Final Riyas

8/6/2019 Final Riyas

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CHAPTER - 1

INTRODUCTION

1.1 ABOUT THE STUDY

Marketing is essentially about marshalling the resources of an organization so that they

meet the changing needs of customers on whom the organization depends. As a verb, marketing

is all about how an organization addresses its markets.

Marketing is The management process which identifies anticipates and supplies

customer requirements efficiently and profitably.

Marketing is a total system of interesting business activities defined to Plan, piece,

promote and distribution want satisfying products & services to present and potential consumers

- William. J. Stantion

Marketing is the performance of business activities that direct the follow of goods and

services from the producer to the consumer or user

- American Marketing Association

A social and managerial process, by which individuals and groups obtain what they need

and want, through creating and exchanging product and value with others.

Dealers are in constant need of aggressive, creative and resourceful dealers to get their

products specified, accepted and used by customers. Without informed and capable field dealers,

no distributorship can hope to compete in the marketplace today.

That said, what do you do when one of your dealers isnt performing up to standards?

The key to answering that question is determining the cause of the non-performance

Start by reviewing the obvious. A dealer must have adequate tools, resources and leadership to


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maximize their effectiveness. The review process is a critical component of sales effectiveness.

This review should occur monthly for regularly performing dealers and even more frequently for

dealers that are under-performing. This review enables the sales manager and dealer to discuss,

plan and measure success.

In addition to possessing and capitalizing on certain natural talents and traits, the review process

should encompass the following issues:

1. Knowledge of products, customers and customer organizations

2. Skills in the application of this knowledge

3. Development of a favorable attitude as it pertains to that knowledge and those applied

skills4. Review of all target growth accounts, prospects and long-term target accounts

5. Review of all opportunity reports or the lack of reports

6. Review of specific territory objectives including sales to plan and gross profit to plan

Customer satisfaction begins with a difficult faith; it starts with a commitment to deliver

the result for each customer which is also a concern of the dealers. Hence for a manufacturing

company, in order to satisfy its customers, it is highly important to satisfy its dealers, as they are

the direct customers to them. Establishing satisfaction as the ultimate goal is like the other

ultimate goals of business pursuit of higher profits or shareholders wealth. Perfect dealer service

or satisfaction is one that meets the combined need satisfaction is a systemized service that

involves the entire organization. But many organizations have yet to develop this kind of

awareness of dealer satisfaction strategy.

Dealer Satisfaction begins with the following specific assumptions about companys relationship

with the customers.

1. The dealer service activities focus mainly on existing dealers.

2. Some dealers are more important than others

3. They are the assets.


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4. The dealer is always specific.

The dealer needs and value should influence every aspect of the organization strategy,

employee safety and performance, product and organization strategy, employee safety and

performance, product and service development, sales and marketing programs, operational

procedures and information and measurement system.

Understanding the dealer is critical to the success of any customer focus initiative, the

first step in understanding the dealers is to listen to them. A company needs to hear what its

dealers are saying about its people, product service and vision. Their information helps to

develop meaningful product and service.

Organizations need to listen to their dealer satisfied, dissatisfied neutral and prospective.

As one company executive said, talking to a satisfied customer is talking to myself.

In the past, dealer satisfaction and service was the responsibility of a separate

organization that supported the dealer primarily after the sale. Today, service is also likely to be

interested with the every product accompany offers.

High dealer satisfaction comes from providing effective services. But giving that service

is a continuous activity. It means being efficient, reliable, courteous, curing and professional

every time.

1.2 INDUSTRY PROFILE

The Engineering sector is the largest in the overall industrial sectors in India. It is a

diverse industry with a number of segments, and can be broadly categorized into two segments,

namely, heavy engineering and light engineering. The engineering sector is relatively less

fragmented at the top, as the competencies required are high, while it is highly fragmented at the

lower end (e.g. unbranded transformers for the retail segment) and is dominated by smaller

players.


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The engineering industry in India manufactures a wide range of products, with heavy

engineering goods accounting for bulk of the production. Most of the leading players are

engaged in the production of heavy engineering goods and mainly produces high-value products

using high-end technology. Requirement of high level of capital investment poses as a major

entry barrier. Consequently, the small and unorganized firms have a small market presence.

The light engineering goods segment, on the other hand, uses medium to low-end

technology. Entry barrier is low on account of the comparatively lower requirement of capital

and technology. This segment is characterized by the dominance of small and unorganized

players which manufacture low-value added products. However, there are few medium and large

scale firms which manufacture high-value added products. This segment is also characterized by

small capacities and high level of competition among the players.

User Segments

The major end-user industries for heavy engineering goods are power, infrastructure,

steel, cement, petrochemicals, oil & gas, refineries, fertilizers, mining, railways, automobiles,

textiles, etc. Light engineering goods are essentially used as inputs by the heavy engineering

industry.

Key Growth Drivers of Indian Engineering Sector

The engineering sector in India has been growing on the back of growth in the user industries

and several new projects being undertaken in various core industries such as railways, power,

infrastructure, etc. Capacity creation in sectors such as infrastructure, oil & gas, power, mining,

automobiles, auto components, steel, refinery, consumer durables, etc, is driving growth of the

engineering industry.

Growth of the key user-industries

Governments thrust on the power and construction industries

India being preferred by global companies as an outsourcing destination as it enjoys

lower labor cost and better designing capabilities

Heavy Engineering Sector

The heavy engineering sector can be classified into two broad segments capital

goods/machinery (which is further classified as electrical machinery/equipment and non-

electrical machinery/equipment), and equipment segments. Electrical machinery includes the


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machine tools production in India is contributed by the leading 10 companies in the industry. The

industry has an installed capacity of over Rs 10 bn and employs a workforce (direct/indirect) of

65,000 skilled and unskilled persons.

The machine tool manufacturers in India produce general purpose machinery of

international standards (in terms of quality, precision and reliability). However, they lag behind

in terms of design and engineering capability so as to be able to undertake very high precision

CNC (Computer Numerically Controlled) machines. Due to the gap in technology for special

purpose machines and some categories of CNC machines, import of technology is encouraged to

bridge this gap.

Outlook

We expect demand in the engineering sector to remain healthy primarily on account of the

Governments increased thrust on infrastructure development. The continuing growth of the

manufacturing sector and favorable regulatory policies would provide further boost to the

sectors growth. Fresh investments in the power equipment, metals, oil & gas, and

petrochemicals industries, coupled with robust industrial activity is expected to drive the growth

momentum in the capital goods industry in the near term.

Investment projects worth Rs 218.6 billion were outstanding, as at the end of January

2007, in the electrical and non-electrical machinery industry. The sharp increase in investments

(announced/ proposed/under implementation) witnessed during the last 1 year or so, indicates the

buoyant demand outlook on the user-industry, and thereby on the future prospects of the

machinery industry.


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1.3 COMPANY PROFILE

Mecco industries is a Manufacturers of Air Compressor and Borewell Pumps in

Coimbatore, Tamil Nadu, India. The company brand name Mecco is very popular in the

compressor market and the company has dealers and distributors all over the country. All the

compressors are manufactured with perfection in every aspect. The choice of raw materials to the

finished product the process is keenly watched by companys experienced technical persons.

Mecco industries has created a niche, all its own, as quality manufacturers of air

compressors, Borewell compressors. Established in 1990, Mecco Industries truly symbolizes the

dynamic and enterprising nature of Coimbatore, a city where it is based. Mecco industries

penchant for constant innovation and incredible ideas, coupled with mecco industries stringent

commitment to the highest standards of quality has seen us grow to become the number one

choice of a variety of customers.

Mecco industries forte is state-of-the-art production unit, equipped with the latest

machinery. The firm believers in constant investment in the latest technologies and periodical up

gradation of the same to achieve outstanding results. The company has all the required inspection

equipments, for ensuring the quality of everyone of mecco industries products. Mecco industries

range of machinery is famed for being produced without hardening, expect from outside.

Mecco industries quality range of air compressors Borewell compressor are already a

huge success in All Over India. Mecco industries in-house quality assurance team puts our

products through a series of rigorous quality checks, to ensure that our products satisfy the needs

of even the most discerning of customers. Mecco industries commitment to quality can be

gauged from the fact that we are one among the few manufacturers who give a guarantee for our

range of products.


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A Mecco industry is a leading manufacturer of Air Compressors, Borewell compressor,

based at Coimbatore, South India, a city popularly referred to as the Manchester of South India.

Professionally managed with a stringent commitment to delivering quality products, Mecco

industries has grown by leaps and bounds to become the most preferred choice of a wide range

of clientele, in a remarkably short span of time.

The term in the company if highly talented, competent and qualified professionals

consisting of techno crafts, engineers and skilled workers, with a shared vision of always

meeting or even exceeding customers expectations.

The perfectly understand every clients needs and work with clinical precision to come

out with arange of quality products. Mecco industries biggest testimonial is our ever-increasing

list of clientele.

With over a decade of highly successful experience we are confidently marching towards

attaining our avowed goal of undisputed leadership, in our chosen field.

The company is firm believers in investing in the latest technology and constant up

gradation of the same to attain consistent product results.

All facilities are manned by well trained and dedicated staffs who strive to maintain the

high standards of quality we have set for ourselves.

The company has all the latest testing equipments in Mecco industries production unit.

Every product at Mecco industries is put through a series of rigorous quality checks, before the

ultimate delivery of the product to the customers.

PRODUCT PROFILE

Air Compressor

A Mecco industry is a leading manufacturer of Air Compressors, Borewell compressor,

based at Coimbatore, South India, a city popularly referred to as the Manchester of South India.

Professionally managed with a stringent commitment to delivering quality products, Mecco


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industries has grown by leaps and bounds to become the most preferred choice of a wide range

of clientele, in a remarkably short span of time.

Mecco industries asset is our team of highly talented, competent and qualified

professionals consisting of technocrafts, engineers and skilled workers, with a shared vision of

always meeting or even exceeding customers expectations.

We perfectly understand every clients needs and work with clinical precision to come

out with arange of quality products. Mecco industries biggest testimonial is our ever-increasing

list of clientele.

Borewell Compressor

Description :

-Shell moulded casting

-Interchangeable standardized parts

-Honed cylinders to give extra long life

-crank and connecting rod are made of special alloy steel forgings.

Product Applications :

-Bore well compressor pumps are designed for lifting water from deep bore wells.

-These bore well compressor pumps can be effectively used for Agriculture, Industry and

Domestic purposes.

-The bore well compressor pumps need no foot-valve /jet, hence it is easy to install and maintain.

-Column(s) gives level of water at working condition.

-Water outflow through delivery pipe will be pulsated and not continuous.

-The discharge of water will greatly depend on the yield of bore.

Mecco compressor pumps are designed to draw water from borewells at any depth. the

compressed air will enter in the borewell through air pipe upto the bottom, where it is connected


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to a water pipe which pushes the water to the field, overhead tank or places where the water is

required.

Main Advantages of the Borewell Compressor Pump

Borewell pumps are ideal to tap underground and well water.

These pumps are highly efficient having less maintenance cost and reliable for sturdy

operation.

These pumps can achieve water from the depth up to 400 feet from bore and well.

Only pipe lines are kept in the borewell. The compressor pump and motor can be erected

at any convenient place.

Compressor pumps can be operated with motor or diesel engine.

The water output is mainly depended upon the yield and spring in the borewells.

Moving parts do not come in contact with water and hence last longer. This also ensures

trouble free operation and reliability.

CHAPTER -2

MAIN THEME OF THE PROJECT

2.1 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES

To identify the dealers performance of Mecco industries.

To find the Dealers Satisfaction Level with Mecco industries.

To find the factors influencing the dealers to deal with Mecco compressor.


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SECONDARY OBJECTIVES

To study the relative importance of Mecco industries sale in the overall activities of thedealers.

To study the relative importance of different factors in the dealers decision to be a Mecco

industries dealers.

To get the opinion of the dealers on actions required for improving sales.

2.2 SCOPE AND LIMITATIONS OF THE STUDY

SCOPE OF THE STUDY

The project is focused on the selected dealers in Coimbatore city.

The project focuses the quality of Mecco compressor.

To identify the dealers performance, so that is can create a root for correction and

improvement.


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The study has been undertaken to assess the real opinion and mindset of the dealers

and aids to meet at their expectations in future which in turn will increase the volume

of sales.

The study enables to know the expectation of the distributors and consequently the

customers.

The study covered the business activities of the dealers, their reasons for acquiring the

dealership and also their perception about the actions required to increase the sales of

Mecco Compressor.

LIMITATIONS OF THE STUDY

Non response errors, due to refusals in filling up certain question leads to the

unavailability of data.

Some of the respondents (dealers) were time pressed. This might have introduced small

bias in the study.

The observation made in this study are purely based on respondents (dealers) answers.

The response may be affected by certain personal bias.


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The sample size was limited to 100 general dealers for Coimbatore city.

The time available to the researcher was limited. This necessitated the use of small

sample size.

The observations and conclusions are based on the responses of the dealers who chose the

respond. The views of those who declined to participate in the study are not represented.

The accuracy of the study depends on the correctness of the responses of the respondents.

2.3 RESEARCH METHODOLOGY

RESEARCH

Research can be defined as a scientific and systematic search for pertinent

information on a specific topic. The Advanced Learners Dictionary of current English gives the

meaning of research as a careful investigation or inquiry specially through search for new facts

in any branch of knowledge.

RESEARCH DESIGN


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The study adopts descriptive research method. The major purpose of descriptive

research is description of the state of affairs as it exists at present. The methods of research

utilized in descriptive research are survey methods. The facts and information collected are

analysed to make a critical evaluation of the material.

Research design stands for advanced planning of methods to be adopted for

collecting the relevant data and the techniques to be used in their analysis keeping in view the

objective of the research. The present study is based on survey and fact-findings enquiries with

the customers. Here the descriptive method of research has been followed

.

SAMPLING UNIT

The sampling unit for present study is dealer in Coimatore City.

SAMPLING TECHNIQUE

We have used simple Random sampling technique and population sampling to

collect the required information from the respondents.

POPULATION

The population consists of all the dealers in 100 dealers of MACO industry

DATA COLLECTION METHOD

Primary Data are that, which are collected afresh and for the first time and happens

to be original in character. Here the primary data was collected using a structured questionnaire

from various dealers of MACCO Industry. Dealers were contacted personally.

Secondary data was collected for company related information from the internal

source of the company and website.


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DATA ANALYSIS AND INTERPRETATION

The collected data was then edited and consolidated by using simple statistical foolsand was presented in the form of tables and figures. For the analysis of data, the simplest

statistical tools are employed. The statistical tools employed are

1. Percentage analysis

2. Weighted average method

3. Chi-Square Test

Percentage Analysis

The data collected through the survey process was tabulated. A percentage analysis

was done, which helps to develop frequency distribution for the different factors considered in

the study. The percentage analysis gives the number of people who have rated the factor in acertain way.

Number of Respondents

Percentage of Respondents = --------------------------------- X 100

Total Respondents

The analysis gives the extent to which a particular factor has been achieved (or)

rated by each employee.

Weighted average method


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The method involves selecting different weights for each data value and then

computing a weighted average of the recent and data values are forecasted.

Weighted average =fw / w

Chi-Square Test

This was used to find out the significance of relation between the factors that are

compared.

The quantity 2 describes the magnitude of discrepancy between theory and

observation and we are in a position to know whether a given discrepancy between theory and

observation may be attributed to chance or whether it results from inadequacy of the theory to fit

the observed facts. If2 is zero it means observed and expected frequencies coincide

completely.

2 =

( ) 2

E

EO

Degrees of freedom = (r-1) (c-1) r = row

c = column

Where O = Observed frequency

E = Expected frequency

The calculated value of 2 is compared with the value, of 2 for given degrees of

freedom at a certain specific level of significance (generally 5% level).


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If calculated value is greater than the table value the difference is considered to be

significant and null hypothesis is rejected.

If calculated value is less than the table value the difference is not considered as

significant and null hypothesis is accepted

2.4 REVIEW OF LITERATURE

Ian Wilkinson has made a study on "Power, Conflict, and Satisfaction in Distribution

Channels - an Empirical Study". Drawing from the literature on channels of distribution, four

hypotheses concerning the relationships between power, satisfaction and conflict are developed.

These hypotheses are tested using data from the channel of distribution for bulk beer. Finally, the

causal model underlying the hypotheses is tested using causal path analysis and an alternative

causal model is presented which provides a better fit with the data and which also helps to

explain some troublesome findings from previous research.

Citation: International Journal of Physical Distribution & Logistics Management, 1981, Vol. 11

Jule B. Gassenheimer, Roger J. Calantone, Joseph I. Scully has made a study on

"Supplier involvement and dealer satisfaction: implications for enhancing channel relationships".

Suppliers use a variety of strategies to gain a preferred position within their dealers' supply

network. Dealers allocate purchases among several suppliers in order to maximize benefits from

their suppliers' competitive maneuvers and to avoid being dominated. Uses an extension of


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transaction cost analysis and contract law to provide empirical insight into supplier-dealer

relationships within dealers' supply networks. Also suggests simple but powerful mechanisms for

suppliers to enhance relationship strength.

Citation: Journal of Business & Industrial Marketing, 1995, Vol. 10

Patrik Jonsson, Mosad Zineldin had made a study on "Achieving high satisfaction in

supplier-dealer working relationships". Increased attention has been paid to the question of how

to build stable and long-term working relationships between suppliers and dealers. This study

proposes a conceptual model including behavioral dimensions of supplier-dealer relationships

and presents hypotheses about how to achieve satisfactory inter-organizational relationships.

Satisfaction is the consequence of working relationships focused upon in our model. The model

is an empirical assessment of the relationship between Swedish lumber dealers and their

suppliers. T-test evidence suggests that all proposed critical variables, with the exception of

coercive power, are of significant importance for achieving a high rate of perceived relationship

satisfaction, regardless of whether the relationship is characterized by a high or a low level of

trust and commitment. A good reputation, close relationship and positive relationship benefits

are key variables for the achievement of high satisfaction in a high-trust and commitment

relationship. Results also indicate that it is possible to achieve a high satisfaction level even

when the supplier-dealer trust and commitment are lacking.

Citation: Supply Chain Management: An International Journal, 2003, Vol. 8

Angela Hausman had made a study on "Variations in relationship strength and its impact

on performance and satisfaction in business relationships". Develops a summary construct,


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relationship strength, composed of interfirm trust, relationship commitment, and relationalism

and supports the role of relationship strength in achieving positive relational outcomes, like

relationship satisfaction and performance. The survey sample comes from a national population

of hospital material managers who make decisions regarding purchases from a small group of

large medical/surgical supply firms. Structural models support improved fit provided by

relationship strength over a model containing the individual constructs comprising relationship

strength. Managerial and academic implications of relationship strength include improved

strategic planning and actionable information on improving relational outcomes.

Citation: Journal of Business & Industrial Marketing, 2001 Vol. 16

Robert F. Lusch, had made a study on "Franchisee Satisfaction: Causes and

Consequences". A trend has been developing in the United States towards the use of vertical

marketing systems. Of the many types of vertical marketing systems, franchising has become

one of the most dominant. This is evidenced, in part, by the nearly one-third of retail sales in

1973 that were through franchised retailers (US Department of Commerce, 1974). The success of

the franchise form of distribution hinges upon franchisors and franchisees both contributing

skills and resources, frequently however franchisees and franchisors become dissatisfied with the

other's contributions and actions. This dissatisfaction in some cases leads to substantial friction.

Although it is not clear that conflict (friction) will always decrease channel efficiency it is

probably safe to assume that continued conflict would be dysfunctional in a franchise channel. It

is therefore the purpose of this article to discuss and empirically test several propositions about

the franchisee's satisfaction with his franchisor.

Citation: International Journal of Physical Distribution & Logistics Management, 1976,

Vol. 7

Mosad Zineldin, Patrik Jonsson had made a study on "An examination of the mainfactors affecting trust/commitment in supplier-dealer relationships: an empirical study of the

Swedish wood industry". This research examines the importance of a set of underlying variables,

such as willingness of the supplier to adapt to the dealer, built-up relationship bonds, costs of

terminating the relationship, level of shared values, formal and informal communication between

the participating parties, opportunistic behavior by the supplier and perceived level of


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satisfaction in the relation-ship, for achieving high trust and commitment within a supplier-dealer

relationship. Data for the analysis are generated from 114 purchasing managers at Swedish

lumber dealers, an industry where collaborative relation-ships are not very developed, but

considered necessary for future success. Methodology is described and results are discussed.

Concludes that companies trying to achieve high trust and commitment relationships, should

create high satisfaction relationships, by decreasing their opportunistic behavior, adjusting to the

needs of the other part, and developing shared values.

Citation: An empirical study of the Swedish wood industry", The TQM Magazine, 2000,

Vol. 12

W. Clay Hamner and Donald L. Harnett had made a study Goal setting, performance

and satisfaction in an interdependent task. This study was designed to determine the effect that

goals have on performance and the effect that performance has on reported levels of satisfaction

in a competitively structured task. The results of this study give strong evidence to Locke's

theory (Organizational Behavior and Human Performance 1969, 4, 566574) that the most

immediate, direct motivational determinant of task performance is the subject's goal, and to Ilgen

and Hamstra's theory (Organizational Behavior and Human Performance 1972, 7, 359370) that

satisfaction with one's performance is a function of the difference between actual performance

and performance goals, and also a function of the difference between actual performance and

performance of a reference person. Satisfaction and performance were found to be strongly

related only up to the point where a person exceeds his goal or his reference person's outcome.

Citation: Organizational Behavior and Human Performance, 1974, Volume 12

Chi-Shiun Lai had made a study on the effects of influence strategies on dealer

satisfaction and performance in Taiwan's motor industry. The studies of influence strategies in

channel relationships have focused on western, individualistic countries. This study seeks toextend the empirical findings in Taiwan's motor industry to elucidate differences among diverse

context. The results reveal that the promise strategy must be separated from coercive strategies

and the request strategy must be separated from no coercive strategies under the context of

Taiwan's motor industry. Moreover, discrimination between economic and social satisfaction

helps relationships between influence strategies and satisfaction and the effects of satisfaction on


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performance to be understood. The dealer's satisfaction is positively related to his performance,

and social satisfaction is more important than economic satisfaction.

Citation: Industrial Marketing Management, 2007, Volume 36.

CHAPTER 3

ANALYSIS AND INTERPRETATION

TABLE-1

Experiences in Dealership

S.No. Criteria No. of respondents % of respondents

1 Less than 1 year 11 11

2 2-5 year 28 28

3 6-10 Year 46 46

4 More than 10 year 15 15

Total 100 100

INFERENCE


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From the table 100 dealers 15% of are having above ten years experience and 46% are in

the business of about 6-10 years. The other 28% have 2-5 years of experience and the rest 11%

of the dealers have less than 1 year experience.

Since the charts above shows the dealers have considerable experience their answers are valuedmuch and their statements are very much helpful for the analysis to come effective.

CHART-1


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TABLE-2

COMMISSION PER MONTH EARNED BY THE DEALERS


1 Less than Rs.3000 40 40

2 Rs.3000 to Rs.6000 27 27

3 Rs.6000 to Rs.10000 22 22

4 More than Rs.10000 11 11

Total

100

100

INFERENCE

From the above table it is inferred that 40% of the respondents are between Less than

Rs.3000 category, 27% of the respondents are Rs.3000 Rs.6000, 21% of the respondents areRs.6000 - Rs10000, and 11% of the respondents are more than Rs10000. The respondents who

received below Rs.6000 as their commission are considered to be non performing dealers. So

67(40+27) are the non performing dealers and 33(22+11)


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2 No 16 16

Total 100 100

INFERENCE

From the above table it is inferred that 68% of the respondents said dealing with other

product and 32% of the respondents said dealing with compressor.

CHART-3

TABLE-4

OTHER PRODUCTS SOLD BY THE DEALERS


1 Construction Equipment

89 89

2 Pump 78 78

3 Pipe 72 72

4 Electric Equipment 75 75


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5

Others 67 67

INFERENCE

From the above table it is clear that 89% of the respondents sell Construction

Equipments, 78% sell Pump items, 72% sell Pipe items, 75% sell Electric Equipment items and

67% of the respondents sell other items. The percentages add to more than 100% because the

dealers sell more than one product.

CHART-4

TABLE-5

OPINION ABOUT COMMISSION GIVEN BY THE COMPETITORS


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1 Yes 57 57

2 No 43 43

Total 100 100

INFERENCE

From the above table it is inferred that 43% of the respondents said none of them are

not giving better commission than this company and 57% of the respondents said other

companies providing better commission than this company.

CHART-5

TABLE-6

COMPETITORS PERFORMANCE

S.No. Criteria RANK1 RANK2 RANK3 RANK4 Total

1 Suguna 52 32 16 0 100


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2 CRI 37 43 20 0 100

3 Sree Ram 9 18 34 39 100

4 Sri Kannapiran 2 7 30 61 100

Inference

80% of the respondents feel that suguna consistently performed as -rank 1

70% of the respondents feel that CRI consistently performed as -rank 2

17% of the respondents feel that Sree Ram consistently performed as rank 3

9% of the respondents feel that Sri Kannapiran consistently performed as -rank 4

CHART-6


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TABLE-7

PRICE OF MECCO COMPRESSOR


1 Very High 11 11

2 High 15 15

3 Average 59 59

4 Low 15 15

Total 100 100

This table shows the idea of the dealers and customers about the price of the Mecco compressor.

On any time, the price of a companys product is always discussed; even it is maintained at the

low cost. But when asked with a lot of customers the real fact can be got.


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Among the 100 dealers, 11% of them reported that the product is higher at cost,

15 % of them are reporting it is higher but not the highest.

The 59% of the dealers are satisfied with the price, because of the products

quality and 15% dealer reported that the price is lower and no problem to deal with that.

CHART-7

TABLE-8

DEALERS EXPECTATION ON PROMOTIONAL ACTIVITY


1 Discount 41 41


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2 Gift 16 16

3

Prize 11 11

4

Offers 21 21

5

Others 7 7

Total 100

100

INFERENCE

Some dealers have the suggestions, and the suggestions about the promotional activities were,

shown in the table. It becomes essential for the manufacturing organization to satisfy its dealers

by the way to sustain and compete.

Most of the dealers prefer for the discount to offer them. Mecco already offering

discounts and they are satisfied with it. Hence the 41 % of the dealers find no problem with the

promotional activity and they are got what they expect.

21% of the dealers expect offers when they purchase in bulk. 16% expect for the

gift items .11% expect prizes to be offered and 7% expect for the other promotional activity.

They need the bulk purchaser should be praised. But this activity doesnt have a high impact

because all the dealers are expecting the discount as the main and besides that they have those

other ideas.


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CHART-8

TABLE-9

THE EXPECTION OF CUSTOMER


1 Performance 47 47

2 Value for money 70 70

3 Quality 78 78

4 Durability 57 57

Total 100 100


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INFERENCE

From the analysis we understand the customer expectation for using Mecco compressor. It is

found from the above table that 78% of the respondents gave the quality, 70% of them stated that

it was a value for money, 57% of the dealers gave the durability, 47% stated the performance.

CHART-9


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TABLE-10

THE EXPECTATION OF THE DEALERS


1

Promotional

Scheme

13 13

2 Sales follow-up 9 9

3 Service 45 45

4 Credit Facility 27 27

5 Others 6 6

Total 100 100

INFERENCE

About the main factors expect the dealers to be the Mecco dealers, most of the dealers prefer on

service to be first factor.

About 45% of the dealers are dealing roots products for its service. 27% are credit

facility.13% are promotional schemes.9% are sales follow-up. The rest 9 % of the dealers are

expect for others. Though the dealers prefer other than quality, they have service as a main

factor.


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CHART-10

CUSTOMER PREFERANCE

TABLE-11.1

BRAND NAME


1 RANK1 14 14

2 RANK2 65 65

3 RANK3 21 21

Total 100 100

INFERENCE

It could be observed from the above table that, customer preference of the brand name as 13%

as rank 1, 71% as rank 2,16% as rank 3.

CHART-11.1


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TABLE-11.2

QUALITY


1 RANK1 67 67

2 RANK2 21 21

3 RANK3 12 12

Total 100 100

INFERENCE

It could be observed from the above table that, customer preference of the quality as 20%


CHART-11.2

TABLE-11.3

PRICE



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1 RANK1 19 19

2 RANK2 16 16

3 RANK3 65 65

Total 100 100

INFERENCE

It could be observed from the above table that, customer preference of the price as 7%


CHART-11.3

TBLE 12

THE EXPECTED QUANTITY OF COMPRESSOR SUPPLY


1 Yes 64 64

2 No 36 36

Total 100 100


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INFERENCE

From the above table it is inferred that 64% of the respondents said they expected

quantity of compressor is supplied in time and 36% of the respondents said they expectedquantity of compressor is not supplied in time.

CHART -12

TABLE 13

RECOMMENDING TO CUSTOMERS


1 Yes 30 30

2 No 70 70

Total 100 100

INFERENCE

Most of the dealers do not recommend their customers about the Mecco compressor.

They say that they wont usually recommend to anyone.

CHART - 13


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TABLE 14

SATISFACTION LEVEL OF COMMISSION RATE

S.No. Criteria Respondents

(f )

Weights (w)

Fw

1 Highly satisfied 13 5 65

2 Satisfied 22 4 88

3

Neither Satisfied nor

Dissatisfied35 3 105

4 Dissatisfied 16 2 32

5 Highly dissatisfied 14 1 14


=304 / 100

= 3.04

Weighted percentage = (3.04 / 5) 100

= 60.8%

Interpretation:


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The obtained weighted average value is 3.04. It shows that dealers are satisfied

with the

Commission rate. The percentage of satisfaction level of commission rate is 60.8%

TABLE 15

SATISFACTION LEVEL OF EMPLOYEES DEALING

S.No. Criteria Rrespondents (f) Weights (w)

Fw


2 Satisfied 38 4 152

3


Dissatisfied28 3 84





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=308 / 100

= 3.08


= 61.6%

Interpretation:


with the

Employees dealing. The percentage of satisfaction level of employees dealing is

61.6%

TABLE 16

SATISFACTION LEVELF INCENTIVES


Fw



3


Dissatisfied21 3 63


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=329 / 100

= 3.29


= 65.8%

Interpretation:


with the

incentives. The percentage of satisfaction level of incentives is 65.8%

TABLE 17

SATISFACTION LEVEL OF AFTER SALES SERVICE


Fw


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3

Neither Satisfied norDissatisfied

26 3 78




=330 / 100

= 3.30


= 66%

Interpretation:


with the

After sales service. The percentage of satisfaction level of after sales service is 66%

TO FIND OUT THE ASSOCIATION BETWEEN DIFFERENT

EXPERIENCE AND COMMISSION EARNING PER MONTH


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Null Hypothesis: Ho

There is no significant difference between dealer of different experience and commission

earning per month

Alternative hypothesis: H1

There is significant difference between dealer of different experience and commission

earning per month

TABLE -18

CONTINGENCY TABLE SHOWING THE OBSERVED FREQUENCIES OF THE

COMMISSION EARNING PER MONTH

Opinion Year of experience

Less than

1year

2-5years 6-10 years More than

10years

Total

Less than

Rs.4000

5 11 18 6 40

Rs.4000 to

Rs.7500

3 6 14 4 27

Rs.7500 to

Rs.10000

3 7 9 3 22

More than

Rs.10000

- 4 5 2 11

Total 11 28 46 15 100


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O E O-E (O-E) (O-E) /E

5 4.4 0.6 0.36 0.081818

11 11.2 -0.2 0.04 0.003571

18 18.4 -0.4 0.16 0.008696

6 6 0 0 0

3 2.97 0.03 0.0009 0.000303

6 7.56 -1.56 2.4336 0.321905

14 12.42 1.58 2.4964 0.200998

4 4.05 -0.05 0.0025 0.000617

3 2.42 0.58 0.3364 0.139008

7 6.16 0.84 0.7056 0.114545

9 10.12 -1.12 1.2544 0.123953

3 3.3 -0.3 0.09 0.027273

0 1.21 -1.21 1.4641 1.21

4 3.08 0.92 0.8464 0.274805

5 5.06 -0.06 0.0036 0.000711

2 1.65 0.35 0.1225 0.074242

Calculated value of 2

2.582447

2 = (O-E) /E

Calculated value of 2 =2.582447


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Degree of freedom = (r-1) (c-1)

Where r = Number of rows

c = Number of columns

= (4-1) (4-1)

= (3) (3) = 9

At 5% significance level () and degree of freedom 9 the table value is 16.9

Result

Since the calculated value is lesser than the table value. Null hypothesis is accepted.

Inference

There is no significant difference between dealer of different experience and commission

earning per month.


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EXPERIENCE AND SALE OF THE MECCO COMPRESSOR

Null Hypothesis: Ho

There is no significant difference between dealer of different experience and sale of the

mecco compressor


There is significant difference between dealer of different experience and sale of the

mecco compressor

TABLE - 19


MECCO COMPRESSOR SALES


Less than

1year


10years

Total

0 3 0 0 0 3

1-8 6 13 16 2 37

9-15 2 9 12 4 27

15-20 0 4 8 5 17

More than 20 0 2 10 4 16

Total 11 28 46 15 100


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3 0.33 2.67 7.1289 21.60273

0 0.84 -0.84 0.7056 0.84

0 1.38 -1.38 1.9044 1.38

0 0.45 -0.45 0.2025 0.45

6 4.07 1.93 3.7249 0.915209

13 10.36 2.64 6.9696 0.672741

16 17.02 -1.02 1.0404 0.061128

2 5.55 -3.55 12.6025 2.270721

2 2.97 -0.97 0.9409 0.316801

9 7.56 1.44 2.0736 0.274286

12 12.42 -0.42 0.1764 0.014203

4 4.05 -0.05 0.0025 0.000617

0 1.87 -1.87 3.4969 1.87

4 4.76 -0.76 0.5776 0.121345

8 7.82 0.18 0.0324 0.004143

5 2.55 2.45 6.0025 2.353922

0 1.76 -1.76 3.0976 1.76

2 4.48 -2.48 6.1504 1.372857

10 7.36 2.64 6.9696 0.946957

4 2.4 1.6 2.56 1.066667

Calculated value of 2 38.29432 2 =(O-E) /E

Calculated value of2 =38.29432



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= (5-1) (4-1)

= (4) (3) = 12


Result

Since the calculated value is greater than the table value. Null hypothesis is rejected.

Inference

There is significant difference between dealer of different experience and sale of the

mecco compressor.

TO FIND OUT THE ASSOCIATION BETWEEN DIFFERENT DEALERS

EXPERIENCE AND SATISFACTION ON THE INCENTIVES:

Hypothesis:

Null Hypothesis: Ho


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There is no significant difference between dealer of different experience and incentives


There is significant difference between dealer of different experience and incentives

TABLE - 20


INCENTIVES


Less than

1year


10years

Total

Highly satisfied 2 3 2 4 11

Satisfied 5 19 14 2 40

Neither

Satisfied nor

Dissatisfied

2 4 11 4 21

Dissatisfied 2 2 16 3 23

Highly

dissatisfied

0 0 3 2 5

Total 11 28 46 15 100


2 1.21 1.79 3.2041 2.648017

3 3.08 -3.08 9.4864 3.08

2 5.06 -5.06 25.6036 5.06

4 1.65 -1.65 2.7225 1.65

5 4.4 1.6 2.56 0.581818

19 11.2 1.8 3.24 0.289286

14 18.4 -2.4 5.76 0.313043


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2 6 -4 16 2.666667

2 2.31 -0.31 0.0961 0.041602

4 5.88 3.12 9.7344 1.65551

11 9.66 2.34 5.4756 0.566832

4 3.15 0.85 0.7225 0.229365

2 2.53 -2.53 6.4009 2.53

2 6.44 -2.44 5.9536 0.924472

16 10.58 -2.58 6.6564 0.629149

3 3.45 1.55 2.4025 0.696377

0 0.55 -0.55 0.3025 0.55

0 1.4 0.6 0.36 0.257143

3 2.3 7.7 59.29 25.77826

2 0.75 3.25 10.5625 14.08333

Calculated value of 2 64.23088

2= (O-E) /E

Calculated value of2 =64.23088




= (5-1) (4-1)

= (4) (3) = 12


Result


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Inference

There is significant difference between dealer of different experience and incentives.


EXPERIENCE AND PROMOTIONAL ACTIVITIES

Null Hypothesis: Ho

There is no significant difference between dealer of different experience and promotional

activities


There is significant difference between dealer of different experience and promotional

activities

TABLE - 21


PROMOTIONAL ACTIVITIES



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Less than

1year


10years

Total

Yes 7 9 12 11 39

No 4 19 3 4 61

Total 11 28 46 15 100


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7 4.29 2.71 7.3441 1.711911

9 10.92 -1.92 3.6864 0.337582

12 17.94 -5.94 35.2836 1.966756

11 5.85 5.15 26.5225 4.533761

4 6.71 -2.71 7.3441 1.094501

19 17.08 1.92 3.6864 0.215831

34 28.06 5.94 35.2836 1.257434

4 9.15 -5.15 26.5225 2.898634

Calculated value of 2 14.01641

2= (O-E) /E

Calculated value of 2 =14.01641




= (2-1) (4-1) = 3


Result


Inference

There is significant difference between dealer of different experience and promotional

activities.

CHAPTER -4


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FINDINGS RECOMMENDATIONS AND CONCLUSION

4.1 FINDINGS

About 46% of respondents are having more than 6 years of experience.

About 40% of respondents are having less than Rs.3000 commission earning per month.

About 37% of dealers said that the more than 9 Mecco compressors sold in per month.

Among the 100 dealers who were studied, 67 (67%) were identified as non-performing

dealers as they received a commission less than Rs.6000.

When the reason for their non-performance was studied, the following findings were

revealed. Out of the 67who were non-performing 43% were not satisfied with the

commission rate given by the company and 27% were not satisfied with incentives.

About 84% of dealers dealing with other product.

According to this study about 65% of dealers said that price of Mecco compressor is

average.

About 67% of dealers said that the quality of Mecco compressor is good.

About 45% of dealers expect the service.

About 40% of dealers said that the promotional activities are motivated.

This study has finding that there no significant difference between dealer of different

experience and commission earning per month.

This study has finding that there is significant difference between dealer of different

experience and sale of the Mecco compressor.


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experience and incentives.


experience and promotional activities.

Majority of dealers are deal with other company products. The main reason is to satisfy

their various kind of customers.

About 61.6% of dealers have said that they are satisfied with the Mecco employees

dealing.

Majority of dealers are recommend about Mecco compressor to their customers.

About 66% of dealers are satisfied with the service given by Mecco employees after

sales.

4.2 RECOMMENDATIONS


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The main objective of every analysis is to find the faults and road blocks of a business.

Some of the suggestions, the dealers told and some from the findings of the analysis are listed

below.

The industry can have a discussion with the dealers and study what changes they except

in the commission structure.

The industry can discuss with the 42.5% of the respondents who said they are dissatisfied

with the commission rate and those feel Suguna &CRI to be better

More moderation should be done to encourage dealers to perform better by providing the

incentives, commission in time.

Most of the dealers are partially satisfied with the pricing when compared to competitors.

So Mecco should have to rework on pricing policies.

Most of the dealers are in need of better promotional activities and margin.

They are well satisfied with the quality of the compressor.

According to dealers, advertisement is the most effective method to promote sales. So

Mecco should have to focus more on advertisement.

The company should have an eye on the incentive given to each dealer, because some are

well satisfied and some doesnt agree with it.The dealers should not be affected even

indirectly.

Since quality is being the main factor for the dealers to have relationship with the

company, the company should not lose its quality standard at any cost.

It is advisable for the company to have various promotional activities, the dealer to


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choose. It is because; all the dealers need not to like the same kind of promotional

activities.

Since some of the dealers have suggestions and some have complaints about the company

or its compressor. It will be better to have a feedback from the dealers at regular intervals,

and to minimize the communication gap between the dealers and company people.

Most of the dealers are well satisfied with the after-sales service given by the company.

The company should increase the profit margin to dealers and provide proper credit

facility.

The company should have to improve after sales service.

The company should have to conduct exhibition of products to improve awareness.

4.3 CONCLUSION

The study can be concluded by saying that commission structure and sales promotion

are the main areas where the industry has to focus upon to moderate dealers, performance. Other

than this a better relationship with the dealers would definitely contribute to improving the sales

efficiency of the dealers.


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From the survival point of view, Mecco should enter into all aspects of marketing

activities to improve the product life in the future market. The company has moderately achieved

in satisfying its dealers and as well as its customers. It is evident from this study and Mecco isadvised to improve its Quality and pricing strategy on its products so as to retain this stage

forever. The study has been successful in knowing the Dealers performance and satisfaction with

special reference to Mecco industry, Coimbatore.

Final Riyas

Documents

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