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Nitesh Kumar Singh

B.Com (Honours) IInd Year


2017-18
REGIONAL COLLEGE
OF PROFESSIONAL STUDIES & RESEARCH
Affiliated to M.J.P Rohilkhand University, Bareilly
Pilibhit Bypass, Bareilly (UP)

PROJECT ON

“GATI LIMITED”

Session:2017-18

Submitted By:
Nitesh Kumar Singh
B.Com (Honours) IInd Year
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
REGIONAL COLLEGE
OF PROFESSIONAL STUDIES & RESEARCH
Affiliated to M.J.P Rohilkhand University, Bareilly
Pilibhit Bypass, Bareilly (UP

CERTIFICATE

THIS IS TO CERTIFY THAT THE PROJECT TITLED

“GATI LIMITED”

HAS BEEN PREPARED BY

Nitesh Kumar Singh

AS PER REQUIREMENT OF CURRICULUM OF B.COM. (HONOURS)- II Year.

THIS WORK IS AS PER GUIDELINES LAID OUT FOR THE SAME AND IS WORTHY OF APPROVAL.

Date : Signature of Panel of Teacher


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
REGIONAL COLLEGE
OF PROFESSIONAL STUDIES & RESEARCH
Affiliated to M.J.P Rohilkhand University, Bareilly
Pilibhit Bypass, Bareilly (UP

ACKNOWLEDGEMENT
I AM EXTREMELY THANKFUL TO ALL THOSE WHO HAVE HELPED ME IN
COMPLETION OF MY PROJECT

“GATI LIMITED”

MY PROJECT WOULD NOT HAVE COMPLETED WITHOUT THE ENCOURAGEMENT, GUIDANCE AND
MOTIVATION PROVIDED TO ME BY

Dr. Anjali Chaudhary &


Dr. Priya Verma
LASTLY, I WOULD THANK ALMIGHTY GOD FOR GIVING ME COURAGE, WILL AND INTELLIGENCE
TO COMPLETE THIS WORK.

Signature of Student
Nitesh Kumar Singh
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
CONTENT LIST

CHAPTERS PAGE NO.

 Certificate

 Acknowledgement

 Content list

 Main content

 List of tables and figure

 Abstract

 Research Methodology

 Limitations of projects

1. CHAPTER 1

Introduction of the company

2. CHAPTER 2

Organization structure

3. CHAPTER 3

Complete product range

4. CHAPTER 4

Plant locations

5. CHAPTER 5

Market share product wise


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
6. CHAPTER 6

Marketing strategies

7. CHAPTER 7

Competitors

8. CHAPTER 8

Data analysis

9. CHAPTER 9

Findings & Recommendations

10. CHAPTER 10

Conclusion

 BIBLIOGRAPHY
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
MAIN CONTENT LIST

CHAPTER PAGE NO.

1. CHAPTER 1: INTRODUCTION OF THE COMPANY

1.1 INTRODUCTION

1.2 THE STORY OF GATI

1.3 MILE STONES

2. CHAPTER 2: ORGANIZATION STRUCTURE

2.1 ORGANIZATION STRUCTURE

2.2 FUNCTIONAL AREAS

3. CHAPTER 3: COMPLETE PRODUCT RANGE

3.1 PRODUCT PROFILE

4. CHAPTER 4: PLANT LOCATIONS

4.1 PLANT LOCATION

5. CHAPTER 5: MARKET SHARE PRODUCT WISE

5.1 MARKET SHARE REPORT

6. CHAPTER 6: MARKETING STRATEGIES

6.1 MARKETING MIX

6.2 MARKETING EFFECTIVENESS

6.3 MARKET STRATEGY

7. CHAPTER 7: COMPETITORS

7.1 COMPETITORS PROFILE

8. CHAPTER 8: DATA ANALYSIS

8.1 DATA ANALYSIS AND INTERPRETATION


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
9. CHAPTER 9: FUTURE PLANS

9.1 FUTURE PLANS

9.2 BRITANNIA TO KICKSTART

10. CHAPTER 10: FINDINGS & SUGESSTIONS

11. CHAPTER 11: CONCLUSIONS

 BIBLIOGRAPHY
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
LIST OF TABLES
Table No. Page No.

1. Table no. 1

2. Table no. 2

3. Table no. 3

4. Table no. 4

5. Table no. 5

6. Table no. 6

7. Table no. 7
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
LIST OF FIGURES
Figure No. Page No.

1. Figure No. 1

2. Figure No. 2

3. Figure No. 3

4. Figure No. 4

5. Figure No. 5

6. Figure No. 6

7. Figure No. 7

8. Figure No. 8

9. Figure No. 9
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
EXECUTIVE SUMMARY
The birth of Gati practically represents the big change in Indian courier & cargo industry. The

name Gati creates an image, reliability, tradition & faith. Except its express cargo division it

started its courier division under the brand name “Gati Zipp” in the year of 1998. Now Gati Ltd.

is a leader in Indian cargo service industry. The word “Gati” is derived from Sanskrit language

which means speed with direction.

Though Gati has proven its supremacy in Indian cargo sector, it is facing a low brand awareness

in Indian courier market. Since the company is wanted to relaunch its courier service in tie up

with Indian cargo a detail story of brand awareness and brand recall is very much needed.

Keeping this thing in mind, we set out to find out the market potential and brand recall of Gati

products and services.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
RESEARCH METHODOLOGY
Research is a common language refers to a search of knowledge. Research is scientific &

systematic search for pertinent information on a specific topic, infect research is an art of

scientific investigation. Research Methodology is a scientific way to solve research problem. It

may be understood as a science of studying how research is don’t scientifically. In it we study

various steps that are generally adopted by researchers in studying their research problem. It is

necessary for researchers to know not only know research method techniques but also

technology.

The scope of Research Methodology is wider than that of research methods.

The research problem consists of series of closely related activities. At times, the first step

determines the native of the last step to be undertaken. Why a research has been defined, what

data has been collected and what a particular methods have been adopted and a host of similar

other questions are usually answered when we talk of research methodology concerning a

research problem or study. The project is a study where focus is on the following points:

RESEARCH DESIGN

A research design is defined, as the specification of methods and procedures for

acquiring the Information needed. It is a plant or organizing framework for doing the study and

collecting the data. Designing a research plan requires decisions all the data sources, research

approaches, Research instruments, sampling plan and contact methods.

Research design is mainly of following types: -

1. Exploratory research.

2. Descriptive studies
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
3. Casual studies

EXPLORATORY RESEARCH

The major purposes of exploratory studies are the identification of problems, the

more precise Formulation of problems and the formulations of new alternative courses of action.

The design of exploratory studies is characterized by a great amount of flexibility and ad-hoc

veracity.

DESCRIPTIVE STUDIES

Descriptive research in contrast to exploratory research is marked by the prior

formulation of specific research Questions. The investigator already knows a substantial

amount about the research problem. Perhaps as a Result of an exploratory study, before the

project is initiated. Descriptive research is also characterized by a Preplanned and structured

design.

CASUAL OR EXPERIMENTAL DESIGN

A casual design investigates the cause and effect relationships between two or more

variables. The hypothesis is tested and the experiment is done. There are following types of

casual designs:

I. After only design

II. Before after design

III. Before after with control group design

IV. Four groups, six studies design

V. After only with control group design.

VI. Consumer panel design

VII. Exposit facto design


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
Area of study: The study is exclusively done in the area of marketing. It is a process requiring

care, sophistication, experience, business judgment, and imagination for which there can be no

mechanical substitutes.

Sampling Design: The random sampling is done because any probability sampling procedure

would require detailed information about the universe, which is not easily available further, it

being an exploratory research.

Sample Procedure: In this study “random sampling procedure is used. Random sampling is

preferred because of some limitation and the complexity. Area sampling is used in combination

with random sampling so as to collect the data from different regions of the city and to increase

reliability.

Sampling Size: The sampling size of the study is 100 Respondents.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
LIMITATIONS OF THE STUDY
Limitations are influences that the researcher cannot control. They are the shortcomings,

conditions or influences that cannot be controlled by the researcher that place restrictions on your

methodology and conclusions of this project report are as follow:

1. It was an academic effort and limited to cost, time and geographical area.

2. Numbers of respondents were restricted due to the time factor.

3. Scattering from respondents and dealers.

4. There is a lack of time.

5. Research is limited to Bareilly city.

6. Respondents are from different back ground.

7. Respondents are from different age group.

8. Respondents have different income level.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

CHAPTER 1

INTRODUCTION OF THE

COMPANY
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
1.1 INTRODUCTION

Exactly the same has made all the difference when Gati rolled out the express cargo concept in

India. Gati, the pioneer in India in mastering the idea of express cargo with a different feature of

door to door and desk to desk pick up and delivery which was conceptualized as a premium

transportation service with convenience and efficiency. It has made all the difference where the

conventional transportation was the only way of delivering most of all corporate houses’ promise

to their customer.

In late 80’s India witnessed the liberalization policy that has changed the face and pace of India

which triggered high economic growth in manufacturing and service sector. The competition

among corporate to serve its customers first and fast become the key word of success in market

place. Gati very proactively foreseen the vast changes that are going to trigger Indian economic

growth.

The realization of, importance of logistics in creating a country’s wealth, Gati has taken a

different route and that was resulted to the launch of Gati Desk to Desk Cargo in 1989 offering

door to door pick up and delivery services.

1989 witnessed the introduction of a different product line in transportation where time,

technology, safety and customer service play the vital role.

In 90’s, Consumer preference started changing as the information technology has taken front

seat in providing highly efficient service at customer doorsteps. Time and speed became the

essential ingredient of success of any manufacturer who wants to deliver their products to end

user on time and intact. Snail paced infrastructure development in India was the only road block

to attain high speed in delivering our customer needs.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

In 1996, Gati has made history by getting into a strategic alliance with Indian Airlines to

leverage the highest network on air to provide the widest reach in surface with high speed

delivery process to attain great customer satisfaction.

The industry growth and information tech boom has created high customer expectation; the

intangible service started playing the key role in differentiating the tangibility of every product.

It is like the service starts matters the cost.

In 2000, a new millennium, Gati launched the first railway freight service from Mumbai to Delhi

called “ Gati Millennium Train “ eying the optimum utilization of cost and grabbing all

opportunities come across as the market dynamic changes.

The new millennium witnessed the explosion of information technology and expansion of Indian

service industry. India started acting global. The investment friendly business environment that

has made international corporate’s entry into Indian market. It triggered stiff competition in

market place and higher consumer expectations. All the company’s started to think on “optimum

utilization “of all resources to meet customer expectation as well as the thinner bottom line to a

thicker one. The conventional wisdom of “Revenue generation by sales and spent by distribution

“has made a major shift to “effective distribution and SCM make company’s bottom line

brighter”. This made – the back room logistic and distribution function to a strategic board room

function. The black sheep becomes a profit pulling bull.

In 2003, Gati introduced oracle based Gati Enterprise Management Solution, nick named GEMS

to give all competitive edge to our customers in leveraging the market opportunities on time.
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
Gati GEMS is one of the most effective tool to track and trace the shipment and enabling Gati in

optimizing all resources.

India became the fastest growing economy in the world with an aspiration to fetch a double digit

growth in GDP. The pace that Indian logistic scenario moves ahead, Indian infrastructure like

road, rail, ports Air ports development is not showing the speed that requires to support the faster

development in logistics.

Gati has already started investing heavily in improving the ware housing, IT, Hubs, Aviation,

Customer service etc to move ahead to meet the market needs. Gati is going ahead in re-

engineering of network through central distribution centre and express distribution centre. Now

Gati offers distribution and warehousing solution in 592 out of 604 districts of India. Gati has

expanded to Asia Pacific region by offering India- centric distribution solutions.

Change is very constant in market place. Gati always choose a road less traveled by and create a

positive difference in market place.

Recently Gati has undergone a transformation process and displaced the promise to “Ahead in

Reach” from the statement of “We deliver anything anywhere”. Gati now have a global outlook

and its brand design has changed to

Vibrant new look. Gati has restructured to meet all B2B and B2C customer needs which enable

to address the various requirement of corporate and mass market differently.

Gati’s ambition is to become a truly Indian multinational company to set a bench mark reference

in customer sensitivity in express distribution and SCM company.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

1.2 MILE STONES


From inception, Gati have been obsessed with providing the best possible service. This obsession

has resulted in setting the benchmarks for the industry. Here are the some snap shots of the

glorious story of a leading logistic service provider of the country.

1989

Birth of cargo giant Gati as Gati cargo management services.

1989-1995

Gati offers a money back guarantee on cargo services.

Gati offers cash on delivery for convenience of customers.

A toll free number is introduced for customers for first time in India.

1996

A strategic alliance with Indian airlines, India’s largest air network for faster delivery of

shipments to its customers.

1997

Introducing the third party logistics system in India and offering the complete logistics solution

to its customers.

1998

Entering in to courier market under the brand name of Gati-Zipp.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

1999

Expanding its services in to SAARC countries, ties-up with Bhutan and Maldives Postal

department.

2001

Introducing the first exclusive cargo train between Mumbai and Kolkata in association with

Indian Railway.

2003

Bags the best logistic company 2003 in a survey conducted by Frost & Sullivan.

Setting up a base at Singapore in order to reach out world faster.

2004

Introducing mechanized racking system in the automated warehouse at panvel, Maharastra.

2006

Awarded the “Best Logistics Partner” by HCL infosystems.

Awarded the consumer super brand status in the logistic category for 2006-07

Nominated for NDTV “business leadership awards” 2006 in logistics category.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

CHAPTER 2

ORGANISATION

STRUCTURE
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
2.1 ORGANIZATION STRUCTURE

Board of Director

K L Chugh Independent Director – Chairman

Mahendra Agarwal Promoter, Founder & CEO

N Srinivasan Independent Director

P S Reddy Independent Director

Sunil Alagh Independent Director

P N Shukla Independent Director

Yasuhiro Kaneda Nominee Director

Sheela Bhide Independent Director


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

Key Managerial Personnel

Mahendra
Founder & CEO
Agarwal

Manoj Gupta Chief Financial Officer

Company Secretary, Compliance Officer and Chief Investor Relations


Amit Pathak
Officer

2.2 FUNCTIONAL AREAS

HR Practices:

Today companies are trying to reinvent HR practices. Likewise Goodyear tyre also is

continuously adopting new changes that can be in mutual benefit of their employees and

organization’s business. Goodyear tyre human resource team is reconfiguring their HR processes

and run innovative employee engagement programs to improve motivation among employees

and reduce costs.

Goodyear tyre HR practices includes-

 Talent Acquisition and Talent Management

 Resourcing from referrals, online portals, campus placements and walk ins.

 Payroll Administration

 Compensation Management

 Workforce Management
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

CHAPTER 3

COMPLETE PRODUCT

RANGE
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
3.1 PRODUCT PROFILE

Services offered by the Gati

 Gati Express

 Gati Zipp

 Gati Saver

 Gati Priority

 Gati coast-to-coast

 Gati Logistic solution

Value Added Services

 FOD – Option of paying at the time of delivery

 COD – Collection of cash against delivery from the customer and remitting it to the supplier

online through e-banking.

 DOD- collection of draft and cheque on behalf of customer at the time of delivery.

 Holiday and sun day pick up

 Tamper proof packing

 Fragile goods packaging

 Safety Measures: special “suraksha” bags for safe handling of high value of cargo.

 Octroi clearance facility


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

Gati Express

With the widest network, the best of cargo movement facilities and several value added services

to choose from, Gati express is the preferred distribution solution provider today in India. Gati

has a range of express services to choose from:

Express City : Same day delivery

Express Zone : Ideal for secondary distribution needs

Express State : For regional distribution

Express national: Reaches the remotest corner of the country

Express Bulk : For high density cargo and bulk cargo

Features of the Gati express:

 On time departure of vehicles irrespective of capacity utilization

 Assured date of delivery

 Door pick-up and door delivery

 Weather proof containerized vehicles for safe movement

 One time lock for tamper proof transit

 Online track and trace facility

 Physical proof of delivery option

 E-billing
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

Gati Saver

An affordable surface product especially designed for non commercial packages.

 Flat rate of Rs 89 per package ( up to 4kgs) ideal for samples, gifts, study materials and

printed material.

Gati Priority

Speed, reliability and reach: Every operation at Gati Priority follows this principle. The large

fleet of surface vehicles and a strategic alliance with Indian airlines helps Gati to meet every

possible business need.

Features of Gati Priority:

 Reserved space in 34 designated air movement sectors.

 24*7 Service counters at major air transit centers.

 Multi modal connectivity for easy and quick transit at non airport locations.

 Online track and trace facility

 Option of same day delivery

 Door pick up and door delivery

Gati Zipp

Zipp makes the difference:

Gati goes beyond the normal courier service with zipp and provides its customers with unique

price and transit time option.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

Features of Gati Zipp:

 Express courier service

 48-96 hours delivery for most locations in India

 Holiday and Sunday pick up and delivery option

 A pre paid payment option the form of zipp envelopes and boxes.

 Cash-on-delivery facility

Gati coast to coast

Gati coast to coast is Gati’s shipping division. Set up way back in 1986, the CTC division was to

become the preferred service provider for all sea bound cargo in the bay of Bengal, Andaman

Island and Malacca strait. In the two decades of its existence, Gati CTC has followed this vision

with diligence and determination and has emerged as a complete solution provider for Indian

seas.

Features of Gati Coast to Coast:

 Sturdy and safe cellular container vessels

 mv Gati Suvidha

 mv Gati Zipp

 mv Gati-1

 mv clarissa

Regular liner services between Chennai-Andaman Island-Chennai & Chennai-Yangon-Chennai.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

Gati Logistics solution

Logistic and supply chain management are the integral part of Gati’s business. A sharp and

steady focus on these key functions has helped Gati to gain a competitive edge over the rest of

the market. Gati offers its service as a third party logistics service provider. A 3pl service allows

a company to

 Concentrate on core competency

 Create greater competitive flexibility and release working capital.

Gati’s warehousing facilities consists of completely modern storage system and material

handling system. With it branches in all metros, semi metros, cities, Gati has more than 200

storage locations across the India. With over 6000 sq ft of warehousing space spread all over the

country and serving the multiple clients, Gati is able to offer many more customer friendly

solution:

 Flexible hiring option

 Modern racking and handling system

 Reduction in material breakage and damage

 Ware house manage system


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

CHAPTER 4

PLANT LOCATIONS
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
4.1 PLANT LOCATION

CORPORATE OFFICE

Gati Ltd.

Plot No.20, Survey No.12,

Kothaguda, Kondapur,

Hyderabad – 500084

Tel : 040-71204284, 27844284

Fax : 040-23112316

E-mail : customerservice@gati.com

HO AND REGISTERED OFFICE

Gati Ltd.

Plot No.20, Survey No.12,

Kothaguda, Kondapur,

Hyderabad – 500084

Tel : 040-71204284, 27844284

Fax : 040-23112316

E-mail : customerservice@gati.com
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
CUSTOMER CARE CENTER

For all Queries,

Complaints and Pickups

Call us on : 1860-123-4284

Email : customerservice@gatikwe.com

In case our number is inaccessible, please call us on

(0712) 6694284

Our Offices in India

EAST ZONAL OFFICE

Gati Ltd.

Shree Manjari Building

Premises No :- 8/1, Middleton Row.

Kolkata :- 700 071.

Tel : (033) 24017488

Fax : (033) 24017403

WEST ZONAL OFFICE

Gati Ltd.

Unit No. 501, 5th Floor

Ackruti Star, MIDC Central Road

MIDC, Andheri (East)

Mumbai – 400093
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
Tel : (022) 40324284

Fax : (022) 40324285

NORTH ZONAL OFFICE

Gati Ltd.

Khasra No.-14/19/2,

Opposite Heera Public School,

Old Delhi – Gurgaon Road,

Samalkha,

New Delhi -110037

Tel : (011) 66530700

Fax : (011) 66530716

SOUTH ZONAL OFFICE

Gati Ltd.

Peenya Industrial Area,

Phase – 1

Banglore 560 058

Tel : (080) 49034221

Fax : (080) 23725119


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

CHAPTER 5

MARKET SHARE
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
5.1 MARKET SHARE REPORT

Gati Ltd., incorporated in the year 1995, is a Small Cap company (having a market cap of Rs

1160.39 Crore) operating in Service sector.

Gati Ltd. key Products/Revenue Segments include Freight & Demurrage which contributed Rs

279.46 Crore to Sales Value (54.58 % of Total Sales), Diesel, Petrol & Lubricants which

contributed Rs 214.95 Crore to Sales Value (41.98 % of Total Sales) and Other Operating

Revenue which contributed Rs 17.55 Crore to Sales Value (3.42 % of Total Sales)for the year

ending 31-Mar-2017.

For the quarter ended 31-12-2017, the company has reported a Consolidated sales of Rs 448.51

Crore, up 10.48 % from last quarter Sales of Rs 405.97 Crore and up 6.89 % from last year same

quarter Sales of Rs 419.60 Crore Company has reported net profit after tax of Rs 4.80 Crore in

latest quarter.

The company’s top management includes Dr.P S Reddy, Mr.K L Chugh, Mr.Mahendra Agarwal,

Mr.N Srinivasan, Mr.P N Shukla, Mr.Sunil Alagh, Mr.Yasuhiro Kaneda, Ms.Sheela Bhide.

Company has Singhi & Co. as its auditoRs As on 31-12-2017, the company has a total of

108,346,795 shares outstanding.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

CHAPTER 6

MARKETING

STRATEGIES
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
6.1 MARKETING MIX

PRODUCT MARKETING

Product marketing deals with the first of the "4P"'s of marketing, which are Product, Pricing,

Place, and Promotion. Product marketing, as opposed to product management, deals with more

outbound marketing tasks. For example, product management deals with the nuts and bolts of

product development within a firm, whereas product marketing deals with marketing the product

to prospects, customers, and others. Product marketing, as a job function within a firm, also

differs from other marketing jobs such as Marcom or marketing communications, online

marketing, advertising, marketing strategy, etc.

A Product Market is something that is referred to when pitching a new product to the general

public. The people you are trying to make your product appeal to is your consumer market. For

example: If you were pitching a new video game console game to the public, your consumer

market would probably be a younger/teenage market (depending on the type of game). Thus you

would carry out market research to find out how best to release the game. Likewise, a massage

chair would probably not appeal to younger children, so you would market your product to an

older generation.

PRODUCT PRICING

Pricing is one of the four p's of the marketing mix. The other three aspects are product,

promotion, and place. It is also a key variable in microeconomic price allocation theory. Price is

the only revenue generating element amongst the 4ps,the rest being cost centers. Pricing is the

manual or automatic process of applying prices to purchase and sales orders, based on factors

such as: a fixed amount, quantity break, promotion or sales campaign, specific vendor quote,

price prevailing on entry, shipment or invoice date, combination of multiple orders or lines, and
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
many others. Automated systems require more setup and maintenance but may prevent pricing

errors.

The effective price is the price the company receives after accounting for discounts, promotions,

and other incentives.

Price lining is the use of a limited number of prices for all your product offerings. This is a

tradition started in the old five and dime stores in which everything cost either 5 or 10 cents. Its

underlying rationale is that these amounts are seen as suitable price points for a whole range of

products by prospective customers. It has the advantage of ease of administering, but the

disadvantage of inflexibility, particularly in times of inflation or unstable prices.

A loss leader is a product that has a price set below the operating margin. This results in a loss to

the enterprise on that particular item, but this is done in the hope that it will draw customers into

the store and that some of those customers will buy other, higher margin items.

Promotional pricing refers to an instance where pricing is the key element of the marketing

mix.

The price/quality relationship refers to the perception by most consumers that a relatively high

price is a sign of good quality. The belief in this relationship is most important with complex

products that are hard to test, and experiential products that cannot be tested until used (such as

most services). The greater the uncertainty surrounding a product, the more consumers depend

on the price/quality hypothesis and the more of a premium they are prepared to pay. The classic

example of this is the pricing of the snack cake Twinkies, which were perceived as low quality

when the price was lowered. Note, however, that excessive reliance on the price/quantity

relationship by consumers may lead to the raising of prices on all products and services, even

those of low quality, which in turn causes the price/quality relationship to no longer apply.
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
Premium pricing (also called prestige pricing) is the strategy of consistently pricing at, or near,

the high end of the possible price range to help attract status-conscious consumers. A few

examples of companies which partake in premium pricing in the marketplace include Rolex and

Bentley. People will buy a premium priced product because:

1. They believe the high price is an indication of good quality;

2. They believe it to be a sign of self worth - "They are worth it" - It authenticates their

success and status - It is a signal to others that they are a member of an exclusive group;

3. They require flawless performance in this application - The cost of product malfunction

is too high to buy anything but the best - example : heart pacemaker.

The term Goldilocks pricing is commonly used to describe the practice of providing a "gold-

plated" version of a product at a premium price in order to make the next-lower priced option

look more reasonably priced; for example, encouraging customers to see business-class airline

seats as good value for money by offering an even higher priced first-class option. Similarly,

third-class railway carriages in Victorian England are said to have been built without windows,

not so much to punish third-class customers (for which there was no economic incentive), as to

motivate those who could afford second-class seats to pay for them instead of taking the cheaper

option. This is also known as a potential result of price discrimination.

The name derives from the Goldilocks story, in which Goldilocks chose neither the hottest nor

the coldest porridge, but instead the one that was "just right". More technically, this form of

pricing exploits the general cognitive bias of aversion to extremes. This practice is known

academically as "framing". By providing three options (i.e. small, medium, and large; first,

business, and coach classes) you can manipulate the consumer into choosing the middle choice
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B.Com (Honours) IInd Year
2017-18
and thus, the middle choice should yield the most profit to the seller, since it is the most chosen

option.

Demand-based pricing is any pricing method that uses consumer demand - based on perceived

value - as the central element. These include : price skimming, price discrimination and yield

management, price points, psychological pricing, bundle pricing, penetration pricing, price

lining, value-based pricing, geo and premium pricing. Pricing factors are manufacturing

cost,market place,compitition,maket condition,Quality of product.

Multidimensional pricing is the pricing of a product or service using mutliple numbers. In this

practice, price no longer consists of a single monetary amount (e.g., sticker price of a car), but

rather consists of various dimensions (e.g., monthly payments, number of payments, and a

downpayment). Research has shown that this practice can significantly influence consumers'

ability to understand and process price information

PROMOTION

Promotion involves disseminating information about a product, product line, brand, or

company. It is one of the four key aspects of the marketing mix. (The other three elements are

product marketing, pricing, and distribution.)

Promotion is generally sub-divided into two parts:

 Above the line promotion: Promotion in the media (e.g. TV, radio, newspapers, Internet

and Mobile Phones) in which the advertiser pays an advertising agency to place the ad

 Below the line promotion: All other promotion. Much of this is intended to be subtle

enough that the consumer is unaware that promotion is taking place. E.g. sponsorship,

product placement, endorsements, sales promotion, merchandising, direct mail, personal

selling, public relations, trade shows


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B.Com (Honours) IInd Year
2017-18
The specification of these four variables creates a promotional mix or promotional plan. A

promotional mix specifies how much attention to pay to each of the four subcategories, and how

much money to budget for each. A promotional plan can have a wide range of objectives,

including: sales increases, new product acceptance, creation of brand equity, positioning,

competitive retaliations, or creation of a corporate image.

DISTRIBUTION

Distribution (or place) is one of the four elements of marketing mix. An organization or set of

organizations (go-betweens) involved in the process of making a product or service available for

use or consumption by a consumer or business user.

Channels

A number of alternate 'channels' of distribution may be available:

 Selling direct, such as via mail order, Internet and telephone sales

 Agent, who typically sells direct on behalf of the producer

 Distributor (also called wholesaler), who sells to retailers

 Retailer (also called dealer or reseller), who sells to end customers

 Advertisement typically used for consumption goods

Distribution channels may not be restricted to physical products alone. They may be just as

important for moving a service from producer to consumer in certain sectors, since both direct

and indirect channels may be used. Hotels, for example, may sell their services (typically rooms)

directly or through travel agents, tour operators, airlines, tourist boards, centralized reservation

systems, etc.

There have also been some innovations in the distribution of services. For example, there has

been an increase in franchising and in rental services - the latter offering anything from
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televisions through tools. There has also been some evidence of service integration, with services

linking together, particularly in the travel and tourism sectors. For example, links now exist

between airlines, hotels and car rental services. In addition, there has been a significant increase

in retail outlets for the service sector. Outlets such as estate agencies and building society offices

are crowding out traditional grocers from major shopping areas.

CHANNEL MOTIVATION

It is difficult enough to motivate direct employees to provide the necessary sales and service

support. Motivating the owners and employees of the independent organizations in a distribution

chain requires even greater effort. There are many devices for achieving such motivation.

Perhaps the most usual is `incentive': the supplier offers a better margin, to tempt the owners in

the channel to push the product rather than its competitors; or a competition is offered to the

distributors' sales personnel, so that they are tempted to push the product.

MONITORING AND MANAGING CHANNELS

In much the same way that the organization's own sales and distribution activities need to be

monitored and managed, so will those of the distribution chain.

In practice, many organizations use a mix of different channels; in particular, they may

complement a direct salesforce, calling on the larger accounts, with agents, covering the smaller

customers and prospects.

SERVICE

A service is the non-material equivalent of a good. A service provision is an economic activity

that does not result in ownership, and this is what differentiates it from providing physical goods.

It is claimed to be a process that creates benefits by facilitating either a change in customers, a

change in their physical possessions, or a change in their intangible assets.


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2017-18
By supplying some level of skill, ingenuity,and experience, providers of a service participate in

an economy without the restrictions of carrying stock (inventory) or the need to concern

themselves with bulky raw materials. On the other hand, their investment in expertise does

require marketing and upgrading in the face of competition which has equally few physical

restrictions.

Any service can be completely, consistently and cleary specified by means of the following 12

standard attributes

1. Service Consumer Benefit(s)

2. Service-specific Functional Parameter(s)

3. Service Delivery Point

4. Service Consumer Count

5. Service Readiness Time(s)

6. Service Support Time(s)

7. Service Support Language(s)

8. Service Fulfillment Target

9. Maximum Impairment Duration per Incident

10. Service Delivering Duration

11. Service Delivery Unit

12. Service Delivering Price

The meaning and content of these attributes are:

1. Service Consumer Benefits describe the (set of) benefits which are callable, receivable and

effectively utilizable for any authorized service consumer and which are provided to him as soon
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2017-18
as he requests the offered service. The description of these benefits must be phrased in the terms

and wording of the intended service consumers.

2. Service-specific Functional Parameters specify the functional parameters which are

essential and unique to the respective service and which describe the most important dimension

of the service output, e.g. maximum e-mailbox capacity per registered and authorized e-mail

service consumer.

3. Service Delivery Point describes the physical location and/or logical interface where the

benefits of the service are made accessible, callable and receivable to the authorized service

consumers. At this point and/or interface, the preparedness for service delivery can be assessed

as well as the effective delivery of the service itself can be monitored and controlled.

4. Service Consumer Count specifies the number of intended, identified, named, registered and

authorized service consumers which are allowed and enabled to call and utilize the defined

service for executing and/or supporting their business tasks or private activities.

5. Service Readiness Times specify the distinct agreed times of day when

 the described service consumer benefits are

o accessible and callable for the authorized service consumers at the defined service

delivery point

o receivable and utilizable for the authorized service consumers at the respective

agreed service level

 all service-relevant processes and resources are operative and effective

 all service-relevant technical systems are up and running and attended by the operating

team
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 the specified service benefits are comprehensively delivered to any authorized requesting

service consumer without any delay or friction.

The time data are specified in 24 h format per local working day and local time, referring to the

location of the intended service consumers.

6. Service Support Times specify the determined and agreed times of day when the usage and

consumption of the contracted services is supported by the service desk team for all identified,

registered and authorized service consumers within the service customer's organizational unit or

area. The service desk is the single point of contact for any service consumer inquiry regarding

the contracted and delivered services. During the defined service support times, the service desk

can be reached by phone, e-mail, web-based entries and/or fax, respectively. The time data are

specified in 24 h format per local working day and local time, referring to the location of the

intended service consumers.

7. Service Support Languages specifies the languages which are spoken by the service desk

team(s) to the service consumers calling them.

8. Service Fulfillment Target specifies the service provider's promise of effective and seamless

delivery of the defined benefits to any authorized service consumer requesting the service within

the defined service times. It is expressed as the promised minimum ratio of the counts of

successful individual service deliveries related to the counts of called indivdual service

deliveries. The effective service fulfillment ratio can be measured and calculated per single

service consumer or per consumer group and may be referred to different time periods (workday,

calenderweek, workmonth, etc.)

9. Maximum Impairment Duration per Incident specifies the allowable maximum elapsing

time [hh:mm] between


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 the first occurrence of a service impairment, i.e. service quality degradation or service

delivery disruption, whilst the service consumer consumes and utilizes the delivered

service,

 and the full resumption and complete execution of the service delivery to the content of

the affected service consumer.

10. Service Delivering Duration specifies the promised and agreed maximum period of time for

effectively delivering all specified service consumer benefits to the requesting service consumer

at the defined service delivery point.

11. Service Delivery Unit specifies the basic portion for delivering the defined service consumer

benefits. The service delivery unit is the reference and mapping object for all cost for service

generation and delivery as well as for charging and billing the consumed service volume to the

service customer who has ordered the service delivery.

12. Service Delivering Price specifies the amount of money the service customer has to pay for

the consumption of distinct service volumes. Normally, the service delivering price comprises

two portions

 a fixed basic price portion for basic efforts and resources which provide accessibility and

usability of the service delivery functions, i.e. service access price

 a price portion covering the service consumption based on

o fixed flat rate price per authorized service consumer and delivery period without

regard on the consumed service volumes,

o staged prices depending on consumed service volumes,

o fixed price per particularly consumed service delivering unit.


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2017-18
SERVICE DELIVERY

The delivery of a service typically involves six factors:

 The accountable service provider and his service suppliers (e.g. the people)

 Equipment used to provide the service (e.g. vehicles, cash registers)

 The physical facilities (e.g. buildings, parking, waiting rooms)

 The requesting service consumer

 Other customers at the service delivery location

 Customer contact

The service encounter is defined as all activities involved in the service delivery process. Some

service managers use the term "moment of truth" to indicate that defining point in a specific

service encounter where interactions are most intense.

Many business theorists view service provision as a performance or act (sometimes humorously

referred to as dramalurgy, perhaps in reference to dramaturgy). The location of the service

delivery is referred to as the stage and the objects that facilitate the service process are called

props. A script is a sequence of behaviours followed by all those involved, including the

client(s). Some service dramas are tightly scripted, others are more ad lib. Role congruence

occurs when each actor follows a script that harmonizes with the roles played by the other actors.

In some service industries, especially health care, dispute resolution, and social services, a

popular concept is the idea of the caseload, which refers to the total number of patients, clients,

litigants, or claimants that a given employee is presently responsible for. On a daily basis, in all

those fields, employees must balance the needs of any individual case against the needs of all

other current cases as well as their own personal needs.


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B.Com (Honours) IInd Year
2017-18
6.2 MARKETING EFFECTIVENESS

Marketing effectiveness is the quality of how marketers go to market with the goal of

optimizing their spending to achieve good results for both the short-term and long-term. It is also

related to Marketing ROI and Return on Marketing Investment (ROMI).

Marketing effectiveness has four dimensions:

 Corporate – Each company operates within certain bounds. These are determined by

their size, their budget and their ability to make organizational change. Within these

bounds marketers operate along the five factors described below.

 Competitive – Each company in a category operates within a similar framework as

described below. In an ideal world, marketers would have perfect information on how

they act as well as how their competitors act. In reality, in many categories have

reasonably good information through sources, such as, IRI or Nielsen. In many industries,

competitive marketing information is hard to come by.

 Customers/Consumers – Understanding and taking advantage of how customers make

purchasing decisions can help marketers improve their marketing effectiveness. Groups

of consumers act in similar ways leading to the need to segment them. Based on these

segments, they make choices based on how they value the attributes of a product and the

brand, in return for price paid for the product. Consumers build brand value through

information. Information is received through many sources, such as, advertising, word-

of-mouth and in the (distribution) channel often characterized with the purchase funnel,

McKinsey & Company concept. Lastly, consumers consume and make purchase

decisions in certain ways.


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 Exogenous Factors – There are many factors outside of our immediate control that can

impact the effectiveness of our marketing activities. These can include the weather,

interest rates, government regulations and many others. Understanding the impact these

factors can have on our consumers can help us to design programs that can take

advantage of these factors or mitigate the risk of these factors if they take place in the

middle of our marketing campaigns.

There are five factors driving the level of marketing effectiveness that marketers can achieve:

1. Marketing Strategy – Improving marketing effectiveness can be achieved by employing

a superior marketing strategy. By positioning the product or brand correctly, the

product/brand will be more successful in the market than competitors’ products/brands.

Even with the best strategy, marketers must execute their programs properly to achieve

extraordinary results.

2. Marketing Creative – Even without a change in strategy, better creative can improve

results. Without a change in strategy, AFLAC was able to achieve stunning results with

its introduction of the Duck (AFLAC) campaign. With the introduction of this new

creative concept, the company growth rate soared from 12% prior to the campaign to

28% following it. (See references below, Bang)

3. Marketing Execution – By improving how marketers go to market, they can achieve

significantly greater results without changing their strategy or their creative execution. At

the marketing mix level, marketers can improve their execution by making small changes

in any or all of the 4-Ps (Product, Price, Place and Promotion) (Marketing) without

making changes to the strategic position or the creative execution marketers can improve

their effectiveness and deliver increased revenue. At the program level marketers can
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B.Com (Honours) IInd Year
2017-18
improve their effectiveness by managing and executing each of their marketing

campaigns better. It's commonly known that consistency of a Marketing Creative strategy

across various media (e.g. TV, Radio, Print and Online), not just within each individual

media message, can amplify and enhance impact of the overall marketing campaign

effort. Additional examples would be improving direct mail through a better call-to-

action or editing web site content to improve its organic search results, marketers can

improve their marketing effectiveness for each type of program. A growing area of

interest within (Marketing Strategy) and Execution are the more recent interaction

dynamics of traditional marketing (e.g. TV or Events) with online consumer activity (e.g.

Social Media). (See references below, Brand Ecosystems) Not only direct product

experience, but also any stimulus provided by traditional marketing, can become a

catalyst for a consumer brand "groundswell" online.

4. Marketing Infrastructure (also known as Marketing Management) – Improving the

business of marketing can lead to significant gains for the company. Management of

agencies, budgeting, motivation and coordination of marketing activities can lead to

improved competitiveness and improved results. The overall accountability for brand

leadership and business results is often reflected in an organization under a title within a

(Brand management) department.

5. Exogenous Factors - Generally out of the control of marketers external or exogenous

factors also influence how marketers can improve their results. Taking advantage of

seasonality, interests or the regulatory environment can help marketers improve their

marketing effectiveness.
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B.Com (Honours) IInd Year
2017-18
6.3 MARKET STRATEGY

A marketing strategy can serve as the foundation of a marketing plan. A marketing plan

contains a set of specific actions required to successfully implement a marketing strategy. For

example: "Use a low cost product to attract consumers. Once our organization, via our low cost

product, has established a relationship with consumers, our organization will sell additional,

higher-margin products and services that enhance the consumer's interaction with the low-cost

product or service."

A strategy consists of a well thought out series of tactics to make a marketing plan more

effective. Marketing strategies serve as the fundamental underpinning of marketing plans

designed to fill market needs and reach marketing objectives. Plans and objectives are generally

tested for measurable results.

A marketing strategy often integrates an organization's marketing goals, policies, and action

sequences (tactics) into a cohesive whole. Similarly, the various strands of the strategy , which

might include advertising, channel marketing, internet marketing, promotion and public relations

can be orchestrated. Many companies cascade a strategy throughout an organization, by creating

strategy tactics that then become strategy goals for the next level or group. Each one group is

expected to take that strategy goal and develop a set of tactics to achieve that goal. This is why it

is important to make each strategy goal measurable.

TYPES OF STRATEGIES

Marketing strategies may differ depending on the unique situation of the individual business.

However there are a number of ways of categorizing some generic strategies. A brief description

of the most common categorizing schemes is presented below:


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 Strategies based on market dominance - In this scheme, firms are classified based on their

market share or dominance of an industry. Typically there are three types of market

dominance strategies:

o Leader

o Challenger

o Follower

 Porter generic strategies - strategy on the dimensions of strategic scope and strategic

strength. Strategic scope refers to the market penetration while strategic strength refers to

the firm’s sustainable competitive advantage.

o Product differentiation

o Market segmentation

 Innovation strategies - This deals with the firm's rate of the new product development and

business model innovation. It asks whether the company is on the cutting edge of

technology and business innovation. There are three types:

o Pioneers

o Close followers

o Late followers

 Growth strategies - In this scheme we ask the question, “How should the firm grow?”.

There are a number of different ways of answering that question, but the most common

gives four answers:

o Horizontal integration

o Vertical integration

o Diversification
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o Intensification

A more detailed scheme uses the categories:

 Prospector

 Analyzer

 Defender

 Reactor

 Marketing warfare strategies - This scheme draws parallels between marketing strategies

and military strategies.


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B.Com (Honours) IInd Year
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CHAPTER 7

COMPETITORS
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7.1 COMPETITORS PROFILE

BlueDart

BlueDart is South Asia’s premier courier, and integrated express package Distribution Company. It

has the most extensive domestic network covering over 33,739 locations, and service more than 220

countries and territories worldwide. BlueDart is the only express carrier in the country today which

offers an entire range of services that extend from a document to a charter-load of shipments.

BluDart’s services are relentlessly monitored to deliver a net service level of 99.96%.

FedEx

FedEx Express invented express distribution and is the industry’s global leader, providing rapid,

reliable, time-definite delivery to more than 220 countries and territories, connecting markets that

comprise more than 90 percent of the world’s gross domestic product within one to three business

days. Unmatched air route authorities and transportation infrastructure, combined with leading-edge

information technologies, make FedEx Express the world’s largest express transportation company,

providing fast and reliable services for more than 3.6 million shipments each business day.

DHL

DHL commits its expertise in international express, air and ocean freight, road and rail

transportation, contract logistics and international mail services to its customers. A global network

composed of more than 220 countries and territories and about 275,000 employees worldwide offers
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customers superior service quality and local knowledge to satisfy their supply chain requirements.

India is on the fast track to growth. With increasing trade opportunities, DHL is well positioned to

provide customers in India with integrated end-to-end solutions across domestic and international

express, covering air and road express.

First Flight

First Flight Couriers was founded in 1986 with the setting up of three offices at Kolkata, Mumbai

and Delhi. First Flight has 1200 First Flight Offices across India, 2300 Authorized Collection

Centers, 452 Franchisee Locations Serving over 6700 Pincode Destinations across India with a

Dedicated Workforce of over 17000 plus employees, Strategically located 10 own International

Offices, Serving over 220 countries globally. First Flight’s commitment to corporate excellence and

its yearning towards success has made it a common household name today.

DTDC

DTDC is India’s Largest Express Delivery Network, comprising of over 5800 Channel Partners

spread across the country and a strength of 22,000 professionals enabling deliveries of 11 million

consignments per month across over 10,000 pin-codes in India. Started in 1990 and headquartered in

Bangalore, today DTDC also has a significant global footprint and services 240 international

locations including USA, UK, Canada, UAE, Hong Kong, Australia, China and all ASEAN

countries, through its own operations, joint ventures and business associates. It offers products that

address all Logistics-related needs of its clients, ranging from Express Documents to Heavy Cargo,

from Domestic Premium Products to International Delivery, and from Supply Chain Solutions to

Warehousing.
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B.Com (Honours) IInd Year
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Aramex

Aramex is a leading global provider of comprehensive logistics and transportation solutions.

Established in 1982 as an express operator, the company rapidly evolved into a global brand

recognized for its customized services and innovative multi-product offering. In January 1997,

Aramex became the first Arab-based international company to trade its shares on the NASDAQ stock

exchange. After five years of successful trading, Aramex returned to private ownership in February

2002 and continued to expand and excel as a privately owned company, establishing global alliances

and gaining stronger brand recognition. In June 2005 Aramex went public on the Dubai Financial

Market (DFM) as Arab International Logistics (Aramex) with its shares traded under ARMX. Today,

Aramex employs more than 12,300 people in over 353 locations across 60 countries, and has a strong

alliance network providing worldwide presence.

Professional Couriers

Incepted in the year 1987 with a sole mission of catering effective written messages, documents and

cargo “The Professional Couriers” (TPC) have reached the pinnacle of being a truly professional

courier company, having today the infrastructure for bulk cargo both nationally and internationally,

with a strong work force and a network of offices spread globally. TPC have come a long way in

providing total solutions for a broad spectrum from individuals to leading Public Sector

Undertakings, Government Bodies, Corporates, MNCs, Educational and Financial Institutions .

UPS

Founded in 1907 as a messenger company in the United States, UPS has grown into a multi-billion-

dollar corporation by clearly focusing on the goal of enabling commerce around the globe. Today

UPS, or United Parcel Service Inc., is a global company with one of the most recognised and
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admired brands in the world. As the largest express carrier and package delivery company in the

world, UPS is also a leading provider of specialised transportation, logistics, capital, and e-commerce

services. Every day we manage the flow of goods, funds and information in more than 200 countries

and territories worldwide.

ExpressIt

Expressit is a Customer Interface Logistics provider offering services that simplify the inherent

complications, which are part of doing business in today’s world.The company offers 360 degree

B2C logistics solutions to the Banking, Financial Services, Insurance, Telecom, Retail and Aviation

(BFSITRA) Industries. Expressit strives to bridge the gap between customer expectations and service

provider capabilities. The company constantly adapts to the ever changing requirements of the

market thus enabling its customers to stay ahead of competition.


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B.Com (Honours) IInd Year
2017-18

CHAPTER 8

DATA ANALYSIS
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8.1 DATA ANALYSIS AND INTERPRETATION

1. Which are the logistics services organizations offers?

Table -1 Service Offer

Sl. No. Service Percentage

1 Freight 100

2 Warehousing 89

3 Crossdocking 88

4 Network Design 66

5 Value Adding 98

Chart-1 Service Offer

Valuse Adding,
98 Freight, 100 Freight
Warehousing
Crossdocking
Network Design
Valuse Adding

Network Warehousing,
Design, 66 89
Crossdocking,
88

The pie chart above shows the service offer of each organization. The chart shows that 100%

of the respondents provide freight service and almost 90% provide Warehousing and
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Crossdocking. Only 66% were providing service of Network Design. Other service includes

value adding, which represents 98% of the sample. It includes packaging, labeling etc.

2. Operating with other logistical providers and reasons for decisions.

Table -2 Operate With Logistical Providers

Sr. No. Decisions Percentage

1 Operational Stability 11

2 Cost Effectiveness 10

3 Customer Needs 36

4 Other 96

Chart-2 Operate With Logistical Providers

11 10
Operational Stability
36
Cost Effectiveness
96
Customer Needs
Other

The pie chart above shows the operational decisions and reasons for operations

with other logistical providers. The chart shows that 96% of the respondents operate with

other service providers for different reasons like coordination, clearance, bulk operations etc.

Almost 36% have operations with other providers as per customer needs. Only 11% and 10
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% were providing service along with other providers for the purpose of operational stability

and cost effectiveness respectively. It is stated that 96% of organizations operate with other

logistical providers and remaining 4% as standalone.

3. What is the mode of decisions regarding the operations?

Table-3 Mode of Decision

Sl. Operational Decision Percentage

No.

1 Strategic 37

2 Tactical 88

3 Operational 63

Chart-3 Mode of Decision

63 37
Strategic
Tactical
88
Operational

The pie chart above shows the mode of decisions regarding the operations. The pie chart shows

88% of organizations take tactical decisions followed by 63% with operational decisions and
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37% strategic decisions. Most of the organizations have a mixture of all the decisions in their day

to day as well as in long and short term plans.

4. Which is the area of the activity, that organizations feel best in their service?

Table-4 Best Activity

Sl. No. Service Percentage

1 Freight 98

2 Warehousing 86

3 Crossdocking 87

4 Network Design 4

5 Value Adding 97

Chart -4 Best Activity

97 98
Freight
Warehousing
4
Crossdocking
Network Design
86 Other
87

The pie chart above shows the best activity which organization feels in their operations. The pie

chart shows 98% of organizations have freight in the predominant area, followed by 86% of

warehousing. Another significant area is Crossdocking with 87% as best activity. There is only a
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minor activity based on network design with 4% in pie graph. Most of the organizations have a

mixture of all the activities in their day to day and 97% of organization says other activities bring

in more revenue and the best of their activities, which includes packaging, labeling etc.

5. Number of employees in each type of the service rendered of the organizations

Table-5i Employees

Sl. Departments In Organizations Number of Percentage

No. People in Each

1 Top Management 452 11

2 Operations 468 11

3 Accounts / Finance 451 11

4 Marketing 517 13

5 Human Resource 371 09

6 Documentation /Others 1847 45

Table- 5ii Employees in Gati Ltd.

Sl. Gati Ltd. : Departments Number of Percentage

No. People

1 Top Management 3 14

2 Operations 4 18

3 Accounts / Finance 4 18

4 Marketing 3 14

5 Human Resource 0 0

6 Documentation /Others 8 36
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Table-5iii Employees % of both.

Docu

Top ment
Operatio Acc./Finan Marketin
Manage HR ation/
ns ce g
ment Other

Gati Ltd.

Employees

Percentage 14 18 18 14 0 36

Other

Organization

Employees % 11 11 11 13 9 45
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Chart-5i Employees

50 45
45
40 36
35
30
25 18 18
20 14 14 13 Lintas F&L Employees
15 11 11 11 9 Percentage
10
5 0 Other Organization
0 Employees %

The line charts above shows the comparison of employees in each functional division of

organization with Gati Ltd. . The line chart shows around 14 percentages of people belong to top

management and industry standards has 11 percent, followed by 18% for operations and industry

standards has 11%. Human Resource has to be enhanced and need to be further improved or

need to start in the organization. Documentation also needs to be further strengthened. Marketing

comprises of 14% working in the said area. Most of the organizations have a mixture of top

management with marketing in their activities and functional area. Human Resource comprises

of 371 people and other main area is documentation and workers in the areas of loading,

operational area. This comprises of only 36% and industry standards are of 45%.
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
6. What are the locations to which the company caters to?

Table- 6i Catering Locations

Sl. No. Catering Locations Percentage

1 Asia 100

2 Europe 6

3 USA 89

4 Australia 86

5 Africa 71

6 Russia 98

7 Middle East 98

8 Other 90

Table – 6ii Catering Locations

Asia Europe USA Australia Africa Russia ME Other

Lintas

Freight 100 0 100 100 0 100 100 100

Other

Organizations 100 6 89 86 71 98 98 90
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

6i Catering Locations

0.9 1 Asia
0.06
0.98 Europe

0.89 USA
Autralia
Africa
Russia
0.86 ME
0.98
Other
0.71

Chart – 6ii Catering Locations

1
0.8
0.6
0.4
Lintas Freight
0.2
Other Organizations
0
Asia
Europe
USA

Lintas Freight
Autralia
Africa
Russia
ME
Other

The pie chart above shows each organizations catering location in the world. The chart shows

100% of organizations cater to Asian region followed by 6% to Europe and 89 % to USA. Each

organization has tremendous catering locations with 86% to Australia, 71% to Africa, 98% to

Russia, 98% to Middle East, and 90 % to other locations. Locations mentioned as other is

company catering frequently with repeat orders of customers. Chart 6ii shows Gati Ltd. can

enter European markets and other favourable market is Africa. This can be looked into very

seriously in future business.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

7. Which division of logistical activity earns the maximum rate of profit for each

organization on a scale of 1-10 and overall profit of each organization?

Table-7i -Maximum Rate of Profit Gati Ltd. F&L Compared with Industry Average)

Profit Scale (1 - 10) Freight Wareho Crossdocki Network Othe

using ng Design r

Gati Ltd. Profit Scale 9 4 5 0 6

Industrial Profit Average 7 6.41 5 5 6

Chart-7i - Maximum Rate of Profit

9
10
7
8 6 6 6
5 5 5
6 4
4
Lintas F&L Profit Scale
2 0
Industrial Profit Average
0
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

Table-7ii –Profit of Organization (All Services Combined)

Gati Ltd. Industry Standards

Profit Level in Percentage 13 15.39

Chart - 7ii –Profit of Organization (All Services Combined)

Profit Level
15.39
16 13
14 Profit Level
12
10
Lintas F&L Industry Standards

The bar chart shows each organizations maximum rate of profit in each area on scale of 1-10,

where 1 denotes least profit and 10 denotes the service that fetches excellent profit. The chart

shows Gati Ltd. has ample amount of profit in Freight area followed by Crossdocking and other

value adding activities with 9 and 6 in scale. The chart 7i shows industry average value is 7 for

freight followed by 6.41 for warehousing. It is inferred that freight is giving ample amount of

profit and Cross-Docking, Other including labeling and packaging has industry standards. The

chart 7ii shows profit percentages said by each organization. We can infer that overall profit

percentage for Gati Ltd. has 2.39 percentages lesser compared to industry average. The

organization should implement more strategies to reach industry mark.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

8. Comparison of service offered by Gati Ltd. and rating of other organization in the

industry on a scale of 0- 4.

Table-8 Service Comparison (Scale 0-4)

Ease of Client Customer Website Employee

Service Handling Service Efficiency

Gati Ltd. 3 4 4 2 3

Industry Average 3.84 3.76 3.82 3.29 3.83

Chart-8 Service Comparison

4 4
3.84 3.76 3.82 3.83
4
3.29
3.5
3 3
3
2.5
2
2 Lintas F&L

1.5 Industry Average

0.5
0
Ease of Client Customer Website Employee
Service Handling Service Efficiency

The chart shows Ease of Service is not up to the mark, it shows only 3 for Gati Ltd. and the

industry standards is 3.84. So organization can increase their Ease of Service. Client handling is

satisfactory compared with industry standards. Customer service also has remarkable value

compared with industry. Major area to look into is Website easiness, Employee Efficiency. It can
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
be brought up with a considerable effort by proper handling of human activities by Human

Resource Department.

9. What is the significant lead-time for each service rendered with previous years data of

each organization?

Table – 9ii Lead Time in Days

LEAD TIME IN Freight Warehou Crossdoc Network Other

DAYS(LT) LT sing LT king LT Design LT LT

Gati Ltd. 21 20 30 0 21

Industry Average 23 22 24 10 24

Chart – 9ii Lead Time in Days

30
30 23 24 24
25 21 20 22 21
20
15 10
10
5 0 Lintas F&L
0
Industry Average

The above chart shows the service executed last year in logistics area and the significant lead-

time of each area. The chart shows 4122 numbers of freight service jobs has been executed with

average lead-time of 21 days. Similarly warehousing jobs with 224 and lead-time of 22 days.

While comparing with industry standards Freight is dominating and similarly the main lucrative

area is other (Packaging, Labeling etc.), which has 833 in number and 21 days lead-time.
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
Organizations lead-time is excellent except for Crossdocking. Focus should be to reduce lead-

time and increase more service.

10. Average elapsed time between order receiving and delivery of the service (Inventory).

Table-11 Elapsed Time

Gati Ltd. Industry Standards

Elapsed Time 3 6.9

Chart- 11 Elapsed Time

Elapsed Time
6.9

7
6
5
3
4 Elapsed Time
3
2
1
0
Lintas F&L Industry Standards

The above chart shows the physical verification check and average elapsed time between order

receiving and delivery of the service. The chart shows 89% of organizations have physical

verification. Average elapsed time between order receiving and delivery of service has an

average of 6.9 days. The total value of elapsed time is 613 days for 89 organizations, hence the
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
average days are 6.9 as explained in the figure for Industry average. Lintas elapsed time is

remarkable compared to industry standards.

11. Were there any shortage/ excess of stocks noted, in the last verification done?

Table -12i Inventory Shortage

Gati Ltd. Industry

Inventory Short 12 19.8

Chart-12i Inventory Shortage

Inventory Short
19.8
12
20
Inventory Short

0
Lintas F&L Industry

Table- 12ii Inventory Excess

Gati Ltd. Industry

Inventory Excess 0 4.8

Chart-12i Inventory Excess


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

Inventory Excess
4.8
5
0 Inventory Excess

0
Lintas F&L Industry

The above charts show the Inventory Excess and Shortage faced by organization during

verification. It is evident that shortage faced by Gati Ltd. is less compared to industry standards;

there is a difference of 8. Another aspect is regarding the excess of inventory; in this scenario,

Gati Ltd. has a remarkable lead with comparison to industry.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
12. Average number of customer complaints generated and industry average.

Table- 14 Complaints Gati Ltd. with Industry Average)

Gati Ltd. Industry Average

Complaints Generated Last 290 179.71

Year

Chart – 14 Complaints Gati Ltd. with Industry Average)

Complaints Generated Last Year


350
290
300
250
179.71 Complaints Generated
200
Last Year
150
Linear (Complaints
100 Generated Last Year)
50
0
Lintas Industry Average

The above chart shows average number of complaints. The complaints for Gati Ltd. is 290 and

whereas to industry average is around 180 in number. Hence organization should try to reduce

the complaints arising. This can be achieved by increasing new modern methods and facilities to

customers. Organization need to heavily focus onto the issue to reduce number of complaints

arising in operations, customer satisfaction and other similar areas.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
13. How does the organization follow up to retain customers.

Table-15 Customer Retention

Sl. No. Service Rating


1 Customer Complaints given preference 100
2 Phone 100
3 Service Intimation 100
4 Gifts 3
5 Email 100
6 Fax 11
7 Other 100

Chart-15 Customer Retention

Rating
100 100 100 100 100
100
80
60
40 11
20 3
0 Rating

The above chart shows preference of complaints and how organization follow up to retain

customers. Its been noted that cent percent of organization follow up with customers for

customer complaints. Most of the preferable methods for contacting customers for new service

intimation and customer realtionship are telephone, email and other methods like marketing /

sales, customer office visit with 100 rating. The least preferred are gifts and fax with 3 and 11 in

rating.
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

CHAPTER 9

SWOT ANALYIS
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
9.1 SWOT ANALYSIS
Strength:

 Gati covers 594 districts out of 602 districts in India providing excellent cargo services to

various customers.

 Gati gives more priority to timely delivery than the cost of delivery reflected by vehicle

under utilization.

 Gati was the first company which offered value added services with highest quality to

transport business which was once considered to be a routine business with no scope of value

addition.

 For the successful operation of its business it started a new concept with a group of front-end

entrepreneurial delivery set up popularly known as Gati Associates (GA). This kind of

concept was new to the cargo & courier industries in India.

 Gati was giving assurance a net revenue of Rs 8000/- a month (in 1994) and a financial

arrangement ensured over a period of time to all its GAs for the smooth and successful

running of business.

 In 2000, Gati launched the first railway freight service from Mumbai to Delhi called “Gati

Millennium Train “eying the optimum utilization of cost and grabbing the major share in

Indian cargo market.

 Gati introduces oracle based GEMS package to give all competitive edge to its customers in

leveraging the market opportunities on time.

 It offers cash on delivery for convenience of customers.

 It is the first company which offers money back guarantees policy on cargo services if the

cargos are failed to deliver on time to customers.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
 For first time in India, It is introduced a toll free number for the benefits of customers

regarding the queries on its products, services and operation.

 Introduction of SMS based track system for convenience of its customers to track their

shipment of materials.

 It is introduced a special package named “ Gati Saver” in the courier market of India which

enables its customers to send samples, gifts, study materials and printed material ( up to 4kg)

at a flat rate of Rs.89 with service tax to any where within the country.

 In 2006 Gati has redefined its brand name from “we deliver anything any where” to “ahead

in reach” and changed its logo in order to hold the market leadership in Indian cargo market.

 A leading logistics solution provider in third party logistics sector of India.

 First company of India to introduce 7*24 hr booking system for its customers under the

brand name “Café D’eliver”.

 Provides opportunity to its customers for online track of their shipment.

 Provides other additional services like door pick-up and delivery, holiday and Sunday pick-

up.

 Gati is handling 2.2 million of packages in a month across 29 states in India with assured

delivery date on the docket.

 It has developed the excellent connectivity across the country thus enabling it to provide

unparalleled service to its customers.

 Gati is also investing substantial resources in customer relationship marketing through

regular customer meets and customer carnivals which is a new strategy to this industry and

resulted in creating a unique market to Gati.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
 Gati has done an alliance with Indian Airline in order to provide services in 550 locations

through 150 branches spread all over a single waybill.

 Gati is operating a call centre on 24*7 basis to receive, respond and monitor customer

complaints.

 In the courier segment Gati was one of first companies to use 2kg and 5kg boxes to capture

the retail courier market.

 Gati is only one Indian Cargo company which runs its business in three modes i.e. surface,

water & air.

 Gati is the only cargo company of India which has its own sea cargo division named Gati

coast-to-coast.

 Gati has opened its branches in foreign countries like China, Hong Kong,

Thailand & in SAARC Countries to strengthen its business.

Weakness:

Gati was a late entrant to generic cargo business.

 Gati took roughly four yearly to stabilize the differential express cargo business from simple

cargo business.

 Due to poor positioning Gati Suvidha was failed to attract the customer thus getting low

market share from courier business.

 Gati’s railway cargo project was failed as it was proved to be highly expensive for Gati and

did not fetch good revenue.

 Gati is still lagging in ware house management to its competitors.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
Opportunity:

 Gati’s strategic alliance with Indian air line has created a huge amount of business in air

cargo sector.

 In July 2007 Gati is going to start its own flight operation in association with Indian for air

cargo business.

 Automotive industry in India is growing at 18% per annum creating a huge opportunity for

Indian logistics companies like Gati.

 Textile industry is growing 18-25% per annum in India.

 India’s auto export is growing 25% per annum.

 Indian retail sector is growing 25% annually creating US$ 175-200 billion by 2016.

 Over 8.6 million productions of vehicles with a growth rate over 35% per annum.

 The recent experiment on Alphonoso mango has created a great business opportunity in

packaging for Gati.

Threat:

 Gati’s business model was cloned by several retail courier operators thus creating threat for

Gati’s business.

 Gati’s employees were recruited by its competitors with high salary and other perk and

allowances.

 AFL has ventured in premium cargo (Courier) in the brand name AFL “Wiz” thus creating

threat for Gati’s courier arm Gati-Zipp and Gati-Savor.

 Another major Indian logistics company Patel Road Ways has also entered into retail courier

market in the name of Patel Retail Ltd.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
 Global logistics major “DHL” has opened its office in Gurugaon in order to start its business

in north India.

 First Flight, one of the premiere courier company of India is entered in to air cargo sector

with its two own air craft between Delhi and Chennai and very soon entering in Hyderabad

and Bangalore cargo market.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

CHAPTER 10

FUTURE PLANS
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
9.1 FUTURE PLANS

Gati today surged 9.5 per cent after the company said it will invest in start-ups in the delivery

space as the company tries to achieve its target of delivering 1 million packages per day by 2020.

The stock after a positive opening further gained 9.57 per cent to Rs 118.40 on the BSE. At 1.50

pm, the shares were trading off their day's high at Rs 111.20, up Rs 3.15 or 2.92 per cent. On the

NSE, it jumped 9.57 per cent to Rs 118.45 in morning trade. At 1.50 pm, the shares were trading

at Rs 111, up Rs 2.90 or 2.68 per cent. The express delivery and supply chain solutions firm is

exploring strategies for growth to achieve its vision, it said in a regulatory filing yesterday. “Gati

is exploring the burgeoning start-up environment and looking at strategic investment in start-ups

in the logistics sector,” it added. The firm has progressed “considerably” in this direction, Gati

said, adding that it will “shortly” announce a strategic investment. “We are engaging with start—

ups that are aligned with our business to make a strategic investment. These alliances and

investments will help us build capability and capacity,” Gati’s Chief Strategy Officer Dhruv

Agarwal said in a statement. This is a strategic step towards realising Gati’s long-term vision of

handling 1 million packages daily, he added.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

CHAPTER 11

FINDINGS &

SUGGESTIONS
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
FINDINGS

On the basis of study conducted, it is evident that GATI LTD. is following most of pre-

requisites of an efficient logistics (supply-chain management) company.

However there are some areas, which need further attention for increasing the quality of services.

 Gati Ltd. express ltd. is fully aware of the basic need of customers than its competitors.

 The delivery of goods to the customer in the most reliable transit period (and preferably

the shortest) possible.

 The reverse flow of acknowledged, signed delivery records is trust worthy.

 The country's most reliable air and surface network offers a pre-determined delivery

schedule with close to 100% accuracy.

 Gati Ltd. offers the country's most comprehensive communications technology and

customer software to support critical supply-chain distribution demands.

 Gati Ltd. is mainly focuses on the international services.

 Gati Ltd. does not have very well connection with the national airports.

 The national airport services are limited to certain airports and are very expensive.

 At national level transportation of goods is done via road that makes delay in the service.
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
SUGGESTIONS

 Since Gati Ltd. is mainly focuses on the international services so it must pay attention in

the domestic services.

 Gati Ltd. does not have very well connection with the national airports so Gati Ltd. must

make good connection with the national airports.

 At national level transportation of goods is done via road that makes delay in the service

so the national airport services must be spread to every airport so it will be resulted into

quick service.

 The national airport services are limited to certain airports and are very expensive.

Spreading to the every airport will also result into the reasonable service.
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

CHAPTER 12

CONCLUSION
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
CONCLUSION

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 from point

of origin to point of consumption for the purpose of meeting customer requirements.

A recent US study found that logistics costs account for almost 10% of the gross domestic

product. The process itself covers a diverse number of functional areas. Involved in logistics are

transportation and traffic, as well as shipping and receiving. It also covers storage and

import/export operations.

The Blue Dart fulfill all the necessary and regulatory requirements of the logistics of goods and

service as a renowned ‘supply – chain management company’, it sincerely concentrate on all the

area of its quality services.

Though it always try to fulfill all the requirement of its customers but it is lacking in the case of

domestic services.

It must pay equal attention on the domestic services so that more and more people can take the

advantages of its ultimate services.


Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18

BIBLIOGRAPHY
Nitesh Kumar Singh
B.Com (Honours) IInd Year
2017-18
BIBLIOGRAPHY

WEBSITE- INTRANET:

 www.gati.com

WEBSITE- INTERNET:-

 www.birla.com

 www.google.com

 www.sail.com

 www.bhushan.com

 www.essar.com

MAGAZINES

 Tisco News

BOOKS

 Marketing management- Philip Kotlar

 Marketing management- Kevin Lana Keller

 Marketing management- Abraham koshy

 Marketing management- Mithileshwar jha

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