Structure Of Paper Industry - Finall111

Mysore Paper Mills Limited, Bhadravathi

1. INDUSTRY PROFILE 1.1 Historical Background of the Paper Industry: The paper industry occupies an important place, as paper can be put to many uses. It contributes not only to economic development but also to cultural development. The spread of education and literacy is bound to increase demand for paper. Paper has a long history beginning with the ancient Egyptians and continuing to the present day. For thousands of years hand made methods dominated and then during the 19 th century paper production became industrialized. Originally intended purely for writing and printing purposes, a wide variety of paper grades and uses are available to the consumer. The art of making paper was first discovered in China, 2nd Century B.C. From there it traveled slowly towards Europe. The end of 14th century gave birth to number of paper mills in Italy, France and Germany. In the year 1837, Dr. Charley established a paper mill at ‘West Bengal’. Unfortunately, it was closed in a few years. In 1967, the royal paper mill was set up in West Bengal again. 1.2 INDUSTRY STRUCTURE The per capita consumption of paper in our country has grown marginally from5 kg to 6 kg against Asian average of 28 kgs and the world average of 58 kgs. The growth in paper consumption is directly related to the GDP growth in our country. The growth in our country’s GDP in 2007-08 was about 9.6%. The rate of growth in paper consumption in the country in the last few years has been 6.7%.

Currently there are about 525 paper mills in the country with an installed capacity of 78 Lakh MTs, out of which there are about 32 mills with a capacity in the range of 100 to 600 MTs per day, 110 mills in the 30-100 MTs per day and 383 mills in the 3-30 MTs per day.

During 2006-07, the production of writing, printing, packing paper & board was

approx. 72 Lakh MTs against 68 Lakh MTs in 2005-06 (5.9% growth). The demand for Department Of Management Studies, JNNCE, Shivamogga

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Mysore Paper Mills Limited, Bhadravathi paper in the country went up from 65 Lakh MTs to 69 Lakh MTs (6% growth). Though the overall import (mainly newsprint(7 Lakh MTs) coupled with smaller quantity(3 Lakh MTs) of specialty papers) was in the range of 9.5 to 10 Lakh Tons during 2007-08, the import of newsprint grew marginally from 7.0 to 8 Lakh Tons. The export of paper from the country continued to be in the range of 3-4 Lakh MTs in 2007-08.

1.3 CONSTRAINTS FOR PAPER INDUSTRY 1. Scarcity of Raw Material such as Wood, Agrobased residue, waste paper etc., coupled with high cost of raw material as compared to other countries. 2. Fragmented capacity and Market volumes of each grade of paper are very low – do not justify setting up of large single grade mills. 3. Low economy of scale. 4. Steadily increasing state administered cost and infrastructure cost. 5. Cost of inputs like electricity, coal, chemicals increasing year after year while paper prices are pegged at international parity. 6. Strict environment regulations have forced the industry to go in for new chlorine free technology, reduce water and energy consumption and invest heavily in lime kiln and NCG gas burning.

The biggest constraint for the paper industry in the next few years will be the availability of wood in the country. As per the estimates of IPMA, the wood requirement for the paper industry would go up from 60 lakh tons to 130 lakh tons by 2020. The plantation land required for this, however, can be easily allocated by government out of the vast degraded forest land and the waste land available in the country. However the dependence on imported Pulp will continue along with usage of imported waste paper, as there is no proper collection of waste paper in our country.

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Mysore Paper Mills Limited, Bhadravathi 1.4 GROWTH AND DEVELOPMENTS Considering the present low level of consumption of paper (6Kgs) and the anticipated growth

in

population,

literacy

level

and

living

standards;

growth

in

the

packaging/printing/publishing industries; and the environmental restrictions on the usage of plastics vis-à-vis paper, there is a vast scope for increasing the consumption of paper in the country. As the growth in consumption of paper is directly related to the GDP growth of our country, it is expected that the industry would grow at a rate of over 8% in the coming years. The demand for both WPP (Writing and printing paper) and Newsprint paper would grow. However, in the case of WPP the maximum growth would be in the speciality papers. With growth in literacy by about 10% in the 3-4 years, the demand for paper would increase. In the case of Newsprint the consumption would grow with the increased circulation of most of the Newspaper publications. However, the price war among various publications would continue along with the fight for getting the largest share of the advertisement pie. Advertising in the print media is expected to go up along with advertising on TV and other media Following are the new developments in the Paper Industry that are taking place: 1. Continuous up-gradation of the existing machinery by Mills coupled with introduction of newer technologies of production of paper at lower costs. 2. Most Mills are going in for expansion of their capacities. The additional capacities are in the production of Writing and Printing Paper and not of Newsprint due to higher realization on WPP as compared to Newsprint. 3. More usage of non-wood resources and waste paper by establishment of De-inking plant. 4. In the production of WPP the trend is towards speciality papers like security paper, high brightness copier, lightweight coated paper, tissue paper, etc., where the realization is better. Department Of Management Studies, JNNCE, Shivamogga

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Mysore Paper Mills Limited, Bhadravathi 5. In newsprint, the trend is towards more usage of 45 gsm paper than 49 gsm paper and also high bright paper (around 67 brightness as compared to 55-56 brightness presently available domestically). 6. Since the demand for WPP paper & Board is lower than the current production, Mills are resorting to export of the surplus production. 7. With VAT introduced in most states, Mills have started strengthening their distribution network to take advantage of the lower VAT(4%) in the states against 810% which was prevailing earlier. 8. Availing Carbon Credit by Afforestation and clean development mechanism processes. 1.5 LEADING PLAYERS IN PAPER INDUSTRY: The major players in this sector with their respective production capacity are given below: Company Name TNPL Hindustan newsprint MPM NEPA Rama newsprint

Capacity in Million TPA 0.18 0.11 0.09 0.09 0.06

Table Showing leading players in paper industry (source: magazine of MPM) The public sector units (PSUs) control a major share of domestic production by supplying 60 to 65 percent of total industrial production. Private sector players have very small capacity in comparison to PSUs.

1.6 FUTURE PROSPECTS OF PAPER INDUSTRY:

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Mysore Paper Mills Limited, Bhadravathi  Strong demand from packaging segment will drive demand growth for industrial paper.  Establishment of new business area such as telecom and power will lead to increasing literacy levels, thus improving the low per capita consumption of paper (3.2 KGS per annum). Besides rapid growth in population, enhanced literacy levels, growing quality consciousness and changing consumer preferences will drive paper demand.  In view of the high capital costs, expansion of existing units and revival of sick units remain the practical option for capacity additions. Also, paper mills in India have to look for ways to cut down costs to compete with imports.  International paper prices are not expected to rise substantially over the short-medium term. Domestic paper companies will thus continue to reel under the pressure of reduced margins. However, a app `preciating rupee will marginally protect domestic companies from imports. Due to increased supply, some of the companies have put their expansion plans on hold or have reduced their investment opting for lesser capacity expansions.

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Mysore Paper Mills Limited, Bhadravathi 2.

COMPANY PROFILE

2.1. ORIGIN OF MYSORE PAPER MILLS LTD The Mysore Paper Mills Limited, (MPM) founded by Sri.Krishnaraja Wodeyar Bahadur in 1937 the Maharaja of erstwhile Mysore State was incorporated on 20th May 1936 under the then Mysore Companies Regulation, VIII of 1917. Later it became a Government Company in 1977 under Section 617 of the Companies Act, 1956. The Company has its Registered Office at Bangalore and its plant located at Bhadravati, Shimoga District, Karnataka State. The Company has an Authorized Capital of 150 Crs. and paid up capital of about 120 Crs. The shares of the company are listed in the Bombay Stock Exchange and there are about 17,000 shareholders. While Government of Karnataka holds 65% of the shareholding of the Company, IDBI and other Financial Institutions hold 24% of the shares and shareholding by the General Public is 11%. The company is managed by eminent Board of Directors consisting of IAS, IFS and other professionals. The Chairman & Managing Director of the Company is assisted by a team of professionals in various fields who have expertise in production, finance, marketing etc., with a dedicated team force. MPM with 5000 employees has its own township. About 15000 families of the cane growers who supply sugarcane to the company are directly dependent on this company and many more depend indirectly The direct and indirect contribution by MPM to the local economy is about Rs.170 Cr P.A

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Mysore Paper Mills Limited, Bhadravathi The Objectives of the Company 1. To manufacture and deal in all kinds of paper products. 2. To manufacture and deal in all kinds of sugar and sugar products including alcohol and spirit. 3. To cultivate and raise grass, timber, wood eucalyptus, etc. 4. To meet social responsibility. 5. To provide employment opportunities. 6. To meet the national and regional demand of paper and paperboard. 7. Increase sales and profits of the company. 8. Increase market share and reduce cost of production. 9. Reduce the imports of newsprint from the foreign market. 10. To minimize waste 11. Adopt the best practicable technology 12. Better resource management 13. Protect, sustain, and upgrade local environment VISION: To be a world-class enterprise offering paper, sugar and allied products and services, enhancing stake holders value. MISSION:  Customer satisfaction.  Consistent quality  Competitive price. To Make MPM As A Self Reliant Company By •

Creating a vibrant work culture.

•

Enhancing productivity.

•

Offering globally competitive products and services through continuous technology up gradation and innovation.

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Mysore Paper Mills Limited, Bhadravathi •

To adopt eco-friendly processes

and technologies and up hold corporate social

responsibility Environmental Policy  MPM is committed to the society, to continuously improve its environmental performance by adopting best practicable technologies and processes, which minimizes its impact on environment.  MPM is committed to protect, sustain and upgrade the local environment and health and quality of life of its employees, customers and neighbourers. 2.2 COMPANY'S PHILOSOPHY MPM’s philosophy on Corporate Governance is to attain highest level of transparency in all its operations, to deal with integrity and equity with its stakeholders including shareholders, employees, lenders and the Government, to employ skills that take pride in satisfying customer needs with superior products and services, to contribute towards higher productivity through team work and innovation, to consciously work towards conservation of resources and minimization of wastes of all forms, to achieve customer satisfaction with consistent supply of quality products at competitive prices. 2.3 GROWTH AND DEVELOPMENT OF THE ORGANISATION The company was incorporated in the year 1936, and started with a small capacity of 4000 metric tonnes per annum, with a share capital of Rs 25, 00,000, 10% being contributed by the government of Mysore. The first 4000 tonnes of writing and printing paper produced under the brand name “BISON” was found to be immediately acceptable. Now MPM ltd is a 350 crores public sector company. MPM ltd owns Rs 815 crores worth of land. The company has about 3069 permanent employees on its role. MPM ltd has four regional offices situated at New Delhi, Calcutta, Chennai, and Mumbai with its corporate office at Bangalore. It is the first largest single location integrated plant in the country manufacturing newsprint, cultural verities of paper and sugar. The Mysore Paper Mills ltd has its own forest land of 30,000 hectares for producing the raw material required. Department Of Management Studies, JNNCE, Shivamogga

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Mysore Paper Mills Limited, Bhadravathi

2.4 Milestones: Date 20.05.1936

Particulars Incorporated with an initial share capital of Rs.25 lakhs. Obtained license to produce 4000 Mt. Per annum of Writing and Printing Paper.

01.04.1937

Foundation laid by His Highness Sri KrishnaRaja Wodeyar Bahadur.

1952

Expanded manufacturing capacity to 8000 TPA

1964

Expanded manufacturing capacity to 18000 TPA

1972

Expanded manufacturing capacity to 24000 TPA

13.09.1977

Industrial License was issued for increasing manufacturing for Cultural variety paper to 37000 TPA and setting up a Newsprint Plant to produce 75000 TPA Newsprint

1977

The Mysore paper mills ltd has become Govt company when the state government has increased its share holding in the company to the extent of 56.2%.

11.07.1981

Trial production of Newsprint commenced.

1982

Implementation of Afforestation Project in the Government allocated 75000 acres of Forest area in a phased manner.

1983

2500 TCD sugar project implemented and the MPM ltd become the first largest single location integrated plant in the country.

11.02.1984

Regular crushing of sugarcane commenced

1995

Expansion of sugar mill 2500 TCD to 5000 TCD

2000

Installed with 90 MT capacities of modern Boilers and 16 MT TG to the Mills to boost steam generation and increase the self-generation of power. The Company has ventured to obtain ISO 9001 certificate to boost its image in the trade of business to meet the global competition.

2004

ISO 14001 certificate (for pollution control)

In 1954, the production was doubled to the capacity of 8000 tonnes per annum by taking a loan of Rs 50, 00,000 form the IFCI and loan was repaid ahead of schedule. Department Of Management Studies, JNNCE, Shivamogga

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Mysore Paper Mills Limited, Bhadravathi

2.5 FUTURE GROWTH AND PROSPECTUS: •

MPM has got license to produce liquor

•

MPM is initiating new product development

•

Test marketing of SS Maplitho is in progress.

•

MPM is planning to introduce copier grade in the market shortly

2.6 Production The Company has an installed capacity of 30,000 tonnes per annum for production of writing & Printing Paper, 75,000 tonnes per annum for production of Newsprint and Sugar Mill with a capacity for crushing of sugarcane of 2,500 TCD. The water requirements of the Company are met through adjoining Bhadra River.85% of the power requirements (41 MW capacity) are met through captive power generation. MPM is engaged in the manufacture of varieties of Cultural Paper, Standard and Pink Newsprint and Sugar. MPM is the only company in India to have a sugar factory as an integrated part of the Paper Mill wherein bagasse bye product of sugar is being used as raw material for manufacture of WPP. The average turnover of the Company is about Rs.325 Crs. Per annum of which 65% is from Newsprint, 20% from Writing & Printing Paper and 15% from Sugar. The market share of Newsprint is 11%. Cultural Paper The cultural variety of paper are classified as fallows 1. Writing paper 2. Printing paper 3. Packaging and wrapping paper 4. Special paper The above said writing printing and special paper are classified into following varieties. a. Cream wove

: Uses for pose

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Mysore Paper Mills Limited, Bhadravathi b. Azure laid

: used for ledge paper

c. Color printing

: used mainly for printing (pine, green yellow and blue)

d. Unleaded

: low quality printing paper.

e. MG ribbed

: MG / MF plain used for envelope making

f. MG POSTER

: used to print lottery tickets and wedding cards

g. MG postal colors : used for printing cards h. MG / MF white and colored cover paper : used for book cover i. Mysore bond j. Tea label paper k. Test book printing paper l. Green tint – for making notebook Test for Cultural Paper: The test is conducted according to the Indian Standard Institution’s Specification for the testing of the paper. The test is conducted inorder to maintain the standard quality of the paper. The tests are conducted during the working process of production. The test process are conducted to maintain the following quality, •

Breaking Length

•

Brightness

•

Brust Factor

•

Tear Factor

•

Stiffness Factor

•

Wax absorption

•

Smoothness.

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Mysore Paper Mills Limited, Bhadravathi The following table shows the total production and sales of cultural paper from 2000 to 2007. Year 2000 - 01

Annual production (MT) 27265

Annual sales (MT) 28059

2001 - 02

29188

26260

2002 - 03

34453

30733

2003 - 04

30165

27874

2004 - 05

26139

27915

2005 - 06

22633

22258

2006- 07

30512

29920

2.7 MARKETING SET UP AND DISTRIBUTION CHANNELS: The paper is a consumer oriented product and there is keen competition among various mills. The marketing of paper occupies an important position. Therefore, MPM Limited has set up a separate division to market its products. Marketing division has its headquarters at Bangalore and regional sales office at New Delhi, Mumbai, Kolkata and Chennai and the marketing office at Bhadravathi is the nodal. The products that are marketed by MPM are : i) Paper a) Newsprint-75000 MT per annum b) Writing & Printing Paper-30000 MT per annum ii) Sugar-40000 MT per annum iii) Molasses (by-product)-16000 MT per annum

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Mysore Paper Mills Limited, Bhadravathi Some of the following important documents dealt by Marketing Department are as under : (a) Pricelist (b) Order acceptance (c) Dealer/Customer off take (d) Invoices (e) Payment Forwarding Books (f) Dealership Agreement (g) Party files (h) Contract file (i) Sugar and Molasses Tender files (j) Miscellaneous

The major function of marketing division are: 1.

To ensure that the Machines are provided with sufficient Orders, so that, the capacity utilisations of the Machines are optimum.

2.

Production is not only optimized but also the sales realization is maximized.

3.

Feed-back to Production Department regarding customers’ acceptance of the quality of MPM products.

4.

Regular interaction with the dealers/customers to understand their changing needs

5.

To price the product taking in to account the competition from domestic and international suppliers

6.

To supply the customers material as per their schedules.

7.

Customer Satisfaction-Resolving customer complaints.

8.

Timely collection of payments from customers/dealers.

9.

Adherence to the stipulations given by government in the sale of controlled commodity(Sugar)

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Mysore Paper Mills Limited, Bhadravathi The Marketing Activities/Procedure News Print is marketed directly to large RNI registered News paper publishers by entering in to contract with them. For catering to requirement of small and medium news paper publishers dealer is appointed. The contract with publishers/dealer generally will be with an exchange of letters between the mill and the publishers/dealer. The general procedure followed for appointment of dealer for news print is available with the division. The marketing practice followed by MPM in line MPM sell through a network of dealers. MPM sell approximately 50% of their sale of writing and printing paper through the dealer network (numbering around 80 spread across the country) and the balance directly to government/institutions .The general guidelines/criteria followed in appointment of a dealer in writing and printing paper is available with the division. The marketing practice followed by MPM in line with the trade practice in the paper industry.

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Mysore Paper Mills Limited, Bhadravathi MPM'S PAPER DISTRIBUTION CHANNELS

1.

MPM Godown Ex-Mills Main Dealers (All India Basis) Ultimate Consumers

2.

MPM Godown Main Dealers (MSIL) Sub Dealers Ultimate Consumer

3.

MPM Godown Direct consumers (Like Government Establishment, Universities, Schools,

Authorized publishers and banks and institutional customer)

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Mysore Paper Mills Limited, Bhadravathi

CHAPTER- 3 GENERAL INTRODUCTION 3.1 STATEMENT OF THE PROBLEM: “A study on Customer Attitude and Satisfaction with respect to Cultural Paper of Mysore Paper Mills Ltd., Bhadravathi” has been conducted in Bangalore. In the present market economy, it is very essential to trace customer satisfaction/& attitude and accordingly the problem taken up in MPM with respect to cultural paper justifies the research agenda. 3.2 OBJECTIVES OF THE STUDY: •

To know the level of satisfaction of the customers towards the cultural paper of MPM.

•

To know customer expectation with respect to cultural paper of MPM.

•

To know different attributes taken into consideration by customer while making a purchase decision with respect to cultural paper.

•

To know the criteria used by customers for selecting the source of purchase/Mill.

•

To know the effectiveness of the service and distribution provided by the MPM to its cultural paper customers.

3.3 SCOPE OF THE STUDY: The scope of the study of this report is confined only to Bangalore city. This project is purely done for academic reasons. The time allotted for conducting the study is limited. The study was conducted to know the competitiveness while marketing cultural paper of MPM. As the time was limited the persons interviewed were limited to only 30 customers.

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Mysore Paper Mills Limited, Bhadravathi 3.4 OPERATIONAL DEFINITIONS AND CONCEPTS: Customer Satisfaction Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business and is part of the four perspectives of a Balanced Scorecard. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Customer Satisfaction, by nature, is dependent on an individual’s expectations and previous experience of service. Measuring customer satisfaction Organizations are increasingly interested in retaining existing customers while targeting non-customers; measuring customer satisfaction provides an indication of how successful the organization is at providing products and/or services to the marketplace. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and product/service to product/service. The state of satisfaction depends on a number of both psychological and physical variables which correlate with satisfaction behaviors such as return and recommend rate. The level of satisfaction can also vary depending on other options the customer may have and other products against which the customer can compare the organization's products. The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale. The customer is asked to evaluate each statement and in term of their perception and expectation the of the performance of the organisation being measured.

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Mysore Paper Mills Limited, Bhadravathi ATTITUDES

Consumer researchers asses attitudes by asking questions or making inference from behavior more over, the illustration suggests that a whole universe of consumer behavior of purchase recommendation to others, top rankings, believes, evaluations, and intentions are related to attitudes. What, then, are attitudes? In a consumer behaviors context an attitude is learned predisposition to behave in a consistently favorable are unfavorable way with respect to given object. Each part of definition describes an important property of an attitude and its critical to understanding the role of attitudes in consumer behavior. OBJECT

The word object in our consumer oriented definition of attitude should be interpreted broadly to include specific consumption or marketing related concepts, such as product, product category, brand, service, possessions, product use, causes or issues, people, advertisement, internet site, price, medium, or retailer. In conducting attitude research, we tend to be object specific. ATTITUDES ARE A LEARNED PREDISPOSITION:

There is general agreement that attitudes are learned. This means the attitudes relevant to purchase behavior are farmed as a result of direct experience with the product, word of mouth information acquired from others, are exposure to mass media advertising, the internet, and various forms of direct marketing. It is important to remember that whereas attitudes may result from behavior, they are not synonymous with behavior. Instead, they reflect either a favorable or unfavorable evaluation of the attitude object. Attitudes have consistency: Attitudes are relatively consistent with the behavior they reflect. However, despite their consistency, attitudes are not necessarily permanent they do change. It is important to illustrate what we mean by consistency. Normally, we expect consumer behavior to correspond with their attitudes.

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Mysore Paper Mills Limited, Bhadravathi ATTITUDES OCCUR WITHIN A SITUATION By situation we mean events or circumstances that, at a particular point in time influence the relationship between an attitude and behavior. A specific situation can cause consumers to behave in ways that are seemingly inconsistent with their attitudes. Marketing ResearchThe part of marketing intelligence that involves specific enquires in to problems and marketing activities to discover new information so as to guide marketing decisions. Marketing strategy Successful companies know how to adapt to a continuously changing marketplace. They practice the art of market-oriented strategic planning, the managerial process of developing and maintaining a viable fit between the organization’s objectives, skills, and resources and its changing market opportunities. The aim of strategic planning is to shape the company’s businesses, products, services, and messages so that they achieve targeted profits and growth. 3.5 METHODOLOGY: Research Design Source of data / data collectionThis project report has been prepared by utilizing both types of data, that is primary data and secondary data. For the purpose of collecting primary data personal interview with open and close ended questionnaire was used. The questionnaire was formulated under the guidance of Mr. Vasanth Vete. Manager [marketing] MPM Bhadravathi and T.M. Prasanna Kumar. Faculty member, department of management studies JNN College of Engineering, Shimoga. Data has been gathered from 30 cultural paper consumers.

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Mysore Paper Mills Limited, Bhadravathi Secondary data has been gathered from many published sources such as news papers, Magazines, company reports, standard text books and information from website has been acquired where ever necessary. Sampling planThe sampling method adopted for research was convenience sampling. Sample selection- The survey was conducted in Bangalore market because majority of the customers of MPM are located in Bangalore, and the sample was selected on the basis of information provided by Mr. Ravi Shankar Manager (Marketing) MPM, Bangalore. The target customers of the study consist of the regular and irregular dealers/ customers who purchase the product directly or indirectly from the company. Analysis of data: Data collected was analyzed using simple statistical methods and the same represented using graphs / tables. Then based on findings few suggestion has been put forth. 3.6 LIMITATIONS OF THE STUDY: 1]

The executives of MPM inspite of their own busy business schedules responded and helped fully . But due to restricted time period 100% complete and detailed knowledge could not be acquired.

2]

As the customers are scattered all over India, a primary first hand information from all customers cannot be obtained.

3]

Some of the respondents were uneducated, so there was some difficulty in making them to fill the questionnaire.

4]

The survey was limited to Bangalore city only.

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Mysore Paper Mills Limited, Bhadravathi

5]

Even though MPM has wide range of products, the present study is confined to marketing of cultural paper only.

6]

Despite of all these limitations, efforts have been put forth for making the survey report as realistic as possible with the resource available. Therefore I hope that the conclusions are realistic and correct.

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Mysore Paper Mills Limited, Bhadravathi

CHAPTER – 4 ANALYSIS & INTERPRETATION 4.1 Duration as Customers of MPM. Table: 1 Percentage of Sl. No Particulars 1 Less than 5 Years 2 5-10 Years 3 10-20 Years 4 20 Years and above Total Source: Primary data.

No. of respondents 6 10 8 6 30

respondents 20% 33% 27% 20% 100%

Analysis: From the above table it is observed that among 30 respondents 27% of the respondents are the customer of MPM from 10-20 years and 33% of them are being the customer from 5-10 years and 20% are the customers from less than 5 years and above 20years each.

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Mysore Paper Mills Limited, Bhadravathi

Graph -1 Duration as Customers of MPM. Source: Table No.1

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Mysore Paper Mills Limited, Bhadravathi

4.2 Frequency of purchase with respect to different types of cultural paper Table -2 Type

Frequency of purchase Per week

Cream wove

Per month

1

20

( 3.33%)

(66%)

1

15

Azurlaid

(3.33%) Colour printing

(50%)

1 (3.33%)

Kraft paper

Cover paper

0

0

Per 6 month 6

11 (36.66%) 9 (30%) 3

(10%)

(10%)

5

2 (6.60%) 1

3

(16.66%)

0

(20%)

3 (10%)

6 months & above

(3.33%) 1

14 (46.66%)

(3.33%) 2 (6.66%)

Source: Primary data Analysis: 66% of the respondent says that they are purchasing Cream wove paper per month. 50% of the respondent says that they are purchasing Azurlaid paper per month. 30% of the respondent are purchasing Colour printing paper per 6 months. 10% of the respondent are purchasing Kraft paper per month and equal % are purchasing per 6 month. 46.66% of the respondent are purchasing Cover paper per 6 month. Department Of Management Studies, JNNCE, Shivamogga

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Mysore Paper Mills Limited, Bhadravathi Graph -2 Frequency of purchase with respect to different types of cultural paper

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Mysore Paper Mills Limited, Bhadravathi

Source: Table No.2

4.3 Rating of MPM in Comparison with other suppliers by respondents. Department Of Management Studies, JNNCE, Shivamogga

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Mysore Paper Mills Limited, Bhadravathi Table: 3

Sl. No.

Particulars

No. of Respondents

Percentage of

a

Superior

14

Respondents 46%

b

Competitive

10

33%

c

Inferior

6

21%

30

100%

Total Source: Primary data. Analysis:

From the above table we can observe that among 30 respondents 46% of respondents rate mpm as superior and 33% of respondents rate mpm as competitive and 21% of respondent rate mpm as inferior.

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Mysore Paper Mills Limited, Bhadravathi

Graph -3 MPM in Comparison with other suppliers by respondents.

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Mysore Paper Mills Limited, Bhadravathi

Source: Table No-3

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Mysore Paper Mills Limited, Bhadravathi

4.4 Respondents’ preferred supplier other than MPM : Table: 4

Sl. No.

Particulars

No. of Respondents

Percentage of

a

APPM

9

Respondents 40%

b

TNPL

8

26.6%

c

West Coast

6

20%

d

NEPA

2

6.6%

e

JK

3

10%

f

SeshaShayee

2

6.6%

Source: Primary data. Analysis: From the above table we can see that out of 30 respondents, 40% prefer APPM and 26.6% prefer TNPL Paper Mill. They are followed by West Coast, JK Paper Mill, NEEPA and SeshaShayee in terms of preference.

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Mysore Paper Mills Limited, Bhadravathi

Graph -4 Respondents’ preferred supplier other than MPM :

Source: Table No.4

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Mysore Paper Mills Limited, Bhadravathi

4.5 Respondents Criteria for selection of product purchase. Table: 5 Rank

I

II

III

IV

Total

13

11

5

1

30

Price

(43.33%) 13

(36.66%) 11

(16.66%) 3

(3.33%) 3

30

Service

(43.33%) 1

(36.66%) 4

(10%) 8

(10%) 17

30

Credit

(3.33%) 3

(13.33%) 4

(26.66%) 14

(56.66%) 9

30

Availability

(10%) 2

(13.33%) 2

(46.66%) 7

(30%) 19

30

Demand

(6.66%) 2

(6.66%) 5

(23.33%) 14

(63.33%) 9

30

(6.66%) Source: Primary data.

(16.66%)

(46.66%)

(30%)

Criteria Quality

Analysis: With respect to quality and price most of the respondents have ranked 1 which indicates that they are the most important criteria which the customers consider before making purchase. Similarly. with respect to service most of the respondents have ranked IV , credit - III, Availability - IV, and demand - III.

4.6 Respondents opinion about the quality of MPM Product. Department Of Management Studies, JNNCE, Shivamogga

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Mysore Paper Mills Limited, Bhadravathi

Table: 6 Percentage Sl. No. Particulars 1 Highly Satisfied 2 Satisfied 3 Average 4 Not satisfied Total Source: Primary data.

No. of Respondents 3 16 9 2 30

of

Respondents 10% 53% 30% 7% 100%

Analysis: From the above table it can observed that among 30 respondents 53% of the respondents are satisfied with the quality of the product of MPM, 10% of them are highly satisfied, 30% of them say quality is average and 7% are not satisfied with the quality of MPM Product.

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Mysore Paper Mills Limited, Bhadravathi

Graph -6

Source: Table No.6

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Mysore Paper Mills Limited, Bhadravathi

4.7 Respondents opinion with respect to price and service of M.P.M products. Table: 7

Particulars

Highly satisfied

Satisfied

Average

Not satisfied

Price

16

11

3

0

(53.33%)

(36.66%)

(10%)

05

16

09

(16.66%)

(53.33%)

(30%)

Service

0

Analysis:  53.33% of the respondents say that they are highly satisfied with the price of the products offered by MPM.  53.33% of the respondents are satisfied with service of MPM

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Mysore Paper Mills Limited, Bhadravathi

Respondents opinion with respect to price and service of M.P.M products Graph-7

Source: Table No.7

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Mysore Paper Mills Limited, Bhadravathi

4.8 Respondents opinion about supply of products in time by MPM Table: 8 Percentage Sl. No. Particulars 1 All the time 2 Most of the time 3 Few times 4 Never Total Source: Primary data.

No. of Respondents 10 15 5 0 30

of

Respondents 33% 50% 17% 0% 100%

Analysis: From the above table it can be observed that among 30 respondents, 33% of the respondents are getting M.P.M Products in time always , 50% of them are getting most of the time, and remaining 17% only few times.

There is no negative response from the

respondents about the supply of M.P.M Products in time.

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Mysore Paper Mills Limited, Bhadravathi

Graph-8 Supply of products in time by MPM

Source: Table No 8

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Mysore Paper Mills Limited, Bhadravathi

4.9 Respondents satisfaction with respect to Sales Discount offered by MPM. Table: 9

Sl. No.

Satisfaction

No. of Respondents

Percentage

1

Yes

28

Respondents 93%

2

No

2

7%

30

100%

Total Source: Primary data.

of

Analysis: From the above table it is observed that 93% respondents are satisfied with the Sales Discount offered by the company and 7% are not satisfied.

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Mysore Paper Mills Limited, Bhadravathi

Graph-9 Satisfaction with respect to Sales Discount

Source: Table No.9

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Mysore Paper Mills Limited, Bhadravathi

4.10 Respondents opinion about Credit Facility provided by the company. Table: 10

Sl. No.

Particulars

No. of Respondents

Percentage of

1

Highly Satisfied

3

Respondents 10%

2

Satisfied

15

50%

3

Average

10

33%

4

Not satisfied

2

7%

30

100%

Total Source: Primary data. Analysis:

From the above table we can see that there are 10% of respondents who are highly satisfied with the Credit facility provided by the company, 50% of the respondents are satisfied and 33% said credit facilities offered is average and 9% are not satisfied.

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Mysore Paper Mills Limited, Bhadravathi

Graph-10

Opinion about Credit Facility

Source: Table No.1

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Mysore Paper Mills Limited, Bhadravathi

4.11 Respondents opinion about the companies’ response to their complaints. Table: 11

Sl. No.

Particulars

No. of Respondents

Percentage of

1

Immediate

7

Respondents 23%

2

Reasonable time

15

50%

3

Delay

8

27%

30

100%

Total Source: Primary data. Analysis:

From the above table we can observe that among 30 respondents 23% responded for immediate handling of complaints and 50% of them responded for reasonable time and the remaining 8% responded for delay.

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Mysore Paper Mills Limited, Bhadravathi

Graph-11 Opinion about response to complaint

Source: Table No.11

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Mysore Paper Mills Limited, Bhadravathi

CHAPTER- 5 SUMMARY OF THE FINDINGS Place

:

Bangalore.

Survey Size

:

30 Respondents

Time frame :

6 Weeks

The summary is purely based on analysis and interpretation of primary data in the present study primary data plays a vital role. As our survey is limited in Bangalore city only. This study gives a bird’s eye view about their opinions of MPM cultural paper. •

We can understand that MPM is having more customers (33%) who are dealing from long time (5-10 years). Therefore, it is clearly showing that MPM is maintaining good relationship with their customers.

•

It is evident that each variety of cultural paper is being procured at different frequency and comparatively Cream Wove and Azurlid papers have more demand in the current market.

•

We can observe that, about 46% of respondents rate mpm as superior and 33% of respondents rate mpm as competitive and 21% of respondent rate mpm as inferior.

•

We can observe that, about 40% prefer APPM and 26.6% prefer TNPL Paper Mill.

•

With respect to quality and price most of the respondents have ranked 1 which indicates that they are the most important criteria which the customers consider before making purchase.

•

We can observed that, about 53% of the respondents are satisfied with the quality of the product of MPM.

•

We can observed that, about 53.33% of the respondents say that they are highly satisfied with the price of the products and services offered by MPM.

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Mysore Paper Mills Limited, Bhadravathi

•

We can be observed that, about 33% of the respondents are getting M.P.M Products in time always , 50% of them are getting most of the time, and remaining 17% only few times. There is no negative response from the respondents about the supply of M.P.M Products in time.

•

We observed that about 93% respondents are satisfied with the Sales Discount offered by the company and only 7% are not satisfied.

•

We observed that, about 10% of respondents who are highly satisfied with the Credit facility provided by the company, 50% of the respondents are satisfied, 33% said credit facilities offered is average and 9% are not satisfied.

•

We can observe that, about 23% responded for immediate handling of complaints and 50% of them responded for reasonable time and the remaining 8% responded for delay.

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Mysore Paper Mills Limited, Bhadravathi

SUGGESTION •

The company has to give importance to manufacture different variety of products and improve its quality.

•

The company has to give importance to know the products dealing by its competitive company’s and the quality, and should try to compete with that company.

•

The company has to give more important to pricing and quality factors by comparing to its competitors while marketing the product. To capture more market share the company should think over the improvement in quality of cultural paper and at the same time should think over the issue of reducing the price. To improve the quality, MPM should update its technology & improve the quality of raw material consumed . •

The company should works towards reducing the cost of production to provide competitive price in the market.

•

The company has to work to increase its discount level from 3% to 3.5% - 5% for the bulk purchasers to highly satisfy them.

•

The company should provide sufficient credit period from 15-20 days to 20-25 days to its customers to highly satisfy them.

•

The company has to improve it’s after sales service and should respond immediately for the complaints of its customers.

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Mysore Paper Mills Limited, Bhadravathi

CONCLUSION

This study is undertaken to find out the satisfaction level of the customers of Mysore Paper Mills. This study helped to understand the customer’s requirement and their expectation from cultural paper of MPM. This study revealed that quality and price are the major attributes, which the customers takes into account while making the purchase decision. Customers of MPM are highly satisfied with the availability of the MPM product but it has to still improve its quality of paper and offer the product `at competitive price in the market. MPM is operating with its existing technology, which requires modernization; hence the company should modernize it’s plant and adopt new technologies to produce special type of products to compete in the present scenario.

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Mysore Paper Mills Limited, Bhadravathi

EXECUTIVE SUMMARY As a part of my curriculum a project work entitled “A study on Customer Attitude and Satisfaction with respect to Cultural Paper of Mysore Paper Mills Ltd., Bhadravathi” was undertaken after 3rd semester. This study throws some light on Paper Industry, Profile of Mysore Paper Mills Ltd., along with the problem taken for study . In this study the required information was collected in two ways: 1. Personal Interview through questionnaire 2. Website, magazine, marketing books, newspapers and company report etc. Primary data was collected using a questionnaire. The survey was conducted in Bangalore market and the sample was selected on the basis of information provided by the Marketing Manager of MPM. The target customers of the study consisted of main dealers and their sub-dealers in Bangalore. Based on the study, certain inferences have been drawn and a few suggestions have been made for improvement of Mysore Paper Mills Ltd. This study revealed some useful insights related to Cultural Paper quality, variety, price and service offered by the MPM . And it also revealed problems faced by the Cultural paper industry in the open market economy with special reference to MPM Cultural Paper segment. To sum-up, this study is expected to help the MPM Ltd. in terms of improving or retaining its market share.

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Mysore Paper Mills Limited, Bhadravathi

BIBLIOGRAPHY 1. MARKETING MANAGEMENT by Philip Kotler

2. MPM records and annual reports

3. News papers and Magazines

4. Encyclopedia

5. www.mpm.co.in

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