulp

DM Stores

Workers/Employers

CHAPTER -3
3.1 THEORETICAL FRAME WORK

THEORETICAL FRAMWORK MARKETING:

In common parlance . marketing is the study process of selling something ate a shop or marketing place . to some is has mean the of individuals commendations and their movement in the market place. To some it has meant the study of institutions and peons who mere with these products or the study of economic contribution where as to other it has meant the study of the behavior of products movements and the way of the person involved in moving with them . marketing is human activity directed at satisfying needs and wants of customers through exchanges process

Definition of marketing :
marketing is the performance of business activates the direct flow of goods and services form produce to consumer or user Association American marketing

marketing is a social and managerial process by which individuals and groups obtain what they need through creating. Offering and enchaining products.Value with other. Philp kotler

marketing is a total system of business activities designed to plan. Price promote and distribute want satisfy9ing goods and services to person and potential customers William j. Stanton

Then comes there purchasing power whether purchasing power whether the price matches their pocket or no. wither they afford are not.if they are affordable topurchase the product then comes their buying behavior whether the product available or not. The sense of marketing is a transaction or exchange. Marketing is total system of business activates designed to plan. Price. Promote . and distribute want sying products to targets to achieve organization objectives and goals. IMPORTANCE OF MARKETING Marketing is the distinguishing the unique functions of the

business has been defined as the process in a society by which the demand structure for economic goods and services is anticipated or enlarged and satisfied through the conception promotion exchange and physical distribution of such and services Marketing is ofthen desicribed as every ones business this is true becase marketing is capable of influcing the lives of every one and every day its application is most vital for all are profit making or non profit organizations. Whether they

making . marketing is the crucial deciding point at which ativities of an organization meet the approval or dispproval of customer form every walk of life. It is both philosophy ad technology. As a philpsophy it guides and direct the business thinking gin certain economic circumstances. As a it guides and direct the business

thinking gin certain economic circumstances. As a technology it is concerned with deciding what should be produced . how and when products could be most effectively distributed a mont the customer . therofer . it is true to say that marketing is a social technology

A high level of marketing activity isa prerequisite for high level on economic activity. It has been apply remarket. nothing happen until somebody sells something. . Ate urgency is for production present the as a increased marketing and not merely for increased command shigh significance of the society as

. this along shows the importance of marketing

potential force that wholeIn the past.

It was true that marketing was only concerned with getting good and service number into the handle of ultimate customer . but . at a years later in was realized that goods. Must reach customer profitable selling and ultimate for consumption in recent

of activates form conception of product idea to its

marketing has assume greater impotence. This is mainly dying to the rapidly increasing of production of a wide range of goods and service. It is an undisputed fact sustained economic growth depends to large extent on the performance of marketing that the demand for goods. And services is stimulated this stimulation leads to the multiplication of products and ultimately leads top higher production .Marketing . therefore . is at the heart of all industrial activity . it is of vital importance for al businessmen to understand the role of marketing in the economic development of a country and in rising of living of the people

Marketing provides wide employment opportunities. It is estimated at in encounters like the USA. Of the total number of persons employed . between 1/4th and 1/3rd of them are engaged in the field of marketing . it is marketing which has converted yesterdays luxuries into todays necessaries it mobilizes latent

economic energy and thus is the creator of small business. Marketing process brings new varieties of useful and quality goods to customer. This raise the standard f living of the people . it is the developer of standard for product an services as well as conduct. Integrity reliability. Etc. peter besides. Economic integration is made possible through proper distribution of products. In the words. Of F .. DRUCKER without marketing there can no democratic economic development

MARKETING MIX The 4 pS PRODUCT . PRICE PROMOTION PLACE thus make up marketing strategy called marketing purchasing power whether mix. Then are comes there pocket or to affordable the process matches their

not. Whether they afford are not. If they the products is available or not . Marketing achieves is total

purchase the product then comes their buying behavior whether

system of business activates to

plan.

Price.

Promote and distribute want saying products to target markets to orgazational objectives ad goals.

People are organization with wants needs has to first accept the product . then comes ther purchasing power whether the price matches their pocket or not whether they afford are not If they are affordable to purchases the products then comes

their buying behavior whether the products is available or not All these 3 a s can be satisfied only through awareness among

public which can be only be done through marketing . the sense of marketing is transaction or exchange Marketing is total system of business activates designed to plan

price promote and distribute want-saying product to largest markets to achieve organizationally objecteives and goals. IMPORTANCE OF MARKETING MIX To day, the market place isnt what is used to be it is changing radically as a result of major societal forces such as technological

advances globalization and deregulation these major forces have created challenges for the marketers The customer increasingly expects higher quality and services and some customization. They perceive fewer real product differences and show less brand loyalty . they can obtain extensive product information form the internet and other permits them prices sensitivity in their for value Brand manufactures are facing intense competition from domestic and foreign brands which is resulting in rising promotion costs and shrinking profit margins there are being furgher buffeted by powerful retailer who command limited shelf space and are putting out their own store brand in competition in national brands. Companies are doing a lot of soul searching. And many highly respected companies are changing in a number of ways Marketers also are re-thinking their philosophies. Concepts. And tools so that they can sail safety through the rough but premising water heave. Therefore in search competitive area successful companies will be those who can keep their marketing changing with the changes in their market place and market space. They need to design and appropriate marketing mix in order to retain in the market place. So the marketing mix is very important in competitive business environment. sources . which to stop more intelligently. They are showing greater

PRODUCT
A product is the most important tool in the marketing mix without a product there is no question of marketing program is one

the product a product is anything that can be offered to a market for attention. Aquistition. Use or consumption might satisfy a need or want. The product policy or strategy is the corner of a marketing mix without a product there price Definition A product is a bundle of physical service and symbolic particulars expected to yield satisfaction or benefits the a buyers Philp kotler product should be considered as a bundle of utilities consisting of various product features an accompanying services Wore caldrons. product is a complex of attributes including packing . color . of is nothing to promote. Nothing to

prose. Manufactures. Prestige and manufactures and retailers services which the buyer may accept as offering satisfaction wants or needs willian J. stantion.

PRICE
Price is an important element in the marketing mix arrival as aright selling price inessential in sounding marketing mix. Economists defined price as the exchange of value of product or

services always expressed money . to the consumer the price an afferent between seller and buyer concerning what each is to terms receive price is the device for translation into quantitivate

R.S PASIES the received valued of the product to the consumer at a point of time we can define the prices as the amount charged for product or services DEFINITIONS price is the only element in the marketing mix that crates sales revenue to the other element of costs Philp kotler prices is simply convenient way to express the value that to a willaiam E.. schocell.

transaction pace upon the product that is being exchanged

PLACE
Channel of distribution:

After production . the next problem faced by a producers of selling and distribution because production is made I satisfy the needs of the consumer so it must reach to the consumer for who it made. Thus a way through which goods flow form the produce to the consumer is called channel for distribution. Definition : every product distribution : philpkotler any sequence of institutions form the producer to the consumer including or may number of middle men is called of distributor. Me earthy. a channel of distribution of a product is the root taken by the william j. stantion. seeks to link to gather the set of marketing

intermediary is called the marketing channel also trade channel of

titles to the ultimate customer or industrial users.

PROMOTION
Promotion is the process of marketing communication to inform persuade remain and influence consumers of users in favor of your

product or services promotion has three specific purpose

it is not

enough to communicate idea promoting persuades and convenes the buyer and influences his behaviors to taken a desired action essentially promotion in persuasive communication to inform potential consumer of the existence of produce persuade and convinces then the those products have satisfying capabilities. Meson percent rath promotion is an exercise information . persuasion and influence -wlliam j. stantor these marketing acuities other than effectiveness such as display personal selling . addicting and exhibitions

and publicity that stimulate consumer purchasing and dialer shows demonstration and various non- recurrent selling efforts not in the ordinary routine

Promotional tools were divided into mainly three types: 1. Advertisement:

it was defined as any paid form of non- personal presentations of ideas. Goods and sponsor Objectives :to create awareness about the product brand company etc. to introduce new benefits of features 2. personal selling: personal selling takes several forms as calls a field reprehensive from creating 3. assistance by a sales elerk and a gold invitation one company product president to executive it . can be used for services by one identified

awareness. Arousing interest etc.

sales promotions: it can be defined as communicating with an audience variety of non-personal non- media vehicles such as promotions activates supplement co-

through aa

gives capons. The sales promotion mix 4. publicity:

ordinate make more effective the efforts of the components of

Non personal simulation of demand about it in published medium obtioaining

for a product

service or business unit by planting commercially significant news favorable presentations of it upon radi. Television of stage the its not paid by the sponsor.

CHAPTER 4
4.1 DATA ANALYSIS PERCENT INTERPRETATION

DATA ANALYSIS AND INTERPRETATION 1. table showing dealers experience in paper industry Table No. 4.1 No of years 2 years 3 years 4 years .4 years Total RESPONDENTS 6 5 9 30 50 Graph No. 4.1 Percentage 12 10 18 60 100

30 25 20 15 10 5 0 2 years 3 years 4 years .4 years

INFERENCE: From table no. 4.1 and graph no. 4.1 it is observed that 60 percent dealers are in this type of paper industry for more than four years, 18 percent three to four years. 10 percent dealers are in paper industry for two to three years. 12 percent dealers are in paper industry for two years and below. Hence, it is interpreted that majority of respondents having more than four years experience with the company.

2. table showing dealers experience of VAMSHADHARA paper industry Table No. 4.2 Company Costal paper ltd Sri Vinayaka paper ltd Sri Lakshmi paper ltd Total No. of Respondents 35 12 3 50 Graph No. 4.2 Percentage 70 24 6 100

35 30 25 20 15 10 5 0 Costal paper ltd Sri vinayaka paper ltd Srivinayaka paper ltd

INFERENCE: From the Table No. 4.2 and Graph No. 4.2 it is observed that 70 percentage of respondents responded that coastal paper limited is main competitor, 24 percent Sri Vinayaka Paper Limtied and six percent Lakshmi paper limited. Hence, it is interpreted that coastal paper is the main competitor of VAMASHADHARA PAPER MILL. LTD

3. factors influencing the dealers influencing the following factors Table No. 4.3 Factors Quality Profit Credit Demand Total No. of respondents 10 8 18 14 50 Graph No. 4.3 Percentage 20 16 36 28 100

18 16 14 12 10 8 6 4 2 0 Quality Profit Credit Demand

INFERENCES: INFERENCE: From the Table No. 4.3 and Graph No. 4.3 it is observed that 20 percent dealers are opined that the quality influenced the dealer

to join with Vamsadhra, 16 percent dealers profit margin, 36 percent dealers credit and 28 percent dealers are influenced by the demand. Hence, it is interpreted that majority of the dealer associated with Vamsadhra Paper Mills Pvt. Limited on credit ground. .

4. Comparison of VAMASHADHARA Price to other brands Table No. 4.4 Brand No. of Percentage 12 28 32 28 100 respondents Costal paper ltd 6 Sri Vinayaka paper ltd 14 Sri Lakshmi paper ltd 16 Vamashdhra paper ltd 14 Total 50 Graph No. 4.4

16 14 12 10 8 6 4 2 0 Costal paper ltd Srinayaka paper ltd Srivinayaka paper ltd Vamashdhra paper ltd

INFERENCE:

From the Table No. 4.4 and Graph No. 4.4 it is observed that majority of the respondents i.e. 32 percent are responded that there is a price comparison between Sri Lakshmi Paper limited and Vamsadhra, 28 between Sri Vinayaka and Vamsadhara and 12 percent between Coastal and Vamsadhra. and Vamsadhara in terms of market price. 5) promotion tools offered by company Table No. 4.5 Promotional Tools Advertising Sales promotion Discounts Others Total No. of respondents 5 35 4 6 50 Graph no. 4.5 Percentage 10 70 8 12 100 Hence, it is interpreted that there is a large comparision between Sri Lakshmi paper mills

35 30 25 20 15 10 5 0 Advertising Sales promotion Discounts Others

INFERENCE: From the Table No. 4.5 and Graph No. 4.5 it is observed that majority of the respondents i.e. 70 percent respondents responded that sales promotional tool are primitive, 12 percent technical service, 10 percent discount and 8 percent advertising. Hence, it

is interpreted that the sales promotions like discounts and trade allowances are primitive promotional tools Vamsadhara Paper Mills Pvt. Limited.

6) Rank the brands based on the sales considering . effectiveness of promotional activities. Table No. 4.6 BRAND Costal paper ltd Sri Vinayaka paper ltd Sri Lakshmi paper ltd Vamshadhara paper ltd Total No. of respondents 20 15 10 5 50 Graph No. 4.6
20 18 16 14 12 10 8 6 4 2 0 Costal paper ltd Srivinayaka paper ltd sri Lakshmi Vamshadhara paper ltd

the

Percentage 40 30 20 10 100

INFERENCE: From the Table No. 4.6 and Graph No. 4.6 it is observed that majority of the respondents i.e. 40 percent opined that the coastal paper mills limiteds promotional activities shows major influence on their sales followed by 15 percent Vinayaka Paper Mills, 10 percent Lakshmi Paper Mills and finally with five percent Vamsadhra Paper

Mills. Hence, it is inferred that Vamsadhra Paper Mills promotional acitivities are not primitive as compared to other major competitors to boost the sales. 7). Is there any strategies of advertisements help the sales of Vamshadhara paper Mills? Table No. 4.7 ADVERTISEMENTS YES NO Total No. of respondents 32 18 50 Graph No. 4.7 Percentage 64 36 100

35 30 25 20 15 10 5 0 YES NO

INFERENCE: From the Table No. 4.7 and Graph No. 4.7 it is observed that majority of the respondents i.e. 64 percent opined that the Advertisements will influence the sales of Vamsadhra Paper Mills and followed by 36 percent opined that will not. Hence, it is interpreted that the Advertising Strategies may influence positively the sales of Vamsadhra Paper Mills.

8). Does any promotional trade scheme influence Vamshadhara products Table No. 4.8 Promotional Trade Scheme YES NO Total No. of respondents 36 14 50 Graph No. 4.8 Percentage 72 28 100

4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 Y S E N O

INFERENCE: From the Table No. 4.8 and Graph No. 4.8 it is observed that majority of the respondents i.e. 72 percent opined that the promotional trade scheme may influence Vamsadhra Paper Mills Products and 28 percent may not. Hence, it is interpreted that there may be a significant influence of Promotional Trade schemes on Paper sales.

9). Positive Opinion regarding distribution system of company Table no. 4.9 Distribution Processes Distribution Order processing Total No. of respondents 36 14 50 Graph No. 4.9
40 35 30 25 20 15 10 5 0 Distribution Order processing Replacement

Percentage 72 28 100

INFERENCE: From the Table No. 4.9 and Graph No. 4.9 it is observed that majority of the respondents i.e. 72 percent has positive opinion on Distribution and 28 percent on order processing. Hence it is interpreted that the distribution system of Vamsadhra Paper Mills are much satisfactory mechanism. as compared to their Order processing

10). Comparison of quality of Vamashadhara to other brands Table No. 4.10 Quality Exectllent Very good Good Poor Total No. of respondents 11 25 10 4 50 Graph No. 4.10 Percentage 22 50 20 08 100

25 20 15 10 5 0

Exectllent

Very good

Good

Poor

INFERENCE: From the Table No. 4.10 and Graph No. 4.10 it is observed that majority of the respondents i.e. 50 percent responded that the quality of Vamsadhra Paper Mills product is Very good compared to their main competitors followed by 22 percent excellent, 20 percent good and eight percent poor. Hence, it is interpreted that majority of the respondents opined that the quality of Vamsadharas product is very good as compared to their nearest competitors.

SUMMARY
The vamashadhara paper mills limited is an agro based industry was established at MADAPAM I the district SRIKAKULAM with the aid of government institutions viz. IDBL percent ICIC .

After having faced so many problems initially this unit has been enjoying profits form the last couple of yeas. This organization is strengthened by well knowledge technical and administrative personnel. Well supported by staff.

The present project work report titled A study on Markeing Mix Strategies of Vamsadhara Paper Mill, is divided in to 5 chapter.

The first chapter deals with introduction about the chit fund sector in India, need for study, objectives of study, methodology of study and limitations of study.

In second chapter industry profile and company profile has been discussed. In this chapter paper industry and its present

scenario the regulations of the government and in contrary paper enterprises practices are discussed. Later in the part of company profile genesis and growth of Vamsadhra Paper Mills , functional aspects and its achievements have clearly been indicated.

FINDINGS
After Careful analysis of the study I found following facts with regard to paper marketing of Vamsadhra paper mills pvt. Limited. Majority of dealers are in this type of paper industry for more than four years so that there may be a long association with the paper mills with whome they are associating. Majority of respondents responded that coastal paper limited is main competitor of Vamsadhara Paper Mills Pvt. Limited. Majority of dealers have been associating with Vamsadhara Paper Mills Pvt. Limited because of their credit terms. Majority of dealers have an opinion that there is price variation between the competitors of Vamsadhara Paper Mills Pvt. Limited. Much respondents opine that sales promotional tool are

primitive in paper market. Vamsadhra Paper Mills promotional acitivities are not so good as compared to other major competitors to boost the sales. Majority of dealer opined that the Advertisements will

influence the sales of Vamsadhra Paper Mills. Majority number of dealers opined that the promotional trade schemes may influence Vamsadhra Paper Mills Vamsadhara Paper Mills Pvt. Limiteds distribution system is good as compared to their order processing system.

SUGGESTIONS
In the due course of the study on Marketing mix strategies of Vamsadhara Paper Mills Pvt. Limited after analyzing the facts I would like to suggest as following to improve the performance of the company with regard to marketing strategies. The company has to immediately think on its CRM activities as the customers of the company are much concentrated by its competitors Company has to go for competitors analysis as the

competitors are strengthened with greater speed. Vamsadhara Paper Mills Pvt. Limited must look over its pricing and revise them carefully as there are much variation in the paper market between the competitors. Vamsadhara Paper Mills Pvt. Limited has to revise its trade and sales promotional tools. Vamsadhara Paper Mills Pvt. Limited has to improve its order processing system. Finally the company has to improve its supply chain system for their overall performance

The third chapter deals with conceptual frame work of the study. In this chapter the clear description of the Marketing Mix Strategies has discussed as the primary part. Later to understand the concept of Marketing Mix Strategies towards paper industry and market the referred literature has been presented.

Fourth chapter deals data analysis and interpretation. In this chapter the analysis and interpretation has been given as per the order of questions given in the questionnaire. We have used simple statistical tools like tabulations and bar diagrams to analyse the data and analysed data was interpreted with the facts gathered from the interviews of Vamsadhara Paper Mill and dealers.

The fifth chapter deals with summary, findings, suggestions.

QUESTIONNAIRE

1. How long have you been dealing with the VAMSHADHARA paper ltd as a dealer? a) 1 to 2 years b) 2 to 3 years c) 3 to 4 years d) More than 4 years 2. Who are the main competitors of the VAMSHADHARA paper ltd? a) Coastal b) Sri Vinayaka c) Sri Laxmi tulsi d) Shiv Sagar 3. What influenced you to deal with VAMSHADHARA paper ltd? a) Quality b) Profit margin c) Credit d) Demand 4. How do you rate the quality of VAMSHADHARA paper ltd. comparatively with other Brands? a) Excellent b) Very good c) Good d) Poor 5. Does a) Yes b) No paper ltd? a) In time b) Moderate time 6. How do you rate the distribution system of VAMSHADHARA VAMSHADHARA paper ltd gives promotional/trade

discounts to their products?

c) Late time 7. How to make the order processing? a) Regular customers b) Requirement c) Others 8. How do you distribute your products? a) Distribution channels b) Direct selling c) Order processing 9. How would rate the Price of VAMSHADHARA paper ltd in comparing other brands? a) Very high b) High c) Moderate d) Low

10. Considering all aspects given above which is the highest preferred in the Market? a) Vamshadhara b) Coastal c) Sri vinayaka d) Sri laxmi tulasi

BIBLOGRAPHY
Marketing -PHILIP KOTLER Research methodology C.R.KOTHARI management