This document provides an overview of the global soft drink industry and its history. It discusses how soft drinks were first developed in the 1830s and evolved from experimental beginnings. By the late 19th century, many popular soft drinks had been invented like Coca-Cola in 1886. The development of new packaging and distribution methods in the early 20th century helped the industry grow substantially. The document then shifts to discussing the fast moving consumer goods (FMCG) industry in India, how it grew in the late 20th century, and its key product categories like personal care, household care, and branded foods and beverages. Finally, it analyzes the structure of the beverage industry in India and strategies to increase consumption.
A detailed analysis and interpretation on Coca-Cola and Pepsi, conducted with the help of responses of questionnaires, collected from 100 consumers. Contents: 1. Introduction 2. Literature Review 3. Research Methodology 4. Analysis & Interpretation with graphs & pie-charts 5. Conclusion
Academic Project Summarized Below:
• Concept of Energy Drinks
• Profile of Red Bull as a pioneer in energy drinks
• Energy Drink market in India
• Created and conducted an online survey and captured responses of 100 respondents and conducted Secondary research to determine the following objectives:
- To understand and identify the energy drink market in India
- To understand consumer preference and their consuming habits
- To analyze the market opportunities and drawbacks
• Analysis & Recommendations
A detailed analysis and interpretation on Coca-Cola and Pepsi, conducted with the help of responses of questionnaires, collected from 100 consumers. Contents: 1. Introduction 2. Literature Review 3. Research Methodology 4. Analysis & Interpretation with graphs & pie-charts 5. Conclusion
Academic Project Summarized Below:
• Concept of Energy Drinks
• Profile of Red Bull as a pioneer in energy drinks
• Energy Drink market in India
• Created and conducted an online survey and captured responses of 100 respondents and conducted Secondary research to determine the following objectives:
- To understand and identify the energy drink market in India
- To understand consumer preference and their consuming habits
- To analyze the market opportunities and drawbacks
• Analysis & Recommendations
Brand Maggi :Nestle's powerful Arm
The report entitled A Study of “Brand Maggi” deals with the study of Maggi brand that was launched in India in the year 1983, by Nestle India Limited, which became synonymous with noodles. This research tries to find awareness of Maggi& its product line with that of its competitors. The introduction provides the company background, operational & other important information provided by the company, which would assist in taking the decision for the right brand extension strategy for Maggi.
Business plan - Entrepreneurship Project - Shivam JaiswalShivam Jaiswal
Entrepreneurship Project - Business Plan Sample - Beverage Shop (Name - Day's Beverages)
Include:
Executive Summary
Competitors
Our Unique Selling Proposition (USP)
Functional Structure
Our Physical Resources
Our Production Process
Our Human Resource
Marketing Strategies
Packaging
Distribution Process
Our Financial Projections and Budget
Start-up Cost
Selling Price of Products
Guys Its for you !! Download !!
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Research Paper on PepsiCo's Future ChallengesBharat Bhushan
Research Paper on PepsiCo's Future Challenges, including SWOT Analysis.
This paper has identified possible future challenges which companies like PepsiCo can face.
Brand Maggi :Nestle's powerful Arm
The report entitled A Study of “Brand Maggi” deals with the study of Maggi brand that was launched in India in the year 1983, by Nestle India Limited, which became synonymous with noodles. This research tries to find awareness of Maggi& its product line with that of its competitors. The introduction provides the company background, operational & other important information provided by the company, which would assist in taking the decision for the right brand extension strategy for Maggi.
Business plan - Entrepreneurship Project - Shivam JaiswalShivam Jaiswal
Entrepreneurship Project - Business Plan Sample - Beverage Shop (Name - Day's Beverages)
Include:
Executive Summary
Competitors
Our Unique Selling Proposition (USP)
Functional Structure
Our Physical Resources
Our Production Process
Our Human Resource
Marketing Strategies
Packaging
Distribution Process
Our Financial Projections and Budget
Start-up Cost
Selling Price of Products
Guys Its for you !! Download !!
For more information Contact -
facebook.com/imShivax
instagram.com/imshivax
linkedin.com/in/imshivax
Research Paper on PepsiCo's Future ChallengesBharat Bhushan
Research Paper on PepsiCo's Future Challenges, including SWOT Analysis.
This paper has identified possible future challenges which companies like PepsiCo can face.
JSW COLOUR COATED PROFILE SHEET MANUFACTURER IN CHHATTISGARH. AUTHORISED JSW COLOUR COATED STEEL DISTRIBUTOR FOR ENTIRE CHHATTISGARH. USES ONLY PRIME GRADE STEEL OF JSW. WE MANUFACTURE BEST QUALITY COLOUR COATED PROFILE SHEETS WHICH ARE WIDELY USED FOR ROOFING AND CLADDING PURPOSE IN ALMOST EVERY FIELD. THE STEEL USED FOR MANUFACTURING IS OF 550MPA STRENGTH. OUR PRODUCT COMES UNDER THE BRAND NAME BM1020. BM 1020 CAN WITHSTAND ANY WIND LOAD.BM 1020 IS AVAILABLE IN PPGI PROFILE SHEET FORM, PPGL PROFILE SHEET FORM AND BARE GALVALUME PROFILE SHEET FORM. PPGI IS PRE PAINTED GALVANIZED STEEL AND PPGL IS PRE PAINTED GALVALUME STEEL.THE PAINT SYSTEM ENSURES HIGH DURABILITY AND LONGEVITY OF SHEETS. STANDARD PAINT SYSTEM USED IS RMP(REGULAR MODIFIED POLYSTER). OTHER PAINTS LIKE SMP,PVDF ETC. ARE ALSO AVAILABLE. BM 1020 PROFILE SHEET COMES WITH A PITCH 0F 254MM AND COVERED WIDTH OF 1020MM. WE ALSO EXPORT PROFILE SHEETS.
INDUSTRY SIZE / CONTRIBUTION TO GDP,
MARKET OVERVIEW,
PORTERS FIVE FORCE MODEL,
COMPANY INFORMATION,
SWOT ANALYSIS OF ITC LTD.
PRODUCT PORTFOLI OF ITC LTD.
COMPETITOR ANALYSIS,
MARKETING MIX,
STP OF ITC SAVLON
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This IS AN EXAMPLE OF SOMEONE ELSE IN THE CLASS. BELOW IS HOW THE GrazynaBroyles24
This IS AN EXAMPLE OF SOMEONE ELSE IN THE CLASS. BELOW IS HOW THE DISCUSSION SHOULD BE DONE.
Discussion Part 1:
I have selected to be the VP of Marketing for Coke and explore some of the strategies that would need to be taken in gaining more share in the India market.
In India there is a very low market share for what is considered packaged drinks. Currently there is between a 4-5 percent of all beverages consumed in India are packaged, more people are choosing to drink tap water, tea, juices, and dairy products. In order to be successful Coca Cola would need to ensure that “company researchers broaden their definition of competitors in international markets to include competitive pressures that would not be present in the domestic market.” (Keegan & Green, 2020). This is a cultural and economic characteristic that impacts buying patterns in the India market.
There is market potential for success based off increasing consumer spending habits, and a rise in lower to middle class. When the India consumers have had more disposable income, they have shown to spend more on what is considered packaged drinks. Coke does have a current competitive advantage in that is portfolio mix does currently consist of drinks that offer a variety of fruit flavors and tastes to accommodate the local appetite. Sprite, Fanta, and possibly partnering with local vendors for other India only flavors, which is a similar approach in other countries, could prove very beneficial. Coke has shown that it can partner with local vendors for bottling of its products to reduce costs, but also give back to its local communities. This is another part of their strategy to ensure that they are being responsible to support their local communities.
Strengths
-Broad existing portfolio of products
-Brand Recognition
-Partnership with local vendors
Weaknesses
-Emerging market may take time to build
-Cultural tastes may not gravitate to traditional coke
Opportunities
-Reduce cost using local vendors for glass and packaging
-increasing market growth could allow to bring more portfolio items over
Threats
-Potential for other vendors to move into market
-Economic downturn could decrease sales/ potential future sales
Discussion Part 2:
I chose LUVS diapers as my focus from Proctor and Gamble and potential emergence into India as well. Its a latent market in that they uses other methods aside from diapers for natural infant hygiene (clothe diapers, etc). This means that there could be a need if the major environmental concerns could be met as well as done so in an economical way. A latent market means that there is not currently large market share or not market share of. This is critical information needed to decide if a company should enter or not.
In order to identify if there is a need, the following analytical techniques should be applied.
1: Use multiple measures to predict future sales opportunity. Rather than rely solely on one piece of data, utilize several resources and data t ...
Food Research Lab is here to change the narrative. We have successfully formulated, developed, tested and launched healthy beverage products for food businesses worldwide. Our beverage product consultants are food technologists who have years of expertise in beverage product development. Our energy drink formulation range includes Kombucha, Nootropics, Green Tea, Energy Drinks, etc
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ASSIGNMENT
Company descriptions
The Crazy soda Co. Organization is an American multinational nutrition organization and maker, retailer, and sponsor of nonalcoholic beverage syrups, headquartered in Atlanta. The organization's Crazy soda brand constitutes its fundamental product offering, made out of its determination of 15 Crazy soda flavors and a few item augmentations of its Crazy soda line, including without sugar variants of its Crazy soda line which will be contending in the option refreshment market. Crazy soda Co.’s items are sold in 39 states in the United States and in seven territories in Canada. As individuals are turning out to be more cognizant about the need of crisp & clean items, additionally the drink business is developing moving from items with distinctive additives toward more normal and sound items. Crazy soda is a divine, common and reviving utilitarian drink that is enhanced with the appropriate measure of vitamins and other useful fixings to permit the buyer to beat the step by step difficulties of an occupied work, both from physical & psychological point of view. Our point is to help our shoppers grasping existence with execution and joy: improve consistently, less changing so as to demand and all the more performing the way people groups are drinking. We convey refreshment and amiability to a great many individuals everywhere throughout the world who make the most of our beverages. We work together in a manner that enhances jobs and constructs groups. The drinks will be sold basically through free wholesalers to accommodation stores, shops, and grocery stores, however the organization likewise utilizes a "direct to retail" business technique, offering its refreshments specifically to retailers. Toward this end, Crazy soda Co. have come to understandings to offer its refreshments in stores worked by Barnes & Noble, Panera Bread Company, Cost-plus World Markets, and Starbucks Coffee Company.
Industry Analysis and Trends
The non-alcoholic beverage industry extensively incorporates soda pops and hot beverages. The soda class rules the business and incorporates carbonates, juice, filtered water, prepared to-drink tea and espresso, and games and caffeinated beverages. Soda pops are now and again alluded to as liquid nourishment beverages.
The worldwide soda pop market is driven via carbonated sodas, which had a business sector size of $337.8 billion in 2013. Around the same time, CSDs were trailed by filtered water, with a business size of $189.1 billion, and juice, with a business sector size of $146.2 billion (Bailey, 2014). In a later piece of this arrangement, we'll talk about why CSDs have been losing prominence, and why offers of different refreshments, including squeezes and prepared to-drink tea, are expanding.
Changing client needs and presentation of new flavors and item variations are the central point driving interest for non-alcoholic beverages. With vast number of up and coming busines ...
Undertook a Business Research project in the second year of my undergraduate degree on the topic- Comparative Analysis between Pepsi and Coca Cola on the basis of various physical and chemical aspects.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
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This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
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This is a presentation by Dada Robert in a Your Skill Boost masterclass organised by the Excellence Foundation for South Sudan (EFSS) on Saturday, the 25th and Sunday, the 26th of May 2024.
He discussed the concept of quality improvement, emphasizing its applicability to various aspects of life, including personal, project, and program improvements. He defined quality as doing the right thing at the right time in the right way to achieve the best possible results and discussed the concept of the "gap" between what we know and what we do, and how this gap represents the areas we need to improve. He explained the scientific approach to quality improvement, which involves systematic performance analysis, testing and learning, and implementing change ideas. He also highlighted the importance of client focus and a team approach to quality improvement.
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2. 1.1 Introduction to Soft Drink Industry
The main production of soft drink was stored in 1830‘s & since then from those experimental
beginning there was an evolution until in 1781, when the world‘s first cola flavored beverage
was introduced.
These drinks were called soft drinks, only to separate them from hard alcoholic drinks. This
drinks do not contains alcohol & broadly specifying this beverages, includes a variety of
regulated carbonated soft drinks, diet & caffeine free drinks, bottled water juices, juice
drinks, sport drinks & even ready to drink tea/coffee packs. So we can say that soft drinks
mean carbonated drinks.
1.2 History of Soft Drinks
1798:-Theterm"sodawater"firstcoined.
1810:-First U.S. patent issued for the manufacture of imitation mineral water.
1819:-The "soda fountain" patented by Samuel Fahnestock
1835:-The first bottled soda water in the U.S
1850:-Amanualhand&footoperatedfilling&corkingdevice,firstusedforbottlingsodawater.
1851:-GingeralecreatedinIreland.
1861:-Theterm"pop"firstcoined.
1874:-Thefirstice-creamsodasold.
1876:- Root beer mass produced for public sale.
1881:-Thefirstcola-flavoredbeverageintroduced.
1885:-CharlesAdertoninvented"DrPepper"inWaco,Texas.
1886:-Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.
1892:-William Painter invented the crown bottle cap.
1898:-"Pepsi-Cola"isinventedbyCalebBradham.
1899:- The first patent issued for a glass blowing machine, used to produce glass bottles.
1913:-Gas motored trucks replaced horse drawn carriages as delivery vehicles.
1919:-TheAmericanBottlersofCarbonatedBeveragesformed.
1920:-TheU.S.Censusreportedthatmorethan5,000bottlersnowexist.
Early 1920's:-The first automatic vending machines dispensed sodas into cups.
3. 1923:-Six-packsoftdrinkcartonscalled"Hom-Paks"created.
1929:-The Howdy Company debuts its new drink "Bib-Label LithiatedLemon-Lime
Sodas" later called "7 up".InventedbyCharlesLeiperGrigg.
1934:-Applied color labels first used on soft drink bottles, the coloring was baked onthe face
ofthebottle.
1952:-The first diet soft drink sold called the "No-Cal Beverage" agingerale sold by
Kirsch.
1957:-Thefirstaluminumcansuse.
1959:-The first diet cola sold.
1962:-The pull-ring tab first marketed by the Pittsburgh Brewing Companyof Pittsburgh, PA.
Thepull-ringtabwasinventedbyAlcoa.
1963:-The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in
March,inventedbyErmalFrazeeofKettering,Ohio.
4.
5. 1.3 A Brief Insight - The FMCG Industry in India
Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) is
products that have a quick turnover and relatively low cost. Consumers generally put less
thought into the purchase of FMCG than they do for other products.
The Indian FMCG industry witnessed significant changes through the 1990s. Many players
had been facing several problems on account of increased competition from small and
regional players and from slow growth across its various product categories. As a result, most
of the companies were forced to revamp their product, marketing, distribution and customer
service strategies to strengthen their position in the market.
By the turn of the 20th century, the face of the Indian FMCG industry had changed
significantly. With the liberalization and growth of the Indian economy, the Indian customer
witnessed an increasing exposure to new domestic and foreign products through different
media, such as television and the Internet. Apart from this, social changes such as increase in
the number of nuclear families and the growing number of working couples resulting in
increased spending power also contributed to the increase in the Indian consumers' personal
consumption.
The realization of the customer's growing awareness and the need to meet changing
requirements and preferences on account of changing lifestyles required the FMCG
producing companies to formulate customer-centric strategies. These changes had a positive
impact, leading to the rapid growth in the FMCG industry. Increased availability of retail
space, rapid urbanization, and qualified manpower also boosted the growth of the organized
retailing sector.
HLL led the way in revolutionizing the product, market, distribution and service formats of
the FMCG industry by focusing on rural markets, direct distribution, creating new product,
distribution and service formats. The FMCG sector also received a boost by government led
6. initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the
country that witnessed firms moving away from outsourcing to manufacturing by investing in
the zones.
Though the absolute profit made on FMCG products is relatively small, they generally sell in
large numbers and so the cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass
layoffs every time the economy starts to dip. A person may put off buying a car but he will
not put off having his dinner.
Unlike other economy sectors, FMCG share float in a steady manner irrespective of global
market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.
The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian
Economy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is
the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth
Rs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides up
to 4 million jobs.
The FMCG sector consists of the following categories:
1.3.1 Personal Care
Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and
Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the
major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur
and Procter & Gamble.
1.3.2 Household Care
Fabric wash (Laundry soaps and synthetic detergents), Household cleaners
(Dish/Utensil/Floor/Toilet cleaners),Air fresheners, Insecticides and Mosquito
repellants, Metal polish and Furniture polish; the major players being; Hindustan
Lever Limited, Nirma and Ricket Colman.
7. 1.3.3 Branded and Packaged foods and beverages
Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads,
Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed
vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded
sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola,
Sosyo, Cadbury, Pepsi and Dabur.
1.3.4 Spirits and Tobacco The major players being; ITC, Godfrey, Philips and UB
1.4 A Brief Insight - Beverage Industry in India
In India, beverages form an important part of the lives of people. It is an industry, in which
the players constantly innovate, in order to come up with better products to gain more
consumers and satisfy the existing consumers.
8. Fig 1.1 Beverages in India
Beverages
Alcoholic
Non-
alcoholic
Carbonated
Cola Non-cola
Non-
carbonated
Non-cola
9. The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:
Alcoholic, non-alcoholic and sports beverages.
In-home consumption and out of home on premises consumption.
Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
Segmentation based on the amount of consumption i.e. high levels of consumption
and low levels of consumption.
If the behavioral patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as well as and to make
the industry more affordable.
Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:
The quality and the consistency of beverages needs to be enhanced so that consumers
are satisfied and they enjoy consuming beverages.
The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
Consumer education is a must to bring out benefits of beverage consumption whether
in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige
relevant to the category.
Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.
The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity,
for brand and sales growth in turn to add up to the overall growth of the food and
beverage industry in the economy.
10.
11. 2.1 Introduction
The brand name – SOSYO –was derived from the Latin word ‗Socious‘ which is related to
society. From ‗Socio‘ it gradually evolved in to SOSYO, a distinctive thirst quencher with a
unique taste that defies definition and has been relished over generations.
The brand has been given a new, contemporary look ever since it‘s repositioning as a
specialty drink in January ‘2010 with the catchy base line “Apna Desh Apna Drink”.
Besides ‗SOSYO‘ – Hajoori‘s has other brands like, ‗Kashmira Jeera Masala Soda, Lemee –
Lemon, Orange flavor, ‗Ginlim Soda‘-a gingerly lemon flavor and ‗Hajoori‘s plain Soda‘.
The various packing includes 200ml, 300ml. in the glass bottles and 350 ml, 500ml. and 1.5
liters in Pet take away and special packing in 300ml. glass bottles pet take away for exports.
Hajoori and Sons has over 100 flavors.
12.
13. 2.2 History
The Foundation was laid when a young boy in his teens – Abbas Abdul Rahim Hajoori began
his career selling aerated drinks made by various British Bottlers. Young Hajoori had the
tremendous vision to prove the competence of Indian brands VIS a- VIS foreign brands.
It was this vision that laid the foundation of a new era in the Indian soft drink industry in the
form of Hajoori & Sons which later came out with one of the phenomenal brands in India-
SOSYO.
Mr. Abbas Abdul Rahim Hajoori Mr. Mohsin Abdul Rahim Hajoori
Since, 1923 saw the foundation of Hajoori& Sons in Surat, Gujarat; but fate did not deem to
let the founder enjoy the success. The reins were taken over by Mr. Mohsin Abdul Rahim
Hajoori, after the untimely demise of his elder brother. He did not have to look back since
then. With the renewed vigor of the next generation, the business reached new heights in the
70‘s and 80‘s. Today SOSYO has become a formidable brand and is all set grow further.
14. 2.3 Vision
With A stronger base of over 50,000 retailer outlet, 5 sophisticated manufacturing plants (4 in
Gujarat and 1 in Mumbai) seven franchises and over 150 distributor‘s network, Sosyo is now
looking for trade to share its vision. Sosyo Now has a vision to grow as a National Brand
through Franchising Network with 40 Manufacturing Franchisees all over India.
2.4 Mission
Our mission is to build over selves a full fledge beverages company having an exceptional
hold on people‘s taste. With is unique and exclusive flavor.
2.5 Exports
Hajoori and Sons is gradually expanding its network to various countries. In our first attempt
of expansion, we have established a reputed name in Canada, UK, Australia, and other
countries with contract filling in the USA.
Our Brand: Sosyo, Kashmira, Lemee (Orange, Lemon, and Ginlim) and Soda are available in
various departmental stores of UAE, and various other cities of UK, USA, Canada,
Newzealand and Africa. Very soon franchise will set up plants in the USA, UK, Canada and
other countries.
2.6 Quality Approval
Customer satisfaction is our sole motto. Our definition of customer includes every person
who comes in the business with us. We understand that our market and our industry are fast
changing and we accept that change brings the opportunity to grow and improve.
That's why we are proactive in realizing new ideas and encouraging innovation in everything
we do. We operate our business in the same way we lead our personal lives. We are honest,
open and generous. This is a moral choice - but it is also a commercial imperative. Our
15. market reputation depends on how we behave. To maintain the trust and confidence of our
customers, suppliers, colleagues and employees, we act with integrity at all times. And by
acting with integrity, we in turn get the best from others.
We recognize the importance of individuals and value their contribution. We are all team
members and yet retain a strong personal accountability - and so we recognize and reward
both individual and collective achievement in order to encourage further and greater
achievement in the future.
2.7 Franchisee Network
Sosyo is now looking for business partners to share its vision. The profile we are looking for
is growth desirous, progressive with an open mind and ready to take on the challenges.
What we offer is full technical support and guidance in erection and commissioning of the
plant in selection and training of man power, advertising and marketing support and of course
world class specialty products.
Franchisee Network
Sosyo Product - Mumbai – Branch of Hajoori & Sons
Indian Square Beverages – Ahmadabad
Giriraj Beverages – Rajkot
Kanchan Bottling – Porbander
2.8 Setups
Hajoori and Sons has a fully automated state- of-the-art plant in Surat, Gujarat. To cater to its
demands in every district, cities, town and villages the company has setup plants in Mumbai,
Surat, Vadodara, another in Rajkot to cater to surendranagars, Kachchh Ahmadabad, Rajkot,
and Porbander. To cater to the demands in the U.S market the company has setup contract
filling in 2 major places in the U.S.
16. 2.9 New Setup
We are also planning to set up our manufacturing capacity at Jaipur and Indore for which
active planning is going on.
2.10 Contact
Hajoori & Sons
Plot no 243/244, Bhatpore G.I.D.C., Ichchapore, Hazira
Road, Surat, Gujarat-394 510, India
Ph. No - +91-0261-2915255/ 2915277
Email: hajooriandsons_sosyo@yahoo.co.in
Website: http://www.sosyo-thesoftdrink.com
17. 2.11 Organization Structure
Abbas
Hajoori
(Chairman)
HR
Assistant
Manager
Helper
Cashier Accountant Auditor
Sales
Executiv
e
Sales
Superviso
r
Salesman
Assistant
Chemist
Helper Helper
Supervisor
Labore
r
Checkin
g
Washing
Jayrambhai
(Finance
Manager)
Fatima
Badri (HR
Manager)
Hyderbhai
Hajoori
(Director)
Michael
George
(Marketing
Manager)
Rafiq Raje
(Production
Manager)
Mr.Natawala
(Dispatch
Manager)
Chief
Chemist
EngineerForman
Expense
Holder
Diploma
Holder
Helper
18.
19. 3.1 Introduction
In Hajoori & sons the main activities in HRM are employee welfare activities, because
company believes that if worker are fit, happy, satisfied with company they feel better in
working in company and gives best of them. So for that mission company performs many
different activities.
Human Resource Management is that part of management which is concerned with people at
work and their relationship within the organization. The term Human Resource Management
refers to the management of personnel in the organization of any company to achieve the
predetermined goal. The duty of the personnel manager is to look after the personnel
20. department and various functions of the personnel like recruitment, selection, promotion,
transfer, etc.
A formal definition of HRM is as follows:
Human Resource Management is the planning, organizing, directing and controlling of the
procurement, development, compensation, integration, maintenance and reproduction of
human resources to the end that individual, organization and societal objectives are
accomplished.
3.2 Organization Structure of HR Department
Organization Structure of Hajoori & Sons
Fig 3.1 HRM Department
HR Manager
HR Assistant
21. 3.3 Activities of Human Resource Department
To formulate HR policy of the company.
Plan for the workforce required in the company.
To recruit and select healthy and wide spectrum of people.
Provide welfare facility to enhance the occupational skill of employees.
To maintain good relationship with personal for smooth running of functions in the
organization.
To maintain good relationship with other organization.
To carried out administrative activities like transport & security.
3.4 Human Resource Planning
Human resource planning is the process of details of manpower recruitment and mean
of meeting the recruitment in order to carry out the integrated plan of the
organization.
Human resource planning is very important task for HR department.
HR department decides right number of people and right kind of people at the right
place at the right time.
HR department is planning the necessary program of recruitment selection etc.
Now a day the HRP department of the ‗Hajoori & sons‘ is very busy in the HRP process
because it has to maintain the day to day activities of the current unit. Moreover in new
manufacturing unit is under construction as company is expanding its manufacturing
activities because of the growth of the business. The HRP process is done in the company for
various department like in production, sale, finance etc. generally in the company the HRP
process contents the documents called ―STRENGTH REPORT‖ which includes information
such as serial no, workers, strength including all unit and staff.
22. 3.5 Recruitment and Selection
A. Recruitment
―Recruitment is the process of searching for prospective employees and stimulating and
encouraging them to apply for jobs in an organization‖.
Sources of Recruitment
The company has mainly two type of manpower which is divided into labor work force and
managerial staff.
The sources of recruitment are broadly categorized into
Fig 3.2 Source of Recruitment
Sources of
Recruitment
Internal
Recruitment
External
Recruitment
23. I. Internal Recruitment
In the internal recruitment the main sources are present employees, employee‘s referrals. The
executives, technicians, salesman, loader, etc. are promoted internally so they become
internal source of recruitment. Salesman also bring their relatives, friends, etc as the need
arise in the company. So it does not require much time and can be done as and when required.
The internal source is reliable as they are in direct contact with the company from long time.
II. External Recruitment
External source of recruitment are also equally used by the company. Here in the company
the main external source of recruitment consist of walk-ins, talk-ins, advertisement, and
competitors. For the labor work force walk-ins and talk-ins is used. Advertisement and
competitor are also used as source of recruitment. The company gives advertisement in the
local newspaper and television. The company gives advertisement in the SHIV CHANNEL,
DEV CHANNEL. They give advertisement in the local Guajarati newspaper.
A. Selection
Selection is the process of differentiating between applicants in order to identify and hire
those with the greater likelihood of success in selection process begins with the rise in the
requirement of manpower. As there is rise in requirement of manpower the company uses the
internal and external source of recruitment. According to the requirement of the post the
sources are used. Thereafter the selection is done.
Various stages involved in the selection process are:
24. Fig 3.3 Selection Process
Application
Form
Preliminary
Interview
Reference
check
Final
Approval
Selection
25. 3.3.1 Application Form
After various sources are used then various application are received. An applicant is required
to give full bio-data with educational qualification, experience. Thereafter all the application
are scrutinized and thereafter all the applicants are called for the interview process.
3.3.2 Preliminary Interview
In the interview process the applicants are judged on different factors as their communication
skills, convincing power because the salesman is required to convince the customer when
they go for selling, also trustworthiness and honesty is judged because it is mainly cash
business, etc.
3.3.3 Reference Check
Thereafter the reference check process follows. It is mainly carried out for the higher post i.e.
for executives, manager, supervisors, and technicians. For the labor work force all the steps
are not followed as they are sometimes recruited informally.
3.3.4 Final Approval
The above steps are completed the selection committee than decides as whom- a point. The
applicant to be appointed must meet the required standard then and only he can be appointed.
The committee takes the decision and gives the final approval.
3.3.5 Selection
After the above steps are completed the selection committee then decides as whom to
appoint. The applicant to be appointed must meet the required standard then and then only he
can be appointed. The committee takes the decision and gives the final approval. The
applicant is offered job and fulfilling some legal formality the employee join the job.
26. 3.6 Induction Training
Induction, also called orientation, is designed to provide a new employee with the
information he or she need to function comfortably and effectively in the organization. The
main purpose of the induction training is to make employees feel at home in the new
environment. Organizations are known to spend few days or weeks for induction training. It
is known that employees feel anxious on entering the organization. The employees worry
about their performance on the new jobs.
In Hajoori & Sons Company, induction training is provided mainly to the employee of the
production and marketing department. Here the employees are made to work with
experienced employee for two-three day and are provided with all the information needed for
efficient working in the organization. They are made to interact with different employees
with whom they are to work also with the other employees of the company.
3.7 Training and Development
The newly employed candidate is given training for the job he is to do. This training is being
given by the manager of the department in which he works. Personal attention is also given
on him so that he can cope up with his job as soon as possible.
Now a day‘s mostly all the company imparts the training to the fresher although they posses
specialized knowledge because training provides the practical knowledge and if the employee
is not fresher then also training helps to know the working of the company, its employees and
many other things required for the efficient and effective working of the company. Training
is one of the best tools for increasing the performance of the employees and overall
performance of the company.
In Hajoori & Sons Company training is imparted to the employees but in a particular
department only. Most of the trainees are from the marketing department also there are
trainees from other department but small in number.
27. First of all the company identify whether the training is to be given to the employees or not.
Here training is provided mainly to the new comer. In the production department when a new
plant is installed or when a new technology is adapted then training is given to the laboratory
chemist, technicians, engineers and laborers. Even when there is constant reduction in the
production the company calls the experts from outside and arrange for seminars and two-
three day program. So mainly is provided to the employees of the production and marketing
department.
After the training needs are identified then training is imparted. In the marketing department
newly appointed employee is sent with the salesman on the company‘s vehicle. Here the
main purpose is to make the employee aware of the route and the customers. Also they are
trained as how to communicate with the customer, how to behave, how to convince the
customer. They are trained as how to response to the customer‘s complain and their review
from the customer about the company‘s as well as competitors products. This also helps them
to solve the problem easily and conveniently. Also the loaders are being trained for efficient
loading of the carats and also changing of the bottles from one carat to another so as to
minimize the time and also prevent the breakage of the bottle. At the end of the day all the
salesman are required to do the sorting out of the bottles so here perfection is needed for
transferring of the bottle and minimization of time.
28. 3.8 Internal Mobility
There are three type of internal mobility
Fig 3.4 Types of Internal Mobility
Internal
Mobility
Promotion Transfer Demotion
29. 3.8.1 Promotion and Transfer
As the company is not a huge company and not employment is required, transfer of a
particular worker is not possible. Other branches of SOSYO are under development and not
yet stood up and this is also the reason for which transfer is not possible.
In the Hajoori & Sons all the decisions related to the promotion, demotion and increment is
taken by the owner of the company. In Hajoori & Sons promotion, demotion and increment
takes place rarely because here the labor workforce is more.
Promotion mainly takes place of the employees in the production and marketing department.
For the promotion, demotion and increment the performance, attendance, attitudes, behavior,
experience of the employees are taken into consideration.
Similarly, the promotion is done for all the post of different department of company in the
same manner.
3.9 Wage and Salary
The wage and salary structure of Hajoori & Sons is totally different from all other companies.
At the time of appointment the salary to be given is fixed and when actually paid if any
deduction for his holidays is to be done is done and then difference amount is paid.
3.9.1 Components of Wage and Salary
Basic Salary
Salesman – Rs.6000 per month
Loader – Rs.150 to Rs.200 per day
Laboratory chemist – Rs.13000 to 16000 per month
30. Allowances
HRA – Rs.3000
Mobile – Rs. 800 to Rs.1300
City Outlay – Actual
Convenience – Rs.100
Incentives – Based on Performance
3.9.2 Salary Structure
Actual basic salary
+ Provident fund – 12% on actual basic salary
+ Allowance
+Bonus
TOTAL
NOTE: along with the above Facilities, Pure cold drinking water, Rest Room, Change Room,
Refreshment Room, Wash Room, Housing Facilities (Including marchhardani and Gas
cylinder facilities).
3.10 Motivation System
Motivation increases the performance of the employees and increases the confidence of the
employees, quality of work.
In Hajoori & Sons they compare the actual performance among the employees and if any
employee‘s performance is bad then proper motivation is given to that person and according
to this, corrective action are taken.
31. 3.11 Employee Welfare & Corporate Social Responsibility (CSR)
3.11.1 Employee Welfare
The workers and the staff in SOSYO works together like a family. Special attention is also given on
the workers. If a worker meets with an accident in or outside the company, the company takes the
responsibility to cure the worker from the accident by admitting him/her in the hospital. All the
expenses are incurred by the company during the workers treatment.
3.11.2 Corporate Social Responsibility
Build a Sosyo circle to reduce the number of accidents, take active part in sponsorship for
sports activity, tree plantation program (from Sub jail to Athwa gate to Parle point), other.
Sosyo circle
32. 3.12 Performance Appraisal
Performance appraisal is also an important part of the human resource management as it
encourages, boost the performance of the employee which overall improves the performance
of the company. So performance appraisal is carried out in almost all the company because it
is not only for the benefit of employee but also for company.
Firstly various standards are set up considering all the factors. These factors consist of
honesty, work quality, job knowledge, attendance, physical condition and health, etc. these
standards are then communicated to the employees. For e.g. the salesman is given the target
to sell 1200 carats in a week. So before hand the employees are instructed with the standards
so they can also put up to the standards.
After the performance standards are established and communicated it is measured. Daily
record to attendance and sales by each salesman is kept. Also how much time the leave is
taken by the employee, his relation with the customer, honesty, etc. are all taken into in the
consideration. Thereafter all the standards are compared with the actual standards. Actual
standards achieved are positive as well negative. These standards are discussed with the
employees so that they come to know about their strengths and weakness. Also the reason are
analyzed and discussed. The reasons for the positive deviation can be going to all the stores
in the interior regions regularly at distant place and fulfilling the requirement of the customer
thus increasing the sale. Similarly there can be negative reason also. Therefore all the reasons
are taken into consideration for the improvement of the employees.
The results of the appraisal are discussed with the employees and deviations in the standards
are also taken care of the company takes the corrective action for the improvement in the
performance of the employees and also company.
33. 3.13 Job Description And Specification
The data collection through job analysis helps describe the job. Job description describes the
work performed, the skills required, specific condition under which the job is to be performed
and the personal traits required for the performer. Job analysis and Job description are having
overlapping characteristics. However, while the job analysis is basically collection
information about how the job is performed, the next step the job description.
A good job description:
Gives clear and easily understandable picture of the job.
In details gives all the main tasks of the job the job and how are they performed.
Details the guidance and direction received from the supervisor in performed.
With the help of the job analysis and job description, the organization able to list the
qualification, experience, special person traits and attributes required in a person to
performed a particular job. It helps in matching these characteristic required in an incumbent
and the candidate either for promotion for recruitment of outside candidate.
34. Job description for various posts in Hajoori & Sons is follows:
Fig 3.5 Various Post of Job Description
Job
Description
Marketing
Manager
Plant
Manager
Dispatch
Manager
Finance
Manager
Supervison
s
Labour
Relation
and Trade
Union
Employme
nt Records
35. 3.13.1 Marketing Manager
Mr. Michel George is a marketing manager who handles all over the market. He keeps watch
on the sales. He offers new skims to the company. His thinks about how to increase the sales.
3.13.2 Plant Manager
Mr. R.M Raje is a plant manager he keep watch on the production activities. He handles all
workers of production department. He also distributes wages to the worker. He maintains the
plan. He keeps the stock of the raw material. He solves the problem of the workers.
3.13.3 Dispatch Manager
Dispatch manager keeps watch on the distribution of carats of bottles.
3.13.4 Finance Manager
Finance manager handles all the activities regarding finance.
3.13.5 Supervisors
There are different supervisors in the entire department. They keep watch on the company.
3.13.6 Labour Relation And Trade Union
There is no trade union as it is a small scale private company. As there is no labor union all
the decisions regarding the employees are taken by the company directly interacting with the
employees labor relation means the relation between the company and the employee. All the
company maintains good relation with the employees and laborer which increases the
laborer‘s efficiency. Good relation helps to develop and maintain harmonious relation
between the management and labor. Also all the forms of the industrial conflicts are avoided
and to ensure industrial peace by providing better working and living standards to workers.
36. In Hajoori & Sons company good labor relations are maintained with all the employees in all
the departments. Good labor relation includes satisfying the employees with the occasional
needs. The employee must have job satisfaction of what he does and also from what is being
provided by the company. The employees are provided with the occasional leave, also urgent
cash withdrawal of small amount. All these points also matter as they develop and maintain
the labour relation. All the decisions are taken in confirmation with employees.
3.13.7 Employment Records
At the time of joining the organization he or she has to fill up a form and submit in the
organization. This form contains the information regarding his personal life, which is stored
in computers and is maintained by establishment sectors.
The name, birth date, age, height, weight, power classes, marks of identification, permanent
address, nationality, father‘s name, married status etc. of the applicant is there. The academic
data, percentage obtained in S.S.C, other vocational qualification, past and present
employment data, language known, hobbies, interest, information regarding accomplishment,
achievement, reference etc. Attach certificate Xerox copy of certificate in support of age,
academic qualification, experience, etc.
3.14 Welfare Activities
The basic welfare service includes the following:
Adequate and clean washing facility separately for males and females.
Medical aid to worker and employees.
First aid box to all transport vehicles.
Lockers and sanitary latrines separately for males and females.
Clean drinking water facility.
The company also carried out some special welfare activities.
Once year picnic arranged by the company for the employees.
Blood donation once in year.
37.
38. 4.1 Introduction
Production is the process of converting the raw material or the other inputs into the product
for the further production or the finished goods or services so at the utility of inputs is created
or enhanced and the needs of consumer are satisfied.
Example: the process of converting the raw materials such as water, Sugar, CO2, Crown,
Caustic Soda, Syrup, Carmon Color, Citric acid, etc. into finished good(SOSYO).
39. 4.2 Organization Structure of Production Department
Fig 4.1 Structure of Production Department
Production
Department
Chief
Laboratory
Chemist
Assistant
Laboratory
Chemist
Forman
Supervisor
Helper
Checking Washing
Laborer
Engineer
Diploma
Holder
Helper
Expense
Holder
Helper
40. 4.3 Raw Material
Raw materials are material which is used to manufacture finished goods.
Raw materials of Hajoori & Sons are water, Sugar, Syrup, Carbon dioxide, Caustic Soda,
Crown, Citric Acid, Carmon Color, Pre Form, Added flavors etc.
4.3.1 Sources of Raw Material
Fig 4.2 Source of Raw Material
• SMCWater
• Local Market(shril Kastoor
Chand, Ambika Trading, Surat)Sugar
• Marfatia Agency, SuratCarbon Dioxode
• Leo Tech, Bhojani Packaging, RajkotCrown
• Royal Glass & Ceramics, MumbaiGlass Bottles
• Shree Ganesh, SuratCaustic Soda
• Sayagi Synthetics, SuratCarmon Colour
• Bharat Starch, VadodaraCitric Acid
• Chemcho Ltd, SuratPre Form
41. 4.3.2 Production Process
Fig 4.3 Production Process
Raw Material
Washing
Stage
Empty
Inspection
Stage
Filling Stage
Capping
Stage
Filled
Inspection
Final
Inspection
42. 4.3.2.1 Washing Stage
Production process starts with the loading of empty bottles in the washing machine. Before
that empty bottles are taken from the carat and are placed on the conveyor which reaches the
washing machine bottles are arranged properly and enters the machine in lots of 10 bottles. In
the washing machine bottles are passing through 4 compartments.
In the 1st
compartment all the dust and sand is removed with plain water.
In the 2nd
compartment the oil, bacteria, etc are removed with chlorine water.
In the 3rd
compartment bottles gets washed with caustic solution.
In the 4th
compartment the second time bottles are washed with plain water.
After the bottles are washed, they are moved for the next stage.
4.3.2.2 Inspection Stage
In the stage, the 2 time bottles are inspected.
1st
time the empty bottles are inspected.
2nd
time filled inspection is done.
If any defect is found then the bottles is disposed and other bottles are allowed to move for
the next stage.
4.3.2.3 Filling and Capping Stage
The filling and sealing of bottles is done on filling and crimping machine. It is a combined
activity. The bottles are conveyed to filler machine on conveyor. The filler machine keeps on
revolving. It fills the beverage in the bottles and sends it to crimping machine where the
bottles are sealed with a crown. If the operator finds the improper level, he level the bottles
manually and let go the bottles for crowning and then for the next stage.
4.3.2.4 Final Inspection Stage
After crowning the bottles are checked again whether there is any dirt left. One person checks
the bottles after crowning in light. If any impurity is found the bottle is immediately disposed
off and rests of the bottles are sends at store.
43. 4.4 Plant Location
As we know that the company does the production of the soft drink so the production is done
on mass basis. As the production is done on the mass basis it will have product layout. So the
business requires certain minimum volume. Therefore it is big layout. So the number of
people required, machine required will be large.
Here in the production process syrup making machine is used from which smoke comes out
so it is placed on 2nd
floor. Similarly the brix making machine is also placed near to syrup
making machine as this machine produce heat.
The company is in the industrial area so this also effects the plant location. As there are male
and female workers and employees there are separated toilets, changing rooms. There is
different water cooler drinking cooler in production, administration, office areas.
There is store room for raw material which is underground of production department. There
is a separate store area for the finished product at the back side of production area. In the
production process co2, citric acid, etc. this gas are dangerous to health so the production area
is separated than other department.
As this is mass production unit some decision are taken in advance regarding layout. The
production process is machine base so in future if new machine is installed then it requires
large space. So all this is taken care.
The company has truck and tempo for delivery the finished goods to the retailers. For these
vehicles there is a separate office for finance department, human resource department, and
administration office which include reception area.
44. There are many other general factors which affect the plant location. For e.g. if the plant is
located outside the city then the company have to pay octroi for their products, various taxes,
arrange for labor transportation facilities, some cottages and house for their living and regular
storage of raw material but if plant is located within the city they have to pay less octroi, less
transportation expense, 24 hours availability of electricity, easy distribution of goods in less
time and availability of raw material.
First it was in Zampa Bazaar but because of problems in transportation and conjunction they
shifted their plant in Hazira Road that is in industrial area. In this area they get 24 hours
electricity and water facility, availability of material and easy transportation which are
beneficial to company.
45. 4.5 Plant Layout
Fig 4.4 Plant Layout
Plant Layout
Terrace
Refreshment
Room/Canteen
Common Hall
Stairs
Syrup Room
Pet Blowing Room
P
i
p
e
L
i
n
e
Account Department
Sales &
Marketing
Owners
Room
Nescafe
Stall
HR Department
Stairs
Storage Room
Dispatching
Center
RO Water
Plant
Changing
Room
Office
Room
Production Plant
Quality Checking Lab
Rest Room
46. 4.6 Material Handling
The company uses different types of material handling equipment like Conveyors, Trolley,
Pipelines, Carats and Trucks. It can be further explained as below:
4.6.1 Conveyor
The company has different types of conveyors to carry the bottles to be processed into
different machines. Right from starting of production process the bottles are moved to the
next process through conveyor. Company has motor driven conveyor that has one metallic
belt on the rolling wheels and those conveyor that works on gravity i.e. no electric motor is
needed to run them.
4.6.2 Pipelines
Pipeline is also treated as material handling equipment as it carry and gaseous material. It is
used to transfer the carbon dioxide from cylinder in the manufacturing unit where it is
compressed to make it in the liquid form, then to shift it in the mixer where all the materials
are mixed and then the final liquid is prepared separately is brought from the main syrup tank
to small tank and then to filler machine through pipeline.
4.6.3 Trolleys
Trolleys are mainly used for transferring heavy carats with bottles from the store to the
trucks. Also when the carats are unloaded from trucks and moved from one place to another
trolley is used. For convenience trolleys are manually run by workers to carry heavy loads.
4.6.4 Carats
Carats are a very important material handling equipment as it is used to carry the bottles in
the lot of 24. Carats are mainly used for safety purpose so as to prevent the breakage of
bottles. So when the bottles are to be taken from one place to another it is kept in carats and
then taken. It is also convenient to carry bottle in group.
47. 4.6.5 Trucks
Trucks can also be considered as the material handling equipment as it is used for
transporting finished products. They carry carats from manufacturing place to the whole
sellers and retailers and also to the port for the export through steamers in the foreign
countries.
4.7 Stores Function
In store function two important procedures are consider. They are material receipt procedure,
material issue procedure.
4.7.1 Material Receipt Procedure
Material receipt procedure begins when the purchase order is placed. The suppliers send the
material within a day or two. Thereafter the material is received and the production manager
is informed. The material received is checked whether it is according to the purchase order.
Firstly the quantity checking is done. Thereafter the quality control manager checks the
quality of the material received and gives information. Sometime there can be material which
cannot be taken for production because it‘s poor quality.
After the confirmation is received from quality control manager, entries for both accepted
and rejected material is done in the register and thereafter all the material is send to the store.
Accepted and rejected material is stored separately. As and when material is requires for
production it is issued and according the entry is done, rejected material is send back to the
supplier and is replaced. Production manager takes the bill does the signature and after all the
process gets completed payment is done.
4.7.2 Material Issue Procedure
The material issue procedure begins with requirement of production in change. Production in
charge tells the production manager the authorized person and thereafter allows the issue of
material. The entry for the material issued is made in the register and that much stock is
deducted from the present stock of materials.
48. 4.8 Purchase Function
Purchase function begins with the preparation of purchase order. Production manager
prepares this purchase order. This purchase order is to the authorized person for checking.
After the authorized person sign the purchase order, order is placed though mail, telephone or
by fax. After receiving purchase order from company supplier checks it with the availability
of material and sends the material within a day or two and informs the company on sending
the material.
On receiving all the material from the supplier, all the material passes through the process of
quantity & quality. After all the material is accepted by the production manager then and then
only the payment is done. Payment is done by cash, cheques or by demand draft. Some
suppliers demand the payment along with the purchase order. So, demand draft is send along
with the purchase order to the suppliers.
4.9 Production Planning
First of the entire production plan is not prepared very formally but it is prepared on basis of
daily sales. At the end of the day when salesman returns to the factory after whole day
selling, report to the supervisor of distributor. These include the total number of sold and
unsold carats. The supervisor then calculates and total number of carats that are sold on
particular day of all salesman. He then gives that calculation to the plant manager. Plant
manager then look after it.
For example
If 50 carats of Sosyo are sold on particular days then manager don‘t start the plant to take
production of 50 carats. So he does the stock of 200 to 300 carats of a particular product and
then does the production. The same is followed for the other entire product (Kashmira,
Lemee, Soda, etc.) here the production is done in batch using manner and each batch contains
minimum of 200 carats but in exception case it can be low. Also if there is any additional
order (party order, marriage order, inauguration order etc.) on the basis of this production
plan is prepaid. Such orders are also important because it is in the big lot.
49. 4.10 Quality Control
Quality control includes various method of controlling the quality of the product. They are as
under:
4.10.1 Water Parameters
Fig 4.5 Water Parameters
• Analysis includes following parameters
H2O
• Hydrogen and Concentration
pH
• Total Hardness
Th
• Calcium Content
Ca
• Magnesium Content
Mg
• Chloride Content
Cl
• Phenolothepelien Alkalinity
Alk
• Residual Chlorine
Cl2
• Total Dissolve Solute
TDS
• Total Alkalinity
Alk
51. 4.10.3 Ready Syrup Quality Checking
Ready syrup includes the following parameters:
Fig 4.7 Parameters for Syrup
It includes proper syrup making method, Pasteurization System, Flavor Wise Mixing.
Standard
Volume and
Brix
Sugar Purity
Citric Acid
Purity
Sodium
Benzoate Purity
52. 10.4 Bottle Washer
One of the goals of quality control is to present the consumer with a product and for that
clean and sanitized bottle also plays an important role. Hence proper washing must be
ensured with the appropriate testing which includes:
Fig 4.8 Bottle Washer
Caustic Strength
Temperature
Caustic Carry
Over
Addictives
Percentage
Filled Water
Chlorine Content
53. 4.10.5 Finished Product Quality Checking
Finished product includes product checking and packaged quality checking. Once the bottles
are filled in the carats it becomes the finished product.
Product quality checking includes following parameter:
Fig 4.9 Finished Product Quality Checking
Brix
Gas Volume i.e.
Co2
Consumption
Crown Crimping
Fill Height
54. Packaged Quality checking considers the following points:
Fig 4.10 Packaged Quality Checking
Crown Specification as per norms
Apparent of Bottle
- Cheeps Mix
- Scufoi
- nRust
Cartoons
Levels of Per Bottles
Attractive Packing
55. 4.11 Inventory Control
In Hajoori & Sons, ABC Analysis technique is used for controlling the inventory. Usually a
firm has to maintain the several types of inventory. It is not desirable to keep the same degree
of control on all the items. The Hajoori & Sons play the maximum attention to those items
whose value is highest. The companies therefore identify which item should receive the most
effort in controlling. The firm is selecting and its approach to control investment in various
types of inventory. It uses the analytical approach, which is called ABC Analysis.
In large companies, the inventory consists of thousands of items and a number of employed
to control them. Their salaries and other expenses run into lakhs of rupees. It has been found
from experience that all items include in inventory are not of equal importance. Hence, more
attention must be devoted to the control of such items. All items are divided into 3 parts.
A-class of items:
In the ―A‖ class of item the major material consist of 65% of the consumption value and 25%
of total number of items. This item requires strict control over receipt, storage and issue
should be exercise over such items. As ―A‖ class of items require very less time for inventory
but the company maintains low stock of inventory for all items. The ―A‖ class of the item
includes Sugar, Citric Acid, Sodium Benzoate used in beverage and CO2 used only in Soda.
All these items have major value wise contribution. So are including in ―A‖ class of item.
B-class of items:
In the ―B‖ class of items the major material consists of 25% of consumption value and 20%
of the total number of item. It includes ascorbic acid (Vitamin C), Oil Grease, Lubricants,
Spare Parts of machine and maintenance cost.
C-class of items:
In the ―C‖ class of item the major material consists of 10% of consumption value and 55% of
the total number of item include essence (Taste, Color, and Ordure), Water, Crown and other
consumption items.
56.
57. 5.1 Introductions to Finance Management
The financial system is one of the most important inventions of modern society. Inventory
economic system, there exists an imbalance in the distribution of capital. There are people
with surplus fund and there are those with a deficit. A financial system functions as a
intermediary and facilitates the flow of funds from the areas of surplus to the area of deficits.
It provides the means by which saving are transformed into investment.
The term finance is used synonymously with money. In organism composed of number of
separate activities, each working for its own end but simultaneously making a contribution to
the system as a whole, some force is necessary to bring about direction and co-ordination of
economic activity and facilitate its smooth operation.
58. 5.2 Organization Structure of Finance Department
Fig 5.1 Structure of Finance Department
5.3 Working Capital Management
Working capital referred to as the life and the blood of business firm. In the event of working
being, ill-managed, the flow of money gets choked, raw material and suppliers are interrupted
dues and payment gets delay and clamor for clearance outstanding obligations and
commitment gather momentums working capital management conceded with the problems
that arise in attempting to manage current asset, current liabilities and the inter relationship
that exist between them.
Finance
Manager
Cashier
Raw
Material
Purchase
Accountant Auditor
59. 5.3.1 Factor Affecting For Working Capital in Hajoori and Sons Are As Under
Seasonal And Cyclical Fluctuation
Sales depend on the demand condition. Hajoori & sons experience seasonal and
cyclical fluctuation in the demand for their products. These business variations affect
the working capital requirement specially the temporary working requirement of the
firm. So when there is boom, sales increases and firm‘s investment in inventories and
debtors will also increases and vice-a-versa in depression.
Very Less Credit Period
The company sell‘s the goods mainly on the cash and cheque basis. The company
offer very less credit period of 1 to 2 weeks. So the investment in debtors is less. This
also affects the working capital requirement.
Credit Period For Suppliers
The credit period available to the company varies from suppliers to suppliers. Hajoori
& Sons buys some goods on cash and some cash on credits. Some suppliers ask for
the draft along with the purchase order while some supplier gives the credit period,
for suppliers 30 to 45 days.
Fluctuation Of Raw Material Price
Price level change affects the working capital requirement. Hajoori & Sons is
Company just in time inventory system. So when there is rise in the price of the raw
material the company has to pay for it as far it as whatever the price may be.
60. 5.3.2 Sources of Working Capital in Hajoori and Sons
Accruals
The major accruals items are wages and taxes. These are simply what the firm owes to
the employees and to the government. In Hajoori & Sons wages are paid for
fortnightly. Income tax and all other taxes are payable half yearly and yearly.
Accruals wages and accrued taxes are also source of finance.
Trade Credit
The most common utilizing source is trade credit. Trade credit represents the credit
extender by the supplier of the goods. It is a spontaneous source of finance in the
sense that it arises in the firm is considered creditworthy bt its suppliers. It represents
25% to 50% of short term financing. The period granted by its suppliers is 30 to 40
days.
Term Loan
Company considers term loan as term financing. It generally relies on this type of
financing. This represents a source of debt. Term loan is generally repayable in one
year. The company uses it to finance acquisition of fixed assets and working capital
margin. This benefit the company reducing its cost as its interest payments are tax
deductible for the company. They are generally for specified period of time. The
company can refund the debt when its financial position becomes sound. The major
lenders are investor, trust etc...
61. 5.4 Inventory Management
Inventory includes the value of row material, consumables, spares, work in progress, finished
goods and scrap in which the company‗s funds has been invested. Inventory blocks the
money. Production process can run smoothly without any interruption.
Marketing manager favors to keep high levels of finished Goods so the availability of product
is ensure if there is fluctuation of demand. On the other hand, finance manager wishes to keep
average stock because according to him, inventory blocks the money and which does not earn
interest.
5.4.1 ABC Analysis
Usually a firm has to maintain the several types of inventories. It is not desirable to keep the
same degree of control on all the items. The Hajoori & Sons play the maximum attention to
those items whose value is highest. The company therefore identity which item should be
receive the most effort in controlling. It uses the analytical approach, which is called ABC
analysis.
In large companies, the inventory consists of thousands of items and a number of employed
to control them. Their salaries and other expenses run into lakhs of rupees. It has been found
from experience that all items include in inventory are not of equal importance. Hence more
attention must be devoted to the control of such items. All items are divided into 3 parts.
A-Class of Items
In Hajoori & Sons the inventory covered 70% of total cost included in ―A‖ group:
Sugar
Carbon Dioxide
Citric Acid
Sodium Benzoate
62. B-Class of Items
In ―B‖ class of items the major material consists of 25% of consumption value and 20% of
total number of items. It includes:
Ascorbic Acid (Vitamin-C)
Oil-Grease
Lubricants
Spare-Parts of Machine
C-Class of Items
In the ―C‖ class of items the major materials consists of 10% of consumption value and 55%
of the total number of items include:
Assense (Taste, Color, Ordure)
Water
Crown
63. 5.5 Providing Funds To Different Departments
Finance department provides all kind of utility and liquidity of funds within the various
departments of the company. In the same manner the finance department provides fund and
effective utilization of the funds to all departments.
To Marketing Department
Marketing department requires some amount of funds to pay various kinds of expenses
occurred during the sales and promotion of project. Mostly marketing department requires the
funds flow for the following Expenses:
Promotional Expenses
Salas Commissions
Advertisement Expenditure
Labeling & Packing Cost
Distribution Cost
The finance department of the company provides funds for all of the necessary expenses.
Except this it also advises the marketing department for the efficient utilization of the funds.
To Hr Department
HR department requires money to pay to the personnel working for the organization. HR
department requires funds mostly to pay salaries and other administrative expenses the HR
department gets provided the following expanses.
Salaries And Wages
Bonus And Other Incentives
Welfare Expenses
Training And Development Cost Of Personnel
Some Other Expenses Related To Personal Of Organization
64. Every year good amount of funds is invested into the HR assets. The company believes that
the personnel of the organization are assets for them. And so the good amount of funds
should be invested on them so as to get higher returns.
To Production Department
Production department requires comparatively large amount of funds them other departments
of the company. The production of the product and its process requires huge amount of funds.
The expenses occurring into the production department are as follows.
Production Cost
Purchase Raw Material
Purchase Of Plant And Machineries
Factory Cost
Labor Cost
Fixed Over Heads
The expenses of the production are much higher so the finance department keeps an eye on
expenses occurred and try it cut down the product costs to get larger margins of product.
65. 5.6 Balance Sheet of Hajoori & Sons as on 31st
December 2010 and 2011
Particular Year
2010 2011
Sources of fund
Capital 128250 272250
Reserved and surplus 3308214 4006677
Loan funds - -
Unsecured Loan 529800 29400
Tax 411901 476901
Deposits:
From customers 637845 826313
From FLV Ltd. 38692 38692
Total 5054702 5650233
Application of fund
Fixed
Gross block 4831499 5672928
Less: Dep. 1224392 1516907
Less: lease terminal Adj. A/c 118859 118859
Net block 3488248 4037162
Capital work in progress 349681 6737709
Capital inventory 122859 376082
Asset Held For disposal 9130 9130
Investment 1500927 786226
Current assets loans & Advances
Inventories 56369 86275
Sundry debtors 401814 771123
Cash & Bank 73494 70262
Loans & Advances 148680 231395
Total current assets 680357 1159055
Less: C.L & Provision
Current Liability 926110 1146138
Provision 226946 277621
Total Current Liability 1153056 1423759
Net Current assets -472699 -264704
Misc. Expense 56556 32628
Total 5054702 5650233
66. 5.7 Income Expenditure Accounts of Hajoori & Sons as on 31st
December
2010 and 2011
Particular Years
2010 2011
Sales (Gross) 6205188 8359098
Less: Returns 45459 99820
Net sales 6159792 8259278
Less: COGS
Materials Consume 4138385 5969105
Personal expenses 209523 279958
Revenue expenses 24407 23928
Total 4372315 6272991
Gross profit 1787414 1986287
Less: operative expenses
Operating & other expenses 418856 564003
Depreciation 218000 296085
Net operative profit 1150558 1126199
Add: non trading income 183886 187944
Less: non trading expenses
Financial charges 29126 30191
Profit before taxes 1035318 1238952
Less: tax expenses 401387 395000
Profit after taxes 1960759 2570322
67. 5.8 Comparative Balance Sheet of Hajoori and Sons as on 31st
December 2010
and 2011
Particular Year Comparative Statement
2010 2011 Absolute
Change
Relative
Change
Sources of fund
Capital 128250 272250 144000 112.28
Reserved and surplus 3308214 4006677 698463 21.11
Loan funds - - - -
Unsecured Loan 529800 29400 -500400 -94.45
Tax 411901 476901 65000 15.78
Deposits:
From customers 637845 826313 188468 29.55
From FLV Ltd. 38692 38692 0 0.00
Total 5054702 5650233 595531 11.78
Application of fund
Fixed
Gross block 4831499 5672928 841429 17.42
Less: Dep. 1224392 1516907 292515 23.89
Less: lease terminal Adj. A/c 118859 118859 0 0.00
Net block 3488248 4037162 548914 15.74
Capital work in progress 349681 6737709 6388028 1826.82
Capital inventory 122859 376082 253223 206.11
Asset Held For disposal 9130 9130 0 0.00
Investment 1500927 786226 -714701 -47.62
Current assets loans & Advances
Inventories 56369 86275 29906 53.05
Sundry debtors 401814 771123 369309 91.91
Cash & Bank 73494 70262 -3232 -4.40
Loans & Advances 148680 231395 82715 55.63
Total current assets 680357 1159055 478698 70.36
Less: C.L & Provision
Current Liability 926110 1146138 220028 23.76
Provision 226946 277621 50675 22.33
Total Current Liability 1153056 1423759 270703 23.48
Net Current assets -472699 -264704 207995 -44.00
Misc. Expense 56556 32628 -23928 -42.31
Total 5054702 5650233 595531 11.78
68. 5.8.1 Comparative Income Expenditure A/C of Hajoori & Sons as on 31st
December
2010 and 2011
Particular Years Comparative Statement
2010 2011 Absolute
Change
Relative
Change
Sales (Gross) 6205188 8359098 2153910 34.71
Less: Returns 45459 99820 54361 119.58
Net sales 6159792 8259278 2099549 34.09
Less: COGS
Materials Consume 4138385 5969105 1830720 44.24
Personal expenses 209523 279958 70435 33.63
Revenue expenses 24407 23928 -479 -1.96
Total 4372315 6272991 1900676 43.47
Gross profit 1787414 1986287 198873 11.13
Less: operative
expenses
Operating & other
expenses
418856 564003 145147 34.65
Depreciation 218000 296085 78085 35.82
Net operative profit 1150558 1126199 -24359 -2.12
Add: non trading
income
183886 187944 4058 2.21
Less: non trading
expenses
Financial charges 29126 30191 1065 3.66
Profit before taxes 1035318 1238952 203634 19.87
Less: tax expenses 401387 395000 -6387 -1.59
Profit after taxes 1960759 2570322 609563 31.09
69. 5.9 Ratio Analysis
Meaning
A ratio is a comparison between a numerator and denominator.
In other words ratio is the relationship between two figures obtains by dividing the formal
with later. Ratio can be expressed in percentage, proportion or time.
Revenue Statement Ratios
Gross Profit Ratio
Operating Ratio
Net Profit Ratio
Stock Turnover Ratio
Balance Sheet Ratios
Current Ratio
Liquid Ratio
Quick Ratio
Proprietary Ratio
Gearing Ratio
Long Term Debt Ratio
70. 5.9.1 Revenue Statement Ratio
1. Gross Profit Ratio
Particulars 2010 2011
Gross profit 1787414 1986287
Net Sales 6159729 8259278
Gross Profit Ratio 29.02% 24.05%
Interpretation
Gross Profit Ratio shows the profitability of the company. Companies gross profit ratio in the
year 2010 is 29.02% and in year 2011 it is 24.05%.
2. Operating Ratio
Particular 2010 2011
COGS 6272991 8623708
Operating expenses 564003 794446
Net Sales 8259278 11943547
Operating Ratio 82.78% 78.86%
Interpretation
Operating Profit Ratio indicates the operating performance of the business. Operating Ratio
in 2010 is 82.78% while it reduces to 78.86% in 2011.
71. 3. Net Profit Ratio
Particular 2010 2011
1035318 1238952
6159729 8259278
Net Profit Ratio 16.81% 15.00%
Interpretation
Net Profit Ratio shows the overall profitability of the company. The company‘s net profit
ratio in 2010 was 19.81% while it is reduces to 15% in 2011.
4. Stock Turnover Ratio
Particular 2010 2011
COGS 6272991 8623708
Average Stock 462357 617976
Stock Turnover Ratio 13.57 13.95
Interpretation
Stock Turnover Ratio in 2010 was 13.57 times which increases to 13.95 times in 2011.
72. 5.9.2 Balance Sheet Ratios
1. Current Ratio
The C.R is the traditional ratio used to measure company liquidity. It is designed to assist the
decision maker in determining a firm‘s to pay its current liabilities. The higher current ratio
indicates the greater ability of the company to meet its immediate financial obligations.
Particular 2010 2011
680357 1159055
1153056 1423759
Current Ratio 0.59 : 1.00 0.81 : 1.00
Interpretation
Current Ratio shows the ability to repay short term commitment promptly. In year 2010,
Current ratio is 0.59: 1.00 and in year 2011, it is .081: 1.00. From the above we can say that
company‘s current ratio is increased in 2011.
2. Acid-Test Ratio
Particular 2010 2011
301657 361951
1146138 1834222
Acid-Test Ratio 0.26 : 1.00 0.20 : 1.00
73. Quick acid = Current assets – Debtors – Stock
Liquid Liabilities = Current Liabilities –Bank over draft.
Interpretation
Acid Test Ratios showing in year 2010, 0.23:1.00 and in year 2011, it is 0.20:1.00. From the
above we can say that company‘s acid test ratio is reduce in year 2011.
3. Proprietary Ratio
Particular 2010 2011
4278927 5631466
7041364 9493852
0.61 0.59
Interpretation
Proprietary Ratio showing in year 2010, 0.61 and in year 2011, it is 0.59. From the above we
can say that company‘s proprietary ratio is reduce in year 2011.
4. Debt Equity Ratio
74. Particular 2010 2011
1371306 1591326
4278927 5631466
0.32 0.28
Interpretation
Showing in year 2010, 0.32 and in year 2011, it is 0.28. From the above
we can say that company‘s debt equity ratio is reduce in year 2011.
5. Long Term Fund to Fixed Assets Ratio
Particular 2010 2011
3564463 4459061
4037162 4532298
0.88 0.98
75.
76. 6.1 Introduction to Marketing
Marketing is a societal process by which individuals and group obtain what they need and
want through creating, communicating, offering and freely exchanging product and services
of value with others. For a managerial definition, marketing is often described as ‗Art of
Selling product‘. But people are surprised when they hear that the most important part of
marketing is not selling! Selling is not only the tip of the marketing iceberg.
The marketing concept holds that the key to achieving its organizational goals consists of the
company being more effective than competitors in creating, delivering and communicating
superior customer value to its chosen target market.
6.2 Organizational Structure of Marketing Department
Fig 6.1 Structure of Marketing Department
Marketing
Manager
Sales
Executive
Sales
Supervisor
Sales Men
77. 6.3 Responsibilities of a Marketing Manager
Fig 6.2 Responsibilities of a Marketing Manager
Promote Sales
Development Of
New Product
Getting Feedback
From Customers
Setting New
Target Markets
Getting
Knowledge About
New Competitors
78. 6.4 Marketing Environment
Successful companies take an outside-inside view business. They recognize that the
marketing environment is constantly presenting new opportunities and threats, and they
understand the important of continuously reinvented one of its brands to keep up with the
changing marketing environment is Sosyo.
6.4.1 Macro Marketing Environments
6.4.1.1 Demographic Environment
Marketers are keenly interested in the size and growth rate of population in cities, regions &
nations; age distribution and ethnic mix; educational levels; household patterns; and regional
characteristics and movement, because people make up markets. Similarly Sosyo also keeps a
close watch on the population, the growth rate of population in cities and in rural areas and
also age which plays an important role in the demand of the product.
6.4.1.2 Economic Environment
Marketers require purchasing power as well as people. The available purchasing power in an
economy depends on current incomes, savings, debts and credit availability. Similarly Sosyo
considers the incomes, Savings, debts and credit availability of the consumers. Hence,
depending on the type of the market in a particular area, marketing is done accordingly.
6.4.1.3 Natural Environment
Marketers need to be aware of the threats and opportunities associated with four trends in
natural environment: the shortage of raw material, especially water; increased cost of energy;
increased pollution levels; and the changing role of governments. In the same way Sosyo is
also aware of the threats and opportunities which are associated with the trends in natural
environment.
79. 6.4.1.4 Technological Environment
One of the most dramatic forces shaping people‘s lives is technology. The marketers should
monitor the following trends in technology: the pace of change, the opportunities for
innovation, varying R&D budgets and increased regulations. Such of the above trends in
technology have been given greater importance Sosyo.
6.4.1.5 Political-Legal Environment
Marketing decisions are strongly affected by development in the Political and Legal
Environment. This environment is composed of laws, government agencies and pressure
groups that influence and limit various organizations and individuals. Marketing decisions in
Sosyo are made according to the development in these political and social environments.
6.4.1.6 Social-Cultural Environment
Society shapes our beliefs, values and norms. People absorb, almost unconsciously, a
worldview that defames their relationships to themselves, to others, to organizations, to
society and to the nature. Sosyo also has to face the social-cultural environment. The
existence of subcultures, shifts of secondary cultural values through time, etc are observed.
6.5 Customer Segmentation
Business marks can be segmented with some variables used in customer market
segmentation, such as geography, benefits and usage rate. But business marketers also use
other variables.
Hajoori and Sons is a soft drink company. It is medium scale company. The company serves
to middle class people and also to some of the upper class people. The company is not
serving only to some stores with which it has strong relationship quality and price. The
company serves those two need both quick and sudden delivery and services. The company
gives equal importance to large and small orders. The company serves to risk avoiding
customers. The company is serving to those who are loyal enough to their supplier and
customers.
80. 6.6 Target Market
India‘s middle class population is as big as entire US‘s population. The standard of living of
Indians has been steadily increasing. A suitable GDP growth of around 8%-9% is going to
take India into a different league in the coming years. The rise in disposal incomes of Indian
population is expected to spur demand for the most of the consumer goods. To take the
advantage of this consumer boom of the 21st
century, Hajoori & Sons is embarking on a new
venture to make a dent in the city of Mumbai and then slowly expanding to the other parts of
the country.
6.7 Industrial Buying Behavior
In Hajoori & Sons the finished goods are sold to the customer directly by going at their store
and as such no orders are taken expect special orders. Here the salesman regularly goes to the
customers and supply them the goods as per their requirement.
If the customers need the goods urgently, they contact directly at the company through
telephone. They specify the quantity of brand they need, place to deliver, data and time of
delivery, etc also the order of marriage, party, inauguration, meeting etc is taken. If any
customer has to give a large order, they give order before 2-3 days so that company can
manage efficiently. The customer checks the order and verify and signature of the customer is
taken on the sales bill. So in such manner customer orders are processed.
6.8 4p’s Marketing
Product
Price
Place
Promotion
81. 6.8.1 Product
With success in soft drink markets, Hajoori & Sons has developed into a full spectrum Soft
Drinks Company with a variety of products. We don‘t call these as mere products but tastes
of people. Our products are:
1) Sosyo
The oldest and one and only all Indian fizz drink. For decades, it has retained its unique taste
and rules hearts of millions. Sosyo is the only indigenously made soft drink in India. People
feel Sosyo tastes like alcohol, but it is not. Sosyo is a cider-type fruit drink made of heady
apple and grape cocktail that packs quite a punch when has absolutely chilled.
Sosyo Soda Logo Sosyo Soda Bottle
It‘s a non- cola its different having a unique taste. It’s a mixed fruit flavor.
82. 2) Kashmira Soda
Jeera masala soda is very popular among people as a ―digestive drink‖ has a different
satisfaction after a heavy meal. Kashmira is traditional Indian Spicy flavor having many
spices. It has an Authentic -Ethnic, Taste which also helps indigestive. Digestive hub),
especially with people who eat rich, oily and spicy foods.
Kashmira Soda Logo Kashmira Soda Bottle
3) Lemee
There are 2 flavors available in Lemee soft drinks which are
Lemee Logo
83. Lemee Orange
Lemee Orange with orange tangy
Flavor, it‘s cool — Tangy – Soothing
Lemee Misty
Lemee Misty a cloudy lemon-‗n‘-lime flavored a good thirst
quencher contains vitamin C good for health.
84. 4) Hajoori Soda
The soda with extra sparkle, extra bubbles, extra power-refreshing on its own, great in
company.
Hajoori Soda Logo Hajoori Soda Bottle
In a nutshell, its (Sosyo) product can be described as-
SOSYO: a unique combination of natural ingredients-a great taste sensation;
LEMME MISTY: a tangy lemon-‗n‘-lime flavored thirst quencher with vitamin C;
LEMME ORANGE: with orange flavor, soft and cool;
KASMIRA: the only Masala Soda-a spicy appetizer-cum-digestive.
6.8.1.2 Packaging
Packaging is defamed as all activities of designing and producing the container of the
product. Most of the packaging includes up to three levels of materials. People at Sosyo
believe that packages can build brand equity and drive sales. The packages are buyer‘s first
encounter with product and it must be capable of turning on or off. Packaging also affects the
consumer‘s later product experiences.
85. Sosyo soft drink comes in a bottle, which is the primary pack. In case of the local distribution
the bottles are being sold directly but for the outside sales it comes in the crates and each
crates contains 24 bottles. The bottles are packed by pressurized crowns. And in the case of
overseas sales they use cardboard box. And each cardboard box contains 12 bottles. This
cardboard box is packed into the corrugated box containing six dozen boxes.
The use packages with the attractive graphics and logos showing the product information and
specialized features so that the customer can pick the product according to his needs. The
packages also contain some special trademarks and copy righted logos so the initiators can‘t
copy the product. The brand and logo of Sosyo is as shown under:
The various packaging include 200ml; 500ml; 300ml in glass bottles (returnable) and 500ml
and 1.5ltr in PET segment (non-returnable).
6.8.1.3 Labeling
Label may be a simple tag attached to the product or an elaborated graphic that is part of
package. It might carry only the brand name, or a great deal of information. Even if the seller
prefers a simple label, the law may require more.
According to the marketing manager of the Sosyo the labels are important tools to market
their product in the following ways.
It identifies the product and the brand name ―SOSYO‖
It grades the product in several categories.
It describes the special features of the product.
Sosyo uses plastic labels to promote the product. They use this label for the PET bottles and
for glass bottles they use printed logo of Sosyo as the brand label.
86. Brand Sosyo
The brand name ―SOSYO‖ was derived from the Latin ―SOCIOUS‖ meaning that is related
to society. From ―SOCIO‖ it gradually evolved into ―SOSYO‖, a distinctive thirst quencher
with a unique taste that defines definition and has been relished over generation.
Originally Sosyo was called ―WHISKY NO‖, to attract alcoholics in the dry state of Gujarat,
India. It was sealed with a marble in a factory in Salabatpura by Hajoori & Sons. The present
name was derived from Latin word ‗Socious‘, since it became a social drink. The name
‗Whisky No‘ was derived from the fact that Sosyo tastes like alcohol.
The brand has been given a new, contemporary look ever since it‘s responding, as a specialty
drink in November-98 with the catchy base line “THE TASTE WITH THE TWIST”.
6.8.2 Price
6.8.2.1 Pricing Policy
Deciding the pricing policy is an important decision in any organization. As usual every firm
sets the price for its product or service whether it is manufacturing or service firm. Financial
managers with the help of the production and other department set up the price. Generally
pricing policy is decided after considering several factors.
Company decides per unit price of product by following formula:
Here, variable costs are raw material cost, administration cost, packing cost and distribution
cost.
Here, fixed costs are processing cost and machinery cost.
87. 6.8.2.2 Price Setting
Prices are set by input valuation, considering production activity cost, cost of raw material,
buffer margin, other cost and profit margin. Sometimes due to uncertainty in sugar prices,
transportation cost, etc. costs also increases. To avoid such situation, the company keeps a
margin on its product prices before adding profit margin.
A lot of research regarding prevailing price of the product in market is done. Before deciding
price of the product, competitor‘s price and offers also considered.
For example, on 500 ml bottle of Sosyo, 100 ml free. Once the company enters the
competitor‘s area a long chain of customers is established.
Company offers discount to customers if they are competitor‘s customers having a very good
relationship with the company. Price discount are based on sales volume i.e. number of
bottles a customer or agent or shopkeeper purchases. There is no fixed discount percentage
decided. Prices are mostly very stable. Frequent fluctuation does not occur, as it is a
competitive market. If a price of raw materials such as sugar increases, the company does not
increase its final price in spite of margin are reduced.
Customers need to advance before hand and remaining payment on the delivery of the
bottles. In case of good reputation of customers, the payment is delayed for a certain period
decided by the director. Hajoori & Sons give 15% credit period. The company holds a very
stable pricing policy with frequent fluctuations.
88. 6.8.2.3 Prices of Different Product
Wholesale Price
Nameml 200 ml/crate 300 ml/crate 500ml/box 1.5 ltr/box
Sosyo 156 204 460 360
Kashmira 132 204 460 360
Lemee 132 204 460 360
Hajoori Soda - 84 240 189
1 Crate = 24 Bottles
1 box of 500 ml = 24 pc
1 box of 1.5 ltr = 9 pc
Retail Price
Nameml 200 ml 300 ml 500 ml 1.5 ltr
Sosyo 8 10 22 45
Kashmira 8 10 22 45
Lemee 8 10 22 45
Hajoori Soda - 5 12 25
From this price policy of company the retailers gets more profit around 1.5rs from each price
of any soft drink of Hajoori & Sons; which is quite good compare to other competitors.
89. 6.8.2.4 Competitors
Hajoori & Sons PepsiCo Coca Cola Heman Goldi
Sosyo Pepsi Coke Limey Goldi
Kashmira Miranda Thumps Up Orange G3
Lemee 7 Up Fanta Misty Zira-Sip
Hajoori Soda Mountain Dew Sprite Masala Soda Leeme
Sosyo Soda Slice Kinley Orange
Maaza
COMPETITORS PRICES
HAJOORI & SONS
200 Ml (24) 300 Ml (24) 500 Ml (24) 1.5 Ltr (9)
Sosyo 120 164 396 315
Kashmira 120 164 396 315
Lemee 120 164 396 315
Hajoori Soda - 84 210 180
Sosyo Soda - 72 - -
PepsiCo
200 ml (24) 300 ml (24) 500 ml (24) 1.5 Ltr (12)
Pepsi 148 216 451 476
Miranda 148 216 451 482
7 Up 148 216 451 482
Mountain Dew 148 216 451 482
Slice 148 216 451 482
90. Coca-Cola
200 ml (24) 300 ml (24) 500 ml (24) 1.5 Ltr (12)
Coke 125 216 451 482
Thumps Up 125 216 451 482
Fanta 125 216 451 482
Sprite 125 216 451 482
Kinley - 126 261 482
Maaza 125 216 565 482
Goldi
200 ml (24)
Goldi 50
G3 96
zira-sip 96
Leeme 50
Orange 50
Heman
200 ml (24) 300 ml (24)
Limey 96 144
Orange 96 144
Misty 96 144
Masala soda 96 144
The figure mentioned in bracket along with the size is the number of bottles in each carat.
The margin given to the retailer is 50ps to 75ps by the multinational company and the local
company gives 75ps to 1 Rs. The salesmen are given commission of 1.50 Rs. on selling of
each carat. Even the distribution channel of the competitor company is more or less same as
this company.
91. 6.8.3 Place
Channel of distribution is the chain through which the product of the company passes from
factory to final consumer so marketing channel performs the work of moving goods from
purchaser to consumers. Different companies are using different channels. It overcomes the
time, place and possession gap that separates goods from services for those who need or want
them. The company should have the flexible channel for distribution so that in future it can
be easily changes according to the requirement.
A marketing channel performs the work of moving goods from purchaser to customers. It
overcomes the time and possession gap that separates goods and services for those who need
or want them. The distribution channel of Hajoori & Sons in Surat city and parts of Gujarat
state is undertake by J.S. Distributors.
They gather information about potential and current customers, competitors and other
factor and forces in the environment.
They develop and distribute persuasive communications to stimulate purchasing.
They reach agreement on once and others terms so that transfer of ownership or
possession can be affected.
They place orders with manufactures. They acquire the funds to financial inventories at
different levels in the marketing channel.
They assume risks connected with carrying out channel work.
They provide for buyers payment of their bills through banks and other financial
institutions.
In communication channel they deliver and receive message from their buyers and in
service channel transaction is carried out with potential buyers. The channel of
distribution in Hajoori & Sons is of one-level channel. In one-level channel there is 1 only
one intermediary, the retailer. This is the best channel level to sell the products in the
rural markets.
92. Structure of Place
Distribution Channel
6.8.3.1 Distribution Network
Channel of distribution is the chain through which the product of the company passes from
factory to final consumers. For reaching target market various companies uses various kinds
of channel of distribution shows how faster, easier, cheaply and with minimum risk the
product reaches to the final consumer. The company should have flexible channel of
distribution so that in future it can be changed easily according to requirement. Company
uses three particular channels to reaches their target market.
1) Communication Channel
In communication channel they deliver and receive message from their target buyers. If any
party order or bulk order occurs then it receives through telephone and fax also. They also
receive their suggestion and follow if any important needed.
Manufacturer
Distribution
Retailer
Consumer
93. 2) Distribution Channel
Company uses distribution to display sell or deliver the physical products or service to buyer
or user. They include distributors, retailers and franchises. Thus, it records whole concept of
distribution channels in Hajoori & Sons.
Zero Level Channels
This is also called direct marketing channel. It consists of a manufacturer selling directly to
the final consumer. Here company selling their products door to door. Here no intermediaries
between the manufacturer and consumer. Bulk orders are following under 0-level channel.
One Level Channel
A 1-level channel contains one intermediary such as retailer. Here company gives their
product to retailers and through retailers it goes to final consumers.
Two Level Channel (Export Channel)
2-level channels contain 2 intermediaries. In this type of channel franchisee and retailer are
two intermediaries. Company keeps their franchises in different place and sells their product
to retailers, through retailers it goes final consumers.
94. The company follows three types of distribution channel as 0-level, 1-level and 2-level
channel. In the 0-level channel the company‘s salesman directly sells the product to the
consumer at their home. In the 1-level distribution channel the salesman sells the products to
the retailer who thereafter sells to the end consumer. Here the salesman daily goes to the
retailer and consumer at their shops and home according to the routes.
0’Level 1st
Level 2nd
Level
Manufacture Manufacture Manufacture
Retailer Franchisee
Consumer Consumer Retailer
Consumer
95. In 2-level distribution channel the company‘s product is exported to the franchisee holder in
Dubai, Sharjah, Abu-Dhabi and various other cities of UAE, Lila, UK, USA, New Zealand
and Africa who thereafter sell to the retailer and to the end consumer. For Hajoori & Sons,
this is best because everything is managed by the company itself. As selling is done directly,
the company have its own salary paid and trained salesman at every place.
3) Service Channel
Hajoori & Sons also uses services channels to carry out transaction with potential users. This
service channels include warehouses, transportation, companies, banks, insurance companies
that facilitate transactions. Company also accepts cheques, draft from the potential buyers.
6.8.4 Promotion
Promotion refers to sales promotion, advertising, Sales force. Public relation, direct
marketing, advertising is any paid form of non-personal presentation and promotion of ideas,
goods or services by an identified sponsor. All the soft drink Co. does advertising according
to their suitability. Hajoori & Sons does advertising in the form of Newspaper ads, ads in
magazine, Ads on TV channel, etc. The multinational Co. does satellite TV ads with
celebrity, Newspaper, magazine ads, Banners, Hoardings, etc. The local brands does give ads
in newspaper, magazine. Etc.
Hajoori & Sons has made Sosyo Circle on Udhna Magdalla road for the purpose of
promoting their products. Also the Co. offers some free sample when they launch a new
product in the market. Even the multinationals offers a variety of short term incentives to
encourage trail or purchase of a product.
Hajoori & Sons organized and sponsor some events like Blood donation camp, Sports Day
program. Even the multinational Co. sponsor the Awards program, reality Shows on TV, etc.
For the purpose of direct marketing all the companies have their web-sites, E-mail id, and
telephone no. to contact or communicate directly with or solicit response or dialogue from
specific customers and prospects.
97. Promotional & Advertising Policy
Hajoori & sons faces lot of competition. Each day the customer‘s requirement, the taste of the
customer is changes. Although the company is very much old in the soft drink industry, it has
a promotion and advertisement to sells its product.
The company is using many policies to promote their product. They promote by advertising
in daily local newspaper such as Gujarat Mitra, local cable channels like city link, hind
channels, Samay channels and Eye witness. Now a day‘s company is giving their products
advertising on the radio.
To promote the product the in any competitive market, any company has to establish good
relationship with the market and keep in touch with their respective industry such as soft
drink manufacturer has to be in touch with their industry. So the most effective way to
promote their soft drinks is by participating in exhibition or any fairs. They also promote their
product in local or national fairs like fairs in Surat, fairs in Bombay. Sosyo circle at the
Udhana Magdalla road is also one of its promotional activities. They also promote their soft
drink by supplying their soft drink in various international conventions held in Surat like
Giant club meeting.
Necessary information about different product is also on the company‘s website –
www.sosyo-thesoftdrink.com. They can interact and get information by sending e-mail also.
The company also gives credit period to the customers after sales. They provide 5 days credit
period to their customers and 15 days credits period to their suppliers. The company has the
objectives of efficient performance and excellent quality which holds the good will of
company in promoting it. Company has led customer satisfaction as its foremost priority. It
also gives guidance to its customers if they are new to it. Thus a strong promoting policy is
backing the company.
98. For export advertising and promoting company use special type of packing to attract
customers and expense some money to make attractive labeling. Sometimes company gives
banners to their customers for advertising. In the interior region outside all the customers
Shop Company has done wall painting promoting various brand of the company.
Hajoori & Sons actively participate in a number of occasions ranging from Charity Shows,
Educational Activities and various other social activities.
As a part of company‘s brand promotion program and good corporate citizenship, company
regularly organize various contests and events such as Sosyo cricket tournaments in which
various teams from entire south Gujarat participate, Power-building competitions, Painting
competitions at school level, and various others.
Hajoori Company participated in Udyog 2002
99. South Gujarat Beauty Contest
Sosyo has been active in sponsoring Navratri Dances
“The heartbeat of Gujarat”
100. 6.9 Social Involvement
We work hard with a philanthropic approach to be a good corporate citizen. Our commitment
to our people‘s health, safety and careers is reflected in a wider responsibility to the
communities, in which we all live and work. It‘s about living with our corporate values not
just inside the workplace but outside it too. We actively participate in a number of occasions
ranging from charity shows, educational activities and various other social activities.
6.10 Respecting Our Environment
We have been proactive in safeguarding the environment as a mark to respect our
communities. We give an attention to pollution control activities to produce minimum waste,
recycle waste and disposal of waste at proper location.
6.11 Respecting Our Communities
As a part of our brand promotion program and good corporate citizenship, we regularly
organize various contests and events such as Sosyo cricket tournaments in which various
teams from entire South Gujarat participate, Power-building competitions, Painting
competitions at school level and various others.
Sales Promotion
Display scheme: Put ‗n‘ bottles of Sosyo in your store for 45 days get ‗n‘ bottles of
Hajoori Soda.
Coupon Scheme: Get 1 coupon on purchase of each box of pet bottles. In that coupon
you to scratch and can win 5 Rs to 10 Rs and more.
Bulk Card Scheme: It can be easily understood by the following card.
101. Conclusion
Strengths
They had variety of product so it is easy to capture the attention of the customer by
one or another product.
They had a very strong distribution network.
They are successfully lunching there product in foreign countries like Dubai, UK,
UAE.
Good relation with customer.
Efficient staff.
Weaknesses
Weak advertising in large scale
Uneducated labor force
Old process machinery though they are efficient but new technology may reduce their
cost
Too much attraction with the labor force allow some times increase per unit cost and
reduce efficiency
Opportunities
To grow as international brand
To cover entire rural area of Gujarat
To develop franchise outside of Gujarat
Threats
Product demand in children
Product demand in urban area
Control over the franchise outside of Gujarat
102. Suggestions
To increase the sales volume in urban areas.
To employ more workers to make the production process quickly
To give more importance on promotional activities
To provide more schemes to increase the sales
Price should be reasonable and make competitive price from other competitive
product
Do fast delivery and regular supply to customer
103. Bibliograph
Reference books:
1) K Ashwathappa and K Shridhara Bhat, Production & Operation Management
2) S A Chunnawala and D R Patel, Production & Operation Management
3) N G Nair, Production & Management
4) S A Sherlekar, Marketing Management
5) Kotler, Koshy, Keller and Jha, Marketing Management
6) C B Gupta, Human Resource Management
7) K Ashwathappa, Human Resource Management
8) C B Mamoria, S V Gankar, Human Resource Management
9) Khan & Jain, Financial Management
10) I M Pandey, Financial Management
Web Sites:
1) www.sosyo-thesoftdrink.com
2) www.wikipedia.com
3) www.google.co.in
104. Annexure
(Balance Sheet of 2010 & 2011 of Hajoori & Sons)
Particular Year
2010 2011
Sources of fund
Capital 128250 272250
Reserved and surplus 3308214 4006677
Loan funds - -
Unsecured Loan 529800 29400
Tax 411901 476901
Deposits:
From customers 637845 826313
From FLV Ltd. 38692 38692
Total 5054702 5650233
Application of fund
Fixed
Gross block 4831499 5672928
Less: Dep. 1224392 1516907
Less: lease terminal Adj. A/c 118859 118859
Net block 3488248 4037162
Capital work in progress 349681 6737709
Capital inventory 122859 376082
Asset Held For disposal 9130 9130
Investment 1500927 786226
Current assets loans & Advances
Inventories 56369 86275
Sundry debtors 401814 771123
Cash & Bank 73494 70262
Loans & Advances 148680 231395
Total current assets 680357 1159055
Less: C.L & Provision
Current Liability 926110 1146138
Provision 226946 277621
Total Current Liability 1153056 1423759
Net Current assets -472699 -264704
Misc. Expense 56556 32628
Total 5054702 5650233
105. (Income Statement of 2010 & 2011 of Hajoori & Sons)
Particular Years
2010 2011
Sales (gross) 6205188 8359098
Less: Returns 45459 99820
Net sales 6159729 8259278
Less: COGS
Materials consume 4138385 5969105
Personnel Expenses 209523 279958
Revenue Expenses 24407 23928
Total 4372315 6272991
Gross Profit 1787414 1986287
Less: Operating Expenses
Operating & other expenses 418856 564003
Depreciation 218000 296085
Net Operating Profit 1150558 1126199
Add: Non trading income 183886 187944
Less: Non trading expenses
Financial charges 29126 30191
Profit before taxes 1035318 1238952
Less: tax expenses 401387 395000
Profit after tax 1960759 2570322