Quality Control Department Of Balaji Wafers Marketing Essay

The company was started in the year 1976 by the Virani family. First they used to supply the wafers at Astron cinema in Rajkot. After getting success they set up a semi automatic plant which increased its sales. The company is producing 2 types of products i.e.wafers and namkeen.

Balaji Wafers Private Limited is a medium scale company producing wafers and namkeens. The company has a good brand name in Gujarat, Maharashtra, Madhya Pradesh, Goa and Rajasthan. It has 90% market share of wafers and 70%market share of namkeens in Gujarat.

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The unit is located at Vajdi, Kalawad road, Rajkot. The company has another plant at Valsad.

PRODUCTION DEPARTMENT

PRODUCTION TECHNOLOGY:

In a fully automatic plant like Balaji all the aspects of manufacturing are carried on by computers, operated by few men. Balaji Wafers Private Limited has fully automatic plant with latest machineries. Benefits of economies of scale, standardised products, speedy production and fewer accidents are achieved.

PRODUCTION PROCESS:

The important aspect of any company is its production process In BALAJI WAFERS PVT. LTD., production process is a well – planned process. In contains all that important stages, which is required to make a product well, accepted in the market. Layout is as follows:

Raw material–washing–peeling–inspection–cutting–washing–frying–inspection–adding spices–dispatch

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QUALITY CONTROL:

Quality control department of BALAJI WAFERS checks the quality of the goods with the help of equipments. This department checks the quality of raw material and finished products. Not only this, it also checked the quality of the product at each stage of the production.

INVENTORY MANAGEMENT:

The company has a systematic inventory control. For inventory, it uses First In First Out (FIFO) method. They dispatch the finish products as soon as they are produced. Company does not hold inventory for more than 2 days including raw material and finish products.

PERSONNEL DEPARTMENT

SELECTION AND RECRUITMENT:

In BALAJI WAFERS, they recruit staff member through advertisement in highly circulated news paper. They are not using any employment exchange or employment agencies for recruitment. Selection committee member select candidates by interview. After the candidate is selected, the company gives him appointment letter that when he has to join the company.

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WAGES AND SALARY:

The remuneration is paid to each and every worker not on the monthly basis but on daily basis. On the other hand salaries to other staff members are paid monthly. These wages and salaries are according to government norms. Employee also receives bonus and gifts on special occasion or at festivals.

PERFORMANCE APPRAISAL SYSTEM:

Performance Appraisal is a process of evaluating an employee’s performance of a job in terms of its results. In ‘Balaji Wafers Pvt. Ltd.’ the supervisor sees the employees ability that they work properly and efficiently, whether he understands, his responsibilities or not, how his behaviour towards his colleague etc.

TRAINING AND DEVELOPMENT:

The company gives continues training to new employee but they don’t give training to old employee. Training is given to the employee to make them aware as how to operate machines, how to do the work very effectively and in given time limit, etc. The main aim of training is to develop leadership quality and responsibility, and work can be carried out in most efficient manner and also very smoothly.

MARKETING DEPARTMENT

PRODUCT POLICY:

The product policy and strategy is the cornerstone of marketing mix. In Balaji Wafers Pvt. Ltd. following steps are followed in product planning.

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Market price and sale price

Demand of particular commodity

Cost of production

Necessity and aim of company

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PRICING POLICY:

The company’s pricing policy is cost + profit. Whatever expenses have incurred during the manufacturing of the product is considered plus profit is also included. Competitor’s prices are also considered. Through this they try to reduce their cost of production.

DISTRIBUTION CHANNEL:

The company has very strong distribution channel. It has distributor named “Kataria” that ensures to supply fresh product in any corner of Gujarat 24 hours. Hence the availability of Balaji’s product is very large.

COMPETITOR:

As Balaji Wafers Pvt. Ltd. has very wide marketing area it is but obvious that it will also have some competitors in this field. The main competitors are as follows.

Main competitors:-

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Lays, Atop, Kukure, Gopal Namkeen, Uncle chips, Haldirams Namkeen

CONCEPTUAL FRAMEWORK OF RESEARCH

BACKGROUND OF THE TOPIC

Definition of Retailer:

One who sells goods and commodities directly to the consumers. These items are purchased from the manufacturer or wholesaler and sells to the end user at the market price. He is also known as merchant.

Retailing consists of the sales of goods or merchandise from the fixed location in small or individual lots for direct consumption by the purchaser. There are no restriction on how and where the retailer start his business. He has full freedom of doing the business he wants to do which is a biggest advantage. Retailing includes all the activities involved in selling goods and services directly to final consumers for personal, non-business use.

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The purpose of conducting the retail survey is to determine the relationship with the retailers. Knowledge of retailer satisfaction and attitudes about an organization’s business will greatly enhance its opportunity to make better business decisions. The organisation will try to make better relations with them by fulfilling their expectations

PROBLEM STATEMENT:

It is extremely crucial to know the retailer satisfaction level towards the products of Balaji Wafers Private Limited. We need to know that how many retailers sell the product of Balaji? Which other brand product do they sell? Are they satisfied with the distribution system? Are dealers providing services which they need? Do they want any promotion efforts?

Through the analysis, interpretation and findings from this study these issues can be solved.

RATIONALE OF THE STUDY

Organisation is made up of people and without people organisation does not exists. The resources by themselves cannot fulfil the objectives of the organisation. The resources need to unite into the team.

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The main need of the study is to determine the impact of retailers’ satisfaction at every place in marketing management. If the retailers are satisfied with services of the firm they can provide useful information to the company and act as a bridge between end users and manufacturer.

Thus we can say that the research on retailers’ satisfaction will prove beneficial to the Balaji Wafers Private Limited. This study will give information about the expectations of the retailers and fulfil those requirements. All this will lead to a great success for the company.

REVIEW OF EXISTING LITERATURE

(A) Commitment-trust theory of Relationship Marketing

Findings: (1) Relationship marketing means establishing, developing, and maintaining successful relations with retailers and dealers. (2) It plays a major role in marketing theory and practice. The authors find out that successful relationship marketing requires relationship commitment and trust; and the model of commitment and trust is a key mediating variables. Robert M. Morgan and Shelby D. Hunt (July-1994) Publisher: American Marketing Association

(B) Market orientation, trust and satisfaction in dyadic relationship: a manufacturer-retailer analysis

Findings: (1) It studies the relationship between manufacturer’s behaviour and the distributors’ and retailers’ trust and satisfaction with it. It analysis the effect of trust their satisfaction level. (2) Three alternative models of relationships between trust and satisfaction are compared. (3) The article presents the study of Spanish ceramic industry. It shows that the effect of trust on satisfaction depends on which dimension is considered. Enrique Bigne and Andreau Blesa (2003) Publisher: MCB UP Ltd

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(C) Determinants of supplier-retailer collaboration

Findings: (1) This study aims to understand the factors influencing supplier-retailer collaborations. (2) A comprehensive supplier-retailer relationship model is developed: supplier-retailer business relationship affects long-term orientation; supplier-retailer business relationship affects supply chain architecture; long-term orientation affects supply chain architecture; supply chain architecture affects the level of supplier-retailer collaboration; and supplier-retailer collaboration enhances supplier-retailer performance. Chwen Sheu and Bongsug Chae (2006) Publisher: Emerald Group Publishing Limited

[D] Consumer shopping value, satisfaction and loyalty in discount retailing

Findings: (1) Few researchers have conducted comprehensive examinations of the relationships between consumer shopping value, satisfaction and loyalty in retailing. (2)Further, the majority of extant research has been limited to upscale retail sectors where the role of the salesperson is crucial and long-term relationships are common. (3)In order to extend the findings of previous research to additional retail sectors, the current study investigates the complex interrelationships between utilitarian and hedonic shopping value and important retail outcomes for discount retailers. Jason M. Carpenter (September-2008)

HYPOTHESIS

H0: The research proves that retailers are satisfied

H1: The research proves that retailers are not satisfied

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OBJECTIVES OF THE STUDY

The objectives of the retailer survey are as follows:

To study current scenario of Wafer market and Namkeen market

To find out the services provided by dealers

To know about timely delivery of goods by dealers

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To know the satisfaction level of the retailers

To find out the scope of new product

To find out awareness of the products

RESEARCH METHODOLOGY

SCOPE AND POPULATION

Scope of the study shows the area and fields covered under the study. In my research work I had covered all the retail outlets of the Rajkot City. It includes the following:

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General Stores

Dairy Farm

Pan Shops

Grocery Shops

Population of the study means the number respondents approached in the research work. I had approached 200 retail outlets for filling up the questionnaires. The areas covered are as follows:

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Area

No. of Retailers

University road

32

Raiya road

41

Kalawad road

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27

Sadhu vasvani road

18

Laxmi nagar road

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14

Yagnik road

8

Amin marg

15

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Nirmala convent road

10

Mavdi road

8

150 feet ring road

12

Other

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SIGNIFICANCE OF THE STUDY

This study will be significant in promoting good work environment in the workplace and motivation of its retailers. This study will also be beneficial to the students and instructors in retail management. It will be also helpful to the retail management, marketing management and overall company’s objectives and strategies.

It will also serve as future reference for researchers on the subject of marketing and brand development. And importantly, this research will educate clients in deciding on whether a company is really fulfilling its responsibility to the retailers and other intermediaries or not.

DATA COLLECTION METHOD

There are two types of data:

Primary Data

Secondary Data

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In my research work I had used only primary data. Primary data is to be collected to know the retailers’ preferences and belief. A combination of Questionnaire techniques and discussions with the respondents are used to collect the required Primary data. Findings of the primary data focus on the retailers of the Balaji Wafers. Primary data gives higher accuracy and facts, which is very helpful for any research.

I had collected data from the grocery shops, dairy farm, pan shops and general stores with the help of questionnaires.

SAMPLING DESIGN

This Research is more related to descriptive type because the retailer’s knowledge, beliefs and satisfaction of services can be judge through this type of research.

 

No particular statistical technique was used to determine sample size for the research work. Large samples give more reliable results than small samples. So I decided to collect the data from the 200 respondents.

Sampling procedure:

For the survey of the retailers the responses had recorded by giving the questionnaire to them and provide them all the information about the purpose so that they can give true information.

In this study of retailers, the sample size is 200 and the type of sampling is quota sampling because out of 200 retailers each retail shops are taken who are selling the products of Balaji into equal proportion which is given below:

General stores

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Pan Shops

Grocery Shops

Dairy Farm

TOOLS AND TECHNIQUES

Data Collection tool:

For the descriptive types of research the tools for collecting the data is questionnaire method. The questionnaire includes both types of questions i.e. close ended and open ended questions. In my questionnaire I had used both types of questions.

Data Analysis Tool:

The data collected from the sample by various method need to be analysed. There are various tools and techniques for research study which helps in analysing and interpreting the data collected I had used the Spreadsheet for analysis and interpretation of the data collected from the questionnaire. Spreadsheets are widely used because they are relatively easy to learn, and can help the user do quick and simple data analysis.

LIMITATIONS OF THE STUDY

Following are the limitations of the research study:

The research is done only in limited area.

Some retailers provide biased information.

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It is difficult to predict the satisfaction level of Retailers because there are many retail outlets in Rajkot.

Some retailers has given incomplete information.

Some respondents refused to fill up the questionnaire.

DATA ANALYSIS AND INTERPRETATION

The data collected through the questionnaire are scanned and analyzed. The analysis and interpretation of data is very important in any research work. After analysis and interpretation the findings and recommendations can be provided to the company. Therefore it has a greater importance in the whole study.

Let us analyze and interpret one by one data.

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Q-1: Are you selling Balaji’s Product?

Interpretation:

From 200 retailers, 06 are not selling Balaji product. The reasons are as follows:

Few retail shops are remotely located, so a dealer is not able to provide necessary services.

The other reason is that some retailers have less requirement so sales executives don’t visit them.

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Dealer has very large area to cover. So sometimes it is difficult to satisfy all the retailers.

Q-2: Which products are being sold at your retail outlet?

According to the retailers most of the customers prefer the following products which are sold in large quantity from their shop.

Potato masala wafers

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Chat Chaska wafers

Simply Salted wafers

Tomato wafers

Banana masala wafers

Banana mari wafers

Faradi Chevdo

Aloo Sev

Chataka Pataka (masala)

Wheelos

Products which are sold not very frequently are:

Masala peas

Shing bhujia

Masala shing

Ratlami Sev

Gathiya

Khatta mitha mix

Tikha mitha mix

Chataka pataka (tangy tomato)

Products which sold very less are:

Lemon chatka

Chinese chatka

Khakhras

These products are sold very less because people are not aware about it. Another reason is that the retailers are not having these products in their stock as they are also not informed about it.

Q-3: Are you satisfied with the distribution system of “Balaji”?

Interpretation:

All the retailers are satisfied with the distribution system as the whole distribution system is managed by “Kataria”. Within 24 hours it supplies the product of Balaji at any corner in Gujarat.

Q-4: Does the dealer give necessary services?

Interpretation:

Retailers are satisfied with the services from the dealers. This shows that Balaji Wafers has strong relations with all its channel intermediaries.

Q-5: How many times in a week dealer gives you services?

Interpretation:

The above chart shows that 91% of retailer gets 2 times service from the retailer. This is because there is large consumption of Balaji products and as such it is necessary to get 2 times deliveries in a week.

Q-6: Did you face delay in receiving the products of “Balaji”?

Proportion test:

p = 0.90, q = 0.10 and n = 200

S.E. = pq/n = 0.021

Limit = [p – 3(S.E.)]*100 to [p + 3(S.E)]*100

= 83.70% to 96.30%

Interpretation:

The above chart shows that only 10.21% of retailer are dissatisfied and are getting delay in receiving the products as they are located in remote areas.

Q-7: Do you provide the information to the company about the loyal consumers and their purchases?

Proportion test:

p = 0.39, q = 0.61 and n = 200

S.E. = pq/n = 0.034

Limit = [p – 3(S.E.)]*100 to [p + 3(S.E)]*100

= 28.80% to 49.20%

Interpretation:

As retailers are in face to face contact with the customers they can provide such valuable information. 38.89% of retailers provide the information about loyal customers.

Q-8: Are you selling other then the products of “Balaji”?

Proportion test:

p = 0.58, q = 0.42 and n = 200

S.E. = pq/n = 0.035

Limit = [p – 3(S.E.)]*100 to [p + 3(S.E)]*100

= 47.50% to 68.50%

Interpretation:

If yes, then other brands are:

Lays, Uncle Chips, Gopal Namkeen, Parle, Atop, Real, Aliva, Bingo, Haldirams Namkeen, Everest and Kurkure.

The retailers sell other brands as they want to provide different type of variety of product to the customers in order to increase their earnings.

Q-9: Do you expect any promotion efforts from the company?

Proportion test:

p = 0.63, q = 0.37 and n = 200

S.E. = pq/n = 0.034

Limit = [p – 3(S.E.)]*100 to [p + 3(S.E)]*100

= 52.80% to 73.20%

Interpretation:

The above chart shows that 36.88% of retailers need promotion benefits. They want trade discount, certain percentage of commission, stand for keeping the products at display and benefits during festivals.

Q-10: People accept “Balaji’s” product according to which criteria?

Interpretation:

The above chart shows that majority of people accept the product due to taste and availability. Almost 35.88% is attracted by taste and 27.77% is attracted by availability. Thus we can say that taste is the main strength for the company.

Q-11: Do you think Balaji is competitive enough with other available products?

Interpretation:

All the retailer believe that Balaji is competitive enough. The company is having almost 90% market share of wafers and 70% of namkeens. This shows that it has ability to stand in completion.

Q-12: Should Balaji introduce new product in market?

Proportion test:

p = 0.34, q = 0.66 and n = 200

S.E. = pq/n = 0.033

Limit = [p – 3(S.E.)]*100 to [p + 3(S.E)]*100

= 24.10% to 43.90%

Interpretation:

The above chart shows that 33.59% of retailer says that Balaji should introduce new product as customer choices and preferences are changing very rapidly. Hence company must try to widen its offerings so that customer will not change the brand.

Q-13: What suggestion would you like to give to company?

Following suggestions are given by the retailers:

Replacement of the product

Introduce different flavors of Wheelos

Shortage of products during festivals

Increase the quantity of wafers

Unaware about new product such as lemon chatka, Chinese chatka and khakhras

SUMMARY

It was a nice experience to conduct the research study of retailer satisfaction. From the study I came to know that the company has a strong distribution network. There are good relations with the distributor and dealers.

The main reason for the better availability of Balaji’s product is because of the services of its distributor “Kataria”. Its services are highly efficient as it could supply the product within 24 hours in any corner of the Gujarat. So, better availability can be the competitive advantage for the company.

The study shows that the retailers are satisfied with the company. Therefore we accept the null hypothesis as the research proves that retailers are satisfied.

So, I conclude that the company is efficient and effective in its business and is having a good brand name.

FINDINGS

Following are the findings of my research work:

According to the retailer Balaji is competitive enough

Retailers have complaint about fewer profit margin

Retailers are unaware about certain products such as Lemon chatka, Chinese chatka and Khakhras

Customers are also unaware of these products so the sales is also less

There is shortage of products during festivals because of fluctuation in supply

Retailers also need stand for the display of the Balaji products

RECOMMENDATIONS

I would like to give following recommendations to the company:

The company should advertise about the new products to make awareness to the retailer and consumers

The company must increase the profit margin of the retailers in order to satisfy them

Balaji Wafers should give the stands free of cost to the retailer to keep their products in the shop

The company must do some promotional efforts for the retailer by giving discount

Balaji Wafers should increase the quantity of wafers

There must be replacement of product as most of the retailer has given suggestions

The company should increase the supply of aloo sev and masala shing

Balaji Wafers can introduce new flavours in Wheelos

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