Marketing strategy of vegetable distribution system

Marketing strategy of veggie distribution governing bodyThis search paper examines the overall merchandise strategy of a consumer harvest of veggie distribution scheme. More specifically, this theater of operations addresses the grocerying strategy of capital of Sri Lanka district. This paper bequeath deeply fail the force of the vegetable distribution corpse and node ecstasy on that and withal the winner and distress of the system. The research will carry out by manner of self completed enquirenaire to report the households attitudes on vegetable distribution system and awargonness on that. Other than households responses, an interview will carry out data will analyzed by giving high concentration to the prevailing practical situations and thereby the conclusions will carry on.In the current modern universe merchandising touches all of us every twenty-four hour period of our lives. This marketing system facilitates the traditional exchange systems and also p rovide us high standard of lifetime consists of numerous a(prenominal) large and ingestcast companies, where all flavour for success. Therefore to emphasize the signifi flowerpotce of marketing in this bring out era is important. The specific research study is also based on the marketing aspect, which is analyzing the vegetable distribution system in a specific ara. This paper especially analyzes the current distribution 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 this study I can find the cost rough-and-readyness in this study and also I can find out the success or failure on the distribution system. So that it will help to find the solution for the problem it means we can find the grounds for the failure so it will help to find the solution for the failure and we can recommend the best strategy.1.2 Background of the get hold of1.2.1 Vegetable statistica l distribution trunk in Sri LankaThe conservative Vegetable dissemination system in Sri Lanka is having High public sector involvement, Markets were stagnate and less dynamic, Low or no processing (no prise addition), High price instability Long supply cooking stoves with little integrating, High wastage, Low accountability in the system, Large number of supply chain partners, operating independently, High market uncertainties at both producer consumer ends. The Emergence of a new demand and responsive supply Chain increases the competition the reason for the Changes Includes Rapidly growing urban population, rising income levels, changing socio-cultural environment, Changing taste and preferences, Explosive growth in nurture/communication capacity, High level of coordination/ integration of stakeholders and melody orientation in the marketing system.1.2.2 Vegetable Distribution System in capital of Sri LankaFor Vegetables to r each(prenominal) the Colombo consumer it must pa ss through many hands and often through a number of channels. Several participants ar involved in a variety of marketing, negotiation and organizational systems. Each of these participants has their take need for infrastructure, helpers and legislative and regulatory support. The Main Comp atomic number 53nts of vegetable Distribution Systems in Colombo district is vegetable comes into cities utilizing a variety of transport modes such as head loads, hand and animal drawn carts, clarified vehicles, large trucks, trains, and river and seagoing vessels. All these modes need to be accommodated in terms of facilities and access. Then vegetable is usually distributed to one or a number of in allsale markets. Other thing is from the wholesale markets the vegetable is distributed to a variety of retail outlets such as retail regimen markets, local food shops, and modern supermarkets. It can be seen in the avocation diagram.FarmerTransporting AgentCommission agent at the Colombo wh olesaleRetailerWholesalerConsumer(Fig 1.1)1.3 Objectives of the StudyObjectives of this Investigation are,To evaluate the transaction effectiveness of the Retail Shop (in terms of customer satisfaction, Reasonable Price, Freshness and feeling carrefour availability, Located in convenience Place, method of collecting information and transferring)To discover the cost effectiveness in Distributing Vegetables.To identify the reasons for success and failure of performance of Distribution system.Identifying (Marketing Strategies) Solutions for the problems identified during the investigation.1.4 Research QuestionMy research question is the Empirical Study on Vegetable Distribution System in around Colombo Metropolitan Area. I select this topic because Im very much interested in marketing state. This study will give the knowledge of the current vegetable distribution system in Colombo and how effective this system for the consumer. In Sri Lanka vegetable is a principal(prenominal) fo od use in the day to day life. It has the high demand comparing to the otherwise fruit. So it is important to know the system of vegetable distribution. Sri Lanka is a developing sphere many people are not affordable to buy high price merchandises but it is not the issue in Sri Lanka but also most of the country. concourse are looking for high quality product with lower price. Effective distribution system can provide the people high quality product with low price. Distribution system means how the product make on hand(predicate) for the people. It is very much important to know about the marketing channel because various channels used to distribute the product to the consumer. Vegetable are transformed from the farmer to wholesaler and wholesaler to retailer and retailer to consumer. It is important for the marketing channel how ability to support the vegetables quickly to the consumer with the lower cost.The city of Colombo in Sri Lanka does not endure dedicated wholesale markets for products with the existing three markets for grains, fruits and vegetables and fish conducting both wholesale and retail trading. Although originally recognized as wholesale markets the incorporation of retail actions due to in suitable planning of retail markets has meant that the markets are now highly congested and the whole area around and inside the markets is severely affected by traffic congestion during the morning hours. Buyers frequently spend over two hours in the market to purchase. Maintenance of greatly used facilities is difficult and the inadequate drainage has resulted in flooding and damage to road surfaces. Sri Lanka has an international trade deficit in vegetables, primarily because of high imports of onion and chilies from India. The country could save much foreign exchange by encouraging domestic return of vegetables. For this, however, a systematic effort would be required to identify the vegetables most suited for production in Sri Lanka, and to identify barriers limiting their cultivation. More transport facilities will be needed for bringing production to wholesale areas and then to retail markets. This movement will result an increasing traffic congestion and pollution. Higher transportation costs, a main component 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 customer in that particular area. I need to identify the customer perception on the available distribution system. Whether, customer satisfied through this system. If the particular 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 Distributio n 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 based are clearly understood. It is especially emphasis on basics of marketing, distribution system etc. which are significant for this study.2.1 Marketing agree to American Marketing Association (2007) Marketing is an organizational function and a set of process for creating, communicating and delivering value to customer and for managing customer relationships in shipway that benefit the organization and its stakeholders.2.1.1 Activities 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 areDesigning the product to design a product we need to do a market research. Through that we can identify the customer needs and wants according to the cus tomer desires we can design 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 capture 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 StrategyA marketing strategy identifies customer groups which a business can serve considerably than its target competitors. Providing tailors product offerings, prices, distribution, promotional efforts, and services 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 focus on the target markets it can serve best. By analyzing the product portfolio and customer segment, treasure distribution channel we can generate our own customer strategy ( Angele, 2000).2.1.3 Marketing PlanWhen we developed a marketing strategy, it is written down 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 before write a marketing plan. The marketing strategy is to understand and match the capabilities of business opportwholeies available in the market. So we need to collect 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 have limited resources to spend on marketing. Concentrating their efforts on one or a few key market segments gives the most return from small investments. We should select 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 i s by and large 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 goals we need to have a strategy. The marketing mix elements help to determine the strategy (Gummesson, 2002). The marketing mix elements arePlaceProductPriceProcessPromotionMarketing MixPeoplePhysical evidence(Fig 2.1)PriceIn marketing selecting the price is one of the strategies. We need to identify the cost of production and other cost to determine the price. Right price will maximize the profit.PromotionIt 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 attractive way. Like special packing etc.PlaceIt is the way of distributing the product to the customer.PeoplePeople in the market cannot be underestimated. Peopl e have the direct 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 discourse sales process and after-sale service it help to achieve marketing strategy.Physical EvidenceShowing the tangible product to the customer is giving the chance 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. Through that we can evaluate the current marketing strategy (Clarity Marketing, 2005).2.2 Distribution SystemInitially it is necessary to consider 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. Ea ch of the elements in these chains will have their own specific needs. The Distribution system is also clear- recognize as a set of interdependent organizations involved in making a product or service available to consumers or industrial users. Usually a number of different institutions are involved in a distribution contrast because such distinction 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, regular 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 activity, Channel members satisfaction etc. The cost of selling and distributing is becoming high due to high transport charges wa ges and commissions etc. But 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 channelsConsumerManufacturer1RetailerConsumerManufacturerWholesalerRetailerConsumerManufacturerWholesalermiddlemanRetailerConsumerManufacturer(Fig 3.1)In the figure first one is called a direct-marketing 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 musical 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 fighting 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 link between production and consumption. Organizations form any particular distribution channel. So that they can overcomes the major(ip) 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 environment needed for planning and aiding exchange.Promotion Developing and spreading persuasive communications about an offer.Contact Finding and communicating with prospective buyers.Matching cause and fitting the offer to the buyers needs, including such activities as manufacturing, grading, assembling and packaging.Negotiation Reaching an agreement on price and other terms of the offer so that will power or possess ion can be transferred.Physical Distribution Transporting and storing GoodsFinancing Acquiring and using funds to cover the costs of the channel work.Risk pickings 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 splendor of Channel MembersMany producers lack of financial services to carry out direct marketing these direct marketing would require many producers to bend middlemen for the in order to achieve mass-distribution 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 use of middlemen or a retailer is to transform the assortment of products made by producers into the assortments wanted 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, noble 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 slews 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 desired 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 found that as in many European countries, the food retailing industry 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 used 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 t he 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 founding 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 merchandisers concentrate mainly on assessing the potential marketable performance of the various manufacturers. In terminate 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 recommend ation to the policymaker to cleanse the efficiency of market distribution system. He analyzed the success, failure and challenges of urban food market in Accra. He also emphasis the market purify 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 the objectives of the research problem. According to that the Descriptive research method will be used 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 beingness conducted primarily to improve the understanding of general issues in distributing vegetables. And also secondary data such a s 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 secondary 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 good deal 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 open ended question and closed ended question will include.The whole Colombo Metropolitan area is defined as the universe for this study, and the sampling unit is basically the vegetable consumers of that area. The Sampling Frame that is the source list from which the savor 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 representative sample from the sampling frame the sampling unit which is vegetable consuming case-by-cases especially the home makers. The consumers above age of 25 are included 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 being included in the sample.3.3 Analysis of the Empirical DataThe Data will be code and analyzed by using statistical software program, and also the data will be analyzed using analytical 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 results of this research. This research methodology follows the research onion.FPowerpointpe_ukPE083-SaundersFinal_FilesGifch04C04NF001.gif(Sources Mark, 2006)(Fig 4.1)3.4 Significance of the StudyCompetition between retailers has increased 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 cu stomers 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 effectiveness for the consumer.3.5 Limitation of the StudyBeing an individual assignment, the effort exerted in to this study will be limited. Specially 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.ConclusionI can conclud e 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 OBJECTIVETo 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. sex activity Female3 Date of Birth 3rd June 19834 Nationality Sri Lankan5. Married / Single Single6. Sch ool Attended St.Annes Girls Maha Vidyalaya Colombo -13.ACADEMIC QUALIFICATIONSDoing Post ammonium alum Diploma in Management Studies at Icon College, London. B.Com (Special) DegreeUniversity of Sri JayewardenepuraGangodawila, Nugegoda.General Pass G.C.E A/L Examination (2002) Accounting A, Economics A, Business Studies A.G.C.E O/L Examination (1999)5 Distinctions include Mathematics (111), Religion, Tamil and Science (1). 5 Credits including Science (11), Commerce, Social, Arts and EnglishPROFESSIONAL QUALIFICATION figurer 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 agency Ltd (Shipping Company) as an accounts trainee for 1 year.(Book Keeping)I h ave worked at Peoples Bank Dam passageway 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 furnished by me are true and accurate to the best of my knowledge.Yours faithfullyL.J. Shakthivel