CHAPTER 1

INTRODUCTION

1.1INTRODUCTION TO THE STUDY

TEXTILE INDUSTRY IN INDIA

The textile and garment industry is the basic tool for most developing countries to enter
the road of industrialization. This typical light industry sector which need less capital intensive
and require low technology are the open door for developing country to enter into this field. In
addition, the high wages in developed countries have created favourable conditions for the
manufacturing and the exportation of textile and garment products. Furthermore, on January 1,
2006, WTO (World Trade Organisation) put an end to the worldwide system of textile and
apparel quotas, created a leap for the textile and garment industry in Asian countries (Kilduff&
Chi, 2006).. On the other hand, the industry cost of textile and garment in South America,
Caribbean, and Eastern European are high, therefore, it tend to decrease and shift to Asian,
where have cheap labour cost and other costs.

The Indian textile Industry is one of the largest and most important sectors in the
economy in terms of output, foreign exchange earnings and employment in India. It includes
several sub-sectors: spinning, weaving, knitting and garments. It also uses different materials like
cotton, jute, wool, silk, man-made and synthetic fibers. The textile industry has three main
sectors: the organized mill sector (traditional weaving and spinning), the power loom sector
(mechanized looms) and the handloom sector.

The total production of fabrics in all the three sectors combined was around 42 billion
square meters, with 59 percent of the total fabric production produced by the power loom sector,
19 percent by the handloom sector, 17 percent by the knit (hosiery) yarn sector, and the rest by
the organized mill sector. The large share of power looms (an intermediate category of looms,

1
operated by power) has resulted from a government policy that supports the unorganized sector
in the form of reservation of product categories, mandatory export entitlement quotas, and input

The textile industry in India makes an enormous and multi-directional contribution to the
domestic economy of the country. The sector accounts for a significant portion of the total
industrial output of the country and plays a vital role in the countrys economy with regard to
employment and foreign exchange.

The industry has witnessed a phenomenal growth during the last four decades. It accounts
for 9% of Gross domestic product, for nearly 20% of the total national industrial production and
35% of the export earnings, making it Indias largest net foreign exchange industry. It directly
employs 35 million workers and has widespread forward and backward linkages with the rest of
the economy, thus providing indirect employment to many more millions. In addition, Indias
economic situation has improved dramatically since the Indian government introduced new
economic reforms in 1991, leading to liberalization in government policies and a significant
increase in its foreign exchange reserve position.

Spinning industry in India

Spinning Industry in India has gone from strength to strength since a very long time now
as it was the most profitable textiles in the export industry.Hub of cotton manufacturing. Cotton
is not only consumed to the highest extent in India but it has also become one of

The yarn spinning industry covers almost 25 percent of the total industrial production of
one of the world's 10 largest economies. Trends are reviewed every year in accordance with the
need and fashion. An elaborate and detailed assessment is made on various sectors of the yarn
spinning such as, production, consumption, and materials. The legislative and the political
consequences are also reviewed at the same time. In addition to it, other areas that are being
reviewed in the yarn spinning sector are exports, imports, prices, advertising, and sales
promotion patterns.

2
1.2 SCOPE OF THE STUDY

The study highlights the factors influencing the distribution and redistribution in textile
industry. It also covers the problem faced by the respondents (distributors) and throws light on
their opinion on the redistribution services provided by the companies.

3
1.3 STATEMENT OF THE PROBLEM

The existence and development of Cotton Industry play a significant role in the economic
and social development of a country. The development of the Cotton Industry much depends on
its functions and market for its Cloth, with the number of materials available in the Cotton
Industry.

4
1.4 OBJECTIVE OF THE STUDY

To identify the distribution channels of cotton yarns.

To identify marketing situation of cotton yarns.

To find present problems faced by the Distributors.

To find new schemes required by the Distributors.

5
1.5 LIMITATION OF THE STUDY

This research study is confined only to Erode and tirupur town, the findings and
suggestions made by the researcher is applicable only to the above set areas and may not
be applicable to other part of the Tamilnadu.
The time duration allotted for this study was very limited, the researcher was not able to
conduct an extensive survey.
The respondents identified for this research study (sales man & distributors) were so busy
so that the researcher spend considerable amount of time in collecting the data.

6
 CHAPTER II

COMPANY PROFILE

2.1 INTRODUCTION OF THE COMPANY

Mothi spinner private Ltd., with a Two Star Export House status and its Towels division
Mothi Soft-X Towels, are International organization for standardization 9001 certified
enterprises. We are among the leading manufacturers of a wide range of textile products, located
in Veppadai, Tamilnadu in the southern part of India.

Mothi, with over five decades in the industry runs a self reliant and composite operation.
Its operation spans Spinning, Weaving, Yarn Dyeing, Wider Width Fabric Printing, Wider Width
Processing and Sewing. Its products range from 100% Cotton & Blended Yarn, Bleached &
Dyed Yarn, Bleached & Dyed Terry Towels, Made-ups, Bathrobes, Bed & Table Linen, Non-
Sterilized Operation Room Towels and Lap Sponges to Blankets.

Yarn:

Mothi with its highly modernized state-of-the-art equipment from Reiter and Schlafhorst
produces high quality Ring Spun, Compact and Open End (Carded & Combed) Yarn in both
100% Cotton and Blends. With a Spinning Capacity of 100,000 spindles and 384 rotors it can
produce 30 tonnes/day of quality Yarn in counts ranging from 6s to 100s. in Singles, Ring
Double and Two for one twisting. Quality is monitored at various stages using modern testing
equipment like Uster Advanced fibre information system, Uster High volume instrument to
ensure the manufacture of high quality yarn that meets international standards

Yarn Dyeing:

Mothi to meets its commitment to Quality is equipped with imported High Temperature -
High Pressure Micro Processor Controlled Yarn Dyeing machines, Radio frequency-Dryers
&MacBeth Color Matching Systems to produce 3000 kgs/day of high quality Bleached & Dyed
Yarn using Reactive, Vat or Disperse dyes, in lot sizes ranging from 25 Kgs to 200 Kgs .

7
Mothi Soft-X Terry and Home Textiles Division

Terry Products:

Mothi Soft-X with its imported Rapier Looms can produce 20 tonnes /day of Terry
Towels with Cotton Dobby Border & Filament Fancy Border. With stringent process control
systems and its latest Soft-Flow Dyeing Machines, Kusters Hydraulic Jiggers, MonfortStenter,
European make continuous Tumble Dryer and Calendering facilities can process Bleached &
Dyed Terry Towels, Terry Bathrobes, Wider Width Bed Sheets and Pillow covers in 100%
Cotton & Blended Fabrics to match international standards for Soft Feel & Color Fastness.
Mothi Soft-X can produce Face, Hand, Bath, Beach Towels and Terry Bathrobes with both
Carded & Combed yarn in different weights ranging from 350 Gram per square meter to 600
Gram per square meter.

MothiSoft-X has backed its commitment to quality with a modern lab, equipped with
Infra Lab Dyeing machine, Auto Dozer and MacBeth Color Matching Systems.

Home Textiles:

MothiSoft-X has a well organized Sewing facility to produce Home Textiles and Terry
Products. Its product range includes Bed Linen, Table Linen, Oven Mittens, Pot Holders,
Napkins, Aprons, Bed-Entourage, Baby Quilted Beds, Baby Quilted Sleeping Bags and Terry
products like Bath Towels, Face Towels, Hand Towels, Beach Towels, Bathrobes, Terry Hooded
Towels, Terry Bibs, Placemats, Terry Plaids and Baby Diapers. Bleached, Dyed or Yarn-Dyed
Terry products can be produced in different weights ranging from 300 GSM to 800 GSM.

Fabric Printing:

Mothis fabric printing facilities is well equipped with Brugman& Holland CBR,
Bruckner Stenters, Zimmer wider width 12 color printing machines, Kusters Calendaring

machines and in-house design and engraving capabilities. It produces about 50,000 mtr/day of
high quality printed fabric

8
Quality Policy

"It is the policy of mothi., to provide textile products with conformance to agreed
specifications at the most competitive price, on time, to ensure the satisfaction and confidence of
our valued customers. This will be achieved by our total commitment and involvement in our
Quality Assurance Systems"

DEPARTMENTS

PURCHASE DEPARTMENT

Mainly raw materials like cotton, viscose, staple virgin cotton, staple fibre, polyester
staple and cotton waste are purchased. In our country the cotton growing states are Tamil Nadu,
Karnataka, Hariyana, Maharashatra, Rajasthan and Gujarat.

The main raw materials are cotton and viscose. The raw materials are purchased after
getting various samples from different cotton merchants, they supply it along with full
specification such as varieties, rates, staple length etc., regarding raw materials, the purchase
manager will call for allocation from various suppliers. Before purchasing the cotton, the
purchase manager will check the stock level requirements. Then he will take the decision how
much to order. After receiving the information finally the company selects the suppliers by
seeing the rate, delivery period, discounts and quality of material. After selecting the suppliers,
the company places orders with them.

PRODUCTION DEPARTMENT
Production Process:

Removal/contamination

The examined cotton is thoroughly sent for removing impurities and contamination. The
contaminations are removed by hand picking which is better the machine picking.

9
Mixing

Cotton yarns from various processes are mixed for desired quality based on testing of
these characteristics.

Blow Room

Sequence of machinery line is used for gradual opening and cleaning of cotton. The
voluminous cotton is converted into lap form.

Carding

Opening and further individualization of fiber and removal of trash and foreign materials
lap is converted in to sliver form. Carded sliver is converted into lap form and combers.

Drawing

Short fibbers are removed from sliver. By combing, better ruster and strength could be
given to the yarn.

Simplex

Carded sliver are processed in comber frames. It is spun in uniform thickness.

Spinning

Roving is converted into yarn of the required count by drafting, twisting and winding on
the ring frames.

Cone Winding

In this stage yarn is wound on paper cones known as cops. Cones are weighed depending
upon the requirement. It is very useful in processing the next stages like knitting and wrapping.
After finishing the process, the material is packed into bags.

10
SALES DEPARTMENT
The sales manager heads the sales department. He does the processing from international
and local market. The Sales manager will study the market trend and finally submit the market
report to the managing director according to the market demand and customer taste.

Direct sales

By preparing direct invoice the products are sold to the customers directly.

Depot sales

In depot sales, agents are appointed at different places like Tirupur, Erode, Salem,
chennimalai, karur and Madurai.As per the requirements of the agents, the product is sent to the
depot sales. Agents sell the products in their own name.

Consignment Sales

In consignment sales agents are appointed under separate contract and the same will be
executed to each and every agent.

Export Sales

In export sales, agents or merchants are appointed. The buyer and seller enter into
contract through agents and merchants. The company exports the goods to the buyer mainly to
earn foreign exchange, Export sales may be directReport and merchant report.

ACCOUNTS DEPARTMENT
The main work of this department is to record the financial transactions. The day-to-day
transactions are recorded in the proper book and are kept for reference. The transactions are first
recorded in the journal as and when they take place. Subsequently these transactions are recorded
in the bank book, purchase journal, Sales journal, Debtors ledger, Creditors ledger, etc.

11
PERSONNEL DEPARTMENT

Recruitment

For production department the age limit for recruitment is 18 to 24. In case of others, age
limit may vary according to the designation, educational qualification of the workers. In this
institution the educational qualification of the workers should be above 8th standard.

Selection

Selection tests may provide information about their aptitude, interest, speed, eye test, etc.,
selection tests are normally followed in the personal interview of the candidates. The personal
manager conducts it.

Training

The company for improving performance of the individual workers in particular job
conducts various training programmes.

Placement

After completing all the formalities the candidates are appointed for a probationary
period. The probationary period may range from 3 months to 1 year. During this period the
candidates are keenly observed. If they complete the training period successfully, they become
permanent employees.

WELFARE MEASURES

Welfare facilities to the employees are provided by the organization. It has facilitated the
employees with a colony of its own, with laid out roads, parks, avenues and blocks of residential
areas. Quarters for the staff, managers and officers are situated near the factory site.

The company is running a reputed school for the children of the employees, up to plus
two level. Health care of the employees, high safety practices, recreation and cultural activities,

12
training for workers and union leaders, family planning etc., are some of the welfare measures
taken by the company.

DISTRIBUTION
Distribution (or "Place") is the fourth traditional element of the marketing mix. The other
three are Product, Price and Promotion.

The Nature of Distribution Channels

Most businesses use third parties or intermediaries to bring their products to market. They
try to forge a "distribution channel" which can be defined as" all the organizations through which
a product must pass between its point of production and consumption".

Why does a business give the job of selling its products to intermediaries? After all, using
intermediaries means giving up some control over how products are sold and .The answer lies in
efficiency of distribution costs. Intermediaries are specialists in selling. They have the contacts,
experience and scale of operation which means that greater sales can be achieved than if the
producing business tried run a sales operation itself.

Functions of a Distribution Channel

The main function of a distribution channel is to provide a link between production and
consumption. Organisations that form any particular distribution channel perform many key
functions:

Information Gathering and distributing market research and intelligence -

important for marketing planning
Promotion Developing and spreading communications about offers
Contact Finding and communicating with prospective buyers
Matching Adjusting the offer to fit a buyer's needs, including grading,
assembling and packaging

13
Negotiation Reaching agreement on price and other terms of the offer
Physical distribution Transporting and storing goods
Financing Acquiring and using funds to cover the costs of the distribution
channel
Risk taking Assuming some commercial risks by operating the channel (e.g.
holding stock)

All of the above functions need to be undertaken in any market. The question is - who
performs them and how many levels there need to be in the distribution channel in order to make
it cost effective.

Numbers of Distribution Channel Levels

Each layer of marketing intermediaries that performs some work in bringing the product to
its final buyer is a "channel level".
Distribution of Textiles is normally of two types viz., Distribution of the products from
manufacturing point to the Wholesaler and from wholesaler to the retailer.
This study is concentrated only on the second part of the distribution i.e., Wholesaler
Distributor to retailer because only the second part is quite challenging and has lots of
problems in maintaining customer relationship.

14
The figure below shows some examples of channel levels for consumer marketing channels

Factory

C&F(Clearing & Forwarding ) (DISTRIBUTION)

Whole sale Distributor (WD) Stockist

Secondary whole sale Distributor(SWD)

Retail outlet

(RE DISTRIBUTION)

CONSUMER

15
REMITTANCE BY DISTRIBUTORS

Remittances are sent by the wholesale Distributor to the company by RTGS (Real Time
Gross Settlement)

MARKET CREDIT:

Market credit for retailer 14 days

Market credit for wholesaler 25 days

BILLING SYSTEM

PURCHASE

-Purchase invoice (for manual order)

- Purchase invoice view/uploads

- E purchase invoice

-payment to corporate

- Payment to corporate

- Payment tracking

SALES

- Bill entry

- Bill update / print (to analyse the daily bills list)

- Vehicle allocation

- Collection shop wise

- Collection browser (amount adjustment)

- Sales entry

16
- Sales return

-Manual change of code

STOCK

- Stock browser (to print stock position, stock book, closing stock)

- Stock type transfer (transfer over stocks to another agencies)

- hold / release stock

PROMOTION

- Promotion definition (new schemes updates)

- view promotion (view list of updated schemes)

GENERAL

- Bill / order series

-tally data updates

- Bank account

-return goods

SALES REPORT

- to generate closing stock & sales value

- Cust analysis report (to find a customer sales value)

- Unbilled Stock keeping unit report

- Bill summary report

- Cheque deposit report

17
- Customer wise report

- Sales analysis (product wise analysis for a day)

GENERAL REPORT

-customer outstanding

-daily collection report

-purchase report

- Special discount

- Damage report

- damage stock analysis

CLAIM REPORT

-claim details report

MASTER

- Stock keeping unit master

- Price master

- Special discount reason master (discount during festival)

- Supplier master (new customer entry)

18
DOWNLOAD/ UPLOAD (daily after collection details will be uploaded)

- upload data to HUB

-download free Stock keeping unit price

- Download promotion

-up

19
 CHAPTER-III

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY
Research methodology is the process used to collect information and data for the purpose
of making decision and solve the problems.
The study of research methodology helps to develop the training in gathering the
materials and arranging them. Participation in the field works and also provides the training in
techniques for collecting the data according to the problem.
RESEARCH DESIGN

The validity of any research is based on the systematic method of data collection and
analysis. Both primary and secondary data were used for the present study. The primary data
were collected from various respondents in the study area. For collecting the first-hand
information, respondents were chosen by convenient sampling method (i.e.10% from the total
population).The researcher approached the respondents located at in and around erode and
tirupur. In this study researcher has used descriptive research design.

DATA COLLECTION

Primary Data

The primary data thus collected from the primary sources of information were arranged
systematically and logically and were tabulated under necessary heads for the study of various
aspects and evaluation. The specimen of the questionnaires given to the selected sample
respondents is given in the Appendices section of the report.

Secondary Data

Secondary data were also collected for this study from leading journals, magazines and
websites relating to textile industry.

20
TOOLS FOR DATA COLLECTION & ANALYSIS

By virtue of the mass data obtained from research survey, as well as data from primary
and secondary sources were collected, descriptive research was considered the most appropriate
for this study. The research problems and questionnaire were all framed accordingly. The
suggestions offered in the final chapter of the present research report emerged from the
inferences drawn from the study of the sample respondents information thus analyzed by using
Percentage analysis, Chi Square test, SWOT analysis and Semi average demand forecasting
techniques. The researcher used close-ended and open-ended questions in the questionnaire to
collect the primary data.

Questionnaire was the main tool used to collect the data from the selected sample
respondents. For this purpose, a well structured questionnaire was framed with the help of the
Supervisor. The questionnaire so drafted was circulated among the experts and research scholars
for their critical views with regard to its working and its format, sequence and the like. The
questionnaire was modified in the light of their comments.

SAMPLE SIZE
The convenient sample size used for study of Distribution channel in mothi spinner
limited with 150- sample size.
SAMPLE METHOD
The researcher selected the sample from the population by applying Nan random
sampling method.

ANALYSIS

Analysis is the process of placing the data in an ordered form, combining them with the
existing information and extracting the meaning from them. In other words, analysis is an answer
to the question what message is conveyed by each group of data which are otherwise raw facts
and are unable to give a meaningful information. The raw data become information only when
they are analyzed and put in a meaningful form.

21
INTERPRETATION

Interpretation is the process of relating various bits of information to other existing

information. Interpretation attempts to answer, What relationship exists between the findings to
the research objectives and hypothesis framed for the study in the beginning.

Tools for Analysis

For this research the following tools were used:

Simple Percentage Analysis

Ranking Method
Chi-square Test

SIMPLE PERCENTAGE ANALYSIS

Percentage refers to a special kind of ratio percentages are used in making

comparison between two are more series of data. Percentages are used to describe
relationship since the percentage reduces everything to a common base and there by
allows meaningful comparisons to be made.

No. of. Respondents

Percentage analysis = ---------------------------------------- X 100

Total No.of.Respondents

22
RANKING METHOD

Ranking or comparative method we make relative judgments against other similar

objects. The respondents under this method directly compared two or more objects and
make choices among them

CHI-SQUARE (2) TEST

Chi-square analysis has been used to test the hypothesis regarding consumer
satisfactions in preferring particular courier service. Chi-square, a non-parametric test, is
symbolically written as 2.

(O E ) 2
=
2
E

Where as

O - Observed Frequencies

E - Expected Frequencies

23
 CHAPTER- IV

DATA ANALYSIS AND INTERPRETATION

PERCENTAGE ANALYSIS

TABLE NO 4.1

AGE

S.N0 Age No of Percentage

respondents
1 25-30 yrs 32 21
2 31-40 yrs 68 45
3 41-50 yrs 28 19
4 Above 50 yrs 22 15

Total 150 100

INFERENCE:

From the above table it is inferred that, 21% of the respondents are in the age group of
25-30 years, 45% of the respondents fall in the age group of 31-40 years, 19% of the
respondents fall in the age group of 41-50 years, 15% of the respondents are aged above 50
years.

24
 CHART NO 4.1

AGE

50
45
45

40

35
PERCENTAGE

30

25
21
20 19
15
15

10

0
25-30 yrs 31-40 yrs 41-50 yrs Above 50 yrs

AGE

25
 TABLE NO 4.2

INCOME LEVEL

S.No Income No. of the respondents Percentage

13 8
1. Below 20000

35 24
2. 20001 30000

68 45
3. 30001 40000

34 23
4. 40001 and above

150 100
TOTAL

INFERENCE:

From the above table it is inferred that, 45% of the respondents are earning income from
cotton yarn of Rs.30001 - 40000. 24% of the respondents earnings are Rs.20001-30000.23% of
the respondents earnings are 40001 and above and only 8% of the respondents are earning below
20000.

26
 CHART NO 4.2

INCOME LEVEL

50
45
45

40

35
PERCENTAGE

30

25 24 23

20

15

10 8

0
Below 20000 20001 3000030001 40000 40001 and
above

INCOME LEVEL

27
 TABLE NO 4.3

DISTRIBUTOR EXPERIENCE

S.No Experience No. of the Percentage

respondents

7 5
1. Below 2 years

28 18
2. 3 -5 years

37 25
3. 6-8 years

78 52
4. Above 9 years

150 100
TOTAL

INFERENCE:

From the above table it is inferred that, 52% of the respondents are having above 9 years
experience in cotton yarn. 25% of the respondents are having 6 8 years of experience. 18% of
the respondents are having 3-5 years of experience. And only 5% of the respondents are having
below 2 years of experience in cotton yarn..

28
 CHART NO 4.3

DISTRIBUTORS EXPERIENCE

60

52
50

40
PERCENTAGE

30
25

20 18

10
5

0
Below 2 years 3 -5 years 6-8 years Above 9 years

DISTRIBUTORS EXPERIENCE

29
 TABLE NO 4.4

WEEKLY PURCHASE

S.No Weekly purchase No. of the Percentage

respondents

2 1
1. Below 500

20 15
2. 501-1500

36 25
3. 1500-3500

44 29
4. 3501-7000

45 30
5. Above 7000

150 100
TOTAL

INFERENCE:

From the above table it is inferred that, 15% of the respondents are purchasing cotton
yarn for Rs.501-1500. 36% of the respondents are purchasing yarn for Rs.1500-3500.29% of the
respondents are purchasing yarn for Rs.3501-7000 and maximum 45% of the respondents are
purchasing yarn for rupees above 7000.

30
 CHART NO 4.4

WEEKLY PURCHASE

35
30
30 29

25
PERCENTAGE

25

20
15
15

10

5
1
0
Below 500 501-1500 1500-3500 3501-7000 Above 7000

RUPEES

31
 TABLE NO 4.5

KIND OF COTTON YARN

S.No Kind of yarn No. of the respondents Percentage

1. Carded Yarn 32 21

2. Combed Yarn 118 79

Total 150 100

INFERENCE:

From the above table it is observed that, 79% of the respondents are dealing combed
cotton in their shops and only 21% of the respondents are dealing carded yarn in their shops.

32
 CHART NO 4.5

KIND OF COTTON YARN

Kind of Cotton Yarn

21%

79%

Carded Yarn Combed Yarn

33
 TABLE NO 4.6

MODE OF PLACING ORDERS

S.No Mode No. of the Percentage

respondents

1. Distributors sales 108 72

representative

2. Purchase from 42 28
wholesale shop

TOTAL 150 100

INFERENCE:

From the above table it is identified that,72% of the respondents are purchasing through
Distributor Sales Representatives,28% the respondents are purchasing from the wholesale shop.

34
 CHART NO 4.6

MODE OF PLACING ORDERS

Mode of Placing Orders

28%

72%

Dealer sales representative Purchase from wholesale shop

35
 TABLE NO 4.7

FREQUENCY OF PLACING ORDER THROUGH SALESMAN

S.No Placing order No. of the Percentage

respondents

1. Weekly twice 15 10

2. Weekly once 88 59

3. Once in a month 30 20

4. Twice in a month 17 11

TOTAL 150 100

INFERENCE:

From the above table it is inferred that,11% of the respondents are placing the order twice
in a month. 59% of the respondents are placing the order through Distributors salesman once in a
week. 20% of the respondents are placing the order once in a month and 10% of the respondents
are placing order twice in a week.

36
 CHART NO 4.7

FREQUENCY OF PLACING ORDER THROUGH SALESMEN

70

59
60

50
PERCENTAGE

40

30
20
20
10 11
10

0
Weekly twice Weekly once Once in a month Twice in a month
FREQUENCY

37
 TABLE NO 4.8

FREQUENCY OF SALESMEN VISITS TO RETAIL SHOP

S.No Salesman visits No. of the Percentage

respondents

1. Weekly twice 30 20

2. Weekly once 90 60

3. Once in a month 30 20

TOTAL 150 100

INFERENCE:

From the above table it is inferred that, 60% of the sales representatives are visiting the
shops once in a week. 20% of the sales representatives are visiting the shops twice in a week.
20% of the sales representatives are visiting the shops once in a month.

38
 CHART NO 4.8

FREQUENCY OF SALESMEN VISITS TO RETAIL SHOP

70
60
60
PERCENTAGE

50

40

30
20 20
20

10

0
Weekly twice Weekly once Once in a month
SALESMAN VISIT

39
 TABLE NO 4.9

TIME SPENT BY THE SALESMAN IN THE RETAIL SHOP

S.No Time spent No. of the respondents Percentage

1. Below 5 min 42 28

2. Above 10 - 15 min 93 62

3. Above 20 min 15 10

TOTAL 150 100

INFERENCE:

From the above table it is concluded that 62% of the respondents stated that the sales
representatives are spending above 10 15 min to sell yarns. 28% of the respondents are stating
that salesmen are spending below 5 min to sell yarn. 10% of the sales representatives are visiting
the shops and spending more than 20 min.

40
 CHART NO 4.9

TIME SPENT BY THE SALESMAN IN THE RETAIL SHOP

70
62
60
PERCENTAGE

50

40

30 28

20
10
10

0
Below 5 min Above 10 - 15 min Above 20 min
TIMES SPENT

41
 TABLE NO 4.10

PERFORMANCE ON CUSTOMER SERVICE REPRESENTATIVE

S.No Performance HS S N DS HDS TOTAL

1. Ability to solve 1 115 24 6 3 150

problems
2. Understanding of my 10 137 0 0 3 150
needs
3. Responsiveness 9 138 0 0 3 150
4. Professionalism 9 138 0 0 3 150
5. Courtesy 9 138 0 0 3 150
6. Friendliness 10 137 0 0 3 150
7. Presentation of new 9 138 0 0 3 150
products and
packages
8. TOTAL 57 941 24 6 3 1050
9. MEAN VALUE 8.1 134.4 3.4 0.85 3 150
10. Percentage (%) 5 90 2 1 2 100

INFERENCE:

From the above table it is understood that, 90% of the respondent are satisfied on yarn
customer service representatives, 5% of the respondents are highly satisfied on yarn customer
service representatives, 2% of the respondents are neutral on yarn customer service
representatives and 1% of the respondents are dissatisfied on yarn customer service
representatives. 2% of the respondents are Highly dissatisfied on yarn customer service
representatives.

42
 CHART NO 4.10

PERFORMANCE ON CUSTOMER SERVICE REPRESENTATIVE

100
90
90
PERCENTAGE

80

70

60

50

40

30

20

10 5
2 1 2
0
HS S N DS HDS
LEVEL

43
 TABLE NO 4.11

TIME SPENT BY THE DELIVERY MEN IN RETAILSHOP

S.No Time spent No. Of the Percentage

respondents

1. Below 5 min 3 2
2. 5-7 min 96 64
3. Above 10 min 51 34
Total 150 100

INFERENCE

From the above table it is concluded that 64% of the respondents have stated that delivery
men are spending 5 to 7 min to deliver yarn and remaining 34% of the respondents have stated
that delivery men are spending about 10 min to deliver and only 2% of the respondents are stated
that delivery men spending less than 5 minutes only.

44
 CHART NO 4.11

TIME SPENT BY THE DELIVERY MEN IN RETAIL SHOP

2%

34%

64%

Below 5 min 5-7 min Above 10 min

45
 TABLE NO 4.12

DELIVERY TIME

S.No Delivery time No. of the respondents Percentage

1. 24 hrs 14 9

2. 48 hrs 113 75

3. Above 48 hrs 23 16

Total 150 100

INFERENCE:

The above table it shows that, 9.% of the respondents have stated that are delivered
within 24hrs and 75% of the respondents have stated that are delivered within 48hrs.16% of the
respondents have stated that are delivered beyond 48hrs respectively.

46
 CHART NO 4.12

DELIVERY TIME

80 75

70
PERCENTAGE

60

50

40

30

20 16
9
10

0
24 hrs 48 hrs Above 48 hrs
DELIVERY TIME

47
 TABLE NO 4.13

PERFORMANCE OF THE DELIVERY MEN

S.No Performance HS S N DS HDS Total

1. Time management 1 115 24 7 3 150
2. Handling of materials 8 138 1 0 3 150
3. Cash collection 7 138 2 0 3 150
4. Withdrawal of damage 6 140 1 0 3 150
materials
5. Rechecking the materials 5 142 0 0 3 150
6. Mean 5.4 134.6 5.6 1.2 3 150
7. Percentage 3 90 4 1 2 100

INFERENCE:

From the above table it is concluded that 90% of the respondent are satisfied with the
performance of the delivery men, 3% of the respondent are highly satisfied with the performance
of the delivery men, 4% of the respondent are neutral with the performance of the delivery men
and 1% of the respondent are dissatisfied with the performance of the delivery men and 2% of
the respondent are highly dissatisfied with the performance of the delivery men.

48
 CHART NO 4.13

PERFORMANCE OF THE DELIVERY MEN

100
90
90
PERCENTAGE

80
70
60
50
40
30
20
10 3 4 2
1
0
HS S N DS HDS
LEVEL

49
 TABLE NO 4.14

PROMOTIONAL PROGRAMS

S.No Promotional HS S N DS HDS Total

programs
1. Permanent Point on 70 37 40 0 3 150
sales
2. Temporary Point on 0 141 1 5 3 150
sales
3. Customized Point on 0 137 4 6 3 150
sales
4. Promotional 0 131 7 9 3 150
Programs
5. Displays 0 65 19 63 3 150
6. Sampling Programs 1 137 3 6 3 150
7. No. of the 71 648 74 89 3 900
respondents
8. Mean 11.8 108 12.4 14.8 3 150
9. Percentage (%) 8 72 8 10 2 100

INFERENCE:

From the above table it is observed that, 72% of the respondents are satisfied with the
promotional programmes, 10% of the respondents are dissatisfied with the promotional
programmes, 8% of the respondents are neutral with the promotional programmes and 8% of the
respondents are highly satisfied with the promotional programmes and only 2% of the
respondents are highly dissatisfied.

50
 CHART NO 4.14

PROMOTIONAL PROGRAMS

80
72
70
PERCENTAGE

60

50

40

30

20

8 8 10
10
2
0
HS S N DS HDS
LEVEL

51
 TABLE NO 4.15

SATISFACTION ON COMPANY DISTRIBUTER SERVICE

S.No Satisfication HS S N DS HDS Total

1. Timeliness of deliveries 0 117 20 9 4 150

2. Delivery day schedule 0 138 6 2 4 150

3. Condition of delivered 0 144 2 1 3 150

product
4. Breakage (Compensation) 8 137 2 0 3 150

5. Stock Rotation 1 142 3 1 3 150

6. Accuracy of Order Fill 2 143 2 0 3 150

7. Back Order Fulfillment 4 140 2 1 3 150

8. Phone Answered 4 143 0 0 3 150

Immediately - Available
Lines
9. Accuracy of Invoices 8 138 1 0 3 150

10. Ability to Fill Orders 7 140 0 0 3 150

Completely
11. Clarity of Price List 8 138 1 0 3 150
Information
12. Schemes 8 71 20 48 3 150

13. Display Effectiveness 0 55 19 73 3 150

14. Promotional Effectiveness 0 139 0 8 3 150

15. Overall rating of the 1 145 1 0 3 150

company

52
16. Mean 3 130.8 4.6 8.4 3 150

17. Percentage (%) 2 87 3 6 2 100

INFERENCE:

From the above table it is identify that, 87% of the respondent are satisfied with
distributer service, 6% of the respondent are dissatisfied with distributer service, 2% of the
respondent are highly satisfied with distributer service and 3% of the respondent are neutral with
distributer service.

53
 CHART NO 4.15

SATISFACTION ON COMPANY DISTRIBUTER SERVICE

100
87
90
PERCENTAGE

80
70
60
50
40
30
20
10 3 6
2 2
0
HS S N DS HDS
LEVEL

54
 TABLE NO 4.16

OPINION ON DISTRIBUTOR PERFORMANCE

S.No Distributors performance No. of the respondents Percentage

1. Greatly improved 45 30
2. Improved 94 63

3. Declined 11 7
4. Greatly declined 0 0

5 Total 150 100

INFERENCE:

From the above table it is inferred that 63% of the respondents are stating that overall
performance of the wholesale Distributor of has improved. 30% of the respondents are stating
that overall performance of the wholesale Distributor of are greatly improved. 7% of the
respondents are stating that overall performance of the wholesale Distributor is declined.

55
 CHART NO 4.16

OPINION ON DISTRIBUTOR PERFORMANCE

70
63
60
PERCENTAGE

50

40
30
30

20

10 7

0
0
Greatly improved Improved Declined Greatly declined
OPINION

56
 RANKING ANALYSIS

WEIGHTED AVERAGE

TABLE NO 4.17

RANK THE FOLLOWING FACTORS

S.NO FACTORS WEIGHTED SCORE RANK

1 Price 621 I
2 Brand 186 V
3 Availability 422 IV
4 Offer and Discounts 449 III
5 Quality 575 II

From the above table it is inferred that distributors rank first to concentrating on price,
second for the quality of material, third rank for material availability, offers and discounts are
ranked as four and specific brand is ranked as five.

57
 Ranks I V IV III II

Weight 6.21 1.86 4.25 4.485 5.745

OFFER AND
RANK PRICE BRAND AVAILABILITY QUALITY
DISCOUNTS

I 76.5 0 9 13.5 51

II 37.5 3 33 33 43.5

III 19.5 4.5 39 51 36

IV 13.5 18 58.5 43.5 18

V 3 124.5 10.5 9 1.5

Total 150 150 150 150 150

58
WEIGHTED AVERAGE FORMULA

SAMPLE CALCULATION

Weighted Average for support from superiors

Average Score=

(76.5*5) + (37.5*4) + (19.5*3) + (13.5*2) + (3*1)

_______________________________________

150

=6.21

59
 CHI-SQUARE TEST

The Chi-square test is an important test among the several tests of significance. The Chi-
Square is a statistical measure used in the context of sampling analysis for comparing a variance
to a theoretical variance.

It can also be used to make comparisons between theoretical populations and actual data
when categories are used. Thus, the Chi-Square test is applicable in large number of problems.
The test is, in fact, a technique through the use of which it is possible for all researchers to

(i) Test the goodness of fit

(ii) Test the significance of association between two attributes and
(iii) Test the homogeneity or the significance of population variance.

2= (Oij-Eij)2

_________________

Eij

Where

Oij= Observed frequency of the cell in ith row and jth column

Eij= Expected frequency of the cell in ith row and jth column

If the calculated Chi-Square value is greater than the table value the null hypothesis is
rejected and alternate hypothesis is accepted.

If the calculated Chi-Square value is less than the table value the null hypothesis is
accepted and alternate hypothesis is rejected.

The Chi-Square test has been applied to test the following hypothesis framed for the
study. The hypothesis tested using Chi-Square tests are as follows:

60
 TABLE NO 4.18

DISTRIBUTORS EXPERIENCE AND OVERALL SATISFACTION

TOWARDS DISTRIBUTORS

S.NO HS S N DS HDS TOTAL

Below 2 0.4 29.5 0.7 3.5 0 34
years
35 1.5 31.6 1.3 2.5 0.07 37
68 1.9 28.5 5.1 2.5 0 38
above 9 0.6 37.1 1.33 1.9 0 41
Total 4.4 126.7 8.43 10.4 0.07 150

TESTING OF HYPOTHESIS:

Null Hypothesis (H0):

There is no significant relationship between retailer experience and satisfaction of the

respondents with regard to the distribution and re distribution towards textile industry with
special reference to yarn.

Alternative Hypothesis (H1):

There is a significant relationship between retailer experience and satisfaction of the

respondents with regard to the distribution and re distribution towards textile industry with
special reference to yarn.

FORMULA:

O Ei
2

2 = i

Ei

61
Where, Oi-refers to the Observed frequency, Ei-refers to the Expected frequency

Column tot al x Row total

Ei =
Grand total

Where, Oi-refers to the Observed frequency, Ei-refers to the Expected frequency

Chi square= 5.924177017

DEGREE OF FREEDOM:

= (R-1) (C-1)

= (4-1) (5-1)

= (3) (4)

= 12

RESULT:

Factors Degree of Table value Calculated Relationship

freedom value

Retailer
Experience And
12 1.782 5.924177017 Significant
Satisfaction

INFERENCE:

Alternative hypothesis is accepted, because the calculated value is higher than the table value. So
it is concluded that there is significant relationship between retailer experience and satisfaction
of the respondents with regard to distribution and re distribution towards textile industry with
special reference to yarn.

62
 TABLE NO 4.19

RELATIONSHIP BETWEEN MONTHLY PURCHASE OF THE

RETAILER AND SATISFACTION TOWARDS DISTRIBUTORS

S.NO HS S N DS HDS TOTAL

0 1.6 0.4 0 0 2
Below 500

0.3 38.7 1 5 0.1 45

501-1500

1.1 30.8 2 3 0 37
1501-3500

1.1 30.4 1.9 1.6 0 45

3501-7000

0.9 39.4 0.5 0.2 0 21

Above 7000

Total 3.4 140.9 5.8 9.8 0.1 150

TESTING OF HYPOTHESIS:

Null Hypothesis (H0):

There is no significant relationship between monthly purchase and satisfaction of the

respondents with regard to the distribution and re distribution towards textile industry with
special reference to yarn.

Alternative Hypothesis (H1):

There is significant relationship between monthly purchase and satisfaction of the

respondents with regard to the distribution and re distribution towards textile industry with
special reference to yarn.

63
FORMULA:

O Ei
2

2 = i

Ei

Where,Oi-refers to the Observed frequency, Ei-refers to the Expected frequency

Column tot al x Row total

Ei =
Grand total

Chi square= 31.91563506

DEGREE OF FREEDOM:

= (R-1) (C-1)

= (5-1) (5-1)

= (4) (4)

= 16

RESULT:

Factors Degree of Table value Calculated Relationship

freedom value
Distributor
Experience And 16 1.746 31.91563506 Significant
Satisfaction

64
INFERENCE:

Alternative hypothesis is accepted, because the calculated value is higher than the table
value. So it is concluded that there is significant relationship between monthly purchase and
satisfaction of the respondents with regard to distribution and re distribution towards textile
industry with special reference to yarn

65
 CHAPTER-V

5.1 FINDINGS

It is found that Maximum 45% of the respondents are earning income from cotton yarn
of Rs.30001 - 40000.
The organization is having vast experience of distributors where52% of the respondents
are having above 9 years experience in cotton yarn.
The Maximum 45% of the respondents are purchasing yarn for rupees above 7000.
Most of the Distributors (79% ) are deals with combed cotton in their shops.
The purchase level of the respondents is 72% through Distributor Sales Representatives.
Placing the order through Distributors salesman only once in a week is maximum 59%
of the respondents
Majority 60% of the sales representatives are visiting the shops once in a week.
Maximum 62% of the respondents stated that the sales representatives are spending
above 10 15 min to sell yarns.
90% of the respondents are satisfied with the customer service representatives.
The 64% respondents have stated that delivery men are spending 5 to 7 min to deliver
yarn.
75% of the respondents agree that they are receiving yarn within 48 hrs.
Maximum 90% of the respondent are satisfied with the performance of the delivery
men.
The 72% respondents are satisfied with the promotional programmes.
The 87% respondent are satisfied with distributer service.
Maximum 63% of the respondents are stating that overall performance of the wholesale
Distributor of has improved.

66
5.2 SUGGESTIONS

Instead of giving immediate trade discount to the bulk purchases, the company shall
accumulate all those discount and issue once in a year to increase the value of the trade discount.
The retailers are statisfied with the point of purchase materials, the salesman are not statisfied
with the sticking quality of the point of purchase materials. While analyzing the dissatisfaction of
the salesmen it is found that a considerable amount of time is spent on affixing the Point of
purchase materials and the sticking quality of the Point of purchase materials is also not so good
to immediately paste in the retailing shop. They have to directly involve to collect the feedback
from various customers. They can create trust among the Distributor by taking immediate
corrective actions for the problems like shortage and damage and also concentrate in credit
facility of the Distributors to extend their service for Distributors required. The organization has
to check their product to reach the Distributor in timely and regularly. Because it can be increase
the sales volume and brand Image. The Industry has to fix the price very standard and make
aware of their product to the Public.

67
5.3 CONCLUSION

Opportunity is always knocking, goes a splinter thought of the popular definition. The
trick is to open the door every time it knocks. It clearly indicates from the study that the effective
promotion model and effective distribution strategy will take any company which is under textile
segment to a greater height. The field research and dialogue with Salesmen and retailers formed
the foundation for this report evaluated how distribution and redistribution effectively take place
in yarn. It represents a work in progress, both from a research and evaluation perspective and in
terms of the companys own journey in creating a new distribution model.

68
 BIBLOGRAPHY

TEXT BOOKS

Arvind Ajay Singh - Marketing & Distribution Methodology, RBA publishers

first review edition,2007.
C.R. Kothari-Research Methodology methods and techniques, New age
international publication second revised edition ,1996.

Waters, D. An Introduction to Supply Chain Management, Palgrave Macmillan,

Ltd,2003.

Rosenbloom, B. Marketing Channels: A Management View, Seventh Edition,

South-Western, Cengage Learning,2004.

Stern, L. W.; El -Ansary, A. I.: Marketing Channels, 5th Ed., Prentice-Hall, 1996.,
according to: Kotler, 2001.

JOURNALS.

Yongkyu Kim, (1998) "A study on marketing channel satisfaction in

international markets", Logistics Information Management, Vol. 11 Issue: 4,
pp.224-231,
Dickerson, K. G. (1999). Textiles and apparel in the global community (3rd ed. Upper
Saddle River NJ, Merill.
Wells, L.E., Farley, H., & Armstrong, G.A., 2007. The importance of packaging design
for own-label food brands. International Journal of Retail & Distribution Management,
35 (9), 677-690.
Ampuero, O., & Vila, N., 2006. Consumer perceptions of product packaging. Journal of
Consumer Marketing, 23(2), 100-112.

WEBSITIES

1. www.textileindia.com

2. www.wikipedia.org

3. www.citehr.com

4. www.textilelibrary.com
69
 APPENDIX

QUESTIONNAIRE

1.Name:

2.Age:

a) 25-30 years b) 31-40 years c) 41-50 years d) above 50 years

3. Name of the shop:

4.Income:

a) below 20,000 b) 20,001-30,000 c) 30,001-40,000 d) 40,001-50,000

5. Distributor experience:

a) below 2 years b) 3-5 years c) 6-8 years d) above 9 years

6. What is the weekly purchase of cotton yarn in meters?

a) Below 500 b) 501 1500 c) 1501-3500 d) 3501-7000 e) About 7000

7. what kind of cotton yarn you need?

a) carded yarn b) combed yard

8. What method do you usually use to place your orders?

a) Direct sales representative b) Purchase from Wholesale shops

9. How often would you place the order?

a) Weekly twice b) Weekly once c) twice in a month d) Once in a month

70
10. How often would the sales representative visit your shop?

a) Weekly twice b) Weekly once c) Once in a month

11. How long the salesman spends to take order in your shop?

a) Below 5 min b) 10-15 min c) above 20 min

12.Please rate the performance of the company Customer Service Representative:

S.No OPTIONS HS S N DS HDS

a. Ability to solve problems
b. Understanding of my needs
c. Responsiveness
d. Professionalism
e. Courtesy
f. Friendliness
g. Presentation of new products and
packages

13. How long the delivery man spends in your shop?

a) Below 5 min b) 5-7 min c) above 10 min

14. Delivery time:

a) 24 hrs b) 48 hrs c) above 48 hrs

71
15. Please rate the performance of the delivery man?

S.No OPTIONS HS S N DS HDS

a) Time management
b) Handling of materials
c) Cash collection
d) Withdrawal of damage materials
e) Rechecking the materials

16. Please rate the effectiveness of the company promotional programs:

S.No OPTIONS HS S N DS HDS

a. Permanent Point of sales
b. Temporary Point of sales
c. Customized Point of sales
d. Promotional Programs
e. Displays
f. Sampling Programs

17. Please rate the service performance of company compared with your next largest supplier in
each of the service areas listed. First, rate our performance:

S.No OPTIONS HS S N DS HDS

a) Timeliness of deliveries

b) Delivery day schedule

c) Condition of delivered material

d) Breakage (Compensation)

72
 e) Stock Rotation

f) Accuracy of Order Fill

g) Back Order Fulfillment

h) Phone Answered Immediately

Available Lines
i) Accuracy of Invoices

j) Ability to Fill Orders Completely

k) Clarity of Price List Information

l) Schemes

m)
Display Effectiveness

n)
Promotional Effectiveness

o)
Overall rating of the company

18. How do you rate the company's overall service performance?

a) Greatly improved b) Improved c) Declined d) Greatly declined

19. Rank the Following Factors:

S.NO FACTORS RANK

1 Price
2 Brand
3 Availability

73
 4 Offer and Discounts
5 Quality

20. If you could change or improve just one thing about the company what would it be?

_________________________________________________________________

74