A

PROJECT REPORT
ON

“DISTRIBUTION NETWORK
OF SAMBALPURI BASTRALAYA”
(BARGARH)

SUBMITTED TO

IN THE PARTIAL FULFILLMENT OF THE DEGREE

BACHELOR IN BUSINESS ADMINISTRATION

Guided by: Submitted by:

Mr. Hemanta Kumar Mishra Smruti Ranjan Meher
Marketing Officer Roll NO. 3316BBA044
Sambalpuri Bastralaya BBA 3rd Year

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 DECLARATION

I hereby declare that, the project report on “Distribution

Network” at Sambalpuri Bastralaya, Bargarh submitted by me for
the partial fulfillment of the degree of Bachelor in Business
Administration 2015-2018. The information given in the report are
exclusively based on the data collected while conducting Internship at
Sambalpuri Bastralaya, Bargarh & has not formed a part of any other
project previously done.

Smruti Ranjan Meher

Roll No - 3316BBA044
BBA 3rd Year

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 ACKNOWLEDGEMENT

I am really very much thankful to many people who helped and

supported me to carry out this project under their guidance.

I express my hearty thanks to Mr. HEMANTA KU. MISHRA,

Marketing Officer and other members of Sambalpuri Bastralaya, Bargarh
who were kind enough to provide me the valuable information and precious
time for the project work.

I am also very much grateful to our respected Principal Dr. KSHIROD

PRADHAN, VIKASH SCHOOL OF BUSINESS MANAGEMENT,
Bargarh who encouraged for the project and also thankful to rest of the staff
members who were indulged in this project by helping me in completing this
project work.

And my special thanks to Mr. R.S.V Krishna, Senior Lecture,

VIKASH SCHOOL OF BUSINESS MANAGEMENT, Bargarh for giving
his valuable time, guidance and support.

Smruti Ranjan Meher

Roll No - 3316BBA044
BBA 3rd Year

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 CONTENT
PAGE NO.

CHAPTER -1 05-08
INTRODUCTION OF THE STUDY

CHAPTER -2 09-29
COMPANY PROFILE

CHAPTER -3 30-39
LITERATURE REVIEW
CHAPTER -4 40-42
RESEARCH METHODOLOGY
CHAPTER -5 43-59
DATA ANALYSIS AND INTERPRETETION

CHAPTER -6 60-63
FINDINGS, SUGGESTION
AND RECOMMENDATIONS

CONCLUSITION 63

ANNEXURE -1 BIBLIOGRAPHY 64

ANNEXURE -2 QUESTIONNARY 65-66

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 CHAPTER-1
INTRODUCTION

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INTRODUCTION OF THE STUDY:-

A distribution channel is a chain of businesses or intermediaries through

which a good or service passes until it reaches the end consumer. It can
include wholesalers, retailers, distributors and even the internet itself.
Channels are broken into direct and indirect forms, with a "direct" channel
allowing the consumer to buy the good from the manufacturer, and an "indirect"
channel allowing the consumer to buy the good from a wholesaler or retailer.

A distribution channel is the path by which all goods and services must
travel to arrive at the intended consumer. Conversely, it is also used to
describe the pathway that payments made from the end consumer to the original
vendor. Distribution channels can be short or long, and depend on the amount of
intermediaries required to deliver a product or service.

However, goods and services are sometimes passed to consumers

through multiple channels, a combination of short and long. While increasing
the number of ways in which a consumer can find a good can increase sales,
it can also create a complex system that sometimes makes distribution
management difficult. In addition, the longer the distribution channel, the less
profit a manufacturer might get from a sale due to the fact each intermediary
charges for its service.

A channel of distribution comprises a set of institution which performs

all of the activities utilized to move a product and its title from production to
consumption.

Bucklin-Theory of Distribution Channel Structure (1966)

Another element of Neil H. Borden's Marketing Mix is Place. Place is

also known as channel, distribution, or intermediary. It is the mechanism
through which goods and/or services are moved from the manufacturer/
service provider to the user or consumer. Distribution channels are behind
every product and service that consumers and business buyers purchase
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everywhere. Usually, combination on institutions specializing in
manufacturing, wholesaling, retailing and many other areas join force in
Distribution channels.

A distribution channel is a set of interdependent organisation involved in

the process of making a product or service available for use or consumption.

Distribution channels decisions play a role of Strategic importance in the

overall presence and success a company enjoys in the market place.

There are six basic „Channel‟ decisions:

Do we use direct or indirect channels? (e.g. „direct‟ to a consumer,
„indirect‟ via a wholesaler) Single or multiple channels. Cumulative length of
the multiple channels. Types of intermediary (see later). Number of
intermediaries at each level (e.g. how many retailers in Southern Spain). Which
companies as intermediaries to avoid „intra-channel conflict‟ (i.e. infighting
between local distributors).

Selection Consideration –how do we decide upon a distributor?

Market segment – the distributor must be familiar with your target consumer
and segment. Changes during the product life cycle – different channels can be
exploited at different points in the PLC e.g. Foldaway Scooters are now
available everywhere. Once they were sold via a few specific stores. Producer –
distributor fit – Is there a match between their polices, strategies, images, and
yours? Look for „synergy‟. Qualification assessment – establishes the
experience and track record of your intermediary. How much training and
support will your distributor require?

Tata Economic Consultancy Services (1973)5; the study conducted by

the Economic Consultancy Services on “Manmade Fibre Fabrics – A Necessity
or Luxury?” Covering all the consumption of manmade fibre base fabrics is not
restricted to a few households in metropolitan cities and urban towns. The
demand has spared to the households around and below the poverty line
residing in Dustan rural villages.

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IMPORTANCE OF THE STUDY:-

 The study is very significant to understand the distribution channels.

 The study is important to know the dealers satisfaction level for the
dealership.

 The study is important to know the dealers satisfaction level in the price.

 The study is important to know the dealers preference for the quality.

 The study is very important to know the sales volume.

 The study also analyses the effective media for improving the sales.

 The study is important to know availability of the raw material.

 The study is important to know margins in the saree.

 The study is important to find out the satisfaction level of customer with
the current distribution network system and delivery time.

 The study is important to find out the information provided by the

Sambalpuri Bastralaya is catching the customer attention or not.

 The study is important to find out which e-commerce sites customers

used the most for Sambalpuri bastralaya‟s product.

 The study is important to find out is Sambalpuri Bastralaya gives right

information to the customer.

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 CHAPTER-2
Company Profile

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Company Profile:-

Founder of Sambalpuri Bastralaya

NAME: Sambalpuri bastralaya handloom co-operative society Ltd.

Registration : 117/SM, Dt.22.06.1954

Date of functioning : 1.07.1954

Area of operation: Extending the district of Bargarh and Sambalpur. Besides it

is providing work to the weavers of Bolangir and Sonepur dist. and
members of 90 affiliated weavers societies.

SAMBALPURI BASTRALAYA :-
The Sambalpuri bastralaya was registered as a handloom co-operative
society under the Orissa co-operative societies acts and rules during the year
1954.the credit for starting the society goes to Padmasree Dr.krutartha Acharya
whose contribution to Orissa handloom sector has been second to none. It
started its business with effect from 1.7.1954 with an objective to produce high
quality handloom fabrics through its members, its affiliated societies and
production agents and arrange sale of their products. it has played outstanding role
in preserving and propagating the world famous typical sambalpuri technique of tie
and dye(IKAT) in handloom and promoting handloom industry in Orissa. The

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institution being a leading one in the State is widely known for its efficient
commitment for the up-liftman of Scheduled Cast, Scheduled Tribe and economically
backward classes of the society including women. More-over it provides opportunities
for the rural based employment in a large scale. It has earned national & international
reputation because of high business ethics of its founder Padmashree Dr. Krutartha
Acharya. It also plays an important role in the socio-economic development of
weavers of Western Orissa.

Sambalpuri sarees:-

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OBJECTIVES:-

The Sambalpuri Bastralaya was registered as a Handloom Cooperative

Society under O.C.S. Act & Rules during the year 1954. Padmashree
Dr.Krutartha Acharya is the founder of the society. It started its business with
effect from dt.1.7.1954. It is the largest Primary W.C.S. in the state & primarily
based in the Western part of Odisha. It plays an important role in the socio-
economic development of weavers of Western Odisha. It provides large scale
rural employment to SC,ST and economically back-ward classes of the society
including women. It had earned national and international reputation
because of the high business ethics of its founder.

Mission:-

 To give a thrust to the co-operative movement of Orissa.

 To preserve and propagate traditional handloom art and crafts and thereby
to promote handloom industry.

 To produce high quality handloom fabrics through its members and

arrange sales of their products.

 To uplift the socio-economic condition of the poor weavers from

economically backward classes including scheduled caste and scheduled
tribe and women category of the society.

 To arrange for providing better educational facilities to the children of the

weavers.

Vision:-

 To improve the skill level of the handloom weavers of the society and to
increase their wage earning.

 To undertake production of extensive range of fabrics to capture the

customers inside the country as well as abroad.

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  To produce quality fabrics with attractive designs and competitive price.

 To produce exclusive varieties of exportable products to enter into the

global market.

 To provide regular employment to maximum number of weavers under

the handloom sector and thereby to improve their economic and social
condition.

Goal:-

 To create scope for massive rural employment.

 To provide sustainable livelihood support to the weavers including those

from backward, SC and ST classes.

 To provide all possible supports to the organization to enable it grow &

prosper under the sector.

 To create continuous worldwide avenue of Sambalpuri Handlooms by

adding special identity to it.

 To shoulder the responsibility for the social security of the poor weavers
is the cherished goal of the society.

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 Both production and marketing cloth are being undertaken by the society.
It has a total of 6141 own member in 43 production centres. At present 3450
skilled weaver members are directly engaged in production of cloths.

Sambalpuri Saree is a traditional hand-woven

Saree where in the warp and the weft are „tie-dyed‟
Before weaving. It is produced in the Bargarh,
Sonepur, Sambalpur,Balangir & Boudh dist. of
Odisha. Sambalpuri sarees are known for their
Incorporation of traditional motifs like Shankha (shell),
Chakra(wheel), Phula(flower), all of which have deep
Symbolism. Sometimes animal motifs are also used to decorate the Borders and
pallu. The highpoint of these sarees is the traditional craftsmanship of the
„Bandhakala” , the Tie-Dye art reflected in their intricate weaves, also known as
“Sambalpuri Ikkat” . In this technique the threads are first tie-dyed and later
woven into a fabric, with the entire process taking many weeks. The Sambalpuri
sari is made from fabric woven on a hand-loom and is popular throughout India.
Varieties of the Sambalpuri sari include Sonepuri, Pasapaliu , Bomkai , Barpali
and Bapta saris, which are in high demand.

Fabric and Design of Sambalpuri Saree reflect an original style of craft

known as Baandha. Traditionally, craftsmen created Baandhas with images of
flora fauna or with geometrical patterns. More recently, new types of Baandha
depicting portrait, landscape and flower pots are being designed.

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Different types of sambalpuri saree:-

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 The Sambalpuri Bastralaya Handloom Co-operative Society Ltd. Bargarh
is a handloom co-operative society functioning since 1954 and emerged its kind
as an Apex Body in the state of Odisha under Textile & Handloom Department.
It is a Production-cum-marketing unit having its turn-over about RS.40.00 core
per annum. The society has a Dyeing unit of its own, in which grey yarn about
200 bundles has been dyed to meet the requirement of the production branches
for production. The colour has in the fabrics are AZO free and having fastness
in rubbing and bleaching. The society has 40 numbers of production centres of
its own along with Sambalpuri Saree is a traditional hand-woven ikat or saree
(locally called sadhi) where in the warp and the weft are tie-dyed before
weaving. It is produced in the Bargarh, Sonepur, Sambalpur, Balangir district,
Boudh District of Odisha. The saree is a traditional female garment in the Indian
Subcontinent consisting of a strip of unstitched cloth ranging from four to nine
meters in length that is draped over the body in various styles.

Sambalpuri sarees are known for their incorporation of traditional motifs

like Shankha(shell), chakra(wheel), phula(flower) all of which have deep
symbolism, but the highpoint of these sarees is the traditional craftsmanship of
the „Bandhakala‟, the Tie-dye art reflected in their intricate weaves, also known
as Sambalpuri “Ikkat”. In this technique the threads are first tie-dyed and later
woven into a fabric, with the late Prime Minister Indira Gandhi started wearing
them. In the 1980s and 1990s they become popular across India. To provide
protection to the weavers practicing this art, the handloom silk sarees
manufactured in Sambalpur and Berhampur in Odisha were included in the
Government of India‟s Geographical Indications (GI) registry.

More than 5600 numbers of highly skilled weavers working with 5365
looms and marketed its products through its 40 numbers own sales outlets and
13 numbers of sales representative inside and outside the state of Odisha.

This society covers production of tie & dye design Sarees, Dhotis,
Lungee, Napkins, Bed-covers, Furnishing material, Dress materials and so on of
cotton yarn, mercerized yarn, silk yarn and tussar yarn. The range of production
is more than 3000 varieties.

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The Sambalpuri Saree:-

(Sambalpuri baandha saree)

The Sambalpuri saree is made from fabric woven on a handloom and is

popular throughout India. Varieties of the Sambalpuri sari include Sonepuri,
Pasapali, Bomkai, Barpali, and Bapta saris, which are in high demand. Most of
them have been named after their places of origin and are popularly known as
Pata . Paintings on Tussar saris depicting Mathura Vijay, Raslila and Ayodhya
Vijay owe their origin to ‘Raghurajpur patta paintings.

Fabric and design:-

Sambalpuri fabrics reflect an original style of craft known as

Baandha. Traditionally, craftsmen created Baandhas with images of flora or
fauna or with geometrical patterns. More recently, new types of Baandha
depicting portrait, landscape and flower pots are being designed. Baandha
fabric is created using a tie-dye technique. The yarns are tied according to the
desired patterns to prevent absorption of dyes, and then dyed. The yarns or set
of yarns so produced is called 'Baandha'. The unique feature of this form of
designing is that the designs are reflected almost identically on both side of the
fabric. Once the fabric is dyed it can never be bleached in to other colour. This
versatile technique enables a craftsman to weave colourful designs, patterns
and images into a fabric capable of inspiring a thought or conveying a

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message. Thus Baandha can be defined as "A length of systematically arranged
yarn, dyed according to a preconceived design in such a manner so as to enable
a weaver to portray the design when the yarn is converted to a fabric through
the process of weaving". It is believed that this art migrated to Western Odisha
along with the Bhulia community who fled Northern India in the year 1192 AD
after the fall of the Chouhan Empire at the hands of the Mughals. Since then and
up to the year 1925 it flourished in Western Odisha in a limited number of
designs and in vegetable colours and consisted mostly of saris used by the
womenfolk of the Odisha. These saris were known as 'Bhulia-Kapta'. The
demand was limited, distress sale was common and the craftsmen lived in
penury.

Development:-

The Baandha fabric is popularly known by its geographical and cultural

name Sambalpuri owing to the pioneering efforts of Sri Radhashyam Meher,
who brought about a radical improvement in the skills of the craftsmen and the
quality of the products. Other master craftsmen who contributed to the
development of Sambalpuri textiles were Padmashree Kailash Chandra
Meher, Padmashree Kunja Bihari Meher, Padmashree Chatrubhuja Meher
and Padmashree Krutharth Acharya. Sambalpuri textiles today include
furnishing materials, dress materials and sarees in silk, cotton and
mercerised cotton in a variety of colours and many different designs.
Baandha craftsmen are also masters of the „extra warp‟ and „extra weft‟ style of
designing which can be seen in almost all forms of Baandha textiles.
Radhashyam Meher also produced Khadi textile using the Baandha art.

In 1926, Radhashyam designed the first handloom to weave textiles of

ninety inches width. This achievement made him the 'Parda agent' of the
Government of Bihar for the production of furnishing materials. Later, after the
formation of the state of Odisha, he became the 'Parda agent‟ of the government
of Odisha. His dexterity in the Baandha art and his ability to motivate the
weaving community in the region to improve their skills by providing the
necessary training and incentives enabled the creation of new designs
that received international fame and recognition.

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 Radhashyam Meher established his proprietary concern, named „Utkal
Parda Agency', at Sambalpur for the research, production and
marketing of Sambalpuri textiles. Acknowledging Radhashyam Meher's
unparalleled contribution to the growth and popularity of 'Baandha art', the
Ministry of Textiles of the Government of India has sponsored textile
exhibitions coinciding with his birth anniversary on November 20 and
organised by the Director of Textiles of the Government of Odisha.

He also played an active role in the cooperative movement and

organised the Meher Art Fabrics cooperative society Ltd and the Sambalpur
Regional Cooperative Marketing Society Ltd. (RCMS) . He was a member of
the All India Handloom Board in the year 1953. Until his death he was
always elected as the member of the Sambalpur Municipality.

(Sambalpuri Saree)

Today, the Baandha fabric is popularly known by its geographical

and cultural name Sambalpuri. Sri Radhashyam Meher, pioneer of
Sambalpuri Saree had brought about a radical improvement in the skills of
the craftsmen and the quality of the products. In 1926, Radhashyam designed
the first handloom to weave textiles of 90 inches width. His dexterity in the
Baandha art and his ability to motivate the weaving community in the
region, to improve their skills by providing the necessary training and
incentives enabled the creation of new designs that received international fame
and recognition.
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 These sarees first became popular outside the state when the late
Prime Minister Indira Gandhi started wearing them. In the 1980s and 1990s
they became popular across India. To provide protection to the weavers
practicing this art, the handloom silk sarees manufactured in Sambalpur and
Berhampur in Odisha were included in the Government of India‟s
Geographical Indications registry.

Present Status:-

 Sambalpuri Bastralaya is one of the largest Primary Weavers' Co-

operative Society in the Country.
 It is producing exclusive handloom fabrics as well as undertaking
marketing of those products.
 5628 number of highly skilled weavers with 5365 looms are working
under 40 production centres of this society.
 In addition to the above members many weavers from its 90 associated
Primary Handloom Societies in the state are also working with it.
 Its production estimates to about one fourth of the total Handloom
production of the state under the co-operative fold.
 It has a large network of marketing both inside and outside Odisha
through its 40 numbers of own sales outlets & 13 sales representatives.
 Because of its strong infrastructure network, it functions like an Apex
body within the Co-operative frame work of the State.
 With identity of excellence, it produces exclusives of Sarees, Dress
Materials, Scarves, Home Furnishings, Bed Covers, Bed Sheets, Table
Mats, and Handkerchiefs along with other coordinated sets for Drawing,
Bed and Dining Rooms with attractive tie & dye motifs along with jalla&
dobby designs in cotton, silk and tassar.
 Recently this society has developed 167 numbers of designs under Design
Reference Collection of odisha Handloom given by this 5 emanate
designer named by Mr. Bibhu Mohapatra, Mr.Rajesh Pratap Sing,

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 Mr.Rakesh kumar Thakur, Ms.AnjaliKalia & Ms.Kapurchishti having
International reputes which have good response.

Management and Board of Directors:-

The management of the society is vested upon a Board of Management

comprising of 11 elected Board of Director and 3 government nominees.

President: Sri Sambit Kumar Acharya

Managing Director: Sri Gadadhar Das

SOCITY MEMBERS
Own Members(A Classes)
SC 1524
ST 369
Other 3735
Total 5628
Associated Members (C Classes)

TOTAL 8902 of 90wcs

Shares of Sambalpuri Bastralaya:-

SHARE HOLDERS

Authorized Share Capital RS. 3000.00 lacs

Member Share RS. 25.19 lacs

Government Share

State Govt. Share RS. 2358.82 lacs

Central Govt. Share RS. 45.550 lacs

TOTAL RS. 2430.36 lacs

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Fair & Exhibition:-
State-level Handloom Exhibition:-

Sambalpuri Bastralaya HLCS Ltd. organises exhibitions in various zones

of Orissa in association with Director of Textiles & Handloom, Govt. of Orissa,
and Bhubaneswar.

National-level Handloom Exhibition:-

Sambalpuri Bastralaya HLCS Ltd. also takes active part on various textiles and
handloom exhibitions in nationwide. Sambalpuri Bastralaya organises textile
exhibitions in major metro cities i.e. New Delhi, Mumbai, Kolkata of India.

Industry:-
Roughly 16 km from the district headquarters of Sonepur, Sagarpali is a
large village hosting around 500 Bhulia (weaver) families. This is one of the
largest weaving villages in Kosal, a bastion of the Sambalpuri sari. Other areas
affluent with handloom weavers are Barpali, Tarbha, Bijepur, Patnagarh and
Bargarh.

Important handloom clusters of Odisha:-

Serial Category Name of District Name of Number

of Cluster Cluster
No. of
Cluster
1 A Bargarh Attabira, Bargarh, 8
Bheden,Barpali,
Bijepur,
Padampur,Sohela,
Bhatli

2 A Subarnapur/Sonepur Birmaharajpur, 4
Sonepur,
Ulunda,Binika

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3 A Boudh Boudh 1

4 B Balangir Bangamunda 3
Patnagarh,
Agalpur,

5 B Nuapada Khariar (Sinapali) 1

6 B Sambalpur Rengali 1

Branches in Odisha:-

Sales Representatives in Odisha

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SWOT Analysis of Sambalpuri Bastralaya:-

Strengths:-

Finance:-

 There is a rich resources of skilled weavers and designer who have won
the national and state awards.

 Ikats of Odisha have a lot of reputation and fame.

 A lot of Government supports are available particularly to the Co-

Operative Institutions and SHGs.

Market:-

 Bargarh the district head quarter and heart of the cluster supports
good marketing of local handloom cloths through number of sales outlets
and local traders.

 The main go down and most feasible sales outlets of Sambalpuri

Bastralaya HLCS Ltd, is functioning at Baragarh.

 A good percentage of the local inhabitants are the consumer of the cluster
product.

 Bargarh is well connected to major metros and other nearby cities in and
out of the state by road as well as train.

 Presence of substantial numbers of entrepreneur weavers.

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Production:-

 The activities are simple; home based, operated without power and
need small investment.

 The cluster has a rich tradition; it is one of the oldest and finest tie-dye
manufacturing clusters in the country.

 It has well known ethnic products having good demand at

National level and unlimited scope for designing.

 The designs are unique and can not be replicated in power loom weaving.

 Short production cycle leave opportunity for frequent change in design.

 Raw materials are available in plenty from the Southern states.

Weakness:-

Finance:-

 Poor Credit history.

 Lack of cash and bulk purchase of inputs in the cluster reduces the
profit margin particularly of small weavers / tiny master weavers
which lead them to become defaulter with their financer.

 Weavers Co-Operative societies are not financially sound and much

dependant on Govt. Support.

Market:-

 High cost of the fabrics sometimes compensated with quality to bring the

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 cost low.

 Lack of up to date market awareness.

 Unhealthy competition among the traders/master weavers on price of the

products.

 Share in the National markets is poor. No reach in the International

market.

Production:-

 Limited product varieties.

 Weavers are less inclined to product diversification.

 Weaving process is time consuming with low productivity.

 Looms are still traditional and little scope exists for improvement, as
most of the products are traditional.

 The State/neighbouring areas do not have spinning units to cater the need
of the cluster and Yarns are procured mostly from Southern States
causing the supply relatively at a higher cost.

 Qualitative Dyeing is lacking, as it is mostly decentralized in nature.

Loose pack of dye stuffs are sold in plenty questioning it‟s quality.

 The clusters have not accommodated some essential business servicing

facilities like scientific testing of raw material / end products,
equipment suppliers, CAD/CAM unit, adequate professional
designers/dyers, common facility centres, I/T facilities etc.

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Opportunity:-

Finance:-
 Implementation of One Time Settlement Scheme by the State
Government shall enable the Co-Operative structure to revive.

 With the introduction of SHGs, capital flow from banking

organizations/Government to the sector shall increase.

 Possibility of revival of some co-operatives under new Self Help Co-

operative Act.

Market:-

 Continuous and rising increase in the customer’s choice for cotton fabrics
across the globe.

 Potential buyers are untapped.

 Scope for participation in exhibitions and trade fairs.

 Intervention can be made for Skill up gradation training on marketing,

feedback on present market trend, colour forecast etc.

 Government support to introduce dress code in educational institutions has

opened a new avenue for better marketing of the local handloom
products, as most of the institutions shall prefer to have these verities as
their dress.

 Scope for E-Marketing exists.

Production:-

 Lot of scope for product diversification to produce furnishing, dress

material, and other value added items.

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  Introduction of new technology like introduction of improved Dobby,
CAD/CAM.

 Scope for purchase of raw materials in bulk and adoption of best

dyeing practice to reduce the cost of production.

 Avenues are open for imparting training on dyeing/designing etc.

 Setting up of common Facility Centers.

Threats:-

Finance:-

 Low margins among the tiny entrepreneurs may affect sustainability.

 High number of defaulters among individual weavers may debar them for
refinance and financing institution shall also be reluctant for finance to
individual weaver.

 Weavers as well as the bankers have always an inclination to finance

where there is provision of subsidies.

Market:-

 Production of the low cost and plain weaved materials like napkins, lungi,
and dhoti are not feasible due to its high price structure in comparisons to
such products from power loom units. Sometimes it holds good also for
sarees because of the imitation of Tie-Dye designs on power loom
products.

 The main product of the cluster is Saree and the main users of the product
are local ladies. As the new generation substitutes dress and other
Saree in place of local Saree, the local sales get affected.
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  Though qualitative the costs of the local handloom products are
relatively higher in comparison to the similar products of the other
clusters like Pochampalli, and Nuapatna (Orissa). As such similar
products of the other clusters are increasing its market.

Production:-

 In the cluster, male members generally operate the looms and the new
generations with the increase in literacy are not opting to accept weaving
as their profession.

 The biggest threat for production and the subsequent processes in

the area is the fluctuating and continuous heavy rise in the yarn price.
Observations on this have been illustrated earlier.

 Low productivity may affect sustainability in long run.

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 CHAPTER-3
Literature Review

- 30 -
LITERATURE REVIEW:-

Introduction to Distribution network:-

A distribution channel is a chain of businesses or intermediaries through

which a good or service passes until it reaches the end consumer. It can
include wholesalers, retailers, distributors and even the internet itself.
Channels are broken into direct and indirect forms, with a "direct" channel
allowing the consumer to buy the good from the manufacturer, and an "indirect"
channel allowing the consumer to buy the good from a wholesaler or retailer.

Types of Channel Intermediaries:-

There are many types of intermediaries such as wholesalers, agents,

retailers, the Internet, overseas distributors, direct marketing (from
manufacturer to user without an intermediary), and many others. The main
modes of distribution will be looked at in more detail.

1. Channel Intermediaries-Wholesalers :-

 They break down 'bulk' into smaller packages for resale by a

retailer. They buy from producers and resell to retailers. They take
ownership or 'title' to goods whereas agents do not.

 They provide storage facilities. For example, cheese manufacturers

seldom wait for their product to mature. They sell on to a wholesaler that
will store it and eventually resell to a retailer.

 Wholesalers offer reduce the physical contact cost between the producer
and consumer e.g. customer service costs, or sales force costs.

 A wholesaler will often take on the some of the marketing

responsibilities. Many produce their own brochures and use their own
telesales operations.

- 31 -
2. Channel Intermediaries-Agents :-

 Agents are mainly used in international markets.

 An agent will typically secure an order for a producer and will take a
commission. They do not tend to take title to the goods. This means that
capital is not tied up in goods. However, a 'stockist agent' will hold
consignment stock (i.e. will store the stock, but the title will remain with
the producer. This approach is used where goods need to get into a
market soon after the order is placed e.g. foodstuffs).

 Agents can be very expensive to train. They are difficult to keep control
of due to the physical distances involved. They are difficult to motivate.

3. Channel Intermediaries-Retailers :-

 Retailers will have a much stronger personal relationship with the

consumer.

 The retailer will hold several other brands and products. A consumer will
expect to be exposed to many products.

 Retailers will often offer credit to the customer e.g. electrical wholesalers,
or travel agents.

 Products and services are promoted and merchandised by the retailer.

 The retailer will give the final selling price to the product.

 Retailers often have a strong 'brand' themselves e.g. Ross and Wall-Mart
in the USA, and Alisuper, Models, and Jumbo in Portugal.

- 32 -
4. Channel Intermediaries-Internet :-

 The Internet has a geographically disperse market.

 The main benefit of the Internet is that niche products reach a wider
audience e.g. Scottish Salmon direct from an Inverness fishery.

 There are low barriers low barriers to entry as set up costs are low.

 Use e-commerce technology (for payment, shopping software, etc).

 There is a paradigm shift in commerce and consumption which benefits

distribution via the Internet.

Distribution channel of sambalpuri bastralaya:-

Dual Distribution Network

Manufacturing Provider

Distributor/ C&F
Agent
Retailer/Flagship
Stores Dealer

Consumer Consumer Business Business

Segment #1 Segment #2 Segment #1 Segment #2

- 33 -
Strategy of sambalpuri Bastralaya:-
To achieve the strong market base of the cluster, direct market linkages
with big buyers has to be improved. For such markets, quality raw materials,
design developments, good dyeing quality and diversification of products are
needed. The following points will be adhered to for strategy implementation.

 Establishment of Raw Material Bank.

 Building of consensus of co-operative institutions for procurement,

production and marketing.

 Strengthening of the existing SHGs.

 Setting up of the warping m/c for warp preparation.

 Modernisation of existing dye house of Sambalpuri Bastralaya H L C S

Ltd.

 Engagement of dyer, designer for improving quality on dyeing, designing

to suit niche market.

 Input contribution (Training on weaving, dyeing and designing) for

product diversification.

 Skill up Gradation on weaving in modernized looms.

 Establishment of CAD / CAM centre.

 Effective credit system through MFIs / Banks.

 Linkages with corporate and buying houses.

 Establishment of common marketing outlets in metros.

 Promotion of GI and protection of fake production by others

(Through GI & Handloom Mark ) .

- 34 -
Importance of distribution channel:-

 In the field of marketing, channels of distribution indicates routes or

pathways through which goods and services flow, or more from
producers to consumers.

 We can define formally distribution channels as the set of interdependent

marketing institutions participating in the marketing activities involved in
the movement the flow of goods or services from the primary producers
to ultimate consumers.

 A channel of distribution is a path traced in the direct or indirect transfer

of ownership of a product as it moves from producers to consumers.

 A channel is pipeline through which a flows on its way to the consumers.

The manager put his products into the pipeline marketing channels and it
moves towards various marketing people and reaches the ultimate
consumer which is the other end of the channels.

Components of distribution system: -

The distribution system involves two components such as below:-

1. Channels of distribution
2. Physical distribution

Channels of distribution:-

It means a process through which the products are transferred from the
producers to the ultimate consumers. It also known as marketing channels. The
channels members such as merchants agents wholesalers and retailers are
middlemen in distribution and they perform all marketing functions. These
channels members are middlemen in contribution and try perform
according to marketing functions. They facilitate the process of exchange
and create time, place and possession utilities through matching and sorting
process. Sorting enables meeting the supply with consumers demand.
- 35 -
Physical distribution:-

It looks after physical handling of goods and assures maximum

customers services. It aims at offering of delivery of right goods at the
night distribution activities cover:

 Order processing

 Packaging

 Warehousing

 Transportation

 Inventory control

 Customer service

All middlemen in distribution perform these function and they assure

putting the products within an arm's length customer's desire and demand.

Elements of distribution channels:-

Path way: distribution channels are a pathway through which products and
services flow from manufacturers to customers.

Flow: this of goods and services in sequential and usually in directional.

Composition: it is composed of intermediaries also called middlemen

who participate in the flow of voluntarily.

Objectives: although channels components largely strive to achieve mutually

acceptable objectives, the manufacturer focus is an achieving corporate
marketing objective.

- 36 -
Leader: manufacturer leads the channels components and their behaviour
is regulated by mutually acceptable code of conduct, trade customer and or
contracted stipulation. Thus the company acts as the channels caption and
manages the 'pathway'.

Functions: the intermediaries perform such functions which facilitates

transfers of ownership and possession of goods and services from marketers to
consumers.

Role of channels of distribution:-

 Channel of Distribution plays a very important role in achieving the

marketing objectives of a company. Undoubtedly, the manufacturer of
product or services creates involve utility but the distribution channels
create time and place utilities. According to Drucker, "both the market
and distribution channels are offer more crucial than the product. They
are primary; the product is secondary.

 In an ever widening market, particularly in consumer goods market

distribution channels have a distinctive role in the successful
implementation of marketing plans and strategies. These channels
performing the following marketing functions the machinery of
distribution.

 The searching out of buyers and seller.

 Matching goods to requirements of the market (merchandising).

 Offering products in the form of assortments packages of items usable

and acceptable by the consumers /users.

 Persuading and influencing the prospective buyers to favor a certain

products and its maker [personal selling /sales promotion].Implementing
pricing strategies in such a manner that would be acceptable to the buyers
and ensure effective distribution functions.

 Participating actively in the creation and establishment of market for a

new product.
- 37 -
  Offering pre- and after sales service to customer.

 Transferring of new technology to the users along with the supply of

products and playing green resolution in our country.
 Providing feels back information, marketing intelligence and sales
forecasting services for their regions their suppliers.

 Offering credit to retailers and consumers.

 Risk- bearing with references to stock holding transport.

Agent Intermediaries:-

Agent Intermediaries are those channel components who never take title to
end and do not take possession of goods but merely assist manufacturers,
merchants intermediaries and consumers in carrying out transactions of sale and
purchase. Therefore, unlike merchant intermediaries, they do not buy or sell
goods on their own account but merely bring buyers and sellers together in
order to strike a transaction. There exists an agency relationship between such
an intermediary manufacturers where in the former acts as agent and the latter
as his principal. Such agent intermediaries solicit orders, sometimes with
discretion in fixing prices, and determine the term of sale with buyers.

Agent intermediaries are usually compensable for their services by way

of commission on the value of sale affected through them or any other basis
naturally agrees upon.

Agent intermediaries may be further classified as follows:

 Sole selling agent.

 Selling agent.

 Commission agent.

- 38 -
Channel Decision:-

The first problem of channel design in whether you want direct sale to
consumer or indirect sale i.e., sale through middleman under the direct sales the
channel problem becomes problems of company organization. If the company
chooses the indirect route, it must consider such problem as the type and
number of middleman's and methods to be employed in motivating and
controlling them. The selection of these middlemen beings with the knowledge
of ultimate customers-his needs and desires for distribution services. Customer
conveniences and economics of exclusive distribution will determine the
number of middleman employed. The company must choose whether to attempt
extensive, selective or exclusive distribution or combination of all three types,
the decision is made after the careful analysis of product, customer, dealers, and
company objectives and policies, and the conflict within the channels and any
other relevant factors. The company must resolve channels and bring the
product profitably to the market.

In the chance managements a manufacturer has to make three decisions:

1. Section of a particular middleman at each level and in each market.

2. Number of middlemen at each level and in each market.

3. Selection of particular middlemen for selling goods, with or without any

exclusive rights of distribution.

Once the company has determined, its basic channel design and levels of
distribution, it has to select middlemen appoint them, motivate their efforts,
evaluate their utility periodically and if necessary, it has to reorganizing the
channels in the light of experience.

Channel choice:-

Channel decisions also require special attention as involve long term

commitments to other firms with whom marketer enters in to a contract. The
problem of selecting the most suitable channel of distribution for a product is
complex.

- 39 -
 CHAPTER-4
Research Methodology

- 40 -
OBJECTIVES OF THE RESEARCH:-

1. To study the distribution channel at Sambalpuri Bastralaya.

2. To evaluate the efficiency of distribution channel.

3. To find out the satisfaction level of dealers with the current system.

4. To find out the satisfaction level of customer with the current system.

5. To find out the satisfaction level of customer with time delivery.

6. To find out the information provided by the Sambalpuri Bastralaya is

catching the customer attention or not.

7. To find out which ecommerce sites customers used the most for Sambalpuri
bastralaya‟s product.

8. To find out Is Sambalpuri Bastralaya gives right information to the customer.

- 41 -
SAMPLING:-
Sample Size: - 100
Sample Design: - Random Sampling

Sampling Area: - Bargarh

SAMPLING METHOD:-

Sources of data collection:-

1.Primary Data:- it refers to the collection of first hand data.

1. Questionnaire
2. Observations

Questionnaire-: it is prepared and circulated to the dealers

to know their views

Observations-: it is done during the visit of the organization.

2.Secondary data:- it refers to the data which is not newly generated but
rather obtained from:-

1. Published sources
2. Sambalpuri Bastralaya website
3. Report on the study

- 42 -
CHAPTER-5
Data Analysis
And
Interpretation

- 43 -
 1. What is the medium of delivering product to customer ?

A. sale branches

B. local dealers

C. online shopping

D. others

4% 8%

19%
Sale Branches

69% Local Dealers

Online Shopping
Others

Interpretation:-
The above diagram show that 69% are sale branches, 19% are local
dealers, 4% are online shopping and 8%are others.

- 44 -
2. Are you satisfied with the time of delivery?
A) satisfactory

B) unsatisfactory

21%
Satisfactory

79% Unsatisfactory

Interpretation:-

The above diagram interprets that out of 100 people, 79% of the
people were satisfied and 21% were unsatisfied.

- 45 -
 3. Is cost of transportation affordable to you?

A. Yes

22%
Yes No

78%

Interpretation:-
The above diagram shows that the cost of transportation was
78% affordable and 22% was not affordable.

- 46 -
4. How much you are satisfied with the existing facility?

A. Satisfied

B. Unsatisfied

26% Satisfied

Unsatisfied
74%

Interpretation:-
According to the analysis it is observed that 74%of the
employees are satisfied and 26% of the employees are not satisfied
with the existing facilities.

- 47 -
 5. How much time does it takes for delivery of product after
ordering?

A. 2 Hours

B. 1-2 days

C. 2-7 days

D. 7-9 days

8% 2 Hours
1-2 Days
48% 32% 2-7 Days
7-9 Days

12%

Interpretation:-

According to the analysis it observed that 8% products are delivered

with in 2 hours and the 48% products are delivered in 7-9 days after
ordering.

- 48 -
6. Are you satisfied with the distribution channel of
Sambalpuri Bastralaya product?

A. Yes
B. No

Yes NO

45%
55%

Interpretation:-

According to the analysis it is observed that out of 100

customers, 55% customers are satisfied with the distribution
channel and 45% customers are not satisfied the distribution.

- 49 -
7. How do you rate the representative behaviour with
custemers?

A. Highly satisfied
B. Satisfied
C. Highly dissatisfied
D. Dissatisfied

10% Highly Satisfied

18%
42% Satisfied
Highly Dissatisfied
30% Dissatisfied

Interpretation:-

According to the analysis it is observed that 42% customers

are highly satisfied and 30% are satisfied and 18% customers are
highly dissatisfied and 10% are dissatisfied.

- 50 -
8. How do you rate the working Hours of the Organization?

A. Highly Satisfactory

B. Satisfactory

C. Average

D. Dissatisfactory

E. Highly Dissatisfactory

Highly Satisfactory
7%
8%
Satisfactory
9%
Avarage
55%
21% Dissatisfactory

Highly Dissatisfactory

Interpretation:-

According to the analysis it is observed that 55% employees are

Highly satisfied their working hours and 7% employees are Highly
dissatisfied their working hours of the organization.

- 51 -
9. Does the advertisements of Sambalpuri Bastralaya catching
customer‟s attention?

A. Yes

B. No

55%
45%
Yes No

Interpretation:-
The advertisements of Sambalpuri Bastralaya are caught by
only 55% of people whereas rest 45% are not getting it.

- 52 -
10. Does the customers satisfied with the designs available
in Sambalpuri Bastralaya?

A. Satisfied
B. Unsatisfied

17%

Satisfied
83%
Unsatisfied

Interpretation:-
The above diagram shows that 83% people are satisfied with the
varieties of designs available and rest 17% are not satisfied.

- 53 -
11. Which saree product customers generally purchase?

A. Cotton Saree
B. Silk Saree
C. Matha Saree

5%
10%
Cotton Saree

Silk Saree
85%
Matha Saree

Interpretation:-

85% of people used to purchase Sambalpuri Cotton Saree

where as 10% people purchase Silk Saree and rest 5% used to
purchase Matha Saree.

- 54 -
12. Which ecommerce sites customers used the most?

A. Amazon
B. Flipkart
C. Snapdeal
D. Other

15% Amazon
10% Flipkart
45%
Snapdeal
30% Other

Interpretation:-
Out of total 100 people, 45% uses Amazon, 30% uses Flipkart,
10% uses Snapdeal, rest 15% uses other ecommerce sites.

- 55 -
13. How does customer rate the quality of Sambalpuri Saree?

A. Good
B. Average
C. Poor

3%
16% Good

Average

Poor
81%

Interpretation:-
81% of customer rates the quality of Sambalpuri Bastralaya as
good, 16% as average and 3% people rate as poor.

- 56 -
 14. Which product of Sambalpuri Bastralaya Customer
like the most?

A. Saree
B. Dhoti
C. Napkin
D. Bed-cover
E. Furnishing material
F. Dress material

Saree

2% 5% 9%
Dhoti
11% Napkin

Bed-cover
73%
Dress material

Interpretation:-

73% of people like to purchase Sambalpuri Saree where as 9% people

purchase Dress material, 5% people purchase bed-cover, 11% people
purchase Dhoti and rest 2% like to purchase Napkin.

- 57 -
15. How does Customer rate the damage policy?

A. Highly Satisfied
B. Satisfied
C. Highly Dissatisfied
D. Dissatisfied

1%
2% Highly Satisfied

44% Satisfied
53%
Dissatisfied

Highly Dissatisfied

Interpretation:-
Out of total people 44% people are Highly Satisfied, 53%
people are satisfied, 1% people are Dissatisfied and 2% people are
Highly Dissatisfied.

- 58 -
 16. Does Sambalpuri Bastralaya give right information to
the customer?

A. Yes
B. No

4%

Yes No
96%

Interpretation:-
96% people are satisfied with the information provided by the
Sambalpuri Bastralaya and rest 4% are not satisfied.

- 59 -
 CHAPTER-6
Findings, Suggestions and
Recommendations

- 60 -
FINDINGS:-

1. It is observed that people are satisfied with the time of delivering the
product.

2. People are satisfied with the facility given by the organization.

3. Most of the employees are satisfied with the transportation facilities.

4. Most of the people are satisfy with the representative behaviour of

Sambalpuri Bastralaya.

5. Both the people and employee are satisfied with the working hours of the
organization.

6. The advertisements of Sambalpuri Bastralaya are mainly done through

Print Media. As a number of media like TV, Social, Internet etc. is
growing so less number of people is getting the advertisements of
Sambalpuri Bastralaya. About 55% people are not getting advertisements.

7. About 73% people like the saree of Sambalpuri Bastralaya and second is
the sambalpuri dhoti.

8. The most preferable saree product that is found is the Sambalpuri Cotton
Saree.

9. There is a large varieties and good quality of saree available which is a

positive strength while marketing.

10. It is observed that the rate of damage is negligible and people are highly
satisfied with the damage policy of the Sambalpuri Bastralaya as the
organisation giving one year warranty on every product.

11. It is found that Sambalpuri Bastralaya provides right information to the

customer about the design, colour and quality of the product.

- 61 -
SUGGESTIONS:-

1. Public relation is most important aspect for any type of business. Articles
related to new implementation, any official seminars, trade fairs,
Exhibitions and social activities should be shared via media by which
people will be aware about its activities and so that good image should be
developed and people will be connected to Sambalpuri Bastralaya.

2. To make redevelopment policy efficient and transparent, it is

advisable to convey the message to workers about their assigned works.

3. Peaceful in industrial relations is created as message is to be conveyed to

workers about marketing strategy.

4. Sambalpuri Bastralaya should concentrate to attract the dealers and to

give incentives to them.

5. The handloom profits are increasing yearly which give technical training
to employees to work efficiently in loom functional domains.

6. Sambalpuri Bastralaya should concentrate to attract the dealers.

7. Sambalpuri Bastralaya should improve their sales promotional efforts.

8. Now a day, Social media is very powerful. Millions of people use Social
Networking for sharing information, receiving information, brand
awareness and marketing. So Social Media advertising should be
implemented and definitely it will easily catch the attention of people as
Sambalpuri Bastralaya is the hallmark of Sambalpur.

9. We have seen that ecommerce business is growing very rapidly. Many

companies are selling their product through well-established ecommerce
companies like Amazon, Flipkart, and Snapdeal. In this situation we need
to use ecommerce as a medium to sell our products. Sambalpuri
Bastralaya should start focusing on them.

- 62 -
 10. Sambalpuri Bastralaya represents the Sambalpuri Tradition and culture. It
should try to spread this culture outside Odisha through advertising,
exhibitions, Seminars, Social Media etc. by which the goodwill will
increase and sales may get a boost.

CONCLUSION:-

Internship has been an excellent and rewarding experience. I have been

able to meet and come in contact with so many people associated with
distribution network of Sambalpuri Bastralaya. I am sure it will help me with
opportunities in the future. One main thing is that I have learned through this
program what is distribution network, how it works and how this network will
be improved.

For any company to reach its peak in today‟s competitive era, has to
use each and every component of distribution network. It should implement its
distribution network in most efficient and effective manner. By this, every
middleman as well as the customers will get benefits which will help
Sambalpuri Bastralaya to maximize its profit level. This is the reason why
Sambalpuri Bastralaya is one of the popular brands in market.

- 63 -
 ANNEXURE-1

BIBLIOGRAPHY:-

BOOKS:-

1. Anjaneyulu G.” Financial Management in the Co-operative Handloom

Industry". Classical Publishing Company, New Delhi, 1990.

2. Chrugupatala Baruvu Batukulu - Cheneta Sankshobham Pai Oka

Pariseelana", APCLC, 1992.

3. Das N.C.” Development of Handloom Industry". Deep & Deep

Publicatiins Pvt. Ltd, New Delhi,1893.

4. Kanataka Mukund and Sysmasundari B, “ The Cotton Handlooms of

Andra Pradesh; Traditional Industry in the New Market Economy". Sage
publications, New Delhi, 2001.

5. Laxmi Narasaiah M. & Tandava Krishna Ch., “ Crisis of Handloom

Industry". Discovery Publishing House, New Delhi, 1999.

Websites:-

www.google.com

www.sambalpuribastralaya.com

www.wekipedia.com

www.assignmentpoint.com

www.slideshare.net

- 64 -
 ANNEXURE-2

NAME-
DESIGNATION-
AGE-

QUESTIONNARIES:-

1. What is the medium of delivering product to customer?

A. sale branches
B. local dealers
C. online shopping
D. others
2. Are you satisfied with the time of delivery?
A. satisfactory
B. unsatisfactory
3. Is cost of transportation and reach is affordable to you?
A. Yes
B. No
4. How much you are satisfied with the existing facility?
A. Satisfied
B. Unsatisfied
5. How much time does it takes for delivery of product after ordering?
A. 2 Hours
B. 1-2 days
C. 2-7 days
D. 7-9 days
6. Are you satisfied with the distribution channel of Sambalpuri Bastralaya
product?
A. Yes
B. No
7. How do you rate the representative behaviour with retailer?
A. Highly satisfied
B. Satisfied
C. Highly dissatisfied
D. Dissatisfied
8. How do you rate the working Hours of the Organization?
A. Highly Satisfactory

- 65 -
 B. Satisfactory
C. Average
D. Dissatisfactory
E. Highly Dissatisfactory
9. Does the advertisements of Sambalpuri Bastralaya catching customer‟s
attention?
A. Yes
B. No
10. Does the customers satisfied with the designs available in Sambalpuri
Bastralaya?
A. Satisfied
B. Unsatisfied
11. Which saree product customers generally purchase?
A. Cotton Saree
B. Silk Saree
C. Matha Saree
12. Which ecommerce sites customers used the most?
A. Amazon
B. Flipkart
C. Snapdeal
D. Other
13. How does customer rate the quality of Sambalpuri Saree?
A. Good
B. Average
C. Poor
14. Which product of Sambalpuri Bastralaya Customer like the most?
A. Saree
B. Dhoti
C. Napkin
D. Bed-cover
E. Furnishing material
F. Dress material
15. How does Customer rate the damage policy?
A. Highly Satisfied
B. Satisfied
C. Highly Dissatisfied
D. Dissatisfied
16. Is Sambalpuri Bastralaya gives right information to the customer?
A. Yes
B. No

- 66 -