Data Collection Methodology for Expansion of Plants:
A Functional Approach on Paper Mills Considering the Product
"News Print Paper"

Puneet Kumar
PGDBM, DSM, M.A.(Maths), Ph.D.
Institute of Management Education
178, Main G.T. Road, Sahibabad, Ghaziabad (U.P.) - 201 005
E-mail : /

Consumption of paper and paper products are directly linked with the industrial and economic growth of the country. The newsprint paper organization should consider the present scenario and expansion cum modernization programme. The essential factors required due to expansion of plant are as follows :

    1. Distribution:- It contains

      a. Preferred distribution channels

      b. Margin of each level

    2.  Competition:- It measures

      a. Buyer identification (names) and market share

      b. Prices of competitive product

      c. Supplies / Manufacturers of competitive product

      3.   Analysing the market environment :- It includes

      a. Identifying Industrial buying behaviour

      b. Measuring and forecasting market share

     4.    Finance :- Marginal money required for working capital

     5.    Technical Arrangements :- It consists of

      a. Identifying the machine

      b. Arrangement of raw material

      c. Power and Fuel

      d. Chemical and Dyes

      e. Environmental aspects

*Address for Correspondence : III E - 7 /9, Nehru Nagar, Ghaziabad (U.P.) INDIA 201 001

To reap the benefit of liberalization in the Indian economy and observing the bouncing in the paper industries should decide to go for expansion. Under the above factors the expansion programme may suggest to design for establishment of marketing inputs in terms of marketing potential, competitive prices and distribution channels.

In order to achieve the objective, a systematic methodology should follow. After giving an extensive thought to the objective behind the study, both sources of data collection namely primary and secondary should be considered.


The method can be adopted for the collection of primary data in paper industry specially considering the product newsprint paper is questionnaire method and distributor or store audit method.

a. Questionnaire Method

The questionnaire conveys the various policies, mode etc. in context of the distribution technology research etc. The question may be put here, mainly the leading questions. On this basis, a detailed account of all policies followed by an organization in context to their distribution channel, transportation mode, production, about the carriers, technology, marketing etc. can be obtained. The quarries may ask to only those marketing personnel who are looking after the distribution department, as they are input for the organization regarding adequate knowledge of various rules & regulations, merit & demerit, policies governing transportation etc. 

Through the questionnaire, we can achieve the information regarding the future of organization planning i.e. the diversification of organization in different fields. The policies should cover due to the expansion of plant as follows :-

        • Distribution Network
        • Marketing Arrangement
        • Mode of Transportation
        • Technology
        • Production
        • Present & Past Scenario

b. Distributor of Store Audit Method

Distributor or store audit is performed by distributors as well as manufactures through their salesman at regular intervals. Distributors get the retail stores audited through marketing executives and use such information to estimate market size, market share and seasonal purchasing pattern. This data has been obtained in such audits not by questioning but by observation. The main advantage of this method is that it offers the most efficient way of evaluating the effect on sales of variation of different techniques in store promotion.


The data used to define as secondary data if they are not collected specifically for solving the problem currently being investigated. Secondary data sources used in this study are :

    a. The data can be obtained form the reputed News paper organization i.e. The Economic Times, The Times of India, The Hindustan Times, The Business Standard etc.

    b. Annual report and other reports of the newsprint paper organization.

Out of these basic methods, no doubt the questionnaire method has come out to be more widely used. As this method has an edge over the other method of being natural. This is because when you want to ask something or want to collect some information, it is natural to ask questions. A questionnaire can be further classified on the basis of :

    a. The degree to which the questionnaire is formalized or structured.

    b. The disguise or lack of disguise is the objectives of the questionnaire.

Questionnaire studies can be conducted either with or without formal lists of questions. The process of following a prescribed sequence of specific questions is referred to, as structural study while the other is non-structural. Questionnaires can be formed so that the objectives may clear to the respondent (non-disguised), or they can be nonstructural so as to disguise the objective.

In India, the demand of newsprint paper is become very large and supply is less against demand. Therefore, paper organizations should consider this demand and go for expansion of plant. For deciding the pricing policy, market strategy and expansion of plant, the paper organization may use the data collection methodology and reap the benefit of liberalization in Indian economy.

Puneet Kumar
PGDBM, DSM, M.A.(Maths), Ph.D.
Institute of Management Education
178, Main G.T. Road, Sahibabad, Ghaziabad (U.P.) - 201 005
E-mail : /

Source : E-mail December 14, 2003




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