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Project Report Sales Policy and Price Policy of Chinar Suitings


Project Report Sales Policy and Price Policy of Chinar Suitings


Sales and Policy Policy of the Company

For increasing sales & for conducting successful sales company has adopted the policy these are :

1. Security deposit : It is the money deposited by the dealer in the company as a security of the product taken by him for sale.

2. Terms of Payment : In this third party is included in the agreement. If the agreement is between two parties and the party who is responsible for the payment is not able to pay then on their behalf third party will make payment. In this case payment is made through credit notes like Bills Recievable & Bills payable.

3. Diccount : Company has fixed the policy that if the dabtors pays the money before its time limit than discount will be given to him by the company.

4. No Hundi Return Incentive : Incentive is 1% but paid not later than 105 days.

5. Special Yearly Rewards and Incentives : Yearly rewards is given to those who has sell the product before completing the year and extra selling is done by him. Yearly purchase is decided when sales policy is prepared.

6. Return Incentive : Company has fixed the incentive for the quantity of purchasing. If the buyer purchases that much quantity of product he will get the incentive which is fixed for that much purchasing.

  1. If the buyer purchases the product of 15 lakh and above but below 20 lakhs gets 3.5% incentive from the company.
  2. For 20 lakhs & above purchasing but below 30 lakhs is 4% incentive.
  3. For 31 lakhs & above purchasing but below 40 lakhs is 4.5% incentive given.
  4. For 40 to 50 lakhs purchasing is 4.75% incentive given.
  5. For 51 lakhs to 75 lakhs purchasing is 5% incentive given.
  6. For 75 lakhs and above purchasing is 5.5% incentive given.

7. Advance Quality Booking Incentives : Quality which is to be purchased is booked in advance by the company. It is done when the product is not available. Incentives is given to the buyer for placing order in advance.

8. Rate Difference Compensation : Company has fixed the quantity on which compensation is to be given. If buyer purchases that much of quantity he will be entitled to receive compensation. Dealer who purchase 10 boxes of product will get 5% compensation and dealer who purchases 5 boxes of product will get 3% compensation. This difference in compensation is known as rate difference compensation. Time variation occurs in it.


Price Policy :

Marketers try to activate their long run pricing objectives through both price policies and price strategies. Management utilises price polices to guide itself generally in making pricing decisions over long periods.

Price policy of company is setting the price of the product by considering the factors effecting the price of the product. The company set their price policy by considering the following two factors.

(a) If the fabric in competition - In this case, the company adopts a going rate pricing policy. Information about the price and quality of fabric from the market policy is set. It also requires daily market report of other companies manufacturing same type of fabrics. Company then compares the rate and quality and according to that it sets the price.

After collecting the requires information about price policy the meeting of sales committee and with the representatives of dealers is conducted so that the prices of the fabrics are settled with the suggestions and terms & conditions of them.

(b) In New Fabric is produced :

This is another factor according to which the company set its price policy.

Price Policy in this condition is set by considering production cost and profit margin.

Production Cost + Profit = Sales Price.

Cost includes both direct as well as indirect cost.

Companies like Siyaram, BSL, Mayur, Raymonds, Graviera, Vimal is leading in price and products of Bhilwara company is lagging in price by Chinar Syntex Ltd.

There are also some difficulties come in the way of company for selling its products. Every company has this type of problems. These are some problems which effects the sales of this company.

  1. Better quality of fabric present in the market.
  2. There is change in the attitude of the people about the cotton fabric they are mostly attracted towards ready-made garments.
  3. Manufacture only suitings not shirting.
  4. Competition is wide.
  5. Frequent change of fashion.


Project Description :

Category : Project Report for MBA

Title : Project Report on Sales Policy and Price Policy of Chinar Suitings

Pages : 60

Description :This project report on Sales Policy of Chinar Suitings, Price Policy of Chinar Suitings, New Fabric Produced, Fabric in Competition, Full Information about Chinar Suitings.

This project is our paid category, its cost is Rs. 2499/- only without Synopsis and Rs. 2999/- only with synopsis. If you need this project, mail us at this id :

We will send you a hardcopy with hard binding and a softcopy in CD from courier.