A

Summer Training Report

AT

BLUE SPRING BEVERAGES PVT. LTD.

SUBMITTED BY:

1. JAIN VIPUL 2065

2. SHAH MILONI 2189
3. BEKAWALA DHANVI 2017
4. DHAKAN TANVI 2041
5. KRISHNA KAVAIYA 2087
6. BACHKANIWALA HASMITA 2009

UNDER THE GUIDANCE OF:

PROF. BAXIS PATEL

IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENT
FOR THE ADMISSION IN SEMESTER V IN
BBA PROGRAMME
 SUBMITTED TO:
NAVNIRMAN INSTITUTE OF MANAGEMENT
(NIM-BBA), BHARTHANA, SURAT
VEER NARMAD SOUTH GUJRAT UNIVERSITY
SURAT

ACEDEMIC YEAR 2016-2017

 PREFACE

Why we are doing this?

The main purpose of doing the summer training is that we could learn the actual way to carry
on a business in a very effective manner.
 INDEX

Sr. No Topic Page

no

1 Introduction

2 Marketing & Sales Department

3 Production Department

4 Human Resource Department

5 Finance Department

6 Recommendations&
Suggestions

- Bibliography
 - Annexure

OVERVIEW OF THE INDUSTRY

1.1 Introduction to Soft Drink Industry
The main production of soft drink was stored in 1830s & since then from those experimental
beginning there was an evolution until in 1781, when the worlds first cola flavoured
beverage was introduced.

These drinks were called soft drinks, only to separate them from hard alcoholic drinks. This
drinks do not contains alcohol & broadly specifying this beverages, includes a variety of
regulated carbonated soft drinks, diet & caffeine free drinks, bottled water juices, juice
drinks, sport drinks & even ready to drink tea/coffee packs. So we can say that soft drinks
mean carbonated drinks.

1.2 History of Soft Drinks

1798:-The term "soda water" first coined.
1810:-First U.S. patent issued for the manufacture of imitation mineral water.
1819:-The "soda fountain" patented by Samuel Fahnestock
1835:-The first bottled soda water in the U.S
1850:-A manual hand & foot operated filling & corking device, first used for bottling soda water.
1851:-Ginger ale created in Ireland.
1861:-The term "pop" first coined.
1874:-The first ice-cream soda sold.
1876:- Root beer mass produced for public sale.
1881:-The first cola-flavoured beverage introduced.
1885:-Charles Aderton invented "Dr Pepper" in Waco, Texas.
1886:-Dr. John S. Pemberton invented "Coca-Cola" in Atlanta, Georgia.
1892:-William Painter invented the crown bottle cap.
1898:-"Pepsi-Cola" is invented by Caleb Bradham.
1899:- The first patent issued for a glass blowing machine, used to produce glass bottles.
1913:-Gas motored trucks replaced horse drawn carriages as delivery vehicles.
1919:-The American Bottlers of Carbonated Beverages formed.
1920:-The U.S. Census reported that more than 5,000 bottlers now exist.
Early 1920's:-The first automatic vending machines dispensed sodas into cups.
1923:-Six-pack soft drink cartons called "Hom-Paks" created.
1929:-The Howdy Company debuts its new drink "Bib-Label LithiatedLemon-Lime
Sodas" later called "7 up". Invented by Charles Leiper Grigg.
 1934:-Applied colour labels first used on soft drink bottles, the coloring was baked on the
face of the bottle.
1952:-The first diet soft drink sold called the "No-Cal Beverage" agingerale sold by
Kirsch.
1957:-The first aluminium cans use.
1959:-The first diet cola sold.
1962:-The pull-ring tab first marketed by the Pittsburgh Brewing Company of Pittsburgh, PA.
The pull-ring tab was invented by Alcoa.
1963:-The Schlitz Brewing Company introduced the "Pop Top" beer can to the nation in
March, invented by Ermal Frazee of Kettering, Ohio.
1.3 A Brief Insight - The FMCG Industry in India

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) is
products that have a quick turnover and relatively low cost. Consumers generally put less
thought into the purchase of FMCG than they do for other products.

The Indian FMCG industry witnessed significant changes through the 1990s. Many players
had been facing several problems on account of increased competition from small and
regional players and from slow growth across its various product categories. As a result, most
of the companies were forced to revamp their product, marketing, distribution and customer
service strategies to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG industry had changed
significantly. With the liberalization and growth of the Indian economy, the Indian customer
witnessed an increasing exposure to new domestic and foreign products through different
media, such as television and the Internet. Apart from this, social changes such as increase in
the number of nuclear families and the growing number of working couples resulting in
increased spending power also contributed to the increase in the Indian consumers' personal
consumption.

The realization of the customer's growing awareness and the need to meet changing
requirements and preferences on account of changing lifestyles required the FMCG
producing companies to formulate customer-centric strategies. These changes had a positive
impact, leading to the rapid growth in the FMCG industry. Increased availability of retail
space, rapid urbanization, and qualified manpower also boosted the growth of the organized
retailing sector.

HLL led the way in revolutionizing the product, market, distribution and service formats of
the FMCG industry by focusing on rural markets, direct distribution, creating new product,
distribution and service formats. The FMCG sector also received a boost by government led
initiatives in the 2003 budget such as the setting up of excise free zones in various parts of the
country that witnessed firms moving away from outsourcing to manufacturing by investing in
the zones.

Though the absolute profit made on FMCG products is relatively small, they generally sell in
large numbers and so the cumulative profit on such products can be large. Unlike some
industries, such as automobiles, computers, and airlines, FMCG does not suffer from mass
layoffs every time the economy starts to dip. A person may put off buying a car but he will
not put off having his dinner.

Unlike other economy sectors, FMCG share float in a steady manner irrespective of global
market dip, because they generally satisfy rather fundamental, as opposed to luxurious needs.
The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian
Economy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is
the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth
Rs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides up
to 4 million jobs.

The FMCG sector consists of the following categories:

1.3.1 Personal Care
Oral care, Hair care, Wash (Soaps), Cosmetics and Toiletries, Deodorants and
Perfumes, Paper products (Tissues, Diapers, Sanitary products) and Shoe care; the
major players being; Hindustan Lever Limited, Godrej Soaps, Colgate, Marico, Dabur
and Procter & Gamble.

1.3.2 Household Care

Fabric wash (Laundry soaps and synthetic detergents), Household cleaners
(Dish/Utensil/Floor/Toilet cleaners),Air fresheners, Insecticides and Mosquito
repellents, Metal polish and Furniture polish; the major players being; Hindustan
Lever Limited, Nirma and Ricket Colman.

1.3.3 Branded and Packaged foods and beverages

Health beverages, Soft drinks, Staples/Cereals, Bakery products (Biscuits, Breads,
Cakes), Snack foods, Chocolates, Ice-creams, Tea, Coffee, Processed fruits, Processed
vegetables, Processed meat, Branded flour, Bottled water, Branded rice, Branded
sugar, Juices; the major players being; Hindustan Lever Limited, Nestle, Coca-Cola,
Sosyo, Cadbury, Pepsi and Dabur.

1.3.4 Spirits and Tobacco The major players being; ITC, Godfrey, Philips and UB
1.4 A Brief Insight - Beverage Industry in India
In India, beverages form an important part of the lives of people. It is an industry, in
which the players constantly innovate, in order to come up with better products to gain
more consumers and satisfy the existing consumers.
 Beverages

Non-
Alcoholic
alcoholic

Non-
Carbonated
carbonated

Cola Non-cola Non-cola

Fig 1.1 Beverages in India

The beverage industry is vast and there various ways of segmenting it, so as to cater the right
product to the right person. The different ways of segmenting it are as follows:

Alcoholic, non-alcoholic and sports beverages.

In-home consumption and out of home on premises consumption.
Age wise segmentation i.e. beverages for kids, for adults and for senior citizens.
Segmentation based on the amount of consumption i.e. high levels of consumption
and low levels of consumption.

If the behavioural patterns of consumers in India are closely noticed, it could be observed that
consumers perceive beverages in two different ways i.e. beverages are a luxury and that
beverages have to be consumed occasionally. These two perceptions are the biggest
challenges faced by the beverage industry. In order to leverage the beverage industry, it is
important to address this issue so as to encourage regular consumption as well as and to make
the industry more affordable.

Four strong strategic elements to increase consumption of the products of the beverage
industry in India are:

The quality and the consistency of beverages needs to be enhanced so that consumers
are satisfied and they enjoy consuming beverages.
The credibility and trust needs to be built so that there is a very strong and safe feeling
that the consumers have while consuming the beverages.
Consumer education is a must to bring out benefits of beverage consumption whether
in terms of health, taste, relaxation, stimulation, refreshment, well-being or prestige
relevant to the category.
Communication should be relevant and trendy so that consumers are able to find an
appeal to go out, purchase and consume.

The beverage market has still to achieve greater penetration and also a wider spread of
distribution. It is important to look at the entire beverage market, as a big opportunity, for
brand and sales growth in turn to add up to the overall growth of the food and beverage
industry in the economy.
 OVERVIEW OF THE COMPANY
2.1 Introduction
The brand name SOSYO was derived from the Latin word Socious which is related to
society. From Socio it gradually evolved in to SOSYO, a distinctive thirst quencher with a
unique taste that defies definition and has been relished over generations.

The brand has been given a new, contemporary look ever since its repositioning as a
specialty drink in January 2010 with the catchy base line Apna Desh Apna Drink.
Besides SOSYO Hajooris has other brands like, Kashmira Jeera Masala Soda, Lemee
Lemon, Orange flavour, Ginlim Soda-a gingerly lemon flavour and Hajooris plain Soda.

The various packing includes 200ml, 300ml. in the glass bottles and 350 ml, 500ml. and 1.5
litres in Pet take away and special packing in 300ml. glass bottles pet take away for exports.
Hajoori and Sons has over 100 flavours.
2.2 History

The Foundation was laid when a young boy in his teens Abbas Abdul Rahim Hajoori began
his career selling aerated drinks made by various British Bottlers. Young Hajoori had the
tremendous vision to prove the competence of Indian brands VIS a- VIS foreign brands.

It was this vision that laid the foundation of a new era in the Indian soft drink industry in the
form of Hajoori & Sons which later came out with one of the phenomenal brands in India-
SOSYO.

Mr. Abbas Abdul Rahim Hajoori Mr. Mohsin Abdul Rahim Hajoori

Since, 1923 saw the foundation of Hajoori & Sons in Surat, Gujarat; but fate did not deem to
let the founder enjoy the success. The reins were taken over by Mr. Mohsin Abdul Rahim
Hajoori, after the untimely demise of his elder brother. He did not have to look back since
then. With the renewed vigor of the next generation, the business reached new heights in the
70s and 80s. Today SOSYO has become a formidable brand and is all set grow further.
2.3 Vision
With A stronger base of over 50,000 retailer outlet, 5 sophisticated manufacturing plants (4 in
Gujarat and 1 in Mumbai) seven franchises and over 150 distributors network, Sosyo is now
looking for trade to share its vision. Sosyo Now has a vision to grow as a National Brand
through Franchising Network with 40 Manufacturing Franchisees all over India.

2.4 Mission
Our mission is to build over selves a full fledge beverages company having an exceptional
hold on peoples taste. With is unique and exclusive flavour.

2.5 Exports
Hajoori and Sons is gradually expanding its network to various countries. In our first attempt
of expansion, we have established a reputed name in Canada, UK, Australia, and other
countries with contract filling in the USA.

Our Brand: Sosyo, Kashmira, Lemee (Orange, Lemon, and Ginlim) and Soda are available in
various departmental stores of UAE, and various other cities of UK, USA, Canada, New
Zealand and Africa. Very soon franchise will set up plants in the USA, UK, Canada and other
countries.

2.6 Quality Approval

Customer satisfaction is our sole motto. Our definition of customer includes every person
who comes in the business with us. We understand that our market and our industry are fast
changing and we accept that change brings the opportunity to grow and improve.

That's why we are proactive in realizing new ideas and encouraging innovation in everything
we do. We operate our business in the same way we lead our personal lives. We are honest,
open and generous. This is a moral choice - but it is also a commercial imperative. Our
market reputation depends on how we behave. To maintain the trust and confidence of our
customers, suppliers, colleagues and employees, we act with integrity at all times. And by
acting with integrity, we in turn get the best from others.
We recognize the importance of individuals and value their contribution. We are all team
members and yet retain a strong personal accountability - and so we recognize and reward
both individual and collective achievement in order to encourage further and greater
achievement in the future.

2.7 Franchisee Network

Sosyo is now looking for business partners to share its vision. The profile we are looking for
is growth desirous, progressive with an open mind and ready to take on the challenges.

What we offer is full technical support and guidance in erection and commissioning of the
plant in selection and training of man power, advertising and marketing support and of course
world class specialty products.

Franchisee Network
Sosyo Product - Mumbai Branch of Hajoori & Sons
Indian Square Beverages Ahmadabad
Giriraj Beverages Rajkot
Kanchan Bottling Porbander
Blue Spring Beverages Pvt.Ltd - Palej

2.8 Setups
Hajoori and Sons has a fully automated state- of-the-art plant in Surat, Gujarat. To cater to its
demands in every district, cities, town and villages the company has setup plants in Mumbai,
Surat, Vadodara, another in Rajkot to cater to surendranagars, Kachchh Ahmadabad, Rajkot,
and Porbander. To cater to the demands in the U.S market the company has setup contract
filling in 2 major places in the U.S.

2.9 New Setup

We are also planning to set up our manufacturing capacity at Jaipur and Indore for which
active planning is going on.
 2.10 BLUE SPRING BEVERAGES PVT.LTD
Blue Spring Beverages Private Limited is a Private incorporated on 23rd January 2013. It is
classified on Non-govt company and is registered at Registrar of Companies, Ahmedabad. Its
authorized share capital is Rs. 32,500,000 and its paid up capital is Rs. 31,341,000. It is
involved in Manufacture of beverages.

Blue Spring Beverages Private Limiteds Annual General Meeting (AGM) was last held on
30th September 2016 and as per records from Ministry of Corporate Affairs (MCA), its
balance sheet was last filed on 31st March 2016.

Directors of Blue Spring Beverages Private Limited are Kirit Harivandanbhai Kaji, Viral
Ashwinbhai Patel, Rajeshbhai Ishwarlal Panchal, Tejaskumar Vaasantlal Patel, Krunal
Ashokbhai Nimavat, Miteshkumar Pankajbhai Kaji and Tejash Prakashchandra Mistry.

Blue Spring Beverages Private Limiteds Corporate Identification Number is (CIN)

U15500GJ2013PTC073443 and its registration number is 73443. Its Email address is
bluespringsosyo@gmail.com and its registered address is 34, NEW SAURABH SOCIETY
MORABHAGAL, RANDER SURAT Surat GJ 395005 IN,-,.

2.11 Contact
Blue Spring Beverages Private Limited

34, New Saurabh Society Morabhagal,

Rander Surat

Ph. No +91-97235 54010, 0261-2762508

Email: bluespringsosyo@gmail.com
OVERVIEW OF THE COMPETITORS
3.1 Competitors
Blue Spring PepsiCo Coca Cola Heman Goldi
Beverages

Sosyo Pepsi Coke Limey Goldi

Kashmira Miranda Thumps Up Orange G3
Lemee 7 Up Fanta Misty Zira-Sip
Hajoori Soda Mountain Dew Sprite Masala Soda Leeme
Sosyo Soda Slice Kinley Orange
Maaza

PepsiCo : PepsiCos mission is to be the worlds premier consumer products company

focused on convenient foods and beverages. They seek to produce healthy financial rewards
to investors as they provide opportunities for growth and enrichment to employees, business
partners and the communities in which they operate.

This Code of Conduct applies to PepsiCo, its subsidiaries throughout the world, joint
ventures over which PepsiCo has management control and to every employee, officer and
director of these companies.

Coco Cola : The Coca-Cola Company is the world's largest beverage company and owner of the world's
most recognised trademarks and bestselling soft drinks. The latter is available in more than
195 countries. Coca-Cola has 47% of the worldwide market share in soft drinks 80% of its
earnings come from outside North America. In May, 1886, Coca Cola was invented by Doctor John
Pemberton a pharmacist from Atlanta, Georgia.

Heman :

COMPETITORS PRICES
Blue Springs Beverages Pvt.Ltd

200 Ml (24) 300 Ml (24) 500 Ml (24) 1.5 Ltr (9)

Sosyo 120 164 396 315

Kashmira 120 164 396 315
Lemee 120 164 396 315
Hajoori Soda - 84 210 180
Sosyo Soda - 72 - -

PepsiCo

200 ml (24) 300 ml (24) 500 ml (24) 1.5 Ltr (12)

Pepsi 148 216 451 476

Miranda 148 216 451 482
7 Up 148 216 451 482
Mountain Dew 148 216 451 482
Slice 148 216 451 482

Coca-Cola

200 ml (24) 300 ml (24) 500 ml (24) 1.5 Ltr (12)

Coke 125 216 451 482

Thumps Up 125 216 451 482
Fanta 125 216 451 482
Sprite 125 216 451 482
Kinley - 126 261 482
Maaza 125 216 565 482
Goldi

200 ml (24)

Goldi 50
G3 96
zira-sip 96
Leeme 50
Orange 50

Heman

200 ml (24) 300 ml (24)

Limey 96 144
Orange 96 144
Misty 96 144
Masala soda 96 144

The figure mentioned in bracket along with the size is the number of bottles in each carat.

The margin given to the retailer is 50ps to 75ps by the multinational company and the local
company gives 75ps to 1 Rs. The salesmen are given commission of 1.50 Rs. on selling of
each carat. Even the distribution channel of the competitor company is more or less same as
this company.

Competitors of Blue Spring Beverages Private

Limited Near Surat
Company 3Ci
Score

Universal Confectionery And Food Products Private Limited 67

Sana Beverages Private Limited 5
Jai Matadi Vegetables Private Limited 37
Alcon Beverages Private Limited 12
Red Rose Beverages Private Limited 23
Lifeline Mineral Water Private Limited 45
Pentacool Soft Drinks Private Limited 51
Lancer Spices Private Limited 18
New-Gujarat Cola Private Limited 51
Annapurna Nature Oils Private Limited 13
Usha Homely Foods Private Limited 23
Somanda Vineyards & Resorts Private Limited 66
Vi-chi Beverages Private Limited 26
Satpuda Wines And Beverages Private Limited 36
Zero Bac Beverages (India) Private Limited 51
Hush Beverages Private Limited 25
Rajavir Food & Soft drink Private Limited 16
Nimbus Beverages Private Limited 67

3Ci Score

3Ci Score for Blue Spring Beverages Private Limited is 50 out of

100 which is considered Average in Industry.
Blue Spring Beverages Private Limited is 395th best company in
India which is involved in National Industrial Classification Code
15500, while there are 22 companies rated inferior than Blue
Spring Beverages Private Limited.
 This company is ranked 399 out of 1047 in India for its parent line
of business (National Industrial Classification Code 1550).
Score calculated using the 3Ci Score 1.0 model, this score ranges
from 0 to 100 and measures overall strength of corporation. Scores
are calculated using customer satisfaction index, popularity and
various publicly available data.
Blue Spring Beverages Private Limited started in 2013 i.e.,
company is 2 year old.
Average age for main line of business (National Industrial
Classification Code 15500) is 7 years i.e., this company is 5 year
younger than its main industry.
Average age for parent line of business (National Industrial
Classification Code 15500) is 7 years i.e., this company is 5 year
younger than its parent industry.
Average age for top line of business (Manufacture of beverages) is
14 years i.e., this company is 12 year younger than its top level
industry.
Out of 1043 companies, Blue Spring Beverages Private Limited is
758th oldest company which is primarily involved in National
Industrial Classification Code 15500 in India.
Out of 30 companies, Blue Spring Beverages Private Limited is
19th oldest company which is primarily involved in National
Industrial Classification Code 15500 in Gujarat.

Blue Spring Beverages

Private Limited
Profile
Corporate Identification Number U15500GJ2013PTC073443
Company Name Blue Spring Beverages Private Limited
Year of Foundation 2013
Registrar of Companies RoC-Ahmedabad
Registration Number 073443
Top Line of Business Manufacture of Beverages
Principal business activity Manufacturing (Food stuffs)
Company Category Company Limited by Shares
Company Sub Category Indian Non-Government Company
Class of Company Private
Office Address 34, NEW SAURABH SOCIETY
MORABHAGAL, RANDER SURAT
Gujarat INDIA 395005
State Gujarat
Authorized capital (in Rs) 32500000
Paid up capital (in Rs.) 31341000
Date of Incorporation 23/01/2013
Company Status (for eFiling) ACTIVE

MARKETING AND SALES DEPARTMENT

4.1 Introduction of the Marketing Department:-

Definition of Marketing Department :-

Marketing Management is an art and science

 of choosing target market and getting, keeping
and growing customers through creating,
communicating and delivering superior customer
value.

People are surprised when they hear that the most important part of marketing is not selling!
Selling is not only the tip of the marketing iceberg.

The marketing concept holds that the key to achieving its organizational goals consists of the
company being more effective than competitors in creating, delivering and communicating
superior customer value to its chosen target market.

4.2 Structure of Marketing Department :-

Marketing
Manager

Sales Sales
Sales Men
Executive Supervisor

A marketing manager formulates a firm's marketing strategy. With the assistance of a

marketing or sales team, a marketing manager estimates demand for and identifies markets
for the company's or organization's products and services. A marketing manager and his or
her team also set prices with an eye toward maximizing profits, increasing market share and
keeping customers happy.
Sales executive are the key point of contact between an organisation and its clients:
answering queries, offering advice and introducing new products. Their work includes:
organising sales visits. Demonstrating and presenting products.

Sales supervisor assist the sales manager in achieving sales goals and objectives usually by
implementing and revising sales strategies and by directing and motivating sales team. This
are vital for almost every aspect of the job: communicating with customers, with sales
manager and representatives, with third party etc,.

Sales men bridge the gap between customer need and product/service that fulfils their need.
This is often an attractive aspect for customers, a they may view the salesman as the expert,
which builds credibility and therefore trust.

4.3 Major Functions of Marketing Department:-

Marketing is related to the exchange of goods and services. Through its medium the goods
and services are brought to the place of consumption. This satisfies the needs of the
customers. The following activities are undertaken in respect of the exchange of goods and
services:

1. Gathering and Analysing Market Information:

Gathering and analyzing market information is an important function of marketing. Under
it, an effort is made to understand the consumer thoroughly in the following ways:

(a) What do the consumers want?

(b) In what quantity?

(c) At what price?

(d) When do they want (it)?

(e) What kind of advertisement do they like?

(f) Where do they want (it)?

What kind of distribution system do they like? All the relevant information about the
consumer is collected and analysed. On the basis of this analysis an effort is made to find
out as to which product has the best opportunities in the market.

2. Marketing Planning:
In order to achieve the objectives of an organisation with regard to its marketing, the
marketeer chalks out his marketing plan. For example, a company has a 25% market share of
a particular product.

The company wants to raise it to 40%. In order to achieve this objective the marketer has to
prepare a plan in respect of the level of production and promotion efforts. It will also be
decided as to who will do what, when and how. To do this is known as marketing planning.

3. Product Designing and Development:

Product designing plays an important role in product selling. The company whose product is
better and attractively designed sells more than the product of a company whose design
happens to be weak and unattractive.

In this way, it can be said that the possession of a special design affords a company to a
competitive advantage. It is important to remember that it is not sufficient to prepare a design
in respect of a product, but it is more important to develop it continuously.

4. Standardisation and Grading:

Standardisation refers to determining of standard regarding size, quality, design, weight,
colour, raw material to be used, etc., in respect of a particular product. By doing so, it is
ascertained that the given product will have some peculiarities.

This way, sale is made possible on the basis of samples. Mostly, it is the practice that the
traders look at the samples and place purchase order for a large quantity of the product
concerned. The basis of it is that goods supplied conform to the same standard as shown in
the sample.

Products having the same characteristics (or standard) are placed in a given category or
grade. This placing is called grading. For example, a company produces commodity X,
having three grades, namely A. B and C, representing three levels of quality; best,
medium and ordinary respectively.

Customers who want best quality will be shown A grade product. This way, the customer
will have no doubt in his mind that a low grade product has been palmed off to him. Grading,
therefore, makes sale-purchase easy. Grading process is mostly used in case of agricultural
products like food grains, cotton, tobacco, apples, mangoes, etc.

5. Packaging and Labelling:

Packaging aims at avoiding breakage, damage, destruction, etc., of the goods during transit
and storage. Packaging facilitates handling, lifting, conveying of the goods. Many a time,
customers demand goods in different quantities. It necessitates special packaging. Packing
material includes bottles, canister, plastic bags, tin or wooden boxes, jute bags etc.

Label is a slip which is found on the product itself or on the package providing all the
information regarding the product and its producer. This can either be in the form of a cover
or a seal.

For example, the name of the medicine on its bottle along with the manufacturers name, the
formula used for making the medicine, date of manufacturing, expiry date, batch no., price
etc., are printed on the slip thereby giving all the information regarding the medicine to the
consumer. The slip carrying all these is details called Label and the process of preparing it as
Labelling.

6. Branding:
Every producer/seller wants that his product should have special identity in the market. In
order to realise his wish he has to give a name to his product which has to be distinct from
other competitors.

Giving of distinct name to ones product is called branding. Thus, the objective of branding is
to show that the products of a given company are different from that of the competitors, so
that it has its own identity.
For instance, if a company wants to popularise its commodity X under the name of 777
(triple seven) then its brand will be called 777. It is possible that another company is selling
a similar commodity under AAA (Triple A) brand name.

Under these circumstances, both the companies will succeed in establishing a distinct identity
of their products in the market. When a brand is not registered under the trade Mark Act,
1999, it becomes a Trade Mark.

7. Customer Support Service:

Customer is the king of market. Therefore, it is one of the chief functions of marketer to offer
every possible help to the customers. A marketer offers primarily the following services to
the customers:

(i) After-sales-services

(ii) Handling customers complaints

(iii) Technical services

(iv) Credit facilities

(v) Maintenance services

Helping the customer in this way offers him satisfaction and in todays competitive age
customers satisfaction happens to be the top-most priority. This encourages a customers
attachment to a particular product and he starts buying that product time and again.

8. Pricing of Products:
It is the most important function of a marketing manager to fix price of a product. The price
of a product is affected by its cost, rate of profit, price of competing product, policy of the
government, etc. The price of a product should be fixed in a manner that it should not appear
to be too high and at the same time it should earn enough profit for the organisation.

9. Promotion:
Promotion means informing the consumers about the products of the company and
encouraging them to buy these products. There are four methods of promotion: (i)
Advertising, (ii) Personal selling, (iii) Sales promotion and (iv) Publicity. Every decision
taken by the marketer in this respect affects the sales. These decisions are taken keeping in
view the budget of the company.

10. Physical Distribution:

Under this function of marketing the decision about carrying things from the place of
production to the place of consumption is taken into account. To accomplish this task,
decision about four factors are taken. They are: (i) Transportation, (ii) Inventory, (iii)
Warehousing and (iv) Order Processing. Physical distribution, by taking things, at the right
place and at the right time creates time and place utility.

11. Transportation:
Production, sale and consumption-all the three activities need not be at one place. Had it been
so, transportation of goods for physical distribution would have become irrelevant. But
generally it is not possible. Production is carried out at one place, sale at another place and
consumption at yet another place.

Transport facility is needed for the produced goods to reach the hands of consumers. So the
enterprise must have an easy access to means of transportation.

Mostly we see on the road sides private vehicles belonging to Pepsi, Coca Cola, LML,
Britannia, etc. These private carriers are the living examples of transportation function of
marketing. Place utility is thus created by transportation activity.

12. Storage or Warehousing:

There is a time-lag between the purchase or production of goods and their sale. It is very
essential to store the goods at a safe place during this time-interval. Godowns are used for
this purpose. Keeping of goods in godowns till the same are sold is called storage.

For the marketing manager storage is an important function. Any negligence on his part may
damage the entire stock. Time utility is thus created by storage activity.
4.4 Product Mix and its various brand:-
A product mix (also called a product assortment) is the set of all products offered by a firm.
Particular seller offers for Sale. A product mix consists of various product lines. It is the full
of products a company produces to market.

With success in soft drink markets, Blue Springs Beverages has developed into a full
spectrum Soft Drinks Company with a variety of products. We dont call these as mere
products but tastes of people. Our products are:

1) Sosyo

The oldest and one and only all Indian fizz drink. For decades, it has retained its unique taste
and rules hearts of millions. Sosyo is the only indigenously made soft drink in India. People
feel Sosyo tastes like alcohol, but it is not. Sosyo is a cider-type fruit drink made of heady
apple and grape cocktail that packs quite a punch when has absolutely chilled.

Sosyo Soda Logo Sosyo Soda Bottle

Its a non- cola its different having a unique taste. Its a mixed fruit flavor.
2) Kashmira Soda

Jeera masala soda is very popular among people as a digestive drink has a different
satisfaction after a heavy meal. Kashmira is traditional Indian Spicy flavor having many
spices. It has an Authentic -Ethnic, Taste
which also helps indigestive. Digestive
hub), especially with people who eat
rich, oily and spicy foods.

Kashmira Soda Logo Kashmira Soda Bottle

3) Lemee

There are 2 flavors available in Lemee

soft drinks which are
Lemee Logo

Lemee Orange

Lemee Orange with orange tangy

Flavor, its cool Tangy Soothing

 Lemee
Misty

Lemee Misty a cloudy

lemon-n-lime
flavored a good thirst
quencher contains
vitamin C good for
health.

4) Hajoori Soda

The soda with extra sparkle, extra bubbles, extra power-

refreshing on its own, great in company.
 Hajoori Soda Bottle Hajoori Soda Logo

In a nutshell, its (Sosyo) product can be described as-

SOSYO: a unique combination of natural ingredients-a great taste sensation;

LEMME MISTY: a tangy lemon-n-lime flavored thirst quencher with vitamin C;
LEMME ORANGE: with orange flavor, soft and cool;
KASMIRA: the only Masala Soda-a spicy appetizer-cum-digestive.

People sees the name of Sosyo and considers it as a company but they dont know that Sosyo
is just a brand and its main company is Hajoori & Sons Company.

4.5 Packaging & Labeling :-

Packaging :
Packaging is the technology of enclosing or protecting products for distribution, storage, sale,
and use. Packaging also refers to the process of designing, evaluating, and producing
packages. Packaging can be described as a coordinated system of preparing goods for
transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves,
transports, informs, and sells In many countries it is fully integrated into government,
business, institutional, industrial, and personal use.

Packaging is defamed as all activities of designing and producing the container of the
product. Most of the packaging includes up to three levels of materials. People at Sosyo
believe that packages can build brand equity and drive sales. The packages are buyers first
encounter with product and it must be capable of turning on or off. Packaging also affects the
consumers later product experiences.

Sosyo soft drink comes in a bottle, which is the primary pack. In case of the local distribution
the bottles are being sold directly but for the outside sales it comes in the crates and each
crates contains 24 bottles. The bottles are packed by pressurized crowns. And in the case of
overseas sales they use cardboard box. And each cardboard box contains 12 bottles. This
cardboard box is packed into the corrugated box containing six dozen boxes.
The use packages with the attractive graphics and logos showing the product information and
specialized features so that the customer can pick the product according to his needs. The
packages also contain some special trademarks and copy righted logos so the initiators cant
copy the product. The brand and logo of Sosyo is as shown under:

The various packaging include 200ml; 500ml; 300ml in glass bottles (returnable) and 500ml
and 1.5ltr in PET segment (non-returnable).

Labelling :
Label is a part of product, which carries verbal information about the product or the seller.
It may be a part of package, or it may be a tag attached directly to the product. In short it
contains detailed information about a Product.

Label may be a simple tag attached to the product or an elaborated graphic that is part of
package. It might carry only the brand name, or a great deal of information. Even if the seller
prefers a simple label, the law may require more.

According to the marketing manager of the Sosyo the labels are important tools to market
their product in the following ways.

It identifies the product and the brand name SOSYO

It grades the product in several categories.
It describes the special features of the product.

Sosyo uses plastic labels to promote the product. They use this label for the PET bottles and
for glass bottles they use printed logo of Sosyo as the brand label.

4.6 PLC Stage & its Marketing Strategies:-

Stage of PLC

1 Introduction
2 Growth
3 Maturity
4 Decline

A product life cycle means a typical pattern of development of life time sales of a product.
Product Life Cycle can be defined as a history of life time sale of a product from introduction
stage to decline stage.

Stage 1:- Introduction

Characteristics:-
It is the stage where product is new in the market and
awareness is less.
Large scale advertisement expenditure.
Customer is very few.
Sales is less.
Profit is less or incure loss.
Difficult to reach break even point.
Sales representative appointed.
Average cost is high.
Sales increase slowly.
This stage will be short if the product is consistent.

Strategies:-
Higher prices and high level of promotion expenditure.
High price and low promotional expenditure.
Low price and high promotional expenditure.
Low price and low promotional expenditure.

Stage 2:- Growth

Characteristics:-
Increase in the growth rate of sales and profit.
If the product is consistent, sales begin to increase.
Sales increase with the increase in production and average cost
of production declines.
Profit is at its highest level.

Strategies:-
Prices related, Place related, Promotion related, Product related.
Increase quality (product) even features.
Price- Change it at appropriate time.
Place- Find new channels of distribution or for wide market.
 Promotion- Intensify the treatment to build trust.
Stage 3:- Maturity

Characteristics:-
Sales growth continues but at declining stage.
Sales growth rate to the highest level.
This stage last longer.
Market becomes highly competitive.
Company can decrease the price to survive competition.

Strategies:-
Enter in new markets.
Increase the utility of the product.
Product should be improved.
Alteration should be made in the marketing mix.

Stage 4:- Decline

Characteristics:-
Sales begins to diminish.
The efforts of the producers do not bear the fruit.
Profit starts declining.

Strategies:-
Improve the quality and find weak products.
If the product is same, marketing strategies should be same.

PLC of Sosyo:-

Sosyo is in the maturity stage now.

It was the first product when they started the company and at this present stage it is at
the maturity stage.
It earns more and more profit at this time.
PLC of Kashmira:-

Kashmira at this time is at maturity stage.

The advertisement cost at this stage is very less.
It was first named as Jeera Kashmira Masala and now it is named as Kashmira Jeera
Masala.

PLC of Ginlim:-

Ginlim at this time is at growth stage.

A period of rapid market acceptance and substantial profit improvement.

PLC of Lemee:-

Lemee at this time is at growth stage.

A period of rapid market acceptance and substantial profit improvement.

PLC of Openers:-

Openers at this time is still at introduction stage.

It takes a lot of advertisement expenditure and promotional expenditure.
It is still unknown to the peoples and they are doing hard work to promote their
product.

There are some openers in this market which is produced by Blue Spring Beverages Pvt.Ltd.
and they are on introduction stage.

The advertisement and promotional expenditure are relatively very high then other products
of this company.

4.7 Segmentation, Targeting and Positioning:-

Consumer Segmentation
Business marks can be segmented with some variables used in customer market
segmentation, such as geography, benefits and usage rate. But business marketers also use
other variables.
Blue Spring Beverages is a soft drink company. It is medium scale company. The company
serves to middle class people and also to some of the upper class people. The company is not
serving only to some stores with which it has strong relationship quality and price. The
company serves those two need both quick and sudden delivery and services. The company
gives equal importance to large and small orders. The company serves to risk avoiding
customers. The company is serving to those who are loyal enough to their supplier and
customers.

Target Market

Target Marketing involves breaking a market into segments and then concentrating your
marketing efforts on one or a few key segments consisting of the customers whose needs and
desires most closely match your product or service offerings. It can be the key to attracting
new business, increasing your sales, and making your business a success.

The beauty of target marketing is that by aiming your marketing efforts at specific groups of
consumers it makes the promotion, pricing, and distribution of your products and/or services
easier and more cost-effective.

Indias middle class population is as big as entire USs population. The standard of living of
Indians has been steadily increasing. A suitable GDP growth of around 8%-9% is going to
take India into a different league in the coming years. The rise in disposal incomes of Indian
population is expected to spur demand for the most of the consumer goods. To take the
advantage of this consumer boom of the 21st century, Hajoori & Sons is embarking on a new
venture to make a dent in the city of Mumbai and then slowly expanding to the other parts of
the country.

4.8 Pricing methods adopted by the company for all product lines :-
Pricing Policy

Deciding the pricing policy is an important decision in any organization. As usual every firm
sets the price for its product or service whether it is manufacturing or service firm. Financial
managers with the help of the production and other department set up the price. Generally
pricing policy is decided after considering several factors.

Company decides per unit price of product by following formula:

 Variable Cost + Fixed Cost
Per Unit Price =
Unit Sales

Here, variable costs are raw material cost, administration cost, packing cost and distribution
cost.

Here, fixed costs are processing cost and machinery cost.

Price Setting

Prices are set by input valuation, considering production activity cost, cost of raw material,
buffer margin, other cost and profit margin. Sometimes due to uncertainty in sugar prices,
transportation cost, etc. costs also increases. To avoid such situation, the company keeps a
margin on its product prices before adding profit margin.

A lot of research regarding prevailing price of the product in market is done. Before deciding
price of the product, competitors price and offers also considered.

For example, on 500 ml bottle of Sosyo, 100 ml free. Once the company enters the
competitors area a long chain of customers is established.

Company offers discount to customers if they are competitors customers having a very good
relationship with the company. Price discount are based on sales volume i.e. number of
bottles a customer or agent or shopkeeper purchases. There is no fixed discount percentage
decided. Prices are mostly very stable. Frequent fluctuation does not occur, as it is a
competitive market. If a price of raw materials such as sugar increases, the company does not
increase its final price in spite of margin are reduced.

Customers need to advance before hand and remaining payment on the delivery of the
bottles. In case of good reputation of customers, the payment is delayed for a certain period
decided by the director. Hajoori & Sons give 15% credit period. The company holds a very
stable pricing policy with frequent fluctuations.
Prices of Different Product

Wholesale Price

Name\ml 200 ml/crate 300 ml/crate 500ml/box 1.5 ltr/box

Sosyo 156 204 460 360
Kashmira 132 204 460 360
Lemee 132 204 460 360
Hajoori Soda - 84 240 189

1 Crate = 24 Bottles

1 box of 500 ml = 24 pc

1 box of 1.5 ltr = 9 pc

Retail Price
Name\ml 200 ml 300 ml 500 ml 1.5 ltr
Sosyo 8 10 22 45
Kashmira 8 10 22 45
Lemee 8 10 22 45
Hajoori Soda - 5 12 25

From this price policy of company the retailers gets more profit around 1.5rs from each price
of any soft drink of Hajoori & Sons; which is quite good compare to other competitors.

4.9 Promotion Mix for All Product Lines:-

Promotion refers to sales promotion, advertising, Sales force. Public relation, direct
marketing, advertising is any paid form of non-personal presentation and promotion of ideas,
goods or services by an identified sponsor. All the soft drink Co. does advertising according
to
thei
r
suit
abil
ity.
Haj
oor
i&
Son
s
doe
s
adv
erti
sin
g in
the
form of Newspaper ads, ads in magazine, Ads on TV channel, etc. The multinational Co.
does satellite TV ads with celebrity, Newspaper, magazine ads, Banners, Hoardings, etc. The
local brands does give ads in newspaper, magazine. Etc.

Hajoori & Sons has made Sosyo Circle on Udhna Magdalla road for the purpose of
promoting their products. Also the Co. offers some free sample when they launch a new
product in the market. Even the multinationals offers a variety of short term incentives to
encourage trail or purchase of a product.

Hajoori & Sons organized and sponsor some events like Blood donation camp, Sports Day
program. Even the multinational Co. sponsor the Awards program, reality Shows on TV, etc.
For the purpose of direct marketing all the companies have their web-sites, E-mail id, and
telephone no. to contact or communicate directly with or solicit response or dialogue from
specific customers and prospects.

Banner advertising
Promotional & Advertising Policy

Blue Spring Beverages faces lot of competition. Each day the customers requirement, the
taste of the customer is changes. Although the company is very much old in the soft drink
industry, it has a promotion and advertisement to sells its product.

The company is using many policies to promote their product. They promote by advertising
in daily local newspaper such as Gujarat Mitra, local cable channels like city link, hind
channels, Samay channels and Eye witness. Now a days company is giving their products
advertising on the radio.

To promote the product the in any competitive market, any company has to establish good
relationship with the market and keep in touch with their respective industry such as soft
drink manufacturer has to be in touch with their industry. So the most effective way to
promote their soft drinks is by participating in exhibition or any fairs. They also promote their
product in local or national fairs like fairs in Surat, fairs in Bombay. Sosyo circle at the
Udhana Magdalla road is also one of its promotional activities. They also promote their soft
drink by supplying their soft drink in various international conventions held in Surat like
Giant club meeting.

Necessary information about different product is also on the companys website

www.sosyo-thesoftdrink.com. They can interact and get information by sending e-mail also.

The company also gives credit period to the customers after sales. They provide 5 days credit
period to their customers and 15 days credits period to their suppliers. The company has the
objectives of efficient performance and excellent quality which holds the good will of
company in promoting it. Company has led customer satisfaction as its foremost priority. It
also gives guidance to its customers if they are new to it. Thus a strong promoting policy is
backing the company.

For export advertising and promoting company use special type of packing to attract
customers and expense some money to make attractive labeling. Sometimes company gives
banners to their customers for advertising. In the interior region outside all the customers
Shop Company has done wall painting promoting various brand of the company.

Hajoori & Sons actively participate in a number of occasions ranging from Charity Shows,
Educational Activities and various other social activities.

As a part of companys brand promotion program and good corporate citizenship, company
regularly organize various contests and events such as Sosyo cricket tournaments in which
various teams from entire south Gujarat participate, Power-building competitions, Painting
competitions at school level, and various others.

Hajoori Company participated in Udyog 2002

 South Gujarat Beauty Contest

Sosyo has been active in sponsoring Navratri Dances

The heartbeat of Gujarat

4.10 Channel of Distribution for all product lines:-
Generally, Industrial channels tend to be shorter than consumer channels because of small
number of ultimate customers, the greater geographical concentration of industrial
consumers, and greater complexity of the product which requires close manufacturer
customer co-operation.

Channel of distribution is the chain through which the product of the company passes from
factory to final consumer so marketing channel performs the work of moving goods from
purchaser to consumers. Different companies are using different channels. It overcomes the
time, place and possession gap that separates goods from services for those who need or want
them. The company should have the flexible channel for distribution so that in future it can
be easily changes according to the requirement.

A marketing channel performs the work of moving goods from purchaser to customers. It
overcomes the time and possession gap that separates goods and services for those who need
or want them. The distribution channel of Hajoori & Sons in Surat city and parts of Gujarat
state is undertake by J.S. Distributors.

They gather information about potential and current customers, competitors and other
factor and forces in the environment.
They develop and distribute persuasive communications to stimulate purchasing.
They reach agreement on once and others terms so that transfer of ownership or
possession can be affected.
They place orders with manufactures. They acquire the funds to financial inventories at
different levels in the marketing channel.
They assume risks connected with carrying out channel work.
They provide for buyers payment of their bills through banks and other financial
institutions.
In communication channel they deliver and receive message from their buyers and in
service channel transaction is carried out with potential buyers. The channel of
distribution in Hajoori & Sons is of one-level channel. In one-level channel there is 1 only
one intermediary, the retailer. This is the best channel level to sell the products in the
rural markets
Structure of Place

Manufacturer

Distribution

Retailer Distribution Channel

Consumer

6.8.3.1 Distribution Network

Channel of distribution is the chain through which the product of the company passes from
factory to final consumers. For reaching target market various companies uses various kinds
of channel of distribution shows how faster, easier, cheaply and with minimum risk the
product reaches to the final consumer. The company should have flexible channel of
distribution so that in future it can be changed easily according to requirement. Company
uses three particular channels to reaches their target market.

1) Communication Channel

In communication channel they deliver and receive message from their target buyers. If any
party order or bulk order occurs then it receives through telephone and fax also. They also
receive their suggestion and follow if any important needed.
2) Distribution Channel

Company uses distribution to display sell or deliver the physical products or service to buyer
or user. They include distributors, retailers and franchises. Thus, it records whole concept of
distribution channels in Hajoori & Sons.

Zero Level Channels

This is also called direct marketing channel. It consists of a manufacturer selling directly to
the final consumer. Here company selling their products door to door. Here no intermediaries
between the manufacturer and consumer. Bulk orders are following under 0-level channel.

One Level Channel

A 1-level channel contains one intermediary such as retailer. Here company gives their
product to retailers and through retailers it goes to final consumers.

Two Level Channel (Export Channel)

2-level channels contain 2 intermediaries. In this type of channel franchisee and retailer are
two intermediaries. Company keeps their franchises in different place and sells their product
to retailers, through retailers it goes final consumers.
 0Level 1st Level 2nd Level

Manufacture Manufacture Manufacture

Retailer Franchisee

Consumer Consumer Retailer

Consumer

The company follows three types of distribution channel as 0-level, 1-level and 2-level
channel. In the 0-level channel the companys salesman directly sells the product to the
consumer at their home. In the 1-level distribution channel the salesman sells the products to
the retailer who thereafter sells to the end consumer. Here the salesman daily goes to the
retailer and consumer at their shops and home according to the routes.

In 2-level distribution channel the companys product is exported to the franchisee holder in
Dubai, Sharjah, Abu-Dhabi and various other cities of UAE, Lila, UK, USA, New Zealand
and Africa who thereafter sell to the retailer and to the end consumer. For Hajoori & Sons,
this is best because everything is managed by the company itself. As selling is done directly,
the company have its own salary paid and trained salesman at every place.

3) Service Channel

Hajoori & Sons also uses services channels to carry out transaction with potential users. This
service channels include warehouses, transportation, companies, banks, insurance companies
that facilitate transactions. Company also accepts cheques, draft from the potential buyers.

4.11 Customer Relation Management and Customer Support

Activities:-

Customer relationship management (CRM) is a term that refers to practices, strategies and
technologies that companies use to manage and analyze customer interactions and data
throughout the customer lifecycle, with the goal of improving business relationships with
customers, assisting in customer retention and driving sales growth. CRM systems are
designed to compile information on customers across different channels -- or points of
contact between the customer and the company -- which could include the company's
website, telephone, live chat, direct mail, marketing materials and social media. CRM
systems can also give customer-facing staff detailed information on customers' personal
information, purchase history, buying preferences and concerns.
4.1 Introduction
Production is the process of converting the raw material or the other inputs into the product
for the further production or the finished goods or services so at the utility of inputs is created
or enhanced and the needs of consumer are satisfied.

Example: the process of converting the raw materials such as water, Sugar, CO2, Crown,
Caustic Soda, Syrup, Carmon Color, Citric acid, etc. into finished good(SOSYO).
 Production
Department

Chief
Laboratory Forman Engineer
Chemist

Supervisor Diploma Expense

Assistant
Holder Holder
Laboratory
Chemist
Helper Laborer Helper Helper

Checking Washing

4.2 Organization Structure of Production Department

 Fig 4.1 Structure of Production Department

4.3 Raw Material

Raw materials are material which is used to manufacture finished goods.

Raw materials of Hajoori & Sons are water, Sugar, Syrup, Carbon dioxide, Caustic Soda,
Crown, Citric Acid, Carmon Color, Pre Form, Added flavors etc.

4.3.1 Sources of Raw Material

Water SMC

Local Market(shril Kastoor Chand, Ambika

Sugar Trading, Surat)

Carbon Dioxode Marfatia Agency, Surat

Crown Leo Tech, Bhojani Packaging, Rajkot

Glass Bottles Royal Glass & Ceramics, Mumbai

Caustic Soda Shree Ganesh, Surat

Carmon Colour Sayagi Synthetics, Surat

Citric Acid Bharat Starch, Vadodara

Pre Form Chemcho Ltd, Surat

Fig 4.2 Source of Raw Material

4.3.2 Production Process

Raw Material Washing Stage

Empty
Inspection Filling Stage
Stage

Filled
Capping Stage
Inspection

Final
Inspection

Fig 4.3 Production Process

4.3.2.1 Washing Stage

Production process starts with the loading of empty bottles in the washing machine. Before
that empty bottles are taken from the carat and are placed on the conveyor which reaches the
washing machine bottles are arranged properly and enters the machine in lots of 10 bottles. In
the washing machine bottles are passing through 4 compartments.

In the 1st compartment all the dust and sand is removed with plain water.

In the 2nd compartment the oil, bacteria, etc are removed with chlorine water.

In the 3rd compartment bottles gets washed with caustic solution.

In the 4th compartment the second time bottles are washed with plain water.

After the bottles are washed, they are moved for the next stage.

4.3.2.2 Inspection Stage

In the stage, the 2 time bottles are inspected.

1st time the empty bottles are inspected.

2nd time filled inspection is done.

If any defect is found then the bottles is disposed and other bottles are allowed to move for
the next stage.

4.3.2.3 Filling and Capping Stage

The filling and sealing of bottles is done on filling and crimping machine. It is a combined
activity. The bottles are conveyed to filler machine on conveyor. The filler machine keeps on
revolving. It fills the beverage in the bottles and sends it to crimping machine where the
bottles are sealed with a crown. If the operator finds the improper level, he level the bottles
manually and let go the bottles for crowning and then for the next stage.

4.3.2.4 Final Inspection Stage

After crowning the bottles are checked again whether there is any dirt left. One person checks
the bottles after crowning in light. If any impurity is found the bottle is immediately disposed
off and rests of the bottles are sends at store.
Types of layout

Process layout

Product layout

Fixed position layout

Cellular manufacturing layout

Combination layout

---Product layout

Also known as straight line layout or layout for serialized manufacturing.

Materials are fed into first machine and finished product come out of the last machine
In between finished goods travels automatically from machine to machine.

The output of one machine became input for the second machines.

---Process Layout

Also known as functional layout or batch production or job shop layout..

Process layout involves a grouping together or like machines in one department. (For e.g.
Drilling machine in drilling dept casting machine in casting department, etc)

Process arrangement is done by grouping together of like machine based on that operational
characteristics.

---Fixed position layout

Also known as static layout.

Fixed Position layout involves the movement of man & machines to the product which
remains stationary.

In this type of layout material or major component remains at a fixed locations and tools,
machinery and man as well as other pieces of material are brought to this location.

---Combination layout

Also known as hybrid layout.

It is a combination of product & process layout.

And it is very useful in most of industrial companies to get the advantage of product and
process layout.

--- Cellular manufacturing layout

Also known as group technology.

In this layout machines are grouped in cell and cells function somewhat like Product layout
within a large shop.

In Cellular layout Lower work in progress inventories reduce material handling cost, Shorter
flow time, Simplified production planning, and facilitating quick setup.
Material Handling equipment:

The company uses different types of material handling equipment like Conveyors, Trolley,
Pipelines, Carats and Trucks. It can be further explained as below:

4.6.1 Conveyor

The company has different types of conveyors to carry the bottles to be processed into
different machines. Right from starting of production process the bottles are moved to the
next process through conveyor. Company has motor driven conveyor that has one metallic
belt on the rolling wheels and those conveyor that works on gravity i.e. no electric motor is
needed to run them.

4.6.2 Pipelines

Pipeline is also treated as material handling equipment as it carry and gaseous material. It is
used to transfer the carbon dioxide from cylinder in the manufacturing unit where it is
compressed to make it in the liquid form, then to shift it in the mixer where all the materials
are mixed and then the final liquid is prepared separately is brought from the main syrup tank
to small tank and then to filler machine through pipeline.

4.6.3 Trolleys

Trolleys are mainly used for transferring heavy carats with bottles from the store to the
trucks. Also when the carats are unloaded from trucks and moved from one place to another
trolley is used. For convenience trolleys are manually run by workers to carry heavy loads.

4.6.4 Carats

Carats are a very important material handling equipment as it is used to carry the bottles in
the lot of 24. Carats are mainly used for safety purpose so as to prevent the breakage of
bottles. So when the bottles are to be taken from one place to another it is kept in carats and
then taken. It is also convenient to carry bottle in group.

4.6.5 Trucks

Trucks can also be considered as the material handling equipment as it is used for
transporting finished products. They carry carats from manufacturing place to the whole
sellers and retailers and also to the port for the export through steamers in the foreign
countries.

Production Scheduling:-

Production scheduling is the management and allocation of resources, events and processes to
create goods and services. A business adjusts its production schedule based on the availability
of resources, client orders and efficiencies. The goal of production scheduling is to balance
client needs with available resources while operating in the most cost-efficient manner.
Inventory Control:-
Inventory Objectives:
o To minimize the idle time caused by shortage of
inventory and inventory Availability of inventory.
o To keep down capital investment in inventories.
Inventory carrying cost and obsolescence losses.

Inventory Models:-
a. EOQ(Economic Order Quantity):-
One of the major
inventory problem to be resolved is how much
inventory should be added when inventory is
replenished. If the firm is buying raw materials,it has
to decide lots in which it has tobe purchased on cash
replenishment.

If the firm is planning production as per schedule.

These problems are called order quantity problem ans
task of the firm to determine optimum inventory level
involves two types of costs:
(1)Ordering Cost:
The term ordering cost is used in case of raw
material and includes the entire costs of acquiring raw
materials .They include costs incurred in the following
activities .Requisitioning,purchase ordering,transport
receiving ,inspecting and storing ,ordering cost increase in
proportion to the number of orders placed the critical and staff
costs,however,dont vary in proportion to the number orders
placed and one view is that so long as they are committed
costs they need not to be revoked in computing ordering cost.
(2)Carrying Cost:
Cost incurred for maintaining a given level
of inventory are called carrying cost,they include storage,
insurance, taxes, deterioration and obsolescences.
Formula:

b. ERLQ(Economic Run Light Quantity):-

In certain organizations rather than relying on
suppliers they manufacture few critical inputs by their
own. Obvously there is reduction in cost and
guarantee continues supply.This situation is called in-
house manufacturing.

As material is not brought from outside there is

no question of uncovering Co.instead of co a
have kind of expenses is inward which is called
as M/C set up Cost.
 Although it is an in-house man unit are informed
in an formula manner by sending written
document.
The head will have to give instruction and order
to junior employees about starting the
production.
Machines parameters are checked, setting are
adjust.Machines are cleaned and services before
starting the manufacturing.Taking summation of
all such expenses can be called machine setup
cost and uit would replace the ordering cost.
As there is no external suppkier include price is
replaced by per unit total cost of manufacturing
that raw material.

c. EOQ with Interest:-

Interest cost is related to
monetory value of inventory.Because of this
reason,with reduction in stock,Interest cost will
proportionately reduce.On the other hand,storage
expenses do not reduce with reduction in stock
level.These storage facilities are planned and created
for storing maximum inventory levels.Reduction in
storage cost like depreciation of ware house
buildings,insurance cost,power and
electricity,etc.Thus storage cost is associated with
maximum inventory.
 Safety Stock :-
Predection of average daily usage and
lead time is difficult.Raw materials may very form day-
to-day or from week-to-week,it is the case for lead time
also.Lead-time may be delayed if the usage increases,
than the company faces problem of stock out.To avoid
stock out firm may require maintaining safety stock.

4.11 Inventory Control

In Hajoori & Sons, ABC Analysis technique is used for controlling the inventory. Usually a
firm has to maintain the several types of inventory. It is not desirable to keep the same degree
of control on all the items. The Hajoori & Sons play the maximum attention to those items
whose value is highest. The companies therefore identify which item should receive the most
effort in controlling. The firm is selecting and its approach to control investment in various
types of inventory. It uses the analytical approach, which is called ABC Analysis.

In large companies, the inventory consists of thousands of items and a number of employed
to control them. Their salaries and other expenses run into lakhs of rupees. It has been found
from experience that all items include in inventory are not of equal importance. Hence, more
attention must be devoted to the control of such items. All items are divided into 3 parts.

A-class of items:

In the A class of item the major material consist of 65% of the consumption value and 25%
of total number of items. This item requires strict control over receipt, storage and issue
should be exercise over such items. As A class of items require very less time for inventory
but the company maintains low stock of inventory for all items. The A class of the item
includes Sugar, Citric Acid, Sodium Benzoate used in beverage and CO2 used only in Soda.
All these items have major value wise contribution. So are including in A class of item.

B-class of items:

In the B class of items the major material consists of 25% of consumption value and 20%
of the total number of item. It includes ascorbic acid (Vitamin C), Oil Grease, Lubricants,
Spare Parts of machine and maintenance cost.
C-class of items:

In the C class of item the major material consists of 10% of consumption value and 55% of
the total number of item include essence (Taste, Color, and Ordure), Water, Crown and other
consumption items.

VED analysis:-
Here Vstands for vital items and their stock analysis
requires more attention because out of stock situation
will result in stoppage of production,Thus V items must
be stored adequately to ensure smooth operation of the
plant.
means essential items.Such items are considered
essential for efficient running of the concern but without
these items the system would not fail.Care must be taken
to see that they are always in stock.
D Stands for desirable items which do not affect the
production immediately but availability of such items
will lead to increase in efficiency and reduction of
fatigue.

FNS analysis:-
Fstands for fast moving items and stock of each items
are consumed in a short spam of time.
Nmeans normal moving items and such items are
exhausted over a period of one year of so
S"