Project Report on SUPPLY CHAIN MANAGEMENT

A Project Study Report On Training Undertaken

“SUPPLY CHAIN MANAGEMENT” Submitted in partial fulfillment for the Award of degree of

Master of Business Administration

1

Preface

Quite frequently these days’ people talk of practical knowledge, both in academic institutions and outside. At each and every aspect in life we require some sort of theoretical and practical knowledge too.

It means only classroom lecture may not be enough to get the proper knowledge either in the business field or social life.

Keeping all this in view, the present report has been written for the promotion the brand position of supply chain management in the highly competitive environment and to study the consumer behavior by working in RSWM.

I am grateful to all those who have helped me in the successful completion of this report.

I hope I have tried my level best in making this Report.

If there is any error, in this Report I want to apologies for that

.

2

ACKNOWLEDGEMENT

I

express

my

sincere

thanks

to my

project

guide, Mr..XYZ (head)

marketing for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance , support for literature, critical reviews of project and the report and above all moral support he had provided to me with all stages of this project.

I would also like to thank the supporting staff

Mr XYZ,

For their help and cooperation throughout our project.

(Signature of Student) XYZ

3

Executive Summary The basic purpose that the project served was to understand the process flow of the RSWM. The project was also aimed at identifying the gaps in the current methodology adopted el by M in its supply chain and logistic management. The project was also aimed for knowing the quality of raw material as well as finished goods i.e., yarn. For this, there are some quality standard norms.

To make a yarn is not an easy task. There are five main department i.e., Raw Material & Sales, IT, Budgeting & Costing, Finance and HR. The whole SCM process is very lengthy.

There is the need of each and every one’s cooperation in this process. Each and every one has its important role to play. There is the mutual integration between all of them, starting with the raw material procurement to dispatching it to the depots.

The whole process is done on the basis of MTS i.e., Make To Stock strategy. The Budgeting and costing department had prepared the plan for the production procedure in one-month advance. According to that procedure they worked in the whole month. In the mean while if any good order will come they can move to that order. The sales manager take the order and according to that order the availability of raw material had been checked if the raw material is available go for the production process else for the ordering of the raw material.

There is basically two types of product i.e., Synthetic and Cotton yarn. At BTM there are five Units for its production. Unit I, II & III for Synthetic yarn production and other IV & V for Cotton yarn production. In the synthetic section, there are three types of Raw Material i.e., Polyester, Viscose and Acrylic. The yarn can be the mixture of any of these two. The yarn, which is produced by it, is called blended yarn. There is the ratio of 65:35 for P/V i.e., Polyester and Viscose. Same material in 70:30.

At last, the yarn had been prepared for the dispatch. There are two type of sales criteria at BTM i.e., domestic sales and export sales.

4

In the case of domestic sales, the yarn had sent to various depots, which are at Ludhiyana, Delhi, Panipat, Bhilwara, and Mumbai. From these depots, it will further move for their customers.

In the case of export, there is the different process. The export procedure start up with receiving of EOPS i.e., Export Order Processing Sheet. After receiving it the whole export process will move further. There are 14 necessary documents must b attached with the dispatch of the yarn.

In both the process logistic plays an important role. In domestic process, trucks are the important convince. There is the contract between BTM and Truck Union Association. The freight has fixed on the basis of distance such as, Panipat 1400/-, Ludhiyana 600/- etc.

In the case of export there are containers

in spite of trucks. The yarn had send through

containers to Mumbai from there it will export via ship to various countries such as, Turkey, Portugal, Israel.

5

DECLARATION

I……………. s/o Mr …………….declare that the project report titled “………………..” is based on my project study study. This project report is my original work and this has not been used for any purpose anywhere.

………………

MBA IV SEM

6

CERTIFICATE FROM COLLEGE To Whom So Ever it May Concern This is to certify that Mr…………has prepared this project report titled “……………”based on this project study. This project report is his original work and it is submitted for the fulfillment of the MBA Degree.

Wish him good success for his future career.

Satish Sharma

7

Content S.no.

1 1.1

Name Introduction to the Industry Importance of the study

Page no.

9-14 15-25

1.2

RSWM LTD

26-31

1.3

Current Scenario

32

2

Introduction to the Organization

33

2.1

Review of Literature

34-38

2.2 2.3

Fabric Business RSWM Unit Mandapam (Melange)

39 40-42

3 3.1 3.2 4

Research Methodology Titie of the study Objective of study Facts and Findings

43-56 57-71 72-85 86-90

5

Analysis and Interpretation

91-95

6

SWOT

96-98

7

Conclusion

99

8

Recommendation and suggestion

100-106

9

Appendix

107

10

Bibliography

108-110

8

INTRODUCTION OF INDIAN TEXTILES INDUSTRY The textile industry holds significant status in the India. Textile industry provides one of the most fundamental necessities of the people. It is an independent industry, from the basic requirement of raw materials to the final products, with huge value-addition at every stage of processing.

Today textile sector accounts for nearly 14% of the total industrial output. Indian fabric is in demand with its ethnic, earthly colored and many textures. The textile sector accounts about 30% in the total export. This conveys that it holds potential if one is ready to innovate.

The textile industry is the largest industry in terms of employment economy, expected to generatm 12 million new jobs by 2010. It generates massive potential for employment in the sectors from agricultural to industrial. Employment opportunities are created when cotton is cultivated. It does not need any exclusive Government support even at present to go further. Only thing needed is to give some directions to organize people to get enough share of the profit to spearhead development.

9

Segments Textile industry is constituted of the following segments • Readymade Garments • Cotton Textiles including Handlooms (Millmade / Powerloom/ Handloom) • Man-made Textiles • Silk Textiles • Woollen Textiles • Handicrafts including Carpet The cottage industry with handlooms, with the cheapest of threads, produces average dress material, which costs only about 200 INR featuring fine floral and other patterns. It is not necessary to add any design to it. The women of the house spin the thread, and weave apiece in about a week.

It is an established fact that small and irregular apparel production can be profitable by providing affordable casual wear and leisure garments varieties.

Now, one may ask, where from the economy and the large profit comes in if the lowest end of the chain does not get paid with minimum per day labour charge. It is an irony of course. What people at the upper stratum of the chain do is, to apply this fabric into a design with some imagination and earn in millions. The straight 6 yards simple saree, drape in with a blouse with embroideries and bead work, then it becomes a designers ensemble. For an average person, it can be a slant cut while giving it a shape, which can double the profit. Maybe, the 30 % credit that the industry is taking for its contribution to Indian economy as good as 60 % this way. Though it is an industry, it has to innovate to prosper. It has all the ingredients to go ahead.

10

Current Scenario Textile exports are targeted to reach $50 billion by 2010, $25 billion of which will go to the US. Other markets include UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan. The name of these countries with their background can give thousands of insights to a thinking mind. The slant cut that will be producing a readymade garment will sell at a price of 600 Indian rupees, making the value addition to be profitable by 300% Currently, because of the lifting up of the import restrictions of the multi-fibre arrangement (MFA) since 1st January, 2005 under the World Trade Organization (WTO) Agreement on Textiles and Clothing, the market has become competitive; on closer look however, it sounds an opportunity because better material will be possible with the traditional

inputs

so

far

available

with

the

Indian

market.

At present, the textile industry is undergoing a substantial re-orientation towards other then clothing segments of textile sector, which is commonly called as technical textiles. It is moving vertically with an average growing rate of nearly two times of textiles for clothing applications and now account for more than half of the total textile output. The processes in making technical textiles require costly machinery and skilled workers.

11

INDIA’S TRADE IN TEXTILS Type

India's Share in World Trade

Yarn Fabrics Apparel Made-ups

22% 3.2% 2% 9%

Over-all

2.8%

Compound Annual Growth Rate (CAGR) of different segments Type

CAGR (1993-98)

Yarn Fabric Made-ups Garment

31.79% 9.04% 15.18% 6.795%

12

TOP 10 EXPORTERS (TEXTILES) Country Billion US$

2006 % share

2007 Billion US$ % share

Hong Kong China South Korea Germany Italy Taiwan INDIA France Belgium-

7.99 7.10 6.04 14.00 9.80 6.13 5.03 7.21

7.68 6.82 5.81 13.46 9.43 5.90 4.83 4.65

14.6 13.83 13.35 13.05 12.9 12.73 9.19 5.86

9.42 8.92 8.61 8.42 8.32 8.21 5.93

Luxembourg Japan Total (Top 10) World

6.54 5.88 74.36 104.00

6.29 5.65 71.5 100.00

7.01 6.75 110.62 155.00

4.52 4.35 71.37 100.00

5.64

Top Ten Suppliers of MFA Clothing: Rank Price (AGR 2006-2007)

13

2006

2007

Rank Price

Ranks and Average Price

Ranks and Average Price CAGR 200506

Country

Rank in Value

Rank in Volume

Avg. Price, Ecu/Kg

Rank in Value

Rank in Volume

Avg. Price, Ecu/Kg

China

2

1

9

1

1

8

3

Turkey

1

2

2

2

2

6

7

Hong Kong

3

3

6

3

3

5

9

Tunisia

4

7

3

4

6

3

4

Morocco

5

6

5

5

7

4

2

Poland

6

8

2

6

8

1

8

India

7

5

7

7

5

9

10

Bangladesh

8

4

10

8

4

10

5

Romania

9

10

4

9

10

2

1

Indonesia

10

9

8

10

9

7

6

IMPORTANCE OF THE STUDY

14

Being a student of MBA it is very essential to have a practical knowledge to tackle problem and difficult situations surprisingly found as in an organization only to study business administrative course is not the solution of the problem, which arise in practical field.

There is no certain formula for any particular problem, but the aim of this study is to develop the ability of decision-making. A right decision at right time and right place itself help organization to run effectively and efficiently. This study gives an idea of all marketing activities. So the way a problem is solved right decision-making and knowledge of different type of making activites give much more importance to study. Only in six weeks training it was not possible to understand it so deeply, but an overall view could be developed.

SUPPLY CHAIN MANAGEMENT (SCM) Supply chain: - The network of retailers, distributors, transporters, storage facilities and suppliers that participate in the sale, delivery and production of a particular product .

15

“Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufactures, warehouse, and stores, so that merchandise is produced and distributed in the right quantities, to the right locations, and at the right time, in order to minimize systems aside costs while satisfying service lend requirement”.

Supply chain = Linkage of organizations, people, procedures and systems involved in getting products to customers.

SCM is the management of the entire set of business processes that produces and delivers products/services to the final customers.

OBJECTIVE OF Supply Chain Management (SCM)

“To reduce or eliminate the buffers of inventory that exists between organization in a chain through the sharing of information on demand and current stock levels.”

Supply Chain Management or SCM as it is popularly known is also known as Value Chain Management. This is nothing but handling through a single system, all interaction that deals with people external to an organisation.

Supply Chain Management deals with two distinct areas: the customers and the vendors.

On the customer side it deals with all transactions dealing with the customers, from inquiry to ordering to order execution to final delivery and payment. Another part of the system would be there to handle returns from customers as well as handling grievances. More transparent the system is to the outside user; less is the interaction required on a personal level and greater is the confidence that the customer builds on the organization.

The upstream value chain consisting of suppliers, when integrated in the company’s internal chain, leads to partnership between the two. With the onset of this concept, the vendors are no longer considered as suppliers, but viewed as partners in progress. This leads to the formation of narrow, but dedicated vendor base, and who get committed to the buyers’ organization. Similarly, the downstream value chain encompasses the distributors and dealers, which when integrated with the company’s internal value chain, results in better marketing inputs such as product development, distribution, and customers’ services.

Cost reduction is a perennial concern of every well-run organization, and the only way this can be achieved, is by re-engineering the Supply Chain. The supply chain management 16

concept will result in better control on deliveries, quality, inventories, and prices, assuring a long-term association between the vendor and the buyer to a mutual benefit. In fact, the company can have a competitive edge in the market by using its scarce resources on the activities that it can do the best, i.e. by focusing on the core competency, and leaving the rest to the supply chain.

The key to effective Supply Chain Management is supply chain integration – ensuring that all parts of the supply chain work together, rather than at crosspurposes.

Supply

chain

integration

is

a

state

where

timely

information

transmitted among trading partners is in manner that lets them readily adjust to changes in requirements for material, production, or delivery. The progress towards

the

advantage

idea

will

of

gain

supply momentum

chain as

integration the

growth

as of

a

source

‘time

of

based

competitive competition’

accelerates. In markets that are increasingly volatile, responsiveness becomes a critical competitive requirement. The critical decisions to be made are not about minimizing costs but about wherein the chain to position inventories and available production capacity in order to hedge against uncertain demand. In the business of fashion almost 95% of the products are completely new designs and the demand forecasts often err by as much as 200%. This high uncertainty of demand is intrinsic and inherent to fashion products.

Devising a responsive supply chain alone can help cope up with this phenomenon.

Companies like Benton and The Limited have gained significant advantage through their ability to respond rapidly to fashion changes in the markets they serve.

Through the use of highly coordinated logistics and supply chain structures, driven by the real- time capture of sales data, these companies adapted their product range and their volumes in weeks rather than months. A central theme of supply chain integration is “to identify the unnecessary activities, which do not add value to the supply chain or activities which would be better carried out at a different place or time in the supply chain, address the inefficiencies caused by them and develop solutions by working closely with supply chain partners.”

17

Some of the areas where the members in the supply chain may greatly benefit through supply chain integration and also add value to customers are: • • • • • • • • • •

Joint Product Development Product Harmonization And Customization Vendor Managed Inventory (VMI) Operation Improvement Cross- Docking Floor Ready Merchandise (FRM) Category Management Channel Partnerships Quick Response Systems Information Sharing

18

Cycle Supply Chain Management •

Supplier of raw materials

•

Manufacturer

•

Center decision makers and funders

•

Warehouses

•

Regional stores (Depot)

•

Clients

Types of Supply Chain •

Full Supply – supply matches demands

•

Limited Supply – demand exceeds supply

•

Integrated Supply Chain

•

Vertical Supply Chain

19

SUPPLY CHAIN INTEGRATION STRATEGIES

In traditional supply systems, suppliers and manufactures operate rather independently.

Suppliers have very little information on what manufactures need until they receive orders from manufactures. Similarly, manufactures do not know what materials are available with suppliers until they place an order and get a corresponding response. The status of information with manufactures as to what is in stock with a multitude of distributors, dealers and retailers is hardly available and if available is seldom reliable. As a matter of fact many manufacturers consider obtaining this information as unwarranted because sale transactions are considered to be completed once stocks reach these channels. Many stockiest also consider disclosure of this type of information of stock as uncalled for as this is confidential. But in an efficient SCM, manufacturers, suppliers, distribution channels and customers are linked in the form of a chain to develop and deliver products as a single organization of pooled skills and resources. The process of linkages amongst the participants is the most significant factor. Higher the integration process, greater is the success of a supply chain system. The integration can have three forms: •

INFORMATION INTEGRATION

•

DECISION INTEGRATION

•

FINANCIAL INTEGRATION

INFORMATION INTEGRATION

Information

plays

the

most

crucial

participants

share confidential

role

in

and critical

integration.

The

information. In

a

well implemented system the participants are aware of the stocks, demands,

and

the

availability

of

supplies

at

all

times.

The

supplier knows what the manufacturer needs and the manufacturer knows

the

stock

and

needs

of

the

distribution

channels.

Information Technology is playing an important role in linking.

Electronic Data Interchange has been successfully tried. But the real

breakthrough

has

come

from

advanced

computer

software

as

Enterprise (level) Resources Planning (ERP) and Planning Engine Application (PEA). ERP for Example, organizes and interconnects 20

most day- to- day tasks, such as entering orders, tracking product shipments, scheduling production and updating sales forecasts and balance sheets. Planning and implementation of information systems can

also

help

to

analyze

product

flows,

order

patterns,

inventories, obsolescence, levels of production and supply costs.

DECISION INTEGRATION If the various participants of the supply chain system operate as one

congruent

whole,

demands

of

integration

call

for

a

joint

decision- making exercise. The participants are expected to meet at frequent intervals to take a joint decision on issues such as inventories, distribution, trade- offs to strike a balance between contradictions and even pricing policies. The entire supply chain system would be behaving as if it were one single company. This task is however, not easy to achieve as human element is involved and consensus decisions only signify the path of least resistance and

minimum

risk

involvement.

The

decision-

integration

also

implies that a participant will have a right to exercise controls on

operational

voice

of

activities

discontent

in

of case

the the

other

participants

operations

are

and

raise

contrary

to

decisions already made.

FINANCIAL INTEGRATION Financial integration implies that each of the participants has a financial stake in operations of other participants. Suppliers, for

example

manufacturers

can

be

and

equity

holders

manufacturers

in

the

extend

venture their

of

the

financial

participation to the distribution channels. With this arrangement the participants become a part of one set- up and tend to work towards achievement of objectives which become common goals. Each participant

becomes

dependent

on

the

other

and

the

right

functioning of the system id the common concern. Failure of one 21

participant brings an immediate response from other participants to correct the situation. Fear of failure binds the participants and keeps them together. This is no doubt one of the strongest integrations, but has been rarely practiced except in large set ups

where

financial

participation

is

otherwise

necessary

for

business survival.

22

SUPPLIER ROLE IN INTEGRATED SUPPLY CHAIN Efficient customer support and productivity improvement are the key ingredients for the survival of any business in today’s world.

Clear end-to-end visibility- right from the supplier to the customer.

Consequently, whatever an organization does for the development of its own employees have to be extended to the suppliers as well.

Some of the areas where a few organizations have taken the initiative are : •

Training and development

•

Motivation

•

Reward and recognition

•

Role clarity with respect to overall game plan.

•

Adoption of best practices.

The larger the supplier base, more difficult the above tasks are for any organization and therefore there is a need to reduce the number of suppliers to a manageable size.

The various modes that are used for transportation of the finished goods are Trucks and Ships. Trucks are used for distributing in India whereas ships are used for the export purpose. They have alliances with various truck transporters in order to distribute the products all over India i.e. they follow third party transportation. They have yearly contracts with them. As their major markets are abroad, ships are used for export of the product because waterways are comparatively cheaper than airways.

Basically, at the time of appointing a distributor or a dealer, most of the time they prefer those who are directly or indirectly related to the company. The basis on which evaluation is done is, Infrastructure provided by the dealer and distributor 23

•

The person or the company has to be Trustworthy.

•

Contract with them has to be Cost Effective.

•

Excellent Service should be provided by them.

At RSWM{ SCM}, they do have motivational programmes for their Depots (Distributors).

The biggest motivation is monetary benefits to the dealers and distributors. They give emphasis to “More Sales More Commission”. This helped RSWM in a very big way to capture the domestic markets, which resulted in increase in the sales of RSWM. Their organization is functionally integrated which helped them in achieving smooth and fast flow communication from one functional department to the other.

It

also

helps

in

achieving

smooth

relationship

between

the

functional

departments within the organization

LOGISTIC Logistics is about moving materials, information and funds from one business to another or from a business to the consumer. It is a vital part of the business economic system and is a major global economic activity. In fact 10-15 per cent of product costs are logistics related. Worldwide, logistics constitutes about $2 trillion a year. For any country, the logistics cost is estimated between 9 and 20 per cent of its GDP. Every company dreams of achieving the seven R's - delivering the right product in the right quantity and the right condition, at the right place, at the right time, for the right customer at the right cost. Effective logistics management alone can make this possible.

Logistics is one of the oldest and also the newest activities of business management. It involves combining diverse functions and service providers who may be culturally and objectively different.

In the past, quality of products and services was the key differentiating factor for companies operating in the same market. In due course, quality and low cost became the winning combination.

24

Today, responsiveness to the customers' needs is the determining factor. An enterprise that caters instantly to the needs of the customer is the winner. Integrated logistics can serve as a potent tool for success in today's competitive business environment.

Logistics is an organized process of managing the flow of merchandise from the source of supply - the vendor, wholesaler or distributor - through internal processing functions like warehousing and transportation, until the merchandise is sold and delivered to the end customer.

Logistics management aims to reduce inventory-holding costs and improve profits, while enhancing customer satisfaction.

Anything can be ordered online, but receiving a tangible product is impossible. The difference between e-business success and failure lies in a company's ability to manage the logistics.

LOGISTIC MANAGEMENT: Michael Porter in his famous book "Competitive Advantage'' has spoken of the value chain approach and emphasized logistics as one of the most important tools for competitive advantage.

The various processes and elements that are part of logistics as a discipline are: •

Inbound logistics: Purchasing, Inbound transportation, Inventory Management.

•

Manufacturing: Production planning systems, Machine scheduling system.

•

Outbound logistics: Order booking process, Distribution management, outbound transportation, and Warehouse management systems.

As customers started demanding improved servicing standards, fast cycle time has become the key factor for business success, whether it is custom made tailoring service in Hong Kong or development of a new car in Detroit.

25

Before delving deep into logistics, a look at the current business scene will be great help.

SCENARIO OF LOGISTIC IN INDIA: At present, companies specializing in logistics operations in India use traditional technologies and cater to stand alone services like transportation, warehousing, clearing and forwarding. There is tremendous scope to upgrade the technology, integrate the entire supply chain, improve productivity levels and bring down operating costs. Any technology that can improve productivity in transportation operations will be a great boom to the economy both directly and indirectly with opportunities for 10-12 per cent reduction in costs. Besides the savings on downstream users of transport will be much higher and the cost multiplier effect on the economy will be reduced to that extent.

Given the emerging business and technological trends there are possibilities for adoption of innovative logistics solutions specifically designed for India. In addition, there is a requirement for an integrated strategy towards developing logistics and its related IT infrastructure and also enhancing its industry base.

In recognition of the growing need for technology-enabled solutions in logistics in India and abroad, many companies such as eLogistics are taking shape. In fact, there are a dozen multinational logistics companies such as Exel, Bax Global and Menlo which have started operations in India during the last few years.

Today logistics management in India has become complex with about ten million related outlets to cater to the needs of 1000 million people.

The logistics market in India is estimated to be Rs. 260,000 crores and constitutes 13 per cent of the GDP. It is much higher than for the U.S. but lower when compared to countries like China and Korea.

A reduction in logistics costs by one percentage point will mean a saving of $4.8 billion or Rs. 21,600 crores annually.

26

Besides significant benefits can be reaped through the multiplier effect of better logistics on all economic sectors.

RSWM Ltd. RSWM, MANDPAM, is a part of LNJ Bhilwara Group.

LNJB group has emerged as one of India’s leading corporate houses, in the last four decades. The pursuit of leadership began in 1961, a journey that was initiated by Mr. LAXMI NIVAS JHUNJHUNWALA (LNJ), whose vision and values continue to drive the group even today.

The LNJB Group is a multi –product conglomerate with a globalpresence, and with business interests spanning a diverse range of industries… like Textiles, Power- Generation, Graphite-Electrodes, Sponge- Iron, InformationTechnology and IT-Enabled services.

The Group has successfully integrated its operations into today’s Global – Economy, with export earnings compromising over 46% of total revenue with over 20,000 employees and 17 production units located strategically across the country.

The LNJB Group’s leadership in the textile industry is exemplified in the 27

equity that its brands enjoy in the Indian market place…. like MAYUR Suitings, BSL Suitings, LA Italia Fashions and Buddy Davis Leisurewear.

The decade of 60’s that saw John F. Kennedy take over as the President of the United States. It was the decade of Woodstock. A decade in which the seeds of enterprise were sown in the desert sand of Rajasthan in 1961 with a small Textile unit with just 12500 spindles manufacturing 20’s carded cotton hosiery yarn. Another 13000 spindles for synthetic yarn were added. A unit that began spinning out a success story.

A vision that saw a small textile unit pioneer a boom in the synthetic yarn market and emerge as a leader in both yarn and fabrics over time. A leader called Rajasthan Spinning & Weaving Mills Ltd. or simply RSWM. A name that stands for excellent yarns and fabrics. RSWM is Flagship Company or unit of the LNJB Group. At present, they have an installed capacity of 131376 spindles and 69 looms.

They also do Grey yarn, with strengths in Polyester/Cotton and other Cotton Blended yarns---- Cotton Blends like Acrylic, Viscose and Viloft oriented yarns and 100% Cotton MELANGE.

28

ORGANISATION STRUCTURE

29

VISION STATEMENT: “To

strive for excellence through commitments, integrity, honesty and team work.”

MISION STATEMENT: “To

be a model amongst the textile spinning, capable of producing high quality blended for knitting and weaving.”

QUALITY POLICY: To continuously modernize, expand and technologically upgrade our Textile, Yarn divisions for producing excellent quality goods to meet the changing customer needs, improve foreign exchange earnings by promoting exports, face global competition and further improve our global presence, fame and glory. To ensure customer satisfaction, become cost effective, to promote employee participation and to implement innovative methods for enrichment of quality of life of all concerned.

Our people Objectives To help people in HCL Infosystems Ltd. Share in the company’s successes, which they make possible; to provide job security based on their performance; to recognize their individual achievements and help them gain a sense of satisfaction and accomplishment from their work.

CORE VALUES: •

Complete Satisfaction of Buyers/Consumers is our Motto.

•

Manufacturing of blended yarn as per the customers' requirements and market demand.

•

Keeping pace with the rapidly changing technology by continuously balancing, modernization and replacement (BMR) of plant and machinery.

•

Enhancing the profitability by improved efficiency and cost controls

•

Betterment of Mills Employees as quality policy.

•

Protecting the environment and contributing towards the economic strength of the country and function as a good corporate citizen.

30

Competitors They are getting stiff competition both in domestic and foreign markets. As they are into both Finish goods and gray goods, so the competitor base is comparatively large as compared to the other companies.

The essentials of exports is Time management and less price, which will give the organization an upper hand as compared to its competitors like China, Korea, Taiwan, Pakistan, etc. For instance, Chinese cloth is preferred in the international market as against Pakistani cloth because of mismanagement and untimely delivery by the Pakistani companies. Now BTM is improving and growing more than the growth rate of the industry.

Now India is emerging as a biggest threat for the Chinese companies in textile industry.

In Indian market they are getting competition from companies like RSWM, Vardhman, Nagar Group etc. The competition is especially on the basis of price but the quality offered is half the quality of the BTM’s products. They have increased their customer base on one aspect that is Quality of the product. Nowadays customers are more quality conscious.

They can compromise on the price but not on the quality. Now BTM has created its USP i.e. QUALITY.

IMPORTANCE OF THE STUDY 31

Being a student of MBA it is very essential to have a practical knowledge to tackle problem and difficult situations surprisingly found as in an organization only to study business administrative course is not the solution of the problem, which arise in practical field. There is no certain formula for any particular problem, but the aim of this study is to develop the ability of decision-making. A right decision at right time and right place itself help organization to run effectively and efficiently. This study gives an idea of all marketing activities. So the way a problem is solved right decision-making and knowledge of different type of making activites give much more importance to study. Only in six weeks training it was not possible to understand it so deeply, but an overall view could be developed

Current Scenario 32

Textile exports are targeted to reach $50 billion by 2010, $25 billion of which will go to the US. Other markets include UAE, UK, Germany, France, Italy, Russia, Canada, Bangladesh and Japan. The name of these countries with their background can give thousands of insights to a thinking mind. The slant cut that will be producing a readymade garment will sell at a price of 600 Indian rupees, making the value addition to be profitable by 300% Currently, because of the lifting up of the import restrictions of the multi-fibre arrangement (MFA) since 1st January, 2005 under the World Trade Organization (WTO) Agreement on Textiles and Clothing, the market has become competitive; on closer look however, it sounds an opportunity because better material will be possible with the traditional

inputs

so

far

available

with

the

Indian

market.

At present, the textile industry is undergoing a substantial re-orientation towards other then clothing segments of textile sector, which is commonly called as technical textiles. It is moving vertically with an average growing rate of nearly two times of textiles for clothing applications and now account for more than half of the total textile output. The processes in making technical textiles require costly machinery and skilled workers.

2 Introduction to the Organization 33

Introduction RSWM Mandapam Unit, Bhilwara is a part of LNJB group. It has 27 units in different sectors with the support of 10 banks including private and government undertaking.

RSWM is engaged in manufacturing synthetic and blended spun yarns and fabrics. RSWM offers one of the broadest ranges of products in terms of fibre blends, counts and shades. The current yarn portfolio of the company can be classified into three main categories – a) Grey Yarn, b) Dyed Yarn, c) Melange Yarn.

The company owns the Mayur brands under which it markets its blended suiting fabrics in the domestic market.

RSWM Mandapam unit manufactures Melange Yarn-a premium product.

Product range of RSWM Mandapam (Melange) Unit Ecru, Grey, Anthra, Charcoal black, Melange in more than 250 shades in cotton and cotton viscose blends. Dyed Melange Yarn in more than 1000 shades.

The concept of Manufacturing Excellence (ME) was set in motion at RSWM, Mandapam with the objective of achieving the highest level of production.

Review of Literature Market segmentation is the segmentation of markets into homogenous

34

groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix.

 Bases for segmenting consumer markets  Geographical segmentation  Demographic segmentation  Psychographic segmentation  Behaviour segmentation

 Reasons for Market Segmentation  Better serving customers needs and wants  Higher Profits  Opportunities for Growth  Sustainable customer relationships in all phases of customer life cycle  Targeted communication  Stimulating Innovation  Higher Market Shares

Methods  Define the total market  “Choose the bases of segmentation” [I have chosen this technique ]  Draw chart & map products and segments 35

ďƒź Target an opportunity and position a solution

Observation My observation in this project that they don’t have any problem in Market Segmentation. They have marketing offices in Mumbai, Tirpur, Bhilwara, Delhi, Kolkata, Banglore, Ludhiana. These are the cities, which cover all over India’s market.

Analysis I have found that the Melange Yarn make for special type of clothes. It is basically used for T-Shirts and Hosiery. So there is no need to more approach the consumers. Because Mandapam unit makes Melange Yarn, Grey Yarn & Dyed yarn, which have less producers. consumers as possible

BUSINESSESS

RSWM is engaged in manufacturing synthetic and blended spun yarns and fabrics. It is one of the largest exporters of synthetic yarns from India and has commanding position in the domestic market.

RSWM Exports its yarns and fabrics to over 60 countries in Europe, 36

North and South America, the Middle East, Africa, South East Asia and Australia.

Currently the yarn business of the company accounts for over 85% of the revenues, while fabric accounts for the rest 15%.

Exports of this company grew by 32% from Rs. 249.7 crore to Rs. 329.55 Crore, while domestic sales grew by an unassuming 4.8%. Company’s gross turn over is increased by 13.7% from Rs. 671.6 crore to Rs. 763.6 crore.

The company has also ramped up its spinning capacities and added fabric processing capabilities by way of acquisition. Company is also in the process of setting up a new garments business in Banglore.

37

38

YARN BUSINESSESS RSWM offers one of the broadest ranges of products in terms of fibre blends, counts and shades. Fibres processed by the company include polyester, viscose, acrylic, cotton, wool, rayon, polyamide and linen. The current yarn portfolio of the company can be classified into three main categories – a) Grey Yarn, b) Dyed Yarn, c) Melange Yarn.

Grey Yarns are produced using blends of different synthetic fibres such as polyster and viscose or blends of synthetic and natural fibres. Although this is a relatively lower value added segments, it is the largest in terms of the size of the market and is crucial to the product basket offered to customer.

Dyed Yarns are produced in blends of synthetic fibres, mostly polyester and viscose, RSWM’s Gulabpura plant. They are relatively higher value added product and are made according to customer specification of blends, counts and shades.

Mélange Yarns are premium products made cotton and its blends, and are used manufacture of knitwear and hosiery. Export-oriented units in India consume most of the current output. After the capacity expansion, RSWM has become one of the largest manufacturers of Melange Yarns in the country.

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FABRIC BUSINESS Fabrics business of the company is a natural extension to its yarn operation. The company manufactures a range of blended suiting fabrics and has a good presence in the domestic market. The current size of the business is around 12 million metres of fabrics which 4 million metres are outsourced.

The company believes that there is a huge potential for the business in the new market scenario and has plans to strategically move to the higher value added products in the segments.

The company owns the Mayur brands under which it markets its blended suiting fabrics in the domestic market. The company signed ace Indian cricketer Virender Sehwag as the brand ambassador for Mayur and conducted an aggressive marketing and promotional campaign to further rejuvenated the brand.

40

RSWM Unit Mandapam (Melange) RSWM Mandapam unit manufactures Melange Yarn-a premium product. At this unit, the company is implementing an expansion programme that will results in the addition of about 10800 spindles. This will enhance the company’s presence in higher value added knitted garments and related products segments. This expansion, RSWM’ Mandapam Unit will become one of the largest Melange Yarn plant in the country.

The Mandapam Unit was established in May 1993 at 15 km. ahead of Bhilwara on the Bhilwara- Chittor Highway (NH 79) with the name of Melange.

The commercial production of 100% cotton viscose blended yarn started in March 1994.The Mandapam Unit Specializes in fashion oriented yarn. The Unit is producing 100% cotton Melange Yarn, which is the blending of two or more different colours of dyed fibre + grey fibre. Mandapam Unit has 29424 Spindles for spinning. Its producing 4000 Metric Ton (MT)/annum. 4 cotton fibre dyeing machines with an output of 1800 MT/annum. 3 cotton yarn dyeing machines with an output of 800 MT/annum. The plant employs state-of-the-art machinery to produce top quality Melange Yarn, Fibre Dyed Yarn and Yarn Dyed Yarn.

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PRODUCTS OF

RSWM

Product range of RSWM Mandapam (Melange) Unit Ecru, Grey, Anthra, Charcoal black, Melange in more than 250 shades in cotton and cotton viscose blends. Dyed Melange Yarn in more than 1000 shades.  Twisted/ Two tone Yarn in cotton  Cotton Fibre Dyed Yarn  Cotton Yarn Dyed Yarn  Cotton/ Tencel blended Melange Yarn  Cotton/ Acrylic blended Melange Yarn  Cotton/ Polyester blended Melange Yarn  Cotton/ Linen blended Melange Yarn  Cotton/Wool blended Melange Yarn  Cotton/Viloft blended Melange Yarn  Cotton/ Grasi-Soft blended Melange Yarn  Cotton/ Nylon blended Melange Yarn  Cotton/ Tencel/ Amicor blended Melange Yarn  Cotton/ Herbal Dyed Melange Yarn  Cotton/ Silk blended Melange Yarn

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Spindles capacity of various Units Unit Banswara Gulabpura (Mayur)

2006-07 61200 56160

2007-08 87792 63456

Rishabhdev Mandapam (Melange)

33068 18576

33168 29424

Total

169004

213840

Stage set for “Manufacturing Excellence� at RSWM, Mandapam The concept of Manufacturing Excellence (ME) was set in motion at RSWM, Mandapam with the objective of achieving the highest level of production.

The aims of ME are Zero Accident, Zero Breakdown, Zero Customer Complaints, Zero Defects and Zero Loss.

ME comprise the Top Management team, First Level Team and Second Level team. 48 teams with an average of 15 members each have been engaged in the exercise across the plant. 489 workers were trained during Jan & Feb with duration of one hour per worker. The second level team members, which include 23 high level officers, participated in a one-day training camp.

Everyone at RSWM, Mandapam is excited about ME and the entire unit is geared up for achieving the goals.

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3. Research Methodol

In today's economic environment, limited marketing budgets are the rule, not the exception. One way to maximize marketing ROI is to make sure you are targeting the right customers, with the right products and messages, at the right time. Since technology markets are not homogenous, market segmentation is an effective way to divide customers into groups based on similar needs, attitudes, or behaviors.

When discussing segmentation, the actual model can be thought of in terms of "buckets." In other words, customers are divided into buckets by there common attributes窶馬eeds, purchase plans, brand loyalties, etc. Some attributes may end up being basis variables (the variables that assign a customer to a bucket) and others may end up being descriptive variables (they describe a bucket, but may not be so unique to each bucket to be the basis of segmentation). The following table identifies some of the variables Sage typically investigates when developing a segmentation model.

44

Research is a common parlance refers to a search of knowledge. One can also define research as a scientific and systematic search for pertinent information on a specific topic.

The Advanced Learner’s Dictionary of Current English lays down the meaning of research as “a careful investigation or inquiry especially through search for new facts in any branch of knowledge.” 

Research Process: This project started first knowing the actual scope of the project and understanding the need of this project. In other words it can be said that first the purpose of the project was known and only after that actual planning and the real implementation was started. As the objective behind this project was to get the information about the investment pattern of the high net-worth individuals and to know the distribution channel through which they take most of their investment decisions. To extract this information a thorough planning had to be done, so I first started with designing the questionnaire for the clients whom I was going to target and to know about their investment pattern. The main things to be known from the clients were: o Turn over of the organization o Their annual investment o Their preference for the various investment instruments o Their distribution channel

So the basic structure of the questionnaire was formed and it was first tried on some sample individuals. This was basically done to know the various limitations of the questionnaire and to get the better idea of how effective the questionnaire actually is.

Once this was done, the next step included making the required changes in the questionnaire according to the need.

After designing the questionnaire the next step in the project included to know about the clients whom I am going to target and how I am going to target them. For this 45

first data about the city had to be collected so that I could segregate the persons whom I am going to target. So the next stage of the project included Data Collection.

 Data Collection: One of the most important stages in any research project is the data that has to be collected for the information to be actually collected in the field. Data collection acts as a building block on which the actual construction has to take place. It is like the base which has to be strong enough to hold the huge structure. Without the proper and useful data collected it becomes very much difficult to get into the field and collect the actual information. So that is why data collection is the most important stage in a research project. Understanding this, due importance was given to data collection during the initial stages of my project and it was the constant effort to get more and more details of the industry and the actual business environment. Data during this project was collected from the following two sources:

 Primary Sources  Secondary Sources Before getting into the sources from which data was actually collected, it will be better to first state the difference between these two sources of the data collection i.e.

Primary Sources and Secondary Sources. Secondary data would be acting the input for the study. These secondary data are of the nature which has already been collected by some other researcher and they are further being used by some other researcher for getting some fruitful information out of the data and establishing some relation with respect to some other variables, whereas collection of data or information which is not available and has to be collected first hand, is known as the primary source of data collection.

46

Secondary Sources: During this stage data was actually collected from the following sources: 

Internet



Directories: o Yellow Pages Directory o Telephone Directory



List of Chartered Accountants



Local Newspapers and Magazines These are the sources which actually helped me to start my project with.

Information about the various industries, major hospitals and other major organizations which are operating in were collected from this source only. It was from this source that I got to know the about the City in detail. This was the source which gave me my first insight about the city and the various industries operating in it, it may be leather industry, textile industry, pan masala industry, spices industry, education industry or for that matter any other industry.

Primary Sources: After collecting the basic information about the city from the secondary sources the actual information which was not available from any other source had to be collected by self only. The various sources from which information was collected directly included: o Local Residents o Chartered Accountants 47

o Company official

Demographic

Needs

Attitudes

Company size

by Industry-specific trends Leading edgeness number of employees Vertical industry Current use of Brand loyalty complimentary technology (need for compatibility, migration path) Customer status Price sensitivity Brand preference (current customer, past customer, potential customer) Number of locations Technology requirements Channel preferences Geographic scope Feature requirements Purchase process (product-specific) Company size

by Competitive environment Outsourcing revenue (need for specific propensity technology benefits)

Market segmentation is typically used for one of the purposes listed below. For my segmentation project to be successful, I pick one as primary focus-as with any type of market research, lack of focus is a significant risk factor.

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 Product-focused segmentation—to find sales targets ("slam dunks") for a specific product or service.  Company-focused segmentation—to discover customer groups that are aligned with your company's overall strengths/strategic directions.  Customer-focused segmentation—to analyze a broad population for the purpose of identifying new or emerging opportunities based on needs and attitudes.

Product-focused segmentation is tactical—that's not a bad thing.

In fact, it can be very effective for many companies. For example, Sage once did this type of project that not only identified customer groups that would be most likely to buy the client's product, but also challenged assumptions about how widespread demand would be. In this case, it wasn't happy news. However, it was an important reality check that led to more realistic forecasts and identified how

to

make

the

product

appeal

to

additional

customer

groups.

The second type of segmentation—company-focused segmentation— divides a market based on the fit with your company's profile. Examples of this include dividing a market based on awareness of your brand, existence of needs that aligns with your technical strengths, or fit with your distribution strategy.

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The third type of segmentation project is more strategic. This type of needs-based segmentation goes beyond preparing for marketing a point product. Rather, it delivers input for aligning with broader customer needs. The output of such a project is the identification of customer segments, usually 4 to 8 (but sometimes more). This method groups members into the segments based on naturally occurring combinations (the following table shows a simple, generalized model). This type of segmentation is used to understand with which customer groups our client should be developing long-term relationships.

Ultimately, these three approaches are not mutually exclusive. Still, prioritizing an approach will ensure that upon project completion, I will have a model that meets your needs.

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How can we use Methodology?

Segment A

Segment B

Segment C

Leading Low Low Mid edgeness Number of Low High Mid remote sites (potential demand driver) Adoption of None Low High virtual organizational structure (potential demand driver) Product Low Low Mid category awareness Current use of None Low Low potentially competitive solutions Company size Under 500 Under 500 2,500+ range employees employees employees Vertical Mixed Retail Manufacturing industry Publishing Education associations Government Financial services

Segment D

High High

High

Mid High

500 to 2,500 employees Insurance Transportation Professional services Healthcare

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Segmentation for Actionable Results: Segmentation is a highly actionable type of research. The table below shows some specific actions that are a direct result of segmentation analysis.

Results Findings

Results in Action

A customer group exists that values Start a targeted brand awareness strengths you possess, but their campaign, and emphasize relevant awareness and perceptions of your needs proactively. brand are weak.

A customer group exists that has Monitor on an ongoing basis to see if needs you can meet, but they are satisfaction changes occur. This group satisfied with their current suppliers. may simply be a lower priority for now.

A customer group with which you Get cracking on development or have a strong presence has partnership efforts. Prepare to take emerging needs you are not currently proactive steps to keep able to address. loyalty/preference for the brand strong.

A customer group exists which has Consider a longer-term effort through unmet needs you can address, but awareness and educational they have low/no awareness of your campaigns. Knowing that market product category. education can be a lengthy process, make a go/no go decision about allocating resources to target this potential, but longer-term opportunity.

Segmentation is extremely actionable data, and it can deliver a 52

competitive advantage. While your competition uses a shotgun approach to sales and marketing, you can use your segmentation model to finely hone your product, marketing, and sales efforts. You can identify your near-term opportunities, as well as customer groups that represent a longer-term potential.

Segmentation models also lead to exciting marketing opportunities in these days of e-marketing. Different customer groups can be targeted with different Web sites or personalization techniques. Some companies even develop on-line communities to support the different customer groups they target.

Who

Should

Conduct

Segmentation

Research?

Market segmentation is a highly actionable analysis if you are facing the following types of marketing questions: What types of customer should I be targeting for near-term sales?

What customer groups exist that have needs that my solution addresses, and how do I find them?

How can I customize my marketing messages to resonate with target customers?

How can I identify opportunities for competitive differentiation?

Description 53

For all product types and markets, different groups of customers will have different requirements. The market for any product can be split into individual segments, where each segment describes a number of customers with similar requirements, tastes, characteristics, interests, lifestyles or responses to the 'marketing

mix'.

Effective segmentation can indicate gaps in the market and provides

insights into the requirements of different types of users, enabling potential product offerings to be carefully positioned to meet those needs.

For all product types and markets, different groups of customers will have different requirements. The market for any product can be split into individual segments, where each segment describes a number of customers similar requirements, tastes, characteristics, interests, lifestyles or responses toto the 'marketing mix'.

Methods The process of market segmentation can considered in four stages:  Define the total market: The way a market is defined impacts upon how it can be segmented.

For example, a market could be called 'small cars' or 'personal transport', depending upon the definition, the segments, which emerge, could be very different.  “Choose the bases of segmentation”: “A market can be segmented in many different ways. For the textiles 54

or yarn market, many bases of segmentation may be appropriate, including age, lifestyle, distance travelled, occupation etc. There is no correct approach, but well chosen bases help to describe the motivations, desires or characteristics of users and reflect the benefits that different clusters of users may derive from the product. It is useful to try a range of different bases. Where possible avoid bases, which describe price and chose bases which reflect the demographics or behaviour of users.â€? ďƒ˜ Draw chart & map products and segments: The perceptual map (illustrated) provides a visual way of representing the market and mapping your own and competitive products. An effective map will enable clusters of users to be identified and where possible, named. This is especially helpful when trying to determine whom to involve in customer research. The relative position of products is dependent upon the perceptions of users & customers. ďƒ˜ Target an opportunity and position a solution: Having positioned the different competitive offerings, it should be possible to identify gaps in the market and target opportunities for new products.

By understanding the needs of a segment, it is possible to closely position a new product to match these user requirements.

55

I have many option of techniques to find the best of market 56

segmentation. But I have chosen the second methodology that is Choose the bases of segmentation. In this technique we can find the demographic and behavioral variable, which reflects that kind of customers. Because Demographic variables describe characteristics of populations and include age, gender, race, education, occupation, income, religion, marital status, family size, children, home ownership, socioeconomic status, and so on and Behavioral variables include product usage rate and end, brand royalty, benefit sought, decision-making units, ready-to-buy stage, and so on. This information can be extremely useful for marketing purposes. In yarn business the most thinks are age, gender, brand loyalty etc.

Limitations ofsupply chain management : Marketing several different products to several different markets results in increased costs for: ďƒ˜ Production and inventory ďƒ˜ Advertising ďƒ˜ Administration

57

TITLE OF THE STUDY Supply chain management Company has given me the topic supply chain management . During the project I have found that there are combination of similarities and dissimilarities.

But I realize that the huge parts of the organizational Realities are similar to the topic. We can say that 97% part of practical Market segmentation is similar to the .

Market Scm : Definition: Market scm is the segmentation of markets into homogenous groups of customers, each of them reacting differently to promotion, communication, pricing and other variables of the marketing mix. Market segments should be formed in that way that differences between buyers within each segment are as small as possible. Thus, every segment can be addressed with an individually targeted marketing mix.

58

Market segmentation is the division of a market into distinct groups of buyers who might require different products or marketing mixes (Kotler et al, 1994). It is the division of a heterogeneous market consisting of buyers with different needs and wants, into homogeneous segments of buyers with similar needs and wants. Therefore, the segments are heterogeneous between (i.e. all the segments are different, eg. one segment all males, one segment all females) themselves, but homogeneous within (eg. within the male segment, all buyers are male; within the female segment, all buyers are female).

Segmentation is important as buyers have unique needs and wants. In segmenting a market, marketers look for broad classes of buyers who differ in their needs. There is no one right way of segmenting markets. A marketer has several bases available to him/her for the segmentation of marke Bases for Segmenting Consumer Markets

ďƒ˜ Geographical scm:Segmenting markets on the basis of geography involves dividing the market into different geographical units, eg. states, regions, countries, where the company pays attention to geographical differences in needs and wants. For example, there may be a greater need for T-shirts in the Northern part of Australia all year round rather than in the Southern part.

ďƒ˜ Demographic scm:Demographic segmentation involves dividing the market into groups based on 59

demographic variables such as age, family size and life cycle, occupation, etc. It is the most popular bases for segmenting consumer markets because consumer needs often vary closely with demographic variables, an also because of the ease of measurement of the variables. Even when other bases are used for segmentation, demographic variables are still used in the description of the segments. For example, you may divide a country into Northern, southern, Eastern and Western regions. But, you may still describe each of the regions in terms of the demographics of the buyers living there eg. age, income, sex, occupation, race, etc.

ďƒ˜ Psychographic scm:Using psychographics to segment markets divides buyers into groups based on socioeconomic status, lifestyle or personality characteristics. Example, dividing the Australian market into leisure-seekers, work-oriented, and family-oriented segments.

ďƒ˜ Behaviour scm:Behaviour segmentation is where buyers are divided into groups based on there product knowledge, usage, attitudes or responses. Within behaviour segmentation, of particular importance is a powerful form of segmentation, benefit segmentation, which groups buyers depending on the various benefits sought by buyers from the product class. For example, you could segment the cereal market based on the benefits sought by cereal buyers: brand (eg. Kellogg's), nutrition and health (eg. Sultana bran), diet (eg. Special K), taste (eg. Cocopops for kids), price 60

(eg. Kellogg's cornflakes), etc.

When it comes to marketing strategies, most people spontaneously think about the 4P (Product, Price, Place, Promotion) – maybe extended by three more Ps for marketing services (People, Processes, Physical Evidence).

Market segmentation and the identification of target markets, however, is an important element of each marketing strategy. They are the basis for determining any particular marketing mix. Literature suggests the following steps: -

61

Criteria for Market Scm 62

There are a huge number of variables that could be used for market segmentation in theory. They comprise easy to determine demographic factors as well as variables on user behavior or customer preferences. In addition, there are differences between private customers and businesses. The following table shows the most important traditional variables for segmentation.

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Consumer Markets

Industrial Markets / Business Markets

Geographic: · Land or region · Rural or metropolitan area

· · · · · · · · ·

Demographic: · Age, sex, marital status · Income, occupation, education · Religion, nationality, ethnical group

Industry Intermediary or final consumer Type of corporation (public or private sector) Size of corporation Geographical location Intensity of product use Organization of purchasing function Centralized or decentralized Purchasing policies, rules and criteria

Psychographic: · Social status · Lifestyle-type · Personal type Behavioral: · Intensity of product use · Brand loyalty · User behaviors

Since customer orientation of organizations is growing, segmentation as the basis for establishing customer relationships and customer loyalty gains 64

importance. In this context, the elements of the loyalty ladder model could be used as segmentation variables: -

The importance of market segmentation results from the fact that the buyers of a product or a service are no homogenous group. Actually, every buyer has individual needs, preferences, resources and behaviors. Since it is virtually impossible to cater for every customer’s individual characteristics, marketers group customers to market segments by variables they have in common. These common characteristics allow developing a standardized 65

marketing mix for all customers in this segment.

Marketers have to choose those variables that are relevant for segmenting the market for a particular product. The basic rule is to focus on a limited number of important variables. To segment the market into too many small, slightly distinct segments would require splitting up the marketing budget into too many ineffective chunks. Such varied marketing activities in the diverse segments could confuse customers and would lead to cannibalization effects.

Kotler mentions five criteria for an effective supply chain management :

ďƒ˜ Measurable: It has to be possible to determine the values of the variables used for supply chain management with justifiable efforts. This is important especially for 66

demographic and geographic variables. For an organization with direct sales (without intermediaries), the own customer database could deliver valuable information on buying behavior (frequency, volume, product groups, mode of payment etc).  Relevant: The size and profit potential of a market segment have to be large enough to economically, justify separate marketing activities for this segment.  Accessible: The segment has to be accessible and servable for the organization. That means, for instance, that there are target-group specific advertising media, as magazines or websites the target audience likes to use.  Distinguishable: The market segments have to be that diverse that they show different reactions to different marketing mixes.  Feasible: It has to be possible to approach each segment with a particular marketing program and to draw advantages from that.

As already stated, segmentation is the basis for developing targeted in addition, effective marketing plans.

A segment-orientated marketing approach generally offers a range of advantages for both, businesses and customers.

 Better serving customers needs and wants It is possible to satisfy a variety of customer needs with a limited 67

product range by using different forms, bundles, incentives and promotional activities. The computer manufacturer Dell, for instance, does not organize its website by product groups (desktops, notebooks, servers, printers etc), but by customer groups (privates, small businesses, large businesses, public/state organizations). They offer the same products to all customer groups. As an example, Dell offers to take on all IT-administration for companies. This service provides a huge potential for savings for corporate customers. However, it would be absolutely useless for private customers. Thus, segment-specific product bundles increase chances for cross selling.

ďƒ˜ Higher Profits It is often difficult to increase prices for the whole market.

Nevertheless, it is possible to develop premium segments in which customers accept a higher price level. Such segments could be distinguished from the mass market by features like additional services, exclusive points of sale, product variations and the like. A typical segment-based price variation is by region. The

68

generally, higher price level in big cities is evidence for this.

When differentiating prices by segments, organizations have to take care that there is no chance for cannibalization between high-priced products with high margins and budget offers in different segments. This risk is the higher, the less distinguished the segments are.

Targeted communication It is necessary to communicate in a segment-specific way even if product features and brand identity are identical in all market segments. Such a targeted communications allows stressing those criteria that are most relevant for each particular segment (e.g. price vs. reliability vs. prestige).

Opportunities for Growth Targeted marketing plans for particular segments allow to individually approach customer groups that otherwise would look out for specialized niche players. By segmenting markets, organizations can create there own ‘niche products’ and thus attract additional customer groups.

Moreover, a segmentation strategy that is based on customer loyalty offers the chance to attract new customers with starter products and to move these 69

customers on to premium products.

Stimulating Innovation An undifferentiated marketing strategy that targets at all customers in the total market necessarily reduces customers’ preferences to the smallest common basis. Segmentations provides information about smaller units in the total market that share particular needs. Only the identification of these needs enables a planned development of new or improved products that better meet the wishes of these customer groups. If a product meets and exceeds a customer’s expectations by adding superior value, the customers normally is willing to pay a higher price for that product.

ďƒ˜ Higher Market Shares In contrast to an undifferentiated marketing strategy, segmentation supports the development of niche strategies. Thus marketing activities can be targeted at highly attractive market segments in the beginning. Market leadership in selected segments improves the competitive position of the whole organization in its relationship with suppliers, channel partners and customers. It strengthens the brand and ensures profitability. On that basis, organizations have better chances to increase their market share in the overall market.

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Sustainable customer relationships in all phases of customer life cycle Customers change their preferences and patterns of behavior over time. Organizations that serve different segments along a customer’s life cycle can guide their customers from stage to stage by always offering them a special solution for their particular needs.

For example, many car manufacturers offer a product range that caters for the needs of all phases of a customer life cycle: first car for early twenty’s, funcar for young professionals, family car for young families, etc. Skin care cosmetics brands often offer special series for babies, teens, normal skin, and elder skin.

Requirements for Effective Segmentation Useful market segments must demonstrate the following characteristics:

The size and purchasing power of the segments must be measurable.

It must be possible to reach and serve the segment.

The segments must be large or profitable enough.

The segments must be suitable for the design of effective marketing mix programs.

How is it different in practically in regards theory 71

I have found that Market Segmentation is partially different. It is not exact as theory. It is well known that suppliers in mass markets mostly compete on price. Demand for those products that are clearly differentiated from competition and that offer a particular value to customers do has a lower price elasticity; hence, only those products can sustain a higher price level and higher margins. The precondition for providing such value added is detailed knowledge about customers’ preferences. These preferences will probably diverse in the total market, but fairly homogenous within distinguishable segments.

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OBJECTIVE OF THE STEDY

Main Objective: Market segmentation is the basis of other marketing actions. It will require a big management effort to direct the strategy to each market niche and also the necessary investigation, implementation and control for realizing a correct segmentation. The main objective of the segmentation is to improve the position of this company and serve better the needs of the clients. We will be able also to increase sales, improve our market share and improve our image. Today's markets are more volatile than before and possibly the traditional 'mass media' advertising focus is no longer appropriate. One option is to focus on different niches of the market where we are able to satisfy their needs and wants. This is possible with market segmentation i.e., dividing the market into groups of potential clients with similar needs and profiles and which present similar buying habits.

Specific Objective: These are the elements which I will need for completion my main objective Product differentiation by preparing appropriate marketing mixes for each market segment. Organize distribution according to buying characteristics.

To better focus media advertising according to habits and lifestyles.

1. Concentrated segment

strategy

(Single-segment

strategy).

One

market

(not the entire market) is served with one marketing mix. A single-segment

73

approach often is the strategy of choice for smaller companies with limited resources.

2. Differentiated strategy (Selective specialization or multiple-segment strategy). Different marketing mixes are offered to different segments. The product itself may or may not be different - in many cases only the promotional message or distribution channels vary.

3. Product specialization. The firm specializes in a particular product and tailors it to different market segments.

4. Market specialization. The firm specializes in serving a particular market segment and offers that segment an array of different products.

5. Full market coverage. The firm attempts to serve the entire market.

This coverage can be achieved by means of either a mass-market strategy in which a single undifferentiated marketing mix is offered to the entire market, or by a differentiated strategy in which a separate marketing mix is offered to each segment.

74

supply chain management Strategies In traditional supply systems, suppliers and manufactures operate rather independently. Suppliers have very little information on what manufactures need until they receive orders from manufactures. Similarly, manufactures do not know what materials are available with suppliers until they place an order and get a corresponding response. The status of information with manufactures as to what is in stock with a multitude of distributors, dealers and retailers is hardly available and if available is seldom reliable. As a matter of fact many manufacturers consider obtaining this information as unwarranted because sale transactions are considered to be completed once stocks reach these channels. Many stockiest also consider disclosure of this type of information of stock as uncalled for as this is confidential. But in an efficient MARKET SCM, manufacturers, suppliers, distribution channels and customers are linked in the form of a chain to develop and deliver products as a single organization of pooled skills and resources. The process of linkages amongst the participants is the most significant factor. Higher the integration process, greater is the success of a MARKET SCM. The integration can have three forms:

•

INFORMATION INTEGRATION

•

DECISION INTEGRATION

•

FINANCIAL INTEGRATION

INFORMATION INTEGRATION

Information plays the most crucial role in integration. The participants share confidential and critical information. In a well implemented system the participants are aware of the stocks, demands, and the availability of supplies at all times. The supplier knows what the manufacturer needs and the

manufacturer

knows

the

stock

and

needs

of

the

distribution channels. Information Technology is playing an important role in linking. Electronic Data Interchange has been successfully tried. But the real breakthrough has come 75

from

advanced

Resources (PEA). day-

computer

Planning

ERP

to-

for day

(ERP)

Example, tasks,

software and

as

Planning

organizes

such

Enterprise

as

Engine

and

(level)

Application

interconnects

entering

orders,

most

tracking

product shipments, scheduling production and updating sales forecasts and balance sheets. Planning and implementation of information systems can also help to analyze product flows, order

patterns,

inventories,

obsolescence,

levels

of

production and supply costs.

DECISION INTEGRATION If

the

various

participants

of

the

supply

chain

system

operate as one congruent whole, demands of integration call for a joint decision- making exercise. The participants are expected

to

meet

at

frequent

intervals

to

take

a

joint

decision on issues such as inventories, distribution, tradeoffs to strike a balance between contradictions and even pricing policies. The entire supply chain system would be behaving as if it were one single company. This task is however, not easy to achieve as human element is involved and

consensus

resistance integration

decisions

only

signify

the

path

minimum

risk

involvement.

The

and also

implies

that

a

participant

of

least

decision-

will

have

a

right to exercise controls on operational activities of the other participants and raise voice of discontent in case the operations are contrary to decisions already made.

76

FINANCIAL INTEGRATION Financial integration implies that each of the participants has a financial stake in operations of other participants. Suppliers, for example can be equity holders in the venture of the manufacturers and manufacturers extend their financial participation to the distribution channels. With this arrangement the participants become a part of one set- up and tend to work towards achievement of objectives which become common goals. Each participant becomes dependent on the other and the right functioning of the system id the common concern. Failure of one participant brings an immediate response from other participants to correct the situation. Fear of failure binds the participants and keeps them together. This is no doubt one of the strongest integrations, but has been rarely practiced except in large set ups where financial participation is otherwise necessary for business survival.

77

Cotton Procurement is decided collectively by EP(Plant Head) and Company Advisor seat at other unit

The purchaser send a cotton purchase advice to HOD-Raw Material Purchase /Plant head, confirming the deals he has made

Raw Material Procurement Process

The HOD takes a print out of the cotton purchase advice and hands it over to the Raw Materials Assistant

The details of the deal are updated in the PO register by a Raw MaterialsAssistant and then are fed into the Computer by HOD-Raw Materials

Goods arrive at the unit and the security guard informs the Raw Materials Assistant. The Raw Materials Assistant arrives at the gate and verified the invoice against the dispatch information give by the HOD.

The security guard then registers the details, generates a gate Entry No. Puts the received stamp on the invoice, mentions the gate entry no. on it and send the truck for Weight.

The consignment is weighed at the weight bridge located near the factory gate and a weight slip is generated showing the gross, tare and net weight and then the goods are forwarded to godown.

The godown keeper then hands over the invoice along with the weighing slip to the Bill Passing clerk/Assistant who verifies the details of the invoice and then passes the bill by entering the details in the computer system.

78 END

Raw Material Receipt Process

Requirement of Raw Materials is fixed in the Monthly Budget Total requirement sent by purchase-Raw Materials Department HOD to Mumbai office The HOD-Raw Materials Purchases after sending the monthly requirement requests dispatches on a day-to-day basis depending upon the requirement.

Day-to-day dispatch requirements are conveyed to Mumbai office

After confirmation from Mumbai office HOD informs godown keeper for the dispatches.

Goods arrive at the unit and Raw material assistant informs the godown keeper.

Godown keeper come to the main gate and verfies the invoice against the dispatch information given by HOD.

END

79

PRODUCTION PROCESS

FLOW CHART SYNTHETIC For Dyeing

FIBRE GODOWN

DYE HOUSE MIXING

Fiber are processed to mix properly to produce cards

Blow Room

Combing Equipments are used to clean the natural cotton and to produce slivers for further process

Waste Collecti on System s Combing Equipme nt

Cardin g

Drawin g Simpl ex

To collect the waste of Fiber, short fibers, dust and dirt, which extracts from various spinning machinery

Cards are processed to produce slivers

Slivers are further processed to produce more refined slivers Fiber are transferred in to bobbins, by twisting slivers

80

RING FRAME AUTO CONOR CHEESE WINDIN G

TFO

Yarn bobbins are winded on cones for single ply yarn yarn Yarns of single ply

Single ply yarn cones are winded for double ply yarn

Air

Packing

Double ply yarn further processed to produce final twisted double ply yarn

81

FLOW CHART (COTTON)

COTTON FIBRE GODOWN

BALE PLUCKING MACHINE

BLOW-ROOM (CONTAMINATI ON DOXING MACHINE) CARDING

Quality wise cotton fiber lyeing in go-down e.g. J-34, S-6 and H-4 Open the cotton from different cotton bales and send it to BlowRoom To clean the cotton, open the fiber & remove contamination and foreign particles.

Fibers are processed to produce card slivers.

Card slivers are further processed to produce parallel & refined slivers.

DRAW FRAME LDO-6 LAP FORMER (FOR COMBED YARN) COMBER MACHINE DRAWFRAME (RSB) SIMPLEX RING FRAME AUTO CONOR PACKING HOUSE

Card sliver are processed to produce laps.

Laps are transferred into sliver. it comb and remove short fiber known as comber noil.

LDO-6/Comber sliver further processes to produce more parlel sliver.

Fibers are transferred into roving, by twisting slivers.

In this process, roving is converted into yarn and wounded into bobbins.

Yarn bobbins are winded into cones for single ply yarn.

Pack the quality wise yarn.

82

RAW MATERIAL Received bales from manufacturer.

DYEING Colouring of the Grey/White Fibre to different colours using different dyes & chemicals in high temperature, high pressure Dyeing machines.

MIXING BALE OPENER To open the baled fibre into small tuffs and mix different component for mixing of material so as to give a homogenous blending and removal of foreign matter to be separated from the fibres as well as to prepare the material for further process.

BLOW ROOM Blow Room is used for the process of opening, mixing and cleaning cotton. The Raw Material (Cotton) is feeded as start of process. After cleaning the cotton goes to carding machines for further.

CARDING MACHINES & COMBER The

carding process takes place on Carding machines. The process is includes individualization of fibres, removal of napes and delivering the material in shape of sliver for further processing.

DRAWING The drawing process takes place of Draw Frames. The process includes paralisation of fibres and giving more uniformity. In the process a number of slivers are feeded from one and it produce uniform sliver ready for next process.

SPEED FRAME It is an intermediate process between Ring Frame and Draw Frame at this Frame Drafting and Twisting of Sliver is done to get required roving to feed next process Ring Frame.

RING FRAME The main object of Ring Frame is Drafting, Twisting and Winding. The draw out the roving by means of rollers to Twist the yarn by traveler round a ring and to wind the twisted yarn on to a bobbin. The yarn is wound on bobbin placed on spindles and produced require yarn count.

83

WINDING The process of winding should be considered as an integral part of the spinning process. To built the suitable package in form of cones from Ring Frame Bobbins. All type of faults like slubs, fluffs, fly which are generated during spinning process. The faults can be removed on winding machine by using electronically yarn clearer.

CHEESE WINDING Cheese Winding machine is used to make two or three ply yarn as per market requirement to build a suitable package form of cheese for TFO or Ring Doubling.

RING DOUBLING This machine used for Double Yarn Processing to achieve maximum tenancity strength elongation. Lusture etc. This machine minimize the imperfection of yarn by insertion of twist.

TFO This machine means Two for One and also used for Double Yarn Process, but some difference than R/D like twisting and Winding can be done at a same time.

DOUBLE WINDING This

machine to make a big package in the form of cone from Doubling Bobbins. The yarn of cone is packed as final product.

84

SPINNING PROCESS Raw

Material – Polyester, Viscose, Acrylic and Cotton Fiber.

Process Flow

1) Raw Material is blended and open at Blender stage; 2) Then it is processed to Blow Room Line/Aero Feed for further opening and material transferring to Combing/Carding Department;

3) In Combing/Carding Department. It is cleaned and converted into sliver;

4) Sliver is further uniformed by Draw Frame; 5) Then it is converted to roving in Simplex Department; 6) Finally it is converted to Ring Yarn; 7) Ring yarn is cleaned and converted into Cone Package in Autoconer/ Winding;

8) According to requirement it is converted into Ply at Cheese Winding;

9) Then it is finally twisted and converted into ply yarn at TFO/Ring doubling suitable package.

85

DYEING PROCESS 

Fiber



Filling in Fiber Carrier with Soft Water.



Fiber carrier to load in Dyeing Machine



Heating with Steam Adding Dyes for Dyeing Process and rise temp. upto 130°C



for August Hours. 

Cooling of Fiber



Wasting of Fiber



Drying of Dyed Fiber



Ready for Spinning Process

86

LIMITATION OF THE SYUDY Though I have tried my level best to make the study and the report writing qualitative and excellent, the following limitation overcome in the study  BTM has a huge market national and international level, which has sold lots of products, but this study is limited to Baddi only.  BTM has no direct contact with the customers.  The time period allotted for the study i.e. 2 months is a short period for completing this type of activities.  The accuracy of the project and conclusion is totally depending on the accuracy of the data collected and analyzed  The result is not same for all reason

87

4 FACTS AND FINDINGS

I have observed that the position of company is good. The company has very well situation. According to working results for the year ended 31 March 2005 company’s position is following: -

PARTICULARS

2006-07

2007-08

(A) Polyester Cotton (B) 100% Cotton/Melange Yarn

852 3820

187 4114

Total

4677

4301

(A) Domestic (B) Export

434.07 329.54

421.87 249.68

Total

763.61

671.55

Profit after Tax (Rs. in crore)

18.41

18.45

Yarns (Qty. in Tons)

Turnover (Rs. in crore)

88

RAJASTHAN SPINNING & WEAVING MILLS LIMITED (MANDAPAM) BALANCE SHEET AS ON 31:03:2006 (UNAUDITED) (Rs in Lacs) SCHEDULE 31.03.2008 31.03.2007 SOURCES OF FUNDS:Shareholders’ Funds Share capital 1 00 00 Reserve & Surplus 2 4079.68 4125.37 Loan Funds 3 Secured Loans 7606.63 7447.18 Unsecured Loans 9.43 10.83 Deferred Tax Liability 4 00 00 GRAND TOTAL 11695.74 11583.38 APPLICATION OF FUNDS:Fixed Assets Gross Block Less: Depreciation & Amortization Net Block Capital Work in Progress INVESTMENTS

5

6

CURRENT ASSETS, LOANS & 7 ADVANCES Inventories Sundry Debtors Cash & Bank Balances Other Current Assets Loans & Advances TOTAL Less: Current Liabilities & Provisions 8 Liabilities Provisions TOTAL Inter Unit Balances NET CURRENT ASSETS MISCELLANEOUS EXPENDITURE 9 (To the extent not written off & adjusted)

12499.35 5058.59 7440.76 24.03

9065.55 4278.33 4787.22 2596.43

00

00

1610.09 1416.68 7.19 785.38 141.06 3960.40

1873.26 645.71 70.24 410.27 245.07 3244.55

376.40 31.75 3552.25

310.57 28.69 2905.29

658.70 4210.95

1255.97 4161.26

20.00

38.47 89

GRAND TOTAL

11695.74

11583.38

INDIA’S TRADE IN TEXTILS Type

India's Share in World Trade

Yarn Fabrics Apparel Made-ups

22% 3.2% 2% 9%

Over-all

2.8%

Compound Annual Growth Rate (CAGR) of different segments Type

CAGR (1993-98)

Yarn Fabric Made-ups Garment

31.79% 9.04% 15.18% 6.795%

TOP 10 EXPORTERS (TEXTILES) 90

Country

2006 Billion US$ % share

2007 Billion US$ % share

Hong Kong China South Korea Germany Italy Taiwan INDIA France Belgium-

7.99 7.10 6.04 14.00 9.80 6.13 5.03 7.21

7.68 6.82 5.81 13.46 9.43 5.90 4.83 4.65

14.6 13.83 13.35 13.05 12.9 12.73 9.19 5.86

9.42 8.92 8.61 8.42 8.32 8.21 5.93

Luxembourg Japan Total (Top 10) World

6.54 5.88 74.36 104.00

6.29 5.65 71.5 100.00

7.01 6.75 110.62 155.00

4.52 4.35 71.37 100.00

5.64

Top Ten Suppliers of MFA Clothing: Rank Price (AGR 2006-2007)

2006

2007

Ranks and Average Price

Ranks and Average Price

Rank Price CAGR 2005-06 91

Country

Rank in Value

Rank in Volume

Avg. Price, Ecu/Kg

Rank in Value

Rank in Volume

Avg. Price, Ecu/Kg

China

2

1

9

1

1

8

3

Turkey

1

2

2

2

2

6

7

Hong Kong

3

3

6

3

3

5

9

Tunisia

4

7

3

4

6

3

4

Morocco

5

6

5

5

7

4

2

Poland

6

8

2

6

8

1

8

India

7

5

7

7

5

9

10

Bangladesh

8

4

10

8

4

10

5

Romania

9

10

4

9

10

2

1

Indonesia

10

9

8

10

9

7

6

5 ANALYSIS AND INTERPRETATION

92

(A) Turnover (Rs. in crore)

900 800 700 600 500 400 300 200 100 0

330

250

330 Exports Domestic

163 434

200405

321

200506

422

434

200607

200708

93

(B) Yarn Production (in tonnes)

60000

52730

52730

48473

50000 40000

37060

30000

Yarns

20000 10000 0

2004-05 2005-06 2006-07 2007-08

94

(C) Yarn Sales (in tonnes)

5000

200506

200607

26341 26842

10000

27978

15000

20498

20000

12828 20291

25000

26341 26842

30000

Exports Domestic

0 200405

200708

Observation 95

I have found that Market Segmentation is the process that segments a market into smaller sub-markets called segments. Segments are homogeneous within and desirably heterogeneous in between. The rationale of intra-group homogeneity is that people with similar attributes are likely to respond somewhat similarly to a given marketing strategy. So that they can develop special marketing strategies for particular segments. Segmentation is normally performed along with demographic, geographic, psychographic, and behavioral variables.

My observation in this project that they don’t have any problem in Market Segmentation. They have marketing offices in Mumbai, Tirpur, Bhilwara, Delhi, Kolkata, Banglore, Ludhiana. These are the cities, which cover all over India’s market.

Analysis I have used the technique name Choose the Bases of Segmentation.

In this technique I have found that the Melange Yarn make for special type of clothes. It is basically used for T-Shirts and Hosiery. So the demand of this product is depend on consumer’s need. According today’s trend customer wants the cloths in their life style or according to their age. So there is no need to more approach the consumers. Because Mandapam unit makes Melange Yarn, Grey Yarn & Dyed yarn.

To make clothes is the work of unit’s customers, which are allocated 96

in the each corner of India. It is duty of them to sale the cloths. Unit has to approach only the cloth manufacturer. The products are in demand due to less manufacturer of Melange Yarn.

Company has very good transport facility in Bhilwara, which provide excellent service. Following are the name which deliver the product to all corner of India.

Transport  Jain Transport  Ajit Freight  Om Logistics  Gill Sandhu  Globe Transport  Srinath Kargo  First Flight Courier

Destinations Jaipur and Delhi Tirpur and Ludhiana Banglore Delhi and Kolkata Mumbai and Banglore Loose and Urgent Goods (all offices) Loose and Urgent Goods (all offices)

Markets consist of buyers who differ in there: •Wants •Resources (time and money) •Locations •Buying attitudes •Buying behaviors

97

6 SWOT ANALYSIS: Business firms undertake SWOT Analysis to understand the external and internal environment. SWOT is the acronym for strengths, weaknesses, opportunities and threats. Through such an analysis, the strengths & weaknesses existing within an organization can be matched with the opportunities and threats operating in the environment so that an effective strategy can be formulated.

Strengths are special attributes or distinctive competencies that an organization posses, which give it an advantage over other organization, especially competitors.

The analysis of weaknesses is also internal & again can only be conducted in relative terms; weaknesses are the aspects of organization that makes them less effective than other companies. Once again, care must be taken with the application of this idea.

Opportunities and threats are external to the company. An opportunity is any chance to follow a new or revised strategy that could benefit the organization. An opportunity represents new initiatives & potential. While they exist for all organization they are certainly easier to identify for some, than for others.

Identification of threats and opportunities in the environment and the strengths and weaknesses of the firm is the corner stone of business policy formulation; these are those factors, which determine the courses of action to ensure the survival and/or growth of the firm.

SWOT ANALYSIS FOR MANDPAM RSWM

98

STRENGTHS: 

ESTABLISHED BRAND NAME



MAXIMUM MARKET CONTROL



AUTONOMY IN DECISION MAKING



EXTENSIVE MARKETING AND PROCUREMENT NETWORK



PRODUCTS PRICED REASONABLY



QUALIFIED MANPOWER



HIGH GARMANT PRODUCTION AND MARKETING POTENTIAL EASY AVAILABILITY OF GARMANTS FROM COOPERATIVES



OTHER

WEAKNESSES: 

HIGH FIXED COSTS



HIGH INTERUNIT GARMANT PURCHASE PRICE



HIGH COMPITION



CONSUMERS CARRYING PROCESSSED GARMANT

NEGATIVE

PERCEPTION

ABOUT

OPPORTUNITIES: 99



CAPACITY OF MARKET GROWTH



INSIGNIFICANT COMPETITION FROM ORGANISED SECTOR



SCOPE FOR PREMIUM PRODUCTS



VAST UNTAPPED RURAL MARKET



SCOPE FOR FURTHER IMPROVEMENT IN QUALITY



SCOPE FOR PRODUCT DIVESIFICATION



CHANGING LIFESTYLE AND HABITS

THREATS: 

HIGH COMPITION IN GARMANT INDUSTRY

7 Conclusions

100

•

Analysis of data reveals that climate of the organization is considerate, warm & supportive.

•

63% of the respondents agree that they help one another and have concern for each other.

•

59% of the employees agree that adequate information is provide to them relating to their task which reflects the effective communication .

A very few number of respondents are uncertain out to towards the communication gap existing in the organization.

•

About 80% of the respondents feel that supervisors notice and appreciate a job well done; they take interest in juniors and provide periodic feedback to them. This shows that supervisors are more concerned in maintaining good relations with their juniors.

•

90% of the respondents have co-operation and trust among them. This shows that majority of the employee have positive expectation that other will not act opportunistically and take advantage of them.

•

Employees are allowed to experiment with new ideas an management respondents is also positive.

•

74% of the respondents are satisfied with working condition provided to the employee are safe, health & pleasant.

•

68% of employees says that managers with reactive ideas are always appreciated in this company.

8 RECOMMENDATION AND SUGGESITION

101

Superior should focus in helping their subordinate to improve personnel skills and chance of advancement .they should try to maintain good relationship with their subordinate.  •

To induce delegation following steps should be taken by top management.

Indicate that the development of subordinates is an important task which will be canted in managerial performance.

•

Creating an atmosphere of tolerance towards errors if they result through delegation and contribute to subordinate development.

•

Inducing a sense of security for individual managers by periodic counseling and evaluating managerial performance.



Their should be an interdepartmental meet once in a month to build trust among the employees.



A staff meet should be organized either once in a month or once in two month . it creates an enviourment of openness and built trust among the employee and the top management.



Communication is very important in function and survival of the organization .face-lifting a two way communication downward and upward supplemented with feedback can work out wonders.



Management expectation from the workers should be communicated to the workers so that they can they can identify with organization mission. The faculty of communication ideas, opinions, suggestion and grievance to the supervisor should be provided to the workers so that they feel free in expressing themselves .this also incites a feeling of belongings among them.



Their frank opinion and individual views shall be kept secret and will be used only to derive result to survey and for and personnel grudges.



Finally, I would like to recommended the top management the before conducting and survey they should give their assurance to all the employee that they will not .

SUGGESTIONS FOR IMPROVEMENT

102

 Advertise about the company and its products – it motivates individuals to purchase insurance  Create a positive perception about insurance  Speak about the good features a plan offers like high returns, life cover, tax benefits, indexation, accident cover while prospecting customers  Try to sell the product/plan which the consumer requires and not the plan where the advisors benefit is higher  Improve the efficiency in operations  Bring out policies with small premiums payable for short periods of time – Rs. 5000 – Rs. 10000 per annum for 10 years  Attract the youth of India with higher returns on investment as returns are the motivating factor which influence purchase of insurance  Promote insurance in colleges and corporate houses  Promote HDFC SLIC as an Indian Company to build trust  HDFC SLIC could have a brand ambassador or a mascot to promote its services  Should have partial withdrawals from the first year onwards  Tap the rural market where there is large potential  Diversify product portfolio  Make products more straight forward – reduce complexities

RECOMMENDATIONS AND SUGGESTIONS

103

How to get the competitive advantage and increase the market share?  Increase the advertising budget and its frequency.  Improvise upon the service qualities.  Provide and adopt such policies from which customers get maximum benefit.  Reorganize the efforts and target the right customers.  Increase the customer awareness about the product.  Increase the distribution network.  Approach the customer and market as well at a correct point of time.  Introduce more advancement in the technology.  Provide a proper training to the workforce.

INCREASE THE ADVERTISING BUDGET & FREQUENCY OF ADVERTISING Advertising is the means of providing the most persuasive possible selling message to the right prospects. Or in simple words, advertising is a paid form of non-personal presentation of goods or services by and identified sponsor to reach out to maximum number of audiences BENEFITS OF ADVERTISING  Advertisements create awareness, interest and desire for products and services in customers to buy them.  It creates knowledge about the products and services provided by the service providers.  It helps the customers in learning about the products, and services and helps in understanding the features of the products and services.  It helps the customers in setting up the preferences about choosing up the service provider as well as the service to be consumed.  It provokes the customers to consume the services and products of the company.

It has been noticed that people purchase the products more of those companies, which give heavy advertising, thus it helps in purchasing the products.

IMPROVISE THE SERVICE QUALITY

104

Recent years have been drastic changes in the market people have seen shifting of emphasis on the mantra of enhancing values to the customers and enhancing shareholders value. However, while profits can certainly be enhanced in the short term by a vigorous effort to reduce expenses, there can be no creation of value for the shareholders in the long term unless value to first created for customers. And no business can hope to sustain such a revenue stream unless it is successful in attracting and retaining customers who are willing to purchase its services at prices that are collectively cover all the costs and leave an appropriate margin foe profits and needed reinvestments.

OPERATIONS MANAGEMENT

MARKETING MANAGEMENT

CUSTOMER S

FINANCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

“CUSTOMER IS A KING OF THE MARKET”

105

POSITIONING IS THE “BUZZ WORD”Competitive positioning strategy is based on establishing and maintaining a distinctive place in the market for an organization and/or its individual product offerings.

The essences of positioning are into following four steps: (1) A company must establish a position in the minds of its target customers.

(2) The position should by singular, providing one simple and consistent message.

(3) The position must set a company apart from its competitors.

(4) A company cannot provide all things to all people; it must focus its effort.

INCREASE THE CUSTOMER AWARENESSWhile working on the project I came to know that people are not well know about the BAJAJ ALLIANZ life insurance therefore it is necessary for BAJAJ ALLIANZ life insurance company ltd. to create distinct image in the mind of the customers and they should also make aware the customers about the products and services it is offering.

Company’s presented brand

Brand awareness

External brand communication

Customer experience with company

Brand equity

Brand meaning

“CREATING THE BRAND AWARENESS”

INDUCTION OF TECHNOLOGY ADVANCEMENT:-

106

Business owns a dynamic spectrum it is called to be dynamic because the market environment is ever changing it never stops changing, and now when we talks about the IT sector it is growing day by day which helps the function to work smoothly and fast.

Therefore keeping this thing in mind BAJAJ ALLIANZ life insurance should also keep an eye on the available options which it can afford, and which enhances the services quality, for example right now with the help of home banking and phone banking persons can place the order to pay or for transfer the fund but some times it become risky if the phone got interconnected with other, so for avoiding such situations BAJAJ ALLIANZ life insurance can use electronic voice mail box with the help of which the customer can transfer his/her fund in other account just by using few keys of the telephone instrument.

Major Findings 107

Following are the things which have come into picture after studying and analyzing the investment pattern of the clients: 

LIC is the favorite insurance partner of the clients: Well this is just like stating the universal fact and nothing needs to be said about it. LIC still is the name or the brand which has maximum trust in the mind of the Indians. But what I can add to this is the reason for which clients are mainly going for the LIC. Following are the reasons which I feel about people having the bent of mind for the LIC: o

Trust built in all these years.

o

Client’s negative perception about the private insurance players.

o

Clients are continuing their policies from the time when no private player was present so this makes LIC the undisputed leader.

o

Agent base of LIC is really too vast to even compare it with any other life insurance player.

o

Mindset of the clients is such that they take LIC synonymous to the life insurance product.

o

Majority of clients feel private players synonymous to the mutual funds as most of their product are related to the investment in the markets and thereby having more risks.

o

Lack of full information or knowledge about the actual private offerings.



Nationalized banks are the more preferred to the private ones: This is another fact which has emerged during the project. It is something which again has various reasons attached to it: o

Lack of availability of the private banks in the industrial areas

o

No advances provided to the clients for investment in their own business or in the raw material, but they mainly provide advances for the investment in the financial markets which results in less clientele.

o

Many additional services are provided to clients by nationalized banks like DD commission etc. which help these clients to stick with these public banks.

o

Too many formalities are needed to deal with the private banks.

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9 Appendix This report, The Value of Information and Information Services, documents how information services help transportation agencies to operate more efficiently and effectively. It shows that the value of information can be measured in terms of reduced costs for research, development, and operations; time savings and quicker implementation of innovations; more effective decision making; and the satisfaction of management and users.

However, while information services are valuable to transportation agencies, this report also identifies a number of areas where existing information sources need to be improved. It recommends that FHWA and its partners 1) take the lead in building consensus on information issues and developing a national policy on transportation information; 2) develop a national marketing plan to raise awareness of the value of information, educate management on the need for information services, and promote information programs in transportation agencies; and 3) develop a comprehensive model of transportation information resources and programs. This appendix outlines an approach for the second recommendation, the development of a national information marketing plan. With the assistance of the technical panel, and in consultation with its partners, FHWA will employ this approach in developing appropriate tools to promote information services in transportation organizations.

Within the transportation community, there are a number of different customers for information services. For the purposes of this report, there are four target audiences for a marketing strategy: administrative management, research and development management, professional staff, and information specialists. In marketing to each audience, there are two major themes: 1) the value of information and 2) the value of information programs and services .

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10 Bibliography Come September 2008 and, the grand patriarch of the rswm clan, will hang up his boots, going by his corporate planning.

“I have told my staff that I am making all my corporate planning for only the next 18 months. Let’s stick to that schedule, and after that we could chalk out our plans subsequently,” told FE when he was asked whether he is retiring any time soon.

Born in 1921 in Calcutta, 11 years after his father Grantham s.p.jain migrated from Pilani, Basant-babu celebrated his 86 th birthday on February 4.

When the octogenarian industrialist retires from active involvement in running his empire, it will be a watershed in India Inc, the passing of an era, or the birth of another one, marked by an event of perhaps equal importance. And that is, grandson foray into cross-border takeovers with the purchase of aluminum major Novelist.

On occasion, Rswm has been hinting at his retirement. Last year, in June, while addressing the shareholders of Kesoram Industries, he had indicated that he would like to step down two years hence.

This time the occasion was the release of an authorized joint biography of BK and his wife 'One Day at a Time’ has been written by Ingrid Albuquerque Solomon.

When asked how he would like to spend his life post-retirement, Rswm replied: “Well, I have to begin by cutting down my working hours. Every day, I come to the office at 9am and leave at 4pm. My family members have been requesting me to cut it down further. Lets see.”

In 1936, a young BK, all of 15 years, became an industrialist on his own, setting up Kumar Chemical Works with Rs 1,250 he earned from “fatka satta”.

Though that perfume making unit does not exist anymore, 71 years later Rswm oversees operations of 20 companies including Kesoram Industries, Jay Shree Tea & Industries, Century Enka and Century Textile to name a few and operating in sectors like cement, tea, rayon, paper, shipping and textiles. Today, just six of his top companies have a combined market cap of Rs 6,987 crore.

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The biotechnology policy of Rajasthan aims to contribute to this

revolution by creating an enabling environment •

Positioning the state as an attractive destination for the development and growth of biotechnology industries.

• •

Create and continuously upgrade biotechnology infrastructure through government and / or public–private partnership.

Create and develop trained human resources in biotechnology.

• Spread awareness among entrepreneurs, corporates and industries about the investment opportunities in different sectors of biotechnology.

• Outline a set of incentives and concessions for biotechnology industry to attract investment.

• Developing a world-class higher education and research base to serve the needs of growing Biotechnology industry and for creating high quality employment.

References

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 Web sites:  www.rajasthanspg.com  www.lanjbhilwara.com  www.google.com  www.buseco.monash.edu.au

 Books:  Marketing Management (Kotler & Keller- 12 th edition )  Principles of Marketing (Philip Kotler & Gary Armstrong- 10 th edition)

 Journals:  A Broader Perspective (Annual Report 2004-2005 of RSWM)  Company Profile (Annually-2006 )  News (Vol. XI, Jan-Mar 2006)

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