Retailers Satisfaction Study for Kanwal Food and Spices

A PROJECT REPORT ON
“RETAILER’S SATISFACTION TOWARDS
KANWAL FOOD AND SPICES PVT.LTD. ”
Offered by:
KANWAL FOOD AND SPICES
In partial fulfillment for the award
Of
THE BACHOLERS OF BUSINESS ADMINSTRATION

A STUDY ON RETAILERS SATISFACTION TOWARDS KANWAL FOOD AND SPICES
2
J&K

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Certificate
This is to certify that bearing is a student of management department of
BGSB University Rajouri.
He has successfully completed summer training at Kanwal Foods and
Spices (Anantnag). The project work entitled “Retailers Satisfaction
Towards Kanwal Food & Spices” is recorded of his original work
carried out as project training during period from 1 June to 15 July 2013.
This work has not been submitted to any other university institute.
Place: ……………. Mr VINAY KUMAR
Date: ……………. ASST. PROF. SCHOOL OF MANAGEMENT
BGSBU, RAJOURI.

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Acknowledgement
First of all I would like to express my gratitude to Almighty Allah
who bestowed his blessings on me and gave me the courage and
right type of environment for completion of my project. I owe a
deep sense of indebtedness to my parents who have always been a
perennial source of inspiration for me. I am very thankful to Mr
Mirza Rashid Ahmad Beigh (my ideal teacher) who acted as a
back bone to me in every auspect since the begning on top of that
I am very thankful to Mr Vinay Kumar who has sincerely
supported me with the valuable insights into the completion of
this project.
I am highly indebted to Mr.Farooq Amin, Director,
Marketing & Sales (KFS) for providing me an opportunity to
work with his organisation.
If words are considered to be the signs of gratitude then
let these words convey the very same my sincere
gratitude to KANWAL foods & spices Pvt. Ltd. for
providing me with such a great opportunity & giving
necessary directions on doing this project to the best of
my abilities. I am highly indebted to Mr Tawseef
Ahmad who has provided me with the necessary
information and also support extended out to me in the
completion of this project.
Besides these I would like to thank the pioneers in the
field of Marketing Management and allied fields, which shaped
my understanding through their rich and valuable contribution
in these fields. Last but not the least I would like to thank all the
retailers of KFS for their active participation and cooperation
without which it couldn’t have been possible to complete the
study.

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TO WHOM IT MAY CONCERN
This is to certify that project report entitled “Retailers satisfaction
towards KANWAL spices.” Was successfully undertaken and thereof
completed under my supervision within the stipulated time, by Peer Asif
Ahmad (26-BBA-2011) School of Management Studies Baba Ghulam Shah
Badshah University Rajouri j&k
: Further it is certified that the above mentioned project is the bonafide
work of the above mentioned student
.
General Manager
Kanwal Foods & Spices (I) Pvt. Ltd.

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Table of Contents
S.No. Page No.
Chapter One
1 Introduction 5
Chapter Two
Profiles & Review Of Literature
2 Industry Profile 12
3 Company Profile 20
4 Theoretical Background Of The Study 23
Chapter Three
Objectives & Research Methodology 26
5 Scope Of The Study 27
6 Research Methodology 28
Summary of Findings 31
7 Conclusion 35
Chapter four
8 Recommendations And Suggestions 37
9 Appendix 40
Questionnaire- I,II
10
11
Bibliography
Webliography
43

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Introduction
The Distribution variable of the marketing mix is described as the “place”
component of the Four Ps. It is the most complex and challenging part of
marketing functions. In terms of strategic impact, though, distribution
activities go well beyond the mere effects of the location where products
and services are available. It is best conceptualized as a channel because
it represents a flow of goods, services, information, and funds between
manufacturers, market intermediaries, and the end user of the product.
Channel of distribution is defined as:
“Sets of interdependent organizations involved in the process of making a
product or service available for use or consumption.”
The distribution variable in the marketing mix holds tremendous potential
for companies to achieve competitive advantage while at the same time
providing increased satisfaction to customers. Many analysts believe that
the distribution factor is underappreciated for its potential to contribute
to the efficiency and effectiveness of a company’s overall marketing
operation. As companies attempt to cultivate global markets, channel
design and strategy are critical to success in taking advantage of global
market opportunities.
The channel of distribution is an excellent vehicle for value-added
activities. Participants in the distribution channel engage in very basic
activities that provide time, place, and possession utilities to customers.
Utility is an economic term for the value, or want-satisfying ability that is
added to goods or services by organizations because the products are

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made more useful or accessible to consumers. These utilities are
economic values that translate directly into customer satisfaction. They
are essential to the overall economic role of marketing.
The Utilities created by Intermediaries are:-
A. FORM UTILITY
1. Form Utility consists of taking raw materials and
changing their form so that they become useful
products.
2. It is performed by producers; the other forms of utility
(time, place, possession, and information) are
performed by marketers.
B. TIME UTILITY—Intermediaries, such as retailers, add Time
Utility to products by making them available when they are
needed.
C. PLACE UTILITY—Intermediaries add Place Utility to products
by having them where people want them.
D. POSSESSION UTILITY—Intermediaries add Possession Utility
by doing whatever is necessary to transfer ownership from
one party to another, including providing credit.
1. Activities include delivery, installation, guarantees, and
follow-up service.
2. For those who don’t want to own goods, possession
utility makes it possible for them to use goods through
renting.

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E. INFORMATION UTILITY—Intermediaries add Information
Utility by opening two-way flows of information between
participants.
F. SERVICE UTILITY.
1. Intermediaries add Service Utility by providing fast,
friendly service during and after the sale and teaching
customers how to best use products.
2. Service utility is fast becoming the most important
utility for retailers.
In addition to the above the channel members perform the following
functions:
 Functions of exchange
 Buying
 Bulk breaking
 Negotiation
 Promotion
 Functions of physical supply
 Storage
 Materials handling
 Transportation
 Facilitating functions
 Financing
 Risk taking
 Standardizing and grading
 Market information
These are explained in detail as:
 Cost Savings in Specialization – Members of the distribution
channel are specialists in what they do and can often perform tasks

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better and at lower cost than companies who do not have
distribution experience. Marketers attempting to handle too many
aspects of distribution may end up exhausting company resources
as they learn how to distribute, resulting in the company being “a
jack of all trades but master of none.”
 Reduce Exchange Time – Not only are channel members able to
reduce distribution costs by being experienced at what they do,
they often perform their job more rapidly resulting in faster
product delivery.
 Customers Want to Conveniently Shop for Variety –Resellers within
the channel of distribution serve two very important needs: 1) they
give customers the products they want by purchasing from many
suppliers (termed accumulating and assortment services), and 2)
they make it convenient to purchase by making products available
in single location.
 Resellers Sell Smaller Quantities – Not only do resellers allow
customers to purchase products from a variety of suppliers, they
also allow customers to purchase in quantities that work for
them. Suppliers though like to ship products they produce in large
quantities since this is more cost effective than shipping smaller
amounts.
 Create Sales – Resellers are at the front line when it comes to
creating demand for the marketer’s product. In some cases
resellers perform an active selling role using persuasive techniques
to encourage customers to purchase a marketer’s product. In other

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cases they encourage sales of the product through their own
advertising efforts and using other promotional means such as
special product displays.
 Offer Financial Support – Resellers often provide programs that
enable customers to more easily purchase products by offering
financial programs that ease payment requirements. These
programs include allowing customers to: purchase on credit;
purchase using a payment plan; delay the start of payments; and
allowing trade-in or exchange options.
 Provide Information – Companies utilizing resellers for selling their
products depend on distributors to provide information that can
help improve the product. High-level intermediaries may offer
their suppliers real-time access to sales data including information
showing how products are selling by such characteristics as
geographic location, type of customer, and product location (e.g.,
where located within a store, where found on a website). If high-
level information is not available, marketers can often count on
resellers to provide feedback as to how customers are responding
to products. This feedback can occur either through surveys or
interviews with reseller’s employees or by requesting the reseller
allow the marketer to survey customers.
Keeping in view the importance of distribution channels, planning them
requires a creative, well executed strategy. A well planned marketing

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channel can become a competitive advantage and can enhance its ability
to compete in domestic as well as in international markets. Channel
strategy is concerned with the overall process of planning, setting up and
managing the operations of selected firms that are responsible for
achieving the distribution objectives of the product or service.
In developing a channel strategy, channel decision makers should
concentrate on relationships with their channel partners as well as
requirements of the target markets. Channel strategy that focuses on
building long term relationship with the channel partners is likely to lead
to a firm competitive advantage for the company. Such an advantage has
long term viability since building the relationship is a long process and is
not a strategy that can be copied easily by the competitors. Strong
channel relationships can lead to better channel planning, as channel
partners are more likely to collaborate on strategic issues and
implementation of strategies.
The focus of this study is Distribution in FMCG Sector which is considered
as one of the fastest growing industries. FMCG is the fourth largest sector
in the Indian Economy with a total market size of Rs. 60,000 crores. FMCG
sector generates 5% of total factory employment in the country and is
creating employment for three million people, especially in small towns
and rural India.
FMCG companies maintain intense distribution network. Companies
spend a large portion of their budget on maintaining distribution
networks.

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Mechanics of Distribution Channels of FMCG Sector
The supply chain of products in the FMCG market in India is one of the
longest supply chains an industry could really have. There are as many as
5 levels of intermediaries involved in the entire supply chain through
which a product passes before reaching the end consumer. What has
been observed is that even though some of these FMCG companies are
big multinationals and domestic face a major challenge of making their
products available in the market in the right quantities and in the right
time. This is simply because these companies don’t really have a wide
network of sales agents and other force which is required and is ideal for
catering their products to the markets. This aspect is taken over by
distributors, wholesalers and retailer whose margins on these products
actually double the price of these products when a final consumer buys it.
The margins kept by these intermediaries range from 2% to 5%.The
products in this industry are transported from manufacturing units via
C & F agencies or warehouse to distributors who further sell the same to
wholesalers or stockiest who finally sell it to the retailers in the market.
These products are transported either via roadways or railways within the
domestic markets and normally don’t take more than a week to reach the
retailers. FMCG products are normally a high volume ball game and
products have to essentially be available in the market at all given points
of time and at all given points of purchase and therefore the distribution
activities are highly volatile and dynamic. The supply of products takes
place virtually on a daily basis in fixed quotas or otherwise, to retailers as
per their requisitions and the anticipation of demand and the
performance of products in the recent past. All such criteria are taken into

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consideration before the quantum of products being dispatched to the
next level of intermediary. Since it’s a volume game, manufacturers make
all possible efforts to boost sales and promote their distributors to earn
more and more orders from the retailers and wholesalers. A close check is
maintained on the flow of the products on a daily, weekly, fortnightly and
monthly basis to determine the trend in the business and flow of products
and consumption. This activity also helps to find out drawbacks of the
distribution system, if any, and rectify them within time.

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Industry Profile
FMCG Overview & Outlook
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged
Goods (CPG), is products that have a quick turnover and relatively low
cost. Though the absolute profit made on FMCG products is relatively
small, they generally sell in large numbers and so the cumulative profit on
such products can be large. Items in this category include all consumables
people buy at regular intervals. Examples of FMCG generally include a
wide range of frequently purchased consumer products such as toiletries,
soap, cosmetics, teeth cleaning products, shaving products and
detergents, as well as other non-durables such as glassware, batteries,
paper products and plastic goods. FMCG may also include
pharmaceuticals, consumer electronics, packaged food products and
drinks, although these are often categorized separately. These items are
meant for daily of frequent consumption and have a high return.
A major portion of the monthly budget of each household is reserved for
FMCG products. The volume of money circulated in the economy against
FMCG products is very high, as the number of products the consumer use
is very high. Competition in the FMCG sector is very high resulting in high
pressure on margins.
FMCG companies maintain intense distribution network. Companies
spend a large portion of their budget on maintaining distribution
networks. New entrants who wish to bring their products in the national
level need to invest huge sums of money on promoting brands.

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Manufacturing can be outsourced. A recent phenomenon in the sector
was entry of multinationals and cheaper imports. Also the market is more
pressurized with presence of local players in rural areas and state brands.
FMCG is the fourth largest sector in the Indian Economy with a total
market size of Rs. 60,000 crores. FMCG sector generates 5% of total
factory employment in the country and is creating employment for three
million people, especially in small towns and rural India.
Characteristics of FMCG in India
 Branding: Creating strong brands is important for FMCG companies
and they devote considerable money and effort in developing
bands. With differentiation on functional attributes being difficult
to achieve in this competitive market, branding results in consumer
loyalty and sales growth.
 Distribution Network: Given the fragmented nature of the Indian
retailing industry and the problems of infrastructure, FMCG
companies need to develop extensive distribution networks to
achieve a high level of penetration in both the urban and rural
markets. Once they are able to create a strong distribution
network, it gives them significant advantages over their
competitors.
 Contract Manufacturing: As FMCG companies concentrate on
brand building, product development and creating distribution
networks, they are at the same time outsourcing their production
requirements to third party manufacturers. Moreover, with several
items reserved for the small scale industry and with these SSI units

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enjoying tax incentives, the contract manufacturing route has
grown in importance and popularity.
Large Unorganized Sector: The unorganized sector has a presence in
most product categories of the FMCG sector. Small companies from this
sector have used their locational advantages and regional presence to
reach out to remote areas where large consumer products have only
Analysis of FMCG Sector
Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural
areas.
3. Presence of well-known brands in FMCG sector.
Weaknesses:
1. Lower scope of investing in technology and achieving economies of
scale, especially in small sectors
2. Low exports levels
3. “Me-too” products, which illegally mimic the labels of the established
brands. These products narrow the scope of FMCG products in rural and
semi-urban market.
Opportunities:
1. Untapped rural market
2. Rising income

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Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slowdown in rural demand
3. Tax and regulatory structure
Long Term Outlook
The Indian FMCG sector with a market size of US$13.1 billion is the fourth
largest sector in the economy. A well-established distribution network,
intense competition between the organized and unorganized segments
characterizes the sector. FMCG Sector is expected to grow by over 60% by
2010. That will translate into an annual growth of 10% over a 5-year
period. It has been estimated that FMCG sector will rise from around Rs
56,500 crores in 2005 to Rs 92,100 crores in 2010.
With the presence of 12.2% of the world population in the villages of
India, the Indian rural FMCG market is something no one can overlook.
Increased focus on farm sector will boost rural incomes, hence providing
better growth prospects to the FMCG companies. Better infrastructure
facilities will improve their supply chain. FMCG sector is also likely to
benefit from growing demand in the market. Because of the low per
capita consumption for almost all the products in the country, FMCG
companies have immense possibilities for growth. And if the companies
are able to change the mindset of the consumers, i.e. if they are able to
take the consumers to branded products and offer new generation
products, they would be able to generate higher growth in the near
future. It is expected that the rural income will rise in 2007, boosting
purchasing power in the countryside.

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However, the demand in urban areas would be the key growth
driver over the long term. Also, increase in the urban population, along
with increase in income levels and the availability of new categories,
would help the urban areas maintain their position in terms of
consumption. At present, urban India accounts for 66% of total FMCG
consumption, with rural India accounting for the remaining 34%.
However, rural India accounts for more than 40% consumption in major
FMCG categories such as personal care, fabric care, and hot beverages. In
urban areas, home and personal care category, including skin care,
household care and feminine hygiene, will keep growing at relatively
attractive rates. Within the foods segment, it is estimated that processed
foods, bakery, and dairy are long-term growth categories in both rural and
urban areas.
The following factors make India a competitive player in FMCG sector:
 Availability of raw materials: Because of the diverse agro-climatic
conditions in India, there is a large raw material base suitable for
food processing industries. India is the largest producer of livestock,
milk, sugarcane, coconut, spices and cashew and is the second
largest producer of rice, wheat and fruits &vegetables. India also
produces caustic soda and soda ash, which are required for the
production of soaps and detergents. The availability of these raw
materials gives India the location advantage.
 Low cost labour gives India a competitive advantage. India’s labour
cost is amongst the lowest in the world, after China & Indonesia.

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Low labour costs give the advantage of low cost of production.
Many MNC’s have established their plants in India to outsource for
domestic and export markets.
 Presence across value chain: Indian companies have their presence
across the value chain of FMCG sector, right from the supply of raw
materials to packaged goods in the food-processing sector. This
brings India a more cost competitive advantage.
A major sector of FMCG consists of the food processing industry which is
one of the key drivers of the economy and is the focus of this project.
Introducing India’s Food Industry
The food industry is the complex, global collective of diverse businesses
that together supply much of the food energy consumed by the world
population.
The food processing industry is one of the largest industries in India. It is
ranked fifth in terms of production, consumption, export and expected
growth. Food Processing Industry is widely recognized as a 'sunrise
industry' in India having huge potential for uplifting agricultural economy,
creation of large scale processed food manufacturing and food chain
facilities, and the resultant generation of employment and export
earnings. India has enormous growth potential from its current status of
being the world's second largest food producer to be the world's number
on producer. Food Processing Industry is of enormous significance for
India's development because of the vital linkages and synergies that it
promotes between the two pillars of the economy, namely Industry and
Agriculture. Food processing covers a spectrum of products from sub-

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sector comprising agriculture, horticulture, Plantation, animal husbandry
and fisheries. Essentially, the food industry involves the commercial
movement of food from field to fork. While India has an abundant supply
of food, the food processing industry is still nascent: only two per cent of
fruit and vegetables; and 15 per cent of milk produced are processed.
Despite, of this the processed food industry ranks fifth in size in the
country, representing 6.3 per cent of GDP. It accounts for 13 per cent of
the country’s exports and 6 per cent of total industrial investment. The
industry size is estimated at US$ 70 billion, including US$ 22 billion of
value added products. This sector has been attracting FDI across different
categories.
With the overwhelming success of the Green and White Revolution, India
is now fervently poised for the Food Revolution that will ensure
agricultural diversification and large investments in food processing.
The entries of multinationals, aggressive rise of commodity branding and
low cost of technology are changing the economics of the Indian food
industry. The rise of aggressive regional players making forays into
categories where entry barriers are low and a boom in Indian Fast Moving
Consumer Goods (FMCG) markets and the rising need for these products
are the key reasons for this growth in food business.
Within food processing industry comes another sub sector i.e., Spices.
Indian Spice Market
India is famous for its spices that are widely used in industries like
pharmaceutical, neutraceuticals, perfumery, toiletry and cosmetics. India
is one of the major suppliers of pepper to a large number of countries.

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Growth in Spice Trade
The Indian spice market has shown remarkable growth in spice and
culinary herbs exports. Indian spices manufacturers are making
substantial efforts to improve the quality of spices backed up by
technological advancement in order to tap the international market.
Advanced technologies such as carbon dioxide extraction, cryogrinding,
encapsulation of spice oil is being undertaken to ensure high quality of
spices and their derivatives.
The country is providing value added products and thus achieved repute
in the international community. With a focus on strong R&D, the Indian
Manufacturers are developing new products, implementing organic
method of production for providing organic spices and herbs, which
command a 10-30% premium.
Spice Industry Overview
Spice industry has been witnessing phenomenal growth rates both in the
international and domestic sector. The growth in this sector can be
attributed to the change in the lifestyle patterns of the consumers all over
the world. The shift in the consumption trend toward natural products
has also contributed to the increased global demand of spices and
culinary herbs. Spice and derivatives market is booming because these
products find applications in a number of industries including
pharmaceutical, medicine, beverages, food processing, personal hygiene
products to name a few.
Indian Industry Overview
India has traditionally been known for its spice and culinary herb
production. It is one of the largest spice producing and consuming

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country. Its strategic location, climatic conditions, advanced production
processes and availability of cheap labour makes it advantageous for the
producers to ensure large scale production of quality spices and herbs.
India's Share in the Global Spice Market
The Indian spice market is booming with a substantial increase in exports
over the past few years. India accounts for nearly 45% and 30% in terms
of volume and value in the world spice trade. The booming global spice
market also poses good opportunities for the Indian spice industry to
provide quality spices at competitive prices. India faces stiff competition
from China, Malaysia and Pakistan in terms of pricing of the products.
Manufacturers should therefore ensure consistency in supply, product
quality, pricing and marketing strategy to increase the share in exports.

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Company Profile
Kanwal Foods and Spices (I) Pvt. Ltd.
Kanwal Foods and Spices (I) Pvt. Ltd. is ISO 9001:2000,UKAS and DAS
certified also authorized for grinding and processing of spices under
Agmark, with a group turnover of Rs.50 Crores (2009-10). With a
range of over 77 products and having won many awards at the
national level including the National Award for Quality Excellence,
Gem of India Award, Rashtriya Gaurav Award, Udoyog Patria award
besides others, it is one of the leaders in the FMCG sector in the
subcontinent, committed to provide quality products to its consumers.
Kanwal Foods and Spices (I) Pvt. Ltd. processes and packages its hygienic
and quality controlled products through its state-of-the-art industrial
units, located in various parts of the country, including the national capital
of India, Delhi. The registered office of the company is located at
Anantnag and corporate office is located in Delhi.
The company provides spices for the domestic markets under the
brand name “Kanwal” and “Alamin” in the international market.
The company is registered with the Spices Board, GOI and Indian
Spices Exporters Forum and exports its quality products to Saudi Arabia,
Baharain, Kuwait, Oman, Dubai etc. The supply chain network consisting
customer, retailer, distributor, manufacturer and supplier is closely linked
through an efficient flows of information and finance to ensure smooth
functionality.
Kanwal Foods and Spices (I) Pvt. Ltd. has a research and development
wing which would provide services vis-à-vis aiding research and
development, market analysis, analysis of trends and currents in various

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sectors of the local market, research and analysis into the horticulture,
floriculture as also the broader contours of the agricultural sector. The
research and analysis wing of Kanwal Foods and Spices is aiming to avail
services of some of the most prestigious and credible inspection, testing
and certification institutes. The team of professionals engaged with the
R&D Division of Kanwal Foods and Spices equipped with fully-automatic
state-of-the-art paraphernalia has a team of professionals working with it.
The Company provides direct The company aims to expand its
product base and has setup a state-of-the-art packaged drinking water
processing and packaging plant, which is at par with the best in South
Asia. The packaged drinking water is sold under the brand name “Treish”
(Drinking Water). Treish is an outcome of dedicated and concerted 5-year-
long R&D with involvement of leading names in the “water world” across
the globe, turned out to be an instant success, captivating the markets in
Kashmir and drawing great attention from the national and international
markets. Treish is BIS (Bureau of Indian Standards) certified and its
quality and composition are almost at par with the world-leading brands
Evion and Volvic. The plant is epoxy-coated and has fully automatic
machines for processing and packaging. The R&D team of the plant is
working on the production of some soft drinks which will hit production
soon.
employment to around 700 people and indirect employment to more
than 5000 people. This human resource base is also an efficient chain for
dissemination and collection of information and customer inputs. The
distributor chain of the company is an efficient medium for introduction

26
of new products. The sales and marketing wing of the company is well-
networked with separate sales and marketing divisions which work in
tandem over calibrated information webs. The marketing and sales staff
personnel are equipped with mobile paraphernalia to stay in touch while
they are out in the field. The sales and marketing personnel collect
information from the markets regarding the sales of own and other
company products, which is pooled into a database that helps the
company stay up-to-date on market trends and customer satisfaction. The
quality control cell is fully accessible to the marketing field personnel and
any problems faced by them in the market vis-à-vis the products are
processed by the cell within the shortest possible time. The accounts
section along with a fully-equipped inventory section keep track of cash
and product inflows and outflows, enabling the greatest utilization of
resources and proper tracking of assets.
The company consists of the following Divisions / SBU’s:
 National Masala Mills -J&K
 National Masala Export Division (I) - J&K
 National Masala Mills –Delhi
 National Masala Export Division (II)-Bangalore
 Kanwal Agro Food Division- J&K
 Safa Waters Pvt. Ltd. - J&K (Treish)
 Kanwal Spices Pvt. Ltd. - J&K
 Asia Tea Company- J&K
 Al-Sehah Enterprises- J&K

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The company has been catering to the local market for the past 32 years
and has earned the sole trust of the consumers. Today the brand name
itself, “Kanwal”, is synonymous with quality, purity and aroma.

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 NATIONAL MASALA MILLS-J&K
National Masala Mills started as a water mill on the banks of river jehlum
catering to the local market with the motto to provide ‘honest spice’ to
people cherished local aroma to add colors and taste to the fabled
kashmiri cuisine.
National Masala Mills had grown into a into an Industry with more than
35 crores (about 7 million US dollars) annual turnover with more than
80% market share in Jammu and Kashmir, providing direct employment to
200 employees and indirect employment to more than 1500 families.
National Masala Mills has also export divisions in the state of Jammu and
Kashmir, Delhi, as well as in Bangalore.
 Kanwal agro food division-J&k
Kanwal Foods and Spices Pvt. Ltd. Plays a significant supportive role in
diversification and commercialization of agriculture through fruit and
vegetable processing, improving value addition in the agricultural
production of Jammu and Kashmir, helps in generating employment
including rural employment, income and production of agro food
products for export.

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 Safa waters Pvt. Ltd.-j&K (TREISH)
TREISH is a Kashmiri word meaning “Drinking Water”. On Monday, 17
July, 2006; SAFA WATERS PVT. LTD…… the branch or division of KANWAL
FOODS AND SPICES PVT. LTD. Inaugurated “TREISH” at Anantnag
(ISLAMABAD) Kashmir.
TREISH mineral water is processed from Kashmir valley to provide purest
bottled drinking water. It can become a universal call to quench one’s
thrist.
TREISH is glaciated water from river “LIDDER” used to bottle TREISH is
believed to be among the best waters available in Kashmir.
The company aims to expand its product base and has setup a
state-of-the-art packaged drinking water processing and packaging plant,
which is at par with the best in South Asia. The packaged drinking water is
sold under the brand name “Treish” (Drinking Water). Treish is an
outcome of dedicated and concerted 5-year-long R&D with involvement
of leading names in the “water world” across the globe, turned out to be
an instant success, captivating the markets in Kashmir and drawing great
attention from the national and international markets. Treish is BIS
(Bureau of Indian Standards) certified and its quality and composition are
almost at par with the world-leading brands Evion and Volvic. The plant is
epoxy-coated and has fully automatic machines for processing and
packaging. The R&D team of the plant is working on the production of
some soft drinks which will hit production soon.

30
 Kanwal Spices Pvt. Ltd.-J&K
Kanwal Foods and Spices (I) Pvt. Ltd. processes and packages its hygienic
and quality controlled products through its state-of-the-art industrial
units, located in various parts of the country, including the national capital
of India, Delhi. The registered office of the company is located at
Anantnag and corporate office is located in Delhi.
The company provides spices for the domestic markets under the
brand name “Kanwal” and “Alamin” in the international market.
The company is registered with the Spices Board, GOI and Indian
Spices Exporters Forum and exports its quality products to Saudi Arabia,
Bahrain, Kuwait, Oman, Dubai etc. The supply chain network consisting
customer, retailer, distributor, manufacturer and supplier is closely linked
through an efficient flows of information and finance to ensure smooth
functionality.
 Asia Tea Company Pvt. Ltd.-J&K
The culture of kashmir is a diverse blend and highly influenced by
Northern South Asian as well as Central Asian culture. Along with with
scenic beauty Kashmir is famous and used to its ‘NOON CHAI’ (salted tea).
Kanwal Foods and Spices are saturating the market with the top most
quality of tea on top of that Kanwal is known for its ‘Kehwah Masala’.

31
 Kanwal Products
 Indian Spice Powder & Blended Spice Powder.
 Ready Mixes.
 Indian Whole Spices.
 Kashmiri Honey.
 Kashmir Saffron.
 Kashmiri Traditional Spice Mix.
 Jams & Murabbas.
 Vegetable Pickles.
 Packaged Drinking Water (Treish)
 Kehwa Masala.
 Bombay Biryani.
 Shahi Kheer.
 Adrak (ginger) Powder.
 Black Cardamom Powder.
 Jeera (Cumin) Powder.
 Kali Mirchi (Black Pepper).
 Kasoori Methi (Fenugreek Leaf).
 Kesar (Saffron).
 Luhsun (garlic) Powder.
 Cloves Powder.
 Shahi Korma.
 Daniya Powder.
 Chilies Powder.

32
 Turmeric Powder.
 Meat Masala.
 Garam Masala. Etc
 Online Stores
Kanwal Foods and Spices are about to launch online stores which
would help in:
 Incredible convenience
 Price Comparison
 Infinite Choice
 Easy Access to Consumer reviews
 Low Pressure Sales
 Home Delivery
 Easy and Obvious Buying Process
 Constant Feedback and Status Updates.
 24*7 Shopping Accessibility
 Time Saving
 Consistent prices

33
Theoretical Background of the Study
The topic Retailers satisfaction towards kanwal Foods and Spices was
given to me, to analyze how much the retailers were satisfied towards
kanwal spices for doing such survey I was given a questionnaire related to
this topic. I distributed this questionnaire among the retailers of South
Kashmir especially for the district Anantnag. Then I collected data, I
analyzed how much retailers were satisfied towards this brand.
After collecting the data I analyzed that kanwal was in a much better
position than others, because of following reasons:
 BECAUSE OF:-
1. PROMPT DELIVERY.
2. BEST MATERIAL USED IN PRODUCTS.
3. POWER & IMAGE OF BRAND.
4. BETTER ADVERTISING.
5. BETTER DISTRIBUTION NETWORK.
6. QUALITY PRODUCTS.
7. COVERAGE OF MAXIMUM MARKET SHARE.
8. INVOLVEMENT OF MARKETING PERSONALS.
9. BETTER STRATEGIES AND PLANNING BY TOP MANAGEMENT.
10.CONSTANT REVIEW OF MARKET.
11.SATISICTION GOODWILL.

34
 The above were some of the reasons why Kanwal is at the top &
other brands are at the bottom.
 There are some brands which are giving tough competition to this
brand like:
 Catch
 BMC
 Bharat
 Shalimar
And other local brands like:
 Rehmat
 Mehak
 Kongpoosh
 Welcome
 These above brands are giving tough competition to Kanwal
because of following reasons:
 BECAUSE OF:-
1. LOW PRICE.
2. DELIVERY AT DOOR STEPS.
3. COMPANY’S OFFERING INCENTIVES.
4. MUCH HIGHER MARGIN THAN KANWAL.
5. NO SHORTAGE IN PRODUCTS.
6. SAME PRICES EVERYWERE AMONG DISTRIBUTORS.
7. LIMITED DISTRIBUTION.
8. ENTERTAINMENT OR TAKING BACK OF EXPIRED PRODUCTS.

35
Now let’s move towards the other side of this topic i.e;
weakness of Kanwal Foods and Spices. This brand is not having too many
weaknesses as compared to its competitors that is the reason why kanwal
is at the top & the remaining are at the bottom. The following are the
weaknesses of kanwal spices.

36
WEAKNESSES OF KANWAL SPICES
 Kanwal is not focusing on its competitors.
 Kanwal has largest number of distributors resulting in
different rates to retailers.
 Less focus on rural people resulting in loss of major population.
 Lack of target schemes results in showing way to competitors.
 Lack of doing any innovation in present business cycle.
 Lack of regular incentives to retailers.
 Lack of marginal safety in many products to retailers.
 Shortage in supply chain of many products to hub-retailers.
 Lack of advertisement schemes and products like Boards, Banners,
Calendars, Wall-clocks, Bags and other gifts to retailers.

37
OPPORTUNITIES
 Giving more & more target schemes will be helpful for the company
to increase sales.
 Online stores can boast the business and capture major portion of
market.
 Giving advertisement material like clocks, Banners, wallpapers etc
will be helpful to company in gaining retailers satisfaction.
 Arrangement of a vehicle which will go to retailers to analyze their
problems.
 Elimination of rate differences created by distributors.
 Doing regular innovations in the present business cycle.
 Quality should be maintained and summed up for the rest of the
business cycle.
 General meetings with whole-sellers and retailers should be
organized occasionally by the company in order to know the market
needs and demand to capture the major portion of market.

38
Objectives of the Study
 The first objective of this study is to check & analyze how far the
South Kashmir retailers are satisfied with Kanwal Foods and Spices.
 The second objective of this study is to point out queries of South
Kashmir retailers.
 The third objective of this study is to gain the skills of marketing
management.
 To help improve channel member-company relations by measuring
their attitudes and perception toward the company's’ products,
policies and procedures.
 To provide broad guidelines and suggestions to the company for
the improvement of channel member-company relationship and
their satisfaction.

39
Scope /Benefits of the study
The information contained in the report can be used to target areas for
improvement as well as highlight areas of strength. By responding to
retailers issues and building channel member loyalty, the company will
ultimately help its own sales initiatives.

40
Research Methodology
The present study is an endeavor to study the satisfaction level of the
channel members of KANWAL FOODS & SPICES. To commensurate it, the
study is mostly based on primary data.
The research approach is Explanatory in nature and focuses on the
objectives stated.
Further the study is confined to the Kashmir province of J&K state only
and in order to carry out the study in a systematic and convenient way
the area under study was taken the district of Anantnag.
Sample Features
The units of study for this project are the retailers of Kanwal Foods &
Spices. The technique of sampling used is convenient sampling.
Data Collection
Primary data: The project report mainly comprises of data collected from
primary sources through questionnaires and interviews.
Secondary Data: In addition to the primary sources data was also
collected from the following sources:
Company Annual reports
Brochures
Leaflets
Internet

41
Questionnaire Design and Development
The research and information collecting instruments were non-disguised
structured questionnaires comprising of 15 questions of the following
types:
I) Closed –End Questions
 Dichotomous
 Multiple Choice
 Scaled-Response Questions (Liker Scale)
II) Open –Ended Questions
The questions were developed in a common phrasing, keeping the
following considerations in mind:
Convenient and least bother-some to the respondents.
The questionnaires used are shown in Appendix-I
Data Collection
Respondent were given a questionnaire and the interviewer noted down
the responses after giving the information about the purpose of the study
and instruction about the questions.

42
Methodological Assumptions and Limitations
Assumptions
. Data was collected from the channel members by using both the
questionnaire method and the observation method.
. It’s hoped that the sample size portrays the true picture.
LIMITATIONS
. Due to time and resource constraints the sample size is limited and
probably not enough.
. The study is limited to the Kashmir province of J&K state only.
. The data gathered may be biased in favor of the respondents.

43
Summary of Findings
To get the general overview of the retailer satisfaction, Scheduled Questionnaire was
formulated with close ended questions. The field work was started from 1st
of June 2012 till
15th
of July in four district of Anantnag. The Questionnaire comprise of 15 questions targeting
the issues on retailer satisfaction from delivery of the products to the special policy initiative
of the Kanwal product promotion. The sample size of the study was 100 retailers, all the
districts were given due share according to the approximate population proportionately.
Analysis of the data so collected with brief description is given below:
1. Delivery of the Product
75 percent of the retailer says getting products at the doorstep as against 25
percent getting themselves. It appears there is not a uniform distribution
channel mechanism prevailing in distribution.
75%
25%

44
2. Incentives from the Company
Only 20 percent of the respondents say we are offered incentives from the company whereas
80 percent don’t receive any incentives.
3. Profit Margin offered by the company
55 percent are satisfied with the margin policy of the company, 23 percent say neutral and 22
percent are dissatisfied.
20%
80%
satisfi
ed 55
55%
nuetr
al 23
23%
not
satisfi
ed 22
22%
satisfied
nuetral
not
satisfied

45
4. Satisfaction of supply order to the company or the distributor
62 percent feel satisfied as against 27 feel somewhat satisfied while as 11 are not satisfied.
5. Company follow up on marketing of products
77 percent are satisfied with the company follow up while as 23 percent are dissatisfied.
62%
11%
27%
23%
77%

46
6. Shortage in supply distribution
61 are fully satisfied with the supply distribution, 32 percent feel shortage few
times, 3 percent many times, 2 percent feel most of the times and 2 percent
always.
7. Most selling brands in the market by the retailer
67 percent kanwal, 33 percent others.
61%
32%
3% 2% 2%
kanwa
l
67%
Others
33%
kanwal
Others

47
8. Quality comparison of kanwal and Others
Kanwal is brand equity in the market. 68 percent say kanwal is better than
others, 12 percent say others are better than kanwal and 20 percent say there
is no difference.
9. Satisfaction on Work execution of the company(New concepts like right
execution daily)
59 percent satisfied, 24 percent not satisfied and 17 percent no comments.
68%
12%
20%
Kanwal is
better than
others
others are
better than
kanwal
no
diffrence
59%
24%
17%

48
10. Is RED helpful in enhancement of sale
74 percent say yes as against 14 percent say no and 12 percent give no
comments
11. Company executive visits to retailer
35 percent regularly, 42 percent occasionally and the rest 23 percent never.
74%
14%
12%
35%
42%
23%

49
12. Satisfied with the company sales executive
29 percent completely satisfied, 33 percent somewhat satisfied 38 percent say
dissatisfied.
13. Satisfied with the distributor
53 percent completely satisfied, 37 percent somewhat satisfied and 10 percent
are dissatisfied
Conclusion: It appears that kanwal spices are showing some positive response from the
retailer’s satisfaction leaving the exceptions of few. It’s continuously moving towards the
brand equity, however in-depth report to be submitted will incorporate suggestions as well as
others aspects related to the project under study.
53%37%
10%
satisfi
ed
29%
not
satisfi
ed
38%
Some
what
satisfi
ed
33%
satisfied
not
satisfied
Somewhat
satisfied

50
Conclusion
 I have observed that majority of the retailers are dissatisfied due to
the aggressive pricing used by distributors. Some of the distributors
have been found in indulging in this malpractice.
 Most of the distributors and the retailers are being visited on a
weekly basis. Some of the distributors and retailers are not being
visited by the sales executives at all and some are being visited on
monthly or fortnightly basis.
 Most of the company sales and marketing executives lack the
necessary training, professionalism and responsiveness as
demanded by the nature of their jobs.
 Almost all the retailers are satisfied with the payment schedule.
 The packaging of Kanwal products is excellent and is par with other
leading national and global brands.
 The products of the company has high price as compared to other
competing brands.
 Majority of the retailers claim that they do not receive incentive.
 The retailers want incentives and other benefits from the company.
 There is a minimal company-retailer communication.
 Retailers are not getting enough advertisement material like
billboards, signage etc.
 There is no company policy for taking the expired products back,
mostly blended spices. Due to this reason retailers are not ordering

51
blended spices in larger quantity. There is also not much effort in
marketing the blended spices from the company.
 The distribution zones for most of the distributors are not well
defined. This results in conflict between distributors over the areas
to be served.
 The packaging of certain products is not durable enough, hence
results in frequent complaints.
 The outer packaging of certain products leads to confusion as the
gram mage of the inner contents is not mentioned. This often ends
up in supplying the wrong consignment.
 The high costs of carrying inventories are pushing up the costs of
the products of the company.
The retailers are the only persons which are in direct
contact with end consumers so the company & company
representatives need to make them happy. They can make them
happy by giving target schemes, advertisement material and also by
eliminating the rate differences. Due to lacking of such facilities &
also due to the reasons mentioned above the retailers are a bit
dissatisfied with the company. Company need to take immediate
steps so that KANWAL can get maximum market share.

52
Recommendations and Suggestions
 Majority of the Marketing and Sales Executives of the company
have not been trained to perform their professional duties well. As,
human resource is an invaluable asset of an organization, therefore,
training programs should be conducted for them to inculcate in
them the attitude and skills of marketing & sales.
 The Company Sales executives should visit the retailers on weekly
basis. This will help the company in strengthening the co-retailer
relationship.
 With the entry of new competitors, company is sure to be
challenged and as the market is dynamic, the company should give
more stress on Loyalty schemes etc, to attract and retain retailers,
which otherwise will be lured away by the competitors. Incentive
schemes like Cash discount on advance and on time payments
should be introduced and properly communicated to all the
Retailers.
 The Company should concentrate on providing consistent supply to
the distributors and focus on strengthening the relationship with
them.
 The company should add more suppliers to its supply chain to
prevent shortage of raw materials.

53
 The number of distributors should not be increased in the existing
areas.
 As a larger section of the market is untapped & unexplored,
therefore, production should be increased to cater to the existing
markets and the potential markets. A mechanism should be
developed to make the sales team accountable for their Jobs.
 A separate section for Order placement, Order processing & Order
delivery should be established.
 A fulltime Grievance Redressal Cell should be formed to redress the
problems of the channel members. This cell should be headed by
the Marketing Manager.
 To ensure success of new products launched, a fulltime Marketing
Research Cell should be formed that should be headed by the
Marketing Manager and assisted by Manager R&D.
 To curb the malpractice of aggressive pricing by certain distributors,
it is recommended that a Task Force Team should be formed, and it
should be headed by a Director.
 A distributor’s meet (get together) should be organized at least
once a year. Manager PR should be authorized to conduct the
function.
 A major part of the advertisement budget for the every fiscal year
should be allocated to Billboards and Hoardings for the retailers.

54
 A policy should be framed for taking expired products back from
the market to retain the business of retailers and maintain good
relations with them.
 It is also recommended that a policy should be framed to divide
markets into specific areas/ zones of operations for the distributors
so that distributors don’t infiltrate into each other’s territory. This
will help in reducing the horizontal channel conflict.
 For smooth inflow of raw materials, a purchase division should be
formed. The division should be headed by a fulltime Director
Purchases.
 More warehouses should be maintained so as to avoid the delay of
consignments to the distributors. It is recommended that a
warehouse be maintained in the south Zone as soon as possible.
 It is recommended that continuous feedback should be taken from
the channel members so as to ensure that they are being served in
the best way.
 General meetings (get together) with whole-sellers and retailers
should be organized occasionally by the company in order to know
the market needs and demand to capture the major portion of
market

55
 Annexure-1
A study of retailers satisfaction towards KANWAL spices
Questionnaire for Retailers
Name : __________________________________
Adress : ____________________________
Location : __________________________________
Area _________________________________________
Contact No. :__________________________________
1. HOW THE PRODUCTS ARE DELIVERED TO YOU.
A. AT YOUR DOORSTEP. B. YOU GET BY YOURSELF
2. ARE YOU OFFERED INCENTIVES FROM THE COMPANY.
A. YES. B. NO
3. ARE YOU SATISFIED WITH THE MARGIN OFFERED BY THE COMPANY.
A. SATISFIED B. NEUTRAL C. DISSATISFIED
4. ARE YOU SATISFIED WITH THE FULLFILMENT OF YOUR ORDER BY THE
COMPANY/DISTRIBUTOR.
A. COMPLETELY SATISFIED B. SOME WHAT SATISFIED C. DISSATISFIED
5. ARE YOU SATISFIED WIT H THE COMPANY’S FOLLOWUP ON MARKETING
OF ITS PRODUCTS.
A. YES B. NO
6. DO YOU FACE ANY SHORTAGE IN SUPLLY OF THE PRODUCTS BY THE
COMPANY.
A. NOT AT ALL B. FEW TIMES C. MANY TIMES D. MOST OF THE TIME.
E. ALWAYS
7. WHICH ARE THE MOST SELLING 3 BRANDS OF SPICES IN YOUR OUTLET.

56
1.---------------------------------2.----------------------------------3.-------------------------------------------
8. QUALITY COMPARISON OF KANWAL/ OTHERS
KANWAL IS BETTER THAN OTHERS B. OTHERS ARE BETTER THAN KANWAL. C. NO
DIFFERENCE
9. DO YOU ENCOURAGE AND ARE YOU SATISFIED WITH THE WORK
EXECUTION OF COMPANY PEOPLE REGARDING NEW CONCEPTS LIKE
RIGHT EXECUTION DAILY (RED)
A. YES B. NO C. NO COMENTS
10. IS RED HELPING YOU REGARDING THE ENHANSMENT OF SALES.
A. YES B. NO C. NO COMENTS
11. WHAT TYPE OF CLAIM DO YOU FEEL REMAINS ILL ATTENDED BY THE
COMPANY
12. HOW OFTEN COMPANY EXECUTIVE VISITS YOU.
A. REGULARLY B. OCCASIONALY C. NEVER
13. ARE YOU SATISFIED WITH THE WORKING OF COMPANY’S SALES
EXECUTIVE.
14. ARE YOU SATISFIED WITH THE DEALING OF THE DISTRIBUTOR.
15. DO YOU HAVE ANY SUGGESTION TO MAKE SOME IMPROVEMENTS IN
THE PRESENT DISTRIBUTION NETWORK OF THE COMPANY.

57
Bibliography
1. Principles of Marketing by Philip Kotler & Kelvin
Lane Keller, 12th
Edition
2. Marketing, Planning & Strategy by Subhash C.
Jain, 6th
Edition
3. Marketing Research by Naresh K. Malhotra, 4th
Edition
4. Marketing Research by Debashis Pati
5. Marketing Research by Donald S. Tull and Del I.
Hawkins 4th
ed.,
Webliography
6. Internet websites:
a. Google.com
b. www.indianspices.com (Spice board of
India)
c. www.spice-trade.com
d. www.vuatkerala.org
e. www.naukrihub.com
f. www.mynaukri.

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