Summer Training Project Report

On

A STUDY ON CUSTOMER SATISFACTION TOWARDS

CYLINDER SERVICE AT BPCL LTD
AT
SOBHAGYA AGENCIES, DELHI.

Submitted for the partial fulfillment of the Award

Of
Master of Business Administration
DEGREE
(Session: 2017- 2019)

SUBMITTED BY
NITIN GUPTA

UNDER THE GUIDANCE OF

MR. YASHWANT

Bharati Vidyapeeth Deemed University

1
 Candidate’s Declaration/Certificate

I Nitin Gupta hereby declare that the work which is being presented in this report entitled “A

Study On Customer Satisfaction Towards Cylinder Service at BPCL

Ltd. ”is an authentic record of my own work carried out under the supervision of “Mr.
Yashwant”

The matter embodied in this report has not been submitted by me for the award of any other
degree.

Dated: Nitin Gupta

MBA 3rd Semester

This is to certify that the above statements made by the candidate are correct to the best of my
knowledge.

Assistant. Professor: Mr.Yashwant Department: MBA

Date: ………………… Date: …………

2
 ACKNOWLEDGEMENT

Making a project for a BPCL LTD Company is a challenging task. Amidst a busy schedule and

a work demanding high levels of specificity, it was very difficult to create a project report on “A

STUDY ON Customer Satisfaction Towards Cylinder Service at BPCL

Ltd”.

I extend my gratitude to and to my faculty guide Mr.Yashwant without his expertise, guidance

and knowledge; I would not have been able to do justice to this project. I am grateful to him for

all his support and guidance inspite of his busy schedule.

I would like to thanks all my respected Faculties and project incharge of Bharti vidyapeeth

college MBA department who time to time guided me with their valuable suggestions and made

this endeavor a successful one.

DATE:

PLACE:

3
 TABLE OF CONTENT

PARTICULARS PAGE NUMBER

Chapter-1

INTRODUCTION
Chapter-2

RESEARCH METHODOLOGY
Chapter-3

CONCEPTUAL DISCUSSION
Chapter-4

DATA ANALYSIS
Chapter-5

FINDINGS AND CONCLUSION

Chapter-6

SUGGESTIONS

4
 CHAPTER – 1

INTRODUCTION

INTRODUCTION

5
With my interest in international business I had decide to joined G.S.IMPEX which deals in

international trade ,there with my interest I got the profile of marketing ,this company is situated

at H-1, 103, Garg Tower, Netaji Subash Palace, Pitam Pura Distt Centre, New Delhi - 110034,

India. Service related to custom clearance, logistic in export & import etc is providing there, way

work as Freight Forwarder agent.

My topic for summer training is ‘A STUDY ON LOGISTIC IN EXPORT & IMPORT AT

G.S Impex Company’ for which I collected the primary and secondary data. Primary data was

collected through a self administrated questionnaire. This questionnaire aims to gather

information related to logistic in export & import condition in NCR area, did EDI system is

helpful or not, did company are satisfied with freight forwarder company, what are the problem

facing by the company in logistic of export & import so that by removing them we can increase

the logistic market in India and mane other thing. Before starting report take a short idea about

logistic and logistic in India.

Logistics

Logistics is the art of managing the supply chain and science of managing and controlling the

flow of goods, information and other resources like energy and people between the point of

origin and the point of consumption in order to meet customers' requirements. It involves the

integration of information, transportation, inventory, warehousing, material handling, and

packaging.

The operating responsibility of logistics is the geographical repositioning of raw materials, work

in process and finished inventories where required at the lowest cost possible.

Definition of logistic
6
The word of logistics originates from the ancient Greek logos (λόγος), which means “ratio,

word, calculation, reason, speech, oratio”.

Logistics is an idea considered to have transformed from the military's need to supply them

selves as they moved from their base to a forward position. In ancient Greek, Roman and

Byzantine empires, there were military officers with the title ‘Logistikas’ who were responsible

for financial and supply distribution matters.

The Oxford English dictionary defines logistics as: “The branch of military science having to do

with procuring, maintaining and transporting material, personnel and facilities.”Another

dictionary definition is: "The time related positioning of resources." As such, logistics is

commonly seen as a branch of engineering which creates "people systems" rather than "machine

systems"

Importance in the Indian Context

7
Logistics is about moving materials, information and funds from one business to another

business or from a business to the consumer. Logistics is an important part of the business-

economic system and is a major global economic activity. In fact, 10-15% of product costs are

logistics related. World wide logistics is about 2 Trillion US dollars. For any country, the

logistics cost are estimated to be between 9 – 20% of GDP. Logistics is a necessary evil to move

the material from the seller to the buyer and there is generally no value addition to the product.

Hence efficiency and cost effectiveness provide competitive advantage.

Over the last decade, the logistics costs have come down from 15% to 9% in the USA.

In olden days logistics was local, involving storage and material movement from one city to

another city by train or truck. The lowering of trade barriers by various countries, combined with

rapid advances in global transportation and information technology, has led to the proliferation of

global manufacturing networks. Now manufacturing and services are global to take advantage of

low cost wage structures and also to reach the local markets.

In global manufacturing of this kind, components may be sourced from several countries,

assembled in yet another country, and distributed to the customers all over the world.

Information transfer regarding the location and status of moving inventory, payments and also

the customs paper work plays a big role i efficient logistics. These networks are not generally

under single ownership but are group formations of independent companies in alliance for a

specific and special purpose. They compete with similar cooperating networks. Such networks

are common in all industrial sectors including the automobile, pharmaceutical, and aero-space,

electronics, computer, food, and apparel industries.

COMPANY PROFILE

8
GS Impex is world famous customs clearance agents based in Delhi (India).

With our exceptional Airport Customs Clearance, export & import freight

forwarding, we have carved a niche for ourselves in the international market.

PROFILE With its strong customer network, GS Impex has

established a brand image amongst its world-based clientele. We are one of the leading freight

forwarding agents and Customs Clearance Agents in India that specialize in providing you

quick yet hassle free services like airport customs clearance, import and export of air cargo,

project planning services, issuance of licenses, etc. to anywhere across the world. We undertake

all your assignments from collection of document to delivery of consignments.

OUR SERVICES

At GS Impex, we have all solutions to meet your import and export requirements. Here is the

brief synopsis of what we offer to our world-based clientele.

9
  Customs Clearance

 Import/Export container bookings

 Import/Export of Air Cargo

 Project Planning

 Issuance of licenses under project etc. from relevant ministries

 Registration/Conciliation of projects

 Freight booking of break bulk parcel cargoes, includes heavy lifts

 Inland Transportation

 Physical mounting of heavy units in their foundations

 Chartering brokering for container and bulk vessels

Ask for Our Services

Experience / Major Projects Handled

During the recent earthquake in year 2005 in Jammu & Kashmir, We handled App. 250 Tons of

cargo by Air from the Netherlands & China. We were the only agents in India who captured the
10
complete job for the rescue operation by the Indian Govt. We managed to make arrangements for

pickups, freight forwarding, Customs Clearance Jobs at odd hrs, trucking and charters of IL- 74

for sending the material at rescue operation at a very critical stage.

In the subsequent year GSI established its name by carrying out various projects one after the

other successfully delivering all project cargoes to various clients' sites in time and providing

services which were not experienced by our clients before.

GSI thus moved on to create a good name in respect of absolute clarities in contracts, honesty

and dedication towards clients' work and requirements. It was able to justify the presented image

with its performance, which can be verified substantiated by our references.

GSI also initiated consulting on critical aspects, functioning, nuances of shipping industry,

logistics movements, custom formalities and technical aspects of heavy lift movements to clients

who were unaware of such details and have had bad experiences with various organizations in

past due lack of it. GSI won a lot of appreciation and faith for correct guidance and a value add

not provided by other organizations to these clients.

Claim & Recovery

The distinctive feature that GS Impex provides you is to get your cargo insured throughout its

way. Our aim indeed is to provide you secure business liaison and mutually fruitful relationship.

For any of the losses that you meet with, the insurance company would bear the whole cost.

To facilitate your business we provide services like Insurance Law, Claims, Recovery,

Chartered Engineers Certificate, Surveyor etc.

Domestic International

Operations Operations

(Customs (Freight Forwarding)

Clearance)
11
  Chennai  China

 Mumbai  Germany

 Hong Kong
 New Delhi
 Italy

 Korea

 Malaysia

 Netherlands

 Singapore

 Bagdad

 Pakistan

 Nepal

 Taiwan

 U.K

 U.S.A, Brazil &

Australia

Table no. 1.1

OUR CLIENT We specialize in catering to all your import and

export requirements as we are thoroughly experienced and obtain repeat business from our

clients who have diverse requirements. We act as C&F agents who take care of all your cargo

requirements at international level. We have a strong customer base in Hong Kong, Singapore,

Middle East and Europe. Our clients are the big corporate houses such as MMTC, De'smat, Birla

VXL Ltd, Marconi etc.

12
OUR STAFF we are equipped with well qualified experienced

trained staff supported by fully computerized documentation and armed with the latest

communication equipment in the customs clearance department who can guarantee you the best

services in this field.

WE BELIEVE

We at GS Impex, we believe establishing a long-term relationship. The feedback which we have

received from our clients highlights their enormous satisfaction. We welcome all your

suggestions and would be pleased to answer your queries if any.

Our Achievements and Strengths

 During the recent earthquake in Jammu & Kashmir, we handled the relief project acting

as liaison for all international pickup and delivery of relief material in the rescue areas.

 We offer 24x7 services and with the authorization of Govt. of India, we provide custom

clearance services for all time bound cargo upon arrival of shipments and specialize in

handling consignments pertaining to :

13
  Religion

 Hospitals

 Societies

 Exhibition

We are also a specialist in handling break bulk shipments

Our Commitment

we are committed to achieve complete customer satisfaction by maintaining a high level of

consistency in providing trustworthy services to our esteemed customers. Our sophisticated

system of working backed by rich resources enables us to provide speedy services and to

maintain a lasting business relationship with our clients.

14
Freight Services

G.S. Impex's worldwide freight services ships to anywhere in the world with

programmed on-time collection and delivery. Our expertise offers clients timely and

cost-effective solutions that meet their specific needs.

Air Express

Clients requiring reliable airfreight services can count on G.S. Impex's expertise. We

offer airfreight import, export, transshipment and drop shipments to and from all

major cities in the world with programmed on-time delivery and collection. Our

airfreight service features:

 Direct airfreight services to all destinations in the world.

 Economy services to reduce freight cost with choice of reliable carriers.

 Worldwide availability of import and export consolidation services

Sea Freight

G.S. Impex's deep ocean freight services include sea freight import, export,

transshipment and drop transshipments to the major ports of the world.

Our service features include:

15
  Shipping goods in full container load, ocean cargo consolidation, bulk cargo

and customized payload to suit special needs.

 Regular services to and from various destinations.

 Frequent sailings with back-up services and facilities worldwide.

Scheduled Consolidation

G.S. Impex is your one-stop logistics solutions provider. Besides freight forwarding,

we consolidate cargo from suppliers and arranges for storage in the warehouse at the

airport. Our service includes stuffing the cargo into containers.

Preferred Delivery

Just let us know when you want your cargo delivered, and G.S. Impex will make sure

it will reach you safely and timely.

Multimodal Transshipment

Worried that your shipment may be held up by poor coordination? Be assured that

G.S. Impex's experienced transshipment experts will arrange for the clearance of sea

freight import and coordinate for your cargo to take the first available connecting

flight to its destination.

Our service features:

 Providing the best possible mode of combined traffic.

16
  Ensuring the best use of time and cost factor to maximize client'

competitiveness in today's market.

 Connecting Asia Pacific and the Indian Subcontinent with Europe, North and

South America in the manner that best suits clients' needs.

Project Forwarding

G.S. Impex arranges for timely imports into India and delivers the cargo to

consignee's premises.

Air-Land-Sea Charter

G.S. Impex provides scheduled air-land-sea charters for any specific size or weight

shipment as required by clients. No matter where your shipment is going worldwide,

you can rely on G.S. Impex to arrange it.

Marketing Strategy of the G.S.IMPEX

As in next chapter I will discuses on the that logistic is growing like any thing, government

is see to word this industry also whit growing industrialization, globalization and

17
 privatization, market is increasing and due to that competition is also to necessary to

maintain profit as well as reduce the cost also to maintain over self, for out sourcing is the

best option, logistic is the 90 % out sourcing job I had explain in logistic topic also. So with

increasing in industrialization, globalization and privatization work and job is also going to

increase so we can say that logistic is also going to be increasing.

So by seeing past record of company and present situation of market we can say future is

bright. If I took about the present strength of company they believe in long run policy, cost

minimization to increase the profit, focus on Delhi to Hong Kong is main focus are through

(air-sea) , company believe that we have to improve and change as per market required, they

do advertising in Exim news paper, Yellow pages. Company is also having there on personal

web site, company is also having there owned business promoters which do work in

prospecting marketing that I had explain in review of literature , company is having there

owned agent in the market how sale there services. That means company is working on

marketing mix that I had explain in review of literature. Company is working on innovative

idea for marketing there development that to I explain in review of literature.

Need of Study

Trade logistics, or the capacity to connect to international markets to ship goods, is critical for

developing countries to improve their competitiveness, reap the benefits of globalization, and

18
fight poverty more effectively in an increasingly integrated world. Following are the causes of

need to study -

 How to improve the market for logistic

 Present conditions are of freight forwarder or export and import

 What kind of services are providing by freight forwarder

 Role EDI is really help full in India logistic system or not

 What is present scenario of export and import in NCR

 Number of shipment and cargo by an exporter & importer.

 Are the cargo & shipment are move through FCL or LCL

 To know the number of shipment taking place per month/year

 What are the problem related to export and import processes

 Is new foreign trade policy is helpful or not

 Which mode is selected by the company to export and import

 On what basis did exporter and importer select the freight forwarder agency

 What a freight forwarder does to improve their services

 This research provides an insight of the commitment & services offered by freight

forwarder, which is main mode of logistics for international trade.

19
 CHAPTER – 2

RESEARCH METHODOLOGY

SCOPE OF THE STUDY

1. Outsourcing, Research & Development of IT enabled Logistics: India is a globally

acknowledged IT powerhouse. This strength must be exploited by Indian companies to

20
 develop specific capabilities in IT-enabled Logistics such as the development and

management of logistics planning and coordination systems. Leading Indian IT

companies can complement their IT expertise with logistics domain knowledge to

develop 4PL capabilities for global manufacturing and service industries.

2. Logistics for Large Infrastructure and Engineering Projects: The recent focus on

infrastructure has given birth to a wave of projects such as the construction of airports,

seaports, industrial parks and national highways. Often such projects run into costly time

and budget overruns. These overruns can however be easily reined in through proper

logistics management and coordination of various activities.

3. IT systems for International Trade Logistics: One of the key contributing factors for

the inefficiencies of the Indian manufacturing and logistics sector is the complexity of the

international trade documentation process. Internationally, pioneering countries such as

Singapore and Hong Kong have implemented automated trade systems such as Trade Net

and Digital Trade Transportation Network for trade documentation and customs permit

applications. The UN has estimated that such systems can save up to 3% of import value

through efficiencies resulting from automated and standardized trade documentation.

Such systems would make Indian goods more competitive globally. CII Logistics 2003

Theme Paper is also saying this

OBJECTIVE OF STUDY

The objective of the study is to come out for freight forwarder which are operating there

operation in various regions worldwide and are very reliable in terms of certain perspectives on

the basis of which they are selected by their exporter and importer.

21
The perspectives which were focused at the time of conducting the study are following:

 To know about the logistic and its importance for export – import.

 To improve the market for logistic

 To present conditions are of freight forwarder or export and import

 To know the kind of services provided by freight forwarder

 To know whether the role EDI is really helpful in India logistic system or no

 To know the problem related to export and import processes

 To know the mode selected by the company to export and import

 To know the basis did exporter and importer select the freight forwarder agency

 To know what a freight forwarder does to improve their services

RESEARCH METHODOLOGY

SAMPLE DESIGN

SAMPLE UNIT: - All companies are from NCR are deal in export & import.

22
SAMPLE SIZE: - 200 company

SAMPLE REGION: - Delhi NCR region only

SAMPLING PROCEDURE: - Random Sampling

DATA COLLECTION METHOD

PRIMARY DATA:

23
Primary data was collected through a self-administrated questionnaire. This questionnaire aims

to gather information related to logistic in export & import condition in NCR area, did EDI

system is helpful or not, did company are satisfied with freight forwarder company, what are the

problem facing by the company in logistic of export & import so that by removing them we

can increase the logistic market in India. To know about the logistic and importance for India

How to improve the market for logistic ,Present conditions are in favor of freight forwarder or

export and import ,What kind of services are providing by freight forwarder ,Where India stand

in global world, EDI is really help full in India logistic system or not, Did computerization is

helpful in their tracking system, What are the problem related to export and import processes,

Did new foreign trade policy is helpful or not, Which mode is selected by the company to export

and import, On what basis did exporter and importer select the freight forwarder agency, What a

freight forwarder do to improve their services What is present scenario export and import in

NCR, Number of shipment and cargo take place by an exporter & importer. Did cargo &

shipment are move through FCL or LCL, to know the number of shipment takes place per

month/year. To know the major destination from over to export and import do trading

SECONDARY DATA:

Secondary data was collected through magazines, research papers, internet etc.

RESEARCH INTRUMENTS

QUESTIONNAIRE DESIGN:

24
As the questionnaire is self-administrated one, the survey is kept simple and user friendly. Words

used in questionnaire are readily understandable to all respondent. Also technical jargons are use

to ensure that there is no confusion for respondents.

LIMITATIONS

 The Indian logistics industry suffers from inadequate infrastructure, complex tax

laws and insufficient technological aids, which acted as a limitation while

conducting the study.

 The Indian logistics market is not sophisticated from an infrastructural and

procedural point of view.

 The logistics industry in India is still at a developing stage.

 Because of huge potential & less service providers the commitment level plays an

important role in this industry.

 The work force in this industry is less educated & not well trained.

 Company’s dose not gives time for questionnaire & tries to avoid the answer

many times.

 I am having time limitations, money and lack of resources I am not able to collect

information from large number company.

 This survey is held in some specific sector company only.

25
 CHAPTER 3

CONCEPTUAL DISCUSSION

LITERATURE REVIEW

26
Logistics

Logistics is defined as the broad range of activities concerned with effective and efficient

movement of semi-finished or finished goods from one business to another and from

manufacturers/distributors/retailers to the end consumers. The activities within the sphere of

logistics include freight transportation, warehousing, material handling, protective packaging,

inventory control; order processing, marketing, forecasting, and customer service. The Council

of Logistics Management (CLM) has also formulated the following definition of logistics with a

flow and process orientation.

“The process of planning, implementing, and controlling the efficient, cost-effective flow and

storage of raw materials, in-process inventory, finished goods, and related information and

financials from point of origin to point of consumption for the purpose of conforming to

customer requirements”

Logistics and its Importance in the Indian Context

Logistics is about moving materials, information and funds from one business to another

business or from a business to the consumer. Logistics is an important part of the business-

economic system and is a major global economic activity. In fact, 10-15% of product costs are

logistics related. Worldwide logistics is about 2 Trillion US dollars. For any country, the logistics

cost are estimated to be between 9 – 20% of GDP. Logistics is a necessary evil to move the

material from the seller to the buyer and there is generally no value addition to the product.

Hence efficiency and cost effectiveness provide competitive advantage. Over the last decade, the

logistics costs have come down from 15% to 9% in the USA.

In olden days logistics was local, involving storage and material movement from one city to

another city by train or truck. The lowering of trade barriers by various countries, combined with

27
rapid advances in global transportation and information technology, has led to the proliferation of

global manufacturing networks. Now manufacturing and services are global to take advantage of

low cost wage structures and also to reach the local markets.

In global manufacturing of this kind, components may be sourced from several countries,

assembled in yet another country, and distributed to the customers all over the world.

Information transfer regarding the location and status of moving inventory, payments and also

the customs paper work plays a big role in efficient logistics. These networks are not generally

under single ownership but are group formations of independent companies in alliance for a

specific and special purpose. They compete with similar cooperating networks. Such networks

are common in all industrial sectors including the automobile, pharmaceutical, and aero-space,

electronics, computer, food, and apparel industries. Thus, logistics and supply chain management

are of fundamental importance to any economy. Since logistics involves global movement of

materials, information and funds from country to country it requires excellent state of the art

country infrastructure such as airports, sea ports, Internet and other IT and finance related

facilities.

Having good logistics infrastructure and culture is becoming a prerequisite for attracting global

manufacturing and service companies in to the country.

EXIM

FTP, Annual supplement

28
Mr. KAMAL NATH MINISTER OF COMMERCE & INDUSTRY GOVERNMENT OF

INDIA had issue this Annual supplement 2008.

Original ANNUAL SUPPLEMENT 2008

TO FOREIGN TRADE POLICY 2004-09

FOREWORD

Four years ago we had announced India’s first ever integrated Foreign Trade Policy for the

period 2004-09. At that time we had indicated two major objectives, namely

(a) To double our percentage of global merchandise trade within 5 years, and

(b) To use trade expansion as an effective instrument of economic growth and employment

generation.

I am pleased to say that our achievements have exceeded our expectations. Not only have we

fulfilled our promises in substantial measure, but we have achieved these remarkable results in

just four years, instead of five.

In 2004 our exports stood at a little over US $ 63 billion. In 2007-08, they have exceeded US $

155 billion; our exports are not just double what they were 4 years ago, but 2½ times that. We

have managed an average cumulative annual growth rate (CAGR) of 23%, year on year, way

ahead of the average growth rate of international trade.

Our total merchandise trade – exports and imports together – will be almost US $ 400 billion this

past year, accounting for nearly 1.5% of world trade. If the trade in services is added to this, our

commercial engagement with the world would be in the region of US $ 525 billion.

29
We have delivered on our second objective as well: that of fashioning trade into an instrument of

economic growth and employment generation. Our total trade in goods and services is now

equivalent to almost 50% of our GDP. This is unprecedented in India’s modern economic history.

On the issue of employment, it is our estimate that during the last 4 years increased trade activity

has created 136 lakh new jobs. I have always maintained that exports are not just about earning

foreign exchange but about boosting our manufacturing sector, creating large scale economic

activity and generating fresh employment opportunities.

What is more remarkable about all these achievements is that they have been accomplished in

the face of appreciation of the rupee (by more than 12% in the last year alone), high interest

rates, spiraling oil prices, withdrawal of some GSP benefits to India by other countries and

general international economic slowdown in some of our major trade markets. In spite of all this

our exporters have shown great resilience. For this, they deserve our congratulations.

It is in this context that I am happy to present the final Annual Supplement to the Foreign Trade

Policy for 2004-2009. In this Supplement, we have proposed several innovative steps, which

include the following:

i) To promote modernization of our manufacturing and services exports, the

import
duty under the EPCG scheme is being reduced from 5% to 3%.
ii) Refund of tax on a large number of services relating to exports has already

been announced by the Government. A few remaining issues regarding refund

of service tax on exports would also be resolved soon.

iii) Income tax benefit to 100% EOUs available under Section 10B of Income Tax

Act is being extended for one more year, beyond 2009.

iv) Sports and toys are mainly produced by our unorganized labour intensive

sector. To promote export of these items and also to compensate disadvantages

30
 suffered by them, an additional duty credit of 5% over and above the credit

under Focus Product Scheme is being provided.

v) Our export of fresh fruits and vegetables and floriculture suffers from high

incidence of freight cost. To neutralize this disadvantage, an additional credit

of 2.5% over and above the credit available under VKGUY is proposed.
vi) Interest relief already granted for sectors affected adversely by the

appreciation of the rupee is being extended for one more year.

vii) The DEPB scheme is being continued till May 2009.

CURRENT ISSUES

We still face many structural problems, which need to be addressed. We have to plan an

integrated strategy to tackle these issues. We cannot rest our laurels in terms of trained

manpower. We need to establish a chain of sector-specific skill development institutes. Early

implementation of a single Goods and Services Tax (GST) would enable simultaneous

reimbursement of duties and taxes in line with government’s policy that these should not be

exported.

Export Credit Guarantee Corporation of India (ECGC) has completed its fifty years of

operations, satisfactorily in the last financial year. Continuing with its mission to provide a

variety of services that would strengthen the exporters by way of minimizing the payment risks

and their financial position, ECGC has also drawn plans to operationalize the domestic credit

insurance cover for the exporters and its factoring services during the year 2008-09. ECGC is

also expanding its distribution channels by entering into Corporate Agency Arrangements with

Commercial Banks, Export Promotion Councils and Exporters’ Association. The remarkable

achievements in trade and commerce of the past four years gives me the confidence to spell out

an even more ambitious target – that of achieving a 5% share of world trade in both goods and

services by the year 2020. In practical terms this means a four-fold increase in our percentage
31
share in the next 12 years. Considering that world trade is itself increasing, this would translate

into an eight-fold increase in absolute terms. Ambitious the target may be, but achieving it is not

impossible. The task is difficult, but the prize is great. If we achieve it, India will once more

become the trading superpower it was two centuries ago.

KAMAL NATH

MINISTER OF COMMERCE & INDUSTRY

GOVERNMENT OF INDIA

Logistics Growth Strategies

32
 While logistics is generally given importance in manufacturing, it has a vital and important role

to play in agriculture and service industries. In this paper, we make the following important

points.

1. In India manufacturing accounts for 25% of GDP, about USD 125 Billion and provides

employment for 16% of the population. In other developing economies it is generally 40% of

GDP. Recently there is a debate, following the success of IT companies in the global markets,

whether India should jettison manufacturing and concentrate on IT and other service sectors. We

strongly believe, however, that CII Logistics 2003 Theme Paper this is based on wrong premises

and that on the other hand a ten-fold growth in manufacturing will be very important for India.

We cite the following reasons in support.

a.75% of India’s working population (600m) has education middle school or below. Only Labor

intensive manufacturing and related services can generate employment in adequate numbers

b. Experience of Europe, America, Japan, the Tiger economies, and now China shows that

Wealth creation is possible only through International trade oriented manufacturing. More

importantly, it is essential for India to increase its proportion of Global GDP through growth in

all the three sectors of the economy.

It has currently 1/6 of population and 1/60 of the global GDP. Planned or wild, growth is

essential and important. This could be through attracting MNCs to India or through

Indian companies becoming MNCs and raising funds through NASDAQ or large number

of small companies raising capital from international venture sources.

2. With products being uniform, standardized and commoditized: same colas, same PCs, same hand

phones sold throughout the world, the logistics has become a dominant part of the
33
competitiveness equation. In future, all competitive supply chains will have aggressive and

excellent logistics partners. A well-articulated logistics strategy is a must for India. While it may

take decades to develop state of- the-art air, rail, road and shipping infrastructure, it is necessary

immediately to develop appropriate supply chain clusters to support the three sector of the

economy.

A supply chain cluster is a geographically concentrated, self-flourishing ecosystem

comprising of production systems, shippers, logistics service providers, IT vendors,

infrastructure providers, regulatory agencies, research institutions, consultants and other

logistics-related organizations that leverages on the interdependencies between them to

provide highly efficient and effective logistics solutions and create innovative new

solutions.

Simultaneous development of the supply chain cluster companies is possible with careful

planning and aggressive marketing to attract MNCs in manufacturing and third party Logistics

providers (3PLs). This is important since they bring with them global experiences and also

provide the obvious economies of scale advantages.

3. As we said before, logistics in direct supply chains: raw material to product delivery to the

customer is given importance throughout the world. Logistics is equally important in other

two sectors of the economy i.e. Agriculture and Service sectors. The techniques of supply

chain management developed for manufacturing are also directly applicable in case of

agriculture.

a. Improving distribution efficiency of the agri-supply chain from farmer to end consumer

through intermediaries such as regional agents, wholesalers, fair price shops, retail stores

and distributors. Mapping the supply chain and using IT for providing the visibility along

the supply chain will improve the efficiencies by orders of magnitude.

34
 b. Manufacture and distribution of fertilizers and farm equipment

c. Transformation of produce into processed and canned food and their subsequent

distribution to consumers and storage along the way. Use of procurements kind of

techniques in restaurants and in food courts CII Logistics 2003 Theme Paper

4.In the service sector, the opportunities are innumerable. In health care, construction industry,

Infrastructure building, and in retailing logistics can play an important and pivotal role to

improve the service levels.

a.In retail services, goods sold through stores are delivered through an elaborate network of

distributors and logistics services.

b. Trade finance services provided by banks complement transportation services provided

by 3PLs.
c. Healthcare services involve coordination between multiple parties of doctors, hospitals,

pharmacists, medical equipment manufacturers, etc. These interactions and processes are

logistics-based. In clinical trials, drugs and patient samples are exchanged between

multiple patients and research institutes.

d. Storage and timely distribution of spare parts for repair and maintenance of heavy

machinery and equipment is an important element of after-sales service ensuring reliable

performance.

Opportunities specific to India

A number of opportunities, specific to the Indian context, present themselves to enterprising

companies. Some of these opportunities are related to addressing national concerns while others

would enable the Indian economy to be internationally competitive.

4. Outsourcing, Research & Development of IT enabled Logistics: India is a globally

acknowledged IT powerhouse. This strength must be exploited by Indian companies to

develop specific capabilities in IT-enabled Logistics such as the development and

35
 management of logistics planning and coordination systems. Leading Indian IT

companies can complement their IT expertise with logistics domain knowledge to

develop 4PL capabilities for global manufacturing and service industries.

5. Logistics for Large Infrastructure and Engineering Projects: The recent focus on

infrastructure has given birth to a wave of projects such as the construction of airports,

seaports, industrial parks and national highways. Often such projects run into costly time

and budget overruns. These overruns can however be easily reined in through proper

logistics management and coordination of various activities.

6. IT systems for International Trade Logistics: One of the key contributing factors for the

inefficiencies of the Indian manufacturing and logistics sector is the complexity of the

international trade documentation process. Internationally, pioneering countries such as

Singapore and Hong Kong have implemented automated trade systems such as Trade Net

and Digital Trade Transportation Network for trade documentation and customs permit

applications. The UN has estimated that such systems can save up to 3% of import value

through efficiencies resulting from automated and standardized trade documentation.

Such systems would make Indian goods more competitive globally. CII Logistics 2003

Theme Paper

Conclusion

India should recognize the extraordinary role logistics plays in economic development and in

enhancing the competitiveness of all the three sectors of the economy. Given the emerging

business and technological trends there are possibilities for the adoption of innovative logistics

solutions specifically designed for India? In addition there is a requirement for an integrated

strategy towards developing logistics and IT infrastructure and also enhancing its industry base.

The resources needed for wholesale development takes enormous amounts of time and resources.

36
A planned phased approach for Integrated Logistics in needed. Our Theme paper is an attempt at

presenting such an approach.

The success of today’s market leaders such as Wal-Mart, Dell, Cisco and Toyota is primarily

based on their superior operational and logistics capabilities.

ECONOMIC RELEVANCE OF LOGISTICS

Even though logistics thinking and practice has progressed rapidly over the last few years, driven

primarily by radical business and technological innovations, the true value and relevance of

logistics in the business ecosystem is rarely appreciated. The importance of logistics in the

economy of a nation is established both, by the size of the logistics industry, and by its ability to

transform and impact all three sectors of the economy, agricultural, manufacturing and services.

In fact investments in logistics infrastructure and services have a multiplier effect on the entire

economy of a nation. A good logistics network can reduce inventory levels in the industry,

increase the market reach of companies and allow them to procure supplies from a larger base of

suppliers.

The importance of logistics in the economy of a nation is established both, by the size of the

logistics industry, and by its ability to transform and impact all three sectors of the economy:

Agriculture, Manufacturing and Services.

Size of the Logistics Industry

Logistics is a major economic activity across the world. The global logistics industry is estimated

at roughly over $2 trillion, with less than 5% outsourced worldwide. Logistics costs on average

account for 10-15% of the final cost of the finished product in the developed world. These

logistics costs, based on studies conducted in the United States include transportation costs

which amount to 7-9% of the cost of the final product, warehousing costs in the range of 1-2%

and inventory holding costs which are 3-5% of the final product cost. In the developing world, it

37
is expected that logistics costs will be higher due to greater inefficiencies in logistics system and

it is estimated that these costs are in the range of 15%-25% of the final cost of the product. In

India the logistics costs are 13% of GDP (CII).

Logistics in India differs from the developed nations in three important aspects.

1. Relatively small manufacturing base.

2. High logistics cost relative to the GDP.

3. The very low penetration of specialist 3PL providers in the country.

State of the Indian Logistics Industry

These effects can be attributed to the lack of proper logistics infrastructure (both physical and

infocomm), disorganized paper-based and manual processes, fragmented supply chains and other

systemic flaws in the country that have resulted in huge process in efficiencies.The lack of a

countrywide infocomm B2B network and the poor. Conditions of roads results in capital being

tied up in huge stockpiles of obsolete goods both in terms of moving inventory as well as at the

factory sites. In addition, the mindset and culture of outsourcing logistics activities to capable

third-party logistics service providers is just emerging. The lack of proper infrastructure has also

resulted in the absence of world-class logistics service providers. In fact, there is no general

awareness of standard logistics practices and due to the protected environment for Indian

industries there was no incentive for companies to improve their operational performance till

recently. A part of the reason is the lack of professionally competent logisticians. Furthermore,

there has been limited concerted effort by the government to articulate an Industry growth policy

and also to prioritize the formation of industry clusters and identification of their logistics needs.

We will elaborate on this later in this paper.

38
Potential savings for India if logistics costs decrease by 1% are approximately $4.8 Billion per

year.

Table no.3.1 State of Indian Logistics

However, if these systemic obstacles are overcome significant benefits can be reaped through the

multiplier effect of better logistics on all economic sectors.

2.2 Logistics in the Three Sectors of the Economy

Logistics sustains all three sectors – agricultural, manufacturing and service - of the economy by

providing life-supporting arteries that transport essential goods and services

Agriculture

The agriculture sector comprises of a number of inter-related value chains.

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1. Agriculture Value Chain: The agriculture supply chain starts with the farmer who

harvests food crops. The farmer sells its harvest to intermediaries such as regional agents,

who comprises of millers and end consumers wholesalers, who in turn sell to distributors,

retail shops and fair price shops who distribute the produce to the end consumer.
2. Supporting Manufacturing Services: The supporting value chain for agriculture comprises

fertilizer producers and distributors, grain distributors, tractor, and farm equipment

manufacturers. Logistics services play an important role in getting these goods to the

farmer and in supporting the production of food crops. Financial institutions, Insurance

agents, government agencies and other organizations play important supporting roles as

well.
3. Processed Food Value Chain: The processed food value chain is responsible for

converting food grains into processed/canned foods and getting it within reach of end

consumers. Increasingly ready-to-eat food products are being targeted by a number of

large manufacturing and the retail distribution companies. Also, linking the chain

restaurants with the grain producers can induce efficiencies.

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Figure 3.1: Supporting Value Chain for Fertilizers

Typically, the Indian agricultural value chain is long and slow. In fact, in many cases the end

distribution of food grains, fertilizers and other agricultural products and services is undertaken

through bullock carts, hand carts. Given that these products are perishable and also subject to

attacks by pests, it is important that transport and storage of these items is undertaken with care.

Currently the chain is full of inefficiencies introduced by various partners along the chain. There

is also a lot of wastage at the interfaces in the chain, as can be seen from the huge stockpiles of

rotting food grains at warehouses across the country. It is also not uncommon to see expired food

products reaching the retail shelf. Agricultural trading and financing activities are also closely

tied up with the logistics of agricultural produce but are still not well understood in the Indian

context.

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Manufacturing

Manufacturing today is driven by global demands and forces. Global manufacturing is

characterized by the staged production of goods by multiple companies across multiple countries

and regions. In a national context, components may be sourced from several different regions,

assembled in another region, and distributed to customers across the country and even across the

world. Logistics plays a critical role in coordinating procurement, manufacturing and distribution

in such a distributed manufacturing environment. A well managed manufacturing logistics

operation can help companies reduce the cost of transportation and minimize inventory, reducing

the cost of inventory holding and freeing up capital. In fact leading companies have successfully

employed logistics and integrated supply chain networks to minimize their costs and

simultaneously improve and differentiate their product and service offerings to their customers.

India has currently 1/6 of global population and 1/60 of the global GDP. Planned or

wild, growth is essential and important. This could be through attracting MNCs to

India or through Indian companies becoming MNCs and raising funds through NASDAQ or

large number of small companies raising capital from international

Venture sources.

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Integrated Supply Chain Networks

An Integrated Supply Chain Network (ISCN) is a collection of independent companies,

possessing complementary skills and integrated with streamlined material, information and

financial flows, that work together to meet the market demand. The formation of an ISCN is

typically driven by the most dominant company in the supply chain that is seeking to focus on its

core competencies and leverage on the manufacturing and logistics expertise of other companies

in the chain. We refer to these dominant companies as network owners. Network owners dictate

the structure of the ISCN through their choice of companies constituting the ISCN and ensure

proper coordination between them. In the automotive and hi-tech value chain the OEMs typically

play the role of the network owner. In case of the retail value chain the distributor is the normally

the network owner.

An ISCN would normally be composed of best-of-breed suppliers, contract manufacturers,

retailers and service providers held together by the logistics network of third-party logistics

providers (3PLs), the Internet and the financial network provided by banks, as shown in Figure 2.

The companies in an ISCN can be distributed across geographically distant regions, giving rise

to a global supply chain network. Information on market requirements and forecasts is

communicated to all stakeholders in the ISCN through the information network, which is

typically the Internet. This initiate’s material movement in the ISCN, with the logistics network

transporting the materials from one production facility to another until the finished goods

ultimately reaches the customer. The upstream transfer of materials between companies in the

ISCN triggers of the downstream payment cycle through the financial network.

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An ISCN can deliver a customized, inexpensive and high-quality product to the customer by

leveraging on the superior capabilities of individual companies in the network and by

coordinating their activities through an Internet-based platform. Moreover, due to the fact that

companies in an ISCN share a common destiny while collectively serving the market,

competition nowadays is no longer between individual companies but between supply chain

networks.

Figure 3.2: Integrated Value Chain Network (Viswanadham 1999)

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Services Sector

Logistics-enabled service chains arise in a number of different contexts. The service sector

amongst others comprises of the financial, healthcare, retail and the telecommunications

industry. A number of processes in these industries are closely related to logistics. For example,

the goods sold through retail stores are delivered through an elaborate network of manufacturers,

distributors and logistics service providers. Trade finance services provided by financial

institutions are complementary to transportation services provided by logistics service providers.

Healthcare services involve a tremendous amount of coordination between multiple parties of

doctors, hospitals, pharmacists, medical equipment manufacturers, medical consumables

manufacturers, etc., all managed through systematic management of patient records. Even

though it might not be very obvious, on closer inspection it may be noticed that all these

processes are logistics-based. Another manner in which logistics manifests itself in service

industries is in the form of supporting after-sales repair and maintenance of goods and products.

The after the sale service sector for aircrafts, automobiles, and other capital goods is a highly

lucrative emerging business. Some of the after-sales services involving logistics include returns

handling of defective goods, spare parts distribution for repair of spoilt items based on service

level agreements, servicing of products over their entire life cycle and reverse logistics for

disassembly and green disposal. The distribution and maintenance of adequate spare parts to

ensure timely repair of spoilt goods for the customer, within promised service level agreements,

is a very important logistical function. Such services are often provided by manufacturers of

automobiles, medical equipment, defense systems and airplanes.

Manufacturing related service industries support after-sales repair and maintenance of products

such as aircrafts and airplanes.

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Figure 3.3: Logistics within Clinical Trial Process

46
 Evolution of Logistical Integration, 1960-2000

Fig no.3.4 Fig 1.1: evolution of logistics integration

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The evolution of logistics has been characterized by an increasing degree of integration, a trend

that was underlined in the 1960s as a key area for future productivity improvements. However,

only with the implementation of modern information and communication technologies did this

assumption become possible. They allow for the integrated management and control of

information, finance and goods flows and made possible a new range of production and

distribution systems. Step by step, and according to improvements in information and

communication technologies, the two ends of the assembly line became integrated into the

logistics of the supply chain: the timely supply of raw materials and components from outside,

and the effective organization of distribution and marketing.

High rack storages, which later became automatically driven or the internal movements of

packages by flat robots were early expressions of logistical engineering. Initially, logistics was

an activity divided around the supplying, warehousing, production and distribution functions,

most of them being fairly independent from the other. With the new organization and

management principles, firms were following a more integrated approach, thus responding to the

upcoming demand for flexibility without raising costs. At the same time, many firms took

advantage of new manufacturing opportunities in developing countries. As production became

increasingly fragmented, activities related to its management were consolidated. Spatial

fragmentation became a by-product of economies of scale in distribution.

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From Push to Pull Logistics

Freight distribution is within a paradigm shift between "manufacture-to-supply" or inventory-

based logistics ("push" logistics) to "manufacture-to-order" or replenishment-based logistics

("pull" logistics). The reliance is shifting from maintaining inventories aimed at approximately

satisfy the demand to a comprehensive data collection system insuring, mainly through on-

demand transport, that supply matches with demand. This trend is accelerated by logistics,

namely a better integration between transport modes and inventory control. Of particular

relevance to the logistics industry has been the emergence of major coordinators and integrators

(third and fourth-party logistics providers) that will improve a part of the supply chain. While a

push logistics system involves a limited level of integration between suppliers, manufacturers

and distributors, a pull logistics system tries to achieve a higher level of efficiency through

integration. Freight flows between components of the supply chain tend to be more frequent and

in smaller batches. In addition, the sharing of demand dependant data (such as sales) helps better

synchronize supply with demand. Reverse logistics also tends to be better integrated in the

system to achieve a higher level of customer service as well as to promote environmental

strategies such as recycling.

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Fig no 3.5 Fig 1.2: From push to pull logistics

50
 Market Development in Logistic

 . Marketing Research
 .Planning
 .4 p of marketing

 .Marketing development

 .Collection of new data base for feature prospecting

Marketing research

Marketing research in the early days was aimed more at finding techniques to increase sales than

to understand customers. Researchers applauded the development of store audits, warehouse

withdrawals, and consumer panels to provide needed information on product movement. Over

time, marketers increasingly recognized the importance of understanding buyers. Focus groups,

questionnaires, and surveys came into vogue. Today the marketer’s mantra is about the

importance of understanding buyers at either the segment or the individual level.

Today’s marketers use a whole bevy of marketing research techniques to

understand customers and markets and their own marketing effectiveness. Here are

some of the major research techniques in use:

• In-home observation. Companies send researchers into homes to study household behavior

toward products. Whirlpool arranged for an anthropologist to visit several homes to study how

household members use large appliances. Ogilvy &Mather sent researchers with handheld video

cameras into homes to prepare a 30-minute “highlight reel” of in-home behavior toward different

products.

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• Other observation. Observation can take place anywhere. Japanese carmakers stood in

supermarket parking lots watching American women strain to lower their groceries into their car

trunks and came up with a better trunk design. McDonald’s executives once a year “work the

counters” to experience customers firsthand. Marketers can learn a great deal by “stapling

themselves to a customer.”

• Focus group research. Companies frequently recruit one or more focus groups to talk about a

product or service under the direction of a skilled moderator. The focus group may number 6 to

10 members who spend a few hours responding to the moderator’s questions and to each other’s

comments. The session is usually videotaped and discussed later by a management team. While

focus groups are an important preliminary step in exploring a subject, the results lack project

ability to the larger population and should be treated cautiously.

• Questionnaires and surveys. Companies gather more representative information by

interviewing a larger sample of the target population. The sample is drawn using statistical

techniques, and the persons are reached either in person or by phone, fax, mail, or e-mail. The

questionnaires typically ask questions that are cod able and countable so as to yield a quantitative

picture of customer opinions, attitudes, and behavior. By including personal questions, the

surveyor can correlate the answers with different demographic and psychographic characteristics

of the respondents. In using the findings, the company should be aware of possible biases

resulting from a low response rate, poorly worded questions, or faults in the interviewing process

and setting.

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• In-depth interviewing techniques. Questionnaires are considered by some to be naive “nose

counting” and their preference is to go deeper into the minds and motivations of consumers

(often called “head is shrinking”). Years ago, Ernest Dichter, who was trained as a Freudian, set a

pattern of “motivational research” where he would enter into deep discussions with respondents

to discern unconscious or repressed motivations. His findings, though interesting, were

sometimes bizarre. For example, he concluded that consumers resist prunes because prunes are

wrinkled and remind people of old age; therefore advertisers should feature “happy young

prunes.” And women don’t trust cake mixes unless adding an egg is required so that homemakers

can feel that they are giving “birth” to a “live cake.” Dichter’s findings lacked “scientific

evidence” and “projectibility” but were always of interest to marketers and advertisers.44 A more

recent technique, the Zaltman Metaphor Elicitation Technique (ZMET), developed by Professor

Gerald Zaltman, seeks to bypass the verbal left brain and dip into the right brain and

unconscious. ZMET asks small groups of

Consumers to collect pictures, create collages, and discuss these in an interview. ZMET claims to

achieve insight into product themes and concerns that do not emerge through verbal research.45

• Marketing experiments. The most scientific way to research customers is to present different

offerings to matched customer groups and analyze differences in their responses. Using split

cable television or mail, companies are able to feature different ad headlines, prices, or

promotions to see which one(s) draw better. To the extent that extraneous variables are

controlled, the company can attribute response differences to offering differences.

• Data mining. Companies with large customer databases can use statisticians to detect in the

mass of data new segments or new trends that the company can exploit. Remember, marketing

research is the first step and the foundation for effective marketing decision making. Herbert

Baum, CEO of Hasbro Inc., said:

53
“Market research is crucial to a corporation’s marketing process. I don’t think anybody

ought to be making marketing decisions without some form of research, because you can

waste a lot of time and money.”

Marketing planning

Your company needs a vision, the vision demands a strategy, the strategy requires a plan, and the

plan requires action. A Japanese proverb says: “Vision without action is a daydream. Action

without vision is a nightmare.” You need to prepare a detailed marketing plan. But it makes

more sense to call it a battle plan. Your plan should give you confidence that you will win the

war before you engage in the first battle. If you aren’t introducing something better, newer,

faster, or cheaper, you shouldn’t enter the market. A marketing plan consists of six steps:

situational analysis, objectives, strategy, tactics, budget, and controls.

1. Situational analysis. Here the company examines the macro forces (economic, political-legal,

social-cultural, technological) and the actors (company, competitors, distributors, and suppliers)

in its environment. The company carries out a SWOT analysis (strengths, weaknesses,

opportunities, and threats). But it should really be called a TOWS analysis (threats, opportunities,

weaknesses, and strengths) because the ordering should be from the outside in rather than the

inside out. SWOT may place an undue emphasis on internal factors and limit the identification of

threats and opportunities to only those that fit the company’s strengths.

2. Objectives. Based on identifying its best opportunities from its situational analysis, the

company ranks them and sets goals and a timetable for achieving them. The company also sets

objectives with respect to stakeholders, company reputation, technology, and other matters of

concern.

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3. Strategy. Any goal can be pursued in a variety of ways. It is the job of strategy to choose the

most effective course of action for attaining objectives.

4. Tactics. The strategy must be spelled out in great detail regarding the 4Ps and the actions that

will be taken in calendar time by specific individuals who are to carry out the plan.

5. Budget. The company’s planned actions and activities involve costs that add up to the budget

that it needs to achieve the objectives.

6. Controls. The company must set review periods and measures that will reveal whether it is

making progress toward the goal. When performance lags, the company must revise its

objectives, strategies, or actions to correct the situation. To facilitate the planning process, your

company should work out a standard plan format to be used by all the divisions and product

groups. This will make it possible for the plans to be reviewed, compared, and evaluated by the

planning or strategy office. One large multinational corporation has a planning office that scores

the various plans before they are approved.

The office applies such criteria as:

• Is the situational analysis fairly complete?

• Are the goals reasonable and reachable in the light of the situational analysis?

• Does the strategy seem adequate to deliver the stated goals?

Deficient plans are returned to division or product groups for revision along suggested lines. The

use of a standard software planning program enables the planners to quickly revise their plans in

response to criticism or unforeseen circumstances. In an advanced case, a company builds a

model to estimate how hypothetical revisions in its advertising budget, sales force size, or prices

will affect sales and profits. The Hudson River Group, for example, has developed marketing

strategy simulators for different companies to help guide the allocation of marketing resources to

their best uses. The benefit of planning may lie less in the plan than in the process of planning.

Dwight Eisenhower observed:

55
“In preparing for battle I have always found that plans are useless but planning is

indispensable.”

No battle plan survives the first battle. It will need constant revision as the battle proceeds. You

may have to redesign your airplane while you are in the air. Make sure that you are not spending

more time preparing plans than achieving results. Professor James Brian Quinn noted:

“A good deal of corporate planning . . . is like a ritual rain dance. It has no effect on the

weather that follows.”

The battle plan is nothing unless it progresses into work. Plan your work and work your plan.

Marketing plans will not produce a dollar of profit if you don’t implement them. But don’t

confuse motion with action. Winning companies are those that do more of the right things

(effectiveness) and do them better (efficiency).

Marketing mix

Marketing mix describes the set of tools that management can use to influence sales. The

traditional formulation is called the 4Ps—product, price, place, and promotion. From the very

beginning questions were raised about the 4P formulation of the marketing mix.

• Perfume companies wanted packaging to be added as a fifth P. 4P guardians said that packaging

is already in the scheme, under product.

• Sales managers asked whether the sales force was left out because it began with an S. No, said

the guardians, sales force is a promotion tool, along with advertising, sales promotion, public

relations, and direct marketing.

• Service managers asked where services were in the marketing mix, or whether they, too, were

excluded because the first letter was S. Here the guardians said services are part of the product.

As services grew more important, service marketers suggested adding three Ps to the original

4Ps, namely personnel, procedures, and physical evidence.

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• Others suggested adding personalization to the marketing mix. The marketer has to decide how

personalized to make the product, the price, the place, and the promotion.

• In my own case, I suggested adding politics and public relations to the 4Ps, because these can

also influence a company’s ability to sell.

• At one time, I had also proposed escaping from the prison of the letter P by redefining the

essential function of each P:

Product = Configuration

Price = Valuation

Place = Facilitation

Promotion = Symbolization

Robert Lauterborn suggested that sellers should first work with 4Cs before setting the 4Ps. The

4Cs are customer value (not product), customer costs (not price alone), convenience (not place),

and communication (not promotion). Once the marketer thinks through the 4Cs for the target

customer, it becomes much easier to set the 4Ps.. His sales were poor. Then he cut his staff to

five salespeople and lowered his car prices significantly. He did a land-office business. Similarly,

Jeff Bezos, CEO of Amazon, reduced his advertising expenditures and lowered his book prices,

and Amazon’s sales shot up significantly. Setting the 4Ps is difficult because of their interactions.

Take product and place:

• Suppose product is 0 and place is 1. How much is 0 × 1?

Answer = 0.

• Suppose product is 1 and place is 0. How much is 1 × 0?

Answer = 0.

• Suppose product is 1 and place is 1. How much is 1 × 1?

Answer = 3.

57
One selects marketing tools that are appropriate to the stage of the product’s life cycle. For

example, advertising and publicity will produce the biggest payoff in the introduction stage of a

product; their job is to build consumer awareness and interest. Sales promotions and personal

selling grow more important during a product’s maturity stage. Personal selling can strengthen

customers’ comprehension of your product’s advantages and their conviction that the offering is

worthwhile. Sales promotions are most effective for trig- Gering purchases today. In the decline

stage, the company should keep pushing sales promotions but reduce advertising, publicity, and

personal selling. The choice of tools is also influenced by company size. Market leaders can

afford more advertising and use sales promotion more sparingly. Smaller competitors, in

contrast, use sales promotion more aggressively. Consumer marketers tend to emphasize

advertising over personal selling, and business marketers do the reverse. But both tools are

required in both types of markets. Consumer marketers who emphasize push strategies need their

sales force to convince retailers or dealers to carry, promote, and sell the company’s product to

end users. By contrast, consumer marketers who emphasize pull strategies rely heavily on

advertising and consumer promotions to draw customers into stores. For marketing to work, you

must manage the marketing mix in an integrated fashion. Yet in many companies, responsibilities

for different elements of the marketing mix are in the hands of different individuals or

departments.

Marketing development

Each company department carries images or stereotypes of the other departments. Most often

they are not flattering. Furthermore, the departments compete for the available resources, each

making the case that it can spend the money better. All this interferes with harmonious working

relations between departments. Some members of other departments will stereotype the

marketing department as consisting of fast-talking salespeople who cajole a large budget from

58
management without providing any evidence of its impact, as con men who snare customers with

a dishonest pitch, or as hucksters pressing R&D for new bells and whistles rather than for real

product improvements. One engineer complained that the salespeople are “always protecting the

customer and not thinking of the company’s interest!” He also blasted customers for “asking for

too much. Marketers, in turn, are critical of other departments:

• Marketers have difficulties with engineers. Engineers tend to be exact in their thinking, seeing

black and white and missing shades of gray. They tend to describe the product in highly technical

terms rather than in language that most customers would understand. In high-tech companies, the

engineers are king. The engineers look askance at any engineers who went into sales, concluding

that they must be poorly trained. If they went into customer service, they were really losers.

• Marketers see their immediate enemy as the finance people who demand that marketers justify

each expense item, and who hold back as much funds from marketing as possible. Finance

people think mainly of current-period performance and fail to understand that a large part of

marketing expenditures are investments, not expenses, that build long-term brand strength. When

the company hits a slump, finance people’s first step is to cut the marketing budget, implying that

the funds aren’t necessary. The antidote is to work closely with finance to develop financial

models of how marketing investments impact revenues, costs, and profits.

• Marketing people complain about the purchasing people if they buy cheaper inputs that result

in the product not having the quality promised in the value proposition. True, the purchasing

people must keep input costs low, but controls must be established to ensure sufficient quality.

I advise marketers to work more closely with the purchasing people not only to ensure good

quality but to learn from them about selling. Purchasing people are experts at what makes good

salesmanship. Why? Because purchasing people are approached all day long by salespeople and

can tell stories about the difference between effective and poor selling styles. It would be good
59
training for marketers to work in purchasing for a while to learn how to deal with salespeople.

General Electric once developed a game to be played between its own purchasing and sales

personnel to see who would be more effective. The purchasing people won hands down. GE’s

management then said: “If our salespeople cannot sell effectively to our own purchasing people,

how can they sell effectively to our customers’ purchasing people?”

• Marketers have only a few issues with the manufacturing people. They hope that the

manufacturing people produce the products at the specified quality level so that the customers

aren’t disappointed. They also ask manufacturing to make special short runs or add custom

features, but here they encounter some resistance. Manufacturing costs rise when production

changes must be frequently made.

• Marketers find it hard to communicate with information technology (IT) people. The marketers

talk sales, market share, and margin, while the IT people talk COBOL, Java, Linus, and

terabytes. The big mistake is when marketing asks IT to develop a database marketing system,

only to regret commissioning it in the first place once it is finished. Yet marketing needs database

software and supply chain software if customers are to be served well. Clearly, marketing

departments need to add a technical marketer who understands information technology and can

mediate between the two groups.

• Marketers get upset with the credit department when credit refuses to approve a transaction on

the grounds that the prospect might default. The salesperson worked hard to get the sale only to

find that he or she can’t put it through and get recognition for the sale.

• Marketers are annoyed with the accountants who are slow in answering customer questions

about their invoices. Marketers would also like the accountants to give them better measures of

the profitability of different geographical areas, market segments, channels, and individual

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customers. This information would help marketers allocate their efforts closer to the areas of

greater profit.

• Even within the larger marketing group, there are frictions between marketing, the sales force,

and customer service. Marketing began as a function to help the sales force sell better. Marketing

helped by getting leads through advertising, brochures, and other communications. Later,

marketing gathered information to estimate market potential, assign sales quotas, and develop

sales forecasts. Salespeople often have complained about marketing setting sales quotas or

company prices too high, saying that more money should go to the sales force (and less to

advertising) to raise their compensation or to hire more salespeople. When marketing and sales

get into conflict, a sale often wins because salespeople are responsible for short-term results. As

for customer service, this has typically been treated as less important than getting the sale. When

customers complained to customer service, salespeople could resent the watchdog role customer

service plays, although good customer service is in their best interest in the long run. The fact is

that these departments are in active competition for a limited budget, each making the case that

they can spend the money better. Each department also wants to feel important and respected by

the other groups. The challenge is how to break down departmental walls and harmonize the

efforts of different departments to work as a team.

Here are two approaches:

1. Companies would hold meetings of two departments at a time to express their views of each

other’s strengths and weaknesses and offer their suggestions for how to improve their

relationship.

2. Companies are increasingly managing processes rather than functions and putting together

cross-disciplinary teams to manage these processes. The various members begin to appreciate

each other’s point of view, and hopefully this produces better understanding.

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Collection of new data base for feature prospect:-

A business cannot be run only on five or ten clients it needs no. of clients to run the business for

that a company needs large no. of feature prospect to convert them in over clients before going

farther we must know what is marketing by prospecting.

Marketing by Prospecting: -

A system of using marketing tools with prospecting skills. It is a strategy designed primarily for

the small to medium sized business that doesn’t have a large marketing budget. Also, for

divisions within large companies that simply don’t get the big marketing dollars.

Marketing by Prospecting first involves preparing the variety of marketing tools we use to grow

our business. Then, the means we use to get these marketing tools in front of our potential

customers is prospecting skills.

Because the lines between Marketing and Prospecting tend to blur quickly, why not just face

facts - our Marketing work requires Prospecting skills -hence, marketing by Prospecting.

By the way, the reverse also has implications here, prospecting by Marketing, but we will

address that somewhat differently, more on that later.

As I have been writing for the last few weeks, our efforts for Prospecting in the Global

Marketplace involve all the tools used in both our marketing and prospecting programs.

If you have a budget for running TV or mass media campaigns, this material is not for you.

By Marketing we are trying to get the world to know about the products and services we offer.

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By Prospecting we are trying to reach the individuals in the world who can buy our products and

services.

With small budgets, Marketing by Prospecting can be a very effective use of our marketing

dollars.

The marketing materials tools that we create and use are usually – Flyers, Brochures, Pamphlets,

Newsletters, Websites, and even PowerPoint presentations.

Two additional Marketing by prospecting tools that you should consider are Article writing and

Public Speaking.

Writing articles and having them published is really easy these days with the internet.

Write about the various ways your products and services are being utilized to the benefit of your

customers.There are dozens of web article submission services that will publish your articles and

provide them to e-zines along with your contact information including your website.

This may be the perfect way to get published, but realize there are 1,000’s of others doing this, so

we aren’t alone in this market. But it does get your name and information out there. I have had

15 articles published on 6 different submission sites in the last week and they are popping up all

over the place.

I entered my name in Google, and found a lot of my articles listed. I don’t have a feel yet for

what this will generate business wise, but it is another marketing tool and it is absolutely FREE.

If you are able to get published in the “old style” standard media, newspapers and magazines I

suggest you take advantage of them. I know these take time and effort, but pursue this route if

you like. The web submission can be done right now, so give both a shot.

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Speaking to association meetings, trade show conferences, corporate meetings, and other events

may not be for everybody, but it is a tool I personally really like.

You will need to prepare a speech, of course. Then your marketing materials will consist of a

brief overview of the speech and short bio telling why you are the expert on this subject they

should hear. Then you will need to use your Prospecting skills to get that one page document into

the hands (or onto the computer screen) of the meeting planner, program chairman, or who ever

books the speakers. Start off with small local groups, maybe ones in which you may be a

member. So there you have it, the idea of Marketing by Prospecting. Hopefully it is something

we can all use to grow our businesses using the tools of both skills.

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 CHAPTER – 4
DATA ANALYSIS
&
INTERPRETATION

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 1. Are you
Importer-____________Exporter -____________ Both -____________

Ans= Importer - 65%, exporter-25%, both-20%

Figure 4.1

 Number of exporter is more then the importer and both (importer - exporter).
 It show that exporter is more

2. Shipment trough

Sea -____________ Air -_____________ Both-___________

Ans= sea-68%, air – 59%, both -56%.

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 Figure 4.2

 Movement of shipment through Sea is 10% more then the air ways.
 The option both and sea have the difference only 3% over all it is less then only 1%

different in option both and air

 Sea ways are use for have material/shipments

Q3.Did cargo & shipment are move through FCL or LCL

Ans =FCL- 35% , LCL- 65%

Figure4.3
 LCL is 65% which is near doubled to the FCL which onlery 35%

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  Every person in this trade don’t use full container lode because they bock it on there

requirement.
 This thing show that the government need more concentrate on this side.

Q4.Type of commodity (Export/Import) –

(a)Raw material _________________________

(b)Sammie finished material__________________
(c)Finished material______________________
Ans. In case of export (a)0%, (b)40% , (c)60% ,

Exporter:-

Figure4.4
 In case of exporter finished material is exported more then 20% in compare to the

Sammie finished material.

 Raw material is 0%.

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Importer: - In case of import (a) 0% (b) 65 % (c) 35%

Figure 4.5
 Sammie finished material is 65% imported in NCR area.
 Finished material is around 35% which is near to 40% of Sammie finished material.
 Raw material is 0% which shows that we are independent for raw material view.

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Q5. Name the commodity -_______________________________________________________
Ans= Computer, lather material, furniture, stabilizers, servo stabilizers, servo voltage

stabilizers, single phase servo voltage stabilizers, three phase servo voltage stabilizers, air

cooled servo voltage stabilizers, step down transformer, variable transformers.

Computer industry: - UPS systems, industrial UPS systems, voltage stabilizers,

automatic voltage stabilizer. Also available with power conditioning system, lightning

protection systems, surge protection systems and step switch. Etc. Computer stationery,

carbonless paper, plotter rolls, thermal pos rolls, coated paper, do paper, paper rolls,

photo glossy paper, tracing paper, fax rolls and ammonia paper. All kinds of cables for

power control instrumentation, data thermocouple extension, compensating,

telecommunication, coaxial, computer, defiance cables and cables for domestic and

industrial applications .Printed circuit boards, membrane keypads, integrated circuits,

transducers, sensors etc.

Agricultural industry: - Agricultural machinery like diesel engine, water supply pipe

couplings, zero grazing machinery, sugar cane crusher, crop thrasher, crop huller, chaff

cutter, irrigation pumps and wood working machinery.

Later materials and footwear industry: - Footwear, leather footwear, Rajasthani

footwear, embroided footwear, embellished footwear, sequin footwear, thread work

footwear, mojri, leather mojri, Rajasthani mojri, embroided mojri and sequin mojri

Furniture industry: - Garden chairs, other furniture items.

Q6. Are you satisfied with present EDI system in your trade –

70
 (a) Yes ___________________________
(b) No____________________________
(c) Cant say________________________
(d) I don’t know about this_____________

Figure 4.6
 70% company are say are saying that they are satisfied with EDI system,
 8% company are saying that no they are not satisfied they want more well manageable system
 12% are saying can’t say any thing

Q7. Is the present EDI system helpful in reducing the cost as compared to past manual system?

(a) Yes ___________________________

(b) No____________________________
(c) Cant say________________________
(d) I don’t know about this____________

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 Figure 4.7

 95% companies are saying that yes EDI system save time & money.
 2%,2% no or cant say
 3% companies are saying they don’t know about this.

Q8. Are you satisfied with present number of counter freight stations (CFS) for small exporters?

(a) Yes ___________________________

(b) No____________________________
(c) Cant say________________________
(d) It should be increases______________

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 Figure 4.8

 (d) 66% company want that CFS must increase because the market is increasing like any thing it

at developing stage only if it doesn’t gat this kind of basic support then it won’t expand in

feature.
 (a) gat 2%, (b) gat26% (c) gat6% only

Q9. Are you satisfied with services which is provided on ICD/CFS/ GATWAY to the

exporters & importers –

Give your rating for satisfaction
(a) 1__ (b) 2__ (c) 3__ (d) 4__(e) 5__

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Figure 4.9
 Highest satisfaction level is (c) 3 that is 47% of total population
 43% of total population is saying is saying (b) second satisfaction level
 For (d) 30% &(a)1% only
 (e) is highest peak of satisfaction which is zero that proves that maximum person are not

satisfied with the services.

Q10. Problem related to export & import –

(a) Custom clearance - _______________
(b) Forms Filing & filing - _____________
(c) Transportation problem-____________
(d) ware house problem-______________
Ans= (a) 50% (b) 90% (c) 60% (d) 10%

Problem related to export and import

74
 Figure 4.10
 As an over view I find that option (b) Forms Filing & filing is the leading most problem among
the all problem.
 At second (d) Ware house problem.
 At third (c) Transportation problem.
 At fourth (a) Custom clearance.

Q11. Are you using freight Forwarder Company for logistic in export & import and custom

clearance?

(a) No_____________________________
(b) Yes____________________________
(c) Some time_______________________

75
 Figure 4.11
 Yes Company deals in export & import for logistic and custom clearance appoint the

freight Forwarder Company say by 98% of company.

 Only 2% companies are saying that some time only they take the help of freight

Forwarder Company.

Q12. Are you satisfied with present freight forwarder company -(yes /No)

Ans= yes satisfied - 72%, not satisfied -28%

76
 Figure 4.12

 72% company are saying that they are satisfied with there company where as 28% are

saying are saying that they are not satisfied.

CHAPTER- 5
77
 Findings and conclusion

Conclusion

After reviewing the logistic market in I reach to the conclusion that India should recognize the

extraordinary role logistics plays in economic development and in enhancing the competitiveness

78
of all the three sectors of the economy. Given the emerging business and technological trends

there are possibilities for the adoption of innovative logistics solutions specifically designed for

India? In addition there is a requirement for an integrated strategy towards developing logistics

and IT infrastructure and also enhancing its industry base. The resources needed for wholesale

development takes enormous amounts of time and resources. A planned phased approach for

Integrated Logistics in needed. Our Theme paper is an attempt at presenting such an approach.

The success of today’s market leaders such as Wal-Mart, Dell, Cisco and Toyota is

primarily based on their superior operational and logistics capabilities.

Indian logistic in export & import should develop for feature business that is bright and

challenging.

79
 CHAPTER- 6

SUGGESTIONS

SUGGESTIONS

After analyzing the project report I conclude that India is developing country. Due to

globalization international business is increasing day by day, as report is saying logistic in

80
export- import is increasing and to maintain the standard business is the requirements so that we

compete the market ,

 Company should develop and increase there organization size to maintain there services

standard.
 Company should aware there client related to norms, documentation work so that the

problem related to the form filling can be improved.

 Company should adoption of innovative logistics solutions specifically designed for

India.
 There is a requirement for an integrated strategy towards developing logistics and IT

infrastructure and also enhancing its industry base.

BIBLIOGRAPHY

1) Nabhi Exporters Manual & Documentation, New Delhi: Nabhi Publications,

2007.

81
 2) Parasram, Export- What, Where & How, New Delhi: Anupam Publications.,

2004.

3) Khurana P.K. , Export Management, New Delhi: Galgotia Publishing Co.,

2002.

4) Kotler Philip , marketing insights, New Delhi Dorling kindersely (India) Pvt.

Ltd.2006

5) Internet : www.indiamart.com, and some other government and scholars

web site

Questionnaire

Name-________________________________________________________________________

Designatation -_________________________________________________________________

Company name-________________________________________________________________

82
Type of business-_______________________________________________________________

Address of company-____________________________________________________________

_____________________________________________________________________________

Email –_______________________________________________________________________

Phone no.-_____________________________________________________________________

1. Importer-_____________ Exporter -____________ Both -_______________

2. Sea -______________________ Air -______________________ Both-___________

3. Major Destination

-_______________________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

4. FCL - __________________ LCL -_________________

5. Type of commodity (Export/Import) –

(a) Row material _________________________________________________________
(b) Sammie finished material _______________________________________________
(c) Finished material_______________________________________________________

6. Name the commodity

-_______________________________________________________________________

_
________________________________________________________________________
________________________________________________________________________

7. Are you satisfied with present EDI system in your trade –

(a) Yes ___________________________

83
 (b) No____________________________

(c)Cant say________________________

(d) I don’t know about this_____________

8. Are you satisfied with present number of counter freight stations(CFS) for small

exporters-

(a) Yes ___________________________

(b) No____________________________

(c) Cant say________________________

(d) It should be increases______________

9. Are you satisfied with services which is provided on ICD/CFS/GATWAY to the

exporters & importers –

Give your rating for satisfaction:-

(a)1__ (b) 2__ (c) 3__ (d)4__(e)5__

10. Problem related to export & import house-

(a) Custom clearance - _______________

(b) Forms Filing & filing - ______________
(c) Transportation problem-____________

84
 (d) Warehousing problem-______________

11. Are you using freight forwarder company in logistic for export & import and custom

Clarence –

(a) No_____________________________
(b) Yes____________________________
(c) Some time_______________________

12. Are you satisfied with present freight forwarder company - ( Yes /No)

Response -_______________________________________________________________

________________________________________________________________________

________________________________________________________________________

________________________________________________________________________

______________________________________________

85