Professional Documents
Culture Documents
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.
of the bottle.
1952:-The first diet soft drink sold called the "No-Cal Beverage" agingerale sold by
Kirsch.
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.
Personal Care
Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and
Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the
major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur
and Procter & Gamble.
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
Spirits and Tobacco The major players being; ITC, Godfrey, Philips and UB
NCAB
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Fig 1.1 Beverages in India
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:
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.
Customer satisfaction is our sole motto. Our definition of customer includes every person
who comes in the business with us. We understand that our market and our industry are fast
changing and we accept that change brings the opportunity to grow and improve.
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
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
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.
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To maintain good relationship with other organization.
To carried out administrative activities like transport & security.
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.
Recruitment is the process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organization.
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
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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.
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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.
3.3.5 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.
environment. Organizations are known to spend few days or weeks for induction training. It
is known that employees feel anxious on entering the organization. The employees worry
about their performance on the new jobs.
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.
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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.
Allowances
HRA Rs.3000
Mobile Rs. 800 to Rs.1300
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.
The workers and the staff in SOSYO works together like a family. Special attention is also given on
the workers. If a worker meets with an accident in or outside the company, the company takes the
responsibility to cure the worker from the accident by admitting him/her in the hospital. All the
expenses are incurred by the company during the workers treatment.
Sosyo circle
3.12 Performance Appraisal
Performance appraisal is also an important part of the human resource management as it
encourages, boost the performance of the employee which overall improves the performance
of the company. So performance appraisal is carried out in almost all the company because it
is not only for the benefit of employee but also for company.
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.
and the personal traits required for the performer. Job analysis and Job description are having
overlapping characteristics. However, while the job analysis is basically collection
information about how the job is performed, the next step the job description.
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.
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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.
3.13.5 Supervisors
There are different supervisors in the entire department. They keep watch on the company.
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.
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.
Adequate and clean washing facility separately for males and females.
Medical aid to worker and employees.
First aid box to all transport vehicles.
Lockers and sanitary latrines separately for males and females.
Clean drinking water facility.
The company also carried out some special welfare activities.
Once year picnic arranged by the company for the employees.
Blood donation once in year.
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).
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Fig 4.1 Structure of Production Department
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4.3
Production Process
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.
business requires certain minimum volume. Therefore it is big layout. So the number of
people required, machine required will be large.
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
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
Common Hall
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HR Department
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The company uses different types of material handling equipment like Conveyors, Trolley,
Pipelines, Carats and Trucks. It can be further explained as below:
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.
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.
Purchase function begins with the preparation of purchase order. Production manager
prepares this purchase order. This purchase order is to the authorized person for checking.
After the authorized person sign the purchase order, order is placed though mail, telephone or
by fax. After receiving purchase order from company supplier checks it with the availability
of material and sends the material within a day or two and informs the company on sending
the material.
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.
Quality control includes various method of controlling the quality of the product. They are as
under:
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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:
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In Hajoori & Sons, ABC Analysis technique is used for controlling the inventory. Usually a
firm has to maintain the several types of inventory. 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 companies therefore identify which item should receive the most
effort in controlling. The firm is selecting and its approach to control investment in various
types of inventory. 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 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.
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5.3.1 Factor Affecting For Working Capital in Hajoori and Sons Are As Under
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.
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.
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
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
Year
2010
2011
128250
3308214
529800
411901
272250
4006677
29400
476901
637845
38692
5054702
826313
38692
5650233
4831499
1224392
118859
3488248
5672928
1516907
118859
4037162
Particular
Years
2010
2011
Sales (Gross)
6205188
8359098
Less: Returns
45459
99820
6159792
8259278
Materials Consume
4138385
5969105
Personal expenses
209523
279958
Revenue expenses
24407
23928
Total
4372315
6272991
Gross profit
1787414
1986287
418856
564003
Net sales
Less: COGS
Depreciation
218000
296085
1150558
1126199
183886
187944
29126
30191
1035318
1238952
401387
395000
1960759
2570322
5.8 Comparative Balance Sheet of Hajoori and Sons as on 31st December 2010
and 2011
Particular
Sources of fund
Capital
Reserved and surplus
Loan funds
Unsecured Loan
Tax
Deposits:
From customers
From FLV Ltd.
Total
Year
2010
2011
Comparative Statement
Absolute Relative
Change
Change
128250
330821
272250
4006677
144000
698463
112.28
21.11
4
529800
411901
29400
476901
-500400
65000
-94.45
15.78
637845
38692
505470
826313
38692
5650233
188468
0
595531
29.55
0.00
11.78
5672928
841429
17.42
2
Application of fund
Fixed
Gross block
483149
9
Less: Dep.
122439
1516907
292515
23.89
2
118859
118859
0.00
Net block
348824
4037162
548914
15.74
8
349681
122859
9130
150092
6737709
376082
9130
786226
6388028
253223
0
-714701
1826.82
206.11
0.00
-47.62
86275
771123
70262
231395
1159055
29906
369309
-3232
82715
478698
53.05
91.91
-4.40
55.63
70.36
1146138
277621
1423759
-264704
32628
5650233
220028
50675
270703
207995
-23928
595531
23.76
22.33
23.48
-44.00
-42.31
11.78
7
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
505470
2
5.8.1 Comparative Income Expenditure A/C of Hajoori & Sons as on 31st December
2010 and 2011
Particular
Years
2010
Comparative Statement
2011
Absolute
Relative
Change
34.71
Sales (Gross)
6205188
8359098
Change
2153910
Less: Returns
45459
99820
54361
119.58
6159792
8259278
2099549
34.09
4138385
5969105
1830720
44.24
Net sales
Less: COGS
Materials Consume
Personal expenses
209523
279958
70435
33.63
Revenue expenses
24407
23928
-479
-1.96
Total
4372315
6272991
1900676
43.47
Gross profit
1787414
1986287
198873
11.13
expenses
Operating & other
418856
564003
145147
34.65
expenses
Depreciation
218000
296085
78085
35.82
1150558
1126199
-24359
-2.12
183886
187944
4058
2.21
29126
30191
1065
3.66
1035318
1238952
203634
19.87
401387
395000
-6387
-1.59
1960759
2570322
609563
31.09
Less: operative
income
Less: non trading
expenses
Financial charges
Operating Ratio
Net Profit Ratio
Stock Turnover Ratio
Current Ratio
Liquid Ratio
Quick Ratio
Proprietary Ratio
Gearing Ratio
Long Term Debt Ratio
Gross Profit
100
Sales
Particulars
2010
2011
Gross profit
1787414
1986287
Net Sales
6159729
8259278
29.02%
24.05%
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
Operting Ratio=
COGS+Operating Expenses
100
Net Sales
Particular
2010
2011
COGS
6272991
8623708
Operating expenses
564003
794446
Net Sales
8259278
11943547
Operating Ratio
82.78%
78.86%
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.
Net Profit
100
Net Sales
Particular
2010
2011
Net Profit
1035318
1238952
Net Sales
6159729
8259278
16.81%
15.00%
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.
COGS
Average Stock
Particular
2010
2011
COGS
6272991
8623708
Average Stock
462357
617976
13.57
13.95
Interpretation
Stock Turnover Ratio in 2010 was 13.57 times which increases to 13.95 times in 2011.
Current Assets
Current Liabilities
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
2010
2011
Current Assets
680357
1159055
1423759
Current Ratio
0.59 : 1.00
0.81 : 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
Acid Test Ratio=
Quick Assets
Liqud Lilbilities
Particular
2010
2011
Quick assets
301657
361951
1146138
1834222
0.26 : 1.00
0.20 : 1.00
Liqud Lilbilities
Acid-Test Ratio
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
Proprietory Ratio=
Proprietory Fund
100
Total Assets
Particular
2010
2011
Proprietory Fund
4278927
5631466
Total assets
7041364
9493852
Proprietory Ratio
0.61
0.59
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
2010
2011
1371306
1591326
Owners Funds
4278927
5631466
0.32
0.28
Interpretation
Debt Equity Ratio
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
Long term fund
2010
3564463
2011
4459061
assets
4037162
4532298
0.88
0.98
Marketing is a societal process by which individuals and group obtain what they need and
want through creating, communicating, offering and freely exchanging product and services
of value with others. For a managerial definition, marketing is often described as Art of
Selling product. But people are surprised when they hear that the most important part of
marketing is not selling! Selling is not only the tip of the marketing iceberg.
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.
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understand the important of continuously reinvented one of its brands to keep up with the
changing marketing environment is Sosyo.
innovation, varying R&D budgets and increased regulations. Such of the above trends in
technology have been given greater importance Sosyo.
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.
Indias middle class population is as big as entire USs population. The standard of living of
Indians has been steadily increasing. A suitable GDP growth of around 8%-9% is going to
take India into a different league in the coming years. The rise in disposal incomes of Indian
population is expected to spur demand for the most of the consumer goods. To take the
advantage of this consumer boom of the 21st century, Hajoori & Sons is embarking on a new
venture to make a dent in the city of Mumbai and then slowly expanding to the other parts of
the country.
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.
Product
Price
Place
Promotion
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
soft drinks which are
available in Lemee
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.
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.
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.
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
500 ml
22
22
22
12
1.5 ltr
45
45
45
25
1 Crate = 24 Bottles
1 box of 500 ml = 24 pc
1 box of 1.5 ltr = 9 pc
Retail Price
Name\ml
Sosyo
Kashmira
Lemee
Hajoori Soda
200 ml
8
8
8
-
300 ml
10
10
10
5
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
PepsiCo
Coca Cola
Heman
Goldi
Sosyo
Pepsi
Coke
Limey
Goldi
Kashmira
Miranda
Thumps Up
Orange
G3
Lemee
7 Up
Fanta
Misty
Zira-Sip
Hajoori Soda
Mountain Dew
Sprite
Masala
Leeme
Sosyo Soda
Slice
Kinley
Soda
Orange
Maaza
COMPETITORS PRICES
120
120
120
-
300 Ml
(24)
164
164
164
84
72
500 Ml (24)
396
396
396
210
-
315
315
315
180
-
500 ml (24)
451
451
451
451
451
476
482
482
482
482
500 ml (24)
PepsiCo
200 ml (24)
Pepsi
Miranda
7 Up
Mountain Dew
Slice
148
148
148
148
148
300 ml
(24)
216
216
216
216
216
Coca-Cola
200 ml (24)
300 ml
(24)
Coke
Thumps Up
Fanta
Sprite
Kinley
Maaza
125
125
125
125
125
216
216
216
216
126
216
451
451
451
451
261
565
482
482
482
482
482
482
Goldi
200 ml (24)
Goldi
G3
zira-sip
Leeme
Orange
50
96
96
50
50
Heman
Limey
Orange
Misty
Masala soda
200 ml (24)
300 ml (24)
96
96
96
96
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
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.
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Structure of Place
Distribution Channel
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.
0Level
Manufacture
1st Level
2nd Level
Manufacture
Manufacture
Retailer
Consumer
Consumer
Franchisee
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
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.
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.
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
Bibliograph
Reference books:
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
Year
2010
2011
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
272250
4006677
29400
476901
637845
38692
5054702
826313
38692
5650233
4831499
1224392
118859
3488248
349681
122859
9130
1500927
5672928
1516907
118859
4037162
6737709
376082
9130
786226
56369
401814
73494
148680
680357
86275
771123
70262
231395
1159055
926110
226946
1153056
-472699
56556
5054702
1146138
277621
1423759
-264704
32628
5650233
Particular
Sales (gross)
Years
2010
6205188
2011
8359098
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
45459
6159729
99820
8259278
4138385
209523
24407
4372315
1787414
5969105
279958
23928
6272991
1986287
418856
218000
1150558
183886
564003
296085
1126199
187944
29126
1035318
401387
1960759
30191
1238952
395000
2570322