BASIC PRINCIPLES OF ORGANIZE COMMODITY EXCHANGE AND DISTRIBUTION IN CANNERY INDUSTRY OF GEORGIA

A. Lapachi, N. Abesadze, Kh. Bebnadze, Candidates of Economical Science, T. Papiashvili

As a result of the baseline of marketing aspects in production and processing of fruits and vegetable in Georgia the following conclusion was made: for the optimal function of correct distribution and realization of the production according to the distribution markets.

The production being processed by the factories being under the study face problems while getting the distribution destination due to which, the mentioned issue needs the review in a proper manner. The processing factories those are operating in Georgia try to organize the distribution and realization of the produce within own possibilities. (Except those, who develop the business through the intermediate)?
It should be underlined, that the case of partial or distribution of the production on the producing place by the factories those held this business by themselves, is very seldom. Furthermore, a number of firms face severe problems while distributing the produce especially when they are too far from the production zone or place. This is added with the chemical and physical characteristics of the produce, which makes additional problems, white its transportation in the point of its package, transport facilities, conditions for transportation. That is why the each processing specialist should select the distribution conditions and makes them more precise, including the planning of nomenclature and assortment of the production, as this is the important factor for the firm’s success. The distribution process is linked to the delivery of the produce from the producer to the consumer without any case of damage and on due time. It starts from the distribution and ends with the hasten realization of distributed production.
As is noted, the firms been studied by us are selecting the distribution resources and make the organization of marketing of the produce themselves: but the so hard process that, frequently, they face a number of problems. That is why, it’s necessary to include the qualified in this business organizations (from or company). The so cold intermediate organizations work with close cooperation with market net and make the marketing infrastructure. In the process of the produce realization, the share of work in this way is suitable for the processor as for the intermediate, distributing company and, what is the most important, for the society. The processor is free from thinking how to find the market niche and how to make the realization and fully is concentrated on organization of processing process and on the quality of the production. The intermediate firm is well specialized in distribution operations and it’s rather cheaper for him to lead the process for which he, frequently, earns more and even gets the reasonable profit. In both cases the processor and intermediate person are interested in reduction of the cost in both: in processing and distribution. And the reduction of the cost influences on decrease if the retail price of the produce. In this way all are satisfied: consumer, whole society, the company, which is specialized in leading in distribution processes, easily manages the delivery of produce to the destination on due time and without damage, which is not so simple factor in the business.
In the system of the distribution of the canned production a number of intermediate persons operate under the status of retailer. The scales of the intermediate trade depend on market volume and the infrastructure of retail trade; it means number of trade outlets, various trade shops and trading objects (outlets, moving trading objects, street trades and etc). Under the modern conditions, when the well organized, station retail marketing is not yet established; the trade agents are very active in marketing process at the market and outside it. Such type of the marketing as an uncivilized form of service is reducing stage and the developed forms of the organized market covers its place.
The number of different types of trading shops is increasing in the system of retail trade: universal and specialized shops, which, basically, work with stabile trade rules and prices. The net of such shops are trading with more civilized rules and provide the high level service. Despite of this, there are other types of shops in the system, such as: commission, with contract prices, in the form of objects being working on trading with sale. We can meet even such trading object in the trade net; those are in the system of producing firms and work directly their supervision. They are so cold Firm Shops. During last period, the trading houses and organized storage firms are actively appearing, where, despite the trading, the following operations are implemented: package, handling, advertising activities and etc. The formation of reserves and organization of storage farming has a significant importance in the distribution of the production and in selection of trading sources. The trading firms, those are getting the orders and provide the home services are very rear in Georgia. Such objects include homes service according to the order been made by the telephone, so cold Tele marketing, when the advertisement of the produce and the relation with the consumer is carried out through the telephone service. The computer systems are frequently used in Tele-markets, which significantly promote the distribution of ready production. For the complete analyze of marketing aspects, we have studied the situation in distribution of production in Georgia in compliance with the example of supermarkets, markets and different firms those are operating at present in Georgia, strategy for package, weight, retail price and sale.
At the market or in supermarkets we can often meet the canned production basically by Joint-Stock Company “Georgian Company for Natural Juices” and LTD “Georgian Technologies”, as for the natural juices (fruit juices, the following companies are leading in their production: Joint-Stock Company “Lilo”. Herein, it should be mentioned that the natural juices of Joint-Stock Company “Gorkoni” have a low demand due to its high price. There is a great demand on dried fruit, which can be considered as an economic justification for the extension of drying technologies in processing industry. Regarding the European production, they basically are sold in the central districts on Tbilisi and their main consumers are the rich part of the population and foreign diplomats. In general, the trade of processed fruit products in suburbs of Tbilisi is very rear. This can be explained by the fact, that the most of population processes the products themselves at home conditions. In realization of tomato-pasta the Greek firm “Kyknos” is leading; there is law demand on Turkish production, which is caused by poor reputation and low quality of the produce. In general, the reasons for the law consumption of processed production are high prices and law income of the population. But, if incorporating the fact that there is prospect to increase the income of citizens and to develop the technologies for the processing industry, which is the base for the reduction of prices; the consumption will also increase accordingly.
The study showed that there is marketing serviced at the processing enterprises those would be well organized. Such services have significant role in development of marketing aspects. The rapid realization of the processed production have no less significance in the system of distribution and supply management – Production Promotion (the concept is know in Europe under this term). Despite of this, the main idea in this concept is: what activities should the firm work out and implement to hasten the process of realization. This will expand the duration of delivery of the produce to the consumer in short period of time. It’s very productive to hasten the process of product’s realization and circulation of information about it, implementation of additional practices for reminding the consumer about the product, as it’s suitable and brings result for the both: a processor and a consumer. The information system on these activities and, generally is effective in the case, if the ethnic norms, honesty and information reality are protected. If it’s not so the practices can bring the opposite results and may not only break the consumers trust on this or that product for ever, but even run down the image of the firm in civilized business, it’s not allowable not only from economic, but in morality point of view. The processing enterprises been studied face exactly these problems, in 90s they lost the image and reputation due to the law quality production.
According to the study, the utilization of different promotion forms in trade gets significance in hastening of realization process. This form is mainly targeted to the increase of consumers’ interest. These forms include sale, additional free service and etc. Therefore, all the elements in structure of activities for the hastening of realization process have advantages and disadvantages. Each firm works out the own strategy for processes hasten, should be linked to the marketing goals and practices for the realization hastening. The strategy plan should incorporate all aspects those are working during the related activities. Among these factors the main are characteristics of the product, sale and market.The processing company knows the abilities and characteristics of its production well. That is why, first of all, the detail investigation of the market nature is of significant importance. The establishment of prospective distribution suitcase, exposure and selection of potential buyers are implementing in three stages: first stage – the objective is the study of the market; second – implementation of preparatory actions for making the contract with selected buyers; third – attract the buyers’ interest; further stage is making contract with buyer; and last is the realization. Our researches showed that the main reason not only for non-existence of distribution markets, but the critical situation in the sector is the low level study of markets (both: internal and external) and non-existence of information base. The producers do not know what to produce and where to market the produce. That’s why, we consider as a primer task to develop the marketing aspects, which includes establishment of high-developed marketing services; basic study of markets including the review of market volume (even the not satisfied demand); investigation of markets, contribution; identification of supposed trade and practices for demands’ satisfaction; increase of the name of the enterprise and the image; identification of market strategy.