Dhanya Project

1

Maharaja Soaps industries Private Ltd.

CHAPTER-1

INTRODUCTION TO PROJECT REPORT

Marketing is a process or a function originated and developed along with the past several years from the human civilization. But its emergency as a management science is relatively of recent origin. It is a system of integrated business activities designed to developed strategies and plans to the satisfaction of customer wants of selected market segments or targets concentrations, equalization, and dispersion constitute the heart of marketing is a socio economic process social responsibilities include personal obligations of people and economic process social responsibilities include personal obligations of people and economic process includes the exchange goods and services and their values determined in terms of money price.

Hence marketers are called upon to anticipate changes in marketing environment involving risks difficulties and uncertainties. The customers tastes differs hence the forecast of changes marketing plans and programs can be attained only by day reports, which involved present condition and demand in the market only such reports can help the marketers to attempt for the change and obtained the desires goals.

Therefore the marketing should be well planned, organized, directed, co-ordinates and controlled. A project report is a collection of data or information or things going on and around marketing place about the product, they are marketing. Such report may help marketer to modify to change or to adopt a particular marketing strategy.

Industry Profile

Consumer attitude towards shashi products

2


No industry operates in a vacuum and none is self-sufficient. All industries require several inputs to meet their marketing and production processes. However big a company may be, it rely on other industries for some ingredients, product labels, containers, and shipping boxes, and more. Not only the soap and detergent manufacturers must have access to vital inputs, they should also seek low-cost suppliers as market forces direct them to cut costs. The rise of global markets may help, and the purchasing professionals at soap and detergents companies are exploring foreign regions, including those in developing countries, to find new sources of materials. Characteristics of the labor market and physical infrastructure also affect and influence the performance of soap manufacturers. In this section we will discuss some other factors-the structure of markets for non-labor inputs and the availability of a research base-that are important to the industry.

Soap makers, even the largest ones, do not for the most part maintain their in-house chemical production capabilities. They should therefore source and purchase their raw materials from other suppliers. A recent trend among large soap and detergent companies is to reduce the number of suppliers used, as a move that help to reduce costs and improve benefits. Known as "supplier consolidation", this trend puts


3


more business in the control of a group of fewer suppliers, thus providing them greater incentive and benefit to offer superior service to their soap making customers. In addition, it is apparently less costly and easier to deal with a small number of suppliers for a given input. A negative effect of supplier consolidation is that different suppliers have different strengths. While some may be excellent at ensuring timely deliveries of high quality inputs and reacting to direct requests of the buyers, others may be very good at anticipating the buyer's requirements or at offering providing auxiliary services, like inventory tracking. Therefore, to implement a successful supplier consolidation strategy, a buyer must carefully weigh the tradeoffs that may arise.

While soaps and detergents are generally not considered as high-technology products, the companies are always looking for a breakthrough product to increase sales, because to have new and high value products is the principal way to improve profitability. But as most of the biggest soap makers in the world, have divested much of their chemicals strengths and capabilities, they are turning to the suppliers of their raw materials to provide chemical expertise.

Beyond simply searching for efficient suppliers, soap manufacturers and their raw material suppliers are expected


4


to formulate more technology alliances over the next few coming years than they have in the past. This requires the soap manufacturers to devise and formulate a new culture, in which they will share information with their suppliers.

Growth DriversThe chemicals industry manufacture not only basic and specialty chemicals, but also agro chemicals, pharmaceuticals and consumer care products. Starting with raw materials such as oil, fats, alkalis, minerals, gas, air and water, the chemicals industry converts these materials into a wide range of substances for uses and applications by other chemical companies, other industries and consumers. Soaps and Detergents are one of the oldest and major segments of the chemistry business. These products are designed and formulated utilizing simple chemistry but have a high degree of differentiation along the branding lines. Research and development costs are increasing and rising and most of these products are becoming high-tech in nature. As consumer care products we mean products, such as soaps, detergents, laundry aids, bleaches, hair care products, skin care products, fragrances, and more.

Key market drivers of this industry include


5


Product Innovation: Product innovation allow all companies, large or small, to participate in a sector where the needs of consumers are evolving and the opportunities are growing for both mass market as well as niche solutions to satisfy diverse attitudes and lifestyles. It helps to accomplish major developments, innovations and technological breakthroughs, which can be at formulation level, at product form level, or at packaging level.

Sustainable Consumption: Sustainable consumption means changing the habits of people so as to minimize the impact on environment due to domestic use. This principle was put into application with the advent of concentrated products. These products however, did not have the intended economical and environmental effect, as because some people just did not think that a lower dosage of concentrated products was required. Because of this in the recent years, the industry has introduced the concept of unit dosing in capsules to tablets to the dishwashing laundry detergents market. Unit dosage provides convenience as well as simplicity, anticipating the consumers' demand for easy to use and safer products. Unit dosing has had various positive environmental effects, because of less transport among others.

New Product Development: The practice of developing and introducing new products to market spans the complete


6


product lifecycle, which starts from primary identification of market opportunity, conception, design and development and goes through production, product launch, support, enhancement and retirement. The process is basically concerned with the conversion of the product concept into a functional reality. As such, the concept of new product development tends to have more focus on engineering, dealing with the issues of new technology and the development and testing of functional prototypes. As markets are increasingly become mature, manufacturers are under high pressure to have faster new product development cycles. The prime reason for new product development is convenience.

Regulations: The soaps and detergent industry is one of the most regulated of all and in addition to the regulation of its products, it is subject to several requirements that aim at reducing the release of chemical substances into the environment during the process of manufacturing. Such requirements generally include limitations (through regulations) on the quantity of a substance, which can be released to the environment.


7


Chapter-2

Company profile:-

Maharaja Industry’s manufacturing detergent soaps, washing powder, crystal salt, table salt and other products under the brand name of Shashi and Savaal , because of its good quality as products made out of good raw materials to keep up consistent quality.

the qualified team of sales executives work in close co-ordination with the clients, to understand their specific requirements and deliver products in exact accordance, we have a strong foothold in Karnataka as well as south India, due to our commitment to quality and our excellent service.

In detergent market Nirma and Hindustan Lever are close competitors with 38% market share each. Norma leads the popular


8

Maharaja Soaps industries Private Ltd.segments, while HLL leads the premium detergent powder segment. P&G and Henkel Spice are the other key competitors in the detergent market. In toilet soaps, HLL has a dominating 63% market share. Norma has also garnered a significant 22% market share in short time. Other major players in the segment are Godrej soaps and P&G.

The sachet was an innovative stroke of marketing genius that reduced product differentiation and changed the dynamics of the detergents market. Today, sachet sales constitute about 15-20% of the detergents market. But innovation seems to have deserted the soaps and detergents industry ever since.

With penetration at its highest and the market saturated the Rs.4000 core detergents market has been stagnating for almost 5 years. Compounding this problem are the smaller players like Ghazi detergent, who offer products of similar quality, at almost half the price.

Compact detergent from a small penetration of the total Rs.3500 core detergents market. The compact detergents market is thus valued roughly at Rs.100 core today.

In the total detergents market, International Surf Excel has a share of 11.5% with Ariel not very far behind at 8.6%, region wise; International Surf Excel leads in each of the regions.

For instance, in the compact segment (northern region) Surf has a market of 60%. It leads in the other markets in the concentrates as well, with a market share of 55% in the south, 59% in the east, and 56% in the west.

P&G launched an onslaught with Ariel in the early 90’s, which was later upgraded to Ariel with Micro shine which was launched at the end of the 1996 and early 1997. Preceding the move, HLL had launched International Surf Excel in April 1996, which replaced Surf Ultra. While the concentrates detergents market originated in the early 90’s this segment experienced heightened activity during 1996-97.


9


A. Background & Inception of the Company:

Maharaja Industries is one of the famous company producing detergent cakes, powder & scouring powder etc…. in south India. Maharaja Industry is the most respected company in India by producing quality products.

Smt. ShashikalaElangovan Ravi started manufacturing detergent powder at home in 1990 to spend the free time in a useful manner. She has studied up to 10th standard. Since from childhood, she has been dreaming to industrialist. She was encouraged by her husband & friends to start a small scale industry in manufacturing of detergent cakes, powder & scoring powder. Sri Elangovan Ravi, who was working in detergent company, had a good experience in his job.

He resigned his job & joined his wife to support in her work. Initially she has commenced the business with the investment around 1 lakh rupees with the help of 8-10 labors.

Maharaja Industry was register under the partnership Act with 2 parties, being Smt.Elangovan Ravi who is entitled for 60% share in the firm & Sri Elangovan Ravi who has entitled for 40% of share in the firm. However, Sri Elangovan Ravi is the partner of the Maharaja Industry.

B. Nature of the business:

Introduction to soaps and detergents:

Soaps and detergents are used by all of us as cleaning agents in our everyday lives. These products are sodium salts of organic acids. They are special organic acids that have long chain hydrocarbons with hydroxyl groups. These types of acids are also called as fatty acids. Soapiness in soap comes from sodium salts of the fatty acids, oleic acid and plasmatic acid.

The raw materials required for the manufacturing of soaps are:


10

Maharaja Soaps industries Private Ltd. Animal fats or vegetable oils Noah NaCl

Preparation of soap:-

Heating fat along with the NaOH makes soap. Sodium salt of a fatty acid and alcohol is formed. This process is called saponification. One such saponification reaction is shown below:

Fat or oil + sodium hydroxide soap + glycerol

(An ester) (An alkali or base) (Sodium salt)(An alcohol)

Introduction to washing powder:-

Washing powders are a combination of soaps, detergents and other chemicals. Generally Washing powders have about 15-30% of their weight in synthetic detergents.

The chemicals included in washing powders and their functions are as follows.

Sodium sulphate and sodium silicate are added to keep the powder dry.

Sodium triphosphate or sodium carbonate is added to make sodium alkaline.

Carboxyl methyl cellulose is added so that the dirt particles removed are kept suspended in the solution.

For obtaining sparkling white clothes, a bleaching agent is added. The bleaching agent is in the form of sodium perborate.


11


Plant location:-

Maharaja industry is located in Davanagere district, Karnataka state. The plant is located outside the Davanagere city i.e., at the industrial area in lokikere road. The production capacity of the plant is 10000 boxes per day. The address of the firm is,

Maharaja industries

No.2051/A, KAIDB,

Lokikere Road,

Davanagere-5

B. Vision, Mission and Quality Policy:-


12


Company’s vision:-

To establish a strong foothold in detergents products, crystal salt,

Table salt, Agarbathi& Match boxes, being a provider of high quality

products with excellent sales able to satisfy the all the customers.

To be the best detergent manufacturing company in the country.

To continuously upgrade the technology, human resource and

modernize is process.

To meet the surpass customer expectations.

To enable each and every employee to be committed to quality

and customer satisfaction.


13


Company’s mission:-

To be a proffered quality detergent products in South India and in

national market.To provide excellent quality and services.

To develop new products.

To provide quality products to the customers.

To compete with the competitors.

To provide employment.

Quality policy:-

Quality has always been the foremost concern for them. They have

adopted several quality control measures of international standards to

ensure superior quality. Their team of quality control inspectors monitors

each and every stage of the production process, from the procurement of

the raw materials to the dispatch of the finished goods in the market.

Product Profile:-

Introduction of Shashi detergent soaps and

powders:-

The larger quantity of Shashi detergent cakes and powders are

consumed in the household purposes, which contains all the

builders’components. It is interesting that output of both Shashi detergent

cake and powders of Maharaja Industries has been growing steadily year

by year. Though the place of progress of detergent cake has been much


14

Maharaja Soaps industries Private Ltd.faster than that of detergent powder, Maharaja Industries adopted in

planning process for producing bulk quantity of soaps and detergent

products.

Shashi detergent soaps and powders were used both in rural areas

and urban areas. Now a dayShashi detergent soap and powder is having

a high potential market in whole Karnataka and some part of Andhra

Pradesh, Tamil Nadu, Kerala, Maharashtra and Goa. The users of

Shashi detergents soaps and powders are highly by the middle and

lower level income people. Maharaja industries is producing the product

in four forms such as,

Detergent cake.

Detergent powder.

Scouring powder.

Dish wash bar.

The products manufactured by the company are:-

Shashi detergent cake

Savaal detergent cake


15

Maharaja Soaps industries Private Ltd. Shashi detergent powder

Savaal detergent powder.

Shashi crystal salt

Shashi table salt

Shashiagarbathis

Shashi match boxes

Therefore the position of Shashi detergent soap and powder in

Karnataka is almost favorable. It is mainly because of good quality with

lesser amount for products.


16


List of raw materials:-

o Soda ash light.

o Acid slurry.

o Sodium silicate.

o Soap stone powder.

o Dolomite powder.

o Perfume.

o Sodium sulphate.

o Feldspar.

o Liquid detergent.

o Color.

o Salt.

o Lime stone powder.

o China clay powder.

o Organic Surfacout.

o Sulphate of Alum.

o Sodium Phosphate.

Area of operation:-

As it is a small scale industry, it function only in the national

market, sells its products to the local customers within India. If they get

any best offer within their production capacity then they go for export in

the best price.


17

Maharaja Soaps industries Private Ltd.Its finished products are sold throughout the Karnataka, Tamil

Nadu, Maharashtra, Goa, Kerala and Andhra Pradesh.

Ownership Pattern:-

Maharaja Industries is registered under the partnership Act with

two partners, Smt. ShashikalaElangovan Ravi who is entitled for 60%

share in the firm and Sri.Elangovan Ravi who is entitled for 40% of share

in the firm.

Competitors Information:-

a. Wheel

b. Rin

c. Surf

d. Ariel

e. Henko

Infrastructural facilities:-

They have fully developed infrastructure facilities at factory site at

industrial area, Davanagere. Factory is situated on over 5 acre of land


18

Maharaja Soaps industries Private Ltd.with constructed area and has abundant open space for surrounding the

factory.

1. Canteen facility

2. Vehicle facility

3. Medical facility

4. Water supply

5. Computerized statistical unit

6. 5000sq.mtrs of administrative block surrounded by the

greeneries and lawn.

Achievements:-

During the year of 2002, the Davanagere district women

industrialist association has selected Smt.

ShashikalaElangovan Ravi as a “BEST WOMAN

ENTERPRENEUR”.

Best entrepreneur award by chambers of commerce in 2003.

Number 1 detergent award for its best quality in 2007.

Work flow model:-

Maharaja Industries adopts the machineries mentioned below,

generally packing of detergent cakes are done through machine/ hand

packing. That is by the women workers & the male workers in order to

provide work do paste mixing for the unemployed people of the society.


19



DOUBLE ZIGMA MIXTURE

Mixing raw materials

REFINER

Getting bulk lumps of cake

TAPING MACHINE

Taping the boxes of detergent cake

PALLETS

Wooden pallets used for the purpose of stacking of

finished goods

HYDRAULIC TRALLY

Movement of the stock of the finished goods

PACKING MACHINE

Packing the detergent cake

TROLLEY

Stacking the cutter detergent cake

VACCUM CRACKER

Avoid the crack in design of cake

DRIER

Drying the detergent cake

VACCUM PUMP

Removing the water molecules from the

mass

SECONDARY CUTTING MACHINE

Cutting the pieces of cake in to equal size

PRIMARY CUTTING MACHINE

Cutting the long bars into small bar detergent cake

20


Future growth and prospectus:-

The company is planning to:

Enter into the products like edible oil, shampoo, toilet soaps Introduce new trade schemes to increase sales. Aggressive advertisement and publicity as a part of sales

promotion

MC KINSEY’S 7_S FRAMEWORK:-

1). structure:-


Shared values

Strategy

Structure

Strategy

Staff

Skills

Systems

Style

21

Maharaja Soaps industries Private Ltd. It is the basis of specialization and coordination influenced primarily by strategy.

Organizational structure refers to the basic hierarchical procedure in which the organization carries out their business and accompanying baggage that shows whose tasks are divided and integrated. Structure is the basic organization of the company, its department, reporting lines, areas of expertise and responsibilities.

Overall organizational structure:-

The organization objectives strategies have direct bearing on the organization structure. It is the visualized that Maharaja Industry have the following strategic goals;

To provide high quality products. It satisfycustomer needs. To develop policy governing organization design, compensation,

human resource development, human relations and human resource retention.

To make functions easy, the company is also having various departments and sub divisions.

Organizational hierarchy/ structure is a basic frame work within which the manager’s decision making behavior takes place. It is a pattern of relationship among various components of the organization. This also prescribes the relationship among various activities and positions.

Role of organization structure:-

It is capable serving many functions but at the same time cannot serve all them equally well over ultimate time. In general, role of organizational structure is;

Facilitating management actionEncouraging efficiencyCommunicationOptimum use of organization resources


22

Maharaja Soaps industries Private Ltd.Stimulating creativityJob satisfaction

Organization structure of Maharaja Industry:-


Production manager AccountantAssistant

Marketing departmentProduction & DepartmentFinance & accountsPurchase&inventory

General Manager

Executive director

Sales managerAssistantClerk Workers

Marketing manager

Area sales manager

Marketing executivesSubordinates

Supervisor

23


Functional departments:-

1. Purchase and inventory2. Finance and accounting3. Production department4. Marketing department

Executive Director:-

Executive director is a one of who determines objectives, plans and policies of an organization. He has to manage all the departments such as production department, maintenance department and accounts department and marketing department etc,.Of the organization. He has to look after the functions of all the departments he issues instructions to various departments and brings coordination between them he also keeps relations with outside world including customers, suppliers, departments etc,.

General Manager:-

The GM have the control over mainly the needs and requirements of all other departments such as production department, maintenance department and accounts department and marketing department etc,.

1. Production department:-


Production departments

Production manager

Shift In charge

24

Maharaja Soaps industries Private Ltd. Production is the process of converting raw materials into finished goods. Manufacturing is the process of producing only tangible goods whereas production includes creating both tangible and intangible goods.

The production department consists of production manager, shift supervisor, plant operators, dispatch coordinator, route supervisor and helpers. Production manager is the head of this department. Every day he has to collect details of every process through supervisor, plant operators, packing operators and other helpers.

Function of Production Department:-

Production according to target. Machine health. Low rejections and shortages. Follow system. Increase productivity and efficiency.

2. Human Resource Department:-

Structure of HR Department:

The management of HR is a system in which participate seek to attain both individual and group goals.


HR DEPARTMENT

HR MANAGER

WORKERS

25

Maharaja Soaps industries Private Ltd. The HR Department perform the function of recruiting employees or workers selection, providing them training and development, placement, giving job description, job evaluation,, merit rating, etc.

It facilitates the method of payment of wages, promotion, transfer, welfare measures, entering in to contract with employees, handle labor problems trade dispute, keep employment record and so on.

OBJECTIVES:-

To maximize commitment of people by organizing work and creating attitudes and behaviorwhich generates best outcomes.

To create and utilize an able and motivated workforce, to accomplish the basic organizational goals.

To establish and maintain sound organizational structure and desirable working relationships among organizational members.

To create facilities and opportunities for individuals or group development to match with the growth of the organization.

Designing high performance organization. Learning organization and knowledge management. Management of organizational growth and renewal. Management of labor. To develop human and social capital. Development of leadership. Creativity and innovation.

Functions of HR department:-

Recruitment. Selection. Wages and salaries. Incentives and benefits. Performance management.


26

Maharaja Soaps industries Private Ltd. Communication.

3. Financial Department:-

Structure of Financial Department:

Financial department is also one of the important departments in the firm. Financial management is concerned with the managerial decisions that result in the acquisition and financing of short term finance and long termcredits of the firm. It deals with the situations that require selection of specific problem considering the size and growth of an enterprise. Here the analysis deals with the expected inflows and outflows of funds and their effect on managerial objectives.


FINANCIAL DEPARTMENT

FINANCIAL MANAGER

ASSISTANT MANAGER

27

Maharaja Soaps industries Private Ltd.The analysis states two main aspects of financial management like

procurement like of funds and an effective of use of funds to achieve business objectives.

Procurement of funds:-

As funds can be obtained from different sources, procurement of fund is considered as an important problem of business concern. Funds procured from different sources have different characteristics in terms of risk.

Funds procured by the issue of equity shares are the best from risk point of view for the company as there is no question of repayment of equity capital expect when the company is under liquidation.

From the cost point of view, equity capital is most expensive source of fund as dividend expectation of shareholders are normally higher than prevalent interest rates.

Utilization of Funds:-

Effective utilization of fund is an important aspect of financial management which avoids the situations where funds are either kept idle or proper uses are not being made. Funds procured involved certain cost and risk, so it should be used properly and profitably.

Objectives:-

Profit Maximization:-

In the simple sentence,it means, maximizing the rupee income of the firm. This objective is justified by the following points:

Business is an economic activity carried on for making profits. It also maximizes social economic welfare. Only profit maximize will survive in the long run. Profit is the proof of success.


28

Maharaja Soaps industries Private Ltd. Profit is the best source of funds for expansion, growth and

innovation. Profit is essentially for earning goodwill, recognition and

prestige in the market.

Wealth Maximization:-

It means maximizing the net present value of a course of action. The NPV of a course of actionis the different between the gross present value of the benefits of that action and the amount of investment required to achieve those benefits.

The gross PV of a course of action is found out by discounting its benefit at a rate which reflects their timing and uncertainty.

4. Accounts Department:-

Structure of Accounts department:-

To run the organization, successfully, there should be a proper Accounts Department. It is the department where the company’s all accounting work is done. This department includes Account Manager, Cashier, Computer operators etc,.

Objectives:-

Proper utilization of funds.


Accounts Department

Account Manager

Transportation Account

Sales Account Assistant

29

Maharaja Soaps industries Private Ltd.Collection of funds.Maintenance of accounts of different parties.Making proper payment to the parties from whom raw materials are purchased.Evaluation of financial performance.Financial and investment decision making.Looking after the overall financial requirement of the company.Recording the inflow and outflow of the cash.

Functions:-

Receive the purchase bills from purchase department.Entries for purchase/sub-contractors bills.Purchase payments.

The accounts maintained are:

Stores and purchase accounts.Cash or bank accounts.Sales accounts.

Bankers:

Union Bank of India.State bank of India.Urban Co-operative Bank Ltd.Lakshmi Vilas Bank Ltd.

5. Marketing Department:-Structure of Marketing Department:-


MARKETING DEPARTMENT

MARKETING MANAGER

SALES OFFICE

30


Marketing department consists of marketing manager, assistant manager, sales officers, sales representatives, etc. marketing is a consumer oriented activity and also it is a social process by which individuals and groups obtain what they need and want through creating, offering, and freely exchanging products and services of value with others.

Marketing activities are divided into four basic elements which are together referred as marketing mix.

The basic elements are:

1. Product2. Price3. Promotion4. Place

Objective:-

Improvements in the customer service. Capture large market share. To create and meet new customers and their requirements. To create a bridge between customer’s needs and company’s

business. Expanding profit margin. Price stabilization.

Functions:-

Continuous improvement of quality. Time management. To organize visits discussions in order to educate the customer

about their requirements and get a proper and clean feedback.


31

Maharaja Soaps industries Private Ltd. Exploring new ideas and techniques to provide best quality

materials. Maintaining good relation with customers. To co-ordinate with inter-departments like production, purchase,

planning, etc. To meet customer requirements.

2). Skills:-

The capabilities and competencies that exist within the company, what it does best are called the skills.

Basically they are dividing the skill into two categories viz,

1. Skilled.2. Unskilled.

Skilled laborers are put for production process and unskilled in packing and lifting the goods. Merit rating is given according to performance in their work.

There are different techniques of training which are used to develop the skills of the employees, like on the job, off the job training, etc. in case the candidate recruited is unskilled, he is put under a probationary period for the first few months under senior skilled employee where he is trained on the job. For this Maharaja industry has no specific training department. Once the training period is over, the candidate’s performance is evaluated and the candidate is taken as permanent employee.

The company is providing on the job training of 15 days for both new and existing employees.

3). Style:-

Style in an organization means the leadership approach of top management and company’s overall operating approach.


32

Maharaja Soaps industries Private Ltd.Participative Leadership:-

The organization follows the participative style of leadership. This means, each and every employee of the organization are allowed to give their point of view which are concerned to production, marketing and other areas.

The employee who will have good views, which prove to be profitable to the company, will be aware. This makes employees feel good working environment in the organization. So the participative leadership style makes the employee to feel like working in his own organization and his morale will be boosted and it also enhance his loyalty towards the company and this will result in the job satisfaction.

Top-Down Leadership:-

The top down approach is the style where in the final decision happens at the top level of hierarchy and is communicated to the respective departments. The top management will formulate the rules and regulations, work procedures, etc. which are supported to be followed by other departments.

4.) Strategies:-

Every organization is structured around its products, services, technologies or a combination of them. As such, the organization may have different work culture and organization structure defines roles and responsibilities and expects good behavior from the work men.

The strategy of the company is satisfying its customers by providing better quality products to its customers. To impart and develop its employee’s skills and knowledge to the changing technologies to improve its productivity, quality, efficiency and also to increase the morale of its employees, the company has undertaken the work of giving training to each and every employee so as to contribute to the organizational goals and objectives.


33


Price Strategies:-

The pricing strategies of Maharaja Industry are quite good. They fix the price at comparative level. They follow low pricing strategy. This helps them to reach common people and rural areas.

The price policy helps the firm in rising maximum profit. The price policy helps the firm in meeting market competition

successfully. The price policy of Maharaja Industry assures reasonable

margin to them and also intermediaries, i.e., wholesalers and retailers, who can be induced to take more interest in promoting the sales of the firm only through margin of commission.

The price policy of Maharaja Industry is flexible. It permits them in changing price depending upon the market forces of demand and supply and economic conditions of boom and depression.

The Maharaja Industry also flows Cost plus Price Method. This method is also called as Mark-up pricing; margin pricing or full Cost Method. The sales price per unit of a product comprises.

a. The cost of the product per unit covering the cost of producing the product, the administrative and selling costs and depreciation, interest, etc.

b. The desired mark-up profit margin.

The mark-up may be at a certain percentage based on cost or the sale price. The mark-up percentage of profit differs from one product to another product.

Launching of Sales:-

Launching of sales like promotion schemes by way of:

Discount coupons to dealers. Discount coupons to retailers.


34

Maharaja Soaps industries Private Ltd. Gold/silver coin scheme.

5). Staff:-

Staff means the company’s human resources in the organization. The company will always appreciate the well performing employees and motivates them for achieving higher jobs. It also follows a procedure of giving monetary incentives, gifts, rewards and recognition for well performing employees.

Technical Manager:-

They have to look after production and quality control, raw material inflow and outflow, and maintaining of machineries.

General Manager:-

They have to look after labor problems and appointing new labors.

Supervisors:-

They have to look after quality control and attendance.

Clerk:-

They have to look after maintaining files, mailing.

6). System:-

System refers to the rules, regulation procedures, both formal and informal that complement the organizational structure. This includes the way the functions of different departments are carried out.

Accounting System: Financial statements are prepared under the historical cost conversation on an accrual basis and comply with the accounting standards.

Costing system: - process costing. Inventory Control System: - FIFO method for issuing materials. Remuneration System: - Time rate system is following to employees.


35


7). Shared Values:-

These are the values and beliefs of the company. Maharaja Industry is one among the private sector unit which has high values towards customers and employees. The one more important thing which the Maharaja Industry values towards is giving quality products to the customers, innovation and respect for people.

SWOT Analysis:-

Strength and weaknesses are essentially internal to the organization and relate to the matter concerning resources, programmers and organization in key areas such as

Sales. Marketing. Capacity. Manufacturing Cost.

Opportunities and Threats are external to the organization and can exist or develop in the following areas.

Size and Segmentation. Growth Pattern and maturity. International Dimensions. Relative attractive of segments. New technologies etc.

Strength:-

Maharaja Industry has good reputation in local market. Competent man power. Good dealer, distributor network and market base. Strong advertisement and promotional tools. Brand name. Appropriate infrastructure for conducting of training. Hard work and committed employees.


36

Maharaja Soaps industries Private Ltd. Partnership with various technical and management institutions

for providing a continuous supply of fresh graduates. Streamlined system of recruitment. IR/LR relations very conductive for the smooth functioning of

the unit.

Weakness:-

Distribution only for the particular areas not for other areas. Cut throat competition between the local competitors may

hamper the company. Difficult change to an alternative line of production with the

existing machinery. Lack of clarity and transparency in upward / downward

communication. No clear job description for various levels of resulting in dual

reporting relationships. Investment. Low awareness of the company in rural sectors. Increase in cost due to increase in manpower cost. Decline economy of manufacturing sectors in general.

Opportunities:-

Upgrading the products. Introduce new products, and technology to the new

generations. Servicing the below poverty or low income people with new

schemes. Favorable government policy like incentives and grants and

infrastructure facilities. Improvement in quality production / operations / services

through system approach. Groundwork for implementation of WCM concepts, an ISO 9001: 2001 standards is already been made to put the above theory into practice.

Easy availability of manpower for vacant positions.


37


Threats:-

Innumerous competition in the existing market. Rapid growth in technology. Research and development facilities. Threat from agents and dealers to increase commission. Government policies towards manufacturing industries,

imposing environment pollution restriction. Tough competitors such as detergents playing predominant

role.


38


Chapter-8

Questionnaire and bibliography

Questionnaire

Dear respondents,

I am student of 2nd year MBA in HMSIT college at Tumkur. As a part my curriculum, I have undertaken the project work titled as “consumer attitude towards the Shashi soaps and detergents” with special reference to Maharaja Industry, Davanagere.

I hereby request you to kindly spare of your few movements for me toknow your opinion about Shashi detergents, the information relived by you will be purity for academic purpose kept confidential.

Thanking you,

Yours faithfully

(Dhanya Kumar G M)

1. Name: 2. Address:


39


3. Age:4. Qualification:

a. Up to SSLC { } c. PUC { }b. Graduation { } d. Other { }

5. Occupationa. Former { } c. Business{ }b. Profession { } d. Employee { }

6. Income level.a. Below 10000{ } c. 15000-20000{ }b. 10000-15000{ } d. 20000&above{}

About the product:

7. For washing purpose which one you are using?a. Detergent soaps { } b. Washing machine { }

8. If you are using detergent soaps, which soap you are using?a. Tide { } b. Rin { }b. Shashi { } d. Surf excel { }

9. If Shashi which one you will prefer?a. Pink { } c. White { }b. Blue { } d. Green{ }

10. What factor you will consider while buying detergent soap?a. Prize { } c. Quantity { } b. Quality { } d. Brand { }

11. How you come to know about the Shashi?a. TV advertisement{ } c. Window display { }b. Magazines { } d. News paper { }

12. How you feel about the Shashi advertisement?a. Very good { } c. Average { }b. Good { } d. Poor { }

13. From how many years you are using Shashi detergents?


40

Maharaja Soaps industries Private Ltd.a. Less than 1 year { } c. 3-5 year { }b. 1-3 years { } d. More than 5 years { }

14. How frequent do you purchase Shashi detergent?a. Once in a weak { } c. 3 times in a month { }b. Twice in a month { } d. More than 3 times { }

15. What do you think about price?a. Low { } c. High { }b. Medium { } d. Very high { }

16. How do you feel about availability of the product?a. Excellent { } c. Poor { }b. Good { } d. Very poor { }

17. Have you come across any complaints regarding the product?a. Yes { } b. No { }

18. If yes how often?a. Frequently { } b. rarely { }

19. Your suggestions about the product towards the company:

Thanking you,

Date:Place: Signature.


Dhanya Project

Documents

Transcript of Dhanya Project