Chapter 1 Introduction to industry Objective
The purpose of report is to explain the practical learning gained during the period of 8 weeks at Sarveshwari Village Industries (Nafed Cold Storage) while doing summer internship.
India is second largest producers of fruits and vegetables in the world but its share in the world market both in fresh and processed form is less than one percent. Moreover due to inadequacy of infrastructure and processing facilities a large percentage of horticultural produce gets perished before it reaches the consumer. Fruits, grains vegetables and flowers being much more remunerative than the cereal crops, have registered a constant increase in their production in the last few decades. It is estimated that on account of inadequate post harvest infrastructure substantial percentage gets wasted. Several institutions have reported that depending on various type of crops seasons of production and markets the factors like harvesting , post harvest handling storage transportation etc. cause major losses. As per general estimates the total turnover in the food market is approximately Rs. 250,000 crore of which value added food products comprises Rs. 80,000 crore. Since liberalizations in August 1991 and till December 1998 proposals for projects of over Rs. 72,000 crore have been proposed in various segments of the food and agro processing industry. According to a study by the National Council for Applied Economic Research (NCAER), the Indian food market in 1995 was Rs. 248,000 crore. According to A CII-Mc Kinsey report on processed foods industry the food market at 1995 prices is estimated at Rs. 225,000 crore. According to the study, the frozen vegetables
market has the potential to touch Rs. 350 crore in value terms by 2005. But this would be possible only if adequate cold storage facilities are available in different parts of the country. Maintenance of cold chain being essential in this sector, logistics play a very important role. The total cold storage capacity is over 100 million tonnes per annum, resulting in an estimated wastage of Rs. 23,000 crore annually. The food processing industry in India is regarded as a sunrise industry. Companies, big and small are gearing up to grab a slice of the processed food market. According to the National Council for Applied Economic Research (NCAER) the number of households buying basic food items is likely double to 33.1 million in the next eight years compared to 18.1 million on subsistence diets and 2.5 million premium foods consumers. Creation of storage is the only remedy that could reduce perishability and hence value addition. With adequate storage and modern processing facilities India could emerge as a leading exporter of horticultural produce. The agrarian base of India offers a great potential for processing of fruits and vegetables. Several states and the Central Government have introduced incentive schemes to promote the industry as it is considered to be one that can play a major role in upgrading the standard of life of framers.
Prospects for Cold Storage
The preservation of perishable food stuffs is a matter of vital importance in this country, especially when there is a problem of food shortage and the loss of food is abnormally high due to the lack of proper storage facilities at many producing and consuming centers. It has been observed that certain important nutritive foods like vegetables, fruits, eggs, etc. are available in abundance in the production season and their prices drop to unremunerative levels, thus causing a serious discouragement to increase production. Due to the lack of facilities for proper preservation the commodity is scarce in the off season and the prices shoot up
considerably. The provision of cold storage facilities as has been experienced would 1. Prevent wastage of food stuffs 2. Ensure remunerative prices to the producer which would in itself provide the incentive for increased production 3. Ensure steady supplies over a longer period of time 4. Stabilize prices It is therefore, desirable to set up a chain of cold storage and frozen food storage especially in the major producing and consuming centers, if feasible. There are many kinds of vegetables and fruits and other food stuffs which can be stored in cold stores for periods ranging from two weeks to over eight months. As per the report of NAFED shows that the total capacity available now in Maharashtra is about 200,000 M.T. which is meager, as compared to the capacities available in states like Uttar Pradesh, Bihar, West Bengal, Punjab etc. It is, therefore clear that a good scope exists for establishing additional cold storage facilities in Maharashtra.
1.2 General Information on Storage of Various Commodities
The refrigerated storage which includes the cold storage and frozen storage is one of the best known methods of preservation of food stuffs to retain the food value and flavor. Although, refrigeration is an expensive process, the cold storage unites of properly selected capacities can be economically viable. The economic concept of the cold storage is that the storage cost must be less than the difference in price of the commodity stored, between flush and lean season. In case of fruits and vegetables, the post cold storage period is an important consideration for deciding whether the cold storage could be located at the producing or the consuming items like potatoes, apples, Raisins, Tamarind and some other Dry fruits and spices have a better post cold storage life and therefore,
storage for those commodities can be set up both at the producing and the consuming centers.
Cold Storage in Navi Mumbai
After the market s shifted to Navi Mumbai the need for cold storage capacity rose substantially and number of cold storage units have been established in the APM Yard as well as TTC area developed by MIDC. Some of the major units include MAFCO, Himachal and UP Cold storage, PRABHU HIRA cold storage, polar cold storage which are located in the APM Yard having a capacity of more than 2001, M. T. The units located on TTC area include Savala Food and cold storage which is one of the largest multi commodity cold store in the country with the capacity of 16,000 M.T. the other major units in this area include Crescent Cold Storage, Mehta Cold Storage, Shanu Cold Storage, Mayur Cold Storage etc. It has been observed that a number of units have expanded their capacities after a few years of operation the general trend shows that the requirement of cold store capacity has steadily been going up and the need exits for some more units. It has been observed that practically all the cold storage units have occupancy in the range of 90 to 100 % for about 8 months in the year. In the remaining period the remaining period the occupancy is in the range 50 to 70 %.
Market Yard at Turbhe
The APM yard in Turbhe was developed by CIDCO with the view of shifting the wholesale food markets from Mumbai and involved development of infrastructure for handling, storage and marketing of various commodities such as fruits and vegetables, spices, Dry fruits, Cereals etc. after the markets were shifted to the APM Yard in Navi Mumbai the requirement of cold storage capacity has been going up steadily in this area. Other Possible Activities Connected With the Cold Storage
Usually, some other activities are also possible along with a cold storage unit. These include 1. Pre cooling 2. Processing grading and storage of fruits, vegetables etc. 3. Milk processing and storage 4. Processing and freezing of fruits and vegetables 5. Controlled atmosphere stores etc. However, these facilities need additional space, higher investments and involve day to day production like activities.
1.3 Incentives and Financial Policy
The government of India, ministry of agriculture has approved the capital investment subsidy scheme for construction, expansion, modernizations of cold storages and storages of horticulture produce. The national horticulture board announces the implementation of this scheme. The feature of the scheme is as under: For wider dispersal, projects up to 6000 M. T. capacity would be preferred. The cost of 5000 M.T. capacity now cold storage and expansion of existing capacity should not exceed Rs 2.10 crore @ Rs. 4000 per tonne, for modernization @ Rs. 1000 per tonne. 25% promoter’s contribution 50% term loan by commercial Co-operative banks at PLR-1% through NABARD refinance. 25% back ended capital investment subsidy National Horticulture Board shall be routed through NABARD/NCDC for opening Borrower rise subsidy Reserve fund
account by lending commercial/Co-operative banks. The subsidy is restricted up to Rs. 50 Lacs. Wherever term loan are not raised from institutional sources and the promoters fund projects entirely through internal resources generation, such proposals be submitted to NHB directly for availing subsidy after completion of the project. Emphasis shall be laid on the following Reducing PHM losses with multi chamber and multi product facilities Modern design/technology and energy saving equipment / devices to be adopted to avoid obsolescence of machinery, etc. Applications to be submitted to commercial /co-operative banks and NCDC (As the case may be) on their applications format and National Horticulture Board may be informed accordingly.
The scheme include , cooperatives Companies, Corporations, Partnership and Proprietary firms, Agriculture Product Marketing Companies, Committee, Boards, Agro industries Corporations, Grower’s Associations and NGOs. Note: The scheme offered by NABARD is based on construction rates of Rs. 4000 per M.T. which are valid only for large sized bulk cold stores as generally constructed in North India. In case of multipurpose, multi chamber units especially located in Mumbai region the construction costs are higher due to higher land and other material and labour costs and better technical designs.
Cold Storage Data of Various Fruits and Vegetables
Storage Temperature (Degree C)
Cold storage Life (week) 32-36
Normal Period Storage March to of
October & December Cauliflower 0-1.5 8-10 to January February to April August Cabbage 0-1.5 10-12 & to
October February to May August & to
October April to May & September
to October February to May March April August to & to
September February to April April July to &
November Apples Eggs 0-15 1-5
to February October to march May, June to November, December May to June
Cold Storage Data on few products
Temperature (Degree. C)
Relative Humidity (%)
Normal period of storage 3 months
FRUITS/DRY FRUITS Peanuts /walnuts Almonds (Shelled) Currants 1 80 15-20 5-9 66-75 6-9 months 4/6 months 2 months Apricot 0-4.5 55-65 12 months Dates (sucrose or hard type) Dates soft -2 – 0 0 70-75 6 months 6 months Butter -10 80 6 months Figs 0-4.5 50-60 12 months
Ref: ASHRAE DATA Book/other literature.
List of Cold Storages Navi Mumbai
Name Address Capacity in Cu Mtr/M.T. Polar Cold Storage Pvt Ltd Igloo Cold Storage Pvt Ltd Venus Cold Storage Navi Mumbai400 703 Navi Mumbai400 703 Navi Mumbai Dry Spices Jainex Navi
Dry pulses, Spices
Milk Products Etc
Foods Ltd Vishal Factory Cold
Mumbai 400 05
Navi Mumbai 400 05 –
Storage Pvt Ltd Forstar Frozen Foods Ltd Tedco Cold Storage R-54, MIDC Rabale, Navi Mumbai 400 701 Jay Ltd Bharat D-25/11, MIDC Navi Mumbai400 705 Mehta & Storage Ice Cold D-36/4, MIDC, Turbhe, Navi Mumbai400 705 CJ Food Jain Plot no – B7, MIDC
Taloja, Navi Mumbai(P) 400 208
250 M.T. ,
Ice Co Pvt
Processing & Ltd Shriram Ice & Storage Cold cold Storage Pvt
Digha, Navi Mumbai400 708 Plot no – 16/17, MAFCO APM Yard, Turbhe, Navi Mumbai 400 705 – 800 M.T. Frozen Foods
MAFCO (P) Ltd
APM Yard, Turbhe, Navi Mumbai
Mehul & Pvt Ltd Modern Cold storage
APM Yard, Vashi, Navi Mumbai
Milk products etc &
220-Atlas Mills compound, Reary Road, Navi Mumbai
Meat, & Eggs
Savla Foods & Ltd Cold Storage Pvt
MAFCO, APM Yard, Navi Mumbai
Frozen Foods & pulses, Dry Fruits/Fresh
fruits Bhanu & Store Ice Cold APMC Market, Turbhe, Navi Mumbai400 708 Prabhu Hira Cold Storage MAFCO, APM Yard, Navi Mumbai 2500 M.T. Dry Fruits, 3000 M.T. Dry Spices Fruits,
Vegetables, Spices, Frozen Foods
Himachal Cold Storage
MAFCO, APM Yard, Navi Mumbai
Crescent Cold Storage
Mahape, Navi Mumbai
Spices, Fresh Foods
MAFCO, APM Yard, Navi Mumbai
List of Cold Storages Mumbai
Capacity In Cu/Mtr
Product Stored Dry Fruits, Vegetables, Spices
Plant no- 5, Chakla, Andheri east, Mumbai
Sunder Cold Storage
Prem Estate, Cross Lane, Mazgaon, Mumbai
Dry Fruits, Vegetables, Spices
Ideal Ice & Cold Storage Co Ltd
Plot No-D3, St No 16, Marol Ind Area, MIDC Andheri, Mumbai – 400 093
Meat, Marine products
Mulund Cold Storage & Ind Pvt Ltd
Pulses, dry Fruits, Spices
Vera Desai Road, Andheri west, Mumbai
Shiv Cold Storage
Lal Bahadur Shastri marg, Bhandup, Mumbai – 400 078
Meat, Fish, Vegetables
Dry Fruits, Spices
Information about existing cold stores in Mumbai, Thane and Navi Mumbai Areas
No of Cold Storage Total Volume m3 Total storage M.T. Application Nos. Hotels Milk products Multipurpose Meat Products Marine Products & Milk Wise Estimated Capacity Storage
23 4 6
29 6 20
Commodities stored in Cold Stores in Mumbai Region
Fruits & Vegetables Potato, Mangoes, Apples, oranges, Export & Domestic
Kiwi Fruits, Grapes, Pomegranates Spices Etc Red Chilies , Chili Powder, (Dhania), Seeds Clove etc. Dry Fruits Dry Dates, Acrot, Dates, Wet Import & Domestic Coriander Cumin (Jira), Domestic
Pista, Cashew nuts, Apricot, Cherry etc. Other Items Eggs, Jaggery, Milk Products, Chemicals, Pharmaceuticals etc. Frozen Products Butter, Ice Cream, Meat, Poultry Products, Processed Food & Vegetables Products
Export & Domestic
Chapter – 2 Introduction to Sarveshwari Village Industries (Nafed Cold Storage) 2.1 History:
Sarveshwari village industry was established in the year October, 2001. The objective of the company was to promote product of village industries & agriculture products. The company has first set up a unit in Jaunpur, Uttar Pradesh for manufacturing handmade paper & handmade woolen carpet. The product were export oriented therefore it has been exported to various countries like Germany & European country. The companies diversify and entered into the warehousing business. It has acquired a cold storage owned by NAFED on lease basis & managing successfully with effect from November 2004. It is a partnership organization. Its chief executive is Mr. Sailesh Singh, having vital experience in the field of business as per objective of the company & good command in managing cold storage business. The other partner Mr. Jaipal is also having tremendous experience in the international business & finance. It is one of the main players in the cold storage industry at APMC market. It is spread over the area of 3000 sq meter. The cold storage is situated in the heart of APMC market, Navi Mumbai from where fruits, vegetables, dry fruits, spices & pulses are available in sizeable quantity. Therefore, huge store of commodity are available in to cold storage. There are excellent facilities available for the loading & unloading of vehicles. There is ample open space available which is an additional facility available for clients for grading, packing of the products. Manpower and Organizational Structure The personnel requirement of the cold storage unit is as under:
Manager (1): The Manager is in charge of cold storage for efficient and continuous running of the plant. He is also responsible for procurement, preservation and marketing & booking of material for storage as well as general administration. Plant Operators (4): They are incharge & responsible for maintaining proper temperature & humidity and for carrying out the actual repair and maintenance of the equipment. Accounts Clerk (1): The role of clerk is to keep necessary accounting records, handling of cash and other matters relating to the accounts section. Others: Helpers (4), Security Guard (3), Peon (1)
2.2 Organizational Structure
Chief Executive Officer
2.3 List of clients of Sarveshwari Village Industries
Client Agri Trade India Services Pvt Ltd
Address Anna Bhavan,
Contact 022 3246699/022
Ground floor, Dana Bunder, Mumbai-9
Block no 4, Ground floor, plot no 578/A, Jam-e-Jamshed Road, Matunga , Mumbai- 400 019
022 22406075/022 22408642
Vatsalya, Bhuleshwar, Mumbai- 400 002 Aarambh India Pvt Ltd 189 central facility building, No 2 , APMC, Sector- 19, Vashi, Mumbai Usha International 134, kana chambers, Modi -1 street, 3rd floor, Fort, Mumbai Navi
Few Products Stored At Sarveshwari Village Industries
Designs of Cold Storage
Cooler without Floor
Cooler with Floor
Freezer with Floor
Thermal Insulation and Insulation and Insulated doors: Thermal Insulation of cold storage Walls: With ND quality EPS of appropriate thickness in one/two layers finished with pre coated sheets. Ceilings: With ND quality EPS of appropriate thickness in two layers and finished with pre coated sheet Floor: With HD quality EPS of appropriate thickness in two layers and finished with tarrelt and P.C.C.
Insulated Doors: Insulated doors with main frame and shutter with PUF insulation and Al. Cladding complete with heavy duty latches and things with strip curtains.
2.4 Operational Requirements and utilities
Cold storage plants being the plants for preservation do not require any raw material etc for operation. The refrigeration plant work on a refrigerant medium which can be Ammonia or HFC/HCFC. In India over 95 % of the large sized cold storage plants are designed for Ammonia refrigerant due to the simplicity of operation maintenance and the lower cost of the refrigerant which is needed only to make good for losses which may occurs during repairs and maintenance of HFC/HCFC are generally used on smaller plants which are designed for automatic operations. Now that the CFCS and some HCFCs have been identified as the gases responsible for damaging the ozone layer surrounding the earth’s atmosphere the production of these are being phased out gradually and as such the availability would pose a problem in the coming years. The alternative developed for these gases are still imported and are very expensive. For this reason at Sarveshwari we use the refrigeration system designed to work on Ammonia refrigerant with proper technical Specification. The main utilities for the operation are the power and water and the estimated quantities are as given below: Power: 136 KVA, 3 Phase, 50 C/s, 400/40 V A.C. Supply Water: 15,000 liters/day (for plant and other consumption). The water used has to be reasonably potable and soft
There is no objectionable effluent generated in a cold storage plant and hence the problem of effluent disposal does not arise.
Chapter – 3 Cold Storage Industries
3.1 Need for Cold Storage
Cold Storage would result in less wastage of foods. It will enhance to the value and the quality of the foods. Thus it will contribute to healthy eating habits. Also it will contribute towards the employment generation. Will over all contribute to the economy; it can prove beneficial to the farmers and will help them in getting value for money, will help in getting remunerative income for farmers.
3.2 Status of Cold Storage Industries:
Size of food market in India-Rs.8,60,000 Crores. Primarily processed food market – Rs. 2,80,000 crores. Value added processed food market – Rs. 1, 80,000 Crores. Investment during the 10th plan is estimated at Rs. 62,105 Crores. Industry growth rate during the last five years is estimated at 7.14% against GDP of 6.2%. Investment required during next ten years – Rs. 1, 10,000 Crores. Low level of processing is done mainly. 2% in the case of fruits and vegetables, 14%in milk, 4% in fisheries, 1% in meat and poultry products. India’s share in world’s processed food production-1%. Value addition 20% against 45% in Philippines. India’s share in global agricultural export is 1.6% of $520 billion. Exports have stagnated during the last five years. There is unorganized marketing and distribution of food items. 72% of food consumption in the world is through organized set up whereas it is 1% in India. Fragmented retailing results in high cost due to inefficiency, wastage. Estimated wastage fruits & vegetables in India 35 %.
80 70 60
Cold Storage of Food and Vegetables
30 20 10 0
29 Thailand India
3.3 Why Increased Focus on Cold Storage
The second Green Revolution will be centered on the concept of ‘farm to plate ‘.Low share of processed foods in the country will open doors to other countries to tap the emerging market for processed food triggered by a burgeoning middle class with increased purchasing power. The Horticulture Mission targets to increase the production of fruits and vegetables to 260MT from the current 140 MT through several interventions. The current wastage is 35% in fruits and vegetables and in certain cases as high as 60%. Apple is the major crop grown in Himachal Pradesh, Jammu & Kashmir due to favorable climate, but there is a rare consumption. But the major consumptions of the product is in other states before a decade there was huge production of the apples but there was not sufficient current demand. This could have been preserved if cold storage facility were available locally. But it was deteriorated n had to be thrown away due to lack of cold storage facility. Similar scenario was observed in Uttar Pradesh were there was ample production of potatoes but due to lack of cold storage facility there was a huge loss. As a result Farmers, Traders suffered huge loss. Earlier setting of cold storage unit was very costly as there was not much more subsidy or government assistance available to the industrialist. Hence there was not enough cold storage. When huge loss was suffered to farmers, there was an
agitation, protest by the framers, local leaders which got the attentions of government. There after government has declared 50 % subsidy on set up of the cold storage unit & NCDC National Co-operative Development Corporation are providing financial assistance on very nominal rate. This has encouraged farmers & entrepreneurs to Set up cold storage unit with modern technology facility. Now many cold storage units have come into existence.
3.4 Why Marketing is Needed in Cold Storage
Apple is the major crop grown in Himachal Pradesh, Jammu & Kashmir due to favorable climate, but there is a rare consumption. But the major consumptions of the product is in other states before a decade there was huge production of the apples but there was not sufficient current demand. This could have been preserved if cold storage facility were available locally. But it was deteriorated n had to be thrown away due to lack of cold storage facility. Similar scenario was observed in Uttar Pradesh were there was ample production of potatoes but due to lack of cold storage facility there was a huge loss. As a result Farmers, Traders suffered huge loss. Earlier setting of cold storage unit was very costly as there was not much more subsidy or government assistance available to the industrialist. Hence there was not enough cold storage. When huge loss was suffered to farmers, there was an agitation, protest by the framers, local leaders which got the attentions of government. There after government has declared 50 % subsidy on set up of the cold storage unit & NCDC National Co-operative Development Corporation are providing financial assistance on very nominal rate. This has encouraged farmers & entrepreneurs to Set up cold storage unit with modern technology facility. Now many cold storage units have come into existence. Example: During the period of Feb to May, When the Pick arrival of Mango maximum marketing should be done so that the profit can be maximized. The product which has got place in the international market such products which are produce seasonal such product can be preserved in cold storage. We can approach such traders which produce on seasonal basis but are exported throughout the year.
We can get business from such trader. With Such trader we can go for Service Level Agreement and can get business.
Chapter 4 Marketing in Cold Storage Industries 4.1 Introduction to Marketing
Marketing in a new world
Marketing is the invention of the 20th century, and for last 80 years, its goal has been to infiltrate consumers’ mind and change their thinking. Since the beginning marketing’s goal has always been to build the relationship between buyer and seller. This relationship is more important in this ever dynamic business environment. Today, technology is playing an important role in building a better buyer and seller relationship. Caught in the interlacing Web of interrelationships, traditional marketing is evanescing for simple reason that its tasks are being automated and assumed by the mysterious and hidden power of information technology. All traditional marketing functions are replaced by the technological functions by creating an impression that marketing has turned out to be a technology. Origin of Marketing
Marketing as an element of business originated in early 20th century, but its roots reach back to the industrial revolution. It idealized the importance of relationship between producer and consumer. McKenna says development of marketing has gone through three distinct ages viz., the age of reach, age of push and age of total access. Age of Reach and Age of Push
No one knows who first coined the term ‘marketing’. In early 20th century, marketers identified the term with distribution, wholesale and retailing. Later in 1920s Procter and Gamble established ‘Brand management system’, which can be identified as a period of branding at very same time Edward Bernays was working on the concept of ‘Public Relation.’ The 1950s has established and popularized the concept of 4Ps which was followed by segmentation, mass production and mass marketing. Role of Technology
Technology has always played an important role in the development of marketing.
In early 20th century, development of rail-roads and Henry Ford’s invention of ‘model T’ has helped companies reach their customers better and faster. In 1920s, Radio emerged as the major technological breakthrough to create a perception that marketing as a function can change consumer behavior. It remained an efficient broadcast medium for two American generations. Post World War, Television came in as a new technological development changing the marketing landscape. Post 1950s, advertisers relied more on television than radio; This new push medium has consistently influenced viewers with a repetitive, consistent and entertaining message. This helped marketers change consumer behavior from ‘I need factor’ to ‘I want factor.’ Total Access
Just like an era of reach and push, new technology, new marketplace, new consumer and competition are once again changing the assumptions of customers and marketers. Now customers are telling what they want companies to do instead of companies suggesting their customer what they need. Total Access is not a broadcast model. Rather, it is an environment where consumer experiences multiple and simultaneous competitive buying opportunities. Internet is seen as one of the greatest technological innovation of the last century. It has made availability of information easier and cheaper. Internet has successfully laid the seeds of Total Access which flourished with mobile technology. Mobile market has improved customer’s comfort level and once again changed the customer behavior. These two technological breakthroughs have not only changed customer behavior but also changed the way market behaves. It is evident from the changed classification in era of Total Access. In the era of Total Access, customers can be divided by four parameters—the information explorers, the information active, the information followers, and the information passive. Technology has changed at an unprecedented pace in the past few decades. It has changed business landscape many a time in last twenty-five years. It has enabled farsighted business to outpace their competitors by creating new products and services, by managing business
process and by operating business more efficiently. Law governing these technological innovations is also seen as the law of new marketplace.
4.2 Objective of the study
Every business is wired today, marketers and academicians in this increasingly networked business environment is writing the new rule of marketing. These new laws of marketplace are playing on important role in developing marketing strategies. Branding Lost its Meaning!
The marketing function disappears into a network of relationships and responsibilities between man and machine throughout the value chain. For marketers, the end goal changes from creating brand awareness to satisfying customers. In today’s network economy, brand itself becomes a ‘persistent presence’ which sustains the customer dialogue whenever the customer chooses. Branding is all about customer loyalty. It is always seen as a result of customerproducer relationship. In the era of total access, this relationship is becoming more transactional than personal. In total access environment, many consumers will choose a brand for pragmatic reasons rather than emotional. The ever changing marketplace and shifting consumer loyalty is creating challenges for producers. Few of the challenges for producers are: Changing Symbol: Technology has changed the way people perceive things, which in turn, has changed business practices. Today, ATM has emerged as a symbol of trust in consumers’ conscious mind replacing old economy bank infrastructure. Impact of Technology: Building brand in technology business is building alliances and relationship. It is seen that in technology market, developing brand is all about developing industry standard. Hidden Choices: The component of the end product is mostly unknown to the end consumer. Consumers often do not know with which producer they are dealing with. Intel and Visa are the diffusion distributors of Dell, Compaq, and Bank of
America. The erosion of brands has evolved from technology, social and cultural influences. An easy access to information and power of choice has converted onetime “brand loyal” to “brand switcher”. Today, consumers have choice to select from wide variety of offerings; hence user preferences vary from situation to situation. In the last two decades, consumer preferences have changed. Few people confuse preferences with values. Preferences change with time and vary widely with the changing social and economic context of a particular market. It changes with changing technology, but values do not. These changing preferences give marketing a new dimension of mass customization and self service. The business is looking for lasting market presence and sustaining brand. There are two keys to it: Point of access and marketing architecture network. Persistent presence
Market is changing its dimension at the speed of thought. This dynamic change is changing consumer’s preferences and perceptions. Today, every business has persistent presence. In fact, in this competitive market, it is a must for the very survival of any business. Persistent presence is consumers, consistent and reliable experience with the producer or retailers. A logistical system that focuses on operational system and communicational system of any company is the backbone of the persistent presence. Natures of business, market condition, company’s competitive position are few of the factors which help any company in achieving persistent • over • Embedded presence Presence presence. through It digital is possible network e.g., the e.g., in many ATM, ways: e-broking world. Intel
• Physical presence: Location, Access e.g., Starbucks has more than 3,000 points all
• Presence through services e.g., E*TRADE, Yahoo!, Citibank Company can establish persistent presence in many ways. It all depends on the nature of the business and environment the company is operating in. McKenna suggests a few key points to
• Market Architecture Approach to Total Access e.g., Dell, Wal-Mart • Beef up your customer’s support infrastructure e.g., Coca-Cola • Think Total Access e.g., AOL as a total Internet venture to AOL as an entertainment and media company which provides total access option. • Invest in Time, Money are customer Relationship e.g., CRM initiatives The Market Architecture
Market architecture is the functional relation of inbound and outbound functions. In transactional working environment with shortened product life cycle, changing technology and shifting channels, and increased competition, marketing architecture has become dynamic. Apart from technological innovations, human interactions also play the key role in defining marketing architecture. Shared Creativity: In the B2B market place, to gain market share, companies work closely with their customers to know their needs and demands better. Few of the innovations driven by customer needs are Apple II personal computer, Microsoft MS-DOS. Keeping Customer Trust: To build or sustain customer trust, marketing architecture must perform as per acceptation of the customer and respond consistently to their queries and problems. Business earning customer trust can retain it either by meeting or exceeding expectations. Nurturing Change: The Organic Factor- Marketing architecture is dynamic. The ability to respond to the new customer information and changing business and social need is yet another important aspect of marketing architecture. IT is playing an important role in the development of dynamic marketing architecture, and also in the relationship development between the producer and consumer. In a situation, when information related service has shifted from retailers or distributors to producers enterprise architecture approach in marketing becomes important. Marketing architecture by learning how to better interact with itself in response to the environment and in connection with the customers’ needs and wants. The
important factors for successful marketing architecture are: Customer satisfaction, developing different channels for different needs, identifying value of connected partners, and developing the strategic framework. Total Global Access
Internet has changed the definition of the market infrastructure. Effective communication and transport methods have narrowed down the gap between the supply and demand time giving a new dimension to the global marketing. Growth in market economies, deregulation, privatization, and new global consumers has all created a new global market. The focus in this wired world is changing from ‘think globally but act locally’ to ‘act globally connect locally’. World Wide Web helps business in connecting all channels. It also connects people across border and helps them come closure to market and increase their interaction. Internet has helped developing total global access environment. With total global access, it is felt that the world has become more culturally diverse. In this changed business circumstances, marketing executives need to take a comprehensive world market view to respond to increasingly competitive environment where customers have access to all possible information and are looking for local source and solutions. This global connectivity has increased with mobile commerce giving birth to a new set of consumers, ‘mobile global consumer’. The global e-commerce is focusing more on establishing global persistent presence and developing global brands. Roles and Responsibilities
The rise of Internet and total access has created a self service model for marketing known as ‘production by masses’. This model works by providing customer with information database and allowing them to design their expectations consistently and reliably. The rise of Internet and total access has made marketing as everyone’s job. It is the matrix of responsibilities shared by—CEO who is seen as chief strategist, who also
work as a chief marketing executive of the organization. He integrates all the resources that enterprises need to invest and design to build a global infrastructure strategy. • CIO is seen as chief total access architect. He possesses required skills, to be the interface between the customers’ needs and company’s response. • Director of R&D is seen as the chief novelty officer. Customer preferences change fast in total access era and it is the duty of the Director, R&D to come up with expectations. • Vice president of marketing takes care of demand and supply factors and other traditional marketing functions. Corporate Creativity innovative products. • Vice president of operations and logistics helps meet customer delivery
Market impatience, competitive intensity, volatile market reaction and high expectations from customers and investors are few of the factors which have created competitive environment. In this competitive environment, to gain edge over other players, companies have to work on corporate creativity. More creative the company is throughout its entire enterprise; the more successful the company will be in sustaining the growth.
The Marketing Mix model (also known as the 4 P’s) can be used by marketers as a tool to assist in implementing the Marketing strategy. Marketing managers use this method to attempt to generate the optimal response in the target market by blending 4 (or 5, or 7) variables in an optimal way. It is important to understand that the Marketing Mix principles are controllable variables. The MM can be adjusted on a
frequent basis to meet the changing needs of the target group and the other dynamics of the M. environment. Historically, the thinking was: a good product will sell itself. However there are no bad products anymore in today's highly competitive markets. Plus there are many laws giving customers the right to Product return question create products on what that he has perceives as bad. Therefore the product its become: does the organization intended customers want? Define the characteristics of your product or service that meets the needs Price of your customers. How much are the intended customers willing to pay? Here we decide on a pricing strategy - do not let it just happen! Even if you decide not to charge for a service (a loss leader), you must realize that this is a conscious decision and forms part of the pricing strategy. Although competing on price is as old as mankind, the consumer is often still
Functionality, Quality, Appearance, Packaging, Service, Warranty Brand, Support,
List Discounts, Financing, Options, Allowances,
sensitive for price discounts and special offers. Price has also an irrational side: something that is expensive must be good. Permanently competing on price is for many companies not a very sensible approach. Available at the right place, at the right time, in the right quantities? Place Some of the revolutions in business have come about by changing Place. Think of the internet and mobile telephones. (How) are the chosen target groups informed or educated about the organization and its products? This includes all the weapons Promotion sales in the marketing Public armory - advertising, selling, promotions, Relations, etc. While the other three P's have lost much of their meaning in today's has markets, to focus on. The function of the Marketing Mix model is to help develop a package (mix) that will not only satisfy the needs of the customers within the target markets, but simultaneously to maximize the performance of the organization.
Locations, Logistics, Channel Market Service members, Coverage, Levels, Channel Motivation,
Relations, Message, Direct Sales, Sales, Media, Budget
become the most important P
4.3 Scope of the Study
Every research study has some scope which can be constructive and accommodating for the industry and as well as for the people. So in this study the researcher has found some significance of the study. With the study researcher gains knowledge about the various aspects of food processing industry. The various products that are produce in the Indian agriculture market are fruits, vegetables and dry fruits. It highlights on the plight of the Indian food processing industry. It’s contribution to Indian economy. It brings out role of food processing industry in saving the food wastage. Through this report researcher has commence with the cold storage industry in India. It also highlights the economy policy and the requirement for cold storage industry. It points out the prospect of the cold storage industry. It gives an idea about the number of the cold storage operating in Mumbai, Thane and Navi Mumbai region. The various products stored in cold storage and other details. It also highlights on the topic of marketing. The role of marketing in a business. The need of marketing in cold storage industry. Moreover this study provides information and can be of a great help for an individual if he looking out to start a new cold storage unit. The information about the capital needed and from which other institute the fund can be raised is mentioned in this study. Here the researcher has made use of the observation method in determining the factor that can contribute to the growth of the business. The need of a SLA (Service Level Agreement) with a brief overview of SLA has been discussed in the study over here. Advertising which plays as important in a success of a business has been mentioned in the study. The medium for advertisement selected has been newspaper. The merits and demerits of advertising in newspaper have been discussed here. Advertisement can be effective in a business for its growth.
4.4 Research Methodology:
Research can be defined as a scientific and systematic research for pertinent information on a specific topic. In fact, research is an art of specific investigation. Research is an activity and as such the term be used in a technical sense. Research can be stated as the manipulation of things concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge whether that knowledge aids in construction of theory or in the practice of an art. Research has its special significance in solving various operational and planning problems of business and industry. Research methodology is a way to systematically solve the research problem. Thus, when we talk about research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the contexts of our research study and explain why we are using a particular method or technique. The steps involve in the research methodology are 1. Defining the Problem: In defining the problem, the researcher should take into account the purpose of the study, the relevant background information, the information needed and how it will be used in decision making. Problem definition involves discussion with the decision makers, interviews experts, analysis of the data 2. Research Design: The research design tells about the mode through which the entire project is prepared. The research design put down the foundation of conducting the project. A good research design will ensure that the research project is conducted effectively and efficiently 3. Formative the data source: It means from where the researcher collect the data. It can be primary data or the secondary data as both sources are necessary in order to get the proper result 4. Analyzing the data: After the data collection is over the researcher analyzed the data and edited them and turned them in the useful tabulations. So, it became useful in report study with the industry
5. Interpretation of the data: With the help of analyzed data researcher managed to prepare project report. The analyzing of data will help the researcher to reach towards its objectives. The interpretation of the data is required so that for others it is easy to understand study in simple manner.
6. Report writing: The entire project should be documented in a written report.
This is the final step in preparing the project report. The objective of the report writing is to report the findings of the study to the respective authorities The purpose of research
1. Discover answers to questions through the application of scientific procedures.
2. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. 3. Research helps us to gain familiarity with a phenomenon or to achieve new insights into it. 4. To portray accurately the characteristics of a particular individual, situation or a group. 5. To determine the frequency with which something occurs or with which it is associated with something else.
6. To test hypothesis of a casual relationship between variables.
The research method used was
1. conclusion oriented research method where after working with the cold storage
unit it was found that how marketing can be a tool to increase the business and revenue of the firm. 2. The problem was identified, redesigns the enquiry as preceded and was prepared to conceptualize. 3. Qualitative approach was there for the research purpose as during the summer internship there was a function of intern’s insights and impressions. 4. The result that would be generated will be either in non-quantitative form or in the form which are not subject to rigorous quantitative analysis.
4.5 Limitation of the Study:
As far as it goes to the limitation of the study, it can said that marketing is more of practical and less of theoretical aspects. The nature of the market is very volatile. It keeps on changing and fluctuating. As a marketer what would seem right and appropriate for me may or may not fit and seem to be appropriate for few. So the conclusion and the suggestion may or may not be accepted by the end user. Apart from this, the practice and policy of every organization is different. So, any conclusion or suggestion may not be accepted in general for other cold storage industries. The government policy also differs from state to state. All this does account for the research work, the observation and other.eg: the marketing mix which is ideally 4p’s at times can be more then 4 or less than four.
Chapter 5 Facts and Finding
After studying the organization function, its requirement to operate, the business nature and environment there are areas which needs due consideration for increasing the profitability of the cold storage. As the need of cold storage industry has been on the rise in the past few years. It can be said that with proper set up and taking care of all the aspects required for the cold storage industry the revenue of the organization can be increased. Though the flow of the business is smooth it can be improved more. There times when the utilization of the cold storage is not upto 100 %. Also there are slacks and lean periods where in traders don’t have stocks.
Hence even the cold storage industry does not get orders from the clients. Due to this the revenue also goes down for some time. In order to see that the revenue is coming regularly steps has to be taken for it. There also might be a chance where in there might be new traders but they might not be aware of the presence of the Sarveshwari Village Industries in the market. It is quite imperative to make your existence and presence known in the market for the betterment of the organization from business point of view. In order to have an edge over the competitors the USP (Unique selling point) of the organizations needs to be emphasized in the market. This will ultimately help in bringing new clients also having hold over its current clients. Since cold storage is a service industry it is essential for the organization to always provide a superior service to its clients. As the clients are their customers they have to be at the top most priority. No business can exist or perform better without serving best to its customer. As quoted by Walt Disney “Do what you do so well that they will want to see it again and bring their friends.” But the question that arises would be how it can be done? To this it can be answered by implementing new methods in the business. At Sarveshwari all the modern technological machinery are available. The power supply problem which is a problem can be eliminated. It will be thus beneficial for the cold storage to run its operation continuously and maintain the temperature for the fruits and vegetables. Thus constant temperature can be maintained. Apart from this the flow of revenue being constant it can be worked out by entering into SLA (Service Level Agreement) with majors clients of the organization. Under this there will be continuous service provided to the clients. This will be in applicable even when the demand from the clients is less. As advertisement plays an important role in creating awareness among people. So we can put up advertisement both during the pick as well as during the lean period. This might result in bringing up new clients. There can be a possibility that though there are many players in the market but a new entrant (Trader) in the market who has less
idea about how he can preserve his products from spoilage, the advertisement may attract him and can approach to Sarveshwari Village Industries. In the next chapter the facts and findings have been mentioned in brief. The facts and finding have been generalized and interpreted. Both Service Level Agreement and advertisement have been covered in brief.
Chapter 6 Analysis & Interpretation
After reviewing the scenario, working of cold storage industry at Sarveshwari Village Industries (A Nafed Cold Storage), the following were analyzed and interpreted.
6.1 Service Level Agreement
A Service Level Agreement (SLA) defines the relationship between service provider and the business customer and/or external customer. An SLA clarifies the responsibilities between the service provider and the customer and it provides a
framework and a common understanding for both parties.
An SLA is most
effective when the service provider and the business customer collaborate on what should be included. Any SLA needs to be agreed upon by both parties. This becomes a guideline for managing the relationship between the customer and the Service Provider. Because a SLA can be used to describe a variety of cold storage services; the particular elements that are included in an SLA will depend on the circumstances. A good SLA addresses: What service(s) are being made available to what customers? What level of service or quality of service should the customer expect? What are the costs to provide this level of service? How will the service be delivered? How will the service provider monitor or track and report on performance? When will the SLA be reviewed? This document describes what must be included in a Service Level Agreement Who prepares the SLA? The service provider develops the SLA in collaboration with the business customer How To write a SLA? An SLA is not a technical document and should be written in business terms. Everyone needs to be able to understand it. Use clear and concise wording and avoid ambiguity. Avoid legal and technical jargon.
Avoid unnecessary technical terminology. Provide a glossary of terms if necessary. Have someone independent from the process review the SLA.
Service Level Agreement Contents
What is included in a Service Level Agreement will change depending on the circumstances and the business. The most important thing to note when creating an SLA is to keep it simple, measurable and realistic. It is important to understand that SLAs cannot cover every possible situation that may arise. Listed below are key sections that should be included in any agreement. General Overview Description of Services Service Performance Level Service Provider and Customer Responsibilities Problem Management and Disaster Recovery Process Periodic Review Process Termination of Agreement Process Signatures
This is a Service Level Agreement (SLA) between Cold Storage service provider & Business Customer name. The purpose of this Service Level Agreement (SLA) is to identify the basic services, and any agreed upon optional services, to be provided by Cold Storage service provider for Business Customer Name.
This SLA covers the period from Date to Date and will be reviewed and revised at the end of this period. Include a brief description of what the service or application does.
Description of Services
Describe the service that the provider is promising to the customer. What systems are supported? What services are included? What services are NOT included? How will service be delivered? What are the hours of operation (regular business hours and after hours support)? When will regularly scheduled maintenance be performed?
This section describes how the service provider will monitor or track and report on performance. The service provider must perform according to predefined and measurable metrics. Choose metrics that are easily collected. Balance the importance of a desired metric against its ease of collection. Avoid including an excessive number of metrics in the SLA that can’t be analyzed in a timely manner. Any metrics included in a SLA should be capable of being measured on a regular basis and the SLA should indicate who will provide this information. Some of the most commonly used metrics include: SERVICE COSTS What are the costs to the business customer for the service?
Service Provider and Customer Responsibilities
Both the Service Provider and the Customer have responsibilities in support of the service delivery process. It is important to distinguish between these relationships. Describe the service provider duties and responsibilities. Examples are: Meeting response times associated with service related incidents. Generating service level reports for customer. Training required staff on appropriate service support tools. Notifying customers about all scheduled maintenance. Developing and maintaining system related documentation (this could also be a customer responsibility). Managing user accounts. Describe the customer’s duties and responsibilities. Examples are: Adhering to any related policies, processes and procedures. Reporting problems using the problem reporting procedures described in the SLA. Scheduling in advance all service related requests and other special services with the Service Provider. Developing and maintaining system related documentation (this could also be a service provider responsibility). Making customer representative(s) available when resolving a service related incident or request. Communicating when system testing and/or maintenance may cause problems that could interfere with standard business functions.
Periodic Review Process
When an SLA is first initiated and the service is just beginning, the SLA should be reviewed on a monthly basis. These reviews can then be done quarterly, semi51
annually or annually after this initial startup period is over. An SLA should be viewed as a dynamic document and should be periodically reviewed and changed when the following events occur: The environment has changed The client's expectations and/or needs have changed Workloads have changed Better metrics, measurement tools and processes have evolved. An SLA should be reviewed at a minimum once per fiscal year. List who is the “document owner” and who will facilitate regular reviews of this document. Contents of this document may be amended as required, provided mutual agreement is obtained and communicated to all affected parties. The “document owner” will incorporate all subsequent revisions and obtain mutual agreements / approvals as required. Document Owner: Document Owner Name Review Period: Review Period (e.g. annually or Quarterly) Next Review Date: Next Review Date
The final SLA should contain signatures of appropriate representatives from the Service Provider and the Customer. The Service Provider representatives would typically be a CEO or the Proprietor
6.2 Advertisements in Newspaper
Paid-circulation newspapers are a popular advertising medium for most local businesses. They are the oldest forms of mass media, and they continue to be one of the largest, as measured by volume of advertising dollars. Industry giants, as well as the local convenience stores, use newspapers to advertise. Every community has its own newspaper. There are over 1,600 paid-circulation daily newspapers in America and several thousand additional local weekly papers as well.
Every advertising medium has characteristics that give it natural advantages and limitations. As you scan your local newspaper(s), you will notice a number of businesses that advertise on a regular basis. Observe who they are, and how they advertise their products and services. More than likely, if the advertisements are repeated, the ads are working. Consider this media if you are selling to a general market, because newspapers are generally bought by all segments of the population. Even though the newspaper no longer enjoys its former role as the almost exclusive source of news, they still remain a strong factor in their specific sphere of influence.
Advantages of Newspaper Advertising
There are a number of characteristics of paid-circulation newspapers that make them especially appealing to advertisers:
Most paid-circulation papers, both daily and
weekly, reach the majority of homes in their primary city or town.
Almost every home in the United States receives a newspaper, either at the Newspapers permit an advertiser to reach a large number of people within a The printed advertising message has both permanence and desired obsolescence.
newsstand or by home delivery.
specified geographical area.
A reader can refer back to, or even clip and save, a particular ad, yet tomorrow’s edition is new and fresh and as eagerly sought by the same reader.
The newspaper offers a predictable frequency of publication: once, twice or up Newspapers have immediacy. You can place an ad on Monday and be getting
to seven times a week.
results before the week is over. Short deadlines permit quick responses to changing market conditions.
People expect to find advertising in their newspapers. In fact, many people buy Reading the newspaper has become a habit for most families. It has something You can reach certain segments of your market by placing your ads in different An advertiser has flexibility in terms of ad size and placement. Production
newspapers just to read the ads from the restaurants, movies and discount stores.
sections of the paper such as: sports, comics, crosswords, news, classifieds, etc.
changes can be made quickly, if necessary, a new insert can be added on short notice.
Advertisements can be examined at leisure. Exposure is not limited, so readers It offers a great variety of ad sizes. If you don’t have a large budget, you can still Many options are available. Copy alone; copy with graphics; black and white; or Newspaper supplements often feature certain subjects that readers pull out and
can take their time reading the messages.
run a series of small ads.
Disadvantages of Newspaper Advertising
Advertising in the newspaper is not without a few inherent disadvantages, such as:
Any given advertising message must compete for the reader’s attention. The
paper may contain hundreds of ads, as well as dozens of articles and features for the reader to wade through. If the total time spent scanning a newspaper is only 20 minutes, your ad may not be noticed by a significant number of people.
You have no assurance that every person who receives the newspaper will read
your ad. They may not read the section you advertised in, or they may simply have skipped the page because it contained little or nothing else of interest.
It has a relatively short life span (newspapers are typically read once, then
discarded), thus requiring multiple insertions.
Just as with any advertising method, weigh the advantages and disadvantages before deciding where to spend, and we will make the most of your advertising dollars.
Chapter 7 Conclusion & Suggestions
In this last chapter the following are conclusions and suggestions.
Marketing aims at meetings the needs of the customers. It helps in strengthening the business. With proper marketing a business can reach at the pinnacle. Here in this summer internship project it can be concluded that marketing is more of the practical aspects coupled with the theoretical knowledge. Cold storage industry is indeed a sunrise industry with tremendous potential. It will further contribute to the Indian economy and will play a vital role in prevention of food wastage and
spoilage. There are times when India needs to import food grains in spite of good production. This can be prevented only after setting up adequate cold storage unit. Both Government and Private entrepreneurs should work towards this. The revenue of the Sarveshwari Village Industries (Nafed Cold Storage) can be increase by improving few facilities like continuous supply of electricity. Proper care and maintenance of the machinery needs to be taken. The supervision of the temperature for the products stored is also important. Service Level Agreement can help in getting revenues from the clients. The service standard of the firm should be at its best as it is the key to success. In order to create awareness about the industry in the market advertisement can be done.
7. 2 Suggestions:
The following points have been suggested
1. Sarveshwari Village Industries (Nafed Cold Storage) can opt for Service Level
Agreement (SLA) with its major clients to enable the continuous flow of revenue. It will also lead in improvising of it service standards.
2. Sarveshwari Village Industries (Nafed Cold Storage) can go for advertisements
in the newspaper during both the Pick and slack period. It can be vital in increasing the business as awareness and the presence of the unit will be made in the market.
3. For continuous power supply Sarveshwari Village Industries (Nafed Cold
Storage) can go for generator service.
Books: Research Methodology Methods and techniques by C.R. Kothari
Indian Food Processing Industry: Some Perspectives by Bala Krishna A V, Radha Krishna G
Journals: APR Project Consultants. Pune Newspaper: Nav Bharat Times, 24 july 2009
Websites http://www.google.co.in http://www.valuebasedmanagement.net/methods_marketing_mix.htm l http://www.websitemarketingplan.com/small_business/newspaper.ht m http://www.releasemyad.com/rates_offer.php
Annexure 1: Cold Storage Data of Various Fruits and Vegetables Annexure 2: Cold Storage Data on few products Annexure 3: List of Cold Storage Navi Mumbai Annexure 4: List of Cold Storage Mumbai Annexure 5: Information about Existing Cold Stores in Mumbai, Thane and Navi Mumbai areas Annexure 6: Commodities stored in Cold Stores in Mumbai Region