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Marketing strategy of vegetable distribution system

This research paper examines the overall marketing strategy of your consumer product of vegetable distribution system. More specifically, this study addresses the marketing strategy of Colombo district. This paper will deeply analyze the effectiveness of the vegetable distribution system and customer satisfaction on that as well as the success and failure of the machine. The study will perform by way of self completed questionnaire to recognize the households' attitudes on vegetable distribution system and awareness on that. Apart from households' responses, an interview will carry out data will analyzed giving high concentration to the prevailing practical situations and thereby the conclusions will carry on.

In the existing modern world marketing touches all of us every day of the lives. This marketing system facilitates the original exchange systems and provide us high standard of living consists of many large and small companies, where all looking for success. Therefore to emphasize the significance of marketing in this present era is important. The specific study is also predicated on the marketing aspect, which is analyzing the vegetable distribution system in a particular area. This paper especially analyzes the existing distribution system in Colombo district using the relevant theory and current news. Also I am interested in evaluating client satisfaction on that system. Through this study I could find the cost effectiveness in this study and also I could find out the success or failure on the distribution system. So that it will help to find the perfect solution is for the condition this means we will get the reason behind the failure so it will find the answer for the failure and we can recommend the best strategy.

1. 2 Background of the Study

1. 2. 1 Vegetable Distribution System in Sri Lanka

The conservative Vegetable Distribution system in Sri Lanka is having High public sector involvement, Markets were stagnate and less dynamic, Low or no processing (no value addition), High price instability Long supply chains with little integration, High wastage, Low accountability in the machine, Large numbers of supply chain partners, operating independently, High market uncertainties at both producer consumer ends. The Emergence of a new demand and responsive supply Chain increases the competition the reason behind the Changes Includes Rapidly growing urban population, rising income levels, changing socio-cultural environment, Changing taste and preferences, Explosive growth in information/communication capacity, High level of coordination/ integration of stakeholders and business orientation in the marketing system.

1. 2. 2 Vegetable Distribution System in Colombo

For Vegetables to reach the Colombo consumer it must go through many hands and frequently through lots of channels. Several participants are involved in a number of marketing, negotiation and organizational systems. Each of these participants has their own need for infrastructure, services and legislative and regulatory support. The Main The different parts of vegetable Distribution Systems in Colombo district is vegetable makes cities employing a variety of transport modes such as head loads, hand and animal drawn carts, small vehicles, large trucks, trains, and river and seagoing vessels. All these modes need to be accommodated in conditions of facilities and access. Then vegetable is usually distributed to 1 or lots of wholesale markets. Other thing is from the wholesale markets the vegetable is distributed to a variety of shops such as retail grocery stores, local food shops, and modern supermarkets. It could be seen in the next diagram.

Farmer

Transporting Agent

Commission agent at the Colombo wholesale

Retailer

Wholesaler

Consumer

(Fig 1. 1)

1. 3 Objectives of the Study

Objectives of the Investigation are,

To evaluate the performance effectiveness of the Retail Shop (in terms of customer satisfaction, Reasonable Price, Freshness and Quality product availability, Situated in convenience Place, approach to collecting information and transferring)

To uncover the cost effectiveness in Distributing Vegetables.

To identify the reasons for success and failure of performance of Distribution system.

Identifying (Marketing Strategies) Solutions for the problems identified during the investigation.

1. 4 Research Question

My research question is the Empirical Study on Vegetable Distribution System in around Colombo Metropolitan Area. I select this topic because I'm quite definitely considering marketing area. This study gives the knowledge of the existing vegetable distribution system in Colombo and exactly how effective this technique for the consumer. In Sri Lanka vegetable is a main food found in your day to day life. It has the high demand comparing to the other product. So it is important to know the system of vegetable distribution. Sri Lanka is a developing country many people are not affordable to buy high price products but it is not the issue in Sri Lanka but also most of the country. People are looking for high quality product with cheap. Effective distribution system provides people high quality product with good deal. Distribution system means the way the product provide for folks. It is very much important to know about the marketing channel because various channels used to distribute the product to the consumer. Vegetable are transformed from the farmer to wholesaler and wholesaler to retailer and retailer to consumer. It is important for the marketing channel how ability to deliver the vegetables quickly to the buyer with the lower cost.

The city of Colombo in Sri Lanka does not have dedicated wholesale markets for products with the existing three markets for grains, fruits & vegetables and fish conducting both wholesale and retail trading. Although actually recognized as wholesale markets the incorporation of retail actions due to inadequate planning of retail markets has meant that the markets are now highly congested and the whole area around and inside the markets is severely affected by traffic congestion through the morning hours. Buyers frequently spend over two hours in the market to purchase. Maintenance of greatly used facilities is difficult and the inadequate drainage has resulted in flooding and harm to road surfaces. Sri Lanka comes with an international trade deficit in vegetables, due to the fact of high imports of onion and chilies from India. The country could save much foreign exchange by encouraging domestic production of vegetables. For this, however, a systematic effort would be required to identify the vegetables best suited for production in Sri Lanka, also to identify barriers limiting their cultivation. More transport facilities will be needed for bringing production to wholesale areas and then to retail markets. This movement will result a growing traffic congestion and pollution. Higher transportation costs, a primary element of food prices, will contribute to increasing food prices for the metropolitan poor.

I am interested to identify how effective the distribution system for vegetable in Colombo area currently. How they are satisfying the client for the reason that particular area. I have to identify the client perception on the available distribution system. Whether, customer satisfied through this system. If this distribution system satisfies the client or if it's very efficient and effective I can find the reason why how it works well and the strategy of the machine. If not we need discover the reason behind the failure of the distribution system on that particular area. My hypothesis for the research is:

Ho: Vegetable Distribution System in Colombo is Effective.

H1: Vegetable Distribution System in Colombo isn't Effective.

CHAPTER 2: LITTERATURE REVIEW

It is highly important that the theoretical aspects on which the study is based are evidently understood. It really is especially emphasis on basics of marketing, distribution system etc. which can be significant for this study.

2. 1 Marketing

According to American Marketing Association (2007) Marketing is an organizational function and a couple of process for creating, communicating and delivering value to customer and for managing customer relationships in ways that benefit the organization and its own stakeholders.

2. 1. 1 Activities Included in Marketing

Marketing activities are various looked after varied because they fundamentally include everything need to deliver the product into the customers hands. The marketing activities are

Designing the product - to create a product we need to do a market research. Through that we can identify the customer needs and wants according to the customer desires we can design the merchandise.

Promoting the product - how we are going to introduce the product to the market. It offers advertising, marketing and sales communications etc.

Setting a price - it's important to capture the market producing in low cost gives high profit. People expect high quality product with cheap if we satisfy them only we can survive on the market. (Mary, [no date]).

2. 1. 2 Marketing Strategy

A online marketing strategy identifies customer groups which a company can serve well than its target competitors. Providing tailors product offerings, prices, distribution, promotional efforts, and services toward those market segments to fully capture the marketplace. Preferably, the strategy should address customer needs that provide sufficient potential profitability. A good strategy helps a business to concentrate on the target markets it can serve best. By analyzing the product portfolio and customer segment, evaluate distribution channel we can generate our own customer strategy (Angele, 2000).

2. 1. 3 Marketing Plan

When we developed a marketing strategy, it is written down as a marketing plan. The plan frequently go beyond the strategy, it offers detail such as budgets. We need to develop a marketing strategy before write a marketing plan. The online marketing strategy is to comprehend and match the functions of work at home opportunities available for sale. So we have to collect more information regarding that such as: data about the market ( size, growth, Possible client), Competitive data ( Direct competitors, product and price of competitive product) (Matt, 2010).

2. 1. 4 Target Market

Owners of smaller businesses usually have limited resources to invest on marketing. Concentrating their efforts using one or a few key market segments gives the most return from small investments. We should select to whom we will market. Target marketing method is help to reach the client efficiently. (Chelle, 1994). Additionally it is no agreed that health of the business is largely depends upon Customer behavior and attitude needs. (Margret, 1985).

2. 1. 5 The Marketing Mix

Marketing mix is a selection of the organizations to bring something or service to advertise. In order to achieve marketing goals we have to have a technique. The marketing mix elements help determine the strategy (Gummesson, 2002). The marketing mix elements are:

Place

Product

Price

Process

Promotion

Marketing Mix

People

Physical evidence

(Fig 2. 1)

Price

In marketing selecting the purchase price is one of the strategies. We have to identify the price tag on production and other cost to look for the price. Right price will maximize the profit.

Promotion

It is the best way to introduce the merchandise to the market. It includes advertisement.

Product

Product strategy may include developing a highly specialized product and high quality product to the client in a attractive way. Like special packing etc.

Place

It is the way of distributing the product to the client.

People

People on the market can't be underestimated. People have the direct effect on the merchandise perceived. People are the important element in the marketing because products are for the people. (Mind Tools 1994).

Process

It is the way in which of handling sales process and after-sale service it help to achieve online marketing strategy.

Physical Evidence

Showing the tangible product to the customer is giving the opportunity to the customer to make a decision. Customers like to know about the product through the smell and touching. Offering free trial or advertisements are physical evidence.

The marketing mix model really helps to decide how to take a new offer to the market. During that we can evaluate the current online marketing strategy (Clarity Marketing, 2005).

2. 2 Distribution System

Initially it's important to consider about what is Distribution system. Frequently there could be a chain of intermediaries; each passing the merchandise down the chain to another level, before it finally reaches the buyer. This process is known as the 'distribution chain' or the 'channel. ' Each of the elements in these chains will have their own specific needs. The Distribution system is also clear-cut as a set of interdependent organizations involved in making a product or service open to consumers or professional users. Usually a variety of institutions get excited about a distribution Channel because such specialization escalates the efficiency by marketing activities are performed.

The Main thing is to choose the distribution aspect is that marketing of a product highly be based upon its distribution efficiency, even the very best quality, Brand, Price, Promotion will not be successful if the merchandise wouldn't reach the buyer hands through the use of a good distribution system. Therefore the distribution systems are extremely important where in fact the channel management leads to attain the product availability, cost effectiveness, Promotional activity, Channel member's satisfaction etc. The cost of selling and distributing is becoming high due to high transport charges wages and commissions etc. But the benefits aren't sure it is achievable, so that it is important to attain the maximized benefit and minimized cost through good distribution systems.

Companies can design their distribution channels to make products and services open to customers in different ways. The figure below shows a few examples of channel levels for consumer marketing channels:

Consumer

Manufacturer1

Retailer

Consumer

Manufacturer

Wholesaler

Retailer

Consumer

Manufacturer

Wholesaler

Jobber

Retailer

Consumer

Manufacturer

(Fig 3. 1)

In the figure first one is named a "direct-marketing" channel, since it does not have any intermediary levels. In cases like this the maker sells directly to customers. An example of a direct marketing channel would be a factory outlet store. Many holiday companies also market direct to consumers. The rest of the channels are "indirect-marketing channels". Second an example may be contains one intermediary. In consumer markets, normally, this is a retailer. The buyer electrical goods market in the UK is typical of this arrangement whereby producers such as Sony, Panasonic, Canon etc. They sell their goods right to large retailers such as Comet, Dixons and Curry's which then sell the goods to the ultimate consumers. Third some may be contains two intermediary levels - a wholesaler and a retailer. A wholesaler typically buys and stores large levels of several producer's goods and then breaks into the bulk deliveries to provide retailers with smaller quantities. For small retailers with limited order quantities, the utilization of wholesalers makes financial sense. This arrangement will work best where the retail channel is fragmented - i. e. not dominated by a small amount of large, powerful retailers who've a motivation to cut out the wholesaler. A good example of this channel arrangement in the UK is the distribution of drugs.

Distribution is important because it influences the sale of the merchandise. It also impacts the competitiveness as well as profit because the margin is squeezed by distribution cost. Delivery is the part of activity that influencing the client satisfaction (MMC learning [no date]).

2. 2. 1 Functions of any Distribution Channel

The main function of an distribution channel is to give a link between production and consumption. Organizations form any particular distribution channel. In order to overcomes the major problems. Members of the Marketing channel perform many key functions:

Information - Gathering and distributing marketing research and intelligence information about actors and forces in the marketing environment necessary for planning and aiding exchange.

Promotion - Developing and spreading persuasive communications about an offer.

Contact - Finding and communicating with possible buyers.

Matching - Shaping and fitting the offer to the buyer's needs, including such activities as manufacturing, grading, assembling and packaging.

Negotiation - Reaching an agreement on price and other terms of the offer so that ownership or possession can be transferred.

Physical Distribution - Transporting and storing Goods

Financing - Acquiring and using funds to cover the expenses of the channel work.

Risk Taking - Assuming the risks of carrying out the channel work

The first five functions help to complete transactions; the last three help match the completed transactions.

2. 2. 2 Importance of Channel Members

Many producers lack of financial services to handle direct marketing; these direct marketing would require many producers to become middlemen for the to be able to accomplish mass-distribution economies.

The use of retailer or middlemen largely boils down to their greater efficiency to make goods available to target markets. Through their contacts, experience, specialization and scale of operation, middlemen usually offer the firm more than it can achieve on its own.

From the monetary system's viewpoint the role of middlemen or a retailer is to transform the range of products made by producers into the assortments wanted by consumers, Producers make narrow range of products in large quantities, but consumer want broad assortments of products in small quantities. In the distribution channels, middlemen however the large levels of many producers and break them into the smaller quantities and broader assortments wanted by consumers. Thus middlemen play an important role in matching supply and demand.

2. 2. 3 Goals of Logistics System

Some companies state their logistics objective as providing maximum customer support leastwise cost. Unfortunately, no logistics system can both maximize customer support and minimize distribution costs. Maximum customer service declare that fast delivery, large inventories, flexible assortments, liberal returns policies, and other services. Those activities are raising distribution cost. In contrast, minimum distribution costs imply slower delivery, smaller inventories, and larger shipping lots - which represent a lower level of overall customer service.

The goal of marketing logistics should be to provide a service to targeted level of customer at the lower cost. A firm must first research the importance of varied distribution services to customers and then set desired service levels for each and every segment. The objective is to increase profits. Therefore, the business must consider the advantages of providing high quality of product and services against the expenses. (Kotler and Amstrong 1992).

2. 3 Related Research Findings

It has discovered that as with many Europe, the food retailing industry in France is dominating powerful companies. The study targeted at examining the idea that small producers are limited or even totally lacking in the supplier portfolios of bunch merchandisers in France. The common principles employed by the retailers to select manufacturers are summarized. They have discussed using evidence from ten companies. Selecting a supplier is a critical step in a distribution firm's buying process. It is a influential factor not only in the firm's competitiveness but also in its corporate image. Within the French food distribution channel, manufacturer's products advertise directly to customers but sells to retailers. Retailers prefer to acquire from the suppliers who with the capacity of launching large advertising. These are seem to be to be the mandatory conditions for the retailer to sell large quantities of products to consumer. Because of this the supplier incurs extra cos. Since the ability to assurance stock yield depends on marketing resources and skills, French mass merchandisers concentrate mainly on assessing the marketable performance of the many manufacturers. In conclude that because they don't spend much on sales promotion programs small producers find difficulties in competing with larger producers in making sales in the distribution channel (Gilles, 1996).

Natilia (2010) states that how the food supply and distribution systems took place in Accra, Ghana compare to Colombia. His study also made some recommendation to the policymaker to increase the efficiency of market distribution system. He analyzed the success, failure and challenges of urban grocery store in Accra. He also emphasis the market reform strategies on his research.

Ross (1995) states that according to his research on online marketing strategy he found the dynamic of appliance retail business also he estimated major customer decision making criteria.

CHAPTER 3: METHODOLOGY ON THE STUDY

3. 1 Research Design

The the most suitable research method is determined by the study problem and the objectives of the study problem. According compared to that the Descriptive research method will be used to perform the research study, because the research problem is dependant on evaluating the performance of a Retailer in distributing Vegetables around Colombo Metropolitan. And also it is some sort of a simple research since it has been conducted generally to enhance the understanding of general issues in distributing vegetables. And also secondary data such as journal articles will be utilized. The reason behind selecting Descriptive Research method is basically because it describes the phenomenon as they exist and also used to identify certain home elevators the Characteristic of a specific Situation or problem. The analysis will be conducted as a qualitative study by using primary and secondary data.

The type of data will be used for this specific study is mainly primary data. THE ANALYSIS is dependant on the Colombo Metropolitan. Which means primary data for the research will be gather within the Colombo Metropolitan region. Secondary data will used to investigate the relationship between your customer satisfaction and the sales level of the vegetable. It really is a qualitative research The Data will be gather from consumers. Data will be collected by Personal Interviews with the retailer and Questionnaires are distributed to consumers of that specific area. A questionnaire will be developed with questions based on the customer's perception on Vegetables. Under interviewing people both open ended question and closed ended question includes.

The whole Colombo Metropolitan area is defined as the universe because of this study, and the sampling unit is basically the vegetable consumers of that area. The Sampling Frame this is the source list that the sample may be drawn is defined with in the Colombo metropolitan. How big is the sample is 100 vegetable consumers. The non Probability technique will be applied in order to obtain a representative sample from the sampling frame the sampling unit which is vegetable consuming individuals especially the house makers. The consumers above age of 25 are included in the sample, because according to the research topic these consumers would be the best sample to achieve the efficiency and reliability. The sample will not afford any basis for estimating the probability that each item in the population has of being contained in the sample.

3. 3 Analysis of the Empirical Data

The Data will be code and analyzed by using statistical computer software, and also the data will be analyzed using analytical techniques such as mean, mode and averages. Appropriate graphs and charts will be use to interpret and present data in this study. Since the ordinal Measurement will indicate the relative position of several objects it will be used in this investigation to rank the client satisfaction factors and other factors. Using the info from the questionnaire can conclude the results of this research. This research methodology follows the research onion.

F:\Powerpoint\pe_uk\PE083-Saunders\Final_Files\Gif\ch04\C04NF001. gif

(Sources: Mark, 2006)

(Fig 4. 1)

3. 4 Need for the Study

Competition between retailers has increased due to new super markets procedure in the encompassing area and also due to Economical Condition of the country including Cost of living, inflation, Transport cost etc. Factors which is affect the businesses profitability and also to meet up with the customers expectation and satisfaction. Therefore it is important to investigate the issues faced by the retailer in distributing vegetables and give him a solution for the issues.

The significance of this research is to identify whether the retailer can meet up with the customer expectation and satisfy them continuously and also to identify the exact problems prevailing through the research period the way the distribution system effecting and then providing solutions, analyzing the cost benefits or cost effectiveness for the consumer.

3. 5 Limitation of the Study

Being a person assignment, your time and effort exerted in to this study will be limited. Specially in selecting of the sample it's very difficult to have a complete representative sample as the population is high.

The significant insufficient secondary data specially in rivals data is a major limitation to analyze data

Because of the qualitative research it'll very much frustrating.

Financial limitation also there.

Conclusion

I can conclude that by conducting this research I could improve my knowledge in the distribution system on Colombo area. It will help me to apply these findings in other area too. I can identify the distribution system in a specific area and exactly how effective that system also how that distribution system supply the client satisfaction. Through this study I can also identify the success and failure of the distribution in a specific area and I can find the explanation for that. It will help me to identify and recommend the answer for the existing problems.

CURRICULAM -VITAE OF

L. J. Shakthivel

 

12, Longford Gardens

Hayes.

UB4 OJW

E-mail:

Contact No. 07574957290

 

CAREER OBJECTIVE

 

To become an individual who have got a wider knowledge and ability on things what she does and uses it for the enhancement of the task place and the society.

 

 

PERSONAL PROFILE

 

1. Name in Full : Lenita Jency Shakthivel

 

2. Gender : Female

 

3 Date of Birth : 3rd June 1983

 

4 Nationality : Sri Lankan

 

5. Married / Single : Single

 

6. School Attended : St. Anne's Girls Maha Vidyalaya Colombo -13.

 

 

ACADEMIC QUALIFICATIONS

Doing Post Graduate Diploma in Management Studies at Icon College, London.

B. Com (Special) Degree

University of Sri Jayewardenepura

Gangodawila, Nugegoda.

General Pass

 

 

G. C. E A/L Examination (2002)

Accounting A, Economics A, Business Studies A.

 

G. C. E O/L Examination (1999)

 

5 Distinctions include Mathematics (1&11), Religion, Tamil and Science (1). 5 Credits including Science (11), Commerce, Social, Arts and English

 

 

PROFESSIONAL QUALIFICATION

 

Computer Literacy Completed MS Office

Completed DIPLOMA IN ENGLISH at Nalravi English Language Centre.

Studied SAGE Accounting Package

Following Post graduate Diploma in Management Studies in London.

 

EXTRA AND CO-CURRICULAR ACTIVITIES

· Secured Places in athletic meets

· Secured Place in Essay Competition

· Served as a Games Captain.

· Participated in English Speech.

 

EXPERIENCE

 

I have worked at Belcon agency Ltd (Shipping Company) as an accounts trainee for 12 months.

(Book Keeping)

I been employed by at People's Bank Dam Street for 12 months under the internship program.

(Customer Serve and Cheque Clearings)

I been employed by as an Assistant Accountant at SPS Enterprises for 1 year

(Book Keeping and Customer serve)

 

 

 

I hereby affirm that the above particulars furnished by me are true and accurate to the best of my knowledge.

 

Yours faithfully

L. J. Shakthivel

 

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