CHAPTER-I

SYNOPSIS

The study is concerned with “customer satisfaction of Amaravathi Sri

Venkatesa paper mills products”, and is limited to dealers only. Main

objective of the study is to find the customer (dealers) satisfaction of the

company.

Descriptive research design is used for study. Judgement sampling is

adopted for the study and the sample size is 75. Data is collected from the

dealers through questionnaires and analyzed and the findings are interpreted.

For the analysis statistical tools like sample percentage and Chi-square test

are used. Based on the analysis of findings the suggestions are given.

1
INTRODUCTION

Customers are the focus of marketing efforts. The modern marketing

concept sellout the real significance of buying behaviours. All elements of the

marketing mix are highly integrated with one another. They are seen through

the eyes of the consumers and are coordinated so as to produce the best

benefit and optimum satisfaction for the customers.

As on today, companies are facing tough competitors. The customers

have to do a better job of meeting and satisfying customers needs than their

complainers. The paper manufacturers and marketers are also no exceptions

from this dictum.

According to Philip kotler “satisfaction is a person’s feelings of

pleasure or disappointment resulting from comparing a products perceived

performance in relation to his or her expectation”. As this definition makes

clear, satisfaction is a function of perceived performance and expectations. If

the performance falls short of expectations, the customer is dissatisfied; if the

performance matches the expectations, the customer is satisfied. If the

performance exceeds the customer is highly satisfied or delighted.

2
INTRODUCTION TO THE CONCEPT

Highly satisfied customers:

 Stays loyal longer.

 Buys more as the company launches its new products and upgrades

existing products.

 Talks favorably about the company and its products.

 Pays less attention to competing brand and advertisement and is less

sensitive to price.

 Offer product/service ideas to the company.

 Costs less to serve than new customer because transactions are

reutilized.

Consumers form their expectations on the basis of message received

from seller’s side and other sources of information, which lead to

dissatisfaction. The large gap between expectation and performance, the

grater the consumer dissatisfaction.

Some consumers magnify the gap when the product is not perfect and

they are highly dissatisfied. Other consumers minimize the gap and are less

satisfied.

3
Some tools for measuring customer satisfaction

(i). complaint and suggestion system:

A customer centered organization makes it easy for its customer to

deliver suggestions and complaints. When the customer makes suggestions

and complaints it will be effectively informed to the companies. This

information flow provides the companies with many good ideas and

enables them to act more rapidly to resolve problems.

(ii). Customer satisfaction surveys

Companies should obtain a direct a measure of customer satisfaction

by concluding periodic surveys. They send questionnaires or make telephone

calls to a random sample of this recent customers and ask if they were very

satisfied, indifferent, somewhat dissatisfied or very dissatisfied when the

various aspect of the company’s performance the also solicit buyers views on

their competitor’s performance.

(iii). Lost customer analysis:

Companies should contact customers who have stopped buying /who

have switched over to another supplier as to learn why this happened. Not

only it is important to contact through exist interviews when customers first

stop buying but

4
 Also to monitor the customer loss rate, which, if increased clearly indicate

that the companies failing to satisfy its customers.

The need to satisfy customer for success in any commercial enterprise

is very obvious. The income of all commercial is delivered from the payment

received for the product and service supplied to list external customers. If

there are no customers there is no income and no business.

Initially customers can be attracted by advertisement and other efforts

by his marketing personnel and made to buy the product. If the consumers are

satisfied with the product and the service offered they continue to buy it and

remain loyal. If the customers on the other hand are not satisfied they will not

buy again and also they may not recommend others to buy. In a way

recommendation is also a motivational factor towards buying a product.

Since customers satisfaction is an important goal for marketing

program it’s necessary to establish factors which help satisfy the customers.

5
There are six basic elements for keeping customers satisfied.

♦ Quality of the product.

♦ Fair price.

♦ Excellent customer handling skills.

♦ Efficient delivery.

♦ Provision of service after sales.

♦ Serious consideration of customers compliant.

6
SCOPE OF THE STUDY

This project work is intended to analyze the customer satisfaction level

of Amaravathi Sri Venkatesa paper mills Madathukulam. The study is useful

for the company in finding and prioritizing the customer satisfaction level of

the dealers. The study also analyzes the satisfaction of the customers

regarding product sales service, quality, price, credit facilities offered by the

company to the dealers. The study will be useful for the company in analyzing

the perception of the customer regarding the market aspect of Amaravathi Sri

Venkatesa paper mills Madathukulam. The study helps to locate the area

where the company can focus its attention to raise the satisfaction level of the

customer.

7
NEED FOR THE STUDY

This report is an outcome of the study undertaken for assessing the

dealers’ satisfaction with reference to the purchase of Amaravathi Sri

Venkatesa paper mills products in terms of quality, price, credit facilities etc.

The main objective is to study the opinion of customers regarding the

performance of the papers by the company.

The data collected has been subjected to analysis and interpretation on

the basis of objective and suggestions have been given at the end, which will

help the company to improve their service for taking steps for toning up the

satisfaction of customer.

8
OBJECTIVE OF THE STUDY

Primary objective:

To study the satisfaction of the customers (dealers) of Amaravathi Sri

Venkatesa papers.

Secondary objective:

To find out the problems of the customers from the company

 To give the suggestions regarding the satisfaction of the customer on

Amaravathi Sri Venkatesa paper mils, to the company.

 To know the expectations of the dealers from the company side.

 To study the various factors that influences the dealers to

purchase the products of Amaravathi Sri Venkatesa paper mills.

9
RESEARCH METHODOLOGY

Research methodology guides the researcher to systematically do the

research and find out the causes and casual relationships and come to a

conclusion. According to Clifford woody, research comprises defining and

redefining problems, formulating hypothesis or suggested solutions

collecting, organizing and evaluating data, making decisions and reaching

conclusions and at last carefully testing the conclusions and to determine

where they fit the formulating hypothesis.

Research Design

In this research, the descriptive research design is used. The main

characteristic of that the research has no control over the variables; it can only

report what has happened or what is happening.

Descriptive research includes survey and fact-finding enquires of

different kinds. The main purpose of descriptive research is description of the

state of affairs, as it exists at present.

Sampling Unit

The sampling unit for this study is the dealers of Amaravathi Sri

Venkatesa papers.

10
Sampling Design

In this research the judgement sampling is used. The researcher’s

judgement is used for selecting items which he considers as representative of

the population. Judgement sampling is used quite frequently in quantitative

research where the desire happens to be to develop hypotheses rather than to

generalize to larger populations.

Sample size:

Sample size of the study is 75 of the population. This sampling

number has been arrived at depending upon the limited size of the population.

Methods of data collection:

Questionnaire cum interview method is used to collect the primary data.

In the questionnaire used most of the questions are closed type.

Tools for analysis:

The following statistical tools have been used for analyzing the data.

 Sampling percentage
 Pie-Diagram
 Chi-square analysis

11
SIMPLE PERCENTAGE ANALYSIS

Percentage refers to a special kind of ratio. Percentages are used in

making comparison between two or more variables to find the efficacy
of each variable. Percentages are used to describe relationships among
them replacing the common base say (100) so that comparisons can be
made easy and meaning full.

Percentage = No of respondents X 100

Total no of respondents

CHI- SQUARE ANALYSIS

Chi-square test was first used by Karl Pierson in the year 1990; the
quantity χ2 describes the magnitude of discrepancy between theory and
observation. It is defined as,

χ 2 = (Oi – Ei)2
Ei

Ei = Row total X Column total

Grand total

Where,
Oi = Observed frequencies
Ei = Expected frequencies

12
LIMITATIONS OF THE STUDY

 Since the research study has to be completed within a specified period,

a small segment of the dealers has been taken.

 During the data collection some of respondents were reluctant to give

outspoken answers.

 Data totally depends on the respondents’ view which could be biased.

 The opinion elicited from the research study cannot be taken as the

opinion of the whole population.

 The project study is confined to only the population of dealers and not

applicable to others.

13
 CHAPTER-II

INDUSTRY PROFILE

PAPER INDUSTRY IN INDIA

Paper industry in India is the 15th largest paper industry in the world. It

provides employment to nearly 1.5 million people and contributes Rs 25

billion to the government's kitty. The government regards the paper industry

as one of the 35 high priority industries of the country.

Paper industry is primarily dependent upon forest-based raw

materials. The first paper mill in India was set up at Sreerampur, West Bengal,

in the year 1812. It was based on grasses and jute as raw material. Large scale

mechanized technology of papermaking was introduced in India in early

1905. Since then the raw material for the paper industry underwent a number

of changes and over a period of time, besides wood and bamboo, other non-

conventional raw materials have been developed for use in the papermaking.

The Indian pulp and paper industry at present is very well developed and

established. Now, the paper industry is categorized as forest-based, agro-

based and others (waste paper, secondary fibber, bast fibers.

In 1951, there were 17 paper mills, and today there are about 515

units engaged in the manufacture of paper and paperboards and newsprint in

India. The pulp & paper industries in India have been categorized into large-

14
scale and small-scale. Those paper industries, which have capacity above

24,000 tonnes per annum, are designated as large-scale paper industries. India

is self-sufficient in manufacture of most varieties of paper and paperboards.

Import is confined only to certain specialty papers. To meet part of its raw

material needs the industry has to rely on imported wood pulp and waste

paper.

Indian paper industry has been de-licensed under the Industries

(Development & Regulation) Act, 1951 with effect from 17th July, 1997. The

interested entrepreneurs are now required to file an Industrial Entrepreneurs'

Memorandum (IEM) with the Secretariat for Industrial Assistance (SIA) for

setting up a new paper unit or substantial expansion of the existing unit in

permissible locations. Foreign Direct Investment (FDI) up to 100% is allowed

on automatic route on all activities except those requiring industrial licenses

where prior governmental approval is required. Growth of paper industry in

India has been constrained due to high cost of production caused by

inadequate availability and high cost of raw materials, power cost and

concentration of mills in one particular area. Government has taken several

policy measures to remove the bottlenecks of availability of raw materials and

infrastructure development. For example, to overcome short supply of raw

15
materials, duty on pulp and waste paper and wood logs/chips has been

reduced. The industry has enormous export potentials.

It is only the government that should encourage the companies in the

field to go for export with all its policy support, tax concessions, availability

of capital etc.

The paper industry has an important social role to play for the country.

Use of paper is considered as an index of cultural growth. Key social

objectives of the Government like eradicating illiteracy, making primary

education compulsory etc. are very much related to the paper industry. The

paper industry is also contributing towards fulfillments of various

requirements of the industry as a whole like information dissemination,

publicity etc. which in turn stimulate industrial growth of the country. The

paper industry has, thus, a catalytic role to play not only for the overall

growth of the industry but also for the living standards of the people. The new

millennium is going to be the millennium of the knowledge. So demand for

paper would go on increasing in times to come. Because of paper industry’s

strategic role for the society and also for the overall industrial growth, it is

necessary that the paper industry performs well.

16
Capacity, production, raw material and import

Government has completely de-licensed the paper industry w.e.f. 17th

July, 1997. The entrepreneurs are now required to file an Industrial

Entrepreneur Memorandum with the Secretariat for Industrial Assistance for

setting up a new paper mill or substantial expansion of the existing mill in

permissible locations.

The industry is a priority industry for foreign collaboration and foreign

equity participation upto 51% receives automatic approval by Reserve Bank

of India. Foreign investment even upto 100% is approved by FIPB on case to

case basis. Several fiscal incentives have also been provided to the paper

industry, particularly to those mills which are based on non-conventional raw

material.

There are, at present, about 515 units engaged in the manufacture of

paper and paperboards and newsprint in India. The country is almost self-

sufficient in manufacture of most varieties of paper and paperboards. Import,

however, is confined only to certain specialty papers. To meet part of its raw

material needs, the industry has to rely on imported wood pulp and waste

paper. The production of paper and paper board during the year 2001-02 is

17
31.62 lakhs tonnes. The installed capacity, production and import of Paper

and Paperboard of the last six years are shown in the graph.

The performance of the industry has been constrained due to high cost

of production caused by inadequate availability and high cost of raw

materials, power cost and concentration of mills in one particular area.

Several policy measures have been initiated in recent years to remove the

bottlenecks of availability of raw materials and infrastructure development.

To bridge the gap due to short supply of raw materials, duty on pulp and

waste paper and wood logs/chips have been reduced. The capacity utilization

of the industry is low at 62% as about 194 paper mills, particularly small mills

are sick and/or lying closed. Several policy measures have been initiated in

recent years.

Imports of paper and paper products were growing over the years.

However, it has decreased during 2000-2001. Actual import was 3.05 lakh

tonnes in 1997-98, 2.71 Lakh tonnes in 1998-99, 2.77 lakh tonnes in 1999-

2000 and 1.52 (Provisional) lakh tonnes in 2000-01. The import of paper and

paper products upto February, 2002 is 1.44 lakh tonnes. About 1,40,000

tonnes of paper was exported in 2000-01 mainly to the neighboring countries.

18
CONSUMPTION

Paper industry is of cyclical nature and the global paper industry being

on come back trail, the Indian paper Industry has also started looking up.

India’s per capita consumption of paper is around 4.00 kg, which is one of the

lowest in the world. With the expected increase in literacy rate and growth of

the economy, an increase in the per capita consumption of paper is expected.

The demand for upstream market of paper products like tissue paper, tea bags,

filter paper, light weight online coated paper, medical grade coated paper, etc.,

is growing up. These developments are expected to give fillip to the industry.

19
COMPANY PROFILE

The company is located in Madathukulam. The company was

inaugurated on 1960. The company commenced its production in 1968. The

number of shareholders was 38 during inception but now increased to 250

shareholders. The company is now working with blue and white color

employees. The company started functioning with 100 employees only. The

company’s products are all types of printing and writing papers.

The company is producing various types of printing and writing

papers. The products are sold to the dealers. The company gives the dealers

contracts. During the starting period of the company there were only 10

dealers. But now there are 150 dealers.

The investment for business i.e. the capital of the company during the

starting period was only Rs. 7lakhs. But now the capital of has increase to Rs.

400lakhs.

The company has 12 departments. They are pulp section, machine hall,

powerhouse, machine shop, laboratory boiler house, and finishing go down,

security, transport, cooperative stores, and canteen. Each department has their

different types of functions.

20
 Shifts have been arranged for the blue color jobs. There are 3 shifts i.e.

from 8-4, 4-12, and12-8. All workers are permanent. Bonus depends upon the

percentage of the salary. Free books are issued for the children’s of workers.

Training for the skilled employees is given with the fixed amount of

salary. Insurance and other care are given to the employees by the ESC

(Employment State Cooperation).

The company has there unions i.e. NLO (National Labour

Organization), PUMS (Palanivada Lab our Association) and INTUC

(International Tamilnadu Union community). No strike from the stating

period the company is attaining maturity stage.

The turnover of the company in the present condition is Rs.120 crores

per year. This profit of the company during its stating period as 10lakhs.

Where as the present condition of the company is earning 47lakhs where as

the present condition of the company is earning 55lakhs profit. The dealers

are given the credit period for 30 days from the date of bill if they go along

the due date then certain amount of interest should be paid to the company by

the dealers.

The transportation cost of the company incurred 10% of the material

cost.

21
 Company is having 45 Lorries all transportation done thorough Lorries

for each& every hour one load i.e. tones of the product is transacted to the

dealer. The raw materials used for the production are the waste paper, waste

cotton & baggage. The raw materials are used for the production. Now there

is production improvement & quality maintenance in the company is due to

the innovation of the technology.

The capacity of the company in their production per month is 2500

tones. Where as annually 30000 tones. The demand for the company in cen

percentage. The cost of production depends upon the demand.

Bottlenecks

i) Production: scarcity of water, raw materials, power cut, labour-

leaves

and etc.

ii) Labours: leaves, wages etc.

22
COMPETITORS

In a world of competitions, the company has a host of competitors. They are:

1) Sri Venkatesa papers & board Ltd. Madthukulam.

2) GVG paper mills.

3) BVV paper mills.

4) Dhanalakshmi paper mills ltd. Nilakotai.

5) Seshasayee paper & board ltd. Erode.

6) Aliyar paper board. Ambarampalayam.

7) Karthikeya paper board. Sathyamangalam.

8) Sudhassan paper mills ltd. Mettupalayam.

23
SISTER CONCERN OF AMARAVATHI PAPERS

The company has Rajalakshmi paper mills ltd as its sister concern which has

got the following units under its control.

1) Vishuvanadhan paper mills lid.

2) VG paper & board ltd.

24
Objectives of the Amaravathi paper mills

 Increasing the profit.

 Increasing the quality.

 Maintaining the good will.

 Maintaining the mutual relationship between lobours and Management.

 Increasing the promotional activities.

 Increasing the proper operation and productivity

 To overcome the competitors.

25
Functions of marketing department

 Approaching dealers.

 Making contact with the dealers.

 Arranging Transport facilities to dealers.

 Fixing the prices.

 Undertaking and analyzing sales promotional activities.

 Creating goodwill for the company.

 Increasing the market share.

26
Functions of A/C department

 Maintaining records.

 Identifying the company’s financial position.

 Preparing the labourers’ wages details records and manager salaries

records.

 Filling the order bills etc.

 Entering all financial transactions in the A/C book.

 Showing whether the company is gaining profit or loss.

27
Functions of HR Department

 Maintaining the labourers wage records.

 Maintaining the shift detail records.

 Identifying the Labour problems and finding solutions to the

problems.

 Training the old and new workers to improve their skills.

 Providing increments to workers based on workers performance.

 Providing all welfare measurers by the ESC to the labourers.

 Cooperating with the unions like NLO, PUMS and INTUC and there

has been no labour strike from the origin of the company

28
 INDUSTRIAL MARKETING CHANNELS

0-level 1-level 2-level 3-level

Manufacturer Manufacturer Manufacturer Manufacturer

Manufacturer Manufacturer
Representative Sales branch

Industrial Industrial Industrial

Distributors Distributors Distributors

Industrial Industrial Industrial Industrial

Customer Customer Customer Customer

29
 CHANNEL FUNCTION OF THE PRODUCT

Physical flow
Supplier Transporter
warehouse

Manufacturer

Customers

Transporter
warehouse

Dealers Transporter

30
 ORGANISATIONAL CHART

MD

GM ( operation )

Personal DGM Purchase Sales All

Officer (Technical)

Sales
Factory Manager
Security Time Canteen Coop Dept.head
Office Stores DGM

Shift
All
Watchman All Supervisor Godown
A/C’s
Workers y maistry

Maistery
Godown
Workers
Workers

31
PROFILE OF THE PRODUCT

Varieties of the product

The company is producing two types of papers

1. Printing and writing and,

2. Newsprint

Gsm = grams per square meter

1. Printing and writing papers.

a). Manifold(30gsm)- white and colour.

b). Super colour wave (44-47gsm)-blue, green and yellow.

c).cream wave (44-58gsm).

d). Super cream wave (44-58).

e).Azure laid (56, 61 and 70 gsm).

f).White duplicating [thick] (60, 70 and 72 gsm).

g). Colour duplicating (60, 70 and 72 gsm).

H).Colour printing.

i). Economic super colour wave (43, 44 and 47 gms).

32
2. Newsprint

a). News print (48 gsm).

b). Magazines

c). Journals

d). Gazette

e). Board sheets

f). Tabloids

g). Documents

h). Certificates

i). Lining papers

33
 TABLE 1

THE FACTORS THAT INFLUENCE THE DEALERS TO PURCHASE THE

AVM PAPERS

No. of percentage of
S. No Factors
respondents respondents
1 Quality 27 36
2 Price 21 28
Sales promotion
3 15 20
activities
4 Brand image 12 16
Total 75 100

Inference:

Table 1 reveals that so many dealers purchase AVM products for its quality,

price, sales promotion activities, and brand image.

Out of 75 dealers, 36% of dealers purchase AVM products for quality, 28% of

dealers for price, 20% of dealers for sales promotion activities, and 16% of

dealers for brand image and So on.

From the above analysis quality and the price encourage the dealers to go for

AVM products.

34
 CHART-1

THE FACTORS THAT INFLUENCE THE DEALERS TO PURCHASE THE

AVM PAPERS

40
36
35
30 28
Percentage of respondents

25
20
20
16
15
10
5
0
Quality price Sales promotion Brand image
activities
Factors

35
 TABLE-2

THE DEALERS OPINION ON THE FOLLOWING FACTORS

36
Inference:

Table 2 reveals the opinions of the dealers on the influencing factors like

credit facilities, distribution, sales promotion, goodwill etc.

From the table it is inferred that credit facilities available to the dealers from

the company side and the established good will of the company are the

primary factors that mostly inference the dealers to go for AVM products.

Out of 75 dealers, 32% of dealers knew the credit facilities are excellent, 35%

of dealers view as very good, 37% of dealers as good, 5% of dealers as poor

and there are no respondents for very poor category.

Regarding good will, out of 75 dealers 31% of dealers knew the good will is

excellent, 16% of dealers as very good, 21% of dealers as good, and there are

no respondents for poor and very poor.

From the above the credit facilities and good will for AVM papers mainly

influence the dealers to prefer the products of AVM brands.

37
 CHART-2

THE DEALERS OPINION ON THE FOLLOWING RATING FACTORS

40
37
35
35
32
31 31
Percentage of respondents

30 28

25 24 excellent
22
21 verygood
20 good
15 15 poor
15 13 verypoor
12
11
10
10
5
5 3
0 0 0
0
credit facilities distribution sales good will
promotion
Factors

38
 TABLE-3

THE NUMBER OF YEARS THE DEALERS ARE DEALING WITH THE

AVM BRANDS

Percentage of
S. No No. of years No. of respondents
respondents
1 Below 5 years 20 27

2 5-10 years 33 44

3 Above 10 years 22 29
Total 75 100

Inference:

Table 3 reveals that no. of years the dealers dealing with the AVM brand

papers.

Out of 75 dealers, 27% of dealers dealing with the AVM papers below 5

years, 44% of dealers dealing with the AVM papers belong to 5 to 10 years

group and, 29% of dealers dealing with the AVM papers above 10 years.

From the above most of the dealers dealing with the AVM papers belong to 5

to 10 years group.

39
 CHART-3

THE NUMBER OF YEARS THE DEALERS ARE DEALING WITH THE

AVM BRANDS

50
44
45
40
Percentage of respondents

35
29
30 27 Below 5 years
25 5-10 years

20 Above 10 years

15
10
5
0
Below 5 years 5-10 years Above 10 years

Years

TABLE-4

40
 THE OPINION OF DEALERS ON THE QUALITY OF AVM BRANDS

No. of Percentage of
S. No Performance
respondents respondents
1 Improving every year 43 57
Marginal
2 4 5
improvement
3 Declining 2 3
4 Same 26 35
Total 75 100

Inference:

Table 4 reveals the opinion of customers regarding the quality of the AVM

brand papers.

Out of 75 dealers, 57% of dealers feel that the quality is improving every

year, 5% of dealers feel that it’s stagnant, 3% of dealers feel that it’s

declining, 35% of the dealers feel that it is the same.

From the above the quality of AVM brand papers is improving every year.

41
 CHART-4

THE OPINION OF DEALERS ON THE QUALITY OF AVM BRANDS

35%
Improving every year
Marginal improvement
Declining
57% Same

3%
5%

42
 TABLE-5

SATISFACTION OF THE DEALERS WITH THE QUALITY OF THE

PRODUCT

S. No Opinion No. of respondents Percentage of respondents

1 Yes 65 87

2 No 10 13

Total 75 100

Inference:

Table 5 reveals the satisfaction level of dealers regarding the quality of the

AVM papers.

Out of 75 dealers, 87% of dealers said quality of AVM papers are satisfied,

13% of dealers said quality of AVM papers are not satisfied.

From the above most of the dealers are satisfied with the quality of AVM

brand papers.

43
 CHART-5

SATISFACTION OF THE DEALERS WITH THE QUALITY OF THE

PRODUCT

13%

Yes
No

87%

44
 TABLE-6

SATISFACTION OF THE DEALERS WITH THE DISTRIBUTION

SYSTEM

No. of Percentage of
S. No Opinion
respondents respondents
1 Yes 49 65
2 No 26 35

Total 75 100

Inference:

Table 6 reveals the satisfaction level of dealers regarding the distribution

system of AVM papers.

Out of 75 dealers, 65% of dealers said we are satisfied with the

distribution system of AVM papers, 35% of dealers said we are not satisfied

with the distribution system of AVM papers.

From the above most of the dealers are satisfied with the distribution system

of AVM papers.

45
 CHART-6

SATISFACTION OF THE DEALERS WITH THE DISTRIBUTION

SYSTEM
(in terms of percentage )

65
70
60

50 35
Percentage of
40
respondents
30

20

10
0
Yes No
opinion

46
 TABLE-7

FACTORS WHICH MAKE THE DIFFERENCE BETWEEN AVM BRAND

PAPERS AND OTHER BRANDS

No. of Percentage of
S. No Factors
respondents respondents
1 Quality 26 35

2 Price 22 29
3 Availability 19 25
4 Familiarity 8 11
Total 75 100

Inference:

Table 7 reveals the factors which make the difference between AVM brand

papers and other brand papers.

Out of 75 dealers, 35% of dealers opine quality makes the difference between

AVM brand papers and other brand papers, 29% of the dealers opine price,

and 25% of dealers opine Availability, 11% of dealers said familiarity.

From the above quality is the main factor which made the difference between

AVM brand papers and other brand papers.

47
 CHART-7

FACTORS WHICH MAKE THE DIFFERENCE BETWEEN AVM BRAND

PAPERS AND OTHER BRANDS

11%

35%
25% Quality
Price
Availability
Familiarity

29%

48
 TABLE-8

OPINION OF DEALERS ON THE REGULARITY

SUPPLY OF GOODS BY AVM

S. No Opinion No. of respondents Percentage of respondents

1 Yes 54 72

2 No 21 28

Total 75 100

Inference:

Table 8 reveals the opinion of dealers regarding regular supply of goods from

AVM papers.

Out of 75 dealers, 72% of dealers say supply the goods regularly, 28% of the

dealers said they are not supplies the goods regularly.

From the above most of the dealers getting the goods regularly from AVM

papers, they felt AVM supplying the goods regularly.

49
 CHART-8

OPINION OF DEALERS ON THE REGULARITY

SUPPLY OF GOODS BY AVM

72
80
70
60
50
Percentage of 28
40
respondents
30
20
10
0
Yes No
opinion

50
 TABLE-9

SATISFACTION OF THE DEALERS WITH THE PROMOTIONAL

ACTIVITIES

S. No Opinion No. of respondents Percentage of respondents

1 Yes 47 63

2 No 28 37

Total 75 100

Inference:

Table 9 reveals the satisfaction level of dealers with the promotional activities

of the AVM paper mills.

Out of 75 dealers, 63% of dealers are satisfied with the promotional activities

of AVM papers, 37% of dealers are not satisfied with promotional activities of

AVM papers.

From the above most of the dealers are satisfied with the promotional

activities of AVM papers.

51
 CHART-9

SATISFACTION OF THE DEALERS WITH THE PROMOTIONAL

ACTIVITIES

37%

Yes
No

63%

52
 TABLE-10

THE SEASONS FOR SELLING THE PRODUCT

No. of Percentage of
S. No Seasons
respondents respondents
1 Jan-march 17 23

2 April-June 35 47

3 July-sep 13 17

4 Oct-Dec 10 13

Total 75 100

Inference:

Table 10 reveals the seasonal sales of AVM papers, i.e. in which season there

are high sales

Out of 75 dealers, 23% of dealers said the sales is high in the period of Jan-

March, 47% of dealers said the sales is high in period of April-June, 17% of

dealers said the sales is high in period of July-Sep, 13% of dealers said the

sales is high in period of Oct-Dec.

From the above dealers register high sales during the period April to June of

each year

53
 CHART-10

THE SEASONS FOR SELLING THE PRODUCT

13%
23%

17% Jan-march
April-June
July-sep
Oct-Dec

47%

54
 TABLE-11

OPINION ON THE AVAILABILITY OF CREDIT FACILITIES PROVIDED

BY AVM

S. No opinion No. of respondents Percentage of respondents

1 Yes 64 85
2 No 11 15
Total 75 100

Inference:

Table 11 reveals the opinion of dealers regarding the availability of credit

facilities provided by AVM papers.

Out of 75 dealers, 85% of the dealers avail the credit facilities from the AVM
papers, 15% of dealers do not avail the credit facilities from AVM papers.

From the above table most of the dealers getting the credit facilities are from
the AVM papers mills.

55
 CHART-11

OPINION ON THE AVAILABILITY OF CREDIT FACILITIES PROVIDED

BY AVM

85
90

80

70
Percentage of respondents

60

50

40

30

20 15

10

Yes
No
Opinion

56
 TABLE-12

THE OPINION OF THE AVM DEALERS ON THE DIFFERENT RIVALS

FOR AVM PRODUCTS

S. No Competitors No. of respondents Percentage of respondents

1 BILT 12 16

2 TNPL 27 36

3 HPC 21 28

4 SPB 15 20

Total 75 100

Inference:

Table 12 reveals the opinion of dealers regarding the competitors of AVM

paper mills.

Out of 75 dealers, 16% of dealers felt BILT is the main competitor of AVM

papers, 36% of dealers felt TNPL is the main competitor of AVM papers, 28%

of dealers felt HPC is the main competitor of AVM papers, 20% of dealers felt

SPB is the main competitor for AVM papers.

From the above there are many competitors who are there for AVM papers but

TNPL is the main competitor for AVM.

57
 CHART-12

THE OPINION OF THE AVM DEALERS ON THE DIFFERENT RIVALS

FOR AVM PRODUCTS

40
36
35

30

25 28
percntage of
respondents 20 16
15 20

10

0
BILT
TNPL
HPC
Competitors SPB

58
 TABLE-13

EXPECTATIONS OF THE DEALERS ON THE INCENTIVES etc FROM

AVM COMPANY

No. of Percentage of
S. No Expectations
respondents respondents
1 Price offers 21 28

2 Discount offers 24 32
More
3 12 16
advertisement
4 Credit facilities 18 18

Total 75 100

Inference:

Table 13 reveals the expectation of dealers from the AVM papers.

Out of 75 dealers, 28% of dealers expect the price offers from the Avm

papers, 32% of dealers expect discount offers, 16% of dealers expect more

advertisements, and 16% of dealers expect credit facilities from the AVM

papers.

From the above table dealers are having the more expectation on price offers

and discount offers and also most of the dealers are expecting the discount

offers.

59
 CHART-13

EXPECTATIONS OF THE DEALERS ON THE INCENTIVES etc FROM

AVM COMPANY

24%
28%

Price offers
Discount offers
More advertisement
Credit facilities

16%

32%

60
 TABLE-14

THE RESPONDENTS ASSESSMENT ON THE SALES OF AVM BRANDS

S. No Assessment No. of respondents Percentage of respondents

1 Excellent 17 23
2 Very good 25 33
3 Good 31 41
4 Poor 2 3
5 Very poor 0 0
Total 75 100

Inference:

Table 14 reveals the opinion of dealers regarding the assessment of the sales

of the AVM brand papers.

Out of 75 dealers, 23% of dealers said sales is excellent, 33% of dealers said

sales is very good, 41% of dealers said sales is good, 3% of dealers said sales

is poor, 0% of dealers for very poor response.

From the above most of the dealers felt sales of AVM papers are good.

61
 CHART-14

THE RESPONDENTS ASSESSMENT ON THE SALES OF AVM BRANDS

0%
3% 23%

Excellent
41%
Very good
Good
Poor
Very poor

33%

62
 TABLE-15

THE DEALERS SUGGESTIONS TO THE COMPANY FOR

IMPROVING THE SALES PERFORMANCE OF AVM

No. of Percentage of
S. No Suggestions
respondents respondents
By improving the
1 18 24
advertisement
By providing the
2 26 35
discount
By improving the
3 16 21
quality
By increasing the
4 15 20
margin
Total 75 100

Inference:

Table 15 reveals the suggestions offered by dealers improving the sales

performance of AVM paper mills.

Out of 75 dealers, 24% of dealers felt by improving the advertisement, sales

will increase, 35% of dealers felt, by providing the discounts the sales will

increase, 21% of dealers felt, by improving the quality the sales will increase,

20% of dealers felt by increasing the margin the sales will increase.

From the above by way providing more discount and more advertisements

will improve the sales performance of AVM papers.

63
 CHART-15

THE DEALERS SUGGESTIONS TO THE COMPANY FOR

IMPROVING THE SALES PERFORMANCE OF AVM

20%
24%

By improving the
advertisement
By providing the discount

By improving the quality

By increasing the margin

21%

35%

64
 TABLE-16

THE RANKING OF BUYERS BY AVM DEALERS

S. No Factors No. of respondents Percentage of respondents

1 Officers 19 25

2 Students 27 36

3 News printers 29 39

Total 75 100

Inference:

Table 16 reveals the ranking of customers as best customers by dealers.

Out of 75 dealers, 25% of dealers said officers are our best customers, 36% of

dealers said students are our best customers, and 39% of dealers said news

printers are our best customer.

From the above the officers and news printers are best customers for the

dealers.

65
 CHART-16

THE RANKING OF BUYERS BY AVM DEALERS

25%

39%

Officers
Students
News printers

36%

66
HYPOTHESIS

Ho: There is no association between the Quality and experience in selling

the product
H1: There is an association between Quality and experience in selling the
product

Experience in selling the product

Quality

Factors Below 5 5 to 10 Above 10 Total

Years years years

Yes 15 30 20 65

No 5 3 2 10

Total 20 33 22 75

67
CHI – SQUARE TABLE

Oi Ei (Oi- Ei) (Oi- Ei)2 (Oi- Ei)2/ Ei

15 17.33 -2.33 5.43 0.31
5 2.67 2.33 5.43 2.03
30 28.6 1.4 1.96 0.07
3 4.4 -1.4 1.96 0.45
20 19.07 .093 0.86 0.05
2 2.93 -.093 0.86 0.29

(Oi- Ei)2/ Ei 3.2

Calculated value Σ (Oi- Ei) 2/ Ei = 3.2

Level of significance = 5%
Degree of freedom = (r- 1) (c-1)
= (2 – 1) (3 – 1)
= (1) (2)
= 2
Chi-square Table value = 5.991
Hence calculated value is less than the table value 3.2<±5.991
Therefore Ho is accepted at the 5% level.

Inference
Hence there is no association between the Quality and experience in selling
the product
HYPOTHESIS

68
Ho: There is no association between the distribution system and regular
supply

H1: There is an association between the distribution system and regular

supply

Distribution system
Regular supply

Factors Yes No Total

Yes 35 19 54

No 14 7 21

Total 49 26 75

χ2 = (ad-bc)2 (a+b+c+d)
(a+b) (b+c) (a+c) (b+d)

(35 X 7-19 X 14) 2 -75

49 X 26 X 21 54

33075
1444716

=0.023

From the Chi-square Table, 5% value for df 1 is 3.841

69
Clearly calculated value < table value of Chi-square

We accept the hypothesis at 5% level

Inference

Hence there is no association between the distribution system and regular

supply

70
 CHAPTER-IV

FINDINGS

The following are the findings from the various analyses

 Quality and price encourage the dealers to go for AVM products.

 Credit facilities and goodwill are the factors mainly influencing the

dealers to prefer the products of AVM brands.

 44% of dealers of AVM paper products fall within 5 to 10 years group.

 There is an improvement in the quality of AVM products every year.

 87% of customers are satisfied with the quality of the AVM paper

products.

 65% of the customers are satisfied with the distribution system adopted

by AVM paper mills.

 Quality is the main factor which makes the difference between AVM

brand papers and other brand papers.

 72% of customers are getting goods regularly from AVM paper mills.

 83% of the dealers are satisfied with the promotional activities of the

AVM paper mills.

 The customers achieve high sales during the period April to June of

every year.

71
 The dealers are satisfied with the credit facilities offered for the products

of avm paper mills.

 TNPL is the main competitor for the AVM paper mills in addition to a

host of other competitors in the field.

 32% of the customers are expecting more discount offers from AVM

paper mills.

 The sales of the AVM papers mills are generally good.

 AVM needs more advertisement to improve their sales performance.

 The best customer to AVM paper products are the officers and news

printers.

72
SUGGESTIONS

From the sample study of AVM dealers and the analysis made of

the customer satisfaction based on certain parameters, it is quite obvious

that dealers, who are the customers of AVM paper products, are quite in

general satisfied with quality, distribution system, credit facilities,

promotional measures and the prices of AVM paper products.

However, there are certain areas where the company has to concentrate

a little so that the company can rest assured of complete satisfaction to the

customers/dealers

1. The percentage of dealers who fall with 5 to 10 years of business

contact should be improved to at least 75% instead of 40%.

2. Channel of distribution can still be bettered and fine-tuned so that 80%

to 90% of the dealers are satisfied with distribution system.

3. Instead of 72% of the customers getting goods supply regularly the

company should take steps to ensure 100% of the dealers to get regular

supply of goods.

4. On the concept of quality the company should ensure 100% of

customers satisfaction.

5. The company can motivate the dealers to achieve high sales throughout

the year including the loan period by resorting to new sales strategies.

73
CONCLUSION

AVM paper mills a well established unit with 40 years of existence

is performing well in its business activities maintaining company customer

relationship intact or improving day by day thanks to a quality of its

product, credit facilities offers, a fine distributing system and reasonable

pricing policy for its products. The analysis made regarding customer

satisfaction and the findings thereof reveal that AVM is performing well

on all fronts. The company to become more competitive among the

contemporary paper mills should perform still better in terms of quality,

prices and credit facilities offered, distribution system, etc. Therefore to

reap the advantages of the economies of scale, the company should expand

its business and production thereof by investing some more capital.

Besides the mills should also diversify its paper products so that different

kinds of customers or dealers will come under the fold of the company. It

should also target the international markets with its multi type of products

through its export business.

As for the Indian paper industry is concerned, the following

measures have to be taken for the industry to become more competitive

• Improvements in infrastructural facilities like ports, roads, railways,

and communication facilities.

74
• Revision of forest policy is required for wood based paper industry so

that plantation can be raised by industry, cooperatives of farmers, and

state government. Degraded forest land should be made available to the

industry for raising plantations.

• Import duty on waste paper should be reduced.

• Duty free imports of new and second hand machinery/equipment

should be allowed for technology up gradation.

If the above measures are taken up by the government, the paper

industry will grow gradually, and the mills producing different paper

products, will become quality oriented, cost conscious, customer oriented

so that they can become highly competitive in global environment.

75