CHAPTER-1

INDUSTRY PROFILE
Introduction

The food industry is a complex, global collective of diverse businesses that supplies most of
the food consumed by the world's population. Only subsistence farmers, those who survive
on what they grow, and hunter-gatherers can be considered outside the scope of the moderns
food industry.

The food Industry includes:

 Agriculture: raising crops, livestock, and seafood

 Manufacturing: agrichemicals, agricultural construction, farm machinery and supplies, seed,
etc.
 Food processing: preparation of fresh products for market, and manufacture of prepared food
products
 Marketing: promotion of generic products (e.g., milk board), new products, advertising,
marketing campaigns, packaging, public relations, etc.
 Wholesale and food distribution: logistics, transportation, warehousing
 Foodservice (which includes catering)
 Grocery, farmers' markets, public markets and other retailing
 Regulation: local, regional, national, and international rules and regulations for food
production and sale, including food quality, food security, food safety, marketing/advertising,
and industry lobbying activities
 Education: academic, consultancy, vocational
 Research and development: food technology
 Financial services: credit, insurance

Definitions

It is challenging to find an inclusive way to cover all aspects of food production and sale. The
UK Food Standards Agency describes it thus:
"...the whole food industry – from farming and food production, packaging and distribution,
to retail and catering."

The Economic Research Service of the USDA uses the term food system to describe the same
thing:
"The U.S. food system is a complex network of farmers and the industries that link to them.
Those links include makers of farm equipment and chemicals as well as firms that provide
services to agribusinesses, such as providers of transportation and financial services. The
system also includes the food marketing industries that link farms to consumers and which
include food and fiber processors, wholesalers, retailers, and foodservice establishments."
The term food industries covers a series of industrial activities directed at the processing,
conversion, preparation, preservation and packaging of foodstuffs. The food industry today
has become highly diversified, with manufacturing ranging from small, traditional, family-
run activities that are highly labor intensive, to large, capital-intensive and highly mechanized
industrial processes. Many food industries depend almost entirely on local agriculture or
fishing.

Agriculture and agronomy

Mainarticles: Agriculture and Agronomy

A soybean field in Junín, Argentina

Agriculture is the process of producing food, feeding products, fiber and other desired
products by the cultivation of certain plants and the raising of domesticated animals
(livestock). The practice of agriculture is also known as "farming". Scientists, inventors, and
others devoted to improving farming methods and implements are also said to be engaged in
agriculture. 1 in 3 people worldwide are employed in agriculture, yet it only contributes 3%
to global GDP.

Agronomy is the science and technology of producing and using plants for food, fuel, fiber,
and land reclamation. Agronomy encompasses work in the areas of plant genetics, plant
physiology, meteorology, and soil science. Agronomy is the application of a combination of
sciences. Agronomists today are involved with many issues including producing food,
creating healthier food, managing environmental impact of agriculture, and extracting energy
from plants.
Food processing
Main article: Food processing

Packaged meat in a supermarket

Food processing includes the methods and techniques used to transform raw ingredients into
food for human consumption. Food processing takes clean, harvested or slaughtered and
butchered components and uses them to produce marketable food products. There are several
different ways in which food can be produced.

One-off production: This method is used when customers make an order for something to be
made to their own specifications, for example a wedding cake. The making of one-off
products could take days depending on how intricate the design is.

Batch production: This method is used when the size of the market for a product is not clear,
and where there is a range within a product line. A certain number of the same goods will be
produced to make up a batch or run, for example a bakery may bake a limited number
of cupcakes. This method involves estimating consumer demand.

Mass production: This method is used when there is a mass market for a large number of
identical products, for example chocolate bars, ready meals and canned food. The product
passes from one stage of production to another along a production line.

Just-in-time (JIT) (production): This method of production is mainly used in restaurants. All
components of the product are available in-house and the customer chooses what they want in
the product. It is then prepared in a kitchen, or in front of the buyer as in sandwich
delicatessens, pizzerias, and sushi bars.
Industry influence

The food industry has a large influence on consumerism. Organizations, such as

The American Academy of Family Physicians (AAFP), have been criticized for accepting
monetary donations from companies within the food industry, such as Coca-Cola. These
donations have been criticized for creating a conflict of interest and favoring an interest such
as financial gains.

Regulation
See also: Category: Food law

Since World War II, agriculture in the United States and the entire national food system in its
entirety has been characterized by models that focus on monetary profitability at the expense
of social and environmental integrity. Regulations exist to protect consumers and somewhat
balance this economic orientation with public interests for food quality, food security, food
safety, animal well-being, environmental protection and health.

Wholesale and distribution

A foodservice truck at a loading dock. Trucks commonly distribute food products to

commercial businesses and organizations.

A vast global cargo network connects the numerous parts of the industry. These include
suppliers, manufacturers, ware houses, retailers and the end consumers. Wholesale
markets for fresh food products have tended to decline in importance in urbanizing countries,
including Latin America and some Asian countries as a result of the growth of supermarkets,
which procure directly from farmers or through preferred suppliers, rather than going through
markets.

The constant and uninterrupted flow of product from distribution centers to store locations is
a critical link in food industry operations. Distribution centers run more efficiently,
throughput can be increased, costs can be lowered, and manpower better utilized if the proper
steps are taken when setting up a material handling system in a warehouse.

Retail

With worldwide urbanization, food buying is increasingly removed from food production.
During the 20th century, the supermarket became the defining retail element of the food
industry. There, tens of thousands of products are gathered in one location, in continuous,
year-round supply.

Food preparation is another area where the change in recent decades has been dramatic.
Today, two food industry sectors are in apparent competition for the retail food dollar. The
grocery industry sells fresh and largely raw products for consumers to use as ingredients in
home cooking. The food service industry by contrast offers prepared food, either as finished
products, or as partially prepared components for final "assembly". Restaurants, cafes,
bakeries and mobile food trucks provide opportunities for consumers to purchase food.

Food industry technologies

The Passaic Agricultural Chemical Works, an agrochemical company, in Newark, New

Jersey, 1876

Modern food production is defined by sophisticated technologies. These include many

areas. Agricultural machinery, originally led by the tractor, has practically eliminated human
labor in many areas of production. Biotechnology is driving much change, in areas as diverse
as agrochemicals, plant breeding and food processing. Many other types of technology are
also involved, to the point where it is hard to find an area that does not have a direct impact
on the food industry. As in other fields, computer technology is also a central force, with
computer networks and specialized software providing the support infrastructure to allow
global movement of the myriad components involved.
Marketing
Main articles: Food marketing and Agricultural marketing

As consumers grow increasingly removed from food production, the role of product
creation, advertising, and publicity become the primary vehicles for information about food.
With processed food as the dominant category, marketers have almost infinite possibilities in
product creation. Of the food advertised to children on television 73% is fast or convenience
foods.

Labor and education

Some equipment at Tartu Mill, the largest grain milling company in the Baltic States. Modern
food processing factories are often highly automated and need few workers.

Until the last 100 years, agriculture was labor-intensive. Farming was a common occupation
and millions of people were involved in food production. Farmers, largely trained from
generation to generation, carried on the family business. That situation has changed
dramatically today. In America in 1870, 70-80 percent of the US population was employed in
agriculture. As of 2008, less than 2 percent of the population is directly employed in
agriculture, and about 80% of the population lives in cities. The food industry as a complex
whole requires an incredibly wide range of skills. Several hundred occupation types exist
within the food industry.
There are two kinds of external marketing environments; micro and macro. These
environments’ factors are beyond the control of marketers but they still influence the
decisions made when creating a strategic marketing strategy.

MICRO SCENARIO

The suppliers: Suppliers can control the success of the business when they hold the power.
The supplier holds the power when they are the only or the largest supplier of their goods; the
buyer is not vital to the supplier’s business; the supplier’s product is a core part of the buyer’s
finished product and/or business.

The resellers: If the product the organisation produces is taken to market by 3rd party resellers
or market intermediaries such as retailers, wholesalers, etc. then the marketing success is
impacted by those 3rd party resellers. For example, if a retail seller is a reputable name then
this reputation can be leveraged in the marketing of the product.

The customers: Who the customers are (B2B or B2C, local or international, etc.) and their
reasons for buying the product will play a large role in how you approach the marketing of
your products and services to them.

The competition: Those who sell same or similar products and services as your organisation
are your market competition, and they way they sell needs to be taken into account. How
does their price and product differentiation impact you? How can you leverage this to reap
better results and get ahead of them?

The general public: Your organisation has a duty to satisfy the public. Any actions of your
company must be considered from the angle of the general public and how they are affected.
The public have the power to help you reach your goals; just as they can also prevent you
from achieving them.
MACRO SCENARIO

Demographic forces: Different market segments are typically impacted by common

demographic forces, including country/region; age; ethnicity; education level; household
lifestyle; cultural characteristics and movements.

Economic factors: The economic environment can impact both the organisation’s production
and the consumer’s decision making process.

Natural/physical forces: The Earth’s renewal of its natural resources such as forests,
agricultural products, marine products, etc must be taken into account. There are also the
natural non-renewable resources such as oil, coal, minerals, etc that may also impact the
organisation’s production.

Technological factors: The skills and knowledge applied to the production, and the
technology and materials needed for production of products and services can also impact the
smooth running of the business and must be considered.

Political and legal forces: Sound marketing decisions should always take into account
political and/or legal developments relating to the organisation and its markets.

Social and cultural forces: The impact the products and services your organisations brings to
market have on society must be considered. Any elements of the production process or any
products/services that are harmful to society should be eliminated to show your organisation
is taking social responsibility. A recent example of this is the environment and how many
sectors are being forced to review their products and services in order to become more
environmentally friendly.

Micro and macro environments have a significant impact on the success of marketing
campaigns, and therefore the factors of these environments should be considered in-depth
during the decision making process of a strategic marketer. Considering these factors will
improve the success of your organisation’s marketing campaign and the reputation of the
brand in the long term.
 CHAPTER -2

COMPANY PROFILE

The MTR group of companies promoted by the family of MAIYAS took birth in the year
1924 with the commencement of a Restaurant in Bangalore.
"MAVALLI TIFFEN ROOMS" (as the Restaurant was named) started by offering
wholesome, clean/ hygienic and delicious South Indian dishes to Bangalore. The Restaurant
essentially offered breakfast and snacks with absolute cleanliness and service. The house
later extended its activities to catering services.
Over the years, the house MTR became very well known with respect to pure tasty and
hygienic food. The Restaurant's fame made it a spot of tourist interest and became a part of
the tourist's itinerary in Bangalore.
Later in 1976, MTR ventured into the business of retailing of Groceries and other house hold
general items by opening a Departmental Store.
MTR first brought out a packaged, processed food product- RAVA IDLI MIX also with
KARA BATH MIX. These packaged Instant Food Mixes were sold thorough the MTR.
Departmental Stores counter initially, since the products were very well accepted by the
consumers, other products such as Sam bar, Rasam Powders as well as Vanghibath, Chatney
Powder, Sago mix, Pakoda etc., were introduced. In fact, this was the beginning of MTR
efforts to market packaged Instant Food Mixes. Consumer readily accepted, he above
products sold by the Departmental Store due to the good quality which was n keeping with
the house image of MTR.
Subsequently, efforts were made to extend the distribution of the above products to few
other prominent Retail Stores in Bangalore, such as Nilgiris, Vijay Bakery, Shivananda
Store, Home Needs etc. Since the response was found to be very encouraging in terms of
Sales of the above products, a major step with respect to marketing was taken by the Group
in the year 1983.
It was during 1983 that MTR appointed Distributors in Bangalore, Madras, Hyderabad and
Vijayawada with a view to capture business opportunities in the said markets.
In the year 1984 the company launched yet another major product in the form of GULAB
JAMUN in the most modern packaging of Polyester Poly Standy pack the first of its kind in
the industry. The benefits of this packaging are being repeated till today by the brands of
MTR. The trial of progress continued with the commencement of 2 modern factories at from
Bangalore, equipped with facilities of sophisticated technology. The setting up of there
factories were completed in the year 1990-91.The facilities at the printing and Automatic
Packaging Machines. With these facilities, the company is now geared to meet production
demands of the growing packaged food market. The products range today consists of a
variety of products broadly classified under 3 categories INSTANT FOODS, SPICES, AND
MASALAS AND CONDIMENTS.
The products manufactured by MTR found good response in overseas markets as well. The
first container of condiments was exported to Kuwait in him year 1984. There has been a
steady growth in exports since then to various countries like U.S.A., U.K., Australia, New
Zealand, South Africa, Gulf and Far East Countries. The trend of growth continues with
more and more enquiries that are emanating from various countries.
The MTR Group of Companies today employs about 274 people. The Groups activities are
constantly growing with a view to explore new areas of business.
The company began with the establishment of the Mavalli Tiffin Room (commonly known as
MTR) restaurant in Bangalore in 1924 by Yagnanarayana Maiya.

In 1975 when India was under emergency, a Food Control Act was introduced which
mandated that food was to be sold at very low prices. This move made it difficult for MTR to
maintain high standards in its restaurant business and forced it to diversify into the instant
food business, selling ready-to-eat snacks such as chutneys and rasams.

In 1984, MTR expanded out of Karnataka to the southern states of Tamil Nadu and Andhra
Pradesh.

In 2007, Orkla Group, a Norwegian conglomerate, acquired the packaged foods business of
MTR Foods.
The company is currently an approximately Rs 700 core company which is growing at a
CAGR of 18%. The company has been listed as a Fortune Next 500 (India’s Top Midsize)
company for 2016.

MTR's wide range of products spans all meal occasions and offers customers Breakfast
Mixes, Masalas and Spices, Ready to Eat Meals, Dessert Mixes, Snacks, Beverages and much
more. You can shop MTR Foods products from online from the MTR online shop portal.

Breakfast Mixes: MTR is the national leader in Breakfast Mixes (according to Nielsen) in
2016 with a primarily South Indian breakfast portfolio consisting of Rava Idly, Dose, Poha,
Upma among others

Spices and Masalas: MTR is the leader in spices and masalas in Karnataka (according to
Nielsen) in 2016 with popular masalas like Sambar Powder and Puliogare Powder

Dessert Mixes: The company is also leading nationally (according to Nielsen) in the dessert
mixes category with Gulab Jamun Mix being the consumer favorite.

Ready to Eat: Defense Research and Development Organization’s (DRDO) Defence Food
Research laboratory in Mysore transferred their life sciences technology to MTR Foods for
commercial production for Ready to Eat Food. In 2000, MTR launched a range of Read to
Eat products in collaboration with celebrity Chef Jiggs Karla

Snacks: In 2011, MTR launched a sub-brand called MTR Snack Up with a range of
traditional South Indian snacks like Khara Boondi and Benne Murukku.

Beverages: MTR Foods has a range of Badam (almond) and Milk Drinks in the form of cans
and mixes that were launched in 2008.

The company has a manufacturing facility at Bangalore along with a central warehouse and
Centralized Distribution Center.

The associate companies that have come into existence are as follows:

COMPANY BUSINESS

M.T.R FOOD PRODUCTS : MANUFACTURE OF INSTANT

FOOD MIXES
M.T.R. DISTIRUITORS : MANUFACTURE OF SPECIES
P.V.T LTD AND MASALA

M.T.R ENTERPRICES : MANUFACTURE OF PICKLES

CAPITAL STRUCTURE
Capital structure of MTR food product is as under

1) The company used two sources of funds perceptual riskless debt and
ordinary shares.
2) The dividend-payout ratio is 100. That is the total earnings are paid out as
Dividend to the shareholders and there are no retained earnings.

3) The investment decision of the company is constant.

4) The firm can change its degree of leverage (capital structure) by selling shares and use
the proceeds to retire debentures and by raising more debt and reduce the equity
capital.
5) Operating profits are not expected to be growing.
6) Perceptual life of the firm.

PRODUCTS

Product is anything that can be offered to satisfy a need or want, value, cost and satisfaction.
To decide on which product delivers the most satisfaction, the guiding concept is value. It
will form an estimate of the value of each product in satisfying the needs. These three factors
are crucial to the discipline of marketing

PRODUCT PROFILE

No. Particulars Weight No. Particulars Weight

INSTANT FOODS SPICES
1. Rava Idly Mix 50gms 1 Chilly Powder 50gms
2. Rava Idly Mix 200gms 2 Chilly Powder 100gms
3. Rava Idly Mix 500gms 3 Turmeric Powder 50gms
4. Kara bath Mix 200gms 4 Turmeric Powder 100gms
5. Rasam Mix 50gms 5 Turmeric Powder 200gms
6. Rasam Mix 100gms 6 Daniya Powder 50gms
7. Rasam Mix 200gms 7 Daniya Powder 100gms
8. Rasam Mix 500gms 8 Daniya Powder 200gms
9. Dose Mix 200gms 9 Daniya Powder 500gms
10. Vada Mix 200gms 10 Jeers Powder 50gms
11. Jamun Mix 100gms 11 Jeers Powder 100gms
12. Jamun Mix 200gms 12 Jeers Powder 200gms
13. Jamun Mix 500gms 13 Jeers Powder 500gms
14. Rice Idly Mix 50gms 14 Pepper Powder 50gms
15. Rice Idly Mix 100gms 15 Pepper Powder 100gms
16. Rice Idly Mix 200gms 16 Spiced Dal Powder 100gms
17. Rice Idly Mix 500gms MASALA
18. Bisibelebath Mix 50gms 1) Chana Masala 100gms
19. Bisibelebath Mix 100gms 2) Palav Masala 50gms
20. Bisibelebath Mix 200gms 3) Palav Masala 100gms
21. Bisibelebath Mix 500gms 4) Bisibelebath Masala 50gms
22. Sam bar Mix 50gms 5) Bisibelebath Masala 100gms
23. Sam bar Mix 100gms 6) Bisibelebath Masala 200gms
24. Sam bar Mix 200gms 7) Pav Bhaji Masala 50gms

25. Sam bar Mix 500gms 8) Pav Bahji Masala 100gms

26. Rava Dose 500gms 9) Garam Masala 100gms
27. Badam Feast 500gms 10) Madras Masala 100gms
POWDERS 11) Sagu Masala 50gms
1) Sam bar Mix 50gms PICKLES
2) Sambar Mix 100gms 1) Mango Avaki (Jar) 500gms
3) Sambar Mix 200gms 2) Mango Slice 500gms
4) Rasam Powder 50gms 3) Mango Full 500gms
5) Rasam Powder 100gms 4) Lime 500gms
6) Rasam Powder 200gms 5) Gongura 500gms
7) Vangibath Mix 50gms 6) Tomato 500gms
8) Vangibath Mix 100gms 7) Mixed Veg 500gms
9) Vangibath Mix 200gms 8) Hog plum 500gms
10) Puliyogere Mix 50gms
11) Puliyogere Mix 100gms
12) Puliyogere Mix 200gms

MTR Products are broadly classified into 5 groups. They are:

 Instant food
 Powders
 Spices
  Masalas
 Pickles.

INSTANT FOODS:
There are the RTC foods I.e.,. ready to cook foods which are processed packed.
These involve two to three or four simple steps in preparing the dish after opening the
packet. Today, there is a lot of demand in the market for such foods. It includes various
mixes such as,
1. Rava Idly mix: This comes in two different packs of 200 and 500 gms.
2. Karabath mix: This comes in only 200 gms.
3. Raasam mix: This comes 50gms, 1OOgms, 200gms, 500gms.
4. Dosa mix: This comes only in 200gms.
5. Vada mix: This comes only in 200gms.
6. Jamun mix: This comes in 100, 200, and 500gms. This is the most widely
used d instant food mix.
7. Rice Idly mix: This comes 50, 100, 200 and 500gms. pack.
8. Bisibelebath mix: This comes 50, 100, 200 and 500gms pack.
9. Sambar mix: This comes in 50, 100,200 and 500gms pack.
10. Rava Dosa mix: This comes in 500gms pack.
11. Badarn Feast: This comes both in refills and in jars. Refills are of 200 and 500gms
jars are of 500gms and 1 kg.
The products manufactured by MTR found good response in overseas markets as well. The
first container of condiments was exported to Kuwait in the year 1984. There has been a
steady growth in exports since then to various countries like U.S.A Australia, New Zealand,
South Africa, Gulf and Far East countries. The trend of growth continue with more and
more enquires that me emanating from various countries.

COMPETITORS

 Haldiram’s.
 Maiyas.
 Bikanervala.
 Vestige marketing .
 The green snack.
 Balaji wafers.
VISION AND MISSION

VISSION

 Ensuring food security for citizens of the country.

 To implement the national food security act, 2013, throughout the country.
 To undertake price support operation through efficient procurement of wheat,
paddy/rice and coarse gains.
 To strength the targeted public distributions systems.
 Development /Promotion of sugar industry.
 Improvement in public service system.

MISSION

 Efficient procurement at minimum support price (MSP), storage and distribution of

food grains.
 Ensuring availability of food grains and sugar thought appropriate policy instrument;
including maintenance of buffer stocks of food grins.
 Making food grains accessible at reasonable price, especially to the weak errand
vulnerable section of the society under PDS.

SWOC ANALYSIS
Strengths:
1) MTR's national as well as international image, superior quality has provided the
cutting edge in the relatively necessary instant food mixes, spices and masalas
segment.
2) MTR products provide value for money and guarantee satisfaction.
3) MTR products found good response in overseas markets.
4) Beside these, extensive distribution network, the quality and standards of the
products, research development and the technology provides the momentum for
future growth
Weaknesses:
1) Consumers are unaware of all the products of MTR, i.e., lack of advertising about all
the products of MTR in different medial.
2) Few consumers complain that prices of MTR products are quite high compared to
other close competitors.
 3) Lack of improved packaging materials such as aluminum foils, polythene or cellular
tissues etc.
4) They do not manufacture crispy and tasty papads which are demanded by the
consumers.
5) Some products of the MTR such as chutney powder, pickles etc are moving at a very
low pace.

Opportunities:
1) MTR is one of the famous companies in South India awaiting an opportunity to enter
into more and more foreign markets.
2) The MTR group's activities are constantly growing with a view to explore new areas
of business.
3) The company also wants to enter into the production of vermicelli. For this,
construction is already made. The company is also putting its efforts for the
successful launching of new products.

Challenges

As per the survey results, Orkay and Vasu fare well in Puliyogare mix and in pickles
Some local branded pickles such as MN pickles are found to be 9tter. However MTR ranks
first in Rava Idly mix, Jamun mix, Sambar powder, Rasam powder and Badam feast. Some
products such as chutney powder, tomato pickles are moving at a very low pace.
MTR has to find out new promotional measures to move pickles and low or average moving
products.
AWARDS
 CHAPTER-3

ORGANIZATION STRUCTURE AND FUNCTIONAL

DEPARTMENT

Organization is a process of identifying and grouping of activities, assigning of duty,

delegation of authority and creating responsibility among individuals working for
organization for the purpose of accomplishment of objectives of organization.

Organization is a group of the people working together helpfully authority towards achieve
goals and objectives that equally benefit the participant and the business. Structure means it
the prototype in which a range of parts or machinery is organized or consistent. Therefore
organization construction is the blueprint of connection surrounded by various components or
parts of the organization. These prescribe the relationship surrounded by actions and place.
Since these positions are held by various persons, the structure is the relationship between
people in the organization.
FUNCTIONL AREAS OF MTR

1. Finance Department
2. Marketing Department
3. Human Resource Department
4. Sales Department
5. Logistic
6. Administration Department

Finance Department:

Finance is the life blood of any business. The south zone head office located at
BANGALORE performance most of the financial functions and therefore the finance
department of MTR, MTR Performs a few basic functions, such as a preparing the stores’
income and expenditure statement giving full particulars of all items. it also prepares the
budget for expenditure at various levels on different items.

Finance is the lifeblood of the business. Finance can be defined as the activity concerned with
the planning, raising, controlling and acquiring of funds used in the business. Finance is the
process of acquiring and utilizing funds by a business. Without proper financial management,
organization cannot achieve its objectives.
It is the master key, which provides access to all the sources for being employed in the
manufacturing and merchandising activities. It has rightly been said that business needs
money to make more money, when it is properly managed. Hence, efficient management of
every business enterprise is closely linked with efficient management of its finance.

Function of finance department:

 Preparation of annual budget

 Payment of suppliers bill.
 Payment of water bill, electricity bill and miscellaneous.
 Maintaining of sales ledger.
 Scrutiny of all payment bills.
 Working capital management.
 FINANCE MANAGER

ASSISTANT MANAGER

ACCOUNTS ASST

H.O ACCOUNTS

Advantages

 Guide for future activities

 Controlling finance
 Increases managerial efficiency
 Ascertaining adequate capital
 Maintenance of financial stability

Disadvantages

 Setting of standards
 Rigidity
 Difficulty in implementation of control measures
 Difficulty in identification of deviation

Marketing Department

Marketing concept is a customer orientation backed by integrated marketing aimed at

generating customer satisfaction as the key to satisfying organizational goals. For firm in a
order to implement the marketing concept it has to focus its attention on the customer,
ascertain his or her needs, discuss and wants before. Relationship marketing looks at
customers and plants over a longer term. It takes in to account the life time value of a
customer. The Marketing department is responsible for marketing of MTR's products through
different media like TV, Radio, newspapers, banners, placards etc. The marketing department
must decide and identify the most effective medium to attract the customers to MTR thereby
increasing the sales. The department must design creative and attractive advertisements
through which the company's products can be promoted to the customers. The company must
visit different companies and must enter in tie-ups for all its advertising campaign. The
marketing department also consists of another separate department which is known as
"Visual Merchandising". Visual merchandising is an art by which a retailer makes the store
talk to its customers. The colors, signage, lights, look and feel, everything is considered. It is
very important to figure out what is the story, the picture, the idea that is being sold to the
customers.

Marketing is a social and managerial process by which individuals and groups obtain what
they need and want through creating, offering and exchanging products of value with others.

This definition of marketing rests on the following core concept; needs, wants, and demands;
products; value, cost and satisfaction; exchange, transactions, and relationships; markets;
marketing and marketers.

NEEDS, WANTS AND DEMANDS:

A human Need is a state of felt deprivation of some basic satisfaction. Wants are desires for
specific satisfiers of these deeper needs.

Demands are wants for specific products that are backed by an ability and willingness to buy
them.

PRODUCTS:

Product is anything that can be offered to satisfy a need or want, value, cost and satisfaction.

To decide on which product delivers the most satisfaction, the guiding concept is value. It
will form an estimate of the value of each product in satisfying the needs. These three factors
are crucial to the discipline of marketing.

EXCHANGE, TRANSACTIONS AND RELATIONSHIP:

Exchange is the act of obtaining a desired product from someone by offering something in
return.
A transaction consists of a trade of values between two parties. They are the basic unit of
exchange.
Relationship marketing is the building of a unique company asset and a marketing network.
MARKETS:
Marketing means human activity taking place in relation to markets.
Marketing means working with markets to actualize potential exchanges for the purpose of
satisfying human needs and wants.

MARKETERS:
A marketer is someone seeking a resource from someone else and willing to offer something
of value in exchange.

MARKETING MIX:
The company also has to decide how to divide the total marketing among the various tools in
the marketing mix. Marketing mix is one of the key concept in modern marketing theory.
Marketing mix is the set of marketing tools that the firm uses to pursue its marketing
objectives in the target market.
It contains four factors called the four P's Product, Price. Place [i.e: distribution and
channel].

PRODUCT:
The most basic marketing mix tool is product, which stands for the firms tangible offer to
the market, including the pro-duct quality, design, features, branding and packaging.

PRICE:
The amount of money that customers have to pay for the product.

PLACE:
This is another key marketing mix tool, stand for the various activities - company undertakes
to make the product accessible and available to target customers.

PROMOTION:
The fourth marketing-mix tool stands for the various activities the company undertakes to
communicate and promote its products to the target market. The above 4P's represents the
seller's view of the marketing tools available for influencing buyers.
CONSUMERS VIEW OF MARKETING:
The role of marketing is gradually becoming a key for the economic growth of the
developing country like India, Marketing continues to be considered
Synonymous with distribution and marketing expenditures are the major target of attack in
the present inflationary situation,
The main aim of any business/ company is to satisfy customer needs to the best of its ability
and in the bargain to make reasonable profits.
As the Indian housewife now wishes to spend less and less time in kitchen and occupy in
some other work, packaged and branded foods are gaining popularity at their own pace and
this popularity can be attributed too various factors like quality, affordable prices easy
availability and wider
Many companies have realized this fact and are keenly competing with other in order to
position their products in the consumers mind.
As tile consumers are becoming more intelligent and getting awareness , the importance of
quality products, manufacturers are trying to promote only those products which maintain
national and international standards.
Usefulness of advertising is widely recognized as it gives convenient information about the
products and evaluates the confidence in the consumer about the market.
In spite of using right proportion of marketing mix, many products fail to a place in the
market and the reasons may vary from product to product.
Ultimately it is the consumer who may give a life to the product or end its life.

Advantages

 Promotes your business to a target audience

 Helps you understand your customers
 Helps brand your business

Disadvantages

 Costs of marketing
 Time and effort may not yield a return
 Lack of certainty
Human Resource Development

The HR Department of MTR is very dynamic. Employees are the biggest strength and
assets of any organization and the HR dept realize this very well. This is very evident from
the way the HR dept handles all its employees. They take utmost care to select, train,
motivate and retain all the employers. They have continuous developmental programs for all
the employees.

Organizations are made up of people and functions through people. Human resources are the
wealth of the organization. No organization can run without human being. This human being
helps the organization to achieve goals and targets of the organization. It is the total
knowledge, ability, talents and aptitude of an organization work force

Human resource management (HRM) is the understanding and application of the policy and
procedures that directly affect the people working within the project team and working group.
These policies include recruitment, retention, reward, personal development, training and
career development.

Human Resource Management is the process of binding people and organization together so
that the objectives are achieved. Organizations are not mere bricks, motor, machines or
inventories. They are people. It is the people who staff and manage organization.

HUMAN RESOURCE MANAGER

PERSONAL MANAGER

SUPERINTENDENT

ADMN.ASST-1 ADMN.ASST-2
Advantages

 Helps to build trust relation between company and employee

 Helps to develop new skills, knowledge in an employee
 Helps in utilizing all resources in a proper way
 Helps in keeping company legal in the eyes of the government

Disadvantages

 Lack of adaptability
 Expense
 Time
 Unpredictability

Logistic

Logistic is a very important division of MTR. it is responsible for procuring the stock of the
all products of the different departments. the logistic department receives the goods from the
warehouse. The warehouse of MTR for the entire south zoon is located hosakote, Karnataka.
The logistics department receives the stock of different goods and verifies the quantity and
quality of the goods with the given in the Goods Received Statement which it receives along
with the stock. Then it checks for any damage in the stock received. If there is no damage in
the stock, after recording it in the Stock Inward Register dispatches the goods to the
respective department taking the signature of the Departmental Manager On the other hand if
there is a damage in the goods or if the goods do not the details given in the Goods Received
Statement, it enters in the Stock Outward Register and send it back to the warehouse along
with a Goods Returned Note giving full information regarding the reason for returning back
the goods and the defect or damage in the goods. The logistics department receives two
truckloads of stock every day. It is the respective departmental Managers who place an order
to the Zonal head office through e-mail for stock of goods when they feel that the stock must
be replenished. The logistics department works in complete coordination with all the other
departments to ensure that the stocks are received and maintained properly products.
Customers arrive in large numbers as they realize that it is on Wednesday that products are
offered at the lowest prices.

Advantages

 Fidelity of the clients

 Much better control when the whole process is defined
  Greater unity in the group
 Commitment of the consumers
 Access to new market

Disadvantages

 Departmental wars
 Weak leadership when intervening several departments
 The slowness of reach

Administration department

The Store administration comes under the Store Manager. Its functions are store maintenance,
housekeeping, security etc. The store maintenance is concerned with the proper running of
the store Inco-ordination with all the departments. It also must ensure proper back-up supply
control in times of power cuts.

The Housekeeping is concerned with keeping all the departments of the Store clean and neat
all the time. Covers and other wastes should be properly cleaned, and the floor is swept
regularly to keep it clean The Security section is concerned with the security of the entire
store. Security department keeps a vigilant check on all the people entering and departing at
the various entry and exit points in the store.

They also maintain all the registers like employees' attendance register, stock register,
visitors' register etc. They check all customers' bill before letting them out of the store. They
ensure orderliness in the store and prevent shrinkage or pilferage of goods to minimize the
loss arising out of it. The housekeeping and security are outside agencies employed by the
store on a contract basis to take care of the respective occupations. The Administration
department also has a separate section known as ‘Information Technology. This department
is responsible for the maintenance of all the systems of the Store; all billing machines their
functioning networking with the master machine etc. If there is any problem with the
machine in any department in the store, then this department comes into function. This dept
integrates all the systems in the store and properly maintains all of them.
Advantages

 The best deal for creditors

 Ring fence against legal actions
 Allows for company restructuring
 The company survives

Disadvantages

 Cost
 Control
 Negative publicity
 Investigations
 CHAPTER-4

RESEARCH METHODILOGY

A research process is consist of stages or steps that guide the project from its conception
through the final analysis, recommendation and ultimate action. The research process
provides a systematic, planned approach to the research project and ensures that all aspect of
the project are consistent with each other. Research studies evolve through a series of steps,
each representing the answer to a key question.

OBJECTIVES
The main object of this project is to find out the effectiveness of distribution channel in the
organization..

 To understand function of distribution channel of MTR.

 To understand various classes of distribution channel.
 Major distribution channel.
 Benefits and limitation of distribution channel.
 Understand about a –distributor in more detail.

SCOPE OF STUDY
The report contains a brief discussion of the various activities of the company and its
distribution channel process.

Although MTR Ltd produces and markets beverages & food products, the present study is
confined to study to the evaluation of strategies adopted by MTR food product only. As far as
collection of primary data from consumers is concerned, the study is confined to Bangalore
and surrounding rural areas. The perceptions have been collected from respondents selected
on convenience sampling basis.

LIMITATIONS OF THE STIUDY

 The time frame was a major constraint.

 Unavailability of information.
 Some of them do not give complete information to suppliers for selfish reasons.
 Cannot be relied on to do equitable distribution.
 At times, do not want company and customers to meet.
 Tend to hoard goods and influence pricing.
 Consumers have no say in pricing or quality in a w/s dominated system.
METHODOLOGY:

This chapter aims to understand the research methodology establishing a framework of

evaluation and revolution of primary and secondary research. The technique and concept
used during primary research in order to arrive at findings, which are also dealt with and
leads to logical deduction towards the analysis and result

1.Primary Data:-

a. Personal interview with dealers and users of tractors has been used a survey technique for
collecting data. The dealers of different branches of tractor were also enquired about question
depending on circumstances. The survey has been made by using primary data and secondary
data.

b. The primary sources consist of information collected from dealers of different branches
and tractors owners and agriculturist. The secondary data has been collected from
encyclopedias, survey of Indian agriculture, Technical journals and news paper report.

2.Secondary Data:-

These are the sources that consist of data, which have been collected and compared for some
other purpose. The secondary sources consist of readily available components and already
compiled statistical statement and reports whose data may be used for study. Secondary data
have been collected from many sources. The major sources of secondary data are given
below.
 Reports/Records
 Website. .
 CHAPTER-5

DISTRIBUTION CHANNELS

DISTRIBUTION PROFILE

Management of all activities which facilitate movement and co-ordination of supply and
demand in the creation of time and place utility in goods.

The art and science of determining requirements, acquiring them, distributing them and
finally maintaining them in an operationally ready condition for their entire life

Distribution channels defined

Are sets of interdependent organizations involved in the process of making a product or

service available for use or consumption.

Whether selling products or service, marketing channel decision play a role of strategic
importance in the overall presence and success a company enjoys in the marketplace.

Distribution Channels

 Are intermediaries or middlemen.

 Exist because producers cannot reach all their consumers.
 Multiply reach and provide efficiency to the marketing process.
 Facilitate smooth flow and create time, place and possession utilities.
 Have the core competence and reach.
 Provide contract, experience, specialization and scales of operation.

TYPES OF DISTRIBUTION CHANNEL

Channels of distribution can be divided into the direct channel and the indirect channels.
Indirect channels can further be divided into one-level, two-level, and three-level channels
based on the number of intermediaries between manufacturers and customers.

 Sales: sales channels motivation buyers, shares information between company and its
consumers, negotiates fair bargains for consumers and finances the transactions.
 Delivery: delivery channel meant only for physical part of the distribution.
LISTING OF CHANNEL MEMBERS

 Company own sales team

 C&FAs and CSAs.
 Distributions, dealers, stockiest, value added re-sellers.
 Agents and brokers.
 Electronic channels.
 Wholesalers.
 Retailers

C&FAs / C&SAs

 C&FA: carrying and forwarding agent.

 C&SA: carrying and selling agent.
 Both are on contract with a company.
 Both are transporters who work between the company and its distribution.
 Collect products from the company, store in a central location, break bulk and
dispatch to distributors against indents.
 Goods belong to the company.
 C&SA also sells the goods on behalf of the company but remits proceeds after sale.

Distributors, Dealers, Stockiest, Agents

 Name denotes the extent of re-distribution done by them.

 Distributors invest in products – buy products from the company.
 Are on commission, margins or mark-up.
 May or may not get credit-but extend credit.
 Distributors cover the markets as per a beat plan. All others merely finance the
business.
 Distributors could be exclusive for a company.
 Agents bring buyer and seller together.
Wholesalers

 Operate out of the main markets.

 Deal with a number of company products of their choice.
 Are not on contract with any company.
 Sell to other wholesalers, retailers and institutions.
 Negotiate about 15 days credit from company distributors-also provide credit to their
customers.
 Operate on high volumes and low margins.

Retailers

 The final contact with consumers.

 Operate out of their shops and sell a large assortment and variety of goods.
 Located closest to consumers.
 Buy from company, distributors or wholesalers.
 Highest margins in the network.
 Provide personalized service to their customers.

Industrial products

Producer Producer

Agent /Middleman

Industrial distributor

Industrial Distributor

Industrial customer Industrial Customer

Customers may also directly purchase from company sales force.

Consumer products

Producer Producer Producer

Distributor Distributor
Retailer

Retailer
Retailer

Customer / consumer Customer / consumer

Customer / Consumer

Patterns of Distribution

 Determines the intensity of the distribution.

 Intensity decides the service level provide.
 Types :of distribution intensity:
 Intensive
 Selective
 Exclusive.

Intensive distribution

 Distribution through every reasonable outlet available- FMCG.

 Strategy is to make sure that product is available in as many outlet as possible
 Preferred for consumer, pharmaceutical products and automobile spares.

Selective distribution

 Multiple but not all outlet in the market.

 A few select outlets will be permitted to keep the products.
 Outlets selected in line with the image the company wants to project.
 Preferred for high value products.
 Keeps distribution costs lower.
Exclusive distribution

 Highly selective choice outlets-may be one outlet in an entire market.

 Could include outlets set up by companies.
 Produce wants a close watch and control on the distribution of his products.

Distribution channel strategy

 Derived from the corporate strategy and the marketing strategy.

 Steps for designing the distribution strategy are:
 Defining customer service levels.
 Distribution objectives and steps.
 Structure of the network required.
 Policy and procedure to be followed.
 Define key performance indicators.
 State critical success factors.

SWOC ANALYSIS OF THE COMPANY IN TERMS OF DISTRIBUTION CHANNEL

STRENGTH

 One of the strength of MTR food is they are using multi channel strategy.
 They make shore that products are available in as many as outlets.
 Preferred for consumer, pharmaceutical products and automobile spares.
 They have good relationship with distributers as well as customers.

WEAKNESS

 Lack of promotional strategies.

 Lack number of delivery in terms of large number of products.
 Goal incompatibilities in terms of channel members.
OPPURTUNITIES

 There is a possibility that the customer of their competitors will transfer to MTR
Foods. Improved access to potential new customers and markets. Increased sales to
existing customers.
 There is a possibility that their products will be distribution on rural areas.
 The distribution channel should adopt latest technology and tools to shift the products
in their target market.

THREATS

 Delayed of distribution caused by a large number of product or other reasons.

 Legal environment is one of their threats.
 Many competitors is in line with this kind of business.
 Taxation is introduced in the product.
 CHAPTER-6
FINDINGS, SUGGESTIONS, AND CONCLUSION

FINDINGS

This study “Effectiveness of distribution channel with the reference to MTR Pvt. Ltd.” Helps
to find out the efficiency of the distribution channel followed at the organization.

The findings as follows:

 Findings can prove that dealers agreed the company never support in the
transportation and logistics.
 It was found that more of retailers having the experience.
 It was found that more of the retailers agreed that the promptness of dealer is good.
 It was found that the retailers agreed that there will be never delay in delivering the
goods from the suppliers.
 We can find out that the customer preference of MTR Products was high.
 From the findings we know that sale of MTR Products was high.
SUGGESTIONS

 Many retailers complaint about the distribution network of MTR Product, therefore it
needs improvement for better sales.
 In the area of Patparganj and Madhu Vihar retailers complaint that the distributer is
rude and he himself retailer the product and lower price, and if the sell at the same
price, the do not get any margin. It is a area of high concern.
 Many retailer complaints that they were not aware of the product. Therefore
advertisement is needed for increased sales.
 No awareness among the customers too, therefore they always ask for Bambino or
other brands.
 Some retailer also demanded for roasted vermicelli products so it should be taken care
of.
 If the company starts associating itself with other brands, it will help strengthen the
brand image and bring in larger profits.
 MTR Product doesn’t have any special namkeen for the kids and teenagers segment,
which is a huge potential target market.
 Diversifying the namkeen product line further through constant innovation.
 Greater scope to increase market share and profits as they have just started
advertising. Opportunity to go into radio advertising leading to greater rural
penetration.
 To cut into the unbranded sector by reducing prices to capture value conscious
customers.
 Having a premium product line to capture high-end consumers.
CONCLUSION

The distribution channel means “The chain of businesses or intermediaries through

which a good or service passes until it reaches the end consumer” A distribution
channel can include wholesalers, retailers, distributors and even the internet. 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. From the project we can conclude that
a distribution channel is important factor for sales their product in a good way.Sa, every
company should maintain a good distribution channel. A company distribution channels
decision directly affects every other marketing decision. The company sales force
communication decision depends on how much training, motivation and support its
channel partners need. A company develops or acquires certain new product and may
depend on how well those products fit the capabilities of its channel members.