Cold Storage Industry, Apmc Market

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Chapter 1

Introduction to industry

Objective:

The purpose of report is to explain the practical learning gained during the period
of 8 weeks at Sarveshwari Village Industries (Nafed Cold Storage) while doing
summer internship.

1.1 Introduction:

India is second largest producers of fruits and vegetables in the world but its share
in the world market both in fresh and processed form is less than one percent.
Moreover due to inadequacy of infrastructure and processing facilities a large
percentage of horticultural produce gets perished before it reaches the consumer.
Fruits, grains vegetables and flowers being much more remunerative than the cereal
crops, have registered a constant increase in their production in the last few
decades. It is estimated that on account of inadequate post harvest infrastructure
substantial percentage gets wasted. Several institutions have reported that
depending on various type of crops seasons of production and markets the factors
like harvesting , post harvest handling storage transportation etc. cause major
losses.

As per general estimates the total turnover in the food market is approximately Rs.
250,000 crore of which value added food products comprises Rs. 80,000 crore.
Since liberalizations in August 1991 and till December 1998 proposals for projects
of over Rs. 72,000 crore have been proposed in various segments of the food and
agro processing industry.

According to a study by the National Council for Applied Economic Research


(NCAER), the Indian food market in 1995 was Rs. 248,000 crore. According to A
CII-Mc Kinsey report on processed foods industry the food market at 1995 prices is
estimated at Rs. 225,000 crore. According to the study, the frozen vegetables

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market has the potential to touch Rs. 350 crore in value terms by 2005. But this
would be possible only if adequate cold storage facilities are available in different
parts of the country. Maintenance of cold chain being essential in this sector,
logistics play a very important role. The total cold storage capacity is over 100
million tonnes per annum, resulting in an estimated wastage of Rs. 23,000 crore
annually.

The food processing industry in India is regarded as a sunrise industry. Companies,


big and small are gearing up to grab a slice of the processed food market.
According to the National Council for Applied Economic Research (NCAER) the
number of households buying basic food items is likely double to 33.1 million in
the next eight years compared to 18.1 million on subsistence diets and 2.5 million
premium foods consumers.

Creation of storage is the only remedy that could reduce perishability and hence
value addition. With adequate storage and modern processing facilities India could
emerge as a leading exporter of horticultural produce. The agrarian base of India
offers a great potential for processing of fruits and vegetables. Several states and
the Central Government have introduced incentive schemes to promote the industry
as it is considered to be one that can play a major role in upgrading the standard of
life of framers.

Prospects for Cold Storage

The preservation of perishable food stuffs is a matter of vital importance in this


country, especially when there is a problem of food shortage and the loss of food is
abnormally high due to the lack of proper storage facilities at many producing and
consuming centers. It has been observed that certain important nutritive foods like
vegetables, fruits, eggs, etc. are available in abundance in the production season
and their prices drop to unremunerative levels, thus causing a serious
discouragement to increase production. Due to the lack of facilities for proper
preservation the commodity is scarce in the off season and the prices shoot up

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considerably. The provision of cold storage facilities as has been experienced
would

1. Prevent wastage of food stuffs

2. Ensure remunerative prices to the producer which would in itself provide the
incentive for increased production

3. Ensure steady supplies over a longer period of time

4. Stabilize prices

It is therefore, desirable to set up a chain of cold storage and frozen food storage
especially in the major producing and consuming centers, if feasible.

There are many kinds of vegetables and fruits and other food stuffs which can be
stored in cold stores for periods ranging from two weeks to over eight months. As
per the report of NAFED shows that the total capacity available now in
Maharashtra is about 200,000 M.T. which is meager, as compared to the capacities
available in states like Uttar Pradesh, Bihar, West Bengal, Punjab etc. It is,
therefore clear that a good scope exists for establishing additional cold storage
facilities in Maharashtra.

1.2 General Information on Storage of Various Commodities

The refrigerated storage which includes the cold storage and frozen storage is one
of the best known methods of preservation of food stuffs to retain the food value
and flavor. Although, refrigeration is an expensive process, the cold storage unites
of properly selected capacities can be economically viable. The economic concept
of the cold storage is that the storage cost must be less than the difference in price
of the commodity stored, between flush and lean season.

In case of fruits and vegetables, the post cold storage period is an important
consideration for deciding whether the cold storage could be located at the
producing or the consuming items like potatoes, apples, Raisins, Tamarind and
some other Dry fruits and spices have a better post cold storage life and therefore,
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storage for those commodities can be set up both at the producing and the
consuming centers.

Cold Storage in Navi Mumbai

After the market s shifted to Navi Mumbai the need for cold storage capacity rose
substantially and number of cold storage units have been established in the APM
Yard as well as TTC area developed by MIDC.

Some of the major units include MAFCO, Himachal and UP Cold storage,
PRABHU HIRA cold storage, polar cold storage which are located in the APM
Yard having a capacity of more than 2001, M. T. The units located on TTC area
include Savala Food and cold storage which is one of the largest multi commodity
cold store in the country with the capacity of 16,000 M.T. the other major units in
this area include Crescent Cold Storage, Mehta Cold Storage, Shanu Cold Storage,
Mayur Cold Storage etc. It has been observed that a number of units have expanded
their capacities after a few years of operation the general trend shows that the
requirement of cold store capacity has steadily been going up and the need exits for
some more units.

It has been observed that practically all the cold storage units have occupancy in
the range of 90 to 100 % for about 8 months in the year. In the remaining period the
remaining period the occupancy is in the range 50 to 70 %.

Market Yard at Turbhe

The APM yard in Turbhe was developed by CIDCO with the view of shifting the
wholesale food markets from Mumbai and involved development of infrastructure
for handling, storage and marketing of various commodities such as fruits and
vegetables, spices, Dry fruits, Cereals etc. after the markets were shifted to the
APM Yard in Navi Mumbai the requirement of cold storage capacity has been
going up steadily in this area.

Other Possible Activities Connected With the Cold Storage

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Usually, some other activities are also possible along with a cold storage unit.
These include

1. Pre cooling

2. Processing grading and storage of fruits, vegetables etc.

3. Milk processing and storage

4. Processing and freezing of fruits and vegetables

5. Controlled atmosphere stores etc.

However, these facilities need additional space, higher investments and involve day
to day production like activities.

1.3 Incentives and Financial Policy

The government of India, ministry of agriculture has approved the capital


investment subsidy scheme for construction, expansion, modernizations of cold
storages and storages of horticulture produce. The national horticulture board
announces the implementation of this scheme. The feature of the scheme is as
under:

For wider dispersal, projects up to 6000 M. T. capacity would be preferred. The


cost of 5000 M.T. capacity now cold storage and expansion of existing capacity
should not exceed Rs 2.10 crore @ Rs. 4000 per tonne, for modernization @ Rs.
1000 per tonne.

25% promoter’s contribution

50% term loan by commercial Co-operative banks at PLR-1% through NABARD


refinance.

25% back ended capital investment subsidy National Horticulture Board shall be
routed through NABARD/NCDC for opening Borrower rise subsidy Reserve fund

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account by lending commercial/Co-operative banks. The subsidy is restricted up to
Rs. 50 Lacs.

Wherever term loan are not raised from institutional sources and the promoters
fund projects entirely through internal resources generation, such proposals be
submitted to NHB directly for availing subsidy after completion of the project.

Emphasis shall be laid on the following

Reducing PHM losses with multi chamber and multi product facilities

Modern design/technology and energy saving equipment / devices to be adopted to


avoid obsolescence of machinery, etc.

Applications to be submitted to commercial /co-operative banks and NCDC (As the


case may be) on their applications format and National Horticulture Board may be
informed accordingly.

Eligible Organizations

The scheme include , cooperatives Companies, Corporations, Partnership and


Proprietary firms, Agriculture Product Marketing Companies, Committee, Boards,
Agro industries Corporations, Grower’s Associations and NGOs.

Note:

The scheme offered by NABARD is based on construction rates of Rs. 4000 per
M.T. which are valid only for large sized bulk cold stores as generally constructed
in North India. In case of multipurpose, multi chamber units especially located in
Mumbai region the construction costs are higher due to higher land and other
material and labour costs and better technical designs.

Cold Storage Data of Various Fruits and Vegetables

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Product Storage Cold Normal
Temperature storage Period of
(Degree C) Life Storage
(week)
Potato 2-4 32-36 March to
October &
December
to January
Cauliflower 0-1.5 8-10 February to
April &
August to
October
Cabbage 0-1.5 10-12 February to
May &
August to
October
Tomatoes 7 4-5 April to
May &
September
to October
Ginger 2-4 14 February to
May
Lime 8 6 March to
April &
August to
September
Orange 7-8 8 February to
April
Mosambi 6-8 8 April to
July &
November
to February
Apples 0-15 16-20 October to
march
Eggs 1-5 20-24 May, June
to
7 November,
December
Mango 8-10 4-6 May to
June
Annexure 1

Cold Storage Data on few products

Products Temperature Relative Normal


(Degree. C) Humidity period
of
(%)
storage

Beans (Dried) 1 85 3
months

Peas (Dried) 2-15 - Long


term

Pepper/Chilly 0-4.5 65-75 6-9


(Dry) months

8
FRUITS/DRY
FRUITS

Peanuts 5-9 66-75 6-9


/walnuts months

Almonds 15-20 - 4/6


(Shelled) months

Currants 1 80 2
months

Apricot 0-4.5 55-65 12


months

Dates (sucrose 0 70-75 6


or hard type) months

Dates soft -2 – 0 - 6
months

Butter -10 80 6
months

Figs 0-4.5 50-60 12


months

9
Ref: ASHRAE DATA Book/other literature.

Annexure 2

List of Cold Storages

Navi Mumbai

Name Address Capacity in Product


Cu Stored
Mtr/M.T.

Polar Cold Navi 1350 M.T. Dry Fruit,


Storage Pvt Mumbai- pulses,
Ltd 400 703 Spices

Igloo Cold Navi - Milk


Storage Pvt Mumbai- Products Etc
Ltd 400 703

Venus Cold Navi - Dry Fruits,


Storage Mumbai Pulses,
Spices

Jainex Navi - Frozen foods

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Foods (P) Mumbai –
Ltd 400 05

Vishal Ice Navi - Dry Fruits,


Factory & Mumbai – Pulses,
Cold 400 05 Spices
Storage Pvt
Ltd

Forstar Taloja, Navi - Frozen foods


Frozen Mumbai-
Foods (P) 400 208
Ltd

Tedco Cold R-54, 1500 M.T. Dry Fruits,


Storage MIDC Pulses,
Rabale, Spices
Navi
Mumbai –
400 701

Jay Bharat D-25/11, 250 M.T. Dry Fruits,


Ice Co Pvt MIDC , Pulses,
Ltd Navi Spices
Mumbai-
400 705

Mehta Ice D-36/4, 300 M.T. Dry Fruits,


& Cold MIDC, Pulses,
Storage Turbhe, Spices
Navi
Mumbai-
400 705

CJ Jain Plot no – B- - Frozen


Food 7, MIDC Foods

11
Processing Ind. Area,
& cold Digha, Navi
Storage Pvt Mumbai-
Ltd 400 708

Shriram Ice Plot no – 800 M.T. Frozen


& Cold 16/17, Foods
Storage MAFCO
APM Yard,
Turbhe,
Navi
Mumbai –
400 705

MAFCO APM Yard, 2000 M.T. Frozen &


(P) Ltd Turbhe, fresh Foods
Navi
Mumbai

Mehul Ice APM Yard, 350 M.T. Milk


& Cold Vashi, Navi products &
storage Co Mumbai etc
Pvt Ltd

Modern 220-Atlas 550 M.T. Meat, Fish


Cold Mills & Eggs
storage compound,
Reary
Road, Navi
Mumbai

Savla Foods MAFCO, 1600 M.T. Frozen


& Cold APM Yard, Foods &
Storage Pvt Navi pulses, Dry
Ltd Mumbai Fruits/Fresh

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fruits

Bhanu Ice APMC 3000 M.T. Dry Fruits,


& Cold Market, pulses,
Store Turbhe, Spices
Navi
Mumbai-
400 708

Prabhu Hira MAFCO, 2500 M.T. Dry Fruits,


Cold APM Yard, Vegetables,
Storage Navi Spices,
Mumbai Frozen
Foods

Himachal MAFCO, 3500 M.T. Dry Fruits,


Cold APM Yard, Apples,
Storage Navi Spices
Mumbai

Crescent Mahape, 3500 M.T. Dry Fruits,


Cold Navi Spices,
Storage Mumbai frozen &
Fresh Foods

U.P. Cold MAFCO, 3000 M.T. Dry Fruits,


Storage APM Yard, pulses,
Navi Spices
Mumbai

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Annexure 3

List of Cold Storages

Mumbai

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Name Address Capacity In Product
Cu/Mtr Stored

Sood Plant no- 5, 250 M.T. Dry Fruits,


Enterprises Chakla, Vegetables,
Andheri Spices
east,
Mumbai

Sunder Prem 1200 M.T. Dry Fruits,


Cold Estate, Vegetables,
Storage Cross Spices
Lane,
Mazgaon,
Mumbai

Ideal Ice & Plot No-D- 300 M.T. Meat,


Cold 3, St No Marine
Storage Co 16, Marol products
Ltd Ind Area,
MIDC
Andheri,
Mumbai –
400 093

Mulund Shah Ind 800 M.T. Pulses, dry


Cold Estate, Fruits,
Storage & Vera Desai Spices
Ind Pvt Ltd Road,
Andheri
west,
Mumbai

Shiv Cold Lal 2000M.T. Meat, Fish,


Storage Bahadur Vegetables
Shastri
marg,
Bhandup,
Mumbai –
400 078 15

Best Zakaria 300 M.T. Dry Fruits,


Potatoes Bunder Spices
Annexure 4

Information about existing cold stores in Mumbai, Thane and Navi


Mumbai Areas

Mumbai Thane/ Navi


Mumbai

No of Cold Storage 71 70

Total Storage 68,938 2,88,640


Volume m3

Total Estimated 20,000 85,000


storage Capacity
M.T.

Application Wise
Nos.

Hotels 24 -

Milk & Milk 14 13


products

Multipurpose 23 29

Meat Products 4 6

Marine Products 6 20

16
F&V - 2

Annexure 5

Commodities stored in Cold Stores in Mumbai Region

Fruits & Vegetables Potato, Apples, Export & Domestic


Mangoes, oranges,
Kiwi Fruits, Grapes,
Pomegranates

Spices Etc Red Chilies , Chili Domestic


Powder, Coriander
(Dhania), Cumin
Seeds (Jira),
Tamarind,Ginger,
Clove etc.

Dry Fruits Dry Dates, Wet Import & Domestic


Dates, Raisins,
Acrot, Almond,
Pista, Cashew nuts,
Apricot, Cherry etc.

Other Items Eggs, Jaggery, Milk Domestic


Products, Chemicals,
Pharmaceuticals etc.

Frozen Products Butter, Ice Cream, Export & Domestic


Meat, Poultry
Products, Processed
Food & Vegetables
Products
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Annexure 6

Chapter – 2

Introduction to Sarveshwari Village Industries (Nafed Cold


Storage)

2.1 History:

Sarveshwari village industry was established in the year October, 2001. The
objective of the company was to promote product of village industries &
agriculture products. The company has first set up a unit in Jaunpur, Uttar Pradesh
for manufacturing handmade paper & handmade woolen carpet. The product were
export oriented therefore it has been exported to various countries like Germany &
European country.

The companies diversify and entered into the warehousing business. It has acquired
a cold storage owned by NAFED on lease basis & managing successfully with
effect from November 2004. It is a partnership organization. Its chief executive is
Mr. Sailesh Singh, having vital experience in the field of business as per objective
of the company & good command in managing cold storage business. The other
partner Mr. Jaipal is also having tremendous experience in the international
business & finance. It is one of the main players in the cold storage industry at
APMC market. It is spread over the area of 3000 sq meter. The cold storage is
situated in the heart of APMC market, Navi Mumbai from where fruits, vegetables,
dry fruits, spices & pulses are available in sizeable quantity. Therefore, huge store
of commodity are available in to cold storage. There are excellent facilities
available for the loading & unloading of vehicles.

There is ample open space available which is an additional facility available for
clients for grading, packing of the products.

Manpower and Organizational Structure

The personnel requirement of the cold storage unit is as under:


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Manager (1):

The Manager is in charge of cold storage for efficient and continuous running of
the plant. He is also responsible for procurement, preservation and marketing &
booking of material for storage as well as general administration.

Plant Operators (4):

They are incharge & responsible for maintaining proper temperature & humidity
and for carrying out the actual repair and maintenance of the equipment.

Accounts Clerk (1):

The role of clerk is to keep necessary accounting records, handling of cash and
other matters relating to the accounts section.

Others: Helpers (4), Security Guard (3), Peon (1)

2.2 Organizational Structure

Chief Executive Officer

Manager

Plant Operator Accounts Clerk

Helpers Security Guard/Peon

2.3 List of clients of Sarveshwari Village Industries


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Client Address Contact

Agri Trade India Anna Bhavan, 022 3246699/022


Services Pvt Ltd Ground floor, Dana 3770999
Bunder, Mumbai-9

Khushbu Impex Block no 4, Ground


floor, plot no 578/A,
Jam-e-Jamshed
Road, Matunga ,
Mumbai- 400 019

Bombay Exports 33/35, 2nd Matru 022 22406075/022


Vatsalya, 22408642

Bhuleshwar,
Mumbai- 400 002

Aarambh India Pvt 189 central facility 022 40139037


Ltd building, No 2 ,
APMC, Sector- 19,
Vashi, Navi
Mumbai

Usha International 134, kana chambers, 022 22690696


Modi street, 3rd
floor, Fort, Mumbai
-1

Few Products Stored At Sarveshwari Village Industries

Vegetable (Padwal)

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Pulses

Pomegranates

21
Lemon

Red Pumpkin

22
Green Chilly

Chile Apple

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Designs of Cold Storage

Cooler without Floor

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Cooler with Floor

Freezer with Floor

25
General Descriptions:

Thermal Insulation and Insulation and Insulated doors:

Thermal Insulation of cold storage

Walls:

With ND quality EPS of appropriate thickness in one/two layers finished with pre
coated sheets.

Ceilings:

With ND quality EPS of appropriate thickness in two layers and finished with pre
coated sheet

Floor:

With HD quality EPS of appropriate thickness in two layers and finished with
tarrelt and P.C.C.
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Insulated Doors:

Insulated doors with main frame and shutter with PUF insulation and Al. Cladding
complete with heavy duty latches and things with strip curtains.

2.4 Operational Requirements and utilities

Cold storage plants being the plants for preservation do not require any raw
material etc for operation. The refrigeration plant work on a refrigerant medium
which can be Ammonia or HFC/HCFC. In India over 95 % of the large sized cold
storage plants are designed for Ammonia refrigerant due to the simplicity of
operation maintenance and the lower cost of the refrigerant which is needed only to
make good for losses which may occurs during repairs and maintenance of
HFC/HCFC are generally used on smaller plants which are designed for automatic
operations. Now that the CFCS and some HCFCs have been identified as the gases
responsible for damaging the ozone layer surrounding the earth’s atmosphere the
production of these are being phased out gradually and as such the availability
would pose a problem in the coming years. The alternative developed for these
gases are still imported and are very expensive.

For this reason at Sarveshwari we use the refrigeration system designed to work on
Ammonia refrigerant with proper technical Specification.

The main utilities for the operation are the power and water and the estimated
quantities are as given below:

Power: 136 KVA, 3 Phase, 50 C/s, 400/40 V A.C. Supply

Water: 15,000 liters/day (for plant and other consumption). The water used has to
be reasonably potable and soft

Effluent Disposal:

There is no objectionable effluent generated in a cold storage plant and hence the
problem of effluent disposal does not arise.

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Chapter – 3

Cold Storage Industries

3.1 Need for Cold Storage

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Cold Storage would result in less wastage of foods. It will enhance to the value and
the quality of the foods. Thus it will contribute to healthy eating habits. Also it will
contribute towards the employment generation. Will over all contribute to the
economy; it can prove beneficial to the farmers and will help them in getting value
for money, will help in getting remunerative income for farmers.

3.2 Status of Cold Storage Industries:

Size of food market in India-Rs.8,60,000 Crores. Primarily processed food market


– Rs. 2,80,000 crores. Value added processed food market – Rs. 1, 80,000 Crores.
Investment during the 10th plan is estimated at Rs. 62,105 Crores. Industry growth
rate during the last five years is estimated at 7.14% against GDP of 6.2%.
Investment required during next ten years – Rs. 1, 10,000 Crores. Low level of
processing is done mainly. 2% in the case of fruits and vegetables, 14%in milk, 4%
in fisheries, 1% in meat and poultry products. India’s share in world’s processed
food production-1%. Value addition 20% against 45% in Philippines. India’s share
in global agricultural export is 1.6% of $520 billion. Exports have stagnated during
the last five years. There is unorganized marketing and distribution of food items.
72% of food consumption in the world is through organized set up whereas it is 1%
in India. Fragmented retailing results in high cost due to inefficiency, wastage.
Estimated wastage fruits & vegetables in India 35 %.

80

70

60

50
percentage

40
Cold Storage of Food and Vegetables
30

20

10

0 29
USA Brazil China Thailand India
3.3 Why Increased Focus on Cold Storage

The second Green Revolution will be centered on the concept of ‘farm to plate
‘.Low share of processed foods in the country will open doors to other countries to
tap the emerging market for processed food triggered by a burgeoning middle class
with increased purchasing power. The Horticulture Mission targets to increase the
production of fruits and vegetables to 260MT from the current 140 MT through
several interventions. The current wastage is 35% in fruits and vegetables and in
certain cases as high as 60%.

Apple is the major crop grown in Himachal Pradesh, Jammu & Kashmir due to
favorable climate, but there is a rare consumption. But the major consumptions of
the product is in other states before a decade there was huge production of the
apples but there was not sufficient current demand. This could have been preserved
if cold storage facility were available locally. But it was deteriorated n had to be
thrown away due to lack of cold storage facility. Similar scenario was observed in
Uttar Pradesh were there was ample production of potatoes but due to lack of cold
storage facility there was a huge loss. As a result Farmers, Traders suffered huge
loss. Earlier setting of cold storage unit was very costly as there was not much
more subsidy or government assistance available to the industrialist. Hence there
was not enough cold storage. When huge loss was suffered to farmers, there was an

30
agitation, protest by the framers, local leaders which got the attentions of
government. There after government has declared 50 % subsidy on set up of the
cold storage unit & NCDC National Co-operative Development Corporation are
providing financial assistance on very nominal rate. This has encouraged farmers &
entrepreneurs to Set up cold storage unit with modern technology facility. Now
many cold storage units have come into existence.

3.4 Why Marketing is Needed in Cold Storage

Apple is the major crop grown in Himachal Pradesh, Jammu & Kashmir due to
favorable climate, but there is a rare consumption. But the major consumptions of
the product is in other states before a decade there was huge production of the
apples but there was not sufficient current demand. This could have been preserved
if cold storage facility were available locally. But it was deteriorated n had to be
thrown away due to lack of cold storage facility. Similar scenario was observed in
Uttar Pradesh were there was ample production of potatoes but due to lack of cold
storage facility there was a huge loss. As a result Farmers, Traders suffered huge
loss. Earlier setting of cold storage unit was very costly as there was not much
more subsidy or government assistance available to the industrialist. Hence there
was not enough cold storage. When huge loss was suffered to farmers, there was an
agitation, protest by the framers, local leaders which got the attentions of
government. There after government has declared 50 % subsidy on set up of the
cold storage unit & NCDC National Co-operative Development Corporation are
providing financial assistance on very nominal rate. This has encouraged farmers &
entrepreneurs to Set up cold storage unit with modern technology facility. Now
many cold storage units have come into existence.

Example: During the period of Feb to May, When the Pick arrival of Mango
maximum marketing should be done so that the profit can be maximized. The
product which has got place in the international market such products which are
produce seasonal such product can be preserved in cold storage. We can approach
such traders which produce on seasonal basis but are exported throughout the year.

31
We can get business from such trader. With Such trader we can go for Service
Level Agreement and can get business.

Chapter 4

Marketing in Cold Storage Industries

4.1 Introduction to Marketing

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Marketing in a new world

Marketing is the invention of the 20th century, and for last 80 years, its goal has
been to infiltrate consumers’ mind and change their thinking. Since the beginning
marketing’s goal has always been to build the relationship between buyer and
seller. This relationship is more important in this ever dynamic business
environment. Today, technology is playing an important role in building a better
buyer and seller relationship.

Caught in the interlacing Web of interrelationships, traditional marketing is


evanescing for simple reason that its tasks are being automated and assumed by the
mysterious and hidden power of information technology. All traditional marketing
functions are replaced by the technological functions by creating an impression that
marketing has turned out to be a technology.

Origin of Marketing
Marketing as an element of business originated in early 20th century, but its roots
reach back to the industrial revolution. It idealized the importance of relationship
between producer and consumer. McKenna says development of marketing has
gone through three distinct ages viz., the age of reach, age of push and age of total
access.

Age of Reach and Age of Push


No one knows who first coined the term ‘marketing’. In early 20th century,
marketers identified the term with distribution, wholesale and retailing. Later in
1920s Procter and Gamble established ‘Brand management system’, which can be
identified as a period of branding at very same time Edward Bernays was working
on the concept of ‘Public Relation.’ The 1950s has established and popularized the
concept of 4Ps which was followed by segmentation, mass production and mass
marketing.

Role of Technology in Marketing


Technology has always played an important role in the development of marketing.
33
In early 20th century, development of rail-roads and Henry Ford’s invention of
‘model T’ has helped companies reach their customers better and faster. In 1920s,
Radio emerged as the major technological breakthrough to create a perception that
marketing as a function can change consumer behavior. It remained an efficient
broadcast medium for two American generations. Post World War, Television
came in as a new technological development changing the marketing landscape.
Post 1950s, advertisers relied more on television than radio; This new push medium
has consistently influenced viewers with a repetitive, consistent and entertaining
message. This helped marketers change consumer behavior from ‘I need factor’ to
‘I want factor.’

Total Access
Just like an era of reach and push, new technology, new marketplace, new
consumer and competition are once again changing the assumptions of customers
and marketers. Now customers are telling what they want companies to do instead
of companies suggesting their customer what they need. Total Access is not a
broadcast model. Rather, it is an environment where consumer experiences
multiple and simultaneous competitive buying opportunities. Internet is seen as one
of the greatest technological innovation of the last century. It has made availability
of information easier and cheaper. Internet has successfully laid the seeds of Total
Access which flourished with mobile technology. Mobile market has improved
customer’s comfort level and once again changed the customer behavior. These
two technological breakthroughs have not only changed customer behavior but also
changed the way market behaves. It is evident from the changed classification in
era of Total Access. In the era of Total Access, customers can be divided by four
parameters—the information explorers, the information active, the information
followers, and the information passive. Technology has changed at an
unprecedented pace in the past few decades. It has changed business landscape
many a time in last twenty-five years. It has enabled farsighted business to outpace
their competitors by creating new products and services, by managing business

34
process and by operating business more efficiently. Law governing these
technological innovations is also seen as the law of new marketplace.

4.2 Objective of the study

Every business is wired today, marketers and academicians in this increasingly


networked business environment is writing the new rule of marketing. These new
laws of marketplace are playing on important role in developing marketing
strategies.

Branding Lost its Meaning!


The marketing function disappears into a network of relationships and
responsibilities between man and machine throughout the value chain. For
marketers, the end goal changes from creating brand awareness to satisfying
customers. In today’s network economy, brand itself becomes a ‘persistent
presence’ which sustains the customer dialogue whenever the customer chooses.
Branding is all about customer loyalty. It is always seen as a result of customer-
producer relationship. In the era of total access, this relationship is becoming more
transactional than personal. In total access environment, many consumers will
choose a brand for pragmatic reasons rather than emotional. The ever changing
marketplace and shifting consumer loyalty is creating challenges for producers.
Few of the challenges for producers are:

Changing Symbol: Technology has changed the way people perceive things, which
in turn, has changed business practices. Today, ATM has emerged as a symbol of
trust in consumers’ conscious mind replacing old economy bank infrastructure.
Impact of Technology: Building brand in technology business is building alliances
and relationship. It is seen that in technology market, developing brand is all about
developing industry standard.
Hidden Choices: The component of the end product is mostly unknown to the end
consumer. Consumers often do not know with which producer they are dealing
with. Intel and Visa are the diffusion distributors of Dell, Compaq, and Bank of

35
America. The erosion of brands has evolved from technology, social and cultural
influences. An easy access to information and power of choice has converted one-
time “brand loyal” to “brand switcher”. Today, consumers have choice to select
from wide variety of offerings; hence user preferences vary from situation to
situation. In the last two decades, consumer preferences have changed.

Few people confuse preferences with values. Preferences change with time and
vary widely with the changing social and economic context of a particular market.
It changes with changing technology, but values do not. These changing
preferences give marketing a new dimension of mass customization and self
service. The business is looking for lasting market presence and sustaining brand.
There are two keys to it: Point of access and marketing architecture network.

Persistent presence
Market is changing its dimension at the speed of thought. This dynamic change is
changing consumer’s preferences and perceptions. Today, every business has
persistent presence. In fact, in this competitive market, it is a must for the very
survival of any business. Persistent presence is consumers, consistent and reliable
experience with the producer or retailers. A logistical system that focuses on
operational system and communicational system of any company is the backbone
of the persistent presence. Natures of business, market condition, company’s
competitive position are few of the factors which help any company in achieving
persistent presence. It is possible in many ways:
• Presence through digital network e.g., ATM, e-broking
• Physical presence: Location, Access e.g., Starbucks has more than 3,000 points all
over the world.
• Embedded presence e.g., Intel
• Presence through services e.g., E*TRADE, Yahoo!, Citibank

Company can establish persistent presence in many ways. It all depends on the
nature of the business and environment the company is operating in. McKenna
suggests a few key points to establish persistent presence:

36
• Market Architecture Approach to Total Access e.g., Dell, Wal-Mart
• Beef up your customer’s support infrastructure e.g., Coca-Cola
• Think Total Access e.g., AOL as a total Internet venture to AOL as an
entertainment and media company which provides total access option.
• Invest in Time, Money are customer Relationship e.g., CRM initiatives

The Market Architecture


Market architecture is the functional relation of inbound and outbound functions. In
transactional working environment with shortened product life cycle, changing
technology and shifting channels, and increased competition, marketing
architecture has become dynamic. Apart from technological innovations, human
interactions also play the key role in defining marketing architecture.

Shared Creativity: In the B2B market place, to gain market share, companies work
closely with their customers to know their needs and demands better. Few of the
innovations driven by customer needs are Apple II personal computer, Microsoft
MS-DOS.

Keeping Customer Trust: To build or sustain customer trust, marketing architecture


must perform as per acceptation of the customer and respond consistently to their
queries and problems. Business earning customer trust can retain it either by
meeting or exceeding expectations.

Nurturing Change: The Organic Factor- Marketing architecture is dynamic. The


ability to respond to the new customer information and changing business and
social need is yet another important aspect of marketing architecture. IT is playing
an important role in the development of dynamic marketing architecture, and also
in the relationship development between the producer and consumer. In a situation,
when information related service has shifted from retailers or distributors to
producers enterprise architecture approach in marketing becomes important.
Marketing architecture by learning how to better interact with itself in response to
the environment and in connection with the customers’ needs and wants. The

37
important factors for successful marketing architecture are: Customer satisfaction,
developing different channels for different needs, identifying value of connected
partners, and developing the strategic framework.

Total Global Access


Internet has changed the definition of the market infrastructure. Effective
communication and transport methods have narrowed down the gap between the
supply and demand time giving a new dimension to the global marketing. Growth
in market economies, deregulation, privatization, and new global consumers has all
created a new global market.

The focus in this wired world is changing from ‘think globally but act locally’ to
‘act globally connect locally’. World Wide Web helps business in connecting all
channels. It also connects people across border and helps them come closure to
market and increase their interaction. Internet has helped developing total global
access environment. With total global access, it is felt that the world has become
more culturally diverse. In this changed business circumstances, marketing
executives need to take a comprehensive world market view to respond to
increasingly competitive environment where customers have access to all possible
information and are looking for local source and solutions. This global connectivity
has increased with mobile commerce giving birth to a new set of consumers,
‘mobile global consumer’. The global e-commerce is focusing more on establishing
global persistent presence and developing global brands.

Roles and Responsibilities


The rise of Internet and total access has created a self service model for marketing
known as ‘production by masses’. This model works by providing customer with
information database and allowing them to design their expectations consistently
and reliably.

The rise of Internet and total access has made marketing as everyone’s job. It is the
matrix of responsibilities shared by—CEO who is seen as chief strategist, who also

38
work as a chief marketing executive of the organization. He integrates all the
resources that enterprises need to invest and design to build a global infrastructure
strategy.
• CIO is seen as chief total access architect. He possesses required skills, to be the
interface between the customers’ needs and company’s response.
• Director of R&D is seen as the chief novelty officer. Customer preferences
change fast in total access era and it is the duty of the Director, R&D to come up
with innovative products.
• Vice president of operations and logistics helps meet customer delivery
expectations.
• Vice president of marketing takes care of demand and supply factors and other
traditional marketing functions.

Corporate Creativity
Market impatience, competitive intensity, volatile market reaction and high
expectations from customers and investors are few of the factors which have
created competitive environment. In this competitive environment, to gain edge
over other players, companies have to work on corporate creativity. More creative
the company is throughout its entire enterprise; the more successful the company
will be in sustaining the growth.

Marketing Mix

The Marketing Mix model (also known as the 4 P’s) can be used by marketers as a
tool to assist in implementing the Marketing strategy. Marketing managers use this
method to attempt to generate the optimal response in the target market by blending
4 (or 5, or 7) variables in an optimal way. It is important to understand that the
Marketing Mix principles are controllable variables. The MM can be adjusted on a

39
frequent basis to meet the changing needs of the target group and the other
dynamics of the M. environment.

Historically, the thinking was:


a good product will sell itself.
However there are no bad
products anymore in today's
highly competitive markets.
Plus there are many laws Functionality,
giving customers the right to Quality,
return products that he Appearance,
Product
perceives as bad. Therefore the Packaging, Brand,
question on product has Service, Support,
become: does the organization Warranty
create what its intended
customers want? Define the
characteristics of your product
or service that meets the needs
of your customers.
Price How much are the intended List Price,
customers willing to pay? Here Discounts,
we decide on a pricing strategy Financing, Leasing
- do not let it just happen! Options,
Even if you decide not to Allowances,
charge for a service (a loss
leader), you must realize that
this is a conscious decision and
forms part of the pricing
strategy. Although competing
on price is as old as mankind,
the consumer is often still

40
sensitive for price discounts
and special offers. Price has
also an irrational side:
something that is expensive
must be good. Permanently
competing on price is for many
companies not a very sensible
approach.
Available at the right place, at
Locations, Logistics,
the right time, in the right
Channel members,
quantities? Some of the
Channel Motivation,
Place revolutions in business have
Market Coverage,
come about by changing Place.
Service Levels,
Think of the internet and
Internet, Mobile
mobile telephones.
(How) are the chosen target
groups informed or educated
about the organization and its
products? This includes all the
weapons in the marketing
Advertising, Public
armory - advertising, selling,
Relations, Message,
Promotion sales promotions, Public
Direct Sales, Sales,
Relations, etc. While the other
Media, Budget
three P's have lost much of
their meaning in today's
markets, Promotion has
become the most important P
to focus on.

The function of the Marketing Mix model is to help develop a package (mix) that
will not only satisfy the needs of the customers within the target markets, but
simultaneously to maximize the performance of the organization.
41
4.3 Scope of the Study

Every research study has some scope which can be constructive and
accommodating for the industry and as well as for the people. So in this study the
researcher has found some significance of the study. With the study researcher
gains knowledge about the various aspects of food processing industry. The various
products that are produce in the Indian agriculture market are fruits, vegetables and
dry fruits. It highlights on the plight of the Indian food processing industry. It’s
contribution to Indian economy. It brings out role of food processing industry in
saving the food wastage. Through this report researcher has commence with the
cold storage industry in India. It also highlights the economy policy and the
requirement for cold storage industry. It points out the prospect of the cold storage
industry. It gives an idea about the number of the cold storage operating in
Mumbai, Thane and Navi Mumbai region. The various products stored in cold
storage and other details.

It also highlights on the topic of marketing. The role of marketing in a business.


The need of marketing in cold storage industry. Moreover this study provides
information and can be of a great help for an individual if he looking out to start a
new cold storage unit. The information about the capital needed and from which
other institute the fund can be raised is mentioned in this study. Here the researcher
has made use of the observation method in determining the factor that can
contribute to the growth of the business. The need of a SLA (Service Level
Agreement) with a brief overview of SLA has been discussed in the study over
here. Advertising which plays as important in a success of a business has been
mentioned in the study. The medium for advertisement selected has been
newspaper. The merits and demerits of advertising in newspaper have been
discussed here. Advertisement can be effective in a business for its growth.

4.4 Research Methodology:

42
Research can be defined as a scientific and systematic research for pertinent
information on a specific topic. In fact, research is an art of specific investigation.
Research is an activity and as such the term be used in a technical sense. Research
can be stated as the manipulation of things concepts or symbols for the purpose of
generalizing to extend, correct or verify knowledge whether that knowledge aids in
construction of theory or in the practice of an art. Research has its special
significance in solving various operational and planning problems of business and
industry. Research methodology is a way to systematically solve the research
problem. Thus, when we talk about research methodology we not only talk of the
research methods but also consider the logic behind the methods we use in the
contexts of our research study and explain why we are using a particular method or
technique.

The steps involve in the research methodology are

1. Defining the Problem: In defining the problem, the researcher should take into
account the purpose of the study, the relevant background information, the
information needed and how it will be used in decision making. Problem definition
involves discussion with the decision makers, interviews with the industry
experts, analysis of the data
2. Research Design: The research design tells about the mode through which the
entire project is prepared. The research design put down the foundation of
conducting the project. A good research design will ensure that the research project
is conducted effectively and efficiently

3. Formative the data source: It means from where the researcher collect the data.
It can be primary data or the secondary data as both sources are necessary in order
to get the proper result
4. Analyzing the data: After the data collection is over the researcher analyzed the
data and edited them and turned them in the useful tabulations. So, it became useful
in report study

43
5. Interpretation of the data: With the help of analyzed data researcher managed to
prepare project report. The analyzing of data will help the researcher to reach
towards its objectives. The interpretation of the data is required so that for others it
is easy to understand study in simple manner.
6. Report writing: The entire project should be documented in a written report.
This is the final step in preparing the project report. The objective of the report
writing is to report the findings of the study to the respective authorities

The purpose of research

1. Discover answers to questions through the application of scientific procedures.


2. The main aim of research is to find out the truth which is hidden and which has
not been discovered as yet.
3. Research helps us to gain familiarity with a phenomenon or to achieve new
insights into it.
4. To portray accurately the characteristics of a particular individual, situation or a
group.
5. To determine the frequency with which something occurs or with which it is
associated with something else.
6. To test hypothesis of a casual relationship between variables.

The research method used was

1. conclusion oriented research method where after working with the cold storage
unit it was found that how marketing can be a tool to increase the business and
revenue of the firm.
2. The problem was identified, redesigns the enquiry as preceded and was prepared
to conceptualize.
3. Qualitative approach was there for the research purpose as during the summer
internship there was a function of intern’s insights and impressions.
4. The result that would be generated will be either in non-quantitative form or in
the form which are not subject to rigorous quantitative analysis.

44
4.5 Limitation of the Study:

As far as it goes to the limitation of the study, it can said that marketing is more of
practical and less of theoretical aspects. The nature of the market is very volatile. It
keeps on changing and fluctuating. As a marketer what would seem right and
appropriate for me may or may not fit and seem to be appropriate for few. So the
conclusion and the suggestion may or may not be accepted by the end user. Apart
from this, the practice and policy of every organization is different. So, any
conclusion or suggestion may not be accepted in general for other cold storage
industries. The government policy also differs from state to state. All this does
account for the research work, the observation and other.eg: the marketing mix
which is ideally 4p’s at times can be more then 4 or less than four.

Chapter 5

Facts and Finding

After studying the organization function, its requirement to operate, the business
nature and environment there are areas which needs due consideration for
increasing the profitability of the cold storage. As the need of cold storage industry
has been on the rise in the past few years. It can be said that with proper set up and
taking care of all the aspects required for the cold storage industry the revenue of
the organization can be increased. Though the flow of the business is smooth it can
be improved more. There times when the utilization of the cold storage is not upto
100 %. Also there are slacks and lean periods where in traders don’t have stocks.
45
Hence even the cold storage industry does not get orders from the clients. Due to
this the revenue also goes down for some time. In order to see that the revenue is
coming regularly steps has to be taken for it. There also might be a chance where in
there might be new traders but they might not be aware of the presence of the
Sarveshwari Village Industries in the market. It is quite imperative to make your
existence and presence known in the market for the betterment of the organization
from business point of view. In order to have an edge over the competitors the USP
(Unique selling point) of the organizations needs to be emphasized in the market.
This will ultimately help in bringing new clients also having hold over its current
clients.

Since cold storage is a service industry it is essential for the organization to always
provide a superior service to its clients. As the clients are their customers they have
to be at the top most priority. No business can exist or perform better without
serving best to its customer. As quoted by Walt Disney “Do what you do so well
that they will want to see it again and bring their friends.” But the question that
arises would be how it can be done? To this it can be answered by implementing
new methods in the business. At Sarveshwari all the modern technological
machinery are available. The power supply problem which is a problem can be
eliminated. It will be thus beneficial for the cold storage to run its operation
continuously and maintain the temperature for the fruits and vegetables. Thus
constant temperature can be maintained.

Apart from this the flow of revenue being constant it can be worked out by entering
into SLA (Service Level Agreement) with majors clients of the organization. Under
this there will be continuous service provided to the clients. This will be in
applicable even when the demand from the clients is less. As advertisement plays
an important role in creating awareness among people. So we can put up
advertisement both during the pick as well as during the lean period. This might
result in bringing up new clients. There can be a possibility that though there are
many players in the market but a new entrant (Trader) in the market who has less

46
idea about how he can preserve his products from spoilage, the advertisement may
attract him and can approach to Sarveshwari Village Industries.

In the next chapter the facts and findings have been mentioned in brief. The facts
and finding have been generalized and interpreted. Both Service Level Agreement
and advertisement have been covered in brief.

Chapter 6

Analysis & Interpretation

After reviewing the scenario, working of cold storage industry at Sarveshwari


Village Industries (A Nafed Cold Storage), the following were analyzed and
interpreted.

6.1 Service Level Agreement

A Service Level Agreement (SLA) defines the relationship between service


provider and the business customer and/or external customer. An SLA clarifies
the responsibilities between the service provider and the customer and it provides a
47
framework and a common understanding for both parties. An SLA is most
effective when the service provider and the business customer collaborate on what
should be included. Any SLA needs to be agreed upon by both parties. This
becomes a guideline for managing the relationship between the customer and the
Service Provider.

Because a SLA can be used to describe a variety of cold storage services; the
particular elements that are included in an SLA will depend on the circumstances.
A good SLA addresses:

What service(s) are being made available to what customers?

What level of service or quality of service should the customer expect?

What are the costs to provide this level of service?

How will the service be delivered?

How will the service provider monitor or track and report on performance?

When will the SLA be reviewed?

This document describes what must be included in a Service Level Agreement

Who prepares the SLA?

The service provider develops the SLA in collaboration with the business customer

How To write a SLA?

An SLA is not a technical document and should be written in business terms.


Everyone needs to be able to understand it.

Use clear and concise wording and avoid ambiguity.

Avoid legal and technical jargon.

48
Avoid unnecessary technical terminology.

Provide a glossary of terms if necessary.

Have someone independent from the process review the SLA.

Service Level Agreement Contents

What is included in a Service Level Agreement will change depending on the


circumstances and the business. The most important thing to note when creating an
SLA is to keep it simple, measurable and realistic. It is important to understand that
SLAs cannot cover every possible situation that may arise. Listed below are key
sections that should be included in any agreement.

General Overview

Description of Services

Service Performance Level

Service Provider and Customer Responsibilities

Problem Management and Disaster Recovery Process

Periodic Review Process

Termination of Agreement Process

Signatures

General Overview

This is a Service Level Agreement (SLA) between Cold Storage service provider &
Business Customer name. The purpose of this Service Level Agreement (SLA) is to
identify the basic services, and any agreed upon optional services, to be provided
by Cold Storage service provider for Business Customer Name.

49
This SLA covers the period from Date to Date and will be reviewed and revised at
the end of this period.

Include a brief description of what the service or application does.

Description of Services

Describe the service that the provider is promising to the customer.

What systems are supported?

What services are included?

What services are NOT included?

How will service be delivered?

What are the hours of operation (regular business hours and after hours support)?

When will regularly scheduled maintenance be performed?

Service Performance

This section describes how the service provider will monitor or track and report on
performance. The service provider must perform according to predefined and
measurable metrics. Choose metrics that are easily collected. Balance the
importance of a desired metric against its ease of collection. Avoid including an
excessive number of metrics in the SLA that can’t be analyzed in a timely manner.
Any metrics included in a SLA should be capable of being measured on a regular
basis and the SLA should indicate who will provide this information. Some of the
most commonly used metrics include:

SERVICE COSTS

What are the costs to the business customer for the service?

50
Service Provider and Customer Responsibilities

Both the Service Provider and the Customer have responsibilities in support of the
service delivery process. It is important to distinguish between these relationships.

Describe the service provider duties and responsibilities. Examples are:

Meeting response times associated with service related incidents.

Generating service level reports for customer.

Training required staff on appropriate service support tools.

Notifying customers about all scheduled maintenance.

Developing and maintaining system related documentation (this could also be a


customer responsibility).

Managing user accounts.

Describe the customer’s duties and responsibilities. Examples are:

Adhering to any related policies, processes and procedures.

Reporting problems using the problem reporting procedures described in the SLA.

Scheduling in advance all service related requests and other special services with
the Service Provider.

Developing and maintaining system related documentation (this could also be a


service provider responsibility).

Making customer representative(s) available when resolving a service related


incident or request.

Communicating when system testing and/or maintenance may cause problems that
could interfere with standard business functions.

Periodic Review Process


When an SLA is first initiated and the service is just beginning, the SLA should be
reviewed on a monthly basis. These reviews can then be done quarterly, semi-

51
annually or annually after this initial startup period is over. An SLA should be
viewed as a dynamic document and should be periodically reviewed and changed
when the following events occur:

The environment has changed

The client's expectations and/or needs have changed

Workloads have changed

Better metrics, measurement tools and processes have evolved.

An SLA should be reviewed at a minimum once per fiscal year. List who is the
“document owner” and who will facilitate regular reviews of this document.
Contents of this document may be amended as required, provided mutual
agreement is obtained and communicated to all affected parties. The “document
owner” will incorporate all subsequent revisions and obtain mutual agreements /
approvals as required.

Document Owner: Document Owner Name

Review Period: Review Period (e.g. annually or Quarterly)

Next Review Date: Next Review Date

Signatures

The final SLA should contain signatures of appropriate representatives from the
Service Provider and the Customer. The Service Provider representatives would
typically be a CEO or the Proprietor

6.2 Advertisements in Newspaper

Paid-circulation newspapers are a popular advertising medium for most local


businesses. They are the oldest forms of mass media, and they continue to be one of
the largest, as measured by volume of advertising dollars. Industry giants, as well
as the local convenience stores, use newspapers to advertise. Every community has
its own newspaper. There are over 1,600 paid-circulation daily newspapers in
America and several thousand additional local weekly papers as well.
52
Every advertising medium has characteristics that give it natural advantages and
limitations. As you scan your local newspaper(s), you will notice a number of
businesses that advertise on a regular basis. Observe who they are, and how they
advertise their products and services. More than likely, if the advertisements are
repeated, the ads are working.

Consider this media if you are selling to a general market, because newspapers are
generally bought by all segments of the population. Even though the newspaper no
longer enjoys its former role as the almost exclusive source of news, they still
remain a strong factor in their specific sphere of influence.

Advantages of Newspaper Advertising

There are a number of characteristics of paid-circulation newspapers that make


them especially appealing to advertisers:

• Most paid-circulation papers, both daily and


weekly, reach the majority of homes in their primary
city or town.
• Almost every home in the United States receives a newspaper, either at the
newsstand or by home delivery.
• Newspapers permit an advertiser to reach a large number of people within a
specified geographical area.
• The printed advertising message has both permanence and desired obsolescence.
A reader can refer back to, or even clip and save, a particular ad, yet tomorrow’s
edition is new and fresh and as eagerly sought by the same reader.
• The newspaper offers a predictable frequency of publication: once, twice or up
to seven times a week.
• Newspapers have immediacy. You can place an ad on Monday and be getting
results before the week is over. Short deadlines permit quick responses to changing
market conditions.

53
• People expect to find advertising in their newspapers. In fact, many people buy
newspapers just to read the ads from the restaurants, movies and discount stores.
• Reading the newspaper has become a habit for most families. It has something
for everyone.
• You can reach certain segments of your market by placing your ads in different
sections of the paper such as: sports, comics, crosswords, news, classifieds, etc.
• An advertiser has flexibility in terms of ad size and placement. Production
changes can be made quickly, if necessary, a new insert can be added on short
notice.
• Advertisements can be examined at leisure. Exposure is not limited, so readers
can take their time reading the messages.
• It offers a great variety of ad sizes. If you don’t have a large budget, you can still
run a series of small ads.
• Many options are available. Copy alone; copy with graphics; black and white; or
full color.
• Newspaper supplements often feature certain subjects that readers pull out and
save.

Disadvantages of Newspaper Advertising

Advertising in the newspaper is not without a few inherent disadvantages, such as:

• Any given advertising message must compete for the reader’s attention. The
paper may contain hundreds of ads, as well as dozens of articles and features for
the reader to wade through. If the total time spent scanning a newspaper is only 20
minutes, your ad may not be noticed by a significant number of people.
• You have no assurance that every person who receives the newspaper will read
your ad. They may not read the section you advertised in, or they may simply have
skipped the page because it contained little or nothing else of interest.
• It has a relatively short life span (newspapers are typically read once, then
discarded), thus requiring multiple insertions.

54
Just as with any advertising method, weigh the advantages and disadvantages
before deciding where to spend, and we will make the most of your advertising
dollars.

Chapter 7

Conclusion & Suggestions

In this last chapter the following are conclusions and suggestions.

7.1 Conclusion:

Marketing aims at meetings the needs of the customers. It helps in strengthening


the business. With proper marketing a business can reach at the pinnacle. Here in
this summer internship project it can be concluded that marketing is more of the
practical aspects coupled with the theoretical knowledge. Cold storage industry is
indeed a sunrise industry with tremendous potential. It will further contribute to the
Indian economy and will play a vital role in prevention of food wastage and

55
spoilage. There are times when India needs to import food grains in spite of good
production. This can be prevented only after setting up adequate cold storage unit.
Both Government and Private entrepreneurs should work towards this.

The revenue of the Sarveshwari Village Industries (Nafed Cold Storage) can be
increase by improving few facilities like continuous supply of electricity. Proper
care and maintenance of the machinery needs to be taken. The supervision of the
temperature for the products stored is also important. Service Level Agreement can
help in getting revenues from the clients. The service standard of the firm should be
at its best as it is the key to success. In order to create awareness about the industry
in the market advertisement can be done.

7. 2 Suggestions:

The following points have been suggested

1. Sarveshwari Village Industries (Nafed Cold Storage) can opt for Service Level
Agreement (SLA) with its major clients to enable the continuous flow of revenue.
It will also lead in improvising of it service standards.

2. Sarveshwari Village Industries (Nafed Cold Storage) can go for advertisements


in the newspaper during both the Pick and slack period. It can be vital in increasing
the business as awareness and the presence of the unit will be made in the market.

3. For continuous power supply Sarveshwari Village Industries (Nafed Cold


Storage) can go for generator service.

56
Bibliography:

Books: Research Methodology Methods and techniques by C.R. Kothari

Indian Food Processing Industry: Some Perspectives by Bala Krishna A V,


Radha Krishna G

Journals: APR Project Consultants. Pune

Newspaper: Nav Bharat Times, 24 july 2009

57
Websites

http://www.google.co.in

http://www.valuebasedmanagement.net/methods_marketing_mix.htm
l

http://www.websitemarketingplan.com/small_business/newspaper.ht
m

http://www.releasemyad.com/rates_offer.php

58
ANNEXURE

Annexure 1: Cold Storage Data of Various Fruits and Vegetables

Annexure 2: Cold Storage Data on few products

Annexure 3: List of Cold Storage Navi Mumbai

Annexure 4: List of Cold Storage Mumbai

Annexure 5: Information about Existing Cold Stores in Mumbai, Thane and Navi
Mumbai areas

Annexure 6: Commodities stored in Cold Stores in Mumbai Region

59

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