Havmor Ice Creams Bba Mba Project Report

8/4/2019 Havmor Ice Creams Bba Mba Project Report

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INDEX

Srno

.

Particular Pageno.

1 Introduction 32 Company profile 43 History & Development

of the unit6

4 Location of the unit 8

5 Time keeping system 96 Innovation 10

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INTRODUCTIONHavmor literally meaning H-A-V-E-M-O-R-E, one

of the best name for food business was coined by

Late Shri Satish Chandra Chona in 1944.

HAVMOR is a privately owned companymanufacturing varieties of ICE CREAMS, they alsorun RESTAURANTS and FAST FOOD PALOURS, andthey also deal with CATERING.

Havmor Group of Co. has its humble beginning

since 1944, when its founders startedmanufacturing ice cream with a hand-crankedmachine.

The Havmor philosophy of providing itscustomers with the best quality products andservices at affordable prices has resulted in thebrand being a household name in Gujarat.

Havmor has 50% of the Gujarat ice creammarket. But thats no surprise considering that thegroup has the largest range of ice creams in theGujarat in a variety of flavors, packs and forms. Thegroup has a product matrix comprising of cones,cups, candies, family and party bricks and bulkpacks.

Havmor introduced the concept of flavor of themonth under which the company develops andmarkets one new flavor every month for itscustomers delight.

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COMPANY PROFILE

Havmor Groupof Co.

Factory Address : Modern IndustrialEstate,

B/h. Naroda Station,

Naroda Road,Ahmedabad-380 025

Fax : 91 079 2220 3890E-mail :[email protected]

Office Address : 2nd Floor, Kashmira

Chambers,B/h. Popular House,Navrangpura,Ahmedabad-380 009

Fax : 91 79-2657 5100E-mail :[email protected]

Website :www.havmor.com

Main Product : ICE-CREAMS

Land area

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mailto:[email protected]:[email protected]://www.havmor.com/mailto:[email protected]:[email protected]://www.havmor.com/


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of factory : 5000 sq. ft.

No. of employees : 420

Managing directorof the Company : Mr. Pradeep Chona

President : Mr. Anandkhanonkar

Assistant G.manager : Mr. Dhiren Shah

Purchase manager : Mr. Ajay Mistry

Finance &Account manager : Mr. Vatsal Parekh

Quality Control : Mr. Sanjay & Miss.

Urvi

Stores Management : Mr. S.k. Shetty

H.R.Assistance : Mr. Tejas & Mr.Pramo

Vice President (HR) : Mr. Rajesh Shah

Marketing Dept : Mr. Kamal Desai

Auditors : Mr. Mukesh

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Bankers : CorporationBank

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HISTORY &DEVELOPMENT

OF THE UNITSmall Beginning, Big Vision, Great Ambitions

Havmor Ice Cream began its branded life in 1944 inKarachi, in undivided India. By 1947, it was apopular local brand there.

But in 1947, in the wake of the Partition, itsfounder Satish Chona had to join the exodus intoIndia, with virtually no moveable assets. Searchingfor a new turf, he tried out Dehra Dun and Indore,and finally, settled down in Ahmedabad.

No, it was not a case of Brand Relocation, oranything else as fanciful. He had to start theventure from scratch again. In fact, he had to beginfrom a hand-cart at the Ahmedabad Railway Station,churning out the Ice Cream manually.

He called this fledgling brand Havmor - aneologism for Have More - which meant thecustomer, got more value for money, and moretaste to relish, from his Ice Creams.

Perhaps he didnt know it then, but he had laidthe foundation for one of Western Indias mostenduring market legends and good quality, likegood character, wins over the situation sooner orlater.

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Today, Havmor Ice Cream is a delicious facet ofWestern Indias daily life, and part of its market lore.It reaches hundreds of thousands of consumers

through 8 main outlets and 3800 plus dealers.

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LOCATION OF THEUNIT

The location of plant or industry means toscientific choice of a region or specific sight in aregion where the business unit is to situate. Themain object of an industry concern is to maximizeprofit through minimization of production anddistribution cost. The objectives are realized only ifthe firm is located at a place which offers all

economies of production and distribution.

* Factor responsible for plant locationare:

1.Money, Material2.Man power, Market3.Motive power, Management

4.Machinery, Means of Communication5.Momentum to an early start

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TIME KEEPINGSYSTEM

Time keeping system for industrialstaff

Shift Timings1st shift ~ 8 AM TO 4 PM2nd shift ~ 4 PM TO 12 Mid Night3rd shift ~ 12 Mid Night to 7 AM

Working Hours for office staff: 9.30 TO6.30

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INNOVATIONSQuality is undoubtedly very important to

establish and retain ones status in a competitive

environment. But equally important is innovation constantly coming up with something new tomaintain an edge over the competition. Hence,creativity is at the forefront of our activities. Most ofour innovations have been based on the consumerfeedback we have received from our ardent fans. Toplease them, to date we have launched over 200flavors in 600 pack-types and forms. People eagerly

await our flavor of the quarter, which has been anon-going event over the years.

Here is a representative sample of a fewof our innovations:

We are the first ones to introduce Dairy Fresh an all natural ice cream which contains no

additives, no preservatives, no synthetic Colorsor flavour. Nothing but the pure, naturalgoodness of milk, fruit and nuts.

We launched many dry fruits based ice creams,an assortment of traditional Indian ice creamform, which otherwise had to be bought justprior to consumption, and that too from

vendors whose quality often left a lot to bedesired.

We even introduced the Sorbet a fruit juicebased frozen dessert.

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To match our unique products, we have oftengone in for unconventional and creativepackaging. Like the time when we filled Mango.Orange, Sitafal, Sweet Lime. Ice creams in the

intact skins of their fruits. It was a big hit atsocial gatherings and special occasions.

All our innovations are based on a single guidingprinciple i.e. Give the consumer what he likes andwants, and not what we want him to like?

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INDEX

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Sr

no.

Particular Pag

eno.

1 Introduction 14

2 Organizational Structure 153 Main products of the

company16

4 Pictures of ICE-CREAMS 175 Raw material used 226 Production process 237 The process for the basic

ice-cream mix

25

8 The process for the ice-cream production

27

9 Stores management 2910 Plant layout 3011 Health & ice-cream 32

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INTRODUCTION

Production is the process of transferringcomponents into finished products for sales.

The term production is wide in scope. Itincludes manufacturing process also by which rawmaterials are transferred into finished goods forfinal consumption. Land, Capital and Labororganization and entrepreneurship are the factors ofproduction, where as making include marketresearch, personal selling, sales promotion,

advertisement, publicity and all other activitiesrelating to distribution.

Production refers to a process of fabrication of aproduct or a physical object through there are men,material, capital and entrepreneurship for thesatisfaction of human wants.

Production department is the heart of HavmorUnit, as the main function of Havmor is to producethe products and supply to the consumers accordingto their needs and taste. Thus, in Havmorproduction department is the most importantdepartment.

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ORGANISATIONALSTRUCTURE

Vice President Operation

Assistant GeneralManager

Production Manager

Supervisors

Labors

Production is the lifeline of any business unit;

hence production department plays an importantrole of vital importance in any industrial unit as inHavmor group.

Vice President is the head of the department,followed by Assistant General Manager, ProductionManager, Supervisors and at last Labors.

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MAIN PRODUCTS OF THECOMPANY

Ice creams found in different styles

like:

King Cones

Big Cups

Small Cups

Party Pack

Family Pack

Juices

Candy

Dolly

Kulfi Corner

Roll cut

Novelties

Cassata

Premium Pack

Kids Special

Havmor Special, etc.

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RAW MATERIALUSED

There are various types of raw materials thatare used in Havmor during Ice Cream makingprocess. Major Raw Materials used for making Ice

Cream are:

Milk

Cream

Skim milk powder

Dry fruits

Fresh fruits

Flavours

Sugar

Stalulizer

Emulsifiers agents

Chocolates

All the materials used in process are managedby Storage Department. And their quality is checked

by Research and Development Department.

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PRODUCTION PROCESS

Pasteurize Milk (8-10C)Dump Tank

Milk Pump

Batch Pasteurize (75C for 15 Mins)

Milk Storage Tank

Milk Pump

Batch Pasteurizer

Milk Pump

AtomogeniserTwo Stage

I. 2500 PsiII. 500 Psi

Mix Chiller (24C)

Aging VAT

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Aging VAT

Batch Freezer Flavour TankCandy Tank

I/C Vessel Addition of Colour &Flavour Candy Hardening Tunnel

Continous Freezer

(-20C)

Cone Filling Machine Cup FillingMachine Chocolate Coating Tank

(-4.5C) (-4.5C) (33C)Packing Table PackingTablePacking Table

Hardening Tunnel Hardening

TunnelTo Cold Storage

(-35C)

To Cold Storage (-2.5C) To Cold

Storage (-25C)

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The Process for theBasic Ice Cream Mix

Pasteurization Tank:-

Here the raw materials like milk, cream,powder, etc are mixed. Milk is pasteurized here.

Mixing of Pasteurizers is done at 8-10C, Butter is

melted at 40C, All ingredients at 55C,

Sweetening agent is added at 65C, andpasteurization is done at 75C. The mix is kept at

75C for 15 mins and then filtration of mix is done.

Homogenator:-

After being pasteurized at 75C, the mix istransferred to this tank. Here, this mix is keptunder the pressure of 50 cem square. Thisincreases the viscosity of the mix. Here the breakdown of the fact glucose is done up to micronsize. The Homogenator tank is the heart of theprocess.

Chiller:-

In the chiller, the chilling of the mix is done

from 75C to 24c.

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Storage Tank:-

After being thoroughly mixed, the mix is stored

in this tank. The mix is stored here is called thebasic mix and is used for all ice creams. Thebasic mix is taken to each section for differenttypes of Ice Creams, whether it is cup, candies,cones, etc.

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The Process for theIce Cream

ProductionThe tank through which the ice cream is carried

out should be cleaned every time before gettingany new flavour. The creaming process is done byService and Engineering Department. The processof cleaning any equipment is different from each

other.

* The general process of cleaning is asfollows:

Flushing with tap water.

Cleaning with hot water at 10C for 10 to 15mins.

Alkali cleaner for 20 mins at 10C. Flushing with hot water.

Senttice the whole equipment with hardaphiresolution of 200 ppm for 20 mins.

Flavouring Tank:-

Required quality of basic mix is transferred inFlavouring tank additions of essence andFlavouring Color is done as per the recipes ofparticular ice cream.

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Continuous Freezer:-

After starting the continuous freezer, the icecream will come out within 25 seconds at the

temperature of 8C to -5C. If the recipes includesadditions of nuts it is done through fruit feederwhich is outside the continuous freezer andbefore the final place of coming out of the icecream and in case of Sundays different flavor isadded through nozzles through which more thantwo flavors can be added. After coming out fromcontinuous, the ice cream is picked into different

boxes, cups, etc. This process is done manually.

Hardening Tunnel:-

These packets are kept in hardening tunnel toachieve ITC.

Cold Storage:-

After achieving ITC in hardening tunnel, icecream is transferred in to cold storage and takenas per the market demand.

Yummy Ice Cream is now ready to dispatch.

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STORESMANAGEMENT

Stores management is necessary for any scaleof unit because whenever the need arise it could beprovided by the store department.

There is a separation for storage in Havmor. The departments like production, research anddevelopment department are required to inform tothe storage department whenever the need arisesand on this basis purchase requisition is made andgiven to purchase department.

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PLANT LAYOUT

Layout problems are fundamental to every type

of organization and are experienced in all kind ofmarketing. Housewife must arrange her kitchen;retailer must arrange their facilities, not only thedepartments within the factory but also the plant,stores and services so as to achieve flow ofproducts.

Once a decision about location of a plant has

been taken, next important problem before themanagement is to plan suitable layout for the plant.Efficiency and performance of good machines andsturdy buildings depend to a great extent on thelayout of the plant.

According to James Handy, Layout identicallyinvolves the allocation of space and arrangement of

equipments in such a manner that overall operatingcost is minimized.

There are mainly 3 types of layout

1.Process layout or layout by function2.Product layout or line production3.Fixed position layout.

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Process layout or layout byfunction:

This is typical job-shop type of production,where the equipment performing similar operationis grouped together. In this layout more emphasis isgiven to specialization or functional homogeneity onthe various components of the system. Alloperations of similar nature & grouped together inthe same department or part of the factory. E.g.;

grinding machine is located in any are, etc.

Product layout or line production:

The equipment here is laid out according to thesequence in which its used for making the productfor this type of layout if two products are tobe made

is called for two separate layouts.

Fixed position layout:

In this layout, the material remains in a fixedposition, but the machinery tools, workmen, etc. are

brought to the machines.

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HEALTH & ICE-CREAM

ICE-CREAMS:

The most Indulgent face of Nutrition.

A Cup of good Ice-cream probably features themost varied blends of nutritious elements in life.

Carbohydrates (Rice & Wheat), Fats (Oil & Ghee),Vitamins & Minerals (Vegetables & Milk), Proteins(Pulses) all are blended into a lip-smacking cup.

What is more, Ice-cream is the most deliciousform in which children can consume these nutrients.In fact, they would ask for it, & relish it withoutparental prompting.

Those who want to build better health canregularly consume high quality Ice-creams as part oftheir daily diet. And those who are on a weight-lossdiet, can use them as delicious & nutritious hunger-quencher, they will give them just the right amountof nutrients, but keep then from accumulating toomuch of anything by taking the edge off the need toeat a lot.

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NUTRIENT CONTENT OF 100GMSVANILLA ICE-CREAM:

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FAT 13 GMS.

M. SNF (GMS) 11 GMS.

SUGAR (GMS) 15 GMS.

CALORIES 196.7

PROTEIN (GMS) 4.0

CARBOHYDRATES (GMS) 20.7

TOTAL MINERALS (GMS) 0.9

CALCIUM (MG) 122.0

PHOPHROUS (MG) 105.0

POTASSIUM (MG) 90.0

IRON (MG) 0.1

VITAMIN A 492.0

VITAMIN B1 (MG) 0.04

VITAMIN B2 (MG) 0.23

NIACIN (MG) 0.1

VITAMIN C (MG) 1.0

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INDEXSr

no.

Particular Pag

eno.1 Introduction 36

2 Organizationalstructure

37

3 Recruitment, selection

& Induction

38

4 Training &Development

41

5 Promotion, Demotion &Transfer policy

42

6 Grievances handling

procedure

44

7 Performance appraisal 458 Personnel records 469 Wages & Salary

Administration47

10 No. of employees 4811 Provident fund scheme 49

12 Employees benefits &salary

50

13 Trade union 51

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INTRODUCTIONAs the term applies, personnel management is

the management of human resources in an

organization and is concerned with the creation ofharmonious working relationships among itsparticipants and bringing about this utmostindividual development, such management isconcerned with leadership in both groups andindividual relationship and personnelmanagement. It effectively describes the processof planning and directing the applicants,

development and utilizations of human resources inemployment. In fact, personnel managementundertakes all those activities, which are concernedwith human elements in an organization. Whateverfunctions are listed therein, the main objectives ofthese functions are to bring together expertise in ascientific way and to create that motive, a group toachieve its goals economically, effectively and

speedily.

According to Havmor, HRD plays a major role inconducting specialized training programs,encouraging innovative ideas, inoculatingwillingness to accept change and rewarding out thiswith an incentive package. They believe that theirplants are most valuable assets who have made

Havmor what it is today, and it is they who will takethem for beyond the horizon, the days to come.

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Managing Director

General Manager

Assistant Manager

Executives

Officer

Assistant

It caused of the assignment of specific functionsto designated persons department with authority tohave them carried out and their accountability tomanagement for the result obtained. It seeks toachieve maximum effort by decentralized, where bythe power of decision is brought down as near aspossible to the individual concerned.

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RECRUITMENT,SELECTION &

INDUCTION The recruitment & selection process is

intimately connected with overall manpowersystem.

It is the primary duty of the personnel department

to procure and maintain the adequate qualifiedworking force of various personnel necessary forrunning the organization. It is very importantfunction even for the establishment anddevelopment of business.

RECRUITMENT:

Recruitment refers to attempt of gettinginterested applicants and providing a pool ofprospective employees so that we can select rightperson for right job. In Havmor the recruitmentsources can be classified into two broad categories.

For recruitment of skilled workers,

advertisement is given in newspapers and unskilledworkers are recruited from local areas.

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SELECTION:

Selection is the process in which candidates for

employment are divided into two classes thosewho are to be offered employment and those whoare not.

The selection process of Havmor Co. isdone as under

* Preliminary Interview.

* Application.* Interview.* Final Selection.

Following are the broad headings under which thequalities desirable for a suitable candidate may begrouped.

* Educational and technical qualifications* Intelligence* Responsibility involved and initiativerequired* Ability to command, to obey* Health and physique* Ability to work in the conditions inwhich the job is performed.

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INDUCTION:

Induction refers to the job and organization.The purpose is to make the employees feel at homeand develop a sense of pride in the organization andcommitment to the job.

Induction is a technique by which a newemployee is rehabilitated into the changedsurroundings and introduced the practicing policiesand purpose of organization.

Induction of employee is done by everydepartment for every week after selecting of 2 to 3days.

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TRAINING &DEVELOPMENT

TRAINING:

Training is the organized procedure by whichpeople learn knowledge or skill for a definitepurpose.

In this modern era, training is very important. In

Havmor Ice-creams, there is also modern type ofmachines which follows modern technology. Manyworkers dont know to use them. So, they teachthem how to use machineries.

DEVELOPMENT:

Development is an organized and plannedprocess and program of training and growth bywhich individual manager or executive at each levelof management hierarchy gains and appliesknowledge, skills, insight and attitudes to manageworkers and the organizations effectively.

In Havmor Group of Co. HR coordinates thetraining. Sometimes staff is send outside thecompany for training purpose or experts are calledup to give training to the employees. Company alsogives training to their workers according to the job.Generally, training for 7 days is given to workers.

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PROMOTIONDEMOTION

&TRANSFER POLICY

PROMOTION:

Promotion is the advancement of an employeeto better job better in terms of responsibility, moreprestige or status, greater skill, higher grade &salary and increased privileges, etc.

Havmor Co. also gives promotion on the basis ofall over performance basis. Company also considersmerit basis and seniority basis. Top level

management gives promotion.

DEMOTION:

Demotion has been define as the assignment ofan individual to a job of lower rank and pay usually

involving lower level of difficulty and responsibility.In other words, demotion refers to the loweringdown of the status, salary & responsibility of anemployee.

Havmor Co. gives demotion when any employeeis not able to do his work by any reason.

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TRANSFER:

Transfer refers to changes in jobs that involvelittle or no change in status, responsibility and pay.

Havmor Co. does transfer to their employee.Employees are transferred from one shift to anothershift, as per the requirement.

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GRIEVANCESHANDLING

PROCEDURE

Grievance is difficult to define, personnelexperts however, have attempted to distinguishdissatisfaction, complaint and grievances. Generallyspeaking, dissatisfaction to any staff or filling of

discontent, whether it is unexpressed or explicitlyexpressed. A dissatisfaction which is orally madeknown as complaint becomes a grievance when thisdissatisfaction, which is usually related to work isbrought to the notice of management.

A complain by an employee and claiming unfairtreatment.

In all the companies grievances always existirrespective of size and unit. In some employeehave complaints against employees. The grievancesmay be real or imaginary valid or invalid.

In Havmor, there is specific grievance handlingprocedure. Whenever, there is any grievance, theemployees meet first to the supervisor and if notsolved then employees meet to the concerningdepartment head and management tries to solvethe grievance by considering the acceptabledemand of the employees and the workers alsokeep themselves ready to achieve the targetsdisclaimed by the management.

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PERFORMANCEAPPRAISAL

In the organization context performance appraisalis a systematic evaluation of performance bysupervisors or other familiar with their performance.It is also described as merit rating in which oneindividual is ranked or market in comparison toothers.

Performance Appraisal is a systematic evaluationof the individuals with regard to his/herperformances on the job and his potential fordevelopment.

In Havmor, the performance appraisal is done bythe superior or superior will fill the form, it is doneonce in a year and accordingly increase in salary isgiven. Motivation to workers done once in 2 months.

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PERSONNELRECORDS

A Personnel record is piece of writing in a chartor which provides ready information and whichpreserve evidence for future reference or use.

Havmor Co.s style of keeping personnel recordis very scientific and systematic. The companykeeps one file for each employee. In this file, you

can get each & every information about employee. The information like wages, salary, training &development, recruitment & selection, pension,provident fund, discipline, past experience, birthdate, blood group, qualifications, behavior ofemployee in the company, etc. are noted in this file.

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WAGES & SALARYADMINISTRATION

Wage and salary administration is necessarilythe application of a systematic approach to theproblem of ensuring that the employees are paid ina logical, equitable and fair manner.

Its basic purpose is to maintain and establishwage and salary structure. Its secondary objective is

to establish equitable labor cost structure. It isconcerned with financial aspects of needs,motivation and rewards.

Havmor Co. gives wage and salary to theworkers according to their work and ability. In thiscompany, wages and salary are given monthly tothe workers. Sometimes, company gives wages onthe basis of contract to the workers.

Salary to the clerical, administrative andprofessional employees is paid on the 1st of everymonth. In Havmor, till now there is no child labor.

The average eages provided to labor is Rs. 2400 permonth.

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TOTAL NUMBER OFEMPLOYEES

The company has total staff strength of 420. Which includes 200 unskilled workers and 220

skilled. The company recognizes the important role that

its employees used to play the growth of variousbusiness activities.

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PROVIDENT FUNDSCHEME

The Provident Fund Act was passed in 1952. Aspecial reserve fund was made for making thepayment to out going members. The ProvidentFund Act 1952 was amended in 1971 to provide forthe benefit of family pension to the members ofdeceased in case of their death, while in service.

In Havmor Group, company provides providentfund to its employees. The scheme covers each andevery employee of the company. PF @ 12% is givento employees in that 8.33% is pension and 3.67% isPF. It affect instantly to financial condition to eachand every employee. It makes bright future foremployees.

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EMPLOYEESBENEFITS &

SERVICESThe services or benefits, which are given to the

employees more than the salary comes underemployees services scheme.

In Havmor following benefits are provided to theemployees:

Uniform. Safety Facility.

Medical Facility. Social Welfare. Canteen Facility.

Employees are also provided previous leave,

casual leave, and sick leave. Employees in Havmorare also provided the benefits like PF, ESI Scheme,etc.

Safety facility is provided to workers as in fooditems utmost safety is required and medical checkup to the workers is also done as and whenrequired.

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TRADE UNION The scenario of exploitation of employees by

employers led to the birth of unions and introduced

the ear of government regulation and control overemployment relationship. Now, unions are a part ofmodern industrial societies. There are variousexplanations about the place and role of unions.

These points to a commonalty through union seekto pursue and further the interests of employees asa collectively.

A track union is any combination of persons,

whether temporary or permanent, primary for thepurpose of regulating the relations between workersand workers, and for imposing restrictive conditionson the conduct of any trade or business, andincludes the formation of two or more trade unions. Section 2 (B) of Trade Union Act, 1920.

In Havmor, the relation of industry with trade

union is good. It generally deals in collectivebargaining for doing negotiations.

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INDEXSr

no.

Particular Page

no.

1 Introduction 542 Organizational

structure55

3 Responsibility function

& Authority ofIndividuals at differentHierarchy levels

56

4 Assigning territories 585 Product planning 596 Product mix 607 Marketing research 61

8 Market segmentation 629 Distribution channel 6410 Physical distribution 6611 Packaging &

Transportation69

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INTRODUCTION

Marketing is so basic that it cannot be

considered a separate function. Marketing has beendefined in various ways. The definition that servesare purpose by which individuals and groups obtainwhat they need and want through creating, offeringand exchanging products or value with others.

* Marketing is a total system of business, anon going process of:

Discovering and translating consumer needs anddesires in to products and services.

Creating demand for these products and services.

Serving the consumers demand with the help ofmarketing channels, and then in turn

Expanding the market even in the face of keencompetition.

Marketing management is the process ofplanning and executing the conception, pricing,promotion and distribution of ideas, goods andservices to create exchanges that satisfy individualand organizational goals.

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General Manager(Sales & Marketing)

Senior Sales Manager

Area Sales Manager

Sales Executive

Sales Coordinator

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Responsibility functions& Authority of

Individuals atDifferent HierarchyLevels

General Managers Responsibility& Authority

* Sales Administration.* Advertising and Media.* Product Management.* Recruitment and Selection at higher Authority

Level.* Designing Sales Promotional Programs.

Responsibilities & Authority ofSenior Sales Manager

* Generate Sales.* Assigning targets.* Recruitment.* Maintaining relationship with Distributors and C&F

Agents.* Assisting in designing of Promotional Programs.

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R esponsibilities & Authority ofSales Executives & SalesCoordinators

* Appointing Distributors / Dealers.* Provide Machines.* Handling Dealer / Distributor Complaints.* Give the promotional tools to the Dealers &

Distributors.* Dealer / Distributor Communication.

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ASSIGNING

TERRITORIES

Generally, past figures are taken as base for salesforecast. Some percentage will be taken on last yearSales & Budgeting sales figure will be decided.Moreover, it depends on certain other parametersalso like Advertisement in that particular territory.Market Development Opportunity, Market Size,Competitors Activities, and Support from HO. So itsa combination of all the parameters. The SalesBudget also depends on the companys strategy.After deciding the Sales forecast, they derive salesbudget. They allocate budget for promotionalschemes, for incentives to the sales people,advertising, etc.

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PRODUCT PLANNING

Planning is to decide in present, what to do in

future? Havmor Co. also develops new products andsteps of product development are as under

Research for a new product sometimes is based

on seasons & market demand.

Planning of product before 3-4 months in

advance.Quality control department check the product

quality.

Product management department approves a new

product.

Product planning for promotions.

Final label of product.

Commercialization of new product.

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Product Mix ofHAVMOR

IceCream

FrozenDesert

FoodItem

Cups

Small

Cup

Big Cup

Family

Packs

Cones

SundaesPartyPacks

Novelties Bulk Packs

PRODUCT MIX

A product mix is a set of all products and items

that a particular seller offers for a sale. A companysproduct mix has a certain length, width and depth.

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MARKETINGRESEARCH

Marketing research is the systematic collection,design, analysis and reporting of data and findingrelevant to a scientific marketing situation facingthe competition. Process and marketing researchfollowed in Havmor.

Defining the problems and research objectives.

Developing the research plan. Collecting the information. Analyzing the information. Presenting the findings.

Havmor Company does marketing researchthrough his sales staff. Sometimes HavmorCompany appoints marketing intelligent staff for

research in different areas.

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MARKETSEGMENTATION

Market Segmentation is a full larger grouphaving similar wants. Segmentation is consumeroriented marketing strategy. Marketsegmentation gives the formal segmentation tothe fact that wants and desires of consumersdiverse and we can orient specific category or thesegment of the market, so that supply will have

the best correlation with demand. Varied andcomplex buyer behavior is the root cause ofmarket segmentation.

Market consists of buyers and buyers differ inone or more respects. They may differ in theirwants, purchasing power, geographical locations,buying practices. Any of these variables can be

used to segment a market.

The ice cream market is segmented infollowing three ways:

Basis of flavors:

Viz. Vanilla, Strawberry, Chocolate, Mango,Butter Scotch, Kesar Pista, etc. Vanilla, Strawberryand Chocolate together account for about 70% ofthe market followed by Butter Scotch and otherfruit flavors.

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On the basis of stock keepingunits / packaging:

1. Cones.2.Cups.3. Sticks or Candies.4. Take away.

On the basis of consumerSegment:

On the basis, the market is divided into foursegments,

1. Impulse segment.2.Retail.3. Institutional / Catering.4. Parlors.

Retail and impulse together account for 70% of thismarket.

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DISTRIBUTIONCHANNEL

In the field of marketing, channels of distributionindicates the routes of pathway through whichgoods and services flow or move from producers toconsumers. The route of channels of distributionincludes the manufacturer and the consumer as wellas all intermediaries. These components are linkedin the channel system by one or more of themarketing flows, such as transfer of title ofownership, physical distribution of merchandise,transfer of title of ownership, physical distribution ofmerchandise, transmission of marketing informationand the flow of money in the form of payment ofprices and other dues.

The channel of distribution of Havmor is

as follows:

Manufacture

C & F Agents

Distributors

Dealers & Retailers

Customers

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The above channel strategy defines the channelmembers. The finished goods first go to C&F Agentis not available then the finished goods directly goto Distributors.

HO (i.e. Ahmedabad Office) constantly watchesthe moments the orders given in DispatchDepartment by various C&F Agents and Distributors.

Havmor has 32 distributors and 4000 retailoutlets. The network is kept alive by large flat ofrefrigerated vehicles; refrigerated equipments and

retail freezers are sources from world leaders intechnology, so as to deliver quality products to theconsumers, which is a commitment at Havmor.

Marketing Department also coordinate withDispatch Department to get the order from C&FAgents and Distributors, and try to see the momentsof dispatch that orders as early as possible by

clubbing various distributors in one route. And atlast dealers get the goods from the distributors.

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PHYSICALDISTRIBUTION

The marketing process is not complete simply bycreating superb product and by creating theconsumer through aggressive salesmanship.Delivering the product to the consumer at the righttime and right place is equally important function inmarketing. In process of marketing, this vitalfunction is called physical distribution.

Physical distribution means the process ofdelivering the product to the user or consumerpromptly, safely and in time.

The major components of physicaldistribution of Havmor:

Warehousing

Inventory

Order processing

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WAREHOUSING:

As ice cream is a perishable product and it must be

kept in cool place to maintain its quality for few days,Havmor has cold storages at different ends. Theseends are factories, C&F agents, Distributors andDealers. The temperature kept in these storage

houses is as low as 25C.

INVENTORY:

For the raw material, Havmor keeps theinventory. The inventory of the packaging materialis kept as low as possible and according to thedemand forecasted and growth rate of the market.Ice cream is product of impulse category thatrequires proper storage, to keep it in a propercondition. The production and consumption systemalso such that, the production is done through the

whole year and main demand is in summer season.So every company has to store ice cream properly.Company has enough storage facility at their allplants, and all C&F agents have their own coldstorage facility, so they keep the stock as per theirrequirement i.e. at the time of promotional schemeperiod or in summer they maintain high stock, theC&F agent carry the stock in bulk and they supplythe ice cream to distributors or dealers, who alsohave proper freezing facilities.

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ORDER PROCESSING:

Havmor has defined MOQ (Minimum OrderQuantity) for the distributors to make order to the

company. As far as order of the dealers areconcerned that is the headache of the distributors.Here, the job of the Havmors sales staff is to assistthe distributors is selling the ice cream. Havmorstates their physical distributors objective, gettingthe right goods to the right place. No physicaldistribution system can simultaneously maximizecustomer service and minimize distribution cost.

Maximum customer service implies largeinventories, transportation and few warehouses.

The designing distributors system is to study whatthe customer wants and what competitors areoffering customer, interested in several things suchas on time delivery. Havmors willingness is to meetcustomer needs, careful handling of merchandise totake back defective goods and re-supply themquickly and to carry inventory for customer.

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PACKAGING &TRANSPORTATION

Packaging:

Ice cream consumers in India are generallychildren and young people. To attract theseconsumers ice cream manufacturers try hard tomake their packaging attractive.

Packaging plays a large role in marketing of icecream products. Many different packing, sizes anddesigns can be chosen along with type of packagingmaterial.

Ice cream is marketed in three types of

packaging.

The most popular is a cup of 100-150 ml sold @Rs. 8-15 price range. Ice creams at this pricerange are generally brought for immediateconsumption. They are available everywhere frombig super market to local retailers.

Bar, sticks and Cones represent another ready-to-eat market and are priced @ Rs. 5 and is verypopular with kids and forms major portion of theice cream sales.

Party pack and Family pack are in much use nowa days. These are used for parties and inrestaurants. Though outside attractiveness is not

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very important but the size of the pack andhandling comfort is important.

Transportation:

Ice cream requires very low temperature in

terms of -25C, so the Van used for thetransportation is having the chillers. Company isacquiring Van on the contract basis.

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INDEX

SR

.NO

PARTICULAR PAGE

NO.

1 Introduction 732 Sales organization 743 Sales Budget 754 Pricing policy 765 Channel of distribution 776 Advertising 787 Sales promotion 79

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INTRODUCTION

The sales manager is the head of the salesdepartment and he is guided in his policy by themanaging director of the company. Thus, the salesmanager must be a man of initiative and ready topropose new ideas as opportunity comes. He mustbe active, energetic and persistent in order to copeup with the work involved which is sales promotion.Exploring new possibilities of obtaining customers,market and new goods. He must be energetic andput new life and interest in his sales staff. Salesexecutive should be a good judge of human nature,a good mixer and know how to handle men not onlyhis customers but also his competitors in themarket. He must be a good organizer and know thepsychology of the group to whom he serves.

It is true that a sale is the last activity of anorganization but it is not the less important function.

The sales executive in additional to beingcompetent the techniques and procedure of sellingthe product, is an executive directing the activitiesof others. He has to co-operate with the rest of thestaff for new products and new uses of thecommodity.

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SALESORGANISATION

The sales department should co-operate withdesign department so that the product designedshould meet the exact requirements of thecustomers and the important factors likeefficiency,sturdity,low cost of maintenance, safetyfor the operator ,ease of handling and good luck areto be achieved and the sales department has to co-

operate with the production department to see thatthe quality is maintain and the rate of production isaccording to the schedule with planning departmentto prepare the sales programmed on which theentire planning will be based ,with the accountingdepartment to bring the prices down and there byto increase the turn over and fix selling price. Withthe accounts dept. to give complete data and withthe personnel dept. to procedure the efficientsalesman.

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SALES BUDGET

Sales forecasting & DevisingSales Budget:

As Ice Cream is perishable good and itrequires proper freezing to maintain Properquality, which is very costly. So salesforecasting is very important to reduce the

cost of over production and maintenance.

Havmor considers following factors forforecasting the Sales:

Observing Market Trends.

Past figures related to consumption pattern.

Deciding the future strategy.

Using the above factors, experts in the salesfield use their expertise and give their opinion forthe next years sales. Thus, Havmor use Jury ofExpert Executive Opinion.

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PRICING POLICY

A price policy is the standing answer to the firm to

recurring problem of pricing. It provides guidelinesto the marketing manager to evolve appropriatepricing decisions. There are many methods ofdeciding pricing. It depends on the organization thatwhich method it wants to adopt.

Policy on pricing relative to costs:

Havmor follows Full Cost / Cost plus pricing. FullCost pricing, no sale is made at a price lower thanthat covering total costs, including the variablecosts and allocated fixed costs.

For Example,

X- Cost of ProductionX+Y- Cost of goods soldX + Y + 6% - Cost of goods sold + distributorsMarginX + Y + 6% + (12% to 20%) = MRP Dealermargin added to above (Consumer Price)

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CHANNEL OFDISTRIBUTION

Every producer seeks to link together the set ofmarketing intermediaries that best fulfill the firmsobjectives. This set of marketing is called thechannel of distribution.

A distribution system is key of external resources.Normally it takes years to build and it is not easily

arranged. It ranks in importance with key internalresources such as manufacturing, research,engineerings and field sales personnel andfacilities.

The channel of distribution of the company hasthe following way:

Manufacturer

Agents

Dealers

Retailers

Customers

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ADVERTISINGIt is defined as any paid form of non-personal

presentation and promotion of ideas, goods and

services by identified sponsor. It is impersonalsalesmanship for mass selling, a means of masscommunication.

Havmor Company has used many media ofadvertising such as press media, which includesnewspapers and magazines; outdoors advertisingthat includes posters, boards and electric display,

multimedia including web site, etc.

Product boreal magazine

They have attended an exhibition in world leveland in India more than 50 times.

In product today magazine

Tender world

In industrial express

Machine tools

Local channels

The firm is spending more than 2 lakesamount in advertising.

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SALES PROMOTION

Sales promotion is a vital bridge or a

connecting line removing the gap betweenpersonnel selling and advertising the two wings ofpromotion. The sale of a product has to bepromoted or encouraged through a No. ofinfluences at the point of purchase where retailersand prospective customer meet face to face.Sales promotion may stimulate boost consumerdenying at the point of sale or improve dealereffectiveness at the retail outlets.

There are various sales promotional tools suchas:

Samples, coupons.

Price packs.

Premiums.Contest.

Free trials, Price off.

Allowance of goods.

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Havmor company has done all promotionalactivities with a view to increase sales of productsand to attract a new customer to companysproduct. Company has provided many offers such as

Buy one- Get one free, Buy family pack and getattractive gift free, etc. Company has also donedealers promotional activities include cash discounton purchase, display and advertisement allowances,etc.

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INDEX

Srno.

Particular Pageno.

1 Introduction 832 Financial Review 843 Organizational

Structure85

4 Financial planning 865 Capitalization 876 Capital Structure 88

7 Depreciation policy 898 Management of

working capital90

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INTRODUCTION

Financial Management is an integral part ofoverall management. It is not totally dependentarea. It draws heavily on related disciplines andfields of study such as economics, accounting,marketing, production and quantitative methods.

The term nature as applied finance refers toits relationships with closely related fields ofeconomics and objectives. In the early years of itsevolution it was treated synonymously with the

raising of funds. Now in addition to it is procurementof funds, efficient use of resources is universallyrecognized.

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FINANCIAL REVIEWIn spite of staff competition, particularly in Ice

Cream Industry, Havmor Companys TOTAL SALES

at the end of the financial year 2006-2007 is Rs.6167 Lacs earned during previous year is Rs. 4929.8Lacs.

Company has earned the Gross Profit of Rs.404.17 Lacs before depreciation and financialexpenses during the year ended on 31st March 2005as compared to 424.25 Lacs earned during the

previous year.

Net Profit is Rs. 31.8 Lacs during the yearended on 31st March, 2005 as compared to Rs 55.35Lacs earned during the last year.

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Finance is the foremost requirement of anyfirm, finance decision constitutes one of the criticaland key decisions of any department. The duty ofGeneral Manager is to handle accounts and overallco-ordination of finance department. All majordecisions are taken by Managing Director. Plans aremade by General Manager and it is approved byManaging Director. Managing Director is responsiblefor any kind of the result to the Directors of theCompany.

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FINANCIALPLANNING

Finance is an important function of business. The application of planning to the function isfinancial planning. It involves the policies,determination of objectives and procedure relatingto the finance function. Financial planning is animportant function of a financial manager whether abusiness is big or small this function has to be

performed. It is necessary to do financial planningfor an existing as well as new business.

A financial plan is a statement estimating theamount of capital and determining its compensationand another important aspect of financial plan is todetermine the pattern of financing.

Before raising finance it is essential to makeestimates for long term as well as short ternfinancial needs.

Long term financing is generally needed forfixed capital requirement i.e. purchase of fixedassets.

Short term finance is generally needed forworking capital requirement i.e. marketablesecurities, debtors, etc.

In Havmor, the financial planning is done for longtern or short term financial requirements. Financialplanning is necessary to reduce the cost of financeand all the long term and short term finances israised through family funds and overdrafts. The

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requirement of all the long term is also fulfilledthrough bank as and when needed.

CAPITALISATION

The term capitalization refers to the process ofdetermining the plans if financing. It includes notmerely the determination of the quantities offinance required for a company but also the decisionabout the quality of financing. Capitalizationincludes following aspects:

Estimating the total amount of capital to beraised.

Determining the types of securities to beissued.

Determining the composition or proportion ofthe various securities to be issued.

Capitalization comprises of a companysownership capital, which includes capital stock andsurplus in whatever form it may appears andborrowed capital which consists of bonds or similarevidence of long term debt. In Havmor, thecapitalization includes both the aspects i.e. shortterm as well as long term.

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CAPITAL STRUCTUREIn order to run and manage a Company, funds

are needed right from the promotional stage up to

end. Finance plays an important role in companyslife. If funds are inadequate, business sufers. It istherefore necessary that correct estimate of currentand the future need of capital be made to have anoptimum capital structure, which shall help theorganization to run its work smoothly and withoutany stress. Estimation of capital requirements isnecessary, but the formation of capital structure is

important.

The capital structure is made up of debt andequity securities and refers to permanent financingof a firm. It is composed of long term debts,preference share capital, and shareholders fund.

Capital structure of Havmor as on

31.03.2007

Particulars Amt(Lacs)

Share Capital 359.5 Reserves and Surplus 980.5

Secured Loans 1525 Unsecured Loans 383.5

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DEPRECIATIONPOLICY

Depreciation is an expense item. It is chargedon fixed assets. Fixed assets are those which are ofmaterial value, meant for resale and having fairlylong life and are used in the business.

Methods of depreciation are as follows:

Straight line method. Diminishing balance method. Annuity method. Depreciation fund method. Insurance policy method. Depletion method. Machine hour rate method.

In Havmor depreciation is on Fixed Assets isprovided on Straight Line Method.

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MANGAMENT OFWORKING CAPITAL

Capital required for a business can be classifiedunder two main categories.

1. Fixed Capital.2. Working Capital.

The concept of working capital is further

divided into two broad parts they are Gross Working Capital. Net Working Capital.

Gross Working Capital =Total CurrentAssets

Total Current Assets= 2702.4(Rs in Lacs)Total Current Liabilities= 1097.7 (Rs. InLacs)

Net Working Capital= Current Assets Total Current Liabilities

= 2702.4 1097.7 (Rs. In Lacs)= 1604.7 Lacs

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SWOT ANALYSIS

Strengths

Strong market in Gujarat.

No. 2 in Gujarat

Varieties of Ice Creams

Experience of more than 60 years

Weakness

Less use of advertising medium

Lack of Professionalism

Prices are somewhat high as compared toAmul.

Opportunities

Ability to increase production due to installationof new technology

To sell their Ice Creams in other states

Threats

Increasing number of competitors

Increasing demand of Amul

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FUTURE PLANSHavmor is adopting a consumer oriented

strategy as far as the price factor is concerned,where in the priority was on passing more and morebenefits to ultimate consumers. All the benefitsaccruing out of economies of scale were passed toconsumers in the form of value for money offers likeBuy one get one free.

The overall broad strategy of increasing the

consumption was supported by appropriatepromotion and market support. The selection ofmedia and communication strategy was done withan objective of achieving the broad objective growthby growing the market.

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SUGGESTION

After going through practical training in Havmorfor making the analytical report of a company, Iwould like to conclude some suggestions in order toachieve the targets and to make its consumersbrand loyal.

To decrease the cost of production in order tocompete the competitors.

To improve the channels of distribution sothat consumers gets the best taste.

Less sales promotional tools should be used,as too much of sales promotion adversely affectsthe reputation of company.

More marketing research is required in orderto know the taste of consumers.

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CONCLUSION

After visiting Havmor, it seems that Ice Creamis the King of Gujarat. I felt glad of being a part of it.

The visit to such a huge and reputed industry hasimproved my practical knowledge of working inindustry and its various departments.

Havmor is an industry that is very wellequipped by the latest technology and efficienthuman resource.

I wish them very best luck for future.

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BIBLIOGRAPHY

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the book

Author Publicat

ion

1. Personnel

management

C.B.

Memorial

Himalaya

Publishing

House2. Kings

marketing mgt.[2nd Edition]

M.M.Varma

&R.K. Aqarwal

King book

EducationalPublishers

3.Financial mgt.

[3rd Edition]

M.Y. Khan &

P.K. Jain

Tata McGraw

Hill Publishing

co. ltd.

4.

Business

organization

& management

M.C. Shukla S. Chand &

Company96

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