A

ON

Prepared By Guided By
Rupareliya Mahesh.R Pro.Dina Kanani

College
H.N.Shukla , Rajkot.

Submitted To
Saurashtra University Rajkot

1
COLLEGE - H.N,Shukla

ACADEMIC YEAR - 2008-09

SEMESTER - S.Y.B.B.A.

SUBMITTED TO - SAURASHTRA UNIVERSITY,

RAJKOT

GUIDED BY - Pro.Dina Kanani

2
 PREFACE

With the turn of century expert knowledge and

specialized technologies will become part of our day to day life, that
will further increased the need of practical knowledge in educational
to enter into actual world.
B.B.A. is a two year full professional degree course. It is
interesting to not that B.B.A. includes practical aspects of students
as well as theoretical portion. This is what makes it different then
other routine courses.
In this course, we have special of practical training by
Saurashtra University. The objective of practical training of B.B.A.
is to develop among the student the awareness about the industrial
environment and business practices.
The project work undertaken is of KICH
MARKETING PVT.LTD; Situated at Yogeswar Main Road,
Atika, Dhebar Road (south), Rajkot-360 002 (India) Engaged in
manufacturing of Stainless Architectural Products.

3
 ACKNOWLEDGEMENT

I would to like to thanks Mr. DINESHBHAI

HAPANI who had given permission to me for preparing project
report and also given information and extra guidance in their field.
I would like to express my feeling of gratitude to
director of H.N.Shukla who had given me permission for preparing
the report.
I am extra guidance for the whole training programmed
and I also express thanks to my parents and my friends for providing
me necessary helps and deep encouragement.
At last but not least I was also thankful to all the person
of KICH MARKETING PVT.LTD. And especially thanks to staff
member of the company for their help and guidance for preparation
of this project report.

4
 DECLARATION

I the undersigned RUPARELIYA MAHESH a student

of B.B.A here by declare that the project work presented in this
reports is my own work and has been carried out under the
supervision on Lec.DINA KANANI OF H.N.SHUKLA
RAJKOT. This work has not been previously submitted to any
other university for any examination.

DATE: SIGNATURE

PLACE: RAJKOT (RUPARELIYA MAHESH)

INDEX

5
SR. PARTICULARS PAGE
NO. NO.

1. GENERAL INFORMATION

2. PRODUCTION DEPARTMENT

3. MARKETING DEPARTMENT

4. PERSONNEL DEPARTMENT

5. FINANCE DEPARTMENT

6. FUTURE PLANS

7. SUGGESTIONS

8. CONCLUSION

9. BIBLIOGRAPHY

6
THE
GENERAL
INFORMATION

GENERAL INFORMATION

7
SR. PARTICULARS PAGE
NO. NO.

1. INTRODUCTION

2. PORTFOLIO

3. AWARD & RECOGNITION

3. SIZE OF UNIT

4. FORMS OF ORGANISATION

5. TIME KEEPING SYSTEM

6. ORGANISATIONAL STRUCTURE

7. ORGANISATIONAL CHART

8. PLANT LOCATION

INTRODUCTION

8
 KICH is the name that represents Premium Quality,
Excellent Services and a Commitment for Life. KICH was born as a
thought by Shri Chimanbhai Hapani, a born craftsman and an
innovative industrialist from Rajkot (India).

In 1992, the thought became a reality with the inception

of KICH as an Export Oriented Unit when the First architectural
hardware item was developed. The vision was to touch pinnacle of
business and a determination to step into global market. The product
was confirming best raw material-high grade AISI 316 Stainless
Steel, highest technical standards and unique finish.

The Success accelerated progress of KICH to its fullest

capacity lead by Shri Chimanbhai Hapani & his three sons;
Mr.Dinesh Hapani has specialised in overseas market while
Mr.Nitin Hapani has excelled himself in manufacturing and product
development. Today, Mr.Bharat Hapani efficiently runs the firm
Kich Marketing Pvt.Ltd. with his vast experience and immense
market knowledge.

In 1998 Ms. Chetna Misty, an Interior Designer, under

the able guidance of her husband Mr. Jagdish Mistry, a prominent
Architect started their association with the KICH Group by
providing marketing and before & after sales services of
internationally acclaimed KICH products to domestic market under
the banner of NEKI Corporation. The joint efforts from KICH-
NEKI rapidly developed a strong marketing network including
highly skilled Marketing Executives; own Product Display Centers
and a chain of Exclusive Dealers across the India.

Apart from achieving many designer and excellence

award, KICH is proud of being the First to obtain highly prestigious

9
 National Award for the Best Quality Products. Today, KICH is
undisputed leader in developing and supplying Premium range
Architectural Hardware products. KICH products are highly
recommended by prominent Architects, Interior-Designers, and
Construction Groups etc. for their prestigious projects all over the
world. KICH is the preferred choice for residential clients as well as
diverse Industrial Sectors covering Aviation, Education,
Entertainment, Finance, Health Care, Hospitality, Information
Technology, Media-Publication and many other Corporate Groups.

The wide range of KICH products includes Mortice

Handles, Mortice Locks and Pin Cylinders, Pull Handles, Door
Hinges, Furniture Fittings, Handrail & Balustrade system, Bathroom
accessories, etc. along with many more custom made products,
developed from Anti-corrosive High Grade AISI 316 Stainless Steel.

PORTFOLIO

Name of the company - KICH MARKETING PVT. LTD.

10
Address - Yogeswar Main Road, Dhebar Road
Rajkot-360002 (India)
Tel. No. - (0281)3290316 / 17 , 2368121
Fax: 91-281-2361602
Chairman - Shri Chimanbhai Hapani
Director - Shri Bharatbhai Hapani, Shri Nitinbhai Hapani
Date of Incorporation - 17th August,2004
Bankers - Corporation Bank
Auditors - Bhansali Associate-Rajkot
E-mail - [email protected]
Website - www.kichindia.com
Weekly off - Monday
Weekly hours - 8 hours (ONE SHIFT)
Working Days - 300 days
Shifts - 8:30AM To 12:30PM
2:00PM To 8:00PM
Accounting Year - 1st April to 31st March
Size of unit - Medium Scale
Mission & Vision - Continues to serve you in your aspiration
through our marketing team aptly supported
by our dealer network all across the country.

Awards & recognition

11
 NATIONAL AWARD FOR
BEST QUALITY PRODUCTS

The Undisputed Leader for Quality Products…

Shri Chimanbhai Hapani (Founder) receiving

NATIONAL AWARD for BEST QUALITY from His
Excellency, President of India,
Dr. A.P.J. Abdul Kalam on 28-10-2005 at New Delhi.

Global Presence - Our Hard Earned International Reputation

12
1. FIRA Membership:
Membership of FIRA (Furniture Industry Research
Association U.K.) is a matter of pride for any such industry.
Membership is given only after passing through the strict
scrutiny and after passing through the stringent criteria. It is an
achievement to have this highly honoured membership. It
ensures the support of FIRA in terms of specialist technical
information and guidelines on how to ensure product
compliance.
KICH takes additional pride to be the “First Indian Supplier of
hardware for the furniture industries”, that has succeeded to be
the member of FIRA.

2. ISO 9001:2000 Certification

Besides being the 'First' to achieve the membership of FIRA,
KICH is also the FIRST to acquire ISO 9001: 2000
certification for manufacturing and supply of Architectural
Products to Domestic and International market. The
certification is done by a prominent German Agency.

13
3. INDIA ENGINEERING CENTRE - Chicago (U.S.A.):

Proudly, KICH is the only company supplying Architectural

Hardware Products selected to showcase its products at
permanent display centre of India Engineering Centre-
Chicago (U.S.A.).

4. PRODUCT TESTING & CERTIFICATION:

KICH is proud to have its various architectural products
successfully tested and certified by world's leading
organizations-Bodycote and Warrington APT lab against
recognized mechanical and fire testing standards.

Bodycote Testing Group is the world's largest and most

respected provider of independent testing services, operating
over 300 laboratories in 30 countries. The Group offers a very
diverse range of material testing and advisory services to
Construction sector and a wide range of industries i.e.
Hospitality, Health care, Housing, Entertainment, Aerospace,
Automotive etc. in the Europe, the Americas and the Middle
East.

Warringtonfire group is the world's leading independent fire

testing, consultancy, research, fire engineering and
Certification organization. It provides product testing in the
field of Fire Protection convering comprehensive range of
Architectural Hardware Products.

14
 SIZE OF THE UNIT

Generally units can be classified in three groups on the

basis of the investment in fixed assets.
Units having investment of three crores of less than that
in fixed assets is called small scale industry.
Any unit having investment between three crores to five
crores is called medium scale industry.
Any unit having investment in fixed assets more than
five crores is called large scale industry.
KICH MARKETING PVT.LTD. is a medium scale
industry as the investment in machinery is of four corers rupees.

15
 FORMS OF THE ORGANIZATION

The following forms of organization carry on modern business.

FORMS OF BUSINESS ORGANIZATION

______________________________↓________________________________
↓ ↓ ↓
Private Enterprise Co-operative sector Public sector
↓ ↓ ↓
Sole Trade Co-operative Sector Government Dept.
Partnership Co-operative Society Government Company
Company Organization Statutory Corporation
Private company Statutory Board
Public Company

In India we have adopted the pattern of mixed economy where in we

have two distinct sector private enterprise and public enterprise.
Public enterprise means ownership and management of public and
government i.e. Government Department, Semi Government etc.
Private enterprise means ownership and management of control by
individual of group of individual.

PRIVATE ENTERPRISE

Sole Trader
Partnership
Company
Private Company

KICH MARKETING PVT.LTD. is a private company.

16
 TIME KEEPING SYSTEM

Time keeping helps in keeping check over of obsentisium.

It also helps in calculating wages and salary on the basis of
attendance. Time keeping system helps in creating a discipline
atmosphere by making employees regular at work.

KICH MARKETING PVT.LTD. has a computerized

punch card system. As the workers come they have punch the card
so that time is noted. The card had all the details of the employees.

For office employees

 10:00 AM TO 7:30 PM (For marketing Department)

 9:00 AM TO 7:00 PM (For Finance Department)
 One hour lunch break

For workers

 8:30 AM TO 12:30 PM (First Shift)

 2:00 PM TO 8:00 PM (Second Shift)

On Monday they are having a holiday what generally having in all

industries.

17
 ORGANIZATIONAL STRUCTURE

The superior subordinate relationships are defined by

organizational structure, which are formal documents that indicated
the chain of command and the title that have been assigned to the
managers and the other personnel. These structures indicate people’s
location of positions in the hierarchy and their relationships within
the formal organizations. They aid in determining which of the basic
types of organizational authority structure a particular enterprise has
adopted.

Importance of organization can be related from few

words said by richest man of one time is much? “Take away my
factories, land an all what I have but just leave my organization and
in few years, I will be where I was.”

“Organization is the process of so combining the work

which individuals or groups have to perform with facilities
necessary for its execution, that the duties so performed provided the
best channels for efficient, systematic, positive and co ordination
application of available efforts.”

With help of systematic organization of company can

work more efficiently the organization makes the delegation of work
so that the work becomes easier. It also makes the chain between the
people. In this way everyone has to be relationship for the work.

According to my observation line and staff organization

is adopted. It means authority is in the hand of top level and
responsibility rests with medium and lowers level. Authority flows
from top to bottom and responsibility flows from bottom to top.

18
 ORGANIZATION CHART

Managing Director

Director

Marketing Manufacturing Finance HR

Department Department Department Department

Production Accountant H.R. (Head)

Manager Head
MKT MKT
Manager Manager
( H.O.) (Field head) Division Assistant H.R. (Assistant)
Supervisor Accountant

Marketing Regional
Admini. Executive Employee Staff
Staff

19
 PLANT LOCATION

Every entrepreneur of a business unit must give full

consideration to suitable location of this entrepreneur because
location factors are crucial for profit maximization. An entrepreneur
has to choose such type of location, which minimizes the company
of production as well as distribution to a considerable extent.
However actual choice of location is governed by.

The location of unit is as under:-

KICH MARKETING PVT. LTD.

Yogeswar Main Rd, Atika,
Dhebar rd. (south), Rajkot -2
GUJARAT,
INDIA.

LAND

The company has acquired 30,000 sq. feet. Of land from

industrial area (atika) Rajkot. And the land is more than adequate for
proposed project. As the proposed project is in industrial area (atika)
Rajkot location area all the infrastructure facilities such as power,
water, communication service, roads etc. are easily available

NEARNESS TO MARKET

20
 Nearness to the market is important for supplying goods to
customers in a minimum period of time adjusting supply according
to the changes in a demand and gaining control over the market.
Nearness to the changes to the market reduces the costs of
transportation finished goods to the market and enhances taking
advantage of favorable prices and demand in the market. The
producer’s survival capacity increases when the market is near the
center of production. Rajkot city has many industries like Diesel
Engines, Machine industries, etc. which offer ready existing market
for company’s products.

TRANSPORT FACILITIES

Transportation facilities with a good speed and capacity are

needed for transporting laborers and establishing contacts in the
market and controlling supply according to the changes in the
demand. Rajkot is situated centrally in the Saurashtra region. Rajkot
is well connected with almost major industrial cities by roads. For
exports, KICH MARKETING PVT.LTD.trasport their product by
road, by train, by air.

AVAILABILITY OF LABOUR

The importance of labour has not less ended in spite of

mechanization. If the supply of laborers is not regular man hours and
machine hours are lost. Surroundings the Rajkot region there are
very large numbers of Diesel Engines, Machine Industries plants. So
there is no depth of skilled and semi skilled workers.

21
THE
PRODUCTION
DEPARTMENT

PRODUCTION DEPARTMENT

22
SR. PARTICULARS PAGE
NO. NO.

1. INTRODUCTION

2. PRODUCTS

3. PRODUCTION PROCESS

4. PRODUCTION PLANNING

5. RAW MATERIALS & ITS SOURCES

6. STORAGE FACILITY

7. RESERCH AND DEVELOPMENT

8. QUALITY POLICY

INTRODUCTION

23
 Production is the basic activity of all industrial units.
Another activity revalue around this activity. The end product of the
production activity is the creation of goods and services for the
satisfaction of human wants. The production activity is nothing but
the step-by-step conversion of one form of materials into another
either chemically or mechanically.

Production is considered as a heart of any company.

Production involves the step-by-step conversion of one form of
materials into another through chemical or mechanical processing to
create or enhance the utility of the products.

“Production is the process by which goods and services are

created.”
OUTPUT
INPUT PRODUCTION
FUNCTION

MATERIAL PRODUCTS

LABOUR SERVICES

CAPITAL INFORMATION

ENERGY PRODUCT OR SERVICES

INFORMATION

RESOURCES

PRODUCTS

24
 KICH MARKETING PVT.LTD. is producing
architectural hardware product with a large variety. It manufacture
closed die steel forged products as per the specifications in carbon,
alloy and stainless steel and supply them in as treated, partially or
fully machined condition.

The products is a thing which is offered to the

customers to satisfy their needs and wants product is most important
and tangible component may raw materials for other company. The
architectural hardware product of KICH MARKETING PVT.LTD.
is raw material for residential, aviation, education, entertainment,
healthcare, information technology, media publication.

The products of the company are as follows.

Mortice Handles, Signages

Pull Handles, Escutcheons (Key Holes),

Door Hinges, Back Plates,

Door Knobs, Door Stopper,

Cabinet Handles, Floor & Wall

Drawer & Cabinet Knobs, Mounted Door Stops,

Mortice Locks & Pin Cylinders, Handrail &Balustrade System

Bathroom Accessories

The important factor of each and every industry is

production process. It is a heart of any business in market. The

25
manufacturing involves machineries as well as manpower. The
production is done on large scale.

The layout of the plant has been designed in such a way

so that all the manufacturing activities are under one roof. Such that
the flow of material process at one stage automatically flows to next
stage of processing thereby reducing manpower to handle the
material from one place to another and avoid waiting time for the
next process.
“Maintaining the quality standards through
constant evaluation inspection and verification.”

KICH MARKETING PVT.LTD. also supplying

architectural hardware product too many other companies with
Mortice Handles, Pull Handles, Door Hinges, Door Knobs, Cabinet
Handles, Drawer & Cabinet Knobs, Mortice Locks &Pin Cylinders,
Signages, Escutcheons (Key Holes), Back Plates, Door Stopper,
Floor & Wall Mounted Door Stops, Handrail &Balustrade System,
Bathroom Accessories etc. in India and abroad.

Bathroom Accessories

26
Bathroom Accessories Products

Door Hardware Accessories

Mortice Handle Pull Handle Door Hardware

Furniture Fitting

Cabinet Handle Drawer/Cabinet Knobs Door Hinges

Handril and Bluster System

27
 Side Mounted Flat Side Bracket Railing Top Mounted Round
Baluster System with System with Glass Baluster System with
Glass Glass

Door Concept Product

Floor Spring Patch Fitting Door Closer Hydr. Hinges Shower Higs. Spider Fitting

Mortice Locks & Pin Cylinders Door Hinges

28
 PRODUCTION PROCESS
For making any product the production department has to
pass certain process like, to purchase raw materials and quality of
raw materials as far as quality is concern KICH purchased high
quality standard raw materials like AISI 316.

The process of production is given as under:

PULL HANDLE:

Raw Materials AISI 316 STAINLESS STEEL

Cutting or Shaping

Pipe Banding (Pipe or Bar Cutting)

Bush Fitting

Drilling, Screw fitting (Support to Bush)

Buffing, Polishing, Design

Logo Marking

Packing

So this is production process of pull handle. Now we look to cabinet

handle process.

29
CABINET HANDLE:

Raw Materials AISI 316 STAINLESS STEEL

Cutting or Shaping

Road pressing

Drilling process (Screw Fitting)

Buffing (Satin & Glossy)

Logo Marking

Packing

So this is the production process of cabinet handle. After

observing two process chart we can say that the different product
needs some difference production process.

30
 PRODUCTION PLANNING

The objective of hating the manufacturing organization is

to make products. Thus production is nucleus on the center of the
entire business operations. Production planning comprises the
planning. Routing, dispatching in the manufacturing process so that
the movements of materials, performance of machines and
operations of labour are directed and coordinated as to quality and
time. Production planning is operation activity. It aims to make all
necessary are arrangements so that the production targets as set in
the production budget and master schedules are reached.

According to Alford & Beatly, production planning is

defined as “The techniques of forecasting of picturing ahead
every steep in along series of separate operations each step to
be taken in the right place, of the right degree and at the right
time and each operation to be done at the maximum
efficiency.”

31
 RAW MATERIALS & ITS SOURCES

The main raw materials for the manufacturing of architectural

components consists of anti-corrosive high grade AISI 316 stainless
steel while other manufacturers use 304 or 202 common steel
grades. For the manufacturing purpose there are some other minerals
uses like Carbon, Silicon, Manganese, Phosphorus, Sulphur,
Chromium, Molybdenum (MOLY), and Nickel.

The company procures above mentioned raw materials

from the various steel mills namely.

 JINDAL STEEL LTD.

 REAL STRIPE LTD.

METHOD OF PURCHASING

There are some basic features of scientific purchasing of

buying of raw materials namely:

 Right Quality
 Right Time Of Delivery
 Right Place
 Right Place Of Delivery
 Right Sources of Supply.

There are various methods of purchasing following by

trader like forward purchasing in KICH MARKETING PVT.LTD. It
is done on credit basis. The raw materials are mostly brought from
India.

32
 STORAGE FACILITY

The storage of goods is connecting link between the

shops of working places and production, control department
materials parts work in progress etc. mover through the store just as
money mover in to and out of the commercial banks. Principal’s
functions of store are to act as a clearing house for goods being
translated.

KICH MARKETING PVT.LTD. have their own where

house to storage the raw materials and finished goods. Storage
facilities are available in the factories premises itself.

MACHINERY:

Machines uses in the factory are mainly obtained from

India. KICH also use foreign machinery but they are not direct
import from abroad but they are purchase by Indian distributor.

MANAGEMENT OF RESIDUE:

In architectural product production there are not that

much wastage produce after the whole process of production. As far
as KICH is concern after the whole production process the wastage
goes to resale

33
 RESEARCH AND DEVELOPMENT

Research is and activity, which is carried on for the further

progress of the company. Due to research the new products are
launched in the market. It is research because of which the
customers enjoy a variety of products.

In KICH MARKETING PVT.LTD. Research is done of the

basis of drawing as per specification and they send it to the
customer, if the customers give positive response then they produce
or manufacture that type of product. Company has R&D division
besides having in house Design Studio and Tool Room to innovative
and Develop New Design Dies, Jigs & Fixtures.

The industry is in continuous efforts to launch a new

beneficial product for their customer. Their main objective is to find
out recent market trend. So the target resonance for this research is
retailed.

34
 QUALITY POLICY

KICH MARKETING PVT LTD. Is committed to “Total

Quality Management”. Main focus of the company that excellence
is linked with a total commitment to quality and service. KICH
realize that success depends in reliability. And so KICH shall
always endeavor to exceed your expectations.KICH believe that
"Quality can not be defined, it can only be experienced"

Example of Quality

Things looking similar may be quite different inside!

As KICH products are manufactured only from the Highest Quality

raw material with utmost meticulousness, a little higher cost is
unavoidable, however considering:

• High benefit/cost ratio.

• Lifetime trouble free functioning with zero maintenance cost
• Longer Life cycle cost analysis.
• Prompt Pre & After Sale services.

35
THE
MARKETING
DEPARTMENT

36
 MARKETING DEPARTMENT

SR. PARTICULARS PAGE

NO. NO.

1. INTRODUCTION

2. DEFINITION

3. DEPARTMENT CHART

4. MARKETING CONCEPT

5. NEW PRODUCT DEVELOPMENT

6. MARKET SEGMENT,TARGET,POSITION

7. PRICING POLICY

8. DISTRIBUTION CHANNEL

9. ADVERTISEMENT

10. MARKETING RESEARCH SYSTEM

11. ESTEEMED CLIENT

37
 INTRODUCTION

Marketing means human activity that takes

place in relation to market. Marketing means working with markets,
which means attempting to ace to actualize potential exchange for
the purpose of satisfying human needs and wants .Thus we turn to
our definition of marketing as human activity directed at satisfying
needs and wants through exchange processes.

Exchange processes involve work. The seller has to

search for buyers, identify their needs, design, appropriate them
store and transport them negotiate, and so on. Such activities as
product development, search, communication, distribution, pricing,
and service, constitute core marketing activities.

Although it is normal to think of marketing of the

activities of “seller” buyers also carry out marketing activities. The
housewife does her “marketing” that is, she search for the goods she
needs at pries she is willing to pay. The purchasing agent who needs
a commodity in short supply has to track down sellers and offer
attractive terms. A seller’s market is one in which the buyers is the
more active “marketer”, and a buyer’ market is one in which the
seller is the more active “marketer

In the early 1950s the growing supply of goods

created a buyers’ market, and marketing became identify with sellers
trying to find buyers.

38
 DEFINITION OF MARKETING

“Marketing is a human activity directed at satisfying

needs and wants through exchange process”

“Marketing is the performance of business activities

that direct the flow of goods and services from products to consumer
or user”

“Marketing is getting the right goods and services to

the right people at the right place at the right time at the right price
with the right communication and promotion”

“Marketing as the process of the planning and

executing pricing promotion and distribution of idea goods and
services to create exchanges that satisfy individual and organization
objectives.”

- American Marketing association

39
 DEPARTMENT CHART

The organization marketing department chart of KICH

MARKETING PVT. LTD. is as follows:

MARKETING
DEPARTMENT

Marketing Marketing
Manager Manager
(H.O.) (Field Head)

Marketing Regional
Admini. Executive
Staff

The above marketing department chart shows the chain of

activities of marketing in KICH MARKETING PVT.LTD. Thus
they have line type of channel in marketing department in which
authority flows top to bottom.

The marketing task of the company has been fully handled

with the help of expert.

40
 MARKETING CONCEPT

Competing concept of marketing

1) The production concept
2) The product concept
3) The selling concept
4) The marketing concept
5) The holistic marketing concept
1) The production concept

The production concept is one of the oldest concepts

in business. It holds that consumers will prefer the products that
are widely available and inexpensive. Managers of production
oriented business concentrate on achieving high production
efficiency, low costs, and mass distribution. This orientation
makes sense in developing countries such as china where the
largest PC manufacturer, Legend and domestic appliances giants
Haier take advantage of the country’s huge inexpensive labor
pool to dominate the market. It is also used when a company
wants to expand the market.

2) The product concept.

The product concept holds that consumers will

favor those products that offer the most quality, performance, or
innovative features, Managers in these organizations focus on
making superior products and improving them over time.
However, these managers are sometime caught up in a love affair
with their products. They might commit the “Better
mousetrape”.fallacy, believing that a better mousetrap will lead
people to beat a path to their door. A new or improved product
will not necessarily be successful unless the product is priced,
advertised, and sold properly.

41
 3) The selling concept.

The selling concept holds that consumers and

busineses, if left alone, will ordinarily not buy enough of the
organization’s products. The organization must, therefore,
undertake an aggressive selling and promotion effort. The selling
concept is epitomized in the thinking of Sergio zyman, coca-
cola’s former vice president of marketing: The purpose of
marketing is to sell more stuff to more people more often for
money in order to make profit.

4) The marketing concept.

The marketing concept emerged in the mid-1950s. Instead

of a product-centered, “make-and –sell” philosophy, business shifted
to a customer-centered, “sense-and-respond” philosophy. Instead of
“hunting,” marketing is “gardening.” The job is not to find the right
customers for your products, but the right products for your
customers. The marketing concept holds that the key to achieving
organizational goal consist of the company being more effective
than competitors in creating, delivering, and communicating
superior customer value to its chosen target markets.

5) The holistic concept

The holistic concept is based on development, design,

and implementation of marketing programes, processes, and
activities that recognizes their breath and interdependencies. Holistic
marketing recognizes that “everything matters” with marketing and
that a broad, integrated perspective is often necessary. Four
components of holistic marketing are relationship marketing,
integrated marketing, internal marketing, and social responsibility
marketing.

42
 MARKET SEGMENTATION

SEGMENTING

Market segmentation is one of the steps that go into

defining and targeting specific markets. It is the process of dividing a
market into a distinct group of buyers that require different products
or marketing mixes.

A key factor to success in today's market place is finding

subtle differences to give a business the marketing edge. Businesses
that target specialty markets will promote its products and services
more effectively than a business aiming at the "average" customer.

Opportunities in marketing increase when segmented

groups of clients and customers with varying needs and wants are
recognized. Markets can be segmented or targeted using a variety of
factor. Market can be segmented in to four categories, which is given
as under:

• Demographical bases (age, family size, life cycle, occupation)

• Geographical bases (states, regions, countries.
cities,neighbourhoods)
• Behavior bases (product knowledge, usage, attitudes, responses)
• Psychographic bases (lifestyle, values, personality. user status,
usage rate)

The product of the company is architectural, so the company

has segmented its market in above four category the total market has
been divided into two zones.
Marketing in Gujrat,M.P.,U.P,Rajsthan & North India by KICH
MARKETING PVT.LTD.
Marketing in Maharashtra,Goa,South & East India by NEKI
Corporation.

43
TARGETING

Targeting is the second stage of the segment "Target"

position (STP) process. After the market has been separated into its
segments, the marketer will select a segment or series of segments
and 'target' it/them. Resources and effort will be targeted at the

Single Level With Single Product

The first is the single segment with a single product. In other

word, the marketer targets a single product offering at a single
segment in a market with many segments. For example, British
Airway's Concorde is a high value product aimed specifically at
business people and tourists willing to pay more for speed.

One Product For All Segment

Secondly the marketer could ignore the differences in the

segments, and choose to aim a single product at all segments i.e. the
whole market. This is typical in 'mass marketing' or where
differentiation is less important than cost. An example of this is the
approach taken by budget airlines.

Multi Segment Approach

Finally there is a multi-segment approach. Here a marketer

will target a variety of different segments with a series of
differentiated products. This is typical in the motor industry. Here
there are a variety of products such as diesel, four-wheel-drive,
sports saloons, and so on.

44
POSITIONING

The third and final part of the SEGMENT - TARGET -

POSITION (STP) process is 'positioning.' Positioning is
undoubtedly one of the simplest and most useful tools to marketers.
After segmenting a market and then targeting a consumer, you
would proceed to position a product within that market.
Remember this important point. Positioning is all
about 'perception'. As perception differs from person to person, so
do the results of the positioning map e.g. what you perceive as
quality, value for money, etc, is different to my perception.
However, there will be similarities.
Products or services are 'mapped' together on a
'positioning map'. This allows them to be compared and contrasted
in relation to each other. This is the main strength of this tool.
Marketers decide upon a competitive position which enables them to
distinguish their own products from the offerings of their
competition (hence the term positioning strategy).
The term 'positioning' refers to the consumer's perception
of a product or service in relation to its competitors. You need to ask
yourself, what is the position of the product in the mind of the
consumer?
Trout and Ries suggest a six-step question framework for successful
positioning:

1. What position do you currently own?

2. What position do you want to own?
3. Whom you have to defeat to own the position you want.
4. Do you have the resources to do it?
5. Can you persist until you get there?
6. Are your tactics supporting the positioning objective you set?

PRICING POLICY

45
 Pricing policy and setting the price are the most important
aspect of marketing mix. A company has to set up its price policy
considering various factors such as demand, competition etc. but the
most important factor affecting pricing is the supply of the raw
material price. In fact it is the source of revenue, which the firm
seeks to maximize. Again, it is the most important device which a
firm can use to expand its market. Every company has its own
pricing policy.
During the determine the of the product price at that time
you have to consider the following point.
● Determine primary and secondary market segments.

● Assess the product's availability and near substitutes

● Survey the market for competitive and similar products
● Examine market pricing and economics
● Calculate the internal cost structure and understand how
pricing interacts with the offering.
● Test different price points if possible.
● Monitor the market and your competition continually to
reassess pricing.
There are various methods of determine pricing they are:
● Cost plus pricing method
● Marginal pricing method
● Going rate pricing method
● Customary pricing method

So this is the various methods of determining pricing out of

various methods KICH MARKETING PVT.LTD. uses cost plus
pricing method

46
 DISTRIBUTION CHANNEL

Channel of distribution indicates the routes of path and was

trough which goods or services flow and reach to customers.
Distribution channel means the set marketing activities related to the
movement or flow of goods and services from the primary produces
to the ultimate consumer.
The producer and the final customer are part of every
channel. We will use the number of intermediary levels to designate
the length of a channel.

ADVERTISING

47
 Advertising is a form of mass communication. The
marketing has been defined as any paid form of non personal
presentation and promotion of ideas, goods and services by an
identified sponsor. Population of product is the basic aim of the
advertising activity

Before the advertise the question arise in everybody mind

that why we are advertise?

Why advertise?
The following may be good reasons why a business is advertising:
• To create awareness, customer interest or desire
• To boost sales (moving the demand curve to the right)
• To build brand loyalty (or to maintain it at the existing level)
• To launch a new product
• To change customer attitudes – perhaps trying to move a product
more “upmarket” or to dispel some widely held perceptions about
the product
• To support the activities of the distribution channel (e.g. supporting
a “pull” strategy)
• To build the company or brand image
• To reminds and reassure customers
• To offset competitor advertising – businesses may defend market
share by responding to competitors’ campaigns with their own
advertising

48
• To boost public standing: companies can boost their public
standing with advertisements that link them with generally
approved campaigns such as care for the environment
• To support the sales force – advertising can make the job of the
sales force easier and more effective by attracting leads from
potential customers and perhaps motivate them by boosting the
profile of the business

Advertising- media

There is a huge variety of media available through which a

business can conduct an advertising campaign. What are the main
types of media and what considerations should a business make in
choosing between them?
Before committing an advertising budget it is necessary
to carry out marketing research on:
- Potential customers
- Their reading habits, television-watching habits
- How many times the advertisers wish the potential customers to
see an advertisement
- How great a percentage of the market they wish to reach, etc.

49
 These elements all need to be considered and balanced to plan a
campaign that will effectively reach its target audience at a
reasonable cost.
A useful distinction can be made between “published media” and
“visual/aural media”.

Published media include:

 National newspaper
 Sunday newspaper
 Local and regional newspaper
 Consumer magazine
 Specialist magazine
 Trade and professional press
 Internet

Visual and aural media include:

 Television
 Radio
 Cinema
 Bill board
 Transport
 Direct mailing

As far as advertising is concern KICH

MARKETING PVT.LTD.advertise their product both way
through published media and visual and aural. In terms of
published media local newspaper, customer magazine, Specialist
magazine while through aural media they are use only direct
mailing.

50
 NEW PRODUCT DEVELOPMENT
A company can add new products through acquisition or
development. The acquisition route can take three forms. The
company can buy other companies, it can acquire patents from other
companies, or it can buy a license or franchise from another
companies. Swiss food giant Nestle increased its presence in North
America via its acquisition of such diverse brands as carnation, hills
brothers, Stouffer’s, Ralston Purina, dreyer’s ice cream, and chef
America
The development route can take two forms. The company
can develop new products in its own laboratories, or it can contact
with independent researchers or new product development firms to
develop specific new products.

Following six categories of new products identify:

1) New-to-the-world products: - New product that create an

entirely new market.
2) New product lines: - New product that allowed a company to
enter an established market for the first time.
3) Additions to existing product lines:- New product that
supplement established product lines (package sizes, flavors, and
so on).
4) Improvement and revisions of existing products:- New
products that provide improved performance or greater perceived
value and replace existing products.
5) Repositioning: - Existing products that are targeted to new
market or market segments.
6) Cost reductions: - New product that provide similar
performance at lower cost.

51
New product development decision process

Idea generation

Idea screening

Concept development and testing

Marketing strategy development

Business analysis

Product development

Market testing

Commercialization

For the purpose new product development KICH have their own
product design studio and tool room to innovate and develop new
design dies, jigs & fixtures.

52
 PRODUCT LIFE CYCLE

A new product progresses through a sequence of stages from

introduction to growth, maturity, and decline. This sequence is
known as the product life cycle and is associated with changes in the
marketing situation, thus impacting the marketing strategy and the
marketing mix.

The product revenue and profits can be plotted as a function

of the life-cycle stages as shown in the graph below:

Product Life Cycle Diagram

Introduction Stage

In the introduction stage, the firm seeks to build product

awareness and develop a market for the product. The impact
on the marketing mix is as follows:

• Product branding and quality level is established and

intellectual property protection such as patents and trademarks
are obtained.
• Pricing may be low penetration pricing to build market share
rapidly, or high skim pricing to recover development costs.

53
 • Distribution is selective until consumers show acceptance of
the product.
• Promotion is aimed at innovators and early adopters.
Marketing communications seeks to build product awareness
and to educate potential consumers about the product.

Growth Stage

In the growth stage, the firm seeks to build brand preference

and increase market share.

• Product quality is maintained and additional features and

support services may be added.
• Pricing is maintained as the firm enjoys increasing demand
with little competition.
• Distribution channels are added as demand increases and
customers accept the product.
• Promotion is aimed at a broader audience.

Maturity Stage

At maturity, the strong growth in sales diminishes.

Competition may appear with similar products. The primary
objective at this point is to defend market share while
maximizing profit.

• Product features may be enhanced to differentiate the product

from that of competitors.
• Pricing may be lower because of the new competition.
• Distribution becomes more intensive and incentives may be
offered to encourage preference over competing products.
• Promotion emphasizes product differentiation.
•

54
Decline Stage

As sales decline, the firm has several options:

• Maintain the product, possibly rejuvenating it by adding new

features and finding new uses.
• Harvest the product - reduce costs and continue to offer it,
possibly to a loyal niche segment.
• Discontinue the product, liquidating remaining inventory or
selling it to another firm that is willing to continue the product.

So these are the various stages of product life cycle every

company have to pass one by one stage. KICH MARKETING
PVT.LTD.is now growth stage

MARKETING RESEARCH
55
 Marketing research as the systematic design, collection,
analysis, and reporting of data and findings relevant to a specific
marketing situation facing the company. Marketing research is now
about a $16.5 billion industry globally, according to ESOMAR, the
world association of opinion and market research professionals.
A company can obtain marketing research in a number
of ways. Most large companies have their own marketing research
departments, which often play crucial roles within the organization.
Marketing research is not limited to large companies
with big budgets and marketing research departments. At much
smaller companies, marketing research is often carried out by
everyone in the company and by customers, too.
Companies normally budget marketing research at 1 to 2
percent of company sales. A large percentage of that is spent on the
service of outside firms.

The Marketing research Process.

1. Define the problem. Never conduct research for things that you
would 'like' to know. Make sure that you really 'need' to know
something. The problem then becomes the focus of the research. For
example, why are sales falling in particular region?

2. How will you collect the data that you will analyze to solve
your problem? Do we conduct a telephone survey, or do we arrange
a focus group? The methods of data collection will be discussed in
more detail later.

3. Select a sampling method. Do we us a random sample, stratified

sample, or cluster sample?

4. How will we analyze any data collected? What software will

we use? What degree of accuracy is required?

5. Decide upon a budget and a timeframe.

56
6. Go back and speak to the managers or clients requesting the
research. Make sure that you agree on the problem! If you gain
approval, then move on to step seven. 7. Go ahead and collect the
data.

7. Conduct the analysis of the data.

8. Check for errors. It is not uncommon to find errors in sampling,

data collection method, or analytic mistakes.

9. Write your final report. This will contain charts, tables, and
diagrams that will communicate the results of the research, and
hopefully lead to a solution to your problem. Watch out for errors in
interpretation.

Sources of Data - Primary and Secondary

There are two main sources of data - primary and

secondary. Primary research is conducted from scratch. It is original
and collected to solve the problem in hand. Secondary research, also
known as desk research, already exists since it has been collected for
other purposes.

Primary - Marketing Research.

Primary marketing research is collected for the first time. It is
original and collected for a specific purpose, or to solve a specific
problem. It is expensive, and time consuming, but is more focused
than secondary research. There are many ways to conduct primary
research. We consider some of them:
1. Interviews
2. Mystery shopping
3. Focus groups
4. Projective techniques
5. Product tests

57
6. Diaries
7. Omnibus Studies

Secondary - Marketing Research.

Secondary marketing research, or desk research, already exist in

one form or another. It is relatively cheap, and can be conducted
quite quickly .However, it tends to have been collected for reasons
other than for the problem or objective at hand. So it may be
untargeted, and difficult to use to make comparisons (e.g. financial
data gather on Australian pensions will be different to data on Italian
pensions). There are a number of such sources available to the
marketer, and the following are ways of secondary market research.

1. Trade associations
2. National and local press Industry magazines
3. National/international governments
4. Websites
5. Informal contacts
6. Trade directories
7. Published company accounts
8. Business libraries
9. Professional institutes and organizations
10. Omnibus surveys
11. Previously gathered marketing research
12. Census data
13. Public records

ESTEEMED CLIENT

58
59
THE
PERSONNEL
DEPARTMENT

60
 PERSONNEL DEPARTMENT

SR. PARTICULRS PAGE

NO. NO.
1 INTRODUCTION
2. ORGANISATION OF PERSONNERL DEPARTMENT
3. FUNCTION OF PERSONNEL MANAGEMENT
4. MANPOWER PLANNING
5. RECRUITMENT
6. SELECTION
7. TRAINNING & DEVELOPMENT
8. JOB DESCRIPTION
9. PROMOTION
10. WAGE & SALARY ADMINISTRATION
11. BENEFITS & SERVICES
12. PERFORMANCE APPRISAL
13. TRADE UNIOUS
14. PROVIDENT FUND SCHEME

INTRODUCTION

The success or failure of an organization depends on

materials, machines and equipment but on the efficiency of the
personnel to put their best efforts for an efficient performance of
their job.
To achieve the basic objective of an organization,
efficient and effective use of the people at work is essential.

61
Personnel management is the general management of people at
work. Personnel management is a function of the general
management with the objective of ensuring that every employee
makes his fullest contribution to the achievement of the objective of
business.

The objective of personnel management is to achieve

maximum individual development, desirable work atmosphere and
interpersonal relations. This essence of personnel management is the
understanding of people at work and or the basic of these knowledge
formulating personnel policies of the enterprise.

The management of men is challenging task because of

the dynamic nature of the people. NO two people are similar in
mental abilities, traditions, sentiments and behavior.
“Personnel management in that part of the
management which is primarily concerned with the human
relationships within an organization.”

“The personnel function is concerned with the

procurement, development, compensation, integration and
maintenance of the personnel for the purpose of contributing
towards accomplishment of that organization major goal of
objectives.”
The success of the business depends on the brains.
Personnel in the company. The company should have efficient and
sufficient manpower that have the path towards success.

ORGANIZATION OF PERSONNEL
DEPARTMENT

62
 An organization is a group of individuals who co-
ordinate into different levels of authority and segments of
specifications for the purpose of achieving the goals and objectives
of the organization.

“ The organization is the process of identifying and

for up the work to be performed, defining and delegating
responsibility and authority and establishing relationship for
the purpose of enabling people to work most effectively
together in establishing of objectives.”

The internal organization structure of personnel

department varies widely in different, companies depending upon
their size. As in small companies personnel functions are discharged
but in large company where personnel activities are generally of a
complex nature separate department is organized for the purpose.

FUNCTIONS OF PERSONNEL
MANAGEMEMNT

63
 Function of Personnel Management

Managerial Function Operational function

Planning Procurement of Personnel

Organizing Development of Personnel
Directing Compensation to Personnel
Controlling Employees Benefit
Maintains Industrial Relation
Record Keeping
Personnel Planning Evaluation

MANPOWER PLANNING OR HUMAN

RESOURCES PLANNING

64
 Manpower planning means developing and determining
objective policies and programs to Develop and utilize the existing
manpower in the desired direction to achieve organizational
objectives i.e. appointing right man on the right job at the right time.

“An executive manpower planning programmed

can be defined as an appraisal of an organization’s ability to
perpetuate itself with respect to its management as a
determination of measures necessary to provide the essential
executive talent.”

There are generally two types of HRP

 SHORT TERM HUMAN RESOURCES PLANNING

 LONG TERM HUMAN RESOURCES PLANNING

 SHORT TERM HRP

Short term HRP is made for short period, say for one
year. Short term plans are concerned with specific projects and
programmers existing personnel can hardly match completely the
requirement of a job. Thus in short term manpower planning, the
basic problem is to match the existing individuals and filling current
vacancies as a best one can do with available manpower.

 LONG TERM HRP

Long term HRP is made for long period, say for five to
six years. An organization has flexible of matching its human

65
resources and jobs by taking action which have long run inspect i.e.
recruiting employees.

Doing this thing does in KICH MARKETING PVT.

LTD. Manpower planning in a very systematic way they utilize
human resources as max possible way. Company has also three and
six month’s probation period.

RECRUITMENT

66
 Once the manpower requirement has been determined
recruitment is the next logical step in staffing process. Recruitment
is the process of identifying the sources for prospective candidates
and to stimulate them to apply for the jobs.

“Recruitment is the process of searching for

prospective employees and stimulating them to apply for jobs
in the organization.”

TWO SOURCES OF RECRUITMENT

Internal sources:-
Internal source include personnel already on the pay roll
of the organization. Whenever any vacancy arises, somebody from
within the organization may be looked into.

External source:-
External sources of recruitment refer to prospective
candidates outside the enterprise. They usually include new entrants
to the labour force the unemployed and people in other organization
seeking a charge.

KICH MARKETING PVT.LTD. Fills up its vacancies

through promotion of people available in the organization and
through the selection of people from outside that is through
advertisement in newspaper, through job fair,colleges,placement
agency, advertisement, through website like
Naukari.com,Timesjob.com

SELECTION

Selection is the second step in the process of

procurement of people. It is the process of choosing the individual

67
who possesses the necessary skills, abilities and personality to
successfully fill specific job as in the organization. It is a negative
process then recruitment because a person either gets a job or not.

“Selection is the process of choosing best alternative

out of number of alternative.”

In KICH MARKETING PVT.LTD. selection procedure

is undertaken in following way.

1. SCREEING APPLICANTS
First of all personnel manager will check all the information
contained application from the concern in order to ensure that
whether it meets the standards or not. If it meets then the suitable
candidate is called for the further selection process that is interview.

2. INTERVIEW
Here an effort is made by the personnel manager to get overall
information of the candidate like candidate work experience,
candidate further planning etc.

3. APPROVAL
On the basis of above steps suitable candidate is selected and are
asked to be present on specified date.

Procedure for Personnel Selection

68
 A. Scrutiny of Application form
B. Preliminary Interview
C. Application Blank
D. Employment Tests
a. Trade test
b. Psychological
i. Aptitude test
ii. Intelligence test
iii. Interest test
iv. Knowledge test
v. Projective test
vi. Personality test
E. Employment interviews
F. Reference Check
G. Medical Examination
H. Final Selection

TRAINING AND DEVELOPMENT

Training is short term process utilizing a systematic and
organized procedure by which non managerial personnel learn
technical knowledge and skills for definite purpose. Development is
a long term education process utilizing a systematic and organized

69
procedure by which managerial personnel can learn conceptual and
theoretical knowledge for general purpose.

“Training is the act of increasing the knowledge and

skills of an employee for dong particular job.”

By training the employees acquire new manipulating

skills, technical knowledge etc, Thus increasing the knowledge and
skills of the employee for better performance on job.

In KICH MARKETING PVT.LTD. Training is given in

two ways, which are as under:

 On the job training method

 Off the job training method

In KICH MARKETING PVT.LTD. Training is given to

every one including to management because they understand that
training is must for the employees that in new or old. Company
organized 7 days orientation programme and on the job training for
office employees.

For new and old employees on the job training is also

given. To improve production skill regular lecture also taken by the
management and also outside guest lecture arranged by the
management.

JOB DESCRIPTION

Job Description is an important document, which

provided organizational information, and functional information like
location, structure, and authority, what the work is etc, job

70
description is necessary of employee after the employment of one
candidate.

A Job Description enables the manager to frame suitable

questions to be asked during an interview. Job Description also
helps Top Executives especially when they jointly discuss one
another’s responsibilities over lapping and conclusion of the duty
and responsibility descriptions. A Job Description becomes a vehicle
for organization to change and improvement.

The information covers

 Working conditions
 Nature of job
 About superior when he get order and guidance.
 About subordinates to whom he has to control.

Job Description is present in KICH MARKETING

PVT.LTD. Where by the heads of various departments and the
clerks are smart and intelligent enough to know and learn the work
and experience also.

PROMOTION

71
 Promotion is the advancement of an employee to better
in terms of responsibilities more prestige or starts, greater skill,
higher grade and salary and increased privileges also.

“Promotion involves a change from one job to

another that is better in terms of status and responsibilities.”

THERE ARE TWO TYPES OF PROMOTION

 JOB PROMOTION: - In terms of placement at higher level.

 PAY PROMOTION: - In terms of increase in salary.

THERE ARE TWO BASES ON WHICH PROMOTION IS GIVEN

 ON THE BASES OF SENIORITY.

 ON THE BASES OF MERITS.

In KICH MARKETING PVT.LTD. Promotion is given

on the basis of performance. Company considering attitude towards
the work and their higher authority, Behaviour during the work,
communication skill, convincing power, innovative skill. The
manager takes all promotion decision. First ask for all reports of the
employees from the personnel department. After that they analyze
that reports and make decision that will be promoted and also
fixation of authority and responsibilities. And than promotion letter
is send to the employee, departmental head and the personnel
department.

WAGE AND SALARY ADMINISTRATION

72
 “Wages are the payments made to the employees as
compensation for the services rendered by them to an
enterprise.”

Wage and Salary administration is essentially the

application of a systematic approach to the problem of ensuring
those employees are paid in logical, equitable and fair manner.

A Wage is the remuneration. It refers to the hourly paid

for the service of labour in production, periodically to an employee
of workers. Salary refers top the weekly of monthly rates paid to
clerical administrative and professional employee.

Wage and Salary Administration refers to the

establishment and implementation of sound policies and practices of
employees’ compensation. The basic purpose of Wage and Salary
administration is to establish and maintain and equitable Wage and
Salary structure.

In KICH MARKETING PVT.LTD. Organization

managerial staff gets a monetary salary of more than Rs. 4000.per
month. Moreover the operative laborer also gets a monetary Salary
of Rs. 105 per day. (Unskilled worker).Company gives the salary on
the basis of skill.

BENEFITS AND SERVICES

73
BENEFITS:

Generally the companies provide benefits in two terms

that is monetary and non-monetary.

“Those benefit which are supplied by an employer

for the benefits of an employee and which are not in the form
of wages, salary and time rated payments.”

KICH MARKETING PVT.LTD. Is also providing

benefit schemes to their employees, which are listed below.

 OVER TIME BENEFITS

If the employees produce more than the target production

then they get extra benefits.

 TRAVELLING ALLOWANCE

Generally, company does not providing traveling

facilities to their office staff and labour.But as far as marketing
department is Concern Company provide vehicles on the basis of
performance. (Like car, bike and moped)

 UNIFORM FACILITY

The company is providing uniform facility to the

employees. Various departments have various dresses. like office
staff and production department.

74
  SAFETY MEASURES FACILITY

Company provides gloves, goggles, apron, industrial

safety shoes, ear ask etc. to the employees so that physically they are
protected while working in the factory.

 CANTEEN FACILITY

The company is providing basic canteen facilities to all

the employees at regular interval.

 MEDICAL SERVICES

The company provides medical service like aid to the employees. In

serious cases they are taken to the hospital. Company also organized
medical check up camp for employee.

PERFORMANCE APPRAISAL

75
 Employee appraisal is an important to manpower
development because it reveals strengths and weaknesses of an
employee and a development plant can be prepared for each
employee. Development of a person based on appraisal of his
performance leads to improved job performance. The appraised
employee can qualify himself for higher responsibilities, more
rewarding assignment and promotion.

Performance appraisal is systematic evaluation of eh

individual with respect to his performance on the job and his
potential for development. The immediate superior in charge of such
performance appraisal. The managerial appraisal should measure
both performances in achieving goals and plan as well as
performance as employee in all managerial function such as
planning, directing, controlling, organizing and leading,

The main purpose of performance appraisal is:-

 Evaluation of performance of work assigned.

 Determining suitability for promotion or transfer,
 Make employee aware of their key performance area.

In KICH MARKETING PVT.LTD. The performance

appraisal is done on the base of work and quality of the work and
time taken for the work. KICH MARKETING PVT.LTD. First
established the standards for the performance for example 10 units
produced per hours than that is the standard and the appraisal is done
how many unit is produced in how much time and what is the
quality is there.

PROVIDENT FUND SCHEME

76
 PF scheme is a king of saving. Any company having
more that 50 employees can join this scheme. This is statutory
scheme meant for welfare of the employees. In India it was started in
1962 and applied in all the industry. It is necessary for every
company to give PF scheme to its permanent employees.

The company is providing Provident Fund Schemes to

their permanent employees. In practice the company cuts 12% from
their (employees) basic salary and they (owner) add the same
amount and the amount are credited to the respective employees
account.

77
THE
FINANCE
DEPARTMENT

FINANCE DEPARTMENT

78
NO. PARTICULARS PAGE
NO.

1. INTRODUCTION

2. FINANCIAL PLANNING

3. CAPITAL BUDGETING

4. MANAGEMENT OF FIXED ASSETS

5. MANAGEMENT OF WORKING CAPITAL

6. ACCOUTING POLICIES

7. MANAGEMENT OF RECIVABLES

8. RATIO ANALYSIS

9. TREND IN LAST FIVE YEARS

INTRODUCTION

79
 Finance is lifeblood of business economy. It provides
basis to all business activities. Without finance neither any business
can be started nor successfully run. Provision of sufficient funds at
the required time is the key success of a business.
“The term finance can be defined as the
management of the flows of money through an organization,
whether it will be a corporation, school, bank or government
agency.”
“Finance may be defined as that administrative area
or set of administrative function in an which relate with the
arrangement of cash and credit so that the organization may
have the means to carry out its objectives as satisfactory as
possible.”
Finance department provides “Bass” for the company.
No company can run without sufficient finance. Finance is the
essence of any business, it is known as “A life blood of a business.”
Finance is required not only at the time of establishment
but also at the time of expansion, modernization, diversification and
replacement of assets. Every company should be able to manage its
finance efficiently and then only a company can prosper.
Financial Management includes the activities of raising
funds proper utilization of funds deciding up on the terms and
conditions, period of borrowings.
Financial management is that managerial activity which
is concerned with planning and controlling of the firm’s financial
resources. We cannot imagine a business without finance because it
is the control point of al activities.

FINANCIAL PLANNING

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 Finance is like lubricating all to any firm and planning is
the key to the success of financial manager. Financial planning is the
act of deciding in advance the quantity of capital required and its
form. No business whether small or large, can be successful until
and unless it prepare sound financial plan. The planning process is
an internal part of the job of financial manager. If the planning is
prepared carefully and accurately than the company is found to get
success in its field. In brief, to plan, judge and provide for future
cash inflow and cash outflow is the financial planning.

“Planning is deciding in advance what is to be done,

that is a plan is a projected course of action.”

“Financial planning pertains only to the function of

finance and includes the determination of the firms’ financial
objectives financial policies and financial procedures.”

Financial planning is necessary for the smooth running

of the business. KICH MARKETING PVT. LTD. Financial mangers
make financial planning according to the eager of sale of
requirement and divided in two ways.

 Long term financial planning

 Short term financial planning

Long term mainly concern with long term project

purchase of machine, building, land and furniture etc. short term
mainly concern to day to day functions etc. i.e. working planning.

KICH MARKETING PVT.LTD. has framed a very

promising financial plan prepared in light of future trends. KICH
MARKETING PVT.LTD. has considered following critical
elements.

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 I. Financial Pattern and Condition
II. Assents position and technological changes
III. Earning capacity and market condition
IV. Policy for administration of capital
V. Advance programming for financial resources
VI. Capacity to generate internal funds
VII. Position of financial control system
VIII. Capital market analysis
IX. Prospects of growth and allocation for contingencies

CAPITAL BUDGETING

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 Capital budgeting decisions pertain to fixed long term
assets which by definition refer to assess which are in operation and
yields a return, over a period of time usually exceeding 1 year.

“The objective of capital budgeting is to rank

various investments opportunities according to the prospective
earning’s they will yields.”

The most important aspects of capital budgeting process

are identification, evaluation, authorization and control. The effect
of investment decision extend in to the future and have to be
endured for a longer period than the consequences of the current
operating expenditure thus budgeting decisions are the most
important decisions.

KICH MARKETING PVT.LTD. would compare the

expenses of the previous before budgeting and then calculates
capital budget.

MANAGEMENT OF FIXED ASSETS

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 The management of fixed assets rewards to the purpose
of management of fixed assets for more utilization. There are some
fixed assets in the business. Fixed assets are the permanent
investment done by the company. There should be a systematic
utilization of this asset it depends up on the management how
efficiently the fixed assets are managed for the interest of a business.
This assess cannot be converted in to cash very easily.
There is a risk in value of fixed assets because of their
long life.

Fixed assets can be divided into two parts that is:-

 Tangible Assets – Building, Plants, Machineries
etc.
 Intangible Assets – Goodwill, Patents etc.

MANAGEMENT OF WORKING CAPITAL

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 Working capital indicates circular of flow of cash (cash
flow cycle) i.e. a short of a revolving fund starting with cash used to
pay for the raw materials, labour and operating expenses and when
finished products are ready for sale, the cash is recovered through
sale of these goods (on cash or on credit). Thus, we have a circular
cash flow from cash to inventories to receivables and back to cash.
There are two concepts of working capital.

NET WORKING CAPITAL: - It represents the excess

of total current assets over total current liabilities. It is quantitative
concept indicating the soundness of current financial position.

GROSS WORKING CAPITAL: - It is equal to the

sum of current assets only and it may represent both owned capital
as well as own capital. The concept of gross capital is a financial
concept whereas that of net concepts is an accounting concept.

Working capital management is concerned with the

problems the arise in attempting to manage the current assets, the
current liabilities and interrelationship that exists between them. The
goal of working capital management is to manage the firms’ current
assets and liabilities in such a way that a satisfactory level of
working capital is maintained. The interaction between currents
assets and current liabilities is the main theme of working capital
management.

Net Working Capital = Current Assets – Current Liabilities

Working Capital Turnover Ratio = Sales

Total Current Assets

PARTICUALRS 31-03-2007 31-03-2006

Inventories
Sundry Debtors
Cash & Bank

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 MANAGEMENT OF RECEIVABLES
The term “Receivables” is defined as debt. Owned to the
firm by customers revising from sale of goods or services in the
ordinary course of business. When firm sales well on credit it creates
account receivables management is caused trade credit management.

Receivables are considered as an essential marketing too,

acting as a bridge for the movement of goods through production
and distribution stages to customer.

Receivables or book debt has two characteristics.

 It involves an element of risks

 It is based on economic value i.e. goods and services passed on
to buyer have economic value and cash will be received in
future by seller.

The financial management, in managing the receivables is concerned

with maintaining the receivables at the optimum level and reviews
the credit policy and procedure accordingly.

Debtors Turnover Ratio = Total Sales

Debtors

RATIO ANALYSIS

A ratio is an arithmetical relationship between two

figures Financial Ratio analysis is a study of ratios between various

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items of group of items in Financial Statement. Ratio is classified
from different point of view as under.

 On the Basis of Financial Statement

A. P & L account
B. Balance Sheet Ratio
C. Combine Ratio
 View Point of Management
A. Profitability Ratio
B. Activity or Turnover Ratio
C. Financial Ratio
• Liquidity Ratio
• Position Ratio
• Leverage Ratio

In KICH MARKETING PVT. LTD. Prepared ratio on basis of

management view point.

GROSS PROFIT RATIO

The gross profit ratio reflects the efficiency with which management
products both unit of product. This ratio indicated the average spread
between the cost of goods sold and revenue. It shows the percentage
by which the selling price can fall and the percentage by which costs
of goods sold can increases before gross profits can be nullified. The
ratio of gross profit of KICH MARKETING PVT. LTD. is as under.

Gross Profit Ratio = Gross Profit × 100

Sales

NET PROFIT RATIO

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Net Profit Ratio established a relationship between net profit and
sales and indicated management efficiency in manufacturing
administering g and selling the product. This is the over all measure
of the firm’s ability to turn each rupee sales in to net profit. This
ratio indicates the firms capacity to which stands adverse economic
conditions. The Net Profit Ratio of KICH MARKETING PVT.
LTD. is as under.
Net Profit Ratio = Net Profit × 100
Sales

CURRENT RATIO

An important test by which the financial health of a company can

with reasonable reliability be judge in the concept of current ratio.
The current ratio, a very popular financial ratio, measures the ability
of the firm to meet its current liabilities; current assets get converted
into cash in the operational cycles of the firm and provide the funds
needed to pay current liabilities. The current ratio of the. is KICH
MARKETING PVT. LTD calculated as under.

Current Ratio = Current Assets

Current Liabilities

LIQUID RATIO

The ratio is also known as Quick Ratio or Acid Test Ratio. This ratio
established a relationship between quick or liquid assets and current
liabilities. An asset is liquid if it can be converted in to cash
immediately or reasonably soon of value. Cash is the most liquid
assets. This ratio indicated how for the company should have
enough resources to pay current obligation on demand. The liquid
ratio of KICH MARKETING PVT.LTD. is as under.

Liquid Ratio = Liquid Assets

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 Liquid Liabilities

TREND IN LAST FIVE YEARS

PROFIT

YEAR PROFIT
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007

SALES

YEAR SALES
2002-2003
2003-2004
2004-2005
2005-2006
2006-2007

FUTURE PLANS

Since the company has started its journey 16 years ago

but still business through modification, diversification and
development.

Future plan is very much essentials for the success of

business unit course of action to achieve the specific goal.

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 Company is going to established big plant in vavdi
village Rajkot for the purpose of meet the customer demand and
production.

The company is trying to make continue expansion in

international market and to serve new innovative product to the
world.

SUGGESTIONS

 The production capacity should be utilized 100%

 They should advertise more, so that sales of the company can
increases than present.

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  Company has to take part in trade fair for the purpose of
advertise and brand awareness.
 The spaces among the machines is less so the chances of
accident very high.
 To provide sound proof instrument for the production
department employee like ear mask.
 The department of production is separate so sometimes co
operation among the department is lacking.
 To arrange parking facilities for outside people.
 Wastage of the production process is pure steel so company
should think about reproduction in company own units.

CONCLUSION

India is a developing country and it has adopting free

economy. So it is an opportunity for every domestic company to

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upgrade its technology and other process in order to stand in modern
market, which has cut throat competition.

KICH MARKETING PVT.LTD. Has also taken the

opportunities of free economy and company takes opportunity in
architectural product market.

KICH MARKETING PVT.LTD. was not started on very

high basis but due to the efforts of the executives and directors it has
earned a good reputation in the industrial level.

It earns valuable foreign exchange for India through its

exports and has maintained good relation with outsiders and
employees. Here the best and efficient employees are appointed so
that effective results can be achieved.

I would like to give my best wishes to company so that

they may doing splendid success and a glorious achievement in
nearest future.

BIBLIOGRAPHY
• Website :- www.kichindia.com
• Marketing Department :- Philip Kotler

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• Personnel Department :- Mr. M.M. Verma & R.K. Agrawals
• Production Department :- Mr. M.M. Verma & R.K. Agrawals
• Finance Department :- Sherlekar & Sherlekar

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