65104618 Havmor Ice Creams Bba Mba Project Report
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MAR'ETIN"RESEARCH
Mar/eting research is the systematic collection, design,analysis and re&orting of data and finding relevant to ascientific mar/eting situation facing the com&etition%rocess and mar/eting research followed in Havmor%
efining the &roblems and research ob3ectives%evelo&ing the research &lan%!ollecting the information%
AnalyJing the information%resenting the findings%
Havmor !om&any does mar/eting research through hissales staff% ometimes Havmor !om&any a&&ointsmar/eting intelligent staff for research in different areas%
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MAR'ETSE"MENTATION
Mar/et egmentation is a full larger grou& havingsimilar wants% egmentation is consumer orientedmar/eting strategy% Mar/et segmentation gives theformal segmentation to the fact that wants and desires ofconsumers diverse and we can orient s&ecific categoryor the segment of the mar/et, so that su&&ly will have thebest correlation with demand% Varied and com&le9 buyer
behavior is the root cause of mar/et segmentation%
Mar/et consists of buyers and buyers differ in one ormore res&ects% (hey may differ in their wants,&urchasing &ower, geogra&hical locations, buying&ractices% Any of these variables can be used to segmenta mar/et%
!he ice cream mar"et is se#mented in follo*in# three*ays(
asis of flavors (
ViJ% Vanilla, trawberry, !hocolate, Mango, 7uttercotch, Besar ista, etc% Vanilla, trawberry and!hocolate together account for about @56 of the mar/etfollowed by 7utter cotch and other fruit flavors%
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On t%e &asis of stoc" "eepin units 'pac"a in (
"% !ones%>% !u&s%% Retail%
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DISTRI+UTIONCHANNEL
'n the field of mar/eting, channels of distributionindicates the routes of &athway through which goods andservices flow or move from &roducers to consumers% (heroute of channels of distribution includes the manufacturerand the consumer as well as all intermediaries% (hesecom&onents are lin/ed in the channel system by one ormore of the mar/eting flows, such as transfer of title ofownershi&, &hysical distribution of merchandise, transfer oftitle of ownershi&, &hysical distribution of merchandise,transmission of mar/eting information and the flow ofmoney in the form of &ayment of &rices and other dues%
!he channel of distri'ution of Havmor is asfollo*s(
-anufacture
C & #ents
Distri'utors
Dealers & etailers
Customers
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(he above channel strategy defines the channelmembers% (he finished goods first go to ! + Agent is notavailable then the finished goods directly go to istributors%
HO Gi%e% Ahmedabad Office constantly watches the
moments the orders given in is&atch e&artment byvarious ! + Agents and istributors%
Havmor has distributors and $555 retail outlets% (henetwor/ is /e&t alive by large flat of refrigerated vehiclesNrefrigerated e2ui&ments and retail freeJers are sourcesfrom world leaders in technology, so as to deliver 2uality&roducts to the consumers, which is a commitment at
Havmor%
Mar/eting e&artment also coordinate with is&atche&artment to get the order from ! + Agents andistributors, and try to see the moments of dis&atch thatorders as early as &ossible by clubbing various distributorsin one route% And at last dealers get the goods from thedistributors%
PHYSICALDISTRI+UTION
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(he mar/eting &rocess is not com&lete sim&ly bycreating su&erb &roduct and by creating the consumerthrough aggressive salesmanshi&% elivering the &roduct tothe consumer at the right time and right &lace is e2uallyim&ortant function in mar/eting% 'n &rocess of mar/eting,
this vital function is called &hysical distribution%
hysical distribution means the &rocess of delivering the&roduct to the user or consumer &rom&tly, safely and intime%
!he ma or components of physical distri'ution ofHavmor(
Darehousing'nventoryOrder &rocessing
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> /H+?)I: (
As ice cream is a &erishable &roduct and it must be /e&t incool &lace to maintain its 2uality for few days, Havmor hascold storages at different ends% (hese ends are factories,! + agents, istributors and ealers% (he tem&erature /e&tin these storage houses is as low as ?>4 !%
I:5/:!+ (
+or the raw material, Havmor /ee&s the inventory% (he
inventory of the &ac/aging material is /e&t as low as&ossible and according to the demand forecasted andgrowth rate of the mar/et% 'ce cream is &roduct of im&ulsecategory that re2uires &ro&er storage, to /ee& it in a &ro&ercondition% (he &roduction and consum&tion system alsosuch that, the &roduction is done through the whole yearand main demand is in summer season% o every com&anyhas to store ice cream &ro&erly% !om&any has enoughstorage facility at their all &lants, and all ! + agents havetheir own cold storage facility, so they /ee& the stoc/ as &ertheir re2uirement i%e% at the time of &romotional scheme&eriod or in summer they maintain high stoc/, the ! +agent carry the stoc/ in bul/ and they su&&ly the ice creamto distributors or dealers, who also have &ro&er freeJingfacilities%
+ D/ . +C/))I: (
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Havmor has defined MOF GMinimum Order Fuantity forthe distributors to ma/e order to the com&any% As far asorder of the dealers are concerned that is the headache ofthe distributors% Here, the 3ob of the Havmor8s sales staff isto assist the distributors is selling the ice cream% Havmor
states their &hysical distributor8s ob3ective, 0getting the rightgoods to the right &lace%1 *o &hysical distribution systemcan simultaneously ma9imiJe customer service andminimiJe distribution cost% Ma9imum customer serviceim&lies large inventories, trans&ortation and fewwarehouses%
(he designing distributors system is to study what the
customer wants and what com&etitors are offeringcustomer, interested in several things such as on timedelivery% Havmor8s willingness is to meet customer needs,careful handling of merchandise to ta/e bac/ defectivegoods and re-su&&ly them 2uic/ly and to carry inventory forcustomer%
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PAC'A"IN" %TRANSPORTATION
.ac"a#in#(
'ce cream consumers in 'ndia are generally children andyoung &eo&le% (o attract these consumers ice creammanufacturers try hard to ma/e their &ac/aging attractive%
ac/aging &lays a large role in mar/eting of ice cream&roducts% Many different &ac/ing, siJes and designs can bechosen along with ty&e of &ac/aging material%
'ce cream is mar/eted in three ty&es of &ac/aging%
(he most &o&ular is a cu& of "55-"45 ml sold Rs% =-"4
&rice range% 'ce creams at this &rice range are generallybrought for immediate consum&tion% (hey are availableeverywhere from big su&er mar/et to local retailers%
7ar, stic/s and !ones re&resent another ready-to-eatmar/et and are &riced Rs% 4 and is very &o&ular with/ids and forms ma3or &ortion of the ice cream sales%
arty &ac/ and +amily &ac/ are in much use now a days%
(hese are used for &arties and in restaurants% (houghoutside attractiveness is not very im&ortant but the siJeof the &ac/ and handling comfort is im&ortant%
!ransportation(
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INDEX
SR .NO
PARTICULAR PA"ENO.
1 Introduction 32 )ales or#ani,ation 43 )ales ud#et4 .ricin# policy 6
Channel of distri'ution6 dvertisin# 8
)ales promotion $
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INTRODUCTION(he sales manager is the head of the sales
de&artment and he is guided in his &olicy by the managingdirector of the com&any% (hus, the sales manager must bea man of initiative and ready to &ro&ose new ideas aso&&ortunity comes% He must be active, energetic and&ersistent in order to co&e u& with the wor/ involved whichis sales &romotion% E9&loring new &ossibilities of obtainingcustomers, mar/et and new goods% He must be energeticand &ut new life and interest in his sales staff% alese9ecutive should be a good 3udge of human nature, a goodmi9er and /now how to handle men not only his customersbut also his com&etitors in the mar/et% He must be a goodorganiJer and /now the &sychology of the grou& to whomhe serves%
't is true that a sale is the last activity of anorganiJation but it is not the less im&ortant function% (hesales e9ecutive in additional to being com&etent the
techni2ues and &rocedure of selling the &roduct, is ane9ecutive directing the activities of others% He has to co-o&erate with the rest of the staff for new &roducts and newuses of the commodity%
SALES OR"ANISATION
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(he sales de&artment should co-o&erate with designde&artment so that the &roduct designed should meet thee9act re2uirements of the customers and the im&ortantfactors li/e efficiency,sturdity,low cost of maintenance,safety for the o&erator ,ease of handling and good luc/ are
to be achieved and the sales de&artment has to co-o&eratewith the &roduction de&artment to see that the 2uality ismaintain and the rate of &roduction is according to theschedule with &lanning de&artment to &re&are the sales&rogrammed on which the entire &lanning will be based,with the accounting de&artment to bring the &rices downand there by to increase the turn over and fi9 selling &rice%Dith the accounts de&t% to give com&lete data and with the
&ersonnel de&t% to &rocedure the efficient salesman%
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SALES +UD"ET
)ales forecastin# & Devisin# )alesud#et(
As 'ce !ream is &erishable good and it re2uires&ro&er freeJing to maintain ro&er 2uality, whichis very costly% o sales forecasting is veryim&ortant to reduce the cost of over &roductionand maintenance%
Ha$mor considers follo)in factors for forecastin t%e Sales(
Observing Mar/et (rends%ast figures related to consum&tion &attern%eciding the future strategy%
)sing the above factors, e9&erts in the sales field usetheir e9&ertise and give their o&inion for the ne9t year8ssales% (hus, Havmor use Pury of E9&ert E9ecutive O&inion%
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PRICIN" POLICY
A &rice &olicy is the standing answer to the firm torecurring &roblem of &ricing% 't &rovides guidelines to themar/eting manager to evolve a&&ro&riate &ricing decisions%(here are many methods of deciding &ricing% 't de&ends onthe organiJation that which method it wants to ado&t%
.olicy on pricin# relative to costs(
Havmor follows +ull !ost ; !ost &lus &ricing% +ull !ost&ricing, no sale is made at a &rice lower than thatcovering total costs, including the variable costs andallocated fi9ed costs%
or / ample;
- !ost of roduction
S - !ost of goods sold S S C6 - !ost of goods sold S distributor8s Margin S S C6 S G">6 to >56 T MR ? ealer margin
added to above G!onsumer rice
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CHANNEL OFDISTRI+UTION
Every &roducer see/s to lin/ together the set ofmar/eting intermediaries that best fulfill the firm8sob3ectives% (his set of mar/eting is called the channel ofdistribution%
A distribution system is /ey of e9ternal resources%*ormally it ta/es years to build and it is not easily arranged%'t ran/s in im&ortance with /ey internal resources such asmanufacturing, research, engineering8s and field sales&ersonnel and facilities%
(he channel of distribution of the com&any has thefollowing way:
-anufacturer
#ents
Dealers
etailers
Customers
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AD&ERTISIN"'t is defined as any &aid form of non-&ersonal
&resentation and &romotion of ideas, goods and servicesby identified s&onsor% 't is im&ersonal salesmanshi& formass selling, a means of mass communication%
Havmor !om&any has used many media ofadvertising such as &ress media, which includesnews&a&ers and magaJinesN outdoors advertising thatincludes &osters, boards and electric dis&lay, multimediaincluding web site, etc%
roduct boreal magaJine (hey have attended an e9hibition in world level and in
'ndia more than 45 times% 'n &roduct today magaJine (ender world 'n industrial e9&ress Machine tools Local channels
(he firm is s&ending more than > la/es amount inadvertising%
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ales &romotion is a vital bridge or a connecting lineremoving the ga& between &ersonnel selling andadvertising the two wings of &romotion% (he sale of a&roduct has to be &romoted or encouraged through a *o%of influences at the &oint of &urchase where retailers and&ros&ective customer meet face to face% ales &romotionmay stimulate boost consumer denying at the &oint ofsale or im&rove dealer effectiveness at the retail outlets%
!here are various sales promotional tools such as(
am&les, cou&ons%
rice &ac/s%
remiums%
!ontest%
+ree trials, rice off%
Allowance of goods%
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Havmor com&any has done all &romotional activities witha view to increase sales of &roducts and to attract a newcustomer to com&any8s &roduct% !om&any has &rovidedmany offers such as 07uy one- .et one free1, 07uy family
&ac/ and get attractive gift free1, etc% !om&any has alsodone dealers &romotional activities include cash discounton &urchase, dis&lay and advertisement allowances, etc%
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INDEX
Srno.
Particular Pageno.
1 Introduction 832 inancial evie* 843 +r#ani,ational )tructure 84 inancial plannin# 86
Capitali,ation 86 Capital )tructure 88
Depreciation policy 8$
8 -ana#ement of *or"in#capital $%
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INTRODUCTION+inancial Management is an integral &art of overall
management% 't is not totally de&endent area% 't drawsheavily on related disci&lines and fields of study such aseconomics, accounting, mar/eting, &roduction and2uantitative methods%
(he term 0nature1 as a&&lied finance refers to itsrelationshi&s with closely related fields of economics andob3ectives% 'n the early years of its evolution it was treatedsynonymously with the raising of funds% *ow in addition to itis &rocurement of funds, efficient use of resources isuniversally recogniJed%
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FINANCIAL RE&IE('n s&ite of staff com&etition, &articularly in 'ce !ream
'ndustry, Havmor !om&any8s (O(AL ALE at the end ofthe financial year >55C->55@ is Rs% C"C@ Lacs earnedduring &revious year is Rs% $#>#%= Lacs%
!om&any has earned the .ross rofit of Rs% $5$%"@Lacs before de&reciation and financial e9&enses during theyear ended on
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OR"ANISATIONALSTRUCTURE
+inance is the foremost re2uirement of any firm,finance decision constitutes one of the critical and /eydecisions of any de&artment% (he duty of .eneral Manageris to handle accounts and overall co-ordination of financede&artment% All ma3or decisions are ta/en by Managingirector% lans are made by .eneral Manager and it is
a&&roved by Managing irector% Managing irector isres&onsible for any /ind of the result to the irectors of the!om&any%
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FINANCIAL PLANNIN"+inance is an im&ortant function of business% (he
a&&lication of &lanning to the function is financial &lanning%'t involves the &olicies, determination of ob3ectives and&rocedure relating to the finance function% +inancial&lanning is an im&ortant function of a financial managerwhether a business is big or small this function has to be&erformed% 't is necessary to do financial &lanning for ane9isting as well as new business%
A financial &lan is a statement estimating the amount
of ca&ital and determining its com&ensation and anotherim&ortant as&ect of financial &lan is to determine the&attern of financing%
7efore raising finance it is essential to ma/e estimatesfor long term as well as short tern financial needs%
Long term financing is generally needed for fi9edca&ital re2uirement i%e% &urchase of fi9ed assets%hort term finance is generally needed for wor/ing
ca&ital re2uirement i%e% mar/etable securities, debtors,etc%
'n Havmor, the financial &lanning is done for long tern orshort term financial re2uirements% +inancial &lanning isnecessary to reduce the cost of finance and all the longterm and short term finances is raised through family fundsand overdrafts% (he re2uirement of all the long term is alsofulfilled through ban/ as and when needed%
CAPITALISATION
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DEPRECIATIONPOLICY
e&reciation is an e9&ense item% 't is charged on fi9edassets% +i9ed assets are those which are of material value,meant for resale and having fairly long life and are used inthe business%
-ethods of depreciation are as follo*s(
traight line method%iminishing balance method%
Annuity method%e&reciation fund method%'nsurance &olicy method%e&letion method%Machine hour rate method%
'n Havmor de&reciation is on +i9ed Assets is &rovided ontraight Line Method%
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MAN"AMENT OF(OR'IN" CAPITAL
!a&ital re2uired for a business can be classified undertwo main categories%
"% +i9ed !a&ital%>% Dor/ing !a&ital%
(he conce&t of wor/ing ca&ital is further divided into
two broad &arts they areQ .ross Dor/ing !a&ital% *et Dor/ing !a&ital%
ross >or"in# Capital E!otal Current ssets
!otal Current ssetsE 2 %2@5>%$ ? "5#@%@ GRs% 'n Lacs T "C5$%@ Lacs
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FUTURE PLANS Havmor is ado&ting a consumer oriented strategy asfar as the &rice factor is concerned, where in the &rioritywas on &assing more and more benefits to ultimateconsumers% All the benefits accruing out of economies ofscale were &assed to consumers in the form of value formoney offers li/e 07uy one get one free1%
(he overall broad strategy of increasing theconsum&tion was su&&orted by a&&ro&riate &romotion and
mar/et su&&ort% (he selection of media and communicationstrategy was done with an ob3ective of achieving the broadob3ective growth by growing the mar/et%
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SU""ESTION After going through &ractical training in Havmor for
ma/ing the analytical re&ort of a com&any, ' would li/e toconclude some suggestions in order to achieve the targetsand to ma/e its consumers brand loyal%
(o decrease the cost of &roduction in order to com&etethe com&etitors%(o im&rove the channels of distribution so thatconsumers gets the best taste%Less sales &romotional tools should be used, as toomuch of sales &romotion adversely affects the re&utationof com&any%More mar/eting research is re2uired in order to /now thetaste of consumers%
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95/99
CONCLUSION After visiting Havmor, it seems that 'ce !ream is the
Bing of .u3arat% ' felt glad of being a &art of it% (he visit tosuch a huge and re&uted industry has im&roved my&ractical /nowledge of wor/ing in industry and its variousde&artments%
Havmor is an industry that is very well e2ui&&ed by thelatest technology and efficient human resource%
' wish them very best luc/ for future%
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95
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8/13/2019 65104618 Havmor Ice Creams Bba Mba Project Report
96/99
- -96
96
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8/13/2019 65104618 Havmor Ice Creams Bba Mba Project Report
97/99
+I+LIO"RAPHY
- -
Sr
No.
Title o$ t)e
0oo2 Aut)or Pu0lication
"%ersonnel
management!%7% Memorial
Himalaya
ublishing
House
>%
Bing8s mar/eting
mgt%
U>nd Edition
M%M%Varma
R%B% A2arwal
Bing boo/
Educational
ublishers8
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8/13/2019 65104618 Havmor Ice Creams Bba Mba Project Report
98/99
- -98
98
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8/13/2019 65104618 Havmor Ice Creams Bba Mba Project Report
99/99