SAMAY MBA Porject Report Prince Dudhatra

8/6/2019 SAMAY MBA Porject Report Prince Dudhatra

1/74

INDEX

SR.NO.

PARTICULARS PageNo.

1. Introduction 22. History 33. Project at Glance 44. Present Scenario 6

SAMAY QUARTZ1


2/74

INTRODUCTION

Time is the greater preserver & destroyer of all being & things it is the does of all happens good or bad time limitsits own creations or sets them free to expand.

While everything sleeps, time keeps vigil none cantransgress time, which freely moves within all being, withnothing to obstruct it what ever was in the past will come inthe future & is now are the creations of time, seeing these donot loose your declamatory awareness.

With Samay, the times will change it is exactly thispoint that the Samay group Morbi is out to prove to theworld. It is at a very crucial point in the history of Indiansclock manufacturing industry that Samay Electronics haschosen to strike it big & they have started in the rightearnest.

The brilliant star of samay Electronics Pvt. Ltd. Morbi

has risen of the chorological horizon on Dissents 1 st October98, and Samay has commenced its exuberant massiveproduction & marketing programmed of quartz clocks & timepieces.

SAMAY QUARTZ2


3/74

HISTORY

Samay was started on a very sweet note on 1oct, 98with particular planning & clock work precision inimplementation of the factory infrastructure plant andmachinery & setting up of a marketing network. Samayquartz was launched into the market offer it was inauguratedby the Chief Minister of Gujarat Shri Keshubhai Patel.

Right from the beginning skills combined with top classprofessional completely & down. To earth practical ability totake on any situation in its stride. The management SEPL

commenced production of 20,000 quartz clocks & 10,000time pieces per day today the target for the year 2004 is30,000 quartz clocks per day and in 2005 it will reach up to40,000.

This inauguration function was attended by over 4000people which included local people, workers & large numberof people from different sectors of society from Morbi,Rajkot, & many other parts from Saurashtra & Gujarat

regions.

Also present were newly appointed around todistributors, stockiest from all parts of India North, South,East & west regions. Besides the honorable chief ministerdistinguished guest includes shri Vajubhai Vala, Dr.Vallabhbhai Kathiria, Mr. Kantibhai Amrutia, JayantibhaiKawathia and many others.

The promoters of samay & Ajanta are all members of one family, but destiny decided that its member should gofurther ahead two different paths, it is thus that from ownfamily another clock venture has originated and so, Samay is

just another family clock venture.

SAMAY QUARTZ3


4/74

PROJECT AT GLANCE

Name of the unit : Samay Electronics Pvt. Ltd.

Location : Samay electronics Pvt. Ltd.N.R.Industrial Estate, MorbiP.O.Box No. 210- MorbiGujarat ( India ).

RegisteredOffice : Ajanta Complex,

Guest House RoadMorbi.

Form of unit : Private Firm.

Size of the unit : Large Scale.

Managing Director : Mr. Dilip Manubhai Patel

Directors : Mr. Premal Bhanjibhai Patel

Mr. Jitendra Manubhai Patel

Mr. Pravinbhai Ukabhai Patel

Mr. Raghubhai B. Patel.

Pioneers Of unit : Mr. Manubhai Patel

Mr. Raghavjibhai Patel

Legal Advisors : Kishor & Co., Rajkot.

Bankers : SBS Morbi.

Email : [email protected] SAMAY QUARTZ4
mailto:[email protected]:[email protected]


5/74


6/74

PRESENT SCENARIO

The director of Samay is with impressive track recordand also over 25 years of experience in the same business.Samay is having more production capacity with latesttechnology & superior design products.

The management of Samay commenced production of 20,000 quartz clocks and 10,000 time pieces per day, todaythe target of the year 2005 will reach the production of 40,000 and it is not going to be difficult for this dedicatedteam of brothers who are professionals to the core with a

keen foresight in management.A strong marketing network in India & abroad is already

being established the products of the company are beingexported to more than 45 countries apart from the presentproducts wall clocks & time pieces, telephones, wrist watchesand calculators, production of home appliances will becommenced in near future. A challenge that has become afight for quality and that is why the latest state of the art

machinery is being imported each piece that will come out of our plant will be a statement in quality: says Ramesh Patel(Chairman) the management of the company is voted withthe Board Of Directors & qualified personnel having expertisein commercial technical & administrative functions.

SAMAY QUARTZ6


7/74

INDEX

SR.NO.

PARTICULARS PageNo.

1. Introduction 82. Marketing Management In Samay 93. Marketing Organization Of Samay 104. Market Share Analysis 11

SAMAY QUARTZ7


8/74

INTRODUCTION

Todays era is an industrial era and many organizations

are flourished. Today many companies are coming withnew product, new technology, new methods and newstrategies at that time every company want to sell their

product in any way. In this period marketing is verynecessary.

Marketing occupies and important position in the

organization of business unit. Traditional view of themarketing assets that the customers will accept whatever product the seller presents to him. In this way the mainconcern of the producer is to produce without consideringthe choice or the behavior of the customers. But this pointof view of marketing has now changed. The modernconcept may be viewed from the customers point of view.

Marketing deals with identifying and meeting human andsocial needs. One of the shortest definitions of marketing ismeeting needs profitably. Producer does not producer whatever he likes but whatever consumer wants.

Marketing is a comprehensive term and it includes allresources and a set of activities necessary to direct andfacilitate the flow of goods and services from producer toconsumer in the process of distribution.

Marketing is an organizational function and a set of process for creating communicating, and delivering value tocustomers and for managing customer relationship in waysthat benefit the organization and its stake holders.

- American Marketing Association.

SAMAY QUARTZ8


9/74

MARKETING MANAGEMENT IN SAMAY

In this global economy, marketing management

occupies a significant place whether it is new firm or it isestablished unit. In this competitive world every concernmust give there attention to marketing function. They havespecial department for marketing activities. To fulfill overallorganization objectives, an efficient and effectiveorganization of marketing department is prime condition.

As far as Samay is concerned it is new firm. Their mainobjective is to establish in the market. So there marketingactivities revive around this objective. It has well trainedstaff in marketing department. The brand manager,distributor manager, advertising manger and promotionmanager and sales manager with sales supervisor andsalesman. It has efficient marketing research anddevelopment department.

The physical distribution manager is responsible for theexecution of orders, stocking of inventories, handling of excise duty problems administration of distribution channeland allocation of supplies to various sales depose. Theadvertisement manager is responsible for the help of promotion manager. The sales manager supervisessalesmen.

SAMAY QUARTZ9


10/74

MARKETING ORGANIZATION OF SAMAY Marketing Mix refers to the amounts and kinds of

marketing variable, the firm is using at a particular time-Marketing Mix is a plan designed to analyze the marketingproblems. It denotes combinations of various elements,which in their totality constitute a firms Marketing System these elements, are product, place, promotion and price. Themarketing mix consists of everything the firm can do toinfluence the demand for its product. The many possibilitiescan be collected in to four groups of variables. The four ps of marketing mix consists of following points:-

1. Product Mix:-It refers to classes of product in

different product lines.

2. Price Mix:-It includes policies regarding pricing,

discount, concession etc.

3. Place Mix:-

It refers to selection and organizationof channel of distribution, location and layout of stoles etc.

4. Promotion Mix:-It includes methods of promotion sales

through advertising, sales promotion, personnel selling etcmeans to communicate with the customers.

Thus, marketing mix is very vital decision to maintain

the market corner or to increase goodwill of the unit. Theabove mentioned for variable are mixed to satisfy customersneeds and wants there should be time to time changes andevaluation of variables according to the needs of customersan efficient and effective marketing mix can reach the unit attop of the market.

I have studied the marketing mix of Samay which isunique as its place.

SAMAY QUARTZ10


11/74


12/74


13/74

INTRODUCTION TO MARKETING MIX

Marketing Mix refers to the amounts and kinds of marketing variable, the firm is using at a particular time-marketing mix is a plan designed to analyze the marketingproblems. It denotes combinations of various elements,which is their totality constitute a firms Marketing System These elements are product, place, promotion and price. Themarketing mix consists of everything the firm can do toinfluence the demand for its product. The many possibilitiescan be collected in to four groups of variables. The four Ps of marketing mix consists of following points:-

1. Product Mix:-It refers to classes of product in different

product lines

2. Price Mix:-It includes policies regarding pricing, discount,

and concession etc.

3. Place Mix:-It refers to selection and organization of

channel of distribution, location, and layout of stoles etc.

4. Promotion Mix:-It includes methods of promotion sales through

advertising, sales promotion, personnel selling etc means tocommunicates with the customers.

SAMAY QUARTZ13


14/74

CHAPTER1

PRODUCTMIX

SAMAY QUARTZ14


15/74


16/74

INTRODUCTION

In general senses, we may think product as a physical

item but according to Philip Kotler: A product is bundle of physical services and symbolic particulars expected to yieldsatisfactions or benefits to the buyer.

From the above stated definition, we can say thatproduct means not only physical appearances but also a setof services or benefits provided to customers. In widerconcept product includes physical goods, services and ideas.

All Managerial activities revolve around product. It isthe basic thing to be thought. Many units misunderstand theconcept of product and give only importance to physicalgoods rather than its service. It doesnt means that theyshould ignore physical appearance but benefits of goodsshould be carried because customers have direct relationwith its benefits

The main product of Samay is wall clock and timepiece.They are available in different models, colors, sizes, andshapes. The price of the product is very reasonable.

SAMAY QUARTZ16


17/74

PRODUCT MIX&

PRODUCT LINE DECISION

Product Mix is the list of products offered for sale by acompany for example, if a firm manufacturing or deals withdifferent verities of soap, toothpaste, toothbrush etc. thegroup of all these products is called product mix. The productmix of Samay is as follows:-

Product Mix Width1. Wall Clock:-

- Simple Clock- Musical Clock

- Wooden Pendulum- Sweep Second- Wooden Office

2. Time Piece:-- Wooden- Plastic

Product line is a group of different product closelyrelated to each others all the brands of the same product isproduct line. The products perform similar function aremarketed to some channel and are sold to the samecustomer. Product mix includes product line.

SAMAY QUARTZ17


18/74

Product Mix refers to following components:

1. Product Mix Length

It refers total no of items in the product line.Samay has 7 product lines. So product mix length of Samayis 7

2. Product Mix Width

It refers how many different products in thecompany. In Samay there are two product mix width wallclock and timepiece.

3. Product Mix DepthIt refers to how many variants are offered of

each product in the line. By counting the number of variantwitching each line average depth of Samay product mix is7/2 = 3.5

4. Consistency of Product MixIt refers the close relationship of various

product lines either to their end use or to productionrequirements or to distribution channels or to other variablesSamays product wall clock and time pieces consistent incase of production requirements and function they performfor buyers.

SAMAY QUARTZ18


19/74

PRODUCT VARIETY

Product Varity includes all types of product, which acompany produces. They may be for the same customers orfor different customers. In other words, the differentproducts may satisfy similar needs or different needs.

We can find different verities of clock and timepiece aswell as telephone, wrist watch. It has 75 models of wall clockand 10 models of timepieces. It has models for all class of society. In wall clock, it has wooden, plastic, sweep etc.

SAMAY QUARTZ19


20/74

PRODUCT QUALITY

As I have stated that customers has direct relation with

products benefits or functions. In other words, customersees the quality of product rather than its physicalappearance. Quality refers to that part of the physical objectof the intangible service for which the ultimate customer ispaying money.

Samay gives first preferences to quality because itwants to establish its image in the market. Samay is gettinggoodwill rapidly only because of its products quality.Moreover, Samay is maintaining its quality with lower priceso that more part of market can be captured. It has qualitymaintenance department with computerized system. Thedepartment is not concerned only with the quality of productbut also the quality of its advertising, services, deliver, aftersell service etc.

Thus, products quality plays, an important role in sucha market where competition is very tuff.

SAMAY QUARTZ20


21/74

PRODUCT DESIGNE

Design is the outlook of any product. It is the physical

appearance of a product. Design attracts the customers.Designing a product is very toughest task now a days,computers are used to design a product. From customerspoint of view design of product should be attractive. Easy toopen, install, learn , how to use, repair, and dispose off.

As of design department attends exhibitions andseminars whenever they are held. The department of designing held meeting and group discussion with topmanagement at r, Samay is newly established company; ithas to provide new design to customers. Special team isengaged in designing the models of clock. They work hardand make 20 to 24 models per year. Now a days companyahs 75 models of clocks and 10 models of timepiece, whichare extraordinary in feature, which cannot give any profit, isdisposed or improved. The research & developmentdepartment also helps in making the design of models.Samay spends 15% of gross Profit for designing the product.The chief regular intervals and takes opinion of every personin designing the product.

SAMAY QUARTZ21


22/74

PRODUCT FEATURE

Feature refers to inherent function of product which

makes different and unique from others. Some companiesbecome success in capturing market only because of itsextraordinary features of their product. Producers featurescan attract customers.

Samay quartz is available in different features. Eachproduct is different from each other because of their feature.The main extraordinary features of Samay are the colcorssweep second model and the physical look makes change infeature after surviving in market. Moreover, it has toconsider the cost element in changing the feature. So, itmaintains balance between cost and feature.

At present musical, wooden, simple, plastic, fancy,cuckoo etc are available with new colors and design.Different type of musical tune is installed according to thedemand. Cuckoo clock is very nice in look and in listening thetune of cuckoo.

SAMAY QUARTZ22


23/74

BRAND NAME

Brand name refers to that which a product is identified

brand name may be a name, a sign, a design, a term or acombination of them. The purpose of branding a product is todifferentiate the product from competitors. A brand namewhen registered is called the trademark.

To select, a good brand name is matter of commonsense. That means, brand name should be selected fromcustomers point of view. Many aspects are carefullyconsidered in branding the product with brand and havespecial image for a particular product. So, while selecting abrand name many aspects should be considered.

As far as Samay is considered I think it is a very perfectbrand name. Chairman shri Rameshbhai Patel suggested it.He has selected this name because it is clock manufacturingcompany and in most of languages time is translated as

Samay, moreover it is easy to spell red and understand.Now a days Samay are getting popularity because of itsbrand name. From viewpoint of distributors they have beensuccessfully in attracting customers with the brand name of Samay.

SAMAY QUARTZ23


24/74

PACKING & LABELING

Packing may be defined as a group of activities like

designing and producing the container or wrappers for aproduct. It is the combination of the designers creative skillsand the product and marketing and sales knowledge of marketing manager.

Packing is often remarked as Silent Salesman becauseof its advertisement appeal, identifying power and intrinsicvalue. The main purpose of packing is to protect its contentin transit, in storage and in use. Moreover, to reduce thewastage in some case like moisture, fungus, inset andexposure to sunlight. In recent years packing has become apotential marketing tool. Consumer is willing to pay a littlemore for the convenience appearance, dependability andprestige fro better packing.

The product of Samay is wall clock, timepiece,telephone, wrist watch and they are delicate piece of items.The primary packaging is the glass. The covers protect themovements, the needles and case from damage and dust.The secondly packing in the plastic bags or sponge bagsprotects the whole clock from accidental breakage. Then theclocks are packed in corrugated boxes and they are packedin cartoons, which are sent to different depos, and toKandala port for disposal. Company spends 3% of grossprofit for packing to reduce the wastage.

After packing the important part is the labeling. Thepackage labeling consist of printed information that describethe product appearing on or with the package.

The secondary package of Samay the corrugated boxes.Following information is given on the box.

1. Brand Name2. Clock Size

3. Clock PriceSAMAY QUARTZ24


25/74

4. Model No5. Total Weight6. Manufacturing Date

The method of labeling is useful to manufactures,dealers and the consumers because all the informationregard to the product is available on the box itself. It helps inmaintain stocks, differentiate different models, referring theprices etc.

SAMAY QUARTZ25


26/74

PRODUCT SIZE

The term Size means to dimension of the measure of a thing. In other words, it refers to the magnitude of theproduct. The importance of the size differs from the product.The products which are sold on the basis of weight have littleimportance of size and vice versa the product in which sizeplays an important role. Size has psychological effect onconsumer, because it can be seen while quality is intangiblething.

In Samay we can find a type of clock in different size,

size of clock depends on its design. Usually, office clock orinstitutational clocks are made large so as to read easily,while house clock are small and delicate.

However, company keeps in mind the demand of customers. The size of clock changes from kitchen, bedroom,living room, and office etc.

SAMAY QUARTZ26


27/74

SERVICE

Services are extra benefits that are given after sale of the product. In other words, a service is any act orperformance that one party can offer to another thatintangible and does not result in the ownership of anything.They are provided to capture the market, while some otherproduct need after sales service.

The impotence of after sale service is for consumer andproducer. From producers point of view, the higher theperiod of after sale services, higher will be the sale. From

consumers point of view, after sale service will increase thedurability of the product.

In Samay, after sale services is provided during theguarantee period, the guarantee period is of one year, duringone year, if any damage is occurred e.g. glass is broken ormovement is not working properly etc the company willreplace it without any cost. Company has no salesman forafter sale service, so distributors have to send the damaged

piece in the company. If any damage is occurred after theguarantee period then company will take nominal charges.

SAMAY QUARTZ27


28/74

WARRANTIES

Warranties means authority or justification that thething sold is fit for the use and producer accept reasonabilityfor repairs over a period of time. Product warranties are animportant promotional tool. In case of quality sensitivemarket consumer always except a longer warranty periodand prefer that product which has a longer warranty period.

The warranty period of Samay is one year. Within oneyear, company replace the products damaged parts. Thispolicy can help the company in getting consumers loyalty,

retailers and distributors loyalty, retailers and brand image.

Thus, warranty is helpful in establishing good image fora newly established concern.

SAMAY QUARTZ28


29/74

RETURNS

Returns are total benefits available to the company bothtangible and intangible. Returns may be on the total capitalinvented, on the total sale or any other factor. Whatever thefactor, returns are always beneficial to firm. So all theactivities of business are carried out for returns.

Whenever company adopts any factor of production, itaim is to get maximum returns e.g. production is a return orlabors, profit is a return on capital. Return may be in term of brand loyalty, customers satisfaction etc.

Samay gets return on all its activities. E.g. it hasachieved the production of 57 lakhs clocks, which is 15 lakhsmore that previous year. Moreover, it is getting brand nameand customers satisfaction also. As far as profit isconcerned, at present, its aim is not profit, but capturingmarket share and customer satisfactions.

SAMAY QUARTZ29


30/74

CHAPTER2

PRICE MIX

SAMAY QUARTZ30


31/74


32/74

Introduction

Price is a value of goods. From customers point of viewit is revenue- pricing decision, which is considered verycritical decision because it decides the selling volume, profitand image of the firm. While deciding price all factors areconsidered that affects producers as well as consumers. Thefactor may be economical, social, potential and other factor.Some marketing factors also influence the price. They areproduct situation in market, competitors, price, distributionfeedback etc.

Thus a major part of success of business depends on itsprice. How consciously, price of a product is decided is veryimportant. Price mix is the third part of marketing mix. Itdetermines company market share and profitability.

SAMAY QUARTZ32


33/74

PRICING OBJECTIVES

Objectives of pricing differ from firm to firm. Pricingobjectives depends on firms policy. They are influenced bymany factors but the important factor is market situation.That means what are the prices of competitors, productsimage in the market etc.

Samay has following pricing objectives:1. Market penetration2. Product Quality Leadership3. To Cover The Cost

1. Market PenetrationMarket penetration means to keep low prices of product

than the competitors so that market can be captured. Moreover, clock market is very price sensitive. So price should below to cover the market. Second thing is that Samay clocksare for all classes of society. So prices are decided keeping inmind all classes.

Low price can be applied because Samay tries to keepthe cost low as possible as they can. Low price will increasesale volume, so automatically cost goes down. Thus, thispolicy of Samay is really admirable.

2. Product Quality LeadershipAs I have stated that Samay is quite quality conscious

company. Low prices cannot changes the quality of clocks.So, its second aim is to be quality leader in the market.

3. To cover the costApart from quality, low price Samay does not

undetermined the cost element. So the prices are decided sothat the cost can be covered.

In this way, Samay has three main pricing objectives.

SAMAY QUARTZ33


34/74

PRICING METHOD

After deciding pricing objectives, the next function is toset up price. This is a very important and difficult taskbecause many factor affect when deciding a price. Two mainfactors are helpful in deciding price.

Samay has adopted cost plus pricing method. Thismethod includes various costs like material cost, labour cost,overheads expenses, sales tax etc. and 8 to 10 % of marginof profit. This percentage may change year to year.

SAMAY QUARTZ34


35/74

PRICE LIST

Company using distribution channel has to prepareprice list. It has to circulate it to the dealers, retailers andconsumers. Though price is printed on the box, the price listshows policy and inner frame work of a firm. To prepare aprice list is not easy task. The hard working and brain of many people work together. Many factors are considered inthis regard.

Samays top management keeps meetings with theexperts and prepares price list. At the end of financial year it

is made necessary changes are made at every year.Sometime price differs from price list; it is due to change inprice of raw material. Increase in sale tax percentage etc.this price list is circulated to distributors and from them toretailers. The price list of Smany, I have given here:

SAMAY QUARTZ35


36/74

DISCOUNT

Discount is an amount deducted from the price of product and through the profit of all parties can bemaintained discount is given to attract the customers forearly payment. To increase off seasons buying and toincrease sales volume. Top management uses this tool veryeffectively. Discount may be in term of cash, quantityfunction or seasonal. These discounts are directly orindirectly beneficial to all parties concerned in buying andselling.

Samay does not give discount regularly to itsdistributors. But at the end of financial year, as a surprisegift it is given if the distributors have achieved targeted sale.This surprise gift many be in term of cash or a tangible gift.So, this policy of Samay motivates the distributors andultimately increases the sales volume.

SAMAY QUARTZ36


37/74

ALLOWANCE

Allowances are another reduction from prices. They aregiven to dealers to promote the sales. It is an efficientpromotional tool in other words; it is a return to distributorsfor favoring the product of a firm.

Samay does not give any allowances to its dealersbecause company itself carries out all promotional activities.Sometime dealers are given extra allowances for great effortof increasing sales.

SAMAY QUARTZ37


38/74

PAYMENT PERIOD

Payment period is a period of payment for dealers. Forcompany it is very critical period to meet day to dayexpenses. It is time within that the dealers of the companyhave to make payment. Payment period decides thedependability of the company. If it is short, than companyeasily meets it expanses and capital turnover will be highbecause it does not have to depend on other party. The largepayment period will increases dependability and capitalturnover ration. Also while giving a payment period todealers companys financial situation and credit must be

examined.

Samay gives 40 to 45 days to its dealers. It has notdirect contract with ultimate consumer. The period decidedconsidering retailers about. However it considers onlydistributors.

SAMAY QUARTZ38


39/74

CREDIT TERMS

Credit terms are such rules and regulations that are

mutually decided by producers and distributors or customersit is a form of agreement credit terms are some benefitsgiven to the distributors by producers.

Samays credit term is straight forward they areformatted by top management at the end of financial year.Company gives 40 to 45 days credit period and facilities inpayment method to their distributors. Some discounts andprofit margin are also described in credit terms. For exportmarket, after receiving credit Letters Company sends goodswithin 2 months. Thus, credit terms of samay are simple andfavorable to both parties.

In this way, price mix of company plays an importantrole in the efficient and effective management of resources of the company. Price mix is only the factors that occurs incomefor company, while other factors occur only expenses a goodprice mix may reach the concern at the top of market.

SAMAY QUARTZ39


40/74

CHAPTER 3

PLACE MIX

SAMAY QUARTZ40


41/74

CONTENTS

SR.NO. PARTICULARS

1. Introduction2. Distribution channel3. Coverage4. Location5. Physical distribution

SAMAY QUARTZ41


42/74

INTRODUCTION

Place is the second marketing tool and is important forbusiness. It is a stand where all business activity is done. Tosatisfy consumers need in todays economy the producer andconsumers are separated by vast distance, so it is necessaryto fill this gap. To supply the product to targeted customerscompany must take help of distribution channel. So placeshould be selected considering distribution channel decision,physical distribution its cost etc.

Place mix is also called distribution mix. It refers to the

selection of a mix of different types of distribution channelfor transmitting the goals from producer to consumers.Selection of distribution channel is very critical decision. Itdepends on a product and companys policy towardsdistributors. in place mix physical distribution also plays avital role because it is such an element through whichproduct reaches to ultimate customers. Location decision isalso considered in place mix. Location decides the otherdecision of place mix like distribution channel physical

distribution coverage etc.

In this way, place mix is important and essentialelement of marketing mix.

SAMAY QUARTZ42


43/74

DISTRIBUTION CHANNEL

In general sense distribution channel means a waythrough which good flow the producers to customer.

According to Richard Buskrik:- Distribution channelsare the system of economic institutions though which aproducer of goods delivers them into the hands of theirusers.

Thus the main purpose of channel of distribution is tosupply the goods to ultimate customers. Distribution channel

includes producers, wholesaler, retailer and consumer isconsidered as an important element of marketing mix.

The distribution channel of Samay is so simple. Thecompany has selected his channel in such a way so thatdistributors can earn enough profit and company can expectgood salesmanship from them.

In distribution following aspects are considered:

1. Type of channel of distribution2. Distribution channel chart3. Factors determining the channel4. channel management decision5. Distribution cost

1. Types of channel of distributionWhen the question of transmitting the goods to

consumers comes across the mind of manufactures he hasto think about primary two questions:

1.Direct selling2.Indirect selling

SAMAY QUARTZ43


44/74

If he wants direct selling than there is no futurequestion, if he wants indirect selling then he has to thinkabout the channel of distribution. There are three types of channel of distribution for indirect selling. They are as under:

1. Manufacturer whole seller- consumers2. Manufacturer whole seller- consumer-retailer-consumer3. Manufacturer- retailer- consumers

Samay is not interested in direct selling. So, far indirectselling is concerned Samay has selected first two type of channel of distribution.

Samay has appropriate whole seller in each region of country. They can also direct sell their clock to ultimateconsumers and through retailers they can reach to ultimatecustomers. Company can easily matins those distributionbecause it has good relation with them.

2. Distribution ChartDistribution chart is divided in two groups. First chart

for national market and second, chart for internationalmarket.

3. Factors determining thechannel:

There are so many factors that determines he channelof distribution while selecting channel they are considered.

Sanmay considers the following factor:

Type of product:-

Samays product is wall clock and it is consumergoods. So it has taken help of wholesaler and retailers.

Size of market:-Samys market is too wide not only in India but

also in abroad.

SAMAY QUARTZ44


45/74

Co

st of channel:-Company considers cost because distribution cost

increase the total cost. For that company ignores directselling because it is very expansive. In that case, channel of distribution is very economical.

4. Channel Management Decision:-Management of channel is very important because it

directly affects the selling of a company. In Samay topmanagement does channel management. The top mgt.considers following aspects:

Selection of channel members:-Samay selects wholesaler and retailers clarifying their

records of business. Moreover co-operatively, financialcapacity and salesmanship are also examined.

Motivating channel members:-Motivating is necessary to continue sales growth of the

product Samay follows this philosophy, so it providesdiscount, allowances and bonus to their dealer at regularinterval. They are provided enough margin of profit. Sometime, supervised gift are given if they reach at targeted sale.Conference is held at regular interval to inspire them.

5. Distribution cost:-

Distribution cost plays vital role in total costbecause it includes profit of many people. So every concernshould minimize it while selecting a channel.

Samay spend 20% of gross profit in distribution channel. Itmay change according to the situation.

SAMAY QUARTZ45


46/74

COVERAGE

The term coverage includes the area of market coveredby a firm. Some company has small coverage, because itwants to establish its image in small market and to createmonopoly of its product. Some company has large coverageof market generally they are large size of companies.

Samay has coverage in whole India. In internationalmarket it covers 44 countries like UAE, USA, Jordan, UK,Egypt, South Africa, Kenya, Hungary, Ethiopia, Russia,Sudan, Nigeria, Spain, Austria, Singapore, Israel, Uganda,

Malaysia, Indonesia, etc.

In India Company has depos in following states:

1. Maharashtra 92. Gujarat 173. Rajasthan 64. Madhya Pradesh 45. Bihar 4

6. Uttar Pradesh 107. Andhra Pradesh 88. West Bengal 9

TOTAL 57

SAMAY QUARTZ46


47/74


48/74

PHYSICAL DISTRIBUTION

Physical distribution is the actual movement of goodsfrom producer after there production and before theirconsumption. This functions includes many activities liketransportation, storage, and inventory control. These all arekey activities performed by producer, middlemen andconsumers. In physical distribution, following aspects areconsidered.

Order ProcessingInventory Mgt.

TransportWarehousing

1. Order Processing:-Physical distribution begins with order processing. Two

factors affect ordering processing. Record time andconsistency of delivery time. After receiving order, nextprocess can be done.

In Samay when order is received sales officer checks it.He checks the credit of dealer and stock availability. Then, hegives information to production department for furtherprocessing.

2. Inventory ManagementInventory management believed the most critical

decision in marketing mix. Inventory includes raw material,work in progress and final product. In physical distribution,maintenance and supply of final product is managed.

In Samay there is a computerized inventorymanagement because company has mass production of clockand wide spread dealers. It has to keep records of everydealer and has to supply goods regularly to every dealer.Company wants to create good image, so good inventorycontrol can be very helpful to company.

SAMAY QUARTZ48


49/74

3. TransportTransport is very basic infrastructure facility. It affects

the pricing of product, time of delivery, conditions of deliveryetc. in physical distribution; transport is believed very

important process, because it actually carries goods fromproducer to dealers. There are four ways of transport. Theyare road, air, underground pipelines, and water. Firm selectsany of four, which is less expensive and more convenient.

Samay uses two way of transport road and water fornational market, it uses road transport facility because it ischeap, faster and safe. For international market watertransport is used it is slow but safe mean of transport. Itsends its goods at Kandala port for exporting. For domesticmarket it uses trucks and for local market it uses tractors of hand carries. Apart from all these it has to consider costminimization factor.

4. WarehousingWarehousing means storing of goods. It means to keep

good until its demand does not create. Warehousing is veryimportant function because production to consumption cyclerarely matches. Storing is necessary because as soon asproduction is done, the demand does not create.

The warehousing function of Samay is very powerfuland efficient. The company has total six warehouses one iscentralized warehouse and five are individual. Thedistribution of Samay has also there on warehouse on rentalbases.

Thus, the place of distribution mix is very importantfactor in marketing mix because the ultimate aim of concernis to reach its product to ultimate customer and onlydistribution channel can help it. So, its management is asimportant as any other factor.

SAMAY QUARTZ49


50/74

CHAPTER4

PROMOTION MIX

SAMAY QUARTZ50


51/74

SAMAY QUARTZ51


52/74

CONTENTS

SR.NO. PARTICULARS

1. Introduction2. Sales Promotion3. Advertising4. Sales Force5. Public Relation6. Direct Marketing

SAMAY QUARTZ52


53/74

INTRODUCTION

The word promotion means to push forward. Inmarketing term promotion means a group of such activitiesthat increase the sales volume. It is communicatinginformation between producer and seller.

According to Mason & Rath, Promotion consists of those activities that are designed to bring a companys goodsand services to the favorable attention of customers.

In this competitive age, it is believed a very effective

tool for attracting customer for a product for promotionvarious tools like personal selling, advertising, salespromotion information about product to the potentialcustomer through this tools.

In this way, this 4 ps of marketing is very efficient andeffective p

SAMAY QUARTZ53


54/74

SALES PROMOTION

Sales promotion is very common tool of promotion. It

means those activities that increase sales volume. Its mainpurpose is to stimulate consumers and dealers effectively;sales promotion techniques are indirect and non personal.

According to William J. Stalton Sales promotion is anexercise in information, persuasion and influence. In short,sales promotion covers all those activities that increaseultimate sale in competitive area; it plays a powerful rolebecause only effective promotion tools can create demandand ultimately the sale volume. It is compulsory now days tostand in competition.

Samay uses many ways and techniques of promotingsales. It has different activities for different class of distributors following are the promotional activities carriedout by Samay:

1. Sales Promotion for customers:Seasonal discountOff-season discountFestival discountMarriage discountGift Articles

2. Sales Promotion for retailers and dealers:Distributors of Samay are also resorted for

helping in sales promotion they are rewarded inmonetary terms. The promotional activities fordealers are as follows:

Buying allowances or quantity discountAdvertising allowances and display allowancesTrade discount and other special discountSales Scheme and sales contents.

SAMAY QUARTZ54


55/74

ADVERTISING

Advertising is another powerful tool of promotion. No

business can survive without advertisement like salespromotion it is non-personal and indirect method of promotion. In competitive age, problems is not weatheradvertise or not but problems in how to advertise.Advertising physiologically affects the customers andstimulates their wants and ultimately wants result indemand. Advertising is a paid form of non-personalpresentation or promotional of ideas. Goods or services by anidentified person.

In words of wood advertising is erasing to know, toremember to do thus, advertising is in short spreading of information.

1. Advertising Media:An advertising medium is any object or device

that carries the advertising message. There are so manymediums available in the market of advertising. TheIndia is used which is very powerful and less expensive.The various mediums are as follows:

Print Media:It includes newspaper, magazine etc.

Broadcasting Media:It includes radio, T.V. internet etc.

Other Media:

It includes internal pamphlets, displays,holiday holdings, wall printing, fair, etc.

2. Advertising Budget:

SAMAY QUARTZ55


56/74

Advertising budget is the advance planning of howmuch funds will be allocated in men, agencies, media andother ancillary. While determine the budget, many factorslike type of advertising, type of media, competitors

advertising plan, season, business cycle etc. should be keptin mind. The budget should not be unjustified to any factor.

In Samay, 105 of total sale is invested inadvertising. Top management every year decides thispercentage. Budget is prepared and necessary changesare made. A particular amount is fixed for advertisementand this amount is divided into media, agency and otherancillary.

SAMAY QUARTZ56


57/74


58/74

PUBLIC RELATION

Public relation is believed indirect marketing tool thatmeans smooth public relation can create a good image in themarket. Here public relation means not only relation withcustomers, suppliers, shareholders, dealers but relation withemployee legislation, community leaders, should bemaintained the public relation department perform thefunction like press relations. Product publicity corporatecommunication counseling etc. it can be helpful in launchinga new developing the firms reputation.

Samay has special public relation department. It isknown as publicity & public relation department. It performsmany function as I have state it maintains smooth relationbetween management and employees management andsociety.

In this way, public relations department assist thecompany in building the goodwill.

SAMAY QUARTZ58


59/74

DIRECT MARKETING

Direct marketing is an interactive system of marketing,

which uses one or more advertising media like direct mail,catalog, telemarketing electronic shopping etc. it has beengrowing at more rates because it is very useful than storemarketing it is used. By any organization it has advantage of selectivity personalization, continuity, better timing highleadership and privacy.

Samay has many depose in India and in abroad also, soit does not believe in direct marketing. It feels that, it iswaste of time and money. However in local area there aredirect promotional activities.

Thus, promotion mix includes advertising, salespromotional. Public relations, sales force and directmarketing ahs some benefits and some drawbacks. However,they all are used in marketing a proper use of promotionaltools can lead the company on the steps of success.

SAMAY QUARTZ59


60/74

CONCLUSIONOF

MARKETING MIX

At the end of marketing mix I would like to say that 4 p of marketing are very effective and covers the wholemarketing functions. It can be useful to producer to affectthe mentality of buyers. And buyers can also be aware of every product in the market. 4 p s can be matched with 4 c that means product is for customers needs and wants pricerepresents the cost price is for convenience and promotion isa communication.

The mix of 4 p s can only fulfill the marketing plans agood mix is helpful in obtaining top position each has its ownfunctions to perform and marketing mix is uncompletedwithout any of them thus, marketing mix is a very useful andimportant tool to stand in competition.

SAMAY QUARTZ60


61/74

THE FIRM FROM MY POINT OF VIEW

When I joined BBA I had dream to visit the bigcompany. My great pleasure that I have taken training atSamay, which is one of the most reputed firms of India.During my training I have observed many goodcharacteristics of unit.

The firm surprising thing for me in this training isthat, in Samay everything is uniform like dresslunch bags etc.The most surprising thing is thathere the same uniform id for the employee as well

as M.D.Secondly, the concern has maintained the traditionon India in case of hospitality. In India guests areconsidered as honorable person as God. I foundthe same philosophy in this unit. Each & everyvisitor is welcomed and given good treatment.The main feature of the members of the companyis, love for their native place. The aim of themembers is not limited up to their interest but they

want to develop Morbi.Here 95% of the workers are girls & they aremostly from rural areas nearby Morbi. Samaycontributes a lot for their development andupliftment.Cleanliness is the main attraction of this unit. Each& every person including M.D. take off shoesoutside while entering in the office.At the time of starting and ending the work for aday, first prayer is done by each & every person.The motive of the organization is to providemaximum customers satisfaction. Today they gotthat position due to good quality of product atreasonable prices.

Here, I felt that people work together just like membersof family & not like a business institutions.

SAMAY QUARTZ61


62/74

SWOT ANALYSIS

After gaining an entry in the customer home, smart

marketers aim for a space in the customers heart too.

To reach at the consumers heart Samay is doing SWOT analysis so that they can add value to thecustomers.

Feedback is the breakfast of champions.

SWOT Analysis means the analysis of:-

1. S = Strength2. W= Weakness3. O = Opportunity4. T = Threat

SWOT Analysis

T (Threat) :- Chances of DuplicationS (Strength) :- Quality, Experience, Strong Marketing.

Infrastructure in India & abroadO (opportunity):- Electronic items like CDs, Digital Diaries,

Calculators, Telephones etc.

Strength:-

I am No. 1 - In TechnologyI am superior - In QualityI am beautiful - In Color Shape

SAMAY QUARTZ

SAMAY QUARTZ62


63/74

Quality:-

Quality is key to success, translating it into a reality,

company has concentrated on quality, simultaneouslykeeping a hawk eye on cost factor and the result is beautifulmodels of quartz clock fine blended with quality & economy.

SEPL is an enormous plant situated on 40 acres of landon Morbi Rajkot Highway Equipped with world famoushighly sophisticated machines in all department includingmoulding assembling, testing & packaging.

As research & development play a vital role into qualityenhancement, R&D at SEPL is equipped with the state of the are instruments & most modern testing devices, whichhelp not only meeting the exact quality but also meet thechanging requirement of customer, by producing new & innovative products all the time.

Weakness:-At present the company is offer less no of models of

wall clocks and time pieces as compare to Ajanta. Thecompany has to face stiff competition with Ajanta & otherclock mfg. Companies.

Opportunity:- Small opportunity is often the beginning of great

enterprises.

There are so many opportunities, which the companycan capture in near future. It envisages starting productionof following electronics team in near future:

TelephonesWrist WatchesCalculatorsCDsDigital Diary

SAMAY QUARTZ63


64/74

Other Electronic Items.

Dont sit down & wait for opportunities to come. Get upand make them!

Threats:-In todays competitive area there is always risk. More

risk, more glory is the call of the day.

Some threats are there for Samay. There is a chance of duplication of the products. Stiff competition can also be amajor threat. But Samay is having broad horizons & vision.

So that anticipate the future well & can know thethreats which can become hurdle in future as the Samaypeople are having 50 years experience of clock market withAjanta group.

Samay can say that :-

WE ARE NOT AFRAID OF COMPETITION,LET COMPETITION BE AFRAID OF US.

SAMAY QUARTZ64


65/74

SUGGESTIONS

PERFECTION IS THE RESULT OF VALUED SUGGESTIONS

In the world of God every individual is striving forperfection. No one is perfect. But constant endeavor forexcellence leads towards perfection. Samay is a mark of quality & excellent marketing.

However, to become a world leader one should notremain unaware of self-weakens. The world is changingrapidly especially in the area of electronics.

The possible suggestions for Samay from me as areunder:

Advertising:-People are not seeing advertising innewspapers regularly. So please concentrateon advertising in newspapers.

Price & Varity Of Products:-Samays product price is somewhat high & some modals are similar to Ajanta. It is truethat Samay is of superior quality but pricedifference may affect negatively.

Strategy:-Company should adopt attractive distributors

promotion strategy.

SAMAY QUARTZ65


66/74

CONCLUSION

I had a great pleasure in visiting Samay; it is relay aprogressive company. On seeing its production, it istremendous development for any new company; from allpoints of view Samay is perfect in its work.

Its employees are around 2000 workers and from themmost of are women. So, from social point of view, itincreases women esteems by giving them earnings.

The brand name Samay is now becoming household it

is very easy to remember and its product quality cannotforget the name Samay. It exports its product in 44countries, so it is helpful to nation in collecting foreignexchange.

Moreover, clock is production process does not use andchemical so it has not pollution. The machinery used in thefactory is very technically advanced so burden of laborerscan be reduce.

The most important element of Samay is, it hasachieved 7 awards in its financial year and has broken theworld record of clock production. It is really a greatachievement for a new established company.

All employees and management works together withoutany conflict and with full responsibility. And I give my bestwishes to Smany to archive more and more success and tobecome world famous.

SAMAY QUARTZ66


67/74

BIBILIOGRAPHY

In preparing this report I have used following books,which are written by great authors:

Marketing Management - Philip KotlerMarketing Management - J.C. Gandhi & R.K.

Agarwal

SAMAY QUARTZ67


68/74

SAMAY QUARTZ68


69/74

SAMAY QUARTZ69


70/74

SAMAY QUARTZ70


71/74

SAMAY QUARTZ71


72/74

SAMAY QUARTZ72


73/74

SAMAY QUARTZ73


74/74

Documents

SAMAY MBA Porject Report Prince Dudhatra