QUESTIONNAIRE

Questionnaire

Analysis of Marketing Problems of Khadi & Village Industrial Units in

Karnataka A case study of Dharwad District

I. GENERAL INFORMATION: -

1. Name and address of the unit:

2. Year of establishment:

3. Nature of products:

4. Type of establishment:

1. Sole Trading

2. Partnership Firm

3. Co-operative Society

4. Khadi Industry

5. Village Industry

5. No. of Charkhas in your possession :

1. Owned

2. Leased

6. Are you running or leased out your charkhas:

1. Running Yes / No

2. Leased out Yes/No

3. Both Yes/No
7. If leased out tick the reasons given below:

a. Lack of adequate working capital

b. Lack of demand

c. Lack of raw material

d. Lack of finance

e. Non availability of labour

f. Any other reason

8. Type of Labour required:

a. Skilled

b. Unskilled

c. Semiskilled

9. Do you get adequate Labour: Yes / No

10. If not Why? Give reasons.

a.

b.

c.

11. What efforts do you make to get required labour? Please mention

reasons.

a.

b.

c.

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12. What is your total investments in

a. Charkhas

b. Working Shed

c. Accessories

13. What are the sources of Capital

a. Own fund

b. From K. V. I. C

c. From Board

d. Any other source like Bank

14. What is your main Occupation

a. Agriculture

b. Govt. Employee

c. Businessman (other than khadi K.V.I.)

d. Others

15. Reasons for entering into Khadi K. V. I. Industry (Rank them)

a. Inherited business

b. Sufficient Knowledge & Experience in related industry

c. Encouraging Govt, policies

d. Motivation by success of friends or relatives in this industry

e. Very good potentiality of export market

f. High returns

g. By the spirit of Gandhism.

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16. How many Khadi & V. I Units you are operating.

a. 01-05

b. 06-10

c. 11-15

17. Along with present business are you running any other business?

a. Yes

b. No

18. If yes

a. Nature of business

b. Place of business

19. The factors, which you think are most important in achieving the

success of your business.

[Rank them according to preference]

a. Own Urge & desire.

b. Adequate capital availability

c. Proper management

d. Good market potentials

e. Govt, assistance (specify 1............. 2............. )

f. Export potential

g. Easy availability of raw materials of labour.

h. Advise from family members & relatives.

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20. Are you optimistic about the future development Yes / No

a. If yes give reasons

1.

2.

3.

b. If No give reasons

1.

2.

3.

21. Do you have any previous experience in Khadi & Village Industry

before establishing the present one? Yes/ No

22. If yes How many years of experience?

a. 1 -5 years

b. 6-10 years

c. 11-15 years.

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 II - Product

1. What are types of your product

Product Quantity of production

Quantity Value in Rs.

10

11

12

13

14

2. Name the product which sells more

a.

b.

c.

d.

3. Why does these products sells more?

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4. Why not you change these designs?

5. Is there any improvement to increase sales?

6. Why do you stick on with these products?

a. Good sale.

b. Good demand

c. High margin.

d. Customer prefer these

e. Management policy.

f. Govt, restrictions.

g. No competition.

7. Are you changing the design Yes/No

a. If yes, give reasons

1.

2.

3.

4.

5.

b. If no give reasons

1.

2.

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8. How often you change the design of your product?

a. Once in a year

b. Once in a half year

c. Once in a two year.

d. Once in four year & above.

9. Reason for changing your design

a. Customer Choice

b. Change in fashion.

c. Management Policy

d. Aract the prospects.

e. Face the threads from competitions.

f. Face the challenges.

g. Increase the profitability.

h. Change in management.

i. Change in cost of production

j. As demand by dealers.

10. Do you believe that you have a good future? Yes/No

a. If yes give reasons

1.

2.

3.

4.

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 b. If No give reasons

1.

2 .

11. Who are your competitors?

D___________________________ 2)______________________ 3).

12. What is your nature of competition?

a. Price competition

b. Change in design by rivals

c. Change in fashion

d. Change in cost of production

e. Aggressive advertisement by rival firms

f. Superior quality of mill made cloths etc.

g. Others (specify)

13. Who are your customer?

a. Rural customer

b. Uneducated customer

c. Poor customer

d. Educated peoples

e. Officers

f. Freedom fighter

g. Women

h. Businessman

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 i. Politicians

j. Professors

k. College students

l. Workers

m. Others (Specify)

14. Where do you carry out production?

a. Residential building Yes/No

b. Own factory shed Yes/No

c. Rented building Yes/No

d. Any other

15. Do you take job orders?

a. If yes what is the extent of job order to total sales?

1. 40:60

2. 50:50

3. 60:40

4. Any other

16. Production trend of your unit

Quantity / Value Quantity / Value

1994 1999
1995 2000
1996 2001
1997 2002
1998 2003

17. Do you grade your product? Yes/No

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 1. If yes have your specialized knowledge of grading?

a. Yes

b. No

2. Do you employ qualified graders?

a. Yes

b. No

18. If you are not grading your product what difficulties do you experience?

a. Lack of technical knowledge

b. Loss of better price

c. Low market potential

d. Customer preference

e. Any other (specify)

19. What is the nature of demand for your product?

a. Seasonal

b. Regular

III STORAGE:

1. Where do you store your product?

1)________________ 2)__________________3)____________

2. Do you have adequate storage facilities?

Yes No

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 3. If no how you cope with this problems?

a.

b.

4. What is the annual loss due to inadequate storage Rs.__________

IV. STANDARDIZATION

1. Do you believe in maintaining standards in the quality of your products?

Yes / No

2. If ‘yes’ what steps you have taken to standardize your products?

3. Do you get any help from Government other agencies in maintaining

standard?

4. What is the annual cost of standardization of your products Rs._______

5. Which grade do you follow?

V. PRICING: -

1, How do you determine the sales price of your product?

a. Based on cost plus margin

b. Depending on Market condition

c. Based on competition

d. Any other (specify)

2. What are the objectives of pricing?

a. Maximization of profit

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 b. To keep the charkhas running

c. Return on investment.

d. Any other objectives.

3. Does the price of your product changes frequently? Yes/No.

4. If yes Why?

a. Change in demand

b. Increase in cost

c. Any other reasons.

5. Give details of price trends of your products for the last 5 years.

Years Price Per Unit (Rs.)

2000-2001

2001-2002

2002-2003

2003-2004

2004-2005

VI. MARKETING:-

Promotion And Distribution

1. Where do you sell your product?

a. Local

b. Outside the city

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 c. Outside the district

d. Outside the state

e. Export

2. Why does your sale restricted to these places?

3. What problems do you face regarding transportation?

a)_________________ b)__________________c)___________________

4. What is the annual cost of transportation (Rs.____________________ )

5. Through whom do you sell your products (Mode of sale)

Percent

a. Whole seller
b. Retailers
c. Own Sales Depot
d. Agent
e. Exporters
f. Others specify
Total 100%
6. What difficulties do you encounter in dealing with the above channels of

distribution?

1)__________________ 2)_________________ 3)_________________

7. Do you indulge in distress sales during off seasons? Yes/No

8. What is the average unsold stock of your product?

i) 10 PC ii) 20 PC iii) 30 PC iv) 40-50 PC v) More than 50 PC

9. How do you manage the unsold stock?

1)__________________ 2)_________________ 3)_________________

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10. What you expect from Government to develop the Khadi industry?

11. The number of consumers for your product is decreasing day-by-day do

you agree? Yes/No

a) If yes give reasons

1) Poor Production

2) Less Marketing efforts

3) High cost of production

4) Competition

b) If no give reasons

1)

2)

3)

12. Do you sell your products in

a) Karnataka

b) Maharashtra

c) Andhra Pradesh

d) Bihar

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13. Do you think that the market for your product is in

a. Expanding

b. Contacting

c. Stagnant

14. Does your buyer come to your place to purchase goods Yes/No

15. If no what is extent of Geographical distance that you cover to sell your

products?

a. 1 to 5km

b. 5 to 15kms

c. 15to20kms

d. 20 to 25kms

e. 25 to 30kms

f. 30 to 35kms

g- 35 to 40kms

h. 40 to 45kms

i. 45 to 50kms

i- 50 and above

16. Specify the total distribution costs? Rs.______________

17. a) Do you sell your products in Credit? Yes No

b) What is the usual credit period allowed?

i) 1 to 3 months

ii) 3 to 6 months

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 iii) 6 months and above

18. What are the problems you face in credit sales

a. Bills not met promptly

b. Bad debts

c. High financial costs

19. How do you collect your dues?

a. By personal visits

b. Through Cheques by posts

c. Any other method

20. How much Capital is locked up due to credit sales over the years?

Rs.__________________

21. How do you manage the shortage of funds due to credit sales?

a. By borrowings

b. Out of family savings

c. Other Source

22. What is the additional cost due to Credit Sales?

Rs.___________________

23. Are there any de-merits in selling your products?

a. Less attractive designs

b. Expensive for maintaining

c. Any other reasons

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B. Co-operative Of Marketing

1. Are there any Marketing Co-operative Societies to sell your product?

Yes / No

2. If no why give reasons

a)

b)

c)

3. Do you think formation of Marketing Co-operatives will help in

increasing sales?

4. If yes by how much Rs.___________________

5. Mention which factors are more responsible for the operational

problems of your firm.

a. Product based problems

b. Market based problems

6. How your product is sold?

a. Directly (Percentage________________ )

b. Distribution channels (Percentage_____________ )

(i.e. manufacturer_______wholesaler________ Retailers_______

Consumers_______ )

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VII. MARKETING COST:

1. What are your costs of Marketing?

a. Transportation: Costs to total Marketing costs per annum

b. Storage: Costs to total Marketing costs per annum

c. Grading: Costs to total Marketing costs per annum

d. Packaging: Costs to total Marketing costs per annum

e. Advertising: Costs to total Marketing costs per annum

f. Sales men’s: Costs to total Marketing costs per annum

Salary and Commission

g. Establishment of: Costs to total Marketing costs per annum

Showroom

h. Others: Costs to total Marketing costs per annum

2. Do you find Marketing Costs are:

a. Constant

b. Increasing

c. Decreasing

d. Fluctuating

3. If increasing/Fluctuating what is the extent of increase/Fluctuation

during the last year in each of the above costs viz.

a. Transportation: %

b. Storage: %

c. Grading: %

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d. Packaging: %

e. Advertising: %

f. Sales men’s Salary and Commission %

g. Establishment of Showroom %

h. Others: %

4. If decreasing specify the percentage of decrease %

5. How does the costs of marketing affect your

a. Sales

b. Profit

c. Others

VIII. PROBLEMS OF COMPETITION

1. Rank the severity of competition

a. Price

b. Quality

c. Advertisement

d. Credit Sales

e. Cost of Production

f. Cost advantage of Mill made cloth

g. Change in fashion

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2. Who are your main competitors in Market

a. Wholesaler

b. Retailer

c. Textile industries

3. What difficulties do you experience in facing competition from your

rivals?

1)_______________________________________

2)_______________________________________

3) _______________________________

4) _______________________________

5) _______________________________

4. How can these problems be solved?

1)_______________________________________

2)_______________________________________

3)________________________________

5. Why is your product not preferred much?

a. Product are not available in every shops

b. High price

c. Hand spin cloth made

d. Low discount

e. Irregular discount

f. Maintenance is high

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 g. Frequently starching at every wash

h. No preference by educated persons

i. Attention of Youths towards mil made fabrics

6. Do you need sales promotion methods such as

a. Discounts

b. Coupons

c. Free offer

d. Others (specify)

7. What are marketing problems you are facing?

e.

f.

8. What help do you get from Government in overcoming the problems of

competition.

1)______________________________________________

2)_______________________________________

3) _____________________________________

4) _____________________________________

9. What is your sales turnover?

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 10. Year wise sales trend.

Dharwad District

1997 to 2003 - 5 years

Years Production Sales

1997-98
1998-99
1999-2000
2000-01
2001-02
2002-03

Month wise sales of 2003

January May September

February June October
March July November
April ^August____ December

11. What are the cost components of your product

Amount per unit in Rs.

a Yarn
b Color
c Labour
d Electricity
e Rent
f Any others
9 Total production cost

12. Do you purchase Khadi? Yes/No

a) If yes Why?

1)

2)

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3)

b) If no Why?

1)

2)

3)

IX. ORGANIZATION AND PLANNING

1. Have you arrange a separate marketing department in your Society?

Yes/No

2. Who looks after your sales organization?

3. Do you manage both production and Marketing function?

Yes/No

4. Do you forecast demand for your products? Yes/No

5. If ‘yes’ what factors do you consider?

6. Have you any plan for sales and the other needed facilities for the

future Yes/No

7. If ‘yes’ what aspects do you plan future sales?

a. Finance

b. Production

c. Transport

d. Appointment of middlemen's

e. Others

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 8. What difficulties do you encounter in planning?

a. Information

b. Subsidy

c. Labour

d. Raw Materials

e. Training of Salesman

9. Have you any trained Salesmen

Yes/No

10. If ‘yes' what is the nature of their training?

11. Do you encounter difficulties in obtaining trained Salesmen

Yes/No

X. MARKET RESEARCH

1. Have you ever undertaken Market research?

Yes/No

2. If not why? Specify reasons

a. No necessity

b. Costly affair

c. Lack of Technical person

d. Any other reasons

XI. MARKET INFORMATION

1. How do you get market information?

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 a. Through dealers

b. Through news papers

c. Radio/T.V,

d. Co-op. Societies

e. Own Association

f. Any other source

2. Do you change your product designs according to market information?

Yes/No

3. Do you change your pricing according to the market information?

Yes/No

XII. ADVERTISEMENT

1. Do you advertise your products?

Yes/No

2. If ‘yes’ what is the effect on Sales?

a. Increased

b. Decreased

c. No change

3. What is the annual cost of advertising? Rs,

4. If‘No’why?

a. No necessity

b. Consumers are in rural area and illiterate

c. High cost on advertisement

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XIII. BRANDING

1. Do you brand your product?

Yes/No

2. If ‘yes’ mention the brand names

a.

b.

c.

d.

3. If ‘No’ why? Give reasons.

a.

b.

c.

d.

XIV. PACKING:

1. Does your products needs packing?

Yes/No

2. If ‘yes’ how do you pack?

a.

b.

3. What is the annual cost of packing? Rs,

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 4. If ‘No’ why?

a. No necessity

b. No effect on sales

c. Any other reasons

5. If packing is made more attractive can you boost your sales?

Yes/No

XV. INSURANCE

a) Do you insure your products?

Yes/No

b) If ‘yes’ what is the annual cost of insurance? Rs._________

c) If ‘No’ give reasons

1._____________________________________________________

2._____________________________________________________

XVI FINANCIAL FACTORS

1. Do you get financial help from Banks and financial institutions for your

investments? Yes/No

2. If ‘yes' specify the purpose for which you need finance.

[A] For Fixed capital

1. Land

2. Building

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3. Machinery

4. Office equipments

[B] For working capital (in lakhs)

Per year

a. 01-05

b. 06-10

c. 11-15

d. 16-20

e. above 20

3. What are the Source of Finance

a. Own capital

b. Collection from members

c. Loan from commercial Banks

d. Loan from KVIC

e. Other sources (specify)

4. Did you face any problems in obtaining finance from KVIC or Banks?

a. Yes

b. No

303
5. What are the reasons for not obtaining financial assistance (Rank them)

a. Personal back ground

b. Lack of Securities

c. Too much formality

d. Others

6. Do you accept deposits from public? Yes/No

a. If ‘yes’ what formalities do you follow?

1.

2.

3.

b. If ‘No’ why?

7. How much finance is required to run your industry successfully per

year? Rs,_______________

8. How much working capital is needed annually?

Rs._______________

9. How much expenditure incurred in obtaining the loan?

Legal Rs.

Illegal Rs.

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XVII GOVERNMENT POLICY

1. Whether the policy of the Government towards your industry is

a. Favourable

b, Not favourable

2. Do you think Government is taking keen interest in developing KVIC?

Yes/No

a. If ‘yes’

1.

2.

3.

b. If‘No’

1.

2.

3.

4.

3. Did the Government assisted in preparation of project report?

Yes/No

a. If‘Yes’

b. If‘No’

305
4. Whether Government is conducting the programs and also helping to

identify business opportunities. Yes/No

a. If‘Yes’

b. If‘No’

5. Whether Government is helping you in getting technical know how?

Yes/No

a. If'Yes’

b. If‘No’

6. What are your expectations from Government?

a. Helping to machineries & equipments

b. Providing raw-materials in cheep rates

c. Providing training facilities

d. Providing infrastructure like power, water, transport facilities.

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 e. Conducting quality conscious programs

f. Providing subsidies

g. Organizing trade fairs

h. Providing govt, scale salary to the workers

i. Any others

7. Whether procedure for getting License from Government is.

a. Very simple

b. Simple

c. Difficult

d. Neither simple not difficult

8. Are you happy with the present Government measure to strengthen the

Khadi Industry?

a. Happy

b. Unhappy

9. If your are not happy specify the steps to be taken by Government

a. ______________________________________________________

b. ______________________________________________________

c. ______________________________________________________

d. ______________________________________________________

10. Do Government give preference to your cloths purchasing its cloth

requirement for its departments? Yes/No

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11. a) Do you get subsidy from Government? Yes/No

b) If ‘yes’ specify

1. Loan subsidy for buying fixed assets

2. Interest subsidy on loans

3. Price subsidy on sales

c) What is the annual amount of subsidy received from government/KVIB?

12. What are the major marketing problems of your products Rank them in

terms of severity?

Problems Rank

1. Faulty design of Khadi cloth

2. Poor quality of khadi

3. Lack of effective sales organization

4. Competition from mill made cloths

5. Storage in adequate and high storage cost

6. High cost of advertisements

7. No preference for Government purchases of khadi

8. In adequate marketing finance

9. Government subsidy is in adequate and not timely

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10. Demand for Khadi products is shrinking in general

11. Payments are not made promptly by Government

agencies for their purchases

12. Credit sales cause lock up of funds

13. Unsold stock has been increasing

14. Packaging and transport costs are high

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