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INTRODUCTION
1.1 Background of the Study
The economy of Nepal is predominately an agricultural one. More than 90% of the
economically active people are depended on agriculture for their livelihood. Low
productivity of this sector is one of the reasons for Nepal and on the other hand it is
one on the least developed countries in the world. The prospects, for overall economic
development will be brighter only in the present structure of the economy with
predominant dependence on traditional agricultural, can be gradually transformed
through the process of industrialization. Industrial development can play a highly
meaningful role in replacing unemployment and substitutions and imports through
increasing domestic productions and improving in the balance of payment situation in
favor of the country.
We Know, Nepal is one of the landlocked-country having mixed economy. It is
recognizing as the one having full of natural resources and beauties. But it may lack
behind in terms of economic development and proper utilization of resources
comparison to its neighbors China and India. Nepal has many natural resources like:
water, minerals and forest. But due to the lack of fund and technology these resources
has been idle.
Nepal requires the investment to be increased for the maximum utilization of its
potential resources. The manufacturing as well as non-manufacturing industries are
needed for the economic development of the country. Here non-manufacturing
company refers to the service oriented industry like tourism industry, banking and
insurance, education, communication service, hotels etc. Manufacturing includes all
those who are engaged in producing the goods. Manufacturing industries not only
help the nation in utilizing its unused resources but also it helps in increasing the GDP
as well as increases the job opportunities. Therefore, increase in peoples income
ultimately leads to the increase in saving. This helps to increase the investment.
Therefore, manufacturing industries acts as a catalyst for the development of the
economy and trade.
Manufacturing industries has main functions of producing goods or the products. But
only producing is not all in all. Different aspects plays vital role for the success. One is
marketing or the marketing strategies of a particular firm.
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behaviors) on their target consumers shoppers and retail partners. These Growth
Opportunities emerge from changes in market trends, segment dynamics changing and
also internal brand or operational business challenges.
Real-life marketing primarily revolves around the application of a great deal of common
sense, dealing with a limited number of factors in an environment of imperfect
information and limited resources complicated by uncertainty and tight time scales. Use
of classical marketing techniques in these circumstances is inevitably partial and uneven.
Thus, for example many new products will emerge from irrational processes and the
rational development process may be used (if at all) to screen out the worst non-runners.
The design of the advertising and the packaging will be the output of the creative minds
employed: which management will then screen often by gut-reaction to ensure that it is
reasonable.
For most of their time, marketing managers use intuition and experience to analyze and
handle the complex and unique being faced; without easy reference to theory. This will be
flying by the seat of the pants or the gut-reaction where the overall strategy coupled
with the knowledge of the customer which has been absorbed at most by a process of
osmosis, will determine the quality of the marketing employed. This almost instinctive
management is what is sometimes called coarse marketing; to distinguish it from the
refined aesthetically pleasing form favored by the theorists.
1.5Limitation of Study
The study will have some limitations. Basically the study is done for the partial
fulfillment for the award of the degree of Bachelor in Business Administration. Times
constraints, financial problems, lack of research experience will be the primary
limitation and secondary limitation:
a. The study will be centered only to Khajurico food industry.
b. It doesnt include other aspect like management, finance, human resource
management.
c. The truth of the research result is based upon the available data from the primary
source.
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Chapter Four:
Data presentation, analysis and interpretation of data will be included in fourth
chapter.
Chapter five:
And finally, the finding, conclusion and bibliography will be included in chapter five.
CHAPTER TWO
REVIEW OF LITERATURE
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Event
IRRIGATION
INDUSTRIAL
REVOLUTION
FOOD PRESERVATIVES
PACKAGING
Explanation
The use of some form of irrigation is well documented
throughout the history of civilization. It has enables food
production to occur in areas previously too hostile for
plants and to counter the effects of drought.
Resulted in mass production of food products at lower cost
and consistent characteristics.
Classified into two main groups, antioxidants that delay or
prevent deterioration of foods by oxidative materials and
antimicrobial agents that inhibit the growth of spoilage and
pathogenic microorganisms in food.
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PASTEURIZATION
TRANSPORTATION
PESTICIDES
NUTRITION
All of the aforementioned technological developments have played a major role in the
evolution of the food and beverage industry. There have also been some business
developments that have had an impact on the current state of the industry.
Explanation
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FUTURE MARKETS
GOVERNMENT AGENCIES
PRODUCT BRANDING
FRANCHISING
Event
Conducted study of food industry, 55 cases in 7 regions
included in the program study.
Food industry approved for inclusion in ISP
Coordinated issue papers and appeals settlement
guidelines developed.
At present there are various food industries in Nepal. Some of them are listed below with
their respective address.
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Khajurico Nepal was established in 1990 as a family owned cottage industry with a brand
name of Khajuri foods. This company was registered as a private limited company under
the cottage and small industry act of the Government of Nepal. Khajuri Foods has started
with single product, baked bread (pauroti). Khajuri Foods had been expanded in 1994
with diversified products, cookies and puff pastry. The brand name of Khajuri Foods has
been changed in 2003 from Khajuri Foods to Khajurico Nepal.
In- house capabilities, strong horizontal integration, and the ability to take decision in
short periods of time, we can change our strategy, modify production layout and process
buy new technology if necessary for the new production process, and go for product
diversification in a matter of days. Khajurico Nepal have an unique labor force because
all production workers are women. It shows that Khajurico believes on women
empowerment for the development of sustainable economic development of the country.
Khajurico have three departments: Production, Marketing and Administration and
Finance. Khajurico Nepal has continuously/ frequently taking technical and managerial
expert services/ consultancies from national and international experts for the
improvement of industry and to upgrade the knowledge and skills of the work force in all
aspects relating to development of the industry as well as improvement of the quality of
life of its worker.
Khajurico Nepal is situated at Champapur (Chapagaun), Lalitpur District, about 10
kilometers south of Kathmandu, a capital city of Nepal. The factory building is
constructed on the foothills of Mhabharat Range in a picturesque landscape having round
the year pleasant environment, pollution free and panoramic Himalayan Views.
Source:
Field
Survey,
2015
Pastry
1. Puffino Special Mini pastry (Only of Out Side valley)
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Pricing
Having defined the overall offering objective and selecting the generic strategy you must
then decide on a variety of closely related operational strategies. One of these is how you
will price the offering. A pricing strategy is mostly influenced by your requirement for net
income and your objectives for long term market control. There are three basic strategies
you can consider.
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A SKIMMING STRATEGY
If your offering has enough differentiation to justify a high price and you desire
quick cash and have minimal desires for significant market penetration and
control, then you set your prices very high.
A MARKET PENETRATION STRATEGY
If near term income is not so critical and rapid market penetration for eventual
market control is desired, then you set your prices very low.
A COMPARABLE PRICING STRATEGY
If you are not the market leader in your industry then the leaders will most likely
have created a price expectation in the minds of the marketplace. In this case you
can price your offering comparably to those of your competitors.
Promotion
To sell an offering you must effectively promote and advertise it. There are two basic
promotion strategies, PUSH and PULL.
The PUSH STRATEGY maximizes the use of all available channels of distribution to
push the offering into the marketplace. This usually requires generous discounts to
achieve the objective of giving the channels incentive to promote the offering, thus
minimizing your need for advertising.
The PULL STRATEGY requires direct interfere with the end user of the offering. Use of
channels of distribution is minimized during the first stages of promotion and a major
commitment to advertising is required. The objective is to pull the prospects into the
various channel outlets creating a demand the channels cannot ignore.
There are many strategies for advertising an offering. Some of these include:
Product Comparison advertising:
In a market where your offering is one of several providing similar capabilities, if
youre offering stacks up well when comparing features then a product comparison
ad can be beneficial.
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Distribution
You must also select the distribution method(s) you will use to get the offering into the
hands of the customer. These include:
On-premise Sales involves the sale of your offering using a field sales organization
that visits the prospects facilities to make the sale.
Direct Sales involves the sale of your offering using a direct, in-house sales
organization that does all selling through the internet, telephone or mail order
contact.
Wholesale Sales involves the sale of your offering using intermediaries or
middle-men to distribute your product or service to the retailers.
Self-service Retail Sales involves the sale of your offering using self-service retail
methods of distribution.
Full-service Retail Sales involves the sale of your offering through a full service
retail distribution channel.
Of-course, making a decision about pricing, promotion and distribution is heavily
influenced by some key factors in the industry and marketplace. These factors
should be analyzed initially to create the strategy and then regularly monitored for
changes. If any of them change substantially the strategy should be reevaluated.
The Environment
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Environmental factors positively or negatively impact the industry and the market growth
potential of your product/service. Factors to consider include:
Government actions Government actions (current or under consideration) can
support or detract from your strategy. Consider subsidies, safety, efficacy and
operational regulations, licensing requirements, materials access restrictions and
price controls.
Demographic changes Anticipated demographic changes may support or
negatively impact the growth potential of your industry and market. This includes
factors such as education, age, income and geographic location.
Emerging technology Technological changes that are occurring may or may not
favor the actions of your enterprise.
Cultural trends Cultural changes such as fashion trends and life style trends may
or may not support your offerings penetration of the market.
The Prospect
It is essential to understand the market segment(s) as defined by the prospect
characteristics you have selected as the target for your offering. Factors to consider
include:
The potential for the market penetration involves whether you are selling to past
customers or new prospect, how aware the prospects are of what you are offering,
competition, growth rate of the industry and demographics.
The prospects willingness to pay higher price because youre offering provides a
better solution to their problem.
The amount of time it will take the prospect to make a purchase decision is
affected by the prospects confidence in your offering, the number and quality of
competitive offerings, the number of people involved in the decision, the urgency
of the need of your offering and the risk involved in making the purchase decision.
The prospects willingness to pay for product value is determined by their
knowledge of competitive pricing, their ability to pay and their need for
characteristics such as a quality, durability, reliability, ease of use, uniformity and
dependability.
Likelihood of adoption by the prospect is based on the criticality of the prospects
need, their attitude about change, the significance of the benefits, barriers that exist
to incorporating the offering into daily usage and the credibility of the offering.
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The Product/Service
You should be thoroughly familiar with the factors that establish product/service as strong
contenders in the marketplace. Factors to consider include:
Whether some or all of the technology for the offering is proprietary to the
enterprise.
The benefits the prospect will derive from use of the offering.
The extent to which the offering is differentiated from the competition.
The extent to which common introduction problems can be avoided such as lack
of adherence to industry standards, unavailability of materials, poor quality
control, regulatory problems and the inability to explain the benefits of the
offering to the prospect.
The potential for the obsolescence as affected by the enterprises commitment to
product development, the products proximity to physical limits, the ongoing
potential for product improvements, the ability of the enterprise to react to
technological change and the likelihood of substitute solutions to the prospects
needs.
Impact on customers business as measured by costs of trying out your offering,
how quickly the customer can realize a return from their investment in your
offering, how disruptive the introduction of your offering is to the customers
operations and the costs to switch to your offering.
The complexity of your offering as measured by the existence of standard
interfaces, difficulty of installation number of options, requirement for support
devices, training and technical support and the requirement for complementary
product interface.
The Competition
It is essential to know who the competition is and to understand their strengths and
weaknesses. Factors to consider include:
Each of your competitors experience, staying power, market position, strength,
predictability and freedom to abandon the market must be evaluated.
Your Enterprise
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Development
A review of the strength and viability of the product/service development program will
heavily influence the direction of your strategy. Factors to consider include:
The strength of the development manager including experience with personnel
management, current and new technologies, complex projects and the equipment
and tools used by the development personnel.
Personnel who understand the relevant technologies and are able to perform the
tasks necessary to meet the development objectives.
Adequacy and appropriateness of the development tools and equipment.
The necessary funding to achieve the development objectives.
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Production
You should review your enterprises production organization with respect to their ability
to cost effectively produce product/services. The following factors are considered:
The strength of production manager including experience with personnel
management, current and new technologies, complex projects and the equipment
and tools used by the manufacturing personnel.
Economies of scale allowing the sharing of operations, sharing of production and
the potential for vertical integration.
Technology and production experience.
The necessary production personnel skill level and/or the enterprises ability to
hire or train qualified personnel.
The ability of the enterprise to limit suppliers bargaining power.
The ability of the enterprise to control the quality of raw materials and production.
Marketing/Sales
The marketing and sales organization is analyzed for its strengths and current activities.
Factors to consider include:
Experience of Marketing/Sales manager including contacts in the industry
(prospects, distribution channels, media), familiarity with advertising and
promotion, personal selling capabilities, general management skills and a history
of profit and loss responsibilities.
The ability to generate good publicity as measured by past successes, contact in
the press, quality of promotional literature and market education capabilities.
Sales promotion techniques such as trade allowances, special pricing and contests.
The effectiveness of your distribution channels as measured by history of
relations, the extent of channel utilization, financial stability, reputation, access to
prospects and familiarity with your offering.
Advertising capabilities including media relationships, advertising budget, past
experience, how easily the offering can be advertised and commitment to
advertising.
Sales capabilities including availability of personnel, quality of personnel.
Location of sales outlets, ability to generate sales leads, relationship with
distributors, ability to demonstrate the benefits of the offering and necessary sales
support capabilities.
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Customer Services
The strength of the customer service function has a strong influence on long term market
success. Factors to consider include:
Experience of the customer service manager in the areas of similar offerings and
customers, quality control, technical support, product documentation, sales and
marketing.
The availability of technical support to service your offering after it is purchased.
One or more factors that causes your customer support to stand out as unique in
the eyes of the customer.
Accessibility of service outlets for the customers.
The reputation of the enterprise for customer service.
Conclusion
After defining your strategy you must use the information you have gathered to
determine whether this strategy will achieve the objective of making your enterprise
competitive in the marketplace. One of the most important assessments is described
below:
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CHAPTER THREE
RESEARCH METHODOLOGY
3.4 Sampling
The target population of this study is very large. It is almost impossible to include the
whole population in the study. So, out of these population only 100 consumers, and 300
outlets have been taken from different urban areas, and the method used for this study is
judgmental sampling. The logic behind using judgmental sampling is that population
under study is very large, time and resource constraints have compelled the researcher to
adopt judgmental sampling method.
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CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND INTERPRETATION
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b. Distributor will use its best efforts to sell companys products to reputable and
financially sound traders or parties providing satisfactory consumer service
throughout the territory.
c. Distributor is authorized to enter into written agreements within the traders
relating to the purchase, resale and service of companies products within the
territory but on formats approved by company for this purpose.
d. In order to provide service and ensure intensive distribution of the companys
products, the distributor agrees to provide and maintain certain infrastructure
relating to vehicles, godown space, number of staff including cycle sales man
etc. The detail of such requirement will be mutually agreed and communicated
separately and may be revised periodically, keeping in view of the market
needs.
e. Distributor will be entitled to receive support under the distributor support
program, which the company announces from time to time. The details of such
support will be discussed and communicated periodically. The company
reserves the right to announce such program as per the needs of the area of the
distribution.
f. Distributors will be provided R.D facility at the time of new launching.
g. Company has already established its image for the quality of the product and
the taste of the product so that company needs not many advertisements.
According to the field visit different raw data are collected and now some of those data
are shown with help of pie charts and bar graphs. These facts are collected through the
samples and may not represent the same in case of population.
Figure no: 1
Percentage of People who knows about Khajurico Products
70
60
50
40
Aware
30
20
60
40
10
0
Male
Female
Consuming Age
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30-40; 20%
20-30; 30%
Table no: 2
Showing Consuming Age
Gender
Male
Female
Source: Field Survey, 2015
Percentage
40
60
Figure no: 3
Product Lines
10%
30%
Cookies
Puffino
Biscuits
60%
Table no: 3
Showing Product Line
Product Lines
Percentage
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Cookies
30
Puffino
60
Biscuits
10
Figure no: 4
Consumption
Table no: 4
Table Showing Consumption
Consumption level
Percentage
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1 Packet
1-5 Packets
5-10 Packets
Above 10 Packets
Source: Field Survey, 2015
60
25
12
3
From the bar graph shown above, percentage of people who consumes 1 packet of
Khajurico product at a time is 60. Large numbers of people are found satisfied from
the single packet of Khajurico product form the collected data. 25 percentages of
people consumes 1-5 packets at a time whereas 5-10 packets of Khajurico products
are consumed by 12 percentages of people at a time. Above 10 packets are consumed
by a very less percentage of people, which is just 3 percentage.
Figure no: 5
Expenses
70
60
50
40
Expenses
30
20
10
0
Rs 0-20
Rs 20-30
Rs 30-40
Rs 40-50
Above 50
Table no: 5
Table Showing Expenses
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Expenses
Percentage
Rs 0-20
Rs 20-30
10
Rs 30-40
20
Rs 40-50
60
Above 50
Figure no: 6
Consumption Purpose
12%
15%
10%
Breakfast
Lunch
3%
Parties
Get together
Gifts
60%
Consumption Purpose
Breakfast
Lunch
Parties
Get-together
Gifts
Source: Field Survey, 2015
Percentage
15
60
3
10
12
Khajurico products are mainly consumed or used for launch. From the collected data
from various sources we came to know that 60 percentage of people from various age
groups consumes Khajurico products at lunch.
Figure no: 7
Buying Outlet
Groceries
General stores
Teashop
Groceries
Teashop
General stores
Departmental store
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Outlets
Percentage
General store
65
Teashop
Groceries
32
Departmental store
Most of the people buy Khajurico cookies from general stores. According to the pie chart
and our collected data from various sources, 65 percentage of people buy khajurico
cookies from general stores. Groceries are the second place people buy khajurico cookies.
About 32 percentage buy cookies from groceries. Least percentage of people who buys
khajurico cookies from teashop is 3.
Figure no: 8
Role of Advertisement
80
70
60
50
40
30
20
10
0
Strongly Agree
Agree
Disagree
Strongly Disagree
25
70
5
0
Percentage of people who agree that advertisement plays an important role in buying
decision is 70. According recent collected data, we came to know that advertisement
plays vital role for the popularity of products.
Chapter Five
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This study is basically concerned with the marketing policies of Khajurico food and
industry pvt. Ltd. This is the last chapter which presents the findings and conclusion of
the project. It includes the findings and conclusion of the study.
Brand awareness is very high; everyone is familiar with the khajurico products.
Puffs are available and known by almost every customers as well as retailers.
Premium cookies with five flavors were known by few.
Most of the retailers did not have any idea or any kind of information on this new
product of Khajurico.
New advertisement aired by the company were viewed by only few retailers,
consumers seem to be clueless.
A new scheme which is provided by the company i.e. of returning the cartoons and
saving the extra charge is unknown. And where the scheme has been applied,
retailers are not being able to understand the full advantage of the scheme.
Problems
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Irregular supply.
Cookies packaging is transparent due to which inner cookies is seen from outside,
Customers can see if a cookie is broken or mislead.
Vehicles transportation unavailable for distributors.
Irregular distribution, Supervision over market is weak.
Target customers are not reached as per the vision.
Traditional type of selling is still in the market.
Proper brand outlet for direct selling is missing.
Customer survey and feedback research should be conducted for the betterment of
the industry.
Attitude of the distributer with the retailers and their irresponsibility in providing
the full information regarding any new scheme and new products.
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