Marketing strategy of vegetable distribution system

trade scheme of veg distri deliver the goodsdion musical arrangementThis look into paper examines the over exclusively commercializeing strategy of a consumer growth of veggie scattering transcription. More ill-tempered(prenominal)ally, this utilization up addresses the merchandising strategy of capital of Sri Lanka district. This paper entrust deeply analyze the soundness of the vegetable distri andion system and client rejoicing on that and in addition the winner and distress of the system. The seek leave behind carry come forth by bearing of self fill ind questionnaire to hear the households attitudes on vegetable dispersion system and aw atomic b prohibited 18ness on that. Other than households responses, an interview lead carry out info lead analyzed by giving steep slow-wittedness to the prevailing practical situations and thereby the conclusions forget carry on.In the actual modern world marting touches all of us every mean solar day of o ur lives. This loting system facilitates the traditional exchange systems and also put forward us high standard of living consists of some(prenominal) stupendous and low-toned companies, where all looking for winner. therefrom to emphasize the signifi lavatoryce of market in this drive home era is outstanding. The unique(predicate) research study is also base on the merchandising aspect, which is analyzing the vegetable distrisolelyion system in a precise atomic number 18a. This paper especially analyzes the current diffusion system in capital of Sri Lanka district using the relevant theory and current news. Also I am interested in evaluating guest satisfaction on that system. through with(predicate) this study I flag the bounce find the apostrophize effectiveness in this study and also I substructure find out the success or failure on the statistical distribution system. So that it leave alone sponsor to find the solution for the problem it means we stooge f ind the priming for the failure so it will help to find the solution for the failure and we plunder recommend the crush strategy.1.2 Background of the Study1.2.1 Vegetable distribution System in Sri LankaThe conservative Vegetable scattering system in Sri Lanka is having High public sector involvement, Markets were stagnate and less high-voltage, Low or no processing (no value addition), High terms inst susceptibility large tot compasss with little integration, High wastage, Low account competency in the system, Large number of add together chain partners, operating independently, High market uncertainties at two producer consumer ends. The Emergence of a new take aim and responsive supply Chain increases the competition the reason for the Changes Includes Rapidly ontogenesis urban population, rising income levels, changing socio-cultural environment, Changing taste and preferences, Explosive growing in information/communication capacity, High level of coordination/ i ntegration of stakeholders and military control orientation in the marketing system.1.2.2 Vegetable Distribution System in capital of Sri LankaFor Vegetables to rack up the capital of Sri Lanka consumer it must pass through m some(prenominal) turn over and often through a number of channel. Several participants argon involved in a innovation of marketing, negotiation and organizational systems. to each one of these participants has their own command for infrastructure, services and legislative and regulatory support. The master(prenominal) Components of vegetable Distribution Systems in capital of Sri Lanka district is vegetable comes into cities utilizing a variety of transport modes such as head loads, hand and animal wasted carts, modest vehicles, large trucks, trains, and river and seagoing vessels. All these modes take to be accommodated in terms of facilities and access. Then vegetable is usually distributed to one or a number of completesale markets. Other thing i s from the wholesale markets the vegetable is distributed to a variety of sell matters such as retail food markets, topical anesthetic food shops, and modern supermarkets. It washstand be seen in the Following diagram. granger channeling AgentCommission agent at the capital of Sri Lanka wholesale retail merchantWholesalerConsumer(Fig 1.1)1.3 Objectives of the StudyObjectives of this Investigation are,To evaluate the consummation effectiveness of the retail Shop (in terms of node satisfaction, savvyable Price, Freshness and Quality output availability, Located in convenience Place, method of consumeing information and transferring)To perk the cost effectiveness in Distributing Vegetables.To tell the reasons for success and failure of performance of Distribution system.Identifying ( market Strategies) Solutions for the problems identified during the investigation.1.4 Research QuestionMy research question is the experimental Study on Vegetable Distribution System in near C olombo Metropolitan Area. I hire this topic because Im very often interested in marketing demesne. This study will give the companionship of the current vegetable distribution system in Colombo and how effective this system for the consumer. In Sri Lanka vegetable is a chief(prenominal) food utilize in the day to day life. It has the high demand comparing to the new(prenominal) resultion. So it is chief(prenominal) to k forthwith the system of vegetable distribution. Sri Lanka is a ontogenesis country many people are not affordable to deal high price carrefours but it is not the issue in Sri Lanka but also most of the country. People are looking for high choice produce with lower price. Effective distribution system can provide the people high quality product with low price. Distribution system means how the product make available for the people. It is very much important to know just round the marketing channel because sundry(a) channels apply to distribute the pro duct to the consumer. Vegetable are transformed from the farmer to contact and wholesaler to retailer and retailer to consumer. It is important for the marketing channel how ability to deliver the vegetables quickly to the consumer with the lower cost.The city of Colombo in Sri Lanka does not dupe dedicated wholesale markets for products with the existing three markets for grains, fruits and vegetables and fish conducting twain wholesale and retail trading. Although originally recognized as wholesale markets the incorporation of retail actions due to in seemly planning of retail markets has meant that the markets are now highly congested and the whole theater of operations around and inside the markets is in earnest affected by traffic congestion during the morning hours. Buyers frequently surpass over two hours in the market to purchase. Maintenance of greatly employ facilities is difficult and the inadequate drainage has resulted in flooding and damage to pass surfaces. S ri Lanka has an international trade deficit in vegetables, mainly because of high imports of onion plant and chilies from India. The country could save much foreign exchange by further domestic fruit of vegetables. For this, however, a systematic effort would be take to signalise the vegetables most suited for business in Sri Lanka, and to identify barriers close their cultivation. More transport facilities will be needed for bringing production to wholesale areas and then(prenominal) to retail markets. This movement will result an increase traffic congestion and pollution. Higher transportation costs, a main gene of food prices, will contribute to increasing food prices for the metropolitan poor.I am interested to identify how effective the distribution system for vegetable in Colombo area currently. How they are satisfying the node in that token area. I need to identify the node perception on the available distribution system. Whether, customer satisfied through this sy stem. If the peculiar(prenominal) distribution system satisfies the customer or if it is very efficient and effective I can find the reason how it is effective and the strategy of the system. If not we need discover the reason for the failure of the distribution system on that particular area. My hypothesis for the research isHo Vegetable Distribution System in Colombo is Effective.H1 Vegetable Distribution System in Colombo is not Effective.CHAPTER 2 LITTERATURE REVIEWIt is highly important that the theoretical aspects on which the study is ground are clearly understood. It is especially emphasis on basic principle of marketing, distribution system etc. which are significant for this study.2.1 Marketing concord to American Marketing Association (2007) Marketing is an organizational function and a peck of process for creating, communicating and delivering value to customer and for managing customer relationships in ways that realise the organization and its stakeholders.2.1.1 A ctivities Included in MarketingMarketing activities are various and it also varied because they fundamentally include everything need to deliver the product into the customers hands. The marketing activities are foundinging the product to objective a product we need to do a market research. through and through that we can identify the customer needs and wants harmonise to the customer desires we can devise the product.Promoting the product how we are going to introduce the product to the market. It includes advertising, marketing communications etc.Setting a price it is important to see the market producing in low cost will give high profit. People expect high quality product with lower price if we satisfy them only we can survive in the market. (Mary, no date).2.1.2 Marketing schemaA marketing strategy identifies customer groups which a business can serve well than its target competitors. Providing tailors product offerings, prices, distribution, promotional efforts, and se rvices toward those market segments to capture the market. Preferably, the strategy should address customer needs that offer adequate potential profitability. A good strategy helps a business to localize on the target markets it can serve best. By analyzing the product portfolio and customer segment, assess distribution channel we can generate our own customer strategy (Angele, 2000).2.1.3 Marketing PlanWhen we developed a marketing strategy, it is scripted see as a marketing plan. The plan frequently go further than the strategy, it includes detail such as budgets. We need to develop a marketing strategy originally write a marketing plan. The marketing strategy is to understand and match the capabilities of business opportunities available in the market. So we need to heap up more information regarding that such as data about the market ( size, growth, Potential customer), Competitive data ( Direct competitors, product and price of competitive product) (Matt, 2010).2.1.4 Target MarketOwners of small businesses usually make up curb resources to spend on marketing. Concentrating their efforts on one or a few underlying market segments gives the most return from small investments. We should accept to whom we are going to market. Target marketing method is help to reach the customer efficiently. (Chelle, 1994). It is also no agreed that health of the company is mostly depends on Customer behavior and attitude needs. (Margret, 1985).2.1.5 The Marketing MixMarketing mix is a choice of the organizations to bring a product or service to market. In order to achieve marketing destinations we need to micturate a strategy. The marketing mix elements help to determine the strategy (Gummesson, 2002). The marketing mix elements arePlaceProductPriceProcess forward motionMarketing MixPeople sensual evidence(Fig 2.1)PriceIn marketing selecting the price is one of the strategies. We need to identify the cost of production and separate cost to determine the price. Ri ght price will maximize the profit. progressionIt is the way to introduce the product to the market. It includes advertisement.ProductProduct strategy may include developing a highly specialized product and high quality product to the customer in a photogenic way. Like special packing etc.PlaceIt is the way of distributing the product to the customer.PeoplePeople in the market cannot be underestimated. People have the say impact on the product perceived. People are the important element in the marketing because products are for the people. (Mind Tools 1994).ProcessIt is the manner of intervention sales process and after-sale service it help to achieve marketing strategy.Physical EvidenceShowing the tangible product to the customer is giving the guess to the customer to make a decision. Customers like to know about the product through the smell and touching. Offering free trial or advertisements are physical evidence.The marketing mix model helps to decide how to take a new offer to the market. by that we can evaluate the current marketing strategy (Clarity Marketing, 2005).2.2 Distribution SystemInitially it is necessary to forecast about what is Distribution system. Frequently there may be a chain of intermediaries each passing the product down the chain to the next level, before it finally reaches the consumer. This process is known as the distribution chain or the channel. Each of the elements in these chains will have their own specific needs. The Distribution system is also clear-cut as a set of interdependent organizations involved in making a product or service available to consumers or industrial users. Usually a number of divers(prenominal) institutions are involved in a distribution behave because such specialization increases the efficiency by marketing activities are performed.The Main thing is to select the distribution aspect is that marketing of a product highly depend on its distribution efficiency, even the best Quality, Brand, Price, Promotion will not be successful if the product wouldnt reach the consumer hands by utilizing a good distribution system. Therefore the distribution systems are very important where the channel management leads to attain the product availability, cost effectiveness, Promotional legal action, strain members satisfaction etc. The cost of selling and distributing is bonny high due to high transport charges wages and commissions etc. alone the benefits are not sure that it is achievable, so it is important to achieve the maximized benefit and minimized cost through good distribution systems.Companies can design their distribution channels to make products and services available to customers in different ways. The figure below shows some examples of channel levels for consumer marketing channelsConsumerManufacturer1 retail merchantConsumerManufacturerWholesalerretailerConsumerManufacturerWholesalerJobberRetailerConsumerManufacturer(Fig 3.1)In the figure first one is called a direct-m arketing channel, since it has no intermediary levels. In this case the manufacturer sells directly to customers. An example of a direct marketing channel would be a factory outlet store. Many holiday companies also market direct to consumers. The remaining channels are indirect-marketing channels. Second one is contains one intermediary. In consumer markets, this is usually a retailer. The consumer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony, Panasonic, Canon etc. They sell their goods directly to large retailers such as Comet, Dixons and Currys which then sell the goods to the final consumers. Third one is contains two intermediary levels a wholesaler and a retailer. A wholesaler typically buys and stores large quantities of several producers goods and then breaks into the bulk deliveries to supply retailers with smaller quantities. For small retailers with limited order quantities, the use of wholesalers makes economic sense. This arrangement tends to work best where the retail channel is fragmented i.e. not dominated by a small number of large, powerful retailers who have an incentive to cut out the wholesaler. A good example of this channel arrangement in the UK is the distribution of drugs.Distribution is important because it affects the sale of the product. It also affects the competitiveness as well as profit because the margin is squeezed by distribution cost. Delivery is the part of activity that influencing the customer satisfaction (MMC learning no date).2.2.1 Functions of a Distribution ChannelThe main function of a distribution channel is to provide a interrelate between production and consumption. Organizations form any particular distribution channel. So that they can overcomes the major problems. Members of the Marketing channel perform many key functionsInformation Gathering and distributing marketing research and intelligence information about actors and forces in the marketing environ ment needed for planning and aiding exchange.Promotion underdeveloped and spreading persuasive communications about an offer.Contact Finding and communicating with prospective buyers.Matching Shaping and fitting the offer to the buyers needs, including such activities as manufacturing, grading, assembling and packaging.Negotiation Reaching an agreement on price and new(prenominal) terms of the offer so that ownership or possession can be transferred.Physical Distribution Transporting and storing GoodsFinancing Acquiring and using cash in hand to cover the costs of the channel work.Risk Taking Assuming the risks of carrying out the channel workThe first five functions help to complete transactions the last three help fulfill the completed transactions.2.2.2 Importance of Channel MembersMany producers lack of financial services to carry out direct marketing these direct marketing would require many producers to become middlemen for the in order to achieve softwood-distribu tion economies.The use of retailer or middlemen largely boils down to their greater efficiency in making goods available to target markets. Through their contacts, experience, specialization and scale of operation, middlemen usually offer the firm more than it can achieve on its own.From the economic systems point of view the role of middlemen or a retailer is to transform the assortment of products made by producers into the assortments precious by consumers, Producers make narrow assortment of products in large quantities, but consumer want broad assortments of products in small quantities. In the distribution channels, middlemen but the large quantities of many producers and break them down into the smaller quantities and broader assortments wanted by consumers. Thus middlemen play an important role in matching supply and demand.2.2.3 Goals of Logistics SystemSome companies state their logistics objective as providing maximum customer service at the least cost. Unfortunately, no logistics system can both maximize customer service and minimize distribution costs. Maximum customer service state that fast delivery, large inventories, flexible assortments, liberal returns policies, and other services. All those activities are raising distribution cost. In contrast, minimum distribution costs imply slower delivery, smaller inventories, and larger shipping very much which represent a lower level of overall customer service.The goal of marketing logistics should be to provide a service to targeted level of customer at the lower cost. A company must first research the importance of various distribution services to customers and then set craved service levels for each segment. The objective is to maximize profits. Therefore, the company must consider the benefits of providing high quality of product and services against the costs. (Kotler and Amstrong 1992) .2.3 Related Research FindingsIt has undercoat that as in many European countries, the food retailing inte ntness in France is dominating powerful companies. The research aimed at examining the idea that small producers are limited or even totally lacking in the supplier portfolios of bunch merchandisers in France. The common principles utilize by the retailers to select manufacturers are summarized. It has discussed using evidence from ten companies. Choosing a supplier is a critical step in a distribution firms buying process. It is a influential factor not only in the firms competitiveness but also in its corporate image. In the French food distribution channel, manufacturers products advertise directly to customers but sells to retailers. Retailers prefer to purchase from the suppliers who capable of intro large advertising. These are seem to be the required conditions for the retailer to sell large quantities of products to consumer. As a result the supplier incurs extra cos. Since the ability to assurance stock yield depends on marketing resources and skills, French mass merchand isers concentrate mainly on assessing the potential marketable performance of the various manufacturers. In conclude that because they do not spend much on sales promotion programs small producers find difficulties in competing with larger producers in making sales in the distribution channel (Gilles, 1996).Natilia (2010) states that how the food supply and distribution systems took place in Accra, Ghana compare to Colombia. His study also made some recommendation to the policymaker to improve the efficiency of market distribution system. He analyzed the success, failure and challenges of urban food market in Accra. He also emphasis the market reform strategies on his research.Ross (1995) states that according to his research on marketing strategy he found the dynamic of appliance retail business also he estimated major customer decision making criteria.CHAPTER 3 METHODOLOGY OF THE STUDY3.1 Research DesignThe most suitable research method is determined by the research problem and th e objectives of the research problem. According to that the Descriptive research method will be utilise to perform the research study, since the research problem is based on evaluating the performance of a Retailer in distributing Vegetables around Colombo Metropolitan. And also it is a kind of a basic research because it is existence conducted primarily to improve the understanding of general issues in distributing vegetables. And also alternative data such as journal articles will be used. The Reason for selecting Descriptive Research method is because it describes the phenomenon as they exist and also used to identify certain information on the Characteristic of a particular Situation or problem.The study will be conducted as a qualitative study by using primary and collateral data.3.2 data Collection Techniques. (Methods Tools)The type of data will be used for this specific study is mainly primary data. The Study is based on the Colombo Metropolitan. Therefore the primary data for the research will be collect within the Colombo Metropolitan region. Secondary data will used to analyze the relationship between the customer satisfaction and the sales pile of the vegetable. It is a qualitative research The Data will be collect from consumers. Data will be collected by Personal Interviews with the retailer and Questionnaires are distributed to consumers of that specific area. A questionnaire will be developed with questions based on the customers perception on Vegetables. Under interviewing people both the fall in ended question and closed ended question will include.The whole Colombo Metropolitan area is defined as the universe for this study, and the consume unit is basically the vegetable consumers of that area. The Sampling Frame that is the source heed from which the sample may be drawn is set with in the Colombo metropolitan. The size of the sample is 100 vegetable consumers. The non Probability technique will be applied in order to obtain a de puty sample from the sampling frame the sampling unit which is vegetable go through individuals especially the home makers. The consumers above age of 25 are include in the sample, because according to the research topic these consumers will be the best sample to achieve the efficiency and reliability. The sample does not afford any basis for estimating the probability that each item in the population has of cosmos included in the sample.3.3 Analysis of the Empirical DataThe Data will be code and analyzed by using statistical software package program, and also the data will be analyzed using analytic techniques such as mean, mode and averages. Appropriate graphs and charts will be use to interpret and present data in this study. Since the ordinal Measurement will indicate the relative position of two or more objects it will be used in this investigation to rank the Customer satisfaction factors and other factors. Using the information from the questionnaire can conclude the resu lts of this research. This research methodological analysis follows the research onion.FPowerpointpe_ukPE083-SaundersFinal_FilesGifch04C04NF001.gif(Sources Mark, 2006)(Fig 4.1)3.4 Significance of the StudyCompetition between retailers has change magnitude due to new super markets operation in the surrounding area and also due to Economical Condition of the country including Cost of living, inflation, Transport cost etc. Factors which is affect the firms profitability and to meet the customers expectation and satisfaction. Therefore it is important to analyze the problems faced by the retailer in distributing vegetables and give him a solution for the problems.The significance of this research is to identify whether the retailer can meet the customer expectation and satisfy them continuously and also to identify the exact problems prevailing during the research period how the distribution system effecting and then providing solutions, analyzing the cost benefits or cost effectivenes s for the consumer.3.5 Limitation of the Study world an individual assignment, the effort exerted in to this study will be limited. particularly in selecting of the sample it is very difficult to take a complete representative sample as the population is high.The significant lack of secondary data specially in competitors data will be a major limitation to analyze dataBecause of the qualitative research it will very much time consuming.Financial limitation also there. shoemakers lastI can conclude that by conducting this research I can improve my knowledge in the distribution system on Colombo area. It will help me to apply these findings in other area too. I can identify the distribution system in a particular area and how effective that system also how that distribution system provide the customer satisfaction. Through this study I also can identify the success and failure of the distribution in a particular area and I can find the reason for that. It will help me to identify and recommend the solution for the existing problems.CURRICULAM -VITAE OFL.J.Shakthivel12, Longford GardensHayes.UB4 OJWE-mail emailprotectedContact No.07574957290CAREER documentalTo become an individual who possess a wider knowledge and ability on things what she does and uses it for the enhancement of the work place and the society.PERSONAL PROFILE1. Name in Full Lenita Jency Shakthivel2. Gender Female3 Date of Birth tertiary June 19834 Nationality Sri Lankan5. Married / Single Single6. School Attended St.Annes Girls Maha Vidyalaya Colombo -13.ACADEMIC QUALIFICATIONSDoing situation Graduate Diploma in Management Studies at Icon College, London. B.Com (Special) DegreeUniversity of Sri JayewardenepuraGangodawila, Nugegoda.General Pass G.C.E A/L exam (2002) Accounting A, Economics A, Business Studies A.G.C.E O/L Examination (1999)5 Distinctions include Mathematics (111), Religion, Tamil and scholarship (1). 5 Credits including Science (11), Commerce, Social, Arts and sidePR OFESSIONAL QUALIFICATION Computer LiteracyCompleted MS Office Completed DIPLOMA IN ENGLISH at Nalravi English Language Centre.Studied SAGE Accounting PackageFollowing Post graduate Diploma in Management Studies in London.EXTRA AND CO-CURRICULAR ACTIVITIES Secured Places in athletic meets Secured Place in Essay Competition Served as a Games Captain. Participated in English Speech.EXPERIENCEI have worked at Belcon substance Ltd (Shipping Company) as an accounts trainee for 1 course of instruction.(Book Keeping)I have worked at Peoples Bank impede Street for 1 year under the internship program.(Customer Serve and Cheque Clearings)I have worked as an Assistant Accountant at SPS Enterprises for 1 year(Book Keeping and Customer serve)I hereby affirm that the above particulars fitted out(p) by me are true and accurate to the best of my knowledge.Yours faithfullyL.J. Shakthivel