Business Research Method Report

7/28/2019 Business Research Method Report

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Business Research Method Report

On

Vendor Sales Analysis on Coffee

Submitted By

Prabhakar K D Vardhan 1226112238

Vulluri Pawan Kumar 1226112259

K Chaitanya Guttula 1226112223

Submitted To

Dr. R. Venkateswarlu (Professor & Assistant Director)

Dr. B. Padma Narayan (Assistant Professor)

Visakhapatnam



Acknowledgement

This research project would not have been possible without the support of many people. We wish

to express our gratitude to our Professor Dr. R. Venkateswarlu who was abundantly helpful and

offered valuable assistance, support and guidance. Our deepest gratitude are also with our

Assistant Professor Dr. B. Padma Narayan without whose knowledge and assistance this study

would not have been successful. We are very delightful to her for her support in each and every

step of our research paper. We would also like to convey thanks to the Nilgiri Coffee Works for

providing all the financial data and all the necessary data without which we won’t be able to

complete our research. Finally, we would like to thank all the people who directly or indirectly

helped us in making this research paper.



Contents

Executive Summary

Introduction

Business Environment

Objectives of the Research

Supply Chain Process

Inventory Management

Lead Time and Procurement of goods

Methodology

Results

Conclusions and Future Suggestions

References

Appendix



Executive Summary

Coffee today is the 2nd

largest traded commodity in the world. It is been consumed by many

persons day in and day out. Coffee production is mainly dominated in South India with leading

Karnataka with 53% followed by Kerala and Tamil Nadu. The major competitors of our business

are Coffee Day, Nescafe, and BRU etc. This paper covers the overall supply chain of our coffee

business. It shows the network of how the raw coffee beans from farmers reach the Retailers.

Also it tells about how the inventory is managed efficiently. The entire lead time and

procurement of goods are also calculated. The major part in this paper is the sales and purchase

of our business as per the seasonal variations. Through this data we have seen significance in

between two months and also one month with the overall months. Finally we have analyzed the

sales growth and also forecast for the upcoming months.

Introduction:

Coffee is the 2nd

traded commodity in the world after crude oil and it is cultivated across 80

nations in the world (central & south America, Africa, & Asia).Coffee production in India is

dominated in the hill tracts of South Indian states, with the state of Karnataka accounting 53%

followed by Kerala 28% and Tamil Nadu 11% of production of 8,200 tonnes. Indian coffee is

said to be the finest coffee grown in the shade rather than direct sunlight anywhere in the

world. There are approximately 250,000 coffee growers in India. Coffee is grown in three

regions of India with Karnataka, Kerala and Tamil Nadu forming the traditional coffee growing

region of South India. Ideal climatic conditions to grow coffee are related to temperature and

rainfall; temperatures in the range of 73 °F (23 °C) and 82 °F (28 °C) with rainfall incidence in

the range of 60 – 80 inches (1.5 – 2.0 m) followed by a dry spell of 2 – 3 months suit

the Arabica variety. Cold temperatures closer to freezing conditions are not suitable to grow

coffee. Thought, the Indian coffee industry is expected to post sound growth on account of

growing domestic demand. Key pressing issues of labor shortage and migration, and tremendous

increase in cost of labor are major concern areas for the industry.

Business environment

According to business in this coffee production sector there are many competitors like Nescafe,

coffee day & Bru. These are the major competitors in this sector at present. These companies are



trying to be no.1 in supplying required quantity to the required customers but they are decreasing

the quality of the product. Due to this the small scale industries could not be developed. So, this

is the main issues facing by the small scale industries.

Objectives

The main objectives of our project are as follows:

Supply chain management

Inventory management

Lead time & Procurement of goods depending on seasonal variations

Sales volatility depending on seasonal variations.

Monthly variations taking daily sales

Supply Chain Process

Farmers Central Warehouse Wholesale Distributors Retail Manufacturer

Figure.1 Supply Chain management of Raw Materials (farmers to Retail Mfrs)

Tamil

Nadu

Bangalore

(Coffee Board

of India)

Puja Coffee

Works

Ambica CoffeeWorks

Neelagiri

Coffee Works

Karnataka

Kerala

Andhra

Pradesh

Nadars Coffee

Works



Figure 1 depicts the supply chain process involved in flow of Raw Materials from Farmers to

Retail Manufacturers. As shown in the figure, coffee beans are grown mainly in the three regions

i.e.., Tamil Nadu, Karnataka, Kerala and Andhra Pradesh. The major production of coffee is

from the state of Karnataka of about 53% followed by Kerala about 28%, Tamil Nadu about 11%

and Andhra Pradesh about 2%. The overall coffee production is sold at the Coffee Board of India

for about Rs. 100 – Rs. 300 per Kg according to coffee seeds grading. Coffee Board of India is

said to be the Central Warehouse. Every month Coffee Board of India sets an auction for the

coffee and the one who bids the highest buys the coffee. In the auction there will be several

Wholesale Distributors namely Nadars Coffee Works, Puja Coffee Works, Ambica Coffee

Works etc.

Inventory Management

The incoming coffee bean stocks are placed in the godown which is in the shop. The area of the

shop is (8*9) *2 mt. So, approximately we can place around 1000Kg of coffee bean bags

according to different varieties in different lots so that based on the lots there will be an ease in

the process of taking the bags out and deliver it to the customer. There will be proper ventilation

also the gunny bags will be thick so that there will be no moisture content. Also all the gunny

bags will be placed over a plastic cover so that vapor content from the ground won’t allow

moisture content into the gunny bags. As per customer’s demands and needs coffee beans are

sold in different formats like raw, roasted or powder.

Lead time & Procurement of goods depending on seasonal variations:

Generally, the coffee bean seeds are mainly procured at our distributors place. We usually buy

coffee bean seeds in a lot but we bring only 1 ton coffee bags with us and rest will be procured at

our distributor’s warehouse. Whenever there is a shortage in our godown we will be calling to

our distributors and inform them about demand. Then they will send the bags within 2 working

days and all the costs of transportation, labor and unloading charges are paid by us.

There will be huge amount of procurement of coffee during rainy season and winter season. So

to satisfy the demands in both these seasons, we will procure a large amount of stock in summer

season itself. The reason behind this is that in rainy season and winter season, the moisture



content in seeds will be more due to which the operation charges and processing time will be

more. Since, the quality of the seeds in summer season is also nice as compared to other season

so we buy a large quantity in summer and procure them at our distributors warehouse and as well

as in our godown so that we can match our customers demand.

Methodology

The methodology which we processed our research is by doing an trend projection of sales for

every months and analyzing the significance on comparing each month with every other months

through one way anova through spss and observing the growth of sales from one month to

succeeding months and measuring inventory stocks.



Conclusion

Hence from the above obtained output from SPSS and excel, we can observe that while

comparing one month with the remaining months, we find that it will be less significant since the

demand vary every month so, the sales may vary. Hence it will be less significant. We also

observe that in the month April and July, it is very significant since sales in those seasons are

large. This is mainly due to winter season and also it is the beginning of financial year. Finally

comparing the sales growth monthly we can observe that it is also more significant due to

seasonal variations.



GRAPHS

over all sales growth

APRIL SALES

MAY SALES

-100000

0

100000

200000

300000

400000

500000

600000

1 2 3 4 5 6 7 8 9 10

sales

growth

0

5000

10000

15000

2000025000

30000

35000

4 / 1 / 2 0 1 2

4 / 3 / 2 0 1 2

4 / 5 / 2 0 1 2

4 / 7 / 2 0 1 2

4 / 9 / 2 0 1 2

4 / 1 1 / 2 0 1 2

4 / 1 3 / 2 0 1 2

4 / 1 5 / 2 0 1 2

4 / 1 7 / 2 0 1 2

4 / 1 9 / 2 0 1 2

4 / 2 1 / 2 0 1 2

4 / 2 3 / 2 0 1 2

4 / 2 5 / 2 0 1 2

4 / 2 7 / 2 0 1 2

4 / 2 9 / 2 0 1 2

Amount

Amount



JUNE SALES

JULY SALES

0

5000

10000

15000

20000

25000

30000

35000

40000

5 / 1 / 2 0 1 2

5 / 3 / 2 0 1 2

5 / 5 / 2 0 1 2

5 / 7 / 2 0 1 2

5 / 9 / 2 0 1 2

5 / 1 1 / 2 0 1 2

5 / 1 3 / 2 0 1 2

5 / 1 5 / 2 0 1 2

5 / 1 7 / 2 0 1 2

5 / 1 9 / 2 0 1 2

5 / 2 1 / 2 0 1 2

5 / 2 3 / 2 0 1 2

5 / 2 5 / 2 0 1 2

5 / 2 7 / 2 0 1 2

5 / 2 9 / 2 0 1 2

5 / 3 1 / 2 0 1 2

Amount

Amount

0

500010000

15000

20000

25000

30000

35000

40000

6 / 1 / 2 0 1 2

6 / 3 / 2 0 1 2

6 / 5 / 2 0 1 2

6 / 7 / 2 0 1 2

6 / 9 / 2 0 1 2

6 / 1 1 / 2 0 1 2

6 / 1 3 / 2 0 1 2

6 / 1 5 / 2 0 1 2

6 / 1 7 / 2 0 1 2

6 / 1 9 / 2 0 1 2

6 / 2 1 / 2 0 1 2

6 / 2 3 / 2 0 1 2

6 / 2 5 / 2 0 1 2

6 / 2 7 / 2 0 1 2

6 / 2 9 / 2 0 1 2

Amount

Amount



AUGUEST SALES

SEPTEMBER SALES

0

5000

10000

15000

20000

25000

30000

7 / 1 / 2 0 1 2

7 / 3 / 2 0 1 2

7 / 5 / 2 0 1 2

7 / 7 / 2 0 1 2

7 / 9 / 2 0 1 2

7 / 1 1 / 2 0 1 2

7 / 1 3 / 2 0 1 2

7 / 1 5 / 2 0 1 2

7 / 1 7 / 2 0 1 2

7 / 1 9 / 2 0 1 2

7 / 2 1 / 2 0 1 2

7 / 2 3 / 2 0 1 2

7 / 2 5 / 2 0 1 2

7 / 2 7 / 2 0 1 2

7 / 2 9 / 2 0 1 2

7 / 3 1 / 2 0 1 2

Amount

Amount

0

500010000

15000

20000

25000

30000

35000

40000

8 / 1 / 2 0 1 2

8 / 3 / 2 0 1 2

8 / 5 / 2 0 1 2

8 / 7 / 2 0 1 2

8 / 9 / 2 0 1 2

8 / 1 1 / 2 0 1 2

8 / 1 3 / 2 0 1 2

8 / 1 5 / 2 0 1 2

8 / 1 7 / 2 0 1 2

8 / 1 9 / 2 0 1 2

8 / 2 1 / 2 0 1 2

8 / 2 3 / 2 0 1 2

8 / 2 5 / 2 0 1 2

8 / 2 7 / 2 0 1 2

8 / 2 9 / 2 0 1 2

8 / 3 1 / 2 0 1 2

Amount

Amount



TREND PROJECTED SALES

0

10000

20000

30000

40000

50000

60000

9 / 1 / 2 0 1 2

9 / 3 / 2 0 1 2

9 / 5 / 2 0 1 2

9 / 7 / 2 0 1 2

9 / 9 / 2 0 1 2

9 / 1 1 / 2 0 1 2

9 / 1 3 / 2 0 1 2

9 / 1 5 / 2 0 1 2

9 / 1 7 / 2 0 1 2

9 / 1 9 / 2 0 1 2

9 / 2 1 / 2 0 1 2

9 / 2 3 / 2 0 1 2

9 / 2 5 / 2 0 1 2

9 / 2 7 / 2 0 1 2

9 / 2 9 / 2 0 1 2

Amount

Amount

0

50000

100000

150000

200000

250000

300000

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Documents

Business Research Method Report