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(Reg No: 35106116)

In partial fulfillment of the requirements for the award of the degree





I am very much indebted to Dr. JAYASHREE SURESH, Head of the Department MBA, SRM School of Management, Kattankulathur for her encouragement during the project and the college management for providing me all facilities to do the project work in JK PAPER LTD.

With profound sense of gratitude and regards, I acknowledge the support and guidance of my internal project guide, Mr. ARUN KUMAR , SRM School of Management Studies, Kattankulathur for his excellent guidance and valuable suggestions throughout the execution of this project.

I take this opportunity to thank Mr. KULDEEP SINGH (Marketing manager) for his able direction of professionalism in allowing me to complete the project work.

I also wish to express my sincere thanks to Mr. RANESH BARNALA (HR manager) who gave me an opportunity to do project here and all the staff members and non teaching staff in the Management Department and the respondents for their kind Co-operating during my project.

I would like to thank my parents, brother, for their invaluable support and help even though I could never thank them enough.

DECLARATION Purno chandro panda is a bonafide student of SRM School of
Management, Kattankulathur and would like to declare that the project work titled "A STUDY ON SALES & DISTRIBUTION CHANNEL OF JK PAPER MILLS LTD.," was undertaken in partial fulfillment of Master of Business Administration degree course of the SRM University is my work and was not duplicated from previous report.

(Purno chandro panda)



India has been perusing an active industrial policy. as industrialization is a must an order to keep the wheel of economic progress running. And to increase the sales it emphasis the focus of the organizations selling and distribution channel.Introduction Of late. Marketing management relates to this function by marketing its products from the lower grade to upper grade of the organization and by embarrassing policy determination as well as implementation of policies. . Effectiveness is any field of management requires working through and managing marketing and selling the products of the organization. The optimization of quality product an increasing profit can not be achieved unless the two great pillars of an organization that is the employer and employee cooperate mutually to strive for the objectives.

intermediaries in selling and distribution.OBJECTIVE OF THE STUDY: The objective of study can be enumerated as follows. warehousing. To familiarize our self with the marketing department and to know about its selling and distribution function. To study the statutory and no statutory matters related to sales and distribution. dispatching system. transportation. . To know various aspects of the marketing department such as order execution system.

. sales and distribution. It also presents first hand information regarding the organization. marketing. the issues that goes to make up an effective selling and distribution system in connection with marketing. This report on JK paper mills is basically meant to represent the basic function of marketing in relation to sales and distribution and the various aspects.SCOPE OF THE STUDY The scope of the study was restricted to JKPM. and also about the provision for manpower requirements in the company. working hours and conditions nature of production. jaykaypur only. system.

He died at age of 53 on 31 may 1937 and left the legacy of his spirit of patriotism . JK Jute mills co. Nylon-6 (1962). woolen textiles. EX: cotton. The initials JK are the grouping of the first letters of the names of juggilal and kamlapat. nylon and other synthetic and manmade fibers. sir padmapatiji singhania. Mauritius. a series of industries with diversified interests were set up by him-kamala ICE factory. Today JK organization is engaged in diverse industries. He was a patriot and all his energies and activities forward the fulfillment of one of the central object. plastic. Lala Kailashpatiji singhania and lakshmipatiji singhania. chemical. father and son.ORGANISATION PROFILE JK organization is an association of industrial and commercial companies. swadeshism and the aptitude for planning and social service to his three illustrious sons. jute textiles. cosmetics & so on. who along with other family members have contributed the best of their services to the growth of the organization in a team spirit. which was founded in 1918 by (late) Lala kamla patji singhania with its head quarters at Kanpur (up). st . cement. and Rajasthan and also in Indonesia. JK cotton manufactures. west Bengal. tyres & tubes. It has its ramification in seven states of India. Uttar Pradesh. electronics. Between 1921 and 1931.that of industrialization of India through INDIAN capital. metal engineering . textile. sugar. The group was a pioneer in indigenous manufacturer of numerous products for example it was the first time in India to produce calico prints (1933) . ltd. paper boards. rayon. Orissa. Indian management and above all Indian know-how. Maharashtra. Kenya etc. Madhya Pradesh. JK Iron & steel co.

e. TV sets (1968). For Administrative convenience. Northern Zones (Delhi)). DMT Monomer and polestar waste (1976). Acrylic fibers (1969). JK organization is divided into four Zones i. . Eastern zones (Kolkata). formal dehyde. South Zone (Chennai) and Western Zone (Mumbai). and steel belted radial tyres(1977).sodium sulphite.

but then paper was invented in china and was called „PAPYRUS‟. Paper has been found to be the essential product that we use in our day-to-day life. Another big example of use of paper is none other than my project work. Paper has been found to have necessary use besides being a stationary and it may perhaps be true that equipped with this powerful art craft mans has been for the century‟s discovery new usage and benefits. Similarly in our day to day life. wooden planks. India‟s record is dismal in the scripts on leaves and metals. Even in its primary embodiment as a writing aid over whish our attention is focused at the moment. Later on which the development of the paper sheet . In spite of good achievement to its credit in the development of the economy. Long back people used to write on walls. printing and several other purposes. But it is not possible to go out of . Indeed it involves in itself a wide range of activities of WHITE HOUSE official releases to kinder gaiter copywriting from toilet issue paper to the currency notes many more. without which this would not have happened. leaves of palm etc. it become possible for every thing known to us in the form of books records and reports. clothing and shelter are primary and essential for us. a material that has been playing such an important role in our day to day life initiated the research of this project to take up this individual. .INDUSTRY PROFILE Paper has become a part of our daily life. The basic needs like food. paper is used to a great extent and we at times cannot move an inch in the work without paper. Though the computers have existed and may programs have been done to do paperless job works. it has much to talk about. Since then the world has got an excellent media for writing.

Limited were further diversified when it set up a more modern cement plant by the name Lakshmi Cement with an installed capacity of 5 Lac tones per annum in Zero Industry area of District Sirohi in Rajasthan. Factories are facing raw material problem. JK corp Limited. Bombay are regarded as the flagship companies of JK organization.paper or do not need it any instance of time. JK Corp. Limited along with JK Remands. . But on an average almost all companies are doing well. 00. In the year 1962. started its operation with a Board mill at Bhopal mill for manufacture of straw Board. Presently the installed capacity of the paper mills and Board Mills stand at over 1. It is a multi product and multi-unit company. plantations of the trees. Since then the activities of the company have been diversified from time to time. The company which is fittest able to survive and cope with the condition. Incorporated in the year 1938. For this substitute raw material are being constantly being worked for. Along with cutting.000 tpa. COMPANY PROFILE JK corporation limited (formerly straw products limited) belongs to the Eastern Zone and is one of the member companies of JK organization. JK papers and Board enjoy high reputation for qualities in the year 1982. This is the reason why the researcher chose paper as the product From economic point of view paper industry in all over world is facing problems. Hardwood and bamboo being prime raw materials for the industry need cutting of the forest. Only few companies are doing well. the activities of JK Corp. They are leading to closure of the company.000 tones per annum. Limited set up this integrated pulp and paper will in the backward district of Rayagada in Orissa with an installed capacity of 18. But on an average almost all companies are carrying under loss. JK corp.

customer obsession. Paper has been produced by making pulp from hard wood and bamboo and processing through paper machine.JK Corp. at Kankroli in Rajasthan in technical collaboration with General tyre international Company of USA. technological innovation and cost leadership with a clear focus of environment while continuously enhancing share holder values. a joint sector company in the year 1985. (IPICOL). JKPM is producing writing and printing paper including coated. for the manufacture of 15000 tones per annum of Polyster stable Fiber in the industrially background Dhenkoral District of Orissa AT present Orissa synthetics Limited is a number unit of JK Corporation Limited. VISION To be a dynamic bench mark and leader in the Indian paper market. MISSION To achieve growth and leader ship through the JK brand equity. Limited has successfully promoted in 1977 an Automobile Tyres and Tubes project in JK industries Ltd.. JKPM ltd JKPM started at 1962. The company in association with the Industrial Promotion and Investment Corporation of Orissa Ltd. board paper & main leader in copier grade paper. .. have promoted orissa synthetics Limited. A government of orissa undertaking.

government control related to safety and health and make efforts to develop a safety and health culture in the organization. core permit systems. Continuous reduction in cost of production. 4. 3. With the aim to become the business leader in the pulp and paper industry. 5. SAFETY AND HEALTH POLICY JKPM is committed to safety and health in all areas through preventable measures continuous development and improving the work environment. medical facilities. . Involves all employees in system and process improvement through team work leading to quality excellence. We are committed to achieve zero customer complaints.VALUE Integrity Trust Caring for people Commitment to excellence TPM POLICY 1. We shall adhere to all legislation. Create clean and safe environment. 2. In our continuous pursuit on organizational excellence by maximizing over all plant effective ness and achieving total customer satisfaction. we give top priority to proactive steps like safety audits.

. Conservation of resources. Reducing particulate emission. Reducing pollutants in discharged water. 3. 4. and process of gradation improved work practices. By a forestation through social and farm forestry supported by clonal technology. Cleaner technology and processes. 5. Solid waste management. ENVIRONMENTAL POLICIES We shall improve our environmental performance by 1. test prepaid ness and emergency response and full participation of employees. 2.

M.K. Conclusion. Production process. Introduction Order execution system. Distribution channel Physical Distribution.P. Packing strategy. .SELLING AND DISTRIBUTION CHANNEL At J.

It is pipeline for goods flow from manufactures to consumers because the distribution is often the least flexible elements of the marketing mix. business success is derivative of the organization efforts to transform their resources – tangible and intangible to deliver right product at the right time. other intermediaries and the final consumer of products. In simple word a channel of distribution consists of specialized marketing institutions that relates to each other‟s as buyer and sellers. marketing channel decisions are a key component of the marketing mix. Such a group of organization is called marketing intermediaries because it facilitates exchange between producers.INTRODUCTION Distribution is the all-important link between a manufacturer and his customer. The word channel has its origin in the French word for canal. The concern is for designing a distribution strategy to facilitate the smooth physical flow of products from the manufacturer to the place from the customer can buy them. . as marketing channels is a group of inters related individuals or organization that directs the flow of products to consumer. The term “Channel of Distribution” thus connotes a pathway taken by goods as they flow from the point of production to the point ultimate consumption. In the current customer focused and shrinking lead times. It can also be said as the organization‟s growth and success is largely depends upon it‟s selling and distribution strategy. A channel of distribution some times called. Channels of distribution refer to the alternative paths through which the goods can be routed.

wholesale and retail.” By: Cundiff. A Distribution Channel is the structure of intra company organization units and extra company agents and dealers. Through a sound Distribution Network and launching aggressive advertisement campaigns a company can carve out a niche for itself.SOME DEFINITION OF SELLING AND DISTRIBUTION CHANNEL: “A Distribution Channel is a path traced in the direct or indirect transfer of title to product as it moves from a producer to ultimate consumer. and Still. W. The term Channel of distribution is used to refer to the various intermediaries who help in moving the products from the producer to the consumer. Channel of distribution are concerned not only with the physical movement of goods but also with their promotion. selling and marketing control.. IMPORTANCE OF CHANNEL OF DISTRIBUTION: Channel of distribution is the most powerful element among marketing mix elements. E. A number of utilities are created by prompt and efficient performance of the function of physical distribution. . producer service is marketed. though which a commodity.

Large distribution chains have grown in size in many industries. They bring goods to the consumers in a convenient shape.Channel of distribution helps movement of goods form one place to another and thus creates place utility. They make it possible for the consumer to get the goods when he wants them and thus create time utility. TYPES OF MARKETING / DISTRIBUTION CHANNEL : Now a days there bas been a trend towards a greater presence of intermediaries because Cost of selling directly to consumer has rise very rapidly. Indirect selling through middleman. unit size. When production places and markets are at distance place. It is a promising area for cost reduction. . Channel of distribution can be grouped under two headings. Many industries have concentrated on lowering inventory carrying cost by placing inventory when and where it is needed. It provides competitive edge for the organization. style and package and thus create convenience value. physical distribution acts as an important element of marketing. It helps to build clientele. 2. And pride of ownership and thus create possession utility. Direct selling by manufacturer. 1. They make it possible for consumer the consumer to obtain goods at a price he is willing to pay and under certain conditions that brings him satisfaction.

Indirect selling through middleman and intermediaries : In the case of manufacturer take the help of middleman or the agencies to research their ultimate consumer. broker etc. Or arranging own decisions using post office or to establish own retail shop. Some functional middleman are mercantile agent. They work not for commission but for a margin of profit. These middlemen are tow types: 1. . Merchant Middleman: Are those who obtain title of goods to sell them at a profit. 2.Direct selling by manufacturer : It means supplying the products to the consumer directly without any intermediaries or middleman. Some mercantile middleman is wholesaler and retailer. Functional Middleman: Who performs marketing function with out having title of goods. Here the option available to manufacturer are to use own salesman.

Alternative marketing channel of distribution: Manufacturer Or Producer Manufacturer or Manufacturer Or Producer Manufacturer Or Poducer Producer Retail Wholesale Agents Retailer Wholesaler Retailer Consumer Consumer Consumer Consumer (Direct) (Direct) (Direct) (Direct) .

distribution channel decision is a key component of the marketing mix. motivation and support the dealer need. Channel decisions refers to the selection of best routes. paths. . Distribution Channel decisions often involve long-term commitment to other firms. The management must design its channel carefully with an eye on tomorrow because once a marketing channel is established it is difficult and costly to change it. A company channel decision is linked with every other marketing decision. for moving goods form product to consumer and it is to be carefully decided because : The cost involved in the use of channel enter the price that consumer has to pay. Whether a company develops or acquires certain new depend on how those products fit the capabilities of its channel members. The company‟s pricing depends upon whether is uses mass merchandise or high quality specialty stores.SELECTING AN APPROPRIATE CHANNEL : Marketing channel decision is among the most important decision that management faces. The channel decision also has a bearing on other marketing decisions linking pricing. product and pricing. The firm‟s force the advertising decisions depend on how much persuasion training. As distribution is often the least flexible element of the marketing mix.

the cost to be incurred and the benefit to be received etc. . Buying habits the consumer: While deciding the channel the company must make an expectation of the quantity to be purchased by the consumers.The selection of channel is generally governed by the following factors: The nature and type of product :The factor to be considered while deciding a channel are product‟s price. weight. after sale service. Middleman consideration:The Company must take into consideration the availability of the middleman. number of consumer etc. Cost involved in distribution:It is the most important factor that determines the marketing channel. standardization products. nature. Nature and extent of market: Areas to be considered are market size nature of the consumer (according to their use) location of the buyer. Existing channel for comparable products: While taking decisions about the marketing channel the channel operated by the competitors are also to be considered.

resources and the channel available to him after considering the above factor. . Minimum cost. Their marketing capabilities. Their growth prospects. The most preferable channel of distribution which will produce the combination of sales volume and costs that yields him the maximum amount of profit. In making a choice the manufacturer has to consider his objectives. Maximum promotional efforts. Criteria for evaluation of channel members: The task of manufacturer does not end after the channel has been decided. Family it may be concluded that a rational decision for marketing channels should ensure: Maximum geographical coverage of the market. The services performed by the various agencies are also to be evaluated or reviewed at frequent intervals. Competition faced by them.Manufacturer‟s considerations:The financial position of the company or the manufacturer and the volume of production also matter while deciding the marketing channel. The following criteria may be used for evaluation of channel members:Their sales performance. Their motivation to increase the volume of sales.

e. Service back up. Establishing the distribution system. Establishing objective:the objective should be started in terms of targeted service output level under competitive condition channel instruction should arrange their functional task to minimize channel costs with respect to desired level of service output. However channel produces 5 services outputs. . 4. Spatial convenience. Evaluate the major alternatives: . Waiting time. Product variety.CHANNEL DESGINING DEVISIOSN: While designing the channel the following steps need to be followed: 1. Lot size. Analyzing customers needs i. control.under the light of economic. service output levels desired by target customers. The number of intermediaries. adaptive criteria. 3. Terms and responsibilities of each channel members. Identifying the major channel alternatives: .a channel alternative is described by the following three items: Type of available business intermediaries. 2. 5.

Sorting out: . They help in reducing the cost of distribution. Agents: . The activities performed by the middleman. . SORTING: . They negotiated and expedite between the buyer and seller for commission.It is the process through which the supply of goods and services produced by the manufacturer is matched with the assortment demand by the consumer.Classifying the heterogeneous product.the intermediaries under this category do not purchase products and as such assumes no ownership of products.FUNCTIONS OF MIDDLEMAN OR INTERMIDIARIES:Market channel members are critical to the success of any market endeavor because they specialize in facilitating exchanges. b. Generally the channel members perform the following functions:- 1. under sorting are: a.It means combining small groups of similar products into large group of homogeneous products. c. Marketing intermediaries can be divided into two categories such as: Merchant: are the intermediaries who assume the ownership of products and resell them at a profit. Accumulation: . Allocation:-It means breaking down large homogeneous stock into small groups.

Middleman provides various services such as credit delivery return etc. NEGOTYATING: . 7. 5. BUYING: . TRANSPORTATION: . PROMOTING: . required to sell a product. 4. CARRYING INVENTORY: .Sometimes the channel members arrange for the transshipment of production. Assorting: .Middleman or channel members perform all the activities to market the product or to promote the product in the market.The channel member performs all those activities.Middleman provides the funds to cover the cost of the channel activities. MARKETING members also provides the information about the market 10.The middleman purchases a broad assortment of good from producer or the channel members for selling purposes. 3. 6. 2. .sometimes the channel member negotiates for the price fixation. 9. SELLING: .It is combining products into collection or it also refers to the assortment which satisfier the consumer demand. SERVICING: .The middleman assumes all the risks lies with the purchase of the inventory. FINANCING: . 8.d.

Neither have they born the risks arising out of the strikes. They do not take interest in increasing sales volume. Most of them just work as transfer agents. some manufacturer have started opening their known retail shop. Sometimes the services performed by the middleman are not up to satisfaction. disturbance. Sometimes it is also argued that the number of middleman is too high and they are nothing but parasites thriving at the expenses of the consumer. If would thus appear that some manufacturers are trying to . recession etc. During the period of shortage they concern supplies and dictate the price which customer has to pay or has to go without the product. As a step towards elimination of middleman.ROLE OF MIDDLEMAN IN INDIAN ECONOMY :WHOLESALERS Through the channel members are an important part of the organization and they perform certain various functions some complaints made against them are as follows:- It is very often contended that the charges a made by the middleman are much more than the due to them and that this is due to their effort to appropriate as much as possible out of the price paid by consumers.

risk sharing etc.5% to 7. Exclusive retailing. .perform the functions of wholesalers themselves and the target of their attack is the wholesaler but not retailers. They compensate themselves by taking higher margin on their products or by increasing their turnover. Out sourcing of channel arrangement / marketing logistics.5%. The Indian retailers are able to survive on low margin. RECENT TRENDS IN MARKET:In recent times firms have been taking to different kinds of non-traditional channel arrangement such as: a. They perform various functions such as finance. b. When there is keen competition retailers tend to undercut each other. due to his remarkable capacity for thrift. RETAILERS The federation of India Chamber of Commerce and Industry has pointed that retailer in India work on very low margins varying from 1.

Exclusive retailing:Many firms‟ have practicing exclusive retailing for the past several years.Out sourcing of channel arrangement / marketing logistics. retailers and are going in for exclusive retail and are going in for exclusive retail network. Exclusive retailing through showrooms. In recent years however the idea has proliferated fast. firms contract outside logistics specialists to operate as their marketing channels. In this kind. Franchising. More and more companies are now recognizing the adequacy of the traditional wholesaler. The different forms of exclusive retailing are as follows: Exclusive dealers without franchising arrangement. Complete out sourcing of channel arrangement is the most striking of nonconventional attempts. . Exclusive retailing through shop-in-shop.


K. First the raw material (Bamboo and Hardwood) are introduced in the Chipper Plant. The raw-material are come out in chips of different sizes.M. From the silos chips are introduced to the digester where chips are cooked by addition of chemicals.P.PRODUCTION SECTION AT JK PAPER MILLS PVT LTD PRODUCTION PROCESS: After the orders are been scrutinized the next stop of the process is to issue production letter containing the order‟s size. Then the pulp is sent to the stock preparation where it is refined and desired colors are added to the pulp. The following is the production Process of the J. screening is done to get the pulp. . specification etc. The production department now manufacturers the product as per the specifications by the sales department. bleaching. Here the chips are reduced to raw-pulp which is introduced into the blow tank where the washing. Then it is introduced into the paper machine to get different type of papers. The chips are graded into acceptable and unacceptable chips. The unacceptable chips are recycled back to the chipper plant and the acceptable\chips are stored in the silos.

FLOW DIAGRAM Raw-materials Chipping Digesting Screening Washing Bleaching Passed to paper machine Addition of Chemical Refined Pulp Screening .

G. K. modi Xerox Maplitho Paper Machine – IV Variety J. Copies.K.MACHINE WISE PRODUCTION : Paper Machine – I Variety Maplitho Pulp board Paper Machine – II Variety M. Posters / TDL Posters 29-90 Paper Machine – III Variety J. Bond Excel Bond Maplitho Wax match tissue 58 and above 70-80-90 54-70 44 75-80 90-100 GSM 80-160 180-285 .

K. being a producer of quality paper offcers variety of papers..K. K.P. The product mix of J. is as follows : VARIETY OF PAPER J. COPIES PULP BOARD SPARKEL COPIES JK COPIER PLUS JK EXCEL BOND SS MAPLITHO JK EVERVITE POSTERS JK BOND BUDGETED PRODUCTION 48176 7873 2043 613 1224 25598 3216 5373 1823 .M. Here in the machine itself the various products mixes are made.M. J.PRODUCT MIX OF JKPM : A product mix consists of all the product lines and items that a particular seller offers for sale.P.

It performs many sales task from attracing attention to describing the product to making better sale of the product. Reinforced plastic Fabric pieces used for Bundle packing. Laminated wrapping paper used for copies packing. Packing is required to protect the products form damages and to place the product in a right and sage condition. JKPM printed (or modi Xerox printged in case of goods going to the modi xerox company) then packets of 5 or more are agin packed in a cartoon according to the size of the cartoon. JKPM adopted the following method of packaging for safe delivery of the product. printing and packing paper are primarily packed by a wrapping apaper which is called reams. For other large size writing. Bop tape for cartoon packing.PACKAGING AT JK PAPER LTD. The number of sheets in a ream . PACKAGING MATERIAL :Wrapping paper use for Reams packing. PACKAGING :Packaging is the activities of designing and producing important tool. Plain HDPE cloth used for Reels and Bundle packing. For copier paper 500 sheets are packed by alaminated wrappin g paper. TYPES OF PACKING :The types of packing varies according to different variety. Cartoons used for packets of copier packing.

GSM Size of sheets Dae of packing Reels :Identification of the marks of mills Commodity name Variety name . Bundles. Automation system used for the packing of copier paper. Reels are packed by manually.may be 150/250/400/500. then number of reams are agin packed by a plastic fabric pieces which is called bundle. Commodity name. SUPPLY OF PACKING MATERIAL :Except wrapping paper all the other packing materials are supplied by outside agency on contract basis. reams are packed into a pallets made of wood. The information mart on reams and bundles : Identification of the mark of mills. But in case of goods going for export. MODE OF PACKING :For packing of paper both the system Manual and Automation are exist in the company. All the reams. Variety name. Then a ploythin cover round the paletts. In case of Reels they are packed by plain HDPE cloths. Wrapping paper are produced by the company itself.

Once the paper are ready after packing the next step is to plan for the dispatches as per the specification received at the time of receipts of orders.GSM Reels serial number Width. While planning for dispatches the most important decision is to be considered is the distribution channel. The dispatch planning can be for sale propose or for branch depots transfers. Distribution channel are the means and way by which the product moves from the producer to the consumer. . JKPM has a distribution net work employing 118 odd wholesaler and 5 consignment agents having numerous dealers and retailers under their fold. DISPATCHES :Creating a customer and creating a product do not complete the process of marketing. Delivering the product is an equally important part of the process. iomplementing and controlling the phgysical flow of goods and services from the points of origin to the points of consumption in order to satisfy the consumer at a profit. The physical distribution system is an important marketing devise which calls for planning. diameter Date of packing Gross weight Mark of industrial use. Since paper is a mass consumption item usually mass distribution strategy are employed in paper industry.

The company has more than 5000 retailer all over the country. Financial credibility. Direct consumer. Branch / depots Dealers Retailers Export Buyers WHOLESALER :A wholesaler is a trader who purchases goods in a large quantities and results to retailers in small quantities. 6. 1. Wholesaler are fully responsible for payment delivery to the company. Company has nothing to do with the retailer. Although the title of goods flow from JKPM to the dealers. 2. organization has the typical system of appointing wholesaler who are risk takers and have been vested with the responsibilities of developing dealers in their respective geographical domain and product line. The company has totally 118 numbers of odd wholesalers covering of the major cities in India. 5. Wholesaler Consignment agent. the order is to be executed through Branch Office. 4. . In the case when the wholesaler places their order through branch office. Organization market.Depending upon the purchasing pattern consumers are divided in to 5 categories. 7. They are appointed basic on their: Past business experience. Wholesaler generally places order through branch officer or in some cases directly to the mill on behalf of the retailer. 3.

he will supply the material to the retailer at 15% or 16%. However in case any consignment is not honored by the dealer for any reason whatsoever the wholesaler has to accept the material as a case in need buyer and take possession of the goods. . The wholesaler get the material at discount price form the retailer price and he sell it to the retailer at some fewer discounts. The function performance by the wholesaler is as follows:To develop dealers and institutional customers To meet the sales target Payment follow-up Implementation of promotional schemes Gathering feedback regarding competition. The Wholesaler raise indents in the name of the dealer identify by them and the consignment are billed on such dealers. Wholesaler deposit a security amount which is determined basing on the quantum of business product line dealt. Similarly wholesaler has to pay for any payment default made by dealer. In other words dalers take ownership and are liable to pay for the same . In a nutshell wholesaler occupies a pivotal position in the distribution system and is most influential in the marketing performance. A wholesaler has to pay 4% central sales tax which is adjustable with the ex-mill price.. E. if the wholesaler gets 20% discount of the retailer price.pricing etc.Distribution strategies for specific regions. Distribution strategy for products.g. He place the order on behalf of retailer and so if fully responsible for payment delivery of materials.

They will get 10% interest p. on his deposited security money.APPOINTMENT OF WHOLESALER:Appointment of wholesaler is totally look after by New Delhi head office. If the retailer closes the shop and absconded. Moreover they also get Trade Discount and some cases extra discount over the Ex-mill price. BENEFITS TO WHOLESALER:They get discount over Retail price.a. MODE OF PAYMENT:Wholesaler pay to the company through bank.8 lakhs as a security. If someone is selected as wholesaler he has to deposit Rs. As his business going expanded. They recruit area-wise wholesaler according to need. There is a risk of lossing money. . DRAWBACKS:Wholesaler has to supply paper on credit basis. For a long distance wholesaler high freight charge decease his profit margine. He will get maximum 30days credit facility form the company. his profit will be more.

Then he sells the stock to the wholesaler or direct to consumers and will be totally responsible for collection of . The extra discount offered in south zone is higher than the other because the market in south is wider than that of other zone. It is better to offer some extra incentives for high selling in particular period. Consignment agent survey the market in his are and idetified the potential demand.K.Suggestions:Branch Office should always maintained a good rapport with the wholesaler. Orders of wholesaler should be executed as early as possible. EXTRA DISCOUNT:Extra discount officering by the company on Ex-mill price varies wholesaler to wholesaler. The consignment agent will stock it in his godown. They deposit the sale proceeds with J. Where the company find a competitive and tough market they offer high extra discount for the wholesaler on the area. It is better if the representative from branch office visits wholesaler and sort out about their problems and complaints. Then he places an order for the material in the company manufacturer receives the order and despatches the same to the godown of Consignment Agent. Branch Office should keep the wholesaler about the develop metal programme of the mill. Consignment agent:They are the non title taking channel members who take the possession of consignment and sale them to dealers and retailer. and are remunerated basing on their performance by getting a pre-determined commission.

He will pay to the manufacturer only after the goods sold and he will receive his commission on the basis of his turn over. agency and their communication and incidental are as follows : City Commission Consignment Agent (in Rs. He will sell the paper to the wholesaler or direct consumer. He will be totally responsible for collectio of money of goods of goods sold. Ram Trading Comp. 1000 1500 1200 1200 1200 JOB OF A CONSIGNMENT AGENT :He will receive the material from JKPM according to his demand and will store in his godown. Palanippa & Comp. JKPM has 5 consignment agents in five cities of India. Name of the cities. He will responsible for sell of stock in his godown. Per tones) Pune Bangalore Kochi Vijayawada Hyderabad Noble Enterprises Transasia Palanippa & comp. The papers will be sent to the agent either by train or by the truck. .

market and decide about the recruitment or cancellation. New Delhi. This security will be deposited in favour of company. Benefit to Consignemtn Agent :He will get the goods at a discount price and retail price.APPOINTMENT METHOD OF CONSIGNMENT AGENT :The appointment mode of consignment agent lies with Head Office. Trade discount is deductible from the ex-mill price. Moreover he will get discount and extra discount. . They see the pontentialities of area. Instead party should have no contact with Head Office. REQUIREMENT TO RUN A CONSIGNMENT AGENCY:He should be a financially sound party. The price on which he get the material is called ex-mill price. He will get 10% interest per annum of the security deposited. If someone has selected as a consignment agent by Head Office he has to pay a security of 12 lakhs. He need some staff. He need a godown to store the papers. He can make the payment to the company only after his goods sold.

Because high freight charges decreases the profit margin of the wholesaler. Where the profit margin is high for consignment agent. He has to pay freight charges from the factory to his godown.Drawbacks:- The main drawback for consignment agent is that he has to collect money from the market and send to the company through bank. It is better to search for direct consumer party to rather than wholesaler. They may think for another option. So it is a rick-taking factor. So they cannot place a order of small quantity. SUGGESTION:The company has 4 consignment agent in South Zone and one in west zone. In case of any failure or payment from any wholesaler or consumer he will be totally responsible for the payment of materials. If any consignment agent nearest to them they can also place order for small quantity by paying a lower freight charges. So it is advisable to recruit one consignment agent in each north and east zone. Head Office should maintain a regular and good contacts with the consignment agent and ask them to provide feed back about the service of the company. . But there is no consignment agent in north zone and east zone.

BRANCH / DEPOTS:Company has certain offices to which the customer places their order for papers. Such types of papers are executed through the branch office. New Delhi Kolkata Chennai Mumbai Branches also distribute the paper product. The following are the four branches of JKPM . viz. . New Delhi Head Office is responsible strategy formulation to complete with the market. Branches are responsible for collecting order from the market and placing the sum to the company. They also look after the new product development and packing improvement.

Transit risk 6.The following is the comparative analysis of the various channel members of the company :- FACTORS Direct sale from Mill ------ 1. Cenvat benefit can be availed by a customer if required Initially born by mill Borne by mill Although the cost is subsequently recover-ed yet. consignment agent. to be born additionally Not applicable Applicable Borne by customer Borne by customer 5. Delivery lead time High Under Sales invoice. Cost 2. Freight Applicable (apart from the local tax) Applicable Sales through depots consignment agent Depots expenses consign-ment commission etc. Such as . Customer is not burdened to the fomalities for any claim. Low Initially through depots transfer challan subsequently through depots invoice wherein convent benefit can not be availed. Central Tax 4% 3. Documents needs So as the customer also benefitted from the direct purchase from mill because in case of depots / branches. 7. the consumer has to bear some additional charges. Central Excise duty and cess 4.

Since they are in direct contact with the retailer / end user. RETAILERS They are the second stage buyers who distribute the products to individual buyers / end-user. He is a specialist who maintain contacts with the consumer . They have this responsible to break the bulk and distribute the consignment among the identified retailers and end users. Hence their roles become a lot more important in pushing JK‟s product lines vis-à-vis competitors. Insurance from mill to depot. They are responsible for payment.Freight from mill to depots. They are at the fag end of the trading activities. Retailer is the link between wholesaler and consumer. SUGGESTION:Since the dealers deals with the competitors product also. Further dealers are not exclusive to JKPM and may deal with competitors products. the company is required to make sufficient provision to catch hold their attention towards its products. The company is required to have atleast minimum knowledge about their dealers. Depot incidental charges. They distribute the consignment among the identified retailers and end user. DEALERS:Dealers are the first stage buyers to whole the goods are despatched on the advice of wholesaler. They assume the roles of “eyes” and ears of the marketing network. They pick up the field level information about competitors which form an important portion in the marketing feedback analysis.

He buys from a variety of wholesaler. O. Direct Consumer purchase paper directly from the company for their own use.and the producer and is an important link in the mechanism of marketing. He packs the product in small containers for his customer.E.M. Diary retailer calendar manufacturers. Modi Xerox also supplying the packing materials to the company for their purchase product. (Original Equipment Manufacturer) Selling: JKPM also deals with direct consumer. a. Modi Xerox is a number one direct consumer also supplying. Note Book manufacturers. Units producing packaging materials. DIRECT CONSUMER:The following are the direct consumer of the JKPM. He stores the paper in his godown so that they are held as reserve stocks for future. The other direct consumer is Sudhir Paper Industries. He also pays an attention towards the advertisement of the product. Publishers. . Printers. The retailer perform the following tasks.

After receiving the despatch advice the procurement is been send to the overseas buyers from Chennai Port. CYPRUS. AUSTRALIA. SURIA. JK Copier JK Excel Finessee This is in an inception stage and more used as a promotional tool then an effective distribution channel in the metros. KENYA. GERMANY. UAE. GHANA. SRILANKA. TANZANIA. SPAIN. SUDAN. YAMEN. NETHERLAND. EXPORT BUYERS: Normally buyers from the outside countries place orders through Head Office. New Delhi. selected parties has to deposit a sum of money as a security in favour of company. MALAYASIA. The number of such parties are : 453. There are almost 20 to 25 countries who purchase paper product from the mill. The name of the countries who are often buyer of the company are as follows. JAPAN. UGANDA. JORDAN. Sales Through Interest: JKPM has a website through which product information can be gathered and free sample / orders can be placed in case of following branded items. JKPM export around 12% to 15% of the total production to other countries. . MORROCO. SINGAPORE. SOUTH AFRICA. EGYPT.b. NIGERIA. MALTA. BANGLADESH. MORITIOUS.

In the financial year Paper. of India. They worked for company on contract basis. There should be minimum amount in the bond at time of export. JKPM exports Metric Ton of JKPM exports Metric Ton of JKPM exports Metric Ton of JKPM exports Metric Ton of Requisite for export: A company before going for export must satisfying the following. In the financial year paper. Mode of Despatch : Except Bangladesh all the other export executed through Chennai port.Quantity of Export: In the financial year paper. In the financial year paper. The company gives them responsibilities for shipping arrangements. They arrange ship for . Minimum amount means an amount equals to that of expected amount to be realized from export. The consignment to be exported should be marked properly. The company must have signed a bond with the authorized person on behalf of Govt. There are some shipping agents in Chennai port.

New Delhi. And to avail this benefits the company have to produce the proof of export or a copy of Arel to the authority with whom the manufacturer or the company has signed the wise despatch. All the main functions of export are looked after by Head Office. to encourage export is unde the provision of DFRC. the shipping Bill. DFRC : Duty Free Replenishment Certificate. DEPB (Schemes of Govt. And all the documents are dealt by H. Under export. ) the import duty will be nil up to the value realized from the export. There is no question of delay payment. Benefits of export : The benefits provided by the Govt.O. DEPB: Duty Exemption Pass Book. Payment is very quick and clear in case of overseas party. The time period to avail the benefit by the government is limited up to a period of 6 months only. Mode of payment : Oversease party make the payment to the company through the Letter of credit. For Bangladesh all orders are executed through Kolkata. Bill of lading and the final invoice will be prepared by the customer. . of India.

Their criteria for evaluation are their performance. can sell them in local market. future prospects etc. market growth. In case the performance of the channel member are found to be non satisfactory the agreement made with them may be terminated before the tenure.125 for the number of days the consignment lays at port. And the other channel member will be evaluated by their suppliers. Evaluation of channel members: The performance of the various channel members are evaluated from time to time. so the evaluation of these channel member will be taken care by the company itself.Document used in export : Indent Latter of Credit Shipping Orders Dock Receipt Bill of Lading Insurance Policy Final Invoice Bond Account Arel In case when consignment can not be exported due to some reason and it lies in the port and can be realizable the company with prior approval of H.O. The company is directly linked with the wholesaler. but in such a case the company has to pay the tax @ 24% on the value on which the consignment will be sold + central tax @ 16. . consignment agent and branches / depots.

Physical Distribution and Logistics:
Since the paper is a mass consumption item and exhibits a commodity type behaviour. Physical distribution and logistics take most of the importance in the over all distribution strategy. It should function hand with the marketing efforts and complement it so that “right thing reach the right place at right time”. Since J.K. is having all India Marketing Network the task gets more complicated because of its location in remote place diverted from the trunk route. Physical distribution is studied covering the Transportation and Ware-housing & inventory. J.K. Paper Mills employs the following physical distribution system : 1. Mills – approved / nominated transport dealers. 2. Mills – approved transporters – depots – dealers. 3. Mills – approved transporters - consignment agent – dealers. 4. Mills – transporters godown at destination dealers. For Ex-mill sale J.K.‟s responsibilities ceases once the consignment is loaded in trucks (most preferred medium of transportation) . Then the consignment moves under the carriers / owner risk till it reached and delivered to the consignee. Transit risk is covered under insurance arranged by the wholesaler themselves or by mills the cost of which is recovered in the invoice. CST invoicing is prepared in case of inter state sale. Under CST Invoicing the company has to pay the excise @ 16.125% (16% - advolorum tax + .125 cess on production) in case of the utilization of waste material for production purpose, the excise duty is @ 8.125% (8+.125) and the sales tax @ 4% of Ex-mill price. OST Invoicing is prepared in case of intra sales. Under OST Invoicing the company is not required to pay the excise duty. The sales tax and additional taxes to be paid by the company are :

Entry tax @ cost 1% Surcharges @ 10% on OST

The company is also required to pay @ 500/- for cutting charges. The company is required to prepare the invoice under the following guidelines.

The invoices is to be maintained serially. The number should start with 14. It should be pre-authenticated by the authorized person. It should disclose the registration number. It should disclose the CEC number The numbr which are to be used for invoicing purpose is to be made known to the central excise officer. It should also disclose the name of the party, consignment number the quantity, the price etc.

1. Door Delivery
Consignment are door delivered to the dealers without providing the consignee copy of the lorry receipt which the transporter after the loading of the consignment. This approach mostly followed for wholesaler based in north, east ( only in Kolkata ) and West zone.

2. Self Delivery
Consignment are kept in the transporter godown and are delivered on production of the consignee copy of lorry receipt either by the original buyer or any subsequent endorse under endorsee E.I. Sale. This is the most preferred arrangement in south zone where the 1 stage buyer can transfer the consignment to the second buyer simply by endorsing the document and without paying the second point sales tax. However the



buyer always have the bonus of reselling it to 3 buyer and collect the local taxes


to ensure statutory compliance. Such transaction give the following advantages.


The first buyer need not bear the brunt of local levies on the entire consignment. They can break the bulk by effecting E.I. Sale among few buyers and pass on the bonds of collecting the local levies.


They need not pay the freight for the entire consignment since the freight is paid by the 2

buyer to the transporter for that much quantity sold to him.

Rest quantity lies with the transporter till they are released by another‟s but the goods should be cleared from the transporter‟s godown within 60 days else the transporter will claim damages as per their policies.

JKPM follows 3 modes of transportation for shifting of its products to its warehouse.

Rail Road Water (Pots)

For delivering goods to branch office consignment agent and wholesaler, company needs transportation facility. Trucks and rails are two way of transportation. Among these two the cost incurred by rail is less than the road transportation. But the process of railway is very lengthy. They take much more time to deliver goods to destination. On the other hand unless and there is a big quantity to export is meaningless to contact railway. So maximum wholesaler, consignment agent prefers the road transport by trucks.

The transport agreement between the mill and transporters are based on the following terms and conditions : The transporters will be allowed 24 hrs to place the indent trucks.The water way are used only for the export purpose. 4.A.5 lakhs retailer deposit of equipment amount in ash. . Execution of bank Guarantee worth 1. For induction as approved transporters the following criteria have to be fulfilled.B. ( if transporter deposit the security in Cash ) The transportation agreement apart from selling out the operatinal norms reflect a carrot and stick approach to ensure better services to out terms and conditions.00. The transporter have to deposit an amount of Rs.00. Since the road transportation is the most preferred mechanism for physical distribution any commission and commission on the part of the transporters will have fare reaching consequences. I. 4. Past experience with sister concerns. approval (Indian Banker Association) Network of Branches Infrastruture facilities at the transshipment points station. The transporters have to deposit an amount of Rs.a. Which the transporters will entitled to a interest @ of 8% p. Sound financial position. The deposit may be accepted in form of cash or in form of bank guarantee.000 as security. Hence JKPM identifies transporters and enters into formal agreement for ensuring performance guarantees and commitment.000 as security towards performance guarantee.

The transporters has to store the consignment till the delivery and the unloading charges will be paid by him. The transporters are required to prepare the “lorry receipt” on “to-pay” basis. All the consignment loaded in the truck will be covered with good quantity of tarpaulins to avoid any chance of danger in transit due to rain wate. . The transporters should have sufficient storage place. The product should be delivered from the transporters godown against the production of lorry receipt.The transporters will be allowed a discount @ 3% on the total freight. The negotiated rate are based on 9 MT truck load basis. The transporters have to arrange for the safe and timely deliver is goods within a period of 76 days and the maximum period allowed is 10 days. the calculation of diesel escalation will be : Present freight rate *30% (revised rate of diesel-present rate of diesel) / present rate of diesel = per ton increase. Delivery penalties are imposed for transit delay beyond the specific time frame and also quick deliver incentive are provided as per the following rates. In case of any decrease and increase of the rate of diesel.

Noble Enter Prices of Company.000 days from 16 days th For 21 days onwards JKPM has some selected number of road transporters. Savani Carrying Pvt. M/s. Ltd. M/s. 500 per day Subject to a maximum of Rs. Nutan Raj Road Lines. 10) M/s. 14) M/s. 13) M/s. But among the above transporters the first 7 are doing regular business with the company. Indian Road Lines. 300 per day Rs. M/s. New General Trading and Transport Corporation. 11) M/s. South Eastern Freight Carriers. 12) M/s. Transport corporation of India M/s. Modern Road Lines. Southern Road Lines. M/s. 10. M/s. 400 per day Rs.For the first 5 days from 11 days For the 2 st nd th Rs. Deepak Road Lines. . East India Limited. M/s. M/s. Balaji Road Ways of India. Savani Transport Limited. Name of these transporters are as follows :1) 2) 3) 4) 5) 6) 7) 8) 9) M/s. ABC India Limited.

at every quarter to ensure that it is as per prevailing market condition. Freight constitute a major component in the over all landing cost and of let customers have become discerning about this. Official visit to various transshipment points to collect the prevailing rates. Destinations although the freight is actually born by the customers. 1. Further since the consumers based at far of place don transporters have adequate idea about the local factors influencing the logistics. Movement of seasonal goods / corps are considered. 5. Following is the procedure is adopted for freight fixation. Freight is reviewed from time to time i. 4. 7.e. 3. Any cost escalation in case of price hike of diesel is also reviewed. Basing on the above factors freight is negotiated and finalized for a quarter and communicated to the respective zones. Quotation are invited from the different transporter. Feed back is obtained from our branch office. 2. 6. And customer . Hence JKPM taken over the responsibilities of negotiating the freight to different.Freight fixation for the transporters :JKPM is distributing it‟s product to nooks and corner of the country from remote locality. Availability fo trucks in the local market towards different destination is assessed. Basic rates charged by the local truck union to different destination are referred to.

made to pay reasonable amount by the transporters are justifiable remunerated. So extra incentives are provided for direct transportations. Improve the customer satisfaction. Evaluation of performance :Performance of transporters are periodically reviewed and they are given business as per the vendor rating given to them. The company is also providing extgra incentives for direct transportations is such case the transporters will enjoy some extra incentives as the products moves toward the destination point directly without any break. 3. If the goods are unloaded from one truck to another there is a possibility of damages to the goods. While doing so customer preferences are kept in mind. Occasionally visits to the transshipment point are paid to assess the infrastructure facilities required for safe and damage free delivery of consignment. Minimization of damages of finished goods. The hubs will also provide the following benefits: 1. . SUGGESTIONS:Containerization may be opted as a better option when the quantity or volume of production is too high and at the same time where the time and safety is of utmost important. The other option for transportation is creation of hubs to minimize the transit time. Better supervision of material 2.

This is to be maintained by the company as per the requirement of the central excise rules. The stock here refers to the finished production but not the raw-materials nor the work-in-progress. . The documents maintained with regard to the warehousing are: Stock Card / Bin Card. JKPM had 5 branches and 5 consignment agent and they hold stock with them. And the concerned the person is required to check the physical balance in had with that shown by the books of account and rectify the books of accounts. Receipt / Go down Check. The account book maintained with relation to the warehouse is known as “Stock Account”. Physical Verification of the stock. Company has its own warehouse. These stocking helps JKPM to deliver goods more quickly to customer. Stock account.Warehousing and inventory:Every company must store its goods while they wait to be sold. JKPM has the provision of verifying the stock at the end of each day. Whenever any stock is shifted to the warehouse it is to be recorded in the stock care or also called as bin card. Bin card shows the quantity received dispatched and balance in hand. The company must decide on the best number of stocking locations. Record in the bin cards are made lot wise or size wise.

The marketing department of JKPM at Delhi usually set the pricing policy. . THE PRICING STRATEGY:The price set by JKPM covers all the manufacturing and selling cost of paper plus fair rate of return. Cash discount. The warehouse must have sufficient fire fighting equipment. One of the important external factors that influence the pricing decision of the JKPM is competitor‟s price. Trade Discount: It is a discount allowed by the company on its Ex-mill price during the general trade process. The stock is needed to be properly placed in a proper order.The requirement for a warehouse is:- It should be properly located. The warehouse must be properly insured. Every customer is liable to avail this uniform discount. Sufficient storage apace. Additional discount. JKPM is operating a pure competition market. The price adjustment elements of JKPM are: Trade discount.

The additional discount varies zone wise. For advance cash payment cash @ 2. wholesaler‟s wise.Additional discount: JKPM also provide additional trade discount to its customer because of the competition in the market. market wise. Cash discount: A cash account is a price reduction to buyers who pay their bills promptly.5% is allowed. The additional discount is totally driven by the market. Who pay their bill in 10 days of getting the stock. Its give discount @ 2% to the parties. . substance wise.

5. The production process of the JKPM is very long. 7. JKPM also provides the Environment policy to the environment.FINDINGS 1. 2. JKPM is spending more money for the purpose of packaging. 3. JKPM also provides the Quality policy to the customers. 10. 4. 9. JKPM is importing the raw material from different distance places. 6. JKPM is employing the more number of security guard at the entrance of the gate. JKPM also provides TPM policy in industry. JKPM also provides safety and health policy to all employees. 8. .JKPM also provides the training and development to the new employees. JKPM also provides the procurement policy to the farmers.

if it is loaded using conveying system helps us in quick loading. The following order we can get…. Create market potential nearby places so that logistic expenditure will be reducing cost. If this method of transportation should carried out through containers by rail. 1. . 4. During rainy seasons they are complaints in finished product damage by water through road transport. Elimination of transition damages 2. Direct trucks should be used for the transportation to have a quick delivery of order and less damage. All machines should be made automated so that the work or assignment will finish in less time and less efforts. Logistic cost will reduce.SUGGESTIONS It is better to search for direct consumer party to rather than wholesaler where the profit margin is high for consignment agents. Safe transportation. Manufacturer----------Retailer-------------customer Administrative control should be converted in to engineering control for example asking 10 people to load the finished product on to the truckle for dispatching. First moving to the destination. JKPM should use the below mentioned distribution channel. 3. No damage while loading and creating safe working environment. Try to know the need of the customer and try to satisfy the customer.

Again it provides the good satisfaction to the customer and become leader in Indian paper industry. . long lasting and less cost. so the sales of JK product day after day going to increase. there for it may concluded that JKPM have a following good characteristic which mentioned above.CONCLUSION From the study conducted with the customer. At finally. it is understood that the customer looks mainly for these factors before selecting any paper. These are good quality.

tnpl.BIBLIOGRAPHY www.Philips Kotler www.C.Kothari. Marketing Research www.