A STUDY OF THE EFFECTIVENESS OF

DISTRIBUTION CHANNEL OF NIRAPARA

CHAPTER

INTRODUCTION

INTRODUCTION
The world of business is changing very fast. Therefore the
theoretical

knowledge alone will not fulfill the needs of business school

students. As a management student it is very important to know the activities

of any business and also should be know about his specialized area. In view
of this fact the scheme of our MBA course provide an opportunity to expose
the student to an industry and its operational condition.
The topic of the study is effectiveness of distribution channel of

NIRAPARA to identify a preference of Nirapara Rice products with

respect to its competitors. This study is conducted to find the effectiveness
of distribution channel of the product. The effectiveness of distribution
channel study will help the company in taking decisions regarding the
promotional campaigns, advertisement strategies and positioning strategies
to build more brand distribution strategy among the consumers to compete
with big giants in FMCG industry. The task of this study is to deliver a
central idea about the company and the offering to the target market. The
company discovers different needs and groups in the market place and
introduces the product which satisfies these needs. This study helps to find
the targets of those needs and groups that it can satisfy in a superior way or
not. It is also helpful to find the position of offering, whether the target
recognizes the distinctive offering and image. The product should be
positioned well and the end result of it is the successful creation of a
customer focused value proposition.
.

OBJECTIVES OF STUDY
PRIMARY OBJECTIVE
To analyze the effectiveness of Brand to create a preference of
Nirapara products with respect to its competitor.
SECONDARY OBJECTIVE

To understand the role of effectiveness of distribution channel on sales

of Nirapara rice products.
To identify the competition from the market.
To provide suggestions to improve effectiveness of distribution
channel.
RATIONALE OF STUDY
The study is about effectiveness of distribution channel to create a
preference of Nirapara rice products with respect to its competitor. The
ethics and effectiveness of effectiveness of distribution channel is highly
controversial subject. Measuring of effectiveness of distribution channel
possess many challenging questions to those who create, sell and utilize
distribution channel. It is a widely accepted fact that distribution is a great
force linking the product and consumers.

LIMITATIONS

 Due to lack of time the area of study limited to PATHANAMTHITTA

District.
The validity of result depending on information given by respondents.
The universe was very large.

CHAPTER

REVIEW OF LITERATURE

LITERATURE REVIEW

Channel of Distribution
Means used to transfer merchandise from the manufacturer to the end user.
Intermediaries in the channel are called middlemen. Those who actually take title to
the merchandise and resell the goods are merchant middlemen. Those who act as
Broker but do not take title are agent middlemen. Merchant middlemen include
wholesalers

and

retailers.

Agent

middlemen

include

Manufacturer's

Representatives, brokers, and sales agents.

Whether these exchange processes occur between manufacturers and their
suppliers, retailers and consumers, or in some other buyer-seller relationship,
marketing channels offer an important way to build competitive advantages in
today's global marketplace. This is so for two major reasons:

Distribution strategy lies at the core of all successful market entry and
expansion strategies. The globalization of manufacturing and marketing
requires the development of exchange relationships to govern the movement
of goods and services.

New technologies are creating real-time (parallel) information exchange and

reducing cycle times and inventories. Take as an example Dell Computer,
which produces on-command, customized computers to satisfy individual
customer preferences. At the same time, Dell is able to align its need for
material inputs (such as chips) with customer demand for its computers. Dell
uses just-in-time production capabilities. Internet-based organizations now

compete vigorously with traditional suppliers, manufacturers, wholesalers,

and retailers.
Marketing channels always emerge from the demands of a marketplace. However,
markets and their needs are always changing. It's true, then, that marketing
channels operate in a state of continuous evolution and transformation. Channels of
distribution must constantly adapt in response to changes in the global marketplace.
This new selling orientation inspired the development of new intermediaries as
manufacturers sought new ways to expand market coverage to an increasingly
mobile population. The selling orientation required that more intimate access be
established to a now more diversified marketplace. In response, wholesale and retail
intermediaries evolved to reach consumers living in rural areas, newly emerging
suburbs and densely populated urban centers.
Relationship marketing is driven by two principles having particular relevance to
marketing channel strategy:

Long-term, ongoing relationships between channel members are costeffective. (Attracting new customers costs more than ten times more than
retaining existing customers.)

The interactive dialogue between providers and users of goods and services is
based on mutual trust.

The Role of Intermediaries

This progression from a production to a relationship orientation allowed many new
channel intermediaries to emerge because they created new customer values.
Intermediaries provide many utilities to customers.
. Two principal tasks associated with the sorting function:

Categorizing. At some point in every channel, large amounts of heterogeneous

supplies have to be converted into smaller homogeneous categories.

Breaking bulk. Producers want to produce in bulk quantities. Thus, it is

necessary for intermediaries to break homogeneous lots into smaller units.

The role intermediaries play in building customer confidence is their most

overlooked function. Several types of risks are associated with exchanges in
channels of distribution, including need uncertainty, market uncertainty, and
transaction uncertainty. Intermediaries create value by reducing these risks.

CHAPTER 3
RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge.
One can also define research as scientific search for potential information on
a specific topic.
HYPOTHESIS
A hypothesis generally means a mere assumption or supposition to be
proved or disproved. A researcher conducting this research has to start
somewhere. This point of start is called hypothesis. In developing
hypothesis, the first task is to set up two statements. The first one is null
hypothesis and the second one is the alternative hypothesis. +ve attitude
is denoted by H0 and ve attitude is denoted by H1.
H0- DISTRIBUTION CHANEL and Satisfaction level of NIRAPARA
rice products is independent.
H1- DISTRIBUTION CHANEL and Satisfaction level of NIRAPARA
rice products is dependent.
RESEARCH DESIGN
In this research, the researcher used descriptive research design.
Descriptive research is used to obtain information concerning the
Effectiveness of DISTRIBUTION CHANEL to create a preference of
Nirapara products with respect to its competitor. The methods adopted

include personal interviews, observation and the use of a research instrument

i.e. a structured questionnaire.

DATA COLLECTION METHODS

Methodology is the way and design to conduct the study. An
important aspect of methodology is data collection. There are two types of
data:
PRIMARY DATA
SECONDARY DATA

PRIMARY DATA
1. Questionnaire: - the questionnaire is the medium for obtaining
information by a list of well framed questions deemed to be answered by
the respondents.

SECONDARY DATA
1. Company manuals
2. Journals
3. Magazines
4. Internet

SAMPLING DESIGN
A sample design refers to the technique or procedure which the
researcher would adopt in selecting same sampling units from the population
for drawing inferences about the population. If proper procedure is followed
to select the sample, definitely the sample will give all dependable
information. Due to the lack of time constraint it is difficult to consider the
overall population with respect to the study. Therefore, we select a sample
from the population and makes studies about the population by studying
these samples.
Sampling is necessary for reasons of feasibility. Samples can increase
accuracy. Methods of selecting samples are random sampling, stratified
random sampling, systematic random sampling, cluster sampling etc.
Random sampling is the process of drawing a sample from a population in
such a way that each member of the population has an equal chance of being
selected sample. For the present study, convenience sampling technique is
used.

POPULATION
Population or universe is the aggregate of all units possessing certain
characteristics on which the sample seeks to draw inferences. Population of
the study is outlets of Nirapara products around 420.

SIMPLE RANDOM SAMPLING

This type of sampling is also known as probability sampling, where
each and every item in the population has an equal chance of inclusion. This
sampling has been used because, the population is infinite.
Researcher made the research in PATHANAMTHITTA and the
population is infinite. This is the population on which the researcher has to
make research. But it is not possible to do a census inquiring method
because of time limitations. So sampling method is used for making the
study.
SAMPLE SIZE
In this study sample size chosen is 100.
SAMPLING PROCEDURE
Sample size was selected using simple random sampling method.
CONDUCTING METHOD
Questionnaire was based as a research instrument whiles this
data. Questionnaire is the most common instrument in collecting primary
data. It consists of a set of questions presented to customers for the answers.

PRESENTATION OF DATA
Simple percentage sampling method was used for analysis of data.
Table, bar diagram and Pie Chart was used to present the data.
VARIABLES UNDER STUDY
THERE ARE TWO TYPES OF VARIABLES:
DEPENDENT VARIABLE
INDEPENDENT VARIABLE
DEPENDENT VARIABLE
EFFECTIVENES OF DISTRIBUTION CHANEL and saLES to
create a preference of Nirapara rice products with respect to its
competitor.
INDEPENDENT VARIABLE
Quality of Product
Brand Image
Price
Customer Satisfaction
Availability
Offer

 Past Experience
Media

CHAPTER

INDUSTRY AND COMPANY PROFILE

INTRODUCTION TO INDUSTRY PROFILE

FMCG has a long history however the Indian FMCG
industry began to take shape only during the last fifty year. Today the Indian
FMCG industry continues to suffer from a definitional dilemma. In fact the
industry is yet to crystallize. Interims of definition and market size, among
other the FMCG sector is a corner tone of the Indian economy. This sector,
can drive growth, enhance quality of life create jobs and support penetration
of technology.
The Indian FMCG industry was also witnessing significant change
through the 1990s. Many leading FMCG players such as India Ltd. have
been facing several problems on account of increased competition from
sellers and regional players and from slow growth across its various product
categories. As a result, many of these companies were forced to recoup their
product, marketing, distribution and customer service strategies to
strengthen their position in the market.
The realization of the customer growing awareness and the need to
meet changing requirements and preferences, on account of changing
lifecycle also contributed to the formation of customer strategies.

TYPICAL CHARACTERSTICS OF FMCG PRODUCTS

Individual products are of small value. But all FMCG products put
together account for a significant part of the consumers budget.
The consumer keeps limited inventory of these products and prefers to
purchase them frequently as and when required.
Many of these products are perishable.
The consumer spends little time on the purchase decision. Rarely does
he/she look for technical specifications (in contrast to industrial
goods).
Brand loyalties or recommendations of reliable retailer, dealers help to
arrive purchase decision.
Trial of a new product i.e. Brand.
The FMCG sector also received a boost by government led initiatives
in the 2003 budget such as the seating upon of excise of free zone in
various parts of the country that witnessed firm moving away from
outstanding the manufacturing by investing in the zone.
FUTURE STATUS OF THE INDUSTRY

Assoc Ham has indicated that FMCG industry will face challenges.
Prices are expected to have impact on profits like never before. The FMCG
sector which was beginning to diversely affected to as the FMCG as it did
not exceed 1.5% of growth rate in the part four years began to witness a
solve revival in 2015.

INTRODUCTION TO THE INDUSTRY

Rice Industry
Rice is a grain belonging to the grass family. It is related to other grass
plants such as wheat, oats and Barley which produce grain for food and are
known as cereals. Rice refers to two species (Oryzasativa, Andoryza
Glaberrima) of grass, native to tropical and sub tropical southeastern Asia
and to Africa, which together provide more than one fifth of the calories
consumed by humans. The plant, which needs both warmth and moisture to
grow, measures 2-6 feet tall and has long, flat pointed leaves and stalk
bearing flowers which produce the grain known as rice. Rice is rich in
genetic diversity, which thousands of varieties grown through out the world.
Throughout history rice has been one of mans most important foods. Today,
this unique grain helps to sustain two-thirds of the worlds population. It is
life to thousands of millions of people. It is deeply embedded in the cultural
heritage of their societies. About four fifths of the worlds rice are produces
by small scale farmers and are consumed locally. Rice cultivation is the
principal activity and source of income for about 100 million houses holds in
Asia and Africa.

Some important facts about rice in India scenarios areas:The potential to export is the main source of income for families in
India. Farms cover over-half land and almost three-quarters of that land is
used to grow the two major grains: rice and wheat. India is the second
leading producer of rice produced in the world produced only by China,
Indias annual rice production is around 85-90 million tons. Annual
consumption is around 85 million tons. In Asia rice is cultivated in seasons,
winter and summer.
Food Corporation of India purchases around 20% to 25% of the total
production in the country both under levy from the rice and paddy from he
farmers at minimum support prices announced by the government.
CURRENT SCENARIO
Food is one of the basic necessities of human beings. No one in
the world can survive without food. Rice is one of the important food items
of the people in the world. It is obtained by processing paddy. Rice is
intimately involved in the culture as well as the food ways and economy of
many societies. More than half of the population of the world depends upon
rice for their daily nutrition. At present there are 111 paddy-cultivating
countries in the world including India. Almost 90% of world rice grows in
Asian countries. China, Thailand, India, Japan, Bangladesh and Indonesia
etc are the leading producers of rice in the world. China is the largest
producer of the rice in the world.

India is the major producer of agro commodities in the world.

Since independence the food grain portion in India has increased almost
four-time. India rank first in the production of tea and sugarcane, and second
in rice, milk, and vegetable production. Rice is the staple food of India and
more than 90% of the people in southern part of India consume rice as their
ma in food.
WORLD WIDE RICE PRODUCTION

Rice cultivation is the principal activity and source of income

for millions of households around the globe, and several countries of Asia
and Africa are highly dependent on rice as a source of foreign exchange
earnings and government revenue.
Rice is the second largest produced cereal in the world. At
the beginning of the 1990s, annual production was around 350 million tons
and by the end of the century it had reached 410 million tons.
Production is geographically concentrated in Western and
Eastern Asia. Asia is the biggest rice producer, accounting for 90% of the
world's production and consumption of rice. China and India, which
account for more than one-third of global population supply over half of the
world's rice. Brazil is the most important non-Asian producer, followed by
the United States. Italy ranks first in Europe.
The world's major rice-producing countries - including the
two most populous nations, China and India - have emphasized the
importance of continuing to develop new rice varieties to guarantee Asia's

food

security

and

support

the

region's

economic

development.

Today, rice is grown and harvested on every continent except

Antarctica, where conditions make its growth impossible. The majority of
all rice produced comes from India, China, Japan, Indonesia, Thailand,
Burma, and Bangladesh. Asian farmers still account for 92-percent of the
world's total rice production. More than 550 million tons of rice is produced
annually around the globe. In the United States, farmers have been
successfully harvesting rice for more than 300 years. There are thousands of
strains of rice today, including those grown in the wild and those which are
cultivated as a crop.

RICE IN INDIA

Rice is grown in many regions across India. For about 65% of

the people living in India, rice is a staple food for them. Rice is essential to
life in India. It is a part of nearly every meal, and it is
grown on a majority of the rural farms.
Some important facts about rice in Indian Scenario are as:
Agriculture is the main source of income for families in India. Farms cover
over half the land and almost three-quarters of that land is used to grow the
two major grains: rice and wheat.
India is the second leading producer of rice in the entire world, preceded
only by China.

 India's annual rice production is around 85-90 million tons. Annual

consumption, is around 85 million tons.
In India, Rice is cultivated in both seasons - Winter and Summer.
West Bengal, Uttar Pradesh, Andhra Pradesh, Punjab, Tamil Nadu, Bihar,
Orissa, Assam, Karnataka and Haryana are the major producing states. More
than 50% of total production comes from the first four states.
Food Corporation of India purchases around 20 to 25% of the total rice
production in the country both under levy from the rice mills and directly in
the form of paddy from the farmers at Minimum Support Prices announced
by the Govt.
More than 4000 varieties of rice are grown in India.

India is the world's largest exporter of Basmati rice to Saudi Arabia

and other Middle East Countries, Europe, and the United States.

India has the potential to export one million tons of Basmati rice.

Major destinations for Indian non-basmati, white/parboiled rice are

Bangladesh, Indonesia, Philippines, Nigeria, South Africa, Ivory Coast, and
other African countries.

PRODUCTION OF RICE IN KERALA

Rice is the main food of Kerala. At least in every Kerala

household rice is being consumed twice a day. The average production of
paddy in Kerala is established by the Govt. at 20 Lakhs MT, out of which
30% is being produced in Kuttanad and Palakkad.
With the increase in output of paddy in these districts there
happened progressive growth in the establishment of paddy processing mills
or rice mills in these areas. There are about 170 modern rice mills in Kerala
out of which 83 major rice mills are located in Ernakulam district. Aluva,
Kalady, Koovapady panchayath tops in the matter of having more rice mill
units. There are about 41 rice mills running as small-scale industry units in
these areas.
PADDY CULTIVATION IN KERALA
Paddy is cultivated in almost all districts of Kerala. Rice
production has experienced continuous decline in area over 2 decades. Rice
Production touched around 14 lakh tones in the mid seventies. Even at its
peak level internal production was hardly sufficient to meet 50% of states
requirement. Consequent to the enormous pressure, where high value crops
like Coconut, Banana, Pineapple and Rubber have exerted, area under paddy
has declined from its peak coverage of 8.81 lakh hectares in mid seventies to
3050 hectares in 1999-2000.
The production of rice is declining every year. This itself is an
indication of the problems faced by the cultivators of Kerala. If proper
measures are not being taken to overcome this situation, then this sector will

be abolished from the state within no time. The main problems concerning
these cultivators are high cost of cultivation and less return for their
products; the products from other states are also affecting them adversely.
The following table shows the trends in area under paddy
cultivation in Kerala from 1991-1992 to 1999-2000. In the table the
production of rice is declining every year.
In Kerala rice is considered as the best food for Keralites.
Government estimates the average annual production of paddy in Kerala. at
20 lakh metric tones. In this Kuttanad and Palakkad alone produces 30% of
the annual production. Paddy cultivation in Kerala alone has its own
contribution with 26% of cropped area. It works out to more than 99% of the
production of cereals and 91.1% of the seasonal crops in the State. But in the
recent years many small cultivators who has land less than 1 acre has
stopped production of rice due to rise in cost of cultivation and less profit.

COMPANY PROFILE

COMPANY PROFILE
K.K.R Group was set up in 1976 by Mr. K.K. Karnan, a man who
set out with the vision to bring quality rice into the traditional homes of
Kerala in South India. A venture which started out with traditional method
of boiling, sun drying and milling, grew into one of the most modern rice
processing houses in India with the latest world-Class technology today.
KKR Mills boasts of a state- of the-art plant with the highest levels of
technology in the world, ensuring products that meet the most stringent
quality and hygienic standards.
The K.K.R Group is now all set to become a name to reckon within
foods. The group has plans to set up a food park with facilities to process
and manufacture a wide range of food products like spices, pickles and
other products for world markets.
The factory of KKR Mills is located in the green, pollution-free
Okkal Township, near Kochi in Kerala in South India. This facility is
equipped with the latest technology in the world for every aspect of
processing of paddy-right from destoning, cleaning, drying, de-husking,

bran-removal, polishing and finally sorting. This infrastructure of around 25

crore of rupees in one of the largest in India.
KKR Mills is the only rice mill in South India to use the Z-sortex
machine capable of optical inspection for quality control. This machine
scans every grain of rice and removes discolored, broken and immature
rice, ensuring that only rice that meets the specification calibrated in the
computer is selected for packaging. The result - beautiful rice of even size,
color and bran that is a feast for the eyes and a wholesome meal.
Nirapara - the brand name in which KKR Mills markets rice, is
today the largest selling brand in Kerala and has become a household name.
The KKR Group is now all set to become a name to reckon within
foods. The group has plans to set up a food park with facilities to process
and manufacture a wide range of food products like spices, pickles and
other products for world markets.
Present Status of the Industry
Today the production of milled rice average 698 billion pounds (355
million kilograms) every year. Milling is the process of removing the layers
of kernel and adding a coat of glucose and tale for glossy finish. The
process rice contains about 8% proteins and small amounts of facts. In India
the main rice producing states are Kerala, Tamil Nadu and Andhra Pradesh
etc. There are various varieties of rice available like Matta, Vadi, Jyothi,
Karanthi etc. At present there are 3 paddy cultivating countries in the world
including India. Almost 90% of the world rice grows in Asian countries.
China, India, Japan, Bangladesh and Indonesia etc are the leading producers

of rice in the world china, the largest producer of the rice in the world. Rice
is one of the important food items of the people in the world. The average
production of Kerala is estimated by Government at 20 lakhs MT out of
which 30% is being produced in Kuttanadu and Palakkadu. There are about
155 modern rice mills in Kerala and out of which 70 majority of rice mill
located in Ernakulam district, Aluva.
Food is one of the basis necessities of human being no.1 the world
can survive without food. Rice items of the people in the world. It is
obtained by processing paddy. People of Kerala mainly depend upon rice
for their daily meals. In he case of productivity also Kerala contributes a
major part of Indian economy.
FUTURE SCOPE OF THE INDUSTRY
In western countries rice is used primarily in breakfast meals after
native to potatoes. It is used not only as grain but in other forms as well
East Asian people grind it into flour for rice cakes and pastry. The Japanese
ferment the grain to make cakes a strong rice bear in china and India rice
appears in many processed food including certain breakfast cereals, paddy
food, snack foods, frozen foods and flour rice is an excellent source 43 MT
of Carbo Hydrates, nourishing substance that provide the body with energy.
People of Kerala mainly depend upon rice for their daily meals. Most of the
South Indias daily means is rice therefore vast future in industry.

OBJECTIVES OF THE COMPANY

 To stimulate consumer to make purchase.

To introduce new product.
To encourage existing customer to buy more.
To be more competitive in the market.
To create more sales in the off season.
To promote export business.
To introduce quality control technique for improving the quality of
product.
To provide service to society through Janaseva.
ECONOMIC OBJECTIVES
Increase profit.
Decrease cost.
Production of goods and services.
Creating more customers.
Innovations.
SOCIAL OBJECTIVES
Quality goods and services.

 Reasonable Price.
Provision of employment.
Utilization of resources properly.
Welfare of the employees.

EXPORTS
The KKR group are mainly involved in the manufacture of quality
rice and rice products. The products are sold under the brand name
NIRAPARA. The capacity of the plants of the KKR group is 225 MT per
day.
NIRAPARA rice and rice products are exported to UAE, USA,
Canada, UK, Switzerland, France, Australia, New Zealand, Singapore etc

MANUFACTURING
The factory of KKR Mills is located in the green, pollution-free
Okkal Township, near Kochi in Kerala in South India. This facility is
equipped with the latest technology in the world for every aspect of
processing of paddy-right from destoning, cleaning, drying, de-husking,
bran-removal, polishing and finally sorting. This infrastructure of around 25
crore of rupees in one of the largest in India.

KKR Mills is the only rice mill in South India to use the Z-sortex
machine capable of optical inspection for quality control. This machine
scans every grain of rice and removes discolored, broken and immature
rice, ensuring that only rice that meets the specification calibrated in the
computer is selected for packaging. The result - beautiful rice of even size,
color and bran that is a feast for the eyes and a wholesome meal.

KKR GROUP OF COMPANIES

S.N.Rice Mills
KKR Mills
KKR Flour Mills
KKR Agro Mills Pvt.Ltd.
KKR Food Products
S.N. Agro Products
S.N.Tile Works
Five Star Metals Pvt Ltd.
KKR Products&Marketing Pvt.Ltd.

 Lotus Rural Development Society

KKB Fencing Co. LLC, Dubai, UAE
Bik -Maark International Marketing (P) Ltd.
Bik -Maark Builders & Realtors (P) Ltd.
MANAGING DIRECTOR- Mr. K.K. Karnan
BOARD OF DIRECTORS: Mr. K.K. Karnan
Mr. Biju Karnan
Mrs. Ammini Karnan

CAPITAL OF THE COMPANY ( Financial Highlights)

This mill has a capital of Rs. 130 crores in 2010.

PRODUCTION UNIT

PRODUCTION UNIT

OKKAL

CHELAMATTAM

The Nirapara rice mills consist of 2 production units. Two units are related to
rice and 1 unit is powder items. Both are situated in Kalady.

ORGANIZATION STRUCTURE
CHAIRMAN
VICE CHAIRMAN
PRESIDENT
HUMAN RESOURCE DEPARTMENT

Account

Finance

Asst.
Manager

Cost
Account

Food &
Rice

Account

Sr.
Accounta

Cashier

QC Dept

Bank
Asst.

Purchase

Vehicles

Export
Assistant

Assistant

Driver

Marketing

Production

North

Quality
Chemist

Micro
Biologist

Account
Data
Entry

Export

Lab
Assist.

Supervisor

Workers

Operators

Accountant

Helpers

Asst.Mgr

Centr
al

Asst.Mgr

Sth

Asst.
Mgr

TSM

TSM

TSM

TSE

TSE

TSE

*TSM- Territory Sales Manager

*TSE- Territory Sales Executive

PRODUCT PROFILE

PRODUCT MIX
PRODUCTS
Rice
Rice Flours
Wheat Flours
Spices
Pickles

PRODUCT LINE
The KKR Group is now all set to become a name to reckon within foods.
The group has plans to set up a food park with facilities to process and
manufacture a wide range of food products like spices, pickles and other products
for world markets.
A. Rice
Single Matta Rice

Idli Rice

Rose Matta Rice

Jyothi Rice

Payasam Rice

Jaya Rice

Matta Broken Rice

Cherumani Rice

Ponni Rice

Vita Rice.

B. Rice Flours
Idly Powder
Appam/Idiyappam Powder
Dosa Powder
Chemba Puttu Powder
Puttu Powder (White)
Pathiri Powder
Rice Powder

C. Wheat Flours
Broken Wheat
Rava
D. Spices
Red Chilli Powder
Chicken Masala
Coriander Powder
Fish Masala
Turmeric Powder

 Meat Masala
Sambar Powder
Curry Powder
Rasam Powder
Pickle Powder
Black Pepper Powder
Garam Masala
E. Pickles
Ginger Pickle
Garlic Pickle
Mango Pickle
Kadumanga Pickle
Goose Berry
Hot Time
Bitter Ground
While Line

 Mixed Vegetable
Vadukpuli Line
Wild Mango
Irumbenpuli(Karam Bula)
Hot & Sweet Mango
Tindra Pickle
Lololica
Coconut Chutney
Sweet 17
Coconut Chutney Powder
Promose Chutney Powder
Idli Chutney Powder

MARKET SHARE

Out of the total sales, 95 % in Kerala and in India 75%. Export is about
65%.
COMPETITORS
Double Horse Rice 10%
Periyar Rice- 5%
Pavizham Rice- 10%
Nirapara Rice- 75%

periyar rice

Nirapara Rice

pavizham rice

double horse rice

FUTURE PLAN
The future plan of the company is that they are intended to making new
nutritious food for children and old age people and also special healthy food
product for youth their motive is sale of these product in out of India hence they
prepared to export these items in all countries. For producing the food products
the company collected the raw materials or items from the selected farms only,
that farms in always kept the quality of products and retain the standard of them
moreover they intended to establish one park for food things means all types food
grains is store themselves and cultivated them vide areas in various type of
agriculture.

NEW TECHNOLOGY

The KKR group is all set to enter the food processing industry on large
scale bringing in the work latest technology and machines. In every new area of
achieving, attention to purring and hygiene that meet the highest world
requirement is the focus of the grow.
NEW PRODUCT
The KKR group is looking at venture in food processing and presenting
with a large scale investment on a food technology park in over 12 crore of land
located in a pollution free environment friendly green area besides spices, rice and
wheat product. The group has plans to manufacture an international product range
like Past presents, source squashes, fruit based foods, pickle, juices, coconut based
food etc.
NEW MARKET
Today NIRAPARA group has centered the Middle East markets and farest
AMERICA and EUROPE. Today is not far before the KKR group makes in food
in the international markets and with the presence and commitment of the group it
is indeed a dream that will true before long.
NEW COMPANY OF KKR GROUP
The KKR group company started in own new firm, known as BIK MAARK
company in 18months ago. They are making imported food products and food
supplements like SWEET SEVENTEEN FOR U.
VISION

To provide total consumer satisfaction through continuous improvement in

products process and services, develop and motivate employee on going HRD
program.
MISSION
The mission of the company is that to distribute the high quality products to the
people, further they want to satisfy the consumer.

DISTRIBUTION CHANNEL OF NIRAPARA PRODUCTS

NIRAPARA

KKR GROUP OF COMPANIES

DISTRIBUTORS

RETAILERS

CUSTOMERS

DEPARTMENTS

PRODUCTION DEPARTMENT
PURCHASE DEPARTMENT
ACCOUNTS DEPARTMENT
FINANCE DEPARTMENT

 MARKETING DEPARTMENT
EXPORT DEPARTMENT
QUALITY CONTROL DEPARTMENT
HUMAN RESOURCE DEPARTMENT

PRODUCTION DEPARTMENT
Production department deals with the process of producing a particular
product that means converting inputs in to output. It is the major functions
involving in the production. It includes all physical commodities to be used to
manufacture the final product.

Functions of Production Department

Evaluate and approve manufacturing, equipment process, testing and test
equipment.
Establish point of inspection and test of selected points in the production
process.
Assure that purchased material confirms to the requirement of purchase
confirm to the requirement of purchase order and specification.
Perform inspection and test the selected points in the production process.
Collect and analysis, inspection and task date, provide information and
process and product quality level.
Control the handing preservation and packing of material and equipment
from receipt shipment of the final product.

PURCHASE DEPARTMENT

The purchase department plays a very important role in an organization

because purchasing habit is to every vital factor concerning the manufacturing,
quality, cost efficiency and prompt. This function is to procure materials,
suppliers, services, machines and tools at the most favorable terms consistent with
maintaining the desired quality. Purchasing is the most important function of
materials management. At the moment an order is placed for the purchase of
materials; a substantial part of companies finance is committed which affects cash
position of the company. Purchase department looks after all purchase including
raw materials.

Functions of Purchase Department

Purchase requisition or identify for material.
Exploring the source of supply and choosing the supplier.
Purchase order.
Receiving and inspecting materials.
Checking and passing of bill for payments.

ACCOUNTS DEPARTMENT
Accounting is a language of business the basis function of accounting is
communicating the result of the business operation to various in it. Accounting
department deals with recording, classifying, and summarizing of business
transactions which are of a financial character and are expressed in terms of
money.

Functions of Accounts Department

Manage all accounts and cost work.
Checking the work done by the book keeper so as to ensure that all financial
transactions.
Effective cash Management.
Preparing Trading Profit and Loss Account and Trial Balance.
Passing adjusting and rectifying entries.
Keeping accounting records to comply with legal requirement under income
tax act, sales tax act, company law account.
Stock verification, product pricing.

FINANCE DEPARTMENT
Finance department is one of the important in any organization. Finance
department any organization is responsible for all financial activities.

Functions of Finance department

The NIRAPARA mill maintains a clear and perfect accounting system. The
main activity of the finance department is working capital management,
preparation of financial statement such as balance sheet, profit and loss account
etc. The Finance Department carry out all activities pertaining to long term and
short term requirements of the operation using purchase bill, maintaining the
account of contracts, sub-contracts, income tax deductions.
The auditor manages the matters relating to tax. He also files the returns to
the tax authorities. The industry is selling their products both for cash and credit.
Credit period is two to three months.

MARKETING DEPARTMENT
Marketing all round us in one form or another is close to every individual.
The activity of marketing is of the people, and by the people. Marketing plays an
important role in society by helping us satisfy our needs and wants and by helping
organizations to determine what to produce.
Product

Rice.

Price

Rs.220 and 280.

Promotion

Advertisement, Coupon, Offers like Extra Gram Free.

Functions of Marketing Department

1. Local Area Sales
2. Rural Marketing
3. Inter State (Bangalore, Mumbai, Chennai, Delhi, Goa, Pune, Kanpur)
4. Exports( Europe, UK, USA, & all the Middle East Countries)
ADVERTISEMENT
Through TV channels, newspapers and Magazines.
RESPONSIBILITIES OF SALES EXECUTIVES

 Collect order from different shops.

Fix the driver root for sale.
Identify complaints.
Give information about and stock keeper
Inform about which more sale has.

EXPORT DEPARTMENT
KKR Group and mainly invaded in the manufacturing of quality rice and
rice product, the products are sold under the brand name NIRAPARA the
capacity of the plant of the KKR group is 225 MT per day 60% of sales in the
NIRAPARA products are in foreign market NIRAPARA products are exported to
14 countries including all middle east countries and Europe, UK, Singapore etc.

Functions of Export Department

Identify the export potential.
Assure the export quality.
Proper delivery of goods.

QUALITY CONTROL DEPARTMENT

KKR Group gives much importance to ensure the quality of product. So the
company has a well established Quality Control Department. The company has a
department with most modern machinery to ensure quality products. The company
ensures the quality product at every stage pf production from receiving of raw
materials till packing of product.
Quality Policy of KKR Group
Manufacturing and marketing a ground food products meeting international
quality standards is the commitment of KKR Group.
Corporate Social Responsibility of KKR Group of Companies Ltd :
Contribute midday meal for poor students in Janaseva at Aluva.
Conduct child homes to take care of the orphans.
Giving employment to the local people in the unskilled area.

 K.K.R offers numerous facilities in the education sector.

The main precaution taken by the company in the matter of pollution
control:
Company working under the strict rules of environmental protection status.
Keep environment friendly surroundings.
Disposal of wastes

HUMAN RESOURCE DEPARTMENT

The most valuable asset of an organization is the human resource.
Performance and productivity of an organization directly related to the
performance of employees in the organization. The HR manager of the KKR
group control human resources of the company. The management has maintained
a good relation with the employees of the organization. Human resource is the
most important asset of an organization. There effective management is to
determine the success of business. The KKR group has efficient human resource
department.
Human Resources department deals with recruitment of employees. Such as
inviting application conducting interview selection of interview training to the
employees. The company has maintained a record regarding the every employees
in the organization.

Purpose
The purpose of this procedure is to establish a system for the personnel and
administrative activities of the institute.
Scope
This procedure is applicable to the general administration, competency
requirements, selection, induction, training and performance appraisal, of the
employee(manpower planning, recruitment, attendance, leave and salary
administration, registration and recruitment).

Responsibility
HR Manager is responsible for implementation of this procedure.
Personnel Policies
Recruit the right kind of personnel with defined competency and provide
required training to up-to-date them for achieving the mission and quality
objectives set for the institute.
RECRUITMENT AND SELECTION
Man power requirement needed for smooth functioning organization. This
requirement are identified required person is selected for the job. This is done by
personal department.
SOURCE OF RECRUITMENT

1. Internal source
2. Direct Recruitment by advertising in newspapers
3. Employee reference
SELECTION
The job profile is communicated to the consultants and biodatas of
candidates are invited. The screening of biodatas is completed first by the
concerned HR departments and then they concerned Functional Head. The HR
department conducted the preliminary interview. The final interview is conducted
by a panel consisting of the concerned Functional Head and in case of key
position also by the Chairman and MD.
Training
Training is given to all the office, factory and sales staff. Training is
arranged with the help of external training personnel.
Find out the weakness of the staffs from the appraisal from and arrange
training to improve the skill.
Arrange training in time to time in the topics relevant to the performance
requirement changing trend in business and office formalities.
Arranging training on the basis of the recommendation given by the staff in
the appraisal form.
Induction

The purpose of induction is to induct personnel into the organization and to

familiarize with the function of various departments the employee is given
induction schedule based on which he/she has to understand the basic function of
all the relevant departments.
Promotion
Promotion on the basis of performance for managers/executives and for the
workmen on the basis of experience and the promotional policy. The policy
provides for promotion from one grade to another to the next grade.
Performance Appraisal
The purpose is to evaluate the performance of each employee during the
previous years and to identify the training required for further improvement on the
performance appraisal form. At the end of training and probation period the
employees performance is evaluated. Overall performance found to be good
he/she is placed. If the performance in training is unsatisfactory further
improvement training is required.
WELFARE ACTIVITIES
Company provides various type of statutory and non-statutory benefit to
workers:
1. Canteen
2. Rest room
3. Dressing room

4. Drinking water facilities

5. Mess facility
6. Mobile phone allowance
7. First aid
8. Mask, glouse
9. Accommodation
WORKING TIME
For Office Staffs

9.00 AM to 5.00 PM

For Workers

8.00 AM to 5.00 PM

CHAPTER

ANALYSIS AND INTERPRETATION

1. What is the nature of outlet?

Item
NIRAPARA
EASTERN
BOTH
NONE
TOTAL

number
42
34
20
4
100

percentage
42%
34%
20%
4%
100%

STATUS
NIRAPARA
EASTERN
BOTH
NONE

2. How long you being the customer of NIRAPARA.?

Periods

number

Percentage

Below 1 year
1-5 years
6-10 years
above 10 years
Total

15
40
20
15
100

15%
40%
20%
15%
100%

40
35
30
25
20
15
10
5
0
1 YEAR

1 TO 5

6 TO 10

ABOVE10

3. How frequently would you expect the distributor vehicle to supply

you?

period
Daily
Alternativ
e days
Weekly
above a week
Irregularly
Total

Number
0
19

Percentage
0
19%

70
1
0
100

70%
1%
0%
100%

80
70
60
50
40
30
20
10
0
DAILY

ALTERNATIVE

WEEKLY

ABOVE A WEEK IRREGULARLY

4) Whats your opinion about the package and protection during

NIRAPARA delivery?
Opinion
Very Good
Good
Average
Bad
Very Bad
Total

number
32
43
20
3
2
100

Percentage
32%
43%
20%
3%
2%
100%

Opinion
Yes
Neutral
No
Total

Number
74
25
1
100

Percentage
24%
25%
1%
100%

45
40
35
30
25
20
15
10
5
0
VERY GOOD

GOOD

AVERAGE

5) Do you get supply as per demand?

BAD

VERY BAD

80
70
60
50
40
30
20
10
0
YES

NEUTRAL

NO

6) How you feel about the pricing of the products?

Opinion
Very high
High
Average
Low
Very low
Total

Number
30
50
12
8
0
100

Percentage
30%
50%
12%
8%
0
100%

7) Do you think that weather will affect the storage of products?

Opinion
ye
s
Neutral
No
Total

Number
15

Percentage
15%

5
80
100

5%
80%
100%

90
80
70
60
50
40
30
20
10
0
YES

NEUTRAL

NO

8) How do you feel about the commission scheme OF NIRAPARA?

Opinion
Highly
satisfied
Satisfied
Average
Dissatisfie

Numbe
r
0

Percentag
e
0

40
20
28

40%
20%
28%

d
highly
dissatisfied
Total

12

12%

100

100%

40
35
30
25
20
15
10
5
0
H.S

AVE

D.S

H.DS

8%

48%

Highly satisfied

24%

Satisfied

20%

Average
Dissatisfied
highly dissatisfied

9) Rate the consumer preference of coca cola products (1,2,3,4,5)

ITEM

OVERALL
RANK

RP

CP

PICKLE

RICE

6
5
4
3
2
1
0
RP

CO

PICKLE

RICE

10) How do you feel about the relationship with Distributor/seller?

Opinion
Highly
satisfied
Satisfied
Average
Dissatisfie
d
highly
dissatisfied
Total

Numbe
r
50

Percentag
e
50%

30
14
6

30%
6%
6%

100

100%

50
45
40
35
30
25
20
15
10
5
0
HS

SA

CHAPTER

AVE

DS

HS

FINDINGS AND SUGGESTIONS

FINDINGS

The study reveal that majority of the consumers perception that recognition of brand
is not an important thing only the price and quality is important.
Availability of the product in the shop is the major criteria while selecting a brand
if it is not available customer will chose another one and may be stick on in that
product
The study reveals the majority of the customers know about nirapara products and
the logo of the company.

 Most of the outlets of NIRAPARA having coverage.

Customer are satisfied with the availability of products in the
Peak sales season
A few Outlets conveyed that the products supplied are near expiry.
Most of the customers expressed that the schemes given by NIRAPARA are such
is good.
Customers are satisfied with the commission provided by nirapara.
The most outselling product of NIRAPARA is RICE.

SUGGESSIONS

In the present synario shows that the impact of television

advertisements is very low , so make concentration on other
advertisement areas like conducting food fest , trade shows, shop
advertisements, and online advertisements.
Most of the customers recommended that they need more value added
products from nirapara.

 Now a days the customers are preferring dealer point service, so

increase the number of dealers to avoid the shortage of products.

Take proper step to avoid duplication of product in market and

understand the increasing or decreasing trend of close substitute
products

CONCLUSION

CONCLUSION
The marketing study helps to have an overall idea about
marketing. It helps to identify the functions of Marketing. Also it enables the
researcher to know about the effectiveness of distribution chanel, companys
position and competitors in the market. It is very useful to the researcher to know
about the future of rice industry. Nowadays brand image is vital part in every
business. Many of the organization spend a huge amount of money for brand
building. In this competitive world, the organization believes that effectiveness of
distribution channel is the main factor to determine the sale of their product. The
study has reveal that Nirapara is having great demand and an they are in the top
market.

BIBLIORAPHY

BIBLIORAPHY

1. PHILIP KOTLER, GARYAMSTRONG; PRINCIPLES OF MARKETING,

PRENTICE HALL OF INDIA PVT: LTD, 9TH EDITION.

2. KOTHARI C.R, RESEARCH METHODOLOGY SECOND EDITION,

VISHWA PRAKASHAN PULISHERS, NEW DELHI-2003.

3. L.R.POTTI; QUANTITATIVE TECHNIQUES,YAMUNA

PUBLICATIONS,2002

4. SARAVANAVEL P; RESEARCH METHODOLOGY, KLYANNI

PUBLICATIONS, NEW DELHI 1995.
5. www.nirapara.com
6. www.riceindia.com

ANNEXURE

EFFECTIVENES OF NIRAPA DISTRIBUTION CHANAL QUESTIONNAIRE

Questionnaire

Outlet name:
Owner name:
Address:

Phone no:
1) What is the status of your outlet

a) nirapara

b) eastern

c) Shared

if B Why
a) Supply problem of nirapara

b) Any other

problem

2) How long you being the customer of nirapara?

a) Below 1 year
c) 6-10 years

b) 1-5 years
d) above 10 years

3) How frequently would you expect the distributor vehicle to supply

you?
a) Daily

b) Alternative days

c) Weekly

d) above a week

4) Whats your opinion about the package and protection during

NIRAPARA delivery?
a) Very Good

b) Good

d) Bad

c) Average

e) Very Bad

5) Do you get supply as per demand?

a) yes
b) Neutral
c) No
6) How you feel about the pricing of the products?
a) Very high

b) High

d) Low

e) Very low

c) Average

7) Do you think that weather will affect the storage of products?

a) Yes

b) neutral

c) no

8) How do you feel about the commission scheme OF NIRAPARA?

a) Highly satisfied

b) satisfied

c) average

d) Dissatisfied

e) highly dissatisfied

9) Rate the consumer preference of cNIRAPARA products (1,2,3,4,)

a) RICE POWEDER
b) PICKLE

c) CURRY POWEDER
d) RICE

10) How do you feel about the relationship with Distributor/seller?

a) Highly satisfied

b) satisfied

d) Dissatisfied

e) highly dissatisfied

c) Average

11)Suggestions..........................
........................................................................................