Taran Preet Singh E32 Summer Project Channel Sales Strategies.docx

SUMMER INTERNSHIP REPORT SUBMITTED TOWARDS THE PARTIAL FULFILLMENT OF UNDERGRADUATE DEGREE IN BUSINESS ADMINISTRATION

TOPIC-CHANNEL SALES STRATEGIES OF ADHESIVE TAPE MERKET WITH REFERENCE TO PALAK TAPES PVT. LTD.

Faculty Guide-Submitted by-Ms Mona ChaudharyTARAN PREET SINGHBBA GEN (2013-2016)Enrolment No. - A3906413079Industry Guide-Mr Sarabjit SinghAMITY SCHOOL OF BUSINESS, NOIDAAMITY UNIVERSITY UTTAR PRADESH

DECLARATION

I, Taran Preet Singh (enrolment no-A3906413079) student of Bachelor of Business Administration (BBA) 2013-2016 from Amity School of Business (ASB), Amity University Uttar Pradesh hereby declare that I have completed Summer Internship from Palak Tapes Pvt. Ltd., Surajpur Industrial Area, Greater Noida on the topic Channel Sales Strategies of Adhesive tape market with reference to Palak Tapes Pvt. Ltd. as part of the course requirement.

I further declare that the information presented in this summer project report is true and original to the best of my knowledge.

Date: 6th July 2015Taran Preet SinghEnrol. No: A3906413079BBA (Gen.) 2013-2016Place: Noida

CERTIFICATE

This is to certify that Mr Taran Preet Singh a student of under graduate degree in Bachelor of Business Administration (BBA-General) 2013-2016 Amity School of Business, Noida has worked under the able guidance and supervision of his faculty guide Ms Mona Chaudhary and his Industrial Guide Mr Sarabjit Singh.

This summer project report has the requisite standard for the partial fulfilment of the Under Graduate Degree in Business Administration. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

I am aware that in case of non-compliance, Amity School of Business is entitled to cancel the report.

(Signature of the student)Taran Preet SinghEnrol. No: A3906413079BBA (Gen.) 2013-2016

Signature of Project Coordinator Signature of Faculty Guide Ms Mona Chaudhary

CERTIFICATE FROM THE COMPANY(Will receive on the submission of the original report) Expected date- 24/07/2015

ACKNOWLEDGEMENT

I would like to take this opportunity to thank and express my deep gratitude to my faculty Guide Ms Mona Chaudhary and my Industrial Guide Mr Sarabjit Singh. I thank them for providing their valuable guidance at all stage of the project, their supportive and positive attitude, their advice and encouragement, due to which I was able to complete my project.

I would like to thank Mr Sarabjit Singh for believing in me and providing me the opportunity to work with Palak Tapes Pvt. Ltd. I learned a lot.

I would like to appreciate the entire staff of Palak Tapes Pvt. Ltd. for their support and assistance during the completion of my summer internship. This summer internship report is made possible through the help, guidance, support and constant encouragement of my Faculty Guide Ms Mona Chaudhary and my industry guide Mr Sarabjit Singh.

Taran Preet SinghAmity School of BusinessNoidaName of the Student

Signature

TABLE OF CONTENTS

Chapter No.ContentsPage No.

1Executive Summary7

2Introduction i) Objectives8

3Industry Profilei) Major Companies12

4Company Profile16

5Research Methodology 21

6i) What is Channel Sales?ii) What are the various Channel Sales Strategies adopted by Palak Tapes Pvt. Ltd.25

7Issues and Challenges facing the company34

8Recommendations and Suggestions 35

9Conclusion36

10Bibliography37

EXECUTIVE SUMMARY

This summer internship report include the company profile of Palak Tapes Pvt. Ltd. , the products it offers and the various channel sales strategies used by them in order to reduce the risk and cost. The project also focuses on the current scenario of the adhesive tape market in India. Through this internship report we will understand the channel sales strategies of an adhesive tape market w.r.t. Palak Tapes Pvt. Ltd.. This report is generated during the 3rd year Summer Internship course. The primary objectives of this summer internship report is to understand the channel sales strategy used by an adhesive tape market with reference to M/S Palak Tapes Pvt. Ltd. The basic idea behind choosing an adhesive tape company is the huge worldwide demand of an adhesive tape in the market. China and USA are considered to be the largest producer of adhesive tapes. And there is a huge scope for India as well. Adhesive Tapes are widely used for packaging, labelling, sealing, stationary, electrical purpose, etc. There are variety of adhesive tapes in the marketing ranging from BOPP tapes to masking tapes/ floor marking tapes/ PVC tapes/ double sided Foam tape, etc. And the most important thing is that these pressure sensitive tapes are environmental friendly. The BOPP self-adhesive tapes are used by each and every industry for the purpose of packaging. Product manufacturers and service providers face a number ofchannel options. Due to which a proper channel sales strategy is required. A channel strategy is a vendor's plan for moving a product or a service through the chain of commerce to the end customer. Palak Tapes Pvt. Ltd. which is a manufacturer and distributer of BOPP Self-adhesive tapes uses direct-channel strategy. They have procured agents, sales & marketing representatives who are held responsible for the distribution of the processed order. The goods are processed as per the requirement of clients under the special care of supervisors. The sales personnel remains in contact with the commercial vehicle drivers until the right order is delivered to the right place in the right time.

INTRODUCTION

The Objectives of my project are:1) To understand Adhesive Tape Market of India2) To understand-what is Channel Sales Strategies and its needs3) To determine the channel Sales Strategies used by an adhesive tape Company.

About Adhesive Tape market:Adhesive Tapes are popularly used for packaging, sealing, labelling, stationery, electrical purpose, etc. Each and every company uses the BOPP Adhesive tapes for packaging purposes. These tapes are based on many kinds of pressure sensitive adhesives where in adhesive is applied on one side. They can be easily put on any surface very conveniently by applying slight pressure either mechanically or manually. Each and every industry will come across the adhesive tapes for the purpose of packaging. So the major part of the application of the adhesive tapes is occupied by the packaging industry and the other applications of these adhesive tapes are stationery and households.World Bank comments on the Indian economy, Indian PM Mr Narendra Modis economic reforms should help in pushing GDP growth in creating Fiscal space and support for accelerating growth. Global Demand for Indian Products is rising. A re-bounce in Domestic Investment and Pick up in Manufacturing Activity will help India to be on fast tract for Economic Growth. It means that Industrial Production in India will increase and its simple that, Adhesive bonding is a most economical and essential component now a days. Bi-axially Oriented Polypropylene(BOPP) pressure sensitive adhesive tapes has excellent market potential. At present there are many units manufacturing BOPP adhesive tape. This is a highly competitive commercial product, and it has been assessed that there will be a tremendous demand of the product in the future.

About Palak Tapes Pvt Ltd.Palak Tapes Pvt. Ltd. is an ISO 9001:2008 certified private limited company dealing in manufacturing and distribution of all kinds of BOPP (Bi-axially Oriented Polypropylene) Self Adhesive Tapes since last 15 years. The Company is located at F-81 Site B Surajpur Industrial Area, Greater Noida, 201306, Uttar Pradesh by the name of Palak Tapes Pvt. Ltd. They market BOPP and other Self Adhesive tape under the brand name of PALAK. The company follows Business to Business (B2B) Model since the overall quantity ordered in B2B is much higher than the quantity ordered in B2C Model. The company is also registered on IndiaMART to trade with other suppliers or exporters and all the products are listed there. Palak Tapes offers customized tapes on the basis of the requirement from the client like the product type (Printed tape, Masking Tape, Floor marking Tapes, Plain Tapes), Product colour, tape width size, length, thickness, etc.Major Competitors in the Market:1. Newpack Plastics Pvt. Ltd. (Classic Self Adhesive Tapes)2. Khushi Enterprises3. Packman Packaging Pvt. Ltd.4. AOV International5. Tirupati Industries, etc.

Channel Sales-Product manufacturers and service providers face a number ofchannel options. The simplest approach is the directchannelin which the vendor sells directly to the customer. The vendor may maintain its own salesforce to close deals with customers or sell its products or services through an e-commerce website.So we can say that channel Sales is amethodofdistributionused by abusinesstosellitsproducts, usually by dividing itssales forceintogroupsthat focus on differentsellingconduits. For example, acompanymight implementa channelsales strategyto sell its productviaan inhousesales force,dealers,retailersor bydirect marketing.

Channel Strategy:A channel strategy is a vendor's plan for moving a product or a service through the chain of commerce to the end customer. A vendor may embrace a direct or indirect sales channel or a combination of the two. As in Direct sales channel, the vendor may maintain its own sales force to close deals with customers or sell its products or services through ane-commercewebsite. Direct selling via catalogue represents another possibility, although this business has been largely subsumed by e-commerce. Vendors can also pursue sales via indirect channels involving one or more intermediaries. Indirect sales models include retail, which can involve selling through a brick-and-mortar business or an onlinee-tailingcompany. In addition, vendors can sell throughvalue-added resellers(VARs), companies that bundle a vendor's product or service with other products and services to provide an overarching solution for customers. The vendor-to-VAR-to-customer channel is sometimes referred to as a one-tierdistributionstrategy. In two-tier distribution, the vendor sells to adistributor, which, in turn, provides the vendor's products and services to a network of VARs.

Channel Sales Strategy at Palak Tapes Pvt. Ltd.Palak Tapes is not only registered on IndiaMART.com but also have procured agents, sales & marketing representatives, they strive hard to fulfil exact requirement of clients within stipulated time frame. Palak Tapes Pvt. Ltd. usually uses direct marketing strategy by making their sales personnel interact with different clients and vendors. The sales people remind the existing clients about the order which they might want and also interact with new vendors to tell them about the company, price quotations and to distribute sample to earn an order. The sales personnel hired by Palak Tapes Pvt. Ltd. are held responsible for the distribution of the processed order. They remains in contact with the commercial vehicle drivers until the right order is delivered to the right place in the right time. It is said that a channel sales strategy can help an organization to increase its total profits for the business.

INDUSTRY PROFILEADHESIVE TAPE INDUSTRY

The US is the largest market for self-adhesive tapes, packaging tapes and carton-sealing tapes, accounting for 20 per cent of global demand. But its market share is expected to decline as consumption in developing countries grows. In fact, China is expected to be the largest global consumer of self-adhesive tapes in another five years.Adhesive tapes seem to have become especially popular with the packaging industry. Two-thirds of the self-adhesive tape market is accounted for by corrugated carton-sealing tapes, and its share will only grow as the world economy surges forward, and as developing countries rely more and more on these tapes for their packaging needs. The growth prospects for specialty tapes double-sided, adhesive transfer, etc. also look pretty good. They're becoming indispensable in growth industries like electronics and telecommunications.The future for adhesive tapes looks bright in India as well. As companies look beyond traditional forms of packaging and adhesive tape manufacturers as they launch more and more innovative packaging tapes and solutions, the demand for adhesive tapes will also pick up. It looks as though good times are ahead for adhesive tape manufacturers.

Packaging in India is an Rs.11500 crores industry and growing at the rate of 18 per cent annually. The global market for packaging is US $900 billion and Indias share is only US $3 billion, but while the per capita expenditure on packaging in the US is a whopping US $125, it is only $6.5 in India. Therefore, there is a huge potential for growth in the Indian packaging industry. The packaging industry in India, which started on a low ebb in the 1950s has grown slowly and steadily in both quality and quantity. The 70s and 80s witnessed a remarkable change in materials as well as machinery. This has not only given a face-lift to the industry but also opened it up for innovations. In this period, the industry by and large, depended on domestic resources for materials as well as machinery. This was due to various restrictions on imports. Around the mid 90s, liberalisation opened the industry further and it began to reflect in the changes in consumers consumption pattern.

PRODUCT USES: These tapes are used in electrical insulation purpose, in packaging, sealing and a various other general uses. These tapes are also used for general labelling with printing.

MARKET POTENTIAL: The BOPP Adhesive Tapes are used for packaging. It is consumed daily in large quantities by all industrial and commercial organisations. From packing courier covers and bags to packing of pharmaceutical cartons, everywhere, the self-adhesive tapes are consumed. The consumption increases in line with the improved standard of living and business activity in the society. Therefore the consumption of this product is bound to increase further.

MARKET ENVIRONMENT: Pricing trendsPricing is dependent upon a number of influencing factors, of which Fredonia mentions seven:1. Raw materials, 2. Labour, 3. Production equipment, 4. Environmental compliance, 5. Energy,6. Containers, and7. Transportation. Among the global regions, price variances are huge, ranging from $1 per square metre for commodity plastic tapes used in undemanding applications, to $40 per square metre for specialised industrial applications. The average selling price of $1 per square metre in 2013 is set to climb due to the increase of raw materials costs affected by rising oil prices through 2018.

Tape backing materials: Demand overviewThere are 3 types of backing which comprise 90% of the European market: polypropylene (PP), paper, and polyvinyl chloride (PVC). The demand for backing materials will increase with the predicted expansion of the global sales volume of the adhesive tape market from 39.3 billion square metres in 2013 to 50.15 billion square metres in 2018. As the market size grows, the split between the backing materials categories will remain the same. This is why most companies are choosing to maintain the same levels of investment.Polypropylene:Polypropylene accounted for 63% of total adhesive tape in 2013 and is expected to grow.PaperAll global regions will expand in this business segment. Masking tapes will drive this growth, even though they are not utilised in growing markets such as electronics and industrial bonding. As paper is recyclable and repulpable, what will also drive growth in this category is the trend toward using more environmentally friendly products. Polyvinyl chloridePVC is a smaller business segment. China has invested more in Polyvinyl chloride (PVC) tapes and they are considered to be largest exporter of PVC tapes.

Plant & Machinery The plant and machinery required for manufacturing BOPP Self-adhesive tapes are the following: 1. Coating machine 40 (1000 mm) 2. 1000 mm slitter turret machine with accessories 3. Automatic core cutting machine 4. Baby slitter 6 (150 mm) 5. Salvage rewinding machine (Doctor Winder)

Manufacturing Process: The BOPP roll is loaded in the coating machine and adhesive applied on one side. The coated roll is loaded in the slitting machine and the slit tapes wound in the paper core of required width automatically. The paper core of required width is obtained from the automatic core cutting machine by cutting from the long paper core. The process of manufacturing Adhesive plastic tapes can be seen in the following process flow diagram:

Major Companies Some of the major self-adhesive tapes companies operating in India are:-1. Palak Tapes Pvt. Ltd.2. Plastics Pvt. Ltd. (Classic Self Adhesive Tapes)3. Khushi Enterprises4. Packman Packaging Pvt. Ltd.5. AOV International6. Tirupati Industries, etc.7. PowerBond8. Ajit Polymers9. Pidilite10. Anchor, etc.

COMPANY PROFILEPALAK TAPES PVT. LTD.

Company Name: M/S PALAK TAPES PRIVATE LIMITEDCompany Address: F-81, Site-B, Surajpur Industrial Area, Greater Noida-201306, Uttar Pradesh, India.Email: [email protected], [email protected], [email protected] Contact No.: +91-9811267933, +91-9810870420Founded On: 17th May 2000Founded By: Mr. Sarabjit Singh and Mr. Balbir SinghNature of Business: Manufacturer and Supplier of Self Adhesive TapesOwnership Type : Private Limited CompanyNumber of Employees: 30-60Company USP: Large Product Line, Experienced R&D Department, Large Production Capacity and provide Customized Solutions, etc.Shipment Mode: By Road, By Sea, By Cargo.Company Objectives: 1. customer satisfaction, 2. To provide better service at reasonable price, 3. to offer perfect sealing and dustproof packaging tapes.Online Existence: http://palaktapes.com/, http://www.indiamart.com/palaktapes/,https://www.facebook.com/Palaktapes.

Palak Tapes Pvt. Ltd. is a private limited company dealing in manufacturing and distribution of all kinds of BOPP (Bi-axially Oriented Polypropylene) Self Adhesive Tapes since last 15 years. The Company was founded on 17th May 2000. The Company is an ISO 9001:2008 certified company located at F-81 Site B Surajpur Industrial Area, Greater Noida, 201306, Uttar Pradesh by the name of Palak Tapes Pvt. Ltd. They market BOPP and other Self Adhesive tape under the brand name of PALAK. The self-adhesive tapes offered by them are manufactured in a modern plant, where they have hi-tech machines for printing, coating and cutting or repacking the entire roll of tapes and the process convert it into the finished product i.e. high quality tapes to satisfy consumer needs. This whole process is managed by a team of skilled, specialized and dedicated technocrats. The brand specifically try to ensure excellent quality for sealing and dust-proof packaging. And the motto of the brand is customer satisfaction by providing them better product and services at reasonable price. The company follows Business to Business (B2B) Model since the overall quantity ordered in B2B is much higher than the quantity ordered in B2C Model in case of adhesive tape market. The company is also registered on IndiaMART to trade with other suppliers or exporters and all the products are listed there. Some products offered by Palak Tapes are:a) All colours of BOPP Self Adhesive Tapesb) Printed Tapesc) Foam Tapesd) Surface Protection Tapese) Paper Tapesf) Aluminium Foil Tapeg) Double Sided Tapesh) Masking Tapesi) Floor Marking Tapesj) Filament Tapesk) Electrical Tapesl) PVC Tapes

Some of the uses of these tapes could be:a) Medium and Heavy-duty carton dust-proof sealing (Packaging).b) Stationery Purposec) General Repair Purposed) Floor Markinge) Electrical purposes- covering electrical wires, etc.f) Decorations at home or office.

The clients put a purchase order in the email id of M/S Palak Tapes Pvt. Ltd. as per their requirement by specifying the type, colour, quantity, width size, length and thickness of the tape. The Company conforms the order by contacting the client and agreeing to a standardized price quotation. After accepting the P.O. (purchase order) the company takes a maximum of two days in manufacturing/ procuring and processing the order and deliver it to the address provided by the client. The both parties exchange information (or documents like P.O.) via their email ids. This is the picture which they use in footer of the Microsoft outlook while sending P.O. or Quotations Via the company's email id.

Dimensions of the tapes offered by Palak Tapes Pvt. Ltd.:Width Size12mm, 24mm, 30mm, 36mm, 48mm, 60mm, 72mm, 96m, 144mm, 288mm, etc.

Length65, 100, 130, 650, 1000 meters, etc.

Thickness42, 45, 50, 55 microns, etc.

The company has a customer base catering to a vast segment of industry including Automobile, Electronics, Beverages, Food Industries, Medicine, etc. Some of the clients of Palak Tapes are:1. Haldiram Snacks Pvt Ltd2. RituWears3. Varun Beverages Ltd. (PepsiCo)4. Uflex Ltd.5. Intex, etc.

Some of the competitors of M/S Palak Tapes Pvt Ltd are:6. Newpack Plastics Pvt. Ltd. (Classic Self Adhesive Tapes)7. Khushi Enterprises8. Packman Packaging Pvt. Ltd.9. AOV International10. Tirupati Industries, etc.

With the support of the companys highly experienced and adept professionals, Palak Tapes have gained strong position in the market. The company have procured agents, production managers, quality controllers, warehousing & packaging personnel, sales & marketing representatives, they strive hard to fulfil exact requirement of clients within stipulated time frame. Apart from this, the company organize important training sessions, seminars and learning programs for its professionals in order to enhance their skills and market understanding. As an intern I have learnt a lot. The organization is supported by technologically advanced infrastructural base that spreads over a vast area for manufacturing flawless products. Company have divided its infrastructural base into various departments such as procurement, production, quality control, warehousing & packaging and sales & marketing that are handled by adroit professionals. The professionals working with Palak Tapes are hired after evaluating their knowledge, past experience and skills. Additionally, the production department is well-equipped with advanced machinery in order to carry out hassle-free production process.

RESEARCH METHODOLOGY

Research is simply a systematic and refined technique of thinking, employing specialized tools, instruments, and procedures in order to obtain a more adequate solution of a problem that would be possible under ordinary means. It starts with a problem, collects data or facts, analysis these critically and reaches decisions based on the actual evidence. It evolves original work instead of mere exercise of personal. It evolves from a genuine desire to know rather than a desire to prove something. It is quantitative, seeking to know not only what but how much, and measurement is therefore, a central feature of it.

TYPE OF RESEARCH:

The present project is Descriptive in nature, the data based on facts collected with the help of the tools and presented in the form of text, flow chart and some diagrams, describing the channel sales strategies of an adhesive tape market. In this term paper we deal with what are the various channel sales strategy used by Palak Tapes Pvt. Ltd.?

MODE OF DATA COLLECTION:In this report both PRIMARY DATA and SECONDARY DATA are used.Secondary datais any data or information which has already been collected or stored for a purpose other than your current research project/work but has some relevance and utility for your research work. On the other hand Primary Data is any data which is collected by researcher himself through his own observations in the organization or getting questionnaires filled and utilizing this for his own research. I have observed the working of the organization and the channel sales strategies used by them. This research has been possible through my observation and interaction with supervisors, my industry guide, first-line managers and the whole team of Palak Tapes Pvt. Ltd.

TOOL OF DATA COLLECTION USED:The basic tools used for the study are:1. Observations: - Inmarketing,observational research(or field research) is a social research technique that involves the direct observation of phenomena in their natural setting.Observational research is a type of correlational (i.e., non-experimental) research in which a researcher observes ongoing behaviour. There are a variety of types of observational research. I have observed the channel through which the company transfer the finished goods to its clients.

2. Talking with Organization Staff: - I have interacted with my Industry Guide Mr Sarabjit Singh, Supervisors, Marketing and Sales personnel, First-line managers, etc. during the completion of this summer internship project report.

3. Internet: -Internet is considered to be the best source of knowledge. Google is the search engine which links different websites to a common platform to make research work easier and sometimes reliable. I used different websites except Google like the official Indian websites of Palak Tapes Pvt. Ltd. http://www.palaktapes.com , IndiaMART.com, and the Facebook page of Palak Tapes. 4. Journals 5. Articles6. Case Study

7. Research Papers: -Online published research papers, journals, articles and case studies are the best way to understand the topic and its practical implication in the organization or the industry.

8. Flow Charts:-I have used a few flow charts to understand the process of manufacturing self-adhesive tapes as the process involves a lot of machinery and skills and is quite complicated. Flow charts helps to present complex data in a simpler and understanding way.

9. Chapterisation: -The chapterisation has been done according to the design of the study and it has been carefully divided into ten chapter, which are as follows:

i. The first chapter gives an executive summary of this project.

ii. The second chapter is divided in two parts 2.1 and 2.2. a) 2.1 describes the objectives of the topicb) 2.2 is the introduction of the project.

iii. The third Chapter describes industry profile of an adhesive tape market.

iv. Forth chapter describes the company profile of Palak Tapes Pvt. Ltd.

v. The fifth chapter describes the research methodology, the types of research conducted, the source of data collection, and techniques used in the analysis.

vi. The sixth chapter describes:a. What is Channel Sales?b. What are the various Channel Sales Strategies adopted by Palak Tapes Pvt. Ltd.

vii. The seventh chapter describes the issues and challenges faced by the company.

viii. The eight chapter states the various Recommendations and Suggestions for the company.

ix. The Ninth chapter displays the conclusion/findings of the report.

x. The tenth chapter contain the bibliography of the project.

CHANNEL SALES STRATEGY

What is Channel Sales? Channel Sales is amethodofdistributionused by abusinesstosellitsproducts, usually by dividing itssales forceintogroupsthat focus on differentsellingconduits. For example, acompanymight implementa channelsales strategyto sell its productviaan inhousesales force,dealers,retailersor bydirect marketing.

Given the right channel, the right people, good product/market fit, and a lot of patience, the channel sales model can be one of the most profitable business models.Channel sales can be used to create extremely successful business models. The channel gives powerful leverage to an organization, adding additional sales resources, and taking advantage of existing customer relationships that the channel partners bring to the table.Why Use Channels? Accelerate sales growth. Extend your marketing: Reach buyers or segments not adequately served online or by your sales reps. Make it more convenient for your customers to purchase (and to remove obstacles). Cost effective alternative to hiring your own sales force. To enter international markets.

The things to watch out for if you are planning to build a business around a channel sales model are the following: You should recognize that you will need to figure out the sales model yourselves before you are ready to start to teach channel partners how to replicate that model. In other words, you will need to make your first sales directly using your own direct sales efforts (possibly in association with a channel partner). This will help you understand if your product/market fit is right, who you need to involve in the sales process, whether the messaging is resonating, etc. Channel sales usually take a long time to get off the ground. The reason for this is that a reseller has a different set of priorities to yours. You have a great sense of start-up urgency, have total focus only on your product, and are willing to work long hours. They are usually focused on other products and deals that are paying the bills, and will usually need a lot of work to convince them that they will get a return on time invested in your product. Resellers often are lazy, and dont want to do the work to create demand for a new product. They usually prefer to sell products where the demand already exists. This means you should still expect to create demand using your own marketing efforts. Ideally you should be in a position to feed those leads, or better still, deals that are close to done in the early days. Resellers need education on how to sell,handle objections, differentiate your product from the competition, etc. This requires work by your channel sales team. But they will need backup from channel marketing people whose job it will be to create the appropriate training materials, programs, tests, etc. Resellers are notoriously bad at marketing. So in addition to your own demand creation marketing efforts, you are likely to want your channel marketing staff to create materials and programs that can be used by the channel to market to their own customers. They will then need to push the resellers into committing to running events, webinars, etc. using those materials. Check to make sure there is a channel that sells similar products to a similar buyer. For example, there is now a nice ready-made channel that sells VMWare products to IT, and that channel can be used to sell a variety of add-on products. However if there is no such channel in place, you will have a significant uphill slog to create a channel that is suitable for your own needs. If you decide to use a channel sales model, be prepared to commit to it entirely, and not take orders directly (unless there are some very clear rules). If the channel sees you competing against them, it will turn them off, and lessen their commitment to your products. It will also lead to conflicts in your own sales organization who will want the short term gain of greater commission from taking deals directly. While this might mean more revenue for you in the short term, it is not going to help you build the leverage of the channel, where once they have seen how to make money from one deal, they will replicate that with other customers of theirs. Dont expect sales execs that are used to direct sales to transition easily to channel sales. There is a different mind-set involved in committing to the long term effort of building a channel. Sales people used to direct sales prefer more control, and the faster results that come from doing things directly with the customer. Channel sales people know that with patience they can get greater leverage than doing things themselves.

What is channel Strategy?

A channel strategy is a vendor's plan for moving a product or a service through the chain of commerce to the end customer.Product manufacturers and service providers face a number of channel options. The simplest approach is the direct channel in which the vendor sells directly to the customer. The vendor may maintain its own sales force to close deals with customers or sell its products or services through ane-commercewebsite. Direct selling via catalogue represents another possibility, although this business has been largely subsumed by e-commerce.

Vendors can also pursue sales via indirect channels involving one or more intermediaries. Indirect sales models include retail, which can involve selling through a brick-and-mortar business or an onlinee-tailingcompany. In addition, vendors can sell throughvalue-added resellers(VARs), companies that bundle a vendor's product or service with other products and services to provide an overarching solution for customers. The vendor-to-VAR-to-customer channel is sometimes referred to as a one-tier distributionstrategy. In two-tier distribution, the vendor sells to a distributor, which, in turn, provides the vendor's products and services to a network of VARs.In addition to retailers, VARs and distributors, managed service providers (MSPs),consultants, systems integrators (SIs), original equipment manufacturers (OEMs),ISVs,wholesalersand distributors may also serve as channel partners. A vendor pursuing indirect channels will often create a partner programto manage relationships with its business allies.When devising a channel strategy, a vendor must make decisions about which channel or channels to use and the types of partners it will seek to cultivate.The appropriate strategy can vary from one product or service to another.A vendor that builds a channel strategy around both direct and indirect sales channels must take care to avoidchannel conflict. Channel partners will soon become disgruntled if a vendor's direct sales force competes with them for customer business. Thus, a channel strategy may involve market segmentation. For example, a vendor could target only large enterprises with its direct sales force, while reserving small and mid-sized businesses for its channel partners.

CHANNEL STRATEGY SWOT ANALYSIS

Channel Sales Strategy at Palak Tapes Pvt. Ltd.What are the various Channel Sales Strategies adopted by Palak Tapes Pvt. Ltd.?Palak Tapes is not only registered at online business directory IndiaMART.com but also have procured agents, sales & marketing representatives, they strive hard to fulfil exact requirement of clients within stipulated time frame. Palak Tapes Pvt. Ltd. usually uses direct marketing strategy by making their sales personnel interact with different clients and vendors. The sales people remind the existing clients about the order which they might want and also interact with new vendors to tell them about the company, price quotations and to distribute sample to earn an order. The managers of the company are 24x7 available at IndiaMART from where they get to know about the companies who want adhesive tapes. They interact with the managers of those companies and try to get an order. The sales personnel hired by Palak Tapes Pvt. Ltd. are held responsible for the distribution of the processed order. The goods are processed as per the requirement of clients under the special care of supervisors. The sales personnel remains in contact with the commercial vehicle drivers until the right order is delivered to the right place in the right time. It is said that a channel sales strategy can help an organization to increase its total profits for the business. A direct channel of distribution describes a situation in which the manufacturer (like PALAK TAPES PVT. LTD.) sells a product directly to a consumer or client without the help of intermediaries. A direct chain of distribution may involve face-to-face sales, computer sales or mail order but does not involve any form of distributor other than the original manufacturer. Chains of distribution that involve non-affiliated retailers or wholesalers cannot be described as direct channels of distribution and are instead classified as indirect chains of distribution.Examples:Although major retailers and indirect channels of distribution are ubiquitous in the United States, there are many examples of direct distribution in our economy. Farmers who sell produce on site or at farmers markets use a direct channel of distribution. A company that produces its own products and sells them directly to the consumer in its own retail stores is using a direct chain of distribution. Producers frequently connect directly to consumers through company websites or assisted marketing systems such as eBay.

Advantages Using a direct channel of distribution to connect consumers with your product, especially a Web-based channel, can have several benefits. Most importantly, web-based selling has low overhead and gives your product a potentially global reach. Because no intermediaries share the profits, most direct distribution channels tend to have higher rates of profit than indirect distribution channels. Direct distribution via the Internet is convenient for customers and available 24 hours a day. Lastly, many customers appreciate the opportunity to give profits directly to producers and artists.

Working at Palak Tapes Pvt. Ltd.The Company uses to transfer its product through roadways and as well as railways. An auto-company was appointed who daily sends its two medium size commercial vehicles in the morning. The first-line managers were responsible was transferring the finish goods to the auto along with their respected invoices signed by the Director and other required documents. The operations manager of the company, Mr. Sarabjit Singh, used to instruct the auto driver about the routes of place where products were to be delivered. The domestic orders were sent via autos which cover NCR and the orders from outside NCR were courier by the company. Majority of the Purchase orders come from NCR- Noida, Greater Noida, Delhi, etc. After that the autos uses to leave and the managers focus was again shifted to the product planning, where they plan about the products that they have to deliver the next day. After making the production plan, it was sent to first-line manager who used to work on the same. The marketing people were busy in talking with customers about orders and payment. The Field people used to go and collect payments in form of cheques and also in giving free samples to industries or company who require tapes for packaging or any other purposes. The company has an agreement with suppliers who used to supply the raw-material like adhesive, polypropylene film, etc. at the agreed price till the end of the agreement. Adhesive Supplier uses to supply a tank truck. And the BOPP film was supplied in a huge roll and were kept in the inventory hall of the company and were taken out when required. The Raw material were converted into self-Adhesive BOPP tapes by a step by step process. The polypropylene film were first printed using huge printing cylinders installed on a machine, then the huge printed roll of printed polypropylene roll was placed on a huge machinery where it was coated with adhesive mixed with the desired colour. After being coated the huge roll was transferred to the next machinery where it was rolled into roll as per the specified length and width of the tape. After this the finished product was packed with a thin layer of transparent film with the company name printed on it and were then packed on the brown cardboard box and these box were labelled with the specified details about length, width, thickness and quantity of the product. After the product is packed, new order's process starts.

The company has found a huge scope in digital market and have registered themselves on IndiaMART as a manufacturer and supplier of all kind of BOPP self-adhesive tapes. The company fulfils all the demands from industries or distributers by manufacturing BOPP Self-adhesive tapes and sending it to them. The Company have also started supplying different tapes like:1. Masking Tapes2. Foam tapes3. Paper tapes4. Aluminium foil tapes5. Electric Tape6. Colour Floor Marking Tapes 7. PVC Tape8. Double sided tape, etc.

All the above mentioned tapes company uses to procure from importers who act as a mediator and imports high quality tapes and supply it to distributer in a wholesale rate at huge quantity. These importers act as an entity and takes responsibly of the product that they supply to the companies.

Issues and Challenges facing the company

1. Coordinating with third party commercial vehicle drivers specially at the time of delivery of the finished goods to the right address as given by the clients. Getting orders placed in large scales industry is sometimes difficult as it require some additional documentation.

2. Planning the right route for the delivery of products that reduce costs.

3. Wastage of raw material (like adhesive, polypropylene film, rolls, cardboard boxes, etc.) while manufacturing and packaging of the BOPP self-adhesive tapes.

4. Sometimes the tape specification (mainly in printed tapes) not matched with the required specification while manufacturing the minimum first unit. So the whole unit gets wasted.

5. Managing Inventory is the tough job since product like polypropylene film rolls are delicate, if not handle with care can add to wastage and also some other material are highly flammable. Machines are operated with the help of L.P.G. gas.

6. The other problem might be to convert current assets such as debtors into cash. The business runs on credit facility. Even after specifying the minimum credit period to 30 days, some company even took 6 months in making payment.

7. Sales Return add to the cost of inventory and also is considered to be a loss, specially the printed tapes.

Recommendations and Suggestions

Some of the recommendations and suggestion for M/S Palak Tapes Pvt. Ltd. are:

1. The company can sells its variety of products via ecommerce websites such as flipkart and amazon.in so that it can reach masses. By selling its product online the company can not only widen its reach but also can go international via amazon.com and other ecommerce websites. This is remain a part of the companies direct channel sales strategies.

2. The company can install a small ERP system in order to help managers to track the delivery/shipment of its product while sitting at their respected places. This will reduce cost as well as risk. Through an ERP system the managers of the company can plan the shortest route to deliver the products to the different clients.

3. The company can also use just in time inventory model in order to store less inventory that will help the company to reduce handling cost and reduce the risk of wear and tear of the raw material such as polypropylene films.

4. The company can use the sales returned products which cant be resold, especially in the case of printed tapes which include the name or logo of the brand.

5. The company can store some low cost machinery parts so that in case of breakdown of machinery they can repair it in less possible time.

CONCLUSION

Adhesive Tapes are popularly used for packaging, sealing, labelling, stationery, electrical purpose, etc. Each and every company uses the BOPP Adhesive tapes for packaging purposes. The future for adhesive tapes looks bright in India as well. As companies look beyond traditional forms of packaging and adhesive tape manufacturers as they launch more and more innovative packaging tapes and solutions, the demand for adhesive tapes will also pick up. It looks as though good times are ahead for adhesive tape manufacturers.Palak Tapes Pvt. Ltd. usually uses direct channel strategy by making their sales personnel interact with different clients and vendors. Palak Tapes Pvt. Ltd. have procured agents, sales & marketing representatives, they strive hard to fulfil exact requirement of clients within stipulated time frame. The company is also registered at online business directory IndiaMART.com.The sales people remind the existing clients about the order which they might want and also interact with new vendors to tell them about the company, price quotations and to distribute sample to earn an order. The managers of the company are 24x7 available at IndiaMART from where they get to know about the companies who want adhesive tapes. They interact with the managers of those companies and try to get an order. The sales personnel hired by Palak Tapes Pvt. Ltd. are held responsible for the distribution of the processed order. The goods are processed as per the requirement of clients under the special care of supervisors. The sales personnel remains in contact with the commercial vehicle drivers until the right order is delivered to the right place in the right time. It is said that a channel sales strategy can help an organization to increase its total profits for the business.

BIBLIOGRAPHY

Web Resources: http://palaktapes.com/ http://www.indiamart.com/palaktapes/ https://www.facebook.com/Palaktapes http://www.freedoniagroup.com/World-Pressure-Sensitive-Tapes.html https://www.linkedin.com/pulse/20140408103927-173774513-adhesive-tape-industry-2014-global-and-china-market-research-report

Research Paper: http://krishna.nic.in/PDFfiles/MSME/Packaging/BOPP%20Adhesive[1].pdf http://apitco.org/Profiles/Profiles%20PRS/Adhesive%20Tapes.pdf http://www.afera.com/why-tape/afera-tape-blog/berichten/market-trends-and-statistics-based-on-the-2014-freedonia-global-tape-study.html http://www.researchmoz.us/global-and-china-adhesive-tape-industry-2014-market-research-report-report.html

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