A PROJECT REPORT

ON

INDUSTRY VISITS

BY

ABDUL SAMAD

BBA (2009 – 2010)

IN PARTIAL FULFILLMENT OF

Bachelor of Business Administration

UNIVERSITY OF PUNE

MITSOM College

PUNE: 41103

CERTIFICATE

This is to certify that Mr. ABDUL SAMAD of MAEER’s MITSOM College has successfully

completed the project work in partial fulfillment of requirement for the award of Bachelor of

Business Administration prescribed by the University of Pune

This project is the record of authentic work carried out during the academic year

2009-2010.

Mrs. Anjali Sane Brig. (Dr.) R.K.Bhatia

Course-in-charge Principal

DECLARATION

I, Mr. ABDUL SAMAD hereby declare that this project is the record of authentic work carried

out by me during the academic year 2009-2010 and has not been submitted to any other

University or Institute towards the award of any degree

Abdul Samad

Sr. No. Name of the Company/Organization Date of the visit

1- Mcon Conveyors Private Limited, Pune 30th Jan 2010

2- Pravin Masalewale, Pune 9th Feb 2010

3- Universal Construction Machinery and

Equipment Ltd, Pune24th Feb 2010

4- Seminar on Axis Bank 6th Feb 2010

MCON CONVEYORS Pvt Ltd

MCON CONVEYORS Pvt Ltd

Introduction:

The MCON Conveyors Private Limited, are a legally registered private firm engaged in

manufacturing and supplying a wide range of material handling equipment and conveying

systems. These include Belt Conveyors, Link Belt / Chain Conveyors, Roller Conveyors,

Gravity Roller Conveyors, Assembly Line Conveyors, Portable Belt Conveyors, Link Belt

Roller Chain, Conventional Bucket Elevators and many more. Their foundation was laid in

the year 1988 and since then they are working towards achieving the numero-uno position under

the guidance of their mentor Mr. Vishvas Mangalvedhekar.

Over the years, they have diversified their range of premium quality equipment by effectively

utilizing modern production techniques. Further, they have also established business tie-ups

with Meyer Machine Company (U.S.A., Texas) for manufacturing Overlapping bucket

elevators. Meyer Machine Company is a 50 year old organization and is one of the leading

manufacturers of material handling equipment. 

Further, the strategically located manufacturing unit at MIDC, Pirangut-Pune, is equipped with

latest tools and equipment so as to manufacture our range in bulk round the clock. They have

also been paying high attention towards the quality of their range and this is the reason that they

have adopted latest process technology at their in-house quality assurance lab. This helps them in

assuring that the range that they supply to their clients is high in terms of functionality,

construction and other features.

Operation:

Mcon conveyors Ltd operate their factory in Pirangut Pune. They buy raw materials which are

locally available and, the standard motors to operate the conveyors are imported from Italy. The

production is carried out as per job orders, which mainly come from industrial companies.

Product Range of Mcon Conveyors Pvt Ltd:

o Belt Conveyors:

Slider Bed Belt Conveyors

Roller bed Belt Conveyors

Inclined Belt Conveyors

o Link Belt / Chain Conveyors:

Link Chain Conveyors

Link Belt Conveyors

Modular Link Belt Conveyors

Y- Link Conveyors

Chain Conveyors

Slat Chain Conveyors

o Roller Conveyors:

Powered Roller Conveyors

Unpowered Roller Conveyors

Power and Free Roller Conveyors

o Conventional Bucket Elevators

o Overlapping Bucket Elevators

o Custom Built:

Metal Detector Conveyors

Drum Motor Conveyors

Double Decker Conveyors

Ball Tables

Gravity Roller Conveyors

Assembly Line Conveyors

Pre-form Feeders

Chain Lifters

PRODUCTION MANAGEMENT

The production (or manufacturing) management since long has been associated with a factory

situation where goods are produced in physical sense. The factory has been defined –

“as any premise in which persons are employed for the purpose of making, altering, repairing,

ornamenting, finishing, cleaning, washing, breaking, demolishing, or adopting for sale, any

article.”

“Production is the process by which goods and services are produced.”

The essential feature of a production function is to bring together people, machines, and

materials to provide goods and services thereby satisfying the wants of people. Since both

manufacturing and service organizations involve above mentioned features, the term

manufacturing is gradually being replaced by Operations management.

Objectives of production management

Right quality, right quantity, right time and right price are the four basic requirements of the

customers and in such they determine the extent of customer satisfaction. And if these can be

provided at a minimum cost, then the value of goods produced or services rendered increases.

Thus, the objectives of production management are “to produce goods and services of the right

quality, in the right quantities, according to the time schedule and at a minimum cost.”

Objectives:

1. Producing the right kind of goods and services that satisfy customers’ needs (effectiveness

objective)

2. Maximizing output of goods and services with minimum resource inputs (efficiency

objective).

3. Ensuring that goods and services produced conform to pre-set quality specifications (quality

objective)

4. Minimizing through put time- the time that elapses in the conversion process- by reducing

delays, waiting time and idle time (lead time objective)

5. Maximizing utilization of manpower, machines, etc. (capacity utilization objective).

6. Minimizing cost of producing goods or rendering services (cost objective)

METHODS OF PRODUCTION

The various methods of production are not associated with a particular volume of production.

Similarly, several methods may be used at different stages of the overall production process.

Job Method:

With Job production, the complete task is handled by a single worker or group of workers. Jobs

can be small-scale/low technology as well as complex/high technology.

Low technology jobs: here the organization of production is extremely simply, with the required

skills and equipment easily obtainable. This method enables customer's specific requirements to

be included, often as the job progresses. Examples include: hairdressers; tailoring

High technology jobs: high technology jobs involve much greater complexity - and therefore

present greater management challenge. The important ingredient in high-technology job

production is project management, or project control. The essential features of good project

control for a job are:

- Clear definitions of objectives - how should the job progress (milestones, dates, stages)

- Decision-making process - how are decisions taking about the needs of each process in the job,

labour and other resources

Examples of high technology / complex jobs: film production; large construction projects (e.g.

the Millennium Dom

Batch Method:

As businesses grow and production volumes increase, it is not unusual to see the production

process organized so that "Batch methods" can be used.

Batch methods require that the work for any task is divided into parts or operations. Each

operation is completed through the whole batch before the next operation is performed. By using

the batch method, it is possible to achieve specialization of labour. Capital expenditure can also

be kept lower although careful planning is required to ensure that production equipment is not

idle. The main aims of the batch method are, therefore, to:

- Concentrate skills (specialization)

- Achieve high equipment utilization

This technique is probably the most commonly used method for organizing manufacture. A good

example is the production of electronic instruments.

Batch methods are not without their problems. There is a high probability of poor work flow,

particularly if the batches are not of the optimal size or if there is a significant difference in

productivity by each operation in the process. Batch methods often result in the buildup of

significant "work in progress" or stocks (i.e. completed batches waiting for their turn to be

worked on in the next operation).

Flow Methods:

Flow methods are similar to batch methods - except that the problem of rest/idle

production/batch queuing is eliminated.

Flow has been defined as a "method of production organisation where the task is worked on

continuously or where the processing of material is continuous and progressive,"

The aims of flow methods are:

- Improved work & material flow

- Reduced need for labour skills

- Added value / completed work faster

Flow methods mean that as work on a task at a particular stage is complete, it must be passed

directly to the next stage for processing without waiting for the remaining tasks in the "batch".

When it arrives at the next stage, work must start immediately on the next process. In order for

the flow to be smooth, the times that each task requires on each stage must be of equal length and

there should be no movement off the flow production line. In theory, therefore, any fault or error

at a particular stage

In order that flow methods can work well, several requirements must be met:

(1) There must be substantially constant demand

If demand is unpredictable or irregular, then the flow production line can lead to a substantial

build up of stocks and possibility storage difficulties. Many businesses using flow methods get

round this problem by "building for stock" - i.e. keeping the flow line working during quiet

periods of demand so that output can be produced efficiently.

(2) The product and/or production tasks must be standardized

Flow methods are inflexible - they cannot deal effectively with variations in the product

(although some "variety" can be accomplished through applying different finishes, decorations

etc at the end of the production line).

(3) Materials used in production must be to specification and delivered on time

Since the flow production line is working continuously, it is not a good idea to use materials that

vary in style, form or quality. Similarly, if the required materials are not available, then the

whole production line will come to a close - with potentially serious cost consequences.

(4) Each operation in the production flow must be carefully defined - and recorded in detail

(5) The output from each stage of the flow must conform to quality standards

Since the output from each stage moves forward continuously, there is no room for sub-standard

output to be "re-worked" (compare this with job or batch production where it is possible to

compensate for a lack of quality by doing some extra work on the job or the batch before it is

completed).

The achievement of a successful production flow line requires considerable planning,

particularly in ensuring that the correct production materials are delivered on time and that

operations in the flow are of equal duration.

Common examples where flow methods are used are the manufacture of motor cars, chocolates

and televisions.

OBSERVATION

Mcon Conveyors limited is specialized in production of Conveyor equipments for various

industries like, sugar industry, automobile industry, cotton industry, grapes industry etc. Among

these industries cotton industry has the highest demand for conveyors, covering 60% of the

production for conveyors used to separate seeds from cotton. The approximate cost of one

conveyor machine is around 6-7 lahk.

The raw materials used for the machine are bought locally and some parts are imported from

Italy. Conveyor belts used for grape production are made from special PVC sheets that are pre-

ordered and specially designed for Mcon. The Conveyor equipments have sensors that’ll stop its

operation whenever there is a fault. It is designed in such a way that it can detect weights and

thus is used in packaging as well.

The work station of Mcon is small compare to other sites we visited, as they don’t need a bigger

workstation. The equipments are manufactured upon order and designed to meet customers’

needs. The equipments are manufactured to a pre-order and is inspected by the customer before

delivery. If the project requires the engineers to work on site, then Mcon send their engineers to

the work site.

Those equipments which are already delivered are inspected by Mcon engineers every six

months. Apart from these periodical inspections they provide training to the employees who

handle these equipments.

Maintaining the standards of the equipments is the given a special care in Mcon. Especially in

the case of Over-lapping Bucket Elevators, a high standard is maintained from the material used

to finishing of the equipment. For the Over-lapping bucket elevator, maintaining such a standard

is necessary as there is an agreement between Mcon and Meyer Machine Company (U.S.A.,

Texas). Meyer Machine Company also shares its technology for manufacturing Bucket

Elevators. Standard is maintained in other conveyor systems as well.

Tata Motors is one of the high valued customers of Mcon. Especially designed Y link conveyors

are produced for Tata Motors to transport spares.

Pravin Masalewale

PRAVIN MASALEWALE

Introduction

Pravin Masalewale founded in 1962is the largest producer, processor and marketer of spices in

Maharashtra. It was pioneered by entrepreneurial couple - Shri. Hukmichand Chordia and Sou.

Kamalbai Chordia.

 

A home based business ran by the couple then; Pravin has grown today to include three state of

the art manufacturing facilities, offering over 50 ground spices and spice blends. There

production only in Shirwal plant is approximately 1500 tons/month with an earning of Rs.200

crore p.a. This range of products caters to the varied tastes and requirements of their eighty

million plus customers across the world.

 

Raw spices are procured after a stringent selection process of reputed suppliers from all over

India and abroad. The spices are processed in unique customized plants designed specifically for

the company. The research and development lab works closely with the procurement, production

and marketing teams to assure the flow of quality products.

 

Once a 2 person home enterprise, Pravin now employs more than 1000 people, and reaches its

consumers through a network of 463 distributors and 1 lakh retailers.

 

Pravin Masalewale is run by 3 generations of the Chordia family. The founders provide the

wisdom and guiding philosophy for an enterprise whose products are consumed everyday in over

millions of homes across the planet.

Operations:

Pravin Maslaewale has three factories based in Maharastra. Their main Plant situated in

Hadapsar Plant has their Head Office and they have plants in Yavat plant in Pune-Solapur

Nationa highway and Shirwal Plant in the District of Satara. They have distributors all over

India, and exports to EU, USA, Canada. Special Blended Spices of Suhana is to be launched in

Middle East countries during the course of this year.

Branding

Pravin Masalewale has 4 different brands of products. They are Suhana, Sarvam, Seva and

Ambari. They produce about 93 different products. Tag line is used is “Global Tastemakers.”

The branding is done based on quality of the products they offer and usage. Suhana is the

premium quality product and are mainly targeted for special occasions. While Ambari is targeted

for daily consumption, sarvam and Seva is target for commercial purposes.

Product Quality:

Pravin Masalewale is the first company to get AGMARK certificate in 1976 for standards in

marketing of agricultural products and they adhere to ISO 9001:2008 standards.

Product Range:

Various products under these brand names are:-

Blended Spices

Ambari Kanda Lasun Masala Ambari Bhajaka Masala

Ambari Chatpat Masala Ambari Lasun Masala

Ambari Special Kanda Lasun Masala Sarvam Garam Masala

Ambari Goda Masala Sarvam Kala Masala

Ambari Garam masala

Ambari A-1 Garam Masala

Ambari Sunday Special Masala

Ambari Suhana A-1 Kanda Lasun Masala

Special Blended Spices

Ambari Suhana Garam Masala Suhana Tea Masala

Ambari Suhana Malvani Masala Suhana Super Masala

Suhana Super Garam Masala Suhana Mix Garam Masala

Ambari Suhana Rajma Masala Suhana Biryani Masala

Seasonal

Ambari Suhana Pickle Masala

Ambari Suhana Lime Pickle Masala Ambari Suhana Chiwda Masala

Ambari Suhana Chilli Pickle Masala Ambari Suhana Chakli bhajani

Suhana Papad Masala

Ambari Suhana Kesari Milk Masala

Spices Powder

Ambari Chilli Powder Ambari Turmeric Powder

Ambari Dhane Powder Sarvam Dhane Powder

Sarvam Chilli Powder Seva Chilli Powder

Ambari Suhana Byadgi Chilli Powder Sarvam Turmeric Powder

Ambari Suhana Dandi Rahit Chilli Powder

Ready to cook

Suhana Butter Chicken Mix Suhana Chicken Gravy Mix

Suhana Chicken Methi Malai Mix Suhana Kashmiri Dum Aloo Mix

Suhana Mutter Methi Malai Mix Suhana Mutton Gravy Mix

Suhana Paneer Makhanwala Mix Suhana Paneer Tikka Masala Mix

Suhana Rajma Masala Mix Suhana Shahi Biryani Mix

Suhana shahi Malai Kofta Mix Suhana Shahi Paneer Mix

Suhana Tawa Fry Mix

Papad

Seva Udid Papad Suhana Special Udid Papad

Suhana Special Udid Tikli Papad  Suhana Special Udid Papad No.7 

Suhana Special Punjabi Papad  Suhana Special Punjabi Papad 

Suhana Red Chilli Papad Suhana Red Chilli Tikli Papad

Suhana Special Jeera Sindhi Papad  Suhana Special Jeera Sindhi Papad 

Suhana Special Rajasthani Papad  Suhana Mung Papad 

Suhana Mung Papad Suhana Special Udid Papad

Suhana Special Udid Tikli Papad  Suhana Special Udid Papad

Suhana Special Punjabi papad  Suhana Red Chilli Tikli Papad

Suhana Garlic Green Chilli Papad  Suhana Potato Red Chilli Papad 

Suhana Potato Green Chilli Papad  Suhana Special Palak Papad

Suhana Mung Papad Suhana Mung Papad

Suhana Disco Papad

Others

Suhana Hand Pounded Rice

MARKETING

Marketing practices are continually being refined and reformed in virtually all industries to

increase the chances of success. But marketing excellence is rare and difficult to achieve.

Marketing is both an "art" and a "science" but there is constant tension between the formulated

side of marketing and the creative side.

Marketing deals with identifying and meeting human and social needs. According to Philip

Kotler, “Marketing is human activity directed at satisfying need and wants through exchange

process.”

There definition forwarded by American Marketing Association (AMA) in December 2007:

Marketing is the activity, set of institutions, and processes for creating, communicating,

delivering, and exchanging offerings that have value for customers, clients, partners, and society

at large.

The definition put forward by the Institution Marketing (UK) emphasis on the essentially

managerial nature of marketing. “Marketing is the management process which identifies,

anticipates, and supplies customer requirements efficiently and profitably.”

The insights of these definitions are:

Marketing is:

Social and managerial process that an individual or group get their desires through

creating, offering, and changing a something which valuable one another.

The goal of marketing is about knowing customer in such aspect so that product is

suitable and can be sold to him.

Ideally, marketing causes customer ready to buy.

Marketing process contains opportunity market analysis, research and chooses

compartment market, design marketing strategy, design marketing plan, organize,

perform and watch marketing effort.

Brand

Brand derives from the Old Norse word brandr meaning literally “to burn”, a method of

identifying livestock. Brand today, as it was then, is still the means by which a business

differentiates its goods and services from those of its competitors.

Definition:

Brand is identifying symbol, words, or mark that distinguishes a product or company from

its competitors. Usually brands are registered (trademarked) with a regulatory authority and so

cannot be used freely by other parties. For many products and companies, branding is an

essential part of marketing.

Role of a Brand:

Brand is much more than a physical product

A brand is the essence of emotional relation with the customer

A brand has a clear defining characteristics that the consume/customer readily identifies

Branding Approaches:

Company Name

Individual Branding

Attitude Branding and Iconic Branding

“Non Brand” Branding

Derived Brands

Brand Extensions

Multi Brands

Private Labels

Individual and Organizational Brands

OBSERVATION

Pravin Masalewale, the Indian tastemaker since 1962, has a good reputation in local markets in

Maharastra and across India. Their premium brand Suhana is gaining popularity in international

markets. They have 3 plants in pune, we visited their Shirwal plant on 6th February, and it is a big

plant which has very spacious lush green gardens, with huts for visitors to stay. There is a

administrative block and it has 5 different work stations. Under one hut we have observed that

some women who were enjoying tasting different masalas prepared by a chef.

After a brief introduction about the plant we were taken to show workstations. The first station

receives turmeric from suppliers and separated different qualities of turmeric and takes away

stones. The process goes through various Bucket elevators in a very systematic manner, and then

with other spices the cleaned turmeric goes to packaging. The packaging is done with help of

machines specially designed for packaging at pre set weights. These packed are then manually

bundled.

The second work station was the coriander separation, cleaning and blending station. Here first

the coriander is separated according to quality and then stones are removed, with the help of

machinery. The cleaned coriander is then blended in hot running oil for until it gets brown, after

which it is kept to get dry, then later grinded into various sizes for different spice mixes.

The production process is very carefully handled and a very special attention is given for quality

and hygiene. Research and Development is another focus area Pravin Masalewale has invested

on. To meet the daily needs of masala for Indian homes, to make their food taste better best

possible blend has to be provided.

A great commitment is shown towards providing the best possible blend. Pravin Masalewale

makes sure the spices they bought are the best quality spices, and experts are hired to check the

quality of the spices bought. Raw materials, for this reason have to be brought from various parts

of the country as quality of spice depends on factors like climate.

Marketing in Pravin Masalewale is a centralized strategic function. Individual branding is done,

for the products. Suhana the premium brand of Masala has different blends as well ready to curry

mixes. These are mostly prepared for usage on special occasions. Suhana is the brand which

Pravin Masalewale exports. Ambari and Seva are targeted to local market and they are for daily

uses. Door-to-Door selling, news paper advertising, TV and Radio advertisements are used for

all the brands of Pravin Masalewale.

Gaining access to new markets and expanding sales has been the target for Pravin Masalewale

now.

UNIVERSAL CONSTRUCTION

MACHINERY & EQUIPMENT LTD

UNIVERSAL CONSTRUCTION MACHINERY & EQUIPMENT LTD

Universal Construction Machinery & Equipment Lts (UCME) is pioneered by Mr.

Rohidas Moray in 1974, in his passion to transform his dream to a reality. UCME started with a

humble beginning by providing its own produce like oil lubrication pumps and gear boxes to

major industrial giants. Today it has 4 strategically formed business units in Warje, Shivare,

Shiware and Shindewadi. Then a small work shop in Warje with just 30 to 40 workers has today

reached all over the country and the UCME products have global reach too. UMCE exports its

construction machinery and equipments to 32 different countries.

Vision

To be the largest construction equipment manufacturing company beyond boundaries by meeting

world class standards through strong research and development efforts, sophisticated

manufacturing equipment, strong after sales service.

Mission

Universal’s quest to reach the pinnacle in technology based construction solution is powered by

an even greater desire to be socially responsible, to conduct business in superior service values

and to provide consistent innovation for a better life.

UMCE has achieved various milestones during these 3 decades

In 1982, for a friends request Mr. Rohidas developed a concrete block-machine. The

manufacturing success of this machine catapulted him into construction equipment

manufacturing frame.

In mid-80’s UCME was given a chance to display its expertise by working on a project

for Defense Research & Development Organization. UCME came up the nitric acid

pump that is used in Prithvi Missile. Dr. APJ Abdul Kalam personally tested the pump in

Hydrabad and approved of its use in missiles.

In 1991 the manufacturing of small concrete mixers was started in a small workshop in

Warje. In the same year they participated in an exhibition Constro ’91, which resulted in

great success.

In 1994 elder son of Mr.Rohidas, Mr. Ranjeet Moray joined UMCE with ambitious goals

to benefit company upraise. His first five year plan was:

1. Expansion of sales and service network

2. Broadening of base of construction equipments

3. Standard of construction equipments

In 1996 Warje workshop was shifted to a big facility in Shirval, and opened upto 15

branch offices.

Mr. Abhijeet Moray took charge of Labour and Logistics after his professional training in

Management & Cost Accounting in 1997. In the same year company turned into an ISO

certified company.

2001-2005 considered as Golden Era in the History of UCME. With its second five year

plan new products like Batching plants, Reversible Drum Mixers, Passenger-cum-

Material Lifts and Works Platforms were introduced.

In 2004, UNIVERSAL participated in Bauma - the largest and prestigious exhibition in

the world for Construction Equipment in Munich, Germany. This gave chance for UMCE

to reach market across the border.

In 2005 laid foundation of the plant in Shiware.

The third five year plan began in 2006

o Set Global Service Network in Middle East and Africa

o Expansion of manufacturing base for more Production

o Introduction of heavy range of Construction Equipment

o To set assembly units in North, East, South and Central India

In the same year Shivare Factory was opened, and Shindewadi as acquired and

commence production. Assembly units were set up in Jaipur, Kolkatta, Banglore,

Ahmedabad and Naisk.

13 Distribution offices are setup in Qatar, Oman, Africa and Dubai.

UNIVERSAL has started a unique training facility "UNIVERSAL Construction

Machinery Training Centre (UCMTC)" for construction equipment operators at its

Shiware plant.

Product Range:

Concrete Mixers

Block Machines

Tower Hoist

Earth Compactor

Sand Screening Machine

Bar Bending Cutting Machines

Concrete Batching Plant

Transit Mixer

Passenger/ Material Lift

Works Platform

Hanging Platform

Concrete Batching Plant

Reversible Drum Mixers

Mini Dumper

Tough Rider

SUPPLY CHAIN MANAGEMENT

Definition:

Supply chain management (SCM) is the combination of art and science that goes into improving

the way your company finds the raw components it needs to make a product or service and

deliver it to customers.

Christopher (2005) defines SCM as:

“The management of upstream and downstream relationships with suppliers and customers to

deliver superior customer value at less cost to supply chain as a whole.”

Handfield & Nichols (2002) define SCM as:

“The supply chain encompasses all organizations and activities associated with the flow and

transformation of goods from the raw materials stage, through to end user, as well as the

associated information flows. Material and information flows both up and down the supply

chain. Supply Chain Management is the integration of management of supply chain

organizations and activities through cooperative organizational relationships, effective business

process, and high levels of information sharing to create high-performing value systems that

provide member organizations a sustainable competitive advantage.”

Activities/Functions

SCM is cross function approach including managing the movement of raw materials into an

organization, certain aspects of the internal processing of materials into finished goods, and the

movement of finished goods out of the organization towards the end-consumer. As organizations

strive to focus on the core competencies and becoming more flexible, they reduce their

ownership of raw material sources and distribution channels. These function are increasingly

being outsourced to other entities that can perform the activities better or more cost effectively.

The following are five basic components of Supply Chain Management:-

1. Plan - This is the strategic portion of SCM. Companies need a strategy for managing all

the resources that go toward meeting customer demand for their product or service. A

big piece of SCM planning is developing a set of metrics to monitor the supply chain so

that it is efficient, costs less and delivers high quality and value to customers.

2. Source - next, companies must choose suppliers to deliver the goods and services they

need to create their product. Therefore, supply chain managers must develop a set of

pricing, delivery and payment processes with suppliers and create metrics for monitoring

and improving the relationships. And then, SCM managers can put together processes

for managing their goods and services inventory, including receiving and verifying

shipments, transferring them to the manufacturing facilities and authorizing supplier

payments.

3. Make - this is the manufacturing step. Supply chain managers schedule the activities

necessary for production, testing, packaging and preparation for delivery. This is the

most metric-intensive portion of the supply chain—one where companies are able to

measure quality levels, production output and worker productivity.

4. Deliver - this is the part that many SCM insiders refer to as logistics, where companies

coordinate the receipt of orders from customers, develop a network of warehouses, pick

carriers to get products to customers and set up an invoicing system to receive payments.

5.  Return - this can be a problematic part of the supply chain for many companies. Supply

chain planners have to create a responsive and flexible network for receiving defective

and excess products back from their customers and supporting customers who have

problems with delivered products

OBSERVATION

AXIS BANK

AXIS BANK

Introduction

Axis Bank formerly known as UTI Bank, before rebranding in 2007, is among the first

private banks of India which was established in 1994. As of April 2009 Axis Bank has a network

of 835 branched and extension counters, and 3595 ATMs. In 2008-09, the Bank acquired

23,16,887 new accounts, an increase of 20% over the previous year.

The registered office of the bank is in Ahmedabah, and the main headoffice is in Mubmai. The

Bank has strengths in both retail and corporate banking and is committed to adopting the best

industry practices internationally in order to achieve excellence.

Promoters

Axis Bank has been promoted by the largest and the best financial institute of the

country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs.

100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.

Vision 2015

To be the preferred financial solution provider excelling in customer delivery through insight,

empowered employees and smart use of technology.

Core Values:

Customer Centricity- refers to the orientation of a company to the needs and behaviors of

its customers, rather than internal drivers (such as the quest for short term profit)

Ethics- Moral Philosophy

Transparency- Keeping the customer informed

Teamwork- capability to comprehend and recognize the diverse strengths and abilities in

a group

Ownership- exclusive rights and control over property

Services Provided (Product):

Personal: Accounts, Deposits, Loans, Cards, Investments, Insurance, Payments and

Other services.

Corporate: Accounts, Credit, Capital Market, Treasury, Cash Management services and

Government Business

NRI: Accounts, Deposits, Remittance, Services- PAN assistance and Locker services

Priority Banking: Accounts, Deposits, Loans, Cards, Investments, Payments,

Remittance and Other services- Mobile Refill, Online Shopping, Lockers

Retail Banking: Retail Liabilities-Saving a/c, Current a/c, Fixed deposit a/c

Retail Assets- Personal Loans, Car loan, Home loan, and Educational loan

Wealth Management: Mutual funds, Life Insurance, General Insurance, Gold Coins and

Portfolio Management.

MARKETING MIX

“A marketing mix is the set of controllable variables that the firm can use to influence the buyers

response”.

Once a marketing strategy is developed, there is a "Seven P Formula" that should be use to

continually evaluate and reevaluate your business activities. These seven are product, price,

promotion, place, physical, process and people. As products, markets, customers and needs

change rapidly, these seven Ps must continually be revisited to make sure firm is on track and

achieving the maximum results possible for it in today's marketplace.

The term marketing mix is first used in 1953 by Neil Borden in his American Marketing

Association presidential address. A prominent marketer, E. Jerome McCarthy, proposed a 4 P

classification in 1960, which has seen wide use.

Modern day marketing requires additional three P's because they are important in the total mix.

They are necessary to complete the strategy of products and services.

Product mix

This is the most important thing in the mix, the physical product or the service that the entity is

offering for sale to the public. There are three levels of product they are

Core product - is not the tangible, physical product. You can't touch it. That's because the

core product is the benefit of the product that makes it valuable to the customer.

Actual product- is the tangible, physical product. Consumer can get some use out of it. 

Augmented product- product is the non-physical part of the product. It usually consists of

lots of added value, for which customer may or may not pay a premium.

Another element in product mix is the Product Life Cycle. A new product progresses through a

sequence of stages from introduction to growth, maturity and decline. This sequence is known as

Product Life Cycle. Below diagram shows the PLC curve.

Product Life Cycle

Introduction Stage: In the introduction stage, the firm seeks to build product awareness and

develop a market for the product.

Growth Stage: In the growth stage, the firm seeks to build brand preferences and increased

market share.

Maturity Stage: At Maturity stage the strong growth in sales diminishes. Competition may

appear with similar products. The primary objective of this point is to defend market share and

maximizing profit.

Decline Stage: In this stage sales starts to fall. Firm has 3 options, either to maintain the

product, Harvest the product or discontinue the product.

Price mix

Pricing is one of the most important elements of the marketing mix, as it is the only mix,

which generates a turnover for the organization. The remaining 3p’s are the variable cost for the

organization. It costs to produce and design a product; it costs to distribute a product and costs

to promote it. Price must support these elements of the mix. Pricing is difficult and must

reflect supply and demand relationship. Pricing a product too high or too low could mean a loss

of sales for the organization. Pricing should take into account the following factors:

Fixed and Variable cost

Competition

Company Objectives

Proposed Positioning and strategy

Target groups and willingness to pay

Types of Pricing Strategies:

Penetration pricing: Where the organization sets a low price to increase sales and

market share.

Skimming pricing: The organization sets an initial high price and then slowly lowers the

price to make the product available to a wider market. The objective is to skim profits of

the market layer by layer.

Competition pricing: Setting a price in comparison with competitors

Product Line Pricing: Pricing different products within the same product range at

different price points. An example would be a video manufacturer offering different

video recorders with different features at different prices. The greater the features and the

benefit obtained the greater the consumer will pay. This form of price discrimination

assists the company in maximizing turnover and profits.

Product Line Pricing: Pricing different products within the same product range at

different price points. An example would be a video manufacturer offering different

video recorders with different features at different prices. The greater the features and the

benefit obtained the greater the consumer will pay. This form of price discrimination

assists the company in maximizing turnover and profits.

Bundle Pricing: The organization bundles a group of products at a reduced price.

Psychological pricing: The seller here will consider the psychology of price and the

positioning of price within the market place. The seller will therefore charge 99p instead

£1 or $199 instead of $200

Premium pricing: The price set is high to reflect the exclusiveness of the product. An

example of products using this strategy would be Harrods, first class airline services,

Porsche etc.

Optional pricing: The organization sells optional extras along with the product to

maximize its turnover. This strategy is used commonly within the car industry.

Promotion Mix

A successful product or service means nothing unless the benefit of such a service can be

communicated clearly to the target market. An organizations promotional strategy can consist of:

Advertising:  any non personal paid form of communication using any form of mass

media

Public relations: Involves developing positive relationships with the organization media

public. The art of good public relations is not only to obtain favorable publicity within the

media, but it is also involves being able to handle successfully negative attention.

Sales promotion: Commonly used to obtain an increase in sales short term, could

involve using money off coupons or special offers.

Personal selling: Selling a product service one to one.

Direct Mail: Is the sending of publicity material to a named person within an

organization. There has been a massive growth in direct mail campaigns over the last 5

years. Spending on direct mail now amounts to £18 bn a year representing 11.8% of

advertising expenditure (Source: Royal Mail 2000).  Organizations can pay thousands of

pounds for databases, which contain names and addresses of potential customers. 

Direct mail allows an organization to use their resources more effectively by allowing

them to send publicity material to a named person within their target segment. By

personalizing advertising, response rates increase thus increasing the chance of

improving sales.  Listed below are links to organization whose business involves direct

mail.

Place Mix

This refers to how an organization will distribute the product or service they are offering to the

end user. The organization must distribute the product to the user at the right place at the right

time. Efficient and effective distribution is important if the organization is to meet its overall

marketing objectives. If an organization underestimate demand and customers cannot purchase

products because of it, profitability will be affected.

Indirect Distribution Direct Distribution

Manufacturer Manufacturer

Wholesaler

Retailer

Consumer Consumer

Distribution Strategies:

Intensive distribution: Used commonly to distribute low priced or impulse purchase

products eg. Chocolates, soft drinks. 

Exclusive distribution: Involves limiting distribution to a single outlet. The product is

usually highly priced, and requires the intermediary to place much detail in its sell. An

example of would be the sale of vehicles through exclusive dealers.

Selective Distribution: A small number of retail outlets are chosen to distribute the

product. Selective distribution is common with products such as computers, televisions

household appliances, where consumers are willing to shop around and where

manufacturers want a large geographical spread.

If a manufacturer decides to adopt an exclusive or selective strategy they should select a

intermediary which has experience of handling similar products, credible and is known by the

target audience.

Physical Evidence

Physical evidence is the material part of a service. Strictly speaking there are no physical

attributes to a service, so a consumer tends to rely on material cues. There are many examples of

physical evidence, including some of the following:

Packaging

Internet/ Web pages

Paper works (such as invoices tickets and dispatch notes)

Brochures

Furnishings

Signage

Uniforms

Business cards

The building itself

Mail box and many others

Process

Process is another element of the extended marketing mix, or 7P's.There are a number of

perceptions of the concept of process within the business and marketing literature. Some see

processes as a means to achieve an outcome, for example - to achieve a 30% market share a

company implements a marketing planning process.

Another view is that marketing has a number of processes that integrate together to create an

overall marketing process, for example - telemarketing and Internet marketing can be integrated.

A further view is that marketing processes are used to control the marketing mix, i.e. processes

that measure the achievement marketing objectives. All views are understandable, but not

particularly customer focused.

For the purposes of the marketing mix, process is an element of service that sees the customer

experiencing an organization’s offering. It's best viewed as something that your customer

participates in at different points in time.

People

People are the most important element of any service or experience. Services tend to be produced

and consumed at the same moment, and aspects of the customer experience are altered to meet

the 'individual needs' of the person consuming it. We have to Remember, people buy from

people that they like, so the attitude, skills and appearance of all staff need to be first class. Here

are some ways in which people add value to an experience, as part of the marketing mix -

training, personal selling and customer service.

Training - personnel need to be trained and developed to maintain a high quality of

personal service. 

Personal Selling- the salesperson builds goodwill with customers with the longer-term

aim of generating orders.

Customer Service- services and experiences are supported by customer services teams.

Customer services provided expertise, technical support and coordinate the customer

interface. The way in which a complaint is handled can mean the difference between

retaining or losing a customer, or improving or ruining a company's reputation.

SEMINAR ON SERVICE MARKETING IN AXIS BANK

Marketing approach in banking sector had taken significance after 1950 in western countries and

then after 1980 in Turkey. New banking perceptiveness oriented toward market had influenced

banks to create new market. Banks had started to perform marketing and planning techniques in

banking in order to be able to offer their new services efficiently. Marketing scope in

banking sector should be considered under the service marketing

framework.

Like any other bank service marketing is done by Axis Bank to stay ahead of

the competition being among the largest banks in the country. Axis Bank is

providing high valued service with a quality for the kind of customers who

are willing to pay for an experience that is more personal.

For banking sector the product is the service they provide. The three main

services provided by the Axis Bank is

Corporate Banking

Retail Banking

Wealth Management

The pricing in banking sector is a top management strategic decision. Pricing

has influence directly from Reserve Bank of India. Forex Commission, fixed

deposits, mutual fund, professional fees, locker rates, demand drafts

commission etc are the various prices Axis Bank charges like any other bank.

Promotion in Axis bank is done by word of mouth advertising from existing

customers, outdoor tent campaigns, approaching high network societies,

internal database and news paper advertising as well as other means of

advertising.

Place in the service marketing of Axis Bank would be the place where a

transaction takes place. The branch or extension counter or ATM or any

other place a sales person makes a transaction.

People involve anyone who interacts with the customer from the moment

he/she approaches the bank. From the Security guard at the door, to the

personnel who guide and serve the customer comes under this. Providing an

efficient and timely service with the required knowledge and training has to

be given to the people who interact with the customer.

Process involves going the extra mile, like sending customer their renewed

credit card when it expires, wishing them on special occasions, sending bank

statements etc. Axis Bank has separate Relationship manager to look after

this. Also there should be a good marketing information system to manage

the customers growing needs and to meet them.

Physical evidence in the Banking industry is the experience the customer

gets and the benefits he receives from the dealings with the bank. This is

very important to create a good relationship with the customer. The last

impression they get about the bank is the Physical evidence.

The new trend is building a good customer relation in the Axis Bank is their

new service, Priority Banking. This service is targeted to high values

customers, to ensure their satisfaction in financial as well as their investment

needs. The personnel should have complete knowledge of the customer base

in terms of the profile, demographics & psychographics and assets in the

Bank and in other places. Priority customers gets an priority in service as

well as their banking experience is made a comfortable one.