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These drinks were called soft drinks, only to separate them from hard alcoholic drinks. This drinks do not contains alcohol & broadly specifying this beverages, includes a variety of regulated carbonated soft drinks, diet & caffeine free drinks, bottled water juices, juice drinks, sport drinks & even ready to drink tea/coffee packs. So we can say that soft drinks mean carbonated drinks.
1923:-Six-pack soft drink cartons called "Hom-Paks" created. 1929:-The Howdy Company debuts its new drink "Bib-Label LithiatedLemon-Lime Sodas" later called "7 up". Invented by Charles Leiper Grigg. 1934:-Applied color labels first used on soft drink bottles, the coloring was baked on the face of the bottle. 1952:-The first diet soft drink sold called the "No-Cal Beverage" agingerale sold by Kirsch. 1957:-The first aluminum cans use. 1959:-The first diet cola sold. 1962:-The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA. The pull-ring tab was invented by Alcoa. 1963:-The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in March, invented by Ermal Frazee of Kettering, Ohio.
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) is products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products.
The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing several problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market.
By the turn of the 20th century, the face of the Indian FMCG industry had changed significantly. With the liberalization and growth of the Indian economy, the Indian customer witnessed an increasing exposure to new domestic and foreign products through different media, such as television and the Internet. Apart from this, social changes such as increase in the number of nuclear families and the growing number of working couples resulting in increased spending power also contributed to the increase in the Indian consumers' personal consumption.
The realization of the customer's growing awareness and the need to meet changing requirements and preferences on account of changing lifestyles required the FMCG producing companies to formulate customer-centric strategies. These changes had a positive impact, leading to the rapid growth in the FMCG industry. Increased availability of retail space, rapid urbanization, and qualified manpower also boosted the growth of the organized retailing sector.
HLL led the way in revolutionizing the product, market, distribution and service formats of the FMCG industry by focusing on rural markets, direct distribution, creating new product, distribution and service formats. The FMCG sector also received a boost by government led
initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the country that witnessed firms moving away from outsourcing to manufacturing by investing in the zones.
Though the absolute profit made on FMCG products is relatively small, they generally sell in large numbers and so the cumulative profit on such products can be large. Unlike some industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass layoffs every time the economy starts to dip. A person may put off buying a car but he will not put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner irrespective of global market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs. The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs.
1.3.2 Household Care Fabric wash (Laundry soaps and synthetic detergents), Household cleaners (Dish/Utensil/Floor/Toilet cleaners),Air fresheners, Insecticides and Mosquito repellants, Metal polish and Furniture polish; the major players being; Hindustan Lever Limited, Nirma and Ricket Colman.
1.3.3 Branded and Packaged foods and beverages Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads, Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola, Sosyo, Cadbury, Pepsi and Dabur.
1.3.4 Spirits and Tobacco The major players being; ITC, Godfrey, Philips and UB
1.4 A Brief Insight - Beverage Industry in India In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers.
Beverages
Alcoholic
Nonalcoholic
Carbonated
Noncarbonated
Cola
Non-cola
Non-cola
The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person. The different ways of segmenting it are as follows: Alcoholic, non-alcoholic and sports beverages. In-home consumption and out of home on premises consumption. Age wise segmentation i.e. beverages for kids, for adults and for senior citizens. Segmentation based on the amount of consumption i.e. high levels of consumption and low levels of consumption.
If the behavioral patterns of consumers in India are closely noticed, it could be observed that consumers perceive beverages in two different ways i.e. beverages are a luxury and that beverages have to be consumed occasionally. These two perceptions are the biggest challenges faced by the beverage industry. In order to leverage the beverage industry, it is important to address this issue so as to encourage regular consumption as well as and to make the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage industry in India are: The quality and the consistency of beverages needs to be enhanced so that consumers are satisfied and they enjoy consuming beverages. The credibility and trust needs to be built so that there is a very strong and safe feeling that the consumers have while consuming the beverages. Consumer education is a must to bring out benefits of beverage consumption whether in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige relevant to the category. Communication should be relevant and trendy so that consumers are able to find an appeal to go out, purchase and consume. The beverage market has still to achieve greater penetration and also a wider spread of distribution. It is important to look at the entire beverage market, as a big opportunity, for brand and sales growth in turn to add up to the overall growth of the food and beverage industry in the economy.
2.1 Introduction
The brand name SOSYO was derived from the Latin word Socious which is related to society. From Socio it gradually evolved in to SOSYO, a distinctive thirst quencher with a unique taste that defies definition and has been relished over generations.
The brand has been given a new, contemporary look ever since its repositioning as a specialty drink in January 2010 with the catchy base line Apna Desh Apna Drink. Besides SOSYO Hajooris has other brands like, Kashmira Jeera Masala Soda, Lemee Lemon, Orange flavor, Ginlim Soda-a gingerly lemon flavor and Hajooris plain Soda.
The various packing includes 200ml, 300ml. in the glass bottles and 350 ml, 500ml. and 1.5 liters in Pet take away and special packing in 300ml. glass bottles pet take away for exports. Hajoori and Sons has over 100 flavors.
2.2 History
The Foundation was laid when a young boy in his teens Abbas Abdul Rahim Hajoori began his career selling aerated drinks made by various British Bottlers. Young Hajoori had the tremendous vision to prove the competence of Indian brands VIS a- VIS foreign brands.
It was this vision that laid the foundation of a new era in the Indian soft drink industry in the form of Hajoori & Sons which later came out with one of the phenomenal brands in IndiaSOSYO.
Since, 1923 saw the foundation of Hajoori& Sons in Surat, Gujarat; but fate did not deem to let the founder enjoy the success. The reins were taken over by Mr. Mohsin Abdul Rahim Hajoori, after the untimely demise of his elder brother. He did not have to look back since then. With the renewed vigor of the next generation, the business reached new heights in the 70s and 80s. Today SOSYO has become a formidable brand and is all set grow further.
2.3 Vision
With A stronger base of over 50,000 retailer outlet, 5 sophisticated manufacturing plants (4 in Gujarat and 1 in Mumbai) seven franchises and over 150 distributors network, Sosyo is now looking for trade to share its vision. Sosyo Now has a vision to grow as a National Brand through Franchising Network with 40 Manufacturing Franchisees all over India.
2.4 Mission
Our mission is to build over selves a full fledge beverages company having an exceptional hold on peoples taste. With is unique and exclusive flavor.
2.5 Exports
Hajoori and Sons is gradually expanding its network to various countries. In our first attempt of expansion, we have established a reputed name in Canada, UK, Australia, and other countries with contract filling in the USA.
Our Brand: Sosyo, Kashmira, Lemee (Orange, Lemon, and Ginlim) and Soda are available in various departmental stores of UAE, and various other cities of UK, USA, Canada, Newzealand and Africa. Very soon franchise will set up plants in the USA, UK, Canada and other countries.
That's why we are proactive in realizing new ideas and encouraging innovation in everything we do. We operate our business in the same way we lead our personal lives. We are honest, open and generous. This is a moral choice - but it is also a commercial imperative. Our
market reputation depends on how we behave. To maintain the trust and confidence of our customers, suppliers, colleagues and employees, we act with integrity at all times. And by acting with integrity, we in turn get the best from others.
We recognize the importance of individuals and value their contribution. We are all team members and yet retain a strong personal accountability - and so we recognize and reward both individual and collective achievement in order to encourage further and greater achievement in the future.
What we offer is full technical support and guidance in erection and commissioning of the plant in selection and training of man power, advertising and marketing support and of course world class specialty products.
Franchisee Network
Sosyo Product - Mumbai Branch of Hajoori & Sons Indian Square Beverages Ahmadabad Giriraj Beverages Rajkot Kanchan Bottling Porbander
2.8 Setups
Hajoori and Sons has a fully automated state- of-the-art plant in Surat, Gujarat. To cater to its demands in every district, cities, town and villages the company has setup plants in Mumbai, Surat, Vadodara, another in Rajkot to cater to surendranagars, Kachchh Ahmadabad, Rajkot, and Porbander. To cater to the demands in the U.S market the company has setup contract filling in 2 major places in the U.S.
2.10 Contact
Hajoori & Sons Plot no 243/244, Bhatpore G.I.D.C., Ichchapore, Hazira Road, Surat, Gujarat-394 510, India Ph. No - +91-0261-2915255/ 2915277 Email: hajooriandsons_sosyo@yahoo.co.in Website: http://www.sosyo-thesoftdrink.com
Helper
Sales Executiv e
Sales Superviso r
Salesman
Engineer
Assistant Chemist
Supervisor
Helper
Labore r
Checkin g
Washing
3.1 Introduction
In Hajoori & sons the main activities in HRM are employee welfare activities, because company believes that if worker are fit, happy, satisfied with company they feel better in working in company and gives best of them. So for that mission company performs many different activities.
Human Resource Management is that part of management which is concerned with people at work and their relationship within the organization. The term Human Resource Management refers to the management of personnel in the organization of any company to achieve the predetermined goal. The duty of the personnel manager is to look after the personnel
department and various functions of the personnel like recruitment, selection, promotion, transfer, etc.
A formal definition of HRM is as follows: Human Resource Management is the planning, organizing, directing and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resources to the end that individual, organization and societal objectives are accomplished.
HR Manager
HR Assistant
Now a day the HRP department of the Hajoori & sons is very busy in the HRP process because it has to maintain the day to day activities of the current unit. Moreover in new manufacturing unit is under construction as company is expanding its manufacturing activities because of the growth of the business. The HRP process is done in the company for various department like in production, sale, finance etc. generally in the company the HRP process contents the documents called STRENGTH REPORT which includes information such as serial no, workers, strength including all unit and staff.
Sources of Recruitment
The company has mainly two type of manpower which is divided into labor work force and managerial staff. The sources of recruitment are broadly categorized into
Sources of Recruitment
Internal Recruitment
External Recruitment
I.
Internal Recruitment
In the internal recruitment the main sources are present employees, employees referrals. The executives, technicians, salesman, loader, etc. are promoted internally so they become internal source of recruitment. Salesman also bring their relatives, friends, etc as the need arise in the company. So it does not require much time and can be done as and when required. The internal source is reliable as they are in direct contact with the company from long time.
II.
External Recruitment
External source of recruitment are also equally used by the company. Here in the company the main external source of recruitment consist of walk-ins, talk-ins, advertisement, and competitors. For the labor work force walk-ins and talk-ins is used. Advertisement and competitor are also used as source of recruitment. The company gives advertisement in the local newspaper and television. The company gives advertisement in the SHIV CHANNEL, DEV CHANNEL. They give advertisement in the local Guajarati newspaper.
A. Selection Selection is the process of differentiating between applicants in order to identify and hire those with the greater likelihood of success in selection process begins with the rise in the requirement of manpower. As there is rise in requirement of manpower the company uses the internal and external source of recruitment. According to the requirement of the post the sources are used. Thereafter the selection is done.
Application Form
Preliminary Interview
Reference check
Final Approval
Selection
3.3.1 Application Form After various sources are used then various application are received. An applicant is required to give full bio-data with educational qualification, experience. Thereafter all the application are scrutinized and thereafter all the applicants are called for the interview process.
3.3.2 Preliminary Interview In the interview process the applicants are judged on different factors as their communication skills, convincing power because the salesman is required to convince the customer when they go for selling, also trustworthiness and honesty is judged because it is mainly cash business, etc.
3.3.3 Reference Check Thereafter the reference check process follows. It is mainly carried out for the higher post i.e. for executives, manager, supervisors, and technicians. For the labor work force all the steps are not followed as they are sometimes recruited informally.
3.3.4 Final Approval The above steps are completed the selection committee than decides as whom- a point. The applicant to be appointed must meet the required standard then and only he can be appointed. The committee takes the decision and gives the final approval.
3.3.5 Selection After the above steps are completed the selection committee then decides as whom to appoint. The applicant to be appointed must meet the required standard then and then only he can be appointed. The committee takes the decision and gives the final approval. The applicant is offered job and fulfilling some legal formality the employee join the job.
In Hajoori & Sons Company, induction training is provided mainly to the employee of the production and marketing department. Here the employees are made to work with experienced employee for two-three day and are provided with all the information needed for efficient working in the organization. They are made to interact with different employees with whom they are to work also with the other employees of the company.
Now a days mostly all the company imparts the training to the fresher although they posses specialized knowledge because training provides the practical knowledge and if the employee is not fresher then also training helps to know the working of the company, its employees and many other things required for the efficient and effective working of the company. Training is one of the best tools for increasing the performance of the employees and overall performance of the company.
In Hajoori & Sons Company training is imparted to the employees but in a particular department only. Most of the trainees are from the marketing department also there are trainees from other department but small in number.
First of all the company identify whether the training is to be given to the employees or not. Here training is provided mainly to the new comer. In the production department when a new plant is installed or when a new technology is adapted then training is given to the laboratory chemist, technicians, engineers and laborers. Even when there is constant reduction in the production the company calls the experts from outside and arrange for seminars and twothree day program. So mainly is provided to the employees of the production and marketing department.
After the training needs are identified then training is imparted. In the marketing department newly appointed employee is sent with the salesman on the companys vehicle. Here the main purpose is to make the employee aware of the route and the customers. Also they are trained as how to communicate with the customer, how to behave, how to convince the customer. They are trained as how to response to the customers complain and their review from the customer about the companys as well as competitors products. This also helps them to solve the problem easily and conveniently. Also the loaders are being trained for efficient loading of the carats and also changing of the bottles from one carat to another so as to minimize the time and also prevent the breakage of the bottle. At the end of the day all the salesman are required to do the sorting out of the bottles so here perfection is needed for transferring of the bottle and minimization of time.
Internal Mobility
Promotion
Transfer
Demotion
3.8.1 Promotion and Transfer As the company is not a huge company and not employment is required, transfer of a particular worker is not possible. Other branches of SOSYO are under development and not yet stood up and this is also the reason for which transfer is not possible.
In the Hajoori & Sons all the decisions related to the promotion, demotion and increment is taken by the owner of the company. In Hajoori & Sons promotion, demotion and increment takes place rarely because here the labor workforce is more.
Promotion mainly takes place of the employees in the production and marketing department. For the promotion, demotion and increment the performance, attendance, attitudes, behavior, experience of the employees are taken into consideration.
Similarly, the promotion is done for all the post of different department of company in the same manner.
3.9.1 Components of Wage and Salary Basic Salary Salesman Rs.6000 per month Loader Rs.150 to Rs.200 per day Laboratory chemist Rs.13000 to 16000 per month
Allowances HRA Rs.3000 Mobile Rs. 800 to Rs.1300 City Outlay Actual Convenience Rs.100 Incentives Based on Performance
3.9.2 Salary Structure Actual basic salary + Provident fund 12% on actual basic salary + Allowance +Bonus TOTAL
NOTE: along with the above Facilities, Pure cold drinking water, Rest Room, Change Room, Refreshment Room, Wash Room, Housing Facilities (Including marchhardani and Gas cylinder facilities).
In Hajoori & Sons they compare the actual performance among the employees and if any employees performance is bad then proper motivation is given to that person and according to this, corrective action are taken.
3.11.2 Corporate Social Responsibility Build a Sosyo circle to reduce the number of accidents, take active part in sponsorship for sports activity, tree plantation program (from Sub jail to Athwa gate to Parle point), other.
Sosyo circle
Firstly various standards are set up considering all the factors. These factors consist of honesty, work quality, job knowledge, attendance, physical condition and health, etc. these standards are then communicated to the employees. For e.g. the salesman is given the target to sell 1200 carats in a week. So before hand the employees are instructed with the standards so they can also put up to the standards.
After the performance standards are established and communicated it is measured. Daily record to attendance and sales by each salesman is kept. Also how much time the leave is taken by the employee, his relation with the customer, honesty, etc. are all taken into in the consideration. Thereafter all the standards are compared with the actual standards. Actual standards achieved are positive as well negative. These standards are discussed with the employees so that they come to know about their strengths and weakness. Also the reason are analyzed and discussed. The reasons for the positive deviation can be going to all the stores in the interior regions regularly at distant place and fulfilling the requirement of the customer thus increasing the sale. Similarly there can be negative reason also. Therefore all the reasons are taken into consideration for the improvement of the employees.
The results of the appraisal are discussed with the employees and deviations in the standards are also taken care of the company takes the corrective action for the improvement in the performance of the employees and also company.
A good job description: Gives clear and easily understandable picture of the job. In details gives all the main tasks of the job the job and how are they performed. Details the guidance and direction received from the supervisor in performed.
With the help of the job analysis and job description, the organization able to list the qualification, experience, special person traits and attributes required in a person to performed a particular job. It helps in matching these characteristic required in an incumbent and the candidate either for promotion for recruitment of outside candidate.
Job Description
Dispatch Manager
Supervison s
Finance Manager
3.13.1 Marketing Manager Mr. Michel George is a marketing manager who handles all over the market. He keeps watch on the sales. He offers new skims to the company. His thinks about how to increase the sales.
3.13.2 Plant Manager Mr. R.M Raje is a plant manager he keep watch on the production activities. He handles all workers of production department. He also distributes wages to the worker. He maintains the plan. He keeps the stock of the raw material. He solves the problem of the workers.
3.13.3 Dispatch Manager Dispatch manager keeps watch on the distribution of carats of bottles.
3.13.4 Finance Manager Finance manager handles all the activities regarding finance.
3.13.5 Supervisors There are different supervisors in the entire department. They keep watch on the company.
3.13.6 Labour Relation And Trade Union There is no trade union as it is a small scale private company. As there is no labor union all the decisions regarding the employees are taken by the company directly interacting with the employees labor relation means the relation between the company and the employee. All the company maintains good relation with the employees and laborer which increases the laborers efficiency. Good relation helps to develop and maintain harmonious relation between the management and labor. Also all the forms of the industrial conflicts are avoided and to ensure industrial peace by providing better working and living standards to workers.
In Hajoori & Sons company good labor relations are maintained with all the employees in all the departments. Good labor relation includes satisfying the employees with the occasional needs. The employee must have job satisfaction of what he does and also from what is being provided by the company. The employees are provided with the occasional leave, also urgent cash withdrawal of small amount. All these points also matter as they develop and maintain the labour relation. All the decisions are taken in confirmation with employees.
3.13.7 Employment Records At the time of joining the organization he or she has to fill up a form and submit in the organization. This form contains the information regarding his personal life, which is stored in computers and is maintained by establishment sectors.
The name, birth date, age, height, weight, power classes, marks of identification, permanent address, nationality, fathers name, married status etc. of the applicant is there. The academic data, percentage obtained in S.S.C, other vocational qualification, past and present employment data, language known, hobbies, interest, information regarding accomplishment, achievement, reference etc. Attach certificate Xerox copy of certificate in support of age, academic qualification, experience, etc.
4.1 Introduction
Production is the process of converting the raw material or the other inputs into the product for the further production or the finished goods or services so at the utility of inputs is created or enhanced and the needs of consumer are satisfied.
Example: the process of converting the raw materials such as water, Sugar, CO2, Crown, Caustic Soda, Syrup, Carmon Color, Citric acid, etc. into finished good(SOSYO).
Production Department
Forman
Engineer
Diploma Holder Expense Holder
Supervisor
Helper
Laborer
Helper
Helper
Checking
Washing
Water
SMC Local Market(shril Kastoor Chand, Ambika Trading, Surat) Marfatia Agency, Surat
Sugar
Carbon Dioxode
Crown
Glass Bottles
Caustic Soda
Carmon Colour
Citric Acid
Pre Form
Raw Material
Washing Stage
Filling Stage
Capping Stage
Filled Inspection
Final Inspection
4.3.2.1 Washing Stage Production process starts with the loading of empty bottles in the washing machine. Before that empty bottles are taken from the carat and are placed on the conveyor which reaches the washing machine bottles are arranged properly and enters the machine in lots of 10 bottles. In the washing machine bottles are passing through 4 compartments. In the 1st compartment all the dust and sand is removed with plain water. In the 2nd compartment the oil, bacteria, etc are removed with chlorine water. In the 3rd compartment bottles gets washed with caustic solution. In the 4th compartment the second time bottles are washed with plain water. After the bottles are washed, they are moved for the next stage.
4.3.2.2 Inspection Stage In the stage, the 2 time bottles are inspected. 1st time the empty bottles are inspected. 2nd time filled inspection is done. If any defect is found then the bottles is disposed and other bottles are allowed to move for the next stage.
4.3.2.3 Filling and Capping Stage The filling and sealing of bottles is done on filling and crimping machine. It is a combined activity. The bottles are conveyed to filler machine on conveyor. The filler machine keeps on revolving. It fills the beverage in the bottles and sends it to crimping machine where the bottles are sealed with a crown. If the operator finds the improper level, he level the bottles manually and let go the bottles for crowning and then for the next stage. 4.3.2.4 Final Inspection Stage After crowning the bottles are checked again whether there is any dirt left. One person checks the bottles after crowning in light. If any impurity is found the bottle is immediately disposed off and rests of the bottles are sends at store.
Here in the production process syrup making machine is used from which smoke comes out so it is placed on 2nd floor. Similarly the brix making machine is also placed near to syrup making machine as this machine produce heat.
The company is in the industrial area so this also effects the plant location. As there are male and female workers and employees there are separated toilets, changing rooms. There is different water cooler drinking cooler in production, administration, office areas.
There is store room for raw material which is underground of production department. There is a separate store area for the finished product at the back side of production area. In the production process co2, citric acid, etc. this gas are dangerous to health so the production area is separated than other department.
As this is mass production unit some decision are taken in advance regarding layout. The production process is machine base so in future if new machine is installed then it requires large space. So all this is taken care.
The company has truck and tempo for delivery the finished goods to the retailers. For these vehicles there is a separate office for finance department, human resource department, and administration office which include reception area.
There are many other general factors which affect the plant location. For e.g. if the plant is located outside the city then the company have to pay octroi for their products, various taxes, arrange for labor transportation facilities, some cottages and house for their living and regular storage of raw material but if plant is located within the city they have to pay less octroi, less transportation expense, 24 hours availability of electricity, easy distribution of goods in less time and availability of raw material.
First it was in Zampa Bazaar but because of problems in transportation and conjunction they shifted their plant in Hazira Road that is in industrial area. In this area they get 24 hours electricity and water facility, availability of material and easy transportation which are beneficial to company.
Plant Layout
Terrace
Refreshment Room/Canteen
Stairs
Syrup Room P i p e
HR Department
Account Department
L i n
Storage Room
4.6.1 Conveyor The company has different types of conveyors to carry the bottles to be processed into different machines. Right from starting of production process the bottles are moved to the next process through conveyor. Company has motor driven conveyor that has one metallic belt on the rolling wheels and those conveyor that works on gravity i.e. no electric motor is needed to run them.
4.6.2 Pipelines Pipeline is also treated as material handling equipment as it carry and gaseous material. It is used to transfer the carbon dioxide from cylinder in the manufacturing unit where it is compressed to make it in the liquid form, then to shift it in the mixer where all the materials are mixed and then the final liquid is prepared separately is brought from the main syrup tank to small tank and then to filler machine through pipeline.
4.6.3 Trolleys Trolleys are mainly used for transferring heavy carats with bottles from the store to the trucks. Also when the carats are unloaded from trucks and moved from one place to another trolley is used. For convenience trolleys are manually run by workers to carry heavy loads.
4.6.4 Carats Carats are a very important material handling equipment as it is used to carry the bottles in the lot of 24. Carats are mainly used for safety purpose so as to prevent the breakage of bottles. So when the bottles are to be taken from one place to another it is kept in carats and then taken. It is also convenient to carry bottle in group.
4.6.5 Trucks Trucks can also be considered as the material handling equipment as it is used for transporting finished products. They carry carats from manufacturing place to the whole sellers and retailers and also to the port for the export through steamers in the foreign countries.
4.7.1 Material Receipt Procedure Material receipt procedure begins when the purchase order is placed. The suppliers send the material within a day or two. Thereafter the material is received and the production manager is informed. The material received is checked whether it is according to the purchase order. Firstly the quantity checking is done. Thereafter the quality control manager checks the quality of the material received and gives information. Sometime there can be material which cannot be taken for production because its poor quality.
After the confirmation is received from quality control manager, entries for both accepted and rejected material is done in the register and thereafter all the material is send to the store. Accepted and rejected material is stored separately. As and when material is requires for production it is issued and according the entry is done, rejected material is send back to the supplier and is replaced. Production manager takes the bill does the signature and after all the process gets completed payment is done.
4.7.2 Material Issue Procedure The material issue procedure begins with requirement of production in change. Production in charge tells the production manager the authorized person and thereafter allows the issue of material. The entry for the material issued is made in the register and that much stock is deducted from the present stock of materials.
On receiving all the material from the supplier, all the material passes through the process of quantity & quality. After all the material is accepted by the production manager then and then only the payment is done. Payment is done by cash, cheques or by demand draft. Some suppliers demand the payment along with the purchase order. So, demand draft is send along with the purchase order to the suppliers.
For example If 50 carats of Sosyo are sold on particular days then manager dont start the plant to take production of 50 carats. So he does the stock of 200 to 300 carats of a particular product and then does the production. The same is followed for the other entire product (Kashmira, Lemee, Soda, etc.) here the production is done in batch using manner and each batch contains minimum of 200 carats but in exception case it can be low. Also if there is any additional order (party order, marriage order, inauguration order etc.) on the basis of this production plan is prepaid. Such orders are also important because it is in the big lot.
H2O
pH
Th Ca Mg Cl Alk Cl2 TDS Alk
4.10.3 Ready Syrup Quality Checking Ready syrup includes the following parameters:
Standard
Sugar Purity
It includes proper syrup making method, Pasteurization System, Flavor Wise Mixing.
10.4 Bottle Washer One of the goals of quality control is to present the consumer with a product and for that clean and sanitized bottle also plays an important role. Hence proper washing must be ensured with the appropriate testing which includes:
Caustic Strength
Temperature
Addictives Percentage
4.10.5 Finished Product Quality Checking Finished product includes product checking and packaged quality checking. Once the bottles are filled in the carats it becomes the finished product. Product quality checking includes following parameter:
Brix
Co2 Consumption
Crown Crimping
Fill Height
Cartoons
Attractive Packing
In large companies, the inventory consists of thousands of items and a number of employed to control them. Their salaries and other expenses run into lakhs of rupees. It has been found from experience that all items include in inventory are not of equal importance. Hence, more attention must be devoted to the control of such items. All items are divided into 3 parts.
A-class of items: In the A class of item the major material consist of 65% of the consumption value and 25% of total number of items. This item requires strict control over receipt, storage and issue should be exercise over such items. As A class of items require very less time for inventory but the company maintains low stock of inventory for all items. The A class of the item includes Sugar, Citric Acid, Sodium Benzoate used in beverage and CO2 used only in Soda. All these items have major value wise contribution. So are including in A class of item.
B-class of items: In the B class of items the major material consists of 25% of consumption value and 20% of the total number of item. It includes ascorbic acid (Vitamin C), Oil Grease, Lubricants, Spare Parts of machine and maintenance cost. C-class of items: In the C class of item the major material consists of 10% of consumption value and 55% of the total number of item include essence (Taste, Color, and Ordure), Water, Crown and other consumption items.
The term finance is used synonymously with money. In organism composed of number of separate activities, each working for its own end but simultaneously making a contribution to the system as a whole, some force is necessary to bring about direction and co-ordination of economic activity and facilitate its smooth operation.
Finance Manager
Cashier
Accountant
Auditor
5.3.1 Factor Affecting For Working Capital in Hajoori and Sons Are As Under
Seasonal And Cyclical Fluctuation Sales depend on the demand condition. Hajoori & sons experience seasonal and cyclical fluctuation in the demand for their products. These business variations affect the working capital requirement specially the temporary working requirement of the firm. So when there is boom, sales increases and firms investment in inventories and debtors will also increases and vice-a-versa in depression.
Very Less Credit Period The company sells the goods mainly on the cash and cheque basis. The company offer very less credit period of 1 to 2 weeks. So the investment in debtors is less. This also affects the working capital requirement.
Credit Period For Suppliers The credit period available to the company varies from suppliers to suppliers. Hajoori & Sons buys some goods on cash and some cash on credits. Some suppliers ask for the draft along with the purchase order while some supplier gives the credit period, for suppliers 30 to 45 days.
Fluctuation Of Raw Material Price Price level change affects the working capital requirement. Hajoori & Sons is Company just in time inventory system. So when there is rise in the price of the raw material the company has to pay for it as far it as whatever the price may be.
Accruals The major accruals items are wages and taxes. These are simply what the firm owes to the employees and to the government. In Hajoori & Sons wages are paid for fortnightly. Income tax and all other taxes are payable half yearly and yearly. Accruals wages and accrued taxes are also source of finance.
Trade Credit The most common utilizing source is trade credit. Trade credit represents the credit extender by the supplier of the goods. It is a spontaneous source of finance in the sense that it arises in the firm is considered creditworthy bt its suppliers. It represents 25% to 50% of short term financing. The period granted by its suppliers is 30 to 40 days.
Term Loan Company considers term loan as term financing. It generally relies on this type of financing. This represents a source of debt. Term loan is generally repayable in one year. The company uses it to finance acquisition of fixed assets and working capital margin. This benefit the company reducing its cost as its interest payments are tax deductible for the company. They are generally for specified period of time. The company can refund the debt when its financial position becomes sound. The major lenders are investor, trust etc...
Marketing manager favors to keep high levels of finished Goods so the availability of product is ensure if there is fluctuation of demand. On the other hand, finance manager wishes to keep average stock because according to him, inventory blocks the money and which does not earn interest.
5.4.1 ABC Analysis Usually a firm has to maintain the several types of inventories. It is not desirable to keep the same degree of control on all the items. The Hajoori & Sons play the maximum attention to those items whose value is highest. The company therefore identity which item should be receive the most effort in controlling. It uses the analytical approach, which is called ABC analysis.
In large companies, the inventory consists of thousands of items and a number of employed to control them. Their salaries and other expenses run into lakhs of rupees. It has been found from experience that all items include in inventory are not of equal importance. Hence more attention must be devoted to the control of such items. All items are divided into 3 parts.
A-Class of Items In Hajoori & Sons the inventory covered 70% of total cost included in A group: Sugar Carbon Dioxide Citric Acid Sodium Benzoate
B-Class of Items In B class of items the major material consists of 25% of consumption value and 20% of total number of items. It includes: Ascorbic Acid (Vitamin-C) Oil-Grease Lubricants Spare-Parts of Machine
C-Class of Items In the C class of items the major materials consists of 10% of consumption value and 55% of the total number of items include: Assense (Taste, Color, Ordure) Water Crown
To Marketing Department Marketing department requires some amount of funds to pay various kinds of expenses occurred during the sales and promotion of project. Mostly marketing department requires the funds flow for the following Expenses: Promotional Expenses Salas Commissions Advertisement Expenditure Labeling & Packing Cost Distribution Cost
The finance department of the company provides funds for all of the necessary expenses. Except this it also advises the marketing department for the efficient utilization of the funds.
To Hr Department HR department requires money to pay to the personnel working for the organization. HR department requires funds mostly to pay salaries and other administrative expenses the HR department gets provided the following expanses. Salaries And Wages Bonus And Other Incentives Welfare Expenses Training And Development Cost Of Personnel Some Other Expenses Related To Personal Of Organization
Every year good amount of funds is invested into the HR assets. The company believes that the personnel of the organization are assets for them. And so the good amount of funds should be invested on them so as to get higher returns.
To Production Department Production department requires comparatively large amount of funds them other departments of the company. The production of the product and its process requires huge amount of funds. The expenses occurring into the production department are as follows. Production Cost Purchase Raw Material Purchase Of Plant And Machineries Factory Cost Labor Cost Fixed Over Heads
The expenses of the production are much higher so the finance department keeps an eye on expenses occurred and try it cut down the product costs to get larger margins of product.
5.6 Balance Sheet of Hajoori & Sons as on 31st December 2010 and 2011 Particular 2010 Sources of fund Capital Reserved and surplus Loan funds Unsecured Loan Tax Deposits: From customers From FLV Ltd. Total Application of fund Fixed Gross block Less: Dep. Less: lease terminal Adj. A/c Net block Capital work in progress Capital inventory Asset Held For disposal Investment Current assets loans & Advances Inventories Sundry debtors Cash & Bank Loans & Advances Total current assets Less: C.L & Provision Current Liability Provision Total Current Liability Net Current assets Misc. Expense Total 128250 3308214 529800 411901 637845 38692 5054702 Year 2011 272250 4006677 29400 476901 826313 38692 5650233
4831499 1224392 118859 3488248 349681 122859 9130 1500927 56369 401814 73494 148680 680357 926110 226946 1153056 -472699 56556 5054702
5672928 1516907 118859 4037162 6737709 376082 9130 786226 86275 771123 70262 231395 1159055 1146138 277621 1423759 -264704 32628 5650233
5.7 Income Expenditure Accounts of Hajoori & Sons as on 31st December 2010 and 2011
Particular 2010 Sales (Gross) Less: Returns Net sales Less: COGS Materials Consume Personal expenses Revenue expenses Total Gross profit Less: operative expenses Operating & other expenses Depreciation Net operative profit Add: non trading income Less: non trading expenses Financial charges Profit before taxes Less: tax expenses Profit after taxes 29126 1035318 401387 1960759 418856 218000 1150558 183886 4138385 209523 24407 4372315 1787414 6205188 45459 6159792
Years 2011 8359098 99820 8259278 5969105 279958 23928 6272991 1986287 564003 296085 1126199 187944 30191 1238952 395000 2570322
5.8 Comparative Balance Sheet of Hajoori and Sons as on 31st December 2010 and 2011
Particular
Year 2010
2011
Comparative Statement Absolute Relative Change Change 144000 698463 -500400 65000 188468 0 595531 112.28 21.11 -94.45 15.78 29.55 0.00 11.78
Sources of fund Capital Reserved and surplus Loan funds Unsecured Loan Tax Deposits: From customers From FLV Ltd. Total Application of fund Fixed Gross block Less: Dep. Less: lease terminal Adj. A/c
4831499 5672928 1224392 1516907 118859 118859 4037162 6737709 376082 9130 786226 86275 771123 70262 231395 1159055 1146138 277621 1423759 -264704 32628 5650233
841429 292515 0 548914 6388028 253223 0 -714701 29906 369309 -3232 82715 478698 220028 50675 270703 207995 -23928 595531
17.42 23.89 0.00 15.74 1826.82 206.11 0.00 -47.62 53.05 91.91 -4.40 55.63 70.36 23.76 22.33 23.48 -44.00 -42.31 11.78
Net block 3488248 Capital work in progress 349681 Capital inventory 122859 Asset Held For disposal 9130 Investment 1500927 Current assets loans & Advances Inventories 56369 Sundry debtors 401814 Cash & Bank 73494 Loans & Advances 148680 Total current assets 680357 Less: C.L & Provision Current Liability 926110 Provision 226946 Total Current Liability 1153056 Net Current assets -472699 Misc. Expense 56556 Total 5054702
5.8.1 Comparative Income Expenditure A/C of Hajoori & Sons as on 31st December
2010 and 2011
Particular 2010 Sales (Gross) Less: Returns Net sales Less: COGS Materials Consume Personal expenses Revenue expenses Total Gross profit Less: operative expenses Operating & other expenses Depreciation Net operative profit Add: non trading income Less: non trading expenses Financial charges Profit before taxes Less: tax expenses Profit after taxes
Years 2011 8359098 99820 8259278 5969105 279958 23928 6272991 1986287
Comparative Statement Absolute Change 2153910 54361 2099549 1830720 70435 -479 1900676 198873 Relative Change 34.71 119.58 34.09 44.24 33.63 -1.96 43.47 11.13
Revenue Statement Ratios Gross Profit Ratio Operating Ratio Net Profit Ratio Stock Turnover Ratio
Balance Sheet Ratios Current Ratio Liquid Ratio Quick Ratio Proprietary Ratio Gearing Ratio Long Term Debt Ratio
Interpretation Gross Profit Ratio shows the profitability of the company. Companies gross profit ratio in the year 2010 is 29.02% and in year 2011 it is 24.05%.
2. Operating Ratio
Interpretation Operating Profit Ratio indicates the operating performance of the business. Operating Ratio in 2010 is 82.78% while it reduces to 78.86% in 2011.
Particular
16.81%
Interpretation Net Profit Ratio shows the overall profitability of the company. The companys net profit ratio in 2010 was 19.81% while it is reduces to 15% in 2011.
Interpretation Stock Turnover Ratio in 2010 was 13.57 times which increases to 13.95 times in 2011.
The C.R is the traditional ratio used to measure company liquidity. It is designed to assist the decision maker in determining a firms to pay its current liabilities. The higher current ratio indicates the greater ability of the company to meet its immediate financial obligations.
Particular
Current Ratio
0.59 : 1.00
Interpretation Current Ratio shows the ability to repay short term commitment promptly. In year 2010, Current ratio is 0.59: 1.00 and in year 2011, it is .081: 1.00. From the above we can say that companys current ratio is increased in 2011.
2. Acid-Test Ratio
Particular
Acid-Test Ratio
0.26 : 1.00
Quick acid = Current assets Debtors Stock Liquid Liabilities = Current Liabilities Bank over draft.
Interpretation Acid Test Ratios showing in year 2010, 0.23:1.00 and in year 2011, it is 0.20:1.00. From the above we can say that companys acid test ratio is reduce in year 2011.
3. Proprietary Ratio
Particular
Interpretation Proprietary Ratio showing in year 2010, 0.61 and in year 2011, it is 0.59. From the above we can say that companys proprietary ratio is reduce in year 2011.
Particular
Interpretation Showing in year 2010, 0.32 and in year 2011, it is 0.28. From the above we can say that companys debt equity ratio is reduce in year 2011.
Particular
The marketing concept holds that the key to achieving its organizational goals consists of the company being more effective than competitors in creating, delivering and communicating superior customer value to its chosen target market.
Marketing Manager
Sales Executive
Sales Supervisor
Sales Men
Promote Sales
6.4.1.1 Demographic Environment Marketers are keenly interested in the size and growth rate of population in cities, regions & nations; age distribution and ethnic mix; educational levels; household patterns; and regional characteristics and movement, because people make up markets. Similarly Sosyo also keeps a close watch on the population, the growth rate of population in cities and in rural areas and also age which plays an important role in the demand of the product.
6.4.1.2 Economic Environment Marketers require purchasing power as well as people. The available purchasing power in an economy depends on current incomes, savings, debts and credit availability. Similarly Sosyo considers the incomes, Savings, debts and credit availability of the consumers. Hence, depending on the type of the market in a particular area, marketing is done accordingly.
6.4.1.3 Natural Environment Marketers need to be aware of the threats and opportunities associated with four trends in natural environment: the shortage of raw material, especially water; increased cost of energy; increased pollution levels; and the changing role of governments. In the same way Sosyo is also aware of the threats and opportunities which are associated with the trends in natural environment.
6.4.1.4 Technological Environment One of the most dramatic forces shaping peoples lives is technology. The marketers should monitor the following trends in technology: the pace of change, the opportunities for innovation, varying R&D budgets and increased regulations. Such of the above trends in technology have been given greater importance Sosyo.
6.4.1.5 Political-Legal Environment Marketing decisions are strongly affected by development in the Political and Legal Environment. This environment is composed of laws, government agencies and pressure groups that influence and limit various organizations and individuals. Marketing decisions in Sosyo are made according to the development in these political and social environments.
6.4.1.6 Social-Cultural Environment Society shapes our beliefs, values and norms. People absorb, almost unconsciously, a worldview that defames their relationships to themselves, to others, to organizations, to society and to the nature. Sosyo also has to face the social-cultural environment. The existence of subcultures, shifts of secondary cultural values through time, etc are observed.
Hajoori and Sons is a soft drink company. It is medium scale company. The company serves to middle class people and also to some of the upper class people. The company is not serving only to some stores with which it has strong relationship quality and price. The company serves those two need both quick and sudden delivery and services. The company gives equal importance to large and small orders. The company serves to risk avoiding customers. The company is serving to those who are loyal enough to their supplier and customers.
If the customers need the goods urgently, they contact directly at the company through telephone. They specify the quantity of brand they need, place to deliver, data and time of delivery, etc also the order of marriage, party, inauguration, meeting etc is taken. If any customer has to give a large order, they give order before 2-3 days so that company can manage efficiently. The customer checks the order and verify and signature of the customer is taken on the sales bill. So in such manner customer orders are processed.
6.8.1 Product With success in soft drink markets, Hajoori & Sons has developed into a full spectrum Soft Drinks Company with a variety of products. We dont call these as mere products but tastes of people. Our products are:
1) Sosyo The oldest and one and only all Indian fizz drink. For decades, it has retained its unique taste and rules hearts of millions. Sosyo is the only indigenously made soft drink in India. People feel Sosyo tastes like alcohol, but it is not. Sosyo is a cider-type fruit drink made of heady apple and grape cocktail that packs quite a punch when has absolutely chilled.
Its a non- cola its different having a unique taste. Its a mixed fruit flavor.
2) Kashmira Soda Jeera masala soda is very popular among people as a digestive drink has a different satisfaction after a heavy meal. Kashmira is traditional Indian Spicy flavor having many spices. It has an Authentic -Ethnic, Taste which also helps indigestive. Digestive hub), especially with people who eat rich, oily and spicy foods.
3) Lemee There are 2 flavors available in Lemee soft drinks which are
Lemee Logo
Lemee Orange Lemee Orange with orange tangy Flavor, its cool Tangy Soothing
Lemee Misty Lemee Misty a cloudy lemon-n-lime flavored a good thirst quencher contains vitamin C good for health.
4) Hajoori Soda The soda with extra sparkle, extra bubbles, extra power-refreshing on its own, great in company.
In a nutshell, its (Sosyo) product can be described as SOSYO: a unique combination of natural ingredients-a great taste sensation; LEMME MISTY: a tangy lemon-n-lime flavored thirst quencher with vitamin C; LEMME ORANGE: with orange flavor, soft and cool; KASMIRA: the only Masala Soda-a spicy appetizer-cum-digestive.
6.8.1.2 Packaging Packaging is defamed as all activities of designing and producing the container of the product. Most of the packaging includes up to three levels of materials. People at Sosyo believe that packages can build brand equity and drive sales. The packages are buyers first encounter with product and it must be capable of turning on or off. Packaging also affects the consumers later product experiences.
Sosyo soft drink comes in a bottle, which is the primary pack. In case of the local distribution the bottles are being sold directly but for the outside sales it comes in the crates and each crates contains 24 bottles. The bottles are packed by pressurized crowns. And in the case of overseas sales they use cardboard box. And each cardboard box contains 12 bottles. This cardboard box is packed into the corrugated box containing six dozen boxes.
The use packages with the attractive graphics and logos showing the product information and specialized features so that the customer can pick the product according to his needs. The packages also contain some special trademarks and copy righted logos so the initiators cant copy the product. The brand and logo of Sosyo is as shown under: The various packaging include 200ml; 500ml; 300ml in glass bottles (returnable) and 500ml and 1.5ltr in PET segment (non-returnable).
6.8.1.3 Labeling Label may be a simple tag attached to the product or an elaborated graphic that is part of package. It might carry only the brand name, or a great deal of information. Even if the seller prefers a simple label, the law may require more.
According to the marketing manager of the Sosyo the labels are important tools to market their product in the following ways. It identifies the product and the brand name SOSYO It grades the product in several categories. It describes the special features of the product.
Sosyo uses plastic labels to promote the product. They use this label for the PET bottles and for glass bottles they use printed logo of Sosyo as the brand label.
Brand Sosyo The brand name SOSYO was derived from the Latin SOCIOUS meaning that is related to society. From SOCIO it gradually evolved into SOSYO, a distinctive thirst quencher with a unique taste that defines definition and has been relished over generation.
Originally Sosyo was called WHISKY NO, to attract alcoholics in the dry state of Gujarat, India. It was sealed with a marble in a factory in Salabatpura by Hajoori & Sons. The present name was derived from Latin word Socious, since it became a social drink. The name Whisky No was derived from the fact that Sosyo tastes like alcohol.
The brand has been given a new, contemporary look ever since its responding, as a specialty drink in November-98 with the catchy base line THE TASTE WITH THE TWIST.
6.8.2 Price 6.8.2.1 Pricing Policy Deciding the pricing policy is an important decision in any organization. As usual every firm sets the price for its product or service whether it is manufacturing or service firm. Financial managers with the help of the production and other department set up the price. Generally pricing policy is decided after considering several factors.
Here, variable costs are raw material cost, administration cost, packing cost and distribution cost. Here, fixed costs are processing cost and machinery cost.
6.8.2.2 Price Setting Prices are set by input valuation, considering production activity cost, cost of raw material, buffer margin, other cost and profit margin. Sometimes due to uncertainty in sugar prices, transportation cost, etc. costs also increases. To avoid such situation, the company keeps a margin on its product prices before adding profit margin.
A lot of research regarding prevailing price of the product in market is done. Before deciding price of the product, competitors price and offers also considered.
For example, on 500 ml bottle of Sosyo, 100 ml free. Once the company enters the competitors area a long chain of customers is established.
Company offers discount to customers if they are competitors customers having a very good relationship with the company. Price discount are based on sales volume i.e. number of bottles a customer or agent or shopkeeper purchases. There is no fixed discount percentage decided. Prices are mostly very stable. Frequent fluctuation does not occur, as it is a competitive market. If a price of raw materials such as sugar increases, the company does not increase its final price in spite of margin are reduced.
Customers need to advance before hand and remaining payment on the delivery of the bottles. In case of good reputation of customers, the payment is delayed for a certain period decided by the director. Hajoori & Sons give 15% credit period. The company holds a very stable pricing policy with frequent fluctuations.
Wholesale Price Name\ml Sosyo Kashmira Lemee Hajoori Soda 200 ml/crate 156 132 132 300 ml/crate 204 204 204 84 500ml/box 460 460 460 240 1.5 ltr/box 360 360 360 189
Retail Price Name\ml Sosyo Kashmira Lemee Hajoori Soda 200 ml 8 8 8 300 ml 10 10 10 5 500 ml 22 22 22 12 1.5 ltr 45 45 45 25
From this price policy of company the retailers gets more profit around 1.5rs from each price of any soft drink of Hajoori & Sons; which is quite good compare to other competitors.
6.8.2.4 Competitors
Hajoori & Sons Sosyo Kashmira Lemee Hajoori Soda Sosyo Soda
COMPETITORS PRICES
PepsiCo
200 ml (24) 300 ml (24) 500 ml (24) 1.5 Ltr (12)
Coca-Cola
200 ml (24) 300 ml (24) 500 ml (24) 1.5 Ltr (12)
Goldi
200 ml (24)
50 96 96 50 50
Heman
200 ml (24) Limey Orange Misty Masala soda 96 96 96 96 300 ml (24) 144 144 144 144
The figure mentioned in bracket along with the size is the number of bottles in each carat.
The margin given to the retailer is 50ps to 75ps by the multinational company and the local company gives 75ps to 1 Rs. The salesmen are given commission of 1.50 Rs. on selling of each carat. Even the distribution channel of the competitor company is more or less same as this company.
6.8.3 Place Channel of distribution is the chain through which the product of the company passes from factory to final consumer so marketing channel performs the work of moving goods from purchaser to consumers. Different companies are using different channels. It overcomes the time, place and possession gap that separates goods from services for those who need or want them. The company should have the flexible channel for distribution so that in future it can be easily changes according to the requirement.
A marketing channel performs the work of moving goods from purchaser to customers. It overcomes the time and possession gap that separates goods and services for those who need or want them. The distribution channel of Hajoori & Sons in Surat city and parts of Gujarat state is undertake by J.S. Distributors. They gather information about potential and current customers, competitors and other factor and forces in the environment. They develop and distribute persuasive communications to stimulate purchasing. They reach agreement on once and others terms so that transfer of ownership or possession can be affected. They place orders with manufactures. They acquire the funds to financial inventories at different levels in the marketing channel. They assume risks connected with carrying out channel work. They provide for buyers payment of their bills through banks and other financial institutions. In communication channel they deliver and receive message from their buyers and in service channel transaction is carried out with potential buyers. The channel of distribution in Hajoori & Sons is of one-level channel. In one-level channel there is 1 only one intermediary, the retailer. This is the best channel level to sell the products in the rural markets.
Structure of Place
Manufacturer
Distribution
Distribution Channel
Retailer
Consumer
6.8.3.1 Distribution Network Channel of distribution is the chain through which the product of the company passes from factory to final consumers. For reaching target market various companies uses various kinds of channel of distribution shows how faster, easier, cheaply and with minimum risk the product reaches to the final consumer. The company should have flexible channel of distribution so that in future it can be changed easily according to requirement. Company uses three particular channels to reaches their target market.
1) Communication Channel In communication channel they deliver and receive message from their target buyers. If any party order or bulk order occurs then it receives through telephone and fax also. They also receive their suggestion and follow if any important needed.
2) Distribution Channel Company uses distribution to display sell or deliver the physical products or service to buyer or user. They include distributors, retailers and franchises. Thus, it records whole concept of distribution channels in Hajoori & Sons.
Zero Level Channels This is also called direct marketing channel. It consists of a manufacturer selling directly to the final consumer. Here company selling their products door to door. Here no intermediaries between the manufacturer and consumer. Bulk orders are following under 0-level channel.
One Level Channel A 1-level channel contains one intermediary such as retailer. Here company gives their product to retailers and through retailers it goes to final consumers.
Two Level Channel (Export Channel) 2-level channels contain 2 intermediaries. In this type of channel franchisee and retailer are two intermediaries. Company keeps their franchises in different place and sells their product to retailers, through retailers it goes final consumers.
0Level
1st Level
2nd Level
Manufacture
Manufacture
Manufacture
Retailer
Franchisee
Consumer
Consumer
Retailer
Consumer
The company follows three types of distribution channel as 0-level, 1-level and 2-level channel. In the 0-level channel the companys salesman directly sells the product to the consumer at their home. In the 1-level distribution channel the salesman sells the products to the retailer who thereafter sells to the end consumer. Here the salesman daily goes to the retailer and consumer at their shops and home according to the routes.
In 2-level distribution channel the companys product is exported to the franchisee holder in Dubai, Sharjah, Abu-Dhabi and various other cities of UAE, Lila, UK, USA, New Zealand and Africa who thereafter sell to the retailer and to the end consumer. For Hajoori & Sons, this is best because everything is managed by the company itself. As selling is done directly, the company have its own salary paid and trained salesman at every place.
3) Service Channel Hajoori & Sons also uses services channels to carry out transaction with potential users. This service channels include warehouses, transportation, companies, banks, insurance companies that facilitate transactions. Company also accepts cheques, draft from the potential buyers.
6.8.4 Promotion Promotion refers to sales promotion, advertising, Sales force. Public relation, direct marketing, advertising is any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. All the soft drink Co. does advertising according to their suitability. Hajoori & Sons does advertising in the form of Newspaper ads, ads in magazine, Ads on TV channel, etc. The multinational Co. does satellite TV ads with celebrity, Newspaper, magazine ads, Banners, Hoardings, etc. The local brands does give ads in newspaper, magazine. Etc.
Hajoori & Sons has made Sosyo Circle on Udhna Magdalla road for the purpose of promoting their products. Also the Co. offers some free sample when they launch a new product in the market. Even the multinationals offers a variety of short term incentives to encourage trail or purchase of a product.
Hajoori & Sons organized and sponsor some events like Blood donation camp, Sports Day program. Even the multinational Co. sponsor the Awards program, reality Shows on TV, etc. For the purpose of direct marketing all the companies have their web-sites, E-mail id, and telephone no. to contact or communicate directly with or solicit response or dialogue from specific customers and prospects.
Banner advertising
Promotional & Advertising Policy Hajoori & sons faces lot of competition. Each day the customers requirement, the taste of the customer is changes. Although the company is very much old in the soft drink industry, it has a promotion and advertisement to sells its product.
The company is using many policies to promote their product. They promote by advertising in daily local newspaper such as Gujarat Mitra, local cable channels like city link, hind channels, Samay channels and Eye witness. Now a days company is giving their products advertising on the radio.
To promote the product the in any competitive market, any company has to establish good relationship with the market and keep in touch with their respective industry such as soft drink manufacturer has to be in touch with their industry. So the most effective way to promote their soft drinks is by participating in exhibition or any fairs. They also promote their product in local or national fairs like fairs in Surat, fairs in Bombay. Sosyo circle at the Udhana Magdalla road is also one of its promotional activities. They also promote their soft drink by supplying their soft drink in various international conventions held in Surat like Giant club meeting.
Necessary information about different product is also on the companys website www.sosyo-thesoftdrink.com. They can interact and get information by sending e-mail also.
The company also gives credit period to the customers after sales. They provide 5 days credit period to their customers and 15 days credits period to their suppliers. The company has the objectives of efficient performance and excellent quality which holds the good will of company in promoting it. Company has led customer satisfaction as its foremost priority. It also gives guidance to its customers if they are new to it. Thus a strong promoting policy is backing the company.
For export advertising and promoting company use special type of packing to attract customers and expense some money to make attractive labeling. Sometimes company gives banners to their customers for advertising. In the interior region outside all the customers Shop Company has done wall painting promoting various brand of the company.
Hajoori & Sons actively participate in a number of occasions ranging from Charity Shows, Educational Activities and various other social activities.
As a part of companys brand promotion program and good corporate citizenship, company regularly organize various contests and events such as Sosyo cricket tournaments in which various teams from entire south Gujarat participate, Power-building competitions, Painting competitions at school level, and various others.
Sosyo has been active in sponsoring Navratri Dances The heartbeat of Gujarat
Conclusion
Strengths They had variety of product so it is easy to capture the attention of the customer by one or another product. They had a very strong distribution network. They are successfully lunching there product in foreign countries like Dubai, UK, UAE. Good relation with customer. Efficient staff.
Weaknesses
Weak advertising in large scale Uneducated labor force Old process machinery though they are efficient but new technology may reduce their cost Too much attraction with the labor force allow some times increase per unit cost and reduce efficiency
Opportunities
To grow as international brand To cover entire rural area of Gujarat To develop franchise outside of Gujarat
Threats
Product demand in children Product demand in urban area Control over the franchise outside of Gujarat
Suggestions
To increase the sales volume in urban areas. To employ more workers to make the production process quickly To give more importance on promotional activities To provide more schemes to increase the sales Price should be reasonable and make competitive price from other competitive product Do fast delivery and regular supply to customer
Bibliograph
Reference books:
1) K Ashwathappa and K Shridhara Bhat, Production & Operation Management 2) S A Chunnawala and D R Patel, Production & Operation Management 3) N G Nair, Production & Management 4) S A Sherlekar, Marketing Management 5) Kotler, Koshy, Keller and Jha, Marketing Management 6) C B Gupta, Human Resource Management 7) K Ashwathappa, Human Resource Management 8) C B Mamoria, S V Gankar, Human Resource Management 9) Khan & Jain, Financial Management 10) I M Pandey, Financial Management
Web Sites:
1) www.sosyo-thesoftdrink.com 2) www.wikipedia.com 3) www.google.co.in
Annexure
(Balance Sheet of 2010 & 2011 of Hajoori & Sons)
Particular 2010 Sources of fund Capital Reserved and surplus Loan funds Unsecured Loan Tax Deposits: From customers From FLV Ltd. Total Application of fund Fixed Gross block Less: Dep. Less: lease terminal Adj. A/c Net block Capital work in progress Capital inventory Asset Held For disposal Investment Current assets loans & Advances Inventories Sundry debtors Cash & Bank Loans & Advances Total current assets Less: C.L & Provision Current Liability Provision Total Current Liability Net Current assets Misc. Expense Total 128250 3308214 529800 411901 637845 38692 5054702
4831499 1224392 118859 3488248 349681 122859 9130 1500927 56369 401814 73494 148680 680357 926110 226946 1153056 -472699 56556 5054702
5672928 1516907 118859 4037162 6737709 376082 9130 786226 86275 771123 70262 231395 1159055 1146138 277621 1423759 -264704 32628 5650233
Particular Sales (gross) Less: Returns Net sales Less: COGS Materials consume Personnel Expenses Revenue Expenses Total Gross Profit Less: Operating Expenses Operating & other expenses Depreciation Net Operating Profit Add: Non trading income Less: Non trading expenses Financial charges Profit before taxes Less: tax expenses Profit after tax 29126 1035318 401387 1960759 418856 218000 1150558 183886 4138385 209523 24407 4372315 1787414 2010 6205188 45459 6159729